QCR Holdings, Inc. Announces Net Income of $6.4 Million for the First Quarter of 2016

MOLINE, Ill., April 20, 2016 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ:QCRH) today announced net income of $6.4 million and diluted earnings per share (“EPS”) of $0.53 for the quarter ended March 31, 2016. By comparison, for the quarter ended December 31, 2015, the Company reported net income of $6.8 million and diluted EPS of $0.57. For the first quarter of 2015, the Company reported net income of $4.2 million, and diluted EPS of $0.52.

“We started out the year strong and are quite pleased with our operating performance,” commented Douglas M. Hultquist, President and Chief Executive Officer, “as net interest margin significantly expanded, organic loan growth was strong, growth in noninterest bearing deposits was solid and fee income for the quarter was robust. Our return on average assets (“ROAA”) has improved significantly from 0.67% a year ago to 0.98% in the current quarter. We have nearly achieved our targeted ROAA of 1.00% and we expect to continue to enhance profitability through our ongoing key initiatives.”

Net Interest Margin Expanded 18 Basis Points in First Quarter
and 34 Basis Points Year-Over-Year

Net interest income totaled $20.6 million for the quarter ended March 31, 2016. By comparison, net interest income totaled $19.9 million and $17.8 million for the quarters ended December 31, 2015 and March 31, 2015, respectively.

“Net interest margin increased 18 basis points from the prior quarter to 3.59%,” stated Todd A. Gipple, Executive Vice President, Chief Operating Officer and Chief Financial Officer. He added, “We were successful in improving loan yield as the impact of the December 2015 increase in the prime rate was fully recognized. Additionally, excess liquidity was reduced by approximately $56.7 million due to very strong loan and lease growth, increasing the yield on average earning assets to 4.07%, an improvement of 17 basis points. On the funding side, we further reduced our cost of wholesale funding by 8 basis points with the modest balance sheet restructurings that were executed in the fourth quarter of 2015 and early in the first quarter of 2016.”

Loan and Lease Growth Very Strong at 4.2% for Quarter
Swap Fee Income and Gains on the Sale of Government Guaranteed Loans Total $1.7 Million for the Quarter

During the first quarter of 2016, the Company’s total assets increased $47.5 million, or 2%, to a total of $2.64 billion, while total loans and leases grew $75.8 million. The loan and lease growth was funded primarily by deposit growth and reductions in the securities portfolio. Deposits grew $108.9 million, or 6%, during the quarter, while borrowings decreased $96.3 million.

“Loan and lease growth for the quarter totaled $75.8 million, or an annualized rate of 16.9%,” commented Mr. Gipple. “Loan and lease growth was very strong in the first quarter, helping us exceed our targeted annual organic growth rate of 10-12%. Solid loan and lease growth has continued to help us move our loan and lease to total asset ratio upward to 71%, from 69% in the fourth quarter of 2015 and from 66% one year ago.”

“Swap fee income and gains on the sale of government guaranteed loans are off to a very strong start in the first quarter of 2016, totaling $1.7 million,” said Mr. Gipple. “We plan to continue executing these types of transactions, as they provide unique solutions for our clients. Our goal is to grow these revenue streams to a combined $4.0 million annually.”

Nonperforming Assets Flat During the First Quarter

Nonperforming assets (“NPAs”) stayed relatively flat from the prior quarter and the ratio of nonperforming assets to total assets was 0.71% at March 31, 2016, which was down from 0.74% at December 31, 2015 and down from 1.21% a year ago.

“Although NPAs remained relatively flat from the prior quarter, we remain committed to further improving our asset quality ratios in 2016,” stated Mr. Hultquist.

The Company’s provision for loan and lease losses totaled $2.1 million for the first quarter of 2016, which was up $896 thousand from the prior quarter, and up $363 thousand compared to the first quarter of 2015. The increase in provision was primarily due to the strong loan growth experienced this quarter. As of March 31, 2016, the Company’s allowance to total loans and leases was 1.46%, which was up from 1.45% and 1.44% at December 31, 2015 and March 31, 2015, respectively.

The Company’s allowance to total nonperforming loans and leases was 229% at March 31, 2016, which was up from 223% at December 31, 2015, and up from 144% at March 31, 2015, as improved asset quality has resulted in an increased coverage ratio.

Capital Levels Remain Strong

The Company’s total risk-based capital ratio was 13.01%, the common equity tier 1 ratio was 10.46% and the tangible common equity to tangible common assets ratio increased to 8.74%, all as of March 31, 2016. For comparison, these respective ratios were 10.30%, 7.24% and 5.88% as of March 31, 2015, which was the quarter prior to the Company’s capital issuance and debt restructuring previously discussed. Both the total risk-based capital ratio and the common equity tier 1 ratio are well above the fully phased-in requirements under Basel III. The increase in the Company’s capital ratios was primarily due to the capital raise executed in the second quarter of 2015, as well as strong earnings in the second half of 2015 and the first quarter of 2016.

Continued Focus on Seven Key Initiatives

The Company continues to focus on the following initiatives in an ongoing effort to continue to improve profitability and drive increased shareholder value:

  • Target loans and leases to total assets ratio in the range of 70-75%
  • Continue to reduce wholesale funding to less than 15% of assets
  • Grow gains on the sale of USDA and SBA loans, and fee income on swaps, to a more significant and consistent component of core revenue
  • Grow wealth management net income by 15% annually
  • Eliminate identified noninterest expenses and manage annual expense growth
  • Return asset quality metrics to better than peer levels
  • Participate as an acquirer in the consolidation taking place in our markets to further boost ROAA, improve efficiency ratio, and increase EPS

About Us

QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company, which serves the Quad City, Cedar Rapids, Cedar Valley, 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 wealth management services. Quad City Bank & Trust Company also provides correspondent banking services. In addition, Quad City Bank & Trust Company engages in commercial leasing through its wholly owned subsidiary, m2 Lease Funds, LLC, based in Milwaukee, Wisconsin. With the acquisition of Community National Bancorporation in 2013, the Company 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 the Basel III regulatory capital reforms, 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; (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 Securities and Exchange Commission.

As of
March 31, December 31, March 31,
2016 2015 2015
(dollars in thousands, except share data)
CONDENSED BALANCE SHEETAmount% Amount%
Cash and due from banks$44,931 2% $41,742 2% $45,138 2%
Federal funds sold and interest-bearing deposits 57,229 2% 56,164 2% 31,154 1%
Securities 537,317 20% 577,109 22% 637,404 26%
Net loans/leases 1,846,428 70% 1,771,882 68% 1,630,568 65%
Core deposit intangible 1,422 0% 1,471 0% 1,621 0%
Goodwill 3,223 0% 3,223 0% 3,223 0%
Other assets 150,123 6% 141,607 6% 142,551 6%
Total assets$2,640,673 100% $2,593,198 100% $2,491,659 100%
Total deposits$1,989,573 75% $1,880,666 72% $1,734,269 70%
Total borrowings 347,901 13% 444,162 17% 569,404 23%
Other liabilities 68,056 3% 42,484 2% 36,990 1%
Total stockholders' equity 235,143 9% 225,886 9% 150,996 6%
Total liabilities and stockholders' equity$2,640,673 100% $2,593,198 100% $2,491,659 100%
SELECTED INFORMATION FOR COMMON STOCKHOLDERS' EQUITY
Common stockholders' equity (1)$235,143 $225,886 $150,996
Common shares outstanding 11,814,911 11,761,083 7,991,794
Book value per common share (1)$19.90 $19.21 $18.89
Tangible book value per common share (2)$19.51 $18.81 $18.29
Closing stock price$23.79 $24.29 $17.85
Market capitalization$281,077 $285,677 $142,654
Market price / book value 119.53% 126.47% 94.48%
Market price / tangible book value 121.94% 129.15% 97.61%
Tangible common equity / total tangible assets (TCE/TA) (3) 8.74% 8.55% 5.88%
REGULATORY CAPITAL RATIOS:
Total risk-based capital ratio 13.01% (4) 13.11% 10.30%
Tier 1 risk-based capital ratio 11.74% (4) 11.88% 9.00%
Tier 1 leverage capital ratio 9.85% (4) 9.75% 7.14%
Common equity tier 1 ratio 10.46% (4) 10.33% 7.24%
For the quarter ended March 31,
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY 2016 2015
Beginning balance$225,886 $144,079
Net income 6,373 4,178
Other comprehensive income, net of tax 2,525 2,221
Common cash dividends declared (471) -
Other (5) 830 518
Ending balance$235,143 $150,996
(1) Includes accumulated other comprehensive income (loss).
(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets.
(3) See GAAP to non-GAAP reconciliations.
(4) Subject to change upon final calculation for regulatory filings due after earnings release.
(5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.

As of
March 31, December 31, March 31,
2016 2015 2015
(dollars in thousands)
ANALYSIS OF LOAN DATAAmount% Amount% Amount%
Loan/lease mix:
Commercial and industrial loans$682,057 36% $648,160 36% $534,885 32%
Commercial real estate loans 766,159 41% 724,369 40% 709,682 43%
Direct financing leases 172,774 9% 173,656 10% 167,244 10%
Residential real estate loans 173,096 9% 170,433 10% 163,740 10%
Installment and other consumer loans 71,842 4% 73,669 4% 71,902 5%
Deferred loan/lease origination costs, net of fees 7,895 0% 7,736 0% 6,998 0%
Total loans/leases$1,873,823 100% $1,798,023 100% $1,654,451 100%
Less allowance for estimated losses on loans/leases 27,395 26,141 23,883
Net loans/leases$1,846,428 $1,771,882 $1,630,568
ANALYSIS OF SECURITIES DATA
Securities mix:
U.S. government sponsored agency securities$132,742 25% $213,537 37% $299,180 47%
Municipal securities 285,009 53% 280,203 49% 243,810 38%
Residential mortgage-backed and related securities 116,452 22% 80,670 14% 91,363 14%
Other securities 3,114 0% 2,699 0% 3,051 1%
Total securities$537,317 100% $577,109 100% $637,404 100%
ANALYSIS OF DEPOSIT DATA
Deposit mix:
Noninterest-bearing demand deposits$641,859 32% $615,292 33% $582,510 34%
Interest-bearing demand deposits 916,455 46% 886,294 47% 794,327 46%
Time deposits 331,786 17% 309,974 16% 279,660 16%
Brokered deposits 99,473 5% 69,106 4% 77,772 4%
Total deposits$1,989,573 100% $1,880,666 100% $1,734,269 100%
ANALYSIS OF BORROWINGS DATA
Borrowings mix:
FHLB advances$ 150,500 43% $ 151,000 34% $ 196,500 35%
Wholesale structured repurchase agreements 100,000 29% 110,000 25% 130,000 23%
Customer repurchase agreements 52,153 15% 73,873 16% 150,796 26%
Federal funds purchased 11,870 3% 70,790 16% 32,540 6%
Junior subordinated debentures 33,378 10% 38,499 9% 40,458 7%
Other - 0% - 0% 19,110 3%
Total borrowings$ 347,901 100% $ 444,162 100% $ 569,404 100%

As of
March 31, December 31, March 31,
2016 2015 2015
(dollars in thousands)
NONPERFORMING ASSETSAmount% Amount% Amount%
Nonaccrual loans/leases$10,772 58% $10,648 56% $14,529 48%
Accruing loans/leases past due 90 days or more 47 0% 3 0% 668 2%
Troubled debt restructures - accruing 1,157 6% 1,054 6% 1,348 5%
Total nonperforming loans/leases 11,976 64% 11,705 61% 16,545 55%
Other real estate owned 6,680 36% 7,151 37% 13,245 44%
Other repossessed assets 46 0% 246 1% 326 1%
Total nonperforming assets$18,702 100% $19,102 100% $30,116 100%
For the quarter ended March 31,
ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES 2016 2015
Beginning balance$ 26,141 $ 23,074
Provision charged to expense 2,073 1,710
Loans/leases charged off (868) (1,107)
Recoveries on loans/leases previously charged off 49 206
Ending balance$ 27,395 $ 23,883
Net charge-offs / average loans/leases 0.04% 0.06%
As of
March 31, December 31, March 31,
2016 2015 2015
ASSET QUALITY RATIOS
Nonperforming assets / total assets 0.71% 0.74% 1.21%
Allowance / total loans/leases (1) 1.46% 1.45% 1.44%
Allowance / nonperforming loans (1) 228.75% 223.33% 144.35%
(1) Upon acquisition per GAAP, the acquired loans are recorded at market value which eliminated the allowance and impacts these ratios.

For the Quarter Ended
March 31, December 31, March 31,
2016 2015 2015
(dollars in thousands, except per share data)
CONDENSED INCOME STATEMENT
Interest income $23,502 $22,910 $21,902
Interest expense 2,905 3,024 4,120
Net interest income 20,597 19,886 17,782
Provision for loan/lease losses 2,073 1,177 1,710
Net interest income after provision for loan/lease losses 18,524 18,709 16,072
Noninterest income 6,822 6,178 6,222
Noninterest expense 16,954 15,839 17,205
Net income before taxes 8,392 9,048 5,089
Income tax expense 2,019 2,263 911
Net income attributable to QCR Holdings, Inc. common stockholders $ 6,373 $ 6,785 $ 4,178
Earnings per common share:
Basic $ 0.54 $ 0.58 $ 0.52
Diluted $ 0.53 $ 0.57 $ 0.52
Earnings per common share (basic) LTM (1) $ 1.62 $ 1.64 $ 1.87
Weighted average common shares outstanding 11,793,620 11,744,495 7,975,910
Weighted average common and common equivalent shares outstanding 11,953,949 11,926,038 8,097,444
AVERAGE BALANCES
Assets $2,602,350 $2,611,276 $2,506,497
Loans/leases $1,833,950 $1,764,275 $1,635,705
Deposits $1,980,056 $1,978,737 $1,747,205
Total stockholders' equity $231,247 $223,553 $148,139
KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets (annualized) (2) 0.98% 1.04% 0.67%
Return on average total equity (annualized) (2) 11.02% 12.14% 11.28%
Price earnings ratio LTM (1) 14.69 x 14.81 x 9.55
Net interest margin (TEY) 3.59% 3.41% 3.25%
Efficiency ratio 61.83% 60.77% 71.68%
Gross loans and leases / total assets ratio 70.96% 69.34% 66.40%
Full-time equivalent employees 406 406 411
(1)LTM: Last twelve months.

ANALYSIS OF NET INTEREST INCOME AND MARGIN
For the Quarter Ended
March 31, 2016 December 31, 2015 March 31, 2015
Average BalanceInterest Earned or PaidAverage Yield or Cost Average BalanceInterest Earned or PaidAverage Yield or Cost Average BalanceInterest Earned or PaidAverage Yield or Cost
(dollars in thousands)
Securities (1) $550,371 $4,685 3.42% $572,531 $4,673 3.24% $625,834 $4,492 2.91%
Loans (1) 1,833,950 19,955 4.38% 1,764,275 19,330 4.35% 1,635,705 18,304 4.54%
Other 72,007 204 1.14% 128,691 228 0.70% 99,604 223 0.91%
Total earning assets (1)$2,456,328 $24,844 4.07% $2,465,497 $24,231 3.90% $2,361,143 $23,019 3.95%
Deposits $1,324,850 $1,290 0.39% $1,271,612 $1,199 0.37% $1,161,715 $1,072 0.37%
Borrowings 351,363 1,614 1.85% 374,602 1,825 1.93% 576,845 3,047 2.14%
Total interest-bearing liabilities$1,676,213 $2,904 0.70% $1,646,214 $3,024 0.73% $1,738,560 4,119 0.96%
Net interest income / spread (1) $21,940 3.37% $21,207 3.17% $18,900 2.99%
Net interest margin (1) 3.59% 3.41% 3.25%
(1) 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, 2016 December 31, 2015 March 31, 2015
ANALYSIS OF NONINTEREST INCOME(dollars in thousands)
Trust department fees $1,576 $1,455 $1,633
Investment advisory and management fees 658 721 710
Deposit service fees 931 1,003 901
Gain on sales of residential real estate loans 60 57 86
Gain on sales of government guaranteed portions of loans 879 405 71
Swap fee income 857 535 726
Securities gains, net 358 325 421
Earnings on bank-owned life insurance 394 443 479
Debit card fees 308 290 238
Correspondent banking fees 302 275 320
Participation service fees on commercial loan participations 211 218 222
Fee income from early termination of leases 12 46 85
Credit card issuing fees 137 134 134
Other 139 271 196
Total noninterest income $6,822 $6,178 $6,222
ANALYSIS OF NONINTEREST EXPENSE
Salaries and employee benefits $10,801 $10,258 $11,034
Occupancy and equipment expense 1,827 1,535 1,794
Professional and data processing fees 1,447 840 1,471
FDIC insurance, other insurance and regulatory fees 634 573 719
Loan/lease expense 163 281 303
Net cost of operation of other real estate 102 (4) 77
Advertising and marketing 386 532 418
Postage and communications 217 252 249
Stationery and supplies 165 171 143
Bank service charges 416 396 337
Losses on debt extinguishment, net 83 291 -
Correspondent banking expense 177 186 176
Other 536 528 484
Total noninterest expense $16,954 $15,839 $17,205

For the Quarter Ended
March 31, December 31, March 31,
SELECT FINANCIAL DATA - SUBSIDIARIES 2016 2015 2015
(dollars in thousands)
TOTAL ASSETS
Quad City Bank and Trust (1) $1,361,607 $1,336,572 $1,268,169
m2 Lease Funds, LLC 205,777 202,685 183,217
Cedar Rapids Bank and Trust 885,858 866,872 855,417
Rockford Bank and Trust 367,032 367,472 354,994
TOTAL DEPOSITS
Quad City Bank and Trust (1) $1,029,298 $931,689 $846,090
Cedar Rapids Bank and Trust 686,548 680,674 648,412
Rockford Bank and Trust 278,129 272,347 242,669
TOTAL LOANS & LEASES
Quad City Bank and Trust (1) $950,978 $887,882 $790,442
m2 Lease Funds, LLC 205,214 201,119 182,413
Cedar Rapids Bank and Trust 628,580 616,615 589,345
Rockford Bank and Trust 294,266 293,526 276,077
TOTAL LOANS & LEASES / TOTAL ASSETS
Quad City Bank and Trust (1) 70% 66% 62%
Cedar Rapids Bank and Trust 71% 71% 69%
Rockford Bank and Trust 80% 80% 78%
ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES
Quad City Bank and Trust (1) 1.31% 1.35% 1.45%
m2 Lease Funds, LLC 1.80% 1.87% 1.90%
Cedar Rapids Bank and Trust 1.66% 1.61% 1.44%
Rockford Bank and Trust 1.51% 1.45% 1.44%
NET INCOME (4)
Quad City Bank and Trust (1) $3,170 $4,080 $2,975
m2 Lease Funds, LLC (2) 660 865 651
Cedar Rapids Bank and Trust 3,052 3,137 2,169
Rockford Bank and Trust 610 452 465
RETURN ON AVERAGE ASSETS
Quad City Bank and Trust (1) 0.95% 1.18% 0.93%
Cedar Rapids Bank and Trust 1.39% 1.42% 1.03%
Rockford Bank and Trust 0.66% 0.50% 0.54%
NET INTEREST MARGIN PERCENTAGE (3)
Quad City Bank and Trust (1) 3.60% 3.38% 3.11%
Cedar Rapids Bank and Trust 3.75% 3.63% 3.62%
Rockford Bank and Trust 3.54% 3.43% 3.44%
(1)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.
(2)m2 Lease Funds, LLC net income is post-tax, using an estimated effective tax rate of 35%.
(3)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.
(4)Net income for the quarter ending March 31, 2016 included losses on debt extinguishment (pre-tax) totaling $759 thousand and $524 thousand, respectively,
at Quad City Bank and Trust and Cedar Rapids Bank and Trust. Net income for the quarter ending December 31, 2015 included losses on debt
extinguishment (pre-tax) totaling $591 thousand at Rockford Bank and Trust.

As of
March 31, December 31, March 31,
GAAP TO NON-GAAP RECONCILIATIONS 2016 2015 2015
(dollars in thousands, except per share data)
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)
Stockholders' equity (GAAP) $235,143 $225,886 $150,996
Less: Intangible assets 4,645 4,694 4,844
Tangible common equity (non-GAAP) $230,498 $221,192 $146,152
Total assets (GAAP) $2,640,673 $2,593,198 $2,491,659
Less: Intangible assets 4,645 4,694 4,844
Tangible assets (non-GAAP) $2,636,028 $2,588,504 $2,486,815
Tangible common equity to tangible assets ratio (non-GAAP) 8.74% 8.55% 5.88%
For the Quarter ended
March 31, December 31, March 31,
CORE NET INCOME (2) 2016 2015 2015
Net income (loss) (GAAP) $6,373 $6,785 $4,178
Less nonrecurring items (post-tax) (3):
Income:
Securities gains $233 $211 $274
Total nonrecurring income (non-GAAP) $233 $211 $274
Expense:
Losses on debt extinguishment $54 $189 $-
Accrual adjustments - (487) -
Total nonrecurring expense (non-GAAP) $54 $(298) $-
Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (2) $ 6,194 $ 6,276 $ 3,904
CORE EARNINGS PER COMMON SHARE (2)
Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (from above) $ 6,194 $ 6,276 $ 3,904
Weighted average common shares outstanding 11,793,620 11,744,495 7,975,910
Weighted average common and common equivalent shares outstanding 11,953,949 11,926,038 8,097,444
Core earnings per common share (non-GAAP):
Basic $ 0.53 $ 0.53 $ 0.49
Diluted $ 0.52 $ 0.53 $ 0.48
CORE RETURN ON AVERAGE ASSETS (2)
Core net income attributable to QCR Holdings, Inc. common stockholders (non-GAAP) (from above) $6,194 $6,276 $3,904
Average Assets $2,602,350 $2,611,276 $2,506,497
Core return on average assets (annualized) (non-GAAP) 0.95% 0.96% 0.62%
(1) 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.
(2) Core net income, core net income attributable to QCR Holdings, Inc. common stockholders, core earnings per common share and core return on average
assets are non-GAAP financial measures. The Company's management believes that these measure are important to investors as they exclude
non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods.
(3) Nonrecurring items (post-tax) are calculated using an estimated effective tax rate of 35%.

Contact: Todd A. Gipple Executive Vice President Chief Operating Officer Chief Financial Officer (309) 743-7745

Source:QCR Holdings, Inc.