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Section 1: 8-K (8-K)

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


 

FORM 8-K

 


 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event Reported): April 24, 2019

 

QCR Holdings, Inc.
(Exact Name of Registrant as Specified in Charter)

 

Delaware

 

0-22208

 

42-1397595

(State or Other Jurisdiction of
Incorporation)

 

(Commission File Number)

 

(I.R.S. Employer Identification
Number)

 

3551 Seventh Street, Moline, Illinois 61265

(Address of Principal Executive Offices) (Zip Code)

 

(309) 736-3584
(Registrant’s telephone number, including area code)

 

N/A
(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o          Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o          Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o          Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o          Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

 

 


 

Item 2.02. Results of Operations and Financial Condition.

 

On April 24, 2019, QCR Holdings, Inc.  issued a press release disclosing financial results for the quarter ended March 31, 2019. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

The information in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by QCR Holdings, Inc. for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as expressly set forth by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit
Number

 

Description

 

 

 

99.1

 

Press Release of registrant dated April 24, 2019, containing financial information for the quarter ended March 31, 2019.

 

2


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

QCR Holdings, Inc.

 

 

 

 

 

 

Date: April 24, 2019

By:

/s/ Todd A. Gipple

 

 

Todd A. Gipple

 

 

Executive Vice President, Chief Operating Officer and Chief Financial Officer

 

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Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

 

PRESS RELEASE

 

FOR IMMEDIATE RELEASE

 

QCR Holdings, Inc. Announces First Quarter Earnings and Surpasses $5 Billion in Assets

 

First Quarter 2019 Highlights

 

·                  Net income of $12.9 million, or $0.81 per diluted share

·                  Adjusted net income (non-GAAP) of $13.0 million, or $0.82 per diluted share

·                  Annualized loan and lease growth of 7.1% for the quarter

·                  Annualized deposit growth of 21.8% for the quarter

·                  Noninterest income of $12.0 million for the quarter

·                  Nonperforming assets down $1.6 million, or 5.6% from the prior quarter

 

Moline, IL, April 24, 2019 — QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced net income of $12.9 million and diluted earnings per share (“EPS”) of $0.81 for the first quarter of 2019, compared to net income of $13.3 million and diluted EPS of $0.84 for the fourth quarter of 2018. The first quarter results included $0.1 million of acquisition and post-acquisition compensation, transition and integration costs (after-tax), compared to $1.2 million of similar costs in the fourth quarter of 2018. Excluding these expenses, the Company reported adjusted net income (non-GAAP) of $13.0 million and adjusted diluted EPS of $0.82 for the first quarter of 2019, compared to adjusted net income (non-GAAP) of $14.5 million and adjusted diluted EPS of $0.91 for the fourth quarter of 2018. For the first quarter of 2018, net income and diluted EPS were $10.6 million and $0.74, respectively, and adjusted net income (non-GAAP) and adjusted diluted EPS were $10.6 million and $0.75, respectively.

 

“We are generally pleased with  our start to 2019 and during the quarter surpassed $5 billion in assets, a significant milestone for the Company,” commented Douglas M. Hultquist, President and Chief Executive Officer. “We recorded another solid quarter of net income, driven by organic loan and deposit growth, strong fee income and excellent credit quality. Our ongoing focus on gathering core deposits at each of the charters led to a 22% annualized increase for the quarter, which laid the foundation for continued balance sheet growth. The strong growth in deposits also created some excess liquidity during the quarter, which when combined with the ongoing flattening of the yield curve, resulted in compression in our net interest margin. Although we saw a decrease in our net interest income, given our robust loan pipeline, we believe we are well positioned to drive strong returns throughout 2019.”

 

Annualized Loan and Lease Growth of 7.1%

 

During the first quarter of 2019, the Company’s total assets increased $117.0 million to a total of $5.1 billion, while total loans and leases grew $66.7 million, or 1.8%, compared to the fourth quarter of 2018. Loan and lease growth was funded by an increase in core deposits. Core deposits (excluding brokered deposits) increased $175.1 million, or 4.7% on a linked quarter basis. At quarter-end, the percentage of wholesale funds to total assets was 11.9%, which is a meaningful decline from 13.8% in the fourth quarter. Additionally, at quarter-end the percentage of gross loans and leases to total assets stayed relatively flat on a linked quarter basis at 75%.

 

“Despite the normal seasonal impact, our loan growth for the quarter was driven by healthy loan production with ongoing strength in commercial and industrial and commercial real estate construction loans,” added Mr. Hultquist. “We also experienced a more normalized level of payoffs, which were down significantly from the fourth quarter’s elevated levels. Our loan and lease pipeline remains very strong, giving us confidence that we are on track to achieve organic loan growth for the full year of between 8% and 10%.”

 

Net Interest Income of $36.9 million

 

Net interest income for the first quarter of 2019 totaled $36.9 million, compared to $39.6 million for the fourth quarter of 2018 and $32.4 million for the first quarter of 2018. While average interest earning assets increased $99.3 million, or 2.2% on a linked quarter basis, the decrease in net interest income was due to a 23 basis point decrease in reported net interest margin. Acquisition-related net accretion totaled $1.1 million (pre-tax) for the first quarter of 2019, compared to $2.6 million in the fourth quarter of 2018 and $0.7 million for the first quarter of 2018. Adjusted net interest income (non-GAAP) was $37.6 million for the first quarter of 2019, compared to $38.7 million for the fourth quarter of 2018 and $33.1 million for the first quarter of 2018.

 

In the first quarter, reported net interest margin was 3.25%, and on a tax-equivalent yield basis, net interest margin was 3.40%. This represented a decrease in both net interest margin and tax-equivalent net interest margin from the fourth quarter of 23 basis points. Net interest margin, excluding acquisition-related net accretion was 3.31% in the first quarter, a decline of 9 basis points from the fourth quarter of 2018. This decline in adjusted net interest margin was due to a combination of factors, including increases in the Company’s cost of funds (due to both mix and rate), excess liquidity due to the strong deposit growth in the quarter and the impact of the issuance of  $65 million of subordinated debt during the first quarter.

 


 

 

 

For the Quarter Ended

 

 

 

Mar. 31,

 

Dec. 31,

 

Mar. 31,

 

 

 

2019

 

2018

 

2018

 

NIM

 

3.25

%

3.48

%

3.50

%

NIM (TEY)(non-GAAP)(1)

 

3.40

%

3.63

%

3.64

%

Adjusted NIM (TEY)(non-GAAP)(1)

 

3.31

%

3.40

%

3.57

%

 


(1)         See GAAP to non-GAAP reconciliations.

 

“Competition for new deposits remains strong and as a result, our overall cost of funds increased by 17 basis points, excluding acquisition amortization,” stated Todd A. Gipple, Executive Vice President, Chief Operating Officer and Chief Financial Officer. “Excluding the impact of acquisition-related accretion, our adjusted loan yields on a tax-equivalent basis increased by 8 basis points.  Furthermore, excluding the impact of the excess liquidity and the additional interest expense incurred with the subordinated debt, adjusted net interest margin declined approximately 3 basis points during the first quarter.”

 

Noninterest Income of $12.0 million

 

Noninterest income for the first quarter of 2019 totaled $12.0 million, compared to $15.3 million for the fourth quarter of 2018. The decrease was primarily due to $3.8 million in lower swap fee income coming off a very strong fourth quarter, partially offset by a $0.4 million increase in wealth management revenue. Wealth management revenue was $4.2 million for the quarter, a 9.2% increase from the fourth quarter of 2018. Noninterest income increased 40.4% when compared to the first quarter of 2018.

 

“We continued to see strong production from our Specialty Finance Group, which led to $3.2 million in swap fee income during the quarter, and when annualized is at the high end of our full year target of $8 to $12 million,” added Mr. Gipple. “Additionally, we are very pleased with the 9.2% increase in our wealth management revenue, which was driven by organic growth in assets under management across our legacy charters.”

 

Noninterest Expenses of $32.4 million

 

Noninterest expenses for the first quarter of 2019 totaled $32.4 million, compared to $36.4 million and $25.9 million for the fourth quarter of 2018 and first quarter of 2018, respectively. Excluding post-acquisition and other one-time costs, our noninterest expenses would have totaled $32.1 million. The linked quarter decrease was primarily due to a combination of factors, including a $2.2 million decrease in net costs of operations of other real estate and a $0.8 million decrease in professional and data processing fees, partially offset by a $1.1 million increase in salaries and employee benefits due to annual merit increases, additions to staff and lower deferred costs on loans and leases.

 

Asset Quality Improvement

 

Nonperforming assets (“NPAs”) totaled $26.4 million, a decrease of $1.6 million from the fourth quarter of 2018. The lower NPAs resulted in the ratio of NPAs to total assets improving to 0.52% at March 31, 2019, compared to 0.56% at December 31, 2018 and 0.77% at March 31, 2018.

 

The Company’s provision for loan and lease losses totaled $2.1 million for the first quarter of 2019, which was up $0.5 million from the prior quarter and down $0.4 million compared to the first quarter of 2018. The linked quarter increase in the provision for loan and lease losses was primarily due to a lower than normal provision in the fourth quarter of 2018 as a result of a more favorable outcome than expected on a large credit that was partially charged off. As of March 31, 2019, the Company’s allowance to total loans and leases was 1.08%, which was up slightly from 1.07% at December 31, 2018 and down from 1.20% at March 31, 2018.

 

In accordance with generally accepted accounting principles for acquisition accounting, the loans acquired through past acquisitions were recorded at market value; therefore, there was no allowance associated with the acquired loans at the acquisition date. Management continues to evaluate the allowance needed on the acquired loans factoring in the net remaining discount ($10.4 million at March 31, 2019).

 

Strong Capital Levels

 

As of March 31, 2019, the Company’s total risk-based capital ratio was 12.22%, the common equity Tier 1 ratio was 8.98%, and the tangible common equity to tangible assets ratio was 7.92%. By comparison, these respective ratios were 10.69%, 8.89% and 7.78% as of

 

2


 

December 31, 2018. The increase in capital ratios from December 31, 2018 to March 31, 2019 was primarily the result of net income and the issuance of $63.4 million in subordinated notes (net of issuance costs) during the quarter.

 

Continued Focus on Seven Key Initiatives

 

The Company continues to focus on the following long-term initiatives in an effort to improve profitability and drive increased shareholder value:

 

·                  Strong organic loan and lease growth in order to maintain loans and leases to total assets ratio in the range of 73% - 78%

·                  Grow core deposits to maintain reliance on wholesale funding at less than 15% of assets

·                  Generate gains on sale of government guaranteed loans, and fee income on interest rate swaps, as a significant and consistent component of core revenue

·                  Grow wealth management net 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 industry to further boost return on average assets, improve efficiency ratio, and increase EPS

 

Conference Call Details

 

The Company will host an earnings call/webcast tomorrow, April 25, 2019, at 10:00 a.m. central time. Dial-in information for the call is toll-free 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be  available for digital replay through May 9, 2019. The replay access information is toll-free 877-344-7529 (international 412-317-0088); access code 10130063. A webcast of the teleconference can be accessed at the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

 

About Us

 

QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, Springfield and Rockford communities through its wholly owned subsidiary banks which provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, and Rockford Bank & Trust Company, based in Rockford, Illinois, commenced operations in 2005. In 2018, the Company acquired the Bates Companies, a wealth management firm. 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. In July 2018, QCR Holdings completed a merger with Springfield Bancshares, Inc., the holding company of Springfield First Community Bank of Springfield, Missouri. With this addition of Springfield First Community Bank, the Company has 27 locations in Illinois, Iowa, Wisconsin and Missouri. As of March 31, 2019, QCR Holdings had approximately $5.1 billion in assets, $3.8 billion in loans and $4.2 billion in deposits. For additional information, please visit our website at www.qcrh.com.

 

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, state, 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; (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, 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 Securities and Exchange Commission.

 

3


 

Contacts:

 

Todd A. Gipple

Executive Vice President

Chief Operating Officer

Chief Financial Officer

(309) 743-7745

[email protected]

 

Christopher J. Lindell

Executive Vice President

Corporate Communications

(319) 743-7006

[email protected]

 

4


 

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

 

 

 

As of

 

 

 

March 31

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

 

2019

 

2018

 

2018

 

2018

 

2018

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

76,527

 

$

85,523

 

$

73,407

 

$

69,069

 

$

61,846

 

Federal funds sold and interest-bearing deposits

 

216,032

 

159,596

 

129,660

 

51,667

 

59,557

 

Securities

 

655,749

 

662,969

 

650,745

 

657,997

 

640,906

 

Net loans/leases

 

3,758,268

 

3,692,907

 

3,610,309

 

3,077,247

 

3,018,370

 

Intangibles

 

16,918

 

17,450

 

16,137

 

8,470

 

8,774

 

Goodwill

 

77,872

 

77,832

 

73,618

 

28,091

 

28,334

 

Other assets

 

265,296

 

253,433

 

238,856

 

214,342

 

208,527

 

Total assets

 

$

5,066,662

 

$

4,949,710

 

$

4,792,732

 

$

4,106,883

 

$

4,026,314

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits

 

$

4,194,220

 

$

3,977,031

 

$

3,788,277

 

$

3,298,276

 

$

3,280,001

 

Total borrowings

 

282,994

 

404,968

 

483,635

 

380,392

 

334,802

 

Other liabilities

 

101,041

 

94,573

 

63,433

 

58,627

 

51,083

 

Total stockholders’ equity

 

488,407

 

473,138

 

457,387

 

369,588

 

360,428

 

Total liabilities and stockholders’ equity

 

$

5,066,662

 

$

4,949,710

 

$

4,792,732

 

$

4,106,883

 

$

4,026,314

 

 

 

 

 

 

 

 

 

 

 

 

 

ANALYSIS OF LOAN PORTFOLIO

 

 

 

 

 

 

 

 

 

 

 

Loan/lease mix:

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans

 

$

1,479,247

 

$

1,429,410

 

$

1,380,543

 

$

1,273,000

 

$

1,201,086

 

Commercial real estate loans

 

1,790,845

 

1,766,111

 

1,727,326

 

1,349,319

 

1,357,703

 

Direct financing leases

 

108,543

 

117,969

 

126,752

 

133,197

 

137,615

 

Residential real estate loans

 

288,502

 

290,759

 

309,288

 

257,434

 

254,484

 

Installment and other consumer loans

 

123,087

 

119,381

 

100,191

 

92,952

 

95,912

 

Deferred loan/lease origination costs, net of fees

 

9,208

 

9,124

 

9,286

 

8,890

 

8,103

 

Total loans/leases

 

$

3,799,432

 

$

3,732,754

 

$

3,653,386

 

$

3,114,792

 

$

3,054,903

 

Less allowance for estimated losses on loans/leases

 

41,164

 

39,847

 

43,077

 

37,545

 

36,533

 

Net loans/leases

 

$

3,758,268

 

$

3,692,907

 

$

3,610,309

 

$

3,077,247

 

$

3,018,370

 

 

 

 

 

 

 

 

 

 

 

 

 

ANALYSIS OF SECURITIES PORTFOLIO

 

 

 

 

 

 

 

 

 

 

 

Securities mix:

 

 

 

 

 

 

 

 

 

 

 

U.S. government sponsored agency securities

 

$

35,843

 

$

36,411

 

$

36,492

 

$

35,667

 

$

36,868

 

Municipal securities

 

450,376

 

459,409

 

453,275

 

458,510

 

438,736

 

Residential mortgage-backed and related securities

 

161,692

 

159,249

 

155,733

 

158,534

 

157,333

 

Other securities

 

7,838

 

7,900

 

5,245

 

5,286

 

7,969

 

Total securities

 

$

655,749

 

$

662,969

 

$

650,745

 

$

657,997

 

$

640,906

 

 

 

 

 

 

 

 

 

 

 

 

 

ANALYSIS OF DEPOSITS

 

 

 

 

 

 

 

 

 

 

 

Deposit mix:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$

821,599

 

$

791,101

 

$

802,090

 

$

746,822

 

$

784,815

 

Interest-bearing demand deposits

 

2,334,474

 

2,204,206

 

2,094,814

 

1,865,382

 

1,789,019

 

Time deposits

 

719,286

 

704,903

 

615,323

 

519,999

 

496,644

 

Brokered deposits

 

318,861

 

276,821

 

276,050

 

166,073

 

209,523

 

Total deposits

 

$

4,194,220

 

$

3,977,031

 

$

3,788,277

 

$

3,298,276

 

$

3,280,001

 

 

 

 

 

 

 

 

 

 

 

 

 

ANALYSIS OF BORROWINGS

 

 

 

 

 

 

 

 

 

 

 

Borrowings mix:

 

 

 

 

 

 

 

 

 

 

 

Term FHLB advances

 

$

66,380

 

$

76,327

 

$

63,399

 

$

46,600

 

$

56,600

 

Overnight FHLB advances (1)

 

59,800

 

190,165

 

295,730

 

207,500

 

159,745

 

Wholesale structured repurchase agreements

 

35,000

 

35,000

 

35,000

 

35,000

 

35,000

 

Customer repurchase agreements

 

3,056

 

2,084

 

3,049

 

2,186

 

3,820

 

Federal funds purchased

 

12,830

 

26,690

 

8,670

 

15,400

 

13,040

 

Subordinated notes

 

68,215

 

4,782

 

 

 

 

Junior subordinated debentures

 

37,713

 

37,670

 

37,626

 

37,581

 

37,534

 

Other borrowings

 

 

32,250

 

40,161

 

36,125

 

29,063

 

Total borrowings

 

$

282,994

 

$

404,968

 

$

483,635

 

$

380,392

 

$

334,802

 

 


(1)         At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 2.62%.

 

5


 

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

 

 

 

For the Quarter Ended

 

 

 

March 31

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

 

2019

 

2018

 

2018

 

2018

 

2018

 

 

 

(dollars in thousands, except per share data)

 

INCOME STATEMENT

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

52,102

 

$

52,703

 

$

49,831

 

$

40,799

 

$

39,546

 

Interest expense

 

15,194

 

13,110

 

11,517

 

8,714

 

7,143

 

Net interest income

 

36,908

 

39,593

 

38,314

 

32,085

 

32,403

 

Provision for loan/lease losses

 

2,134

 

1,611

 

6,206

 

2,301

 

2,540

 

Net interest income after provision for loan/lease losses

 

$

34,774

 

$

37,982

 

$

32,108

 

$

29,784

 

$

29,863

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust department fees

 

$

2,493

 

$

2,216

 

$

2,196

 

$

2,058

 

$

2,237

 

Investment advisory and management fees

 

1,736

 

1,657

 

1,059

 

1,058

 

952

 

Deposit service fees

 

1,554

 

1,623

 

1,656

 

1,610

 

1,531

 

Gain on sales of residential real estate loans, net

 

369

 

361

 

337

 

102

 

101

 

Gain on sales of government guaranteed portions of loans, net

 

31

 

 

46

 

 

358

 

Swap fee income

 

3,198

 

7,069

 

1,110

 

1,649

 

959

 

Securities gains (losses), net

 

 

 

 

 

 

Earnings on bank-owned life insurance

 

540

 

341

 

474

 

399

 

418

 

Debit card fees

 

792

 

807

 

846

 

844

 

766

 

Correspondent banking fees

 

216

 

179

 

195

 

213

 

265

 

Other

 

1,064

 

1,026

 

890

 

979

 

954

 

Total noninterest income

 

$

11,993

 

$

15,279

 

$

8,809

 

$

8,912

 

$

8,541

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

20,879

 

$

19,779

 

$

17,433

 

$

15,804

 

$

15,978

 

Occupancy and equipment expense

 

3,694

 

3,367

 

3,318

 

3,133

 

3,066

 

Professional and data processing fees

 

2,750

 

3,577

 

2,396

 

2,771

 

2,708

 

Acquisition costs

 

 

(4

)

1,292

 

414

 

93

 

Post-acquisition compensation, transition and integration costs

 

134

 

1,427

 

494

 

165

 

 

FDIC insurance, other insurance and regulatory fees

 

964

 

1,065

 

933

 

840

 

756

 

Loan/lease expense

 

214

 

624

 

369

 

260

 

291

 

Net cost and gains/losses on operations of other real estate

 

298

 

2,477

 

(50

)

(70

)

132

 

Advertising and marketing

 

785

 

1,122

 

984

 

753

 

693

 

Bank service charges

 

483

 

469

 

462

 

466

 

441

 

Correspondent banking expense

 

204

 

207

 

205

 

204

 

205

 

CDI amortization

 

532

 

540

 

542

 

305

 

305

 

Other

 

1,498

 

1,760

 

2,122

 

1,325

 

1,195

 

Total noninterest expense

 

$

32,435

 

$

36,410

 

$

30,500

 

$

26,370

 

$

25,863

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before taxes

 

$

14,332

 

$

16,851

 

$

10,417

 

$

12,326

 

$

12,541

 

Federal and state income tax expense

 

1,414

 

3,535

 

1,608

 

1,881

 

1,991

 

Net income

 

$

12,918

 

$

13,316

 

$

8,809

 

$

10,445

 

$

10,550

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

$

0.82

 

$

0.85

 

$

0.56

 

$

0.75

 

$

0.76

 

Diluted EPS

 

$

0.81

 

$

0.84

 

$

0.55

 

$

0.73

 

$

0.74

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

15,693,345

 

15,641,401

 

15,625,123

 

13,919,565

 

13,888,661

 

Weighted average common and common equivalent shares outstanding

 

15,922,940

 

15,898,591

 

15,922,324

 

14,232,423

 

14,205,584

 

 

6


 

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

 

 

 

For the Quarter Ended

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

 

2019

 

2018

 

2018

 

2018

 

2018

 

 

 

(dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

15,755,442

 

15,718,208

 

15,673,760

 

13,973,940

 

13,936,957

 

Book value per common share (1)

 

$

31.00

 

$

30.10

 

$

29.18

 

$

26.45

 

$

25.86

 

Tangible book value per common share (2)

 

$

24.98

 

$

24.04

 

$

23.46

 

$

23.83

 

$

23.20

 

Closing stock price

 

$

33.92

 

$

32.09

 

$

40.85

 

$

47.45

 

$

44.85

 

Market capitalization

 

$

534,425

 

$

504,397

 

$

640,273

 

$

663,063

 

$

625,073

 

Market price / book value

 

109.42

%

106.61

%

139.98

%

179.41

%

173.43

%

Market price / tangible book value

 

135.77

%

133.49

%

174.16

%

199.10

%

193.33

%

Earnings per common share (basic) LTM (3)

 

$

2.99

 

$

2.92

 

$

2.79

 

$

2.83

 

$

2.74

 

Price earnings ratio LTM (3)

 

11.34x

 

10.98x

 

14.64x

 

16.77x

 

16.37x

 

TCE / TA (4)

 

7.92

%

7.78

%

7.82

%

8.18

%

8.10

%

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

473,138

 

$

457,387

 

$

369,588

 

$

360,428

 

$

353,287

 

Net income

 

12,918

 

13,316

 

8,809

 

10,445

 

10,550

 

Other comprehensive income (loss), net of tax

 

2,343

 

1,943

 

(612

)

(1,335

)

(3,201

)

Common stock cash dividends declared

 

(942

)

(939

)

(938

)

(836

)

(834

)

Proceeds from issuance of 1,689,561 shares of common stock, net of costs, as a result of the acquisition of Springfield First Community Bank

 

 

 

80,063

 

 

 

Proceeds from issuance of 23,501 shares of common stock, net of costs, as a result of the acquisition of Bates Companies

 

 

1,000

 

 

 

 

Other (5)

 

950

 

431

 

477

 

886

 

626

 

Ending balance

 

$

488,407

 

$

473,138

 

$

457,387

 

$

369,588

 

$

360,428

 

 

 

 

 

 

 

 

 

 

 

 

 

REGULATORY CAPITAL RATIOS (6):

 

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

12.22

%

10.69

%

10.87

%

11.23

%

11.25

%

Tier 1 risk-based capital ratio

 

9.84

%

9.77

%

9.83

%

10.19

%

10.21

%

Tier 1 leverage capital ratio

 

8.87

%

8.87

%

8.87

%

9.22

%

9.08

%

Common equity tier 1 ratio

 

8.98

%

8.89

%

8.92

%

9.16

%

9.14

%

 

 

 

 

 

 

 

 

 

 

 

 

KEY PERFORMANCE RATIOS AND OTHER METRICS

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

1.04

%

1.10

%

0.75

%

1.03

%

1.06

%

Return on average total equity (annualized)

 

10.71

%

11.42

%

8.08

%

11.45

%

11.84

%

Net interest margin

 

3.25

%

3.48

%

3.46

%

3.37

%

3.50

%

Net interest margin (TEY) (Non-GAAP)(7)

 

3.40

%

3.63

%

3.60

%

3.52

%

3.64

%

Efficiency ratio (Non-GAAP) (8)

 

66.33

%

66.35

%

64.72

%

64.32

%

63.17

%

Gross loans and leases / total assets

 

74.99

%

75.41

%

76.23

%

75.84

%

75.87

%

Gross loans and leases / total deposits

 

90.59

%

93.86

%

96.44

%

94.44

%

93.14

%

Effective tax rate

 

9.87

%

20.98

%

15.44

%

15.26

%

15.88

%

Full-time equivalent employees (9)

 

771

 

755

 

728

 

666

 

639

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

4,968,502

 

$

4,842,232

 

$

4,677,875

 

$

4,053,684

 

$

3,994,691

 

Loans/leases

 

3,759,615

 

3,699,885

 

3,612,648

 

3,077,517

 

3,019,376

 

Deposits

 

4,110,868

 

3,986,236

 

3,840,077

 

3,343,003

 

3,239,562

 

Total stockholders’ equity

 

482,423

 

466,271

 

436,065

 

365,031

 

356,525

 

 


(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)         See GAAP to Non-GAAP reconciliations.

(9)         Growth in full-time equivalents due primarily to the merger with Springfield Bancshares, the acquisition of the Bates Companies and the addition of several new positions created to build scale.

 

7


 

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

 

 

 

For the Quarter Ended

 

 

 

March 31, 2019

 

December 31, 2018

 

March 31, 2018

 

 

 

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)

 

ANALYSIS OF NET INTEREST INCOME AND MARGIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fed funds sold

 

$

15,736

 

$

93

 

2.40

%

$

20,426

 

$

115

 

2.23

%

$

19,703

 

$

56

 

1.15

%

Interest-bearing deposits at financial institutions

 

155,463

 

923

 

2.41

%

98,875

 

517

 

2.07

%

49,531

 

197

 

1.61

%

Securities (1)

 

660,454

 

6,096

 

3.74

%

671,613

 

6,231

 

3.68

%

649,035

 

5,839

 

3.65

%

Restricted investment securities

 

21,285

 

307

 

5.85

%

22,478

 

318

 

5.61

%

21,830

 

234

 

4.35

%

Loans (1)

 

3,759,615

 

46,477

 

5.01

%

3,699,885

 

47,273

 

5.07

%

3,019,376

 

34,573

 

4.64

%

Total earning assets (1)

 

$

4,612,553

 

$

53,896

 

4.74

%

$

4,513,277

 

$

54,454

 

4.79

%

$

3,759,475

 

$

40,899

 

4.41

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

2,288,109

 

$

7,174

 

1.27

%

$

2,211,148

 

$

6,110

 

1.10

%

$

1,828,228

 

$

3,019

 

0.67

%

Time deposits

 

1,012,459

 

5,305

 

2.12

%

956,754

 

4,433

 

1.84

%

616,661

 

1,862

 

1.22

%

Short-term borrowings

 

14,377

 

71

 

2.00

%

20,129

 

98

 

1.93

%

17,271

 

33

 

0.77

%

Federal Home Loan Bank advances

 

147,355

 

903

 

2.49

%

190,232

 

974

 

2.03

%

236,689

 

1,064

 

1.82

%

Other borrowings

 

43,701

 

605

 

5.61

%

72,264

 

970

 

5.33

%

64,680

 

718

 

4.50

%

Subordinated debentures

 

38,637

 

564

 

5.92

%

 

 

0.00

%

 

 

0.00

%

Junior subordinated debentures

 

37,686

 

572

 

6.16

%

37,644

 

525

 

5.53

%

37,510

 

447

 

4.83

%

Total interest-bearing liabilities

 

$

3,582,324

 

$

15,194

 

1.72

%

$

3,488,171

 

$

13,110

 

1.49

%

$

2,801,039

 

$

7,143

 

1.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income / spread (1)

 

 

 

$

38,702

 

3.02

%

 

 

$

41,344

 

3.30

%

 

 

$

33,756

 

3.38

%

Net interest margin (2)

 

 

 

 

 

3.25

%

 

 

 

 

3.48

%

 

 

 

 

3.50

%

Net interest margin (TEY) (Non-GAAP) (1) (2) (3)

 

 

 

 

 

3.40

%

 

 

 

 

3.63

%

 

 

 

 

3.64

%

Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)

 

 

 

 

 

3.31

%

 

 

 

 

3.40

%

 

 

 

 

3.57

%

 


(1) Includes nontaxable securities and loans.  Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% tax rate.

(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.

 

8


 

 

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

 

 

 

As of

 

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

 

 

2019

 

2018

 

2018

 

2018

 

2018

 

 

 

(dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

39,847

 

$

43,077

 

$

37,545

 

$

36,533

 

$

34,356

 

Provision charged to expense

 

2,134

 

1,611

 

6,206

 

2,301

 

2,540

 

Loans/leases charged off

 

(1,059

)

(4,967

)

(991

)

(1,525

)

(436

)

Recoveries on loans/leases previously charged off

 

242

 

126

 

317

 

236

 

73

 

Ending balance

 

$

41,164

 

$

39,847

 

$

43,077

 

$

37,545

 

$

36,533

 

 

 

 

 

 

 

 

 

 

 

 

 

NONPERFORMING ASSETS

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans/leases

 

$

13,406

 

$

14,260

 

$

23,576

 

$

12,554

 

$

12,759

 

Accruing loans/leases past due 90 days or more

 

61

 

632

 

1,410

 

20

 

41

 

Troubled debt restructures - accruing

 

3,794

 

3,659

 

4,240

 

1,327

 

5,276

 

Total nonperforming loans/leases

 

17,261

 

18,551

 

29,226

 

13,901

 

18,076

 

Other real estate owned

 

9,110

 

9,378

 

12,204

 

12,750

 

12,750

 

Other repossessed assets

 

 

8

 

150

 

150

 

200

 

Total nonperforming assets

 

$

26,371

 

$

27,937

 

$

41,580

 

$

26,801

 

$

31,026

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY RATIOS

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets / total assets

 

0.52

%

0.56

%

0.87

%

0.65

%

0.77

%

Allowance / total loans/leases (1)

 

1.08

%

1.07

%

1.18

%

1.21

%

1.20

%

Allowance / nonperforming loans/leases (1)

 

238.48

%

214.80

%

147.39

%

270.09

%

202.11

%

Net charge-offs as a % of average loans/leases

 

0.02

%

0.13

%

0.02

%

0.04

%

0.01

%

 


(1)         Upon acquisition and per GAAP, acquired loans are recorded at market value which eliminates the allowance and impacts these ratios.

 

9


 

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

 

 

 

For the Quarter Ended

 

 

 

March 31,

 

December 31,

 

March 31,

 

SELECT FINANCIAL DATA - SUBSIDIARIES

 

2019

 

2018

 

2018

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

$

1,660,374

 

$

1,623,369

 

$

1,526,830

 

m2 Lease Funds, LLC

 

231,470

 

231,662

 

224,301

 

Cedar Rapids Bank and Trust

 

1,446,637

 

1,379,222

 

1,331,209

 

Community State Bank - Ankeny

 

785,076

 

785,364

 

696,979

 

Springfield First Community Bank

 

638,542

 

632,849

 

N/A

 

Rockford Bank and Trust

 

513,045

 

509,622

 

468,112

 

 

 

 

 

 

 

 

 

TOTAL DEPOSITS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

$

1,453,810

 

$

1,308,085

 

$

1,302,005

 

Cedar Rapids Bank and Trust

 

1,228,232

 

1,167,552

 

1,058,251

 

Community State Bank - Ankeny

 

673,231

 

627,127

 

563,540

 

Springfield First Community Bank

 

445,113

 

449,983

 

N/A

 

Rockford Bank and Trust

 

433,016

 

431,110

 

379,552

 

 

 

 

 

 

 

 

 

TOTAL LOANS & LEASES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

$

1,238,684

 

$

1,233,117

 

$

1,150,120

 

m2 Lease Funds, LLC

 

228,356

 

228,646

 

223,654

 

Cedar Rapids Bank and Trust

 

1,076,166

 

1,037,469

 

1,011,971

 

Community State Bank - Ankeny

 

588,021

 

582,453

 

513,951

 

Springfield First Community Bank

 

491,985

 

475,801

 

N/A

 

Rockford Bank and Trust

 

404,575

 

403,914

 

378,860

 

 

 

 

 

 

 

 

 

TOTAL LOANS & LEASES / TOTAL DEPOSITS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

85

%

94

%

88

%

Cedar Rapids Bank and Trust

 

88

%

89

%

96

%

Community State Bank - Ankeny

 

87

%

93

%

91

%

Springfield First Community Bank

 

111

%

106

%

N/A

 

Rockford Bank and Trust

 

93

%

94

%

100

%

 

 

 

 

 

 

 

 

TOTAL LOANS & LEASES / TOTAL ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

75

%

76

%

75

%

Cedar Rapids Bank and Trust

 

74

%

75

%

76

%

Community State Bank - Ankeny

 

75

%

74

%

74

%

Springfield First Community Bank

 

77

%

75

%

N/A

 

Rockford Bank and Trust

 

79

%

79

%

81

%

 

 

 

 

 

 

 

 

ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

1.09

%

1.09

%

1.16

%

m2 Lease Funds, LLC

 

1.39

%

1.49

%

1.67

%

Cedar Rapids Bank and Trust (2)

 

1.19

%

1.19

%

1.24

%

Community State Bank - Ankeny (2)

 

1.07

%

1.05

%

0.95

%

Springfield First Community Bank (2)

 

0.30

%

0.21

%

N/A

 

Rockford Bank and Trust

 

1.74

%

1.72

%

1.51

%

 

 

 

 

 

 

 

 

RETURN ON AVERAGE ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

1.19

%

1.22

%

1.37

%

Cedar Rapids Bank and Trust

 

1.54

%

1.78

%

1.45

%

Community State Bank - Ankeny

 

1.13

%

0.94

%

1.10

%

Springfield First Community Bank

 

1.12

%

1.74

%

N/A

 

Rockford Bank and Trust

 

0.46

%

1.29

%

0.61

%

 

 

 

 

 

 

 

 

NET INTEREST MARGIN PERCENTAGE (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

3.24

%

3.20

%

3.51

%

Cedar Rapids Bank and Trust (5)

 

3.41

%

3.60

%

3.70

%

Community State Bank - Ankeny (4)

 

4.04

%

4.73

%

4.40

%

Springfield First Community Bank (6)

 

4.06

%

4.68

%

N/A

 

Rockford Bank and Trust

 

2.92

%

2.87

%

3.29

%

 

 

 

 

 

 

 

 

ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET INTEREST MARGIN, NET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cedar Rapids Bank and Trust

 

$

144

 

$

740

 

$

243

 

Community State Bank - Ankeny

 

58

 

415

 

504

 

Springfield First Community Bank

 

910

 

1,498

 

N/A

 

QCR Holdings, Inc. (7)

 

(43

)

(44

)

(48

)

 


(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 eliminates the allowance and impacts this ratio.

(3) Includes nontaxable securities and loans.  Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% tax rate.

(4) Community State Bank’s net interest margin percentage includes various purchase accounting adjustments.  Excluding those adjustments, net interest margin would have been 3.98% for the quarter ended March 31, 2019, 4.00% for the quarter ended December 31, 2018 and 4.04% for the quarter ended March 31, 2018.

(5) Cedar Rapids Bank and Trust’s net interest margin percentage includes various purchase accounting adjustments.  Excluding those adjustments, net interest margin would have been 3.38% for the quarter ended March 31, 2019, 3.36% for the quarter ended December 31, 2018 and 3.62% for the quarter ended March 31, 2018.

(6) Springfield First Community Bank’s net interest margin percentage includes various purchase accounting adjustments.  Excluding those adjustments, net interest margin would have been 3.32% for the quarter ended March 31, 2019 and 3.52% for the quarter ended December 31, 2018.

(7) Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.

 

10


 

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)

 

 

 

As of

 

 

 

March 31

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

GAAP TO NON-GAAP RECONCILIATIONS

 

2019

 

2018

 

2018

 

2018

 

2018

 

 

 

(dollars in thousands, except per share data)

 

TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity (GAAP)

 

$

488,407

 

$

473,138

 

$

457,387

 

$

369,588

 

$

360,428

 

Less: Intangible assets

 

94,790

 

95,282

 

89,755

 

36,561

 

37,108

 

Tangible common equity (non-GAAP)

 

$

393,617

 

$

377,856

 

$

367,632

 

$

333,027

 

$

323,320

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets (GAAP)

 

$

5,066,662

 

$

4,949,710

 

$

4,792,732

 

$

4,106,883

 

$

4,026,314

 

Less: Intangible assets

 

94,790

 

95,282

 

89,755

 

36,561

 

37,108

 

Tangible assets (non-GAAP)

 

$

4,971,872

 

$

4,854,428

 

$

4,702,977

 

$

4,070,322

 

$

3,989,206

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets ratio (non-GAAP)

 

7.92

%

7.78

%

7.82

%

8.18

%

8.10

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

 

 

March 31

 

December 31,

 

September 30,

 

June 30,

 

March 31,

 

ADJUSTED NET INCOME (2)

 

2019

 

2018

 

2018

 

2018

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

12,918

 

$

13,316

 

$

8,809

 

$

10,445

 

$

10,550

 

 

 

 

 

 

 

 

 

 

 

 

 

Less nonrecurring items (post-tax) (3):

 

 

 

 

 

 

 

 

 

 

 

Income:

 

 

 

 

 

 

 

 

 

 

 

Securities gains, net

 

$

 

$

 

$

 

$

 

$

 

Total nonrecurring income (non-GAAP)

 

$

 

$

 

$

 

$

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

Expense:

 

 

 

 

 

 

 

 

 

 

 

Acquisition costs (4)

 

 

29

 

1,216

 

327

 

73

 

Post-acquisition compensation, transition and integration costs

 

106

 

1,127

 

390

 

130

 

 

Total nonrecurring expense (non-GAAP)

 

$

106

 

$

1,156

 

$

1,606

 

$

457

 

$

73

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (non-GAAP) (2)

 

$

13,024

 

$

14,472

 

$

10,415

 

$

10,902

 

$

10,623

 

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EARNINGS PER COMMON SHARE (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (non-GAAP) (from above)

 

$

13,024

 

$

14,472

 

$

10,415

 

$

10,902

 

$

10,623

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

15,693,345

 

15,641,401

 

15,625,123

 

13,919,565

 

13,888,661

 

Weighted average common and common equivalent shares outstanding

 

15,922,940

 

15,898,591

 

15,922,324