Moline-based QCR Holdings announced on Thursday it earned a record $35.7 million in net income for the 2017 fiscal year, along with $9.9 million in net income for the fourth quarter that ended Dec. 31.
The $9.9 million in net profit for the fourth quarter included $2.1 million in acquisition costs and post-acquisition compensation, transition and integration costs related to the purchase of Guaranty Bank and Trust Co. in Cedar Rapids.
It also included $753,000 in costs related to the core processor conversion at Community State Bank in Ankeny, Iowa, that is planned for late 2018.
Also, due to the impact of the Tax Cuts and Jobs Act, QCR Holdings recorded a $2.9 million increase in the value of its net deferred tax asset, which was recorded as a reduction in income tax expense in the fourth quarter of 2017.
By comparison, the company reported a net income of $27.7 million for fiscal year 2016, as well as fourth quarter net income of $8.5 million for the quarter ending Dec. 31 of that year.
“We are pleased with our operating performance this year, and we continue to strategize and pursue ways to improve our profitability through our ongoing key initiatives,” said QCR Holdings President and CEO Douglas Hultquist in a news release.
“We finished the year on a strong note, with solid organic loan and deposit growth, and significant fee income,” he added. “The acquisition of Guaranty Bank in the fourth quarter of 2017 and CSB in the third quarter of 2016 also contributed to our profitability.”
During the fourth quarter the company’s total assets increased $432.2 million, or 12 percent, to a total of $4 billion. Of that amount, $274.8 million is attributable to the acquisition of Guaranty Bank. Total loans and leases grew $287.7 million, of which $192.5 million is attributable to the purchase of Guaranty Bank.
Loan and lease growth was primarily funded by deposit growth. Deposits grew organically by $159.9 million, or 6 percent in the fourth quarter.
“Organic loan and lease growth totaled $366.5 million for the full year, or an annual growth rate of 15.2 percent,” Hultquist said. We will continue to grow loans organically through market share increases, as customers continue to appreciate the way we do business and are attracted to our relationship-based community banking model.”
QCR Holdings, Inc. is a multi-bank holding company that serves the Quad-City, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Rockford, Illinois, communities through its wholly owned subsidiary banks.