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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): October 23, 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))

 

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 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 October 23, 2019, QCR Holdings, Inc. issued a press release disclosing financial results for the quarter ended September 30, 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.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

99.1                        Press Release dated October 23, 2019, containing financial information for the quarter ended September 30, 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: October 23, 2019

By:

/s/ Todd A. Gipple

 

 

Todd A. Gipple

 

 

President, Chief Operating Officer and Chief Financial Officer

 

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(Back To Top)

Section 2: EX-99.1 (EX-99.1)

Exhibit 99.1

 

 

 

PRESS RELEASE

 

 

FOR IMMEDIATE RELEASE

 

QCR Holdings, Inc. Announces Record Net Income of $15.1 Million for the Third Quarter of 2019

 

Third Quarter 2019 Highlights

 

·                  Net income of $15.1 million, or $0.94 per diluted share

·                  Adjusted net income (non-GAAP) of $15.9 million, or $1.00 per diluted share

·                  Expanded NIM and NIM (TEY)(non-GAAP) each by 12 basis points, to 3.37% and 3.52%, respectively

·                  Record noninterest income of $19.9 million for the quarter and $49.0 million year-to-date

·                  Definitive agreement to sell Rockford Bank & Trust (“RB&T”) to Heartland Financial USA, Inc.

·                  Excluding RB&T held for sale assets and liabilities:

·                  Annualized loan and lease growth was 9.1% for the quarter and 9.4% year-to-date

·                  Deposits were down 1.7% on a linked quarter basis and up 9.6% annualized year-to-date

·                  Nonperforming assets were down $2.5 million, or 15.6% from the prior quarter

 

Moline, IL, October 23, 2019 — QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced net income of $15.1 million and diluted earnings per share (“EPS”) of $0.94 for the third quarter of 2019, compared to net income of $13.5 million and diluted EPS of $0.85 for the second quarter of 2019. The third quarter results included $0.7 million of post-acquisition compensation, transition and integration costs (after-tax), compared to $0.6 million of similar costs in the second quarter of 2019. Excluding these expenses and some modest cost for early debt extinguishment, the Company reported adjusted net income (non-GAAP) of $15.9 million and adjusted diluted EPS of $1.00 for the third quarter of 2019, compared to adjusted net income (non-GAAP) of $14.1 million and adjusted diluted EPS of $0.88 for the second quarter of 2019. For the third quarter of 2018, net income and diluted EPS were $8.8 million and $0.55, respectively, and adjusted net income (non-GAAP) and adjusted diluted EPS were $10.4 million and $0.65, respectively.

 

 

 

For the Quarter Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

$ in millions (except per share data)

 

2019

 

2019

 

2018

 

Net Income

 

$

15.1

 

$

13.5

 

$

8.8

 

Diluted EPS

 

$

0.94

 

$

0.85

 

$

0.55

 

Adjusted Net Income (non-GAAP)(1)

 

$

15.9

 

$

14.1

 

$

10.4

 

Adjusted Diluted EPS (non-GAAP)(1) 

 

$

1.00

 

$

0.88

 

$

0.65

 

 


(1)  See GAAP to non-GAAP reconciliations.

 

“We are very pleased with our results for the third quarter,” commented Larry J. Helling, Chief Executive Officer. “We delivered another record quarter of net income, driven by continued strong loan growth, an expanded net interest margin, record fee income, improved credit quality and careful management of noninterest expenses. Despite the highly competitive lending environment, which has led to industry-wide pressure on rates, we have been able to maintain both our pricing and underwriting discipline. This helped us maintain our loan yields even as we grew loans during the quarter. We continue to attract new clients that appreciate our relationship-based community banking model.”

 

Agreement to sell Rockford Bank & Trust to Heartland Financial USA

 

On August 13, 2019 the Company announced that it had entered into a definitive agreement with Illinois Bank & Trust (“IB&T”), a wholly-owned subsidiary of Heartland Financial USA, Inc. to sell to IB&T substantially all of the assets and for IB&T to assume substantially all of the deposits and certain other liabilities of RB&T. The transaction is valued at approximately $59 million and the Company is expected to record an approximate $13 million pre-tax gain on the sale excluding costs. The transaction is expected to close in the fourth quarter of 2019.  As a result, substantially all of RB&T’s assets and liabilities are classified as held for sale as of September 30, 2019, which impacts balance sheet comparisons to prior quarters.

 

Annualized Loan and Lease Growth of 9.1%, excluding RB&T

 

During the third quarter of 2019, the Company’s total assets increased $97.5 million to a total of $5.3 billion. Total loans and leases declined by $300.2 million, entirely as a result of classifying substantially all of RB&T’s loans as held for sale, totaling $368.5 million,

 


 

gross.  Excluding RB&T’s loans for both the second and third quarters of 2019, total loans and leases grew by $80.3 million, or 2.3% on a linked quarter basis.

 

Total deposits declined by $520.3 million mainly as a result of classifying substantially all of RB&T’s liabilities as held for sale, which included deposits of $451.5 million. Excluding RB&T’s deposits for both the second and third quarters of 2019, total deposits declined by $67.1 million, driven primarily by a decline in higher cost public funds and brokered CDs, as the Company intentionally did not renew certain deposits as they matured. At quarter-end, the percentage of wholesale funds to total assets was 11.6%, as compared to 10.0% in the second quarter. Additionally, at quarter-end, the percentage of gross loans and leases to total assets, excluding assets held for sale, remained consistent on a linked quarter basis at 75%.

 

“Our loan and lease growth during the third quarter was driven by solid production from both our core commercial lending business and our Specialty Finance Group,” added Mr. Helling. “Excluding RB&T, loan and lease growth for the first nine months of 2019 has been 9.4% on an annualized basis, and given our solid pipeline, we remain confident that we will be able to achieve organic loan growth of between 8% and 10% for the full year.”

 

Record Net Interest Income of $40.7 million

 

Net interest income for the third quarter of 2019 totaled $40.7 million, compared to $38.0 million for the second quarter of 2019 and $38.3 million for the third quarter of 2018. The increase was due to growth in average interest earning assets of $93.3 million, or 2.0% on a linked quarter basis, combined with the positive impact of a 12 basis point increase in reported net interest margin. Acquisition-related net accretion totaled $1.3 million (pre-tax) for the third quarter of 2019, compared to $1.1 million for the second quarter of 2019 and was $1.7 million for the third quarter of 2018. Adjusted net interest income (non-GAAP) was $41.2 million for the third quarter of 2019, compared to $38.7 million for the second quarter of 2019 and $38.2 million for the third quarter of 2018.

 

In the third quarter, reported net interest margin was 3.37% and, on a tax-equivalent yield basis, net interest margin was 3.52%, both increasing by 12 basis points from the second quarter of 2019. Net interest margin, excluding acquisition-related net accretion was 3.41%, up 10 basis points from the second quarter. The increase in adjusted net interest margin during the quarter was due to a 5 basis point increase in the yield on interest earning assets combined with a 5 basis point decline in the total cost of interest-bearing funds (due to both mix and rate).

 

 

 

For the Quarter Ended

 

 

 

September 30,

 

June 30,

 

 

 

2019

 

2019

 

NIM

 

3.37

%

3.25

%

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

 

3.52

%

3.40

%

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

 

3.41

%

3.31

%

 


(1) See GAAP to non-GAAP reconciliations.

 

“Our significant focus on expanding our net interest margin generated positive results as we produced a 12 basis-point increase in reported margin during the third quarter,” stated Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer. “While total deposits declined on a linked-quarter basis after excluding RB&T, it was mainly driven by an intentional runoff of higher cost public funds and brokered CDs, as our core deposits grew modestly during the quarter. Our organic loan and lease growth during the quarter was primarily funded by the excess liquidity that resulted from the strong increase in core deposits we generated in the first half of the year.”

 

Record Noninterest Income of $19.9 million

 

Noninterest income for the third quarter of 2019 totaled $19.9 million, compared to $17.1 million for the second quarter of 2019. The increase was primarily due to a $1.9 million increase in swap fee income and $0.9 million increase on gains on the sale of residential real estate loans and the government guaranteed portions of loans. Wealth management revenue was $4.1 million for the quarter, comparable to the second quarter of 2019. Noninterest income has increased 126% when compared to the third quarter of 2018.

 

“Noninterest income increased 17% from the second quarter, driven primarily by another quarterly record for swap fee income. This fee income is correlated to strong production from our Specialty Finance Group in the area of tax credit project lending, where our clients are locking in long-term fixed rate financing. Swap fee income and gains on the sale of government guaranteed loans totaled $21.5 million for the first nine months of 2019, already putting us well in excess of our initial full-year target of $8 to $12 million,” added Mr. Gipple.

 

2


 

Noninterest Expenses of $39.9 million

 

Noninterest expense for the third quarter of 2019 totaled $39.9 million, compared to $36.6 million and $30.5 million for the second quarter of 2019 and third quarter of 2018, respectively. The linked quarter increase was due to a number of factors, including a $0.9 million increase in net costs of operations of other real estate, as the Company reduced the carrying value of an OREO property by $2.0 million. There was also an additional $1.5 million of bonus and commission expense in the quarter, driven by the strong financial results and higher than anticipated swap fee income.

 

Asset Quality Remains Solid

 

Nonperforming assets (“NPAs”) totaled $13.1 million, a decrease of $10.1 million from the second quarter of 2019. Excluding RB&T NPAs held for sale, the decline was $2.5 million, or 15.6%.  The decrease was primarily due to the $2.0 million write down of an existing OREO property.  The lower NPAs resulted in the ratio of NPAs to total assets improving to 0.27% (excluding RB&T) at September 30, 2019, compared to 0.45% at June 30, 2019 and 0.87% at September 30, 2018.

 

The Company’s provision for loan and lease losses totaled $2.0 million for the third quarter of 2019, which was up modestly from $1.9 million from the prior quarter and down significantly from $6.2 million in the third quarter of 2018. The linked quarter increase in the provision for loan and lease losses was primarily due to $488 thousand of provision related to an RB&T nonperforming loan held for sale.  As of September 30, 2019, the Company’s allowance to total loans and leases was 1.00%, which was down from 1.05% at June 30, 2019 and down from 1.18% at September 30, 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 ($7.7 million at September 30, 2019).

 

Strong Capital Levels

 

As of September 30, 2019, the Company’s total risk-based capital ratio was 11.93%, the common equity tier 1 ratio was 8.91%, and the tangible common equity to tangible assets ratio was 8.20%. By comparison, these respective ratios were 12.04%, 8.93% and 8.05% as of June 30, 2019.

 

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, October 24, 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 replay through November 7, 2019. The replay access information is 877-344-7529 (international 412-317-0088); access code 10135244. 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.

 

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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. The banks 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, Rockford Bank & Trust Company, based in Rockford, Illinois, commenced operations in 2005, and Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. Quad City Bank & Trust Company engages in commercial leasing through its wholly owned subsidiary, m2 Lease Funds, LLC, based in Milwaukee, Wisconsin, and also provides correspondent banking services. The Company has 27 locations in Illinois, Iowa, Wisconsin and Missouri. As of September 30, 2019, the Company had approximately $5.3 billion in assets, $3.6 billion in loans and $3.8 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 (including the impact of tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations); (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 acquisitions and the possibility that 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.

 

Contacts:

 

Todd A. Gipple

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

 

Held for Sale
As of

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

September 30,

 

 

 

2019

 

2019

 

2019

 

2018

 

2018

 

2019

 

 

 

(dollars in thousands)

 

 

 

CONDENSED BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

91,671

 

$

87,919

 

$

76,527

 

$

85,523

 

$

73,407

 

$

11,031

 

Federal funds sold and interest-bearing deposits

 

197,263

 

205,497

 

216,032

 

159,596

 

129,660

 

2,415

 

Securities

 

555,409

 

643,803

 

655,749

 

662,969

 

650,745

 

66,009

 

Net loans/leases

 

3,574,154

 

3,869,415

 

3,758,268

 

3,692,907

 

3,610,309

 

362,011

 

Intangibles

 

15,529

 

16,089

 

16,918

 

17,450

 

16,137

 

 

 

Goodwill

 

77,748

 

77,748

 

77,872

 

77,832

 

73,618

 

 

 

Other assets

 

315,061

 

294,381

 

265,296

 

253,433

 

238,856

 

24,081

 

Assets held for sale

 

465,547

 

 

 

 

 

 

Total assets

 

$

5,292,382

 

$

5,194,852

 

$

5,066,662

 

$

4,949,710

 

$

4,792,732

 

$

465,547

 

Total deposits

 

$

3,802,241

 

$

4,322,510

 

$

4,194,220

 

$

3,977,031

 

$

3,788,277

 

$

451,546

 

Total borrowings

 

320,457

 

230,953

 

282,994

 

404,968

 

483,635

 

16,157

 

Other liabilities

 

179,411

 

137,089

 

101,041

 

94,573

 

63,433

 

2,827

 

Liabilities held for sale

 

470,530

 

 

 

 

 

 

Total stockholders’ equity

 

519,743

 

504,300

 

488,407

 

473,138

 

457,387

 

 

Total liabilities and stockholders’ equity

 

$

5,292,382

 

$

5,194,852

 

$

5,066,662

 

$

4,949,710

 

$

4,792,732

 

$

470,530

 

ANALYSIS OF LOAN PORTFOLIO

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan/lease mix

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans

 

$

1,469,978

 

$

1,548,657

 

$

1,479,247

 

$

1,429,410

 

$

1,380,543

 

 

 

Commercial real estate loans

 

1,687,922

 

1,837,473

 

1,790,845

 

1,766,111

 

1,727,326

 

 

 

Direct financing leases

 

92,307

 

101,180

 

108,543

 

117,969

 

126,752

 

 

 

Residential real estate loans

 

245,667

 

293,479

 

288,502

 

290,759

 

309,288

 

 

 

Installment and other consumer loans

 

106,540

 

120,947

 

123,087

 

119,381

 

100,191

 

 

 

Deferred loan/lease origination costs, net of fees

 

7,856

 

8,783

 

9,208

 

9,124

 

9,286

 

 

 

Total loans/leases

 

$

3,610,270

 

$

3,910,519

 

$

3,799,432

 

$

3,732,754

 

$

3,653,386

 

 

 

Less allowance for estimated losses on loans/leases

 

36,116

 

41,104

 

41,164

 

39,847

 

43,077

 

 

 

Net loans/leases

 

$

3,574,154

 

$

3,869,415

 

$

3,758,268

 

$

3,692,907

 

$

3,610,309

 

 

 

ANALYSIS OF SECURITIES PORTFOLIO

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities mix

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government sponsored agency securities

 

$

21,268

 

$

35,762

 

$

35,843

 

$

36,411

 

$

36,492

 

 

 

Municipal securities

 

391,329

 

440,853

 

450,376

 

459,409

 

453,275

 

 

 

Residential mortgage-backed and related securities

 

123,880

 

159,228

 

161,692

 

159,249

 

155,733

 

 

 

Other securities

 

18,932

 

7,960

 

7,838

 

7,900

 

5,245

 

 

 

Total securities

 

$

555,409

 

$

643,803

 

$

655,749

 

$

662,969

 

$

650,745

 

 

 

ANALYSIS OF DEPOSITS

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit mix

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

 

$

782,232

 

$

795,951

 

$

821,599

 

$

791,101

 

$

802,090

 

 

 

Interest-bearing demand deposits

 

2,245,557

 

2,505,956

 

2,334,474

 

2,204,206

 

2,094,814

 

 

 

Time deposits

 

536,352

 

733,135

 

719,286

 

704,903

 

615,323

 

 

 

Brokered deposits

 

238,100

 

287,468

 

318,861

 

276,821

 

276,050

 

 

 

Total deposits

 

$

3,802,241

 

$

4,322,510

 

$

4,194,220

 

$

3,977,031

 

$

3,788,277

 

 

 

ANALYSIS OF BORROWINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings mix

 

 

 

 

 

 

 

 

 

 

 

 

 

Term FHLB advances

 

$

60,000

 

$

46,433

 

$

66,380

 

$

76,327

 

$

63,399

 

 

 

Overnight FHLB advances (1)

 

135,800

 

59,300

 

59,800

 

190,165

 

295,730

 

 

 

Wholesale structured repurchase agreements

 

 

 

35,000

 

35,000

 

35,000

 

 

 

Customer repurchase agreements

 

2,421

 

2,181

 

3,056

 

2,084

 

3,049

 

 

 

Federal funds purchased

 

16,105

 

17,010

 

12,830

 

26,690

 

8,670

 

 

 

Subordinated notes

 

68,334

 

68,274

 

68,215

 

4,782

 

 

 

 

Junior subordinated debentures

 

37,797

 

37,755

 

37,713

 

37,670

 

37,626

 

 

 

Other borrowings

 

 

 

 

32,250

 

40,161

 

 

 

Total borrowings

 

$

320,457

 

$

230,953

 

$

282,994

 

$

404,968

 

$

483,635

 

 

 

 


(1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 2.09%.

 

5


 

QCR Holdings, Inc. Consolidated
Financial Highlights
(Unaudited)

 

 

 

For the Quarter Ended

 

 

 

September 30,

 

June 30,

 

March 31

 

December 31,

 

September 30,

 

 

 

2019

 

2019

 

2019

 

2018

 

2018

 

 

 

(dollars in thousands, except per share data)

 

INCOME STATEMENT

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

56,817

 

$

54,181

 

$

52,102

 

$

52,703

 

$

49,831

 

Interest expense

 

16,098

 

16,168

 

15,194

 

13,110

 

11,517

 

Net interest income

 

40,719

 

38,013

 

36,908

 

39,593

 

38,314

 

Provision for loan/lease losses

 

2,012

 

1,941

 

2,134

 

1,611

 

6,206

 

Net interest income after provision for loan/lease losses

 

$

38,707

 

$

36,072

 

$

34,774

 

$

37,982

 

$

32,108

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust department fees

 

$

2,340

 

$

2,361

 

$

2,493

 

$

2,216

 

$

2,196

 

Investment advisory and management fees

 

1,782

 

1,888

 

1,736

 

1,657

 

1,059

 

Deposit service fees

 

1,813

 

1,658

 

1,554

 

1,623

 

1,656

 

Gain on sales of residential real estate loans, net

 

890

 

489

 

369

 

361

 

337

 

Gain on sales of government guaranteed portions of loans, net

 

519

 

39

 

31

 

 

46

 

Swap fee income

 

9,797

 

7,891

 

3,198

 

7,069

 

1,110

 

Securities losses, net

 

(3

)

(52

)

 

 

 

Earnings on bank-owned life insurance

 

489

 

412

 

540

 

341

 

474

 

Debit card fees

 

886

 

914

 

792

 

807

 

846

 

Correspondent banking fees

 

189

 

172

 

216

 

179

 

195

 

Other

 

1,204

 

1,293

 

1,064

 

1,026

 

890

 

Total noninterest income

 

$

19,906

 

$

17,065

 

$

11,993

 

$

15,279

 

$

8,809

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

24,215

 

$

22,749

 

$

20,879

 

$

19,779

 

$

17,433

 

Occupancy and equipment expense

 

3,860

 

3,533

 

3,694

 

3,367

 

3,318

 

Professional and data processing fees

 

4,030

 

3,031

 

2,750

 

3,577

 

2,396

 

Acquisition costs

 

 

 

 

(4

)

1,292

 

Post-acquisition compensation, transition and integration costs

 

884

 

708

 

134

 

1,427

 

494

 

FDIC insurance, other insurance and regulatory fees

 

542

 

926

 

964

 

1,065

 

933

 

Loan/lease expense

 

221

 

312

 

214

 

624

 

369

 

Net cost of (income from) and gains/losses on operations of other real estate

 

2,078

 

1,182

 

298

 

2,477

 

(50

)

Advertising and marketing

 

1,056

 

1,037

 

785

 

1,122

 

984

 

Bank service charges

 

502

 

508

 

483

 

469

 

462

 

Losses on debt extinguishment, net

 

148

 

 

 

 

 

Correspondent banking expense

 

209

 

206

 

204

 

207

 

205

 

Intangibles amortization

 

560

 

615

 

532

 

540

 

542

 

Other

 

1,640

 

1,753

 

1,498

 

1,760

 

2,122

 

Total noninterest expense

 

$

39,945

 

$

36,560

 

$

32,435

 

$

36,410

 

$

30,500

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income before income taxes

 

$

18,668

 

$

16,577

 

$

14,332

 

$

16,851

 

$

10,417

 

Federal and state income tax expense

 

3,573

 

3,073

 

1,414

 

3,535

 

1,608

 

Net income

 

$

15,095

 

$

13,504

 

$

12,918

 

$

13,316

 

$

8,809

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic EPS

 

$

0.96

 

$

0.86

 

$

0.82

 

$

0.85

 

$

0.56

 

Diluted EPS

 

$

0.94

 

$

0.85

 

$

0.81

 

$

0.84

 

$

0.55

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

15,739,430

 

15,714,588

 

15,693,345

 

15,641,401

 

15,625,123

 

Weighted average common and common equivalent shares outstanding

 

15,976,742

 

15,938,377

 

15,922,940

 

15,898,591

 

15,922,324

 

 

6


 

QCR Holdings, Inc. Consolidated
Financial Highlights
(Unaudited)

 

 

 

For the Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2019

 

2018

 

 

 

(dollars in thousands, except per share data)

 

INCOME STATEMENT

 

 

 

 

 

Interest income

 

$

163,099

 

$

130,175

 

Interest expense

 

47,459

 

27,374

 

Net interest income

 

115,640

 

102,801

 

Provision for loan/lease losses

 

6,087

 

11,046

 

Net interest income after provision for loan/lease losses

 

$

109,553

 

$

91,755

 

 

 

 

 

 

 

Trust department fees

 

$

7,194

 

$

6,491

 

Investment advisory and management fees

 

5,406

 

3,069

 

Deposit service fees

 

5,025

 

4,797

 

Gain on sales of residential real estate loans

 

1,748

 

539

 

Gain on sales of government guaranteed portions of loans

 

589

 

405

 

Swap fee income

 

20,886

 

3,718

 

Securities losses, net

 

(56

)

 

Earnings on bank-owned life insurance

 

1,441

 

1,292

 

Debit card fees

 

2,591

 

2,456

 

Correspondent banking fees

 

578

 

673

 

Other

 

3,562

 

2,822

 

Total noninterest income

 

$

48,964

 

$

26,262

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

67,843

 

$

49,215

 

Occupancy and equipment expense

 

11,087

 

9,517

 

Professional and data processing fees

 

9,811

 

8,016

 

Acquisition costs

 

 

1,799

 

Post-acquisition compensation, transition and integration costs

 

1,727

 

659

 

FDIC insurance, other insurance and regulatory fees

 

2,432

 

2,529

 

Loan/lease expense

 

748

 

920

 

Net cost of (income from) and gains/losses on operations of other real estate

 

3,557

 

11

 

Advertising and marketing

 

2,878

 

2,430

 

Bank service charges

 

1,494

 

1,368

 

Losses on debt extinguishment, net

 

148

 

 

Correspondent banking expense

 

619

 

614

 

Intangibles amortization

 

1,706

 

1,151

 

Other

 

4,891

 

4,504

 

Total noninterest expense

 

$

108,941

 

$

82,733

 

 

 

 

 

 

 

Net income before income taxes

 

$

49,576

 

$

35,284

 

Federal and state income tax expense

 

8,059

 

5,480

 

Net income

 

$

41,517

 

$

29,804

 

 

 

 

 

 

 

Basic EPS

 

$

2.64

 

$

2.06

 

Diluted EPS

 

$

2.60

 

$

2.02

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

15,715,788

 

14,477,783

 

Weighted average common and common equivalent shares outstanding

 

15,946,020

 

14,786,777

 

 

7


 

QCR holdings, Inc.

Consolidated Financial highlights

(Unaudited)

 

 

 

As of and for the Quarter Ended

 

For the Nine Months Ended

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

September 30,

 

September 30,

 

 

 

2019

 

2019

 

2019

 

2018

 

2018

 

2019

 

2018

 

 

 

(dollars in thousands, except per share data)

 

COMMON SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

15,790,462

 

15,772,939

 

15,755,442

 

15,718,208

 

15,673,760

 

 

 

 

 

Book value per common share (1)

 

$

32.91

 

$

31.97

 

$

31.00

 

$

30.10

 

$

29.18

 

 

 

 

 

Tangible book value per common share (2)

 

$

27.01

 

$

26.02

 

$

24.98

 

$

24.04

 

$

23.46

 

 

 

 

 

Closing stock price

 

$

37.98

 

$

34.87

 

$

33.92

 

$

32.09

 

$

40.85

 

 

 

 

 

Market capitalization

 

$

599,722

 

$

550,002

 

$

534,425

 

$

504,397

 

$

640,273

 

 

 

 

 

Market price / book value

 

115.40

%

109.06

%

109.42

%

106.61

%

139.98

%

 

 

 

 

Market price / tangible book value

 

140.61

%

134.00

%

135.77

%

133.49

%

174.16

%

 

 

 

 

Earnings per common share (basic) LTM (3)

 

$

3.49

 

$

3.10

 

$

2.99

 

$

2.92

 

$

2.79

 

 

 

 

 

Price earnings ratio LTM (3)

 

10.88 x

 

11.25 x

 

11.34 x

 

10.98 x

 

14.64 x

 

 

 

 

 

TCE/ TA (4)

 

8.20

%

8.05

%

7.92

%

7.78

%

7.82

%

 

 

 

 

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

504,300

 

$

488,407

 

$

473,138

 

$

457,387

 

$

369,588

 

 

 

 

 

Net income

 

15,095

 

13,504

 

12,918

 

13,316

 

8,809

 

 

 

 

 

Other comprehensive income (loss), net of tax

 

543

 

2,243

 

2,343

 

1,943

 

(612

)

 

 

 

 

Common stock cash dividends declared

 

(944

)

(942

)

(942

)

(939

)

(938

)

 

 

 

 

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)

 

749

 

1,088

 

950

 

431

 

477

 

 

 

 

 

Ending balance

 

$

519,743

 

$

504,300

 

$

488,407

 

$

473,138

 

$

457,387

 

 

 

 

 

REGULATORY CAPITAL RATIOS (6):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total risk-based capital ratio

 

11.93

%

12.04

%

12.26

%

10.69

%

10.87

%

 

 

 

 

Tier 1 risk-based capital ratio

 

9.70

%

9.76

%

9.87

%

9.77

%

9.83

%

 

 

 

 

Tier 1 leverage capital ratio

 

9.02

%

8.96

%

8.90

%

8.87

%

8.87

%

 

 

 

 

Common equity tier 1 ratio

 

8.91

%

8.93

%

9.02

%

8.89

%

8.92

%

 

 

 

 

KEY PERFORMANCE RATIOS AND OTHER METRICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets (annualized)

 

1.16

%

1.06

%

1.04

%

1.10

%

0.75

%

1.09

%

0.94

%

Return on average total equity (annualized)

 

11.70

%

10.84

%

10.71

%

11.42

%

8.08

%

11.09

%

10.30

%

Net interest margin

 

3.37

%

3.25

%

3.25

%

3.48

%

3.46

%

3.29

%

3.45

%

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

 

3.52

%

3.40

%

3.40

%

3.63

%

3.60

%

3.43

%

3.59

%

Efficiency ratio (Non-GAAP) (8)

 

65.89

%

66.38

%

66.33

%

66.35

%

64.72

%

66.18

%

64.10

%

Gross loans and leases / total assets (10)

 

74.80

%

75.28

%

74.99

%

75.41

%

76.23

%

74.80

%

76.23

%

Gross loans and leases / total deposits (10)

 

94.95

%

90.47

%

90.59

%

93.86

%

96.44

%

94.95

%

96.44

%

Effective tax rate

 

19.14

%

18.54

%

9.87

%

20.98

%

15.44

%

16.26

%

15.53

%

Full-time equivalent employees (9)

 

766

 

773

 

771

 

755

 

728

 

766

 

728

 

AVERAGE BALANCES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

$

5,217,763

 

$

5,077,900

 

$

4,968,502

 

$

4,842,232

 

$

4,677,875

 

$

5,088,055

 

$

4,242,083

 

Loans/leases

 

3,962,464

 

3,839,674

 

3,759,615

 

3,699,885

 

3,612,648

 

3,853,918

 

3,236,514

 

Deposits

 

4,302,995

 

4,271,391

 

4,110,868

 

3,986,236

 

3,840,077

 

4,228,418

 

3,474,213

 

Total stockholders’ equity

 

516,195

 

498,263

 

482,423

 

466,271

 

436,065

 

498,960

 

385,874

 

 


(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, Inc., the acquisition of the Bates Companies and the addition of several new positions created to build scale.

(10)  Excludes assets held for sale as of September 30, 2019.

 

8


 

QCR Holdings, Inc. Consolidated

Financial Highlights
(Unaudited)

 

ANALYSIS OF NET INTEREST INCOME AND MARGIN (4)

 

 

 

For the Quarter Ended

 

 

 

September 30, 2019

 

June 30, 2019

 

September 30, 2018

 

 

 

 

 

Interest

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

 

 

 

Average

 

Earned or

 

Average

 

Average

 

Interest

 

Average

 

Average

 

Earned or

 

Average

 

 

 

Balance

 

Paid

 

Yield or Cost

 

Balance

 

Earned or Paid

 

Yield or Cost

 

Balance

 

Paid

 

Yield or Cost

 

 

 

(dollars in thousands)

 

Fed funds sold

 

$

7,234

 

$

42

 

2.30

%

$

9,690

 

$

56

 

2.32

%

$

23,199

 

$

105

 

1.80

%

Interest bearing deposits at financial institutions

 

172,386

 

951

 

2.19

%

182,651

 

1,168

 

2.56

%

61,815

 

323

 

2.07

%

Securities (1)

 

626,471

 

6,080

 

3.85

%

644,999

 

6,062

 

3.77

%

667,142

 

5,973

 

3.55

%

Restricted investment securities

 

22,719

 

293

 

5.12

%

21,007

 

290

 

5.54

%

22,683

 

330

 

5.77

%

Loans (1)

 

3,962,464

 

51,214

 

5.13

%

3,839,674

 

48,413

 

5.06

%

3,612,648

 

44,648

 

4.90

%

Total earning assets (1)

 

$

4,791,274

 

$

58,580

 

4.85

%

$

4,698,021

 

$

55,989

 

4.78

%

$

4,387,487

 

$

51,379

 

4.65

%

Interest-bearing deposits

 

$

2,505,383

 

$

7,907

 

1.25

%

$

2,461,768

 

$

8,271

 

1.35

%

$

2,214,480

 

$

5,432

 

0.97

%

Time deposits

 

975,736

 

5,486

 

2.23

%

1,013,391

 

5,554

 

2.20

%

825,020

 

3,290

 

1.58

%

Short-term borrowings

 

17,333

 

98

 

2.24

%

16,145

 

81

 

2.01

%

21,407

 

78

 

1.45

%

Federal Home Loan Bank advances

 

123,107

 

1,023

 

3.30

%

76,154

 

601

 

3.17

%

209,111

 

1,422

 

2.70

%

Other borrowings

 

 

 

0.00

%

10,550

 

92

 

3.50

%

74,503

 

776

 

4.13

%

Subordinated debentures

 

68,299

 

1,003

 

5.83

%

68,239

 

993

 

5.84

%

 

 

0.00

%

Junior subordinated debentures

 

37,774

 

581

 

6.10

%

37,731

 

576

 

6.12

%

37,600

 

519

 

5.48

%

Total interest-bearing liabilities

 

$

3,727,632

 

$

16,098

 

1.71

%

$

3,683,978

 

$

16,168

 

1.76

%

$

3,382,121

 

$

11,517

 

1.35

%

Net interest income / spread (1)

 

 

 

$

42,482

 

3.14

%

 

 

$

39,821

 

3.02

%

 

 

$

39,862

 

3.30

%

Net interest margin (2)

 

 

 

 

 

3.37

%

 

 

 

 

3.25

%

 

 

 

 

3.46%

 

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

 

 

 

 

 

3.52

%

 

 

 

 

3.40

%

 

 

 

 

3.60

%

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

 

 

 

 

 

3.41

%

 

 

 

 

3.31

%

 

 

 

 

3.45%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended

 

 

 

 

 

 

 

 

 

September 30, 2019

 

September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

 

Earned or

 

Average

 

Average

 

Interest

 

Average

 

 

 

 

 

 

 

 

 

Balance

 

Paid

 

Yield or Cost

 

Balance

 

Earned or Paid

 

Yield or Cost

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

Fed funds sold

 

$

10,887

 

$

191

 

2.35

%

$

20,488

 

$

223

 

1.46

%

 

 

 

 

 

 

Interest-bearing deposits at financial institutions

 

170,167

 

3,042

 

2.39

%

55,408

 

749

 

1.81

%

 

 

 

 

 

 

Securities (1)

 

643,975

 

18,237

 

3.79

%

654,818

 

17,391

 

3.55

%

 

 

 

 

 

 

Restricted investment securities

 

21,670

 

891

 

5.50

%

21,871

 

776

 

4.74

%

 

 

 

 

 

 

Loans (1)

 

3,853,918

 

145,682

 

5.05

%

3,236,514

 

115,365

 

4.77

%

 

 

 

 

 

 

Total earning assets (1)

 

$

4,700,617

 

$

168,043

 

4.78

%

$

3,989,099

 

$

134,504

 

4.51

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

 

$

2,418,420

 

$

23,351

 

1.29

%

$

1,987,371

 

$

12,541

 

0.84

%

 

 

 

 

 

 

Time deposits

 

1,000,529

 

16,346

 

2.18

%

702,441

 

7,591

 

1.44

%

 

 

 

 

 

 

Short-term borrowings

 

15,952

 

275

 

2.30

%

19,234

 

186

 

1.29

%

 

 

 

 

 

 

Federal Home Loan Bank advances

 

115,539

 

2,685

 

3.11

%

206,875

 

3,267

 

2.11

%

 

 

 

 

 

 

Other borrowings

 

18,084

 

512

 

3.79

%

68,742

 

2,315

 

4.50

%

 

 

 

 

 

 

Subordinated debentures

 

58,392

 

2,561

 

5.86

%

 

 

0.00

%

 

 

 

 

 

 

Junior subordinated debentures

 

37,730

 

1,729

 

6.13

%

37,556

 

1,474

 

5.25

%

 

 

 

 

 

 

Total interest-bearing liabilities

 

$

3,664,646

 

$

47,459

 

1.73

%

$

3,022,219

 

$

27,374

 

1.21

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income / spread (1)

 

 

 

$

120,584

 

3.05

%

 

 

$

107,130

 

3.30

%

 

 

 

 

 

 

Net interest margin (2)

 

 

 

 

 

3.29

%

 

 

 

 

3.45

%

 

 

 

 

 

 

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

 

 

 

 

 

3.43

%

 

 

 

 

3.59

%

 

 

 

 

 

 

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

 

 

 

 

 

3.33

%

 

 

 

 

3.49

%

 

 

 

 

 

 

 


(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.

(4)        Interest earning assets and interest bearing liabilities classified as held for sale as of September 30, 2019 are included in the calculations above.

 

9


 

QCR Holdings, Inc. Consolidated
Financial Highlights
(Unaudited)

 

 

 

As of

 

 

 

September 30,

 

June 30,

 

March 31,

 

December 31,

 

September 30,

 

 

 

2019

 

2019

 

2019

 

2018

 

2018

 

 

 

(dollars in thousands, except per share data)

 

ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES

 

 

 

 

 

 

 

 

 

 

 

Beginning balance

 

$

41,104

 

$

41,164

 

$

39,847

 

$

43,077

 

$

37,545

 

Allowance related to held for sale loans

 

(6,062

)

 

 

 

 

Provision charged to expense (2)

 

1,524

 

1,941

 

2,134

 

1,611

 

6,206

 

Loans/leases charged off

 

(739

)

(2,152

)

(1,059

)

(4,967

)

(991

)

Recoveries on loans/leases previously charged off

 

289

 

151

 

242

 

126

 

317

 

Ending balance

 

$

36,116

 

$

41,104

 

$

41,164

 

$

39,847

 

$

43,077

 

 

 

 

 

 

 

 

 

 

 

 

 

NONPERFORMING ASSETS

 

 

 

 

 

 

 

 

 

 

 

Nonaccrual loans/leases

 

$

8,231

 

$

13,148

 

$

13,406

 

$

14,260

 

$

23,576

 

Accruing loans/leases past due 90 days or more

 

 

58

 

61

 

632

 

1,410

 

Troubled debt restructures - accruing

 

763

 

1,313

 

3,794

 

3,659

 

4,240

 

Total nonperforming loans/leases

 

8,994

 

14,519

 

17,261

 

18,551

 

29,226

 

Other real estate owned

 

4,248

 

8,637

 

9,110

 

9,378

 

12,204

 

Other repossessed assets

 

 

 

 

8

 

150

 

Total nonperforming assets

 

$

13,242

 

$

23,156

 

$

26,371

 

$

27,937

 

$

41,580

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY RATIOS

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets / total assets (3)

 

0.27

%

0.45

%

0.52

%

0.56

%

0.87

%

Allowance / total loans/leases (1)

 

1.00

%

1.05

%

1.08

%

1.07

%

1.18

%

Allowance / nonperforming loans/leases (1)

 

401.56

%

283.10

%

238.48

%

214.80

%

147.39

%

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

 

0.01

%

0.05

%

0.02

%

0.13

%

0.02

%

 


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

(2)    Excludes provision related to loans included in assets held for sale of $488 thousand for the quarter ending September 30, 2019.

(3)    Excludes assets held for sale as of September 30, 2019.

 

10


 

QCR Holdings, Inc. Consolidated
Financial Highlights
(Unaudited)

 

 

 

For the Quarter Ended

 

For the Nine Months Ended

 

 

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

SELECT FINANCIAL DATA - SUBSIDIARIES

 

2019

 

2019

 

2018

 

2019

 

2018

 

 

 

(dollars in thousands)