-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KUpNwa4aCR7/1v4bR79BHQ7Mv7Mr1VOkIbVpBtFf+65kUlJDl65Z9CyMFaW0CRUj QoS4P3nP4PKThWVxn0DOfA== /in/edgar/work/0000743530-00-000035/0000743530-00-000035.txt : 20001108 0000743530-00-000035.hdr.sgml : 20001108 ACCESSION NUMBER: 0000743530-00-000035 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20001107 ITEM INFORMATION: FILED AS OF DATE: 20001107 FILER: COMPANY DATA: COMPANY CONFORMED NAME: QUAD CITY HOLDINGS INC CENTRAL INDEX KEY: 0000906465 STANDARD INDUSTRIAL CLASSIFICATION: [6022 ] IRS NUMBER: 421397595 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-15021 FILM NUMBER: 754560 BUSINESS ADDRESS: STREET 1: 3551 7TH STREET CITY: MOLINE STATE: IL ZIP: 61265 BUSINESS PHONE: 3097363580 8-K 1 0001.txt SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report November 7, 2000 (Date of earliest event reported) Quad City Holdings, Inc. ------------------------------------------------------ (Exact name of Registrant as specified in its charter) Delaware ---------------------------------------------- (State or other jurisdiction of incorporation) 0-22208 42-1397595 - ------------------------ --------------------------------------- (Commission File Number) (I.R.S. Employer Identification Number) 3551 Seventh Street, Suite 204, Moline, Illinois 61265 - ------------------------------------------------ ---------- (Address of principal executive offices) (Zip Code) (309) 736-3580 ---------------------------------------------------- (Registrant's telephone number, including area code) Item 5. Other Events On or about November 7, 2000 Quad City Holdings, Inc. issued a letter to its shareholders, attached hereto as Exhibit 99.1, and a press release, attached hereto as Exhibit 99.2 Item 7. Financial Statements, Pro Forma Financial Information and Exhibits (a) Financial Statements of Business Acquired. ----------------------------------------- None. (b) Pro Forma Financial Information. ------------------------------- None. (c) Exhibits. -------- 99.1 - Shareholder Letter 99.2 - Press Release SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. QUAD CITY HOLDINGS, INC. Dated: November 7, 2000 By: /s/ Todd A Gipple ------------------------ Todd A. Gipple Chief Financial Officer EX-99 2 0002.txt November 2000 To: Our Stockholders As we write this quarterly letter, we are opening our newest facility on Utica Ridge Road in Davenport. This, our fourth full service facility, is not designed in the typical bank lobby fashion. The feel is more of an upscale, professional office building. We will offer all of our services from the location hoping to capture the private banking, trust, investment, commercial and mortgage lending opportunities that exist in this high growth area. We hope you have the opportunity to stop in at 5515 Utica Ridge Road, in the `Shops at Gentry Place' to see this facility and visit with our friendly staff. Our first fiscal quarter, which ended September 30, 2000, marked a quarter of strong growth as consolidated assets grew by $13 million to $381 million from $368 million at June 30, 2000. Consolidated assets were $331 million at September 30, 1999. Deposits increased by $10 million during the quarter as did loans outstanding. Our common stock repurchase program continued as we acquired an additional 12,000 shares during the quarter to bring our cumulative total to 53,000 shares. The board has authorized the repurchase of up to 60,000 shares. Basic earnings per share increased by a penny to $.29 for the quarter ended September 30, 2000 compared to $.28 per share for the quarter ended September 30, 1999. Net interest income, for the quarter ended September 30, 2000, increased by $161,000 as compared to the quarter ended September 30, 1999. While we were able to grow interest income, quarter over quarter, by almost $1.2 million, interest expense increased by slightly more than $1 million for the same periods. The marketplace for deposits became very competitive over the summer, increasing our cost of funds. We will focus on controlling this cost and also plan to increase our loan to asset ratio during the next fiscal quarters, in order to improve our net interest margin. As we have predicted, our merchant credit card fees decreased this quarter as a result of our largest sales organization commencing performance of its own processing. Our fees for this quarter decreased by $166,000 from the quarter ended September 30, 1999. Fortunately, our other fee income items increased by a like amount. As indicated in earlier correspondence and at our stockholders' meeting, this sales organization has filed a lawsuit against the Company and our subsidiary, Quad City Bancard, Inc. We continue to believe that the allegations are without merit, intend to vigorously defend the suit, and have filed motions to dismiss such litigation in California. Bancard and the Company have filed a lawsuit against the sales organization in an effort to collect a large unpaid account receivable. Salaries and benefits, our largest non-interest expense, increased by 9.4% over the prior year's quarter reflecting annual compensation adjustments granted in July and the addition of three senior positions over the past year. Advertising and marketing expense increased primarily as the result of the development and start-up of the Bank's new website (www.qcbt.com) and the establishment of an online partnership with America Online, Inc. creating local access to the website. You will note that comprehensive income rose dramatically compared to the September 30, 1999 quarter. This was due to an increase in the market value of our securities available for sale as a result of the reduction in market interest rates during the quarter. We are pleased to announce the addition of Tim Harding as Vice President of Risk Management. Included in Tim's job description will be the oversight of internal audit and regulatory compliance. He previously was a bank consultant with the accounting firm of McGladrey & Pullen, LLP. It was great to see so many of you at our recent stockholders' meeting. We appreciate your continued support. /s/ Douglas M. Hultquist /s/ Michael A. Bauer - ------------------------ -------------------- Douglas M. Hultquist Michael A. Bauer President Chairman This letter may contain forward-looking statements. Forward looking statements are identifiable by the inclusion of such qualifications as expects, intends, believes, may, likely or other indications that the particular statements are not based upon facts but are rather based upon the Company's beliefs as of the date of this release. Actual events and results may differ significantly from those described in such forward looking statements, due to changes in the economy, interest rates or other factors. For additional information about these factors, please review our filings with the Securities and Exchange Commission. EX-99 3 0003.txt PRESS RELEASE Contact: Todd A. Gipple Executive Vice President and CFO (309) 736-3580 FOR IMMEDIATE RELEASE November 2000 Quad City Holdings, Inc. Announces First Quarter Earnings Quad City Holdings, Inc. (Nasdaq SmallCap: QCHI) today announced earnings for the first fiscal quarter ending September 30, 2000 of $660,000 or basic and diluted earnings per share of $.29 and $.28 respectively. For the September 30, 1999 quarter, the Company reported earnings of $633,000, or basic and diluted earnings per share of $.28 and $.26 respectively. The Company's total assets increased 4% to $381.0 million from June 30, 2000 to September 30, 2000. During the same period, gross loans increased 4% to $251.8 million and total deposits increased 3% to $298.1 million. Stockholders' equity was $21.0 million at September 30, 2000 as compared with $20.1 million at June 30, 2000. Net interest income for the three months ended September 30, 2000 was $2.9 million as compared to $2.7 million for the same period one year ago. The net interest margin was 3.36% for the three-month period ended September 30, 2000 as compared with 3.56% for the same period in 1999. The Company is preparing for the scheduled opening of its fourth full service banking facility located at 5515 Utica Ridge Road, Davenport, Iowa. The facility will allow the Company to better serve its Northeast Davenport and Bettendorf customers while aggressively pursuing new relationships. The office is scheduled to open October 30, 2000. Quad City Holdings, Inc., headquartered in Moline, Illinois, is a bank holding company which serves the Quad City area via its wholly owned subsidiary, Quad City Bank and Trust Company, based in Bettendorf, Iowa. Quad City Bank and Trust Company, which commenced operations in 1994, provides full-service commercial and consumer banking, and trust and asset management services. The company also engages in merchant credit card processing through its wholly owned subsidiary, Quad City Bancard, Inc., based in Moline, Illinois. This release may contain forward-looking statements. Forward looking statements are identifiable by the inclusion of such qualifications as expects, intends, believes, may, likely or other indications that the particular statements are not based upon facts but are rather based upon the Company's beliefs as of the date of this release. Actual events and results may differ significantly from those described in such forward looking statements, due to changes in the economy, interest rates or other factors. For additional information about these factors, please review our filings with the Securities and Exchange Commission. As of September 30, June 30, September 30, 2000 2000 1999 - -------------------------------------------------------------------------------- (dollars in thousands, except share data) SELECTED BALANCE SHEET DATA Total assets ......................... 380,976 367,622 331,175 Securities ........................... 55,548 56,129 55,965 Total loans .......................... 251,782 241,853 210,944 Allowance for loan losses ............ 3,778 3,617 3,086 Total deposits ....................... 298,119 288,067 258,516 Total stockholders' equity ........... 20,992 20,071 18,880 Common stock outstanding ............. 2,272,420 2,283,920 2,300,001 Book value per common share .......... $ 9.24 $ 8.79 $ 8.21 Full time equivalent employees ....... 156 157 152 CAPITAL RATIOS Tier 1 leverage ...................... 7.77% 8.06% 7.89% Tier 1 risk-based capital ............ 10.16% 10.39% 10.91% Total risk-based capital ............. 13.10% 13.47% 14.48% For the Quarter Ended September 30, --------------------- 2000 1999 --------------------- (dollars in thousands) ANALYSIS OF LOAN DATA Net charge-offs .................................... 16 84 Nonaccrual loans ................................... 334 1,209 Accruing loans past due 90 days or more ............ 802 275 Other real estate owned ............................ 0 0 Total nonperforming assets ......................... 1,136 1,484 Loan mix: Commercial ......................................... 177,217 143,897 Real estate ........................................ 39,799 35,235 Installment and other consumer ..................... 34,766 31,812 Total loans ........................................ 251,782 210,944 For the Quarter Ended September 30, ---------------------- 2000 1999 ---------------------- (dollars in thousands, except per share data) SELECTED INCOME STATEMENT DATA Interest income .................................. 6,978 5,801 Interest expense ................................. 4,119 3,103 Net interest income .............................. 2,859 2,698 Provision for loan losses ........................ 176 275 Noninterest income ............................... 1,372 1,372 Noninterest expense .............................. 3,078 2,773 Income tax expense ............................... 317 389 Net income ....................................... 660 633 Earnings per common share (basic) ................ $ 0.29 $ 0.28 Earnings per common share (diluted) .............. $ 0.28 $ 0.26 AVERAGE BALANCES Assets ........................................... 371,254 328,746 Deposits ......................................... 290,126 255,726 Loans ............................................ 246,168 204,460 Earnings assets .................................. 340,604 303,543 Stockholders' equity ............................. 20,504 18,677 KEY RATIOS Return on average assets ......................... 0.71% 0.77% Return on average common equity .................. 12.88% 13.56% Net interest margin .............................. 3.36% 3.56% Efficiency ratio ................................. 72.75% 68.13% For the Quarter Ended September 30, --------------------- 2000 1999 --------------------- (dollars in thousands, except share data) ANALYSIS OF NONINTEREST INCOME Merchant credit card fees, net of processing costs ............................. 372 538 Trust department fees .......................................................... 505 400 Deposit service fees ........................................................... 178 156 Gain on sales of loans, net .................................................... 127 101 Other .......................................................................... 190 177 Total noninterest income .................................................... 1,372 1,372 ANALYSIS OF NONINTEREST EXPENSE Salaries and employee benefits ................................................. 1,782 1,628 Professional and data processing fees .......................................... 264 221 Advertising and marketing ...................................................... 127 83 Occupancy and equipment expense ................................................ 420 394 Stationery and supplies ........................................................ 72 82 Postage and telephone .......................................................... 94 82 Other .......................................................................... 319 283 Total noninterest expenses .................................................. 3,078 2,773 WEIGHTED AVERAGE SHARES Common shares outstanding (a) 2,275,261 2,299,430 Incremental shares from assumed conversion: Options .................................................................... 57,107 95,904 Warrants ................................................................... 0 4,454 Adjusted weighted avg shares (b) ............................................... 2,332,368 2,399,788 (a) Denominator for Basic Earnings Per Share (b) Denominator for Diluted Earnings Per Share
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