FORM 10-QSB
                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C.  20549

             [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

               FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2001

                                       OR

             [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                 FOR THE TRANSITION PERIOD FROM ----- TO -----

                         COMMISSION FILE NUMBER 0-18599

                            BLACKHAWK BANCORP, INC.

             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

               WISCONSIN                                 39-1659424
     (STATE OR OTHER JURISDICTION OF                  (I.R.S. EMPLOYER
     INCORPORATION OR ORGANIZATION)                  IDENTIFICATION NO.)
     400 BROAD STREET
     BELOIT, WISCONSIN 53511
     (ADDRESS OF PRINCIPLE EXECUTIVE OFFICES)

                                 (608) 364-8911
              (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
                                 NOT APPLICABLE
              (FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR,
                         IF CHANGED SINCE LAST REPORT)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months,  and (2) has been  subject to such filing  requirements
for the past 90 days.

                         YES   X            NO
                             -----             -----

Indicate the number  of shares outstanding  of each of  the issuer's classes  of
common stock, as of the latest practicable date.

                                                    Outstanding at
          Class of Common Stock                    October 31, 2001
          ---------------------                    ----------------
            $.01 par value                        2,366,418  shares

                                     INDEX

                         PART I - FINANCIAL INFORMATION

                                                                          PAGE
                                                                          ----

ITEM 1.   FINANCIAL STATEMENTS

          Consolidated Condensed Balance Sheets as of
            September 30, 2001 and December 31, 2000                         3

          Consolidated Condensed Statements of Income for the
            Three Months Ended September 30, 2001 and 2000                   4

          Consolidated Condensed Statements of Income for the
            Nine Months Ended September 30, 2001 and 2000                    5

          Consolidated Condensed Statements of Shareholders'
            Equity for the Nine Months Ended September 30, 2001 and 2000     6

          Consolidated Condensed Statements of Cash Flows for the
            Nine Months Ended September 30, 2001 and 2000                  7-8

          Notes to Consolidated Condensed Financial Statements            9-11

ITEM 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
            CONDITION AND RESULTS OF OPERATIONS                          12-17

                          PART II - OTHER INFORMATION

ITEM 6.   A)  EXHIBITS                                                      18

          B)  REPORT ON FORM 8-K                                            19

SIGNATURES                                                                  20

                     BLACKHAWK BANCORP, INC. AND SUBSIDIARY
                     CONSOLIDATED CONDENSED BALANCE SHEETS
                                  (UNAUDITED)

<TABLE>
                                                                  SEPTEMBER 30, 2001  DECEMBER 31, 2000
                                                                  ------------------  -----------------
                                                                          (Dollars in thousands)
<S>                                                                      <C>                 <C>
ASSETS
------
Cash and cash equivalents                                               $ 10,089            $ 13,336
Interest-bearing deposit accounts                                            525                 780
Federal funds sold and other short-term investments                        1,096               2,529
Securities available-for-sale                                             43,421              54,068
Securities held-to-maturity, fair value of $24,472 and $18,530            23,737              18,530
Loans held for sale                                                        1,986                 739
Loans, net of allowance for loan losses of $2,075 and $3,894             216,433             216,926
Federal Home Loan Bank of Chicago Stock                                    2,318               2,200
Bank premises and equipment, net                                           6,785               6,732
Intangible assets                                                          5,216               5,671
Accrued interest receivable                                                2,236               2,481
Other assets                                                               2,390               3,179
                                                                        --------            --------

     Total Assets                                                       $316,232            $327,171
                                                                        --------            --------
                                                                        --------            --------
LIABILITIES AND SHAREHOLDERS' EQUITY
------------------------------------
LIABILITIES:
Deposits:
     Non-interest bearing                                               $ 28,136            $ 28,875
     Interest bearing                                                    205,895             232,068
                                                                        --------            --------
     Total deposits                                                      234,031             260,943
                                                                        --------            --------
Borrowed funds:
     Short-term borrowings                                                 6,603               9,873
     Other borrowings                                                     48,598              30,031
                                                                        --------            --------
     Total borrowed funds                                                 55,201              39,904
                                                                        --------            --------
Accrued interest payable                                                   1,232               1,765
Other liabilities                                                          1,550               1,564
                                                                        --------            --------

     Total Liabilities                                                   292,014             304,176
                                                                        --------            --------

SHAREHOLDERS' EQUITY:
Preferred stock
     1,000,000 shares, $.01 par value per share authorized,
       none issued or outstanding                                             --                  --
Common stock
     10,000,000 shares, $.01 par value per share authorized;
       2,371,398 and 2,347,598 shares issued                                  24                  23
Additional paid-in capital                                                 7,564               7,417
Retained earnings                                                         15,672              15,573
Treasury stock, 6,521 and 10,324 shares, at cost                             (81)               (120)
Accumulated other comprehensive income                                     1,039                 102
                                                                        --------            --------

     Total Shareholders' Equity                                           24,218              22,995
                                                                        --------            --------

     Total Liabilities and Shareholder's Equity                         $316,232            $327,171
                                                                        --------            --------
                                                                        --------            --------
</TABLE>

      See Notes to Unaudited Consolidated Condensed Financial Statements.

                     BLACKHAWK BANCORP, INC. AND SUBSIDIARY
                  CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                                  (UNAUDITED)

<TABLE>
                                                             Three Months Ended September 30,
                                                                2001                2000
                                                               --------            --------
                                                                  (Dollars in Thousands)
<S>                                                              <C>                 <C>
INTEREST INCOME:
     Interest and fees on loans                                 $4,661              $4,578
     Interest on securities:
          Taxable                                                  731                 952
          Exempt from federal income taxes                         198                 144
     Interest on federal funds sold and
       other short-term investments                                 12                   5
     Interest on interest-bearing deposits                           5                  42
                                                                ------              ------
          Total Interest Income                                  5,607               5,721
                                                                ------              ------

INTEREST EXPENSE:
     Interest on deposits                                        2,101               2,372
     Interest on short-term borrowings                              82                 587
     Interest on other borrowings                                  711                 353
                                                                ------              ------
          Total Interest Expense                                 2,894               3,312
                                                                ------              ------
     Net Interest Income                                         2,713               2,409
     Provision for loan losses (Note 3)                            400                  90
                                                                ------              ------
     Net Interest Income After Provision for Loan Losses         2,313               2,319
                                                                ------              ------

OTHER OPERATING INCOME:
     Service charges on deposit accounts                           464                 394
     Gain on sale of mortgage loans                                151                  46
     Gain on sale of securities                                     38                  --
     Brokerage and annuity commissions                              13                  60
     Net gain (loss) on sale of other assets                       (21)                 22
     Other income                                                   93                 133
                                                                ------              ------
          Total Other Operating Income                             738                 655
                                                                ------              ------

OTHER OPERATING EXPENSES:
     Salaries and employee benefits                              1,300               1,237
     Occupancy expense, net                                        184                 157
     Furniture and equipment                                       181                 202
     Data processing                                               184                 190
     Amortization of intangible assets                             124                 138
     Legal and professional fees                                   158                 110
     Office supplies                                                65                  59
     Telephone and telecommunications                               69                  66
     Other operating expenses                                      430                 345
                                                                ------              ------
     Total Other Operating Expenses                              2,695               2,504
                                                                ------              ------

     Income Before Income Taxes                                    356                 470
     Provision for Income Taxes                                     98                 164
                                                                ------              ------
     Net Income                                                 $  258              $  306
                                                                ------              ------
                                                                ------              ------
     Basic Earnings Per Share                                   $ 0.11              $ 0.13
                                                                ------              ------
                                                                ------              ------
     Diluted Earnings Per Share                                 $ 0.11              $ 0.13
                                                                ------              ------
                                                                ------              ------
     Dividends Per Share                                        $ 0.09              $ 0.12
                                                                ------              ------
                                                                ------              ------
</TABLE>

      See Notes to Unaudited Consolidated Condensed Financial Statements.

                     BLACKHAWK BANCORP, INC. AND SUBSIDIARY
                  CONSOLIDATED CONDENSED STATEMENTS OF INCOME
                                  (UNAUDITED)

<TABLE>
                                                            Nine Months Ended September 30,
                                                                2001                2000
                                                              --------            --------
                                                                 (Dollars in Thousands)
<S>                                                              <C>                <C>
INTEREST INCOME:
     Interest and fees on loans                                $14,195             $12,835
     Interest on securities:
          Taxable                                                2,360               2,783
          Exempt from federal income taxes                         561                 415
     Interest on federal funds sold and
       other short-term investments                                 50                  20
     Interest on interest-bearing deposits                          31                 125
                                                               -------             -------
          Total Interest Income                                 17,197              16,178
                                                               -------             -------

INTEREST EXPENSE:
     Interest on deposits                                        6,987               6,828
     Interest on short-term borrowings                             417               1,361
     Interest on other borrowings                                2,081                 874
                                                               -------             -------
          Total Interest Expense                                 9,485               9,063
                                                               -------             -------
     Net Interest Income                                         7,712               7,115
     Provision for loan losses (Note 3)                            675                 270
                                                               -------             -------
     Net Interest Income After Provision for Loan Losses         7,037               6,845
                                                               -------             -------

OTHER OPERATING INCOME:
     Service charges on deposit accounts                         1,288               1,108
     Gain on sale of mortgage loans                                381                  99
     Gain on sale of securities                                    132                  24
     Brokerage and annuity commissions                              96                 201
     Net gain (loss) on sale of other assets                       (17)                 22
     Other income                                                  285                 405
                                                               -------             -------
          Total Other Operating Income                           2,165               1,859
                                                               -------             -------

OTHER OPERATING EXPENSES:
     Salaries and employee benefits                              3,897               3,646
     Occupancy expense, net                                        571                 488
     Furniture and equipment                                       571                 610
     Data processing                                               515                 569
     Amortization of intangible assets                             372                 417
     Legal and professional fees                                   369                 243
     Office supplies                                               214                 174
     Telephone and telecommunications                              216                 188
     Other operating expenses                                    1,225               1,137
                                                               -------             -------
          Total Other Operating Expenses                         7,950               7,472
                                                               -------             -------

     Income Before Income Taxes                                  1,252               1,232
     Provision for Income Taxes                                    376                 413
                                                               -------             -------
     Net Income                                                $   876             $   819
                                                               -------             -------
                                                               -------             -------
     Basic Earnings Per Share                                  $  0.37             $  0.35
                                                               -------             -------
                                                               -------             -------
     Diluted Earnings Per Share                                $  0.37             $  0.34
                                                               -------             -------
                                                               -------             -------
     Dividends Per Share                                       $  0.33             $  0.36
                                                               -------             -------
                                                               -------             -------
</TABLE>

      See Notes to Unaudited Consolidated Condensed Financial Statements.

                     BLACKHAWK BANCORP, INC. AND SUBSIDIARY
           CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY
                                  (UNAUDITED)

<TABLE>
                                                            Nine Months Ended September 30,
                                                                2001                2000
                                                              --------            --------
                                                                 (Dollars in thousands)
<S>                                                              <C>                <C>
Common Stock:
     Balance at beginning of period                            $    23             $    23
     Stock options exercised                                         1                  --
                                                               -------             -------
     Balance at end of period                                       24                  23
                                                               -------             -------

Additional Paid-in Capital:
     Balance at beginning of period                              7,417               7,307
     Stock options exercised                                       147                  53
                                                               -------             -------
     Balance at end of period                                    7,564               7,360
                                                               -------             -------

Retained Earnings:
     Balance at beginning of period                             15,573              16,973
     Net income                                                    876                 819
     Dividends declared on common stock                           (777)               (837)
                                                               -------             -------
     Balance at end of period                                   15,672              16,955
                                                               -------             -------

Treasury Stock, at cost:
     Balance at beginning of period                               (120)               (120)
     Sale of treasury stock                                         39                  --
                                                               -------             -------
     Balance at end of period                                      (81)               (120)
                                                               -------             -------

Accumulated other comprehensive income (loss):
     Balance at beginning of period                                102                (858)
     Other comprehensive income (loss), net of taxes               937                 310
                                                               -------             -------
     Balance at end of period                                    1,039                (548)
                                                               -------             -------

Total Shareholders' Equity                                     $24,218             $23,670
                                                               -------             -------
                                                               -------             -------
</TABLE>

       See Notes to Unaudited Consolidated Condensed Financial Statements.

                     BLACKHAWK BANCORP, INC. AND SUBSIDIARY
                CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                  (UNAUDITED)

<TABLE>
                                                                      Nine Months Ended September 30,
                                                                          2001                2000
                                                                        --------            --------
                                                                          (Dollars in thousands)
<S>                                                                        <C>                <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net Income                                                         $    876            $    819
     Adjustments to reconcile net income to net cash
       provided by (used in) operating activities:
     Provision for loan losses                                               675                 270
     Provision for depreciation and amortization                           1,033               1,098
     Amortization of premiums and (accretion of
       discounts) on Investment securities, net                               47                  28
     Gain on sale of loans held for sale                                    (381)                (99)
     FHLB stock dividends                                                   (111)                 --
     Loss (gain) on sale of property, equipment and OREO                      17                 (22)
     Gain on sale of securities                                             (132)                (24)
     Loans originated for sale                                           (22,325)             (5,779)
     Proceeds from sale of loans held for sale                            21,460               5,950
     Change in assets and liabilities:
          Decrease in other assets                                           412                   6
          (Increase) decrease in accrued interest receivable                 239                (304)
          Increase (decrease) in accrued interest payable                   (534)                204
          Increase in other liabilities                                      115                  46
                                                                        --------            --------
     Net cash provided by operating activities                             1,391               2,193
                                                                        --------            --------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Decrease in federal funds sold, interest-bearing deposits
       And other short-term investments, net                               1,688               1,957
     Proceeds from maturities and calls of
       securities available-for-sale                                      26,093               2,223
     Purchase of securities available-for-sale                           (18,110)            (13,119)
     Proceeds from maturities and calls of
       securities held-to-maturity                                         1,972               3,635
     Purchase of securities held-to-maturity                              (7,234)             (1,954)
     Proceeds from sale of securities available-for-sale                   4,297               4,820
     Loans originated, net of principal collected                         (1,046)            (20,058)
     Proceeds from the sale of property, equipment and OREO                  730                 992
     Purchase of bank premises and equipment                                (756)               (213)
                                                                        --------            --------
     Net cash provided by (used in) investing activities                   7,634             (21,717)
                                                                        --------            --------
</TABLE>

                     BLACKHAWK BANCORP, INC. AND SUBSIDIARY
                CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
                                  (CONTINUED)
                                  (UNAUDITED)

<TABLE>
                                                                      Nine Months Ended September 30,
                                                                          2001                2000
                                                                        --------            --------
                                                                           (Dollars in thousands)
<S>                                                                        <C>                <C>
CASH FLOWS FROM FINANCING ACTIVITIES:
     Stock options exercised                                                 148                  35
     Sale of treasury stock                                                   39                  --
     Net decrease in deposits                                            (26,912)               (469)
     Net increase in borrowings                                           15,298              19,514
     Dividends paid                                                         (845)               (837)
                                                                        --------            --------
     Net cash provided by (used in) financing activities                 (12,272)             18,243
                                                                        --------            --------
     Decrease in cash and cash equivalents                                (3,247)             (1,281)
CASH AND CASH EQUIVALENTS:
     Beginning                                                            13,336              11,994
                                                                        --------            --------
     Ending                                                             $ 10,089            $ 10,713
                                                                        --------            --------
                                                                        --------            --------
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
     Cash payments for:
          Interest                                                      $ 10,019            $  8,859
          Income taxes                                                       108                 332
SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING ACTIVITIES:
     Other assets acquired in settlement of loans                       $    741            $    389
</TABLE>

      See Notes to Unaudited Consolidated Condensed Financial Statements.

                     BLACKHAWK BANCORP, INC. AND SUBSIDIARY
              NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
                               September 30, 2001

Note 1.   General

          The accompanying consolidated  condensed financial statements  conform
          to generally accepted accounting  principles and to general  practices
          within the banking industry.   The more  significant policies used  by
          the Company in preparing and  presenting its financial statements  are
          stated in the Company's Form 10-KSB.

          The effect of  timing differences in  the recognition  of revenue  and
          expense for tax  liability is  not determined  until the  end of  each
          fiscal year.

          In the opinion of Management, the accompanying unaudited  consolidated
          condensed financial statements contain all adjustments (consisting  of
          normal recurring accruals) necessary  to present fairly the  financial
          position of the Corporation as of September 30, 2001, and the  results
          of operations for the three and  nine months ended September 30,  2001
          and 2000.

          The results  of  operations  for  the  three  and  nine  months  ended
          September 30,  2001 and  2000 are  not necessarily  indicative of  the
          results to be expected for the full year.

          Certain reclassifications  have  been  made  to  the  2000  historical
          financial statements to conform to the 2001 presentation.

Note 2.   Non-Performing Loans

          Non-performing loans  includes loans  which have  been categorized  by
          management as  non-accruing  because  collection of  interest  is  not
          assured, and  loans which  are  past-due ninety  days  or more  as  to
          interest  and/or   principal   payments.  The   following   summarizes
          information concerning non-performing loans:

                                                                Sept. 30,
                                                          ---------------------
          (Dollars in Thousands)                            2001         2000
                                                          --------     --------
          Non-accruing loans                               $1,553       $2,004
          Past due 90 days or more and still accruing         940        1,496
                                                           ------       ------
          Total non-performing loans                       $2,493       $3,500
                                                           ------       ------
                                                           ------       ------

          Performing loans classified as impaired            $936       $   --

Note 3.   Allowance For Loan Losses

          A summary  of transactions  in the  allowance for  loan losses  is  as
          follows:

                                                Three Months Ended September 30,
          Dollars in Thousands)                        2001         2000
                                                     --------     --------
          Balance at beginning of period              $2,057       $2,069
          Provision charged to expense                   400           90
          Loans charged off                              394           60
          Recoveries                                      12            9
                                                      ------       ------
          Balance at end of period                    $2,075       $2,108
                                                      ------       ------
                                                      ------       ------

                                                 Nine Months Ended September 30,
          (Dollars in Thousands)                       2001         2000
                                                      ------       ------
          Balance at beginning of period              $3,894       $1,996
          Provision charged to expense                   675          270
          Loans charged off                            2,562          187
          Recoveries                                      68           29
                                                      ------       ------
          Balance at end of period                    $2,075       $2,108
                                                      ------       ------
                                                      ------       ------

Note 4.   Earnings Per Share

          Presented below are  the calculations for  basic and diluted  earnings
          per share:

<TABLE>
                                                                     Three Months Ended             Nine Months Ended
                                                                        September 30,                 September 30,
                                                                     2001           2000           2001           2000
                                                                  ----------     ----------     ----------     ----------
<S>                                                                  <C>            <C>            <C>            <C>
          Basic:
          Net income available to common stockholders             $  258,000     $  306,000     $  876,000     $  819,000
                                                                  ----------     ----------     ----------     ----------
                                                                  ----------     ----------     ----------     ----------
          Weighted average shares outstanding                      2,363,312      2,323,949      2,350,300      2,321,536
                                                                  ----------     ----------     ----------     ----------
                                                                  ----------     ----------     ----------     ----------
          Basic.earnings per share                                $     0.11     $     0.13     $     0.37     $     0.35
                                                                  ----------     ----------     ----------     ----------
                                                                  ----------     ----------     ----------     ----------

          Diluted:
          Net income available to common stockholders             $  258,000     $  306,000     $  876,000     $  819,000
                                                                  ----------     ----------     ----------     ----------
                                                                  ----------     ----------     ----------     ----------
          Weighted average shares outstanding                      2,363,312      2,323,949      2,350,300      2,321,536
          Effect of dilutive stock options outstanding                23,053         58,289         23,053         58,289
                                                                  ----------     ----------     ----------     ----------
          Diluted weighted average shares outstanding              2,386,365      2,382,238      2,373,353      2,379,825
                                                                  ----------     ----------     ----------     ----------
                                                                  ----------     ----------     ----------     ----------
          Diluted earnings per share                              $     0.11     $     0.13     $     0.37     $     0.34
                                                                  ----------     ----------     ----------     ----------
                                                                  ----------     ----------     ----------     ----------
</TABLE>

Note 5.   Recent Accounting Developments

          Business Combinations

          In September  2001, the  Financial Accounting  Standards Board  (FASB)
          issued Statement  of Financial  Accounting Standards  (SFAS) No.  141,
          "Business  Combinations",  and  SFAS  No.  142,  "Goodwill  and  Other
          Intangible Assets."  SFAS  No. 141  supersedes  Accounting  Principles
          Board (APB) Opinion No. 16, "Business Combinations", and SFAS No.  38,
          "Accounting   for    Preacquisition   Contingencies    of    Purchased
          Enterprises." SFAS No. 141 requires the use of the purchase method  of
          accounting for  business combinations  initiated after  September  30,
          2001.   SFAS  No.  142 supersedes  APB  Opinion  No.  17,  "Intangible
          Assets." SFAS No. 142 addresses how intangible assets acquired outside
          of a business combination should be accounted for upon acquisition and
          how goodwill and other intangible assets should be accounted for after
          they have  been initially  recognized.   SFAS No.  142 eliminates  the
          amortization for goodwill and other intangible assets with  indefinite
          lives.  Other intangible assets with  a finite life will be  amortized
          over their useful  life.  Goodwill  and other  intangible assets  with
          indefinite useful lives  shall be  tested for  impairment annually  or
          more frequently if  events or changes  in circumstances indicate  that
          the asset may be impaired.  SFAS No. 142 is effective for fiscal years
          beginning after December 15, 2001.

          The Company's  strategy  over  the past  several  years  has  included
          business combinations  accounted  for under  the  purchase  accounting
          method which created  goodwill upon the  transactions' closings.   The
          Company has  goodwill of  $3.2  million on  its  balance sheet  as  of
          September 30,  2001 which  is  being amortized  over  20 years.    The
          pronouncement will have the effect of eliminating the amortization  of
          this asset and will subject it to periodic impairment analysis.

          Management, at this time, cannot determine the effect that adoption of
          SFAS No. 142 may  have on the financial  statements of the Company  as
          the statement requires a comprehensive review of previous combinations
          accounted for under the purchase accounting method and an analysis  of
          impairment as of the  date of adoption.   The impairment analysis  for
          goodwill and other  intangible assets with  an indefinite useful  life
          has not been  completed.  The  impairment analysis  will be  completed
          within the timelines outlined in SFAS No. 142 which include an initial
          transitional goodwill impairment test to be completed by September 30,
          2002.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL

                      CONDITION AND RESULTS OF OPERATIONS

The purpose  of Management's  discussion and  analysis  is to  provide  relevant
information regarding the  Registrant's financial condition  and its results  of
operations.  The information included herein should be read in conjunction  with
the consolidated condensed balance sheets as of September 30, 2001 and  December
31, 2000  and the  consolidated condensed  statements of  income for  the  three
months and nine months ended September 30,  2001 and 2000.  This information  is
not meant to be a substitute  for the consolidated condensed balance sheets  and
income statements.

                             RESULTS OF OPERATIONS

Net income for the three and nine  months ended September 30, 2001 was  $258,000
and $876,000, respectively, compared  to $306,000 and  $819,000 for the  similar
periods in 2000.  The discussion that follows will provide information about the
various areas  of  income  and  expense  that  resulted  in  the  aforementioned
financial performance.

                        THREE MONTHS ENDED SEPTEMBER 30

For the three months  ended September 30, 2001,  interest income was  $5,607,000
compared to $5,721,000 for the same period in 2000.  This decrease of  $114,000,
or 2.0%, was  the result of  increased interest and  fees on  loans of  $83,000,
offset by a decrease  in interest on  securities of $167,000  and a decrease  of
$30,000 on short-term investments and deposits with banks in the aggregate.

Interest and fees  on loans increased  1.8% to $4,661,000  for the three  months
ended September 30,  2001 compared  to $4,578,000 in  the same  period of  2000.
Average loans outstanding during the three months ended September 30, 2001  were
$219.8 million, representing a $12.5 million, or 6.0%, increase over 2000 levels
for the similar period.  Partially offsetting the  increase in average  balances
was a decline in loan yields to 8.41%  for the three months ended September  30,
2001 from 8.76% for the same period in 2000.

Investment income on  taxable securities and  FHLB stock for  the quarter  ended
September 30, 2001 decreased $221,000 to $731,000, compared to $952,000 for  the
same period in  2000, a decrease  of 23.2%.   The decrease was  the result of  a
decrease in  volume that  was partially  offset by  a portfolio  yield  increase
during the 2001 quarter as compared to the 2000 quarter.  Income from tax-exempt
securities increased to $198,000 for the  three months ended September 30,  2001
from $144,000.  This increase was due to increased volumes and improved yields.

Interest on interest-bearing deposits, federal  funds sold and other  short-term
investments decreased  to  $17,000  in aggregate  for  the  three  months  ended
September 30, 2001, from $47,000 for the 2000 period.

Interest paid on  deposits decreased 11.4%  to $2,101,000 for  the three  months
ended September 30, 2001, from $2,372,000  for the three months ended  September
30, 2000.

Interest on  short-term borrowings  decreased to  $82,000 for  the three  months
ended September  30,  2001  from  $587,000 in  2000,  a  decrease  of  $505,000.
Interest on  long-term borrowings  increased to  $711,000 for  the three  months
ended September 30, 2001, from $353,000 for the same period in 2000.  Short-term
borrowings, including repurchase agreements, fed  funds purchased, an open  line
of credit with the  Federal Home Loan Bank  of Chicago ("FHLB"),  and a line  of
credit with a  third party  commercial bank,  decreased as  the Company  reduced
reliance on these types of borrowings by converting portions to longer  maturity
term debt earlier in  the year.   Costs also declined  with these borrowings  as
short-term rates continued to  fall during the quarter.   The increase in  long-
term borrowing costs was driven by volume as average funding costs declined from
the prior year period.

The provision for loan losses was  $400,000 for the quarter ended September  30,
2001 as compared to $90,000 for the same period in 2000. Net charge offs for the
quarter ended September 30, 2001 were $382,000 compared to $51,000 for the  same
period in  2000.  Higher net  charge  offs and  loan  growth in  commercial  and
installment lending areas resulted in a larger loan loss provision. The  Company
is also  affected  by the  manufacturing  economic  slowdown, which  has  had  a
negative impact upon the local economies in markets served by the Company.    It
is management's opinion that this amount represents an adequate provision.

Total non-interest income  increased to $738,000,  from $655,000  for the  three
months ended September 30, 2001 and 2000, respectively.  The primary reason  for
the increase was the $105,000 increase in the gain on the sale of mortgage loans
during the third quarter of 2001 as compared to the 2000 quarter.  Lower overall
interest rates in the mortgage market contributed to a shift towards fixed  rate
loans in  the purchase  money  mortgage market  and  a significant  increase  in
refinancing activity.  With  the Company's policy of  marketing most fixed  rate
mortgages to the  secondary market,  gains on  mortgage loans  intended for  the
secondary market increased as  sales volumes increased to  $7.8 million for  the
quarter ended September 30, 2001 from $2.5 million for the same period in  2000.
The Company recognized  gains on  the sales of  investments of  $38,000 for  the
three months ended September 30, 2001.  No gains were recognized in the  similar
period in  the prior  fiscal year.  An additional  increase in  deposit  service
charges  was  substantially  offset  by  a  decline  in  Brokerage  and  Annuity
Commissions of $47,000  or 78.3% and  a decline in  mortgage servicing  revenues
which resulted from the sale of the majority of the Company's mortgage servicing
portfolio in the second half of 2000.

For the  three  months ended  September  30, 2001,  total  non-interest  expense
increased to $2,695,000 from $2,504,000 for the same period in 2000.   Exclusive
of personnel costs,  other non-interest expenses  increased $128,000, or  10.1%.
Salaries and  employee benefits  increased $63,000,  or  5.1%, during  the  2001
quarter as variable compensation  for mortgage production  increased and as  the
Company added  staff in  the loan  operations  area.   Increases in  other  non-
interest expense reflected higher costs to collect delinquent loans and  service
foreclosed assets  and  higher  legal  and  professional  fees  as  the  Company
continued to pursue its claim against a former data processing service provider.

Income taxes decreased  to $98,000, from  $164,000, for  the three-month  period
ending September 30, 2001. The effective  tax rates were 27.5% versus 34.9%  for
the 2001 and 2000 second quarters, respectively. The decreased total income  tax
expense resulted primarily from more tax advantaged municipal investments in the
third quarter of 2001  compared to 2000  and the lower  level of pre-tax  profit
reported in  the three  months ended  September 30,  2001 compared  to the  same
period in 2000.

                         NINE MONTHS ENDED SEPTEMBER 30

For the nine months ended September 30, 2001, interest income was $17.2  million
compared to $16.2 million for the  same period in 2000.   This increase of  $1.0
million was the result of increased interest and fees on loans of $1.4  million.
Partially offsetting the loan  income was a slight  net decrease in interest  on
securities, short-term investments and interest on deposits with banks.

Interest and fees on loans increased 10.6% to $14.2 million for the nine  months
ended September 30, 2001, compared to $12.8 million in the same period of  2000.
Similar to the three-month period ended September 30, 2001, increased volume was
the most  significant factor  for  the increase.    Offsetting the  increase  in
volume, yields were lower than 2000  levels for the nine months ended  September
30, 2001.   Investment  income on taxable securities  for the nine months  ended
September 30, 2001  decreased $0.4  million to  $2.4 million,  compared to  $2.8
million for the same period in 2000.   The decrease was primarily the result  of
lower balances  of  investment securities  held  during the  nine  months  ended
September 30, 2001.  Income from tax-exempt securities increased to $561,000 for
the nine  months ended  September 30,  2001, from  $415,000 for  the prior  year
period.  This increase was due primarily to increased volumes.

Interest paid on deposits increased $0.2  million to $7.0 million, or 2.3%,  for
the nine months ended September 30, 2001, from $6.8 million for the nine  months
ended September  30,  2000.   The  increase was  the  result of  higher  average
interest-bearing deposit balances in  the 2001 period. Average  interest-bearing
deposit balances  increased  from  $202.1 million  for  the  nine  months  ended
September 30, 2000 to $209.0  for the nine months  ended September 30, 2001,  an
increase of 3.4%.

Interest on short-term borrowings decreased to $0.4 million for the nine  months
September 30, 2001, from $1.4 million in 2000.  Interest on long-term borrowings
increased to $2.1  million for the  nine months ended  September 30, 2001,  from
$0.9 million for the nine months ended September  30, 2000.  Early in 2001,  the
Company restructured a  substantial portion  of its  short-term borrowings  into
termed borrowings.  As  a  result,  volumes  have  increased  in  the  long-term
borrowings, while they have decreased in the short-term borrowings.

The provision for loan losses was  $675,000 for the nine months ended  September
30, 2001, as compared to $270,000 for the  same period in 2000. Net charge  offs
for the  nine  months ended  September  30,  2001 were  $2,494,000  compared  to
$158,000 for the same period in 2000. Higher net charge offs and loan growth  in
commercial and  installment  lending  areas  resulted  in  a  larger  loan  loss
provision.    Also  influencing  the  level  of  loan  loss  provision  is   the
manufacturing sector slowdown, which  has had a negative  impact upon the  local
economies in markets served by the Company. It is management's opinion that this
amount represents an adequate provision.

Total non-interest income increased 16.5% to $2.2 million, from $1.9 million for
the nine months ended  September 30, 2001 and  2000, respectively.  The  primary
reason for the increase  was the $282,000 increase  in the gain  on the sale  of
mortgage loans during the nine months  ended September 30, 2001, as compared  to
the same period in  2000.  The increase  was driven by  lower mortgage rates  as
discussed previously.  Increases in service charges on deposit accounts and  the
gain on  sale of  securities were  nearly offset  by a  decline of  $105,000  in
brokerage and annuity  commissions and other  income.   Deposit service  charges
have benefited from  pricing structure changes  while brokerage  fees have  been
negatively impacted  by  uncertainties  that have  developed  in  the  financial
markets.   Other income  decreased primarily  as a  result of  the sale  of  the
majority of the bank's serviced loan portfolio in the second half of 2000.

Total non-interest expense increased to $8.0  million for the nine months  ended
September 30, 2001,  from $7.5 million  for the comparable  period in 2000.  The
$478,000, or 6.4%, increase was predominantly the result of a $251,000  increase
in personnel costs for  the same reasons as  the quarter-to-date increase  noted
previously. Additional significant increases occurred in legal and  professional
fees due to the Company's lawsuit against a former data processing provider  and
in loan  expenses as  the  Company collects  on  problem credits  and  maintains
foreclosed assets.

Income taxes decreased  to $376,000, from  $413,000, for  the nine-month  period
ending September 30, 2001. The effective  tax rates were 30.0% versus 33.5%  for
the nine months ended September 30,  2001 and 2000, respectively. The  decreased
total income tax expense resulted primarily  from more tax advantaged  municipal
investments in the nine months ended September 30, 2001 compared to the  similar
period in 2000.

                        ANALYSIS OF FINANCIAL CONDITION

This analysis of the Company's financial  condition compares September 30,  2001
to the Company's prior fiscal  year end, December 31,  2000.  Total assets  were
$316.2 million, as compared  to $327.2 million  as of December  31, 2000.   This
represents a decrease of 3.3%.

Total investments, including securities held-to-maturity, securities  available-
for-sale, Federal Home  Loan Bank  Stock, fed  funds sold  and other  short-term
investments, were $70.6 million as of  September 30, 2001, as compared to  $77.3
million as of December 31, 2000.

Net portfolio loans totaled $216.4 million on September 30, 2001, as compared to
$216.9 million on December 31, 2000, a decrease of $0.5 million. The Company saw
increases in the average balances of Rental and Commercial Real Estate Loans  to
$56.6 million for  the nine months  ended September 30,  2001 compared to  $29.6
million for the same period in 2000 and Construction and Land Development  Loans
which increased 311.2 % to $7.5 million for the nine months ended September  30,
2001. The average balance of Commercial  loans decreased 18.7% to $37.5  million
for the nine months  ended September 30,  2001 from $46.1  million for the  same
period in 2000.

The allowance for  loan losses  decreased to $2.1  million as  of September  30,
2001, as compared to $3.9 million as of  December 31, 2000. As of September  30,
2001, non-performing  loans  were  $2.5 million  compared  to  $4.2  million  at
December 31,  2000.   During  the  second quarter,  the  Company charged  off  a
commercial real estate loan with a balance of $1.95 million due to the continued
deterioration of the borrowers financial condition and the resulting decline  in
the realizable value of the collateral.  Management believes that the  allowance
is adequate at this time.

Net bank premises  and equipment  totaled $6.8  million at  September 30,  2001,
compared to $6.7 million at December 31, 2000. The increase occurred as  capital
expenditures of $0.8 million, primarily related to the recent system conversion,
exceeded the period's depreciation provision of $0.6 million.

Total deposits as of September 30, 2001 were $234.0 million, a decline of 10.3%,
compared to $260.9 million as of December 31, 2000. Several commercial customers
have historically increased their deposit balances at year-end, which  accounted
for the majority of the total decline in deposits from December 31, 2000 levels.
Excluding short-term  deposits  held at  December  31, 2000  of  $25.3  million,
interest-bearing deposits decreased $0.9 million to $205.9 million. Non-interest
bearing deposits  also decreased  to $28.1  million, from  $28.9 million  as  of
December 31, 2000.

Short-term borrowings, fed funds  purchased and repurchase agreements  decreased
to $6.6 million at September 30, 2001, from $9.9 million as of year-end.   Other
borrowings, consisting  of  debt  incurred,  in  part,  to  complete  the  First
Financial acquisition in 1998 and term advances from the FHLB were $48.6 million
at September 30, 2001, up from $30.0 million at year end.  These sources of non-
deposit  funding  were  utilized  to  replace  the  large  year-end   short-term
commercial deposits.  The use of FHLB advances in the future will depend on  the
Company's need for funds and the rates at which they may be obtained.

The company continues  to maintain  a well-capitalized  position. The  following
table shows three different measurements as  of September 30, 2001 and  December
31, 2000, and the regulatory requirement, if any. The increases in the  Leverage
Capital Ratio  and Tier  I  Capital to  Risk-Based  Assets Ratio  are  generally
attributable to the appreciation  of $937,000 on Securities  available-for-sale.
The decline in the Total Capital to Risk-Weighted Assets Ratio was predominantly
due to the decline  in Tier 2  capital resulting from  the $1.95 million  dollar
charge-off, which  reduced the  allowance for  loan loss  includable in  Tier  2
capital

                                   SEPT. 30,     DECEMBER 31,    REGULATORY
                                      2001           2000       REQUIREMENTS
                                   -----------------------------------------
Leverage capital ratio               5.83%          5.60%          4.00%

Tier I capital as a percent
  of risk-based assets               8.38%          8.30%          4.00%

Total capital as a percent
   of risk-based assets              9.33%          9.60%          8.00%

Liquidity, as it relates to the subsidiary bank, is a measure of its ability  to
fund loans and withdrawals of deposits  in a cost-effective manner.  The  Bank's
principal sources of funds are  deposits, scheduled amortization and  prepayment
of loan principal, maturities of investment securities, income from  operations,
and short-term borrowings.   Additional  sources include  purchasing fed  funds,
sale of securities, sale of loans, borrowing from both the Federal Reserve  Bank
and Federal Home Loan Bank,  and dividends paid by  Nevahawk to the Bank.  Under
present law, accumulated earnings could be paid as dividends without incurring a
tax liability.

The liquidity needs of the Company generally consists of payment of dividends to
its shareholders, payments of  principal and interest on  borrowed funds, and  a
limited amount of expenses. The sources  of funds to provide this liquidity  are
income from investments, maturities of  investments, cash balances, issuance  of
capital and  dividends  from its  subsidiary  bank.   Certain  restrictions  are
imposed upon the Bank, which could limit its ability to pay dividends if it  did
not have net earnings or adequate capital in the future.  The Company  maintains
adequate liquidity to pay its expenses.

Off-balance sheet  items  consist  of credit  card  lines  of  credit,  mortgage
commitments, letters  of credit  and  other commitments  totaling  approximately
$27.9 million as  of September  30, 2001.   This  compares to  $34.0 million  at
December  31,  2000.    The  Bank  has  historically  funded  off-balance  sheet
commitments with its primary sources of  funds, and management anticipates  that
this will continue.

The Company's consolidated assets include a $271,000 receivable that relates  to
an improper charge made by the Company's former data processing service provider
("Provider") to the Company's check clearing account maintained with the Federal
Home Loan Bank of Chicago. Upon discovery of the Provider's error and  following
the Provider's initial acknowledgement of that error, the Company worked closely
with the Provider to attempt to  recover the amount improperly charged.   During
the third quarter of 2000, the Provider notified the Company that it was  unable
to pursue the matter further and that  the Provider did not intend to  indemnify
the Company on account of this error.

In response, the  Company filed  a complaint in  the Circuit  Court of  Waukesha
County, Wisconsin  on August  18, 2000,  seeking to  recover the  amount of  the
improper charge from the Provider.  While the Company believes it is entitled to
recovery, it can  provide no assurance  that it will  ultimately prevail in  the
litigation. Moreover, the Company will incur costs and legal fees in  connection
with its pursuit of this matter, and it may be unable to recover those costs and
fees.   The  potential amount  of  those costs  and  fees depends  on  how  this
litigation develops and ultimately is resolved,  and the Company cannot  predict
that amount with certainty at this time.

Given the lack of significant movement toward a resolution of this matter in the
final quarter of 2000, and pursuant to the application of regulatory  guidelines
and principles  under these  circumstances, the  Company wrote  this  contingent
asset down approximately 50% to the current level of $271,000.  In the  unlikely
event that  the  Company is  unsuccessful  in  recovering any  portion  of  this
improper charge,  the Company  would  be required  to  write off  the  remaining
$271,000 balance  of this  contingent asset  through  a further  charge  against
earnings in the period in which  the receivable is deemed uncollectable.   Legal
costs and fees incurred in connection  with these proceedings are being  charged
against earnings as incurred.

PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

The matters discussed in this report, including expectations regarding  interest
income, interest expense,  and net interest  margin, operating  results and  net
income are forward-looking statements that involve risks and uncertainties.  The
assumptions and risk factors that may cause actual results to differ  materially
include but are not limited to,  changes in interest rates  or in the volume  of
earning assets and liabilities, increases in non-performing or delinquent loans,
increased competition,  changes  in  the volume  of  loans  originated  for  the
secondary market  and changes  in the  volume  sales of  non-deposit  investment
products by the Company's brokerage operation,  as well as those described  from
time to time in the Company's SEC filings.

                                    PART II
                                    -------

                               OTHER INFORMATION

ITEM 6.   A)  EXHIBITS

          See Exhibit Index following the signature  page in this report,  which
          is incorporated herein by this reference.

          B) REPORT ON FORM 8-K

          There was one report on Form  8-K filed during the three months  ended
          September 30, 2001.

          The report dated September  27, 2001 detailed  the resignation of  the
          Company's Chief Financial Officer, Keith D. Hill. effective October 5,
          2001.

                                   SIGNATURES

Pursuant to  the  requirements of  the  Securities  Exchange Act  of  1934,  the
registrant has  duly caused  this report  to  be signed  on  its behalf  by  the
undersigned thereunto duly authorized.

                                  Blackhawk Bancorp, Inc.
                                  --------------------------------------
                                  (Registrant)


Date: November 9, 2001            /s/ Dennis M. Conerton
                                  --------------------------------------
                                  Dennis M. Conerton
                                  Chairman and Chief Executive Officer
                                  Interim Chief Financial and Accounting Officer

                            BLACKHAWK BANCORP, INC.

                               INDEX TO EXHIBITS

                                      Incorporated               Filed
Exhibit                               Herein By                  Here-     Page
Number      Description               Reference To:              with      No.
------      -----------               -------------              ----      ---

4.1         Amended and               Exhibit 3.1 to
            restated Articles         Amendment No. 1 to
            of Incorporation          Registrant's
            of the Registrant         Registration
                                      Statement on Form
                                      S-1 (Reg. No.
                                      33-32351)

4.2         By-laws of Regis-         Exhibit 3.2 to
            trant as amended          Amendment No. 1 to
                                      Registrant's
                                      Registration
                                      Statement on Form
                                      S-1 (Reg. No.
                                      33-32351)

4.3         Plan of Conversion        Exhibit 1.2 to
            Beloit Savings            Amendment No. 1 to
            Bank as amended           Registrant's
                                      Registration
                                      Statement on Form
                                      S-1 (Reg. No.
                                      33-32351)