County Bancorp, Inc. (the “Company”; Nasdaq: ICBK), the holding
company of Investors Community Bank (the “Bank”), an agricultural
and commercial community bank headquartered in Manitowoc,
Wisconsin, reported net income of $5.7 million, or $0.82 diluted
earnings per share, for the third quarter of 2019, compared to net
income of $3.7 million, or $0.53 diluted earnings per share, for
the second quarter of 2019 and $3.5 million, or $0.50 diluted
earnings per share, for the third quarter of 2018. This
represents an annualized return on average assets of 1.57% for the
three months ended September 30, 2019, compared to 0.94% for the
three months ended September 30, 2018. The annualized return
on average assets for the nine months ended September 30, 2019 was
1.19% compared to 1.04% for the same period of 2018. Third
quarter earnings were largely impacted by a credit to provision for
loan losses of $1.2 million for third quarter of 2019 compared to a
$0.9 million provision expense for the second quarter of 2019, and
a $1.0 million provision expense for the third quarter of 2018.
“We are very pleased with the improvement we
have seen in our credit portfolio this quarter,” stated Tim
Schneider, President of the Company and CEO of the Bank. “We
continue to see an improved milk price environment: the 12-month
forward looking average for class III milk increased from $15.88 to
$17.12 per hundredweight on the Chicago Mercantile Exchange from
December 31, 2018 to September 30, 2019. These trends are
encouraging, but still have work to do to continue to improve our
asset quality.”
Schneider continued, “As previously announced,
we are still committed to reducing our wholesale funding. We
were able to make significant progress this quarter and
year-over-year, primarily through the additional liquidity from
selling loan participations, which has also led to solid growth in
our loan servicing income. We are also very pleased with our client
deposit growth year-over-year and during the quarter.”
Loans and Total Assets
Total assets at September 30, 2019 were $1.4
billion, a decrease of $69.7 million, or 4.7%, and a decrease of
$100.0 million, or 6.6%, over total assets as of June 30, 2019 and
September 30, 2018, respectively. Total loans were $1.1
billion at September 30, 2019, which represents a $67.0 million, or
5.8%, decrease over total loans at June 30, 2019, and a decrease of
$122.2 million, or 10.2%, over total loans at September 30,
2018.
The decrease in total loans and assets was the
result of our continued focus on reducing loans on our balance
sheet through the sale of loan participations during 2019.
Participated loans that the Company continued to service were
$736.8 million at September 30, 2019, which was an increase of
$41.2 million, or 5.9%, and $91.9 million, or 14.3%, over
participated loans that the Company serviced at June 30, 2019 and
September 30, 2018, respectively. By increasing the amount of
loans participated, the Company is reducing credit risk from its
balance sheet and increasing non-interest revenue streams.
Deposits
Total deposits at September 30, 2019 were $1.1
billion, a decrease of $62.4 million, or 5.2%, and a decrease of
$66.0 million, or 5.5%, over total deposits as of June 30, 2019 and
September 30, 2018, respectively. Despite the decline in
total deposits, client deposits (demand deposits, money market
accounts, and certificates of deposit) increased $19.1 million, or
2.4%, since June 30, 2019, and increased $100.2 million, or 13.9%,
since September 30, 2018.
Due to the increases in loan participations and
client deposit growth, the Company was able to further decrease its
reliance on brokered deposits and national certificates of deposit
to $324.5 million at September 30, 2019. This represents a
decrease of $81.5 million, or 20.1%, from June 30, 2019, and a
decrease of $166.2 million, or 33.9%, from September 30,
2018.
During the third quarter of 2019, the Company
continued to pay off portions of its FHLB borrowings. At
September 30, 2019, borrowings from the FHLB totaled $44.4 million,
which was a decrease of $15.0 million, or 25.3%, from June 30,
2019, and a decrease of $58.0 million, or 56.6%, from September 30,
2018.
Net Interest Income and
Margin
Net interest income was $10.3 million for the
three months ended September 30, 2019, which was a $0.1 million, or
1.7%, decrease from the three months ended June 30, 2019, and a
$0.4 million, or 3.3%, decrease from the three months ended
September 30, 2018. The decrease in net interest income
quarter-over-quarter and year-over-year was the result of a lower
average loan balance due to loan payoffs and the increase in loan
participations discussed above.
Net interest margin was 2.95% for the three
months ended September 30, 2019, which was an increase from 2.92%
for the three months ended June 30, 2019, and an increase from
2.89% for the three months ended September 30, 2018. The
increase in net interest margin over the linked quarter was
primarily due to a decline in average loans from loan participation
sales that took place primarily the last half of the quarter.
Year-over-year third quarter net interest margin increased by six
basis points primarily due to a 32 basis point increase in loan
yields, which was partially offset by a 29 basis point increase in
cost of funds.
|
|
|
|
For the Three Months Ended |
|
|
September 30, 2019 |
|
|
June 30, 2019 |
|
|
September 30, 2018 |
|
|
AverageBalance (1) |
|
|
Income/Expense |
|
|
Yields/Rates |
|
|
AverageBalance (1) |
|
|
Income/Expense |
|
|
Yields/Rates |
|
|
AverageBalance (1) |
|
|
Income/Expense |
|
|
Yields/Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
159,091 |
|
|
$ |
1,117 |
|
|
|
2.81 |
% |
|
$ |
176,237 |
|
|
$ |
1,259 |
|
|
|
2.86 |
% |
|
$ |
189,448 |
|
|
$ |
1,289 |
|
|
|
2.72 |
% |
Loans (2) |
|
1,126,243 |
|
|
|
15,030 |
|
|
|
5.34 |
% |
|
|
1,177,071 |
|
|
|
15,484 |
|
|
|
5.26 |
% |
|
|
1,204,122 |
|
|
|
15,113 |
|
|
|
5.02 |
% |
Interest bearing deposits due from other banks |
|
104,253 |
|
|
|
612 |
|
|
|
2.35 |
% |
|
|
73,769 |
|
|
|
465 |
|
|
|
2.52 |
% |
|
|
62,560 |
|
|
|
249 |
|
|
|
1.59 |
% |
Total interest-earning assets |
$ |
1,389,587 |
|
|
$ |
16,759 |
|
|
|
4.82 |
% |
|
$ |
1,427,077 |
|
|
$ |
17,208 |
|
|
|
4.82 |
% |
|
$ |
1,456,130 |
|
|
$ |
16,651 |
|
|
|
4.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses |
|
(16,209 |
) |
|
|
|
|
|
|
|
|
|
|
(17,782 |
) |
|
|
|
|
|
|
|
|
|
|
(15,445 |
) |
|
|
|
|
|
|
|
|
Other assets |
|
78,664 |
|
|
|
|
|
|
|
|
|
|
|
76,806 |
|
|
|
|
|
|
|
|
|
|
|
58,921 |
|
|
|
|
|
|
|
|
|
Total assets |
$ |
1,452,042 |
|
|
|
|
|
|
|
|
|
|
$ |
1,486,101 |
|
|
|
|
|
|
|
|
|
|
$ |
1,499,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW, money market, interest checking |
$ |
326,592 |
|
|
$ |
1,276 |
|
|
|
1.56 |
% |
|
$ |
315,940 |
|
|
$ |
1,316 |
|
|
|
1.67 |
% |
|
$ |
276,468 |
|
|
$ |
907 |
|
|
|
1.31 |
% |
Time deposits |
|
745,032 |
|
|
|
4,298 |
|
|
|
2.31 |
% |
|
|
770,554 |
|
|
|
4,363 |
|
|
|
2.26 |
% |
|
|
830,168 |
|
|
|
4,073 |
|
|
|
1.96 |
% |
Total interest-bearing deposits |
$ |
1,071,624 |
|
|
$ |
5,574 |
|
|
|
2.08 |
% |
|
$ |
1,086,494 |
|
|
$ |
5,679 |
|
|
|
2.09 |
% |
|
$ |
1,106,636 |
|
|
$ |
4,980 |
|
|
|
1.80 |
% |
Other borrowings |
|
804 |
|
|
|
9 |
|
|
|
4.60 |
% |
|
|
1,204 |
|
|
|
13 |
|
|
|
4.47 |
% |
|
|
839 |
|
|
|
10 |
|
|
|
4.61 |
% |
FHLB advances |
|
48,857 |
|
|
|
237 |
|
|
|
1.94 |
% |
|
|
78,653 |
|
|
|
401 |
|
|
|
2.04 |
% |
|
|
92,443 |
|
|
|
401 |
|
|
|
1.74 |
% |
Junior subordinated debentures |
|
44,800 |
|
|
|
687 |
|
|
|
6.14 |
% |
|
|
44,762 |
|
|
|
683 |
|
|
|
6.11 |
% |
|
|
44,659 |
|
|
|
656 |
|
|
|
5.88 |
% |
Total interest-bearing liabilities |
$ |
1,166,085 |
|
|
$ |
6,507 |
|
|
|
2.23 |
% |
|
$ |
1,211,113 |
|
|
|
6,776 |
|
|
|
2.24 |
% |
|
$ |
1,244,577 |
|
|
$ |
6,047 |
|
|
|
1.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
105,578 |
|
|
|
|
|
|
|
|
|
|
|
102,432 |
|
|
|
|
|
|
|
|
|
|
|
97,947 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
14,801 |
|
|
|
|
|
|
|
|
|
|
|
12,154 |
|
|
|
|
|
|
|
|
|
|
|
9,136 |
|
|
|
|
|
|
|
|
|
Total liabilities |
$ |
1,286,464 |
|
|
|
|
|
|
|
|
|
|
$ |
1,325,699 |
|
|
|
|
|
|
|
|
|
|
$ |
1,351,660 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
165,578 |
|
|
|
|
|
|
|
|
|
|
|
160,402 |
|
|
|
|
|
|
|
|
|
|
|
147,946 |
|
|
|
|
|
|
|
|
|
Total liabilities and
equity |
$ |
1,452,042 |
|
|
|
|
|
|
|
|
|
|
$ |
1,486,101 |
|
|
|
|
|
|
|
|
|
|
$ |
1,499,606 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
10,252 |
|
|
|
|
|
|
|
|
|
|
$ |
10,432 |
|
|
|
|
|
|
|
|
|
|
$ |
10,604 |
|
|
|
|
|
Interest rate spread (3) |
|
|
|
|
|
|
|
|
|
2.59 |
% |
|
|
|
|
|
|
|
|
|
|
2.58 |
% |
|
|
|
|
|
|
|
|
|
|
2.63 |
% |
Net interest margin (4) |
|
|
|
|
|
|
|
|
|
2.95 |
% |
|
|
|
|
|
|
|
|
|
|
2.92 |
% |
|
|
|
|
|
|
|
|
|
|
2.89 |
% |
Ratio of interest-earning
assets to interest-bearing liabilities |
|
1.19 |
|
|
|
|
|
|
|
|
|
|
|
1.18 |
|
|
|
|
|
|
|
|
|
|
|
1.17 |
|
|
|
|
|
|
|
|
|
|
(1) Average balances are calculated on amortized cost. |
(2) Includes loan fee income, nonaccruing loan balances, and
interest received on such loans. |
(3) Interest rate spread represents the difference between
the yield on average interest-earning assets and the cost of
average interest-bearing liabilities. |
(4) Net interest margin represents net interest income
divided by average total interest-earning assets. |
|
Net interest income for the nine months ended September 30, 2019
was $31.2 million which was the same as to the nine month ended
September 30, 2018, primarily as a result of the combination of a
higher average loan yield on a smaller average balance of the loan
portfolio.
For the nine months ended September 30, 2019,
net interest margin improved slightly to 2.94% from 2.92% for the
nine months ended September 30, 2018, primarily as a result of a 40
basis point increase in loan yields that was partially offset by a
46 basis point increase in cost of funds.
Non-Interest Income and Expense
Non-interest income for the three months ended
September 30, 2019 increased by $1.1 million, or 39.7%, to $4.0
million compared to the three months ended June 30, 2019, which was
primarily the result of an increase of $1.4 million of loan
servicing right origination due to the $41.2 million in loans that
were sold or participated during the third quarter. The
Company also continued to reduce the valuation allowance on its
loan servicing rights portfolio which resulted in an additional
servicing rights income of $0.2 million.
Non-interest income for the three months ended
September 30, 2019 increased $1.9 million, or 87.0%, compared to
$2.2 million for the three months ended September 30, 2018.
The year-over-year increase was primarily due to the increase in
loan participations discussed above.
|
|
|
|
|
|
For the Three Months Ended |
|
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
|
December 31,2018 |
|
|
September 30,2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
Non-Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services charges |
|
$ |
348 |
|
$ |
407 |
|
|
$ |
353 |
|
|
$ |
470 |
|
|
$ |
394 |
|
Gain (loss) on sale of loans, net |
|
|
87 |
|
|
26 |
|
|
|
(1 |
) |
|
|
54 |
|
|
|
41 |
|
Loan servicing fees |
|
|
1,677 |
|
|
1,563 |
|
|
|
1,519 |
|
|
|
1,553 |
|
|
|
1,521 |
|
Loan servicing right origination |
|
|
1,741 |
|
|
346 |
|
|
|
228 |
|
|
|
7 |
|
|
|
(46 |
) |
Income on OREO |
|
|
10 |
|
|
40 |
|
|
|
26 |
|
|
|
83 |
|
|
|
96 |
|
Gain on sale of securities |
|
|
- |
|
|
341 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other |
|
|
171 |
|
|
164 |
|
|
|
625 |
|
|
|
153 |
|
|
|
151 |
|
Total non-interest income |
|
$ |
4,034 |
|
$ |
2,887 |
|
|
$ |
2,750 |
|
|
$ |
2,320 |
|
|
$ |
2,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the nine months ended September 30, 2019,
non-interest income improved to $9.7 million, an increase of $3.2
million, or 48.5%, over the nine months ended September 30,
2018. The increase was primarily due to the increase in
servicing fees as the result of the reduction of the servicing
right valuation allowance totaling $0.8 million and the increase in
fees generated by the $91.9 million of loans that were participated
since September 30, 2018. In addition, the Company eliminated
its allowance for unused commitments, which resulted in an increase
of $0.5 million in other non-interest income. The Company
evaluated the need for this allowance during the first quarter of
2019 and concluded there was not sufficient evidence that
represented credit loss inherent in these commitments to
substantiate the necessity of this reserve and concluded to
eliminate it. The Company will continue to evaluate credit
risk on these off-balance sheet commitments.
Non-interest expense for the three months ended
September 30, 2019 increased by $0.2 million, or 3.0%, to $7.7
million compared to the three months ended June 30, 2019, and
increased $0.6 million, or 9.2%, compared to the three months ended
September 30, 2018. Employee compensation and benefits
increased $0.5 million, or 12.8%, in the linked quarter due in part
to additional accrual of $0.3 million for incentive compensation
related to anticipated current year financial results. The
increased employee compensation and benefits was partially offset
by a $0.2 million small bank assessment credit that was received
from the FDIC, which reduced other non-interest expense. This
one-time credit was awarded to banks with total assets less than
$10 billion due to the FDIC’s Reserve fund exceeding its target
balance. The year-over-year increase was due in part to a
$0.2 million loss on the sale an OREO property during the third
quarter of 2019 and small increases in information processing,
professional fees, and business development.
|
|
For the Three Months Ended |
|
|
|
September 30,2019 |
|
June 30,2019 |
|
|
March 31,2019 |
|
|
December 31,2018 |
|
|
September 30,2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
Non-Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
$ |
4,735 |
|
|
$ |
4,199 |
|
|
$ |
4,482 |
|
|
$ |
4,059 |
|
|
$ |
4,394 |
|
Occupancy |
|
|
313 |
|
|
|
283 |
|
|
|
389 |
|
|
|
245 |
|
|
|
332 |
|
Information processing |
|
|
683 |
|
|
|
591 |
|
|
|
563 |
|
|
|
641 |
|
|
|
529 |
|
Professional fees |
|
|
483 |
|
|
|
417 |
|
|
|
399 |
|
|
|
497 |
|
|
|
351 |
|
Business development |
|
|
351 |
|
|
|
347 |
|
|
|
325 |
|
|
|
259 |
|
|
|
258 |
|
OREO expenses |
|
|
57 |
|
|
|
121 |
|
|
|
51 |
|
|
|
106 |
|
|
|
46 |
|
Writedown of OREO |
|
|
- |
|
|
|
250 |
|
|
|
- |
|
|
|
688 |
|
|
|
81 |
|
Net loss (gain) on sale of OREO |
|
|
160 |
|
|
|
9 |
|
|
|
(136 |
) |
|
|
(54 |
) |
|
|
(28 |
) |
Depreciation and amortization |
|
|
319 |
|
|
|
328 |
|
|
|
337 |
|
|
|
408 |
|
|
|
302 |
|
Other |
|
|
567 |
|
|
|
901 |
|
|
|
895 |
|
|
|
689 |
|
|
|
758 |
|
Total non-interest expense |
|
$ |
7,668 |
|
|
$ |
7,446 |
|
|
$ |
7,305 |
|
|
$ |
7,538 |
|
|
$ |
7,023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality
At September 30, 2019, non-performing assets
were $28.0 million, a decrease of $0.8 million, or 2.6%, and $7.7
million, or 21.6%, compared to June 30, 2019 and September 30,
2018, respectively. Non-performing assets as a percent of
total assets increased to 1.98% at September 30, 2019, from 1.94%
at June 30, 2019, due to the reduction in total assets and
decreased from 2.36% at September 30, 2018. During the third
quarter of 2019, two OREO properties were sold, resulting in a
decrease of $1.4 million in OREO.
Substandard loans were $105.9 million at
September 30, 2019, compared to $117.8 million at June 30, 2019 and
$118.4 million at September 30, 2018. Adverse classified
asset ratio (a non-GAAP measure) decreased to 45.67% at September
30, 2019 from 53.21% and 51.89% at June 30, 2019 and September 30,
2018, respectively. The decrease in substandard loans and the
adverse classified ratio was in part the result of a combination of
an improving milk price outlook and concerted efforts by our dairy
customers to manage their expenses wherever they reasonably
can. We are actively managing these credits, and we are
optimistic about the industry’s outlook as there was a 4.7%
increase in the 12-month future price of class III milk on the
Chicago Mercantile Exchange from June 30, 2019 to September 30,
2019.
A credit to provision for loan losses of $1.2
million was recorded for the three months ended September 30, 2019
compared to a provision of $0.9 million for the three months ended
June 30, 2019, and a provision of $1.0 million for the three months
ended September 30, 2018. For the nine months ended September
30, 2019, a provision for loan losses was $0.5 million compared to
$1.6 million for the nine months ended September 30, 2018.
The decrease in provision in the linked quarter and year-over- year
was directly related to the decrease in the dairy loan portfolio as
the result of the increase in loan participations, improvements in
milk price, and upgrade to credit ratings. The upgrade of
$26.1 million of substandard performing and special mention loans
to the watch risk category in the third quarter resulted in $0.8
million reduction to the allowance for loan losses.
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
September 30,2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Loans by risk category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sound/Acceptable/Satisfactory/Low Satisfactory |
|
$ |
771,568 |
|
|
$ |
836,988 |
|
|
$ |
896,328 |
|
|
$ |
908,172 |
|
|
$ |
901,643 |
|
Watch |
|
|
193,942 |
|
|
|
167,824 |
|
|
|
174,642 |
|
|
|
171,670 |
|
|
|
171,890 |
|
Special Mention |
|
|
9,346 |
|
|
|
25,255 |
|
|
|
4,501 |
|
|
|
6,566 |
|
|
|
11,036 |
|
Substandard Performing |
|
|
44,183 |
|
|
|
56,336 |
|
|
|
46,075 |
|
|
|
65,501 |
|
|
|
61,851 |
|
Substandard Impaired |
|
|
61,728 |
|
|
|
61,429 |
|
|
|
61,417 |
|
|
|
55,386 |
|
|
|
56,517 |
|
Total loans |
|
$ |
1,080,767 |
|
|
$ |
1,147,832 |
|
|
$ |
1,182,963 |
|
|
$ |
1,207,295 |
|
|
$ |
1,202,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The allowance for loan losses was $15.1 million
at September 30, 2019 compared to $16.5 million at December 31,
2018. The $1.4 million decrease in the allowance during the
first nine months of 2019 was the result of a reduction in general
reserves due to the decreases in total loans and the credit
upgrades discussed previously.
Conference Call
The Company will host an earnings call tomorrow,
October 18, 2019, at 8:30 a.m., CDT, conducted by Timothy J.
Schneider, President, and Glen L. Stiteley, CFO. The earnings
call will be broadcast over the Internet on the Company’s website
at http://investors.icbk.com. From the top menu, select
“News”, then “Event Calendar.” In addition, you may listen to
the Company’s earnings call via telephone by dialing (844)
835-9984. Investors should visit the Company’s website or
call in to the dial-in number set forth above at least 10 minutes
prior to the scheduled start of the call.
A replay of the earnings call will be available
until October 18, 2020, by visiting the Company’s website at
http://investors.icbk.com.
About County Bancorp, Inc.
County Bancorp, Inc., a Wisconsin corporation
and registered bank holding company founded in May 1996, and its
wholly-owned subsidiary Investors Community Bank, a
Wisconsin-chartered bank, are headquartered in Manitowoc,
Wisconsin. The state of Wisconsin is often referred to as
“America’s Dairyland,” and one of the niches it has developed is
providing financial services to agricultural businesses statewide,
with a primary focus on dairy-related lending. It also serves
business and retail customers throughout Wisconsin, with a focus on
northeastern and central Wisconsin. Its customers are served
from its full-service locations in Manitowoc, Appleton, Green Bay,
and Stevens Point and its loan production offices in Darlington,
Eau Claire, Fond du Lac, and Sheboygan.
Forward-Looking Statements
This press release includes "forward-looking
statements” within the meaning of such term in the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are subject to known and unknown risks and
uncertainties, many of which may be beyond the Company’s control.
The Company cautions you that the forward-looking statements
presented in this press release are not a guarantee of future
events, and that actual events may differ materially from those
made in or suggested by the forward-looking information contained
in this press release. Forward-looking statements generally
can be identified by the use of forward-looking terminology such as
"may," "plan," "seek," "will," "expect," "intend," "estimate,"
"anticipate," "believe" or "continue" or the negative thereof or
variations thereon or similar terminology. Factors that may cause
actual results to differ materially from those made or suggested by
the forward-looking statements contained in this press release
include those identified in the Company’s most recent annual report
on Form 10-K and subsequent filings with the Securities and
Exchange Commission. Any forward-looking statements presented
herein are made only as of the date of this press release, and the
Company does not undertake any obligation to update or revise any
forward-looking statements to reflect changes in assumptions, the
occurrence of unanticipated events, or otherwise.
Investor Relations ContactGlen L. StiteleyEVP -
CFO, Investors Community BankPhone: (920) 686-5658 Email:
gstiteley@icbk.com
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
County Bancorp,
Inc.Consolidated Financial
Summary(Unaudited) |
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
September 30,2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
Period-End Balance Sheet: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
120,845 |
|
|
$ |
116,251 |
|
|
$ |
62,426 |
|
|
$ |
61,087 |
|
|
$ |
49,996 |
|
Securities available for sale, at fair value |
|
|
154,962 |
|
|
|
158,561 |
|
|
|
192,210 |
|
|
|
195,945 |
|
|
|
190,185 |
|
Loans held for sale |
|
|
4,192 |
|
|
|
7,448 |
|
|
|
2,750 |
|
|
|
2,949 |
|
|
|
13,770 |
|
Agricultural loans |
|
|
673,742 |
|
|
|
713,602 |
|
|
|
722,107 |
|
|
|
724,508 |
|
|
|
714,310 |
|
Commercial loans |
|
|
360,132 |
|
|
|
383,542 |
|
|
|
403,490 |
|
|
|
415,672 |
|
|
|
417,146 |
|
Multi-family real estate loans |
|
|
43,487 |
|
|
|
46,683 |
|
|
|
52,974 |
|
|
|
62,321 |
|
|
|
66,403 |
|
Residential real estate loans |
|
|
3,183 |
|
|
|
3,753 |
|
|
|
4,172 |
|
|
|
4,522 |
|
|
|
4,965 |
|
Installment and consumer other |
|
|
223 |
|
|
|
252 |
|
|
|
220 |
|
|
|
272 |
|
|
|
113 |
|
Total loans |
|
|
1,080,767 |
|
|
|
1,147,832 |
|
|
|
1,182,963 |
|
|
|
1,207,295 |
|
|
|
1,202,937 |
|
Allowance for loan losses |
|
|
(15,065 |
) |
|
|
(16,258 |
) |
|
|
(17,493 |
) |
|
|
(16,505 |
) |
|
|
(16,143 |
) |
Net loans |
|
|
1,065,702 |
|
|
|
1,131,574 |
|
|
|
1,165,470 |
|
|
|
1,190,790 |
|
|
|
1,186,794 |
|
Other assets |
|
|
69,263 |
|
|
|
70,812 |
|
|
|
68,532 |
|
|
|
70,256 |
|
|
|
74,223 |
|
Total Assets |
|
$ |
1,414,964 |
|
|
$ |
1,484,646 |
|
|
$ |
1,491,388 |
|
|
$ |
1,521,027 |
|
|
$ |
1,514,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
$ |
117,224 |
|
|
$ |
111,022 |
|
|
$ |
101,434 |
|
|
$ |
121,436 |
|
|
$ |
103,862 |
|
NOW accounts and interest checking |
|
|
56,637 |
|
|
|
54,253 |
|
|
|
49,902 |
|
|
|
51,779 |
|
|
|
46,811 |
|
Savings |
|
|
6,981 |
|
|
|
6,621 |
|
|
|
6,210 |
|
|
|
5,770 |
|
|
|
6,616 |
|
Money market accounts |
|
|
248,608 |
|
|
|
239,337 |
|
|
|
225,975 |
|
|
|
218,929 |
|
|
|
208,233 |
|
Time deposits |
|
|
388,759 |
|
|
|
387,899 |
|
|
|
376,034 |
|
|
|
356,484 |
|
|
|
352,531 |
|
Brokered deposits |
|
|
206,474 |
|
|
|
256,475 |
|
|
|
269,917 |
|
|
|
308,504 |
|
|
|
317,291 |
|
National time deposits |
|
|
118,070 |
|
|
|
149,570 |
|
|
|
146,805 |
|
|
|
160,445 |
|
|
|
173,440 |
|
Total deposits |
|
|
1,142,753 |
|
|
|
1,205,177 |
|
|
|
1,176,277 |
|
|
|
1,223,347 |
|
|
|
1,208,784 |
|
FHLB advances |
|
|
44,400 |
|
|
|
59,400 |
|
|
|
100,400 |
|
|
|
89,400 |
|
|
|
102,400 |
|
Subordinated debentures |
|
|
44,820 |
|
|
|
44,781 |
|
|
|
44,742 |
|
|
|
44,703 |
|
|
|
44,663 |
|
Other liabilities |
|
|
14,239 |
|
|
|
12,564 |
|
|
|
11,952 |
|
|
|
11,492 |
|
|
|
11,134 |
|
Total Liabilities |
|
|
1,246,212 |
|
|
|
1,321,922 |
|
|
|
1,333,371 |
|
|
|
1,368,942 |
|
|
|
1,366,981 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
168,752 |
|
|
|
162,724 |
|
|
|
158,017 |
|
|
|
152,085 |
|
|
|
147,987 |
|
Total Liabilities and
Shareholders' Equity |
|
$ |
1,414,964 |
|
|
$ |
1,484,646 |
|
|
$ |
1,491,388 |
|
|
$ |
1,521,027 |
|
|
$ |
1,514,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Price
Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High - Quarter-to-date |
|
$ |
20.99 |
|
|
$ |
18.92 |
|
|
$ |
19.69 |
|
|
$ |
26.00 |
|
|
$ |
28.20 |
|
Low - Quarter-to-date |
|
$ |
16.80 |
|
|
$ |
16.24 |
|
|
$ |
16.74 |
|
|
$ |
17.37 |
|
|
$ |
24.29 |
|
Market price - Quarter-end |
|
$ |
19.62 |
|
|
$ |
17.09 |
|
|
$ |
17.60 |
|
|
$ |
17.37 |
|
|
$ |
25.10 |
|
Book value per share |
|
$ |
23.89 |
|
|
$ |
23.03 |
|
|
$ |
22.36 |
|
|
$ |
21.50 |
|
|
$ |
20.91 |
|
Tangible book value per share (1) |
|
$ |
23.10 |
|
|
$ |
22.23 |
|
|
$ |
21.54 |
|
|
$ |
20.68 |
|
|
$ |
20.07 |
|
Common shares outstanding |
|
|
6,727,908 |
|
|
|
6,717,908 |
|
|
|
6,709,254 |
|
|
|
6,709,480 |
|
|
|
6,694,230 |
|
|
(1) This is a non-GAAP financial measure. A
reconciliation to GAAP is included below. |
|
|
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
September 30,2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Loans by risk
category: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sound/Acceptable/Satisfactory/Low Satisfactory |
|
$ |
771,568 |
|
|
$ |
836,988 |
|
|
$ |
896,328 |
|
|
$ |
908,172 |
|
|
$ |
901,643 |
|
Watch |
|
|
193,942 |
|
|
|
167,824 |
|
|
|
174,642 |
|
|
|
171,670 |
|
|
|
171,890 |
|
Special Mention |
|
|
9,346 |
|
|
|
25,255 |
|
|
|
4,501 |
|
|
|
6,566 |
|
|
|
11,036 |
|
Substandard Performing |
|
|
44,183 |
|
|
|
56,336 |
|
|
|
46,075 |
|
|
|
65,501 |
|
|
|
61,851 |
|
Substandard Impaired |
|
|
61,728 |
|
|
|
61,429 |
|
|
|
61,417 |
|
|
|
55,386 |
|
|
|
56,517 |
|
Total loans |
|
|
1,080,767 |
|
|
|
1,147,832 |
|
|
|
1,182,963 |
|
|
|
1,207,295 |
|
|
|
1,202,937 |
|
Loans sold with servicing retained |
|
|
736,823 |
|
|
|
695,629 |
|
|
|
675,268 |
|
|
|
661,257 |
|
|
|
644,879 |
|
Total loans and loans sold with servicing retained |
|
$ |
1,817,590 |
|
|
$ |
1,843,461 |
|
|
$ |
1,858,231 |
|
|
$ |
1,868,552 |
|
|
$ |
1,847,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
20,776 |
|
|
$ |
20,096 |
|
|
$ |
25,880 |
|
|
$ |
22,983 |
|
|
$ |
27,881 |
|
Other real estate owned (1) |
|
|
7,252 |
|
|
|
8,693 |
|
|
|
5,019 |
|
|
|
6,568 |
|
|
|
7,851 |
|
Total non-performing assets |
|
$ |
28,028 |
|
|
$ |
28,789 |
|
|
$ |
30,899 |
|
|
$ |
29,551 |
|
|
$ |
35,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing TDRs not on nonaccrual |
|
$ |
28,520 |
|
|
$ |
28,892 |
|
|
$ |
21,111 |
|
|
$ |
18,258 |
|
|
$ |
11,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets as a % of total loans |
|
|
2.59 |
% |
|
|
2.51 |
% |
|
|
2.61 |
% |
|
|
2.45 |
% |
|
|
2.97 |
% |
Non-performing assets as a % of total assets |
|
|
1.98 |
% |
|
|
1.94 |
% |
|
|
2.07 |
% |
|
|
1.94 |
% |
|
|
2.36 |
% |
Adverse classified asset ratio (2) |
|
|
45.67 |
% |
|
|
53.21 |
% |
|
|
48.59 |
% |
|
|
57.12 |
% |
|
|
51.89 |
% |
Allowance for loan losses as a % of nonaccrual loans |
|
|
72.51 |
% |
|
|
80.90 |
% |
|
|
67.59 |
% |
|
|
71.81 |
% |
|
|
57.90 |
% |
Allowance for loan losses as a % of total loans |
|
|
1.39 |
% |
|
|
1.42 |
% |
|
|
1.48 |
% |
|
|
1.37 |
% |
|
|
1.34 |
% |
Net charge-offs (recoveries) quarter-to-date |
|
$ |
39 |
|
|
$ |
2,111 |
|
|
$ |
(236 |
) |
|
$ |
1,210 |
|
|
$ |
(21 |
) |
Provision for loan loss quarter-to-date |
|
$ |
(1,154 |
) |
|
$ |
876 |
|
|
$ |
752 |
|
|
$ |
1,572 |
|
|
$ |
993 |
|
|
(1) The quarter ended September 30, 2018, does not include
$0.4 million of bank property transferred from premises and
equipment, which is not considered a non-performing asset.
For the quarter ended December 31, 2018, and all subsequent
quarters, that bank property was considered classified due to the
length of the holding period. |
(2) This is a non-GAAP financial measure. A
reconciliation to GAAP is included below. |
|
|
|
For the Three Months Ended |
|
|
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
September 30,2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
Selected Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and Dividend Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
|
$ |
15,030 |
|
|
$ |
15,484 |
|
|
$ |
15,501 |
|
|
$ |
15,536 |
|
|
$ |
15,113 |
|
Taxable securities |
|
|
1,117 |
|
|
|
1,177 |
|
|
|
1,186 |
|
|
|
1,168 |
|
|
|
945 |
|
Tax-exempt securities |
|
|
- |
|
|
|
82 |
|
|
|
175 |
|
|
|
183 |
|
|
|
344 |
|
Federal funds sold and other |
|
|
612 |
|
|
|
465 |
|
|
|
264 |
|
|
|
223 |
|
|
|
249 |
|
Total interest and
dividend income |
|
|
16,759 |
|
|
|
17,208 |
|
|
|
17,126 |
|
|
|
17,110 |
|
|
|
16,651 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
5,574 |
|
|
|
5,678 |
|
|
|
5,424 |
|
|
|
5,273 |
|
|
|
4,980 |
|
FHLB advances and other borrowed funds |
|
|
246 |
|
|
|
415 |
|
|
|
464 |
|
|
|
427 |
|
|
|
411 |
|
Subordinated debentures |
|
|
687 |
|
|
|
683 |
|
|
|
678 |
|
|
|
667 |
|
|
|
656 |
|
Total interest expense |
|
|
6,507 |
|
|
|
6,776 |
|
|
|
6,566 |
|
|
|
6,367 |
|
|
|
6,047 |
|
Net interest income |
|
|
10,252 |
|
|
|
10,432 |
|
|
|
10,560 |
|
|
|
10,743 |
|
|
|
10,604 |
|
Provision for loan losses |
|
|
(1,154 |
) |
|
|
876 |
|
|
|
752 |
|
|
|
1,572 |
|
|
|
993 |
|
Net interest income after provision for loan losses |
|
|
11,406 |
|
|
|
9,556 |
|
|
|
9,808 |
|
|
|
9,171 |
|
|
|
9,611 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services charges |
|
|
348 |
|
|
|
407 |
|
|
|
353 |
|
|
|
470 |
|
|
|
394 |
|
Gain (loss) on sale of loans, net |
|
|
87 |
|
|
|
26 |
|
|
|
(1 |
) |
|
|
54 |
|
|
|
41 |
|
Loan servicing fees |
|
|
1,677 |
|
|
|
1,563 |
|
|
|
1,519 |
|
|
|
1,553 |
|
|
|
1,521 |
|
Loan servicing right origination |
|
|
1,741 |
|
|
|
346 |
|
|
|
228 |
|
|
|
7 |
|
|
|
(46 |
) |
Income on OREO |
|
|
10 |
|
|
|
40 |
|
|
|
26 |
|
|
|
83 |
|
|
|
96 |
|
Gain on sale of securities |
|
|
- |
|
|
|
341 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other |
|
|
171 |
|
|
|
164 |
|
|
|
625 |
|
|
|
153 |
|
|
|
151 |
|
Total non-interest income |
|
|
4,034 |
|
|
|
2,887 |
|
|
|
2,750 |
|
|
|
2,320 |
|
|
|
2,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
|
4,735 |
|
|
|
4,199 |
|
|
|
4,482 |
|
|
|
4,059 |
|
|
|
4,394 |
|
Occupancy |
|
|
313 |
|
|
|
283 |
|
|
|
389 |
|
|
|
245 |
|
|
|
332 |
|
Information processing |
|
|
683 |
|
|
|
591 |
|
|
|
563 |
|
|
|
641 |
|
|
|
529 |
|
Professional fees |
|
|
483 |
|
|
|
417 |
|
|
|
399 |
|
|
|
497 |
|
|
|
351 |
|
Business development |
|
|
351 |
|
|
|
347 |
|
|
|
325 |
|
|
|
259 |
|
|
|
258 |
|
OREO expenses |
|
|
57 |
|
|
|
121 |
|
|
|
51 |
|
|
|
106 |
|
|
|
46 |
|
Writedown of OREO |
|
|
- |
|
|
|
250 |
|
|
|
- |
|
|
|
688 |
|
|
|
81 |
|
Net loss (gain) on sale of OREO |
|
|
160 |
|
|
|
9 |
|
|
|
(136 |
) |
|
|
(54 |
) |
|
|
(28 |
) |
Depreciation and amortization |
|
|
319 |
|
|
|
328 |
|
|
|
337 |
|
|
|
408 |
|
|
|
302 |
|
Other |
|
|
567 |
|
|
|
901 |
|
|
|
895 |
|
|
|
689 |
|
|
|
758 |
|
Total non-interest expense |
|
|
7,668 |
|
|
|
7,446 |
|
|
|
7,305 |
|
|
|
7,538 |
|
|
|
7,023 |
|
Income before income taxes |
|
|
7,772 |
|
|
|
4,997 |
|
|
|
5,253 |
|
|
|
3,953 |
|
|
|
4,745 |
|
Income tax expense |
|
|
2,090 |
|
|
|
1,293 |
|
|
|
1,491 |
|
|
|
1,123 |
|
|
|
1,228 |
|
NET INCOME |
|
$ |
5,682 |
|
|
$ |
3,704 |
|
|
$ |
3,762 |
|
|
$ |
2,830 |
|
|
$ |
3,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.82 |
|
|
$ |
0.53 |
|
|
$ |
0.54 |
|
|
$ |
0.41 |
|
|
$ |
0.51 |
|
Diluted |
|
$ |
0.82 |
|
|
$ |
0.53 |
|
|
$ |
0.54 |
|
|
$ |
0.40 |
|
|
$ |
0.50 |
|
Dividends declared |
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.05 |
|
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
|
For the Three Months Ended |
|
|
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
September 30,2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except share data) |
|
Other Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets(1) |
|
|
1.57 |
% |
|
|
1.00 |
% |
|
|
1.00 |
% |
|
|
0.75 |
% |
|
|
0.94 |
% |
Return on average shareholders' equity(1) |
|
|
13.73 |
% |
|
|
9.24 |
% |
|
|
9.78 |
% |
|
|
7.58 |
% |
|
|
9.51 |
% |
Return on average common shareholders' equity (1)(2) |
|
|
14.14 |
% |
|
|
9.41 |
% |
|
|
9.99 |
% |
|
|
7.70 |
% |
|
|
9.75 |
% |
Efficiency ratio (1)(2) |
|
|
52.55 |
% |
|
|
55.38 |
% |
|
|
55.91 |
% |
|
|
52.85 |
% |
|
|
55.39 |
% |
Tangible common equity to tangible assets (2) |
|
|
11.03 |
% |
|
|
10.10 |
% |
|
|
9.73 |
% |
|
|
9.15 |
% |
|
|
8.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
5,682 |
|
|
$ |
3,704 |
|
|
$ |
3,762 |
|
|
$ |
2,830 |
|
|
$ |
3,517 |
|
Less: Preferred stock dividends |
|
|
120 |
|
|
|
118 |
|
|
|
117 |
|
|
|
111 |
|
|
|
106 |
|
Income available to common shareholders |
|
$ |
5,562 |
|
|
$ |
3,586 |
|
|
$ |
3,645 |
|
|
$ |
2,719 |
|
|
$ |
3,411 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares issued |
|
|
7,168,785 |
|
|
|
7,159,072 |
|
|
|
7,153,174 |
|
|
|
7,177,212 |
|
|
|
7,108,202 |
|
Less: Weighted average treasury shares |
|
|
443,920 |
|
|
|
443,920 |
|
|
|
443,729 |
|
|
|
442,206 |
|
|
|
443,140 |
|
Less: Weighted average non-vested restricted units awards |
|
|
32,125 |
|
|
|
30,483 |
|
|
|
16,260 |
|
|
|
30,955 |
|
|
|
29,537 |
|
Weighted average number of common shares outstanding |
|
|
6,756,990 |
|
|
|
6,745,635 |
|
|
|
6,712,551 |
|
|
|
6,704,051 |
|
|
|
6,694,599 |
|
Effect of dilutive options |
|
|
19,160 |
|
|
|
20,731 |
|
|
|
21,323 |
|
|
|
68,876 |
|
|
|
63,346 |
|
Weighted average number of common shares outstanding used to
calculate diluted earnings per common share |
|
|
6,776,150 |
|
|
|
6,766,366 |
|
|
|
6,733,874 |
|
|
|
6,772,927 |
|
|
|
6,757,945 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Annualized |
(2) This is a non-GAAP financial measure. A
reconciliation to GAAP is included below. |
|
|
|
For the Three Months Ended |
Non-GAAP Financial
Measures: |
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
September 30,2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Return on average
common shareholders'
equity reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average shareholders' equity |
|
|
13.73 |
% |
|
|
9.24 |
% |
|
|
9.78 |
% |
|
|
7.58 |
% |
|
|
9.51 |
% |
Effect of excluding average preferred shareholders' equity |
|
|
0.41 |
% |
|
|
0.17 |
% |
|
|
0.21 |
% |
|
|
0.12 |
% |
|
|
0.24 |
% |
Return on average common shareholders' equity |
|
|
14.14 |
% |
|
|
9.41 |
% |
|
|
9.99 |
% |
|
|
7.70 |
% |
|
|
9.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio GAAP
to non-GAAP reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
7,668 |
|
|
$ |
7,446 |
|
|
$ |
7,305 |
|
|
$ |
7,538 |
|
|
$ |
7,023 |
|
Less: net gain (loss) on sales and write-downs of OREO |
|
|
(160 |
) |
|
|
(259 |
) |
|
|
136 |
|
|
|
(634 |
) |
|
|
45 |
|
Adjusted non-interest expense (non-GAAP) |
|
$ |
7,508 |
|
|
$ |
7,187 |
|
|
$ |
7,441 |
|
|
$ |
6,904 |
|
|
$ |
7,068 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
10,252 |
|
|
$ |
10,432 |
|
|
$ |
10,560 |
|
|
$ |
10,743 |
|
|
$ |
10,604 |
|
Non-interest income |
|
|
4,034 |
|
|
|
2,887 |
|
|
|
2,750 |
|
|
|
2,320 |
|
|
|
2,157 |
|
Less: net gain on sales of securities |
|
|
- |
|
|
|
(341 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
Operating revenue |
|
$ |
14,286 |
|
|
$ |
12,978 |
|
|
$ |
13,310 |
|
|
$ |
13,063 |
|
|
$ |
12,761 |
|
Efficiency ratio |
|
|
52.55 |
% |
|
|
55.38 |
% |
|
|
55.91 |
% |
|
|
52.85 |
% |
|
|
55.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,2019 |
|
June 30,2019 |
|
March 31,2019 |
|
December 31,2018 |
|
September 30,2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
Tangible book value per share
and tangible common equity to
tangible assets reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity |
|
$ |
160,752 |
|
|
$ |
154,724 |
|
|
$ |
150,017 |
|
|
$ |
144,284 |
|
|
$ |
139,987 |
|
Less: Goodwill |
|
|
5,038 |
|
|
|
5,038 |
|
|
|
5,038 |
|
|
|
5,038 |
|
|
|
5,038 |
|
Less: Core deposit intangible, net of amortization |
|
|
286 |
|
|
|
354 |
|
|
|
430 |
|
|
|
513 |
|
|
|
603 |
|
Tangible common equity (non-GAAP) |
|
$ |
155,428 |
|
|
$ |
149,332 |
|
|
$ |
144,549 |
|
|
$ |
138,733 |
|
|
$ |
134,346 |
|
Common shares outstanding |
|
|
6,727,908 |
|
|
|
6,717,908 |
|
|
|
6,709,254 |
|
|
|
6,709,480 |
|
|
|
6,694,230 |
|
Tangible book value per share |
|
$ |
23.10 |
|
|
$ |
22.23 |
|
|
$ |
21.54 |
|
|
$ |
20.68 |
|
|
$ |
20.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,414,964 |
|
|
$ |
1,484,646 |
|
|
$ |
1,491,388 |
|
|
$ |
1,521,027 |
|
|
$ |
1,514,968 |
|
Less: Goodwill |
|
|
5,038 |
|
|
|
5,038 |
|
|
|
5,038 |
|
|
|
5,038 |
|
|
|
5,038 |
|
Less: Core deposit intangible, net of amortization |
|
|
286 |
|
|
|
354 |
|
|
|
430 |
|
|
|
603 |
|
|
|
701 |
|
Tangible assets (non-GAAP) |
|
$ |
1,409,640 |
|
|
$ |
1,479,254 |
|
|
$ |
1,485,920 |
|
|
$ |
1,515,386 |
|
|
$ |
1,509,229 |
|
Tangible common equity to tangible assets |
|
|
11.03 |
% |
|
|
10.10 |
% |
|
|
9.73 |
% |
|
|
9.15 |
% |
|
|
8.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adverse classified
asset ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Substandard loans |
|
$ |
105,911 |
|
|
$ |
117,765 |
|
|
$ |
107,492 |
|
|
$ |
120,887 |
|
|
$ |
118,368 |
|
Less: Impaired performing restructured loans |
|
|
(8,672 |
) |
|
|
(8,276 |
) |
|
|
(6,382 |
) |
|
|
(5,078 |
) |
|
|
(13,657 |
) |
Net substandard loans |
|
$ |
97,239 |
|
|
$ |
109,489 |
|
|
$ |
101,110 |
|
|
$ |
115,809 |
|
|
$ |
104,711 |
|
Other real estate owned |
|
|
7,252 |
|
|
|
8,693 |
|
|
|
5,019 |
|
|
|
6,568 |
|
|
|
7,851 |
|
Substandard unused commitments |
|
|
991 |
|
|
|
1,458 |
|
|
|
976 |
|
|
|
1,625 |
|
|
|
1,191 |
|
Less: Substandard government guarantees |
|
|
(7,746 |
) |
|
|
(7,821 |
) |
|
|
(5,864 |
) |
|
|
(7,111 |
) |
|
|
(9,374 |
) |
Total adverse classified assets (non-GAAP) |
|
$ |
97,736 |
|
|
$ |
111,819 |
|
|
$ |
101,241 |
|
|
$ |
116,891 |
|
|
$ |
104,379 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity (Bank) |
|
$ |
201,967 |
|
|
$ |
196,036 |
|
|
$ |
191,287 |
|
|
$ |
185,458 |
|
|
$ |
180,359 |
|
Accumulated other comprehensive loss (gain) on available for sale
securities |
|
|
(3,016 |
) |
|
|
(2,166 |
) |
|
|
(436 |
) |
|
|
2,221 |
|
|
|
4,152 |
|
Allowance for loan losses |
|
|
15,065 |
|
|
|
16,258 |
|
|
|
17,493 |
|
|
|
16,505 |
|
|
|
16,143 |
|
Allowance for unused commitments |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
475 |
|
|
|
510 |
|
Adjusted total equity (non-GAAP) |
|
$ |
214,016 |
|
|
$ |
210,128 |
|
|
$ |
208,344 |
|
|
$ |
204,659 |
|
|
$ |
201,164 |
|
Adverse classified asset ratio |
|
|
45.67 |
% |
|
|
53.21 |
% |
|
|
48.59 |
% |
|
|
57.12 |
% |
|
|
51.89 |
% |
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