Quarterlytics / Financial Services / Banks - Regional / County Bancorp, Inc.

County Bancorp, Inc.

icbk · NASDAQ Financial Services
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Ticker icbk
Exchange NASDAQ
Sector Financial Services
Industry Banks - Regional
Employees 51-200
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FY2015 Annual Report · County Bancorp, Inc.
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Evolving for a strong future

2015 ANNUAL REPORT

Letter to Shareholders

William Censky
Chairman of the Board
County Bancorp, Inc.

Timothy Schneider
President, County Bancorp, Inc.
CEO, Investors Community Bank

Our efficiency ratio continued to be strong and in the industry 
peer group top quartile at 49.95% for 2015. Return on average 
assets was a record for your company at 1.35% and also was in the 
industry peer group top quartile for the year 2015, exceeding last 
year’s return on average assets of 1.10%.  

In the current competitive and sustained low interest rate com-
mercial banking environment, we were able to maintain a solid 
net interest margin at 3.36% in 2015. Our non-interest income 
also remained strong, growing to $7.7 million for 2015 versus $7.1 
million for 2014. This was primarily due to our continued strong 
secondary market sales of Farm Service Agency government 
guaranteed loans, participated loans and an increase in our crop 
insurance revenues for the year.  

Our non-performing asset level rose in the fourth quarter of 2015. 
The increase at year end was primarily due to the recognition of 
one large credit as non-accrual at the end of the fourth quarter.  
We expect this situation to resolve itself through the owner’s sale 
of the business in 2016. Finally, earnings per diluted share for 
2015 were $1.82 as compared to 2014 at $1.69. In addition, we an-
nounced an increase of 25% in our first quarter dividend for 2016.  

Company Recognition
As we previously shared with you, we opened our newly relocated 
branch in Stevens Point in early February 2016.  This beautiful 
facility will allow us to continue our growth in the Stevens Point 
and central Wisconsin market. We also opened a new Loan  
Production Office in Sheboygan in January 2016.  

People Bank with People, not Banks
We continue to be a business driven by our people and the rela-
tionships we have with our customers. We have added significant 
new talent to our team in 2015 and will add resources accordingly 
in 2016 as we see opportunity to grow. As mentioned earlier, we 
are excited about the people joining our team in the Appleton 
and Green Bay markets as part of our acquisition of The Business 
Bank.  

Thank you for your support as shareholders this past year, and 
hopefully you are as pleased with our results for 2015 as we are.  
We are proud to share our successes with you as we move into an 
evolving time as a bank and an industry.  

Dear Shareholders:
2015 was quite an exciting and active year for County Bancorp, 
Inc.  Besides the outstanding financial performance of your com-
pany, which I will expound on later, we are Evolving for a Strong 
Future. What do I mean by this? Strategically, our board decided 
a few years ago that providing long-term shareholder liquidity was 
important.  To address this issue we made the decision to take the 
company public, and on January 16, 2015 we started trading on 
the NASDAQ Global Market (ICBK), raising approximately $16.9 
million (net proceeds) in additional capital through an Initial 
Public Offering.  

Why would a company that is already well capitalized require 
additional capital? This additional capital, along with the public 
currency we created by taking the company public, allowed us to 
pursue another high priority set by your board – that of pursuing 
qualified acquisition candidates. Two of our primary objectives of 
an acquisition are to provide a diversification of our loan portfo-
lio by acquiring a strong commercially-focused bank, along with 
finding an acquisition that’s located in a strong community for fu-
ture growth. We accomplished this with the May 13, 2016 closing 
of the acquisition of Fox River Valley Bancorp, Inc. and its wholly 
owned subsidiary, The Business Bank, with locations in Appleton 
and Green Bay.  We are very excited about our new venture with 
The Business Bank and the outstanding new team members who 
will be joining Investors Community Bank (ICB), along with their 
solid commercial banking customers becoming customers of ICB.

As you can see, we have had a lot going on this past year.  Diligent 
and extreme hard work have gone into accomplishing both of 
these goals by many team members at ICB. Again, we felt both of 
these steps were necessary in the ever-evolving banking business 
to continue to provide long term shareholder value creation.

2015 Company Performance
2014 was an outstanding year for County Bancorp, Inc., but 2015 
was even better.  We surpassed net income year-over-year by 
33.7% – $8.2 million in 2014 versus $11.0 million in 2015.  Our 
loan growth was also extremely strong, growing $100.1 million 
in net loans for the year – $648.1 million at year end 2014 versus 
$748.2 million at year end 2015. We also surpassed $1.2 billion in 
total loans serviced in 2015. This number represents all loans on 
our balance sheet as well as loans serviced, which includes Farm 
Service Agency government guaranteed loans sold in the second-
ary market and loans participated to other financial institutions.   

ON THE COVER: 3 Sheeps Brewing Company, Sheboygan; Our new 
Stevens Point banking center; ICB agricultural banking team

1

Directors &
Advisory Board

Investors Community
Bank Officers

Senior Management 

Investors Community Bank Officers

William C. Censky
    Chairman of the Board
Timothy J. Schneider
    President
Gary R. Abramowicz
    Chief Financial Officer and Treasurer
Mark A. Miller
    Secretary and Securities Compliance Officer

2015 Board of Directors 
County Bancorp Inc. / Investors Community Bank

William C. Censky
    Investors Community Bank
Mark R. Binversie
    Investors Community Bank 
Timothy J. Schneider
    Investors Community Bank 
Wayne D. Mueller
    Investors Community Bank
Carmen L. Chizek
    Chizek Transport, Inc.
Lynn D. Davis, Ph.D.
    Nutrition Professionals, Inc.
Rick G. Dercks
    Business Consultant and Investor
Edson P. Foster
    Foster Needle Co., Inc.
Robert E. Matzke
    Financial Services of Northeast Wisconsin
Kathi P. Seifert*
    Katapult, LLC
Andrew J. Steimle
    Steimle Birschbach LLC
Kenneth R. Zacharias, CPA
    Schenck Business Solutions
Gary J. Ziegelbauer
    Triangle Distributing, Inc.

Stevens Point Advisory Board 

Augusto (Tito) Alinea
    Stevens Point Anesthesia 
Dan Bukowski
    Markit, N.A. and DigiCopy, Inc. 
Bill Mullins
    Mullins Cheese 
Ken Turzinski 
    DMK, Inc. 
Bill Wolfe 
    Wisconsin River Cranberry & Lester Cranberry

*Investors Community Bank Board Only

Gary R. Abramowicz, Executive Vice President – Chief Financial 

Officer/Treasurer

Trever J. Athorp, Senior Agricultural & Business Banking Officer
Nicole M. Bahn, Senior Special Assets Officer 
Tony J. Betley, Senior Agricultural Banking Officer
Mark R. Binversie, President
Virginia Bishop, Asst. Vice President - Banking Services
Mary A. Boeckman, Loan Quality Control Specialist
William C. Censky, Chairman of the Board
David A. Coggins, Executive Vice President – Chief Banking Officer
Christopher C. Cox, Senior Business Banking Officer 
Thomas D. Detienne, Market President – Southeast Region      
David J. Diedrich, Vice President – Business Banking 
Jeff C. Duffrin, Senior Business Banker
Steven J. Fleming, Senior Agricultural Banking Officer
Deb Geiger, Asst. Vice President – Electronic Banking  
Katelin R. Haglund, Agricultural Credit Manager
Jeffrey J. Hebert, Bank Systems Manager
Bill C. Hodgkiss, Senior Vice President - Business Banking   
Brian J. Hoskens, Vice President – Agricultural Banking 
Michael J. Hostak, Vice President – Information Technology  
Jeffrey L. Jagodinsky, Senior Business Banking Officer
Matt K. Kasdorf, Deputy Chief Credit Officer 
Justin R. Knuth Credit Manager – Business Banking 
Cari A. Larsen, Vice President – Controller 
Matt R. Lemke, Vice President – Banking Services 
Kaarin M. Long, Cash Management Relationship Manager
Mark D. Ludtke, Agricultural Banking Officer
Mark C. Maurer, Vice President – Business Banking 
Craig P. Mayo, Executive Vice President – Chief Credit Officer
Lori A. Megow, Asst. Vice President – Banking Services  
Mark A. Miller, Executive Vice President – Chief Risk Officer 

& Bank Counsel/Secretary of the Board

Laurie K. Olson, Vice President - Business Banking  
Tom J. Pennings, Senior Business Banker
Bill A. Pfingsten, Senior Vice President - Agricultural Banking
Kathleen M. Richardson, Asst. Vice President – Banking Services  
Christopher J. Schneider, Vice President – Agricultural Banking 
Patricia M. Schneider, Vice President – Deposit Operations /  

Security Officer / BSA Administrator
Timothy J. Schneider, Chief Executive Officer 
Scott Schroeter, Agricultural Portfolio Manager
Roger P. Sinkula, Agricultural Banking Officer
Sharon A. Slager, Asst. Vice President – Governmental Guarantee 

Loan Program  

James J. Smidel, Agricultural Banking Officer
Susan M. Smith, Executive Vice President – Chief Human Resources  

Officer

Lori A. Webster, Vice President – Compliance Officer
Laura A. Wiegert, Vice President – Marketing  
Cyrene N. Wilke, Vice President – Loan Operations/CRA Officer
Scott C. Yukel, Vice President - Business Banking  

2

 
 
 
 
 
 
Selected Financial Highlights*

COUNTY BANCORP, INC. AND SUBSIDIARIES
December 31, 2015 and 2014 

*Additional financial information is available upon request or can be viewed at www.ICBK.com (click on Investor Relations button in upper left corner)

For the year ended December 31

             2015 

     2014
Dollars in thousands except per share data

 $33,767 
        7,520 
 26,247 
 (1,019)
 27,266 

 7,685 
   17,458 
 17,493 
    6,519 
 $10,974 

 $1.85 
 $1.82 
 $0.16 
 $17.16 

1.35%
11.27%
3.36%
3.13%
0.95%
2.15%
1.20%
49.95%
8.79%

3.29%

1.39%
42.33%
(0.12)%
3.10%

11.19%
13.94%
15.19%
13.94%
13.29%

 $30,897 
            7,537 
 23,360 
       589 
 22,771 

 7,148 
   17,025 
 12,894 
    4,684 
 $8,210 

 $1.73 
 $1.69 
 N/A 
 $16.01 

1.10%
11.37%
3.29%
3.07%
0.96%
2.28%
1.32%
50.99%
 N/A 

1.78%

1.64%
91.76%
0.08%
2.42%

9.33%
15.51%
16.77%
N/A
13.96%

RESULTS OF OPERATIONS:

Interest income
Interest expense

Net interest income
Provision for loan losses

Net interest income after provision for 
(recovery of) loan losses

  Non-interest income
  Non-interest expense

Income before income taxes

Income tax expense
Net income

PER SHARE DATA:

Basic
Diluted
Cash dividends per common share
Book value per share

PERFORMANCE RATIOS:
Return on average assets
Return on average common shareholders’ equity 

  Net interest margin
Interest rate spread

  Non-interest income to average assets
  Non-interest expense to average assets
  Net overhead ratio 
Efficiency ratio 
Dividend payout ratio

ASSET QUALITY RATIOS:
  Nonperforming loans to total loans

Allowance for loan losses to:

Total loans
Nonperforming loans

  Net charge-offs (recoveries) to average loans
  Nonperforming assets to total assets

CAPITAL RATIOS:

Shareholders’ common equity to assets
Tier 1 risk-based capital (Bank)
Total risk-based capital (Bank)
Tier 1 Common Equity Ratio (Bank)
Leverage ratio (Bank)

3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Balance Sheets

COUNTY BANCORP, INC. AND SUBSIDIARIES
December 31, 2015 and 2014 

ASSETS

Cash and cash equivalents
Securities available for sale, at fair value
FHLB Stock, at cost
Loans held for sale
Loans, net of allowance for loan losses of $10,405 as of 

December 31, 2015 and $10,603 as of December 31, 2014

Premises and equipment, net
Loan servicing rights
Other real estate owned, net
Cash surrender value of bank owned life insurance
Deferred tax asset, net
Accrued interest receivable and other assets

Total assets

LIABILITIES
Deposits:

Non-interest bearing
Interest bearing
Total deposits
Other borrowings
Advances from FHLB
Subordinated debentures

Accrued interest payable and other liabilities

Total liabilities

             2015 

     2014

Dollars in thousands

 $   14,907 
 83,281 
 3,507 
 9,201 

 737,784 
 7,165 
 8,145 
 2,872 
 11,155 
 2,048 
      4,824 
 $884,889 

 $   70,914 
   601,312 
 672,226 
 3,945 
 66,445 
 12,372 
      7,877 
  762,865 

 $   10,480 
 81,282 
 1,252 
 4,114 

637,519 
 4,596 
 7,746 
 7,137 
 10,863 
 2,321 
      4,446 
 $771,756 

 $   81,534 
   523,935 
 605,469 
 23,857 
 28,000 
 12,372 
      7,015 
  676,713 

Small Business Lending Fund redeemable preferred stock-variable rate,  
noncumulative, nonparticipating, $1,000 stated value; 15,000 shares  
authorized and issued, $15,000 redemption amount

 $   15,000 

 $   15,000 

SHAREHOLDERS’ EQUITY

Preferred stock-variable rate, non-cumulative, nonparticipating, $1,000  

stated value; 15,000 shares authorized; 8,000 shares issued
Common stock - $0.01 par value; 50,000,000 authorized; 6,192,609   

shares issued and 5,771,001 shares outstanding as of December 31,  
2015 and 4,908,560 shares issued and 4,498,790 shares outstanding  
as of December 31, 2014

Surplus
Retained earnings
Treasury stock, at cost, 421,608 and 409,770 shares, respectively
Accumulated other comprehensive income

Total shareholders’ equity
Total liabilities and shareholders’ equity

8,000 

 8,000 

 19 
 34,717 
 68,825 
 (4,758)
         221 
  107,024 
 $884,889 

 5 
 16,970 
 59,254 
 (4,572)
         386 
    80,043 
 $771,756 

4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
         
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Operations

COUNTY BANCORP, INC. AND SUBSIDIARIES
For the years ended December 31, 2015 and 2014 

             2015 

     2014

Dollars in thousands except per share data

INTEREST AND DIVIDEND INCOME

Loans, including fees
Taxable securities
Tax-exempt securities
Federal funds sold and other

Total interest and dividend income

INTEREST EXPENSE
  Deposits

FHLB advances and other borrowed funds
Subordinated debentures

Total interest expense

  Net interest income

Provision for loan losses

  Net interest income after provision for loan losses

NON-INTEREST INCOME

Services charges

  Gain on sale of loans, net
Loan servicing fees

  Other

Total non-interest income

NON-INTEREST EXPENSE

Employee compensation and benefits

  Occupancy
  Write-down of other real estate owned
  Other

Total non-interest expense

Income before income taxes
Income tax expense

NET INCOME

NET INCOME PER SHARE:

Basic
  Diluted
  Dividends paid per share

 $32,301 
 964 
 437 
         65 
  33,767 

 6,238 
 882 
       400 
    7,520 
 26,247 
 (1,019)
  27,266 

 1,039 
 429 
 5,323 
       894 
    7,685 

 10,769 
 338 
 256 
    6,095 
  17,458 
 17,493 
    6,519 

$10,974 

 $1.85 
 $1.82 
 $0.16 

 $29,416 
 897 
 474 
       110 
  30,897 

 6,154 
 903 
       480 
    7,537 
 23,360 
       589 
  22,771 

 788 
 321 
 4,938 
    1,101 
    7,148 

 10,209 
 299 
 1,190 
    5,327 
  17,025 
 12,894 
    4,684 

 $8,210 

 $1.73 
 $1.69 
 N/A 

5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Locations & Loan Relationships

Branches 

Manitowoc 
860 N. Rapids Rd. 
Manitowoc, WI 
(Corporate headquarters)

Appleton 
5643 Waterford Ln. 
Appleton, WI 

Green Bay 
3193 Voyager Dr. 
Green Bay, WI 

  Stevens Point
  5517 Vern Holmes Dr.
  Stevens Point, WI

Counties where ICB has loan relationships as of 12/31/15

ICB Loan Production Offices

Member FDIC
Member FDIC

6

 
 
 
 
 
A partnership 
that adds up!
The Business Bank is now 
Investors Community Bank

The Business Bank has merged with Investors 

Community Bank, and it’s a partnership that  

adds up perfectly. Together we are focused on the 

financial needs of area businesses ... with a shared 

passion for personal service, customized solutions 

and local decision making.

InvestorsCommunityBank.com

Annual Meeting 

Tuesday, June 21, 2016 at 6 PM at the Silver Lake College Franciscan Center  
Atrium, 2406 S. Alverno Rd., Manitowoc

Corporate Headquarters 

860 North Rapids Rd., PO Box 700, Manitowoc WI 54221-0700, (920) 686-9998,    
1-888-686-9998 

Transfer Agent  

Stock Listing 

Computershare Trust Company, N.A.; 211 Quality Circle, Suite 210; 
College Station, TX 77845  

County Bancorp, Inc. common stock is traded on the NASDAQ Global Market  
under the symbol “ICBK”

Shareholder website 

www.ICBK.com (click on Investor Relations button in upper left corner)

Investor Relations 

Shareholders, analysts, the news media and others desiring general information about the   
company or its subsidiaries may contact Timothy J. Schneider, CEO, at the corporate  
headquarters.

This report includes “forward-looking statements.” Forward-looking statements are subject to known and unknown risks and uncertain-
ties, many of which may be beyond our control. We caution you that the forward-looking information presented in this document is not a 
guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking informa-
tion contained here. 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. Any forward-looking information presented herein is made only as of the date of publication 
of this annual report, 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.

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