EX-99 3 qcrholdpl.txt PRESS RELEASE Contact: Todd A. Gipple Executive Vice President Chief Financial Officer (309) 736-3580 FOR IMMEDIATE RELEASE January 31, 2002 QCR Holdings, Inc. Announces Second Quarter Earnings Results QCR Holdings, Inc. (Nasdaq SmallCap: QCRH) today announced earnings for the second fiscal quarter ended December 31, 2001 of $689,000, or basic and diluted earnings per share of $.25 and $.24, respectively. For the same fiscal quarter in 2000, the Company reported earnings of $344,000, or both basic and diluted earnings per share of $.15. Earnings for the six months ended December 31, 2001 were $1.3 million, or basic and diluted earnings per share of $.51 and $.50, respectively, as compared to $1.0 million, or basic and diluted earnings per share of $.44 and $.43, respectively, for the same period in fiscal 2000. The Company recognized significant improvements in net interest income for both the quarter and six months ended December 31, 2001 of $841,000 and $1,412,000, respectively, as compared to the same periods one year ago. Gains on sales of real estate loans were the other significant contributor to the improved earnings results as the Company realized increased gains of $600,000 for the quarter and $935,000 for the six months ended December 31, 2001, versus the same periods one year ago. "We are pleased with the improved operating results for the quarter and six months ended December 31, 2001," said Doug Hultquist, President and Chief Executive Officer. "We have worked hard to significantly improve our net interest margin during the recent period of unprecedented declines in interest rates. As a result, our net interest margin was 3.76% and 3.70% for the quarter and six months ended December 31, 2001, respectively, as compared to 3.36% for both periods one year ago." Michael Bauer, Chairman of the Company and President and Chief Executive Officer of Quad City Bank & Trust added, "The Company was well positioned to take advantage of the significant residential real estate mortgage volume created by the record low mortgage rates in the last half of calendar 2001. While we anticipate that mortgage volumes will decrease in 2002, we believe that we have expanded our share of the residential mortgage market in both the Quad Cities and Cedar Rapids." These significant earnings improvements were partially offset by the anticipated start-up losses at the Company's newly chartered bank subsidiary, Cedar Rapids Bank & Trust, and increased loan loss provision expense primarily due to substantial loan growth at the Company's subsidiary banks during the period. Also impacting earnings for both the quarter and six months ended December 31, 2001 were full operating costs associated with Quad City Bank & Trust's fourth full service location that opened in late October of 2000 and continuing legal costs at the Company's subsidiary, Quad City Bancard, related to its arbitration to collect a large customer receivable. "We foresee our ongoing start-up expenses at Cedar Rapids Bank & Trust will exceed that location's revenue through the remainder of this fiscal year and into fiscal year 2003. However, these losses to date have been less than expected and the bank's growth has been greater than anticipated," noted Todd Gipple, Executive Vice President and Chief Financial Officer. He added, "We remain very confident that Cedar Rapids Bank & Trust will significantly enhance stockholder value over the long-term." The Company's total assets increased 15% to $462.7 million at December 31, 2001 from $400.9 million at June 30, 2001. During the same period, net loans increased by $54.5 million or 19% to $338.1 million from $283.6 million at June 30, 2001. Total deposits increased 14% to $343.9 million at December 31, 2001 from $302.1 million at June 30, 2001. Stockholders' equity rose to $30.3 million at December 31, 2001 as compared to $23.8 million at June 30, 2001. "Cedar Rapids Bank & Trust has been a significant contributor to the Company's growth in assets, loans, and deposits since our opening in mid-September of 2001. We experienced rapid growth in our first full quarter of operations and our charter has reached total assets of $34.4 million and loans of $28.6 million as of December 31, 2001," noted Cedar Rapids Bank & Trust President and Chief Executive Officer, Larry Helling. He added, "We continue to experience many new commercial and retail customers moving their banking relationships to us each week, and are very pleased with the market's reaction to our strategy of providing the highest levels of service and a personalized banking relationship." QCR 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. QCR HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) As of --------------------------------------- December 31, June 30, December 31, 2001 2001 2000 --------------------------------------- (dollars in thousands, except share data) SELECTED BALANCE SHEET DATA Total assets ......................... $ 462,685 $ 400,948 $ 394,482 Securities ........................... 66,121 56,710 57,401 Total loans .......................... 342,999 287,865 265,618 Allowance for estimated loan losses .. 4,939 4,248 3,972 Total deposits ....................... 343,888 302,155 307,422 Total stockholders' equity ........... 30,299 23,817 21,817 Common shares outstanding ............ 2,742,436 2,265,420 2,265,420 Book value per common share .......... $ 11.05 $ 10.51 $ 9.63 Full time equivalent employees ....... 179 167 163 Tier 1 leverage capital ratio ........ 9.06% 7.78% 7.61% QCR HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) As of ------------------------------------ December 31, June 30, December 31, 2001 2001 2000 ------------------------------------ (dollars in thousands) ANALYSIS OF LOAN DATA Nonaccrual loans ......................... $ 1,846 $ 1,232 $ 655 Accruing loans past due 90 days or more .. 1,765 495 1,197 Other real estate owned .................. 47 47 -- Total nonperforming assets ............... 3,658 1,774 1,852 Net charge-offs (For the six months ended/fiscal year ended) ............... $ 349 $ 259 $ 165 Loan mix: Commercial ............................. $255,493 $209,889 $187,017 Real estate ............................ 47,335 40,587 41,132 Installment and other consumer ......... 40,171 37,389 37,469 Total loans .............................. 342,999 287,865 265,618 QCR HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) For the Quarter Ended For the Six Months Ended December 31, December 31, ------------------------------------------------- 2001 2000 2001 2000 -------------------------------------------- (dollars in thousands, except per share data) SELECTED INCOME STATEMENT DATA Interest income ............................ $ 6,895 $ 7,265 $ 13,846 $ 14,243 Interest expense ........................... 3,113 4,323 6,634 8,442 Net interest income ........................ 3,782 2,942 7,212 5,801 Provision for loan losses .................. 631 344 1,040 520 Noninterest income ......................... 2,192 1,415 4,040 2,787 Noninterest expense ........................ 4,319 3,466 8,245 6,544 Income tax expense ......................... 335 203 630 520 Net income ................................. 689 344 1,337 1,004 Earnings per common share (basic) .......... $ 0.25 $ 0.15 $ 0.51 $ 0.44 Earnings per common share (diluted) ........ $ 0.24 $ 0.15 $ 0.50 $ 0.43 AVERAGE BALANCES Assets ..................................... $438,438 $383,659 $426,595 $376,954 Deposits ................................... 323,377 299,110 318,951 294,348 Loans ...................................... 324,203 262,105 312,295 254,780 Stockholders' equity ....................... 30,381 21,338 27,697 20,911 KEY RATIOS Return on average assets (annualized) ...... 0.63% 0.36% 0.63% 0.53% Return on average common equity (annualized) 9.07% 6.45% 9.65% 9.60% Net interest margin ........................ 3.76% 3.36% 3.70% 3.36% Efficiency ratio ........................... 72.25% 79.46% 73.24% 76.03%
QCR HOLDINGS, INC. CONSOLIDATED FINANCIAL HIGHLIGHTS (Unaudited) For the Quarter Ended For the Six Months Ended December 31, December 31, ------------------------------------------------------- 2001 2000 2001 2000 ------------------------------------------------------- (dollars in thousands, except share data) ANALYSIS OF NONINTEREST INCOME Merchant credit card fees, net of processing costs $ 503 $ 428 $ 1,022 $ 801 Trust department fees ............................ 521 512 997 1,017 Deposit service fees ............................. 226 169 464 347 Gain on sales of loans, net ...................... 771 171 1,233 298 Securities gains (losses), net ................... -- (23) (1) (23) Other ............................................ 172 158 325 348 Total noninterest income ...................... 2,193 1,415 4,040 2,788 ANALYSIS OF NONINTEREST EXPENSE Salaries and employee benefits ................... $ 2,484 $ 1,954 $ 4,774 $ 3,736 Professional and data processing fees ............ 412 328 785 592 Advertising and marketing ........................ 174 153 287 280 Occupancy and equipment expense .................. 608 498 1,138 918 Stationery and supplies .......................... 131 98 236 171 Postage and telephone ............................ 121 100 229 194 Other ............................................ 389 335 796 653 Total noninterest expenses .................... 4,319 3,466 8,245 6,544 WEIGHTED AVERAGE SHARES Common shares outstanding (a) .................... 2,801,180 2,267,659 2,627,969 2,271,460 Incremental shares from assumed conversion: Options ...................................... 50,457 39,207 48,560 48,157 Adjusted weighted average shares (b) ............. 2,851,637 2,306,866 2,676,529 2,319,617 (a) Denominator for Basic Earnings Per Share (b) Denominator for Diluted Earnings Per Share