County Bancorp, Inc. (Nasdaq:ICBK), the holding company of
Investors Community Bank, an agricultural and commercial bank
headquartered in Manitowoc, Wisconsin, reported net income of $3.9
million, or $0.55 diluted earnings per share, for the second
quarter of 2018, compared to net income of $4.1 million, or $0.58
diluted earnings per share, for the first quarter of 2018 and $2.1
million, or $0.29 diluted earnings per share, for the second
quarter of 2017, respectively. This represents a return on
average assets of 1.04% for the quarter ended June 30, 2018,
compared to 1.15% for the quarter ended March 31, 2018 and 0.65%
for the quarter ended June 30, 2017, respectively.
“We had another solid quarter from a net income
perspective,” said Timothy J. Schneider, President of County
Bancorp, Inc. and CEO of Investors Community Bank. “As
deposit gathering competition continues to accelerate, we have seen
some contraction in net interest margin. Borrowers and
competitors are adjusting to the rising rate environment which is
something that we haven’t seen in a decade; however, we remain
disciplined in today’s ultra-competitive market. Our
non-interest income continues to see improvement over early last
year due to additional government guaranteed sales and
participations.”
Schneider added, “Non-performing assets continue
to rise, primarily due to the continued challenges in the dairy
space. This is further complicated by recent tariff and “trade war”
discussions out of Washington, DC. With the continued
volatility in the dairy market pricing, we expect additional stress
in our agricultural portfolio for the balance of the year. We
continue to be diligent in monitoring our classified agricultural
credits and remain committed to working through this cycle in
agriculture.”
Loans and Total Assets
Total assets at June 30, 2018 were $1.5 billion,
an increase of $121.8 million, or 8.7%, and $232.2 million, or
18.1%, over total assets as of December 31, 2017 and June 30, 2017,
respectively. Total loans were $1.2 billion at June 30, 2018,
which represents a $32.6 million, or 2.8%, and $105.9 million, or
9.8%, increase over total loans at December 31, 2017 and June 30,
2017, respectively. We continued to see solid loan
demand in all of our market areas.
In addition to the on-balance sheet loan growth,
participated loans that we continue to service totaled $628.4
million at June 30, 2018, which is an increase of $27.8 million, or
4.6%, and $39.5 million, or 6.7%, over participated loans that we
continue to service at December 31, 2017 and June 30, 2017,
respectively.
Deposits
Total deposits at June 30, 2018 were $1.2
billion, an increase of $100.4 million, or 9.0%, and $216.8
million, or 21.8%, over total deposits as of December 31, 2017 and
June 30, 2017, respectively. Core deposit (demand deposits,
money market accounts, and certificates of deposit) increased $17.8
million during the first half of 2018. We continue to supplement
our deposit needs with wholesale deposits, which include brokered
deposits and national certificates of deposit. Brokered
deposits and national certificates of deposit at June 30, 2018 were
$507.5 million, which was an increase of $82.5 million, or 19.4%,
from December 31, 2017, and an increase of $122.9 million, or
32.0%, from June 30, 2017.
Net Interest Income and
Margin
Net interest income improved $0.1 million from
the three months ended March 31, 2018 to $10.3 million for three
months ended June 30, 2018. For the three months ended June
30, 2018, net interest income increased to $10.3 million from $9.6
million for the three months ended June 30, 2017, primarily due to
growth in loans and securities available for sale.
For the six months ended June 30, 2018, net
interest income improved 9.9% to $20.6 million from $18.8 million
for the six months ended June 30, 2017.
Net interest margin decreased to 2.87% for the
three months ended June 30, 2018, compared to 3.01% and 3.13% for
the three months ended March 31, 2018 and June 30, 2017,
respectively. The decline reflected the impact of the prime
rate increasing twice during the first half of 2018 which resulted
in costs related to deposits and borrowings increasing more than
the yields on loans and investments. Net interest margin for the
three months ended June 30, 2018 was also negatively impacted by
six basis points due to the reversal of interest income related to
$8.6 million of loans that were transferred to non-accrual status
during the second quarter of 2018; however, it was offset by a five
basis point improvement from the fair value accretion related to
loans acquired in our 2016 acquisition of The Business
Bank.
Yields on interest bearing assets increased by
0.06% between the second quarter of 2018 and the first quarter of
2018 while the cost of interest bearing liabilities increased by
0.23% between the same periods. For the six months ended June
30, 2018, yields on interest bearing assets increased by 0.17%, and
the cost of interest bearing liabilities increased by 0.40%
compared to the six months ended June 30, 2017.
During the second quarter of 2018, the Company
entered into a subordinated note purchase agreement to sell and
issue $30.0 million of notes to certain institutional
investors. The notes carry a fixed interest rate of 5.875%
until May 31, 2023, and have a stated maturity of June 1,
2028. As of June 1, 2023, the notes are redeemable in
whole or in part, and bear an interest rate of 3-month LIBOR plus
288.4 basis points. The notes are unsecured, subordinated
obligations of the Company and rank junior in right of payment to
the Company’s current and future senior indebtedness.
Non-Interest Income and
Expense
Non-interest income for the three months ended
June 30, 2018 increased by $0.3 million, or 13.5%, to $2.3 million
compared to the three months ended March 31, 2018, primarily the
result of increased service charges and loan servicing rights
related to the increased volume of loans being serviced.
Non-interest income for the three months ended
June 30, 2018 increased $0.4 million, or 24.8%, to $2.3 million
compared to $1.9 million for the three months ended June 30,
2017. For the six months ended June 30, 2018 non-interest
income increased $0.8 million, or 21.9%, to $4.4 million from the
six months ended June 30, 2017. Both the quarterly and
year-to-date increases are directly related to increases in loan
servicing rights which was the result of higher volumes of loans
being serviced.
Non-interest expense for the three months ended
June 30, 2018 increased by $0.2 million, or 2.2%, to $6.9 million
compared to the three months ended March 31, 2018 primarily due to
an increase in occupancy and information processing expense
directly related to our new headquarters that was purchased late in
the first quarter of 2018, as well as increases in writedown of
OREO and other expenses.
Non-interest expense for the quarter ended June
30, 2018 increased $0.3 million, or 4.5%, to $6.9 million from $6.6
million for the quarter ended June 30, 2017. For the six
months ended June 30, 2018, non-interest expense increased $1.2
million, or 9.5%, to $13.7 million compared to the six months ended
June 30, 2017. These increases were primarily related to
increases in employee compensation and benefits. Small
increases quarter-over-quarter in occupancy and information
processing were partially offset by gains on the sale of two OREO
properties in the second quarter of 2018 and decreases in
professional fees and business development between the two
quarters.
Asset Quality
Non-performing assets as a percent of total
assets increased to 2.3% at June 30, 2018, from 1.83% at March 31,
2018 and 1.47% at June 30, 2017. At June 30, 2018,
non-performing assets were $34.9 million, up from $26.7 million at
March 31, 2018 and $18.9 million at June 30, 2017. During the
second quarter of 2018, non-performing loans increased $8.6 million
due to three agricultural relationships and two commercial
relationships being put on non-accrual status. Total
impairment on these non-performing loans totaled $218,000 and was
included in the allowance for loan losses. Two properties
were transferred from non-accrual status into OREO and two
properties were sold out of OREO resulting in a net decrease of
$0.4 million in OREO during the quarter ended June 30, 2018.
A provision for loan losses of $0.5 million was
recorded for the three months ended June 30, 2018 compared to a
provision of $0.1 million and $1.5 million for the three months
ended March 31, 2018 and June 30, 2017, respectively. For the
six months ended June 30, 2018, the provision for loan losses was
$0.6 million compared to $2.3 million for the six months ended June
30, 2017. The decrease in provision expense year-over-year is
primarily the result of a $1.2 million recovery that took place
during the first quarter of 2018.
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.
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 our control. We caution
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 County Bancorp, Inc.’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 we do 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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County Bancorp,
Inc.Consolidated Financial
Summary(Unaudited) |
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June 30,2018 |
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|
March 31,2018 |
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December 31,2017 |
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September 30,2017 |
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June 30,2017 |
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(dollars in thousands, except per share data) |
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Period-End
Balance Sheet: |
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|
Assets |
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|
Cash and
cash equivalents |
|
$ |
81,044 |
|
|
$ |
90,676 |
|
|
$ |
66,771 |
|
|
$ |
71,795 |
|
|
$ |
35,939 |
|
Securities available for sale, at fair value |
|
|
187,505 |
|
|
|
141,360 |
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|
|
126,030 |
|
|
|
107,242 |
|
|
|
115,148 |
|
Loans
held for sale |
|
|
11,468 |
|
|
|
6,407 |
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|
|
6,575 |
|
|
|
2,054 |
|
|
|
8,036 |
|
Agricultural loans |
|
|
702,426 |
|
|
|
698,106 |
|
|
|
686,430 |
|
|
|
675,856 |
|
|
|
643,978 |
|
Commercial loans |
|
|
407,609 |
|
|
|
406,096 |
|
|
|
407,036 |
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|
|
397,989 |
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|
|
380,606 |
|
Multi-family real estate loans |
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|
65,713 |
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|
54,514 |
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49,133 |
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45,943 |
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|
43,879 |
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Residential real estate loans |
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|
5,437 |
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|
|
5,512 |
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|
|
6,005 |
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|
|
6,584 |
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|
|
7,060 |
|
Installment and consumer other |
|
|
339 |
|
|
|
297 |
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|
|
347 |
|
|
|
229 |
|
|
|
145 |
|
Total
loans |
|
|
1,181,524 |
|
|
|
1,164,525 |
|
|
|
1,148,951 |
|
|
|
1,126,601 |
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|
|
1,075,668 |
|
Allowance
for loan losses |
|
|
(15,129 |
) |
|
|
(14,612 |
) |
|
|
(13,247 |
) |
|
|
(13,625 |
) |
|
|
(13,503 |
) |
Net
loans |
|
|
1,166,395 |
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|
|
1,149,913 |
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|
|
1,135,704 |
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|
|
1,112,976 |
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|
|
1,062,165 |
|
Other
assets |
|
|
72,465 |
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|
|
71,901 |
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|
|
61,965 |
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|
|
65,258 |
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|
|
65,346 |
|
Total Assets |
|
$ |
1,518,877 |
|
|
$ |
1,460,257 |
|
|
$ |
1,397,045 |
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|
$ |
1,359,325 |
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|
$ |
1,286,634 |
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|
Liabilities and Shareholders' Equity |
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|
Demand
deposits |
|
$ |
95,459 |
|
|
$ |
101,167 |
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|
$ |
125,584 |
|
|
$ |
118,815 |
|
|
$ |
102,569 |
|
NOW
accounts and interest checking |
|
|
51,674 |
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|
|
48,212 |
|
|
|
51,613 |
|
|
|
46,178 |
|
|
|
47,811 |
|
Savings |
|
|
6,833 |
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|
|
6,189 |
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|
|
6,751 |
|
|
|
6,402 |
|
|
|
5,727 |
|
Money
market accounts |
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|
204,332 |
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|
|
199,834 |
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|
|
199,118 |
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|
|
169,612 |
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|
|
164,061 |
|
Time
deposits |
|
|
344,619 |
|
|
|
314,766 |
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|
|
301,760 |
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|
|
297,617 |
|
|
|
288,876 |
|
Brokered
deposits |
|
|
323,561 |
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|
|
319,692 |
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|
|
282,616 |
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|
|
281,205 |
|
|
|
235,785 |
|
National
time deposits |
|
|
183,953 |
|
|
|
182,530 |
|
|
|
142,635 |
|
|
|
146,265 |
|
|
|
148,834 |
|
Total
deposits |
|
|
1,210,431 |
|
|
|
1,172,390 |
|
|
|
1,110,077 |
|
|
|
1,066,094 |
|
|
|
993,663 |
|
FHLB
advances |
|
|
108,200 |
|
|
|
120,500 |
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|
|
121,500 |
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|
|
128,300 |
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|
|
133,300 |
|
Subordinated debentures |
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|
44,725 |
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|
|
15,540 |
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|
|
15,523 |
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|
|
15,506 |
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|
|
15,487 |
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Other
liabilities |
|
|
9,439 |
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|
|
9,013 |
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|
8,959 |
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|
|
9,696 |
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|
|
7,930 |
|
Total Liabilities |
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|
1,372,795 |
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|
1,317,443 |
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|
1,256,059 |
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|
|
1,219,596 |
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|
|
1,150,380 |
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Shareholders'
equity |
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|
146,082 |
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|
|
142,814 |
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|
|
140,986 |
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|
|
139,729 |
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|
|
136,254 |
|
Total Liabilities and
Shareholders' Equity |
|
$ |
1,518,877 |
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|
$ |
1,460,257 |
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|
$ |
1,397,045 |
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$ |
1,359,325 |
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|
$ |
1,286,634 |
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Stock Price
Information: |
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High -
Year-to-date |
|
$ |
33.76 |
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|
$ |
33.76 |
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|
$ |
35.89 |
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|
$ |
35.89 |
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|
$ |
35.89 |
|
Low -
Year-to-date |
|
$ |
25.72 |
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|
$ |
26.61 |
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|
$ |
22.73 |
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|
$ |
22.73 |
|
|
$ |
22.73 |
|
Market
price - Quarter-end |
|
$ |
27.50 |
|
|
$ |
29.21 |
|
|
$ |
29.76 |
|
|
$ |
30.05 |
|
|
$ |
24.00 |
|
Book
value per share |
|
$ |
20.63 |
|
|
$ |
20.17 |
|
|
$ |
19.93 |
|
|
$ |
19.79 |
|
|
$ |
19.31 |
|
Tangible
book value per share (1) |
|
$ |
19.77 |
|
|
$ |
19.29 |
|
|
$ |
19.04 |
|
|
$ |
18.87 |
|
|
$ |
18.38 |
|
Average
diluted shares of common stock quarter-to-date |
|
|
6,769,936 |
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|
|
6,768,965 |
|
|
|
6,768,939 |
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|
|
6,757,648 |
|
|
|
6,701,578 |
|
Common
shares outstanding |
|
|
6,693,447 |
|
|
|
6,684,923 |
|
|
|
6,673,381 |
|
|
|
6,657,601 |
|
|
|
6,641,159 |
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|
Non-Performing
Assets: |
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|
|
|
|
|
|
Nonaccrual loans |
|
$ |
26,305 |
|
|
$ |
17,746 |
|
|
$ |
11,559 |
|
|
$ |
12,862 |
|
|
$ |
12,412 |
|
Other
real estate owned (2) |
|
|
8,607 |
|
|
|
8,982 |
|
|
|
4,565 |
|
|
|
6,576 |
|
|
|
6,520 |
|
Total
non-performing assets |
|
$ |
34,912 |
|
|
$ |
26,728 |
|
|
$ |
16,124 |
|
|
$ |
19,438 |
|
|
$ |
18,932 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructured loans not
on nonaccrual |
|
$ |
11,173 |
|
|
$ |
10,488 |
|
|
$ |
9,019 |
|
|
$ |
8,087 |
|
|
$ |
4,523 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets
as a % of total assets |
|
|
2.30 |
% |
|
|
1.83 |
% |
|
|
1.15 |
% |
|
|
1.43 |
% |
|
|
1.47 |
% |
Allowance for loan
losses as a % of nonaccrual loans |
|
|
57.51 |
% |
|
|
82.34 |
% |
|
|
114.60 |
% |
|
|
105.93 |
% |
|
|
108.79 |
% |
Allowance for loan
losses as a % of total loans |
|
|
1.28 |
% |
|
|
1.25 |
% |
|
|
1.15 |
% |
|
|
1.21 |
% |
|
|
1.26 |
% |
Net charge-offs
(recoveries) quarter-to-date |
|
$ |
16 |
|
|
$ |
(1,268 |
) |
|
$ |
390 |
|
|
$ |
(89 |
) |
|
$ |
1,449 |
|
Provision for loan loss
quarter-to-date |
|
$ |
533 |
|
|
$ |
97 |
|
|
$ |
12 |
|
|
$ |
33 |
|
|
$ |
1,524 |
|
(1) This is a non-GAAP financial measure. A reconciliation
to GAAP is included below.(2) Does not include $0.4 million of bank
property transferred from premises and equipment which is not
considered a non-performing asset.
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|
For the Three Months Ended |
|
|
|
June 30,2018 |
|
|
March 31,2018 |
|
|
December 31,2017 |
|
|
September 30,2017 |
|
|
June 30,2017 |
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|
(dollars in thousands, except per share data) |
|
Selected Income
Statement Data: |
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|
Interest and Dividend Income |
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|
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|
|
|
|
|
|
|
|
|
|
Loans,
including fees |
|
$ |
14,366 |
|
|
$ |
13,691 |
|
|
$ |
13,443 |
|
|
$ |
13,070 |
|
|
$ |
12,328 |
|
Taxable
securities |
|
|
982 |
|
|
|
632 |
|
|
|
462 |
|
|
|
461 |
|
|
|
460 |
|
Tax-exempt securities |
|
|
14 |
|
|
|
157 |
|
|
|
88 |
|
|
|
82 |
|
|
|
83 |
|
Federal
funds sold and other |
|
|
401 |
|
|
|
213 |
|
|
|
256 |
|
|
|
102 |
|
|
|
81 |
|
Total interest and dividend income |
|
|
15,763 |
|
|
|
14,693 |
|
|
|
14,249 |
|
|
|
13,715 |
|
|
|
12,952 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
4,600 |
|
|
|
3,796 |
|
|
|
3,464 |
|
|
|
3,108 |
|
|
|
2,806 |
|
FHLB
advances and other borrowed funds |
|
|
487 |
|
|
|
484 |
|
|
|
481 |
|
|
|
511 |
|
|
|
464 |
|
Subordinated debentures |
|
|
338 |
|
|
|
143 |
|
|
|
135 |
|
|
|
135 |
|
|
|
125 |
|
Total interest expense |
|
|
5,425 |
|
|
|
4,423 |
|
|
|
4,080 |
|
|
|
3,754 |
|
|
|
3,395 |
|
Net
interest income |
|
|
10,338 |
|
|
|
10,270 |
|
|
|
10,169 |
|
|
|
9,961 |
|
|
|
9,557 |
|
Provision
for loan losses |
|
|
533 |
|
|
|
97 |
|
|
|
12 |
|
|
|
33 |
|
|
|
1,524 |
|
Net
interest income after provision for loan losses |
|
|
9,805 |
|
|
|
10,173 |
|
|
|
10,157 |
|
|
|
9,928 |
|
|
|
8,033 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services
charges |
|
|
445 |
|
|
|
365 |
|
|
|
332 |
|
|
|
350 |
|
|
|
399 |
|
Gain on
sale of loans, net |
|
|
45 |
|
|
|
32 |
|
|
|
22 |
|
|
|
47 |
|
|
|
24 |
|
Loan
servicing fees |
|
|
1,486 |
|
|
|
1,452 |
|
|
|
1,483 |
|
|
|
1,469 |
|
|
|
1,437 |
|
Loan
servicing rights |
|
|
127 |
|
|
|
10 |
|
|
|
(37 |
) |
|
|
94 |
|
|
|
(167 |
) |
Income on
OREO |
|
|
45 |
|
|
|
32 |
|
|
|
16 |
|
|
|
20 |
|
|
|
20 |
|
Other |
|
|
168 |
|
|
|
149 |
|
|
|
178 |
|
|
|
107 |
|
|
|
143 |
|
Total non-interest income |
|
|
2,316 |
|
|
|
2,040 |
|
|
|
1,994 |
|
|
|
2,087 |
|
|
|
1,856 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee
compensation and benefits |
|
|
4,114 |
|
|
|
4,218 |
|
|
|
3,702 |
|
|
|
3,845 |
|
|
|
3,833 |
|
Occupancy |
|
|
278 |
|
|
|
204 |
|
|
|
135 |
|
|
|
162 |
|
|
|
180 |
|
Information processing |
|
|
529 |
|
|
|
465 |
|
|
|
423 |
|
|
|
450 |
|
|
|
397 |
|
Professional fees |
|
|
359 |
|
|
|
315 |
|
|
|
406 |
|
|
|
414 |
|
|
|
423 |
|
Business
development |
|
|
260 |
|
|
|
299 |
|
|
|
210 |
|
|
|
275 |
|
|
|
286 |
|
OREO
expenses |
|
|
152 |
|
|
|
140 |
|
|
|
17 |
|
|
|
50 |
|
|
|
44 |
|
Writedown
of OREO |
|
|
104 |
|
|
|
- |
|
|
|
820 |
|
|
|
8 |
|
|
|
78 |
|
Net loss
(gain) on OREO |
|
|
(149 |
) |
|
|
- |
|
|
|
10 |
|
|
|
39 |
|
|
|
(27 |
) |
Depreciation and amortization |
|
|
324 |
|
|
|
314 |
|
|
|
319 |
|
|
|
323 |
|
|
|
323 |
|
Other |
|
|
966 |
|
|
|
830 |
|
|
|
1,123 |
|
|
|
725 |
|
|
|
1,104 |
|
Total non-interest expense |
|
|
6,937 |
|
|
|
6,785 |
|
|
|
7,165 |
|
|
|
6,291 |
|
|
|
6,641 |
|
Income
before income taxes |
|
|
5,184 |
|
|
|
5,428 |
|
|
|
4,986 |
|
|
|
5,724 |
|
|
|
3,248 |
|
Income
tax expense |
|
|
1,334 |
|
|
|
1,374 |
|
|
|
2,855 |
|
|
|
2,120 |
|
|
|
1,190 |
|
NET INCOME |
|
$ |
3,850 |
|
|
$ |
4,054 |
|
|
$ |
2,131 |
|
|
$ |
3,604 |
|
|
$ |
2,058 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
|
1.04 |
% |
|
|
1.15 |
% |
|
|
0.62 |
% |
|
|
1.11 |
% |
|
|
0.65 |
% |
Return on
average shareholders' equity |
|
|
10.63 |
% |
|
|
11.62 |
% |
|
|
6.05 |
% |
|
|
10.36 |
% |
|
|
6.04 |
% |
Return on
average common shareholders' equity (1) |
|
|
10.96 |
% |
|
|
12.04 |
% |
|
|
6.12 |
% |
|
|
10.72 |
% |
|
|
6.15 |
% |
Efficiency ratio (1) |
|
|
55.18 |
% |
|
|
55.12 |
% |
|
|
52.11 |
% |
|
|
51.83 |
% |
|
|
57.74 |
% |
Tangible
common equity to tangible assets (1) |
|
|
8.75 |
% |
|
|
8.87 |
% |
|
|
9.13 |
% |
|
|
9.29 |
% |
|
|
9.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common
Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.56 |
|
|
$ |
0.59 |
|
|
$ |
0.31 |
|
|
$ |
0.53 |
|
|
$ |
0.30 |
|
Diluted |
|
$ |
0.55 |
|
|
$ |
0.58 |
|
|
$ |
0.30 |
|
|
$ |
0.52 |
|
|
$ |
0.29 |
|
Dividends
declared |
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.06 |
|
(1) This is a non-GAAP financial
measure. A reconciliation to GAAP is included below.
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
Non-GAAP
Financial Measures: |
|
June 30,2018 |
|
|
March 31,2018 |
|
|
December 31,2017 |
|
|
September 30,2017 |
|
|
June 30,2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Return on
average common shareholders' equity
reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average shareholders' equity |
|
|
10.63 |
% |
|
|
11.62 |
% |
|
|
6.05 |
% |
|
|
10.36 |
% |
|
|
6.04 |
% |
Effect of
excluding average preferred shareholders' equity |
|
|
0.33 |
% |
|
|
0.42 |
% |
|
|
0.07 |
% |
|
|
0.36 |
% |
|
|
0.11 |
% |
Return on
average common shareholders' equity |
|
|
10.96 |
% |
|
|
12.04 |
% |
|
|
6.12 |
% |
|
|
10.72 |
% |
|
|
6.15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency
ratio GAAP to non-GAAP
reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
6,937 |
|
|
$ |
6,785 |
|
|
$ |
7,165 |
|
|
$ |
6,291 |
|
|
$ |
6,641 |
|
Less: net
gain (loss) on sales and write-downs of OREO |
|
|
45 |
|
|
|
- |
|
|
|
(830 |
) |
|
|
(47 |
) |
|
|
(51 |
) |
Adjusted
non-interest expense (non-GAAP) |
|
$ |
6,982 |
|
|
$ |
6,785 |
|
|
$ |
6,335 |
|
|
$ |
6,244 |
|
|
$ |
6,590 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income |
|
$ |
10,338 |
|
|
$ |
10,270 |
|
|
$ |
10,169 |
|
|
$ |
9,961 |
|
|
$ |
9,557 |
|
Non-interest income |
|
|
2,316 |
|
|
|
2,040 |
|
|
|
1,994 |
|
|
|
2,087 |
|
|
|
1,856 |
|
Less: net
gain on sales of securities |
|
|
- |
|
|
|
- |
|
|
|
(6 |
) |
|
|
- |
|
|
|
- |
|
Operating
revenue |
|
$ |
12,654 |
|
|
$ |
12,310 |
|
|
$ |
12,157 |
|
|
$ |
12,048 |
|
|
$ |
11,413 |
|
Efficiency ratio |
|
|
55.18 |
% |
|
|
55.12 |
% |
|
|
52.11 |
% |
|
|
51.83 |
% |
|
|
57.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,2018 |
|
|
March 31,2018 |
|
|
December 31,2017 |
|
|
September 30,2017 |
|
|
June 30,2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except share and per share
data) |
|
Tangible book
value per share and tangible common equity
to tangible assets
reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
equity |
|
$ |
138,082 |
|
|
$ |
134,814 |
|
|
$ |
132,986 |
|
|
$ |
131,729 |
|
|
$ |
128,254 |
|
Less:
Goodwill |
|
|
5,038 |
|
|
|
5,038 |
|
|
|
5,038 |
|
|
|
5,038 |
|
|
|
5,038 |
|
Less:
Core deposit intangible, net of amortization |
|
|
701 |
|
|
|
806 |
|
|
|
919 |
|
|
|
1,038 |
|
|
|
1,165 |
|
Tangible
common equity (non-GAAP) |
|
$ |
132,343 |
|
|
$ |
128,970 |
|
|
$ |
127,029 |
|
|
$ |
125,653 |
|
|
$ |
122,051 |
|
Common
shares outstanding |
|
|
6,693,447 |
|
|
|
6,684,923 |
|
|
|
6,673,381 |
|
|
|
6,657,601 |
|
|
|
6,641,159 |
|
Tangible
book value per share |
|
$ |
19.77 |
|
|
$ |
19.29 |
|
|
$ |
19.04 |
|
|
$ |
18.87 |
|
|
$ |
18.38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,518,877 |
|
|
$ |
1,460,257 |
|
|
$ |
1,397,045 |
|
|
$ |
1,359,325 |
|
|
$ |
1,286,634 |
|
Less:
Goodwill |
|
|
5,038 |
|
|
|
5,038 |
|
|
|
5,038 |
|
|
|
5,038 |
|
|
|
5,038 |
|
Less:
Core deposit intangible, net of amortization |
|
|
701 |
|
|
|
806 |
|
|
|
919 |
|
|
|
1,038 |
|
|
|
1,165 |
|
Tangible
assets (non-GAAP) |
|
$ |
1,513,138 |
|
|
$ |
1,454,413 |
|
|
$ |
1,391,088 |
|
|
$ |
1,353,249 |
|
|
$ |
1,280,431 |
|
Tangible
common equity to tangible assets |
|
|
8.75 |
% |
|
|
8.87 |
% |
|
|
9.13 |
% |
|
|
9.29 |
% |
|
|
9.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
pre-provision core income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax
net income |
|
$ |
5,184 |
|
|
$ |
5,428 |
|
|
$ |
4,986 |
|
|
$ |
5,724 |
|
|
$ |
3,248 |
|
Provision
for loan losses |
|
|
533 |
|
|
|
97 |
|
|
|
12 |
|
|
|
33 |
|
|
|
1,524 |
|
Gain on
sale of securities |
|
|
- |
|
|
|
- |
|
|
|
(6 |
) |
|
|
- |
|
|
|
- |
|
Loss on
sale of old Green Bay branch location |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
328 |
|
Acceleration of business development expenses |
|
|
- |
|
|
|
- |
|
|
|
350 |
|
|
|
- |
|
|
|
- |
|
Net loss
(gain) on sales and write-downs of OREO |
|
|
45 |
|
|
|
- |
|
|
|
(830 |
) |
|
|
(47 |
) |
|
|
(51 |
) |
Net OREO
expense |
|
|
108 |
|
|
|
108 |
|
|
|
1 |
|
|
|
30 |
|
|
|
24 |
|
Pre-tax
pre-provision core income (non-GAAP) |
|
$ |
5,870 |
|
|
$ |
5,633 |
|
|
$ |
4,513 |
|
|
$ |
5,740 |
|
|
$ |
5,073 |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
|
|
June 30, 2018 |
|
|
June 30, 2017 |
|
|
|
AverageBalance (1) |
|
|
Income/Expense |
|
|
Yields/Rates |
|
|
AverageBalance (1) |
|
|
Income/Expense |
|
|
Yields/Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
158,260 |
|
|
$ |
996 |
|
|
|
2.52 |
% |
|
$ |
113,453 |
|
|
$ |
544 |
|
|
|
1.92 |
% |
Loans
(2) |
|
|
1,187,719 |
|
|
|
14,366 |
|
|
|
4.84 |
% |
|
|
1,064,808 |
|
|
|
12,328 |
|
|
|
4.63 |
% |
Interest
bearing deposits due from other banks |
|
|
100,646 |
|
|
|
401 |
|
|
|
1.59 |
% |
|
|
44,218 |
|
|
|
80 |
|
|
|
0.72 |
% |
Total
interest-earning assets |
|
$ |
1,446,625 |
|
|
$ |
15,763 |
|
|
|
4.36 |
% |
|
$ |
1,222,479 |
|
|
$ |
12,952 |
|
|
|
4.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses |
|
|
(14,918 |
) |
|
|
|
|
|
|
|
|
|
|
(14,162 |
) |
|
|
|
|
|
|
|
|
Other
assets |
|
|
57,878 |
|
|
|
|
|
|
|
|
|
|
|
52,639 |
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,489,585 |
|
|
|
|
|
|
|
|
|
|
$ |
1,260,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings,
NOW, money market, interest checking |
|
$ |
279,958 |
|
|
|
789 |
|
|
|
1.13 |
% |
|
$ |
235,196 |
|
|
|
370 |
|
|
|
0.63 |
% |
Time
deposits |
|
|
819,037 |
|
|
|
3,811 |
|
|
|
1.86 |
% |
|
|
643,236 |
|
|
|
2,436 |
|
|
|
1.51 |
% |
Total
interest-bearing deposits |
|
$ |
1,098,995 |
|
|
$ |
4,600 |
|
|
|
1.67 |
% |
|
$ |
878,432 |
|
|
$ |
2,806 |
|
|
|
1.28 |
% |
Other
borrowings |
|
|
1,167 |
|
|
|
14 |
|
|
|
4.79 |
% |
|
|
1,605 |
|
|
|
23 |
|
|
|
5.73 |
% |
FHLB
advances |
|
|
117,327 |
|
|
|
473 |
|
|
|
1.61 |
% |
|
|
131,102 |
|
|
|
441 |
|
|
|
1.35 |
% |
Junior
subordinated debentures |
|
|
25,547 |
|
|
|
338 |
|
|
|
5.29 |
% |
|
|
15,470 |
|
|
|
125 |
|
|
|
3.23 |
% |
Total
interest-bearing liabilities |
|
$ |
1,243,036 |
|
|
$ |
5,425 |
|
|
|
1.75 |
% |
|
$ |
1,026,609 |
|
|
$ |
3,395 |
|
|
|
1.32 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
|
93,876 |
|
|
|
|
|
|
|
|
|
|
|
89,930 |
|
|
|
|
|
|
|
|
|
Other
liabilities |
|
|
7,829 |
|
|
|
|
|
|
|
|
|
|
|
8,162 |
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
$ |
1,344,741 |
|
|
|
|
|
|
|
|
|
|
$ |
1,124,701 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
144,844 |
|
|
|
|
|
|
|
|
|
|
|
136,255 |
|
|
|
|
|
|
|
|
|
Total liabilities and
equity |
|
$ |
1,489,585 |
|
|
|
|
|
|
|
|
|
|
$ |
1,260,956 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
|
|
$ |
10,338 |
|
|
|
|
|
|
|
|
|
|
$ |
9,557 |
|
|
|
|
|
Interest rate spread
(3) |
|
|
|
|
|
|
|
|
|
|
2.61 |
% |
|
|
|
|
|
|
|
|
|
|
2.92 |
% |
Net interest margin
(4) |
|
|
|
|
|
|
|
|
|
|
2.87 |
% |
|
|
|
|
|
|
|
|
|
|
3.13 |
% |
Ratio of
interest-earning assets to interest- bearing liabilities |
|
|
1.16 |
|
|
|
|
|
|
|
|
|
|
|
1.19 |
|
|
|
|
|
|
|
|
|
(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.
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
|
|
June 30, 2018 |
|
|
June 30, 2017 |
|
|
|
AverageBalance (1) |
|
|
Income/Expense |
|
|
Yields/Rates |
|
|
AverageBalance (1) |
|
|
Income/Expense |
|
|
Yields/Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
147,553 |
|
|
$ |
1,785 |
|
|
|
2.42 |
% |
|
$ |
116,139 |
|
|
$ |
1,065 |
|
|
|
1.83 |
% |
Loans
(2) |
|
|
1,180,294 |
|
|
|
28,057 |
|
|
|
4.75 |
% |
|
|
1,054,131 |
|
|
|
23,882 |
|
|
|
4.53 |
% |
Interest
bearing deposits due from other banks |
|
|
87,012 |
|
|
|
614 |
|
|
|
1.41 |
% |
|
|
40,607 |
|
|
|
141 |
|
|
|
0.69 |
% |
Total
interest-earning assets |
|
$ |
1,414,859 |
|
|
$ |
30,456 |
|
|
|
4.31 |
% |
|
$ |
1,210,877 |
|
|
$ |
25,088 |
|
|
|
4.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance
for loan losses |
|
|
(14,323 |
) |
|
|
|
|
|
|
|
|
|
|
(13,604 |
) |
|
|
|
|
|
|
|
|
Other
assets |
|
|
52,395 |
|
|
|
|
|
|
|
|
|
|
|
52,766 |
|
|
|
|
|
|
|
|
|
Total
assets |
|
$ |
1,452,931 |
|
|
|
|
|
|
|
|
|
|
$ |
1,250,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings,
NOW, money market, interest checking |
|
$ |
278,889 |
|
|
|
1,448 |
|
|
|
1.04 |
% |
|
$ |
246,638 |
|
|
|
725 |
|
|
|
0.59 |
% |
Time
deposits |
|
|
783,202 |
|
|
|
6,948 |
|
|
|
1.77 |
% |
|
|
627,046 |
|
|
|
4,518 |
|
|
|
1.44 |
% |
Total
interest-bearing deposits |
|
$ |
1,062,091 |
|
|
$ |
8,396 |
|
|
|
1.58 |
% |
|
$ |
873,684 |
|
|
$ |
5,243 |
|
|
|
1.20 |
% |
Other
borrowings |
|
|
1,226 |
|
|
|
30 |
|
|
|
4.94 |
% |
|
|
1,734 |
|
|
|
51 |
|
|
|
5.88 |
% |
FHLB
advances |
|
|
119,187 |
|
|
|
941 |
|
|
|
1.58 |
% |
|
|
123,860 |
|
|
|
794 |
|
|
|
1.28 |
% |
Junior
subordinated debentures |
|
|
20,566 |
|
|
|
481 |
|
|
|
4.68 |
% |
|
|
15,470 |
|
|
|
245 |
|
|
|
3.17 |
% |
Total
interest-bearing liabilities |
|
$ |
1,203,070 |
|
|
$ |
9,848 |
|
|
|
1.64 |
% |
|
$ |
1,014,748 |
|
|
$ |
6,333 |
|
|
|
1.24 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing deposits |
|
|
98,728 |
|
|
|
|
|
|
|
|
|
|
|
91,626 |
|
|
|
|
|
|
|
|
|
Other
liabilities |
|
|
7,698 |
|
|
|
|
|
|
|
|
|
|
|
8,500 |
|
|
|
|
|
|
|
|
|
Total
liabilities |
|
$ |
1,309,496 |
|
|
|
|
|
|
|
|
|
|
$ |
1,114,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity |
|
|
143,435 |
|
|
|
|
|
|
|
|
|
|
|
135,165 |
|
|
|
|
|
|
|
|
|
Total liabilities and
equity |
|
$ |
1,452,931 |
|
|
|
|
|
|
|
|
|
|
$ |
1,250,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
|
|
|
|
$ |
20,608 |
|
|
|
|
|
|
|
|
|
|
$ |
18,755 |
|
|
|
|
|
Interest rate spread
(3) |
|
|
|
|
|
|
|
|
|
|
2.67 |
% |
|
|
|
|
|
|
|
|
|
|
2.90 |
% |
Net interest margin
(4) |
|
|
|
|
|
|
|
|
|
|
2.91 |
% |
|
|
|
|
|
|
|
|
|
|
3.10 |
% |
Ratio of
interest-earning assets to interest-bearing liabilities |
|
|
1.18 |
|
|
|
|
|
|
|
|
|
|
|
1.19 |
|
|
|
|
|
|
|
|
|
(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.
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