QCR Holdings, Inc. (Nasdaq:QCRH) today made two significant
announcements regarding the Company's capital structure.
Complete Redemption of $14.9 Million in
Remaining Small Business Lending Fund Preferred
Stock
The Company had originally issued $40.1 million in Small
Business Lending Fund ("SBLF") Preferred Stock to the United States
Department of the Treasury ("Treasury") under the Small Business
Lending Fund Program in September of 2011, and had previously
redeemed $10.2 million of this Preferred Stock in June of 2012 and
another $15.0 million in March of 2014. With today's redemption of
the final $14.9 million of SBLF Preferred Stock, the Company has
completely exited the SBLF Program.
Filing of Form S-3 Shelf Registration
Statement
The Company today filed a universal shelf registration statement
on Form S-3 with the Securities and Exchange Commission ("SEC").
When declared effective by the SEC, the registration statement will
allow QCR Holdings, Inc. to issue various types of securities,
including common stock, preferred stock, debt securities and/or
warrants, from time to time up to an aggregate amount of $75
million. The specific terms and prices will be determined at the
time of any future offering and described in a separate prospectus
supplement, which would be filed with the SEC at the time of the
particular offering, if any.
"We are quite pleased to have been approved by Treasury and our
primary Federal regulator, the Federal Reserve Bank of Chicago, to
execute this final redemption of our remaining SBLF Preferred
Stock," stated Douglas M. Hultquist, President and Chief Executive
Officer. "Our goal had been to completely redeem our SBLF Preferred
Stock during 2014 and we are pleased to have been able to complete
this during the second quarter and to have been able to accomplish
this without the need for a dilutive common equity raise. In
addition, we filed the shelf registration statement today to help
us be in a position to more quickly take advantage of future
opportunities for organic growth in our existing markets and
potential acquisition opportunities."
QCR Holdings, Inc. continues to
execute on the Company's Long-Term Capital
Plan
"With today's redemption of the final $14.9 million in SBLF
Preferred Stock, we continue to demonstrate strong execution of our
long-term capital plan," stated Todd A. Gipple, Executive Vice
President, Chief Operating Officer, and Chief Financial Officer.
"The complete redemption of all of the Company's SBLF Preferred
Stock, when combined with our December 2013 conversion of the $25
million in Series E Convertible Preferred Stock, has significantly
changed our mix of capital from preferred equity to common
equity. Since June of 2012 we have converted or redeemed $65.1
million of preferred equity and have now completely eliminated any
ongoing preferred dividend commitment, while at the same time
increasing our common equity by $40.4 million and our tangible
common equity ratio from 3.94% to 5.02%. We have been able to
accomplish these results without a separate common equity
transaction that would have been dilutive to earnings per share and
tangible book value per share."
Mr. Gipple continued, "In addition to fully converting or
redeeming our preferred equity and eliminating our preferred
dividend commitment, the execution of our capital plan continues to
demonstrate our ability to reach our intended target of a tangible
common equity ratio of 6.5% organically, through continued earnings
growth and prudent management of capital. The Company and our
subsidiary banks continue to maintain capital at levels well above
the existing minimum requirements administered by the federal
regulatory agencies. By taking the additional action of filing
the shelf registration today, we are now in a position to more
quickly take advantage of future opportunities for growth and
potential acquisitions."
The Company expects to release second quarter 2014 earnings
results on Wednesday, July 23, 2014.
The shelf registration statement has been filed with the SEC,
but has not yet become effective. Securities may not be sold nor
may offers to buy be accepted prior to the time that the
registration statement becomes effective. This press release does
not constitute an offer to sell or the solicitation of an offer to
buy, nor shall there be any sale of these securities in any state
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities law of any
such state.
QCR Holdings, Inc., headquartered in Moline, Illinois, is a
relationship-driven, multi-bank holding company, which serves the
Quad City, Cedar Rapids, and Rockford communities through its
wholly owned subsidiary banks. Quad City Bank & Trust
Company, which is based in Bettendorf, Iowa, and commenced
operations in 1994, Cedar Rapids Bank & Trust Company, which is
based in Cedar Rapids, Iowa, and commenced operations in 2001, and
Rockford Bank & Trust Company, which is based in Rockford,
Illinois, and commenced operations in 2005, provide full-service
commercial and consumer banking and trust and asset management
services. Quad City Bank & Trust Company also engages in
commercial leasing through its wholly owned subsidiary, m2 Lease
Funds, LLC, based in Milwaukee, Wisconsin. With the acquisition of
Community National Bancorporation on May 13, 2013, the Company now
serves the Waterloo/Cedar Falls, Iowa community through Community
Bank & Trust, a division of Cedar Rapids Bank & Trust
Company.
Special Note Concerning Forward-Looking
Statements. This document contains, and future oral
and written statements of the Company and its management may
contain, forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 with respect to
the financial condition, results of operations, plans, objectives,
future performance and business of the
Company. Forward-looking statements, which may be based upon
beliefs, expectations and assumptions of the Company's management
and on information currently available to management, are generally
identifiable by the use of words such as "believe," "expect,"
"anticipate," "predict," "suggest," "appear," "plan," "intend,"
"estimate," "annualize," "may," "will," "would," "could," "should"
or other similar expressions. Additionally, all statements in
this document, including forward-looking statements, speak only as
of the date they are made, and the Company undertakes no obligation
to update any statement in light of new information or future
events.
A number of factors, many of which are beyond the ability of the
Company to control or predict, could cause actual results to differ
materially from those in its forward-looking statements. These
factors include, among others, the following: (i) the strength
of the local and national economy; (ii) the economic impact of
any future terrorist threats and attacks, and the response of the
United States to any such threats and attacks; (iii) changes
in state and federal laws, regulations and governmental policies
concerning the Company's general business, including Basel III, the
Dodd-Frank Wall Street Reform and Consumer Protection Act and the
regulations issued thereunder; (iv) changes in interest rates and
prepayment rates of the Company's assets; (v) increased
competition in the financial services sector and the inability to
attract new customers; (vi) changes in technology and the
ability to develop and maintain secure and reliable electronic
systems; (vii) the integration of acquired entities, including CNB;
(viii) the loss of key executives or employees;
(ix) changes in consumer spending; (x) unexpected
outcomes of existing or new litigation involving the Company; and
(xi) changes in accounting policies and practices. These
risks and uncertainties should be considered in evaluating
forward-looking statements and undue reliance should not be placed
on such statements. Additional information concerning the
Company and its business, including additional factors that could
materially affect the Company's financial results, is included in
the Company's filings with the Securities and Exchange
Commission.
CONTACT: Todd A. Gipple
Executive Vice President
Chief Operating Officer
Chief Financial Officer
(309) 743-7745
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