MOLINE, Ill., July 24, 2007 (PRIME NEWSWIRE) -- QCR Holdings, Inc. (Nasdaq:QCRH) today announced that earnings for the second quarter ended June 30, 2007 were $1.3 million, resulting in fully diluted earnings per share for common shareholders of $0.23. Earnings and earnings per share results for the first quarter of 2007 were $1.3 million and $0.22, respectively. For the same quarter one year ago, the Company reported earnings of $1.2 million, however, the prior year results were significantly impacted by a one-time gain on the sale of a foreclosed asset that increased after-tax earnings by $513 thousand. The Company's second quarter 2006 core earnings would have been $690 thousand without this one-time gain.
Through the first six months of 2007, the Company's total assets have increased at an annualized rate of approximately 10%, or $61.2 million, to $1.33 billion from $1.27 billion at December 31, 2006. During this same period, net loans/leases increased at an annualized rate of more than 11%, or $53.9 million, to $1.00 billion from $950.1 million at December 31, 2006. Total deposits decreased slightly during the six month period by $17.8 million to $857.6 million at June 30, 2007 when compared to $875.4 million at December 31, 2006. Stockholders' equity increased to $72.5 million at June 30, 2007 as compared to $70.9 million at December 31, 2006.
Quarter-to-quarter net interest income increased by $479 thousand, or 6%, and noninterest income increased $471 or 15%. A large portion of the improved revenue results was offset by increases in the provision for loan losses of $418 thousand and in noninterest expenses of $387 thousand. The quarter-to-quarter increase in provision for loan losses was the result of a few isolated loan quality issues at Quad City Bank & Trust and Rockford Bank & Trust. The 4% increase in noninterest expenses from quarter-to-quarter was primarily due to increases in salaries and employee benefits and in advertising and marketing. The primary contributor to the increase in advertising and marketing expense was First Wisconsin Bank & Trust which incurred $92 thousand of this expense during its first full quarter of operation.
"We are pleased with our continued progress on improving the Company's net interest margin and the quarter over quarter increase in combined net interest income and noninterest income of nearly $1 million," stated Mr. Douglas M. Hultquist, President and CEO. "Additionally, we continued to see solid loan and lease growth and eclipsed $1 billion in total loans and leases outstanding. Our ability to grow loans and leases at this annualized rate was a very positive result as we have been focusing on improved loan yields during the first six months of 2007," he added.
First quarter results of the Company's primary subsidiaries were as follows:
* Quad City Bank & Trust, the Company's first subsidiary bank, had total consolidated assets of $836.5 million at June 30, 2007, which was an increase of $9.9 million from $826.6 million at December 31, 2006. At June 30, 2007, Quad City Bank & Trust had net loans/leases of $624.9 million, which was nearly consistent with the December 31, 2006 level, while deposits declined 6% to $514.2 million. The bank realized after- tax net income of $2.2 million for the second quarter of 2007, which was an increase of $199 thousand from $2.0 million for the first quarter of 2007. At June 30, 2007, year-to-date earnings for the bank improved $623 thousand, or 18%, from one year ago. * Cedar Rapids Bank & Trust, which opened in 2001, had total assets of $350.3 million at June 30, 2007, which was an increase of $7.7 million from December 31, 2006. At the end of the second quarter of 2007, Cedar Rapids Bank & Trust had net loans of $260.1 million for an increase of $17.9 million from the end of 2006, while deposits of $234.9 million reflected a decrease of 4% since year-end. After-tax net income for Cedar Rapids Bank & Trust for the second quarter of 2007 was $632 thousand, which was an increase of $94 thousand from $538 thousand for the first quarter of 2007. At June 30, 2007, year-to-date earnings for the bank improved $416 thousand, or 56%, from one year ago. * Rockford Bank & Trust, which opened in 2005, had total assets of $118.5 million at June 30, 2007, which was an increase of $27.9 million, or 31%, in Rockford market assets from December 31, 2006. At the end of the second quarter of 2007, Rockford Bank & Trust had net loans of $94.5 million and deposits of $95.2 million, which were increases in the Rockford market from December 31, 2006 of 39% and 36%, respectively. After-tax net losses for Rockford Bank & Trust for the second quarter of 2007 were $269 thousand, which was an increase of $30 thousand from the Rockford market losses of $239 thousand for the first quarter of 2007. At June 30, 2007, year-to-date losses for the Rockford market improved $149 thousand, or 23%, from one year ago. * First Wisconsin Bank & Trust, which began operations in 2006 as a branch of Rockford Bank & Trust, had total assets of $35.7 million at June 30, 2007, which was an increase of $19.0 million in Milwaukee market assets from December 31, 2006. At the end of the second quarter of 2007, First Wisconsin Bank & Trust had net loans of $27.3 million or an increase of 70% in the Milwaukee market from the end of 2006 and deposits of $17.3 million or an increase of 3% in the Milwaukee market since year-end. After-tax net losses for First Wisconsin Bank & Trust for the second quarter of 2007 were $303 thousand, which was an increase of $26 thousand from Milwaukee market losses of $277 thousand for the first quarter of 2007. * In August 2005, the Company acquired M2 Lease Funds, LLC, as a subsidiary of Quad City Bank & Trust. At June 30, 2007, M2 Lease Funds had total assets of $65.3 million, which was an increase of $9.0 million, or 16%, from December 31, 2006. Pretax net income for M2 Lease Funds for the second quarter of 2007 was $381 thousand, which was an improvement of $62 thousand from the first quarter of 2007.
"Net income for the first six months of 2007 improved $536 thousand over the same period one year ago," noted Todd Gipple, Executive Vice President and Chief Financial Officer. He added, "More significantly, net interest income increased by $2.8 million, or 19%, and 'core' noninterest income increased by more than $1 million from a year ago when you eliminate last year's one-time gain on the sale of a foreclosed asset."
"Nonperforming assets at June 30, 2007 were $7.4 million, which decreased slightly from $7.5 million at March 31, 2007 and now represent 0.55% of total assets," stated Mr. Gipple. "While nonperforming assets have been reduced over the past quarter and since one year ago, we did make a modest increase in the provision for loan and lease losses in the second quarter as compared to the first quarter provision expense due to some slight changes in the levels of watch credits in the bank portfolios. As always, the maintenance of our credit quality remains a strong focus. Management regularly monitors the Company's loan/lease portfolio and the level of allowance for loan/lease losses." Mr. Gipple concluded, "The Company's allowance for loan/lease losses to total loans/leases was 1.15% at June 30, 2007, which was up slightly from 1.12% at both March 31, 2007 and June 30, 2006."
QCR Holdings, Inc., headquartered in Moline, Illinois, is a multi-bank holding company, which serves the Quad City, Cedar Rapids, Rockford and Milwaukee communities through its wholly owned subsidiary banks. Quad City Bank and Trust Company, which is based in Bettendorf, Iowa and commenced operations in 1994, Cedar Rapids Bank and Trust Company, which is based in Cedar Rapids, Iowa and commenced operations in 2001, Rockford Bank and Trust Company, which is based in Rockford, Illinois and commenced operations in 2005, and First Wisconsin Bank & Trust, which began operations in 2007, provide full-service commercial and consumer banking and trust and asset management services. The Company also engages in credit card processing through its wholly owned subsidiary, Quad City Bancard, Inc., based in Moline, Illinois and commercial leasing through its 80% owned subsidiary, M2 Lease Funds, LLC, based in Milwaukee, Wisconsin.
Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company's management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "predict," "suggest," "appear," "plan," "intend," "estimate," "annualize," "may," "will," "would," "could," "should" or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.
A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local and national economy; (ii) the economic impact of any future terrorist threats and attacks, and the response of the United States to any such threats and attacks; (iii) changes in state and federal laws, regulations and governmental policies concerning the Company's general business; (iv) changes in interest rates and prepayment rates of the Company's assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the loss of key executives or employees; (viii) changes in consumer spending; (ix) unexpected results of our strategy to establish denovo banks in new markets; (x) unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission.
QCR HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) As of ------------------------------------------------- June 30, March 31, December 31, June 30, 2007 2007 2006 2006 ---------- ---------- ---------- ---------- SELECTED BALANCE (dollars in thousands, except share data) SHEET DATA Total assets $1,332,886 $1,303,823 $1,271,675 $1,156,572 Securities $ 204,645 $ 180,007 $ 194,774 $ 184,503 Total loans/leases $1,015,766 $ 990,865 $ 960,747 $ 867,085 Allowance for estimated loan/ lease losses $ 11,681 $ 11,075 $ 10,612 $ 9,744 Total deposits $ 857,666 $ 877,839 $ 875,447 $ 804,103 Total stockholders' equity $ 72,514 $ 72,367 $ 70,883 $ 56,175 Common stockholders' equity $ 59,640 $ 59,493 $ 57,998 $ 56,175 Common shares outstanding 4,581,376 4,565,158 4,560,629 4,548,256 Book value per common share $ 13.02 $ 13.03 $ 12.72 $ 12.35 Closing stock price $ 15.86 $ 15.46 $ 17.66 $ 17.24 Market capitalization $ 72,661 $ 70,577 $ 80,541 $ 78,412 Market price/book value 121.83% 118.63% 138.87% 139.59% Full time equivalent employees 334 330 329 333 Tier 1 leverage capital ratio 6.99% 7.06% 7.21% 6.68% QCR HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) As of -------------------------------------------------- June 30, March 31, December 31, June 30, 2007 2007 2006 2006 ---------- ---------- ---------- ---------- ANALYSIS OF LOAN (dollars in thousands) DATA Nonaccrual loans/ leases $ 6,721 $ 6,663 $ 6,538 $ 7,316 Accruing loans/ leases past due 90 days or more 637 793 755 150 Other real estate owned -- 80 93 318 ---------- ---------- ---------- ---------- Total nonperforming assets $ 7,358 $ 7,536 $ 7,386 $ 7,784 Net charge-offs / (recoveries) (calendar year-to- date) $ 162 $ (56) $ 1,556 $ 35 Loan/lease mix: Commercial loans $ 792,175 $ 769,864 $ 747,231 $ 676,579 Direct financing leases 62,678 59,231 53,765 43,656 Residential real estate loans 83,162 85,744 81,482 75,456 Installment and other consumer loans 77,751 76,026 78,269 71,394 ---------- ---------- ---------- ---------- Total loans/ leases $1,015,766 $ 990,865 $ 960,747 $ 867,085 ANALYSIS OF DEPOSIT DATA Deposit mix: Noninterest- bearing $ 118,997 $ 121,723 $ 124,184 $ 126,018 Interest-bearing 738,669 756,116 751,263 678,085 ---------- ---------- ---------- ---------- Total deposits $ 857,666 $ 877,839 $ 875,447 $ 804,103 Interest-bearing deposit mix: Nonmaturity deposits $ 338,746 $ 344,159 $ 334,009 $ 306,645 Certificates of deposit 340,270 348,329 345,847 317,308 Brokered certificates of deposit 59,653 63,628 71,407 54,132 ---------- ---------- ---------- ---------- Total interest- bearing deposits $ 738,669 $ 756,116 $ 751,263 $ 678,085 QCR HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) For the Quarter Ended ------------------------------------ June 30, March 31, June 30, 2007 2007 2006 ---------- ---------- ---------- (dollars in thousands, except per share data) SELECTED INCOME STATEMENT DATA Interest income $ 21,046 $ 19,942 $ 16,223 Interest expense 12,233 11,608 8,970 ---------- ---------- ---------- Net interest income 8,813 8,334 7,253 Provision for loan/lease losses 825 406 352 ---------- ---------- ---------- Net interest income after provision for loan/lease losses 7,988 7,928 6,901 Noninterest income 3,599 3,128 3,596 Noninterest expense 9,588 9,201 8,682 ---------- ---------- ---------- Income before taxes 1,999 1,855 1,815 Minority interest in income of consolidated subsidiary 143 91 48 Income tax expense 545 501 564 ---------- ---------- ---------- Net income $ 1,311 $ 1,263 $ 1,203 Preferred stock dividends 268 268 -- ---------- ---------- ---------- Net income available to common stockholders $ 1,043 $ 995 $ 1,203 Earnings per common share (basic) $ 0.23 $ 0.22 $ 0.26 Earnings per common share (diluted) $ 0.23 $ 0.22 $ 0.26 Earnings per common share (basic) LTM * $ 0.58 $ 0.61 $ 0.94 AVERAGE BALANCES Assets $1,321,244 $1,286,150 $1,105,624 Deposits $ 868,436 $ 865,603 $ 759,828 Loans/leases $1,004,869 $ 975,044 $ 817,612 Total stockholders' equity $ 73,374 $ 71,734 $ 55,971 Common stockholders' equity $ 60,500 $ 58,856 $ 55,971 KEY RATIOS Return on average assets (annualized) 0.40% 0.39% 0.44% Return on average common equity (annualized) 8.67% 8.58% 8.60% Price earnings ratio LTM * 27.34 x 25.34 x 18.34 x Net interest margin (TEY) 2.94% 2.87% 2.90% Nonperforming assets / total assets 0.55% 0.58% 0.67% Net charge-offs / average loans/leases 0.02% -0.01% 0.00% Allowance / total loans/leases 1.15% 1.12% 1.12% Efficiency ratio 77.25% 80.28% 80.03% For the Six Months Ended ------------------------ June 30, June 30, 2007 2006 ---------- ---------- SELECTED INCOME STATEMENT DATA Interest income $ 40,988 $ 31,092 Interest expense 23,841 16,722 ---------- ---------- Net interest income 17,147 14,370 Provision for loan/lease losses 1,231 895 ---------- ---------- Net interest income after provision for loan/lease losses 15,916 13,475 Noninterest income 6,727 6,392 Noninterest expense 18,790 16,876 ---------- ---------- Income before taxes 3,853 2,991 Minority interest in income of consolidated subsidiary 234 101 Income tax expense 1,046 853 ---------- ---------- Net income $ 2,573 $ 2,037 Preferred stock dividends 536 -- ---------- ---------- Net income available to common stockholders $ 2,037 $ 2,037 Earnings per common share (basic) $ 0.45 $ 0.44 Earnings per common share (diluted) $ 0.45 $ 0.44 Earnings per common share (basic) LTM * AVERAGE BALANCES Assets $1,303,697 $1,081,117 Deposits $ 867,018 $ 749,298 Loans/leases $ 989,956 $ 790,825 Total stockholders' equity $ 72,554 $ 55,449 Common stockholders' equity $ 59,678 $ 55,449 KEY RATIOS Return on average assets (annualized) 0.39% 0.38% Return on average common equity (annualized) 8.62% 7.35% Price earnings ratio LTM * 27.34 x 18.34 x Net interest margin (TEY) 2.90% 2.94% Nonperforming assets / total assets 0.55% 0.67% Net charge-offs / average loans/leases 0.02% 0.00% Allowance / total loans/leases 1.15% 1.12% Efficiency ratio 78.71% 81.28% * LTM: Last twelve months QCR HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) (dollars in thousands, except share data) For the Quarter Ended ---------------------------------- June 30, March 31, June 30, 2007 2007 2006 --------- --------- --------- ANALYSIS OF NONINTEREST INCOME Merchant credit card fees, net of processing costs $ 424 $ 382 $ 492 Trust department fees 940 919 741 Deposit service fees 677 579 479 Gain on sales of loans, net 414 275 287 Securities gains (losses), net -- -- (71) Gains on sale of foreclosed assets (1) 2 745 Earnings on cash surrender value of life insurance 196 204 163 Investment advisory and management fees 389 376 363 Other 560 391 397 --------- --------- --------- Total noninterest income $ 3,599 $ 3,128 $ 3,596 ANALYSIS OF NONINTEREST EXPENSE Salaries and employee benefits $ 5,917 $ 5,555 $ 5,241 Professional and data processing fees 964 928 768 Advertising and marketing 384 238 384 Occupancy and equipment expense 1,208 1,219 1,275 Stationery and supplies 140 155 168 Postage and telephone 253 254 248 Bank service charges 142 141 143 Insurance 246 166 153 Loss on disposal of fixed assets -- 239 -- Other 334 306 302 --------- --------- --------- Total noninterest expenses $ 9,588 $ 9,201 $ 8,682 WEIGHTED AVERAGE SHARES Common shares outstanding (a) 4,574,648 4,564,664 4,543,169 Incremental shares from assumed conversion: Options and Employee Stock Purchase Plan 26,307 25,202 45,215 --------- --------- --------- Adjusted weighted average shares (b) 4,600,955 4,589,866 4,588,384 For the Six Months Ended ------------------------ June 30, June 30, 2007 2006 --------- --------- ANALYSIS OF NONINTEREST INCOME Merchant credit card fees, net of processing costs $ 806 $ 988 Trust department fees 1,859 1,522 Deposit service fees 1,256 944 Gain on sales of loans, net 689 492 Securities gains (losses), net -- (214) Gains on sale of foreclosed assets 1 750 Earnings on cash surrender value of life insurance 400 413 Investment advisory and management fees 765 664 Other 951 833 --------- --------- Total noninterest income $ 6,727 $ 6,392 ANALYSIS OF NONINTEREST EXPENSE Salaries and employee benefits $ 11,472 $ 10,160 Professional and data processing fees 1,893 1,559 Advertising and marketing 622 627 Occupancy and equipment expense 2,426 2,525 Stationery and supplies 294 337 Postage and telephone 507 473 Bank service charges 284 279 Insurance 412 286 Loss on disposal of fixed assets 239 -- Other 641 630 --------- --------- Total noninterest expenses $ 18,790 $ 16,876 WEIGHTED AVERAGE SHARES Common shares outstanding (a) 4,569,656 4,576,755 Incremental shares from assumed conversion: Options and Employee Stock Purchase Plan 7,764 47,722 --------- --------- Adjusted weighted average shares (b) 4,577,420 4,624,477 (a) Denominator for Basic Earnings Per Share (b) Denominator for Diluted Earnings Per Share