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Press Release

QCR Holdings, Inc. Announces Record Net Income of $13.5 Million for the Second Quarter of 2019

Company Release - 7/23/2019 4:05 PM ET

Second Quarter 2019 Highlights

  • Net income of $13.5 million, or $0.85 per diluted share
  • Adjusted net income (non-GAAP) of $14.1 million, or $0.88 per diluted share
  • Annualized loan and lease growth of 11.7% for the quarter and 9.5% year-to-date
  • Annualized deposit growth of 12.2% for the quarter and 17.4% year-to-date
  • Record noninterest income of $17.1 million for the quarter and $29.1 million year-to-date
  • NIM and NIM (TEY)(non-GAAP) stabilized at 3.25% and 3.40%, respectively
  • Nonperforming assets down $3.2 million, or 12.2% from the prior quarter

MOLINE, Ill., July 23, 2019 (GLOBE NEWSWIRE) --  QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced net income of $13.5 million and diluted earnings per share (“EPS”) of $0.85 for the second quarter of 2019, compared to net income of $12.9 million and diluted EPS of $0.81 for the first quarter of 2019. The second quarter results included $0.6 million of post-acquisition compensation, transition and integration costs (after-tax), compared to $0.1 million of similar costs in the first quarter of 2019. Excluding these expenses, the Company reported adjusted net income (non-GAAP) of $14.1 million and adjusted diluted EPS of $0.88 for the second quarter of 2019, compared to adjusted net income (non-GAAP) of $13.0 million and adjusted diluted EPS of $0.82 for the first quarter of 2019. For the second quarter of 2018, net income and diluted EPS were $10.4 million and $0.73, respectively, and adjusted net income (non-GAAP) and adjusted diluted EPS were $10.9 million and $0.77, respectively.

 For the Quarter Ended
 June 30,Mar. 31,June 30,
$ in millions (except per share data) 2019 2019 2018
Net Income$13.5$12.9$10.4
Diluted EPS$0.85$0.81$0.73
Adjusted Net Income (non-GAAP)(1)$14.1$13.0$10.9
Adjusted Diluted EPS (non-GAAP)(1) $0.88$0.82$0.77
(1)  See GAAP to non-GAAP reconciliations.   

“We are very pleased with our results for the second quarter,” commented Larry J. Helling, Chief Executive Officer. “We posted a record quarter of net income, driven by strong loan and deposit growth, record fee income, excellent credit quality and careful management of noninterest expenses. We successfully deployed our increase in core deposits during the quarter with solid loan and lease production, while maintaining disciplined underwriting. The higher average loan balances, combined with a stable net interest margin, enabled us to generate an increase in net interest income from the prior quarter.” 

Annualized Loan and Lease Growth of 11.7%

During the second quarter of 2019, the Company’s total assets increased $128.2 million to a total of $5.2 billion, while total loans and leases grew $111.1 million, or 2.9%, compared to the first quarter of 2019. Loan and lease growth was funded by an increase in core deposits. Core deposits (excluding brokered deposits) increased $159.7 million, or 4.1% on a linked quarter basis. At quarter-end, the percentage of wholesale funds to total assets was 10.0%, an improvement from 11.9% in the first quarter. Additionally, at quarter-end the percentage of gross loans and leases to total assets remained consistent on a linked quarter basis at 75%.

“Our solid loan growth for the quarter was driven by strength in commercial and industrial and commercial real estate construction loans,” added Mr. Helling. “Production was driven by both our core commercial lending business, as well as our Specialty Finance Group. We also experienced another quarter of a more normalized level of payoffs, which were up modestly from the first quarter, but relatively flat with the second quarter of 2018. Our loan and lease pipeline remains solid, giving us confidence that we are on track to achieve organic loan growth of between 8% and 10% for the full year.”

Net Interest Income of $38.0 million

Net interest income for the second quarter of 2019 totaled $38.0 million, compared to $36.9 million for the first quarter of 2019 and $32.1 million for the second quarter of 2018. The increase was due to growth in average interest earning assets of $85.5 million, or 1.9% on a linked quarter basis, as reported net interest margin remained stable. Acquisition-related net accretion totaled $1.1 million (pre-tax) for the second quarter of 2019, consistent with the first quarter of 2019 and was $0.5 million for the second quarter of 2018. Adjusted net interest income (non-GAAP) was $38.7 million for the second quarter of 2019, compared to $37.6 million for the first quarter of 2019 and $33.0 million for the second quarter of 2018.

In the second quarter, reported net interest margin was 3.25% and, on a tax-equivalent yield basis, net interest margin was 3.40%. Both measures remained stable relative to the first quarter of 2019. Net interest margin, excluding acquisition-related net accretion was 3.31%, also consistent with the first quarter. The stability in adjusted net interest margin during the quarter was due to the 4 basis point increase in the yield on interest earning assets, offset by a 4 basis point increase in the total cost of funds (due to both mix and rate).

 For the Quarter Ended
 June 30,Mar. 31,
 20192019
NIM3.25%3.25%
NIM (TEY)(non-GAAP)(1)3.40%3.40%
Adjusted NIM (TEY)(non-GAAP)(1)3.31%3.31%
(1)  See GAAP to non-GAAP reconciliations.  

“While competition for new deposits remained strong and deposit costs increased slightly during the quarter, our ability to gather core deposits and significantly reduce our wholesale funding enabled us to limit the increase in our cost of funds to only 4 basis points,” stated Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer. “Excluding the impact of acquisition-related accretion, our adjusted loan yields on a tax-equivalent basis also increased by 4 basis points, which resulted in a stable net interest margin for the second quarter.”

Record Noninterest Income of $17.1 million

Noninterest income for the second quarter of 2019 totaled $17.1 million, compared to $12.0 million for the first quarter of 2019. The increase was primarily due to a $4.7 million increase in swap fee income. Wealth management revenue was $4.2 million for the quarter, comparable to the first quarter of 2019. Noninterest income increased 91.5% when compared to the second quarter of 2018.

“Continued strong production from our Specialty Finance Group led to a record $7.9 million in swap fee income during the quarter. Swap fee income and gains on the sale of government guaranteed loans totaled $11.2 million for the first six months of 2019, already putting us near the high end of our full-year target of $8 to $12 million,” added Mr. Gipple.

Noninterest Expenses of $36.6 million

Noninterest expense for the second quarter of 2019 totaled $36.6 million, compared to $32.4 million and $26.4 million for the first quarter of 2019 and second quarter of 2018, respectively. The linked quarter increase was due to a number of factors, including a $0.9 million increase in net costs of operations of other real estate, as the Company reduced the carrying value of an OREO property by $1.0 million. There was also an additional $2.5 million of bonus and commission expense in the quarter, driven by the strong financial results and higher than anticipated swap fee income. Excluding post-acquisition expenses, higher incentive compensation and the OREO write-down, noninterest expense would have totaled $32.4 million.  

Asset Quality Improvement

Nonperforming assets (“NPAs”) totaled $23.2 million, a decrease of $3.2 million from the first quarter of 2019. The lower NPAs resulted in the ratio of NPAs to total assets improving to 0.45% at June 30, 2019, compared to 0.52% at March 31, 2019 and 0.65% at June 30, 2018.

The Company’s provision for loan and lease losses totaled $1.9 million for the second quarter of 2019, which was down from $2.1 million from the prior quarter and down from $2.4 million in the second quarter of 2018. The linked quarter decrease in the provision for loan and lease losses was primarily due to improved credit quality.  As of June 30, 2019, the Company’s allowance to total loans and leases was 1.05%, which was down from 1.08% at March 31, 2019 and down from 1.21% at June 30, 2018.

In accordance with generally accepted accounting principles for acquisition accounting, the loans acquired through past acquisitions were recorded at market value; therefore, there was no allowance associated with the acquired loans at the acquisition date. Management continues to evaluate the allowance needed on the acquired loans factoring in the net remaining discount ($9.3 million at June 30, 2019).

 Strong Capital Levels

As of June 30, 2019, the Company’s total risk-based capital ratio was 12.18%, the common equity Tier 1 ratio was 9.04%, and the tangible common equity to tangible assets ratio was 8.05%. By comparison, these respective ratios were 12.26%, 9.02% and 7.92% as of March 31, 2019.

Continued Focus on Seven Key Initiatives

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

  • Strong organic loan and lease growth in order to maintain loans and leases to total assets ratio in the range of 73% - 78%
  • Grow core deposits to maintain reliance on wholesale funding at less than 15% of assets
  • Generate gains on sale of government guaranteed loans, and fee income on interest rate swaps, as a significant and consistent component of core revenue
  • Grow wealth management net income by 10% annually
  • Carefully manage noninterest expense growth
  • Maintain asset quality metrics at better than peer levels
  • Participate as an acquirer in the consolidation taking place in our industry to further boost return on average assets, improve efficiency ratio, and increase EPS

Conference Call Details

The Company will host an earnings call/webcast tomorrow, July 24, 2019, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be  available for digital replay through August 8, 2019. The replay access information is toll-free: 877-344-7529 (international 412-317-0088); access code: 10133166. A webcast of the teleconference can be accessed at the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

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. In July 2018, the Company completed a merger with Springfield Bancshares, Inc., the holding company of Springfield First Community Bank of Springfield, Missouri. With this addition of Springfield First Community Bank, the Company has 27 locations in Illinois, Iowa, Wisconsin and Missouri. As of June 30, 2019, the Company had approximately $5.2 billion in assets, $3.9 billion in loans and $4.3 billion in deposits. For additional information, please visit our website at www.qcrh.com.

Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “predict,” “suggest,” “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.
               
A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies (including the impact of tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations); (ii) the economic impact of any future terrorist threats and attacks, and the response of the United States to any such threats and attacks; (iii) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business; (iv) changes in interest rates and prepayment rates of the Company’s assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x)  unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

Contacts:

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

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

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
 
 As of 
 June 30,March 31,December 31,September 30,June 30, 
  2019 2019 2018 2018 2018 
       
 (dollars in thousands) 
       
CONDENSED BALANCE SHEET      
       
Cash and due from banks$87,919$76,527$85,523$73,407$69,069 
Federal funds sold and interest-bearing deposits 205,497 216,032 159,596 129,660 51,667 
Securities 643,803 655,749 662,969 650,745 657,997 
Net loans/leases 3,869,415 3,758,268 3,692,907 3,610,309 3,077,247 
Intangibles 16,089 16,918 17,450 16,137 8,470 
Goodwill 77,748 77,872 77,832 73,618 28,091 
Other assets 294,381 265,296 253,433 238,856 214,342 
Total assets$5,194,852$5,066,662$4,949,710$4,792,732$4,106,883 
       
Total deposits$4,322,510$4,194,220$3,977,031$3,788,277$3,298,276 
Total borrowings 230,953 282,994 404,968 483,635 380,392 
Other liabilities 137,089 101,041 94,573 63,433 58,627 
Total stockholders' equity 504,300 488,407 473,138 457,387 369,588 
Total liabilities and stockholders' equity$5,194,852$5,066,662$4,949,710$4,792,732$4,106,883 
       
ANALYSIS OF LOAN PORTFOLIO      
Loan/lease mix:      
Commercial and industrial loans$1,548,657$1,479,247$1,429,410$1,380,543$1,273,000 
Commercial real estate loans 1,837,473 1,790,845 1,766,111 1,727,326 1,349,319 
Direct financing leases 101,180 108,543 117,969 126,752 133,197 
Residential real estate loans 293,479 288,502 290,759 309,288 257,434 
Installment and other consumer loans 120,947 123,087 119,381 100,191 92,952 
Deferred loan/lease origination costs, net of fees 8,783 9,208 9,124 9,286 8,890 
Total loans/leases$3,910,519$3,799,432$3,732,754$3,653,386$3,114,792 
Less allowance for estimated losses on loans/leases 41,104 41,164 39,847 43,077 37,545 
Net loans/leases$3,869,415$3,758,268$3,692,907$3,610,309$3,077,247 
       
ANALYSIS OF SECURITIES PORTFOLIO      
Securities mix:      
U.S. government sponsored agency securities$35,762$35,843$36,411$36,492$35,667 
Municipal securities 440,853 450,376 459,409 453,275 458,510 
Residential mortgage-backed and related securities 159,228 161,692 159,249 155,733 158,534 
Other securities 7,960 7,838 7,900 5,245 5,286 
Total securities$643,803$655,749$662,969$650,745$657,997 
       
ANALYSIS OF DEPOSITS      
Deposit mix:      
Noninterest-bearing demand deposits$795,951$821,599$791,101$802,090$746,822 
Interest-bearing demand deposits 2,505,956 2,334,474 2,204,206 2,094,814 1,865,382 
Time deposits 733,135 719,286 704,903 615,323 519,999 
Brokered deposits 287,468 318,861 276,821 276,050 166,073 
Total deposits$4,322,510$4,194,220$3,977,031$3,788,277$3,298,276 
       
ANALYSIS OF BORROWINGS      
Borrowings mix:      
Term FHLB advances$46,433$66,380$76,327$63,399$46,600 
Overnight FHLB advances (1) 59,300 59,800 190,165 295,730 207,500 
Wholesale structured repurchase agreements - 35,000 35,000 35,000 35,000 
Customer repurchase agreements 2,181 3,056 2,084 3,049 2,186 
Federal funds purchased 17,010 12,830 26,690 8,670 15,400 
Subordinated notes 68,274 68,215 4,782 - - 
Junior subordinated debentures 37,755 37,713 37,670 37,626 37,581 
Other borrowings - - 32,250 40,161 36,125 
Total borrowings$230,953$282,994$404,968$483,635$380,392 
       
(1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 2.39%.   
       

 

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited) 
 
   For the Quarter Ended 
   June 30,March 31December 31,September 30,June 30, 
    2019  2019 2018  2018  2018  
         
   (dollars in thousands, except per share data) 
         
INCOME STATEMENT       
Interest income $  54,181 $  52,102$  52,703 $  49,831 $  40,799  
Interest expense    16,168    15,194   13,110    11,517    8,714  
Net interest income     38,013    36,908   39,593    38,314    32,085  
Provision for loan/lease losses    1,941    2,134   1,611    6,206    2,301  
Net interest income after provision for loan/lease losses $36,072 $34,774$37,982 $32,108 $29,784  
         
         
Trust department fees $  2,361 $  2,493$  2,216 $  2,196 $  2,058  
Investment advisory and management fees    1,888    1,736   1,657    1,059    1,058  
Deposit service fees    1,658    1,554   1,623    1,656    1,610  
Gain on sales of residential real estate loans, net    489    369   361    337    102  
Gain on sales of government guaranteed portions of loans, net    39    31   -     46    -   
Swap fee income    7,891    3,198   7,069    1,110    1,649  
Securities losses, net    (52)   -    -     -     -   
Earnings on bank-owned life insurance    412    540   341    474    399  
Debit card fees    914    792   807    846    844  
Correspondent banking fees    172    216   179    195    213  
Other      1,293    1,064   1,026    890    979  
Total noninterest income $17,065 $11,993$15,279 $8,809 $8,912  
         
         
Salaries and employee benefits $  22,749 $  20,879$  19,779 $  17,433 $  15,804  
Occupancy and equipment expense    3,533    3,694   3,367    3,318    3,133  
Professional and data processing fees    3,031    2,750   3,577    2,396    2,771  
Acquisition costs    -     -    (4)   1,292    414  
Post-acquisition compensation, transition and integration costs    708    134   1,427    494    165  
FDIC insurance, other insurance and regulatory fees    926    964   1,065    933    840  
Loan/lease expense    312    214   624    369    260  
Net cost and gains/losses on operations of other real estate    1,182    298   2,477    (50)   (70) 
Advertising and marketing    1,037    785   1,122    984    753  
Bank service charges    508    483   469    462    466  
Correspondent banking expense    206    204   207    205    204  
Intangibles amortization    615    532   540    542    305  
Other     1,753    1,498   1,760    2,122    1,325  
Total noninterest expense $36,560 $32,435$36,410 $30,500 $26,370  
         
Net income before taxes $16,577 $14,332$16,851 $10,417 $12,326  
Federal and state income tax expense  3,073  1,414 3,535  1,608  1,881  
Net income  $13,504 $12,918$13,316 $8,809 $10,445  
         
Basic EPS $  0.86 $  0.82$  0.85 $  0.56 $  0.75  
Diluted EPS $  0.85 $  0.81$  0.84 $  0.55 $  0.73  
         
Weighted average common shares outstanding    15,714,588    15,693,345   15,641,401    15,625,123    13,919,565  
Weighted average common and common equivalent shares outstanding   15,938,377    15,922,940   15,898,591    15,922,324    14,232,423  
         

 

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
   For the Six Months Ended
   June 30, June 30,
    2019   2018
      
   (dollars in thousands, except per share data)
      
INCOME STATEMENT    
Interest income $106,283  $80,345
Interest expense  31,362   15,857
Net interest income  74,921   64,488
Provision for loan/lease losses  4,075   4,841
Net interest income after provision for loan/lease losses $   70,846   $   59,647
      
      
Trust department fees $4,854  $4,295
Investment advisory and management fees  3,624   2,010
Deposit service fees  3,212   3,142
Gain on sales of residential real estate loans  858   203
Gain on sales of government guaranteed portions of loans  70   358
Swap fee income  11,089   2,608
Securities losses, net  (52)  -
Earnings on bank-owned life insurance  952   817
Debit card fees  1,706   1,610
Correspondent banking fees  388   477
Other   2,357   1,934
Total noninterest income $   29,058   $   17,454
      
      
Salaries and employee benefits $43,628  $31,782
Occupancy and equipment expense  7,227   6,198
Professional and data processing fees  5,781   5,479
Acquisition costs  -   506
Post-acquisition compensation, transition and integration costs  842   165
FDIC insurance, other insurance and regulatory fees  1,890   1,597
Loan/lease expense  526   551
Net cost of operation of other real estate  1,480   62
Advertising and marketing  1,822   1,446
Bank service charges  991   907
Correspondent banking expense  410   409
Intangibles amortization  1,147   609
Other   3,251   2,523
Total noninterest expense $   68,995   $   52,234
      
Net income before taxes $   30,909   $   24,867
Income tax expense  4,487   3,872
Net income  $   26,422   $   20,995
      
Basic EPS $1.68  $1.51
Diluted EPS $1.66  $1.48
      
Weighted average common shares outstanding  15,703,967   13,904,113
Weighted average common and common equivalent shares outstanding 15,930,659   14,219,003
      

 

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,  
  2019  2019  2018  2018  2018   2019  2018   
           
 (dollars in thousands, except per share data)  
 
COMMON SHARE DATA          
Common shares outstanding 15,772,939  15,755,442  15,718,208  15,673,760  13,973,940      
Book value per common share (1)$31.97 $31.00 $30.10 $29.18 $26.45      
Tangible book value per common share (2)$26.02 $24.98 $24.04 $23.46 $23.83      
Closing stock price$34.87 $33.92 $32.09 $40.85 $47.45      
Market capitalization$550,002 $534,425 $504,397 $640,273 $663,063      
Market price / book value 109.06%  109.42%  106.61%  139.98%  179.41%      
Market price / tangible book value 134.00%  135.77%  133.49%  174.16%  199.10%      
Earnings per common share (basic) LTM (3)$3.10 $2.99 $2.92 $2.79 $2.83      
Price earnings ratio LTM (3)11.25 x 11.34 x 10.98 x 14.64 x 16.77 x      
TCE / TA (4) 8.05%  7.92%  7.78%  7.82%  8.18%      
           
           
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY      
Beginning balance$488,407 $473,138 $457,387 $369,588 $360,428      
Net income 13,504  12,918  13,316  8,809  10,445      
Other comprehensive income (loss), net of tax 2,243  2,343  1,943  (612) (1,335)     
Common stock cash dividends declared (942) (942) (939) (938) (836)     
Proceeds from issuance of 1,689,561 shares of
  common stock, net of costs, as a result of the
  acquisition of Springfield First Community Bank
 -  -  -  80,063  -      
Proceeds from issuance of 23,501 shares of
  common stock, net of costs, as a result of the
  acquisition of Bates Companies
 -  -  1,000  -  -      
Other (5) 1,088  950  431  477  886      
Ending balance$   504,300  $   488,407  $   473,138  $   457,387  $   369,588       
           
           
REGULATORY CAPITAL RATIOS (6):          
Total risk-based capital ratio 12.18%  12.26%  10.69%  10.87%  11.23%      
Tier 1 risk-based capital ratio 9.87%  9.87%  9.77%  9.83%  10.19%      
Tier 1 leverage capital ratio 8.96%  8.90%  8.87%  8.87%  9.22%      
Common equity tier 1 ratio 9.04%  9.02%  8.89%  8.92%  9.16%      
           
           
KEY PERFORMANCE RATIOS AND OTHER METRICS          
Return on average assets (annualized) 1.06%  1.04%  1.10%  0.75%  1.03%   1.05%  1.04%   
Return on average total equity (annualized) 10.84%  10.71%  11.42%  8.08%  11.45%   10.78%  11.64%   
Net interest margin 3.25%  3.25%  3.48%  3.46%  3.37%   3.25%  3.43%   
Net interest margin (TEY) (Non-GAAP)(7) 3.40%  3.40%  3.63%  3.60%  3.52%   3.40%  3.58%   
Efficiency ratio (Non-GAAP) (8) 66.38%  66.33%  66.35%  64.72%  64.32%   66.35%  63.75%   
Gross loans and leases / total assets 75.28%  74.99%  75.41%  76.23%  75.84%   75.28%  75.84%   
Gross loans and leases / total deposits 90.47%  90.59%  93.86%  96.44%  94.44%   90.47%  94.44%   
Effective tax rate 18.54%  9.87%  20.98%  15.44%  15.26%   14.52%  15.57%   
Full-time equivalent employees (9) 773  771  755  728  666   773  666   
           
           
AVERAGE BALANCES           
Assets$5,077,900 $4,968,502 $4,842,232 $4,677,875 $4,053,684  $5,023,201 $4,024,188   
Loans/leases 3,839,674  3,759,615  3,699,885  3,612,648  3,077,517   3,799,645  3,048,447   
Deposits 4,271,391  4,110,868  3,986,236  3,840,077  3,343,003   4,191,130  3,291,283   
Total stockholders' equity   498,263    482,423    466,271    436,065    365,031     490,343    360,778   
           
(1) Includes accumulated other comprehensive income (loss).   
(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets.   
(3) LTM : Last twelve months.   
(4) TCE / TCA : tangible common equity / total tangible assets.  See GAAP to non-GAAP reconciliations.   
(5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.   
(6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.   
(7) TEY : Tax equivalent yield.  See GAAP to Non-GAAP reconciliations.   
(8) See GAAP to Non-GAAP reconciliations.   
(9) Growth in full-time equivalents due primarily to the merger with Springfield Bancshares, Inc., the acquisition of the Bates Companies and the addition of several new positions created to build scale.  
       

 

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
ANALYSIS OF NET INTEREST INCOME AND MARGIN           
             
  For the Quarter Ended
  June 30, 2019 March 31, 2019 June 30, 2018
   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 $9,690$562.32% $15,736$932.40% $18,561$611.32%
Interest-bearing deposits at financial institutions 182,651 1,1682.56%  155,463 9232.41%  54,879 2281.67%
Securities (1)  644,999 6,0623.77%  660,454 6,0963.74%  648,276 5,7523.56%
Restricted investment securities 21,007 2905.54%  21,285 3075.85%  21,100 2124.03%
Loans (1)  3,839,674 48,4135.06%  3,759,615 46,4775.01%  3,077,517 36,0084.69%
Total earning assets (1)$4,698,021$55,9894.78% $4,612,553$53,8964.74% $3,820,333$42,2614.44%
             
Interest-bearing deposits$2,461,768$8,2711.35% $2,288,109$7,1741.27% $1,919,406$4,0890.85%
Time deposits  1,013,391 5,5542.20%  1,012,459 5,3052.12%  665,643 2,4391.47%
Short-term borrowings 16,145 812.01%  14,377 712.00%  19,024 631.33%
Federal Home Loan Bank advances 76,154 6013.17%  147,355 1,0602.92%  174,826 1,0192.34%
Other borrowings  10,550 923.50%  43,701 4484.16%  67,044 5963.57%
Subordinated debentures 68,239 9935.84%  38,637 5645.92%  - -0.00%
Junior subordinated debentures 37,731 5766.12%  37,686 5726.16%  37,558 5085.43%
Total interest-bearing liabilities$3,683,978$16,1681.76% $3,582,324$15,1941.72% $2,883,501$8,7141.21%
             
Net interest income / spread (1) $39,8213.02%  $38,7023.02%  $33,5473.23%
Net interest margin (2)  3.25%   3.25%   3.37%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.40%   3.40%   3.52%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.31%   3.31%   3.46%
             
             
             
  For the Six Months Ended    
  June 30, 2019 June 30, 2018  
  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 $12,713$1502.38% $19,132$1181.24%    
Interest-bearing deposits at financial institutions 169,057 2,0912.49%  52,205 4251.64%    
Securities (1)  652,727 12,1583.76%  648,656 11,4183.55%    
Restricted investment securities 21,146 5985.70%  21,465 4464.19%    
Loans (1)  3,799,645 94,7955.03%  3,048,447 70,7534.68</