QCRH QCR Holdings Inc

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

 

Form 8-K

 

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event Reported): October 23, 2024

 

QCR Holdings, Inc.

(Exact Name of Registrant as Specified in Charter)

 

Delaware	0-22208	42-1397595
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

 

3551 Seventh Street, Moline, Illinois 61265

(Address of Principal Executive Offices) (Zip Code)

 

(309) 736-3584

(Registrant's telephone number, including area code)

 

N/A
(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: 

 

¨

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 Par Value	QCRH	The Nasdaq Global Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

 

 

 

Item 2.02. Results of Operations and Financial Condition.

 

On October 23, 2024, QCR Holdings, Inc. (the “Company”) issued a press release disclosing financial results for the quarter ended September 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

 

The information in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

 

Item 9.01.

Financial Statements and Exhibits.

 

	(d) Exhibits.
	99.1	Press Release dated October 23, 2024.
	104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	QCR Holdings, Inc.
Date: October 23, 2024	By:	/s/ Todd A. Gipple
		Todd A. Gipple
		President and Chief Financial Officer

 

 

 

Exhibit 99.1

 

 

 

PRESS RELEASE

FOR IMMEDIATE RELEASE

 

QCR Holdings, Inc. Announces Net Income of $27.8 Million

for the Third Quarter of 2024

 

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, IL, October 23, 2024 – 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)		2024				2024				2023
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,
		2024				2024				2024				2023				2023
		(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,
		2024				2024				2024				2023				2023
		(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,
		2024				2024				2024				2023				2023				2024				2023
		(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 x				8.85 x				9.00 x				8.61 x				7.30 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			$	173				5.37	%		$	13,065			$	183				5.54	%		$	21,526			$	284				5.23	%
Interest-bearing deposits at financial institutions			145,597				1,915				5.23	%			80,998				1,139				5.66	%			86,807				1,205				5.51	%
Investment securities - taxable			381,285				4,439				4.64	%			377,747				4,286				4.53	%			344,657				3,788				4.38	%
Investment securities - nontaxable (1)			760,645				10,744				5.65	%			704,761				9,462				5.37	%			600,693				6,974				4.64	%
Restricted investment securities			42,546				840				7.73	%			43,398				869				7.92	%			43,590				659				5.91	%
Loans (1)			6,840,527				116,854				6.80	%			6,779,075				112,719				6.69	%			6,476,512				103,428				6.34	%
Total earning assets (1)		$	8,183,196			$	134,965				6.56	%		$	7,999,044			$	128,658				6.46	%		$	7,573,785			$	116,338				6.10	%
Interest-bearing deposits		$	4,739,757			$	42,180				3.54	%		$	4,649,625			$	40,924				3.54	%		$	4,264,208			$	33,563				3.12	%
Time deposits			1,164,560				13,206				4.51	%			1,091,870				12,128				4.47	%			999,488				10,003				3.97	%
Short-term borrowings			2,485				32				5.07	%			1,622				21				5.18	%			1,514				20				5.28	%
Federal Home Loan Bank advances			445,632				5,972				5.24	%			464,231				6,238				5.32	%			425,870				5,724				5.26	%
Subordinated debentures			233,313				3,616				6.20	%			233,207				3,582				6.14	%			232,890				3,307				5.68	%
Junior subordinated debentures			48,806				693				5.56	%			48,774				688				5.58	%			48,678				695				5.59	%
Total interest-bearing liabilities		$	6,634,553			$	65,699				3.93	%		$	6,489,329			$	63,581				3.93	%		$	5,972,648			$	53,312				3.54	%
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 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		$	15,196			$	625				5.40	%		$	19,267			$	741				5.14	%
Interest-bearing deposits at financial institutions			106,195				4,254				5.35	%			83,783				3,151				5.03	%
Investment securities - taxable			377,538				12,986				4.57	%			340,140				10,847				4.24	%
Investment securities - nontaxable (1)			717,284				29,557				5.50	%			599,070				19,892				4.43	%
Restricted investment securities			41,348				2,383				7.57	%			38,817				1,677				5.70	%
Loans (1)			6,739,773				337,244				6.68	%			6,288,343				285,136				6.06	%
Total earning assets (1)		$	7,997,334			$	387,049				6.46	%		$	7,369,420			$	321,444				5.83	%
Interest-bearing deposits		$	4,639,937			$	122,207				3.52	%		$	4,099,789			$	84,565				2.76	%
Time deposits			1,121,508				37,679				4.49	%			1,020,421				27,225				3.57	%
Short-term borrowings			1,846				76				5.47	%			3,588				152				5.66	%
Federal Home Loan Bank advances			421,782				16,948				5.28	%			311,740				11,898				5.03	%
Subordinated debentures			233,207				10,678				6.10	%			232,784				9,922				5.68	%
Junior subordinated debentures			48,774				2,074				5.59	%			48,646				2,129				5.77	%
Total interest-bearing liabilities		$	6,467,054			$	189,662				3.91	%		$	5,716,968			$	135,891				3.17	%
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,
		2024				2024				2024				2023				2023
		(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 Ended												For 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.

 

v3.24.3

Cover	Oct. 23, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Oct. 23, 2024
Entity File Number	0-22208
Entity Registrant Name	QCR Holdings, Inc.
Entity Central Index Key	0000906465
Entity Tax Identification Number	42-1397595
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	3551 Seventh Street
Entity Address, City or Town	Moline
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	61265
City Area Code	309
Local Phone Number	736-3584
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $1.00 Par Value
Trading Symbol	QCRH
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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