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

·22 min read

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

Second Quarter 2020 Highlights

  • Net income of $13.7 million, or $0.86 per diluted share

  • Adjusted net income (non-GAAP) of $14.0 million, or $0.88 per diluted share

  • Noninterest income of $28.6 million

  • Net interest margin was stable, excluding the impact of excess liquidity

  • Record pre-provision, pre-tax adjusted net income (non-GAAP) of $36.8 million

  • Pre-provision, pre-tax adjusted ROAA (non-GAAP) of 2.54%

  • Provision expense of $19.9 million for the quarter, increasing ALLL by 33 bps to 1.47%

  • Nonperforming assets to total assets of 0.24%, improving 8 basis points from the prior quarter

  • Annualized core loan and lease growth (non-GAAP) of 8.4% for the quarter, excluding SBA Paycheck Protection Program (PPP) loans

  • Annualized deposit growth of 17.2% for the quarter

  • PPP loan participation of 1,655 totaling $358 million to both new and existing clients

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

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

 

For the Quarter Ended

 

 

June 30,

March 31,

June 30,

 

 

$ in millions (except per share data)

 

2020

 

 

2020

 

 

2019

 

 

 

Net Income

$

  13.7

 

$

  11.2

 

$

  13.5

 

 

 

Diluted EPS

$

  0.86

 

$

  0.70

 

$

  0.85

 

 

 

Adjusted Net Income (non-GAAP)

$

  14.0

 

$

  12.4

 

$

  14.1

 

 

 

Adjusted Diluted EPS (non-GAAP)

$

  0.88

 

$

  0.77

 

$

  0.88

 

 

 

Pre-Provision/Pre-Tax Adjusted Income (non-GAAP)

$

  36.8

 

$

  22.8

 

$

  19.3

 

 

 

Pre-Provision/Pre-Tax Adjusted ROAA (non-GAAP)

 

  2.54

%

 

  1.84

%

 

  1.52

%

 

 

  See GAAP to non-GAAP reconciliations

 

 

 

 

 

 

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

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

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

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

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

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

Net Interest Income of $40.9 million

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

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

 

For the Quarter Ended

 

June 30,

March 31,

June 30,

 

2020  

2020  

2019  

NIM

3.14

%

3.40

%

3.25

%

NIM (TEY)(non-GAAP)

3.27

%

3.56

%

3.40

%

Adjusted NIM (TEY)(non-GAAP)

3.21

%

3.50

%

3.31

%

See GAAP to non-GAAP reconciliations

 

 

 

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

Noninterest Income of $28.6 million

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

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

Noninterest Expenses of $33.1 million

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

NPAs at Historical Lows
Building Reserves for COVID-19

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

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

In accordance with GAAP for acquisition accounting, loans acquired through past acquisitions were recorded at market value; therefore, there was no allowance associated with the acquired loans at the acquisition date.  Management continues to evaluate the allowance needed on the acquired loans factoring in the net remaining discount of $5.5 million at June 30, 2020.

 Strong Capital Levels

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

Focus on Three Strategic Long-Term Initiatives

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

  • Organic loan and lease growth of 9% per year, funded by core deposits;

  • Grow fee-based income by at least 6% per year; and

  • Limit our annual operating expense growth to 5% per year.

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

Conference Call Details
The Company will host an earnings call/webcast tomorrow, July 28, 2020, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through August 11, 2020. The replay access information is 877-344-7529 (international 412-317-0088); access code 10145663. A webcast of the teleconference can be accessed at the Companys News and Events page at www.qcrh.com . An archived version of the webcast will be available at the same location shortly after the live event has ended.

About Us

QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, and Springfield communities through its wholly-owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, and Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. Quad City Bank & Trust Company engages in commercial leasing through its wholly-owned subsidiary, m2 Lease Funds, LLC, based in Milwaukee, Wisconsin, and also provides correspondent banking services. The Company has 25 locations in Illinois, Iowa, Wisconsin and Missouri. As of June 30, 2020, the Company had approximately $5.6 billion in assets, $4.1 billion in loans and $4.3 billion in deposits. For additional information, please visit the Companys 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 Companys 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 Companys general business; (v) changes in interest rates and prepayment rates of the Companys 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 Companys financial results, is included in the Companys filings with the Securities and Exchange Commission.

Contacts:

Todd A. Gipple
President
Chief Operating Officer
Chief Financial Officer
(309) 743-7745
tgipple@qcrh.com

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



  QCR Holdings, Inc.  

 

 

 

 

 

  Consolidated Financial Highlights

 

 

 

 

 

  (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Held for Sale

Held for Sale

Held for Sale

Held for Sale

 

 

 

 

 

 

As of

 

 

As of

As of

As of

As of

 

 

 

 

 

 

June 30,

March 31,

December 31,

September 30,

June 30,

 

 

June 30,

March 31,

December 31,

September 30,

 

 

 

 

 

 

 

2020

 

2020

 

2019

 

2019

 

2019

 

 

 

2020

 

2020

 

2019

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

88,577

$

169,827

$

76,254

$

91,671

$

87,919

 

 

$

-

$

-

$

-

$

11,031

 

 

 

 

 

Federal funds sold and interest-bearing deposits

 

142,900

 

206,708

 

157,691

 

197,263

 

205,497

 

 

 

-

 

-

 

-

 

2,415

 

 

 

 

 

Securities

 

748,883

 

684,571

 

611,341

 

555,409

 

643,803

 

 

 

-

 

-

 

-

 

66,009

 

 

 

 

 

Net loans/leases

 

4,079,432

 

3,662,435

 

3,654,204

 

3,574,154

 

3,869,415

 

 

 

-

 

-

 

-

 

362,011

 

 

 

 

 

Intangibles

 

13,872

 

14,421

 

14,970

 

15,529

 

16,089

 

 

 

-

 

-

 

-

 

-

 

 

 

 

 

Goodwill

 

74,248

 

74,248

 

74,748

 

77,748

 

77,748

 

 

 

-

 

-

 

-

 

-

 

 

 

 

 

Derivatives

 

225,164

 

195,973

 

87,827

 

104,388

 

65,922

 

 

 

-

 

-

 

-

 

-

 

 

 

 

 

Other assets

 

220,920

 

213,134

 

220,049

 

210,673

 

228,459

 

 

 

10,765

 

10,758

 

11,966

 

24,081

 

 

 

 

 

Assets held for sale

 

10,765

 

10,758

 

11,966

 

465,547

 

-

 

 

 

-

 

-

 

-

 

-

 

 

 

 

 

Total assets

$

5,604,761

$

5,232,075

$

4,909,050

$

5,292,382

$

5,194,852

 

 

$

10,765

$

10,758

$

11,966

$

465,547

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total deposits

$

4,349,775

$

4,170,478

$

3,911,051

$

3,802,241

$

4,322,510

 

 

$

-

$

-

$

-

$

451,546

 

 

 

 

 

Total borrowings

 

376,250

 

244,399

 

278,955

 

320,457

 

230,953

 

 

 

-

 

-

 

-

 

16,157

 

 

 

 

 

Derivatives

 

233,589

 

203,744

 

88,436

 

109,242

 

69,556

 

 

 

-

 

-

 

-

 

-

 

 

 

 

 

Other liabilities

 

87,539

 

71,185

 

90,254

 

70,169

 

67,533

 

 

 

1,588

 

3,130

 

5,003

 

2,827

 

 

 

 

 

Liabilities held for sale

 

1,588

 

3,130

 

5,003

 

470,530

 

-

 

 

 

-

 

-

 

-

 

-

 

 

 

 

 

Total stockholders' equity

 

556,020

 

539,139

 

535,351

 

519,743

 

504,300

 

 

 

-

 

-

 

-

 

-

 

 

 

 

 

Total liabilities and stockholders' equity

$

5,604,761

$

5,232,075

$

4,909,050

$

5,292,382

$

5,194,852

 

 

$

1,588

$

3,130

$

5,003

$

470,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANALYSIS OF LOAN PORTFOLIO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan/lease mix:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial and industrial loans

$

1,850,110

$

1,484,979

$

1,507,825

$

1,469,978

$

1,548,657

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate loans

 

1,869,162

 

1,783,086

 

1,736,396

 

1,687,922

 

1,837,473

 

 

 

 

 

 

 

 

 

 

 

Direct financing leases

 

79,105

 

83,324

 

87,869

 

92,307

 

101,180

 

 

 

 

 

 

 

 

 

 

 

Residential real estate loans

 

241,069

 

237,742

 

239,904

 

245,667

 

293,479

 

 

 

 

 

 

 

 

 

 

 

Installment and other consumer loans

 

99,150

 

106,728

 

109,352

 

106,540

 

120,947

 

 

 

 

 

 

 

 

 

 

 

Deferred loan/lease origination costs, net of fees

 

1,663

 

8,809

 

8,859

 

7,856

 

8,783

 

 

 

 

 

 

 

 

 

 

 

Total loans/leases

$

4,140,259

$

3,704,668

$

3,690,205

$

3,610,270

$

3,910,519

 

 

 

 

 

 

 

 

 

 

 

Less allowance for estimated losses on loans/leases

 

60,827

 

42,233

 

36,001

 

36,116

 

41,104

 

 

 

 

 

 

 

 

 

 

 

Net loans/leases

$

4,079,432

$

3,662,435

$

3,654,204

$

3,574,154

$

3,869,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANALYSIS OF SECURITIES PORTFOLIO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities mix:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government sponsored agency securities

$

17,472

$

19,457

$

20,078

$

21,268

$

35,762

 

 

 

 

 

 

 

 

 

 

 

Municipal securities

 

526,192

 

493,664

 

447,853

 

391,329

 

440,853

 

 

 

 

 

 

 

 

 

 

 

Residential mortgage-backed and related securities

 

145,672

 

122,853

 

120,587

 

123,880

 

159,228

 

 

 

 

 

 

 

 

 

 

 

Asset backed securities

 

39,797

 

28,499

 

16,887

 

10,957

 

-

 

 

 

 

 

 

 

 

 

 

 

Other securities

 

19,750

 

20,098

 

5,936

 

7,975

 

7,960

 

 

 

 

 

 

 

 

 

 

 

Total securities

$

748,883

$

684,571

$

611,341

$

555,409

$

643,803

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANALYSIS OF DEPOSITS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposit mix:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand deposits

$

1,177,482

$

829,782

$

777,224

$

782,232

$

795,951

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

2,488,755

 

2,440,907

 

2,407,502

 

2,245,557

 

2,505,956

 

 

 

 

 

 

 

 

 

 

 

Time deposits

 

560,982

 

617,979

 

571,343

 

536,352

 

733,135

 

 

 

 

 

 

 

 

 

 

 

Brokered deposits

 

122,556

 

281,810

 

154,982

 

238,100

 

287,468

 

 

 

 

 

 

 

 

 

 

 

Total deposits

$

4,349,775

$

4,170,478

$

3,911,051

$

3,802,241

$

4,322,510

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANALYSIS OF BORROWINGS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings mix:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Term FHLB advances

$

90,000

$

55,000

$

50,000

$

60,000

$

46,433

 

 

 

 

 

 

 

 

 

 

 

Overnight FHLB advances (1)

 

55,000

 

40,000

 

109,300

 

135,800

 

59,300

 

 

 

 

 

 

 

 

 

 

 

FRB borrowings

 

100,000

 

30,000

 

-

 

-

 

-

 

 

 

 

 

 

 

 

 

 

 

Other short-term borrowings

 

24,818

 

13,067

 

13,423

 

18,526

 

19,191

 

 

 

 

 

 

 

 

 

 

 

Subordinated notes

 

68,516

 

68,455

 

68,394

 

68,334

 

68,274

 

 

 

 

 

 

 

 

 

 

 

Junior subordinated debentures

 

37,916

 

37,877

 

37,838

 

37,797

 

37,755

 

 

 

 

 

 

 

 

 

 

 

Total borrowings

$

376,250

$

244,399

$

278,955

$

320,457

$

230,953

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 0.37%.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



  QCR Holdings, Inc.    

 

 

 

 

 

  Consolidated Financial Highlights  

 

 

 

 

 

  (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

 

 

 

 

 

 

 

June 30,

March 31,

December 31,

September 30,

June 30,

 

 

 

 

 

 

 

 

 

2020

 

 

2020

 

2019

 

2019

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME STATEMENT

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

48,650

 

$

48,982

$

52,977

$

56,817

 

$

54,181

 

 

 

 

 

 

Interest expense

 

 

7,702

 

 

11,284

 

13,058

 

16,098

 

 

16,168

 

 

 

 

 

 

Net interest income

 

 

40,948

 

 

37,698

 

39,919

 

40,719

 

 

38,013

 

 

 

 

 

 

Provision for loan/lease losses

 

 

19,915

 

 

8,367

 

979

 

2,012

 

 

1,941

 

 

 

 

 

 

Net interest income after provision for loan/lease losses

 

$

21,033

 

$

29,331

$

38,940

$

38,707

 

$

36,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust department fees

 

$

2,227

 

$

2,312

$

2,365

$

2,340

 

$

2,361

 

 

 

 

 

 

Investment advisory and management fees

 

 

1,399

 

 

1,727

 

1,589

 

1,782

 

 

1,888

 

 

 

 

 

 

Deposit service fees

 

 

1,286

 

 

1,477

 

1,787

 

1,813

 

 

1,658

 

 

 

 

 

 

Gain on sales of residential real estate loans

 

 

1,196

 

 

652

 

823

 

890

 

 

489

 

 

 

 

 

 

Gain on sales of government guaranteed portions of loans

 

 

-

 

 

-

 

159

 

519

 

 

39

 

 

 

 

 

 

Swap fee income

 

 

19,927

 

 

6,804

 

7,409

 

9,797

 

 

7,891

 

 

 

 

 

 

Securities gains (losses), net

 

 

65

 

 

-

 

26

 

(3

)

 

(52

)

 

 

 

 

 

Earnings on bank-owned life insurance

 

 

612

 

 

329

 

533

 

489

 

 

412

 

 

 

 

 

 

Debit card fees

 

 

775

 

 

758

 

766

 

886

 

 

914

 

 

 

 

 

 

Correspondent banking fees

 

 

198

 

 

215

 

194

 

189

 

 

172

 

 

 

 

 

 

Gain on sale of assets and liabilities of subsidiary

 

 

-

 

 

-

 

12,286

 

-

 

 

-

 

 

 

 

 

 

Other

 

 

 

941

 

 

922

 

1,868

 

1,204

 

 

1,293

 

 

 

 

 

 

Total noninterest income

 

$

28,626

 

$

15,196

$

29,805

$

19,906

 

$

17,065

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

$

21,304

 

$

18,519

$

24,220

$

24,215

 

$

22,749

 

 

 

 

 

 

Occupancy and equipment expense

 

 

3,748

 

 

4,032

 

4,019

 

3,860

 

 

3,533

 

 

 

 

 

 

Professional and data processing fees

 

 

3,646

 

 

3,369

 

3,570

 

4,030

 

 

3,031

 

 

 

 

 

 

Post-acquisition compensation, transition and integration costs

 

 

70

 

 

151

 

1,855

 

884

 

 

708

 

 

 

 

 

 

Disposition costs

 

 

(83

)

 

517

 

3,325

 

-

 

 

-

 

 

 

 

 

 

FDIC insurance, other insurance and regulatory fees

 

 

908

 

 

683

 

523

 

542

 

 

926

 

 

 

 

 

 

Loan/lease expense

 

 

339

 

 

228

 

349

 

221

 

 

312

 

 

 

 

 

 

Net cost of (income from) and gains/losses on operations of other real estate

 

 

(332

)

 

13

 

232

 

2,078

 

 

1,182

 

 

 

 

 

 

Advertising and marketing

 

 

552

 

 

682

 

1,670

 

1,056

 

 

1,037

 

 

 

 

 

 

Bank service charges

 

 

501

 

 

504

 

516

 

502

 

 

508

 

 

 

 

 

 

Losses on debt extinguishment, net

 

 

429

 

 

147

 

288

 

148

 

 

-

 

 

 

 

 

 

Correspondent banking expense

 

 

212

 

216 216 209 206 Intangibles amortization 548 549 560 560 615 Goodwill impairment - 500 3,000 - - Other 1,280 1,305 1,951 1,640 1,753 Total noninterest expense $ 33,122 $ 31,415$ 46,294$ 39,945 $ 36,560 Net income before income taxes $ 16,537 $ 13,112$ 22,451$ 18,668 $ 16,577 Federal and state income tax expense 2,798 1,884 6,560 3,573 3,073 Net income $ 13,739 $ 11,228$ 15,891$ 15,095 $ 13,504 Basic EPS $0.87 $0.71$1.01$0.96 $0.86 Diluted EPS $0.86 $0.70$0.99$0.94 $0.85 Weighted average common shares outstanding 15,747,056 15,796,796 15,772,703 15,739,430 15,714,588 Weighted average common and common equivalent shares outstanding 15,895,336 16,011,456 16,033,043 15,976,742 15,938,377



QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

For the Six Months Ended

June 30,

June 30,

2020

2019

(dollars in thousands, except per share data)

INCOME STATEMENT

Interest income

$

97,632

$

106,283

Interest expense

18,986

31,362

Net interest income

78,646

74,921

Provision for loan/lease losses

28,282

4,075

Net interest income after provision for loan/lease losses

$

50,364

$

70,846

Trust department fees

4,539

$

4,854

Investment advisory and management fees

3,126

3,624

Deposit service fees

2,763

3,212

Gain on sales of residential real estate loans

1,848

858

Gain on sales of government guaranteed portions of loans

-

70

Swap fee income

26,731

11,089

Securities losses, net

65

(52

)

Earnings on bank-owned life insurance

941

952

Debit card fees

1,533

1,706

Correspondent banking fees

413

388

Other

1,863

2,357

Total noninterest income

$

43,822

$

29,058

Salaries and employee benefits

39,823

$

43,628

Occupancy and equipment expense

7,780

7,227

Professional and data processing fees

7,015

5,781

Post-acquisition compensation, transition and integration costs

221

842

Disposition costs

434

-

FDIC insurance, other insurance and regulatory fees

1,591

1,890

Loan/lease expense

567

526

Net cost of operation of other real estate

(319

)

1,480

Advertising and marketing

1,234

1,822

Bank service charges

1,005

991

Losses on debt extinguishment, net

576

-

Correspondent banking expense

428

410

Intangibles amortization

1,097

1,147

Goodwill impairment

500

-

Other

2,585

3,251

Total noninterest expense

$

64,537

$

68,995

Net income before taxes

$

29,649

$

30,909

Income tax expense

4,682

4,487

Net income

$

24,967

$

26,422

Basic EPS

$

1.58

$

1.68

Diluted EPS

$

1.56

$

1.66

Weighted average common shares outstanding

15,771,926

15,703,967

Weighted average common and common equivalent shares outstanding

15,956,958

15,930,659



QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

As of and for the Quarter Ended

For the Six Months Ended

June30,

March 31,

December 31,

September 30,

June 30,

June 30,

June 30,

2020

2020

2019

2019

2019

2020

2019

(dollars in thousands, except per share data)

COMMON SHARE DATA

Common shares outstanding

15,790,611

15,773,736

15,828,098

15,790,462

15,772,939

Book value per common share (1)

$

35.21

$

34.18

$

33.82

$

32.91

$

31.97

Tangible book value per common share (2)

$

29.63

$

28.56

$

28.15

$

27.01

$

26.02

Closing stock price

$

31.18

$

27.07

$

43.86

$

37.98

$

34.87

Market capitalization

$

492,351

$

426,995

$

694,220

$

599,722

$

550,002

Market price / book value

88.55

%

79.20

%

129.69

%

115.40

%

109.06

%

Market price / tangible book value

105.23

%

94.79

%

155.76

%

140.61

%

134.00

%

Earnings per common share (basic) LTM (3)

$

3.55

$

3.54

$

3.65

$

3.49

$

3.10

Price earnings ratio LTM (3)

8.78 x

7.65 x

12.02 x

10.88 x

11.25 x

TCE / TA (4)

8.48

%

8.76

%

9.25

%

8.20

%

8.05

%

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

Beginning balance

$

539,139

$

535,351

$

519,743

$

504,300

$

488,407

Net income

13,739

11,228

15,891

15,095

13,504

Other comprehensive income (loss), net of tax

3,622

(3,691

)

(683

)

543

2,243

Common stock cash dividends declared

(945

)

(942

)

(947

)

(944

)

(942

)

Proceeds from issuance of 9,400 shares of common stock as a result of the performance based targets met for Bates Companies

-

-

399

-

-

Repurchase and cancellation of 100,932 shares of common stock as a result of a share repurchase program

-

(3,780

)

Other (5)

465

973

948

749

1,088

Ending balance

$

556,020

$

539,139

$

535,351

$

519,743

$

504,300

REGULATORY CAPITAL RATIOS (6):

Total risk-based capital ratio

13.74

%

13.54

%

13.33

%

12.22

%

12.04

%

Tier 1 risk-based capital ratio

11.11

%

11.16

%

11.04

%

9.94

%

9.76

%

Tier 1 leverage capital ratio

8.91

%

10.19

%

9.53

%

9.02

%

8.96

%

Common equity tier 1 ratio

10.28

%

10.31

%

10.18

%

9.12

%

8.93

%

KEY PERFORMANCE RATIOS AND OTHER METRICS

Return on average assets (annualized)

0.95

%

0.91

%

1.23

%

1.16

%

1.06

%

0.93

%

1.05

%

Return on average total equity (annualized)

10.29

%

8.23

%

11.93

%

11.70

%

10.84

%

9.30

%

10.78

%

Net interest margin

3.14

%

3.40

%

3.36

%

3.37

%

3.25

%

3.26

%

3.25

%

Net interest margin (TEY) (Non-GAAP)(7)

3.27

%

3.56

%

3.51

%

3.52

%

3.40

%

3.40

%

3.40

%

Efficiency ratio (Non-GAAP) (8)

47.61

%

59.39

%

66.40

%

65.89

%

66.38

%

52.70

%

66.35

%

Gross loans and leases / total assets (10)

74.01

%

70.95

%

75.36

%

74.80

%

75.28

%

74.01

%

75.28

%

Gross loans and leases / total deposits (10)

95.18

%

88.83

%

94.35

%

94.95

%

90.47

%

95.18

%

90.47

%

Effective tax rate

16.92

%

14.37

%

29.22

%

19.14

%

18.54

%

15.79

%

14.52

%

Full-time equivalent employees (9)

712

703

697

766

773

712

773

AVERAGE BALANCES

Assets

$

5,800,164

$

4,948,311

$

5,147,754

$

5,217,763

$

5,077,900

$

5,374,224

$

5,023,201

Loans/leases

3,999,523

3,686,410

3,868,435

3,962,464

3,839,674

3,842,967

3,799,645

Deposits

4,732,626

3,954,707

4,227,572

4,302,995

4,271,391

4,343,653

4,191,130

Total stockholders' equity

534,095

545,678

532,756

516,195

498,263

536,775

490,343

(1) Includes accumulated other comprehensive income (loss).

(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets.

(3) LTM : Last twelve months.

(4) TCE / TCA : tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations.

(5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.

(6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.

(7) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.

(8) See GAAP to Non-GAAP reconciliations.

(9) Decrease from June 30, 2019 and September 30, 2019 due to sale of subsidiary Rockford Bank & Trust.

(10) Excludes assets held for sale as of September 30, 2019, Deccember 31, 2019, March 31, 2020 and June 30, 2020.



QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

ANALYSIS OF NET INTEREST INCOME AND MARGIN (4)

For the Quarter Ended

June 30, 2020

March 31, 2020

June 30, 2019

Average Balance

Interest Earned or Paid

Average Yield or Cost

Average Balance

Interest Earned or Paid

Average Yield or Cost

Average Balance

Interest Earned or Paid

Average Yield or Cost

(dollars in thousands)

Fed funds sold

$

865

$

1

0.46

%

$

5,324

$

18

1.36

%

$

9,690

$

56

2.32

%

Interest-bearing deposits at financial institutions

533,483

135

0.10

%

128,612

361

1.13

%

182,651

1,168

2.56

%

Securities (1)

697,559

6,536

3.77

%

619,307

6,080

3.95

%

644,999

6,062

3.77

%

Restricted investment securities

21,234

288

5.46

%

21,365

258

4.86

%

21,007

290

5.54

%

Loans (1)

3,999,522

43,417

4.37

%

3,686,410

44,056

4.81

%

3,839,674

48,413

5.06

%

Total earning assets (1)

$

5,252,663

$

50,377

3.86

%

$

4,461,018

$

50,773

4.58

%

$

4,698,021

$

55,989

4.78

%

Interest-bearing deposits

$

2,840,860

$

2,429

0.34

%

$

2,379,635

$

5,328

0.90

%

$

2,461,768

$

8,271

1.35

%

Time deposits

809,233

3,337

1.66

%

785,135

3,879

1.99

%

1,013,391

5,554

2.20

%

Short-term borrowings

25,064

22

0.35

%

19,315

64

1.33

%

16,145

81

2.01

%

Federal Home Loan Bank advances

95,616

347

1.46

%

111,407

449

1.62

%

76,154

601

3.17

%

Other borrowings

-

-

0.00

%

-

-

0.00

%

10,550

92

3.50

%

Subordinated debentures

68,480

994

5.84

%

68,418

994

5.84

%

68,239

993

5.84

%

Junior subordinated debentures

37,891

572

6.07

%

37,853

571

6.07

%

37,731

576

6.12

%

Total interest-bearing liabilities

$

3,877,144

$

7,701

0.80

%

$

3,401,763

$

11,285

1.33

%

$

3,683,978

$

16,168

1.76

%

Net interest income / spread (1)

$

42,676

3.06

%

$

39,488

3.24

%

$

39,821

3.02

%

Net interest margin (2)

3.14

%

3.40

%

3.25

%

Net interest margin (TEY) (Non-GAAP) (1) (2) (3)

3.27

%

3.56

%

3.40

%

Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)

3.21

%

3.50

%

3.31

%

For the Six Months Ended

June 30, 2020

June 30, 2019

Average Balance

Interest Earned or Paid

Average Yield or Cost

Average Balance

Interest Earned or Paid

Average Yield or Cost

(dollars in thousands)

Fed funds sold

$

3,095

$

18

1.17

%

$

12,713

$

150

2.38

%

Interest-bearing deposits at financial institutions

331,048

495

0.30

%

169,057

2,091

2.49

%

Securities (1)

658,433

12,616

3.85

%

652,727

12,158

3.76

%

Restricted investment securities

21,300

546

5.15

%

21,146

598

5.70

%

Loans (1)

3,842,966

87,474

4.58

%

3,799,645

94,795

5.03

%

Total earning assets (1)

$

4,856,842

$

101,149

4.19

%

$

4,655,288

$

109,792

4.76

%

Interest-bearing deposits

$

2,610,248

$

7,756

0.60

%

$

2,374,939

$

15,445

1.31

%

Time deposits

797,184

7,216

1.82

%

1,012,925

10,859

2.16

%

Short-term borrowings

22,190

86

0.78

%

15,261

152

2.01

%

Federal Home Loan Bank advances

103,512

796

1.55

%

111,755

1,662

3.00

%

Other borrowings

-

-

0.00

%

27,126

539

4.01

%

Subordinated debentures

68,449

1,988

5.84

%

53,438

1,557

5.88

%

Junior subordinated debentures

37,872

1,144

6.07

%

37,709

1,148

6.14

%

Total interest-bearing liabilities

$

3,639,455

$

18,986

1.05

%

$

3,633,153

$

31,362

1.74

%

Net interest income / spread (1)

$

82,163

3.14

%

$

78,430

3.02

%

Net interest margin (2)

3.26

%

3.25

%

Net interest margin (TEY) (Non-GAAP) (1) (2) (3)

3.40

%

3.40

%

Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)

3.35

%

3.30

%

(1) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% tax rate.

(2) See "Select Financial Data - Subsidiaries" for a breakdown of amortization/accretion included in net interest margin for each period presented.

(3) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.



QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

As of

June 30,

March 31,

December 31,

September 30,

June 30,

2020

2020

2019

2019

2019

(dollars in thousands, except per share data)

ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES

Beginning balance

$

42,233

$

36,001

$

36,116

$

41,104

$

41,164

Reclassification of allowance related to held for sale loans

-

-

-

(6,122

)

-

Provision charged to expense (2)

19,915

8,367

979

1,584

1,941

Loans/leases charged off

(1,450

)

(2,335

)

(1,182

)

(741

)

(2,152

)

Recoveries on loans/leases previously charged off

129

200

88

291

151

Ending balance

$

60,827

$

42,233

$

36,001

$

36,116

$

41,104

NONPERFORMING ASSETS

Nonaccrual loans/leases

$

12,099

$

11,628

$

7,902

$

8,231

$

13,148

Accruing loans/leases past due 90 days or more

99

1,419

33

-

58

Troubled debt restructures - accruing

920

545

979

763

1,313

Total nonperforming loans/leases

13,118

13,592

8,914

8,994

14,519

Other real estate owned

157

3,298

4,129

4,248

8,637

Other repossessed assets

25

45

41

-

-

Total nonperforming assets

$

13,300

$

16,935

$

13,084

$

13,242

$

23,156

ASSET QUALITY RATIOS

Nonperforming assets / total assets (3)

0.24

%

0.32

%

0.27

%

0.27

%

0.45

%

Allowance / total loans/leases (1)

1.47

%

1.14

%

0.98

%

1.00

%

1.05

%

Allowance / nonperforming loans/leases (1)

463.69

%

310.72

%

403.87

%

401.56

%

283.10

%

Net charge-offs as a % of average loans/leases

0.03

%

0.06

%

0.03

%

0.01

%

0.05

%

(1) Upon acquisition and per GAAP, acquired loans are recorded at market value which eliminates the allowance and impacts these ratios.

(2) Excludes provision related to loans included in assets held for sale of $428 thousand for the quarter ending September 30, 2019.

(3) Excludes assets held for sale.



QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

For the Quarter Ended

For the Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

SELECT FINANCIAL DATA - SUBSIDIARIES

2020

2020

2019

2020

2019

(dollars in thousands)

TOTAL ASSETS

Quad City Bank and Trust (1)

$

1,984,245

$

1,914,785

$

1,637,115

m2 Lease Funds, LLC

241,114

237,198

234,072

Cedar Rapids Bank and Trust

2,021,043

1,719,773

1,527,521

Community State Bank - Ankeny

903,648

863,903

806,704

Springfield First Community Bank

745,474

708,736

671,644

TOTAL DEPOSITS

Quad City Bank and Trust (1)

$

1,707,970

$

1,678,889

$

1,434,467

Cedar Rapids Bank and Trust

1,351,784

1,247,989

1,283,151

Community State Bank - Ankeny

778,499

743,645

705,777

Springfield First Community Bank

564,710

524,420

471,340

TOTAL LOANS & LEASES

Quad City Bank and Trust (1)

$

1,485,971

$

1,338,915

$

1,273,400

m2 Lease Funds, LLC

239,351

235,144

230,676

Cedar Rapids Bank and Trust

1,380,672

1,159,453

1,100,823

Community State Bank - Ankeny

671,772

634,253

597,486

Springfield First Community Bank

601,843

572,046

515,566

TOTAL LOANS & LEASES / TOTAL DEPOSITS

Quad City Bank and Trust (1)

87

%

80

%

89

%

Cedar Rapids Bank and Trust

102

%

93

%

86

%

Community State Bank - Ankeny

86

%

85

%

85

%

Springfield First Community Bank

107

%

109

%

109

%

TOTAL LOANS & LEASES / TOTAL ASSETS

Quad City Bank and Trust (1)

75

%

70

%

78

%

Cedar Rapids Bank and Trust

68

%

67

%

72

%

Community State Bank - Ankeny

74

%

73

%

74

%

Springfield First Community Bank

81

%

81

%

77

%

ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES

Quad City Bank and Trust (1)

1.51

%

1.17

%

1.06

%

m2 Lease Funds, LLC

1.99

%

1.50

%

1.38

%

Cedar Rapids Bank and Trust (2)

1.62

%

1.35

%

1.19

%

Community State Bank - Ankeny (2)

1.56

%

1.21

%

1.09

%

Springfield First Community Bank (2)

0.94

%

0.56

%

0.37

%

RETURN ON AVERAGE ASSETS

Quad City Bank and Trust (1)

0.68

%

1.33

%

1.22

%

0.95

%

1.20

%

Cedar Rapids Bank and Trust

2.36

%

1.60

%

1.95

%

2.01

%

1.75

%

Community State Bank - Ankeny

0.25

%

0.50

%

1.17

%

0.37

%

1.12

%

Springfield First Community Bank

1.04

%

1.29

%

1.37

%

1.16

%

1.24

%

NET INTEREST MARGIN PERCENTAGE (3)

Quad City Bank and Trust (1)

2.88

%

3.68

%

3.29

%

3.22

%

3.26

%

Cedar Rapids Bank and Trust (5)

3.37

%

3.43

%

3.41

%

3.40

%

3.41

%

Community State Bank - Ankeny (4)

3.77

%

3.91

%

4.08

%

3.84

%

4.06

%

Springfield First Community Bank (6)

3.88

%

3.83

%

4.10

%

3.85

%

4.08

%

ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET

INTEREST MARGIN, NET