Exhibit 99.1
FOR IMMEDIATE RELEASE
COUNTY BANCORP, INC. ANNOUNCES FOURTH QUARTER AND
YEAR-END 2020 FINANCIAL RESULTS
Strong execution and growing business momentum drive fourth quarter net income growth of 36% year-over-year
Company enters 2021 from a position of strength and with a renewed focus on growth
Highlights
|
|
• |
Net income of $4.5 million for the fourth quarter of 2020; $5.5 million for the year 2020 |
|
|
• |
Diluted earnings per share of $0.70 for the fourth quarter of 2020; $0.79 for the year 2020 |
|
|
• |
Loans sold with servicing retained increased $14.7 million since September 30, 2020 and $60.8 million since December 31, 2019 |
|
|
• |
Client deposits (demand deposits, NOW, savings, money market accounts, and certificates of deposit) increased $18.4 million during the fourth quarter of 2020 and by $80.4 million since December 31, 2019 |
|
|
• |
Net interest margin for the fourth quarter of 2020 increased by 66 basis points to 3.06% compared to the sequential quarter and 17 basis points year-over-year |
|
|
• |
Cost of funds decreased by 10 basis points compared to the sequential quarter to 1.42%, a decrease of 71 basis points since December 31, 2019 |
|
|
• |
Loans in payment deferral associated with COVID-19 customer support programs declined $83.7 million to $16.8 million, or 1.7%, of loans since September 30, 2020 |
Manitowoc, Wisconsin, January 21, 2021 — 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 financial results for the fourth quarter and year ended December 31, 2020. Net income was $4.5 million, or $0.70 per diluted share, for the fourth quarter of 2020, compared to net income of $3.3 million, or $0.47 per diluted share, for the fourth quarter of 2019. For the year ended December 31, 2020, net income was $5.5 million, or $0.79 per diluted share, compared to net income of $16.5 million, or $2.36 per diluted share, for the year ended December 31, 2019. The net income for the year ended December 31, 2020 included a $5.0 million goodwill impairment charge, or $0.77 loss per diluted share, in the first quarter of 2020. Excluding that charge, net income for the year ended December 31, 2020 would have been $10.1 million, or $1.56 per diluted share.
Tim Schneider, President of County Bancorp, Inc., noted, “I am very proud of what our team accomplished in a challenging year. We transformed the funding side of our balance sheet with 10% growth in client deposits and a 53% reduction in wholesale deposits in 2020. We continued to have strong growth in loans sold and serviced, which has expanded our noninterest income. Additionally, our adverse classified asset ratio improved in the quarter due to sales of OREO properties, and we saw payment deferrals associated with COVID-19 drop to less than 2% of total loans.”
Schneider continued, “As we look to 2021, improvements in milk prices continue to bolster our clients’ cash flows and we expect to see continued improvement in our overall credit metrics. Our strong performance through a challenging 2020 reinforces our faith in our long-term prospects and ability to grow our business, as evidenced by our repurchase of 570,842 shares of our common stock in 2020, including 107,437 shares during the fourth quarter. We believe we have the right strategy to maintain the momentum as we shift our attention to long-term growth in 2021. We look forward to partnering and growing with our commercial, agricultural and consumer customers in 2021 and beyond.”
Loans and Securities
|
|
• |
Total loans decreased $79.6 million, or 7.4%, during the fourth quarter of 2020, to $1.0 billion, and decreased $39.5 million, or 3.8%, since December 31, 2019, primarily due to $60.6 million of Paycheck Protection Program (“PPP”) loans being forgiven by the Small Business Administration (“SBA”) during the fourth quarter of 2020. This represented 61.6% of PPP loans originated in 2020 and as of December 31, 2020, the Company had $37.8 million of PPP loans remaining in the loan portfolio, and $1.2 million of SBA origination fees were deferred on the balance sheet until the remaining loans are forgiven. |
|
|
• |
Loan participations the Company continued to service were $812.6 million as of December 31, 2020, an increase of $14.7 million, or 1.9%, compared to September 30, 2020, and an increase of $60.8 million, or 8.1%, compared to December 31, 2019. |
|
|
• |
As of December 31, 2020, there were 24 customer relationships with loans in payment deferral associated with COVID-19 customer support programs totaling $16.8 million, or 1.7% of total loans, which is a decrease of $83.7 million, or 83.3%, since September 30, 2020. |
|
|
• |
During the fourth quarter of 2020, investments increased by $54.4 million, or 18.2%, and increased $194.1 million, or 122.3%, since December 31, 2019. For the year ended December 31, 2020 purchases totaling $247.2 million were offset in part by $34.5 million in security sales and $25.7 million in maturities. Gain on sale of securities during 2020 was $0.7 million. |
Deposits
|
|
• |
Total deposits as of December 31, 2020 were $1.0 billion, a decrease of $9.3 million, or 0.9%, from September 30, 2020, and a decrease $60.6 million, or 5.5%, since December 31, 2019. |
|
|
• |
Client deposits (demand deposits, NOW accounts, savings accounts, money market accounts, and certificates of deposit) increased $18.4 million, or 2.1%, from September 30, 2020, to $916.0 million, and increased $80.4 million, or 9.6%, since December 31, 2019. |
|
|
• |
The Company continued to decrease its reliance on brokered deposits and national certificate of deposits by $27.8 million, or 18.2%, to $124.8 million during the fourth quarter of 2020, and decreased by $141.0 million, or 53.1%, since December 31, 2019. |
Common Stock Share Repurchase
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• |
During the fourth quarter of 2020, the Company repurchased 107,437 shares of its common stock at a weighted average price of $22.64 per share. |
|
|
• |
For the year ended December 31, 2020, the Company repurchased 570,842 shares of its common stock at a weighted average price of $21.89 per share. |
Net Interest Income and Margin
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|
• |
Net interest margin for the quarter ended December 31, 2020 was 3.06%, which was an increase of 66 basis points compared to the sequential quarter and an increase of 17 basis points year-over-year. The SBA PPP origination fees of $3.1 million that were recognized during the fourth quarter of 2020 in connection with the PPP loans that were forgiven accounted for 57 basis points of the total margin increase. The issuance of subordinated debt during 2020 adversely affected net interest margin by 4 and 38 basis points for the quarter ended December 31, 2020 compared to the quarters ended September 30, 2020 and December 31, 2019, respectively. |
|
|
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• |
Interest income on investment securities increased $0.5 million and $0.9 million, quarter-to-quarter and year-over-year, respectively, due to shifting balances from interest-bearing deposits with banks to investment securities with higher yields. |
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|
|
• |
Loan interest income (including fees) increased $1.1 million compared to the sequential quarter primarily due to the previously mentioned SBA PPP loan origination fees. Year-over-year, loan interest income decreased $1.0 million primarily due to lower yields on the previously mentioned PPP loans. |
|
|
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• |
Interest expense on savings, NOW, money market, and interest checking accounts decreased, despite an increase in average balance, by 10 basis points in the sequential quarter and 73 basis points year-over year due to the market-driven drop in the federal funds rates. |
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• |
Interest expense on time deposits decreased quarter-over-quarter due in part to the Company’s continued focus on decreasing reliance on time deposit balances for funding and a decline in the federal funds rate. Rates paid on time deposits decreased by 10 and 52 basis points in the sequential quarter and year-over-year, respectively, which also contributed to the overall decrease in the cost of funds. |
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• |
The Company issued $22.4 million of subordinated debt during 2020 to strengthen the Company’s capital structure. The issuance resulted in an increase in interest expense on subordinated debt year of 38 basis points year-over-year. |
|
The table below presents the effects of changing rates and volumes on net interest income for the periods indicated.
|
|
|
Three Months Ended December 31, 2020 v. Three Months Ended September 30, 2020 |
|
|
Three Months Ended December 31, 2020 v. Three Months Ended December 31, 2019 |
|
||||||||||||||||||
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Increase (Decrease) Due to Change in Average |
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|
Increase (Decrease) Due to Change in Average |
|
||||||||||||||||||
|
|
|
Volume |
|
|
Rate |
|
|
Net |
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Volume |
|
|
Rate |
|
|
Net |
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||||||
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|
(dollars in thousands) |
|
|||||||||||||||||||||
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Interest Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities |
|
$ |
405 |
|
|
$ |
79 |
|
|
$ |
484 |
|
|
$ |
990 |
|
|
$ |
(118 |
) |
|
$ |
872 |
|
|
Loans |
|
|
(438 |
) |
|
|
1,581 |
|
|
|
1,143 |
|
|
|
(253 |
) |
|
|
(701 |
) |
|
|
(954 |
) |
|
Federal funds sold and interest-bearing deposits with banks |
|
|
(22 |
) |
|
|
14 |
|
|
|
(8 |
) |
|
|
(172 |
) |
|
|
(260 |
) |
|
|
(432 |
) |
|
Total interest income |
|
|
(55 |
) |
|
|
1,674 |
|
|
|
1,619 |
|
|
|
565 |
|
|
|
(1,079 |
) |
|
|
(514 |
) |
|
Interest Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW, money market and interest checking |
|
$ |
18 |
|
|
$ |
(104 |
) |
|
$ |
(86 |
) |
|
$ |
422 |
|
|
$ |
(915 |
) |
|
$ |
(493 |
) |
|
Time deposits |
|
|
(234 |
) |
|
|
(111 |
) |
|
|
(345 |
) |
|
|
(1,071 |
) |
|
|
(736 |
) |
|
|
(1,807 |
) |
|
Other borrowings |
|
|
(35 |
) |
|
|
(46 |
) |
|
|
(81 |
) |
|
|
69 |
|
|
|
(1 |
) |
|
|
68 |
|
|
FHLB advances |
|
|
27 |
|
|
|
(40 |
) |
|
|
(13 |
) |
|
|
95 |
|
|
|
(26 |
) |
|
|
69 |
|
|
Junior subordinated debentures |
|
|
19 |
|
|
|
6 |
|
|
|
25 |
|
|
|
368 |
|
|
|
45 |
|
|
|
413 |
|
|
Total interest expense |
|
$ |
(205 |
) |
|
$ |
(295 |
) |
|
$ |
(500 |
) |
|
$ |
(117 |
) |
|
$ |
(1,633 |
) |
|
$ |
(1,750 |
) |
|
Net interest income |
|
$ |
150 |
|
|
$ |
1,969 |
|
|
$ |
2,119 |
|
|
$ |
682 |
|
|
$ |
554 |
|
|
$ |
1,236 |
|
The following table sets forth average balances, average yields and rates, and income and expenses for the periods indicated.
|
|
|
For the Three Months Ended |
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|||||||||||||||||||||||||||||||||
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|
December 31, 2020 |
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|
September 30, 2020 |
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|
December 31, 2019 |
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|
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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 |
|
$ |
322,706 |
|
|
$ |
1,978 |
|
|
|
2.44 |
% |
|
$ |
256,059 |
|
|
$ |
1,494 |
|
|
|
2.32 |
% |
|
$ |
159,202 |
|
|
$ |
1,106 |
|
|
|
2.78 |
% |
|
Loans (2) |
|
|
1,040,080 |
|
|
|
12,737 |
|
|
|
4.87 |
% |
|
|
1,083,383 |
|
|
|
11,594 |
|
|
|
4.26 |
% |
|
|
1,061,432 |
|
|
|
13,691 |
|
|
|
5.16 |
% |
|
Interest bearing deposits due from other banks |
|
|
37,385 |
|
|
|
10 |
|
|
|
0.11 |
% |
|
|
92,701 |
|
|
|
18 |
|
|
|
0.08 |
% |
|
|
98,848 |
|
|
|
441 |
|
|
|
1.79 |
% |
|
Total interest-earning assets |
|
$ |
1,400,171 |
|
|
$ |
14,725 |
|
|
|
4.18 |
% |
|
$ |
1,432,143 |
|
|
$ |
13,106 |
|
|
|
3.64 |
% |
|
$ |
1,319,482 |
|
|
$ |
15,238 |
|
|
|
4.62 |
% |
|
Allowance for loan losses |
|
|
(18,535 |
) |
|
|
|
|
|
|
|
|
|
|
(18,641 |
) |
|
|
|
|
|
|
|
|
|
|
(14,868 |
) |
|
|
|
|
|
|
|
|
|
Other assets |
|
|
87,785 |
|
|
|
|
|
|
|
|
|
|
|
86,109 |
|
|
|
|
|
|
|
|
|
|
|
77,934 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,469,421 |
|
|
|
|
|
|
|
|
|
|
$ |
1,499,611 |
|
|
|
|
|
|
|
|
|
|
$ |
1,382,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings, NOW, money market, interest checking |
|
$ |
421,969 |
|
|
$ |
383 |
|
|
|
0.36 |
% |
|
$ |
406,888 |
|
|
$ |
469 |
|
|
|
0.46 |
% |
|
$ |
322,629 |
|
|
$ |
876 |
|
|
|
1.09 |
% |
|
Time deposits |
|
|
450,193 |
|
|
|
2,099 |
|
|
|
1.85 |
% |
|
|
499,665 |
|
|
|
2,444 |
|
|
|
1.95 |
% |
|
|
658,864 |
|
|
|
3,905 |
|
|
|
2.37 |
% |
|
Total interest-bearing deposits |
|
$ |
872,162 |
|
|
$ |
2,482 |
|
|
|
1.13 |
% |
|
$ |
906,553 |
|
|
$ |
2,913 |
|
|
|
1.28 |
% |
|
$ |
981,493 |
|
|
$ |
4,781 |
|
|
|
1.95 |
% |
|
Other borrowings |
|
|
75,341 |
|
|
|
77 |
|
|
|
0.41 |
% |
|
|
101,829 |
|
|
|
158 |
|
|
|
0.62 |
% |
|
|
799 |
|
|
|
9 |
|
|
|
4.60 |
% |
|
FHLB advances |
|
|
96,191 |
|
|
|
285 |
|
|
|
1.18 |
% |
|
|
89,622 |
|
|
|
298 |
|
|
|
1.32 |
% |
|
|
44,400 |
|
|
|
216 |
|
|
|
1.94 |
% |
|
Junior subordinated debentures |
|
|
67,055 |
|
|
|
1,107 |
|
|
|
6.57 |
% |
|
|
65,903 |
|
|
|
1,082 |
|
|
|
6.53 |
% |
|
|
44,839 |
|
|
|
694 |
|
|
|
6.19 |
% |
|
Total interest-bearing liabilities |
|
$ |
1,110,749 |
|
|
$ |
3,951 |
|
|
|
1.42 |
% |
|
$ |
1,163,907 |
|
|
$ |
4,451 |
|
|
|
1.52 |
% |
|
$ |
1,071,531 |
|
|
$ |
5,700 |
|
|
|
2.13 |
% |
|
Non-interest-bearing deposits |
|
|
168,765 |
|
|
|
|
|
|
|
|
|
|
|
147,595 |
|
|
|
|
|
|
|
|
|
|
|
123,541 |
|
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
18,758 |
|
|
|
|
|
|
|
|
|
|
|
18,314 |
|
|
|
|
|
|
|
|
|
|
|
16,749 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
$ |
1,298,272 |
|
|
|
|
|
|
|
|
|
|
$ |
1,329,816 |
|
|
|
|
|
|
|
|
|
|
$ |
1,211,821 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
171,149 |
|
|
|
|
|
|
|
|
|
|
|
169,795 |
|
|
|
|
|
|
|
|
|
|
|
170,727 |
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity |
|
$ |
1,469,421 |
|
|
|
|
|
|
|
|
|
|
$ |
1,499,611 |
|
|
|
|
|
|
|
|
|
|
$ |
1,382,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
|
|
|
|
$ |
10,774 |
|
|
|
|
|
|
|
|
|
|
$ |
8,655 |
|
|
|
|
|
|
|
|
|
|
$ |
9,538 |
|
|
|
|
|
|
Interest rate spread (3) |
|
|
|
|
|
|
|
|
|
|
2.76 |
% |
|
|
|
|
|
|
|
|
|
|
2.12 |
% |
|
|
|
|
|
|
|
|
|
|
2.49 |
% |
|
Net interest margin (4) |
|
|
|
|
|
|
|
|
|
|
3.06 |
% |
|
|
|
|
|
|
|
|
|
|
2.40 |
% |
|
|
|
|
|
|
|
|
|
|
2.89 |
% |
|
Ratio of interest-earning assets to interest-bearing liabilities |
|
|
1.26 |
|
|
|
|
|
|
|
|
|
|
|
1.23 |
|
|
|
|
|
|
|
|
|
|
|
1.23 |
|
|
|
|
|
|
|
|
|
|
|
(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 right origination increased quarter-over-quarter and year-over-year. The increase quarter-over-quarter was primarily due to the $14.7 million increase in loans sold. Loan servicing rights as a percent of loans serviced increased to 2.26% at December 31, 2020 from 2.16% at September 30, 2020. The year-over-year increase from 1.66% of loan servicing rights as a percent of loans serviced at December 31, 2019 was due in part to loans being recorded at fair value in 2020 versus amortized cost in 2019. |
|
|
|
For the Three Months Ended |
|
|||||||||||||||||
|
|
|
December 31, 2020 |
|
|
September 30, 2020 |
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|||||
|
|
|
(dollars in thousands) |
|
|||||||||||||||||
|
Non-Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges |
|
$ |
108 |
|
|
$ |
108 |
|
|
$ |
139 |
|
|
$ |
113 |
|
|
$ |
117 |
|
|
Crop insurance commission |
|
|
517 |
|
|
|
271 |
|
|
|
229 |
|
|
|
229 |
|
|
|
432 |
|
|
Gain on sale of loans, net |
|
|
219 |
|
|
|
17 |
|
|
|
4 |
|
|
|
38 |
|
|
|
34 |
|
|
Loan servicing fees |
|
|
1,974 |
|
|
|
2,054 |
|
|
|
1,923 |
|
|
|
1,831 |
|
|
|
1,778 |
|
|
Loan servicing right origination |
|
|
1,193 |
|
|
|
717 |
|
|
|
275 |
|
|
|
289 |
|
|
|
1,146 |
|
|
Income on OREO |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
54 |
|
|
Gain on sale of securities |
|
|
— |
|
|
|
101 |
|
|
|
570 |
|
|
|
— |
|
|
|
— |
|
|
Referral fees |
|
|
64 |
|
|
|
110 |
|
|
|
121 |
|
|
|
17 |
|
|
|
20 |
|
|
Other |
|
|
283 |
|
|
|
294 |
|
|
|
237 |
|
|
|
203 |
|
|
|
161 |
|
|
Total non-interest income |
|
$ |
4,358 |
|
|
$ |
3,672 |
|
|
$ |
3,501 |
|
|
$ |
2,720 |
|
|
$ |
3,742 |
|
|
|
|
For the Three Months Ended |
|
|||||||||||||||||
|
|
|
December 31, 2020 |
|
|
September 30, 2020 |
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|||||
|
|
|
(dollars in thousands) |
|
|||||||||||||||||
|
Loan servicing rights, end of period |
|
$ |
18,396 |
|
|
$ |
17,203 |
|
|
$ |
16,486 |
|
|
$ |
16,211 |
|
|
$ |
12,509 |
|
|
Loans serviced, end of period |
|
|
812,560 |
|
|
|
797,819 |
|
|
|
762,058 |
|
|
|
747,553 |
|
|
|
751,738 |
|
|
Loan servicing rights as a % of loans serviced |
|
|
2.26 |
% |
|
|
2.16 |
% |
|
|
2.16 |
% |
|
|
2.17 |
% |
|
|
1.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loan servicing fees |
|
$ |
1,974 |
|
|
$ |
2,054 |
|
|
$ |
1,923 |
|
|
$ |
1,831 |
|
|
$ |
1,778 |
|
|
Average loans serviced |
|
|
805,190 |
|
|
|
779,939 |
|
|
|
754,806 |
|
|
|
749,646 |
|
|
|
744,281 |
|
|
Annualized loan servicing fees as a % of average loans serviced |
|
|
0.98 |
% |
|
|
1.05 |
% |
|
|
1.02 |
% |
|
|
0.98 |
% |
|
|
0.96 |
% |
Non-Interest Expense
|
|
• |
The increase in employee compensation and benefits expense of $1.9 million in the fourth quarter of 2020 compared to the prior quarter was primarily the result of an additional accrual of $1.6 million for incentive compensation related to 2020 financial results. The $2.2 million increase for the year ended December 31, 2020 compared to the prior year was primarily the result of a 13.9% increase in headcount. |
|
|
|
• |
During the fourth quarter of 2020, three properties in other real estate owned totaling $2.0 million were sold for a gain of $0.3 million. During 2020, six properties in other real estate owned totaling $3.5 million were sold for a gain of $0.3 million. |
|
|
|
|
For the Three Months Ended |
|
|||||||||||||||||
|
|
|
December 31, 2020 |
|
|
September 30, 2020 |
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|||||
|
|
|
(dollars in thousands, except per share data) |
|
|||||||||||||||||
|
Non-Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
$ |
6,687 |
|
|
$ |
4,766 |
|
|
$ |
4,594 |
|
|
$ |
5,260 |
|
|
$ |
5,696 |
|
|
Occupancy |
|
|
297 |
|
|
|
321 |
|
|
|
305 |
|
|
|
354 |
|
|
|
417 |
|
|
Information processing |
|
|
656 |
|
|
|
641 |
|
|
|
663 |
|
|
|
670 |
|
|
|
645 |
|
|
Professional fees |
|
|
582 |
|
|
|
555 |
|
|
|
480 |
|
|
|
401 |
|
|
|
371 |
|
|
Business development |
|
|
136 |
|
|
|
305 |
|
|
|
333 |
|
|
|
366 |
|
|
|
335 |
|
|
OREO expenses |
|
|
20 |
|
|
|
47 |
|
|
|
44 |
|
|
|
116 |
|
|
|
59 |
|
|
Writedown of OREO |
|
|
148 |
|
|
|
— |
|
|
|
— |
|
|
|
1,360 |
|
|
|
376 |
|
|
Net loss (gain) on sale of OREO |
|
|
(326 |
) |
|
|
9 |
|
|
|
— |
|
|
|
4 |
|
|
|
(231 |
) |
|
Depreciation and amortization |
|
|
289 |
|
|
|
295 |
|
|
|
303 |
|
|
|
301 |
|
|
|
319 |
|
|
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,038 |
|
|
|
— |
|
|
Other |
|
|
1,005 |
|
|
|
728 |
|
|
|
743 |
|
|
|
1,148 |
|
|
|
2,278 |
|
|
Total non-interest expense |
|
$ |
9,494 |
|
|
$ |
7,667 |
|
|
$ |
7,465 |
|
|
$ |
15,018 |
|
|
$ |
10,265 |
|
Asset Quality
|
|
• |
The decrease in substandard loans and the adverse classified asset ratio in the quarter were primarily due to the charge-off of $3.4 million of commercial loans. |
|
|
|
December 31, 2020 |
|
|
September 30, 2020 |
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|||||
|
|
|
(dollars in thousands) |
|
|||||||||||||||||
|
Loans by risk category(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sound/Acceptable/Satisfactory/ Low Satisfactory |
|
$ |
716,313 |
|
|
$ |
800,451 |
|
|
$ |
798,945 |
|
|
$ |
706,247 |
|
|
$ |
724,444 |
|
|
Watch |
|
|
190,101 |
|
|
|
185,254 |
|
|
|
198,044 |
|
|
|
219,459 |
|
|
|
216,098 |
|
|
Special Mention |
|
|
2,501 |
|
|
|
1,851 |
|
|
|
1,856 |
|
|
|
15,036 |
|
|
|
9,239 |
|
|
Substandard Performing |
|
|
40,420 |
|
|
|
41,577 |
|
|
|
47,741 |
|
|
|
34,179 |
|
|
|
49,774 |
|
|
Substandard Impaired |
|
|
46,950 |
|
|
|
46,793 |
|
|
|
40,938 |
|
|
|
37,515 |
|
|
|
36,218 |
|
|
Total loans |
|
$ |
996,285 |
|
|
$ |
1,075,926 |
|
|
$ |
1,087,524 |
|
|
$ |
1,012,436 |
|
|
$ |
1,035,773 |
|
|
Adverse classified asset ratio (2) |
|
|
39.43 |
% |
|
|
42.64 |
% |
|
|
41.73 |
% |
|
|
32.35 |
% |
|
|
39.85 |
% |
|
|
(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
|
|
• |
A recovery of loan loss provisions of $0.5 million was recorded for the three months ended December 31, 2020 compared to a provision of $0.1 million for the three months ended September 30, 2020. The decrease in the provision relative to the previous quarter was driven by a reduction of qualitative risk factors related to industries at risk due to COVID-19, which was partially offset by general reserve increases due to actual loss rates incurred. |
|
|
• |
Non-performing assets decreased in the quarter by $1.7 million, or 3.9%, sequentially compared to the third quarter of 2020. Year-over-year, non-performing assets increased $6.2 million, or 17.0%, due to a $8.7 million increase in non-accrual agricultural loans from one customer and a $2.0 million increase in non-accrual commercial loans, which were partially offset by a $4.4 million decrease in OREO properties. |
|
|
|
December 31, 2020 |
|
|
September 30, 2020 |
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|||||
|
|
|
(dollars in thousands) |
|
|||||||||||||||||
|
Non-Performing Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans |
|
$ |
41,624 |
|
|
$ |
41,351 |
|
|
$ |
35,456 |
|
|
$ |
32,051 |
|
|
$ |
30,968 |
|
|
Other real estate owned |
|
|
1,077 |
|
|
|
3,064 |
|
|
|
2,629 |
|
|
|
3,247 |
|
|
|
5,521 |
|
|
Total non-performing assets |
|
$ |
42,701 |
|
|
$ |
44,415 |
|
|
$ |
38,085 |
|
|
$ |
35,298 |
|
|
$ |
36,489 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Performing TDRs not on nonaccrual |
|
$ |
18,592 |
|
|
$ |
19,036 |
|
|
$ |
21,986 |
|
|
$ |
21,853 |
|
|
$ |
21,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-performing assets as a % of total loans |
|
|
4.29 |
% |
|
|
4.13 |
% |
|
|
3.50 |
% |
|
|
3.49 |
% |
|
|
3.52 |
% |
|
Non-performing assets as a % of total assets |
|
|
2.90 |
% |
|
|
2.98 |
% |
|
|
2.52 |
% |
|
|
2.61 |
% |
|
|
2.65 |
% |
|
Allowance for loan losses as a % of total loans |
|
|
1.49 |
% |
|
|
1.73 |
% |
|
|
1.71 |
% |
|
|
1.73 |
% |
|
|
1.47 |
% |
|
Net charge-offs (recoveries) quarter- to-date |
|
$ |
3,386 |
|
|
$ |
(1 |
) |
|
$ |
120 |
|
|
$ |
(62 |
) |
|
$ |
(253 |
) |
Conference Call
The Company will host an earnings call tomorrow, January 22, 2021 at 8:30 a.m., CDT, conducted by Timothy J. Schneider, President; Glen L. Stiteley, Chief Financial Officer; David C. Coggins, Chief Banking Officer; John R. Fillingim, Chief Credit Officer; and Matthew R. Lemke, Chief Retail and Deposit Officer. 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 22, 2022, 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, including the effects of the COVID-19 pandemic and its potential effects on the economic environment, our customers and our operations, as well as, any changes to federal, state, or local government laws, regulations, or orders in connection with the pandemic. 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, 2020 |
|
|
September 30, 2020 |
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|||||
|
|
|
(dollars in thousands, except per share data) |
|
|||||||||||||||||
|
Period-End Balance Sheet: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
19,500 |
|
|
$ |
53,283 |
|
|
$ |
127,432 |
|
|
$ |
21,545 |
|
|
$ |
129,011 |
|
|
Securities available-for-sale, at fair value |
|
|
352,854 |
|
|
|
298,476 |
|
|
|
226,971 |
|
|
|
246,148 |
|
|
|
158,733 |
|
|
Loans held for sale |
|
|
35,976 |
|
|
|
2,593 |
|
|
|
11,847 |
|
|
|
14,388 |
|
|
|
2,151 |
|
|
Agricultural loans |
|
|
606,881 |
|
|
|
619,617 |
|
|
|
624,340 |
|
|
|
642,066 |
|
|
|
659,725 |
|
|
Commercial loans |
|
|
313,265 |
|
|
|
317,782 |
|
|
|
328,368 |
|
|
|
325,310 |
|
|
|
331,723 |
|
|
Paycheck Protection Plan loans |
|
|
37,790 |
|
|
|
98,421 |
|
|
|
103,317 |
|
|
|
— |
|
|
|
— |
|
|
Multi-family real estate loans |
|
|
33,457 |
|
|
|
35,496 |
|
|
|
30,439 |
|
|
|
42,198 |
|
|
|
41,070 |
|
|
Residential real estate loans |
|
|
4,627 |
|
|
|
4,489 |
|
|
|
975 |
|
|
|
2,753 |
|
|
|
2,888 |
|
|
Installment and consumer other |
|
|
265 |
|
|
|
121 |
|
|
|
85 |
|
|
|
109 |
|
|
|
367 |
|
|
Total loans |
|
|
996,285 |
|
|
|
1,075,926 |
|
|
|
1,087,524 |
|
|
|
1,012,436 |
|
|
|
1,035,773 |
|
|
Allowance for loan losses |
|
|
(14,808 |
) |
|
|
(18,649 |
) |
|
|
(18,569 |
) |
|
|
(17,547 |
) |
|
|
(15,267 |
) |
|
Net loans |
|
|
981,477 |
|
|
|
1,057,277 |
|
|
|
1,068,955 |
|
|
|
994,889 |
|
|
|
1,020,506 |
|
|
Other assets |
|
|
82,551 |
|
|
|
80,426 |
|
|
|
78,712 |
|
|
|
78,004 |
|
|
|
68,378 |
|
|
Total Assets |
|
$ |
1,472,358 |
|
|
$ |
1,492,055 |
|
|
$ |
1,513,917 |
|
|
$ |
1,354,974 |
|
|
$ |
1,378,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand deposits |
|
$ |
163,202 |
|
|
$ |
158,798 |
|
|
$ |
149,963 |
|
|
$ |
117,434 |
|
|
$ |
138,489 |
|
|
NOW accounts and interest checking |
|
|
96,624 |
|
|
|
78,026 |
|
|
|
81,656 |
|
|
|
64,873 |
|
|
|
63,781 |
|
|
Savings |
|
|
7,367 |
|
|
|
11,900 |
|
|
|
8,369 |
|
|
|
6,566 |
|
|
|
15,708 |
|
|
Money market accounts |
|
|
344,250 |
|
|
|
325,900 |
|
|
|
307,083 |
|
|
|
237,889 |
|
|
|
242,539 |
|
|
Time deposits |
|
|
304,580 |
|
|
|
322,992 |
|
|
|
346,482 |
|
|
|
364,930 |
|
|
|
375,100 |
|
|
Brokered deposits |
|
|
80,456 |
|
|
|
101,808 |
|
|
|
121,503 |
|
|
|
161,882 |
|
|
|
166,340 |
|
|
National time deposits |
|
|
44,347 |
|
|
|
50,747 |
|
|
|
57,997 |
|
|
|
66,386 |
|
|
|
99,485 |
|
|
Total deposits |
|
|
1,040,826 |
|
|
|
1,050,171 |
|
|
|
1,073,053 |
|
|
|
1,019,960 |
|
|
|
1,101,442 |
|
|
Federal Reserve Discount Window advances |
|
|
47,531 |
|
|
|
99,693 |
|
|
|
99,693 |
|
|
|
— |
|
|
|
— |
|
|
FHLB advances |
|
|
129,000 |
|
|
|
84,600 |
|
|
|
93,400 |
|
|
|
109,400 |
|
|
|
44,400 |
|
|
Subordinated debentures |
|
|
67,111 |
|
|
|
67,025 |
|
|
|
61,910 |
|
|
|
44,896 |
|
|
|
44,858 |
|
|
Other liabilities |
|
|
16,114 |
|
|
|
20,656 |
|
|
|
17,336 |
|
|
|
15,672 |
|
|
|
16,050 |
|
|
Total Liabilities |
|
|
1,300,582 |
|
|
|
1,322,145 |
|
|
|
1,345,392 |
|
|
|
1,189,928 |
|
|
|
1,206,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
171,776 |
|
|
|
169,910 |
|
|
|
168,525 |
|
|
|
165,046 |
|
|
|
172,029 |
|
|
Total Liabilities and Shareholders' Equity |
|
$ |
1,472,358 |
|
|
$ |
1,492,055 |
|
|
$ |
1,513,917 |
|
|
$ |
1,354,974 |
|
|
$ |
1,378,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock Price Information: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High - Quarter-to-date |
|
$ |
23.72 |
|
|
$ |
22.00 |
|
|
$ |
24.67 |
|
|
$ |
27.19 |
|
|
$ |
27.98 |
|
|
Low - Quarter-to-date |
|
$ |
18.20 |
|
|
$ |
17.04 |
|
|
$ |
17.13 |
|
|
$ |
13.55 |
|
|
$ |
18.76 |
|
|
Market price - Quarter-end |
|
$ |
22.08 |
|
|
$ |
18.80 |
|
|
$ |
20.93 |
|
|
$ |
18.50 |
|
|
$ |
25.63 |
|
|
Book value per share |
|
$ |
26.42 |
|
|
$ |
25.72 |
|
|
$ |
25.18 |
|
|
$ |
24.17 |
|
|
$ |
24.32 |
|
|
Tangible book value per share (1) |
|
$ |
26.42 |
|
|
$ |
25.71 |
|
|
$ |
25.16 |
|
|
$ |
24.15 |
|
|
$ |
23.58 |
|
|
Common shares outstanding |
|
|
6,197,965 |
|
|
|
6,294,675 |
|
|
|
6,375,150 |
|
|
|
6,496,790 |
|
|
|
6,734,132 |
|
|
|
(1) |
This is a non-GAAP financial measure. A reconciliation to GAAP is included below. |
|
|
|
For the Three Months Ended |
|
|||||||||||||||||
|
|
|
December 31, 2020 |
|
|
September 30, 2020 |
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|||||
|
|
|
(dollars in thousands, except per share data) |
|
|||||||||||||||||
|
Selected Income Statement Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and Dividend Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees(1) |
|
$ |
12,737 |
|
|
$ |
11,594 |
|
|
$ |
12,009 |
|
|
$ |
12,565 |
|
|
$ |
13,671 |
|
|
Taxable securities |
|
|
1,777 |
|
|
|
1,293 |
|
|
|
1,283 |
|
|
|
1,282 |
|
|
|
1,106 |
|
|
Tax-exempt securities |
|
|
201 |
|
|
|
167 |
|
|
|
162 |
|
|
|
6 |
|
|
|
— |
|
|
Federal funds sold and other |
|
|
10 |
|
|
|
52 |
|
|
|
111 |
|
|
|
225 |
|
|
|
442 |
|
|
Total interest and dividend income |
|
|
14,725 |
|
|
|
13,106 |
|
|
|
13,565 |
|
|
|
14,078 |
|
|
|
15,219 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
2,482 |
|
|
|
2,914 |
|
|
|
3,721 |
|
|
|
4,347 |
|
|
|
4,781 |
|
|
FHLB advances and other borrowed funds |
|
|
362 |
|
|
|
456 |
|
|
|
343 |
|
|
|
244 |
|
|
|
225 |
|
|
Subordinated debentures |
|
|
1,107 |
|
|
|
1,082 |
|
|
|
736 |
|
|
|
706 |
|
|
|
695 |
|
|
Total interest expense |
|
|
3,951 |
|
|
|
4,452 |
|
|
|
4,800 |
|
|
|
5,297 |
|
|
|
5,701 |
|
|
Net interest income |
|
|
10,774 |
|
|
|
8,654 |
|
|
|
8,765 |
|
|
|
8,781 |
|
|
|
9,518 |
|
|
Provision for loan losses |
|
|
(455 |
) |
|
|
79 |
|
|
|
1,142 |
|
|
|
2,218 |
|
|
|
(51 |
) |
|
Net interest income after provision for loan losses |
|
|
11,229 |
|
|
|
8,575 |
|
|
|
7,623 |
|
|
|
6,563 |
|
|
|
9,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Services charges |
|
|
108 |
|
|
|
108 |
|
|
|
139 |
|
|
|
113 |
|
|
|
117 |
|
|
Crop insurance commission |
|
|
517 |
|
|
|
271 |
|
|
|
229 |
|
|
|
229 |
|
|
|
432 |
|
|
Gain on sale of loans, net |
|
|
219 |
|
|
|
17 |
|
|
|
4 |
|
|
|
38 |
|
|
|
34 |
|
|
Loan servicing fees |
|
|
1,974 |
|
|
|
2,054 |
|
|
|
1,923 |
|
|
|
1,831 |
|
|
|
1,778 |
|
|
Loan servicing right origination |
|
|
1,193 |
|
|
|
717 |
|
|
|
275 |
|
|
|
289 |
|
|
|
1,146 |
|
|
Income on OREO |
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
— |
|
|
|
54 |
|
|
Gain on sale of securities |
|
|
— |
|
|
|
101 |
|
|
|
570 |
|
|
|
— |
|
|
|
— |
|
|
Referral fees |
|
|
64 |
|
|
|
110 |
|
|
|
121 |
|
|
|
17 |
|
|
|
20 |
|
|
Other |
|
|
283 |
|
|
|
294 |
|
|
|
237 |
|
|
|
203 |
|
|
|
161 |
|
|
Total non-interest income |
|
|
4,358 |
|
|
|
3,672 |
|
|
|
3,501 |
|
|
|
2,720 |
|
|
|
3,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Interest Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
|
6,687 |
|
|
|
4,766 |
|
|
|
4,594 |
|
|
|
5,260 |
|
|
|
5,696 |
|
|
Occupancy |
|
|
297 |
|
|
|
321 |
|
|
|
305 |
|
|
|
354 |
|
|
|
417 |
|
|
Information processing |
|
|
656 |
|
|
|
641 |
|
|
|
663 |
|
|
|
670 |
|
|
|
645 |
|
|
Professional fees |
|
|
582 |
|
|
|
555 |
|
|
|
480 |
|
|
|
401 |
|
|
|
371 |
|
|
Business development |
|
|
136 |
|
|
|
305 |
|
|
|
333 |
|
|
|
366 |
|
|
|
335 |
|
|
OREO expenses |
|
|
20 |
|
|
|
47 |
|
|
|
44 |
|
|
|
116 |
|
|
|
59 |
|
|
Writedown of OREO |
|
|
148 |
|
|
|
— |
|
|
|
— |
|
|
|
1,360 |
|
|
|
376 |
|
|
Net loss (gain) on sale of OREO |
|
|
(326 |
) |
|
|
9 |
|
|
|
— |
|
|
|
4 |
|
|
|
(231 |
) |
|
Depreciation and amortization |
|
|
289 |
|
|
|
295 |
|
|
|
303 |
|
|
|
301 |
|
|
|
319 |
|
|
Goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,038 |
|
|
|
— |
|
|
Other |
|
|
1,005 |
|
|
|
728 |
|
|
|
743 |
|
|
|
1,148 |
|
|
|
2,278 |
|
|
Total non-interest expense |
|
|
9,494 |
|
|
|
7,667 |
|
|
|
7,465 |
|
|
|
15,018 |
|
|
|
10,265 |
|
|
Income before income taxes |
|
|
6,093 |
|
|
|
4,580 |
|
|
|
3,659 |
|
|
|
(5,735 |
) |
|
|
3,046 |
|
|
Income tax expense (benefit) |
|
|
1,575 |
|
|
|
1,164 |
|
|
|
926 |
|
|
|
(547 |
) |
|
|
(258 |
) |
|
NET INCOME (LOSS) |
|
$ |
4,518 |
|
|
$ |
3,416 |
|
|
$ |
2,733 |
|
|
$ |
(5,188 |
) |
|
$ |
3,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share |
|
$ |
0.70 |
|
|
$ |
0.52 |
|
|
$ |
0.40 |
|
|
$ |
(0.79 |
) |
|
$ |
0.47 |
|
|
Diluted earnings (loss) per share |
|
$ |
0.70 |
|
|
$ |
0.52 |
|
|
$ |
0.40 |
|
|
$ |
(0.78 |
) |
|
$ |
0.47 |
|
|
Dividends declared per share |
|
$ |
0.10 |
|
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.07 |
|
|
$ |
0.05 |
|
|
|
(1) |
Referral fees in prior quarters reclassed to non-interest income to match current classification |
|
|
|
|
|
|
For the Three Months Ended |
|
|||||||||||||||||
|
|
|
December 31, 2020 |
|
|
September 30, 2020 |
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|||||
|
|
|
(dollars in thousands, except share data) |
|
|||||||||||||||||
|
Other Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets (1) |
|
|
1.23 |
% |
|
|
0.91 |
% |
|
|
0.74 |
% |
|
|
(1.53 |
)% |
|
|
0.96 |
% |
|
Return on average shareholders' equity (1) |
|
|
10.56 |
% |
|
|
8.05 |
% |
|
|
6.55 |
% |
|
|
(11.97 |
)% |
|
|
7.74 |
% |
|
Return on average common shareholders' equity (1)(2) |
|
|
10.88 |
% |
|
|
8.25 |
% |
|
|
6.63 |
% |
|
|
(12.81 |
)% |
|
|
7.83 |
% |
|
Efficiency ratio (1)(2) |
|
|
63.92 |
% |
|
|
62.64 |
% |
|
|
63.83 |
% |
|
|
74.92 |
% |
|
|
67.65 |
% |
|
Equity to assets ratio |
|
|
11.67 |
% |
|
|
11.39 |
% |
|
|
11.13 |
% |
|
|
12.18 |
% |
|
|
12.48 |
% |
|
Tangible common equity to tangible assets (2) |
|
|
11.12 |
% |
|
|
10.85 |
% |
|
|
10.60 |
% |
|
|
11.58 |
% |
|
|
11.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
4,518 |
|
|
$ |
3,416 |
|
|
$ |
2,733 |
|
|
$ |
(5,188 |
) |
|
$ |
3,304 |
|
|
Less: Preferred stock dividends |
|
|
80 |
|
|
|
80 |
|
|
|
99 |
|
|
|
108 |
|
|
|
117 |
|
|
Income available to common shareholders |
|
$ |
4,438 |
|
|
$ |
3,336 |
|
|
$ |
2,634 |
|
|
$ |
(5,296 |
) |
|
$ |
3,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares issued |
|
|
7,206,238 |
|
|
|
7,202,000 |
|
|
|
7,198,901 |
|
|
|
7,182,945 |
|
|
|
7,173,290 |
|
|
Less: Weighted average treasury shares |
|
|
957,573 |
|
|
|
882,153 |
|
|
|
759,294 |
|
|
|
518,740 |
|
|
|
443,920 |
|
|
Plus: Weighted average non-vested restricted stock units |
|
|
67,529 |
|
|
|
66,492 |
|
|
|
65,291 |
|
|
|
39,785 |
|
|
|
32,125 |
|
|
Weighted average number of common shares outstanding |
|
|
6,316,194 |
|
|
|
6,386,339 |
|
|
|
6,504,898 |
|
|
|
6,703,990 |
|
|
|
6,761,495 |
|
|
Effect of dilutive options |
|
|
28,025 |
|
|
|
20,915 |
|
|
|
28,511 |
|
|
|
49,072 |
|
|
|
44,630 |
|
|
Weighted average number of common shares outstanding used to calculate diluted earnings per common share |
|
|
6,344,219 |
|
|
|
6,407,254 |
|
|
|
6,533,409 |
|
|
|
6,753,062 |
|
|
|
6,806,125 |
|
|
|
(1) |
Annualized |
|
|
(2) |
This is a non-GAAP financial measure. A reconciliation to GAAP is included below. |
Non-GAAP Financial Measures:
|
|
|
For the Three Months Ended |
|
|||||||||||||||||
|
|
|
December 31, 2020 |
|
|
September 30, 2020 |
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
December 31, 2019 |
|
|||||
|
|
|
(dollars in thousands) |
|
|||||||||||||||||
|
Return on average common shareholders' equity reconciliation (1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average shareholders' equity |
|
|
10.56 |
% |
|
|
8.05 |
% |
|
|
6.55 |
% |
|
|
(11.97 |
)% |
|
|
7.74 |
% |
|
Effect of excluding average preferred shareholders' equity |
|
|
0.32 |
% |
|
|
0.20 |
% |
|
|
0.08 |
% |
|
|
(0.84 |
)% |
|
|
0.09 |
% |
|
Return on average common shareholders' equity |
|
|
10.88 |
% |
|
|
8.25 |
% |
|
|
6.63 |
% |
|
|
(12.81 |
)% |
|
|
7.83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest expense |
|
$ |
9,494 |
|
|
$ |
7,667 |
|
|
$ |
7,465 |
|
|
$ |
15,018 |
|
|
$ |
10,265 |
|
|
Less: goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,038 |
) |
|
|
— |
|
|
Less: historical tax credit investment impairment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,149 |
) |
|
Less: net loss on sales and write-downs of OREO |
|
|
178 |
|
|
|
(9 |
) |
|
|
— |
|
|
|
(1,364 |
) |
|
|
(145 |
) |
|
Adjusted non-interest expense (non-GAAP) |
|
$ |
9,672 |
|
|
$ |
7,658 |
|
|
$ |
7,465 |
|
|
$ |
8,616 |
|
|
$ |
8,971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$ |
10,774 |
|
|
$ |
8,654 |
|
|
$ |
8,765 |
|
|
$ |
8,781 |
|
|
$ |
9,518 |
|
|
Non-interest income |
|
|
4,358 |
|
|
|
3,672 |
|
|
|
3,501 |
|
|
|
2,720 |
|
|
|
3,742 |
|
|
Less: net gain on sales of securities |
|
|
— |
|
|
|
(101 |
) |
|
|
(570 |
) |
|
|
— |
|
|
|
— |
|
|
Operating revenue |
|
$ |
15,132 |
|
|
$ |
12,225 |
|
|
$ |
11,696 |
|
|
$ |
11,501 |
|
|
$ |
13,260 |
|
|
Efficiency ratio |
|
|
63.92 |
% |
|
|
62.64 |
% |
|
|
63.83 |
% |
|
|
74.92 |
% |
|
|
67.65 |
% |
|
|
|
For the Three Months Ended |
|
|
For the Year Ended |
|
||||||||||
|
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
|
December 31, 2020 |
|
|
December 31, 2019 |
|
||||
|
|
|
(dollars in thousands, except per share data) |
|
|||||||||||||
|
Adjusted diluted earnings per share(3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
4,518 |
|
|
$ |
3,304 |
|
|
$ |
5,478 |
|
|
$ |
16,452 |
|
|
Less: preferred stock dividends |
|
|
(80 |
) |
|
|
(117 |
) |
|
|
(367 |
) |
|
|
(472 |
) |
|
Plus: goodwill impairment |
|
|
— |
|
|
|
— |
|
|
|
5,038 |
|
|
|
— |
|
|
Adjusted income available to common shareholders for basic earnings per common share |
|
$ |
4,438 |
|
|
$ |
3,187 |
|
|
$ |
10,149 |
|
|
$ |
15,980 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding |
|
|
6,316,194 |
|
|
|
6,761,495 |
|
|
|
6,477,173 |
|
|
|
6,747,581 |
|
|
Effect of dilutive options |
|
|
28,025 |
|
|
|
44,630 |
|
|
|
28,025 |
|
|
|
21,344 |
|
|
Weighted average number of common shares outstanding used to calculate diluted earnings per common share |
|
|
6,344,219 |
|
|
|
6,806,125 |
|
|
|
6,505,198 |
|
|
|
6,768,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share |
|
$ |
0.70 |
|
|
$ |
0.47 |
|
|
$ |
1.56 |
|
|
$ |
2.36 |
|
|
|
(1) |
Management uses the return on average common shareholders’ equity 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. |
|
|
(3) |
In our judgment, the adjustment made to diluted earnings per share allows investors to better assess our income related to core operations by removing the volatility associated with the goodwill impairment, which was a one-time, non-cash expense. |
Non-GAAP Financial Measures (continued):
|
|
|
December 31, 2020 |
|
|
September 30, 2020 |
|
|
June 30, 2020 |
|
|
March 31, 2020 |
|
|
December 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 |
|
$ |
163,776 |
|
|
$ |
161,910 |
|
|
$ |
160,525 |
|
|
$ |
157,046 |
|
|
$ |
164,029 |
|
|
Less: Goodwill |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,038 |
|
|
Less: Core deposit intangible, net of amortization |
|
|
54 |
|
|
|
86 |
|
|
|
125 |
|
|
|
171 |
|
|
|
225 |
|
|
Tangible common equity (non-GAAP) |
|
$ |
163,722 |
|
|
$ |
161,824 |
|
|
$ |
160,400 |
|
|
$ |
156,875 |
|
|
$ |
158,766 |
|
|
Common shares outstanding |
|
|
6,197,965 |
|
|
|
6,294,675 |
|
|
|
6,375,150 |
|
|
|
6,496,790 |
|
|
|
6,734,132 |
|
|
Tangible book value per share |
|
$ |
26.42 |
|
|
$ |
25.71 |
|
|
$ |
25.16 |
|
|
$ |
24.15 |
|
|
$ |
23.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
|
$ |
1,472,358 |
|
|
$ |
1,492,055 |
|
|
$ |
1,513,917 |
|
|
$ |
1,354,974 |
|
|
$ |
1,378,779 |
|
|
Less: Goodwill |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,038 |
|
|
Less: Core deposit intangible, net of amortization |
|
|
54 |
|
|
|
86 |
|
|
|
125 |
|
|
|
171 |
|
|
|
225 |
|
|
Tangible assets (non-GAAP) |
|
$ |
1,472,304 |
|
|
$ |
1,491,969 |
|
|
$ |
1,513,792 |
|
|
$ |
1,354,803 |
|
|
$ |
1,373,516 |
|
|
Tangible common equity to tangible assets |
|
|
11.12 |
% |
|
|
10.85 |
% |
|
|
10.60 |
% |
|
|
11.58 |
% |
|
|
11.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adverse classified asset ratio(2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Substandard loans |
|
$ |
87,370 |
|
|
$ |
88,370 |
|
|
$ |
88,680 |
|
|
$ |
71,694 |
|
|
$ |
85,992 |
|
|
Other real estate owned |
|
|
1,077 |
|
|
|
3,064 |
|
|
|
2,629 |
|
|
|
3,247 |
|
|
|
5,521 |
|
|
Substandard unused commitments |
|
|
4,049 |
|
|
|
5,124 |
|
|
|
3,230 |
|
|
|
2,840 |
|
|
|
2,849 |
|
|
Less: Substandard government guarantees |
|
|
(8,960 |
) |
|
|
(7,002 |
) |
|
|
(6,336 |
) |
|
|
(7,699 |
) |
|
|
(7,892 |
) |
|
Total adverse classified assets (non-GAAP) |
|
$ |
83,536 |
|
|
$ |
89,556 |
|
|
$ |
88,203 |
|
|
$ |
70,082 |
|
|
$ |
86,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity (Bank) |
|
$ |
205,743 |
|
|
$ |
200,011 |
|
|
$ |
201,507 |
|
|
$ |
204,089 |
|
|
$ |
204,240 |
|
|
Accumulated other comprehensive loss (gain) on available for sale securities |
|
|
(8,686 |
) |
|
|
(8,640 |
) |
|
|
(8,734 |
) |
|
|
(5,012 |
) |
|
|
(2,505 |
) |
|
Allowance for loan losses |
|
|
14,808 |
|
|
|
18,649 |
|
|
|
18,569 |
|
|
|
17,547 |
|
|
|
15,267 |
|
|
Adjusted total equity (non-GAAP) |
|
$ |
211,865 |
|
|
$ |
210,020 |
|
|
$ |
211,342 |
|
|
$ |
216,624 |
|
|
$ |
217,002 |
|
|
Adverse classified asset ratio |
|
|
39.43 |
% |
|
|
42.64 |
% |
|
|
41.73 |
% |
|
|
32.35 |
% |
|
|
39.85 |
% |
|
|
(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. |