Acquisition costs reduce QCR Holdings’ profit

Acquisitions costs trimmed third-quarter earnings for QCR Holdings, corporate parent of Cedar Rapids Bank and Trust.

The Moline, Ill.-based bank holding company posted net income of $6.1 million, or 46 cents per share, for the quarter that ended on Sept. 30, compared with $6.5 million, or 55 cents per share, for the same three months of 2015.

Net income for the third quarter of 2016 included $1.5 million of costs (after-tax) related to the purchase of Community State Bank of Ankeny. Excluding the acquisition costs and other non-core items, QCR Holdings reported core net income of $7.5 million, or 57 cents per share, for the quarter that ended Sept. 30, 2015.

For the nine months that ended on the same date on 2016, the company reported net income of $19.2 million, or $1.52 per share.

Excluding acquisition costs and other non-core items, QCR Holdings reported core net income of $20.6 million, or $1.64 per share. By comparison, for the nine months ended Sept. 30, 2015, the company reported net income of $10.1 million, or $1.01 per share.

'Our core operating performance for the first nine months of 2016 has been solid,” Douglas Hultquist, QCR Holdings president and CEO, said in a news release. 'Our core return on average assets has improved from 0.77 percent to 1.02 percent, when comparing the first nine months of 2015 to the same period of 2016.

'This is the result of solid loan growth, reductions in wholesale borrowings, continued margin improvements, and strong fee income.”

During the third quarter 2016, QCR Holdings's total assets increased $597.6 million, or 22 percent, to $3.28 billion, while total loans and leases grew $437.8 million. Of the $437.8 million of loan growth, $419.5 million was related to the acquisition of Community State Bank, while the remaining $18.3 million was organic growth.

Net interest income totaled $23.6 million for the quarter that ended on Sept. 30, 2016, up from $20.1 million in the same quarter of 2015.