County Bancorp Announces Improvement in Credit Quality
June 21 2021 - 4:01PM
County Bancorp, Inc. (Nasdaq: ICBK; the “Company”), the parent
company for Investors Community Bank, announced today that as of
May 31, 2021, the Company's non-performing assets decreased $13.3
million or 29.7% compared to March 31, 2021. In addition, the
Company’s adverse classified assets (a non-GAAP measure; see below
for a reconciliation to GAAP metrics) as of May 31, 2021, decreased
$29.8 million or 34.9% compared to March 31, 2021.
“A sustained recovery in the dairy market is
benefiting our clients' cash flows, and in turn, reducing the
credit risk in our loan portfolio," said Tim Schneider, President
of County Bancorp. He continued, "Loans rated watch and worse have
decreased $70.9 million between March 31, 2021 and May 31, 2021,
including a $18.4 million decrease in substandard impaired loans,
and we expect these trends to continue. Assuming credit quality
trends continue as expected, we expect to see a benefit to our
second quarter earnings due to improvements in our allowance for
loan and lease losses assumptions because of the decrease in watch
and worse rated loans and the release of specific reserves related
to the decrease in substandard impaired loans. We look forward to
growing with our commercial, agricultural, and consumer
customers.”
The following tables show certain of the
Company’s unaudited, internal credit quality metrics as of March
31, 2021 and May 31, 2021:
|
|
May 31,2021 |
|
|
March 31,2021 |
|
|
|
(dollars in thousands) |
|
Loans by risk category: |
|
|
|
|
|
|
|
|
Sound/Acceptable/Satisfactory/Low Satisfactory |
|
$ |
831,164 |
|
|
$ |
757,160 |
|
Watch |
|
|
123,410 |
|
|
|
165,823 |
|
Special Mention |
|
|
575 |
|
|
|
605 |
|
Substandard Performing |
|
|
28,865 |
|
|
|
38,961 |
|
Substandard Impaired |
|
|
30,744 |
|
|
|
49,115 |
|
Total loans |
|
$ |
1,014,758 |
|
|
$ |
1,011,664 |
|
|
|
May 31,2021 |
|
|
March 31,2021 |
|
|
|
(dollars in thousands) |
|
Non-Performing Assets: |
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
30,873 |
|
|
$ |
43,973 |
|
Other real estate owned |
|
|
554 |
|
|
|
739 |
|
Total non-performing assets |
|
$ |
31,427 |
|
|
$ |
44,712 |
|
|
|
|
|
|
|
|
|
|
Performing TDRs not on nonaccrual |
|
$ |
7,674 |
|
|
$ |
13,495 |
|
|
|
|
|
|
|
|
|
|
Non-performing assets as a %
of total loans |
|
|
3.10 |
% |
|
|
4.42 |
% |
Non-performing assets as a %
of total assets |
|
|
2.08 |
% |
|
|
3.00 |
% |
Allowance for loan losses as a
% of total loans |
|
|
1.52 |
% |
|
|
1.49 |
% |
Net charge-offs (recoveries)
quarter-to-date |
|
$ |
(608 |
) |
|
$ |
(32 |
) |
|
|
May 31,2021 |
|
|
March 31,2021 |
|
|
|
(dollars in thousands) |
|
Adverse classified asset ratio
(1): |
|
|
|
|
|
|
|
|
Substandard loans |
|
$ |
59,609 |
|
|
$ |
88,076 |
|
Other real estate owned |
|
|
554 |
|
|
|
739 |
|
Substandard unused commitments |
|
|
3,612 |
|
|
|
5,091 |
|
Less: Substandard government guarantees |
|
|
(8,159 |
) |
|
|
(8,485 |
) |
Total adverse classified assets (non-GAAP) |
|
$ |
55,616 |
|
|
$ |
85,421 |
|
|
|
|
|
|
|
|
|
|
Total equity (Bank) |
|
$ |
204,321 |
|
|
$ |
202,200 |
|
Accumulated other comprehensive gain on available for sale
securities |
|
|
(4,580 |
) |
|
|
(1,652 |
) |
Allowance for loan losses |
|
|
15,440 |
|
|
|
15,082 |
|
Adjusted total equity (non-GAAP) |
|
$ |
215,181 |
|
|
$ |
215,630 |
|
Adverse classified asset ratio |
|
|
25.85 |
% |
|
|
39.61 |
% |
(1) |
|
Adverse
classified asset ratio is a non-GAAP metric. 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 |
About County
Bancorp, Inc.
County Bancorp, Inc., a Wisconsin corporation
and registered bank holding company founded in May 1996, and our
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 we have developed is
providing financial services to agricultural businesses statewide,
with a primary focus on dairy-related lending. We also serve
business and retail customers throughout Wisconsin, with a focus on
northeastern and central Wisconsin. Our customers are served from
our full-service locations in Manitowoc, Appleton, Green Bay, and
Stevens Point and our loan production offices in Darlington, Eau
Claire, Fond du Lac and Sheboygan. Visit our Investor Relations
site for details: Investors.ICBK.com
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
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