Blackhawk Banc Stock Price, News & Analysis

Blackhawk Bancorp Inc. (OTCQX: BHWB) was the parent company of Blackhawk Bank, a community-focused financial institution that served customers across southern Wisconsin and northern Illinois for over 140 years. The company traced its roots to 1881, when a group of civic leaders in Beloit, Wisconsin established Beloit Savings Bank. Through more than a century of operation, the institution built a reputation for personalized service and deep community ties in the markets it served.

In March 2023, First Mid Bancshares Inc. (NASDAQ: FMBH) announced a definitive agreement to acquire Blackhawk Bancorp in an all-stock transaction. Under the merger terms, Blackhawk shareholders received 1.15 shares of First Mid common stock for each share of BHWB stock they held. The transaction valued Blackhawk at approximately $90.3 million based on First Mid's closing share price of $27.13 on March 20, 2023. The acquisition was completed later that year, and on December 4, 2023, Blackhawk Bank officially became First Mid Bank & Trust. Following this conversion, BHWB ceased to exist as an independent publicly traded entity.

Banking Operations and Market Presence

At the time of its acquisition, Blackhawk operated ten full-service banking centers strategically positioned throughout southern Wisconsin and northern Illinois. The Wisconsin locations included branches in Beloit and Janesville, while Illinois operations spanned Rockford, Belvidere, Machesney Park, Roscoe, McHenry, and St. Charles. The bank also maintained a dedicated mortgage processing center in Roscoe, Illinois, to support its residential lending activities across both states.

As of December 31, 2022, Blackhawk Bancorp reported approximately $1.32 billion in total assets, with $782 million in outstanding loans and $1.19 billion in customer deposits. These figures reflected steady growth over the years and positioned Blackhawk as a significant regional player in its markets. In Beloit, Wisconsin, the bank was recognized as the second-largest banking institution in the city, while in Boone County, Illinois, it held the distinction of being the second-largest bank serving that market.

Commercial Banking Services

Blackhawk Bank maintained a robust commercial banking division that catered to businesses of all sizes throughout its operating footprint. The commercial lending portfolio encompassed a diverse range of products designed to meet varied business needs. The bank provided traditional term loans for capital expenditures, equipment financing for specialized business needs, and working capital lines of credit to help businesses manage cash flow fluctuations.

The institution participated in Small Business Administration (SBA) lending programs, helping qualifying businesses access government-backed financing options. Commercial real estate loans supported business property acquisitions and development projects, while construction financing facilitated new building projects throughout the region. Blackhawk also offered specialized products such as receivables financing, which allowed businesses to leverage their outstanding invoices as collateral, and letters of credit to facilitate domestic and international commercial transactions.

Beyond lending, the commercial banking team provided cash management services to help business clients optimize their treasury operations. These services included merchant processing, remote deposit capture, automated clearing house (ACH) transactions, and wire transfer capabilities. The bank's business bankers worked closely with commercial clients to structure comprehensive banking relationships that addressed both their deposit and credit needs.

Retail Banking and Consumer Products

Blackhawk offered a full suite of personal banking products through its branch network. Deposit products included various checking account options, savings accounts, money market accounts, and certificates of deposit with multiple term options. The bank emphasized relationship banking, with personal bankers available to help customers select accounts that matched their financial goals and circumstances.

On the lending side, Blackhawk provided residential mortgage loans for home purchases and refinancing, home equity loans and lines of credit, consumer installment loans, and credit card products. The bank's mortgage team guided borrowers through the home financing process, from pre-qualification through closing. Auto loans, personal loans, and other consumer credit products rounded out the retail lending offerings.

Blackhawk invested in digital banking capabilities to serve customers who preferred electronic channels. The bank's online banking platform allowed customers to check balances, transfer funds, pay bills, and manage accounts from any internet-connected device. Mobile banking applications for smartphones and tablets extended these capabilities to customers on the go, with features including mobile check deposit that eliminated trips to the branch for routine transactions.

Specialized Services and Advisory Offerings

Beyond traditional deposit and loan products, Blackhawk provided several value-added services to differentiate itself in competitive markets. The bank offered Health Savings Accounts (HSAs) to help individuals and families with high-deductible health plans save for medical expenses on a tax-advantaged basis. These accounts became increasingly popular as more employers shifted to high-deductible health insurance plans.

Investment management services were available through the bank's trust and wealth management division, which assisted clients with retirement planning, portfolio management, and estate planning strategies. The bank periodically hosted educational financial seminars on topics such as retirement planning, tax strategies, and estate planning to help community members make informed financial decisions.

For business clients, Blackhawk offered human resources consulting services to help small business owners navigate employment-related challenges. These advisory services complemented the bank's commercial banking products and reflected its approach of serving as a broad-based financial partner to business customers rather than simply a lender.

Community Banking Philosophy

Throughout its history, Blackhawk emphasized its role as a community bank with deep local roots. The institution's leadership and employees were active in the communities served by its branches, participating in civic organizations, supporting local charities, and sponsoring community events. This community involvement philosophy differentiated Blackhawk from larger regional and national banks that might have had branches in the same markets but lacked the same depth of local engagement.

The bank's lending decisions were made locally by relationship managers who understood the regional economy and had the authority to approve credits based on their knowledge of local business conditions. This localized decision-making allowed Blackhawk to be responsive to customer needs and competitive in its markets. The personal relationships that bankers built with customers over years or even decades represented a key competitive advantage for the institution.

Acquisition and Transition

The decision to merge with First Mid Bancshares reflected the ongoing consolidation trend in community banking. Smaller regional banks faced increasing pressure from regulatory compliance costs, technology investments, and competition from larger institutions with greater resources. By joining with First Mid, a larger regional bank holding company, Blackhawk's former franchise gained access to additional products, expanded geographic reach, and greater operational scale.

For Blackhawk shareholders, the all-stock transaction provided liquidity and the opportunity to participate in the growth of the combined institution. Customers of the former Blackhawk Bank gained access to First Mid's broader branch network and expanded product offerings while maintaining local branches and, in many cases, the same relationship bankers they had worked with for years. The transition to First Mid Bank & Trust in December 2023 marked the end of the Blackhawk name but maintained continuity of service in the markets the bank had served since 1881.