About QCBT

Press Release

QCR Holdings, Inc. Announces Net Income of $8.8 Million for the Second Quarter of 2017 And $18.0 Million Year-to-Date

Company Release - 7/20/2017 4:01 PM ET

MOLINE, Ill., July 20, 2017 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ:QCRH) today announced net income of $8.8 million and diluted earnings per share (“EPS”) of $0.65 for the quarter ended June 30, 2017.  By comparison, for the quarter ended March 31, 2017, the Company reported net income of $9.2 million and diluted EPS of $0.68.  For the quarter ended June 30, 2016, the Company reported net income of $6.7 million and diluted EPS of $0.53.  In the second quarter of 2017, the Company recognized a tax benefit related to stock options exercised and restricted stock awards vested of $90 thousand, compared to $533 thousand of reduced income tax expense for the first quarter of 2017.

For the six months ended June 30, 2017, the Company reported net income of $18.0 million, and diluted EPS of $1.33.  By comparison, for the six months ended June 30, 2016, the Company reported net income of $13.1 million, and diluted EPS of $1.07.

“Our operating performance for the first half of the year was strong,” commented Douglas M. Hultquist, President and Chief Executive Officer, “and we continue to strategize and pursue ways to improve our profitability through our ongoing key initiatives.  Our return on average assets has improved to 1.08% from 1.00%, when comparing the first six months of 2017 to the same period of the prior year.  This is the result of strong organic loan growth, robust growth in core deposits, reductions in wholesale borrowings, margin improvements, modest operating expense growth, and solid fee income.  Our acquisition of Community State Bank, based in Ankeny, Iowa (“CSB”) in the 3rd quarter of 2016 also contributed to our improved profitability.”

Annualized Loan and Lease Growth of 19.2% for Second Quarter of 2017

During the second quarter of 2017, the Company’s total assets increased $76.2 million, or 2%, to a total of $3.46 billion, while total loans and leases grew $117.7 million, or 4.8%.  Loan and lease growth was funded by deposit growth that occurred in the first six months of 2017.

“Organic loan and lease growth totaled $117.7 million for the quarter, or an annual growth rate of 19.2%,” commented Mr. Hultquist.  “This was a very strong quarter and puts us back on track to achieve targeted organic growth of 10-12% for the full year, assuming no major economic shifts.  We intend to continue our organic growth primarily through market share increases, as customers continue to appreciate the way we do business and are attracted to our relationship-based community banking model.”

“Swap fee income and gains on the sale of government guaranteed loans totaled $1.5 million for the first six months of the year.  The second quarter of 2017 was slow in this area.  Given the nature of this fee income source, large fluctuations can occur from quarter-to-quarter,” said Todd A. Gipple, Executive Vice President, Chief Operating Officer and Chief Financial Officer.  “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 the Des Moines metro market through CSB.”

Net Interest Income Continues to be
Impacted by Acquisition-Related Accounting

Net interest income totaled $28.0 million for the quarter ended June 30, 2017.  By comparison, net interest income totaled $27.7 million and $21.0 million for the quarters ended March 31, 2017 and June 30, 2016, respectively.  Acquisition-related net accretion  totaled $1.6 million for the quarter ended June 30, 2017.  By comparison, acquisition-related net accretion totaled $2.1 million for the quarter ended March 31, 2017.  Excluding acquisition-related net accretion, net interest income of $26.5 million for the second quarter of 2017 increased 3%, compared to $25.6 million for the quarter ended March 31, 2017.

Net interest income totaled $55.7 million for the six months ended June 30, 2017.  By comparison, net interest income totaled $41.6 million for the six months ended June 30, 2016.

“Net interest margin (excluding acquisition accounting net accretion) was relatively flat showing a modest decline of one basis point at 3.62% for the second quarter of 2017, compared to 3.63% for the first quarter of 2017,” stated Mr. Gipple.  “Loan yield (excluding loan discount accretion) actually increased five basis points when comparing linked quarters at 4.39% for the second quarter of 2017 and 4.34% for the first quarter of 2017.  Although we had a successful quarter of loan growth, much of that growth came late in the quarter so the full benefit will be seen in future periods.”

Nonperforming Assets Decrease 5.3% in Second Quarter

Nonperforming assets (“NPAs”) decreased $1.4 million in the current quarter.  The ratio of NPAs to total assets was 0.75% at June 30, 2017, which was down from 0.81% at March 31, 2017 and up from 0.70% a year ago.

“Our credit quality metrics remain strong in comparison to peers and we remain committed to further improving asset quality in 2017,” stated Mr. Hultquist.    

The Company’s provision for loan and lease losses totaled $2.0 million for the second quarter of 2017, which was down slightly from the prior quarter, and up $825 thousand compared to the second quarter of 2016.  As of June 30, 2017, the Company’s allowance to total loans and leases was 1.31%, which was down from 1.32% at March 31, 2017 and down from 1.46% at June 30, 2016.

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 ($6.3 million at June 30, 2017).  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 1.31% to 1.55%.

Capital Levels Remain Strong

As of June 30, 2017, the Company’s total risk-based capital ratio was 12.01%, the common equity tier 1 ratio was 9.76%, and the tangible common equity to tangible assets ratio increased to 8.29%.  By comparison, these respective ratios were 11.90%, 9.64% and 8.20% as of March 31, 2017.

“As a result of solid earnings performance, capital ratios continue to be strong and we are growing tangible common equity at a steady pace,” stated Mr. Gipple.

Acquisition of Guaranty Bank and Trust Company, Headquartered in Cedar Rapids, Iowa

As previously announced, the Company plans to close the acquisition of Guaranty Bank and Trust Company late in the third quarter or early in the fourth quarter of 2017, pending regulatory and shareholder approvals and certain customary closing conditions.

Continued Focus on Seven Key Initiatives

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

  • Continue strong organic loan and lease growth to maintain loans and leases to total assets ratio in the range of 70-75%
  • Continue to focus on growing core deposits to maintain reliance on wholesale funding at less than 15% of assets
  • Continue to focus on generating gains on sale of USDA and SBA loans, and fee income on 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 markets to further boost ROAA, improve efficiency ratio, and increase EPS

Conference Call Details

The Company will host an earnings call/webcast on July 21, 2017 at 9 a.m. central time.  Dial-in information for the call is toll-free 1-888-317-6016 (international 1-412-317-6016).  Participants should request to join the QCR Holdings, Inc. call. The event will be archived and available for digital replay through August 4, 2017.  The replay access information is toll-free 1-877-344-7529 (international 1-412-317-0088); access code 10110356.  A webcast of the teleconference can be accessed at the Company’s News and Events page at http://www.qcrh.com or http://services.choruscall.com/links/qcrh170721.html.  The archived audio webcast will be available until July 21, 2018.  Participants should visit the Company’s website or call in to the conference line set forth above at least 10 minutes prior to the scheduled start of the call.

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; (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 and the planned acquisition of Guaranty Bank and Trust Company, which may include failure to realize the anticipated benefits of the acquisition and the possibility that the transaction costs may be greater than anticipated; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x)  unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices.  These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.  Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
       
 As of 
 June 30,March 31,December 31,September 30,June 30, 
  2017 2017 2016 2016 2016 
       
 (dollars in thousands) 
       
CONDENSED BALANCE SHEET      
       
Cash and due from banks$  77,161$  56,326$  70,570$  61,213$  49,581 
Federal funds sold and interest-bearing deposits   72,354   173,219   86,206   96,047   68,432 
Securities   593,485   557,646   574,022   564,930   510,959 
Net loans/leases   2,520,209   2,403,791   2,374,730   2,331,774   1,894,676 
Core deposit intangible   6,919   7,150   7,381   7,614   1,372 
Goodwill   13,111   13,111   13,111   13,632   3,223 
Other assets   173,948   169,770   175,924   205,776   155,191 
Total assets$   3,457,187 $   3,381,013 $   3,301,944 $   3,280,986 $   2,683,434  
       
Total deposits$  2,870,234$  2,805,931$  2,669,261$  2,594,913$  1,973,594 
Total borrowings   230,263   231,534   290,952   312,104   381,874 
Other liabilities   51,607   47,708   55,690   93,112   52,849 
Total stockholders' equity   305,083   295,840   286,041   280,857   275,117 
Total liabilities and stockholders' equity$   3,457,187 $   3,381,013 $   3,301,944 $   3,280,986 $   2,683,434  
       
ANALYSIS OF LOAN PORTFOLIO      
Loan/lease mix:      
Commercial and industrial loans (1)$  942,539$  851,578$  827,637$  804,308$  706,261 
Commercial real estate loans   1,131,906   1,106,842   1,093,459   1,070,305   784,379 
Direct financing leases (1)   153,337   159,368   165,419   166,924   169,928 
Residential real estate loans   233,871   231,326   229,233   229,081   180,482 
Installment and other consumer loans   84,047   78,771   81,666   81,918   73,658 
Deferred loan/lease origination costs, net of fees   7,866   7,965   8,073   8,065   8,065 
Total loans/leases$  2,553,566$  2,435,850$  2,405,487$  2,360,601$  1,922,773 
Less allowance for estimated losses on loans/leases   33,357   32,059   30,757   28,827   28,097 
Net loans/leases$   2,520,209 $   2,403,791 $   2,374,730 $   2,331,774 $   1,894,676  
       
ANALYSIS OF SECURITIES PORTFOLIO      
Securities mix:      
U.S. government sponsored agency securities$  41,944$  47,556$  46,084$  67,885$  88,321 
Municipal securities 381,254 356,776 374,463 360,330 302,689 
Residential mortgage-backed and related securities 164,415 147,504 147,702 133,173 116,765 
Other securities 5,872 5,810 5,773 3,542 3,184 
Total securities$   593,485 $   557,646 $   574,022 $   564,930 $   510,959  
       
ANALYSIS OF DEPOSITS      
Deposit mix:      
Noninterest-bearing demand deposits$  760,625$  777,150$  797,415$  764,615$  615,764 
Interest-bearing demand deposits   1,526,103   1,486,047   1,369,226   1,298,781   918,036 
Time deposits 478,580 458,170 439,169 420,470 337,584 
Brokered deposits 104,926 84,564 63,451 111,047 102,210 
Total deposits$   2,870,234 $   2,805,931 $   2,669,261 $   2,594,913 $   1,973,594  
       
ANALYSIS OF BORROWINGS      
Borrowings mix:      
Term FHLB advances$  57,000$  59,000$  63,000$  83,343$  78,000 
Overnight FHLB advances (2) 49,500 47,550 74,500 55,300 118,900 
Wholesale structured repurchase agreements 45,000 45,000 45,000 45,000 100,000 
Customer repurchase agreements 4,897 7,170 8,132 8,265 21,441 
Federal funds purchased 13,320 12,300 31,840 51,750 30,120 
Junior subordinated debentures 33,546 33,514 33,480 33,446 33,413 
Other borrowings 27,000 27,000 35,000   35,000 - 
Total borrowings$   230,263 $   231,534 $   290,952 $   312,104 $   381,874  
       
(1) m2 Lease Funds, LLC originates Equipment Financing Agreements, which are classified as commercial and industrial loans.  
(2) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 1.31%.   
       

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
 
   For the Six Months Ended  
   June 30, June 30,  
    2017  2016  
        
  (dollars in thousands, except per share data) 
        
INCOME STATEMENT      
Interest income $  63,798 $  47,415  
Interest expense    8,082    5,809  
Net interest income     55,716    41,606  
Provision for loan/lease losses    4,128    3,271  
Net interest income after provision for loan/lease losses $   51,588  $   38,335   
        
Trust department fees $  3,432 $  3,088  
Investment advisory and management fees    1,830    1,351  
Deposit service fees    2,775    1,878  
Gain on sales of residential real estate loans    209    145  
Gain on sales of government guaranteed portions of loans    1,038    2,482  
Swap fee income    441    1,025  
Securities gains, net    38    376  
Earnings on bank-owned life insurance    929    874  
Debit card fees    1,446    651  
Correspondent banking fees    445    547  
Other      1,483    1,168  
Total noninterest income $   14,066  $   13,585   
        
Salaries and employee benefits $  26,238 $  21,718  
Occupancy and equipment expense    5,201    3,711  
Professional and data processing fees    4,424    2,990  
Acquisition costs  -    355  
FDIC insurance, other insurance and regulatory fees    1,267    1,284  
Loan/lease expense    554    317  
Net cost of operation of other real estate    42    380  
Advertising and marketing    1,177    820  
Postage and communications    642    474  
Stationery and supplies    422    323  
Bank service charges    871    831  
Losses on debt extinguishment, net  -    83  
Correspondent banking expense    400    359  
Other     1,440    1,053  
Total noninterest expense $   42,678  $   34,698   
        
Net income before taxes $   22,976  $   17,222   
Income tax expense    5,025    4,172  
Net income  $   17,951  $   13,050   
        
Basic EPS $  1.36 $  1.08  
Diluted EPS $  1.33 $  1.07  
        
Weighted average common shares outstanding    13,151,833    12,064,349  
Weighted average common and common equivalent shares outstanding    13,502,505    12,235,212  
        

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
         
   For the Quarter Ended 
   June 30,March 31,December 31,September 30,June 30, 
    2017 2017 2016  2016 2016 
         
   (dollars in thousands, except per share data) 
         
INCOME STATEMENT       
Interest income $  32,453$  31,345$  32,236 $  26,817$  23,913 
Interest expense    4,406   3,676   2,956    3,186   2,904 
Net interest income     28,047   27,669   29,280    23,631   21,009 
Provision for loan/lease losses    2,023   2,105   2,599    1,608   1,198 
Net interest income after provision for loan/lease losses $   26,024 $   25,564 $   26,681  $   22,023 $   19,811  
         
         
Trust department fees $  1,692$  1,740$  1,558 $  1,519$  1,512 
Investment advisory and management fees    868   962   876    766   693 
Deposit service fees    1,459   1,316   1,411    1,151   947 
Gain on sales of residential real estate loans    113   96   142    144   84 
Gain on sales of government guaranteed portions of loans    87   951   458    219   1,604 
Swap fee income    327   114   350    334   168 
Securities gains, net    38 -   (36)   4,252   18 
Earnings on bank-owned life insurance    459   470   447    450   480 
Debit card fees    743   703   688    475   344 
Correspondent banking fees    200   245   249    254   245 
Other      796   687   886    859   667 
Total noninterest income $   6,782 $   7,284 $   7,029  $   10,423 $   6,762  
         
         
Salaries and employee benefits $  12,931$  13,307$  13,396 $  11,202$  10,917 
Occupancy and equipment expense    2,699   2,502   2,630    2,086   1,885 
Professional and data processing fees    2,341   2,083   2,192    1,931   1,542 
Acquisition costs  - -   40    2,046   355 
FDIC insurance, other insurance and regulatory fees    646   621   683    583   650 
Loan/lease expense    260   294   242    103   154 
Net cost of operation of other real estate    28   14   78    133   278 
Advertising and marketing    568   609   760    548   433 
Bank service charges    447   424   446    415   415 
Losses on debt extinguishment, net  - -   357    4,137 - 
Correspondent banking expense    202   198   186    206   182 
Other     1,283   1,221   1,298    1,090   933 
Total noninterest expense $   21,405 $   21,273 $   22,308  $   24,480 $   17,744  
         
Net income before taxes $   11,401 $   11,575 $   11,402  $   7,966 $   8,829  
Income tax expense    2,635   2,390   2,873    1,858   2,153 
Net income  $   8,766 $   9,185 $   8,529  $   6,108 $   6,676  
         
Basic EPS $  0.67$  0.70$  0.65 $  0.47$  0.54 
Diluted EPS $  0.65$  0.68$  0.64 $  0.46$  0.53 
         
Weighted average common shares outstanding    13,170,283   13,133,382   13,087,592    13,066,777   12,335,077 
Weighted average common and common equivalent shares outstanding   13,516,592   13,488,417   13,323,883    13,269,703   12,516,474 
         

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
 
 For the Quarter Ended For the Six Months Ended 
 June 30,March 31,December 31,September 30,June 30, June 30,June 30, 
  2017  2017  2016  2016  2016   2017  2016  
          
 (dollars in thousands, except per share data)    
 
COMMON SHARE DATA         
Common shares outstanding    13,175,234    13,161,219    13,106,845    13,075,307    13,057,368     
Book value per common share (1)$23.16 $22.48 $21.82 $21.48 $21.07     
Tangible book value per common share (2)$21.64 $20.94 $20.11 $19.74 $20.72     
Closing stock price$47.40 $42.35 $43.30 $31.74 $27.19     
Market capitalization$624,506 $557,378 $567,526 $415,010 $355,030     
Market price / book value 204.70% 188.41% 198.41% 147.77% 129.05%    
Market price / tangible book value 219.08% 202.26% 215.36% 160.79% 131.24%    
Earnings per common share (basic) LTM (3)$  2.49 $  2.36 $  2.20 $  2.13 $  2.21     
Price earnings ratio LTM (3) 19.11 x  17.94 x  19.68 x  14.90 x  12.30 x     
TCE / TA (4) 8.29% 8.20% 8.04% 7.92% 10.10%    
          
          
CONDENSED STATEMENT OF CHANGES IN
STOCKHOLDERS' EQUITY
         
Beginning balance$  295,840 $  286,041 $  280,857 $  275,117 $  235,143     
Net income   8,766    9,185    8,529    6,108    6,676     
Other comprehensive income (loss), net of tax   702    411    (3,681)   (361)   1,181     
Common stock cash dividends declared   (657)   (657)   (523)   (521)   (521)    
Proceeds from issuance of 1,215,000 shares of
  common stock, net of costs
 -  -  -  -    29,829     
Other (5)   432    860    859    514    2,809     
Ending balance$   305,083  $   295,840  $   286,041  $   280,857  $   275,117      
          
          
REGULATORY CAPITAL RATIOS (6):         
Total risk-based capital ratio 12.01% 11.90% 11.56% 11.30% 14.29%    
Tier 1 risk-based capital ratio 10.85% 10.75% 10.46% 10.29% 13.04%    
Tier 1 leverage capital ratio 9.37% 9.37% 9.10% 10.09% 11.18%    
Common equity tier 1 ratio 9.76% 9.64% 9.41% 9.22% 11.72%    
          
          
KEY PERFORMANCE RATIOS AND OTHER METRICS         
Return on average assets (annualized) 1.04% 1.12% 1.04% 0.85% 1.01%  1.08% 1.00% 
Return on average total equity (annualized) 11.65% 12.63% 12.04% 8.78% 10.46%  12.13% 10.73% 
Net interest margin 3.54% 3.65% 3.80% 3.48% 3.40%  3.59% 3.39% 
Net interest margin (TEY) (Non-GAAP)(7) 3.81% 3.90% 4.02% 3.71% 3.62%  3.86% 3.61% 
Efficiency ratio (Non-GAAP) (8) 61.46% 60.86% 61.44% 71.89% 63.89%  61.16% 62.87% 
Gross loans and leases / total assets 73.86% 72.04% 72.85% 71.95% 71.65%  73.86% 71.65% 
Effective tax rate 23.11% 20.65% 25.20% 23.32% 24.39%  23.11% 24.22% 
Tax benefit related to stock options exercised and restricted stock
awards vested (9)
 90 533N/AN/AN/A  623N/A 
Full-time equivalent employees (10) 585 561 572 572 410  585 410 
          
          
AVERAGE BALANCES          
Assets$  3,378,195 $  3,274,713 $  3,277,814 $  2,865,947 $  2,640,678  $  3,326,454 $  2,621,514  
Loans/leases   2,488,828    2,398,387    2,358,960    2,077,376    1,899,932     2,443,608    1,866,941  
Deposits   2,835,711    2,692,009    2,717,923    2,243,397    2,033,116     2,763,861    2,006,586  
Total stockholders' equity   300,868    290,906    283,292    278,369    255,391     295,887    243,319  
          
(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 / TA : tangible common equity / total tangible assets.  See GAAP to non-GAAP reconciliations.      
(5) Mainly 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) ASC 2016-09 became effective on January 1, 2017 and affects the accounting for stock compensation.  This amount reflects the tax benefit recognized as a result of this new standard. 
(10) Full-time equivalent ''FTEs" employees increased in the second quarter of 2017 due to the addition of summer interns (13.6 FTEs).  
  FTEs increased in the third quarter of 2016 due to the acquisition of CSB. 

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
 
ANALYSIS OF NET INTEREST INCOME AND MARGIN          
             
  For the Quarter Ended
  June 30, 2017 March 31, 2017 June 30, 2016
  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 $  18,742$  380.81% $  11,092$  150.55% $  14,174$  110.31%
Interest-bearing deposits at financial institutions   86,236   2201.02%    92,551   1990.87%    50,747   620.49%
Securities (1)    573,747   5,3843.76%    560,455   5,1583.73%    505,697   4,5733.64%
Restricted investment securities   13,226   1324.00%    13,871   1303.80%    14,171   1343.80%
Loans (1)    2,488,828   28,8814.65%    2,398,387   27,7934.70%    1,899,932   20,4974.34%
Total earning assets (1)$  3,180,779$  34,6554.37% $  3,076,356$  33,2954.39% $  2,484,721$  25,2774.09%
             
Interest-bearing deposits$  1,566,106$  1,8350.47% $  1,407,645$  1,1400.33% $  941,856$  6000.26%
Time deposits    527,719   1,1560.88%    511,119   1,0930.87%    425,216   7440.70%
Short-term borrowings   17,936   190.42%    25,188   240.39%    50,122   180.14%
Federal Home Loan Bank advances (4)   76,739   3541.85%    114,356   4031.43%    128,956   4161.30%
Other borrowings    33,530   3474.15%    74,761   6833.71%    100,008   8243.31%
Junior subordinated debentures   72,000   6963.88%    33,497   3334.03%    33,396   3023.64%
Total interest-bearing liabilities$  2,294,030$  4,4070.77% $  2,166,566$  3,6760.69% $  1,679,554$  2,9040.70%
             
Net interest income / spread (1) $  30,2483.60%  $  29,6193.70%  $  22,3733.39%
Net interest margin (2)  3.54%   3.65%   3.40%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.81%   3.90%   3.62%
             
             
  For the Six Months Ended    
  June 30, 2017 June 30, 2016  
  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 $  14,917$  530.72% $  15,703$  230.29%    
Interest-bearing deposits at financial institutions   89,394   4180.94%    45,691   1230.54%    
Securities (1)    567,101   10,5433.75%    528,034   9,2573.53%    
Restricted investment securities   13,549   2623.90%    14,156   2643.75%    
Loans (1)    2,443,608   56,7414.68%    1,866,941   40,4544.36%    
Total earning assets (1)$  3,128,569$  68,0174.38% $  2,470,525$  50,1214.08%    
             
Interest-bearing deposits$  1,486,876$  2,9740.40% $  933,551$  1,2140.26%    
Time deposits    519,419   2,2490.87%    412,410   1,4200.69%    
Short-term borrowings   21,562   430.40%    68,331   610.18%    
Federal Home Loan Bank advances   95,548   7581.60%    128,696   8581.34%    
Other borrowings    33,514   6804.09%    100,873   1,6503.29%    
Junior subordinated debentures   73,381   1,3793.79%    34,023   6063.58%    
Total interest-bearing liabilities$  2,230,300$  8,0830.73% $  1,677,884$  5,8090.70%    
             
Net interest income / spread (1) $  59,9343.65%  $  44,3123.38%    
Net interest margin (2)  3.59%   3.39%    
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.86%   3.61%    
             
             
(1) Includes nontaxable securities and loans.  Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 35% tax rate   
  for each period presented.            
(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.         

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
 
 As of  
 June 30,March 31,December 31,September 30,June 30,  
  2017  2017  2016  2016  2016   
        
 (dollars in thousands, except per share data)  
        
ROLLFORWARD OF ALLOWANCE FOR
LOAN/LEASE LOSSES
       
Beginning balance$  32,059 $  30,757 $  28,827 $  28,097 $  27,395   
Provision charged to expense   2,023    2,105    2,599    1,608    1,198   
Loans/leases charged off   (851)   (893)   (755)   (987)   (634)  
Recoveries on loans/leases previously charged off   126    90    86    109    138   
Ending balance$   33,357  $   32,059  $   30,757  $   28,827  $   28,097    
        
        
NONPERFORMING ASSETS       
Nonaccrual loans/leases$  13,217 $  14,205 $  13,919 $  14,371 $  10,737   
Accruing loans/leases past due 90 days or more   424    955    967    392    86   
Troubled debt restructures - accruing   6,915    6,229    6,347    1,825    1,753   
Total nonperforming loans/leases   20,556    21,389    21,233    16,588    12,576   
Other real estate owned   5,174    5,625    5,523    5,808    6,179   
Other repossessed assets   123    285    202    353    154   
Total nonperforming assets$   25,853  $   27,299  $   26,958  $   22,749  $   18,909    
        
        
ASSET QUALITY RATIOS       
Nonperforming assets / total assets 0.75% 0.81% 0.82% 0.69% 0.70%  
Allowance / total loans/leases (1) 1.31% 1.32% 1.28% 1.22% 1.46%  
Allowance / nonperforming loans/leases (1) 162.27% 149.89% 144.85% 173.78% 223.42%  
Net charge-offs as a % of average loans/leases 0.03% 0.03% 0.03% 0.04% 0.03%  
        
        
(1) Upon acquisition and per GAAP, acquired loans are recorded at market value, which eliminated the allowance and impacts these ratios.  
  

 

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
 
   For the Quarter Ended For the Six Months Ended 
   June 30,  March 31, June 30, June 30, June 30, 
 SELECT FINANCIAL DATA - SUBSIDIARIES  2017   2017   2016   2017   2016  
   (dollars in thousands) 
             
 TOTAL ASSETS           
             
 Quad City Bank and Trust (1) $  1,400,308  $  1,442,952  $  1,390,025      
 m2 Lease Funds, LLC    215,689     210,062     207,334      
 Cedar Rapids Bank and Trust    993,769     929,111     904,367      
 Community State Bank    642,761     608,431   N/A      
 Rockford Bank and Trust    426,160     398,455     402,157      
             
 TOTAL DEPOSITS           
             
 Quad City Bank and Trust (1) $  1,205,516  $  1,261,075  $  1,049,049      
 Cedar Rapids Bank and Trust    789,750     733,227