EXHIBIT 99.1
QCR Holdings, Inc. Announces Earnings Results For the Second Quarter of 2007
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) unexpecte d 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
CONTACT: QCR Holdings, Inc.
Todd A. Gipple, Executive Vice President,
Chief Financial Officer
(309) 743-7745
