Blackhawk Bancorp Announces 2021 First Quarter Earnings
04/08/2021 - 04:30 PM
BELOIT, WI / ACCESSWIRE / April 8, 2021 / Blackhawk Bancorp, Inc. (OTCQX:BHWB) reported net income of $3.43 million for the quarter ended March 31, 2021, a 2% increase over the $3.35 million earned the previous quarter, and a 65% increase compared to the $2.07 million earned the first quarter of 2020. Fully diluted earnings per share (EPS) for the quarter was $1.02, an increase of $0.02 as compared to $1.00 for the quarter ended December 31, 2020 and an increase of $0.39, or 62% , as compared to $0.63 reported for the quarter ended March 31, 2020. The first quarter 2021 results produced a Return on Average Equity (ROAE) of 12.44% and a Return on Average Assets (ROAA) of 1.16% .
The increase in earnings compared to the most recent quarter included a $1.22 million decrease in the provision for loan losses and a $0.28 million increase in net interest income. These earnings gains were offset by a $0.66 million decrease in revenue from the sale and servicing of mortgage loans, a $0.43 million decrease in net gains from the sale of securities and a $0.39 million increase in operating expenses.
The increase in net income for the first quarter of 2021 compared to the first quarter of the prior year reflects a $1.1 million increase in net interest income and a $1.7 million increase in revenue from the sale and servicing of mortgage loans. These increases were partially offset by a $1.22 million increase in operating expenses.
"We are extremely pleased with our first quarter results" said Todd James, the Company's Chairman and CEO. "While the uncertain path and speed of the post-pandemic recovery creates elevated risk, credit quality is holding up well and supports the reduction in provision expense. In addition, despite the decrease from the fourth quarter of 2020, mortgage banking activity remained strong, and exceeded our expectations for the first quarter."
Total assets of the company increased by $66 million , or 6% , to $1.2 billion as of March 31, 2021 compared to $1.1 billion as of December 31, 2020. Total gross loans increased by $32.4 million , or 5% , and total investment securities increased $27.1 million , or 8% , during the first three months of 2021. Total Deposits increased by $81.0 million , or 8% , to $1.1 billion compared to $987.3 million at the end of 2020.
Net Interest Income
Net interest income for the first quarter of 2021 totaled $9.72 million , an increase of $0.28 million , or 3% , compared to the fourth quarter of 2020, and up $1.10 million , or 13% , compared to the first quarter of last year. The net interest margin was 3.52% for the first quarter of 2021 as compared to 3.63% for the quarter ended December 31, 2020, and 3.83% for the first quarter of the prior year.
The increase in net interest income compared to the first quarter of last year was due to an increase in average total earning assets, which increased by $220.8 million , or 24% , to $1.13 billion compared to $911.9 million the first quarter of 2020. The increase included a $56.9 million increase in average total loans, a $127.5 million increase in average investment securities and a $36.4 increase in interest bearing deposits at other financial institutions. The $56.9 million increase in average total loans includes $85.8 million in average Paycheck Protection Program (PPP) loans. During the first quarter of 2021 $0.79 million of PPP fees were recognized, resulting in a 4.77% annualized yield on average PPP loans for three months ended March 31, 2021. The PPP, pandemic-related stimulus payments and an overall influx of deposits drove a $204.5 million , or 24% , increase in total average deposits for the first quarter of 2021 compared to the first quarter of last year. With the majority of this liquidity being deployed in the investment securities portfolio or held in interest-bearing deposit accounts at other financial institutions, the net interest margin dropped thirty-one basis points to 3.52% compared to 3.83% for the first quarter of the prior year. Further decreases in the net interest margin were mitigated by Blackhawk's ability to react quickly, lowering overall cost of interest-bearing liabilities by fifty basis points for the first quarter compared to the first quarter of last year.
Provision for Loan Losses and Asset Quality
The provision for loan losses for the quarter ended March 31, 2021 totaled $0.50 million , as compared to $1.72 million for the quarter ended December 31, 2020, and $0.77 million for the first quarter of 2020. The decreased provision reflects an improved outlook, especially as it relates to pandemic related losses. Net charge-offs for the first quarter equaled $0.15 million .
Total nonperforming assets, which include troubled debt restructures performing in accordance with their modified terms, equaled $8.4 million as of March 31, 2021, as compared to $9.1 million as of December 31, 2020, and $13.4 million at March 31, 2020. At March 31, 2021, the ratio of nonperforming loans to total loans equaled 1.17% , as compared to 1.34% at December 31, 2020, and 2.09% at March 31, 2020. The allowance for loan losses to total loans was 1.56% as of March 31, 2020, as compared to 1.59% at December 31, 2020, and 1.29% as of March 31, 2020. The ratio of the allowance for loan losses to nonperforming loans increased to 133.0% as of March 31, 2021, as compared to 118.7% at December 31, 2020, and 61.4% at March 31, 2020.
While non-performing asset levels have decreased, management believes that there is still a high level of uncertainty as to the path and breadth of the economic recovery, elevating the risk of losses in future quarters. Many borrowers have taken advantage of PPP, other stimulus programs, and the loan modifications provided by Blackhawk, which has the potential to mask underlying issues. Management continues to work closely with borrowers to ensure credit issues are identified and addressed as early as possible, improving the overall probability of repayment.
Blackhawk has provided payment relief to borrowers negatively affected by the COVID-19 pandemic, including full payment deferrals, principal payment deferrals and other modifications providing payment relief since the beginning of the pandemic. While many of those customers have returned to normal payments, as of March 31, 2021 loans totaling $21.8 million are performing under the original or extended modified terms, including $10.3 million in hospitality and food service sectors.
Non-Interest Income and Operating Expenses
Non-interest income for the quarter ended March 31, 2021 totaled $5.03 million , a $0.93 million decrease compared to $5.97 million the prior quarter, and a $1.83 million increase over the $3.20 million recorded in the first quarter of 2020. The decrease compared to the fourth quarter of 2020 includes decreases of $0.66 million in net revenue from the sale and servicing of mortgage loans, $0.09 million in deposit service charges and $0.43 million in net gains on sales of securities. The increase in non-interest income compared to the first quarter of 2020 is primarily due to a $1.72 million increase in revenue from the sale and servicing of mortgage loans.
Operating expenses for the quarter ended March 31, 2021 totaled $9.71 million , increasing by $0.39 million , or 4% , compared to the quarter ended December 31, 2020, and increasing by $1.22 million , or 14% , compared to the first quarter of 2020. Other expense for the first quarter of 2021 included a $0.26 million penalty related to the prepayment of a Federal Home Loan Bank advance accounting for much of the increase compared to the most recent quarter. The increase compared to the first quarter of 2020 also included a $0.70 million increase in compensation expense, which was partially due to an increase in variable compensation related to mortgage loan production.
Outlook
The outlook for Blackhawk, like much of the banking industry, is clouded by uncertainty related to the COVID-19 pandemic crisis. Blackhawk believes there continues to be risk of elevated credit losses in future quarters as the economic impact of the crisis plays out, and will continue taking steps to increase revenue, implement government stimulus programs and work with credit customers to offset and mitigate losses to the extent possible. Management believes the Company's financial position is strong and it has ample resources to withstand a potentially severe and protracted recession. Blackhawk will continue to pursue 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. In addition to organic growth opportunities, Blackhawk may also pursue growth through selective acquisitions. Ability to grow or maintain profitability may be affected by uncertain economic conditions, competitive pressures, changes in 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. The combined entity operates eleven full-service banking centers and a dedicated commercial office, which are located in Rock County, Wisconsin and the Illinois counties of Winnebago, Boone, McHenry, Lake, and Kane. The Company's footprint stretches along the I-90 corridor from Janesville, Wisconsin to Elgin, Illinois and into the Northwest collar counties of the Chicagoland area. The company offers a variety of value-added consultative services to its business customers and their employees related to the financial products it provides.
Disclosures Regarding non-GAAP Measures
This report refers to financial measures that are identified as non-GAAP that the Company believes help to evaluate and measure the Company's performance, including the presentation of the net interest margin ratio and efficiency ratio calculations on a taxable-equivalent basis. Non-GAAP measures are also used to assist investor comparison by identifying nonrecurring events such as acquisition-related expenses, nonrecurring securities gains and the impact such items have on the performance measures of return on average assets, return on average equity, diluted earnings per share, and the efficiency ratio. This supplemental information should not be considered in isolation or as a substitute for the related GAAP measures.
Forward-Looking Statements
When used in this communication, the words "believes," "expects," "likely", "would", 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 particularly in the Company's markets; potential deterioration in real estate values, 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. The inclusion of forward-looking information should not be construed as a representation by the Company or any person that future events or plans contemplated by the Company will be achieved. The Company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information or otherwise.
Further information is available on the company's website at www.blackhawkbank.com .
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2021 AND DECEMBER 31, 2020 (UNAUDITED)
March 31, December 31, Assets
2021 2020
(Dollars in thousands, except
share and per share data) Cash and due from banks
$ 15,108 $ 12,012 Interest-bearing deposits in banks and other institutions
46,284 42,119 Total cash and cash equivalents
61,392 54,131
Certificates of deposit in banks and other institutions
3,915 4,159 Equity securities at fair value
2,501 2,517 Securities available-for-sale
376,686 349,565 Loans held for sale
6,304 6,096 Federal Home Loan Bank stock, at cost
2,150 2,150 Loans, less allowance for loan losses of $11,116 and $10,764
at March 31, 2021 and December 31, 2020, respectively
694,095 662,225 Premises and equipment, net
19,919 20,254 Goodwill and core deposit intangible
11,914 12,018 Mortgage servicing rights
3,746 3,409 Cash surrender value of bank-owned life insurance
11,213 11,126 Other assets
13,798 13,949 Total assets
$ 1,207,633 $ 1,141,599
Liabilities and Stockholders' Equity
Liabilities
Deposits:
Noninterest-bearing
$ 321,830 $ 268,866 Interest-bearing
746,367 718,388 Total deposits
1,068,197 987,254 Subordinated debentures and notes (including $1,031 at fair value at
March 31, 2021 and December 31, 2020)
5,155 5,155 Senior secured term note
12,445 12,833 Other borrowings
4,000 14,000 Other liabilities
7,138 10,602 Total liabilities
1,096,935 1,029,844
Stockholders' equity
Common stock, $0.01 par value, 10,000,000 shares authorized;
3,464,917 and 3,435,348 shares issued as of March 31, 2021 and
December 31, 2020, respectively
35 35 Additional paid-in capital
35,267 35,062 Retained earnings
72,736 69,676 Treasury stock, 105,304 and 62,999 shares at cost as of March 31, 2021
and December 31, 2020, respectively
(2,130 ) (941 ) Accumulated other comprehensive income (loss)
4,790 7,923 Total stockholders' equity
110,698 111,755 Total liabilities and stockholders' equity
$ 1,207,633 $ 1,141,599
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
Three Months Ended March 31,
2021 2020
(Amounts in thousands, except per share data)
Interest Income:
Interest and fees on loans
$ 8,155 $ 8,033 Interest and dividends on available-for-sale securities:
Taxable
1,721 1,505 Tax-exempt
384 323 Interest on deposits in other financial institutions
41 162 Total interest income
10,301 10,023 Interest Expense:
Interest on deposits
415 1,177 Interest on subordinated debentures
41 53 Interest on senior secured term note
107 156 Interest on other borrowings
20 22 Total interest expense
583 1,408 Net interest income before provision for loan losses
9,718 8,615 Provision for loan losses
500 765 Net interest income after provision for loan losses
9,218 7,850
Noninterest Income:
Service charges on deposits accounts
690 897 Net gain on sale of loans
2,362 905 Net loan servicing income
369 110 Debit card interchange fees
1,027 832 Net gains on sales of securities available-for-sale
- 99 Net other gains (losses)
42 - Increase in cash surrender value of bank-owned life insurance
87 85 Change in value of equity securities
(35 ) (70 ) Other
493 343 Total noninterest income
5,035 3,201
Noninterest Expenses:
Salaries and employee benefits
5,734 5,035 Occupancy and equipment
1,182 1,083 Data processing
591 510 Debit card processing and issuance
425 397 Advertising and marketing
99 97 Amortization of core deposit intangible
104 115 Professional fees
390 367 Office Supplies
77 90 Telephone
141 150 Other
968 646 Total noninterest expenses
9,711 8,490 Income before income taxes
4,542 2,561 Provision for income taxes
1,112 487 Net income
$ 3,430 $ 2,074
Key Ratios
Basic Earnings Per Common Share
$ 1.02 $ 0.63 Diluted Earnings Per Common Share
1.02 0.63 Dividends Per Common Share
0.11 0.11
Net Interest Margin (1)
3.52 % 3.83 % Efficiency Ratio (1)(2)
65.53 % 71.89 % Return on Assets
1.16 % 0.85 % Return on Common Equity
12.44 % 8.31 %
(1) Non-GAAP Presentations: Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including the presentation of the net interest margin and efficiency ratio calculations on a taxable equivalent basis ("TE"). The net interest margin ratio is calculated by dividing net interest income on a tax equivalent basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability.
(2) The efficiency ratio is calculated as noninterest expense divided by the sum of net interest income on a TE basis, noninterest income less any securities gains (losses) or other gains (losses), and also includes a TE adjustment on the increases in cash surrender value of bank-owned life insurance.
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
For the Quarter Ended
March 31,
December 31,
September 30,
June 30,
March 31,
2021
2020
2020
2020
2020
(Dollars in thousands, except per share data) Interest Income:
Interest and fees on loans
$ 8,155 $ 8,079 $ 8,671 $ 8,658 $ 8,033 Interest on available-for-sale securities:
Taxable
1,721 1,598 1,607 1,618 1,505 Tax-exempt
384 384 372 371 323 Interest on deposits in other financial institutions
41 33 41 40 162 Total interest income
10,301 10,094 10,691 10,687 10,023 Interest Expense:
Interest on deposits
415 458 565 639 1,177 Interest on subordinated debentures
41 41 42 45 53 Interest on senior secured term note
107 113 119 111 156 Interest on other borrowings
20 40 47 19 22 Total interest expense
583 652 773 814 1,408 Net interest income before provision for loan losses
9,718 9,442 9,918 9,873 8,615 Provision for loan losses
500 1,715 2,615 2,505 765 Net interest income after provision for loan losses
9,218 7,727 7,303 7,368 7,850
Noninterest Income:
Service charges on deposits accounts
690 781 747 610 897 Net gain on sale of loans
2,362 3,572 3,412 3,192 905 Net loan servicing income
369 (177 ) 26 (389 ) 110 Debit card interchange fees
1,027 979 1,002 924 832 Net gains on sales of securities available-for-sale
- 428 - 8 99 Net other gains (losses)
42 - 58 6 - Increase in cash surrender value of bank-owned life insurance
87 75 76 74 85 Other
458 310 344 425 273 Total noninterest income
5,035 5,968 5,665 4,850 3,201
Noninterest Expenses:
Salaries and employee benefits
5,734 5,851 5,585 5,477 5,035 Occupancy and equipment
1,182 986 1,137 1,074 1,083 Data processing
591 683 629 561 510 Debit card processing and issuance
425 384 409 394 397 Advertising and marketing
99 75 87 38 97 Amortization of intangibles
104 107 107 107 115 Professional fees
390 373 386 405 367 Office Supplies
77 90 94 88 90 Telephone
141 140 138 149 150 Other
968 637 714 659 646 Total noninterest expenses
9,711 9,326 9,286 8,952 8,490 Income before income taxes
4,542 4,369 3,682 3,266 2,561 Provision for income taxes
1,112 1,021 819 704 487 Net income
$ 3,430 $ 3,348 $ 2,863 $ 2,562 $ 2,074
Key Ratios
Basic Earnings Per Common Share
$ 1.02 $ 1.00 $ 0.86 $ 0.77 $ 0.63 Diluted Earnings Per Common Share
1.02 1.00 0.86 0.77 0.63 Dividends Per Common Share
0.11 0.11 0.11 0.11 0.11
Net Interest Margin (1)
3.52 % 3.63 % 3.83 % 3.99 % 3.83 % Efficiency Ratio (1)(2)
65.53 % 61.80 % 59.39 % 60.43 % 71.89 % Return on Assets
1.16 % 1.20 % 1.03 % 0.96 % 0.85 % Return on Common Equity
12.44 % 12.08 % 10.64 % 10.16 % 8.31 %
(1) Non-GAAP Presentations: Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance, including the presentation of net interest income, net interest margin and efficiency ratio calculations on a taxable equivalent basis ("TE"). The net interest margin is calculated by dividing net interest income on a TE basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability.
(2) The efficiency ratio is calculated as noninterest expense divided by the sum of net interest income on an TE basis, noninterest income less any securities gains (losses) or other gains (losses), and also includes a TE adjustment on interest on tax-exempt securities, loans, and the increases in cash surrender value of bank-owned life insurance.
(UNAUDITED)
As of
March 31, December 31, September 30, June 30, March 31,
2021 2020 2020 2020 2020
(Amounts in thousands, except per share data) Cash and due from banks
$ 15,108 $ 12,012 $ 17,403 $ 14,527 $ 15,240 Interest-bearing deposits in banks and other
50,199 46,278 47,848 25,246 6,775 Securities
379,187 352,082 317,761 301,726 265,165 Net loans/leases
700,399 668,321 681,060 697,881 626,797 Goodwill and core deposit intangible
11,914 12,018 12,125 12,232 12,340 Other assets
50,826 50,888 50,105 49,485 50,688 Total assets
$ 1,207,633 $ 1,141,599 $ 1,126,302 $ 1,101,097 $ 977,005
Deposits
$ 1,068,197 $ 987,254 $ 960,773 $ 939,066 $ 843,061 Subordinated debentures
5,155 5,155 5,155 5,155 5,155 Senior secured term note
12,445 12,833 13,222 13,611 14,000 Borrowings
4,000 14,000 29,000 29,000 10,000 Other liabilities
7,138 10,602 10,161 9,758 6,083 Stockholders' equity
110,698 111,755 107,991 104,507 98,706 Total liabilities and stockholders' equity
$ 1,207,633 $ 1,141,599 $ 1,126,302 $ 1,101,097 $ 977,005
ASSET QUALITY DATA
(Amounts in thousands)
March 31, December 31, September 30, June 30, March 31,
2021 2020 2020 2020 2020
Non-accrual loans
$ 6,361 $ 7,013 $ 8,584 $ 8,427 $ 9,680 Accruing loans past due 90 days or more
- - 196 - 845 Troubled debt restructures - accruing
1,996 2,057 2,176 2,361 2,770 Total nonperforming loans
$ 8,357 $ 9,070 $ 10,956 $ 10,788 $ 13,295 Other real estate owned
- 1 1 762 123 Total nonperforming assets
$ 8,357 $ 9,071 $ 10,957 $ 11,550 $ 13,418
Total loans
$ 711,515 $ 679,085 $ 691,003 $ 707,983 $ 634,957 Allowance for loan losses
$ 11,116 $ 10,764 $ 9,943 $ 10,102 $ 8,160
$ 700,399 $ 668,321 $ 681,060 $ 697,881 $ 626,797 Nonperforming Assets to total Assets
0.69 % 0.79 % 0.97 % 1.05 % 1.37 % Nonperforming loans to total loans
1.17 % 1.34 % 1.59 % 1.52 % 2.09 % Allowance for loan losses to total loans
1.56 % 1.59 % 1.44 % 1.43 % 1.29 % Allowance for loan losses to nonperforming loans
133.0 % 118.7 % 90.8 % 93.6 % 61.4 %
For the Quarter Ended
March 31, December 31, September 30, June 30, March 31, ROLLFORWARD OF ALLOWANCE
2021 2020 2020 2020 2020
Beginning Balance
$ 10,764 $ 9,943 $ 10,102 $ 8,160 $ 7,941 Provision
500 1,715 2,615 2,505 765 Loans charged off
582 1,334 2,892 639 633 Loan recoveries
434 440 118 76 87 Net charge-offs
148 894 2,774 563 546 Ending Balance
$ 11,116 $ 10,764 $ 9,943 $ 10,102 $ 8,160
BLACKHAWK BANCORP, INC. AND SUBSIDIARIES
Average Balance Sheet with Resultant Interest and Rates
(Dollars in thousands - unaudited)
(Yields on a tax-equivalent basis) (1)
For the Quarter Ended
March 31, 2021 December 31, 2020 March 31, 2020
Average Average Average Average Average Average
Balance Interest Rate Balance Interest Rate Balance Interest Rate Interest Earning Assets:
Interest-bearing deposits and other
$ 74,108 $ 41 0.22 % $ 30,058 $ 32 0.43 % $ 37,668 $ 162 1.74 % Investment securities:
Taxable investment securities
320,740 1,721 2.18 % 285,167 1,598 2.23 % 204,526 1,505 2.96 % Tax-exempt investment securities
52,122 384 3.83 % 51,902 384 3.78 % 40,876 323 4.09 % Total Investment securities
372,862 2,105 2.41 % 337,069 1,982 2.47 % 245,402 1,828 3.15 % Loans
685,654 8,155 4.82 % 678,335 8,079 4.74 % 628,802 8,033 5.14 %
Total Earning Assets
$ 1,132,624 $ 10,301 3.73 % $ 1,045,462 $ 10,093 3.88 % $ 911,872 $ 10,023 4.46 % Allowance for loan losses
(11,075 ) (10,313 ) (8,015 ) Cash and due from banks
16,052 16,032 15,623 Other assets
58,706 58,663 58,984
Total Assets
$ 1,196,307 $ 1,109,844 $ 978,464
Interest Bearing Liabilities:
Interest bearing checking accounts
$ 284,527 $ 161 0.23 % $ 261,739 $ 150 0.23 % $ 270,849 $ 334 0.50 % Savings and money market deposits
356,615 84 0.10 % 349,028 98 0.11 % 282,113 362 0.52 % Time deposits
81,807 170 0.84 % 84,166 210 0.99 % 113,865 481 1.70 % Total interest bearing deposits
722,949 415 0.23 % 694,933 458 0.26 % 666,827 1,177 0.71 % Subordinated debentures and notes
5,155 41 3.23 % 5,155 41 3.19 % 5,155 53 4.15 % Borrowings
26,369 127 1.96 % 30,186 152 2.01 % 24,601 178 2.91 %
Total Interest-Bearing Liabilities
$ 754,473 $ 583 0.31 % $ 730,274 $ 651 0.36 % $ 696,583 $ 1,408 0.81 %
Interest Rate Spread
3.42 % 3.52 % 3.65 %
Noninterest checking accounts
322,667 261,182 174,607 Other liabilities
7,373 8,202 6,868 Total liabilities
1,084,513 999,658 878,058 Total Stockholders' equity
111,794 110,186 100,406 Total Liabilities and
Stockholders' Equity
$ 1,196,307 $ 1,109,844 $ 978,464
Net Interest Income/Margin
$ 9,718 3.52 % $ 9,442 3.63 % $ 8,615 3.83 %
(1) Management discloses certain non-GAAP financial measures to evaluate and measure the Company's performance including a presentation of net interest income with a net interest margin ratio on a tax-equivalent (TE) basis. The net interest margin is calculated by dividing net interest income on a TE basis by average earning assets for the period. Management believes this measure provides investors with information regarding comparative balance sheet profitability. Nonaccrual loans are included in the above-stated average balances.
Blackhawk Bancorp, Inc. tjames@blackhawkbank.com
Matthew McDonnell, SVP & CFOmmcdonnell@blackhawkbank.com
Phone: (608) 364-8911
SOURCE: Blackhawk Bancorp, Inc.
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