PRESS RELEASE
Contact:
Todd A. Gipple
Executive Vice President
Chief Financial Officer
(309) 736-3580 - Work
(319) 381-3731 - Home
FOR IMMEDIATE RELEASE
February 12, 2001
Quad City Holdings, Inc.
Announces Second Quarter Earnings
Quad City Holdings, Inc. (Nasdaq SmallCap: QCHI) today announced
earnings for the second fiscal quarter ended December 31, 2000 of $344,000 or
basic and diluted earnings per share of $.15 and $.15, respectively. For the
December 31, 1999 quarter, the Company reported earnings of $743,000 or basic
and diluted earnings per share of $.32 and $.31, respectively. Earnings for the
six months ended December 31, 2000 were $1.0 million, or basic and diluted
earnings per share of $.44 and $.43, respectively, as compared to $1.4 million
or basic and diluted earnings per share of $.60 and $.58, respectively, for the
same period one year ago.
The Company anticipated that a number of issues would result in a
reduction in December 31, 2000 quarterly earnings as compared to the same period
one year ago. The reduced earnings were due to increased overhead and one-time
costs associated with the opening of its subsidiary bank's fourth full service
banking facility, higher employee compensation costs resulting from the addition
of four senior officer positions during calendar 2000, and a reduction in
earnings of its merchant credit card processing subsidiary as a result of the
planned termination of its contract with a major independent sales organization.
While the addition of the new banking facility and the senior officer
positions negatively impacted earnings for the three and six months ended
December 31, 2000, management is confident that these additions will provide
significant long-term benefits to the Company.
The Company's bank subsidiary enjoyed improved core earnings for both
the three and six months ended December 31, 2000. Also impacting earnings were
legal costs at the Company's merchant credit card processing subsidiary
associated with their current litigation with PMT Services, Inc., an increased
loan loss provision due to growth in the loan portfolio and increased reserves
for a few specific commercial loans, and a higher cost of funds due to
competitive local market conditions.
The Company's total assets increased 7% to $394.5 million from June 30,
2000 to December 31, 2000. During the same period, gross loans increased 10% to
$265.6 million and total deposits increased 7% to $307.4 million. Stockholders'
equity was $21.8 million at December 31, 2000 as compared with $20.1 million at
June 30, 2000.
Net interest income for the three months and for the six months ended
December 31, 2000 was $2.9 million and $5.8 million as compared to $2.6 million
and $5.3 million for the same periods one year ago. Net interest margin was
3.36% for both the three and six month periods ended December 31, 2000, as
compared with 3.32% and 3.48%, respectively, for the same periods in 1999.
As mentioned above, on October 30, 2000 the Company opened its fourth
full service banking facility located at 5515 Utica Ridge Road, Davenport, Iowa.
The facility will allow the Company to better serve its Northeast Davenport and
Bettendorf customers while aggressively pursuing new relationships.
Quad City Holdings, Inc., headquartered in Moline, Illinois, is a bank
holding company which serves the Quad City area via its wholly owned subsidiary,
Quad City Bank and Trust Company, based in Bettendorf, Iowa. Quad City Bank and
Trust Company, which commenced operations in 1994, provides full-service
commercial and consumer banking, and trust and asset management services. The
company also engages in merchant credit card processing through its wholly owned
subsidiary, Quad City Bancard, Inc., based in Moline, Illinois.
This release may contain forward-looking statements. Forward looking
statements are identifiable by the inclusion of such qualifications as expects,
intends, believes, may, likely or other indications that the particular
statements are not based upon facts but are rather based upon the Company's
beliefs as of the date of this release. Actual events and results may differ
significantly from those described in such forward looking statements, due to
changes in the economy, interest rates or other factors. For additional
information about these factors, please review our filings with the Securities
and Exchange Commission.
QUAD CITY HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
As of
December 31, June 30, December 31,
2000 2000 1999
------------------------------------------
(dollars in thousands, except
share data)
SELECTED BALANCE SHEET DATA
Total assets ...................... $ 394,482 $ 367,622 $ 343,284
Securities ........................ 57,401 56,129 58,644
Total loans ....................... 265,618 241,853 211,376
Allowance for loan losses ......... 3,972 3,617 3,341
Total deposits .................... 307,422 288,067 271,767
Total stockholders' equity ........ 21,817 20,071 19,644
Common shares outstanding ......... 2,265,420 2,283,920 2,322,331
Book value per common share ....... $ 9.63 $ 8.79 $ 8.46
Full time equivalent employees .... 163 157 146
CAPITAL RATIOS
Tier 1 leverage ................... 7.61% 8.06% 8.06%
Tier 1 risk-based capital ......... 9.80% 10.39% 11.30%
Total risk-based capital .......... 12.64% 13.47% 14.68%
QUAD CITY HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
For the
Quarter
Ended
December 31, June 30, December 31,
2000 2000 1999
-----------------------------------
(dollars in thousands)
ANALYSIS OF LOAN DATA
Net charge-offs ............................ $ 149 $ 80 $ 42
As of
December 31, June 30, December 31,
2000 2000 1999
-----------------------------------
Nonaccrual loans ........................... $ 655 $ 383 $ 1,178
Accruing loans past due 90 days or more .... 1,197 353 200
Total nonperforming assets ................. 1,852 736 1,378
Loan mix:
Commercial ................................. 187,017 167,683 142,236
Real estate ................................ 41,132 39,765 35,205
Installment and other consumer ............. 37,469 34,405 33,935
Total loans ................................ 265,618 241,853 211,376
QUAD CITY HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
For the Quarter Ended For the Six Months Ended
December 31, December 31,
2000 1999 2000 1999
-----------------------------------------------
(dollars in thousands, except per share data)
SELECTED INCOME STATEMENT DATA
Interest income ............................ $ 7,265 $ 5,935 $ 14,243 $ 11,736
Interest expense ........................... 4,323 3,329 8,442 6,432
Net interest income ........................ 2,942 2,606 5,801 5,304
Provision for loan losses .................. 344 297 520 572
Noninterest income ......................... 1,415 1,624 2,787 2,996
Noninterest expense ........................ 3,466 2,728 6,544 5,501
Income tax expense ......................... 203 462 520 851
Net income ................................. 344 743 1,004 1,376
Earnings per common share (basic) .......... $ 0.15 $ 0.32 $ 0.44 $ 0.60
Earnings per common share (diluted) ........ $ 0.15 $ 0.31 $ 0.43 $ 0.58
AVERAGE BALANCES
Assets ..................................... $383,659 $337,229 $376,954 $331,935
Deposits ................................... 299,110 265,141 294,348 259,417
Loans ...................................... 261,683 211,160 254,308 206,766
Earnings assets ............................ 351,066 313,545 345,835 308,571
Stockholders' equity ....................... 21,338 19,279 20,911 19,021
KEY RATIOS
Return on average assets (annualized) ...... 0.36% 0.88% 0.53% 0.83%
Return on average common equity (annualized) 6.45% 15.42% 9.60% 14.47%
Net interest margin ........................ 3.36% 3.32% 3.36% 3.48%
Efficiency ratio ........................... 79.46% 64.49% 75.97% 66.28%
QUAD CITY HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
For the Quarter Ended For the Six Months Ended
December 31, December 31,
-------------------------------------------------
2000 1999 2000 1999
-------------------------------------------------
(dollars in thousands, except share data)
ANALYSIS OF NONINTEREST INCOME
Merchant credit card fees, net of processing costs $ 428 $ 646 $ 801 $ 1,183
Trust department fees ............................ 512 463 1,017 863
Deposit service fees ............................. 169 151 347 307
Gain on sales of loans, net ...................... 171 127 298 229
Other ............................................ 135 237 325 414
Total noninterest income ...................... 1,415 1,624 2,788 2,996
ANALYSIS OF NONINTEREST EXPENSE
Salaries and employee benefits ................... $ 1,954 $ 1,585 $ 3,736 $ 3,213
Professional and data processing fees ............ 328 204 592 425
Advertising and marketing ........................ 153 104 280 187
Occupancy and equipment expense .................. 498 407 918 801
Stationery and supplies .......................... 98 79 171 161
Postage and telephone ............................ 100 100 194 182
Other ............................................ 335 249 653 532
Total noninterest expenses .................... 3,466 2,728 6,544 5,501
WEIGHTED AVERAGE SHARES
Common shares outstanding (a) .................... 2,267,659 2,310,643 2,271,460 2,305,037
Incremental shares from assumed conversion:
Options ...................................... 39,207 78,050 48,157 79,871
Adjusted weighted average shares (b) ............. 2,306,866 2,388,693 2,319,617 2,384,908
<FN>
(a) Denominator for Basic Earnings Per Share.
(b) Denominator for Diluted Earnings Per Share.
</FN>