QCR Holdings, Inc. to Discontinue Offering New Loans and Leases Through m2 Equipment Finance Subsidiary
05 Septiembre 2024 - 3:05PM
QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) announced the
decision to discontinue offering new loans and leases through its
equipment finance business, m2 Equipment Finance, LLC (“m2”),
located in Waukesha, WI. m2 was acquired by the Company in 2005 and
has provided equipment financing solutions to commercial borrowers
since its founding in 1998.
“We expect that this change will improve our profitability,
increase liquidity, reduce our credit losses and allow the Company
to allocate capital to assets with higher risk-adjusted returns. We
will focus our efforts on business units with more opportunity to
build client relationships with greater deposit gathering
potential,” said Larry J. Helling, the Company’s Chief Executive
Officer.
m2 will continue to service its existing $360 million equipment
finance portfolio with a reduced staff. The Company expects the
majority of the portfolio to amortize over the next 3 years.
One-time restructuring expenses of approximately $2.1 million and a
goodwill write-down of approximately $0.4 million will be
recognized in the third quarter of 2024. The Company expects to
earn back the one-time charge in two quarters.
“While m2 has been an important contributor to our company over
the past 19 years, market dynamics have continued to evolve, and it
became clear that m2 would not achieve our expected returns over
the long term. We are extremely grateful to our m2 colleagues for
their dedication to serving clients and their contribution to the
overall success of QCRH,” added Mr. Helling.
About UsQCR Holdings, Inc., headquartered in
Moline, Illinois, is a relationship-driven, multi-bank holding
company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des
Moines/Ankeny and Springfield communities through its wholly owned
subsidiary banks, Quad City Bank & Trust Company, Cedar Rapids
Bank & Trust Company, Community State Bank and Guaranty Bank.
The Company has 36 locations in Iowa, Missouri, Wisconsin and
Illinois. As of June 30, 2024, the Company had $8.9 billion in
assets, $6.9 billion in loans and $6.8 billion in deposits. For
additional information, please visit the Company’s website at
www.qcrh.com.
Special Note Concerning Forward-Looking
Statements. This document contains, and future oral and
written statements of the Company and its management may contain,
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 with respect to the
financial condition, results of operations, plans, objectives,
future performance and business of the Company. Forward-looking
statements, which may be based upon beliefs, expectations and
assumptions of the Company’s management and on information
currently available to management, are generally identifiable by
the use of words such as “believe,” “expect,” “anticipate,” “bode”,
“predict,” “suggest,” “project”, “appear,” “plan,” “intend,”
“estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,”
“likely,” “might,” “potential,” “continue,” “annualized,” “target,”
“outlook,” as well as the negative forms of those words, or other
similar expressions. Additionally, all statements in this document,
including forward-looking statements, speak only as of the date
they are made, and the Company undertakes no obligation to update
any statement in light of new information or future
events. A number of
factors, many of which are beyond the ability of the Company to
control or predict, could cause actual results to differ materially
from those in its forward-looking statements. These factors
include, among others, the following: (i) the strength of the
local, state, national and international economies (including
effects of inflationary pressures and supply chain constraints);
(ii) the economic impact of any future terrorist threats and
attacks, widespread disease or pandemics, acts of war or other
threats thereof (including the ongoing Israeli-Palestinian conflict
and the Russian invasion of Ukraine), or other adverse external
events that could cause economic deterioration or instability in
credit markets, and the response of the local, state and national
governments to any such adverse external events; (iii) changes in
accounting policies and practices, as may be adopted by state and
federal regulatory agencies, the Financial Accounting Standards
Board or the Public Company Accounting Oversight Board; (iv)
changes in local, state and federal laws, regulations and
governmental policies concerning the Company’s general business as
a result of the upcoming 2024 presidential election or any changes
in response to failures of other banks; (vi) increased competition
in the financial services sector, including from non-bank
competitors such as credit unions and “fintech” companies, and the
inability to attract new customers; (vii) changes in technology and
the ability to develop and maintain secure and reliable electronic
systems; (viii) unexpected results of acquisitions, which may
include failure to realize the anticipated benefits of acquisitions
and the possibility that transaction costs may be greater than
anticipated; (ix) the loss of key executives or employees; (x)
changes in consumer spending; (xi) unexpected outcomes of existing
or new litigation involving the Company; (xii) the economic impact
of exceptional weather occurrences such as tornadoes, floods and
blizzards; (xiii) fluctuations in the value of securities held in
our securities portfolio; (xiv) concentrations within our loan
portfolio, large loans to certain borrowers, and large deposits
from certain clients; (xv) the concentration of large deposits from
certain clients who have balances above current Federal Deposit
Insurance Corporation insurance limits and may withdraw deposits to
diversity their exposure; (xvi) the level of non-performing assets
on our balance sheets; (xvii) interruptions involving our
information technology and communications systems or third-party
servicers; (xviii) breaches or failures of our information security
controls or cybersecurity-related incidents, and (xixi) the ability
of the Company to manage the risks associated with the foregoing as
well as anticipated. These risks and uncertainties should be
considered in evaluating forward-looking statements and undue
reliance should not be placed on such statements. Additional
information concerning the Company and its business, including
additional factors that could materially affect the Company’s
financial results, is included in the Company’s filings with the
Securities and Exchange Commission.
Contact:Todd A. GipplePresident and Chief Financial Officer(309)
743-7745tgipple@qcrh.com
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