PRESS RELEASE
Contact:
Todd A. Gipple
Executive Vice President
Chief Financial Officer
(309) 736-3580 - Work
(319) 381-3731 - Home
FOR IMMEDIATE RELEASE
May 15, 2001
Quad City Holdings, Inc.
Announces Third Quarter Earnings
Quad City Holdings, Inc. (Nasdaq SmallCap: QCHI) today announced earnings for
the third fiscal quarter ended March 31, 2001 of $623,000 or basic and diluted
earnings per share of $.28 and $.27, respectively. For the March 31, 2000
quarter, the Company reported earnings of $760,000 or basic and diluted earnings
per share of $.33 and $.32, respectively. Earnings for the nine months ended
March 31, 2001 were $1.6 million, or basic and diluted earnings per share of
$.72 and $.70, respectively, as compared to $2.1 million or basic and diluted
earnings per share of $.92 and $.90, respectively, for the same period one year
ago.
The reduction in earnings for both the quarter and nine months ended March 31,
2001, as compared to the same periods one year ago, was the result of several
factors. These factors included the opening of the Company's fourth full-service
banking facility on Utica Ridge Road in Davenport and a reduction in processing
volumes and profitability at Quad City Bancard.
The Company's total assets increased by $39.1 million or 11% to $406.7 million
at March 31, 2001 from $367.6 million at June 30, 2000. During the same period,
gross loans increased by $35.6 million or 15% to $277.5 million from $241.9
million at June 30, 2000. Total deposits increased 7% to $309.1 million at March
31, 2001 from $288.1 million at June 30, 2000. Stockholders' equity was $23.1
million at March 31, 2001 as compared to $20.1 million at June 30, 2000.
Net interest income for the three and nine months ended March 31, 2001 was $3.0
million and $8.8 million as compared to $2.7 million and $8.0 million,
respectively, for the same periods one year ago. For the three and nine month
periods ended March 31, 2001, net interest margin was 3.29% and 3.33%,
respectively, as compared to 3.45% and 3.48%, respectively, for the same periods
in 2000.
In April 2001, the Company announced plans to expand its banking operations to
the Cedar Rapids, Iowa market. Initially, the Cedar Rapids operation will
function as a branch of Quad City Bank & Trust Company subject to regulatory
approvals that are expected in May 2001. The Company has filed regulatory
applications to establish a separately chartered bank in the Cedar Rapids
market, to be called Cedar Rapids Bank and Trust Company. The Company expects to
transfer the branch operations into this new charter upon receiving regulatory
approval, likely in the fall of 2001. The Company plans to raise additional
equity capital in the amount of approximately $5 million, through a private
placement of common stock, during the summer of 2001 to help capitalize the new
bank.
"Clearly, Cedar Rapids is one of the strongest business markets in the State of
Iowa, yet the community currently lacks a locally managed community oriented
bank with a focus on commercial banking. With the talented group of local
bankers who will manage Cedar Rapids Bank and Trust Company, and their local
board of directors, we have the winning combination to capitalize on the
opportunity to fill this niche in Cedar Rapids." said Doug Hultquist, President
and Chief Executive Officer.
Todd Gipple, Executive Vice President and Chief Financial Officer added, "Cedar
Rapids Bank and Trust Company will utilize many of our established
administrative and support functions. This existing infrastructure will enable
us to efficiently provide support services and allow the Cedar Rapids team to
focus on rapid growth and providing the highest levels of customer service in
their market."
"In addition, leveraging these existing administrative and support resources
over the expanded banking operations should allow Cedar Rapids Bank and Trust
Company to become profitable much more quickly than the typical de novo bank.
Historically, de novo banks achieve profitability by the end of their third year
of operations. Quad City Bank and Trust Company became profitable on a monthly
basis in its sixteenth month of operations. We hope to meet or exceed these
results with the Cedar Rapids charter."
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.
As of
March 31, June 30, March 31,
2001 2000 2000
-----------------------------------------
(dollars in thousands, except
share data)
SELECTED BALANCE SHEET DATA
Total assets ...................... $ 406,711 $ 367,622 $ 349,352
Securities ........................ 54,761 56,129 61,593
Total loans ....................... 277,446 241,853 218,183
Allowance for loan losses ......... 4,084 3,617 3,303
Total deposits .................... 309,064 288,067 277,431
Total stockholders' equity ........ 23,079 20,071 20,136
Common shares outstanding ......... 2,265,420 2,283,920 2,325,416
Book value per common share ....... $ 10.19 $ 8.79 $ 8.66
Full time equivalent employees .... 166 157 146
CAPITAL RATIOS
Tier 1 leverage ................... 7.54% 8.06% 8.13%
Tier 1 risk-based capital ......... 9.78% 10.39% 11.40%
Total risk-based capital .......... 12.44% 13.47% 14.66%
For The
Quarter
Ended
March 31, June 30, March 31,
2001 2000 2000
--------------------------------
(dollars in thousands)
ANALYSIS OF LOAN DATA
Net charge-offs ............................ $ 36 $ 80 $ 124
As of
March 31, June 30, March 31,
2001 2000 2000
--------------------------------
Nonaccrual loans ........................... $ 1,161 $ 383 $ 1,216
Accruing loans past due 90 days or more .... 440 353 729
Total nonperforming assets ................. 1,601 736 1,945
Loan mix:
Commercial ................................. 195,071 167,683 147,842
Real estate ................................ 45,146 39,765 38,040
Installment and other consumer ............. 37,229 34,405 32,301
Total loans ................................ 277,446 241,853 218,183
For the Quarter For the Nine Months
Ended March 31, Ended March 31,
2001 2000 2001 2000
--------------------------------------------
(dollars in thousands, except per share data)
SELECTED INCOME STATEMENT DATA
Interest income ............................ $ 7,279 $ 5,953 $ 21,522 $ 17,688
Interest expense ........................... 4,313 3,300 12,756 9,732
Net interest income ........................ 2,966 2,653 8,766 7,956
Provision for loan losses .................. 148 85 668 657
Noninterest income ......................... 1,632 1,624 4,420 4,620
Noninterest expense ........................ 3,471 2,960 10,015 8,461
Income tax expense ......................... 356 472 876 1,323
Net income ................................. 623 760 1,627 2,135
Earnings per common share (basic) .......... $ 0.28 $ 0.33 $ 0.72 $ 0.92
Earnings per common share (diluted) ........ $ 0.27 $ 0.32 $ 0.70 $ 0.90
AVERAGE BALANCES
Assets ..................................... $400,379 $343,650 $384,571 $337,733
Deposits ................................... 309,251 274,599 299,233 259,410
Loans ...................................... 271,702 208,291 260,465 207,953
Stockholders' equity ....................... 22,444 19,726 21,433 19,241
KEY RATIOS
Return on average assets (annualized) ...... 0.62% 0.88% 0.56% 0.84%
Return on average common equity (annualized) 11.10% 15.41% 10.12% 14.79%
Net interest margin ........................ 3.29% 3.45% 3.33% 3.48%
Efficiency ratio ........................... 75.47% 68.92% 75.80% 66.98%
For the Quarter Ended For the Nine Months Ended
March 31, March 31,
2001 2000 2001 2000
-----------------------------------------------------
(dollars in thousands, except share data)
ANALYSIS OF NONINTEREST INCOME
Merchant credit card fees, net of processing costs $ 402 $ 653 $ 1,203 $ 1,836
Trust department fees ............................ 566 525 1,583 1,388
Deposit service fees ............................. 218 137 565 444
Gain on sales of loans, net ...................... 314 71 612 300
Securities gains (losses), net ................... -- 15 (23) 15
Other ............................................ 132 223 480 637
Total noninterest income ...................... 1,632 1,624 4,420 4,620
ANALYSIS OF NONINTEREST EXPENSE
Salaries and employee benefits ................... $ 2,105 $ 1,806 $ 5,841 $ 5,019
Professional and data processing fees ............ 267 230 860 655
Advertising and marketing ........................ 113 117 393 304
Occupancy and equipment expense .................. 489 376 1,407 1,177
Stationery and supplies .......................... 83 83 253 244
Postage and telephone ............................ 98 84 292 266
Other ............................................ 316 264 969 796
Total noninterest expenses .................... 3,471 2,960 10,015 8,461
WEIGHTED AVERAGE SHARES
Common shares outstanding (a) .................... 2,265,420 2,324,004 2,269,476 2,311,313
Incremental shares from assumed conversion:
Options ...................................... 45,692 59,474 47,335 65,698
Adjusted weighted average shares (b) ............. 2,311,112 2,383,478 2,316,811 2,377,011
<FN>
(a) Denominator for Basic Earnings Per Share
(b) Denominator for Diluted Earnings Per Share
</FN>