EXHIBIT 99.1
MOLINE, Ill., April 24, 2014 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (Nasdaq:QCRH) today announced net income of $3.9 million for the quarter ended March 31, 2014, or diluted earnings per common share ("EPS") of $0.40 after preferred stock dividends of $708 thousand. By comparison, for the quarter ended December 31, 2013, the Company reported net income of $3.8 million, or diluted EPS of $0.50 after preferred stock dividends of $736 thousand. For the first quarter of 2013, the Company reported net income of $3.3 million, or diluted EPS of $0.49 after preferred stock dividends of $811 thousand. As previously announced, on December 23, 2013, the Company converted $25.0 million of Series E Preferred Stock to common stock, which resulted in the issuance of 2,057,502 shares of common stock, or an increase of approximately 35% in the number of common shares outstanding. The conversion strengthened tangible common equity and reduced the Company's annual preferred stock dividend commitment by $1.75 million, which will help to further strengthen future tangible common equity.
Earnings Increased 26% from Prior Quarter
"We are pleased with our growth in earnings this quarter," stated Douglas M. Hultquist, President and Chief Executive Officer. "Earnings for the first quarter of 2014 totaled $3.9 million, which was an increase of 26% over the fourth quarter of 2013 (excluding the gains on branch sales and acquisition costs) and 24% over the first quarter of 2013 (excluding the gains on sales of Quad City Bank & Trust's credit card division and acquisition costs). Compared to the prior quarter, revenue was relatively flat with lower levels of provision for loans/leases ("provision") and noninterest expenses helping to drive the increase in earnings. As we have fully integrated Community Bank & Trust (formerly Community National Bank ("CNB")), we are now seeing that translate into cost reductions which were realized in the first quarter. Additionally, our earnings in the current quarter were impressive considering our low level of gains on sales of government guaranteed loans as compared to the past several years. This remains a core strategy for us, our pipeline is active and we expect these gains to increase from our first quarter results."
Net Interest Margin Expanded 7 Basis Points from Prior Quarter
Mr. Hultquist added, "Net interest income was flat from the prior quarter and increased $2.7 million, or 19%, from the first quarter of 2013. Our net interest margin improved to 3.11% from 3.04% for the prior quarter and from 3.02% for the first quarter of 2013. We continue to see favorable pricing on our municipal investments and have been able to expand our loan yields while growing loans this quarter. Our cost of funds was flat from the prior quarter, but down 20 basis points from the first quarter of 2013. These results are a testament to our talented bankers across all of our markets. It continues to be a challenging operating environment, but we are keenly focused on continuing to grow net interest income and expanding margin while balancing interest rate risk."
Loans/Leases Grew $32 Million, or 2%, in the Current Quarter
Noninterest Bearing Deposits Grew $37 Million, or 7%, in the Current Quarter
During the first quarter of 2014, the Company's total assets grew $31.4 million, or 1%, to a total of $2.43 billion. Loans/leases grew $32.3 million, or 2%, during the first quarter of 2014. The loan/lease growth was predominantly funded by noninterest bearing deposits which grew $36.5 million, or 7%.
"We are pleased with the loan and lease growth in the current quarter," remarked Todd A. Gipple, Executive Vice President, Chief Operating Officer, and Chief Financial Officer. "We are also pleased with the areas where we are seeing this growth which are commercial and industrial ($10.7 million, or 3%, over prior quarter), owner-occupied commercial real estate ($8.3 million, or 3%), and leases ($11.1 million, or 9%). Of the latter, we experienced record lease growth in the first quarter of 2014. This is an area of focus for our Company for three primary reasons: (1) we have a talented and experienced team dedicated to this line of business, (2) the portfolio quality has been strong since we entered the business in 2005, including the recent recessionary period, and (3) our lease portfolio is our highest yielding earning asset.
"Our noninterest bearing deposit portfolio continues to grow, as well, led by our Correspondent Banking Division at Quad City Bank & Trust," continued Mr. Gipple. "We continue to gain market share throughout Iowa and Illinois. Growing our Correspondent Banking Division is a strategic focus of ours and we are leading primarily with deposits and related fee-based services and secondarily with credit. Our correspondent bank loan portfolio is strongly underwritten and amounts to less than 5% of our total loans/leases."
Nonperforming Assets Improved 7% in First Quarter of 2014
Nonperforming assets at March 31, 2014 were $28.6 million, which were down $2.0 million, or 7%, from December 31, 2013. In addition, the ratio of nonperforming assets to total assets was 1.18% at March 31, 2014, which was down from 1.28% at December 31, 2013. Generally, the vast majority of the Company's nonperforming assets consist of nonaccrual loans/leases, accruing troubled debt restructurings ("TDRs"), and other real estate owned ("OREO").
"Our nonperforming loans fell $2.0 million, or 7%, during the current quarter," stated Mr. Gipple. "The majority of the improvement was the result of several larger TDRs that are accruing at market interest rates and have been current for a considerable time since the date of restructure last year. In addition, we had several nonperforming loans pay off during the current quarter. All of this happened with minimal additions to our nonperforming assets. We continue to focus on working out of 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 $1.1 million for the first quarter of 2014, which was down $892 thousand from the prior quarter, and flat compared to the first quarter of 2013. The Company had net recoveries of $111 thousand for the first quarter of 2014 which, when coupled with the provision of $1.1 million, increased the Company's allowance for loan/lease losses ("allowance") to $22.7 million at March 31, 2014. As of March 31, 2014, the Company's allowance to total loans/leases was 1.52%, which was up from 1.47% at December 31, 2013, and down from 1.61% at March 31, 2013. 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 ($2.1 million at March 31, 2014) originally established upon acquisition. The Company's allowance to total nonperforming loans/leases was 122% at March 31, 2014, which was up from 105% at December 31, 2013.
Capital Levels Remain Strong
Redemption of $15 Million of SBLF Preferred Stock
As of March 31, 2014, the Company and its subsidiary banks continued to maintain capital at levels well above the existing minimum requirements administered by the federal regulatory agencies. At present, the Company believes that its current capital structure and continued execution of its existing capital plan will be more than sufficient to meet and exceed the revised regulatory capital ratios as required by the new Basel III rules.
On March 31, 2014, as previously announced, the Company redeemed $15.0 million of Small Business Lending Fund Preferred Stock ("SBLF Preferred Stock"). The Company had originally issued $40.1 million of SBLF Preferred Stock to the United States Department of the Treasury under the Small Business Lending Fund Program in September of 2011, and previously redeemed $10.2 million of the SBLF Preferred Stock in June of 2012. As a result of the latest redemption, the Company has $14.9 million of SBLF Preferred Stock remaining.
"We were quite pleased with our latest partial redemption of the SBLF Preferred Stock as it demonstrates further execution of our long-term capital plan of organically changing our mix of capital from preferred equity to common equity," stated Mr. Gipple. "We intend to redeem the remaining SBLF Preferred Stock during 2014. The timing is important as the dividend rate on the SBLF Preferred Stock increased from 5% to 9% during the first quarter of 2014 as scheduled. The redemption frees up capital previously used for preferred stock dividends to help grow our tangible common equity and support our long-term growth plans."
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 | ||||||
| March 31, | December 31, | March 31, | ||||
| 2014 | 2013 | 2013 | ||||
| (dollars in thousands, except share data) | ||||||
| CONDENSED BALANCE SHEET | Amount | % | Amount | % | Amount | % |
| Cash, federal funds sold, and interest-bearing deposits | $ 111,403 | 5% | $ 114,431 | 5% | $ 67,036 | 3% |
| Securities | 707,107 | 29% | 697,210 | 29% | 692,552 | 32% |
| Net loans/leases | 1,469,926 | 61% | 1,438,832 | 60% | 1,271,026 | 59% |
| Core deposit intangible | 1,821 | 0% | 1,870 | 0% | -- | 0% |
| Goodwill | 3,223 | 0% | 3,223 | 0% | 3,223 | 0% |
| Other assets | 132,839 | 5% | 139,387 | 6% | 110,154 | 6% |
| Total assets | $ 2,426,319 | 100% | $ 2,394,953 | 100% | $ 2,143,991 | 100% |
| Total deposits | $ 1,671,893 | 69% | $ 1,646,991 | 68% | $ 1,420,493 | 66% |
| Total borrowings | 583,843 | 24% | 563,381 | 24% | 551,531 | 26% |
| Other liabilities | 29,226 | 1% | 37,004 | 2% | 29,769 | 1% |
| Total stockholders' equity | 141,357 | 6% | 147,577 | 6% | 142,198 | 7% |
| Total liabilities and stockholders' equity | $ 2,426,319 | 100% | $ 2,394,953 | 100% | $ 2,143,991 | 100% |
| SELECTED INFORMATION FOR COMMON STOCKHOLDERS' EQUITY | ||||||
| Common stockholders' equity * | $ 126,533 | $ 117,753 | $ 89,035 | |||
| Common shares outstanding | 7,917,362 | 7,884,462 | 4,936,316 | |||
| Book value per common share * | $ 15.98 | $ 14.94 | $ 18.04 | |||
| Tangible book value per common share ** | $ 15.34 | $ 14.29 | $ 17.38 | |||
| Closing stock price | $ 17.16 | $ 17.03 | $ 16.50 | |||
| Market capitalization | $ 135,862 | $ 134,272 | $ 81,449 | |||
| Market price / book value | 107.37% | 114.00% | 91.48% | |||
| Market price / tangible book value | 111.84% | 119.17% | 94.94% | |||
| Tangible common equity *** / total tangible assets (TCE/TA) | 5.02% | 4.71% | 4.01% | |||
| TCE/TA excluding accumulated other comprehensive income (loss) | 5.36% | 5.29% | 3.83% | |||
| REGULATORY CAPITAL RATIOS: | ||||||
| Total risk-based capital ratio | 12.23% | **** | 12.87% | 13.04% | ||
| Tier 1 risk-based capital ratio | 10.83% | **** | 11.45% | 11.60% | ||
| Tier 1 leverage capital ratio | 7.62% | **** | 7.96% | 8.07% | ||
| For the quarter ended March 31, | ||||||
| CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY | 2014 | 2013 | ||||
| Beginning balance | $ 147,577 | $ 140,434 | ||||
| Net income | 3,889 | 3,265 | ||||
| Other comprehensive income (loss), net of tax | 5,231 | (836) | ||||
| Preferred and common cash dividends declared | (708) | (811) | ||||
| Redemption of 15,000 shares of Series F Preferred Stock | (15,000) | -- | ||||
| Other ***** | 368 | 146 | ||||
| Ending balance | $ 141,357 | $ 142,198 | ||||
| * Includes accumulated other comprehensive income (loss). | ||||||
| **Includes accumulated other comprehensive income (loss) 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 | ||||||
| March 31, | December 31, | March 31, | ||||
| 2014 | 2013 | 2013 | ||||
| (dollars in thousands) | ||||||
| ANALYSIS OF LOAN DATA | Amount | % | Amount | % | Amount | % |
| Nonaccrual loans/leases | $ 17,653 | 62% | $ 17,878 | 59% | $ 18,040 | 76% |
| Accruing loans/leases past due 90 days or more | 5 | 0% | 84 | 0% | 1 | 0% |
| Troubled debt restructures - accruing | 974 | 3% | 2,523 | 8% | 1,682 | 7% |
| Total nonperforming loans/leases | 18,632 | 65% | 20,485 | 67% | 19,723 | 83% |
| Other real estate owned | 9,675 | 34% | 9,729 | 32% | 3,679 | 16% |
| Other repossessed assets | 252 | 1% | 346 | 1% | 282 | 1% |
| Total nonperforming assets | $ 28,559 | 100% | $ 30,560 | 100% | $ 23,684 | 100% |
| Net charge-offs (recoveries) - calendar year-to-date | $ (111) | $ 4,408 | $ 214 | |||
| Loan/lease mix: | ||||||
| Commercial and industrial loans | $ 442,350 | 30% | $ 431,688 | 30% | $ 398,122 | 31% |
| Commercial real estate loans | 679,228 | 46% | 671,753 | 46% | 598,634 | 46% |
| Direct financing leases | 139,994 | 9% | 128,901 | 9% | 109,654 | 8% |
| Residential real estate loans | 148,950 | 10% | 147,356 | 10% | 115,548 | 9% |
| Installment and other consumer loans | 76,810 | 5% | 76,034 | 5% | 66,294 | 6% |
| Deferred loan/lease origination costs, net of fees | 5,247 | 0% | 4,548 | 0% | 3,543 | 0% |
| Total loans/leases | $ 1,492,579 | 100% | $ 1,460,280 | 100% | $ 1,291,795 | 100% |
| Less allowance for estimated losses on loans/leases | 22,653 | 21,448 | 20,769 | |||
| Net loans/leases | $ 1,469,926 | $ 1,438,832 | $ 1,271,026 | |||
| ANALYSIS OF SECURITIES DATA | ||||||
| Securities mix: | ||||||
| U.S. government sponsored agency securities | $ 350,338 | 50% | $ 356,473 | 51% | $ 403,840 | 58% |
| Municipal securities | 195,655 | 28% | 180,361 | 26% | 174,802 | 25% |
| Residential mortgage-backed and related securities | 158,119 | 22% | 157,429 | 23% | 111,347 | 17% |
| Other securities | 2,995 | 0% | 2,947 | 0% | 2,563 | 0% |
| Total securities | $ 707,107 | 100% | $ 697,210 | 100% | $ 692,552 | 100% |
| ANALYSIS OF DEPOSIT DATA | ||||||
| Deposit mix: | ||||||
| Noninterest-bearing demand deposits | $ 579,110 | 34% | $ 542,566 | 33% | $ 496,513 | 35% |
| Interest-bearing demand deposits | 715,527 | 43% | 715,643 | 43% | 586,874 | 41% |
| Time deposits | 297,874 | 18% | 326,852 | 20% | 297,768 | 21% |
| Brokered time deposits | 79,382 | 5% | 61,930 | 4% | 39,338 | 3% |
| Total deposits | $ 1,671,893 | 100% | $ 1,646,991 | 100% | $ 1,420,493 | 100% |
| ANALYSIS OF BORROWINGS DATA | ||||||
| Borrowings mix: | ||||||
| FHLB advances | $ 235,700 | 40% | $ 231,350 | 41% | $ 205,350 | 37% |
| Wholesale structured repurchase agreements | 130,000 | 22% | 130,000 | 23% | 130,000 | 24% |
| Customer repurchase agreements | 136,649 | 24% | 98,823 | 18% | 141,674 | 26% |
| Federal funds purchased | 28,920 | 5% | 50,470 | 9% | 30,180 | 5% |
| Junior subordinated debentures | 40,323 | 7% | 40,290 | 7% | 36,085 | 7% |
| Other | 12,251 | 2% | 12,448 | 2% | 8,242 | 1% |
| Total borrowings | $ 583,843 | 100% | $ 563,381 | 100% | $ 551,531 | 100% |
| QCR HOLDINGS, INC. | ||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||
| (Unaudited) | ||||||
| For the Quarter Ended | ||||||
| March 31, | December 31, | March 31, | ||||
| 2014 | 2013 | 2013 | ||||
| (dollars in thousands, except per share data) | ||||||
| CONDENSED INCOME STATEMENT | ||||||
| Interest income | $ 21,035 | $ 21,199 | $ 18,537 | |||
| Interest expense | 4,186 | 4,303 | 4,346 | |||
| Net interest income | 16,849 | 16,896 | 14,191 | |||
| Provision for loan/lease losses | 1,094 | 1,986 | 1,058 | |||
| Net interest income after provision for loan/lease losses | 15,755 | 14,910 | 13,133 | |||
| Noninterest income | 4,747 | 7,726 | 5,204 | |||
| Noninterest expense | 16,141 | 18,212 | 13,958 | |||
| Net income before taxes | 4,361 | 4,424 | 4,379 | |||
| Income tax expense | 472 | 608 | 1,114 | |||
| Net income | $ 3,889 | $ 3,816 | $ 3,265 | |||
| Less: Preferred stock dividends | 708 | 736 | 811 | |||
| Net income attributable to QCR Holdings, Inc. common stockholders | $ 3,181 | $ 3,080 | $ 2,454 | |||
| Earnings per share attributable to QCR Holdings, Inc.: | ||||||
| Basic | $ 0.40 | $ 0.51 | $ 0.50 | |||
| Diluted | $ 0.40 | $ 0.50 | $ 0.49 | |||
| Earnings per common share (basic) attributable to QCR Holdings, Inc. LTM * | $ 2.03 | $ 2.13 | $ 1.89 | |||
| Weighted average common shares outstanding | 7,901,035 | 6,001,120 | 4,927,591 | |||
| Weighted average common and common equivalent shares outstanding | 8,030,043 | 6,140,809 | 5,034,342 | |||
| AVERAGE BALANCES | ||||||
| Assets | $ 2,434,158 | $ 2,432,900 | $ 2,110,012 | |||
| Loans/leases | $ 1,465,061 | $ 1,474,257 | $ 1,279,040 | |||
| Deposits | $ 1,683,216 | $ 1,706,485 | $ 1,383,865 | |||
| Total stockholders' equity | $ 150,063 | $ 149,733 | $ 141,183 | |||
| Common stockholders' equity | $ 122,143 | $ 106,285 | $ 88,153 | |||
| KEY PERFORMANCE RATIOS | ||||||
| Return on average assets (annualized) *** | 0.64% | 0.63% | 0.62% | |||
| Return on average common equity (annualized) ** | 10.42% | 11.59% | 11.14% | |||
| Return on average total equity (annualized) *** | 10.37% | 10.19% | 9.25% | |||
| Price earnings ratio LTM * | 8.45 | x | 8.00 | x | 8.73 | x |
| Net interest margin (TEY) | 3.11% | 3.04% | 3.02% | |||
| Nonperforming assets / total assets | 1.18% | 1.28% | 1.10% | |||
| Net charge-offs (recoveries) / average loans/leases | -0.01% | 0.18% | 0.02% | |||
| Allowance / total loans/leases **** | 1.52% | 1.47% | 1.61% | |||
| Allowance / nonperforming loans **** | 121.58% | 104.70% | 105.30% | |||
| Efficiency ratio | 74.74% | 73.97% | 71.97% | |||
| Full-time equivalent employees | 403 | 400 | 352 | |||
| * 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". | ||||||
| **** Upon acquisition per GAAP, the loans are recorded at market value which eliminated the allowance and impacts these ratios. | ||||||
| QCR HOLDINGS, INC. | |||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||
| (Unaudited) | |||||||||
| ANALYSIS OF NET INTEREST INCOME AND MARGIN | |||||||||
| For the Quarter Ended | |||||||||
| March 31, 2014 | December 31, 2013 | March 31, 2013 | |||||||
| 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 * | $ 722,220 | $ 4,655 | 2.61% | $ 720,737 | $ 4,398 | 2.42% | $ 648,638 | $ 3,656 | 2.29% |
| Loans * | 1,465,061 | 16,968 | 4.70% | 1,474,257 | 17,263 | 4.65% | 1,279,040 | 15,251 | 4.84% |
| Other | 116,620 | 223 | 0.78% | 101,676 | 246 | 0.96% | 55,598 | 186 | 1.36% |
| Total earning assets * | $ 2,303,901 | $ 21,846 | 3.85% | $ 2,296,670 | $ 21,907 | 3.78% | $ 1,983,276 | $ 19,093 | 3.90% |
| Deposits | $ 1,097,775 | $ 1,102 | 0.41% | $ 1,147,913 | $ 1,027 | 0.35% | $ 896,601 | $ 1,117 | 0.51% |
| Borrowings | 567,239 | 3,084 | 2.20% | 531,932 | 3,276 | 2.44% | 552,619 | 3,229 | 2.37% |
| Total interest-bearing liabilities | $ 1,665,014 | $ 4,186 | 1.02% | $ 1,679,845 | $ 4,303 | 1.02% | $ 1,449,220 | 4,346 | 1.22% |
| Net interest income / spread * | $ 17,660 | 2.83% | $ 17,604 | 2.76% | $ 14,747 | 2.68% | |||
| Net interest margin * | 3.11% | 3.04% | 3.02% | ||||||
| * 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. | |||||||||
| For the Quarter Ended | |||||||||
| March 31, 2014 | December 31, 2013 | March 31, 2013 | |||||||
| ANALYSIS OF NONINTEREST INCOME | (dollars in thousands) | ||||||||
| Trust department fees | $ 1,500 | $ 1,392 | $ 1,040 | ||||||
| Investment advisory and management fees | 649 | 641 | 609 | ||||||
| Deposit service fees | 1,046 | 1,076 | 908 | ||||||
| Gain on sales of residential real estate loans | 63 | 114 | 291 | ||||||
| Gain on sales of government guaranteed portions of loans | 194 | 200 | 845 | ||||||
| Earnings on cash surrender value of life insurance | 454 | 458 | 439 | ||||||
| Subtotal | $ 3,906 | $ 3,881 | $ 4,132 | ||||||
| Gains on sales of certain Community National Bank branches | -- | 2,334 | -- | ||||||
| Losses on other real estate owned, net | (18) | 21 | (447) | ||||||
| Securities gains | 21 | (1) | -- | ||||||
| Other * | 838 | 1,491 | 1,519 | ||||||
| Total noninterest income | $ 4,747 | $ 7,726 | $ 5,204 | ||||||
| ANALYSIS OF NONINTEREST EXPENSE | |||||||||
| Salaries and employee benefits | $ 10,018 | $ 9,779 | $ 8,743 | ||||||
| Occupancy and equipment expense | 1,894 | 1,782 | 1,429 | ||||||
| Professional and data processing fees | 1,584 | 1,943 | 1,140 | ||||||
| FDIC and other insurance | 715 | 691 | 556 | ||||||
| Loan/lease expense | 346 | 628 | 245 | ||||||
| Advertising and marketing | 338 | 578 | 265 | ||||||
| Postage and telephone | 291 | 316 | 219 | ||||||
| Stationery and supplies | 152 | 157 | 111 | ||||||
| Bank service charges | 298 | 278 | 275 | ||||||
| Subtotal | $ 15,636 | $ 16,152 | $ 12,983 | ||||||
| Acquisition and data conversion costs | -- | 1,176 | 357 | ||||||
| Other | 505 | 884 | 618 | ||||||
| Total noninterest expense | $ 16,141 | $ 18,212 | $ 13,958 | ||||||
| * Following is a detailed breakdown of Other Noninterest Income: | |||||||||
| Debit card fees | $ 231 | $ 240 | $ 230 | ||||||
| Correspondent banking fees | 232 | 235 | 158 | ||||||
| Participation service fees on commercial loan participations | 206 | 205 | 167 | ||||||
| Fees on interest rate swaps on commercial loans | 62 | 54 | 7 | ||||||
| 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 | -- | ||||||
| Miscellaneous | 107 | 181 | 107 | ||||||
| TOTAL | $ 838 | $ 1,491 | $ 1,519 | ||||||
CONTACT: Todd A. Gipple
Executive Vice President
Chief Operating Officer
Chief Financial Officer
(309) 743-7745