County Bancorp, Inc. Announces Fourth Quarter Net Income of $2.9 Million and Record Net Income of $11.0 Million for 2015

Highlights

  • Net income of $2.9 million for the fourth quarter of 2015 and $11.0 million for 2015
  • Earnings per share of $0.48 for the fourth quarter of 2015 and $1.85 for 2015
  • Loan growth of $100.1 million year-over-year

MANITOWOC, Wis., Jan. 20, 2016 (GLOBE NEWSWIRE) — County Bancorp, Inc. (NASDAQ:ICBK) today reported fourth quarter 2015 net income of $2.9 million.  This represents an increase of $0.8 million compared to the net income of the fourth quarter of 2014.  Net income for the year ended December 31, 2015 was $11.0 million which represents the highest annual net income recorded by the Company.  This represents a return on average assets of 1.35% for the year ended December 31, 2015 compared to 1.10% for the year ended December 31, 2014. 

“We are very pleased to share our fourth quarter results, reflecting another strong quarter of loan growth, steady net interest margin, and solid efficiency ratio, all of which contributed to record annual profitability,” said Timothy J. Schneider, President of County Bancorp, Inc. and CEO of its wholly-owned bank subsidiary, Investors Community Bank.  “In alignment with our strategic focus, in November we announced our intention to acquire Fox River Valley Bancorp, Inc. and its wholly owned subsidiary, The Business Bank, with offices in Appleton and Green Bay, Wisconsin.  Subject to customary closing conditions, we are working through the regulatory approval process and anticipate a closing in the second quarter of 2016.  With its commercial banking focus, Fox River Valley brings a solid diversification to our loan portfolio and two strong markets for future growth.  We are very excited about our partnership going forward with Fox River Valley.”

Total assets ended the year at $884.9 million, an increase of $40.1 million over total assets as of September 30, 2015, and an increase of $113.1 million over total assets as of December 31, 2014.  Total loans increased $100.1 million for the year ended December 31, 2015.

Non-performing assets increased to $27.5 million at December 31, 2015, an increase of $13.3 million and $8.8 million from September 30, 2015 and December 31, 2014, respectively. This increase was mainly due to the reclassification of one large relationship; however, we anticipate that it will be resolved in the first half of 2016.

Net income for the quarters ended December 31, 2015 and 2014 was $2.9 million and $2.1 million, respectively, and the increase was primarily the result of loan growth throughout 2015.  Diluted earnings per share increased to $0.48 for the three months ended December 31, 2015 from $0.43 for the three months ended December 31, 2014.  Return on average assets was 1.34% for the three months ended December 31, 2015 compared to 1.11% for the three months ended December 31, 2014. 

Net income for the year ended December 31, 2015 was $11.0 million compared to $8.2 million for the year ended December 31, 2014.  This represents year-over-year growth of 33.7% which was primarily driven by a $2.9 million increase in net interest income and a $0.8 million net recovery of loan losses.

About County Bancorp, Inc.

County Bancorp, Inc., a Wisconsin corporation and registered bank holding company founded in May 1996, and our wholly-owned subsidiary Investors Community Bank, a Wisconsin-chartered bank, are headquartered in Manitowoc, Wisconsin.  The state of Wisconsin is often referred to as “America’s Dairyland,” and one of the niches we have developed is providing financial services to agricultural businesses statewide, with a primary focus on dairy-related lending.  We also serve business and retail customers throughout Wisconsin, with a focus on northeastern and central Wisconsin.  Our customers are served from our full-service locations in Manitowoc and Stevens Point and our loan production offices in Darlington, Eau Claire, 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 information presented in this press release is not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking information contained in this press release. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “plan,” “seek,” “comfortable with,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe” or “continue” or the negative thereof or variations thereon or similar terminology. Factors that may cause actual results to differ materially from those made or suggested by the forward-looking information contained in this press release include those identified in County Bancorp, Inc.’s most recent annual report on Form 10-K and subsequent SEC filings.  Any forward-looking information presented herein is made only as of the date of this press release, and we do not undertake any obligation to update or revise any forward-looking information to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Additional Information for Shareholders

The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval.  In connection with the proposed merger of County Bancorp, Inc. and Fox River Valley Bancorp, Inc., County Bancorp, Inc. filed a registration statement on Form S-4 with the SEC on January 15, 2016. The registration statement includes a proxy statement of Fox River Valley Bancorp, Inc., which also constitutes a prospectus of County Bancorp, Inc., that will be sent to the shareholders of Fox River Valley Bancorp, Inc. Shareholders are advised to read the registration statement and proxy statement/prospectus because it contains important information about County Bancorp, Inc., Fox River Valley Bancorp, Inc. and the proposed transaction.  This document and other documents relating to the transaction filed by County Bancorp, Inc. can be obtained free of charge from the SEC’s website at www.sec.gov. These documents also can be obtained free of charge by accessing County Bancorp, Inc.’s website at www.investorscommunitybank.com under the tab “Investor Relations” and then under “SEC Filings.” Alternatively, these documents can be obtained free of charge from County Bancorp, Inc. upon written request to County Bancorp, Inc., Attn: Secretary, 860 North Rapids Road, Manitowoc, Wisconsin 54221 or by calling (920) 686-9998, or from Fox River Valley upon written request to Fox River Valley Bancorp, Inc., Attn: Secretary, 5643 Waterford Lane, Appleton, Wisconsin 54913 or by calling (920) 739-2660. 

    December 31,

2015
  December 31,

2014
       
Selected Balance Sheet Data:                
(In thousands, except per share data)                
                 
Total assets   $   884,889     $   771,756          
Total loans       748,189         648,122          
Allowance for loan losses       10,405         10,603          
Deposits       672,226         605,469          
Shareholders’ equity       107,024         80,043          
Common equity       99,024         72,043          
                 
Stock Price Information:                
High – Year-to-date   $   24.20        N/A          
Low – Year-to-date   $   15.20       N/A          
Market price (2015)/Book value (2014) per common share   $   19.50     $   16.01          
Common shares outstanding       5,771,001         4,498,790          
                 
                 
Non-Performing Assets:                
(In thousands)                
                 
Nonaccrual loans   $   24,579     $   11,555          
Other real estate owned       2,872         7,137          
Total non-performing assets   $   27,451     $   18,692          
                         
Restructured loans not on nonaccrual   $   610     $   846          
                         
Non-performing assets as a % of total loans     3.67 %     2.88 %        
Non-performing assets as a % of total assets     3.10 %     2.42 %        
Allowance for loan losses as a % of nonperforming assets     37.90 %     56.72 %        
Allowance for loan losses as a % of total loans     1.39 %     1.64 %        
                 
Net charge-off (recoveries) year-to-date   $   (821 )   $   481          
Provision for loan loss year-to-date   $   (1,019 )   $   589          
                 
                 
    For the three months ended   For the year ended
    December 31,

2015
  December 31,

2014
  December 31,

2015
  December 31,

2014
Selected Income Statement Data:                
(In thousands, except per share data)                
                 
Net interest income   $   6,986     $   6,261     $   26,247     $   23,360  
Provision for loan losses       306         589         (1,019 )       589  
Net interest income after provision for (recovery of) loan losses       6,680         5,672         27,266         22,771  
Non-interest income       2,375         1,981         7,685         7,148  
Non-interest expense       4,475         4,290         17,458         17,025  
Income tax expense       1,680         1,281         6,519         4,684  
Net income   $   2,900     $   2,082     $   10,974     $   8,210  
                                 
Return on average assets     1.34 %     1.11 %     1.35 %     1.10 %
Return on average shareholders’ equity     9.58 %     8.88 %     9.45 %     9.02 %
Return on average common shareholders’ equity (1)     11.35 %     11.10 %     11.27 %     11.37 %
Efficiency ratio (1)     47.08 %     45.94 %     49.95 %     50.99 %
                 
Per Common Share Data:                
Basic   $   0.48     $   0.44     $   1.85     $   1.73  
Diluted   $   0.48     $   0.43     $   1.82     $   1.69  
Dividends declared   $   0.04     $   –      $   0.16     $   –   
                 
(1) This is a non-GAAP financial measure.  A reconciliation to GAAP is included below.        
                 
Non interest income:                
Service charges   $   295     $   229     $   1,039     $   788  
Loan servicing fees       1,276         1,199         4,924         4,717  
Loan servicing rights       424         105         399         221  
Gain on sale of loans       263         70         429         321  
Income on OREO       5         109         248         618  
Other       112         269         646         483  
Total   $   2,375     $   1,981     $   7,685     $   7,148  
                                 
Non-interest expense:                
Employee compensation and benefits   $   2,537     $   2,581     $   10,769     $   10,209  
Occupancy       78         70         338         299  
Information processing       178         234         705         875  
Professional fees       450         170         1,350         866  
FDIC assessment       138         129         459         526  
OREO expenses       23         64         284         750  
Writedown of OREO       74         461         256         1,190  
Net loss (gain) on OREO       (6 )       43         254         278  
Business development       171         11         542         413  
Other       832         527         2,501         1,619  
Total   $   4,475     $   4,290     $   17,458     $   17,025  
                                 
Non-GAAP Financial Measures                
                 
Return on average common shareholders’ equity reconciliation:                
Return on average shareholders’ equity     9.58 %     8.88 %     9.45 %     9.02 %
Effect of excluding average preferred shareholders’ equity     1.77 %     2.22 %     1.82 %     2.35 %
Return on average common shareholders’ equity     11.35 %     11.10 %     11.27 %     11.37 %
                 
Efficiency ratio GAAP to non-GAAP reconciliation:                
Non-interest expense   $   4,475     $   4,290     $   17,458     $   17,025  
Less: net loss on sales and write-downs of OREO       (68 )       (504 )       (510 )       (1,468 )
Adjusted non-interest expense (non-GAAP)   $   4,407     $   3,786     $   16,948     $   15,557  
                                 
Net interest income   $   6,986     $   6,261     $   26,247     $   23,360  
Non-interest income       2,375         1,981         7,685         7,148  
Operating revenue   $   9,361     $   8,242     $   33,932     $   30,508  
Efficiency ratio     47.08 %     45.94 %     49.95 %     50.99 %



    Three Months Ended
    December 31, 2015   December 31, 2014
    Average

Balance (1)
  Income/

Expense
  Yields/

Rates
  Average

Balance (1)
  Income/

Expense
  Yields/

Rates
Assets                        
Investment securities   $   84,667     $   364       1.72 %   $   79,981     $   345       1.72 %
Loans (2)       735,120         8,614       4.69 %       615,772         7,712       5.01 %
Interest bearing deposits due from other banks       16,198         24       0.59 %       19,431         20       0.42 %
Total interest-earning assets   $   835,985     $   9,002       4.31 %   $   715,184     $   8,077       4.52 %
                         
Allowance for loan losses       (9,927 )               (10,671 )        
Other assets       39,642                 43,947          
Total assets   $   865,700             $   748,460          
                                 
Liabilities                        
Savings, NOW, money market, interest checking       172,155         203       0.47 %       144,747         171       0.47 %
Time deposits       421,340         1,493       1.42 %       385,581         1,316       1.37 %
Total interest-bearing deposits   $   593,495     $   1,696       1.14 %   $   530,328     $   1,487       1.12 %
Other borrowings       4,287         55       5.09 %       11,988         118       3.92 %
FHLB advances       59,331         203       1.37 %       22,130         90       1.63 %
Junior subordinated debentures       12,372         61       1.97 %       12,372         120       3.88 %
Total interest-bearing liabilities   $   669,485     $   2,015       1.20 %   $   576,818     $   1,815       1.26 %
                         
Non-interest bearing deposits       65,970                 69,516          
Other liabilities       9,217                 8,374          
Total liabilities   $   744,672             $   654,708          
                                 
SBLF preferred stock (3)       15,000                 15,000          
Shareholders’ equity       106,028                 78,752          
Total liabilities and equity   $   865,700             $   748,460          
                                 
Net interest income           6,986                 6,261      
Interest rate spread (4)             3.11 %             3.26 %
Net interest margin (5)             3.34 %             3.50 %
Ratio of interest-earning assets to interest -bearing liabilities       1.25                 1.24          
                         
    Year Ended
    December 31, 2015   December 31, 2014
    Average

Balance (1)
  Income/

Expense
  Yields/

Rates
  Average

Balance (1)
  Income/

Expense
  Yields/

Rates
Assets                        
Investment securities   $   82,812     $   1,401       1.69 %   $   77,060     $   1,371       1.78 %
Loans (2)       680,279         32,301       4.75 %       590,974         29,416       4.98 %
Interest bearing deposits due from other banks       17,333         65       0.38 %       42,208         110       0.26 %
Total interest-earning assets   $   780,424     $   33,767       4.33 %   $   710,242     $   30,897       4.35 %
                         
Allowance for loan losses       (10,309 )               (10,566 )        
Other assets       41,416                 46,716          
Total assets   $   811,531             $   746,392          
                                 
Liabilities                        
Savings, NOW, money market, interest checking       158,610         746       0.47 %       134,378         639       0.48 %
Time deposits       401,643         5,492       1.37 %       409,175         5,515       1.35 %
Total interest-bearing deposits   $   560,253     $   6,238       1.11 %   $   543,553     $   6,154       1.13 %
Other borrowings       8,088         276       3.41 %       19,992         322       1.61 %
FHLB advances       44,331         606       1.37 %       12,279         581       4.73 %
Junior subordinated debentures       12,372         400       3.23 %       12,372         480       3.88 %
Total interest-bearing liabilities   $   625,044     $   7,520       1.20 %   $   588,196     $   7,537       1.28 %
                         
Non-interest bearing deposits       62,430                 59,956          
Other liabilities       7,947                 7,185          
Total liabilities   $   695,421             $   655,337          
                                 
SBLF preferred stock (3)       15,000                 15,000          
Shareholders’ equity       101,110                 76,056          
Total liabilities and equity   $   811,531             $   746,393          
                                 
Net interest income           26,247                 23,360      
Interest rate spread (4)             3.13 %             3.07 %
Net interest margin (5)             3.36 %             3.29 %
Ratio of interest-earning assets to interest -bearing liabilities       1.25                 1.21          
                         
(1) Average balances are calculated on amortized cost.                      
(2) Includes loan fee income, nonaccruing loan balances, and interest received on such loans.            
(3) The SBLF preferred stock refers to our Series C noncumulative perpetual preferred stock issued to the U.S. Treasury through the U.S. Treasury’s Small Business Lending Fund program.
(4) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest bearing liabilities.
(5) Net interest margin represents net interest income divided by average total interest-earning assets.        

Investor Relations ContactTimothy J. SchneiderCEO, Investors Community BankPhone: (920) 686-5604 Email: tschneider@investorscommunitybank.com

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