QCR Holdings in Moline, Ill., will stop offering new loans and leases through its equipment finance business.
The $8.9 billion-asset company said in a press release that m2 Equipment Finance will continue to service its existing $360 million portfolio with a reduced staff. The majority of the portfolio should amortize over the next three years.
QCR bought the Waukesha, Wis., company in 2005.
“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,” Larry Helling, QCR’s CEO, said in the release. “We will focus our efforts on business units with more opportunity to build client relationships with greater deposit gathering potential.”
QCR said it will incur about $2.1 million of restructuring expenses and record a $400,000 goodwill writedown in the third quarter. It should take two quarters to earn back the one-time charge.