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Press Release

QCR Holdings, Inc. Announces Third Quarter Earnings and Successful Closing of Des Moines Acquisition

Company Release - 10/27/2016 4:30 PM ET

MOLINE, Ill., Oct. 27, 2016 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ:QCRH) today announced net income of $6.1 million and diluted earnings per share (“EPS”) of $0.46 for the quarter ended September 30, 2016.  This included $1.5 million of acquisition costs (after-tax) related to the previously announced acquisition of Community State Bank (“CSB”).  Excluding these acquisition costs and other non-core items, the Company reported core net income (non-GAAP) of $7.5 million and diluted EPS of $0.57.  By comparison, for the quarter ended June 30, 2016, the Company reported net income of $6.7 million and diluted EPS of $0.53.  This included $231 thousand of acquisition costs (after-tax) related to CSB.  For the third quarter of 2015, the Company reported net income of $6.5 million and diluted EPS of $0.55.

For the nine months ended September 30, 2016, the Company reported net income of $19.2 million and diluted EPS of $1.52.  Excluding acquisition costs and other non-core items, the Company reported core net income (non-GAAP) of $20.6 million and diluted EPS of $1.64.  By comparison, for the nine months ended September 30, 2015, the Company reported net income of $10.1 million and diluted EPS of $1.01.  This included several nonrecurring items, including $4.5 million of losses on debt extinguishments (after-tax) related to the balance sheet restructuring that took place in the second quarter of 2015.

“Our core operating performance for the first nine months of 2016 has been solid,” commented Douglas M. Hultquist, President and Chief Executive Officer, “and we continue to strategize and explore ways to improve our profitability through our ongoing key initiatives.  Our core return on average assets (non-GAAP) has improved from 0.77% to 1.02%, when comparing the first nine months of 2015 to the same period of the current year.  This is the result of solid loan growth, reductions in wholesale borrowings, continued margin improvements, and strong fee income.”

Organic Loan and Lease Growth Strong at 10.6% Annualized Year-To-Date
Swap Fee Income and Gains on the Sale of Government Guaranteed Loans Total $4.1 Million Year-To-Date

During the third quarter of 2016, the Company’s total assets increased $597.6 million, or 22%, to a total of $3.28 billion, while total loans and leases grew $437.8 million.  Of the $437.8 million of loan growth, $419.5 million related to the acquisition of CSB, while the remaining $18.3 million was organic growth.  The organic loan and lease growth was funded primarily by deposits, which increased $140.1 million in the third quarter, excluding the acquisition of CSB.  This deposit growth also allowed the Company to further reduce borrowings.

“Loan and lease growth, excluding the effects of the acquisition, totaled $143.1 million, or an annualized rate of 10.6%, for the first nine months of the year,” commented Todd A. Gipple, Executive Vice President, Chief Operating Officer and Chief Financial Officer.  “Strong loan and lease growth has helped us meet our targeted annual organic growth rate of 10-12% and continues to keep our loan and leases to asset ratio within our targeted range of 70-75%.”

“Swap fee income and gains on the sale of government guaranteed loans were strong for the first nine months of 2016, totaling $4.1 million,” said Mr. Gipple.  “We plan to continue executing these types of transactions, as they provide unique and beneficial solutions for our clients.  We also look forward to offering these products in our newest market, Des Moines/Ankeny.”

Net Interest Margin Expanded 9 Basis Points in Third Quarter

Net interest income totaled $23.6 million for the quarter ended September 30, 2016.  By comparison, net interest income totaled $21.0 million and $20.1 million for the quarters ended June 30, 2016 and September 30, 2015, respectively.  Net interest income totaled $65.2 million for the nine months ended September 30, 2016, an increase of 15.6% from the same period of the prior year.  Net interest income attributable to CSB totaled $2.3 million for the partial quarter.

“Net interest margin increased nine basis points from the prior quarter to 3.71%,” stated Mr. Gipple.  He added, “The improvement in margin this quarter was attributable to the addition of Community State Bank.  CSB’s strong margin and solid earnings will contribute significantly to our efforts to achieve upper-quartile ROAA performance and continue to drive shareholder value.  For the month of September 2016, CSB had $546.0 million in average earning assets with a net interest margin of 4.99%.  CSB’s net interest margin prior to acquisition typically ranged from 3.80% to 4.00%.  This has increased due to purchase accounting adjustments, primarily the accretion of the loan discount, including the acceleration of discounts related to the payoff of purchased credit impaired loans.”

Nonperforming Assets to Total Assets Ratio Flat During the Third Quarter

Nonperforming assets (“NPAs”) increased $3.8 million in the current quarter, which was due to the acquisition of CSB.  The ratio of NPAs to total assets was 0.69% at September 30, 2016, which was down from 0.70% at June 30, 2016 and down from 0.80% a year ago. 

“Asset quality at our newest charter, CSB, is strong and very much in line with the rest of our subsidiaries, resulting in a slight reduction of our NPAs to total assets ratio this quarter.  We remain committed to further improving asset quality,” stated Mr. Hultquist. 

The Company’s provision for loan and lease losses totaled $1.6 million for the third quarter of 2016, which was up $410 thousand from the prior quarter, and flat as compared to the third quarter of 2015.  The increase in provision in the third quarter of 2016 is primarily attributable to the addition of CSB.  As of September 30, 2016, the Company’s allowance to total loans and leases was 1.22%, which was down from 1.46% at June 30, 2016 and down from 1.45% at September 30, 2015. 

In accordance with generally accepted accounting principles for acquisition accounting, the loans acquired through the acquisition of CSB were recorded at market value; therefore, there was no allowance associated with CSB’s loans at acquisition.  Management continues to evaluate the allowance needed on the acquired CSB loans factoring in the net remaining discount ($12.7 million at September 30, 2016).  When factoring this remaining discount into the Company’s allowance to total loans and leases calculation, the Company’s allowance as a percentage of total loans and leases increases from 1.22% to 1.76%.

Capital Levels Remain Strong

The Company’s total risk-based capital ratio was 11.45%, the common equity tier 1 ratio was 9.32% and the tangible common equity to tangible assets ratio decreased to 7.92%, all as of September 30, 2016.  For comparison, these respective ratios were 14.29%, 11.72% and 10.10% as of June 30, 2016.  The decrease in the Company’s capital ratios was primarily due to the acquisition of CSB.

Acquisition of Community State Bank, Headquartered in Des Moines/Ankeny, Iowa

“We are excited about adding such a talented team to the Company and are encouraged by the opportunity for strong growth in Ankeny and the entire Des Moines MSA,” stated Mr. Gipple.

As of September 30, 2016, CSB had total assets of $580.2 million, consisting primarily of loans totaling $419.5 million and a securities portfolio of $90.2 million.  These assets were funded by $481.3 million of deposits and $15.3 million of borrowings.  CSB reported net income for the partial quarter of $189 thousand, which included $473 thousand of after tax acquisition costs.    

Preliminary purchase accounting adjustments were recorded in the third quarter and the resulting accounting marks and the net dilution to tangible book value per share were more favorable than projected when the Company announced the CSB transaction in May of 2016.

Actual dilution to tangible book value per share from the transaction, including the common stock issuance of $30.1 million in May of 2016, was only $1.03 per share, or 4.91%.  This compares favorably to the $1.25 per share and 6.11% dilution that was projected.

“The terms of the transaction required CSB to retain its earnings through the closing date.  Due to better than projected CSB earnings and more favorable valuation marks, our earn-back on the tangible book value dilution from the transaction should be even more rapid than the three year earn-back we cited in our transaction announcement this past May,” stated Mr. Gipple.

Significant One-Time Gain Used to Further Restructure Balance Sheet
And Strengthen Net Interest Margin

This quarter, the Company had the opportunity to sell an investment and recognize a gain of approximately $4.0 million.  This gain was utilized to further reduce wholesale borrowings by $60 million at a blended rate of 3.24% and further de-lever the balance sheet with the sale of $28 million in securities yielding 1.48%.  The remaining funding was replaced by a mix of core deposits and overnight borrowings.  These transactions were recorded near the end of the quarter.  The positive impact on future earnings will be an increase in net interest income of approximately $1.3 million annually, increasing NIM by approximately 10 basis points. 

Filing of Form S-3 Shelf Registration Statement

The Company today filed a universal shelf registration statement on Form S-3 with the Securities and Exchange Commission ("SEC").  When declared effective by the SEC, the registration statement will allow QCR Holdings, Inc. to offer and sell various types of securities, including common stock, preferred stock, debt securities and/or warrants, from time to time up to an aggregate amount of $100 million.  The Company utilized $30.1 million of its previous shelf registration filing through the offer and sale of its common stock in the second quarter of 2016 to help fund the acquisition of CSB.  This Form S-3 filing will replenish the amount available to the previous $100 million.  The specific terms and prices of any securities offered pursuant to the registration statement will be determined at the time of any future offering and described in a separate prospectus supplement, which would be filed with the SEC at the time of the particular offering, if any.

About Us

QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company, which serves the Quad City, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, and Rockford communities through its wholly owned subsidiary banks.  Quad City Bank & Trust Company, which is based in Bettendorf, Iowa, and commenced operations in 1994, Cedar Rapids Bank & Trust Company, which is based in Cedar Rapids, Iowa, and commenced operations in 2001, Community State Bank, which is based in Ankeny, Iowa and was acquired by the Company in 2016, and Rockford Bank & Trust Company, which is based in Rockford, Illinois, and commenced operations in 2005, provide full-service commercial and consumer banking and trust and wealth management services.  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.

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, 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, including the Basel III regulatory capital reforms, the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations issued thereunder; (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 (including the acquisition of CSB), 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 SEC.

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
  
 As of
 September 30, June 30, March 31, December 31, September 30,
 
 2016 2016 2016 2015 2015 
         
 (dollars in thousands)
CONDENSED BALANCE SHEET                
                 
Cash and due from banks $61,213 $49,581 $44,931 $41,742 $40,975 
Federal funds sold and interest-bearing deposits  96,047  68,432  57,229  56,164  66,684 
Securities  564,930  510,959  537,317  577,109  590,775 
Net loans/leases  2,331,774  1,894,676  1,846,428  1,771,882  1,730,138 
Core deposit intangible  7,614  1,372  1,422  1,471  1,521 
Goodwill  13,632  3,223  3,223  3,223  3,223 
Other intangible assets  1,509  -  -  -  - 
Other assets  204,267  155,191  150,123  141,607  142,539 
Total assets $   3,280,986  $   2,683,434  $   2,640,673  $   2,593,198  $   2,575,855  
      
Total deposits $2,594,913 $1,973,594 $1,989,573 $1,880,666 $1,855,319 
Total borrowings  312,104  381,874  347,901  444,162  456,091 
Other liabilities  93,112  52,849  68,056  42,484  43,330 
Total stockholders' equity  280,857  275,117  235,143  225,886  221,115 
Total liabilities and stockholders' equity $   3,280,986  $   2,683,434  $   2,640,673  $   2,593,198  $   2,575,855  
                 
ANALYSIS OF LOAN PORTFOLIO                
Loan/lease mix:                
Commercial and industrial loans $804,308 $706,261 $682,057 $648,160 $647,398 
Commercial real estate loans  1,070,305  784,379  766,159  724,369  692,569 
Direct financing leases  166,924  169,928  172,774  173,656  173,304 
Residential real estate loans  229,081  180,482  173,096  170,433  165,061 
Installment and other consumer loans  81,918  73,658  71,842  73,669  69,863 
Deferred loan/lease origination costs, net of fees  8,065  8,065  7,895  7,736  7,477 
Total loans/leases $2,360,601 $1,922,773 $1,873,823 $1,798,023 $1,755,672 
Less allowance for estimated losses on loans/leases  28,827  28,097  27,395  26,141  25,534 
Net loans/leases $   2,331,774  $   1,894,676  $   1,846,428  $   1,771,882  $   1,730,138  
      
ANALYSIS OF SECURITIES PORTFOLIO     
Securities mix:     
U.S. government sponsored agency securities $67,885 $88,321 $132,742 $213,537 $247,625 
Municipal securities  360,330  302,689  285,009  280,203  265,293 
Residential mortgage-backed and related securities  133,173  116,765  116,452  80,670  74,901 
Other securities  3,542  3,184  3,114  2,699  2,956 
Total securities $   564,930  $   510,959  $   537,317  $   577,109  $   590,775  
      
ANALYSIS OF DEPOSITS     
Deposit mix:     
Noninterest-bearing demand deposits $764,615 $615,764 $641,859 $615,292 $585,300 
Interest-bearing demand deposits  1,298,781  918,036  916,455  886,294  877,642 
Time deposits  420,470  337,584  331,786  309,974  302,978 
Brokered deposits  111,047  102,210  99,473  69,106  89,399 
Total deposits $   2,594,913  $   1,973,594  $   1,989,573  $   1,880,666  $   1,855,319  
      
ANALYSIS OF BORROWINGS     
Borrowings mix:     
Term FHLB advances $83,343 $78,000 $80,000 $97,000 $102,000 
Overnight FHLB advances (1)  55,300  118,900  70,500  54,000  31,000 
Wholesale structured repurchase agreements  45,000  100,000  100,000  110,000  115,000 
Customer repurchase agreements  8,265  21,441  52,153  73,873  74,404 
Federal funds purchased  51,750  30,120  11,870  70,790  93,160 
Junior subordinated debentures  33,446  33,413  33,378  38,499  40,527 
Other borrowings  35,000  -  -  -  - 
Total borrowings $   312,104  $   381,874  $   347,901  $   444,162  $   456,091  
      
(1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 0.44%
      

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
      
   For the Nine Months Ended
   September 30, September 30,
   2016 2015
      
   (dollars in thousands, except per share data)
      
INCOME STATEMENT     
Interest income  $74,232  $67,093 
Interest expense   8,995   10,683 
Net interest income   65,237   56,410 
Provision for loan/lease losses   4,879   5,694 
Net interest income after provision for loan/lease losses  $   60,358   $   50,716  
      
Trust department fees  $4,607  $4,676 
Investment advisory and management fees   2,117   2,251 
Deposit service fees   3,029   2,790 
Gain on sales of residential real estate loans   289   266 
Gain on sales of government guaranteed portions of loans   2,701   900 
Swap fee income   1,358   1,183 
Securities gains, net   4,628   473 
Earnings on bank-owned life insurance   1,324   1,319 
Debit card fees   1,127   912 
Correspondent banking fees   801   916 
Participation service fees on commercial loan participations   694   648 
Fee income from early termination of leases   173   251 
Credit card issuing fees   413   404 
Other   747   1,162 
Total noninterest income  $   24,008   $   18,151  
      
Salaries and employee benefits  $32,921  $32,710 
Occupancy and equipment expense   5,798   5,508 
Professional and data processing fees   4,921   4,683 
Acquisition costs   2,401   - 
FDIC insurance, other insurance and regulatory fees   1,867   2,152 
Loan/lease expense   420   602 
Net cost of operation of other real estate   513   (1,090)
Advertising and marketing   1,367   1,368 
Postage and communications   711   684 
Stationery and supplies   491   424 
Bank service charges   1,247   1,089 
Losses on debt extinguishment, net   4,220   6,894 
Correspondent banking expense   565   518 
Other   1,737   1,776 
Total noninterest expense  $   59,179   $   57,318  
      
Net income before taxes  $   25,187   $   11,549  
Income tax expense   6,030   1,406 
Net income  $   19,157   $   10,143  
      
Basic EPS  $1.55  $1.03 
Diluted EPS  $1.52  $1.01 
      
Weighted average common shares outstanding   12,398,491   9,878,882 
Weighted average common and common equivalent shares outstanding   12,580,042   10,024,441 
      

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
        
   For the Quarter Ended
   September 30,June 30,March 31,December 31,September 30,
   20162016201620152015
        
   (dollars in thousands, except per share data)
        
INCOME STATEMENT      
Interest income $26,817 $23,913 $23,502 $22,910 $23,141 
Interest expense  3,186  2,904  2,905  3,024  3,004 
Net interest income  23,631  21,009  20,597  19,886  20,137 
Provision for loan/lease losses  1,608  1,198  2,073  1,177  1,635 
Net interest income after provision for loan/lease losses $   22,023  $   19,811  $   18,524  $   18,709  $   18,502  
        
        
Trust department fees $1,519 $1,512 $1,576 $1,455 $1,532 
Investment advisory and management fees  766  693  658  721  782 
Deposit service fees  1,151  947  931  1,003  985 
Gain on sales of residential real estate loans  144  84  60  57  85 
Gain on sales of government guaranteed portions of loans  219  1,604  879  405  760 
Swap fee income  334  168  857  535  63 
Securities gains, net  4,252  18  358  325  57 
Earnings on bank-owned life insurance  450  480  394  443  407 
Debit card fees  475  344  308  290  333 
Correspondent banking fees  254  245  302  275  311 
Participation service fees on commercial loan participations  237  246  211  218  202 
Fee income from early termination of leases  95  66  12  46  89 
Credit card issuing fees  137  139  137  134  134 
Lawsuit settlement  -  -  -  -  387 
Other   390  216  139  271  276 
Total noninterest income $   10,423  $   6,762  $   6,822  $   6,178  $   6,403  
        
        
Salaries and employee benefits $11,202 $10,917 $10,801 $10,258 $10,583 
Occupancy and equipment expense  2,086  1,885  1,827  1,535  1,864 
Professional and data processing fees  1,931  1,542  1,447  840  1,742 
Acquisition costs  2,046  355  -  -  - 
FDIC insurance, other insurance and regulatory fees  583  650  634  573  702 
Loan/lease expense  103  154  163  281  91 
Net cost of operation of other real estate  133  278  102  (4) (1,118)
Advertising and marketing  548  433  386  532  460 
Postage and communications  238  257  217  252  221 
Stationery and supplies  168  158  165  171  145 
Bank service charges  415  415  416  396  392 
Losses on debt extinguishment, net  4,137  -  83  291  - 
Correspondent banking expense  206  182  177  186  177 
Other   684  518  536  528  688 
Total noninterest expense $   24,480  $   17,744  $   16,954  $   15,839  $   15,947  
        
Net income before taxes $   7,966  $   8,829  $   8,392  $   9,048  $   8,958  
Income tax expense  1,858  2,153  2,019  2,263  2,469 
Net income  $   6,108  $   6,676  $   6,373  $   6,785  $   6,489  
        
Basic EPS $0.47 $0.54 $0.54 $0.58 $0.55 
Diluted EPS $0.46 $0.53 $0.53 $0.57 $0.55 
        
Weighted average common shares outstanding  13,066,777  12,335,077  11,793,620  11,744,495  11,713,993 
Weighted average common and common equivalent shares outstanding 13,269,703  12,516,474  11,953,949  11,926,038  11,875,930 
        

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
         
 For the Quarter Ended For the Nine Months Ended
 September 30,June 30,March 31,December 31,September 30, September 30,September 30,
 20162016201620152015 20162015
                        
 (dollars in thousands, except per share data)
 
COMMON SHARE DATA        
Common shares outstanding 13,075,307  13,057,368  11,814,911  11,761,083  11,728,911    
Book value per common share (1)$21.48 $21.07 $19.90 $19.21 $18.85    
Tangible book value per common share (2)$19.74 $20.72 $19.51 $18.81 $18.45    
Closing stock price$31.74 $27.19 $23.79 $24.29 $21.87    
Market capitalization$415,010 $355,030 $281,077 $285,677 $256,511    
Market price / book value 147.77% 129.05% 119.53% 126.47% 116.01%   
Market price / tangible book value 160.79% 131.24% 121.94% 129.15% 118.55%   
Earnings per common share (basic) LTM (3)$2.13 $2.21 $1.62 $1.64 $1.40    
Price earnings ratio LTM (3)14.90 x12.30 x14.69 x14.81 x15.62 x   
TCE / TA (4) 7.92% 10.10% 8.74% 8.55% 8.42%   
         
         
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY    
Beginning balance$275,117 $235,143 $225,886 $221,115 $211,697    
Net income 6,108  6,676  6,373  6,785  6,489    
Other comprehensive income (loss), net of tax (361) 1,181  2,525  (2,287) 2,256    
Common cash dividends declared (521) (521) (471) (469) -    
Proceeds from issuance of 1,215,000 shares of common stock, net of costs -  29,829  -  -  -    
Other (5) 514  2,809  830  742  673    
Ending balance$   280,857  $   275,117  $   235,143  $   225,886  $   221,115     
         
         
REGULATORY CAPITAL RATIOS (6):        
Total risk-based capital ratio 11.45% 14.29% 12.68% 13.11% 13.06%   
Tier 1 risk-based capital ratio 10.40% 13.04% 11.45% 11.88% 11.83%   
Tier 1 leverage capital ratio 10.09% 11.18% 9.85% 9.75% 9.73%   
Common equity tier 1 ratio 9.32% 11.72% 10.11% 10.33% 10.16%   
         
         
KEY PERFORMANCE RATIOS AND OTHER METRICS        
Return on average assets (annualized) 0.85% 1.01% 0.98% 1.04% 1.01%  0.94%  0.53%
Return on average total equity (annualized) 8.78% 10.46% 11.02% 12.14% 11.99%  10.02%  7.43%
Net interest margin (TEY) (7) 3.71% 3.62% 3.59% 3.41% 3.51%  3.65%  3.37%
Efficiency ratio 71.89% 63.89% 61.83% 61.22% 61.88%  66.31%  77.32%
Gross loans and leases / total assets 71.95% 71.65% 70.96% 69.34% 68.16%  71.95%  68.16%
Full-time equivalent employees (8) 572  410  406  406  406   572   406 
         
         
AVERAGE BALANCES         
Assets$2,865,947 $2,640,678 $2,602,350 $2,611,276 $2,563,739  $2,702,992  $2,529,469 
Loans/leases 2,077,376  1,899,932  1,833,950  1,764,275  1,744,043   1,937,086   1,688,605 
Deposits 2,243,397  2,033,116  1,980,056  1,978,737  1,881,604   2,085,524   1,809,199 
Total stockholders' equity 278,369  255,391  231,247  223,553  216,453   255,002   182,134 
         
(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. 
(8) Full-time equivalent employees increased by 162 in the current quarter due to the acquisition of Community State Bank.
 

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
             
ANALYSIS OF NET INTEREST INCOME AND MARGIN
                        
                               
  For the Quarter Ended
  September 30, 2016 June 30, 2016 September 30, 2015
  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)
             
Fed funds sold $17,685 $13  0.29% $14,174 $11  0.31% $22,435 $8  0.14%
Interest-bearing deposits at financial institutions  67,807  103  0.60%  50,747  62  0.49%  51,380  67  0.52%
Securities (1)  525,417  4,826  3.65%  505,697  4,573  3.64%  591,538  4,683  3.14%
Restricted investment securities  14,877  132  3.53%  14,171  134  3.80%  14,224  127  3.54%
Loans (1)  2,077,376  23,330  4.47%  1,899,932  20,497  4.34%  1,744,043  19,564  4.45%
Total earning assets (1) $2,703,162 $28,404  4.18% $2,484,721 $25,277  4.09% $2,423,620 $24,449  4.00%
             
Interest-bearing deposits $1,116,325 $717  0.26% $941,856 $600  0.26% $822,178 $465  0.22%
Time deposits  422,603  755  0.71%  425,216  744  0.70%  414,396  675  0.65%
Short-term borrowings  30,208  12  0.16%  50,122  18  0.14%  147,880  64  0.17%
Federal Home Loan Bank advances  118,564  421  1.41%  128,956  416  1.30%  131,343  537  1.62%
Junior subordinated debentures  33,430  306  3.64%  33,396  302  3.64%  40,510  317  3.10%
Other borrowings  116,856  975  3.32%  100,008  824  3.31%  115,017  945  3.26%
Total interest-bearing liabilities $1,837,986 $3,186  0.69% $1,679,554 $2,904  0.70% $1,671,324 $3,003  0.71%
             
Net interest income / spread (1)  $25,218  3.49%  $22,373  3.39%  $21,446  3.29%
Net interest margin (1)    3.71%    3.62%    3.51%
             
             
  For the Nine Months Ended    
  September 30, 2016 September 30, 2015  
  Average
Balance
Interest
Earned or Paid
Average Yield
or Cost
 Average
Balance
Interest
Earned or Paid
Average
Yield or Cost
    
                         
  (dollars in thousands)    
             
Fed funds sold $16,364 $36  0.29% $18,549 $18  0.13%    
Interest-bearing deposits at financial institutions  53,063  226  0.57%  55,528  208  0.50%    
Securities (1)  527,162  14,084  3.57%  608,687  13,725  3.01%    
Restricted investment securities  14,396  396  3.67%  15,083  378  3.35%    
Loans (1)  1,937,085  63,784  4.40%  1,688,605  56,452  4.47%    
Total earning assets (1) $2,548,070 $78,526  4.12% $2,386,452 $70,781  3.97%    
             
Interest-bearing deposits $994,476 $1,931  0.26% $797,892 $1,357  0.23%    
Time deposits  415,808  2,175  0.70%  391,218  1,939  0.66%    
Short-term borrowings  55,623  74