EXHIBIT 99.1
QCR Holdings, Inc. Announces Record Net Income of $8.5 Million for the Fourth Quarter of 2016 and Record Net Income of $27.7 Million for the Year
MOLINE, Ill., Feb. 01, 2017 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ:QCRH) today announced net income of $8.5 million and diluted earnings per share (“EPS”) of $0.64 for the quarter ended December 31, 2016. By comparison, for the quarter ended September 30, 2016, the Company reported net income of $6.1 million and diluted EPS of $0.46, which included $1.5 million of acquisition costs (after-tax) related to the acquisition of Community State Bank (“CSB”) in August 2016. 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 for the third quarter of 2016. For the fourth quarter of 2015, the Company reported net income of $6.8 million and diluted EPS of $0.57.
For the year ended December 31, 2016, the Company reported net income of $27.7 million and diluted EPS of $2.17. Excluding acquisition costs and other non-core items, the Company reported core net income (non-GAAP) of $29.4 million and diluted EPS of $2.31. By comparison, for the year ended December 31, 2015, the Company reported net income of $16.9 million and diluted EPS of $1.61, which included several nonrecurring items, including $4.7 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 2016 has been solid,” commented Douglas M. Hultquist, President and Chief Executive Officer, “and we continue to strategize and pursue ways to improve our profitability through our ongoing key initiatives. Our core return on average assets (non-GAAP) has improved to 1.03% from 0.82%, when comparing the full year of 2016 to the prior year. This is the result of strong organic loan growth, robust growth in core deposits, reductions in wholesale borrowings, continued margin improvements, modest operating expense growth, and strong fee income.”
Organic Loan and Lease Growth of 10.5% for Year
Swap Fee Income and Gains on the Sale of Government Guaranteed Loans Total $4.9 Million in 2016
During the fourth quarter of 2016, the Company’s total assets increased $21.0 million, or 1%, to a total of $3.30 billion, while total loans and leases grew $44.9 million, or 1.9%. Loan and lease growth was funded by deposits, which increased $74.3 million, or 2.9%, in the fourth quarter. This deposit growth also allowed the Company to further reduce borrowings.
“Organic loan and lease growth totaled $188.4 million for 2016, or an annual growth rate of 10.5%,” commented Mr. Hultquist. “For the third consecutive year, we’ve been able to achieve targeted organic growth of 10-12%, primarily through market share increases. Customers continue to appreciate the way we do business and are attracted to our relationship-based community banking model.”
“Swap fee income and gains on the sale of government guaranteed loans were strong for the year, totaling $4.9 million,” said Todd A. Gipple, Executive Vice President, Chief Operating Officer and Chief Financial Officer. “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 the Des Moines metro market through our recently acquired bank, CSB-Ankeny.”
Net Interest Margin Expanded 32 Basis Points in Fourth Quarter
Due to Q3 Balance Sheet Restructure, Acquisition Accounting and First Full Quarter including CSB
Net interest income totaled $29.3 million for the quarter ended December 31, 2016. By comparison, net interest income totaled $23.6 million and $19.9 million for the quarters ended September 30, 2016 and December 31, 2015, respectively. Net interest income totaled $94.5 million for the year ended December 31, 2016, an increase of 23.9% from the prior year. Net interest income attributable to CSB totaled $10.0 million for the partial year and included $3.2 million of net accretion related to purchase accounting adjustments.
“Net interest margin increased to 4.02% in the fourth quarter,” stated Mr. Gipple. He added, “The improvement in margin was attributable to the previously announced balance sheet restructure at the end of the third quarter, as well as the addition of CSB. One-time acceleration for the fourth quarter was approximately $1.3 million and was the result of payoffs/refinances of acquired performing loans, the prepayment of purchased credit impaired loans and the prepayment of FHLB advances that were acquired at a premium. Excluding the effects of this acceleration, net interest margin would have been 3.84%. By comparison, third quarter net interest margin was 3.70% excluding the effects of acceleration due to the prepayment of purchased credit impaired loans.”
Nonperforming Assets to Total Assets Ratio Increased in Fourth Quarter
Nonperforming assets (“NPAs”) increased $4.2 million in the current quarter. The ratio of NPAs to total assets was 0.82% at December 31, 2016, which was up from 0.69% at September 30, 2016 and up from 0.74% a year ago.
“Two large relationships primarily account for the increase in NPAs in the fourth quarter. The Company is not anticipating significant losses related to these two credits. We believe that these issues are isolated and not reflective of the overall portfolio,” stated Mr. Hultquist. He continued, “We remain committed to improving asset quality in 2017.”
The Company’s provision for loan and lease losses totaled $2.6 million for the fourth quarter of 2016, which was up $991 thousand from the prior quarter, and up $1.4 million compared to the fourth quarter of 2015. The increase in provision in the fourth quarter of 2016 was primarily attributable to CSB. As acquired loans renew, the discount associated with those loans is accelerated and the Company must re-establish a loan loss reserve. This resulted in $1.2 million of provision expense in the fourth quarter. As of December 31, 2016, the Company’s allowance to total loans and leases was 1.28%, which was up from 1.22% at September 30, 2016 and down from 1.45% at December 31, 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 ($10.1 million at December 31, 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 1.28% to 1.70%.
Capital Levels Remain Strong
The Company’s total risk-based capital ratio was 11.74%, the common equity tier 1 ratio was 9.55% and the tangible common equity to tangible assets ratio increased to 8.04%, all as of December 31, 2016. For comparison, these respective ratios were 11.30%, 9.22% and 7.92% as of September 30, 2016.
“As a result of solid earnings performance, capital ratios continue to be strong and we are growing tangible common equity at a steady pace,” stated Mr. Gipple.
Continued Focus on Seven Key Initiatives
The Company continues to focus on the following initiatives in an effort to improve profitability and drive increased shareholder value:
- Continue strong organic loan and lease growth to maintain loans and leases to total assets ratio in the range of 70-75%
- Continue focus on growing core deposits to maintain reliance on wholesale funding at less than 15% of assets
- Continue to focus on generating gains on sale of USDA and SBA loans, and fee income on swaps, as a significant and consistent component of core revenue
- Grow wealth management fee income by 10% annually
- Carefully manage noninterest expense growth
- Maintain asset quality metrics at 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, 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 | |
| | December 31, | September 30, | June 30, | March 31, | December 31, | |
| | | 2016 | | 2016 | | 2016 | | 2016 | | 2015 | |
| | | | | | | |
| | (dollars in thousands) | |
| | | | | | | |
| CONDENSED BALANCE SHEET | | | | | | |
| | | | | | | |
| Cash and due from banks | $ | 70,570 | $ | 61,213 | $ | 49,581 | $ | 44,931 | $ | 41,742 | |
| Federal funds sold and interest-bearing deposits | | 86,206 | | 96,047 | | 68,432 | | 57,229 | | 56,164 | |
| Securities | | 574,022 | | 564,930 | | 510,959 | | 537,317 | | 577,109 | |
| Net loans/leases | | 2,374,730 | | 2,331,774 | | 1,894,676 | | 1,846,428 | | 1,771,882 | |
| Core deposit intangible | | 7,381 | | 7,614 | | 1,372 | | 1,422 | | 1,471 | |
| Goodwill | | 13,111 | | 13,632 | | 3,223 | | 3,223 | | 3,223 | |
| Other assets | | 175,924 | | 205,776 | | 155,191 | | 150,123 | | 141,607 | |
| Total assets | $ | 3,301,944 | $ | 3,280,986 | $ | 2,683,434 | $ | 2,640,673 | $ | 2,593,198 | |
| | | | | | | |
| Total deposits | $ | 2,669,261 | $ | 2,594,913 | $ | 1,973,594 | $ | 1,989,573 | $ | 1,880,666 | |
| Total borrowings | | 290,952 | | 312,104 | | 381,874 | | 347,901 | | 444,162 | |
| Other liabilities | | 55,690 | | 93,112 | | 52,849 | | 68,056 | | 42,484 | |
| Total stockholders' equity | | 286,041 | | 280,857 | | 275,117 | | 235,143 | | 225,886 | |
| Total liabilities and stockholders' equity | $ | 3,301,944 | $ | 3,280,986 | $ | 2,683,434 | $ | 2,640,673 | $ | 2,593,198 | |
| | | | | | | |
| ANALYSIS OF LOAN PORTFOLIO | | | | | | |
| Loan/lease mix: | | | | | | |
| Commercial and industrial loans | $ | 827,637 | $ | 804,308 | $ | 706,261 | $ | 682,057 | $ | 648,160 | |
| Commercial real estate loans | | 1,093,459 | | 1,070,305 | | 784,379 | | 766,159 | | 724,369 | |
| Direct financing leases | | 165,419 | | 166,924 | | 169,928 | | 172,774 | | 173,656 | |
| Residential real estate loans | | 229,233 | | 229,081 | | 180,482 | | 173,096 | | 170,433 | |
| Installment and other consumer loans | | 81,666 | | 81,918 | | 73,658 | | 71,842 | | 73,669 | |
| Deferred loan/lease origination costs, net of fees | | 8,073 | | 8,065 | | 8,065 | | 7,895 | | 7,736 | |
| Total loans/leases | $ | 2,405,487 | $ | 2,360,601 | $ | 1,922,773 | $ | 1,873,823 | $ | 1,798,023 | |
| Less allowance for estimated losses on loans/leases | | 30,757 | | 28,827 | | 28,097 | | 27,395 | | 26,141 | |
| Net loans/leases | $ | 2,374,730 | $ | 2,331,774 | $ | 1,894,676 | $ | 1,846,428 | $ | 1,771,882 | |
| | | | | | | |
| ANALYSIS OF SECURITIES PORTFOLIO | | | | | | |
| Securities mix: | | | | | | |
| U.S. government sponsored agency securities | $ | 46,084 | $ | 67,885 | $ | 88,321 | $ | 132,742 | $ | 213,537 | |
| Municipal securities | | 374,463 | | 360,330 | | 302,689 | | 285,009 | | 280,203 | |
| Residential mortgage-backed and related securities | | 147,702 | | 133,173 | | 116,765 | | 116,452 | | 80,670 | |
| Other securities | | 5,773 | | 3,542 | | 3,184 | | 3,114 | | 2,699 | |
| Total securities | $ | 574,022 | $ | 564,930 | $ | 510,959 | $ | 537,317 | $ | 577,109 | |
| | | | | | | |
| ANALYSIS OF DEPOSITS | | | | | | |
| Deposit mix: | | | | | | |
| Noninterest-bearing demand deposits | $ | 797,415 | $ | 764,615 | $ | 615,764 | $ | 641,859 | $ | 615,292 | |
| Interest-bearing demand deposits | | 1,369,226 | | 1,298,781 | | 918,036 | | 916,455 | | 886,294 | |
| Time deposits | | 439,169 | | 420,470 | | 337,584 | | 331,786 | | 309,974 | |
| Brokered deposits | | 63,451 | | 111,047 | | 102,210 | | 99,473 | | 69,106 | |
| Total deposits | $ | 2,669,261 | $ | 2,594,913 | $ | 1,973,594 | $ | 1,989,573 | $ | 1,880,666 | |
| | | | | | | |
| ANALYSIS OF BORROWINGS | | | | | | |
| Borrowings mix: | | | | | | |
| Term FHLB advances | $ | 63,000 | $ | 83,343 | $ | 78,000 | $ | 80,000 | $ | 97,000 | |
| Overnight FHLB advances (1) | | 74,500 | | 55,300 | | 118,900 | | 70,500 | | 54,000 | |
| Wholesale structured repurchase agreements | | 45,000 | | 45,000 | | 100,000 | | 100,000 | | 110,000 | |
| Customer repurchase agreements | | 8,132 | | 8,265 | | 21,441 | | 52,153 | | 73,873 | |
| Federal funds purchased | | 31,840 | | 51,750 | | 30,120 | | 11,870 | | 70,790 | |
| Junior subordinated debentures | | 33,480 | | 33,446 | | 33,413 | | 33,378 | | 38,499 | |
| Other borrowings | | 35,000 | | 35,000 | | - | | - | | - | |
| Total borrowings | $ | 290,952 | $ | 312,104 | $ | 381,874 | $ | 347,901 | $ | 444,162 | |
| | | | | | | |
| (1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 0.81%. | |
| | | | | | | |
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited) |
| | | | | | | | |
| | | | For the Year Ended | | |
| | | | December 31, | | December 31, | | |
| | | | | 2016 | | | 2015 | | | |
| | | | | | | | |
| | | (dollars in thousands, except per share data) | |
| | | | | | | | |
| INCOME STATEMENT | | | | | | |
| Interest income | | $ | 106,468 | | $ | 90,003 | | | |
| Interest expense | | | 11,951 | | | 13,707 | | | |
| Net interest income | | | 94,517 | | | 76,296 | | | |
| Provision for loan/lease losses | | | 7,478 | | | 6,871 | | | |
| Net interest income after provision for loan/lease losses | | $ | 87,039 | | $ | 69,425 | | | |
| | | | | | | | |
| Trust department fees | | $ | 6,164 | | $ | 6,131 | | | |
| Investment advisory and management fees | | | 2,993 | | | 2,972 | | | |
| Deposit service fees | | | 4,440 | | | 3,785 | | | |
| Gain on sales of residential real estate loans | | | 431 | | | 323 | | | |
| Gain on sales of government guaranteed portions of loans | | | 3,159 | | | 1,305 | | | |
| Swap fee income | | | 1,708 | | | 1,718 | | | |
| Securities gains, net | | | 4,592 | | | 799 | | | |
| Earnings on bank-owned life insurance | | | 1,771 | | | 1,762 | | | |
| Debit card fees | | | 1,815 | | | 1,245 | | | |
| Correspondent banking fees | | | 1,050 | | | 1,190 | | | |
| Other | | | | 2,914 | | | 3,133 | | | |
| Total noninterest income | | $ | 31,037 | | $ | 24,363 | | | |
| | | | | | | | |
| Salaries and employee benefits | | $ | 46,317 | | $ | 42,968 | | | |
| Occupancy and equipment expense | | | 8,405 | | | 7,043 | | | |
| Professional and data processing fees | | | 7,113 | | | 5,523 | | | |
| Acquisition costs | | | 2,441 | | | - | | | |
| FDIC insurance, other insurance and regulatory fees | | | 2,549 | | | 2,725 | | | |
| Loan/lease expense | | | 662 | | | 882 | | | |
| Net cost of operation of other real estate | | | 591 | | | (1,092 | ) | | |
| Advertising and marketing | | | 2,128 | | | 1,901 | | | |
| Bank service charges | | | 1,693 | | | 1,486 | | | |
| Losses on debt extinguishment, net | | | 4,578 | | | 7,186 | | | |
| Correspondent banking expense | | | 751 | | | 703 | | | |
| Other | | | | 4,258 | | | 3,866 | | | |
| Total noninterest expense | | $ | 81,486 | | $ | 73,191 | | | |
| | | | | | | | |
| Net income before taxes | | $ | 36,590 | | $ | 20,597 | | | |
| Income tax expense | | | 8,903 | | | 3,669 | | | |
| Net income | | | $ | 27,687 | | $ | 16,928 | | | |
| | | | | | | | |
| Basic EPS | | $ | 2.20 | | $ | 1.64 | | | |
| Diluted EPS | | $ | 2.17 | | $ | 1.61 | | | |
| | | | | | | | |
| Weighted average common shares outstanding | | | 12,570,767 | | | 10,345,286 | | | |
| Weighted average common and common equivalent shares outstanding | | | 12,766,003 | | | 10,499,841 | | | |
| | | | | | | | |
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited) |
| | | | | | | | |
| | | | For the Quarter Ended |
| | | | December 31, | September 30, | June 30, | March 31, | December 31, |
| | | | | 2016 | | | 2016 | | 2016 | | 2016 | | 2015 | |
| | | | | | | | |
| | | | (dollars in thousands, except per share data) |
| | | | | | | | |
| INCOME STATEMENT | | | | | | |
| Interest income | | $ | 32,236 | | $ | 26,817 | $ | 23,913 | $ | 23,502 | $ | 22,910 | |
| Interest expense | | | 2,956 | | | 3,186 | | 2,904 | | 2,905 | | 3,024 | |
| Net interest income | | | 29,280 | | | 23,631 | | 21,009 | | 20,597 | | 19,886 | |
| Provision for loan/lease losses | | | 2,599 | | | 1,608 | | 1,198 | | 2,073 | | 1,177 | |
| Net interest income after provision for loan/lease losses | | $ | 26,681 | | $ | 22,023 | $ | 19,811 | $ | 18,524 | $ | 18,709 | |
| | | | | | | | |
| | | | | | | | |
| Trust department fees | | $ | 1,558 | | $ | 1,519 | $ | 1,512 | $ | 1,576 | $ | 1,455 | |
| Investment advisory and management fees | | | 876 | | | 766 | | 693 | | 658 | | 721 | |
| Deposit service fees | | | 1,411 | | | 1,151 | | 947 | | 931 | | 410 | |
| Gain on sales of residential real estate loans | | | 142 | | | 144 | | 84 | | 60 | | 57 | |
| Gain on sales of government guaranteed portions of loans | | | 458 | | | 219 | | 1,604 | | 879 | | 405 | |
| Swap fee income | | | 350 | | | 334 | | 168 | | 857 | | 535 | |
| Securities gains, net | | | (36 | ) | | 4,252 | | 18 | | 358 | | 325 | |
| Earnings on bank-owned life insurance | | | 447 | | | 450 | | 480 | | 394 | | 443 | |
| Debit card fees | | | 688 | | | 475 | | 344 | | 308 | | 333 | |
| Correspondent banking fees | | | 249 | | | 254 | | 245 | | 302 | | 275 | |
| Participation service fees on commercial loan participations | | | 249 | | | 237 | | 246 | | 211 | | 218 | |
| Other | | | | 637 | | | 622 | | 421 | | 288 | | 1,035 | |
| Total noninterest income | | $ | 7,029 | | $ | 10,423 | $ | 6,762 | $ | 6,822 | $ | 6,212 | |
| | | | | | | | |
| | | | | | | | |
| Salaries and employee benefits | | $ | 13,396 | | $ | 11,202 | $ | 10,917 | $ | 10,801 | $ | 10,258 | |
| Occupancy and equipment expense | | | 2,630 | | | 2,086 | | 1,885 | | 1,827 | | 1,535 | |
| Professional and data processing fees | | | 2,192 | | | 1,931 | | 1,542 | | 1,447 | | 840 | |
| Acquisition costs | | | 40 | | | 2,046 | | 355 | | - | | - | |
| FDIC insurance, other insurance and regulatory fees | | | 683 | | | 583 | | 650 | | 634 | | 573 | |
| Loan/lease expense | | | 242 | | | 103 | | 154 | | 163 | | 281 | |
| Net cost of operation of other real estate | | | 78 | | | 133 | | 278 | | 102 | | (4 | ) |
| Advertising and marketing | | | 760 | | | 548 | | 433 | | 386 | | 532 | |
| Bank service charges | | | 446 | | | 415 | | 415 | | 416 | | 396 | |
| Losses on debt extinguishment, net | | | 357 | | | 4,137 | | - | | 83 | | 291 | |
| Correspondent banking expense | | | 186 | | | 206 | | 182 | | 177 | | 139 | |
| Other | | | | 1,298 | | | 1,090 | | 933 | | 918 | | 1,032 | |
| Total noninterest expense | | $ | 22,308 | | $ | 24,480 | $ | 17,744 | $ | 16,954 | $ | 15,873 | |
| | | | | | | | |
| Net income before taxes | | $ | 11,402 | | $ | 7,966 | $ | 8,829 | $ | 8,392 | $ | 9,048 | |
| Income tax expense | | | 2,873 | | | 1,858 | | 2,153 | | 2,019 | | 2,263 | |
| Net income | | | $ | 8,529 | | $ | 6,108 | $ | 6,676 | $ | 6,373 | $ | 6,785 | |
| | | | | | | | |
| Basic EPS | | $ | 0.65 | | $ | 0.47 | $ | 0.54 | $ | 0.54 | $ | 0.58 | |
| Diluted EPS | | $ | 0.64 | | $ | 0.46 | $ | 0.53 | $ | 0.53 | $ | 0.57 | |
| | | | | | | | |
| Weighted average common shares outstanding | | | 13,087,592 | | | 13,066,777 | | 12,335,077 | | 11,793,620 | | 11,744,495 | |
| Weighted average common and common equivalent shares outstanding | | 13,323,883 | | | 13,269,703 | | 12,516,474 | | 11,953,949 | | 11,926,038 | |
| | | | | | | | |
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited) |
| | | | | | | | | | |
| | For the Quarter Ended | | For the Year Ended | |
| | December 31, | September 30, | June 30, | March 31, | December 31, | | December 31, | December 31, | |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | | | | 2016 | | | 2015 | | |
| | | | | | | | | | |
| | (dollars in thousands, except per share data) | |
| |
| COMMON SHARE DATA | | | | | | | | | |
| Common shares outstanding | | 13,106,845 | | | 13,075,307 | | | 13,057,368 | | | 11,814,911 | | | 11,761,083 | | | | | |
| Book value per common share (1) | $ | 21.82 | | $ | 21.48 | | $ | 21.07 | | $ | 19.90 | | $ | 19.21 | | | | | |
| Tangible book value per common share (2) | $ | 20.11 | | $ | 19.74 | | $ | 20.72 | | $ | 19.51 | | $ | 18.81 | | | | | |
| Closing stock price | $ | 43.30 | | $ | 31.74 | | $ | 27.19 | | $ | 23.79 | | $ | 24.29 | | | | | |
| Market capitalization | $ | 567,526 | | $ | 415,010 | | $ | 355,030 | | $ | 281,077 | | $ | 285,677 | | | | | |
| Market price / book value | | 198.41 | % | | 147.77 | % | | 129.05 | % | | 119.53 | % | | 126.47 | % | | | | |
| Market price / tangible book value | | 215.36 | % | | 160.79 | % | | 131.24 | % | | 121.94 | % | | 129.15 | % | | | | |
| Earnings per common share (basic) LTM (3) | $ | 2.20 | | $ | 2.13 | | $ | 2.21 | | $ | 1.62 | | $ | 1.64 | | | | | |
| Price earnings ratio LTM (3) | 19.68 x | 14.90 x | 12.30 x | 14.69 x | 14.81 x | | | | |
| TCE / TA (4) | | 8.04 | % | | 7.92 | % | | 10.10 | % | | 8.74 | % | | 8.55 | % | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | | | | | |
| Beginning balance | $ | 280,857 | | $ | 275,117 | | $ | 235,143 | | $ | 225,886 | | $ | 221,115 | | | | | |
| Net income | | 8,529 | | | 6,108 | | | 6,676 | | | 6,373 | | | 6,785 | | | | | |
| Other comprehensive income (loss), net of tax | | (3,681 | ) | | (361 | ) | | 1,181 | | | 2,525 | | | (2,287 | ) | | | | |
| Common stock cash dividends declared | | (523 | ) | | (521 | ) | | (521 | ) | | (471 | ) | | (469 | ) | | | | |
| Proceeds from issuance of 1,215,000 shares of common stock, net of costs | | - | | | - | | | 29,829 | | | - | | | - | | | | | |
| Other (5) | | 859 | | | 514 | | | 2,809 | | | 830 | | | 742 | | | | | |
| Ending balance | $ | 286,041 | | $ | 280,857 | | $ | 275,117 | | $ | 235,143 | | $ | 225,886 | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| REGULATORY CAPITAL RATIOS (6): | | | | | | | | | |
| Total risk-based capital ratio | | 11.74 | % | | 11.30 | % | | 14.29 | % | | 12.68 | % | | 13.11 | % | | | | |
| Tier 1 risk-based capital ratio | | 10.62 | % | | 10.29 | % | | 13.04 | % | | 11.45 | % | | 11.88 | % | | | | |
| Tier 1 leverage capital ratio | | 9.10 | % | | 10.09 | % | | 11.18 | % | | 9.85 | % | | 9.75 | % | | | | |
| Common equity tier 1 ratio | | 9.55 | % | | 9.22 | % | | 11.72 | % | | 10.11 | % | | 10.33 | % | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| KEY PERFORMANCE RATIOS AND OTHER METRICS | | | | | | | | | |
| Return on average assets (annualized) | | 1.04 | % | | 0.85 | % | | 1.01 | % | | 0.98 | % | | 1.04 | % | | | 0.97 | % | | 0.66 | % | |
| Return on average total equity (annualized) | | 12.04 | % | | 8.78 | % | | 10.46 | % | | 11.02 | % | | 12.14 | % | | | 10.56 | % | | 8.79 | % | |
| Net interest margin | | 3.80 | % | | 3.48 | % | | 3.40 | % | | 3.37 | % | | 3.20 | % | | | 3.53 | % | | 3.17 | % | |
| Net interest margin (TEY) (Non-GAAP)(7) | | 4.02 | % | | 3.71 | % | | 3.62 | % | | 3.59 | % | | 3.41 | % | | | 3.75 | % | | 3.37 | % | |
| Efficiency ratio (Non-GAAP) (9) | | 61.44 | % | | 71.89 | % | | 63.89 | % | | 61.83 | % | | 60.82 | % | | | 64.90 | % | | 72.71 | % | |
| Gross loans and leases / total assets | | 72.85 | % | | 71.95 | % | | 71.65 | % | | 70.96 | % | | 69.34 | % | | | 72.85 | % | | 69.34 | % | |
| Full-time equivalent employees (8) | | 572 | | | 572 | | | 410 | | | 406 | | | 406 | | | | 572 | | | 406 | | |
| | | | | | | | | | |
| | | | | | | | | | |
| AVERAGE BALANCES | | | | | | | | | |
| Assets | $ | 3,277,814 | | $ | 2,865,947 | | $ | 2,640,678 | | $ | 2,602,350 | | $ | 2,611,276 | | | $ | 2,846,697 | | $ | 2,549,921 | | |
| Loans/leases | | 2,358,960 | | | 2,077,376 | | | 1,899,932 | | | 1,833,950 | | | 1,764,275 | | | | 2,042,555 | | | 1,707,523 | | |
| Deposits | | 2,717,923 | | | 2,243,397 | | | 2,033,116 | | | 1,980,056 | | | 1,978,737 | | | | 2,243,623 | | | 1,851,584 | | |
| Total stockholders' equity | | 283,292 | | | 278,369 | | | 255,391 | | | 231,247 | | | 223,553 | | | | 262,075 | | | 192,489 | | |
| | | | | | | | | | |
| (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. See GAAP to Non-GAAP reconciliations. |
| (8) Full-time equivalent employees increased by 162 in the 3rd quarter of 2016 due to the acquisition of Community State Bank. |
| (9) See GAAP to Non-GAAP reconciliations. |
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited) |
| | | | | | | | | | | | | |
ANALYSIS OF NET INTEREST INCOME AND MARGIN
| | | | | | | | | |
| | | | | | | | | | | | | |
| | | For the Quarter Ended |
| | | December 31, 2016 | | September 30, 2016 | | December 31, 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 | | $ | 11,475 | $ | 9 | 0.31 | % | | $ | 17,685 | $ | 13 | 0.29 | % | | $ | 14,027 | $ | 6 | 0.17 | % |
| Interest-bearing deposits at financial institutions | | 123,838 | | 167 | 0.54 | % | | | 67,807 | | 103 | 0.60 | % | | | 101,006 | | 96 | 0.38 | % |
| Securities (1) | | | 562,164 | | 4,970 | 3.52 | % | | | 525,417 | | 4,826 | 3.65 | % | | | 572,531 | | 4,673 | 3.24 | % |
| Restricted investment securities | | 12,785 | | 126 | 3.92 | % | | | 14,877 | | 132 | 3.53 | % | | | 13,658 | | 126 | 3.66 | % |
| Loans (1) | | | 2,358,960 | | 28,691 | 4.84 | % | | | 2,077,376 | | 23,330 | 4.47 | % | | | 1,764,275 | | 19,330 | 4.35 | % |
| Total earning assets (1) | $ | 3,069,222 | $ | 33,963 | 4.40 | % | | $ | 2,703,162 | $ | 28,404 | 4.18 | % | | $ | 2,465,497 | $ | 24,231 | 3.90 | % |
| | | | | | | | | | | | | |
| Interest-bearing deposits | $ | 1,387,319 | $ | 928 | 0.27 | % | | $ | 1,116,325 | $ | 717 | 0.26 | % | | $ | 890,503 | $ | 478 | 0.21 | % |
| Time deposits | | | 496,855 | | 984 | 0.79 | % | | | 422,603 | | 755 | 0.71 | % | | | 381,109 | | 721 | 0.75 | % |
| Short-term borrowings | | 36,728 | | 20 | 0.22 | % | | | 30,208 | | 12 | 0.16 | % | | | 115,289 | | 36 | 0.12 | % |
| Federal Home Loan Bank advances (4) | | 83,231 | | 6 | 0.03 | % | | | 118,564 | | 421 | 1.41 | % | | | 105,509 | | 529 | 1.99 | % |
| Junior subordinated debentures | | 33,463 | | 325 | 3.86 | % | | | 33,430 | | 306 | 3.64 | % | | | 40,028 | | 319 | 3.16 | % |
| Other borrowings | | | 73,816 | | 693 | 3.73 | % | | | 116,856 | | 975 | 3.32 | % | | | 113,776 | | 941 | 3.28 | % |
| Total interest-bearing liabilities | $ | 2,111,412 | $ | 2,956 | 0.56 | % | | $ | 1,837,986 | $ | 3,186 | 0.69 | % | | $ | 1,646,214 | $ | 3,024 | 0.73 | % |
| | | | | | | | | | | | | |
| Net interest income / spread (1) | | $ | 31,007 | 3.84 | % | | | $ | 25,218 | 3.49 | % | | | $ | 21,207 | 3.17 | % |
| Net interest margin (2) | | | 3.80 | % | | | | 3.48 | % | | | | 3.20 | % |
| Net interest margin (TEY) (Non-GAAP (1) (2) (3) | | | 4.02 | % | | | | 3.71 | % | | | | 3.41 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | For the Year Ended | | | | |
| | | December 31, 2016 | | December 31, 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 | | $ | 15,142 | $ | 45 | 0.30 | % | | $ | 17,418 | $ | 25 | 0.14 | % | | | | |
| Interest-bearing deposits at financial institutions | | 70,757 | | 393 | 0.56 | % | | | 66,897 | | 304 | 0.45 | % | | | | |
| Securities (1) | | | 535,912 | | 19,054 | 3.56 | % | | | 599,648 | | 18,380 | 3.07 | % | | | | |
| Restricted investment securities | | 13,993 | | 522 | 3.73 | % | | | 14,727 | | 504 | 3.42 | % | | | | |
| Loans (1) | | | 2,042,555 | | 92,475 | 4.53 | % | | | 1,707,523 | | 75,670 | 4.43 | % | | | | |
| Total earning assets (1) | $ | 2,678,359 | $ | 112,489 | 4.20 | % | | $ | 2,406,213 | $ | 94,883 | 3.94 | % | | | | |
| | | | | | | | | | | | | |
| Interest-bearing deposits | $ | 1,092,687 | $ | 3,843 | 0.35 | % | | $ | 821,045 | $ | 1,836 | 0.22 | % | | | | |
| Time deposits | | | 436,070 | | 2,175 | 0.50 | % | | | 388,691 | | 2,660 | 0.68 | % | | | | |
| Short-term borrowings | | 50,899 | | 94 | 0.18 | % | | | 151,141 | | 210 | 0.14 | % | | | | |
| Federal Home Loan Bank advances (4) | | 114,797 | | 1,284 | 1.12 | % | | | 154,268 | | 3,511 | 2.28 | % | | | | |
| Junior subordinated debentures | | 33,735 | | 1,237 | 3.67 | % | | | 40,364 | | 1,256 | 3.11 | % | | | | |
| Other borrowings | | | 98,105 | | 3,318 | 3.38 | % | | | 126,902 | | 4,233 | 3.34 | % | | | | |
| Total interest-bearing liabilities | $ | 1,826,293 | $ | 11,951 | 0.65 | % | | $ | 1,682,411 | $ | 13,706 | 0.81 | % | | | | |
| | | | | | | | | | | | | |
| Net interest income / spread (1) | | $ | 100,538 | 3.55 | % | | | $ | 81,177 | 3.13 | % | | | | |
| Net interest margin (2) | | | 3.53 | % | | | | 3.17 | % | | | | |
| Net interest margin (TEY) (Non-GAAP) (1) (2) (3) | | | 3.75 | % | | | | 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. |
| (2) See "Select Financial Data - Subsidiaries" for a breakdown of amortization/accretion included in net interest margin for each period presented. |
| (3) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations. |
| (4) Average cost of Federal Home Loan Bank advances for the quarter and year ending December 31, 2016 was affected by the acceleration of the premium on advances recognized at the acquisition of CSB. $342 thousand was accelerated due to the prepayment of $15.0 million of advances in the fourth quarter of 2016. |
| | | |
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited) |
| |
| | As of | |
| | December 31, | September 30, | June 30, | March 31, | December 31, | |
| | | 2016 | | | 2016 | | | 2016 | | | 2016 | | | 2015 | | |
| | | | | | | |
| | (dollars in thousands, except per share data) | |
| | | | | | | |
| ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES | | | | | | |
| Beginning balance | $ | 28,827 | | $ | 28,097 | | $ | 27,395 | | $ | 26,141 | | $ | 25,534 | | |
| Provision charged to expense | | 2,599 | | | 1,608 | | | 1,198 | | | 2,073 | | | 1,177 | | |
| Loans/leases charged off | | (755 | ) | | (987 | ) | | (634 | ) | | (868 | ) | | (1,106 | ) | |
| Recoveries on loans/leases previously charged off | | 86 | | | 109 | | | 138 | | | 49 | | | 536 | | |
| Ending balance | $ | 30,757 | | $ | 28,827 | | $ | 28,097 | | $ | 27,395 | | $ | 26,141 | | |
| | | | | | | |
| | | | | | | |
| NONPERFORMING ASSETS (2) | | | | | | |
| Nonaccrual loans/leases | $ | 13,919 | | $ | 14,371 | | $ | 10,737 | | $ | 10,772 | | $ | 10,648 | | |
| Accruing loans/leases past due 90 days or more | | 967 | | | 392 | | | 86 | | | 47 | | | 3 | | |
| Troubled debt restructures - accruing | | 6,347 | | | 1,825 | | | 1,753 | | | 1,157 | | | 1,054 | | |
| Total nonperforming loans/leases | | 21,233 | | | 16,588 | | | 12,576 | | | 11,705 | | | 12,312 | | |
| Other real estate owned | | 5,523 | | | 5,808 | | | 6,179 | | | 6,680 | | | 7,151 | | |
| Other repossessed assets | | 202 | | | 353 | | | 154 | | | 46 | | | 246 | | |
| Total nonperforming assets | $ | 26,958 | | $ | 22,749 | | $ | 18,909 | | $ | 19,102 | | $ | 20,646 | | |
| | | | | | | |
| | | | | | | |
| ASSET QUALITY RATIOS | | | | | | |
| Nonperforming assets / total assets | | 0.82 | % | | 0.69 | % | | 0.70 | % | | 0.71 | % | | 0.74 | % | |
| Allowance / total loans/leases (1) | | 1.28 | % | | 1.22 | % | | 1.46 | % | | 1.46 | % | | 1.45 | % | |
| Allowance / nonperforming loans/leases (1) | | 144.85 | % | | 173.78 | % | | 223.42 | % | | 228.75 | % | | 223.33 | % | |
| | | | | | | |
| | | | | | | |
| (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 Year Ended | |
| | | | December 31, | | September 30, | | December 31, | | December 31, | | December 31, | |
| | SELECT FINANCIAL DATA - SUBSIDIARIES | | | 2016 | | | | 2016 | | | | 2015 | | | | 2016 | | | | 2015 | | |
| | | | (dollars in thousands) | |
| | | | | | | | | | | | | |
| | TOTAL ASSETS | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | Quad City Bank and Trust (1) | | $ | 1,395,785 | | | $ | 1,407,733 | | | $ | 1,336,572 | | | | | | |
| | m2 Lease Funds, LLC | | | 213,159 | | | | 208,080 | | | | 202,685 | | | | | | |
| | Cedar Rapids Bank and Trust | | | 913,056 | | | | 887,593 | | | | 866,872 | | | | | | |
| | Community State Bank - Ankeny | | | 600,076 | | | | 580,210 | | | N/A | | | | | |
| | Rockford Bank and Trust | | | 391,155 | | | | 393,192 | | | | 367,472 | | | | | | |
| | | | | | | | | | | | | |
| | TOTAL DEPOSITS | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | Quad City Bank and Trust (1) | | $ | 1,125,932 | | | $ | 1,110,512 | | | $ | 931,689 | | | | | | |
| | Cedar Rapids Bank and Trust | | | 747,785 | | | | 727,446 | | | | 680,674 | | | | | | |
| | Community State Bank - Ankeny | | | 513,588 | | | | 481,256 | | | N/A | | | | | |
| | Rockford Bank and Trust | | | 311,556 | | | | 294,193 | | | | 272,347 | | | | | | |
| | | | | | | | | | | | | |
| | TOTAL LOANS & LEASES | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | Quad City Bank and Trust (1) | | $ | 1,010,443 | | | $ | 994,628 | | | $ | 887,882 | | | | | | |
| | m2 Lease Funds, LLC | | | 211,045 | | | | 206,800 | | | | 201,119 | | | | | | |
| | Cedar Rapids Bank and Trust | | | 652,212 | | | | 634,929 | | | | 616,615 | | | | | | |
| | Community State Bank - Ankeny | | | 429,511 | | | | 419,498 | | | N/A | | | | | |
| | Rockford Bank and Trust | | | 313,321 | | | | 311,545 | | | | 293,526 | | | | | | |
| | | | | | | | | | | | | |
| | TOTAL LOANS & LEASES / TOTAL ASSETS | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | Quad City Bank and Trust (1) | | | 72 | % | | | 71 | % | | | 66 | % | | | | | |
| | Cedar Rapids Bank and Trust | | | 71 | % | | | 72 | % | | | 71 | % | | | | | |
| | Community State Bank - Ankeny | | | 72 | % | | | 72 | % | | N/A | | | | | |
| | Rockford Bank and Trust | | | 80 | % | | | 79 | % | | | 80 | % | | | | | |
| | | | | | | | | | | | | |
| | ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | Quad City Bank and Trust (1) | | | 1.33 | % | | | 1.30 | % | | | 1.35 | % | | | | | |
| | m2 Lease Funds, LLC | | | 1.78 | % | | | 1.69 | % | | | 1.87 | % | | | | | |
| | Cedar Rapids Bank and Trust | | | 1.67 | % | | | 1.69 | % | | | 1.61 | % | | | | | |
| | Community State Bank - Ankeny (2) | | | 0.34 | % | | | 0.07 | % | | N/A | | | | | |
| | Rockford Bank and Trust | | | 1.57 | % | | | 1.58 | % | | | 1.45 | % | | | | | |
| | | | | | | | | | | | | |
| | RETURN ON AVERAGE ASSETS | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | Quad City Bank and Trust (1) | | | 1.17 | % | | | 1.12 | % | | | 1.18 | % | | | 1.12 | % | | | 0.89 | % | |
| | Cedar Rapids Bank and Trust | | | 1.34 | % | | | 1.48 | % | | | 1.42 | % | | | 1.42 | % | | | 0.93 | % | |
| | Community State Bank - Ankeny (3) | | | 1.33 | % | | | 0.39 | % | | N/A | | | 1.10 | % | | N/A | |
| | Rockford Bank and Trust | | | 0.90 | % | | | 0.96 | % | | | 0.50 | % | | | 0.84 | % | | | 0.61 | % | |
| | | | | | | | | | | | | |
| | NET INTEREST MARGIN PERCENTAGE (4) | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | Quad City Bank and Trust (1) | | | 3.71 | % | | | 3.61 | % | | | 3.38 | % | | | 3.65 | % | | | 3.32 | % | |
| | Cedar Rapids Bank and Trust | | | 3.90 | % | | | 3.93 | % | | | 3.63 | % | | | 3.87 | % | | | 3.65 | % | |
| | Community State Bank - Ankeny | | | 6.00 | % | | | 4.99 | % | | N/A | | | 5.74 | % | | N/A | |
| | Rockford Bank and Trust | | | 3.35 | % | | | 3.50 | % | | | 3.43 | % | | | 3.47 | % | | | 3.41 | % | |
| | | | | | | | | | | | | |
| | ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET | | | | | | | | | | | |
| | INTEREST MARGIN, NET | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | Cedar Rapids Bank and Trust | | $ | 313 | | | $ | 230 | | | $ | 66 | | | $ | 673 | | | $ | 504 | | |
| | Community State Bank - Ankeny | | | 2,681 | | | | 473 | | | N/A | | | 3,154 | | | N/A | |
| | QCR Holdings, Inc. (5) | | | (34 | ) | | | (34 | ) | | | (34 | ) | | | (136 | ) | | | (137 | ) | |
| | | | | | | | | | | | | |
(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 | ) | Relates to the trust-preferred securities acquired as part of the Community National Bank acquisition in 2013. |
| | | | | | | | | | | | | |
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited) |
| | | | | | | | | | | | | | | | | |
| | | As of | | | | | | |
| | | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | | | | | | |
| GAAP TO NON-GAAP RECONCILIATIONS | | | 2016 | | | | 2016 | | | | 2016 | | | | 2016 | | | | 2015 | | | | | | | |
| | | (dollars in thousands, except per share data) | | | | | | |
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Stockholders' equity (GAAP) | | $ | 286,041 | | | $ | 280,857 | | | $ | 275,117 | | | $ | 235,143 | | | $ | 225,886 | | | | | | | |
| Less: Intangible assets | | | 22,522 | | | | 22,755 | | | | 4,595 | | | | 4,645 | | | | 4,694 | | | | | | | |
| Tangible common equity (non-GAAP) | | $ | 263,519 | | | $ | 258,102 | | | $ | 270,522 | | | $ | 230,498 | | | $ | 221,192 | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Total assets (GAAP) | | $ | 3,301,944 | | | $ | 3,280,986 | | | $ | 2,683,434 | | | $ | 2,640,673 | | | $ | 2,593,198 | | | | | | | |
| Less: Intangible assets | | | 22,522 | | | | 22,755 | | | | 4,595 | | | | 4,645 | | | | 4,694 | | | | | | | |
| Tangible assets (non-GAAP) | | $ | 3,279,422 | | | $ | 3,258,231 | | | $ | 2,678,839 | | | $ | 2,636,028 | | | $ | 2,588,504 | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Tangible common equity to tangible assets ratio (non-GAAP) | | | 8.04 | % | | | 7.92 | % | | | 10.10 | % | | | 8.74 | % | | | 8.55 | % | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | For the Quarter Ended | | For the Year Ended | | |
| | | December 31, | | September 30, | | June 30, | | March 31, | | December 31, | | December 31, | | December 31, | | |
| CORE NET INCOME (2) | | | 2016 | | | | 2016 | | | | 2016 | | | | 2016 | | | | 2015 | | | | 2016 | | | | 2015 | | | |
| | | | | | | | | | | | | | | | | |
| Net income (GAAP) | | $ | 8,529 | | | $ | 6,108 | | | $ | 6,676 | | | $ | 6,373 | | | $ | 6,785 | | | $ | 27,687 | | | $ | 16,928 | | | |
| | | | | | | | | | | | | | | | | |
| Less nonrecurring items (post-tax) (3): | | | | | | | | | | | | | | | | |
| Income: | | | | | | | | | | | | | | | | |
| Securities gains, net | | $ | (23 | ) | | $ | 2,764 | | | $ | 12 | | | $ | 233 | | | $ | 211 | | | $ | 2,985 | | | $ | 519 | | | |
| Lawsuit award | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 252 | | | |
| Total nonrecurring income (non-GAAP) | | $ | (23 | ) | | $ | 2,764 | | | $ | 12 | | | $ | 233 | | | $ | 211 | | | $ | 2,985 | | | $ | 771 | | | |
| | | | | | | | | | | | | | | | | |
| Expense: | | | | | | | | | | | | | | | | |
| Losses on debt extinguishment, net | | $ | 232 | | | $ | 2,689 | | | $ | - | | | $ | 54 | | | $ | 189 | | | $ | 2,975 | | | $ | 4,671 | | | |
| Acquisition costs (4) | | | 26 | | | | 1,506 | | | | 231 | | | | - | | | | - | | | | 1,763 | | | | - | | | |
| Other non-recurring expenses | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 513 | | | |
| Accrual adjustments | | | - | | | | - | | | | - | | | | - | | | | (487 | ) | | | - | | | | (487 | ) | | |
| Total nonrecurring expense (non-GAAP) | | $ | 258 | | | $ | 4,195 | | | $ | 231 | | | $ | 54 | | | $ | (298 | ) | | $ | 4,738 | | | $ | 4,697 | | | |
| | | | | | | | | | | | | | | | | |
| Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (2) | | $ | 8,810 | | | $ | 7,539 | | | $ | 6,895 | | | $ | 6,194 | | | $ | 6,276 | | | $ | 29,440 | | | $ | 20,854 | | | |
| | | | | | | | | | | | | | | | | |
| CORE EARNINGS PER COMMON SHARE (2) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (from above) | | $ | 8,810 | | | $ | 7,539 | | | $ | 6,895 | | | $ | 6,194 | | | $ | 6,276 | | | $ | 29,440 | | | $ | 20,854 | | | |
| | | | | | | | | | | | | | | | | |
| Weighted average common shares outstanding | | | 13,087,592 | | | | 13,066,777 | | | | 12,335,077 | | | | 11,793,620 | | | | 11,744,495 | | | | 12,570,767 | | | | 10,345,286 | | | |
| Weighted average common and common equivalent shares outstanding | | 13,323,883 | | | | 13,269,703 | | | | 12,516,474 | | | | 11,953,949 | | | | 11,926,038 | | | | 12,766,003 | | | | 10,499,841 | | | |
| | | | | | | | | | | | | | | | | |
| Core earnings per common share (non-GAAP): | | | | | | | | | | | | | | | | |
| Basic | | $ | 0.67 | | | $ | 0.58 | | | $ | 0.56 | | | $ | 0.53 | | | $ | 0.53 | | | $ | 2.34 | | | $ | 2.02 | | | |
| Diluted | | $ | 0.66 | | | $ | 0.57 | | | $ | 0.55 | | | $ | 0.52 | | | $ | 0.53 | | | $ | 2.31 | | | $ | 1.99 | | | |
| | | | | | | | | | | | | | | | | |
| CORE RETURN ON AVERAGE ASSETS (2) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (from above) | | $ | 8,810 | | | $ | 7,539 | | | $ | 6,895 | | | $ | 6,194 | | | $ | 6,276 | | | $ | 29,440 | | | $ | 20,854 | | | |
| | | | | | | | | | | | | | | | | |
| Average Assets | | $ | 3,277,814 | | | $ | 2,865,947 | | | $ | 2,640,678 | | | $ | 2,602,350 | | | $ | 2,611,276 | | | $ | 2,846,697 | | | $ | 2,549,921 | | | |
| | | | | | | | | | | | | | | | | |
| Core return on average assets (annualized) (non-GAAP) | | | 1.08 | % | | | 1.05 | % | | | 1.04 | % | | | 0.95 | % | | | 0.96 | % | | | 1.03 | % | | | 0.82 | % | | |
| | | | | | | | | | | | | | | | | |
| NET INTEREST MARGIN (TEY) (6) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net interest income (GAAP) | | $ | 29,280 | | | $ | 23,631 | | | $ | 21,009 | | | $ | 20,597 | | | $ | 19,886 | | | $ | 94,517 | | | $ | 76,296 | | | |
| | | | | | | | | | | | | | | | | |
| Plus: Tax equivalent adjustment (5) | | | 1,727 | | | | 1,587 | | | | 1,364 | | | | 1,342 | | | | 1,321 | | | | 6,021 | | | | 4,881 | | | |
| | | | | | | | | | | | | | | | | |
| Net interest income - tax equivalent (Non-GAAP) | | $ | 31,007 | | | $ | 25,218 | | | $ | 22,373 | | | $ | 21,939 | | | $ | 21,207 | | | $ | 100,538 | | | $ | 81,177 | | | |
| | | | | | | | | | | | | | | | | |
| Average earning assets | | $ | 3,069,222 | | | $ | 2,703,162 | | | $ | 2,484,721 | | | $ | 2,456,328 | | | $ | 2,465,497 | | | $ | 2,678,359 | | | $ | 2,406,213 | | | |
| | | | | | | | | | | | | | | | | |
| Net interest margin (GAAP) | | | 3.80 | % | | | 3.48 | % | | | 3.40 | % | | | 3.37 | % | | | 3.20 | % | | | 3.53 | % | | | 3.17 | % | | |
| Net interest margin (TEY) (Non-GAAP) | | | 4.02 | % | | | 3.71 | % | | | 3.62 | % | | | 3.59 | % | | | 3.41 | % | | | 3.75 | % | | | 3.37 | % | | |
| | | | | | | | | | | | | | | | | |
| EFFICIENCY RATIO (7) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Noninterest expense (GAAP) | | $ | 22,308 | | | $ | 24,480 | | | $ | 17,744 | | | $ | 16,954 | | | $ | 15,873 | | | $ | 81,486 | | | $ | 73,191 | | | |
| | | | | | | | | | | | | | | | | |
| Net interest income (GAAP) | | $ | 29,280 | | | $ | 23,631 | | | $ | 21,009 | | | $ | 20,597 | | | $ | 19,886 | | | $ | 94,517 | | | $ | 76,296 | | | |
| Noninterest income (GAAP) | | | 7,029 | | | | 10,423 | | | | 6,762 | | | | 6,822 | | | | 6,212 | | | | 31,037 | | | | 24,363 | | | |
| Total income | | $ | 36,309 | | | $ | 34,054 | | | $ | 27,771 | | | $ | 27,419 | | | $ | 26,098 | | | $ | 125,554 | | | $ | 100,659 | | | |
| | | | | | | | | | | | | | | | | |
| Efficiency ratio (noninterest expense/total income) (Non-GAAP) | | | 61.44 | % | | | 71.89 | % | | | 63.89 | % | | | 61.83 | % | | | 60.82 | % | | | 64.90 | % | | | 72.71 | % | | |
| | | | | | | | | | | | | | | | | |
| (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. | | |
| (5) 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. | | |
| (6) Net interest margin (TEY) is a non-GAAP financial measure. The Company's management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. | |
| (7) Efficiency ratio is a non-GAAP measure. The Company's management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures. | | |
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Todd A. Gipple
Executive Vice President
Chief Operating Officer
Chief Financial Officer
(309) 743-7745
