• QCR Holdings, Inc. Announces Net Income of $27.8 Million for the Third Quarter of 2024

    المصدر: Nasdaq GlobeNewswire / 23 أكتوبر 2024 15:05:32   America/Chicago

    Third Quarter 2024 Highlights

    • Net income of $27.8 million, or $1.64 per diluted share
    • Adjusted net income of $30.3 million or $1.78 per diluted share (non-GAAP) resulting in an adjusted ROAA (non-GAAP) of 1.35%
    • Significant increase in net interest income of $3.6 million from the prior quarter, or 6%
    • Net interest margin expanded by 8 basis points to 3.34% adjusted NIM (TEY) (non-GAAP)
    • Continued strong capital markets revenue of $16.3 million
    • Tangible book value (non-GAAP) per share grew $2.35, or 20% annualized
    • TCE/TA ratio (non-GAAP) improved 24 basis points to 9.24%

    MOLINE, Ill., Oct. 23, 2024 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $27.8 million and diluted earnings per share (“EPS”) of $1.64 for the third quarter of 2024, compared to net income of $29.1 million and diluted EPS of $1.72 for the second quarter of 2024.

    Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the third quarter of 2024 were $30.3 million and $1.78, respectively. For the second quarter of 2024, adjusted net income (non-GAAP) was $29.3 million and adjusted diluted EPS (non-GAAP) was $1.73. 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 Quarter Ended 
     September 30,June 30,September 30, 
    $ in millions (except per share data)202420242023 
    Net Income$27.8$29.1$25.1 
    Diluted EPS$1.64$1.72$1.49 
    Adjusted Net Income (non-GAAP)*$30.3$29.3$25.4 
    Adjusted Diluted EPS (non-GAAP)*$1.78$1.73$1.51 
     

    *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 adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.

    “We produced exceptional third quarter results, highlighted by our significant growth in net interest income and margin expansion. We also had another quarter of strong capital markets and wealth management revenue,” said Larry J. Helling, Chief Executive Officer. “In addition, we grew core deposits, maintained our excellent asset quality, and significantly increased our tangible book value per share.”

    Net Interest Income Grew 6% and Net Interest Margin Expanded 8 Basis Points

    Net interest income for the third quarter of 2024 totaled $59.7 million, an increase of $3.6 million from the second quarter of 2024, driven by strong growth in loans and investments combined with margin expansion. Loan yields increased and funding costs were stable. Loan discount accretion was $463 thousand during the third quarter of 2024, an increase of $195 thousand from the prior quarter.

    Net interest margin (“NIM”) was 2.90% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP) was 3.37% for the third quarter, as compared to 2.82% and 3.27% for the prior quarter, respectively. Adjusted NIM TEY (non-GAAP) of 3.34% for the third quarter of 2024, represented an increase of 8 basis points from 3.26% for the second quarter of 2024.  

    “Our adjusted NIM, on a tax equivalent yield basis (non-GAAP), expanded by 8 basis points from the second quarter to 3.34% and exceeded the upper end of our guidance range,” said Todd A. Gipple, President and Chief Financial Officer. “We are very pleased with another quarter of NIM expansion. Looking ahead, we anticipate continued growth in net interest income and are guiding to further fourth quarter adjusted NIM TEY (non-GAAP) expansion in a range of between 2 to 7 basis points.”

    Strong Noninterest Income Including $16.3 Million of Capital Markets Revenue

    Noninterest income for the third quarter of 2024 totaled $27.2 million, a decrease from $30.9 million in the second quarter of 2024. The Company delivered $16.3 million of capital markets revenue in the quarter compared to $17.8 million in the prior quarter. Capital markets revenue was impacted by a $473 thousand loss from the execution of our third securitization during the quarter, a more modest loss than our prior guidance. Wealth management revenue was $4.5 million for the quarter, a 17% annualized increase from the second quarter. Additionally, the Company recorded $2.2 million of income from bank-owned life insurance policy proceeds in the second quarter of 2024 which did not recur during the third quarter of 2024.

    “Our capital markets business delivered strong results driven by the swap fees from our low-income housing tax credit (“LIHTC”) lending program. The demand for affordable housing remains strong, which supports the sustainability of our LIHTC lending program,” added Mr. Gipple. “Our LIHTC lending pipelines, and the associated capital markets revenue remain robust. Additionally, our wealth management business continues to grow from new client additions and increased assets under management as we expand our market share.”

    During the third quarter, the Company executed a derivative strategy with a notional value of $410 million. These derivatives are designed to safeguard the Company’s regulatory capital ratios against the adverse effects of a significant decline in long-term interest rates. These derivatives are unhedged and are marked-to-market, with gains or losses recorded in noninterest income and reflected as a non-core item. For the quarter, the Company recorded a $414 thousand loss on these derivatives.

    Well Controlled Noninterest Expenses of $53.6 Million Impacted by m2 Equipment Finance Decision

    Noninterest expense for the third quarter of 2024 totaled $53.6 million, compared to $49.9 million for the second quarter and $51.1 million for the third quarter of 2023. The linked-quarter increase was primarily due to the previously announced one-time restructuring and goodwill impairment charges related to the decision to discontinue offering new loans and leases at m2 Equipment Finance, LLC (“m2”).  

    “Our core expenses, excluding m2 one-time charges, were $51.2 million, an increase of $1.3 million, and within our guidance range of $49 to $52 million,” said Mr. Gipple. The linked quarter increase in core expenses for the quarter was primarily driven by higher incentive compensation and advertising expenses. Year-to-date core noninterest expenses remain well controlled, having increased only 2% annually. Excluding the one-time charges and other non-core items, the Company’s adjusted efficiency ratio (non-GAAP) was 58.5% in the third quarter.

    Strong Core Deposit Growth

    During the third quarter of 2024, the Company generated strong deposit growth with core deposits increasing by $166.3 million, or 10.3% annualized, to $6.6 billion. “Year-to-date, core deposits have increased by $398.3 million, which is an annualized growth rate of 8.5%. This is a result of our dedication to expanding market share and building new relationships in our markets,” added Mr. Helling.

    Continued Loan Growth

    During the third quarter of 2024, the Company’s total loans and leases held for investment increased by $53.5 million to $6.7 billion. At quarter end, the Company held $165.9 million of LIHTC loans held for sale in anticipation of the Company’s next loan securitization.

    “Our year-to-date total loan growth excluding the impact of the loans securitized during the third quarter, is 10.5% annualized which was just above our guidance range. Year-to-date loan growth, net of loans securitized, was 5.8% annualized”, added Mr. Helling. “With the continued strength of our markets and healthy pipeline, we are maintaining our loan growth target for the full year 2024 of 8% to 10%, prior to the loan securitizations closed in the third quarter and planned for in the fourth quarter.”  

    Asset Quality Remains Excellent

    The Company’s nonperforming assets (“NPAs”) to total assets ratio was 0.39% on September 30, 2024, unchanged from the prior quarter. NPAs totaled $35.7 million at the end of the third quarter of 2024, a $1.2 million increase from the prior quarter.

    The Company’s total criticized loans, a leading indicator of asset quality, declined by $15.3 million on a linked-quarter basis, and the ratio of criticized loans to total loans and leases as of September 30, 2024, improved to 2.20%, as compared to 2.41% as of June 30, 2024. This marks the fourth consecutive quarter of improvement, resulting in a $50 million reduction in total criticized balances.

    The Company recorded a total provision for credit losses of $3.5 million during the quarter, representing a decline of $2.0 million from the prior quarter. The reduction in the provision for credit losses during the quarter was primarily due to overall credit quality improvements. Net charge-offs were $3.4 million during the third quarter of 2024, an increase of $1.8 million from the prior quarter. The increase in net charge offs primarily resulted from loans and leases at m2. The allowance for credit losses to total loans held for investment decreased to 1.30% from 1.33% as of the prior quarter.

    Continued Strong Capital Levels and Outstanding Tangible Book Value Expansion

    As of September 30, 2024, the Company’s tangible common equity to tangible assets ratio (“TCE”) (non-GAAP) increased to 9.24%. The improvement in TCE was driven by strong earnings and an increase in accumulated other comprehensive income (“AOCI”). The total risk-based capital ratio decreased to 13.87% and the common equity tier 1 ratio decreased to 9.79% due to sizable loan and investment growth partially offset by strong earnings. By comparison, these ratios were 9.00%, 14.21%, and 9.92%, respectively, as of June 30, 2024. The Company remains focused on growing its regulatory capital and targeting TCE (non-GAAP) in the top quartile of its peer group.

    The Company’s tangible book value per share (non-GAAP) increased significantly by $2.35, or 20% annualized, during the third quarter of 2024. AOCI increased $12.1 million during the third quarter primarily due to declining interest rates. Tangible book value per share (non-GAAP) has grown by $5.19 year-to-date, for an annualized growth rate of nearly 16%. The combination of strong earnings, a modest dividend, and improved AOCI contributed to the improvement in tangible book value per share (non-GAAP).

    Conference Call Details
    The Company will host an earnings call/webcast tomorrow, October 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 October 31, 2024. The replay access information is 877-344-7529 (international 412-317-0088); access code 4892655. 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 in 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. The Company has 36 locations in Iowa, Missouri, Wisconsin and Illinois. As of September 30, 2024, the Company had $9.1 billion in assets, $6.8 billion in loans and $7.0 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

    Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.  

    A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the ongoing conflict in the Middle East and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (iv) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business, including as a result of the upcoming 2024 presidential election or any changes in response to failures of other banks; (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions and “fintech” companies, and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversity their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, (xix) changes in the interest rates and prepayment rates of the Company’s assets, and (xx) 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 
     September 30,June 30,March 31,December 31,September 30,
     20242024202420232023 
           
     (dollars in thousands) 
           
    CONDENSED BALANCE SHEET      
           
    Cash and due from banks$103,840 $92,173 $80,988 $97,123 $104,265  
    Federal funds sold and interest-bearing deposits 159,159  102,262  77,020  140,369  80,650  
    Securities, net of allowance for credit losses 1,146,046  1,033,199  1,031,861  1,005,528  896,394  
    Loans receivable held for sale (1) 167,047  246,124  275,344  2,594  278,893  
    Loans/leases receivable held for investment 6,661,755  6,608,262  6,372,992  6,540,822  6,327,414  
    Allowance for credit losses (86,321) (87,706) (84,470) (87,200) (87,669) 
    Intangibles 11,751  12,441  13,131  13,821  14,537  
    Goodwill 138,596  139,027  139,027  139,027  139,027  
    Derivatives 261,913  194,354  183,888  188,978  291,295  
    Other assets 524,779  531,855  509,768  497,832  495,251  
    Total assets$ 9,088,565 $ 8,871,991 $ 8,599,549 $ 8,538,894 $ 8,540,057  
           
    Total deposits$6,984,633 $6,764,667 $6,806,775 $6,514,005 $6,494,852  
    Total borrowings 660,344  768,671  489,633  718,295  712,126  
    Derivatives 285,769  221,798  211,677  214,098  320,220  
    Other liabilities 181,199  180,536  184,122  205,900  184,476  
    Total stockholders' equity 976,620  936,319  907,342  886,596  828,383  
    Total liabilities and stockholders' equity$ 9,088,565 $ 8,871,991 $ 8,599,549 $ 8,538,894 $ 8,540,057  
           
    ANALYSIS OF LOAN PORTFOLIO      
    Loan/lease mix: (2)      
    Commercial and industrial - revolving$387,409 $362,115 $326,129 $325,243 $299,588  
    Commercial and industrial - other 1,321,053  1,370,561  1,374,333  1,390,068  1,381,967  
    Commercial and industrial - other - LIHTC 89,028  92,637  96,276  91,710  105,601  
    Total commercial and industrial 1,797,490  1,825,313  1,796,738  1,807,021  1,787,156  
    Commercial real estate, owner occupied 622,072  633,596  621,069  607,365  610,618  
    Commercial real estate, non-owner occupied 1,103,694  1,082,457  1,055,089  1,008,892  955,552  
    Construction and land development 342,335  331,454  410,918  477,424  472,695  
    Construction and land development - LIHTC 913,841  750,894  738,609  943,101  921,359  
    Multi-family 324,090  329,239  296,245  284,721  282,541  
    Multi-family - LIHTC 973,682  1,148,244  1,007,321  711,422  874,439  
    Direct financing leases 19,241  25,808  28,089  31,164  34,401  
    1-4 family real estate 587,512  583,542  563,358  544,971  539,931  
    Consumer 144,845  143,839  130,900  127,335  127,615  
    Total loans/leases$6,828,802 $6,854,386 $6,648,336 $6,543,416 $6,606,307  
    Less allowance for credit losses 86,321  87,706  84,470  87,200  87,669  
    Net loans/leases$ 6,742,481 $ 6,766,680 $ 6,563,866 $ 6,456,216 $ 6,518,638  
           
    ANALYSIS OF SECURITIES PORTFOLIO      
    Securities mix:      
    U.S. government sponsored agency securities$18,621 $20,101 $14,442 $14,973 $16,002  
    Municipal securities 965,810  885,046  884,469  853,645  764,017  
    Residential mortgage-backed and related securities 53,488  54,708  56,071  59,196  57,946  
    Asset backed securities 10,455  12,721  14,285  15,423  16,326  
    Other securities 39,190  38,464  40,539  41,115  43,272  
    Trading securities (3) 58,685  22,362  22,258  22,368  -  
    Total securities$1,146,249 $1,033,402 $1,032,064 $1,006,720 $897,563  
    Less allowance for credit losses 203  203  203  1,192  1,169  
    Net securities$1,146,046 $ 1,033,199 $ 1,031,861 $ 1,005,528 $ 896,394  
           
    ANALYSIS OF DEPOSITS      
    Deposit mix:      
    Noninterest-bearing demand deposits$969,348 $956,445 $955,167 $1,038,689 $1,027,791  
    Interest-bearing demand deposits 4,715,087  4,644,918  4,714,555  4,338,390  4,416,725  
    Time deposits 942,847  859,593  875,491  851,950  788,692  
    Brokered deposits 357,351  303,711  261,562  284,976  261,644  
    Total deposits$ 6,984,633 $ 6,764,667 $ 6,806,775 $ 6,514,005 $ 6,494,852  
           
    ANALYSIS OF BORROWINGS      
    Borrowings mix:      
    Term FHLB advances$145,383 $135,000 $135,000 $135,000 $135,000  
    Overnight FHLB advances 230,000  350,000  70,000  300,000  295,000  
    Other short-term borrowings 2,750  1,600  2,700  1,500  470  
    Subordinated notes 233,383  233,276  233,170  233,064  232,958  
    Junior subordinated debentures 48,828  48,795  48,763  48,731  48,698  
    Total borrowings$ 660,344 $ 768,671 $ 489,633 $ 718,295 $ 712,126  
           
    (1) Loans with a fair value of $165.9 million, $243.2 million, $274.8 million and $278.0 million have been identified for securitization and are included in LHFS at September 30, 2024, June 30, 2024, March 31, 2024 and September 30, 2023, respectively.
    (2) Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.0 billion at September 30, 2024.   
    (3) Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company. 
           


      
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
    		 
      
             
       For the Quarter Ended 
       September 30,June 30,March 31,December 31,September 30, 
       20242024202420232023 
             
       (dollars in thousands, except per share data) 
             
    INCOME STATEMENT       
    Interest income $125,420 $119,746$115,049 $112,248 $108,568  
    Interest expense  65,698  63,583 60,350  56,512  53,313  
    Net interest income  59,722  56,163 54,699  55,736  55,255  
    Provision for credit losses  3,484  5,496 2,969  5,199  3,806  
    Net interest income after provision for credit losses $ 56,238 $ 50,667$ 51,730 $ 50,537 $ 51,449  
             
             
    Trust fees  $3,270 $3,103$3,199 $3,084 $2,863  
    Investment advisory and management fees  1,229  1,214 1,101  1,052  947  
    Deposit service fees  2,294  1,986 2,022  2,008  2,107  
    Gains on sales of residential real estate loans, net  385  540 382  323  476  
    Gains on sales of government guaranteed portions of loans, net  -  12 24  24  -  
    Capital markets revenue  16,290  17,758 16,457  36,956  15,596  
    Earnings on bank-owned life insurance  814  2,964 868  832  1,807  
    Debit card fees  1,575  1,571 1,466  1,561  1,584  
    Correspondent banking fees  507  510 512  465  450  
    Loan related fee income  949  962 836  845  800  
    Fair value gain (loss) on derivatives and trading securities  (886) 51 (163) (582) (336) 
    Other   730  218 154  1,161  299  
    Total noninterest income $ 27,157 $ 30,889$ 26,858 $ 47,729 $ 26,593  
             
             
    Salaries and employee benefits $31,637 $31,079$31,860 $41,059 $32,098  
    Occupancy and equipment expense  6,168  6,377 6,514  6,789  6,228  
    Professional and data processing fees  4,457  4,823 4,613  4,223  4,456  
    Restructuring expense  1,954  - -  -  -  
    FDIC insurance, other insurance and regulatory fees  1,711  1,854 1,945  2,115  1,721  
    Loan/lease expense  587  151 378  834  826  
    Net cost of (income from) and gains/losses on operations of other real estate  (42) 28 (30) 38  3  
    Advertising and marketing  2,124  1,565 1,483  1,641  1,429  
    Communication and data connectivity  333  318 401  449  478  
    Supplies   278  259 275  333  335  
    Bank service charges  603  622 568  761  605  
    Correspondent banking expense  325  363 305  300  232  
    Intangibles amortization  690  690 690  716  691  
    Goodwill impairment  432  - -  -  -  
    Payment card processing  785  706 646  836  733  
    Trust expense  395  379 425  413  432  
    Other   1,128  674 617  431  814  
    Total noninterest expense $ 53,565 $ 49,888$ 50,690 $ 60,938 $ 51,081  
             
    Net income before income taxes $ 29,830 $ 31,668$ 27,898 $ 37,328 $ 26,961  
    Federal and state income tax expense  2,045  2,554 1,172  4,473  1,840  
    Net income  $ 27,785 $ 29,114$ 26,726 $ 32,855 $ 25,121  
             
    Basic EPS $1.65 $1.73$1.59 $1.96 $1.50  
    Diluted EPS $1.64 $1.72$1.58 $1.95 $1.49  
             
             
    Weighted average common shares outstanding  16,846,200  16,814,814 16,783,348  16,734,080  16,717,303  
    Weighted average common and common equivalent shares outstanding  16,982,400  16,921,854 16,910,675  16,875,952  16,847,951  
             


      
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
    		 
      
           
       For the Nine Months Ended 
       September 30,  September 30,  
       2024 2023 
           
       (dollars in thousands, except per share data) 
           
    INCOME STATEMENT     
    Interest income $360,215  $301,162  
    Interest expense  189,631   135,892  
    Net interest income  170,584   165,270  
    Provision for credit losses  11,949   11,340  
    Net interest income after provision for credit losses $ 158,635  $ 153,930  
           
           
    Trust fees  $9,572  $8,613  
    Investment advisory and management fees  3,544   2,812  
    Deposit service fees  6,302   6,169  
    Gains on sales of residential real estate loans, net  1,307   1,288  
    Gains on sales of government guaranteed portions of loans, net  36   30  
    Capital markets revenue  50,505   55,109  
    Securities losses, net  -   (451) 
    Earnings on bank-owned life insurance  4,646   3,352  
    Debit card fees  4,612   4,639  
    Correspondent banking fees  1,529   1,197  
    Loan related fee income  2,747   2,221  
    Fair value loss on derivatives and trading securities  (998)  (680) 
    Other   1,102   656  
    Total noninterest income $ 84,904  $ 84,955  
           
           
    Salaries and employee benefits $94,576  $95,560  
    Occupancy and equipment expense  19,059   18,242  
    Professional and data processing fees  13,893   12,048  
    Post-acquisition compensation, transition and integration costs  -   207  
    Restructuring expense  1,954   -  
    FDIC insurance, other insurance and regulatory fees  5,510   5,022  
    Loan/lease expense  1,116   2,034  
    Net cost of (income from) and gains/losses on operations of other real estate   (44)  (64) 
    Advertising and marketing  5,172   4,401  
    Communication and data connectivity  1,052   1,614  
    Supplies   812   921  
    Bank service charges  1,793   1,831  
    Correspondent banking expense  993   663  
    Intangibles amortization  2,070   2,222  
    Goodwill impairment  432   -  
    Payment card processing  2,137   1,820  
    Trust expense  1,199   983  
    Other   2,419   2,089  
    Total noninterest expense $ 154,143  $ 149,593  
           
    Net income before income taxes $ 89,396  $ 89,292  
    Federal and state income tax expense  5,771   8,589  
    Net income  $ 83,625  $ 80,703  
           
    Basic EPS $4.97  $4.82  
    Diluted EPS $4.94  $4.79  
           
           
    Weighted average common shares outstanding  16,814,787   16,731,847  
    Weighted average common and common equivalent shares outstanding 16,938,309   16,863,203  
           


      
    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, 
     20242024202420232023 20242023 
              
     (dollars in thousands, except per share data) 
              
    COMMON SHARE DATA         
    Common shares outstanding 16,861,108  16,824,985  16,807,056  16,749,254  16,731,646     
    Book value per common share (1)$57.92 $55.65 $53.99 $52.93 $49.51     
    Tangible book value per common share (Non-GAAP) (2)$49.00 $46.65 $44.93 $43.81 $40.33     
    Closing stock price$74.03 $60.00 $60.74 $58.39 $48.52     
    Market capitalization$1,248,228 $1,009,499 $1,020,861 $977,989 $811,819     
    Market price / book value 127.81% 107.82% 112.51% 100.31% 98.00%    
    Market price / tangible book value 151.07% 128.62% 135.18% 133.29% 120.30%    
    Earnings per common share (basic) LTM (3)$6.93 $6.78 $6.75 $6.78 $6.65     
    Price earnings ratio LTM (3)10.68 x8.85 x9.00 x8.61 x7.30 x    
    TCE / TA (Non-GAAP) (4) 9.24% 9.00% 8.94% 8.75% 8.05%    
              
              
    CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY     
    Beginning balance$936,319 $907,342 $886,596 $828,383 $822,689     
    Net income 27,785  29,114  26,726  32,855  25,121     
    Other comprehensive income (loss), net of tax 12,057  (368) (5,373) 25,363  (19,415)    
    Common stock cash dividends declared (1,012) (1,008) (1,008) (1,004) (1,003)    
    Other (5) 1,471  1,239  401  999  991     
    Ending balance$ 976,620 $ 936,319 $ 907,342 $ 886,596 $ 828,383     
              
              
    REGULATORY CAPITAL RATIOS (6):         
    Total risk-based capital ratio 13.87% 14.21% 14.30% 14.29% 14.48%    
    Tier 1 risk-based capital ratio 10.33% 10.49% 10.50% 10.27% 10.30%    
    Tier 1 leverage capital ratio 10.50% 10.40% 10.33% 10.03% 9.92%    
    Common equity tier 1 ratio 9.79% 9.92% 9.91% 9.67% 9.68%    
              
              
    KEY PERFORMANCE RATIOS AND OTHER METRICS          
    Return on average assets (annualized) 1.24% 1.33% 1.25% 1.54% 1.21%  1.27% 1.34% 
    Return on average total equity (annualized) 11.55% 12.63% 11.83% 15.42% 11.99%  12.00% 13.18% 
    Net interest margin 2.90% 2.82% 2.82% 2.90% 2.89%  2.85% 3.00% 
    Net interest margin (TEY) (Non-GAAP)(7) 3.37% 3.27% 3.25% 3.32% 3.31%  3.30% 3.37% 
    Efficiency ratio (Non-GAAP) (8) 61.65% 57.31% 62.15% 58.90% 62.41%  60.33% 59.78% 
    Gross loans/leases held for investment / total assets 73.30% 74.48% 74.11% 76.60% 74.09%  73.30% 77.36% 
    Gross loans/leases held for investment / total deposits 95.38% 97.69% 93.63% 100.41% 97.42%  95.38% 101.72% 
    Effective tax rate 6.86% 8.06% 4.20% 11.98% 6.82%  6.46% 9.62% 
    Full-time equivalent employees 976  988  986  996  987   976  987  
              
              
    AVERAGE BALANCES          
    Assets$8,968,653 $8,776,002 $8,550,855 $8,535,732 $8,287,813  $8,765,913 $8,041,141  
    Loans/leases 6,840,527  6,779,075  6,598,614  6,483,572  6,476,512   6,739,773  6,288,343  
    Deposits 6,858,196  6,687,188  6,595,453  6,485,154  6,342,339   6,714,251  6,272,083  
    Total stockholders' equity 962,302  921,986  903,371  852,163  837,734   929,341  816,591  
              
              
              
    (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.         
              


      
    QCR Holding, Inc.
    Consolidated Financial Highlights
    (Unaudited) 
    		 
      
                  
                  
    ANALYSIS OF NET INTEREST INCOME AND MARGIN             
                  
      For the Quarter Ended 
      September 30, 2024 June 30, 2024 September 30, 2023 
      Average
    Balance    		Interest
    Earned or
    Paid    		Average
    Yield or Cost    		 Average
    Balance    		Interest
    Earned or
    Paid    		Average
    Yield or Cost    		 Average
    Balance    		Interest
    Earned or
    Paid    		Average
    Yield or Cost    		 
                  
      (dollars in thousands) 
                  
    Fed funds sold $12,596$1735.37% $13,065$1835.54% $21,526$2845.23% 
    Interest-bearing deposits at financial institutions 145,597 1,9155.23%  80,998 1,1395.66%  86,807 1,2055.51% 
    Investment securities - taxable 381,285 4,4394.64%  377,747 4,2864.53%  344,657 3,7884.38% 
    Investment securities - nontaxable (1) 760,645 10,7445.65%  704,761 9,4625.37%  600,693 6,9744.64% 
    Restricted investment securities 42,546 8407.73%  43,398 8697.92%  43,590 6595.91% 
    Loans (1)  6,840,527 116,8546.80%  6,779,075 112,7196.69%  6,476,512 103,4286.34% 
    Total earning assets (1)$8,183,196$134,9656.56% $7,999,044$128,6586.46% $7,573,785$116,3386.10% 
                  
    Interest-bearing deposits$4,739,757$42,1803.54% $4,649,625$40,9243.54% $4,264,208$33,5633.12% 
    Time deposits  1,164,560 13,2064.51%  1,091,870 12,1284.47%  999,488 10,0033.97% 
    Short-term borrowings 2,485 325.07%  1,622 215.18%  1,514 205.28% 
    Federal Home Loan Bank advances 445,632 5,9725.24%  464,231 6,2385.32%  425,870 5,7245.26% 
    Subordinated debentures 233,313 3,6166.20%  233,207 3,5826.14%  232,890 3,3075.68% 
    Junior subordinated debentures 48,806 6935.56%  48,774 6885.58%  48,678 6955.59% 
    Total interest-bearing liabilities$6,634,553$65,6993.93% $6,489,329$63,5813.93% $5,972,648$53,3123.54% 
                  
    Net interest income (1) $69,266   $65,077   $63,026  
    Net interest margin (2)  2.90%   2.82%   2.89% 
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.37%   3.27%   3.31% 
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.34%   3.26%   3.28% 
                  
                  
      For the Nine Months Ended     
      September 30, 2024 September 30, 2023   
      Average BalanceInterest Earned or PaidAverage Yield or Cost Average BalanceInterest Earned or PaidAverage Yield or Cost     
                  
      (dollars in thousands)     
                  
    Fed funds sold $15,196$6255.40% $19,267$7415.14%     
    Interest-bearing deposits at financial institutions 106,195 4,2545.35%  83,783 3,1515.03%     
    Investment securities - taxable 377,538 12,9864.57%  340,140 10,8474.24%     
    Investment securities - nontaxable (1) 717,284 29,5575.50%  599,070 19,8924.43%     
    Restricted investment securities 41,348 2,3837.57%  38,817 1,6775.70%     
    Loans (1)  6,739,773 337,2446.68%  6,288,343 285,1366.06%     
    Total earning assets (1)$7,997,334$387,0496.46% $7,369,420$321,4445.83%     
                  
    Interest-bearing deposits$4,639,937$122,2073.52% $4,099,789$84,5652.76%     
    Time deposits  1,121,508 37,6794.49%  1,020,421 27,2253.57%     
    Short-term borrowings 1,846 765.47%  3,588 1525.66%     
    Federal Home Loan Bank advances 421,782 16,9485.28%  311,740 11,8985.03%     
    Subordinated debentures 233,207 10,6786.10%  232,784 9,9225.68%     
    Junior subordinated debentures 48,774 2,0745.59%  48,646 2,1295.77%     
    Total interest-bearing liabilities$6,467,054$189,6623.91% $5,716,968$135,8913.17%     
                  
    Net interest income (1) $197,387   $185,553      
    Net interest margin (2)  2.85%   3.00%     
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.30%   3.37%     
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.28%   3.34%     
                  
                  
    (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% effective federal 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,
     20242024202420232023 
           
     (dollars in thousands, except per share data) 
           
    ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES      
    Beginning balance$87,706 $84,470 $87,200 $87,669 $85,797  
    Change in ACL for transfer of loans to LHFS (1,812) 498  (3,377) 266  175  
    Credit loss expense 3,828  4,343  3,736  2,519  3,260  
    Loans/leases charged off (3,871) (1,751) (3,560) (3,354) (1,816) 
    Recoveries on loans/leases previously charged off 470  146  471  100  253  
    Ending balance$ 86,321 $ 87,706 $ 84,470 $ 87,200 $ 87,669  
           
           
    NONPERFORMING ASSETS       
    Nonaccrual loans/leases$33,480 $33,546 $29,439 $32,753 $34,568  
    Accruing loans/leases past due 90 days or more 1,298  87  142  86  -  
    Total nonperforming loans/leases 34,778  33,633  29,581  32,839  34,568  
    Other real estate owned 369  369  784  1,347  120  
    Other repossessed assets 542  512  962  -  -  
    Total nonperforming assets$ 35,689 $ 34,514 $ 31,327 $ 34,186 $ 34,688  
           
           
    ASSET QUALITY RATIOS      
    Nonperforming assets / total assets 0.39% 0.39% 0.36% 0.40% 0.41% 
    ACL for loans and leases / total loans/leases held for investment 1.30% 1.33% 1.33% 1.33% 1.39% 
    ACL for loans and leases / nonperforming loans/leases 248.21% 260.77% 285.55% 265.54% 253.61% 
    Net charge-offs as a % of average loans/leases 0.05% 0.02% 0.05% 0.05% 0.02% 
           
           
           
    INTERNALLY ASSIGNED RISK RATING (1) (2)      
    Special mention$80,121 $85,096 $111,729 $125,308 $128,052  
    Substandard (3) 70,022  80,345  70,841  70,425  72,550  
    Doubtful (3) -  -  -  -  -  
        Total Criticized loans (4)$150,143 $165,441 $182,570 $195,733 $200,602  
           
    Classified loans as a % of total loans/leases (3) 1.03% 1.17% 1.07% 1.08% 1.10% 
    Total Criticized loans as a % of total loans/leases (4) 2.20% 2.41% 2.75% 2.99% 3.04% 
           
           
           
           
    (1) During the first quarter of 2024, the Company revised the risk rating scale used for credit quality monitoring. 
    (2) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass for the government guaranteed portion. 
    (3) Classified loans are defined as loans with internally assigned risk ratings of 10 or 11 (7 or 8 prior to January 1, 2024), regardless of performance, and include loans identified as Substandard or Doubtful. 
    (4) Total Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11 (6, 7, or 8 prior to January 1, 2024), regardless of performance, and include loans identified as Special Mention, Substandard, or Doubtful. 
           


      
    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 2024 2024 2023 2024 2023 
       (dollars in thousands) 
                 
     TOTAL ASSETS           
     Quad City Bank and Trust (1) $2,552,962  $2,559,049  $2,433,084      
     m2 Equipment Finance, LLC  349,166   359,012   336,180      
     Cedar Rapids Bank and Trust  2,625,943   2,428,267   2,442,263      
     Community State Bank  1,519,585   1,531,109   1,417,250      
     Guaranty Bank  2,360,301   2,369,754   2,242,638      
                 
     TOTAL DEPOSITS           
     Quad City Bank and Trust (1) $2,205,465  $2,100,520  $1,973,989      
     Cedar Rapids Bank and Trust  1,765,964   1,721,564   1,722,905      
     Community State Bank  1,269,147   1,188,551   1,132,724      
     Guaranty Bank  1,778,453   1,791,448   1,722,861      
                 
     TOTAL LOANS & LEASES           
     Quad City Bank and Trust (1) $2,090,856  $2,107,605  $2,005,770      
     m2 Equipment Finance, LLC  353,259   363,897   341,041      
     Cedar Rapids Bank and Trust  1,743,809   1,736,438   1,750,986      
     Community State Bank  1,161,805   1,162,686   1,098,479      
     Guaranty Bank  1,832,331   1,847,658   1,751,072      
                 
     TOTAL LOANS & LEASES / TOTAL DEPOSITS           
     Quad City Bank and Trust (1)  95%  100%  102%     
     Cedar Rapids Bank and Trust  99%  101%  102%     
     Community State Bank  92%  98%  97%     
     Guaranty Bank  103%  103%  102%     
                 
                 
     TOTAL LOANS & LEASES / TOTAL ASSETS           
     Quad City Bank and Trust (1)  82%  82%  82%     
     Cedar Rapids Bank and Trust  66%  72%  72%     
     Community State Bank  76%  76%  78%     
     Guaranty Bank  78%  78%  78%     
                 
     ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT           
     Quad City Bank and Trust (1)  1.49%  1.49%  1.50%     
     m2 Equipment Finance, LLC  4.11%  3.86%  3.52%     
     Cedar Rapids Bank and Trust  1.38%  1.44%  1.47%     
     Community State Bank  1.06%  1.14%  1.28%     
     Guaranty Bank  1.14%  1.16%  1.24%     
                 
     RETURN ON AVERAGE ASSETS            
     Quad City Bank and Trust (1)  0.76%  0.88%  0.97%  0.81%  1.00% 
     Cedar Rapids Bank and Trust  2.52%  2.94%  2.28%  2.84%  2.95% 
     Community State Bank  1.46%  1.26%  1.38%  1.33%  1.43% 
     Guaranty Bank  1.28%  1.42%  1.23%  1.20%  1.07% 
                 
     NET INTEREST MARGIN PERCENTAGE (2)           
     Quad City Bank and Trust (1)  3.50%  3.39%  3.37%  3.40%  3.36% 
     Cedar Rapids Bank and Trust  3.88%  3.75%  3.78%  3.80%  3.83% 
     Community State Bank  3.76%  3.72%  3.88%  3.74%  3.92% 
     Guaranty Bank (3)  3.12%  2.99%  3.06%  3.03%  3.22% 
                 
     ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET         
     INTEREST MARGIN, NET           
     Cedar Rapids Bank and Trust $-  $-  $-  $-  $(8) 
     Community State Bank  (1)  (1)  (1)  (3)  69  
     Guaranty Bank  496   301   572   1,194   1,537  
     QCR Holdings, Inc. (4)  (32)  (32)  (32)  (97)  (97) 
                 
    (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% effective federal tax rate.   
    (3)Guaranty Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.94% for the quarter ended September 30, 2024, 2.86% for the quarter ended June 30, 2024 and 2.97% for the quarter ended September 30, 2023.     
    (4)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
      September 30, June 30,  March 31,  December 31, September 30, 
    GAAP TO NON-GAAP RECONCILIATIONS 2024 2024 2024 2023 2023 
      (dollars in thousands, except per share data)
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)           
                
    Stockholders' equity (GAAP) $976,620  $936,319  $907,342  $886,596  $828,383  
    Less: Intangible assets  150,347   151,468   152,158   152,848   153,564  
    Tangible common equity (non-GAAP) $826,273  $784,851  $755,184  $733,748  $674,819  
                
    Total assets (GAAP) $9,088,565  $8,871,991  $8,599,549  $8,538,894  $8,540,057  
    Less: Intangible assets  150,347   151,468   152,158   152,848   153,564  
    Tangible assets (non-GAAP) $8,938,218  $8,720,523  $8,447,391  $8,386,046  $8,386,493  
                
    Tangible common equity to tangible assets ratio (non-GAAP) 9.24%  9.00%  8.94%  8.75%  8.05% 
                
                
                
    (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) 2024 2024 2024 2023 2023 2024 2023 
      (dollars in thousands, except per share data) 
                    
    Net income (GAAP) $27,785  $29,114  $26,726  $32,855  $25,121  $83,625  $80,703  
                    
    Less non-core items (post-tax) (2):               
    Income:               
    Securities gains (losses), net  -   -   -   -   -   -   (356) 
    Fair value gain (loss) on derivatives, net  (542)  (145)  (144)  (460)  (265)  (830)  (537) 
    Total non-core income (non-GAAP) $(542) $(145) $(144) $(460) $(265) $(830) $(893) 
                    
    Expense:               
    Goodwill impairment  432   -   -   -   -   432   -  
    Post-acquisition compensation, transition and integration costs  -   -   -   -   -   -   164  
    Restructuring expense  1,544   -   -   -   -   1,544    
    Total non-core expense (non-GAAP) $1,976  $-  $-  $-  $-  $1,976  $164  
                    
    Adjusted net income (non-GAAP) (1) $ 30,303  $ 29,259  $ 26,870  $ 33,315  $ 25,386  $ 86,431  $ 81,760  
                    
    ADJUSTED EARNINGS PER COMMON SHARE (1)               
                    
    Adjusted net income (non-GAAP) (from above) $30,303  $29,259  $26,870  $33,315  $25,386  $86,431  $81,760  
                    
    Weighted average common shares outstanding  16,846,200   16,814,814   16,783,348   16,734,080   16,717,303   16,814,787   16,731,847  
    Weighted average common and common equivalent shares outstanding  16,982,400   16,921,854   16,910,675   16,875,952   16,847,951   16,938,309   16,863,203  
                    
    Adjusted earnings per common share (non-GAAP):               
    Basic $ 1.80  $ 1.74  $ 1.60  $ 1.99  $ 1.52  $ 5.14  $ 4.89  
    Diluted $ 1.78  $ 1.73  $ 1.59  $ 1.97  $ 1.51  $ 5.10  $ 4.85  
                    
    ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)               
                    
    Adjusted net income (non-GAAP) (from above) $30,303  $29,259  $26,870  $33,315  $25,386  $86,431  $81,760  
                    
    Average Assets $8,968,653  $8,776,002  $8,550,855  $8,535,732  $8,287,813  $8,765,913  $8,041,141  
                    
    Adjusted return on average assets (annualized) (non-GAAP)  1.35%  1.33%  1.26%  1.56%  1.23%  1.31%  1.36% 
    Adjusted return on average equity (annualized) (non-GAAP)  12.60%  12.69%  11.90%  15.64%  12.12%  12.40%  13.35% 
                    
    NET INTEREST MARGIN (TEY) (3)               
                    
    Net interest income (GAAP) $59,722  $56,163  $54,699  $55,736  $55,255  $170,584  $165,270  
    Plus: Tax equivalent adjustment (4)  9,544   8,914   8,377   7,954   7,771   26,803   20,283  
    Net interest income - tax equivalent (Non-GAAP) $69,266  $65,077  $63,076  $63,690  $63,026  $197,387  $185,553  
    Less: Acquisition accounting net accretion  463   268   363   673   539   1,094   1,501  
    Adjusted net interest income $68,803  $64,809  $62,713  $63,017  $62,487  $196,293  $184,052  
                    
    Average earning assets $8,183,196  $7,999,044  $7,807,720  $7,631,035  $7,573,785  $7,997,334  $7,369,420  
                    
    Net interest margin (GAAP)  2.90%  2.82%  2.82%  2.90%  2.89%  2.85%  3.00% 
    Net interest margin (TEY) (Non-GAAP)  3.37%  3.27%  3.25%  3.32%  3.31%  3.30%  3.37% 
    Adjusted net interest margin (TEY) (Non-GAAP)  3.34%  3.26%  3.24%  3.29%  3.28%  3.28%  3.34% 
                    
    EFFICIENCY RATIO (5)               
                    
    Noninterest expense (GAAP) $53,565  $49,888  $50,690  $60,938  $51,081  $154,143  $149,593  
                    
    Net interest income (GAAP) $59,722  $56,163  $54,699  $55,736  $55,255  $170,584  $165,270  
    Noninterest income (GAAP)  27,157   30,889   26,858   47,729   26,593   84,904   84,955  
    Total income $86,879  $87,052  $81,557  $103,465  $81,848  $255,488  $250,225  
                    
    Efficiency ratio (noninterest expense/total income) (Non-GAAP)  61.65%  57.31%  62.15%  58.90%  62.41%  60.33%  59.78% 
    Adjusted efficiency ratio (core noninterest expense/core total income) (Non-GAAP)  58.45%  57.19%  62.01%  58.57%  62.15%  59.16%  59.43% 
                    
                    
                    
                    
    (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 non-recurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.   
    (3) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.       
    (4) 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.         
    (5) 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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