• QCR Holdings, Inc. Announces Third Quarter 2022 Results

    المصدر: Nasdaq GlobeNewswire / 26 أكتوبر 2022 16:05:02   America/New_York

    Third Quarter 2022 Highlights

    • Net income of $29.3 million, or $1.71 per diluted share
    • Adjusted net income (non-GAAP) of $28.9 million, or $1.69 per diluted share
    • Net Interest Margin (“NIM”) of 3.46% and NIM (TEY)(non-GAAP) of 3.71%
    • Annualized loan and lease growth of 14.5% for the quarter
    • Annualized deposit growth of 8.3% for the quarter
    • Nonperforming assets improved for the quarter and represented 0.23% of total assets
    • Allowance for credit losses (“ACL”) to total loans/leases of 1.51%
    • Increased total risk-based capital to 14.55% through the issuance of subordinated notes and strong earnings

    MOLINE, Ill., Oct. 26, 2022 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced net income of $29.3 million and diluted earnings per share (“EPS”) of $1.71 for the third quarter of 2022, compared to net income of $15.2 million and diluted EPS of $0.87 for the second quarter of 2022.

    Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the third quarter of 2022 were $28.9 million and $1.69, respectively. For the second quarter of 2022, adjusted net income (non-GAAP) was $30.4 million and adjusted diluted EPS (non-GAAP) was $1.73. For the third quarter of 2021, adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $31.6 million and $1.99, respectively.

     For the Quarter Ended
     September 30,
    		 June 30,
    		 September 30,
    $ in millions (except per share data)2022
    		 2022
    		 2021
    Net Income$29.3  $15.2  $31.6 
    Diluted EPS$1.71  $0.87  $1.99 
    Adjusted Net Income (non-GAAP)*$28.9  $30.4  $31.6 
    Adjusted Diluted EPS (non-GAAP)*$1.69  $1.73  $1.99 

    *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 another strong quarter of net income, driven by exceptional loan growth, improved credit quality and carefully managed expenses,” said Larry J. Helling, Chief Executive Officer. “Building on the momentum we established in the first half of the year, we generated robust lending activity again in the third quarter with annualized loan growth of 14.5%. This was funded primarily by growth in deposits during the quarter. Additionally, we raised $100 million of subordinated debt, bolstering our capital position against the backdrop of an uncertain economy.”

    Net Interest Income of $60.8 Million

    Net interest income for the third quarter of 2022 totaled $60.8 million, compared to $59.4 million for the second quarter of 2022 and $46.2 million for the third quarter of 2021. The increase in net interest income was due to an increase in average earning assets, primarily attributable to loan growth and NIM expansion on a linked-quarter basis. Adjusted net interest income, excluding PPP income (non-GAAP) during the quarter was $64.1 million, an increase of $3.2 million, or 20.8% annualized, from the prior quarter. Acquisition-related net accretion totaled $1.1 million for the third quarter of 2022, as compared to $1.7 million in the second quarter of 2022.

    In the third quarter of 2022, NIM was 3.46% and tax-equivalent yield (“TEY”) basis (non-GAAP) NIM was 3.71%, compared to 3.53% and 3.74% in the prior quarter, respectively. Adjusted NIM (non-GAAP), which excludes acquisition-related net accretion, was 3.65%, up 1 basis point from the prior quarter. Excluding the final impact of PPP loans (non-GAAP) on NIM in the prior quarter, adjusted NIM for the current quarter (non-GAAP) was up 5 basis points prior to the dilutive impact of our subordinated debt issuance. The linked-quarter increase was primarily due to the impact of multiple interest rate hikes on our asset-sensitive balance sheet, partially offset by the impact of increased deposit costs and our recent subordinated debt issuance.

     For the Quarter Ended
     September 30, June 30, September 30,
     2022 2022 2021
    NIM3.46% 3.53% 3.36%
    NIM (TEY)(non-GAAP) *3.71% 3.74% 3.56%
    Adjusted NIM (TEY)(non-GAAP) *3.65% 3.64% 3.53%
    Adjusted NIM ex. PPP (TEY)(non-GAAP)*3.65% 3.63% 3.39%
    * See GAAP to non-GAAP reconciliations
    		     

    “Our adjusted NIM, excluding PPP, expanded by 5 basis points during the third quarter, prior to the dilutive impact of our recent subordinated debt issuance,” said Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer. “While our balance sheet is well positioned to continue to drive NIM expansion in this rising rate environment, the sharply higher interest rates impacted our deposit mix and pricing this quarter. However, we are very pleased with the expansion in NIM that we have experienced early in the current rising rate cycle of 26 basis points on a year-over-year basis.”

    Annualized Loan and Lease Growth of 14.5%
    Total Loans and Leases Surpass $6 Billion

    During the third quarter of 2022, the Company’s loans and leases increased $210.7 million to a total of $6.0 billion, or 14.5% on an annualized basis.   Deposits increased by $120.4 million during the quarter, helping to fund our loan and lease growth.  

    “Strength in our traditional commercial lending, leasing and our Specialty Finance businesses drove our continued loan growth,” added Mr. Helling. “This speaks to the dedication of our experienced teams and the economic resiliency in our markets. Given our current pipelines, we are reaffirming our targeted loan growth of between 10% and 12% for the fourth quarter, while continuing to be vigilant on maintaining our exceptional credit quality.”

    Noninterest Income of $21.1 Million

    Noninterest income for the third quarter of 2022 totaled $21.1 million, compared to $22.8 million for the second quarter of 2022. The decrease was primarily due to a $2.5 million decline in capital markets revenue from swap fees due to delays in client projects caused by ongoing supply chain disruptions, inflationary pressures and higher interest rates. Wealth management revenue was $3.5 million for the quarter, consistent with the second quarter of 2022, despite ongoing market volatility.

    “Capital markets revenue totaled $10.5 million for the quarter, which was below our guidance due to delays in funding low-income housing tax credit projects,” added Mr. Gipple. “While certain client projects have been delayed, the economics of these projects remain solid, and our pipeline is strong. Capital markets revenue has averaged approximately $11 million per quarter for the last four quarters and therefore we expect this source of fee income to be in a range of $10 to $12 million for the fourth quarter.”

    Noninterest Expenses of $47.7 Million

    Noninterest expense for the third quarter of 2022 totaled $47.7 million, compared to $54.2 million for the second quarter of 2022 and $41.4 million for the third quarter of 2021. The linked-quarter decrease was primarily due to elevated expenses in the second quarter related to the Guaranty Bank acquisition and lower incentive-based compensation in the third quarter. Excluding acquisition/post-acquisition related costs, noninterest expense for the third quarter was $47.4 million, compared to $47.5 million in the second quarter.

    Asset Quality Remains Exceptional

    Nonperforming assets (“NPAs”) totaled $18.0 million at the end of the third quarter, a decrease of $6.0 million from the second quarter of 2022. The reduction in NPAs during the quarter was primarily the result of paydowns on several NPAs. The ratio of NPAs to total assets was 0.23% on September 30, 2022, compared to 0.33% on June 30, 2022, and 0.11% on September 30, 2021. In addition, the Company’s criticized loans and classified loans to total loans and leases on September 30, 2022 improved to 2.35% and 1.29%, respectively, as compared to 2.37% and 1.43% as of June 30, 2022.

    The Company did not record a provision for credit losses in the third quarter of 2022 as a result of continued improvements in overall credit quality. As of September 30, 2022, the ACL on total loans/leases was 1.51%, compared to 1.59% as of June 30, 2022.

    Continued Strong Capital Levels

    As of September 30, 2022, the Company’s total risk-based capital ratio was 14.55%, the common equity tier 1 ratio was 9.33% and the tangible common equity to tangible assets ratio (non-GAAP) was 7.68%. By comparison, these respective ratios were 13.40%, 9.46% and 8.11% as of June 30, 2022.

    On August 18, 2022, the Company announced that it completed a private placement of $100 million in aggregate principal amount subordinated notes. The notes qualify as tier 2 capital and contributed to the increase in the total risk-based capital ratio. This transaction increased our total risk-based capital ratio by 140 bps.

    During the third quarter, the Company purchased and retired 190,000 shares of its common stock at an average price of $55.18 per share as the Company executed purchases under the share repurchase plan announced during the second quarter. The 2022 share repurchase plan authorized an approximate 1,500,000 additional shares to be repurchased and the Company has approximately 1,030,000 shares remaining under the program.

    The Company’s accumulated other comprehensive income (“AOCI”) declined $24.8 million during the third quarter due to a decrease in the value of its available for sale securities portfolio and certain derivatives resulting from continued sharp increases in interest rates during the quarter. While AOCI and the repurchase of shares reduced the Company’s tangible common equity, solid earnings offset this impact, which led to a slight increase in tangible book value per share (non-GAAP).

    Focus on Three Strategic Long-Term Initiatives

    As part of the Company’s ongoing efforts to grow earnings and drive attractive long-term returns for shareholders, it continues to operate under three key strategic long-term initiatives:

    • Generate organic loan and lease growth of 9% per year, funded by core deposits;
    • Grow fee-based income by at least 6% per year; and
    • Limit annual operating expense growth to 5% per year.

    Conference Call Details

    The Company will host an earnings call/webcast tomorrow, October 27, 2022, 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 3, 2022. The replay access information is 877-344-7529 (international 412-317-0088); access code 9369877. 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 Milwaukee, Wisconsin, and also provides correspondent banking services. The Company has 40 locations in Iowa, Missouri, Wisconsin and Illinois. As of September 30, 2022, the Company had approximately $7.7 billion in assets, $6.0 billion in loans and $5.9 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,” “predict,” “suggest,” “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should” 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, 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; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of LIBOR phase-out); (vi) increased competition in the financial services sector 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; and (xiii) 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.

    Contacts:
    Todd A. Gipple
    President
    Chief Operating Officer
    Chief Financial Officer
    (309) 743-7745
    tgipple@qcrh.com

          
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
          
     As of
     September 30,June 30,March 31,December 31,September 30,
     20222022202220212021
     (dollars in thousands)
          
    CONDENSED BALANCE SHEET     
          
    Cash and due from banks$86,282 $92,379 $50,540 $37,490 $57,310 
    Federal funds sold and interest-bearing deposits 71,043  56,532  66,390  87,662  70,826 
    Securities, net of allowance for credit losses 879,450  879,918  823,311  810,215  828,719 
    Net loans/leases 5,918,121  5,705,478  4,753,082  4,601,411  4,519,060 
    Intangibles 17,546  18,333  8,856  9,349  9,857 
    Goodwill 137,607  137,607  74,066  74,066  74,066 
    Derivatives 185,037  97,455  107,326  222,220  198,393 
    Other assets 434,963  405,239  292,248  253,719  256,277 
    Total assets$7,730,049 $7,392,941 $6,175,819 $6,096,132 $6,014,508 
          
    Total deposits$5,941,035 $5,820,657 $4,839,689 $4,922,772 $4,871,828 
    Total borrowings 701,491  583,166  443,270  170,805  183,514 
    Derivatives 209,479  113,305  116,193  225,135  201,450 
    Other liabilities 140,972  132,675  108,743  100,410  107,902 
    Total stockholders' equity 737,072  743,138  667,924  677,010  649,814 
    Total liabilities and stockholders' equity$7,730,049 $7,392,941 $6,175,819 $6,096,132 $6,014,508 
          
    ANALYSIS OF LOAN PORTFOLIO     
    Loan/lease mix:     
    Commercial and industrial - revolving$332,996 $322,258 $263,441 $248,483 $175,155 
    Commercial and industrial - other 1,415,996  1,403,689  1,374,221  1,346,602  1,465,580 
    Total commercial and industrial 1,748,992  1,725,947  1,637,662  1,595,085  1,640,735 
    Commercial real estate, owner occupied 627,558  628,565  439,257  421,701  434,014 
    Commercial real estate, non-owner occupied 920,876  889,530  679,898  646,500  644,850 
    Construction and land development 1,149,503  1,080,372  863,116  918,571  852,418 
    Multi-family 933,118  860,742  711,682  600,412  529,727 
    Direct financing leases 33,503  40,050  43,330  45,191  50,237 
    1-4 family real estate 487,508  473,141  379,613  377,361  376,067 
    Consumer 107,552  99,556  73,310  75,311  71,682 
    Total loans/leases$6,008,610 $5,797,903 $4,827,868 $4,680,132 $4,599,730 
    Less allowance for credit losses 90,489  92,425  74,786  78,721  80,670 
    Net loans/leases$5,918,121 $5,705,478 $4,753,082 $4,601,411 $4,519,060 
          
    ANALYSIS OF SECURITIES PORTFOLIO     
    Securities mix:     
    U.S. government sponsored agency securities$20,527 $20,448 $21,380 $23,328 $23,689 
    Municipal securities 724,204  710,638  667,245  639,799  649,486 
    Residential mortgage-backed and related securities 68,844  81,247  86,381  94,323  100,744 
    Asset backed securities 19,630  19,956  23,233  27,124  30,607 
    Other securities 46,443  47,827  25,270  25,839  24,367 
    Total securities$879,648 $880,116 $823,509 $810,413 $828,893 
    Less allowance for credit losses 198  198  198  198  174 
    Net securities$879,450 $879,918 $823,311 $810,215 $828,719 
          
    ANALYSIS OF DEPOSITS     
    Deposit mix:     
    Noninterest-bearing demand deposits$1,315,555 $1,514,005 $1,275,493 $1,268,788 $1,342,273 
    Interest-bearing demand deposits 3,904,303  3,758,566  3,181,685  3,232,633  3,086,711 
    Time deposits 672,133  540,074  382,268  421,348  441,743 
    Brokered deposits 49,044  8,012  243  3  1,101 
    Total deposits$5,941,035 $5,820,657 $4,839,689 $4,922,772 $4,871,828 
          
    ANALYSIS OF BORROWINGS     
    Borrowings mix:     
    Overnight FHLB advances (1)$335,000 $400,000 $290,000 $15,000 $30,000 
    Other short-term borrowings 85,180  1,070  1,190  3,800  1,600 
    Subordinated notes 232,743  133,562  113,890  113,850  113,811 
    Junior subordinated debentures 48,568  48,534  38,190  38,155  38,103 
    Total borrowings$701,491 $583,166 $443,270 $170,805 $183,514 
          
    (1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 3.29%. 
          


     
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
          
     For the Quarter Ended
     September 30,June 30,March 31,December 31,September 30,
     20222022202220212021
     (dollars in thousands, except per share data)
          
    INCOME STATEMENT     
    Interest income$79,267 $68,205 $51,062 $52,020 $51,667 
    Interest expense 18,498  8,805  5,329  5,507  5,438 
    Net interest income 60,769  59,400  45,733  46,513  46,229 
    Provision for credit losses (1) -  11,200  (2,916) (3,227) - 
    Net interest income after provision for loan/lease losses$60,769 $48,200 $48,649 $49,740 $46,229 
          
          
    Trust department fees$2,537 $2,497 $2,963 $2,843 $2,714 
    Investment advisory and management fees 921  983  1,036  1,047  1,054 
    Deposit service fees 2,214  2,223  1,555  1,644  1,588 
    Gain on sales of residential real estate loans 641  809  493  922  954 
    Gain on sales of government guaranteed portions of loans 50  -  19  227  - 
    Swap fee income/capital markets revenue 10,545  13,004  6,422  12,982  24,885 
    Earnings on bank-owned life insurance 605  350  346  470  446 
    Debit card fees 1,453  1,499  1,007  1,072  1,085 
    Correspondent banking fees 189  244  277  266  265 
    Loan related fee income 652  682  480  536  550 
    Mark to market gain - derivatives 904  432  906  97  (17)
    Other 384  59  129  879  1,128 
    Total noninterest income$21,095 $22,782 $15,633 $22,985 $34,652 
          
          
    Salaries and employee benefits$29,175 $29,972 $23,627 $24,809 $28,207 
    Occupancy and equipment expense 6,033  5,978  3,937  3,723  4,122 
    Professional and data processing fees 4,477  4,365  3,671  3,866  3,568 
    Acquisition costs 315  1,973  1,851  624  - 
    Post-acquisition compensation, transition and integration costs 62  4,796  -  -  - 
    Disposition costs -  -  -  5  - 
    FDIC insurance, other insurance and regulatory fees 1,497  1,394  1,310  1,316  1,108 
    Loan/lease expense 390  761  267  606  308 
    Net cost of (income from) and gains/losses on operations of other real estate 19  59  (1) -  (1,346)
    Advertising and marketing 1,437  1,198  761  1,679  1,095 
    Communication 639  584  403  481  457 
    Supplies 289  237  246  274  298 
    Bank service charges 568  610  541  553  525 
    Correspondent banking expense 218  213  199  200  201 
    Intangibles amortization 787  787  493  508  508 
    Payment card processing 477  626  262  298  346 
    Trust expense 227  195  187  208  188 
    Other 1,136  500  571  262  1,802 
    Total noninterest expense$47,746 $54,248 $38,325 $39,412 $41,387 
          
    Net income before income taxes$34,118 $16,734 $25,957 $33,313 $39,494 
    Federal and state income tax expense 4,824  1,492  2,333  6,304  7,929 
    Net income$29,294 $15,242 $23,624 $27,009 $31,565 
          
    Basic EPS$1.73 $0.88 $1.51 $1.73 $2.02 
    Diluted EPS$1.71 $0.87 $1.49 $1.71 $1.99 
          
          
    Weighted average common shares outstanding 16,900,968  17,345,324  15,625,112  15,582,276  15,635,123 
    Weighted average common and common equivalent shares outstanding 17,110,691  17,549,107  15,852,256  15,838,246  15,869,798 
          
    (1) Provision for credit losses for the quarter ended June 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 Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
     
     For Nine Months Ended
     September 30, September 30,
     2022 2021
     (dollars in thousands, except per share data)
        
    INCOME STATEMENT   
    Interest income$198,534 $148,135 
    Interest expense 32,632  16,415 
    Net interest income 165,902  131,720 
    Provision for credit losses (1) 8,284  6,713 
    Net interest income after provision for loan/lease losses$157,618 $125,007 
        
        
    Trust department fees$7,997 $8,363 
    Investment advisory and management fees 2,940  3,033 
    Deposit service fees 5,992  4,488 
    Gain on sales of residential real estate loans 1,943  3,475 
    Gain on sales of government guaranteed portions of loans 69  - 
    Swap fee income/capital markets revenue 29,971  48,010 
    Securities gains (losses), net -  (88)
    Earnings on bank-owned life insurance 1,301  1,368 
    Debit card fees 3,959  3,144 
    Correspondent banking fees 710  848 
    Loan related fee income 1,814  1,732 
    Mark to market gain- derivatives 2,242  73 
    Other 572  2,991 
    Total noninterest income$59,510 $77,437 
        
        
    Salaries and employee benefits$82,774 $76,098 
    Occupancy and equipment expense 15,948  12,195 
    Professional and data processing fees 12,513  10,713 
    Acquisition costs 4,139  - 
    Post-acquisition compensation, transition and integration costs 4,858  - 
    Disposition costs -  8 
    FDIC insurance, other insurance and regulatory fees 4,201  3,159 
    Loan/lease expense 1,418  1,065 
    Net cost of (income from) and gains/losses on operations of other real estate 77  (1,420)
    Advertising and marketing 3,396  2,575 
    Communication 1,626  1,317 
    Supplies 772  779 
    Bank service charges 1,719  1,620 
    Correspondent banking expense 630  599 
    Intangibles amortization 2,067  1,524 
    Payment card processing 1,365  1,114 
    Trust expense 609  550 
    Other 2,207  2,394 
    Total noninterest expense$140,319 $114,290 
        
    Net income before income taxes$76,809 $88,154 
    Federal and state income tax expense 8,649  16,258 
    Net income$68,160 $71,896 
        
    Basic EPS$4.25 $4.54 
    Diluted EPS$4.20 $4.48 
        
        
    Weighted average common shares outstanding 16,030,371  15,829,124 
    Weighted average common and common equivalent shares outstanding 16,243,921  16,058,420 
        
    (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 Holdings, 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,
      2022  2022  2022  2021  2021   2022  2021 
     (dollars in thousands, except per share data)
             
    COMMON SHARE DATA        
    Common shares outstanding 16,885,485  17,064,347  15,579,605  15,613,460  15,590,428    
    Book value per common share (1)$43.65 $43.55 $42.87 $43.36 $41.68    
    Tangible book value per common share (Non-GAAP) (2)$34.46 $34.41 $37.55 $38.02 $36.30    
    Closing stock price$50.94 $53.99 $56.59 $56.00 $51.44    
    Market capitalization$860,147 $921,304 $881,650 $874,354 $801,972    
    Market price / book value 116.70% 123.97% 132.00% 129.15% 123.42%   
    Market price / tangible book value 147.81% 156.90% 150.71% 147.30% 141.72%   
    Earnings per common share (basic) LTM (3)$5.86 $6.14 $6.68 $6.30 $5.73    
    Price earnings ratio LTM (3) 8.70x 8.79x 8.47x 8.88x 8.98x   
    TCE / TA (Non-GAAP) (4) 7.68% 8.11% 9.60% 9.87% 9.54%   
             
             
    CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY    
    Beginning balance$743,138 $667,924 $677,010 $649,814 $630,476    
    Net income 29,294  15,242  23,624  27,009  31,565    
    Other comprehensive income (loss), net of tax (24,783) (24,286) (27,340) 295  (2,546)   
    Common stock cash dividends declared (1,012) (1,059) (938) (935) (946)   
    Issuance of 2,071,291 shares of common stock as a result of the acquisition of Guaranty Federal Bancshares -  117,214  -  -  -    
    Repurchase and cancellation of shares of common stock as a result of a share repurchase program (10,485) (33,016) (4,416) -  (9,367)   
    Other (5) 920  1,119  (16) 827  632    
    Ending balance$ 737,072 $ 743,138 $ 667,924 $ 677,010 $ 649,814    
             
             
    REGULATORY CAPITAL RATIOS (6):        
    Total risk-based capital ratio 14.55% 13.40% 14.50% 14.77% 14.64%   
    Tier 1 risk-based capital ratio 10.01% 10.18% 11.27% 11.46% 11.26%   
    Tier 1 leverage capital ratio 9.56% 9.61% 10.78% 10.46% 10.28%   
    Common equity tier 1 ratio 9.33% 9.46% 10.61% 10.76% 10.55%   
             
             
    KEY PERFORMANCE RATIOS AND OTHER METRICS         
    Return on average assets (annualized) 1.53% 0.83% 1.55% 1.76% 2.11%  1.30% 1.66%
    Return on average total equity (annualized) 15.39% 7.74% 13.81% 16.23% 19.30%  12.20% 15.27%
    Net interest margin 3.46% 3.53% 3.30% 3.29% 3.36%  3.44% 3.30%
    Net interest margin (TEY) (Non-GAAP)(7) 3.71% 3.74% 3.50% 3.50% 3.56%  3.66% 3.49%
    Efficiency ratio (Non-GAAP) (8) 58.32% 66.01% 62.45% 56.71% 51.17%  62.25% 54.64%
    Gross loans and leases / total assets 77.73% 78.42% 78.17% 76.77% 76.48%  77.73% 76.48%
    Gross loans and leases / total deposits 101.14% 99.61% 99.76% 95.07% 94.41%  101.14% 94.41%
    Effective tax rate 14.14% 8.92% 8.99% 18.92% 20.08%  11.26% 18.44%
    Full-time equivalent employees (9) 956  968  749  726  724   956  724 
             
             
    AVERAGE BALANCES         
    Assets$7,652,463 $7,324,470 $6,115,127 $6,121,446 $5,982,583  $7,005,988 $5,789,753 
    Loans/leases 5,916,100  5,711,471  4,727,478  4,608,111  4,529,136   5,456,037  4,405,355 
    Deposits 5,891,198  5,867,444  4,903,354  4,983,869  4,779,876   5,557,617  4,706,719 
    Total stockholders' equity 761,428  788,204  684,126  665,698  654,186   744,869  627,583 
             
             
             
    (1) Includes accumulated other comprehensive income (loss).
    (2) Includes accumulated other comprehensive income (loss) and excludes intangible assets (Non-GAAP).
    (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) Increase at June 30, 2022 due to the acquisition of Guaranty Bank.
             


                
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                
    ANALYSIS OF NET INTEREST INCOME AND MARGIN
    		         
                
     For the Quarter Ended
     September 30, 2022 June 30, 2022 September 30, 2021
     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$16,224$1002.45% $5,896$120.83% $3,030$10.10%
    Interest-bearing deposits at financial institutions 54,799 3812.76%  67,254 1691.01%  99,024 390.16%
    Securities (1) 946,096 9,6024.05%  920,308 9,0023.91%  799,471 7,6463.82%
    Restricted investment securities 42,638 6746.18%  37,166 4855.16%  20,910 2624.97%
    Loans (1) 5,916,100 72,9694.89%  5,711,471 61,9324.35%  4,529,136 46,4274.07%
    Total earning assets (1)$6,975,857$83,7264.76% $6,742,095$71,6004.26% $5,451,571$54,3753.96%
                
    Interest-bearing deposits$3,862,556$10,8891.12% $3,791,595$4,4780.47% $3,041,941$2,1830.28%
    Time deposits 593,490 1,6811.12%  529,675 1,0470.79%  461,210 1,0900.94%
    Short-term borrowings 11,376 842.94%  1,404 30.78%  6,858 10.10%
    Federal Home Loan Bank advances 418,239 2,5842.42%  286,484 7801.08%  54,293 410.30%
    Other borrowings 4,239 534.93%  - -0.00%  - -0.00%
    Subordinated debentures 181,177 2,5185.56%  133,529 1,8165.44%  113,789 1,5545.46%
    Junior subordinated debentures 48,551 6895.56%  46,536 6805.78%  38,084 5695.84%
    Total interest-bearing liabilities$5,119,628$18,4981.43% $4,789,223$8,8040.74% $3,716,175$5,4380.58%
                
    Net interest income (1) $65,228   $62,796   $48,937 
    Net interest margin (2)  3.46%   3.53%   3.36%
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.71%   3.74%   3.56%
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.65%   3.64%   3.53%
    Adjusted net interest margin, excluding PPP income (TEY) (Non-GAAP) (1) (2) (3) 3.65%   3.63%   3.39%
                
                
     For the Nine Months Ended    
     September 30, 2022 September 30, 2021  
     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$8,937$1141.70% $1,503$10.13%    
    Interest-bearing deposits at financial institutions 63,740 5841.23%  101,225 1100.15%    
    Securities (1) 890,082 26,2863.93%  802,715 21,9893.65%    
    Restricted investment securities 34,071 1,4395.57%  19,540 7184.85%    
    Loans (1) 5,456,037 180,8964.43%  4,405,355 132,7284.03%    
    Total earning assets (1)$6,452,867$209,3194.33% $5,330,338$155,5463.90%    
                
    Interest-bearing deposits$3,629,735$17,7040.65% $3,000,766$6,2190.28%    
    Time deposits 508,067 3,5270.93%  449,996 3,7161.10%    
    Short-term borrowings 4,945 872.37%  7,560 40.08%    
    Federal Home Loan Bank advances 264,718 3,4471.72%  29,875 660.29%    
    Other borrowings 1,429 534.90%  - -0.00%    
    Subordinated debentures 143,104 5,8885.49%  115,927 4,7185.43%    
    Junior subordinated debentures 44,457 1,9265.71%  38,045 1,6925.86%    
    Total interest-bearing liabilities$4,596,455$32,6320.95% $3,642,169$16,4150.60%    
                
    Net interest income (1) $176,687   $139,131     
    Net interest margin (2)  3.44%   3.30%    
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.66%   3.49%    
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.60%   3.46%    
    Adjusted net interest margin, excluding PPP income (TEY) (Non-GAAP) (1) (2) (3) 3.60%   3.31%    
                
                
    (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 Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
          
     As of
     September 30,June 30,March 31,December 31,September 30,
     20222022202220212021
     (dollars in thousands, except per share data)
          
    ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES     
    Beginning balance$92,425 $74,786 $78,721 $80,670 $78,894 
    Initial ACL recorded for acquired PCD loans -  5,902  -  -  - 
    Credit loss expense (1) 331  12,141  (3,849) (2,045) 1,895 
    Loans/leases charged off (2,489) (620) (456) (375) (287)
    Recoveries on loans/leases previously charged off 222  216  370  471  168 
    Ending balance$ 90,489 $ 92,425 $ 74,786 $ 78,721 $ 80,670 
          
          
    NONPERFORMING ASSETS      
    Nonaccrual loans/leases (2)$17,511 $23,574 $2,744 $2,759 $6,818 
    Accruing loans/leases past due 90 days or more 3  268  4  1  14 
    Total nonperforming loans/leases 17,514  23,842  2,748  2,760  6,832 
    Other real estate owned 177  205  -  -  - 
    Other repossessed assets 340  -  -  -  - 
    Total nonperforming assets$ 18,031 $ 24,047 $ 2,748 $ 2,760 $ 6,832 
          
          
    ASSET QUALITY RATIOS     
    Nonperforming assets / total assets 0.23% 0.33% 0.04% 0.05% 0.11%
    ACL for loans and leases / total loans/leases 1.51% 1.59% 1.55% 1.68% 1.75%
    ACL for loans and leases / nonperforming loans/leases 516.67% 387.66% 2721.47% 2852.21% 1180.77%
    Net charge-offs as a % of average loans/leases 0.04% 0.01% 0.00% 0.00% 0.00%
          
          
          
    INTERNALLY ASSIGNED RISK RATING (3)     
    Special mention (rating 6)$63,973 $54,558 $63,622 $62,510 $58,634 
    Substandard (rating 7) 77,317  83,048  54,491  53,159  59,402 
    Doubtful (rating 8) -  -  -  -  - 
     $141,290 $137,606 $118,113 $115,669 $118,036 
          
    Criticized loans (4)$141,290 $137,606 $118,113 $115,669 $118,036 
    Classified loans (5) 77,317  83,048  54,491  53,159  59,402 
          
    Criticized loans as a % of total loans/leases 2.35% 2.37% 2.45% 2.47% 2.57%
    Classified loans as a % of total loans/leases 1.29% 1.43% 1.13% 1.14% 1.29%
          
          
          
          
    (1) Credit loss expense on loans/leases for the quarter ended June 30, 2022 included $11.0 million related to the acquired Guaranty Bank non-PCD loans.
    (2) Nonaccrual loans for the quarter ended June 30, 2022 included $7.3 million related to the acquired Guaranty Bank loan portfolio.
    (3) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass (Rating 2) for the government guaranteed portion.
    (4) Criticized loans are defined as C&I and CRE loans with internally assigned risk ratings of 6, 7, or 8, regardless of performance.
    (5) Classified loans are defined as C&I and CRE loans with internally assigned risk ratings of 7 or 8, regardless of performance.
          


               
     QCR Holdings, 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 2022   2022   2021   2022   2021 
      (dollars in thousands)
               
     TOTAL ASSETS         
     Quad City Bank and Trust (1)$2,218,166  $2,122,852  $2,106,631     
     m2 Equipment Finance, LLC 298,640   289,451   259,543     
     Cedar Rapids Bank and Trust 2,108,614   1,985,199   2,019,018     
     Community State Bank - Ankeny 1,270,426   1,221,406   1,140,933     
     Guaranty Bank (2) 2,107,407   2,037,364   880,143     
               
     TOTAL DEPOSITS         
     Quad City Bank and Trust (1)$1,741,472  $1,787,564  $1,797,969     
     Cedar Rapids Bank and Trust 1,627,202   1,495,665   1,526,144     
     Community State Bank - Ankeny 1,036,998   1,006,836   994,042     
     Guaranty Bank (2) 1,632,107   1,539,978   605,947     
               
     TOTAL LOANS & LEASES         
     Quad City Bank and Trust (1)$1,806,776  $1,737,812  $1,636,170     
     m2 Equipment Finance, LLC 300,753   293,435   262,962     
     Cedar Rapids Bank and Trust 1,579,437   1,536,224   1,410,160     
     Community State Bank - Ankeny 973,083   931,031   834,533     
     Guaranty Bank (2) 1,649,313   1,592,836   718,867     
               
     TOTAL LOANS & LEASES / TOTAL DEPOSITS         
     Quad City Bank and Trust (1) 104%  97%  91%    
     Cedar Rapids Bank and Trust 97%  103%  92%    
     Community State Bank - Ankeny 94%  92%  84%    
     Guaranty Bank 101%  103%  119%    
               
     TOTAL LOANS & LEASES / TOTAL ASSETS         
     Quad City Bank and Trust (1) 81%  82%  78%    
     Cedar Rapids Bank and Trust 75%  77%  70%    
     Community State Bank - Ankeny 77%  76%  73%    
     Guaranty Bank 78%  78%  82%    
               
     ACL ON LOANS/LEASES AS A PERCENTAGE OF LOANS/LEASES         
     Quad City Bank and Trust (1)1.59% 1.68%  1.88%    
     m2 Equipment Finance, LLC3.13% 3.31%  3.78%    
     Cedar Rapids Bank and Trust1.54% 1.58%  1.85%    
     Community State Bank - Ankeny1.45% 1.57%  1.73%    
     Guaranty Bank1.42% 1.53%  1.30%    
               
     RETURN ON AVERAGE ASSETS          
     Quad City Bank and Trust (1) 1.41%  1.56%  1.66%  1.61%  1.55%
     Cedar Rapids Bank and Trust 2.83%  2.72%  3.93%  2.60%  2.95%
     Community State Bank - Ankeny 1.31%  1.12%  1.17%  1.28%  1.05%
     Guaranty Bank (3) (4) 1.76%  0.20%  2.09%  1.06%  1.69%
               
     NET INTEREST MARGIN PERCENTAGE (5)         
     Quad City Bank and Trust (1) 3.65%  3.74%  3.47%  3.63%  3.32%
     Cedar Rapids Bank and Trust (6) 4.02%  3.66%  3.68%  3.77%  3.61%
     Community State Bank - Ankeny (7) 3.69%  3.67%  3.78%  3.66%  3.71%
     Guaranty Bank (8) 4.10%  4.20%  3.67%  4.01%  3.59%
               
     ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET        
     INTEREST MARGIN, NET         
     Cedar Rapids Bank and Trust$5  $4  $64  $60  $169 
     Community State Bank - Ankeny 62   28   52  $123   437 
     Guaranty Bank 1,047   1,698   376  $2,814   755 
     QCR Holdings, Inc. (9) (34)  (35)  (36) $(104)  (110)
               
    (1)Quad City Bank and Trust figures 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)Increase due to the acquisition of Guaranty Bank on April 1, 2022, merging into Springfield First Community Bank with the combined bank operating under the Guaranty Bank name.  
    (3)Decrease due to CECL Day 2 provision for credit losses of $12.4 million related to the acquisition of Guaranty Bank during the quarter ended June 30, 2022.  
    (4)Adjusted ROAA excluding non-core adjustments for the Guaranty Bank acquisition (non-GAAP) would have been 2.12% for the quarter ended June 30, 2022 and 1.84% for the nine months ended September 30, 2022.
    (5)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.  
    (6)Cedar Rapids Bank and Trust's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 4.02% for the quarter ended September 30, 2022, 3.62% for the quarter ended June 30, 2022 and 3.66% for the quarter ended September 30, 2021.
    (7)Community State Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 3.72% for the quarter ended September 30, 2022, 3.66% for the quarter ended June 30, 2022 and 3.66% for the quarter ended June 30, 2021.  
    (8)Guaranty Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 3.91% for the quarter ended September 30, 2022, 3.82% for the quarter ended June 30, 2022 and 3.67% for the quarter ended June 30, 2021.  
    (9)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 Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
               
      As of
      September 30, June 30, March 31, December 31, September 30,
    GAAP TO NON-GAAP RECONCILIATIONS 2022 2022 2022 2021 2021
      (dollars in thousands, except per share data)
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)          
               
    Stockholders' equity (GAAP) $737,072  $743,138  $667,924  $677,010  $649,814 
    Less: Intangible assets  155,153   155,940   82,922   83,415   83,923 
    Tangible common equity (non-GAAP) $581,919  $587,198  $585,002  $593,595  $565,891 
               
    Total assets (GAAP) $7,730,049  $7,392,941  $6,175,819  $6,096,132  $6,014,508 
    Less: Intangible assets  155,153   155,940   82,922   83,415   83,923 
    Tangible assets (non-GAAP) $7,574,896  $7,237,001  $6,092,897  $6,012,717  $5,930,585 
               
    Tangible common equity to tangible assets ratio (non-GAAP) 7.68%  8.11%  9.60%  9.87%  9.54%
               
               
               
    (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 Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                  
    GAAP TO NON-GAAP RECONCILIATIONSFor 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)2022 2022 2022 2021 2021 2022 2021
     (dollars in thousands, except per share data)
                  
    Net income (GAAP)$29,294  $15,242  $23,624  $27,009  $31,565  $68,160  $71,896 
                  
    Less non-core items (post-tax) (2):             
    Income:             
    Securities gains (losses), net -   -   -   -   -  $-  $(69)
    Mark to market gains (losses) on derivatives, net 714   342   715   77   (13)  1,771  $58 
    Gain on sale of loan -   -   -   -   28   -  $28 
    Total non-core income (non-GAAP)$714  $342  $715  $77  $15  $1,771  $17 
                  
    Expense:             
    Disposition costs -   -   -   3   -   -   7 
    Acquisition costs (2) 321   1,932   1,462   493   -   3,715   - 
    Post-acquisition compensation, transition and integration costs 48   3,789   -   -   -   3,837   - 
    Separation agreement -   -   -   -   -   -   734 
    CECL Day 2 provision for credit losses on acquired non-PCD loans (3) -   8,651   -   -   -   8,651   - 
    CECL Day 2 provision for credit losses provision on acquired OBS exposure (3) -   1,140   -   -   -   1,140   - 
    Loss on sale of subsidiary -   -   -   -   -   -   - 
    Total non-core expense (non-GAAP)$369  $15,512  $1,462  $496  $-  $17,343  $741 
    Adjusted net income (non-GAAP) (1)$ 28,949  $ 30,412  $ 24,371  $ 27,428  $ 31,550  $ 83,732  $ 72,620 
                  
    ADJUSTED EARNINGS PER COMMON SHARE (1)             
                  
    Adjusted net income (non-GAAP) (from above)$28,949  $30,412  $24,371  $27,428  $31,550  $83,732  $72,620 
                  
    Weighted average common shares outstanding 16,900,968   17,345,324   15,625,112   15,582,276   15,635,123   16,030,371   15,829,124 
    Weighted average common and common equivalent shares outstanding 17,110,691   17,549,107   15,852,256   15,838,246   15,869,798   16,243,921   16,058,420 
                  
    Adjusted earnings per common share (non-GAAP):             
    Basic$ 1.71  $ 1.75  $ 1.56  $ 1.76  $ 2.02  $ 5.22  $ 4.59 
    Diluted$ 1.69  $ 1.73  $ 1.54  $ 1.73  $ 1.99  $ 5.15  $ 4.52 
                  
    ADJUSTED RETURN ON AVERAGE ASSETS (1)             
                  
    Adjusted net income (non-GAAP) (from above)$28,949  $30,412  $24,371  $27,428  $31,550  $83,732  $72,620 
                  
    Average Assets$7,652,463  $7,324,470  $6,115,127  $6,121,446  $5,982,583  $7,005,988  $5,789,753 
                  
    Adjusted return on average assets (annualized) (non-GAAP) 1.51%  1.66%  1.59%  1.79%  2.11%  1.59%  1.67%
                  
    NET INTEREST MARGIN (TEY) (4)             
                  
    Net interest income (GAAP)$60,769  $59,400  $45,733  $46,513  $46,229  $165,902  $131,720 
    Plus: Tax equivalent adjustment (5) 4,459   3,396   2,933   2,800   2,708   10,785   7,411 
    Net interest income - tax equivalent (Non-GAAP)$65,228  $62,796  $48,666  $49,313  $48,937  $176,687  $139,131 
    Less: Acquisition accounting net accretion 1,080   1,695   118   88   456   2,893   1,251 
    Adjusted net interest income$64,148  $61,101  $48,548  $49,225  $48,481  $173,794  $137,880 
    Less: PPP income -   125   530   1,365   1,910   125   5,831 
    Adjusted net interest income, excluding PPP income$64,148  $60,976  $48,018  $47,860  $46,571  $173,669  $132,049 
                  
    Average earning assets$6,975,857  $6,742,095  $5,625,813  $5,602,222  $5,451,571  $6,452,867  $5,330,338 
                  
    Net interest margin (GAAP) 3.46%  3.53%  3.30%  3.29%  3.36%  3.44%  3.30%
    Net interest margin (TEY) (Non-GAAP) 3.71%  3.74%  3.50%  3.50%  3.56%  3.66%  3.49%
    Adjusted net interest margin (TEY) (Non-GAAP) 3.65%  3.64%  3.50%  3.49%  3.53%  3.60%  3.46%
    Adjusted net interest margin, excluding PPP income (TEY) (Non-GAAP) 3.65%  3.63%  3.46%  3.39%  3.39%  3.60%  3.31%
                  
    EFFICIENCY RATIO (6)             
                  
    Noninterest expense (GAAP)$47,746  $54,248  $38,325  $39,412  $41,387  $140,319  $114,290 
    Net interest income (GAAP)$60,769  $59,400  $45,733  $46,513  $46,229  $165,902 $-$131,720 
    Noninterest income (GAAP) 21,095   22,782   15,633   22,985   34,652   59,510   77,437 
    Total income$81,864  $82,182  $61,366  $69,498  $80,881  $225,412  $209,157 
                  
    Efficiency ratio (noninterest expense/total income) (Non-GAAP) 58.32%  66.01%  62.45%  56.71%  51.17%  62.25%  54.64%
                  
    LOAN GROWTH ANNUALIZED, EXCLUDING ACQUIRED AND PPP LOANS             
    Total loans and leases$6,008,610  $5,797,903  $4,827,868  $4,680,132  $4,599,730  $6,008,610  $4,599,730 
          Less: Acquired loans (7) -   807,599   -   -   -   -   - 
          Less: PPP loans 79   79   6,340   28,181   83,575   79   83,575 
    Total loans and leases, excluding acquired and PPP loans$6,008,531  $4,990,225  $4,821,528  $4,651,951  $4,516,155  $6,008,531 $-$4,516,155 
                  
    Loan growth annualized, excluding acquired and PPP loans 14.54%  14.00%  14.58%  12.03%  23.04%  15.73%  16.08%
                  
                  
    (1) Adjusted net income, Adjusted net income attributable to QCR Holdings, Inc. common stockholders, Adjusted earnings per common share and Adjusted return on average assets 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, this non-GAAP measure is 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 tax rate of 21% with the exception of acquisition costs which have an estimated effective tax rate of 10.25%. 
    (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 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.  
    (7) Loan balances acquired from the Guaranty Bank acquisition on April 1, 2022 are excluded.            
                  

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