Highlights
- Net income of $3.5 million for the third quarter of 2018
- Diluted earnings per share of $0.50 for the third quarter of 2018
- Loan growth of $21.4 million during the third quarter of 2018, an increase of 1.8%
- Gross loans serviced increased $37.9 million during the third quarter of 2018, an increase of 2.1%
MANITOWOC, Wis, Oct. 22, 2018 (GLOBE NEWSWIRE) -- 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 $3.5 million, or $0.50 diluted earnings per share, for the third quarter of 2018, compared to net income of $3.9 million, or $0.55 diluted earnings per share, for the second quarter of 2018 and $3.6 million, or $0.52 diluted earnings per share, for the third quarter of 2017. This represents a return on average assets of 0.94% for the quarter ended September 30, 2018, compared to 1.04% for the quarter ended June 30, 2018 and 1.11% for the quarter ended September 30, 2017.
“Our financial performance this quarter was solid,” said Timothy J. Schneider, President of County Bancorp, Inc. and CEO of Investors Community Bank. “We are starting to see some positive traction on asset repricing as reflected in the 0.21% asset yield improvement from the quarter ended June 30, 2018. The deposit market remains competitive, with interest-bearing liability yields increasing 0.19% compared to the quarter ended June 30, 2018. During the third quarter of 2018, we had solid loan growth of $21.4 million in on-balance sheet and $16.5 million in sold and serviced loans.”
“We expect loan growth to be balanced with our ability to grow core deposits which grew by $15.1 million during the third quarter of 2018,” stated Schneider. “Brokered deposits, national deposits, and FHLB advances decreased by $22.6 million in that same timeframe. Our provisions for loan losses increased in the third quarter compared to the second quarter due to specific reserves on a newly added impaired agricultural loan, in addition to an increase in substandard rated credits that are not considered impaired. This was partially offset by continued principal pay downs on impaired loans.”
Schneider added, “We believe we are managing this challenging agriculture economy well, and we are encouraged by the announcement of a pending revision to the North American Free Trade Agreement among the U.S., Canada and Mexico, which included a pledge to curb protection for Canada’s dairy industry. Long term, we feel this revised agreement, called the United States Mexico Canada Agreement, will have a positive impact on overall dairy prices. We continue to be diligent in monitoring our classified agricultural credits and remain committed to working through this cycle in agriculture.”
Loans and Total Assets
Total assets at September 30, 2018 were $1.5 billion, an increase of $117.9 million, or 8.4%, and $155.6 million, or 11.5%, over total assets as of December 31, 2017 and September 30, 2017, respectively. Total loans were $1.2 billion at September 30, 2018, which represents a $54.0 million, or 4.6%, and $76.3 million, or 6.8%, increase over total loans at December 31, 2017 and September 30, 2017, respectively. Loan growth in the third quarter of 2018 was $21.4 million, an increase of 1.8%, from June 30, 2018.
In addition to on-balance sheet loan growth, participated loans that we continue to service totaled $644.0 million at September 30, 2018, which is an increase of $43.4 million, or 7.2%, and $50.7 million, or 8.5%, over participated loans that we continue to service at December 31, 2017 and September 30, 2017, respectively. During the third quarter, participated loans that we continue to service increased $16.5 million, or 2.6%, over loans sold and serviced as of June 30, 2018.
Deposits
Total deposits at September 30, 2018 were $1.2 billion, an increase of $98.7 million, or 8.9%, and $142.7 million, or 13.4%, over total deposits as of December 31, 2017 and September 30, 2017, respectively. Core deposit (demand deposits, money market accounts, and certificates of deposit) increased $15.1 million during the third quarter and $33.2 million during the first nine months of 2018. 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 September 30, 2018 were $490.7 million, which was a decrease of $16.8 million, or 3.3%, from June 30, 2018, but was an increase of $65.7 million, or 15.5%, from December 31, 2017, and an increase of $63.3 million, or 14.8%, from September 30, 2017.
Due to our deposit growth in 2018, we have been able to decrease our FHLB borrowings by $19.1 million, or 15.7%, since December 31, 2017, and by $25.9 million, or 20.2%, since September 30, 2017.
Net Interest Income and Margin
Net interest income improved to $10.6 million for the three months ended September 30, 2018, which is a $0.3 million and $0.6 million increase from the three months ended June 30, 2018 and the three months ended September 30, 2017, respectively, primarily due to growth in loans and securities available for sale.
For the nine months ended September 30, 2018, net interest income improved 8.7% to $31.2 million from $28.7 million for the nine months ended September 30, 2017.
Net interest margin was to 2.89% for the three months ended September 30, 2018, which is an increase from 2.87% for the three months ended June 30, 2018, and a decrease from 3.17% for the three months ended September 30, 2017. Despite asset yields improving over the linked quarter, only a slight improvement was realized in net interest margin due to continued increased deposits costs and the addition of $30 million of junior subordinated debentures during the second quarter of 2018. Year-over-year net interest margin decreased by twenty basis points primarily due to interest expense related to the $30.0 million of junior subordinated debentures that were issued during the second quarter of 2018, which was partially offset by a twenty-nine basis point improvement in loan yields.
Yields on interest bearing assets increased by 0.21% between the third quarter of 2018 and the second quarter of 2018 while the cost of interest bearing liabilities increased by 0.19% between the same periods. For the nine months ended September 30, 2018, yields on interest bearing assets increased by 0.18%, and the cost of interest bearing liabilities increased by 0.44% compared to the nine months ended September 30, 2017.
Non-Interest Income and Expense
Non-interest income for the three months ended September 30, 2018 decreased by $0.1 million, or 6.9%, to $2.2 million compared to the three months ended June 30, 2018, primarily the result of decreased loan servicing rights related to the pay-downs of loans being serviced.
Non-interest income for the three months ended September 30, 2018 increased $0.1 million, or 3.4%, to $2.2 million compared to $2.1 million for the three months ended September 30, 2017. For the nine months ended September 30, 2018, non-interest income increased $0.9 million, or 15.1%, to $6.5 million from the nine months ended September 30, 2017. Both the quarterly and year-to-date increases are directly related to increases in loan servicing fees which was the result of higher volumes of loans being serviced.
Non-interest expense for the three months ended September 30, 2018 increased by $0.1 million, or 1.2%, to $7.0 million compared to the three months ended June 30, 2018, primarily due to a one time employment contract payment of $0.2 million which was partially offset by fewer OREO writedowns and expenses.
Non-interest expense for the quarter ended September 30, 2018 increased $0.7 million, or 11.6%, to $7.0 million from $6.3 million for the quarter ended September 30, 2017. For the nine months ended September 30, 2018, non-interest expense increased $1.9 million, or 10.2%, to $20.7 million compared to the nine months ended September 30, 2017. These increases were primarily related to increases in employee compensation and benefits in connection with six new positions, which was partially offset by decreases in professional fees. In addition, increased occupancy and information processing expenses are directly related to the purchase of our new corporate headquarters in 2018.
Asset Quality
Non-performing assets as a percent of total assets increased to 2.36% at September 30, 2018, from 2.30% at June 30, 2018 and 1.43% at September 30, 2017. At September 30, 2018, non-performing assets were $35.7 million, up from $34.9 million at June 30, 2018 and $19.4 million at September 30, 2017. During the third quarter of 2018, non-performing loans increased $1.6 million due to two agricultural relationships and two commercial relationships being put on non-accrual status. Total impairment on these non-performing loans totaled $99,000 and was included in the allowance for loan losses. One property was sold out of OREO and one Farm Service Agency guarantee was received resulting in a decrease of $0.8 million in OREO during the quarter ended September 30, 2018.
A provision for loan losses of $1.0 million was recorded for the three months ended September 30, 2018 compared to a provision of $0.5 million and $33 thousand for the three months ended June 30, 2018 and September 30, 2017, respectively. The increased provision is directly related to the $24.5 million and $48.2 million increase in substandard performing and substandard impaired loans from June 30, 2018 and September 30, 2017, respectively.
For the nine months ended September 30, 2018, the provision for loan losses was $1.6 million compared to $2.3 million for the nine months ended September 30, 2017. The decrease in provision expense year-over-year is primarily the result of a $1.2 million recovery that took place during the first quarter of 2018.
Conference Call
County Bancorp, Inc. will host an earnings call today at 3:00 p.m., CDT; conducted by Mr. Schneider and Glen L. Stiteley, CFO. Shareholders, analysts, and other interested parties are invited to join the call via telephone by dialing (888) 317-6016 or visiting County’s website at http://www.investorscommunitybank.com and then clicking on the link “Investor Relations.” 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 October 22, 2019, by visiting the Company’s website at http://www.investorscommunitybank.com and clicking on the link “Investor Relations.”
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) | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | |||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||
| Period-End Balance Sheet: | ||||||||||||||||||||
| Assets | ||||||||||||||||||||
| Cash and cash equivalents | $ | 49,996 | $ | 81,044 | $ | 90,676 | $ | 66,771 | $ | 71,795 | ||||||||||
| Securities available for sale, at fair value | 190,185 | 187,505 | 141,360 | 126,030 | 107,242 | |||||||||||||||
| Loans held for sale | 13,770 | 11,468 | 6,407 | 6,575 | 2,054 | |||||||||||||||
| Agricultural loans | 714,310 | 702,426 | 698,106 | 686,430 | 675,856 | |||||||||||||||
| Commercial loans | 417,146 | 407,609 | 406,096 | 407,036 | 397,989 | |||||||||||||||
| Multi-family real estate loans | 66,403 | 65,713 | 54,514 | 49,133 | 45,943 | |||||||||||||||
| Residential real estate loans | 4,965 | 5,437 | 5,512 | 6,005 | 6,584 | |||||||||||||||
| Installment and consumer other | 113 | 339 | 297 | 347 | 229 | |||||||||||||||
| Total loans | 1,202,937 | 1,181,524 | 1,164,525 | 1,148,951 | 1,126,601 | |||||||||||||||
| Allowance for loan losses | (16,143 | ) | (15,129 | ) | (14,612 | ) | (13,247 | ) | (13,625 | ) | ||||||||||
| Net loans | 1,186,794 | 1,166,395 | 1,149,913 | 1,135,704 | 1,112,976 | |||||||||||||||
| Other assets | 74,223 | 72,465 | 71,901 | 61,965 | 65,258 | |||||||||||||||
| Total Assets | $ | 1,514,968 | $ | 1,518,877 | $ | 1,460,257 | $ | 1,397,045 | $ | 1,359,325 | ||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Demand deposits | $ | 103,862 | $ | 95,459 | $ | 101,167 | $ | 125,584 | $ | 118,815 | ||||||||||
| NOW accounts and interest checking | 46,811 | 51,674 | 48,212 | 51,613 | 46,178 | |||||||||||||||
| Savings | 6,616 | 6,833 | 6,189 | 6,751 | 6,402 | |||||||||||||||
| Money market accounts | 208,233 | 204,332 | 199,834 | 199,118 | 169,612 | |||||||||||||||
| Time deposits | 352,531 | 344,619 | 314,766 | 301,760 | 297,617 | |||||||||||||||
| Brokered deposits | 317,291 | 323,561 | 319,692 | 282,616 | 281,205 | |||||||||||||||
| National time deposits | 173,440 | 183,953 | 182,530 | 142,635 | 146,265 | |||||||||||||||
| Total deposits | 1,208,784 | 1,210,431 | 1,172,390 | 1,110,077 | 1,066,094 | |||||||||||||||
| FHLB advances | 102,400 | 108,200 | 120,500 | 121,500 | 128,300 | |||||||||||||||
| Subordinated debentures | 44,663 | 44,725 | 15,540 | 15,523 | 15,506 | |||||||||||||||
| Other liabilities | 11,134 | 9,439 | 9,013 | 8,959 | 9,696 | |||||||||||||||
| Total Liabilities | 1,366,981 | 1,372,795 | 1,317,443 | 1,256,059 | 1,219,596 | |||||||||||||||
| Shareholders' equity | 147,987 | 146,082 | 142,814 | 140,986 | 139,729 | |||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 1,514,968 | $ | 1,518,877 | $ | 1,460,257 | $ | 1,397,045 | $ | 1,359,325 | ||||||||||
| Stock Price Information: | ||||||||||||||||||||
| High - Year-to-date | $ | 33.76 | $ | 33.76 | $ | 33.76 | $ | 35.89 | $ | 35.89 | ||||||||||
| Low - Year-to-date | $ | 24.29 | $ | 25.72 | $ | 26.61 | $ | 22.73 | $ | 22.73 | ||||||||||
| Market price - Quarter-end | $ | 25.10 | $ | 27.50 | $ | 29.21 | $ | 29.76 | $ | 30.05 | ||||||||||
| Book value per share | $ | 20.91 | $ | 20.63 | $ | 20.17 | $ | 19.93 | $ | 19.79 | ||||||||||
| Tangible book value per share (1) | $ | 20.07 | $ | 19.77 | $ | 19.29 | $ | 19.04 | $ | 18.87 | ||||||||||
| Average diluted shares of common stock quarter-to-date | 6,757,945 | 6,769,936 | 6,768,965 | 6,768,939 | 6,757,648 | |||||||||||||||
| Common shares outstanding | 6,694,230 | 6,693,447 | 6,684,923 | 6,673,381 | 6,657,601 | |||||||||||||||
(1) This is a non-GAAP financial measure. A reconciliation to GAAP is included below.
| September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Loans by risk category: | ||||||||||||||||||||
| Sound/Acceptable/Satisfactory/ Low Satisfactory | $ | 901,643 | $ | 896,509 | $ | 891,062 | $ | 873,801 | $ | 871,513 | ||||||||||
| Watch | 171,890 | 186,399 | 185,179 | 183,022 | 161,425 | |||||||||||||||
| Special Mention | 11,036 | 4,783 | 5,636 | 8,902 | 23,456 | |||||||||||||||
| Substandard Performing | 61,851 | 46,751 | 45,261 | 50,224 | 56,247 | |||||||||||||||
| Substandard Impaired | 56,517 | 47,082 | 37,387 | 33,002 | 13,960 | |||||||||||||||
| Total loans | $ | 1,202,937 | $ | 1,181,524 | $ | 1,164,525 | $ | 1,148,951 | $ | 1,126,601 | ||||||||||
| Non-Performing Assets: | ||||||||||||||||||||
| Nonaccrual loans | $ | 27,881 | $ | 26,305 | $ | 17,746 | $ | 11,559 | $ | 12,862 | ||||||||||
| Other real estate owned (2) | 7,851 | 8,607 | 8,982 | 4,565 | 6,576 | |||||||||||||||
| Total non-performing assets | $ | 35,732 | $ | 34,912 | $ | 26,728 | $ | 16,124 | $ | 19,438 | ||||||||||
| Restructured loans not on nonaccrual | $ | 11,863 | $ | 11,173 | $ | 10,488 | $ | 9,019 | $ | 8,087 | ||||||||||
| Non-performing assets as a % of total assets | 2.36 | % | 2.30 | % | 1.83 | % | 1.15 | % | 1.43 | % | ||||||||||
| Allowance for loan losses as a % of nonaccrual loans | 57.90 | % | 57.51 | % | 82.34 | % | 114.60 | % | 105.93 | % | ||||||||||
| Allowance for loan losses as a % of total loans | 1.34 | % | 1.28 | % | 1.25 | % | 1.15 | % | 1.21 | % | ||||||||||
| Net charge-offs (recoveries) quarter-to-date | $ | (21 | ) | $ | 16 | $ | (1,268 | ) | $ | 390 | $ | (89 | ) | |||||||
| Provision for loan loss quarter-to-date | $ | 993 | $ | 533 | $ | 97 | $ | 12 | $ | 33 | ||||||||||
(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 | ||||||||||||||||||||
| September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | ||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||
| Selected Income Statement Data: | ||||||||||||||||||||
| Interest and Dividend Income | ||||||||||||||||||||
| Loans, including fees | $ | 15,113 | $ | 14,366 | $ | 13,691 | $ | 13,443 | $ | 13,070 | ||||||||||
| Taxable securities | 945 | 982 | 632 | 462 | 461 | |||||||||||||||
| Tax-exempt securities | 344 | 14 | 157 | 88 | 82 | |||||||||||||||
| Federal funds sold and other | 249 | 401 | 213 | 256 | 102 | |||||||||||||||
| Total interest and dividend income | 16,651 | 15,763 | 14,693 | 14,249 | 13,715 | |||||||||||||||
| Interest Expense | ||||||||||||||||||||
| Deposits | 4,980 | 4,600 | 3,796 | 3,464 | 3,108 | |||||||||||||||
| FHLB advances and other borrowed funds | 411 | 487 | 484 | 481 | 511 | |||||||||||||||
| Subordinated debentures | 656 | 338 | 143 | 135 | 135 | |||||||||||||||
| Total interest expense | 6,047 | 5,425 | 4,423 | 4,080 | 3,754 | |||||||||||||||
| Net interest income | 10,604 | 10,338 | 10,270 | 10,169 | 9,961 | |||||||||||||||
| Provision for loan losses | 993 | 533 | 97 | 12 | 33 | |||||||||||||||
| Net interest income after provision for loan losses | 9,611 | 9,805 | 10,173 | 10,157 | 9,928 | |||||||||||||||
| Non-Interest Income | ||||||||||||||||||||
| Services charges | 394 | 445 | 365 | 332 | 350 | |||||||||||||||
| Gain on sale of loans, net | 41 | 45 | 32 | 22 | 47 | |||||||||||||||
| Loan servicing fees | 1,521 | 1,486 | 1,452 | 1,483 | 1,469 | |||||||||||||||
| Loan servicing rights | (46 | ) | 127 | 10 | (37 | ) | 94 | |||||||||||||
| Income on OREO | 96 | 45 | 32 | 16 | 20 | |||||||||||||||
| Other | 151 | 168 | 149 | 178 | 107 | |||||||||||||||
| Total non-interest income | 2,157 | 2,316 | 2,040 | 1,994 | 2,087 | |||||||||||||||
| Non-Interest Expense | ||||||||||||||||||||
| Employee compensation and benefits | 4,394 | 4,114 | 4,218 | 3,702 | 3,845 | |||||||||||||||
| Occupancy | 332 | 278 | 204 | 135 | 162 | |||||||||||||||
| Information processing | 529 | 529 | 465 | 423 | 450 | |||||||||||||||
| Professional fees | 351 | 359 | 315 | 406 | 414 | |||||||||||||||
| Business development | 258 | 260 | 299 | 210 | 275 | |||||||||||||||
| OREO expenses | 46 | 152 | 140 | 17 | 50 | |||||||||||||||
| Writedown of OREO | 81 | 104 | - | 820 | 8 | |||||||||||||||
| Net loss (gain) on OREO | (28 | ) | (149 | ) | - | 10 | 39 | |||||||||||||
| Depreciation and amortization | 302 | 324 | 314 | 319 | 323 | |||||||||||||||
| Other | 758 | 966 | 830 | 1,123 | 725 | |||||||||||||||
| Total non-interest expense | 7,023 | 6,937 | 6,785 | 7,165 | 6,291 | |||||||||||||||
| Income before income taxes | 4,745 | 5,184 | 5,428 | 4,986 | 5,724 | |||||||||||||||
| Income tax expense | 1,228 | 1,334 | 1,374 | 2,855 | 2,120 | |||||||||||||||
| NET INCOME | $ | 3,517 | $ | 3,850 | $ | 4,054 | $ | 2,131 | $ | 3,604 | ||||||||||
| Other Data: | ||||||||||||||||||||
| Return on average assets | 0.94 | % | 1.04 | % | 1.15 | % | 0.62 | % | 1.11 | % | ||||||||||
| Return on average shareholders' equity | 9.51 | % | 10.63 | % | 11.62 | % | 6.05 | % | 10.36 | % | ||||||||||
| Return on average common shareholders' equity (1) | 9.75 | % | 10.96 | % | 12.04 | % | 6.12 | % | 10.72 | % | ||||||||||
| Efficiency ratio (1) | 54.62 | % | 55.18 | % | 55.12 | % | 52.11 | % | 51.83 | % | ||||||||||
| Tangible common equity to tangible assets (1) | 8.90 | % | 8.75 | % | 8.87 | % | 9.13 | % | 9.29 | % | ||||||||||
| Per Common Share Data: | ||||||||||||||||||||
| Basic | $ | 0.51 | $ | 0.56 | $ | 0.59 | $ | 0.31 | $ | 0.53 | ||||||||||
| Diluted | $ | 0.50 | $ | 0.55 | $ | 0.58 | $ | 0.30 | $ | 0.52 | ||||||||||
| Dividends declared | $ | 0.07 | $ | 0.07 | $ | 0.07 | $ | 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: | September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 2017 | |||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||
| Return on average common shareholders' equity reconciliation: | ||||||||||||||||||||
| Return on average shareholders' equity | 9.51 | % | 10.63 | % | 11.62 | % | 6.05 | % | 10.36 | % | ||||||||||
| Effect of excluding average preferred shareholders' equity | 0.24 | % | 0.33 | % | 0.42 | % | 0.07 | % | 0.36 | % | ||||||||||
| Return on average common shareholders' equity | 9.75 | % | 10.96 | % | 12.04 | % | 6.12 | % | 10.72 | % | ||||||||||
| Efficiency ratio GAAP to non-GAAP reconciliation: | ||||||||||||||||||||
| Non-interest expense | $ | 7,023 | $ | 6,937 | $ | 6,785 | $ | 7,165 | $ | 6,291 | ||||||||||
| Less: net gain (loss) on sales and write- downs of OREO | (53 | ) | 45 | - | (830 | ) | (47 | ) | ||||||||||||
| Adjusted non-interest expense (non-GAAP) | $ | 6,970 | $ | 6,982 | $ | 6,785 | $ | 6,335 | $ | 6,244 | ||||||||||
| Net interest income | $ | 10,604 | $ | 10,338 | $ | 10,270 | $ | 10,169 | $ | 9,961 | ||||||||||
| Non-interest income | 2,157 | 2,316 | 2,040 | 1,994 | 2,087 | |||||||||||||||
| Less: net gain on sales of securities | - | - | - | (6 | ) | - | ||||||||||||||
| Operating revenue | $ | 12,761 | $ | 12,654 | $ | 12,310 | $ | 12,157 | $ | 12,048 | ||||||||||
| Efficiency ratio | 54.62 | % | 55.18 | % | 55.12 | % | 52.11 | % | 51.83 | % | ||||||||||
| September 30, 2018 | June 30, 2018 | March 31, 2018 | December 31, 2017 | September 30, 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 | $ | 139,987 | $ | 138,082 | $ | 134,814 | $ | 132,986 | $ | 131,729 | ||||||||||
| Less: Goodwill | 5,038 | 5,038 | 5,038 | 5,038 | 5,038 | |||||||||||||||
| Less: Core deposit intangible, net of amortization | 603 | 701 | 806 | 919 | 1,038 | |||||||||||||||
| Tangible common equity (non-GAAP) | $ | 134,346 | $ | 132,343 | $ | 128,970 | $ | 127,029 | $ | 125,653 | ||||||||||
| Common shares outstanding | 6,694,230 | 6,693,447 | 6,684,923 | 6,673,381 | 6,657,601 | |||||||||||||||
| Tangible book value per share | $ | 20.07 | $ | 19.77 | $ | 19.29 | $ | 19.04 | $ | 18.87 | ||||||||||
| Total assets | $ | 1,514,968 | $ | 1,518,877 | $ | 1,460,257 | $ | 1,397,045 | $ | 1,359,325 | ||||||||||
| Less: Goodwill | 5,038 | 5,038 | 5,038 | 5,038 | 5,038 | |||||||||||||||
| Less: Core deposit intangible, net of amortization | 603 | 701 | 806 | 919 | 1,038 | |||||||||||||||
| Tangible assets (non-GAAP) | $ | 1,509,327 | $ | 1,513,138 | $ | 1,454,413 | $ | 1,391,088 | $ | 1,353,249 | ||||||||||
| Tangible common equity to tangible assets | 8.90 | % | 8.75 | % | 8.87 | % | 9.13 | % | 9.29 | % | ||||||||||
| For the Three Months Ended | ||||||||||||||||||||||||
| September 30, 2018 | September 30, 2017 | |||||||||||||||||||||||
| Average Balance (1) | Income/ Expense | Yields/ Rates | Average Balance (1) | Income/ Expense | Yields/ Rates | |||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Investment securities | $ | 189,448 | $ | 1,289 | 2.72 | % | $ | 111,306 | $ | 543 | 1.95 | % | ||||||||||||
| Loans (2) | 1,204,122 | 15,113 | 5.02 | % | 1,104,259 | 13,070 | 4.73 | % | ||||||||||||||||
| Interest bearing deposits due from other banks | 62,560 | 249 | 1.59 | % | 41,187 | 102 | 0.99 | % | ||||||||||||||||
| Total interest-earning assets | $ | 1,456,130 | $ | 16,651 | 4.57 | % | $ | 1,256,752 | $ | 13,715 | 4.37 | % | ||||||||||||
| Allowance for loan losses | (15,445 | ) | (13,517 | ) | ||||||||||||||||||||
| Other assets | 58,921 | 59,186 | ||||||||||||||||||||||
| Total assets | $ | 1,499,606 | $ | 1,302,421 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Savings, NOW, money market, interest checking | $ | 276,468 | 907 | 1.31 | % | $ | 224,819 | 387 | 0.69 | % | ||||||||||||||
| Time deposits | 830,168 | 4,073 | 1.96 | % | 679,324 | 2,721 | 1.60 | % | ||||||||||||||||
| Total interest-bearing deposits | $ | 1,106,636 | $ | 4,980 | 1.80 | % | $ | 904,143 | $ | 3,108 | 1.38 | % | ||||||||||||
| Other borrowings | 839 | 10 | 4.61 | % | 1,384 | 20 | 5.82 | % | ||||||||||||||||
| FHLB advances | 92,443 | 401 | 1.74 | % | 136,561 | 491 | 1.44 | % | ||||||||||||||||
| Junior subordinated debentures | 44,659 | 656 | 5.88 | % | 15,506 | 135 | 3.48 | % | ||||||||||||||||
| Total interest-bearing liabilities | $ | 1,244,577 | $ | 6,047 | 1.94 | % | $ | 1,057,594 | $ | 3,754 | 1.42 | % | ||||||||||||
| Non-interest-bearing deposits | 97,947 | 96,717 | ||||||||||||||||||||||
| Other liabilities | 9,136 | 8,995 | ||||||||||||||||||||||
| Total liabilities | $ | 1,351,660 | $ | 1,163,306 | ||||||||||||||||||||
| Shareholders' equity | 147,946 | 139,115 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 1,499,606 | $ | 1,302,421 | ||||||||||||||||||||
| Net interest income | $ | 10,604 | $ | 9,961 | ||||||||||||||||||||
| Interest rate spread (3) | 2.63 | % | 2.95 | % | ||||||||||||||||||||
| Net interest margin (4) | 2.89 | % | 3.17 | % | ||||||||||||||||||||
| Ratio of interest-earning assets to interest- bearing liabilities | 1.17 | 1.19 | ||||||||||||||||||||||
(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 Nine Months Ended | ||||||||||||||||||||||||
| September 30, 2018 | September 30, 2017 | |||||||||||||||||||||||
| Average Balance (1) | Income/ Expense | Yields/ Rates | Average Balance (1) | Income/ Expense | Yields/ Rates | |||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Investment securities | $ | 161,869 | $ | 3,074 | 2.53 | % | $ | 114,528 | $ | 1,608 | 1.87 | % | ||||||||||||
| Loans (2) | 1,188,541 | 43,170 | 4.84 | % | 1,070,840 | 36,952 | 4.60 | % | ||||||||||||||||
| Interest bearing deposits due from other banks | 77,190 | 863 | 1.49 | % | 40,800 | 243 | 0.80 | % | ||||||||||||||||
| Total interest-earning assets | $ | 1,427,600 | $ | 47,107 | 4.40 | % | $ | 1,226,168 | $ | 38,803 | 4.22 | % | ||||||||||||
| Allowance for loan losses | (14,712 | ) | (13,575 | ) | ||||||||||||||||||||
| Other assets | 55,963 | 54,906 | ||||||||||||||||||||||
| Total assets | $ | 1,468,851 | $ | 1,267,499 | ||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Savings, NOW, money market, interest checking | $ | 279,820 | 2,355 | 1.12 | % | $ | 239,365 | 1,113 | 0.62 | % | ||||||||||||||
| Time deposits | 797,459 | 11,021 | 1.84 | % | 644,472 | 7,238 | 1.50 | % | ||||||||||||||||
| Total interest-bearing deposits | $ | 1,077,279 | $ | 13,376 | 1.66 | % | $ | 883,837 | $ | 8,351 | 1.26 | % | ||||||||||||
| Other borrowings | 1,094 | 40 | 4.86 | % | 1,618 | 71 | 5.84 | % | ||||||||||||||||
| FHLB advances | 110,009 | 1,342 | 1.63 | % | 128,093 | 1,285 | 1.34 | % | ||||||||||||||||
| Junior subordinated debentures | 28,682 | 1,137 | 5.29 | % | 15,482 | 380 | 3.27 | % | ||||||||||||||||
| Total interest-bearing liabilities | $ | 1,217,064 | $ | 15,895 | 1.74 | % | $ | 1,029,030 | $ | 10,087 | 1.30 | % | ||||||||||||
| Non-interest-bearing deposits | 98,393 | 93,323 | ||||||||||||||||||||||
| Other liabilities | 8,415 | 8,665 | ||||||||||||||||||||||
| Total liabilities | $ | 1,323,872 | $ | 1,131,018 | ||||||||||||||||||||
| Shareholders' equity | 144,979 | 136,481 | ||||||||||||||||||||||
| Total liabilities and equity | $ | 1,468,851 | $ | 1,267,499 | ||||||||||||||||||||
| Net interest income | $ | 31,212 | $ | 28,716 | ||||||||||||||||||||
| Interest rate spread (3) | 2.66 | % | 2.92 | % | ||||||||||||||||||||
| Net interest margin (4) | 2.92 | % | 3.12 | % | ||||||||||||||||||||
| Ratio of interest-earning assets to interest- bearing liabilities | 1.17 | 1.19 | ||||||||||||||||||||||
(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.