Cultivating
our Future
2 0 1 9 - 2 0 A N N U A L R E P O R T / I N V E S T O R S . I C B K . C O M
Parent company of Investors Community Bank
Parent company of Investors Community Bank
Cultivating our future
We
initially started writing this column a few months back, when
things were a little different here and in most other parts of the globe
as well. COVID-19 was something occurring in another country
that no one could’ve imagined would bring such a tsunami of
change into our world.
But as things evolved, we knew our report to you needed to be
on more than just finances. Because what is happening today is
less about the bottom line and more about how banks are helping
their employees and customers get through this crisis. So in ad-
dition to our financial reporting, we wanted to provide an update
on how COVID-19 is impacting us and what we are doing about
it. We’ll start with that.
We have had a pandemic disaster recovery plan in place for a
number of years, based on requirements from our regulatory
bodies. Until now, we have never known for sure, outside of lim-
ited testing, whether it would work. We are pleased to say that we
have been enormously successful in this implementation. 90% of
our staff has been working remotely for over a month now (as of
this writing April 23, 2020). We have seen no drop off in pro-
ductivity or customer service with this move. While the personal
connections are temporarily lost, we also implemented a Cisco
WebEx videoconferencing system about a year ago, and this has
been a real game changer for our teams to stay connected and for
remotely communicating with our customers.
Our job as a community bank has always been to support the
communities we do business in. At no other time has this been
tested and rang more true than now. Our banking teams, whether
it be the front line Tellers and Personal Bankers, the Commercial
and Ag Banking teams, the Electronic Banking teams or the Cash
Parent company of Investors Community Bank
Management and Treasury teams, have all stepped up to this challenge. As
you know, the banking system was charged with implementing the US Small
Business Administration’s Paycheck Protection Program. ICB has
attacked the challenge with limited guidance on the front end to
successfully approve and fund nearly $100 million for our business
and ag customers in our communities and saved more than 12,000
jobs. This is truly where our teams have shined.
At this time, no one can predict what impact COVID-19 will have
on our customers’ businesses, and subsequently to our financial
performance. We can say that your bank came into this crisis with
a very strong capital base, which is always the last line of defense
for banks. We have continued to prudently underwrite credit and
have maintained a solid level of on-balance sheet liquidity. We
have always lived by the philosophy of Soundness, Profitability
then Growth. We know that this ultra-low interest rate environ-
ment will most likely squeeze our net interest margin and this
novel epidemic will probably see some businesses fail. We are pre-
pared for that, which is why we bolstered our loan loss provision
in the first quarter to protect against increased losses. Depending
upon how long this virus impacts economic activity, we may need
to do more in future quarters.
We will all get through this unprecedented time and hopefully
come out the other side better because of it.
2019 performance
2019 was again another record year from a profitability stand-
point, outpacing last year’s net income: $16.5 million in 2019 as
compared to $14.3 million in 2018. We also grew client deposits
CONTINUED
William Censky
Chairman of the Board
County Bancorp, Inc.
Timothy Schneider
President, County
Bancorp, Inc.;
CEO, Investors
Community Bank
Parent company of Investors Community Bank
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I N V E S T O R S . I C B K . C O M
Parent company of Investors Community BankParent company of Investors Community Bank
2 0 1 9 - 2 0 A N N U A L R E P O R T / I N V E S T O R S . I C B K . C O M
by $81.2 million and reduced our Classified Asset levels to 39.85% of our
Tier 1 capital. Non-interest income remained strong with a record non-in-
terest income year at $13.4 million. To better explain the strategy in 2019, we
embarked on reducing our reliance on wholesale funding. This was accom-
plished by increasing our client deposits as well as by participating loans, both
on the agricultural and commercial side, to reduce this funding reliance. This
created an overall decline in our balance sheet levels, which was intentional
given the above.
Capital levels all remain strong at
this point. Since year end, we have
announced an increase in our com-
mon dividend to 7 cents per share
from 5 cents per share last year, an
increase of 40%. We also recent-
ly announced a share repurchase
program. Both of these moves were
done to create more shareholder
value. The Executive Management
team and Board continue to strive
for long term shareholder value, as
we are collectively 23% owners of
the Company.
Looking ahead to 2020
(Most of these initiatives will be predicated on a
reasonably quick COVID turnaround)
As we have moved into 2020, we
have three primary goals, not much
different than 2019: 1) Increasing
core deposit generation to allow for on-balance sheet loan growth, as well as
continuing to diversify our reliance on wholesale funding. 2) Further reduc-
ing our Classified Assets and Non-Performing asset levels. 3) Continue to
drive solid shareholder value through bottom line performance. Here’s how
we plan to do this:
1. Core deposit generation: We have had a keen focus on client deposits for
at least three years now. Our team has been driving growth in this area by
asking more often when these opportunities exist with a client’s business
and personal deposits. We have built out a strong Treasury and Cash
Management team across our footprint. We understand for the bank to
grow in the future it will require a stronger base of core deposits.
2. Reducing Classified Assets and Non-Performing Assets: In early results,
based on 2019 financial information as part of our credit review process,
we have seen improvement
in our credit quality met-
rics. We continue to focus
on improving our credit
quality where we can. Much
of this continued trend will
depend upon how deep
and how long COVID-19
persists.
3. Driving shareholder value
through bottom line per-
formance: We continue to
manage our net interest
margin aggressively. One
of the tools we are imple-
menting is new customer
profitability software called
Axiom. This will allow us
to analyze a client’s full
relationship with the bank,
which will assist in ensuring
appropriate loan pricing. We also had a very strong year in Non-Interest
Income generation in 2019, primarily through the origination and sale of
secondary market loans as well as participations of mainly ag loans. Our
Crop Insurance division also continues to increase crop insurance com-
missions year over year. Finally, we continue to manage our non-interest
expense with a disciplined approach maintaining a strong efficiency ratio.
CONTINUED
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2 0 1 9 - 2 0 A N N U A L R E P O R T / I N V E S T O R S . I C B K . C O M
We recently got back into the residential mortgage business and will be build-
ing on that further when we introduce a program called Concierge Banking
later this year. We have felt for some time that not having the full suite of ser-
vices available to our customers was potentially a barrier to the bank having
a full customer relationship. We are excited about the opportunities this will
present for new non-interest income as well as gathering more client deposits.
Through our strategic planning process our Board has reiterated that we
have a very solid niche in agricultural lending, and we want to continue to
pursue opportunities in this space, both dairy and other diversified agricul-
ture. We have been very successful in the ag marketplace for 23 years and
feel we should continue to pursue strong operations in diversified agriculture
throughout the state. To accomplish this, we have added additional agri-
cultural bankers in the past number of months. These are very experienced
bankers in the ag industry and we felt it was time to be opportunistic.
We have hired a strong team of commercial bankers as well in all of our
markets. They continue to seek commercial relationship opportunities in our
footprint and are helping drive much of our client deposit growth.
These are just a few of the initiatives for 2020. Rest assured your team at
County Bancorp, Inc. and Investors Community Bank are committed to
remaining strong and independent and providing solid overall shareholder
returns. Thank you for your support over the past 23 years!
William Censky
Tim Schneider
A B O U T C O U N T Y B A N C O R P , I N C .
CBI Annual Meeting
Virtual meeting on Tuesday, June 16, 2020, 2 PM. Details in the annual meeting notice and proxy.
Parent company of Investors Community Bank
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
County Bancorp, Inc. common stock is traded on the Nasdaq Global Market under the symbol ICBK.
Shareholder Website
Investors.ICBK.com
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.
Member FDIC
Member FDIC
3
S E L E C T E D F I N A N C I A L H I G H L I G H T S *
COUNTY BANCORP, INC.
AND SUBSIDIARIES
December 31, 2019 and 2018
(Unaudited)
*Additional financial information is available
upon request or can be viewed at Investors.
ICBK.com
**This is a non-GAAP measure. Refer to our
Form 10-K filed with the SEC on March 13,
2020 for a reconciliation to the most
comparable GAAP measurement.
Cultivating our Future
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
2019
(Dollars in thousands except per share data)
$66,332
25,550
40,782
__ 423
40,359
13,393
32,684
4,616
$16,452
$2.37
$2.36
$0.20
$24.32
$23.54
6,747,581
6,768,925
6,734,132
1.13%
10.10%
12.48%
2.93%
2.58%
0.92%
2.25%
1.33%
59.92%
8.47%
2.99%
1.47%
49.30%
0.15%
2.65%
11.90%
18.70%
14.68%
11.54%
$64,217
22,262
41,955
3,195
38,760
8,833
28,283
5,059
$14,251
$2.06
$2.04
$0.28
$21.50
$20.68
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%
9.16%
4
C O N S O L I D AT E D B A L A N C E S H E E T S
COUNTY BANCORP, INC.
AND SUBSIDIARIES
December 31, 2019 and 2018
(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 $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,
2019
2018
(Dollars in thousands except per share data)
$129,011
158,733
1,628
2,151
1,020,506
13,603
12,509
5,521
18,302
1,453
5,038
225
10,099
$ 1,378,779
$138,489
__ 962,953
1,101,442
794
44,400
44,858
15,256
1,206,750
$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
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
54,122
113,111
(5,030)
__ 1,798
172,029
$1,378,779
28
53,162
98,475
(5,030)
(2,351)
152,284
$1,521,027
Cultivating our Future
5
C O N S O L I D AT E D S TAT E M E N T S O F O P E R AT I O N S
COUNTY BANCORP, INC.
AND SUBSIDIARIES
For the year ended December 31,
2019 and 2018 (Unaudited)
For the year ended December 31,
2019
2018
(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
$59,706
4,586
257
1,783
66,332
21,457
1,350
2,743
25,550
40,783
_ 423
40,359
1,657
146
9,998
1,592
13,393
19,112
1,402
873
5,996
32,684
21,068
4,616
$16,452
$2.37
$2.36
$0.20
$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
1,087
5,666
28,283
19,310
5,059
$14,251
$2.06
$2.04
$0.28
Cultivating our Future
6
2 0 1 9 - 2 0 A N N U A L R E P O R T / I N V E S T O R S . I C B K . C O M
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.
Jacob Eisen, ConnexPay LLC
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.
Central Wisconsin Regional Consulting Board
E. John Buzza, Buzza Dreier & Johnson LLC
Jeffery Ebel, Ebel Consulting LLC
Richard Okray, Okray Family Farms, Inc.
Bill Mullins, Mullins Cheese, Inc.
Kenneth Turzinski, TYRI Americas
Parent company of Investors Community Bank
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 infor-
mation 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 information 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,” “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 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.
7
Investors Community Bank Officers (as of 4/21/2020)
Trever J. Athorp
Nicole M. Bahn
Tony J. Betley
Mark R. Binversie
Julie Blaha
William C. Censky
Kevin Coffeen
David A. Coggins
Elsa C. Condon
William C. Deppiesse
Anne Denissen
Thomas D. Detienne
Kristina Dewitt
David J. Diedrich
John R. Fillingim
Steven J. Fleming
Jennifer L. Foote
Curtis L. Gerrits
Tracy Gomoluch
William C. Hodgkiss
Brian J. Hoskens
Michael J. Hostak
Jeffrey L. Jagodinsky
Frank Joachim
Matthew K. Kasdorf
David D. Kohlmeyer
Cari A. Larsen
Matthew R. Lemke
Mark D. Ludtke
Mark C. Maurer
Timothy S. McTigue
Lori A. Megow
Jennifer M. Menzynski
Mark A. Miller
Thomas J. Pennings
Renee A. Petersen
Sarah E. Peterson
Sandra M. Retzki
Craig C. Rogan
JoAnn M. Rutta
Alison Schaus
Amy L. Schmitting
Christopher J. Schneider
Timothy J. Schneider
Scott V. Schroeter
Robert A. Seal
Roger P. Sinkula
Sharon A. Slager
James J. Smidel
Karl C. Spaay
Brooke R. Sprang
Katelin R. Steege
Mark J. Sterr
Kristy L. Stiefvater
Glen L. Stiteley
Debbie L. Suettinger
Rose K. Thompson
Susan M. Van De Hey
Jason Wery
Laura A. Wiegert
Cyrene N. Wilke
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
Vice President - Sr. Ag Banking Officer
Executive Vice President – Chief Banking Officer
Vice President - Ag Banking Officer
Vice President – Sr. Business Banking Officer
Vice President - Treasury Management
Vice President – Market President – SE Region
Vice President - Consumer & Mortgage
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
Assistant Vice President - Ag Credit Manager
Senior Vice President – Business Banking
Vice President – Sr. Ag Banking Officer
Vice President – Information Technology
Vice President – Business Banking Officer
Vice President - Assistant Treasurer
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
Assistant Vice President - Sr. Appraisal Manager
Executive Vice President – Chief Risk Officer & Bank Counsel / Secretary
Vice President – Sr. Business Banking Officer
Vice President – Electronic Banking Manager
Vice President – Credit Administration Manager
Vice President – Sr. Business Banking Officer
Vice President - Ag Banking Officer
Assistant Vice President – Banking Services Manager
Assistant Vice President - Assistant Controller
Assistant Vice President - Deposit Operations Manager
Vice President – Sr. Ag Banking Officer
Chief Executive Officer
Assistant Vice President - Ag Banking Officer
Vice President – Business Banking Officer
Assistant Vice President – Ag Banking Officer
Assistant Vice President – Governmental Guarantee Loan Program
Assistant Vice President – Ag Banking Officer
Assistant Vice President - Business Credit Manager
Vice President – Human Resources
Assistant Vice President – Ag Credit Officer
Vice President – Sr. Business Banking Officer
Business Banking Officer
Executive Vice President – Chief Financial Officer / Treasurer
Assistant Vice President – Sr. Benefits & Compensation Specialist
Assistant Vice President - Banking Services Manager
Vice President – Loan Operations Manager
Assistant Vice President - Banking Services Manager
Senior Vice President – Marketing
Senior Vice President – Operations