News Column

QCR Holdings, Inc. Announces Net Income of $3.8 Million for the Fourth Quarter of 2013 and Net Income of $14.9 Million for the Year

February 3, 2014

MOLINE, Ill. , Feb. 3, 2014 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (Nasdaq:QCRH) today announced net income attributable to QCR Holdings, Inc. ("Net Income") of $3.8 million for the quarter ended December 31, 2013 , or diluted earnings per common share ("EPS") of $0.50 after preferred stock dividends of $736 thousand . By comparison, for the quarter ended September 30, 2013 , the Company reported Net Income of $3.8 million , or diluted EPS of $0.51 after preferred stock dividends of $811 thousand . For the fourth quarter of 2012, the Company reported Net Income of $3.2 million , or diluted EPS of $0.49 after preferred stock dividends of $811 thousand . Successful Sales of Austin, MN and Mason City, IA Branches of Community National Bank Highlight Fourth Quarter On October 4, 2013 , the Company completed its previously announced sale of the two Mason City, Iowa branches of Community National Bank ("CNB") to Clear Lake Bank & Trust Company . The Company sold certain assets and liabilities of the two Mason City branches, including deposits of $55 million and loans of $23 million , for a pre-tax gain on sale of $874 thousand . On October 11, 2013 , the Company completed its previously announced sale of the two Austin, Minnesota branches of CNB to Eastwood Bank . The Company sold certain assets and liabilities of the two Austin branches, including deposits of $36 million and loans of $32 million , for a pre-tax gain on sale of $1.5 million . In total, the Company sold certain assets and liabilities of CNB branches totaling $91 million for a pre-tax gain on sale of $2.3 million . Subsequent to the branch sales, the Company executed a data conversion and merger of CNB and its remaining branches into Cedar Rapids Bank & Trust ("CRBT"). CNB is operating as a division of CRBT under the name of " Community Bank & Trust ." "With the successful execution of the branch sales and a successful data conversion and merger of CNB into CRBT, the acquisition of CNB continued to significantly impact our earnings in the fourth quarter," stated Douglas M. Hultquist , President and Chief Executive Officer. "The pre-tax gain on the branch sales of $2.3 million was offset by $1.2 million of pre-tax acquisition costs which consisted mostly of data conversion costs as well as professional fees and other costs related to the branch sales." Mr. Hultquist added, "Excluding these one-time acquisition related items, our core earnings totaled $3.1 million which is a decline from $3.8 million of the prior quarter. Our core revenue fell quarter-over-quarter with nearly a full quarter of operations occurring after the branch sales. Specifically, net interest income fell quarter-over-quarter by $414 thousand as a result of reduced earning assets related to the branch sales. Additionally, deposit service fees declined $153 thousand quarter-over-quarter. These revenue declines from the branch sales were only minimally offset by cost savings as we finalized the CNB integration and related cost savings throughout the entire fourth quarter. Now that the integration is complete, we fully expect increased operational efficiency for CNB as we move into 2014. Our provision for loan/lease losses ("provision") was elevated in the fourth quarter, an increase of $619 thousand over the prior quarter, as we added specific reserves to several existing nonperforming loans. Our allowance now covers 105% of total nonperforming loans." Company Reports Record Net Income for the Year Propelled by Acquisition-Related Gains For the year ended December 31, 2013 , the Company reported Net Income of $14.9 million , or diluted EPS of $2.08 after preferred stock dividends of $3.2 million . For the same period of 2012, the Company reported Net Income of $12.6 million , or diluted EPS of $1.85 after preferred stock dividends of $3.5 million . Net interest income grew $6.5 million , or 11%, in 2013 with the acquisition of CNB and organic growth in our legacy markets. Provision increased $1.6 million , or 36%, as the Company added specific reserves to several existing nonperforming loans as workouts of those loans continue to progress. Noninterest income jumped $9.2 million , or 55%, propelled by acquisition related gains of $4.1 million (bargain purchase gain of $1.8 million and the gains on branch sales of $2.3 million ), growth in wealth management fee income of $1.5 million , increased gains on sales of government guaranteed portions of loans of $1.1 million , as well as increases across many of the core recurring noninterest income sources as a result of the acquisition of CNB. Noninterest expenses grew $12.2 million , or 23%, in 2013. Acquisition and data conversion costs totaled $2.3 million for the year. The addition of CNB's cost structure contributed to increased costs for more than half of the year. Mr. Hultquist continued, "This past year was the busiest in our Company's history. We are excited to have added Community Bank & Trust to our QCRH Family. Stripping away one-time items, our core earnings for 2013 totaled $13.3 million , which was an increase of $703 thousand , or 6%, over 2012's core earnings of $12.6 million . Elevated levels of noninterest expenses as we worked to get CNB fully integrated diluted some of this core earnings growth. As we have fully integrated CNB, we are confident our operational efficiency will improve in 2014. Further, although we saw increased provision for 2013, we continue to place a strong emphasis on our loan quality." Net Interest Income Grew 11% in 2013 Net interest income grew $6.5 million , or 11%, in 2013. The acquisition of CNB coupled with organic earning asset growth at the Company's legacy charters contributed to the growth. Net interest margin compressed from 3.14% for 2012 down to 3.03% for 2013 as the impact of earning asset growth fell short of the impact of declining yields. For the fourth quarter of 2013, net interest income fell 2% from the third quarter of 2013 as a result of the impact of the branch sales. By comparison, net interest income for the fourth quarter of 2013 grew $2.6 million , or 18%, from the same quarter of 2012. The Company reported net interest margin of 3.04% for the fourth quarter of 2013, which is a decline of 3 basis points from the prior quarter, and a decrease of 1 basis point from the fourth quarter of 2012. "Our management teams are working hard to expand net interest income and margin," stated Todd A. Gipple , Executive Vice President, Chief Operating Officer, and Chief Financial Officer. "The impact of declining yields on our earning assets appears to have slowed. We continue to focus on growing quality loans/leases and core deposits to maximize net interest income and margin while balancing interest rate risk." Total Assets Grew 14% in 2013 During the fourth quarter of 2013, the Company's total assets declined $90.8 million , or 4%, to a total of $2.39 billion . The decline was primarily attributable to the sale of the CNB branches. Excluding the impact of the branch sales, loans/leases declined $24.0 million as payoffs outpaced new loans and the Company successfully worked out of certain nonperforming loans. The Company's liquid assets (cash and federal funds sold) grew $22.1 million , offsetting the decline in loans/leases. Excluding the impact of the branch sales, the Company's liabilities were flat. For the full year of 2013, the Company's total assets grew $301.2 million , or 14%, as a result of the acquisition of CNB and organic growth in the Company's legacy markets. Specifically, excluding the impact of the branch sales, the Company grew loans/leases $225.8 million , or 18%, during 2013. Additionally, the Company grew its securities portfolio $95.0 million , or 16%, during 2013 with most of this growth in tax-exempt municipal securities. The earning asset growth was funded primarily by deposits which grew $363.9 million , or 26%, excluding the impact of the branch sales. Mr. Gipple remarked, "Although we are disappointed in the net decline in loans during the current quarter, we remain fully committed to continuing our trend of the past several years of growing quality loans and leases and funding with core deposits. Our talented commercial bankers continue to focus on our relationship-based banking model. Regarding the growth in our securities portfolio over the year, we continue to increase our investment in tax-exempt municipal securities that are located in the Midwest with strong underwriting conducted before investment. We carefully consider pricing and duration as we continually evaluate this investment strategy." Nonperforming Assets Improve 10% in Fourth Quarter of 2013 Nonperforming assets at December 31, 2013 were $30.6 million , which were down $3.1 million , or 10%, from September 30, 2013 , and up $1.0 million , or 3%, from December 31 , 2012. In addition, the ratio of nonperforming assets-to-total assets was 1.28% at December 31, 2013 , which was down from 1.35% at September 30, 2013 , and down from 1.41% at December 31 , 2012. Generally, the vast majority of the Company's nonperforming assets consist of nonaccrual loans/leases, accruing troubled debt restructurings, and other real estate owned ("OREO"). "Our nonperforming loans fell $4.4 million , or 18%, during the current quarter," stated Mr. Gipple . "Part of this decline was driven by net charge-offs of $2.6 million as we near completion of workouts for several existing nonperforming loans. The remainder was the result of sales or payoffs of certain nonperforming loans. We continue to focus on working out our existing nonperforming loans and assets timely and at minimal loss. Our lending/leasing practices and credit culture remain unchanged and we will continue our strong commitment to improving our overall asset quality." The Company's provision totaled $2.0 million for the fourth quarter of 2013, which was up $619 thousand from the prior quarter, and up $940 thousand from the fourth quarter of 2012. For the year ended December 31, 2013 , the Company's provision totaled $5.9 million which was an increase of $1.6 million , or 36%, from the same period of 2012. With net charge-offs of $2.6 million (18 basis points of average loans/leases for the current quarter) exceeding provision of $2.0 million , the Company's allowance for loan/lease losses ("allowance") declined to $21.4 million at December 31 , 2013. As of December 31, 2013 , the Company's allowance to total loans/leases was 1.47%, which was up from 1.43% at September 30, 2013 , and down from 1.55% at December 31 , 2012. In accordance with generally accepted accounting principles for acquisition accounting, the acquired CNB loans were recorded at market value; therefore, there was no allowance associated with CNB's loans at acquisition. Management continues to evaluate the allowance needed on the acquired CNB loans factoring in the net remaining discount originally established upon acquisition. The Company's allowance to total nonperforming loans/leases was 105% at December 31, 2013 , which was up from 89% at September 30, 2013 and up from 78% at December 31 , 2012. Capital Levels Remain Strong Series E Preferred Stock Converted to Common Stock in the Fourth Quarter As of December 31, 2013 , the Company and its subsidiary banks continued to maintain capital at levels well above the existing minimum requirements administered by the federal regulatory agencies. "With the successful execution of the CNB branch sales in the fourth quarter, the additional excess capital generated will aid in the execution of our long-term capital plan," stated Mr. Gipple . "In particular, we plan to use the excess capital to continue our redemption of our remaining Small Business Lending Fund preferred capital in 2014." Mr. Gipple added, "We were pleased to execute on the conversion of our Series E preferred capital during the fourth quarter of 2013. This was a significant accomplishment and a critical component to our long-term capital plan as it increased our tangible common equity approximately 100 basis points and eliminated annual preferred dividends totaling $1.75 million ." Financial highlights for the Company's primary subsidiaries were as follows: Quad City Bank & Trust , the Company's first subsidiary bank which opened in 1994, had total consolidated assets of $1.25 billion at December 31, 2013 , which was flat from September 30, 2013 , and up $67.8 million from December 31 , 2012. For the fourth quarter of 2013, loans/leases fell $9.3 million , or 1%, while growth in liquid assets (cash and federal funds sold) equally offset the loan/lease decline. Deposits continued to grow in the current quarter ( $24.7 million , or 3%) led by noninterest bearing deposits ( $32.1 million , or 9%). The bank experienced a decline in other borrowings to offset the increase in deposits. For the year, loans/leases grew $7.2 million , or 1%. The bank grew its securities portfolio $49.3 million , or 13% with most of the growth in tax-exempt municipal securities that are located in the Midwest with strong underwriting conducted before investment. The growth was funded from deposits (increase of $118.1 million , or 17%) partially offset by a reduction in FHLB advances ( $8.0 million ) and other borrowings ( $29.3 million ). The bank realized net income of $10.3 million for the full year of 2013, which compares to $10.7 million for the same period of 2012. The decline is primarily the result of increased provision for specific commercial credits. Included in the discussion above and consolidated with Quad City Bank & Trust , m2 Lease Funds, LLC , the Company's leasing subsidiary, grew leases $8.9 million , or 6%, during the fourth quarter of 2013. For the full year of 2013, m2 grew leases $26.1 million , or 24%. Further, m2 realized pre-tax net income of $3.6 million for the full year of 2013, which was up from $3.4 million for the same period of 2012. Cedar Rapids Bank & Trust , which opened in 2001, had total assets of $804.2 million at December 31, 2013 , which was an increase of $153.0 million , or 24%, from September 30, 2013 , and an increase of $178.5 million , or 29%, from December 31 , 2012. On October 26, 2013 , CNB was merged with and into CRBT. CNB's merged branch offices now operate as a division of the bank under the name " Community Bank & Trust ". The majority of the net asset growth was directly attributable to the merger of CNB during the fourth quarter. The bank realized net income of $6.7 million for the full year of 2013, which was an increase of $855 thousand , or 15%, over the same period of 2012. The bank continues to have success in generating strong noninterest income from gains on sales of the government guaranteed portion of SBA and USDA loans. This continues to be a core strategy for the bank and the Company. Rockford Bank & Trust , which opened in 2005, had total assets of $339.4 million at December 31, 2013 , which was an increase of $5.6 million , or 2%, from September 30, 2013 , and an increase of $25.6 million , or 8%, from December 31 , 2012. During the fourth quarter, loans grew $2.3 million , or 1%, and tax-exempt municipal securities grew $1.6 million , or 9%. The majority of these municipal securities are located in the Midwest with strong underwriting conducted before investment. Deposit growth ( $6.7 million , or 3%) partially offset by reduced borrowings funded the net earning asset growth. For the full year of 2013, loans grew $15.5 million , or 7%, and tax-exempt municipal securities grew $18.8 million . This earning asset growth was funded primarily from deposits (grew $14.5 million , or 6%) and low cost, short-term FHLB advances (increased $14.0 million ). The bank realized net income of $1.6 million for the full year of 2013, which was up significantly from $593 thousand for the same period of 2012. The bank experienced strong improvement in asset quality in 2013 which translated over to lower credit costs and drove the improved earnings. QCR Holdings, Inc. , headquartered in Moline, Illinois , is a relationship-driven, multi-bank holding company, which serves the Quad City, Cedar Rapids , 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 asset management services. Quad City Bank & Trust Company also engages in commercial leasing through its wholly owned subsidiary, m2 Lease Funds, LLC , based in Milwaukee , Wisconsin. With the acquisition of Community National Bancorporation on May 13, 2013 , the Company now 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 Basel III, 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, including CNB; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x) unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission . QCR HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) As of December 31 , September 30 , December 31 , 2013 2013 2012 (dollars in thousands, except share data) CONDENSED BALANCE SHEET Amount % Amount % Amount % Cash, federal funds sold, and interest-bearing deposits $ 114,431 5% $ 122,779 5% $ 110,488 5% Securities 697,210 29% 703,699 28% 602,239 29% Net loans/leases 1,438,832 60% 1,517,321 61% 1,267,462 61% Core deposit intangible 1,870 0% 3,311 0% -- 0% Goodwill 3,223 0% 3,223 0% 3,223 0% Other assets 139,387 6% 135,381 6% 110,318 5% Total assets $ 2,394,953 100% $ 2,485,714 100% $ 2,093,730 100% Total deposits $ 1,646,991 68% $ 1,741,832 70% $ 1,374,114 66% Total borrowings 563,381 24% 557,513 22% 547,758 26% Other liabilities 37,004 2% 38,416 2% 31,424 1% Total stockholders' equity 147,577 6% 147,953 6% 140,434 7% Total liabilities and stockholders' equity $ 2,394,953 100% $ 2,485,714 100% $ 2,093,730 100% SELECTED INFORMATION FOR COMMON STOCKHOLDERS' EQUITY Common stockholders' equity * $ 117,778 $ 94,791 $ 87,271 Common shares outstanding ** 7,884,462 5,810,602 4,918,202 Book value per common share * $ 14.94 $ 16.31 $ 17.74 Tangible book value per common share *** $ 14.29 $ 15.19 $ 17.08 Closing stock price $ 17.03 $ 15.89 $ 13.22 Market capitalization $ 134,272 $ 92,330 $ 65,019 Market price / book value 114.00% 97.40% 74.50% Market price / tangible book value 119.17% 104.64% 77.39% Tangible common equity **** / total tangible assets (TCE/TA) 4.71% 3.56% 4.02% TCE/TA excluding accumulated other comprehensive income 5.29% 3.96% 3.80% REGULATORY CAPITAL RATIOS: Total risk-based capital ratio 12.76% ***** 12.25% 12.71% Tier 1 risk-based capital ratio 11.37% ***** 10.84% 11.27% Tier 1 leverage capital ratio 8.09% ***** 7.77% 8.13% For the quarter ended December 31 , For the year ended December 31 , CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY 2013 2012 2013 2012 Beginning balance $ 147,953 $ 139,121 $ 140,434 $ 144,433 Net income 3,816 3,246 14,938 13,106 Other comprehensive income (loss), net of tax (3,605) (1,415) (18,351) (48) Preferred and common cash dividends declared (966) (1,003) (3,627) (3,877) Issuance of 834,715 shares of common stock for acquisition of CNB, net -- -- 13,017 -- Redemption of 10,223 shares of Series F Preferred Stock -- -- -- (10,223) Purchase of noncontrolling interest -- (255) -- (4,782) Other ****** 379 740 1,166 1,825 Ending balance $ 147,577 $ 140,434 $ 147,577 $ 140,434 * Includes accumulated other comprehensive income **Increase is mostly the result of shares issued for conversion of Series E Preferred Stock (2,057,502 shares at $12.15 /share) and acquisition of CNB (834,715 shares) ***Includes accumulated other comprehensive income and excludes intangible assets ****Tangible common equity is defined as total common stockholders' equity excluding equity of noncontrolling interests and excluding goodwill and other intangibles. 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 exclusive of changes in intangible assets. *****Subject to change upon final calculation for regulatory filings due after earnings release ******Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation. QCR HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) As of December 31 , September 30 , December 31 , 2013 2013 2012 (dollars in thousands) ANALYSIS OF LOAN DATA Amount % Amount % Amount % Nonaccrual loans/leases $ 17,878 59% $ 22,126 66% $ 17,932 60% Accruing loans/leases past due 90 days or more 84 0% 61 0% 159 1% Troubled debt restructures - accruing 2,523 8% 2,739 8% 7,300 25% Other real estate owned 9,729 32% 8,496 25% 3,955 13% Other repossessed assets 346 1% 255 1% 212 1% Total nonperforming assets $ 30,560 100% $ 33,677 100% $ 29,558 100% Net charge-offs (calendar year-to-date) $ 4,408 $ 1,808 $ 3,235 Loan/lease mix: Commercial and industrial loans $ 431,688 30% $ 471,257 31% $ 394,244 31% Commercial real estate loans 671,753 46% 714,701 46% 593,979 46% Direct financing leases 128,901 9% 121,268 8% 103,686 8% Residential real estate loans 147,356 10% 150,825 10% 115,582 9% Installment and other consumer loans 76,034 5% 77,226 5% 76,720 6% Deferred loan/lease origination costs, net of fees 4,548 0% 4,106 0% 3,176 0% Total loans/leases $ 1,460,280 100% $ 1,539,383 100% $ 1,287,387 100% Less allowance for estimated losses on loans/leases 21,448 22,062 19,925 Net loans/leases $ 1,438,832 $ 1,517,321 $ 1,267,462 ANALYSIS OF SECURITIES DATA Securities mix: U.S. government sponsored agency securities $ 356,473 51% $ 367,525 55% $ 338,609 57% Municipal securities 180,361 26% 166,771 24% 97,615 16% Residential mortgage-backed and related securities 157,429 23% 166,545 24% 163,601 27% Other securities 2,947 0% 2,858 0% 2,414 0% Total securities $ 697,210 100% $ 703,699 102% $ 602,239 100% ANALYSIS OF DEPOSIT DATA Deposit mix: Noninterest-bearing demand deposits $ 542,566 33% $ 515,365 30% $ 450,660 33% Interest-bearing demand deposits 715,643 43% 780,546 45% 587,201 43% Time deposits 326,852 20% 382,819 22% 290,933 21% Brokered time deposits 61,930 4% 63,103 4% 45,320 3% Total deposits $ 1,646,991 100% $ 1,741,833 100% $ 1,374,114 100% ANALYSIS OF BORROWINGS DATA Borrowings mix: FHLB advances $ 231,350 41% $ 205,350 37% $ 202,350 37% Wholesale structured repurchase agreements 130,000 23% 130,000 23% 130,000 24% Customer repurchase agreements 98,823 18% 124,330 22% 104,943 19% Federal funds purchased 50,470 9% 44,930 8% 66,140 12% Junior subordinated debentures 40,290 7% 40,257 7% 36,085 7% Other 12,448 2% 12,646 2% 8,240 1% Total borrowings $ 563,381 100% $ 557,513 100% $ 547,758 100% QCR HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) For the Quarter Ended For the Year Ended December 31 , September 30 , December 31 , December 31 , December 31 , 2013 2013 2012 2013 2012 (dollars in thousands, except per share data) CONDENSED INCOME STATEMENT Interest income $ 21,199 $ 21,996 $ 18,980 $ 81,872 $ 77,376 Interest expense 4,303 4,686 4,679 17,767 19,727 Net interest income 16,896 17,310 14,301 64,105 57,649 Provision for loan/lease losses 1,986 1,367 1,046 5,930 4,371 Net interest income after provision for loan/lease losses 14,910 15,943 13,255 58,175 53,278 Noninterest income 7,726 5,935 4,480 25,814 16,621 Noninterest expense 18,212 17,027 13,380 64,433 52,259 Net income before taxes 4,424 4,851 4,355 19,556 17,640 Income tax expense 608 1,039 1,109 4,618 4,534 Net income $ 3,816 $ 3,812 $ 3,246 $ 14,938 $ 13,106 Less: Net income attributable to noncontrolling interests -- -- (6) -- 488 Net income attributable to QCR Holdings, Inc. $ 3,816 $ 3,812 $ 3,252 $ 14,938 $ 12,618 Less: Preferred stock dividends 736 811 811 3,168 3,496 Net income attributable to QCR Holdings, Inc. common stockholders $ 3,080 $ 3,001 $ 2,441 $ 11,770 $ 9,122 Earnings per share attributable to QCR Holdings, Inc. : Basic $ 0.51 $ 0.52 $ 0.50 $ 2.13 $ 1.88 Diluted $ 0.50 $ 0.51 $ 0.49 $ 2.08 $ 1.85 Earnings per common share (basic) attributable to QCR Holdings, Inc. LTM * $ 2.13 $ 2.12 $ 1.87 Weighted average common shares outstanding 6,001,120 5,806,019 4,885,470 5,531,948 4,844,776 Weighted average common and common equivalent shares outstanding 6,140,809 5,915,279 4,983,939 5,646,926 4,919,559 AVERAGE BALANCES Assets $ 2,432,900 $ 2,456,167 $ 2,062,188 $ 2,330,604 $ 2,025,691 Loans/leases $ 1,474,257 $ 1,529,771 $ 1,241,522 $ 1,425,364 $ 1,219,623 Deposits $ 1,706,485 $ 1,738,310 $ 1,364,355 $ 1,594,939 $ 1,310,360 Total stockholders' equity $ 149,733 $ 146,038 $ 140,187 $ 145,906 $ 141,793 Common stockholders' equity $ 106,285 $ 93,537 $ 86,615 $ 102,525 $ 84,159 KEY PERFORMANCE RATIOS Return on average assets (annualized) *** 0.63% 0.62% 0.63% 0.64% 0.62% Return on average common equity (annualized) ** 11.59% 12.83% 11.27% 11.48% 10.84% Return on average total equity (annualized) *** 10.19% 10.44% 9.28% 10.24% 8.90% Price earnings ratio LTM * 8.00 x 7.50 x 7.07 x 8.00 x 7.07 x Net interest margin (TEY) 3.04% 3.07% 3.05% 3.03% 3.14% Nonperforming assets / total assets 1.28% 1.35% 1.41% 1.28% 1.41% Net charge-offs / average loans/leases 0.18% 0.03% 0.04% 0.31% 0.27% Allowance / total loans/leases **** 1.47% 1.43% 1.55% 1.47% 1.55% Allowance / nonperforming loans **** 104.70% 88.51% 78.47% 104.70% 78.47% Efficiency ratio 73.97% 73.25% 71.24% 71.66% 70.36% Full-time equivalent employees ***** 400 431 356 400 356 * LTM: Last twelve months ** The numerator for this ratio is "Net income attributable to QCR Holdings, Inc. common stockholders" *** The numerator for this ratio is "Net income attributable to QCR Holdings, Inc. " **** Upon acquisition per GAAP, the loans are recorded at market value which eliminated the allowance and impacts these ratios. ***** CBT had 75 full-time equivalent employees at September 30 , 2013. With branch sales and full implementation of cost savings, CBT full-time equivalents were 41 at December 31 , 2013. QCR HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) ANALYSIS OF NET INTEREST INCOME AND MARGIN For the Quarter Ended December 31, 2013 September 30, 2013 December 31, 2012 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 * $ 720,737 $ 4,398 2.42% $ 717,195 $ 4,043 2.24% $ 603,001 $ 3,495 2.31% Loans * 1,474,257 17,263 4.65% 1,529,771 18,440 4.78% 1,241,522 15,793 5.06% Other 101,676 246 0.96% 80,903 226 1.11% 85,561 222 1.03% Total earning assets * $ 2,296,670 $ 21,907 3.78% $ 2,327,869 $ 22,709 3.87% $ 1,930,084 $ 19,510 4.02% Deposits $ 1,147,913 $ 1,027 0.35% $ 1,212,602 $ 1,394 0.46% $ 904,294 $ 1,385 0.61% Borrowings 531,932 3,276 2.44% 533,138 3,292 2.45% 525,051 3,294 2.50% Total interest-bearing liabilities $ 1,679,845 $ 4,303 1.02% $ 1,745,740 $ 4,686 1.06% $ 1,429,345 $ 4,679 1.30% Net interest income / spread * $ 17,604 2.76% $ 18,023 2.81% $ 14,831 2.72% Net interest margin * 3.04% 3.07% 3.06% For the Year Ended December 31, 2013 December 31, 2012 Average Balance Interest Earned or Paid Average Yield or Cost Average Balance Interest Earned or Paid Average Yield or Cost (dollars in thousands) Securities * $ 700,344 $ 16,140 2.30% $ 603,568 $ 14,268 2.36% Loans * 1,425,364 67,484 4.73% 1,219,623 64,100 5.26% Other 74,570 853 1.14% 73,009 891 1.22% Total earning assets * $ 2,200,278 $ 84,477 3.84% $ 1,896,200 $ 79,259 4.18% Deposits $ 1,076,533 $ 4,715 0.44% $ 898,321 $ 6,219 0.69% Borrowings 552,776 13,052 2.36% 545,080 13,508 2.48% Total interest-bearing liabilities $ 1,629,309 $ 17,767 1.09% $ 1,443,401 $ 19,727 1.37% Net interest income / spread * $ 66,710 2.75% $ 59,532 2.81% Net interest margin * 3.03% 3.14% * Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 34% tax rate for each period presented. QCR HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) For the Quarter Ended For the Year Ended December 31, 2013 September 30, 2013 December 31, 2012 December 31, 2013 December 31, 2012 ANALYSIS OF NONINTEREST INCOME (dollars in thousands) Trust department fees $ 1,392 $ 1,312 $ 982 $ 4,942 $ 3,632 Investment advisory and management fees 641 634 585 2,580 2,361 Deposit service fees 1,076 1,229 859 4,267 3,486 Gain on sales of residential real estate loans 114 185 401 836 1,388 Gain on sales of government guaranteed portions of loans 200 338 91 2,149 1,070 Earnings on cash surrender value of life insurance 458 466 412 1,786 1,609 Credit card fees, net of processing costs (18) 58 190 175 599 Subtotal $ 3,863 $ 4,222 $ 3,520 $ 16,735 $ 14,145 Bargain purchase gain on CNB acquisition -- -- -- 1,841 -- Gains on sales of certain Community National Bank branches 2,334 -- -- 2,334 -- Losses on other real estate owned, net 21 (3) (9) (545) (1,333) Securities gains (1) 417 -- 432 105 Other * 1,509 1,299 969 5,017 3,704 Total noninterest income $ 7,726 $ 5,935 $ 4,480 $ 25,814 $ 16,621 ANALYSIS OF NONINTEREST EXPENSE Salaries and employee benefits $ 9,779 $ 9,803 $ 8,693 $ 37,510 $ 33,275 Occupancy and equipment expense 1,782 1,915 1,458 6,712 5,635 Professional and data processing fees 1,943 1,903 975 6,425 4,318 FDIC and other insurance 691 713 574 2,587 2,331 Loan/lease expense 628 396 287 1,522 1,042 Advertising and marketing 578 406 388 1,727 1,445 Postage and telephone 316 277 244 1,069 960 Stationery and supplies 157 143 123 562 541 Bank service charges 278 307 244 1,145 854 Subtotal $ 16,152 $ 15,863 $ 12,986 $ 59,259 $ 50,401 Acquisition and data conversion costs 1,176 389 -- 2,353 -- Other-than-temporary-impairment losses on securities -- -- -- -- 62 Other 884 775 394 2,821 1,796 Total noninterest expense $ 18,212 $ 17,027 $ 13,380 $ 64,433 $ 52,259 * Following is a detailed breakdown of Other Noninterest Income: Gain on sale of credit card loan portfolio $ -- $ -- $ -- $ 495 $ -- Gain on sale of credit card issuing operations -- -- -- 355 -- Gain on sale of certain nonperforming loans 576 -- -- 576 -- Gain on sale of equity interest -- -- -- -- 580 Debit card fees 240 265 222 992 951 Fees on interest rate swaps on commercial loans 54 44 316 105 616 Miscellaneous 639 990 431 2,494 1,557 TOTAL $ 1,509 $ 1,299 $ 969 $ 5,017 $ 3,704 CONTACT: Todd A. Gipple Executive Vice President Chief Operating Officer Chief Financial Officer (309) 743-7745 Source: QCR Holdings, Inc.


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Source: GlobeNewswire


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