About QCBT

Press Release

QCR Holdings, Inc. Announces Third Quarter Earnings

Company Release - 10/29/2018 4:05 PM ET

Third Quarter 2018 Highlights

  • Completion of merger with Springfield Bancshares, Inc. on July 1, 2018
  • Acquisition of the Bates Companies completed on October 1, 2018
  • Net income of $8.8 million, or $0.55 per diluted share
  • Core net income (non-GAAP) of $10.4 million, or $0.65 per diluted share
  • Annualized organic loan and lease growth of 7.9% for the quarter and 10.5% year-to-date

MOLINE, Ill., Oct. 29, 2018 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced net income of $8.8 million and diluted earnings per share (“EPS”) of $0.55 for the third quarter of 2018, compared to net income of $10.4 million and diluted EPS of $0.73 for the second quarter of 2018. The third quarter results included $1.6 million of acquisition and post-acquisition compensation, transition and integration costs (after-tax), compared to $0.5 million of similar costs in the second quarter of 2018. Excluding these non-core items, the Company reported core net income (non-GAAP) of $10.4 million and core diluted EPS of $0.65 for the third quarter of 2018, compared to core net income (non-GAAP) of $10.9 million and core diluted EPS of $0.77 for the second quarter of 2018. For the third quarter of 2017, the Company reported net income of $7.9 million and diluted EPS of $0.58, and core net income (non-GAAP) of $8.5 million and core diluted EPS of $0.63.

For the nine months ended September 30, 2018, the Company reported net income of $29.8 million, and diluted EPS of $2.02. Excluding non-core items, the Company reported core net income (non-GAAP) of $31.9 million and core diluted EPS of $2.16. By comparison, for the nine months ended September 30, 2017, the Company reported net income of $25.8 million and diluted EPS of $1.91, and core net income (non-GAAP) of $26.4 million and core diluted EPS of $1.96.

On July 1, 2018 the Company completed its previously announced merger with Springfield Bancshares, Inc. (“Springfield Bancshares”), the holding company of Springfield First Community Bank (“SFC Bank”).  Established as a de novo bank in 2008, SFC Bank is headquartered in Springfield, Missouri and, as a result of the transaction, became QCR Holdings’ fifth independent bank charter. 

“While we are generally pleased with our pre-provision financial results for the third quarter, we experienced a higher than anticipated provision for loan and lease losses, which significantly impacted our profitability,” said Doug Hultquist, President and CEO of the Company. “Specifically, two unrelated credits at Rockford Bank & Trust were placed on nonaccrual status which largely drove the higher provision. Importantly, we are confident that this is an isolated situation and not a systemic issue in that market.

“We are also pleased to have recently closed two transactions. The merger with Springfield Bancshares is an excellent strategic and cultural fit for our company and provides us entry into the very attractive Springfield market with one of the strongest community bank management teams in the region.  The Bates Companies is a well-respected financial advisory and wealth management firm in the greater Rockford region and bolsters Rockford Bank & Trust’s product offering and provides incremental non-interest income to the Company.”

Annualized Organic Loan and Lease Growth of 7.9% for the Quarter
and 10.5% Year-to-Date

During the third quarter of 2018, the Company’s total assets increased $685.9 million, to a total of $4.8 billion, while total loans and leases grew $538.6 million. Excluding the SFC Bank merger, the Company had organic loan and lease growth of $61.3 million, or a 2.0% increase, compared to the second quarter of 2018. Loan and lease growth was primarily funded by an increase in short-term wholesale funding. At quarter-end, the percentage of gross loans and leases to total assets was 76%, which is a modest increase compared to the end of the second quarter. In addition, average wholesale funds to total assets was flat at 12% during the third quarter, when compared to the second quarter.

“Our loan growth for the third quarter was driven in part by the SFC Bank transaction, as well as broad-based demand for commercial and industrial and commercial real estate loans,” added Mr. Hultquist. “We are encouraged by our current pipeline and feel good about our ability to continue to bring high-quality assets onto our balance sheet, driving improved profitability and shareholder returns. And, despite a continued elevation in the level of payoffs, we remain on track to achieve our stated goal of 10% to 12% organic loan growth.”

Net Interest Income of $38.3 million

Net interest income for the third quarter of 2018 totaled $38.3 million, compared to $32.1 million for the second quarter of 2018 and $28.6 million for the third quarter of 2017. The increase in net interest income was due to an increase in average loan balances, primarily attributable to the SFC Bank transaction, but also due to organic growth of $528,000, or a 2% increase, on a linked quarter basis. In addition, net interest income was favorably impacted by higher loan yields, partially offset by an increase in funding costs, driven by the Federal Reserve's recent rate hikes. Acquisition-related net accretion totaled $1.7 million (pre-tax) for the third quarter of 2018, compared to $0.5 million in the second quarter of 2018 and $0.5 million for the third quarter of 2017. Excluding acquisition-related net accretion, net interest income was $36.6 million for the third quarter of 2018, an increase of $5.1 million from the second quarter of 2018, and included a $4.5 million contribution from SFC Bank.

Net interest income totaled $102.8 million for the nine months ended September 30, 2018, compared to $84.3 million for the nine months ended September 30, 2017.

Reported net interest margin was 3.46% in the third quarter of 2018.  On a tax-equivalent yield basis, net interest margin for the third quarter of 2018 was 3.60% and, excluding acquisition-related net accretion, was 3.44%, down two basis points from the second quarter of 2018. This slight decline in core net interest margin was due to increases in the Company’s cost of funds (due to both mix and rate), which was partially offset by higher yields on the Company’s loans.

“Our core loan yields, excluding acquisition-related accretion, increased favorably, up 10 basis points on a linked quarter basis,” stated Todd A. Gipple, Executive Vice President, Chief Operating Officer and Chief Financial Officer. “Competition for deposits remains strong, and as a result our overall cost of funds, excluding acquisition amortization, increased by 14 basis points during the quarter.”

 Noninterest Income of $8.8 million

Noninterest income for the third quarter of 2018 totaled $8.8 million, compared to $8.9 million for the second quarter of 2018. The slight decrease was primarily due to $0.5 million in lower swap fee income, partially offset by an increase in gains on the sale of residential real estate loans and trust department fees. Wealth management revenue was $3.3 million for the quarter, a 4.5% increase from the second quarter of 2018. Noninterest income increased 31.4% when comparing the current quarter to the third quarter of 2017. The increase was primarily attributable to higher wealth management revenue and swap fee income.

Noninterest income totaled $26.3 million for the nine months ended September 30, 2018, compared to $20.8 million for the nine months ended September 30, 2017.

“Noninterest income was essentially flat from the second quarter of 2018, driven primarily by lower swap fee income. However, swap fee income and gains on the sale of government guaranteed loans totaled $4.1 million year-to-date, above our annual expectation of $4.0 million, and we expect these components of our noninterest income to continue to be strong for the fourth quarter,” added Mr. Gipple. “We are also pleased with our wealth management revenue growth of over 20% year-to-date, as well as, the addition of the Bates Companies into our Rockford Bank & Trust wealth management group as of October 1, 2018. We expect accelerated wealth management revenue growth in the fourth quarter due to the Bates transaction.”

Noninterest Expenses of $30.5 million

Noninterest expenses for the third quarter of 2018 totaled $30.5 million, compared to $26.4 million and $23.4 million for the second quarter of 2018 and third quarter of 2017, respectively. The linked quarter increase was largely attributable to a $1.6 million increase in salaries and employee benefits due to increased personnel resulting from the SFC Bank transaction, as well as growth in organic hires in selective markets. In addition, acquisition and post-acquisition compensation, transition and integration costs increased by $1.2 million in the third quarter compared to the second quarter. Excluding acquisition-related expenses and expenses attributable to SFC Bank, the Company’s legacy noninterest expenses increased by $0.7 million, or 2.7%, on a linked quarter basis.

Asset Quality

Nonperforming assets (“NPAs”) totaled $41.6 million, an increase of $14.8 million from the second quarter of 2018, primarily due to two credits at Rockford Bank & Trust and one credit at Quad City Bank & Trust. The ratio of NPAs to total assets was 0.87% at September 30, 2018, which was up from 0.65% at June 30, 2018 and down from 0.95% at September 30, 2017. SFC Bank had no NPAs at the end of the third quarter.

The Company’s provision for loan and lease losses totaled $6.2 million for the third quarter of 2018, which was up $3.9 million from the prior quarter and up $4.1 million compared to the third quarter of 2017. The linked quarter increase in the provision for loan and lease losses was due to the two unrelated credits at Rockford Bank & Trust. As of September 30, 2018, the Company’s allowance to total loans and leases was 1.18%, which was slightly down from 1.21% at June 30, 2018 and down from 1.31% at September 30, 2017.

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 ($14.4 million at September 30, 2018). 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 1.18% to 1.57%.

Capital Levels

As of September 30, 2018, the Company’s total risk-based capital ratio was 10.84%, the common equity Tier 1 ratio was 8.90%, and the tangible common equity to tangible assets ratio was 7.82%. By comparison, these respective ratios were 11.23%, 9.16% and 8.18% as of June 30, 2018.

“Our capital tightened during the third quarter as expected due, in large part, to the SFC Bank transaction, including the related purchase accounting adjustments,” stated Mr. Gipple.  “We plan to organically build our capital back to historically strong levels, including targeting a total risk-based capital ratio of 12% and tangible common equity to total assets of 8%.”

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 30, 2018, at 10:00 a.m. central time. Dial-in information for the call is toll-free 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be  available for digital replay through November 13, 2018. The replay access information is toll-free 877-344-7529 (international 412-317-0088); access code 10124682. A webcast of the teleconference can be accessed at the Company’s News and Events page at http://www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

About Us

QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, Springfield and Rockford communities through its wholly owned subsidiary banks which provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, and Rockford Bank & Trust Company, based in Rockford, Illinois, commenced operations in 2005.  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. The Company enhanced its presence in Cedar Rapids, Iowa with the acquisition of Guaranty Bank & Trust Company in October 2017, which merged with Cedar Rapids Bank & Trust in December 2017. In July 2018, QCR Holdings completed a merger with Springfield Bancshares, Inc., the holding company of SFC Bank of Springfield, Missouri. With the addition of SFC Bank, QCR Holdings has 27 locations in Illinois, Iowa, Wisconsin and Missouri. As of September 30, 2018, QCR Holdings had approximately $4.8 billion in assets, $3.7 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; (ii) the economic impact of any future terrorist threats and attacks, and the response of the United States to any such threats and attacks; (iii) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business; (iv) changes in interest rates and prepayment rates of the Company’s assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of the acquisition and the possibility that the transaction costs may be greater than anticipated; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x)  unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

Contacts:

Todd A. Gipple
Executive Vice President
Chief Operating Officer
Chief Financial Officer
(309) 743-7745
[email protected]

Christopher J. Lindell
Executive Vice President
Corporate Communications
(319) 743-7006
[email protected]

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
      
 As of
 September 30,June 30,March 31,December 31,September 30,
 20182018201820172017
      
 (dollars in thousands)
      
CONDENSED BALANCE SHEET     
      
Cash and due from banks$  73,407$  69,069$  61,846$  75,722$  56,275
Federal funds sold and interest-bearing deposits   129,660   51,667   59,557   85,962   61,789
Securities   650,745   657,997   640,906   652,382   583,936
Net loans/leases   3,610,309   3,077,247   3,018,370   2,930,130   2,641,772
Core deposit intangible   16,137   8,470   8,774   9,079   6,689
Goodwill   73,618   28,091   28,334   28,334   13,111
Other assets   238,856   214,342   208,527   201,056   186,891
Total assets$  4,792,732 $  4,106,883 $  4,026,314 $  3,982,665 $  3,550,463
      
Total deposits$  3,788,277$  3,298,276$  3,280,001$  3,266,655$  2,894,268
Total borrowings 483,635 380,392 334,802 309,479 296,145
Other liabilities   63,433   58,627   51,083   53,244   47,011
Total stockholders' equity   457,387   369,588   360,428   353,287   313,039
Total liabilities and stockholders' equity$  4,792,732 $  4,106,883 $  4,026,314 $  3,982,665 $  3,550,463
      
ANALYSIS OF LOAN PORTFOLIO     
Loan/lease mix:     
Commercial and industrial loans$  1,380,543$  1,273,000$  1,201,086$  1,134,516$  1,034,530
Commercial real estate loans   1,727,326   1,349,319   1,357,703   1,303,492   1,157,855
Direct financing leases   126,752   133,197   137,615   141,448   147,063
Residential real estate loans   309,288   257,434   254,484   258,646   239,958
Installment and other consumer loans   100,191   92,952   95,912   118,611   89,606
Deferred loan/lease origination costs, net of fees    9,286   8,890   8,103   7,773   7,742
Total loans/leases$  3,653,386$  3,114,792$  3,054,903$  2,964,486$  2,676,754
Less allowance for estimated losses on loans/leases   43,077   37,545   36,533   34,356   34,982
Net loans/leases$  3,610,309 $  3,077,247 $  3,018,370 $  2,930,130 $  2,641,772
      
ANALYSIS OF SECURITIES PORTFOLIO     
Securities mix:     
U.S. government sponsored agency securities$  36,492$  35,667$  36,868$  38,097$  39,340
Municipal securities 453,275 458,510 438,736 445,049 379,694
Residential mortgage-backed and related securities 155,733 158,534 157,333 163,301 158,969
Other securities 5,245 5,286 7,969 5,935 5,933
Total securities$  650,745 $  657,997 $  640,906 $  652,382 $  583,936
      
ANALYSIS OF DEPOSITS     
Deposit mix:     
Noninterest-bearing demand deposits$  802,090$  746,822$  784,815$  789,548$  715,537
Interest-bearing demand deposits   2,094,814   1,865,382   1,789,019   1,855,893   1,614,894
Time deposits 615,323 519,999 496,644 516,058 430,270
Brokered deposits 276,050 166,073 209,523 105,156 133,567
Total deposits$  3,788,277 $  3,298,276 $  3,280,001 $  3,266,655 $  2,894,268
      
ANALYSIS OF BORROWINGS     
Borrowings mix:     
Term FHLB advances$  63,399$  46,600$  56,600$  56,600$  58,600
Overnight FHLB advances (1) 295,730 207,500 159,745 135,400 110,455
Wholesale structured repurchase agreements 35,000 35,000 35,000 35,000 45,000
Customer repurchase agreements 3,049 2,186 3,820 7,003 3,671
Federal funds purchased 8,670 15,400 13,040 6,990 12,340
Junior subordinated debentures 37,626 37,581 37,534 37,486 33,579
Other borrowings 40,161 36,125 29,063 31,000 32,500
Total borrowings$  483,635 $  380,392 $  334,802 $  309,479 $  296,145
      
(1) The weighted-average rate of these overnight borrowings was 2.39% as of September 30, 2018; 2.09% as of June 30, 2018; 1.90% as of March 31, 2018;
  1.63% as of December 31, 2017; and 1.32% as of September 30, 2017.    
     
     



QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
        
   For the Quarter Ended
   September 30,June 30,March 31,December 31,September 30,
   2018
2018
20182017
2017 
        
   (dollars in thousands, except per share data)
        
INCOME STATEMENT      
Interest income $  49,831 $  40,799 $  39,546$  37,878 $  33,841 
Interest expense    11,517    8,714    7,143   6,085    5,285 
Net interest income    38,314    32,085    32,403   31,793    28,556 
Provision for loan/lease losses    6,206    2,301    2,540   2,255    2,087 
Net interest income after provision for loan/lease losses $  32,108  $  29,784  $  29,863 $  29,538  $  26,469  
        
        
Trust department fees $  2,196 $  2,058 $  2,237$  2,034 $  1,722 
Investment advisory and management fees    1,059    1,058    952   1,071    969 
Deposit service fees    1,656    1,610    1,531   1,622    1,522 
Gain on sales of residential real estate loans    337    102    101   101    98 
Gain on sales of government guaranteed portions of loans    46  -    358   34    92 
Swap fee income    1,110    1,649    959   2,460    194 
Securities gains (losses), net  -  -  -   (63)   (63)
Earnings on bank-owned life insurance    474    399    418   445    428 
Debit card fees    846    844    766   741    755 
Correspondent banking fees    195    213    265   231    239 
Other     890    979    954   1,038    746 
Total noninterest income $  8,809  $  8,912  $  8,541 $  9,714  $  6,702  
        
        
Salaries and employee benefits $  17,433 $  15,804 $  15,978$  16,060 $  13,424 
Occupancy and equipment expense    3,318    3,133    3,066   3,221    2,516 
Professional and data processing fees    2,537    2,771    2,708   3,382    2,951 
Acquisition costs    1,292    414    93   661    408 
Post-acquisition compensation, transition and integration costs   494    165  -   3,787    523 
FDIC insurance, other insurance and regulatory fees    933    840    756   795    690 
Loan/lease expense    369    260    291   352    257 
Net cost of (income from) operation of other real estate    (50)   (70)   132   120    (160)
Advertising and marketing    984    753    693   778    670 
Bank service charges    462    466    441   439    460 
Correspondent banking expense    205    204    205   203    204 
CDI amortization    542    305    305   308    231 
Other     1,981    1,325    1,195   1,245    1,221 
Total noninterest expense $  30,500  $  26,370  $  25,863 $  31,351  $  23,395  
        
Net income before taxes $  10,417  $  12,326  $  12,541 $  7,901  $  9,776  
Income tax expense (benefit)    1,608    1,881    1,991   (2,001)   1,922 
Net income  $  8,809  $  10,445  $  10,550 $  9,902  $  7,854  
        
Basic EPS $  0.56 $  0.75 $  0.76$  0.72 $  0.60 
Diluted EPS $  0.55 $  0.73 $  0.74$  0.70 $  0.58 
        
Weighted average common shares outstanding    15,625,123    13,919,565    13,888,661   13,845,497    13,151,350 
Weighted average common and common equivalent shares outstanding   15,922,324    14,232,423    14,205,584   14,193,191    13,507,955 
               
               


QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
      
   For the Nine Months Ended
   September 30, September 30,
   2018 2017
      
   (dollars in thousands, except per share data)
      
INCOME STATEMENT    
Interest income $  130,175 $  97,639 
Interest expense    27,374    13,367 
Net interest income    102,801    84,272 
Provision for loan/lease losses    11,046    6,215 
Net interest income after provision for loan/lease losses $  91,755  $  78,057  
      
      
Trust department fees $  6,491 $  5,154 
Investment advisory and management fees    3,069    2,799 
Deposit service fees    4,797    4,297 
Gain on sales of residential real estate loans    539    307 
Gain on sales of government guaranteed portions of loans    405    1,130 
Swap fee income    3,718    635 
Securities gains (losses), net  -    (25)
Earnings on bank-owned life insurance    1,292    1,357 
Debit card fees    2,456    2,201 
Correspondent banking fees    673    684 
Other     2,822    2,229 
Total noninterest income $  26,262  $  20,768  
      
      
Salaries and employee benefits $  49,215 $  39,662 
Occupancy and equipment expense    9,517    7,717 
Professional and data processing fees    8,016    7,375 
Acquisition costs    1,799    408 
Post-acquisition compensation, transition and integration costs    659    523 
FDIC insurance, other insurance and regulatory fees    2,529    1,957 
Loan/lease expense    920    811 
Net cost of (income from) operation of other real estate    11    (118)
Advertising and marketing    2,430    1,847 
Bank service charges    1,368    1,331 
Correspondent banking expense    614    604 
CDI amortization    1,151    693 
Other     4,504    3,263 
Total noninterest expense $  82,733  $  66,073  
      
Net income before taxes $  35,284  $  32,752  
Income tax expense    5,480    6,947 
Net income  $  29,804  $  25,805  
      
Basic EPS $  2.06 $  1.96 
Diluted EPS $  2.02 $  1.91 
      
Weighted average common shares outstanding    14,477,783    13,151,672 
Weighted average common and common equivalent shares outstanding   14,786,777    13,509,566 
       
       



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, 
 20182018201820172017 20182017 
          
 (dollars in thousands, except per share data) 
          
COMMON SHARE DATA         
Common shares outstanding   15,673,760    13,973,940    13,936,957    13,918,168    13,201,959     
Book value per common share (1)$29.18 $26.45 $25.86 $25.38 $23.71     
Tangible book value per common share (2)$23.46 $23.83 $23.20 $22.70 $22.21     
Closing stock price$40.85 $47.45 $44.85 $42.85 $45.50     
Market capitalization$640,273 $663,063 $625,073 $596,393 $600,689     
Market price / book value 139.98% 179.41% 173.43% 168.81% 191.89%    
Market price / tangible book value 174.16% 199.10% 193.33% 188.81% 204.85%    
Earnings per common share (basic) LTM (3)$2.79 $2.83 $2.74 $2.69 $2.62     
Price earnings ratio LTM (3)14.64 x16.77 x 16.37 x 15.93 x 17.37 x    
TCE / TA (4) 7.82% 8.18% 8.10% 8.01% 8.31%    
          
          
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY     
Beginning balance$  369,588 $  360,428 $  353,287 $  313,039 $  305,083     
Net income   8,809    10,445    10,550    9,902    7,854     
Other comprehensive income (loss), net of tax   (612)   (1,335)   (3,201)   (295)   275     
Common stock cash dividends declared   (938)   (836)   (834)   (693)   (658)    
Proceeds from issuance of 678,670 shares of
  common stock, net of costs, as a result of the
  acquisition of Guaranty Bank & Trust
 -  -  -    30,741  -     
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  -  -  -  -     
Other (5)   477    886    626    593    485     
Ending balance$  457,387  $  369,588  $  360,428  $  353,287  $  313,039      
          
          
REGULATORY CAPITAL RATIOS (6):         
Total risk-based capital ratio 10.84% 11.23% 11.25% 11.15% 11.49%    
Tier 1 risk-based capital ratio 9.81% 10.19% 10.21% 10.14% 10.35%    
Tier 1 leverage capital ratio 8.87% 9.22% 9.08% 8.98% 9.23%    
Common equity tier 1 ratio 8.90% 9.16% 9.14% 9.10% 9.33%    
          
          
KEY PERFORMANCE RATIOS AND OTHER METRICS         
Return on average assets (annualized) 0.75% 1.03% 1.06% 1.01% 0.90%  0.94% 1.02% 
Return on average total equity (annualized) 8.08% 11.45% 11.84% 11.67% 10.15%  10.30% 11.45% 
Net interest margin 3.46% 3.37% 3.50% 3.41% 3.43%  3.45% 3.54% 
Net interest margin (TEY) (Non-GAAP)(7) 3.60% 3.52% 3.64% 3.69% 3.71%  3.59% 3.81% 
Efficiency ratio (Non-GAAP) (8) (12) 64.72% 64.32% 63.17% 75.53% 66.35%  64.10% 62.90% 
Gross loans and leases / total assets 76.23% 75.84% 75.87% 74.43% 75.39%  76.23% 75.39% 
Gross loans and leases / total deposits 96.44% 94.44% 93.14% 90.75% 92.48%  96.44% 92.48% 
Effective tax rate (11) 15.44% 15.26% 15.88% -25.33% 19.66%  15.53% 21.21% 
Tax benefit related to stock options exercised and restricted stock awards vested (9) 9  200  133  406  191   342  814  
Full-time equivalent employees (10) 728  666  639  641  580   728  580  
          
          
AVERAGE BALANCES          
Assets$  4,677,875 $  4,053,684 $  3,994,691 $  3,923,337 $  3,503,148  $  4,242,083 $  3,385,352  
Loans/leases   3,612,648    3,077,517    3,019,376    2,930,711    2,629,626     3,236,514    2,505,614  
Deposits   3,840,077    3,343,003    3,239,562    3,256,481    2,882,106     3,474,213    2,803,275  
Total stockholders' equity   436,065    365,031    356,525    339,468    309,596     385,874    300,457  
          
(1) Includes accumulated other comprehensive income (loss).        
(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets.      
(3) LTM : Last twelve months.         
(4) 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) 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 employees increased in the 3rd quarter of 2018 due to the acquisition of SFC Bank.     
  Full-time equivalent employees increased in the 2nd quarter of 2018 due primarily to the addition of summer interns and several new positions created to build scale.
  Full-time equivalent employees increased in the 4th quarter of 2017 due to the acquisition of Guaranty Bank & Trust, as well as the filling of open positions throughout the Company.
(11) The effective tax rate for the fourth quarter of 2017 and the full year were impacted by a $2.9 million tax benefit recorded as a result of the Tax Cuts and Jobs Act. 
(12) The efficiency ratio was unusually high in the fourth quarter of 2017 due to one-time acquisition costs and post-acquisition transition and integration costs totaling $4.4 million.
 
 


QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
             
             
ANALYSIS OF NET INTEREST INCOME AND MARGIN          
             
  For the Quarter Ended
  September 30, 2018 June 30, 2018 September 30, 2017
   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 $  23,199$  1051.80% $  18,561$  611.32% $  19,966$  521.03%
Interest-bearing deposits at financial institutions   61,815   3232.07%    54,879   2281.67%    42,178   1411.33%
Securities (1)    667,142   5,9733.55%    648,276   5,7523.56%    593,451   5,8083.88%
Restricted investment securities   22,683   3305.77%    21,100   2124.03%    17,793   1733.86%
Loans (1)    3,612,648   44,6484.90%    3,077,517   36,0084.69%    2,629,626   29,9784.52%
Total earning assets (1)$  4,387,487$  51,3794.65% $  3,820,333$  42,2614.44% $  3,303,014$  36,1524.34%
             
Interest-bearing deposits$  2,214,480$  5,4320.97% $  1,919,406$  4,0890.85% $  1,613,162$  2,2300.55%
Time deposits    825,020   3,2901.58%    665,643   2,4391.47%    530,120   1,3260.99%
Short-term borrowings   21,407   781.45%    19,024   631.33%    16,138   330.81%
Federal Home Loan Bank advances   209,111   1,2732.42%    174,826   8822.02%    146,556   6081.65%
Other borrowings    74,503   9254.93%    67,044   7334.39%    72,617   7263.97%
Junior subordinated debentures   37,600   5195.48%    37,558   5085.43%    33,563   3624.28%
Total interest-bearing liabilities$  3,382,121$  11,5171.35% $  2,883,501$  8,7141.21% $  2,412,156$  5,2850.87%
             
Net interest income / spread (1) $  39,8623.30%  $  33,5473.23%  $  30,8673.47%
Net interest margin (2)  3.46%   3.37%   3.43%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.60%   3.52%   3.71%
             
             
  For the Nine Months Ended    
  September 30, 2018 September 30, 2017  
   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 $  20,488$  2231.46% $  16,600$  1050.85%