Blackhawk Bancorp : Bank Regulatory Filing - 2020 Q4 FR Y-9C

Current and Prior Years:

Board of Governors of the Federal Reserve System

Total

FR Y-9C

OMB Number: 7100-0128 Approval expires July 31, 2021 Page 1 of 74

Consolidated Financial Statements for

Holding Companies-FRY-9C

Report at the close of business as of the last calendar day of the quarter

This Report is required by law: Section 5(c) of the BHC Act

(12 U.S.C. § 1844(c)), section 10 of Home Owners' Loan Act (HOLA) (12 U.S.C. § 1467a(b)), section 618 of the Dodd-Frank Act (12 U.S.C. § 1850a(c)(1)), section 165 of the Dodd-Frank Act

(12 U.S.C. § 5365), and section 252.153(b)(2) of Regulation YY (12 CFR 252.153(b)(2)).

This report form is to be filed by holding companies with total consolidated assets of $3 billion or more. In addition, holding

companies meeting certain criteria must file this report (FR Y-9C) regardless of size. See page 1 of the general instructions for further information. However, when such holding companies own or control, or are owned or controlled by, other holding companies, only the top-tier holding company must file this report for the consolidated holding company organization. The Federal Reserve may not conduct or sponsor, and an organization (or a person) is not required to respond to, a collection of information unless it displays a currently valid OMB control number.

NOTE: Each holding company's board of directors and senior man-	Date of Report: December 31, 2020
agement are responsible for establishing and maintaining an
effective system of internal control, including controls over the		Month / Date / Year (BHCK 9999)
Consolidated Financial Statements for Holding Companies. The
Consolidated Financial Statements for Holding Companies is to be
prepared in accordance with instructions provided by the Federal
Reserve System. The Consolidated Financial Statements for Holding
Companies must be signed and attested by the Chief Financial
Officer (CFO) of the reporting holding company (or by the individual
performing this equivalent function).
I, the undersigned CFO (or equivalent) of the named holding
company, attest that the Consolidated Financial Statements for
Holding Companies (including the supporting schedules) for this
report date have been prepared in conformance with the instruc-
tions issued by the Federal Reserve System and are true and
correct to the best of my knowledge and belief.

Matthew McDonnell

Printed Name of Chief Financial Officer (or Equivalent) (BHCK C490)

Signature of Chief Financial Officer (or Equivalent) (BHCK H321)

01/22/2021

Date of Signature (MM/DD/CCYY) (BHTX J196)

Blackhawk Bancorp, Inc.

Legal Title of Holding Company (RSSD 9017)

400 Broad Street

(Mailing Address of the Holding Company) Street/P.O. Box (RSSD 9110)

Beloit	WI	53511
City (RSSD 9130)	State (RSSD 9200) Zip Code (RSSD 9220)

								Person to whom questions about this report should be directed:
								Joel Carter VP and Finance Manager
	For Federal Reserve Bank Use Only		Name / Title (BHTX 8901)
	[phone]
	RSSD ID							Area Code / Phone Number (BHTX 8902)
							[phone]
	C.I.			S.F.		Area Code / FAX Number (BHTX 9116)
				[e-mail]
								E-mail Address of Contact (BHTX 4086)
		Holding companies must maintain in their files a manually signed and attested printout of the data submitted.

Public reporting burden for this information collection is estimated to vary from 5 to 1,250 hours per response, with an average of 46.34 hours per response for non-Advanced Approaches holding companines with $5 billion or more and an average of 40.48 hours per response for non-Advanced Approaches holding companies with less than $5 billion in total assets and 47.59 hours for Advanced Approaches holding companies, including time to gather and maintain data in the required form and to review instructions and complete the information collection. Comments regarding this burden estimate or any other aspect of this information collection, including suggestions for reducing the burden, may be sent to Secretary, Board of Governors of the Federal Reserve System, 20th and C Streets, NW, Washington, DC 20551, and to the Office of Management and Budget, Paperwork Reduction Project (7100-0128), Washington, DC 20503.

Printed: January 28, 2021 9:30 AM

Transmission file created on 01/28/2021 at 9:22 AM

Report of Income for Holding Companies

Report all Schedules of the Report of Income on a calendar year-to-date basis.

Schedule HI-Consolidated Income Statement

For Federal Reserve Bank Use Only	FR Y-9C
RSSD Number		Page 2 of 74

S.F.

Dollar Amounts in Thousands	BHCK	Amount
1. Interest income:
a. Interest and fee income on loans:
(1) In domestic offices:
..............................................................................................(a) Loans secured by 1-4 family residential properties	4435	6,289	1.a.(1)(a)
..................................................................................................................(b) All other loans secured by real estate	4436	13,302	1.a.(1)(b)
......................................................................................................................................................(c) All other loans	F821	13,851	1.a.(1)(c)
..................................................................................(2) In foreign offices, Edge and Agreement subsidiaries, and IBFs	4059	0	1.a.(2)
........................................................................................................................b. Income from lease financing receivables	4065	0	1.b.
..................................................................................c. Interest income on balances due from depository institutions (1)	4115	275	1.c.
d. Interest and dividend income on securities:
(1) U.S. Treasury securities and U.S. government agency obligations
....................................................................................................................(excluding mortgage-backed securities)	B488	657	1.d.(1)
......................................................................................................................................(2) Mortgage-backed securities	B489	4,890	1.d.(2)
.....................................................................................................................................................(3) All other securities	4060	2,080	1.d.(3)
..........................................................................................................................e. Interest income from trading assets (2)	4069		1.e.
........................................f. Interest income on federal funds sold and securities purchased under agreements to resell	4020	1	1.f.
.....................................................................................................................................................g. Other interest income	4518	151	1.g.
.....................................................................................................h. Total interest income (sum of items 1.a through 1.g)	4107	41,496	1.h.
2. Interest expense:
a. Interest on deposits:
(1) In domestic offices:
.........................................................................................................................(a) Time deposits of $250,000 or less	HK03	1,060	2.a.(1)(a)
..................................................................................................................(b) Time deposits of more than $250,000	HK04	297	2.a.(1)(b)
.......................................................................................................................................................(c) Other deposits	6761	1,483	2.a.(1)(c)
..................................................................................(2) In foreign offices, Edge and Agreement subsidiaries, and IBFs	4172	0	2.a.(2)
...........................................b. Expense of federal funds purchased and securities sold under agreements to repurchase	4180	2	2.b.
c. Interest on trading liabilities and other borrowed money (2)
..............................................................................................................(excluding subordinated notes and debentures)	4185	624	2.c.
......................................d. Interest on subordinated notes and debentures and on mandatory convertible securities (2)	4397		2.d.
....................................................................................................................................................e. Other interest expense	4398	0	2.e.
.....................................................................................................f. Total interest expense (sum of items 2.a through 2.e)	4073	3,466	2.f.
.............................................................................................................................3. Net interest income (item 1.h minus 2.f)	4074	38,030	3.
.................................................................................................................................4. Provision for loan and lease losses (3)	JJ33	7,600	4.
5. Noninterest income:
......................................................................................................................................a. Income from fiduciary activities	4070	0	5.a.
................................................................................................b. Service charges on deposit accounts in domestic offices	4483	2,958	5.b.
.......................................................................................................................................................c. Trading revenue (2,4)	A220		5.c.

(1) Includes interest income on time certificates of deposit not held for trading.

(2) To be completed by holding companies with $5 billion or more in total assets (Asset-size test is based on the prior year June 30 report date). Income and or expenses pertaining to these items should be reported in the "other" categories 1.g, 2.e, and 5.l, respectively by holding companies with less than $5 billion in total assets.

(3) Institutions that have adopted ASU 2016-13 should report in item 4 the provisions for credit losses for all financial assets that fall within the scope of the standard.

(4) For holding companies required to complete Schedule HI, Memoranda item 9, trading revenue reported in Schedule HI, item 5.c must equal the sum of Memoranda items 9.a through 9.e.

Printed: January 28, 2021 9:30 AM

Transmission file created on 01/28/2021 at 9:22 AM

		FR Y-9C
		Page 3 of 74
Schedule HI-Continued
Dollar Amounts in Thousands
BHCK	Amount
Holding companies with less than $5 billion in total assets should report data items 5.d.(6) and 5.d.(7)
only and leave 5.d.(1) through 5.d.(5) blank.
......................................................................................................5.d.(1) Fees and commissions from securities brokerage	C886			5.d.(1)
...................................................................(2) Investment banking, advisory, and underwriting fees and commissions	C888			5.d.(2)
.................................................................................................................(3) Fees and commissions from annuity sales	C887			5.d.(3)
...............................................................................(4) Underwriting income from insurance and reinsurance activities	C386			5.d.(4)
......................................................................................................................(5) Income from other insurance activities	C387			5.d.(5)
(6) Fees and commissions from securities brokerage, investment banking, advisory, and
...........................................................................................................................underwriting fees and commissions	KX46	759		5.d.(6)
..........................................................................................................................(7) Income from insurance activities (5)	KX47	118		5.d.(7)
............................................................................................................................................e. Venture capital revenue (6)	B491			5.e.
............................................................................................................................................................f. Net servicing fees	B492	(431)		5.f.
..........................................................................................................................................g. Net securitization income (6)	B493			5.g.
h. Not applicable
................................................................................................................i. Net gains (losses) on sales of loans and leases	8560	11,081		5.i.
....................................................................................................j. Net gains (losses) on sales of other real estate owned	8561	64		5.j.
................................................................................................................k. Net gains (losses) on sales of other assets (7)	B496	(1)		5.k.
..........................................................................................................................................l. Other noninterest income (8)	B497	4,628		5.l.
..............................................................................................m. Total noninterest income (sum of items 5.a through 5.l)	4079	19,176		5.m.
...................................................................................................6. a. Realized gains (losses) on held-to-maturity securities	3521	0		6.a.
...................................................................................b. Realized gains (losses) on available-for-sale debt securities	3196	535		6.b.
7. Noninterest expense:
......................................................................................................................................a. Salaries and employee benefits	4135	21,948		7.a.
b. Expenses of premises and fixed assets (net of rental income)
...............................................................................(excluding salaries and employee benefits and mortgage interest)	4217	4,279		7.b.
......................................................................................................................................c. (1) Goodwill impairment losses	C216	0		7.c.(1)
................................................................(2) Amortization expense and impairment losses for other intangible assets	C232	437		7.c.(2)
.......................................................................................................................................d. Other noninterest expense (9)	4092	9,667		7.d.
.............................................................................................e. Total noninterest expense (sum of items 7.a through 7.d)	4093	36,331		7.e.
8. a. Income (loss) before change in net unrealized holding gains (losses) on equity securities
not held for trading, applicable income taxes, and discontinued operations
..........................................................................................(sum of items 3, 5.m, 6.a, 6.b, minus items 4 and 7.e)	HT69	13,810		8.a.
...............................b. Change in net unrealized holding gains (losses) on equity securities not held for trading (10)	HT70	70		8.b.
c. Income (loss) before applicable income taxes and discontinued operations
............................................................................................................................................(sum of items 8.a and 8.b)	4301	13,880		8.c.
...............................................................................................................9. Applicable income taxes (foreign and domestic)	4302	3,033		9.
............................................................................10. Income (loss) before discontinued operations (item 8.c. minus item 9)	4300	10,847		10.
..........................................................................................11. Discontinued operations, net of applicable income taxes (11)	FT28	0		11.
12. Net income (loss) attributable to holding company and noncontrolling
...................................................................................................................(minority) interests (sum of items 10 and 11)	G104	10,847		12.
13. LESS: Net income (loss) attributable to noncontrolling (minority) interests
.............................................................(if net income, report as a positive value; if net loss, report as a negative value)	G103	0		13.
...................................................................14. Net income (loss) attributable to holding company (item 12 minus item 13)	4340	10,847		14.

(5) Includes underwriting income from insurance and reinsurance activities.

(6) To be completed by holding companies with $5 billion or more in total assets (Asset-size test is based on the prior year June 30 report date). Income and or expenses pertaining to these items should be reported in the "other" categories.

(7) Exclude net gains (losses) on sales of trading assets and held-to-maturity and available-for-sale debt securities.

(8) See Schedule HI, Memoranda item 6.

(9) See Schedule HI, Memoranda item 7. (10) Item 8.b is to be completed by all holding companies. See the instructions for this item and the Glossary entry for "Securities

Activities" for further detail on accounting for investments in equity securities. (11) Describe on Schedule HI, Memoranda item 8.

Printed: January 28, 2021 9:30 AM

Transmission file created on 01/28/2021 at 9:22 AM

				FR Y-9C
				Page 4 of 74
Schedule HI-Continued
Memoranda-Continued
		Dollar Amounts in Thousands	BHCK	Amount
Memoranda items 1 and 2 are to be completed by holding companies with $5 billion or more in
total assets.¹
..............................................................................1. Net Interest income (item 3 above) on a fully taxable equivalent basis	4519			M.1.
2. Net income before applicable income taxes, and discontinued operations (item 8.c. above)
.......................................................................................................................................on a fully taxable equivalent basis	4592			M.2.
3. Income on tax-exempt loans and leases to states and political subdivisions in the U.S.
............................................................................................................(included in Schedule HI, items 1.a and 1.b, above)	4313	98		M.3.
4. Income on tax-exempt securities issued by states and political subdivisions in the U.S.
....................................................................................................................(included in Schedule HI, item 1.d.(3), above)	4507	1,451		M.4.
5. Number of full-time equivalent employees at end of current period	BHCK	Number
........................................................................................................................................(round to nearest whole number)	4150	250		M.5.
Memoranda items 6.a through 6.j are to be completed annually on a calendar year-to-date basis in the
December report only by holding companies with less than $5 billion in total assets. Holding
companies with $5 billion or more in total assets should report these items on a quarterly basis.¹
6. Other noninterest income (from Schedule HI, item 5.l, above) (only report amounts greater
than $100,000 that exceed 7 percent of Schedule HI, item 5.l):	BHCK	Amount
....................................................................................................a. Income and fees from the printing and sale of checks	C013	78		M.6.a.
.........................................................................b. Earnings on/increase in value of cash surrender value of life insurance	C014	310		M.6.b.
..............................................................................................c. Income and fees from automated teller machines (ATMs)	C016	204		M.6.c.
....................................................................................................d. Rent and other income from other real estate owned	4042	18		M.6.d.
.......................................................................................................................................................e. Safe deposit box rent	C015	71		M.6.e.
......................................................................................................................f. Bank card and credit card interchange fees	F555	3,828		M.6.f.
...............................................................................................................................g. Income and fees from wire transfers	T047	77		M.6.g.
h.	TEXT
8562		8562	0		M.6.h.
i.	TEXT
8563		8563	0		M.6.i.
j.	TEXT
8564		8564	0		M.6.j.
Memoranda items 7.a through 7.p are to be completed annually on a calendar year-to-date basis in the
December report only by holding companies with less than $5 billion in total assets. Holding
companies with $5 billion or more in total assets shouldreport these items on a quarterly basis.¹
7. Other noninterest expense (from Schedule HI, item 7.d, above) (only report amounts greater
than $100,000 that exceed 7 percent of the sum of Schedule HI, item 7.d):
................................................................................................................................................a. Data processing expenses	C017	2,381		M.7.a.
................................................................................................................................b. Advertising and marketing expenses	0497	282		M.7.b.
...................................................................................................................................................................c. Directors' fees	4136	209		M.7.c.
.....................................................................................................................................d. Printing, stationery, and supplies	C018	378		M.7.d.
.............................................................................................................................................................................e. Postage	8403	242		M.7.e.
...................................................................................................................................................f. Legal fees and expenses	4141	243		M.7.f.
................................................................................................................................g. FDIC deposit insurance assessments	4146	353		M.7.g.
...................................................................................................................................h. Accounting and auditing expenses	F556	359		M.7.h.
....................................................................................................................................i. Consulting and advisory expenses	F557	1,069		M.7.i.
..........................................................................................j. Automated teller machine (ATM) and interchange expenses	F558	1,524		M.7.j.
.........................................................................................................................................k. Telecommunications expenses	F559	577		M.7.k.
....................................................................................................................................l. Other real estate owned expenses	Y923	34		M.7.l.

(1) The asset-size test is based on the total assets reported as of June 30, 2019.

Printed: January 28, 2021 9:30 AM

Transmission file created on 01/28/2021 at 9:22 AM