Loading, Please Wait...

CST: 18/08/2019 01:41:30   

County Bancorp, Inc. Announces Net Income of $3.7 Million for the Second Quarter of 2019

30 Days ago

Highlights

  • Net income of $3.7 million for the second quarter of 2019; $7.5 million for the six months ended June 30, 2019
  • Diluted earnings per share of $0.53 for the second quarter of 2019; $1.07 for the six months ended June 30, 2019
  • Book value per share of $23.03 as of June 30, 2019, an increase of $0.67, or 3.0%, since March 31, 2019, and an increase of $1.53, or 7.1%, since December 31, 2018
  • Client deposits (demand deposits, money market accounts, and certificates of deposit) increased $39.6 million, or 5.2%, since March 31, 2019, and increased $96.3 million, or 13.7%, since June 30, 2018.
  • Brokered and national deposits decreased $62.9 million during the first half of 2019, a reduction of 13.4% since December 31, 2018

MANITOWOC, Wis., July 18, 2019 (GLOBE NEWSWIRE) -- County Bancorp, Inc. (the “Company”; Nasdaq: ICBK), the holding company of Investors Community Bank (the “Bank”), an agricultural and commercial community bank headquartered in Manitowoc, Wisconsin, reported net income of $3.7 million, or $0.53 diluted earnings per share, for the second quarter of 2019, compared to net income of $3.8 million, or $0.54 diluted earnings per share, for the first quarter of 2019 and $3.9 million, or $0.55 diluted earnings per share, for the second quarter of 2018.  This represents an annualized return on average assets of 1.00% for the three and six months ended June 30, 2019, compared to 1.04% and 1.10% for the three and six months ended June 30, 2018, respectively.

“We are very pleased with our most recent quarter and first half earnings, even though we still face some credit challenges in our agricultural portfolio due to the recent prolonged low milk price cycle,” stated Tim Schneider, President of the Company and CEO of the Bank.  “We are starting to see an improved milk price environment: the 12-month forward-looking average for class III milk increased from $16.00 to $17.04 per hundredweight on the Chicago Mercantile Exchange from March 31 to June 30, 2019. These improvements are encouraging, but it is going to take some time to see an impact on our overall classified assets.”

Schneider continued, “As previously announced, we are committed to reducing our wholesale funding, and we were able to make significant progress toward that in the first half of 2019, primarily through selling loan participations. We are also very pleased with our client deposit growth year-over-year and during this quarter.”

Loans and Total Assets

Total assets at June 30, 2019 were $1.5 billion, a decrease of $6.7 million, or 0.5%, and a decrease of $34.2 million, or 2.3%, over total assets as of March 31, 2019 and June 30, 2018, respectively.  Total loans were $1.1 billion at June 30, 2019, which represents a $35.1 million, or 3.0%, decrease over total loans at March 31, 2019, and a decrease of $33.7 million, or 2.9%, over total loans at June 30, 2018.

We continued to focus on participating loans off balance sheet during the second quarter of 2019.  During the second quarter of 2019, participated loans that the Company continued to service increased to $695.6 million at June 30, 2019 which was an increase of $20.4 million, or 3.0%, and $67.2 million, or 10.7%, over participated loans that the Company serviced at March 31, 2019 and June 30, 2018, respectively.

Deposits

Total deposits at June 30, 2019 were $1.2 billion, an increase of $28.9 million, or 2.5%, and a decrease of $5.3 million, or 0.4%, over total deposits as of March 31, 2019 and June 30, 2018, respectively.  Client deposits (demand deposits, money market accounts, and certificates of deposit) increased $39.6 million, or 5.2%, since March 31, 2019, and increased $96.3 million, or 13.7%, since June 30, 2018. 

Due to the increases in loan participations and client deposit growth, the Company decreased its reliance on brokered deposits and national certificates of deposit to $406.0 million at June 30, 2019.  This represents a decrease of $10.7 million, or 2.6%, from March 31, 2019, and a decrease of $101.5 million, or 20.0%, from June 30, 2018. 

During the second quarter of 2019, the Company also paid off a portion of its FHLB borrowings.  At June 30, 2019, borrowings from the FHLB totaled $59.4 million, which was a decrease of $41.0 million, or 40.8%, from March 31, 2019, and a decrease of $48.8 million, or 45.1%, from June 30, 2018.

Net Interest Income and Margin

Net interest income was $10.4 million for the three months ended June 30, 2019, which was a $0.1 million, or 1.2%, decrease from the three months ended March 31, 2019, and a $0.1 million, or 0.9%, increase from the three months ended June 30, 2018.  The primary reason for the second quarter decline in net interest income compared to the preceding quarter was the increase in loan participations that resulted in lower average loan balances during the period.

For the six months ended June 30, 2019, net interest income improved 1.9% to $21.0 million from $20.6 million for the six months ended June 30, 2018.

Net interest margin was 2.92% for the three months ended June 30, 2019, which was a decrease from 2.94% for the three months ended March 31, 2019, and an increase from 2.87% for the three months ended June 30, 2018.  A slight decline in net interest margin was realized over the linked quarter because while loan yields improved 12 basis points, the average loan balance declined by 2.6% and interest rates on deposits increased 10 basis points on a steady average balance.  Year-over-year second quarter net interest margin increased by five basis points primarily due to a 42 basis point improvement in loan yields, which was partially offset by a 42 basis point increase in cost of funds.

For the six months ended June 30, 2019, net interest margin improved slightly to 2.93% from 2.91% for the six months ended June 30, 2018, primarily as a result of a 45 basis point improvement in loan yields that was partially offset by a 46 basis point increase in cost of funds.

Non-Interest Income and Expense

Non-interest income for the three months ended June 30, 2019 increased by $0.1 million, or 5.0%, to $2.9 million compared to the three months ended March 31, 2019.  During the second quarter, the Company continued to reduce the valuation allowance on its loan servicing rights portfolio, which resulted in an increase of $0.1 million of loan servicing rights for the quarter.  The reduction of the valuation allowance is expected to continue throughout the remaining quarters of 2019.

Non-interest income for the three months ended June 30, 2019 increased $0.6 million, or 24.7%, compared to $2.3 million for the three months ended June 30, 2018.  The year-over-year increase was primarily due to the reduction of the valuation allowance discussed above, increases in loan servicing fees and rights which were the result of higher volumes of loans being serviced, and a $0.3 million gain on the sale of securities during the second quarter of 2019.

For the six months ended June 30, 2019, non-interest income improved to $5.6 million, an increase of $1.3 million, or 29.4%, over the six months ended June 30, 2018.  The increase was primarily the result of the reduction in the valuation allowance on the loan servicing rights portfolio and security sales discussed above, as well as the reduction of the allowance for unused commitments of $0.5 million, included in other non-interest income, in the first quarter of 2019.  The Company evaluated the need for this allowance during the first quarter of 2019 and concluded there was no sufficient evidence that represented credit loss inherent in these commitments to substantiate the necessity of this reserve and concluded to eliminate it.  The Company will continue to evaluate credit risk on these off-balance sheet commitments going forward. 

Non-interest expense for the three months ended June 30, 2019 increased by $0.1 million, or 1.9%, to $7.4 million compared to the three months ended March 31, 2019, and increased $0.5 million, or 7.3%, compared to the three months ended June 30, 2018.  Employee compensation and benefits decreased $0.3 million, or 6.3%, in the linked quarter due to lower payroll taxes resulting from social security tax limits being met during the first quarter, but was offset by a $0.3 million writedown of an agricultural OREO property.  The year-over-year increase was primarily due to a $0.3 million write-down on an OREO property during the second quarter of 2019 and small increases in information processing, professional fees, and business development.

Asset Quality

Non-performing assets as a percent of total assets decreased to 1.94% at June 30, 2019, from 2.07% at March 31, 2019, and 2.30% at June 30, 2018.  At June 30, 2019, non-performing assets were $28.8 million, a decrease of $2.1 million, or 6.8%, and $6.1 million, or 17.5%, at March 31, 2019 and June 30, 2018, respectively.  During the second quarter of 2019, $4.1 million of non-performing loans was transferred to OREO; however, two OREO properties were sold during the quarter resulting in a net increase of $3.7 million in OREO during the quarter ended June 30, 2019.

Substandard loans were $117.8 million at June 30, 2019, compared to $107.5 million at March 31, 2019 and $93.8 million at June 30, 2018.  Adverse classified asset ratio (a non-GAAP measure) increased to 53.21% at June 30, 2019 from 48.59% and 47.34% at March 31, 2019 and June 30, 2018, respectively.  The increase in substandard loans and the adverse classified ratio was the result of the prolonged strain of Wisconsin’s agricultural economy; however, we are actively managing these credits, and we are optimistic about the industry’s outlook as there was a 6.5% increase in the 12-month future price of class III milk from March 31, 2019 to June 30, 2019.

A provision for loan losses of $0.9 million was recorded for the three months ended June 30, 2019 compared to a provision of $0.8 million and $0.5 million for the three months ended March 31, 2019 and June 30, 2018, respectively.  For the six months ended June 30, 2019, a provision for loan losses was $1.6 million compared to $0.6 million for the six months ended June 30, 2018.  The increase in provision in the linked quarter and year-over- year was directly related the $2.1 million in net charge-offs that took place during the second quarter of 2019 which related to a commercial real estate relationship that lost its primary tenant, as well as an increase in special mention and substandard loans during the second quarter of 2019.

The allowance for loan losses was $16.3 million at June 30, 2019 compared to $16.5 million at December 31, 2018.  The $0.2 million decrease in the allowance during the first six months of 2019 was the result of a reduction in general reserves due to the decreases in total loans.

Conference Call

The Company will host an earnings call today, July 18, 2019, at 1:30 p.m., CDT, conducted by Timothy J. Schneider, President, and Glen L. Stiteley, CFO.  The earnings call will be broadcast over the Internet on the Company’s website at http://investors.icbk.com.  From the top menu, select “News”, then “Event Calendar.”  In addition, you may listen to the Company’s earnings call via telephone by dialing (844) 835-9984.  Investors should visit the Company’s website or call in to the dial-in number set forth above at least 10 minutes prior to the scheduled start of the call.  

A replay of the earnings call will be available until July 18, 2020, by visiting the Company’s website at http://investors.icbk.com.

About County Bancorp, Inc.

County Bancorp, Inc., a Wisconsin corporation and registered bank holding company founded in May 1996, and its wholly-owned subsidiary Investors Community Bank, a Wisconsin-chartered bank, are headquartered in Manitowoc, Wisconsin.  The state of Wisconsin is often referred to as “America’s Dairyland,” and one of the niches it has developed is providing financial services to agricultural businesses statewide, with a primary focus on dairy-related lending.  It also serves business and retail customers throughout Wisconsin, with a focus on northeastern and central Wisconsin.  Its customers are served from its full-service locations in Manitowoc, Appleton, Green Bay, and Stevens Point and its loan production offices in Darlington, Eau Claire, Fond du Lac, and Sheboygan.

Forward-Looking Statements

This press release includes "forward-looking statements” within the meaning of such term in the Private Securities Litigation Reform Act of 1995.  Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond the Company’s control. The Company cautions you that the forward-looking statements presented in this press release are 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 in this press release.  Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "plan," "seek," "will," "expect," "intend," "estimate," "anticipate," "believe" or "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 in this press release include those identified in the Company’s most recent annual report on Form 10-K and subsequent filings with the Securities and Exchange Commission.  Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Investor Relations Contact
Glen L. Stiteley
EVP - CFO, Investors Community Bank
Phone: (920) 686-5658
Email: gstiteley@icbk.com


                               
County Bancorp, Inc.
Consolidated Financial Summary
(Unaudited)
  June 30,
2019
    March 31,
2019
    December
31,
2018
    September
30,
2018
    June 30,
2018
 
       
    (dollars in thousands, except per share data)  
Period-End Balance Sheet:                                        
  Assets                                        
  Cash and cash equivalents   $ 116,251     $ 62,426     $ 61,087     $ 49,996     $ 81,044  
  Securities available for sale, at fair value     158,561       192,210       195,945       190,185       187,505  
  Loans held for sale     7,448       2,750       2,949       13,770       11,468  
  Agricultural loans     713,602       722,107       724,508       714,310       702,426  
  Commercial loans     383,542       403,490       415,672       417,146       407,609  
  Multi-family real estate loans     46,683       52,974       62,321       66,403       65,713  
  Residential real estate loans     3,753       4,172       4,522       4,965       5,437  
  Installment and consumer other     252       220       272       113       339  
  Total loans     1,147,832       1,182,963       1,207,295       1,202,937       1,181,524  
  Allowance for loan losses     (16,258 )     (17,493 )     (16,505 )     (16,143 )     (15,129 )
  Net loans     1,131,574       1,165,470       1,190,790       1,186,794       1,166,395  
  Other assets     70,812       68,532       70,057       74,223       72,465  
  Total Assets   $ 1,484,646     $ 1,491,388     $ 1,520,828     $ 1,514,968     $ 1,518,877  
                                         
  Liabilities and Shareholders' Equity                                        
  Demand deposits   $ 111,022     $ 101,434     $ 121,436     $ 103,862     $ 95,459  
  NOW accounts and interest checking     54,253       49,902       51,779       46,811       51,674  
  Savings     6,621       6,210       5,770       6,616       6,833  
  Money market accounts     239,337       225,975       218,929       208,233       204,332  
  Time deposits     387,899       376,034       356,484       352,531       344,619  
  Brokered deposits     256,475       269,917       308,504       317,291       323,561  
  National time deposits     149,570       146,805       160,445       173,440       183,953  
  Total deposits     1,205,177       1,176,277       1,223,347       1,208,784       1,210,431  
  FHLB advances     59,400       100,400       89,400       102,400       108,200  
  Subordinated debentures     44,781       44,742       44,703       44,663       44,725  
  Other liabilities     12,564       11,952       11,293       11,134       9,439  
  Total Liabilities     1,321,922       1,333,371       1,368,743       1,366,981       1,372,795  
                                         
  Shareholders' equity     162,724       158,017       152,085       147,987       146,082  
  Total Liabilities and Shareholders' Equity   $ 1,484,646     $ 1,491,388     $ 1,520,828     $ 1,514,968     $ 1,518,877  
                                         
Stock Price Information:                                        
  High - Quarter-to-date   $ 18.92     $ 19.69     $ 26.00     $ 28.20     $ 29.26  
  Low - Quarter-to-date   $ 16.24     $ 16.74     $ 17.37     $ 24.29     $ 25.72  
  Market price - Quarter-end   $ 17.09     $ 17.60     $ 17.37     $ 25.10     $ 27.50  
  Book value per share   $ 23.03     $ 22.36     $ 21.50     $ 20.91     $ 20.63  
  Tangible book value per share (1)   $ 22.23     $ 21.54     $ 20.65     $ 20.07     $ 19.77  
  Common shares outstanding     6,717,908       6,709,254       6,709,480       6,694,230       6,693,447  

(1) This is a non-GAAP financial measure.  A reconciliation to GAAP is included below.

                               
    June 30,
2019
    March 31,
2019
    December
31,
2018
    September
30,
2018
    June 30,
2018
 
       
    (dollars in thousands)  
Loans by risk category:                                        
  Sound/Acceptable/Satisfactory/
    Low Satisfactory
  $ 836,988     $ 896,328     $ 908,172     $ 901,643     $ 896,509  
  Watch     167,824       174,642       171,670       171,890       186,399  
  Special Mention     25,255       4,501       6,566       11,036       4,783  
  Substandard Performing     56,336       46,075       65,501       61,851       46,751  
  Substandard Impaired     61,429       61,417       55,386       56,517       47,082  
  Total loans     1,147,832       1,182,963       1,207,295       1,202,937       1,181,524  
  Loans sold with servicing retained     695,629       675,268       661,257       644,879       628,435  
  Total loans and loans sold with
    servicing retained
  $ 1,843,461     $ 1,858,231     $ 1,868,552     $ 1,847,816     $ 1,809,959  
                                         
Non-Performing Assets:                                        
  Nonaccrual loans   $ 20,096     $ 25,880     $ 22,983     $ 27,881     $ 26,305  
  Other real estate owned (2)     8,693       5,019       6,568       7,851       8,607  
  Total non-performing assets   $ 28,789     $ 30,899     $ 29,551     $ 35,732     $ 34,912  
                                         
Performing TDRs not on nonaccrual   $ 28,892     $ 21,111     $ 18,258     $ 11,863     $ 11,173  
                                         
Non-performing assets as a % of total loans     2.51 %     2.61 %     2.45 %     2.97 %     2.95 %
Non-performing assets as a % of total assets     1.94 %     2.07 %     1.94 %     2.36 %     2.30 %
Adverse classified asset ratio (1)     53.21 %     48.59 %     57.12 %     51.89 %     47.34 %
Allowance for loan losses as a % of
  nonaccrual loans
    80.90 %     67.59 %     71.81 %     57.90 %     57.51 %
Allowance for loan losses as a % of total
  loans
    1.42 %     1.48 %     1.37 %     1.34 %     1.28 %
Net charge-offs (recoveries) quarter-to-date   $ 2,111     $ (236 )   $ 1,210     $ (21 )   $ 16  
Provision for loan loss quarter-to-date   $ 876     $ 752     $ 1,572     $ 993     $ 533  

(1) This is a non-GAAP financial measure.  A reconciliation to GAAP is included below.
(2) The quarters ending June 30, 2018 and September 30, 2018, do not include $0.4 million of bank property transferred from premises and equipment, which is not considered a non-performing asset.  For the quarter ended December 31, 2018, and all subsequent quarters, that bank property was considered classified due to the length of the holding period.


       
    For the Three Months Ended  
    June 30,
2019
    March 31,
2019
    December
31,
2018
    September
30,
2018
    June 30,
2018
 
       
    (dollars in thousands, except per share data)  
Selected Income Statement Data:                                        
Interest and Dividend Income                                        
Loans, including fees   $ 15,484     $ 15,501     $ 15,536     $ 15,113     $ 14,366  
Taxable securities     1,177       1,186       1,168       945       982  
Tax-exempt securities     82       175       183       344       14  
Federal funds sold and other     465       264       223       249       401  
Total interest and dividend
  income
    17,208       17,126       17,110       16,651       15,763  
                                         
Interest Expense                                        
Deposits     5,678       5,424       5,273       4,980       4,600  
FHLB advances and other borrowed
  funds
    415       464       427       411       487  
Subordinated debentures     683       678       667       656       338  
Total interest expense     6,776       6,566       6,367       6,047       5,425  
Net interest income     10,432       10,560       10,743       10,604       10,338  
Provision for loan losses     876       752       1,572       993       533  
Net interest income after provision
  for loan losses
    9,556       9,808       9,171       9,611       9,805  
                                         
Non-Interest Income                                        
Services charges     407       353       470       394       445  
Gain (loss) on sale of loans, net     26       (1 )     54       41       45  
Loan servicing fees     1,563       1,519       1,553       1,521       1,486  
Loan servicing right origination     346       228       7       (46 )     127  
Income on OREO     40       26       83       96       45  
Gain on sale of securities     341       -       -       -       -  
Other     164       625       153       151       168  
Total non-interest income     2,887       2,750       2,320       2,157       2,316  
                                         
Non-Interest Expense                                        
Employee compensation and
  benefits
    4,199       4,482       4,059       4,394       4,114  
Occupancy     283       389       245       332       278  
Information processing     591       563       641       529       529  
Professional fees     417       399       497       351       359  
Business development     347       325       259       258       260  
OREO expenses     121       51       106       46       152  
Writedown of OREO     250       -       688       81       104  
Net loss (gain) on sale of OREO     9       (136 )     (54 )     (28 )     (149 )
Depreciation and amortization     328       337       408       302       324  
Other     901       895       689       758       966  
Total non-interest expense     7,446       7,305       7,538       7,023       6,937  
  Income before income taxes     4,997       5,253       3,953       4,745       5,184  
  Income tax expense     1,293       1,491       1,123       1,228       1,334  
  NET INCOME   $ 3,704     $ 3,762     $ 2,830     $ 3,517     $ 3,850  
                                         
  Basic   $ 0.53     $ 0.54     $ 0.41     $ 0.51     $ 0.56  
  Diluted   $ 0.53     $ 0.54     $ 0.40     $ 0.50     $ 0.55  
  Dividends declared   $ 0.05     $ 0.05     $ 0.07     $ 0.07     $ 0.07  


     For the Three Months Ended  
    June 30,
2019
    March 31,
2019
    December
31,
2018
    September
30,
2018
    June 30,
2018
 
       
    (dollars in thousands, except share data)  
Other Data:                                        
  Return on average assets     1.00 %     1.00 %     0.75 %     0.94 %     1.04 %
  Return on average shareholders'
    equity
    9.24 %     9.78 %     7.58 %     9.51 %     10.63 %
  Return on average common
    shareholders' equity (1)
    9.41 %     9.99 %     7.70 %     9.75 %     10.96 %
  Efficiency ratio (1)     55.38 %     55.91 %     52.85 %     54.62 %     55.18 %
  Tangible common equity to
    tangible assets (1)
    10.10 %     9.73 %     9.14 %     8.90 %     8.75 %
                                         
Common Share Data:                                        
  Net income from continuing
    operations
  $ 3,704     $ 3,762     $ 2,830     $ 3,517     $ 3,850  
  Less:  Preferred stock dividends     118       117       111       106       99  
   Income available to common
     shareholders
  $ 3,586     $ 3,645     $ 2,719     $ 3,411     $ 3,751  
                                         
  Weighted average number of common
    shares issued
    7,159,072       7,153,174       7,127,544       7,108,202       7,101,978  
  Less: Weighted average treasury
    shares
    443,920       443,729       443,694       443,140       442,102  
  Less: Weighted average non-
    vested restricted units
    awards
    30,483       16,260       28,701       29,537       30,692  
  Weighted average number of
    common shares outstanding
    6,745,635       6,725,705       6,712,551       6,694,599       6,690,568  
  Effect of dilutive options     20,731       21,323       45,116       63,346       79,368  
  Weighted average number of
    common shares outstanding
    used to calculate diluted
    earnings per common share
    6,766,366       6,747,028       6,757,667       6,757,945       6,769,936  

(1) This is a non-GAAP financial measure.  A reconciliation to GAAP is included below.


       
      For the Three Months Ended  
Non-GAAP Financial Measures:   June 30,
2019
    March 31,
2019
    December
31,
2018
    September
30,
2018
    June 30,
2018
 
       
    (dollars in thousands)  
Return on average common
  shareholders' equity
  reconciliation:
                                       
  Return on average shareholders'
    equity
    9.24 %     9.78 %     7.58 %     9.51 %     10.63 %
  Effect of excluding average
    preferred shareholders'
    equity
    0.17 %     0.21 %     0.12 %     0.24 %     0.33 %
  Return on average common
    shareholders' equity
    9.41 %     9.99 %     7.70 %     9.75 %     10.96 %
                                         
Efficiency ratio GAAP to non-GAAP
  reconciliation:
                                       
  Non-interest expense   $ 7,446     $ 7,305     $ 7,538     $ 7,023     $ 6,937  
  Less: net gain (loss) on sales and
    write-downs of OREO
    (259 )     136       (634 )     (53 )     45  
  Adjusted non-interest expense
    (non-GAAP)
  $ 7,187     $ 7,441     $ 6,904     $ 6,970     $ 6,982  
                                         
  Net interest income   $ 10,432     $ 10,560     $ 10,743     $ 10,604     $ 10,338  
  Non-interest income     2,887       2,750       2,320       2,157       2,316  
  Less: net gain on sales of
    securities
    (341 )     -       -       -       -  
  Operating revenue   $ 12,978     $ 13,310     $ 13,063     $ 12,761     $ 12,654  
  Efficiency ratio     55.38 %     55.91 %     52.85 %     54.62 %     55.18 %

               

                               
    June 30,
2019
    March 31,
2019
    December
31,
2018
    September
30,
2018
    June 30,
2018
 
       
    (dollars in thousands, except per share data)  
Tangible book value per share and
  tangible common equity to tangible
  assets reconciliation:
                                       
  Common equity   $ 154,724     $ 150,017     $ 144,085     $ 139,987     $ 138,082  
  Less: Goodwill     5,038       5,038       5,038       5,038       5,038  
  Less: Core deposit intangible, net of
    amortization
    354       430       513       603       701  
    Tangible common equity (non-GAAP)   $ 149,332     $ 144,549     $ 138,534     $ 134,346     $ 132,343  
  Common shares outstanding     6,717,908       6,709,254       6,709,480       6,694,230       6,693,447  
  Tangible book value per share   $ 22.23     $ 21.54     $ 20.65     $ 20.07     $ 19.77  
                                         
  Total assets   $ 1,484,646     $ 1,491,388     $ 1,520,828     $ 1,514,968     $ 1,518,877  
  Less: Goodwill     5,038       5,038       5,038       5,038       5,038  
  Less: Core deposit intangible, net of
    amortization
    354       430       513       603       701  
  Tangible assets (non-GAAP)   $ 1,479,254     $ 1,485,920     $ 1,515,277     $ 1,509,327     $ 1,513,138  
  Tangible common equity to tangible assets     10.10 %     9.73 %     9.14 %     8.90 %     8.75 %
                                         
Adverse classified asset ratio:                                        
  Substandard loans   $ 117,765     $ 107,492     $ 120,887     $ 118,368     $ 93,833  
  Less: Impaired performing restructured loans     (8,276 )     (6,382 )     (5,078 )     (13,657 )     (2,081 )
  Net substandard loans   $ 109,489     $ 101,110     $ 115,809     $ 104,711     $ 91,752  
  Other real estate owned     8,693       5,019       6,568       7,851       8,607  
  Substandard unused commitments     1,458       976       1,625       1,191       959  
  Less: Substandard government guarantees     (7,821 )     (5,864 )     (7,111 )     (9,374 )     (8,356 )
  Total adverse classified assets (non-GAAP)   $ 111,819     $ 101,241     $ 116,891     $ 104,379     $ 92,962  
                                         
  Total equity (Bank)   $ 196,036     $ 191,287     $ 185,458     $ 180,359     $ 177,911  
  Accumulated other comprehensive loss
    (gain) on available for sale securities
    (2,166 )     (436 )     2,221       4,152       2,795  
  Allowance for loan losses     16,258       17,493       16,505       16,143       15,129  
  Allowance for unused commitments     -       -       475       510       522  
  Adjusted total equity (non-GAAP)   $ 210,128     $ 208,344     $ 204,659     $ 201,164     $ 196,357  
  Adverse classified asset ratio     53.21 %     48.59 %     57.12 %     51.89 %     47.34 %


       
    For the Three Months Ended  
    June 30, 2019     March 31, 2019     June 30, 2018  
    Average
Balance (1)
    Income/
Expense
    Yields/
Rates
    Average
Balance (1)
    Income/
Expense
    Yields/
Rates
    Average
Balance (1)
    Income/
Expense
    Yields/
Rates
 
       
    (dollars in thousands)  
Assets                                                                        
Investment securities   $ 176,237     $ 1,259       2.86 %   $ 192,963     $ 1,361       2.82 %   $ 158,260     $ 996       2.52 %
Loans (2)     1,177,071       15,484       5.26 %     1,207,240       15,501       5.14 %     1,187,719       14,367       4.84 %
Interest bearing deposits due from
  other banks
    73,769       465       2.52 %     36,227       264       2.92 %     100,646       400       1.59 %
Total interest-earning assets   $ 1,427,077     $ 17,208       4.82 %   $ 1,436,430     $ 17,126       4.77 %   $ 1,446,625     $ 15,763       4.36 %
                                                                         
Allowance for loan losses     (17,782 )                     (17,005 )                     (14,918 )                
Other assets     76,806                       78,654                       57,878                  
Total assets   $ 1,486,101                     $ 1,498,079                     $ 1,489,585                  
                                                                         
Liabilities                                                                        
Savings, NOW, money market,
  interest checking
  $ 315,940     $ 1,316       1.67 %   $ 295,418     $ 1,184       1.60 %   $ 279,958     $ 789       1.13 %
Time deposits     770,554       4,363       2.26 %     797,476       4,240       2.13 %     819,037       3,811       1.86 %
Total interest-bearing deposits   $ 1,086,494     $ 5,679       2.09 %   $ 1,092,894     $ 5,424       1.99 %   $ 1,098,995     $ 4,600       1.67 %
Other borrowings     1,204       13       4.47 %     844       11       5.27 %     1,167       14       4.79 %
FHLB advances     78,653       401       2.04 %     92,900       453       1.95 %     117,327       473       1.61 %
Junior subordinated debentures     44,762       683       6.11 %     44,606       678       6.08 %     25,547       338       5.29 %
Total interest-bearing
  liabilities
  $ 1,211,113     $ 6,776       2.24 %   $ 1,231,244     $ 6,566       2.13 %   $ 1,243,036     $ 5,425       1.75 %
                                                                         
Non-interest-bearing deposits     102,432                       101,532                       93,876                  
Other liabilities     12,154                       11,362                       7,829                  
Total liabilities   $ 1,325,699                     $ 1,344,138                     $ 1,344,741                  
                                                                         
Shareholders' equity     160,402                       153,941                       144,844                  
Total liabilities and equity   $ 1,486,101                     $ 1,498,079                     $ 1,489,585                  
                                                                         
Net interest income           $ 10,432                     $ 10,560                     $ 10,338          
Interest rate spread (3)                     2.59 %                     2.64 %                     2.61 %
Net interest margin (4)                     2.92 %                     2.94 %                     2.87 %
Ratio of interest-earning assets to
  interest-bearing liabilities
    1.18                       1.17                       1.16                  

(1) Average balances are calculated on amortized cost.
(2) Includes loan fee income, nonaccruing loan balances, and interest received on such loans.
(3) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average total interest-earning assets.


       
    For the Six Months Ended  
    June 30, 2019     June 30, 2018  
    Average
Balance (1)
    Income/
Expense
    Yields/
Rates
    Average
Balance (1)
    Income/
Expense
    Yields/
Rates
 
       
    (dollars in thousands)  
Assets                                                
Investment securities   $ 186,076     $ 2,620       2.82 %   $ 147,553     $ 1,785       2.42 %
Loans (2)     1,192,073       30,985       5.20 %     1,180,294       28,057       4.75 %
Interest bearing deposits due from other
  banks
    55,102       729       2.65 %     87,012       614       1.41 %
Total interest-earning assets   $ 1,433,251     $ 34,334       4.79 %   $ 1,414,859     $ 30,456       4.31 %
                                                 
Allowance for loan losses     (17,396 )                     (14,323 )                
Other assets     76,613                       52,395                  
Total assets   $ 1,492,468                     $ 1,452,931                  
                                                 
Liabilities                                                
Savings, NOW, money market, interest
  checking
  $ 307,903       2,500       1.62 %   $ 278,889       1,448       1.04 %
Time deposits     781,672       8,602       2.20 %     783,202       6,948       1.77 %
Total interest-bearing deposits   $ 1,089,575     $ 11,102       2.04 %   $ 1,062,091     $ 8,396       1.58 %
Other borrowings     1,025       25       4.80 %     1,226       30       4.94 %
FHLB advances     85,737       854       1.99 %     119,187       941       1.58 %
Junior subordinated debentures     44,742       1,361       6.09 %     20,566       481       4.68 %
Total interest-bearing liabilities   $ 1,221,079     $ 13,342       2.19 %   $ 1,203,070     $ 9,848       1.64 %
                                                 
Non-interest-bearing deposits     102,050                       98,728                  
Other liabilities     11,797                       7,698                  
Total liabilities   $ 1,334,926                     $ 1,309,496                  
                                                 
Shareholders' equity     157,542                       143,435                  
Total liabilities and equity   $ 1,492,468                     $ 1,452,931                  
                                                 
Net interest income           $ 20,992                     $ 20,608          
Interest rate spread (3)                     2.61 %                     2.67 %
Net interest margin (4)                     2.93 %                     2.91 %
Ratio of interest-earning assets to interest-
  bearing liabilities
    1.17                       1.18                  
                                                 

(1) Average balances are calculated on amortized cost.
(2) Includes loan fee income, nonaccruing loan balances, and interest received on such loans.
(3) Interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(4) Net interest margin represents net interest income divided by average total interest-earning assets.

Is your business listed correctly on America’s largest city directory network of 1,000 portals?