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): July 24, 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 July 24, 2024, QCR Holdings, Inc. (the “Company”) issued a press release disclosing financial results for the quarter ended June 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 July 24, 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: July 24, 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 $29.1 Million

for the Second Quarter of 2024

 

Second Quarter 2024 Highlights

 

·

Net income of $29.1 million, or $1.72 per diluted share

·

Net interest income up $1.5 million, or nearly 3% from the prior quarter, an 11% annualized growth rate

·

Adjusted NIM (TEY)(non-GAAP) expanded by 2 basis points from the prior quarter

·

Noninterest income up $4.0 million, or 15% from the prior quarter

·

Continued strong capital markets revenue of $17.8 million

·

Well-controlled noninterest expenses of $49.9 million, down $0.8 million, or nearly 2% from the prior quarter

·

Tangible book value (non-GAAP) per share growth of $1.72, or 15% annualized

 

Moline, IL, July 24, 2024 – QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $29.1 million and diluted earnings per share (“EPS”) of $1.72 for the second quarter of 2024, compared to net income of $26.7 million and diluted EPS of $1.58 for the first quarter of 2024.

 

Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the second quarter of 2024 were $29.3 million and $1.73, respectively. For the first quarter of 2024, adjusted net income (non-GAAP) was $26.9 million and adjusted diluted EPS (non-GAAP) was $1.59. For the second quarter of 2023, both net income and adjusted net income (non-GAAP) were $28.4 million, and both diluted EPS and adjusted diluted EPS (non-GAAP) were $1.69.

 

		For the Quarter Ended
		June 30,				March 31,				June 30,
$ in millions (except per share data)		2024				2024				2023
Net Income		$	29.1			$	26.7			$	28.4
Diluted EPS		$	1.72			$	1.58			$	1.69
Adjusted Net Income (non-GAAP)*		$	29.3			$	26.9			$	28.4
Adjusted Diluted EPS (non-GAAP)*		$	1.73			$	1.59			$	1.69

 

*Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.

 

“We delivered outstanding second quarter results, highlighted by expanded net interest margin and growth in net interest income. We also had another quarter of strong capital markets revenue and well-controlled expenses,” said Larry J. Helling, Chief Executive Officer. “In addition, we maintained our excellent asset quality and further strengthened our capital levels.”

 

Net Interest Income Grew 3% and Margin Expanded

 

Net interest income for the second quarter of 2024 totaled $56.2 million, an increase of $1.5 million from the first quarter of 2024, driven by an expanded margin and strong loan growth. Loan discount accretion was $268 thousand during the second quarter, a decrease of $95 thousand from the prior quarter.

 

 

Net interest margin (“NIM”) was 2.82% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP) was 3.27% for the second quarter, as compared to 2.82% and 3.25% for the prior quarter, respectively. Adjusted NIM TEY (non-GAAP) of 3.26%, represented an increase of 2 basis points from 3.24% for the first quarter of 2024.

 

“Our adjusted NIM, on a tax equivalent yield basis, expanded by 2 basis points from the first quarter to 3.26% and was at the upper end of our guidance range,” said Todd A. Gipple, President and Chief Financial Officer. “The increase was due to a combination of higher loan yields and moderating deposit costs. Notably, the shift in our deposit composition has stabilized as our noninterest-bearing deposits remained steady combined with modest changes in our interest-bearing and core time deposits. Looking ahead, we anticipate further growth in net interest income and are guiding to a third quarter adjusted NIM TEY (non-GAAP) in a range of static to up 5 basis points.”

 

Strong Noninterest Income Including $17.8 Million of Capital Markets Revenue

 

Noninterest income for the second quarter of 2024 totaled $30.9 million, up from $26.9 million in the first quarter of 2024. The Company generated $17.8 million of capital markets revenue in the quarter, as compared to $16.5 million in the prior quarter. Wealth management revenue was $4.3 million for the quarter, a slight increase from the first quarter of 2024 and up just over 26% on an annualized basis year-to-date. Additionally, the Company realized income of $2.2 million from bank owned life insurance policy proceeds received during the second quarter of 2024.

 

“Our capital markets revenue was strong again in the second quarter as our low-income housing tax credit (“LIHTC”) lending and revenue from swap fees continues to benefit from the strong demand for affordable housing,” added Mr. Gipple. “Our LIHTC lending and capital markets revenue pipelines remain healthy. In addition, our wealth management business is wellpositioned for further growth as we continue to add new clients and expand geographically into our Southwest Missouri and Central Iowa markets.”

  

Well-Controlled Noninterest Expenses of $49.9 Million

 

Noninterest expense for the second quarter of 2024 totaled $49.9 million, compared to $50.7 million for the first quarter and $49.7 million for the second quarter of 2023. The linked-quarter decrease was primarily due to lower salaries and employee benefits and lower loan/lease expense, partially offset by higher professional and data processing expense. This created positive operating leverage and contributed to a 500 basis point reduction in the Company’s efficiency ratio (non-GAAP) which improved to 57% in the second quarter.

 

Solid Deposit Levels

 

During the second quarter of 2024, the Company’s total deposits decreased modestly by $42.1 million, or less than 1%, to $6.8 billion. “Year-to-date, we have grown total deposits by $250.7 million, or 7.7% on an annualized basis, reflecting our ongoing commitment to expanding our market share and establishing new relationships within the communities we serve,” added Mr. Helling.

 

Total uninsured and uncollateralized deposits remain very low at 18% of total deposits as of the end of the second quarter of 2024, as compared to 20% as of the end of the first quarter of 2024. The Company maintained approximately $3.1 billion of available liquidity sources as of June 30, 2024, which included $1.2 billion of immediately available liquidity.

 

Continued Loan Growth

 

During the second quarter of 2024, the Company’s total loans and leases grew $206.1 million to $6.9 billion. At quarter end, the Company held $243.2 million of LIHTC loans as loans held for sale in anticipation of the Company’s next loan securitization.

 

“Our year-to-date total loan growth is 9.5% annualized, which is within our annual target range of 8% to 10%. Year-to-date loan growth, net of loans identified for securitization, stands at 2.1% annualized,” added Mr. Helling. “Given our current pipeline and the ongoing strength of our markets, we are maintaining our loan growth target for the full year 2024 of 8% to 10%, prior to the loan securitizations that we have planned for the year.”

 

 

Asset Quality Remains Excellent

 

The Company’s nonperforming assets (“NPAs”) to total assets ratio was 0.39% on June 30, 2024, increasing modestly from 0.36% on March 31, 2024. NPAs totaled $34.5 million at the end of the second quarter of 2024, a $3.2 million increase from the prior quarter.

 

Notably, as a leading indicator of asset quality, the Company's total criticized loans were down by $17.1 million on a linked-quarter basis, and the ratio of criticized loans to total loans and leases as of June 30, 2024 improved to 2.41%, as compared to 2.75% as of March 31, 2024.

 

The Company recorded a total provision for credit losses of $5.5 million during the quarter with $4.3 million related to credit loss expense for loans and $1.2 million related to unfunded commitments. Charge-offs were down significantly in the second quarter of 2024 at $1.8 million, a decrease of $1.8 million, or 50% from the prior quarter.

 

The increased provision during the quarter was due to strong loan growth and the impact of declining GDP on the Company’s CECL model factors. The increased provision combined with the sharp reduction in charge-offs resulted in an allowance for credit losses to total loans held for investment that was static quarter over quarter at 1.33%.

 

Continued Strong Capital Levels

 

As of June 30, 2024, the Company’s total risk-based capital ratio increased to 14.33%, the common equity tier 1 ratio increased to 10.00% and the tangible common equity to tangible assets ratio (“TCE”) (non-GAAP) increased to 9.00%. By comparison, these ratios were 14.30%, 9.91% and 8.94%, respectively, as of March 31, 2024. The Company remains focused on growing 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 by $1.72, or 15.3% annualized, during the second quarter of 2024. The change in accumulated other comprehensive income was negligible as of the end of the second quarter when comparing to the prior quarter of 2024. Tangible book value per share has grown by $6.66 since June 30, 2023, for an annualized growth rate of nearly 17%. The combination of strong earnings and a modest dividend primarily contributed to the improvement in tangible book value per share (non-GAAP).

 

Conference Call Details

 

The Company will host an earnings call/webcast tomorrow, July 25, 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 August 1, 2024. The replay access information is 877-344-7529 (international 412-317-0088); access code 8771212. 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. Quad City Bank & Trust Company offers equipment loans and leases to businesses through its wholly owned subsidiary, m2 Equipment Finance, LLC, based in Waukesha, Wisconsin, and also provides correspondent banking services. The Company has 36 locations in Iowa, Missouri, Wisconsin and Illinois. As of June 30, 2024, the Company had $8.9 billion in assets, $6.9 billion in loans and $6.8 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 Israeli-Palestinian conflict and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the 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 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, 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

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,
		2024				2024				2023				2023				2023
		(dollars in thousands)
CONDENSED BALANCE SHEET
Cash and due from banks		$	92,173			$	80,988			$	97,123			$	104,265			$	84,084
Federal funds sold and interest-bearing deposits			102,262				77,020				140,369				80,650				175,012
Securities, net of allowance for credit losses			1,033,199				1,031,861				1,005,528				896,394				882,888
Loans receivable held for sale (1)			246,124				275,344				2,594				278,893				295,057
Loans/leases receivable held for investment			6,608,262				6,372,992				6,540,822				6,327,414				6,084,263
Allowance for credit losses			(87,706	)			(84,470	)			(87,200	)			(87,669	)			(85,797	)
Intangibles			12,441				13,131				13,821				14,537				15,228
Goodwill			139,027				139,027				139,027				139,027				139,027
Derivatives			194,354				183,888				188,978				291,295				170,294
Other assets			531,855				509,768				497,832				495,251				466,617
Total assets		$	8,871,991			$	8,599,549			$	8,538,894			$	8,540,057			$	8,226,673
Total deposits		$	6,764,667			$	6,806,775			$	6,514,005			$	6,494,852			$	6,606,720
Total borrowings			768,671				489,633				718,295				712,126				418,368
Derivatives			221,798				211,677				214,098				320,220				195,841
Other liabilities			180,536				184,122				205,900				184,476				183,055
Total stockholders' equity			936,319				907,342				886,596				828,383				822,689
Total liabilities and stockholders' equity		$	8,871,991			$	8,599,549			$	8,538,894			$	8,540,057			$	8,226,673
ANALYSIS OF LOAN PORTFOLIO
Loan/lease mix: (2)
Commercial and industrial - revolving		$	362,115			$	326,129			$	325,243			$	299,588			$	304,617
Commercial and industrial - other			1,370,561				1,374,333				1,390,068				1,381,967				1,308,853
Commercial and industrial - other - LIHTC			92,637				96,276				91,710				105,601				93,700
Total commercial and industrial			1,825,313				1,796,738				1,807,021				1,787,156				1,707,170
Commercial real estate, owner occupied			633,596				621,069				607,365				610,618				609,717
Commercial real estate, non-owner occupied			1,082,457				1,055,089				1,008,892				955,552				963,814
Construction and land development			331,454				410,918				477,424				472,695				437,682
Construction and land development - LIHTC			750,894				738,609				943,101				921,359				870,084
Multi-family			329,239				296,245				284,721				282,541				280,418
Multi-family - LIHTC			1,148,244				1,007,321				711,422				874,439				820,376
Direct financing leases			25,808				28,089				31,164				34,401				32,937
1-4 family real estate			583,542				563,358				544,971				539,931				535,405
Consumer			143,839				130,900				127,335				127,615				121,717
Total loans/leases		$	6,854,386			$	6,648,336			$	6,543,416			$	6,606,307			$	6,379,320
Less allowance for credit losses			87,706				84,470				87,200				87,669				85,797
Net loans/leases		$	6,766,680			$	6,563,866			$	6,456,216			$	6,518,638			$	6,293,523
ANALYSIS OF SECURITIES PORTFOLIO
Securities mix:
U.S. government sponsored agency securities		$	20,101			$	14,442			$	14,973			$	16,002			$	18,942
Municipal securities			885,046				884,469				853,645				764,017				743,608
Residential mortgage-backed and related securities			54,708				56,071				59,196				57,946				60,958
Asset backed securities			12,721				14,285				15,423				16,326				17,393
Other securities			38,464				40,539				41,115				43,272				43,156
Trading securities			22,362				22,258				22,368				-				-
Total securities (3)		$	1,033,402			$	1,032,064			$	1,006,720			$	897,563			$	884,057
Less allowance for credit losses			203				203				1,192				1,169				1,169
Net securities		$	1,033,199			$	1,031,861			$	1,005,528			$	896,394			$	882,888
ANALYSIS OF DEPOSITS
Deposit mix:
Noninterest-bearing demand deposits		$	956,445			$	955,167			$	1,038,689			$	1,027,791			$	1,101,605
Interest-bearing demand deposits			4,644,918				4,714,555				4,338,390				4,416,725				4,374,847
Time deposits			859,593				875,491				851,950				788,692				765,801
Brokered deposits			303,711				261,562				284,976				261,644				364,467
Total deposits		$	6,764,667			$	6,806,775			$	6,514,005			$	6,494,852			$	6,606,720
ANALYSIS OF BORROWINGS
Borrowings mix:
Term FHLB advances		$	135,000			$	135,000			$	135,000			$	135,000			$	135,000
Overnight FHLB advances			350,000				70,000				300,000				295,000				-
Other short-term borrowings			1,600				2,700				1,500				470				1,850
Subordinated notes			233,276				233,170				233,064				232,958				232,852
Junior subordinated debentures			48,795				48,763				48,731				48,698				48,666
Total borrowings		$	768,671			$	489,633			$	718,295			$	712,126			$	418,368

 

(1)

Loans with a fair value of $243.2 million, $274.8 million, $278.0 million and $291.0 million have been identified for securitization and are included in LHFS at June 30, 2024, March 31, 2024, September 30, 2023 and June 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 June 30, 2024.

(3)

As of June 30, 2024, March 31, 2024 and December 31, 2023, trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company in 2023.

 

 

QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

 

		For the Quarter Ended
		June 30,				March 31,				December 31,				September 30,				June 30,
		2024				2024				2023				2023				2023
		(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income		$	119,746			$	115,049			$	112,248			$	108,568			$	98,377
Interest expense			63,583				60,350				56,512				53,313				45,172
Net interest income			56,163				54,699				55,736				55,255				53,205
Provision for credit losses			5,496				2,969				5,199				3,806				3,606
Net interest income after provision for credit losses		$	50,667			$	51,730			$	50,537			$	51,449			$	49,599
Trust fees		$	3,103			$	3,199			$	3,084			$	2,863			$	2,844
Investment advisory and management fees			1,214				1,101				1,052				947				986
Deposit service fees			1,986				2,022				2,008				2,107				2,034
Gains on sales of residential real estate loans, net			540				382				323				476				500
Gains on sales of government guaranteed portions of loans, net			12				24				24				-				-
Capital markets revenue			17,758				16,457				36,956				15,596				22,490
Securities gains, net			-				-				-				-				12
Earnings on bank-owned life insurance			2,964				868				832				1,807				838
Debit card fees			1,571				1,466				1,561				1,584				1,589
Correspondent banking fees			510				512				465				450				356
Loan related fee income			962				836				845				800				770
Fair value gain (loss) on derivatives and trading securities			51				(163	)			(582	)			(336	)			83
Other			218				154				1,161				299				18
Total noninterest income		$	30,889			$	26,858			$	47,729			$	26,593			$	32,520
Salaries and employee benefits		$	31,079			$	31,860			$	41,059			$	32,098			$	31,459
Occupancy and equipment expense			6,377				6,514				6,789				6,228				6,100
Professional and data processing fees			4,823				4,613				4,223				4,456				4,078
FDIC insurance, other insurance and regulatory fees			1,854				1,945				2,115				1,721				1,927
Loan/lease expense			151				378				834				826				652
Net cost of (income from) and gains/losses on operations of other real estate			28				(30	)			38				3				-
Advertising and marketing			1,565				1,483				1,641				1,429				1,735
Communication and data connectivity			318				401				449				478				471
Supplies			259				275				333				335				281
Bank service charges			622				568				761				605				621
Correspondent banking expense			363				305				300				232				221
Intangibles amortization			690				690				716				691				765
Payment card processing			706				646				836				733				542
Trust expense			379				425				413				432				337
Other			674				617				431				814				538
Total noninterest expense		$	49,888			$	50,690			$	60,938			$	51,081			$	49,727
Net income before income taxes		$	31,668			$	27,898			$	37,328			$	26,961			$	32,392
Federal and state income tax expense			2,554				1,172				4,473				1,840				3,967
Net income		$	29,114			$	26,726			$	32,855			$	25,121			$	28,425
Basic EPS		$	1.73			$	1.59			$	1.96			$	1.50			$	1.70
Diluted EPS		$	1.72			$	1.58			$	1.95			$	1.49			$	1.69
Weighted average common shares outstanding			16,814,814				16,783,348				16,734,080				16,717,303				16,701,950
Weighted average common and common equivalent shares outstanding			16,921,854				16,910,675				16,875,952				16,847,951				16,799,527

 

 

QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

 

		For the Six Months Ended
		June 30,				June 30,
		2024				2023
		(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income		$	234,795			$	192,594
Interest expense			123,933				82,579
Net interest income			110,862				110,015
Provision for credit losses			8,465				7,534
Net interest income after provision for credit losses		$	102,397			$	102,481
Trust fees		$	6,302			$	5,750
Investment advisory and management fees			2,315				1,865
Deposit service fees			4,008				4,062
Gains on sales of residential real estate loans, net			922				812
Gains on sales of government guaranteed portions of loans, net			36				30
Capital markets revenue			34,215				39,513
Securities losses, net			-				(451	)
Earnings on bank-owned life insurance			3,832				1,545
Debit card fees			3,037				3,055
Correspondent banking fees			1,022				747
Loan related fee income			1,798				1,421
Fair value loss on derivatives and trading securities			(112	)			(344	)
Other			372				357
Total noninterest income		$	57,747			$	58,362
Salaries and employee benefits		$	62,939			$	63,462
Occupancy and equipment expense			12,891				12,014
Professional and data processing fees			9,436				7,592
Post-acquisition compensation, transition and integration costs			-				207
FDIC insurance, other insurance and regulatory fees			3,799				3,301
Loan/lease expense			529				1,208
Net cost of (income from) and gains/losses on operations of other real estate			(2	)			(67	)
Advertising and marketing			3,048				2,972
Communication and data connectivity			719				1,136
Supplies			534				586
Bank service charges			1,190				1,226
Correspondent banking expense			668				431
Intangibles amortization			1,380				1,531
Payment card processing			1,352				1,087
Trust expense			804				551
Other			1,291				1,275
Total noninterest expense		$	100,578			$	98,512
Net income before income taxes		$	59,566			$	62,331
Federal and state income tax expense			3,726				6,749
Net income		$	55,840			$	55,582
Basic EPS		$	3.32			$	3.32
Diluted EPS		$	3.30			$	3.29
Weighted average common shares outstanding			16,799,081				16,739,120
Weighted average common and common equivalent shares outstanding			16,916,264				16,870,830

 

 

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,
		2024				2024				2023				2023				2023				2024				2023
		(dollars in thousands, except per share data)
COMMON SHARE DATA
Common shares outstanding			16,824,985				16,807,056				16,749,254				16,731,646				16,713,853
Book value per common share (1)		$	55.65			$	53.99			$	52.93			$	49.51			$	49.22
Tangible book value per common share (Non-GAAP) (2)		$	46.65			$	44.93			$	43.81			$	40.33			$	39.99
Closing stock price		$	60.00			$	60.74			$	58.39			$	48.52			$	41.03
Market capitalization		$	1,009,499			$	1,020,861			$	977,989			$	811,819			$	685,769
Market price / book value			107.82	%			112.51	%			100.31	%			98.00	%			83.36	%
Market price / tangible book value			128.62	%			135.18	%			133.29	%			120.30	%			102.59	%
Earnings per common share (basic) LTM (3)		$	6.78			$	6.75			$	6.78			$	6.65			$	6.89
Price earnings ratio LTM (3)			8.85 x				9.00 x				8.61 x				7.30 x				5.96 x
TCE / TA (Non-GAAP) (4)			9.00	%			8.94	%			8.75	%			8.05	%			8.28	%
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Beginning balance		$	907,342			$	886,596			$	828,383			$	822,689			$	801,494
Net income			29,114				26,726				32,855				25,121				28,425
Other comprehensive income (loss), net of tax			(368	)			(5,373	)			25,363				(19,415	)			(6,336	)
Common stock cash dividends declared			(1,008	)			(1,008	)			(1,004	)			(1,003	)			(1,003	)
Repurchase and cancellation of shares of common stock as a result of a share repurchase program			-				-				-				-				(967	)
Other (5)			1,239				401				999				991				1,076
Ending balance		$	936,319			$	907,342			$	886,596			$	828,383			$	822,689
REGULATORY CAPITAL RATIOS (6):
Total risk-based capital ratio			14.33	%			14.30	%			14.29	%			14.48	%			14.64	%
Tier 1 risk-based capital ratio			10.58	%			10.50	%			10.27	%			10.30	%			10.34	%
Tier 1 leverage capital ratio			10.41	%			10.33	%			10.03	%			9.92	%			10.06	%
Common equity tier 1 ratio			10.00	%			9.91	%			9.67	%			9.68	%			9.70	%
KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets (annualized)			1.34	%			1.25	%			1.53	%			1.21	%			1.44	%			1.30	%			1.42	%
Return on average total equity (annualized)			12.72	%			11.83	%			15.35	%			11.95	%			13.97	%			12.32	%			13.91	%
Net interest margin			2.82	%			2.82	%			2.90	%			2.89	%			2.93	%			2.82	%			3.05	%
Net interest margin (TEY) (Non-GAAP)(7)			3.27	%			3.25	%			3.32	%			3.31	%			3.29	%			3.26	%			3.40	%
Efficiency ratio (Non-GAAP) (8)			57.31	%			62.15	%			58.90	%			62.41	%			58.01	%			59.65	%			58.51	%
Gross loans/leases held for investment / total assets			74.48	%			74.11	%			76.60	%			74.09	%			73.96	%			74.48	%			77.54	%
Gross loans/leases held for investment / total deposits			97.69	%			93.63	%			100.41	%			97.42	%			92.09	%			97.69	%			96.56	%
Effective tax rate			8.06	%			4.20	%			11.98	%			6.82	%			12.25	%			6.26	%			10.83	%
Full-time equivalent employees (9)			988				986				996				987				1009				988				1009
AVERAGE BALANCES
Assets		$	8,776,002			$	8,550,855			$	8,535,732			$	8,287,813			$	7,924,597			$	8,663,429			$	7,915,763
Loans/leases			6,779,075				6,598,614				6,483,572				6,476,512				6,219,980				6,688,844				6,192,700
Deposits			6,687,188				6,595,453				6,485,154				6,342,339				6,292,481				6,641,324				6,236,374
Total stockholders' equity			921,986				903,371				852,163				837,734				816,882				912,679				805,845

 

(1)

Includes accumulated other comprehensive income (loss).

(2)

Includes accumulated other comprehensive income (loss) and excludes intangible assets.  See GAAP to Non-GAAP reconciliations.

(3)

LTM : Last twelve months.

(4)

TCE / TCA : tangible common equity / total tangible assets.  See GAAP to non-GAAP reconciliations.

(5)

Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.

(6)

Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.

(7)

TEY : Tax equivalent yield.  See GAAP to Non-GAAP reconciliations.

(8)

See GAAP to Non-GAAP reconciliations.

(9)

The increase in full-time equivalent employees in the second quarter of 2023 and the subsequent decline in the third quarter of 2023 includes 19 summer interns

 

 

QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

 

ANALYSIS OF NET INTEREST INCOME AND MARGIN

 

		For the Quarter Ended
		June 30, 2024												March 31, 2024												June 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		$	13,065			$	183				5.54	%		$	19,955			$	269				5.42	%		$	16,976			$	223				5.27	%
Interest-bearing deposits at financial institutions			80,998				1,139				5.66	%			91,557				1,200				5.27	%			90,814				1,123				4.96	%
Investment securities - taxable			377,747				4,286				4.53	%			373,540				4,261				4.55	%			342,991				3,693				4.30	%
Investment securities - nontaxable (1)			704,761				9,462				5.37	%			685,969				9,349				5.45	%			577,494				6,217				4.31	%
Restricted investment securities			43,398				869				7.92	%			38,085				674				7.00	%			35,031				506				5.71	%
Loans (1)			6,779,075				112,719				6.69	%			6,598,614				107,673				6.56	%			6,219,980				93,159				6.01	%
Total earning assets (1)		$	7,999,044			$	128,658				6.46	%		$	7,807,720			$	123,426				6.35	%		$	7,283,286			$	104,921				5.78	%
Interest-bearing deposits		$	4,649,625			$	40,924				3.54	%		$	4,529,325			$	39,072				3.47	%		$	3,965,592			$	27,227				2.75	%
Time deposits			1,091,870				12,128				4.47	%			1,107,622				12,345				4.48	%			1,190,440				11,219				3.78	%
Short-term borrowings			1,622				21				5.18	%			1,763				23				5.16	%			1,980				34				6.82	%
Federal Home Loan Bank advances			464,231				6,238				5.32	%			355,220				4,738				5.28	%			211,593				2,653				4.96	%
Subordinated debentures			233,207				3,582				6.14	%			233,101				3,480				5.97	%			232,782				3,303				5.68	%
Junior subordinated debentures			48,774				688				5.58	%			48,742				692				5.62	%			48,647				738				6.00	%
Total interest-bearing liabilities		$	6,489,329			$	63,581				3.93	%		$	6,275,773			$	60,350				3.86	%		$	5,651,034			$	45,174				3.20	%
Net interest income (1)						$	65,077											$	63,076											$	59,747
Net interest margin (2)											2.82	%											2.82	%											2.93	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)											3.27	%											3.25	%											3.29	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)											3.26	%											3.24	%											3.28	%

 

		For the Six Months Ended
		June 30, 2024												June 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		$	16,510			$	452				5.41	%		$	18,119			$	457				5.09	%
Interest-bearing deposits at financial institutions			86,277				2,339				5.45	%			82,246				1,945				4.77	%
Investment securities - taxable			375,644				8,546				4.54	%			337,844				7,059				4.17	%
Investment securities - nontaxable (1)			695,365				18,813				5.41	%			598,244				13,009				4.35	%
Restricted investment securities			40,742				1,543				7.49	%			36,391				1,018				5.56	%
Loans (1)			6,688,844				220,392				6.63	%			6,192,700				181,707				5.92	%
Total earning assets (1)		$	7,903,382			$	252,085				6.41	%		$	7,265,544			$	205,195				5.69	%
Interest-bearing deposits		$	4,589,479			$	80,027				3.51	%		$	4,016,217			$	51,003				2.56	%
Time deposits			1,099,746				24,473				4.48	%			1,031,062				17,222				3.37	%
Short-term borrowings			1,688				44				5.19	%			4,642				132				5.75	%
Federal Home Loan Bank advances			409,725				10,977				5.30	%			253,729				6,174				4.84	%
Subordinated debentures			233,154				7,062				6.06	%			232,731				6,615				5.68	%
Junior subordinated debentures			48,758				1,381				5.60	%			48,630				1,433				5.86	%
Total interest-bearing liabilities		$	6,382,550			$	123,964				3.90	%		$	5,587,011			$	82,579				2.97	%
Net interest income (1)						$	128,121											$	122,616
Net interest margin (2)											2.82	%											3.05	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)											3.26	%											3.40	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)											3.24	%											3.38	%

 

(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,
		2024				2024				2023				2023				2023
		(dollars in thousands, except per share data)
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES
Beginning balance		$	84,470			$	87,200			$	87,669			$	85,797			$	86,573
Change in ACL for transfer of loans to LHFS			498				(3,377	)			266				175				(2,277	)
Credit loss expense			4,343				3,736				2,519				3,260				3,313
Loans/leases charged off			(1,751	)			(3,560	)			(3,354	)			(1,816	)			(1,947	)
Recoveries on loans/leases previously charged off			146				471				100				253				135
Ending balance		$	87,706			$	84,470			$	87,200			$	87,669			$	85,797
NONPERFORMING ASSETS
Nonaccrual loans/leases		$	33,546			$	29,439			$	32,753			$	34,568			$	26,062
Accruing loans/leases past due 90 days or more			87				142				86				-				83
Total nonperforming loans/leases			33,633				29,581				32,839				34,568				26,145
Other real estate owned			369				784				1,347				120				-
Other repossessed assets			512				962				-				-				-
Total nonperforming assets		$	34,514			$	31,327			$	34,186			$	34,688			$	26,145
ASSET QUALITY RATIOS
Nonperforming assets / total assets			0.39	%			0.36	%			0.40	%			0.41	%			0.32	%
ACL for loans and leases / total loans/leases held for investment			1.33	%			1.33	%			1.33	%			1.39	%			1.41	%
ACL for loans and leases / nonperforming loans/leases			260.77	%			285.55	%			265.54	%			253.61	%			328.16	%
Net charge-offs as a % of average loans/leases			0.02	%			0.05	%			0.05	%			0.02	%			0.03	%
INTERNALLY ASSIGNED RISK RATING (1) (2)
Special mention		$	85,096			$	111,729			$	125,308			$	128,052			$	117,761
Substandard (3)			80,345				70,841				70,425				72,550				67,192
Doubtful (3)			-				-				-				-				-
Total Criticized loans (4)		$	165,441			$	182,570			$	195,733			$	200,602			$	184,953
Classified loans as a % of total loans/leases (3)			1.17	%			1.07	%			1.08	%			1.10	%			1.05	%
Total Criticized loans as a % of total loans/leases (4)			2.41	%			2.75	%			2.99	%			3.04	%			2.90	%

 

(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 Six Months Ended
		June 30,				March 31,				June 30,				June 30,				June 30,
SELECT FINANCIAL DATA - SUBSIDIARIES		2024				2024				2023				2024				2023
		(dollars in thousands)
TOTAL ASSETS
Quad City Bank and Trust (1)		$	2,559,049			$	2,618,727			$	2,611,832
m2 Equipment Finance, LLC			359,012				350,801				322,838
Cedar Rapids Bank and Trust			2,428,267				2,423,936				2,389,623
Community State Bank			1,531,109				1,445,230				1,332,966
Guaranty Bank			2,369,754				2,327,985				2,179,844
TOTAL DEPOSITS
Quad City Bank and Trust (1)		$	2,100,520			$	2,161,515			$	2,166,249
Cedar Rapids Bank and Trust			1,721,564				1,757,353				1,791,861
Community State Bank			1,188,551				1,187,926				1,073,907
Guaranty Bank			1,791,448				1,743,514				1,653,299
TOTAL LOANS & LEASES
Quad City Bank and Trust (1)		$	2,107,605			$	2,046,038			$	1,925,162
m2 Equipment Finance, LLC			363,897				354,815				328,479
Cedar Rapids Bank and Trust			1,736,438				1,680,127				1,728,280
Community State Bank			1,162,686				1,113,070				1,025,844
Guaranty Bank			1,847,658				1,809,101				1,700,034
TOTAL LOANS & LEASES / TOTAL DEPOSITS
Quad City Bank and Trust (1)			100	%			95	%			89	%
Cedar Rapids Bank and Trust			101	%			96	%			96	%
Community State Bank			98	%			94	%			96	%
Guaranty Bank			103	%			104	%			103	%
TOTAL LOANS & LEASES / TOTAL ASSETS
Quad City Bank and Trust (1)			82	%			78	%			74	%
Cedar Rapids Bank and Trust			72	%			69	%			72	%
Community State Bank			76	%			77	%			77	%
Guaranty Bank			78	%			78	%			78	%
ACL ON LOANS/LEASES AS A PERCENTAGE OF LOANS/LEASES
Quad City Bank and Trust (1)			1.43	%			1.40	%			1.44	%
m2 Equipment Finance, LLC			3.86	%			3.75	%			3.46	%
Cedar Rapids Bank and Trust			1.38	%			1.34	%			1.41	%
Community State Bank			1.08	%			1.12	%			1.27	%
Guaranty Bank			1.13	%			1.15	%			0.22	%
RETURN ON AVERAGE ASSETS
Quad City Bank and Trust (1)			0.88	%			0.79	%			0.82	%			0.84	%			1.02	%
Cedar Rapids Bank and Trust			2.94	%			3.09	%			3.52	%			3.01	%			3.30	%
Community State Bank			1.26	%			1.25	%			1.42	%			1.25	%			1.46	%
Guaranty Bank			1.42	%			0.88	%			0.97	%			1.15	%			0.99	%
NET INTEREST MARGIN PERCENTAGE (2)
Quad City Bank and Trust (1)			3.39	%			3.31	%			3.28	%			3.35	%			3.36	%
Cedar Rapids Bank and Trust			3.75	%			3.77	%			3.69	%			3.76	%			3.86	%
Community State Bank			3.72	%			3.75	%			3.90	%			3.74	%			3.94	%
Guaranty Bank (3)			2.99	%			2.98	%			3.10	%			2.99	%			3.30	%
ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET INTEREST MARGIN, NET
Cedar Rapids Bank and Trust		$	-			$	-			$	-			$	-			$	(8	)
Community State Bank			(1	)			(1	)			(1	)			(2	)			70
Guaranty Bank			301				396				168				697				965
QCR Holdings, Inc. (4)			(32	)			(32	)			(33	)			(64	)			(65	)

 

(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)

Guaranty Bank's net interest margin percentage includes various purchase accounting adjustments.  Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.86% for the quarter ended June 30, 2024, 2.91% for the quarter ended March 31, 2024 and 3.11 for the quarter ended June 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
		June 30,				March 31,				December 31,				September 30,				June 30,
GAAP TO NON-GAAP RECONCILIATIONS		2024				2024				2023				2023				2023
		(dollars in thousands, except per share data)
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)
Stockholders' equity (GAAP)		$	936,319			$	907,342			$	886,596			$	828,383			$	822,689
Less: Intangible assets			151,468				152,158				152,848				153,564				154,255
Tangible common equity (non-GAAP)		$	784,851			$	755,184			$	733,748			$	674,819			$	668,434
Total assets (GAAP)		$	8,871,991			$	8,599,549			$	8,538,894			$	8,540,057			$	8,226,673
Less: Intangible assets			151,468				152,158				152,848				153,564				154,255
Tangible assets (non-GAAP)		$	8,720,523			$	8,447,391			$	8,386,046			$	8,386,493			$	8,072,418
Tangible common equity to tangible assets ratio (non-GAAP)			9.00	%			8.94	%			8.75	%			8.05	%			8.28	%

 

(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)		2024				2024				2023				2023				2023				2024				2023
		(dollars in thousands, except per share data)
Net income (GAAP)		$	29,114			$	26,726			$	32,855			$	25,121			$	28,425			$	55,840			$	55,582
Less non-core items (post-tax) (2):
Income:
Securities gains (losses), net			-				-				-				-				9				-				(356	)
Fair value gain (loss) on derivatives, net			(145	)			(144	)			(460	)			(265	)			66				(288	)			(272	)
Total non-core income (non-GAAP)		$	(145	)		$	(144	)		$	(460	)		$	(265	)		$	75			$	(288	)		$	(628	)
Expense:
Post-acquisition compensation, transition and integration costs			-				-				-				-				-				-				164
Total non-core expense (non-GAAP)		$	-			$	-			$	-			$	-			$	-			$	-			$	164
Adjusted net income  (non-GAAP) (1)		$	29,259			$	26,870			$	33,315			$	25,386			$	28,350			$	56,128			$	56,374
ADJUSTED EARNINGS PER COMMON SHARE (1)
Adjusted net income (non-GAAP) (from above)		$	29,259			$	26,870			$	33,315			$	25,386			$	28,350			$	56,128			$	56,374
Weighted average common shares outstanding			16,814,814				16,783,348				16,734,080				16,717,303				16,701,950				16,799,081				16,739,120
Weighted average common and common equivalent shares outstanding			16,921,854				16,910,675				16,875,952				16,847,951				16,799,527				16,916,264				16,870,830
Adjusted earnings per common share (non-GAAP):
Basic		$	1.74			$	1.60			$	1.99			$	1.52			$	1.70			$	3.34			$	3.37
Diluted		$	1.73			$	1.59			$	1.97			$	1.51			$	1.69			$	3.32			$	3.34
ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)
Adjusted net income (non-GAAP) (from above)		$	29,259			$	26,870			$	33,315			$	25,386			$	28,350			$	56,128			$	56,374
Average Assets		$	8,776,002			$	8,550,855			$	8,535,732			$	8,287,813			$	7,924,597			$	8,663,429			$	7,915,763
Adjusted return on average assets (annualized) (non-GAAP)			1.33	%			1.26	%			1.56	%			1.23	%			1.43	%			1.30	%			1.42	%
Adjusted return on average equity (annualized) (non-GAAP)			12.69	%			11.90	%			15.64	%			12.12	%			13.88	%			12.30	%			13.99	%
NET INTEREST MARGIN (TEY) (3)
Net interest income (GAAP)		$	56,163			$	54,699			$	55,736			$	55,255			$	53,205			$	110,862			$	110,015
Plus: Tax equivalent adjustment (4)			8,914				8,377				7,954				7,771				6,542				17,259				12,601
Net interest income - tax equivalent (Non-GAAP)		$	65,077			$	63,076			$	63,690			$	63,026			$	59,747			$	128,121			$	122,616
Less:  Acquisition accounting net accretion			268				363				673				539				134				631				962
Adjusted net interest income		$	64,809			$	62,713			$	63,017			$	62,487			$	59,613			$	127,490			$	121,654
Average earning assets		$	7,999,044			$	7,807,720			$	7,631,035			$	7,573,785			$	7,283,286			$	7,903,382			$	7,265,544
Net interest margin (GAAP)			2.82	%			2.82	%			2.90	%			2.89	%			2.93	%			2.82	%			3.05	%
Net interest margin (TEY) (Non-GAAP)			3.27	%			3.25	%			3.32	%			3.31	%			3.29	%			3.26	%			3.40	%
Adjusted net interest margin (TEY) (Non-GAAP)			3.26	%			3.24	%			3.29	%			3.28	%			3.28	%			3.24	%			3.38	%
EFFICIENCY RATIO (5)
Noninterest expense (GAAP)		$	49,888			$	50,690			$	60,938			$	51,081			$	49,727			$	100,578			$	98,512
Net interest income (GAAP)		$	56,163			$	54,699			$	55,736			$	55,255			$	53,205			$	110,862			$	110,015
Noninterest income (GAAP)			30,889				26,858				47,729				26,593				32,520				57,747				58,362
Total income		$	87,052			$	81,557			$	103,465			$	81,848			$	85,725			$	168,609			$	168,377
Efficiency ratio (noninterest expense/total income) (Non-GAAP)			57.31	%			62.15	%			58.90	%			62.41	%			58.01	%			59.65	%			58.51	%

 

(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%.

(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.

 

 

v3.24.2

Cover	Jul. 24, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 24, 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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