Exhibit 99.1
FOR IMMEDIATE RELEASE
COUNTY BANCORP, INC. ANNOUNCES RECORD NET INCOME
OF $4.1 MILLION FOR THE FIRST QUARTER OF 2018
Highlights
| • | Net income of $4.1 million for the first quarter of 2018 |
| • | Diluted earnings per share of $0.58 for the first quarter of 2018 |
| • | Book value per share of $20.17 as of March 31, 2018, an increase of $1.11, or 5.8%, since |
March 31, 2017
| • | Tangible book value per share of $19.29 as of March 31, 2018, an increase of $1.19, or 6.6%, since March 31, 2017 |
| • | Loan growth of $15.6 million during the first quarter of 2018, an increase of 1.4% |
| • | Deposit growth of $62.3 million during the first quarter of 2018, an increase of 5.6% |
Manitowoc, Wisconsin, April 19, 2018 – County Bancorp, Inc. (Nasdaq: ICBK), the holding company of Investors Community Bank, an agricultural and commercial bank headquartered in Manitowoc, Wisconsin, reported net income of $4.1 million, or $0.58 diluted earnings per share, for the first quarter of 2018, compared to net income of $2.6 million, or $0.38 diluted earnings per share, for the first quarter of 2017. This represents a return on average assets of 1.15% for the quarter ended March 31, 2018, compared to 0.85% for the quarter ended March 31, 2017. Net income for the first quarter of 2018 was positively impacted by loan growth, as well as a recovery on a previously charged off commercial loan which resulted in a reduction in the provision for loan losses. The reduction in the federal corporate income tax rate also had a positive impact on net income.
“Historically the first quarter has been a more modest one for loan growth, and 2018 was no different. That being said, our pipelines for both commercial and agriculture loans remain strong,” stated Timothy J. Schneider, President of County Bancorp, Inc. and CEO of Investors Community Bank. “After seeing solid core deposit growth in the fourth quarter of 2017, the first quarter saw a slight retraction. The core deposit gathering strategies we put into place in 2017 and continue in 2018 are still expected to show improvement for the balance of the year.”
He added, “The Company earned solid net income and earnings per share in the first quarter of 2018, much of which was due to the large recovery on a commercial loan discussed further below. This recovery resulted in a lower loan loss provision for the quarter, which offset some of the additional migration of loans into nonperforming assets. The dairy sector in general continues to feel the stress of three years of lower milk prices. We continue to work through this dairy cycle with our clients and have recently seen some improvement in the Chicago Mercantile Exchange milk price futures for the balance of 2018 and into 2019.”
Loans and Total Assets
Total assets at March 31, 2018 were $1.5 billion, an increase of $63.2 million, or 4.5%, and $208.8 million, or 16.7%, over total assets as of December 31, 2017 and March 31, 2017, respectively. Total loans were $1.2 billion at March 31, 2018, which represents a $15.6 million, or 1.4%, and $115.5 million, or 11.0%, increase over total loans at December 31, 2017 and March 31, 2017, respectively. For the first quarter 2018, we continued to see solid loan demand in all of our market areas.
In addition to the on-balance sheet loan growth, participated loans that we continue to service totaled $611.4 million at March 31, 2018, which is an increase of $10.7 million, or 1.8%, and $29.7 million, or 5.1%, over December 31, 2017 and March 31, 2017, respectively.
Deposits
Total deposits at March 31, 2018 were $1.2 billion, an increase of $62.3 million, or 5.6%, and $191.1 million, or 19.5%, over total deposits as of December 31, 2017 and March 31, 2017, respectively. Core deposit (demand deposits, money markets, and certificates of deposit) generation remained challenging, showing a decrease of $11.9 million during the first quarter of 2018 due to normal cyclical trends related to agricultural and municipal deposits. We continue to supplement our deposit needs with wholesale deposits, which include brokered deposits and national certificates of deposit. Brokered deposits and national certificates of deposit at March 31, 2018 were $502.8 million, which was an increase of $77.8 million, or 18.3%, from December 31, 2017, and an increase of $139.6 million, or 38.4%, from March 31, 2017.
Net Interest Income and Margin
Net interest income improved slightly to $10.3 million for three months ended March 31, 2018 compared to $10.2 million for the three months ended December 31, 2017. For the three months ended March 31, 2018, net interest income increased to $10.3 million from $9.2 million for the three months ended March 31, 2017, primarily due to loan growth.
Net interest margin decreased to 3.01% for the three months ended March 31, 2018, compared to 3.06% for the three months ended December 31, 2017. For the three months ended March 31, 2018, the net interest margin of 3.01% decreased from 3.07% for the three months ended March 31, 2017. The decline reflected the impact of costs related to deposits and borrowings increasing more than the yields on loans and investments. Yields on interest bearing assets increased by 0.25% between the first quarter of 2017 and the first quarter of 2018 while the costs of interest bearing liabilities increased by 0.35%.
During the first quarter of 2018, the Company executed an interest rate swap on two sets of its trust preferred floating rate securities. The swaps converted the interest rate paid on one set of trust preferred securities from a floating rate, reset quarterly, of three month LIBOR plus 1.53% (currently 3.65%) to a fixed rate of 4.354% and for the other set, from a floating rate of three month LIBOR plus 1.69% (currently 3.81%) to a fixed rate of 4.514%. Both swaps qualify for cash flow hedge accounting under ASC 815-20-25-3, so any market value adjustments will be marked to market through accumulated other comprehensive income, assuming the hedge remains highly effective through the life of the swaps. The swaps will commence June 15, 2018 and will mature on June 15, 2028.
Non-Interest Income and Expense
Non-interest income for the three months ended March 31, 2018 was unchanged at $2.0 million compared to the three months ended December 31, 2017.
Non-interest income for the quarter ended March 31, 2018 increased $0.3 million to $2.0 million compared to $1.7 million for the quarter ended March 31, 2017. The increase is directly related to increases in loan servicing rights which was the result of higher volumes of loans being serviced.
Non-interest expense for the three months ended March 31, 2018 decreased by $0.4 million to $6.8 million compared to the three months ended December 31, 2017. While employee compensation and benefits increased by $0.5 million for the three months ended March 31, 2018 compared to the three months ended December 31, 2017, non-interest expense for the three months ended December 31, 2017 was higher by $0.4 million compared to the three months ended March 31, 2018 primarily due to business development expenses in the fourth quarter of 2017 which were accelerated from future periods to maximize the tax advantage of the higher corporate tax rate in 2017 and the write-down of an OREO property of $0.8 million in the fourth quarter of 2017.
Non-interest expense for the quarter ended March 31, 2018 increased $0.9 million to $6.8 million from $5.9 million for the quarter ended March 31, 2017. The increase is primarily related to the recognition of a gain on the sale of an OREO property of $0.4 million included for the quarter ended March 31, 2017, which helped
offset expenses during the same period. Small increases quarter-over-quarter were seen in employee compensation and benefits and information processing expenses.
Income Taxes
Income tax expense for the three months ended March 31, 2018 was $1.4 million compared to $2.9 million for the three months ended December 31, 2017. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was signed into law. Among other changes was a permanent reduction in the federal corporate income tax rate from 35% to 21% effective January 1, 2018. As a result of the reduction in the corporate income tax rate, the Company decreased the value of its net deferred tax asset by $0.9 million, which was included in income tax expense for the three months ended December 31, 2017. The additional variance in income tax expense was caused by the reduction in the federal corporate income tax rate.
Income tax expense for the quarter ended March 31, 2018 decreased to $1.4 million compared to $1.6 million for the quarter ended March 31, 2017 due the reduction in the federal corporate income tax rate.
Asset Quality
Non-performing assets as a percent of total assets increased to 1.83% at March 31, 2018, from 1.15% at December 31, 2017. At March 31, 2018, non-performing assets were $26.7 million, up from $16.1 million at December 31, 2017. Non-performing loans increased $6.1 million from one relationship being put on non-accrual status and three properties were transferred from non-accrual status into OREO for an increase of $4.4 million in OREO during the quarter ended March 31, 2018.
For the three months ended March 31, 2018, the Company recorded net recoveries of $1.3 million compared to net charge offs of $0.4 million for the three months ended December 31, 2017. A recovery of $1.2 million was recorded during the three months ended March 31, 2018 on a multi-family real estate loan, acquired in 2016 as part of the Fox River Valley acquisition.
A provision for loan losses of $0.1 million was recorded for the three months ended March 31, 2018, as a result of a $1.4 impairment on an agricultural relationship that partially offset the net recovery mentioned above. For the three months ended December 31, 2017 and March 31, 2017, the provision for loan losses was $12 thousand and $0.8 million, respectively.
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.
Forward-Looking Statements
This press release includes "forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking 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 County Bancorp, Inc.’s most recent annual report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Any forward-looking statements presented herein are made only as of the date of this press release, and we do 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, 2018 | | | December 31, 2017 | | | September 30, 2017 | | | June 30, 2017 | | | March 31, 2017 | |
| | (dollars in thousands, except per share data) | |
Period-End Balance Sheet: | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 90,676 | | | $ | 66,771 | | | $ | 71,795 | | | $ | 35,939 | | | $ | 31,185 | |
Securities available for sale, at fair value | | | 141,360 | | | | 126,030 | | | | 107,242 | | | | 115,148 | | | | 115,431 | |
Loans held for sale | | | 6,407 | | | | 6,575 | | | | 2,054 | | | | 8,036 | | | | 2,841 | |
Agricultural loans | | | 698,106 | | | | 686,430 | | | | 675,856 | | | | 643,978 | | | | 629,049 | |
Commercial loans | | | 406,096 | | | | 407,036 | | | | 397,989 | | | | 380,606 | | | | 372,052 | |
Multi-family real estate loans | | | 54,514 | | | | 49,133 | | | | 45,943 | | | | 43,879 | | | | 40,471 | |
Residential real estate loans | | | 5,512 | | | | 6,005 | | | | 6,584 | | | | 7,060 | | | | 7,369 | |
Installment and consumer other | | | 297 | | | | 347 | | | | 229 | | | | 145 | | | | 68 | |
Total loans | | | 1,164,525 | | | | 1,148,951 | | | | 1,126,601 | | | | 1,075,668 | | | | 1,049,009 | |
Allowance for loan losses | | | (14,612 | ) | | | (13,247 | ) | | | (13,625 | ) | | | (13,503 | ) | | | (13,428 | ) |
Net loans | | | 1,149,913 | | | | 1,135,704 | | | | 1,112,976 | | | | 1,062,165 | | | | 1,035,581 | |
Other assets | | | 71,901 | | | | 61,965 | | | | 65,258 | | | | 65,346 | | | | 66,376 | |
Total Assets | | $ | 1,460,257 | | | $ | 1,397,045 | | | $ | 1,359,325 | | | $ | 1,286,634 | | | $ | 1,251,414 | |
| | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | | | | | |
Time deposits | | $ | 497,296 | | | $ | 444,395 | | | $ | 443,882 | | | $ | 437,710 | | | $ | 424,981 | |
Brokered deposits | | | 319,692 | | | | 282,616 | | | | 281,205 | | | | 235,785 | | | | 211,661 | |
Money market accounts | | | 199,834 | | | | 199,118 | | | | 169,612 | | | | 164,061 | | | | 196,828 | |
Demand deposits | | | 101,167 | | | | 125,584 | | | | 118,815 | | | | 102,569 | | | | 96,407 | |
NOW accounts and interest checking | | | 48,212 | | | | 51,613 | | | | 46,178 | | | | 47,811 | | | | 44,859 | |
Savings | | | 6,189 | | | | 6,751 | | | | 6,402 | | | | 5,727 | | | | 6,581 | |
Total deposits | | | 1,172,390 | | | | 1,110,077 | | | | 1,066,094 | | | | 993,663 | | | | 981,317 | |
FHLB Advances | | | 120,500 | | | | 121,500 | | | | 128,300 | | | | 133,300 | | | | 110,300 | |
Other liabilities | | | 24,553 | | | | 24,482 | | | | 25,202 | | | | 23,417 | | | | 25,723 | |
Total Liabilities | | | 1,317,443 | | | | 1,256,059 | | | | 1,219,596 | | | | 1,150,380 | | | | 1,117,340 | |
| | | | | | | | | | | | | | | | | | | | |
Shareholders' equity | | | 142,814 | | | | 140,986 | | | | 139,729 | | | | 136,254 | | | | 134,074 | |
Total Liabilities and Shareholders' Equity | | $ | 1,460,257 | | | $ | 1,397,045 | | | $ | 1,359,325 | | | $ | 1,286,634 | | | $ | 1,251,414 | |
| | | | | | | | | | | | | | | | | | | | |
Stock Price Information: | | | | | | | | | | | | | | | | | | | | |
High - Year-to-date | | $ | 33.76 | | | $ | 35.89 | | | $ | 35.89 | | | $ | 35.89 | | | $ | 35.89 | |
Low - Year-to-date | | $ | 26.61 | | | $ | 22.73 | | | $ | 22.73 | | | $ | 22.73 | | | $ | 24.70 | |
Market price - Quarter-end | | $ | 29.21 | | | $ | 29.76 | | | $ | 30.05 | | | $ | 24.00 | | | $ | 29.06 | |
Book value per share | | $ | 20.17 | | | $ | 19.93 | | | $ | 19.79 | | | $ | 19.31 | | | $ | 19.06 | |
Tangible book value per share (1) | | $ | 19.29 | | | $ | 19.04 | | | $ | 18.87 | | | $ | 18.38 | | | $ | 18.10 | |
Average diluted shares of common stock quarter-to-date | | | 6,768,965 | �� | | | 6,768,939 | | | | 6,757,648 | | | | 6,701,578 | | | | 6,727,502 | |
Common shares outstanding | | | 6,684,923 | | | | 6,673,381 | | | | 6,657,601 | | | | 6,641,159 | | | | 6,615,232 | |
| | | | | | | | | | | | | | | | | | | | |
Non-Performing Assets: | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans | | $ | 17,746 | | | $ | 11,559 | | | $ | 12,862 | | | $ | 12,412 | | | $ | 15,263 | |
Other real estate owned (2) | | | 8,982 | | | | 4,565 | | | | 6,576 | | | | 6,520 | | | | 6,597 | |
Total non-performing assets | | $ | 26,728 | | | $ | 16,124 | | | $ | 19,438 | | | $ | 18,932 | | | $ | 21,860 | |
| | | | | | | | | | | | | | | | | | | | |
Restructured loans not on nonaccrual | | $ | 10,488 | | | $ | 9,019 | | | $ | 8,087 | | | $ | 4,523 | | | $ | 4,446 | |
| | | | | | | | | | | | | | | | | | | | |
Non-performing assets as a % of total assets | | | 1.83 | % | | | 1.15 | % | | | 1.43 | % | | | 1.47 | % | | | 1.75 | % |
Allowance for loan losses as a % of nonaccrual loans | | | 82.34 | % | | | 114.60 | % | | | 105.93 | % | | | 108.79 | % | | | 87.98 | % |
Allowance for loan losses as a % of total loans | | | 1.25 | % | | | 1.15 | % | | | 1.21 | % | | | 1.26 | % | | | 1.28 | % |
Net charge-offs (recoveries) quarter-to-date | | $ | (1,268 | ) | | $ | 390 | | | $ | (89 | ) | | $ | 1,449 | | | $ | (22 | ) |
Provision for loan loss quarter-to-date | | $ | 97 | | | $ | 12 | | | $ | 33 | | | $ | 1,524 | | | $ | 761 | |
| (1) | This is a non-GAAP financial measure. A reconciliation to GAAP is included below. |
| (2) | Does not include $0.4 million of bank property transferred from premises and equipment which is not considered a non-performing asset. |
| | For the Three Months Ended | |
| | March 31, 2018 | | | December 31, 2017 | | | September 30, 2017 | | | June 30, 2017 | | | March 31, 2017 | |
| | (dollars in thousands, except per share data) | |
Selected Income Statement Data: | | | | | | | | | | | | | | | | | | | | |
Interest and Dividend Income | | | | | | | | | | | | | | | | | | | | |
Loans, including fees | | $ | 13,691 | | | $ | 13,443 | | | $ | 13,070 | | | $ | 12,328 | | | $ | 11,554 | |
Taxable securities | | | 632 | | | | 462 | | | | 461 | | | | 460 | | | | 425 | |
Tax-exempt securities | | | 157 | | | | 88 | | | | 82 | | | | 83 | | | | 97 | |
Federal funds sold and other | | | 213 | | | | 256 | | | | 102 | | | | 81 | | | | 60 | |
Total interest and dividend income | | | 14,693 | | | | 14,249 | | | | 13,715 | | | | 12,952 | | | | 12,136 | |
| | | | | | | | | | | | | | | | | | | | |
Interest Expense | | | | | | | | | | | | | | | | | | | | |
Deposits | | | 3,796 | | | | 3,464 | | | | 3,108 | | | | 2,806 | | | | 2,437 | |
FHLB advances and other borrowed funds | | | 484 | | | | 481 | | | | 511 | | | | 464 | | | | 381 | |
Subordinated debentures | | | 143 | | | | 135 | | | | 135 | | | | 125 | | | | 120 | |
Total interest expense | | | 4,423 | | | | 4,080 | | | | 3,754 | | | | 3,395 | | | | 2,938 | |
Net interest income | | | 10,270 | | | | 10,169 | | | | 9,961 | | | | 9,557 | | | | 9,198 | |
Provision for loan losses | | | 97 | | | | 12 | | | | 33 | | | | 1,524 | | | | 761 | |
Net interest income after provision for loan losses | | | 10,173 | | | | 10,157 | | | | 9,928 | | | | 8,033 | | | | 8,437 | |
| | | | | | | | | | | | | | | | | | | | |
Non-Interest Income | | | | | | | | | | | | | | | | | | | | |
Services charges | | | 365 | | | | 332 | | | | 350 | | | | 399 | | | | 325 | |
Gain on sale of loans, net | | | 32 | | | | 22 | | | | 47 | | | | 24 | | | | 25 | |
Loan servicing fees | | | 1,452 | | | | 1,483 | | | | 1,469 | | | | 1,437 | | | | 1,410 | |
Loan servicing rights | | | 10 | | | | (37 | ) | | | 94 | | | | (167 | ) | | | (205 | ) |
Income on OREO | | | 32 | | | | 16 | | | | 20 | | | | 20 | | | | 18 | |
Other | | | 149 | | | | 178 | | | | 107 | | | | 143 | | | | 143 | |
Total non-interest income | | | 2,040 | | | | 1,994 | | | | 2,087 | | | | 1,856 | | | | 1,716 | |
| | | | | | | | | | | | | | | | | | | | |
Non-Interest Expense | | | | | | | | | | | | | | | | | | | | |
Employee compensation and benefits | | | 4,218 | | | | 3,702 | | | | 3,845 | | | | 3,833 | | | | 4,057 | |
Occupancy | | | 204 | | | | 135 | | | | 162 | | | | 180 | | | | 177 | |
Information processing | | | 465 | | | | 423 | | | | 450 | | | | 397 | | | | 362 | |
Professional fees | | | 315 | | | | 406 | | | | 414 | | | | 423 | | | | 414 | |
Business development | | | 299 | | | | 210 | | | | 275 | | | | 286 | | | | 170 | |
OREO expenses | | | 140 | | | | 17 | | | | 50 | | | | 44 | | | | 62 | |
Writedown of OREO | | | - | | | | 820 | | | | 8 | | | | 78 | | | | - | |
Net loss (gain) on OREO | | | - | | | | 10 | | | | 39 | | | | (27 | ) | | | (375 | ) |
Depreciation and amortization | | | 314 | | | | 319 | | | | 323 | | | | 323 | | | | 343 | |
Other | | | 830 | | | | 1,123 | | | | 725 | | | | 1,104 | | | | 685 | |
Total non-interest expense | | | 6,785 | | | | 7,165 | | | | 6,291 | | | | 6,641 | | | | 5,895 | |
Income before income taxes | | | 5,428 | | | | 4,986 | | | | 5,724 | | | | 3,248 | | | | 4,258 | |
Income tax expense | | | 1,374 | | | | 2,855 | | | | 2,120 | | | | 1,190 | | | | 1,626 | |
NET INCOME | | $ | 4,054 | | | $ | 2,131 | | | $ | 3,604 | | | $ | 2,058 | | | $ | 2,632 | |
| | | | | | | | | | | | | | | | | | | | |
Other Data: | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | 1.15 | % | | | 0.62 | % | | | 1.11 | % | | | 0.65 | % | | | 0.85 | % |
Return on average shareholders' equity | | | 11.62 | % | | | 6.05 | % | | | 10.36 | % | | | 6.04 | % | | | 7.85 | % |
Return on average common shareholders' equity (1) | | | 12.04 | % | | | 6.12 | % | | | 10.72 | % | | | 6.15 | % | | | 8.09 | % |
Efficiency ratio (1) | | | 55.12 | % | | | 52.11 | % | | | 51.83 | % | | | 57.74 | % | | | 57.45 | % |
Tangible common equity to tangible assets (1) | | | 8.87 | % | | | 9.13 | % | | | 9.29 | % | | | 9.53 | % | | | 9.62 | % |
| | | | | | | | | | | | | | | | | | | | |
Per Common Share Data: | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.59 | | | $ | 0.31 | | | $ | 0.53 | | | $ | 0.30 | | | $ | 0.39 | |
Diluted | | $ | 0.58 | | | $ | 0.30 | | | $ | 0.52 | | | $ | 0.59 | | | $ | 0.38 | |
Dividends declared | | $ | 0.07 | | | $ | 0.06 | | | $ | 0.06 | | | $ | 0.06 | | | $ | 0.06 | |
(1) This is a non-GAAP financial measure. A reconciliation to GAAP is included below.
| | For the Three Months Ended | |
Non-GAAP Financial Measures: | | March 31, 2018 | | | December 31, 2017 | | | September 30, 2017 | | | June 30, 2017 | | | March 31, 2017 | |
| | (dollars in thousands) | |
Return on average common shareholders' equity reconciliation: | | | | | | | | | | | | | | | | | | | | |
Return on average shareholders' equity | | | 11.62 | % | | | 6.05 | % | | | 10.36 | % | | | 6.04 | % | | | 7.85 | % |
Effect of excluding average preferred shareholders' equity | | | 0.42 | % | | | 0.07 | % | | | 0.36 | % | | | 0.11 | % | | | 0.24 | % |
Return on average common shareholders' equity | | | 12.04 | % | | | 6.12 | % | | | 10.72 | % | | | 6.15 | % | | | 8.09 | % |
| | | | | | | | | | | | | | | | | | | | |
Efficiency ratio GAAP to non-GAAP reconciliation: | | | | | | | | | | | | | | | | | | | | |
Non-interest expense | | $ | 6,785 | | | $ | 7,165 | | | $ | 6,291 | | | $ | 6,641 | | | $ | 5,895 | |
Less: net gain (loss) on sales and write- downs of OREO | | | - | | | | (830 | ) | | | (47 | ) | | | (51 | ) | | | 375 | |
Adjusted non-interest expense (non-GAAP) | | $ | 6,785 | | | $ | 6,335 | | | $ | 6,244 | | | $ | 6,590 | | | $ | 6,270 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | $ | 10,270 | | | $ | 10,169 | | | $ | 9,961 | | | $ | 9,557 | | | $ | 9,198 | |
Non-interest income | | | 2,040 | | | | 1,994 | | | | 2,087 | | | | 1,856 | | | | 1,716 | |
Less: net gain on sales of securities | | | - | | | | (6 | ) | | | - | | | | - | | | | - | |
Operating revenue | | $ | 12,310 | | | $ | 12,157 | | | $ | 12,048 | | | $ | 11,413 | | | $ | 10,914 | |
Efficiency ratio | | | 55.12 | % | | | 52.11 | % | | | 51.83 | % | | | 57.74 | % | | | 57.45 | % |
| | | | | | | | | | | | | | | | | | | | |
| | March 31, 2018 | | | December 31, 2017 | | | September 30, 2017 | | | June 30, 2017 | | | March 31, 2017 | |
| | (dollars in thousands, except share and per share data) | |
Tangible book value per share and tangible common equity to tangible assets reconciliation: | | | | | | | | | | | | | | | | | | | | |
Common equity | | $ | 134,814 | | | $ | 132,986 | | | $ | 131,729 | | | $ | 128,254 | | | $ | 126,074 | |
Less: Goodwill | | | 5,038 | | | | 5,038 | | | | 5,038 | | | | 5,038 | | | | 5,038 | |
Less: Core deposit intangible, net of amortization | | | 806 | | | | 919 | | | | 1,038 | | | | 1,165 | | | | 1,300 | |
Tangible common equity (non-GAAP) | | $ | 128,970 | | | $ | 127,029 | | | $ | 125,653 | | | $ | 122,051 | | | $ | 119,736 | |
Common shares outstanding | | | 6,684,923 | | | | 6,673,381 | | | | 6,657,601 | | | | 6,641,159 | | | | 6,615,232 | |
Tangible book value per share | | $ | 19.29 | | | $ | 19.04 | | | $ | 18.87 | | | $ | 18.38 | | | $ | 18.10 | |
| | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 1,460,257 | | | $ | 1,397,045 | | | $ | 1,359,325 | | | $ | 1,286,634 | | | $ | 1,251,414 | |
Less: Goodwill | | | 5,038 | | | | 5,038 | | | | 5,038 | | | | 5,038 | | | | 5,038 | |
Less: Core deposit intangible, net of amortization | | | 806 | | | | 919 | | | | 1,038 | | | | 1,165 | | | | 1,300 | |
Tangible assets (non-GAAP) | | $ | 1,454,413 | | | $ | 1,391,088 | | | $ | 1,353,249 | | | $ | 1,280,431 | | | $ | 1,245,076 | |
Tangible common equity to tangible assets | | | 8.87 | % | | | 9.13 | % | | | 9.29 | % | | | 9.53 | % | | | 9.62 | % |
| | | | | | | | | | | | | | | | | | | | |
Pre-tax pre-provision core income | | | | | | | | | | | | | | | | | | | | |
Pre-tax net income | | $ | 5,428 | | | $ | 4,986 | | | $ | 5,724 | | | $ | 3,248 | | | $ | 4,258 | |
Provision for loan losses | | | 97 | | | | 12 | | | | 33 | | | | 1,524 | | | | 761 | |
Gain on sale of securities | | | - | | | | (6 | ) | | | - | | | | - | | | | - | |
Severance payments | | | - | | | | - | | | | - | | | | - | | | | 180 | |
Loss on sale of old Green Bay branch location | | | - | | | | - | | | | - | | | | 328 | | | | - | |
Acceleration of business development expenses | | | - | | | | 350 | | | | - | | | | - | | | | - | |
Net loss (gain) on sales and write-downs of OREO | | | - | | | | (830 | ) | | | (47 | ) | | | (51 | ) | | | 375 | |
Net OREO expense | | | 108 | | | | 1 | | | | 30 | | | | 24 | | | | 44 | |
Pre-tax pre-provision core income (non-GAAP) | | $ | 5,633 | | | $ | 4,513 | | | $ | 5,740 | | | $ | 5,073 | | | $ | 5,618 | |
| | For the Three Months Ended | |
| | March 31, 2018 | | | March 31, 2017 | |
| | Average Balance (1) | | | Income/ Expense | | | Yields/ Rates | | | Average Balance (1) | | | Income/ Expense | | | Yields/ Rates | |
| | (dollars in thousands) | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
Investment securities | | $ | 136,722 | | | $ | 789 | | | | 2.31 | % | | $ | 118,825 | | | $ | 522 | | | | 1.76 | % |
Loans (2) | | | 1,172,786 | | | | 13,691 | | | | 4.67 | % | | | 1,043,454 | | | | 11,554 | | | | 4.43 | % |
Interest bearing deposits due from other banks | | | 55,784 | | | | 213 | | | | 1.53 | % | | | 36,996 | | | | 60 | | | | 0.65 | % |
Total interest-earning assets | | $ | 1,365,292 | | | $ | 14,693 | | | | 4.30 | % | | $ | 1,199,275 | | | $ | 12,136 | | | | 4.05 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | | (13,722 | ) | | | | | | | | | | | (13,047 | ) | | | | | | | | |
Other assets | | | 62,000 | | | | | | | | | | | | 52,894 | | | | | | | | | |
Total assets | | $ | 1,413,570 | | | | | | | | | | | $ | 1,239,122 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | |
Savings, NOW, money market, interest checking | | $ | 282,313 | | | | 640 | | | | 0.91 | % | | $ | 258,080 | | | | 355 | | | | 0.55 | % |
Time deposits | | | 742,465 | | | | 3,156 | | | | 1.70 | % | | | 610,857 | | | | 2,082 | | | | 1.36 | % |
Total interest-bearing deposits | | $ | 1,024,778 | | | $ | 3,796 | | | | 1.48 | % | | $ | 868,937 | | | $ | 2,437 | | | | 1.12 | % |
Other borrowings | | | 1,286 | | | | 16 | | | | 4.97 | % | | | 1,863 | | | | 27 | | | | 5.80 | % |
FHLB advances | | | 121,067 | | | | 468 | | | | 1.55 | % | | | 116,617 | | | | 354 | | | | 1.21 | % |
Junior subordinated debentures | | | 15,529 | | | | 143 | | | | 3.68 | % | | | 15,470 | | | | 120 | | | | 3.10 | % |
Total interest-bearing liabilities | | $ | 1,162,660 | | | $ | 4,423 | | | | 1.52 | % | | $ | 1,002,887 | | | $ | 2,938 | | | | 1.17 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing deposits | | | 103,669 | | | | | | | | | | | | 93,323 | | | | | | | | | |
Other liabilities | | | 7,743 | | | | | | | | | | | | 8,838 | | | | | | | | | |
Total liabilities | | $ | 1,274,072 | | | | | | | | | | | $ | 1,105,048 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Shareholders' equity | | | 139,498 | | | | | | | | | | | | 134,074 | | | | | | | | | |
Total liabilities and equity | | $ | 1,413,570 | | | | | | | | | | | $ | 1,239,122 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income | | | | | | $ | 10,270 | | | | | | | | | | | $ | 9,198 | | | | | |
Interest rate spread (3) | | | | | | | | | | | 2.78 | % | | | | | | | | | | | 2.88 | % |
Net interest margin (4) | | | | | | | | | | | 3.01 | % | | | | | | | | | | | 3.07 | % |
Ratio of interest-earning assets to interest- bearing liabilities | | | 1.17 | | | | | | | | | | | | 1.20 | | | | | | | | | |
| (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. |
