QCR Holdings, Inc. Announces Net Income of $6.7 Million for the Second Quarter of 2016 and Net Income of $13.1 Million Year-to-Date


MOLINE, Ill., July 20, 2016 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ:QCRH) today announced net income of $6.7 million and diluted earnings per share (“EPS”) of $0.53 for the quarter ended June 30, 2016.  This included $231 thousand of acquisition costs (after-tax) related to the previously announced acquisition of Community State Bank.  By comparison, for the quarter ended March 31, 2016, the Company reported net income of $6.4 million and diluted EPS of $0.53.  For the second quarter of 2015, the Company reported a net loss of $524 thousand, and diluted EPS of ($0.05), due to the successful completion of a balance sheet restructuring strategy.

For the six months ended June 30, 2016, the Company reported net income of $13.1 million, and diluted EPS of $1.07.  By comparison, for the six months ended June 30, 2015, the Company reported net income of $3.7 million, and diluted EPS of $0.40.

“Our operating performance for the first half of 2016 has been solid,” commented Douglas M. Hultquist, President and Chief Executive Officer, “as fee income has been strong, organic loan growth continues to exceed expectations, and net interest margin expands further.  Our return on average assets (“ROAA”) has improved to 1.01% for the current quarter.  Although we have achieved our targeted ROAA of 1.00%, we expect to continue to enhance profitability through our ongoing key initiatives.”

Loan and Lease Growth Strong at 6.9% Year-To-Date
Swap Fee Income and Gains on the Sale of Government Guaranteed Loans Total $3.5 Million Year-To-Date

During the second quarter of 2016, the Company’s total assets increased $42.8 million, or 2%, to a total of $2.68 billion, while total loans and leases grew $49.0 million.  The loan and lease growth was funded primarily by called securities and short-term borrowings.  Deposits declined slightly during the quarter, while borrowings increased $34.0 million.  Overnight FHLB borrowings increased $48.4 million, as this funding source is currently more cost effective than fed funds purchased.

“Loan and lease growth for the first six months of the year totaled $124.8 million, or an annualized rate of 13.9%,” commented Todd A. Gipple, Executive Vice President, Chief Operating Officer and Chief Financial Officer.  “Continued loan and lease growth has helped us exceed our targeted annual organic growth rate of 10-12%, while also increasing our loan and lease to total asset ratio to 72%, from 71% as of the end of the first quarter of 2016 and from 67% one year ago.”

“Swap fee income and gains on the sale of government guaranteed loans are off to a very strong start for the first half of 2016, totaling $3.5 million,” said Mr. Gipple.  “We plan to continue executing these types of transactions, as they provide unique and beneficial solutions for our clients.”

Net Interest Margin Expanded 3 Basis Points in Second Quarter

Net interest income totaled $21.0 million for the quarter ended June 30, 2016.  By comparison, net interest income totaled $20.6 million and $18.5 million for the quarters ended March 31, 2016 and June 30, 2015, respectively.  Net interest income totaled $41.6 million for the six months ended June 30, 2016, an increase of 14.7% from the same period of the prior year.

“Net interest margin increased 3 basis points from the prior quarter to 3.62%,” stated Mr. Gipple.  He added, “We were successful in further improving asset yield by reinvesting the funds from called securities into both loans and higher yielding securities.  The improvement created by this change in asset mix more than offset the 4 basis point decrease in loan yield experienced in the second quarter.”

Nonperforming Assets Flat During the Second Quarter

Nonperforming assets (“NPAs”) stayed relatively flat from the prior quarter and the ratio of NPAs to total assets was 0.70% at June 30, 2016, which was down from 0.71% at March 31, 2016 and down from 1.07% a year ago. 

“Although NPAs remained relatively flat from the prior quarter, we remain committed to further improving our asset quality in 2016,” stated Mr. Hultquist. 

The Company’s provision for loan and lease losses totaled $1.2 million for the second quarter of 2016, which was down $875 thousand from the prior quarter, and down $1.2 million compared to the second quarter of 2015.  As asset quality remains strong, provision for loan and lease losses has moderated.  As of June 30, 2016, the Company’s allowance to total loans and leases was 1.46%, which was flat from March 31, 2016 and down slightly from 1.52% at June 30, 2015. 

Capital Levels Remain Strong

The Company’s total risk-based capital ratio was 14.23%, the common equity tier 1 ratio was 11.66% and the tangible common equity to tangible assets ratio increased to 10.10%, all as of June 30, 2016.  For comparison, these respective ratios were 12.68%, 10.11% and 8.74% as of March 31, 2016.  Both the total risk-based capital ratio and the common equity tier 1 ratio are well above the fully phased-in requirements under Basel III.  The increase in the Company’s capital ratios was primarily due to the capital raise executed in the second quarter of 2016, as well as strong earnings.

Acquisition of Community State Bank, Headquartered in Des Moines/Ankeny, Iowa

As previously announced, the Company plans to close the acquisition of Community State Bank during the third quarter, pending regulatory approval by bank regulators and certain customary closing conditions.

Continued Focus on Seven Key Initiatives

The Company continues to focus on the following initiatives in an ongoing effort to continue to improve profitability and drive increased shareholder value:

  • Target loans and leases to total assets ratio in the range of 70-75%
  • Continue to reduce wholesale funding to less than 15% of assets
  • Grow gains on the sale of USDA and SBA loans, and fee income on swaps, to a more significant and consistent component of core revenue
  • Grow wealth management net income by 15% annually
  • Eliminate identified noninterest expenses and manage annual expense growth
  • Return asset quality metrics to better than peer levels
  • Participate as an acquirer in the consolidation taking place in our markets to further boost ROAA, improve efficiency ratio, and increase EPS


About Us

QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company, which serves the Quad City, Cedar Rapids, Cedar Valley, and Rockford communities through its wholly owned subsidiary banks.  Quad City Bank & Trust Company, which is based in Bettendorf, Iowa, and commenced operations in 1994, Cedar Rapids Bank & Trust Company, which is based in Cedar Rapids, Iowa, and commenced operations in 2001, and Rockford Bank & Trust Company, which is based in Rockford, Illinois, and commenced operations in 2005, provide full-service commercial and consumer banking and trust and wealth management services.  Quad City Bank & Trust Company also provides correspondent banking services. In addition, Quad City Bank & Trust Company engages in commercial leasing through its wholly 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, including the Basel III regulatory capital reforms, the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations issued thereunder; (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 integration of acquired entities, including the planned acquisition of Community State Bank; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (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,September 30,June 30, 
  2016  2016  2015  2015  2015  
       
 (dollars in thousands) 
       
CONDENSED BALANCE SHEET      
       
Cash and due from banks$  49,581 $  44,931 $  41,742 $  40,975 $  39,995  
Federal funds sold and interest-bearing deposits   68,432    57,229    56,164    66,684    70,238  
Securities   510,959    537,317    577,109    590,775    592,368  
Net loans/leases   1,894,676    1,846,428    1,771,882    1,730,138    1,689,238  
Core deposit intangible   1,372    1,422    1,471    1,521    1,571  
Goodwill   3,223    3,223    3,223    3,223    3,223  
Other assets   155,191    150,123    141,607    142,539    146,336  
Total assets$   2,683,434  $   2,640,673  $   2,593,198  $   2,575,855  $   2,542,969   
       
Total deposits$  1,973,594 $  1,989,573 $  1,880,666 $  1,855,319 $  1,836,767  
Total borrowings   381,874    347,901    444,162    456,091    456,567  
Other liabilities   52,849    68,056    42,484    43,330    37,938  
Total stockholders' equity   275,117    235,143    225,886    221,115    211,697  
Total liabilities and stockholders' equity$   2,683,434  $   2,640,673  $   2,593,198  $   2,575,855  $   2,542,969   
       
ANALYSIS OF LOAN PORTFOLIO      
Loan/lease mix:      
Commercial and industrial loans$  706,261 $  682,057 $  648,160 $  647,398 $  606,826  
Commercial real estate loans   784,379    766,159    724,369    692,569    696,122  
Direct financing leases   169,928    172,774    173,656    173,304    170,799  
Residential real estate loans   180,482    173,096    170,433    165,061    161,985  
Installment and other consumer loans   73,658    71,842    73,669    69,863    72,448  
Deferred loan/lease origination costs, net of fees   8,065    7,895    7,736    7,477    7,204  
Total loans/leases$  1,922,773 $  1,873,823 $  1,798,023 $  1,755,672 $  1,715,384  
Less allowance for estimated losses on loans/leases   28,097    27,395    26,141    25,534    26,146  
Net loans/leases$   1,894,676  $   1,846,428  $   1,771,882  $   1,730,138  $   1,689,238   
       
ANALYSIS OF SECURITIES PORTFOLIO      
Securities mix:      
U.S. government sponsored agency securities$  88,321 $  132,742 $  213,537 $  247,625 $  256,444  
Municipal securities 302,689  285,009  280,203  265,293  251,992  
Residential mortgage-backed and related securities 116,765  116,452  80,670  74,901  80,844  
Other securities 3,184  3,114  2,699  2,956  3,088  
Total securities$   510,959  $   537,317  $   577,109  $   590,775  $   592,368   
       
ANALYSIS OF DEPOSITS      
Deposit mix:      
Noninterest-bearing demand deposits$  615,764 $  641,859 $  615,292 $  585,300 $  633,370  
Interest-bearing demand deposits   918,036    916,455    886,294    877,642    775,688  
Time deposits 337,584  331,786  309,974  302,978  322,826  
Brokered deposits 102,210  99,473  69,106  89,399  104,883  
Total deposits$   1,973,594  $   1,989,573  $   1,880,666  $   1,855,319  $   1,836,767   
       
ANALYSIS OF BORROWINGS      
Borrowings mix:      
Term FHLB advances$  78,000 $  80,000 $  97,000 $  102,000 $  104,000  
Overnight FHLB advances (1) 118,900  70,500  54,000  31,000  28,500  
Wholesale structured repurchase agreements 100,000  100,000  110,000  115,000  115,000  
Customer repurchase agreements 21,441  52,153  73,873  74,404  118,795  
Federal funds purchased 30,120  11,870  70,790  93,160  49,780  
Junior subordinated debentures 33,413  33,378  38,499  40,527  40,492  
Total borrowings$   381,874  $   347,901  $   444,162  $   456,091  $   456,567   
       
(1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 0.40% 
       

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
 
        
   For the Six Months Ended  
   June 30, June 30,  
    2016   2015   
        
  (dollars in thousands, except per share data) 
        
INCOME STATEMENT      
Interest income $  47,415  $  43,952   
Interest expense    5,809     7,679   
Net interest income     41,606     36,273   
Provision for loan/lease losses    3,271     4,059   
Net interest income after provision for loan/lease losses $   38,335   $   32,214    
        
Trust department fees $  3,088  $  3,144   
Investment advisory and management fees    1,351     1,468   
Deposit service fees    1,878     1,826   
Gain on sales of residential real estate loans    145     182   
Gain on sales of government guaranteed portions of loans    2,482     140   
Swap fee income    1,025     1,120   
Securities gains, net    376     417   
Earnings on bank-owned life insurance    874     912   
Debit card fees    651     493   
Correspondent banking fees    547     605   
Participation service fees on commercial loan participations    457     446   
Fee income from early termination of leases    78     162   
Credit card issuing fees    276     270   
Other      357     498   
Total noninterest income $   13,585   $   11,683    
        
Salaries and employee benefits $  21,718  $  22,126   
Occupancy and equipment expense    3,711     3,660   
Professional and data processing fees    2,990     2,941   
Acquisition costs    355     -    
FDIC insurance, other insurance and regulatory fees    1,284     1,450   
Loan/lease expense    317     512   
Net cost of operation of other real estate    380     29   
Advertising and marketing    820     908   
Postage and communications    474     463   
Stationery and supplies    323     279   
Bank service charges    831     696   
Losses on debt extinguishment, net    83     6,894   
Correspondent banking expense    359     341   
Other     1,053     1,007   
Total noninterest expense $   34,698   $   41,306    
        
Net income before taxes $   17,222   $   2,591    
Income tax expense (benefit)    4,172     (1,063)  
Net income  $   13,050   $   3,654    
        
Basic EPS $  1.08  $  0.41   
Diluted EPS $  1.07  $  0.40   
        
Weighted average common shares outstanding    12,064,349     8,961,327   
Weighted average common and common equivalent shares outstanding    12,235,212     9,098,697   
        

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
        
   For the Quarter Ended
   June 30,March 31,December 31,September 30,June 30,
    2016  2016  2015  2015  2015 
        
   (dollars in thousands, except per share data)
        
INCOME STATEMENT      
Interest income $  23,913 $  23,502 $  22,910 $  23,141 $  22,051 
Interest expense    2,904    2,905    3,024    3,004    3,560 
Net interest income     21,009    20,597    19,886    20,137    18,491 
Provision for loan/lease losses    1,198    2,073    1,177    1,635    2,349 
Net interest income after provision for loan/lease losses $   19,811  $   18,524  $   18,709  $   18,502  $   16,142  
        
        
Trust department fees $  1,512 $  1,576 $  1,455 $  1,532 $  1,511 
Investment advisory and management fees    693    658    721    782    758 
Deposit service fees    947    931    1,003    994    925 
Gain on sales of residential real estate loans    84    60    57    85    96 
Gain on sales of government guaranteed portions of loans    1,604    879    405    760    69 
Swap fee income    168    857    535    63    394 
Securities gains, net    18    358    325    57    -  
Earnings on bank-owned life insurance    480    394    443    407    433 
Debit card fees    344    308    290    290    255 
Correspondent banking fees    245    302    275    311    285 
Participation service fees on commercial loan participations    246    211    218    202    224 
Fee income from early termination of leases    66    12    46    89    76 
Credit card issuing fees    139    137    134    134    136 
Lawsuit settlement    -     -     -     387    -  
Other      216    139    271    276    299 
Total noninterest income $   6,762  $   6,822  $   6,178  $   6,369  $   5,461  
        
        
Salaries and employee benefits $  10,917 $  10,801 $  10,258 $  10,583 $  11,092 
Occupancy and equipment expense    1,885    1,827    1,535    1,864    1,865 
Professional and data processing fees    1,542    1,447    840    1,742    1,471 
Acquisition costs    355    -     -     -     -  
FDIC insurance, other insurance and regulatory fees    650    634    573    702    731 
Loan/lease expense    154    163    281    90    209 
Net cost of operation of other real estate    278    102    (4)   (1,118)   (48)
Advertising and marketing    433    386    532    460    490 
Postage and communications    257    217    252    221    214 
Stationery and supplies    158    165    171    145    137 
Bank service charges    415    416    396    392    359 
Losses on debt extinguishment, net    -     83    291    -     6,894 
Correspondent banking expense    182    177    186    177    165 
Other     518    536    528    655    523 
Total noninterest expense $   17,744  $   16,954  $   15,839  $   15,913  $   24,102  
        
Net income (loss) before taxes $   8,829  $   8,392  $   9,048  $   8,958  $   (2,499)
Income tax expense (benefit)    2,153    2,019    2,263    2,469    (1,974)
Net income (loss) $   6,676  $   6,373  $   6,785  $   6,489  $   (524)
        
Basic EPS $  0.54 $  0.54 $  0.58 $  0.55 $  (0.05)
Diluted EPS $  0.53 $  0.53 $  0.57 $  0.55 $  (0.05)
        
Weighted average common shares outstanding    12,335,077    11,793,620    11,744,495    11,713,993    9,946,744 
Weighted average common and common equivalent shares outstanding   12,516,474    11,953,949    11,926,038    11,875,930    9,946,744 
        

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
 
          
 For the Quarter Ended For the Six Months Ended 
 June 30,March 31,December 31,September 30,June 30, June 30,June 30, 
  2016  2016  2015  2015  2015   2016  2015  
          
 (dollars in thousands, except per share data) 
 
COMMON SHARE DATA         
Common shares outstanding  13,057,368  11,814,911  11,761,083  11,728,911  11,698,578     
Book value per common share (1)$21.07 $19.90 $19.21 $18.85 $18.10     
Tangible book value per common share (2)$20.72 $19.51 $18.81 $18.45 $17.69     
Closing stock price$27.19 $23.79 $24.29 $21.87 $21.76     
Market capitalization$355,030 $281,077 $285,677 $256,511 $254,561     
Market price / book value 129.05% 119.53% 126.47% 116.01% 120.25%    
Market price / tangible book value 131.24% 121.94% 129.15% 118.55% 123.03%    
Earnings per common share (basic) LTM (3)$2.21 $1.62 $1.64 $1.40 $1.36     
Price earnings ratio LTM (3) 12.30 x  14.69 x  14.81 x  15.62 x  16.00 x     
TCE / TA (4) 10.10% 8.74% 8.55% 8.42% 8.15%    
          
          
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY     
Beginning balance$  235,143 $  225,886 $  221,115 $  211,697 $  150,996     
Net income (loss)   6,676    6,373    6,785    6,489    (524)    
Other comprehensive income (loss), net of tax   1,181    2,525    (2,287)   2,256    (2,379)    
Common cash dividends declared   (521)   (471)   (469)   -     (465)    
Proceeds from issuance of 3,680,000 shares of common stock, net of costs   -     -     -     -     63,484     
Proceeds from issuance of 1,215,000 shares of common stock, net of costs   29,829    -     -     -     -      
Other (5)   2,809    830    742    673    585     
Ending balance$   275,117  $   235,143  $   225,886  $   221,115  $   211,697      
          
          
REGULATORY CAPITAL RATIOS (6):         
Total risk-based capital ratio 14.23% 12.68% 13.11% 13.06% 12.92%    
Tier 1 risk-based capital ratio 12.98% 11.45% 11.88% 11.83% 11.66%    
Tier 1 leverage capital ratio 11.18% 9.85% 9.75% 9.73% 9.62%    
Common equity tier 1 ratio 11.66% 10.11% 10.33% 10.16% 9.97%    
          
          
KEY PERFORMANCE RATIOS AND OTHER METRICS         
Return on average assets (annualized) 1.01% 0.98% 1.04% 1.01% -0.08%  1.00% 0.29% 
Return on average total equity (annualized) 10.46% 11.02% 12.14% 11.99% -1.15%  10.73% 4.43% 
Net interest margin (TEY) (7) 3.62% 3.59% 3.41% 3.51% 3.33%  3.61% 3.29% 
Efficiency ratio 63.89% 61.83% 61.22% 61.88% 100.62%  62.87% 86.20% 
Gross loans and leases / total assets 71.65% 70.96% 69.34% 68.16% 67.46%  71.65% 67.46% 
Full-time equivalent employees 410  406  406  406  416   410  416  
          
          
AVERAGE BALANCES          
Assets$2,640,678 $2,602,350 $2,611,276 $2,563,739 $2,518,170  $2,621,514 $2,512,334  
Loans/leases 1,899,932  1,833,950  1,764,275  1,744,043  1,686,068   1,866,941  1,660,887  
Deposits 2,033,116  1,980,056  1,978,737  1,881,604  1,798,787   2,006,586  1,772,996  
Total stockholders' equity   255,391    231,247    223,553    216,453    181,811     243,319    164,975  
          
(1) Includes accumulated other comprehensive income (loss). 
(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets. 
(3) LTM : Last twelve months. 
(4) TCE / TCA : tangible common equity / total tangible assets.  See GAAP to non-GAAP reconciliations. 
(5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation. 
(6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release. 
(7) TEY : Tax equivalent yield 

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
             
ANALYSIS OF NET INTEREST INCOME AND MARGIN
         
             
  For the Quarter Ended
  June 30, 2016 March 31, 2016 June 30, 2015
   Average Balance  Interest Earned or Paid  Average Yield or Cost   Average Balance  Interest Earned or Paid  Average Yield or Cost   Average Balance  Interest Earned or Paid  Average Yield or Cost 
             
  (dollars in thousands)
             
Fed funds sold $  14,174 $  11  0.31% $  17,232 $  13  0.30% $  19,523 $  6  0.12%
Interest-bearing deposits at financial institutions   50,747    62  0.49%    40,635    60  0.59%    45,229    65  0.58%
Securities (1)    505,697    4,573  3.64%    550,371    4,685  3.42%    608,688    4,548  3.00%
Restricted investment securities   14,171    134  3.80%    14,140    131  3.73%    15,083    108  2.87%
Loans (1)  1,899,932    20,497  4.34%  1,833,950  19,955  4.38%  1,686,068    18,541  4.41%
Total earning assets (1)$2,484,721 $  25,277  4.09% $2,456,328 $  24,844  4.07% $2,374,591 $  23,268  3.93%
             
Interest-bearing deposits$  941,856 $  600  0.26% $  925,246 $  615  0.27% $  784,148 $  450  0.23%
Time deposits    425,216    744  0.70%    399,604    675  0.68%    384,895    634  0.66%
Short-term borrowings   50,122    18  0.14%    86,539    43  0.20%    160,479    53  0.13%
Federal Home Loan Bank advances   128,956    416  1.30%    128,436    442  1.38%    173,742    1,002  2.31%
Junior subordinated debentures   33,396    302  3.64%    34,650    305  3.54%    40,475    313  3.10%
Other borrowings    100,008    824  3.31%    101,738    825  3.26%    129,802    1,108  3.42%
Total interest-bearing liabilities$1,679,554 $  2,904  0.70% $1,676,213 $  2,905  0.70% $1,673,541 $3,560  0.85%
             
Net interest income / spread (1) $  22,373  3.39%  $  21,939  3.37%  $  19,708  3.08%
Net interest margin (1)   3.62%    3.59%    3.33%
             
             
  For the Six Months Ended    
  June 30, 2016 June 30, 2015  
   Average Balance  Interest Earned or Paid  Average Yield or Cost   Average Balance  Interest Earned or Paid  Average Yield or Cost     
             
  (dollars in thousands)    
             
Fed funds sold $  15,703 $  23  0.29% $  16,606 $  11  0.13%    
Interest-bearing deposits at financial institutions   45,691    123  0.54%    57,602    142  0.50%    
Securities (1)    528,034    9,257  3.53%    617,261    9,037  2.95%    
Restricted investment securities   14,156    264  3.75%    15,513    250  3.25%    
Loans (1)  1,866,941  40,454  4.36%  1,660,885    36,893  4.48%    
Total earning assets (1)$2,470,525 $ 50,121  4.08% $2,367,867 $  46,333  3.95%    
             
Interest-bearing deposits$  933,551 $  1,214  0.26% $  785,749 $  892  0.23%    
Time deposits    412,410    1,420  0.69%    379,630    1,264  0.67%    
Short-term borrowings   68,331    61  0.18%    170,697    117  0.14%    
Federal Home Loan Bank advances   128,696    858  1.34%    190,109    2,446  2.59%    
Junior subordinated debentures   34,023    606  3.58%    40,458    620  3.09%    
Other borrowings    100,873    1,650  3.29%    139,408    2,340  3.38%    
Total interest-bearing liabilities$1,677,884 $5,809  0.70% $1,706,051 $7,679  0.91%    
             
Net interest income / spread (1) $  44,312  3.38%  $  38,654  3.04%    
Net interest margin (1)   3.61%    3.29%    
             
             
(1) Includes nontaxable securities and loans.  Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 35% tax rate for each period presented. 
            
             

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
 
 As of 
 June 30,March 31,December 31,September 30,June 30, 
  2016  2016  2015  2015  2015  
       
 (dollars in thousands, except per share data) 
       
ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES      
Beginning balance$  27,395 $  26,141 $  25,534 $  26,146 $  23,883  
Provision charged to expense   1,198    2,073    1,177    1,635    2,349  
Loans/leases charged off   (634)   (868)   (1,106)   (2,476)   (536) 
Recoveries on loans/leases previously charged off   138    49    536    229    450  
Ending balance$   28,097  $   27,395  $   26,141  $   25,534  $   26,146   
       
       
NONPERFORMING ASSETS      
Nonaccrual loans/leases$  10,737 $  10,772 $  10,648 $  11,269 $  13,542  
Accruing loans/leases past due 90 days or more   86    47    3    3    46  
Troubled debt restructures - accruing   1,753    1,157    1,054    1,040    1,266  
Total nonperforming loans/leases   12,576    11,976    11,705    12,312    14,854  
Other real estate owned   6,179    6,680    7,151    8,140    11,952  
Other repossessed assets   154    46    246    194    297  
Total nonperforming assets$   18,909  $   18,702  $   19,102  $   20,646  $   27,103   
       
       
ASSET QUALITY RATIOS      
Nonperforming assets / total assets 0.70% 0.71% 0.74% 0.80% 1.07% 
Allowance / total loans/leases (1) 1.46% 1.46% 1.45% 1.45% 1.52% 
Allowance / nonperforming loans/leases (1) 223.42% 228.75% 223.33% 207.39% 176.02% 
       

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
 
             
   For the Quarter Ended For the Six Months Ended 
   June 30, March 31, June 30, June 30, June 30, 
 SELECT FINANCIAL DATA - SUBSIDIARIES  2016   2016   2015   2016   2015  
   (dollars in thousands) 
             
 TOTAL ASSETS           
             
 Quad City Bank and Trust (1) $  1,390,025  $  1,361,607  $  1,299,557      
 m2 Lease Funds, LLC    207,334     205,777     189,951      
 Cedar Rapids Bank and Trust    904,367     885,858     860,403      
 Rockford Bank and Trust    402,157     367,032     363,050      
             
 TOTAL DEPOSITS           
             
 Quad City Bank and Trust (1) $  1,049,049  $  1,029,298  $  929,817      
 Cedar Rapids Bank and Trust    690,377     686,548     649,586      
 Rockford Bank and Trust    296,613     278,129     260,373      
             
 TOTAL LOANS & LEASES           
             
 Quad City Bank and Trust (1) $  968,905  $  950,978  $  832,799      
 m2 Lease Funds, LLC    205,883     205,214     189,311      
 Cedar Rapids Bank and Trust    648,727     628,580     598,002      
 Rockford Bank and Trust    305,141     294,266     285,944      
             
 TOTAL LOANS & LEASES / TOTAL ASSETS           
             
 Quad City Bank and Trust (1)  70%  70%  64%     
 Cedar Rapids Bank and Trust  72%  71%  70%     
 Rockford Bank and Trust  76%  80%  79%     
             
 ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES           
             
 Quad City Bank and Trust (1)  1.31%  1.31%  1.52%     
 m2 Lease Funds, LLC  1.80%  1.80%  1.88%     
 Cedar Rapids Bank and Trust  1.65%  1.66%  1.56%     
 Rockford Bank and Trust  1.53%  1.51%  1.45%     
             
 RETURN ON AVERAGE ASSETS           
             
 Quad City Bank and Trust (1)  1.24%  0.95%  0.19%  1.10%  0.56% 
 Cedar Rapids Bank and Trust  1.46%  1.39%  -0.10%  1.42%  0.46% 
 Rockford Bank and Trust  0.80%  0.66%  0.53%  0.73%  0.53% 
             
 NET INTEREST MARGIN PERCENTAGE (3)           
             
 Quad City Bank and Trust (1)  3.66%  3.60%  3.28%  3.63%  3.20% 
 Cedar Rapids Bank and Trust  3.77%  3.75%  3.63%  3.77%  3.63% 
 Rockford Bank and Trust  3.49%  3.54%  3.38%  3.52%  3.41% 
             
             
(1) Quad City Bank and Trust figures include m2 Lease Funds, LLC, as this entity is wholly-owned and consolidated with the Bank.  m2 Lease Funds, LLC is also presented separately for certain (applicable) measurements.
(2) m2 Lease Funds, LLC net income is post-tax, using an estimated effective tax rate of 35%. 
(3) Includes nontaxable securities and loans.  Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 35% tax rate for each period presented. 
             

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
 
                
  As of     
  June 30, March 31, December 31, September 30, June 30,     
GAAP TO NON-GAAP RECONCILIATIONS  2016   2016   2015   2015   2015      
  (dollars in thousands, except per share data)     
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)               
                
Stockholders' equity (GAAP) $  275,117  $  235,143  $  225,886  $  221,115  $  211,697      
Less: Intangible assets    4,595     4,645     4,694     4,744     4,794      
Tangible common equity (non-GAAP) $  270,522  $  230,498  $  221,192  $  216,371  $  206,903      
                
Total assets (GAAP) $2,683,434  $2,640,673  $2,593,198  $2,575,855  $2,542,969      
Less: Intangible assets    4,595     4,645     4,694     4,744     4,794      
Tangible assets (non-GAAP) $2,678,839  $2,636,028  $2,588,504  $  2,571,111  $2,538,175      
                
Tangible common equity to tangible assets ratio (non-GAAP)  10.10%  8.74%  8.55%  8.42%  8.15%     
                
                
                
  For the Quarter Ended For the Six Months Ended 
  June 30, March 31, December 31, September 30, June 30, June 30, June 30, 
CORE NET INCOME (2)  2016   2016   2015   2015   2015   2016   2015  
                
Net income (loss) (GAAP) $  6,676  $  6,373  $  6,785  $  6,489  $  (524) $  13,050  $  3,654  
                
Less nonrecurring items (post-tax) (3):               
Income:               
Securities gains $  12  $  233  $  211  $  37  $  -  $  245  $  274  
Lawsuit award    -     -     -     252     -     -     -  
Total nonrecurring income (non-GAAP) $  12  $  233  $  211  $  289  $  -  $  245  $  274  
                
Expense:               
Losses on debt extinguishment $  -  $  54  $  189  $  -  $  4,481  $  54  $  4,481  
Acquisition costs    231     -     -     -     -     231     -  
Other non-recurring expenses    -     -     -     -     513     -     513  
Accrual adjustments    -     -     (487)    -     -     -     -  
Total nonrecurring expense (non-GAAP) $  231  $  54  $  (298) $  -  $  4,994  $  285  $  4,994  
                
Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (2) $   6,895   $   6,194   $   6,276   $   6,200   $   4,470   $   13,090   $   8,374   
                
                
CORE EARNINGS PER COMMON SHARE (2)               
                
Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (from above) $  6,895  $  6,194  $  6,276  $  6,200  $  4,470  $  13,090  $  8,374  
                
Weighted average common shares outstanding    12,335,077     11,793,620     11,744,495     11,713,993     9,946,744     12,064,349     8,961,327  
Weighted average common and common equivalent shares outstanding   12,516,474     11,953,949     11,926,038     11,875,930     9,946,744     12,235,212     9,098,697  
                
Core earnings per common share (non-GAAP):               
Basic $   0.56   $   0.53   $   0.53   $   0.53   $   0.45   $   1.09   $   0.93   
Diluted $   0.55   $   0.52   $   0.53   $   0.52   $   0.45   $   1.07   $   0.92   
                
                
CORE RETURN ON AVERAGE ASSETS (2)               
                
Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (from above) $  6,895  $  6,194  $  6,276  $  6,200  $  4,470  $  13,090  $  8,374  
                
Average Assets $  2,640,678  $  2,602,350  $  2,611,276  $  2,563,739  $  2,518,170  $  2,621,514  $  2,512,334  
                
Core return on average assets (annualized) (non-GAAP)  1.04%  0.95%  0.96%  0.97%  0.71%  1.00%  0.67% 
                
                
(1) This ratio is a non-GAAP financial measure.  The Company's management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. 
(2) Core net income, core net income attributable to QCR Holdings, Inc. common stockholders, core earnings per common share and core return on average assets are non-GAAP financial measures.  The Company's management believes that these measurements are important to investors as they exclude non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. 
(3) Nonrecurring items (post-tax) are calculated using an estimated effective tax rate of 35%. 
                

            

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