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. | |||||||||||||||||||||||||||||||
