Highlights
- Net income of $3.3 million for the fourth quarter of 2019; $16.5 million for the year 2019
- Diluted earnings per share of $0.47 for the fourth quarter of 2019; $2.36 for the year 2019
- Client deposits (demand deposits, NOW, savings, money market accounts, and certificates of deposit) increased $17.4 million, or 2.1%, since September 30, 2019, and increased $81.2 million, or 10.8%, since December 31, 2018
- Loans sold with servicing retained increased $90.5 million, or 13.7%, since December 31, 2018, resulting in $10.0 million of non-interest income
- Substandard loans decreased $11.0 million, or 10.4%, since September 30, 2019
MANITOWOC, Wisc., Jan. 23, 2020 (GLOBE NEWSWIRE) -- 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 fourth quarter and year ended December 31, 2019. Net income was $3.3 million, or $0.47 diluted earnings per share, for the fourth quarter of 2019, compared to net income of $5.7 million, or $0.82 diluted earnings per share, for the third quarter of 2019 and $2.8 million, or $0.40 diluted earnings per share, for the fourth quarter of 2018.
Tim Schneider, President of County Bancorp, Inc., noted, “In 2019, we focused on improving credit quality, reducing wholesale funding, and growing our client deposits. I am pleased to say that our strategic initiatives drove improvements across all three focus areas, resulting in record full-year net profit for County Bancorp. Our business is progressing at a solid pace, but we understand there is more work to be done. Our dairy portfolio continued to strengthen as milk prices improved throughout 2019, and the futures market is the strongest we have seen in years. As trade deals with Mexico, Canada and China near the finish line, we feel more optimistic about the future of agricultural export stability. We made great progress in 2019, which is a testament to the diligent and tireless work of our team, and we look to continue our momentum as we head into 2020.”
Loans and Total Assets
Total assets at December 31, 2019 were $1.4 billion, a decrease of $36.5 million, or 2.6%, and a decrease of $142.5 million, or 9.4%, from total assets as of September 30, 2019 and December 31, 2018, respectively. Total loans were $1.0 billion at December 31, 2019, which represents a $45.0 million, or 4.2%, decrease from total loans at September 30, 2019, and a decrease of $171.5 million, or 14.2%, from total loans at December 31, 2018.
The decrease in total loans and assets were the result of our continued focus on loan participation sales and the resulting reduction in wholesale funding (brokered deposits, national certificates of deposit, and Federal Home Loan Bank (FHLB) advances) on our balance sheet. Loan participations that the Company continued to service were $751.7 million at December 31, 2019, which was an increase of $14.9 million, or 2.0%, and $90.5 million, or 13.7%, over participated loans that the Company serviced at September 30, 2019 and December 31, 2018, respectively. By increasing the amount of loans participated, the Company has been reducing credit risk from its balance sheet and increasing non-interest revenue streams.
Deposits
Total deposits at December 31, 2019 were $1.1 billion, a decrease of $41.3 million, or 3.6%, and a decrease of $121.9 million, or 10.0%, from total deposits as of September 30, 2019 and December 31, 2018, respectively. Despite the decline in total deposits, client deposits (demand deposits, NOW accounts, savings accounts, money market accounts, and certificates of deposit) increased $17.4 million, or 2.1%, since September 30, 2019, and increased $81.2 million, or 10.8%, since December 31, 2018.
During 2019, the Company focused on reducing its reliance on wholesale funding. Due to the increases in loan participations and client deposit growth discussed above, the Company was able to decrease its dependence on brokered deposits and national certificates of deposit to $265.8 million at December 31, 2019. This represents a decrease of $58.7 million, or 18.1%, from September 30, 2019, and a decrease of $203.1 million, or 43.3%, from December 31, 2018.
Also during 2019, the Company paid off a portion of its FHLB advances. At December 31, 2019, advances from the FHLB totaled $44.4 million, which was a decrease of $45.0 million, or 50.3%, since December 31, 2018.
Net Interest Income and Margin
Net interest income was $9.5 million for the three months ended December 31, 2019, which was a $0.7 million, or 7.0%, decrease from the three months ended September 30, 2019, and a $1.2 million, or 11.6%, decrease from the three months ended December 31, 2018. For the year ended December 31, 2019, net interest income decreased $1.2 million, or 2.8%, to $40.8 million from the same period in 2018. The decrease in net interest income in the fourth quarter 2019 was the result of a lower average loan balance due to loan payoffs and the increase in loan participations sold. This was partially offset by a $58.7 million decrease in brokered deposits and national certificates of deposit and the resulting decrease in interest expense. The current quarter was also adversely impacted by a $10.2 million increase in nonaccrual loans, as well as a 25 basis point decrease in the Prime rate.
Net interest margin was 2.89% for the three months ended December 31, 2019, which was a decrease from 2.95% for the three months ended September 30, 2019. The decrease in net interest margin was primarily due to the noted increase in nonaccrual loans. Net interest margin was also impacted during the fourth quarter of 2019 by a 25 basis point decrease in the Prime rate, immediately impacting the yield of the loan portfolio. This was partially offset by a decrease in rates offered on savings, NOW and money market accounts.
The table below presents the effects of changing rates and volumes on our net interest income for the periods indicated.
| Three Months Ended December 31, 2019 v. Three Months Ended September 30, 2019 | Three Months Ended December 31, 2019 v. Three Months Ended December 31, 2018 | |||||||||||||||||||||||
| 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 | $ | 1 | $ | (11 | ) | $ | (10 | ) | $ | (228 | ) | $ | (17 | ) | $ | (245 | ) | |||||||
| Loans | (847 | ) | (493 | ) | (1,340 | ) | (1,889 | ) | 44 | (1,845 | ) | |||||||||||||
| Federal funds sold and interest-bearing deposits with banks | (30 | ) | (140 | ) | (170 | ) | 126 | 92 | 218 | |||||||||||||||
| Total interest income | (876 | ) | (644 | ) | (1,520 | ) | (1,991 | ) | 119 | (1,872 | ) | |||||||||||||
| Interest Expense: | ||||||||||||||||||||||||
| Savings, NOW, money market and interest checking | $ | (15 | ) | $ | (385 | ) | $ | (400 | ) | $ | 158 | $ | (325 | ) | $ | (167 | ) | |||||||
| Time deposits | (515 | ) | 123 | (392 | ) | (1,354 | ) | 1,029 | (325 | ) | ||||||||||||||
| Other borrowings | - | - | - | - | - | - | ||||||||||||||||||
| FHLB advances | (22 | ) | 1 | (21 | ) | (226 | ) | 24 | (202 | ) | ||||||||||||||
| Junior subordinated debentures | 1 | 6 | 7 | 2 | 25 | 27 | ||||||||||||||||||
| Total interest expense | $ | (551 | ) | $ | (255 | ) | $ | (806 | ) | $ | (1,420 | ) | $ | 753 | $ | (667 | ) | |||||||
| Net interest income | $ | (325 | ) | $ | (389 | ) | $ | (714 | ) | $ | (571 | ) | $ | (634 | ) | $ | (1,205 | ) | ||||||
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 | ||||||||||||||||||||||||||||||||||||
| December 31, 2019 | September 30, 2019 | December 31, 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 | $ | 159,202 | $ | 1,106 | 2.78 | % | $ | 159,091 | $ | 1,117 | 2.81 | % | $ | 191,955 | $ | 1,351 | 2.82 | % | ||||||||||||||||||
| Loans (2) | 1,061,432 | 13,691 | 5.16 | % | 1,126,243 | 15,030 | 5.34 | % | 1,207,883 | 15,536 | 5.14 | % | ||||||||||||||||||||||||
| Interest bearing deposits due from other banks | 98,848 | 441 | 1.79 | % | 104,253 | 612 | 2.35 | % | 67,153 | 223 | 1.33 | % | ||||||||||||||||||||||||
| Total interest-earning assets | $ | 1,319,482 | $ | 15,238 | 4.62 | % | $ | 1,389,587 | $ | 16,759 | 4.82 | % | $ | 1,466,991 | $ | 17,110 | 4.67 | % | ||||||||||||||||||
| Allowance for loan losses | (14,868 | ) | (16,209 | ) | (16,034 | ) | ||||||||||||||||||||||||||||||
| Other assets | 77,934 | 78,664 | 61,316 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 1,382,548 | $ | 1,452,042 | $ | 1,512,273 | ||||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||||||||||
| Savings, NOW, money market, interest checking | $ | 322,629 | $ | 876 | 1.09 | % | $ | 326,592 | $ | 1,276 | 1.56 | % | $ | 287,420 | $ | 1,043 | 1.45 | % | ||||||||||||||||||
| Time deposits | 658,864 | 3,905 | 2.37 | % | 745,032 | 4,298 | 2.31 | % | 820,515 | 4,230 | 2.06 | % | ||||||||||||||||||||||||
| Total interest-bearing deposits | $ | 981,493 | $ | 4,781 | 1.95 | % | $ | 1,071,624 | $ | 5,574 | 2.08 | % | $ | 1,107,935 | $ | 5,273 | 1.90 | % | ||||||||||||||||||
| Other borrowings | 799 | 9 | 4.60 | % | 804 | 9 | 4.60 | % | 837 | 10 | 4.62 | % | ||||||||||||||||||||||||
| FHLB advances | 44,400 | 216 | 1.94 | % | 48,857 | 237 | 1.94 | % | 90,509 | 417 | 1.84 | % | ||||||||||||||||||||||||
| Junior subordinated debentures | 44,839 | 694 | 6.19 | % | 44,800 | 687 | 6.14 | % | 44,681 | 667 | 5.97 | % | ||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 1,071,531 | $ | 5,700 | 2.13 | % | $ | 1,166,085 | $ | 6,507 | 2.23 | % | $ | 1,243,962 | $ | 6,367 | 2.05 | % | ||||||||||||||||||
| Non-interest bearing deposits | 123,541 | 105,578 | 108,140 | |||||||||||||||||||||||||||||||||
| Other liabilities | 16,749 | 14,801 | 10,913 | |||||||||||||||||||||||||||||||||
| Total liabilities | $ | 1,211,821 | $ | 1,286,464 | $ | 1,363,015 | ||||||||||||||||||||||||||||||
| Shareholders' equity | 170,727 | 165,578 | 149,258 | |||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 1,382,548 | $ | 1,452,042 | $ | 1,512,273 | ||||||||||||||||||||||||||||||
| Net interest income | $ | 9,538 | $ | 10,252 | $ | 10,743 | ||||||||||||||||||||||||||||||
| Interest rate spread (3) | 2.49 | % | 2.59 | % | 2.62 | % | ||||||||||||||||||||||||||||||
| Net interest margin (4) | 2.89 | % | 2.95 | % | 2.91 | % | ||||||||||||||||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 1.23 | 1.19 | 1.18 | |||||||||||||||||||||||||||||||||
- Average balances are calculated on amortized cost.
- Includes loan fee income, nonaccruing loan balances, and interest received on such loans.
- Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
- Net interest margin represents net interest income divided by average total interest-earning assets.
For the year ended December 31, 2019, net interest margin improved slightly to 2.93% from 2.91% for the year ended December 31, 2018, despite a six basis point decrease in interest rate spread. The increase in net interest margin in 2019 is due to a 3.2% decrease in the average balance of interest-earning assets.
| For the Year Ended | ||||||||||||||||||||||||
| December 31, 2019 | December 31, 2018 | |||||||||||||||||||||||
| Average Balance (1) | Income/ Expense | Yields/ Rates | Average Balance (1) | Income/ Expense | Yields/ Rates | |||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Investment securities | $ | 172,500 | $ | 4,843 | 2.81 | % | $ | 169,302 | $ | 4,425 | 2.61 | % | ||||||||||||
| Loans (2) | 1,142,551 | 59,706 | 5.23 | % | 1,193,254 | 58,706 | 4.92 | % | ||||||||||||||||
| Interest bearing deposits due from other banks | 78,517 | 1,783 | 2.27 | % | 77,545 | 1,086 | 1.40 | % | ||||||||||||||||
| Total interest-earning assets | $ | 1,393,568 | $ | 66,332 | 4.76 | % | $ | 1,440,101 | $ | 64,217 | 4.46 | % | ||||||||||||
| Allowance for loan losses | (16,460 | ) | (15,037 | ) | ||||||||||||||||||||
| Other assets | 77,444 | 59,291 | ||||||||||||||||||||||
| Total assets | $ | 1,454,552 | $ | 1,484,355 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Savings, NOW, money market, interest checking | $ | 316,278 | 4,582 | 1.45 | % | $ | 282,746 | 3,398 | 1.20 | % | ||||||||||||||
| Time deposits | 741,483 | 16,875 | 2.28 | % | 801,892 | 15,251 | 1.90 | % | ||||||||||||||||
| Total interest-bearing deposits | $ | 1,057,761 | $ | 21,457 | 2.03 | % | $ | 1,084,638 | $ | 18,649 | 1.72 | % | ||||||||||||
| Other borrowings | 913 | 43 | 4.71 | % | 1,027 | 50 | 4.81 | % | ||||||||||||||||
| FHLB advances | 66,022 | 1,307 | 1.98 | % | 105,218 | 1,759 | 1.67 | % | ||||||||||||||||
| Junior subordinated debentures | 44,781 | 2,743 | 6.13 | % | 32,721 | 1,804 | 5.51 | % | ||||||||||||||||
| Total interest-bearing liabilities | $ | 1,169,477 | $ | 25,550 | 2.18 | % | $ | 1,223,604 | $ | 22,262 | 1.82 | % | ||||||||||||
| Non-interest bearing deposits | 108,356 | 100,819 | ||||||||||||||||||||||
| Other liabilities | 13,796 | 9,883 | ||||||||||||||||||||||
| Total liabilities | $ | 1,291,629 | $ | 1,334,306 | ||||||||||||||||||||
| Shareholders' equity | 162,923 | 150,049 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 1,454,552 | $ | 1,484,355 | ||||||||||||||||||||
| Net interest income | $ | 40,782 | $ | 41,955 | ||||||||||||||||||||
| Interest rate spread (3) | 2.58 | % | 2.64 | % | ||||||||||||||||||||
| Net interest margin (4) | 2.93 | % | 2.91 | % | ||||||||||||||||||||
| Ratio of interest-earning assets to interest- bearing liabilities | 1.19 | 1.18 | ||||||||||||||||||||||
- Average balances are calculated on amortized cost.
- Includes loan fee income, nonaccruing loan balances, and interest received on such loans.
- Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
- Net interest margin represents net interest income divided by average total interest-earning assets.
Non-Interest Income and Expense
| For the Three Months Ended | ||||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Non-Interest Income | ||||||||||||||||||||
| Service charges | $ | 549 | $ | 348 | $ | 407 | $ | 353 | $ | 470 | ||||||||||
| Gain (loss) on sale of loans, net | 34 | 87 | 26 | (1 | ) | 54 | ||||||||||||||
| Loan servicing fees | 1,778 | 1,677 | 1,563 | 1,519 | 1,553 | |||||||||||||||
| Loan servicing right origination | 1,146 | 1,741 | 346 | 228 | 7 | |||||||||||||||
| Income on OREO | 54 | 10 | 40 | 26 | 83 | |||||||||||||||
| Gain on sale of securities | - | - | 341 | - | - | |||||||||||||||
| Other | 161 | 171 | 164 | 625 | 153 | |||||||||||||||
| Total non-interest income | $ | 3,722 | $ | 4,034 | $ | 2,887 | $ | 2,750 | $ | 2,320 | ||||||||||
Non-interest income for the three months ended December 31, 2019 decreased by $0.3 million, or 7.7%, to $3.7 million compared to the three months ended September 30, 2019, which was primarily the result of a decrease of $0.6 million of loan servicing right origination due to the $41.2 million in loans that were sold or participated during the third quarter compared to only $14.9 million in loans that were sold or participated during the fourth quarter.
Non-interest income for the three months ended December 31, 2019 increased $1.4 million, or 60.4%, compared to $2.3 million for the three months ended December 31, 2018. The year-over-year increase was primarily due to the increase in loan participations sold and related loan servicing right origination income compared to the fourth quarter of 2018.
| For the Three Months Ended | ||||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Loan servicing rights, beginning of period | $ | 11,362 | $ | 9,621 | $ | 9,275 | $ | 9,047 | $ | 9,040 | ||||||||||
| Changes in loan servicing rights: | ||||||||||||||||||||
| Additions related to new loans | 1,811 | 2,276 | 843 | 621 | 596 | |||||||||||||||
| Impairment due to prepayment | (296 | ) | (198 | ) | (190 | ) | (73 | ) | (37 | ) | ||||||||||
| Amortization of existing asset | (632 | ) | (584 | ) | (554 | ) | (550 | ) | (552 | ) | ||||||||||
| Reduction of valuation allowance | 263 | 247 | 247 | 230 | - | |||||||||||||||
| Total loan servicing right origination income | 1,146 | 1,741 | 346 | 228 | 7 | |||||||||||||||
| Loan servicing rights, end of period | $ | 12,508 | $ | 11,362 | $ | 9,621 | $ | 9,275 | $ | 9,047 | ||||||||||
| Loans serviced, end of period | 751,738 | 736,823 | 695,629 | 675,268 | 661,257 | |||||||||||||||
| Loan servicing rights as a % of loans serviced | 1.66 | % | 1.54 | % | 1.38 | % | 1.37 | % | 1.37 | % | ||||||||||
| Total loan servicing fees | $ | 1,778 | $ | 1,677 | $ | 1,563 | $ | 1,519 | $ | 1,553 | ||||||||||
| Average loans serviced | 744,281 | 716,226 | 685,449 | 668,263 | 653,068 | |||||||||||||||
| Annualized loan servicing fees as a % of average loans serviced | 0.96 | % | 0.94 | % | 0.91 | % | 0.91 | % | 0.95 | % | ||||||||||
Loan servicing right origination and loan serving fee income was positively impacted during the second half of the year in 2019 due to the higher volumes of loan participation sales as well as higher loan servicing fee spreads.
| For the Three Months Ended | ||||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | ||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||
| Non-Interest Expense | ||||||||||||||||||||
| Employee compensation and benefits | $ | 5,696 | $ | 4,735 | $ | 4,199 | $ | 4,482 | $ | 4,059 | ||||||||||
| Occupancy | 417 | 313 | 283 | 389 | 245 | |||||||||||||||
| Information processing | 645 | 683 | 591 | 563 | 641 | |||||||||||||||
| Professional fees | 371 | 483 | 417 | 399 | 497 | |||||||||||||||
| Business development | 335 | 351 | 347 | 325 | 259 | |||||||||||||||
| OREO expenses | 59 | 57 | 121 | 51 | 106 | |||||||||||||||
| Write-down of OREO | 376 | - | 250 | - | 688 | |||||||||||||||
| Net loss (gain) on sale of OREO | (231 | ) | 160 | 9 | (136 | ) | (54 | ) | ||||||||||||
| Depreciation and amortization | 319 | 319 | 328 | 337 | 408 | |||||||||||||||
| Other | 2,278 | 567 | 901 | 895 | 689 | |||||||||||||||
| Total non-interest expense | $ | 10,265 | $ | 7,668 | $ | 7,446 | $ | 7,305 | $ | 7,538 | ||||||||||
Non-interest expense for the three months ended December 31, 2019 increased by $2.6 million, or 33.9%, to $10.3 million compared to the three months ended September 30, 2019. Employee compensation and benefits increased $1.0 million, or 20.3%, in the linked quarter due to the additional accrual of $0.9 million for incentive compensation related to current year financial results. The year-over-year increase was also the result of a 5.3% increase in head count and a 21.7% increase in insurance benefits in 2019. Other non-interest expense increased from impairment recognized from an investment in a historical tax credit project of $1.1 million. The impairment was offset by a $1.4 million benefit to income tax expense when the credit was earned. The three months ended December 31, 2019 was also adversely affected by decline in market values of three OREO properties which resulted in write-downs totaling $0.4 million.
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Loans by risk category: | ||||||||||||||||||||
| Sound/Acceptable/Satisfactory/ Low Satisfactory | $ | 724,444 | $ | 771,568 | $ | 836,988 | $ | 896,328 | $ | 908,172 | ||||||||||
| Watch | 207,173 | 193,942 | 167,824 | 174,642 | 171,670 | |||||||||||||||
| Special Mention | 9,239 | 9,346 | 25,255 | 4,501 | 6,566 | |||||||||||||||
| Substandard Performing | 30,478 | 44,183 | 56,336 | 46,075 | 65,501 | |||||||||||||||
| Substandard Impaired | 64,439 | 61,728 | 61,429 | 61,417 | 55,386 | |||||||||||||||
| Total loans | $ | 1,035,773 | $ | 1,080,767 | $ | 1,147,832 | $ | 1,182,963 | $ | 1,207,295 | ||||||||||
| Adverse classified asset ratio (1) | 39.85 | % | 45.67 | % | 53.21 | % | 48.59 | % | 57.12 | % | ||||||||||
(1) This is a non-GAAP financial measure. A reconciliation to GAAP is included at the end of this earnings release
Substandard loans were $94.9 million at December 31, 2019, compared to $105.9 million at September 30, 2019 and $120.9 million at December 31, 2018. Adverse classified asset ratio (a non-GAAP measure) decreased to 39.85% at December 31, 2019 from 45.67% and 57.12% at September 30, 2019 and December 31, 2018, respectively. The decrease in substandard loans and the adverse classified ratio were in part the result of improving milk prices. The average 12-month future price of class III milk on the Chicago Mercantile Exchange rose to $17.40 at December 31, 2019 compared to $17.12 at September 30, 2019 and $15.88 at December 31, 2018.
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Non-Performing Assets: | ||||||||||||||||||||
| Nonaccrual loans | $ | 30,968 | $ | 20,776 | $ | 20,096 | $ | 25,880 | $ | 22,983 | ||||||||||
| Other real estate owned | 5,521 | 7,252 | 8,693 | 5,019 | 6,568 | |||||||||||||||
| Total non-performing assets | $ | 36,489 | $ | 28,028 | $ | 28,789 | $ | 30,899 | $ | 29,551 | ||||||||||
| Performing TDRs not on nonaccrual | $ | 21,784 | $ | 28,520 | $ | 28,892 | $ | 21,111 | $ | 18,258 | ||||||||||
| Non-performing assets as a % of total loans | 3.52 | % | 2.59 | % | 2.51 | % | 2.61 | % | 2.45 | % | ||||||||||
| Non-performing assets as a % of total assets | 2.65 | % | 1.98 | % | 1.94 | % | 2.07 | % | 1.94 | % | ||||||||||
| Allowance for loan losses as a % of total loans | 1.47 | % | 1.39 | % | 1.42 | % | 1.48 | % | 1.37 | % | ||||||||||
| Net charge-offs (recoveries) quarter- to-date | $ | (253 | ) | $ | 39 | $ | 2,111 | $ | (236 | ) | $ | 1,210 | ||||||||
At December 31, 2019, non-performing assets were $36.5 million, an increase of $8.5 million, compared to September 30, 2019. Non-performing assets as a percent of total assets increased to 2.65% at December 31, 2019, from 1.98% at September 30, 2019. The increases were primarily due to an increase in non-accrual loans of $10.2 million in the fourth quarter related to one agriculture customer for $6.0 million and one commercial customer for $3.9 million, which was partially offset by two OREO properties that were sold during the fourth quarter of 2019, resulting in a decrease of $1.7 million in OREO.
A credit to provision for loan losses of $0.1 million was recorded for the three months ended December 31, 2019 compared to a credit of $1.2 million for the three months ended September 30, 2019. The credit provision in the fourth quarter of 2019 was primarily a result of the reduction of the size of the loan portfolio, improved economic factors, and upgrades to credit ratings, which was partially offset by a $1.9 million impairment to a substandard commercial credit. In addition, during the fourth quarter of 2019, the Company recovered a $0.4 million loan that was previously charged-off.
The allowance for loan losses was $15.3 million at December 31, 2019 compared to $16.5 million at December 31, 2018. The $1.2 million decrease in the allowance during 2019 was the result of a reduction in general reserves due to the decreases in total loans, improvement of economic factors, and the credit upgrades discussed previously. Despite the decrease in allowance year-over-year, the allowance as a percent of total loans increased from 1.37% at December 31, 2018 to 1.47% at December 31, 2019.
Conference Call
The Company will host an earnings call tomorrow, January 24, 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 January 25, 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) | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||
| Period-End Balance Sheet: | ||||||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 129,011 | $ | 120,845 | $ | 116,251 | $ | 62,426 | $ | 61,087 | ||||||||||
| Securities available for sale, at fair value | 160,361 | 154,962 | 158,561 | 192,210 | 195,945 | |||||||||||||||
| Loans held for sale | 2,151 | 4,192 | 7,448 | 2,750 | 2,949 | |||||||||||||||
| Agricultural loans | 659,725 | 673,742 | 713,602 | 722,107 | 724,508 | |||||||||||||||
| Commercial loans | 331,723 | 360,132 | 383,542 | 403,490 | 415,672 | |||||||||||||||
| Multi-family real estate loans | 41,070 | 43,487 | 46,683 | 52,974 | 62,321 | |||||||||||||||
| Residential real estate loans | 2,888 | 3,183 | 3,753 | 4,172 | 4,522 | |||||||||||||||
| Installment and consumer other | 367 | 223 | 252 | 220 | 272 | |||||||||||||||
| Total loans | 1,035,773 | 1,080,767 | 1,147,832 | 1,182,963 | 1,207,295 | |||||||||||||||
| Allowance for loan losses | (15,267 | ) | (15,065 | ) | (16,258 | ) | (17,493 | ) | (16,505 | ) | ||||||||||
| Net loans | 1,020,506 | 1,065,702 | 1,131,574 | 1,165,470 | 1,190,790 | |||||||||||||||
| Other assets | 66,485 | 69,263 | 70,812 | 68,532 | 70,256 | |||||||||||||||
| Total Assets | $ | 1,378,514 | $ | 1,414,964 | $ | 1,484,646 | $ | 1,491,388 | $ | 1,521,027 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Demand deposits | $ | 138,489 | $ | 117,224 | $ | 111,022 | $ | 101,434 | $ | 121,436 | ||||||||||
| NOW accounts and interest checking | 63,781 | 56,637 | 54,253 | 49,902 | 51,779 | |||||||||||||||
| Savings | 15,708 | 6,981 | 6,621 | 6,210 | 5,770 | |||||||||||||||
| Money market accounts | 242,539 | 248,608 | 239,337 | 225,975 | 218,929 | |||||||||||||||
| Time deposits | 375,100 | 388,759 | 387,899 | 376,034 | 356,484 | |||||||||||||||
| Brokered deposits | 166,340 | 206,474 | 256,475 | 269,917 | 308,504 | |||||||||||||||
| National time deposits | 99,485 | 118,070 | 149,570 | 146,805 | 160,445 | |||||||||||||||
| Total deposits | 1,101,442 | 1,142,753 | 1,205,177 | 1,176,277 | 1,223,347 | |||||||||||||||
| FHLB advances | 44,400 | 44,400 | 59,400 | 100,400 | 89,400 | |||||||||||||||
| Subordinated debentures | 44,858 | 44,820 | 44,781 | 44,742 | 44,703 | |||||||||||||||
| Other liabilities | 16,051 | 14,239 | 12,564 | 11,952 | 11,293 | |||||||||||||||
| Total Liabilities | 1,206,751 | 1,246,212 | 1,321,922 | 1,333,371 | 1,368,743 | |||||||||||||||
| Shareholders' equity | 171,763 | 168,752 | 162,724 | 158,017 | 152,284 | |||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,378,514 | $ | 1,414,964 | $ | 1,484,646 | $ | 1,491,388 | $ | 1,521,027 | ||||||||||
| Stock Price Information: | ||||||||||||||||||||
| High - Quarter-to-date | $ | 27.98 | $ | 20.99 | $ | 18.92 | $ | 19.69 | $ | 26.00 | ||||||||||
| Low - Quarter-to-date | $ | 18.76 | $ | 16.80 | $ | 16.24 | $ | 16.74 | $ | 17.37 | ||||||||||
| Market price - Quarter-end | $ | 25.63 | $ | 19.62 | $ | 17.09 | $ | 17.60 | $ | 17.37 | ||||||||||
| Book value per share | $ | 24.32 | $ | 23.89 | $ | 23.03 | $ | 22.36 | $ | 21.50 | ||||||||||
| Tangible book value per share (1) | $ | 23.54 | $ | 23.10 | $ | 22.23 | $ | 21.54 | $ | 20.68 | ||||||||||
| Common shares outstanding | 6,734,132 | 6,727,908 | 6,717,908 | 6,709,254 | 6,709,480 | |||||||||||||||
(1) This is a non-GAAP financial measure. A reconciliation to GAAP is included below.
| For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||||||||||
| Selected Income Statement Data: | ||||||||||||||||||||||||||||
| Interest and Dividend Income | ||||||||||||||||||||||||||||
| Loans, including fees | 13,691 | $ | 15,030 | $ | 15,484 | $ | 15,501 | $ | 15,536 | $ | 59,706 | $ | 58,706 | |||||||||||||||
| Taxable securities | 1,106 | 1,117 | 1,177 | 1,186 | 1,168 | 4,586 | 3,727 | |||||||||||||||||||||
| Tax-exempt securities | - | - | 82 | 175 | 183 | 257 | 698 | |||||||||||||||||||||
| Federal funds sold and other | 442 | 612 | 465 | 264 | 223 | 1,783 | 1,086 | |||||||||||||||||||||
| Total interest and dividend income | 15,239 | 16,759 | 17,208 | 17,126 | 17,110 | 66,332 | 64,217 | |||||||||||||||||||||
| Interest Expense | ||||||||||||||||||||||||||||
| Deposits | 4,781 | 5,574 | 5,678 | 5,424 | 5,273 | 21,457 | 18,649 | |||||||||||||||||||||
| FHLB advances and other borrowed funds | 225 | 246 | 415 | 464 | 427 | 1,350 | 1,809 | |||||||||||||||||||||
| Subordinated debentures | 695 | 687 | 683 | 678 | 667 | 2,743 | 1,804 | |||||||||||||||||||||
| Total interest expense | 5,701 | 6,507 | 6,776 | 6,566 | 6,367 | 25,550 | 22,262 | |||||||||||||||||||||
| Net interest income | 9,538 | 10,252 | 10,432 | 10,560 | 10,743 | 40,782 | 41,955 | |||||||||||||||||||||
| Provision for loan losses | (51 | ) | (1,154 | ) | 876 | 752 | 1,572 | 423 | 3,195 | |||||||||||||||||||
| Net interest income after provision for loan losses | 9,589 | 11,406 | 9,556 | 9,808 | 9,171 | 40,359 | 38,760 | |||||||||||||||||||||
| Non-Interest Income | ||||||||||||||||||||||||||||
| Services charges | 549 | 348 | 407 | 353 | 470 | 1,657 | 1,674 | |||||||||||||||||||||
| Gain (loss) on sale of loans, net | 34 | 87 | 26 | (1 | ) | 54 | 146 | 172 | ||||||||||||||||||||
| Loan servicing fees | 1,778 | 1,677 | 1,563 | 1,519 | 1,553 | 6,537 | 6,012 | |||||||||||||||||||||
| Loan servicing right origination | 1,146 | 1,741 | 346 | 228 | 7 | 3,461 | 98 | |||||||||||||||||||||
| Income on OREO | 54 | 10 | 40 | 26 | 83 | 130 | 256 | |||||||||||||||||||||
| Gain on sale of securities | - | - | 341 | - | - | 341 | - | |||||||||||||||||||||
| Other | 161 | 171 | 164 | 625 | 153 | 1,121 | 621 | |||||||||||||||||||||
| Total non-interest income | 3,722 | 4,034 | 2,887 | 2,750 | 2,320 | 13,393 | 8,833 | |||||||||||||||||||||
| Non-Interest Expense | ||||||||||||||||||||||||||||
| Employee compensation and benefits | 5,696 | 4,735 | 4,199 | 4,482 | 4,059 | 19,112 | 16,785 | |||||||||||||||||||||
| Occupancy | 417 | 313 | 283 | 389 | 245 | 1,402 | 1,059 | |||||||||||||||||||||
| Information processing | 645 | 683 | 591 | 563 | 641 | 2,482 | 2,164 | |||||||||||||||||||||
| Professional fees | 371 | 483 | 417 | 399 | 497 | 1,670 | 1,522 | |||||||||||||||||||||
| Business development | 335 | 351 | 347 | 325 | 259 | 1,358 | 1,076 | |||||||||||||||||||||
| OREO expenses | 59 | 57 | 121 | 51 | 106 | 288 | 444 | |||||||||||||||||||||
| Writedown of OREO | 376 | - | 250 | - | 688 | 626 | 873 | |||||||||||||||||||||
| Net loss (gain) on sale of OREO | (231 | ) | 160 | 9 | (136 | ) | (54 | ) | (198 | ) | (189 | ) | ||||||||||||||||
| Depreciation and amortization | 319 | 319 | 328 | 337 | 408 | 1,303 | 1,348 | |||||||||||||||||||||
| Other | 2,278 | 567 | 901 | 895 | 689 | 4,641 | 3,201 | |||||||||||||||||||||
| Total non-interest expense | 10,265 | 7,668 | 7,446 | 7,305 | 7,538 | 32,684 | 28,283 | |||||||||||||||||||||
| Income before income taxes | 3,046 | 7,772 | 4,997 | 5,253 | 3,953 | 21,068 | 19,310 | |||||||||||||||||||||
| Income tax expense | (258 | ) | 2,090 | 1,293 | 1,491 | 1,123 | 4,616 | 5,059 | ||||||||||||||||||||
| NET INCOME | $ | 3,304 | $ | 5,682 | $ | 3,704 | $ | 3,762 | $ | 2,830 | $ | 16,452 | $ | 14,251 | ||||||||||||||
| Basic | $ | 0.47 | $ | 0.82 | $ | 0.53 | $ | 0.54 | $ | 0.41 | $ | 2.37 | $ | 2.06 | ||||||||||||||
| Diluted | $ | 0.47 | $ | 0.82 | $ | 0.53 | $ | 0.54 | $ | 0.40 | $ | 2.36 | $ | 2.04 | ||||||||||||||
| Dividends declared | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.05 | $ | 0.07 | $ | 0.20 | $ | 0.28 | ||||||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||
| (dollars in thousands, except share data) | ||||||||||||||||||||||||||||
| Other Data: | ||||||||||||||||||||||||||||
| Return on average assets(1) | 0.96 | % | 1.57 | % | 1.00 | % | 1.00 | % | 0.75 | % | 1.13 | % | 0.96 | % | ||||||||||||||
| Return on average shareholders' equity(1) | 7.74 | % | 13.73 | % | 9.24 | % | 9.78 | % | 7.58 | % | 10.10 | % | 9.50 | % | ||||||||||||||
| Return on average common shareholders' equity (1)(2) | 7.83 | % | 14.14 | % | 9.41 | % | 9.99 | % | 7.70 | % | 10.31 | % | 9.74 | % | ||||||||||||||
| Efficiency ratio (1)(2) | 76.32 | % | 52.55 | % | 55.38 | % | 55.91 | % | 52.85 | % | 59.92 | % | 54.42 | % | ||||||||||||||
| Tangible common equity to tangible assets (2) | 11.54 | % | 11.03 | % | 10.10 | % | 9.73 | % | 9.16 | % | 11.54 | % | 9.16 | % | ||||||||||||||
| Common Share Data: | ||||||||||||||||||||||||||||
| Net income from continuing operations | $ | 3,304 | $ | 5,682 | $ | 3,704 | $ | 3,762 | $ | 2,830 | $ | 16,452 | $ | 14,251 | ||||||||||||||
| Less: Preferred stock dividends | 117 | 120 | 118 | 117 | 111 | 472 | 413 | |||||||||||||||||||||
| Income available to common shareholders | $ | 3,187 | $ | 5,562 | $ | 3,586 | $ | 3,645 | $ | 2,719 | $ | 15,980 | $ | 13,838 | ||||||||||||||
| Weighted average number of common shares issued | 7,173,290 | 7,168,785 | 7,159,072 | 7,153,174 | 7,143,204 | 7,163,650 | 7,132,985 | |||||||||||||||||||||
| Less: Weighted average treasury shares | 443,920 | 443,920 | 443,920 | 443,729 | 443,694 | 443,873 | 442,206 | |||||||||||||||||||||
| Plus: Weighted average non- vested restricted stock units | 32,125 | 32,125 | 30,483 | 16,260 | 13,041 | 27,804 | 13,272 | |||||||||||||||||||||
| Weighted average number of common shares outstanding | 6,761,495 | 6,756,990 | 6,745,635 | 6,725,705 | 6,712,551 | 6,747,581 | 6,704,051 | |||||||||||||||||||||
| Effect of dilutive options | 44,630 | 19,160 | 20,731 | 21,323 | 45,116 | 21,344 | 68,876 | |||||||||||||||||||||
| Weighted average number of common shares outstanding used to calculate diluted earnings per common share | 6,806,125 | 6,776,150 | 6,766,366 | 6,747,028 | 6,757,667 | 6,768,925 | 6,772,927 | |||||||||||||||||||||
- Annualized
- This is a non-GAAP financial measure. A reconciliation to GAAP is included below.
| For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||
| Non-GAAP Financial Measures: | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | December 31, 2019 | December 31, 2018 | |||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||
| Return on average common shareholders' equity reconciliation: | ||||||||||||||||||||||||||||
| Return on average shareholders' equity | 7.74 | % | 13.73 | % | 9.24 | % | 9.78 | % | 7.58 | % | 10.10 | % | 9.50 | % | ||||||||||||||
| Effect of excluding average preferred shareholders' equity | 0.09 | % | 0.41 | % | 0.17 | % | 0.21 | % | 0.12 | % | 0.21 | % | 0.24 | % | ||||||||||||||
| Return on average common shareholders' equity | 7.83 | % | 14.14 | % | 9.41 | % | 9.99 | % | 7.70 | % | 10.31 | % | 9.74 | % | ||||||||||||||
| Efficiency ratio GAAP to non-GAAP reconciliation: | ||||||||||||||||||||||||||||
| Non-interest expense | $ | 10,265 | $ | 7,668 | $ | 7,446 | $ | 7,305 | $ | 7,538 | $ | 32,684 | $ | 28,283 | ||||||||||||||
| Less: net gain (loss) on sales and write-downs of OREO | (145 | ) | (160 | ) | (259 | ) | 136 | (634 | ) | (428 | ) | (642 | ) | |||||||||||||||
| Adjusted non-interest expense (non-GAAP) | $ | 10,120 | $ | 7,508 | $ | 7,187 | $ | 7,441 | $ | 6,904 | $ | 32,256 | $ | 27,641 | ||||||||||||||
| Net interest income | $ | 9,538 | $ | 10,252 | $ | 10,432 | $ | 10,560 | $ | 10,743 | $ | 40,782 | $ | 41,955 | ||||||||||||||
| Non-interest income | 3,722 | 4,034 | 2,887 | 2,750 | 2,320 | 13,393 | 8,833 | |||||||||||||||||||||
| Less: net gain on sales of securities | - | - | (341 | ) | - | - | (341 | ) | - | |||||||||||||||||||
| Operating revenue | $ | 13,260 | $ | 14,286 | $ | 12,978 | $ | 13,310 | $ | 13,063 | $ | 53,834 | $ | 50,788 | ||||||||||||||
| Efficiency ratio | 76.32 | % | 52.55 | % | 55.38 | % | 55.91 | % | 52.85 | % | 59.92 | % | 54.42 | % | ||||||||||||||
| Non-GAAP Financial Measures: | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||
| Tangible book value per share and tangible common equity to tangible assets reconciliation: | ||||||||||||||||||||
| Common equity | $ | 163,763 | $ | 160,752 | $ | 154,724 | $ | 150,017 | $ | 144,284 | ||||||||||
| Less: Goodwill | 5,038 | 5,038 | 5,038 | 5,038 | 5,038 | |||||||||||||||
| Less: Core deposit intangible, net of amortization | 225 | 286 | 354 | 430 | 513 | |||||||||||||||
| Tangible common equity (non-GAAP) | $ | 158,500 | $ | 155,428 | $ | 149,332 | $ | 144,549 | $ | 138,733 | ||||||||||
| Common shares outstanding | 6,734,132 | 6,727,908 | 6,717,908 | 6,709,254 | 6,709,480 | |||||||||||||||
| Tangible book value per share | $ | 23.54 | $ | 23.10 | $ | 22.23 | $ | 21.54 | $ | 20.68 | ||||||||||
| Total assets | $ | 1,378,514 | $ | 1,414,964 | $ | 1,484,646 | $ | 1,491,388 | $ | 1,521,027 | ||||||||||
| Less: Goodwill | 5,038 | 5,038 | 5,038 | 5,038 | 5,038 | |||||||||||||||
| Less: Core deposit intangible, net of amortization | 225 | 286 | 354 | 603 | 701 | |||||||||||||||
| Tangible assets (non-GAAP) | $ | 1,373,251 | $ | 1,409,640 | $ | 1,479,254 | $ | 1,485,747 | $ | 1,515,288 | ||||||||||
| Tangible common equity to tangible assets | 11.54 | % | 11.03 | % | 10.10 | % | 9.73 | % | 9.16 | % | ||||||||||
| Adverse classified asset ratio: | ||||||||||||||||||||
| Substandard loans | $ | 94,917 | $ | 105,911 | $ | 117,765 | $ | 107,492 | $ | 120,887 | ||||||||||
| Less: Impaired performing restructured loans | (8,925 | ) | (8,672 | ) | (8,276 | ) | (6,382 | ) | (5,078 | ) | ||||||||||
| Net substandard loans | $ | 85,992 | $ | 97,239 | $ | 109,489 | $ | 101,110 | $ | 115,809 | ||||||||||
| Other real estate owned | 5,521 | 7,252 | 8,693 | 5,019 | 6,568 | |||||||||||||||
| Substandard unused commitments | 2,849 | 991 | 1,458 | 976 | 1,625 | |||||||||||||||
| Less: Substandard government guarantees | (7,892 | ) | (7,746 | ) | (7,821 | ) | (5,864 | ) | (7,111 | ) | ||||||||||
| Total adverse classified assets (non-GAAP) | $ | 86,470 | $ | 97,736 | $ | 111,819 | $ | 101,241 | $ | 116,891 | ||||||||||
| Total equity (Bank) | $ | 204,240 | $ | 201,967 | $ | 196,036 | $ | 191,287 | $ | 185,458 | ||||||||||
| Accumulated other comprehensive loss (gain) on available for sale securities | (2,505 | ) | (3,016 | ) | (2,166 | ) | (436 | ) | 2,221 | |||||||||||
| Allowance for loan losses | 15,267 | 15,065 | 16,258 | 17,493 | 16,505 | |||||||||||||||
| Allowance for unused commitments | - | - | - | - | 475 | |||||||||||||||
| Adjusted total equity (non-GAAP) | $ | 217,002 | $ | 214,016 | $ | 210,128 | $ | 208,344 | $ | 204,659 | ||||||||||
| Adverse classified asset ratio | 39.85 | % | 45.67 | % | 53.21 | % | 48.59 | % | 57.12 | % | ||||||||||