QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced
net income of $28.4 million and diluted earnings per share (“EPS”)
of $1.69 for the second quarter of 2023, compared to net income of
$27.2 million and diluted EPS of $1.60 for the first quarter of
2023.
“We delivered outstanding second quarter results, highlighted by
robust loan and core deposit growth, significant fee income and
continued strong asset quality,” said Larry J. Helling, Chief
Executive Officer. “In addition, we continued to improve upon our
already solid capital levels with exceptional earnings
performance.”
Robust Core Deposit Growth and
Strengthened Liquidity
During the second quarter of 2023, the Company’s core deposits,
which exclude brokered deposits, grew $339.3 million to a total of
$6.2 billion, or 23.0% on an annualized basis. Total uninsured and
uncollateralized deposits further improved during the second
quarter and represented 19.9% of total deposits at quarter-end. The
Company maintained approximately $1.5 billion of immediately
available liquidity at quarter-end, which exceeds the total amount
of uninsured and uncollateralized deposits.
“Our experienced bankers grew core deposits significantly during
the quarter building upon our strong and diversified deposit
franchise. As a result, our ratio of loans held for investment to
deposits further improved to 92.1%,” added Mr. Helling. “We are
very pleased with our level of uninsured and uncollateralized
deposits and our strong liquidity position.”
Net Income of $28.4 Million and Diluted
EPS of $1.69
Both reported and adjusted (non-GAAP) net income and diluted EPS
for the second quarter of 2023 were $28.4 million and $1.69,
respectively. For the first quarter of 2023, net income and diluted
EPS was $27.2 million and $1.60, respectively while adjusted net
income (non-GAAP) was $28.0 million and adjusted diluted EPS
(non-GAAP) was $1.65. For the second quarter of 2022, net income
and diluted EPS were $15.2 million and $0.87, respectively, and
adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP)
were $30.4 million and $1.73, respectively.
|
For the Quarter Ended |
|
|
|
June 30, |
March 31, |
June 30, |
|
|
$ in millions (except per
share data) |
2023 |
2023 |
2022 |
|
|
Net Income |
$ |
28.4 |
$ |
27.2 |
$ |
15.2 |
|
|
Diluted EPS |
$ |
1.69 |
$ |
1.60 |
$ |
0.87 |
|
|
Adjusted Net Income
(non-GAAP)* |
$ |
28.4 |
$ |
28.0 |
$ |
30.4 |
|
|
Adjusted Diluted EPS
(non-GAAP)* |
$ |
1.69 |
$ |
1.65 |
$ |
1.73 |
|
|
|
|
|
|
|
|
|
|
|
*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.
Net Interest Income of $53.2
Million
Net interest income for the second quarter of 2023 totaled $53.2
million, compared to $56.8 million for the first quarter of 2023
and $59.4 million for the second quarter of 2022. Adjusted net
interest income (non-GAAP) during the quarter was $59.6 million, a
decrease of $2.4 million from the prior quarter.
Acquisition-related net accretion totaled $134 thousand for the
second quarter of 2023, compared to $828 thousand in the first
quarter.
In the second quarter of 2023, net interest margin (“NIM”) was
2.93% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP)
was 3.29%, compared to 3.18% and 3.52% in the prior quarter,
respectively. Adjusted NIM TEY (non-GAAP) of 3.28% declined by 19
basis points from 3.47% in the first quarter.
“Our adjusted tax-equivalent NIM declined 19 basis points during
the second quarter which was inside of our guidance range,” said
Todd A. Gipple, President and Chief Financial Officer. “With the
inverted yield curve and the competitive deposit landscape, our net
interest income was pressured despite continued loan growth and the
ongoing expansion of loan yields. During the second quarter, we
experienced an increase in the cost of funds as our deposit mix
continued to shift from noninterest-bearing and lower beta deposits
to higher beta deposits.”
Noninterest Income Grew 26% to $32.5
Million
Noninterest income for the second quarter of 2023 totaled $32.5
million, up 25.8% from $25.8 million for the first quarter of 2023.
The Company generated $22.5 million of capital markets revenue in
the quarter, an increase of $5.5 million, or 32.1% from the first
quarter. Wealth management revenue was $3.8 million for the
quarter, consistent with the prior quarter.
“Capital markets revenue was $22.5 million in the second
quarter, up significantly from the first quarter and well ahead of
our guidance range,” added Mr. Gipple. “Capital markets revenue
from swaps continues to benefit from stabilization in the supply
chain and construction costs. The demand for affordable housing
continues to be strong. This source of fee income has been
consistent for us over the last several years. Based on decades of
stability in the low-income housing tax credit (“LIHTC”) industry
and our own experience, we believe that this business is
countercyclical and will be very resilient in future recessionary
environments.”
Noninterest Expenses Remain
Well-Controlled
Noninterest expense for the second quarter of 2023 totaled $49.7
million, which is a modest increase of only 1.9% from $48.8 million
for the first quarter of 2023, and compared to $54.2 million for
the second quarter of 2022. The linked-quarter increase was
primarily due to higher variable compensation, increased Insured
Cash Sweep (“ICS”) fees and FDIC insurance rates. These increases
were partially offset by well-controlled salaries and employee
benefits expenses.
Exceptional Loan Growth of 12.2%
Annualized
During the second quarter of 2023, the Company’s loans and
leases grew $189.3 million to a total of $6.4 billion, or 12.2% on
an annualized basis. “Our loan growth during the quarter was driven
primarily by strength in our LIHTC lending business. Our clients
continue to experience strong demand for their projects as the need
for affordable housing exceeds supply in the markets they serve,”
added Mr. Helling.
“We also experienced modest loan demand in the second quarter
from our traditional commercial lending and leasing businesses. As
a result, we are increasing our guidance for loan growth for the
remainder of the year to be in the range of 9 to 12% on an
annualized basis, which would result in a 0 to 3% growth rate on an
annualized basis net of planned LIHTC loan securitizations. In the
first quarter of 2023, we categorized $139.2 million of LIHTC loans
as held for sale as part of a future loan securitization
transaction. During the second quarter of 2023, we increased the
size of our planned securitizations of LIHTC loans, adding an
additional $151.8 of loans for a total of $291.1 million to achieve
improved pricing and execution. We now expect to close on the
transactions early in the fourth quarter,” said Mr. Helling.
Asset Quality Remains
Excellent
“Our asset quality continues to be strong as the ratio of
nonperforming assets to total assets was 0.32% at quarter-end and
compares favorably to historical averages. We remain cautiously
optimistic about the relative economic resiliency of our markets as
unemployment is low and business activity is still healthy across
our footprint,” said Mr. Helling.
Nonperforming assets (“NPAs”) increased modestly during the
quarter to $26.1 million or 32 basis points of total assets.
“Approximately half of the total dollar amount of NPAs consist of
one relationship and we believe that this credit will be resolved
without a loss,” added Mr. Helling. The Company’s criticized loans
and classified loans to total loans and leases on June 30, 2023,
improved to 2.84% and 1.00%, respectively, as compared to 3.16% and
1.14% as of March 31, 2023.
The Company recorded a total provision for credit losses of $3.6
million during the quarter which included $3.3 million of provision
on loans/leases. As of June 30, 2023, the ACL to total loans/leases
held for investment was 1.41%.
Continued Strong Capital
Levels
As of June 30, 2023, the Company’s total risk-based capital
ratio was 14.66%, the common equity tier 1 ratio was 9.71% and the
tangible common equity to tangible assets ratio (non-GAAP) was
8.28%. By comparison, these respective ratios were 14.68%, 9.60%
and 8.21% as of March 31, 2023. During the quarter, we repurchased
a modest number of shares, as our priority has shifted to capital
retention, targeting capital levels near the top of our peer
group.
The Company’s tangible book value per share (non-GAAP) increased
$1.28, or 13.2% annualized during the second quarter. Accumulated
other comprehensive income (“AOCI”) declined $6.3 million during
the quarter due to a decrease in the value of the Company’s
available for sale securities portfolio and certain derivatives
resulting from the change in interest rates during the second
quarter. While the net decline in AOCI diluted the Company’s
tangible common equity, strong earnings more than offset this
impact, which led to the increase in tangible book value per share
(non-GAAP).
Conference Call Details
The Company will host an earnings call/webcast tomorrow, July
27, 2023, at 10:00 a.m. Central Time. Dial-in information for the
call is toll-free: 888-346-9286 (international 412-317-5253).
Participants should request to join the QCR Holdings, Inc. call.
The event will be available for replay through August 3, 2023. The
replay access information is 877-344-7529 (international
412-317-0088); access code 5035792. 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 UsQCR 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 36 locations in Iowa, Missouri, Wisconsin and Illinois.
As of June 30, 2023, the Company had $8.2 billion in assets, $6.4
billion in loans and $6.6 billion in deposits. For additional
information, please visit the Company’s website at
www.qcrh.com.
Special Note Concerning Forward-Looking
Statements. This document contains, and future oral and
written statements of the Company and its management may contain,
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 with respect to the
financial condition, results of operations, plans, objectives,
future performance and business of the Company. Forward-looking
statements, which may be based upon beliefs, expectations and
assumptions of the Company’s management and on information
currently available to management, are generally identifiable by
the use of words such as “believe,” “expect,” “anticipate,” “bode”,
“predict,” “suggest,” “project”, “appear,” “plan,” “intend,”
“estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,”
“likely,” “might,” “potential,” “continue,” “annualized,” “target,”
“outlook,” as well as the negative forms of those words, or other
similar expressions. Additionally, all statements in this document,
including forward-looking statements, speak only as of the date
they are made, and the Company undertakes no obligation to update
any statement in light of new information or future events.
A number of factors, many of which are beyond the ability of the
Company to control or predict, could cause actual results to differ
materially from those in its forward-looking statements. These
factors include, among others, the following: (i) the strength
of the local, state, national and international economies(including
effects of inflationary pressures and supply chain constraints);
(ii) the economic impact of any future terrorist threats and
attacks, widespread disease or pandemics (including the COVID-19
pandemic in the United States), acts of war or other threats
thereof (including the Russian invasion of Ukraine), or other
adverse external events that could cause economic deterioration or
instability in credit markets, and the response of the local, state
and national governments to any such adverse external events;
(iii) changes in accounting policies and practices, as may be
adopted by state and federal regulatory agencies, the FASB or the
PCAOB; (iv) changes in local, state and federal laws, regulations
and governmental policies concerning the Company’s general business
and any changes in response to the recent failures of other banks;
(v) changes in interest rates and prepayment rates of the Company’s
assets (including the impact of LIBOR phase-out);
(vi) increased competition in the financial services sector,
including from non-bank competitors such as credit unions and
“fintech” companies, and the inability to attract new customers;
(vii) changes in technology and the ability to develop and
maintain secure and reliable electronic systems; (viii) unexpected
results of acquisitions, which may include failure to realize the
anticipated benefits of acquisitions and the possibility that
transaction costs may be greater than anticipated; (ix) the
loss of key executives or employees; (x) changes in consumer
spending; (xi) unexpected outcomes of existing or new litigation
involving the Company; (xii) the economic impact of exceptional
weather occurrences such as tornadoes, floods and blizzards; (xiii)
fluctuations in the value of securities held in our securities
portfolio; (xiv) concentrations within our loan portfolio, large
loans to certain borrowers, and large deposits from certain
clients; (xv) the concentration of large deposits from certain
clients who have balances above current FDIC insurance limits and
may withdraw deposits to diversity their exposure; (xvi) the level
of non-performing assets on our balance sheets; (xvii)
interruptions involving our information technology and
communications systems or third-party servicers; (xviii) breaches
or failures of our information security controls or
cybersecurity-related incidents, and (xixi) the ability of the
Company to manage the risks associated with the foregoing as well
as anticipated. These risks and uncertainties should be
considered in evaluating forward-looking statements and undue
reliance should not be placed on such statements. Additional
information concerning the Company and its business, including
additional factors that could materially affect the Company’s
financial results, is included in the Company’s filings with the
Securities and Exchange Commission.
Contact:Todd A.
Gipple President
and Chief Financial
Officer (309)
743-7745 tgipple@qcrh.com
QCR Holding, Inc. |
Consolidated Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
As of |
|
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
CONDENSED BALANCE SHEET |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
$ |
84,084 |
|
$ |
64,295 |
|
$ |
59,723 |
|
$ |
86,282 |
|
$ |
92,379 |
|
|
Federal funds sold and interest-bearing deposits |
|
175,012 |
|
|
253,997 |
|
|
124,270 |
|
|
71,043 |
|
|
56,532 |
|
|
Securities, net of allowance for credit losses |
|
882,888 |
|
|
877,446 |
|
|
928,102 |
|
|
879,450 |
|
|
879,918 |
|
|
Loans receivable held for sale (1) |
|
295,057 |
|
|
140,633 |
|
|
1,480 |
|
|
3,054 |
|
|
1,186 |
|
|
Loans/leases receivable held for investment |
|
6,084,263 |
|
|
6,049,389 |
|
|
6,137,391 |
|
|
6,005,556 |
|
|
5,796,717 |
|
|
Allowance for credit losses |
|
(85,797 |
) |
|
(86,573 |
) |
|
(87,706 |
) |
|
(90,489 |
) |
|
(92,425 |
) |
|
Intangibles |
|
15,228 |
|
|
15,993 |
|
|
16,759 |
|
|
17,546 |
|
|
18,333 |
|
|
Goodwill |
|
139,027 |
|
|
138,474 |
|
|
137,607 |
|
|
137,607 |
|
|
137,607 |
|
|
Derivatives |
|
170,294 |
|
|
130,350 |
|
|
177,631 |
|
|
185,037 |
|
|
97,455 |
|
|
Other assets |
|
466,617 |
|
|
452,900 |
|
|
453,580 |
|
|
434,963 |
|
|
405,239 |
|
|
Total assets |
$ |
8,226,673 |
|
$ |
8,036,904 |
|
$ |
7,948,837 |
|
$ |
7,730,049 |
|
$ |
7,392,941 |
|
|
|
|
|
|
|
|
|
Total deposits |
$ |
6,606,720 |
|
$ |
6,501,663 |
|
$ |
5,984,217 |
|
$ |
5,941,035 |
|
$ |
5,820,657 |
|
|
Total borrowings |
|
418,368 |
|
|
417,480 |
|
|
825,894 |
|
|
701,491 |
|
|
583,166 |
|
|
Derivatives |
|
195,841 |
|
|
150,401 |
|
|
200,701 |
|
|
209,479 |
|
|
113,305 |
|
|
Other liabilities |
|
183,055 |
|
|
165,866 |
|
|
165,301 |
|
|
140,972 |
|
|
132,675 |
|
|
Total stockholders' equity |
|
822,689 |
|
|
801,494 |
|
|
772,724 |
|
|
737,072 |
|
|
743,138 |
|
|
Total liabilities and stockholders' equity |
$ |
8,226,673 |
|
$ |
8,036,904 |
|
$ |
7,948,837 |
|
$ |
7,730,049 |
|
$ |
7,392,941 |
|
|
|
|
|
|
|
|
|
ANALYSIS OF LOAN PORTFOLIO |
|
|
|
|
|
|
Loan/lease mix: |
|
|
|
|
|
|
Commercial and industrial - revolving |
$ |
304,617 |
|
$ |
307,612 |
|
$ |
296,869 |
|
$ |
332,996 |
|
$ |
322,258 |
|
|
Commercial and industrial - other |
|
1,402,553 |
|
|
1,420,331 |
|
|
1,451,693 |
|
|
1,415,996 |
|
|
1,403,689 |
|
|
Total commercial and industrial |
|
1,707,170 |
|
|
1,727,943 |
|
|
1,748,562 |
|
|
1,748,992 |
|
|
1,725,947 |
|
|
Commercial real estate, owner occupied |
|
609,717 |
|
|
616,922 |
|
|
629,367 |
|
|
627,558 |
|
|
628,565 |
|
|
Commercial real estate, non-owner occupied |
|
963,814 |
|
|
982,716 |
|
|
963,239 |
|
|
920,876 |
|
|
889,530 |
|
|
Construction and land development* |
|
1,307,766 |
|
|
1,208,185 |
|
|
1,192,061 |
|
|
1,149,503 |
|
|
1,080,372 |
|
|
Multi-family* |
|
1,100,794 |
|
|
969,870 |
|
|
963,803 |
|
|
933,118 |
|
|
860,742 |
|
|
Direct financing leases |
|
32,937 |
|
|
35,373 |
|
|
31,889 |
|
|
33,503 |
|
|
40,050 |
|
|
1-4 family real estate |
|
535,405 |
|
|
532,491 |
|
|
499,529 |
|
|
487,508 |
|
|
473,141 |
|
|
Consumer |
|
121,717 |
|
|
116,522 |
|
|
110,421 |
|
|
107,552 |
|
|
99,556 |
|
|
Total loans/leases |
$ |
6,379,320 |
|
$ |
6,190,022 |
|
$ |
6,138,871 |
|
$ |
6,008,610 |
|
$ |
5,797,903 |
|
|
Less allowance for credit losses |
|
85,797 |
|
|
86,573 |
|
|
87,706 |
|
|
90,489 |
|
|
92,425 |
|
|
Net loans/leases |
$ |
6,293,523 |
|
$ |
6,103,449 |
|
$ |
6,051,165 |
|
$ |
5,918,121 |
|
$ |
5,705,478 |
|
|
|
|
|
|
|
|
|
*The LIHTC lending business is a significant part of the Company's
Construction and Multi-family loans. For the quarter ended June 30,
2023, the LIHTC portion of the Construction loans was
$870 million, or 67%, and the LIHTC portion of the Multi-family
loans was $820 million, or 75%. |
|
|
|
|
|
|
|
ANALYSIS OF SECURITIES PORTFOLIO |
|
|
|
|
|
|
Securities mix: |
|
|
|
|
|
|
U.S. government sponsored agency securities |
$ |
18,942 |
|
$ |
19,320 |
|
$ |
16,981 |
|
$ |
20,527 |
|
$ |
20,448 |
|
|
Municipal securities |
|
743,608 |
|
|
731,689 |
|
|
779,450 |
|
|
724,204 |
|
|
710,638 |
|
|
Residential mortgage-backed and related securities |
|
60,958 |
|
|
63,104 |
|
|
66,215 |
|
|
68,844 |
|
|
81,247 |
|
|
Asset backed securities |
|
17,393 |
|
|
17,967 |
|
|
18,728 |
|
|
19,630 |
|
|
19,956 |
|
|
Other securities |
|
43,156 |
|
|
46,535 |
|
|
46,908 |
|
|
46,443 |
|
|
47,827 |
|
|
Total securities |
$ |
884,057 |
|
$ |
878,615 |
|
$ |
928,282 |
|
$ |
879,648 |
|
$ |
880,116 |
|
|
Less allowance for credit losses |
|
1,169 |
|
|
1,169 |
|
|
180 |
|
|
198 |
|
|
198 |
|
|
Net securities |
$ |
882,888 |
|
$ |
877,446 |
|
$ |
928,102 |
|
$ |
879,450 |
|
$ |
879,918 |
|
|
|
|
|
|
|
|
|
ANALYSIS OF DEPOSITS |
|
|
|
|
|
|
Deposit mix: |
|
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
1,101,605 |
|
$ |
1,189,858 |
|
$ |
1,262,981 |
|
$ |
1,315,555 |
|
$ |
1,514,005 |
|
|
Interest-bearing demand deposits |
|
4,374,847 |
|
|
4,033,193 |
|
|
3,875,497 |
|
|
3,904,303 |
|
|
3,758,566 |
|
|
Time deposits |
|
765,801 |
|
|
679,946 |
|
|
744,593 |
|
|
672,133 |
|
|
540,074 |
|
|
Brokered deposits |
|
364,467 |
|
|
598,666 |
|
|
101,146 |
|
|
49,044 |
|
|
8,012 |
|
|
Total deposits |
$ |
6,606,720 |
|
$ |
6,501,663 |
|
$ |
5,984,217 |
|
$ |
5,941,035 |
|
$ |
5,820,657 |
|
|
|
|
|
|
|
|
|
ANALYSIS OF BORROWINGS |
|
|
|
|
|
|
Borrowings mix: |
|
|
|
|
|
|
Term FHLB advances |
$ |
135,000 |
|
$ |
135,000 |
|
$ |
- |
|
$ |
- |
|
$ |
- |
|
|
Overnight FHLB advances |
|
- |
|
|
- |
|
|
415,000 |
|
|
335,000 |
|
|
400,000 |
|
|
Other short-term borrowings |
|
1,850 |
|
|
1,100 |
|
|
129,630 |
|
|
85,180 |
|
|
1,070 |
|
|
Subordinated notes |
|
232,852 |
|
|
232,746 |
|
|
232,662 |
|
|
232,743 |
|
|
133,562 |
|
|
Junior subordinated debentures |
|
48,666 |
|
|
48,634 |
|
|
48,602 |
|
|
48,568 |
|
|
48,534 |
|
|
Total borrowings |
$ |
418,368 |
|
$ |
417,480 |
|
$ |
825,894 |
|
$ |
701,491 |
|
$ |
583,166 |
|
|
|
|
|
|
|
|
|
(1) Loans with a fair value of $291.0 million, have been identified
for securitization and are included in LHFS at June 30, 2023. |
|
QCR Holding,
Inc. |
|
Consolidated
Financial Highlights |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
|
|
|
2023 |
|
2023 |
|
|
2022 |
|
|
2022 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
INCOME STATEMENT |
|
|
|
|
|
|
|
Interest
income |
|
$ |
98,377 |
$ |
94,217 |
|
$ |
94,037 |
|
$ |
79,267 |
$ |
68,205 |
|
Interest
expense |
|
|
45,172 |
|
37,407 |
|
|
28,819 |
|
|
18,498 |
|
8,805 |
|
Net interest
income |
|
|
53,205 |
|
56,810 |
|
|
65,218 |
|
|
60,769 |
|
59,400 |
|
Provision
for credit losses (1) |
|
|
3,606 |
|
3,928 |
|
|
- |
|
|
- |
|
11,200 |
|
Net
interest income after provision for credit losses |
|
$ |
49,599 |
$ |
52,882 |
|
$ |
65,218 |
|
$ |
60,769 |
$ |
48,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust
department fees |
|
$ |
2,844 |
$ |
2,906 |
|
$ |
2,644 |
|
$ |
2,537 |
$ |
2,497 |
|
Investment
advisory and management fees |
|
|
986 |
|
879 |
|
|
918 |
|
|
921 |
|
983 |
|
Deposit
service fees |
|
|
2,034 |
|
2,028 |
|
|
2,142 |
|
|
2,214 |
|
2,223 |
|
Gain on
sales of residential real estate loans |
|
|
500 |
|
312 |
|
|
468 |
|
|
641 |
|
809 |
|
Gain on
sales of government guaranteed portions of loans |
|
|
- |
|
30 |
|
|
50 |
|
|
50 |
|
- |
|
Capital
markets revenue |
|
|
22,490 |
|
17,023 |
|
|
11,338 |
|
|
10,545 |
|
13,004 |
|
Securities
gains (losses), net |
|
|
12 |
|
(463 |
) |
|
- |
|
|
- |
|
- |
|
Earnings on
bank-owned life insurance |
|
|
838 |
|
707 |
|
|
755 |
|
|
605 |
|
350 |
|
Debit card
fees |
|
|
1,589 |
|
1,466 |
|
|
1,500 |
|
|
1,453 |
|
1,499 |
|
Correspondent banking fees |
|
|
356 |
|
391 |
|
|
257 |
|
|
189 |
|
244 |
|
Loan related
fee income |
|
|
770 |
|
651 |
|
|
614 |
|
|
652 |
|
682 |
|
Fair value
gain (loss) on derivatives |
|
|
83 |
|
(427 |
) |
|
(267 |
) |
|
904 |
|
432 |
|
Other |
|
|
18 |
|
339 |
|
|
800 |
|
|
384 |
|
59 |
|
Total noninterest income |
|
$ |
32,520 |
$ |
25,842 |
|
$ |
21,219 |
|
$ |
21,095 |
$ |
22,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits |
|
$ |
31,459 |
$ |
32,003 |
|
$ |
32,594 |
|
$ |
29,175 |
$ |
29,972 |
|
Occupancy
and equipment expense |
|
|
6,100 |
|
5,914 |
|
|
6,027 |
|
|
6,033 |
|
5,978 |
|
Professional
and data processing fees |
|
|
4,078 |
|
3,514 |
|
|
3,769 |
|
|
4,477 |
|
4,365 |
|
Acquisition
costs |
|
|
- |
|
- |
|
|
(424 |
) |
|
315 |
|
1,973 |
|
Post-acquisition compensation, transition and integration
costs |
|
|
- |
|
207 |
|
|
668 |
|
|
62 |
|
4,796 |
|
FDIC
insurance, other insurance and regulatory fees |
|
|
1,927 |
|
1,374 |
|
|
1,605 |
|
|
1,497 |
|
1,394 |
|
Loan/lease
expense |
|
|
652 |
|
556 |
|
|
411 |
|
|
390 |
|
761 |
|
Net cost of
(income from) and gains/losses on operations of other real
estate |
|
|
- |
|
(67 |
) |
|
(117 |
) |
|
19 |
|
59 |
|
Advertising
and marketing |
|
|
1,735 |
|
1,237 |
|
|
1,562 |
|
|
1,437 |
|
1,198 |
|
Communication and data connectivity |
|
|
471 |
|
665 |
|
|
587 |
|
|
639 |
|
584 |
|
Supplies |
|
|
281 |
|
305 |
|
|
337 |
|
|
289 |
|
237 |
|
Bank service
charges |
|
|
621 |
|
605 |
|
|
563 |
|
|
568 |
|
610 |
|
Correspondent banking expense |
|
|
221 |
|
210 |
|
|
210 |
|
|
218 |
|
213 |
|
Intangibles
amortization |
|
|
765 |
|
766 |
|
|
787 |
|
|
787 |
|
787 |
|
Payment card
processing |
|
|
542 |
|
545 |
|
|
599 |
|
|
477 |
|
626 |
|
Trust
expense |
|
|
337 |
|
214 |
|
|
166 |
|
|
227 |
|
195 |
|
Other |
|
|
538 |
|
737 |
|
|
353 |
|
|
1,136 |
|
500 |
|
Total noninterest expense |
|
$ |
49,727 |
$ |
48,785 |
|
$ |
49,697 |
|
$ |
47,746 |
$ |
54,248 |
|
|
|
|
|
|
|
|
|
Net
income before income taxes |
|
$ |
32,392 |
$ |
29,939 |
|
$ |
36,740 |
|
$ |
34,118 |
$ |
16,734 |
|
Federal and
state income tax expense |
|
|
3,967 |
|
2,782 |
|
|
5,834 |
|
|
4,824 |
|
1,492 |
|
Net
income |
|
$ |
28,425 |
$ |
27,157 |
|
$ |
30,906 |
|
$ |
29,294 |
$ |
15,242 |
|
|
|
|
|
|
|
|
|
Basic EPS |
|
$ |
1.70 |
$ |
1.62 |
|
$ |
1.83 |
|
$ |
1.73 |
$ |
0.88 |
|
Diluted EPS |
|
$ |
1.69 |
$ |
1.60 |
|
$ |
1.81 |
|
$ |
1.71 |
$ |
0.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
|
16,701,950 |
|
16,776,289 |
|
|
16,855,973 |
|
|
16,900,968 |
|
17,345,324 |
|
Weighted
average common and common equivalent shares outstanding |
|
|
16,799,527 |
|
16,942,132 |
|
|
17,047,976 |
|
|
17,110,691 |
|
17,549,107 |
|
|
|
|
|
|
|
|
|
(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 Holding,
Inc. |
Consolidated
Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
|
(dollars in
thousands, except per share data) |
|
|
|
|
|
|
|
INCOME STATEMENT |
|
|
|
|
|
Interest
income |
|
$ |
192,594 |
|
|
$ |
119,267 |
|
Interest
expense |
|
|
82,579 |
|
|
|
14,134 |
|
Net interest
income |
|
|
110,015 |
|
|
|
105,133 |
|
Provision
for credit losses (1) |
|
|
7,534 |
|
|
|
8,284 |
|
Net
interest income after provision for loan/lease losses |
|
$ |
102,481 |
|
|
$ |
96,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Trust
department fees |
|
$ |
5,750 |
|
|
$ |
5,460 |
|
Investment
advisory and management fees |
|
|
1,865 |
|
|
|
2,019 |
|
Deposit
service fees |
|
|
4,062 |
|
|
|
3,778 |
|
Gain on
sales of residential real estate loans |
|
|
812 |
|
|
|
1,302 |
|
Gain on
sales of government guaranteed portions of loans |
|
|
30 |
|
|
|
19 |
|
Swap fee
income/capital markets revenue |
|
|
39,513 |
|
|
|
19,426 |
|
Securities
losses, net |
|
|
(451 |
) |
|
|
- |
|
Earnings on
bank-owned life insurance |
|
|
1,545 |
|
|
|
696 |
|
Debit card
fees |
|
|
3,055 |
|
|
|
2,506 |
|
Correspondent banking fees |
|
|
747 |
|
|
|
521 |
|
Loan related
fee income |
|
|
1,421 |
|
|
|
1,162 |
|
Fair value
gain (loss) on derivatives |
|
|
(344 |
) |
|
|
1,338 |
|
Other |
|
|
357 |
|
|
|
188 |
|
Total noninterest income |
|
$ |
58,362 |
|
|
$ |
38,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
employee benefits |
|
$ |
63,462 |
|
|
$ |
53,599 |
|
Occupancy
and equipment expense |
|
|
12,014 |
|
|
|
9,915 |
|
Professional
and data processing fees |
|
|
7,592 |
|
|
|
8,036 |
|
Acquisition
costs |
|
|
- |
|
|
|
3,824 |
|
Post-acquisition compensation, transition and integration
costs |
|
|
207 |
|
|
|
4,796 |
|
FDIC
insurance, other insurance and regulatory fees |
|
|
3,301 |
|
|
|
2,704 |
|
Loan/lease
expense |
|
|
1,208 |
|
|
|
1,028 |
|
Net cost of
(income from) and gains/losses on operations of other real
estate |
|
|
(67 |
) |
|
|
58 |
|
Advertising
and marketing |
|
|
2,972 |
|
|
|
1,959 |
|
Communication |
|
|
1,136 |
|
|
|
987 |
|
Supplies |
|
|
586 |
|
|
|
483 |
|
Bank service
charges |
|
|
1,226 |
|
|
|
1,151 |
|
Correspondent banking expense |
|
|
431 |
|
|
|
412 |
|
Intangibles
amortization |
|
|
1,531 |
|
|
|
1,280 |
|
Payment card
processing |
|
|
1,087 |
|
|
|
888 |
|
Trust
expense |
|
|
551 |
|
|
|
382 |
|
Other |
|
|
1,275 |
|
|
|
1,071 |
|
Total noninterest expense |
|
$ |
98,512 |
|
|
$ |
92,573 |
|
|
|
|
|
|
|
Net
income before income taxes |
|
$ |
62,331 |
|
|
$ |
42,691 |
|
Federal and
state income tax expense |
|
|
6,749 |
|
|
|
3,825 |
|
Net
income |
|
$ |
55,582 |
|
|
$ |
38,866 |
|
|
|
|
|
|
|
Basic EPS |
|
$ |
3.32 |
|
|
$ |
2.36 |
|
Diluted EPS |
|
$ |
3.29 |
|
|
$ |
2.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
|
16,739,120 |
|
|
|
16,485,218 |
|
Weighted
average common and common equivalent shares outstanding |
|
|
16,870,830 |
|
|
|
16,700,682 |
|
|
|
|
|
|
|
(1) Provision for credit losses for the six months 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 Holding, Inc. |
Consolidated Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
As of and for the Quarter Ended |
|
For the Six Months Ended |
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
June 30, |
June 30, |
|
2023 |
2023 |
2022 |
2022 |
2022 |
|
2023 |
2022 |
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
COMMON SHARE DATA |
|
|
|
|
|
|
|
|
Common shares outstanding |
|
16,713,853 |
|
|
16,713,775 |
|
|
16,795,942 |
|
|
16,885,485 |
|
|
17,064,347 |
|
|
|
|
Book value per common share (1) |
$ |
49.22 |
|
$ |
47.95 |
|
$ |
46.01 |
|
$ |
43.65 |
|
$ |
43.55 |
|
|
|
|
Tangible book value per common share (Non-GAAP) (2) |
$ |
39.99 |
|
$ |
38.71 |
|
$ |
36.82 |
|
$ |
34.46 |
|
$ |
34.41 |
|
|
|
|
Closing stock price |
$ |
41.03 |
|
$ |
43.91 |
|
$ |
49.64 |
|
$ |
50.94 |
|
$ |
53.99 |
|
|
|
|
Market capitalization |
$ |
685,769 |
|
$ |
733,902 |
|
$ |
833,751 |
|
$ |
860,147 |
|
$ |
921,304 |
|
|
|
|
Market price / book value |
|
83.36 |
% |
|
91.57 |
% |
|
107.90 |
% |
|
116.70 |
% |
|
123.97 |
% |
|
|
|
Market price / tangible book value |
|
102.59 |
% |
|
113.43 |
% |
|
134.83 |
% |
|
147.81 |
% |
|
156.90 |
% |
|
|
|
Earnings per common share (basic) LTM (3) |
$ |
6.89 |
|
$ |
6.06 |
|
$ |
5.95 |
|
$ |
5.86 |
|
$ |
6.14 |
|
|
|
|
Price earnings ratio LTM (3) |
|
5.96 x |
|
|
7.24 x |
|
|
8.35 x |
|
|
8.70 x |
|
|
8.79 x |
|
|
|
|
TCE / TA (Non-GAAP) (4) |
|
8.28 |
% |
|
8.21 |
% |
|
7.93 |
% |
|
7.68 |
% |
|
8.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS'
EQUITY |
|
|
|
|
Beginning balance |
$ |
801,494 |
|
$ |
772,724 |
|
$ |
737,072 |
|
$ |
743,138 |
|
$ |
667,924 |
|
|
|
|
Net income |
|
28,425 |
|
|
27,157 |
|
|
30,906 |
|
|
29,294 |
|
|
15,242 |
|
|
|
|
Other comprehensive income (loss), net of tax |
|
(6,336 |
) |
|
9,325 |
|
|
9,959 |
|
|
(24,783 |
) |
|
(24,286 |
) |
|
|
|
Common stock cash dividends declared |
|
(1,003 |
) |
|
(1,010 |
) |
|
(1,013 |
) |
|
(1,012 |
) |
|
(1,059 |
) |
|
|
|
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 |
|
(967 |
) |
|
(7,719 |
) |
|
(5,037 |
) |
|
(10,485 |
) |
|
(33,016 |
) |
|
|
|
Other (5) |
|
1,076 |
|
|
1,017 |
|
|
837 |
|
|
920 |
|
|
1,119 |
|
|
|
|
Ending balance |
$ |
822,689 |
|
$ |
801,494 |
|
$ |
772,724 |
|
$ |
737,072 |
|
$ |
743,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REGULATORY CAPITAL RATIOS (6): |
|
|
|
|
|
|
|
|
Total risk-based capital ratio |
|
14.66 |
% |
|
14.68 |
% |
|
14.28 |
% |
|
14.38 |
% |
|
13.40 |
% |
|
|
|
Tier 1 risk-based capital ratio |
|
10.36 |
% |
|
10.27 |
% |
|
9.95 |
% |
|
9.88 |
% |
|
10.18 |
% |
|
|
|
Tier 1 leverage capital ratio |
|
10.06 |
% |
|
9.73 |
% |
|
9.61 |
% |
|
9.56 |
% |
|
9.61 |
% |
|
|
|
Common equity tier 1 ratio |
|
9.71 |
% |
|
9.60 |
% |
|
9.29 |
% |
|
9.21 |
% |
|
9.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
KEY PERFORMANCE RATIOS AND OTHER METRICS |
|
|
|
|
|
|
|
|
Return on average assets (annualized) |
|
1.44 |
% |
|
1.37 |
% |
|
1.58 |
% |
|
1.53 |
% |
|
0.83 |
% |
|
|
1.42 |
% |
|
1.16 |
% |
Return on average total equity (annualized) |
|
13.97 |
% |
|
13.67 |
% |
|
16.32 |
% |
|
15.39 |
% |
|
7.74 |
% |
|
|
13.91 |
% |
|
10.55 |
% |
Net interest margin |
|
2.93 |
% |
|
3.18 |
% |
|
3.62 |
% |
|
3.46 |
% |
|
3.53 |
% |
|
|
3.05 |
% |
|
3.43 |
% |
Net interest margin (TEY) (Non-GAAP)(7) |
|
3.29 |
% |
|
3.52 |
% |
|
3.93 |
% |
|
3.71 |
% |
|
3.74 |
% |
|
|
3.40 |
% |
|
3.63 |
% |
Efficiency ratio (Non-GAAP) (8) |
|
58.01 |
% |
|
59.02 |
% |
|
57.50 |
% |
|
58.32 |
% |
|
66.01 |
% |
|
|
58.51 |
% |
|
64.49 |
% |
Gross loans and leases / total assets |
|
77.54 |
% |
|
77.02 |
% |
|
77.23 |
% |
|
77.73 |
% |
|
78.42 |
% |
|
|
77.54 |
% |
|
78.42 |
% |
Gross loans and leases / total deposits |
|
96.56 |
% |
|
95.21 |
% |
|
102.58 |
% |
|
101.14 |
% |
|
99.61 |
% |
|
|
96.56 |
% |
|
99.61 |
% |
Effective tax rate |
|
12.25 |
% |
|
9.29 |
% |
|
15.88 |
% |
|
14.14 |
% |
|
8.92 |
% |
|
|
10.83 |
% |
|
8.96 |
% |
Full-time equivalent employees (9) |
|
1009 |
|
|
969 |
|
|
973 |
|
|
956 |
|
|
968 |
|
|
|
1009 |
|
|
968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
Assets |
$ |
7,924,597 |
|
$ |
7,906,830 |
|
$ |
7,800,229 |
|
$ |
7,652,463 |
|
$ |
7,324,470 |
|
|
$ |
7,915,763 |
|
$ |
6,723,137 |
|
Loans/leases |
|
6,219,980 |
|
|
6,165,115 |
|
|
6,043,359 |
|
|
5,916,100 |
|
|
5,711,471 |
|
|
|
6,192,700 |
|
|
5,222,193 |
|
Deposits |
|
6,292,481 |
|
|
6,179,644 |
|
|
6,029,455 |
|
|
5,891,198 |
|
|
5,867,444 |
|
|
|
6,236,374 |
|
|
5,388,062 |
|
Total stockholders' equity |
|
816,882 |
|
|
794,685 |
|
|
757,419 |
|
|
761,428 |
|
|
788,204 |
|
|
|
805,845 |
|
|
736,452 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes accumulated other comprehensive income (loss). |
(2) Includes accumulated other comprehensive income (loss) and
excludes intangible assets. See GAAP to Non-GAAP
reconciliations. |
(3) LTM : Last twelve months. |
(4) TCE / TCA : tangible common equity / total tangible assets. See
GAAP to non-GAAP reconciliations. |
(5) Includes mostly common stock issued for options exercised and
the employee stock purchase plan, as well as stock-based
compensation. |
(6) Ratios for the current quarter are subject to change upon final
calculation for regulatory filings due after earnings release. |
(7) TEY : Tax equivalent yield. See GAAP to Non-GAAP
reconciliations. |
(8) See GAAP to Non-GAAP reconciliations. |
(9) The increase in full-time equivalent employees in the second
quarter of 2023 includes 19 summer interns. |
QCR Holding,
Inc. |
|
Consolidated
Financial Highlights |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF NET INTEREST INCOME AND MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
|
|
June 30, 2023 |
|
March 31, 2023 |
|
June 30, 2022 |
|
|
|
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 |
|
$ |
16,976 |
$ |
223 |
5.27 |
% |
|
$ |
19,275 |
$ |
234 |
4.93 |
% |
|
$ |
5,896 |
$ |
12 |
0.83 |
% |
|
Interest-bearing deposits at financial institutions |
|
90,814 |
|
1,123 |
4.96 |
% |
|
|
73,584 |
|
821 |
4.53 |
% |
|
|
67,254 |
|
169 |
1.01 |
% |
|
Investment securities - taxable |
|
342,991 |
|
3,693 |
4.30 |
% |
|
|
332,640 |
|
3,366 |
4.05 |
% |
|
|
346,440 |
|
3,090 |
3.56 |
% |
|
Investment securities - nontaxable (1) |
|
577,494 |
|
6,217 |
4.31 |
% |
|
|
619,225 |
|
6,791 |
4.39 |
% |
|
|
573,868 |
|
5,912 |
4.12 |
% |
|
Restricted investment securities |
|
35,031 |
|
506 |
5.71 |
% |
|
|
37,766 |
|
513 |
5.43 |
% |
|
|
37,166 |
|
485 |
5.16 |
% |
|
Loans
(1) |
|
|
6,219,980 |
|
93,159 |
6.01 |
% |
|
|
6,165,115 |
|
88,548 |
5.82 |
% |
|
|
5,711,471 |
|
61,932 |
4.35 |
% |
|
Total earning assets (1) |
$ |
7,283,286 |
$ |
104,921 |
5.78 |
% |
|
$ |
7,247,605 |
$ |
100,273 |
5.60 |
% |
|
$ |
6,742,095 |
$ |
71,600 |
4.26 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
3,965,592 |
$ |
27,227 |
2.75 |
% |
|
$ |
4,067,405 |
$ |
23,776 |
2.37 |
% |
|
$ |
3,791,595 |
$ |
4,478 |
0.47 |
% |
|
Time
deposits |
|
|
1,190,440 |
|
11,219 |
3.78 |
% |
|
|
869,912 |
|
6,003 |
2.80 |
% |
|
|
529,675 |
|
1,047 |
0.79 |
% |
|
Short-term borrowings |
|
1,980 |
|
34 |
6.82 |
% |
|
|
7,573 |
|
99 |
5.28 |
% |
|
|
1,404 |
|
3 |
0.78 |
% |
|
Federal Home Loan Bank advances |
|
211,593 |
|
2,653 |
4.96 |
% |
|
|
296,333 |
|
3,521 |
4.75 |
% |
|
|
286,484 |
|
780 |
1.08 |
% |
|
Subordinated debentures |
|
232,782 |
|
3,303 |
5.68 |
% |
|
|
232,679 |
|
3,311 |
5.69 |
% |
|
|
133,529 |
|
1,816 |
5.44 |
% |
|
Junior subordinated debentures |
|
48,647 |
|
738 |
6.00 |
% |
|
|
48,613 |
|
696 |
5.72 |
% |
|
|
46,536 |
|
680 |
5.78 |
% |
|
Total interest-bearing liabilities |
$ |
5,651,034 |
$ |
45,174 |
3.20 |
% |
|
$ |
5,522,515 |
$ |
37,406 |
2.74 |
% |
|
$ |
4,789,223 |
$ |
8,804 |
0.74 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (1) |
|
$ |
59,747 |
|
|
|
$ |
62,867 |
|
|
|
$ |
62,796 |
|
|
Net interest margin (2) |
|
|
2.93 |
% |
|
|
|
3.18 |
% |
|
|
|
3.53 |
% |
|
Net interest margin (TEY) (Non-GAAP) (1) (2) (3) |
|
|
3.29 |
% |
|
|
|
3.52 |
% |
|
|
|
3.74 |
% |
|
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) |
|
|
3.28 |
% |
|
|
|
3.47 |
% |
|
|
|
3.64 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months Ended |
|
|
|
|
|
|
|
June 30, 2023 |
|
June 30, 2022 |
|
|
|
|
|
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 |
|
$ |
18,119 |
$ |
457 |
5.09 |
% |
|
$ |
5,234 |
$ |
14 |
0.53 |
% |
|
|
|
|
|
Interest-bearing deposits at financial institutions |
|
82,246 |
|
1,945 |
4.77 |
% |
|
|
68,285 |
|
204 |
0.60 |
% |
|
|
|
|
|
Investment securities - taxable |
|
337,844 |
|
7,059 |
4.17 |
% |
|
|
861,610 |
|
16,683 |
3.87 |
% |
|
|
|
|
|
Investment securities - nontaxable (1) |
|
598,244 |
|
13,009 |
4.35 |
% |
|
|
|
|
|
|
|
|
|
Restricted investment securities |
|
36,391 |
|
1,018 |
5.56 |
% |
|
|
29,716 |
|
766 |
5.13 |
% |
|
|
|
|
|
Loans
(1) |
|
|
6,192,700 |
|
181,707 |
5.92 |
% |
|
|
5,222,193 |
|
107,927 |
4.17 |
% |
|
|
|
|
|
Total earning assets (1) |
$ |
7,265,544 |
$ |
205,195 |
5.69 |
% |
|
$ |
6,187,038 |
$ |
125,594 |
4.09 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
4,016,217 |
$ |
51,003 |
2.56 |
% |
|
$ |
3,511,396 |
$ |
6,816 |
0.39 |
% |
|
|
|
|
|
Time
deposits |
|
|
1,031,062 |
|
17,222 |
3.37 |
% |
|
|
464,647 |
|
1,846 |
0.80 |
% |
|
|
|
|
|
Short-term borrowings |
|
4,642 |
|
132 |
5.75 |
% |
|
|
1,676 |
|
3 |
0.36 |
% |
|
|
|
|
|
Federal Home Loan Bank advances |
|
253,729 |
|
6,174 |
4.84 |
% |
|
|
186,685 |
|
863 |
0.92 |
% |
|
|
|
|
|
Subordinated debentures |
|
232,731 |
|
6,615 |
5.68 |
% |
|
|
123,753 |
|
3,370 |
5.45 |
% |
|
|
|
|
|
Junior subordinated debentures |
|
48,630 |
|
1,433 |
5.86 |
% |
|
|
42,376 |
|
1,236 |
5.80 |
% |
|
|
|
|
|
Total interest-bearing liabilities |
$ |
5,587,011 |
$ |
82,579 |
2.97 |
% |
|
$ |
4,330,533 |
$ |
14,134 |
0.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (1) |
|
$ |
122,616 |
|
|
|
$ |
111,460 |
|
|
|
|
|
|
Net interest margin (2) |
|
|
3.05 |
% |
|
|
|
3.43 |
% |
|
|
|
|
|
Net interest margin (TEY) (Non-GAAP) (1) (2) (3) |
|
|
3.40 |
% |
|
|
|
3.63 |
% |
|
|
|
|
|
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) |
|
|
3.38 |
% |
|
|
|
3.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
nontaxable securities and loans. Interest earned and yields on
nontaxable securities and loans are determined on a tax equivalent
basis using a 21% tax rate. |
|
(2) See "Select
Financial Data - Subsidiaries" for a breakdown of
amortization/accretion included in net interest margin for each
period presented. |
|
(3) TEY : Tax
equivalent yield. See GAAP to Non-GAAP reconciliations. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QCR Holding, Inc. |
Consolidated Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
As of |
|
June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
|
2023 |
2023 |
2022 |
2022 |
2022 |
|
(dollars in thousands, except per share data) |
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON
LOANS/LEASES |
|
|
|
|
|
Beginning balance |
$ |
86,573 |
|
$ |
87,706 |
|
$ |
90,489 |
|
$ |
92,425 |
|
$ |
74,786 |
|
Initial ACL recorded for acquired PCD loans |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
5,902 |
|
Change in ACL for writedown of LHFS to fair value (1) |
|
(2,277 |
) |
|
(1,709 |
) |
|
- |
|
|
- |
|
|
- |
|
Credit loss expense (2) |
|
3,313 |
|
|
2,458 |
|
|
1,013 |
|
|
331 |
|
|
12,141 |
|
Loans/leases charged off |
|
(1,947 |
) |
|
(2,275 |
) |
|
(3,960 |
) |
|
(2,489 |
) |
|
(620 |
) |
Recoveries on loans/leases previously charged off |
|
135 |
|
|
393 |
|
|
164 |
|
|
222 |
|
|
216 |
|
Ending balance |
$ |
85,797 |
|
$ |
86,573 |
|
$ |
87,706 |
|
$ |
90,489 |
|
$ |
92,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NONPERFORMING ASSETS |
|
|
|
|
|
Nonaccrual loans/leases |
$ |
26,062 |
|
$ |
22,947 |
|
$ |
8,765 |
|
$ |
17,511 |
|
$ |
23,574 |
|
Accruing loans/leases past due 90 days or more |
|
83 |
|
|
15 |
|
|
5 |
|
|
3 |
|
|
268 |
|
Total nonperforming loans/leases |
|
26,145 |
|
|
22,962 |
|
|
8,770 |
|
|
17,514 |
|
|
23,842 |
|
Other real estate owned |
|
- |
|
|
61 |
|
|
133 |
|
|
177 |
|
|
205 |
|
Other repossessed assets |
|
- |
|
|
- |
|
|
- |
|
|
340 |
|
|
- |
|
Total nonperforming assets |
$ |
26,145 |
|
$ |
23,023 |
|
$ |
8,903 |
|
$ |
18,031 |
|
$ |
24,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY RATIOS |
|
|
|
|
|
Nonperforming assets / total assets |
|
0.32 |
% |
|
0.29 |
% |
|
0.11 |
% |
|
0.23 |
% |
|
0.33 |
% |
ACL for loans and leases / total loans/leases held for
investment |
|
1.41 |
% |
|
1.43 |
% |
|
1.43 |
% |
|
1.51 |
% |
|
1.59 |
% |
ACL for loans and leases / nonperforming loans/leases |
|
328.16 |
% |
|
377.03 |
% |
|
1000.07 |
% |
|
516.67 |
% |
|
387.66 |
% |
Net charge-offs as a % of average loans/leases |
|
0.03 |
% |
|
0.03 |
% |
|
0.06 |
% |
|
0.04 |
% |
|
0.01 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
INTERNALLY ASSIGNED RISK RATING (3) |
|
|
|
|
|
Special mention (rating 6) |
$ |
116,910 |
|
$ |
125,048 |
|
$ |
98,333 |
|
$ |
63,973 |
|
$ |
54,558 |
|
Substandard (rating 7)/Classified loans |
|
63,956 |
|
|
70,866 |
|
|
66,021 |
|
|
77,317 |
|
|
83,048 |
|
Doubtful (rating 8)/Classified loans |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Criticized loans (4) |
$ |
180,866 |
|
$ |
195,914 |
|
$ |
164,354 |
|
$ |
141,290 |
|
$ |
137,606 |
|
|
|
|
|
|
|
Classified loans as a % of total loans/leases |
|
1.00 |
% |
|
1.14 |
% |
|
1.08 |
% |
|
1.29 |
% |
|
1.43 |
% |
Criticized loans as a % of total loans/leases |
|
2.84 |
% |
|
3.16 |
% |
|
2.68 |
% |
|
2.35 |
% |
|
2.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Certain loans
were identified for securitization and transferred from loans to
LHFS. The fair value of the loans was less than its carrying value
at the date of transfer, resulting in a charge to the loan
ACL. |
(2) 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. |
(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 Holding, Inc. |
Consolidated Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
For the Six Months Ended |
|
|
|
June 30, |
|
March 31, |
|
June 30, |
|
June 30, |
|
June 30, |
|
SELECT FINANCIAL DATA - SUBSIDIARIES |
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
$ |
2,611,832 |
|
|
$ |
2,548,473 |
|
|
$ |
2,122,852 |
|
|
|
|
|
|
m2 Equipment Finance, LLC |
|
|
322,838 |
|
|
|
317,497 |
|
|
|
289,451 |
|
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
|
2,389,623 |
|
|
|
2,196,560 |
|
|
|
1,985,199 |
|
|
|
|
|
|
Community State Bank |
|
|
1,332,966 |
|
|
|
1,286,227 |
|
|
|
1,221,406 |
|
|
|
|
|
|
Guaranty Bank |
|
|
2,179,844 |
|
|
|
2,147,776 |
|
|
|
2,037,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL DEPOSITS |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
$ |
2,166,249 |
|
|
$ |
2,173,343 |
|
|
$ |
1,787,564 |
|
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
|
1,791,861 |
|
|
|
1,663,138 |
|
|
|
1,495,665 |
|
|
|
|
|
|
Community State Bank |
|
|
1,073,907 |
|
|
|
1,086,531 |
|
|
|
1,006,836 |
|
|
|
|
|
|
Guaranty Bank |
|
|
1,653,299 |
|
|
|
1,646,730 |
|
|
|
1,539,978 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LOANS & LEASES |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
$ |
1,925,162 |
|
|
$ |
1,872,029 |
|
|
$ |
1,737,812 |
|
|
|
|
|
|
m2 Equipment Finance, LLC |
|
|
328,479 |
|
|
|
321,495 |
|
|
|
293,435 |
|
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
|
1,728,280 |
|
|
|
1,637,252 |
|
|
|
1,536,224 |
|
|
|
|
|
|
Community State Bank |
|
|
1,025,844 |
|
|
|
994,454 |
|
|
|
931,031 |
|
|
|
|
|
|
Guaranty Bank |
|
|
1,700,034 |
|
|
|
1,686,287 |
|
|
|
1,592,836 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LOANS & LEASES / TOTAL DEPOSITS |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
|
89 |
% |
|
|
86 |
% |
|
|
97 |
% |
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
|
96 |
% |
|
|
98 |
% |
|
|
103 |
% |
|
|
|
|
|
Community State Bank |
|
|
96 |
% |
|
|
92 |
% |
|
|
92 |
% |
|
|
|
|
|
Guaranty Bank |
|
|
103 |
% |
|
|
102 |
% |
|
|
103 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LOANS & LEASES / TOTAL ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
|
74 |
% |
|
|
73 |
% |
|
|
82 |
% |
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
|
72 |
% |
|
|
75 |
% |
|
|
77 |
% |
|
|
|
|
|
Community State Bank |
|
|
77 |
% |
|
|
77 |
% |
|
|
76 |
% |
|
|
|
|
|
Guaranty Bank |
|
|
78 |
% |
|
|
79 |
% |
|
|
78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL ON LOANS/LEASES AS A PERCENTAGE OF
LOANS/LEASES |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
|
1.44 |
% |
|
|
1.41 |
% |
|
|
1.68 |
% |
|
|
|
|
|
m2 Equipment Finance, LLC |
|
|
3.46 |
% |
|
|
3.13 |
% |
|
|
3.31 |
% |
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
|
1.41 |
% |
|
|
1.50 |
% |
|
|
1.58 |
% |
|
|
|
|
|
Community State Bank |
|
|
1.27 |
% |
|
|
1.38 |
% |
|
|
1.57 |
% |
|
|
|
|
|
Guaranty Bank |
|
|
1.22 |
% |
|
|
1.29 |
% |
|
|
1.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETURN ON AVERAGE ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
|
0.82 |
% |
|
|
1.23 |
% |
|
|
1.56 |
% |
|
|
1.02 |
% |
|
|
1.71 |
% |
|
Cedar Rapids Bank and Trust |
|
|
3.52 |
% |
|
|
3.07 |
% |
|
|
2.72 |
% |
|
|
3.30 |
% |
|
|
2.48 |
% |
|
Community State Bank |
|
|
1.42 |
% |
|
|
1.49 |
% |
|
|
1.12 |
% |
|
|
1.46 |
% |
|
|
1.27 |
% |
|
Guaranty Bank (7) (8) |
|
|
0.97 |
% |
|
|
1.02 |
% |
|
|
0.20 |
% |
|
|
0.99 |
% |
|
|
0.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN PERCENTAGE (2) |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
|
3.28 |
% |
|
|
3.44 |
% |
|
|
3.74 |
% |
|
|
3.36 |
% |
|
|
3.62 |
% |
|
Cedar Rapids Bank and Trust (3) |
|
|
3.69 |
% |
|
|
4.03 |
% |
|
|
3.66 |
% |
|
|
3.86 |
% |
|
|
3.63 |
% |
|
Community State Bank (4) |
|
|
3.90 |
% |
|
|
3.99 |
% |
|
|
3.67 |
% |
|
|
3.94 |
% |
|
|
3.65 |
% |
|
Guaranty Bank (5) |
|
|
3.10 |
% |
|
|
3.49 |
% |
|
|
4.20 |
% |
|
|
3.30 |
% |
|
|
3.94 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN
NET |
|
|
|
|
|
|
|
|
|
INTEREST MARGIN, NET |
|
|
|
|
|
|
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
$ |
- |
|
|
$ |
(8 |
) |
|
$ |
4 |
|
|
$ |
(8 |
) |
|
$ |
55 |
|
|
Community State Bank |
|
|
(1 |
) |
|
|
71 |
|
|
|
28 |
|
|
$ |
70 |
|
|
|
61 |
|
|
Guaranty Bank |
|
|
168 |
|
|
|
797 |
|
|
|
1,698 |
|
|
$ |
965 |
|
|
|
1,767 |
|
|
QCR Holdings, Inc. (6) |
|
|
(33 |
) |
|
|
(32 |
) |
|
|
(35 |
) |
|
$ |
(65 |
) |
|
|
(70 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Quad City Bank and Trust amounts include m2 Equipment Finance, LLC,
as this entity is wholly-owned and consolidated with the Bank. m2
Equipment Finance, LLC is also presented separately for
certain (applicable) measurements. |
(2) |
Includes nontaxable securities and loans. Interest earned and
yields on nontaxable securities and loans are determined on a tax
equivalent basis using a 21% federal tax rate.
|
(3) |
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
3.69% for the quarter ended June 30, 2023, 4.03% for the quarter
ended March 31, 2023 and 3.62% for the quarter ended June 30,
2022. |
(4) |
Community State Bank's net interest margin percentage includes
various purchase accounting adjustments. Excluding those
adjustments, net interest margin (Non-GAAP) would have been
3.90% for the quarter ended June 30, 2023, 3.99% for the quarter
ended March 31, 2023 and 3.66% for the quarter ended June 30,
2022. |
(5) |
Guaranty Bank's net interest margin percentage includes various
purchase accounting adjustments. Excluding those adjustments, net
interest margin (Non-GAAP) would have been 3.11% for the
quarter ended June 30, 2023, 3.39% for the quarter ended March 31,
2023 and 3.82% for the quarter ended June 30,
2022. |
(6) |
Relates to the trust preferred securities acquired as part of the
Guaranty Bank acquisition in 2017 and the Community National Bank
acquisition in 2013. |
(7) |
Decrease for quarter ended and six months ended June 30, 2022 due
to CECL Day 2 provision for credit losses of $12.4 million related
to the acquisition of Guaranty Bank. |
(8) |
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 1.89% for the six months ended June 30,
2022. |
QCR Holding,
Inc. |
Consolidated
Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
June
30, |
|
March
31, |
|
December
31, |
|
September
30, |
|
June
30, |
|
GAAP TO NON-GAAP RECONCILIATIONS |
|
2023 |
|
2023 |
|
2022 |
|
2022 |
|
2022 |
|
|
|
(dollars in
thousands, except per share data) |
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (GAAP) |
|
$ |
822,689 |
|
|
$ |
801,494 |
|
|
$ |
772,724 |
|
|
$ |
737,072 |
|
|
$ |
743,138 |
|
|
Less: Intangible assets |
|
|
154,255 |
|
|
|
154,467 |
|
|
|
154,366 |
|
|
|
155,153 |
|
|
|
155,940 |
|
|
Tangible common equity (non-GAAP) |
|
$ |
668,434 |
|
|
$ |
647,027 |
|
|
$ |
618,358 |
|
|
$ |
581,919 |
|
|
$ |
587,198 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP) |
|
$ |
8,226,673 |
|
|
$ |
8,036,904 |
|
|
$ |
7,948,837 |
|
|
$ |
7,730,049 |
|
|
$ |
7,392,941 |
|
|
Less: Intangible assets |
|
|
154,255 |
|
|
|
154,467 |
|
|
|
154,366 |
|
|
|
155,153 |
|
|
|
155,940 |
|
|
Tangible assets (non-GAAP) |
|
$ |
8,072,418 |
|
|
$ |
7,882,437 |
|
|
$ |
7,794,471 |
|
|
$ |
7,574,896 |
|
|
$ |
7,237,001 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets ratio
(non-GAAP) |
|
8.28 |
% |
|
|
8.21 |
% |
|
|
7.93 |
% |
|
|
7.68 |
% |
|
|
8.11 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Six Months Ended |
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
ADJUSTED NET INCOME (1) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
28,425 |
|
|
$ |
27,157 |
|
|
$ |
30,906 |
|
|
$ |
29,294 |
|
|
$ |
15,242 |
|
|
$ |
55,582 |
|
|
$ |
38,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less non-core items (post-tax) (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities gains (losses), net |
|
|
9 |
|
|
|
(366 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(356 |
) |
|
|
- |
|
|
Fair value gain (loss) on derivatives, net |
|
|
66 |
|
|
|
(337 |
) |
|
|
(211 |
) |
|
|
714 |
|
|
|
342 |
|
|
|
(272 |
) |
|
|
1,057 |
|
|
Total non-core income (non-GAAP) |
|
$ |
75 |
|
|
$ |
(703 |
) |
|
$ |
(211 |
) |
|
$ |
714 |
|
|
$ |
342 |
|
|
$ |
(628 |
) |
|
$ |
1,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs (2) |
|
|
- |
|
|
|
- |
|
|
|
(517 |
) |
|
|
321 |
|
|
|
1,932 |
|
|
|
- |
|
|
|
3,394 |
|
|
Post-acquisition compensation, transition and integration
costs |
|
|
- |
|
|
|
164 |
|
|
|
529 |
|
|
|
48 |
|
|
|
3,789 |
|
|
|
164 |
|
|
|
3,789 |
|
|
Separation agreement |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
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 |
|
|
Total non-core expense (non-GAAP) |
|
$ |
- |
|
|
$ |
164 |
|
|
$ |
12 |
|
|
$ |
369 |
|
|
$ |
15,512 |
|
|
$ |
164 |
|
|
$ |
16,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (non-GAAP) (1) |
|
$ |
28,350 |
|
|
$ |
28,024 |
|
|
$ |
31,129 |
|
|
$ |
28,949 |
|
|
$ |
30,412 |
|
|
$ |
56,374 |
|
|
$ |
54,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS PER COMMON SHARE (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income (non-GAAP) (from above) |
|
$ |
28,350 |
|
|
$ |
28,024 |
|
|
$ |
31,129 |
|
|
$ |
28,949 |
|
|
$ |
30,412 |
|
|
$ |
56,374 |
|
|
$ |
54,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
|
16,701,950 |
|
|
|
16,776,289 |
|
|
|
16,855,973 |
|
|
|
16,900,968 |
|
|
|
17,345,324 |
|
|
|
16,739,120 |
|
|
|
16,485,218 |
|
|
Weighted
average common and common equivalent shares outstanding |
|
|
16,799,527 |
|
|
|
16,942,132 |
|
|
|
17,047,976 |
|
|
|
17,110,691 |
|
|
|
17,549,107 |
|
|
|
16,870,830 |
|
|
|
16,700,682 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per common share
(non-GAAP): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.70 |
|
|
$ |
1.67 |
|
|
$ |
1.85 |
|
|
$ |
1.71 |
|
|
$ |
1.75 |
|
|
$ |
3.37 |
|
|
$ |
3.32 |
|
|
Diluted |
|
$ |
1.69 |
|
|
$ |
1.65 |
|
|
$ |
1.83 |
|
|
$ |
1.69 |
|
|
$ |
1.73 |
|
|
$ |
3.34 |
|
|
$ |
3.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net
income (non-GAAP) (from above) |
|
$ |
28,350 |
|
|
$ |
28,024 |
|
|
$ |
31,129 |
|
|
$ |
28,949 |
|
|
$ |
30,412 |
|
|
$ |
56,374 |
|
|
$ |
54,783 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
Assets |
|
$ |
7,924,597 |
|
|
$ |
7,906,830 |
|
|
$ |
7,800,229 |
|
|
$ |
7,652,463 |
|
|
$ |
7,324,470 |
|
|
$ |
7,915,763 |
|
|
$ |
6,723,137 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted return on average assets (annualized)
(non-GAAP) |
|
|
1.43 |
% |
|
|
1.42 |
% |
|
|
1.60 |
% |
|
|
1.51 |
% |
|
|
1.66 |
% |
|
|
1.42 |
% |
|
|
1.63 |
% |
|
Adjusted return on average equity (annualized)
(non-GAAP) |
|
|
13.88 |
% |
|
|
14.11 |
% |
|
|
16.44 |
% |
|
|
15.21 |
% |
|
|
15.43 |
% |
|
|
13.99 |
% |
|
|
14.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN (TEY) (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (GAAP) |
|
$ |
53,205 |
|
|
$ |
56,810 |
|
|
$ |
65,218 |
|
|
$ |
60,769 |
|
|
$ |
59,400 |
|
|
$ |
110,015 |
|
|
$ |
105,133 |
|
|
Plus: Tax equivalent adjustment (5) |
|
|
6,542 |
|
|
|
6,057 |
|
|
|
5,554 |
|
|
|
4,459 |
|
|
|
3,396 |
|
|
|
12,601 |
|
|
|
6,327 |
|
|
Net interest
income - tax equivalent (Non-GAAP) |
|
$ |
59,747 |
|
|
$ |
62,867 |
|
|
$ |
70,772 |
|
|
$ |
65,228 |
|
|
$ |
62,796 |
|
|
$ |
122,616 |
|
|
$ |
111,460 |
|
|
Less: Acquisition accounting net accretion |
|
|
134 |
|
|
|
828 |
|
|
|
5,688 |
|
|
|
1,080 |
|
|
|
1,695 |
|
|
|
962 |
|
|
|
1,813 |
|
|
Adjusted net
interest income |
|
$ |
59,613 |
|
|
$ |
62,039 |
|
|
$ |
65,084 |
|
|
$ |
64,148 |
|
|
$ |
61,101 |
|
|
$ |
121,654 |
|
|
$ |
109,647 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
earning assets |
|
$ |
7,283,286 |
|
|
$ |
7,247,605 |
|
|
$ |
7,148,578 |
|
|
$ |
6,975,857 |
|
|
$ |
6,742,095 |
|
|
$ |
7,265,544 |
|
|
$ |
6,187,038 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
interest margin (GAAP) |
|
|
2.93 |
% |
|
|
3.18 |
% |
|
|
3.62 |
% |
|
|
3.46 |
% |
|
|
3.53 |
% |
|
|
3.05 |
% |
|
|
3.43 |
% |
|
Net
interest margin (TEY) (Non-GAAP) |
|
|
3.29 |
% |
|
|
3.52 |
% |
|
|
3.93 |
% |
|
|
3.71 |
% |
|
|
3.74 |
% |
|
|
3.40 |
% |
|
|
3.63 |
% |
|
Adjusted net interest margin (TEY) (Non-GAAP) |
|
|
3.28 |
% |
|
|
3.47 |
% |
|
|
3.61 |
% |
|
|
3.65 |
% |
|
|
3.64 |
% |
|
|
3.38 |
% |
|
|
3.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFICIENCY RATIO (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest
expense (GAAP) |
|
$ |
49,727 |
|
|
$ |
48,785 |
|
|
$ |
49,697 |
|
|
$ |
47,746 |
|
|
$ |
54,248 |
|
|
$ |
98,512 |
|
|
$ |
92,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income (GAAP) |
|
$ |
53,205 |
|
|
$ |
56,810 |
|
|
$ |
65,218 |
|
|
$ |
60,769 |
|
|
$ |
59,400 |
|
|
$ |
110,015 |
|
|
$ |
105,133 |
|
|
Noninterest
income (GAAP) |
|
|
32,520 |
|
|
|
25,842 |
|
|
|
21,219 |
|
|
|
21,095 |
|
|
|
22,782 |
|
|
|
58,362 |
|
|
|
38,415 |
|
|
Total income |
|
$ |
85,725 |
|
|
$ |
82,652 |
|
|
$ |
86,437 |
|
|
$ |
81,864 |
|
|
$ |
82,182 |
|
|
$ |
168,377 |
|
|
$ |
143,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (noninterest expense/total income)
(Non-GAAP) |
|
|
58.01 |
% |
|
|
59.02 |
% |
|
|
57.50 |
% |
|
|
58.32 |
% |
|
|
66.01 |
% |
|
|
58.51 |
% |
|
|
64.49 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted net income, adjusted earnings per
common share, adjusted return on average assets and average equity
are non-GAAP financial measures. The Company's management believes
that these measurements are important to investors as they
exclude non-core or non-recurring income and expense items,
therefore, they provide a more realistic run-rate for future
periods. |
|
In compliance with applicable rules of the SEC,
these non-GAAP measures are reconciled to net income, which is the
most directly comparable GAAP financial measure. |
|
(2) Non-core or nonrecurring items (post-tax) are
calculated using an estimated effective federal tax rate of 21%
with the exception of acquisition costs which have an estimated
effective federal tax rate of 13.62%. |
|
(3) The CECL Day 2 provision for credit losses on
acquired non-PCD loans and OBS exposures resulted from the Guaranty
Bank acquisition on April 1, 2022. |
|
(4) Interest earned and yields on nontaxable
securities and loans are determined on a tax equivalent basis using
a 21% effective federal tax rate. |
|
(5) Net interest margin (TEY) is a non-GAAP
financial measure. The Company's management utilizes this
measurement to take into account the tax benefit associated with
certain loans and securities. It is also standard industry
practice to measure net interest margin using tax-equivalent
measures. In compliance with applicable rules of the SEC, this
non-GAAP measure is reconciled to net interest income, which
is the most directly comparable GAAP financial measure. In
addition, the Company calculates net interest margin without
the impact of acquisition accounting net accretion as this can
fluctuate and it's difficult to provide a more realistic run-rate
for future periods. |
|
(6) Efficiency ratio is a non-GAAP measure. The
Company's management utilizes this ratio to compare to industry
peers. The ratio is used to calculate overhead as a percentage of
revenue. In compliance with the applicable rules of the SEC,
this non-GAAP measure is reconciled to noninterest expense, net
interest income and noninterest income, which are the
most directly comparable GAAP financial measures. |
|
Grafico Azioni QCR (NASDAQ:QCRH)
Storico
Da Apr 2024 a Mag 2024
Grafico Azioni QCR (NASDAQ:QCRH)
Storico
Da Mag 2023 a Mag 2024