EXHIBIT 99.1
MOLINE, Ill., Oct. 22, 2014 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (Nasdaq:QCRH) today announced net income of $4.1 million for the quarter ended September 30, 2014, or diluted earnings per common share ("EPS") of $0.50, with no preferred stock dividends due to the redemption of all outstanding shares of Series F Preferred Stock in the second quarter of 2014. By comparison, for the quarter ended June 30, 2014, the Company reported net income of $4.0 million, or diluted EPS of $0.45 after preferred stock dividends of $374 thousand. For the third quarter of 2013, the Company reported net income of $3.8 million, or diluted EPS of $0.51 after preferred stock dividends of $811 thousand. On December 23, 2013, the Company converted all $25.0 million of its outstanding shares of Series E Preferred Stock to common stock, which resulted in the issuance of 2,057,502 shares of common stock. The conversion strengthened tangible common equity ("TCE") and reduced the Company's annual preferred stock dividend commitment by $1.75 million, which will help to further strengthen future TCE and increase earnings per share.
Earnings Reached a New Record of $4.1 Million
"Earnings for the quarter reached a new high of $4.1 million," stated Douglas M. Hultquist, President and Chief Executive Officer. "We continue to have success increasing net income each quarter, as we grow earning assets, shift our mix of earning assets, and grow our noninterest income generating lines of business such as correspondent banking, trust, and brokerage. Although we are pleased with the growing trend in net income, we are focused on improving profitability with a long-term target minimum return on assets ("ROA") of 1.00%."
Net Interest Margin Expanded 1 Basis Point from Prior Quarter
Mr. Hultquist added, "Net interest income dollars increased 3% over the prior quarter, as we continue to see modest margin expansion. Most of this expansion is due to a shift in the mix of earning assets. Over the last several years, excess cash was invested in the securities portfolio as loan demand was outpaced by deposit growth. Specifically, since year-end 2009, deposits increased $625 million, while net loans only grew $328 million (down from 69% to 63% of total assets). At the same time, the securities portfolio increased $282 million (up from 21% to 27% of total assets). More recently, however, loan and lease demand has picked up, and we are now focused on shifting funds from lower-yielding investment securities into higher-yielding loans and leases. This shift is being facilitated by the sale of securities, as market opportunities allow. Year-to-date, the Company has sold $65.8 million of securities at a modest net gain. These funds were then reinvested into loans and leases earning significantly higher rates. We hope to continue this shift going forward, as growing loans and leases as a percentage of assets is a strategic initiative of the Company, with a target loans and leases to assets percentage of 72%. This migration will also help us continue to expand net interest margin and ROA in the future."
Loans/Lease Growth Steady at $23.5 Million, or 2%, in the Current Quarter
During the third quarter of 2014, the Company's total assets decreased $14.2 million, or 1%, to a total of $2.45 billion, while loans/leases grew $23.5 million, or 2%, during the quarter. As mentioned above, the loan/lease growth was predominantly funded by securities sales. Deposits grew 2%, which was more than offset by the decline in borrowings.
"We have had solid success growing loans and leases in 2014, with year-to-date growth of $112.6 million, resulting in a 10% annualized growth rate," commented Todd A. Gipple, Executive Vice President, Chief Operating Officer, and Chief Financial Officer. "This growth was split between commercial and industrial loans ($48.1 million, or 11%, over prior year-end), commercial real estate ($26.0 million, or 4%, over prior year-end) and leases ($33.6 million, or 26%, over prior year-end). Although lease growth in the third quarter was slightly lower than prior quarters, the Company continues to focus on this specialty-lending area, as we have a talented and experienced team dedicated to this line of business, the portfolio quality has been strong since we entered the business in 2005, including through the recent recessionary period, and our lease portfolio is our highest yielding earning asset. We also continue to see strong loan pipelines at all of our bank charters and the local economies in each of our markets are showing some modest growth. Although competition remains fierce in all markets, our bankers have consistently proven that they are the trusted advisors to small businesses and we continue to build strong relationships with our clients."
Nonperforming Assets Increased $8.2 Million During Third Quarter
Nonperforming loans at September 30, 2014 were $28.5 million, which were up $8.6 million from June 30, 2014. In addition, the ratio of nonperforming assets to total assets was 1.61% at September 30, 2014, which was up from 1.27% at June 30, 2014. Generally, the vast majority of the Company's nonperforming assets ("NPAs") consist of nonaccrual loans/leases, accruing troubled debt restructurings, and other real estate owned.
"Our nonperforming assets increased $8.2 million during the current quarter," stated Mr. Gipple. "The increase was driven primarily by two large relationships, totaling $9.7 million, which deteriorated during the quarter. We continue to see improvement in the overall quality of our loan portfolio and we believe the recent increase in NPAs is an isolated event – not reflective of the overall portfolio quality or local market conditions. Given the results for the past two quarters, the Company is placing additional focus on this area in order to reduce NPA levels."
The Company's provision for loan/lease losses totaled $1.1 million for the third quarter of 2014, which was up $61 thousand from the prior quarter, and down $304 thousand compared to the third quarter of 2013. The Company had net charge-offs of $1.4 million for the third quarter of 2014 which, when coupled with the provision of $1.1 million, decreased the Company's allowance for loan/lease losses ("allowance") to $22.8 million at September 30, 2014. As of September 30, 2014, the Company's allowance to total loans/leases was 1.45%, which was down from 1.49% at June 30, 2014, and up from 1.43% at September 30, 2013. In accordance with generally accepted accounting principles for acquisition accounting, the loans acquired through the acquisition of Community National Bank ("CNB") in May 2013 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 ($1.5 million at September 30, 2014) originally established upon acquisition. The Company's allowance to total nonperforming loans/leases was 80% at September 30, 2014, which was down from 116% at June 30, 2014, and down from 89% at September 30, 2013.
Capital Levels Remain Strong
QCR Holdings, Inc. Continues to Execute
on the Company's Long-Term Capital Plan
"With the redemption of the final $14.9 million in Small Business Lending Fund ("SBLF") Preferred Stock in the second quarter, we continue to demonstrate successful execution of our long-term capital plan," stated Mr. Gipple. "The complete redemption of all of the Company's SBLF Preferred Stock, when combined with our December 2013 conversion of all $25 million of Series E Convertible Preferred Stock, has significantly changed our mix of capital from preferred equity to common equity. Since June of 2012, we have converted or redeemed $65.1 million of preferred equity and have now completely eliminated any ongoing preferred dividend commitment, while at the same time increasing our common equity by $52.0 million and our TCE ratio from 3.94% on June 30, 2012 to 5.45% on September 30, 2014. We have been able to accomplish these results without a separate common equity issuance that could have been dilutive to earnings per share and tangible book value per share."
Mr. Gipple continued, "In addition to fully converting or redeeming our preferred equity and eliminating our preferred dividend commitment, the execution of our capital plan continues to demonstrate our ability to organically reach our intended target for our TCE ratio of 6.5% through continued earnings growth and prudent management of capital. The Company and our subsidiary banks continue to maintain capital at levels well above the existing minimum requirements administered by the federal regulatory agencies. Our capital plan is also consistent with the requirements of the new regulatory capital guidelines that go into effect in 2015 under Basel III."
As previously announced, on June 30, 2014, the Company filed a universal shelf registration statement on Form S-3 with the Securities and Exchange Commission ("SEC"). This registration statement, declared effective by the SEC on July 14, 2014, will allow the Company to issue various types of securities, from time to time, up to an aggregate amount of $75.0 million. The specific terms and prices of the securities will be determined at the time of any future offering and described in a separate prospectus supplement, which would be filed with the SEC at the time of the particular offering, if any. Mr. Gipple added, "By taking the additional action of filing the shelf registration statement, we are now in a position to more quickly take advantage of accretive acquisition opportunities."
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.
This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such state.
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 SEC.
| QCR HOLDINGS, INC. | |||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||
| (Unaudited) | |||||||||
| As of | |||||||||
| September 30, | June 30, | December 31, | September 30, | ||||||
| 2014 | 2014 | 2013 | 2013 | ||||||
| (dollars in thousands, except share data) | |||||||||
| CONDENSED BALANCE SHEET | Amount | % | Amount | % | Amount | % | Amount | % | |
| Cash, federal funds sold, and interest-bearing deposits | $ 106,718 | 4% | $ 113,569 | 5% | $ 114,431 | 5% | $ 122,779 | 5% | |
| Securities | 652,785 | 27% | 682,122 | 28% | 697,210 | 29% | 703,699 | 28% | |
| Net loans/leases | 1,550,101 | 63% | 1,526,301 | 62% | 1,438,832 | 60% | 1,517,321 | 61% | |
| Core deposit intangible | 1,721 | 0% | 1,771 | 0% | 1,870 | 0% | 3,311 | 0% | |
| Goodwill | 3,223 | 0% | 3,223 | 0% | 3,223 | 0% | 3,223 | 0% | |
| Other assets | 136,048 | 6% | 137,853 | 5% | 139,387 | 6% | 135,381 | 6% | |
| Total assets | $ 2,450,596 | 100% | $ 2,464,839 | 100% | $ 2,394,953 | 100% | $ 2,485,714 | 100% | |
| Total deposits | $ 1,713,867 | 70% | $ 1,677,368 | 69% | $ 1,646,991 | 68% | $ 1,741,832 | 70% | |
| Total borrowings | 550,532 | 22% | 619,031 | 25% | 563,381 | 24% | 557,513 | 22% | |
| Other liabilities | 48,017 | 2% | 33,797 | 1% | 37,004 | 2% | 38,416 | 2% | |
| Total stockholders' equity | 138,180 | 6% | 134,643 | 5% | 147,577 | 6% | 147,953 | 6% | |
| Total liabilities and stockholders' equity | $ 2,450,596 | 100% | $ 2,464,839 | 100% | $ 2,394,953 | 100% | $ 2,485,714 | 100% | |
| SELECTED INFORMATION FOR COMMON STOCKHOLDERS' EQUITY | |||||||||
| Common stockholders' equity * | $ 138,180 | $ 134,643 | $ 117,753 | $ 94,791 | |||||
| Common shares outstanding | 7,936,813 | 7,928,643 | 7,884,462 | 5,810,602 | |||||
| Book value per common share * | $ 17.41 | $ 16.98 | $ 14.94 | $ 16.31 | |||||
| Tangible book value per common share ** | $ 16.79 | $ 16.35 | $ 14.29 | $ 15.19 | |||||
| Closing stock price | $ 17.66 | $ 17.25 | $ 17.03 | $ 15.89 | |||||
| Market capitalization | $ 140,164 | $ 136,769 | $ 134,272 | $ 92,330 | |||||
| Market price / book value | 101.44% | 101.58% | 114.00% | 97.40% | |||||
| Market price / tangible book value | 105.20% | 105.50% | 119.17% | 104.64% | |||||
| Tangible common equity *** / total tangible assets (TCE/TA) | 5.45% | 5.27% | 4.71% | 3.56% | |||||
| TCE/TA excluding accumulated other comprehensive income (loss) | 5.64% | 5.43% | 5.29% | 3.96% | |||||
| REGULATORY CAPITAL RATIOS: | |||||||||
| Total risk-based capital ratio | 11.36% | **** | 11.09% | 12.87% | 12.25% | ||||
| Tier 1 risk-based capital ratio | 9.96% | **** | 9.67% | 11.45% | 10.84% | ||||
| Tier 1 leverage capital ratio | 7.11% | **** | 7.06% | 7.96% | 7.77% | ||||
| For the quarter ended September 30, | For the nine months ended September 30, | ||||||||
| CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY | 2014 | 2013 | 2014 | 2013 | |||||
| Beginning balance | $ 134,643 | $ 145,446 | $ 147,577 | $ 140,434 | |||||
| Net income | 4,063 | 3,812 | 11,960 | 11,122 | |||||
| Other comprehensive income (loss), net of tax | (812) | (818) | 8,895 | (14,746) | |||||
| Preferred and common cash dividends declared | -- | (811) | (1,397) | (2,663) | |||||
| Issuance of 834,715 shares of common stock for acquisition of CNB, net | -- | -- | -- | 13,017 | |||||
| Redemption of 15,000 shares of Series F Preferred Stock | -- | -- | (15,000) | -- | |||||
| Redemption of 14,867 shares of Series F Preferred Stock | -- | -- | (14,824) | -- | |||||
| Other ***** | 286 | 324 | 969 | 789 | |||||
| Ending balance | $ 138,180 | $ 147,953 | $ 138,180 | $ 147,953 | |||||
| *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 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, | June 30, | December 31, | September 30, | |||||
| 2014 | 2014 | 2013 | 2013 | |||||
| (dollars in thousands) | ||||||||
| ANALYSIS OF LOAN DATA | Amount | % | Amount | % | Amount | % | Amount | % |
| Nonaccrual loans/leases | $ 26,337 | 67% | $ 17,652 | 57% | $ 17,878 | 59% | $ 22,126 | 66% |
| Accruing loans/leases past due 90 days or more | 55 | 0% | 104 | 0% | 84 | 0% | 61 | 0% |
| Troubled debt restructures - accruing | 2,129 | 5% | 2,184 | 7% | 2,523 | 8% | 2,739 | 8% |
| Total nonperforming loans/leases | 28,521 | 72% | 19,940 | 64% | 20,485 | 67% | 24,926 | 74% |
| Other real estate owned | 10,680 | 27% | 10,951 | 35% | 9,729 | 32% | 8,496 | 25% |
| Other repossessed assets | 210 | 1% | 290 | 1% | 346 | 1% | 255 | 1% |
| Total nonperforming assets | $ 39,411 | 100% | $ 31,181 | 100% | $ 30,560 | 100% | $ 33,677 | 100% |
| Net charge-offs - calendar year-to-date | $ 1,839 | $ 477 | $ 4,408 | $ 1,808 | ||||
| Loan/lease mix: | ||||||||
| Commercial and industrial loans | $ 479,747 | 31% | $ 480,494 | 31% | $ 431,688 | 30% | $ 471,257 | 31% |
| Commercial real estate loans | 697,728 | 44% | 683,376 | 44% | 671,753 | 46% | 714,701 | 46% |
| Direct financing leases | 162,476 | 10% | 155,004 | 10% | 128,901 | 9% | 121,268 | 8% |
| Residential real estate loans | 154,954 | 10% | 153,200 | 10% | 147,356 | 10% | 150,825 | 10% |
| Installment and other consumer loans | 71,760 | 5% | 71,443 | 5% | 76,034 | 5% | 77,226 | 5% |
| Deferred loan/lease origination costs, net of fees | 6,204 | 0% | 5,851 | 0% | 4,548 | 0% | 4,106 | 0% |
| Total loans/leases | $ 1,572,869 | 100% | $ 1,549,368 | 100% | $ 1,460,280 | 100% | $ 1,539,383 | 100% |
| Less allowance for estimated losses on loans/leases | 22,768 | 23,067 | 21,448 | 22,062 | ||||
| Net loans/leases | $ 1,550,101 | $ 1,526,301 | $ 1,438,832 | $ 1,517,321 | ||||
| ANALYSIS OF SECURITIES DATA | ||||||||
| Securities mix: | ||||||||
| U.S. government sponsored agency securities | $ 306,005 | 47% | $ 325,620 | 48% | $ 356,473 | 51% | $ 367,525 | 52% |
| Municipal securities | 216,050 | 33% | 199,595 | 29% | 180,361 | 26% | 166,545 | 24% |
| Residential mortgage-backed and related securities | 127,780 | 20% | 153,895 | 23% | 157,429 | 23% | 166,771 | 24% |
| Other securities | 2,950 | 0% | 3,012 | 0% | 2,947 | 0% | 2,858 | 0% |
| Total securities | $ 652,785 | 100% | $ 682,122 | 100% | $ 697,210 | 100% | $ 703,699 | 100% |
| ANALYSIS OF DEPOSIT DATA | ||||||||
| Deposit mix: | ||||||||
| Noninterest-bearing demand deposits | $ 535,967 | 31% | $ 531,063 | 31% | $ 542,566 | 33% | $ 515,365 | 30% |
| Interest-bearing demand deposits | 762,954 | 44% | 760,242 | 46% | 715,643 | 43% | 780,546 | 45% |
| Time deposits | 319,105 | 19% | 298,011 | 18% | 326,852 | 20% | 382,819 | 22% |
| Brokered time deposits | 95,841 | 6% | 88,052 | 5% | 61,930 | 4% | 63,103 | 4% |
| Total deposits | $ 1,713,867 | 100% | $ 1,677,368 | 100% | $ 1,646,991 | 100% | $ 1,741,833 | 100% |
| ANALYSIS OF BORROWINGS DATA | ||||||||
| Borrowings mix: | ||||||||
| FHLB advances | $ 196,500 | 36% | $ 222,900 | 36% | $ 231,350 | 41% | $ 205,350 | 37% |
| Wholesale structured repurchase agreements | 130,000 | 24% | 130,000 | 21% | 130,000 | 23% | 130,000 | 23% |
| Customer repurchase agreements | 135,697 | 24% | 114,712 | 19% | 98,823 | 18% | 124,330 | 22% |
| Federal funds purchased | 26,490 | 5% | 89,610 | 14% | 50,470 | 9% | 44,930 | 8% |
| Junior subordinated debentures | 40,390 | 7% | 40,356 | 7% | 40,290 | 7% | 40,257 | 7% |
| Other | 21,455 | 4% | 21,453 | 3% | 12,448 | 2% | 12,646 | 2% |
| Total borrowings | $ 550,532 | 100% | $ 619,031 | 100% | $ 563,381 | 100% | $ 557,513 | 100% |
| QCR HOLDINGS, INC. | ||||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | ||||||||||
| (Unaudited) | ||||||||||
| For the Quarter Ended | For the Nine Months Ended | |||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||
| 2014 | 2014 | 2013 | 2014 | 2013 | ||||||
| (dollars in thousands, except per share data) | ||||||||||
| CONDENSED INCOME STATEMENT | ||||||||||
| Interest income | $ 21,796 | $ 21,105 | $ 21,996 | $ 63,937 | $ 60,673 | |||||
| Interest expense | 4,321 | 4,140 | 4,686 | 12,647 | 13,463 | |||||
| Net interest income | 17,475 | 16,965 | 17,310 | 51,290 | 47,210 | |||||
| Provision for loan/lease losses | 1,063 | 1,002 | 1,367 | 3,159 | 3,945 | |||||
| Net interest income after provision for loan/lease losses | 16,412 | 15,963 | 15,943 | 48,131 | 43,265 | |||||
| Noninterest income | 5,068 | 5,344 | 5,935 | 15,158 | 18,087 | |||||
| Noninterest expense | 16,388 | 16,106 | 17,027 | 48,635 | 46,220 | |||||
| Net income before taxes | 5,092 | 5,201 | 4,851 | 14,654 | 15,132 | |||||
| Income tax expense | 1,029 | 1,193 | 1,039 | 2,694 | 4,010 | |||||
| Net income | $ 4,063 | $ 4,008 | $ 3,812 | $ 11,960 | $ 11,122 | |||||
| Less: Preferred stock dividends | -- | 374 | 811 | 1,082 | 2,432 | |||||
| Net income attributable to QCR Holdings, Inc. common stockholders | $ 4,063 | $ 3,634 | $ 3,001 | $ 10,878 | $ 8,690 | |||||
| Earnings per share attributable to QCR Holdings, Inc.: | ||||||||||
| Basic | $ 0.51 | $ 0.46 | $ 0.52 | $ 1.37 | $ 1.62 | |||||
| Diluted | $ 0.50 | $ 0.45 | $ 0.51 | $ 1.35 | $ 1.59 | |||||
| Earnings per common share (basic) attributable to QCR Holdings, Inc. LTM * | $ 1.88 | $ 1.89 | $ 2.12 | |||||||
| Weighted average common shares outstanding | 7,931,944 | 7,924,624 | 5,806,019 | 7,919,201 | 5,375,557 | |||||
| Weighted average common and common equivalent shares outstanding | 8,053,985 | 8,050,514 | 5,915,279 | 8,040,418 | 5,482,298 | |||||
| AVERAGE BALANCES | ||||||||||
| Assets | $ 2,467,191 | $ 2,425,665 | $ 2,456,167 | $ 2,442,338 | $ 2,296,505 | |||||
| Loans/leases | $ 1,572,638 | $ 1,518,902 | $ 1,529,771 | $ 1,518,867 | $ 1,409,067 | |||||
| Deposits | $ 1,727,115 | $ 1,677,525 | $ 1,738,310 | $ 1,695,952 | $ 1,557,757 | |||||
| Total stockholders' equity | $ 136,403 | $ 142,530 | $ 146,038 | $ 142,999 | $ 144,631 | |||||
| Common stockholders' equity | $ 136,403 | $ 130,588 | $ 93,538 | $ 129,277 | $ 91,031 | |||||
| KEY PERFORMANCE RATIOS | ||||||||||
| Return on average assets (annualized) *** | 0.66% | 0.66% | 0.62% | 0.65% | 0.65% | |||||
| Return on average common equity (annualized) ** | 11.91% | 11.13% | 12.83% | 11.22% | 12.73% | |||||
| Return on average total equity (annualized) *** | 11.91% | 11.25% | 10.44% | 11.15% | 10.25% | |||||
| Price earnings ratio LTM * | 9.39 | x | 9.13 | x | 7.50 | x | 9.39 | x | 7.50 | x |
| Net interest margin (TEY) | 3.15% | 3.14% | 3.07% | 3.13% | 3.03% | |||||
| Nonperforming assets / total assets | 1.61% | 1.27% | 1.35% | 1.61% | 1.35% | |||||
| Net charge-offs / average loans/leases | 0.09% | 0.03% | 0.03% | 0.12% | 0.13% | |||||
| Allowance / total loans/leases **** | 1.45% | 1.49% | 1.43% | 1.45% | 1.43% | |||||
| Allowance / nonperforming loans **** | 79.83% | 115.68% | 88.51% | 79.83% | 88.51% | |||||
| Efficiency ratio | 72.70% | 72.20% | 73.25% | 73.19% | 70.78% | |||||
| Full-time equivalent employees | 412 | 414 | 431 | 412 | 431 | |||||
| * 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 acquired 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 | |||||||||
| September 30, 2014 | June 30, 2014 | September 30, 2013 | |||||||
| Average | Interest | Average Yield | Average | Interest | Average Yield | Average | Interest | Average Yield | |
| Balance | Earned or Paid | or Cost | Balance | Earned or Paid | or Cost | Balance | Earned or Paid | or Cost | |
| (dollars in thousands) | |||||||||
| Securities * | $ 673,416 | $ 4,644 | 2.74% | $ 702,579 | $ 4,765 | 2.72% | $ 717,195 | $ 4,043 | 2.24% |
| Loans * | 1,572,638 | 18,003 | 4.54% | 1,518,902 | 17,093 | 4.51% | 1,529,771 | 18,440 | 4.78% |
| Other | 85,718 | 202 | 0.93% | 72,372 | 214 | 1.19% | 80,903 | 226 | 1.11% |
| Total earning assets * | $ 2,331,772 | $ 22,849 | 3.89% | $ 2,293,853 | $ 22,072 | 3.86% | $ 2,327,869 | $ 22,709 | 3.87% |
| Deposits | $ 1,167,501 | $ 1,168 | 0.40% | $ 1,100,751 | $ 1,102 | 0.40% | $ 1,212,602 | $ 1,394 | 0.46% |
| Borrowings | 572,353 | 3,153 | 2.19% | 573,984 | 3,038 | 2.12% | 533,138 | 3,292 | 2.45% |
| Total interest-bearing liabilities | $ 1,739,854 | $ 4,321 | 0.99% | $ 1,674,735 | $ 4,140 | 0.99% | $ 1,745,740 | 4,686 | 1.06% |
| Net interest income / spread * | $ 18,528 | 2.90% | $ 17,932 | 2.87% | $ 18,023 | 2.81% | |||
| Net interest margin * | 3.15% | 3.14% | 3.07% | ||||||
| For the Nine Months Ended | |||||||||
| September 30, 2014 | September 30, 2013 | ||||||||
| Average | Interest | Average Yield | Average | Interest | Average Yield | ||||
| Balance | Earned or Paid | or Cost | Balance | Earned or Paid | or Cost | ||||
| (dollars in thousands) | |||||||||
| Securities * | $ 699,405 | $ 14,063 | 2.69% | $ 693,547 | $ 11,742 | 2.26% | |||
| Loans * | 1,518,867 | 52,063 | 4.58% | 1,409,067 | 50,221 | 4.77% | |||
| Other | 91,570 | 640 | 0.93% | 65,533 | 606 | 1.24% | |||
| Total earning assets * | $ 2,309,842 | $ 66,766 | 3.86% | $ 2,168,147 | $ 62,569 | 3.86% | |||
| Deposits | $ 1,122,009 | $ 3,372 | 0.40% | $ 1,052,740 | $ 3,687 | 0.47% | |||
| Borrowings | 571,192 | 9,275 | 2.17% | 559,724 | 9,776 | 2.34% | |||
| Total interest-bearing liabilities | $ 1,693,201 | $ 12,647 | 1.00% | $ 1,612,464 | $ 13,463 | 1.12% | |||
| Net interest income / spread * | $ 54,119 | 2.86% | $ 49,106 | 2.74% | |||||
| Net interest margin * | 3.13% | 3.03% | |||||||
| * Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 35% tax rate for each period presented. | |||||||||
| QCR HOLDINGS, INC. | |||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||
| (Unaudited) | |||||
| For the Quarter Ended | For the Nine Months Ended | ||||
| September 30, 2014 | June 30, 2014 | September 30, 2013 | September 30, 2014 | September 30, 2013 | |
| ANALYSIS OF NONINTEREST INCOME | (dollars in thousands) | ||||
| Trust department fees | $ 1,356 | $ 1,444 | $ 1,312 | $ 4,300 | $ 3,549 |
| Investment advisory and management fees | 727 | 711 | 634 | 2,087 | 1,939 |
| Deposit service fees | 1,169 | 1,092 | 1,229 | 3,307 | 3,191 |
| Gain on sales of residential real estate loans | 121 | 133 | 185 | 317 | 722 |
| Gain on sales of government guaranteed portions of loans | 159 | 508 | 338 | 861 | 1,949 |
| Earnings on cash surrender value of life insurance | 434 | 389 | 466 | 1,277 | 1,329 |
| Subtotal | $ 3,966 | $ 4,277 | $ 4,164 | $ 12,149 | $ 12,679 |
| Bargain purchase gain on CNB acquisition | -- | -- | -- | -- | $ 1,841 |
| Gains (losses) on other real estate owned, net | 31 | (127) | (3) | (114) | (567) |
| Securities gains | 19 | 1 | 417 | 41 | 433 |
| Other * | 1,052 | 1,193 | 1,357 | 3,082 | 3,701 |
| Total noninterest income | $ 5,068 | $ 5,344 | $ 5,935 | $ 15,158 | $ 18,087 |
| ANALYSIS OF NONINTEREST EXPENSE | |||||
| Salaries and employee benefits | $ 10,359 | $ 9,922 | $ 9,803 | $ 30,299 | $ 27,732 |
| Occupancy and equipment expense | 1,806 | 1,839 | 1,915 | 5,539 | 4,931 |
| Professional and data processing fees | 1,530 | 1,404 | 1,903 | 4,518 | 4,482 |
| FDIC and other insurance | 712 | 695 | 713 | 2,122 | 1,896 |
| Loan/lease expense | 185 | 377 | 396 | 908 | 893 |
| Advertising and marketing | 555 | 502 | 406 | 1,394 | 1,083 |
| Postage and telephone | 147 | 258 | 277 | 696 | 753 |
| Stationery and supplies | 138 | 146 | 143 | 436 | 405 |
| Bank service charges | 337 | 324 | 307 | 959 | 866 |
| Subtotal | $ 15,769 | $ 15,467 | $ 15,863 | $ 46,871 | $ 43,041 |
| Acquisition and data conversion costs | -- | -- | 389 | -- | 1,178 |
| Other | 619 | 639 | 775 | 1,764 | 2,001 |
| Total noninterest expense | $ 16,388 | $ 16,106 | $ 17,027 | $ 48,635 | $ 46,220 |
| * Following is a detailed breakdown of Other Noninterest Income: | |||||
| Debit card fees | $ 252 | $ 281 | $ 265 | $ 763 | $ 752 |
| Correspondent banking fees | 295 | 219 | 214 | 746 | 536 |
| Participation service fees on commercial loan participations | 218 | 208 | 214 | 632 | 563 |
| Income earned on other real estate owned | 97 | 197 | 12 | 328 | 17 |
| Credit card issuing fees, net of processing costs | 76 | 91 | 58 | 258 | 193 |
| Gain on the disposal of leased assets | 89 | 71 | 38 | 108 | 80 |
| Fees on interest rate swaps on commercial loans | -- | -- | 44 | 62 | 51 |
| Gain on sale of credit card loan portfolio | -- | -- | -- | -- | 495 |
| Gain on sale of credit card issuing operations | -- | -- | -- | -- | 355 |
| Lawsuit award | -- | -- | 446 | -- | 446 |
| Miscellaneous | 25 | 126 | 66 | 185 | 213 |
| TOTAL | $ 1,052 | $ 1,193 | $ 1,357 | $ 3,082 | $ 3,701 |
CONTACT: Todd A. Gipple
Executive Vice President
Chief Operating Officer
Chief Financial Officer
(309) 743-7745