County Bancorp, Inc. (Form: 8-K, Received: 06/21/2021 16:02:50)

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): June 21, 2021

COUNTY BANCORP, INC.

(Exact name of Registrant as Specified in 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 8.01 Other Events.

On June 21, 2021, County Bancorp, Inc. (the “Company”) issued a press release announcing material credit quality improvement from the first quarter of 2021. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

Exhibit Number		Description
99.1		Press release dated June 21, 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: June 21, 2021	By:	/s/ Mark A. Miller
		Mark A. Miller
		Secretary

Exhibit 99.1

FOR IMMEDIATE RELEASE

COUNTY BANCORP ANNOUNCES IMPROVEMENT IN CREDIT QUALITY

Improved milk prices and risk management strategies strengthened the Company’s credit portfolio, resulting in a meaningful reduction in allowances for loan and lease losses

Manitowoc, WI, June 21, 2021 – County Bancorp, Inc. (Nasdaq: ICBK; the “Company”), the parent company for Investors Community Bank, announced today that as of May 31, 2021, the Company's non-performing assets decreased $13.3 million or 29.7% compared to March 31, 2021. In addition, the Company’s adverse classified assets (a non-GAAP measure; see below for a reconciliation to GAAP metrics) as of May 31, 2021, decreased $29.8 million or 34.9% compared to March 31, 2021.

“A sustained recovery in the dairy market is benefiting our clients' cash flows, and in turn, reducing the credit risk in our loan portfolio," said Tim Schneider, President of County Bancorp. He continued, "Loans rated watch and worse have decreased $70.9 million between March 31, 2021 and May 31, 2021, including a $18.4 million decrease in substandard impaired loans, and we expect these trends to continue. Assuming credit quality trends continue as expected, we expect to see a benefit to our second quarter earnings due to improvements in our allowance for loan and lease losses assumptions because of the decrease in watch and worse rated loans and the release of specific reserves related to the decrease in substandard impaired loans. We look forward to growing with our commercial, agricultural, and consumer customers.”

The following tables show certain of the Company’s unaudited, internal credit quality metrics as of March 31, 2021 and May 31, 2021:

	May 31, 2021		March 31, 2021
	(dollars in thousands)
Loans by risk category:
Sound/Acceptable/Satisfactory/ Low Satisfactory	$	831,164	$	757,160
Watch		123,410		165,823
Special Mention		575		605
Substandard Performing		28,865		38,961
Substandard Impaired		30,744		49,115
Total loans	$	1,014,758	$	1,011,664

Investors.ICBK.com

	May 31, 2021			March 31, 2021
	(dollars in thousands)
Non-Performing Assets:
Nonaccrual loans	$	30,873		$	43,973
Other real estate owned		554			739
Total non-performing assets	$	31,427		$	44,712

Performing TDRs not on nonaccrual	$	7,674		$	13,495

Non-performing assets as a % of total loans		3.10	%		4.42	%
Non-performing assets as a % of total assets		2.08	%		3.00	%
Allowance for loan losses as a % of total loans		1.52	%		1.49	%
Net charge-offs (recoveries) quarter-to-date	$	(608	)	$	(32	)

	May 31, 2021			March 31, 2021
	(dollars in thousands)
Adverse classified asset ratio ⁽¹⁾:
Substandard loans	$	59,609		$	88,076
Other real estate owned		554			739
Substandard unused commitments		3,612			5,091
Less: Substandard government guarantees		(8,159	)		(8,485	)
Total adverse classified assets (non-GAAP)	$	55,616		$	85,421

Total equity (Bank)	$	204,321		$	202,200
Accumulated other comprehensive gain on available for sale securities		(4,580	)		(1,652	)
Allowance for loan losses		15,440			15,082
Adjusted total equity (non-GAAP)	$	215,181		$	215,630
Adverse classified asset ratio		25.85	%		39.61	%

(1)

Adverse classified asset ratio is a non-GAAP metric. 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

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, Appleton, Green Bay, and Stevens Point and our loan production offices in Darlington, Eau Claire, Fond du Lac and Sheboygan. Visit our Investor Relations site for details: Investors.ICBK.com

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.

Investors.ICBK.com

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Investor Relations Contact

Glen L. Stiteley

EVP - CFO, Investors Community Bank

Phone: (920) 686-5658

Email: gstiteley@icbk.com

Investors.ICBK.com