icbk-ex991

Manitowoc, Wisconsin, July 18, 2019 – 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 $3.7 million, or $0.53 diluted earnings per share, for the second quarter of 2019, compared to net income of $3.8 million, or $0.54 diluted earnings per share, for the first quarter of 2019 and $3.9 million, or $0.55 diluted earnings per share, for the second quarter of 2018. This represents an annualized return on average assets of 1.00% for the three and six months ended June 30, 2019, compared to 1.04% and 1.10% for the three and six months ended June 30, 2018, respectively.

“We are very pleased with our most recent quarter and first half earnings, even though we still face some credit challenges in our agricultural portfolio due to the recent prolonged low milk price cycle,” stated Tim Schneider, President of the Company and CEO of the Bank. “We are starting to see an improved milk price environment: the 12-month forward looking average for class III milk increased from $16.00 to $17.04 per hundredweight on the Chicago Mercantile Exchange from March 31 to June 30, 2019. These improvements are encouraging, but it is going to take some time to see an impact on our overall classified assets.”

Schneider continued, “As previously announced, we are committed to reducing our wholesale funding, and we were able to make significant progress toward that in the first half of 2019, primarily through selling loan participations. We are also very pleased with our client deposit growth year-over-year and during this quarter.”

Total assets at June 30, 2019 were $1.5 billion, a decrease of $6.7 million, or 0.5%, and a decrease of $34.2 million, or 2.3%, over total assets as of March 31, 2019 and June 30, 2018, respectively. Total loans were $1.1 billion at June 30, 2019, which represents a $35.1 million, or 3.0%, decrease over total loans at March 31, 2019, and a decrease of $33.7 million, or 2.9%, over total loans at June 30, 2018.

We continued to focus on participating loans off balance sheet during the second quarter of 2019. During the second quarter of 2019, participated loans that the Company continued to service increased to $695.6 million at June 30, 2019 which was an increase of $20.4 million, or 3.0%, and $67.2 million, or 10.7%, over participated loans that the Company serviced at March 31, 2019 and June 30, 2018, respectively.

Total deposits at June 30, 2019 were $1.2 billion, an increase of $28.9 million, or 2.5%, and a decrease of $5.3 million, or 0.4%, over total deposits as of March 31, 2019 and June 30, 2018, respectively. Client deposits (demand deposits, money market accounts, and certificates of deposit) increased $39.6 million, or 5.2%, since March 31, 2019, and increased $96.3

Due to the increases in loan participations and client deposit growth, the Company decreased its reliance on brokered deposits and national certificates of deposit to $406.0 million at June 30, 2019. This represents a decrease of $10.7 million, or 2.6%, from March 31, 2019, and a decrease of $101.5 million, or 20.0%, from June 30, 2018.

During the second quarter of 2019, the Company also paid off a portion of its FHLB borrowings. At June 30, 2019, borrowings from the FHLB totaled $59.4 million, which was a decrease of $41.0 million, or 40.8%, from March 31, 2019, and a decrease of $48.8 million, or 45.1%, from June 30, 2018.

Net interest income was $10.4 million for the three months ended June 30, 2019, which was a $0.1 million, or 1.2%, decrease from the three months ended March 31, 2019, and a $0.1 million, or 0.9%, increase from the three months ended June 30, 2018. The primary reason for the second quarter decline in net interest income compared to the preceding quarter was the increase in loan participations that resulted in lower average loan balances during the period.

For the six months ended June 30, 2019, net interest income improved 1.9% to $21.0 million from $20.6 million for the six month ended June 30, 2018.

Net interest margin was 2.92% for the three months ended June 30, 2019, which was a decrease from 2.94% for the three months ended March 31, 2019, and an increase from 2.87% for the three months ended June 30, 2018. A slight decline in net interest margin was realized over the linked quarter because while loan yields improved 12 basis points, the average loan balance declined by 2.6% and interest rates on deposits increased 10 basis points on a steady average balance. Year-over-year second quarter net interest margin increased by five basis points primarily due to a 42 basis point improvement in loan yields, which was partially offset by a 42 basis point increase in cost of funds.

For the six months ended June 30, 2019, net interest margin improved slightly to 2.93% from 2.91% for the six months ended June 30, 2018, primarily as a result of a 45 basis point improvement in loan yields that was partially offset by a 46 basis point increase in cost of funds.

Non-interest income for the three months ended June 30, 2019 increased by $0.1 million, or 5.0%, to $2.9 million compared to the three months ended March 31, 2019. During the second quarter, the Company continued to reduce the valuation allowance on its loan servicing rights portfolio, which resulted in an increase of $0.1 million of loan servicing rights for the quarter. The reduction of the valuation allowance is expected to continue throughout the remaining quarters of 2019.

Non-interest income for the three months ended June 30, 2019 increased $0.6 million, or 24.7%, compared to $2.3 million for the three months ended June 30, 2018. The year-over-year increase was primarily due to the reduction of the valuation allowance discussed above, increases in loan servicing fees and rights which were the result of higher volumes of loans being serviced, and a $0.3 million gain on the sale of securities during the second quarter of 2019.

For the six months ended June 30, 2019, non-interest income improved to $5.6 million, an increase of $1.3 million, or 29.4%, over the six months ended June 30, 2018. The increase was primarily the result of the reduction in the valuation allowance on the loan servicing rights portfolio and security sales discussed above, as well as the reduction of the allowance for unused commitments of $0.5 million, included in other non-interest income, in the first quarter of 2019. The Company evaluated the need for this allowance during the first quarter of 2019 and concluded there was no 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 going forward.

Non-interest expense for the three months ended June 30, 2019 increased by $0.1 million, or 1.9%, to $7.4 million compared to the three months ended March 31, 2019, and increased $0.5 million, or 7.3%, compared to the three months ended June 30, 2018. Employee compensation and benefits decreased $0.3 million, or 6.3%, in the linked quarter due to lower payroll taxes resulting from social security tax limits being met during the first quarter, but was offset by a $0.3

million writedown of an agricultural OREO property. The year-over-year increase was primarily due to a $0.3 million write-down on an OREO property during the second quarter of 2019 and small increases in information processing, professional fees, and business development.

Non-performing assets as a percent of total assets decreased to 1.94% at June 30, 2019, from 2.07% at March 31, 2019, and 2.30% at June 30, 2018. At June 30, 2019, non-performing assets were $28.8 million, a decrease of $2.1 million, or 6.8%, and $6.1 million, or 17.5%, at March 31, 2019 and June 30, 2018, respectively. During the second quarter of 2019, $4.1 million of non-performing loans was transferred to OREO; however, two OREO properties were sold during the quarter resulting in a net increase of $3.7 million in OREO during the quarter ended June 30, 2019.

Substandard loans were $117.8 million at June 30, 2019, compared to $107.5 million at March 31, 2019 and $93.8 million at June 30, 2018. Adverse classified asset ratio (a non-GAAP measure) increased to 53.21% at June 30, 2019 from 48.59% and 47.34% at March 31, 2019 and June 30, 2018, respectively. The increase in substandard loans and the adverse classified ratio was the result of the prolonged strain of Wisconsin’s agricultural economy; however, we are actively managing these credits, and we are optimistic about the industry’s outlook as there was a 6.5% increase in the 12-month future price of class III milk from March 31, 2019 to June 30, 2019.

A provision for loan losses of $0.9 million was recorded for the three months ended June 30, 2019 compared to a provision of $0.8 million and $0.5 million for the three months ended March 31, 2019 and June 30, 2018, respectively. For the six months ended June 30, 2019, a provision for loan losses was $1.6 million compared to $0.6 million for the six months ended June 30, 2018. The increase in provision in the linked quarter and year-over- year was directly related the $2.1 million in net charge-offs that took place during the second quarter of 2019 which related to a commercial real estate relationship that lost its primary tenant, as well as an increase in special mention and substandard loans during the second quarter of 2019.

The allowance for loan losses was $16.3 million at June 30, 2019 compared to $16.5 million at December 31, 2018. The $0.2 million decrease in the allowance during the first six months of 2019 was the result of a reduction in general reserves due to the decreases in total loans.

The Company will host an earnings call today, July 18, 2019, at 1:30 p.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 July 18, 2020, by visiting the Company’s website at http://investors.icbk.com.

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.

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.

County Bancorp, Inc. Consolidated Financial Summary (Unaudited)	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
	(dollars in thousands, except per share data)
Period-End Balance Sheet:
Assets
Cash and cash equivalents	$	116,251		$	62,426		$	61,087		$	49,996		$	81,044
Securities available for sale, at fair value		158,561			192,210			195,945			190,185			187,505
Loans held for sale		7,448			2,750			2,949			13,770			11,468
Agricultural loans		713,602			722,107			724,508			714,310			702,426
Commercial loans		383,542			403,490			415,672			417,146			407,609
Multi-family real estate loans		46,683			52,974			62,321			66,403			65,713
Residential real estate loans		3,753			4,172			4,522			4,965			5,437
Installment and consumer other		252			220			272			113			339
Total loans		1,147,832			1,182,963			1,207,295			1,202,937			1,181,524
Allowance for loan losses		(16,258	)		(17,493	)		(16,505	)		(16,143	)		(15,129	)
Net loans		1,131,574			1,165,470			1,190,790			1,186,794			1,166,395
Other assets		70,812			68,532			70,057			74,223			72,465
Total Assets	$	1,484,646		$	1,491,388		$	1,520,828		$	1,514,968		$	1,518,877

Liabilities and Shareholders' Equity
Demand deposits	$	111,022		$	101,434		$	121,436		$	103,862		$	95,459
NOW accounts and interest checking		54,253			49,902			51,779			46,811			51,674
Savings		6,621			6,210			5,770			6,616			6,833
Money market accounts		239,337			225,975			218,929			208,233			204,332
Time deposits		387,899			376,034			356,484			352,531			344,619
Brokered deposits		256,475			269,917			308,504			317,291			323,561
National time deposits		149,570			146,805			160,445			173,440			183,953
Total deposits		1,205,177			1,176,277			1,223,347			1,208,784			1,210,431
FHLB advances		59,400			100,400			89,400			102,400			108,200
Subordinated debentures		44,781			44,742			44,703			44,663			44,725
Other liabilities		12,564			11,952			11,293			11,134			9,439
Total Liabilities		1,321,922			1,333,371			1,368,743			1,366,981			1,372,795

Shareholders' equity		162,724			158,017			152,085			147,987			146,082
Total Liabilities and Shareholders' Equity	$	1,484,646		$	1,491,388		$	1,520,828		$	1,514,968		$	1,518,877

Stock Price Information:
High - Quarter-to-date	$	18.92		$	19.69		$	26.00		$	28.20		$	29.26
Low - Quarter-to-date	$	16.24		$	16.74		$	17.37		$	24.29		$	25.72
Market price - Quarter-end	$	17.09		$	17.60		$	17.37		$	25.10		$	27.50
Book value per share	$	23.03		$	22.36		$	21.50		$	20.91		$	20.63
Tangible book value per share ⁽¹⁾	$	22.23		$	21.54		$	20.65		$	20.07		$	19.77
Common shares outstanding		6,717,908			6,709,254			6,709,480			6,694,230			6,693,447

	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
	(dollars in thousands)
Loans by risk category:
Sound/Acceptable/Satisfactory/ Low Satisfactory	$	836,988		$	896,328		$	908,172		$	901,643		$	896,509
Watch		167,824			174,642			171,670			171,890			186,399
Special Mention		25,255			4,501			6,566			11,036			4,783
Substandard Performing		56,336			46,075			65,501			61,851			46,751
Substandard Impaired		61,429			61,417			55,386			56,517			47,082
Total loans		1,147,832			1,182,963			1,207,295			1,202,937			1,181,524
Loans sold with servicing retained		695,629			675,268			661,257			644,879			628,435
Total loans and loans sold with servicing retained	$	1,843,461		$	1,858,231		$	1,868,552		$	1,847,816		$	1,809,959

Non-Performing Assets:
Nonaccrual loans	$	20,096		$	25,880		$	22,983		$	27,881		$	26,305
Other real estate owned⁽²⁾		8,693			5,019			6,568			7,851			8,607
Total non-performing assets	$	28,789		$	30,899		$	29,551		$	35,732		$	34,912

Performing TDRs not on nonaccrual	$	28,892		$	21,111		$	18,258		$	11,863		$	11,173

Non-performing assets as a % of total loans		2.51	%		2.61	%		2.45	%		2.97	%		2.95	%
Non-performing assets as a % of total assets		1.94	%		2.07	%		1.94	%		2.36	%		2.30	%
Adverse classified asset ratio ⁽¹⁾		53.21	%		48.59	%		57.12	%		51.89	%		47.34	%
Allowance for loan losses as a % of nonaccrual loans		80.90	%		67.59	%		71.81	%		57.90	%		57.51	%
Allowance for loan losses as a % of total loans		1.42	%		1.48	%		1.37	%		1.34	%		1.28	%
Net charge-offs (recoveries) quarter-to-date	$	2,111		$	(236	)	$	1,210		$	(21	)	$	16
Provision for loan loss quarter-to-date	$	876		$	752		$	1,572		$	993		$	533

	For the Three Months Ended
	June 30, 2019		March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
	(dollars in thousands, except per share data)
Selected Income Statement Data:
Interest and Dividend Income
Loans, including fees	$	15,484	$	15,501		$	15,536		$	15,113		$	14,366
Taxable securities		1,177		1,186			1,168			945			982
Tax-exempt securities		82		175			183			344			14
Federal funds sold and other		465		264			223			249			401
Total interest and dividend income		17,208		17,126			17,110			16,651			15,763

Interest Expense
Deposits		5,678		5,424			5,273			4,980			4,600
FHLB advances and other borrowed funds		415		464			427			411			487
Subordinated debentures		683		678			667			656			338
Total interest expense		6,776		6,566			6,367			6,047			5,425
Net interest income		10,432		10,560			10,743			10,604			10,338
Provision for loan losses		876		752			1,572			993			533
Net interest income after provision for loan losses		9,556		9,808			9,171			9,611			9,805

Non-Interest Income
Services charges		407		353			470			394			445
Gain (loss) on sale of loans, net		26		(1	)		54			41			45
Loan servicing fees		1,563		1,519			1,553			1,521			1,486
Loan servicing right origination		346		228			7			(46	)		127
Income on OREO		40		26			83			96			45
Gain on sale of securities		341		-			-			-			-
Other		164		625			153			151			168
Total non-interest income		2,887		2,750			2,320			2,157			2,316

Non-Interest Expense
Employee compensation and benefits		4,199		4,482			4,059			4,394			4,114
Occupancy		283		389			245			332			278
Information processing		591		563			641			529			529
Professional fees		417		399			497			351			359
Business development		347		325			259			258			260
OREO expenses		121		51			106			46			152
Writedown of OREO		250		-			688			81			104
Net loss (gain) on sale of OREO		9		(136	)		(54	)		(28	)		(149	)
Depreciation and amortization		328		337			408			302			324
Other		901		895			689			758			966
Total non-interest expense		7,446		7,305			7,538			7,023			6,937
Income before income taxes		4,997		5,253			3,953			4,745			5,184
Income tax expense		1,293		1,491			1,123			1,228			1,334
NET INCOME	$	3,704	$	3,762		$	2,830		$	3,517		$	3,850

Basic	$	0.53	$	0.54		$	0.41		$	0.51		$	0.56
Diluted	$	0.53	$	0.54		$	0.40		$	0.50		$	0.55
Dividends declared	$	0.05	$	0.05		$	0.07		$	0.07		$	0.07

	For the Three Months Ended
	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
	(dollars in thousands, except share data)
Other Data:
Return on average assets		1.00	%		1.00	%		0.75	%		0.94	%		1.04	%
Return on average shareholders' equity		9.24	%		9.78	%		7.58	%		9.51	%		10.63	%
Return on average common shareholders' equity⁽¹⁾		9.41	%		9.99	%		7.70	%		9.75	%		10.96	%
Efficiency ratio ⁽¹⁾		55.38	%		55.91	%		52.85	%		54.62	%		55.18	%
Tangible common equity to tangible assets ⁽¹⁾		10.10	%		9.73	%		9.14	%		8.90	%		8.75	%

Common Share Data:
Net income from continuing operations	$	3,704		$	3,762		$	2,830		$	3,517		$	3,850
Less: Preferred stock dividends		118			117			111			106			99
Income available to common shareholders	$	3,586		$	3,645		$	2,719		$	3,411		$	3,751

Weighted average number of common shares issued		7,159,072			7,153,174			7,127,544			7,108,202			7,101,978
Less: Weighted average treasury shares		443,920			443,729			443,694			443,140			442,102
Less: Weighted average non- vested restricted units awards		30,483			16,260			28,701			29,537			30,692
Weighted average number of common shares outstanding		6,745,635			6,725,705			6,712,551			6,694,599			6,690,568
Effect of dilutive options		20,731			21,323			45,116			63,346			79,368
Weighted average number of common shares outstanding used to calculate diluted earnings per common share		6,766,366			6,747,028			6,757,667			6,757,945			6,769,936

	For the Three Months Ended
Non-GAAP Financial Measures:	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
	(dollars in thousands)
Return on average common shareholders' equity reconciliation:
Return on average shareholders' equity		9.24	%		9.78	%		7.58	%		9.51	%		10.63	%
Effect of excluding average preferred shareholders' equity		0.17	%		0.21	%		0.12	%		0.24	%		0.33	%
Return on average common shareholders' equity		9.41	%		9.99	%		7.70	%		9.75	%		10.96	%

Efficiency ratio GAAP to non-GAAP reconciliation:
Non-interest expense	$	7,446		$	7,305		$	7,538		$	7,023		$	6,937
Less: net gain (loss) on sales and write-downs of OREO		(259	)		136			(634	)		(53	)		45
Adjusted non-interest expense (non-GAAP)	$	7,187		$	7,441		$	6,904		$	6,970		$	6,982

Net interest income	$	10,432		$	10,560		$	10,743		$	10,604		$	10,338
Non-interest income		2,887			2,750			2,320			2,157			2,316
Less: net gain on sales of securities		(341	)		-			-			-			-
Operating revenue	$	12,978		$	13,310		$	13,063		$	12,761		$	12,654
Efficiency ratio		55.38	%		55.91	%		52.85	%		54.62	%		55.18	%

	June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018			June 30, 2018
	(dollars in thousands, except per share data)
Tangible book value per share and tangible common equity to tangible assets reconciliation:
Common equity	$	154,724		$	150,017		$	144,085		$	139,987		$	138,082
Less: Goodwill		5,038			5,038			5,038			5,038			5,038
Less: Core deposit intangible, net of amortization		354			430			513			603			701
Tangible common equity (non-GAAP)	$	149,332		$	144,549		$	138,534		$	134,346		$	132,343
Common shares outstanding		6,717,908			6,709,254			6,709,480			6,694,230			6,693,447
Tangible book value per share	$	22.23		$	21.54		$	20.65		$	20.07		$	19.77

Total assets	$	1,484,646		$	1,491,388		$	1,520,828		$	1,514,968		$	1,518,877
Less: Goodwill		5,038			5,038			5,038			5,038			5,038
Less: Core deposit intangible, net of amortization		354			430			513			603			701
Tangible assets (non-GAAP)	$	1,479,254		$	1,485,920		$	1,515,277		$	1,509,327		$	1,513,138
Tangible common equity to tangible assets		10.10	%		9.73	%		9.14	%		8.90	%		8.75	%

Adverse classified asset ratio:
Substandard loans	$	117,765		$	107,492		$	120,887		$	118,368		$	93,833
Less: Impaired performing restructured loans		(8,276	)		(6,382	)		(5,078	)		(13,657	)		(2,081	)
Net substandard loans	$	109,489		$	101,110		$	115,809		$	104,711		$	91,752
Other real estate owned		8,693			5,019			6,568			7,851			8,607
Substandard unused commitments		1,458			976			1,625			1,191			959
Less: Substandard government guarantees		(7,821	)		(5,864	)		(7,111	)		(9,374	)		(8,356	)
Total adverse classified assets (non-GAAP)	$	111,819		$	101,241		$	116,891		$	104,379		$	92,962

Total equity (Bank)	$	196,036		$	191,287		$	185,458		$	180,359		$	177,911
Accumulated other comprehensive loss (gain) on available for sale securities		(2,166	)		(436	)		2,221			4,152			2,795
Allowance for loan losses		16,258			17,493			16,505			16,143			15,129
Allowance for unused commitments		-			-			475			510			522
Adjusted total equity (non-GAAP)	$	210,128		$	208,344		$	204,659		$	201,164		$	196,357
Adverse classified asset ratio		53.21	%		48.59	%		57.12	%		51.89	%		47.34	%

	For the Three Months Ended
	June 30, 2019								March 31, 2019								June 30, 2018
	Average Balance⁽¹⁾			Income/ Expense		Yields/ Rates			Average Balance⁽¹⁾			Income/ Expense		Yields/ Rates			Average Balance⁽¹⁾			Income/ Expense		Yields/ Rates
	(dollars in thousands)
Assets
Investment securities	$	176,237		$	1,259		2.86	%	$	192,963		$	1,361		2.82	%	$	158,260		$	996		2.52	%
Loans ⁽²⁾		1,177,071			15,484		5.26	%		1,207,240			15,501		5.14	%		1,187,719			14,367		4.84	%
Interest bearing deposits due from other banks		73,769			465		2.52	%		36,227			264		2.92	%		100,646			400		1.59	%
Total interest-earning assets	$	1,427,077		$	17,208		4.82	%	$	1,436,430		$	17,126		4.77	%	$	1,446,625		$	15,763		4.36	%

Allowance for loan losses		(17,782	)							(17,005	)							(14,918	)
Other assets		76,806								78,654								57,878
Total assets	$	1,486,101							$	1,498,079							$	1,489,585

Liabilities
Savings, NOW, money market, interest checking	$	315,940		$	1,316		1.67	%	$	295,418		$	1,184		1.60	%	$	279,958		$	789		1.13	%
Time deposits		770,554			4,363		2.26	%		797,476			4,240		2.13	%		819,037			3,811		1.86	%
Total interest-bearing deposits	$	1,086,494		$	5,679		2.09	%	$	1,092,894		$	5,424		1.99	%	$	1,098,995		$	4,600		1.67	%
Other borrowings		1,204			13		4.47	%		844			11		5.27	%		1,167			14		4.79	%
FHLB advances		78,653			401		2.04	%		92,900			453		1.95	%		117,327			473		1.61	%
Junior subordinated debentures		44,762			683		6.11	%		44,606			678		6.08	%		25,547			338		5.29	%
Total interest-bearing liabilities	$	1,211,113		$	6,776		2.24	%	$	1,231,244		$	6,566		2.13	%	$	1,243,036		$	5,425		1.75	%

Non-interest-bearing deposits		102,432								101,532								93,876
Other liabilities		12,154								11,362								7,829
Total liabilities	$	1,325,699							$	1,344,138							$	1,344,741

Shareholders' equity		160,402								153,941								144,844
Total liabilities and equity	$	1,486,101							$	1,498,079							$	1,489,585

Net interest income				$	10,432							$	10,560							$	10,338
Interest rate spread ⁽³⁾							2.59	%							2.64	%							2.61	%
Net interest margin ⁽⁴⁾							2.92	%							2.94	%							2.87	%
Ratio of interest-earning assets to interest-bearing liabilities		1.18								1.17								1.16

	For the Six Months Ended
	June 30, 2019								June 30, 2018
	Average Balance⁽¹⁾			Income/ Expense		Yields/ Rates			Average Balance⁽¹⁾			Income/ Expense		Yields/ Rates
	(dollars in thousands)
Assets
Investment securities	$	186,076		$	2,620		2.82	%	$	147,553		$	1,785		2.42	%
Loans ⁽²⁾		1,192,073			30,985		5.20	%		1,180,294			28,057		4.75	%
Interest bearing deposits due from other banks		55,102			729		2.65	%		87,012			614		1.41	%
Total interest-earning assets	$	1,433,251		$	34,334		4.79	%	$	1,414,859		$	30,456		4.31	%

Allowance for loan losses		(17,396	)							(14,323	)
Other assets		76,613								52,395
Total assets	$	1,492,468							$	1,452,931

Liabilities
Savings, NOW, money market, interest checking	$	307,903			2,500		1.62	%	$	278,889			1,448		1.04	%
Time deposits		781,672			8,602		2.20	%		783,202			6,948		1.77	%
Total interest-bearing deposits	$	1,089,575		$	11,102		2.04	%	$	1,062,091		$	8,396		1.58	%
Other borrowings		1,025			25		4.80	%		1,226			30		4.94	%
FHLB advances		85,737			854		1.99	%		119,187			941		1.58	%
Junior subordinated debentures		44,742			1,361		6.09	%		20,566			481		4.68	%
Total interest-bearing liabilities	$	1,221,079		$	13,342		2.19	%	$	1,203,070		$	9,848		1.64	%

Non-interest-bearing deposits		102,050								98,728
Other liabilities		11,797								7,698
Total liabilities	$	1,334,926							$	1,309,496

Shareholders' equity		157,542								143,435
Total liabilities and equity	$	1,492,468							$	1,452,931

Net interest income				$	20,992							$	20,608
Interest rate spread ⁽³⁾							2.61	%							2.67	%
Net interest margin ⁽⁴⁾							2.93	%							2.91	%
Ratio of interest-earning assets to interest- bearing liabilities		1.17								1.18