QCR Holdings, Inc. Announces Second Quarter Earnings and Continued COVID-19 Pandemic Response

Nachrichtenquelle: globenewswire
27.07.2020, 22:05  |  109   |   |   

EPS of $0.86 Driven by Record Pre-Provision/Pre-Tax Adjusted Net Income

Second Quarter 2020 Highlights

  • Net income of $13.7 million, or $0.86 per diluted share
  • Adjusted net income (non-GAAP) of $14.0 million, or $0.88 per diluted share
  • Noninterest income of $28.6 million
  • Net interest margin was stable, excluding the impact of excess liquidity
  • Record pre-provision, pre-tax adjusted net income (non-GAAP) of $36.8 million
  • Pre-provision, pre-tax adjusted ROAA (non-GAAP) of 2.54%
  • Provision expense of $19.9 million for the quarter, increasing ALLL by 33 bps to 1.47%
  • Nonperforming assets to total assets of 0.24%, improving 8 basis points from the prior quarter
  • Annualized core loan and lease growth (non-GAAP) of 8.4% for the quarter, excluding SBA Paycheck Protection Program (“PPP”) loans
  • Annualized deposit growth of 17.2% for the quarter
  • PPP loan participation of 1,655 totaling $358 million to both new and existing clients

MOLINE, Ill., July 27, 2020 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced net income of $13.7 million and diluted earnings per share (“EPS”) of $0.86 for the second quarter of 2020, compared to net income of $11.2 million and diluted EPS of $0.70 for the first quarter of 2020.  Pre-provision, pre-tax adjusted net income (non-GAAP) increased $14.0 million in the second quarter, compared to the first quarter led by strong loan growth, net interest income, and record swap fee income.  Provision expense increased $11.5 million in the second quarter, compared to the first quarter.  This increase was due primarily to qualitative factors in response to deteriorating economic prospects as a result of the COVID-19 pandemic.    

The Company reported adjusted net income (non-GAAP) of $14.0 million and adjusted diluted EPS (non-GAAP) of $0.88 for the second quarter of 2020, compared to adjusted net income (non-GAAP) of $12.4 million and adjusted diluted EPS (non-GAAP) of $0.77 for the first quarter of 2020. For the second quarter of 2019, net income and diluted EPS were $13.5 million and $0.85, respectively, and adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $14.1 million and $0.88, respectively.

  For the Quarter Ended  
  June 30, March 31, June 30,    
$ in millions (except per share data)   2020     2020     2019      
Net Income $   13.7   $   11.2   $   13.5      
Diluted EPS $   0.86   $   0.70   $   0.85      
Adjusted Net Income (non-GAAP) $   14.0   $   12.4   $   14.1      
Adjusted Diluted EPS (non-GAAP) $   0.88   $   0.77   $   0.88      
Pre-Provision/Pre-Tax Adjusted Income (non-GAAP) $   36.8   $   22.8   $   19.3      
Pre-Provision/Pre-Tax Adjusted ROAA (non-GAAP)     2.54 %     1.84 %     1.52 %    
 See GAAP to non-GAAP reconciliations            

“We are very pleased with our core operating performance for the second quarter,” commented Larry J. Helling, Chief Executive Officer. “We delivered record pre-provision, pre-tax adjusted net income, driven by strong loan growth, strong fee income, and careful management of noninterest expenses. In addition to successfully funding over $350 million of PPP loans to both new and existing customers, we grew our core loans by over 8% on an annualized basis.  Our core deposit gathering was even stronger during the quarter with the outsized growth in deposits creating significant excess liquidity that led to compression in our net interest margin.”

Additionally, asset quality remains strong and our current credit metrics improved during the quarter. “We reduced nonperforming assets by 21%, through the sale of an OREO property,” Helling said. “While we do not currently see meaningful degradation of specific credits in our portfolio, we chose to be prudent and increased our provision for loan losses during the quarter in order to build reserves against future potential credit issues related to COVID-19.”

“QCRH continues to successfully navigate the challenges presented by the COVID-19 pandemic, including supporting impacted clients through the QCRH Loan Relief Program, enabling clients to defer payments and preserve cash and liquidity. It’s difficult to predict the ultimate impact that this Pandemic will have on our clients. However, we believe our banks are well positioned to deal with the Pandemic,” Helling said. “All of our employees are dedicated to helping our clients weather this storm, and we have seasoned credit teams at all charters experienced in dealing with significant economic downturns.”

Annualized Loan and Lease Growth of 8.4%, excluding PPP loans (non-GAAP)

During the second quarter of 2020, the Company’s total loans and leases increased by $435.6 million to a total of $4.1 billion. Included in this amount was $358.1 million of PPP loans made to both new and existing customers.  Excluding the PPP loans, loan and lease growth during the quarter was 8.4% on an annualized basis (non-GAAP), reflecting healthy demand across all markets.  Core deposits (excluding brokered deposits) increased $338.6 million, or 8.7% on a linked quarter basis.  Brokered deposits declined by $159.3 million as the Company allowed certain higher cost brokered deposits to run off the balance sheet.  Throughout the quarter, deposits grew significantly with average deposit growth of $777.9 million, or 19.7% for the quarter.  The Company’s correspondent banking portfolio contributed to the majority of this outsized growth as our correspondent bank clients grew liquidity with deposit growth significantly outpacing loans.  These outsized liquidity balances temporarily shifted off balance sheet at quarter-end.  The percentage of wholesale funds to total assets was 8.9% as of the second quarter, which was down from 10.1% in the first quarter of 2020 as the Company’s need for wholesale funding declined due to the strong growth in core deposits.  At quarter-end, the percentage of gross loans and leases to total assets was 73.9%, which was up from 70.8% in the first quarter, primarily driven by the increase in PPP loan balances.  

“Despite the uncertainty caused by the COVID-19 pandemic, we delivered solid loan growth for the quarter in addition to the $358 million of PPP loans that we funded,” added Helling. “Loan production improved in both our core commercial lending business and our Specialty Finance Group.  Excluding our PPP loan production, loan and lease growth for the first six months of 2020 has been 5.0% on an annualized basis, and given our current pipeline, we believe that we will be able to achieve organic loan growth of between 3% and 5% for the full year.”  

Net Interest Income of $40.9 million

Net interest income for the second quarter of 2020 totaled $40.9 million, compared to $37.7 million for the first quarter of 2020 and $38.0 million for the second quarter of 2019. The increase was primarily due to growth in average interest earning assets of $791.6 million, or 17.7% on a linked quarter basis, of which $404.9 million of the increase was due to excess cash derived from the aforementioned outsized deposit growth.  Partially offsetting the impact of the higher average balance of interest earning assets, was a lower reported net interest margin, due to the significant excess liquidity.  Acquisition-related net accretion totaled $736 thousand (pre-tax) for the second quarter of 2020, up slightly from the first quarter of 2020 and down from $1.1 million for the second quarter of 2019. Adjusted net interest income (non-GAAP) was $41.9 million for the second quarter of 2020, compared to $38.9 million for the first quarter of 2020 and $38.7 million for the second quarter of 2019.

In the second quarter, NIM was 3.14% and, on a tax-equivalent yield basis (non-GAAP), NIM was 3.27%, a decrease of 26 basis points and 29 basis points from the first quarter of 2020, respectively. Adjusted NIM (non-GAAP), excluding acquisition-related net accretion was 3.21%, down 29 basis points from the first quarter.  The decline in adjusted NIM (non-GAAP) during the quarter was entirely due to the significant excess liquidity carried for the quarter.  Average excess liquidity of $404.9 million with modest negative arbitrage contributed approximately 30 basis points to the NIM dilution.  Excluding the impact of excess liquidity, the Company’s NIM was stable as cost of funds declines offset pricing pressure on earning assets.   

  For the Quarter Ended
  June 30, March 31, June 30,
  2020  2020  2019 
NIM 3.14 % 3.40 % 3.25 %
NIM (TEY)(non-GAAP) 3.27 % 3.56 % 3.40 %
Adjusted NIM (TEY)(non-GAAP) 3.21 % 3.50 % 3.31 %
See GAAP to non-GAAP reconciliations
     

“Our deposit costs decreased significantly during the quarter as we gathered core deposits and reduced our wholesale funding, allowing us to reduce our total cost of interest-bearing funds by 53 basis points.  However, our average loan yields also decreased due to the sharp decline in short-term interest rates, and when combined with the significant excess liquidity that we carried during the quarter, our adjusted NIM was adversely impacted by 29 basis points,” stated Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer. “Excluding the impact of the excess liquidity, adjusted NIM would have been stable from the first quarter.”                                     

Noninterest Income of $28.6 million

Noninterest income for the second quarter of 2020 totaled $28.6 million, compared to $15.2 million for the first quarter of 2020.  The increase was primarily due to $19.9 million in swap fee income, up $13.1 million from the first quarter of 2020.  Wealth management revenue was $3.6 million for the quarter, down from $4.0 million in the first quarter due to a full quarter of lower fair market values of the assets under management.  Noninterest income increased 67.7% when compared to the second quarter of 2019.

“Continued strong production from our Specialty Finance Group and our core banks led to a record $19.9 million in swap fee income during the quarter. Swap fee income totaled $26.7 million for the first six months of 2020, putting us on track to exceed last year’s record amount,” added Mr. Gipple. “Our current expectation is that for the remainder of 2020, this fee income source will be approximately $30 to $32 million for the six month period.”

Noninterest Expenses of $33.1 million

Noninterest expense for the second quarter of 2020 totaled $33.1 million, compared to $31.4 million for the first quarter of 2020.  The linked quarter increase was primarily due to increased salary and benefits expense of $2.8 million with increased bonus and commission expense in the quarter driven by the strong financial results and higher than anticipated swap fee income.  This was partially offset by a $600 thousand decline in disposition costs, a $285 thousand decline in occupancy and equipment costs and a $345 thousand increase in gains and income from the operations of other real estate.  In addition, the first quarter of 2020 included a goodwill impairment charge of $500 thousand.

NPAs at Historical Lows
Building Reserves for COVID-19

Nonperforming assets (“NPAs”) totaled $13.3 million, a decrease of $3.6 million from the first quarter of 2020. The decrease was primarily due to the disposition of other real estate owned. The ratio of NPAs to total assets decreased to 0.24% at June 30, 2020, compared to 0.32% at March 31, 2020, and down from 0.45% at June 30, 2019.

The Company’s provision for loan and lease losses totaled $19.9 million for the second quarter of 2020, up from $8.4 million in the prior quarter. The linked quarter increase in the provision for loan and lease losses was primarily due to increased qualitative factors in response to the COVID-19 pandemic. As of June 30, 2020, the Company’s allowance to total loans and leases was 1.47%, which was up from 1.14% at March 31, 2020, and from 1.05% at June 30, 2019.  Excluding the impact of the $358 million in PPP loans, the allowance for estimated losses on loans and leases to total loans and leases was 1.61% (non-GAAP).

In accordance with GAAP for acquisition accounting, 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 of $5.5 million at June 30, 2020.

 Strong Capital Levels

As of June 30, 2020, the Company’s total risk-based capital ratio was 13.74%, the common equity tier 1 ratio was 10.28%, and the tangible common equity to tangible assets ratio was 8.48% (non-GAAP).  By comparison, these respective ratios were 13.54%, 10.31% and 8.76% as of March 31, 2020.  The decline in the tangible common equity to tangible assets ratio was primarily the result of asset growth associated with the increase in PPP loans during the quarter.  Excluding the impact of the PPP loans, the tangible common equity to tangible assets ratio was 9.03% (non-GAAP).

Focus on Three Strategic Long-Term Initiatives

As part of the Company’s ongoing efforts to grow earnings and drive attractive long-term returns for shareholders, it continues to operate under three key strategic long-term initiatives:

  • Organic loan and lease growth of 9% per year, funded by core deposits;
  • Grow fee-based income by at least 6% per year; and
  • Limit our annual operating expense growth to 5% per year.

It should be noted that these initiatives are long-term targets.  Due to the impact of the COVID-19 pandemic, the Company may not be able to achieve these goals for the full year 2020.
             
Supplemental Presentation and Where to Find It
In addition to this press release, the Company has included a supplemental presentation that provides further information regarding the Company’s loan exposures and deferrals.  Investors, analysts and other interested persons may find this presentation on the Securities and Exchange Commission’s EDGAR filing system at www.sec.gov/edgar.shtml, or on the Company’s website at www.qcrh.com.

Conference Call Details
The Company will host an earnings call/webcast tomorrow, July 28, 2020, 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 replay through August 11, 2020. The replay access information is 877-344-7529 (international 412-317-0088); access code 10145663. 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, and Springfield communities through its wholly-owned subsidiary banks. The banks 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 Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. Quad City Bank & Trust Company engages in commercial leasing through its wholly-owned subsidiary, m2 Lease Funds, LLC, based in Milwaukee, Wisconsin, and also provides correspondent banking services. The Company has 25 locations in Illinois, Iowa, Wisconsin and Missouri. As of June 30, 2020, the Company had approximately $5.6 billion in assets, $4.1 billion in loans and $4.3 billion in deposits. For additional information, please visit the Company’s 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 the 2020 presidential election and 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, widespread disease or pandemics (including the COVID-19 pandemic in the United States), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices (including the new current expected credit loss (CECL) impairment standards, that will change how the Company estimates credit losses when implemented); (iv) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of LIBOR phase-out); (vi) increased competition in the financial services sector and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) 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; (ix) the loss of key executives or employees; (x) changes in consumer spending; and (xi) unexpected outcomes of existing or new litigation involving the Company. 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
tgipple@qcrh.com

Kim K. Garrett
Vice President
Corporate Communications
Investor Relations Manager
(319) 743-7006
kgarret@qcrh.com



 QCR Holdings, Inc.           
 Consolidated Financial Highlights
         
 (Unaudited)
         
                                 
                Held for Sale Held for Sale Held for Sale Held for Sale          
  As of     As of As of As of As of          
  June 30, March 31, December 31, September 30, June 30,     June 30, March 31, December 31, September 30,          
    2020   2020   2019   2019   2019       2020   2020   2019   2019          
                                 
  (dollars in thousands)                      
                                 
CONDENSED BALANCE SHEET                                
                                 
Cash and due from banks $ 88,577 $ 169,827 $ 76,254 $ 91,671 $ 87,919     $ - $ - $ - $ 11,031          
Federal funds sold and interest-bearing deposits   142,900   206,708   157,691   197,263   205,497       -   -   -   2,415          
Securities   748,883   684,571   611,341   555,409   643,803       -   -   -   66,009          
Net loans/leases   4,079,432   3,662,435   3,654,204   3,574,154   3,869,415       -   -   -   362,011          
Intangibles   13,872   14,421   14,970   15,529   16,089       -   -   -   -          
Goodwill   74,248   74,248   74,748   77,748   77,748       -   -   -   -          
Derivatives   225,164   195,973   87,827   104,388   65,922       -   -   -   -          
Other assets   220,920   213,134   220,049   210,673   228,459       10,765   10,758   11,966   24,081          
Assets held for sale   10,765   10,758   11,966   465,547   -       -   -   -   -          
Total assets $ 5,604,761 $ 5,232,075 $ 4,909,050 $ 5,292,382 $ 5,194,852     $ 10,765 $ 10,758 $ 11,966 $ 465,547          
                                 
Total deposits $ 4,349,775 $ 4,170,478 $ 3,911,051 $ 3,802,241 $ 4,322,510     $ - $ - $ - $ 451,546          
Total borrowings   376,250   244,399   278,955   320,457   230,953       -   -   -   16,157          
Derivatives   233,589   203,744   88,436   109,242   69,556       -   -   -   -          
Other liabilities   87,539   71,185   90,254   70,169   67,533       1,588   3,130   5,003   2,827          
Liabilities held for sale   1,588   3,130   5,003   470,530   -       -   -   -   -          
Total stockholders' equity   556,020   539,139   535,351   519,743   504,300       -   -   -   -          
Total liabilities and stockholders' equity $ 5,604,761 $ 5,232,075 $ 4,909,050 $ 5,292,382 $ 5,194,852     $ 1,588 $ 3,130 $ 5,003 $ 470,530          
                                 
ANALYSIS OF LOAN PORTFOLIO                                
Loan/lease mix:                                
Commercial and industrial loans $ 1,850,110 $ 1,484,979 $ 1,507,825 $ 1,469,978 $ 1,548,657                      
Commercial real estate loans   1,869,162   1,783,086   1,736,396   1,687,922   1,837,473                      
Direct financing leases   79,105   83,324   87,869   92,307   101,180                      
Residential real estate loans   241,069   237,742   239,904   245,667   293,479                      
Installment and other consumer loans   99,150   106,728   109,352   106,540   120,947                      
Deferred loan/lease origination costs, net of fees   1,663   8,809   8,859   7,856   8,783                      
Total loans/leases $ 4,140,259 $ 3,704,668 $ 3,690,205 $ 3,610,270 $ 3,910,519                      
Less allowance for estimated losses on loans/leases   60,827   42,233   36,001   36,116   41,104                      
Net loans/leases $ 4,079,432 $ 3,662,435 $ 3,654,204 $ 3,574,154 $ 3,869,415                      
                                 
ANALYSIS OF SECURITIES PORTFOLIO                                
Securities mix:                                
U.S. government sponsored agency securities $ 17,472 $ 19,457 $ 20,078 $ 21,268 $ 35,762                      
Municipal securities   526,192   493,664   447,853   391,329   440,853                      
Residential mortgage-backed and related securities   145,672   122,853   120,587   123,880   159,228                      
Asset backed securities   39,797   28,499   16,887   10,957   -                      
Other securities   19,750   20,098   5,936   7,975   7,960                      
Total securities $ 748,883 $ 684,571 $ 611,341 $ 555,409 $ 643,803                      
                                 
ANALYSIS OF DEPOSITS                                
Deposit mix:                                
Noninterest-bearing demand deposits $ 1,177,482 $ 829,782 $ 777,224 $ 782,232 $ 795,951                      
Interest-bearing demand deposits   2,488,755   2,440,907   2,407,502   2,245,557   2,505,956                      
Time deposits   560,982   617,979   571,343   536,352   733,135                      
Brokered deposits   122,556   281,810   154,982   238,100   287,468                      
Total deposits $ 4,349,775 $ 4,170,478 $ 3,911,051 $ 3,802,241 $ 4,322,510                      
                                 
ANALYSIS OF BORROWINGS                                
Borrowings mix:                                
Term FHLB advances $ 90,000 $ 55,000 $ 50,000 $ 60,000 $ 46,433                      
Overnight FHLB advances (1)   55,000   40,000   109,300   135,800   59,300                      
FRB borrowings   100,000   30,000   -   -   -                      
Other short-term borrowings   24,818   13,067   13,423   18,526   19,191                      
Subordinated notes   68,516   68,455   68,394   68,334   68,274                      
Junior subordinated debentures   37,916   37,877   37,838   37,797   37,755                      
Total borrowings $ 376,250 $ 244,399 $ 278,955 $ 320,457 $ 230,953                      
                                 
(1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 0.37%.                          
                                 



 QCR Holdings, Inc.             
 Consolidated Financial Highlights           
 (Unaudited)
         
                         
      For the Quarter Ended          
      June 30, March 31, December 31, September 30, June 30,          
        2020     2020   2019   2019     2019            
                         
      (dollars in thousands, except per share data)          
                         
INCOME STATEMENT                      
Interest income   $ 48,650   $ 48,982 $ 52,977 $ 56,817   $ 54,181            
Interest expense     7,702     11,284   13,058   16,098     16,168            
Net interest income     40,948     37,698   39,919   40,719     38,013            
Provision for loan/lease losses     19,915     8,367   979   2,012     1,941            
Net interest income after provision for loan/lease losses   $ 21,033   $ 29,331 $ 38,940 $ 38,707   $ 36,072            
                         
                         
Trust department fees   $ 2,227   $ 2,312 $ 2,365 $ 2,340   $ 2,361            
Investment advisory and management fees     1,399     1,727   1,589   1,782     1,888            
Deposit service fees     1,286     1,477   1,787   1,813     1,658            
Gain on sales of residential real estate loans     1,196     652   823   890     489            
Gain on sales of government guaranteed portions of loans     -     -   159   519     39            
Swap fee income     19,927     6,804   7,409   9,797     7,891            
Securities gains (losses), net     65     -   26   (3 )   (52 )          
Earnings on bank-owned life insurance     612     329   533   489     412            
Debit card fees     775     758   766   886     914            
Correspondent banking fees     198     215   194   189     172            
Gain on sale of assets and liabilities of subsidiary     -     -   12,286   -     -            
Other       941     922   1,868   1,204     1,293            
Total noninterest income   $ 28,626   $ 15,196 $ 29,805 $ 19,906   $ 17,065            
                         
                         
Salaries and employee benefits   $ 21,304   $ 18,519 $ 24,220 $ 24,215   $ 22,749            
Occupancy and equipment expense     3,748     4,032   4,019   3,860     3,533            
Professional and data processing fees     3,646     3,369   3,570   4,030     3,031            
Post-acquisition compensation, transition and integration costs     70     151   1,855   884     708            
Disposition costs     (83 )   517   3,325   -     -            
FDIC insurance, other insurance and regulatory fees     908     683   523   542     926            
Loan/lease expense     339     228   349   221     312            
Net cost of (income from) and gains/losses on operations of other real estate     (332 )   13   232   2,078     1,182            
Advertising and marketing     552     682   1,670   1,056     1,037            
Bank service charges     501     504   516   502     508            
Losses on debt extinguishment, net     429     147   288   148     -            
Correspondent banking expense     212     216   216   209     206            
Intangibles amortization     548     549   560   560     615            
Goodwill impairment     -     500   3,000   -     -            
Other       1,280     1,305   1,951   1,640     1,753            
Total noninterest expense   $ 33,122   $ 31,415 $ 46,294 $ 39,945   $ 36,560            
                         
Net income before income taxes   $ 16,537   $ 13,112 $ 22,451 $ 18,668   $ 16,577            
Federal and state income tax expense     2,798     1,884   6,560   3,573     3,073            
Net income     $ 13,739   $ 11,228 $ 15,891 $ 15,095   $ 13,504            
                         
Basic EPS     $ 0.87   $ 0.71 $ 1.01 $ 0.96   $ 0.86            
Diluted EPS   $ 0.86   $ 0.70 $ 0.99 $ 0.94   $ 0.85            
                         
                         
Weighted average common shares outstanding     15,747,056     15,796,796   15,772,703   15,739,430     15,714,588            
Weighted average common and common equivalent shares outstanding     15,895,336     16,011,456   16,033,043   15,976,742     15,938,377            
                         



 QCR Holdings, Inc. 
 Consolidated Financial Highlights
 (Unaudited)
             
        For the Six Months Ended
        June 30,   June 30,
          2020       2019  
             
        (dollars in thousands, except per share data)
             
INCOME STATEMENT          
Interest income     $ 97,632     $ 106,283  
Interest expense       18,986       31,362  
Net interest income       78,646       74,921  
Provision for loan/lease losses       28,282       4,075  
Net interest income after provision for loan/lease losses     $ 50,364     $ 70,846  
             
             
Trust department fees       4,539     $ 4,854  
Investment advisory and management fees       3,126       3,624  
Deposit service fees       2,763       3,212  
Gain on sales of residential real estate loans       1,848       858  
Gain on sales of government guaranteed portions of loans       -       70  
Swap fee income       26,731       11,089  
Securities losses, net       65       (52 )
Earnings on bank-owned life insurance       941       952  
Debit card fees       1,533       1,706  
Correspondent banking fees       413       388  
Other         1,863       2,357  
Total noninterest income     $ 43,822     $ 29,058  
             
             
Salaries and employee benefits       39,823     $ 43,628  
Occupancy and equipment expense       7,780       7,227  
Professional and data processing fees       7,015       5,781  
Post-acquisition compensation, transition and integration costs     221       842  
Disposition costs       434       -  
FDIC insurance, other insurance and regulatory fees       1,591       1,890  
Loan/lease expense       567       526  
Net cost of operation of other real estate       (319 )     1,480  
Advertising and marketing       1,234       1,822  
Bank service charges       1,005       991  
Losses on debt extinguishment, net       576       -  
Correspondent banking expense       428       410  
Intangibles amortization       1,097       1,147  
Goodwill impairment       500       -  
Other         2,585       3,251  
Total noninterest expense     $ 64,537     $ 68,995  
             
Net income before taxes     $ 29,649     $ 30,909  
Income tax expense       4,682       4,487  
Net income       $ 24,967     $ 26,422  
             
Basic EPS       $ 1.58     $ 1.68  
Diluted EPS     $ 1.56     $ 1.66  
             
Weighted average common shares outstanding       15,771,926       15,703,967  
Weighted average common and common equivalent shares outstanding     15,956,958       15,930,659  
             



QCR Holdings, Inc.            
Consolidated Financial Highlights            
(Unaudited)            
                             
  As of and for the Quarter Ended   For the Six Months Ended            
  June30, March 31, December 31, September 30, June 30,   June 30, June 30,            
    2020     2020     2019     2019     2019       2020     2019              
                             
  (dollars in thousands, except per share data)            
                             
COMMON SHARE DATA                            
Common shares outstanding   15,790,611     15,773,736     15,828,098     15,790,462     15,772,939                    
Book value per common share (1) $ 35.21   $ 34.18   $ 33.82   $ 32.91   $ 31.97                    
Tangible book value per common share (2) $ 29.63   $ 28.56   $ 28.15   $ 27.01   $ 26.02                    
Closing stock price $ 31.18   $ 27.07   $ 43.86   $ 37.98   $ 34.87                    
Market capitalization $ 492,351   $ 426,995   $ 694,220   $ 599,722   $ 550,002                    
Market price / book value   88.55 %   79.20 %   129.69 %   115.40 %   109.06 %                  
Market price / tangible book value   105.23 %   94.79 %   155.76 %   140.61 %   134.00 %                  
Earnings per common share (basic) LTM (3) $ 3.55   $ 3.54   $ 3.65   $ 3.49   $ 3.10                    
Price earnings ratio LTM (3) 8.78 x 7.65 x 12.02 x 10.88 x 11.25 x                  
TCE / TA (4)   8.48 %   8.76 %   9.25 %   8.20 %   8.05 %                  
                             
                             
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY                    
Beginning balance $ 539,139   $ 535,351   $ 519,743   $ 504,300   $ 488,407                    
Net income   13,739     11,228     15,891     15,095     13,504                    
Other comprehensive income (loss), net of tax   3,622     (3,691 )   (683 )   543     2,243                    
Common stock cash dividends declared   (945 )   (942 )   (947 )   (944 )   (942 )                  
Proceeds from issuance of 9,400 shares of common stock as a result of the performance based targets met for Bates Companies   -     -     399     -     -                    
Repurchase and cancellation of 100,932 shares of common stock as a result of a share repurchase program   -     (3,780 )                        
Other (5)   465     973     948     749     1,088                    
Ending balance $ 556,020   $ 539,139   $ 535,351   $ 519,743   $ 504,300                    
                             
                             
REGULATORY CAPITAL RATIOS (6):                            
Total risk-based capital ratio   13.74 %   13.54 %   13.33 %   12.22 %   12.04 %                  
Tier 1 risk-based capital ratio   11.11 %   11.16 %   11.04 %   9.94 %   9.76 %                  
Tier 1 leverage capital ratio   8.91 %   10.19 %   9.53 %   9.02 %   8.96 %                  
Common equity tier 1 ratio   10.28 %   10.31 %   10.18 %   9.12 %   8.93 %                  
                             
                             
KEY PERFORMANCE RATIOS AND OTHER METRICS                            
Return on average assets (annualized)   0.95 %   0.91 %   1.23 %   1.16 %   1.06 %     0.93 %   1.05 %            
Return on average total equity (annualized)   10.29 %   8.23 %   11.93 %   11.70 %   10.84 %     9.30 %   10.78 %            
Net interest margin   3.14 %   3.40 %   3.36 %   3.37 %   3.25 %     3.26 %   3.25 %            
Net interest margin (TEY) (Non-GAAP)(7)   3.27 %   3.56 %   3.51 %   3.52 %   3.40 %     3.40 %   3.40 %            
Efficiency ratio (Non-GAAP) (8)   47.61 %   59.39 %   66.40 %   65.89 %   66.38 %     52.70 %   66.35 %            
Gross loans and leases / total assets (10)   74.01 %   70.95 %   75.36 %   74.80 %   75.28 %     74.01 %   75.28 %            
Gross loans and leases / total deposits (10)   95.18 %   88.83 %   94.35 %   94.95 %   90.47 %     95.18 %   90.47 %            
Effective tax rate   16.92 %   14.37 %   29.22 %   19.14 %   18.54 %     15.79 %   14.52 %            
Full-time equivalent employees (9)   712     703     697     766     773       712     773              
                             
                             
AVERAGE BALANCES                            
Assets $ 5,800,164   $ 4,948,311   $ 5,147,754   $ 5,217,763   $ 5,077,900     $ 5,374,224   $ 5,023,201              
Loans/leases   3,999,523     3,686,410     3,868,435     3,962,464     3,839,674       3,842,967     3,799,645              
Deposits   4,732,626     3,954,707     4,227,572     4,302,995     4,271,391       4,343,653     4,191,130              
Total stockholders' equity   534,095     545,678     532,756     516,195     498,263       536,775     490,343              
                             
(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) Decrease from June 30, 2019 and September 30, 2019 due to sale of subsidiary Rockford Bank & Trust.             
(10) Excludes assets held for sale as of September 30, 2019, Deccember 31, 2019, March 31, 2020 and June 30, 2020.             
                             



QCR Holdings, Inc.          
Consolidated Financial Highlights          
(Unaudited)          
                                   
ANALYSIS OF NET INTEREST INCOME AND MARGIN (4)                              
                                   
    For the Quarter Ended          
    June 30, 2020   March 31, 2020   June 30, 2019          
    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   $ 865 $ 1 0.46 %   $ 5,324 $ 18 1.36 %   $ 9,690 $ 56 2.32 %          
Interest-bearing deposits at financial institutions   533,483   135 0.10 %     128,612   361 1.13 %     182,651   1,168 2.56 %          
Securities (1)     697,559   6,536 3.77 %     619,307   6,080 3.95 %     644,999   6,062 3.77 %          
Restricted investment securities   21,234   288 5.46 %     21,365   258 4.86 %     21,007   290 5.54 %          
Loans (1)     3,999,522   43,417 4.37 %     3,686,410   44,056 4.81 %     3,839,674   48,413 5.06 %          
Total earning assets (1) $ 5,252,663 $ 50,377 3.86 %   $ 4,461,018 $ 50,773 4.58 %   $ 4,698,021 $ 55,989 4.78 %          
                                   
Interest-bearing deposits $ 2,840,860 $ 2,429 0.34 %   $ 2,379,635 $ 5,328 0.90 %   $ 2,461,768 $ 8,271 1.35 %          
Time deposits     809,233   3,337 1.66 %     785,135   3,879 1.99 %     1,013,391   5,554 2.20 %          
Short-term borrowings   25,064   22 0.35 %     19,315   64 1.33 %     16,145   81 2.01 %          
Federal Home Loan Bank advances   95,616   347 1.46 %     111,407   449 1.62 %     76,154   601 3.17 %          
Other borrowings     -   - 0.00 %     -   - 0.00 %     10,550   92 3.50 %          
Subordinated debentures   68,480   994 5.84 %     68,418   994 5.84 %     68,239   993 5.84 %          
Junior subordinated debentures   37,891   572 6.07 %     37,853   571 6.07 %     37,731   576 6.12 %          
Total interest-bearing liabilities $ 3,877,144 $ 7,701 0.80 %   $ 3,401,763 $ 11,285 1.33 %   $ 3,683,978 $ 16,168 1.76 %          
                                   
Net interest income / spread (1)   $ 42,676 3.06 %     $ 39,488 3.24 %     $ 39,821 3.02 %          
Net interest margin (2)     3.14 %       3.40 %       3.25 %          
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.27 %       3.56 %       3.40 %          
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)   3.21 %       3.50 %       3.31 %          
                                   
                                   
                                   
    For the Six Months Ended                  
    June 30, 2020   June 30, 2019              
    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   $ 3,095 $ 18 1.17 %   $ 12,713 $ 150 2.38 %                  
Interest-bearing deposits at financial institutions   331,048   495 0.30 %     169,057   2,091 2.49 %                  
Securities (1)     658,433   12,616 3.85 %     652,727   12,158 3.76 %                  
Restricted investment securities   21,300   546 5.15 %     21,146   598 5.70 %                  
Loans (1)     3,842,966   87,474 4.58 %     3,799,645   94,795 5.03 %                  
Total earning assets (1) $ 4,856,842 $ 101,149 4.19 %   $ 4,655,288 $ 109,792 4.76 %                  
                                   
Interest-bearing deposits $ 2,610,248 $ 7,756 0.60 %   $ 2,374,939 $ 15,445 1.31 %                  
Time deposits     797,184   7,216 1.82 %     1,012,925   10,859 2.16 %                  
Short-term borrowings   22,190   86 0.78 %     15,261   152 2.01 %                  
Federal Home Loan Bank advances   103,512   796 1.55 %     111,755   1,662 3.00 %                  
Other borrowings     -   - 0.00 %     27,126   539 4.01 %                  
Subordinated debentures   68,449   1,988 5.84 %     53,438   1,557 5.88 %                  
Junior subordinated debentures   37,872   1,144 6.07 %     37,709   1,148 6.14 %                  
Total interest-bearing liabilities $ 3,639,455 $ 18,986 1.05 %   $ 3,633,153 $ 31,362 1.74 %                  
                                   
Net interest income / spread (1)   $ 82,163 3.14 %     $ 78,430 3.02 %                  
Net interest margin (2)     3.26 %       3.25 %                  
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.40 %       3.40 %                  
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)   3.35 %       3.30 %                  
                                   
(1) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% tax rate.            
(2) See "Select Financial Data - Subsidiaries" for a breakdown of amortization/accretion included in net interest margin for each period presented.             
(3) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.             
                                   



QCR Holdings, Inc.              
Consolidated Financial Highlights              
(Unaudited)              
                         
  As of              
  June 30, March 31, December 31, September 30, June 30,            
    2020     2020     2019     2019     2019              
                         
  (dollars in thousands, except per share data)              
                         
ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES                        
Beginning balance $ 42,233   $ 36,001   $ 36,116   $ 41,104   $ 41,164                
Reclassification of allowance related to held for sale loans   -     -     -     (6,122 )   -                
Provision charged to expense (2)   19,915     8,367     979     1,584     1,941                
Loans/leases charged off   (1,450 )   (2,335 )   (1,182 )   (741 )   (2,152 )              
Recoveries on loans/leases previously charged off   129     200     88     291     151                
Ending balance $ 60,827   $ 42,233   $ 36,001   $ 36,116   $ 41,104                
                         
                         
NONPERFORMING ASSETS                        
Nonaccrual loans/leases $ 12,099   $ 11,628   $ 7,902   $ 8,231   $ 13,148                
Accruing loans/leases past due 90 days or more   99     1,419     33     -     58                
Troubled debt restructures - accruing   920     545     979     763     1,313                
Total nonperforming loans/leases   13,118     13,592     8,914     8,994     14,519                
Other real estate owned   157     3,298     4,129     4,248     8,637                
Other repossessed assets   25     45     41     -     -                
Total nonperforming assets $ 13,300   $ 16,935   $ 13,084   $ 13,242   $ 23,156                
                         
                         
ASSET QUALITY RATIOS                        
Nonperforming assets / total assets (3)   0.24 %   0.32 %   0.27 %   0.27 %   0.45 %              
Allowance / total loans/leases (1)   1.47 %   1.14 %   0.98 %   1.00 %   1.05 %              
Allowance / nonperforming loans/leases (1)   463.69 %   310.72 %   403.87 %   401.56 %   283.10 %              
Net charge-offs as a % of average loans/leases   0.03 %   0.06 %   0.03 %   0.01 %   0.05 %              
                         
(1) Upon acquisition and per GAAP, acquired loans are recorded at market value which eliminates the allowance and impacts these ratios.            
(2) Excludes provision related to loans included in assets held for sale of $428 thousand for the quarter ending September 30, 2019.              
(3) Excludes assets held for sale.                        



QCR Holdings, Inc.  
Consolidated Financial Highlights  
(Unaudited)  
                         
      For the Quarter Ended For the Six Months Ended  
      June 30,   March 31,   June 30,   June 30,   June 30,  
  SELECT FINANCIAL DATA - SUBSIDIARIES     2020       2020       2019       2020       2019    
      (dollars in thousands)  
                         
  TOTAL ASSETS                      
                         
  Quad City Bank and Trust (1)   $ 1,984,245     $ 1,914,785     $ 1,637,115            
  m2 Lease Funds, LLC     241,114       237,198       234,072            
  Cedar Rapids Bank and Trust     2,021,043       1,719,773       1,527,521            
  Community State Bank - Ankeny     903,648       863,903       806,704            
  Springfield First Community Bank     745,474       708,736       671,644            
                         
  TOTAL DEPOSITS                      
                         
  Quad City Bank and Trust (1)   $ 1,707,970     $ 1,678,889     $ 1,434,467            
  Cedar Rapids Bank and Trust     1,351,784       1,247,989       1,283,151            
  Community State Bank - Ankeny     778,499       743,645       705,777            
  Springfield First Community Bank     564,710       524,420       471,340            
                         
  TOTAL LOANS & LEASES                      
                         
  Quad City Bank and Trust (1)   $ 1,485,971     $ 1,338,915     $ 1,273,400            
  m2 Lease Funds, LLC     239,351       235,144       230,676            
  Cedar Rapids Bank and Trust     1,380,672       1,159,453       1,100,823            
  Community State Bank - Ankeny     671,772       634,253       597,486            
  Springfield First Community Bank     601,843       572,046       515,566            
                         
  TOTAL LOANS & LEASES / TOTAL DEPOSITS                      
                         
  Quad City Bank and Trust (1)     87 %     80 %     89 %          
  Cedar Rapids Bank and Trust     102 %     93 %     86 %          
  Community State Bank - Ankeny     86 %     85 %     85 %          
  Springfield First Community Bank     107 %     109 %     109 %          
                         
                         
  TOTAL LOANS & LEASES / TOTAL ASSETS                      
                         
  Quad City Bank and Trust (1)     75 %     70 %     78 %          
  Cedar Rapids Bank and Trust     68 %     67 %     72 %          
  Community State Bank - Ankeny     74 %     73 %     74 %          
  Springfield First Community Bank     81 %     81 %     77 %          
                         
  ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES                      
                         
  Quad City Bank and Trust (1)     1.51 %     1.17 %     1.06 %          
  m2 Lease Funds, LLC     1.99 %     1.50 %     1.38 %          
  Cedar Rapids Bank and Trust (2)     1.62 %     1.35 %     1.19 %          
  Community State Bank - Ankeny (2)     1.56 %     1.21 %     1.09 %          
  Springfield First Community Bank (2)     0.94 %     0.56 %     0.37 %          
                         
  RETURN ON AVERAGE ASSETS                      
                         
  Quad City Bank and Trust (1)     0.68 %     1.33 %     1.22 %     0.95 %     1.20 %  
  Cedar Rapids Bank and Trust     2.36 %     1.60 %     1.95 %     2.01 %     1.75 %  
  Community State Bank - Ankeny     0.25 %     0.50 %     1.17 %     0.37 %     1.12 %  
  Springfield First Community Bank     1.04 %     1.29 %     1.37 %     1.16 %     1.24 %  
                         
  NET INTEREST MARGIN PERCENTAGE (3)                      
                         
  Quad City Bank and Trust (1)     2.88 %     3.68 %     3.29 %     3.22 %     3.26 %  
  Cedar Rapids Bank and Trust (5)     3.37 %     3.43 %     3.41 %     3.40 %     3.41 %  
  Community State Bank - Ankeny (4)     3.77 %     3.91 %     4.08 %     3.84 %     4.06 %  
  Springfield First Community Bank (6)     3.88 %     3.83 %     4.10 %     3.85 %     4.08 %  
                         
  ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET                  
  INTEREST MARGIN, NET                      
                         
  Cedar Rapids Bank and Trust   $ 62     $ 49     $ 71     $ 111     $ 215    
  Community State Bank - Ankeny     72       64       76     $ 136       134    
  Springfield First Community Bank     641       552       971     $ 1,193       1,881    
  QCR Holdings, Inc. (7)     (39 )     (40 )     (42 )   $ (79 )     (85 )  
                         
(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 ) Upon acquisition and per GAAP, acquired loans are recorded at market value, which eliminates the allowance and impacts this ratio.          
(3 ) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using      
  a 21% tax rate.                      
(4 ) Community State Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest      
  margin would have been 3.71% for the quarter ended June 30, 2020, 3.86% for the quarter ended March 31, 2020 and 4.01% for the          
  quarter ended June 30, 2019.                      
(5 ) Cedar Rapids Bank and Trust's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest  
  margin would have been 3.35% for the quarter ended June 30, 2020, 3.42% for the quarter ended March 31, 2020 and 3.39% for the          
  quarter ended June 30, 2019.                      
(6 ) Springfield First Community Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest  
  margin would have been 4.29% for the quarter ended June 30, 2020, 4.52% for the quarter ended March 31, 2020 and 3.39% for the          
  quarter ended June 30, 2019.                      
(7 ) Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.    
                         
                         



QCR Holdings, Inc.            
Consolidated Financial Highlights            
(Unaudited)            
                                   
    As of            
    June 30,   March 31,   December 31,   September 30,   June 30,              
GAAP TO NON-GAAP RECONCILIATIONS     2020       2020       2019       2019       2019                
    (dollars in thousands, except per share data)            
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)                                  
                                   
Stockholders' equity (GAAP)   $ 556,020     $ 539,139     $ 535,351     $ 519,743     $ 504,300                
Less: Intangible assets     88,120       88,669       89,717       93,277       93,837                
Tangible common equity (non-GAAP)   $ 467,900     $ 450,470     $ 445,634     $ 426,466     $ 410,463                
                                   
Total assets (GAAP)   $ 5,604,761     $ 5,232,075     $ 4,909,050     $ 5,292,382     $ 5,194,852                
Less: Intangible assets     88,120       88,669       89,717       93,277       93,837                
Tangible assets (non-GAAP)   $ 5,516,641     $ 5,143,406     $ 4,819,333     $ 5,199,105     $ 5,101,015                
                                   
Tangible common equity to tangible assets ratio (non-GAAP)     8.48 %     8.76 %     9.25 %     8.20 %     8.05 %              
                                   
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO EXCLUDING PPP LOANS (1)                                  
                                   
  Stockholder's equity (GAAP)   $ 556,020     $ 539,139     $ 535,351     $ 519,743     $ 504,300                
  Less: PPP loan interest income (post-tax) (2)     2,085       -       -       -       -                
  Less: Intangible assets     88,120       88,669       89,717       93,277       93,837                
Tangible common equity, excluding PPP loan income (non-GAAP)   $ 465,815     $ 450,470     $ 445,634     $ 426,466     $ 410,463                
                                   
Total assets (GAAP)   $ 5,604,761     $ 5,232,075     $ 4,909,050     $ 5,292,382     $ 5,194,852                
Less: PPP loans     358,052       -       -       -       -                
  Less: Intangible assets     88,120       88,669       89,717       93,277       93,837                
Tangible assets, excluding PPP loans (non-GAAP)   $ 5,158,589     $ 5,143,406     $ 4,819,333     $ 5,199,105     $ 5,101,015                
                                   
Tangible common equity to tangible assets ratio, excluding PPP loans (non-GAAP)     9.03 %     8.76 %     9.25 %     8.20 %     8.05 %              
                                   
(1) This ratio is a non-GAAP financial measure. The Company's management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders' equity and total assets, which are the most directly comparable GAAP financial measures.          
(2) PPP interest income (post-tax) is calculated using an estimated effective tax rate of 21%.                          
                                   



QCR Holdings, Inc.          
Consolidated Financial Highlights          
(Unaudited)          
                                 
GAAP TO NON-GAAP RECONCILIATIONS   For the Quarter Ended   For the Six Months Ended          
    June 30,   March 31, December 31, September 30, June 30,   June 30,   June 30,          
ADJUSTED NET INCOME (1)     2020       2020     2019     2019     2019       2020       2019            
    (dollars in thousands, except per share data)          
                                 
Net income (GAAP)   $ 13,739     $ 11,228   $ 15,891   $ 15,095   $ 13,504     $ 24,967     $ 26,422            
                                 
Less non-core items (post-tax) (2):                                
Income:                                
 Securities gains(losses), net     51       -     21   $ (2 ) $ (41 )   $ 51     $ (41 )          
 Gain on sale of assets and liabilities of subsidiary     -       -     8,539     -     -       -       -            
Total non-core income (non-GAAP)   $ 51     $ -   $ 8,560   $ (2 ) $ (41 )   $ 51     $ (41 )          
                                 
Expense:                                
 Losses on debt extinguishment, net   $ 339     $ 116   $ 228   $ 117   $ -     $ 455     $ -            
 Goodwill impairment     -       500     3,000     -     -   -   500         -            
 Disposition costs     (66 )     408     2,627     -     -       343     $ -            
 Tax expense on expected liquidation of RB&T BOLI     -       -     790     -     -       -       -            
 Post-acquisition compensation, transition and integration costs     55       119     1,465     698     559       175       665            
Total non-core expense (non-GAAP)   $ 329     $ 1,143   $ 8,110   $ 815   $ 559     $ 1,472     $ 665            
Adjusted net income (non-GAAP) (1)   $ 14,016     $ 12,372   $ 15,441   $ 15,912   $ 14,104     $ 26,388     $ 27,128            
                                 
PRE-PROVISION/PRE-TAX ADJUSTED INCOME (1)                                
Net income (GAAP)   $ 13,739     $ 11,228   $ 15,891   $ 15,095   $ 13,504     $ 24,967     $ 26,422            
Less: Non-core income not tax-effected     65       -     12,313     (3 )   (52 )     65       (52 )          
Plus: Non-core expense not tax-effected     416       1,315     9,258     1,032     708       1,731       842            
  Provision expense     19,915       8,367     979     2,012     1,941       28,282       4,075            
  Federal and state income tax expense     2,798       1,884     6,560     3,573     3,073       4,682       4,487            
Pre-provision/pre-tax adjusted income (non-GAAP) (1)   $ 36,803     $ 22,794   $ 20,375   $ 21,714   $ 19,277     $ 59,597     $ 35,878            
                                 
PRE-PROVISION/PRE-TAX ADJUSTED RETURN ON AVERAGE ASSETS (NON-GAAP)                                
                                 
Pre-provision/pre-tax adjusted income (non-GAAP)   $ 36,803     $ 22,794   $ 20,375   $ 21,714   $ 19,277     $ 59,597       $ 35,878            
                                 
Average Assets   $ 5,800,164     $ 4,948,311   $ 5,147,754   $ 5,217,763   $ 5,077,900     $ 5,374,224     $ 5,023,201            
                                 
Pre-provision/pre-tax adjusted return on average assets (non-GAAP)     2.54 %     1.84 %   1.58 %   1.66 %   1.52 %     2.22 %     1.43 %          
                                 
ADJUSTED EARNINGS PER COMMON SHARE (1)                                
                                 
Adjusted net income (non-GAAP) (from above)   $ 14,016     $ 12,372   $ 15,441   $ 15,912   $ 14,104     $ 26,388     $ 27,128            
                                 
Weighted average common shares outstanding     15,747,056       15,796,796     15,772,703     15,739,430     15,714,588       15,771,926       15,703,967            
Weighted average common and common equivalent shares outstanding     15,895,336       16,011,456     16,033,043     15,976,742     15,938,377       15,956,958       15,930,659            
                                 
Adjusted earnings per common share (non-GAAP):                                
Basic   $ 0.89     $ 0.78   $ 0.98   $ 1.01   $ 0.90     $ 1.67     $ 1.73            
Diluted   $ 0.88     $ 0.77   $ 0.96   $ 1.00   $ 0.88     $ 1.65     $ 1.70            
                                 
ADJUSTED RETURN ON AVERAGE ASSETS (1)                                
                                 
Adjusted net income (non-GAAP) (from above)   $ 14,016     $ 12,372   $ 15,441   $ 15,912   $ 14,104     $ 26,388     $ 27,128            
                                 
Average Assets   $ 5,800,164     $ 4,948,311   $ 5,147,754   $ 5,217,763   $ 5,077,900     $ 5,374,224     $ 5,023,201            
                                 
Adjusted return on average assets (annualized) (non-GAAP)     0.97 %     1.00 %   1.20 %   1.22 %   1.11 %     0.98 %     1.08 %          
                                 
NET INTEREST MARGIN (TEY) (4)                                
                                 
Net interest income (GAAP)   $ 40,948     $ 37,698   $ 39,919   $ 40,719   $ 38,013     $ 78,646     $ 74,921            
                                 
Plus: Tax equivalent adjustment (3)     1,728       1,790     1,783     1,763     1,808       3,517       3,509            
                                 
Net interest income - tax equivalent (Non-GAAP)   $ 42,676     $ 39,488   $ 41,702   $ 42,482   $ 39,821     $ 82,163     $ 78,430            
                                 
Less: Acquisition accounting net accretion     736       625     931     1,268     1,076       1,361       2,145            
                                 
Adjusted net interest income   $ 41,940     $ 38,863   $ 40,771   $ 41,214   $ 38,745     $ 80,802     $ 76,285            
                                 
Average earning assets   $ 5,252,663     $ 4,461,018   $ 4,711,310   $ 4,791,274   $ 4,698,021     $ 4,856,842     $ 4,655,288            
                                 
Net interest margin (GAAP)     3.14 %     3.40 %   3.36 %   3.37 %   3.25 %     3.26 %     3.25 %          
Net interest margin (TEY) (Non-GAAP)     3.27 %     3.56 %   3.51 %   3.52 %   3.40 %     3.40 %     3.40 %          
Adjusted net interest margin (TEY) (Non-GAAP)     3.21 %     3.50 %   3.43 %   3.41 %   3.31 %     3.35 %     3.30 %          
                                 
EFFICIENCY RATIO (5)                                
                                 
Noninterest expense (GAAP)   $ 33,122     $ 31,415   $ 46,294   $ 39,945   $ 36,560     $ 64,537     $ 68,995            
                                 
Net interest income (GAAP)   $ 40,948     $ 37,698   $ 39,919   $ 40,719   $ 38,013     $ 78,646       $ 74,921            
Noninterest income (GAAP)     28,626       15,196     29,805     19,906     17,065       43,822       29,058            
Total income   $ 69,574     $ 52,894   $ 69,724   $ 60,625   $ 55,078     $ 122,468     $ 103,979            
                                 
Efficiency ratio (noninterest expense/total income) (Non-GAAP)     47.61 %     59.39 %   66.40 %   65.89 %   66.38 %     52.70 %     66.35 %          
                                 
ALLOWANCE FOR LOAN AND LEASE LOSSES TO TOTAL LOANS AND LEASES, EXCLUDING PPP LOANS (6)                                
                                 
Allowance for loan and lease losses   $ 60,827     $ 42,233   $ 36,001   $ 36,116   $ 41,104     $ 60,827     $ 41,104            
                                 
Total loans and leases   $ 4,140,259     $ 3,704,668   $ 3,690,205   $ 3,610,270   $ 3,910,519     $ 4,140,259     $ 3,910,519            
Less: PPP loans     358,052       -     -     -     -       358,052       -            
Total loans and leases, excluding PPP loans   $ 3,782,207     $ 3,704,668   $ 3,690,205   $ 3,610,270   $ 3,910,519     $ 3,782,207       $ 3,910,519            
                                 
Allowance for loan and lease losses to total loans and leases, excluding PPP loans     1.61 %     1.14 %   0.98 %   1.00 %   1.05 %     1.61 %     1.05 %          
                                 
                                 
LOAN GROWTH ANNUALIZED, EXCLUDING PPP LOANS                                
Total loans and leases   $ 4,140,259     $ 3,704,668   $ 3,690,205   $ 3,610,270   $ 3,910,519     $ 4,140,259     $ 3,910,519            
Less: PPP loans     358,052       -     -     -     -       358,052       -            
Total loans and leases, excluding PPP loans   $ 3,782,207     $ 3,704,668   $ 3,690,205   $ 3,610,270   $ 3,910,519     $ 3,782,207       $ 3,910,519            
                                 
Loan growth annualized, excluding PPP loans     8.37 %     1.57 %   8.86 %   -30.71 %   13.57 %     4.99 %     9.52 %          
                                 
(1) Adjusted net income, Adjusted net income attributable to QCR Holdings, Inc. common stockholders, Adjusted earnings per common share and Adjusted return on average assets are non-GAAP financial measures. The Company's management believes that these measurements are important to investors as they exclude non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net income, which is the most directly comparable GAAP financial measure.           
(2) Nonrecurring items (post-tax) are calculated using an estimated effective tax rate of 21% with the exception of goodwill impairment which is not deductible for tax and gain on sale of subsidiary which  has an estimated effective tax rate of 30.5%.           
(3) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21%.           
(4) Net interest margin (TEY) is a non-GAAP financial measure. The Company's management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it's difficult to provide a more realistic run-rate for future periods.           
(5) Efficiency ratio is a non-GAAP measure. The Company's management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures.           
(6) Allowance for loan and lease losses to total loans and leases, excluding PPP loans is a non-GAAP measure. The Company's management utilizes this ratio to remove the from the allowance  calculation the impact of PPP loans which are fully guaranteed by the federal government and for which these loans have no allowance for loan and lease loss allocation.           

 

          

 


QCR Holdings Aktie jetzt ab 0€ handeln - auf Smartbroker.de



Diesen Artikel teilen

0 Kommentare

Schreibe Deinen Kommentar

Bitte melden Sie sich an, um zu kommentieren. Anmelden | Registrieren

 

Disclaimer

Meistgelesene Nachrichten des Autors

Titel
Titel
Titel
Titel