County Bancorp, Inc. (the “Company”; Nasdaq: ICBK), the holding
company of Investors Community Bank (the “Bank”), a community bank
headquartered in Manitowoc, Wisconsin, today reported financial
results for the fourth quarter and year ended December 31, 2020.
Net income was $4.5 million, or $0.70 per diluted share, for the
fourth quarter of 2020, compared to net income of $3.3 million, or
$0.47 per diluted share, for the fourth quarter of 2019. For the
year ended December 31, 2020, net income was $5.5 million, or $0.79
per diluted share, compared to net income of $16.5 million, or
$2.36 per diluted share, for the year ended December 31, 2019. The
net income for the year ended December 31, 2020 included a $5.0
million goodwill impairment charge, or $0.77 loss per diluted
share, in the first quarter of 2020. Excluding that charge, net
income for the year ended December 31, 2020 would have been $10.1
million, or $1.56 per diluted share.
Tim Schneider, President of County Bancorp,
Inc., noted, “I am very proud of what our team accomplished in a
challenging year. We transformed the funding side of our balance
sheet with 10% growth in client deposits and a 53% reduction in
wholesale deposits in 2020. We continued to have strong growth in
loans sold and serviced, which has expanded our noninterest income.
Additionally, our adverse classified asset ratio improved in the
quarter due to sales of OREO properties, and we saw payment
deferrals associated with COVID-19 drop to less than 2% of total
loans.”
Schneider continued, “As we look to 2021,
improvements in milk prices continue to bolster our clients’ cash
flows and we expect to see continued improvement in our overall
credit metrics. Our strong performance through a challenging 2020
reinforces our faith in our long-term prospects and ability to grow
our business, as evidenced by our repurchase of 570,842 shares of
our common stock in 2020, including 107,437 shares during the
fourth quarter. We believe we have the right strategy to maintain
the momentum as we shift our attention to long-term growth in 2021.
We look forward to partnering and growing with our commercial,
agricultural and consumer customers in 2021 and beyond.”
Loans and Securities
- Total loans
decreased $79.6 million, or 7.4%, during the fourth quarter of
2020, to $1.0 billion, and decreased $39.5 million, or 3.8%, since
December 31, 2019, primarily due to $60.6 million of Paycheck
Protection Program (“PPP”) loans being forgiven by the Small
Business Administration (“SBA”) during the fourth quarter of 2020.
This represented 61.6% of PPP loans originated in 2020 and as of
December 31, 2020, the Company had $37.8 million of PPP loans
remaining in the loan portfolio, and $1.2 million of SBA
origination fees were deferred on the balance sheet until the
remaining loans are forgiven.
- Loan
participations the Company continued to service were $812.6 million
as of December 31, 2020, an increase of $14.7 million, or 1.9%,
compared to September 30, 2020, and an increase of $60.8 million,
or 8.1%, compared to December 31, 2019.
- As of December 31,
2020, there were 24 customer relationships with loans in payment
deferral associated with COVID-19 customer support programs
totaling $16.8 million, or 1.7% of total loans, which is a decrease
of $83.7 million, or 83.3%, since September 30, 2020.
- During the fourth
quarter of 2020, investments increased by $54.4 million, or 18.2%,
and increased $194.1 million, or 122.3%, since December 31, 2019.
For the year ended December 31, 2020 purchases totaling $247.2
million were offset in part by $34.5 million in security sales and
$25.7 million in maturities. Gain on sale of securities during 2020
was $0.7 million.
Deposits
- Total deposits as
of December 31, 2020 were $1.0 billion, a decrease of $9.3 million,
or 0.9%, from September 30, 2020, and a decrease $60.6 million, or
5.5%, since December 31, 2019.
- Client deposits
(demand deposits, NOW accounts, savings accounts, money market
accounts, and certificates of deposit) increased $18.4 million, or
2.1%, from September 30, 2020, to $916.0 million, and increased
$80.4 million, or 9.6%, since December 31, 2019.
- The Company
continued to decrease its reliance on brokered deposits and
national certificate of deposits by $27.8 million, or 18.2%, to
$124.8 million during the fourth quarter of 2020, and decreased by
$141.0 million, or 53.1%, since December 31, 2019.
Common Stock Share
Repurchase
- During the fourth
quarter of 2020, the Company repurchased 107,437 shares of its
common stock at a weighted average price of $22.64 per share.
- For the year ended
December 31, 2020, the Company repurchased 570,842 shares of its
common stock at a weighted average price of $21.89 per share.
Net Interest Income and
Margin
- Net interest
margin for the quarter ended December 31, 2020 was 3.06%, which was
an increase of 66 basis points compared to the sequential quarter
and an increase of 17 basis points year-over-year. The SBA PPP
origination fees of $3.1 million that were recognized during the
fourth quarter of 2020 in connection with the PPP loans that were
forgiven accounted for 57 basis points of the total margin
increase. The issuance of subordinated debt during 2020 adversely
affected net interest margin by 4 and 38 basis points for the
quarter ended December 31, 2020 compared to the quarters ended
September 30, 2020 and December 31, 2019, respectively.
- Interest income on
investment securities increased $0.5 million and $0.9 million,
quarter-to-quarter and year-over-year, respectively, due to
shifting balances from interest-bearing deposits with banks to
investment securities with higher yields.
- Loan interest
income (including fees) increased $1.1 million compared to the
sequential quarter primarily due to the previously mentioned SBA
PPP loan origination fees. Year-over-year, loan interest income
decreased $1.0 million primarily due to lower yields on the
previously mentioned PPP loans.
- Interest expense
on savings, NOW, money market, and interest checking accounts
decreased, despite an increase in average balance, by 10 basis
points in the sequential quarter and 73 basis points year-over year
due to the market-driven drop in the federal funds rates.
- Interest expense
on time deposits decreased quarter-over-quarter due in part to the
Company’s continued focus on decreasing reliance on time deposit
balances for funding and a decline in the federal funds rate. Rates
paid on time deposits decreased by 10 and 52 basis points in the
sequential quarter and year-over-year, respectively, which also
contributed to the overall decrease in the cost of funds.
- The Company issued
$22.4 million of subordinated debt during 2020 to strengthen the
Company’s capital structure. The issuance resulted in an increase
in interest expense on subordinated debt year of 38 basis points
year-over-year.
The table below presents the effects of changing
rates and volumes on net interest income for the periods
indicated.
|
Three Months Ended December 31, 2020 v.Three Months Ended September
30, 2020 |
|
Three Months Ended December 31, 2020 v.Three Months Ended December
31, 2019 |
|
Increase (Decrease)Due to Change in Average |
|
Increase (Decrease)Due to Change in Average |
|
Volume |
|
Rate |
|
Net |
|
Volume |
|
Rate |
|
Net |
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Interest Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
405 |
|
|
$ |
79 |
|
|
$ |
484 |
|
|
$ |
990 |
|
|
$ |
(118 |
) |
|
$ |
872 |
|
Loans |
|
(438 |
) |
|
|
1,581 |
|
|
|
1,143 |
|
|
|
(253 |
) |
|
|
(701 |
) |
|
|
(954 |
) |
Federal funds sold and interest-bearing deposits with banks |
|
(22 |
) |
|
|
14 |
|
|
|
(8 |
) |
|
|
(172 |
) |
|
|
(260 |
) |
|
|
(432 |
) |
Total interest income |
|
(55 |
) |
|
|
1,674 |
|
|
|
1,619 |
|
|
|
565 |
|
|
|
(1,079 |
) |
|
|
(514 |
) |
Interest
Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW, money market and interest checking |
$ |
18 |
|
|
$ |
(104 |
) |
|
$ |
(86 |
) |
|
$ |
422 |
|
|
$ |
(915 |
) |
|
$ |
(493 |
) |
Time deposits |
|
(234 |
) |
|
|
(111 |
) |
|
|
(345 |
) |
|
|
(1,071 |
) |
|
|
(736 |
) |
|
|
(1,807 |
) |
Other borrowings |
|
(35 |
) |
|
|
(46 |
) |
|
|
(81 |
) |
|
|
69 |
|
|
|
(1 |
) |
|
|
68 |
|
FHLB advances |
|
27 |
|
|
|
(40 |
) |
|
|
(13 |
) |
|
|
95 |
|
|
|
(26 |
) |
|
|
69 |
|
Junior subordinated debentures |
|
19 |
|
|
|
6 |
|
|
|
25 |
|
|
|
368 |
|
|
|
45 |
|
|
|
413 |
|
Total interest expense |
$ |
(205 |
) |
|
$ |
(295 |
) |
|
$ |
(500 |
) |
|
$ |
(117 |
) |
|
$ |
(1,633 |
) |
|
$ |
(1,750 |
) |
Net interest income |
$ |
150 |
|
|
$ |
1,969 |
|
|
$ |
2,119 |
|
|
$ |
682 |
|
|
$ |
554 |
|
|
$ |
1,236 |
|
The following table sets forth average balances,
average yields and rates, and income and expenses for the periods
indicated.
|
For the Three Months Ended |
|
December 31, 2020 |
|
September 30, 2020 |
|
December 31, 2019 |
|
AverageBalance (1) |
|
Income/Expense |
|
Yields/Rates |
|
AverageBalance (1) |
|
Income/Expense |
|
Yields/Rates |
|
AverageBalance (1) |
|
Income/Expense |
|
Yields/Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
$ |
322,706 |
|
|
$ |
1,978 |
|
2.44 |
% |
|
$ |
256,059 |
|
|
$ |
1,494 |
|
2.32 |
% |
|
$ |
159,202 |
|
|
$ |
1,106 |
|
2.78 |
% |
Loans (2) |
|
1,040,080 |
|
|
|
12,737 |
|
4.87 |
% |
|
|
1,083,383 |
|
|
|
11,594 |
|
4.26 |
% |
|
|
1,061,432 |
|
|
|
13,691 |
|
5.16 |
% |
Interest bearing deposits due from other banks |
|
37,385 |
|
|
|
10 |
|
0.11 |
% |
|
|
92,701 |
|
|
|
18 |
|
0.08 |
% |
|
|
98,848 |
|
|
|
441 |
|
1.79 |
% |
Total interest-earning assets |
$ |
1,400,171 |
|
|
$ |
14,725 |
|
4.18 |
% |
|
$ |
1,432,143 |
|
|
$ |
13,106 |
|
3.64 |
% |
|
$ |
1,319,482 |
|
|
$ |
15,238 |
|
4.62 |
% |
Allowance for loan losses |
|
(18,535 |
) |
|
|
|
|
|
|
|
|
(18,641 |
) |
|
|
|
|
|
|
|
|
(14,868 |
) |
|
|
|
|
|
|
Other assets |
|
87,785 |
|
|
|
|
|
|
|
|
|
86,109 |
|
|
|
|
|
|
|
|
|
77,934 |
|
|
|
|
|
|
|
Total assets |
$ |
1,469,421 |
|
|
|
|
|
|
|
|
$ |
1,499,611 |
|
|
|
|
|
|
|
|
$ |
1,382,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW, money market, interest checking |
$ |
421,969 |
|
|
$ |
383 |
|
0.36 |
% |
|
$ |
406,888 |
|
|
$ |
469 |
|
0.46 |
% |
|
$ |
322,629 |
|
|
$ |
876 |
|
1.09 |
% |
Time deposits |
|
450,193 |
|
|
|
2,099 |
|
1.85 |
% |
|
|
499,665 |
|
|
|
2,444 |
|
1.95 |
% |
|
|
658,864 |
|
|
|
3,905 |
|
2.37 |
% |
Total interest-bearing deposits |
$ |
872,162 |
|
|
$ |
2,482 |
|
1.13 |
% |
|
$ |
906,553 |
|
|
$ |
2,913 |
|
1.28 |
% |
|
$ |
981,493 |
|
|
$ |
4,781 |
|
1.95 |
% |
Other borrowings |
|
75,341 |
|
|
|
77 |
|
0.41 |
% |
|
|
101,829 |
|
|
|
158 |
|
0.62 |
% |
|
|
799 |
|
|
|
9 |
|
4.60 |
% |
FHLB advances |
|
96,191 |
|
|
|
285 |
|
1.18 |
% |
|
|
89,622 |
|
|
|
298 |
|
1.32 |
% |
|
|
44,400 |
|
|
|
216 |
|
1.94 |
% |
Junior subordinated debentures |
|
67,055 |
|
|
|
1,107 |
|
6.57 |
% |
|
|
65,903 |
|
|
|
1,082 |
|
6.53 |
% |
|
|
44,839 |
|
|
|
694 |
|
6.19 |
% |
Total interest-bearing liabilities |
$ |
1,110,749 |
|
|
$ |
3,951 |
|
1.42 |
% |
|
$ |
1,163,907 |
|
|
$ |
4,451 |
|
1.52 |
% |
|
$ |
1,071,531 |
|
|
$ |
5,700 |
|
2.13 |
% |
Non-interest-bearing deposits |
|
168,765 |
|
|
|
|
|
|
|
|
|
147,595 |
|
|
|
|
|
|
|
|
|
123,541 |
|
|
|
|
|
|
|
Other liabilities |
|
18,758 |
|
|
|
|
|
|
|
|
|
18,314 |
|
|
|
|
|
|
|
|
|
16,749 |
|
|
|
|
|
|
|
Total liabilities |
$ |
1,298,272 |
|
|
|
|
|
|
|
|
$ |
1,329,816 |
|
|
|
|
|
|
|
|
$ |
1,211,821 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
171,149 |
|
|
|
|
|
|
|
|
|
169,795 |
|
|
|
|
|
|
|
|
|
170,727 |
|
|
|
|
|
|
|
Total liabilities and
equity |
$ |
1,469,421 |
|
|
|
|
|
|
|
|
$ |
1,499,611 |
|
|
|
|
|
|
|
|
$ |
1,382,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
$ |
10,774 |
|
|
|
|
|
|
|
|
$ |
8,655 |
|
|
|
|
|
|
|
|
$ |
9,538 |
|
|
|
Interest rate spread (3) |
|
|
|
|
|
|
|
2.76 |
% |
|
|
|
|
|
|
|
|
2.12 |
% |
|
|
|
|
|
|
|
|
2.49 |
% |
Net interest margin (4) |
|
|
|
|
|
|
|
3.06 |
% |
|
|
|
|
|
|
|
|
2.40 |
% |
|
|
|
|
|
|
|
|
2.89 |
% |
Ratio of interest-earning
assets to interest-bearing liabilities |
|
1.26 |
|
|
|
|
|
|
|
|
|
1.23 |
|
|
|
|
|
|
|
|
|
1.23 |
|
|
|
|
|
|
|
(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. |
Non-Interest Income
- Loan servicing
fees decreased quarter-over-quarter primarily due a decrease
servicing income spread. Loan servicing fees as a percent of
average loans serviced decreased seven basis points in the fourth
quarter. Year-over-year, loan servicing fees increased due
primarily to a two basis point increase in loan servicing fees as a
percent of average loans serviced and an increase in loans
serviced.
- Loan
servicing right origination increased quarter-over-quarter and
year-over-year. The increase quarter-over-quarter was primarily due
to the $14.7 million increase in loans sold. Loan servicing rights
as a percent of loans serviced increased to 2.26% at December 31,
2020 from 2.16% at September 30, 2020. The year-over-year increase
from 1.66% of loan servicing rights as a percent of loans serviced
at December 31, 2019 was due in part to loans being recorded at
fair value in 2020 versus amortized cost in 2019.
|
For the Three Months Ended |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
Non-Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges |
$ |
108 |
|
$ |
108 |
|
$ |
139 |
|
$ |
113 |
|
$ |
117 |
Crop insurance commission |
|
517 |
|
|
271 |
|
|
229 |
|
|
229 |
|
|
432 |
Gain on sale of loans, net |
|
219 |
|
|
17 |
|
|
4 |
|
|
38 |
|
|
34 |
Loan servicing fees |
|
1,974 |
|
|
2,054 |
|
|
1,923 |
|
|
1,831 |
|
|
1,778 |
Loan servicing right origination |
|
1,193 |
|
|
717 |
|
|
275 |
|
|
289 |
|
|
1,146 |
Income on OREO |
|
— |
|
|
— |
|
|
3 |
|
|
— |
|
|
54 |
Gain on sale of securities |
|
— |
|
|
101 |
|
|
570 |
|
|
— |
|
|
— |
Referral fees |
|
64 |
|
|
110 |
|
|
121 |
|
|
17 |
|
|
20 |
Other |
|
283 |
|
|
294 |
|
|
237 |
|
|
203 |
|
|
161 |
Total non-interest income |
$ |
4,358 |
|
$ |
3,672 |
|
$ |
3,501 |
|
$ |
2,720 |
|
$ |
3,742 |
|
For the Three Months Ended |
|
December 31, 2020 |
|
September 30, 2020 |
|
June 30,2020 |
|
March 31,2020 |
|
December 31, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Loan servicing rights, end of period |
$ |
18,396 |
|
|
$ |
17,203 |
|
|
$ |
16,486 |
|
|
$ |
16,211 |
|
|
$ |
12,509 |
|
Loans serviced, end of
period |
|
812,560 |
|
|
|
797,819 |
|
|
|
762,058 |
|
|
|
747,553 |
|
|
|
751,738 |
|
Loan servicing rights as a %
of loans serviced |
|
2.26 |
% |
|
|
2.16 |
% |
|
|
2.16 |
% |
|
|
2.17 |
% |
|
|
1.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loan servicing fees |
$ |
1,974 |
|
|
$ |
2,054 |
|
|
$ |
1,923 |
|
|
$ |
1,831 |
|
|
$ |
1,778 |
|
Average loans serviced |
|
805,190 |
|
|
|
779,939 |
|
|
|
754,806 |
|
|
|
749,646 |
|
|
|
744,281 |
|
Annualized loan servicing fees
as a % of average loans serviced |
|
0.98 |
% |
|
|
1.05 |
% |
|
|
1.02 |
% |
|
|
0.98 |
% |
|
|
0.96 |
% |
Non-Interest Expense
- The increase in
employee compensation and benefits expense of $1.9 million in the
fourth quarter of 2020 compared to the prior quarter was primarily
the result of an additional accrual of $1.6 million for incentive
compensation related to 2020 financial results. The $2.2 million
increase for the year ended December 31, 2020 compared to the prior
year was primarily the result of a 13.9% increase in
headcount.
- During
the fourth quarter of 2020, three properties in other real estate
owned totaling $2.0 million were sold for a gain of $0.3 million.
During 2020, six properties in other real estate owned totaling
$3.5 million were sold for a gain of $0.3 million.
|
For the Three Months Ended |
|
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
Non-Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
$ |
6,687 |
|
|
$ |
4,766 |
|
$ |
4,594 |
|
$ |
5,260 |
|
$ |
5,696 |
|
Occupancy |
|
297 |
|
|
|
321 |
|
|
305 |
|
|
354 |
|
|
417 |
|
Information processing |
|
656 |
|
|
|
641 |
|
|
663 |
|
|
670 |
|
|
645 |
|
Professional fees |
|
582 |
|
|
|
555 |
|
|
480 |
|
|
401 |
|
|
371 |
|
Business development |
|
136 |
|
|
|
305 |
|
|
333 |
|
|
366 |
|
|
335 |
|
OREO expenses |
|
20 |
|
|
|
47 |
|
|
44 |
|
|
116 |
|
|
59 |
|
Writedown of OREO |
|
148 |
|
|
|
— |
|
|
— |
|
|
1,360 |
|
|
376 |
|
Net loss (gain) on sale of OREO |
|
(326 |
) |
|
|
9 |
|
|
— |
|
|
4 |
|
|
(231 |
) |
Depreciation and amortization |
|
289 |
|
|
|
295 |
|
|
303 |
|
|
301 |
|
|
319 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
— |
|
|
5,038 |
|
|
— |
|
Other |
|
1,005 |
|
|
|
728 |
|
|
743 |
|
|
1,148 |
|
|
2,278 |
|
Total non-interest expense |
$ |
9,494 |
|
|
$ |
7,667 |
|
$ |
7,465 |
|
$ |
15,018 |
|
$ |
10,265 |
|
Asset Quality
- The
decrease in substandard loans and the adverse classified asset
ratio in the quarter were primarily due to the charge-off of $3.4
million of commercial loans.
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Loans by risk
category(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sound/Acceptable/Satisfactory/Low Satisfactory |
$ |
716,313 |
|
|
$ |
800,451 |
|
|
$ |
798,945 |
|
|
$ |
706,247 |
|
|
$ |
724,444 |
|
Watch |
|
190,101 |
|
|
|
185,254 |
|
|
|
198,044 |
|
|
|
219,459 |
|
|
|
216,098 |
|
Special Mention |
|
2,501 |
|
|
|
1,851 |
|
|
|
1,856 |
|
|
|
15,036 |
|
|
|
9,239 |
|
Substandard Performing |
|
40,420 |
|
|
|
41,577 |
|
|
|
47,741 |
|
|
|
34,179 |
|
|
|
49,774 |
|
Substandard Impaired |
|
46,950 |
|
|
|
46,793 |
|
|
|
40,938 |
|
|
|
37,515 |
|
|
|
36,218 |
|
Total loans |
$ |
996,285 |
|
|
$ |
1,075,926 |
|
|
$ |
1,087,524 |
|
|
$ |
1,012,436 |
|
|
$ |
1,035,773 |
|
Adverse classified asset ratio
(2) |
|
39.43 |
% |
|
|
42.64 |
% |
|
|
41.73 |
% |
|
|
32.35 |
% |
|
|
39.85 |
% |
(1) |
Troubled debt restructurings are presented in their internal risk
rating category rather than reclassified to substandard impaired.
Prior quarters have been reclassified to reflect this change. |
(2) |
This is a non-GAAP financial measure. A reconciliation to GAAP is
included at the end of this earnings release. |
Non-Performing Assets
- A
recovery of loan loss provisions of $0.5 million was recorded for
the three months ended December 31, 2020 compared to a provision of
$0.1 million for the three months ended September 30, 2020. The
decrease in the provision relative to the previous quarter was
driven by a reduction of qualitative risk factors related to
industries at risk due to COVID-19, which was partially offset by
general reserve increases due to actual loss rates incurred.
-
Non-performing assets decreased in the quarter by $1.7 million, or
3.9%, sequentially compared to the third quarter of 2020.
Year-over-year, non-performing assets increased $6.2 million, or
17.0%, due to a $8.7 million increase in non-accrual agricultural
loans from one customer and a $2.0 million increase in non-accrual
commercial loans, which were partially offset by a $4.4 million
decrease in OREO properties.
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Non-Performing Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
$ |
41,624 |
|
|
$ |
41,351 |
|
|
$ |
35,456 |
|
|
$ |
32,051 |
|
|
$ |
30,968 |
|
Other real estate owned |
|
1,077 |
|
|
|
3,064 |
|
|
|
2,629 |
|
|
|
3,247 |
|
|
|
5,521 |
|
Total non-performing assets |
$ |
42,701 |
|
|
$ |
44,415 |
|
|
$ |
38,085 |
|
|
$ |
35,298 |
|
|
$ |
36,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing TDRs not on nonaccrual |
$ |
18,592 |
|
|
$ |
19,036 |
|
|
$ |
21,986 |
|
|
$ |
21,853 |
|
|
$ |
21,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets as a %
of total loans |
|
4.29 |
% |
|
|
4.13 |
% |
|
|
3.50 |
% |
|
|
3.49 |
% |
|
|
3.52 |
% |
Non-performing assets as a %
of total assets |
|
2.90 |
% |
|
|
2.98 |
% |
|
|
2.52 |
% |
|
|
2.61 |
% |
|
|
2.65 |
% |
Allowance for loan losses as a
% of total loans |
|
1.49 |
% |
|
|
1.73 |
% |
|
|
1.71 |
% |
|
|
1.73 |
% |
|
|
1.47 |
% |
Net charge-offs (recoveries)
quarter-to-date |
$ |
3,386 |
|
|
$ |
(1 |
) |
|
$ |
120 |
|
|
$ |
(62 |
) |
|
$ |
(253 |
) |
Conference Call
The Company will host an earnings call tomorrow,
January 22, 2021 at 8:30 a.m., CDT, conducted by Timothy J.
Schneider, President; Glen L. Stiteley, Chief Financial Officer;
David C. Coggins, Chief Banking Officer; John R. Fillingim, Chief
Credit Officer; and Matthew R. Lemke, Chief Retail and Deposit
Officer. The earnings call will be broadcast over the Internet on
the Company’s website at Investors.ICBK.com. 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 January 22, 2022, by visiting the Company’s website at
Investors.ICBK.com/QuarterlyResults.
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, including the effects of the COVID-19 pandemic
and its potential effects on the economic environment, our
customers and our operations, as well as, any changes to federal,
state, or local government laws, regulations, or orders in
connection with the pandemic. 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) |
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
Period-End Balance Sheet: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
19,500 |
|
|
$ |
53,283 |
|
|
$ |
127,432 |
|
|
$ |
21,545 |
|
|
$ |
129,011 |
|
Securities available-for-sale, at fair value |
|
352,854 |
|
|
|
298,476 |
|
|
|
226,971 |
|
|
|
246,148 |
|
|
|
158,733 |
|
Loans held for sale |
|
35,976 |
|
|
|
2,593 |
|
|
|
11,847 |
|
|
|
14,388 |
|
|
|
2,151 |
|
Agricultural loans |
|
606,881 |
|
|
|
619,617 |
|
|
|
624,340 |
|
|
|
642,066 |
|
|
|
659,725 |
|
Commercial loans |
|
313,265 |
|
|
|
317,782 |
|
|
|
328,368 |
|
|
|
325,310 |
|
|
|
331,723 |
|
Paycheck Protection Plan loans |
|
37,790 |
|
|
|
98,421 |
|
|
|
103,317 |
|
|
|
— |
|
|
|
— |
|
Multi-family real estate loans |
|
33,457 |
|
|
|
35,496 |
|
|
|
30,439 |
|
|
|
42,198 |
|
|
|
41,070 |
|
Residential real estate loans |
|
4,627 |
|
|
|
4,489 |
|
|
|
975 |
|
|
|
2,753 |
|
|
|
2,888 |
|
Installment and consumer other |
|
265 |
|
|
|
121 |
|
|
|
85 |
|
|
|
109 |
|
|
|
367 |
|
Total loans |
|
996,285 |
|
|
|
1,075,926 |
|
|
|
1,087,524 |
|
|
|
1,012,436 |
|
|
|
1,035,773 |
|
Allowance for loan losses |
|
(14,808 |
) |
|
|
(18,649 |
) |
|
|
(18,569 |
) |
|
|
(17,547 |
) |
|
|
(15,267 |
) |
Net loans |
|
981,477 |
|
|
|
1,057,277 |
|
|
|
1,068,955 |
|
|
|
994,889 |
|
|
|
1,020,506 |
|
Other assets |
|
82,551 |
|
|
|
80,426 |
|
|
|
78,712 |
|
|
|
78,004 |
|
|
|
68,378 |
|
Total Assets |
$ |
1,472,358 |
|
|
$ |
1,492,055 |
|
|
$ |
1,513,917 |
|
|
$ |
1,354,974 |
|
|
$ |
1,378,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
$ |
163,202 |
|
|
$ |
158,798 |
|
|
$ |
149,963 |
|
|
$ |
117,434 |
|
|
$ |
138,489 |
|
NOW accounts and interest checking |
|
96,624 |
|
|
|
78,026 |
|
|
|
81,656 |
|
|
|
64,873 |
|
|
|
63,781 |
|
Savings |
|
7,367 |
|
|
|
11,900 |
|
|
|
8,369 |
|
|
|
6,566 |
|
|
|
15,708 |
|
Money market accounts |
|
344,250 |
|
|
|
325,900 |
|
|
|
307,083 |
|
|
|
237,889 |
|
|
|
242,539 |
|
Time deposits |
|
304,580 |
|
|
|
322,992 |
|
|
|
346,482 |
|
|
|
364,930 |
|
|
|
375,100 |
|
Brokered deposits |
|
80,456 |
|
|
|
101,808 |
|
|
|
121,503 |
|
|
|
161,882 |
|
|
|
166,340 |
|
National time deposits |
|
44,347 |
|
|
|
50,747 |
|
|
|
57,997 |
|
|
|
66,386 |
|
|
|
99,485 |
|
Total deposits |
|
1,040,826 |
|
|
|
1,050,171 |
|
|
|
1,073,053 |
|
|
|
1,019,960 |
|
|
|
1,101,442 |
|
Federal Reserve Discount Window advances |
|
47,531 |
|
|
|
99,693 |
|
|
|
99,693 |
|
|
|
— |
|
|
|
— |
|
FHLB advances |
|
129,000 |
|
|
|
84,600 |
|
|
|
93,400 |
|
|
|
109,400 |
|
|
|
44,400 |
|
Subordinated debentures |
|
67,111 |
|
|
|
67,025 |
|
|
|
61,910 |
|
|
|
44,896 |
|
|
|
44,858 |
|
Other liabilities |
|
16,114 |
|
|
|
20,656 |
|
|
|
17,336 |
|
|
|
15,672 |
|
|
|
16,050 |
|
Total Liabilities |
|
1,300,582 |
|
|
|
1,322,145 |
|
|
|
1,345,392 |
|
|
|
1,189,928 |
|
|
|
1,206,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
171,776 |
|
|
|
169,910 |
|
|
|
168,525 |
|
|
|
165,046 |
|
|
|
172,029 |
|
Total Liabilities and
Shareholders' Equity |
$ |
1,472,358 |
|
|
$ |
1,492,055 |
|
|
$ |
1,513,917 |
|
|
$ |
1,354,974 |
|
|
$ |
1,378,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Price
Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High - Quarter-to-date |
$ |
23.72 |
|
|
$ |
22.00 |
|
|
$ |
24.67 |
|
|
$ |
27.19 |
|
|
$ |
27.98 |
|
Low - Quarter-to-date |
$ |
18.20 |
|
|
$ |
17.04 |
|
|
$ |
17.13 |
|
|
$ |
13.55 |
|
|
$ |
18.76 |
|
Market price - Quarter-end |
$ |
22.08 |
|
|
$ |
18.80 |
|
|
$ |
20.93 |
|
|
$ |
18.50 |
|
|
$ |
25.63 |
|
Book value per share |
$ |
26.42 |
|
|
$ |
25.72 |
|
|
$ |
25.18 |
|
|
$ |
24.17 |
|
|
$ |
24.32 |
|
Tangible book value per share (1) |
$ |
26.42 |
|
|
$ |
25.71 |
|
|
$ |
25.16 |
|
|
$ |
24.15 |
|
|
$ |
23.58 |
|
Common shares outstanding |
|
6,197,965 |
|
|
|
6,294,675 |
|
|
|
6,375,150 |
|
|
|
6,496,790 |
|
|
|
6,734,132 |
|
(1) |
This is a
non-GAAP financial measure. A reconciliation to GAAP is included
below. |
|
For the Three Months Ended |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
Selected Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and Dividend Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees(1) |
$ |
12,737 |
|
|
$ |
11,594 |
|
$ |
12,009 |
|
$ |
12,565 |
|
|
$ |
13,671 |
|
Taxable securities |
|
1,777 |
|
|
|
1,293 |
|
|
1,283 |
|
|
1,282 |
|
|
|
1,106 |
|
Tax-exempt securities |
|
201 |
|
|
|
167 |
|
|
162 |
|
|
6 |
|
|
|
— |
|
Federal funds sold and other |
|
10 |
|
|
|
52 |
|
|
111 |
|
|
225 |
|
|
|
442 |
|
Total interest and
dividend income |
|
14,725 |
|
|
|
13,106 |
|
|
13,565 |
|
|
14,078 |
|
|
|
15,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
2,482 |
|
|
|
2,914 |
|
|
3,721 |
|
|
4,347 |
|
|
|
4,781 |
|
FHLB advances and other borrowed funds |
|
362 |
|
|
|
456 |
|
|
343 |
|
|
244 |
|
|
|
225 |
|
Subordinated debentures |
|
1,107 |
|
|
|
1,082 |
|
|
736 |
|
|
706 |
|
|
|
695 |
|
Total interest expense |
|
3,951 |
|
|
|
4,452 |
|
|
4,800 |
|
|
5,297 |
|
|
|
5,701 |
|
Net interest income |
|
10,774 |
|
|
|
8,654 |
|
|
8,765 |
|
|
8,781 |
|
|
|
9,518 |
|
Provision for loan losses |
|
(455 |
) |
|
|
79 |
|
|
1,142 |
|
|
2,218 |
|
|
|
(51 |
) |
Net interest income after provision for loan losses |
|
11,229 |
|
|
|
8,575 |
|
|
7,623 |
|
|
6,563 |
|
|
|
9,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services charges |
|
108 |
|
|
|
108 |
|
|
139 |
|
|
113 |
|
|
|
117 |
|
Crop insurance commission |
|
517 |
|
|
|
271 |
|
|
229 |
|
|
229 |
|
|
|
432 |
|
Gain on sale of loans, net |
|
219 |
|
|
|
17 |
|
|
4 |
|
|
38 |
|
|
|
34 |
|
Loan servicing fees |
|
1,974 |
|
|
|
2,054 |
|
|
1,923 |
|
|
1,831 |
|
|
|
1,778 |
|
Loan servicing right origination |
|
1,193 |
|
|
|
717 |
|
|
275 |
|
|
289 |
|
|
|
1,146 |
|
Income on OREO |
|
— |
|
|
|
— |
|
|
3 |
|
|
— |
|
|
|
54 |
|
Gain on sale of securities |
|
— |
|
|
|
101 |
|
|
570 |
|
|
— |
|
|
|
— |
|
Referral fees |
|
64 |
|
|
|
110 |
|
|
121 |
|
|
17 |
|
|
|
20 |
|
Other |
|
283 |
|
|
|
294 |
|
|
237 |
|
|
203 |
|
|
|
161 |
|
Total non-interest income |
|
4,358 |
|
|
|
3,672 |
|
|
3,501 |
|
|
2,720 |
|
|
|
3,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
6,687 |
|
|
|
4,766 |
|
|
4,594 |
|
|
5,260 |
|
|
|
5,696 |
|
Occupancy |
|
297 |
|
|
|
321 |
|
|
305 |
|
|
354 |
|
|
|
417 |
|
Information processing |
|
656 |
|
|
|
641 |
|
|
663 |
|
|
670 |
|
|
|
645 |
|
Professional fees |
|
582 |
|
|
|
555 |
|
|
480 |
|
|
401 |
|
|
|
371 |
|
Business development |
|
136 |
|
|
|
305 |
|
|
333 |
|
|
366 |
|
|
|
335 |
|
OREO expenses |
|
20 |
|
|
|
47 |
|
|
44 |
|
|
116 |
|
|
|
59 |
|
Writedown of OREO |
|
148 |
|
|
|
— |
|
|
— |
|
|
1,360 |
|
|
|
376 |
|
Net loss (gain) on sale of OREO |
|
(326 |
) |
|
|
9 |
|
|
— |
|
|
4 |
|
|
|
(231 |
) |
Depreciation and amortization |
|
289 |
|
|
|
295 |
|
|
303 |
|
|
301 |
|
|
|
319 |
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
— |
|
|
5,038 |
|
|
|
— |
|
Other |
|
1,005 |
|
|
|
728 |
|
|
743 |
|
|
1,148 |
|
|
|
2,278 |
|
Total non-interest expense |
|
9,494 |
|
|
|
7,667 |
|
|
7,465 |
|
|
15,018 |
|
|
|
10,265 |
|
Income before income taxes |
|
6,093 |
|
|
|
4,580 |
|
|
3,659 |
|
|
(5,735 |
) |
|
|
3,046 |
|
Income tax expense (benefit) |
|
1,575 |
|
|
|
1,164 |
|
|
926 |
|
|
(547 |
) |
|
|
(258 |
) |
NET INCOME (LOSS) |
$ |
4,518 |
|
|
$ |
3,416 |
|
$ |
2,733 |
|
$ |
(5,188 |
) |
|
$ |
3,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per
share |
$ |
0.70 |
|
|
$ |
0.52 |
|
$ |
0.40 |
|
$ |
(0.79 |
) |
|
$ |
0.47 |
|
Diluted earnings (loss) per
share |
$ |
0.70 |
|
|
$ |
0.52 |
|
$ |
0.40 |
|
$ |
(0.78 |
) |
|
$ |
0.47 |
|
Dividends declared per
share |
$ |
0.10 |
|
|
$ |
0.07 |
|
$ |
0.07 |
|
$ |
0.07 |
|
|
$ |
0.05 |
|
(1) |
Referral fees
in prior quarters reclassed to non-interest income to match current
classification |
|
For the Three Months Ended |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
(dollars in thousands, except share data) |
|
Other Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
1.23 |
% |
|
|
0.91 |
% |
|
|
0.74 |
% |
|
|
(1.53 |
)% |
|
|
0.96 |
% |
Return on average shareholders' equity (1) |
|
10.56 |
% |
|
|
8.05 |
% |
|
|
6.55 |
% |
|
|
(11.97 |
)% |
|
|
7.74 |
% |
Return on average common shareholders' equity (1)(2) |
|
10.88 |
% |
|
|
8.25 |
% |
|
|
6.63 |
% |
|
|
(12.81 |
)% |
|
|
7.83 |
% |
Efficiency ratio (1)(2) |
|
63.92 |
% |
|
|
62.64 |
% |
|
|
63.83 |
% |
|
|
74.92 |
% |
|
|
67.65 |
% |
Equity to assets ratio |
|
11.67 |
% |
|
|
11.39 |
% |
|
|
11.13 |
% |
|
|
12.18 |
% |
|
|
12.48 |
% |
Tangible common equity to tangible assets (2) |
|
11.12 |
% |
|
|
10.85 |
% |
|
|
10.60 |
% |
|
|
11.58 |
% |
|
|
11.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
$ |
4,518 |
|
|
$ |
3,416 |
|
|
$ |
2,733 |
|
|
$ |
(5,188 |
) |
|
$ |
3,304 |
|
Less: Preferred stock dividends |
|
80 |
|
|
|
80 |
|
|
|
99 |
|
|
|
108 |
|
|
|
117 |
|
Income available to common shareholders |
$ |
4,438 |
|
|
$ |
3,336 |
|
|
$ |
2,634 |
|
|
$ |
(5,296 |
) |
|
$ |
3,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares issued |
|
7,206,238 |
|
|
|
7,202,000 |
|
|
|
7,198,901 |
|
|
|
7,182,945 |
|
|
|
7,173,290 |
|
Less: Weighted average treasury shares |
|
957,573 |
|
|
|
882,153 |
|
|
|
759,294 |
|
|
|
518,740 |
|
|
|
443,920 |
|
Plus: Weighted average non-vested restricted stock units |
|
67,529 |
|
|
|
66,492 |
|
|
|
65,291 |
|
|
|
39,785 |
|
|
|
32,125 |
|
Weighted average number of common shares outstanding |
|
6,316,194 |
|
|
|
6,386,339 |
|
|
|
6,504,898 |
|
|
|
6,703,990 |
|
|
|
6,761,495 |
|
Effect of dilutive options |
|
28,025 |
|
|
|
20,915 |
|
|
|
28,511 |
|
|
|
49,072 |
|
|
|
44,630 |
|
Weighted average number of common shares outstanding used to
calculate diluted earnings per common share |
|
6,344,219 |
|
|
|
6,407,254 |
|
|
|
6,533,409 |
|
|
|
6,753,062 |
|
|
|
6,806,125 |
|
(1) |
Annualized |
(2) |
This is a non-GAAP financial measure. A reconciliation to GAAP
is included below. |
Non-GAAP Financial Measures:
|
For the Three Months Ended |
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Return on average common
shareholders' equity reconciliation
(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average shareholders' equity |
|
10.56 |
% |
|
|
8.05 |
% |
|
|
6.55 |
% |
|
|
(11.97 |
)% |
|
|
7.74 |
% |
Effect of excluding average preferred shareholders' equity |
|
0.32 |
% |
|
|
0.20 |
% |
|
|
0.08 |
% |
|
|
(0.84 |
)% |
|
|
0.09 |
% |
Return on average common shareholders' equity |
|
10.88 |
% |
|
|
8.25 |
% |
|
|
6.63 |
% |
|
|
(12.81 |
)% |
|
|
7.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
$ |
9,494 |
|
|
$ |
7,667 |
|
|
$ |
7,465 |
|
|
$ |
15,018 |
|
|
$ |
10,265 |
|
Less: goodwill impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,038 |
) |
|
|
— |
|
Less: historical tax credit investment impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,149 |
) |
Less: net loss on sales and write-downs of OREO |
|
178 |
|
|
|
(9 |
) |
|
|
— |
|
|
|
(1,364 |
) |
|
|
(145 |
) |
Adjusted non-interest expense (non-GAAP) |
$ |
9,672 |
|
|
$ |
7,658 |
|
|
$ |
7,465 |
|
|
$ |
8,616 |
|
|
$ |
8,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
$ |
10,774 |
|
|
$ |
8,654 |
|
|
$ |
8,765 |
|
|
$ |
8,781 |
|
|
$ |
9,518 |
|
Non-interest income |
|
4,358 |
|
|
|
3,672 |
|
|
|
3,501 |
|
|
|
2,720 |
|
|
|
3,742 |
|
Less: net gain on sales of securities |
|
— |
|
|
|
(101 |
) |
|
|
(570 |
) |
|
|
— |
|
|
|
— |
|
Operating revenue |
$ |
15,132 |
|
|
$ |
12,225 |
|
|
$ |
11,696 |
|
|
$ |
11,501 |
|
|
$ |
13,260 |
|
Efficiency ratio |
|
63.92 |
% |
|
|
62.64 |
% |
|
|
63.83 |
% |
|
|
74.92 |
% |
|
|
67.65 |
% |
|
For the Three Months Ended |
|
For the Year Ended |
|
|
|
|
|
December 31,2020 |
|
December 31,2019 |
|
December 31,2020 |
|
December 31,2019 |
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
Adjusted diluted earnings per
share(3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
$ |
4,518 |
|
|
$ |
3,304 |
|
|
$ |
5,478 |
|
|
$ |
16,452 |
|
Less: preferred stock dividends |
|
(80 |
) |
|
|
(117 |
) |
|
|
(367 |
) |
|
|
(472 |
) |
Plus: goodwill impairment |
|
— |
|
|
|
— |
|
|
|
5,038 |
|
|
|
— |
|
Adjusted income available to common shareholders for basic earnings
per common share |
$ |
4,438 |
|
|
$ |
3,187 |
|
|
$ |
10,149 |
|
|
$ |
15,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding |
|
6,316,194 |
|
|
|
6,761,495 |
|
|
|
6,477,173 |
|
|
|
6,747,581 |
|
Effect of dilutive options |
|
28,025 |
|
|
|
44,630 |
|
|
|
28,025 |
|
|
|
21,344 |
|
Weighted average number of common shares outstanding used to
calculate diluted earnings per common share |
|
6,344,219 |
|
|
|
6,806,125 |
|
|
|
6,505,198 |
|
|
|
6,768,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per
share |
$ |
0.70 |
|
|
$ |
0.47 |
|
|
$ |
1.56 |
|
|
$ |
2.36 |
|
(1) |
Management uses the return on average common shareholders’ equity
to review our core operating results and our performance. |
(2) |
In our judgment, the adjustments made to non-interest expense allow
investors to better assess our operating expenses in relation to
our core operating revenue by removing the volatility that is
associated with certain one-time items and other discrete items
that are unrelated to our core business. |
(3) |
In our judgment, the adjustment made to diluted earnings per share
allows investors to better assess our income related to core
operations by removing the volatility associated with the goodwill
impairment, which was a one-time, non-cash expense. |
Non-GAAP Financial Measures (continued):
|
December 31,2020 |
|
September 30,2020 |
|
June 30,2020 |
|
March 31,2020 |
|
December 31,2019 |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
Tangible book value per share
and tangible common equity to
tangible assets
reconciliation(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity |
$ |
163,776 |
|
|
$ |
161,910 |
|
|
$ |
160,525 |
|
|
$ |
157,046 |
|
|
$ |
164,029 |
|
Less: Goodwill |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,038 |
|
Less: Core deposit intangible, net of amortization |
|
54 |
|
|
|
86 |
|
|
|
125 |
|
|
|
171 |
|
|
|
225 |
|
Tangible common equity (non-GAAP) |
$ |
163,722 |
|
|
$ |
161,824 |
|
|
$ |
160,400 |
|
|
$ |
156,875 |
|
|
$ |
158,766 |
|
Common shares outstanding |
|
6,197,965 |
|
|
|
6,294,675 |
|
|
|
6,375,150 |
|
|
|
6,496,790 |
|
|
|
6,734,132 |
|
Tangible book value per share |
$ |
26.42 |
|
|
$ |
25.71 |
|
|
$ |
25.16 |
|
|
$ |
24.15 |
|
|
$ |
23.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
$ |
1,472,358 |
|
|
$ |
1,492,055 |
|
|
$ |
1,513,917 |
|
|
$ |
1,354,974 |
|
|
$ |
1,378,779 |
|
Less: Goodwill |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,038 |
|
Less: Core deposit intangible, net of amortization |
|
54 |
|
|
|
86 |
|
|
|
125 |
|
|
|
171 |
|
|
|
225 |
|
Tangible assets (non-GAAP) |
$ |
1,472,304 |
|
|
$ |
1,491,969 |
|
|
$ |
1,513,792 |
|
|
$ |
1,354,803 |
|
|
$ |
1,373,516 |
|
Tangible common equity to tangible assets |
|
11.12 |
% |
|
|
10.85 |
% |
|
|
10.60 |
% |
|
|
11.58 |
% |
|
|
11.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adverse classified
asset ratio(2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Substandard loans |
$ |
87,370 |
|
|
$ |
88,370 |
|
|
$ |
88,680 |
|
|
$ |
71,694 |
|
|
$ |
85,992 |
|
Other real estate owned |
|
1,077 |
|
|
|
3,064 |
|
|
|
2,629 |
|
|
|
3,247 |
|
|
|
5,521 |
|
Substandard unused commitments |
|
4,049 |
|
|
|
5,124 |
|
|
|
3,230 |
|
|
|
2,840 |
|
|
|
2,849 |
|
Less: Substandard government guarantees |
|
(8,960 |
) |
|
|
(7,002 |
) |
|
|
(6,336 |
) |
|
|
(7,699 |
) |
|
|
(7,892 |
) |
Total adverse classified assets (non-GAAP) |
$ |
83,536 |
|
|
$ |
89,556 |
|
|
$ |
88,203 |
|
|
$ |
70,082 |
|
|
$ |
86,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity (Bank) |
$ |
205,743 |
|
|
$ |
200,011 |
|
|
$ |
201,507 |
|
|
$ |
204,089 |
|
|
$ |
204,240 |
|
Accumulated other comprehensive loss (gain) on available for sale
securities |
|
(8,686 |
) |
|
|
(8,640 |
) |
|
|
(8,734 |
) |
|
|
(5,012 |
) |
|
|
(2,505 |
) |
Allowance for loan losses |
|
14,808 |
|
|
|
18,649 |
|
|
|
18,569 |
|
|
|
17,547 |
|
|
|
15,267 |
|
Adjusted total equity (non-GAAP) |
$ |
211,865 |
|
|
$ |
210,020 |
|
|
$ |
211,342 |
|
|
$ |
216,624 |
|
|
$ |
217,002 |
|
Adverse classified asset ratio |
|
39.43 |
% |
|
|
42.64 |
% |
|
|
41.73 |
% |
|
|
32.35 |
% |
|
|
39.85 |
% |
(1) |
In our
judgment, the adjustments made to book value, equity and assets
allow investors to better assess our capital adequacy and net worth
by removing the effect of goodwill and intangible assets that are
unrelated to our core business. |
(2) |
The adjustments made to non-performing assets allow management
to better assess asset quality and monitor the amount of capital
coverage necessary for non-performing assets. |
County Bancorp (NASDAQ:ICBK)
Historical Stock Chart
From Sep 2024 to Oct 2024
County Bancorp (NASDAQ:ICBK)
Historical Stock Chart
From Oct 2023 to Oct 2024