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

Third Quarter 2024 Highlights

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

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

Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the third quarter of 2024 were $30.3 million and $1.78, respectively. For the second quarter of 2024, adjusted net income (non-GAAP) was $29.3 million and adjusted diluted EPS (non-GAAP) was $1.73. For the third quarter of 2023, adjusted net income (non-GAAP) was $25.4 million, and adjusted diluted EPS (non-GAAP) was $1.51.

	For the Quarter Ended
	September 30,		June 30,		September 30,
$ in millions (except per share data)	2024		2024		2023
Net Income	$	27.8	$	29.1	$	25.1
Diluted EPS	$	1.64	$	1.72	$	1.49
Adjusted Net Income (non-GAAP)*	$	30.3	$	29.3	$	25.4
Adjusted Diluted EPS (non-GAAP)*	$	1.78	$	1.73	$	1.51

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

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

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

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

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

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

Strong Noninterest Income Including $16.3 Million of Capital Markets Revenue

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

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

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

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

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

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

Strong Core Deposit Growth

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

Continued Loan Growth

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

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

Asset Quality Remains Excellent

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

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

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

Continued Strong Capital Levels and Outstanding Tangible Book Value Expansion

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

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

Conference Call Details

The Company will host an earnings call/webcast tomorrow, October 24, 2024, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through October 31, 2024. The replay access information is 877-344-7529 (international 412-317-0088); access code 4892655. A webcast of the teleconference can be accessed on the Company's News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

About Us

QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018, and Guaranty Bank, also based in Springfield, Missouri, was acquired by the Company and merged with Springfield First Community Bank in 2022, with the combined entity operating under the Guaranty Bank name. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. The Company has 36 locations in Iowa, Missouri, Wisconsin and Illinois. As of September 30, 2024, the Company had $9.1 billion in assets, $6.8 billion in loans and $7.0 billion in deposits. For additional information, please visit the Company's website at www.qcrh.com.

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

A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the ongoing conflict in the Middle East and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (iv) changes in local, state and federal laws, regulations and governmental policies concerning the Company's general business, including as a result of the upcoming 2024 presidential election or any changes in response to failures of other banks; (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions and "fintech" companies, and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversity their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, (xix) changes in the interest rates and prepayment rates of the Company's assets, and (xx) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission.

Contact:

Todd A. Gipple                                

President                                

Chief Financial Officer                        

(309) 743-7745                                

[email protected]

QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)
	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
	(dollars in thousands)
CONDENSED BALANCE SHEET
Cash and due from banks	$	103,840		$	92,173		$	80,988		$	97,123		$	104,265
Federal funds sold and interest-bearing deposits		159,159			102,262			77,020			140,369			80,650
Securities, net of allowance for credit losses		1,146,046			1,033,199			1,031,861			1,005,528			896,394
Loans receivable held for sale (1)		167,047			246,124			275,344			2,594			278,893
Loans/leases receivable held for investment		6,661,755			6,608,262			6,372,992			6,540,822			6,327,414
Allowance for credit losses		(86,321	)		(87,706	)		(84,470	)		(87,200	)		(87,669	)
Intangibles		11,751			12,441			13,131			13,821			14,537
Goodwill		138,596			139,027			139,027			139,027			139,027
Derivatives		261,913			194,354			183,888			188,978			291,295
Other assets		524,779			531,855			509,768			497,832			495,251
Total assets	$	9,088,565		$	8,871,991		$	8,599,549		$	8,538,894		$	8,540,057
Total deposits	$	6,984,633		$	6,764,667		$	6,806,775		$	6,514,005		$	6,494,852
Total borrowings		660,344			768,671			489,633			718,295			712,126
Derivatives		285,769			221,798			211,677			214,098			320,220
Other liabilities		181,199			180,536			184,122			205,900			184,476
Total stockholders' equity		976,620			936,319			907,342			886,596			828,383
Total liabilities and stockholders' equity	$	9,088,565		$	8,871,991		$	8,599,549		$	8,538,894		$	8,540,057
ANALYSIS OF LOAN PORTFOLIO
Loan/lease mix: (2)
Commercial and industrial - revolving	$	387,409		$	362,115		$	326,129		$	325,243		$	299,588
Commercial and industrial - other		1,321,053			1,370,561			1,374,333			1,390,068			1,381,967
Commercial and industrial - other - LIHTC		89,028			92,637			96,276			91,710			105,601
Total commercial and industrial		1,797,490			1,825,313			1,796,738			1,807,021			1,787,156
Commercial real estate, owner occupied		622,072			633,596			621,069			607,365			610,618
Commercial real estate, non-owner occupied		1,103,694			1,082,457			1,055,089			1,008,892			955,552
Construction and land development		342,335			331,454			410,918			477,424			472,695
Construction and land development - LIHTC		913,841			750,894			738,609			943,101			921,359
Multi-family		324,090			329,239			296,245			284,721			282,541
Multi-family - LIHTC		973,682			1,148,244			1,007,321			711,422			874,439
Direct financing leases		19,241			25,808			28,089			31,164			34,401
1-4 family real estate		587,512			583,542			563,358			544,971			539,931
Consumer		144,845			143,839			130,900			127,335			127,615
Total loans/leases	$	6,828,802		$	6,854,386		$	6,648,336		$	6,543,416		$	6,606,307
Less allowance for credit losses		86,321			87,706			84,470			87,200			87,669
Net loans/leases	$	6,742,481		$	6,766,680		$	6,563,866		$	6,456,216		$	6,518,638
ANALYSIS OF SECURITIES PORTFOLIO
Securities mix:
U.S. government sponsored agency securities	$	18,621		$	20,101		$	14,442		$	14,973		$	16,002
Municipal securities		965,810			885,046			884,469			853,645			764,017
Residential mortgage-backed and related securities		53,488			54,708			56,071			59,196			57,946
Asset backed securities		10,455			12,721			14,285			15,423			16,326
Other securities		39,190			38,464			40,539			41,115			43,272
Trading securities (3)		58,685			22,362			22,258			22,368			-
Total securities	$	1,146,249		$	1,033,402		$	1,032,064		$	1,006,720		$	897,563
Less allowance for credit losses		203			203			203			1,192			1,169
Net securities	$	1,146,046		$	1,033,199		$	1,031,861		$	1,005,528		$	896,394
ANALYSIS OF DEPOSITS
Deposit mix:
Noninterest-bearing demand deposits	$	969,348		$	956,445		$	955,167		$	1,038,689		$	1,027,791
Interest-bearing demand deposits		4,715,087			4,644,918			4,714,555			4,338,390			4,416,725
Time deposits		942,847			859,593			875,491			851,950			788,692
Brokered deposits		357,351			303,711			261,562			284,976			261,644
Total deposits	$	6,984,633		$	6,764,667		$	6,806,775		$	6,514,005		$	6,494,852
ANALYSIS OF BORROWINGS
Borrowings mix:
Term FHLB advances	$	145,383		$	135,000		$	135,000		$	135,000		$	135,000
Overnight FHLB advances		230,000			350,000			70,000			300,000			295,000
Other short-term borrowings		2,750			1,600			2,700			1,500			470
Subordinated notes		233,383			233,276			233,170			233,064			232,958
Junior subordinated debentures		48,828			48,795			48,763			48,731			48,698
Total borrowings	$	660,344		$	768,671		$	489,633		$	718,295		$	712,126
(1) Loans with a fair value of $165.9 million, $243.2 million, $274.8 million and $278.0 million have been identified for securitization and are included in LHFS at September 30, 2024, June 30, 2024, March 31, 2024 and September 30, 2023, respectively.
(2) Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.0 billion at September 30, 2024.
(3) Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company.

QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)
			For the Quarter Ended
			September 30,			June 30,		March 31,			December 31,			September 30,
			2024			2024		2024			2023			2023
			(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income			$	125,420		$	119,746	$	115,049		$	112,248		$	108,568
Interest expense				65,698			63,583		60,350			56,512			53,313
Net interest income				59,722			56,163		54,699			55,736			55,255
Provision for credit losses				3,484			5,496		2,969			5,199			3,806
Net interest income after provision for credit losses			$	56,238		$	50,667	$	51,730		$	50,537		$	51,449
Trust fees			$	3,270		$	3,103	$	3,199		$	3,084		$	2,863
Investment advisory and management fees				1,229			1,214		1,101			1,052			947
Deposit service fees				2,294			1,986		2,022			2,008			2,107
Gains on sales of residential real estate loans, net				385			540		382			323			476
Gains on sales of government guaranteed portions of loans, net				-			12		24			24			-
Capital markets revenue				16,290			17,758		16,457			36,956			15,596
Earnings on bank-owned life insurance				814			2,964		868			832			1,807
Debit card fees				1,575			1,571		1,466			1,561			1,584
Correspondent banking fees				507			510		512			465			450
Loan related fee income				949			962		836			845			800
Fair value gain (loss) on derivatives and trading securities				(886	)		51		(163	)		(582	)		(336	)
Other				730			218		154			1,161			299
Total noninterest income			$	27,157		$	30,889	$	26,858		$	47,729		$	26,593
Salaries and employee benefits			$	31,637		$	31,079	$	31,860		$	41,059		$	32,098
Occupancy and equipment expense				6,168			6,377		6,514			6,789			6,228
Professional and data processing fees				4,457			4,823		4,613			4,223			4,456
Restructuring expense				1,954			-		-			-			-
FDIC insurance, other insurance and regulatory fees				1,711			1,854		1,945			2,115			1,721
Loan/lease expense				587			151		378			834			826
Net cost of (income from) and gains/losses on operations of other real estate				(42	)		28		(30	)		38			3
Advertising and marketing				2,124			1,565		1,483			1,641			1,429
Communication and data connectivity				333			318		401			449			478
Supplies				278			259		275			333			335
Bank service charges				603			622		568			761			605
Correspondent banking expense				325			363		305			300			232
Intangibles amortization				690			690		690			716			691
Goodwill impairment				432			-		-			-			-
Payment card processing				785			706		646			836			733
Trust expense				395			379		425			413			432
Other				1,128			674		617			431			814
Total noninterest expense			$	53,565		$	49,888	$	50,690		$	60,938		$	51,081
Net income before income taxes			$	29,830		$	31,668	$	27,898		$	37,328		$	26,961
Federal and state income tax expense				2,045			2,554		1,172			4,473			1,840
Net income			$	27,785		$	29,114	$	26,726		$	32,855		$	25,121
Basic EPS			$	1.65		$	1.73	$	1.59		$	1.96		$	1.50
Diluted EPS			$	1.64		$	1.72	$	1.58		$	1.95		$	1.49
Weighted average common shares outstanding				16,846,200			16,814,814		16,783,348			16,734,080			16,717,303
Weighted average common and common equivalent shares outstanding				16,982,400			16,921,854		16,910,675			16,875,952			16,847,951

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

QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)
	As of and for the Quarter Ended																For the Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,				September 30,			September 30,
	2024			2024			2024			2023			2023				2024			2023
	(dollars in thousands, except per share data)
COMMON SHARE DATA
Common shares outstanding		16,861,108			16,824,985			16,807,056			16,749,254			16,731,646
Book value per common share (1)	$	57.92		$	55.65		$	53.99		$	52.93		$	49.51
Tangible book value per common share (Non-GAAP) (2)	$	49.00		$	46.65		$	44.93		$	43.81		$	40.33
Closing stock price	$	74.03		$	60.00		$	60.74		$	58.39		$	48.52
Market capitalization	$	1,248,228		$	1,009,499		$	1,020,861		$	977,989		$	811,819
Market price / book value		127.81	%		107.82	%		112.51	%		100.31	%		98.00	%
Market price / tangible book value		151.07	%		128.62	%		135.18	%		133.29	%		120.30	%
Earnings per common share (basic) LTM (3)	$	6.93		$	6.78		$	6.75		$	6.78		$	6.65
Price earnings ratio LTM (3)	10.68 x			8.85 x			9.00 x			8.61 x			7.30 x
TCE / TA (Non-GAAP) (4)		9.24	%		9.00	%		8.94	%		8.75	%		8.05	%
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Beginning balance	$	936,319		$	907,342		$	886,596		$	828,383		$	822,689
Net income		27,785			29,114			26,726			32,855			25,121
Other comprehensive income (loss), net of tax		12,057			(368	)		(5,373	)		25,363			(19,415	)
Common stock cash dividends declared		(1,012	)		(1,008	)		(1,008	)		(1,004	)		(1,003	)
Other (5)		1,471			1,239			401			999			991
Ending balance	$	976,620		$	936,319		$	907,342		$	886,596		$	828,383
REGULATORY CAPITAL RATIOS (6):
Total risk-based capital ratio		13.87	%		14.21	%		14.30	%		14.29	%		14.48	%
Tier 1 risk-based capital ratio		10.33	%		10.49	%		10.50	%		10.27	%		10.30	%
Tier 1 leverage capital ratio		10.50	%		10.40	%		10.33	%		10.03	%		9.92	%
Common equity tier 1 ratio		9.79	%		9.92	%		9.91	%		9.67	%		9.68	%
KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets (annualized)		1.24	%		1.33	%		1.25	%		1.54	%		1.21	%			1.27	%		1.34	%
Return on average total equity (annualized)		11.55	%		12.63	%		11.83	%		15.42	%		11.99	%			12.00	%		13.18	%
Net interest margin		2.90	%		2.82	%		2.82	%		2.90	%		2.89	%			2.85	%		3.00	%
Net interest margin (TEY) (Non-GAAP)(7)		3.37	%		3.27	%		3.25	%		3.32	%		3.31	%			3.30	%		3.37	%
Efficiency ratio (Non-GAAP) (8)		61.65	%		57.31	%		62.15	%		58.90	%		62.41	%			60.33	%		59.78	%
Gross loans/leases held for investment / total assets		73.30	%		74.48	%		74.11	%		76.60	%		74.09	%			73.30	%		77.36	%
Gross loans/leases held for investment / total deposits		95.38	%		97.69	%		93.63	%		100.41	%		97.42	%			95.38	%		101.72	%
Effective tax rate		6.86	%		8.06	%		4.20	%		11.98	%		6.82	%			6.46	%		9.62	%
Full-time equivalent employees		976			988			986			996			987				976			987
AVERAGE BALANCES
Assets	$	8,968,653		$	8,776,002		$	8,550,855		$	8,535,732		$	8,287,813			$	8,765,913		$	8,041,141
Loans/leases		6,840,527			6,779,075			6,598,614			6,483,572			6,476,512				6,739,773			6,288,343
Deposits		6,858,196			6,687,188			6,595,453			6,485,154			6,342,339				6,714,251			6,272,083
Total stockholders' equity		962,302			921,986			903,371			852,163			837,734				929,341			816,591
(1) Includes accumulated other comprehensive income (loss).
(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets. See GAAP to Non-GAAP reconciliations.
(3) LTM : Last twelve months.
(4) TCE / TCA : tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations.
(5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.
(6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.
(7) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.
(8) See GAAP to Non-GAAP reconciliations.

QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)
ANALYSIS OF NET INTEREST INCOME AND MARGIN
		For the Quarter Ended
		September 30, 2024							June 30, 2024							September 30, 2023
		Average Balance		Interest Earned or Paid		Average Yield or Cost			Average Balance		Interest Earned or Paid		Average Yield or Cost			Average Balance		Interest Earned or Paid		Average Yield or Cost
		(dollars in thousands)
Fed funds sold		$	12,596	$	173	5.37	%		$	13,065	$	183	5.54	%		$	21,526	$	284	5.23	%
Interest-bearing deposits at financial institutions			145,597		1,915	5.23	%			80,998		1,139	5.66	%			86,807		1,205	5.51	%
Investment securities - taxable			381,285		4,439	4.64	%			377,747		4,286	4.53	%			344,657		3,788	4.38	%
Investment securities - nontaxable (1)			760,645		10,744	5.65	%			704,761		9,462	5.37	%			600,693		6,974	4.64	%
Restricted investment securities			42,546		840	7.73	%			43,398		869	7.92	%			43,590		659	5.91	%
Loans (1)			6,840,527		116,854	6.80	%			6,779,075		112,719	6.69	%			6,476,512		103,428	6.34	%
Total earning assets (1)		$	8,183,196	$	134,965	6.56	%		$	7,999,044	$	128,658	6.46	%		$	7,573,785	$	116,338	6.10	%
Interest-bearing deposits		$	4,739,757	$	42,180	3.54	%		$	4,649,625	$	40,924	3.54	%		$	4,264,208	$	33,563	3.12	%
Time deposits			1,164,560		13,206	4.51	%			1,091,870		12,128	4.47	%			999,488		10,003	3.97	%
Short-term borrowings			2,485		32	5.07	%			1,622		21	5.18	%			1,514		20	5.28	%
Federal Home Loan Bank advances			445,632		5,972	5.24	%			464,231		6,238	5.32	%			425,870		5,724	5.26	%
Subordinated debentures			233,313		3,616	6.20	%			233,207		3,582	6.14	%			232,890		3,307	5.68	%
Junior subordinated debentures			48,806		693	5.56	%			48,774		688	5.58	%			48,678		695	5.59	%
Total interest-bearing liabilities		$	6,634,553	$	65,699	3.93	%		$	6,489,329	$	63,581	3.93	%		$	5,972,648	$	53,312	3.54	%
Net interest income (1)				$	69,266						$	65,077						$	63,026
Net interest margin (2)						2.90	%						2.82	%						2.89	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)						3.37	%						3.27	%						3.31	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)						3.34	%						3.26	%						3.28	%
		For the Nine Months Ended
		September 30, 2024							September 30, 2023
		Average Balance		Interest Earned or Paid		Average Yield or Cost			Average Balance		Interest Earned or Paid		Average Yield or Cost
		(dollars in thousands)
Fed funds sold		$	15,196	$	625	5.40	%		$	19,267	$	741	5.14	%
Interest-bearing deposits at financial institutions			106,195		4,254	5.35	%			83,783		3,151	5.03	%
Investment securities - taxable			377,538		12,986	4.57	%			340,140		10,847	4.24	%
Investment securities - nontaxable (1)			717,284		29,557	5.50	%			599,070		19,892	4.43	%
Restricted investment securities			41,348		2,383	7.57	%			38,817		1,677	5.70	%
Loans (1)			6,739,773		337,244	6.68	%			6,288,343		285,136	6.06	%
Total earning assets (1)		$	7,997,334	$	387,049	6.46	%		$	7,369,420	$	321,444	5.83	%
Interest-bearing deposits		$	4,639,937	$	122,207	3.52	%		$	4,099,789	$	84,565	2.76	%
Time deposits			1,121,508		37,679	4.49	%			1,020,421		27,225	3.57	%
Short-term borrowings			1,846		76	5.47	%			3,588		152	5.66	%
Federal Home Loan Bank advances			421,782		16,948	5.28	%			311,740		11,898	5.03	%
Subordinated debentures			233,207		10,678	6.10	%			232,784		9,922	5.68	%
Junior subordinated debentures			48,774		2,074	5.59	%			48,646		2,129	5.77	%
Total interest-bearing liabilities		$	6,467,054	$	189,662	3.91	%		$	5,716,968	$	135,891	3.17	%
Net interest income (1)				$	197,387						$	185,553
Net interest margin (2)						2.85	%						3.00	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)						3.30	%						3.37	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)						3.28	%						3.34	%
(1) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(2) See "Select Financial Data - Subsidiaries" for a breakdown of amortization/accretion included in net interest margin for each period presented.
(3) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.

QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)
	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
	2024			2024			2024			2023			2023
	(dollars in thousands, except per share data)
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES
Beginning balance	$	87,706		$	84,470		$	87,200		$	87,669		$	85,797
Change in ACL for transfer of loans to LHFS		(1,812	)		498			(3,377	)		266			175
Credit loss expense		3,828			4,343			3,736			2,519			3,260
Loans/leases charged off		(3,871	)		(1,751	)		(3,560	)		(3,354	)		(1,816	)
Recoveries on loans/leases previously charged off		470			146			471			100			253
Ending balance	$	86,321		$	87,706		$	84,470		$	87,200		$	87,669
NONPERFORMING ASSETS
Nonaccrual loans/leases	$	33,480		$	33,546		$	29,439		$	32,753		$	34,568
Accruing loans/leases past due 90 days or more		1,298			87			142			86			-
Total nonperforming loans/leases		34,778			33,633			29,581			32,839			34,568
Other real estate owned		369			369			784			1,347			120
Other repossessed assets		542			512			962			-			-
Total nonperforming assets	$	35,689		$	34,514		$	31,327		$	34,186		$	34,688
ASSET QUALITY RATIOS
Nonperforming assets / total assets		0.39	%		0.39	%		0.36	%		0.40	%		0.41	%
ACL for loans and leases / total loans/leases held for investment		1.30	%		1.33	%		1.33	%		1.33	%		1.39	%
ACL for loans and leases / nonperforming loans/leases		248.21	%		260.77	%		285.55	%		265.54	%		253.61	%
Net charge-offs as a % of average loans/leases		0.05	%		0.02	%		0.05	%		0.05	%		0.02	%
INTERNALLY ASSIGNED RISK RATING (1) (2)
Special mention	$	80,121		$	85,096		$	111,729		$	125,308		$	128,052
Substandard (3)		70,022			80,345			70,841			70,425			72,550
Doubtful (3)		-			-			-			-			-
Total Criticized loans (4)	$	150,143		$	165,441		$	182,570		$	195,733		$	200,602
Classified loans as a % of total loans/leases (3)		1.03	%		1.17	%		1.07	%		1.08	%		1.10	%
Total Criticized loans as a % of total loans/leases (4)		2.20	%		2.41	%		2.75	%		2.99	%		3.04	%
(1) During the first quarter of 2024, the Company revised the risk rating scale used for credit quality monitoring.
(2) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass for the government guaranteed portion.
(3) Classified loans are defined as loans with internally assigned risk ratings of 10 or 11 (7 or 8 prior to January 1, 2024), regardless of performance, and include loans identified as Substandard or Doubtful.
(4) Total Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11 (6, 7, or 8 prior to January 1, 2024), regardless of performance, and include loans identified as Special Mention, Substandard, or Doubtful.

QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)
				For the Quarter Ended												For the Nine Months Ended
				September 30,				June 30,				September 30,				September 30,				September 30,
		SELECT FINANCIAL DATA - SUBSIDIARIES		2024				2024				2023				2024				2023
				(dollars in thousands)
		TOTAL ASSETS
		Quad City Bank and Trust (1)		$	2,552,962			$	2,559,049			$	2,433,084
		m2 Equipment Finance, LLC			349,166				359,012				336,180
		Cedar Rapids Bank and Trust			2,625,943				2,428,267				2,442,263
		Community State Bank			1,519,585				1,531,109				1,417,250
		Guaranty Bank			2,360,301				2,369,754				2,242,638
		TOTAL DEPOSITS
		Quad City Bank and Trust (1)		$	2,205,465			$	2,100,520			$	1,973,989
		Cedar Rapids Bank and Trust			1,765,964				1,721,564				1,722,905
		Community State Bank			1,269,147				1,188,551				1,132,724
		Guaranty Bank			1,778,453				1,791,448				1,722,861
		TOTAL LOANS & LEASES
		Quad City Bank and Trust (1)		$	2,090,856			$	2,107,605			$	2,005,770
		m2 Equipment Finance, LLC			353,259				363,897				341,041
		Cedar Rapids Bank and Trust			1,743,809				1,736,438				1,750,986
		Community State Bank			1,161,805				1,162,686				1,098,479
		Guaranty Bank			1,832,331				1,847,658				1,751,072
		TOTAL LOANS & LEASES / TOTAL DEPOSITS
		Quad City Bank and Trust (1)			95	%			100	%			102	%
		Cedar Rapids Bank and Trust			99	%			101	%			102	%
		Community State Bank			92	%			98	%			97	%
		Guaranty Bank			103	%			103	%			102	%
		TOTAL LOANS & LEASES / TOTAL ASSETS
		Quad City Bank and Trust (1)			82	%			82	%			82	%
		Cedar Rapids Bank and Trust			66	%			72	%			72	%
		Community State Bank			76	%			76	%			78	%
		Guaranty Bank			78	%			78	%			78	%
		ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT
		Quad City Bank and Trust (1)			1.49	%			1.49	%			1.50	%
		m2 Equipment Finance, LLC			4.11	%			3.86	%			3.52	%
		Cedar Rapids Bank and Trust			1.38	%			1.44	%			1.47	%
		Community State Bank			1.06	%			1.14	%			1.28	%
		Guaranty Bank			1.14	%			1.16	%			1.24	%
		RETURN ON AVERAGE ASSETS
		Quad City Bank and Trust (1)			0.76	%			0.88	%			0.97	%			0.81	%			1.00	%
		Cedar Rapids Bank and Trust			2.52	%			2.94	%			2.28	%			2.84	%			2.95	%
		Community State Bank			1.46	%			1.26	%			1.38	%			1.33	%			1.43	%
		Guaranty Bank			1.28	%			1.42	%			1.23	%			1.20	%			1.07	%
		NET INTEREST MARGIN PERCENTAGE (2)
		Quad City Bank and Trust (1)			3.50	%			3.39	%			3.37	%			3.40	%			3.36	%
		Cedar Rapids Bank and Trust			3.88	%			3.75	%			3.78	%			3.80	%			3.83	%
		Community State Bank			3.76	%			3.72	%			3.88	%			3.74	%			3.92	%
		Guaranty Bank (3)			3.12	%			2.99	%			3.06	%			3.03	%			3.22	%
		ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET
		INTEREST MARGIN, NET
		Cedar Rapids Bank and Trust		$	-			$	-			$	-			$	-			$	(8	)
		Community State Bank			(1	)			(1	)			(1	)			(3	)			69
		Guaranty Bank			496				301				572				1,194				1,537
		QCR Holdings, Inc. (4)			(32	)			(32	)			(32	)			(97	)			(97	)
(1	)	Quad City Bank and Trust amounts include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC is also presented separately for certain (applicable) measurements.
(2	)	Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(3	)	Guaranty Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.94% for the quarter ended September 30, 2024, 2.86% for the quarter ended June 30, 2024 and 2.97% for the quarter ended September 30, 2023.
(4	)	Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.

QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)
		As of
		September 30,				June 30,				March 31,				December 31,				September 30,
GAAP TO NON-GAAP RECONCILIATIONS		2024				2024				2024				2023				2023
		(dollars in thousands, except per share data)
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)
Stockholders' equity (GAAP)		$	976,620			$	936,319			$	907,342			$	886,596			$	828,383
Less: Intangible assets			150,347				151,468				152,158				152,848				153,564
Tangible common equity (non-GAAP)		$	826,273			$	784,851			$	755,184			$	733,748			$	674,819
Total assets (GAAP)		$	9,088,565			$	8,871,991			$	8,599,549			$	8,538,894			$	8,540,057
Less: Intangible assets			150,347				151,468				152,158				152,848				153,564
Tangible assets (non-GAAP)		$	8,938,218			$	8,720,523			$	8,447,391			$	8,386,046			$	8,386,493
Tangible common equity to tangible assets ratio (non-GAAP)			9.24	%			9.00	%			8.94	%			8.75	%			8.05	%
(1) This ratio is a non-GAAP financial measure. The Company's management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders' equity and total assets, which are the most directly comparable GAAP financial measures.

QCR Holding, Inc. Consolidated Financial Highlights (Unaudited)
GAAP TO NON-GAAP RECONCILIATIONS		For the Quarter Ended																				For the Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,						September 30,
ADJUSTED NET INCOME (1)		2024				2024				2024				2023				2023				2024						2023
		(dollars in thousands, except per share data)
Net income (GAAP)		$	27,785			$	29,114			$	26,726			$	32,855			$	25,121			$	83,625					$	80,703
Less non-core items (post-tax) (2):
Income:
Securities gains (losses), net			-				-				-				-				-				-						(356	)
Fair value gain (loss) on derivatives, net			(542	)			(145	)			(144	)			(460	)			(265	)			(830	)					(537	)
Total non-core income (non-GAAP)		$	(542	)		$	(145	)		$	(144	)		$	(460	)		$	(265	)		$	(830	)				$	(893	)
Expense:
Goodwill impairment			432				-				-				-				-				432						-
Post-acquisition compensation, transition and integration costs			-				-				-				-				-				-						164
Restructuring expense			1,544				-				-				-				-				1,544
Total non-core expense (non-GAAP)		$	1,976			$	-			$	-			$	-			$	-			$	1,976					$	164
Adjusted net income (non-GAAP) (1)		$	30,303			$	29,259			$	26,870			$	33,315			$	25,386			$	86,431					$	81,760
ADJUSTED EARNINGS PER COMMON SHARE (1)
Adjusted net income (non-GAAP) (from above)		$	30,303			$	29,259			$	26,870			$	33,315			$	25,386			$	86,431					$	81,760
Weighted average common shares outstanding			16,846,200				16,814,814				16,783,348				16,734,080				16,717,303				16,814,787						16,731,847
Weighted average common and common equivalent shares outstanding			16,982,400				16,921,854				16,910,675				16,875,952				16,847,951				16,938,309						16,863,203
Adjusted earnings per common share (non-GAAP):
Basic		$	1.80			$	1.74			$	1.60			$	1.99			$	1.52			$	5.14					$	4.89
Diluted		$	1.78			$	1.73			$	1.59			$	1.97			$	1.51			$	5.10					$	4.85
ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)
Adjusted net income (non-GAAP) (from above)		$	30,303			$	29,259			$	26,870			$	33,315			$	25,386			$	86,431					$	81,760
Average Assets		$	8,968,653			$	8,776,002			$	8,550,855			$	8,535,732			$	8,287,813			$	8,765,913					$	8,041,141
Adjusted return on average assets (annualized) (non-GAAP)			1.35	%			1.33	%			1.26	%			1.56	%			1.23	%			1.31	%					1.36	%
Adjusted return on average equity (annualized) (non-GAAP)			12.60	%			12.69	%			11.90	%			15.64	%			12.12	%			12.40	%					13.35	%
NET INTEREST MARGIN (TEY) (3)
Net interest income (GAAP)		$	59,722			$	56,163			$	54,699			$	55,736			$	55,255			$	170,584					$	165,270
Plus: Tax equivalent adjustment (4)			9,544				8,914				8,377				7,954				7,771				26,803						20,283
Net interest income - tax equivalent (Non-GAAP)		$	69,266			$	65,077			$	63,076			$	63,690			$	63,026			$	197,387					$	185,553
Less: Acquisition accounting net accretion			463				268				363				673				539				1,094						1,501
Adjusted net interest income		$	68,803			$	64,809			$	62,713			$	63,017			$	62,487			$	196,293					$	184,052
Average earning assets		$	8,183,196			$	7,999,044			$	7,807,720			$	7,631,035			$	7,573,785			$	7,997,334					$	7,369,420
Net interest margin (GAAP)			2.90	%			2.82	%			2.82	%			2.90	%			2.89	%			2.85	%					3.00	%
Net interest margin (TEY) (Non-GAAP)			3.37	%			3.27	%			3.25	%			3.32	%			3.31	%			3.30	%					3.37	%
Adjusted net interest margin (TEY) (Non-GAAP)			3.34	%			3.26	%			3.24	%			3.29	%			3.28	%			3.28	%					3.34	%
EFFICIENCY RATIO (5)
Noninterest expense (GAAP)		$	53,565			$	49,888			$	50,690			$	60,938			$	51,081			$	154,143					$	149,593
Net interest income (GAAP)		$	59,722			$	56,163			$	54,699			$	55,736			$	55,255			$	170,584					$	165,270
Noninterest income (GAAP)			27,157				30,889				26,858				47,729				26,593				84,904						84,955
Total income		$	86,879			$	87,052			$	81,557			$	103,465			$	81,848			$	255,488					$	250,225
Efficiency ratio (noninterest expense/total income) (Non-GAAP)			61.65	%			57.31	%			62.15	%			58.90	%			62.41	%			60.33	%					59.78	%
Adjusted efficiency ratio (core noninterest expense/core total income) (Non-GAAP)			58.45	%			57.19	%			62.01	%			58.57	%			62.15	%			59.16	%					59.43	%
(1) Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company's management believes that these measurements are important to investors as they exclude non-core or non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods.  In compliance with applicable rules of the SEC, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.
(2) Non-core or non-recurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.
(3) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(4) Net interest margin (TEY) is a non-GAAP financial measure. The Company's management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it's difficult to provide a more realistic run-rate for future periods.
(5) Efficiency ratio is a non-GAAP measure. The Company's management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue.   In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most  directly comparable GAAP financial measures.