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County Bancorp, Inc. Announces Second Quarter 2015 Earnings

20:00 EDT 21 Jul 2015 | Globe Newswire

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. 

 


 

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

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