EXHIBIT 99.1
MOLINE, Ill., Oct. 28, 2013 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (Nasdaq:QCRH) (the "Company") today announced net income attributable to QCR Holdings, Inc. ("Net Income") of $3.8 million for the quarter ended September 30, 2013, or diluted earnings per common share ("EPS") of $0.51 after preferred stock dividends of $811 thousand. By comparison, for the quarter ended June 30, 2013, the Company reported Net Income of $4.0 million, or diluted EPS of $0.59 after preferred stock dividends of $811 thousand. For the third quarter of 2012, the Company reported Net Income of $3.1 million, or diluted EPS of $0.44 after preferred stock dividends of $811 thousand. For the first three quarters of 2013, the Company reported Net Income of $11.1 million, or diluted EPS of $1.59 after preferred stock dividends of $2.4 million. This was an increase of $1.8 million, or 19%, over the same period in 2012.
"Our core earnings expanded in the third quarter with the help of a full quarter of earnings from Community National Bank ("CNB"), which we acquired in May of this year," explained Douglas M. Hultquist, President and Chief Executive Officer. "Specifically, net interest income grew $1.6 million, or 10%, compared to the second quarter of 2013. Most of this was attributable to the addition of CNB. Excluding the bargain purchase gain of $1.8 million recognized in the second quarter of 2013, our noninterest income jumped $827 thousand, or 16%, led by wealth management and deposit service fee income. Quad City Bank & Trust recognized gains of $417 thousand as we sold securities as part of a bond swap strategy, where we took advantage of a unique market opportunity to generate gains and grow future interest income with modest diversification and duration extension. Partially offsetting these revenue increases, we incurred $1.8 million more in noninterest expenses as a result of the full quarter of CNB's existing cost structure. We are executing our integration plan and fully expect to increase operational efficiency and realize the expected costs savings in the fourth quarter."
Mr. Hultquist added, "We also incurred $389 thousand in acquisition and conversion costs this quarter. As a result, if you remove the bond gains noted above and these acquisition and conversion costs from our third quarter results, our core earnings were $3.8 million and $0.51 in EPS for the quarter."
Net Interest Income and Margin Expand in the Current Quarter
Net interest income totaled $17.3 million for the quarter ended September 30, 2013, which was an increase of 10% from the prior quarter and an increase of 18% compared to the same quarter of 2012. For the first three quarters of 2013, net interest income grew 9% over the same period of 2012. Net interest margin was 3.07% for the third quarter of 2013, compared to 2.99% for the prior quarter, and compared to 3.20% for the second quarter of 2012. For the first three quarters of 2013, the Company's net interest margin was 3.03% compared to 3.18% for the same period of 2012.
Mr. Hultquist added, "The reasons for our margin expansion quarter-over-quarter in 2013 are twofold. First, we had our first full quarter of earnings from CNB, including $463 thousand of net interest income recognized on net accretion of the market value adjustments and intangibles recorded upon acquisition. Second, we continue to have success in organically growing earning assets in our legacy markets. The impact of growth in earning assets has outpaced the impact of declining yields which appear to have slowed. We continue to place a strong emphasis on loan and deposit growth in all of our markets. Considering the highly competitive environment, it's more important than ever that our talented bankers execute on our relationship-based business model."
Continued Growth of Loans and Deposits
During the third quarter of 2013, the Company's total assets grew $38.9 million, or 2%, to a total of $2.49 billion. Loans/leases grew slightly at 1% while securities were flat. The Company's liquid assets (cash and federal funds sold) grew $27.2 million. Most of the asset growth was funded with deposits which grew $25.1 million, or 2%.
"Despite a highly competitive climate and a period of slow economic recovery, we are pleased to report continued growth in loans and leases during the quarter," remarked Todd A. Gipple, Executive Vice President, Chief Operating Officer, and Chief Financial Officer. "In addition, we were successful in shifting the mix of our deposit portfolio as brokered time deposits fell $66.2 million, or 13%, and transactional demand deposits rose $91.2 million, or 8%. Of the latter, we continue to grow our noninterest bearing deposit portfolio with additional growth of $21.4 million, or 4%, for the current quarter. We remain committed to growing quality loans and leases and supporting our communities. As we did this quarter, we expect to fund future loan/lease growth primarily with core deposits. Additionally, we remain committed to reducing our reliance on longer term wholesale borrowing which tends to be higher cost than core deposits."
Sales of Mason City, IA and Austin, MN Branches of CNB Finalized
On October 4, 2013, the Company completed its previously announced sale of the two Mason City, Iowa, branches of CNB to Clear Lake Bank & Trust Company. The Company sold certain assets and liabilities of the two Mason City branches, including deposits of approximately $62 million and loans of approximately $26 million.
On October 11, 2013, the Company completed its previously announced sale of the two Austin, Minnesota, branches of CNB to Eastwood Bank. The Company sold certain assets and liabilities of the two Austin branches, including deposits of approximately $37 million and loans of approximately $31 million.
Mr. Gipple explained, "Based on the premiums we received in completing these two transactions, we anticipate recognizing an after-tax gain in the range of approximately $1.6 to $2.0 million in the fourth quarter of 2013. CNB had created strong deposit franchises in these markets with a talented group of employees and a solid client base. It was simply a case where the markets were not a strong strategic fit for our Company and divesting these markets frees up significant capital and other resources to better focus on the Waterloo/Cedar Falls community and our other legacy markets."
Nonperforming Assets Improve 1%
Nonperforming assets at September 30, 2013 were $33.7 million, which were down $390 thousand, or approximately 1%, from June 30, 2013. In addition, the ratio of nonperforming assets-to-total assets was 1.35% at September 30, 2013, which was down from 1.39% at June 30, 2013, and down from 1.44% at September 30, 2012. Generally, the vast majority of the Company's nonperforming assets consist of nonaccrual loans/leases, accruing troubled debt restructurings, and other real estate owned ("OREO").
"During the current quarter, we were able to reduce our nonperforming assets by 1%," stated Mr. Hultquist. "Additionally, we experienced a shift in the mix of our nonperforming assets as we foreclosed on the properties securing a few nonaccrual loans and shifted approximately $5.0 million from nonaccrual loans to OREO. We are confident in our valuation approach to OREO and in our ability to sell the OREO timely at minimal additional loss. Our lending/leasing practices and credit culture remain unchanged, and we will continue our strong commitment to improving our overall asset quality."
Provision for loan/lease losses ("provision") totaled $1.4 million for the third quarter of 2013, which is down $153 thousand from the prior quarter, and down $129 thousand from the third quarter of 2012. For the first three quarters of 2013, the Company's provision totaled $3.9 million which was an increase of $620 thousand, or 19%, from the same period of 2012. With the provision of $1.4 million more than offsetting the net charge-offs totaling $461 thousand (only three basis points of average loans/leases during the current quarter), the Company's allowance for loan/lease losses ("allowance") grew to $22.1 million at September 30, 2013. As of September 30, 2013, the Company's allowance to total loans/leases was 1.43%, which was up from 1.38% at June 30, 2013, and down from 1.56% at September 30, 2012. In accordance with generally accepted accounting principles for acquisition accounting, the acquired CNB loans were recorded at market value; therefore, there was no allowance associated with CNB's loans at acquisition. Further, the Company's allowance to total nonperforming loans/leases was 89% at September 30, 2013, which was up from 71% at June 30, 2013 and up from 81% at September 30, 2012.
Capital Levels Remain Strong
As of September 30, 2013, the Company and its subsidiary banks continued to maintain capital at levels well above the existing minimum requirements administered by the federal regulatory agencies.
"With the CNB acquisition and continued organic growth, we are pleased to continue to report regulatory capital ratios that are still well in excess of those levels required to be considered 'well-capitalized' today," stated Mr. Gipple. "Additionally, we remain strongly committed to our long-term capital plan of self-generating the capital necessary to grow tangible common equity and to continue redemption of the remaining Small Business Lending Fund preferred capital without a dilutive common equity raise."
Mr. Gipple added, "We were pleased with the final regulatory capital rules recently confirmed by the joint federal regulatory agencies. We believe that our current capital structure and execution of our existing capital plan without the need for a dilutive common equity raise will be more than sufficient to meet and exceed the revised regulatory capital ratios as required by Basel III."
Financial highlights as of September 30, 2013 for the Company's primary subsidiaries were as follows:
QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company, which serves the Quad City, Cedar Rapids, 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 asset management services. Quad City Bank & Trust Company also engages in commercial leasing through its wholly owned subsidiary, m2 Lease Funds, LLC, based in Milwaukee, Wisconsin. With the acquisition of Community National Bank on May 13, 2013, the Company now serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company.
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 Basel III, 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 CNB; (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 | ||||||||
| September 30, 2013 | June 30, 2013 | December 31, 2012 | September 30, 2012 | |||||
| (dollars in thousands, except share data) | ||||||||
| CONDENSED BALANCE SHEET | Amount | % | Amount | % | Amount | % | Amount | % |
| Cash, federal funds sold, and interest-bearing deposits | $ 122,779 | 5% | $ 95,557 | 4% | $ 110,488 | 5% | $ 95,727 | 5% |
| Securities | 703,699 | 28% | 703,467 | 29% | 602,239 | 29% | 591,351 | 29% |
| Net loans/leases | 1,517,321 | 61% | 1,509,570 | 62% | 1,267,462 | 61% | 1,224,875 | 61% |
| Core deposit intangible | 3,311 | 0% | 3,440 | 0% | -- | 0% | -- | 0% |
| Goodwill | 3,223 | 0% | 3,223 | 0% | 3,223 | 0% | 3,223 | 0% |
| Other assets | 135,381 | 6% | 131,514 | 6% | 110,318 | 5% | 108,770 | 5% |
| Total assets | $ 2,485,714 | 100% | $ 2,446,771 | 100% | $ 2,093,730 | 100% | $ 2,023,946 | 100% |
| Total deposits | $ 1,741,832 | 70% | $ 1,716,780 | 70% | $ 1,374,114 | 66% | $ 1,343,235 | 66% |
| Total borrowings | 557,513 | 22% | 549,990 | 22% | 547,758 | 26% | 511,561 | 25% |
| Other liabilities | 38,416 | 2% | 34,555 | 1% | 31,424 | 1% | 30,029 | 2% |
| Total stockholders' equity | 147,953 | 6% | 145,446 | 6% | 140,434 | 7% | 139,121 | 7% |
| Total liabilities and stockholders' equity | $ 2,485,714 | 100% | $ 2,446,771 | 100% | $ 2,093,730 | 100% | $ 2,023,946 | 100% |
| SELECTED INFORMATION FOR COMMON STOCKHOLDERS' EQUITY | ||||||||
| Common stockholders' equity * | $ 94,791 | $ 92,283 | $ 87,271 | $ 85,958 | ||||
| Common shares outstanding | 5,810,602 | 5,797,067 | 4,918,202 | 4,862,778 | ||||
| Book value per common share ** | $ 16.31 | $ 15.92 | $ 17.74 | $ 17.65 | ||||
| Tangible book value per common share ** | $ 15.19 | $ 14.77 | $ 17.08 | $ 16.98 | ||||
| Closing stock price | $ 15.89 | $ 15.45 | $ 13.22 | $ 14.98 | ||||
| Market capitalization | $ 92,330 | $ 89,565 | $ 65,019 | $ 72,844 | ||||
| Market price / book value | 97.40% | 97.05% | 74.50% | 84.89% | ||||
| Market price / tangible book value | 104.64% | 104.63% | 77.39% | 88.24% | ||||
| Tangible common equity *** / total tangible assets (TCE/TA) | 3.56% | 3.51% | 4.02% | 4.09% | ||||
| TCE/TA excluding accumulated other comprehensive income | 3.96% | 3.89% | 3.80% | 3.78% | ||||
| REGULATORY CAPITAL RATIOS: | ||||||||
| Total risk-based capital ratio | 12.43% | **** | 12.20% | 12.71% | 12.98% | |||
| Tier 1 risk-based capital ratio | 11.02% | **** | 10.82% | 11.27% | 11.52% | |||
| Tier 1 leverage capital ratio | 7.77% | **** | 8.07% | 8.13% | 8.12% | |||
| For the quarter ended September 30, | For the nine months ended September 30, | |||||||
| CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY | 2013 | 2012 | 2013 | 2012 | ||||
| Beginning balance | $ 145,446 | $ 139,322 | $ 140,434 | $ 144,433 | ||||
| Net income | 3,812 | 3,185 | 11,122 | 9,861 | ||||
| Other comprehensive income (loss), net of tax | (818) | 1,644 | (14,746) | 1,368 | ||||
| Preferred and common cash dividends declared | (811) | (811) | (2,663) | (2,875) | ||||
| Issuance of 834,715 shares of common stock for acquisition of CNB, net | -- | -- | 13,017 | -- | ||||
| Redemption of 10,223 shares of Series F Preferred Stock | -- | -- | -- | (10,223) | ||||
| Purchase of noncontrolling interest | -- | (4,527) | -- | (4,527) | ||||
| Other ***** | 324 | 308 | 789 | 1,084 | ||||
| Ending balance | $ 147,953 | $ 139,121 | $ 147,953 | $ 139,121 | ||||
| * Includes noncontrolling interests and accumulated other comprehensive income | ||||||||
| **Includes accumulated other comprehensive income and excludes noncontrolling interests | ||||||||
| ***Tangible common equity is defined as total common stockholders' equity excluding equity of noncontrolling interests and excluding goodwill and other intangibles. This ratio is a non-GAAP financial measure. The Company's management believes that this measure is important to many investors in the marketplace who are interested in changes period to period in common equity exclusive of changes in intangible assets. | ||||||||
| ****Subject to change upon final calculation for regulatory filings due after earnings release | ||||||||
| *****Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation. | ||||||||
| QCR HOLDINGS, INC. | ||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||
| (Unaudited) | ||||||||
| As of | ||||||||
| September 30, 2013 | June 30, 2013 | December 31, 2012 | September 30, 2012 | |||||
| (dollars in thousands) | ||||||||
| ANALYSIS OF LOAN DATA | Amount | % | Amount | % | Amount | % | Amount | % |
| Nonaccrual loans/leases | $ 22,126 | 66% | $ 27,782 | 82% | $ 17,932 | 60% | $ 17,731 | 61% |
| Accruing loans/leases past due 90 days or more | 61 | 0% | 3 | 0% | 159 | 1% | 203 | 1% |
| Troubled debt restructures - accruing | 2,739 | 8% | 2,178 | 6% | 7,300 | 25% | 6,009 | 21% |
| Other real estate owned | 8,496 | 25% | 3,860 | 11% | 3,955 | 13% | 5,003 | 17% |
| Other repossessed assets | 255 | 1% | 244 | 1% | 212 | 1% | 116 | 0% |
| Total nonperforming assets | $ 33,677 | 100% | $ 34,067 | 100% | $ 29,558 | 100% | $ 29,062 | 100% |
| Net charge-offs (calendar year-to-date) | $ 1,808 | $ 1,347 | $ 3,235 | $ 2,698 | ||||
| Loan/lease mix: | ||||||||
| Commercial and industrial loans | $ 471,257 | 31% | $ 470,416 | 31% | $ 394,244 | 31% | $ 355,004 | 29% |
| Commercial real estate loans | 714,701 | 46% | 724,006 | 47% | 593,979 | 46% | 594,904 | 48% |
| Direct financing leases | 121,268 | 8% | 114,755 | 8% | 103,686 | 8% | 102,039 | 8% |
| Residential real estate loans | 150,825 | 10% | 143,093 | 9% | 115,582 | 9% | 112,492 | 9% |
| Installment and other consumer loans | 77,226 | 5% | 74,569 | 5% | 76,720 | 6% | 76,838 | 6% |
| Deferred loan/lease origination costs, net of fees | 4,106 | 0% | 3,887 | 0% | 3,176 | 0% | 3,015 | 0% |
| Total loans/leases | $ 1,539,383 | 100% | $ 1,530,726 | 100% | $ 1,287,387 | 100% | $ 1,244,292 | 100% |
| Less allowance for estimated losses on loans/leases | 22,062 | 21,156 | 19,925 | 19,417 | ||||
| Net loans/leases | $ 1,517,321 | $ 1,509,570 | $ 1,267,462 | $ 1,224,875 | ||||
| ANALYSIS OF SECURITIES DATA | ||||||||
| Securities mix: | ||||||||
| U.S. government sponsored agency securities | $ 367,525 | 52% | $ 382,306 | 55% | $ 338,609 | 57% | $ 343,244 | 59% |
| Residential mortgage-backed and related securities | 166,545 | 24% | 177,155 | 25% | 163,601 | 27% | 155,691 | 26% |
| Municipal securities | 166,771 | 24% | 141,381 | 20% | 97,615 | 16% | 90,032 | 15% |
| Other securities | 2,858 | 0% | 2,625 | 0% | 2,414 | 0% | 2,384 | 0% |
| Total securities | $ 703,699 | 100% | $ 703,467 | 100% | $ 602,239 | 100% | $ 591,351 | 100% |
| ANALYSIS OF DEPOSIT DATA | ||||||||
| Deposit mix: | ||||||||
| Noninterest-bearing demand deposits | $ 515,365 | 30% | $ 493,964 | 29% | $ 450,660 | 33% | $ 417,284 | 31% |
| Interest-bearing demand deposits | 780,546 | 45% | 710,745 | 42% | 587,201 | 43% | 567,578 | 42% |
| Time deposits | 382,819 | 22% | 451,991 | 26% | 290,933 | 21% | 308,083 | 23% |
| Brokered time deposits | 63,103 | 4% | 60,080 | 3% | 45,320 | 3% | 50,290 | 4% |
| Total deposits | $ 1,741,833 | 100% | $ 1,716,780 | 100% | $ 1,374,114 | 100% | $ 1,343,235 | 100% |
| ANALYSIS OF BORROWINGS DATA | ||||||||
| Borrowings mix: | ||||||||
| FHLB advances | $ 205,350 | 37% | $ 209,950 | 38% | $ 202,350 | 37% | $ 196,350 | 38% |
| Wholesale structured repurchase agreements | 130,000 | 23% | 130,000 | 24% | 130,000 | 24% | 130,000 | 25% |
| Customer repurchase agreements | 124,330 | 22% | 115,326 | 21% | 104,943 | 19% | 114,248 | 22% |
| Federal funds purchased | 44,930 | 8% | 41,860 | 8% | 66,140 | 12% | 26,640 | 6% |
| Junior subordinated debentures | 40,257 | 7% | 40,210 | 7% | 36,085 | 7% | 36,085 | 7% |
| Other | 12,646 | 2% | 12,644 | 2% | 8,240 | 1% | 8,238 | 2% |
| Total borrowings | $ 557,513 | 100% | $ 549,990 | 100% | $ 547,758 | 100% | $ 511,561 | 100% |
| QCR HOLDINGS, INC. | |||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||
| (Unaudited) | |||||
| For the Quarter Ended | For the Nine Months Ended | ||||
| September 30, 2013 | June 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |
| (dollars in thousands, except per share data) | |||||
| CONDENSED INCOME STATEMENT | |||||
| Interest income | $ 21,996 | $ 20,139 | $ 19,487 | $ 60,673 | $ 58,396 |
| Interest expense | 4,686 | 4,431 | 4,858 | 13,463 | 15,047 |
| Net interest income | 17,310 | 15,708 | 14,629 | 47,210 | 43,349 |
| Provision for loan/lease losses | 1,367 | 1,520 | 1,496 | 3,945 | 3,325 |
| Net interest income after provision for loan/lease losses | 15,943 | 14,188 | 13,133 | 43,265 | 40,024 |
| Noninterest income | 5,935 | 6,949 | 4,117 | 18,087 | 12,141 |
| Noninterest expense | 17,027 | 15,235 | 13,031 | 46,220 | 38,878 |
| Net income before taxes | 4,851 | 5,902 | 4,219 | 15,132 | 13,287 |
| Income tax expense | 1,039 | 1,857 | 1,035 | 4,010 | 3,426 |
| Net income | $ 3,812 | $ 4,045 | $ 3,184 | $ 11,122 | $ 9,861 |
| Less: Net income attributable to noncontrolling interests | -- | -- | 127 | -- | 495 |
| Net income attributable to QCR Holdings, Inc. | $ 3,812 | $ 4,045 | $ 3,057 | $ 11,122 | $ 9,366 |
| Less: Preferred stock dividends | 811 | 811 | 811 | 2,432 | 2,685 |
| Net income attributable to QCR Holdings, Inc. common stockholders | $ 3,001 | $ 3,234 | $ 2,246 | $ 8,690 | $ 6,681 |
| Earnings per share attributable to QCR Holdings, Inc.: | |||||
| Basic | $ 0.52 | $ 0.60 | $ 0.45 | $ 1.62 | $ 1.37 |
| Diluted | $ 0.51 | $ 0.59 | $ 0.44 | $ 1.59 | $ 1.35 |
| Earnings per common share (basic) attributable to QCR Holdings, Inc. LTM * | $ 2.12 | $ 2.05 | $ 1.73 | ||
| Weighted average common shares outstanding | 5,806,019 | 5,393,062 | 4,978,699 | 5,375,557 | 4,871,626 |
| Weighted average common and common equivalent shares outstanding | 5,915,279 | 5,497,275 | 5,080,288 | 5,482,298 | 4,938,514 |
| AVERAGE BALANCES | |||||
| Assets | $ 2,456,167 | $ 2,323,336 | $ 2,030,209 | $ 2,296,505 | $ 2,013,525 |
| Loans/leases | $ 1,529,771 | $ 1,418,389 | $ 1,227,326 | $ 1,409,067 | $ 1,212,323 |
| Deposits | $ 1,738,310 | $ 1,551,095 | $ 1,321,547 | $ 1,557,757 | $ 1,292,360 |
| Total stockholders' equity | $ 146,038 | $ 146,671 | $ 139,222 | $ 144,631 | $ 142,329 |
| Common stockholders' equity | $ 93,537 | $ 90,659 | $ 86,058 | $ 91,031 | $ 83,503 |
| KEY PERFORMANCE RATIOS | |||||
| Return on average assets (annualized) *** | 0.62% | 0.70% | 0.60% | 0.65% | 0.62% |
| Return on average common equity (annualized) ** | 12.83% | 14.27% | 10.44% | 12.73% | 10.67% |
| Return on average total equity (annualized) *** | 10.44% | 11.03% | 8.78% | 10.25% | 8.77% |
| Price earnings ratio LTM * | 7.50 x | 7.54 x | 8.66 x | 7.50 x | 8.66 x |
| Net interest margin (TEY) | 3.07% | 2.99% | 3.20% | 3.03% | 3.18% |
| Nonperforming assets / total assets | 1.35% | 1.39% | 1.44% | 1.35% | 1.44% |
| Net charge-offs / average loans/leases | 0.03% | 0.08% | 0.07% | 0.13% | 0.22% |
| Allowance / total loans/leases **** | 1.43% | 1.38% | 1.56% | 1.43% | 1.56% |
| Allowance / nonperforming loans **** | 88.51% | 70.61% | 81.10% | 88.51% | 81.10% |
| Efficiency ratio | 73.25% | 67.24% | 69.51% | 70.78% | 70.06% |
| Full-time equivalent employees ***** | 431 | 438 | 355 | 431 | 355 |
| * LTM: Last twelve months | |||||
| ** The numerator for this ratio is "Net income attributable to QCR Holdings, Inc. common stockholders" | |||||
| *** The numerator for this ratio is "Net income attributable to QCR Holdings, Inc." | |||||
| **** Upon acquisition per GAAP, the loans are recorded at market value which eliminated the allowance and impacts these ratios. | |||||
| ***** CNB had 75 and 77 full-time equivalent employees at September 30, 2013 and June 30, 2013, respectively. | |||||
| QCR HOLDINGS, INC. | |||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||
| (Unaudited) | |||||||||
| ANALYSIS OF NET INTEREST INCOME AND MARGIN | |||||||||
| For the Quarter Ended | |||||||||
| September 30, 2013 | June 30, 2013 | September 30, 2012 | |||||||
| 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) | |||||||||
| Securities * | $ 717,195 | $ 4,043 | 2.24% | $ 714,808 | $ 4,040 | 2.27% | $ 619,650 | $ 3,930 | 2.52% |
| Loans * | 1,529,771 | 18,440 | 4.78% | 1,418,389 | 16,530 | 4.67% | 1,227,326 | 16,002 | 5.19% |
| Other | 80,903 | 226 | 1.11% | 60,099 | 196 | 1.31% | 55,064 | 211 | 1.52% |
| Total earning assets * | $ 2,327,869 | $ 22,709 | 3.87% | $ 2,193,296 | $ 20,766 | 3.80% | $ 1,902,040 | $ 20,143 | 4.21% |
| Deposits | $ 1,212,602 | $ 1,394 | 0.46% | $ 1,049,017 | $ 1,177 | 0.45% | $ 914,950 | $ 1,489 | 0.65% |
| Borrowings | 533,138 | 3,292 | 2.45% | 593,416 | 3,254 | 2.20% | 540,293 | 3,369 | 2.48% |
| Total interest-bearing liabilities | $ 1,745,740 | 4,686 | 1.06% | $ 1,642,433 | 4,431 | 1.08% | $ 1,455,243 | 4,858 | 1.33% |
| Net interest income / spread * | $ 18,023 | 2.81% | $ 16,335 | 2.72% | $ 15,285 | 2.89% | |||
| Net interest margin * | 3.07% | 2.99% | 3.20% | ||||||
| For the Nine Months Ended | |||||||||
| September 30, 2013 | September 30, 2012 | ||||||||
| Average Balance | Interest Earned or Paid | Average Yield or Cost | Average Balance | Interest Earned or Paid | Average Yield or Cost | ||||
| (dollars in thousands) | |||||||||
| Securities * | $ 693,547 | $ 11,742 | 2.26% | $ 603,756 | $ 10,890 | 2.41% | |||
| Loans * | 1,409,067 | 50,221 | 4.77% | 1,212,323 | 48,307 | 5.32% | |||
| Other | 65,533 | 606 | 1.24% | 68,823 | 669 | 1.30% | |||
| Total earning assets * | $ 2,168,147 | $ 62,569 | 3.86% | $ 1,884,902 | $ 59,866 | 4.24% | |||
| Deposits | $ 1,052,740 | $ 3,687 | 0.47% | $ 896,329 | $ 4,834 | 0.72% | |||
| Borrowings | 559,724 | 9,776 | 2.34% | 551,756 | 10,213 | 2.47% | |||
| Total interest-bearing liabilities | $ 1,612,464 | 13,463 | 1.12% | $ 1,448,085 | 15,047 | 1.39% | |||
| Net interest income / spread * | $ 49,106 | 2.74% | $ 44,819 | 2.85% | |||||
| Net interest margin * | 3.03% | 3.18% | |||||||
| * Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 34% tax rate for each period presented. | |||||||||
| QCR HOLDINGS, INC. | |||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||
| (Unaudited) | |||||
| For the Quarter Ended | For the Nine Months Ended | ||||
September 30, 2013 | June 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |
| ANALYSIS OF NONINTEREST INCOME | (dollars in thousands) | ||||
| Trust department fees | $ 1,312 | $ 1,197 | $ 915 | $ 3,549 | $ 2,650 |
| Investment advisory and management fees | 634 | 695 | 576 | 1,939 | 1,776 |
| Deposit service fees | 1,229 | 1,054 | 847 | 3,191 | 2,627 |
| Gain on sales of residential real estate loans | 185 | 247 | 424 | 722 | 987 |
| Gain on sales of government guaranteed portions of loans | 338 | 766 | 261 | 1,949 | 979 |
| Earnings on cash surrender value of life insurance | 466 | 424 | 400 | 1,329 | 1,197 |
| Credit card fees, net of processing costs | 58 | 85 | 140 | 193 | 410 |
| Subtotal | $ 4,222 | $ 4,468 | $ 3,563 | $ 12,872 | $ 10,626 |
| Bargain purchase gain on CNB acquisition | -- | 1,841 | -- | 1,841 | -- |
| Losses on other real estate owned, net | (3) | (83) | (746) | (533) | (1,324) |
| Securities gains | 417 | 16 | -- | 433 | 105 |
| Other * | 1,299 | 707 | 1,300 | 3,474 | 2,734 |
| Total noninterest income | $ 5,935 | $ 6,949 | $ 4,117 | $ 18,087 | $ 12,141 |
| ANALYSIS OF NONINTEREST EXPENSE | |||||
| Salaries and employee benefits | $ 9,803 | $ 9,186 | $ 8,201 | $ 27,732 | $ 24,582 |
| Occupancy and equipment expense | 1,915 | 1,587 | 1,460 | 4,931 | 4,177 |
| Professional and data processing fees | 1,903 | 1,439 | 1,066 | 4,482 | 3,343 |
| FDIC and other insurance | 713 | 627 | 599 | 1,896 | 1,756 |
| Loan/lease expense | 396 | 252 | 273 | 893 | 755 |
| Advertising and marketing | 406 | 412 | 437 | 1,083 | 1,057 |
| Postage and telephone | 277 | 258 | 191 | 753 | 716 |
| Stationery and supplies | 143 | 151 | 140 | 405 | 418 |
| Bank service charges | 307 | 284 | 211 | 866 | 610 |
| Subtotal | $ 15,863 | $ 14,196 | $ 12,578 | $ 43,041 | $ 37,414 |
| Acquisition costs | 389 | 432 | -- | 1,178 | -- |
| Other-than-temporary-impairment losses on securities | -- | -- | -- | -- | 62 |
| Other | 775 | 607 | 453 | 2,001 | 1,402 |
| Total noninterest expense | $ 17,027 | $ 15,235 | $ 13,031 | $ 46,220 | $ 38,878 |
| * Following is a detailed breakdown of Other Noninterest Income: | |||||
| Gain on sale of credit card loan portfolio | $ -- | $ -- | $ -- | $ 495 | $ -- |
| Gain on sale of credit card issuing operations | -- | -- | -- | 355 | -- |
| Debit card fees | 265 | 257 | 240 | 752 | 729 |
| Fees on interest rate swaps on commercial loans | 44 | -- | 94 | 51 | 300 |
| Miscellaneous | 990 | 450 | 966 | 1,821 | 1,705 |
| TOTAL | $ 1,299 | $ 707 | $ 1,300 | $ 3,474 | $ 2,734 |
CONTACT: Todd A. Gipple
Executive Vice President
Chief Operating Officer
Chief Financial Officer
(309) 743-7745