Note 21 - Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Parent Company Only Financial Statements

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, 2020 and 2019

	2020		2019
	(dollars in thousands)
Assets
Cash and due from banks	$	88,610	$	59,529
Interest-bearing deposits at financial institutions		7,200		5,601
Investment in bank subsidiaries		655,232		570,698
Investment in nonbank subsidiaries		4,540		13,239
Premises and equipment, net		9,242		9,424
Goodwill		—		682
Intangibles		—		1,503
Other assets		7,225		15,150
Total assets	$	772,049	$	675,826
Liabilities and Stockholders' Equity
Liabilities:
Subordinated notes	$	113,691	$	63,531
Junior subordinated debentures		37,993		37,838
Other liabilities		26,572		39,106
Total liabilities		178,256		140,475
Stockholders' Equity:
Common stock		15,806		15,828
Additional paid-in capital		275,807		274,785
Retained earnings		300,804		245,836
Accumulated other comprehensive loss		1,376		(1,098)
Total stockholders' equity		593,793		535,351
Total liabilities and stockholders' equity	$	772,049	$	675,826

Note 21. Parent Company Only Financial Statements (continued)

Condensed Statements of Income
Years Ended December 31, 2020, 2019, and 2018

	2020		2019		2018
	(dollars in thousands)
Total interest income	$	29	$	77	$	88
Equity in net income of bank subsidiaries		79,624		69,966		55,209
Equity in net income of nonbank subsidiaries		(261)		6,797		(436)
Other		289		314		(322)
Total income		79,681		77,154		54,539
Interest expense		6,662		5,836		3,637
Salaries and employee benefits		11,825		8,739		6,598
Professional fees		2,558		1,545		1,872
Acquisition costs		—		—		1,654
Post-acquisition compensation, transition and integration costs		145		3,171		165
Disposition costs		312		1,606		—
Goodwill impairment		500		3,000		—
Other		2,505		2,147		1,026
Total expenses		24,507		26,044		14,952
Income before income tax benefit		55,174		51,110		39,587
Income tax benefit		5,408		6,298		3,533
Net income	$	60,582	$	57,408	$	43,120

Note 21. Parent Company Only Financial Statements (continued)

Condensed Statements of Cash Flows
Years Ended December 31, 2020, 2019, and 2018

	2020		2019		2018
	(dollars in thousands)
Cash Flows from Operating Activities:
Net income	$	60,582	$	57,408	$	43,120
Adjustments to reconcile net income to net cash provided by operating activities:
Earnings of bank subsidiaries		(79,624)		(69,966)		(55,209)
Earnings (losses) of nonbank subsidiaries		261		(6,797)		436
Distributions from bank subsidiaries		—		—		34,500
Distributions from nonbank subsidiaries		40		45,058		63
Deferred income taxes		6,909		2,498		1,292
Accretion of acquisition fair value adjustments		378		305		183
Depreciation		454		327		249
Stock-based compensation expense		2,150		2,469		1,443
Loss on sale of subsidiary		158		—		—
Goodwill impairment		500		3,000		—
Decrease (increase) in other assets		1,663		(2,472)		940
Increase (decrease) in other liabilities		(14,966)		7,814		(7,226)
Net cash provided by (used in) operating activities		(21,495)		39,644		19,791
Cash Flows from Investing Activities:
Net increase in interest-bearing deposits at financial institutions		(1,599)		(4,600)		(1,000)
Capital infusion, bank subsidiaries		—		(8,600)		(3,500)
Capital infusion, non-bank subsidiaries		—		(100)		—
Net cash received in dissolution of subsidiary		8,450		—		—
Net cash paid for acquisitions		—		—		(5,183)
Net cash received in sale of subsidiary		195		—		—
Purchase of premises and equipment		(272)		(2,861)		(2,257)
Net cash provided by (used in) investing activities		6,774		(16,161)		(11,940)
Cash Flows from Financing Activities:
Activity in other borrowings:
Proceeds from other borrowings		—		—		9,000
Paydown on revolving line of credit		—		(9,000)		—
Prepayments		—		(21,313)		—
Calls, maturities and scheduled payments		—		(1,799)		(12,550)
Proceeds from subordinated notes		50,000		63,393		—
Payment of cash dividends on common and preferred stock		(3,779)		(3,767)		(3,300)
Proceeds from issuance of common stock, net		1,360		1,926		1,279
Repurchase and cancellation of shares		(3,779)		—		—
Net cash provided by (used in) financing activities		43,802		29,440		(5,571)
Net increase in cash and due from banks		29,081		52,923		2,280
Cash and due from banks:
Beginning		59,529		6,606		4,326
Ending	$	88,610	$	59,529	$	6,606