EX-99.1 2 icbk-ex991_6.htm EX-99.1 icbk-ex991_6.htm

Exhibit 99.1


FOR IMMEDIATE RELEASE

COUNTY BANCORP, INC. ANNOUNCES FIRST QUARTER RESULTS

Focus remains on continued execution against strategic priorities, as well as swift and

deliberate actions to prioritize safety and effectively serve customers and communities

Highlights

 

•

Net loss of $5.2 million for the first quarter of 2020 or $0.78 diluted loss per share for the first quarter 2020

 

•

Net interest income decreased $740,000 during first quarter 2020 due to actions by the Federal Reserve in response to COVID-19

 

•

Goodwill impairment of $5.0 million or $0.74 per diluted share

 

•

COVID-19 qualitative adjustment of $2.0 million recognized through provision for loan losses for the first quarter 2020

 

•

Write-down on other real estate owned of $1.4 million during the first quarter 2020

 

•

Average loans sold and serviced increased $5.4 million and loan fees as a percentage of average loans sold and serviced increased 0.02% to 0.98% during the first quarter 2020

 

•

Client deposits (demand deposits, NOW, savings, money market accounts, and certificates of deposit) decreased $43.9 million or 5.3% largely due to seasonal fluctuations since December 31, 2019

 

•

Substandard loans decreased $14.3 million since December 31, 2019 due to $13.6 million in upgrades to watch

 

•

Submitted $104 million in Small Business Administration Paycheck Protection Loan applications which have been approved through April 29, 2020

 

•

Capital ratios remain strong with a Total Risk-Based Capital ratio of 18.0% and Tier 1 Leverage of 14.9%

 

Manitowoc, Wisconsin, April 30, 2020 — 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 results for the first quarter of 2020.  Net loss was $5.2 million, or $0.78 diluted loss per share, for the first quarter of 2020, compared to net income of $3.8 million, or $0.54 diluted earnings per share, for the first quarter of 2019.  Net loss included a $5.0 million goodwill impairment charge as a result of the uncertainty related to COVID-19 and its potential impact on future earnings, as well as overall bank valuations.  Excluding that charge, diluted loss would have been $0.04 per share.

Tim Schneider, President of County Bancorp, Inc., noted, “As a result of the swift and decisive actions we took in response to the pandemic, there were several pushes and pulls to our financials this quarter.  Those included a goodwill impairment primarily related to market changes, the addition of approximately $2.0 million in provisions for loan losses and some increased margin compression due to the impact of the pandemic, and a $1.4 million write-down on one OREO property due to an updated appraised value.  We also recently updated our capital stress testing and it showed that we have more than sufficient capital to maintain our well-capitalized status in a severe adverse stress scenario. Out of an abundance of caution, we have started to extend out our wholesale funding maturities to better manage future liquidity risk and rates up scenarios.”  

Schneider continued, “We prioritized our team’s safety and now have the large majority of our team working efficiently from their home offices, and have closed all locations except the drive-thrus at three of our branch locations.  Even with these disruptions, I am so proud of how our team came together and continued to safely and effectively serve our clients. Through April 29, 2020, we have processed 812 Paycheck Protection Loans (“PPP”) through the SBA applications, totaling $104 million and representing almost 13,000 jobs protected.  Our team is prepared to weather any future temporary disruptions that the pandemic may cause to our business operations and those of our customers.  Our capital ratios remain strong and we will continue to stay balanced in our capital allocation approach, which includes a continuation of our current dividend payout and common stock buyback plan.  Of note, during the first quarter, we were able to purchase 256,000 shares of common stock.”


Loans and Securities

Total loans decreased $23.3 million, or 2.3%, during the first quarter of 2020 and $170.5 million year-over-year, or 14.4%, to $1.0 billion.  The decrease in total loans in the first quarter of 2020 was due to loan paydowns and a continued focus on selling loans in the secondary market.  The decrease in total loans year-over-year was the result of a continued focus on long-term liquidity.  Loan participations the Company continued to service were $747.6 million at March 31, 2020, a decrease of $4.2 million or 0.6% compared to the fourth quarter of 2019, but an increase of $72.3 million, or 10.7%, year-over-year.  By increasing the amount of loans participated, the Company has been reducing credit risk from its balance sheet and increasing non-interest revenue streams.

During the first quarter of 2020, investments increased $87.4 million, or 55.1%, compared to December 31, 2019 due to deploying cash into securities.

Deposits

Total deposits at March 31, 2020 were $1.0 billion, a decrease of $81.5 million, or 7.4%, sequentially and $156.3 million, or 13.3%, year-over-year.  Client deposits (demand deposits, NOW accounts, savings accounts, money market accounts, and certificates of deposit) decreased $43.9 million, or 5.3%, sequentially and increased $32.1 million, or 4.2%, year-over-year.  The decrease in client deposits from the sequential quarter was driven by the timing of farmer milk check deposits in December 2019, as well as overall declines in money market account balances across all product lines.

During the first quarter of 2020, the Company took advantage of the Federal Reserve Bank’s interest rate cuts and increased borrowings from FHLB by $65.0 million, with an average rate of 0.77%.  The Company’s overall focus remains on funding loan growth with client deposits; however, these borrowings help reduce interest rate risk and our lower cost of funds.  Due to the increases in loan participations and client deposit growth discussed above, the Company decreased its dependence on brokered deposits and national certificates of deposit to $228.3 million at March 31, 2020.  This represents a decrease of $188.5 million, or 45.2%, from March 31, 2019.    


Net Interest Income and Margin

 

•

Net interest margin decreased both sequentially and year-over-year, due to actions taken by the Federal Reserve Bank related to COVID-19 during the first quarter of 2020 and the resulting decrease in rates across the yield curve.

 

 

•

Interest income on investment securities increased in the linked quarter, due to shifting balances from interest-bearing deposits with banks to investment securities.

 

 

•

Loan interest income decreased in the both linked and year-over-year periods as a result of the previously mentioned shift from loans held on balance sheet to loans sold and serviced.

 

 

•

Interest expense on savings, NOW, money market, and interest checking accounts decreased despite the increase in average balance both in the linked quarter and year-over year due to the market driven drop in interest rates which contributed to an overall lower cost of funds.

 

 

•

Interest expense on time deposits decreased in the linked quarter due to the Company’s continued focus on shifting away from brokered time deposit balances for funding. Year-over-year, time deposits also decreased due to the Company’s shift away from wholesale funding.

 

 

•

Interest expense on FHLB advances increased in the linked quarter due to the overall increase in volume this quarter as FHLB advance rates were more competitive than other forms of wholesale funding. Year-over-year, FHLB advances interest expense decreased due to the Company’s shift away from wholesale funding.

 

The table below presents the effects of changing rates and volumes on net interest income for the periods indicated.

 

Three Months Ended March 31, 2020 v.

Three Months Ended December 31, 2019

 

 

Three Months Ended March 31, 2020 v.

Three Months Ended March 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

 

$

239

 

 

$

(57

)

 

$

182

 

 

$

24

 

 

$

(96

)

 

$

(72

)

Loans

 

 

(415

)

 

 

(694

)

 

 

(1,109

)

 

 

(2,211

)

 

 

(708

)

 

 

(2,919

)

Federal funds sold and

   interest-bearing

   deposits with banks

 

 

(150

)

 

 

(67

)

 

 

(217

)

 

 

(144

)

 

 

104

 

 

 

(40

)

Total interest income

 

 

(326

)

 

 

(818

)

 

 

(1,144

)

 

 

(2,331

)

 

 

(700

)

 

 

(3,031

)

Interest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings, NOW, money market

   and interest checking

 

$

35

 

 

$

(137

)

 

$

(102

)

 

$

188

 

 

$

(599

)

 

$

(411

)

Time deposits

 

 

(264

)

 

 

(68

)

 

 

(332

)

 

 

(1,135

)

 

 

469

 

 

 

(666

)

Other borrowings

 

 

3

 

 

 

(1

)

 

 

2

 

 

 

(1

)

 

 

1

 

 

 

-

 

FHLB advances

 

 

39

 

 

 

(22

)

 

 

17

 

 

 

(157

)

 

 

(63

)

 

 

(220

)

Junior subordinated

   debentures

 

 

—

 

 

 

11

 

 

 

11

 

 

 

4

 

 

 

24

 

 

 

28

 

Total interest expense

 

$

(187

)

 

$

(217

)

 

$

(404

)

 

$

(1,101

)

 

$

(168

)

 

$

(1,269

)

Net interest income

 

$

(139

)

 

$

(601

)

 

$

(740

)

 

$

(1,230

)

 

$

(532

)

 

$

(1,762

)

The following tables set forth average balance sheets, average yields and rates, and income and expenses for the period indicated.

 

For the Three Months Ended

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

March 31, 2019

 

 

 

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

 

$

196,353

 

 

$

1,289

 

 

 

2.63

%

 

$

159,202

 

 

$

1,106

 

 

 

2.78

%

 

$

192,963

 

 

$

1,361

 

 

 

2.82

%

Loans (2)

 

 

1,028,637

 

 

 

12,582

 

 

 

4.89

%

 

 

1,061,432

 

 

 

13,691

 

 

 

5.16

%

 

 

1,207,240

 

 

 

15,501

 

 

 

5.14

%

Interest bearing deposits due from

   other banks

 

 

60,825

 

 

 

225

 

 

 

1.48

%

 

 

98,848

 

 

 

441

 

 

 

1.79

%

 

 

36,227

 

 

 

264

 

 

 

2.91

%

Total interest-earning assets

 

$

1,285,815

 

 

$

14,096

 

 

 

4.39

%

 

$

1,319,482

 

 

$

15,238

 

 

 

4.62

%

 

$

1,436,430

 

 

$

17,126

 

 

 

4.77

%

Allowance for loan losses

 

 

(15,330

)

 

 

 

 

 

 

 

 

 

 

(14,868

)

 

 

 

 

 

 

 

 

 

 

(17,005

)

 

 

 

 

 

 

 

 

Other assets

 

 

84,461

 

 

 

 

 

 

 

 

 

 

 

77,934

 

 

 

 

 

 

 

 

 

 

 

78,654

 

 

 

 

 

 

 

 

 

   Total assets

 

$

1,354,946

 

 

 

 

 

 

 

 

 

 

$

1,382,548

 

 

 

 

 

 

 

 

 

 

$

1,498,079

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings, NOW, money market,

   interest checking

 

$

334,740

 

 

$

774

 

 

 

0.92

%

 

$

322,629

 

 

$

876

 

 

 

1.09

%

 

$

295,418

 

 

$

1,184

 

 

 

1.60

%

Time deposits

 

 

613,753

 

 

 

3,574

 

 

 

2.33

%

 

 

658,864

 

 

 

3,905

 

 

 

2.37

%

 

 

797,476

 

 

 

4,240

 

 

 

2.13

%

Total interest-bearing deposits

 

$

948,493

 

 

$

4,348

 

 

 

1.83

%

 

$

981,493

 

 

$

4,781

 

 

 

1.95

%

 

$

1,092,894

 

 

$

5,424

 

 

 

1.99

%

Other borrowings

 

 

1,259

 

 

 

11

 

 

 

3.49

%

 

 

799

 

 

 

9

 

 

 

4.60

%

 

 

844

 

 

 

11

 

 

 

5.27

%

FHLB advances

 

 

56,708

 

 

 

233

 

 

 

1.65

%

 

 

44,400

 

 

 

216

 

 

 

1.95

%

 

 

92,900

 

 

 

453

 

 

 

1.95

%

Junior subordinated debentures

 

 

44,871

 

 

 

706

 

 

 

6.29

%

 

 

44,839

 

 

 

694

 

 

 

6.19

%

 

 

44,606

 

 

 

678

 

 

 

6.08

%

Total interest-bearing liabilities

 

$

1,051,331

 

 

$

5,298

 

 

 

2.02

%

 

$

1,071,531

 

 

$

5,700

 

 

 

2.13

%

 

$

1,231,244

 

 

$

6,566

 

 

 

2.13

%

Non-interest bearing deposits

 

 

113,351

 

 

 

 

 

 

 

 

 

 

 

123,541

 

 

 

 

 

 

 

 

 

 

 

101,532

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

16,877

 

 

 

 

 

 

 

 

 

 

 

16,749

 

 

 

 

 

 

 

 

 

 

 

11,362

 

 

 

 

 

 

 

 

 

   Total liabilities

 

$

1,181,559

 

 

 

 

 

 

 

 

 

 

$

1,211,821

 

 

 

 

 

 

 

 

 

 

$

1,344,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity

 

 

173,387

 

 

 

 

 

 

 

 

 

 

 

170,727

 

 

 

 

 

 

 

 

 

 

 

153,941

 

 

 

 

 

 

 

 

 

     Total liabilities and equity

 

$

1,354,946

 

 

 

 

 

 

 

 

 

 

$

1,382,548

 

 

 

 

 

 

 

 

 

 

$

1,498,079

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

 

 

$

8,798

 

 

 

 

 

 

 

 

 

 

$

9,538

 

 

 

 

 

 

 

 

 

 

$

10,560

 

 

 

 

 

Interest rate spread (3)

 

 

 

 

 

 

 

 

 

 

2.37

%

 

 

 

 

 

 

 

 

 

 

2.49

%

 

 

 

 

 

 

 

 

 

 

2.64

%

Net interest margin (4)

 

 

 

 

 

 

 

 

 

 

2.74

%

 

 

 

 

 

 

 

 

 

 

2.89

%

 

 

 

 

 

 

 

 

 

 

2.94

%

Ratio of interest-earning assets to

   interest-bearing liabilities

 

 

1.22

 

 

 

 

 

 

 

 

 

 

 

1.23

 

 

 

 

 

 

 

 

 

 

 

1.17

 

 

 

 

 

 

 

 

 

 

(1)

Average balances are calculated on amortized cost.

 

(2)

Includes loan fee income, nonaccruing loan balances, and interest received on such loans.

 

(3)

Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

 

(4)

Net interest margin represents net interest income divided by average total interest-earning assets.

 

 


Non-Interest Income

 

•

Loan servicing income increased in the linked quarter due to a 0.02% increase in loan servicing fees income spread during Q1 2020. Year-over-year, loan servicing fees increased due to a 0.07% increase in loan servicing fee spread and an increase in loans serviced.

 

•

Loan servicing right origination income decreased in the linked quarter due to the decreases in loans sold and serviced; however, the loan servicing rights as a percent of loans serviced increased by 4.6% due to our election to switch to fair value accounting versus amortized cost to better reflect shareholder value and the value of future revenue streams.

 

 

•

Other income decreased year-over-year due to a reduction of the allowance for unused commitments of $0.5 million during Q1 2019.  

 

 

For the Three Months Ended

 

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

 

(dollars in thousands)

 

     Non-Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges

 

$

342

 

 

$

549

 

 

$

348

 

 

$

407

 

 

$

353

 

Gain (loss) on sale of loans, net

 

 

38

 

 

 

34

 

 

 

87

 

 

 

26

 

 

 

(1

)

Loan servicing fees

 

 

1,831

 

 

 

1,778

 

 

 

1,677

 

 

 

1,563

 

 

 

1,519

 

Loan servicing right origination

 

 

289

 

 

 

1,146

 

 

 

1,741

 

 

 

346

 

 

 

228

 

Income on OREO

 

 

—

 

 

 

54

 

 

 

10

 

 

 

40

 

 

 

26

 

Gain on sale of securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

341

 

 

 

—

 

Other

 

 

203

 

 

 

161

 

 

 

171

 

 

 

164

 

 

 

625

 

Total non-interest income

 

$

2,703

 

 

$

3,722

 

 

$

4,034

 

 

$

2,887

 

 

$

2,750

 

 

 

For the Three Months Ended

 

 

 

March 31, 2020

 

 

December 31, 2019

 

 

September 30, 2019

 

 

June 30, 2019

 

 

March 31, 2019

 

 

 

(dollars in thousands)

 

Loan servicing rights, beginning of period

 

$

12,509

 

 

$

11,362

 

 

$

9,621

 

 

$

9,275

 

 

$

9,047

 

      Changes in loan servicing rights:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          Additions related to new loans

 

 

505

 

 

 

1,812

 

 

 

2,276

 

 

 

843

 

 

 

621

 

          Impairment due to prepayment

 

 

(142

)

 

 

(296

)

 

 

(198

)

 

 

(190

)

 

 

(73

)

          Amortization of existing asset

 

 

(73

)

 

 

(632

)

 

 

(584

)

 

 

(554

)

 

 

(550

)

          Reduction of valuation allowance

 

 

—

 

 

 

263

 

 

 

247

 

 

 

247

 

 

 

230

 

          Addition due to change in accounting principle

 

 

3,412

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

     Total loan servicing right origination income

 

 

3,702

 

 

 

1,147

 

 

 

1,741

 

 

 

346

 

 

 

228

 

Loan servicing rights, end of period

 

$

16,211

 

 

$

12,509

 

 

$

11,362

 

 

$

9,621

 

 

$

9,275

 

Loans serviced, end of period

 

 

747,553

 

 

 

751,738

 

 

 

736,823

 

 

 

695,629

 

 

 

675,268

 

Loan servicing rights as a % of loans serviced

 

 

2.17

%

 

 

1.66

%

 

 

1.54

%

 

 

1.38

%

 

 

1.37

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Total loan servicing fees

 

$

1,831

 

 

$

1,778

 

 

$

1,677

 

 

$

1,563

 

 

$

1,519

 

Average loans serviced

 

 

749,646

 

 

 

744,281

 

 

 

716,226

 

 

 

685,449

 

 

 

668,263

 

Annualized loan servicing fees as a

   % of average loans serviced

 

 

0.98

%

 

 

0.96

%

 

 

0.94

%

 

 

0.91

%

 

 

0.91

%

 

Non-Interest Expense

 

•

The write down of OREO in Q1 2020 was the result of an updated appraisal on a retail shopping center.

 

 

•

The goodwill impairment in Q1 2020 was due to the anticipated reduction in future earnings and a decrease in bank trading multiples resulting from COVID-19.

 

 

•

The decrease in employee compensation and benefits expense in the linked quarter was the result of higher

 

 

incentive compensation expense during Q4 2019.

 

 

•

The year-over-year increase in employee compensation and benefits expense was the result of a 5.1% increase in headcount and a $0.3 million increase in payroll taxes and options expense related to the 2019 incentive compensation that was paid during the first quarter of 2020.

 

 

•

The decrease in other non-interest expense in the linked quarter is the result of an impairment that was recognized in Q4 2019 for an investment in a historical tax credit project that did not recur in Q1 2020.

 

 

 

For the Three Months Ended

 

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

 

(dollars in thousands, except per share data)

 

     Non-Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and

   benefits

 

$

5,260

 

 

$

5,696

 

 

$

4,735

 

 

$

4,199

 

 

$

4,482

 

Occupancy

 

 

354

 

 

 

417

 

 

 

313

 

 

 

283

 

 

 

389

 

Information processing

 

 

670

 

 

 

645

 

 

 

683

 

 

 

591

 

 

 

563

 

Professional fees

 

 

401

 

 

 

371

 

 

 

483

 

 

 

417

 

 

 

399

 

Business development

 

 

366

 

 

 

335

 

 

 

351

 

 

 

347

 

 

 

325

 

OREO expenses

 

 

116

 

 

 

59

 

 

 

57

 

 

 

121

 

 

 

51

 

      Writedown of OREO

 

 

1,360

 

 

 

376

 

 

 

—

 

 

 

250

 

 

 

—

 

      Net loss (gain) on sale of OREO

 

 

4

 

 

 

(231

)

 

 

160

 

 

 

9

 

 

 

(136

)

      Depreciation and amortization

 

 

301

 

 

 

319

 

 

 

319

 

 

 

328

 

 

 

337

 

      Goodwill impairment

 

 

5,038

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other

 

 

1,148

 

 

 

2,278

 

 

 

567

 

 

 

901

 

 

 

895

 

Total non-interest expense

 

$

15,018

 

 

$

10,265

 

 

$

7,668

 

 

$

7,446

 

 

$

7,305

 

Asset Quality

 

•

The decrease in substandard loans and the adverse classified asset ratio in the linked quarter were primarily due to the improved milk prices in 2019 and 2020 prior to the COVID-19 pandemic which caused the average 12-month future price of Class III milk to drop by 17.8% on the Chicago Mercantile Exchange from December 31, 2019 to March 31, 2020.  

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

 

(dollars in thousands)

 

Loans by risk category(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Sound/Acceptable/Satisfactory/

        Low Satisfactory

 

$

706,247

 

 

$

724,444

 

 

$

771,567

 

 

$

837,094

 

 

$

896,933

 

     Watch

 

 

219,459

 

 

 

216,098

 

 

 

202,615

 

 

 

175,995

 

 

 

180,419

 

     Special Mention

 

 

15,036

 

 

 

9,239

 

 

 

9,346

 

 

 

25,254

 

 

 

4,501

 

     Substandard Performing

 

 

34,179

 

 

 

49,774

 

 

 

71,133

 

 

 

83,992

 

 

 

70,060

 

     Substandard Impaired

 

 

37,515

 

 

 

36,218

 

 

 

26,106

 

 

 

25,497

 

 

 

31,050

 

        Total loans

 

$

1,012,436

 

 

$

1,035,773

 

 

$

1,080,767

 

 

$

1,147,832

 

 

$

1,182,963

 

Adverse classified asset ratio (2)

 

 

32.35

%

 

 

39.85

%

 

 

45.67

%

 

 

53.21

%

 

 

48.59

%

 

(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

 

•

Non-performing assets decreased in the linked quarter by $1.2 million. Year-over-year, non-performing assets increased due to a $7.8 million increase in non-accrual agricultural loans, which was partially offset by a $1.6 million improvement in commercial non-accrual loans and a $1.8 million decrease in OREO properties.

 

•

A provision for loan losses of $2.2 million was recorded for the three months ended March 31, 2020 compared to a provision of $0.8 million for the three months ended March 31, 2019.  The increase in provision is the result of the additional qualitative factor of $2.0 million related to customers that are at a higher risk of being impacted by COVID-19 based on the information currently known.  We will continue to evaluate the impact of COVID-19 and the unprecedented Federal support of small businesses as we estimate provisions in future periods.

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

 

(dollars in thousands)

 

Non-Performing Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Nonaccrual loans

 

$

32,051

 

 

$

30,968

 

 

$

20,776

 

 

$

20,096

 

 

$

25,880

 

    Other real estate owned

 

 

3,247

 

 

 

5,521

 

 

 

7,252

 

 

 

8,693

 

 

 

5,019

 

      Total non-performing assets

 

$

35,298

 

 

$

36,489

 

 

$

28,028

 

 

$

28,789

 

 

$

30,899

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Performing TDRs not on

       nonaccrual

 

$

21,853

 

 

$

21,784

 

 

$

28,520

 

 

$

28,892

 

 

$

21,111

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-performing assets as a % of total

   loans

 

 

3.49

%

 

 

3.52

%

 

 

2.59

%

 

 

2.51

%

 

 

2.61

%

Non-performing assets as a % of total

   assets

 

 

2.61

%

 

 

2.65

%

 

 

1.98

%

 

 

1.94

%

 

 

2.07

%

Allowance for loan losses as a % of

   total loans

 

 

1.73

%

 

 

1.47

%

 

 

1.39

%

 

 

1.42

%

 

 

1.48

%

Net charge-offs (recoveries) quarter-

   to-date

 

$

(62

)

 

$

(253

)

 

$

39

 

 

$

2,111

 

 

$

(236

)

Conference Call

The Company will host an earnings call tomorrow, May 1, 2020, at 8:30 a.m., CDT, conducted by Timothy J. Schneider, President, and Glen L. Stiteley, CFO.  The earnings call will be broadcast over the Internet on the Company’s website at 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 May 1, 2021, 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.  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 Contact

Glen L. Stiteley

EVP - CFO, Investors Community Bank

Phone: (920) 686-5658

Email: gstiteley@icbk.com

County Bancorp, Inc.

Consolidated Financial Summary

(Unaudited)

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

 

(dollars in thousands, except per share data)

 

Period-End Balance Sheet:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Cash and cash equivalents

 

$

21,545

 

 

$

129,011

 

 

$

120,845

 

 

$

116,251

 

 

$

62,426

 

    Securities available for sale, at fair

       value

 

 

246,148

 

 

 

158,733

 

 

 

154,962

 

 

 

158,561

 

 

 

192,210

 

     Loans held for sale

 

 

14,388

 

 

 

2,151

 

 

 

4,192

 

 

 

7,448

 

 

 

2,750

 

     Agricultural loans

 

 

642,066

 

 

 

659,725

 

 

 

673,742

 

 

 

713,602

 

 

 

722,107

 

     Commercial loans

 

 

325,310

 

 

 

331,723

 

 

 

360,132

 

 

 

383,542

 

 

 

403,490

 

     Multi-family real estate loans

 

 

42,198

 

 

 

41,070

 

 

 

43,487

 

 

 

46,683

 

 

 

52,974

 

     Residential real estate loans

 

 

2,753

 

 

 

2,888

 

 

 

3,183

 

 

 

3,753

 

 

 

4,172

 

     Installment and consumer other

 

 

109

 

 

 

367

 

 

 

223

 

 

 

252

 

 

 

220

 

        Total loans

 

 

1,012,436

 

 

 

1,035,773

 

 

 

1,080,767

 

 

 

1,147,832

 

 

 

1,182,963

 

    Allowance for loan losses

 

 

(17,547

)

 

 

(15,267

)

 

 

(15,065

)

 

 

(16,258

)

 

 

(17,493

)

        Net loans

 

 

994,889

 

 

 

1,020,506

 

 

 

1,065,702

 

 

 

1,131,574

 

 

 

1,165,470

 

    Other assets

 

 

78,004

 

 

 

68,378

 

 

 

69,263

 

 

 

70,812

 

 

 

68,532

 

        Total Assets

 

$

1,354,974

 

 

$

1,378,779

 

 

$

1,414,964

 

 

$

1,484,646

 

 

$

1,491,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Demand deposits

 

$

117,434

 

 

$

138,489

 

 

$

117,224

 

 

$

111,022

 

 

$

101,434

 

     NOW accounts and interest checking

 

 

64,873

 

 

 

63,781

 

 

 

56,637

 

 

 

54,253

 

 

 

49,902

 

     Savings

 

 

6,566

 

 

 

15,708

 

 

 

6,981

 

 

 

6,621

 

 

 

6,210

 

     Money market accounts

 

 

237,889

 

 

 

242,539

 

 

 

248,608

 

 

 

239,337

 

 

 

225,975

 

     Time deposits

 

 

364,930

 

 

 

375,100

 

 

 

388,759

 

 

 

387,899

 

 

 

376,034

 

     Brokered deposits

 

 

161,882

 

 

 

166,340

 

 

 

206,474

 

 

 

256,475

 

 

 

269,917

 

     National time deposits

 

 

66,386

 

 

 

99,485

 

 

 

118,070

 

 

 

149,570

 

 

 

146,805

 

        Total deposits

 

 

1,019,960

 

 

 

1,101,442

 

 

 

1,142,753

 

 

 

1,205,177

 

 

 

1,176,277

 

     FHLB advances

 

 

109,400

 

 

 

44,400

 

 

 

44,400

 

 

 

59,400

 

 

 

100,400

 

     Subordinated debentures

 

 

44,896

 

 

 

44,858

 

 

 

44,820

 

 

 

44,781

 

 

 

44,742

 

     Other liabilities

 

 

15,672

 

 

 

16,050

 

 

 

14,239

 

 

 

12,564

 

 

 

11,952

 

        Total Liabilities

 

 

1,189,928

 

 

 

1,206,750

 

 

 

1,246,212

 

 

 

1,321,922

 

 

 

1,333,371

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Shareholders' equity

 

 

165,046

 

 

 

172,029

 

 

 

168,752

 

 

 

162,724

 

 

 

158,017

 

        Total Liabilities and Shareholders'

           Equity

 

$

1,354,974

 

 

$

1,378,779

 

 

$

1,414,964

 

 

$

1,484,646

 

 

$

1,491,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock Price Information:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    High - Quarter-to-date

 

$

27.19

 

 

$

27.98

 

 

$

20.99

 

 

$

18.92

 

 

$

19.69

 

    Low - Quarter-to-date

 

$

13.55

 

 

$

18.76

 

 

$

16.80

 

 

$

16.24

 

 

$

16.74

 

    Market price - Quarter-end

 

$

18.50

 

 

$

25.63

 

 

$

19.62

 

 

$

17.09

 

 

$

17.60

 

    Book value per share

 

$

24.17

 

 

$

24.32

 

 

$

23.89

 

 

$

23.03

 

 

$

22.36

 

    Tangible book value per share (1)

 

$

24.15

 

 

$

23.58

 

 

$

23.10

 

 

$

22.23

 

 

$

21.54

 

    Common shares outstanding

 

 

6,496,790

 

 

 

6,734,132

 

 

 

6,727,908

 

 

 

6,717,908

 

 

 

6,709,254

 

 

(1)

This is a non-GAAP financial measure.  A reconciliation to GAAP is included below.

 

 

 

 

 

For the Three Months Ended

 

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

 

(dollars in thousands, except per share data)

 

Selected Income Statement Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Interest and Dividend Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

 

12,582

 

 

$

13,691

 

 

$

15,030

 

 

$

15,484

 

 

$

15,501

 

Taxable securities

 

 

1,282

 

 

 

1,106

 

 

 

1,117

 

 

 

1,177

 

 

 

1,186

 

Tax-exempt securities

 

 

6

 

 

 

—

 

 

 

—

 

 

 

82

 

 

 

175

 

Federal funds sold and other

 

 

225

 

 

 

442

 

 

 

612

 

 

 

465

 

 

 

264

 

Total interest and dividend

   income

 

 

14,095

 

 

 

15,239

 

 

 

16,759

 

 

 

17,208

 

 

 

17,126

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

4,347

 

 

 

4,781

 

 

 

5,574

 

 

 

5,678

 

 

 

5,424

 

FHLB advances and other

   borrowed funds

 

 

244

 

 

 

225

 

 

 

246

 

 

 

415

 

 

 

464

 

Subordinated debentures

 

 

706

 

 

 

695

 

 

 

687

 

 

 

683

 

 

 

678

 

Total interest expense

 

 

5,297

 

 

 

5,701

 

 

 

6,507

 

 

 

6,776

 

 

 

6,566

 

Net interest income

 

 

8,798

 

 

 

9,538

 

 

 

10,252

 

 

 

10,432

 

 

 

10,560

 

Provision for loan losses

 

 

2,218

 

 

 

(51

)

 

 

(1,154

)

 

 

876

 

 

 

752

 

Net interest income after provision

   for loan losses

 

 

6,580

 

 

 

9,589

 

 

 

11,406

 

 

 

9,556

 

 

 

9,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Non-Interest Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services charges

 

 

342

 

 

 

549

 

 

 

348

 

 

 

407

 

 

 

353

 

Gain (loss) on sale of loans, net

 

 

38

 

 

 

34

 

 

 

87

 

 

 

26

 

 

 

(1

)

Loan servicing fees

 

 

1,831

 

 

 

1,778

 

 

 

1,677

 

 

 

1,563

 

 

 

1,519

 

Loan servicing right origination

 

 

289

 

 

 

1,146

 

 

 

1,741

 

 

 

346

 

 

 

228

 

Income on OREO

 

 

—

 

 

 

54

 

 

 

10

 

 

 

40

 

 

 

26

 

Gain on sale of securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

341

 

 

 

—

 

Other

 

 

203

 

 

 

161

 

 

 

171

 

 

 

164

 

 

 

625

 

Total non-interest income

 

 

2,703

 

 

 

3,722

 

 

 

4,034

 

 

 

2,887

 

 

 

2,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Non-Interest Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and

   benefits

 

 

5,260

 

 

 

5,696

 

 

 

4,735

 

 

 

4,199

 

 

 

4,482

 

Occupancy

 

 

354

 

 

 

417

 

 

 

313

 

 

 

283

 

 

 

389

 

Information processing

 

 

670

 

 

 

645

 

 

 

683

 

 

 

591

 

 

 

563

 

Professional fees

 

 

401

 

 

 

371

 

 

 

483

 

 

 

417

 

 

 

399

 

Business development

 

 

366

 

 

 

335

 

 

 

351

 

 

 

347

 

 

 

325

 

OREO expenses

 

 

116

 

 

 

59

 

 

 

57

 

 

 

121

 

 

 

51

 

Writedown of OREO

 

 

1,360

 

 

 

376

 

 

 

—

 

 

 

250

 

 

 

—

 

Net loss (gain) on sale of OREO

 

 

4

 

 

 

(231

)

 

 

160

 

 

 

9

 

 

 

(136

)

Depreciation and amortization

 

 

301

 

 

 

319

 

 

 

319

 

 

 

328

 

 

 

337

 

Goodwill impairment

 

 

5,038

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other

 

 

1,148

 

 

 

2,278

 

 

 

567

 

 

 

901

 

 

 

895

 

Total non-interest expense

 

 

15,018

 

 

 

10,265

 

 

 

7,668

 

 

 

7,446

 

 

 

7,305

 

        Income before income taxes

 

 

(5,735

)

 

 

3,046

 

 

 

7,772

 

 

 

4,997

 

 

 

5,253

 

Income tax expense

 

 

(547

)

 

 

(258

)

 

 

2,090

 

 

 

1,293

 

 

 

1,491

 

        NET INCOME

 

$

(5,188

)

 

$

3,304

 

 

$

5,682

 

 

$

3,704

 

 

$

3,762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Basic

 

$

(0.79

)

 

$

0.47

 

 

$

0.82

 

 

$

0.53

 

 

$

0.54

 

    Diluted

 

$

(0.78

)

 

$

0.47

 

 

$

0.82

 

 

$

0.53

 

 

$

0.54

 

    Dividends declared

 

$

0.07

 

 

$

0.05

 

 

$

0.05

 

 

$

0.05

 

 

$

0.05

 

 

 

For the Three Months Ended

 

 

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

 

(dollars in thousands, except share data)

 

Other Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Return on average assets(1)

 

 

(1.53

)%

 

 

0.96

%

 

 

1.57

%

 

 

1.00

%

 

 

1.00

%

    Return on average

       shareholders' equity(1)

 

 

(11.97

)%

 

 

7.74

%

 

 

13.73

%

 

 

9.24

%

 

 

9.78

%

    Return on average common

       shareholders' equity (1)(2)

 

 

(12.81

)%

 

 

7.83

%

 

 

14.14

%

 

 

9.41

%

 

 

9.99

%

    Efficiency ratio (1)(2)

 

 

74.92

%

 

 

76.32

%

 

 

52.55

%

 

 

55.38

%

 

 

55.91

%

    Tangible common equity to

       tangible assets (2)

 

 

11.58

%

 

 

11.54

%

 

 

11.03

%

 

 

10.10

%

 

 

9.73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Net income from continuing

       operations

 

$

(5,188

)

 

$

3,304

 

 

$

5,682

 

 

$

3,704

 

 

$

3,762

 

   Less:  Preferred stock

      dividends

 

 

108

 

 

 

117

 

 

 

120

 

 

 

118

 

 

 

117

 

     Income available to common

        shareholders

 

$

(5,296

)

 

$

3,187

 

 

$

5,562

 

 

$

3,586

 

 

$

3,645

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Weighted average number of

      common shares issued

 

 

7,182,945

 

 

 

7,173,290

 

 

 

7,168,785

 

 

 

7,159,072

 

 

 

7,153,174

 

   Less: Weighted average

      treasury shares

 

 

518,740

 

 

 

443,920

 

 

 

443,920

 

 

 

443,920

 

 

 

443,729

 

   Plus: Weighted average non-

      vested restricted stock units

 

 

39,785

 

 

 

32,125

 

 

 

32,125

 

 

 

30,483

 

 

 

16,260

 

   Weighted average number of

      common shares outstanding

 

 

6,703,990

 

 

 

6,761,495

 

 

 

6,756,990

 

 

 

6,745,635

 

 

 

6,725,705

 

   Effect of dilutive options

 

 

49,072

 

 

 

44,630

 

 

 

19,160

 

 

 

20,731

 

 

 

21,323

 

     Weighted average number

         of common shares

         outstanding used to

         calculate diluted earnings

         per common share

 

 

6,753,062

 

 

 

6,806,125

 

 

 

6,776,150

 

 

 

6,766,366

 

 

 

6,747,028

 

 

 

 

(1)

Annualized

 

(2)

This is a non-GAAP financial measure.  A reconciliation to GAAP is included below.

 

 

For the Three Months Ended

 

Non-GAAP Financial

   Measures:

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 31,

2019

 

 

 

(dollars in thousands)

 

Return on average common

   shareholders' equity

   reconciliation(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Return on average

       shareholders' equity

 

 

(11.97

)%

 

 

7.74

%

 

 

13.73

%

 

 

9.24

%

 

 

9.78

%

    Effect of excluding average

       preferred shareholders'

       equity

 

 

(0.84

)%

 

 

0.09

%

 

 

0.41

%

 

 

0.17

%

 

 

0.21

%

       Return on average common

          shareholders' equity

 

 

(12.81

)%

 

 

7.83

%

 

 

14.14

%

 

 

9.41

%

 

 

9.99

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio GAAP to

   non-GAAP reconciliation(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Non-interest expense

 

$

15,018

 

 

$

10,265

 

 

$

7,668

 

 

$

7,446

 

 

$

7,305

 

    Less: goodwill impairment

 

 

(5,038

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

    Less: net gain (loss) on sales

       and write-downs of OREO

 

 

(1,364

)

 

 

(145

)

 

 

(160

)

 

 

(259

)

 

 

136

 

       Adjusted non-interest

          expense (non-GAAP)

 

$

8,616

 

 

$

10,120

 

 

$

7,508

 

 

$

7,187

 

 

$

7,441

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Net interest income

 

$

8,798

 

 

$

9,538

 

 

$

10,252

 

 

$

10,432

 

 

$

10,560

 

    Non-interest income

 

 

2,703

 

 

 

3,722

 

 

 

4,034

 

 

 

2,887

 

 

 

2,750

 

    Less: net gain on sales of

       securities

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(341

)

 

 

—

 

    Operating revenue

 

$

11,501

 

 

$

13,260

 

 

$

14,286

 

 

$

12,978

 

 

$

13,310

 

       Efficiency ratio

 

 

74.92

%

 

 

76.32

%

 

 

52.55

%

 

 

55.38

%

 

 

55.91

%

 

 

(1)

Management uses the return on average common shareholders’ equity in order 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.

 

Non-GAAP Financial

   Measures:

 

March 31,

2020

 

 

December 31,

2019

 

 

September 30,

2019

 

 

June 30,

2019

 

 

March 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

 

$

157,046

 

 

$

164,029

 

 

$

160,752

 

 

$

154,724

 

 

$

150,017

 

    Less: Goodwill

 

 

—

 

 

 

5,038

 

 

 

5,038

 

 

 

5,038

 

 

 

5,038

 

    Less: Core deposit intangible, net of

       amortization

 

 

171

 

 

 

225

 

 

 

286

 

 

 

354

 

 

 

430

 

       Tangible common equity

          (non-GAAP)

 

$

156,875

 

 

$

158,766

 

 

$

155,428

 

 

$

149,332

 

 

$

144,549

 

   Common shares outstanding

 

 

6,496,790

 

 

 

6,734,132

 

 

 

6,727,908

 

 

 

6,717,908

 

 

 

6,709,254

 

   Tangible book value per share

 

$

24.15

 

 

$

23.58

 

 

$

23.10

 

 

$

22.23

 

 

$

21.54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    Total assets

 

$

1,354,974

 

 

$

1,378,779

 

 

$

1,414,964

 

 

$

1,484,646

 

 

$

1,491,388

 

    Less: Goodwill

 

 

—

 

 

 

5,038

 

 

 

5,038

 

 

 

5,038

 

 

 

5,038

 

    Less: Core deposit intangible, net of

       amortization

 

 

171

 

 

 

225

 

 

 

286

 

 

 

603

 

 

 

701

 

    Tangible assets (non-GAAP)

 

$

1,354,803

 

 

$

1,373,516

 

 

$

1,409,640

 

 

$

1,479,005

 

 

$

1,485,649

 

      Tangible common equity to tangible

         assets

 

 

11.58

%

 

 

11.56

%

 

 

11.03

%

 

 

10.10

%

 

 

9.73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adverse classified asset ratio(2):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Substandard loans

 

$

71,694

 

 

$

85,992

 

 

$

97,239

 

 

$

109,489

 

 

$

101,110

 

   Other real estate owned

 

 

3,247

 

 

 

5,521

 

 

 

7,252

 

 

 

8,693

 

 

 

5,019

 

   Substandard unused commitments

 

 

2,840

 

 

 

2,849

 

 

 

991

 

 

 

1,458

 

 

 

976

 

   Less: Substandard government

      guarantees

 

 

(7,699

)

 

 

(7,892

)

 

 

(7,746

)

 

 

(7,821

)

 

 

(5,864

)

       Total adverse classified assets

          (non-GAAP)

 

$

70,082

 

 

$

86,470

 

 

$

97,736

 

 

$

111,819

 

 

$

101,241

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   Total equity (Bank)

 

$

204,089

 

 

$

204,240

 

 

$

201,967

 

 

$

196,036

 

 

$

191,287

 

   Accumulated other comprehensive loss

      (gain) on available for sale securities

 

 

(5,012

)

 

 

(2,505

)

 

 

(3,016

)

 

 

(2,166

)

 

 

(436

)

    Allowance for loan losses

 

 

17,547

 

 

 

15,267

 

 

 

15,065

 

 

 

16,258

 

 

 

17,493

 

       Adjusted total equity (non-GAAP)

 

$

216,624

 

 

$

217,002

 

 

$

214,016

 

 

$

210,128

 

 

$

208,344

 

         Adverse classified asset ratio

 

 

32.35

%

 

 

39.85

%

 

 

45.67

%

 

 

53.21

%

 

 

48.59

%

 

 

(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.