Shaping the
future together
ANNUAL REPORT
2018
Shaping the future together
2018 brought a
record profit for your
company at $14.3
million. We are very
pleased to report this,
but, as you may know,
we also have been ex-
periencing an extended
low commodity price
environment, which
has made it difficult for
many of our agricul-
tural customers. The
challenges in the ag
sector have been well
documented in the
media over the past
number of months.
We continue to work
with these clients to as-
sist where we can and
help them through this
challenging time.
We are hopeful that if the United States can
finalize a trade deal with China (fingers crossed
this has occurred by the time you are reading
this) and we finalize the new Mexico Canada
Trade Agreement (formerly NAFTA), we will
see some relief for our farmers. If the trade
agreements do not come to fruition, we will
continue to manage through this cycle.
In addition to our record earnings in 2018, we
also saw very solid core deposit growth of nearly
$70 million. Our core deposit focus was strong
in 2018 and will be even stronger in 2019, as
we continue to change the composition of our
funding more toward core and less on wholesale
sources. This is a strategic shift that will position
us well for the future.
Along with this, we are managing our on-
balance sheet loan growth in 2019 to allow the
deposit composition shift to occur. In 2018, we
grew $58.3 million in on-balance sheet loans,
which was a mix of agricultural and commer-
cial loans. Our gross loans serviced increased
$119.4 million during 2018. Gross loans would
include the on-balance sheet loans as well as
participated loans and Government Guaranteed
loans sold into the secondary market. As you
can see from these two numbers, approximately
half of our total loan originations during 2018
were either participated or sold, to manage our
on-balance sheet loan growth.
With the continued low commodity price envi-
ronment, this has placed strain on a number of
our borrowers and has elevated our non-per-
forming asset levels and classified assets. We
are managing both of these with great focus,
but until we see commodity prices improve we
don’t see these levels improving. We are well
capitalized as an organization and structure the
majority of our agricultural relationships with
continued
William Censky
Chairman of the Board
County Bancorp, Inc.
Timothy Schneider
President, County
Bancorp, Inc.;
CEO, Investors
Community Bank
1
Shaping the future together
Shaping the future together
some form of a Farm Service Agency (FSA)
Government guarantee. The broad use of the
FSA guarantee program is a strong risk miti-
gant to loan loss exposure. Recently announced
through the new Farm Bill, the FSA guarantee
limits have been increased by approximately
$325,000, which will allow us to further reduce
loan loss exposure on many of our relationships.
Here are some additional bank
highlights from 2018:
Talent: In 2018, we continued to add talent
to our team in many positions and locations,
including our new Chief Credit Officer, John
Fillingim. A Florida native, John joined ICB
with more than 30 years of experience in com-
mercial and agricultural banking, most recently
as a senior executive at Synovus Bank. Overall
we have a great team of people committed to
the strategic direction we have set for long-term
success. Your company has always been focused
on Soundness, Profitability and Growth, in that
order.
Technology: We continue to
research and implement banking
technology that helps enhance
customer access to services and
simplify banking. In 2018, this
included new programs such as
mobile banking for consumers and
businesses, mobile deposit capture,
person-to-person payments, Card
Valet fraud protection, and more. We are excit-
ed to launch online account opening, customer
chat, and other new customer-focused technol-
ogies in 2019.
last summer. We now occupy the
former Manitowoc Company world
headquarters building at 2400 S.
44th Street in Manitowoc. The new
site is a perfect fit for our employees
and space needs. Additionally, we
have purchased land just off of I-41
in the Appleton area, near Navi-
tus and Meijer. The bank plans on
constructing a new banking center and moving
its existing Appleton branch there sometime in
the future.
Facilities: Our bank and holding company
corporate headquarters moved to a new home
As always we appreciate your support as share-
holders, and if you have any questions feel free
to reach out any time.
William Censky
Tim Schneider
2
Directors, Advisory Board
& ICB Officers
Senior Management of County Bancorp, Inc.
William C. Censky, Chairman of the Board
Timothy J. Schneider, President
Glen L. Stiteley, Chief Financial Officer and Treasurer
Mark A. Miller, Secretary and Securities Compliance Officer
Board of Directors*
County Bancorp, Inc. / Investors Community Bank
Mark R. Binversie, Investors Community Bank
William C. Censky, Investors Community Bank
Lynn D. Davis, Ph.D., Nutrition Professionals, Inc.
Edson P. Foster, Foster Needle Co., Inc. (Retired)
Vicki L. Leinbach, Ariens Company
Robert E. Matzke, Financial Services of Northeast Wisconsin
Wayne D. Mueller, Investors Community Bank
Patrick J. Roe, First Community Financial Partners, Inc. (Retired)
Timothy J. Schneider, Investors Community Bank
Kathi P. Seifert, Katapult, LLC
Andrew J. Steimle, Steimle Birschbach LLC
Gary J. Ziegelbauer, Triangle Distributing, Inc.
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
*As of 2/1/19
Investors Community Bank Officers
Trever J. Athorp
Nicole M. Bahn
Tony J. Betley
Mark R. Binversie
Julie Blaha
William C. Censky
David A. Coggins
William C. Deppiesse
Thomas D. Detienne
David J. Diedrich
John R. Fillingim
Steven J. Fleming
Jennifer L. Foote
Curtis L. Gerrits
Jeffrey J. Hebert
William C. Hodgkiss
Brian J. Hoskens
Michael J. Hostak
Jeffrey L. Jagodinsky
Matthew K. Kasdorf
David D. Kohlmeyer
Cari A. Larsen
Matthew R. Lemke
Mark D. Ludtke
Mark C. Maurer
Timothy S. McTigue
Lori A. Megow
Mark A. Miller
Thomas J. Pennings
Renee A. Petersen
Sarah E. Peterson
Sandra M. Retzki
JoAnn M. Rutta
Christopher J. Schneider
Timothy J. Schneider
Scott V. Schroeter
Robert A. Seal
Roger P. Sinkula
Sharon A. Slager
James J. Smidel
Brooke R. Sprang
Katelin R. Steege
Mark J. Sterr
Glen L. Stiteley
Debbie L. Suettinger
Barb J. Wege
Laura A. Wiegert
Cyrene N. Wilke
Susan M. Van De Hey
Vice President – Ag & Business Banking Officer
Vice President – Senior Special Assets Officer
Vice President – Sr. Ag Banking Officer
President
Sr. Banking Services Support Specialist | Security Officer
Chairman of the Board
Executive Vice President – Chief Banking Officer
Vice President – Sr. Business Banking Officer
Vice President – Market President – SE Region
Vice President – Sr. Business Banking Officer
Executive Vice President – Chief Credit Officer
Vice President – Ag Banking Officer
Vice President – Compliance Officer | CRA Officer
Assistant Vice President – Ag Banking Officer
Bank Systems Manager
Senior Vice President – Business Banking
Vice President – Sr. Ag Banking Officer
Vice President – Information Technology
Vice President – Business Banking Officer
Senior Vice President - Deputy Chief Credit Officer
Senior Vice President – Finance
Vice President – Controller
Senior Vice President – Banking Services
Assistant Vice President – Ag Banking Officer
Vice President – Sr. Business Banking Officer
Senior Vice President – Agricultural Banking
Assistant Vice President – Banking Services Manager
Executive Vice President – Chief Risk Officer & Bank Counsel / Secretary
Vice President – Sr. Business Banking Officer
Assistant Vice President – Electronic Banking Manager
Vice President – Credit Administration Manager
Vice President – Sr. Business Banking Officer
Assistant Vice President – Banking Services Manager
Vice President – Sr. Ag Banking Officer
Chief Executive Officer
Assistant Vice President - Ag Banking Officer
Assistant Vice President – Business Banking Officer
Assistant Vice President – Ag Banking Officer
Assistant Vice President – Governmental Guarantee Loan Program
Assistant Vice President – Ag Banking Officer
Vice President – Human Resources
Assistant Vice President – Credit Manager – Ag
Vice President – Sr. Business Banking Officer
Executive Vice President – Chief Financial Officer / Treasurer
Assistant Vice President – Sr. Benefits & Compensation Specialist
Assistant Vice President – Banking Services Manager
Senior Vice President – Marketing
Senior Vice President – Operations
Assistant Vice President – Loan Operations Manager
3
Selected Income Statement Data:
Interest income
Interest expense
Net interest income
Provision for loan losses
Net interest income after provision for
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
Tangible 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 to average loans
Nonperforming assets to total assets
Capital Ratios:
Shareholders’ common equity to assets
Total risk-based capital
Leverage ratio
Tangible common equity to tangible assets**
As of and for the year ended December 31
2018
_ 2017
(Dollars in thousands except per share data)
$64,217
22,262
41,955
3,195
38,760
8,833
28,283
5,059
$14,251
$2.06
$2.04
$0.28
$21.48
$20.65
6,704,051
6,772,927
6,709,480
0.96%
9.50%
10.00%
2.91%
2.64%
0.60%
1.91%
1.31%
54.42%
13.73%
1.90%
1.37%
71.81%
(0.01)%
1.94%
9.47%
15.35%
12.44%
9.14%
$53,052
14,167
38,885
2,330
36,555
7,653
25,992
7,791
$10,425
$1.52
$1.49
$0.24
$19.93
$19.04
6,635,383
6,746,846
6,673,381
0.80%
7.77%
10.09%
3.11%
2.89%
0.59%
2.01%
1.42%
54.63%
16.11%
1.01%
1.15%
114.60%
0.16%
1.15%
9.52%
12.79%
10.76%
9.13%
4
*
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*Additional financial information is available upon
request or can be viewed at InvestorsCommunity-
Bank.com (click on Investor Relations icon).
**This is a non-GAAP measure. Refer to our Form
10-K filed with the SEC on March 14, 2019 for
a reconciliation to the most comparable GAAP
measurement.
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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 $16,505 as of
December 31, 2018; $13,247 as of December 31, 2017
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 $1,288 as
of December 31, 2018; $882 as of December 31, 2017
Accrued interest receivable and other assets
Total assets
LIABILITIES
Deposits:
Noninterest-bearing
Interest-bearing
Total deposits
Other borrowings
Advances from FHLB
Subordinated debentures
Accrued interest payable and other liabilities
Total liabilities
SHAREHOLDERS’ EQUITY
As of December 31
2018
2017
(Dollars in thousands except per share data)
$61,087
195,945
2,978
2,949
1,190,790
16,075
9,047
6,568
17,842
4,346
5,038
513
7,849
$ 1,521,027
$121,436
1,101,911
1,223,347
827
89,400
44,703
10,466
1,368,743
$66,771
126,030
4,138
6,575
1,135,704
9,662
8,950
4,962
17,389
3,265
5,038
919
7,642
$ 1,397,045
$125,584
984,493
1,110,077
1,299
121,500
15,523
7,660
1,256,059
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;
7,153,174 shares issued and 6,709,480 shares outstanding
as of December 31, 2018; 7,112,962 shares issued and
6,672,381 shares outstanding as of December 31, 2017
Surplus
Retained earnings
Treasury stock, at cost, 443,694 and 439,581 shares at
December 31, 2018 and 2017, respectively
Accumulated other comprehensive loss
Total shareholders’ equity
Total liabilities and shareholders’ equity
8,000
8,000
28
53,162
98,475
(5,030)
(2,351)
152,284
$1,521,027
28
52,230
86,385
(5,030)
(627)
140,986
$1,397,045
5
For the year ended December 31
2018
2017
(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 borrowings
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
$58,706
3,727
698
1,086
64,217
18,649
1,809
1,804
22,262
41,955
3,195
38,760
1,674
172
6,110
877
8,833
16,785
1,059
873
9,566
28,283
19,310
5,059
$14,251
$2.06
$2.04
$0.28
$50,395
1,808
350
499
53,052
11,815
1,837
515
14,167
38,885
2,330
36,555
1,406
118
5,484
645
7,653
15,437
654
905
8,996
25,992
18,216
7,791
$10,425
$1.52
$1.49
$0.24
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Shaping the future together
Annual Meeting
Tuesday, May 21, 2019, 6 PM at the Franciscan Center for Music Education and
Performance at Silver Lake College, 2406 S. Alverno Rd., Manitowoc
Corporate Headquarters
2400 S. 44th St., PO Box 700, Manitowoc WI 54221-0700, (920) 686-9998,
1-888-686-9998
Transfer Agent
First Illinois Shareholder Services, 225 N. Water St., Decatur, IL 62523, 1-888-740-5512
Stock Listing
History Performance
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 icon)
Investor Relations
Shareholders, analysts, the news media and others desiring general information about
the company or its subsidiaries may contact Glen Stiteley, CFO, at (920) 686-5658 or
gstiteley@ICBK.com.
Growth Since Inception
We initially raised capital at a split
adjusted $1.60 per share in 1996
$25
$20
$15
$10
$5
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www.ICBK.com
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 for-
ward-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 for-
ward-looking information contained here. In
addition, forward-looking statements generally
can be identified by the use of forward-look-
ing terminology such as “may,” “plan,” “seek,”
“comfortable with,” “will,” “expect,” “intend,”
“estimate,” “anticipate,” “believe,” “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 herein include those
identified in County Bancorp, Inc.’s most recent
annual report on Form 10-K and other filings
with the Securities and Exchange Commission.
Any forward-looking information presented
herein is made only as of the date of publica-
tion of this annual report, and we do not un-
dertake any obligation to update or revise any
forward-looking information to reflect changes
in assumptions, the occurrence of unanticipat-
ed events or otherwise.
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Member FDIC
Member FDIC
1