More annual reports from County Bancorp, Inc.:
2021 ReportCelebrating Two Decades of Growth 2016 ANNUAL REPORT Timothy Schneider, President, County Bancorp, Inc.; CEO, Investors Community Bank William Censky Chairman of the Board County Bancorp, Inc. Celebrating Two Decades of Growth 2017 is a milestone year for Investors Community Bank as we celebrate our 20th anniversary! It was March 17, 1997 when we first opened our doors in Manitowoc, Wisconsin. We had a vision to start a bank built on the philosophy that people bank with people, not banks, and it is a move that we believe has proven successful. the Appleton and Green Bay markets with our expanded footprint and new teammates. Total assets grew $357.8 million year-over-year 2015 to 2016 year end. Approximately $230 million of this asset growth came through the acquisition of Fox River Valley Bancorp, Inc. Total loans grew by $282.3 million year- For those of you who have been shareholders since the over-year, of which approximately $142 million was via beginning, thank you for your unwavering support; for the acquisition of Fox River Valley Bancorp, Inc. improved from 3.10% to 1.84% at year end 2015 versus year end 2016. As mentioned in our 4th quarter earnings release, our historic tenets have been sound underwrit- ing, loan growth and an efficient operating model, which result in strong bottom line results for our shareholders. We feel again we have accomplished this in 2016. We are excited that we were able to increase our 2017 1st quarter shareholder dividend to 6 cents per share, which is a 20 percent increase over the last quarterly dividend. those who have joined us along the way, thank you as well – we couldn’t have done it without you! We can’t believe that 20 years have passed and how much we’ve accomplished in these two decades. See page 6 for a timeline of our milestone events through the years. Your bank had another outstanding year from a perfor- mance standpoint. We saw strong asset and loan growth both organically and as a product of our acquisition of Fox River Valley Bancorp, Inc. We crossed the $1 billion asset size in 2016 as well, which was another milestone for our organization. The integration with our new part- ner has gone well, and we are poised for growth in both Net income for 2016 was $10.7 million, compared to $11 million for 2015. 2016 included $2.6 million of one-time merger-related costs. It was a solid year from We are proud to be an organization driven to success an earnings perspective again for your company. by its people and the relationships they have with our We maintained a solid net interest margin of 3.35% for 2016, versus 3.36% for 2015. Non-interest income grew by 13% year-over-year from approximately $7.7 million in 2015 to approximately $8.7 million in 2016. Our efficiency ratio increased to approximately 54% for 2016 from approximately 50% in 2015, but 2016 included the one-time merger related expenses of $2.6 million. Non-performing assets as a percentage of total assets 1 customers. We continue to add solid talent to our team in all of our markets and are excited about the growth opportunities for your company in the future. Thank you for being a supporter of County Bancorp, Inc.! 1 Directors & Advisory Board Senior Management William C. Censky, Chairman of the Board Timothy J. Schneider, President Dave Kohlmeyer, Interim Chief Financial Officer and Treasurer Mark A. Miller, Secretary and Securities Compliance Officer 2016 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. 2017 Stevens Point Advisory Board E. John Buzza, Buzza Dreier & Johnson LLC Ted Hesemann, Herrschners, Inc. Richard Okray, Okray Family Farms, Inc. Daniel J. Bukowski Sr., Net Alpha Advisers LLC Bill Mullins, Mullins Cheese, Inc. Ken Turzinski, TYRI Americas *Investors Community Bank Board Only Investors Community Bank Officers** Trever J. Athorp, Vice President – Ag & Business Banking Officer Nicole M. Bahn, Vice President – Senior Special Assets Officer Tony J. Betley, Vice President – Ag Banking Officer Mark R. Binversie, President Virginia Bishop, Assistant Vice President – Banking Services Manager Julie A. Blaha, Vice President – Deposit Operations / Security Officer / BSA Administrator David A. Coggins, Executive Vice President – Chief Banking Officer Christopher C. Cox, Vice President – Business Banking Officer William C. Deppiesse, Vice President – Business Banking Officer Thomas D. Detienne, Vice President – Market President – SE Region David J. Diedrich, Vice President – Sr. Business Banking Officer Jeffrey C. Duffrin, Vice President – Business Banking Officer Steven J. Fleming, Vice President – Ag Banking Officer Jennifer L. Foote, Vice President – Loan Operations Manager Debra J. Geiger, Assistant Vice President – Electronic Banking Curtis L. Gerrits, Assistant Vice President – Ag Banking Officer Katelin R. Haglund, Assistant Vice President – Credit Manager – Ag Jeffrey J. Hebert, Bank Systems Manager William C. Hodgkiss, Senior Vice President – Business Banking Brian J. Hoskens, Vice President – Sr. Ag Banking Officer Michael J. Hostak, Vice President – Information Technology Jeffrey L. Jagodinsky, Vice President – Business Banking Officer Matthew K. Kasdorf, Senior Vice President - Deputy Chief Credit Officer Dave D. Kohlmeyer, Senior Vice President – Finance / Interim CFO / Treasurer Cari A. Larsen, Vice President – Controller Matthew R. Lemke, Vice President – Banking Services Mark D. Ludtke, Assistant Vice President – Ag Banking Officer Mark C. Maurer, Vice President – Sr. Business Banking Officer Craig P. Mayo, Executive Vice President – Chief Credit Officer Lori A. Megow, Assistant Vice President – Banking Services Manager Mark A. Miller, Executive Vice President – Chief Risk Officer & Bank Counsel / Secretary Laurie K. Olson, Vice President – Sr. Business Banking Officer Thomas J. Pennings, Vice President – Business Banking Officer Sarah E. Peterson, Credit Manager – Business Sandra M. Retzki, Vice President – Sr. Business Banking Officer Christopher J. Schneider, Vice President – Sr. Ag Banking Officer Timothy J. Schneider, Chief Executive Officer Scott V. Schroeter, Portfolio Manager – Ag Robert A. Seal, Assistant Vice President – Business Banking Officer Roger P. Sinkula, Assistant Vice President – Ag Banking Officer Sharon A. Slager, Assistant Vice President – Governmental Guarantee Loan Program James J. Smidel, Assistant Vice President – Ag Banking Officer Susan M. Smith, Executive Vice President – Chief Human Resources Officer Brooke R. Sprang, Assistant Vice President – Human Resources Manager Lori A. Webster, Vice President – Compliance Officer Laura A. Wiegert, Senior Vice President – Marketing Cyrene N. Wilke, Senior Vice President – Operations / CRA Officer Brad S. Witbro, Assistant Vice President – Banking Services Manager **As of March 1, 2017 2 Selected Financial Highlights* County Bancorp, Inc. and Subsidiaries December 31, 2016 and 2015 (unaudited) *Additional financial information is available upon request or can be viewed at InvestorsCommunityBank.com (click on Investor Relations icon). For the year ended December 31 2016 2015 (Dollars in thousands except per share data) SELECTED INCOME STATEMENT DATA: 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 tax expense Net income PER COMMON SHARE DATA: Basic Diluted Cash dividends per common share Book value per share Weighted average common shares - basic Weighted average common shares - diluted Common shares outstanding, end of period PERFORMANCE RATIOS: Return on average assets Return on average common shareholders’ equity** Equity to assets ratio 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) 45,581 10,014 35,567 2,959 32,608 8,715 24,146 6,483 10,694 1.65 1.61 0.20 18.72 6,260,040 6,415,204 6,586,335 0.98% 9.51% 10.56% 3.35% 3.16% 0.80% 2.21% 1.41% 53.72% 12.42% 1.95% 1.23% 62.89% 0.08% 1.84% 9.92% 11.08% 13.23% 11.08% 12.07% $ $ $ $ $ $ 33,767 7,520 26,247 (1,019) 27,266 7,685 17,458 6,519 10,974 1.85 1.82 0.16 17.16 5,664,678 5,777,802 5,771,001 1.35% 11.27% 14.30% 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% 3 **Non-GAAP measure YEARS1997-2017 Consolidated Balance Sheets County Bancorp, Inc. and Subsidiaries December 31, 2016 and 2015 (unaudited) 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 $12,645 as of December 31, 2016 and $10,405 as of December 31, 2015 Premises and equipment, net Loan servicing rights Other real estate owned, net Cash surrender value of bank owned life insurance Deferred tax asset, net Goodwill Core deposit intangible, net of amortization of $360 as of December 31, 2016; $0 as of December 31, 2015 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 2016 2015 (Dollars in thousands) $ $ $ 42,679 123,437 5,688 1,162 1,017,841 9,819 9,264 3,161 11,448 5,486 5,038 1,441 6,206 1,242,670 118,657 858,861 977,518 2,152 107,895 15,451 8,366 1,111,382 $ $ $ 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 Small Business Lending Fund redeemable preferred stock-variable rate, noncumulative, nonparticipating, $1,000 stated value; 15,000 shares authorized; no shares issued at December 31, 2016; 15,000 shares issued, $15,000 redemption amount at December 31, 2015 $ - $ $15,000 SHAREHOLDERS’ EQUITY Preferred stock-variable rate, non-cumulative, nonparticipating, $1,000 stated value; 15,000 shares authorized; 8,000 shares issued 8,000 8,000 Common stock - $0.01 par value; 50,000,000 authorized; 7,018,248 shares issued and 6,586,335 shares outstanding as of December 31, 2016 and 6,192,609 shares issued and 5,771,001 shares outstanding as of December 31, 2015 Surplus Retained earnings Treasury stock, at cost, 431,913 and 421,608 shares at December 31, 2016 26 50,553 77,907 and 2015, respectively Accumulated other comprehensive income (loss) Total shareholders’ equity Total liabilities and shareholders’ equity (4,828) (370) 131,288 1,242,670 $ 19 34,717 68,825 (4,758) 221 107,024 884,889 $ 4 YEARS1997-2017 Consolidated Statement of Operations County Bancorp, Inc. and Subsidiaries Years ended December 31, 2016 and 2015 (unaudited) 2016 2015 (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 5 $ $ $ $ 43,552 1,433 368 228 45,581 8,195 1,445 374 10,014 35,567 2,959 32,608 1,341 242 6,571 561 8,715 13,101 512 480 10,053 24,146 17,177 6,483 10,694 1.65 1.61 0.20 $ $ $ $ $ 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 YEARS1997-2017 Celebrating Two Decades of Growth YEARS 1997-2017 6 BOOK VALUE PER SHARE GROWTH Celebrating two decades of growth GROWTH SINCE ICBK FOUNDING ICBK comparison to Berkshire Hathaway Class A Shares Book Value Per Share Growth G r o w t h 1200.0% 1000.0% 800.0% 600.0% 400.0% 200.0% 0.0% About County Bancorp, Inc. GROWTH SINCE ICBK IPO 18.0% Annual Meeting 16.0% Corporate Headquarters 14.0% 12.0% Transfer Agent 10.0% Stock Listing 8.0% 6.0% Shareholder website Investor Relations 4.0% 2.0% 0.0% Tuesday, June 20, 2017 at 6 PM, Holiday Inn Manitowoc, 4601 Calumet Ave., Manitowoc 860 North Rapids Rd., PO Box 700, Manitowoc WI 54221-0700, (920) 686-9998, 1-888-686-9998 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.” InvestorsCommunityBank.com (click on Investor Relations icon) 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. f o u n d i n g I C B K s i n c e ICBK 1055.6% (13.4% CAGR) BRK.A 621.7% (10.7% CAGR) Source: S&P Global Market Intelligence, company data. (12-31-16) ICBK 15.8% This report includes “forward-looking statements.” Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that the forward-looking information presented in this 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 infor- mation 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 ter- minology. Any forward-looking information present- ed 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. BRK.A 11.4% Mar-15 Jun-15 Sep-15 7 Dec-15 Mar-16 Jun-16 Sep-16 Source: SNL Financial, Company data. 2
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