EX-99 3 final.txt PRESS RELEASE Contact: Todd A. Gipple Executive Vice President Chief Financial Officer (309) 736-3580 FOR IMMEDIATE RELEASE November 1, 2001 Quad City Holdings, Inc. Announces Name Change to QCR Holdings, Inc. and First Quarter Earnings Results Quad City Holdings, Inc. announced that, effective today, the Company has changed its name to QCR Holdings, Inc. The name change was approved by the Company's stockholders at the October 24, 2001 annual stockholders meeting. "We believe that this new name will maintain our exposure in the Quad Cities marketplace, while increasing our identification in our new marketplace of Cedar Rapids, Iowa," said Doug Hultquist, President and Chief Executive Officer. He added, "It is important to us that our Company name reflect our intention to continue expanding our presence in the Quad Cities area, as well as our plan to reflect our intention to create a significant banking presence in the Cedar Rapids community with our new bank subsidiary, Cedar Rapids Bank and Trust Company." The Company's common stock will continue to trade on the Nasdaq SmallCap Market under a new symbol of QCRH. The Company also announced earnings for the first fiscal quarter ended September 30, 2001 of $648,000, or both basic and diluted earnings per share of $.26. For the quarter ended September 30, 2000, the Company reported earnings of $660,000, or basic and diluted earnings per share of $.29 and $.28, respectively. The slight reduction in earnings for the quarter ended September 30, 2001, as compared to the same period one year ago, was the result of significant initial start-up expenses associated with the Company's expansion to the Cedar Rapids, Iowa market, offset by improved earnings at the Company's Quad City Bank & Trust subsidiary. Michael Bauer, Chairman of the Company and President and Chief Executive Officer of Quad City Bank & Trust noted, "We are extremely pleased with the improved operating results at Quad City Bank & Trust. For the quarter, we reported bank earnings of $1,150,000, which is an improvement of more than $310,000, or 38%, from the same quarter last year and represents a fiscal year to date annualized return on assets of 1.13% and return on equity of 15.01%. Significant improvement in the bank's net interest margin and strong earnings from the sale of residential real estate loans were the main contributors to the strong quarter for Quad City Bank & Trust." "While first quarter earnings are down slightly from last year, given the more than $400,000 in start-up expenses we incurred getting the Cedar Rapids operations up and running, we are extremely pleased that nearly all of these start-up expenses were offset by significant earnings improvements at Quad City Bank & Trust," noted Todd Gipple, Executive Vice President and Chief Financial Officer. He added, "We anticipate continued start-up losses at Cedar Rapids Bank & Trust for the remainder of the fiscal year and through a portion of fiscal year 2003, however, to date these losses have been less than expected." "The Cedar Rapids community has embraced Cedar Rapids Bank & Trust since our September 28th grand opening," noted Larry Helling, President and Chief Executive Officer of Cedar Rapids Bank & Trust. He added, "We have assembled an outstanding group of local business leaders for our board of directors, and a talented staff of experienced bankers. We are already seeing a significant number of new commercial and retail relationships come to the bank, and we are quite pleased with the community's reaction to our plan to build a locally managed community-oriented bank with a focus on commercial banking." The Company's total assets increased by $24.8 million or 6% to $425.7 million at September 30, 2001 from $400.9 million at June 30, 2001. During the same period, net loans increased by $22.0 million or 8% to $305.6 million from $283.6 million at June 30, 2001. Total deposits increased 4% to $315.5 million at September 30, 2001 from $302.1 million at June 30, 2001. Stockholders' equity rose to $30.1 million at September 30, 2001 as compared to $23.8 million at June 30, 2001. Net interest income for the three months ended September 30, 2001 was $3.4 million as compared to $2.9 million for the same period one year ago. For the three month period ended September 30, 2001, net interest margin was 3.64% as compared to 3.36% for the same period in 2000. Quad City Holdings, Inc., headquartered in Moline, Illinois, is a multi- bank holding company which serves the Quad City and Cedar Rapids communities via its wholly owned subsidiaries, Quad City Bank and Trust Company, based in Bettendorf, Iowa, and Cedar Rapids Bank and Trust Company, based in Cedar Rapids, Iowa. Quad City Bank and Trust Company, which commenced operations in 1994, and Cedar Rapids Bank and Trust Company, which commenced operations in 2001, provide 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 2001 2001 2000 (dollars in thousands, except share data) SELECTED BALANCE SHEET DATA Total assets $ 425,694 $ 400,948 $ 380,976 Securities 60,800 56,710 55,548 Total loans 310,266 287,865 251,782 Allowance for estimated loan losses 4,630 4,248 3,778 Total deposits 315,544 302,155 298,119 Total stockholders' equity 30,116 23,817 20,992 Common shares outstanding 2,740,844 2,265,420 2,272,420 Book value per common share $ 10.99 $ 10.51 $ 9.24 Full time equivalent employees 172 167 156 Tier 1 leverage capital ratio 9.39% 7.78% 7.77% As Of September 30, June 30, September 30, 2001 2001 2000 (dollars in thousands) ANALYSIS OF LOAN DATA Nonaccrual loans $ 2,172 $ 1,232 $ 334 Accruing loans past due 90 days or more 1,017 495 802 Other real estate owned 47 47 - Total nonperforming assets 3,236 1,774 1,136 Net charge-offs (for the quarter ended/ fiscal year ended) $ 27 $ 259 $ 16 Loan mix: Commercial $ 228,204 $ 209,889 $ 177,217 Real estate 43,649 40,587 39,799 Installment and other consumer 38,413 37,389 34,766 Total loans 310,266 287,865 251,782 For the Quarter Ended September 30 169: 2001 2000 (dollars in thousands, except per share data) SELECTED INCOME STATEMENT DATA Interest income $ 6,950 $ 6,978 Interest expense 3,520 4,119 Net interest income 3,430 2,859 Provision for loan losses 409 176 Noninterest income 1,848 1,372 Noninterest expense 3,926 3,078 Income tax expense 295 317 Net income 648 660 Earnings per common share (basic) $ 0.26 $ 0.29 Earnings per common share (diluted) $ 0.26 $ 0.28 AVERAGE BALANCES Assets $ 414,526 $ 371,254 Deposits 309,240 290,126 Loans 299,879 246,705 Stockholders' equity 25,618 20,504 KEY RATIOS Return on average assets (annualized) 0.63% 0.71% Return on average common equity (annualized) 10.12% 12.88% Net interest margin 3.64% 3.36% Efficiency ratio 74.35% 72.48% For the Quarter Ended September 30, 2001 2000 (dollars in thousands, except share data) ANALYSIS OF NONINTEREST INCOME Merchant credit card fees, net of processing cost $ 520 $ 372 Trust department fees 477 505 Deposit service fees 238 178 Gain on sales of loans, net 462 127 Securities gains (losses), net (1) - Other 152 190 Total noninterest income 1,848 1,372 ANALYSIS OF NONINTEREST EXPENSE Salaries and employee benefits $ 2,290 $ 1,782 Professional and data processing fees 373 264 Advertising and marketing 112 127 Occupancy and equipment expense 530 420 Stationery and supplies 105 72 Postage and telephone 109 94 Other 407 319 Total noninterest expenses 3,926 3,078 WEIGHTED AVERAGE SHARES Common shares outstanding (a) 2,454,757 2,275,261 Incremental shares from assumed conversion: Options 46,408 57,107 Adjusted weighted average shares (b) 2,501,165 2,332,368 (a) Denominator for Basic Earnings Per Share (b) Denominator for Diluted Earnings Per Share