MOLINE, Ill., April 20, 2016 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ:QCRH) today announced net income of $6.4 million and diluted earnings per share (“EPS”) of $0.53 for the quarter ended March 31, 2016. By comparison, for the quarter ended December 31, 2015, the Company reported net income of $6.8 million and diluted EPS of $0.57. For the first quarter of 2015, the Company reported net income of $4.2 million, and diluted EPS of $0.52.
“We started out the year strong and are quite pleased with our operating performance,” commented Douglas M. Hultquist, President and Chief Executive Officer, “as net interest margin significantly expanded, organic loan growth was strong, growth in noninterest bearing deposits was solid and fee income for the quarter was robust. Our return on average assets (“ROAA”) has improved significantly from 0.67% a year ago to 0.98% in the current quarter. We have nearly achieved our targeted ROAA of 1.00% and we expect to continue to enhance profitability through our ongoing key initiatives.”
Net Interest Margin Expanded 18 Basis Points in First Quarter
and 34 Basis Points Year-Over-Year
Net interest income totaled $20.6 million for the quarter ended March 31, 2016. By comparison, net interest income totaled $19.9 million and $17.8 million for the quarters ended December 31, 2015 and March 31, 2015, respectively.
“Net interest margin increased 18 basis points from the prior quarter to 3.59%,” stated Todd A. Gipple, Executive Vice President, Chief Operating Officer and Chief Financial Officer. He added, “We were successful in improving loan yield as the impact of the December 2015 increase in the prime rate was fully recognized. Additionally, excess liquidity was reduced by approximately $56.7 million due to very strong loan and lease growth, increasing the yield on average earning assets to 4.07%, an improvement of 17 basis points. On the funding side, we further reduced our cost of wholesale funding by 8 basis points with the modest balance sheet restructurings that were executed in the fourth quarter of 2015 and early in the first quarter of 2016.”
Loan and Lease Growth Very Strong at 4.2% for Quarter
Swap Fee Income and Gains on the Sale of Government Guaranteed Loans Total $1.7 Million for the Quarter
During the first quarter of 2016, the Company’s total assets increased $47.5 million, or 2%, to a total of $2.64 billion, while total loans and leases grew $75.8 million. The loan and lease growth was funded primarily by deposit growth and reductions in the securities portfolio. Deposits grew $108.9 million, or 6%, during the quarter, while borrowings decreased $96.3 million.
“Loan and lease growth for the quarter totaled $75.8 million, or an annualized rate of 16.9%,” commented Mr. Gipple. “Loan and lease growth was very strong in the first quarter, helping us exceed our targeted annual organic growth rate of 10-12%. Solid loan and lease growth has continued to help us move our loan and lease to total asset ratio upward to 71%, from 69% in the fourth quarter of 2015 and from 66% one year ago.”
“Swap fee income and gains on the sale of government guaranteed loans are off to a very strong start in the first quarter of 2016, totaling $1.7 million,” said Mr. Gipple. “We plan to continue executing these types of transactions, as they provide unique solutions for our clients. Our goal is to grow these revenue streams to a combined $4.0 million annually.”
Nonperforming Assets Flat During the First Quarter
Nonperforming assets (“NPAs”) stayed relatively flat from the prior quarter and the ratio of nonperforming assets to total assets was 0.71% at March 31, 2016, which was down from 0.74% at December 31, 2015 and down from 1.21% a year ago.
“Although NPAs remained relatively flat from the prior quarter, we remain committed to further improving our asset quality ratios in 2016,” stated Mr. Hultquist.
The Company’s provision for loan and lease losses totaled $2.1 million for the first quarter of 2016, which was up $896 thousand from the prior quarter, and up $363 thousand compared to the first quarter of 2015. The increase in provision was primarily due to the strong loan growth experienced this quarter. As of March 31, 2016, the Company’s allowance to total loans and leases was 1.46%, which was up from 1.45% and 1.44% at December 31, 2015 and March 31, 2015, respectively.
The Company’s allowance to total nonperforming loans and leases was 229% at March 31, 2016, which was up from 223% at December 31, 2015, and up from 144% at March 31, 2015, as improved asset quality has resulted in an increased coverage ratio.
Capital Levels Remain Strong
The Company’s total risk-based capital ratio was 13.01%, the common equity tier 1 ratio was 10.46% and the tangible common equity to tangible common assets ratio increased to 8.74%, all as of March 31, 2016. For comparison, these respective ratios were 10.30%, 7.24% and 5.88% as of March 31, 2015, which was the quarter prior to the Company’s capital issuance and debt restructuring previously discussed. Both the total risk-based capital ratio and the common equity tier 1 ratio are well above the fully phased-in requirements under Basel III. The increase in the Company’s capital ratios was primarily due to the capital raise executed in the second quarter of 2015, as well as strong earnings in the second half of 2015 and the first quarter of 2016.
Continued Focus on Seven Key Initiatives
The Company continues to focus on the following initiatives in an ongoing effort to continue to improve profitability and drive increased shareholder value:
- Target loans and leases to total assets ratio in the range of 70-75%
- Continue to reduce wholesale funding to less than 15% of assets
- Grow gains on the sale of USDA and SBA loans, and fee income on swaps, to a more significant and consistent component of core revenue
- Grow wealth management net income by 15% annually
- Eliminate identified noninterest expenses and manage annual expense growth
- Return asset quality metrics to 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
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, 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, 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. With the acquisition of Community National Bancorporation in 2013, 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 and national economy; (ii) the economic impact of any future terrorist threats and attacks, and the response of the United States to any such threats and attacks; (iii) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business, including the Basel III regulatory capital reforms, the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations issued thereunder; (iv) changes in interest rates and prepayment rates of the Company’s assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the integration of acquired entities; (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.
| As of | ||||||||||||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||||||||||||
| 2016 | 2015 | 2015 | ||||||||||||||||||||||
| (dollars in thousands, except share data) | ||||||||||||||||||||||||
| CONDENSED BALANCE SHEET | Amount | % | Amount | % | ||||||||||||||||||||
| Cash and due from banks | $ | 44,931 | 2 | % | $ | 41,742 | 2 | % | $ | 45,138 | 2 | % | ||||||||||||
| Federal funds sold and interest-bearing deposits | 57,229 | 2 | % | 56,164 | 2 | % | 31,154 | 1 | % | |||||||||||||||
| Securities | 537,317 | 20 | % | 577,109 | 22 | % | 637,404 | 26 | % | |||||||||||||||
| Net loans/leases | 1,846,428 | 70 | % | 1,771,882 | 68 | % | 1,630,568 | 65 | % | |||||||||||||||
| Core deposit intangible | 1,422 | 0 | % | 1,471 | 0 | % | 1,621 | 0 | % | |||||||||||||||
| Goodwill | 3,223 | 0 | % | 3,223 | 0 | % | 3,223 | 0 | % | |||||||||||||||
| Other assets | 150,123 | 6 | % | 141,607 | 6 | % | 142,551 | 6 | % | |||||||||||||||
| Total assets | $ | 2,640,673 | 100 | % | $ | 2,593,198 | 100 | % | $ | 2,491,659 | 100 | % | ||||||||||||
| Total deposits | $ | 1,989,573 | 75 | % | $ | 1,880,666 | 72 | % | $ | 1,734,269 | 70 | % | ||||||||||||
| Total borrowings | 347,901 | 13 | % | 444,162 | 17 | % | 569,404 | 23 | % | |||||||||||||||
| Other liabilities | 68,056 | 3 | % | 42,484 | 2 | % | 36,990 | 1 | % | |||||||||||||||
| Total stockholders' equity | 235,143 | 9 | % | 225,886 | 9 | % | 150,996 | 6 | % | |||||||||||||||
| Total liabilities and stockholders' equity | $ | 2,640,673 | 100 | % | $ | 2,593,198 | 100 | % | $ | 2,491,659 | 100 | % | ||||||||||||
| SELECTED INFORMATION FOR COMMON STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
| Common stockholders' equity (1) | $ | 235,143 | $ | 225,886 | $ | 150,996 | ||||||||||||||||||
| Common shares outstanding | 11,814,911 | 11,761,083 | 7,991,794 | |||||||||||||||||||||
| Book value per common share (1) | $ | 19.90 | $ | 19.21 | $ | 18.89 | ||||||||||||||||||
| Tangible book value per common share (2) | $ | 19.51 | $ | 18.81 | $ | 18.29 | ||||||||||||||||||
| Closing stock price | $ | 23.79 | $ | 24.29 | $ | 17.85 | ||||||||||||||||||
| Market capitalization | $ | 281,077 | $ | 285,677 | $ | 142,654 | ||||||||||||||||||
| Market price / book value | 119.53 | % | 126.47 | % | 94.48 | % | ||||||||||||||||||
| Market price / tangible book value | 121.94 | % | 129.15 | % | 97.61 | % | ||||||||||||||||||
| Tangible common equity / total tangible assets (TCE/TA) (3) | 8.74 | % | 8.55 | % | 5.88 | % | ||||||||||||||||||
| REGULATORY CAPITAL RATIOS: | ||||||||||||||||||||||||
| Total risk-based capital ratio | 13.01 | % | (4 | ) | 13.11 | % | 10.30 | % | ||||||||||||||||
| Tier 1 risk-based capital ratio | 11.74 | % | (4 | ) | 11.88 | % | 9.00 | % | ||||||||||||||||
| Tier 1 leverage capital ratio | 9.85 | % | (4 | ) | 9.75 | % | 7.14 | % | ||||||||||||||||
| Common equity tier 1 ratio | 10.46 | % | (4 | ) | 10.33 | % | 7.24 | % | ||||||||||||||||
| For the quarter ended March 31, | ||||||||||||||||||||||||
| CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | 2016 | 2015 | ||||||||||||||||||||||
| Beginning balance | $ | 225,886 | $ | 144,079 | ||||||||||||||||||||
| Net income | 6,373 | 4,178 | ||||||||||||||||||||||
| Other comprehensive income, net of tax | 2,525 | 2,221 | ||||||||||||||||||||||
| Common cash dividends declared | (471 | ) | - | |||||||||||||||||||||
| Other (5) | 830 | 518 | ||||||||||||||||||||||
| Ending balance | $ | 235,143 | $ | 150,996 | ||||||||||||||||||||
| (1) Includes accumulated other comprehensive income (loss). | ||||||||||||||||||||||||
| (2) Includes accumulated other comprehensive income (loss) and excludes intangible assets. | ||||||||||||||||||||||||
| (3) See GAAP to non-GAAP reconciliations. | ||||||||||||||||||||||||
| (4) Subject to change upon final calculation for regulatory filings due after earnings release. | ||||||||||||||||||||||||
| (5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation. | ||||||||||||||||||||||||
| As of | |||||||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||||||
| 2016 | 2015 | 2015 | |||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| ANALYSIS OF LOAN DATA | Amount | % | Amount | % | Amount | % | |||||||||||||||
| Loan/lease mix: | |||||||||||||||||||||
| Commercial and industrial loans | $ | 682,057 | 36 | % | $ | 648,160 | 36 | % | $ | 534,885 | 32 | % | |||||||||
| Commercial real estate loans | 766,159 | 41 | % | 724,369 | 40 | % | 709,682 | 43 | % | ||||||||||||
| Direct financing leases | 172,774 | 9 | % | 173,656 | 10 | % | 167,244 | 10 | % | ||||||||||||
| Residential real estate loans | 173,096 | 9 | % | 170,433 | 10 | % | 163,740 | 10 | % | ||||||||||||
| Installment and other consumer loans | 71,842 | 4 | % | 73,669 | 4 | % | 71,902 | 5 | % | ||||||||||||
| Deferred loan/lease origination costs, net of fees | 7,895 | 0 | % | 7,736 | 0 | % | 6,998 | 0 | % | ||||||||||||
| Total loans/leases | $ | 1,873,823 | 100 | % | $ | 1,798,023 | 100 | % | $ | 1,654,451 | 100 | % | |||||||||
| Less allowance for estimated losses on loans/leases | 27,395 | 26,141 | 23,883 | ||||||||||||||||||
| Net loans/leases | $ | 1,846,428 | $ | 1,771,882 | $ | 1,630,568 | |||||||||||||||
| ANALYSIS OF SECURITIES DATA | |||||||||||||||||||||
| Securities mix: | |||||||||||||||||||||
| U.S. government sponsored agency securities | $ | 132,742 | 25 | % | $ | 213,537 | 37 | % | $ | 299,180 | 47 | % | |||||||||
| Municipal securities | 285,009 | 53 | % | 280,203 | 49 | % | 243,810 | 38 | % | ||||||||||||
| Residential mortgage-backed and related securities | 116,452 | 22 | % | 80,670 | 14 | % | 91,363 | 14 | % | ||||||||||||
| Other securities | 3,114 | 0 | % | 2,699 | 0 | % | 3,051 | 1 | % | ||||||||||||
| Total securities | $ | 537,317 | 100 | % | $ | 577,109 | 100 | % | $ | 637,404 | 100 | % | |||||||||
| ANALYSIS OF DEPOSIT DATA | |||||||||||||||||||||
| Deposit mix: | |||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 641,859 | 32 | % | $ | 615,292 | 33 | % | $ | 582,510 | 34 | % | |||||||||
| Interest-bearing demand deposits | 916,455 | 46 | % | 886,294 | 47 | % | 794,327 | 46 | % | ||||||||||||
| Time deposits | 331,786 | 17 | % | 309,974 | 16 | % | 279,660 | 16 | % | ||||||||||||
| Brokered deposits | 99,473 | 5 | % | 69,106 | 4 | % | 77,772 | 4 | % | ||||||||||||
| Total deposits | $ | 1,989,573 | 100 | % | $ | 1,880,666 | 100 | % | $ | 1,734,269 | 100 | % | |||||||||
| ANALYSIS OF BORROWINGS DATA | |||||||||||||||||||||
| Borrowings mix: | |||||||||||||||||||||
| FHLB advances | $ | 150,500 | 43 | % | $ | 151,000 | 34 | % | $ | 196,500 | 35 | % | |||||||||
| Wholesale structured repurchase agreements | 100,000 | 29 | % | 110,000 | 25 | % | 130,000 | 23 | % | ||||||||||||
| Customer repurchase agreements | 52,153 | 15 | % | 73,873 | 16 | % | 150,796 | 26 | % | ||||||||||||
| Federal funds purchased | 11,870 | 3 | % | 70,790 | 16 | % | 32,540 | 6 | % | ||||||||||||
| Junior subordinated debentures | 33,378 | 10 | % | 38,499 | 9 | % | 40,458 | 7 | % | ||||||||||||
| Other | - | 0 | % | - | 0 | % | 19,110 | 3 | % | ||||||||||||
| Total borrowings | $ | 347,901 | 100 | % | $ | 444,162 | 100 | % | $ | 569,404 | 100 | % | |||||||||
| As of | |||||||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||||||
| 2016 | 2015 | 2015 | |||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||
| NONPERFORMING ASSETS | Amount | % | Amount | % | Amount | % | |||||||||||||||
| Nonaccrual loans/leases | $ | 10,772 | 58 | % | $ | 10,648 | 56 | % | $ | 14,529 | 48 | % | |||||||||
| Accruing loans/leases past due 90 days or more | 47 | 0 | % | 3 | 0 | % | 668 | 2 | % | ||||||||||||
| Troubled debt restructures - accruing | 1,157 | 6 | % | 1,054 | 6 | % | 1,348 | 5 | % | ||||||||||||
| Total nonperforming loans/leases | 11,976 | 64 | % | 11,705 | 61 | % | 16,545 | 55 | % | ||||||||||||
| Other real estate owned | 6,680 | 36 | % | 7,151 | 37 | % | 13,245 | 44 | % | ||||||||||||
| Other repossessed assets | 46 | 0 | % | 246 | 1 | % | 326 | 1 | % | ||||||||||||
| Total nonperforming assets | $ | 18,702 | 100 | % | $ | 19,102 | 100 | % | $ | 30,116 | 100 | % | |||||||||
| For the quarter ended March 31, | |||||||||||||||||||||
| ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES | 2016 | 2015 | |||||||||||||||||||
| Beginning balance | $ | 26,141 | $ | 23,074 | |||||||||||||||||
| Provision charged to expense | 2,073 | 1,710 | |||||||||||||||||||
| Loans/leases charged off | (868 | ) | (1,107 | ) | |||||||||||||||||
| Recoveries on loans/leases previously charged off | 49 | 206 | |||||||||||||||||||
| Ending balance | $ | 27,395 | $ | 23,883 | |||||||||||||||||
| Net charge-offs / average loans/leases | 0.04 | % | 0.06 | % | |||||||||||||||||
| As of | |||||||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||||||
| 2016 | 2015 | 2015 | |||||||||||||||||||
| ASSET QUALITY RATIOS | |||||||||||||||||||||
| Nonperforming assets / total assets | 0.71 | % | 0.74 | % | 1.21 | % | |||||||||||||||
| Allowance / total loans/leases (1) | 1.46 | % | 1.45 | % | 1.44 | % | |||||||||||||||
| Allowance / nonperforming loans (1) | 228.75 | % | 223.33 | % | 144.35 | % | |||||||||||||||
| (1) Upon acquisition per GAAP, the acquired loans are recorded at market value which eliminated the allowance and impacts these ratios. | |||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||
| 2016 | 2015 | 2015 | |||||||||||||
| (dollars in thousands, except per share data) | |||||||||||||||
| CONDENSED INCOME STATEMENT | |||||||||||||||
| Interest income | $ | 23,502 | $ | 22,910 | $ | 21,902 | |||||||||
| Interest expense | 2,905 | 3,024 | 4,120 | ||||||||||||
| Net interest income | 20,597 | 19,886 | 17,782 | ||||||||||||
| Provision for loan/lease losses | 2,073 | 1,177 | 1,710 | ||||||||||||
| Net interest income after provision for loan/lease losses | 18,524 | 18,709 | 16,072 | ||||||||||||
| Noninterest income | 6,822 | 6,178 | 6,222 | ||||||||||||
| Noninterest expense | 16,954 | 15,839 | 17,205 | ||||||||||||
| Net income before taxes | 8,392 | 9,048 | 5,089 | ||||||||||||
| Income tax expense | 2,019 | 2,263 | 911 | ||||||||||||
| Net income attributable to QCR Holdings, Inc. common stockholders | $ | 6,373 | $ | 6,785 | $ | 4,178 | |||||||||
| Earnings per common share: | |||||||||||||||
| Basic | $ | 0.54 | $ | 0.58 | $ | 0.52 | |||||||||
| Diluted | $ | 0.53 | $ | 0.57 | $ | 0.52 | |||||||||
| Earnings per common share (basic) LTM (1) | $ | 1.62 | $ | 1.64 | $ | 1.87 | |||||||||
| Weighted average common shares outstanding | 11,793,620 | 11,744,495 | 7,975,910 | ||||||||||||
| Weighted average common and common equivalent shares outstanding | 11,953,949 | 11,926,038 | 8,097,444 | ||||||||||||
| AVERAGE BALANCES | |||||||||||||||
| Assets | $ | 2,602,350 | $ | 2,611,276 | $ | 2,506,497 | |||||||||
| Loans/leases | $ | 1,833,950 | $ | 1,764,275 | $ | 1,635,705 | |||||||||
| Deposits | $ | 1,980,056 | $ | 1,978,737 | $ | 1,747,205 | |||||||||
| Total stockholders' equity | $ | 231,247 | $ | 223,553 | $ | 148,139 | |||||||||
| KEY PERFORMANCE RATIOS AND OTHER METRICS | |||||||||||||||
| Return on average assets (annualized) (2) | 0.98 | % | 1.04 | % | 0.67 | % | |||||||||
| Return on average total equity (annualized) (2) | 11.02 | % | 12.14 | % | 11.28 | % | |||||||||
| Price earnings ratio LTM (1) | 14.69 | x | 14.81 | x | 9.55 | ||||||||||
| Net interest margin (TEY) | 3.59 | % | 3.41 | % | 3.25 | % | |||||||||
| Efficiency ratio | 61.83 | % | 60.77 | % | 71.68 | % | |||||||||
| Gross loans and leases / total assets ratio | 70.96 | % | 69.34 | % | 66.40 | % | |||||||||
| Full-time equivalent employees | 406 | 406 | 411 | ||||||||||||
| (1 | )LTM: Last twelve months. | ||||||||||||||
| ANALYSIS OF NET INTEREST INCOME AND MARGIN | |||||||||||||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||||||||||||||
| March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||||||||||||||||||||||
| Average Balance | Interest Earned or Paid | Average Yield or Cost | Average Balance | Interest Earned or Paid | Average Yield or Cost | Average Balance | Interest Earned or Paid | Average Yield or Cost | |||||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||||
| Securities (1) | $ | 550,371 | $ | 4,685 | 3.42 | % | $ | 572,531 | $ | 4,673 | 3.24 | % | $ | 625,834 | $ | 4,492 | 2.91 | % | |||||||||||||
| Loans (1) | 1,833,950 | 19,955 | 4.38 | % | 1,764,275 | 19,330 | 4.35 | % | 1,635,705 | 18,304 | 4.54 | % | |||||||||||||||||||
| Other | 72,007 | 204 | 1.14 | % | 128,691 | 228 | 0.70 | % | 99,604 | 223 | 0.91 | % | |||||||||||||||||||
| Total earning assets (1) | $ | 2,456,328 | $ | 24,844 | 4.07 | % | $ | 2,465,497 | $ | 24,231 | 3.90 | % | $ | 2,361,143 | $ | 23,019 | 3.95 | % | |||||||||||||
| Deposits | $ | 1,324,850 | $ | 1,290 | 0.39 | % | $ | 1,271,612 | $ | 1,199 | 0.37 | % | $ | 1,161,715 | $ | 1,072 | 0.37 | % | |||||||||||||
| Borrowings | 351,363 | 1,614 | 1.85 | % | 374,602 | 1,825 | 1.93 | % | 576,845 | 3,047 | 2.14 | % | |||||||||||||||||||
| Total interest-bearing liabilities | $ | 1,676,213 | $ | 2,904 | 0.70 | % | $ | 1,646,214 | $ | 3,024 | 0.73 | % | $ | 1,738,560 | 4,119 | 0.96 | % | ||||||||||||||
| Net interest income / spread (1) | $ | 21,940 | 3.37 | % | $ | 21,207 | 3.17 | % | $ | 18,900 | 2.99 | % | |||||||||||||||||||
| Net interest margin (1) | 3.59 | % | 3.41 | % | 3.25 | % | |||||||||||||||||||||||||
| (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. | |||||||||||||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||||||||||||||||
| March 31, 2016 | December 31, 2015 | March 31, 2015 | |||||||||||||||||||||||||||||
| ANALYSIS OF NONINTEREST INCOME | (dollars in thousands) | ||||||||||||||||||||||||||||||
| Trust department fees | $ | 1,576 | $ | 1,455 | $ | 1,633 | |||||||||||||||||||||||||
| Investment advisory and management fees | 658 | 721 | 710 | ||||||||||||||||||||||||||||
| Deposit service fees | 931 | 1,003 | 901 | ||||||||||||||||||||||||||||
| Gain on sales of residential real estate loans | 60 | 57 | 86 | ||||||||||||||||||||||||||||
| Gain on sales of government guaranteed portions of loans | 879 | 405 | 71 | ||||||||||||||||||||||||||||
| Swap fee income | 857 | 535 | 726 | ||||||||||||||||||||||||||||
| Securities gains, net | 358 | 325 | 421 | ||||||||||||||||||||||||||||
| Earnings on bank-owned life insurance | 394 | 443 | 479 | ||||||||||||||||||||||||||||
| Debit card fees | 308 | 290 | 238 | ||||||||||||||||||||||||||||
| Correspondent banking fees | 302 | 275 | 320 | ||||||||||||||||||||||||||||
| Participation service fees on commercial loan participations | 211 | 218 | 222 | ||||||||||||||||||||||||||||
| Fee income from early termination of leases | 12 | 46 | 85 | ||||||||||||||||||||||||||||
| Credit card issuing fees | 137 | 134 | 134 | ||||||||||||||||||||||||||||
| Other | 139 | 271 | 196 | ||||||||||||||||||||||||||||
| Total noninterest income | $ | 6,822 | $ | 6,178 | $ | 6,222 | |||||||||||||||||||||||||
| ANALYSIS OF NONINTEREST EXPENSE | |||||||||||||||||||||||||||||||
| Salaries and employee benefits | $ | 10,801 | $ | 10,258 | $ | 11,034 | |||||||||||||||||||||||||
| Occupancy and equipment expense | 1,827 | 1,535 | 1,794 | ||||||||||||||||||||||||||||
| Professional and data processing fees | 1,447 | 840 | 1,471 | ||||||||||||||||||||||||||||
| FDIC insurance, other insurance and regulatory fees | 634 | 573 | 719 | ||||||||||||||||||||||||||||
| Loan/lease expense | 163 | 281 | 303 | ||||||||||||||||||||||||||||
| Net cost of operation of other real estate | 102 | (4 | ) | 77 | |||||||||||||||||||||||||||
| Advertising and marketing | 386 | 532 | 418 | ||||||||||||||||||||||||||||
| Postage and communications | 217 | 252 | 249 | ||||||||||||||||||||||||||||
| Stationery and supplies | 165 | 171 | 143 | ||||||||||||||||||||||||||||
| Bank service charges | 416 | 396 | 337 | ||||||||||||||||||||||||||||
| Losses on debt extinguishment, net | 83 | 291 | - | ||||||||||||||||||||||||||||
| Correspondent banking expense | 177 | 186 | 176 | ||||||||||||||||||||||||||||
| Other | 536 | 528 | 484 | ||||||||||||||||||||||||||||
| Total noninterest expense | $ | 16,954 | $ | 15,839 | $ | 17,205 | |||||||||||||||||||||||||
| For the Quarter Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | |||||||||||||||
| SELECT FINANCIAL DATA - SUBSIDIARIES | 2016 | 2015 | 2015 | ||||||||||||||
| (dollars in thousands) | |||||||||||||||||
| TOTAL ASSETS | |||||||||||||||||
| Quad City Bank and Trust (1) | $ | 1,361,607 | $ | 1,336,572 | $ | 1,268,169 | |||||||||||
| m2 Lease Funds, LLC | 205,777 | 202,685 | 183,217 | ||||||||||||||
| Cedar Rapids Bank and Trust | 885,858 | 866,872 | 855,417 | ||||||||||||||
| Rockford Bank and Trust | 367,032 | 367,472 | 354,994 | ||||||||||||||
| TOTAL DEPOSITS | |||||||||||||||||
| Quad City Bank and Trust (1) | $ | 1,029,298 | $ | 931,689 | $ | 846,090 | |||||||||||
| Cedar Rapids Bank and Trust | 686,548 | 680,674 | 648,412 | ||||||||||||||
| Rockford Bank and Trust | 278,129 | 272,347 | 242,669 | ||||||||||||||
| TOTAL LOANS & LEASES | |||||||||||||||||
| Quad City Bank and Trust (1) | $ | 950,978 | $ | 887,882 | $ | 790,442 | |||||||||||
| m2 Lease Funds, LLC | 205,214 | 201,119 | 182,413 | ||||||||||||||
| Cedar Rapids Bank and Trust | 628,580 | 616,615 | 589,345 | ||||||||||||||
| Rockford Bank and Trust | 294,266 | 293,526 | 276,077 | ||||||||||||||
| TOTAL LOANS & LEASES / TOTAL ASSETS | |||||||||||||||||
| Quad City Bank and Trust (1) | 70 | % | 66 | % | 62 | % | |||||||||||
| Cedar Rapids Bank and Trust | 71 | % | 71 | % | 69 | % | |||||||||||
| Rockford Bank and Trust | 80 | % | 80 | % | 78 | % | |||||||||||
| ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES | |||||||||||||||||
| Quad City Bank and Trust (1) | 1.31 | % | 1.35 | % | 1.45 | % | |||||||||||
| m2 Lease Funds, LLC | 1.80 | % | 1.87 | % | 1.90 | % | |||||||||||
| Cedar Rapids Bank and Trust | 1.66 | % | 1.61 | % | 1.44 | % | |||||||||||
| Rockford Bank and Trust | 1.51 | % | 1.45 | % | 1.44 | % | |||||||||||
| NET INCOME (4) | |||||||||||||||||
| Quad City Bank and Trust (1) | $ | 3,170 | $ | 4,080 | $ | 2,975 | |||||||||||
| m2 Lease Funds, LLC (2) | 660 | 865 | 651 | ||||||||||||||
| Cedar Rapids Bank and Trust | 3,052 | 3,137 | 2,169 | ||||||||||||||
| Rockford Bank and Trust | 610 | 452 | 465 | ||||||||||||||
| RETURN ON AVERAGE ASSETS | |||||||||||||||||
| Quad City Bank and Trust (1) | 0.95 | % | 1.18 | % | 0.93 | % | |||||||||||
| Cedar Rapids Bank and Trust | 1.39 | % | 1.42 | % | 1.03 | % | |||||||||||
| Rockford Bank and Trust | 0.66 | % | 0.50 | % | 0.54 | % | |||||||||||
| NET INTEREST MARGIN PERCENTAGE (3) | |||||||||||||||||
| Quad City Bank and Trust (1) | 3.60 | % | 3.38 | % | 3.11 | % | |||||||||||
| Cedar Rapids Bank and Trust | 3.75 | % | 3.63 | % | 3.62 | % | |||||||||||
| Rockford Bank and Trust | 3.54 | % | 3.43 | % | 3.44 | % | |||||||||||
| (1 | ) | Quad City Bank and Trust figures include m2 Lease Funds, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Lease Funds, LLC | |||||||||||||||
| is also presented separately for certain (applicable) measurements. | |||||||||||||||||
| (2 | ) | m2 Lease Funds, LLC net income is post-tax, using an estimated effective tax rate of 35%. | |||||||||||||||
| (3 | ) | 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. | |||||||||||||||||
| (4 | ) | Net income for the quarter ending March 31, 2016 included losses on debt extinguishment (pre-tax) totaling $759 thousand and $524 thousand, respectively, | |||||||||||||||
| at Quad City Bank and Trust and Cedar Rapids Bank and Trust. Net income for the quarter ending December 31, 2015 included losses on debt | |||||||||||||||||
| extinguishment (pre-tax) totaling $591 thousand at Rockford Bank and Trust. | |||||||||||||||||
| As of | |||||||||||||
| March 31, | December 31, | March 31, | |||||||||||
| GAAP TO NON-GAAP RECONCILIATIONS | 2016 | 2015 | 2015 | ||||||||||
| (dollars in thousands, except per share data) | |||||||||||||
| TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1) | |||||||||||||
| Stockholders' equity (GAAP) | $ | 235,143 | $ | 225,886 | $ | 150,996 | |||||||
| Less: Intangible assets | 4,645 | 4,694 | 4,844 | ||||||||||
| Tangible common equity (non-GAAP) | $ | 230,498 | $ | 221,192 | $ | 146,152 | |||||||
| Total assets (GAAP) | $ | 2,640,673 | $ | 2,593,198 | $ | 2,491,659 | |||||||
| Less: Intangible assets | 4,645 | 4,694 | 4,844 | ||||||||||
| Tangible assets (non-GAAP) | $ | 2,636,028 | $ | 2,588,504 | $ | 2,486,815 | |||||||
| Tangible common equity to tangible assets ratio (non-GAAP) | 8.74 | % | 8.55 | % | 5.88 | % | |||||||
| For the Quarter ended | |||||||||||||
| March 31, | December 31, | March 31, | |||||||||||
| CORE NET INCOME (2) | 2016 | 2015 | 2015 | ||||||||||
| Net income (loss) (GAAP) | $ | 6,373 | $ | 6,785 | $ | 4,178 | |||||||
| Less nonrecurring items (post-tax) (3): | |||||||||||||
| Income: | |||||||||||||
| Securities gains | $ | 233 | $ | 211 | $ | 274 | |||||||
| Total nonrecurring income (non-GAAP) | $ | 233 | $ | 211 | $ | 274 | |||||||
| Expense: | |||||||||||||
| Losses on debt extinguishment | $ | 54 | $ | 189 | $ | - | |||||||
| Accrual adjustments | - | (487 | ) | - | |||||||||
| Total nonrecurring expense (non-GAAP) | $ | 54 | $ | (298 | ) | $ | - | ||||||
| Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (2) | $ | 6,194 | $ | 6,276 | $ | 3,904 | |||||||
| CORE EARNINGS PER COMMON SHARE (2) | |||||||||||||
| Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (from above) | $ | 6,194 | $ | 6,276 | $ | 3,904 | |||||||
| Weighted average common shares outstanding | 11,793,620 | 11,744,495 | 7,975,910 | ||||||||||
| Weighted average common and common equivalent shares outstanding | 11,953,949 | 11,926,038 | 8,097,444 | ||||||||||
| Core earnings per common share (non-GAAP): | |||||||||||||
| Basic | $ | 0.53 | $ | 0.53 | $ | 0.49 | |||||||
| Diluted | $ | 0.52 | $ | 0.53 | $ | 0.48 | |||||||
| CORE RETURN ON AVERAGE ASSETS (2) | |||||||||||||
| Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (from above) | $ | 6,194 | $ | 6,276 | $ | 3,904 | |||||||
| Average Assets | $ | 2,602,350 | $ | 2,611,276 | $ | 2,506,497 | |||||||
| Core return on average assets (annualized) (non-GAAP) | 0.95 | % | 0.96 | % | 0.62 | % | |||||||
| (1) This ratio is a non-GAAP financial measure. The Company's management believes that this measure is important to many investors in the marketplace | |||||||||||||
| who are interested in changes period-to-period in common equity. | |||||||||||||
| (2) Core net income, core net income attributable to QCR Holdings, Inc. common stockholders, core earnings per common share and core return on average | |||||||||||||
| assets are non-GAAP financial measures. The Company's management believes that these measure are important to investors as they exclude | |||||||||||||
| non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. | |||||||||||||
| (3) Nonrecurring items (post-tax) are calculated using an estimated effective tax rate of 35%. | |||||||||||||