EX-99 2 qcholdprrlse.txt PRESS RELEASE Contact: Todd A. Gipple Executive Vice President Chief Financial Officer (309) 736-3580 - Work (319) 381-3731 - Home FOR IMMEDIATE RELEASE May 15, 2001 Quad City Holdings, Inc. Announces Third Quarter Earnings Quad City Holdings, Inc. (Nasdaq SmallCap: QCHI) today announced earnings for the third fiscal quarter ended March 31, 2001 of $623,000 or basic and diluted earnings per share of $.28 and $.27, respectively. For the March 31, 2000 quarter, the Company reported earnings of $760,000 or basic and diluted earnings per share of $.33 and $.32, respectively. Earnings for the nine months ended March 31, 2001 were $1.6 million, or basic and diluted earnings per share of $.72 and $.70, respectively, as compared to $2.1 million or basic and diluted earnings per share of $.92 and $.90, respectively, for the same period one year ago. The reduction in earnings for both the quarter and nine months ended March 31, 2001, as compared to the same periods one year ago, was the result of several factors. These factors included the opening of the Company's fourth full-service banking facility on Utica Ridge Road in Davenport and a reduction in processing volumes and profitability at Quad City Bancard. The Company's total assets increased by $39.1 million or 11% to $406.7 million at March 31, 2001 from $367.6 million at June 30, 2000. During the same period, gross loans increased by $35.6 million or 15% to $277.5 million from $241.9 million at June 30, 2000. Total deposits increased 7% to $309.1 million at March 31, 2001 from $288.1 million at June 30, 2000. Stockholders' equity was $23.1 million at March 31, 2001 as compared to $20.1 million at June 30, 2000. Net interest income for the three and nine months ended March 31, 2001 was $3.0 million and $8.8 million as compared to $2.7 million and $8.0 million, respectively, for the same periods one year ago. For the three and nine month periods ended March 31, 2001, net interest margin was 3.29% and 3.33%, respectively, as compared to 3.45% and 3.48%, respectively, for the same periods in 2000. In April 2001, the Company announced plans to expand its banking operations to the Cedar Rapids, Iowa market. Initially, the Cedar Rapids operation will function as a branch of Quad City Bank & Trust Company subject to regulatory approvals that are expected in May 2001. The Company has filed regulatory applications to establish a separately chartered bank in the Cedar Rapids market, to be called Cedar Rapids Bank and Trust Company. The Company expects to transfer the branch operations into this new charter upon receiving regulatory approval, likely in the fall of 2001. The Company plans to raise additional equity capital in the amount of approximately $5 million, through a private placement of common stock, during the summer of 2001 to help capitalize the new bank. "Clearly, Cedar Rapids is one of the strongest business markets in the State of Iowa, yet the community currently lacks a locally managed community oriented bank with a focus on commercial banking. With the talented group of local bankers who will manage Cedar Rapids Bank and Trust Company, and their local board of directors, we have the winning combination to capitalize on the opportunity to fill this niche in Cedar Rapids." said Doug Hultquist, President and Chief Executive Officer. Todd Gipple, Executive Vice President and Chief Financial Officer added, "Cedar Rapids Bank and Trust Company will utilize many of our established administrative and support functions. This existing infrastructure will enable us to efficiently provide support services and allow the Cedar Rapids team to focus on rapid growth and providing the highest levels of customer service in their market." "In addition, leveraging these existing administrative and support resources over the expanded banking operations should allow Cedar Rapids Bank and Trust Company to become profitable much more quickly than the typical de novo bank. Historically, de novo banks achieve profitability by the end of their third year of operations. Quad City Bank and Trust Company became profitable on a monthly basis in its sixteenth month of operations. We hope to meet or exceed these results with the Cedar Rapids charter." 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 March 31, June 30, March 31, 2001 2000 2000 ----------------------------------------- (dollars in thousands, except share data) SELECTED BALANCE SHEET DATA Total assets ...................... $ 406,711 $ 367,622 $ 349,352 Securities ........................ 54,761 56,129 61,593 Total loans ....................... 277,446 241,853 218,183 Allowance for loan losses ......... 4,084 3,617 3,303 Total deposits .................... 309,064 288,067 277,431 Total stockholders' equity ........ 23,079 20,071 20,136 Common shares outstanding ......... 2,265,420 2,283,920 2,325,416 Book value per common share ....... $ 10.19 $ 8.79 $ 8.66 Full time equivalent employees .... 166 157 146 CAPITAL RATIOS Tier 1 leverage ................... 7.54% 8.06% 8.13% Tier 1 risk-based capital ......... 9.78% 10.39% 11.40% Total risk-based capital .......... 12.44% 13.47% 14.66% For The Quarter Ended March 31, June 30, March 31, 2001 2000 2000 -------------------------------- (dollars in thousands) ANALYSIS OF LOAN DATA Net charge-offs ............................ $ 36 $ 80 $ 124 As of March 31, June 30, March 31, 2001 2000 2000 -------------------------------- Nonaccrual loans ........................... $ 1,161 $ 383 $ 1,216 Accruing loans past due 90 days or more .... 440 353 729 Total nonperforming assets ................. 1,601 736 1,945 Loan mix: Commercial ................................. 195,071 167,683 147,842 Real estate ................................ 45,146 39,765 38,040 Installment and other consumer ............. 37,229 34,405 32,301 Total loans ................................ 277,446 241,853 218,183 For the Quarter For the Nine Months Ended March 31, Ended March 31, 2001 2000 2001 2000 -------------------------------------------- (dollars in thousands, except per share data) SELECTED INCOME STATEMENT DATA Interest income ............................ $ 7,279 $ 5,953 $ 21,522 $ 17,688 Interest expense ........................... 4,313 3,300 12,756 9,732 Net interest income ........................ 2,966 2,653 8,766 7,956 Provision for loan losses .................. 148 85 668 657 Noninterest income ......................... 1,632 1,624 4,420 4,620 Noninterest expense ........................ 3,471 2,960 10,015 8,461 Income tax expense ......................... 356 472 876 1,323 Net income ................................. 623 760 1,627 2,135 Earnings per common share (basic) .......... $ 0.28 $ 0.33 $ 0.72 $ 0.92 Earnings per common share (diluted) ........ $ 0.27 $ 0.32 $ 0.70 $ 0.90 AVERAGE BALANCES Assets ..................................... $400,379 $343,650 $384,571 $337,733 Deposits ................................... 309,251 274,599 299,233 259,410 Loans ...................................... 271,702 208,291 260,465 207,953 Stockholders' equity ....................... 22,444 19,726 21,433 19,241 KEY RATIOS Return on average assets (annualized) ...... 0.62% 0.88% 0.56% 0.84% Return on average common equity (annualized) 11.10% 15.41% 10.12% 14.79% Net interest margin ........................ 3.29% 3.45% 3.33% 3.48% Efficiency ratio ........................... 75.47% 68.92% 75.80% 66.98%
For the Quarter Ended For the Nine Months Ended March 31, March 31, 2001 2000 2001 2000 ----------------------------------------------------- (dollars in thousands, except share data) ANALYSIS OF NONINTEREST INCOME Merchant credit card fees, net of processing costs $ 402 $ 653 $ 1,203 $ 1,836 Trust department fees ............................ 566 525 1,583 1,388 Deposit service fees ............................. 218 137 565 444 Gain on sales of loans, net ...................... 314 71 612 300 Securities gains (losses), net ................... -- 15 (23) 15 Other ............................................ 132 223 480 637 Total noninterest income ...................... 1,632 1,624 4,420 4,620 ANALYSIS OF NONINTEREST EXPENSE Salaries and employee benefits ................... $ 2,105 $ 1,806 $ 5,841 $ 5,019 Professional and data processing fees ............ 267 230 860 655 Advertising and marketing ........................ 113 117 393 304 Occupancy and equipment expense .................. 489 376 1,407 1,177 Stationery and supplies .......................... 83 83 253 244 Postage and telephone ............................ 98 84 292 266 Other ............................................ 316 264 969 796 Total noninterest expenses .................... 3,471 2,960 10,015 8,461 WEIGHTED AVERAGE SHARES Common shares outstanding (a) .................... 2,265,420 2,324,004 2,269,476 2,311,313 Incremental shares from assumed conversion: Options ...................................... 45,692 59,474 47,335 65,698 Adjusted weighted average shares (b) ............. 2,311,112 2,383,478 2,316,811 2,377,011 (a) Denominator for Basic Earnings Per Share (b) Denominator for Diluted Earnings Per Share