BELOIT, WI / ACCESSWIRE / January 26, 2018 / Blackhawk Bancorp, Inc. (OTCQX: BHWB) reported net income of $6.20 million for the year ended December 31, 2017, a 4% increase over the $5.98 million earned in 2016. Fully diluted earnings per share for the year was $2.01 compared to $2.59 for the year ended December 31, 2016. The prior year results include a $1.81 million after-tax gain related to the recovery of a prior year fraud loss, which added $0.78 per diluted share to the 2016 earnings. Excluding the 2016 gain, net income for 2017 increased by $2.03 million, or 49% and diluted earnings per share increased by $0.20 per share or 11%.
"Our improvement in core earnings for 2017 was driven by loan and deposit growth," said Rick Bastian, the company's Chairman & CEO. "The capital raise we completed in the first quarter was critical to supporting last year's growth and puts Blackhawk in a great position to capitalize on opportunities we anticipate from disruptions in our market due to bank consolidation," he added.
Total assets increased by $54.7 million, or 8%, to $720.5 million at December 31, 2017 compared to $665.7 million as of December 31, 2016. Net loans increased by $72.2 million, or 18%, to $479.5 million compared to $407.3 million at the end of the prior year. Total deposits increased by $44.5 million, or 8%, to $616.9 million compared to $572.4 million at the end of 2016.
Net income for the fourth quarter of 2017 was $1.37 million, a 29% decrease compared to the most recent quarter ended September 30, 2017, and a 2% decrease compared to the fourth quarter of 2016. Fully diluted earnings per share for the quarter was $0.42 compared to $0.59 for the most recent quarter and $0.60 for same quarter last year.
The decrease in fourth quarter earnings compared to the most recent quarter included a $350 thousand increase in the provision for loan losses, a $263 thousand decrease in gain (loss) on sale of securities, and a $473 thousand increase in salary and benefits. The increase in the provision for loan losses was recorded to accommodate the strong loan growth achieved in the second half of the year. The increase in salaries and benefits included $200 thousand for a special bonus paid to all employees. The remainder of the increase reflects increased benefit costs and additions to staff to generate and support the growth anticipated in 2018.
"Our board approved a special bonus for all employees of 3% of their 2017 compensation, up to $1,500," said Bastian. "We had a great year and are optimistic about our prospects for 2018. It only makes sense to share our success with the dedicated and hardworking employees who make it happen."
The following table summarizes the net income and the high-level performance measures for the last five quarters:
Quarter Ended | ||||||||||||||||||||
(dollars in thousands, except per share data) | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | |||||||||||||||
Net income | $ | 1,371 | $ | 1,932 | $ | 1,745 | $ | 1,151 | $ | 1,397 | ||||||||||
Diluted EPS | $ | 0.42 | $ | 0.59 | $ | 0.53 | $ | 0.46 | $ | 0.60 | ||||||||||
ROAA | .77 | % | 1.09 | % | 1.01 | % | .70 | % | .89 | % | ||||||||||
ROAE | 7.66 | % | 10.01 | % | 9.39 | % | 8.49 | % | 10.87 | % | ||||||||||
Net interest margin (1) | 3.79 | % | 3.77 | % | 3.68 | % | 3.55 | % | 3.42 | % | ||||||||||
Efficiency ratio (1) (2) | 72.5 | % | 65.8 | % | 66.2 | % | 74.7 | % | 68.5 | % | ||||||||||
- Net interest margin and efficiency ratio are calculated on a tax-equivalent basis
- Efficiency ratio is calculated excluding net securities gains (losses) and other gains (losses)
Net Interest Income
Net interest income totaled $6.05 million for the quarter ended December 31, 2017, increasing $75 thousand, or 1%, compared to $5.97 million for the quarter ended September 30, 2017, and by $858 thousand, or 17%, compared to $5.19 million for the quarter ended December 31, 2016. The net interest margin for the quarter ended December 31, 2017 was 3.79%, a two basis point increase compared to the net interest margin of 3.77% for the quarter ended September 30, 2017 and a thirty-seven basis point increase over the 3.42% net interest margin for the fourth quarter of last year.
The growth in net interest income and the improvement in the net interest margin for the fourth quarter compared to the most recent quarter ended September 30, 2017 reflects a $24.4 million increase in average total loans. The loan growth was funded by an $8.7 million increase in average total deposits, and an $11.1 million decrease in average securities available for sale. The growth in net interest income and improvement in the net interest margin compared to the fourth quarter of last year includes the reduction in interest expense on senior and subordinated debt at the holding, which was redeemed with the proceeds of the capital raised in the first quarter of 2017. In addition, average total loans for the quarter increased by $69.8 million, or 17%, compared to the fourth quarter of last year. The loan growth was funded by a $20.4 million, or 3%, increase in average total deposits, a $22.6 million decrease in interest earning cash equivalents and $13.4 million decrease in securities available for sale compared to the fourth quarter of 2016.
Net interest income for the year ended December 31, 2017 increased by $2.42 million, or 12%, to $22.88 million compared to $20.46 million the year before. The year-to-date net interest margin was 3.70%, a thirty basis point increase over the 3.40% net interest margin for 2016. Total average earning assets for the year ended December 31, 2017 increased by $22.5 million, or 4%, to $642.5 million compared to $620.0 million for 2016. Average total loans increased by $38.0 million, or 9%, to $440.7 million compared to $402.8 million for 2016. Total average deposits for the year ended December 31, 2017 increased by $10.8 million, or 2% compared to 2016.
Provision for Loan Losses and Credit Quality
The provision for loan losses for the quarter ended December 31, 2017 totaled $710 thousand, compared to $360 thousand for quarter ended September 30, 2017 and $475 thousand for the third quarter of 2016. The provision for loan losses for the year ended December 31, 2017 totaled $1.79 million compared to $1.88 million for 2016. Loan charge-offs, net of recoveries, were $1.07 million for the year ended December 31, 2017, compared to $1.58 million the prior year.
Total nonperforming assets, which include troubled debt restructures that are performing in accordance with their modified terms, equaled $8.65 million as of December 31, 2017 compared to $11.08 million as of September 30, 2017 and $11.92 million at December 31, 2016. At December 31, 2017, the ratio of nonperforming assets to total assets equaled 1.20% compared to 1.57% at September 30, 2017 and 1.79% at December 31, 2016. The ratio of the allowance for loan losses to total loans was 1.13% at December 31, 2017 compared to 1.26% at September 30, 2017 and 1.23% at December 31, 2016.
Non-Interest Income and Operating Expenses
Non-interest income for the quarter ended December 31, 2017 totaled $2.53 million, a $247 thousand decrease compared to $2.78 million for the quarter ended September 30, 2017 and a $24 thousand increase over $2.51 million for the fourth quarter of 2016. The decrease in noninterest income compared to the most recent quarter ended September 30, 2017 was primarily due to a decrease of $263 thousand in net gain (loss) on the sale of securities. The increase compared to the fourth quarter of last year includes growth in deposit service charges, debit card interchange and loan servicing income, which was offset by a $315 thousand decrease in net gain (loss) on the sale of securities.
Non-interest income for the year ended December 31, 2017 was $10.06 million, a $2.35 million decrease compared to $12.41 million for 2016. The 2016 results include a $2.97 million recovery of a prior year fraud loss. Excluding the non-recurring recovery, non-interest income for 2017 increased $623 thousand, or 7%, over the prior year.
Operating expenses for the quarter ended December 31, 2017 totaled $6.50 million, increasing $660 thousand compared to the quarter ended September 30, 2017, and by $1.19 million compared to the fourth quarter of 2016. Operating expenses for the year ended December 31, 2017 totaled $23.62 million, increasing by $1.07 million, or 5%, compared to $22.55 million for 2016. The increases for the quarter and for the year reflect increases in salary and benefits as the company has been adding talent and capacity in its commercial and mortgage banking areas.
Income Taxes
The provision for income taxes was a net benefit of $3 thousand dollars for the fourth quarter compared to a $618 thousand expense for the quarter ended September 30, 2017 and $512 thousand expense the fourth quarter of 2016. The provision for income taxes for the year ended December 31, 2017 was $1.33 million, or 18% of pre-tax income, compared to $2.46 million, or 29% of pre-tax income, for 2016. The effective tax differs from statutory tax rates due to tax exempt income from municipal securities, increases in cash surrender value of life insurance, tax benefits of a captive insurance company, and tax credits related to a Low Income Housing Tax Credit investment. In addition, during the fourth quarter of 2017, the company reversed a valuation allowance related to a state net operating loss carryover, reducing the provision for income taxes by $310 thousand. The tax benefit from the reversal of the valuation allowance was partially offset by a charge of $92 thousand as a result of the enactment of The Tax Cuts and Jobs Act of 2017.
Capital
On March 14, 2017, the company netted $21.7 million in a capital raise that substantially improved the consolidated regulatory capital ratios. As of December 31, 2017, the company's tier 1 leverage and total risk based capital ratios were 11.05% and 14.74%, compared to 7.47% and 12.36%, respectively, at December 31, 2016.
Outlook
Blackhawk expects to grow by pursuing creditworthy and profitable business and consumer relationships in its Wisconsin and Illinois markets, emphasizing the value of its personal attention and service that remains unmatched by larger competitors. Growth, combined with ongoing strengthening of the company's credit quality, is expected to lead to improved earnings. Growth and earnings could, however, be tempered by uncertain economic conditions, competitive pressures, regulatory burden and the interest rate environment.
About Blackhawk Bancorp
Blackhawk Bancorp, Inc. is headquartered in Beloit, Wisconsin and is the parent company of Blackhawk Bank, which operates eight banking centers in south central Wisconsin and north central Illinois, along the I-90 corridor from Belvidere, Illinois to Janesville, Wisconsin. Blackhawk's locations serve individuals and small businesses, primarily with fewer than 200 employees. The company offers a variety of value-added consultative services to small businesses and their employees related to the financial products it provides.
Forward-Looking Statements
When used in this communication, the words "believes," "expects," and similar expressions are intended to identify forward-looking statements. The company's actual results may differ materially from those described in the forward-looking statements. Factors which could cause such a variance to occur include, but are not limited to: heightened competition; adverse state and federal regulation; failure to obtain new or retain existing customers; ability to attract and retain key executives and personnel; changes in interest rates; unanticipated changes in industry trends; unanticipated changes in credit quality and risk factors, including general economic conditions; success in gaining regulatory approvals when required; changes in the Federal Reserve Board monetary policies; unexpected outcomes of new and existing litigation in which Blackhawk or its subsidiaries, officers, directors or employees is named defendants; technological changes; changes in accounting principles generally accepted in the United States; changes in assumptions or conditions affecting the application of "critical accounting policies"; inability to recover previously recorded losses as anticipated, and the inability of third party vendors to perform critical services for the company or its customers.
Further information is available on the company's website at www.blackhawkbank.com.
For further information:
Blackhawk Bancorp, Inc.
R. Richard Bastian, III, Chairman & CEO
rbastian@blackhawkbank.com
Phone: (608) 364-8911
Todd J. James, EVP & CFO
tjames@blackhawkbank.com
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
December 31, | December 31, | |||||||
Assets | 2017 | 2016 | ||||||
(Amounts in thousands, except | ||||||||
share and per share data) | ||||||||
Cash and due from banks | $ | 19,326 | $ | 16,402 | ||||
Interest-bearing deposits in banks and other | 2,215 | 7,640 | ||||||
Total cash and cash equivalents | 21,541 | 24,042 | ||||||
Securities available-for-sale | 176,350 | 191,815 | ||||||
Loans held for sale | 747 | 1,053 | ||||||
Federal Home Loan Bank stock, at cost | 654 | 1,086 | ||||||
Loans, less allowance for loan losses of $5,864 and $5,093 | ||||||||
at December 31, 2017 and December 31, 2016, respectively | 479,539 | 407,331 | ||||||
Premises and equipment, net | 11,120 | 8,242 | ||||||
Goodwill | 5,037 | 5,037 | ||||||
Mortgage Servicing rights | 2,508 | 2,189 | ||||||
Cash surrender value of bank-owned life insurance | 10,512 | 10,208 | ||||||
Other assets | 12,492 | 14,725 | ||||||
Total assets | $ | 720,500 | $ | 665,728 | ||||
Liabilities and Stockholders' Equity | ||||||||
Liabilities | ||||||||
Deposits: | ||||||||
Noninterest-bearing | $ | 115,603 | $ | 117,785 | ||||
Interest-bearing | 501,271 | 454,581 | ||||||
Total deposits | 616,874 | 572,366 | ||||||
Subordinated debentures and notes (including $1,031 at fair value at | ||||||||
December 31, 2017 and December 31, 2016) | 5,155 | 11,255 | ||||||
Senior secured term note | - | 7,500 | ||||||
Other borrowings | 16,228 | 21,200 | ||||||
Other liabilities | 4,109 | 3,857 | ||||||
Total liabilities | 642,366 | 616,178 | ||||||
Stockholders' equity | ||||||||
Common stock, $0.01 par value, 10,000,000 shares authorized; | ||||||||
3,347,552 and 2,376,750 shares issued as of December 31, 2017 and | ||||||||
December 31, 2016, respectively | 34 | 24 | ||||||
Additional paid-in capital | 32,874 | 10,664 | ||||||
Retained earnings | 45,114 | 39,990 | ||||||
Treasury stock, 95,065 and 90,844 shares at cost as of December 31, 2017 | ||||||||
and December 31, 2016, respectively | (1,124) | (1,020) | ||||||
Accumulated other comprehensive income (loss) | 1,236 | (108) | ||||||
Total stockholders' equity | 78,134 | 49,550 | ||||||
Total liabilities and stockholders' equity | $ | 720,500 | $ | 665,728 | ||||
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
Twelve months ended December 31, | ||||||||
2017 | 2016 | |||||||
(Amounts in thousands, except per share data) | ||||||||
Interest Income: | ||||||||
Interest and fees on loans | $ | 20,683 | $ | 18,823 | ||||
Interest on available-for-sale securities: | ||||||||
Taxable | 3,056 | 2,785 | ||||||
Tax-exempt | 1,546 | 1,214 | ||||||
Interest on interest-bearing deposits and other | 118 | 275 | ||||||
Total interest income | 25,403 | 23,097 | ||||||
Interest Expense: | ||||||||
Interest on deposits | 2,001 | 1,651 | ||||||
Interest on subordinated debentures and notes | 342 | 633 | ||||||
Interest on senior secured term note | 67 | 345 | ||||||
Interest on other borrowings | 113 | 12 | ||||||
Total interest expense | 2,523 | 2,641 | ||||||
Net interest income before provision for loan losses | 22,880 | 20,456 | ||||||
Provision for loan losses | 1,790 | 1,880 | ||||||
Net interest income after provision for loan losses | 21,090 | 18,576 | ||||||
Noninterest Income: | ||||||||
Service charges on deposits accounts | 2,976 | 2,845 | ||||||
Net gain on sale of loans | 2,439 | 2,402 | ||||||
Net loan servicing income | 732 | 289 | ||||||
Debit card interchange fees | 2,412 | 2,285 | ||||||
Net gains (losses) on sales of securities available-for-sale | (68 | ) | 156 | |||||
Net other gains (losses) | (32 | ) | 2,781 | |||||
Increase in cash surrender value of bank-owned life insurance | 305 | 306 | ||||||
Other | 1,296 | 1,347 | ||||||
Total noninterest income | 10,060 | 12,411 | ||||||
Noninterest Expenses: | ||||||||
Salaries and employee benefits | 13,493 | 12,360 | ||||||
Occupancy and equipment | 2,577 | 2,561 | ||||||
Data processing | 1,516 | 1,388 | ||||||
Debit card processing and issuance | 1,183 | 1,226 | ||||||
Advertising and marketing | 493 | 406 | ||||||
Professional fees | 1,119 | 1,160 | ||||||
Office Supplies | 287 | 322 | ||||||
Telephone | 469 | 431 | ||||||
Other | 2,484 | 2,693 | ||||||
Total noninterest expenses | 23,621 | 22,547 | ||||||
Income before income taxes | 7,529 | 8,440 | ||||||
Provision for income taxes | 1,329 | 2,462 | ||||||
Net income | $ | 6,200 | $ | 5,978 | ||||
Key Ratios | ||||||||
Basic Earnings Per Common Share | $ | 2.02 | $ | 2.60 | ||||
Diluted Earnings Per Common Share | 2.01 | 2.59 | ||||||
Dividends Per Common Share | 0.28 | 0.16 | ||||||
Net Interest Margin (1) | 3.70 | % | 3.40 | % | ||||
Efficiency Ratio (1)(2) | 69.64 | % | 73.75 | % | ||||
Return on Assets | 0.89 | % | 0.90 | % | ||||
Return on Common Equity | 8.73 | % | 11.95 | % | ||||
CONSOLIDATED STATEMENTS OF INCOME
For the Quarter Ended | ||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | ||||||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||||||
Interest Income: | ||||||||||||||||||||
Interest and fees on loans | $ | 5,659 | $ | 5,357 | $ | 4,980 | $ | 4,688 | $ | 4,749 | ||||||||||
Interest on available-for-sale securities: | ||||||||||||||||||||
Taxable | 685 | 806 | 802 | 764 | 758 | |||||||||||||||
Tax-exempt | 402 | 384 | 389 | 371 | 315 | |||||||||||||||
Interest on interest-bearing deposits and other | 13 | 44 | 45 | 14 | 34 | |||||||||||||||
Total interest income | 6,759 | 6,591 | 6,216 | 5,837 | 5,856 | |||||||||||||||
Interest Expense: | ||||||||||||||||||||
Interest on deposits | 635 | 527 | 438 | 401 | 416 | |||||||||||||||
Interest on subordinated debentures and notes | 47 | 47 | 85 | 162 | 161 | |||||||||||||||
Interest on senior secured term note | - | - | - | 67 | 83 | |||||||||||||||
Interest on other borrowings | 29 | 44 | 32 | 9 | 6 | |||||||||||||||
Total interest expense | 711 | 618 | 555 | 639 | 666 | |||||||||||||||
Net interest income before provision for loan losses | 6,048 | 5,973 | 5,661 | 5,198 | 5,190 | |||||||||||||||
Provision for loan losses | 710 | 360 | 360 | 360 | 475 | |||||||||||||||
Net interest income after provision for loan losses | 5,338 | 5,613 | 5,301 | 4,838 | 4,715 | |||||||||||||||
Noninterest Income: | ||||||||||||||||||||
Service charges on deposits accounts | 787 | 791 | 730 | 668 | 715 | |||||||||||||||
Net gain on sale of loans | 695 | 687 | 679 | 378 | 702 | |||||||||||||||
Net loan servicing income | 175 | 179 | 186 | 192 | 67 | |||||||||||||||
Debit card interchange fees | 623 | 608 | 605 | 576 | 557 | |||||||||||||||
Net gains on sales of securities available-for-sale | (159 | ) | 104 | (13 | ) | - | 156 | |||||||||||||
Net other gains (losses) | 1 | (7 | ) | (12 | ) | (14 | ) | (51 | ) | |||||||||||
Increase in cash surrender value of bank-owned life insurance | 74 | 74 | 74 | 83 | 75 | |||||||||||||||
Other | 337 | 344 | 303 | 311 | 288 | |||||||||||||||
Total noninterest income | 2,533 | 2,780 | 2,552 | 2,194 | 2,509 | |||||||||||||||
Noninterest Expenses: | ||||||||||||||||||||
Salaries and employee benefits | 3,828 | 3,355 | 3,129 | 3,182 | 3,040 | |||||||||||||||
Occupancy and equipment | 709 | 637 | 625 | 606 | 592 | |||||||||||||||
Data processing | 362 | 382 | 374 | 398 | 384 | |||||||||||||||
Debit card processing and issuance | 300 | 309 | 301 | 272 | 258 | |||||||||||||||
Advertising and marketing | 180 | 111 | 101 | 101 | 114 | |||||||||||||||
Professional fees | 305 | 305 | 250 | 259 | 252 | |||||||||||||||
Office Supplies | 82 | 66 | 59 | 81 | 79 | |||||||||||||||
Telephone | 122 | 118 | 116 | 112 | 115 | |||||||||||||||
Other | 615 | 560 | 644 | 665 | 481 | |||||||||||||||
Total noninterest expenses | 6,503 | 5,843 | 5,599 | 5,676 | 5,315 | |||||||||||||||
Income before income taxes | 1,368 | 2,550 | 2,254 | 1,356 | 1,909 | |||||||||||||||
Provision for income taxes | (3 | ) | 618 | 509 | 205 | 512 | ||||||||||||||
Net income | $ | 1,371 | $ | 1,932 | $ | 1,745 | $ | 1,151 | $ | 1,397 | ||||||||||
Key Ratios | ||||||||||||||||||||
Basic Earnings Per Common Share | $ | 0.42 | $ | 0.59 | $ | 0.53 | $ | 0.46 | $ | 0.61 | ||||||||||
Diluted Earnings Per Common Share | 0.42 | 0.59 | 0.53 | 0.46 | 0.60 | |||||||||||||||
Dividends Per Common Share | 0.08 | 0.08 | 0.08 | 0.04 | 0.04 | |||||||||||||||
Net Interest Margin (1) | 3.79 | % | 3.77 | % | 3.68 | % | 3.55 | % | 3.42 | % | ||||||||||
Efficiency Ratio (1)(2) | 72.45 | % | 65.77 | % | 66.23 | % | 74.66 | % | 68.48 | % | ||||||||||
Return on Assets | 0.77 | % | 1.09 | % | 1.01 | % | 0.70 | % | 0.89 | % | ||||||||||
Return on Common Equity | 7.66 | % | 10.01 | % | 9.38 | % | 8.49 | % | 10.87 | % | ||||||||||
CONSOLIDATED BALANCE SHEETS
As of | ||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | ||||||||||||||||
(Amounts in thousands, except per share data) | ||||||||||||||||||||
Cash and due from banks | $ | 19,326 | $ | 16,633 | $ | 17,251 | $ | 18,863 | $ | 16,402 | ||||||||||
Interest-bearing deposits in banks and other | 2,215 | 7,415 | 7,368 | 13,448 | 7,640 | |||||||||||||||
Securities | 176,350 | 177,702 | 195,409 | 191,928 | 191,815 | |||||||||||||||
Net loans/leases | 480,286 | 460,684 | 428,827 | 407,425 | 408,384 | |||||||||||||||
Goodwill | 5,037 | 5,037 | 5,037 | 5,037 | 5,037 | |||||||||||||||
Other assets | 37,286 | 37,165 | 36,561 | 35,998 | 36,450 | |||||||||||||||
Total assets | $ | 720,500 | $ | 704,636 | $ | 690,453 | $ | 672,699 | $ | 665,728 | ||||||||||
Deposits | $ | 616,874 | $ | 606,539 | $ | 591,949 | $ | 585,116 | $ | 572,366 | ||||||||||
Subordinated debentures | 5,155 | 5,155 | 5,155 | 11,255 | 11,255 | |||||||||||||||
Borrowings | 16,228 | 11,858 | 14,583 | 311 | 28,700 | |||||||||||||||
Other liabilities | 4,109 | 3,815 | 3,120 | 2,906 | 3,120 | |||||||||||||||
Stockholders' equity | 78,134 | 77,269 | 75,646 | 73,111 | 49,550 | |||||||||||||||
Total liabilities and stockholders' equity | $ | 720,500 | $ | 704,636 | $ | 690,453 | $ | 672,699 | $ | 664,991 | ||||||||||
ASSET QUALITY DATA
(Amounts in thousands)
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
2017 | 2017 | 2017 | 2017 | 2016 | ||||||||||||||||
Non-accrual loans | $ | 3,657 | $ | 5,852 | $ | 5,679 | $ | 8,867 | $ | 4,775 | ||||||||||
Accruing loans past due 90 days or more | - | - | - | 15 | 1,198 | |||||||||||||||
Troubled debt restructures - accruing | 4,527 | 4,886 | 5,177 | 5,125 | 5,072 | |||||||||||||||
Total nonperforming loans | $ | 8,184 | $ | 10,738 | $ | 10,856 | $ | 14,007 | $ | 11,045 | ||||||||||
Other real estate owned | 470 | 343 | 442 | 597 | 871 | |||||||||||||||
Total nonperforming assets | $ | 8,654 | $ | 11,081 | $ | 11,298 | $ | 14,604 | $ | 11,916 | ||||||||||
Total loans | $ | 485,789 | $ | 465,929 | $ | 434,657 | $ | 412,695 | $ | 413,477 | ||||||||||
Allowance for loan losses | $ | 5,503 | $ | 5,864 | $ | 5,613 | $ | 5,307 | $ | 5,093 | ||||||||||
Nonperforming Assets to total Assets | 1.20 | % | 1.57 | % | 1.64 | % | 2.17 | % | 1.79 | % | ||||||||||
Nonperforming loans to total loans | 1.68 | % | 2.30 | % | 2.50 | % | 3.39 | % | 2.67 | % | ||||||||||
Allowance for loan losses to total loans | 1.13 | % | 1.26 | % | 1.29 | % | 1.29 | % | 1.23 | % | ||||||||||
Allowance for loan losses to nonperforming loans | 67.2 | % | 54.6 | % | 51.7 | % | 37.9 | % | 46.1 | % | ||||||||||
For the Quarter Ended | ||||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
ROLLFORWARD OF ALLOWANCE | 2017 | 2017 | 2017 | 2017 | 2016 | |||||||||||||||
Beginning Balance | $ | 5,864 | $ | 5,613 | $ | 5,307 | $ | 5,093 | $ | 5,338 | ||||||||||
Provision | 710 | 360 | 360 | 360 | 475 | |||||||||||||||
Loans charged off | 1,326 | 156 | 224 | 199 | 1,170 | |||||||||||||||
Loan recoveries | 255 | 47 | 170 | 53 | 450 | |||||||||||||||
Net charge-offs | 1,071 | 109 | 54 | 146 | 720 | |||||||||||||||
Ending Balance | $ | 5,503 | $ | 5,864 | $ | 5,613 | $ | 5,307 | $ | 5,093 | ||||||||||
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET WITH RESULTANT INTEREST AND RATES
For the Quarter Ended | ||||||||||||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||||||||||||||
Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||||||||||||||
Interest-bearing deposits and other | $ | 4,259 | $ | 13 | 1.24 | % | $ | 14,318 | $ | 44 | 1.23 | % | $ | 26,940 | $ | 34 | 0.53 | % | ||||||||||||||||||
Investment securities: | ||||||||||||||||||||||||||||||||||||
Taxable investment securities | 124,189 | 685 | 2.19 | % | 137,483 | 806 | 2.33 | % | 149,309 | 758 | 2.02 | % | ||||||||||||||||||||||||
Tax-exempt investment securities | 55,044 | 402 | 4.61 | % | 52,838 | 384 | 4.61 | % | 43,299 | 315 | 4.42 | % | ||||||||||||||||||||||||
Total Investment securities | 179,233 | 1,087 | 2.93 | % | 190,321 | 1,190 | 2.96 | % | 192,608 | 1,073 | 2.56 | % | ||||||||||||||||||||||||
Loans | 473,820 | 5,659 | 4.74 | % | 449,410 | 5,357 | 4.74 | % | 403,937 | 4,749 | 4.68 | % | ||||||||||||||||||||||||
Total Earning Assets | $ | 657,312 | $ | 6,759 | 4.22 | % | $ | 654,049 | $ | 6,591 | 4.15 | % | $ | 623,485 | $ | 5,856 | 3.84 | % | ||||||||||||||||||
Allowance for loan losses | (5,945 | ) | (5,766 | ) | (5,309 | ) | ||||||||||||||||||||||||||||||
Cash and due from banks | 16,608 | 14,254 | 15,080 | |||||||||||||||||||||||||||||||||
Other assets | 33,951 | 41,504 | 37,820 | |||||||||||||||||||||||||||||||||
Total Assets | $ | 701,926 | $ | 704,041 | $ | 671,076 | ||||||||||||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||||||||||||||
Interest bearing checking accounts | $ | 191,654 | $ | 199 | 0.41 | % | $ | 210,082 | $ | 270 | 0.40 | % | $ | 209,515 | $ | 160 | 0.30 | % | ||||||||||||||||||
Savings and money market deposits | 200,754 | 172 | 0.34 | % | 183,826 | 74 | 0.19 | % | 174,517 | 66 | 0.15 | % | ||||||||||||||||||||||||
Time deposits | 97,037 | 264 | 1.08 | % | 91,072 | 183 | 1.00 | % | 88,267 | 190 | 0.86 | % | ||||||||||||||||||||||||
Total interest bearing deposits | 489,445 | 635 | 0.51 | % | 484,980 | 527 | 0.43 | % | 472,299 | 416 | 0.35 | % | ||||||||||||||||||||||||
Subordinated debentures and notes | 5,155 | 47 | 3.64 | % | 5,155 | 47 | 3.65 | % | 11,255 | 161 | 5.69 | % | ||||||||||||||||||||||||
Borrowings | 8,851 | 29 | 1.26 | % | 14,203 | 44 | 1.22 | % | 12,268 | 89 | 2.87 | % | ||||||||||||||||||||||||
Total Interest-Bearing Liabilities | $ | 503,451 | $ | 711 | 0.56 | % | $ | 504,338 | $ | 618 | 0.49 | % | $ | 495,822 | $ | 666 | 0.53 | % | ||||||||||||||||||
Interest Rate Spread | 3.66 | % | 3.66 | % | 3.31 | % | ||||||||||||||||||||||||||||||
Noninterest checking accounts | 122,981 | 118,748 | 119,749 | |||||||||||||||||||||||||||||||||
Other liabilities | 4,455 | 4,382 | 4,353 | |||||||||||||||||||||||||||||||||
Total liabilities | 630,887 | 627,468 | 619,924 | |||||||||||||||||||||||||||||||||
Total Stockholders' equity | 71,039 | 76,573 | 51,152 | |||||||||||||||||||||||||||||||||
Total Liabilities and | ||||||||||||||||||||||||||||||||||||
Stockholders' Equity | $ | 701,926 | $ | 704,041 | $ | 671,076 | ||||||||||||||||||||||||||||||
Net Interest Income/Margin | $ | 6,048 | 3.79 | % | $ | 5,973 | 3.77 | % | $ | 5,190 | 3.42 | % | ||||||||||||||||||||||||
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET WITH RESULTANT INTEREST AND RATES
For the Twelve Months Ended | ||||||||||||||||||||||||
December 31, 2017 | December 31, 2016 | |||||||||||||||||||||||
Average | Average | Average | Average | |||||||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | |||||||||||||||||||
Interest Earning Assets: | ||||||||||||||||||||||||
Interest-bearing deposits and other | $ | 11,180 | $ | 118 | 1.06 | % | $ | 40,014 | $ | 275 | 0.52 | % | ||||||||||||
Investment securities: | ||||||||||||||||||||||||
Taxable investment securities | 137,545 | 3,056 | 2.22 | % | 136,398 | 2,785 | 2.04 | % | ||||||||||||||||
Tax-exempt investment securities | 53,035 | 1,546 | 4.57 | % | 40,821 | 1,214 | 4.55 | % | ||||||||||||||||
Total Investment securities | 190,580 | 4,602 | 2.88 | % | 177,219 | 3,999 | 2.62 | % | ||||||||||||||||
Loans | 440,728 | 20,683 | 4.69 | % | 402,757 | 18,823 | 4.67 | % | ||||||||||||||||
Total Earning Assets | $ | 642,488 | $ | 25,403 | 4.09 | % | $ | 619,990 | $ | 23,097 | 3.83 | % | ||||||||||||
Allowance for loan losses | (5,589 | ) | (5,046 | ) | ||||||||||||||||||||
Cash and due from banks | 15,960 | 14,439 | ||||||||||||||||||||||
Other assets | 40,892 | 36,119 | ||||||||||||||||||||||
Total Assets | $ | 693,751 | $ | 665,502 | ||||||||||||||||||||
Interest Bearing Liabilities: | ||||||||||||||||||||||||
Interest bearing checking accounts | $ | 206,824 | $ | 738 | 0.36 | % | $ | 221,779 | $ | 681 | 0.31 | % | ||||||||||||
Savings and money market deposits | 184,973 | 403 | 0.22 | % | 172,110 | 252 | 0.15 | % | ||||||||||||||||
Time deposits | 88,524 | 860 | 0.97 | % | 83,440 | 718 | 0.86 | % | ||||||||||||||||
Total interest bearing deposits | 480,321 | 2,001 | 0.42 | % | 477,329 | 1,651 | 0.35 | % | ||||||||||||||||
Subordinated debentures | 7,077 | 342 | 4.83 | % | 11,255 | 633 | 5.63 | % | ||||||||||||||||
Borrowings | 11,682 | 180 | 1.55 | % | 11,001 | 357 | 3.24 | % | ||||||||||||||||
Total Interest-Bearing Liabilities | $ | 499,080 | $ | 2,523 | 0.51 | % | $ | 499,585 | $ | 2,641 | 0.53 | % | ||||||||||||
Interest Rate Spread | 3.58 | % | 3.30 | % | ||||||||||||||||||||
Noninterest checking accounts | 119,560 | 111,781 | ||||||||||||||||||||||
Other liabilities | 4,072 | 4,127 | ||||||||||||||||||||||
Total liabilities | 622,712 | 615,493 | ||||||||||||||||||||||
Total Stockholders' equity | 71,039 | 50,009 | ||||||||||||||||||||||
Total Liabilities and | ||||||||||||||||||||||||
Stockholders' Equity | $ | 693,751 | $ | 665,502 | ||||||||||||||||||||
Net Interest Income/Margin | $ | 22,880 | 3.70 | % | $ | 20,456 | 3.40 | % | ||||||||||||||||
SOURCE: Blackhawk Bancorp, Inc.
