EX-99 2 qcpress200.txt PRESS RELEASE Contact: Todd A. Gipple Executive Vice President Chief Financial Officer (309) 736-3580 - Work (319) 381-3731 - Home FOR IMMEDIATE RELEASE February 12, 2001 Quad City Holdings, Inc. Announces Second Quarter Earnings Quad City Holdings, Inc. (Nasdaq SmallCap: QCHI) today announced earnings for the second fiscal quarter ended December 31, 2000 of $344,000 or basic and diluted earnings per share of $.15 and $.15, respectively. For the December 31, 1999 quarter, the Company reported earnings of $743,000 or basic and diluted earnings per share of $.32 and $.31, respectively. Earnings for the six months ended December 31, 2000 were $1.0 million, or basic and diluted earnings per share of $.44 and $.43, respectively, as compared to $1.4 million or basic and diluted earnings per share of $.60 and $.58, respectively, for the same period one year ago. The Company anticipated that a number of issues would result in a reduction in December 31, 2000 quarterly earnings as compared to the same period one year ago. The reduced earnings were due to increased overhead and one-time costs associated with the opening of its subsidiary bank's fourth full service banking facility, higher employee compensation costs resulting from the addition of four senior officer positions during calendar 2000, and a reduction in earnings of its merchant credit card processing subsidiary as a result of the planned termination of its contract with a major independent sales organization. While the addition of the new banking facility and the senior officer positions negatively impacted earnings for the three and six months ended December 31, 2000, management is confident that these additions will provide significant long-term benefits to the Company. The Company's bank subsidiary enjoyed improved core earnings for both the three and six months ended December 31, 2000. Also impacting earnings were legal costs at the Company's merchant credit card processing subsidiary associated with their current litigation with PMT Services, Inc., an increased loan loss provision due to growth in the loan portfolio and increased reserves for a few specific commercial loans, and a higher cost of funds due to competitive local market conditions. The Company's total assets increased 7% to $394.5 million from June 30, 2000 to December 31, 2000. During the same period, gross loans increased 10% to $265.6 million and total deposits increased 7% to $307.4 million. Stockholders' equity was $21.8 million at December 31, 2000 as compared with $20.1 million at June 30, 2000. Net interest income for the three months and for the six months ended December 31, 2000 was $2.9 million and $5.8 million as compared to $2.6 million and $5.3 million for the same periods one year ago. Net interest margin was 3.36% for both the three and six month periods ended December 31, 2000, as compared with 3.32% and 3.48%, respectively, for the same periods in 1999. As mentioned above, on October 30, 2000 the Company opened 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. 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. QUAD CITY HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) As of December 31, June 30, December 31, 2000 2000 1999 ------------------------------------------ (dollars in thousands, except share data) SELECTED BALANCE SHEET DATA Total assets ...................... $ 394,482 $ 367,622 $ 343,284 Securities ........................ 57,401 56,129 58,644 Total loans ....................... 265,618 241,853 211,376 Allowance for loan losses ......... 3,972 3,617 3,341 Total deposits .................... 307,422 288,067 271,767 Total stockholders' equity ........ 21,817 20,071 19,644 Common shares outstanding ......... 2,265,420 2,283,920 2,322,331 Book value per common share ....... $ 9.63 $ 8.79 $ 8.46 Full time equivalent employees .... 163 157 146 CAPITAL RATIOS Tier 1 leverage ................... 7.61% 8.06% 8.06% Tier 1 risk-based capital ......... 9.80% 10.39% 11.30% Total risk-based capital .......... 12.64% 13.47% 14.68% QUAD CITY HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) For the Quarter Ended December 31, June 30, December 31, 2000 2000 1999 ----------------------------------- (dollars in thousands) ANALYSIS OF LOAN DATA Net charge-offs ............................ $ 149 $ 80 $ 42 As of December 31, June 30, December 31, 2000 2000 1999 ----------------------------------- Nonaccrual loans ........................... $ 655 $ 383 $ 1,178 Accruing loans past due 90 days or more .... 1,197 353 200 Total nonperforming assets ................. 1,852 736 1,378 Loan mix: Commercial ................................. 187,017 167,683 142,236 Real estate ................................ 41,132 39,765 35,205 Installment and other consumer ............. 37,469 34,405 33,935 Total loans ................................ 265,618 241,853 211,376 QUAD CITY HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) For the Quarter Ended For the Six Months Ended December 31, December 31, 2000 1999 2000 1999 ----------------------------------------------- (dollars in thousands, except per share data) SELECTED INCOME STATEMENT DATA Interest income ............................ $ 7,265 $ 5,935 $ 14,243 $ 11,736 Interest expense ........................... 4,323 3,329 8,442 6,432 Net interest income ........................ 2,942 2,606 5,801 5,304 Provision for loan losses .................. 344 297 520 572 Noninterest income ......................... 1,415 1,624 2,787 2,996 Noninterest expense ........................ 3,466 2,728 6,544 5,501 Income tax expense ......................... 203 462 520 851 Net income ................................. 344 743 1,004 1,376 Earnings per common share (basic) .......... $ 0.15 $ 0.32 $ 0.44 $ 0.60 Earnings per common share (diluted) ........ $ 0.15 $ 0.31 $ 0.43 $ 0.58 AVERAGE BALANCES Assets ..................................... $383,659 $337,229 $376,954 $331,935 Deposits ................................... 299,110 265,141 294,348 259,417 Loans ...................................... 261,683 211,160 254,308 206,766 Earnings assets ............................ 351,066 313,545 345,835 308,571 Stockholders' equity ....................... 21,338 19,279 20,911 19,021 KEY RATIOS Return on average assets (annualized) ...... 0.36% 0.88% 0.53% 0.83% Return on average common equity (annualized) 6.45% 15.42% 9.60% 14.47% Net interest margin ........................ 3.36% 3.32% 3.36% 3.48% Efficiency ratio ........................... 79.46% 64.49% 75.97% 66.28%
QUAD CITY HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) For the Quarter Ended For the Six Months Ended December 31, December 31, ------------------------------------------------- 2000 1999 2000 1999 ------------------------------------------------- (dollars in thousands, except share data) ANALYSIS OF NONINTEREST INCOME Merchant credit card fees, net of processing costs $ 428 $ 646 $ 801 $ 1,183 Trust department fees ............................ 512 463 1,017 863 Deposit service fees ............................. 169 151 347 307 Gain on sales of loans, net ...................... 171 127 298 229 Other ............................................ 135 237 325 414 Total noninterest income ...................... 1,415 1,624 2,788 2,996 ANALYSIS OF NONINTEREST EXPENSE Salaries and employee benefits ................... $ 1,954 $ 1,585 $ 3,736 $ 3,213 Professional and data processing fees ............ 328 204 592 425 Advertising and marketing ........................ 153 104 280 187 Occupancy and equipment expense .................. 498 407 918 801 Stationery and supplies .......................... 98 79 171 161 Postage and telephone ............................ 100 100 194 182 Other ............................................ 335 249 653 532 Total noninterest expenses .................... 3,466 2,728 6,544 5,501 WEIGHTED AVERAGE SHARES Common shares outstanding (a) .................... 2,267,659 2,310,643 2,271,460 2,305,037 Incremental shares from assumed conversion: Options ...................................... 39,207 78,050 48,157 79,871 Adjusted weighted average shares (b) ............. 2,306,866 2,388,693 2,319,617 2,384,908 (a) Denominator for Basic Earnings Per Share. (b) Denominator for Diluted Earnings Per Share.