EXHIBIT 99.1
QCR Holdings, Inc. Announces Record Net Income of $6.8 Million for the Fourth Quarter of 2015 and Record Net Income of $16.9 Million for the Year
MOLINE, Ill., Feb. 02, 2016 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ:QCRH) today announced net income of $6.8 million and diluted earnings per share (“EPS”) of $0.57 for the quarter ended December 31, 2015. By comparison, for the quarter ended September 30, 2015, the Company reported net income of $6.5 million and diluted EPS of $0.55. For the fourth quarter of 2014, the Company reported net income of $3.0 million, and diluted EPS of $0.37. As a result of the redemption of all of the Company’s remaining outstanding shares of preferred stock in the second quarter of 2014, none of these periods included preferred stock dividends.
For the year ended December 31, 2015, the Company reported net income of $16.9 million and diluted EPS of $1.61. By comparison, for the year ended December 31, 2014, the Company reported net income of $15.0 million, and diluted EPS of $1.72, after preferred stock dividends of $1.1 million.
Continued Strong Core Net Income Momentum and Core ROAA Results
The Company reported core net income (non-GAAP) for the quarter ending December 31, 2015 of $6.3 million, with diluted core EPS of $0.53. Core net income for the quarter excludes gains on the sale of securities of $211 thousand, a gain on debt extinguishment of $195 thousand, losses on debt extinguishment of $384 thousand and one-time reductions in noninterest expenses of $487 thousand due to the reversal of certain accruals, primarily in data processing and occupancy expense. By comparison, the Company reported core net income of $6.2 million and diluted core EPS of $0.52 for the quarter ended September 30, 2015. For the quarter ended December 31, 2014, the Company reported core net income of $3.0 million and diluted core EPS of $0.37.
For the year ended December 31, 2015, the Company reported core net income (non-GAAP) of $20.9 million, with diluted core EPS of $1.99. Core net income for the year excludes a number of non-recurring items, most significantly the $4.9 million of after-tax non-recurring expenses related to the prepayment of wholesale borrowings.
“We are quite pleased with our operating performance in the fourth quarter,” commented Douglas M. Hultquist, President and Chief Executive Officer, “as organic loan growth was strong, growth in noninterest bearing deposits was robust and fee income for the quarter was solid. Our core return on average assets (“ROAA”) has improved significantly from a year ago. Core ROAA was 0.96% for the fourth quarter. By comparison, core ROAA was 0.97% and 0.48% for the quarters ending September 30, 2015 and December 31, 2014, respectively. We have nearly achieved our targeted ROAA of 1.00% and we will continue to enhance profitability through our ongoing key initiatives.”
Loan and Lease Growth Strong at 10.3% for Year
Swap Fee Income and Gains on the Sale of Government Guaranteed Loans Total $940 Thousand for the Quarter
During the fourth quarter of 2015, the Company’s total assets increased $17.3 million, or 1%, to a total of $2.59 billion, while total loans and leases grew $42.4 million. The loan and lease growth was funded primarily by deposit growth. Deposits grew $25.3 million, or 1%, during the quarter, while borrowings decreased $11.9 million.
“Loan and lease growth for the year totaled $168.0 million, or 10.3%,” commented Todd A. Gipple, Executive Vice President, Chief Operating Officer and Chief Financial Officer. “Loan growth was strong in the fourth quarter at 2.4%, helping us reach our targeted annual organic growth rate of 10-12%. Solid loan and lease growth has continued to help us move our loan and lease to total asset ratio upward to 69%, from 68% in the third quarter of 2015 and from 65% one year ago. We intend to continue increasing this ratio as we rotate out of securities and into loans and leases, with a goal of growing loans and leases to more than 70% of total assets.”
“Swap fee income and gains on the sale of government guaranteed loans have been strong this year, totaling $3.0 million,” said Mr. Gipple. “We plan to continue executing these types of transactions, as they provide unique solutions for our clients. Our goal is to grow these revenue streams to a combined $4.0 million annually in 2016.”
Net Interest Margin Expanded 22 Basis Points Year-Over-Year
Net interest income totaled $19.9 million for the quarter ended December 31, 2015. By comparison, net interest income totaled $20.1 million and $17.8 million for the quarters ended September 30, 2015 and December 31, 2014, respectively. Net interest income totaled $76.3 million for the year ended December 31, 2015, an increase of 10% compared to the same period of the prior year.
“Net interest margin percentage decreased 10 basis points from the prior quarter to 3.41%,” stated Mr. Gipple. He added, “This contraction was primarily due to excess liquidity that was carried throughout most of the fourth quarter. Average fed funds sold and interest bearing deposits increased $41.2 million over the prior quarter and earned 35 basis points on average. Also contributing to the contraction in margin was a decrease in average loan yield, which was primarily driven by the addition of floating rate loans with an average interest rate that was 1.30%-1.50% lower than the fixed rate loans originated in the same period. While these loans have a lower loan yield in the near-term, they will help the Company’s interest rate risk position in a rising rate environment.”
Nonperforming Assets Decreased $1.5 Million, or 7%, During the Fourth Quarter
Nonperforming loans and leases at December 31, 2015 were $11.7 million, a decrease of $607 thousand, or 5%, from September 30, 2015. In addition, the ratio of nonperforming assets (“NPAs”) to total assets was 0.74% at December 31, 2015, which was down from 0.80% at September 30, 2015.
“We continue to see improvement in our asset quality measurements, with NPAs decreasing 7% this quarter. We focused on further reducing our NPAs to total assets ratio and were successful in achieving this goal during the fourth quarter. The reduction of our NPAs was primarily due to the sale of a large other real estate property during the quarter, as well as paydowns of nonaccrual loans,” stated Mr. Hultquist. “We remain committed to further improving our asset quality ratios in 2016.”
The Company’s provision for loan and lease losses totaled $1.2 million for the fourth quarter of 2015, which was down $458 thousand from the prior quarter, and down $2.5 million compared to the fourth quarter of 2014.
Provision expense of $1.2 million for the fourth quarter of 2015 was partially offset by net charge-offs of $570 thousand, increasing the Company’s allowance for loan and lease losses (“allowance”) to $26.1 million at December 31, 2015. As of December 31, 2015, the Company’s allowance to total loans and leases was 1.45%, which was flat from September 30, 2015, and up from 1.42% at December 31, 2014.
The Company’s allowance to total nonperforming loans/leases was 223% at December 31, 2015, which was up from 207% at September 30, 2015, and up from 115% at December 31, 2014, as improved asset quality has resulted in an increased coverage ratio.
Continued Balance Sheet Restructuring
Trust Preferred Securities Repurchased at Discount and Junior Subordinated Debentures Retired
In the fourth quarter of 2015, the Company executed a balance sheet restructuring strategy at Rockford Bank & Trust in which $8.0 million of wholesale borrowings were prepaid at a weighted average interest rate of 3.66%. As a result of this restructuring, the Company incurred $591 thousand (pre-tax) in losses on debt extinguishment that were recognized in the fourth quarter. The weighted average duration of this debt was 3.04 years, with $5.0 million maturing in 2019 and $3.0 million maturing in 2018. This funding was replaced with short-term borrowings at an average interest rate of 0.50%. This restructuring is expected to reduce interest expense by $252 thousand annually.
In December 2015, the Company extinguished $2.1 million of the QCR Holdings Capital Trust II junior subordinated debentures and recorded a $300 thousand gain on extinguishment (pre-tax), as the Company was able to acquire the related security at a discount through auction. The interest rate on these debentures floated at 3-month LIBOR plus 2.85% and had a rate of 3.18% at the time of extinguishment.
The Company was provided with an additional opportunity to retire a portion of its outstanding junior subordinated debentures, and in January 2016, the Company extinguished $5.1 million of the QCR Holdings Capital Trust IV junior subordinated debentures, recording a $1.2 million gain on extinguishment (pre-tax), as the Company was able to acquire the related security at a discount through auction. The interest rate on these debentures floated at 3-month LIBOR plus 1.80% and had a rate of 2.12% at the time of extinguishment.
Also in January 2016, the Company executed additional balance sheet restructuring strategies at Quad City Bank & Trust and Cedar Rapids Bank & Trust, which included the repayment of $20.0 million of wholesale borrowings with a weighted average interest rate of 3.92%. As a result of this restructuring, the Company incurred $1.3 million (pre-tax) in losses on debt extinguishment that were recognized in the first quarter of 2016. The weighted average duration of this debt was 2.17 years, with $10.0 million maturing in 2017 and $10.0 maturing in 2018. This funding was replaced with short-term borrowings at an average interest rate of 0.50%. This restructuring is expected to reduce interest expense by $683 thousand annually. The impact of the 2016 junior subordinated debenture retirement and subsequent balance sheet restructure are not reported in the 2015 results, but will be reflected in first quarter 2016 results.
“The Company continues to look for opportunities to restructure the balance sheet in order to further reduce wholesale borrowings, while improving net interest margin,” stated Mr. Gipple. “The gains recognized on debt extinguishment through the repurchase of trust preferred securities provided a unique opportunity to leverage non-core income to improve future core results. The strategies executed in December 2015 and January 2016 are estimated to improve net interest margin by 4 basis points and ROAA by 2 basis points, while the earnback period is expected to be less than two years.”
Capital Levels Remain Strong
The Company’s total risk-based capital ratio was 13.20%, the common equity tier 1 ratio was 10.37% and the tangible common equity to tangible common assets ratio increased to 8.55%, all as of December 31, 2015. For comparison, these respective ratios were 10.30%, 7.24% and 5.88% as of March 31, 2015, which was the quarter prior to the Company’s capital issuance and debt restructuring previously discussed. Both the total risk-based capital ratio and the common equity tier 1 ratio are well above the fully phased-in requirements under Basel III. The increase in the Company’s capital ratios was primarily due to the capital raise executed in the second quarter of 2015, as well as strong earnings in the third and fourth quarters.
Continued Focus on Seven Key Initiatives
The Company continues to focus on the following initiatives in an effort to continue to improve profitability and drive increased shareholder value:
- Grow loans and leases to more than 70% of total assets
- Continue to reduce wholesale funding to less than 15% of assets
- Grow gains on the sale of USDA and SBA loans, and fee income on swaps, to a more significant and consistent component of core revenue
- Grow wealth management net income by 15% annually
- Eliminate identified noninterest expenses and manage annual expense growth
- Return asset quality metrics to better than peer levels
- Participate as an acquirer in the consolidation taking place in our markets to further boost ROAA, improve efficiency ratio, and increase EPS
About Us
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 wealth management services. Quad City Bank & Trust Company also provides correspondent banking services. In addition, Quad City Bank & Trust Company engages in commercial leasing through its wholly owned subsidiary, m2 Lease Funds, LLC, based in Milwaukee, Wisconsin. With the acquisition of Community National Bancorporation in 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 the Basel III regulatory capital reforms, 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; (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, | ||||||||||||||||||||||||||
| 2015 | 2015 | 2014 | ||||||||||||||||||||||||||
| (dollars in thousands, except share data) | ||||||||||||||||||||||||||||
| CONDENSED BALANCE SHEET | Amount | % | Amount | % | ||||||||||||||||||||||||
| Cash, federal funds sold, and interest-bearing deposits | $ | 97,906 | 4 | % | $ | 107,659 | 4 | % | $ | 120,350 | 5 | % | ||||||||||||||||
| Securities | 577,109 | 22 | % | 590,775 | 23 | % | 651,539 | 26 | % | |||||||||||||||||||
| Net loans/leases | 1,771,882 | 68 | % | 1,730,138 | 67 | % | 1,606,929 | 64 | % | |||||||||||||||||||
| Core deposit intangible | 1,471 | 0 | % | 1,521 | 0 | % | 1,671 | 0 | % | |||||||||||||||||||
| Goodwill | 3,223 | 0 | % | 3,223 | 0 | % | 3,223 | 0 | % | |||||||||||||||||||
| Other assets | 141,607 | 6 | % | 142,539 | 6 | % | 141,246 | 5 | % | |||||||||||||||||||
| Total assets | $ | 2,593,198 | 100 | % | $ | 2,575,855 | 100 | % | $ | 2,524,958 | 100 | % | ||||||||||||||||
| Total deposits | $ | 1,880,666 | 72 | % | $ | 1,855,319 | 72 | % | $ | 1,679,668 | 67 | % | ||||||||||||||||
| Total borrowings | 444,162 | 17 | % | 456,091 | 18 | % | 662,558 | 26 | % | |||||||||||||||||||
| Other liabilities | 42,484 | 2 | % | 43,330 | 2 | % | 38,653 | 1 | % | |||||||||||||||||||
| Total stockholders' equity | 225,886 | 9 | % | 221,115 | 8 | % | 144,079 | 6 | % | |||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,593,198 | 100 | % | $ | 2,575,855 | 100 | % | $ | 2,524,958 | 100 | % | ||||||||||||||||
| SELECTED INFORMATION FOR COMMON STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||
| Common stockholders' equity (1) | $ | 225,886 | $ | 221,115 | $ | 144,079 | ||||||||||||||||||||||
| Common shares outstanding | 11,761,083 | 11,728,911 | 7,953,197 | |||||||||||||||||||||||||
| Book value per common share (1) | $ | 19.21 | $ | 18.85 | $ | 18.12 | ||||||||||||||||||||||
| Tangible book value per common share (2) | $ | 18.81 | $ | 18.45 | $ | 17.50 | ||||||||||||||||||||||
| Closing stock price | $ | 24.29 | $ | 21.87 | $ | 17.86 | ||||||||||||||||||||||
| Market capitalization | $ | 285,677 | $ | 256,511 | $ | 142,044 | ||||||||||||||||||||||
| Market price / book value | 126.47 | % | 116.01 | % | 98.59 | % | ||||||||||||||||||||||
| Market price / tangible book value | 129.15 | % | 118.55 | % | 102.05 | % | ||||||||||||||||||||||
| Tangible common equity / total tangible assets (TCE/TA) (3) | 8.55 | % | 8.42 | % | 5.52 | % | ||||||||||||||||||||||
| REGULATORY CAPITAL RATIOS: | ||||||||||||||||||||||||||||
| Total risk-based capital ratio | 13.20 | % | (4 | ) | 13.06 | % | 10.91 | % | ||||||||||||||||||||
| Tier 1 risk-based capital ratio | 11.95 | % | (4 | ) | 11.83 | % | 9.52 | % | ||||||||||||||||||||
| Tier 1 leverage capital ratio | 9.65 | % | (4 | ) | 9.73 | % | 7.62 | % | ||||||||||||||||||||
| Common equity tier 1 ratio | 10.37 | % | (4 | ) | 10.16 | % | N/A | |||||||||||||||||||||
| For the quarter ended December 31, | For the twelve months ended December 31, | |||||||||||||||||||||||||||
| CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||
| Beginning balance | $ | 221,115 | $ | 138,180 | $ | 144,079 | $ | 147,577 | ||||||||||||||||||||
| Net income | 6,785 | 2,993 | 16,928 | 14,953 | ||||||||||||||||||||||||
| Other comprehensive income (loss) , net of tax | (2,287 | ) | 2,814 | (189 | ) | 11,709 | ||||||||||||||||||||||
| Preferred and common cash dividends declared | (469 | ) | (316 | ) | (935 | ) | (1,713 | ) | ||||||||||||||||||||
| Proceeds from issuance of 3,680,000 shares of common stock, net of costs | - | - | 63,484 | - | ||||||||||||||||||||||||
| Redemption of 29,867 shares of Series F Preferred Stock | - | - | - | (29,824 | ) | |||||||||||||||||||||||
| Other (5) | 742 | 408 | 2,519 | 1,377 | ||||||||||||||||||||||||
| Ending balance | $ | 225,886 | $ | 144,079 | $ | 225,886 | $ | 144,079 | ||||||||||||||||||||
| (1) Includes accumulated other comprehensive income (loss). | ||||||||||||||||||||||||||||
| (2) Includes accumulated other comprehensive income (loss) and excludes intangible assets. | ||||||||||||||||||||||||||||
| (3) See GAAP to non-GAAP reconciliations. | ||||||||||||||||||||||||||||
| (4) Subject to change upon final calculation for regulatory filings due after earnings release. | ||||||||||||||||||||||||||||
| (5) 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, | |||||||||||||||||||
| 2015 | 2015 | 2014 | |||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| ANALYSIS OF LOAN DATA | Amount | % | Amount | % | Amount | % | |||||||||||||||
| Loan/lease mix: | |||||||||||||||||||||
| Commercial and industrial loans | $ | 648,160 | 36 | % | $ | 647,398 | 37 | % | $ | 523,927 | 32 | % | |||||||||
| Commercial real estate loans | 724,369 | 40 | % | 692,569 | 39 | % | 702,140 | 43 | % | ||||||||||||
| Direct financing leases | 173,656 | 10 | % | 173,304 | 10 | % | 166,032 | 10 | % | ||||||||||||
| Residential real estate loans | 170,433 | 10 | % | 165,061 | 10 | % | 158,633 | 10 | % | ||||||||||||
| Installment and other consumer loans | 73,669 | 4 | % | 69,863 | 4 | % | 72,607 | 5 | % | ||||||||||||
| Deferred loan/lease origination costs, net of fees | 7,736 | 0 | % | 7,477 | 0 | % | 6,664 | 0 | % | ||||||||||||
| Total loans/leases | $ | 1,798,023 | 100 | % | $ | 1,755,672 | 100 | % | $ | 1,630,003 | 100 | % | |||||||||
| Less allowance for estimated losses on loans/leases | 26,141 | 25,534 | 23,074 | ||||||||||||||||||
| Net loans/leases | $ | 1,771,882 | $ | 1,730,138 | $ | 1,606,929 | |||||||||||||||
| ANALYSIS OF SECURITIES DATA | |||||||||||||||||||||
| Securities mix: | |||||||||||||||||||||
| U.S. government sponsored agency securities | $ | 213,537 | 37 | % | $ | 247,625 | 42 | % | $ | 307,869 | 47 | % | |||||||||
| Municipal securities | 280,203 | 49 | % | 265,293 | 45 | % | 229,230 | 35 | % | ||||||||||||
| Residential mortgage-backed and related securities | 80,670 | 14 | % | 74,901 | 13 | % | 111,423 | 17 | % | ||||||||||||
| Other securities | 2,699 | 0 | % | 2,956 | 0 | % | 3,017 | 1 | % | ||||||||||||
| Total securities | $ | 577,109 | 100 | % | $ | 590,775 | 100 | % | $ | 651,539 | 100 | % | |||||||||
| ANALYSIS OF DEPOSIT DATA | |||||||||||||||||||||
| Deposit mix: | |||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 615,292 | 33 | % | $ | 585,300 | 32 | % | $ | 511,992 | 30 | % | |||||||||
| Interest-bearing demand deposits | 886,294 | 47 | % | 879,149 | 47 | % | 778,570 | 47 | % | ||||||||||||
| Time deposits | 309,974 | 16 | % | 302,978 | 16 | % | 306,364 | 18 | % | ||||||||||||
| Brokered deposits | 69,106 | 4 | % | 87,892 | 5 | % | 82,742 | 5 | % | ||||||||||||
| Total deposits | $ | 1,880,666 | 100 | % | $ | 1,855,319 | 100 | % | $ | 1,679,668 | 100 | % | |||||||||
| ANALYSIS OF BORROWINGS DATA | |||||||||||||||||||||
| Borrowings mix: | |||||||||||||||||||||
| FHLB advances | $ | 151,000 | 34 | % | $ | 133,000 | 29 | % | $ | 203,500 | 31 | % | |||||||||
| Wholesale structured repurchase agreements | 110,000 | 25 | % | 115,000 | 25 | % | 130,000 | 19 | % | ||||||||||||
| Customer repurchase agreements | 73,873 | 16 | % | 74,404 | 16 | % | 137,252 | 21 | % | ||||||||||||
| Federal funds purchased | 70,790 | 16 | % | 93,160 | 21 | % | 131,100 | 20 | % | ||||||||||||
| Junior subordinated debentures | 38,499 | 9 | % | 40,527 | 9 | % | 40,424 | 6 | % | ||||||||||||
| Other | - | 0 | % | - | 0 | % | 20,282 | 3 | % | ||||||||||||
| Total borrowings | $ | 444,162 | 100 | % | $ | 456,091 | 100 | % | $ | 662,558 | 100 | % | |||||||||
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
| As of | |||||||||||||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||||||||||||
| 2015 | 2015 | 2014 | |||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||
| NONPERFORMING ASSETS | Amount | % | Amount | % | Amount | % | |||||||||||||||||||
| Nonaccrual loans/leases | $ | 10,648 | 56 | % | $ | 11,269 | 55 | % | $ | 18,588 | 56 | % | |||||||||||||
| Accruing loans/leases past due 90 days or more | 3 | 0 | % | 3 | 0 | % | 93 | 0 | % | ||||||||||||||||
| Troubled debt restructures - accruing | 1,054 | 6 | % | 1,040 | 5 | % | 1,421 | 5 | % | ||||||||||||||||
| Total nonperforming loans/leases | 11,705 | 61 | % | 12,312 | 60 | % | 20,102 | 61 | % | ||||||||||||||||
| Other real estate owned | 7,151 | 37 | % | 8,140 | 39 | % | 12,768 | 39 | % | ||||||||||||||||
| Other repossessed assets | 246 | 1 | % | 194 | 1 | % | 155 | 0 | % | ||||||||||||||||
| Total nonperforming assets | $ | 19,102 | 100 | % | $ | 20,646 | 100 | % | $ | 33,025 | 100 | % | |||||||||||||
| For the quarter ended December 31, | For the twelve months ended December 31, | ||||||||||||||||||||||||
| ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||
| Beginning balance | $ | 25,534 | $ | 22,768 | $ | 23,074 | $ | 21,448 | |||||||||||||||||
| Provision charged to expense | 1,177 | 3,648 | 6,871 | 6,807 | |||||||||||||||||||||
| Loans/leases charged off | (1,106 | ) | (3,650 | ) | (5,225 | ) | (6,136 | ) | |||||||||||||||||
| Recoveries on loans/leases previously charged off | 536 | 308 | 1,421 | 955 | |||||||||||||||||||||
| Ending balance | $ | 26,141 | $ | 23,074 | $ | 26,141 | $ | 23,074 | |||||||||||||||||
| Net charge-offs / average loans/leases | 0.03 | % | 0.21 | % | 0.22 | % | 0.34 | % | |||||||||||||||||
| As of | |||||||||||||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||||||||||||
| 2015 | 2015 | 2014 | |||||||||||||||||||||||
| ASSET QUALITY RATIOS | |||||||||||||||||||||||||
| Nonperforming assets / total assets | 0.74 | % | 0.80 | % | 1.31 | % | |||||||||||||||||||
| Allowance / total loans/leases (1) | 1.45 | % | 1.45 | % | 1.42 | % | |||||||||||||||||||
| Allowance / nonperforming loans (1) | 223.33 | % | 207.39 | % | 114.78 | % | |||||||||||||||||||
| (1) 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)
| For the Quarter Ended | For the Twelve Months Ended | |||||||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
| (dollars in thousands, except per share data) | ||||||||||||||||||||||||
| CONDENSED INCOME STATEMENT | ||||||||||||||||||||||||
| Interest income | $ | 22,910 | $ | 23,141 | $ | 22,028 | $ | 90,003 | $ | 85,965 | ||||||||||||||
| Interest expense | 3,024 | 3,004 | 4,247 | 13,707 | 16,894 | |||||||||||||||||||
| Net interest income | 19,886 | 20,137 | 17,781 | 76,296 | 69,071 | |||||||||||||||||||
| Provision for loan/lease losses | 1,177 | 1,635 | 3,648 | 6,871 | 6,807 | |||||||||||||||||||
| Net interest income after provision for loan/lease losses | 18,709 | 18,502 | 14,133 | 69,425 | 62,264 | |||||||||||||||||||
| Noninterest income | 6,478 | 6,369 | 6,078 | 24,530 | 21,158 | |||||||||||||||||||
| Noninterest expense | 16,139 | 15,913 | 16,874 | 73,358 | 65,430 | |||||||||||||||||||
| Net income before taxes | 9,048 | 8,958 | 3,337 | 20,597 | 17,992 | |||||||||||||||||||
| Income tax expense | 2,263 | 2,469 | 344 | 3,669 | 3,039 | |||||||||||||||||||
| Net income | $ | 6,785 | $ | 6,489 | $ | 2,993 | $ | 16,928 | $ | 14,953 | ||||||||||||||
| Less: Preferred stock dividends | - | - | - | - | 1,082 | |||||||||||||||||||
| Net income attributable to QCR Holdings, Inc. common stockholders | $ | 6,785 | $ | 6,489 | $ | 2,993 | $ | 16,928 | $ | 13,871 | ||||||||||||||
| Earnings per common share: | ||||||||||||||||||||||||
| Basic | $ | 0.58 | $ | 0.55 | $ | 0.38 | $ | 1.64 | $ | 1.75 | ||||||||||||||
| Diluted | $ | 0.57 | $ | 0.55 | $ | 0.37 | $ | 1.61 | $ | 1.72 | ||||||||||||||
| Earnings per common share (basic) LTM (1) | $ | 1.64 | $ | 1.40 | $ | 1.75 | ||||||||||||||||||
| Weighted average common shares outstanding | 11,744,495 | 11,713,993 | 7,943,275 | 10,345,286 | 7,925,220 | |||||||||||||||||||
| Weighted average common and common equivalent shares outstanding | 11,926,038 | 11,875,930 | 8,073,386 | 10,499,841 | 8,048,661 | |||||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||||||
| Assets | $ | 2,611,276 | $ | 2,563,739 | $ | 2,487,698 | $ | 2,549,921 | $ | 2,453,678 | ||||||||||||||
| Loans/leases | $ | 1,764,275 | $ | 1,744,043 | $ | 1,604,928 | $ | 1,707,523 | $ | 1,540,382 | ||||||||||||||
| Deposits | $ | 1,978,737 | $ | 1,881,604 | $ | 1,747,249 | $ | 1,851,584 | $ | 1,708,777 | ||||||||||||||
| Total stockholders' equity | $ | 223,553 | $ | 216,453 | $ | 141,942 | $ | 192,489 | $ | 142,735 | ||||||||||||||
| KEY PERFORMANCE RATIOS AND OTHER METRICS | ||||||||||||||||||||||||
| Return on average assets (annualized) (2) | 1.04 | % | 1.01 | % | 0.48 | % | 0.66 | % | 0.61 | % | ||||||||||||||
| Return on average total equity (annualized) (2) | 12.14 | % | 11.99 | % | 8.43 | % | 8.79 | % | 10.48 | % | ||||||||||||||
| Price earnings ratio LTM (1) | 14.81 | x | 15.62 | x | 10.21 | x | 14.81 | x | 10.21 | x | ||||||||||||||
| Net interest margin (TEY) | 3.41 | % | 3.51 | % | 3.20 | % | 3.37 | % | 3.15 | % | ||||||||||||||
| Efficiency ratio | 61.22 | % | 61.88 | % | 70.43 | % | 72.76 | % | 72.47 | % | ||||||||||||||
| Gross loans and leases / total assets ratio | 69.34 | % | 68.16 | % | 64.56 | % | 69.34 | % | 64.56 | % | ||||||||||||||
| Full-time equivalent employees | 406 | 406 | 409 | 406 | 409 | |||||||||||||||||||
| (1) LTM: Last twelve months. | ||||||||||||||||||||||||
| (2) The numerator for this ratio is "Net income". | ||||||||||||||||||||||||
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
| ANALYSIS OF NET INTEREST INCOME AND MARGIN | ||||||||||||||||||||||||||||||||
| For the Quarter Ended | ||||||||||||||||||||||||||||||||
| December 31, 2015 | September 30, 2015 | December 31, 2014 | ||||||||||||||||||||||||||||||
| 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 (1) | $ | 572,531 | $ | 4,673 | 3.24 | % | $ | 591,538 | $ | 4,683 | 3.14 | % | $ | 657,092 | $ | 4,616 | 2.79 | % | ||||||||||||||
| Loans (1) | 1,764,275 | 19,330 | 4.35 | % | 1,744,043 | 19,564 | 4.45 | % | 1,604,928 | 18,351 | 4.54 | % | ||||||||||||||||||||
| Other | 128,691 | 228 | 0.70 | % | 88,039 | 202 | 0.91 | % | 86,218 | 209 | 0.96 | % | ||||||||||||||||||||
| Total earning assets (1) | $ | 2,465,497 | $ | 24,231 | 3.90 | % | $ | 2,423,620 | $ | 24,449 | 4.00 | % | $ | 2,348,238 | $ | 23,176 | 3.92 | % | ||||||||||||||
| Deposits | $ | 1,271,612 | $ | 1,199 | 0.37 | % | $ | 1,236,571 | $ | 1,140 | 0.37 | % | $ | 1,166,884 | $ | 1,137 | 0.39 | % | ||||||||||||||
| Borrowings | 374,602 | 1,825 | 1.93 | % | 434,750 | 1,863 | 1.70 | % | 561,955 | 3,110 | 2.20 | % | ||||||||||||||||||||
| Total interest-bearing liabilities | $ | 1,646,214 | $ | 3,024 | 0.73 | % | $ | 1,671,321 | $ | 3,003 | 0.71 | % | $ | 1,728,839 | 4,247 | 0.97 | % | |||||||||||||||
| Net interest income / spread (1) | $ | 21,207 | 3.17 | % | $ | 21,446 | 3.29 | % | $ | 18,929 | 2.95 | % | ||||||||||||||||||||
| Net interest margin (1) | 3.41 | % | 3.51 | % | 3.20 | % | ||||||||||||||||||||||||||
| For the Twelve Months Ended | ||||||||||||||||||||||||||||||||
| December 31, 2015 | December 31, 2014 | |||||||||||||||||||||||||||||||
| Average Balance | Interest Earned or Paid | Average Yield or Cost | Average Balance | Interest Earned or Paid | Average Yield or Cost | |||||||||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||||||
| Securities (1) | $ | 599,648 | $ | 18,380 | 3.07 | % | $ | 688,827 | $ | 18,679 | 2.71 | % | ||||||||||||||||||||
| Loans (1) | 1,707,523 | 75,670 | 4.43 | % | 1,540,382 | 70,414 | 4.57 | % | ||||||||||||||||||||||||
| Other | 99,042 | 833 | 0.84 | % | 90,232 | 849 | 0.94 | % | ||||||||||||||||||||||||
| Total earning assets (1) | $ | 2,406,213 | $ | 94,883 | 3.94 | % | $ | 2,319,441 | $ | 89,942 | 3.88 | % | ||||||||||||||||||||
| Deposits | $ | 1,209,736 | $ | 4,496 | 0.37 | % | $ | 1,133,228 | $ | 4,509 | 0.40 | % | ||||||||||||||||||||
| Borrowings | 472,675 | 9,210 | 1.95 | % | 568,883 | 12,385 | 2.18 | % | ||||||||||||||||||||||||
| Total interest-bearing liabilities | $ | 1,682,411 | $ | 13,706 | 0.81 | % | $ | 1,702,111 | $ | 16,894 | 0.99 | % | ||||||||||||||||||||
| Net interest income / spread (1) | $ | 81,177 | 3.13 | % | $ | 73,048 | 2.89 | % | ||||||||||||||||||||||||
| Net interest margin (1) | 3.37 | % | �� | 3.15 | % | |||||||||||||||||||||||||||
| (1) 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 Twelve Months Ended | ||||||||||||||||||
| December 31, 2015 | September 30, 2015 | December 31, 2014 | December 31, 2015 | December 31, 2014 | |||||||||||||||
| ANALYSIS OF NONINTEREST INCOME | (dollars in thousands) | ||||||||||||||||||
| Trust department fees | $ | 1,455 | $ | 1,532 | $ | 1,415 | $ | 6,131 | $ | 5,715 | |||||||||
| Investment advisory and management fees | 721 | 782 | 711 | 2,972 | 2,798 | ||||||||||||||
| Deposit service fees | 1,003 | 994 | 968 | 3,824 | 3,847 | ||||||||||||||
| Gain on sales of residential real estate loans | 57 | 85 | 144 | 323 | 461 | ||||||||||||||
| Gain on sales of government guaranteed portions of loans | 405 | 760 | 1,180 | 1,305 | 2,041 | ||||||||||||||
| Swap fee income | 535 | 63 | 93 | 1,718 | 155 | ||||||||||||||
| Earnings on cash surrender value of life insurance | 443 | 407 | 445 | 1,762 | 1,722 | ||||||||||||||
| Debit card fees | 290 | 290 | 219 | 1,072 | 982 | ||||||||||||||
| Correspondent banking fees | 275 | 311 | 318 | 1,190 | 1,064 | ||||||||||||||
| Participation service fees on commercial loan participations | 218 | 202 | 222 | 865 | 855 | ||||||||||||||
| Securities gains, net | 325 | 57 | 52 | 799 | 92 | ||||||||||||||
| Gain on disposal of leased assets, net | 46 | 89 | (47 | ) | 297 | 61 | |||||||||||||
| Credit card issuing fees | 134 | 134 | 124 | 538 | 553 | ||||||||||||||
| Lawsuit settlement | - | 387 | - | 387 | - | ||||||||||||||
| Gain on debt extinguishment | 300 | - | - | 300 | - | ||||||||||||||
| Other | 271 | 276 | 234 | 1,047 | 812 | ||||||||||||||
| Total noninterest income | $ | 6,478 | $ | 6,369 | $ | 6,078 | $ | 24,530 | $ | 21,158 | |||||||||
| ANALYSIS OF NONINTEREST EXPENSE | |||||||||||||||||||
| Salaries and employee benefits | $ | 10,258 | $ | 10,583 | $ | 10,038 | $ | 42,968 | $ | 40,337 | |||||||||
| Occupancy and equipment expense | 1,535 | 1,864 | 1,846 | 7,043 | 7,386 | ||||||||||||||
| Professional and data processing fees | 840 | 1,742 | 1,673 | 5,523 | 6,192 | ||||||||||||||
| FDIC, other insurance and regulatory fees | 573 | 702 | 773 | 2,725 | 2,895 | ||||||||||||||
| Loan/lease expense | 281 | 253 | 153 | 882 | 666 | ||||||||||||||
| Net cost of operation of other real estate | (4 | ) | (1,118 | ) | 421 | (1,092 | ) | 603 | |||||||||||
| Advertising and marketing | 532 | 460 | 591 | 1,900 | 1,985 | ||||||||||||||
| Postage and communications | 252 | 221 | 235 | 936 | 930 | ||||||||||||||
| Stationery and supplies | 171 | 145 | 144 | 596 | 579 | ||||||||||||||
| Bank service charges | 396 | 392 | 332 | 1,486 | 1,291 | ||||||||||||||
| Losses on debt extinguishment | 591 | - | - | 7,486 | - | ||||||||||||||
| Correspondent banking expense | 186 | 177 | 158 | 703 | 636 | ||||||||||||||
| Other | 528 | 492 | 510 | 2,202 | 1,930 | ||||||||||||||
| Total noninterest expense | $ | 16,139 | $ | 15,913 | $ | 16,874 | $ | 73,358 | $ | 65,430 | |||||||||
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
| For the Quarter Ended | For the Twelve Months Ended | ||||||||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||||||||
| SELECT FINANCIAL DATA - SUBSIDIARIES | 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||
| TOTAL ASSETS | |||||||||||||||||||||||||
| Quad City Bank and Trust (1) | $ | 1,336,572 | $ | 1,328,053 | $ | 1,320,684 | $ | 1,336,572 | $ | 1,320,684 | |||||||||||||||
| m2 Lease Funds, LLC | 202,685 | 195,712 | 178,016 | 202,685 | 178,016 | ||||||||||||||||||||
| Cedar Rapids Bank and Trust | 866,872 | 867,064 | 840,332 | 866,872 | 840,332 | ||||||||||||||||||||
| Rockford Bank and Trust | 367,472 | 360,348 | 353,448 | 367,472 | 353,448 | ||||||||||||||||||||
| TOTAL DEPOSITS | |||||||||||||||||||||||||
| Quad City Bank and Trust (1) | $ | 931,689 | $ | 919,904 | $ | 813,805 | $ | 931,689 | $ | 813,805 | |||||||||||||||
| Cedar Rapids Bank and Trust | 680,674 | 685,537 | 636,718 | 680,674 | 636,718 | ||||||||||||||||||||
| Rockford Bank and Trust | 272,347 | 254,050 | 234,201 | 272,347 | 234,201 | ||||||||||||||||||||
| TOTAL LOANS & LEASES | |||||||||||||||||||||||||
| Quad City Bank and Trust (1) | $ | 887,882 | $ | 853,755 | $ | 783,486 | $ | 887,882 | $ | 783,486 | |||||||||||||||
| m2 Lease Funds, LLC | 201,119 | 194,911 | 177,444 | 201,119 | 177,444 | ||||||||||||||||||||
| Cedar Rapids Bank and Trust | 616,615 | 617,215 | 576,322 | 616,615 | 576,322 | ||||||||||||||||||||
| Rockford Bank and Trust | 293,526 | 284,703 | 271,658 | 293,526 | 271,658 | ||||||||||||||||||||
| TOTAL LOANS & LEASES / TOTAL ASSETS | |||||||||||||||||||||||||
| Quad City Bank and Trust (1) | 66 | % | 64 | % | 59 | % | 66 | % | 59 | % | |||||||||||||||
| Cedar Rapids Bank and Trust | 71 | % | 71 | % | 69 | % | 71 | % | 69 | % | |||||||||||||||
| Rockford Bank and Trust | 80 | % | 79 | % | 77 | % | 80 | % | 77 | % | |||||||||||||||
| ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES | |||||||||||||||||||||||||
| Quad City Bank and Trust (1) | 1.35 | % | 1.34 | % | 1.41 | % | 1.35 | % | 1.41 | % | |||||||||||||||
| m2 Lease Funds, LLC | 1.87 | % | 1.80 | % | 1.94 | % | 1.87 | % | 1.94 | % | |||||||||||||||
| Cedar Rapids Bank and Trust | 1.61 | % | 1.60 | % | 1.37 | % | 1.61 | % | 1.37 | % | |||||||||||||||
| Rockford Bank and Trust | 1.45 | % | 1.49 | % | 1.51 | % | 1.45 | % | 1.51 | % | |||||||||||||||
| ALLOWANCE AS A PERCENTAGE OF NONPERFORMING LOANS/LEASES | |||||||||||||||||||||||||
| Quad City Bank and Trust (1) | 147.27 | % | 130.52 | % | 83.68 | % | 147.27 | % | 83.68 | % | |||||||||||||||
| m2 Lease Funds, LLC | 213.11 | % | 303.73 | % | 257.13 | % | 213.11 | % | 257.13 | % | |||||||||||||||
| Cedar Rapids Bank and Trust | 424.13 | % | 505.44 | % | 197.42 | % | 424.13 | % | 197.42 | % | |||||||||||||||
| Rockford Bank and Trust | 344.41 | % | 264.68 | % | 143.36 | % | 344.41 | % | 143.36 | % | |||||||||||||||
| NET INCOME (4) | |||||||||||||||||||||||||
| Quad City Bank and Trust (1) | $ | 4,080 | $ | 4,086 | $ | 1,972 | $ | 11,763 | $ | 10,451 | |||||||||||||||
| m2 Lease Funds, LLC (2) | 865 | 712 | 328 | 3,062 | 2,333 | ||||||||||||||||||||
| Cedar Rapids Bank and Trust | 3,137 | 3,016 | 2,101 | 8,108 | 8,006 | ||||||||||||||||||||
| Rockford Bank and Trust | 452 | 800 | 323 | 2,189 | 1,877 | ||||||||||||||||||||
| RETURN ON AVERAGE ASSETS | |||||||||||||||||||||||||
| Quad City Bank and Trust (1) | 1.18 | % | 1.23 | % | 0.60 | % | 0.89 | % | 0.82 | % | |||||||||||||||
| Cedar Rapids Bank and Trust | 1.42 | % | 1.36 | % | 0.99 | % | 0.93 | % | 0.97 | % | |||||||||||||||
| Rockford Bank and Trust | 0.50 | % | 0.88 | % | 0.36 | % | 0.61 | % | 0.54 | % | |||||||||||||||
| NET INTEREST MARGIN PERCENTAGE (3) | |||||||||||||||||||||||||
| Quad City Bank and Trust (1) | 3.38 | % | 3.49 | % | 3.07 | % | 3.32 | % | 3.07 | % | |||||||||||||||
| Cedar Rapids Bank and Trust | 3.63 | % | 3.71 | % | 3.58 | % | 3.65 | % | 3.44 | % | |||||||||||||||
| Rockford Bank and Trust | 3.43 | % | 3.41 | % | 3.34 | % | 3.41 | % | 3.31 | % | |||||||||||||||
| (1) Quad City Bank and Trust figures include m2 Lease Funds, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Lease Funds, LLC is also presented separately for certain (applicable) measurements. | |||||||||||||||||||||||||
| (2) m2 Lease Funds, LLC net income is post-tax, using an estimated effective tax rate of 35%. | |||||||||||||||||||||||||
| (3) 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. | |||||||||||||||||||||||||
| (4) Net income for the year ending December 31, 2015 included losses on debt extinguishment (pre-tax) totaling $3.1 million and $3.8 million, respectively, at Quad City Bank and Trust and Cedar Rapids Bank and Trust. Net income for the quarter ending and year ending December 31, 2015 included losses on debt extinguishment (pre-tax) totaling $591 thousand at Rockford Bank and Trust. | |||||||||||||||||||||||||
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
| As of | |||||||||||||||||||||
| December 31, | September 30, | December 31, | |||||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATIONS | 2015 | 2015 | 2014 | ||||||||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||||||||
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1) | |||||||||||||||||||||
| Stockholders' equity (GAAP) | $ | 225,886 | $ | 221,115 | $ | 144,079 | |||||||||||||||
| Less: Intangible assets | 4,694 | 4,744 | 4,894 | ||||||||||||||||||
| Tangible common equity (non-GAAP) | $ | 221,192 | $ | 216,371 | $ | 139,185 | |||||||||||||||
| Total assets (GAAP) | $ | 2,593,198 | $ | 2,575,855 | $ | 2,524,958 | |||||||||||||||
| Less: Intangible assets | 4,694 | 4,744 | 4,894 | ||||||||||||||||||
| Tangible assets (non-GAAP) | $ | 2,588,504 | $ | 2,571,111 | $ | 2,520,064 | |||||||||||||||
| Tangible common equity to tangible assets ratio (non-GAAP) | 8.55 | % | 8.42 | % | 5.52 | % | |||||||||||||||
| For the Quarter ended | For the Twelve Months Ended | ||||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||||
| CORE NET INCOME (2) | 2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||
| Net income (loss) (GAAP) | $ | 6,785 | $ | 6,489 | $ | 2,993 | $ | 16,928 | $ | 14,953 | |||||||||||
| Less nonrecurring items (post-tax) (3): | |||||||||||||||||||||
| Income: | |||||||||||||||||||||
| Securities gains | $ | 211 | $ | 37 | $ | 34 | $ | 519 | $ | 60 | |||||||||||
| Gain on debt extinguishment | 195 | - | - | 195 | - | ||||||||||||||||
| Lawsuit award | - | 252 | - | 252 | - | ||||||||||||||||
| Total nonrecurring income (non-GAAP) | $ | 406 | $ | 289 | $ | 34 | $ | 966 | $ | 60 | |||||||||||
| Expense: | |||||||||||||||||||||
| Losses on debt extinguishment | $ | 384 | $ | - | $ | - | $ | 4,866 | $ | - | |||||||||||
| Accrual adjustments | (487 | ) | - | - | (487 | ) | - | ||||||||||||||
| Other non-recurring expenses | - | - | - | 513 | - | ||||||||||||||||
| Total nonrecurring expense (non-GAAP) | $ | (103 | ) | $ | - | $ | - | $ | 4,892 | $ | - | ||||||||||
| Core net income (non-GAAP) | $ | 6,276 | $ | 6,200 | $ | 2,959 | $ | 20,854 | $ | 14,893 | |||||||||||
| Less: Preferred stock dividends | - | - | - | - | 1,082 | ||||||||||||||||
| Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (2) | $ | 6,276 | $ | 6,200 | $ | 2,959 | $ | 20,854 | $ | 13,811 | |||||||||||
| CORE EARNINGS PER COMMON SHARE (2) | |||||||||||||||||||||
| Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (from above) | $ | 6,276 | $ | 6,200 | $ | 2,959 | $ | 20,854 | $ | 13,811 | |||||||||||
| Weighted average common shares outstanding | 11,744,495 | 11,713,993 | 7,943,275 | 10,345,286 | 7,925,220 | ||||||||||||||||
| Weighted average common and common equivalent shares outstanding | 11,926,038 | 11,875,930 | 8,073,386 | 10,499,841 | 8,048,661 | ||||||||||||||||
| Core earnings per common share (non-GAAP): | |||||||||||||||||||||
| Basic | $ | 0.53 | $ | 0.53 | $ | 0.37 | $ | 2.02 | $ | 1.74 | |||||||||||
| Diluted | $ | 0.53 | $ | 0.52 | $ | 0.37 | $ | 1.99 | $ | 1.72 | |||||||||||
| CORE RETURN ON AVERAGE ASSETS (2) | |||||||||||||||||||||
| Core net income (non-GAAP) (from above) | $ | 6,276 | $ | 6,200 | $ | 2,959 | $ | 20,854 | $ | 14,893 | |||||||||||
| Average Assets | $ | 2,611,276 | $ | 2,563,739 | $ | 2,487,698 | $ | 2,549,921 | $ | 2,453,678 | |||||||||||
| Core return on average assets (annualized) (non-GAAP) | 0.96 | % | 0.97 | % | 0.48 | % | 0.82 | % | 0.61 | % | |||||||||||
| (1) 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. | |||||||||||||||||||||
| (2) Core net income, core net income attributable to QCR Holdings, Inc. common stockholders, core earnings per common share and core return on average assets are non-GAAP financial measures. The Company's management believes that these measure are important to investors as they exclude non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. | |||||||||||||||||||||
| (3) Nonrecurring items (post-tax) are calculated using an estimated effective tax rate of 35%. | |||||||||||||||||||||
Todd A. Gipple
Executive Vice President
Chief Operating Officer
Chief Financial Officer
(309) 743-7745