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Section 1: 10-Q (10-Q)

qcrh_Current_Folio_10Q

Table of Contents

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10‑Q

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

[    ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______to________

Commission file number 0‑22208

QCR HOLDINGS, INC.

(Exact name of Registrant as specified in its charter)

Delaware

42-1397595

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

 

3551 7th Street, Moline, Illinois 61265

(Address of principal executive offices, including zip code)

(309) 736‑3580

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [ X ]      No [    ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§  232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes [ X ]      No [    ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.

 

 

 

Large accelerated filer [   ]

Accelerated filer [ X ]

Non-accelerated filer  [   ]

Smaller reporting company [   ]

Emerging growth company [   ]

 

 

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. [   ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b‑2 of the Exchange Act).

Yes [    ]      No [ X ]

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $1.00 Par Value

QCRH

The Nasdaq Global Market

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date: As of May 1, 2019, the Registrant had outstanding 15,758,261 shares of common stock, $1.00 par value per share.

 

 


 

Table of Contents

QCR HOLDINGS, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

 

 

 

 

 

 

 

 

 

 

 

Page
Number(s)

Part I

    

FINANCIAL INFORMATION

 

 

 

 

 

 

 

 

 

Item 1

    

Consolidated Financial Statements (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheets
As of March 31, 2019 and December 31, 2018

4

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Income
For the Three Months Ended March 31, 2019 and 2018

5

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Comprehensive Income
For the Three Months Ended March 31, 2019 and 2018

6

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Changes in Stockholders' Equity
For the Three Months Ended March 31, 2019 and 2018

7

 

 

 

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows
For the Three Months Ended March 31, 2019 and 2018

8

 

 

 

 

 

 

 

 

 

 

Notes to Consolidated Financial Statements

10

 

 

 

 

 

 

 

 

 

 

Note 1. Summary of Significant Accounting Policies

10

 

 

 

 

Note 2. Investment Securities

12

 

 

 

 

Note 3. Loans/Leases Receivable

16

 

 

 

 

Note 4. Derivatives

25

 

 

 

 

Note 5. Subordinated Notes

26

 

 

 

 

Note 6. Earnings Per Share

26

 

 

 

 

Note 7. Fair Value

27

 

 

 

 

Note 8. Business Segment Information

29

 

 

 

 

Note 9. Regulatory Capital Requirements

30

 

 

 

 

 

 

 

 

Item 2

 

Management's Discussion and Analysis of Financial Condition and Results of Operations

 

 

 

 

 

 

 

 

 

 

 

Introduction

32

 

 

 

 

General

32

 

 

 

 

Executive Overview

32

 

 

 

 

Long-Term Financial Goals

34

 

 

 

 

Strategic Developments

35

 

 

 

 

GAAP to Non-GAAP Reconciliations

36

 

 

 

 

Net Interest Income (Tax Equivalent Basis)

38

 

 

 

 

Critical Accounting Policies

40

 

 

 

 

Results of Operations

41

 

 

 

 

Interest Income

41

2


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

41

 

 

 

 

Provision for Loan/Lease Losses

41

 

 

 

 

Noninterest Income

42

 

 

 

 

Noninterest Expense

44

 

 

 

 

Income Taxes

45

 

 

 

 

Financial Condition

46

 

 

 

 

Investment Securities

46

 

 

 

 

Loans/Leases

47

 

 

 

 

Allowance for Estimated Losses on Loans/Leases

49

 

 

 

 

Nonperforming Assets

51

 

 

 

 

Deposits

51

 

 

 

 

Borrowings

52

 

 

 

 

Stockholders' Equity

53

 

 

 

 

Liquidity and Capital Resources

54

 

 

 

 

Special Note Concerning Forward-Looking Statements

55

 

 

 

 

 

 

 

 

Item 3

    

Quantitative and Qualitative Disclosures About Market Risk

57

 

 

 

 

 

 

 

 

Item 4

 

Controls and Procedures

59

 

 

 

 

 

 

Part II 

    

OTHER INFORMATION

60

 

 

 

 

 

 

 

 

Item 1

 

Legal Proceedings

60

 

 

 

 

 

 

 

 

Item 1A

 

Risk Factors

60

 

 

 

 

 

 

 

 

Item 2

 

Unregistered Sales of Equity Securities and Use of Proceeds

60

 

 

 

 

 

 

 

 

Item 3

 

Defaults upon Senior Securities

60

 

 

 

 

 

 

 

 

Item 4

 

Mine Safety Disclosures

60

 

 

 

 

 

 

 

 

Item 5

 

Other Information

60

 

 

 

 

 

 

 

 

Item 6

 

Exhibits

61

 

 

 

 

 

 

Signatures 

62

Throughout this Quarterly Report on Form 10-Q, we use certain acronyms and abbreviations, as defined in Note 1.

3


 

Table of Contents

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of March 31, 2019 and December 31, 2018

 

 

 

 

 

 

 

 

    

March 31,

    

December 31, 

 

 

2019

 

2018

 

 

(dollars in thousands)

Assets

 

 

 

 

 

 

Cash and due from banks

 

$

76,527

 

$

85,523

Federal funds sold

 

 

1,872

 

 

26,398

Interest-bearing deposits at financial institutions

 

 

214,160

 

 

133,198

 

 

 

 

 

 

 

Securities held to maturity, at amortized cost

 

 

395,302

 

 

401,913

Securities available for sale, at fair value

 

 

260,447

 

 

261,056

Total securities

 

 

655,749

 

 

662,969

 

 

 

  

 

 

  

Loans receivable held for sale

 

 

1,994

 

 

1,295

Loans/leases receivable held for investment

 

 

3,797,438

 

 

3,731,459

Gross loans/leases receivable

 

 

3,799,432

 

 

3,732,754

Less allowance for estimated losses on loans/leases

 

 

(41,164)

 

 

(39,847)

Net loans/leases receivable

 

 

3,758,268

 

 

3,692,907

 

 

 

  

 

 

  

Bank-owned life insurance

 

 

68,323

 

 

67,783

Premises and equipment, net

 

 

77,194

 

 

75,582

Restricted investment securities

 

 

22,904

 

 

25,689

Other real estate owned, net

 

 

9,110

 

 

9,378

Goodwill

 

 

77,872

 

 

77,832

Intangibles

 

 

16,918

 

 

17,450

Other assets

 

 

87,765

 

 

75,001

Total assets

 

$

5,066,662

 

$

4,949,710

 

 

 

  

 

 

  

Liabilities and Stockholders' Equity

 

 

  

 

 

  

Liabilities:

 

 

  

 

 

  

Deposits:

 

 

  

 

 

  

Noninterest-bearing

 

$

821,599

 

$

791,102

Interest-bearing

 

 

3,372,621

 

 

3,185,929

Total deposits

 

 

4,194,220

 

 

3,977,031

 

 

 

  

 

 

  

Short-term borrowings

 

 

15,886

 

 

28,774

Federal Home Loan Bank advances

 

 

126,180

 

 

266,492

Other borrowings

 

 

35,000

 

 

67,250

Subordinated notes

 

 

68,215

 

 

4,782

Junior subordinated debentures

 

 

37,713

 

 

37,670

Other liabilities

 

 

101,041

 

 

94,573

Total liabilities

 

 

4,578,255

 

 

4,476,572

 

 

 

  

 

 

  

 

 

 

  

 

 

  

Stockholders' Equity:

 

 

  

 

 

  

Preferred stock, $1 par value; shares authorized 250,000 March 2019 and December 2018- No shares issued or outstanding

 

 

 —

 

 

 —

Common stock, $1 par value; shares authorized 20,000,000 March 2019 - 15,755,442 shares issued and outstanding December 2018 - 15,718,208 shares issued and outstanding

 

 

15,755

 

 

15,718

Additional paid-in capital

 

 

271,673

 

 

270,761

Retained earnings

 

 

204,179

 

 

192,203

Accumulated other comprehensive loss:

 

 

 

 

 

 

Securities available for sale

 

 

(1,131)

 

 

(4,268)

Derivatives

 

 

(2,069)

 

 

(1,276)

Total stockholders' equity

 

 

488,407

 

 

473,138

Total liabilities and stockholders' equity

 

$

5,066,662

 

$

4,949,710

 

See Notes to Consolidated Financial Statements (Unaudited)

4


 

Table of Contents

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended March 31, 2019 and 2018

 

 

 

 

 

 

 

 

 

    

2019

    

2018

 

 

 

(dollars in thousands, except share data)

 

Interest and dividend income:

 

 

 

 

 

 

 

Loans/leases, including fees

 

$

45,568

 

$

34,214

 

Securities:

 

 

 

 

 

 

 

Taxable

 

 

1,666

 

 

1,556

 

Nontaxable

 

 

3,545

 

 

3,289

 

Interest-bearing deposits at financial institutions

 

 

923

 

 

197

 

Restricted investment securities

 

 

307

 

 

234

 

Federal funds sold

 

 

93

 

 

56

 

Total interest and dividend income

 

 

52,102

 

 

39,546

 

 

 

 

 

 

 

 

 

Interest expense:

 

 

 

 

 

 

 

Deposits

 

 

12,479

 

 

4,881

 

Short-term borrowings

 

 

71

 

 

33

 

Federal Home Loan Bank advances

 

 

903

 

 

1,064

 

Other borrowings

 

 

605

 

 

718

 

Subordinated notes

 

 

564

 

 

 —

 

Junior subordinated debentures

 

 

572

 

 

447

 

Total interest expense

 

 

15,194

 

 

7,143

 

Net interest income

 

 

36,908

 

 

32,403

 

Provision for loan/lease losses

 

 

2,134

 

 

2,540

 

Net interest income after provision for loan/lease losses

 

 

34,774

 

 

29,863

 

 

 

 

 

 

 

 

 

Noninterest income:

 

 

 

 

 

 

 

Trust department fees

 

 

2,493

 

 

2,237

 

Investment advisory and management fees

 

 

1,736

 

 

952

 

Deposit service fees

 

 

1,554

 

 

1,531

 

Gains on sales of residential real estate loans, net

 

 

369

 

 

101

 

Gains on sales of government guaranteed portions of loans, net

 

 

31

 

 

358

 

Swap fee income

 

 

3,198

 

 

959

 

Earnings on bank-owned life insurance

 

 

540

 

 

418

 

Debit card fees

 

 

792

 

 

766

 

Correspondent banking fees

 

 

216

 

 

265

 

Other

 

 

1,064

 

 

954

 

Total noninterest income

 

 

11,993

 

 

8,541

 

 

 

 

 

 

 

 

 

Noninterest expense:

 

 

 

 

 

 

 

Salaries and employee benefits

 

 

20,879

 

 

15,978

 

Occupancy and equipment expense

 

 

3,694

 

 

3,066

 

Professional and data processing fees

 

 

2,750

 

 

2,708

 

Acquisition costs

 

 

 —

 

 

93

 

Post-acquisition compensation, transition and integration costs

 

 

134

 

 

 —

 

FDIC insurance, other insurance and regulatory fees

 

 

964

 

 

756

 

Loan/lease expense

 

 

214

 

 

291

 

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

 

 

298

 

 

132

 

Advertising and marketing

 

 

785

 

 

693

 

Bank service charges

 

 

483

 

 

440

 

Correspondent banking expense

 

 

204

 

 

204

 

CDI amortization

 

 

532

 

 

305

 

Other

 

 

1,498

 

 

1,197

 

Total noninterest expense

 

 

32,435

 

 

25,863

 

Net income before income taxes

 

 

14,332

 

 

12,541

 

Federal and state income tax expense

 

 

1,414

 

 

1,991

 

Net income

 

$

12,918

 

$

10,550

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.82

 

$

0.76

 

Diluted earnings per common share

 

$

0.81

 

$

0.74

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

15,693,345

 

 

13,888,661

 

Weighted average common and common equivalent shares outstanding

 

 

15,922,940

 

 

14,205,584

 

 

 

 

 

 

 

 

 

Cash dividends declared per common share

 

$

0.06

 

$

0.06

 

See Notes to Consolidated Financial Statements (Unaudited)

5


 

Table of Contents

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Three months ended March 31, 2019 and 2018

 

 

 

 

 

 

 

 

 

 

 

    

 

    

2019

    

2018

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

Net income

 

$

12,918

 

$

10,550

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized gains (losses) on securities available for sale:

 

 

 

 

 

 

 

Unrealized holding gains (losses) arising during the period before tax

 

 

4,144

 

 

(5,366)

 

Less reclassification adjustment for adoption of ASU 2016-01

 

 

 —

 

 

855

 

 

 

 

4,144

 

 

(4,511)

 

Unrealized gains (losses) on derivatives:

 

 

 

 

 

 

 

Unrealized holding gains (losses) arising during the period before tax

 

 

(1,162)

 

 

150

 

Less reclassification adjustment for ineffectiveness and caplet amortization before tax

 

 

(157)

 

 

(81)

 

 

 

 

(1,005)

 

 

231

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss), before tax

 

 

3,139

 

 

(4,280)

 

Tax expense (benefit)

 

 

795

 

 

(1,078)

 

Other comprehensive income (loss), net of tax

 

 

2,344

 

 

(3,202)

 

 

 

 

 

 

 

 

 

Comprehensive income

 

$

15,262

 

$

7,348

 

 

See Notes to Consolidated Financial Statements (Unaudited)

 

6


 

Table of Contents

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)

Three months ended March 31, 2019 and 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

 

Common

 

Paid-In

 

Retained

 

Comprehensive

 

 

 

 

    

Stock

    

Capital

    

Earnings

    

(Loss)

    

Total

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance December 31, 2018

 

$

15,718

 

$

270,761

 

$

192,203

 

$

(5,544)

 

$

473,138

Net income

 

 

 —

 

 

 —

 

 

12,918

 

 

 —

 

 

12,918

Other comprehensive income, net of tax

 

 

 —

 

 

 —

 

 

 —

 

 

2,344

 

 

2,344

Common cash dividends declared, $0.06 per share

 

 

 —

 

 

 —

 

 

(942)

 

 

 —

 

 

(942)

Issuance of 4,446 shares of common stock as a result of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  stock purchased under the Employee Stock Purchase Plan

 

 

 4

 

 

124

 

 

 —

 

 

 —

 

 

128

Issuance of 25,238 shares of common stock as a result of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  stock options exercised

 

 

25

 

 

263

 

 

 —

 

 

 —

 

 

288

Stock-based compensation expense

 

 

 —

 

 

722

 

 

 —

 

 

 —

 

 

722

Restricted stock awards and restricted stock units - 12,719

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  shares of common stock, net of restricted stock units

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  withheld for payment of taxes

 

 

13

 

 

(50)

 

 

 —

 

 

 —

 

 

(37)

Exchange of 5,169 shares of common stock in connection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   with payroll taxes for restricted stock vested and in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   connection with stock options exercised

 

 

(5)

 

 

(147)

 

 

 —

 

 

 —

 

 

(152)

Balance, March 31, 2019

 

$

15,755

 

$

271,673

 

$

204,179

 

$

(3,200)

 

$

488,407

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

 

Common

 

Paid-In

 

Retained

 

Comprehensive

 

 

 

 

    

Stock

    

Capital

    

Earnings

    

(Loss)

    

Total

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance December 31, 2017

 

$

13,918

 

$

189,077

 

$

151,963

 

$

(1,671)

 

$

353,287

Net income

 

 

 —

 

 

 —

 

 

10,550

 

 

 —

 

 

10,550

Other comprehensive loss, net of tax

 

 

 —

 

 

 —

 

 

 —

 

 

(3,202)

 

 

(3,202)

Impact of adoption of ASU 2016-01

 

 

 —

 

 

 

 

 

667

 

 

(667)

 

 

 —

Common cash dividends declared, $0.06 per share

 

 

 —

 

 

 —

 

 

(834)

 

 

 —

 

 

(834)

Issuance of 2,669 shares of common stock as a result of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  stock purchased under the Employee Stock Purchase Plan

 

 

 3

 

 

100

 

 

 —

 

 

 —

 

 

103

Issuance of 13,074 shares of common stock as a result of stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  options exercised

 

 

13

 

 

193

 

 

 —

 

 

 —

 

 

206

Stock-based compensation expense

 

 

 —

 

 

496

 

 

 —

 

 

 —

 

 

496

Restricted stock awards - 6,860 shares of common stock

 

 

 7

 

 

(7)

 

 

 —

 

 

 —

 

 

 —

Exchange of 3,814 shares of common stock in connection

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   with payroll taxes for restricted stock vested and in

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   connection with stock options exercised

 

 

(4)

 

 

(174)

 

 

 —

 

 

 —

 

 

(178)

Balance, March 31, 2018

 

$

13,937

 

$

189,685

 

$

162,346

 

$

(5,540)

 

$

360,428

 

See Notes to Consolidated Financial Statements (Unaudited)

 

 

7


 

Table of Contents

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three months ended March 31, 2019 and 2018

 

 

 

 

 

 

 

 

 

    

2019

    

2018

 

 

 

(dollars in thousands)

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

  

 

 

  

 

Net income

 

$

12,918

 

$

10,550

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

  

 

 

  

 

Depreciation

 

 

1,235

 

 

1,021

 

Provision for loan/lease losses

 

 

2,134

 

 

2,540

 

Stock-based compensation expense

 

 

722

 

 

495

 

Deferred compensation expense accrued

 

 

733

 

 

512

 

Losses (gains) on other real estate owned, net

 

 

224

 

 

118

 

Amortization of premiums on securities, net

 

 

448

 

 

439

 

Loans originated for sale

 

 

(18,034)

 

 

(12,939)

 

Proceeds on sales of loans

 

 

17,735

 

 

13,764

 

Gains on sales of residential real estate loans

 

 

(369)

 

 

(101)

 

Gains on sales of government guaranteed portions of loans

 

 

(31)

 

 

(358)

 

Gains on sales of premises and equipment

 

 

(47)

 

 

 —

 

Amortization of core deposit intangible

 

 

532

 

 

305

 

Accretion of acquisition fair value adjustments, net

 

 

(1,069)

 

 

(699)

 

Increase in cash value of bank-owned life insurance

 

 

(540)

 

 

(418)

 

Decrease (increase) in other assets

 

 

1,121

 

 

(4,438)

 

Decrease in other liabilities

 

 

(9,110)

 

 

(2,888)

 

Net cash provided by operating activities

 

$

8,602

 

$

7,903

 

 

 

 

  

 

 

  

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

  

 

 

  

 

Net decrease in federal funds sold

 

 

24,526

 

 

15,692

 

Net decrease (increase) in interest-bearing deposits at financial institutions

 

 

(80,962)

 

 

10,714

 

Proceeds from sales of other real estate owned

 

 

202

 

 

736

 

Activity in securities portfolio:

 

 

 

 

 

 

 

Purchases

 

 

(4,079)

 

 

(7,100)

 

Calls, maturities and redemptions

 

 

4,510

 

 

4,540

 

Paydowns

 

 

10,426

 

 

9,085

 

Activity in restricted investment securities:

 

 

  

 

 

 

 

Purchases

 

 

(3,110)

 

 

(4,451)

 

Redemptions

 

 

5,895

 

 

1,820

 

Net increase in loans/leases originated and held for investment

 

 

(65,777)

 

 

(90,378)

 

Purchase of premises and equipment

 

 

(3,970)

 

 

(704)

 

Proceeds from sales of premises and equipment

 

 

117

 

 

 —

 

Net cash used in investing activities

 

$

(112,222)

 

$

(60,046)

 

 

 

 

  

 

 

  

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

  

 

 

  

 

Net increase in deposit accounts

 

 

217,257

 

 

13,377

 

Net increase (decrease) in short-term borrowings

 

 

(12,888)

 

 

2,867

 

Activity in Federal Home Loan Bank advances:

 

 

  

 

 

 

 

Term advances

 

 

5,000

 

 

 —

 

Calls and maturities

 

 

(15,000)

 

 

 —

 

Net change in short-term and overnight advances

 

 

(130,365)

 

 

24,345

 

Activity in other borrowings:

 

 

  

 

 

 

 

Calls, maturities and scheduled principal payments

 

 

(1,937)

 

 

(1,938)

 

Prepayments

 

 

(21,313)

 

 

 —

 

  Paydown of revolving line of credit

 

 

(9,000)

 

 

 —

 

Proceeds from subordinated notes

 

 

63,393

 

 

 —

 

Payment of cash dividends on common stock

 

 

(939)

 

 

(693)

 

Proceeds from issuance of common stock, net

 

 

416

 

 

309

 

Net cash provided by financing activities

 

$

94,624

 

$

38,267

 

Net decrease in cash and due from banks

 

 

(8,996)

 

 

(13,876)

 

 

 

 

 

 

 

 

 

Cash and due from banks, beginning

 

 

85,523

 

 

75,722

 

Cash and due from banks, ending

 

$

76,527

 

$

61,846

 

 

(Continued)

8


 

Table of Contents

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - continued

Three months ended March 31, 2019 and 2018

 

 

 

 

 

 

 

 

 

 

2019

    

2018

 

Supplemental disclosure of cash flow information, cash payments (receipts) for:

 

 

  

 

 

  

 

Interest

 

$

14,146

 

$

3,655

 

Income/franchise taxes

 

 

(590)

 

 

75

 

 

 

 

  

 

 

 

 

Supplemental schedule of noncash investing activities:

 

 

  

 

 

 

 

Change in accumulated other comprehensive income, unrealized gains on securities available for sale and derivative instruments, net

 

 

2,344

 

 

(3,202)

 

Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised

 

 

(152)

 

 

(178)

 

Transfers of loans to other real estate owned

 

 

158

 

 

46

 

Increase in the fair value of back-to-back interest rate swap assets and liabilities

 

 

13,882

 

 

103

 

Dividends payable

 

 

942

 

 

834