EX-99.3 5 icbk-ex993_10.htm EX-99.3 - PF icbk-ex993_10.htm

Exhibit 99.3

Unaudited Pro Forma Financial Information

The following tables show selected unaudited pro forma financial information about the financial condition and results of operations of County Bancorp, Inc. ("County"), including per share data, after giving effect to the merger with Fox River Valley Bancorp, Inc. ("Fox River Valley") and other pro forma adjustments. The unaudited pro forma financial information assumes that the merger is accounted for under the acquisition method of accounting for business combinations in accordance with GAAP, and that the assets and liabilities of Fox River Valley will be recorded by County at their respective fair values as of the date the merger was completed. The unaudited pro forma consolidated balance sheet gives effect to the transactions as if the transactions had occurred on December 31, 2015. The unaudited pro forma consolidated statement of operations for the year ended December 31, 2015, give effect to the transactions as if the transactions had become effective at January 1, 2015.

The unaudited pro forma consolidated financial information is presented for illustrative purposes only and does not indicate the financial results of the combined company had the companies actually been combined at the beginning of each period presented. The unaudited pro forma condensed combined financial information also does not consider any expense efficiencies, increased revenue or other potential financial benefits of the merger. The adjustments are estimates as of the date hereof and actual amounts are still in the process of being finalized. 

 

 

COUNTY BANCORP, INC. AND SUBSIDIARIES

PROFORMA CONSOLIDATED BALANCE SHEET

December 31, 2015

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

County Bancorp, Inc.

 

 

Fox River Valley Bancorp, Inc.

 

 

Pro Forma Adjustments

 

 

 

 

Pro Forma Combined

 

 

 

(dollars in thousands)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

14,907

 

 

$

60,741

 

 

$

(14,451

)

 

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,456

)

 

B

 

$

55,741

 

Securities available-for-sale, at fair value

 

 

83,281

 

 

 

52,287

 

 

 

(483

)

 

A

 

 

135,085

 

FHLB Stock, at cost

 

 

3,507

 

 

 

374

 

 

 

 

 

 

 

 

 

3,881

 

Loans held for sale

 

 

9,201

 

 

 

-

 

 

 

 

 

 

 

 

 

9,201

 

Loans, net of allowance for loan losses

 

 

737,784

 

 

 

148,318

 

 

 

(4,087

)

 

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,243

 

 

A

 

 

884,258

 

Premises and equipment, net

 

 

7,165

 

 

 

1,730

 

 

 

686

 

 

A

 

 

9,581

 

Loan servicing rights

 

 

8,145

 

 

 

-

 

 

 

 

 

 

 

 

 

8,145

 

Other real estate owned, net

 

 

2,872

 

 

 

2,030

 

 

 

 

 

 

 

 

 

4,902

 

Cash surrender value of bank owned life insurance

 

 

11,155

 

 

 

-

 

 

 

 

 

 

 

 

 

11,155

 

Goodwill

 

 

-

 

 

 

-

 

 

 

5,721

 

 

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(683

)

 

C

 

 

5,038

 

Core deposit intangible

 

 

-

 

 

 

-

 

 

 

1,801

 

 

A

 

 

1,801

 

Deferred tax asset, net

 

 

2,048

 

 

 

2,627

 

 

 

683

 

 

C

 

 

5,358

 

Accrued interest receivable and other assets

 

 

4,824

 

 

 

833

 

 

 

 

 

 

 

 

 

5,657

 

Total assets

 

$

884,889

 

 

$

268,940

 

 

$

(14,026

)

 

 

 

$

1,139,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

70,914

 

 

$

29,599

 

 

 

 

 

 

 

 

$

100,513

 

Interest-bearing

 

 

601,312

 

 

 

203,834

 

 

 

750

 

 

A

 

 

805,896

 

Total deposits

 

 

672,226

 

 

 

233,433

 

 

 

750

 

 

 

 

 

906,409

 

Other borrowings

 

 

3,945

 

 

 

1,530

 

 

 

(1,530

)

 

B

 

 

3,945

 

Advances from FHLB

 

 

66,445

 

 

 

-

 

 

 

 

 

 

 

 

 

66,445

 

Capital lease payable

 

 

-

 

 

 

325

 

 

 

 

 

 

 

 

 

325

 

Subordinated debentures

 

 

-

 

 

 

3,926

 

 

 

(3,926

)

 

B

 

 

-

 

Subordinated debentures - Trust preferred

 

 

12,372

 

 

 

3,610

 

 

 

(574

)

 

A

 

 

15,408

 

            Accrued interest payable and other liabilities

 

 

7,877

 

 

 

1,875

 

 

 

 

 

 

 

 

 

9,752

 

Total liabilities

 

 

762,865

 

 

 

244,699

 

 

 

(5,280

)

 

 

 

 

1,002,284

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Small Business Lending Fund redeemable preferred stock

 

$

15,000

 

 

$

-

 

 

 

 

 

 

 

 

$

15,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock

 

 

8,000

 

 

 

-

 

 

 

 

 

 

 

 

 

8,000

 

Common stock

 

 

19

 

 

 

1,634

 

 

 

(1,634

)

 

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7

 

 

A

 

 

26

 

Surplus

 

 

34,717

 

 

 

14,695

 

 

 

(14,695

)

 

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,249

 

 

A

 

 

48,966

 

Retained earnings

 

 

68,825

 

 

 

8,295

 

 

 

(6,602

)

 

A

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

70,518

 

Treasury stock

 

 

(4,758

)

 

 

-

 

 

 

 

 

 

 

 

 

(4,758

)

Accumulated other comprehensive income

 

 

221

 

 

 

(383

)

 

 

(71

)

 

A

 

 

(233

)

Total shareholders' equity

 

 

107,024

 

 

 

24,241

 

 

 

(8,746

)

 

 

 

 

122,519

 

Total liabilities and shareholders' equity

 

$

884,889

 

 

$

268,940

 

 

$

(14,026

)

 

 

 

$

1,139,803

 

 

 

 

Notes to Pro Forma Consolidated Balance Sheet (unaudited)

 

Adjustments made in the preparation of the unaudited pro forma consolidated balance sheet are as follows:

 

 

(A)

Entry to record fair value purchase accounting and purchase price consideration of $28,707 with approximately 50% cash and 50% County common stock issued to Fox River Valley shareholders based on 712,830(1) shares issued at $20.00 per share(2) and $0.01 par value per share.

 

County Bancorp common shares issued - Par Value

 

$

7

 

Surplus on shares issued

 

 

14,249

 

     Total capital consideration

 

 

14,256

 

 

 

 

 

 

Cash consideration paid to shareholders

 

 

14,451

 

     Total purchase price consideration

 

$

28,707

 

 

 

(1)

The total merger consideration set forth in the merger agreement was $28.9 million.  The number of shares issued was based on 50% of the total merger consideration to be paid in stock of $14.45 million, using the volume weighted average closing price of County common stock for the ten trading days ending on the second trading day preceding the closing day of $20.27 per share.  Cash was paid in lieu of fractional shares.

 

(2)

The NASDAQ Official Closing Price on May 13, 2016.

 

 

(B)

Entry to pay-off outstanding line-of-credit and subordinated debt in connection with merger.

 

 

(C)

Entry to record a deferred tax asset on the fair value adjustment related to the acquired assets and liabilities and the assumed deferred tax assets.

 

COUNTY BANCORP, INC. AND SUBSIDIARIES

PROFORMA CONSOLIDATED STATEMENT OF OPERATIONS

For the Year Ended December 31, 2015

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

County Bancorp, Inc.

 

 

Fox River Valley Bancorp, Inc.

 

 

Pro Forma Adjustments

 

 

 

 

Pro Forma Combined

 

 

 

(dollars in thousands, except per share data)

 

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, including fees

 

$

32,301

 

 

$

6,689

 

 

$

739

 

 

D

 

$

39,729

 

Taxable securities

 

 

964

 

 

 

1,070

 

 

 

105

 

 

D

 

 

2,139

 

Tax-exempt securities

 

 

437

 

 

 

36

 

 

 

 

 

 

 

 

 

473

 

Federal funds sold and other

 

 

65

 

 

 

75

 

 

 

 

 

 

 

 

 

140

 

Total interest and dividend income

 

 

33,767

 

 

 

7,870

 

 

 

844

 

 

 

 

 

42,481

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

6,238

 

 

 

1,620

 

 

 

(707

)

 

D

 

 

7,151

 

FHLB advances and other borrowed funds

 

 

882

 

 

 

60

 

 

 

 

 

 

 

 

 

942

 

Subordinated debentures

 

 

400

 

 

 

480

 

 

 

 

 

 

 

 

 

880

 

Capitalized lease

 

 

-

 

 

 

23

 

 

 

 

 

 

 

 

 

23

 

Total interest expense

 

 

7,520

 

 

 

2,183

 

 

 

(707

)

 

 

 

 

8,996

 

Net interest income

 

 

26,247

 

 

 

5,687

 

 

 

1,551

 

 

 

 

 

33,485

 

Provision for loan losses

 

 

(1,019

)

 

 

823

 

 

 

 

 

 

 

 

 

(196

)

Net interest income after provision for loan losses

 

 

27,266

 

 

 

4,864

 

 

 

1,551

 

 

 

 

 

33,681

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services charges

 

 

1,039

 

 

 

118

 

 

 

 

 

 

 

 

 

1,157

 

Gain on sale of loans, net

 

 

429

 

 

 

-

 

 

 

 

 

 

 

 

 

429

 

Loan servicing fees

 

 

5,323

 

 

 

-

 

 

 

 

 

 

 

 

 

5,323

 

Other

 

 

894

 

 

 

228

 

 

 

 

 

 

 

 

 

1,122

 

Total non-interest income

 

 

7,685

 

 

 

346

 

 

 

-

 

 

 

 

 

8,031

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

10,769

 

 

 

2,257

 

 

 

 

 

 

 

 

 

13,026

 

Occupancy

 

 

338

 

 

 

411

 

 

 

 

 

 

 

 

 

749

 

Write-down of other real estate owned

 

 

256

 

 

 

-

 

 

 

 

 

 

 

 

 

256

 

Other

 

 

6,095

 

 

 

1,576

 

 

 

546

 

 

E

 

 

8,217

 

Total non-interest expense

 

 

17,458

 

 

 

4,244

 

 

 

546

 

 

 

 

 

22,248

 

Income before income taxes

 

 

17,493

 

 

 

966

 

 

 

1,005

 

 

 

 

 

19,464

 

Income tax expense

 

 

6,519

 

 

 

361

 

 

 

610

 

 

F

 

 

7,490

 

NET INCOME

 

$

10,974

 

 

$

605

 

 

$

395

 

 

 

 

$

11,974

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME PER SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.85

 

 

 

 

 

 

 

 

 

 

 

 

$

1.80

 

Diluted

 

$

1.82

 

 

 

 

 

 

 

 

 

 

 

 

$

1.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average of common shares outstanding - basic

 

 

5,664,678

 

 

 

 

 

 

 

 

 

 

 

 

 

6,377,508

 

Weighted average of common shares outstanding - diluted

 

 

5,777,802

 

 

 

 

 

 

 

 

 

 

 

 

 

6,490,632

 

 


Notes to Pro Forma Consolidated Statement of Operations (unaudited)

 

Adjustments made in the preparation of the unaudited pro forma consolidated statement of operations are as follows:

 

 

(D)

Adjustments to reflect the amortization of purchase accounting adjustments based on the average lives of the corresponding asset and liability yield adjustments.  The expected average lives are as follows: loans - 173 months; securities - 206 months; certificates of deposit - 14 months; IRAs - 11 months.

 

 

(E)

Adjustment to reflect the amortization of the core deposit intangible recognized in the acquisition over the estimated 66 month period benefit.

 

 

(F)

Adjustment to reflect the income tax expense on pro forma income statement adjustments at the statutory tax rate of 39.35%.