• QCR Holdings, Inc. Announces Record Net Income of $32.9 Million for the Fourth Quarter and Record Net Income of $113.6 Million for the Full Year 2023

    المصدر: Nasdaq GlobeNewswire / 23 يناير 2024 16:05:51   America/New_York

    Fourth Quarter Highlights

    • Record fourth quarter net income of $32.9 million, or $1.95 per diluted share
    • Record Capital Markets Revenue of $37.0 million
    • Improved NIM, which increased by 1 basis point from the prior quarter
    • Significant increase in tangible book value (non-GAAP) per share of $3.48, or 35% annualized
    • TCE/TA ratio (non-GAAP) improved by 70 basis points to 8.75%
    • Completion of first two securitizations of $265 million of low-income housing tax credit loans

    Full Year Highlights

    • Record annual net income of $113.6 million, or $6.73 per diluted share
    • Record adjusted net income (non-GAAP) of $115.1 million, or $6.82 per diluted share
    • Record Capital Markets Revenue of $92.1 million, an increase of $50.8 million, or 123%
    • Loan and lease growth of 11% prior to loan securitizations
    • Deposit growth of 9%
    • Tangible book value (non-GAAP) per share increased $6.99, or 19%
    • Increased TCE/TA ratio (non-GAAP) by 82 basis points to 8.75%

    MOLINE, Ill., Jan. 23, 2024 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced record quarterly net income of $32.9 million and diluted earnings per share (“EPS”) of $1.95 for the fourth quarter of 2023, compared to net income of $25.1 million and diluted EPS of $1.49 for the third quarter of 2023. For the full year, the Company reported net income of $113.6 million, or $6.73 per diluted share.

    Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the fourth quarter of 2023 were $33.3 million and $1.97, respectively. For the third quarter of 2023, adjusted net income (non-GAAP) was $25.4 million and adjusted diluted EPS (non-GAAP) was $1.51. For the fourth quarter of 2022, net income and diluted EPS were $30.9 million and $1.81, respectively, and adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $31.1 million and $1.83, respectively.

     For the Quarter Ended
     December 31,September 30,December 31,
    $ in millions (except per share data)202320232022
    Net Income$32.9$25.1$30.9
    Diluted EPS$1.95$1.49$1.81
    Adjusted Net Income (non-GAAP)*$33.3$25.4$31.1
    Adjusted Diluted EPS (non-GAAP)*$1.97$1.51$1.83

    *Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.


    “We are pleased to deliver record fourth quarter and full year results highlighted by significant fee income and robust loan growth,” said Larry J. Helling, Chief Executive Officer. “In addition, we completed our first two securitizations of low-income housing tax credit loans, grew core deposits by 6%, and maintained our strong asset quality.”

    “We enter 2024 with a solid deposit and loan pipeline, a strong balance sheet, excellent credit quality and well-managed expenses. We remain focused on building our franchise through relationship banking and executing on our differentiated business model, all with the view of delivering attractive returns to our shareholders,” said Mr. Helling.

    Net Interest Income Grew to $55.7 Million and NIM Expanded

    Net interest income for the fourth quarter of 2023 totaled $55.7 million, an increase of $0.5 million from the third quarter. Acquisition-related net accretion totaled $673 thousand for the fourth quarter of 2023, compared to $539 thousand in the third quarter. Net interest income was $65.2 million for the fourth quarter of 2022.

    In the fourth quarter of 2023, net interest margin (“NIM”) was 2.90% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP) was 3.32%, up from 2.89% and 3.31% in the prior quarter, respectively. Adjusted NIM TEY (non-GAAP) of 3.29%, was also up from 3.28% in the third quarter.

    “Our adjusted NIM on a tax equivalent yield basis improved by one basis point on a linked-quarter basis to 3.29% and was above the midpoint of our guidance range,” said Todd A. Gipple, President and Chief Financial Officer. “During the quarter, our loan and investment yields continued to expand and we experienced a more modest increase in our cost of funds with a slowing in the shift of the composition of our deposits from noninterest and lower beta deposits to higher beta deposits. We are pleased to see continued stabilization in our deposit mix and the expansion of our NIM.”

    Noninterest Income of $47.7 Million, Including a Record $37.0 Million of Capital Markets Revenue

    Noninterest income for the fourth quarter of 2023 totaled $47.7 million, up significantly from $26.6 million for the third quarter of 2023. The Company generated a record $37.0 million of capital markets revenue in the quarter, up from $15.6 million in the prior quarter. Wealth management revenue was $4.1 million for the quarter, up from $3.8 million in the prior quarter.

    “Capital markets revenue surged late in the fourth quarter and was $37 million for the quarter, achieving a total of $92 million to close out the year,” added Mr. Gipple. “Our clients took advantage of the significant decrease in long-term interest rates late in the quarter to lock-in attractive long-term financing terms. Capital markets revenue from swap fees continues to benefit from the strong demand for affordable housing. Even with the strong results in the fourth quarter, our LIHTC lending and capital markets revenue pipelines remain healthy. As a result, we are increasing our capital markets revenue guidance for the next twelve months to be in a range of $50 to $60 million.”

    Noninterest Expenses of $60.9 Million Impacted by Strong Capital Markets Outperformance

    Noninterest expense for the fourth quarter of 2023 totaled $60.9 million, compared to $51.1 million for the third quarter of 2023 and $49.7 million for the fourth quarter of 2022. The linked-quarter increase was primarily due to higher incentive-based compensation related to our record fourth quarter and full year performance.

    Continued Strong Loan Growth

    During the fourth quarter of 2023, the Company’s loans and leases held for investment grew $213.4 million to a total of $6.5 billion, or 13% on an annualized basis. For the full year, total loans and leases grew $669.5 million, or 11%, when excluding the $265 million in loan securitizations that we completed in the fourth quarter.

    “Our strong performance is a testament to our differentiated relationship-based community banking model as well as the underlying economic resiliency across our markets,” added Mr. Helling. “Given our current pipeline and the ongoing strength of our markets, we are targeting loan growth for the full year 2024 between 8% and 10%, prior to the loan securitizations that we have planned for 2024.”

    Asset Quality Remains Excellent

    Nonperforming assets (“NPAs”) totaled $34.2 million at the end of the fourth quarter, a slight improvement from $34.7 million at the end of the third quarter. The ratio of NPAs to total assets improved to 0.40% on December 31, 2023, compared to 0.41% on September 30, 2023. In addition, the Company’s criticized loans and classified loans to total loans and leases on December 31, 2023 also improved to 2.93% and 1.03%, respectively, as compared to 2.98% and 1.05% as of September 30, 2023.

    The Company recorded a total provision for credit losses of $5.2 million during the quarter which included $2.5 million of provision for loans and leases and $2.7 million of provision for unfunded commitments. The provision for credit losses on unfunded commitments was driven by the surge in commitments in our LIHTC lending business. As of December 31, 2023, the allowance for credit losses to total loans/leases held for investment was 1.33%.

    Stable Core Deposits and Increased Liquidity

    During the fourth quarter of 2023, the Company’s core deposits, which exclude brokered deposits, decreased slightly by $4.2 million in the fourth quarter, but grew by $346.0 million, or 6%, for the full year. Our Correspondent Bank deposit portfolio typically falls temporarily in the fourth quarter as our clients position their balance sheets at year-end. Total Correspondent Bank deposits declined 9% at quarter-end and have since rebounded, increasing $188 million, or 35%, by mid-January.

    Total uninsured and uncollateralized deposits remain very low at 18% of total deposits as of the end of the fourth quarter, as compared to 20% as of the end of the third quarter. The Company maintained approximately $3.1 billion of available liquidity sources at year-end, which includes $1.2 billion of immediately available liquidity.

    Continued Strong Capital Levels

    As of December 31, 2023, the Company’s total risk-based capital ratio was 14.15%, the common equity tier 1 ratio was 9.57% and the tangible common equity to tangible assets ratio (non-GAAP) was 8.75%. By comparison, these respective ratios were 14.48%, 9.68% and 8.05% as of September 30, 2023. The Company remains focused on growing capital and targeting capital levels in the top quartile of the Company’s peer group.

    The Company’s tangible book value per share (non-GAAP) increased by $3.48, or 35% annualized during the fourth quarter. Accumulated other comprehensive income (“AOCI”) increased $25.4 million during the quarter due to an increase in the value of the Company’s available for sale securities portfolio and certain derivatives resulting from the change in long-term interest rates during the quarter. In addition, the combination of strong earnings and a modest dividend contributed to the improvement in tangible book value per share (non-GAAP).

    Conference Call Details

    The Company will host an earnings call/webcast tomorrow, January 24, 2024, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through January 31, 2024. The replay access information is 877-344-7529 (international 412-317-0088); access code 1087284. A webcast of the teleconference can be accessed on the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

    About Us
    QCR 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. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018, and Guaranty Bank, also based in Springfield, Missouri, was acquired by the Company and merged with Springfield First Community Bank on April 1, 2022, with the combined entity operating under the Guaranty Bank name. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. Quad City Bank & Trust Company offers equipment loans and leases to businesses through its wholly owned subsidiary, m2 Equipment Finance, LLC, based in Brookfield, Wisconsin, and also provides correspondent banking services. The Company has 36 locations in Iowa, Missouri, Wisconsin and Illinois. As of December 31, 2023, the Company had $8.5 billion in assets, $6.5 billion in loans and $6.5 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 (including the COVID-19 pandemic in the United States), acts of war or other threats thereof (including the 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 FASB or the PCAOB; (iv) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the recent failures of other banks; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of LIBOR phase-out and the recent potential additional rate increases by the Federal Reserve); (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 FDIC 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 (xix) 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. Gipple
    President
    Chief Financial Officer
    (309) 743-7745
    tgipple@qcrh.com


    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
          
     As of
     December 31,September 30,June 30,March 31,December 31,
      2023  2023  2023  2023  2022 
          
     (dollars in thousands)
          
    CONDENSED BALANCE SHEET     
          
    Cash and due from banks$97,123 $104,265 $84,084 $64,295 $59,723 
    Federal funds sold and interest-bearing deposits 140,369  80,650  175,012  253,997  124,270 
    Securities, net of allowance for credit losses 1,005,528  896,394  882,888  877,446  928,102 
    Loans receivable held for sale (1) 2,594  278,893  295,057  140,633  1,480 
    Loans/leases receivable held for investment 6,540,822  6,327,414  6,084,263  6,049,389  6,137,391 
    Allowance for credit losses (87,200) (87,669) (85,797) (86,573) (87,706)
    Intangibles 13,821  14,537  15,228  15,993  16,759 
    Goodwill 139,027  139,027  139,027  138,474  137,607 
    Derivatives 188,978  291,295  170,294  130,350  177,631 
    Other assets 497,832  495,251  466,617  452,900  453,580 
    Total assets$ 8,538,894 $ 8,540,057 $ 8,226,673 $ 8,036,904 $ 7,948,837 
          
    Total deposits$6,514,005 $6,494,852 $6,606,720 $6,501,663 $5,984,217 
    Total borrowings 718,295  712,126  418,368  417,480  825,894 
    Derivatives 214,098  320,220  195,841  150,401  200,701 
    Other liabilities 205,900  184,476  183,055  165,866  165,301 
    Total stockholders' equity 886,596  828,383  822,689  801,494  772,724 
    Total liabilities and stockholders' equity$ 8,538,894 $ 8,540,057 $ 8,226,673 $ 8,036,904 $ 7,948,837 
          
    ANALYSIS OF LOAN PORTFOLIO     
    Loan/lease mix: (2)     
    Commercial and industrial - revolving$325,243 $299,588 $304,617 $307,612 $296,869 
    Commercial and industrial - other 1,390,068  1,381,967  1,308,853  1,322,384  1,371,590 
    Commercial and industrial - other - LIHTC 91,710  105,601  93,700  97,947  80,103 
    Total commercial and industrial 1,807,021  1,787,156  1,707,170  1,727,943  1,748,562 
    Commercial real estate, owner occupied 607,365  610,618  609,717  616,922  629,367 
    Commercial real estate, non-owner occupied 1,008,892  955,552  963,814  982,716  963,239 
    Construction and land development 477,424  472,695  437,682  448,261  448,986 
    Construction and land development - LIHTC 943,101  921,359  870,084  759,924  743,075 
    Multi-family 284,721  282,541  280,418  229,370  236,043 
    Multi-family - LIHTC 711,422  874,439  820,376  740,500  727,760 
    Direct financing leases 31,164  34,401  32,937  35,373  31,889 
    1-4 family real estate 544,971  539,931  535,405  532,491  499,529 
    Consumer 127,335  127,615  121,717  116,522  110,421 
    Total loans/leases$6,543,416 $6,606,307 $6,379,320 $6,190,022 $6,138,871 
    Less allowance for credit losses 87,200  87,669  85,797  86,573  87,706 
    Net loans/leases$ 6,456,216 $ 6,518,638 $ 6,293,523 $ 6,103,449 $ 6,051,165 
          
    ANALYSIS OF SECURITIES PORTFOLIO     
    Securities mix:     
    U.S. government sponsored agency securities$14,973 $16,002 $18,942 $19,320 $16,981 
    Municipal securities 853,645  764,017  743,608  731,689  779,450 
    Residential mortgage-backed and related securities 59,196  57,946  60,958  63,104  66,215 
    Asset backed securities 15,423  16,326  17,393  17,967  18,728 
    Other securities 41,115  43,272  43,156  46,535  46,908 
    Trading securities 22,368  -  -  -  - 
    Total securities (3)$1,006,720 $897,563 $884,057 $878,615 $928,282 
    Less allowance for credit losses 1,192  1,169  1,169  1,169  180 
    Net securities$ 1,005,528 $ 896,394 $ 882,888 $ 877,446 $ 928,102 
          
    ANALYSIS OF DEPOSITS     
    Deposit mix:     
    Noninterest-bearing demand deposits$1,038,689 $1,027,791 $1,101,605 $1,189,858 $1,262,981 
    Interest-bearing demand deposits 4,338,390  4,416,725  4,374,847  4,033,193  3,875,497 
    Time deposits 851,950  788,692  765,801  679,946  744,593 
    Brokered deposits 284,976  261,644  364,467  598,666  101,146 
    Total deposits$ 6,514,005 $ 6,494,852 $ 6,606,720 $ 6,501,663 $ 5,984,217 
          
    ANALYSIS OF BORROWINGS     
    Borrowings mix:     
    Term FHLB advances$135,000 $135,000 $135,000 $135,000 $- 
    Overnight FHLB advances 300,000  295,000  -  -  415,000 
    Other short-term borrowings 1,500  470  1,850  1,100  129,630 
    Subordinated notes 233,064  232,958  232,852  232,746  232,662 
    Junior subordinated debentures 48,731  48,698  48,666  48,634  48,602 
    Total borrowings$ 718,295 $ 712,126 $ 418,368 $ 417,480 $ 825,894 
          
    (1) Loans with a fair value of $0 million, $278.0 million, $291.0 million and $139.2 million have been identified for securitization and are included in LHFS at December 31, 2023, September 30, 2023, June 30, 2023 and March 31, 2023 respectively.
    (2) Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio are $1.8 billion as of December 31, 2023.
    (3) As of December 31, 2023, trading securities included two securities purchased from Freddie Mac following the loan sale and securitization of $130 million of tax exempt LIHTC loans and $135 million of taxable LIHTC loans sponsored by Freddie Mac in 2023.



    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
          
     For the Quarter Ended
     December 31,September 30,June 30,March 31,December 31,
      2023  2023  2023 2023  2022 
          
     (dollars in thousands, except per share data)
          
    INCOME STATEMENT     
    Interest income$112,248 $108,568 $98,377$94,217 $94,037 
    Interest expense 56,512  53,313  45,172 37,407  28,819 
    Net interest income 55,736  55,255  53,205 56,810  65,218 
    Provision for credit losses 5,199  3,806  3,606 3,928  - 
    Net interest income after provision for credit losses$ 50,537 $ 51,449 $ 49,599$ 52,882 $ 65,218 
          
    Trust fees$3,084 $2,863 $2,844$2,906 $2,644 
    Investment advisory and management fees 1,052  947  986 879  918 
    Deposit service fees 2,008  2,107  2,034 2,028  2,142 
    Gains on sales of residential real estate loans, net 323  476  500 312  468 
    Gains on sales of government guaranteed portions of loans, net 24  -  - 30  50 
    Capital markets revenue 36,956  15,596  22,490 17,023  11,338 
    Securities gains (losses), net -  -  12 (463) - 
    Earnings on bank-owned life insurance 832  1,807  838 707  755 
    Debit card fees 1,561  1,584  1,589 1,466  1,500 
    Correspondent banking fees 465  450  356 391  257 
    Loan related fee income 845  800  770 651  614 
    Fair value gain (loss) on derivatives (582) (336) 83 (427) (267)
    Other 1,161  299  18 339  800 
    Total noninterest income$ 47,729 $ 26,593 $ 32,520$ 25,842 $ 21,219 
          
    Salaries and employee benefits$41,059 $32,098 $31,459$32,003 $32,594 
    Occupancy and equipment expense 6,789  6,228  6,100 5,914  6,027 
    Professional and data processing fees 4,223  4,456  4,078 3,514  3,769 
    Acquisition costs -  -  - -  (424)
    Post-acquisition compensation, transition and integration costs -  -  - 207  668 
    FDIC insurance, other insurance and regulatory fees 2,115  1,721  1,927 1,374  1,605 
    Loan/lease expense 834  826  652 556  411 
    Net cost of (income from) and gains/losses on operations of other real estate 38  3  - (67) (117)
    Advertising and marketing 1,641  1,429  1,735 1,237  1,562 
    Communication and data connectivity 449  478  471 665  587 
    Supplies 333  335  281 305  337 
    Bank service charges 761  605  621 605  563 
    Correspondent banking expense 300  232  221 210  210 
    Intangibles amortization 716  691  765 766  787 
    Payment card processing 836  733  542 545  599 
    Trust expense 413  432  337 214  166 
    Other 431  814  538 737  353 
    Total noninterest expense$ 60,938 $ 51,081 $ 49,727$ 48,785 $ 49,697 
          
    Net income before income taxes$ 37,328 $ 26,961 $ 32,392$ 29,939 $ 36,740 
    Federal and state income tax expense 4,473  1,840  3,967 2,782  5,834 
    Net income$ 32,855 $ 25,121 $ 28,425$ 27,157 $ 30,906 
          
    Basic EPS$1.96 $1.50 $1.70$1.62 $1.83 
    Diluted EPS$1.95 $1.49 $1.69$1.60 $1.81 
          
    Weighted average common shares outstanding 16,734,080  16,717,303  16,701,950 16,776,289  16,855,973 
    Weighted average common and common equivalent shares outstanding 16,875,952  16,847,951  16,799,527 16,942,132  17,047,976 



    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
        
     For the Year Ended
     December 31,  December 31,
      2023   2022 
        
     (dollars in thousands, except per share data)
        
    INCOME STATEMENT   
    Interest income$413,410  $292,571 
    Interest expense 192,404   61,451 
    Net interest income 221,006   231,120 
    Provision for credit losses (1) 16,539   8,284 
    Net interest income after provision for credit losses$ 204,467  $ 222,836 
        
    Trust fees$11,697  $10,641 
    Investment advisory and management fees 3,864   3,858 
    Deposit service fees 8,177   8,134 
    Gains on sales of residential real estate loans, net 1,611   2,411 
    Gains on sales of government guaranteed portions of loans, net 54   119 
    Capital markets revenue 92,065   41,309 
    Securities losses, net (451)  - 
    Earnings on bank-owned life insurance 4,184   2,056 
    Debit card fees 6,200   5,459 
    Correspondent banking fees 1,662   967 
    Loan related fee income 3,066   2,428 
    Fair value gain (loss) on derivatives (1,262)  1,975 
    Other 1,817   1,372 
    Total noninterest income$ 132,684  $ 80,729 
        
    Salaries and employee benefits$136,619  $115,368 
    Occupancy and equipment expense 25,031   21,975 
    Professional and data processing fees 16,271   16,282 
    Acquisition costs -   3,715 
    Post-acquisition compensation, transition and integration costs 207   5,526 
    FDIC insurance, other insurance and regulatory fees 7,137   5,806 
    Loan/lease expense 2,868   1,829 
    Net cost of (income from) and gains/losses on operations of other real estate (26)  (40)
    Advertising and marketing 6,042   4,958 
    Communication and data connectivity 2,063   2,213 
    Supplies 1,254   1,109 
    Bank service charges 2,592   2,282 
    Correspondent banking expense 963   840 
    Intangibles amortization 2,938   2,854 
    Payment card processing 2,656   1,964 
    Trust expense 1,396   775 
    Other 2,520   2,560 
    Total noninterest expense$ 210,531  $ 190,016 
        
    Net income before income taxes$ 126,620  $ 113,549 
    Federal and state income tax expense 13,062   14,483 
    Net income$ 113,558  $ 99,066 
        
    Basic EPS$6.79  $5.94 
    Diluted EPS$6.73  $5.87 
        
    Weighted average common shares outstanding 16,732,406   16,681,844 
    Weighted average common and common equivalent shares outstanding 16,866,391   16,890,007 
        
    (1) Provision for credit losses for the year ended December 31, 2022 included $11.0 million related to the acquired Guaranty Bank non-PCD loans and $1.4 million related to acquired Guaranty Bank OBS exposures.



    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
             
     As of and for the Quarter Ended For the Year Ended
     December 31,September 30,June 30,March 31,December 31,December 31,December 31,
      2023  2023  2023  2023  2022   2023  2022 
             
     (dollars in thousands, except per share data)
             
    COMMON SHARE DATA        
    Common shares outstanding 16,749,254  16,731,646  16,713,853  16,713,775  16,795,942    
    Book value per common share (1)$52.93 $49.51 $49.22 $47.95 $46.01    
    Tangible book value per common share (Non-GAAP) (2)$43.81 $40.33 $39.99 $38.71 $36.82    
    Closing stock price$58.39 $48.52 $41.03 $43.91 $49.64    
    Market capitalization$977,989 $811,819 $685,769 $733,902 $833,751    
    Market price / book value 110.31% 98.00% 83.36% 91.57% 107.90%   
    Market price / tangible book value 133.29% 120.30% 102.59% 113.43% 134.83%   
    Earnings per common share (basic) LTM (3)$6.78 $6.65 $6.89 $6.06 $5.95    
    Price earnings ratio LTM (3) 8.61 x  7.30 x  5.96 x  7.24 x  8.35 x    
    TCE / TA (Non-GAAP) (4) 8.75% 8.05% 8.28% 8.21% 7.93%   
             
    CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY    
    Beginning balance$828,383 $822,689 $801,494 $772,724 $737,072    
    Net income 32,855  25,121  28,425  27,157  30,906    
    Other comprehensive income (loss), net of tax 25,363  (19,415) (6,336) 9,325  9,959    
    Common stock cash dividends declared (1,004) (1,003) (1,003) (1,010) (1,013)   
    Repurchase and cancellation of shares of common stock as a result of a share repurchase program -  -  (967) (7,719) (5,037)   
    Other (5) 999  991  1,076  1,017  837    
    Ending balance$ 886,596 $ 828,383 $ 822,689 $ 801,494 $ 772,724    
             
    REGULATORY CAPITAL RATIOS (6):        
    Total risk-based capital ratio 14.15% 14.48% 14.64% 14.64% 14.28%   
    Tier 1 risk-based capital ratio 10.16% 10.30% 10.34% 10.23% 9.95%   
    Tier 1 leverage capital ratio 10.03% 9.92% 10.06% 9.73% 9.61%   
    Common equity tier 1 ratio 9.57% 9.68% 9.70% 9.57% 9.29%   
             
    KEY PERFORMANCE RATIOS AND OTHER METRICS         
    Return on average assets (annualized) 1.53% 1.21% 1.44% 1.37% 1.58%  1.39% 1.37%
    Return on average total equity (annualized) 15.35% 11.95% 13.97% 13.67% 16.32%  13.78% 13.24%
    Net interest margin 2.90% 2.89% 2.93% 3.18% 3.62%  2.97% 3.49%
    Net interest margin (TEY) (Non-GAAP)(7) 3.32% 3.31% 3.29% 3.52% 3.93%  3.35% 3.73%
    Efficiency ratio (Non-GAAP) (8) 58.90% 62.41% 58.01% 59.02% 57.50%  59.52% 60.93%
    Gross loans and leases / total assets 76.63% 77.36% 77.54% 77.02% 77.23%  76.63% 77.23%
    Gross loans and leases / total deposits 100.45% 101.72% 96.56% 95.21% 102.58%  100.45% 102.58%
    Effective tax rate 11.98% 6.82% 12.25% 9.29% 15.88%  10.32% 12.75%
    Full-time equivalent employees (9) 996  987  1009  969  973   996  973 
             
    AVERAGE BALANCES         
    Assets$8,535,732 $8,287,813 $7,924,597 $7,906,830 $7,800,229  $8,165,805 $7,206,180 
    Loans/leases 6,483,572  6,476,512  6,219,980  6,165,115  6,043,359   6,337,551  5,604,074 
    Deposits 6,485,154  6,342,339  6,292,481  6,179,644  6,029,455   6,325,790  5,676,546 
    Total stockholders' equity 852,163  837,734  816,882  794,685  757,419   825,557  748,032 
             
    (1) Includes accumulated other comprehensive income (loss).
    (2) Includes accumulated other comprehensive income (loss) and excludes intangible assets. See GAAP to Non-GAAP reconciliations.
    (3) LTM : Last twelve months.
    (4) TCE / TCA : tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations.
    (5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.
    (6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.
    (7) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.
    (8) See GAAP to Non-GAAP reconciliations.
    (9) The increase in full-time equivalent employees in the second quarter of 2023 and the subsequent decline in the third quarter of 2023 includes 19 summer interns.



    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                
    ANALYSIS OF NET INTEREST INCOME AND MARGIN         
                
     For the Quarter Ended
     December 31, 2023 September 30, 2023 December 31, 2022
     Average BalanceInterest Earned or PaidAverage Yield or Cost Average BalanceInterest Earned or PaidAverage Yield or Cost Average BalanceInterest Earned or PaidAverage Yield or Cost
                
     (dollars in thousands)
                
    Fed funds sold$18,644$2575.47% $21,526$2845.23% $30,754$2963.82%
    Interest-bearing deposits at financial institutions 72,439 9865.40%  86,807 1,2055.51%  62,581 5043.20%
    Investment securities - taxable 365,686 4,0804.45%  344,657 3,7884.38%  347,224 3,2863.77%
    Investment securities - nontaxable (1) 650,069 8,3805.15%  600,693 6,9744.64%  624,706 6,7884.35%
    Restricted investment securities 40,625 6706.45%  43,590 6595.91%  39,954 6286.15%
    Loans (1) 6,483,572 105,8306.48%  6,476,512 103,4286.34%  6,043,359 88,0885.78%
    Total earning assets (1)$7,631,035$120,2036.26% $7,573,785$116,3386.10% $7,148,578$99,5905.53%
                
    Interest-bearing deposits$4,465,279$37,0823.29% $4,264,208$33,5633.12% $3,968,081$17,6551.77%
    Time deposits 982,356 10,5594.26%  999,488 10,0033.97%  746,819 3,4761.85%
    Short-term borrowings 1,101 155.18%  1,514 205.28%  19,591 2114.28%
    Federal Home Loan Bank advances 360,000 4,8415.26%  425,870 5,7245.26%  351,033 3,5073.91%
    Subordinated debentures 232,994 3,3085.68%  232,890 3,3075.68%  232,689 3,3125.69%
    Junior subordinated debentures 48,710 7085.68%  48,678 6955.59%  48,583 6575.29%
    Total interest-bearing liabilities$6,090,440$56,5133.68% $5,972,648$53,3123.54% $5,366,796$28,8182.13%
                
    Net interest income (1) $63,690   $63,026   $70,772 
    Net interest margin (2)  2.90%   2.89%   3.62%
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.32%   3.31%   3.93%
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.29%   3.28%   3.61%
                
     For the Year Ended    
     December 31, 2023 December 31, 2022  
     Average BalanceInterest Earned or PaidAverage Yield or Cost Average BalanceInterest Earned or PaidAverage Yield or Cost    
                
     (dollars in thousands)    
                
    Fed funds sold$19,110$9985.22% $14,436$4102.84%    
    Interest-bearing deposits at financial institutions 80,924 4,1375.11%  63,448 1,0891.72%    
    Investment securities - taxable 346,579 14,9274.30%  335,255 12,0783.59%    
    Investment securities - nontaxable (1) 611,924 28,2724.62%  575,457 24,2814.22%    
    Restricted investment securities 39,273 2,3465.89%  35,554 2,0685.73%    
    Loans (1) 6,337,551 390,9676.17%  5,604,074 268,9854.80%    
    Total earning assets (1)$7,435,361$441,6475.94% $6,628,224$308,9114.66%    
                
    Interest-bearing deposits$4,191,913$121,6622.90% $3,715,017$35,3590.95%    
    Time deposits 1,010,827 37,7843.74%  568,245 7,0031.23%    
    Short-term borrowings 2,781 1526.44%  8,637 2993.46%    
    Federal Home Loan Bank advances 323,904 16,7405.10%  286,474 6,9542.39%    
    Other borrowings - -0.00%  1,068 534.96%    
    Subordinated debentures 232,837 13,2305.68%  165,685 9,2005.55%    
    Junior subordinated debentures 48,662 2,8365.75%  45,497 2,5835.60%    
    Total interest-bearing liabilities$5,810,924$192,4043.31% $4,790,623$61,4511.28%    
                
    Net interest income (1) $249,243   $247,460     
    Net interest margin (2)  2.97%   3.49%    
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.35%   3.73%    
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.32%   3.60%    
                
    (1) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% tax rate.  
    (2) See "Select Financial Data - Subsidiaries" for a breakdown of amortization/accretion included in net interest margin for each period presented.    
    (3) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.          



    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
          
      As of
       December 31,   September 30,   June 30,   March 31,   December 31, 
       2023   2023   2023   2023   2022 
          
     (dollars in thousands, except per share data)
          
    ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES     
    Beginning balance $87,669  $85,797  $86,573  $87,706  $90,489 
    Change in ACL for writedown of LHFS to fair value (1)  266   175   (2,277)  (1,709)  - 
    Credit loss expense  2,519   3,260   3,313   2,458   1,013 
    Loans/leases charged off  (3,354)  (1,816)  (1,947)  (2,275)  (3,960)
    Recoveries on loans/leases previously charged off  100   253   135   393   164 
    Ending balance $ 87,200  $ 87,669  $ 85,797  $ 86,573  $ 87,706 
          
    NONPERFORMING ASSETS      
    Nonaccrual loans/leases $32,753  $34,568  $26,062  $22,947  $8,765 
    Accruing loans/leases past due 90 days or more  86   -   83   15   5 
    Total nonperforming loans/leases  32,839   34,568   26,145   22,962   8,770 
    Other real estate owned  1,347   120   -   61   133 
    Other repossessed assets  -   -   -   -   - 
    Total nonperforming assets $ 34,186  $ 34,688  $ 26,145  $ 23,023  $ 8,903 
          
    ASSET QUALITY RATIOS     
    Nonperforming assets / total assets  0.40%  0.41%  0.32%  0.29%  0.11%
    ACL for loans and leases / total loans/leases held for investment  1.33%  1.39%  1.41%  1.43%  1.43%
    ACL for loans and leases / nonperforming loans/leases  265.54%  253.61%  328.16%  377.03%  1000.07%
    Net charge-offs as a % of average loans/leases  0.05%  0.02%  0.03%  0.03%  0.06%
          
    INTERNALLY ASSIGNED RISK RATING (2)     
    Special mention (rating 6) $124,460  $127,202  $116,910  $125,048  $98,333 
    Substandard (rating 7)/Classifed loans (3)  67,313   69,369   63,956   70,866   66,021 
    Doubtful (rating 8)/Classifed loans (3)  -   -   -   -   - 
    Criticized loans (4) $191,773  $196,571  $180,866  $195,914  $164,354 
          
    Classified loans as a % of total loans/leases  1.03%  1.05%  1.00%  1.14%  1.08%
    Criticized loans as a % of total loans/leases  2.93%  2.98%  2.84%  3.16%  2.68%
          
    (1) Certain loans were identified for securitization and transferred from loans to LHFS. The fair values of the loans were less than their carrying values at the date of transfer, resulting in a change to the loan ACL.
    (2) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass (Rating 2) for the government guaranteed portion.
    (3) Classified loans are defined as C&I and CRE loans with internally assigned risk ratings of 7 or 8, regardless of performance.
    (4) Criticized loans are defined as C&I and CRE loans with internally assigned risk ratings of 6, 7, or 8, regardless of performance.



    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                
       For the Quarter EndedFor the Year Ended
       December 31, September 30, December 31, December 31, December 31,
     SELECT FINANCIAL DATA - SUBSIDIARIES  2023   2023   2022   2023   2022 
       (dollars in thousands)
                
     TOTAL ASSETS          
     Quad City Bank and Trust (1) $2,448,957  $2,433,084  $2,312,013     
     m2 Equipment Finance, LLC  345,682   336,180   306,396     
     Cedar Rapids Bank and Trust  2,419,146   2,442,263   2,185,500     
     Community State Bank  1,426,202   1,417,250   1,297,812     
     Guaranty Bank  2,281,296   2,242,638   2,146,474     
                
     TOTAL DEPOSITS          
     Quad City Bank and Trust (1) $1,878,375  $1,973,989  $1,730,187     
     Cedar Rapids Bank and Trust  1,748,516   1,722,905   1,686,959     
     Community State Bank  1,169,921   1,132,724   1,071,146     
     Guaranty Bank  1,771,371   1,722,861   1,587,477     
                
     TOTAL LOANS & LEASES          
     Quad City Bank and Trust (1) $1,983,679  $2,005,770  $1,828,267     
     m2 Equipment Finance, LLC  350,641   341,041   309,930     
     Cedar Rapids Bank and Trust  1,698,447   1,750,986   1,644,989     
     Community State Bank  1,099,262   1,098,479   988,370     
     Guaranty Bank  1,762,027   1,751,072   1,677,245     
                
     TOTAL LOANS & LEASES / TOTAL DEPOSITS          
     Quad City Bank and Trust (1)  106%  102%  106%    
     Cedar Rapids Bank and Trust  97%  102%  98%    
     Community State Bank  94%  97%  92%    
     Guaranty Bank  99%  102%  106%    
                
     TOTAL LOANS & LEASES / TOTAL ASSETS          
     Quad City Bank and Trust (1)  81%  82%  79%    
     Cedar Rapids Bank and Trust  70%  72%  75%    
     Community State Bank  77%  78%  76%    
     Guaranty Bank  77%  78%  78%    
                
     ACL ON LOANS/LEASES AS A PERCENTAGE OF LOANS/LEASES          
     Quad City Bank and Trust (1)  1.48%  1.43%  1.46%    
     m2 Equipment Finance, LLC  3.80%  3.52%  3.11%    
     Cedar Rapids Bank and Trust  1.39%  1.40%  1.49%    
     Community State Bank  1.23%  1.22%  1.38%    
     Guaranty Bank  1.18%  1.20%  1.37%    
                
     RETURN ON AVERAGE ASSETS           
     Quad City Bank and Trust (1)  0.67%  0.97%  1.36%  0.92%  1.55%
     Cedar Rapids Bank and Trust  3.78%  2.28%  2.73%  3.17%  2.63%
     Community State Bank  1.11%  1.38%  1.75%  1.34%  1.40%
     Guaranty Bank (5)  1.41%  1.23%  2.06%  1.16%  1.36%
                
     NET INTEREST MARGIN PERCENTAGE (2)          
     Quad City Bank and Trust (1)  3.41%  3.37%  3.56%  3.37%  3.61%
     Cedar Rapids Bank and Trust  3.84%  3.78%  4.37%  3.83%  3.93%
     Community State Bank (3)  3.74%  3.88%  4.06%  3.87%  3.77%
     Guaranty Bank (4)  3.07%  3.06%  4.58%  3.18%  4.18%
                
     ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET        
     INTEREST MARGIN, NET          
     Cedar Rapids Bank and Trust $-  $-  $98  $(8) $158 
     Community State Bank  (1)  (1)  505  $67   628 
     Guaranty Bank  706   572   5,118  $2,243   7,932 
     QCR Holdings, Inc. (6)  (32)  (32)  (33) $(129)  (137)
                
    (1) Quad City Bank and Trust amounts include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC is also presented separately for certain (applicable) measurements.
    (2) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% federal tax rate.  
    (3) Community State Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 3.74% for the quarter ended December 31, 2023, 3.88% for the quarter ended September 30, 2023 and 3.73% for the quarter ended December 31, 2022.
    (4) Guaranty Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.95% for the quarter ended December 31, 2023, 2.97% for the quarter ended September 30, 2023 and 3.58% for the quarter ended December 31, 2022.
    (5) Adjusted ROAA excluding non-core adjustments for the Guaranty Bank acquisition (non-GAAP) would have been 1.91% for the year ended December 31, 2022.
    (6) Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.



    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                 
      As of
       December 31,  September 30, June 30, March 31, December 31,
    GAAP TO NON-GAAP RECONCILIATIONS  2023   2023   2023   2023   2022 
      (dollars in thousands, except per share data)
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)            
                 
    Stockholders' equity (GAAP) $886,596  $828,383  $822,689  $801,494  $772,724 
    Less: Intangible assets  152,848   153,564   154,255   154,467   154,366 
    Tangible common equity (non-GAAP) $733,748  $674,819  $668,434  $647,027  $618,358 
                 
    Total assets (GAAP) $8,538,894  $8,540,057  $8,226,673  $8,036,904  $7,948,837 
    Less: Intangible assets  152,848   153,564   154,255   154,467   154,366 
    Tangible assets (non-GAAP) $8,386,046  $8,386,493  $8,072,418  $7,882,437  $7,794,471 
                 
    Tangible common equity to tangible assets ratio (non-GAAP) 8.75%  8.05%  8.28%  8.21%  7.93%
                 
    (1) This ratio is a non-GAAP financial measure. The Company's management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders' equity and total assets, which are the most directly comparable GAAP financial measures.



    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                   
    GAAP TO NON-GAAP RECONCILIATIONS For the Quarter Ended For the Year Ended
      December 31, September 30, June 30, March 31, December 31, December 31, December 31,
    ADJUSTED NET INCOME (1)  2023   2023   2023   2023   2022   2023   2022 
      (dollars in thousands, except per share data)
                   
    Net income (GAAP) $32,855  $25,121  $28,425  $27,157  $30,906  $113,558  $99,066 
                   
    Less non-core items (post-tax) (2):              
    Income:              
    Securities gains (losses), net  -   -   9   (366)  -   (356)  - 
    Fair value gain (loss) on derivatives, net  (460)  (265)  66   (337)  (211)  (997)  1,560 
    Total non-core income (non-GAAP) $(460) $(265) $75  $(703) $(211) $(1,353) $1,560 
                   
    Expense:              
    Acquisition costs (2)  -   -   -   -   (517)  -   3,198 
    Post-acquisition compensation, transition and integration costs  -   -   -   164   529   164   4,366 
    Separation agreement  -   -   -   -   -   -   - 
    CECL Day 2 provision for credit losses on acquired non-PCD loans (3)  -   -   -   -   -   -   8,651 
    CECL Day 2 provision for credit losses provision on acquired OBS exposure (3)  -   -   -   -   -   -   1,140 
    Total non-core expense (non-GAAP) $-  $-  $-  $164  $12  $164  $17,355 
                   
    Adjusted net income (non-GAAP) (1) $ 33,315  $ 25,386  $ 28,350  $ 28,024  $ 31,129  $ 115,075  $ 114,861 
                   
    ADJUSTED EARNINGS PER COMMON SHARE (1)              
                   
    Adjusted net income (non-GAAP) (from above) $33,315  $25,386  $28,350  $28,024  $31,129  $115,075  $114,861 
                   
    Weighted average common shares outstanding  16,734,080   16,717,303   16,701,950   16,776,289   16,855,973   16,732,406   16,681,844 
    Weighted average common and common equivalent shares outstanding  16,875,952   16,847,951   16,799,527   16,942,132   17,047,976   16,866,391   16,890,007 
                   
    Adjusted earnings per common share (non-GAAP):              
    Basic $ 1.99  $ 1.52  $ 1.70  $ 1.67  $ 1.85  $ 6.88  $ 6.89 
    Diluted $ 1.97  $ 1.51  $ 1.69  $ 1.65  $ 1.83  $ 6.82  $ 6.80 
                   
    ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)              
                   
    Adjusted net income (non-GAAP) (from above) $33,315  $25,386  $28,350  $28,024  $31,129  $115,075  $114,861 
                   
    Average Assets $8,535,732  $8,287,813  $7,924,597  $7,906,830  $7,800,229  $8,165,805  $7,206,180 
                   
    Adjusted return on average assets (annualized) (non-GAAP)  1.56%  1.23%  1.43%  1.42%  1.60%  1.41%  1.59%
    Adjusted return on average equity (annualized) (non-GAAP)  15.64%  12.12%  13.88%  14.11%  16.44%  13.94%  15.36%
                   
    NET INTEREST MARGIN (TEY) (4)              
                   
    Net interest income (GAAP) $55,736  $55,255  $53,205  $56,810  $65,218  $221,006  $231,120 
    Plus: Tax equivalent adjustment (5)  7,954   7,771   6,542   6,057   5,554   28,237   16,340 
    Net interest income - tax equivalent (Non-GAAP) $63,690  $63,026  $59,747  $62,867  $70,772  $249,243  $247,460 
    Less: Acquisition accounting net accretion  673   539   134   828   5,688   2,173   8,581 
    Adjusted net interest income $63,017  $62,487  $59,613  $62,039  $65,084  $247,070  $238,879 
                   
    Average earning assets $7,631,035  $7,573,785  $7,283,286  $7,247,605  $7,148,578  $7,435,361  $6,628,224 
                   
    Net interest margin (GAAP)  2.90%  2.89%  2.93%  3.18%  3.62%  2.97%  3.49%
    Net interest margin (TEY) (Non-GAAP)  3.32%  3.31%  3.29%  3.52%  3.93%  3.35%  3.73%
    Adjusted net interest margin (TEY) (Non-GAAP)  3.29%  3.28%  3.28%  3.47%  3.61%  3.32%  3.60%
                   
    EFFICIENCY RATIO (6)              
                   
    Noninterest expense (GAAP) $60,938  $51,081  $49,727  $48,785  $49,697  $210,531  $190,016 
                   
    Net interest income (GAAP) $55,736  $55,255  $53,205  $56,810  $65,218  $221,006 $$231,120 
    Noninterest income (GAAP)  47,729   26,593   32,520   25,842   21,219   132,684   80,729 
    Total income $103,465  $81,848  $85,725  $82,652  $86,437  $353,690  $311,849 
                   
    Efficiency ratio (noninterest expense/total income) (Non-GAAP)  58.90%  62.41%  58.01%  59.02%  57.50%  59.52%  60.93%
                   
    (1) Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company's management believes that these measurements are important to investors as they exclude non-core or non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. In compliance with applicable rules of the SEC, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.
    (2) Non-core or nonrecurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of acquisition costs which have an estimated effective federal tax rate of 13.62%.
    (3) The CECL Day 2 provision for credit losses on acquired non-PCD loans and OBS exposures resulted from the Guaranty Bank acquisition on April 1, 2022.
    (4) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
    (5) Net interest margin (TEY) is a non-GAAP financial measure. The Company's management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it's difficult to provide a more realistic run-rate for future periods.
    (6) Efficiency ratio is a non-GAAP measure. The Company's management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures.

     

     


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