QCR Holdings, Inc. Announces Record Third Quarter Earnings Despite Elevated COVID-19 Provisioning

Nachrichtenquelle: globenewswire
27.10.2020, 21:05  |  130   |   |   

EPS of $1.09 Driven by Record Pre-Provision/Pre-Tax Adjusted Net Income

Third Quarter 2020 Highlights

  • Record net income of $17.3 million, or $1.09 per diluted share
  • Adjusted net income (non-GAAP) of $17.7 million, or $1.11 per diluted share
  • Record noninterest income of $38.0 million, driven by record swap fee income of $26.7 million
  • Record pre-provision, pre-tax adjusted net income (non-GAAP) of $42.2 million
  • Pre-provision, pre-tax adjusted ROAA (non-GAAP) of 2.90%
  • NIM increased by 22 bps and NIM (TEY)(non-GAAP) increased by 24 bps to 3.36% and 3.51%, respectively
  • Annualized core loan and lease growth (non-GAAP) of 11.5% for the quarter, excluding SBA Paycheck Protection Program (“PPP”) loans
  • Provision expense of $20.3 million for the quarter, increasing ALLL to total loans and leases, excluding PPP loans (non-GAAP), by 44 bps to 2.05%
  • Annualized core deposit growth of 36.4% for the quarter
  • Loan Relief Program (“LRP”) participation down approximately 90% from the prior quarter to only 1.95% of total loans and leases

MOLINE, Ill., Oct. 27, 2020 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced record quarterly net income of $17.3 million and diluted earnings per share (“EPS”) of $1.09 for the third quarter of 2020, compared to net income of $13.7 million and diluted EPS of $0.86 for the second quarter of 2020. Pre-provision, pre-tax adjusted net income (non-GAAP) increased $5.4 million in the third quarter compared to the second quarter, led by record swap fee income, strong loan growth and improved net interest income and margin.

The Company reported adjusted net income (non-GAAP) of $17.7 million and adjusted diluted EPS (non-GAAP) of $1.11 for the third quarter of 2020, compared to adjusted net income (non-GAAP) of $14.0 million and adjusted diluted EPS (non-GAAP) of $0.88 for the second quarter of 2020. For the third quarter of 2019, net income and diluted EPS were $15.1 million and $0.94, respectively, and adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $15.9 million and $1.00, respectively.

   
  For the Quarter Ended
  September 30, June 30, September 30,
$ in millions (except per share data)   2020       2020       2019  
Net Income $ 17.3     $ 13.7     $ 15.1  
Diluted EPS $ 1.09     $ 0.86     $ 0.94  
Adjusted Net Income (non-GAAP) $ 17.7     $ 14.0     $ 15.9  
Adjusted Diluted EPS (non-GAAP) $ 1.11     $ 0.88     $ 1.00  
Pre-Provision/Pre-Tax Adjusted Income (non-GAAP) $ 42.2     $ 36.8     $ 21.7  
Pre-Provision/Pre-Tax Adjusted ROAA (non-GAAP)             2.90 %                  2.54 %     1.66 %
See GAAP to non-GAAP reconciliations        
         

“We are pleased to report a record quarter of net income, pre-provision, pre-tax adjusted net income, and noninterest income, driven by continued strong loan growth, record fee income and an expanded net interest margin,” commented Larry J. Helling, Chief Executive Officer. “Core loans grew more than 11% on an annualized basis, while maintaining disciplined underwriting and solid credit quality. Core deposits were even stronger this quarter with outsized growth in deposits coming from our correspondent banking relationships. Despite continuing to hold some excess liquidity on our balance sheet, we were able to lower deposit costs and bolster our net interest margin in the quarter.

“Additionally, we continued to experience a significant reduction in loan deferrals, and by quarter-end, approximately 90% of our clients who needed payment relief early in the pandemic had resumed making payments,” Helling said. “We believe this speaks to the high quality of our loan portfolio and the resiliency of our local markets, which continue to improve as pandemic-impacted jobs return at a faster pace than the rest of the country.

“Our asset quality remains solid and our banks are well positioned to continue to work through the pandemic,” added Helling. “We again chose to be prudent and recorded a significant provision for loan and lease losses during the quarter in order to continue to build reserves against future potential credit issues related to the unknown severity and duration of COVID-19.”

Annualized Loan and Lease Growth of 11.5%, excluding PPP Loans (non-GAAP)

During the third quarter of 2020, the Company’s total loans and leases increased by $107.7 million to a total of $4.2 billion. Loan and lease growth during the quarter was 11.5% on an annualized basis. Core deposits (excluding brokered deposits) increased $385.1 million, or 36.4% on an annualized basis. Brokered deposits declined by $62.6 million as the Company allowed certain higher cost brokered deposits to run off the balance sheet. The Company’s correspondent banking portfolio contributed to the majority of the core deposit growth as our correspondent bank clients grew liquidity. At quarter-end, the percentage of wholesale funds to total assets was 4.9%, which was down sharply from 8.9% in the second quarter of 2020 as the Company’s need for wholesale funding declined due to the strong growth in core deposits. Notably, more than half of the remaining wholesale funds consist of subordinated debt and trust preferred securities that provide regulatory capital. Additionally, at quarter-end, the percentage of gross loans and leases to total assets was 72.4%, which was down from 73.9% in the second quarter.

“We delivered solid loan growth for the quarter, driven primarily by strong production in our Specialty Finance Group,” said Helling. “Excluding our PPP loan production, loan and lease growth for the first nine months of 2020 was 7.2% on an annualized basis, and given our current pipeline, we now believe that we will be able to achieve organic loan growth of between 6% and 8% for the full year, higher than our previous guidance.”   

Net Interest Income of $44.6 million

Net interest income for the third quarter of 2020 totaled $44.6 million, compared to $41.0 million for the second quarter of 2020 and $40.7 million for the third quarter of 2019. The increase was primarily due to an increase in the reported net interest margin and, to a lesser extent, the growth in average interest-earning assets of $25.6 million, or 0.5% on a linked quarter basis. Acquisition-related net accretion totaled $833 thousand (pre-tax) for the third quarter of 2020, up slightly from the second quarter of 2020 and down from $1.3 million for the third quarter of 2019. Adjusted net interest income (non-GAAP) was $45.7 million for the third quarter of 2020, compared to $41.9 million for the second quarter of 2020 and $41.2 million for the third quarter of 2019.

In the third quarter, NIM was 3.36% and, on a tax-equivalent yield basis (non-GAAP), NIM was 3.51%, an increase of 22 basis points and 24 basis points from the second quarter of 2020, respectively. Adjusted NIM (non-GAAP), excluding acquisition-related net accretion was 3.44%, up 23 basis points from the second quarter. The increase in adjusted NIM (non-GAAP) during the quarter was primarily due to a 13 basis point increase in the yield on earning assets combined with a 14 basis point decline in the total cost of interest-bearing funds (due to both mix and rate).

  For the Quarter Ended
  September 30, June 30, September 30,
  2020     2020     2019  
NIM 3.36 %   3.14 %   3.37 %
NIM (TEY)(non-GAAP) 3.51 %   3.27 %   3.52 %
Adjusted NIM (TEY)(non-GAAP) 3.44 %   3.21 %   3.41 %
See GAAP to non-GAAP reconciliations

     

“During the quarter, we worked to improve the efficiency of the balance sheet by proactively reducing higher cost non-core funding which, in turn, eliminated some of our excess liquidity and helped to enhance our NIM,” stated Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer. “Combined with a meaningful drop in our funding costs, which was driven by the increased core deposits and reduced wholesale funding, we were able to increase our adjusted NIM by 23 basis points in the quarter.”  

Record Noninterest Income of $38.0 million

Noninterest income for the third quarter of 2020 totaled $38.0 million, compared to $28.6 million for the second quarter of 2020. The increase was primarily due to $26.7 million in swap fee income, up $6.8 million from the second quarter of 2020. Wealth management revenue was $3.5 million for the quarter, consistent with the second quarter. In addition, securities gains and other income increased by $1.7 million from the prior quarter. Noninterest income increased $18.1 million or 90.7% when compared to the third quarter of 2019.

“Continued strong production from our Specialty Finance Group and our commercial teams across all of our banks led to a record $26.7 million in swap fee income during the quarter. Swap fee income totaled $53.4 million for the first nine months of 2020. This level of sustained production puts us on track to exceed our full year expectations for this source of fee income,” added Mr. Gipple.

Noninterest Expenses of $40.8 million

Noninterest expense for the third quarter of 2020 totaled $40.8 million, compared to $33.1 million for the second quarter of 2020. The linked-quarter increase was primarily due to increased salary and benefits expense of $4.7 million, with increased commission and incentive compensation expense in the quarter driven by the strong financial results and higher than anticipated swap fee income. In addition, losses on debt extinguishment increased $1.4 million, FDIC insurance and regulatory fees increased by $393 thousand due to our larger asset base, net cost on operations of other real estate increased by $348 thousand, disposition costs increased by $275 thousand, and advertising and marketing expenses increased by $198 thousand.

Continued to Significantly Build Reserves for COVID-19

Nonperforming assets (“NPAs”) totaled $19.0 million, an increase of $5.7 million from the second quarter of 2020. The increase was primarily due to a few isolated relationships that experienced degradation not directly related to COVID-19. The ratio of NPAs to total assets increased to 0.32% at September 30, 2020, compared to 0.24% at June 30, 2020, and 0.27% at September 30, 2019.

The Company’s provision for loan and lease losses totaled $20.3 million for the third quarter of 2020, up from $19.9 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 September 30, 2020, the Company’s allowance to total loans and leases was 1.87%, which was up from 1.47% at June 30, 2020, and from 1.00% at September 30, 2019. Excluding the impact of the $358 million in PPP loans that are on the Company’s balance sheet, the ALLL to total loans and leases was 2.05% (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 $4.5 million at September 30, 2020.

Strong Capital Levels

As of September 30, 2020, the Company’s total risk-based capital ratio was 14.91%, the common equity tier 1 ratio was 10.43%, and the tangible common equity to tangible assets ratio was 8.42% (non-GAAP). By comparison, these respective ratios were 13.71%, 10.25% and 8.48% as of June 30, 2020. Excluding the impact of the PPP loans, the tangible common equity to tangible assets ratio was 8.89% (non-GAAP).

During the third quarter, the Company successfully completed a private placement of $50.0 million of 5.125% Fixed-to-Floating Rate Subordinated Notes due 2030. This offering enabled us to further build our capital base to support the organic growth of our subsidiary banks and be well positioned for future M&A opportunities.

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.

These initiatives are long-term targets. Due to the impact of the COVID-19 pandemic among other factors, 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, October 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 November 11, 2020. The replay access information is 877-344-7529 (international 412-317-0088); access code 10148155. 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 24 locations in Iowa, Missouri, Wisconsin and Illinois. As of September 30, 2020, the Company had approximately $5.9 billion in assets, $4.2 billion in loans and $4.7 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)
           
  As of
  September 30, June 30, March 31, December 31, September 30,
   2020  2020  2020  2019  2019
           
  (dollars in thousands)
           
CONDENSED BALANCE SHEET          
           
Cash and due from banks $ 68,932 $ 88,577 $ 169,827 $ 76,254 $ 91,671
Federal funds sold and interest-bearing deposits   302,668   142,900   206,708   157,691   197,263
Securities   782,088   748,883   684,571   611,341   555,409
Net loans/leases   4,168,395   4,079,432   3,662,435   3,654,204   3,574,154
Intangibles   11,902   13,872   14,421   14,970   15,529
Goodwill   74,066   74,248   74,248   74,748   77,748
Derivatives   236,381   225,164   195,973   87,827   104,388
Other assets   220,128   220,920   213,134   220,049   210,673
Assets held for sale   -   10,765   10,758   11,966   465,547
Total assets $ 5,864,560 $ 5,604,761 $ 5,232,075 $ 4,909,050 $ 5,292,382
           
Total deposits $ 4,672,268 $ 4,349,775 $ 4,170,478 $ 3,911,051 $ 3,802,241
Total borrowings   226,962   376,250   244,399   278,955   320,457
Derivatives   244,510   233,589   203,744   88,436   109,242
Other liabilities   148,207   87,539   71,185   90,254   70,169
Liabilities held for sale   -   1,588   3,130   5,003   470,530
Total stockholders' equity   572,613   556,020   539,139   535,351   519,743
Total liabilities and stockholders' equity $ 5,864,560 $ 5,604,761 $ 5,232,075 $ 4,909,050 $ 5,292,382
           
ANALYSIS OF LOAN PORTFOLIO          
Loan/lease mix:          
Commercial and industrial loans $ 1,823,049 $ 1,850,110 $ 1,484,979 $ 1,507,825 $ 1,469,978
Commercial real estate loans   1,999,715   1,869,162   1,783,086   1,736,396   1,687,922
Direct financing leases   73,011   79,105   83,324   87,869   92,307
Residential real estate loans   245,032   241,069   237,742   239,904   245,667
Installment and other consumer loans   102,471   99,150   106,728   109,352   106,540
Deferred loan/lease origination costs, net of fees   4,699   1,663   8,809   8,859   7,856
Total loans/leases $ 4,247,977 $ 4,140,259 $ 3,704,668 $ 3,690,205 $ 3,610,270
Less allowance for estimated losses on loans/leases   79,582   60,827   42,233   36,001   36,116
Net loans/leases $ 4,168,395 $ 4,079,432 $ 3,662,435 $ 3,654,204 $ 3,574,154
           
ANALYSIS OF SECURITIES PORTFOLIO          
Securities mix:          
U.S. government sponsored agency securities $ 18,437 $ 17,472 $ 19,457 $ 20,078 $ 21,268
Municipal securities   569,075   526,192   493,664   447,853   391,329
Residential mortgage-backed and related securities   134,147   145,672   122,853   120,587   123,880
Asset backed securities   40,665   39,797   28,499   16,887   10,957
Other securities   19,764   19,750   20,098   5,936   7,975
Total securities $ 782,088 $ 748,883 $ 684,571 $ 611,341 $ 555,409
           
ANALYSIS OF DEPOSITS          
Deposit mix:          
Noninterest-bearing demand deposits $ 1,175,085 $ 1,177,482 $ 829,782 $ 777,224 $ 782,232
Interest-bearing demand deposits   2,938,194   2,488,755   2,440,907   2,407,502   2,245,557
Time deposits   499,021   560,982   617,979   571,343   536,352
Brokered deposits   59,968   122,556   281,810   154,982   238,100
Total deposits $ 4,672,268 $ 4,349,775 $ 4,170,478 $ 3,911,051 $ 3,802,241
           
ANALYSIS OF BORROWINGS          
Borrowings mix:          
Term FHLB advances $ 40,000 $ 90,000 $ 55,000 $ 50,000 $ 60,000
Overnight FHLB advances   -   55,000   40,000   109,300   135,800
FRB borrowings   -   100,000   30,000   -   -
Other short-term borrowings   30,430   24,818   13,067   13,423   18,526
Subordinated notes   118,577   68,516   68,455   68,394   68,334
Junior subordinated debentures   37,955   37,916   37,877   37,838   37,797
Total borrowings $ 226,962 $ 376,250 $ 244,399 $ 278,955 $ 320,457
           

 


QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
               
      For the Quarter Ended
      September 30, June 30, March 31, December 31, September 30,
        2020     2020     2020     2019     2019  
               
      (dollars in thousands, except per share data)
               
INCOME STATEMENT            
Interest income   $ 50,890   $ 48,650   $ 48,982   $ 52,977   $ 56,817  
Interest expense     6,309     7,694     11,276     13,058     16,098  
Net interest income     44,581     40,956     37,706     39,919     40,719  
Provision for loan/lease losses     20,342     19,915     8,367     979     2,012  
Net interest income after provision for loan/lease losses   $ 24,239   $ 21,041   $ 29,339   $ 38,940   $ 38,707  
               
               
Trust department fees   $ 2,280   $ 2,227   $ 2,312   $ 2,365   $ 2,340  
Investment advisory and management fees     1,266     1,399     1,727     1,589     1,782  
Deposit service fees     1,403     1,286     1,477     1,787     1,813  
Gain on sales of residential real estate loans     1,370     1,196     652     823     890  
Gain on sales of government guaranteed portions of loans     -     -     -     159     519  
Swap fee income     26,688     19,927     6,804     7,409     9,797  
Securities gains (losses), net     1,802     65     -     26     (3 )
Earnings on bank-owned life insurance     502     612     329     533     489  
Debit card fees     946     775     758     766     886  
Correspondent banking fees     220     198     215     194     189  
Gain on sale of assets and liabilities of subsidiary     -     -     -     12,286     -  
Other       1,482     941     922     1,868     1,204  
Total noninterest income   $ 37,959   $ 28,626   $ 15,196   $ 29,805   $ 19,906  
               
               
Salaries and employee benefits   $ 25,999   $ 21,304   $ 18,519   $ 24,220   $ 24,215  
Occupancy and equipment expense     3,807     3,748     4,032     4,019     3,860  
Professional and data processing fees     3,758     3,646     3,369     3,570     4,030  
Post-acquisition compensation, transition and integration costs     (32 )   70     151     1,855     884  
Disposition costs     192     (83 )   517     3,325     -  
FDIC insurance, other insurance and regulatory fees     1,301     908     683     523     542  
Loan/lease expense     403     339     228     349     221  
Net cost of (income from) and gains/losses on operations of other real estate     16     (332 )   13     232     2,078  
Advertising and marketing     750     552     682     1,670     1,056  
Bank service charges     488     501     504     516     502  
Losses on liability extinguishment     1,874     429     147     288     148  
Correspondent banking expense     205     212     216     216     209  
Intangibles amortization     531     548     549     560     560  
Goodwill impairment     -     -     500     3,000     -  
Loss on sale of subsidiary     305     -     -     -     -  
Other       1,241     1,288     1,313     1,951     1,640  
Total noninterest expense   $ 40,838   $ 33,130   $ 31,423   $ 46,294   $ 39,945  
               
Net income before income taxes   $ 21,360   $ 16,537   $ 13,112   $ 22,451   $ 18,668  
Federal and state income tax expense     4,016     2,798     1,884     6,560     3,573  
Net income     $ 17,344   $ 13,739   $ 11,228   $ 15,891   $ 15,095  
               
Basic EPS     $ 1.10   $ 0.87   $ 0.71   $ 1.01   $ 0.96  
Diluted EPS   $ 1.09   $ 0.86   $ 0.70   $ 0.99   $ 0.94  
               
               
Weighted average common shares outstanding     15,767,152     15,747,056     15,796,796     15,772,703     15,739,430  
Weighted average common and common equivalent shares outstanding     15,923,578     15,895,336     16,011,456     16,033,043     15,976,742  
               

 

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
         
    For the Nine Months Ended
    September 30,   September 30,
      2020       2019  
         
    (dollars in thousands, except per share data)
         
INCOME STATEMENT        
Interest income   $ 148,522     $ 163,099  
Interest expense     25,279       47,459  
Net interest income     123,243       115,640  
Provision for loan/lease losses     48,624       6,087  
Net interest income after provision for loan/lease losses   $ 74,619     $ 109,553  
         
         
Trust department fees     6,819     $ 7,194  
Investment advisory and management fees     4,392       5,406  
Deposit service fees     4,166       5,025  
Gain on sales of residential real estate loans     3,218       1,748  
Gain on sales of government guaranteed portions of loans     -       589  
Swap fee income     53,419       20,886  
Securities gains (losses), net     1,867       (56 )
Earnings on bank-owned life insurance     1,443       1,441  
Debit card fees     2,479       2,591  
Correspondent banking fees     633       578  
Other     3,345       3,562  
Total noninterest income   $ 81,781     $ 48,964  
         
         
Salaries and employee benefits     65,822     $ 67,843  
Occupancy and equipment expense     11,587       11,087  
Professional and data processing fees     10,773       9,811  
Post-acquisition compensation, transition and integration costs     189       1,727  
Disposition costs     626       -  
FDIC insurance, other insurance and regulatory fees     2,892       2,432  
Loan/lease expense     970       748  
Net cost of (income from) and gains/losses on operation of other real estate   (303 )     3,557  
Advertising and marketing     1,984       2,878  
Bank service charges     1,493       1,494  
Losses on liability extinguishment     2,450       148  
Correspondent banking expense     633       619  
Intangibles amortization     1,628       1,706  
Goodwill impairment     500       -  
Loss on sale of subsidiary     305       -  
Other     3,842       4,891  
Total noninterest expense   $ 105,391     $ 108,941  
         
Net income before taxes   $ 51,009     $ 49,576  
Income tax expense     8,698       8,059  
Net income   $ 42,311     $ 41,517  
         
Basic EPS   $ 2.68     $ 2.64  
Diluted EPS   $ 2.65     $ 2.60  
         
Weighted average common shares outstanding     15,770,335       15,715,788  
Weighted average common and common equivalent shares outstanding     15,945,832       15,946,020  
         


QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
                 
  As of and for the Quarter Ended   For the Nine Months Ended
  September 30, June 30, March 31, December 31, September 30, September 30, September 30,
    2020     2020     2020     2019     2019       2020     2019  
                 
  (dollars in thousands, except per share data)
                 
COMMON SHARE DATA                
Common shares outstanding   15,792,357     15,790,611     15,773,736     15,828,098     15,790,462        
Book value per common share (1) $ 36.26   $ 35.21   $ 34.18   $ 33.82   $ 32.91        
Tangible book value per common share (2) $ 30.82   $ 29.63   $ 28.56   $ 28.15   $ 27.01        
Closing stock price $ 27.41   $ 31.18   $ 27.07   $ 43.86   $ 37.98        
Market capitalization $ 432,869   $ 492,351   $ 426,995   $ 694,220   $ 599,722        
Market price / book value   75.60 %   88.55 %   79.20 %   129.69 %   115.40 %      
Market price / tangible book value   88.95 %   105.23 %   94.79 %   155.76 %   140.61 %      
Earnings per common share (basic) LTM (3) $ 3.69   $ 3.55   $ 3.54   $ 3.65   $ 3.49        
Price earnings ratio LTM (3)   7.43 x     8.78 x     7.65 x     12.02 x     10.88 x        
TCE / TA (4)   8.42 %   8.48 %   8.76 %   9.25 %   8.20 %      
                 
                 
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY        
Beginning balance $ 556,020   $ 539,139   $ 535,351   $ 519,743   $ 504,300        
Net income   17,344     13,739     11,228     15,891     15,095        
Other comprehensive income (loss), net of tax   (614 )   3,622     (3,691 )   (683 )   543        
Common stock cash dividends declared   (945 )   (945 )   (942 )   (947 )   (944 )      
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)   808     465     973     948     749        
Ending balance $ 572,613   $ 556,020   $ 539,139   $ 535,351   $ 519,743        
                 
                 
REGULATORY CAPITAL RATIOS (6):                
Total risk-based capital ratio   14.91 %   13.71 %   13.54 %   13.33 %   12.22 %      
Tier 1 risk-based capital ratio   11.23 %   11.07 %   11.16 %   11.04 %   9.94 %      
Tier 1 leverage capital ratio   9.21 %   8.91 %   10.19 %   9.53 %   9.02 %      
Common equity tier 1 ratio   10.43 %   10.25 %   10.31 %   10.18 %   9.12 %      
                 
                 
KEY PERFORMANCE RATIOS AND OTHER METRICS                
Return on average assets (annualized)   1.19 %   0.95 %   0.91 %   1.23 %   1.16 %     1.02 %   1.09 %
Return on average total equity (annualized)   12.94 %   10.29 %   8.23 %   11.93 %   11.70 %     10.51 %   11.09 %
Net interest margin   3.36 %   3.14 %   3.40 %   3.36 %   3.37 %     3.29 %   3.29 %
Net interest margin (TEY) (Non-GAAP)(7)   3.51 %   3.27 %   3.56 %   3.51 %   3.52 %     3.44 %   3.43 %
Efficiency ratio (Non-GAAP) (8)   49.48 %   47.61 %   59.40 %   66.40 %   65.89 %     51.40 %   66.18 %
Gross loans and leases / total assets (10)   72.43 %   74.01 %   70.95 %   75.36 %   74.80 %     72.43 %   74.80 %
Gross loans and leases / total deposits (10)   90.92 %   95.18 %   88.83 %   94.35 %   94.95 %     90.92 %   94.95 %
Effective tax rate   18.80 %   16.92 %   14.37 %   29.22 %   19.14 %     17.05 %   16.26 %
Full-time equivalent employees (9)   687     712     703     697     766       687     766  
                 
                 
AVERAGE BALANCES                
Assets $ 5,820,555   $ 5,800,164   $ 4,948,311   $ 5,147,754   $ 5,217,763     $ 5,524,087   $ 5,088,055  
Loans/leases   4,185,275     3,999,523     3,686,410     3,868,435     3,962,464       3,957,903     3,853,918  
Deposits   4,726,881     4,732,626     3,954,707     4,227,572     4,302,995       4,472,328     4,228,418  
Total stockholders' equity   536,187     534,095     545,678     532,756     516,195       536,578     498,960  
                 


(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 September 30, 2019 to December 31, 2019 due to sale of subsidiary Rockford Bank & Trust. The decrease from June 30, 2020 to September 30, 2020 due to sale of Bates Companies and interns employed only during the summer.
(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                    
                         
    For the Quarter Ended
    September 30, 2020   June 30, 2020   September 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   $ 2,205 $ 1 0.18 %   $ 865 $ 1 0.46 %   $ 7,234 $ 42 2.30 %
Interest-bearing deposits at financial institutions   321,679   92 0.11 %     533,483   135 0.10 %     172,386   951 2.19 %
Securities (1)     749,425   6,836 3.66 %     697,559   6,536 3.77 %     626,471   6,080 3.85 %
Restricted investment securities   19,714   249 4.94 %     21,234   288 5.46 %     22,719   293 5.12 %
Loans (1)     4,185,275   45,654 4.34 %     3,999,522   43,417 4.37 %     3,962,464   51,214 5.13 %
Total earning assets (1) $ 5,278,298 $ 52,832 3.99 %   $ 5,252,663 $ 50,377 3.86 %   $ 4,791,274 $ 58,580 4.85 %
                         
Interest-bearing deposits $ 2,932,988 $ 2,086 0.28 %   $ 2,840,860 $ 2,429 0.34 %   $ 2,505,383 $ 7,907 1.25 %
Time deposits     638,031   2,399 1.50 %     809,233   3,337 1.66 %     975,736   5,486 2.23 %
Short-term borrowings   26,996   11 0.17 %     25,064   22 0.35 %     17,333   98 2.24 %
Federal Home Loan Bank advances   57,078   211 1.45 %     95,616   347 1.46 %     123,107   1,023 3.30 %
Subordinated debentures   77,783   1,031 5.30 %     68,480   994 5.84 %     68,299   1,003 5.83 %
Junior subordinated debentures   37,936   571 5.89 %     37,891   572 6.07 %     37,774   581 6.10 %
Total interest-bearing liabilities $ 3,770,812 $ 6,309 0.66 %   $ 3,877,144 $ 7,701 0.80 %   $ 3,727,632 $ 16,098 1.71 %
                         
Net interest income / spread (1)   $ 46,523 3.33 %     $ 42,676 3.06 %     $ 42,482 3.14 %
Net interest margin (2)     3.36 %       3.14 %       3.37 %
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.51 %       3.27 %       3.52 %
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)   3.44 %       3.21 %       3.41 %
                         
                         
                         
    For the Nine Months Ended        
    September 30, 2020   September 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   $ 2,795 $ 19 0.89 %   $ 10,887 $ 191 2.35 %        
Interest-bearing deposits at financial institutions   327,902   587 0.24 %     170,167   3,042 2.39 %        
Securities (1)     688,985   19,567 3.78 %     643,975   18,237 3.79 %        
Restricted investment securities   20,767   795 5.03 %     21,670   891 5.50 %        
Loans (1)     3,957,903   133,141 4.49 %     3,853,918   145,682 5.05 %        
Total earning assets (1) $ 4,998,352 $ 154,109 4.12 %   $ 4,700,617 $ 168,043 4.78 %        
                         
Interest-bearing deposits $ 2,718,613 $ 9,920 0.49 %   $ 2,418,420 $ 23,351 1.29 %        
Time deposits     743,746   9,537 1.71 %     1,000,529   16,346 2.18 %        
Short-term borrowings   23,804   81 0.45 %     15,952   275 2.30 %        
Federal Home Loan Bank advances   87,920   1,007 1.50 %     115,539   2,685 3.11 %        
Other borrowings     -   - 0.00 %     18,084   512 3.79 %        
Subordinated debentures   71,582   3,019 5.63 %     58,392   2,561 5.86 %        
Junior subordinated debentures   37,894   1,715 5.95 %     37,730   1,729 6.13 %        
Total interest-bearing liabilities $ 3,683,559 $ 25,279 0.91 %   $ 3,664,646 $ 47,459 1.73 %        
                         
Net interest income / spread (1)   $ 128,830 3.21 %     $ 120,584 3.05 %        
Net interest margin (2)     3.29 %       3.29 %        
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)     3.44 %       3.43 %        
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)   3.38 %       3.33 %        
                         


(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
  September 30, June 30, March 31, December 31, September 30,
    2020     2020     2020     2019     2019  
           
  (dollars in thousands, except per share data)
           
ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES          
Beginning balance $ 60,827   $ 42,233   $ 36,001   $ 36,116   $ 41,104  
Reclassification of allowance related to held for sale loans   -     -     -     -     (6,122 )
Provision charged to expense (1)   20,342     19,915     8,367     979     1,584  
Loans/leases charged off   (1,819 )   (1,450 )   (2,335 )   (1,182 )   (741 )
Recoveries on loans/leases previously charged off   232     129     200     88     291  
Ending balance $ 79,582   $ 60,827   $ 42,233   $ 36,001   $ 36,116  
           
           
NONPERFORMING ASSETS          
Nonaccrual loans/leases $ 17,597   $ 12,099   $ 11,628   $ 7,902   $ 8,231  
Accruing loans/leases past due 90 days or more   86     99     1,419     33     -  
Troubled debt restructures - accruing   1,061     920     545     979     763  
Total nonperforming loans/leases   18,744     13,118     13,592     8,914     8,994  
Other real estate owned   125     157     3,298     4,129     4,248  
Other repossessed assets   110     25     45     41     -  
Total nonperforming assets $ 18,979   $ 13,300   $ 16,935   $ 13,084   $ 13,242  
           
           
ASSET QUALITY RATIOS          
Nonperforming assets / total assets (2)   0.32 %   0.24 %   0.32 %   0.27 %   0.27 %
Allowance / total loans/leases (3)   1.87 %   1.47 %   1.14 %   0.98 %   1.00 %
Allowance / nonperforming loans/leases (3)   424.57 %   463.69 %   310.72 %   403.87 %   401.56 %
Net charge-offs as a % of average loans/leases   0.04 %   0.03 %   0.06 %   0.03 %   0.01 %
           


(1) Excludes provision related to loans included in assets held for sale of $428 thousand for the quarter ending September 30, 2019.
(2) Excludes assets held for sale.
(3) Upon acquisition and per GAAP, acquired loans are recorded at market value which eliminates the allowance and impacts these ratios.
   

 

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
                       
      For the Quarter Ended For the Nine Months Ended
      September 30, June 30,   September 30, September 30, September 30,
  SELECT FINANCIAL DATA - SUBSIDIARIES     2020       2020       2019       2020       2019  
      (dollars in thousands)
                       
  TOTAL ASSETS                    
                       
  Quad City Bank and Trust (1)   $ 2,205,935     $ 1,984,245     $ 1,642,950          
  m2 Lease Funds, LLC     241,452       241,114       232,432          
  Cedar Rapids Bank and Trust     2,012,182       2,021,043       1,592,896          
  Community State Bank - Ankeny     937,017       903,648       801,596          
  Springfield First Community Bank     803,478       745,474       693,897          
                       
  TOTAL DEPOSITS                    
                       
  Quad City Bank and Trust (1)   $ 1,955,360     $ 1,707,970     $ 1,371,721          
  Cedar Rapids Bank and Trust     1,399,267       1,351,784       1,271,828          
  Community State Bank - Ankeny     822,261       778,499       695,980          
  Springfield First Community Bank     592,528       564,710       484,225          
                       
  TOTAL LOANS & LEASES                    
                       
  Quad City Bank and Trust (1)   $ 1,556,798     $ 1,485,971     $ 1,290,195          
  m2 Lease Funds, LLC     241,783       239,351       230,061          
  Cedar Rapids Bank and Trust     1,387,372       1,380,672       1,148,952          
  Community State Bank - Ankeny     683,086       671,773       594,227          
  Springfield First Community Bank     620,721       601,843       526,466          
                       
  TOTAL LOANS & LEASES / TOTAL DEPOSITS                    
                       
  Quad City Bank and Trust (1)     80 %     87 %     94 %        
  Cedar Rapids Bank and Trust     99 %     102 %     90 %        
  Community State Bank - Ankeny     83 %     86 %     85 %        
  Springfield First Community Bank     105 %     107 %     109 %        
                       
                       
  TOTAL LOANS & LEASES / TOTAL ASSETS                    
                       
  Quad City Bank and Trust (1)     71 %     75 %     79 %        
  Cedar Rapids Bank and Trust     69 %     68 %     72 %        
  Community State Bank - Ankeny     73 %     74 %     74 %        
  Springfield First Community Bank     77 %     81 %     76 %        
                       
  ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES                    
                       
  Quad City Bank and Trust (1)     1.86 %     1.51 %     1.07 %        
  m2 Lease Funds, LLC     2.53 %     1.99 %     1.39 %        
  Cedar Rapids Bank and Trust (2)     2.22 %     1.62 %     1.17 %        
  Community State Bank - Ankeny (2)     1.92 %     1.56 %     1.13 %        
  Springfield First Community Bank (2)     1.09 %     0.94 %     0.42 %        
                       
  RETURN ON AVERAGE ASSETS                    
                       
  Quad City Bank and Trust (1)     0.56 %     0.68 %     1.33 %     0.81 %     1.25 %
  Cedar Rapids Bank and Trust     2.66 %     2.36 %     2.04 %     2.25 %     1.85 %
  Community State Bank - Ankeny     0.82 %     0.25 %     1.71 %     0.53 %     1.33 %
  Springfield First Community Bank     1.52 %     1.04 %     1.32 %     1.28 %     1.27 %
                       
  NET INTEREST MARGIN PERCENTAGE (3)                    
                       
  Quad City Bank and Trust (1)     3.07 %     2.88 %     3.49 %     3.17 %     3.34 %
  Cedar Rapids Bank and Trust (5)     3.54 %     3.37 %     3.41 %     3.45 %     3.41 %
  Community State Bank - Ankeny (4)     4.12 %     3.77 %     4.83 %     3.94 %     4.32 %
  Springfield First Community Bank (6)     3.75 %     3.88 %     3.64 %     3.82 %     3.93 %
                       
  ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET                
  INTEREST MARGIN, NET                    
                       
  Cedar Rapids Bank and Trust   $ 217     $ 62     $ 229     $ 327     $ 444  
  Community State Bank - Ankeny     56       72       649       193       783  
  Springfield First Community Bank     598       641       432       1,791       2,313  
  QCR Holdings, Inc. (7)     (38 )     (39 )     (42 )     (117 )     (127 )
                       


(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 4.06% for the quarter ended September 30, 2020, 3.71% for the quarter ended June 30, 2020 and 4.46% for the quarter ended September 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 3.46% for the quarter ended September 30, 2020, 3.35% for the quarter ended June 30, 2020 and 3.34% for the quarter ended September 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 4.02% for the quarter ended September 30, 2020, 4.29% for the quarter ended June 30, 2020 and 3.16% for the quarter ended September 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
    September 30,   June 30,   March 31,   December 31,   September 30,
GAAP TO NON-GAAP RECONCILIATIONS     2020       2020       2020       2019       2019  
    (dollars in thousands, except per share data)
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)                    
                     
Stockholders' equity (GAAP)   $ 572,613     $ 556,020     $ 539,139     $ 535,351     $ 519,743  
Less: Intangible assets     85,968       88,120       88,669       89,717       93,277  
Tangible common equity (non-GAAP)   $ 486,645     $ 467,900     $ 450,470     $ 445,634     $ 426,466  
                     
Total assets (GAAP)   $ 5,864,560     $ 5,604,761     $ 5,232,075     $ 4,909,050     $ 5,292,382  
Less: Intangible assets     85,968       88,120       88,669       89,717       93,277  
Tangible assets (non-GAAP)   $ 5,778,592     $ 5,516,641     $ 5,143,406     $ 4,819,333     $ 5,199,105  
                     
Tangible common equity to tangible assets ratio (non-GAAP)     8.42 %     8.48 %     8.76 %     9.25 %     8.20 %
                     
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO EXCLUDING PPP LOANS (1)                    
                     
Stockholder's equity (GAAP)   $ 572,613     $ 556,020     $ 539,139     $ 535,351     $ 519,743  
Less: PPP loan interest income (post-tax) (2)     4,934       2,085       -       -       -  
Less: Intangible assets     85,968       88,120       88,669       89,717       93,277  
Tangible common equity, excluding PPP loan income (non-GAAP)   $ 481,711     $ 465,815     $ 450,470     $ 445,634     $ 426,466  
                     
Total assets (GAAP)   $ 5,864,560     $ 5,604,761     $ 5,232,075     $ 4,909,050     $ 5,292,382  
Less: PPP loans     357,506       358,052       -       -       -  
Less: Intangible assets     85,968       88,120       88,669       89,717       93,277  
Tangible assets, excluding PPP loans (non-GAAP)   $ 5,421,086     $ 5,158,589     $ 5,143,406     $ 4,819,333     $ 5,199,105  
                     
Tangible common equity to tangible assets ratio, excluding PPP loans (non-GAAP)     8.89 %     9.03 %     8.76 %     9.25 %     8.20 %
                     


(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 Nine Months Ended
    September 30,   June 30, March 31, December 31, September 30,   September 30, September 30,
ADJUSTED NET INCOME (1)     2020       2020       2020       2019       2019       2020       2019  
     
    (dollars in thousands, except per share data)
                     
Net income (GAAP)   $ 17,344     $ 13,739     $ 11,228     $ 15,891     $ 15,095     $ 42,311     $ 41,517  
                     
Less non-core items (post-tax) (2):                    
Income:                    
Securities gains(losses), net     1,424       51       -       21     $ (2 )   $ 1,475     $ (43 )
Gain on sale of assets and liabilities of subsidiary     -       -       -       8,539       -       -       -  
Total non-core income (non-GAAP)   $ 1,424     $ 51     $ -     $ 8,560     $ (2 )   $ 1,475     $ (43 )
                     
Expense:                    
Losses on debt extinguishment, net   $ 1,480     $ 339     $ 116     $ 228     $ 117     $ 1,936     $ 117  
Goodwill impairment     -       -       500       3,000       -       500       -  
Disposition costs     152       (66 )     408       2,627       -       495       -  
Tax expense on expected liquidation of RB&T BOLI     -       -       -       790       -       -       -  
Post-acquisition compensation, transition and integration costs     (25 )     55       119       1,465       698       149       1,363  
Loss on sale of subsidiary     212       -       -       -       -       212       -  
Total non-core expense (non-GAAP)   $ 1,819     $ 329     $ 1,143     $ 8,110     $ 815     $ 3,291     $ 1,480  
Adjusted net income (non-GAAP) (1)   $ 17,739     $ 14,016     $ 12,372     $ 15,441     $ 15,912     $ 44,127     $ 43,040  
                     
PRE-PROVISION/PRE-TAX ADJUSTED INCOME (1)                    
Net income (GAAP)   $ 17,344     $ 13,739     $ 11,228     $ 15,891     $ 15,095     $ 42,311     $ 41,517  
Less: Non-core income not tax-effected     1,802       65       -       12,313       (3 )     1,867       (54 )
Plus: Non-core expense not tax-effected     2,339       416       1,315       9,258       1,032       4,070       1,873  
          Provision expense     20,342       19,915       8,367       979       2,012       48,624       6,087  
         Federal and state income tax expense     4,016       2,798       1,884       6,560       3,573       8,698       8,059  
Pre-provision/pre-tax adjusted income (non-GAAP) (1)   $ 42,239     $ 36,803     $ 22,794     $ 20,375     $ 21,714     $ 101,836     $ 57,591  
                     
PRE-PROVISION/PRE-TAX ADJUSTED RETURN ON AVERAGE ASSETS (NON-GAAP)                    
                     
Pre-provision/pre-tax adjusted income (non-GAAP)   $ 42,239     $ 36,803     $ 22,794     $ 20,375     $ 21,714     $ 101,836     $ 57,591  
                     
Average Assets   $ 5,820,555     $ 5,800,164     $ 4,948,311     $ 5,147,754     $ 5,217,763     $ 5,524,087     $ 5,088,055  
                     
Pre-provision/pre-tax adjusted return on average assets (non-GAAP)     2.90 %     2.54 %     1.84 %     1.58 %     1.66 %     2.46 %     1.51 %
                     
ADJUSTED EARNINGS PER COMMON SHARE (1)                    
                     
Adjusted net income (non-GAAP) (from above)   $ 17,739     $ 14,016     $ 12,372     $ 15,441     $ 15,912     $ 44,127     $ 43,040  
                     
Weighted average common shares outstanding     15,767,152       15,747,056       15,796,796       15,772,703       15,739,430       15,770,335       15,715,788  
Weighted average common and common equivalent shares outstanding     15,923,578       15,895,336       16,011,456       16,033,043       15,976,742       15,945,832       15,946,020  
                     
Adjusted earnings per common share (non-GAAP):                    
Basic   $ 1.13     $ 0.89     $ 0.78     $ 0.98     $ 1.01     $ 2.80     $ 2.74  
Diluted   $ 1.11     $ 0.88     $ 0.77     $ 0.96     $ 1.00     $ 2.77     $ 2.70  
                     
ADJUSTED RETURN ON AVERAGE ASSETS (1)                    
                     
Adjusted net income (non-GAAP) (from above)   $ 17,739     $ 14,016     $ 12,372     $ 15,441     $ 15,912     $ 44,127     $ 43,040  
                     
Average Assets   $ 5,820,555     $ 5,800,164     $ 4,948,311     $ 5,147,754     $ 5,217,763     $ 5,524,087     $ 5,088,055  
                     
Adjusted return on average assets (annualized) (non-GAAP)     1.22 %     0.97 %     1.00 %     1.20 %     1.22 %     1.07 %     1.13 %
                     
NET INTEREST MARGIN (TEY) (4)                    
                     
Net interest income (GAAP)   $ 44,581     $ 40,948     $ 37,698     $ 39,919     $ 40,719     $ 123,243     $ 115,640  
                     
Plus: Tax equivalent adjustment (3)     1,942       1,728       1,790       1,783       1,763       5,587       4,944  
                     
                     
Net interest income - tax equivalent (Non-GAAP)   $ 46,523     $ 42,676     $ 39,488     $ 41,702     $ 42,482     $ 128,830     $ 120,584  
                     
Less: Acquisition accounting net accretion     833       736       625       931       1,268       2,194       3,413  
                     
                     
Adjusted net interest income   $ 45,690     $ 41,940     $ 38,863     $ 40,771     $ 41,214     $ 126,636     $ 117,171  
                     
Average earning assets   $ 5,278,298     $ 5,252,663     $ 4,461,018     $ 4,711,310     $ 4,791,274     $ 4,998,352     $ 4,700,617  
                     
Net interest margin (GAAP)     3.36 %     3.14 %     3.40 %     3.36 %     3.37 %     3.29 %     3.29 %
Net interest margin (TEY) (Non-GAAP)     3.51 %     3.27 %     3.56 %     3.51 %     3.52 %     3.44 %     3.43 %
Adjusted net interest margin (TEY) (Non-GAAP)     3.44 %     3.21 %     3.50 %     3.43 %     3.41 %     3.38 %     3.33 %
                     
EFFICIENCY RATIO (5)                    
                     
Noninterest expense (GAAP)   $ 40,838     $ 33,122     $ 31,415     $ 46,294     $ 39,945     $ 105,391     $ 108,941  
                     
Net interest income (GAAP)   $ 44,581     $ 40,948     $ 37,698     $ 39,919     $ 40,719     $ 123,243     $ 115,640  
Noninterest income (GAAP)     37,959       28,626       15,196       29,805       19,906       81,781       48,964  
Total income   $ 82,540     $ 69,574     $ 52,894     $ 69,724     $ 60,625     $ 205,024     $ 164,604  
                     
Efficiency ratio (noninterest expense/total income) (Non-GAAP)     49.48 %     47.61 %     59.39 %     66.40 %     65.89 %     51.40 %     66.18 %
                     
ALLOWANCE FOR LOAN AND LEASE LOSSES TO TOTAL LOANS AND LEASES, EXCLUDING PPP LOANS (6)                    
                     
Allowance for loan and lease losses   $ 79,582     $ 60,827     $ 42,233     $ 36,001     $ 36,116     $ 79,582     $ 36,116  
                     
Total loans and leases   $ 4,247,977     $ 4,140,259     $ 3,704,668     $ 3,690,205     $ 3,610,270     $ 4,247,977     $ 3,610,270  
Less: PPP loans     357,506       358,052       -       -       -       357,506       -  
Total loans and leases, excluding PPP loans   $ 3,890,471     $ 3,782,207     $ 3,704,668     $ 3,690,205     $ 3,610,270     $ 3,890,471     $ 3,610,270  
                     
Allowance for loan and lease losses to total loans and leases, excluding PPP loans     2.05 %     1.61 %     1.14 %     0.98 %     1.00 %     2.05 %     1.00 %
                     
                     
LOAN GROWTH ANNUALIZED, EXCLUDING PPP LOANS                    
Total loans and leases   $ 4,247,977     $ 4,140,259     $ 3,704,668     $ 3,690,205     $ 3,610,270     $ 4,247,977     $ 3,610,270  
Less: PPP loans     357,506       358,052       -       -       -       357,506       -  
Total loans and leases, excluding PPP loans   $ 3,890,471     $ 3,782,207     $ 3,704,668     $ 3,690,205     $ 3,610,270     $ 3,890,471     $ 3,610,270  
                     
Loan growth annualized, excluding PPP loans     11.45 %     8.37 %     1.57 %     8.86 %     -30.71 %     16.28 %     -9.84 %
                     


(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/loss 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 über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de



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QCR Holdings, Inc. Announces Record Third Quarter Earnings Despite Elevated COVID-19 Provisioning EPS of $1.09 Driven by Record Pre-Provision/Pre-Tax Adjusted Net IncomeThird Quarter 2020 Highlights Record net income of $17.3 million, or $1.09 per diluted shareAdjusted net income (non-GAAP) of $17.7 million, or $1.11 per diluted …

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06.11.20