Moline-based QCR Holdings on Thursday reported record net income for the fourth quarter and full year.
QCR posted net income of $13.3 million for the fourth quarter of 2018, or 84 cents per share. That's compared to net income of $8.8 million, or 55 cents per share, for the third quarter of 2018.
For the year, the company reported net income of $43.1 million, or $2.86 per share. That's compared to net income of $35.7 million, or $2.61 per share, for the year that ended Dec. 31, 2017.
"We are pleased with our financial performance in 2018, delivering record net income, which translated into a 16 percent increase in adjusted earnings per share," said Doug Hultquist, QCR pesident and CEO, in the report. "Our strong financial results were driven by increases in both loans and deposits and significantly higher non-interest income. And while our net interest margin was adversely impacted by the flattening of the yield curve over the course of 2018, we were able to grow adjusted net interest income by 19 percent from 2017."
The fourth quarter results include $1.2 million of compensation from acquisitions, compared to $1.6 million of similar costs in the third quarter, according to the report.
In October, the company completed its acquisition of Bates Financial Advisors, Inc. and the other Bates companies, headquartered in Rockford. The deal added around $700 million in assets, according to the report.
"We finished the year with strong momentum in the fourth quarter, delivering solid loan and lease production, successfully attracting new deposits and generating record fee income," Hultquist said. "We were also successful in reducing our nonperforming assets by 33 percent, as we monetized a number of positions during the quarter. Looking to 2019, we remain optimistic, as we continue to make the investments that we believe will lead to improved profitability and enhanced shareholder value in the years to come.”
In addition to the Quad-Cities, QCR's banks serve the Cedar Rapids, Cedar Valley, Des Moines/Ankeny markets in Iowa and the Rockford, Illinois, market.