• QCR Holdings, Inc. Announces Net Income of $25.1 Million for the Third Quarter of 2023

    المصدر: Nasdaq GlobeNewswire / 25 أكتوبر 2023 15:05:25   America/Chicago

    Third Quarter 2023 Highlights

    • Net income of $25.1 million, or $1.49 per diluted share
    • Adjusted net income (non-GAAP) of $25.4 million, or $1.51 per diluted share
    • Net interest income of $55.3 million, up 3.9% from the second quarter
    • NIM (TEY)(non-GAAP) of 3.31% increased by 2 basis points from the prior quarter while Adjusted NIM (TEY)(non-GAAP) of 3.28% remained static
    • Capital Markets Revenue of $15.6 million and $55.1 million year-to-date
    • Tangible book value (non-GAAP) per share increased $0.34, or 3.4% annualized

    MOLINE, Ill., Oct. 25, 2023 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced net income of $25.1 million and diluted earnings per share (“EPS”) of $1.49 for the third quarter of 2023, compared to net income of $28.4 million and diluted EPS of $1.69 for the second quarter of 2023.

    Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the third quarter of 2023 were $25.4 million and $1.51, respectively. For the second quarter of 2023, adjusted net income (non-GAAP) was $28.4 million and adjusted diluted EPS (non-GAAP) was $1.69. For the third quarter of 2022, adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $28.9 million and $1.69, respectively.

     For the Quarter Ended
     September 30,June 30,September 30,
    $ in millions (except per share data)202320232022
    Net Income$25.1$28.4$29.3
    Diluted EPS$1.49$1.69$1.71
    Adjusted Net Income (non-GAAP)*$25.4$28.4$28.9
    Adjusted Diluted EPS (non-GAAP)*$1.51$1.69$1.69

    *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 delivered solid third quarter results, highlighted by a static net interest margin, robust loan growth and significant fee income,” said Larry J. Helling, Chief Executive Officer. “In addition, our deposit base is stable, our capital ratios are strong, and our asset quality remains sound. Our third quarter and year-to-date results demonstrate the continued strength of our franchise, our commitment to relationship banking and the successful execution of our strategic initiatives.”

    Net Interest Income Grew 3.9%

    Net interest income for the third quarter of 2023 totaled $55.3 million, an increase of $2.1 million from the second quarter, and compared to $60.8 million for the third quarter of 2022. Acquisition-related net accretion totaled $539 thousand for the third quarter of 2023, compared to $134 thousand in the second quarter.

    In the third quarter of 2023, net interest margin (“NIM”) was 2.89% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP) was 3.31%, compared to 2.93% and 3.29% in the prior quarter, respectively. Adjusted NIM TEY (non-GAAP) of 3.28% was unchanged.  

    “Our adjusted tax-equivalent NIM was static on a linked-quarter basis, which was at the top end of our guidance range,” said Todd A. Gipple, President and Chief Financial Officer. “During the quarter, our loan yield expansion accelerated while 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 this stabilization of our deposit mix and believe that it will continue to benefit our net interest margin going forward.”
      

    Noninterest Income of $26.6 Million Including $15.6 Million of Capital Markets Revenue

    Noninterest income for the third quarter of 2023 totaled $26.6 million, down from the very strong $32.5 million for the second quarter of 2023. The Company generated $15.6 million of capital markets revenue in the quarter, as compared to the outsized performance of $22.5 million in the prior quarter. Wealth management revenue was $3.8 million for the quarter, consistent with the prior quarter.

    “Capital markets revenue was $15.6 million in the third quarter, which outperformed our annualized guidance range,” added Mr. Gipple. “Capital markets revenue from swaps continues to benefit from the strong demand for affordable housing. This source of fee income has been consistent for the past several years. Based on decades of stability in the low-income housing tax credit industry and our own experience, we believe that this business will perform well throughout various economic cycles.”

    Noninterest Expenses Remain Well-Controlled

    Noninterest expense for the third quarter of 2023 totaled $51.1 million, an increase of 2.8% from $49.7 million for the second quarter of 2023, compared to $47.7 million for the third quarter of 2022. The linked-quarter increase was primarily due to higher variable employee compensation related to year-to-date performance, increased professional and data processing fees and other expenses related to fixed asset disposals. These increases were partially offset by lower advertising and marketing expenses.  

    Continued Strong Loan Growth

    During the third quarter of 2023, the Company’s total loans and leases grew $227.0 million to a total of $6.6 billion, or 14.2% on an annualized basis. “Our loan growth during the quarter was driven primarily by strength in our low-income housing tax credit lending business as well as growth in our traditional lending business. Our low-income housing tax credit clients continue to experience strong demand for their projects as the need for affordable housing far exceeds supply,” added Mr. Helling.

    “While our third quarter loan growth was exceptional, we are maintaining our guidance for growth in loans held for investment for the fourth quarter to be in the range of 9 to 12% on an annualized basis as our pipeline continues to be strong,” stated Mr. Helling. “As we have previously discussed, we have two low-income housing tax credit loan securitizations scheduled to close in the fourth quarter, a tax-exempt pool of $130 million and a taxable pool totaling $135 million. Both are now scheduled for closing prior to the end of November. We plan to continue to utilize securitizations on an ongoing basis as we view this as an effective tool in managing our liquidity and capital. It will also provide ongoing capacity for continued low-income housing tax credit production and the corresponding capital markets revenue that we generate from this business,” added Mr. Helling.

    Asset Quality Remains Strong

    “Our asset quality continues to be strong as the ratio of nonperforming assets to total assets was 0.41% at quarter-end and compares favorably to our long-term historical averages. We remain optimistic about the resilience of our Midwest markets as unemployment remains below the national average and business activity has continued at a healthy pace across our footprint,” said Mr. Helling.

    Nonperforming assets (“NPAs”) increased $8.5 million during the quarter to $34.7 million. “The majority of the increase in NPAs was driven by three client relationships from unrelated industries. Approximately one-third of our NPAs consist of one relationship and we believe that this credit will be resolved without a loss,” added Mr. Helling. The Company’s criticized loans and classified loans to total loans and leases on September 30, 2023 were 2.98% and 1.05%, respectively, as compared to 2.84% and 1.00% as of June 30, 2023.

    The Company recorded a total provision for credit losses of $3.8 million during the quarter which included $3.3 million of provision for loans/leases primarily driven by loan growth during the quarter. As of September 30, 2023, the allowance for credit losses to total loans/leases held for investment was 1.39%.

    Stable Core Deposits and Liquidity

    During the third quarter of 2023, the Company’s core deposits, which exclude brokered deposits, remained relatively stable. Core deposits decreased slightly by $9.0 million, or 0.1%, after growing $339.3 million, or 23.0% on an annualized basis during the second quarter of 2023. Total uninsured and uncollateralized deposits remain low at 20.1% of total deposits as of the end of the third quarter as compared to 19.9% as of the end of the second quarter. The Company maintained approximately $3.0 billion of available liquidity sources at quarter-end, which includes $1.1 billion of immediately available liquidity.

    Continued Strong Capital Levels

    As of September 30, 2023, the Company’s total risk-based capital ratio was 14.40%, the common equity tier 1 ratio was 9.63% and the tangible common equity to tangible assets ratio (non-GAAP) was 8.05%. By comparison, these respective ratios were 14.69%, 9.73% and 8.28% as of June 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 $0.34, or 3.4% annualized during the third quarter. Accumulated other comprehensive income (“AOCI”) declined $19.4 million during the quarter due to a decrease in the value of the Company’s available for sale securities portfolio and certain derivatives resulting from the change in interest rates during the third quarter. While the net decline in AOCI diluted the Company’s tangible common equity, strong earnings more than offset this impact, which led to the increase in tangible book value per share (non-GAAP).

    Conference Call Details

    The Company will host an earnings call/webcast tomorrow, October 26, 2023, 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 November 2, 2023. The replay access information is 877-344-7529 (international 412-317-0088); access code 7582498. 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 September 30, 2023, the Company had $8.5 billion in assets, $6.6 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 (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. Gipple                                
    President and Chief Financial Officer                        
    (309) 743-7745                                
    tgipple@qcrh.com


    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
           
      As of
      September 30,June 30,March 31,December 31,September 30,
       2023  2023  2023  2022  2022 
           
      (dollars in thousands)
           
    CONDENSED BALANCE SHEET      
           
    Cash and due from banks $104,265 $84,084 $64,295 $59,723 $86,282 
    Federal funds sold and interest-bearing deposits  80,650  175,012  253,997  124,270  71,043 
    Securities, net of allowance for credit losses  896,394  882,888  877,446  928,102  879,450 
    Loans receivable held for sale (1)  278,893  295,057  140,633  1,480  3,054 
    Loans/leases receivable held for investment  6,327,414  6,084,263  6,049,389  6,137,391  6,005,556 
    Allowance for credit losses  (87,669) (85,797) (86,573) (87,706) (90,489)
    Intangibles  14,537  15,228  15,993  16,759  17,546 
    Goodwill  139,027  139,027  138,474  137,607  137,607 
    Derivatives  291,295  170,294  130,350  177,631  185,037 
    Other assets  495,251  466,617  452,900  453,580  434,963 
    Total assets $ 8,540,057 $ 8,226,673 $ 8,036,904 $ 7,948,837 $ 7,730,049 
           
    Total deposits $6,494,852 $6,606,720 $6,501,663 $5,984,217 $5,941,035 
    Total borrowings  712,126  418,368  417,480  825,894  701,491 
    Derivatives  320,220  195,841  150,401  200,701  209,479 
    Other liabilities  184,476  183,055  165,866  165,301  140,972 
    Total stockholders' equity  828,383  822,689  801,494  772,724  737,072 
    Total liabilities and stockholders' equity $ 8,540,057 $ 8,226,673 $ 8,036,904 $ 7,948,837 $ 7,730,049 
           
    ANALYSIS OF LOAN PORTFOLIO      
    Loan/lease mix:      
    Commercial and industrial - revolving $299,588 $304,617 $307,612 $296,869 $332,996 
    Commercial and industrial - other  1,381,967  1,308,853  1,322,384  1,371,590  1,342,949 
    Commercial and industrial - other - LIHTC  105,601  93,700  97,947  80,103  73,047 
    Total commercial and industrial  1,787,156  1,707,170  1,727,943  1,748,562  1,748,992 
    Commercial real estate, owner occupied  610,618  609,717  616,922  629,367  627,558 
    Commercial real estate, non-owner occupied  938,609  946,427  978,309  958,825  919,966 
    Commercial real estate, non-owner occupied - LIHTC  16,943  17,387  4,407  4,414  910 
    Construction and land development  472,695  437,682  448,261  448,986  444,016 
    Construction and land development - LIHTC  921,359  870,084  759,924  743,075  705,487 
    Multi-family  282,541  280,418  229,370  236,043  218,807 
    Multi-family - LIHTC  874,439  820,376  740,500  727,760  714,311 
    Direct financing leases  34,401  32,937  35,373  31,889  33,503 
    1-4 family real estate  529,179  524,629  521,691  499,529  486,547 
    1-4 family real estate - LIHTC  10,752  10,776  10,800  -  961 
    Consumer  127,615  121,717  116,522  110,421  107,552 
    Total loans/leases $6,606,307 $6,379,320 $6,190,022 $6,138,871 $6,008,610 
    Less allowance for credit losses  87,669  85,797  86,573  87,706  90,489 
    Net loans/leases $ 6,518,638 $ 6,293,523 $ 6,103,449 $ 6,051,165 $ 5,918,121 
           
    ANALYSIS OF SECURITIES PORTFOLIO      
    Securities mix:      
    U.S. government sponsored agency securities $16,002 $18,942 $19,320 $16,981 $20,527 
    Municipal securities  764,017  743,608  731,689  779,450  724,204 
    Residential mortgage-backed and related securities  57,946  60,958  63,104  66,215  68,844 
    Asset backed securities  16,326  17,393  17,967  18,728  19,630 
    Other securities  43,272  43,156  46,535  46,908  46,443 
    Total securities $897,563 $884,057 $878,615 $928,282 $879,648 
    Less allowance for credit losses  1,169  1,169  1,169  180  198 
    Net securities $ 896,394 $ 882,888 $ 877,446 $ 928,102 $ 879,450 
           
    ANALYSIS OF DEPOSITS      
    Deposit mix:      
    Noninterest-bearing demand deposits $1,027,791 $1,101,605 $1,189,858 $1,262,981 $1,315,555 
    Interest-bearing demand deposits  4,416,725  4,374,847  4,033,193  3,875,497  3,904,303 
    Time deposits  788,692  765,801  679,946  744,593  672,133 
    Brokered deposits  261,644  364,467  598,666  101,146  49,044 
    Total deposits $ 6,494,852 $ 6,606,720 $ 6,501,663 $ 5,984,217 $ 5,941,035 
           
    ANALYSIS OF BORROWINGS      
    Borrowings mix:      
    Term FHLB advances $135,000 $135,000 $135,000 $- $- 
    Overnight FHLB advances  295,000  -  -  415,000  335,000 
    Other short-term borrowings  470  1,850  1,100  129,630  85,180 
    Subordinated notes  232,958  232,852  232,746  232,662  232,743 
    Junior subordinated debentures  48,698  48,666  48,634  48,602  48,568 
    Total borrowings $ 712,126 $ 418,368 $ 417,480 $ 825,894 $ 701,491 
           
    (1) Loans with a fair value of $278.0 million, $291.0 million and $139.2 million have been identified for securitization and are included in LHFS at September 30, 2023, June 30, 2023 and March 31, 2023 respectively.
             


    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
           
      For the Quarter Ended
      September 30,June 30,March 31,December 31,September 30,
       2023  2023 2023  2022  2022
           
      (dollars in thousands, except per share data)
           
    INCOME STATEMENT      
    Interest income $108,568 $98,377$94,217 $94,037 $79,267
    Interest expense  53,313  45,172 37,407  28,819  18,498
    Net interest income  55,255  53,205 56,810  65,218  60,769
    Provision for credit losses  3,806  3,606 3,928  -  -
    Net interest income after provision for credit losses $ 51,449 $ 49,599$ 52,882 $ 65,218 $ 60,769
           
           
    Trust fees $2,863 $2,844$2,906 $2,644 $2,537
    Investment advisory and management fees  947  986 879  918  921
    Deposit service fees  2,107  2,034 2,028  2,142  2,214
    Gains on sales of residential real estate loans, net  476  500 312  468  641
    Gains on sales of government guaranteed portions of loans, net  -  - 30  50  50
    Capital markets revenue  15,596  22,490 17,023  11,338  10,545
    Securities gains (losses), net  -  12 (463) -  -
    Earnings on bank-owned life insurance  1,807  838 707  755  605
    Debit card fees  1,584  1,589 1,466  1,500  1,453
    Correspondent banking fees  450  356 391  257  189
    Loan related fee income  800  770 651  614  652
    Fair value gain (loss) on derivatives  (336) 83 (427) (267) 904
    Other  299  18 339  800  384
    Total noninterest income $ 26,593 $ 32,520$ 25,842 $ 21,219 $ 21,095
           
           
    Salaries and employee benefits $32,098 $31,459$32,003 $32,594 $29,175
    Occupancy and equipment expense  6,228  6,100 5,914  6,027  6,033
    Professional and data processing fees  4,456  4,078 3,514  3,769  4,477
    Acquisition costs  -  - -  (424) 315
    Post-acquisition compensation, transition and integration costs  -  - 207  668  62
    FDIC insurance, other insurance and regulatory fees  1,721  1,927 1,374  1,605  1,497
    Loan/lease expense  826  652 556  411  390
    Net cost of (income from) and gains/losses on operations of other real estate  3  - (67) (117) 19
    Advertising and marketing  1,429  1,735 1,237  1,562  1,437
    Communication and data connectivity  478  471 665  587  639
    Supplies  335  281 305  337  289
    Bank service charges  605  621 605  563  568
    Correspondent banking expense  232  221 210  210  218
    Intangibles amortization  691  765 766  787  787
    Payment card processing  733  542 545  599  477
    Trust expense  432  337 214  166  227
    Other  814  538 737  353  1,136
    Total noninterest expense $ 51,081 $ 49,727$ 48,785 $ 49,697 $ 47,746
           
    Net income before income taxes $ 26,961 $ 32,392$ 29,939 $ 36,740 $ 34,118
    Federal and state income tax expense  1,840  3,967 2,782  5,834  4,824
    Net income $ 25,121 $ 28,425$ 27,157 $ 30,906 $ 29,294
           
    Basic EPS $1.50 $1.70$1.62 $1.83 $1.73
    Diluted EPS $1.49 $1.69$1.60 $1.81 $1.71
           
    Weighted average common shares outstanding  16,717,303  16,701,950 16,776,289  16,855,973  16,900,968
    Weighted average common and common equivalent shares outstanding  16,847,951  16,799,527 16,942,132  17,047,976  17,110,691
           


    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
         
      For the Nine Months Ended
      September 30, September 30,
       2023   2022
         
      (dollars in thousands, except per share data)
         
    INCOME STATEMENT    
    Interest income $301,162  $198,534
    Interest expense  135,892   32,632
    Net interest income  165,270   165,902
    Provision for credit losses (1)  11,340   8,284
    Net interest income after provision for credit losses $ 153,930  $ 157,618
         
         
    Trust fees $8,613  $7,997
    Investment advisory and management fees  2,812   2,940
    Deposit service fees  6,169   5,992
    Gains on sales of residential real estate loans, net  1,288   1,943
    Gains on sales of government guaranteed portions of loans, net  30   69
    Capital markets revenue  55,109   29,971
    Securities losses, net  (451)  -
    Earnings on bank-owned life insurance  3,352   1,301
    Debit card fees  4,639   3,959
    Correspondent banking fees  1,197   710
    Loan related fee income  2,221   1,814
    Fair value gain (loss) on derivatives  (680)  2,242
    Other  656   572
    Total noninterest income $ 84,955  $ 59,510
         
         
    Salaries and employee benefits $95,560  $82,774
    Occupancy and equipment expense  18,242   15,948
    Professional and data processing fees  12,048   12,513
    Acquisition costs  -   4,139
    Post-acquisition compensation, transition and integration costs  207   4,858
    FDIC insurance, other insurance and regulatory fees  5,022   4,201
    Loan/lease expense  2,034   1,418
    Net cost of (income from) and gains/losses on operations of other real estate  (64)  77
    Advertising and marketing  4,401   3,396
    Communication and data connectivity  1,614   1,626
    Supplies  921   772
    Bank service charges  1,831   1,719
    Correspondent banking expense  663   630
    Intangibles amortization  2,222   2,067
    Payment card processing  1,820   1,365
    Trust expense  983   609
    Other  2,089   2,207
    Total noninterest expense $ 149,593  $ 140,319
         
    Net income before income taxes $ 89,292  $ 76,809
    Federal and state income tax expense  8,589   8,649
    Net income $ 80,703  $ 68,160
         
    Basic EPS $4.82  $4.25
    Diluted EPS $4.79  $4.20
         
         
    Weighted average common shares outstanding  16,731,847   16,030,371
    Weighted average common and common equivalent shares outstanding 16,863,203   16,243,921
         
    (1) Provision for credit losses for the nine months ended September 30, 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 Nine Months Ended
      September 30,June 30,March 31,December 31,September 30,September 30,September 30,
       2023  2023  2023  2022  2022   2023  2022 
              
      (dollars in thousands, except per share data)
              
    COMMON SHARE DATA         
    Common shares outstanding  16,731,646  16,713,853  16,713,775  16,795,942  16,885,485    
    Book value per common share (1) $49.51 $49.22 $47.95 $46.01 $43.65    
    Tangible book value per common share (Non-GAAP) (2) $40.33 $39.99 $38.71 $36.82 $34.46    
    Closing stock price $48.52 $41.03 $43.91 $49.64 $50.94    
    Market capitalization $811,819 $685,769 $733,902 $833,751 $860,147    
    Market price / book value  98.00% 83.36% 91.57% 107.90% 116.70%   
    Market price / tangible book value  120.30% 102.59% 113.43% 134.83% 147.81%   
    Earnings per common share (basic) LTM (3) $6.66 $6.89 $6.06 $5.95 $5.86    
    Price earnings ratio LTM (3) 7.29 x5.96 x7.24 x8.35 x8.70 x   
    TCE / TA (Non-GAAP) (4)  8.05% 8.28% 8.21% 7.93% 7.68%   
              
              
    CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY     
    Beginning balance $822,689 $801,494 $772,724 $737,072 $743,138    
    Net income  25,121  28,425  27,157  30,906  29,294    
    Other comprehensive income (loss), net of tax  (19,415) (6,336) 9,325  9,959  (24,783)   
    Common stock cash dividends declared  (1,003) (1,003) (1,010) (1,013) (1,012)   
    Repurchase and cancellation of shares of common stock as a result of a share repurchase program  -  (967) (7,719) (5,037) (10,485)   
    Other (5)  991  1,076  1,017  837  920    
    Ending balance $ 828,383 $ 822,689 $ 801,494 $ 772,724 $ 737,072    
              
              
    REGULATORY CAPITAL RATIOS (6):         
    Total risk-based capital ratio  14.40% 14.69% 14.68% 14.28% 14.38%   
    Tier 1 risk-based capital ratio  10.25% 10.38% 10.27% 9.95% 9.88%   
    Tier 1 leverage capital ratio  9.92% 10.06% 9.73% 9.61% 9.56%   
    Common equity tier 1 ratio  9.63% 9.73% 9.60% 9.29% 9.21%   
              
              
    KEY PERFORMANCE RATIOS AND OTHER METRICS          
    Return on average assets (annualized)  1.21% 1.44% 1.37% 1.58% 1.53%  1.34% 1.30%
    Return on average total equity (annualized)  11.95% 13.97% 13.67% 16.32% 15.39%  13.23% 12.20%
    Net interest margin  2.89% 2.93% 3.18% 3.62% 3.46%  3.00% 3.44%
    Net interest margin (TEY) (Non-GAAP)(7)  3.31% 3.29% 3.52% 3.93% 3.71%  3.37% 3.66%
    Efficiency ratio (Non-GAAP) (8)  62.41% 58.01% 59.02% 57.50% 58.32%  59.78% 62.25%
    Gross loans and leases / total assets  77.36% 77.54% 77.02% 77.23% 77.73%  77.36% 77.73%
    Gross loans and leases / total deposits  101.72% 96.56% 95.21% 102.58% 101.14%  101.72% 101.14%
    Effective tax rate  6.82% 12.25% 9.29% 15.88% 14.14%  9.62% 11.26%
    Full-time equivalent employees (9)  987  1009  969  973  956   987  956 
              
              
    AVERAGE BALANCES          
    Assets $8,287,813 $7,924,597 $7,906,830 $7,800,229 $7,652,463  $8,041,141 $7,005,988 
    Loans/leases  6,476,512  6,219,980  6,165,115  6,043,359  5,916,100   6,288,343  5,456,037 
    Deposits  6,342,339  6,292,481  6,179,644  6,029,455  5,891,198   6,272,083  5,557,617 
    Total stockholders' equity  837,734  816,882  794,685  757,419  761,428   816,591  744,869 
              
              
    (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
      September 30, 2023 June 30, 2023 September 30, 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 $21,526$2845.23% $16,976$2235.27% $16,224$1002.45%
    Interest-bearing deposits at financial institutions 86,807 1,2055.51%  90,814 1,1234.96%  54,799 3812.76%
    Investment securities - taxable 344,657 3,7884.38%  342,991 3,6934.30%  354,366 3,3043.71%
    Investment securities - nontaxable (1) 600,693 6,9744.64%  577,494 6,2174.31%  591,730 6,2984.26%
    Restricted investment securities 43,590 6595.91%  35,031 5065.71%  42,638 6746.18%
    Loans (1)  6,476,512 103,4286.34%  6,219,980 93,1596.01%  5,916,100 72,9694.89%
    Total earning assets (1)$7,573,785$116,3386.10% $7,283,286$104,9215.78% $6,975,857$83,7264.76%
                 
    Interest-bearing deposits$4,264,208$33,5633.12% $3,965,592$27,2272.75% $3,862,556$10,8891.12%
    Time deposits  999,488 10,0033.97%  1,190,440 11,2193.78%  593,490 1,6811.12%
    Short-term borrowings 1,514 205.28%  1,980 346.82%  11,376 842.94%
    Federal Home Loan Bank advances 425,870 5,7245.26%  211,593 2,6534.96%  418,239 2,5842.42%
    Other borrowings - -0.00%  - -0.00%  4,239 534.93%
    Subordinated debentures 232,890 3,3075.68%  232,782 3,3035.68%  181,177 2,5185.56%
    Junior subordinated debentures 48,678 6955.59%  48,647 7386.00%  48,551 6895.56%
    Total interest-bearing liabilities$5,972,648$53,3123.54% $5,651,034$45,1743.20% $5,119,628$18,4981.43%
                 
    Net interest income (1) $63,026   $59,747   $65,228 
    Net interest margin (2)  2.89%   2.93%   3.46%
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.31%   3.29%   3.71%
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.28%   3.28%   3.65%
                 
                 
      For the Nine Months Ended    
      September 30, 2023 September 30, 2022  
      Average BalanceInterest Earned or PaidAverage Yield or Cost Average BalanceInterest Earned or PaidAverage Yield or Cost    
                 
      (dollars in thousands)    
                 
    Fed funds sold $19,267$7415.14% $8,937$1141.70%    
    Interest-bearing deposits at financial institutions 83,783 3,1515.03%  63,740 5841.23%    
    Investment securities - taxable 340,140 10,8474.24%  331,222 8,7923.53%    
    Investment securities - nontaxable (1) 599,070 19,8924.43%  558,860 17,4944.17%    
    Restricted investment securities 38,817 1,6775.70%  34,071 1,4395.57%    
    Loans (1)  6,288,343 285,1366.06%  5,456,037 180,8964.43%    
    Total earning assets (1)$7,369,420$321,4445.83% $6,452,867$209,3194.33%    
                 
    Interest-bearing deposits$4,099,789$84,5652.76% $3,629,735$17,7040.65%    
    Time deposits  1,020,421 27,2253.57%  508,067 3,5270.93%    
    Short-term borrowings 3,588 1525.66%  4,945 872.37%    
    Federal Home Loan Bank advances 311,740 11,8985.03%  264,718 3,4471.72%    
    Other borrowings - -0.00%  1,429 534.90%    
    Subordinated debentures 232,784 9,9225.68%  143,104 5,8885.49%    
    Junior subordinated debentures 48,646 2,1295.77%  44,457 1,9265.71%    
    Total interest-bearing liabilities$5,716,968$135,8913.17% $4,596,455$32,6320.95%    
                 
    Net interest income (1) $185,553   $176,687     
    Net interest margin (2)  3.00%   3.44%    
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.37%   3.66%    
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.34%   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
      September 30,June 30,March 31,December 31,September 30,
       2023  2023  2023  2022  2022 
           
      (dollars in thousands, except per share data)
           
    ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES      
    Beginning balance $85,797 $86,573 $87,706 $90,489 $92,425 
    Change in ACL for writedown of LHFS to fair value (1)  175  (2,277) (1,709) -  - 
    Credit loss expense  3,260  3,313  2,458  1,013  331 
    Loans/leases charged off  (1,816) (1,947) (2,275) (3,960) (2,489)
    Recoveries on loans/leases previously charged off  253  135  393  164  222 
    Ending balance $ 87,669 $ 85,797 $ 86,573 $ 87,706 $ 90,489 
           
           
    NONPERFORMING ASSETS       
    Nonaccrual loans/leases $34,568 $26,062 $22,947 $8,765 $17,511 
    Accruing loans/leases past due 90 days or more  -  83  15  5  3 
    Total nonperforming loans/leases  34,568  26,145  22,962  8,770  17,514 
    Other real estate owned  120  -  61  133  177 
    Other repossessed assets  -  -  -  -  340 
    Total nonperforming assets $ 34,688 $ 26,145 $ 23,023 $ 8,903 $ 18,031 
           
           
    ASSET QUALITY RATIOS      
    Nonperforming assets / total assets  0.41% 0.32% 0.29% 0.11% 0.23%
    ACL for loans and leases / total loans/leases held for investment  1.39% 1.41% 1.43% 1.43% 1.51%
    ACL for loans and leases / nonperforming loans/leases  253.61% 328.16% 377.03% 1000.07% 516.67%
    Net charge-offs as a % of average loans/leases  0.02% 0.03% 0.03% 0.06% 0.04%
           
           
           
    INTERNALLY ASSIGNED RISK RATING (2)      
    Special mention (rating 6) $127,202 $116,910 $125,048 $98,333 $63,973 
    Substandard (rating 7)/Classified loans (3)  69,369  63,956  70,866  66,021  77,317 
    Doubtful (rating 8)/Classified loans (3)  -  -  -  -  - 
    Criticized loans (4) $196,571 $180,866 $195,914 $164,354 $141,290 
           
    Classified loans as a % of total loans/leases  1.05% 1.00% 1.14% 1.08% 1.29%
    Criticized loans as a % of total loans/leases  2.98% 2.84% 3.16% 2.68% 2.35%
           
           
    (1) Certain loans were identified for securitization and transferred from loans to LHFS. The fair value of the loans was less than its carrying value at the date of transfer, resulting in a charge 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 Nine Months Ended
       September 30, June 30, September 30, September 30, September 30,
     SELECT FINANCIAL DATA - SUBSIDIARIES  2023   2023   2022   2023   2022 
       (dollars in thousands)
                
     TOTAL ASSETS          
     Quad City Bank and Trust (1) $2,433,084  $2,611,832  $2,218,166     
     m2 Equipment Finance, LLC  336,180   322,838   298,640     
     Cedar Rapids Bank and Trust  2,442,263   2,389,623   2,108,614     
     Community State Bank  1,417,250   1,332,966   1,270,426     
     Guaranty Bank  2,242,638   2,179,844   2,107,407     
                
     TOTAL DEPOSITS          
     Quad City Bank and Trust (1) $1,973,989  $2,166,249  $1,741,472     
     Cedar Rapids Bank and Trust  1,722,905   1,791,861   1,627,202     
     Community State Bank  1,132,724   1,073,907   1,036,998     
     Guaranty Bank  1,722,861   1,653,299   1,632,107     
                
     TOTAL LOANS & LEASES          
     Quad City Bank and Trust (1) $2,005,770  $1,925,162  $1,806,776     
     m2 Equipment Finance, LLC  341,041   328,479   300,753     
     Cedar Rapids Bank and Trust  1,750,986   1,728,280   1,579,437     
     Community State Bank  1,098,479   1,025,844   973,083     
     Guaranty Bank  1,751,072   1,700,034   1,649,313     
                
     TOTAL LOANS & LEASES / TOTAL DEPOSITS          
     Quad City Bank and Trust (1)  102%  89%  104%    
     Cedar Rapids Bank and Trust  102%  96%  97%    
     Community State Bank  97%  96%  94%    
     Guaranty Bank  102%  103%  101%    
                
                
     TOTAL LOANS & LEASES / TOTAL ASSETS          
     Quad City Bank and Trust (1)  82%  74%  81%    
     Cedar Rapids Bank and Trust  72%  72%  75%    
     Community State Bank  78%  77%  77%    
     Guaranty Bank  78%  78%  78%    
                
     ACL ON LOANS/LEASES AS A PERCENTAGE OF LOANS/LEASES          
     Quad City Bank and Trust (1)  1.43%  1.44%  1.59%    
     m2 Equipment Finance, LLC  3.52%  3.46%  3.13%    
     Cedar Rapids Bank and Trust  1.40%  1.41%  1.54%    
     Community State Bank  1.22%  1.27%  1.45%    
     Guaranty Bank  1.20%  1.22%  1.42%    
                
     RETURN ON AVERAGE ASSETS           
     Quad City Bank and Trust (1)  0.97%  0.82%  1.41%  1.00%  1.61%
     Cedar Rapids Bank and Trust  2.28%  3.52%  2.83%  2.95%  2.60%
     Community State Bank  1.38%  1.42%  1.31%  1.43%  1.28%
     Guaranty Bank (6)  1.23%  0.97%  1.76%  1.07%  1.06%
                
     NET INTEREST MARGIN PERCENTAGE (2)          
     Quad City Bank and Trust (1)  3.37%  3.28%  3.65%  3.36%  3.63%
     Cedar Rapids Bank and Trust  3.78%  3.69%  4.02%  3.83%  3.77%
     Community State Bank (3)  3.88%  3.90%  3.69%  3.92%  3.66%
     Guaranty Bank (4)  3.06%  3.10%  4.10%  3.22%  4.01%
                
     ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET        
     INTEREST MARGIN, NET          
     Cedar Rapids Bank and Trust $-  $-  $5  $(8) $60 
     Community State Bank  (1)  (1)  62  $69   123 
     Guaranty Bank  572   168   1,047  $1,537   2,814 
     QCR Holdings, Inc. (5)  (32)  (33)  (34) $(97)  (104)
                
    (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 3.88% for the quarter ended September 30, 2023, 3.90% for the quarter ended June 30, 2023 and 3.72% for the quarter ended September 30, 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 2.97% for the quarter ended September 30, 2023, 3.11% for the quarter ended June 30, 2023 and 3.91% for the quarter ended September 30, 2022.    
    (5) Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.  
    (6) Adjusted ROAA excluding non-core adjustments for the Guaranty Bank acquisition (non-GAAP) would have been1.84% for the nine months ended September 30, 2022.
                


    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited)
               
      As of
      September 30, June 30, March 31, December 31, September 30,
    GAAP TO NON-GAAP RECONCILIATIONS  2023   2023   2023   2022   2022 
      (dollars in thousands, except per share data)
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)          
               
    Stockholders' equity (GAAP) $828,383  $822,689  $801,494  $772,724  $737,072 
    Less: Intangible assets  153,564   154,255   154,467   154,366   155,153 
    Tangible common equity (non-GAAP) $674,819  $668,434  $647,027  $618,358  $581,919 
               
    Total assets (GAAP) $8,540,057  $8,226,673  $8,036,904  $7,948,837  $7,730,049 
    Less: Intangible assets  153,564   154,255   154,467   154,366   155,153 
    Tangible assets (non-GAAP) $8,386,493  $8,072,418  $7,882,437  $7,794,471  $7,574,896 
               
    Tangible common equity to tangible assets ratio (non-GAAP) 8.05%  8.28%  8.21%  7.93%  7.68%
               
    (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 Nine Months Ended 
      September 30, June 30, March 31, December 31, September 30, September 30, September 30, 
    ADJUSTED NET INCOME (1)  2023   2023   2023   2022   2022   2023   2022  
      (dollars in thousands, except per share data) 
                    
    Net income (GAAP) $25,121  $28,425  $27,157  $30,906  $29,294  $80,703  $68,160  
                    
    Less non-core items (post-tax) (2):               
    Income:               
    Securities gains (losses), net  -   9   (366)  -   -   (356)  -  
    Fair value gain (loss) on derivatives, net  (265)  66   (337)  (211)  714   (537)  1,771  
    Total non-core income (non-GAAP) $(265) $75  $(703) $(211) $714  $(893) $1,771  
                    
    Expense:               
    Acquisition costs (2)  -   -   -   (517)  321   -   3,715  
    Post-acquisition compensation, transition and integration costs  -   -   164   529   48   164   3,837  
    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  $369  $164  $17,343  
                    
    Adjusted net income (non-GAAP) (1) $ 25,386  $ 28,350  $ 28,024  $ 31,129  $ 28,949  $ 81,760  $ 83,732  
                    
    ADJUSTED EARNINGS PER COMMON SHARE (1)               
                    
    Adjusted net income (non-GAAP) (from above) $25,386  $28,350  $28,024  $31,129  $28,949  $81,760  $83,732  
                    
    Weighted average common shares outstanding  16,717,303   16,701,950   16,776,289   16,855,973   16,900,968   16,731,847   16,030,371  
    Weighted average common and common equivalent shares outstanding  16,847,951   16,799,527   16,942,132   17,047,976   17,110,691   16,863,203   16,243,921  
                    
    Adjusted earnings per common share (non-GAAP):               
    Basic $ 1.52  $ 1.70  $ 1.67  $ 1.85  $ 1.71  $ 4.89  $ 5.22  
    Diluted $ 1.51  $ 1.69  $ 1.65  $ 1.83  $ 1.69  $ 4.85  $ 5.15  
                    
    ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)               
                    
    Adjusted net income (non-GAAP) (from above) $25,386  $28,350  $28,024  $31,129  $28,949  $81,760  $83,732  
                    
    Average Assets $8,287,813  $7,924,597  $7,906,830  $7,800,229  $7,652,463  $8,041,141  $7,005,988  
                    
    Adjusted return on average assets (annualized) (non-GAAP)  1.23%  1.43%  1.42%  1.60%  1.51%  1.36%  1.59% 
    Adjusted return on average equity (annualized) (non-GAAP)  12.12%  13.88%  14.11%  16.44%  15.21%  13.35%  14.99% 
                    
    NET INTEREST MARGIN (TEY) (4)               
                    
    Net interest income (GAAP) $55,255  $53,205  $56,810  $65,218  $60,769  $165,270  $165,902  
    Plus: Tax equivalent adjustment (5)  7,771   6,542   6,057   5,554   4,459   20,283   10,785  
    Net interest income - tax equivalent (Non-GAAP) $63,026  $59,747  $62,867  $70,772  $65,228  $185,553  $176,687  
    Less: Acquisition accounting net accretion  539   134   828   5,688   1,080   1,501   2,893  
    Adjusted net interest income $62,487  $59,613  $62,039  $65,084  $64,148  $184,052  $173,794  
                    
    Average earning assets $7,573,785  $7,283,286  $7,247,605  $7,148,578  $6,975,857  $7,369,420  $6,452,867  
                    
    Net interest margin (GAAP)  2.89%  2.93%  3.18%  3.62%  3.46%  3.00%  3.44% 
    Net interest margin (TEY) (Non-GAAP)  3.31%  3.29%  3.52%  3.93%  3.71%  3.37%  3.66% 
    Adjusted net interest margin (TEY) (Non-GAAP)  3.28%  3.28%  3.47%  3.61%  3.65%  3.34%  3.60% 
                    
    EFFICIENCY RATIO (6)               
                    
    Noninterest expense (GAAP) $51,081  $49,727  $48,785  $49,697  $47,746  $149,593  $140,319  
                    
    Net interest income (GAAP) $55,255  $53,205  $56,810  $65,218  $60,769  $165,270  $165,902  
    Noninterest income (GAAP)  26,593   32,520   25,842   21,219   21,095   84,955   59,510  
    Total income $81,848  $85,725  $82,652  $86,437  $81,864  $250,225  $225,412  
                    
    Efficiency ratio (noninterest expense/total income) (Non-GAAP)  62.41%  58.01%  59.02%  57.50%  58.32%  59.78%  62.25% 
                    
                    
    (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. 

     

     


    Primary Logo

شارك على،