Business
QCR Holdings, Inc. to Discontinue Offering New Loans and Leases Through m2 Equipment Finance Subsidiary
MOLINE, ill., Sept. 05, 2024 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) announced the decision to discontinue offering new loans
About this update from Qcr Holdings, Inc.
[{"type":"text","content":"MOLINE, ill., Sept. 05, 2024 (GLOBE NEWSWIRE) -- 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 manag...