MAKING FINANCIAL
DREAMS A REALITY
2019 ANNUAL REPORT
A MESSAGE FROM
OUR CHAIRMAN
One of the most difficult challenges a company fac-
es throughout its existence is leadership transition.
For a board, it is one of its most important respon-
sibilities and the succession process can create ten-
sion, uncertainty, and be downright risky. I’m very
pleased to report that we successfully transitioned
your Company’s leadership in May of 2019.
As you are aware, the shareholder performance and
operating metrics of QCR Holdings, Inc. showed
strong improvement throughout this transition pe-
riod and for all of 2019. I would like to express the
Board’s appreciation to our past President and CEO
Doug Hultquist for giving the Board plenty of ad-
vance notice and good advice throughout this pro-
cess.
As important, I would like to say thanks to our new
CEO Larry Helling and President Todd Gipple for
their tremendous leadership as they kept the com-
pany moving forward in all areas with virtually no
disruption.
The Board was also supportive of management’s
difficult decision to exit the Rockford market. For
various reasons, it was not possible for our Rock-
ford bank charter to grow and achieve the operat-
ing performance enjoyed elsewhere in our group of
companies. We look forward to carefully redeploy-
ing the proceeds in other growth opportunities.
Finally, I am writing this message to you a couple of
weeks into the global COVID-19 situation. As of this
moment, the level of uncertainty as to depth and
duration is very high. We believe our business mod-
el of putting customers first and local decision-mak-
ing is the best way to serve customers during the
uncertainty. Our organization is financially strong,
our employees are strong, and you may not hear
this from other companies, but we believe our cus-
tomers are strong. We will work collaboratively with
all of our stakeholders to see this thing through.
On behalf of the entire board, we thank you for be-
ing shareholders and please stay safe.
PATRICK J. BAIRD
Chair of the Board
QCR HOLDINGS, INC.
1
“…that’s the power
of a company built
on relationships.”
For QCR Holdings, Inc., 2019 was truly an incredible year. Not only did we achieve record net
income, but we exceeded our financial targets in almost all areas of the business. Our strong
results were driven by continued strong growth in loans, deposits and fee income along with
exceptional credit quality.
We believe that’s the power of a company built on relationships. When a team embraces a com-
mon mission, vision and values - our employees, customers, communities and shareholders win.
As we start 2020 with some uncertainties due to the COVID-19 Pandemic, we remain optimistic
about our future. We believe our recent performance puts us in a great position to come out
of a volatile environment with positive results. We are steadfast in our focus on simple growth
strategies across all charters, providing best in class service through operational excellence and
helping our clients make their financial dreams come true.
We’re truly excited by what’s ahead in 2020 and beyond.
Larry J. Helling
Chief Executive Officer
QCR Holdings, Inc.
Todd A. Gipple
President
QCR Holdings, Inc.
2
QCR HOLDINGS, INC. A CLEAR
MISSION, VISION, AND VALUES
Our Mission, Vision and Values serve
as our North Star. It’s the definition
of where we are headed and who we
are as a company.
With the growth of our business, which
included several acquisitions, it felt like
the right time to take a step back to eval-
uate our Mission, Vision and Values with a
fresh perspective. The good news is that
with some minor adjustments, our values
still hold true with one distinct addition to
the list – Inclusion.
We added “Inclusion” because we be-
lieve a diverse, equitable and inclusive
culture strengthens our ability to attract
and retain the best people and makes us
a better company. With this change and
the adoption of our Diversity, Equity and
Inclusion policy, our goal is to create a
place where our people feel respected
and valued every day.
It will help make us a stronger and better
performing company long into the future,
but it’s also the right thing to do.
OUR
MISSION
OUR
VISION
OUR
VALUES
We make
Exceptional
Passion
financial dreams
people providing
Accountability
a reality.
extraordinary
Achievement
performance for our
Collaboration
clients, shareholders
Innovation
and communities.
Inclusion
QCR HOLDINGS, INC.
3
OUR PERFORMANCE
A RECORD BREAKING YEAR
For QCR Holdings, Inc., 2019 was our best year ever. Over the course of the
year, we remained focused on our strategies and we were able to capitalize
on the ongoing economic strength and healthy business conditions across
our footprint. Our strong financial performance was highlighted by record net
income and a solid increase in adjusted earnings per share.
2019 PERFORMANCE HIGHLIGHTS
• Adjusted net income increased 26%
• Tangible book value per share grew by 17%
• After adjusting for one-time items, revenue grew by 26%, driven by
record swap fee income and higher net interest income
• Both loans and deposits grew organically, by over 10% for the year
• Continued to gain market share across our charters, evidence that
our clients value relationship-based community banking
• Expanded our net interest margin during the second half of the year
as our initiatives in this area gained traction
• Our credit quality remains excellent with net charge-offs near zero
and nonperforming assets declining again in 2019
4
QCR HOLDINGS, INC. ROCKFORD BANK & TRUST DIVESTITURE
Strategically, it was an important year for us as well. On November 30, 2019, we exited the Rockford, Illi-
nois market with the sale of Rockford Bank & Trust (RB&T). We were unable to reach acceptable levels of
scale in that market and, consequently, experienced unsatisfactory levels of profitability. We recorded a
$12.3 million gain on the sale pre-tax.
Divesting of RB&T enables us to redeploy capital in our other more profitable markets to help drive con-
tinued organic and acquisitive growth. The transaction also bolstered our capital levels and we expect to
meaningfully improve several of our key performance metrics going forward as a result of the sale.
*Comparison data excludes RB&T where noted.
SUMMARY OF FINANCIAL RESULTS (in thousands)
2015
2016
2017
2018
2019
Net interest income
$76,296
$94,517
$116,065
$142,395
$ 155,559
Non-interest income
24,364
31,037
30,482
41,541
78,768
Non-interest expense
(73,192)
(81,486)
(97,424)
(119,143)
(155,234)
Pre-tax pre-provision net income
27,468
44,068
49,123
64,793
79,093
Provision for loan/lease losses
(6,871)
(7,478)
(8,470)
(12,658)
(7,066)
Net income before taxes
20,597
36,590
40,653
52,135
72,027
Income taxes
Net income
(3,669)
(8,903)
(4,946)
(9,015)
(14,619)
$16,928
$27,687
$35,707
$43,120
$ 57,408
QCR HOLDINGS, INC.
5
OUR PERFORMANCE
BY THE NUMBERS
ADJUSTED
NET INCOME
GROWTH
ADJUSTED
EARNINGS PER
SHARE GROWTH
TANGIBLE BOOK
VALUE PER
SHARE GROWTH
ORGANIC
LOAN
GROWTH
2019
ANNUAL KEY METRICS
WEALTH
MANAGEMENT
NET INCOME
GROWTH
NPAs/ASSETS
RETURN ON
AVERAGE ASSETS
RETURN ON
AVERAGE TOTAL
EQUITY
BOOK VALUE VS.
FAIR MARKET VALUE
YEAR-END / COMMON STOCK (MILLIONS)
BOOK VALUE
FAIR MARKET VALUE
ASSET GROWTH
(MILLIONS)
(1) Includes acquisition of Community State Bank
(2) Includes acquisition of Guaranty Bank & Trust
(3) Includes merger with Springfield Bancshares / acquisition of Bates Companies
* Excluding Rockford Bank & Trust
$920
$685
$610
$468
$1000
$800
$600
$400
$200
$0
2016
2017
2018
2019
2016(1)
2017(2)
2018(3)
2019
$800
$600
$400
$200
$0
6
QCR HOLDINGS, INC. GROSS LOANS/LEASES (MILLIONS)
12.31.19
12.31.18
12.31.17
$3,681
$3,320
$2,608
* Excluding RB&T
$0
$2,000
$4,000
Gross Loans/Leases
(12/31/19; $MM; EXCLUDES DEFERRED ORIGINATION COSTS)
Direct
Financing Leases
$87.9
2%
Residential
Real Estate
$239.9
7%
Installment
& Consumer
$109.3
3%
Commercial
Real Estate
$1,736.4
47%
$1,507.8
41%
Commercial
& Industrial
Total: $3,681.3
(12/31/19)
Total Deposits
(12/31/19; $MM)
Brokered Deposits
$155.0
4%
Time Deposits
TOTAL DEPOSITS (MILLIONS)
12.31.19
12.31.18
12.31.17
$3,911
$3,545
$571.3
15%
$777.2
20%
Noninterest-bearing
$2,884
Interest-bearing
$2,407.5
61%
* Excluding RB&T
$0
$2,000
$4,000
Total: $3,911.0
(12/31/19)
TOTAL ASSETS (MILLIONS)
12.31.19
12.31.18
12.31.17
* Excluding RB&T
$4,909
$4,441
$3,521
$0
$2,500
$5,000
QCR HOLDINGS, INC.
7
OUR PEOPLE
CEDAR RAPIDS BANK & TRUST
Starting as a teller right out of college, Brittney immediately knew helping
people was her passion. Today, she manages retail banking at five branches
and leads a team of about 50 people.
“I love retail and consumer banking because of the people,” she said. “I
thrive from helping clients and employees reach their goals.”
Early in her career, her desire to get involved in the community led her to
start teaching financial literacy to people who had recently filed bankruptcy.
She started with small, monthly presentations and 12 years later she’s given
hundreds of presentations to more than 1,000 people in the area.
“It’s so important to know how to make the right decisions to create a stable
and secure financial future, from the time you start making money,” she
said. “Starting off creating financial goals is the key to financial success and I
enjoy helping people start this process.”
Her new goal? Help her team develop their careers by learning to teach the
courses, too!
BRITTNEY
SVP, Retail Banking Manager
Cedar Rapids Bank & Trust
SFC BANK
When you grow up in Brandsville, Missouri (population 187), you know
everyone in town. Maybe that’s why Joe was drawn to banking – it’s an
industry where relationships matter.
“At the heart of it, you’re tuning in to the needs of the families and
businesses you support,” said Joe. “And in a big ‘small town’ like
Springfield, there are more than 40 different banks represented so your
reputation is important.”
After spending nearly a decade working for national and regional com-
mercial banks, Joe brought his skill set to SFC Bank in order to better the
community. “I have a love and admiration for business and I enjoy learning
the intimate inner-workings of different kinds of companies,” he said. “That
knowledge helps me to continuously refine my approach in how I seek
business and grow my portfolio. The entrepreneurial nature of my job is
something I am very fond of.”
8
JOE
VP, Commercial Banking
SFC Bank
QCR HOLDINGS, INC. m2 LEASE FUNDS
Jean is certainly not afraid to try new things – like the time her hus-
band surprised her with a kayak for Mother’s Day 15 years ago. “I
thought, ‘what am I going to do with that?’” she said. “And now it’s
one of my favorite hobbies.”
When she joined m2 Lease Funds 12 years ago, she found herself
again, venturing into new territory. “I didn’t know equipment leasing
was a thing,” she explained. “Now, I help the team put together loans
and leases for everything from phone systems to large construction
vehicles.”
Helping businesses of all sizes is very rewarding but the thing she
enjoys most is the people and the culture. “It’s a great place to work.
We all work together toward the same goal, and that’s easy when you
really like the people you work with,” she said.
JEAN
Lease Admin Coordinator/Team Lead
m2 Lease Funds
QUAD CITY BANK & TRUST
At QCBT, the correspondent banking strategy is a bit of an enigma in
the banking world. “We offer the same services as any of our charters,
but our customers are financial institutions so we operate like a small
bank within QCBT,” explained Kate. “We help our customers be success-
ful in their business but we also have the advantage of understanding
their customers’ needs, which is a unique value for them.”
With degrees in English and Fashion Journalism, banking was not her
planned career path, and yet it’s truly been a perfect fit.
“I’m driven by stories and people. I want to learn as much as I can about
my clients, so it’s not unusual to know about their grandkids or vacation
plans. That’s important when you’re building relationships,” she said.
“It feels great to know we’re making financial dreams a reality for these
smaller banks as well as their customers. Having that kind of impact on
people’s lives is rewarding.”
KATE
VP, Correspondent Banking
Quad City Bank & Trust
QCR HOLDINGS, INC.
9
OUR PEOPLE
COMMUNITY BANK & TRUST
From the moment you meet Tina, you feel the positive energy and passion
she has for her work.
As a branch manager and real estate lender, she oversees all real estate
lending for the Cedar Valley. And she’s good at it. In 2018 she closed $1
million in home mortgage loans and in 2019 that number jumped to a
record $4.3 million.
“What I love most is helping customers get into a new home,” she said.
“It’s exciting when the realtor hands over the keys to homeowners at the
closing. I also feel honored that they’ve trusted me to help them with such
an important purchase in their lives.”
Tina said that helping people – of all income levels – get into a new home
never gets old, “It doesn’t feel like work because I love what I do.”
TINA
Branch Manager/Real Estate Lender, Officer
Community Bank & Trust
COMMUNITY STATE BANK
As an operations assistant, Steven supports everything from deposit
operations to procedure updates. “I enjoy the variety. I never get bored,”
said Steven.
Recently, Steven took a step outside of his regular job to help a customer
who didn’t speak much English. “He had just lost a family member and
needed to convert an account to the family estate to help pay for funeral
expenses, but the language barrier was causing frustration during what was
already a difficult time,” he said. Being fluent in Spanish, Steven was able
to explain the process and information required. “At his request, I also con-
tacted his attorney who was handling the estate and we were able to get it
worked out for the family,” he said.
Steven said helping others is one of the most rewarding parts of his job, but
it’s also a part of the culture. “Working at CSB is such an easy and friendly
environment and everyone knows your name. I really like that.”
STEVEN
Operations Assistant
Community State Bank
10
QCR HOLDINGS, INC. 24,000 VOLUNTEER HOURS IN 2019
OUR EMPLOYEES GIVE BACK TO THE
COMMUNITIES WE SERVE.
Employees in Cedar Rapids, Iowa keep
the community clean by picking up litter
in the city’s “One bag challenge.”
Our second favorite type of “bank,” QCBT
employees donate to the Mississippi Valley
Regional Blood Center Bus.
SFC Bank employees collected donations
for The Victim Center, an organization
providing services to victims of violent
and/or sexual crimes.
CRBT sponsors Movies on the Riverbank,
a free family event series open to the
public in downtown Cedar Rapids, Iowa.
In Waterloo,Iowa CBT employees roll up their sleeves for Habitat for Humanity.
m2 employee Tracy Lemieux and her
husband organized a bags tournament
to raise scholarship money in honor of
a dear friend.
CBT employees label books received
through grants at Dr. Walter
Cunningham Elementary.
QCBT hosted a “Dress for Success” community clothing drive after the organization lost
their building and much of their inventory to flooding.
CSB employees run a“No Shave
November” campaign to raise donations
for Hope Ministries.
CSB employees serve food at Bethel
Mission Homeless Shelter in Des Moines,
Iowa.
QCR HOLDINGS, INC.
11
OUR FUTURE
A SIMPLE AND FOCUSED STRATEGY
9 - Grow loans by 9% per year, funded with core deposits
We intend to continue to gain market share across our char-
ters by capitalizing on the value that our clients place on rela-
tionship-based community banking. Our goal is to organically
grow loans and leases by 9% per year and to fund this growth
with a corresponding increase in our core deposits.
6 - Grow fee income no less than 6% per year
We will continue our efforts to diversify our revenue mix and
develop more opportunities to increase profitability with con-
tinued gains in noninterest income. Our goal is to grow our
fee-based income by at least 6% per year.
5 - Improve efficiencies and hold expense growth to 5%
We will increase focus on improving operational efficiencies
and managing our noninterest expenses. Our goal is to limit our
annual operating expense growth to no more than 5% per year.
Our performance in
2019 gave us incredible
momentum entering into
the new year.
In 2020, we’ve set a
simple and focused
strategy for our
future. 9-6-5 is our
plan to continue to
grow earnings and
drive attractive long-
term returns for our
shareholders.
12
QCR HOLDINGS, INC. OUR LEADERSHIP
QCR HOLDINGS, INC. BOARD OF DIRECTORS
Larry J. Helling
Patrick S. Baird
Marie Zelnio Ziegler
Mary Kay Bates
John-Paul E. Besong
James M. Field
Todd A. Gipple
Mark C. Kilmer
Michael L. Peterson
George T. Ralph III
Timothy B. O’Reilly
Donna J. Sorenson, J.D.
A SPECIAL THANKS
TO OUR RETIRING BOARD MEMBERS
Our sincerest gratitude to Board members Michael L. Peterson and
George T. Ralph III who will retire in May.
Michael L. Peterson was Chairman of Community National Bancorporation
and Community National Bank and was appointed to the QCR Holdings, Inc.
Board following the merger in 2013. George T. Ralph III joined the Rockford
Bank & Trust Board in 2009 and the QCR Holdings, Inc. Board in 2015.
Thank you for your valuable insights and counsel.
MICHAEL L. PETERSON,
BOARD MEMBER
QCRH Board May 2013-May 2020
GEORGE T. RALPH III,
BOARD MEMBER
RB&T Board Feb 2009-Nov 2019
QCRH Board Feb 2015-May 2020
QCR HOLDINGS, INC.
13
QCR HOLDINGS, INC.
MANAGEMENT CABINET
(Shown left to right)
ANNE E. HOWARD
Senior Vice President, Director of Human Resources, QCR Holdings, Inc.
TODD A. GIPPLE
President, Chief Operating Officer and Chief Financial Officer, QCR Holdings, Inc.
LARRY J. HELLING
Chief Executive Officer, QCR Holdings, Inc. and Cedar Rapids Bank & Trust
JOHN H. ANDERSON
President and Chief Executive Officer, Quad City Bank & Trust/Chief Deposit Officer, QCR Holdings, Inc.
DANA L. NICHOLS
Executive Vice President, Chief Lending Officer, QCR Holdings, Inc.
14
QCR HOLDINGS, INC.
QCR HOLDINGS, INC.
LEADERSHIP TEAM
Leadership Team includes all members of the Management Cabinet and the following:
Stacey J. Bentley
Robert M. Eby
Robert C. Fulp
Kim K. Garrett
President and Chief Executive
Officer, Community Bank & Trust
Executive Vice President,
Chief Credit Officer,
QCR Holdings, Inc.
Chief Executive Officer,
SFC Bank
Vice President,
Corporate Communications and
Investor Relations Manager
Kurt A. Gibson
James D. Klein
John A. Rodriguez
Reba K. Winter
President and Chief Executive
Officer, Community State Bank
President,
Cedar Rapids Bank & Trust
Executive Vice President,
Operations and
Cedar Rapids Bank & Trust Cashier
Executive Vice President,
Chief Information Officer,
QCR Holdings, Inc.
* As of February 1, 2020
QCR HOLDINGS, INC.
15
CONDENSED BALANCE SHEET
Cash and due from banks
Federal funds sold and interest-bearing deposits
Securities
Net loans/leases
Intangibles
Goodwill
Assets held for sale
Other assets
Total assets
Total deposits
Total borrowings
Liabilities held for sale
Other liabilities
Total stockholders' equity
Total liabilities and stockholders' equity
ANALYSIS OF LOAN DATA
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
Municipal securities
Residential mortgage-backed and related securities
Other securities
Total securities
ANALYSIS OF DEPOSIT DATA
Deposit mix:
Noninterest-bearing demand deposits
Interest-bearing demand deposits
Time deposits
Brokered deposits
Total deposits
ANALYSIS OF BORROWINGS DATA
Borrowings mix:
Term FHLB advances
Overnight FHLB advances
Wholesale structured repurchase agreements
Customer repurchase agreements
Federal funds purchased
Subordinated notes
Junior subordinated debentures
Other
Total borrowings
16
QCR HOLDINGS, INC.
As of
December 31,
2019
December 31,
2018
(dollars in thousands)
Amount
Amount
$
76,254
$
85,523
157,691
611,341
3,654,204
14,970
74,748
11,966
159,596
662,969
3,692,907
17,450
77,832
-
307,876
4,909,050
$
253,433
4,949,710
$
$
3,911,051
$
3,977,031
278,955
5,003
178,690
404,948
-
94,573
535,351
4,909,050
$
473,138
4,949,690
$
$
1,507,825
$
1,429,410
1,736,396
87,869
239,904
109,352
1,766,111
117,968
290,759
119,382
8,859
3,690,205
$
9,124
3,732,754
$
36,001
3,654,204
$
39,847
3,692,907
$
$
20,078
$
36,411
447,853
120,587
459,409
159,249
$
22,823
611,341
$
7,900
662,969
$
777,224
$
791,101
2,407,502
571,343
2,204,206
704,903
154,982
3,911,051
$
276,821
3,977,031
$
$
50,000
$
76,327
109,300
-
2,193
11,230
68,394
37,838
-
$
278,955
190,165
35,000
2,084
26,690
4,782
37,670
$
32,250
404,968
INCOME STATEMENT
Interest income
Interest expense
Net interest income
Provision for loan/lease losses
For the Year Ended
December 31,
December 31,
2019
2018
(dollars in thousands, except per share data)
$
216,076
$
182,879
60,517
155,559
7,066
40,484
142,395
12,658
Net interest income after provision for loan/lease losses
$
148,493
$
129,737
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
Swap fee income
Securities losses, net
Earnings on bank-owned life insurance
Debit card fees
Correspondent banking fees
Gain on sale of assets and liabilities of subsidiary
Other
Total noninterest income
Salaries and employee benefits
Occupancy and equipment expense
Professional and data processing fees
Acquisition costs
Post-acquisition compensation, transition and integration costs
Disposition costs
FDIC insurance, other insurance and regulatory fees
Loan/lease expense
Net cost of operation of other real estate
Advertising and marketing
Bank service charges
Losses on debt extinguishment
Correspondent banking expense
CDI amortization
Goodwill impairment
Other
Total noninterest expense
Net income before taxes
Income tax expense
Net income
Basic EPS
Diluted EPS
Weighted average common shares outstanding
Weighted average common and common equivalent shares outstanding
$
9,559
$
8,707
6,995
6,812
2,571
748
28,295
(30)
1,973
3,357
773
12,286
5,429
4,726
6,420
901
405
10,787
-
1,632
3,263
852
-
3,848
$
78,768
$
41,541
$
92,063
$
68,994
15,106
13,381
-
3,582
3,325
2,955
1,097
3,789
4,548
2,009
436
836
2,266
3,000
6,841
12,884
11,452
1,795
2,086
-
3,594
1,544
2,489
3,552
1,838
-
821
1,692
-
6,402
$
155,234
$
119,143
$
72,027
$
52,135
14,619
57,408
$
9,015
43,120
$
$
$
3.65
3.60
$
$
2.92
2.86
15,730,016
15,967,775
14,768,687
15,064,730
QCR HOLDINGS, INC.
17
COMMON SHARE DATA
Common shares outstanding
Book value per common share (1)
Tangible book value per common share (2)
Closing stock price
Market capitalization
Market price / book value
Market price / tangible book value
Earnings per common share (basic) LTM (3)
Price earnings ratio LTM (3)
TCE / TA (4)
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Beginning balance
Net income
Other comprehensive income (loss), net of tax
Common stock cash dividends declared
Proceeds from issuance of 9,400 shares of common stock
as a result of the acquisition of Bates Companies
Proceeds from issuance of 1,689,414 shares of common stock as a result of the
merger with Springfield Bancshares, net of issuance costs of $106,237
Proceeds from issuance of 23,501 shares of common stock
as a result of the acquisition of Bates Companies
Other (5)
Ending balance
REGULATORY CAPITAL RATIOS:
Total risk-based capital ratio
Tier 1 risk-based capital ratio
Tier 1 leverage capital ratio
Common equity tier 1 ratio
KEY PERFORMANCE RATIOS AND
OTHER METRICS
Return on average assets (annualized)
Return on average total equity (annualized)
Net interest margin
Net interest margin (TEY) (Non-GAAP)(6) (8)
Efficiency ratio (Non-GAAP) (8)
Gross loans and leases / total assets (9)
Full-time equivalent employees (7)
AVERAGE BALANCES
Assets
Loans/leases
Deposits
Total stockholders' equity
For the Year Ended
December 31,
2019
December 31,
2018
(dollars in thousands, except per share data)
15,828,098
15,718,208
$33.82
$28.15
$43.86
$694,220
129.69%
155.76%
$3.65
12.02 x
9.25%
$30.10
$24.04
$32.09
$504,397
106.61%
133.49%
$2.92
10.98 x
7.78%
$
473,138
$
353,287
57,408
4,445
(3,775)
400
-
-
43,120
(3,206)
(3,546)
-
80,531
1,000
$
3,735
535,351
1,952
473,138
$
13.33%
11.04%
9.53%
10.18%
1.12%
11.31%
3.31%
3.45%
66.25%
75.36%
697
10.69%
9.77%
8.87%
8.89%
0.98%
10.62%
3.46%
3.62%
64.77%
75.41%
755
$
5,102,980
$
4,392,121
3,857,547
4,228,207
507,409
3,352,357
3,602,219
405,973
(1) Includes accumulated other comprehensive income (loss).
(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets.
(3) LTM : Last twelve months.
(4) TCE / TCA : tangible common equity / total tangible assets.
(5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.
(6) TEY : Tax equivalent yield.
(7) Full-time equivalent employees decreased in 2019 due to the sale of subsidiary Rockford Bank & Trust (RB&T).
(8) See GAAP to Non-GAAP reconciliations in the Company's 10-K.
(9) Excludes assets held for sale as of December 31, 2019.
18
QCR HOLDINGS, INC.
1
ANALYSIS OF NET INTEREST INCOME AND MARGIN
Fed funds sold
Interest-bearing deposits at financial institutions
Securities (1)
Restricted investment securities
Loans (1)
Total earning assets (1)
Interest-bearing deposits
Time deposits
Short-term borrowings
Federal Home Loan Bank advances
Other borrowings
Subordinated notes
Junior subordinated debentures
Total interest-bearing liabilities
Net interest income / spread (1)
Net interest margin
Net interest margin (TEY) (Non-GAAP) (1) (2)
Adjusted net interest margin (TEY) (Non-GAAP) (1)(2)
December 31, 2019
December 31, 2018
For the Year Ended
Average
Balance
Interest Earned
or Paid
Average Yield
or Cost
Average
Balance
Interest Earned
or Paid
Average Yield
or Cost
$
8,898
$
204
179,635
635,650
21,559
3,910
24,150
1,174
3,857,547
193,365
$
4,703,289
$
222,803
$
2,443,989
$
29,898
966,745
16,837
108,536
13,563
60,883
37,751
20,977
363
2,895
512
3,564
2,308
(dollars in thousands)
2.29%
2.18%
3.80%
5.45%
5.01%
4.74%
1.22%
2.17%
2.16%
2.67%
3.77%
5.85%
6.11%
$
20,472
$
338
66,275
659,017
22,023
3,352,357
1,267
23,621
1,093
163,197
$
4,120,144
$
189,516
$
2,043,314
$
18,651
766,020
19,458
202,715
69,623
-
37,578
12,024
293
4,768
2,749
-
1,999
$
3,648,304
$
60,517
1.66%
$
3,138,708
$
40,484
$
162,286
3.08%
3.31%
3.45%
3.36%
$
149,032
1.65%
1.91%
3.58%
4.96%
4.87%
4.60%
0.91%
1.57%
1.51%
2.35%
3.95%
0.00%
5.32%
1.29%
3.31%
3.46%
3.62%
3.48%
(1) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% tax rate.
(2) TEY: Tax equivalent yield.
December 31,
2019
December 31,
2018
(dollars in thousands)
ADJUSTED NIM (TEY)*
Net interest income (GAAP)
Plus: Tax-equivalent adjustment
Net interest income - tax equivalent (non-GAAP)
Less: Acquisition accounting net accretion
Adjusted net interest income
$
$
155,559
6,727
162,286
4,344
157,942
142,395
6,637
149,032
5,527
143,505
$
$
Average earning assets
$
4,703,289
$
4,120,144
NIM (GAAP)
NIM (TEY) (non-GAAP)
Adjusted NIM (TEY) (non-GAAP)
ADJUSTED NET INCOME
Net income (GAAP)
Less nonrecurring items (post-tax)(*):
Income:
Securities losses, net
Gain on sale of assets and liabilities of subsidiary
Total nonrecurring income (non-GAAP)
Expense:
Losses on debt extinguishment
Goodwill impairment
Disposition costs
Acquisition costs
Tax expense on expected liquidation of RB&T BOLI
Post-acquisition compensation, transition and integration costs
Total nonrecurring exxpense (non-GAAP)
3.31%
3.45%
3.36%
3.46%
3.62%
3.48%
$
57,408
$
43,120
$
$
$
(22)
8,539
8,517
345
3,000
2,627
-
790
2,828
9,590
$
$
-
-
$
-
-
$
-
-
1,645
-
1,647
3,292
$
Adjusted net interest income (non-GAAP)
$
58,481
$
46,412
EFFICIENCY RATIO
Noninterest expense (GAAP)
Net interest income (GAAP)
Noninterest income (GAAP)
Total income
$
155,234
$
119,143
$
$
155,559
78,768
234,327
$
$
142,395
41,541
183,936
Efficiency ratio (noninterest expense/total income) (non-GAAP)
66.25%
64.77%
* Nonrecurring items (after-tax) are calculated using an estimated effective tax rate of 21% with the exception of goodwill impairment
which is not deductible for tax and gain on sale of subsidiary which has an estimated effective tax rate of 30.5%.
1
QCR HOLDINGS, INC.
19
STOCK LISTING INFORMATION
The common stock of QCR Holdings, Inc. is
traded on the Nasdaq Global Market under
the symbol “QCRH”.
DIVIDEND INFORMATION
Record
Date
Payment
Date
Amount
Per Share
03/15/19
04/03/19
06/21/19
07/03/19
09/20/19
10/02/19
12/20/19
01/02/20
$ .06
$ .06
$ .06
$ .06
2019 Stock Price Performance
QCR Holdings - +37.4%
KBW Nasdaq Bank Index - +31.8%
S&P 500 - +28.5%
Annual %
Increase
40
35
30
25
20
15
10
5
0
-5
1/1/19 1/15/19 1/29/19 2/12/19 2/26/19 3/12/19 3/26/19 4/9/19 4/23/19 5/7/19 5/21/19 6/4/19 6/18/19 7/2/19 7/16/19 7/30/19 8/13/19 8/27/19 9/10/19 9/24/19 10/8/19 10/22/19 11/5/19 11/19/19 12/3/19 12/17/19
QCRH
KBW Nasdaq Bank Index
S&P 500
The Annual Meeting of the Stockholders of QCR Holdings, Inc. will be held:
Investor Information
Wednesday, May 20, 2020 at 8:00 am CDT
Quad City Bank & Trust Lobby
3551 Seventh Street, Moline, IL 61265
Stockholders interested in information may contact:
Shellee R. Showalter
Senior Vice President, Director of Investor Services & Compensation
QCR Holdings, Inc. 3551 Seventh Street, Moline, IL 61265
309.743.7760
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 are available to stockholders without charge by accessing our internet
site at www.qcrh.com or by writing or calling:
Nick W. Anderson
Senior Vice President, Chief Accounting Officer
QCR Holdings, Inc. 3551 Seventh Street, Moline, IL 61265
309.743.7707
Stock Transfer Agent
Inquiries regarding stock transfer, registration, lost certificates, or changes in name and address
should be directed to the stock transfer agent by phone at 866.741.7520 and registrar by writing:
American Stock Transfer & Trust Company, LLC
Operations Center
6201 15th Avenue, Brooklyn, NY 11219
20
QCR HOLDINGS, INC.
Stockholders, investors, and analysts interested in additional information may contact:
Todd A. Gipple
President, Chief Operating Officer and Chief Financial Officer
QCR Holdings, Inc. 3551 Seventh Street, Moline, IL 61265
309.743.7745
Kim K. Garrett
Vice President, Corporate Communications and Investor Relations Manager
QCR Holdings, Inc. 500 First Avenue NE, Cedar Rapids, IA 52401
319.743.7006
Independent Registered Public Accounting Firm
RSM US LLP, Davenport, IA
Corporate Counsel
Lane & Waterman LLP, Davenport, IA
Barack Ferrazzano Kirschbaum & Nagelberg LLP, Chicago, IL
Internet Information
Information on our subsidiaries’ history, locations, products and services can be accessed
on the internet at: www.qcbt.com, www.crbt.com, www.communitybt.com,
www.bankcsb.com, www.sfcbank.com and www.m2lease.com
OUR LOCATIONS
Quad City Bank & Trust
Moline, Illinois
Cedar Rapids Bank & Trust
Cedar Rapids, Iowa
Community Bank & Trust
Waterloo, Iowa
Community State Bank
Ankeny, Iowa
SFC Bank
Springfield, Missouri
m2 Lease Funds
Brookfield, Wisconsin
4 STATES 4 CHARTERS 25 FACILITIES 700+ EMPLOYEES
3551 Seventh Street
Moline, IL 61265
www.qcrh.com
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