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QCR Holdings, Inc. Announces Net Income of $4.2 Million for the First Quarter of 2015

MOLINE, Ill., April 22, 2015 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (Nasdaq:QCRH) today announced net income of $4.2 million for the quarter ended March 31, 2015, and diluted earnings per common share ("EPS") of $0.52. By comparison, for the quarter ended December 31, 2014, the Company reported net income of $3.0 million, and diluted EPS of $0.37. As a result of the redemption of all of the Company's remaining outstanding shares of preferred stock in the second quarter of 2014, neither quarter included preferred stock dividends. For the first quarter of 2014, the Company reported net income of $3.9 million, and diluted EPS of $0.40, after preferred stock dividends of $708 thousand.

"We are pleased with the improvement in earnings this quarter and feel positive about trends in performance and asset quality measurements," said Doug Hultquist, President and Chief Executive Officer. He added, "Increased earnings this quarter were aided by a decrease in provision for loan losses, as asset quality rebounded from 2014 levels. In addition, noninterest income increased 7% over the prior quarter and 32% over the prior year. We continue to focus on growing recurring revenue streams, while also taking advantage of market opportunities that were a result of the low interest rate environment in the first quarter. Most notably, we continued to execute on our asset rotation strategy and sold low-yielding investment securities at net gains, while utilizing the sales proceeds to fund loans at a higher yield."

Net Interest Margin Expanded 5 Basis Points from Prior Quarter
And 14 Basis Points Compared to First Quarter of 2014

Net interest income totaled $17.8 million for the quarter ended March 31, 2015. By comparison, net interest income totaled $17.8 million and $16.8 million for the quarters ended December 31, 2014 and March 31, 2014, respectively. Net interest income increased $933 thousand, or 6%, compared to the same quarter of 2014.

"The current period represents the fifth consecutive quarter of net interest margin expansion, as our margin increased five basis points to 3.25%," stated Mr. Hultquist. He added, "This is primarily the result of our strategy to redeploy funds from the securities portfolio into loans and leases, with a goal of growing loans and leases to more than 70% of total assets. We are making steady progress toward this goal, as total loans and leases as a percentage of total assets increased from 65% in the prior quarter to 66% in the current quarter. Additionally, we are focused on improving our funding mix through further growth in noninterest bearing deposits and reductions in high-cost wholesale funding. We believe that continued execution of these strategies will help us move closer to our targeted return on assets of 1.00%."

Loan and Lease Growth of $24.4 Million, or 1.5%, in the Current Quarter

During the first quarter of 2015, the Company's total assets decreased $33.3 million, or 1%, to a total of $2.49 billion, while total loans and leases grew $24.4 million, or 1.5%, during the quarter. The loan and lease growth was funded by securities sales and deposit growth. Deposits grew $54.6 million, or more than 3%, during the quarter. Excess cash was also used to pay down borrowings, consisting mostly of federal funds purchased, which decreased $93.2 million, or 14%, during the quarter.

"We had modest loan and lease growth in the first quarter of 2015, with growth of $24.4 million, or 1.5%," commented Todd A. Gipple, Executive Vice President, Chief Operating Officer, and Chief Financial Officer. "Although this rate of growth does not result in the 10-12% annualized growth rate that we'd like to see, this slower pace of loan growth was expected given the significant growth the Company reported in the fourth quarter of 2014. The loan pipelines are active and while competition remains fierce in all of the markets we serve, we expect to return to a more normal annualized growth rate for the remainder of the year."

"Swap fee income was strong this quarter at $726 thousand," said Mr. Gipple. "The current low interest rate environment has been ideal for the execution of several interest rate swaps on select commercial loans. These transactions are favorable for all parties involved, as our customers receive the long-term, fixed rate loan that they prefer, while we hold a variable rate loan, helping to mitigate interest rate risk in rising rate scenarios. We also receive an upfront fee related to these transactions. We plan to continue executing these types of transactions, in addition to the sale of government guaranteed loans, as they both provide unique solutions for our customers' needs."

Nonperforming Assets Decreased $2.9 Million, or 9%, During the First Quarter

Nonperforming loans and leases at March 31, 2015 were $16.5 million, which were down $3.6 million, or 18%, from December 31, 2014. In addition, the ratio of nonperforming assets ("NPAs") to total assets was 1.21% at March 31, 2015, which was down from 1.31% at December 31, 2014.

"Our nonperforming assets metrics showed strong improvement this quarter, mostly due to payoffs or improved performance of nonaccrual loans, and there were no significant additions," stated Mr. Gipple. "We have historically demonstrated better-than-peer asset quality metrics, with respect to NPAs as a percentage of total assets and charge-offs as a percentage of average loans, both during and subsequent to the credit crisis, and we are focused on reducing our NPAs as a percentage of total assets to less than 1.00% as quickly as possible."

The Company's provision for loan/lease losses totaled $1.7 million for the first quarter of 2015, which was down $1.9 million from the prior quarter, and up $616 thousand compared to the first quarter of 2014. The Company had net charge-offs of $901 thousand for the first quarter of 2015 which, when coupled with the provision of $1.7 million, increased the Company's allowance for loan/lease losses ("allowance") to $23.9 million at March 31, 2015. As of March 31, 2015, the Company's allowance to total loans/leases was 1.44%, which was up from 1.42% at December 31, 2014, and down from 1.52% at March 31, 2014. In accordance with generally accepted accounting principles for acquisition accounting, the loans acquired through the acquisition of Community National Bank ("CNB") in May 2013 were recorded at market value; therefore, there was no allowance associated with CNB's loans at acquisition. Management continues to evaluate the allowance needed on the acquired CNB loans, factoring in the net remaining discount ($1.1 million at March 31, 2015) originally established upon acquisition. The Company's allowance to total nonperforming loans/leases was 144% at March 31, 2015, which was up from 115% at December 31, 2014, and up from 122% at March 31, 2014.

Capital Levels Remain Strong
Tangible Common Equity Ratio and Tangible Book Value Continue to Grow

Mr. Gipple stated, "In addition to fully converting or redeeming all of our preferred equity and eliminating our preferred dividend commitment in the second quarter of 2014, we continue to demonstrate our ability to organically grow our tangible common equity ("TCE") ratio. The Company's TCE ratio, which remains low relative to the Company's peers, has grown since December of 2013 from 4.71% to 5.88%, while at the same time, tangible book value has increased from $14.29 per share to $18.29 per share." He continued, "We and our subsidiary banks continue to maintain capital at levels above the existing well-capitalized minimum requirements administered by the federal regulatory agencies. Our capital plan is also consistent with the requirements of the new regulatory capital guidelines that are effective for the reporting period ending March 31, 2015 under Basel III."

As previously announced, on June 30, 2014, the Company filed a universal shelf registration statement on Form S-3 with the Securities and Exchange Commission ("SEC"). This registration statement, declared effective by the SEC on July 14, 2014, will allow the Company to issue various types of securities, from time to time, up to an aggregate amount of $75.0 million. The specific terms and prices of the securities will be determined at the time of any future offering and described in a separate prospectus supplement, which would be filed with the SEC at the time of the particular offering, if any.

About Us

QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company, which serves the Quad City, Cedar Rapids, and Rockford communities through its wholly owned subsidiary banks. Quad City Bank & Trust Company, which is based in Bettendorf, Iowa, and commenced operations in 1994, Cedar Rapids Bank & Trust Company, which is based in Cedar Rapids, Iowa, and commenced operations in 2001, and Rockford Bank & Trust Company, which is based in Rockford, Illinois, and commenced operations in 2005, provide full-service commercial and consumer banking and trust and asset management services. Quad City Bank & Trust Company also engages in commercial leasing through its wholly owned subsidiary, m2 Lease Funds, LLC, based in Milwaukee, Wisconsin. With the acquisition of Community National Bancorporation on May 13, 2013, the Company now serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company.

Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company's management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "predict," "suggest," "appear," "plan," "intend," "estimate," "annualize," "may," "will," "would," "could," "should" or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local and national economy; (ii) the economic impact of any future terrorist threats and attacks, and the response of the United States to any such threats and attacks; (iii) changes in state and federal laws, regulations and governmental policies concerning the Company's general business, including Basel III, the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations issued thereunder; (iv) changes in interest rates and prepayment rates of the Company's assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) the integration of acquired entities, including CNB; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x) unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the SEC.

QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
As of
March 31, December 31, March 31,
2015 2014 2014
(dollars in thousands, except share data)
CONDENSED BALANCE SHEET Amount % Amount % Amount %
Cash, federal funds sold, and interest-bearing deposits $ 76,292 3% $ 120,350 5% $ 111,403 5%
Securities 637,404 26% 651,539 26% 707,107 29%
Net loans/leases 1,630,568 65% 1,606,929 64% 1,469,926 61%
Core deposit intangible 1,621 0% 1,671 0% 1,821 0%
Goodwill 3,223 0% 3,223 0% 3,223 0%
Other assets 142,551 6% 141,246 5% 132,839 5%
Total assets $ 2,491,659 100% $ 2,524,958 100% $ 2,426,319 100%
Total deposits $ 1,734,269 70% $ 1,679,668 67% $ 1,671,893 69%
Total borrowings 569,404 23% 662,558 26% 583,843 24%
Other liabilities 36,990 1% 38,653 1% 29,226 1%
Total stockholders' equity 150,996 6% 144,079 6% 141,357 6%
Total liabilities and stockholders' equity $ 2,491,659 100% $ 2,524,958 100% $ 2,426,319 100%
SELECTED INFORMATION FOR COMMON STOCKHOLDERS' EQUITY
Common stockholders' equity * $ 150,996 $ 144,079 $ 126,533
Common shares outstanding 7,991,794 7,953,197 7,917,362
Book value per common share * $ 18.89 $ 18.12 $ 15.98
Tangible book value per common share ** $ 18.29 $ 17.50 $ 15.34
Closing stock price $ 17.85 $ 17.86 $ 17.16
Market capitalization $ 142,654 $ 142,044 $ 135,862
Market price / book value 94.48% 98.59% 107.37%
Market price / tangible book value 97.61% 102.05% 111.84%
Tangible common equity *** / total tangible assets (TCE/TA) 5.88% 5.52% 5.02%
TCE/TA excluding accumulated other comprehensive income (loss) 5.87% 5.60% 5.36%
REGULATORY CAPITAL RATIOS:
Total risk-based capital ratio 10.41% **** 10.91% 12.03%
Tier 1 risk-based capital ratio 9.11% **** 9.52% 10.61%
Tier 1 leverage capital ratio 7.20% **** 7.62% 7.49%
Common Equity Tier 1 ratio 7.33% **** N/A N/A
For the quarter ended March 31,
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY 2015 2014
Beginning balance $ 144,079 $ 147,577
Net income 4,178 3,889
Other comprehensive income, net of tax 2,221 5,231
Preferred and common cash dividends declared -- (708)
Redemption of 15,000 shares of Series F Preferred Stock -- (15,000)
Other ***** 518 368
Ending balance $ 150,996 $ 141,357
For the quarter ended March 31,
ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES 2015 2014
Beginning balance $ 23,074 $ 21,448
Provision charged to expense 1,710 1,094
Loans/leases charged off (1,107) (79)
Recoveries on loans/leases previously charged off 206 190
Ending balance $ 23,883 $ 22,653
* Includes accumulated other comprehensive income (loss).
**Includes accumulated other comprehensive income (loss) and excludes intangible assets.
***Tangible common equity is defined as total common stockholders' equity excluding goodwill and other intangibles. This ratio is a non-GAAP financial measure. The Company's management believes that this measure is important to many investors in the marketplace who are interested in changes period-to-period in common equity exclusive of changes in intangible assets.
****Subject to change upon final calculation for regulatory filings due after earnings release.
*****Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
As of
March 31, December 31, March 31,
2015 2014 2014
(dollars in thousands)
ANALYSIS OF LOAN DATA Amount % Amount % Amount %
Nonaccrual loans/leases $ 14,529 48% $ 18,588 56% $ 17,653 62%
Accruing loans/leases past due 90 days or more 668 2% 93 0% 5 0%
Troubled debt restructures - accruing 1,348 5% 1,421 5% 974 3%
Total nonperforming loans/leases 16,545 55% 20,102 61% 18,632 65%
Other real estate owned 13,245 44% 12,768 39% 9,675 34%
Other repossessed assets 326 1% 155 0% 252 1%
Total nonperforming assets $ 30,116 100% $ 33,025 100% $ 28,559 100%
Net charge-offs - calendar year-to-date $ 901 $ 5,181 $ (111)
Loan/lease mix:
Commercial and industrial loans $ 534,885 32% $ 523,927 32% $ 442,350 30%
Commercial real estate loans 709,682 43% 702,140 43% 679,228 46%
Direct financing leases 167,244 10% 166,032 10% 139,994 9%
Residential real estate loans 163,740 10% 158,633 10% 148,950 10%
Installment and other consumer loans 71,902 5% 72,607 5% 76,810 5%
Deferred loan/lease origination costs, net of fees 6,998 0% 6,664 0% 5,247 0%
Total loans/leases $ 1,654,451 100% $ 1,630,003 100% $ 1,492,579 100%
Less allowance for estimated losses on loans/leases 23,883 23,074 22,653
Net loans/leases $ 1,630,568 $ 1,606,929 $ 1,469,926
ANALYSIS OF SECURITIES DATA
Securities mix:
U.S. government sponsored agency securities $ 299,180 47% $ 307,869 47% $ 350,338 50%
Municipal securities 243,810 38% 229,230 35% 195,655 28%
Residential mortgage-backed and related securities 91,363 14% 111,423 17% 158,119 22%
Other securities 3,051 1% 3,017 1% 2,995 0%
Total securities $ 637,404 100% $ 651,539 100% $ 707,107 100%
ANALYSIS OF DEPOSIT DATA
Deposit mix:
Noninterest-bearing demand deposits $ 582,510 34% $ 511,992 31% $ 579,110 34%
Interest-bearing demand deposits 804,351 46% 792,052 47% 715,527 43%
Time deposits 279,660 16% 306,364 18% 297,874 18%
Brokered time deposits 67,748 4% 69,260 4% 79,382 5%
Total deposits $ 1,734,269 100% $ 1,679,668 100% $ 1,671,893 100%
ANALYSIS OF BORROWINGS DATA
Borrowings mix:
FHLB advances $ 196,500 35% $ 203,500 31% $ 235,700 40%
Wholesale structured repurchase agreements 130,000 23% 130,000 19% 130,000 22%
Customer repurchase agreements 150,796 26% 137,252 21% 136,649 24%
Federal funds purchased 32,540 6% 131,100 20% 28,920 5%
Junior subordinated debentures 40,458 7% 40,424 6% 40,323 7%
Other 19,110 3% 20,282 3% 12,251 2%
Total borrowings $ 569,404 100% $ 662,558 100% $ 583,843 100%
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
For the Quarter Ended
March 31, December 31, March 31,
2015 2014 2014
(dollars in thousands, except per share data)
CONDENSED INCOME STATEMENT
Interest income $ 21,902 $ 22,028 $ 21,035
Interest expense 4,120 4,247 4,186
Net interest income 17,782 17,781 16,849
Provision for loan/lease losses 1,710 3,648 1,094
Net interest income after provision for loan/lease losses 16,072 14,133 15,755
Noninterest income 6,250 5,839 4,747
Noninterest expense 17,233 16,635 16,141
Net income before taxes 5,089 3,337 4,361
Income tax expense 911 344 472
Net income $ 4,178 $ 2,993 $ 3,889
Less: Preferred stock dividends -- -- 708
Net income attributable to QCR Holdings, Inc. common stockholders $ 4,178 $ 2,993 $ 3,181
Earnings per common share:
Basic $ 0.52 $ 0.38 $ 0.40
Diluted $ 0.52 $ 0.37 $ 0.40
Earnings per common share (basic) LTM * $ 1.87 $ 1.75 $ 2.03
Weighted average common shares outstanding 7,975,910 7,943,275 7,901,035
Weighted average common and common equivalent shares outstanding 8,097,444 8,073,386 8,030,043
AVERAGE BALANCES
Assets $ 2,506,497 $ 2,487,698 $ 2,434,158
Loans/leases $ 1,635,705 $ 1,604,928 $ 1,465,061
Deposits $ 1,747,205 $ 1,747,249 $ 1,683,216
Total stockholders' equity $ 148,139 $ 141,942 $ 150,063
Common stockholders' equity $ 148,139 $ 141,942 $ 122,143
KEY PERFORMANCE RATIOS
Return on average assets (annualized) *** 0.67% 0.48% 0.64%
Return on average common equity (annualized) ** 11.28% 8.43% 10.42%
Return on average total equity (annualized) *** 11.28% 8.43% 10.37%
Price earnings ratio LTM * 9.55 x 10.21 x 8.45 x
Net interest margin (TEY) 3.25% 3.20% 3.11%
Nonperforming assets / total assets 1.21% 1.31% 1.18%
Net charge-offs / average loans/leases 0.06% 0.21% -0.01%
Allowance / total loans/leases **** 1.44% 1.42% 1.52%
Allowance / nonperforming loans **** 144.35% 114.78% 121.58%
Efficiency ratio 71.71% 70.43% 74.74%
Full-time equivalent employees 411 409 403
*LTM: Last twelve months.
**The numerator for this ratio is "Net income attributable to QCR Holdings, Inc. common stockholders".
***The numerator for this ratio is "Net income".
****Upon acquisition per GAAP, the acquired loans are recorded at market value which eliminated the allowance and impacts these ratios.
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
ANALYSIS OF NET INTEREST INCOME AND MARGIN
For the Quarter Ended
March 31, 2015 December 31, 2014 March 31, 2014
Average Interest Average Yield Average Interest Average Yield Average Interest Average Yield
Balance Earned or Paid or Cost Balance Earned or Paid or Cost Balance Earned or Paid or Cost
(dollars in thousands)
Securities * $ 625,834 $ 4,492 2.91% $ 657,092 $ 4,616 2.79% $ 722,220 $ 4,655 2.61%
Loans * 1,635,705 18,304 4.54% 1,604,928 18,351 4.54% 1,465,061 16,968 4.70%
Other 99,604 223 0.91% 86,218 209 0.96% 116,620 223 0.78%
Total earning assets * $ 2,361,143 $ 23,019 3.95% $ 2,348,238 $ 23,176 3.92% $ 2,303,901 $ 21,846 3.85%
Deposits $ 1,161,715 $ 1,072 0.37% $ 1,166,884 $ 1,137 0.39% $ 1,097,775 $ 1,102 0.41%
Borrowings 576,845 3,047 2.14% 561,955 3,110 2.20% 567,239 3,084 2.20%
Total interest-bearing liabilities $ 1,738,560 $ 4,119 0.96% $ 1,728,839 $ 4,247 0.97% $ 1,665,014 4,186 1.02%
Net interest income / spread * $ 18,900 2.99% $ 18,929 2.95% $ 17,660 2.83%
Net interest margin * 3.25% 3.20% 3.11%
* Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 35% tax rate for each period presented.
For the Quarter Ended
March 31, December 31, March 31,
2015 2014 2014
ANALYSIS OF NONINTEREST INCOME (dollars in thousands)
Trust department fees $ 1,633 $ 1,415 $ 1,500
Investment advisory and management fees 710 711 649
Deposit service fees 1,117 1,177 1,046
Gain on sales of residential real estate loans 86 144 63
Gain on sales of government guaranteed portions of loans 71 1,180 194
Earnings on cash surrender value of life insurance 479 445 454
Swap fee income 726 93 62
Debit card fees 238 219 231
Correspondent banking fees 320 318 232
Participation service fees on commercial loan participations 222 222 206
Losses on other real estate owned, net (29) (333) (18)
Securities gains 421 52 21
Other 256 196 107
Total noninterest income $ 6,250 $ 5,839 $ 4,747
ANALYSIS OF NONINTEREST EXPENSE
Salaries and employee benefits $ 11,034 $ 10,038 $ 10,018
Occupancy and equipment expense 1,794 1,846 1,894
Professional and data processing fees 1,471 1,673 1,584
FDIC and other insurance 719 773 715
Loan/lease expense 467 403 346
Advertising and marketing 418 591 338
Postage and telephone 249 235 291
Stationery and supplies 143 144 152
Bank service charges 337 332 298
Other 601 600 505
Total noninterest expense $ 17,233 $ 16,635 $ 16,141
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
For the Quarter Ended
March 31, December 31, March 31,
SELECT FINANCIAL DATA - SUBSIDIARIES 2015 2014 2014
(dollars in thousands)
TOTAL ASSETS
Quad City Bank and Trust* $ 1,268,169 $ 1,320,684 $ 1,269,106
m2 Lease Funds, LLC 183,217 178,016 146,440
Cedar Rapids Bank and Trust 855,417 840,332 819,180
Rockford Bank and Trust 354,994 353,448 346,365
TOTAL DEPOSITS
Quad City Bank and Trust* $ 846,090 $ 813,805 $ 871,129
Cedar Rapids Bank and Trust 648,412 636,718 563,350
Rockford Bank and Trust 242,669 234,201 240,048
TOTAL LOANS & LEASES
Quad City Bank and Trust* $ 790,442 $ 783,486 $ 700,882
m2 Lease Funds, LLC 182,413 177,444 145,342
Cedar Rapids Bank and Trust 589,345 576,322 534,502
Rockford Bank and Trust 276,077 271,658 258,804
TOTAL LOANS & LEASES / TOTAL ASSETS
Quad City Bank and Trust* 62% 59% 55%
Cedar Rapids Bank and Trust 69% 69% 65%
Rockford Bank and Trust 78% 77% 75%
ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES
Quad City Bank and Trust* 1.45% 1.41% 1.41%
m2 Lease Funds, LLC 1.90% 1.94% 1.94%
Cedar Rapids Bank and Trust 1.44% 1.37% 1.63%
Rockford Bank and Trust 1.44% 1.51% 1.56%
ALLOWANCE AS A PERCENTAGE NONPERFORMING LOANS/LEASES
Quad City Bank and Trust* 93.86% 83.68% 119.79%
m2 Lease Funds, LLC 308.10% 257.13% 213.47%
Cedar Rapids Bank and Trust 350.23% 197.42% 167.59%
Rockford Bank and Trust 205.05% 143.36% 78.25%
NET INCOME
Quad City Bank and Trust* $ 2,975 $ 1,972 $ 2,759
m2 Lease Funds, LLC** 651 328 620
Cedar Rapids Bank and Trust 2,169 2,101 2,059
Rockford Bank and Trust 465 323 389
RETURN ON AVERAGE ASSETS
Quad City Bank and Trust* 0.93% 0.60% 0.87%
Cedar Rapids Bank and Trust 1.03% 0.99% 1.04%
Rockford Bank and Trust 0.54% 0.36% 0.46%
NET INTEREST MARGIN PERCENTAGE***
Quad City Bank and Trust* 3.11% 3.07% 2.99%
Cedar Rapids Bank and Trust 3.62% 3.58% 3.48%
Rockford Bank and Trust 3.44% 3.34% 3.29%
* Quad City Bank and Trust figures include m2 Lease Funds, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Lease Funds, LLC is also presented separately for certain (applicable) measurements.
** m2 Lease Funds, LLC net income is post-tax, using an estimated effective tax rate of 35%.
*** Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 35% tax rate for each period presented.

CONTACT: Todd A. Gipple Executive Vice President Chief Operating Officer Chief Financial Officer (309) 743-7745Source:QCR Holdings, Inc.