QCR Holdings, Inc. (NASDAQ:QCRH) today announced net income of $9.9
million and diluted earnings per share (“EPS”) of $0.70 for the
quarter ended December 31, 2017. This included $2.1 million
of acquisition costs and post-acquisition compensation, transition
and integration costs (after-tax) related to the previously
announced acquisition of Guaranty Bank and Trust Company (“Guaranty
Bank”), based in Cedar Rapids, Iowa, which closed on October 1,
2017. It also included $753 thousand of cost (after-tax)
related to the core processor conversion at Community State Bank
(“CSB”), based in Ankeny, Iowa, which is planned for late
2018. Additionally, due to the impact of the Tax Cuts and
Jobs Act (“Tax Act”), the Company recorded a $2.9 million increase
in the value of its net deferred tax asset, which was recorded as a
reduction in income tax expense in the fourth quarter of
2017. Excluding these, and other non-core items, the Company
reported core net income (non-GAAP) of $9.9 million and diluted EPS
of $0.70.
By comparison, for the quarter ended September 30, 2017, the
Company reported net income of $7.9 million and diluted EPS of
$0.58. This included $605 thousand of acquisition costs and
post-acquisition transition and integration costs (after-tax)
related to the acquisition of Guaranty Bank. Excluding these
costs and other non-core items, the Company reported core net
income (non-GAAP) of $8.5 million and diluted EPS of $0.63.
For the quarter ended December 31, 2016, the Company reported net
income of $8.5 million and diluted EPS of $0.64.
For the year ended December 31, 2017, the Company reported net
income of $35.7 million and diluted EPS of $2.61. Excluding
all non-core items, the Company reported core net income (non-GAAP)
of $36.3 million and diluted EPS of $2.66. By comparison, for
the year ended December 31, 2016, the Company reported net income
of $27.7 million and diluted EPS of $2.17. Excluding all
non-core items, the Company reported core net income (non-GAAP) of
$29.4 million and diluted EPS of $2.31 for the year ended December
31, 2016.
“We are pleased with our operating performance this year,”
commented Douglas M. Hultquist, President and Chief Executive
Officer, “and we continue to strategize and pursue ways to improve
our profitability through our ongoing key initiatives. We
finished the year on a strong note, with solid organic loan and
deposit growth, and significant fee income. The
acquisition of Guaranty Bank in the fourth quarter of 2017 and CSB
in the third quarter of 2016 also contributed to our improved
profitability.”
Organic Loan and Lease Growth of 15.2%
for the YearSwap Fee Income and Gains on the Sale
of Government Guaranteed Loans Total $4.3 million in
2017
During the fourth quarter of 2017, the Company’s total assets
increased $432.2 million, or 12%, to a total of $4.0 billion.
Of this growth in assets, $274.8 million was attributable to the
acquisition of Guaranty Bank. Total loans and leases grew
$287.7 million in the fourth quarter of 2017, of which $192.5
million was attributable to the acquisition of Guaranty Bank.
Loan and lease growth was primarily funded by deposit growth.
Deposits grew organically by $159.9 million, or 6% in the fourth
quarter of 2017.
“Organic loan and lease growth totaled $366.5 million for the
full year, or an annual growth rate of 15.2%,” commented Mr.
Hultquist. “We were quite pleased with another year of very
strong organic loan growth in 2017. We will continue to grow
loans organically through market share increases, as customers
continue to appreciate the way we do business and are attracted to
our relationship-based community banking model.”
“Swap fee income and gains on the sale of government guaranteed
loans were very strong in the fourth quarter and totaled $4.3
million for the full year. Given the nature of this fee
income source, large fluctuations can occur from
quarter-to-quarter, as we experienced in 2017,” stated Todd A.
Gipple, Executive Vice President, Chief Operating Officer and Chief
Financial Officer. “We plan to continue executing these types
of transactions, as they provide unique and beneficial solutions
for our clients.”
Net Interest Income Improvement
Driven By Strong Loan Growth and Acquisition
Net interest income totaled $31.8 million for the quarter ended
December 31, 2017. By comparison, net interest income totaled
$28.6 million and $29.3 million for the quarters ended September
30, 2017 and December 31, 2016, respectively.
Acquisition-related net accretion totaled $745 thousand for the
quarter ended December 31, 2017. By comparison,
acquisition-related net accretion totaled $474 thousand for the
quarter ended September 30, 2017 and $2.9 million for the quarter
ended December 31, 2016. Excluding acquisition-related net
accretion, net interest income of $31.0 million for the fourth
quarter of 2017 increased 11%, compared to $28.1 million for the
quarter ended September 30, 2017.
Net interest income totaled $116.1 million for the year ended
December 31, 2017. By comparison, net interest income totaled
$94.5 million for the year ended December 31, 2016.
“We saw the benefit of our strong organic loan growth during
2017 with a significant increase in net interest income this
quarter and for the full year. Net interest margin (excluding
acquisition accounting net accretion) decreased four basis points
when comparing linked quarters at 3.61% for the fourth quarter of
2017 and 3.65% for the third quarter of 2017,” stated Mr.
Gipple. “While we had strong organic loan growth in the
quarter, most of the growth occurred later in the quarter and as a
result we carried, on average, $52.2 million of excess liquidity in
the fourth quarter due to strong deposit growth. Excluding
this excess liquidity, our net interest margin would have increased
one basis point when comparing linked quarters.”
Nonperforming Assets Decrease in Fourth
Quarter
Nonperforming assets (“NPAs”) decreased $1.4 million in the
current quarter. The ratio of NPAs to total assets was 0.81%
at December 31, 2017, which was down from 0.95% at September 30,
2017 and down from 0.82% a year ago.
“Asset quality was stable in the fourth quarter. The
large CRE relationship that we added to NPAs in the third quarter
of this year was moved to other real estate owned and we charged
off a portion of the balance,” stated Mr. Hultquist. He
continued, “We remain committed to improving asset quality.”
The Company’s provision for loan and lease losses totaled $2.3
million for the fourth quarter of 2017, which was up $168 thousand
from the prior quarter, and down $344 thousand compared to the
fourth quarter of 2016. As of December 31, 2017, the
Company’s allowance to total loans and leases was 1.16%, which was
down compared to 1.31% at September 30, 2017 and down from 1.28% at
December 31, 2016.
In accordance with generally accepted accounting principles for
acquisition accounting, the loans acquired through the acquisition
of CSB and Guaranty Bank were recorded at market value; therefore,
there was no allowance associated with the acquired loans.
Management continues to evaluate the allowance needed on the
acquired loans factoring in the net remaining discount ($8.1
million at December 31, 2017). When factoring this remaining
discount into the Company’s allowance to total loans and leases
calculation, the Company’s allowance as a percentage of total loans
and leases increases from 1.16% to 1.43%.
Capital Levels Remain Strong
As of December 31, 2017, the Company’s total risk-based capital
ratio was 11.09%, the common equity tier 1 ratio was 9.06%, and the
tangible common equity to tangible assets ratio was 8.01%. By
comparison, these respective ratios were 11.49%, 9.33% and 8.31% as
of September 30, 2017. The decrease in ratios was primarily
due to the acquisition of Guaranty Bank, as well as strong loan
growth.
“As
a result of solid earnings performance, capital ratios continue to
be strong and we are growing tangible common equity at a steady
pace,” stated Mr. Gipple. He continued, “Additionally, the
Company issued $30.7 million in common stock, net of issuance
costs, as part of the Guaranty Bank acquisition. In total,
tangible common equity has increased $52.4 million or 20%
year-over-year when comparing December 31, 2017 to the same period
of the prior year, and tangible book value per share increased by
approximately 13%, increasing from $20.11 at December 31, 2016 to
$22.70 at December 31, 2017.”
Continued Focus on Seven Key
Initiatives
The Company continues to focus on the following initiatives in
an effort to improve profitability and drive increased shareholder
value:
- Strong organic loan and lease growth to maintain loans and
leases to total assets ratio in the range of 73-78%
- Grow core deposits to maintain reliance on wholesale funding at
less than 15% of assets
- Generate gains on sale of USDA and SBA loans, and fee income on
interest rate swaps, as a significant and consistent component of
core revenue
- Grow wealth management net income by 10% annually
- Carefully manage noninterest expense growth
- Maintain asset quality metrics at better than peer levels
- Participate as an acquirer in the consolidation taking place in
our industry to further boost ROAA, improve efficiency ratio, and
increase EPS
Conference Call Details
The Company will host an earnings call/webcast on February 2,
2018 at 10 a.m. central time. Dial-in information for the
call is toll-free 1-888-317-6016 (international 1-412-317-6016).
Participants should request to join the QCR Holdings, Inc.
call. The event will be archived and available for digital replay
through February 16, 2018. The replay access information is
toll-free 1-877-344-7529 (international 1-412-317-0088); access
code 10116044. A webcast of the teleconference can be
accessed at the Company’s News and Events page at
http://www.qcrh.com or
https://services.choruscall.com/links/qcrh180202.html . The
archived audio webcast will be available until February 2,
2019. Participants should visit the Company’s website or call
in to the conference line set forth above at least 10 minutes prior
to the scheduled start of the call.
About Us
QCR Holdings, Inc., headquartered in Moline, Illinois, is a
relationship-driven, multi-bank holding company, which serves the
Quad City, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, 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, Community State Bank, which is based
in Ankeny, Iowa and was acquired by the Company in 2016, 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 wealth management
services. Quad City Bank & Trust Company also provides
correspondent banking services. In addition, Quad City Bank
& Trust Company engages in commercial leasing through its
wholly owned subsidiary, m2 Lease Funds, LLC, based in Milwaukee,
Wisconsin. Additionally, the Company serves the
Waterloo/Cedar Falls, Iowa community through Community Bank &
Trust, a division of Cedar Rapids Bank & Trust Company.
The Company enhanced its presence in Cedar Rapids, Iowa with the
acquisition of Guaranty Bank & Trust Company in October 2017,
which merged with Cedar Rapids Bank & Trust in December
2017.
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, national and international economies;
(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; (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)
unexpected results of acquisitions, including the acquisition of
Guaranty Bank, which may include failure to realize the anticipated
benefits of the acquisition and the possibility that the
transaction costs may be greater than anticipated; (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.
|
|
|
|
|
|
|
|
As of |
|
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
|
2017 |
2017 |
2017 |
2017 |
2016 |
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
CONDENSED BALANCE SHEET |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from
banks |
$ |
75,722 |
$ |
56,275 |
$ |
77,161 |
$ |
56,326 |
$ |
70,570 |
|
Federal funds sold and
interest-bearing deposits |
|
85,962 |
|
61,789 |
|
72,354 |
|
173,219 |
|
86,206 |
|
Securities |
|
652,382 |
|
583,936 |
|
593,485 |
|
557,646 |
|
574,022 |
|
Net loans/leases |
|
2,930,130 |
|
2,641,772 |
|
2,520,209 |
|
2,403,791 |
|
2,374,730 |
|
Core deposit
intangible |
|
9,079 |
|
6,689 |
|
6,919 |
|
7,150 |
|
7,381 |
|
Goodwill |
|
28,334 |
|
13,111 |
|
13,111 |
|
13,111 |
|
13,111 |
|
Other assets |
|
201,056 |
|
186,891 |
|
173,948 |
|
169,770 |
|
175,924 |
|
Total assets |
$ |
3,982,665 |
$ |
3,550,463 |
$ |
3,457,187 |
$ |
3,381,013 |
$ |
3,301,944 |
|
|
|
|
|
|
|
|
Total deposits |
$ |
3,266,655 |
$ |
2,894,268 |
$ |
2,870,234 |
$ |
2,805,931 |
$ |
2,669,261 |
|
Total borrowings |
|
309,479 |
|
296,145 |
|
230,263 |
|
231,534 |
|
290,952 |
|
Other liabilities |
|
53,244 |
|
47,011 |
|
51,607 |
|
47,708 |
|
55,690 |
|
Total stockholders'
equity |
|
353,287 |
|
313,039 |
|
305,083 |
|
295,840 |
|
286,041 |
|
Total liabilities and stockholders' equity |
$ |
3,982,665 |
$ |
3,550,463 |
$ |
3,457,187 |
$ |
3,381,013 |
$ |
3,301,944 |
|
|
|
|
|
|
|
|
ANALYSIS OF LOAN PORTFOLIO |
|
|
|
|
|
|
Loan/lease mix: |
|
|
|
|
|
|
Commercial and industrial loans |
$ |
1,134,516 |
$ |
1,034,530 |
$ |
942,539 |
$ |
851,578 |
$ |
827,637 |
|
Commercial real estate loans |
|
1,303,492 |
|
1,157,855 |
|
1,131,906 |
|
1,106,842 |
|
1,093,459 |
|
Direct
financing leases |
|
141,448 |
|
147,063 |
|
153,337 |
|
159,368 |
|
165,419 |
|
Residential real estate loans |
|
258,646 |
|
239,958 |
|
233,871 |
|
231,326 |
|
229,233 |
|
Installment and other consumer loans |
|
118,611 |
|
89,606 |
|
84,047 |
|
78,771 |
|
81,666 |
|
Deferred
loan/lease origination costs, net of fees |
|
7,773 |
|
7,742 |
|
7,866 |
|
7,965 |
|
8,073 |
|
Total loans/leases |
$ |
2,964,486 |
$ |
2,676,754 |
$ |
2,553,566 |
$ |
2,435,850 |
$ |
2,405,487 |
|
Less
allowance for estimated losses on loans/leases |
|
34,356 |
|
34,982 |
|
33,357 |
|
32,059 |
|
30,757 |
|
Net
loans/leases |
$ |
2,930,130 |
$ |
2,641,772 |
$ |
2,520,209 |
$ |
2,403,791 |
$ |
2,374,730 |
|
|
|
|
|
|
|
|
ANALYSIS OF SECURITIES PORTFOLIO |
|
|
|
|
|
|
Securities mix: |
|
|
|
|
|
|
U.S.
government sponsored agency securities |
$ |
38,097 |
$ |
39,340 |
$ |
41,944 |
$ |
47,556 |
$ |
46,084 |
|
Municipal
securities |
|
445,049 |
|
379,694 |
|
381,254 |
|
356,776 |
|
374,463 |
|
Residential mortgage-backed and related securities |
|
163,301 |
|
158,969 |
|
164,415 |
|
147,504 |
|
147,702 |
|
Other
securities |
|
5,935 |
|
5,933 |
|
5,872 |
|
5,810 |
|
5,773 |
|
Total
securities |
$ |
652,382 |
$ |
583,936 |
$ |
593,485 |
$ |
557,646 |
$ |
574,022 |
|
|
|
|
|
|
|
|
ANALYSIS OF DEPOSITS |
|
|
|
|
|
|
Deposit mix: |
|
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
789,548 |
$ |
715,537 |
$ |
760,625 |
$ |
777,150 |
$ |
797,415 |
|
Interest-bearing demand deposits |
|
1,855,893 |
|
1,614,894 |
|
1,526,103 |
|
1,486,047 |
|
1,369,226 |
|
Time
deposits |
|
516,058 |
|
430,270 |
|
478,580 |
|
458,170 |
|
439,169 |
|
Brokered
deposits |
|
105,156 |
|
133,567 |
|
104,926 |
|
84,564 |
|
63,451 |
|
Total
deposits |
$ |
3,266,655 |
$ |
2,894,268 |
$ |
2,870,234 |
$ |
2,805,931 |
$ |
2,669,261 |
|
|
|
|
|
|
|
|
ANALYSIS OF BORROWINGS |
|
|
|
|
|
|
Borrowings mix: |
|
|
|
|
|
|
Term FHLB
advances |
$ |
56,600 |
$ |
58,600 |
$ |
57,000 |
$ |
59,000 |
$ |
63,000 |
|
Overnight
FHLB advances (1) |
|
135,400 |
|
110,455 |
|
49,500 |
|
47,550 |
|
74,500 |
|
Wholesale
structured repurchase agreements |
|
35,000 |
|
45,000 |
|
45,000 |
|
45,000 |
|
45,000 |
|
Customer
repurchase agreements |
|
7,003 |
|
3,671 |
|
4,897 |
|
7,170 |
|
8,132 |
|
Federal
funds purchased |
|
6,990 |
|
12,340 |
|
13,320 |
|
12,300 |
|
31,840 |
|
Junior
subordinated debentures |
|
37,486 |
|
33,579 |
|
33,546 |
|
33,514 |
|
33,480 |
|
Other
borrowings |
|
31,000 |
|
32,500 |
|
27,000 |
|
27,000 |
|
35,000 |
|
Total
borrowings |
$ |
309,479 |
$ |
296,145 |
$ |
230,263 |
$ |
231,534 |
$ |
290,952 |
|
|
|
|
|
|
|
|
(1) At the
most recent quarter-end, the weighted-average rate of these
overnight borrowings was 1.63%. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended |
|
|
|
|
|
December 31, |
|
December 31, |
|
|
|
|
|
2017 |
|
2016 |
|
|
|
|
|
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT |
|
|
|
|
|
|
Interest
income |
|
$ |
135,517 |
|
|
$ |
106,468 |
|
|
Interest
expense |
|
|
19,452 |
|
|
|
11,951 |
|
|
Net
interest income |
|
|
116,065 |
|
|
|
94,517 |
|
|
Provision
for loan/lease losses |
|
|
8,470 |
|
|
|
7,478 |
|
|
Net
interest income after provision for loan/lease losses |
|
$ |
107,595 |
|
|
$ |
87,039 |
|
|
|
|
|
|
|
|
|
|
Trust
department fees |
|
$ |
7,188 |
|
|
$ |
6,164 |
|
|
Investment
advisory and management fees |
|
|
3,870 |
|
|
|
2,993 |
|
|
Deposit
service fees |
|
|
5,919 |
|
|
|
4,440 |
|
|
Gain on
sales of residential real estate loans |
|
|
409 |
|
|
|
431 |
|
|
Gain on
sales of government guaranteed portions of loans |
|
|
1,164 |
|
|
|
3,159 |
|
|
Swap fee
income |
|
|
3,095 |
|
|
|
1,708 |
|
|
Securities
gains (losses), net |
|
|
(88 |
) |
|
|
4,592 |
|
|
Earnings on
bank-owned life insurance |
|
|
1,802 |
|
|
|
1,771 |
|
|
Debit card
fees |
|
|
2,942 |
|
|
|
1,815 |
|
|
Correspondent banking fees |
|
|
916 |
|
|
|
1,050 |
|
|
Other |
|
|
|
3,265 |
|
|
|
2,914 |
|
|
Total noninterest income |
|
$ |
30,482 |
|
|
$ |
31,037 |
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
$ |
55,722 |
|
|
$ |
46,317 |
|
|
Occupancy
and equipment expense |
|
|
10,938 |
|
|
|
8,405 |
|
|
Professional and data processing fees |
|
|
10,757 |
|
|
|
7,113 |
|
|
Acquisition
costs |
|
|
1,069 |
|
|
|
1,400 |
|
|
Post-acquisition compensation, transition and integration
costs |
|
|
4,310 |
|
|
|
1,041 |
|
|
FDIC
insurance, other insurance and regulatory fees |
|
|
2,752 |
|
|
|
2,549 |
|
|
Loan/lease
expense |
|
|
1,164 |
|
|
|
662 |
|
|
Net cost of
operation of other real estate |
|
|
2 |
|
|
|
591 |
|
|
Advertising
and marketing |
|
|
2,625 |
|
|
|
2,128 |
|
|
Bank
service charges |
|
|
1,771 |
|
|
|
1,693 |
|
|
Losses on
debt extinguishment, net |
|
|
- |
|
|
|
4,578 |
|
|
Correspondent banking expense |
|
|
807 |
|
|
|
751 |
|
|
CDI
amortization |
|
|
1,001 |
|
|
|
443 |
|
|
Other |
|
|
|
4,506 |
|
|
|
3,815 |
|
|
Total noninterest expense |
|
$ |
97,424 |
|
|
$ |
81,486 |
|
|
|
|
|
|
|
|
|
|
Net
income before taxes |
|
$ |
40,653 |
|
|
$ |
36,590 |
|
|
Income tax
expense |
|
|
4,946 |
|
|
|
8,903 |
|
|
Net
income |
|
|
$ |
35,707 |
|
|
$ |
27,687 |
|
|
|
|
|
|
|
|
|
|
Basic EPS |
|
$ |
2.68 |
|
|
$ |
2.20 |
|
|
Diluted EPS |
|
$ |
2.61 |
|
|
$ |
2.17 |
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
|
13,325,128 |
|
|
|
12,570,767 |
|
|
Weighted
average common and common equivalent shares outstanding |
|
|
13,680,472 |
|
|
|
12,766,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
|
|
2017 |
2017 |
2017 |
2017 |
2016 |
|
|
|
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
INCOME STATEMENT |
|
|
|
|
|
|
Interest
income |
|
$ |
37,878 |
|
$ |
33,841 |
|
$ |
32,453 |
$ |
31,345 |
$ |
32,236 |
|
Interest
expense |
|
|
6,085 |
|
|
5,285 |
|
|
4,406 |
|
3,676 |
|
2,956 |
|
Net
interest income |
|
|
31,793 |
|
|
28,556 |
|
|
28,047 |
|
27,669 |
|
29,280 |
|
Provision
for loan/lease losses |
|
|
2,255 |
|
|
2,087 |
|
|
2,023 |
|
2,105 |
|
2,599 |
|
Net
interest income after provision for loan/lease losses |
|
$ |
29,538 |
|
$ |
26,469 |
|
$ |
26,024 |
$ |
25,564 |
$ |
26,681 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust
department fees |
|
$ |
2,034 |
|
$ |
1,722 |
|
$ |
1,692 |
$ |
1,740 |
$ |
1,558 |
|
Investment
advisory and management fees |
|
|
1,071 |
|
|
969 |
|
|
868 |
|
962 |
|
876 |
|
Deposit
service fees |
|
|
1,622 |
|
|
1,522 |
|
|
1,459 |
|
1,316 |
|
1,411 |
|
Gain on
sales of residential real estate loans |
|
|
101 |
|
|
98 |
|
|
113 |
|
96 |
|
142 |
|
Gain on
sales of government guaranteed portions of loans |
|
|
34 |
|
|
92 |
|
|
87 |
|
951 |
|
458 |
|
Swap fee
income |
|
|
2,460 |
|
|
194 |
|
|
327 |
|
114 |
|
350 |
|
Securities
gains (losses), net |
|
|
(63 |
) |
|
(63 |
) |
|
38 |
|
- |
|
(36 |
) |
Earnings on
bank-owned life insurance |
|
|
445 |
|
|
428 |
|
|
459 |
|
470 |
|
447 |
|
Debit card
fees |
|
|
741 |
|
|
755 |
|
|
743 |
|
703 |
|
688 |
|
Correspondent banking fees |
|
|
231 |
|
|
239 |
|
|
200 |
|
245 |
|
249 |
|
Other |
|
|
|
1,038 |
|
|
746 |
|
|
796 |
|
687 |
|
886 |
|
Total noninterest income |
|
$ |
9,714 |
|
$ |
6,702 |
|
$ |
6,782 |
$ |
7,284 |
$ |
7,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries
and employee benefits |
|
$ |
16,060 |
|
$ |
13,424 |
|
$ |
12,931 |
$ |
13,307 |
$ |
13,396 |
|
Occupancy
and equipment expense |
|
|
3,221 |
|
|
2,516 |
|
|
2,699 |
|
2,502 |
|
2,630 |
|
Professional and data processing fees |
|
|
3,382 |
|
|
2,951 |
|
|
2,341 |
|
2,083 |
|
2,192 |
|
Acquisition
costs |
|
|
661 |
|
|
408 |
|
|
- |
|
- |
|
36 |
|
Post-acquisition transition and integration costs |
|
|
3,787 |
|
|
523 |
|
|
- |
|
- |
|
4 |
|
FDIC
insurance, other insurance and regulatory fees |
|
|
795 |
|
|
690 |
|
|
646 |
|
621 |
|
683 |
|
Loan/lease
expense |
|
|
352 |
|
|
257 |
|
|
260 |
|
294 |
|
242 |
|
Net cost of
operation of other real estate |
|
|
120 |
|
|
(160 |
) |
|
28 |
|
14 |
|
78 |
|
Advertising
and marketing |
|
|
778 |
|
|
670 |
|
|
568 |
|
609 |
|
760 |
|
Bank
service charges |
|
|
439 |
|
|
460 |
|
|
447 |
|
424 |
|
446 |
|
Losses on
debt extinguishment, net |
|
|
- |
|
|
- |
|
|
- |
|
- |
|
357 |
|
Correspondent banking expense |
|
|
203 |
|
|
204 |
|
|
202 |
|
198 |
|
186 |
|
CDI
amortization |
|
|
308 |
|
|
231 |
|
|
231 |
|
231 |
|
232 |
|
Other |
|
|
|
1,245 |
|
|
1,221 |
|
|
1,052 |
|
990 |
|
1,066 |
|
Total noninterest expense |
|
$ |
31,351 |
|
$ |
23,395 |
|
$ |
21,405 |
$ |
21,273 |
$ |
22,308 |
|
|
|
|
|
|
|
|
|
Net
income before taxes |
|
$ |
7,901 |
|
$ |
9,776 |
|
$ |
11,401 |
$ |
11,575 |
$ |
11,402 |
|
Income tax
expense (benefit) |
|
|
(2,001 |
) |
|
1,922 |
|
|
2,635 |
|
2,390 |
|
2,873 |
|
Net
income |
|
|
$ |
9,902 |
|
$ |
7,854 |
|
$ |
8,766 |
$ |
9,185 |
$ |
8,529 |
|
|
|
|
|
|
|
|
|
Basic EPS |
|
$ |
0.72 |
|
$ |
0.60 |
|
$ |
0.67 |
$ |
0.70 |
$ |
0.65 |
|
Diluted EPS |
|
$ |
0.70 |
|
$ |
0.58 |
|
$ |
0.65 |
$ |
0.68 |
$ |
0.64 |
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
|
13,845,497 |
|
|
13,151,350 |
|
|
13,170,283 |
|
13,133,382 |
|
13,087,592 |
|
Weighted
average common and common equivalent shares outstanding |
|
14,193,191 |
|
|
13,507,955 |
|
|
13,532,324 |
|
13,488,417 |
|
13,323,883 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
For the Year Ended |
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
December 31, |
December 31, |
|
2017 |
2017 |
2017 |
2017 |
2016 |
|
2017 |
2016 |
|
(dollars in thousands, except per share data) |
|
COMMON SHARE DATA |
|
|
|
|
|
|
|
|
Common shares
outstanding |
|
13,918,168 |
|
|
13,201,959 |
|
|
13,175,234 |
|
|
13,161,219 |
|
|
13,106,845 |
|
|
|
|
Book value per common
share (1) |
$ |
25.38 |
|
$ |
23.71 |
|
$ |
23.16 |
|
$ |
22.48 |
|
$ |
21.82 |
|
|
|
|
Tangible book value per
common share (2) |
$ |
22.70 |
|
$ |
22.21 |
|
$ |
21.64 |
|
$ |
20.94 |
|
$ |
20.11 |
|
|
|
|
Closing stock
price |
$ |
42.85 |
|
$ |
45.50 |
|
$ |
47.40 |
|
$ |
42.35 |
|
$ |
43.30 |
|
|
|
|
Market
capitalization |
$ |
596,393 |
|
$ |
600,689 |
|
$ |
624,506 |
|
$ |
557,378 |
|
$ |
567,526 |
|
|
|
|
Market price / book
value |
|
168.81 |
% |
|
191.89 |
% |
|
204.70 |
% |
|
188.41 |
% |
|
198.41 |
% |
|
|
|
Market price / tangible
book value |
|
188.81 |
% |
|
204.85 |
% |
|
219.08 |
% |
|
202.26 |
% |
|
215.36 |
% |
|
|
|
Earnings per common
share (basic) LTM (3) |
$ |
2.69 |
|
$ |
2.62 |
|
$ |
2.49 |
|
$ |
2.36 |
|
$ |
2.20 |
|
|
|
|
Price earnings ratio
LTM (3) |
15.93 x |
17.37 x |
19.11 x |
17.94 x |
19.68 x |
|
|
|
TCE / TA (4) |
|
8.01 |
% |
|
8.31 |
% |
|
8.29 |
% |
|
8.20 |
% |
|
8.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS'
EQUITY |
|
|
|
|
Beginning balance |
$ |
313,039 |
|
$ |
305,083 |
|
$ |
295,840 |
|
$ |
286,041 |
|
$ |
280,857 |
|
|
|
|
Net income |
|
9,902 |
|
|
7,854 |
|
|
8,766 |
|
|
9,185 |
|
|
8,529 |
|
|
|
|
Other comprehensive
income (loss), net of tax |
|
(295 |
) |
|
275 |
|
|
702 |
|
|
411 |
|
|
(3,681 |
) |
|
|
|
Common stock cash
dividends declared |
|
(693 |
) |
|
(658 |
) |
|
(657 |
) |
|
(657 |
) |
|
(523 |
) |
|
|
|
Proceeds from issuance
of 678,670 shares of common stock, net of costs, as a result
of the acquisition of Guaranty Bank & Trust |
|
30,741 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
Other (5) |
|
593 |
|
|
485 |
|
|
432 |
|
|
860 |
|
|
859 |
|
|
|
|
Ending balance |
$ |
353,287 |
|
$ |
313,039 |
|
$ |
305,083 |
|
$ |
295,840 |
|
$ |
286,041 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REGULATORY CAPITAL RATIOS (6): |
|
|
|
|
|
|
|
|
Total risk-based
capital ratio |
|
11.09 |
% |
|
11.49 |
% |
|
11.65 |
% |
|
11.90 |
% |
|
11.56 |
% |
|
|
|
Tier 1 risk-based
capital ratio |
|
10.09 |
% |
|
10.35 |
% |
|
10.51 |
% |
|
10.75 |
% |
|
10.46 |
% |
|
|
|
Tier 1 leverage capital
ratio |
|
9.00 |
% |
|
9.23 |
% |
|
9.34 |
% |
|
9.37 |
% |
|
9.10 |
% |
|
|
|
Common equity tier 1
ratio |
|
9.06 |
% |
|
9.33 |
% |
|
9.46 |
% |
|
9.64 |
% |
|
9.41 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY PERFORMANCE RATIOS AND OTHER METRICS |
|
|
|
|
|
|
|
|
Return on average
assets (annualized) |
|
1.01 |
% |
|
0.90 |
% |
|
1.04 |
% |
|
1.12 |
% |
|
1.04 |
% |
|
|
1.01 |
% |
|
0.97 |
% |
Return on average total
equity (annualized) |
|
11.67 |
% |
|
10.15 |
% |
|
11.65 |
% |
|
12.63 |
% |
|
12.04 |
% |
|
|
11.51 |
% |
|
10.56 |
% |
Net interest
margin |
|
3.41 |
% |
|
3.43 |
% |
|
3.54 |
% |
|
3.65 |
% |
|
3.80 |
% |
|
|
3.50 |
% |
|
3.53 |
% |
Net interest margin
(TEY) (Non-GAAP)(7) |
|
3.69 |
% |
|
3.71 |
% |
|
3.81 |
% |
|
3.90 |
% |
|
4.02 |
% |
|
|
3.78 |
% |
|
3.75 |
% |
Efficiency ratio
(Non-GAAP) (8) (12) |
|
75.53 |
% |
|
66.35 |
% |
|
61.46 |
% |
|
60.86 |
% |
|
61.44 |
% |
|
|
66.48 |
% |
|
64.90 |
% |
Gross loans and leases
/ total assets |
|
74.43 |
% |
|
75.39 |
% |
|
73.86 |
% |
|
72.04 |
% |
|
72.85 |
% |
|
|
74.43 |
% |
|
72.85 |
% |
Effective tax rate
(11) |
|
-25.33 |
% |
|
19.66 |
% |
|
23.11 |
% |
|
20.65 |
% |
|
25.20 |
% |
|
|
12.17 |
% |
|
24.33 |
% |
Tax
benefit related to stock options exercised and restricted stock
awards vested (9) |
|
406 |
|
|
191 |
|
|
90 |
|
|
533 |
|
|
N/A |
|
|
|
1,220 |
|
|
N/A |
|
Full-time equivalent
employees (10) |
|
641 |
|
|
580 |
|
|
585 |
|
|
561 |
|
|
572 |
|
|
|
641 |
|
|
572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
Assets |
$ |
3,923,337 |
|
$ |
3,503,148 |
|
$ |
3,378,195 |
|
$ |
3,274,713 |
|
$ |
3,277,814 |
|
|
$ |
3,519,848 |
|
$ |
2,846,697 |
|
Loans/leases |
|
2,930,711 |
|
|
2,629,626 |
|
|
2,488,828 |
|
|
2,398,387 |
|
|
2,358,960 |
|
|
|
2,611,888 |
|
|
2,042,555 |
|
Deposits |
|
3,256,481 |
|
|
2,882,106 |
|
|
2,835,711 |
|
|
2,692,009 |
|
|
2,717,923 |
|
|
|
2,916,577 |
|
|
2,243,623 |
|
Total stockholders'
equity |
|
339,468 |
|
|
309,596 |
|
|
300,868 |
|
|
290,906 |
|
|
283,292 |
|
|
|
310,210 |
|
|
262,075 |
|
|
|
|
|
|
|
|
|
|
(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) ASC 2016-09 became effective on January 1, 2017 and
affects the accounting for stock compensation. This amount
reflects the tax benefit recognized as a result of this new
standard. |
(10) Full-time equivalent employees increased in the 4th
quarter of 2017 due to the acquisition of Guaranty, as well as the
filling of open positions throughout the Company. |
(11) The effective tax rate for the fourth quarter of 2017 and
the full year were impacted by a $2.9 million tax benefit recorded
as a result of the Tax Act. |
(12) The efficiency ratio was unusually high in the fourth
quarter of 2017 due to one-time acquisition costs and
post-acquisition transition and integration costs totaling $4.4
million. |
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF NET INTEREST INCOME AND
MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
December 31, 2017 |
|
September 30, 2017 |
|
December 31, 2016 |
|
|
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 |
|
$ |
20,509 |
$ |
45 |
0.87 |
% |
|
$ |
19,966 |
$ |
52 |
1.03 |
% |
|
$ |
11,475 |
$ |
9 |
0.31 |
% |
Interest-bearing deposits at financial institutions |
|
94,404 |
|
314 |
1.32 |
% |
|
|
42,178 |
|
141 |
1.33 |
% |
|
|
123,838 |
|
167 |
0.54 |
% |
Securities (1) |
|
|
635,389 |
|
6,111 |
3.82 |
% |
|
|
593,451 |
|
5,808 |
3.88 |
% |
|
|
562,164 |
|
4,970 |
3.52 |
% |
Restricted
investment securities |
|
18,180 |
|
196 |
4.28 |
% |
|
|
17,793 |
|
173 |
3.86 |
% |
|
|
12,785 |
|
126 |
3.92 |
% |
Loans (1) |
|
|
2,930,711 |
|
33,797 |
4.58 |
% |
|
|
2,629,626 |
|
29,978 |
4.52 |
% |
|
|
2,358,960 |
|
28,691 |
4.84 |
% |
Total earning assets (1) |
$ |
3,699,193 |
$ |
40,463 |
4.34 |
% |
|
$ |
3,303,014 |
$ |
36,152 |
4.34 |
% |
|
$ |
3,069,222 |
$ |
33,963 |
4.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,903,983 |
$ |
2,787 |
0.58 |
% |
|
$ |
1,613,162 |
$ |
2,230 |
0.55 |
% |
|
$ |
1,387,319 |
$ |
928 |
0.27 |
% |
Time deposits |
|
|
546,376 |
|
1,445 |
1.05 |
% |
|
|
530,120 |
|
1,326 |
0.99 |
% |
|
|
496,855 |
|
984 |
0.79 |
% |
Short-term
borrowings |
|
31,120 |
|
38 |
0.48 |
% |
|
|
16,138 |
|
33 |
0.81 |
% |
|
|
36,728 |
|
20 |
0.22 |
% |
Federal
Home Loan Bank advances (4) |
|
143,171 |
|
616 |
1.71 |
% |
|
|
146,556 |
|
608 |
1.65 |
% |
|
|
83,231 |
|
6 |
0.03 |
% |
Other borrowings |
|
|
74,199 |
|
775 |
4.14 |
% |
|
|
72,617 |
|
726 |
3.97 |
% |
|
|
73,816 |
|
693 |
3.73 |
% |
Junior
subordinated debentures |
|
35,531 |
|
424 |
4.73 |
% |
|
|
33,563 |
|
362 |
4.28 |
% |
|
|
33,463 |
|
325 |
3.86 |
% |
Total interest-bearing liabilities |
$ |
2,734,380 |
$ |
6,085 |
0.88 |
% |
|
$ |
2,412,156 |
$ |
5,285 |
0.87 |
% |
|
$ |
2,111,412 |
$ |
2,956 |
0.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income / spread (1) |
|
$ |
34,378 |
3.46 |
% |
|
|
$ |
30,867 |
3.47 |
% |
|
|
$ |
31,007 |
3.84 |
% |
Net
interest margin (2) |
|
|
3.41 |
% |
|
|
|
3.43 |
% |
|
|
|
3.80 |
% |
Net
interest margin (TEY) (Non-GAAP) (1) (2) (3) |
|
|
3.69 |
% |
|
|
|
3.71 |
% |
|
|
|
4.02 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended |
|
|
|
|
|
|
December 31, 2017 |
|
December 31, 2016 |
|
|
|
|
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 |
|
$ |
17,577 |
$ |
149 |
0.85 |
% |
|
$ |
15,142 |
$ |
45 |
0.30 |
% |
|
|
|
|
Interest-bearing deposits at financial institutions |
|
78,842 |
|
874 |
1.11 |
% |
|
|
70,757 |
|
393 |
0.56 |
% |
|
|
|
|
Securities (1) |
|
|
590,761 |
|
22,460 |
3.80 |
% |
|
|
535,912 |
|
19,054 |
3.56 |
% |
|
|
|
|
Restricted
investment securities |
|
15,768 |
|
631 |
4.00 |
% |
|
|
13,993 |
|
522 |
3.73 |
% |
|
|
|
|
Loans (1) |
|
|
2,611,888 |
|
120,618 |
4.62 |
% |
|
|
2,042,555 |
|
92,475 |
4.53 |
% |
|
|
|
|
Total earning assets (1) |
$ |
3,314,836 |
$ |
144,732 |
4.37 |
% |
|
$ |
2,678,359 |
$ |
112,489 |
4.20 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
1,622,724 |
$ |
7,992 |
0.49 |
% |
|
$ |
1,092,687 |
$ |
3,843 |
0.35 |
% |
|
|
|
|
Time deposits |
|
|
528,834 |
|
5,020 |
0.95 |
% |
|
|
436,070 |
|
2,175 |
0.50 |
% |
|
|
|
|
Short-term
borrowings |
|
22,596 |
|
114 |
0.50 |
% |
|
|
50,899 |
|
94 |
0.18 |
% |
|
|
|
|
Federal
Home Loan Bank advances (4) |
|
120,206 |
|
1,981 |
1.65 |
% |
|
|
114,797 |
|
1,284 |
1.12 |
% |
|
|
|
|
Other borrowings |
|
|
73,394 |
|
2,879 |
3.92 |
% |
|
|
98,105 |
|
3,318 |
3.38 |
% |
|
|
|
|
Junior
subordinated debentures |
|
34,030 |
|
1,466 |
4.31 |
% |
|
|
33,735 |
|
1,237 |
3.67 |
% |
|
|
|
|
Total interest-bearing liabilities |
$ |
2,401,784 |
$ |
19,452 |
0.81 |
% |
|
$ |
1,826,293 |
$ |
11,951 |
0.65 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest income / spread (1) |
|
$ |
125,280 |
3.56 |
% |
|
|
$ |
100,538 |
3.55 |
% |
|
|
|
|
Net
interest margin (2) |
|
|
3.50 |
% |
|
|
|
3.53 |
% |
|
|
|
|
Net
interest margin (TEY) (Non-GAAP) (1) (2) (3) |
|
|
3.78 |
% |
|
|
|
3.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
nontaxable securities and loans. Interest earned and yields
on nontaxable securities and loans are determined on a tax
equivalent basis using a 35% tax rate for each period
presented. |
(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. |
(4) Average
cost of Federal Home Loan Bank advances for the quarter and year
ending December 31, 2016 was affected by the acceleration of the
premium on advances recognized at the acquisition of
CSB. $342 thousand was accelerated due to the prepayment of
$15.0 million of advances in the fourth quarter of 2016. |
|
|
|
|
|
As of |
|
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
|
2017 |
2017 |
2017 |
2017 |
2016 |
|
|
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE
LOSSES |
|
|
|
|
|
|
Beginning balance |
$ |
34,982 |
|
$ |
33,357 |
|
$ |
32,059 |
|
$ |
30,757 |
|
$ |
28,827 |
|
|
Provision charged to
expense |
|
2,255 |
|
|
2,087 |
|
|
2,023 |
|
|
2,105 |
|
|
2,599 |
|
|
Loans/leases charged
off |
|
(2,979 |
) |
|
(650 |
) |
|
(851 |
) |
|
(893 |
) |
|
(755 |
) |
|
Recoveries on
loans/leases previously charged off |
|
98 |
|
|
188 |
|
|
126 |
|
|
90 |
|
|
86 |
|
|
Ending
balance |
$ |
34,356 |
|
$ |
34,982 |
|
$ |
33,357 |
|
$ |
32,059 |
|
$ |
30,757 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONPERFORMING ASSETS |
|
|
|
|
|
|
Nonaccrual
loans/leases |
$ |
11,441 |
|
$ |
20,443 |
|
$ |
13,217 |
|
$ |
14,205 |
|
$ |
13,919 |
|
|
Accruing loans/leases
past due 90 days or more |
|
89 |
|
|
423 |
|
|
424 |
|
|
955 |
|
|
967 |
|
|
Troubled debt
restructures - accruing |
|
7,113 |
|
|
7,563 |
|
|
6,915 |
|
|
6,229 |
|
|
6,347 |
|
|
Total
nonperforming loans/leases |
|
18,643 |
|
|
28,429 |
|
|
20,556 |
|
|
21,389 |
|
|
21,233 |
|
|
Other real estate
owned |
|
13,558 |
|
|
5,135 |
|
|
5,174 |
|
|
5,625 |
|
|
5,523 |
|
|
Other repossessed
assets |
|
80 |
|
|
120 |
|
|
123 |
|
|
285 |
|
|
202 |
|
|
Total nonperforming assets |
$ |
32,281 |
|
$ |
33,684 |
|
$ |
25,853 |
|
$ |
27,299 |
|
$ |
26,958 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY RATIOS |
|
|
|
|
|
|
Nonperforming assets /
total assets |
|
0.81 |
% |
|
0.95 |
% |
|
0.75 |
% |
|
0.81 |
% |
|
0.82 |
% |
|
Allowance / total
loans/leases (1) |
|
1.16 |
% |
|
1.31 |
% |
|
1.31 |
% |
|
1.32 |
% |
|
1.28 |
% |
|
Allowance /
nonperforming loans/leases (1) |
|
184.28 |
% |
|
123.05 |
% |
|
162.27 |
% |
|
149.89 |
% |
|
144.85 |
% |
|
Net charge-offs as a %
of average loans/leases |
|
0.10 |
% |
|
0.02 |
% |
|
0.03 |
% |
|
0.03 |
% |
|
0.03 |
% |
|
|
|
|
|
|
|
|
(1) Upon acquisition and per GAAP, acquired loans are recorded
at market value which eliminated the allowance and impacts these
ratios. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
For the Year Ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
SELECT FINANCIAL DATA - SUBSIDIARIES |
|
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and
Trust (1) |
|
$ |
1,541,778 |
|
|
$ |
1,456,251 |
|
|
$ |
1,395,785 |
|
|
|
|
|
|
m2 Lease
Funds, LLC |
|
|
218,035 |
|
|
|
216,997 |
|
|
|
213,159 |
|
|
|
|
|
|
Cedar Rapids Bank and
Trust |
|
|
1,307,377 |
|
|
|
1,007,062 |
|
|
|
913,056 |
|
|
|
|
|
|
Community State Bank -
Ankeny |
|
|
670,516 |
|
|
|
631,963 |
|
|
|
600,076 |
|
|
|
|
|
|
Rockford Bank and
Trust |
|
|
461,651 |
|
|
|
445,099 |
|
|
|
391,155 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL DEPOSITS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and
Trust (1) |
|
$ |
1,272,111 |
|
|
$ |
1,164,828 |
|
|
$ |
1,125,932 |
|
|
|
|
|
|
Cedar Rapids Bank and
Trust |
|
|
1,060,139 |
|
|
|
845,576 |
|
|
|
747,785 |
|
|
|
|
|
|
Community State Bank -
Ankeny |
|
|
570,620 |
|
|
|
547,915 |
|
|
|
513,588 |
|
|
|
|
|
|
Rockford Bank and
Trust |
|
|
382,002 |
|
|
|
358,940 |
|
|
|
311,556 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LOANS & LEASES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and
Trust (1) |
|
$ |
1,136,753 |
|
|
$ |
1,111,964 |
|
|
$ |
1,010,443 |
|
|
|
|
|
|
m2 Lease
Funds, LLC |
|
|
215,236 |
|
|
|
214,959 |
|
|
|
211,045 |
|
|
|
|
|
|
Cedar Rapids Bank and
Trust |
|
|
973,971 |
|
|
|
755,817 |
|
|
|
652,212 |
|
|
|
|
|
|
Community State Bank -
Ankeny |
|
|
489,075 |
|
|
|
453,898 |
|
|
|
429,511 |
|
|
|
|
|
|
Rockford Bank and
Trust |
|
|
364,686 |
|
|
|
355,075 |
|
|
|
313,321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LOANS & LEASES / TOTAL ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and
Trust (1) |
|
|
74 |
% |
|
|
76 |
% |
|
|
72 |
% |
|
|
|
|
|
Cedar Rapids Bank and
Trust |
|
|
74 |
% |
|
|
75 |
% |
|
|
71 |
% |
|
|
|
|
|
Community State Bank -
Ankeny |
|
|
73 |
% |
|
|
72 |
% |
|
|
72 |
% |
|
|
|
|
|
Rockford Bank and
Trust |
|
|
79 |
% |
|
|
80 |
% |
|
|
80 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and
Trust (1) |
|
|
1.11 |
% |
|
|
1.28 |
% |
|
|
1.33 |
% |
|
|
|
|
|
m2 Lease
Funds, LLC |
|
|
1.54 |
% |
|
|
1.68 |
% |
|
|
1.78 |
% |
|
|
|
|
|
Cedar Rapids Bank and
Trust (2) |
|
|
1.22 |
% |
|
|
1.55 |
% |
|
|
1.67 |
% |
|
|
|
|
|
Community State Bank -
Ankeny (2) |
|
|
0.89 |
% |
|
|
0.82 |
% |
|
|
0.34 |
% |
|
|
|
|
|
Rockford Bank and
Trust |
|
|
1.51 |
% |
|
|
1.52 |
% |
|
|
1.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETURN ON AVERAGE ASSETS (8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and
Trust (1) |
|
|
2.82 |
% |
|
|
1.19 |
% |
|
|
1.17 |
% |
|
|
1.65 |
% |
|
|
1.12 |
% |
|
Cedar Rapids Bank and
Trust |
|
|
0.71 |
% |
|
|
1.30 |
% |
|
|
1.34 |
% |
|
|
1.12 |
% |
|
|
1.42 |
% |
|
Community State Bank -
Ankeny (3) |
|
|
0.96 |
% |
|
|
1.04 |
% |
|
|
1.33 |
% |
|
|
1.14 |
% |
|
|
1.10 |
% |
|
Rockford Bank and
Trust |
|
|
0.26 |
% |
|
|
0.67 |
% |
|
|
0.90 |
% |
|
|
0.64 |
% |
|
|
0.84 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN PERCENTAGE (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and
Trust (1) |
|
|
3.49 |
% |
|
|
3.60 |
% |
|
|
3.71 |
% |
|
|
3.61 |
% |
|
|
3.65 |
% |
|
Cedar Rapids Bank and
Trust (6) |
|
|
3.80 |
% |
|
|
3.72 |
% |
|
|
3.90 |
% |
|
|
3.74 |
% |
|
|
3.87 |
% |
|
Community State Bank -
Ankeny (5) |
|
|
4.71 |
% |
|
|
4.54 |
% |
|
|
6.00 |
% |
|
|
4.91 |
% |
|
|
5.74 |
% |
|
Rockford Bank and
Trust |
|
|
3.32 |
% |
|
|
3.35 |
% |
|
|
3.35 |
% |
|
|
3.37 |
% |
|
|
3.47 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN
NET |
|
|
|
|
|
|
|
|
|
|
|
INTEREST MARGIN, NET |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cedar Rapids Bank and
Trust |
|
$ |
221 |
|
|
$ |
(7 |
) |
|
$ |
313 |
|
|
$ |
200 |
|
|
$ |
673 |
|
|
Community State Bank -
Ankeny |
|
|
575 |
|
|
|
513 |
|
|
|
2,681 |
|
|
|
4,723 |
|
|
|
3,154 |
|
|
QCR Holdings, Inc.
(7) |
|
|
(51 |
) |
|
|
(32 |
) |
|
|
(34 |
) |
|
|
(149 |
) |
|
|
(136 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Quad City
Bank and Trust figures include m2 Lease Funds, LLC, as this entity
is wholly-owned and consolidated with the Bank. m2 Lease
Funds, LLC is also presented separately for certain
(applicable) measurements. |
(2 |
) |
Upon
acquisition and per GAAP, acquired loans are recorded at market
value, which eliminated the allowance and impacts this
ratio. |
(3 |
) |
Community
State Bank's return on average assets for the 4th quarter of 2017
includes $753 thousand (after-tax) of conversion costs. |
(4 |
) |
Includes
nontaxable securities and loans. Interest earned and yields
on nontaxable securities and loans are determined on a tax
equivalent basis using a 35% tax rate for each period
presented. |
(5 |
) |
Community
State Bank's net interest margin percentage includes various
purchase accounting adjustments. Excluding those adjustments,
net interest margin would have been 4.33% for the quarter
ended December 31, 2017, 4.21% for the quarter ended September 30,
2017 and 3.99% for the quarter ended December 31, 2016. |
(6 |
) |
Cedar Rapids
Bank and Trust's net interest margin percentage includes various
purchase accounting adjustments. Excluding those adjustments,
net interest margin would have been 3.71% for the quarter
ended December 31, 2017, 3.72% for the quarter ended September 30,
2017 and 3.75% for the quarter ended December 31, 2016. |
(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. |
(8 |
) |
Return on
average assets for all entities was impacted in the fourth quarter
of 2017 by the adjustments to deferred tax assets, as a result of
the Tax Act. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
|
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
|
GAAP TO NON-GAAP RECONCILIATIONS |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
|
|
|
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (GAAP) |
|
$ |
353,287 |
|
|
$ |
313,039 |
|
|
$ |
305,083 |
|
|
$ |
295,840 |
|
|
$ |
286,041 |
|
|
|
|
|
Less:
Intangible assets |
|
|
37,413 |
|
|
|
19,800 |
|
|
|
20,030 |
|
|
|
20,261 |
|
|
|
22,522 |
|
|
|
|
|
Tangible
common equity (non-GAAP) |
|
$ |
315,874 |
|
|
$ |
293,239 |
|
|
$ |
285,053 |
|
|
$ |
275,579 |
|
|
$ |
263,519 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets (GAAP) |
|
$ |
3,982,665 |
|
|
$ |
3,550,463 |
|
|
$ |
3,457,187 |
|
|
$ |
3,381,013 |
|
|
$ |
3,301,944 |
|
|
|
|
|
Less:
Intangible assets |
|
|
37,413 |
|
|
|
19,800 |
|
|
|
20,030 |
|
|
|
20,261 |
|
|
|
22,522 |
|
|
|
|
|
Tangible
assets (non-GAAP) |
|
$ |
3,945,252 |
|
|
$ |
3,530,663 |
|
|
$ |
3,437,157 |
|
|
$ |
3,360,752 |
|
|
$ |
3,279,422 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common
equity to tangible assets ratio (non-GAAP) |
|
|
8.01 |
% |
|
|
8.31 |
% |
|
|
8.29 |
% |
|
|
8.20 |
% |
|
|
8.04 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
For the Year Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
CORE NET INCOME (2) |
|
2017 |
|
2017 |
|
2017 |
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (GAAP) |
|
$ |
9,902 |
|
|
$ |
7,854 |
|
|
$ |
8,766 |
|
|
$ |
9,185 |
|
|
$ |
8,529 |
|
|
$ |
35,707 |
|
|
$ |
27,687 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less
nonrecurring items (post-tax) (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities gains, net |
|
$ |
(41 |
) |
|
$ |
(41 |
) |
|
$ |
25 |
|
|
$ |
- |
|
|
$ |
(23 |
) |
|
$ |
(57 |
) |
|
$ |
2,985 |
|
Total
nonrecurring income (non-GAAP) |
|
$ |
(41 |
) |
|
$ |
(41 |
) |
|
$ |
25 |
|
|
$ |
- |
|
|
$ |
(23 |
) |
|
$ |
(57 |
) |
|
$ |
2,985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Losses on
debt extinguishment, net |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
232 |
|
|
$ |
- |
|
|
$ |
2,975 |
|
Acquisition costs (4) |
|
|
430 |
|
|
|
265 |
|
|
|
- |
|
|
|
- |
|
|
|
23 |
|
|
|
695 |
|
|
|
1,086 |
|
Post-acquisition compensation, transition and integration
costs |
|
2,462 |
|
|
|
340 |
|
|
|
- |
|
|
|
- |
|
|
|
3 |
|
|
|
2,802 |
|
|
|
677 |
|
Total
nonrecurring expense (non-GAAP) |
|
$ |
2,892 |
|
|
$ |
605 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
258 |
|
|
$ |
3,497 |
|
|
$ |
4,738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustment of tax expense related to the Tax Act |
|
$ |
2,919 |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
2,919 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net income
attributable to QCR Holdings, Inc. common stockholders (non-GAAP)
(2) |
|
$ |
9,916 |
|
|
$ |
8,500 |
|
|
$ |
8,741 |
|
|
$ |
9,185 |
|
|
$ |
8,810 |
|
|
$ |
36,342 |
|
|
$ |
29,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORE EARNINGS PER COMMON SHARE (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net income
attributable to QCR Holdings, Inc. common stockholders (non-GAAP)
(from above) |
|
$ |
9,916 |
|
|
$ |
8,500 |
|
|
$ |
8,741 |
|
|
$ |
9,185 |
|
|
$ |
8,810 |
|
|
$ |
36,342 |
|
|
$ |
29,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding |
|
|
13,845,497 |
|
|
|
13,151,350 |
|
|
|
13,170,283 |
|
|
|
13,133,382 |
|
|
|
13,087,592 |
|
|
|
13,325,128 |
|
|
|
12,570,767 |
|
Weighted
average common and common equivalent shares outstanding |
|
14,193,191 |
|
|
|
13,507,955 |
|
|
|
13,532,324 |
|
|
|
13,488,417 |
|
|
|
13,323,883 |
|
|
|
13,680,472 |
|
|
|
12,766,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core earnings
per common share (non-GAAP): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.72 |
|
|
$ |
0.65 |
|
|
$ |
0.66 |
|
|
$ |
0.70 |
|
|
$ |
0.67 |
|
|
$ |
2.73 |
|
|
$ |
2.34 |
|
Diluted |
|
$ |
0.70 |
|
|
$ |
0.63 |
|
|
$ |
0.65 |
|
|
$ |
0.68 |
|
|
$ |
0.66 |
|
|
$ |
2.66 |
|
|
$ |
2.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CORE RETURN ON AVERAGE ASSETS (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core net income
attributable to QCR Holdings, Inc. common stockholders (non-GAAP)
(from above) |
|
$ |
9,916 |
|
|
$ |
8,500 |
|
|
$ |
8,741 |
|
|
$ |
9,185 |
|
|
$ |
8,810 |
|
|
$ |
36,342 |
|
|
$ |
29,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Assets |
|
$ |
3,923,337 |
|
|
$ |
3,503,148 |
|
|
$ |
3,378,195 |
|
|
$ |
3,274,713 |
|
|
$ |
3,277,814 |
|
|
$ |
3,519,848 |
|
|
$ |
2,846,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core return on
average assets (annualized) (non-GAAP) |
|
|
1.01 |
% |
|
|
0.97 |
% |
|
|
1.03 |
% |
|
|
1.12 |
% |
|
|
1.08 |
% |
|
|
1.03 |
% |
|
|
1.03 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN (TEY) (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP) |
|
$ |
31,793 |
|
|
$ |
28,556 |
|
|
$ |
28,047 |
|
|
$ |
27,669 |
|
|
$ |
29,280 |
|
|
$ |
116,065 |
|
|
$ |
94,517 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Plus: Tax
equivalent adjustment (5) |
|
|
2,585 |
|
|
|
2,311 |
|
|
|
2,201 |
|
|
|
1,950 |
|
|
|
1,727 |
|
|
|
9,215 |
|
|
|
6,021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income -
tax equivalent (Non-GAAP) |
|
$ |
34,378 |
|
|
$ |
30,867 |
|
|
$ |
30,248 |
|
|
$ |
29,619 |
|
|
$ |
31,007 |
|
|
$ |
125,280 |
|
|
$ |
100,538 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning
assets |
|
$ |
3,699,193 |
|
|
$ |
3,303,014 |
|
|
$ |
3,180,779 |
|
|
$ |
3,076,356 |
|
|
$ |
3,069,222 |
|
|
$ |
3,314,836 |
|
|
$ |
2,678,359 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin
(GAAP) |
|
|
3.41 |
% |
|
|
3.43 |
% |
|
|
3.54 |
% |
|
|
3.65 |
% |
|
|
3.80 |
% |
|
|
3.50 |
% |
|
|
3.53 |
% |
Net interest margin
(TEY) (Non-GAAP) |
|
|
3.69 |
% |
|
|
3.71 |
% |
|
|
3.81 |
% |
|
|
3.90 |
% |
|
|
4.02 |
% |
|
|
3.78 |
% |
|
|
3.75 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFICIENCY RATIO (7) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense
(GAAP) |
|
$ |
31,351 |
|
|
$ |
23,395 |
|
|
$ |
21,405 |
|
|
$ |
21,273 |
|
|
$ |
22,308 |
|
|
$ |
97,424 |
|
|
$ |
81,486 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
(GAAP) |
|
$ |
31,793 |
|
|
$ |
28,556 |
|
|
$ |
28,047 |
|
|
$ |
27,669 |
|
|
$ |
29,280 |
|
|
$ |
116,065 |
|
|
$ |
94,517 |
|
Noninterest income
(GAAP) |
|
|
9,714 |
|
|
|
6,702 |
|
|
|
6,782 |
|
|
|
7,284 |
|
|
|
7,029 |
|
|
|
30,482 |
|
|
|
31,037 |
|
Total
income |
|
$ |
41,507 |
|
|
$ |
35,258 |
|
|
$ |
34,829 |
|
|
$ |
34,953 |
|
|
$ |
36,309 |
|
|
$ |
146,547 |
|
|
$ |
125,554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(noninterest expense/total income) (Non-GAAP) |
|
|
75.53 |
% |
|
|
66.35 |
% |
|
|
61.46 |
% |
|
|
60.86 |
% |
|
|
61.44 |
% |
|
|
66.48 |
% |
|
|
64.90 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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) Core net income, core net income attributable to QCR
Holdings, Inc. common stockholders, core earnings per common share
and core 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. |
(3) Nonrecurring items (post-tax) are calculated using an
estimated effective tax rate of 35%. |
(4) Acquisition costs were analyzed individually for
deductibility. Presented amounts are tax-effected
accordingly. |
(5) Interest earned and yields on nontaxable securities and
loans are determined on a tax equivalent basis using a 35% tax rate
for each period presented. |
(6) 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. |
(7) 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 interst income and noninterest income,
which are the most directly comparable GAAP financial
measures. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:Todd A. GippleExecutive Vice PresidentChief Operating
OfficerChief Financial Officer(309) 743-7745
Grafico Azioni QCR (NASDAQ:QCRH)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni QCR (NASDAQ:QCRH)
Storico
Da Lug 2023 a Lug 2024