DELIVERING
ON OUR VISION
Virtually every bank claims to be a “Community Bank”,
Further supporting our local Community Banks is a
and many create a definition to support their banking
Board of Directors at each banking charter that consists
model. At QCR Holdings, Inc. we believe that the
of community leaders who share this drive to make a
definition of a true Community Bank is quite clear –
difference to our clients and the communities in which
and that it is based on the needs of the Communities
they live and work.
and Clients that we serve. Further, we have spent the
entire 19 year history of our Company focused on
being the “Relationship Driven Organization” that
is the heart of our QCR Holdings business model, a
business model that provides each QCR Holdings
entity with the autonomy to tailor products, services
and decisions unique to the clients and communities
that it serves.
By staying true to our business model of delivering local
decisions that impact clients and communities, and
delivering support services that do not directly impact
clients in a centralized and efficient manner, we have
allowed Quad City Bank & Trust, Cedar Rapids Bank
& Trust, and Rockford Bank & Trust to create a strong
“Community Bank” brand in their respective markets
and to become the bank of choice for clients that value
Each of our clients “need” something different from
a strong relationship with their bank.
Each member of our QCR Holdings team will continue to
focus on creating meaningful and lasting relationships
with our clients as we work hard to create significant
long-term value for our shareholders.
their banking relationship. Our people have the
experience and talent to build strong relationships with
our clients, to understand their unique hopes, dreams,
challenges & opportunities as well as they do, and to
bring them decisions and solutions that help them
succeed. Our local bankers in the Quad Cities, Cedar
Rapids and Rockford communities are empowered to
tailor products, services and decisions to the clients and
communities that they serve, creating the customized
“relationship based” service that drives our Company.
Our local bankers are supported by our QCR Holdings
Group Operations team that delivers operational
services in a centralized and efficient manner. The
members of the Group Operations team share the same
passion for building relationships with, and exceeding
the expectations of, their internal “clients” at each of
our entities, allowing each of our member Community
Banks to possess the resources of a much larger financial
institution.
3
QCR Holdings, Inc. 2012 Annual Report
A MESSAGE FROM OUR CHAIRMAN
Community banking: successful in the past, successful today
As our industry has consolidated over the past ten years
and will continue to be successful in the future. As is readily
from approximately 15,000 depository institutions to the
apparent from this year’s Annual Report, our company
7,500 today, those remaining successful and well managed
message continues to center around community banking
community banks have continued to survive and prosper.
and the manner in which the QCR Holdings companies bring
Experts tell us that depository institutions will again reduce
that community banking advantage to the marketplace.
in half over the next ten years to approximately 3,750
I believe as you read our CEO messages and client testimonials
consolidation would mean the elimination of community
in this year’s Annual Report you will see how our people are
banking as we know it today and the transfer of those assets
institutions. It could make one wonder if the pending
bringing the community bank definition to life.
Since the inception of the banking industry in America,
well managed community banks have certainly been more
successful than our brethren at the large multi-national and
super regional banks. In many instances, I believe these
larger entities have taken on risk that negatively affected
the stakeholders in their companies and quite frankly, even
our nation. One has only to look back to the financial crisis of
2008 to bring that point home.
We define a community bank as:
“Serving the needs of our clients
and the communities in which
we live and work by developing
strong relationships and using these
relationships to help our clients
succeed and our communities thrive.”
to the large money center and super regional banks. Au
Contraire. Not in QCR Holdings lifetime, as we plan to be a
community bank player for many years to come! As long
as we at QCR Holdings continue to deliver to our markets
the community banking model we are working so hard to
protect - using the very best people and making financial
decisions locally - we will continue to be very successful in
the years ahead to the benefit of all of the employees and
stakeholders of QCR Holdings.
In my view, fiscal 2012 results reflect the positive position our
Company holds and continues to build in the communities
we serve, using our community banking model. The
exemplary work put forth by our outstanding management
team and their entire staff do make a difference, and the
Board of Directors again commends them for a job well done.
As we at QCR Holdings head into 2013 and beyond, and
we look at the continued development of well-managed
community banking opportunities, as I have said in past
years and continue to say today, I believe more than ever that
I really like the way we are positioned for the future growth of
QCR Holdings. Stick around; it’s been an interesting journey
our first twenty years. The best is yet to come.
James J. Brownson
Chairman of the Board,
QCR Holdings, Inc.
4
QCR Holdings, Inc. 2012 Annual Report
QCR Holdings, Inc. will be the premier provider of
financial services to businesses and individuals for whom
relationships matter, in markets where we can excel.
- Our Mission
Summary of Financial Results 2007 - 2012
(in thousands)
Net interest income
Non-interest income
Non-interest expense
Pre-tax pre-provision
Provision expense
2007
2008
2009
2010
2011
2012
$34,352
$44,623
$50,662
$49,864
$54,145
$57,649
13,499
13,931
15,547
15,406
17,462
16,621
(35,734)
(42,334)
(46,937)
(48,549)
(50,993)
(52,259)
12,117
16,220
19,272
16,721
20,614
22,011
(2,336)
(9,222)
(16,976)
(7,464)
(6,616)
(4,371)
Income before taxes
9,781
6,998
2,296
9,257
13,998
17,640
Income taxes
(2,893)
(1,735)
(247)
(2,449)
(3,868)
(4,534)
Income from continuing operations
6,888
5,263
2,049
6,808
10,130
13,106
Income (loss) from discontinued operations
(723)
1,734
-
-
-
-
Net income
6,165
6,997
2,049
6,808
10,130
13,106
Less: net income attributable to non controlling interests
388
288
277
221
438
488
Net income attributable to QCR Holdings, Inc.
$5,777
$6,709
$1,772
$6,587
$9,692
$12,618
5
QCR Holdings, Inc. 2012 Annual Report
TO OUR SHAREHOLDERS,
QCR Holdings had another record year in 2012 and we continue to believe our
model has everything to do with these sound results. The model we are proud
to call “The Local Community Bank Advantage” continued to differentiate us in
our market places. Throughout the year, new clients came to our doors seeking
exceptional, personalized service and advice – frustrated by regional call centers
and 800 numbers provided by our competitors. Existing clients continued to value
the opportunity to sit one-on-one with their local banker – working together to
build a relationship that will endure throughout their lifetimes.
“The Local Community Bank Advantage” works because it is delivered locally by the
best people - our 379 dedicated QCR Holdings employees. We could not be prouder
of the financial results this year however those results simply provide a glimpse into
the true advantage our people provide day in and day out. Our people are not only
talented bankers, they are generous with their talents in our communities. At QCR
Holdings, we strongly believe that the strength of our Company will depend on
the strength of the communities that we serve, and to that end, our employees
are volunteering on a daily basis to make their towns a better place in which to
live and work.
QCR HOLDINGS, INC. ENTITY WIDE STRATEGIC INITIATIVES
Our QCR Holdings, Inc. seven strategic initiatives continue to lead our decision
making and our work. We are pleased to report that in 2012, our staff and Boards:
Nonperforming assets were down 27% or $10.9 million from the prior year. The
ratio of nonperforming assets to total assets declined to 1.41% at December 31,
2012 – down from 2.06% of total assets at December 31, 2011.
Net interest income grew 6% in 2012. For the year ended December 31, 2012, net
interest income was $57.6 million, an increase of $3.5 million or 6%, over the year
ended December 31, 2011.
We remain committed to a strong capital position – not only with regard to total
capital, but with regard to mix and cost as well. We remain strongly committed to
our long-term capital plan of self-generating the capital necessary to grow tangible
common equity and to redeem the remaining Small Business Lending Fund
(“SBLF”) preferred stock without a dilutive common equity raise. We successfully
executed on this plan in the second quarter of 2012 when we redeemed $10.2
million of the $40.1 million in SBLF preferred stock.
Tangible common equity has grown from 3.56% of total tangible assets at
December 31, 2010 to 3.85% at December 31, 2011 and to 4.02% at December 31,
2012. With the future conversion of the Series E Preferred Stock to common stock
(which is possible after June 30, 2013), and assuming we achieve the requirements
to force conversion, our tangible common equity would increase to 5.25% of total
tangible assets on a proforma basis.
QCR HOLDINGS, INC. STRATEGIC ADVANTAGES
Prioritized growth in earnings and earnings per share,
over growth in assets
Worked to preserve capital and increase tangible common equity, to allow
for further redemption of SBLF Capital without the need for a dilutive
common equity raise
Continued to maintain adequate liquidity and leverage any excess
to its best use
During 2012, we continued to execute on our strategy of being a relationship
driven organization. With demand for loans and leases curtailed due to the
economic climate, we remained focused on developing relationships with
new clients and expanding relationships with existing clients. In addition, we
strategically expanded resources where we identified some very profitable niches
that will enhance our earnings in years to come, thereby allowing us to counter
margin compression and weak loan demand.
Continued to improve asset quality
CORRESPONDENT BANKING DIVISION
Delivered on the financial successes associated with a relationship
driven organization® - improved pricing, client penetration, and earnings
Improved stock price and shareholder value
Enhanced our Investor Relations strategies and messaging
2012 RESULTS AND HIGHLIGHTS
ANNUAL EARNINGS UP 30% FROM PRIOR YEAR
Despite the continued uncertain economic climate and challenging regulatory
environment, our teams executed on our strategic initiatives for another record
year.
For 2012, our annual earnings were up 30% from the prior year. For the year ended
December 31, 2012, net income attributable to QCR Holdings was $12.6 million,
resulting in diluted earnings per share of $1.85 after preferred stock dividends of
$3.5 million. For the same period in 2011, we reported net income of $9.7 million, or
diluted earnings per share of $0.92 after preferred stock dividends of $5.3 million.
The 2011 dividends included a one-time deemed dividend of $1.2 million as a
result of our repurchase of all of the preferred shares issued to the U.S. Treasury
under the Troubled Asset Relief Program (“TARP”).
For 2012, we grew non-interest bearing core deposits 26%, successfully shifting the
deposit mix from brokered and other time deposits, along with wholesale funding,
which in turn helped to drive down our cost of funds. Non-interest bearing deposits
were successfully grown $93.5 million this year, this on top of 29% growth in 2011.
Utilizing our expert and geographically dispersed team of correspondent bankers
to seize opportunities, we were able to increase non-interest bearing deposits
significantly again this year, and grow non-interest income as well. We added 24
new correspondent banking relationships in 2012. When including such services as
credit cards and loans, we now service 206 Correspondent Banks.
WEALTH BUILDERS DIVISION
Many successful banks have a strong “Wealth Management Division”. Utilizing
our strengths in this area led to the creation of the “Wealth Builders Division” that
focuses on the continuum of services that can be provided to clients within our
Company – Trust, Investments, Financial Planning, and Family Office. We continue
to successfully grow this division as it further bolsters our relationship style of
banking. This strategy adds non-interest income to our banks and provides great
opportunities for cross selling as well. The division at Quad City Bank & Trust has
been a stronghold in the Quad Cites market since the bank opened its doors. We
are successfully leveraging knowledge and resources of the Quad Cities staff to
help grow the Cedar Rapids and Rockford market presence.
m2 LEASE FUNDS
m2 Lease Funds is now a wholly owned subsidiary of Quad City Bank & Trust,
offering leased equipment options not only locally to the clients of all three banks,
but nationwide as well. Leasing can be a favorable option to ownership and has
gained good traction in this economy. m2 reported record earnings in 2012 of $3.4
million, an increase of 63% over the prior year. Total leased assets finished 2012 at a
record $104 million, an 11% increase over 2011.
•
•
•
•
•
•
•
6
QCR Holdings, Inc. 2012 Annual Report
CREDIT QUALITY EXPERIENCE AND KNOWLEDGE
Our results in terms of credit quality have been better than most of our peers
during this challenging economic time. We are very pleased with the declining
trend in nonperforming assets over the past several years. A top priority is weekly
loan committee meetings at every charter, partnered with careful review by our
Boards of Directors.
LIVING THE BRAND
CONSOLIDATED EARNINGS
(in thousands)
2009
2010
2011
2012
Quad City Bank & Trust *
$ 6,801
$ 6,839
$ 8,838
$ 10,732
Cedar Rapids Bank & Trust
2,339
3,573
5,200
5,881
Rockford Bank & Trust
(2,218)
811
412
593
Parent Co. & Eliminations
(5,150)
(4,636)
(4,758)
(4,588)
Consolidated Earnings
$ 1,772
$ 6,587
$ 9,692
$ 12,618
We continue to believe our people are the key differentiator in each of our markets.
As such, we measure employee performance utilizing a metric we call “Living the
Brand”. Living the Brand means living our Brand Promise – making sure that each
employee’s performance is so good that our clients (internal and external), will
always experience great relationships, service and advice.
* Includes m2 Lease Funds.
RESULTS BY ENTITY
Quad City Bank & Trust – Under the leadership of President and CEO, John Anderson,
the Company’s first subsidiary bank (1994), grew total consolidated assets to $1.18
billion at December 31, 2012. The bank continues to have success in growing its
Correspondent Banking business as non-interest bearing Correspondent deposits
grew $55 million, or 37%, to $204 million year over year. Quad City Bank & Trust
realized record net income of $10.7 million for the year ended December 31, 2012,
which is an increase of $1.9 million, or 21% over 2011.
Cedar Rapids Bank & Trust – President and CEO Larry Helling, one of the founders
of Cedar Rapids Bank & Trust (2001), led his team to record net income of $5.9
million for the year ended December 31, 2012, which is a 13% increase over the
$5.2 million net income for 2011. Total assets at December 31, 2012 finished at
$625.7 million, up 12% or $65.6 million from the end of 2011. The bank grew and
diversified its securities portfolio through increased investments in tax-exempt
municipal securities. The majority of these securities are located in or near our
existing markets with strong underwriting conducted before investment.
Rockford Bank & Trust – Led by President and CEO, Tom Budd, Rockford Bank &
Trust (2005) reported net income for 2012 of $593 thousand. By comparison, the
bank reported net income of $412 thousand for 2011. Total assets finished the
year at $313.8 million, which was an increase of $19.4 million, or 7% over 2011.
Continuing to take advantage of the financial market disruption in Rockford is key
as the Rockford community begins to rebound from the recession.
EXPANDING OUR FOOTPRINT
On February 14, 2013 we announced the signing of a definitive agreement to
acquire Community National Bancorporation and Community National Bank,
headquartered in Waterloo, Iowa.
Community National Bank has 8 banking locations, approximately $290 million
in assets and $248 million in deposits as of December 31, 2012.
The synergies between both entities’ approach to customer and community
service are key components in this strategic merger. We are excited about
this merger which is subject to approval by banking regulators, approval
by Community National shareholders, and certain closing conditions. The
transaction is expected to close in the second quarter of 2013.
QCR HOLDINGS, INC. - STRATEGIC DIRECTION FOR 2013 AND BEYOND
During 2012 we built on many strategies that will position us for 2013 and beyond.
We believe our team is geared to generate improved earnings at all entities. We are
focused on doing all that we can to generate increased earnings per share (EPS) –
prioritizing EPS over growth in assets.
We will continue to work hard to preserve and grow your investment, and at
the same time look for opportunities for growth in the niches we have outlined
previously. We are energized by the possibilities that these niches and our markets
create for us, and we look forward to helping all of our clients realize their financial
dreams.
The best part of our jobs is that we have the opportunity to work with 379 talented
and hardworking individuals who do their very best every day to serve each other
and their clients. We are also supported by remarkable local Board members in
each of our communities. These community leaders generously lend their time and
expertise – serving on our Boards, our committees, and advocating for us within
their local communities. Their contributions are priceless.
We continue to recognize two specific areas where we need to make meaningful
progress: tangible common equity and our efficiency ratio. Execution of our
strategic direction will allow us to improve both.
We will continue to enhance liquidity and to preserve asset quality. We made great
strides in 2012 with core deposit growth and we will continue that focus in 2013 and
beyond. Our process for monitoring credit quality is top notch and will remain so.
Loan demand will likely mirror the economic recovery and we are poised to lend
right alongside of a recovery. We have strategically aligned ourselves to serve as
experts on SBA and USDA Lending. We hope to continue as market innovators in
those areas of lending.
We are hopeful for a future when bank stocks find favor, but we are ready to stand
on our own merits as a valued business serving its local markets. We are hopeful
that our persistence and record earnings are reflected in our price very soon. We
thank you for your patience and support.
We look forward to helping our clients realize their financial dreams – it’s what we
do at our community banks, and what we do locally. We are a relationship driven
organization®, and truly believe we can make a difference in doing just that.
Douglas M. Hultquist
President and Chief Executive Officer, QCR Holdings, Inc.
Todd A. Gipple
Executive Vice President, Chief Operating Officer and
Chief Financial Officer, QCR Holdings, Inc.
7
QCR Holdings, Inc. 2012 Annual Report
QCR Holdings, Inc. Board of Directors
1
7
8
3
13
9
11
8
QCR Holdings, Inc. 2012 Annual Report
6
12
10
5
4
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
Douglas M. Hultquist
President and Chief Executive Officer,
QCR Holdings, Inc.
James J. Brownson
Chairman of the Board, QCR Holdings, Inc.
President, W.E. Brownson Co.
Pat S. Baird
Vice Chairman of the Board, QCR Holdings, Inc.
Retired President and Chief Executive Officer,
AEGON USA, LLC
Lindsay Y. Corby
Principal, BXM Holdings, Inc.
Todd A. Gipple
Executive Vice President, Chief Operating Officer
and Chief Financial Officer, QCR Holdings, Inc.
Larry J. Helling
President and Chief Executive Officer,
Cedar Rapids Bank and Trust Company
Mark C. Kilmer
President, The Republic Companies
John K. Lawson
Retired Executive, Deere & Company
Chuck M. Peters
President and Chief Executive Officer,
The Gazette Company
Ronald G. Peterson
Retired Executive, First State Bank of Illinois
Donna J. Sorensen, J.D.
President, Sorensen Consulting
John D. Whitcher
Vice President and General Counsel,
Viking Chemical Company
Marie Z. Ziegler
Vice President and Deputy Financial Officer,
Deere & Company
2
9
QCR Holdings, Inc. 2012 Annual Report
QCR Holdings, Inc. Executive Management Team
11
3
9
14
15
4
12
10
QCR Holdings, Inc. 2012 Annual Report
5
1
8
13
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Douglas M. Hultquist
President and Chief Executive Officer
Todd A. Gipple
Executive Vice President,
Chief Operating Officer and
Chief Financial Officer
John H. Anderson
President and Chief Executive Officer,
Quad City Bank and Trust Company /
Chief Deposit Officer, QCR Holdings, Inc.
Thomas D. Budd
President and Chief Executive Officer,
Rockford Bank and Trust Company
Charles S. Bullock
Executive Vice President,
Chief Operating Officer,
Rockford Bank and Trust Company
Jill A. DeKeyser
Senior Vice President,
Director of Human Resources
John R. Engelbrecht
Chief Executive Officer, m2 Lease Funds, LLC
Shawna M. Graham
Senior Vice President,
Director of Risk Management
Larry J. Helling
President and Chief Executive Officer,
Cedar Rapids Bank and Trust Company /
Executive Vice President, Chief Lending Officer,
QCR Holdings, Inc.
John R. McEvoy
Executive Vice President,
Chief Operations Officer and Cashier,
Quad City Bank & Trust Company
John A. Rodriguez
Executive Vice President,
Deposit Operations and Information Services
William M. Tank
Executive Vice President, Chief Credit Officer
M. Randolph Westlund
Executive Vice President,
Chief Investment Officer
Cathie S. Whiteside
Executive Vice President,
Corporate Strategy, Human Resources &
Branding
15.
Michael J. Wyffels
Senior Vice President, Chief Technology Officer
2
6
7
10
11
QCR Holdings, Inc. 2012 Annual Report
$12.6 MILLION 2012 RECORD EARNINGS
A 30% INCREASE OVER 2011
ASSET GROWTH
(IN THOUSANDS)
$200,000
,
7
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,
BOOK VALUE VS. FAIR MARKET VALUE
COMMON STOCK (IN THOUSANDS)
TOTAL METROPOLITAN STATISTICAL AREA
(MSA) DEPOSITS (JUNE 30, 2012) (IN THOUSANDS)
$8,000,000
$7,000,000
$6,000,000
$5,000,000
FAIR MARKET VALUE
BOOK VALUE
$90
$70
$50
$30
$10
,
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Population
(April 1, 2011)
380,000 258,000 349,000
I
N
O
L
L
$58 M
2012 NET INTEREST INCOME
INCREASED 6% OVER 2011
I
2,094,000,000
$
IN TOTAL ASSETS AT DECEMBER 31, 2012
26% INCREASE
NON-INTEREST BEARING
DEPOSITS FINISHED
2012 AT $451 MILLION
266 WEALTH MANAGEMENT
RELATIONSHIPS ADDED
WITH OVER $1.75 BILLION
UNDER MANAGEMENT
12
QCR Holdings, Inc. 2012 Annual Report
QCR Holdings, Inc.
Group Operations
Management Team
Todd A. Gipple
Executive Vice President, Chief Operating Officer
and Chief Financial Officer
Jill A. DeKeyser
Senior Vice President,
Director of Human Resources
Beth L. Easterla
Vice President, Deposit Operations and
Electronic Banking Manager
Kathleen M. Francque
Senior Vice President, Correspondent Banking
Pamela J. Goodwin
Vice President, Loan Operations Manager
Shawna M. Graham
Senior Vice President,
Director of Risk Management
R. Timothy Harding
Senior Vice President, Director of Internal Audit
John R. McEvoy
Executive Vice President,
Chief Operations Officer and Cashier
John R. Oakes
Vice President,
Controller and Director of Financial Reporting
Victor J. Quinn
Executive Vice President,
Client Relations and Business Development
John A. Rodriguez
Executive Vice President,
Deposit Operations and Information Services
Shellee R. Showalter
Senior Vice President, Director of Compensation
Michael J. Wyffels
Senior Vice President, Chief Technology Officer
CONSOLIDATED DEPOSITS
(in millions)
12.31.10
12.31.11
12.31.12
Non-interest bearing demand deposits
$ 277
$ 357
$ 451
Interest bearing demand deposits
Time deposits
Brokered time deposits
460
313
65
510
293
45
587
291
45
TOTAL CONSOLIDATED DEPOSITS
$ 1,115
$ 1,205
$ 1,374
TOTAL ASSETS (in millions)
12.31.12
12.31.11
12.31.10
$2,094
$1,967
$1,837
$1,800
$1,900
$2,000
NET LOANS/LEASES (in millions)
12.31.12
12.31.11
12.31.10
$1,267
$1,182
$1,152
$1,100
$1,200
$1,300
DEPOSIT MARKET SHARE (JUNE 30, 2012)
Quad Cities
9.53%
Rank #3 of 40
Cedar Rapids
7.43%
Rank #4 of 42
Rockford
4.19%
Rank #8 of 26
13
QCR Holdings, Inc. 2012 Annual Report
Quad City Bank and Trust Company
Quad City Bank and Trust Company
Directors
Senior Managers
John H. Anderson
President and Chief Executive Officer,
Quad City Bank and Trust Company
Mark C. Kilmer
Chairman of the Board,
Quad City Bank and Trust Company
President, The Republic Companies
Michael A. Bauer
Consultant, Co-Founder of QCR Holdings, Inc.
Douglas M. Hultquist
President and Chief Executive Officer,
QCR Holdings, Inc.
James J. Brownson
President, W.E. Brownson Co.
Todd A. Gipple
Executive Vice President, Chief Operating Officer
and Chief Financial Officer, QCR Holdings, Inc.
John H. Harris, II
Retired Former President, Star Forms, Inc. and
Isabel Bloom, LLC
Larry J. Helling
President and Chief Executive Officer,
Cedar Rapids Bank and Trust Company
Edwin A. Maxwell
Anesthesia & Analgesia, P.C.
Linda K. Neuman
Attorney, Retired Iowa Supreme Court
Ronald G. Peterson
Retired Executive, First State Bank of Illinois
Victor J. Quinn
Executive Vice President, Client Relations and
Business Development, Quad City Bank and
Trust Company
Marc C. Slivken, D.D.S.
Retired CEO, Kimberly Park Dental
Marie Z. Ziegler
Vice President and Deputy Financial Officer,
Deere & Company
John H. Anderson
President and Chief Executive Officer
Nick W. Anderson
Assistant Vice President and Controller
Cindy M. Carlson
Executive Vice President, Wealth Builders Group
Laura L. Ekizian
Senior Vice President, Private Banking
Kathleen M. Francque
Senior Vice President, Correspondent Banking
Therese K. Gerwe
Vice President, Treasury Management
Deborah C. Gillum
1st Vice President, Retail Banking
Anne E. Howard
Human Resources Manager
David C. Howell
1st Vice President, Wealth Builders Group
Rick J. Jennings
Senior Vice President, Senior Trust Officer
Jeffrey M. Lockwood
Executive Vice President, Chief Lending Officer
Peter J. McAndrews
1st Vice President, Retail, Real Estate and
Consumer Loans
John R. McEvoy
Executive Vice President, Chief Operations
Officer and Cashier
Victor J. Quinn
Executive Vice President, Client Relations and
Business Development
Shellee R. Showalter
Senior Vice President, Director of Compensation
Cathie S. Whiteside
Executive Vice President, Corporate Strategy and
Branding
Michael J. Wyffels
Senior Vice President, Chief Technology Officer
14
QCR Holdings, Inc. 2012 Annual Report
JOHN ANDERSON
President and Chief Executive Officer,
Quad CIty Bank & Trust
Our Team understands exactly what it means to be
a part of Quad City Bank & Trust, and once again we
are pleased to share with each of you a testimonial
from one of our valued clients on how we have jointly
benefited each other’s mission.
This year Quad City Bank & Trust made a long term
commitment to the Quad City Symphony by becoming
the exclusive partner of the Riverfront Pops concert.
Nearly 9,000 Quad Citians enjoyed a beautiful evening
along the grand Mississippi River, treated to the music
of ABBA. With this partnership we are able to support
music education programs for low income youth, as
we recognize the vital role music education can play in
success in school, life and in our society.
I am proud but humbled to serve alongside a Team of
bankers, who prove every day that being a Community
Banker is not just a job, but a privilege.
Recently one of our clients shared with us a story.
They stated that while one of our team members
was celebrating with them in the expansion of their
business, they felt compelled to introduce our team
member, not as their banker, but as the individual who
helped make their dreams come true. What a blessing it
is to be known as dream makers.
Thank you for your support. We simply would not be
able to live the mission of our company without it.
As the Quad Cities premier community bank, we
continue to carefully maneuver through rough
seas, with a growing but weak economy, coupled
with the on-going mixed messages coming out of
Washington on taxes, regulation and economic
policy.
How does a community bank such as Quad City Bank &
Trust respond? We respond by focusing on what we do
best, serving the community in which we are grateful
to be a part.
In 2012, the Team at Quad City Bank & Trust did so
in the following ways:
7,781 hours of community service,
a record number
$10.7 million in net income,
a record result and our second record year in a row
9% growth in loan and leases,
a sign of commitment to our community
As a community bank, headquartered in Bettendorf,
Iowa, our Team of bankers live and practice our
brand promise each and every day. Because of this
commitment to excellence, our clients, community,
and shareholders see firsthand why we are the financial
institution they can Bank on.
15
QCR Holdings, Inc. 2012 Annual Report
“During our 75 years in Davenport,
Iowa, our philosophy has been to support
local business and institutions. Friends
become customers and customers
become friends.
Our partnership with Quad City Bank &
Trust is a shining example; it’s mutually
beneficial and profitable. Quad City
Bank & Trust, a place where a handshake
still means something.”
K.V. Dahl III | Dahl Ford
I N V E S T I N G I N T H E Q U A D C I T I E S A R E A
7 ,781
EMPLOYEE HOURS VOLUNTEERED
Equa ting to 149. 6 ho urs a week o r
21.3 hours e ver y d ay to area non-p ro fi t s.
17
QCR Holdings, Inc. 2012 Annual Report
Cedar Rapids Bank and Trust Company
Cedar Rapids Bank and Trust Company
Directors
Senior Managers
Larry J. Helling
President and Chief Executive Officer,
Cedar Rapids Bank and Trust Company
Donna J. Sorensen, J.D.
Chair of the Board,
Cedar Rapids Bank and Trust Company
President, Sorensen Consulting
Pat S. Baird
Retired President and Chief Executive Officer,
AEGON USA, LLC
Loren L. Coppock
Chairman of the Board,
TrueNorth Companies, LLC
Larry J. Helling
President and Chief Executive Officer
Gary M. Becker
Senior Vice President, Commercial Banking
Kevin D. Bruns
Senior Vice President, Wealth Management
Patricia L. Ellison
Senior Vice President, Chief Credit Officer
James D. Klein
Senior Vice President, Retail Banking
Deborah J. Lindberg Gertsen
Senior Vice President, Trust and Investments
Todd A. Gipple
Executive Vice President, Chief Operating Officer
and Chief Financial Officer, QCR Holdings, Inc.
J. Mitchell McElree
Executive Vice President,
Managing Director, Specialty Finance Group
Ann M. Lipsky
President, Smulekoff Investment Co /
President, Smulekoff’s Furniture
Chuck M. Peters
President and Chief Executive Officer,
The Gazette Company
Randy A. Ramlo
President and CEO, United Fire Group, Inc.
Fred G. Timko
Chairman of the Board, Point Builders, LLC
A. James Tinker
President Emeritus, Mercycare Service
Corporation
Dana L. Nichols
Executive Vice President, Chief Lending Officer
John A. Rodriguez
Executive Vice President, Operations and Cashier
Shelly A. Strellner
Senior Vice President, Private Banking
Timothy J. White
Senior Vice President, Business Development,
Specialty Finance Group
18
QCR Holdings, Inc. 2012 Annual Report
LARRY HELLING
President and Chief Executive Officer,
Cedar Rapids Bank & Trust
As I look back at our history and the long string of
successes since our charter was formed in 2001, it really
comes down to one thing…building trust. Our staff
has spent the past eleven years building trust with our
clients and our community. People who visit the bank
see and feel the difference every day when they walk in
and meet with our staff. That long term focus is paying
dividends for our company and our shareholders.
Trust is built over time with demonstrations of
conviction and confidence. Our clients have placed
their trust in us by allowing us to guide them through
these tumultuous financial times.
One of our core
beliefs is anchored
by trust: Healthy
relationships are
built when all parties
are committed to
the best interests of
the other.
Despite the historically low rate environment, a
contentious election and a soft economy, CRBT had
a successful year. We continue to look for innovative
strategies to grow our franchise with the goal of
becoming the number one bank in our market.
There is no denying that technological advances
continue to reshape how we do business today. While
it’s becoming increasingly important to be able to do
your banking on a hand-held device, we cannot forget
that banking relationships began with handshakes;
knowing your banker, and your banker knowing you
by name. Our value is not determined by how many
“friends” have “liked” us, but by how many of our clients
refer their friends and family to us because of the
relationship that’s been established.
Local community banks have distinct advantages over
the big bank competitors. Decisions are made locally
by experienced bankers who live in and understand
the specific needs of our community. Our children go
to the same schools, we attend the same churches, and
we patronize the same businesses as our clients. Our
clients know that they can turn to us when a creative
solution is needed.
Our involvement in the community of Cedar Rapids
was recently recognized by the Eastern Iowa Chapter
of the Association of Fundraising Professionals as the
2012 Outstanding Philanthropic Organization. Each
year, the AFP honors individuals and organizations
for their tireless work and dedication to philanthropy
that improves the quality of life in their communities
and around the world. CRBT staff donates a great
deal of time and energy to organizations that help
our community, and we are committed to making a
positive difference in the lives of the people who live
here. The results of this commitment are deep and
lasting relationships that will allow us to continue
growing our franchise and produce rewarding results
for our shareholders.
19
QCR Holdings, Inc. 2012 Annual Report
“The team at CRBT offers a unique
blend of business savvy and an
unparalleled level of customer service.
Given the level of expertise CRBT brings
to the table, CRBT is much more than
just a place to bank. We consider CRBT
our business partner.”
Tom Pientok | President & CEO
Apache, Inc.
I N V E S T I N G I N C E D A R R A P I D S , I A
4 ,795
EMPLOYEE HOURS VOLUNTEERED
…for the advancement of educa tion, i nc ome
and health throug h United Way.
…for helping children ac hi e ve suc c es s in l ife
through Bi g Brothers Bi g S isters.
…and by educating students about wor kforce
readin ess, entrepreneurshi p and fi nanc ia l
literac y with Junior Achie vement .
21
QCR Holdings, Inc. 2012 Annual Report
Rockford Bank and Trust Company
Rockford Bank and Trust Company
Directors
Senior Managers
Thomas D. Budd
President and Chief Executive Officer
Charles S. Bullock
Executive Vice President, Chief Operating Officer
Brian J. DeBenedetto
Senior Vice President and Trust Manager
Lori L. Diaz
Senior Vice President, Treasury Management
James M. Hansberry
Executive Vice President, Wealth Management
Anthony A. Moczynski
Senior Vice President, Chief Credit Officer
Brenda S. Nayonis
Senior Vice President, Operations and Cashier
Dale R. Shillady
Senior Vice President, Business Development
Karl R. Swanson
Senior Vice President, Commercial Banking
Thomas D. Budd
President and Chief Executive Officer,
Rockford Bank and Trust Company
John D. Whitcher
Chairman of the Board, Rockford Bank and Trust
Company / Vice President and General Counsel,
Viking Chemical Company
Michael A. Bauer
Consultant, Co-Founder of QCR Holdings, Inc.
Charles E. Box
Former Chairman, Illinois Commerce Commission
Former Mayor, Rockford, Illinois
Charles S. Bullock
Executive Vice President, Chief Operating Officer,
Rockford Bank and Trust Company
Todd A. Gipple
Executive Vice President, Chief Operating Officer
and Chief Financial Officer, QCR Holdings, Inc.
Monica B. Glenny, CPA, CMA
President, Datacraft, Inc.
James P. Hamilton
President, MRV Foundation Inc.
Douglas M. Hultquist
President and Chief Executive Officer,
QCR Holdings, Inc.
Dana S. Kiley, Jr.
Vice President,
Coyle-Varland Insurance Agency, Inc.
George T. Ralph
Managing Member, GTR Realty Advisors, LLC
M. Shawn Way
President and Chief Executive Officer,
Milestone, Inc.
22
QCR Holdings, Inc. 2012 Annual Report
THOMAS BUDD
President and Chief Executive Officer,
Rockford Bank & Trust
Community banking is a general industry term
used to describe banks whose primary focus is the
communities in which they operate. We define it
further by believing it represents an experience for
clients and employees that is centered on the principle
of building and nurturing long term relationships
and demonstrating a commitment to improving our
community.
As a community bank, we
believe that banking will
always be a relationship
business and that the
quality and depth of the
relationship between
our team and our clients
is at the center of the
“experience”.
We also believe that furthering our mission and
achieving sustained success as a community bank is
rooted in our culture. The experience of our clients is
driven largely by their perception of our culture and
how that culture is exhibited daily by our people. We
strive for a culture that encourages employees to take
pride in their contribution to the bank we’ve built.
We create an environment where our employees can
be proactive, creative, and make decisions that are
mutually beneficial to the bank and our clients.
The experience our culture creates starts with how
the client is greeted when they enter our facilities or
how they are addressed at the teller line. Our culture
stresses that we serve all of the client’s needs without
regard for who gets the credit. To build a relationship
based on trust, we want our clients to feel that we
are transparent in our assessment of their needs and
sincere in our guidance. Most importantly, we want our
clients to trust that we will be there to assist when they
are most in need.
Rockford Bank & Trust, as well as our clients, can
succeed only if our community is well balanced and
positioned for the future. During 2012, we supported
over 60 organizations through donations and
sponsorships. We were also supportive through our
time and talents with our employees volunteering in
excess of 1,500 hours on local boards and charitable
events.
As we enter our eighth year in 2013, we’re committed
to furthering our culture and demonstrating that
commitment in the depth and quality of our
relationships with our clients, employees, and our
community. Only then can we deliver the returns
our shareholders expect. It means providing an
environment where our employees can flourish and
be proud of their bank. It also means providing the
products and services to clients that are in the best
interest of their relationship with the bank from a long
term perspective.
Finally, we are honored to have Rockford Bank & Trust
as our name because we are proud of the community
we represent. We also understand that it comes with a
responsibility to exhibit the highest level of integrity as
we work and live in the Rockford Community.
23
QCR Holdings, Inc. 2012 Annual Report
“Partnership, trust, teamwork, support, courtesy
and excitement – these are all words that
immediately come to mind when I think about my
relationship with Rockford Bank and Trust.
Beginning with our first meeting, it was apparent
that Rockford Bank and Trust shared the same core
values that aligned with our vision for the growth
of our business and support of the community.
Last year our business grew into 3 additional states
and 5 additional markets while increasing revenue
by over 80%. None of our growth would have
been possible without the help of our friends at
Rockford Bank and Trust!”
Andy Schultz NREMTP, CCEMTP
CEO/Owner | ATS Medical Services
I N V E S T I N G I N R O C K F O R D , I L
1 ,519
EMPLOYEE HOURS VOLUNTEERED
…from helping adults and children wit h ment al
disabilities at M ilestone, I nc. to fig hti ng hu nger
with R ock R i ver Val le y Food Pantr y.
25
QCR Holdings, Inc. 2012 Annual Report
m2 Lease Funds, LLC
Directors and Senior Managers
John R. Engelbrecht
Chief Executive Officer, m2 Lease Funds, LLC
Ron D. Orndorff
Chairman of the Board, m2 Lease Funds, LLC
Retired Chairman and President, M&I Leasing Corporation
John H. Anderson
Director, m2 Lease Funds, LLC
President and Chief Executive Officer,
Quad City Bank and Trust Company
Richard W. Couch
President and Chief Operating Officer
Michael A. Hatfield
Director, m2 Lease Funds, LLC
Retired Senior Vice President and Secretary,
M & I - Marshall & Illsley Corporation
Larry J. Helling
Director, m2 Lease Funds, LLC
President and Chief Executive Officer,
Cedar Rapids Bank and Trust Company
Mark R. Hogan
Director, m2 Lease Funds, LLC
Senior Advisor, BMO/Harris Bank
Douglas M. Hultquist
Director, m2 Lease Funds, LLC
President and Chief Executive Officer, QCR Holdings, Inc.
Christine D. Kennedy
Chief Financial Officer
William M. Tank
Director, m2 Lease Funds, LLC
Executive Vice President, Chief Credit Officer, QCR Holdings, Inc.
26
QCR Holdings, Inc. 2012 Annual Report
JOHN ENGELBRECHT
Chief Executive Officer,
m2 Lease Funds, LLC
By thinking locally, but acting nationally,
m2 Lease Funds continues to differentiate
itself from its peers.
During 2012, m2 Lease Funds opened an office in
Charlotte, NC to join existing offices in the Quad Cities,
Cedar Rapids, Minneapolis, Columbia, SC and Milwaukee.
By philosophy, m2 Lease Funds is a general equipment
lessor, however, strategically m2 has found it beneficial
to identify attractive niches where we can further
differentiate ourselves from our competition. Some of
these niches are marine, telecommunication, health
care, manufacturing, broadcasting, food processing,
baking, hospitality and specialty software.
None of our success, record earnings, or growth would
be possible without the dedication, hard work and
commitment from the team of m2 Lease Funds employees.
2012 was a very good year for m2 Lease Funds. We are
pleased to announce that in 2012, m2 Lease Funds
achieved record pre-tax earnings of more than $3.3
million, an increase of 63% over the previous year.
Additionally in 2012, m2 achieved a milestone of
reaching $100 million in leases outstanding.
In 2012, m2 also celebrated its 15 year anniversary and
its 7 year anniversary as part of the QCR Holdings family.
When m2 was started in 1998, it was our goal to create
a different and better style of equipment leasing and
finance experience for our customers; to create a culture
of professionalism, quick turn around times, creative
solutions and an overall hassle free, straightforward
business experience. And by adhering to those
fundamentals for the past 15 years, m2 has grown
primarily through referrals. We currently have thousands
of customers across the United States. We believe
that our results demonstrate that those strategies
and philosophies are sound and timeless and we will
continue adhering to them for the foreseeable future.
27
QCR Holdings, Inc. 2012 Annual Report
“Please let me personally thank m2 for helping SPS
achieve an outstanding business year in 2012. Even
though we got started together late in the year, the
finish you helped us put together resulted in the best
year ever for SPS! We have enjoyed working with
m2, and in all cases found you to be knowledgeable,
savvy, smart and timely in your help in financing our
programs at SPS.
We have not yet come upon a business challenge that
we have not been successfully able to overcome. We
feel that m2 truly cares about our business, and we are
not just another account.
That adds tremendous value to the relationship. We
look forward to more of the same and a tremendous
level of growth in our business relationship in 2013.”
Mark Shelton | President
Strategic Print Solutions, Inc.
I N V E S T I N G I N B R O O K F I E L D , W I
275
EMPLOYEE HOURS VOLUNTEERED
An average of over 21 hours per empl oyee to a rea
organizations such as the YM CA , A mer ica n R ed Cro ss,
and B oys and Gir ls Cl ub.
29
QCR Holdings, Inc. 2012 Annual Report
Stock Price Year-End 2003 - 2012
$25
$20
$15
$10
$5
12.31.03
12.31.04
12.30.05
12.29.06
12.31.07
12.31.08
12.31.09
12.31.10
12.30.11
12.31.12
Total Consolidated Deposits 2006 / 2012
December 31, 2006 -
Total $875.5 MM
December 31, 2012 -
Total $1374.1 MM
Non Interest Bearing Demand
$124.2 MM or 14%
Interest Bearing
$334.0 MM or 38%
CD's
$417.3 MM or 48%
Retail: $345.8 MM or 40%
Brokered: $71.4 MM or 8%
Non Interest Bearing Demand
$450.7 MM or 33%
Interest Bearing
$587.2 MM or 43%
CD's
$336.2 MM or 24%
Retail: $290.9 MM or 21%
Brokered: $45.3 MM or 3%
30
QCR Holdings, Inc. 2012 Annual Report
QCR Holdings, Inc. - Facility Map
FACILITY
STREET ADDRESS
CITY
STATE
ZIP
DATE OPENED
Quad City Bank & Trust
2118 Middle Road
Bettendorf
Iowa
52722
January 1994
Quad City Bank & Trust
4500 N. Brady Street
Davenport
Iowa
52806
July 1996
Quad City Bank & Trust
3551 7th Street
Moline
Illinois
61265
February 1998
Quad City Bank & Trust
5405 Utica Ridge Road
Davenport
Iowa
52807
October 2000
Cedar Rapids Bank & Trust
500 First Avenue NE
Cedar Rapids
Iowa
52401
July 2005/
September 2001*
Rockford Bank & Trust
127 N. Wyman Street
Rockford
Illinois
61101
January 2005
Quad City Bank & Trust
1700 Division Street
Davenport
Iowa
52804
March 2005
Cedar Rapids Bank & Trust
5400 Council Street NE
Cedar Rapids
Iowa
52402
June 2005
Rockford Bank & Trust
4571 Guilford Road
Rockford
Illinois
61107
November 2006
* Former location
31
QCR Holdings, Inc. 2012 Annual Report
QCR Holdings, Inc. Consolidated Financial Highlights
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
As of
December 31,
2012
December 31,
2011
(dollars in thousands, except share data)
Total liabilities and stockholders' equity
$
CONDENSED BALANCE SHEET
Cash, federal funds sold, and interest-bearing deposits
Securities
Net loans/leases
Goodwill
Other assets
Total assets
Total deposits
Total borrowings
Other liabilities
Total stockholders' equity
SELECTED INFORMATION FOR COMMON STOCKHOLDERS' EQUITY
Common stockholders' equity *
Common shares outstanding
Book value per common share **
Tangible book value per common share **
Closing stock price
Market capitalization
Market price / book value
Market price / tangible book value
Tangible common equity *** / total tangible assets
REGULATORY CAPITAL RATIOS:
Total risk-based capital ratio
Tier 1 risk-based capital ratio
Tier 1 leverage capital ratio
CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY
Beginning balance
Net income
Other comprehensive income (loss), net of tax
Common cash dividends declared, $0.08 per share
Preferred cash dividends declared ****
Partial redemption of Series F Preferred Stock (SBLF)
Proceeds from issuance of Series F Preferred Stock (SBLF)
Redemption of Series D Preferred Stock (TARP)
Redemption of common stock warrants (TARP)
Purchase of noncontrolling interests
Other *****
Ending balance
%
5%
29%
60%
0%
6%
100%
61%
30%
1%
8%
100%
Amount
$
Amount
$
110,488
602,239
1,267,462
3,223
110,318
2,093,730
1,374,114
547,758
31,424
140,434
2,093,730
%
5%
29%
61%
0%
5%
100%
66%
26%
1%
7%
100%
$
$
$
$
$
$
87,271
4,918,202
17.74
17.08
13.22
65,019
74.50%
77.39%
4.02%
100,673
565,229
1,181,956
3,223
115,529
1,966,610
1,205,458
590,603
26,116
144,433
1,966,610
$
$
$
$
$
$
$
81,047
4,758,189
16.60
15.92
9.10
43,300
54.81%
57.18%
3.85%
$
$
12.71%
11.27%
8.13%
13.84%
12.24%
8.70%
2012
$
2011
$
144,433
13,106
(48)
(381)
(3,496)
(10,223)
-
-
-
(4,782)
1,825
140,434
132,571
10,130
4,051
(373)
(5,284)
-
39,997
(38,237)
(1,100)
-
2,678
144,433
$
$
* Includes noncontrolling interests and accumulated other comprehensive income.
** Includes accumulated other comprehensive income and excludes noncontrolling interests.
*** Tangible common equity is defined as total common stockholders' equity excluding equity of noncontrolling interests and 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.
**** In 2011, includes $1.25 million of accelerated discount accretion as a result of redeeming Series D Preferred Stock.
***** Includes mostly common stock issued for options exercised and employee stock purchase plans, as well as stock-based compensation.
32
QCR Holdings, Inc. 2012 Annual Report
Amount
% Change
0%
-16%
6%
-34%
12%
-5%
2%
26%
17%
29%
11%
30%
-34%
107%
102%
101%
QCR Holdings, Inc. Consolidated Financial Highlights
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
For the Year Ended
December 31,
2012
December 31,
2011
(dollars in thousands, except per share data)
CONDENSED INCOME STATEMENT
Interest income
Interest expense
Net interest income
Provision for loan/lease losses
Net interest income after provision for loan/lease losses
Noninterest income
Noninterest expense
Net income before taxes
Income tax expense
Net income
Less: Net income attributable to noncontrolling interests
Net income attributable to QCR Holdings, Inc.
Amount
$
$
$
77,376
19,727
57,649
4,371
53,278
16,621
52,259
17,640
4,534
13,106
488
12,618
$
$
$
77,723
23,578
54,145
6,616
47,529
17,462
50,993
13,998
3,868
10,130
438
9,692
Less: Preferred stock dividends ***
Net income attributable to QCR Holdings, Inc. common stockholders
$
3,496
9,122
$
5,284
4,408
Earnings per share attributable to QCR Holdings, Inc.:
Basic
Diluted
$
$
1.88
1.85
$
$
0.93
0.92
Weighted average common shares outstanding
Weighted average common and common equivalent shares outstanding
4,844,776
4,919,559
4,724,781
4,789,026
AVERAGE BALANCES
Assets
Loans/leases
Deposits
Total stockholders' equity
Common stockholders' equity
KEY PERFORMANCE RATIOS
Return on average assets (annualized) **
Return on average common equity (annualized) *
Return on average total equity (annualized) **
Price earnings ratio
Net interest margin (TEY)
Nonperforming assets / total assets
Net charge-offs / average loans/leases
Allowance / total loans/leases
Allowance / nonperforming loans
Efficiency ratio
Full-time equivalent employees
$
$
$
$
$
2,025,693
1,219,623
1,310,360
141,793
84,159
$
$
$
$
$
1,907,038
1,177,105
1,209,787
136,700
75,702
x
0.62%
10.84%
8.90%
7.07
3.10%
1.41%
0.27%
1.55%
78.47%
70.36%
356
x
0.51%
5.82%
7.09%
9.78
3.08%
2.06%
0.70%
1.56%
58.70%
71.21%
355
* The numerator for this ratio is "Net income attributable to QCR Holdings, Inc. common stockholders."
** The numerator for this ratio is "Net income attributable to QCR Holdings, Inc."
*** During the third quarter of 2011, the preferred stock dividends include a one-time deemed dividend of $1.25 million resulting from the Company's repurchase
of preferred shares from the U.S. Treasury.
(TEY) Above: Tax Equivalent Yield. For nontaxable securities, interest earned and yields are determined on a tax equivalent basis using 34% tax rate for each period presented.
33
QCR Holdings, Inc. 2012 Annual Report
QCR Holdings, Inc. Consolidated Financial Highlights
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
As of
(dollars in thousands)
ANALYSIS OF LOAN DATA
Nonaccrual loans/leases
Accruing loans/leases past due 90 days or more
Troubled debt restructures - accruing
Other real estate owned
Other repossessed assets
Total nonperforming assets
Net charge-offs
Loan/lease mix:
Commercial and industrial loans
Commercial real estate loans
Direct financing leases
Residential real estate loans
Installment and other consumer loans
Deferred loan/lease origination costs, net of fees
Total loans/leases
Less allowance for estimated losses on loans/leases
Net loans/leases
ANALYSIS OF SECURITIES DATA
Securities mix:
U.S. government sponsored agency securities
Residential mortgage-backed and related securities
Municipal securities
Other securities, including held-to-maturity
Total securities
ANALYSIS OF DEPOSIT DATA
Deposit mix:
Noninterest-bearing demand deposits
Interest-bearing demand deposits
Time deposits
Brokered time deposits
Total deposits
ANALYSIS OF BORROWINGS DATA
Borrowings mix:
FHLB advances
Wholesale structured repurchase agreements
Customer repurchase agreements
Federal funds purchased
Junior subordinated debentures
Other
Total borrowings
$
3,235
$
8,192
$
$
December 31,
2012
Amount
$
$
17,932
159
7,300
3,955
212
29,558
394,244
593,979
103,686
115,582
76,720
3,176
1,287,387
19,925
1,267,462
$
$
$
$
338,609
163,601
97,615
2,414
602,239
450,660
587,201
290,933
45,320
1,374,114
$
$
202,350
130,000
104,943
66,140
36,085
8,240
547,758
%
60%
1%
25%
13%
1%
100%
31%
46%
8%
9%
6%
0%
100%
57%
27%
16%
0%
100%
33%
43%
21%
3%
100%
37%
24%
19%
12%
7%
1%
100%
December 31,
2011
Amount
$
$
18,995
1,111
11,904
8,386
109
40,505
350,794
577,804
93,212
98,107
78,223
2,605
1,200,745
18,789
1,181,956
$
$
$
$
428,955
108,854
25,689
1,731
565,229
76%
19%
5%
0%
100%
357,184
510,788
292,575
44,911
1,205,458
$
$
204,750
130,000
110,236
103,300
36,085
6,232
590,603
%
47%
3%
29%
21%
0%
100%
29%
48%
8%
8%
7%
0%
100%
30%
42%
24%
4%
100%
35%
22%
19%
17%
6%
1%
100%
$
$
$
$
34
QCR Holdings, Inc. 2012 Annual Report
QCR Holdings, Inc. Consolidated Financial Highlights
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
ANALYSIS OF NET INTEREST INCOME AND MARGIN
December 31, 2012
December 31, 2011
For the Year Ended
Average Balance
Interest Earned
or Paid
Average
Yield or Cost
Average
Balance
Interest Earned
or Paid
Average
Yield or Cost
(dollars in thousands)
Securities *
Loans
Other
Total earning assets
Deposits
Borrowings
Total interest-bearing liabilities
Net interest income / spread
Net interest margin
$
$
603,568
1,219,623
73,007
1,896,198
898,321
545,079
1,443,400
$
$
$
14,268
63,364
891
78,523
$
$
6,219
13,508
19,727
$
58,796
2.36%
5.20%
1.22%
4.14%
0.69%
2.48%
1.37%
2.77%
3.10%
$
501,470
1,177,705
94,774
1,773,949
$
$
893,677
533,994
1,427,671
$
$
$
12,344
64,808
1,055
78,207
$
8,939
14,639
23,578
$
54,629
2.46%
5.50%
1.11%
4.41%
1.00%
2.74%
1.65%
2.76%
3.08%
* Includes nontaxable securities. Interest earned and yields on nontaxable securities are determined on a tax equivalent basis using 34% tax rate for each period presented.
QCR HOLDINGS, INC.
CONSOLIDATED FINANCIAL HIGHLIGHTS
(Unaudited)
ANALYSIS OF NONINTEREST INCOME
Trust department fees
Investment advisory and management fees
Deposit service fees
Gain on sales of residential real estate loans
Gain on sales of government guaranteed portions of loans
Earnings on cash surrender value of life insurance
Credit card fees, net of processing costs
Subtotal
Securities gains
Losses on other real estate owned, net
Other *
Total noninterest income
ANALYSIS OF NONINTEREST EXPENSE
Salaries and employee benefits
Occupancy and equipment expense
Professional and data processing fees
FDIC and other insurance
Loan/lease expense
Advertising and marketing
Postage and telephone
Stationery and supplies
Bank service charges
Subtotal
Prepayment fees on Federal Home Loan Bank advances
Other-than-temporary-impairment losses on securities
Other
Total noninterest expense
For the Year Ended
December 31,
2012
December 31,
2011
% Change
(dollars in thousands)
$
$
3,632
2,361
3,486
1,388
1,070
1,609
599
14,145
105
(1,333)
3,704
16,621
33,275
5,635
4,318
2,331
1,042
1,445
960
541
854
50,401
-
62
1,796
52,259
$
$
$
$
$
3,369
2,109
3,493
999
1,566
1,446
500
13,482
1,473
(375)
2,882
17,462
30,365
5,298
4,461
2,698
2,161
1,289
938
517
726
48,453
832
119
1,589
50,993
$
$
$
$
$
8%
12%
0%
39%
-32%
11%
20%
5%
-93%
256%
28%
-5%
10%
6%
-3%
-14%
-52%
12%
2%
5%
18%
4%
-100%
-48%
13%
2%
* Includes pre-tax gain of $580 thousand on the sale of 2.25% equity interest in a company providing data processing services
to merchant credit card acquiring businesses. The sale occurred during the third quarter of 2012.
35
QCR Holdings, Inc. 2012 Annual Report
stock listing information
The common stock of QCR Holdings, Inc. is traded on the NASDAQ Global Market under the symbol QCRH.
COMMON STOCK
Calendar 2012
High
Low
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
Calendar 2011
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
Calendar 2010
4th Quarter
3rd Quarter
2nd Quarter
1st Quarter
$ 15.50
$ 11.40
14.98
14.50
12.45
High
12.62
10.70
8.50
Low
$ 9.23
$ 8.42
9.93
9.47
8.67
High
8.70
7.29
7.22
Low
$ 9.52
$ 6.75
10.97
14.40
10.00
8.93
8.73
7.65
DIVIDEND INFORMATION
Record Date
Payment Date
Amount
12.22.12
06.21.12
12.26.11
06.23.11
12.22.10
06.21.10
01.07.13
07.06.12
01.06.12
07.07.11
01.07.11
07.06.10
$ .04
.04
.04
.04
.04
.04
Annual Meeting of Stockholders
Corporate Counsel
Lane & Waterman, Davenport, IA
Barack Ferrazzano Kirschbaum & Nagelberg LLP
Chicago, IL
Quad City Bank & Trust Locations
2118 Middle Road
Bettendorf, IA 52722
4500 N. Brady Street
Davenport, IA 52806
3551 Seventh Street
Moline, IL 61265
5405 Utica Ridge Road
Davenport, IA 52807
1700 Division Street
Davenport, IA 52804
Cedar Rapids Bank & Trust Locations
500 First Avenue NE, Suite 100
Cedar Rapids, IA 52401
5400 Council Street NE
Cedar Rapids, IA 52402
Rockford Bank & Trust Locations
127 N. Wyman Street
Rockford, IL 61101
4571 Guilford Road
Rockford, IL 61107
m2 Lease Funds, LLC
175 N. Patrick Blvd., Suite 140
Brookfield, WI 53045
Internet Information
Information on subsidiaries’ history,
locations, products and services can be
accessed on the internet at:
www.qcbt.com
www.crbt.com
www.rkfdbank.com
www.m2lease.com
The Annual Meeting of the Stockholders of
QCR Holdings, Inc. will be held:
May 1, 2013 at 10:00 am
i wireless Center
1201 River Drive
Moline, IL 61265
Annual Report on Form 10-K
Copies of the QCR Holdings, Inc. annual
report on Form 10-K and exhibits filed with
the Securities and Exchange Commission
(SEC), are available to stockholders without
charge by accessing our internet site at
www.qcrh.com or by writing:
John R. Oakes
Vice President, Controller and
Director of Financial Reporting
QCR Holdings, Inc.
3551 Seventh Street
Moline, IL 61265
309.743.7761
The SEC maintains an internet site that
contains reports, proxy, and information
statements and other information about
issuers that file electronically with the SEC.
The address of that site is: www.sec.gov.
Stock Transfer Agent
Inquiries regarding stock transfer, registration,
lost certificates, or changes in name and
address should be directed to the stock
transfer agent and registrar by writing:
IST Shareholder Services
433 S. Carlton Avenue
Wheaton, IL 60187
Investor Information
Stockholders, investors, and analysts interested
in additional information may contact:
Todd A. Gipple
Executive Vice President, Chief Operating
Officer and Chief Financial Officer
QCR Holdings, Inc.
3551 Seventh Street
Moline, IL 61265
309.743.7745
Independent Auditor
McGladrey LLP, Davenport, IA
36
QCR Holdings, Inc. 2012 Annual Report