Q2 Highlights
- Net Income of $2.2 million
- Return on average assets of 1.14%
- 37.4% decrease in other real estate owned
MANITOWOC, Wis., July 22, 2015 (GLOBE NEWSWIRE) -- County Bancorp, Inc. (NASDAQ:ICBK) today reported second quarter 2015 net income of $2.2 million. Earnings for the six months ended June 30, were $4.7 million in 2015 compared to $3.9 million for the same period in 2014. This represents a return on average assets of 1.21% for the six months ended June 30, 2015 compared to 1.03% for the first half of 2014.
“We attribute our strong second quarter earnings to steady net interest margins in this highly competitive loan market,” said Timothy J. Schneider, President of County Bancorp, Inc. and CEO of Investors Community Bank. “We were also able to increase non-interest income, primarily from the sale of agricultural loans and Farm Service Agency Government Guaranteed loans, which has helped us maintain a solid efficiency ratio. In addition, reductions in other real estate owned, have also contributed to our bottom line. We are well positioned for growth and continue to seek additional business banking talent as well as strategic acquisition opportunities.”
Total assets of $781.1 million at June 30, 2015 were similar to the first quarter ended March 31, 2015 of $781.4 million. Total loans increased $19.3 million or 3.0% to $654.4 million at June 30, 2015 from $635.1 million at March 31, 2015. This increased loan demand was funded by deploying cash and cash equivalents.
Non-performing assets improved 28.1% to $18.3 million at June 30, 2015 from $25.4 million at June 30, 2014. The largest improvement was in other real estate owned which declined from $11.4 million at June 30, 2014 to $3.2 million at June 30, 2015. Non-performing assets increased slightly by $0.3 million from the prior quarter. The decrease in other real estate owned was offset by an increase in nonaccrual loans.
Net income for the quarters ended June 30, 2015 and 2014 were both $2.2 million. This represents a return on average assets of 1.14% for the three months ended June 30, 2015 compared to 1.16% for the three months ended June 30, 2014. Net interest margin increased to 3.34% for the three months ended June 30, 2015, compared to 3.27% for the three months ended June 30, 2014. Despite similar earnings, diluted earnings per share decreased to $0.36 for the three months ended June 30, 2015 from $0.45 at June 30, 2014, as the result of the 1,357,000 shares that were issued during our initial public offering in January, 2015.
Net income for the six months ended June 30, 2015 was $4.7 million compared to $3.9 million for the six months ended June 30, 2014. This represents year-over-year growth of 23.0 % which was primarily driven by a $1.1 million increase in net interest income and a $0.5 million recovery of loan losses offset in part by increased non-interest operating expenses including costs associated with being a public company.
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 and Stevens Point, and our loan production offices in Darlington, Eau Claire, and Fond du Lac.
Forward-Looking Statements
This press release includes "forward-looking statements”. 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 information presented in this press release is 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. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "comfortable with," "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 information contained in this press release include those identified in County Bancorp, Inc.’s most recent annual report on Form 10-K and subsequent SEC filings. Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
County Bancorp, Inc.
Consolidated Financial Summary (Unaudited)
| June 30, 2015 | March 31, 2015 | June 30, 2014 | ||||||||||||||
| Selected Balance Sheet Data: | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Total assets | $ | 781,117 | $ | 781,408 | $ | 757,736 | ||||||||||
| Total loans | 654,389 | 635,067 | 585,993 | |||||||||||||
| Allowance for loan losses | 9,897 | 10,269 | 10,556 | |||||||||||||
| Deposits | 608,571 | 608,441 | 620,638 | |||||||||||||
| Shareholders' equity | 101,024 | 99,544 | 75,791 | |||||||||||||
| Common equity | 93,024 | 91,544 | 67,791 | |||||||||||||
| Stock Price Information: | ||||||||||||||||
| High | $ | 20.33 | $ | 21.70 | N/A | |||||||||||
| Low | $ | 17.90 | $ | 16.76 | N/A | |||||||||||
| Market value (2015)/Book value (2014) per common share | $ | 19.00 | $ | 19.68 | $ | 15.19 | ||||||||||
| Common shares outstanding | 5,734 | 5,734 | 4,464 | |||||||||||||
| Non-Performing Assets: | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| Nonaccrual loans | $ | 15,098 | $ | 12,834 | $ | 14,004 | ||||||||||
| Other real estate owned | 3,211 | 5,128 | 11,445 | |||||||||||||
| Total non-performing assets | $ | 18,309 | $ | 17,962 | $ | 25,449 | ||||||||||
| Restructured loans not on nonaccrual | $ | 820 | $ | 826 | $ | 963 | ||||||||||
| Non-performing assets as a % of total loans | 2.80 | % | 2.83 | % | 4.34 | % | ||||||||||
| Non-performing assets as a % of total assets | 2.34 | % | 2.30 | % | 3.36 | % | ||||||||||
| Allowance for loan losses as a % of nonperforming assets | 54.06 | % | 57.17 | % | 41.48 | % | ||||||||||
| Allowance for loan losses as a % of total loans | 1.51 | % | 1.62 | % | 1.80 | % | ||||||||||
| Net charge-off (recoveries) year-to-date | 248 | (268 | ) | (61 | ) | |||||||||||
| Provision for (recovery of) loan loss year-to-date | (458 | ) | (602 | ) | - | |||||||||||
| For the three months ended | For the six months ended | |||||||||||||||
| June 30, 2015 | June 30, 2014 | June 30, 2015 | June 30, 2014 | |||||||||||||
| Selected Income Statement Data: | ||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||
| Net interest income | $ | 6,225 | $ | 5,830 | $ | 12,390 | $ | 11,294 | ||||||||
| Provision for (recovery of ) loan losses | 144 | - | (458 | ) | - | |||||||||||
| Net interest income after provision for (recovery of) loan losses | 6,081 | 5,830 | 12,848 | 11,294 | ||||||||||||
| Non-interest income | 1,713 | 1,559 | 3,587 | 3,369 | ||||||||||||
| Non-interest expense | 4,230 | 3,890 | 8,848 | 8,471 | ||||||||||||
| Income tax expense | 1,345 | 1,332 | 2,843 | 2,335 | ||||||||||||
| Net income | $ | 2,219 | $ | 2,167 | $ | 4,744 | $ | 3,857 | ||||||||
| Return on average assets | 1.14 | % | 1.16 | % | 1.21 | % | 1.03 | % | ||||||||
| Return on average shareholders' equity | 7.66 | % | 9.66 | % | 8.41 | % | 8.69 | % | ||||||||
| Return on average common shareholders' equity | 9.00 | % | 12.28 | % | 10.01 | % | 11.01 | % | ||||||||
| Efficiency ratio | 54.38 | % | 51.81 | % | 52.45 | % | 52.68 | % | ||||||||
| Per Common Share Data: | ||||||||||||||||
| Basic | $ | 0.36 | $ | 0.46 | $ | 0.80 | $ | 0.81 | ||||||||
| Diluted | $ | 0.36 | $ | 0.45 | $ | 0.79 | $ | 0.79 | ||||||||
| Dividends declared | $ | 0.04 | $ | - | $ | 0.08 | $ | - | ||||||||
| Non interest income: | ||||||||||||||||
| Service charges | $ | 286 | $ | 76 | $ | 506 | $ | 171 | ||||||||
| Loan servicing fees | 1,221 | 1,174 | 2,412 | 2,335 | ||||||||||||
| Loan servicing rights | (35 | ) | (106 | ) | 26 | 32 | ||||||||||
| Gain on sale of loans | 29 | 94 | 122 | 182 | ||||||||||||
| Income on ORE | 96 | 198 | 210 | 409 | ||||||||||||
| Other | 116 | 123 | 311 | 240 | ||||||||||||
| Total | $ | 1,713 | $ | 1,559 | $ | 3,587 | $ | 3,369 | ||||||||
| Non-interest expense: | ||||||||||||||||
| Employee compensation and benefits | $ | 2,869 | $ | 2,477 | $ | 5,589 | $ | 5,058 | ||||||||
| Occupancy | 79 | 74 | 160 | 154 | ||||||||||||
| Information processing | 178 | 136 | 344 | 280 | ||||||||||||
| Professional fees | 161 | 194 | 387 | 353 | ||||||||||||
| FDIC assessment | 122 | 126 | 220 | 276 | ||||||||||||
| ORE expenses | 57 | 234 | 140 | 494 | ||||||||||||
| Writedown of ORE | - | - | 182 | 685 | ||||||||||||
| Net loss/(gain) on ORE | (86 | ) | 62 | 287 | 62 | |||||||||||
| Business development | 115 | 99 | 224 | 199 | ||||||||||||
| Other | 735 | 488 | 1,315 | 910 | ||||||||||||
| Total | $ | 4,230 | $ | 3,890 | $ | 8,848 | $ | 8,471 | ||||||||
| Non-GAAP Financial Measures | ||||||||||||||||
| The information below reconciles the return on average common shareholders' equity to its most comparable U.S. GAAP measure: | ||||||||||||||||
| Return on average common shareholders' equity | ||||||||||||||||
| Return on average shareholders' equity | 7.66 | % | 9.66 | % | 8.41 | % | 8.69 | % | ||||||||
| Effect of excluding average preferred shareholders' equity | 1.34 | % | 2.62 | % | 1.60 | % | 2.32 | % | ||||||||
| Return on average common shareholders' equity | 9.00 | % | 12.28 | % | 10.01 | % | 11.01 | % | ||||||||
| Efficiency ratio GAAP to non-GAAP reconciliation: | ||||||||||||||||
| Non-interest expense | $ | 4,230 | $ | 3,890 | $ | 8,848 | $ | 8,471 | ||||||||
| Less: net (loss)/gain on sales and write-downs of OREO | 87 | (62 | ) | (468 | ) | (747 | ) | |||||||||
| Adjusted non-interest expense (non-GAAP) | $ | 4,317 | $ | 3,828 | $ | 8,380 | $ | 7,724 | ||||||||
| Net interest income | $ | 6,225 | $ | 5,830 | $ | 12,390 | $ | 11,294 | ||||||||
| Non-interest income | 1,713 | 1,559 | 3,587 | 3,369 | ||||||||||||
| Operating revenue | $ | 7,938 | $ | 7,389 | $ | 15,977 | $ | 14,663 | ||||||||
| Efficiency ratio | 54.38 | % | 51.81 | % | 52.45 | % | 52.68 | % | ||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| June 30, 2015 | June 30, 2014 | ||||||||||||||||||||||||||||
| Average Balance (1) | Income/ Expense | Yields/ Rates | Average Balance (1) | Income/ Expense | Yields/ Rates | ||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Investment securities | $ | 81,307 | $ | 341 | 1.68 | % | $ | 74,481 | $ | 338 | 1.82 | % | |||||||||||||||||
| Loans (2) | 648,752 | 7,666 | 4.73 | % | 576,293 | 7,397 | 5.13 | % | |||||||||||||||||||||
| Interest bearing deposits due from other banks | 14,952 | 12 | 0.32 | % | 61,500 | 41 | 0.27 | % | |||||||||||||||||||||
| Total interest-earning assets | $ | 745,011 | $ | 8,019 | 4.31 | % | $ | 712,274 | $ | 7,776 | 4.37 | % | |||||||||||||||||
| Allowance for loan losses | (10,327 | ) | (10,546 | ) | |||||||||||||||||||||||||
| Other assets | 44,013 | 47,179 | |||||||||||||||||||||||||||
| Total assets | $ | 778,697 | $ | 748,907 | |||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Savings, NOW, money market, interest checking | 149,893 | 175 | 0.47 | % | 131,908 | 157 | 0.48 | % | |||||||||||||||||||||
| Time deposits | 391,588 | 1,313 | 1.34 | % | 419,575 | 1,402 | 1.34 | % | |||||||||||||||||||||
| Total interest-bearing deposits | $ | 541,481 | $ | 1,488 | 1.10 | % | $ | 551,483 | $ | 1,559 | 1.13 | % | |||||||||||||||||
| Other borrowings | 6,426 | 64 | 3.98 | % | 12,644 | 205 | 6.49 | % | |||||||||||||||||||||
| FHLB advances | 33,000 | 124 | 1.50 | % | 17,000 | 62 | 1.46 | % | |||||||||||||||||||||
| Junior subordinated debentures | 12,372 | 120 | 3.88 | % | 12,372 | 120 | 3.88 | % | |||||||||||||||||||||
| Total interest-bearing liabilities | $ | 593,279 | $ | 1,796 | 1.21 | % | $ | 593,499 | $ | 1,946 | 1.31 | % | |||||||||||||||||
| Non-interest bearing deposits | 62,401 | 58,796 | |||||||||||||||||||||||||||
| Other liabilities | 7,327 | 6,884 | |||||||||||||||||||||||||||
| Total liabilities | $ | 663,007 | $ | 659,179 | |||||||||||||||||||||||||
| SBLF preferred stock (3) | 15,000 | 15,000 | |||||||||||||||||||||||||||
| Shareholders' equity | 100,690 | 74,728 | |||||||||||||||||||||||||||
| Total liabilities and equity | $ | 778,697 | $ | 748,907 | |||||||||||||||||||||||||
| Net interest income | 6,223 | 5,830 | |||||||||||||||||||||||||||
| Interest rate spread (4) | 3.09 | % | 3.06 | % | |||||||||||||||||||||||||
| Net interest margin (5) | 3.34 | % | 3.27 | % | |||||||||||||||||||||||||
| Ratio of interest-earning assets to interest -bearing liabilities | 1.26 | 1.20 | |||||||||||||||||||||||||||
| Six Months Ended | |||||||||||||||||||||||||||||
| June 30, 2015 | June 30, 2014 | ||||||||||||||||||||||||||||
| Average Balance (1) | Income/ Expense | Yields/ Rates | Average Balance (1) | Income/ Expense | Yields/ Rates | ||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Investment securities | $ | 80,996 | $ | 677 | 1.67 | % | $ | 73,457 | $ | 692 | 1.88 | % | |||||||||||||||||
| Loans (2) | 646,931 | 15,294 | 4.73 | % | 578,725 | 14,479 | 5.00 | % | |||||||||||||||||||||
| Interest bearing deposits due from other banks | 20,243 | 30 | 0.30 | % | 55,481 | 67 | 0.24 | % | |||||||||||||||||||||
| Total interest-earning assets | $ | 748,170 | $ | 16,001 | 4.28 | % | $ | 707,663 | $ | 15,238 | 4.31 | % | |||||||||||||||||
| Allowance for loan losses | (10,448 | ) | (10,559 | ) | |||||||||||||||||||||||||
| Other assets | 43,428 | 48,516 | |||||||||||||||||||||||||||
| Total assets | $ | 781,150 | $ | 745,620 | |||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Savings, NOW, money market, interest checking | 149,637 | 349 | 0.47 | % | 126,904 | 302 | 0.48 | % | |||||||||||||||||||||
| Time deposits | 394,516 | 2,617 | 1.33 | % | 423,363 | 2,815 | 1.33 | % | |||||||||||||||||||||
| Total interest-bearing deposits | $ | 544,153 | $ | 2,966 | 1.09 | % | $ | 550,267 | $ | 3,117 | 1.13 | % | |||||||||||||||||
| Other borrowings | 9,645 | 159 | 3.30 | % | 13,265 | 431 | 6.50 | % | |||||||||||||||||||||
| FHLB advances | 32,779 | 246 | 1.50 | % | 19,099 | 156 | 1.63 | % | |||||||||||||||||||||
| Junior subordinated debentures | 12,372 | 240 | 3.88 | % | 12,372 | 240 | 3.88 | % | |||||||||||||||||||||
| Total interest-bearing liabilities | $ | 598,949 | $ | 3,611 | 1.21 | % | $ | 595,003 | $ | 3,944 | 1.33 | % | |||||||||||||||||
| Non-interest bearing deposits | 61,708 | 54,994 | |||||||||||||||||||||||||||
| Other liabilities | 7,678 | 6,837 | |||||||||||||||||||||||||||
| Total liabilities | $ | 668,335 | $ | 656,834 | |||||||||||||||||||||||||
| SBLF preferred stock (3) | 15,000 | 15,000 | |||||||||||||||||||||||||||
| Shareholders' equity | 97,815 | 73,786 | |||||||||||||||||||||||||||
| Total liabilities and equity | $ | 781,150 | $ | 745,620 | |||||||||||||||||||||||||
| Net interest income | 12,390 | 11,294 | |||||||||||||||||||||||||||
| Interest rate spread (4) | 3.07 | % | 2.98 | % | |||||||||||||||||||||||||
| Net interest margin (5) | 3.31 | % | 3.19 | % | |||||||||||||||||||||||||
| Ratio of interest-earning assets to interest -bearing liabilities | 1.25 | 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) The SBLF preferred stock refers to our Series C noncumulative perpetual preferred stock issued to the U.S. Treasury through the U.S. Treasury’s Small Business Lending Fund program. | |||||||||||||||||||||||||||||
| (4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest bearing liabilities. | |||||||||||||||||||||||||||||
| (5) Net interest margin represents net interest income divided by average total interest-earning assets. | |||||||||||||||||||||||||||||