EXHIBIT 99.1
MOLINE, Ill., Feb. 3, 2014 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (Nasdaq:QCRH) today announced net income attributable to QCR Holdings, Inc. ("Net Income") of $3.8 million for the quarter ended December 31, 2013, or diluted earnings per common share ("EPS") of $0.50 after preferred stock dividends of $736 thousand. By comparison, for the quarter ended September 30, 2013, the Company reported Net Income of $3.8 million, or diluted EPS of $0.51 after preferred stock dividends of $811 thousand. For the fourth quarter of 2012, the Company reported Net Income of $3.2 million, or diluted EPS of $0.49 after preferred stock dividends of $811 thousand.
Successful Sales of Austin, MN and Mason City, IA Branches of Community National Bank Highlight Fourth Quarter
On October 4, 2013, the Company completed its previously announced sale of the two Mason City, Iowa branches of Community National Bank ("CNB") to Clear Lake Bank & Trust Company. The Company sold certain assets and liabilities of the two Mason City branches, including deposits of $55 million and loans of $23 million, for a pre-tax gain on sale of $874 thousand. 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 $36 million and loans of $32 million, for a pre-tax gain on sale of $1.5 million. In total, the Company sold certain assets and liabilities of CNB branches totaling $91 million for a pre-tax gain on sale of $2.3 million. Subsequent to the branch sales, the Company executed a data conversion and merger of CNB and its remaining branches into Cedar Rapids Bank & Trust ("CRBT"). CNB is operating as a division of CRBT under the name of "Community Bank & Trust."
"With the successful execution of the branch sales and a successful data conversion and merger of CNB into CRBT, the acquisition of CNB continued to significantly impact our earnings in the fourth quarter," stated Douglas M. Hultquist, President and Chief Executive Officer. "The pre-tax gain on the branch sales of $2.3 million was offset by $1.2 million of pre-tax acquisition costs which consisted mostly of data conversion costs as well as professional fees and other costs related to the branch sales."
Mr. Hultquist added, "Excluding these one-time acquisition related items, our core earnings totaled $3.1 million which is a decline from $3.8 million of the prior quarter. Our core revenue fell quarter-over-quarter with nearly a full quarter of operations occurring after the branch sales. Specifically, net interest income fell quarter-over-quarter by $414 thousand as a result of reduced earning assets related to the branch sales. Additionally, deposit service fees declined $153 thousand quarter-over-quarter. These revenue declines from the branch sales were only minimally offset by cost savings as we finalized the CNB integration and related cost savings throughout the entire fourth quarter. Now that the integration is complete, we fully expect increased operational efficiency for CNB as we move into 2014. Our provision for loan/lease losses ("provision") was elevated in the fourth quarter, an increase of $619 thousand over the prior quarter, as we added specific reserves to several existing nonperforming loans. Our allowance now covers 105% of total nonperforming loans."
Company Reports Record Net Income for the Year Propelled by Acquisition-Related Gains
For the year ended December 31, 2013, the Company reported Net Income of $14.9 million, or diluted EPS of $2.08 after preferred stock dividends of $3.2 million. For the same period of 2012, the Company reported Net Income of $12.6 million, or diluted EPS of $1.85 after preferred stock dividends of $3.5 million. Net interest income grew $6.5 million, or 11%, in 2013 with the acquisition of CNB and organic growth in our legacy markets. Provision increased $1.6 million, or 36%, as the Company added specific reserves to several existing nonperforming loans as workouts of those loans continue to progress. Noninterest income jumped $9.2 million, or 55%, propelled by acquisition related gains of $4.1 million (bargain purchase gain of $1.8 million and the gains on branch sales of $2.3 million), growth in wealth management fee income of $1.5 million, increased gains on sales of government guaranteed portions of loans of $1.1 million, as well as increases across many of the core recurring noninterest income sources as a result of the acquisition of CNB. Noninterest expenses grew $12.2 million, or 23%, in 2013. Acquisition and data conversion costs totaled $2.3 million for the year. The addition of CNB's cost structure contributed to increased costs for more than half of the year.
Mr. Hultquist continued, "This past year was the busiest in our Company's history. We are excited to have added Community Bank & Trust to our QCRH Family. Stripping away one-time items, our core earnings for 2013 totaled $13.3 million, which was an increase of $703 thousand, or 6%, over 2012's core earnings of $12.6 million. Elevated levels of noninterest expenses as we worked to get CNB fully integrated diluted some of this core earnings growth. As we have fully integrated CNB, we are confident our operational efficiency will improve in 2014. Further, although we saw increased provision for 2013, we continue to place a strong emphasis on our loan quality."
Net Interest Income Grew 11% in 2013
Net interest income grew $6.5 million, or 11%, in 2013. The acquisition of CNB coupled with organic earning asset growth at the Company's legacy charters contributed to the growth. Net interest margin compressed from 3.14% for 2012 down to 3.03% for 2013 as the impact of earning asset growth fell short of the impact of declining yields. For the fourth quarter of 2013, net interest income fell 2% from the third quarter of 2013 as a result of the impact of the branch sales. By comparison, net interest income for the fourth quarter of 2013 grew $2.6 million, or 18%, from the same quarter of 2012. The Company reported net interest margin of 3.04% for the fourth quarter of 2013, which is a decline of 3 basis points from the prior quarter, and a decrease of 1 basis point from the fourth quarter of 2012.
"Our management teams are working hard to expand net interest income and margin," stated Todd A. Gipple, Executive Vice President, Chief Operating Officer, and Chief Financial Officer. "The impact of declining yields on our earning assets appears to have slowed. We continue to focus on growing quality loans/leases and core deposits to maximize net interest income and margin while balancing interest rate risk."
Total Assets Grew 14% in 2013
During the fourth quarter of 2013, the Company's total assets declined $90.8 million, or 4%, to a total of $2.39 billion. The decline was primarily attributable to the sale of the CNB branches. Excluding the impact of the branch sales, loans/leases declined $24.0 million as payoffs outpaced new loans and the Company successfully worked out of certain nonperforming loans. The Company's liquid assets (cash and federal funds sold) grew $22.1 million, offsetting the decline in loans/leases. Excluding the impact of the branch sales, the Company's liabilities were flat.
For the full year of 2013, the Company's total assets grew $301.2 million, or 14%, as a result of the acquisition of CNB and organic growth in the Company's legacy markets. Specifically, excluding the impact of the branch sales, the Company grew loans/leases $225.8 million, or 18%, during 2013. Additionally, the Company grew its securities portfolio $95.0 million, or 16%, during 2013 with most of this growth in tax-exempt municipal securities. The earning asset growth was funded primarily by deposits which grew $363.9 million, or 26%, excluding the impact of the branch sales.
Mr. Gipple remarked, "Although we are disappointed in the net decline in loans during the current quarter, we remain fully committed to continuing our trend of the past several years of growing quality loans and leases and funding with core deposits. Our talented commercial bankers continue to focus on our relationship-based banking model. Regarding the growth in our securities portfolio over the year, we continue to increase our investment in tax-exempt municipal securities that are located in the Midwest with strong underwriting conducted before investment. We carefully consider pricing and duration as we continually evaluate this investment strategy."
Nonperforming Assets Improve 10% in Fourth Quarter of 2013
Nonperforming assets at December 31, 2013 were $30.6 million, which were down $3.1 million, or 10%, from September 30, 2013, and up $1.0 million, or 3%, from December 31, 2012. In addition, the ratio of nonperforming assets-to-total assets was 1.28% at December 31, 2013, which was down from 1.35% at September 30, 2013, and down from 1.41% at December 31, 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").
"Our nonperforming loans fell $4.4 million, or 18%, during the current quarter," stated Mr. Gipple. "Part of this decline was driven by net charge-offs of $2.6 million as we near completion of workouts for several existing nonperforming loans. The remainder was the result of sales or payoffs of certain nonperforming loans. We continue to focus on working out our existing nonperforming loans and assets timely and at minimal loss. Our lending/leasing practices and credit culture remain unchanged and we will continue our strong commitment to improving our overall asset quality."
The Company's provision totaled $2.0 million for the fourth quarter of 2013, which was up $619 thousand from the prior quarter, and up $940 thousand from the fourth quarter of 2012. For the year ended December 31, 2013, the Company's provision totaled $5.9 million which was an increase of $1.6 million, or 36%, from the same period of 2012. With net charge-offs of $2.6 million (18 basis points of average loans/leases for the current quarter) exceeding provision of $2.0 million, the Company's allowance for loan/lease losses ("allowance") declined to $21.4 million at December 31, 2013. As of December 31, 2013, the Company's allowance to total loans/leases was 1.47%, which was up from 1.43% at September 30, 2013, and down from 1.55% at December 31, 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. Management continues to evaluate the allowance needed on the acquired CNB loans factoring in the net remaining discount originally established upon acquisition. The Company's allowance to total nonperforming loans/leases was 105% at December 31, 2013, which was up from 89% at September 30, 2013 and up from 78% at December 31, 2012.
Capital Levels Remain Strong
Series E Preferred Stock Converted to Common Stock in the Fourth Quarter
As of December 31, 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 successful execution of the CNB branch sales in the fourth quarter, the additional excess capital generated will aid in the execution of our long-term capital plan," stated Mr. Gipple. "In particular, we plan to use the excess capital to continue our redemption of our remaining Small Business Lending Fund preferred capital in 2014."
Mr. Gipple added, "We were pleased to execute on the conversion of our Series E preferred capital during the fourth quarter of 2013. This was a significant accomplishment and a critical component to our long-term capital plan as it increased our tangible common equity approximately 100 basis points and eliminated annual preferred dividends totaling $1.75 million."
Financial highlights 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 Bancorporation 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 | |||||||
| December 31, | September 30, | December 31, | |||||
| 2013 | 2013 | 2012 | |||||
| (dollars in thousands, except share data) | |||||||
| CONDENSED BALANCE SHEET | Amount | % | Amount | % | Amount | % | |
| Cash, federal funds sold, and interest-bearing deposits | $ 114,431 | 5% | $ 122,779 | 5% | $ 110,488 | 5% | |
| Securities | 697,210 | 29% | 703,699 | 28% | 602,239 | 29% | |
| Net loans/leases | 1,438,832 | 60% | 1,517,321 | 61% | 1,267,462 | 61% | |
| Core deposit intangible | 1,870 | 0% | 3,311 | 0% | -- | 0% | |
| Goodwill | 3,223 | 0% | 3,223 | 0% | 3,223 | 0% | |
| Other assets | 139,387 | 6% | 135,381 | 6% | 110,318 | 5% | |
| Total assets | $ 2,394,953 | 100% | $ 2,485,714 | 100% | $ 2,093,730 | 100% | |
| Total deposits | $ 1,646,991 | 68% | $ 1,741,832 | 70% | $ 1,374,114 | 66% | |
| Total borrowings | 563,381 | 24% | 557,513 | 22% | 547,758 | 26% | |
| Other liabilities | 37,004 | 2% | 38,416 | 2% | 31,424 | 1% | |
| Total stockholders' equity | 147,577 | 6% | 147,953 | 6% | 140,434 | 7% | |
| Total liabilities and stockholders' equity | $ 2,394,953 | 100% | $ 2,485,714 | 100% | $ 2,093,730 | 100% | |
| SELECTED INFORMATION FOR COMMON STOCKHOLDERS' EQUITY | |||||||
| Common stockholders' equity * | $ 117,778 | $ 94,791 | $ 87,271 | ||||
| Common shares outstanding ** | 7,884,462 | 5,810,602 | 4,918,202 | ||||
| Book value per common share * | $ 14.94 | $ 16.31 | $ 17.74 | ||||
| Tangible book value per common share *** | $ 14.29 | $ 15.19 | $ 17.08 | ||||
| Closing stock price | $ 17.03 | $ 15.89 | $ 13.22 | ||||
| Market capitalization | $ 134,272 | $ 92,330 | $ 65,019 | ||||
| Market price / book value | 114.00% | 97.40% | 74.50% | ||||
| Market price / tangible book value | 119.17% | 104.64% | 77.39% | ||||
| Tangible common equity **** / total tangible assets (TCE/TA) | 4.71% | 3.56% | 4.02% | ||||
| TCE/TA excluding accumulated other comprehensive income | 5.29% | 3.96% | 3.80% | ||||
| REGULATORY CAPITAL RATIOS: | |||||||
| Total risk-based capital ratio | 12.76% | ***** | 12.25% | 12.71% | |||
| Tier 1 risk-based capital ratio | 11.37% | ***** | 10.84% | 11.27% | |||
| Tier 1 leverage capital ratio | 8.09% | ***** | 7.77% | 8.13% | |||
| For the quarter ended December 31, | For the year ended December 31, | ||||||
| CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY | 2013 | 2012 | 2013 | 2012 | |||
| Beginning balance | $ 147,953 | $ 139,121 | $ 140,434 | $ 144,433 | |||
| Net income | 3,816 | 3,246 | 14,938 | 13,106 | |||
| Other comprehensive income (loss), net of tax | (3,605) | (1,415) | (18,351) | (48) | |||
| Preferred and common cash dividends declared | (966) | (1,003) | (3,627) | (3,877) | |||
| 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 | -- | (255) | -- | (4,782) | |||
| Other ****** | 379 | 740 | 1,166 | 1,825 | |||
| Ending balance | $ 147,577 | $ 140,434 | $ 147,577 | $ 140,434 | |||
| * Includes accumulated other comprehensive income | |||||||
| **Increase is mostly the result of shares issued for conversion of Series E Preferred Stock (2,057,502 shares at $12.15/share) and acquisition of CNB (834,715 shares) | |||||||
| ***Includes accumulated other comprehensive income and excludes intangible assets | |||||||
| ****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 | ||||||
| December 31, | September 30, | December 31, | ||||
| 2013 | 2013 | 2012 | ||||
| (dollars in thousands) | ||||||
| ANALYSIS OF LOAN DATA | Amount | % | Amount | % | Amount | % |
| Nonaccrual loans/leases | $ 17,878 | 59% | $ 22,126 | 66% | $ 17,932 | 60% |
| Accruing loans/leases past due 90 days or more | 84 | 0% | 61 | 0% | 159 | 1% |
| Troubled debt restructures - accruing | 2,523 | 8% | 2,739 | 8% | 7,300 | 25% |
| Other real estate owned | 9,729 | 32% | 8,496 | 25% | 3,955 | 13% |
| Other repossessed assets | 346 | 1% | 255 | 1% | 212 | 1% |
| Total nonperforming assets | $ 30,560 | 100% | $ 33,677 | 100% | $ 29,558 | 100% |
| Net charge-offs (calendar year-to-date) | $ 4,408 | $ 1,808 | $ 3,235 | |||
| Loan/lease mix: | ||||||
| Commercial and industrial loans | $ 431,688 | 30% | $ 471,257 | 31% | $ 394,244 | 31% |
| Commercial real estate loans | 671,753 | 46% | 714,701 | 46% | 593,979 | 46% |
| Direct financing leases | 128,901 | 9% | 121,268 | 8% | 103,686 | 8% |
| Residential real estate loans | 147,356 | 10% | 150,825 | 10% | 115,582 | 9% |
| Installment and other consumer loans | 76,034 | 5% | 77,226 | 5% | 76,720 | 6% |
| Deferred loan/lease origination costs, net of fees | 4,548 | 0% | 4,106 | 0% | 3,176 | 0% |
| Total loans/leases | $ 1,460,280 | 100% | $ 1,539,383 | 100% | $ 1,287,387 | 100% |
| Less allowance for estimated losses on loans/leases | 21,448 | 22,062 | 19,925 | |||
| Net loans/leases | $ 1,438,832 | $ 1,517,321 | $ 1,267,462 | |||
| ANALYSIS OF SECURITIES DATA | ||||||
| Securities mix: | ||||||
| U.S. government sponsored agency securities | $ 356,473 | 51% | $ 367,525 | 55% | $ 338,609 | 57% |
| Municipal securities | 180,361 | 26% | 166,771 | 24% | 97,615 | 16% |
| Residential mortgage-backed and related securities | 157,429 | 23% | 166,545 | 24% | 163,601 | 27% |
| Other securities | 2,947 | 0% | 2,858 | 0% | 2,414 | 0% |
| Total securities | $ 697,210 | 100% | $ 703,699 | 102% | $ 602,239 | 100% |
| ANALYSIS OF DEPOSIT DATA | ||||||
| Deposit mix: | ||||||
| Noninterest-bearing demand deposits | $ 542,566 | 33% | $ 515,365 | 30% | $ 450,660 | 33% |
| Interest-bearing demand deposits | 715,643 | 43% | 780,546 | 45% | 587,201 | 43% |
| Time deposits | 326,852 | 20% | 382,819 | 22% | 290,933 | 21% |
| Brokered time deposits | 61,930 | 4% | 63,103 | 4% | 45,320 | 3% |
| Total deposits | $ 1,646,991 | 100% | $ 1,741,833 | 100% | $ 1,374,114 | 100% |
| ANALYSIS OF BORROWINGS DATA | ||||||
| Borrowings mix: | ||||||
| FHLB advances | $ 231,350 | 41% | $ 205,350 | 37% | $ 202,350 | 37% |
| Wholesale structured repurchase agreements | 130,000 | 23% | 130,000 | 23% | 130,000 | 24% |
| Customer repurchase agreements | 98,823 | 18% | 124,330 | 22% | 104,943 | 19% |
| Federal funds purchased | 50,470 | 9% | 44,930 | 8% | 66,140 | 12% |
| Junior subordinated debentures | 40,290 | 7% | 40,257 | 7% | 36,085 | 7% |
| Other | 12,448 | 2% | 12,646 | 2% | 8,240 | 1% |
| Total borrowings | $ 563,381 | 100% | $ 557,513 | 100% | $ 547,758 | 100% |
| QCR HOLDINGS, INC. | |||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||
| (Unaudited) | |||||
| For the Quarter Ended | For the Year Ended | ||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |
| 2013 | 2013 | 2012 | 2013 | 2012 | |
| (dollars in thousands, except per share data) | |||||
| CONDENSED INCOME STATEMENT | |||||
| Interest income | $ 21,199 | $ 21,996 | $ 18,980 | $ 81,872 | $ 77,376 |
| Interest expense | 4,303 | 4,686 | 4,679 | 17,767 | 19,727 |
| Net interest income | 16,896 | 17,310 | 14,301 | 64,105 | 57,649 |
| Provision for loan/lease losses | 1,986 | 1,367 | 1,046 | 5,930 | 4,371 |
| Net interest income after provision for loan/lease losses | 14,910 | 15,943 | 13,255 | 58,175 | 53,278 |
| Noninterest income | 7,726 | 5,935 | 4,480 | 25,814 | 16,621 |
| Noninterest expense | 18,212 | 17,027 | 13,380 | 64,433 | 52,259 |
| Net income before taxes | 4,424 | 4,851 | 4,355 | 19,556 | 17,640 |
| Income tax expense | 608 | 1,039 | 1,109 | 4,618 | 4,534 |
| Net income | $ 3,816 | $ 3,812 | $ 3,246 | $ 14,938 | $ 13,106 |
| Less: Net income attributable to noncontrolling interests | -- | -- | (6) | -- | 488 |
| Net income attributable to QCR Holdings, Inc. | $ 3,816 | $ 3,812 | $ 3,252 | $ 14,938 | $ 12,618 |
| Less: Preferred stock dividends | 736 | 811 | 811 | 3,168 | 3,496 |
| Net income attributable to QCR Holdings, Inc. common stockholders | $ 3,080 | $ 3,001 | $ 2,441 | $ 11,770 | $ 9,122 |
| Earnings per share attributable to QCR Holdings, Inc.: | |||||
| Basic | $ 0.51 | $ 0.52 | $ 0.50 | $ 2.13 | $ 1.88 |
| Diluted | $ 0.50 | $ 0.51 | $ 0.49 | $ 2.08 | $ 1.85 |
| Earnings per common share (basic) attributable to QCR Holdings, Inc. LTM * | $ 2.13 | $ 2.12 | $ 1.87 | ||
| Weighted average common shares outstanding | 6,001,120 | 5,806,019 | 4,885,470 | 5,531,948 | 4,844,776 |
| Weighted average common and common equivalent shares outstanding | 6,140,809 | 5,915,279 | 4,983,939 | 5,646,926 | 4,919,559 |
| AVERAGE BALANCES | |||||
| Assets | $ 2,432,900 | $ 2,456,167 | $ 2,062,188 | $ 2,330,604 | $ 2,025,691 |
| Loans/leases | $ 1,474,257 | $ 1,529,771 | $ 1,241,522 | $ 1,425,364 | $ 1,219,623 |
| Deposits | $ 1,706,485 | $ 1,738,310 | $ 1,364,355 | $ 1,594,939 | $ 1,310,360 |
| Total stockholders' equity | $ 149,733 | $ 146,038 | $ 140,187 | $ 145,906 | $ 141,793 |
| Common stockholders' equity | $ 106,285 | $ 93,537 | $ 86,615 | $ 102,525 | $ 84,159 |
| KEY PERFORMANCE RATIOS | |||||
| Return on average assets (annualized) *** | 0.63% | 0.62% | 0.63% | 0.64% | 0.62% |
| Return on average common equity (annualized) ** | 11.59% | 12.83% | 11.27% | 11.48% | 10.84% |
| Return on average total equity (annualized) *** | 10.19% | 10.44% | 9.28% | 10.24% | 8.90% |
| Price earnings ratio LTM * | 8.00 x | 7.50 x | 7.07 x | 8.00 x | 7.07 x |
| Net interest margin (TEY) | 3.04% | 3.07% | 3.05% | 3.03% | 3.14% |
| Nonperforming assets / total assets | 1.28% | 1.35% | 1.41% | 1.28% | 1.41% |
| Net charge-offs / average loans/leases | 0.18% | 0.03% | 0.04% | 0.31% | 0.27% |
| Allowance / total loans/leases **** | 1.47% | 1.43% | 1.55% | 1.47% | 1.55% |
| Allowance / nonperforming loans **** | 104.70% | 88.51% | 78.47% | 104.70% | 78.47% |
| Efficiency ratio | 73.97% | 73.25% | 71.24% | 71.66% | 70.36% |
| Full-time equivalent employees ***** | 400 | 431 | 356 | 400 | 356 |
| * 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. | |||||
| ***** CBT had 75 full-time equivalent employees at September 30, 2013. With branch sales and full implementation of cost savings, CBT full-time equivalents were 41 at December 31, 2013. | |||||
| QCR HOLDINGS, INC. | |||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||
| (Unaudited) | |||||||||
| ANALYSIS OF NET INTEREST INCOME AND MARGIN | |||||||||
| For the Quarter Ended | |||||||||
| December 31, 2013 | September 30, 2013 | December 31, 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 * | $ 720,737 | $ 4,398 | 2.42% | $ 717,195 | $ 4,043 | 2.24% | $ 603,001 | $ 3,495 | 2.31% |
| Loans * | 1,474,257 | 17,263 | 4.65% | 1,529,771 | 18,440 | 4.78% | 1,241,522 | 15,793 | 5.06% |
| Other | 101,676 | 246 | 0.96% | 80,903 | 226 | 1.11% | 85,561 | 222 | 1.03% |
| Total earning assets * | $ 2,296,670 | $ 21,907 | 3.78% | $ 2,327,869 | $ 22,709 | 3.87% | $ 1,930,084 | $ 19,510 | 4.02% |
| Deposits | $ 1,147,913 | $ 1,027 | 0.35% | $ 1,212,602 | $ 1,394 | 0.46% | $ 904,294 | $ 1,385 | 0.61% |
| Borrowings | 531,932 | 3,276 | 2.44% | 533,138 | 3,292 | 2.45% | 525,051 | 3,294 | 2.50% |
| Total interest-bearing liabilities | $ 1,679,845 | $ 4,303 | 1.02% | $ 1,745,740 | $ 4,686 | 1.06% | $ 1,429,345 | $ 4,679 | 1.30% |
| Net interest income / spread * | $ 17,604 | 2.76% | $ 18,023 | 2.81% | $ 14,831 | 2.72% | |||
| Net interest margin * | 3.04% | 3.07% | 3.06% | ||||||
| For the Year Ended | |||||||||
| December 31, 2013 | December 31, 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 * | $ 700,344 | $ 16,140 | 2.30% | $ 603,568 | $ 14,268 | 2.36% | |||
| Loans * | 1,425,364 | 67,484 | 4.73% | 1,219,623 | 64,100 | 5.26% | |||
| Other | 74,570 | 853 | 1.14% | 73,009 | 891 | 1.22% | |||
| Total earning assets * | $ 2,200,278 | $ 84,477 | 3.84% | $ 1,896,200 | $ 79,259 | 4.18% | |||
| Deposits | $ 1,076,533 | $ 4,715 | 0.44% | $ 898,321 | $ 6,219 | 0.69% | |||
| Borrowings | 552,776 | 13,052 | 2.36% | 545,080 | 13,508 | 2.48% | |||
| Total interest-bearing liabilities | $ 1,629,309 | $ 17,767 | 1.09% | $ 1,443,401 | $ 19,727 | 1.37% | |||
| Net interest income / spread * | $ 66,710 | 2.75% | $ 59,532 | 2.81% | |||||
| Net interest margin * | 3.03% | 3.14% | |||||||
| * 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 Year Ended | ||||
| December 31, 2013 | September 30, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | |
| ANALYSIS OF NONINTEREST INCOME | (dollars in thousands) | ||||
| Trust department fees | $ 1,392 | $ 1,312 | $ 982 | $ 4,942 | $ 3,632 |
| Investment advisory and management fees | 641 | 634 | 585 | 2,580 | 2,361 |
| Deposit service fees | 1,076 | 1,229 | 859 | 4,267 | 3,486 |
| Gain on sales of residential real estate loans | 114 | 185 | 401 | 836 | 1,388 |
| Gain on sales of government guaranteed portions of loans | 200 | 338 | 91 | 2,149 | 1,070 |
| Earnings on cash surrender value of life insurance | 458 | 466 | 412 | 1,786 | 1,609 |
| Credit card fees, net of processing costs | (18) | 58 | 190 | 175 | 599 |
| Subtotal | $ 3,863 | $ 4,222 | $ 3,520 | $ 16,735 | $ 14,145 |
| Bargain purchase gain on CNB acquisition | -- | -- | -- | 1,841 | -- |
| Gains on sales of certain Community National Bank branches | 2,334 | -- | -- | 2,334 | -- |
| Losses on other real estate owned, net | 21 | (3) | (9) | (545) | (1,333) |
| Securities gains | (1) | 417 | -- | 432 | 105 |
| Other * | 1,509 | 1,299 | 969 | 5,017 | 3,704 |
| Total noninterest income | $ 7,726 | $ 5,935 | $ 4,480 | $ 25,814 | $ 16,621 |
| ANALYSIS OF NONINTEREST EXPENSE | |||||
| Salaries and employee benefits | $ 9,779 | $ 9,803 | $ 8,693 | $ 37,510 | $ 33,275 |
| Occupancy and equipment expense | 1,782 | 1,915 | 1,458 | 6,712 | 5,635 |
| Professional and data processing fees | 1,943 | 1,903 | 975 | 6,425 | 4,318 |
| FDIC and other insurance | 691 | 713 | 574 | 2,587 | 2,331 |
| Loan/lease expense | 628 | 396 | 287 | 1,522 | 1,042 |
| Advertising and marketing | 578 | 406 | 388 | 1,727 | 1,445 |
| Postage and telephone | 316 | 277 | 244 | 1,069 | 960 |
| Stationery and supplies | 157 | 143 | 123 | 562 | 541 |
| Bank service charges | 278 | 307 | 244 | 1,145 | 854 |
| Subtotal | $ 16,152 | $ 15,863 | $ 12,986 | $ 59,259 | $ 50,401 |
| Acquisition and data conversion costs | 1,176 | 389 | -- | 2,353 | -- |
| Other-than-temporary-impairment losses on securities | -- | -- | -- | -- | 62 |
| Other | 884 | 775 | 394 | 2,821 | 1,796 |
| Total noninterest expense | $ 18,212 | $ 17,027 | $ 13,380 | $ 64,433 | $ 52,259 |
| * 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 | -- |
| Gain on sale of certain nonperforming loans | 576 | -- | -- | 576 | -- |
| Gain on sale of equity interest | -- | -- | -- | -- | 580 |
| Debit card fees | 240 | 265 | 222 | 992 | 951 |
| Fees on interest rate swaps on commercial loans | 54 | 44 | 316 | 105 | 616 |
| Miscellaneous | 639 | 990 | 431 | 2,494 | 1,557 |
| TOTAL | $ 1,509 | $ 1,299 | $ 969 | $ 5,017 | $ 3,704 |
CONTACT: Todd A. Gipple
Executive Vice President
Chief Operating Officer
Chief Financial Officer
(309) 743-7745