Note 21. Parent Company Only Financial Statements

The following is condensed financial information of QCR Holdings, Inc. (parent company only):

Condensed Balance Sheets
December 31, 2019 and 2018


	2019		2018
	(dollars in thousands)
Assets
Cash and due from banks	$	59,529	$	6,606
Interest-bearing deposits at financial institutions		5,601		1,001
Investment in bank subsidiaries		570,698		532,164
Investment in nonbank subsidiaries		13,239		4,880
Premises and equipment, net		9,424		6,956
Goodwill		682		3,766
Intangibles		1,503		1,855
Other assets		15,150		14,794
Total assets	$	675,826	$	572,022

Liabilities and Stockholders' Equity
Liabilities:
Other borrowings	$	—	$	32,250
Subordinated notes		63,531		—
Junior subordinated debentures		37,838		37,670
Other liabilities		39,106		28,964
Total liabilities		140,475		98,884

Stockholders' Equity:
Common stock		15,828		15,718
Additional paid-in capital		274,785		270,761
Retained earnings		245,836		192,203
Accumulated other comprehensive loss		(1,098)		(5,544)
Total stockholders' equity		535,351		473,138
Total liabilities and stockholders' equity	$	675,826	$	572,022

Note 21. Parent Company Only Financial Statements (continued)

Condensed Statements of Income
Years Ended December 31, 2019, 2018, and 2017


	2019		2018		2017
	(dollars in thousands)

Total interest income	$	77	$	88	$	13
Equity in net income of bank subsidiaries		69,966		55,209		45,104
Equity in net income of nonbank subsidiaries		6,797		(436)		75
Securities gains		—		—		6
Other		314		(322)		3
Total income		77,154		54,539		45,201

Interest expense		5,836		3,637		2,658
Salaries and employee benefits		8,739		6,598		5,022
Professional fees		1,545		1,872		1,345
Acquisition costs		—		1,654		1,069
Post-acquisition compensation, transition and integration costs		3,171		165		3,151
Disposition costs		1,606		—		—
Goodwill impairment		3,000		—		—
Other		2,147		1,026		1,134
Total expenses		26,044		14,952		14,379

Income before income tax benefit		51,110		39,587		30,822

Income tax benefit		6,298		3,533		4,885
Net income	$	57,408	$	43,120	$	35,707

Note 21. Parent Company Only Financial Statements (continued)

Condensed Statements of Cash Flows
Years Ended December 31, 2019, 2018, and 2017


	2019		2018		2017
	(dollars in thousands)
Cash Flows from Operating Activities:
Net income	$	57,408	$	43,120	$	35,707
Adjustments to reconcile net income to net cash provided by operating activities:
Earnings of bank subsidiaries		(69,966)		(55,209)		(45,104)
Earnings (losses) of nonbank subsidiaries		(6,797)		436		(75)
Distributions from bank subsidiaries		—		34,500		21,000
Distributions from nonbank subsidiaries		45,058		63		39
Accretion of acquisition fair value adjustments		305		183		149
Depreciation		327		249		225
Stock-based compensation expense		2,469		1,443		1,187
Securities gains, net		—		—		(6)
Goodwill impairment		3,000		—		—
Decrease (increase) in other assets		26		2,232		(969)
(Decrease) increase in other liabilities		7,814		(7,226)		(6,919)
Net cash provided by operating activities		39,644		19,791		5,234

Cash Flows from Investing Activities:
Net increase (decrease) in interest-bearing deposits at financial institutions		(4,600)		(1,000)		—
Activity in securities portfolio:
Calls, maturities and redemptions		—		—		6
Sales		—		—		32
Capital infusion, bank subsidiaries		(8,600)		(3,500)		—
Capital infusion, non-bank subsidiaries		(100)		—		—
Net cash paid for acquisitions		—		(5,183)		(3,369)
Purchase of premises and equipment		(2,861)		(2,257)		(69)
Net cash (used in) investing activities		(16,161)		(11,940)		(3,400)

Cash Flows from Financing Activities:
Activity in other borrowings:
Proceeds from other borrowings		—		9,000		7,000
Paydown on revolving line of credit		(9,000)		—		—
Prepayments		(21,313)		—		—
Calls, maturities and scheduled payments		(1,799)		(12,550)		(11,000)
Proceeds from subordinated notes		63,393		—		—
Payment of cash dividends on common and preferred stock		(3,767)		(3,300)		(2,494)
Proceeds from issuance of common stock, net		1,926		1,279		2,056
Net cash provided by (used in) financing activities		29,440		(5,571)		(4,438)

Net increase (decrease) in cash and due from banks		52,923		2,280		(2,604)

Cash and due from banks:
Beginning		6,606		4,326		6,930
Ending	$	59,529	$	6,606	$	4,326