County Bancorp, Inc. (Form: 8-K, Received: 04/22/2021 16:02:38)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 22, 2021

COUNTY BANCORP, INC.

(Exact name of Registrant as Specified in Its Charter)

Wisconsin	001-36808	39-1850431
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

2400 South 44^th Street, Manitowoc, WI		54221
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (920) 686-9998

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common stock, $0.01 par value

ICBK

Nasdaq Global Market

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On April 22, 2021, County Bancorp, Inc. issued a press release setting forth certain information concerning its results of operations for the quarter ended March 31, 202. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to liability under that Section and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act.

Item 9.01 Financial Statements and Exhibits.

Exhibit Number		Description
99.1		Press release dated April 22, 2021
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	COUNTY BANCORP, INC.

Date: April 22, 2021	By:	/s/ Mark A. Miller
		Mark A. Miller
		Secretary

Exhibit 99.1

FOR IMMEDIATE RELEASE

COUNTY BANCORP, INC. ANNOUNCES FIRST QUARTER EARNINGS

Consistent improvement in credit trends and solid loan sales led to strong first quarter in 2021

Highlights

•

Net income of $3.9 million for the first quarter of 2021 or $0.62 per diluted share

•

Cost of funds decreased by 19 basis points sequentially to 1.23%, a decline of 79 basis points year-over-year

•

Loans sold with servicing retained increased $29.3 million since December 31, 2020 and $94.3 million since March 31, 2020

•

$32.6 million of second round of PPP loans were closed during the quarter of 2021 which generated $1.5 million in deferred fee income

•

Watch and worse rated credit improved by $25.5 million during the first quarter of 2021

Manitowoc, Wisconsin, April 22, 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 first quarter of 2021. Net income was $3.9 million, or $0.62 per diluted share, for the first quarter of 2021, compared to net loss of $5.2 million, or $0.78 diluted loss per share, for the first quarter of 2020. The net loss for the first quarter of 2020 included a $5.0 million goodwill impairment charge, or $0.77 loss per diluted share.

Tim Schneider, President of County Bancorp, Inc., noted, “I’m highly encouraged by our strong start to the year, and based on positive movements in credit migration and overall improvements in watch and worse rated credits, we continue to expect this to be a strong fiscal year for County Bancorp. We expect to see continued improvement in our overall credit metrics as the dairy market continues to rebound and we conduct our annual credit review of our dairy loan portfolio in the second quarter of 2021. Additionally, shortly after quarter-end, we received a settlement on a nonperforming hotel loan, resulting in a loan loss recovery for that credit in the second quarter of 2021.

Schneider continued, “We also demonstrated our faith in Country Bancorp's long-term value by extending our share repurchase program and purchasing more than 100,000 shares during the first quarter. I am confident that we have the right strategy to maintain our momentum and deliver consistent long-term growth. We look forward to partnering and growing with our commercial, agricultural, and consumer customers in 2021 and beyond.”

Loans and Securities

•

Total loans increased sequentially by $15.4 million, or 1.5%, to $1.0 billion during the first quarter of 2021. The increase in total loans was primarily due to $32.6 million of second round Paycheck Protection Program (“PPP”) loans originated during the quarter, which was partially offset by the forgiveness of $24.1 million of first round PPP loans by the Small Business Administration (“SBA”). The following table sets forth the total PPP loans at the dates indicated:

	March 31, 2021							December 31, 2020
	# of Loans		Balance			Deferred Fee Income		# of Loans		Balance			Deferred Fee Income
	(dollars in thousands)
PPP 1oans - Round 1		127	$	13,674		$	301		456	$	37,790		$	1,191
PPP loans - Round 2		461		32,595			1,479		—		—			—
Total PPP loans		588	$	46,269		$	1,780		456	$	37,790		$	1,191
% of Total loans				4.57	%						3.79	%

•

As of March 31, 2021, there were five customer relationships with loans in payment deferral associated with COVID-19 customer support programs totaling $6.1 million, or 0.6% of total loans, which is a decrease of $16.8 million, or 63.5%, since December 31, 2020.

•

Loan participations the Company continued to service were $841.9 million as of March 31, 2021, an increase of $29.3 million, or 3.6%, compared to December 31, 2020, and an increase of $94.3 million, or 12.6%, compared to March 31, 2020.

•

During the first quarter of 2021, investments increased by $32.4 million, or 9.2%, and increased $139.1 million, or 56.5%, since March 31, 2020. There were no security sales during the first quarter of 2021.

Deposits

•

Total deposits as of March 31, 2021 were $1.1 billion, an increase of $57.7 million, or 5.5%, from December 31, 2020, and an increase of $78.6 million, or 7.7% since March 31, 2020.

•

Client deposits (demand deposits, NOW accounts, savings accounts, money market accounts, and certificates of deposit) decreased slightly by $2.8 million, or 0.3%, from December 31, 2020 to $913.2 million, which was expected due to seasonal attrition. Year-over-year, client deposits increased $121.5 million, or 15.3%, since March 31, 2020.

•

The Company increased its brokered deposits and national certificate of deposits by $60.5 million, or 48.5%, during the first quarter of 2021 in order to facilitate investment purchases. Despite the additional brokered deposits in the first quarter, wholesale funding decreased $49.9 million, or 18.8%, since March 31, 2020.

Shareholders’ Equity

•

During the first quarter of 2021, the Company repurchased 109,862 shares of its common stock, totaling $2.5 million, at a weighted average price of $22.87 per share.

•

Book value per share decreased to $25.99 per share on March 31, 2021 from $26.42 on December 31, 2020, due primarily to a $6.4 million unrealized loss on our securities portfolio in the first quarter of 2021.

Net Interest Income and Margin

•

Net interest margin for the quarter ended March 31, 2021 was 2.95%, which declined 11 basis points compared to the sequential quarter and increased 21 basis points year-over-year. The following table shows the accretive effect the SBA PPP loans had on net interest margin for the periods indicated.

	For the Three Months Ended
	March 31, 2021			December 31, 2020
Net interest margin excluding PPP loans		2.74	%		2.49	%
Accretion related to PPP loans:
Yield on PPP loans		(0.06	)%		(0.13	)%
Yield on PPP loan SBA fees		0.29	%		0.81	%
Interest expense on PPP Liquidity Facility programs		(0.02	)%		(0.11	)%
Total accretion related to PPP loans		0.21	%		0.57	%
Total net interest margin		2.95	%		3.06	%

•

Net interest margin was positively impacted by approximately 15 basis points during the first quarter of 2021, due to the recovery of $0.5 million in interest income related to a nonaccrual loan participation.

•

Loan interest income (including fees) decreased $1.2 million sequentially primarily due to fewer PPP loans forgiven by the SBA in the first quarter of 2021 compared to the fourth quarter of 2020, which resulted in fewer origination fees being recognized as interest income. During the first quarter of 2021, $24.1 million of PPP loans were forgiven compared to $60.6 million during the fourth quarter of 2020. Year-over-year, loan interest income decreased $1.1 million primarily due to lower yields on the previously mentioned PPP loans and decrease the in federal funds target rates.

•

Total rates paid on interest-bearing deposits decreased by 22 basis points to 0.91% for the three months ended March 31, 2021, compared to the three months ended December 31, 2020, and decreased 92 basis points compared to the three months ended March 31, 2020. The decrease was primarily due to the Company’s renewed focus on gathering lower-cost transactional deposits versus higher cost time deposits and the market-driven drop in the federal funds rates.

The table below presents the effects of changing rates and volumes on net interest income for the periods indicated.

	Three Months Ended March 31, 2021 v. Three Months Ended December 31, 2020									Three Months Ended March 31, 2021 v. Three Months Ended March 31, 2020
	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	$	246		$	(37	)	$	209		$	1,003		$	(105	)	$	898
Loans (excluding PPP)		5			271			276			(752	)		(1,351	)		(2,103	)
PPP loans - round 1		(1,610	)		37			(1,573	)		(678	)		1,639			961
PPP loans - round 2		1,213			(1,130	)		83			1,213			(1,130	)		83
Total loans		(392	)		(822	)		(1,214	)		(217	)		(842	)		(1,059	)
Federal funds sold and interest-bearing deposits with banks		(4	)		(1	)		(5	)		(92	)		(128	)		(220	)
Total interest income		(150	)		(860	)		(1,010	)		694			(1,075	)		(381	)
Interest Expense:
Savings, NOW, money market and interest checking	$	(16	)	$	13		$	(3	)	$	750		$	(1,144	)	$	(394	)
Time deposits		(38	)		(371	)		(409	)		(854	)		(1,030	)		(1,884	)
Other borrowings		(24	)		(5	)		(29	)		38			(1	)		37
FHLB advances		(15	)		3			(12	)		68			(27	)		41
Junior subordinated debentures		—			(1	)		(1	)		355			45			400
Total interest expense	$	(93	)	$	(361	)	$	(454	)	$	357		$	(2,157	)	$	(1,800	)
Net interest income	$	(57	)	$	(499	)	$	(556	)	$	337		$	1,082		$	1,419

The following table sets forth average balances, average yields and rates, and income and expenses for the periods indicated.

	For the Three Months Ended
	March 31, 2021								December 31, 2020								March 31, 2020
	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	$	372,235		$	2,187		2.38	%	$	322,706		$	1,978		2.44	%	$	196,353		$	1,289		2.63	%
Loans excluding PPP loans ⁽²⁾		969,429			10,479		4.38	%		968,575			10,203		4.19	%		1,028,637			12,582		4.89	%
PPP loans - Round 1⁽²⁾		27,252			961		14.30	%		71,505			2,534		14.10	%		—			—		—
PPP loans - Round 2 ⁽²⁾		16,857			83		2.01	%		—			—		—			—			—		—
Total loans⁽²⁾		1,013,538			11,523		4.61	%		1,040,080			12,737		4.87	%		1,028,637			12,582		4.89	%
Interest bearing deposits due from other banks		19,949			5		0.10	%		37,385			10		0.11	%		60,825			225		1.48	%
Total interest-earning assets	$	1,405,722		$	13,715		3.96	%	$	1,400,171		$	14,725		4.18	%	$	1,285,815		$	14,096		4.39	%
Allowance for loan losses		(14,932	)							(18,535	)							(15,330	)
Other assets		90,109								87,785								84,461
Total assets	$	1,480,899							$	1,469,421							$	1,354,946

Liabilities
Savings, NOW, money market, interest checking	$	477,159		$	380		0.32	%	$	421,969		$	383		0.36	%	$	334,740		$	774		0.92	%
Time deposits		442,626			1,690		1.55	%		450,193			2,099		1.85	%		613,753			3,574		2.33	%
Total interest-bearing deposits	$	919,785		$	2,070		0.91	%	$	872,162		$	2,482		1.13	%	$	948,493		$	4,348		1.83	%
Other borrowings		51,220			48		0.38	%		75,341			77		0.41	%		1,259			11		3.49	%
FHLB advances		116,311			273		0.95	%		96,191			285		1.18	%		56,708			233		1.65	%
Junior subordinated debentures		67,123			1,106		6.68	%		67,055			1,107		6.57	%		44,871			706		6.29	%
Total interest-bearing liabilities	$	1,154,439		$	3,497		1.23	%	$	1,110,749		$	3,951		1.42	%	$	1,051,331		$	5,297		2.02	%
Non-interest-bearing deposits		138,814								168,765								113,351
Other liabilities		15,190								18,758								16,877
Total liabilities	$	1,308,443							$	1,298,272							$	1,181,559

Shareholders' equity		172,456								171,149								173,387
Total liabilities and equity	$	1,480,899							$	1,469,421							$	1,354,946

Net interest income				$	10,218							$	10,774							$	8,799
Interest rate spread ⁽³⁾							2.73	%							2.76	%							2.37	%
Net interest margin ⁽⁴⁾							2.95	%							3.06	%							2.74	%
Ratio of interest-earning assets to interest-bearing liabilities		1.22								1.26								1.22

(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.

Provision for Loan Losses

•

Provision for loan losses increased by $0.7 million, or 153.2%, to $0.2 million for the three months ended March 31, 2021, compared to the three months ended December 31, 2020. The provision for the first quarter is comprised of $0.1 million related to loan grown and a $0.4 million net increase in specific impairments related to one agriculture customer, which was partially offset by a $0.3 million improvement in economic qualitative factor related to the industries we have deemed high risk due in the COVID-19 pandemic.

•

Year-over-over, provision for loan losses decreased $2.0 million, or 89.1%, compared to the three months ended March 31, 2020. The reduction was primarily the result of the $2.0 million qualitative factor for industries that were deemed to be high-risk due to the COVID-19 pandemic for the three months ended March 31, 2020, due to the economic uncertainty at that time. As of March 31, 2021, only $0.5 million of this qualitative factor remained.

Non-Interest Income

•

Total non-interest income for the three months ended March 31, 2021 decreased $0.6 million, or 14.8%, to $3.7 million from the three months ended December 31, 2020, but increased $1.0 million, or 36.5% from the three months ended March 31, 2020.

•

Loan servicing fees increased quarter-over-quarter and year-over-year primarily due a six basis point increase in weighted average servicing fees and an increase in loans serviced. The average loans serviced on March 31, 2021 increased by $22.0 million and $77.6 million compared to December 31, 2020 and March 31, 2020, respectively.

•

Loan servicing right income for the three months ended March 31, 2021 decreased $0.7 million, or 60.8% to $0.5 million from $1.2 million for the three months ended December 31, 2020, primarily due to the pay-down of 20 loans totaling $12.3 million.

•

Crop insurance commission decreased in the sequential quarter by $0.2 million, or 41.8%, due to the annual profit-sharing payment that is received from insurance companies that was received in the fourth quarter of 2020.

	For the Three Months Ended
	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	(dollars in thousands)
Non-Interest Income
Service charges	$	119		$	108		$	108		$	139		$	113
Crop insurance commission		301			517			271			229			229
Gain on sale of residential loans, net		93			219			17			4			38
Loan servicing fees		2,158			1,974			2,054			1,923			1,831
Gain on sale of service-retained loans, net		1,587			1,828			1,268			1,041			505
Loan servicing right pay-down losses		(1,119	)		(635	)		(551	)		(766	)		(216	)
Total loan servicing right income		468			1,193			717			275			289
Income on OREO		—			—			—			—			—
Gain on sale of securities		—			—			101			570			—
Referral fees		319			64			110			121			17
Other		254			283			294			240			203
Total non-interest income	$	3,712		$	4,358		$	3,672		$	3,501		$	2,720

	For the Three Months Ended
	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	(dollars in thousands)
Loan servicing rights, end of period	$	18,864		$	18,396		$	17,203		$	16,486		$	16,211
Loans serviced, end of period		841,893			812,560			797,819			762,058			747,553
Loan servicing rights as a % of loans serviced		2.24	%		2.26	%		2.16	%		2.16	%		2.17	%

Total loan servicing fees	$	2,158		$	1,974		$	2,054		$	1,923		$	1,831
Average loans serviced		827,227			805,190			779,939			754,806			749,646
Annualized loan servicing fees as a % of average loans serviced		1.04	%		0.98	%		1.05	%		1.02	%		0.98	%

Non-Interest Expense

•

Total non-interest expense for the three months ended March 31, 2021 decreased $0.7 million, or 13.1%, to $8.8 million from the three months ended December 31, 2020, and decreased $6.3 million, or 41.6% from the three months ended March 31, 2020.

•

Employee compensation and benefits expense decreased for the three months ended March 31, 2021 by $1.1 million to $5.6 million compared to the three months ended December 31, 2020. The change was primarily the result of an additional accrual of $1.6 million that took place during the fourth quarter of 2020 for incentive compensation related to 2020 financial results, which was partially offset by 2021 merit increases and payroll taxes that reset at the beginning of each year.

•

Professional fees increased during the first quarter of 2021 by $0.2 million, or 37.8%, to $0.8 million compared to the fourth quarter of 2020 due primarily to a nonrecurring technology strategy project.

	For the Three Months Ended
	March 31, 2021		December 31, 2020			September 30, 2020		June 30, 2020		March 31, 2020
	(dollars in thousands, except per share data)
Non-Interest Expense
Employee compensation and benefits	$	5,582	$	6,687		$	4,766	$	4,594	$	5,260
Occupancy		279		297			321		305		354
Information processing		661		656			641		663		670
Professional fees		802		582			555		480		401
Business development		307		136			305		333		366
OREO expenses		23		20			47		44		116
Writedown of OREO		—		148			—		—		1,360
Net loss (gain) on sale of OREO		17		(326	)		9		—		4
Depreciation and amortization		257		289			295		303		301
Goodwill impairment		—		—			—		—		5,038
Other		836		1,005			728		743		1,148
Total non-interest expense	$	8,764	$	9,494		$	7,667	$	7,465	$	15,018

Asset Quality

•

During the first quarter of 2021, watch rated loans decreased by $24.3 million, or 12.8%, and $53.6 million, or 24.4%, compared to December 31, 2020 and March 31, 2020, respectively, primarily as the result of eight dairy customers upgraded to a low satisfactory rating. This improvement in asset quality is expected to continue in the second quarter of 2021 as we complete the annual review process.

•

Special mention loans decreased $1.9 million, or 75.5%, compared to December 31, 2020 due mainly to the migration of one agricultural customer to substandard performing.

•

Substandard performing loans decreased by $1.5 million, or 3.6%, to $39.0 million at March 31, 2021 compared to December 31, 2020 due to impairment of two customer relationships; one customer filed for bankruptcy, and one customer on a workout plan was more than 90 days past due at quarter end. These two migrations to substandard impaired were offset in part by the special mention migration discussed above.

The following table presents loan balances by credit grade for the periods indicated:

	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	(dollars in thousands)
Loans by risk category:
Sound/Acceptable/Satisfactory/ Low Satisfactory	$	757,160		$	716,313		$	800,451		$	798,945		$	706,247
Watch		165,823			190,101			185,254			198,044			219,459
Special Mention		605			2,501			1,851			1,856			15,036
Substandard Performing		38,961			40,420			41,577			47,741			34,179
Substandard Impaired		49,115			46,950			46,793			40,938			37,515
Total loans	$	1,011,664		$	996,285		$	1,075,926		$	1,087,524		$	1,012,436
Adverse classified asset ratio ⁽¹⁾		39.61	%		39.43	%		42.64	%		41.73	%		32.35	%

(1)

This is a non-GAAP financial measure. A reconciliation to GAAP is included at the end of this earnings release.

Non-Performing Assets

•

Non-performing assets increased in the first quarter by $2.0 million, or 4.7%, compared to the fourth quarter of 2020 due to two agricultural customers being placed on non-accrual status. It is anticipated that during the second quarter of 2021, approximately $7.0 million of agricultural loans will be restored to accrual status as a result of the completion of the annual credit review of the dairy portfolio.

•

Non-accrual loans increased $2.3 million, or 5.6%, as of March 31, 2021 compared to December 31, 2020, due to the previously discussed customer bankruptcy.

•

Performing TDRs not on non-accrual decreased $5.1 million, or 27.4%, to $13.5 million on March 31, 2021 from December 31, 2020. The decrease is primarily due to one agriculture customer that was re-underwritten and was no longer a TDR due to improved performance and financial trends.

	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	(dollars in thousands)
Non-Performing Assets:
Nonaccrual loans	$	43,973		$	41,624		$	41,351		$	35,456		$	32,051
Other real estate owned		739			1,077			3,064			2,629			3,247
Total non-performing assets	$	44,712		$	42,701		$	44,415		$	38,085		$	35,298

Performing TDRs not on nonaccrual	$	13,495		$	18,592		$	19,036		$	21,986		$	21,853

Non-performing assets as a % of total loans		4.42	%		4.29	%		4.13	%		3.50	%		3.49	%
Non-performing assets as a % of total assets		3.00	%		2.90	%		2.98	%		2.52	%		2.61	%
Allowance for loan losses as a % of total loans		1.49	%		1.49	%		1.73	%		1.71	%		1.73	%
Net charge-offs (recoveries) quarter- to-date	$	(32	)	$	3,386		$	(1	)	$	120		$	(62	)

Conference Call

The Company will host an earnings call tomorrow, April 23, 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 April 23, 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)	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	(dollars in thousands, except per share data)
Period-End Balance Sheet:
Assets
Cash and cash equivalents	$	17,820		$	19,500		$	53,283		$	127,432		$	21,545
Securities available-for-sale, at fair value		385,240			352,854			298,476			226,971			246,148
Loans held for sale		5,789			35,976			2,593			11,847			14,388
Agricultural loans		609,482			606,881			619,617			624,340			642,066
Commercial loans		317,625			313,265			317,782			328,368			325,310
Paycheck Protection Plan loans		46,249			37,790			98,421			103,317			—
Multi-family real estate loans		33,287			33,457			35,496			30,439			42,198
Residential real estate loans		4,776			4,627			4,489			975			2,753
Installment and consumer other		245			265			121			85			109
Total loans		1,011,664			996,285			1,075,926			1,087,524			1,012,436
Allowance for loan losses		(15,082	)		(14,808	)		(18,649	)		(18,569	)		(17,547	)
Net loans		996,582			981,477			1,057,277			1,068,955			994,889
Other assets		85,897			82,551			80,426			78,712			78,004
Total Assets	$	1,491,328		$	1,472,358		$	1,492,055		$	1,513,917		$	1,354,974

Liabilities and Shareholders' Equity
Demand deposits	$	139,838		$	163,202		$	158,798		$	149,963		$	117,434
NOW accounts and interest checking		95,591			96,624			78,026			81,656			64,873
Savings		8,431			7,367			11,900			8,369			6,566
Money market accounts		390,741			344,250			325,900			307,083			237,889
Time deposits		278,591			304,580			322,992			346,482			364,930
Brokered deposits		159,034			80,456			101,808			121,503			161,882
National time deposits		26,302			44,347			50,747			57,997			66,386
Total deposits		1,098,528			1,040,826			1,050,171			1,073,053			1,019,960
Federal Reserve Discount Window advances		47,255			47,531			99,693			99,693			—
FHLB advances		100,000			129,000			84,600			93,400			109,400
Subordinated debentures		67,179			67,111			67,025			61,910			44,896
Other liabilities		12,028			16,114			20,656			17,336			15,672
Total Liabilities		1,324,990			1,300,582			1,322,145			1,345,392			1,189,928

Shareholders' equity		166,338			171,776			169,910			168,525			165,046
Total Liabilities and Shareholders' Equity	$	1,491,328		$	1,472,358		$	1,492,055		$	1,513,917		$	1,354,974

Stock Price Information:
High - Quarter-to-date	$	26.46		$	23.72		$	22.00		$	24.67		$	27.19
Low - Quarter-to-date	$	19.66		$	18.20		$	17.04		$	17.13		$	13.55
Market price - Quarter-end	$	23.97		$	22.08		$	18.80		$	20.93		$	18.50
Book value per share	$	25.99		$	26.42		$	25.72		$	25.18		$	24.17
Tangible book value per share ⁽¹⁾	$	25.98		$	26.42		$	25.71		$	25.16		$	24.15
Common shares outstanding		6,094,450			6,197,965			6,294,675			6,375,150			6,496,790

(1)

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

	For the Three Months Ended
	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	(dollars in thousands, except per share data)
Selected Income Statement Data:
Interest and Dividend Income
Loans, including fees	$	11,523		$	12,737		$	11,594		$	12,009		$	12,565
Taxable securities		1,887			1,777			1,293			1,283			1,282
Tax-exempt securities		246			201			167			162			6
Federal funds sold and other		58			10			52			111			225
Total interest and dividend income		13,714			14,725			13,106			13,565			14,078

Interest Expense
Deposits		2,069			2,482			2,914			3,721			4,347
FHLB advances and other borrowed funds		321			362			456			343			244
Subordinated debentures		1,106			1,107			1,082			736			706
Total interest expense		3,496			3,951			4,452			4,800			5,297
Net interest income		10,218			10,774			8,654			8,765			8,781
Provision for loan losses		242			(455	)		79			1,142			2,218
Net interest income after provision for loan losses		9,976			11,229			8,575			7,623			6,563

Non-Interest Income
Services charges		119			108			108			139			113
Crop insurance commission		301			517			271			229			229
Gain on sale of residential loans, net		93			219			17			4			38
Loan servicing fees		2,158			1,974			2,054			1,923			1,831
Gain on sale of service-retained loans, net		1,587			1,828			1,268			1,041			505
Loan servicing right pay-down losses		(1,119	)		(635	)		(551	)		(766	)		(216	)
Total loan servicing right income		468			1,193			717			275			289
Gain on sale of securities		—			—			101			570			—
Referral fees⁽¹⁾		319			64			110			121			17
Other		254			283			294			240			203
Total non-interest income		3,712			4,358			3,672			3,501			2,720

Non-Interest Expense
Employee compensation and benefits		5,582			6,687			4,766			4,594			5,260
Occupancy		279			297			321			305			354
Information processing		661			656			641			663			670
Professional fees		802			582			555			480			401
Business development		307			136			305			333			366
OREO expenses		23			20			47			44			116
Writedown of OREO		—			148			—			—			1,360
Net loss (gain) on sale of OREO		17			(326	)		9			—			4
Depreciation and amortization		257			289			295			303			301
Goodwill impairment		—			—			—			—			5,038
Other		836			1,005			728			743			1,148
Total non-interest expense		8,764			9,494			7,667			7,465			15,018
Income (loss) before income taxes		4,924			6,093			4,580			3,659			(5,735	)
Income tax expense (benefit)		996			1,575			1,164			926			(547	)
NET INCOME (LOSS)	$	3,928		$	4,518		$	3,416		$	2,733		$	(5,188	)

Basic earnings (loss) per share	$	0.62		$	0.70		$	0.52		$	0.40		$	(0.79	)
Diluted earnings (loss) per share	$	0.62		$	0.70		$	0.52		$	0.40		$	(0.78	)
Dividends declared per share	$	0.10		$	0.10		$	0.07		$	0.07		$	0.07

(1)

Referral fees in prior quarters reclassed to non-interest income to match current classification

	For the Three Months Ended
	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	(dollars in thousands, except share data)
Other Data:
Return on average assets ⁽¹⁾		1.06	%		1.23	%		0.91	%		0.74	%		(1.53	)%
Return on average shareholders' equity ⁽¹⁾		9.11	%		10.56	%		8.05	%		6.55	%		(11.97	)%
Return on average common shareholders' equity⁽¹⁾⁽²⁾		9.29	%		10.88	%		8.25	%		6.63	%		(12.81	)%
Efficiency ratio ⁽¹⁾⁽²⁾		62.79	%		63.92	%		62.64	%		11.13	%		74.92	%
Equity to assets ratio		11.15	%		11.67	%		11.39	%		11.13	%		12.18	%
Tangible common equity to tangible assets ⁽²⁾		10.62	%		11.12	%		10.85	%		10.60	%		11.58	%

Common Share Data:
Net income from continuing operations	$	3,928		$	4,518		$	3,416		$	2,733		$	(5,188	)
Less: Preferred stock dividends		81			80			80			99			108
Income available to common shareholders	$	3,847		$	4,438		$	3,336		$	2,634		$	(5,296	)

Weighted average number of common shares issued		7,218,358			7,206,238			7,202,000			7,198,901			7,182,945
Less: Weighted average treasury shares		1,080,089			957,573			882,153			759,294			518,740
Plus: Weighted average non-vested restricted stock units		63,991			67,529			66,492			65,291			39,785
Weighted average number of common shares outstanding		6,202,260			6,316,194			6,386,339			6,504,898			6,703,990
Effect of dilutive options		34,465			28,025			20,915			28,511			49,072
Weighted average number of common shares outstanding used to calculate diluted earnings per common share		6,236,725			6,344,219			6,407,254			6,533,409			6,753,062

(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
	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	(dollars in thousands)
Return on average common shareholders' equity reconciliation ⁽¹⁾:
Return on average shareholders' equity		9.11	%		10.56	%		8.05	%		6.55	%		(11.97	)%
Effect of excluding average preferred shareholders' equity		0.18	%		0.32	%		0.20	%		0.08	%		(0.84	)%
Return on average common shareholders' equity		9.29	%		10.88	%		8.25	%		6.63	%		(12.81	)%

Efficiency ratio ⁽²⁾:
Non-interest expense	$	8,764		$	9,494		$	7,667		$	7,465		$	15,018
Less: goodwill impairment		—			—			—			—			(5,038	)
Less: historical tax credit investment impairment		—			—			—			—			—
Less: net loss on sales and write-downs of OREO		(17	)		178			(9	)		—			(1,364	)
Adjusted non-interest expense (non-GAAP)	$	8,747		$	9,672		$	7,658		$	7,465		$	8,616

Net interest income	$	10,218		$	10,774		$	8,654		$	8,765		$	8,781
Non-interest income		3,712			4,358			3,672			3,501			2,720
Less: net gain on sales of securities		—			—			(101	)		(570	)		—
Operating revenue	$	13,930		$	15,132		$	12,225		$	11,696		$	11,501
Efficiency ratio		62.79	%		63.92	%		62.64	%		63.83	%		74.92	%

	For the Three Months Ended
	March 31, 2021			March 31, 2020
	(dollars in thousands, except per share data)
Adjusted diluted earnings per share⁽³⁾:
Net income from continuing operations	$	3,928		$	(5,188	)
Less: preferred stock dividends		(81	)		(108	)
Plus: goodwill impairment		—			5,038
Adjusted income available to common shareholders for basic earnings per common share	$	3,847		$	(258	)
Weighted average number of common shares outstanding		6,202,260			6,703,990
Effect of dilutive options		34,465			49,072
Weighted average number of common shares outstanding used to calculate diluted earnings per common share		6,236,725			6,753,062
Adjusted diluted earnings per share	$	0.62		$	(0.04	)

(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):

	March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020			March 31, 2020
	(dollars in thousands, except per share data)
Tangible book value per share and tangible common equity to tangible assets reconciliation ⁽¹⁾:
Common equity	$	158,338		$	163,776		$	161,910		$	160,525		$	157,046
Less: Core deposit intangible, net of amortization		29			54			86			125			171
Tangible common equity (non-GAAP)	$	158,309		$	163,722		$	161,824		$	160,400		$	156,875
Common shares outstanding		6,094,450			6,197,965			6,294,675			6,375,150			6,496,790
Tangible book value per share	$	25.98		$	26.42		$	25.71		$	25.16		$	24.15

Total assets	$	1,491,328		$	1,472,358		$	1,492,055		$	1,513,917		$	1,354,974
Less: Core deposit intangible, net of amortization		29			54			86			125			171
Tangible assets (non-GAAP)	$	1,491,299		$	1,472,304		$	1,491,969		$	1,513,792		$	1,354,803
Tangible common equity to tangible assets		10.62	%		11.12	%		10.85	%		10.60	%		11.58	%

Adverse classified asset ratio ⁽²⁾:
Substandard loans	$	88,076		$	87,370		$	88,370		$	88,680		$	71,694
Other real estate owned		739			1,077			3,064			2,629			3,247
Substandard unused commitments		5,091			4,049			5,124			3,230			2,840
Less: Substandard government guarantees		(8,485	)		(8,960	)		(7,002	)		(6,336	)		(7,699	)
Total adverse classified assets (non-GAAP)	$	85,421		$	83,536		$	89,556		$	88,203		$	70,082

Total equity (Bank)	$	202,200		$	205,743		$	200,011		$	201,507		$	204,089
Accumulated other comprehensive gain on available for sale securities		(1,652	)		(8,686	)		(8,640	)		(8,734	)		(5,012	)
Allowance for loan losses		15,082			14,808			18,649			18,569			17,547
Adjusted total equity (non-GAAP)	$	215,630		$	211,865		$	210,020		$	211,342		$	216,624
Adverse classified asset ratio		39.61	%		39.43	%		42.64	%		41.73	%		32.35	%

(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.