Click Cover to Read Digital Edition

AVAILABLE IN THE APP STORE
iPAD APP
iPHONE APP

UPCOMING EVENTS

 
Card Forum & Expo
April 22-25
Hilton Orlando Bonnet Creek
Orlando, Fla.
 
EMERGE: The Forum on Consumer Financial Services Innovation
June 2-4
Hyatt Regency Century Plaza
Los Angeles
 
Digital Banking Summit
June 2-4
Hyatt Regency Century Plaza
Los Angeles
 
2014 RDC Summit
Sept. 30 - Oct. 2
Las Vegas
 
ATM, Debit & Prepaid Forum
October 19-22
JW Marriott Desert Ridge
Phoenix
 
Money2020
November 2-6
Aria
Las Vegas
More events >  

Share |

Print Friendly and PDF

Blackhawk Bancorp Exits TARP Following Treasury Auction

 

Oct 26 - Blackhawk Bancorp Inc., Beloit, Wis.,  (OTCBB: BHWB) will be exiting the TARP program on the closing of the U.S. Treasury's auction of its preferred stock. The transaction is expected to close on or about Oct. 31, 2012. In the transaction, the U.S. Treasury sold 10,000 shares of Blackhawk Bancorp's fixed-rate cumulative perpetual preferred stock, series B for $910 per share and 500 shares of Blackhawk Bancorp's fixed-rte cumulative perpetual preferred stock, series C for $950 per share.

In March of 2009 the company received $10 million in capital under the U.S. Treasury's voluntary Capital Purchase Program, a part of the Emergency Economic Stabilization Act of 2008, which was designed to provide capital to healthy financial institutions to promote confidence and stabilization in the economy.

"The program worked for us," said Rick Bastian, president and CEO. "It helped a healthy bank like Blackhawk enhance its capital levels giving us the confidence to keep lending when it was most needed by our markets. Blackhawk has grown its loan portfolio by $32.5 million, or 10 percent, from March 31, 2009, the quarter it received the investment, to Sept. 30, 2012. 

In addition to the $9.6 million in proceeds the Treasury will receive on the sale of the securities, they also received $1.9 million in cash dividends, for a total of about $11.5 million on their initial $10 million investment. To date, the Treasury has recovered $267 billion from TARP's bank programs through repayments, dividends, interest, and other income compared to the $245 billion initially invested.

"This was a win-win," said Bastian. "Our communities won with available lending and taxpayers won with a good return on their investment. Further, our performance over this period made our securities attractive to private investors. The TARP program has been a success for assisting healthy banks." 

About Blackhawk Bancorp
Blackhawk Bancorp Inc. is headquartered in Beloit, Wis., 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, Ill., to Beloit, Wis. 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 its banking products such as health savings accounts and investment management.

 


Back