Highlights

  • Net income of $2.8 million for the fourth quarter of 2018 and $14.3 million for the year 2018
  • Diluted earnings per share of $0.40 for the fourth quarter of 2018 and $2.04 for the year 2018
  • Book value per share of $21.48 as of December 31, 2018, an increase of $1.55, or 7.8%, since December 31, 2017
  • Gross loans serviced increased $20.7 million during the fourth quarter of 2018, an increase of 1.1%, and $119.4 million during the year 2018, an increase of 6.8%
  • Core deposit growth of $36.3 million during the fourth quarter of 2018, an increase of 5.1%, and $69.3 million during the year 2018, an increase of 10.1%

MANITOWOC, Wis., Feb. 11, 2019 (GLOBE NEWSWIRE) -- County Bancorp, Inc. (Nasdaq: ICBK), the holding company of Investors Community Bank (the “Bank”), an agricultural and commercial community bank headquartered in Manitowoc, Wisconsin, reported net income of $2.8 million, or $0.41 diluted earnings per share, for the fourth quarter of 2018, compared to net income of $3.5 million, or $0.50 diluted earnings per share, for the third quarter of 2018 and $2.1 million, or $0.30 diluted earnings per share, for the fourth quarter of 2017.  Net income for the year ended December 31, 2018 was $14.3 million, or $2.04 diluted earnings per share, compared to $10.4 million for the year ended December 31, 2017, or $1.49 diluted earnings per share, an increase of 36.7%.  This represents a return on average assets of 0.96% for the year ended December 31, 2018, compared to 0.80% for the year ended December 31, 2017.

“We are very pleased that we continue to produce solid year-over-year earnings, even with the challenges in the dairy sector,” stated Tim Schneider, President of County Bancorp, Inc. and CEO of the Bank. 

“With the dairy challenges and a flattening to inverted yield curve, we are going to take 2019 to manage our growth and work on the right side of our balance sheet.  We plan to reduce our overall credit exposure during the first half of 2019 and continue to focus on core deposit generation.  This will allow us to work aggressively to reduce our wholesale funding during 2019.  We anticipate another challenging year on the credit side with our classified assets continuing to increase.  We still believe that our classified asset levels are protected overall by the use of Farm Service Agency guarantees on many of our agricultural credits.”

Loans and Total Assets

Total assets at December 31, 2018 were $1.5 billion, an increase of $5.9 million, or 0.4%, and $123.8 million, or 8.9%, over total assets as of September 30, 2018 and December 31, 2017, respectively.  Total loans were $1.2 billion at December 31, 2018, which represents a $58.3 million, or 5.1%, increase over total loans at December 31, 2017.  Loan growth in the fourth quarter of 2018 was $4.4 million, an increase of 0.4%, from September 30, 2018.

In addition to on-balance sheet loan growth, participated loans that we continue to service totaled $661.3 million at December 31, 2018, which is an increase of $60.1 million, or 10.1%, over participated loans that we continued to service at December 31, 2017.  During the fourth quarter of 2018, participated loans that we continue to service increased $16.4 million, or 2.5%, over loans sold and serviced as of September 30, 2018.

Deposits

Total deposits at December 31, 2018 were $1.2 billion, an increase of $14.6 million, or 1.2%, and $113.3 million, or 10.2%, over total deposits as of September 30, 2018 and December 31, 2017, respectively.  Core deposit (demand deposits, money market accounts, and certificates of deposit) increased $69.3 million, or 10.1%, since December 31, 2017, and increased $36.3, or 5.1%, in the fourth quarter 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 December 31, 2018 were $468.9 million, which was a decrease of $21.8 million, or 4.4%, from September 30, 2018, but was an increase of $43.9 million, or 10.3%, from December 31, 2017.

Due to our deposit growth in 2018, we have been able to decrease our FHLB borrowings by $13.0 million, or 12.7%, since September 30, 2018, and by $32.1 million, or 26.4%, since December 31, 2017. 

Net Interest Income and Margin

Net interest income improved to $10.7 million for the three months ended December 31, 2018, which was a $0.1 million, or 1.3%, and $0.5 million, or 5.5%, increase from the three months ended September 30, 2018 and the three months ended December 31, 2017, respectively, primarily due to growth in loans and securities available for sale.

For the year ended December 31, 2018, net interest income improved 8.0% to $42.0 million from $38.9 million for the year ended December 31, 2017.  The increase was primarily due to loan growth and purchases of securities available for sale, which was partially offset by interest expense on subordinated debt issued in 2018 and increased rates paid on deposit accounts.

Net interest margin was 2.91% for the three months ended December 31, 2018, which was an increase from 2.89% for the three months ended September 30, 2018, and a decrease from 3.06% for the three months ended December 31, 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.  Year-over-year fourth quarter net interest margin decreased by fifteen 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 and a forty-eight basis point increase in cost of funds, which was partially offset by a forty basis point improvement in loan yields.

For the year ended December 31, 2018, net interest margin decreased to 2.91% from 3.11% for the year ended December 31, 2017.  Yields on interest earning assets increased by 0.22% between the two years while the cost of interest bearing liabilities increased by 0.47% between the same periods. 

Non-Interest Income and Expense

Non-interest income for the three months ended December 31, 2018 increased by $0.2 million, or 7.6%, to $2.3 million compared to the three months ended September 30, 2018, primarily the result of increased loan servicing rights and fees related to increased volume in loans being serviced.

Non-interest income for the three months ended December 31, 2018 increased $0.3 million, or 16.3%, to $2.3 million compared to $2.0 million for the three months ended December 31, 2017.  For the year ended December 31, 2018, non-interest income increased $1.2 million, or 15.4%, to $8.8 million from the year ended December 31, 2017.  Both the quarterly and annual 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 December 31, 2018 increased by $0.5 million, or 7.3%, to $7.5 million compared to the three months ended September 30, 2018, and increased $0.4 million, or 5.2% compared to the three months ended December 31, 2017.  The increase was primarily due $0.7 million write-downs on two OREO properties, which was partially offset by a decrease in employee compensation in benefits related to a one-time employment contract payment of $0.2 million that took place in the third quarter.

For the year ended December 31, 2018, non-interest expense increased $2.3 million, or 8.8%, to $28.3 million compared to the year ended December 31, 2017.  The increase is primarily made up of a $1.3 million related to increases in employee compensation and benefits in connection with eight new positions, a $0.4 million increase in occupancy expenses related to relocating our corporate headquarters, and a $0.5 million increase in information processing related to technology investments and implementations made throughout 2018. 

The effective tax rate for the year ended December 31, 2018 was 26.2% compared to 42.8% for the year ended December 31, 2017.  The decline in effective tax rate resulted in a $2.7 million decrease in income tax expense year-over-year, and was the result of the tax reform that was enacted on December 22, 2017.

Asset Quality

Non-performing assets as a percent of total assets decreased to 1.94% at December 31, 2018, from 2.36% at September 30, 2018, but increased from 1.15% at December 31, 2017.  At December 31, 2018, non-performing assets were $29.6 million, down from $35.7 million at September 30, 2018, but up from $16.1 million at December 31, 2017.  During the fourth quarter of 2018, non-performing loans decreased $4.9 million due $1.2 million in charge-offs and $3.7 million in loan payments and collection of collateral.  During the fourth quarter, two OREO properties were written-down and one Farm Service Agency guarantee payment was received, resulting in a decrease of $1.7 million in OREO during the quarter ended December 31, 2018.  This decrease was partially offset by the inclusion of $0.4 million of Bank-owned property adjacent to our Stevens Point branch that is now considered classified as OREO due to the Bank’s five-year holding period.

Adverse classified asset ratio (a non-GAAP measure, as calculated on page 10) increased to 57.12% at December 31, 2018 from 51.89% and 51.57% at September 30, 2018 and December 31, 2017, respectively, as the result of the strained agricultural economy and the four-year sustained low prices of class III milk.

A provision for loan losses of $1.6 million was recorded for the three months ended December 31, 2018 compared to a provision of $0.9 million and $12 thousand for the three months ended September 30, 2018 and December 31, 2017, respectively.  The increased provision is directly related to an increase in historical loss history from the $1.2 million charge-offs that occurred during the fourth quarter.

For the year ended December 31, 2018, the provision for loan losses was $3.2 million compared to $2.3 million for the year ended December 31, 2017.  The increase in provision expense year-over-year was primarily the result of an increase of substandard loans totaling $37.7 million between December 31, 2017 and December 31, 2018.

Conference Call

County Bancorp, Inc. will host an earnings call on today, February 11, 2019, at 11:30 a.m., CST, conducted by Tim Schneider, President, 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 Bancorp’s website at http://www.investorscommunitybank.com and then clicking on the link “Investor Relations.”  Investors should visit County Bancorp’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 February 11, 2020, by visiting the County Bancorp’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)
 December
31,
2018
  September
30,
2018
  June 30,
2018
  March 31,
2018
  December
31,
2017
 
    
  (dollars in thousands, except per share data) 
Period-End Balance Sheet:                    
  Assets                    
  Cash and cash equivalents $61,087  $49,996  $81,044  $90,676  $66,771 
  Securities available for sale, at fair value  195,945   190,185   187,505   141,360   126,030 
  Loans held for sale  2,949   13,770   11,468   6,407   6,575 
  Agricultural loans  724,508   714,310   702,426   698,106   686,430 
  Commercial loans  415,672   417,146   407,609   406,096   407,036 
  Multi-family real estate loans  62,321   66,403   65,713   54,514   49,133 
  Residential real estate loans  4,522   4,965   5,437   5,512   6,005 
  Installment and consumer other  272   113   339   297   347 
  Total loans  1,207,295   1,202,937   1,181,524   1,164,525   1,148,951 
  Allowance for loan losses  (16,505)  (16,143)  (15,129)  (14,612)  (13,247)
  Net loans  1,190,790   1,186,794   1,166,395   1,149,913   1,135,704 
  Other assets  70,057   74,223   72,465   71,901   61,965 
  Total Assets $1,520,828  $1,514,968  $1,518,877  $1,460,257  $1,397,045 
                     
  Liabilities and Shareholders' Equity                    
  Demand deposits $121,436  $103,862  $95,459  $101,167  $125,584 
  NOW accounts and interest checking  51,779   46,811   51,674   48,212   51,613 
  Savings  5,770   6,616   6,833   6,189   6,751 
  Money market accounts  218,929   208,233   204,332   199,834   199,118 
  Time deposits  356,484   352,531   344,619   314,766   302,004 
  Brokered deposits  308,504   317,291   323,561   319,692   282,616 
  National time deposits  160,445   173,440   183,953   182,530   142,391 
  Total deposits  1,223,347   1,208,784   1,210,431   1,172,390   1,110,077 
  FHLB advances  89,400   102,400   108,200   120,500   121,500 
  Subordinated debentures  44,703   44,663   44,725   15,540   15,523 
  Other liabilities  11,293   11,134   9,439   9,013   8,959 
  Total Liabilities  1,368,743   1,366,981   1,372,795   1,317,443   1,256,059 
                     
  Shareholders' equity  152,085   147,987   146,082   142,814   140,986 
  Total Liabilities and Shareholders'
  Equity
 $1,520,828  $1,514,968  $1,518,877  $1,460,257  $1,397,045 
                     
Stock Price Information:                    
  High - Quarter-to-date $26.00  $28.20  $29.26  $33.76  $33.94 
  Low - Quarter-to-date $17.37  $24.29  $25.72  $26.61  $27.77 
  Market price - Quarter-end $17.37  $25.10  $27.50  $29.21  $29.76 
  Book value per share $21.48  $20.91  $20.63  $20.17  $19.93 
  Tangible book value per share (1) $20.65  $20.07  $19.77  $19.29  $19.04 
  Common shares outstanding  6,709,480   6,694,230   6,693,447   6,684,923   6,673,381 

(1) This is a non-GAAP financial measure.  A reconciliation to GAAP is included below.

  December
31,
2018
  September
30,
2018
  June 30,
2018
  March 31,
2018
  December
31,
2017
 
    
  (dollars in thousands) 
Loans by risk category:                    
  Sound/Acceptable/Satisfactory/
  Low Satisfactory
 $908,172  $901,643  $896,509  $891,062  $873,801 
  Watch  171,670   171,890   186,399   185,179   183,022 
  Special Mention  6,566   11,036   4,783   5,636   8,902 
  Substandard Performing  65,501   61,851   46,751   45,261   50,224 
  Substandard Impaired  55,386   56,517   47,082   37,387   33,002 
  Total loans  1,207,295   1,202,937   1,181,524   1,164,525   1,148,951 
  Loan sold with servicing retained  661,257   644,879   628,435   611,358   600,666 
  Total loans and loans sold with
  servicing retained
 $1,868,552  $1,847,816  $1,809,959  $1,775,883  $1,749,617 
                     
Non-Performing Assets:                    
  Nonaccrual loans $22,983  $27,881  $26,305  $17,746  $11,559 
  Other real estate owned (2)  6,568   7,851   8,607   8,982   4,565 
  Total non-performing assets $29,551  $35,732  $34,912  $26,728  $16,124 
                     
Performing TDRs not on nonaccrual $18,258  $11,863  $11,173  $10,488  $9,019 
                     
Non-performing assets as a % of total loans  2.45%  2.97%  2.95%  2.30%  1.40%
Non-performing assets as a % of total assets  1.94%  2.36%  2.30%  1.83%  1.15%
Adverse classified asset ratio (1)  57.12%  51.89%  47.34%  53.44%  51.57%
Allowance for loan losses as a % of
  nonaccrual loans
  71.81%  57.90%  57.51%  82.34%  114.60%
Allowance for loan losses as a % of total
  loans
  1.37%  1.34%  1.28%  1.25%  1.15%
Net charge-offs (recoveries) quarter-to-date $1,210  $(21) $16  $(1,268) $390 
Provision for loan loss quarter-to-date $1,572  $993  $533  $97  $12 

(1)This is a non-GAAP financial measure.  A reconciliation to GAAP is included below.

(2)For the quarters ending December 31, 2017 through September 30, 2018, does not include $0.4 million of bank property transferred from premises and equipment, which is not considered a non-performing asset.  As of December 31, 2018, that bank property is considered classified due to the length of the holding period.

  For the Three Months Ended  For the Year Ended 
  December
31,
2018
  September
30,
2018
  June 30,
2018
  March 31,
2018
  December
31,
2017
  December
31,
2018
  December
31,
2017
 
    
  (dollars in thousands, except per share data) 
Selected Income Statement Data:                            
Interest and Dividend Income                            
Loans, including fees $15,536  $15,113  $14,366  $13,691  $13,443  $58,706  $50,395 
Taxable securities  1,168   945   982   632   462   3,727   1,808 
Tax-exempt securities  183   344   14   157   88   698   350 
Federal funds sold and other  223   249   401   213   256   1,086   499 
Total interest and dividend
  income
  17,110   16,651   15,763   14,693   14,249   64,217   53,052 
                             
Interest Expense                            
Deposits  5,273   4,980   4,600   3,796   3,464   18,649   11,815 
FHLB advances and other borrowed
  funds
  427   411   487   484   481   1,809   1,837 
Subordinated debentures  667   656   338   143   135   1,804   515 
Total interest expense  6,367   6,047   5,425   4,423   4,080   22,262   14,167 
Net interest income  10,743   10,604   10,338   10,270   10,169   41,955   38,885 
Provision for loan losses  1,572   993   533   97   12   3,195   2,330 
Net interest income after provision
  for loan losses
  9,171   9,611   9,805   10,173   10,157   38,760   36,555 
                             
Non-Interest Income                            
Services charges  470   394   445   365   332   1,674   1,406 
Gain on sale of loans, net  54   41   45   32   22   172   118 
Loan servicing fees  1,553   1,521   1,486   1,452   1,483   6,012   5,799 
Loan servicing rights  7   (46)  127   10   (37)  98   (315)
Income on OREO  83   96   45   32   16   256   73 
Other  153   151   168   149   178   621   572 
Total non-interest income  2,320   2,157   2,316   2,040   1,994   8,833   7,653 
                             
Non-Interest Expense                            
Employee compensation and
  benefits
  4,059   4,394   4,114   4,218   3,702   16,785   15,437 
Occupancy  245   332   278   204   135   1,059   654 
Information processing  641   529   529   465   423   2,164   1,632 
Professional fees  497   351   359   315   406   1,522   1,657 
Business development  259   258   260   299   210   1,076   941 
OREO expenses  106   46   152   140   17   444   174 
Writedown of OREO  688   81   104   -   820   873   905 
Net loss (gain) on OREO  (54)  (28)  (149)  -   10   (231)  (353)
Depreciation and amortization  408   302   324   314   319   1,348   1,307 
Other  689   758   966   830   1,123   3,243   3,638 
Total non-interest expense  7,538   7,023   6,937   6,785   7,165   28,283   25,992 
  Income before income taxes  3,953   4,745   5,184   5,428   4,986   19,310   18,216 
  Income tax expense  1,123   1,228   1,334   1,374   2,855   5,059   7,791 
  NET INCOME $2,830  $3,517  $3,850  $4,054  $2,131  $14,251  $10,425 
                             
  Basic $0.41  $0.51  $0.56  $0.59  $0.31  $2.06  $1.52 
  Diluted $0.40  $0.50  $0.55  $0.58  $0.30  $2.04  $1.49 
  Dividends declared $0.07  $0.07  $0.07  $0.07  $0.06  $0.28  $0.24 


   For the Three Months Ended  For the Year Ended 
  December
31,
2018
  September
30,
2018
  June 30,
2018
  March 31,
2018
  December
31,
2017
  December
31,
2018
  December
31,
2017
 
    
  (dollars in thousands, except share data) 
Other Data:                            
  Return on average assets  0.75%  0.94%  1.04%  1.15%  0.62%  0.96%  0.80%
  Return on average shareholders'
  equity
  7.58%  9.51%  10.63%  11.62%  6.05%  9.50%  7.58%
  Return on average common
  shareholders' equity (1)
  7.70%  9.75%  10.96%  12.04%  6.12%  9.74%  7.77%
  Efficiency ratio (1)  52.85%  54.62%  55.18%  55.12%  52.11%  54.42%  54.63%
  Tangible common equity to
  tangible assets (1)
  9.14%  8.90%  8.75%  8.87%  9.13%  9.14%  9.13%
                             
Common Share Data:                            
  Net income from continuing
  operations
 $2,830  $3,517  $3,850  $4,054  $2,131  $14,251  $10,425 
  Less:  Preferred stock dividends  111   106   99   97   96   413   353 
  Income available to common
  shareholders
 $2,719  $3,411  $3,751  $3,957  $2,035  $13,838  $10,072 
                             
  Average number of common
  shares issued
  7,184,946   7,167,276   7,163,362   7,152,970   7,150,424   7,177,212   7,110,099 
  Less: Weighted average treasury
  shares
  443,694   443,140   442,102   439,833   437,901   442,206   433,976 
  Less: Weighted average non-
  vested restricted units
  awards
  28,701   29,537   30,692   34,976   41,217   30,955   40,740 
  Weighted average number of
  common shares outstanding
  6,712,551   6,694,599   6,690,568   6,678,161   6,671,306   6,704,051   6,635,383 
  Effect of dilutive options  45,116   63,346   79,368   90,804   97,633   68,876   111,463 
  Weighted average number of
  common shares outstanding
  used to calculate diluted
  earnings per common share
  6,757,667   6,757,945   6,769,936   6,768,965   6,768,939   6,772,927   6,746,846 

(1) This is a non-GAAP financial measure.  A reconciliation to GAAP is included below.

   For the Three Months Ended  For the Year Ended 
Non-GAAP Financial Measures: December
31,
2018
  September
30,
2018
  June 30,
2018
  March
31,
2018
  December
31,
2017
  December
31,
2018
  December
31,
2017
 
    
  (dollars in thousands) 
Return on average common
  shareholders' equity
  reconciliation:
                            
  Return on average shareholders'
  equity
  7.58%  9.51%  10.63%  11.62%  6.05%  9.50%  7.58%
  Effect of excluding average
  preferred shareholders'
  equity
  0.12%  0.24%  0.33%  0.42%  0.07%  0.24%  0.19%
  Return on average common
  shareholders' equity
  7.70%  9.75%  10.96%  12.04%  6.12%  9.74%  7.77%
                             
Efficiency ratio GAAP to non-GAAP
  reconciliation:
                            
  Non-interest expense $7,538  $7,023  $6,937  $6,785  $7,165  $28,283  $25,992 
  Less: net gain (loss) on sales and
  write-downs of OREO
  (634)  (53)  45   -   (830)  (642)  (552)
  Adjusted non-interest expense
   (non-GAAP)
 $6,904  $6,970  $6,982  $6,785  $6,335  $27,641  $25,440 
                             
  Net interest income $10,743  $10,604  $10,338  $10,270  $10,169  $41,955  $38,885 
  Non-interest income  2,320   2,157   2,316   2,040   1,994   8,833   7,653 
  Less: net loss (gain) on sales of
  securities
  -   -   -   -   (6)  -   31 
  Operating revenue $13,063  $12,761  $12,654  $12,310  $12,157  $50,788  $46,569 
  Efficiency ratio  52.85%  54.62%  55.18%  55.12%  52.11%  54.42%  54.63%

               

  December
31,
2018
  September
30,
2018
  June 30,
2018
  March 31,
2018
  December
31,
2017
 
    
  (dollars in thousands, except per share data) 
Tangible book value per share and
  tangible common equity to tangible
  assets reconciliation:
                    
  Common equity $144,085  $139,987  $138,082  $134,814  $132,986 
  Less: Goodwill  5,038   5,038   5,038   5,038   5,038 
  Less: Core deposit intangible, net of
  amortization
  513   603   701   806   919 
  Tangible common equity (non-GAAP) $138,534  $134,346  $132,343  $128,970  $127,029 
  Common shares outstanding  6,709,480   6,694,230   6,693,447   6,684,923   6,673,381 
  Tangible book value per share $20.65  $20.07  $19.77  $19.29  $19.04 
                     
  Total assets $1,520,828  $1,514,968  $1,518,877  $1,460,257  $1,397,045 
  Less: Goodwill  5,038   5,038   5,038   5,038   5,038 
  Less: Core deposit intangible, net of
  amortization
  513   603   701   806   919 
  Tangible assets (non-GAAP) $1,515,277  $1,509,327  $1,513,138  $1,454,413  $1,391,088 
  Tangible common equity to tangible assets  9.14%  8.90%  8.75%  8.87%  9.13%
                     
Adverse classified asset ratio:                    
  Substandard loans $120,887  $118,368  $93,833  $82,648  $83,226 
  Less: Non-impaired restructured loans  (5,078)  (13,657)  (2,081)  (1,164)  (1,072)
  Net substandard loans $115,809  $104,711  $91,752  $81,484  $82,154 
  Other real estate owned  6,568   7,851   8,607   8,982   4,565 
  Substandard unused commitments  1,625   1,191   959   2,309   799 
  Less: Substandard government guarantees  (7,111)  (9,374)  (8,356)  (3,605)  (4,289)
  Total adverse classified assets (non-GAAP) $116,891  $104,379  $92,962  $89,170  $83,229 
                     
  Total equity (Bank) $185,458  $180,359  $177,911  $149,105  $146,937 
  Unrealized loss on available for
  sale securities
  2,221   4,152   2,795   2,603   627 
  Allowance for loan losses  16,505   16,143   15,129   14,612   13,247 
  Allowance for unused commitments  475   510   522   553   564 
  Adjusted total equity (non-GAAP) $204,659  $201,164  $196,357  $166,873  $161,375 
  Adverse classified asset ratio  57.12%  51.89%  47.34%  53.44%  51.57%


  For the Three Months Ended 
  December 31, 2018  December 31, 2017 
  Average
Balance (1)
  Income/
Expense
  Yields/
Rates
  Average
Balance (1)
  Income/
Expense
  Yields/
Rates
 
    
    
  (dollars in thousands) 
Assets                        
Investment securities $191,955  $1,351   2.82% $106,173  $550   2.07%
Loans (2)  1,207,883   15,536   5.14%  1,134,822   13,443   4.74%
Interest bearing deposits due from other
  banks
  67,153   223   1.33%  88,742   256   1.15%
Total interest-earning assets $1,466,991  $17,110   4.67% $1,329,737  $14,249   4.29%
                         
Allowance for loan losses  (16,034)          (13,474)        
Other assets  61,316           61,741         
Total assets $1,512,273          $1,378,004         
                         
Liabilities                        
Savings, NOW, money market, interest
  checking
 $287,420   1,043   1.45% $265,309   531   0.80%
Time deposits  820,515   4,230   2.06%  713,718   2,933   1.64%
Total interest-bearing deposits $1,107,935  $5,273   1.90% $979,027  $3,464   1.42%
Other borrowings  837   10   4.62%  1,328   18   5.53%
FHLB advances  90,509   417   1.84%  126,261   463   1.47%
Junior subordinated debentures  44,681   667   5.97%  15,523   135   3.48%
Total interest-bearing liabilities $1,243,962  $6,367   2.05% $1,122,139  $4,080   1.45%
                         
Non-interest-bearing deposits  108,140           104,718         
Other liabilities  10,913           10,242         
Total liabilities $1,363,015          $1,237,099         
                         
Shareholders' equity  149,258           140,905         
Total liabilities and equity $1,512,273          $1,378,004         
                         
Net interest income     $10,743          $10,169     
Interest rate spread (3)          2.62%          2.84%
Net interest margin (4)          2.91%          3.06%
Ratio of interest-earning assets to interest-
  bearing liabilities
  1.18           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 Year Ended 
  December 31, 2018  December 31, 2017 
  Average
Balance (1)
  Income/
Expense
  Yields/
Rates
  Average
Balance (1)
  Income/
Expense
  Yields/
Rates
 
    
  (dollars in thousands) 
Assets                        
Investment securities $169,302  $4,425   2.61% $112,439  $2,158   1.92%
Loans (2)  1,193,254   58,706   4.92%  1,086,836   50,395   4.64%
Interest bearing deposits due from other
  banks
  77,545   1,086   1.40%  52,786   499   0.95%
Total interest-earning assets $1,440,101  $64,217   4.46% $1,252,061  $53,052   4.24%
                         
Allowance for loan losses  (15,037)          (13,550)        
Other assets  59,291           56,615         
Total assets $1,484,355          $1,295,126         
                         
Liabilities                        
Savings, NOW, money market, interest
  checking
 $282,746   3,398   1.20% $245,851   1,643   0.67%
Time deposits  801,892   15,251   1.90%  661,784   10,172   1.54%
Total interest-bearing deposits $1,084,638  $18,649   1.72% $907,635  $11,815   1.30%
Other borrowings  1,027   50   4.81%  1,545   89   5.77%
FHLB advances  105,218   1,759   1.67%  127,635   1,748   1.37%
Junior subordinated debentures  32,721   1,804   5.51%  15,492   515   3.32%
Total interest-bearing liabilities $1,223,604  $22,262   1.82% $1,052,307  $14,167   1.35%
                         
Non-interest-bearing deposits  100,819           96,172         
Other liabilities  9,883           9,059         
Total liabilities $1,334,306          $1,157,538         
                         
Shareholders' equity  150,049           137,588         
Total liabilities and equity $1,484,355          $1,295,126         
                         
Net interest income     $41,955          $38,885     
Interest rate spread (3)          2.64%          2.89%
Net interest margin (4)          2.91%          3.11%
Ratio of interest-earning assets to interest-
  bearing liabilities
  1.18           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.