Second Quarter Highlights
- Net income of $2.1 million for the second quarter of 2017, an increase of 5.8% over the second quarter of 2016
- Book value per share of $19.31 and tangible book value per share of $18.38 as of June 30, 2017
- Loan growth of $26.7 million in the second quarter of 2017
- Deposit growth of $12.3 million in the second quarter of 2017
- 29.2% Reduction of non-performing assets since June 30, 2016
MANITOWOC, Wis., July 20, 2017 (GLOBE NEWSWIRE) -- County Bancorp, Inc. (NASDAQ:ICBK), the holding company of Investors Community Bank, a commercial bank headquartered in Manitowoc, Wisconsin, reported net income of $2.1 million, or $0.29 diluted earnings per share, for the second quarter of 2017, compared to net income of $1.9 million, or $0.30 diluted earnings per share, for the second quarter of 2016. This represents a return on average assets of 0.65% for the three months ended June 30, 2017, compared to 0.75% for the three months ended June 30, 2016.
“Our financial performance this quarter was impacted by continuing slow secondary market sales of Farm Service Agency guarantees, which is due to procedural changes that are delaying the normal sales of these loans,” said Tim Schneider, President of County Bancorp, Inc. and CEO of Investors Community Bank. “In addition, our net income was negatively impacted by an increase in the provision for loan losses which is primarily a product of lower milk prices over the past couple of years and a weaker agricultural economy overall. Although we have provided a heavier provision, our history of agricultural credit losses through similar cycles has been minimal.”
“Loan growth in both the commercial and agricultural portfolios was solid for the second quarter and the pipelines for both are robust,” continued Schneider. “The addition of experienced bankers to the commercial team over the last year, as well as the relationships our entire team is nurturing, has generated good results. We also continue to find new opportunities with agricultural clients throughout our lending footprint. Although commodity prices have seen compression over the past several years, there are still sound farm operators who we desire to do business with. We also saw considerable improvement in our non-performing assets and expect this trend to continue.”
Loans and Total Assets
Total assets at June 30, 2017 were $1.3 billion, an increase of $44.0 million over total assets as of December 31, 2016, and an increase of $126.0 million over total assets as of June 30, 2016. Total loans were $1.1 billion at June 30, 2017, which represents a $45.2 million increase over total loans at December 31, 2016, and a $115.4 million increase over total loans at June 30, 2016. We have seen increased loan demand in our market areas; agricultural loans have increased $19.3 million and commercial loans have increased $20.2 million in 2017.
Deposits and Other Borrowings
Total deposits at June 30, 2017 were $993.7 million, an increase of $16.1 million over total deposits as of December 31, 2016, and an increase of $101.1 million over total deposits as of June 30, 2016. Core deposit generation continues to be challenging in the current competitive, rising-rate environment. However, we have been able to supplement our deposit needs with borrowings from the Federal Home Loan Bank of Chicago (“FHLB”). Our FHLB borrowings increased $25.4 million from $107.9 million at December, 31, 2016 to $133.3 million at June 30, 2017.
Net Interest Income and Margin
As the result of increased loan volume, net interest income increased $1.3 million to $9.6 million for the three months ended June 30, 2017, and increased $3.5 million to $18.8 million for the six months ended June 30, 2017 when compared to the same periods in 2016.
Net interest margin decreased to 3.13% for the three months ended June 30, 2017, compared to 3.32% for the three months ended June 30, 2016. For the six months ended June 30, 2017, net interest margin decreased to 3.10%, compared to 3.26% for the six months ended June 30, 2016. The decrease in margin is the result of market-driven rate compression on new loans of 0.10% and increased funding costs of 0.06%.
Non-Interest Income and Expense
Non-interest income for the second quarter of 2017 decreased $0.9 million to $1.9 million from the second quarter of 2016 and decreased $1.1 million to $3.6 million for the six months ended June 30, 2017. The decrease is primarily due to a $1.0 million decrease in fee on loan servicing rights during the second quarter of 2017. The decrease in loan servicing rights resulted from lower volumes of secondary market sales and participations due to changes in Farm Service Agency regulations that merely impact the timing of expected revenue recognition.
Non-interest expense for the second quarter of 2017 decreased $0.8 million to $6.6 million from the second quarter of 2016 primarily as the result of the elimination of one-time merger related expenses that occurred during the second quarter of 2016 in connection with our acquisition of Fox River Valley Bancorp, Inc. (“Fox River Valley”) in May, 2016, offset by $0.7 million increase in employee compensation and benefits and a $0.3 million loss on the sale of our Green Bay, Wisconsin branch. It is anticipated the existing Green Bay branch will be relocated to our new location on July 31, 2017, once the renovations on the new location are complete.
Non-interest expense year-over-year has increased from $12.0 million for the six months ended June 30, 2016 to $12.5 million for the six months ended June 30, 2017. The increase is directly related to the increase in employee compensation and benefits related to the approximately 35% increase in employees since the acquisition of Fox River Valley, and the related operating costs of the two Fox River Valley branches that were acquired in May 2016.
Asset Quality
Non-performing assets have decreased $3.9 million since December 31, 2016 to $18.9 million at June 30, 2017, and have decreased $7.8 million since June 30, 2016. As a percentage of total loans, non-performing assets has improved to 1.76% at June 30, 2017 from 2.78% at June 30, 2016, which is the lowest level since December, 2013.
Net charge-offs for the six months ended June 30, 2017 were $1.4 million which is an increase of $0.5 million from the six months ended June 30, 2016. The net charge-offs for 2017 primarily consisted of one commercial real estate relationship that was fully reserved for in the allowance for loan losses; there is no further exposure to this customer.
Provision for loan losses for the three months ended June 30, 2017 was $1.5 million compared to $0.5 million for the three months ended June 30, 2016. The increased provision is primarily the result of loan growth and the weaker agricultural economy.
Announcement of Hiring of Chief Financial Officer
The Company also announced today the appointment of Glen Stiteley as Treasurer and Chief Financial Officer of the Company and Executive Vice President, Chief Financial Officer and Treasurer of the Bank. Mr. Stiteley, age 47, will join the organizations in August of 2017. “Glen has a wealth of expertise and we are excited that he will be joining our team. Glen has developed a comprehensive working knowledge of the commercial banking sector, including experience with public companies like ours. Most recently, he completed twelve years of service as the Chief Financial Officer of First Community Financial Partners, Inc., a $1.3 billion NASDAQ registered, bank holding company headquartered outside Chicago, which was recently acquired by another financial services company. Glen also spent ten years with McGladrey & Pullen, LLP in its financial institution practice. The breadth and depth of Glen’s experience complements our core values and strategies and we are certain that his leadership will have a positive impact on our performance and growth,” said Mr. Schneider. “We also thank David Kohlmeyer, who has done an exceptional job serving as interim Chief Financial Officer and Treasurer of the Company and interim Chief Financial Officer of the Bank over the course of the past year,” continued Mr. Schneider. “Mr. Kohlmeyer will continue to serve in this capacity until Mr. Stiteley’s appointment becomes effective and then will remain with the Bank as Senior Vice President of Finance."
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 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. 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.
County Bancorp, Inc.
Consolidated Financial Summary (Unaudited)
| June 30, 2017 | March 31, 2017 | December 31, 2016 | June 30, 2016 | |||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||
| Selected Balance Sheet Data: | ||||||||||||||||
| Total assets | $ | 1,286,634 | $ | 1,251,414 | $ | 1,242,670 | $ | 1,160,589 | ||||||||
| Total loans | 1,075,668 | 1,049,009 | 1,030,486 | 960,310 | ||||||||||||
| Allowance for loan losses | (13,503 | ) | (13,428 | ) | (12,645 | ) | (10,791 | ) | ||||||||
| Securities available for sale, at fair value | 115,148 | 115,431 | 123,437 | 129,036 | ||||||||||||
| Goodwill | 5,038 | 5,038 | 5,038 | 5,038 | ||||||||||||
| Core deposit intangible, net of amortization | 1,165 | 1,300 | 1,441 | 1,747 | ||||||||||||
| Deposits | 993,663 | 981,317 | 977,518 | 892,535 | ||||||||||||
| Shareholders' equity | 136,254 | 134,074 | 131,288 | 125,789 | ||||||||||||
| Common equity | 128,254 | 126,074 | 123,288 | 117,789 | ||||||||||||
| Stock Price Information: | ||||||||||||||||
| High - Year-to-date | $ | 35.89 | $ | 35.89 | $ | 26.97 | $ | 22.80 | ||||||||
| Low - Year-to-date | $ | 22.73 | $ | 24.70 | $ | 18.25 | $ | 18.25 | ||||||||
| Market price per common share | $ | 24.00 | $ | 29.06 | $ | 26.97 | $ | 20.62 | ||||||||
| Book value per share | $ | 19.31 | $ | 19.06 | $ | 18.72 | $ | 18.15 | ||||||||
| Tangible book value per share (1) | $ | 18.38 | $ | 18.10 | $ | 17.74 | $ | 17.07 | ||||||||
| Average diluted shares of common stock year-to-date | 6,701,578 | 6,727,502 | 6,415,204 | 6,085,716 | ||||||||||||
| Common shares outstanding | 6,641,159 | 6,615,232 | 6,586,335 | 6,501,031 | ||||||||||||
| Non-Performing Assets: | ||||||||||||||||
| Nonaccrual loans | $ | 12,412 | $ | 15,263 | $ | 20,107 | $ | 23,942 | ||||||||
| Other real estate owned | 6,520 | 6,597 | 2,763 | 2,789 | ||||||||||||
| Total non-performing assets | $ | 18,932 | $ | 21,860 | $ | 22,870 | $ | 26,731 | ||||||||
| Restructured loans not on nonaccrual | $ | 4,523 | $ | 4,446 | $ | 4,300 | $ | 3,583 | ||||||||
| Non-performing assets as a % of total loans | 1.76 | % | 2.08 | % | 2.22 | % | 2.78 | % | ||||||||
| Non-performing assets as a % of total assets | 1.47 | % | 1.75 | % | 1.84 | % | 2.30 | % | ||||||||
| Allowance for loan losses as a % of nonperforming assets | 71.32 | % | 61.43 | % | 55.29 | % | 40.37 | % | ||||||||
| Allowance for loan losses as a % of total loans | 1.26 | % | 1.28 | % | 1.23 | % | 1.12 | % | ||||||||
| Net charge-offs (recoveries) year-to-date | $ | 1,428 | $ | (22 | ) | $ | 719 | $ | 896 | |||||||
| Provision for loan loss year-to-date | $ | 2,285 | $ | 761 | $ | 2,959 | $ | 1,282 | ||||||||
(1) This is a non-GAAP financial measure. A reconciliation to GAAP is included below.
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | |||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||
| Selected Income Statement Data: | ||||||||||||||||
| Net interest income | $ | 9,557 | $ | 8,304 | $ | 18,755 | $ | 15,241 | ||||||||
| Provision for loan losses | 1,524 | 470 | 2,285 | 1,282 | ||||||||||||
| Net interest income after provision for loan losses | 8,033 | 7,834 | 16,470 | 13,959 | ||||||||||||
| Non-interest income | 1,856 | 2,758 | 3,572 | 4,695 | ||||||||||||
| Non-interest expense | 6,641 | 7,453 | 12,536 | 12,044 | ||||||||||||
| Income tax expense | 1,190 | 1,194 | 2,816 | 2,489 | ||||||||||||
| Net income | $ | 2,058 | $ | 1,945 | $ | 4,690 | $ | 4,121 | ||||||||
| Return on average assets | 0.65 | % | 0.75 | % | 0.75 | % | 0.85 | % | ||||||||
| Return on average shareholders' equity | 6.04 | % | 6.53 | % | 6.94 | % | 7.23 | % | ||||||||
| Return on average common shareholders' | 6.15 | % | 6.72 | % | 7.13 | % | 7.76 | % | ||||||||
| equity (1) | ||||||||||||||||
| Efficiency ratio (1) | 57.74 | % | 68.18 | % | 57.6 | % | 60.44 | % | ||||||||
| Per Common Share Data: | ||||||||||||||||
| Basic | $ | 0.3 | $ | 0.31 | $ | 0.68 | $ | 0.67 | ||||||||
| Diluted | $ | 0.29 | $ | 0.3 | $ | 0.68 | $ | 0.65 | ||||||||
| Dividends declared | $ | 0.06 | $ | 0.05 | $ | 0.12 | $ | 0.1 | ||||||||
| Non-interest income: | ||||||||||||||||
| Service charges | $ | 399 | $ | 411 | $ | 724 | $ | 688 | ||||||||
| Gain on sale of loans | 24 | 61 | 49 | 161 | ||||||||||||
| Loan servicing fees | 1,437 | 1,316 | 2,847 | 2,613 | ||||||||||||
| Loan servicing rights | (167 | ) | 816 | (372 | ) | 966 | ||||||||||
| Income on OREO | 20 | 9 | 38 | 14 | ||||||||||||
| Other | 143 | 145 | 286 | 253 | ||||||||||||
| Total | $ | 1,856 | $ | 2,758 | $ | 3,572 | $ | 4,695 | ||||||||
| Non-interest expense: | ||||||||||||||||
| Employee compensation and benefits | $ | 3,833 | $ | 3,092 | $ | 7,890 | $ | 6,093 | ||||||||
| Occupancy | 180 | 114 | 357 | 207 | ||||||||||||
| Information processing | 397 | 1,477 | 759 | 1,757 | ||||||||||||
| Professional fees | 423 | 725 | 837 | 1,034 | ||||||||||||
| Business development | 286 | 145 | 456 | 285 | ||||||||||||
| FDIC assessment | 96 | 124 | 188 | 261 | ||||||||||||
| OREO expenses | 44 | 57 | 107 | 93 | ||||||||||||
| Writedown of OREO | 78 | - | 78 | 84 | ||||||||||||
| Net gain on OREO | (27 | ) | (89 | ) | (402 | ) | (89 | ) | ||||||||
| Depreciation and amortization | 323 | 187 | 666 | 282 | ||||||||||||
| Other | 1,008 | 1,621 | 1,600 | 2,037 | ||||||||||||
| Total | $ | 6,641 | $ | 7,453 | $ | 12,536 | $ | 12,044 | ||||||||
(1) This is a non-GAAP financial measure. A reconciliation to GAAP is included below.
Non-GAAP Financial Measures:
| For the Three Months Ended | For the Six Months Ended | |||||||||||||||
| June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | |||||||||||||
| (dollars in thousands) | ||||||||||||||||
| Return on average common shareholders' equity reconciliation: | ||||||||||||||||
| Return on average shareholders' equity | 6.04 | % | 6.53 | % | 6.94 | % | 7.23 | % | ||||||||
| Effect of excluding average preferred shareholders' equity | 0.11 | % | 0.19 | % | 0.19 | % | 0.53 | % | ||||||||
| Return on average common shareholders' equity | 6.15 | % | 6.72 | % | 7.13 | % | 7.76 | % | ||||||||
| Efficiency ratio GAAP to non-GAAP reconciliation: | ||||||||||||||||
| Non-interest expense | $ | 6,641 | $ | 7,453 | $ | 12,536 | $ | 12,044 | ||||||||
| Less: net gain (loss) on sales and write-downs of OREO | (51 | ) | 89 | 324 | 5 | |||||||||||
| Adjusted non-interest expense (non-GAAP) | $ | 6,590 | $ | 7,542 | $ | 12,860 | $ | 12,049 | ||||||||
| Net interest income | $ | 9,557 | $ | 8,304 | $ | 18,755 | $ | 15,241 | ||||||||
| Non-interest income | 1,856 | 2,758 | 3,572 | 4,695 | ||||||||||||
| Operating revenue | $ | 11,413 | $ | 11,062 | $ | 22,327 | $ | 19,936 | ||||||||
| Efficiency ratio | 57.74 | % | 68.18 | % | 57.60 | % | 60.44 | % | ||||||||
| June 30, 2017 | March 31, 2017 | December 31, 2016 | June 30, 2016 | |||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||
| Tangible book value per share reconciliation: | ||||||||||||||||
| Common equity | $ | 128,254 | $ | 126,074 | $ | 123,288 | $ | 117,789 | ||||||||
| Less: Goodwill | 5,038 | 5,038 | 5,038 | 5,038 | ||||||||||||
| Less: Core deposit intangible, net of amortization | 1,165 | 1,300 | 1,441 | 1,747 | ||||||||||||
| Tangible common equity (non-GAAP) | $ | 122,051 | $ | 119,736 | $ | 116,809 | $ | 111,004 | ||||||||
| Common shares outstanding | 6,641,159 | 6,615,232 | 6,586,335 | 6,501,031 | ||||||||||||
| Tangible book value per share | $ | 18.38 | $ | 18.10 | $ | 17.74 | $ | 17.07 | ||||||||
| For the Three Months Ended | ||||||||||||||||||||||||
| June 30, 2017 | June 30, 2016 | |||||||||||||||||||||||
| Average Balance (1) | Income/ Expense | Yields/ Rates | Average Balance (1) | Income/ Expense | Yields/ Rates | |||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Investment securities | $ | 113,453 | $ | 544 | 1.92 | % | $ | 103,809 | $ | 445 | 1.71 | % | ||||||||||||
| Loans (2) | 1,064,808 | 12,328 | 4.63 | % | 876,331 | 10,205 | 4.66 | % | ||||||||||||||||
| Interest bearing deposits due from other banks | 44,218 | 80 | 0.73 | % | 21,651 | 50 | 0.92 | % | ||||||||||||||||
| Total interest-earning assets | $ | 1,222,479 | $ | 12,952 | 4.24 | % | $ | 1,001,791 | $ | 10,700 | 4.27 | % | ||||||||||||
| Allowance for loan losses | (14,162 | ) | (11,276 | ) | ||||||||||||||||||||
| Other assets | 52,639 | 53,636 | ||||||||||||||||||||||
| Total assets | $ | 1,260,956 | $ | 1,044,151 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Savings, NOW, money market, interest checking | $ | 235,196 | 370 | 0.63 | % | $ | 175,672 | 232 | 0.53 | % | ||||||||||||||
| Time deposits | 643,236 | 2,436 | 1.51 | % | 528,228 | 1,763 | 1.34 | % | ||||||||||||||||
| Total interest-bearing deposits | $ | 878,432 | $ | 2,806 | 1.28 | % | $ | 703,900 | $ | 1,995 | 1.13 | % | ||||||||||||
| Other borrowings | 1,605 | 23 | 5.75 | % | 3,024 | 45 | 5.95 | % | ||||||||||||||||
| FHLB advances | 131,102 | 441 | 1.34 | % | 105,658 | 287 | 1.09 | % | ||||||||||||||||
| Junior subordinated debentures | 15,470 | 125 | 3.23 | % | 13,973 | 69 | 1.98 | % | ||||||||||||||||
| Total interest-bearing liabilities | $ | 1,026,609 | $ | 3,395 | 1.32 | % | $ | 826,555 | $ | 2,396 | 1.16 | % | ||||||||||||
| Non-interest-bearing deposits | 89,930 | 90,328 | ||||||||||||||||||||||
| Other liabilities | 8,162 | 8,121 | ||||||||||||||||||||||
| Total liabilities | $ | 1,124,701 | $ | 925,004 | ||||||||||||||||||||
| Shareholders' equity | 136,255 | 119,147 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 1,260,956 | $ | 1,044,151 | ||||||||||||||||||||
| Net interest income | $ | 9,557 | $ | 8,304 | ||||||||||||||||||||
| Interest rate spread (3) | 2.92 | % | 3.11 | % | ||||||||||||||||||||
| Net interest margin (4) | 3.13 | % | 3.32 | % | ||||||||||||||||||||
| Ratio of interest-earning assets to interest- bearing liabilities | 1.19 | 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) 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.
| For the Six Months Ended | ||||||||||||||||||||||||
| June 30, 2017 | June 30, 2016 | |||||||||||||||||||||||
| Average Balance (1) | Income/ Expense | Yields/ Rates | Average Balance (1) | Income/ Expense | Yields/ Rates | |||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Investment securities | $ | 116,139 | $ | 1,065 | 1.84 | % | $ | 92,871 | $ | 794 | 1.71 | % | ||||||||||||
| Loans (2) | 1,054,131 | 23,882 | 4.53 | % | 822,629 | 18,935 | 4.60 | % | ||||||||||||||||
| Interest bearing deposits due from other banks | 40,607 | 141 | 0.69 | % | 20,382 | 89 | 0.87 | % | ||||||||||||||||
| Total interest-earning assets | $ | 1,210,877 | $ | 25,088 | 4.14 | % | $ | 935,882 | $ | 19,818 | 4.24 | % | ||||||||||||
| Allowance for loan losses | (13,604 | ) | (11,056 | ) | ||||||||||||||||||||
| Other assets | 52,766 | 47,361 | ||||||||||||||||||||||
| Total assets | $ | 1,250,039 | $ | 972,187 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Savings, NOW, money market, interest checking | $ | 246,638 | 725 | 0.59 | % | $ | 175,141 | 441 | 0.50 | % | ||||||||||||||
| Time deposits | 627,046 | 4,518 | 1.44 | % | 484,228 | 3,366 | 1.39 | % | ||||||||||||||||
| Total interest-bearing deposits | $ | 873,684 | $ | 5,243 | 1.20 | % | $ | 659,369 | $ | 3,807 | 1.15 | % | ||||||||||||
| Other borrowings | 1,735 | 51 | 5.84 | % | 3,498 | 93 | 5.33 | % | ||||||||||||||||
| FHLB advances | 123,859 | 794 | 1.28 | % | 94,400 | 542 | 1.15 | % | ||||||||||||||||
| Junior subordinated debentures | 15,470 | 245 | 3.17 | % | 13,172 | 135 | 2.05 | % | ||||||||||||||||
| Total interest-bearing liabilities | $ | 1,014,748 | $ | 6,333 | 1.24 | % | $ | 770,439 | $ | 4,577 | 1.19 | % | ||||||||||||
| Non-interest-bearing deposits | 91,626 | 75,340 | ||||||||||||||||||||||
| Other liabilities | 8,500 | 7,973 | ||||||||||||||||||||||
| Total liabilities | $ | 1,114,874 | $ | 853,752 | ||||||||||||||||||||
| SBLF preferred stock (3) | - | 4,368 | ||||||||||||||||||||||
| Shareholders' equity | 135,165 | 114,067 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 1,250,039 | $ | 972,187 | ||||||||||||||||||||
| Net interest income | $ | 18,755 | $ | 15,241 | ||||||||||||||||||||
| Interest rate spread (4) | 2.90 | % | 3.05 | % | ||||||||||||||||||||
| Net interest margin (5) | 3.10 | % | 3.26 | % | ||||||||||||||||||||
| Ratio of interest-earning assets to interest- bearing liabilities | 1.19 | 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 Noncumulative Perpetual Preferred Stock, Series C, issued to the U.S. Treasury through the U.S. Treasury’s Small Business Lending Fund program. This stock was redeemed on February 23, 2016.
(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.