Celebrating 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