BELOIT, Wis., June 18 /PRNewswire-FirstCall/ — Blackhawk Bancorp, Inc. (BULLETIN BOARD: BHWB) today announced that it will pay its 73rd consecutive quarterly cash dividend, nine cents a share, on July 2, 2008, to shareholders of record as of June 20, 2008. That amounts to 36 cents per share on an annualized basis, representing a yield of approximately 3.6% on the stock’s recent trading price. The company also reported the results of the election of directors at its recent annual meeting of shareholders and on its outlook for the remainder of 2008.
At the annual meeting, shareholders re-elected four directors and elected one new director to three year terms ending in 2011. Re-elected were R. Richard Bastian, III, president and CEO, Roger G. Bryden, John B. Clark and James D. Metz. Eric Anderberg, vice president and secretary of Dial Machine, a family owned contract machine shop headquartered in Rockford, was newly elected. Anderberg has been a tireless advocate for US manufacturing. He is a director and past president of the Rockford Tooling and Machining Association; is active in the National Tooling and Machining Association; and also sits on the Industrial Round Table for the Federal Reserve of Chicago.
The company also reported that Diane M. Hendricks has been appointed to fill the board vacancy created by the December, 2007 death of her husband, the late Kenneth A. Hendricks. Her term expires in 2009.
Company officers expressed optimism at the meeting regarding the company’s outlook for the remainder of the year despite economic uncertainties. Rick Bastian, president and CEO, stated, “We continue to develop our capabilities in underserved niche markets. We have been successful in developing needed products and services and maintaining a caring community bank solutions-oriented culture among our associates.”
In the first quarter of 2008 the company reported an increase in net income to $597,000 or 27 cents per fully diluted share, up from $471,000 or 21 cents for the same quarter the year before. Bastian stated that Blackhawk has been able to maintain solid asset quality, despite the credit problems being experienced by the industry. “While there are still a number of economic uncertainties that could negatively impact performance,” said Bastian, “the outlook for the remainder of 2008 is good. We expect to continue reporting quarterly earnings at or near record levels,” he added.
“We are performing while continuing our vigilant efforts to maintain asset quality; provide superior customer service; and offer innovative products and services. Our focus is maximizing customer loyalty and retention by listening to and working closely with our customers. Winning business because of a reputation for service is one of the greatest rewards for a community bank. It inspires us to work even harder,” said Bastian.
“EasyMoney Checking is a good example of an innovative product that serves customers’ needs and also benefits the company,” said Bastian. “Many of our customers aren’t able to maintain large balances, so they appreciate receiving a very attractive return with no minimum balance. With this product, the bank rewards customers for accessing our services electronically, which is both efficient and generates fee income for the bank,” he concluded.
About Blackhawk Bancorp
Blackhawk Bancorp, Inc. is headquartered in Beloit, Wisconsin and is the parent company of Blackhawk Bank, which operates seven banking centers in south central Wisconsin and north Central Illinois, along the US 90 corridor from Belvidere, Ill. to Beloit, Wis. Blackhawk’s banking centers 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 its banking products such as Health Savings Accounts, investment management, trust, estate and succession planning. The bank has received numerous accolades for its work with the fast-growing Hispanic population in its served markets. Further information is available on the Company’s website at http://www.blackhawkbank.com/.
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”; and the inability of third party vendors to perform critical services for the company or its customers.
First Call Analyst:
FCMN Contact:
Source: Blackhawk Bancorp, Inc.
CONTACT: Todd James, CFO, or R. Richard Bastian III, President & CEO,
+1-608-364-8911, both of Blackhawk Bancorp, Inc.; or Woody Wallace of The
Investor Relations Company, +1-312-245-2700, for Blackhawk Bancorp, Inc.