County Bancorp, Inc. Announces 7.6% Loan Growth and Third Quarter 2015 Net Income of $3.3 Million

Q3 Highlights

Net income of $3.3 million
Net loan growth of $49.7 million
Return on average assets of 1.63%
$867 thousand negative provision for loan losses

MANITOWOC, Wis., Oct. 21, 2015 (GLOBE NEWSWIRE) -- County Bancorp, Inc. (NASDAQ:ICBK) today reported third quarter 2015 net income of $3.3 million. This represents an increase of $1.0 million compared to the net income of the third quarter of 2014. Net income for the nine months ended September 30, 2015 was $8.1 million compared to $6.1 million for the same period in 2014. This represents a return on average assets of 1.36% for the nine months ended September 30, 2015 compared to 1.10% for the nine months ended September 30, 2014.

“We are very pleased with our third quarter results, which were highlighted by solid loan growth quarter-over-quarter and year-over-year, primarily in the agricultural space,” said Timothy J. Schneider, President of County Bancorp, Inc. and CEO of its wholly-owned bank subsidiary, Investors Community Bank. “Asset quality continues to improve and, despite growth in our loan portfolio, we were able to have a recovery of loan losses for the quarter. Additionally, in this highly competitive market, we have been able to improve our net interest margin. As a part of our strategic focus, we continue to seek talent in the business banking sector and evaluate acquisition opportunities.”

Total assets of $844.8 million at September 30, 2015 increased $63.7 million, or 8.2%, over total assets as of June 30, 2015 of $781.1 million. Total loans increased $49.6 million, or 7.6%, to $704.0 million at September 30, 2015 from $654.4 million at June 30, 2015.

Non-performing assets decreased 31.4% to $14.2 million at September 30, 2015 from $20.7 million at September 30, 2014, and decreased 22.5% from June 30, 2015 of $18.3 million. This improvement year-over-year was primarily due to other real estate owned, which declined from $8.1 million at September 30, 2014 to $3.0 million at September 30, 2015. The improvement over the previous quarter was the result of a 26.0% decrease in nonaccrual loans from $15.1 million at June 30, 2015, to $11.2 million at September 30, 2015.

Net income for the quarters ended September 30, 2015 and 2014 was $3.3 million and $2.3 million, respectively. The increase in net income of $1.0 million between the third quarters of 2014 and 2015 is primarily the result of $0.9 million recovery of loan losses recognized as a credit to income during the third quarter of 2015. As the result of that recovery and increased net interest income, diluted earnings per share increased to $0.55 for the three months ended September 30, 2015 from $0.47 for the three months ended September 30, 2014. Return on average assets was 1.63% for the three months ended September 30, 2015 compared to 1.22% for the three months ended September 30, 2014. Net interest margin increased to 3.49% for the three months ended September 30, 2015 compared to 3.27% for the three months ended September 30, 2014.

Net income for the nine months ended September 30, 2015 was $8.1 million compared to $6.1 million for the nine months ended September 30, 2014. This represents year-over-year growth of 31.8% which was primarily driven by a $2.2 million increase in net interest income and a $1.3 million recovery of loan losses, which was partially offset by an increase in income tax expense.

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” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking 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)

	September 30, 2015			June 30, 2015			March 31, 2015			September 30, 2014
Selected Balance Sheet Data:
(In thousands, except per share data)

Total assets	$	844,791		$	781,117		$	781,408		$	743,018
Total loans		704,029			654,389			635,067			591,623
Allowance for loan losses		9,833			9,897			10,269			10,374
Deposits		636,221			608,571			608,441			599,931
Shareholders' equity		104,436			101,024			99,544			77,722
Common equity		96,436			93,024			91,544			69,722

Stock Price Information:
High	$	20.00		$	20.33		$	21.70		N/A
Low	$	16.46		$	17.90		$	16.76		N/A
Market price (2015)/Book value (2014) per common share	$	19.14		$	19.00		$	19.68		$	15.57
Common shares outstanding		5,734			5,734			5,734			4,464


Non-Performing Assets:
(In thousands)

Nonaccrual loans	$	11,172		$	15,098		$	12,834		$	12,550
Other real estate owned		3,024			3,211			5,128			8,149
Total non-performing assets	$	14,196		$	18,309		$	17,962		$	20,699

Restructured loans not on nonaccrual	$	617		$	820		$	826		$	918

Non-performing assets as a % of total loans		2.02	%		2.80	%		2.83	%		3.50	%
Non-performing assets as a % of total assets		1.68	%		2.34	%		2.30	%		2.79	%
Allowance for loan losses as a % of nonperforming assets		69.27	%		54.06	%		57.17	%		50.12	%
Allowance for loan losses as a % of total loans		1.40	%		1.51	%		1.62	%		1.75	%

Net charge-off (recoveries) year-to-date		(555	)		248			(268	)		121
Recovery of loan loss year-to-date		(1,325	)		(458	)		(602	)		-


	For the three months ended						For the nine months ended
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
Selected Income Statement Data:
(In thousands, except per share data)

Net interest income	$	6,871		$	5,805		$	19,261		$	17,099
Recovery of loan losses		(867	)		-			(1,325	)		-
Net interest income after provision for (recovery of) loan losses		7,738			5,805			20,586			17,099
Non-interest income		1,723			1,798			5,310			5,167
Non-interest expense		4,135			4,264			12,983			12,735
Income tax expense		1,996			1,068			4,839			3,403
Net income	$	3,330		$	2,271		$	8,074		$	6,128

Return on average assets		1.63	%		1.22	%		1.36	%		1.10	%
Return on average shareholders' equity		11.32	%		9.88	%		9.44	%		9.08	%
Return on average common shareholders' equity⁽¹⁾		13.58	%		12.51	%		11.28	%		11.50	%
Efficiency ratio ⁽¹⁾		48.42	%		53.23	%		51.04	%		52.87	%

Per Common Share Data:
Basic	$	0.56		$	0.48		$	1.37		$	1.29
Diluted	$	0.55		$	0.47		$	1.34		$	1.26
Dividends declared	$	0.04		$	-		$	0.12		$	-

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

Non interest income:
Service charges	$	238		$	388		$	744		$	559
Loan servicing fees		1,236			1,183			3,648			3,518
Loan servicing rights		(51	)		84			(25	)		116
Gain on sale of loans		44			69			166			251
Income on OREO		33			100			243			509
Other		223			(26	)		534			214
Total	$	1,723		$	1,798		$	5,310		$	5,167

Non-interest expense:
Employee compensation and benefits	$	2,643		$	2,570		$	8,232		$	7,628
Occupancy		100			75			260			229
Information processing		183			361			527			641
Professional fees		513			343			900			696
FDIC assessment		101			121			321			397
OREO expenses		121			192			261			686
Writedown of OREO		-			44			182			729
Net loss (gain) on OREO		(26	)		173			260			235
Business development		147			203			371			402
Other		353			182			1,669			1,092
Total	$	4,135		$	4,264		$	12,983		$	12,735

Non-GAAP Financial Measures

Return on average common shareholders' equity reconciliation:
Return on average shareholders' equity		11.32	%		9.88	%		9.44	%		9.08	%
Effect of excluding average preferred shareholders' equity		2.26	%		2.63	%		1.84	%		2.42	%
Return on average common shareholders' equity		13.58	%		12.51	%		11.28	%		11.50	%

Efficiency ratio GAAP to non-GAAP reconciliation:
Non-interest expense	$	4,135		$	4,264		$	12,983		$	12,735
Less: net (loss)/gain on sales and write-downs of OREO		26			(217	)		(442	)		(964	)
Adjusted non-interest expense (non-GAAP)	$	4,161		$	4,047		$	12,541		$	11,771

Net interest income	$	6,871		$	5,805		$	19,261		$	17,099
Non-interest income		1,723			1,798			5,310			5,167
Operating revenue	$	8,594		$	7,603		$	24,571		$	22,266
Efficiency ratio		48.42	%		53.23	%		51.04	%		52.87	%

	Three Months Ended
	September 30, 2015								September 30, 2014
	Average Balance⁽¹⁾			Income/ Expense		Yields/ Rates			Average Balance⁽¹⁾			Income/ Expense		Yields/ Rates
Assets
Investment securities	$	84,528		$	359		1.70	%	$	76,259		$	334		1.75	%
Loans ⁽²⁾		691,049			8,393		4.86	%		590,272			7,225		4.90	%
Interest bearing deposits due from other banks		12,741			11		0.35	%		43,837			23		0.21	%
Total interest-earning assets	$	788,318		$	8,763		4.45	%	$	710,368		$	7,582		4.27	%

Allowance for loan losses		(10,462	)							(10,474	)
Other assets		40,043								45,542
Total assets	$	817,899							$	745,436

Liabilities
Savings, NOW, money market, interest checking		162,719			194		0.48	%		138,713			166		0.48	%
Time deposits		395,967			1,381		1.40	%		404,854			1,383		1.37	%
Total interest-bearing deposits	$	558,686		$	1,575		1.13	%	$	543,567		$	1,549		1.14	%
Other borrowings		8,830			63		2.83	%		10,629			32		1.19	%
FHLB advances		52,058			157		1.20	%		19,609			77		1.56	%
Junior subordinated debentures		12,372			99		3.21	%		12,372			120		3.88	%
Total interest-bearing liabilities	$	631,946		$	1,894		1.20	%	$	586,177		$	1,778		1.21	%

Non-interest bearing deposits		60,196								60,156
Other liabilities		8,099								7,188
Total liabilities	$	700,241							$	653,521

SBLF preferred stock⁽³⁾		15,000								15,000
Shareholders' equity		102,658								76,915
Total liabilities and equity	$	817,899							$	745,436

Net interest income					6,869								5,804
Interest rate spread ⁽⁴⁾							3.25	%							3.06	%
Net interest margin ⁽⁵⁾							3.49	%							3.27	%
Ratio of interest-earning assets to interest -bearing liabilities		1.25								1.21

	Nine Months Ended
	September 30, 2015								September 30, 2014
	Average Balance⁽¹⁾			Income/ Expense		Yields/ Rates			Average Balance⁽¹⁾			Income/ Expense		Yields/ Rates
Assets
Investment securities	$	82,187		$	1,037		1.68	%	$	74,402		$	1,026		1.84	%
Loans ⁽²⁾		661,797			23,687		4.77	%		582,616			21,704		4.97	%
Interest bearing deposits due from other banks		17,715			41		0.31	%		50,305			90		0.24	%
Total interest-earning assets	$	761,699		$	24,765		4.34	%	$	707,323		$	22,820		4.30	%

Allowance for loan losses		(10,438	)							(10,531	)
Other assets		42,010								48,751
Total assets	$	793,271							$	745,543

Liabilities
Savings, NOW, money market, interest checking		154,046			543		0.47	%		130,884			468		0.48	%
Time deposits		395,005			3,998		1.35	%		417,125			4,198		1.34	%
Total interest-bearing deposits	$	549,051		$	4,541		1.10	%	$	548,009		$	4,666		1.14	%
Other borrowings		9,369			221		3.15	%		12,377			463		4.99	%
FHLB advances		39,276			403		1.37	%		19,271			232		1.61	%
Junior subordinated debentures		12,372			339		3.66	%		12,372			360		3.88	%
Total interest-bearing liabilities	$	610,068		$	5,504		1.20	%	$	592,029		$	5,721		1.29	%

Non-interest bearing deposits		61,236								56,733
Other liabilities		7,900								6,828
Total liabilities	$	679,204							$	655,590

SBLF preferred stock⁽³⁾		15,000								15,000
Shareholders' equity		99,067								74,953
Total liabilities and equity	$	793,271							$	745,543

Net interest income					19,261								17,099
Interest rate spread ⁽⁴⁾							3.13	%							3.01	%
Net interest margin ⁽⁵⁾							3.37	%							3.22	%
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.

Investor Relations Contact

Timothy J. Schneider
CEO, Investors Community Bank
Phone: (920) 686-5604 
Email: tschneider@investorscommunitybank.com

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.

You just read:

County Bancorp, Inc. Announces 7.6% Loan Growth and Third Quarter 2015 Net Income of $3.3 Million

Distribution channels: Banking, Finance & Investment Industry

EIN Presswire's priority is author transparency. We do our best to weed out false and misleading content. The content above is the sole responsibility of the author who makes it available. If you have any complaints, kindly contact the author above.