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21.04.2017 21:00
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Blackhawk Bancorp Announces 2017 First Quarter Earnings
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PR Newswire
BELOIT, Wis., April 21, 2017
BELOIT, Wis., April 21, 2017 /PRNewswire/ -- Blackhawk Bancorp, Inc. (OTCQX: BHWB) today announced net income of $1.2 million and diluted earnings per share (EPS) of $0.46 for the quarter ended March 31, 2017. This compares to net income of $1.4 million and diluted EPS of $0.60 for the quarter ended December 31, 2016; and to net income of $2.6 million and diluted EPS of $1.12 for the first quarter of 2016. The 2016 first quarter results included a $1.8 million (after tax) recovery of a fraud loss incurred in prior years. Excluding the large recovery in the first quarter of 2016 net income would have been $790 thousand, or $0.35 per diluted share.
"We're very pleased with our first quarter results," said Rick Bastian, the company's Chairman and Chief Executive Officer. "Excluding the non-recurring recovery realized last year, diluted EPS for the quarter is up 31% over the first quarter 2016."
Net Interest Income
Net interest income totaled $5.2 million for the quarter ended March 31, 2017. The amount is essentially unchanged compared to the quarter ended December 31, 2016 and represents a 5.6% increase compared to $4.9 million for the first quarter of 2016.
"While we didn't achieve net loan growth during the first quarter of 2017, the net interest margin improved, reflecting loan growth achieved in the fourth quarter of last year and our ability to keep funding costs stable," said Bastian.
The net interest margin for the quarter ended March 31, 2017 was 3.55%, a thirteen basis point increase compared to the net interest margin of 3.42% for the quarter ended December 31, 2016 and a seven basis point increase over the 3.48% net interest margin for the first quarter of last year. The net interest margin improvement compared to the fourth quarter of 2016 reflects the increase in total average loans for the quarter offset by a decrease in average interest-bearing cash equivalents and short-term investments, with little change to total earning assets. The improvement in the net interest margin compared to the first quarter of last year reflects a 5% increase in average total loans and the shift of $29 million of average interest-bearing cash equivalents and short-term investments to investment securities.
Average Earning assets totaled $668.9 million for the quarter ended March 31, 2017, a decrease of $2.1 million compared to the quarter ended December 31, 2016 and a $35.6 million increase compared to the first quarter of the prior year. Average total loans increased by $11.6 million, or 3%, to $415.5 million for the quarter ended March 31, 2017 compared to $403.9 million for the previous quarter, and increased $18.0 million, or 5%, compared to the first quarter of 2016.
Average total deposits for the quarter ended March 31, 2017 were $587.8 million, a $4.2 million decrease compared to the quarter ended December 31, 2016 and a $21.6 million increase compared to the first quarter of 2016. The deposit growth compared to the first quarter of 2016 included an $11.4 million, or 11%, increase in noninterest demand deposits and another $10.1 million increase in interest bearing checking, money market and savings accounts.
Provision for Loan Losses and Credit Quality
The provision for loan losses for the quarter ended March 31, 2017 totaled $360 thousand, compared to $475 thousand for the quarter ended December 31, 2016 and $495 thousand for the first quarter of 2016. Net loan charge-offs were $146 thousand for the quarter ended March 31, 2017 compared to $720 thousand for the quarter ended December 31, 2016, and to net recoveries of $23 thousand for the first quarter of 2016.
Total nonperforming assets, which includes troubled debt restructures that are performing in accordance with their modified terms, equaled $14.6 million as of March 31, 2017. This compares to $11.9 million and $13.5 million at December 31, 2016 and March 31, 2016, respectively. The 2017 first quarter increase reflects the transfer of $4.6 million of commercial loans to nonaccrual status. The majority of the amount transferred to nonaccrual relates to one relationship. We expect a substantial reduction in this credit in the second quarter of 2017.
At March 31, 2017, total nonperforming assets equaled 2.17% of total assets compared to 1.79% at December 31, 2016 and 2.00% at March 31, 2016. The ratio of the allowance for loan losses to total loans was 1.29% at March 31, 2017 compared to 1.25% at December 31, 2016 and 1.34% at March 31, 2016.
Non-Interest Income and Operating Expenses:
Non-interest income for the quarter ended March 31, 2017 totaled $2.2 million. This represents a $315 thousand decrease compared to $2.5 million for the quarter ended December 31, 2016. The reduction in non-interest income compared to the quarter ended December 31, 2016 includes a $199 thousand decrease in revenue from the sale and servicing on mortgage loans and a $156 thousand reduction in net gains on the sale of securities. Compared to the quarter ended March 31, 2106, non-interest income decreased by $2.8 million. The first quarter of 2016 includes a $2.9 million non-recurring recovery of a fraud loss incurred in prior years. Excluding that recovery, non-interest income increased by $129,000.
Operating expenses for the quarter ended March 31, 2017 totaled $5.7 million, increasing $361 thousand compared to the quarter ended December 31, 2106, and increasing by $168 thousand compared to the first quarter of 2016.
Capital Levels:
On March 14, 2017, the Company completed a $23 million capital raise that substantially improved the consolidated regulatory capital ratios. As of March 31, 2017, the company's tier 1 leverage ratio was 10.93% compared to 7.47% at December 31, 2016 and 7.40% at March 31, 2016. The company's total capital to risk-weighted assets ratio increased to 16.96% as of March 31, 2017 compared to 12.39% at December 31, 2016 and 11.82% at March 31, 2016. The company anticipates redeeming certain subordinated notes, which are included in the determination of total capital, in the second quarter of 2017. These subordinated notes contributed 123 basis points to the total capital to risk-weighted assets ratio at March 31, 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. This growth combined with ongoing strengthening of the Company's credit quality are 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.
| BLACKHAWK BANCORP, INC. AND SUBSIDIARIES | |||
| CONSOLIDATED BALANCE SHEETS | |||
| MARCH 31, 2017 AND DECEMBER 31, 2016 | |||
| (UNAUDITED) | |||
| | March 31, | | December 31, |
| Assets | 2017 | | 2016 |
| | (Amounts in thousands, except share data) | ||
| | | | |
| Cash and due from banks | $ 18,863 | | $ 16,402 |
| Securities purchased under agreements to resell | - | | - |
| Interest-bearing deposits in banks and other | 13,448 | | 7,640 |
| Total cash and cash equivalents | 32,311 | | 24,042 |
| Securities available-for-sale | 191,928 | | 191,815 |
| Loans held for sale | 534 | | 1,053 |
| Federal Home Loan Bank stock, at cost | 497 | | 1,086 |
Loans, less allowance for loan losses of $5,307 and $5,093 at March 31, 2017 and December 31, 2016, respectively | 406,891 | | 407,331 |
| Premises and equipment, net | 9,794 | | 8,242 |
| Goodwill | 5,037 | | 5,037 |
| Mortgage Servicing rights | 2,221 | | 2,189 |
| Cash surrender value of bank-owned life insurance | 10,291 | | 10,208 |
| Other assets | 13,195 | | 14,725 |
| Total assets | $ 672,699 | | $ 665,728 |
| | | | |
| Liabilities and Stockholders' Equity | | | |
| | | | |
| Liabilities | | | |
| Deposits: | | | |
| Noninterest-bearing | $ 116,420 | | $ 117,785 |
| Interest-bearing | 468,696 | | 454,581 |
| Total deposits | 585,116 | | 572,366 |
Subordinated debentures and notes (including $1,031 at fair value at March 31, 2017 and December 31, 2016) | 11,255 | | 11,255 |
| Senior secured term note | - | | 7,500 |
| Other borrowings | 311 | | 21,200 Werbung Mehr Nachrichten zur Blackhawk Bancorp Aktie kostenlos abonnieren
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