QCR Holdings, Inc. Announces Net Income of $18.0 Million for the First Quarter of 2021
QCR Holdings, Inc. reported net income of $18.0 million for Q1 2021, equivalent to $1.12 per diluted share. This reflects a slight decrease from the previous quarter's net income of $18.3 million and EPS of $1.14. Total noninterest income reached $23.5 million, while core loan growth was strong at 14.0%, totaling $4.1 billion. The net interest margin improved to 3.26%. The company maintained a low nonperforming asset ratio of 0.25% of total assets, indicating stable asset quality.
- Net income of $18.0 million for Q1 2021.
- Adjusted net income of $18.6 million.
- Strong annualized core loan growth of 14.0%, totaling $4.1 billion.
- Net interest margin increased to 3.26%.
- Stable nonperforming assets at 0.25% of total assets.
- Net income decreased slightly from $18.3 million in Q4 2020.
- Pre-tax adjusted net income fell from $30.4 million in Q4 2020 to $29.0 million in Q1 2021.
- Noninterest income declined from $32.0 million in Q4 2020 to $23.5 million.
First Quarter 2021 Highlights
- Net income of
$18.0 million , or$1.12 per diluted share - Adjusted net income (non-GAAP) of
$18.6 million , or$1.16 per diluted share - NIM increased by 1 basis point and Adjusted NIM (TEY)(non-GAAP) increased by 3 bps to
3.26% and3.40% , respectively - Noninterest income continues to be strong at
$23.5 million - Annualized core loan and lease growth (non-GAAP) of
14.0% for the quarter, excluding SBA Paycheck Protection Program (“PPP”) loans - Annualized core deposit growth of
3.2% for the quarter - Provision for credit losses of
$6.7 million for the quarter and allowance for credit losses (“ACL”) to total loans/leases of1.99% , excluding PPP loans (non-GAAP) - Nonperforming assets remained stable for the quarter and represent
0.25% of total assets
MOLINE, Ill.,, April 27, 2021 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced net income of
The Company reported adjusted net income (non-GAAP) of
For the Quarter Ended | |||||||||
March 31, | December 31, | March 31, | |||||||
$ in millions (except per share data) | 2021 | 2020 | 2020 | ||||||
Net Income | $ | 18.0 | $ | 18.3 | $ | 11.2 | |||
Diluted EPS | $ | 1.12 | $ | 1.14 | $ | 0.70 | |||
Adjusted Net Income (non-GAAP) | $ | 18.6 | $ | 19.1 | $ | 12.4 | |||
Adjusted Diluted EPS (non-GAAP) | $ | 1.16 | $ | 1.20 | $ | 0.77 | |||
Pre-Provision/Pre-Tax Adjusted Income (non-GAAP) | $ | 29.0 | $ | 30.4 | $ | 22.8 | |||
Pre-Provision/Pre-Tax Adjusted ROAA (non-GAAP) | 2.05 | % | 2.08 | % | 1.84 | % |
Adjusted non-GAAP measurements of financial performance exclude non-recurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.
“We are pleased with our financial performance for the first quarter,” said Larry J. Helling, Chief Executive Officer. “We delivered another quarter of strong net income, driven by robust loan growth, expanded net interest margin and carefully managed expenses. Despite a competitive lending environment, we grew core loans by
Annualized Loan and Lease Growth of
During the first quarter of 2021, the Company’s total loans and leases, excluding PPP loans, increased
“Our robust loan growth for the quarter was driven by strength in both our core commercial lending business and in our Specialty Finance Group,” added Helling. “Given the strong first quarter results, combined with our current pipeline, we are now targeting organic loan growth for the full year 2021 of between
Net Interest Income of
Net interest income for the first quarter of 2021 totaled
In the first quarter, reported NIM was
For the Quarter Ended | ||||||
March 31, | December 31, | March 31, | ||||
2021 | 2020 | 2020 | ||||
NIM | 3.26 | % | 3.25 | % | 3.40 | % |
NIM (TEY)(non-GAAP) | 3.43 | % | 3.45 | % | 3.56 | % |
Adjusted NIM (TEY)(non-GAAP) | 3.40 | % | 3.37 | % | 3.50 | % |
See GAAP to non-GAAP reconciliations |
“We expanded our adjusted net interest margin again during the first quarter as our deposit costs were slightly lower due to an improved mix. While our average loan yields also declined during the quarter, we benefited from lower excess liquidity as well, enabling us to grow our margin,” said Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer.
Noninterest Income of
Noninterest income for the first quarter of 2021 totaled
“Swap fee income totaled
Noninterest Expenses of
Noninterest expense for the first quarter of 2021 totaled
Asset Quality Remains Strong and NPAs Remained Stable
Nonperforming assets (“NPAs”) totaled
On January 1, 2021, the Company replaced its "incurred loss" model for recognizing credit losses with an "expected loss" model referred to as the CECL model, as per ASU 2016-13. As a result, there was a “day one” adjustment to our allowance for credit losses on loans/leases, which decreased the allowance by
The Company’s provision for credit losses totaled
Continued Strong Capital Levels
As of March 31, 2021, the Company’s total risk-based capital ratio was
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 2021.
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, April 28, 2021, 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 May 12, 2021. The replay access information is 877-344-7529 (international 412-317-0088); access code 10153920. 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 Equipment Finance, LLC, based in Milwaukee, Wisconsin, and also provides correspondent banking services. The Company has 23 locations in Iowa, Missouri, Wisconsin and Illinois. As of March 31, 2021, the Company had approximately
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 new presidential administration); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics (including the COVID-19 pandemic in the United States), acts of war or other threats thereof, 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 , as may be adopted by state and federal regulatory agencies, the FASB, the Securities Exchange Commission or the PCAOB, including FASB’s CECL impairment standards ; (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; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; and (xiii) the ability of the Company to manage the risks associated with the foregoing as well as anticipated.. 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 | Kim K. Garrett |
President | Vice President |
Chief Operating Officer | Corporate Communications |
Chief Financial Officer | Investor Relations Manager |
(309) 743-7745 | (319) 743-7006 |
tgipple@qcrh.com | kgarret@qcrh.com |
QCR Holdings, Inc. | ||||||||||
Consolidated Financial Highlights | ||||||||||
(Unaudited) | ||||||||||
As of | ||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||
2021 | 2020 | 2020 | 2020 | 2020 | ||||||
(dollars in thousands) | ||||||||||
CONDENSED BALANCE SHEET | ||||||||||
Cash and due from banks | $ | 78,814 | $ | 61,329 | $ | 68,932 | $ | 88,577 | $ | 169,827 |
Federal funds sold and interest-bearing deposits | 55,056 | 95,676 | 302,668 | 142,900 | 206,708 | |||||
Securities, net of allowance for credit losses | 799,825 | 838,131 | 782,088 | 748,883 | 684,571 | |||||
Net loans/leases | 4,279,220 | 4,166,753 | 4,168,395 | 4,079,432 | 3,662,435 | |||||
Intangibles | 10,873 | 11,381 | 11,902 | 13,872 | 14,421 | |||||
Goodwill | 74,066 | 74,066 | 74,066 | 74,248 | 74,248 | |||||
Derivatives | 122,668 | 222,757 | 236,381 | 225,164 | 195,973 | |||||
Other assets | 224,625 | 212,704 | 220,128 | 220,920 | 213,134 | |||||
Assets held for sale | - | - | - | 10,765 | 10,758 | |||||
Total assets | $ | 5,645,147 | $ | 5,682,797 | $ | 5,864,560 | $ | 5,604,761 | $ | 5,232,075 |
Total deposits | $ | 4,631,782 | $ | 4,599,137 | $ | 4,672,268 | $ | 4,349,775 | $ | 4,170,478 |
Total borrowings | 188,601 | 177,114 | 226,962 | 376,250 | 244,399 | |||||
Derivatives | 125,863 | 229,270 | 244,510 | 233,589 | 203,744 | |||||
Other liabilities | 90,182 | 83,483 | 148,207 | 87,539 | 71,185 | |||||
Liabilities held for sale | - | - | - | 1,588 | 3,130 | |||||
Total stockholders' equity | 608,719 | 593,793 | 572,613 | 556,020 | 539,139 | |||||
Total liabilities and stockholders' equity | $ | 5,645,147 | $ | 5,682,797 | $ | 5,864,560 | $ | 5,604,761 | $ | 5,232,075 |
ANALYSIS OF LOAN PORTFOLIO | ||||||||||
Loan/lease mix: (1) | ||||||||||
Commercial and industrial - revolving | $ | 168,842 | ||||||||
Commercial and industrial - other | 1,616,144 | |||||||||
Commercial real estate, owner occupied | 461,272 | |||||||||
Commercial real estate, non-owner occupied | 610,582 | |||||||||
Construction and land development | 607,798 | |||||||||
Multi-family | 396,272 | |||||||||
Direct financing leases | 60,134 | |||||||||
1-4 family real estate | 368,927 | |||||||||
Consumer | 71,080 | |||||||||
Total loans/leases | $ | 4,361,051 | ||||||||
Less allowance for credit losses | 81,831 | |||||||||
Net loans/leases | $ | 4,279,220 | ||||||||
Loan/lease mix: (1) | ||||||||||
Commercial and industrial loans | $ | 1,779,062 | $ | 1,726,723 | $ | 1,823,049 | $ | 1,850,110 | $ | 1,484,979 |
Commercial real estate loans | 2,174,897 | 2,107,629 | 1,999,715 | 1,869,162 | 1,783,086 | |||||
Direct financing leases | 59,229 | 66,016 | 73,011 | 79,105 | 83,324 | |||||
Residential real estate loans | 254,900 | 252,121 | 245,032 | 241,069 | 237,742 | |||||
Installment and other consumer loans | 87,053 | 91,302 | 102,471 | 99,150 | 106,728 | |||||
Deferred loan/lease origination costs, net of fees | 5,910 | 7,338 | 4,699 | 1,663 | 8,809 | |||||
Total loans/leases | $ | 4,361,051 | $ | 4,251,129 | $ | 4,247,977 | $ | 4,140,259 | $ | 3,704,668 |
Less allowance for credit losses (2) | 81,831 | 84,376 | 79,582 | 60,827 | 42,233 | |||||
Net loans/leases | $ | 4,279,220 | $ | 4,166,753 | $ | 4,168,395 | $ | 4,079,432 | $ | 3,662,435 |
ANALYSIS OF SECURITIES PORTFOLIO | ||||||||||
Securities mix: | ||||||||||
U.S. government sponsored agency securities | $ | 14,581 | $ | 15,336 | $ | 18,437 | $ | 17,472 | $ | 19,457 |
Municipal securities | 614,649 | 627,523 | 569,075 | 526,192 | 493,664 | |||||
Residential mortgage-backed and related securities | 118,051 | 132,842 | 134,147 | 145,672 | 122,853 | |||||
Asset backed securities | 39,815 | 40,683 | 40,665 | 39,797 | 28,499 | |||||
Other securities | 12,903 | 21,747 | 19,764 | 19,750 | 20,098 | |||||
Total securities | $ | 799,999 | $ | 838,131 | $ | 782,088 | $ | 748,883 | $ | 684,571 |
Less allowance for credit losses (2) | 174 | - | - | - | - | |||||
Net securities | $ | 799,825 | $ | 838,131 | $ | 782,088 | $ | 748,883 | $ | 684,571 |
ANALYSIS OF DEPOSITS | ||||||||||
Deposit mix: | ||||||||||
Noninterest-bearing demand deposits | $ | 1,269,578 | $ | 1,145,378 | $ | 1,175,085 | $ | 1,177,482 | $ | 829,782 |
Interest-bearing demand deposits | 2,916,054 | 2,987,469 | 2,938,194 | 2,488,755 | 2,440,907 | |||||
Time deposits | 445,067 | 460,659 | 499,021 | 560,982 | 617,979 | |||||
Brokered deposits | 1,084 | 5,631 | 59,968 | 122,556 | 281,810 | |||||
Total deposits | $ | 4,631,782 | $ | 4,599,137 | $ | 4,672,268 | $ | 4,349,775 | $ | 4,170,478 |
ANALYSIS OF BORROWINGS | ||||||||||
Borrowings mix: | ||||||||||
Term FHLB advances | $ | - | $ | - | $ | 40,000 | $ | 90,000 | $ | 55,000 |
Overnight FHLB advances (3) | 25,000 | 15,000 | - | 55,000 | 40,000 | |||||
FRB borrowings | - | - | - | 100,000 | 30,000 | |||||
Other short-term borrowings | 6,840 | 5,430 | 30,430 | 24,818 | 13,067 | |||||
Subordinated notes | 118,731 | 118,691 | 118,577 | 68,516 | 68,455 | |||||
Junior subordinated debentures | 38,030 | 37,993 | 37,955 | 37,916 | 37,877 | |||||
Total borrowings | $ | 188,601 | $ | 177,114 | $ | 226,962 | $ | 376,250 | $ | 244,399 |
(1) The Company adopted ASU 2016-13 "CECL", effective January 1, 2021, which included a change in class of receivable and segment categories. | ||||||||||
(2) The Company adopted ASU 2016-13 "CECL", effective January 1, 2021, which requires an allowance for credit losses ("ACL") on loans/leases, off-balance sheet ("OBS") exposures and held to maturity ("HTM") securities, recorded through the income statement within the provision for credit losses. The Day 1 adjustments to ACL were as follows: | ||||||||||
loans/leases ( | ||||||||||
OBS | ||||||||||
(3) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was | ||||||||||
QCR Holdings, Inc. | |||||||||||||||
Consolidated Financial Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
For the Quarter Ended | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
INCOME STATEMENT | |||||||||||||||
Interest income | $ | 47,565 | $ | 49,851 | $ | 50,890 | $ | 48,650 | $ | 48,982 | |||||
Interest expense | 5,590 | 6,144 | 6,309 | 7,694 | 11,276 | ||||||||||
Net interest income | 41,975 | 43,707 | 44,581 | 40,956 | 37,706 | ||||||||||
Provision for credit losses (1) | 6,713 | 7,080 | 20,342 | 19,915 | 8,367 | ||||||||||
Net interest income after provision for loan/lease losses | $ | 35,262 | $ | 36,627 | $ | 24,239 | $ | 21,041 | $ | 29,339 | |||||
Trust department fees | $ | 2,801 | $ | 2,388 | $ | 2,280 | $ | 2,227 | $ | 2,312 | |||||
Investment advisory and management fees | 940 | 926 | 1,266 | 1,399 | 1,727 | ||||||||||
Deposit service fees | 1,408 | 1,875 | 1,403 | 1,286 | 1,477 | ||||||||||
Gain on sales of residential real estate loans | 1,337 | 1,462 | 1,370 | 1,196 | 652 | ||||||||||
Gain on sales of government guaranteed portions of loans | - | 224 | - | - | - | ||||||||||
Swap fee income | 13,557 | 21,402 | 26,688 | 19,927 | 6,804 | ||||||||||
Securities gains, net | - | 617 | 1,802 | 65 | - | ||||||||||
Earnings on bank-owned life insurance | 471 | 461 | 502 | 612 | 329 | ||||||||||
Debit card fees | 975 | 923 | 946 | 775 | 758 | ||||||||||
Correspondent banking fees | 314 | 270 | 220 | 198 | 215 | ||||||||||
Other | 1,686 | 1,469 | 1,482 | 941 | 922 | ||||||||||
Total noninterest income | $ | 23,489 | $ | 32,017 | $ | 37,959 | $ | 28,626 | $ | 15,196 | |||||
Salaries and employee benefits | $ | 24,847 | $ | 30,446 | $ | 25,999 | $ | 21,304 | $ | 18,519 | |||||
Occupancy and equipment expense | 4,108 | 4,917 | 3,807 | 3,748 | 4,032 | ||||||||||
Professional and data processing fees | 3,443 | 3,871 | 3,758 | 3,646 | 3,369 | ||||||||||
Post-acquisition compensation, transition and integration costs | - | 25 | (32 | ) | 70 | 151 | |||||||||
Disposition costs | 8 | 64 | 192 | (83 | ) | 517 | |||||||||
FDIC insurance, other insurance and regulatory fees | 1,065 | 1,272 | 1,301 | 908 | 683 | ||||||||||
Loan/lease expense | 300 | 465 | 403 | 339 | 228 | ||||||||||
Net cost of (income from) and gains/losses on operations of other real estate | 39 | (4 | ) | 16 | (332 | ) | 13 | ||||||||
Advertising and marketing | 627 | 1,276 | 750 | 552 | 682 | ||||||||||
Bank service charges | 523 | 523 | 488 | 501 | 504 | ||||||||||
Losses on liability extinguishment | - | 1,457 | 1,874 | 429 | 147 | ||||||||||
Correspondent banking expense | 200 | 205 | 205 | 212 | 216 | ||||||||||
Intangibles amortization | 508 | 521 | 531 | 548 | 549 | ||||||||||
Goodwill impairment | - | - | - | - | 500 | ||||||||||
Loss on sale of subsidiary | - | (147 | ) | 305 | - | - | |||||||||
Other | 1,560 | 1,473 | 1,241 | 1,288 | 1,313 | ||||||||||
Total noninterest expense | $ | 37,228 | $ | 46,364 | $ | 40,838 | $ | 33,130 | $ | 31,423 | |||||
Net income before income taxes | $ | 21,523 | $ | 22,280 | $ | 21,360 | $ | 16,537 | $ | 13,112 | |||||
Federal and state income tax expense | 3,541 | 4,009 | 4,016 | 2,798 | 1,884 | ||||||||||
Net income | $ | 17,982 | $ | 18,271 | $ | 17,344 | $ | 13,739 | $ | 11,228 | |||||
Basic EPS | $ | 1.14 | $ | 1.16 | $ | 1.10 | $ | 0.87 | $ | 0.71 | |||||
Diluted EPS | $ | 1.12 | $ | 1.14 | $ | 1.09 | $ | 0.86 | $ | 0.70 | |||||
Weighted average common shares outstanding | 15,803,643 | 15,775,596 | 15,767,152 | 15,747,056 | 15,796,796 | ||||||||||
Weighted average common and common equivalent shares outstanding | 16,025,548 | 15,973,054 | 15,923,578 | 15,895,336 | 16,011,456 | ||||||||||
(1) Includes provision for credit losses for loans/leases totaling | |||||||||||||||
Provision for credit losses only included provision for loans/leases for years prior to 2021. |
QCR Holdings, Inc. | |||||||||||||||
Consolidated Financial Highlights | |||||||||||||||
(Unaudited) | |||||||||||||||
As of and for the Quarter Ended | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
COMMON SHARE DATA | |||||||||||||||
Common shares outstanding | 15,843,732 | 15,805,711 | 15,792,357 | 15,790,611 | 15,773,736 | ||||||||||
Book value per common share (1) | $ | 38.42 | $ | 37.57 | $ | 36.26 | $ | 35.21 | $ | 34.18 | |||||
Tangible book value per common share (Non-GAAP) (2) | $ | 33.06 | $ | 32.16 | $ | 30.82 | $ | 29.63 | $ | 28.56 | |||||
Closing stock price | $ | 47.22 | $ | 39.59 | $ | 27.41 | $ | 31.18 | $ | 27.07 | |||||
Market capitalization | $ | 748,141 | $ | 625,748 | $ | 432,869 | $ | 492,351 | $ | 426,995 | |||||
Market price / book value | 122.90 | % | 105.38 | % | 75.60 | % | 88.55 | % | 79.20 | % | |||||
Market price / tangible book value | 142.83 | % | 123.09 | % | 88.95 | % | 105.23 | % | 94.79 | % | |||||
Earnings per common share (basic) LTM (3) | $ | 4.27 | $ | 3.84 | $ | 3.69 | $ | 3.55 | $ | 3.54 | |||||
Price earnings ratio LTM (3) | 11.06 x | 10.31 x | 7.43 x | 8.78 x | 7.65 x | ||||||||||
TCE / TA (Non-GAAP) (4) | 9.42 | % | 9.08 | % | 8.42 | % | 8.48 | % | 8.76 | % | |||||
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY | |||||||||||||||
Beginning balance | $ | 593,793 | $ | 572,613 | $ | 556,020 | $ | 539,139 | $ | 535,351 | |||||
Cumulative effect from the adoption of ASU 2016-13 "CECL" | (937 | ) | - | - | - | - | |||||||||
Net income | 17,982 | 18,271 | 17,344 | 13,739 | 11,228 | ||||||||||
Other comprehensive income (loss), net of tax | (1,751 | ) | 3,157 | (614 | ) | 3,622 | (3,691 | ) | |||||||
Common stock cash dividends declared | (949 | ) | (947 | ) | (945 | ) | (945 | ) | (942 | ) | |||||
Repurchase and cancellation of 100,932 shares of common stock as a result of a share repurchase program | - | - | - | - | (3,780 | ) | |||||||||
Other (5) | 581 | 699 | 808 | 465 | 973 | ||||||||||
Ending balance | $ | 608,719 | $ | 593,793 | $ | 572,613 | $ | 556,020 | $ | 539,139 | |||||
REGULATORY CAPITAL RATIOS (6): | |||||||||||||||
Total risk-based capital ratio | 15.22 | % | 14.95 | % | 14.93 | % | 13.71 | % | 13.54 | % | |||||
Tier 1 risk-based capital ratio | 11.61 | % | 11.34 | % | 11.25 | % | 11.07 | % | 11.16 | % | |||||
Tier 1 leverage capital ratio | 10.10 | % | 9.49 | % | 9.21 | % | 8.91 | % | 10.19 | % | |||||
Common equity tier 1 ratio | 10.83 | % | 10.55 | % | 10.44 | % | 10.25 | % | 10.31 | % | |||||
KEY PERFORMANCE RATIOS AND OTHER METRICS | |||||||||||||||
Return on average assets (annualized) | 1.27 | % | 1.25 | % | 1.19 | % | 0.95 | % | 0.91 | % | |||||
Return on average total equity (annualized) | 11.91 | % | 12.43 | % | 12.06 | % | 9.88 | % | 8.23 | % | |||||
Net interest margin | 3.26 | % | 3.25 | % | 3.36 | % | 3.14 | % | 3.40 | % | |||||
Net interest margin (TEY) (Non-GAAP)(7) | 3.43 | % | 3.45 | % | 3.51 | % | 3.27 | % | 3.56 | % | |||||
Efficiency ratio (Non-GAAP) (8) | 56.87 | % | 61.23 | % | 49.48 | % | 47.61 | % | 59.40 | % | |||||
Gross loans and leases / total assets (9) | 77.25 | % | 74.81 | % | 72.43 | % | 74.01 | % | 70.95 | % | |||||
Gross loans and leases / total deposits (9) | 94.15 | % | 92.43 | % | 90.92 | % | 95.18 | % | 88.83 | % | |||||
Effective tax rate | 16.45 | % | 17.99 | % | 18.80 | % | 16.92 | % | 14.37 | % | |||||
Full-time equivalent employees (10) | 720 | 714 | 687 | 712 | 703 | ||||||||||
AVERAGE BALANCES | |||||||||||||||
Assets | $ | 5,668,850 | $ | 5,842,299 | $ | 5,820,555 | $ | 5,800,164 | $ | 4,948,311 | |||||
Loans/leases | 4,271,782 | 4,250,951 | 4,185,275 | 3,999,523 | 3,686,410 | ||||||||||
Deposits | 4,628,889 | 4,742,602 | 4,726,881 | 4,732,626 | 3,954,707 | ||||||||||
Total stockholders' equity | 604,012 | 588,042 | 575,061 | 556,047 | 545,548 | ||||||||||
(1) Includes accumulated other comprehensive income (loss). | |||||||||||||||
(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets (Non-GAAP). | |||||||||||||||
(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) Excludes assets held for sale as of March 31, 2020 and June 30, 2020. | |||||||||||||||
(10) Growth in full-time equivalents from September 30, 2020 to December 31, 2020 due to the addition of new positions created to build scale. | |||||||||||||||
Decrease from June 30, 2020 to September 30, 2020 due to sale of Bates Companies and interns employed only during the summer. | |||||||||||||||
QCR Holdings, Inc. | |||||||||||||||||||||
Consolidated Financial Highlights | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
ANALYSIS OF NET INTEREST INCOME AND MARGIN | |||||||||||||||||||||
For the Quarter Ended | |||||||||||||||||||||
March 31, 2021 | December 31, 2020 | March 31, 2020 | |||||||||||||||||||
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 | $ | 1,847 | $ | 1 | 0.05 | % | $ | 1,216 | $ | 1 | 0.08 | % | $ | 5,324 | $ | 18 | 1.36 | % | |||
Interest-bearing deposits at financial institutions | 116,446 | 37 | 0.13 | % | 279,024 | 82 | 0.12 | % | 128,612 | 361 | 1.13 | % | |||||||||
Securities (1) | 810,059 | 7,050 | 3.48 | % | 795,696 | 7,207 | 3.62 | % | 619,307 | 6,080 | 3.95 | % | |||||||||
Restricted investment securities | 18,064 | 219 | 4.84 | % | 18,790 | 236 | 4.92 | % | 21,365 | 258 | 4.86 | % | |||||||||
Loans (1) | 4,271,782 | 42,525 | 4.04 | % | 4,250,951 | 44,956 | 4.21 | % | 3,686,410 | 44,056 | 4.81 | % | |||||||||
Total earning assets (1) | $ | 5,218,198 | $ | 49,832 | 3.86 | % | $ | 5,345,677 | $ | 52,482 | 3.91 | % | $ | 4,461,018 | $ | 50,773 | 4.58 | % | |||
Interest-bearing deposits | $ | 2,981,306 | $ | 1,986 | 0.27 | % | $ | 3,033,119 | $ | 2,060 | 0.27 | % | $ | 2,379,635 | $ | 5,328 | 0.90 | % | |||
Time deposits | 448,035 | 1,441 | 1.30 | % | 530,813 | 1,752 | 1.31 | % | 785,135 | 3,879 | 1.99 | % | |||||||||
Short-term borrowings | 7,141 | 1 | 0.07 | % | 19,115 | 3 | 0.17 | % | 19,315 | 64 | 1.33 | % | |||||||||
Federal Home Loan Bank advances | 13,078 | 9 | 0.28 | % | 33,207 | 80 | 0.94 | % | 111,407 | 449 | 1.62 | % | |||||||||
Subordinated debentures | 118,706 | 1,594 | 5.37 | % | 118,612 | 1,678 | 5.66 | % | 68,418 | 994 | 5.84 | % | |||||||||
Junior subordinated debentures | 38,007 | 559 | 5.88 | % | 37,969 | 571 | 5.88 | % | 37,853 | 571 | 6.07 | % | |||||||||
Total interest-bearing liabilities | $ | 3,606,273 | $ | 5,590 | 0.63 | % | $ | 3,772,835 | $ | 6,144 | 0.64 | % | $ | 3,401,763 | $ | 11,285 | 1.33 | % | |||
Net interest income (1) | $ | 44,242 | $ | 46,338 | $ | 39,488 | |||||||||||||||
Net interest margin (2) | 3.26 | % | 3.25 | % | 3.40 | % | |||||||||||||||
Net interest margin (TEY) (Non-GAAP) (1) (2) (3) | 3.43 | % | 3.45 | % | 3.56 | % | |||||||||||||||
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) | 3.40 | % | 3.37 | % | 3.50 | % | |||||||||||||||
(1) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a | |||||||||||||||||||||
(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 | |||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | |||||||||||
2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||
(dollars in thousands, except per share data) | |||||||||||||||
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES | |||||||||||||||
Beginning balance | $ | 84,376 | $ | 79,582 | $ | 60,827 | $ | 42,233 | $ | 36,001 | |||||
Adoption of ASU 2016-13 "CECL" - Day 1 adjustment | (8,102 | ) | - | - | - | - | |||||||||
Provision charged to expense | 5,993 | 7,080 | 20,342 | 19,915 | 8,367 | ||||||||||
Loans/leases charged off | (713 | ) | (2,779 | ) | (1,819 | ) | (1,450 | ) | (2,335 | ) | |||||
Recoveries on loans/leases previously charged off | 277 | 493 | 232 | 129 | 200 | ||||||||||
Ending balance | $ | 81,831 | $ | 84,376 | $ | 79,582 | $ | 60,827 | $ | 42,233 | |||||
NONPERFORMING ASSETS | |||||||||||||||
Nonaccrual loans/leases | $ | 13,863 | $ | 13,940 | $ | 17,597 | $ | 12,099 | $ | 11,628 | |||||
Accruing loans/leases past due 90 days or more | - | 3 | 86 | 99 | 1,419 | ||||||||||
Total nonperforming loans/leases | 13,863 | 13,943 | 17,683 | 12,198 | 13,047 | ||||||||||
Other real estate owned | 173 | 20 | 125 | 157 | 3,298 | ||||||||||
Other repossessed assets | 50 | 135 | 110 | 25 | 45 | ||||||||||
Total nonperforming assets | $ | 14,086 | $ | 14,098 | $ | 17,918 | $ | 12,380 | $ | 16,390 | |||||
ASSET QUALITY RATIOS | |||||||||||||||
Nonperforming assets / total assets (1) | 0.25 | % | 0.25 | % | 0.31 | % | 0.22 | % | 0.31 | % | |||||
ACL for loans and leases / total loans/leases (2) | 1.88 | % | 1.98 | % | 1.87 | % | 1.47 | % | 1.14 | % | |||||
ACL for loans and leases / nonperforming loans/leases (2) | 590.28 | % | 605.15 | % | 450.05 | % | 498.66 | % | 323.70 | % | |||||
Net charge-offs as a % of average loans/leases | 0.01 | % | 0.05 | % | 0.04 | % | 0.03 | % | 0.06 | % | |||||
INTERNALLY ASSIGNED RISK RATING (3) | |||||||||||||||
Special mention (rating 6) | $ | 53,466 | $ | 71,482 | $ | 79,587 | $ | 104,608 | $ | 34,738 | |||||
Substandard (rating 7) | 84,982 | 66,081 | 70,409 | 39,855 | 36,612 | ||||||||||
Doubtful (rating 8) | - | - | - | - | - | ||||||||||
$ | 138,448 | $ | 137,563 | $ | 149,996 | $ | 144,463 | $ | 71,350 | ||||||
Criticized loans (4) | $ | 138,448 | $ | 137,563 | $ | 149,996 | $ | 144,463 | $ | 71,350 | |||||
Classified loans (5) | 84,982 | 66,081 | 70,409 | 39,855 | 36,612 | ||||||||||
Criticized loans as a % of total loans/leases | 3.17 | % | 3.24 | % | 3.53 | % | 3.49 | % | 1.93 | % | |||||
Classified loans as a % of total loans/leases | 1.95 | % | 1.55 | % | 1.66 | % | 0.96 | % | 0.99 | % | |||||
(1) Excludes assets held for sale as of March 31, 2020 and June 30, 2020. | |||||||||||||||
(2) Prior to adoption of ASU 2016-13 "CECL", upon acquisition and per GAAP, acquired loans were recorded at market value, which eliminates the allowance and | |||||||||||||||
impacts this ratio. There have been no acquisitions since adopting ASU 2016-13 "CECL", which requires an allowance to be established on acquired loans. | |||||||||||||||
(3) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass (Rating 2) for the government guaranteed portion. | |||||||||||||||
(4) Criticized loans are defined as C&I and CRE loans with internally assigned risk ratings of 6, 7, or 8, regardless of performance. | |||||||||||||||
(5) Classified loans are defined as C&I and CRE loans with internally assigned risk ratings of 7 or 8, regardless of performance. |
QCR Holdings, Inc. | ||||||||||||||
Consolidated Financial Highlights | ||||||||||||||
(Unaudited) | ||||||||||||||
For the Quarter Ended | ||||||||||||||
March 31, | December 31, | March 31, | ||||||||||||
SELECT FINANCIAL DATA - SUBSIDIARIES | 2021 | 2020 | 2020 | |||||||||||
(dollars in thousands) | ||||||||||||||
TOTAL ASSETS | ||||||||||||||
Quad City Bank and Trust (1) | $ | 2,101,634 | $ | 2,149,469 | $ | 1,914,785 | ||||||||
m2 Equipment Finance, LLC | 245,842 | 243,090 | 237,198 | |||||||||||
Cedar Rapids Bank and Trust | 1,847,070 | 1,952,308 | 1,719,773 | |||||||||||
Community State Bank - Ankeny | 1,041,861 | 1,000,670 | 863,903 | |||||||||||
Springfield First Community Bank | 818,605 | 779,955 | 708,736 | |||||||||||
TOTAL DEPOSITS | ||||||||||||||
Quad City Bank and Trust (1) | $ | 1,841,518 | $ | 1,866,635 | $ | 1,678,889 | ||||||||
Cedar Rapids Bank and Trust | 1,362,927 | 1,378,108 | 1,247,989 | |||||||||||
Community State Bank - Ankeny | 912,419 | 875,400 | 743,645 | |||||||||||
Springfield First Community Bank | 602,274 | 569,036 | 524,420 | |||||||||||
TOTAL LOANS & LEASES | ||||||||||||||
Quad City Bank and Trust (1) | $ | 1,568,131 | $ | 1,556,762 | $ | 1,338,915 | ||||||||
m2 Equipment Finance, LLC | 249,478 | 244,325 | 235,144 | |||||||||||
Cedar Rapids Bank and Trust | 1,382,336 | 1,362,056 | 1,159,453 | |||||||||||
Community State Bank - Ankeny | 743,892 | 707,681 | 634,253 | |||||||||||
Springfield First Community Bank | 666,692 | 624,629 | 572,046 | |||||||||||
TOTAL LOANS & LEASES / TOTAL DEPOSITS | ||||||||||||||
Quad City Bank and Trust (1) | 85 | % | 83 | % | 80 | % | ||||||||
Cedar Rapids Bank and Trust | 101 | % | 99 | % | 93 | % | ||||||||
Community State Bank - Ankeny | 82 | % | 81 | % | 85 | % | ||||||||
Springfield First Community Bank | 111 | % | 110 | % | 109 | % | ||||||||
TOTAL LOANS & LEASES / TOTAL ASSETS | ||||||||||||||
Quad City Bank and Trust (1) | 75 | % | 72 | % | 70 | % | ||||||||
Cedar Rapids Bank and Trust | 75 | % | 70 | % | 67 | % | ||||||||
Community State Bank - Ankeny | 71 | % | 71 | % | 73 | % | ||||||||
Springfield First Community Bank | 81 | % | 80 | % | 81 | % | ||||||||
ACL ON LOANS/LEASES AS A PERCENTAGE OF LOANS/LEASES | ||||||||||||||
Quad City Bank and Trust (1) | 1.98 | % | 1.95 | % | 1.17 | % | ||||||||
m2 Equipment Finance, LLC | 3.73 | % | 2.63 | % | 1.50 | % | ||||||||
Cedar Rapids Bank and Trust (2) | 2.05 | % | 2.35 | % | 1.35 | % | ||||||||
Community State Bank - Ankeny (2) | 1.74 | % | 2.02 | % | 1.21 | % | ||||||||
Springfield First Community Bank (2) | 1.43 | % | 1.23 | % | 0.56 | % | ||||||||
RETURN ON AVERAGE ASSETS | ||||||||||||||
Quad City Bank and Trust (1) | 1.35 | % | 1.52 | % | 1.33 | % | ||||||||
Cedar Rapids Bank and Trust | 2.45 | % | 0.59 | % | 1.60 | % | ||||||||
Community State Bank - Ankeny | 0.81 | % | 3.25 | % | 0.50 | % | ||||||||
Springfield First Community Bank | 1.16 | % | 3.02 | % | 1.29 | % | ||||||||
NET INTEREST MARGIN PERCENTAGE (3) | ||||||||||||||
Quad City Bank and Trust (1) | 3.20 | % | 3.19 | % | 3.68 | % | ||||||||
Cedar Rapids Bank and Trust (4) | 3.55 | % | 3.51 | % | 3.43 | % | ||||||||
Community State Bank - Ankeny (5) | 3.70 | % | 3.77 | % | 3.91 | % | ||||||||
Springfield First Community Bank (6) | 3.55 | % | 4.03 | % | 3.83 | % | ||||||||
ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET | ||||||||||||||
INTEREST MARGIN, NET | ||||||||||||||
Cedar Rapids Bank and Trust | $ | 13 | $ | 103 | $ | 49 | ||||||||
Community State Bank - Ankeny | 317 | 132 | 64 | |||||||||||
Springfield First Community Bank | 211 | 880 | 552 | |||||||||||
QCR Holdings, Inc. (7) | (37 | ) | (38 | ) | (40 | ) | ||||||||
(1 | ) | Quad City Bank and Trust figures include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC is also presented separately for certain (applicable) measurements. | ||||||||||||
(2 | ) | Prior to adoption of ASU 2016-13 "CECL", upon acquisition and per GAAP, acquired loans were recorded at market value, which eliminates the allowance and impacts this ratio. There have been no acquisitions since adopting ASU 2016-13 "CECL", which requires an allowance to be established on acquired loans. | ||||||||||||
(3 | ) | Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a | ||||||||||||
(4 | ) | Cedar Rapids Bank and Trust's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been | ||||||||||||
(5 | ) | Community State Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been | ||||||||||||
(6 | ) | Springfield First Community Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been | ||||||||||||
(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 | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS | 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1) | ||||||||||||||||||||
Stockholders' equity (GAAP) | $ | 608,719 | $ | 593,793 | $ | 572,613 | $ | 556,020 | $ | 539,139 | ||||||||||
Less: Intangible assets | 84,939 | 85,447 | 85,968 | 88,120 | 88,669 | |||||||||||||||
Tangible common equity (non-GAAP) | $ | 523,780 | $ | 508,346 | $ | 486,645 | $ | 467,900 | $ | 450,470 | ||||||||||
Total assets (GAAP) | $ | 5,645,147 | $ | 5,682,797 | $ | 5,864,560 | $ | 5,604,761 | $ | 5,232,075 | ||||||||||
Less: Intangible assets | 84,939 | 85,447 | 85,968 | 88,120 | 88,669 | |||||||||||||||
Tangible assets (non-GAAP) | $ | 5,560,208 | $ | 5,597,350 | $ | 5,778,592 | $ | 5,516,641 | $ | 5,143,406 | ||||||||||
Tangible common equity to tangible assets ratio (non-GAAP) | 9.42 | % | 9.08 | % | 8.42 | % | 8.48 | % | 8.76 | % | ||||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO EXCLUDING PPP LOANS (1) | ||||||||||||||||||||
Stockholder's equity (GAAP) | $ | 608,719 | $ | 593,793 | $ | 572,613 | $ | 556,020 | $ | 539,139 | ||||||||||
Less: PPP loan interest income (post-tax) (2) | 9,479 | 7,691 | 4,934 | 2,085 | - | |||||||||||||||
Less: Intangible assets | 84,939 | 85,447 | 85,968 | 88,120 | 88,669 | |||||||||||||||
Tangible common equity, excluding PPP loan income (non-GAAP) | $ | 514,301 | $ | 500,655 | $ | 481,711 | $ | 465,815 | $ | 450,470 | ||||||||||
Total assets (GAAP) | $ | 5,645,147 | $ | 5,682,797 | $ | 5,864,560 | $ | 5,604,761 | $ | 5,232,075 | ||||||||||
Less: PPP loans | 243,860 | 273,146 | 357,506 | 358,052 | - | |||||||||||||||
Less: Intangible assets | 84,939 | 85,447 | 85,968 | 88,120 | 88,669 | |||||||||||||||
Tangible assets, excluding PPP loans (non-GAAP) | $ | 5,316,348 | $ | 5,324,204 | $ | 5,421,086 | $ | 5,158,589 | $ | 5,143,406 | ||||||||||
Tangible common equity to tangible assets ratio, excluding PPP loans (non-GAAP) | 9.67 | % | 9.40 | % | 8.89 | % | 9.03 | % | 8.76 | % | ||||||||||
(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 | ||||||||||||||||||||
QCR Holdings, Inc. | ||||||||||||||||||||
Consolidated Financial Highlights | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
GAAP TO NON-GAAP RECONCILIATIONS | For the Quarter Ended | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
ADJUSTED NET INCOME (1) | 2021 | 2020 | 2020 | 2020 | 2020 | |||||||||||||||
(dollars in thousands, except per share data) | ||||||||||||||||||||
Net income (GAAP) | $ | 17,982 | $ | 18,271 | $ | 17,344 | $ | 13,739 | $ | 11,228 | ||||||||||
Less non-core items (post-tax) (2): | ||||||||||||||||||||
Income: | ||||||||||||||||||||
Securities gains(losses), net | - | 487 | 1,424 | 51 | - | |||||||||||||||
Mark to market gains (losses) on derivatives, net | 129 | - | - | - | - | |||||||||||||||
Loss on syndicated loan | - | (210 | ) | - | - | - | ||||||||||||||
Total non-core income (non-GAAP) | $ | 129 | $ | 277 | $ | 1,424 | $ | 51 | $ | - | ||||||||||
Expense: | ||||||||||||||||||||
Losses on debt extinguishment, net | $ | - | $ | 1,151 | $ | 1,480 | $ | 339 | $ | 116 | ||||||||||
Goodwill impairment | - | - | - | - | 500 | |||||||||||||||
Disposition costs | 7 | 51 | 152 | (66 | ) | 408 | ||||||||||||||
Acquisition costs (4) | - | - | - | - | - | |||||||||||||||
Separation agreement | 734 | - | - | - | - | |||||||||||||||
Post-acquisition compensation, transition and integration costs | - | 20 | (25 | ) | 55 | 119 | ||||||||||||||
Loss on sale of subsidiary | - | (102 | ) | 212 | - | - | ||||||||||||||
Total non-core expense (non-GAAP) | $ | 741 | $ | 1,119 | $ | 1,819 | $ | 329 | $ | 1,143 | ||||||||||
Adjusted net income (non-GAAP) (1) | $ | 18,594 | $ | 19,113 | $ | 17,739 | $ | 14,016 | $ | 12,372 | ||||||||||
PRE-PROVISION/PRE-TAX ADJUSTED INCOME (1) | ||||||||||||||||||||
Net income (GAAP) | $ | 17,982 | $ | 18,271 | $ | 17,344 | $ | 13,739 | $ | 11,228 | ||||||||||
Less: Non-core income not tax-effected | 164 | 351 | 1,802 | 65 | - | |||||||||||||||
Plus: Non-core expense not tax-effected | 937 | 1,399 | 2,339 | 416 | 1,315 | |||||||||||||||
Provision expense | 6,713 | 7,080 | 20,342 | 19,915 | 8,367 | |||||||||||||||
Federal and state income tax expense | 3,541 | 4,009 | 4,016 | 2,798 | 1,884 | |||||||||||||||
Pre-provision/pre-tax adjusted income (non-GAAP) (1) | $ | 29,009 | $ | 30,408 | $ | 42,239 | $ | 36,803 | $ | 22,794 | ||||||||||
PRE-PROVISION/PRE-TAX ADJUSTED RETURN ON AVERAGE ASSETS (NON-GAAP) | ||||||||||||||||||||
Pre-provision/pre-tax adjusted income (non-GAAP) | $ | 29,009 | $ | 30,408 | $ | 42,239 | $ | 36,803 | $ | 22,794 | ||||||||||
Average Assets | $ | 5,668,850 | $ | 5,842,299 | $ | 5,820,555 | $ | 5,800,164 | $ | 4,948,311 | ||||||||||
Pre-provision/pre-tax adjusted return on average assets (non-GAAP) | 2.05 | % | 2.08 | % | 2.90 | % | 2.54 | % | 1.84 | % | ||||||||||
ADJUSTED EARNINGS PER COMMON SHARE (1) | ||||||||||||||||||||
Adjusted net income (non-GAAP) (from above) | $ | 18,594 | $ | 19,113 | $ | 17,739 | $ | 14,016 | $ | 12,372 | ||||||||||
Weighted average common shares outstanding | 15,803,643 | 15,775,596 | 15,767,152 | 15,747,056 | 15,796,796 | |||||||||||||||
Weighted average common and common equivalent shares outstanding | 16,025,548 | 15,973,054 | 15,923,578 | 15,895,336 | 16,011,456 | |||||||||||||||
Adjusted earnings per common share (non-GAAP): | ||||||||||||||||||||
Basic | $ | 1.18 | $ | 1.21 | $ | 1.13 | $ | 0.89 | $ | 0.78 | ||||||||||
Diluted | $ | 1.16 | $ | 1.20 | $ | 1.11 | $ | 0.88 | $ | 0.77 | ||||||||||
ADJUSTED RETURN ON AVERAGE ASSETS (1) | ||||||||||||||||||||
Adjusted net income (non-GAAP) (from above) | $ | 18,594 | $ | 19,113 | $ | 17,739 | $ | 14,016 | $ | 12,372 | ||||||||||
Average Assets | $ | 5,668,850 | $ | 5,842,299 | $ | 5,820,555 | $ | 5,800,164 | $ | 4,948,311 | ||||||||||
Adjusted return on average assets (annualized) (non-GAAP) | 1.31 | % | 1.31 | % | 1.22 | % | 0.97 | % | 1.00 | % | ||||||||||
NET INTEREST MARGIN (TEY) (4) | ||||||||||||||||||||
Net interest income (GAAP) | $ | 41,975 | $ | 43,707 | $ | 44,581 | $ | 40,948 | $ | 37,698 | ||||||||||
Plus: Tax equivalent adjustment (3) | 2,267 | 2,631 | 1,942 | 1,728 | 1,790 | |||||||||||||||
Net interest income - tax equivalent (Non-GAAP) | $ | 44,242 | $ | 46,338 | $ | 46,523 | $ | 42,676 | $ | 39,488 | ||||||||||
Less: Acquisition accounting net accretion | 504 | 1,077 | 833 | 736 | 625 | |||||||||||||||
Adjusted net interest income | $ | 43,738 | $ | 45,261 | $ | 45,690 | $ | 41,940 | $ | 38,863 | ||||||||||
Average earning assets | $ | 5,218,198 | $ | 5,345,677 | $ | 5,278,298 | $ | 5,252,663 | $ | 4,461,018 | ||||||||||
Net interest margin (GAAP) | 3.26 | % | 3.25 | % | 3.36 | % | 3.14 | % | 3.40 | % | ||||||||||
Net interest margin (TEY) (Non-GAAP) | 3.43 | % | 3.45 | % | 3.51 | % | 3.27 | % | 3.56 | % | ||||||||||
Adjusted net interest margin (TEY) (Non-GAAP) | 3.40 | % | 3.37 | % | 3.44 | % | 3.21 | % | 3.50 | % | ||||||||||
EFFICIENCY RATIO (5) | ||||||||||||||||||||
Noninterest expense (GAAP) | $ | 37,228 | $ | 46,364 | $ | 40,838 | $ | 33,122 | $ | 31,415 | ||||||||||
Net interest income (GAAP) | $ | 41,975 | $ | 43,707 | $ | 44,581 | $ | 40,948 | $ | 37,698 | ||||||||||
Noninterest income (GAAP) | 23,489 | 32,017 | 37,959 | 28,626 | 15,196 | |||||||||||||||
Total income | $ | 65,464 | $ | 75,724 | $ | 82,540 | $ | 69,574 | $ | 52,894 | ||||||||||
Efficiency ratio (noninterest expense/total income) (Non-GAAP) | 56.87 | % | 61.23 | % | 49.48 | % | 47.61 | % | 59.39 | % | ||||||||||
ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES TO TOTAL LOANS/LEASES, EXCLUDING PPP LOANS (6) | ||||||||||||||||||||
Allowance for credit losses on loans and leases | $ | 81,831 | $ | 84,376 | $ | 79,582 | $ | 60,827 | $ | 42,233 | ||||||||||
Total loans and leases | $ | 4,361,051 | $ | 4,251,129 | $ | 4,247,977 | $ | 4,140,259 | $ | 3,704,668 | ||||||||||
Less: PPP loans | 243,860 | 273,146 | 357,506 | 358,052 | - | |||||||||||||||
Total loans and leases, excluding PPP loans | $ | 4,117,191 | $ | 3,977,983 | $ | 3,890,471 | $ | 3,782,207 | $ | 3,704,668 | ||||||||||
Allowance for credit losses on loans and leases to total loans and leases, excluding PPP loans | 1.99 | % | 2.12 | % | 2.05 | % | 1.61 | % | 1.14 | % | ||||||||||
LOAN GROWTH ANNUALIZED, EXCLUDING PPP LOANS | ||||||||||||||||||||
Total loans and leases | $ | 4,361,051 | $ | 4,251,129 | $ | 4,247,977 | $ | 4,140,259 | $ | 3,704,668 | ||||||||||
Less: PPP loans | 243,860 | 273,146 | 357,506 | 358,052 | - | |||||||||||||||
Total loans and leases, excluding PPP loans | $ | 4,117,191 | $ | 3,977,983 | $ | 3,890,471 | $ | 3,782,207 | $ | 3,704,668 | ||||||||||
Loan growth annualized, excluding PPP loans | 14.00 | % | 9.00 | % | 11.45 | % | 8.37 | % | 1.57 | % | ||||||||||
(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 | ||||||||||||||||||||
liabilities of subsidiary has an estimated effective tax rate of | ||||||||||||||||||||
(3) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a | ||||||||||||||||||||
(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 credit losses on loans and leases to total loans and leases, excluding PPP loans is a non-GAAP measure. The Company's management utilizes this ratio to remove 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 credit loss allocation. |
FAQ
What were QCRH's net income and earnings per share for the first quarter of 2021?
How did QCRH's core loan growth perform in Q1 2021?
What was QCRH's net interest margin for the first quarter of 2021?
How much did QCRH's noninterest income change from Q4 2020 to Q1 2021?