Blackhawk Bancorp, Inc.: Blackhawk Bancorp Announces 2018 Second Quarter Earnings

BELOIT, WI / ACCESSWIRE / July 23, 2018 / Blackhawk Bancorp, Inc. (OTCQX: BHWB) reported net income of $2.02 million for the quarter ended June 30, 2018, a 39% increase over the $1.5 million earned the previous quarter, and a 16% increase over the $1.75 million earned the second quarter of 2017. Fully diluted earnings per share for the second quarter increased $0.17 to $0.61 compared to $0.44 the quarter ended March 31, 2018, and increased by $0.08 compared to $0.53 for the quarter ended June 30, 2017. The quarterly results produced a return on average assets of 1.06% and a return on average equity of 10.25%.

For the six months ended June 30, 2108 the company reported net income of $3.5 million, a 20% increase over the $2.9 million reported for the first half of 2017. Diluted earnings per share for the first six months of 2018 increased 6% to $1.05 compared to $0.99 the first half of 2017. The six month results produced a return on average assets of 0.94% and a return on average equity of 8.92%.

Total assets increased by $60.8 million, or 8%, to $781.4 million at June 30, 2018 compared to $720.6 million as of December 31, 2017. Gross loans increased by $15.9 million, or 3%, during the first six months of 2018 to $501.5 million compared to $485.6 million at the end of the prior year. Total deposits increased by $76.0 million, or 12%, to $693.0 million compared to $617.0 million at the end of 2017.

The following table summarizes the net income and the key ratios for the last five quarters:

		Quarter Ended
(dollars in thousands, except per share data)		Jun 30, 2018				Mar 31, 2018				Dec 31, 2017				Sep 30, 2017				Jun 30, 2017
Net income		$	2,016			$	1,452			$	1,371			$	1,932			$	1,745
Diluted EPS		$	0.61			$	0.44			$	0.42			$	0.59			$	0.53
ROAA			1.06	%			.81	%			.77	%			1.09	%			1.01	%
ROAE			10.25	%			7.56	%			6.89	%			10.01	%			9.38	%
Net interest margin (1)			3.91	%			3.83	%			3.79	%			3.77	%			3.68	%
Efficiency ratio (1) (2)			70.4	%			73.8	%			72.5	%			65.8	%			66.2	%

1. Net interest margin and efficiency ratio are calculated on a tax-equivalent basis
2. Efficiency ratio is calculated excluding net securities gains (losses) and other gains (losses)

"The investments we've made in attracting talent, expanding our footprint and updating technology are beginning to generate the revenue growth we expected," said Todd James the company's Chief Executive Officer. "Thanks to the visionary leadership of Rick Bastian, who has recently announced his retirement, Blackhawk is well positioned to capitalize on current and future growth opportunities. We have a strong team in place and plan to continue building on our entrepreneurial culture and the unique value proposition that we offer to customers," he added.

Net Interest Income

Net interest income for the second quarter totaled $6.78 million, increasing $505 thousand, or 8%, compared to $6.28 million for the quarter ended March 31, 2018, and by $1.12 million, or 20%, compared to $5.66 million for the second quarter last year. The net interest margin for the quarter ended June 30, 2018 was 3.91%, an eight basis point increase compared to 3.83% for the quarter ended March 31, 2018 and a twenty-three basis point increase over the 3.68% net interest margin for the second quarter of last year.

Net interest income for the six months ended June 30, 2018 increased by $2.2million, or 20%, compared to the first half of 2017. The net interest margin for the first half of 2018 increased by twenty-six basis points to 3.87% compared to 3.61% for the first half of 2017.

The increases in net interest income and improvements in the net interest margin are the result of strong loan and deposit growth. Average total loans for the quarter ended June 30, 2017 equaled $517.4 million, a 7% increase over the most recent quarter ended March 31, 2018 and a 22% increase over the same quarter a year ago. Near the end of the second quarter 2018 there were some anticipated pay-offs and sale of a participation interest in a large credit, which reduced total loans to $501.5 million at the end of the quarter compared to total average loans for the quarter of $517.4 million.

"Prospects for continued growth remain strong," said David Adkins, the company's Chief Operating Officer and CEO of the bank subsidiary. "A robust economy and the market disruption due to industry consolidation has created an opportunity to attract customers that expect the attention and service that only a true community bank can provide," he added.

Average total loans for the first half of the year increased $81.9 million, or 20%, to $501.4 million compared to $419.5 million the first six months of 2017. Total average total deposits increased $61.3 million, or 10%, to $652.9 million compared to $591.6 the first half of 2017.

Provision for Loan Losses and Credit Quality

The provision for loan losses for the quarter ended June 30, 2018 totaled $370 thousand, compared to $510 thousand for quarter ended March 31, 2018 and $360 thousand for the second quarter of 2017. The provision for loan losses for the first six months of 2018 totaled $880 thousand, a 22% increase over the $720 thousand provision recorded in the first half of 2017. While credit metrics continue to improve, the company has continued to record loan loss provisions to accommodate loan growth.

Total nonperforming assets, which include troubled debt restructures that are performing in accordance with their modified terms, equaled $8.56 million as of June 30, 2018 compared to $8.62 million as of March 31, 2018 and $11.3 million at June 30, 2017. At June 30, 2018, the ratio of nonperforming assets to total assets equaled 1.10% compared to 1.16% at March 31, 2018 and 1.60% at June 30, 2017.

While total nonperforming assets are little changed from the most recent quarter, other measures of credit quality continue to improve. The company realized net loan recoveries of $116 thousand for the first half of 2018, with additional recoveries expected in the third quarter. The net recoveries, combined with the $880 thousand provision for loan losses has increased the ratio of the allowance for loan losses to total loans to 1.30% as of June 30, 2018 compared to 1.22% at March 31, 2018 and 1.09% at the end of 2017. The ratio of the allowance for loan losses to nonperforming loans increased to 79.2% as of June 30, 2018 compared to 75.9% at March 31, 2018 and 67.2% at the end of 2017.

Non-Interest Income and Operating Expenses

Non-interest income for the quarter ended June 30, 2018 totaled $3.04 million, a $544 thousand increase compared to $2.49 million for the quarter ended March 31, 2018 and a $486 thousand increase over $2.55 million for the second quarter of 2017. The increase compared to the most recent quarter included a $490 thousand increase in gain on sale of loans. The increase in non-interest income compared to the second quarter of 2017 includes growth in gain on sale of loans, debit card revenue and gains on the sale of securities available-for-sale.

Operating expenses for the quarter ended June 30, 2018 totaled $6.96 million, increasing by $406 thousand compared to the quarter ended March 31, 2018, and by $1.4 million, or 24%, compared to the second quarter of 2017. The increase in expenses compared to the second quarter of last year included a $921 thousand increase in salary and benefits and a $266 thousand increase in occupancy and equipment expense.

Operating expenses for the six-month period ended June 30, 2018 totaled $13.5 million, a 20% increase over the first half of 2017. The increase included a $1.6 million increase on salary and benefits and a $492 thousand increase on occupancy and equipment. The increases are the result of talent added to increase capacity in the company's business and mortgage banking areas. The increase also includes costs related to the Janesville, Wisconsin full service branch, which opened in the fourth 2017 and the Elgin, Illinois loan production office, which opened during the first quarter of 2018.

Income Taxes

The provision for income taxes for the first six months of the year increased by $13 thousand, or 2%, compared to the first half of 2017 despite a 16% increase in pre-tax income. The company realized approximately $300 thousand of savings in the first half of the year due to the Tax Cuts and Jobs Act of 2017.

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 and one commercial office in south central Wisconsin and north central Illinois, along the I-90 corridor from Elgin, Illinois to Janesville, Wisconsin. The company offers a variety of value-added consultative services to its business customers 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.

Todd James
[e-mail]

David Adkins
[e-mail]

Phone: [phone]

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2018 AND DECEMBER 31, 2017
(UNAUDITED)

		June 30,				December 31,
Assets		2018				2017
		(Amounts in thousands, except
		share and per share data)
Cash and due from banks		$	16,942			$	19,326
Interest-bearing deposits in banks and other			43,001				2,215
Total cash and cash equivalents			59,943				21,541
Securities available-for-sale			181,466				176,350
Loans held for sale			6,496				747
Federal Home Loan Bank stock, at cost			491				654
Loans, less allowance for loan losses of $6,499 and $5,503
at June 30, 2018 and December 31, 2017, respectively			488,509				479,539
Premises and equipment, net			12,133				11,120
Goodwill			5,037				5,037
Mortgage Servicing rights			2,677				2,508
Cash surrender value of bank-owned life insurance			10,666				10,512
Other assets			14,011				12,613
Total assets		$	781,429			$	720,621
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Noninterest-bearing		$	116,304			$	115,724
Interest-bearing			576,664				501,271
Total deposits			692,968				616,995
Subordinated debentures and notes (including $1,031 at fair value at
June 30, 2018 and December 31, 2017)			5,155				5,155
Other borrowings			-				16,228
Other liabilities			3,856				4,109
Total liabilities			701,979				642,487
Stockholders' equity
Common stock, $0.01 par value, 10,000,000 shares authorized;
3,366,192 and 3,364,092 shares issued as of June 30, 2018 and
December 31, 2017, respectively			34				34
Additional paid-in capital			33,198				32,874
Retained earnings			47,963				45,114
Treasury stock, 91,613 and 91,043 shares at cost as of June 30, 2018
and December 31, 2017, respectively			(1,032	)			(1,124	)
Accumulated other comprehensive income (loss)			(713	)			1,236
Total stockholders' equity			79,450				78,134
Total liabilities and stockholders' equity		$	781,429			$	720,621

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

		For the Quarter Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2018				2018				2017				2017				2017
		(Amounts in thousands, except per share data)
Interest Income:
Interest and fees on loans		$	6,610			$	5,875			$	5,659			$	5,357			$	4,980
Interest on available-for-sale securities:
Taxable			839				772				685				806				802
Tax-exempt			359				375				402				384				389
Interest on interest-bearing deposits and other			59				73				13				44				45
Total interest income			7,867				7,095				6,759				6,591				6,216
Interest Expense:
Interest on deposits			991				752				635				527				438
Interest on subordinated debentures and notes			59				53				47				47				85
Interest on senior secured term note			-				-				-				-				-
Interest on other borrowings			34				12				29				44				32
Total interest expense			1,084				817				711				618				555
Net interest income before provision for loan losses			6,783				6,278				6,048				5,973				5,661
Provision for loan losses			370				510				710				360				360
Net interest income after provision for loan losses			6,413				5,768				5,338				5,613				5,301
Noninterest Income:
Service charges on deposits accounts			769				741				787				791				730
Net gain on sale of loans			960				470				695				687				679
Net loan servicing income			173				177				175				179				186
Debit card interchange fees			675				695				623				608				605
Net gains on sales of securities available-for-sale			59				6				(159	)			104				(13	)
Net other gains (losses)			(17	)			(6	)			1				(7	)			(12	)
Increase in cash surrender value of bank-owned life insurance			73				81				74				74				74
Other			346				330				337				344				303
Total noninterest income			3,038				2,494				2,533				2,780				2,552
Noninterest Expenses:
Salaries and employee benefits			4,050				3,867				3,828				3,355				3,129
Occupancy and equipment			891				832				709				637				625
Data processing			417				395				362				382				374
Debit card processing and issuance			336				293				300				309				301
Advertising and marketing			143				153				180				111				101
Professional fees			316				256				305				305				250
Office Supplies			79				110				82				66				59
Telephone			126				124				122				118				116
Other			604				526				615				560				644
Total noninterest expenses			6,962				6,556				6,503				5,843				5,599
Income before income taxes			2,489				1,706				1,368				2,550				2,254
Provision for income taxes			473				254				(3	)			618				509
Net income		$	2,016			$	1,452			$	1,371			$	1,932			$	1,745
Key Ratios
Basic Earnings Per Common Share		$	0.61			$	0.44			$	0.42			$	0.59			$	0.53
Diluted Earnings Per Common Share			0.61				0.44				0.42				0.59				0.53
Dividends Per Common Share			0.10				0.08				0.08				0.08				0.08
Net Interest Margin (1)			3.91	%			3.83	%			3.79	%			3.77	%			3.68	%
Efficiency Ratio (1)(2)			70.41	%			73.79	%			72.45	%			65.77	%			66.23	%
Return on Assets			1.06	%			0.81	%			0.77	%			1.09	%			1.01	%
Return on Common Equity			10.25	%			7.56	%			6.89	%			10.01	%			9.38	%
(1) Net interest margin and the efficiency ratio are calculated on a taxable-equivalent basis
(2) Efficiency ratio is calculated excluding net securities gains (losses) and other gains (losses)

CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

		As of
		June 30,				March 31,				December 31,				September 30,				June 30,
		2018				2018				2017				2017				2017
		(Amounts in thousands, except per share data)
Cash and due from banks		$	16,942			$	16,727			$	19,326			$	16,633			$	17,251
Interest-bearing deposits in banks and other			43,001				13,503				2,215				7,415				7,368
Securities			181,466				171,814				176,350				177,702				195,409
Net loans/leases			495,005				497,630				480,286				460,684				428,827
Goodwill			5,037				5,037				5,037				5,037				5,037
Other assets			39,978				37,743				37,407				37,165				36,561
Total assets		$	781,429			$	742,454			$	720,621			$	704,636			$	690,453
Deposits		$	692,968			$	656,114			$	616,995			$	606,539			$	591,949
Subordinated debentures			5,155				5,155				5,155				5,155				5,155
Borrowings			-				-				16,228				11,858				14,583
Other liabilities			3,856				3,185				4,109				3,815				3,120
Stockholders' equity			79,450				78,000				78,134				77,269				75,646
Total liabilities and stockholders' equity		$	781,429			$	742,454			$	720,621			$	704,636			$	690,453
ASSET QUALITY DATA
(Amounts in thousands)		June 30,				March 31,				December 31,				September 30,				June 30,
		2018				2018				2017				2017				2017
Non-accrual loans		$	3,539			$	3,511			$	3,657			$	5,852			$	5,679
Accruing loans past due 90 days or more			388				139				-				-				-
Troubled debt restructures - accruing			4,283				4,456				4,527				4,886				5,177
Total nonperforming loans		$	8,210			$	8,106			$	8,184			$	10,738			$	10,856
Other real estate owned			350				511				470				343				442
Total nonperforming assets		$	8,560			$	8,617			$	8,654			$	11,081			$	11,298
Total loans		$	501,504			$	503,779			$	485,789			$	465,929			$	434,657
Allowance for loan losses		$	6,499			$	6,149			$	5,503			$	5,864			$	5,613
		$	495,005			$	497,630			$	480,286			$	460,065			$	429,044
Nonperforming Assets to total Assets			1.10	%			1.16	%			1.17	%			1.54	%			1.60	%
Nonperforming loans to total loans			1.64	%			1.61	%			1.63	%			2.30	%			2.50	%
Allowance for loan losses to total loans			1.30	%			1.22	%			1.09	%			1.26	%			1.29	%
Allowance for loan losses to nonperforming loans			79.2	%			75.9	%			67.2	%			54.6	%			51.7	%
		For the Quarter Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
ROLLFORWARD OF ALLOWANCE		2018				2018				2017				2017				2017
Beginning Balance		$	6,149			$	5,503			$	5,864			$	5,613			$	5,307
Provision			370				510				710				360				360
Loans charged off			178				52				1,326				156				224
Loan recoveries			158				188				255				47				170
Net charge-offs			20				(136	)			1,071				109				54
Ending Balance		$	6,499			$	6,149			$	5,503			$	5,864			$	5,613

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

		Six months ended June 30,
		2018				2017
		(Amounts in thousands, except per share data)
Interest Income:
Interest and fees on loans		$	12,485			$	9,668
Interest on available-for-sale securities:
Taxable			1,611				1,566
Tax-exempt			734				760
Interest on interest-bearing deposits and other			132				59
Total interest income			14,962				12,053
Interest Expense:
Interest on deposits			1,743				839
Interest on subordinated debentures and notes			112				247
Interest on senior secured term note			-				67
Interest on other borrowings			46				41
Total interest expense			1,901				1,194
Net interest income before provision for loan losses			13,061				10,859
Provision for loan losses			880				720
Net interest income after provision for loan losses			12,181				10,139
Noninterest Income:
Service charges on deposits accounts			1,510				1,398
Net gain on sale of loans			1,430				1,057
Net loan servicing income			350				378
Debit card interchange fees			1,370				1,181
Net gains (losses) on sales of securities available-for-sale			65				(13	)
Net other gains (losses)			(23	)			(26	)
Increase in cash surrender value of bank-owned life insurance			154				157
Other			676				614
Total noninterest income			5,532				4,746
Noninterest Expenses:
Salaries and employee benefits			7,917				6,311
Occupancy and equipment			1,723				1,231
Data processing			812				772
Debit card processing and issuance			629				573
Advertising and marketing			296				202
Professional fees			572				509
Office Supplies			189				140
Telephone			250				228
Other			1,130				1,309
Total noninterest expenses			13,518				11,275
Income before income taxes			4,195				3,610
Provision for income taxes			727				714
Net income		$	3,468			$	2,896
Key Ratios
Basic Earnings Per Common Share		$	1.05			$	0.99
Diluted Earnings Per Common Share			1.05				0.99
Dividends Per Common Share			0.18				0.12
Net Interest Margin (1)			3.87	%			3.61	%
Efficiency Ratio (1)(2)			72.01	%			70.22	%
Return on Assets			0.94	%			0.84	%
Return on Common Equity			8.92	%			7.83	%
(1) Net interest margin and the efficiency ratio are calculated on a taxable-equivalent basis
(2) Efficiency ratio is calculated excluding net securities gains (losses) and other gains (losses)

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET WITH RESULTANT INTEREST AND RATES

Average Balance Sheet with Resultant Interest and Rates
(Amounts in thousands)
(Yields on a tax-equivalent basis)		For the Quarter Ended
		June 30, 2018												March 31, 2018												June 30, 2017
		Average								Average				Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate				Balance				Interest				Rate
Interest Earning Assets:
Interest-bearing deposits and other		$	14,326			$	59				1.64	%		$	20,001			$	73				1.48	%		$	17,945			$	45				1.00	%
Investment securities:
Taxable investment securities			127,448				839				2.64	%			120,523				772				2.60	%			146,999				802				2.19	%
Tax-exempt investment securities			47,889				359				3.92	%			51,004				375				3.83	%			53,339				389				4.56	%
Total Investment securities			175,337				1,198				2.99	%			171,527				1,147				2.96	%			200,338				1,191				2.82	%
Loans			517,412				6,610				5.12	%			485,284				5,875				4.91	%			423,430				4,980				4.73	%
Total Earning Assets		$	707,075			$	7,867				4.52	%		$	676,812			$	7,095				4.32	%		$	641,713			$	6,216				4.03	%
Allowance for loan losses			(6,403	)											(5,800	)											(5,473	)
Cash and due from banks			17,228												18,080												15,204
Other assets			41,613												41,744												41,452
Total Assets		$	759,513											$	730,836											$	692,896
Interest Bearing Liabilities:
Interest bearing checking accounts		$	225,104			$	294				0.52	%		$	224,529			$	241				0.43	%		$	216,514			$	181				0.34	%
Savings and money market deposits			225,411				397				0.71	%			207,427				250				0.49	%			179,203				74				0.17	%
Time deposits			90,779				300				1.33	%			90,261				261				1.17	%			80,043				183				0.95	%
Total interest bearing deposits			541,294				991				0.73	%			522,217				752				0.58	%			475,760				438				0.37	%
Subordinated debentures and notes			5,155				59				4.59	%			5,155				53				4.16	%			6,831				85				5.01	%
Borrowings			6,999				34				1.95	%			3,242				12				1.55	%			12,595				32				1.04	%
Total Interest-Bearing Liabilities		$	553,448			$	1,084				0.79	%		$	530,614			$	817				0.62	%		$	495,186			$	555				0.45	%
Interest Rate Spread											3.73	%											3.70	%											3.58	%
Noninterest checking accounts			123,689												118,376												119,466
Other liabilities			3,472												3,935												3,665
Total liabilities			680,609												652,925												618,317
Total Stockholders' equity			78,904												77,911												74,579
Total Liabilities and
Stockholders' Equity		$	759,513											$	730,836											$	692,896
Net Interest Income/Margin						$	6,783				3.91	%						$	6,278				3.83	%						$	5,661				3.68	%

BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
AVERAGE BALANCE SHEET WITH RESULTANT INTEREST AND RATES

Average Balance Sheet with Resultant Interest and Rates
(Amounts in thousands)
(yields on a tax-equivalent basis)		For the Six Months Ended
		June 30, 2018												June 30, 2017
		Average								Average				Average								Average
		Balance				Interest				Rate				Balance				Interest				Rate
Interest Earning Assets:
Interest-bearing deposits and other		$	17,148			$	132				1.55	%		$	13,104			$	59				0.93	%
Investment securities:
Taxable investment securities			124,005				1,611				2.62	%			144,365				1,566				2.19	%
Tax-exempt investment securities			49,438				734				3.90	%			52,114				760				4.54	%
Total Investment securities			173,443				2,345				2.99	%			196,479				2,326				2.81	%
Loans			501,437				12,485				5.02	%			419,495				9,668				4.65	%
Total Earning Assets		$	692,028			$	14,962				4.42	%		$	629,078			$	12,053				4.00	%
Allowance for loan losses			(6,103	)											(5,318	)
Cash and due from banks			17,652												16,498
Other assets			41,676												40,701
Total Assets		$	745,253											$	680,959
Interest Bearing Liabilities:
Interest bearing checking accounts		$	224,818			$	535				0.48	%		$	212,878			$	329				0.31	%
Savings and money market deposits			216,469				647				0.60	%			177,535				143				0.16	%
Time deposits			90,521				561				1.25	%			82,903				367				0.89	%
Total interest bearing deposits			531,808				1,743				0.66	%			473,316				839				0.36	%
Subordinated debentures			5,155				112				4.38	%			9,031				247				5.52	%
Borrowings			5,131				46				1.82	%			11,840				108				1.85	%
Total Interest-Bearing Liabilities		$	542,094			$	1,901				0.71	%		$	494,187			$	1,194				0.49	%
Interest Rate Spread											3.71	%											3.51	%
Noninterest checking accounts			121,047												118,235
Other liabilities			3,702												3,717
Total liabilities			666,843												616,139
Total Stockholders' equity			78,410												64,820
Total Liabilities and
Stockholders' Equity		$	745,253											$	680,959
Net Interest Income/Margin						$	13,061				3.87	%						$	10,859				3.61	%

SOURCE: Blackhawk Bancorp, Inc.