EXHIBIT 99.1
QCR Holdings, Inc. Announces Third Quarter Earnings and Successful Closing of Des Moines Acquisition
MOLINE, Ill., Oct. 27, 2016 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ:QCRH) today announced net income of $6.1 million and diluted earnings per share (“EPS”) of $0.46 for the quarter ended September 30, 2016. This included $1.5 million of acquisition costs (after-tax) related to the previously announced acquisition of Community State Bank (“CSB”). Excluding these acquisition costs and other non-core items, the Company reported core net income (non-GAAP) of $7.5 million and diluted EPS of $0.57. By comparison, for the quarter ended June 30, 2016, the Company reported net income of $6.7 million and diluted EPS of $0.53. This included $231 thousand of acquisition costs (after-tax) related to CSB. For the third quarter of 2015, the Company reported net income of $6.5 million and diluted EPS of $0.55.
For the nine months ended September 30, 2016, the Company reported net income of $19.2 million and diluted EPS of $1.52. Excluding acquisition costs and other non-core items, the Company reported core net income (non-GAAP) of $20.6 million and diluted EPS of $1.64. By comparison, for the nine months ended September 30, 2015, the Company reported net income of $10.1 million and diluted EPS of $1.01. This included several nonrecurring items, including $4.5 million of losses on debt extinguishments (after-tax) related to the balance sheet restructuring that took place in the second quarter of 2015.
“Our core operating performance for the first nine months of 2016 has been solid,” commented Douglas M. Hultquist, President and Chief Executive Officer, “and we continue to strategize and explore ways to improve our profitability through our ongoing key initiatives. Our core return on average assets (non-GAAP) has improved from 0.77% to 1.02%, when comparing the first nine months of 2015 to the same period of the current year. This is the result of solid loan growth, reductions in wholesale borrowings, continued margin improvements, and strong fee income.”
Organic Loan and Lease Growth Strong at 10.6% Annualized Year-To-Date
Swap Fee Income and Gains on the Sale of Government Guaranteed Loans Total $4.1 Million Year-To-Date
During the third quarter of 2016, the Company’s total assets increased $597.6 million, or 22%, to a total of $3.28 billion, while total loans and leases grew $437.8 million. Of the $437.8 million of loan growth, $419.5 million related to the acquisition of CSB, while the remaining $18.3 million was organic growth. The organic loan and lease growth was funded primarily by deposits, which increased $140.1 million in the third quarter, excluding the acquisition of CSB. This deposit growth also allowed the Company to further reduce borrowings.
“Loan and lease growth, excluding the effects of the acquisition, totaled $143.1 million, or an annualized rate of 10.6%, for the first nine months of the year,” commented Todd A. Gipple, Executive Vice President, Chief Operating Officer and Chief Financial Officer. “Strong loan and lease growth has helped us meet our targeted annual organic growth rate of 10-12% and continues to keep our loan and leases to asset ratio within our targeted range of 70-75%.”
“Swap fee income and gains on the sale of government guaranteed loans were strong for the first nine months of 2016, totaling $4.1 million,” said Mr. Gipple. “We plan to continue executing these types of transactions, as they provide unique and beneficial solutions for our clients. We also look forward to offering these products in our newest market, Des Moines/Ankeny.”
Net Interest Margin Expanded 9 Basis Points in Third Quarter
Net interest income totaled $23.6 million for the quarter ended September 30, 2016. By comparison, net interest income totaled $21.0 million and $20.1 million for the quarters ended June 30, 2016 and September 30, 2015, respectively. Net interest income totaled $65.2 million for the nine months ended September 30, 2016, an increase of 15.6% from the same period of the prior year. Net interest income attributable to CSB totaled $2.3 million for the partial quarter.
“Net interest margin increased nine basis points from the prior quarter to 3.71%,” stated Mr. Gipple. He added, “The improvement in margin this quarter was attributable to the addition of Community State Bank. CSB’s strong margin and solid earnings will contribute significantly to our efforts to achieve upper-quartile ROAA performance and continue to drive shareholder value. For the month of September 2016, CSB had $546.0 million in average earning assets with a net interest margin of 4.99%. CSB’s net interest margin prior to acquisition typically ranged from 3.80% to 4.00%. This has increased due to purchase accounting adjustments, primarily the accretion of the loan discount, including the acceleration of discounts related to the payoff of purchased credit impaired loans.”
Nonperforming Assets to Total Assets Ratio Flat During the Third Quarter
Nonperforming assets (“NPAs”) increased $3.8 million in the current quarter, which was due to the acquisition of CSB. The ratio of NPAs to total assets was 0.69% at September 30, 2016, which was down from 0.70% at June 30, 2016 and down from 0.80% a year ago.
“Asset quality at our newest charter, CSB, is strong and very much in line with the rest of our subsidiaries, resulting in a slight reduction of our NPAs to total assets ratio this quarter. We remain committed to further improving asset quality,” stated Mr. Hultquist.
The Company’s provision for loan and lease losses totaled $1.6 million for the third quarter of 2016, which was up $410 thousand from the prior quarter, and flat as compared to the third quarter of 2015. The increase in provision in the third quarter of 2016 is primarily attributable to the addition of CSB. As of September 30, 2016, the Company’s allowance to total loans and leases was 1.22%, which was down from 1.46% at June 30, 2016 and down from 1.45% at September 30, 2015.
In accordance with generally accepted accounting principles for acquisition accounting, the loans acquired through the acquisition of CSB were recorded at market value; therefore, there was no allowance associated with CSB’s loans at acquisition. Management continues to evaluate the allowance needed on the acquired CSB loans factoring in the net remaining discount ($12.7 million at September 30, 2016). When factoring this remaining discount into the Company’s allowance to total loans and leases calculation, the Company’s allowance as a percentage of total loans and leases increases from 1.22% to 1.76%.
Capital Levels Remain Strong
The Company’s total risk-based capital ratio was 11.45%, the common equity tier 1 ratio was 9.32% and the tangible common equity to tangible assets ratio decreased to 7.92%, all as of September 30, 2016. For comparison, these respective ratios were 14.29%, 11.72% and 10.10% as of June 30, 2016. The decrease in the Company’s capital ratios was primarily due to the acquisition of CSB.
Acquisition of Community State Bank, Headquartered in Des Moines/Ankeny, Iowa
“We are excited about adding such a talented team to the Company and are encouraged by the opportunity for strong growth in Ankeny and the entire Des Moines MSA,” stated Mr. Gipple.
As of September 30, 2016, CSB had total assets of $580.2 million, consisting primarily of loans totaling $419.5 million and a securities portfolio of $90.2 million. These assets were funded by $481.3 million of deposits and $15.3 million of borrowings. CSB reported net income for the partial quarter of $189 thousand, which included $473 thousand of after tax acquisition costs.
Preliminary purchase accounting adjustments were recorded in the third quarter and the resulting accounting marks and the net dilution to tangible book value per share were more favorable than projected when the Company announced the CSB transaction in May of 2016.
Actual dilution to tangible book value per share from the transaction, including the common stock issuance of $30.1 million in May of 2016, was only $1.03 per share, or 4.91%. This compares favorably to the $1.25 per share and 6.11% dilution that was projected.
“The terms of the transaction required CSB to retain its earnings through the closing date. Due to better than projected CSB earnings and more favorable valuation marks, our earn-back on the tangible book value dilution from the transaction should be even more rapid than the three year earn-back we cited in our transaction announcement this past May,” stated Mr. Gipple.
Significant One-Time Gain Used to Further Restructure Balance Sheet
And Strengthen Net Interest Margin
This quarter, the Company had the opportunity to sell an investment and recognize a gain of approximately $4.0 million. This gain was utilized to further reduce wholesale borrowings by $60 million at a blended rate of 3.24% and further de-lever the balance sheet with the sale of $28 million in securities yielding 1.48%. The remaining funding was replaced by a mix of core deposits and overnight borrowings. These transactions were recorded near the end of the quarter. The positive impact on future earnings will be an increase in net interest income of approximately $1.3 million annually, increasing NIM by approximately 10 basis points.
Filing of Form S-3 Shelf Registration Statement
The Company today filed a universal shelf registration statement on Form S-3 with the Securities and Exchange Commission ("SEC"). When declared effective by the SEC, the registration statement will allow QCR Holdings, Inc. to offer and sell various types of securities, including common stock, preferred stock, debt securities and/or warrants, from time to time up to an aggregate amount of $100 million. The Company utilized $30.1 million of its previous shelf registration filing through the offer and sale of its common stock in the second quarter of 2016 to help fund the acquisition of CSB. This Form S-3 filing will replenish the amount available to the previous $100 million. The specific terms and prices of any securities offered pursuant to the registration statement 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.
About Us
QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company, which serves the Quad City, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, 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, Community State Bank, which is based in Ankeny, Iowa and was acquired by the Company in 2016, 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. Additionally, the Company 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, national and international economies; (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) unexpected results of acquisitions (including the acquisition of CSB), which may include failure to realize the anticipated benefits of the acquisition and the possibility that the transaction costs may be greater than anticipated; (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, | | March 31, | | December 31, | | September 30,
| |
| | 2016 | | 2016 | | 2016 | | 2015 | | 2015 | |
| | | | | | | | | |
| | (dollars in thousands) |
| CONDENSED BALANCE SHEET | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 61,213 | | $ | 49,581 | | $ | 44,931 | | $ | 41,742 | | $ | 40,975 | |
| Federal funds sold and interest-bearing deposits | | | 96,047 | | | 68,432 | | | 57,229 | | | 56,164 | | | 66,684 | |
| Securities | | | 564,930 | | | 510,959 | | | 537,317 | | | 577,109 | | | 590,775 | |
| Net loans/leases | | | 2,331,774 | | | 1,894,676 | | | 1,846,428 | | | 1,771,882 | | | 1,730,138 | |
| Core deposit intangible | | | 7,614 | | | 1,372 | | | 1,422 | | | 1,471 | | | 1,521 | |
| Goodwill | | | 13,632 | | | 3,223 | | | 3,223 | | | 3,223 | | | 3,223 | |
| Other intangible assets | | | 1,509 | | | - | | | - | | | - | | | - | |
| Other assets | | | 204,267 | | | 155,191 | | | 150,123 | | | 141,607 | | | 142,539 | |
| Total assets | | $ | 3,280,986 | | $ | 2,683,434 | | $ | 2,640,673 | | $ | 2,593,198 | | $ | 2,575,855 | |
| | | | | | |
| Total deposits | | $ | 2,594,913 | | $ | 1,973,594 | | $ | 1,989,573 | | $ | 1,880,666 | | $ | 1,855,319 | |
| Total borrowings | | | 312,104 | | | 381,874 | | | 347,901 | | | 444,162 | | | 456,091 | |
| Other liabilities | | | 93,112 | | | 52,849 | | | 68,056 | | | 42,484 | | | 43,330 | |
| Total stockholders' equity | | | 280,857 | | | 275,117 | | | 235,143 | | | 225,886 | | | 221,115 | |
| Total liabilities and stockholders' equity | | $ | 3,280,986 | | $ | 2,683,434 | | $ | 2,640,673 | | $ | 2,593,198 | | $ | 2,575,855 | |
| | | | | | | | | | | | | | | | | |
| ANALYSIS OF LOAN PORTFOLIO | | | | | | | | | | | | | | | | |
| Loan/lease mix: | | | | | | | | | | | | | | | | |
| Commercial and industrial loans | | $ | 804,308 | | $ | 706,261 | | $ | 682,057 | | $ | 648,160 | | $ | 647,398 | |
| Commercial real estate loans | | | 1,070,305 | | | 784,379 | | | 766,159 | | | 724,369 | | | 692,569 | |
| Direct financing leases | | | 166,924 | | | 169,928 | | | 172,774 | | | 173,656 | | | 173,304 | |
| Residential real estate loans | | | 229,081 | | | 180,482 | | | 173,096 | | | 170,433 | | | 165,061 | |
| Installment and other consumer loans | | | 81,918 | | | 73,658 | | | 71,842 | | | 73,669 | | | 69,863 | |
| Deferred loan/lease origination costs, net of fees | | | 8,065 | | | 8,065 | | | 7,895 | | | 7,736 | | | 7,477 | |
| Total loans/leases | | $ | 2,360,601 | | $ | 1,922,773 | | $ | 1,873,823 | | $ | 1,798,023 | | $ | 1,755,672 | |
| Less allowance for estimated losses on loans/leases | | | 28,827 | | | 28,097 | | | 27,395 | | | 26,141 | | | 25,534 | |
| Net loans/leases | | $ | 2,331,774 | | $ | 1,894,676 | | $ | 1,846,428 | | $ | 1,771,882 | | $ | 1,730,138 | |
| | | | | | |
| ANALYSIS OF SECURITIES PORTFOLIO | | | | | |
| Securities mix: | | | | | |
| U.S. government sponsored agency securities | | $ | 67,885 | | $ | 88,321 | | $ | 132,742 | | $ | 213,537 | | $ | 247,625 | |
| Municipal securities | | | 360,330 | | | 302,689 | | | 285,009 | | | 280,203 | | | 265,293 | |
| Residential mortgage-backed and related securities | | | 133,173 | | | 116,765 | | | 116,452 | | | 80,670 | | | 74,901 | |
| Other securities | | | 3,542 | | | 3,184 | | | 3,114 | | | 2,699 | | | 2,956 | |
| Total securities | | $ | 564,930 | | $ | 510,959 | | $ | 537,317 | | $ | 577,109 | | $ | 590,775 | |
| | | | | | |
| ANALYSIS OF DEPOSITS | | | | | |
| Deposit mix: | | | | | |
| Noninterest-bearing demand deposits | | $ | 764,615 | | $ | 615,764 | | $ | 641,859 | | $ | 615,292 | | $ | 585,300 | |
| Interest-bearing demand deposits | | | 1,298,781 | | | 918,036 | | | 916,455 | | | 886,294 | | | 877,642 | |
| Time deposits | | | 420,470 | | | 337,584 | | | 331,786 | | | 309,974 | | | 302,978 | |
| Brokered deposits | | | 111,047 | | | 102,210 | | | 99,473 | | | 69,106 | | | 89,399 | |
| Total deposits | | $ | 2,594,913 | | $ | 1,973,594 | | $ | 1,989,573 | | $ | 1,880,666 | | $ | 1,855,319 | |
| | | | | | |
| ANALYSIS OF BORROWINGS | | | | | |
| Borrowings mix: | | | | | |
| Term FHLB advances | | $ | 83,343 | | $ | 78,000 | | $ | 80,000 | | $ | 97,000 | | $ | 102,000 | |
| Overnight FHLB advances (1) | | | 55,300 | | | 118,900 | | | 70,500 | | | 54,000 | | | 31,000 | |
| Wholesale structured repurchase agreements | | | 45,000 | | | 100,000 | | | 100,000 | | | 110,000 | | | 115,000 | |
| Customer repurchase agreements | | | 8,265 | | | 21,441 | | | 52,153 | | | 73,873 | | | 74,404 | |
| Federal funds purchased | | | 51,750 | | | 30,120 | | | 11,870 | | | 70,790 | | | 93,160 | |
| Junior subordinated debentures | | | 33,446 | | | 33,413 | | | 33,378 | | | 38,499 | | | 40,527 | |
| Other borrowings | | | 35,000 | | | - | | | - | | | - | | | - | |
| Total borrowings | | $ | 312,104 | | $ | 381,874 | | $ | 347,901 | | $ | 444,162 | | $ | 456,091 | |
| | | | | | |
(1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 0.44%
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| | | | | | |
QCR HOLDINGS, INC.
|
| CONSOLIDATED FINANCIAL HIGHLIGHTS |
| (Unaudited) |
| | | | | | |
| | | | For the Nine Months Ended |
| | | | September 30, | | September 30, |
| | | | 2016 | | 2015 |
| | | | | | |
| | | | (dollars in thousands, except per share data)
|
| | | | | | |
| INCOME STATEMENT | | | | | |
| Interest income | | | $ | 74,232 | | | $ | 67,093 | |
| Interest expense | | | | 8,995 | | | | 10,683 | |
| Net interest income | | | | 65,237 | | | | 56,410 | |
| Provision for loan/lease losses | | | | 4,879 | | | | 5,694 | |
| Net interest income after provision for loan/lease losses | | | $ | 60,358 | | | $ | 50,716 | |
| | | | | | |
| Trust department fees | | | $ | 4,607 | | | $ | 4,676 | |
| Investment advisory and management fees | | | | 2,117 | | | | 2,251 | |
| Deposit service fees | | | | 3,029 | | | | 2,790 | |
| Gain on sales of residential real estate loans | | | | 289 | | | | 266 | |
| Gain on sales of government guaranteed portions of loans | | | | 2,701 | | | | 900 | |
| Swap fee income | | | | 1,358 | | | | 1,183 | |
| Securities gains, net | | | | 4,628 | | | | 473 | |
| Earnings on bank-owned life insurance | | | | 1,324 | | | | 1,319 | |
| Debit card fees | | | | 1,127 | | | | 912 | |
| Correspondent banking fees | | | | 801 | | | | 916 | |
| Participation service fees on commercial loan participations | | | | 694 | | | | 648 | |
| Fee income from early termination of leases | | | | 173 | | | | 251 | |
| Credit card issuing fees | | | | 413 | | | | 404 | |
| Other | | | | 747 | | | | 1,162 | |
| Total noninterest income | | | $ | 24,008 | | | $ | 18,151 | |
| | | | | | |
| Salaries and employee benefits | | | $ | 32,921 | | | $ | 32,710 | |
| Occupancy and equipment expense | | | | 5,798 | | | | 5,508 | |
| Professional and data processing fees | | | | 4,921 | | | | 4,683 | |
| Acquisition costs | | | | 2,401 | | | | - | |
| FDIC insurance, other insurance and regulatory fees | | | | 1,867 | | | | 2,152 | |
| Loan/lease expense | | | | 420 | | | | 602 | |
| Net cost of operation of other real estate | | | | 513 | | | | (1,090 | ) |
| Advertising and marketing | | | | 1,367 | | | | 1,368 | |
| Postage and communications | | | | 711 | | | | 684 | |
| Stationery and supplies | | | | 491 | | | | 424 | |
| Bank service charges | | | | 1,247 | | | | 1,089 | |
| Losses on debt extinguishment, net | | | | 4,220 | | | | 6,894 | |
| Correspondent banking expense | | | | 565 | | | | 518 | |
| Other | | | | 1,737 | | | | 1,776 | |
| Total noninterest expense | | | $ | 59,179 | | | $ | 57,318 | |
| | | | | | |
| Net income before taxes | | | $ | 25,187 | | | $ | 11,549 | |
| Income tax expense | | | | 6,030 | | | | 1,406 | |
| Net income | | | $ | 19,157 | | | $ | 10,143 | |
| | | | | | |
| Basic EPS | | | $ | 1.55 | | | $ | 1.03 | |
| Diluted EPS | | | $ | 1.52 | | | $ | 1.01 | |
| | | | | | |
| Weighted average common shares outstanding | | | | 12,398,491 | | | | 9,878,882 | |
| Weighted average common and common equivalent shares outstanding | | | | 12,580,042 | | | | 10,024,441 | |
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QCR HOLDINGS, INC.
|
| CONSOLIDATED FINANCIAL HIGHLIGHTS |
| (Unaudited) |
| | | | | | | | |
| | | | For the Quarter Ended |
| | | | September 30, | June 30, | March 31, | December 31, | September 30, |
| | | | 2016 | 2016 | 2016 | 2015 | 2015 |
| | | | | | | | |
| | | | (dollars in thousands, except per share data) |
| | | | | | | | |
| INCOME STATEMENT | | | | | | |
| Interest income | | $ | 26,817 | | $ | 23,913 | | $ | 23,502 | | $ | 22,910 | | $ | 23,141 | |
| Interest expense | | | 3,186 | | | 2,904 | | | 2,905 | | | 3,024 | | | 3,004 | |
| Net interest income | | | 23,631 | | | 21,009 | | | 20,597 | | | 19,886 | | | 20,137 | |
| Provision for loan/lease losses | | | 1,608 | | | 1,198 | | | 2,073 | | | 1,177 | | | 1,635 | |
| Net interest income after provision for loan/lease losses | | $ | 22,023 | | $ | 19,811 | | $ | 18,524 | | $ | 18,709 | | $ | 18,502 | |
| | | | | | | | |
| | | | | | | | |
| Trust department fees | | $ | 1,519 | | $ | 1,512 | | $ | 1,576 | | $ | 1,455 | | $ | 1,532 | |
| Investment advisory and management fees | | | 766 | | | 693 | | | 658 | | | 721 | | | 782 | |
| Deposit service fees | | | 1,151 | | | 947 | | | 931 | | | 1,003 | | | 985 | |
| Gain on sales of residential real estate loans | | | 144 | | | 84 | | | 60 | | | 57 | | | 85 | |
| Gain on sales of government guaranteed portions of loans | | | 219 | | | 1,604 | | | 879 | | | 405 | | | 760 | |
| Swap fee income | | | 334 | | | 168 | | | 857 | | | 535 | | | 63 | |
| Securities gains, net | | | 4,252 | | | 18 | | | 358 | | | 325 | | | 57 | |
| Earnings on bank-owned life insurance | | | 450 | | | 480 | | | 394 | | | 443 | | | 407 | |
| Debit card fees | | | 475 | | | 344 | | | 308 | | | 290 | | | 333 | |
| Correspondent banking fees | | | 254 | | | 245 | | | 302 | | | 275 | | | 311 | |
| Participation service fees on commercial loan participations | | | 237 | | | 246 | | | 211 | | | 218 | | | 202 | |
| Fee income from early termination of leases | | | 95 | | | 66 | | | 12 | | | 46 | | | 89 | |
| Credit card issuing fees | | | 137 | | | 139 | | | 137 | | | 134 | | | 134 | |
| Lawsuit settlement | | | - | | | - | | | - | | | - | | | 387 | |
| Other | | | | 390 | | | 216 | | | 139 | | | 271 | | | 276 | |
| Total noninterest income | | $ | 10,423 | | $ | 6,762 | | $ | 6,822 | | $ | 6,178 | | $ | 6,403 | |
| | | | | | | | |
| | | | | | | | |
| Salaries and employee benefits | | $ | 11,202 | | $ | 10,917 | | $ | 10,801 | | $ | 10,258 | | $ | 10,583 | |
| Occupancy and equipment expense | | | 2,086 | | | 1,885 | | | 1,827 | | | 1,535 | | | 1,864 | |
| Professional and data processing fees | | | 1,931 | | | 1,542 | | | 1,447 | | | 840 | | | 1,742 | |
| Acquisition costs | | | 2,046 | | | 355 | | | - | | | - | | | - | |
| FDIC insurance, other insurance and regulatory fees | | | 583 | | | 650 | | | 634 | | | 573 | | | 702 | |
| Loan/lease expense | | | 103 | | | 154 | | | 163 | | | 281 | | | 91 | |
| Net cost of operation of other real estate | | | 133 | | | 278 | | | 102 | | | (4 | ) | | (1,118 | ) |
| Advertising and marketing | | | 548 | | | 433 | | | 386 | | | 532 | | | 460 | |
| Postage and communications | | | 238 | | | 257 | | | 217 | | | 252 | | | 221 | |
| Stationery and supplies | | | 168 | | | 158 | | | 165 | | | 171 | | | 145 | |
| Bank service charges | | | 415 | | | 415 | | | 416 | | | 396 | | | 392 | |
| Losses on debt extinguishment, net | | | 4,137 | | | - | | | 83 | | | 291 | | | - | |
| Correspondent banking expense | | | 206 | | | 182 | | | 177 | | | 186 | | | 177 | |
| Other | | | | 684 | | | 518 | | | 536 | | | 528 | | | 688 | |
| Total noninterest expense | | $ | 24,480 | | $ | 17,744 | | $ | 16,954 | | $ | 15,839 | | $ | 15,947 | |
| | | | | | | | |
| Net income before taxes | | $ | 7,966 | | $ | 8,829 | | $ | 8,392 | | $ | 9,048 | | $ | 8,958 | |
| Income tax expense | | | 1,858 | | | 2,153 | | | 2,019 | | | 2,263 | | | 2,469 | |
| Net income | | | $ | 6,108 | | $ | 6,676 | | $ | 6,373 | | $ | 6,785 | | $ | 6,489 | |
| | | | | | | | |
| Basic EPS | | $ | 0.47 | | $ | 0.54 | | $ | 0.54 | | $ | 0.58 | | $ | 0.55 | |
| Diluted EPS | | $ | 0.46 | | $ | 0.53 | | $ | 0.53 | | $ | 0.57 | | $ | 0.55 | |
| | | | | | | | |
| Weighted average common shares outstanding | | | 13,066,777 | | | 12,335,077 | | | 11,793,620 | | | 11,744,495 | | | 11,713,993 | |
| Weighted average common and common equivalent shares outstanding | | 13,269,703 | | | 12,516,474 | | | 11,953,949 | | | 11,926,038 | | | 11,875,930 | |
| | | | | | | | |
QCR HOLDINGS, INC.
|
| CONSOLIDATED FINANCIAL HIGHLIGHTS |
(Unaudited)
|
| | | | | | | | | |
| | For the Quarter Ended | | For the Nine Months Ended |
| | September 30, | June 30, | March 31, | December 31, | September 30, | | September 30, | September 30, |
| | 2016 | 2016 | 2016 | 2015 | 2015 | | 2016 | 2015 |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | (dollars in thousands, except per share data) |
| |
| COMMON SHARE DATA | | | | | | | | |
| Common shares outstanding | | 13,075,307 | | | 13,057,368 | | | 11,814,911 | | | 11,761,083 | | | 11,728,911 | | | | |
| Book value per common share (1) | $ | 21.48 | | $ | 21.07 | | $ | 19.90 | | $ | 19.21 | | $ | 18.85 | | | | |
| Tangible book value per common share (2) | $ | 19.74 | | $ | 20.72 | | $ | 19.51 | | $ | 18.81 | | $ | 18.45 | | | | |
| Closing stock price | $ | 31.74 | | $ | 27.19 | | $ | 23.79 | | $ | 24.29 | | $ | 21.87 | | | | |
| Market capitalization | $ | 415,010 | | $ | 355,030 | | $ | 281,077 | | $ | 285,677 | | $ | 256,511 | | | | |
| Market price / book value | | 147.77 | % | | 129.05 | % | | 119.53 | % | | 126.47 | % | | 116.01 | % | | | |
| Market price / tangible book value | | 160.79 | % | | 131.24 | % | | 121.94 | % | | 129.15 | % | | 118.55 | % | | | |
| Earnings per common share (basic) LTM (3) | $ | 2.13 | | $ | 2.21 | | $ | 1.62 | | $ | 1.64 | | $ | 1.40 | | | | |
| Price earnings ratio LTM (3) | 14.90 x | 12.30 x | 14.69 x | 14.81 x | 15.62 x | | | |
| TCE / TA (4) | | 7.92 | % | | 10.10 | % | | 8.74 | % | | 8.55 | % | | 8.42 | % | | | |
| | | | | | | | | |
| | | | | | | | | |
| CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | | | | |
| Beginning balance | $ | 275,117 | | $ | 235,143 | | $ | 225,886 | | $ | 221,115 | | $ | 211,697 | | | | |
| Net income | | 6,108 | | | 6,676 | | | 6,373 | | | 6,785 | | | 6,489 | | | | |
| Other comprehensive income (loss), net of tax | | (361 | ) | | 1,181 | | | 2,525 | | | (2,287 | ) | | 2,256 | | | | |
| Common cash dividends declared | | (521 | ) | | (521 | ) | | (471 | ) | | (469 | ) | | - | | | | |
| Proceeds from issuance of 1,215,000 shares of common stock, net of costs | | - | | | 29,829 | | | - | | | - | | | - | | | | |
| Other (5) | | 514 | | | 2,809 | | | 830 | | | 742 | | | 673 | | | | |
| Ending balance | $ | 280,857 | | $ | 275,117 | | $ | 235,143 | | $ | 225,886 | | $ | 221,115 | | | | |
| | | | | | | | | |
| | | | | | | | | |
| REGULATORY CAPITAL RATIOS (6): | | | | | | | | |
| Total risk-based capital ratio | | 11.45 | % | | 14.29 | % | | 12.68 | % | | 13.11 | % | | 13.06 | % | | | |
| Tier 1 risk-based capital ratio | | 10.40 | % | | 13.04 | % | | 11.45 | % | | 11.88 | % | | 11.83 | % | | | |
| Tier 1 leverage capital ratio | | 10.09 | % | | 11.18 | % | | 9.85 | % | | 9.75 | % | | 9.73 | % | | | |
| Common equity tier 1 ratio | | 9.32 | % | | 11.72 | % | | 10.11 | % | | 10.33 | % | | 10.16 | % | | | |
| | | | | | | | | |
| | | | | | | | | |
| KEY PERFORMANCE RATIOS AND OTHER METRICS | | | | | | | | |
| Return on average assets (annualized) | | 0.85 | % | | 1.01 | % | | 0.98 | % | | 1.04 | % | | 1.01 | % | | | 0.94 | % | | | 0.53 | % |
| Return on average total equity (annualized) | | 8.78 | % | | 10.46 | % | | 11.02 | % | | 12.14 | % | | 11.99 | % | | | 10.02 | % | | | 7.43 | % |
| Net interest margin (TEY) (7) | | 3.71 | % | | 3.62 | % | | 3.59 | % | | 3.41 | % | | 3.51 | % | | | 3.65 | % | | | 3.37 | % |
| Efficiency ratio | | 71.89 | % | | 63.89 | % | | 61.83 | % | | 61.22 | % | | 61.88 | % | | | 66.31 | % | | | 77.32 | % |
| Gross loans and leases / total assets | | 71.95 | % | | 71.65 | % | | 70.96 | % | | 69.34 | % | | 68.16 | % | | | 71.95 | % | | | 68.16 | % |
| Full-time equivalent employees (8) | | 572 | | | 410 | | | 406 | | | 406 | | | 406 | | | | 572 | | | | 406 | |
| | | | | | | | | |
| | | | | | | | | |
| AVERAGE BALANCES | | | | | | | | |
| Assets | $ | 2,865,947 | | $ | 2,640,678 | | $ | 2,602,350 | | $ | 2,611,276 | | $ | 2,563,739 | | | $ | 2,702,992 | | | $ | 2,529,469 | |
| Loans/leases | | 2,077,376 | | | 1,899,932 | | | 1,833,950 | | | 1,764,275 | | | 1,744,043 | | | | 1,937,086 | | | | 1,688,605 | |
| Deposits | | 2,243,397 | | | 2,033,116 | | | 1,980,056 | | | 1,978,737 | | | 1,881,604 | | | | 2,085,524 | | | | 1,809,199 | |
| Total stockholders' equity | | 278,369 | | | 255,391 | | | 231,247 | | | 223,553 | | | 216,453 | | | | 255,002 | | | | 182,134 | |
| | | | | | | | | |
| (1) Includes accumulated other comprehensive income (loss). |
| (2) Includes accumulated other comprehensive income (loss) and excludes intangible assets. |
| (3) LTM : Last twelve months. |
| (4) TCE / TCA : tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations. |
| (5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation. |
| (6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release. |
| (7) TEY : Tax equivalent yield. | |
| (8) Full-time equivalent employees increased by 162 in the current quarter due to the acquisition of Community State Bank. |
| |
QCR HOLDINGS, INC.
|
| CONSOLIDATED FINANCIAL HIGHLIGHTS |
| (Unaudited) |
| | | | | | | | | | | | | |
ANALYSIS OF NET INTEREST INCOME AND MARGIN
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | For the Quarter Ended |
| | | September 30, 2016 | | June 30, 2016 | | September 30, 2015 |
| | | 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) |
| | | | | | | | | | | | | |
| Fed funds sold | | $ | 17,685 | | $ | 13 | | | 0.29 | % | | $ | 14,174 | | $ | 11 | | | 0.31 | % | | $ | 22,435 | | $ | 8 | | | 0.14 | % |
| Interest-bearing deposits at financial institutions | | | 67,807 | | | 103 | | | 0.60 | % | | | 50,747 | | | 62 | | | 0.49 | % | | | 51,380 | | | 67 | | | 0.52 | % |
| Securities (1) | | | 525,417 | | | 4,826 | | | 3.65 | % | | | 505,697 | | | 4,573 | | | 3.64 | % | | | 591,538 | | | 4,683 | | | 3.14 | % |
| Restricted investment securities | | | 14,877 | | | 132 | | | 3.53 | % | | | 14,171 | | | 134 | | | 3.80 | % | | | 14,224 | | | 127 | | | 3.54 | % |
| Loans (1) | | | 2,077,376 | | | 23,330 | | | 4.47 | % | | | 1,899,932 | | | 20,497 | | | 4.34 | % | | | 1,744,043 | | | 19,564 | | | 4.45 | % |
| Total earning assets (1) | | $ | 2,703,162 | | $ | 28,404 | | | 4.18 | % | | $ | 2,484,721 | | $ | 25,277 | | | 4.09 | % | | $ | 2,423,620 | | $ | 24,449 | | | 4.00 | % |
| | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | 1,116,325 | | $ | 717 | | | 0.26 | % | | $ | 941,856 | | $ | 600 | | | 0.26 | % | | $ | 822,178 | | $ | 465 | | | 0.22 | % |
| Time deposits | | | 422,603 | | | 755 | | | 0.71 | % | | | 425,216 | | | 744 | | | 0.70 | % | | | 414,396 | | | 675 | | | 0.65 | % |
| Short-term borrowings | | | 30,208 | | | 12 | | | 0.16 | % | | | 50,122 | | | 18 | | | 0.14 | % | | | 147,880 | | | 64 | | | 0.17 | % |
| Federal Home Loan Bank advances | | | 118,564 | | | 421 | | | 1.41 | % | | | 128,956 | | | 416 | | | 1.30 | % | | | 131,343 | | | 537 | | | 1.62 | % |
| Junior subordinated debentures | | | 33,430 | | | 306 | | | 3.64 | % | | | 33,396 | | | 302 | | | 3.64 | % | | | 40,510 | | | 317 | | | 3.10 | % |
| Other borrowings | | | 116,856 | | | 975 | | | 3.32 | % | | | 100,008 | | | 824 | | | 3.31 | % | | | 115,017 | | | 945 | | | 3.26 | % |
| Total interest-bearing liabilities | | $ | 1,837,986 | | $ | 3,186 | | | 0.69 | % | | $ | 1,679,554 | | $ | 2,904 | | | 0.70 | % | | $ | 1,671,324 | | $ | 3,003 | | | 0.71 | % |
| | | | | | | | | | | | | |
| Net interest income / spread (1) | | | $ | 25,218 | | | 3.49 | % | | | $ | 22,373 | | | 3.39 | % | | | $ | 21,446 | | | 3.29 | % |
| Net interest margin (1) | | | | | 3.71 | % | | | | | 3.62 | % | | | | | 3.51 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | For the Nine Months Ended | | | | |
| | | September 30, 2016 | | September 30, 2015 | | |
| | | Average
Balance | Interest
Earned or Paid | Average Yield
or Cost | | Average
Balance | Interest
Earned or Paid | Average
Yield or Cost | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (dollars in thousands) | | | | |
| | | | | | | | | | | | | |
| Fed funds sold | | $ | 16,364 | | $ | 36 | | | 0.29 | % | | $ | 18,549 | | $ | 18 | | | 0.13 | % | | | | |
| Interest-bearing deposits at financial institutions | | | 53,063 | | | 226 | | | 0.57 | % | | | 55,528 | | | 208 | | | 0.50 | % | | | | |
| Securities (1) | | | 527,162 | | | 14,084 | | | 3.57 | % | | | 608,687 | | | 13,725 | | | 3.01 | % | | | | |
| Restricted investment securities | | | 14,396 | | | 396 | | | 3.67 | % | | | 15,083 | | | 378 | | | 3.35 | % | | | | |
| Loans (1) | | | 1,937,085 | | | 63,784 | | | 4.40 | % | | | 1,688,605 | | | 56,452 | | | 4.47 | % | | | | |
| Total earning assets (1) | | $ | 2,548,070 | | $ | 78,526 | | | 4.12 | % | | $ | 2,386,452 | | $ | 70,781 | | | 3.97 | % | | | | |
| | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | 994,476 | | $ | 1,931 | | | 0.26 | % | | $ | 797,892 | | $ | 1,357 | | | 0.23 | % | | | | |
| Time deposits | | | 415,808 | | | 2,175 | | | 0.70 | % | | | 391,218 | | | 1,939 | | | 0.66 | % | | | | |
| Short-term borrowings | | | 55,623 | | | 74 | | | 0.18 | % | | | 163,091 | | | 181 | | | 0.15 | % | | | | |
| Federal Home Loan Bank advances | | | 125,319 | | | 1,278 | | | 1.36 | % | | | 170,520 | | | 2,983 | | | 2.34 | % | | | | |
| Junior subordinated debentures | | | 33,825 | | | 913 | | | 3.61 | % | | | 40,475 | | | 937 | | | 3.10 | % | | | | |
| Other borrowings | | | 106,201 | | | 2,624 | | | 3.30 | % | | | 131,278 | | | 3,286 | | | 3.35 | % | | | | |
| Total interest-bearing liabilities | | $ | 1,731,252 | | $ | 8,995 | | | 0.69 | % | | $ | 1,694,474 | | $ | 10,683 | | | 0.84 | % | | | | |
| | | | | | | | | | | | | |
| Net interest income / spread (1) | | | $ | 69,531 | | | 3.43 | % | | | $ | 60,098 | | | 3.13 | % | | | | |
| Net interest margin (1) | | | | | 3.65 | % | | | | | 3.37 | % | | | | |
| | | | | | | | | | | | | |
| (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) |
| |
| | As of |
| | September 30, | June 30, | March 31, | December 31, | | September 30, |
| | 2016
| 2016
| 2016
| 2015
| | 2015
|
| | | | | | | | | | | | | | | | | | |
| | (dollars in thousands, except per share data) |
| | | | | | | | | | | | | | | | | | |
| ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES | | | | | | | | | | | | | | | | | |
| Beginning balance | | $ | 28,097 | | $ | 27,395 | | $ | 26,141 | | $ | 25,534 | | | $ | 26,146 | |
| Provision charged to expense | | | 1,608 | | | 1,198 | | | 2,073 | | | 1,177 | | | | 1,635 | |
| Loans/leases charged off | | | (987 | ) | | (634 | ) | | (868 | ) | | (1,106 | ) | | | (2,476 | ) |
| Recoveries on loans/leases previously charged off | | | 109 | | | 138 | | | 49 | | | 536 | | | | 229 | |
| Ending balance | | $ | 28,827 | | $ | 28,097 | | $ | 27,395 | | $ | 26,141 | | | $ | 25,534 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| NONPERFORMING ASSETS (2) | | | | | | | | | | | | | | | | | |
| Nonaccrual loans/leases | | $ | 14,371 | | $ | 10,737 | | $ | 10,772 | | $ | 10,648 | | | $ | 11,269 | |
| Accruing loans/leases past due 90 days or more | | | 392 | | | 86 | | | 47 | | | 3 | | | | 3 | |
| Troubled debt restructures - accruing | | | 1,825 | | | 1,753 | | | 1,157 | | | 1,054 | | | | 1,040 | |
| Total nonperforming loans/leases | | | 16,588 | | | 12,576 | | | 11,705 | | | 12,312 | | | | 14,854 | |
| Other real estate owned | | | 5,808 | | | 6,179 | | | 6,680 | | | 7,151 | | | | 8,140 | |
| Other repossessed assets | | | 353 | | | 154 | | | 46 | | | 246 | | | | 194 | |
| Total nonperforming assets | | $ | 22,749 | | $ | 18,909 | | $ | 19,102 | | $ | 20,646 | | | $ | 27,103 | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| ASSET QUALITY RATIOS | | | | | | | | | | | | | | | | | |
| Nonperforming assets / total assets | | | 0.69 | % | | 0.70 | % | | 0.71 | % | | 0.74 | % | | | 0.80 | % |
| Allowance / total loans/leases (1) | | | 1.22 | % | | 1.46 | % | | 1.46 | % | | 1.45 | % | | | 1.45 | % |
| Allowance / nonperforming loans/leases (1) | | | 173.78 | % | | 223.42 | % | | 228.75 | % | | 223.33 | % | | | 207.39 | % |
| | | | | | |
| (1) Upon acquisition and per GAAP, acquired loans are recorded at market value which eliminated the allowance and impacts these ratios. |
| (2) The increase in nonperforming assets during the third quarter of 2016 was the result of the acquisition of CSB. |
| |
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, |
| SELECT FINANCIAL DATA - SUBSIDIARIES | | 2016
| | 2016
| | 2015
| | 2016
| | 2015
|
| | | | | | | | | | | | | | | | | | | | | |
| | | (dollars in thousands) |
| | | | | | | | | | | |
| TOTAL ASSETS | | | | | | | | | | |
| | | | | | | | | | | |
| Quad City Bank and Trust (1) | | $ | 1,407,733 | | | $ | 1,390,025 | | | $ | 1,328,053 | | | | | |
| m2 Lease Funds, LLC | | | 208,080 | | | | 207,334 | | | | 195,712 | | | | | |
| Cedar Rapids Bank and Trust | | | 887,593 | | | | 904,367 | | | | 867,064 | | | | | |
| Community State Bank - Ankeny | | | 580,210 | | | | N/A | | | | N/A | | | | | |
| Rockford Bank and Trust | | | 393,192 | | | | 402,157 | | | | 360,348 | | | | | |
| | | | | | | | | | | |
| TOTAL DEPOSITS | | | | | | | | | | |
| | | | | | | | | | | |
| Quad City Bank and Trust (1) | | $ | 1,110,512 | | | $ | 1,049,049 | | | $ | 919,904 | | | | | |
| Cedar Rapids Bank and Trust | | | 727,446 | | | | 690,377 | | | | 685,537 | | | | | |
| Community State Bank - Ankeny | | | 481,256 | | | | N/A | | | | N/A | | | | | |
| Rockford Bank and Trust | | | 294,193 | | | | 296,613 | | | | 254,050 | | | | | |
| | | | | | | | | | | |
| TOTAL LOANS & LEASES | | | | | | | | | | |
| | | | | | | | | | | |
| Quad City Bank and Trust (1) | | $ | 994,628 | | | $ | 968,905 | | | $ | 853,755 | | | | | |
| m2 Lease Funds, LLC | | | 206,800 | | | | 205,883 | | | | 194,911 | | | | | |
| Cedar Rapids Bank and Trust | | | 634,929 | | | | 648,727 | | | | 617,215 | | | | | |
| Community State Bank - Ankeny | | | 419,498 | | | | N/A | | | | N/A | | | | | |
| Rockford Bank and Trust | | | 311,545 | | | | 305,141 | | | | 284,703 | | | | | |
| | | | | | | | | | | |
| TOTAL LOANS & LEASES / TOTAL ASSETS | | | | | | | | | | |
| | | | | | | | | | | |
| Quad City Bank and Trust (1) | | | 71 | % | | | 70 | % | | | 64 | % | | | | |
| Cedar Rapids Bank and Trust | | | 72 | % | | | 72 | % | | | 71 | % | | | | |
| Community State Bank - Ankeny | | | 72 | % | | | N/A | | | | N/A | | | | | |
| Rockford Bank and Trust | | | 79 | % | | | 76 | % | | | 79 | % | | | | |
| | | | | | | | | | | |
| ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES | | | | | | | | | | |
| | | | | | | | | | | |
| Quad City Bank and Trust (1) | | | 1.30 | % | | | 1.31 | % | | | 1.34 | % | | | | |
| m2 Lease Funds, LLC | | | 1.69 | % | | | 1.80 | % | | | 1.80 | % | | | | |
| Cedar Rapids Bank and Trust | | | 1.69 | % | | | 1.65 | % | | | 1.60 | % | | | | |
| Community State Bank - Ankeny (2) | | | 0.07 | % | | | N/A | | | | N/A | | | | | |
| Rockford Bank and Trust | | | 1.58 | % | | | 1.53 | % | | | 1.49 | % | | | | |
| | | | | | | | | | | |
| RETURN ON AVERAGE ASSETS | | | | | | | | | | |
| | | | | | | | | | | |
| Quad City Bank and Trust (1) | | | 1.12 | % | | | 1.24 | % | | | 1.23 | % | | | 1.10 | % | | | 0.79 | % |
| Cedar Rapids Bank and Trust | | | 1.48 | % | | | 1.46 | % | | | 1.36 | % | | | 1.44 | % | | | 0.77 | % |
| Community State Bank - Ankeny (3) | | | 0.39 | % | | | N/A | | | | N/A | | | | 0.39 | % | | | N/A | |
| Rockford Bank and Trust | | | 0.96 | % | | | 0.80 | % | | | 0.88 | % | | | 0.81 | % | | | 0.65 | % |
| | | | | | | | | | | |
| NET INTEREST MARGIN PERCENTAGE (4) | | | | | | | | | | |
| | | | | | | | | | | |
| Quad City Bank and Trust (1) | | | 3.61 | % | | | 3.66 | % | | | 3.49 | % | | | 3.63 | % | | | 3.30 | % |
| Cedar Rapids Bank and Trust | | | 3.93 | % | | | 3.77 | % | | | 3.71 | % | | | 3.82 | % | | | 3.66 | % |
| Community State Bank - Ankeny (5) | | | 4.99 | % | | | N/A | | | | N/A | | | | 4.99 | % | | | N/A | |
| Rockford Bank and Trust | | | 3.50 | % | | | 3.49 | % | | | 3.41 | % | | | 3.51 | % | | | 3.41 | % |
| | | | | | | | | | | |
| | | | | | | | | | | |
| (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) Upon acquisition and per GAAP, acquired loans are recorded at market value which eliminated the allowance and impacts this ratio. |
| (3) Community State Bank's return on average assets includes acquisition costs and various purchase accounting adjustments. |
| (4) 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. |
| (5) Community State Bank net interest margin includes approximately $413K of pre-tax acquisition-related amortization/accretion, net. |
| |
QCR HOLDINGS, INC.
|
| CONSOLIDATED FINANCIAL HIGHLIGHTS |
| (Unaudited) |
| | | | | | | | | | | | | | | |
| | | As of | | | | |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | | | | |
| GAAP TO NON-GAAP RECONCILIATIONS | | 2016 | | 2016 | | 2016 | | 2015 | | 2015 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (dollars in thousands, except per share data) | | | | |
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1) | | | | | | | | | | | | | | |
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| Stockholders' equity (GAAP) | | $ | 280,857 | | | $ | 275,117 | | | $ | 235,143 | | | $ | 225,886 | | | $ | 221,115 | | | | | |
| Less: Intangible assets | | | 22,755 | | | | 4,595 | | | | 4,645 | | | | 4,694 | | | | 4,744 | | | | | |
| Tangible common equity (non-GAAP) | | $ | 258,102 | | | $ | 270,522 | | | $ | 230,498 | | | $ | 221,192 | | | $ | 216,371 | | | | | |
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| Total assets (GAAP) | | $ | 3,280,986 | | | $ | 2,683,434 | | | $ | 2,640,673 | | | $ | 2,593,198 | | | $ | 2,575,855 | | | | | |
| Less: Intangible assets | | | 22,755 | | | | 4,595 | | | | 4,645 | | | | 4,694 | | | | 4,744 | | | | | |
| Tangible assets (non-GAAP) | | $ | 3,258,231 | | | $ | 2,678,839 | | | $ | 2,636,028 | | | $ | 2,588,504 | | | $ | 2,571,111 | | | | | |
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| Tangible common equity to tangible assets ratio (non-GAAP) | | | 7.92 | % | | | 10.10 | % | | | 8.74 | % | | | 8.55 | % | | | 8.42 | % | | | | |
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| | | For the Quarter Ended | | For the Nine Months Ended |
| | | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | | September 30, | | September 30, |
| CORE NET INCOME (2) | | 2016 | | 2016 | | 2016 | | 2015 | | 2015 | | 2016 | | 2015 |
| | | | | | | | | | | | | | | |
| Net income (GAAP) | | $ | 6,108 | | | $ | 6,676 | | | $ | 6,373 | | | $ | 6,785 | | | $ | 6,489 | | | $ | 19,157 | | | $ | 10,143 | |
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| Less nonrecurring items (post-tax) (3): | | | | | | | | | | | | | | |
| Income: | | | | | | | | | | | | | | |
| Securities gains | | $ | 2,764 | | | $ | 12 | | | $ | 233 | | | $ | 211 | | | $ | 37 | | | $ | 3,009 | | | $ | 308 | |
| Lawsuit award | | | - | | | | - | | | | - | | | | - | | | | 252 | | | | - | | | | 252 | |
| Total nonrecurring income (non-GAAP) | | $ | 2,764 | | | $ | 12 | | | $ | 233 | | | $ | 211 | | | $ | 289 | | | $ | 3,009 | | | $ | 560 | |
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| Expense: | | | | | | | | | | | | | | |
| Losses on debt extinguishment | | $ | 2,689 | | | $ | - | | | $ | 54 | | | $ | 189 | | | $ | - | | | $ | 2,743 | | | $ | 4,481 | |
| Acquisition costs (4) | | | 1,506 | | | | 231 | | | | - | | | | - | | | | - | | | | 1,737 | | | | - | |
| Other non-recurring expenses | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 513 | |
| Accrual adjustments | | | - | | | | - | | | | - | | | | (487 | ) | | | - | | | | - | | | | - | |
| Total nonrecurring expense (non-GAAP) | | $ | 4,195 | | | $ | 231 | | | $ | 54 | | | $ | (298 | ) | | $ | - | | | $ | 4,480 | | | $ | 4,994 | |
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| Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (2) | | $ | 7,539 | | | $ | 6,895 | | | $ | 6,194 | | | $ | 6,276 | | | $ | 6,200 | | | $ | 20,628 | | | $ | 14,577 | |
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| CORE EARNINGS PER COMMON SHARE (2) | | | | | | | | | | | | | | |
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| Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (from above) | | $ | 7,539 | | | $ | 6,895 | | | $ | 6,194 | | | $ | 6,276 | | | $ | 6,200 | | | $ | 20,628 | | | $ | 14,577 | |
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| Weighted average common shares outstanding | | | 13,066,777 | | | | 12,335,077 | | | | 11,793,620 | | | | 11,744,495 | | | | 11,713,993 | | | | 12,398,491 | | | | 9,878,882 | |
| Weighted average common and common equivalent shares outstanding | | 13,269,703 | | | | 12,516,474 | | | | 11,953,949 | | | | 11,926,038 | | | | 11,875,930 | | | | 12,580,042 | | | | 10,024,441 | |
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| Core earnings per common share (non-GAAP): | | | | | | | | | | | | | | |
| Basic | | $ | 0.58 | | | $ | 0.56 | | | $ | 0.53 | | | $ | 0.53 | | | $ | 0.53 | | | $ | 1.66 | | | $ | 1.48 | |
| Diluted | | $ | 0.57 | | | $ | 0.55 | | | $ | 0.52 | | | $ | 0.53 | | | $ | 0.52 | | | $ | 1.64 | | | $ | 1.45 | |
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| CORE RETURN ON AVERAGE ASSETS (2) | | | | | | | | | | | | | | |
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| Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (from above) | | $ | 7,539 | | | $ | 6,895 | | | $ | 6,194 | | | $ | 6,276 | | | $ | 6,200 | | | $ | 20,628 | | | $ | 14,577 | |
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| Average Assets | | $ | 2,865,947 | | | $ | 2,640,678 | | | $ | 2,602,350 | | | $ | 2,611,276 | | | $ | 2,563,739 | | | $ | 2,702,992 | | | $ | 2,529,469 | |
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| Core return on average assets (annualized) (non-GAAP) | | | 1.05 | % | | | 1.04 | % | | | 0.95 | % | | | 0.96 | % | | | 0.97 | % | | | 1.02 | % | | | 0.77 | % |
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| (1) This ratio is a non-GAAP financial measure. The Company's management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders' equity and total assets, which are the most directly comparable GAAP financial measures. |
| (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 measurements are important to investors as they exclude non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net income, which is the most directly comparable GAAP financial measure. |
| (3) Nonrecurring items (post-tax) are calculated using an estimated effective tax rate of 35%. |
| (4) Acquisition costs were analyzed individually for deductibility. Presented amounts are tax-effected accordingly. |
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Contact:
Todd A. Gipple
Executive Vice President
Chief Operating Officer
Chief Financial Officer
(309) 743-7745
