QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced
record quarterly net income of $32.9 million and diluted earnings
per share (“EPS”) of $1.95 for the fourth quarter of 2023, compared
to net income of $25.1 million and diluted EPS of $1.49 for the
third quarter of 2023. For the full year, the Company reported net
income of $113.6 million, or $6.73 per diluted share.
Adjusted net income (non-GAAP) and adjusted diluted EPS
(non-GAAP) for the fourth quarter of 2023 were $33.3 million and
$1.97, respectively. 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 fourth quarter of 2022, net income
and diluted EPS were $30.9 million and $1.81, respectively, and
adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP)
were $31.1 million and $1.83, respectively.
|
For the Quarter Ended |
|
December 31, |
September 30, |
December 31, |
$ in millions (except per
share data) |
2023 |
2023 |
2022 |
Net Income |
$ |
32.9 |
$ |
25.1 |
$ |
30.9 |
Diluted EPS |
$ |
1.95 |
$ |
1.49 |
$ |
1.81 |
Adjusted Net Income
(non-GAAP)* |
$ |
33.3 |
$ |
25.4 |
$ |
31.1 |
Adjusted Diluted EPS
(non-GAAP)* |
$ |
1.97 |
$ |
1.51 |
$ |
1.83 |
*Adjusted non-GAAP measurements of financial performance exclude
non-core and/or nonrecurring income and expense items that
management believes are not reflective of the anticipated future
operation of the Company’s business. The Company believes these
measurements provide a better comparison for analysis and may
provide a better indicator of future performance. See GAAP to
non-GAAP reconciliations.
“We are pleased to deliver record fourth quarter and full year
results highlighted by significant fee income and robust loan
growth,” said Larry J. Helling, Chief Executive Officer. “In
addition, we completed our first two securitizations of low-income
housing tax credit loans, grew core deposits by 6%, and maintained
our strong asset quality.”
“We enter 2024 with a solid deposit and loan pipeline, a strong
balance sheet, excellent credit quality and well-managed expenses.
We remain focused on building our franchise through relationship
banking and executing on our differentiated business model, all
with the view of delivering attractive returns to our
shareholders,” said Mr. Helling.
Net Interest Income Grew to $55.7 Million
and NIM Expanded
Net interest income for the fourth quarter of 2023 totaled $55.7
million, an increase of $0.5 million from the third quarter.
Acquisition-related net accretion totaled $673 thousand for the
fourth quarter of 2023, compared to $539 thousand in the third
quarter. Net interest income was $65.2 million for the fourth
quarter of 2022.
In the fourth quarter of 2023, net interest margin (“NIM”) was
2.90% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP)
was 3.32%, up from 2.89% and 3.31% in the prior quarter,
respectively. Adjusted NIM TEY (non-GAAP) of 3.29%, was also up
from 3.28% in the third quarter.
“Our adjusted NIM on a tax equivalent yield basis improved by
one basis point on a linked-quarter basis to 3.29% and was above
the midpoint of our guidance range,” said Todd A. Gipple, President
and Chief Financial Officer. “During the quarter, our loan and
investment yields continued to expand and we experienced a more
modest increase in our cost of funds with a slowing in the shift of
the composition of our deposits from noninterest and lower beta
deposits to higher beta deposits. We are pleased to see continued
stabilization in our deposit mix and the expansion of our NIM.”
Noninterest Income of $47.7 Million,
Including a Record $37.0 Million of Capital Markets
Revenue
Noninterest income for the fourth quarter of 2023 totaled $47.7
million, up significantly from $26.6 million for the third quarter
of 2023. The Company generated a record $37.0 million of capital
markets revenue in the quarter, up from $15.6 million in the prior
quarter. Wealth management revenue was $4.1 million for the
quarter, up from $3.8 million in the prior quarter.
“Capital markets revenue surged late in the fourth quarter and
was $37 million for the quarter, achieving a total of $92 million
to close out the year,” added Mr. Gipple. “Our clients took
advantage of the significant decrease in long-term interest rates
late in the quarter to lock-in attractive long-term financing
terms. Capital markets revenue from swap fees continues to benefit
from the strong demand for affordable housing. Even with the strong
results in the fourth quarter, our LIHTC lending and capital
markets revenue pipelines remain healthy. As a result, we are
increasing our capital markets revenue guidance for the next twelve
months to be in a range of $50 to $60 million.”
Noninterest Expenses of $60.9 Million
Impacted by Strong Capital Markets Outperformance
Noninterest expense for the fourth quarter of 2023 totaled $60.9
million, compared to $51.1 million for the third quarter of 2023
and $49.7 million for the fourth quarter of 2022. The
linked-quarter increase was primarily due to higher incentive-based
compensation related to our record fourth quarter and full year
performance.
Continued Strong Loan Growth
During the fourth quarter of 2023, the Company’s loans and
leases held for investment grew $213.4 million to a total of $6.5
billion, or 13% on an annualized basis. For the full year, total
loans and leases grew $669.5 million, or 11%, when excluding the
$265 million in loan securitizations that we completed in the
fourth quarter.
“Our strong performance is a testament to our differentiated
relationship-based community banking model as well as the
underlying economic resiliency across our markets,” added Mr.
Helling. “Given our current pipeline and the ongoing strength of
our markets, we are targeting loan growth for the full year 2024
between 8% and 10%, prior to the loan securitizations that we have
planned for 2024.”
Asset Quality Remains
Excellent
Nonperforming assets (“NPAs”) totaled $34.2 million at the end
of the fourth quarter, a slight improvement from $34.7 million at
the end of the third quarter. The ratio of NPAs to total assets
improved to 0.40% on December 31, 2023, compared to 0.41% on
September 30, 2023. In addition, the Company’s criticized loans and
classified loans to total loans and leases on December 31, 2023
also improved to 2.93% and 1.03%, respectively, as compared to
2.98% and 1.05% as of September 30, 2023.
The Company recorded a total provision for credit losses of $5.2
million during the quarter which included $2.5 million of provision
for loans and leases and $2.7 million of provision for unfunded
commitments. The provision for credit losses on unfunded
commitments was driven by the surge in commitments in our LIHTC
lending business. As of December 31, 2023, the allowance for credit
losses to total loans/leases held for investment was 1.33%.
Stable Core Deposits and Increased
Liquidity
During the fourth quarter of 2023, the Company’s core deposits,
which exclude brokered deposits, decreased slightly by $4.2 million
in the fourth quarter, but grew by $346.0 million, or 6%, for the
full year. Our Correspondent Bank deposit portfolio typically falls
temporarily in the fourth quarter as our clients position their
balance sheets at year-end. Total Correspondent Bank deposits
declined 9% at quarter-end and have since rebounded, increasing
$188 million, or 35%, by mid-January.
Total uninsured and uncollateralized deposits remain very low at
18% of total deposits as of the end of the fourth quarter, as
compared to 20% as of the end of the third quarter. The Company
maintained approximately $3.1 billion of available liquidity
sources at year-end, which includes $1.2 billion of immediately
available liquidity.
Continued Strong Capital
Levels
As of December 31, 2023, the Company’s total risk-based capital
ratio was 14.15%, the common equity tier 1 ratio was 9.57% and the
tangible common equity to tangible assets ratio (non-GAAP) was
8.75%. By comparison, these respective ratios were 14.48%, 9.68%
and 8.05% as of September 30, 2023. The Company remains focused on
growing capital and targeting capital levels in the top quartile of
the Company’s peer group.
The Company’s tangible book value per share (non-GAAP) increased
by $3.48, or 35% annualized during the fourth quarter. Accumulated
other comprehensive income (“AOCI”) increased $25.4 million during
the quarter due to an increase in the value of the Company’s
available for sale securities portfolio and certain derivatives
resulting from the change in long-term interest rates during the
quarter. In addition, the combination of strong earnings and a
modest dividend contributed to the improvement in tangible book
value per share (non-GAAP).
Conference Call Details
The Company will host an earnings call/webcast tomorrow, January
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 January 31, 2024.
The replay access information is 877-344-7529 (international
412-317-0088); access code 1087284. A webcast of the teleconference
can be accessed on the Company’s News and Events page at
www.qcrh.com. An archived version of the webcast will be available
at the same location shortly after the live event has ended.
About UsQCR Holdings, Inc., headquartered in
Moline, Illinois, is a relationship-driven, multi-bank holding
company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des
Moines/Ankeny and Springfield communities through its wholly owned
subsidiary banks. The banks provide full-service commercial and
consumer banking and trust and wealth management services. Quad
City Bank & Trust Company, based in Bettendorf, Iowa, commenced
operations in 1994, Cedar Rapids Bank & Trust Company, based in
Cedar Rapids, Iowa, commenced operations in 2001, Community State
Bank, based in Ankeny, Iowa, was acquired by the Company in 2016,
Springfield First Community Bank, based in Springfield, Missouri,
was acquired by the Company in 2018, and Guaranty Bank, also based
in Springfield, Missouri, was acquired by the Company and merged
with Springfield First Community Bank on April 1, 2022, with the
combined entity operating under the Guaranty Bank name.
Additionally, the Company serves the Waterloo/Cedar Falls, Iowa
community through Community Bank & Trust, a division of Cedar
Rapids Bank & Trust Company. Quad City Bank & Trust Company
offers equipment loans and leases to businesses through its wholly
owned subsidiary, m2 Equipment Finance, LLC, based in Brookfield,
Wisconsin, and also provides correspondent banking services. The
Company has 36 locations in Iowa, Missouri, Wisconsin and Illinois.
As of December 31, 2023, the Company had $8.5 billion in assets,
$6.5 billion in loans and $6.5 billion in deposits. For additional
information, please visit the Company’s website at
www.qcrh.com.
Special Note Concerning Forward-Looking
Statements. This document contains, and future oral and
written statements of the Company and its management may contain,
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 with respect to the
financial condition, results of operations, plans, objectives,
future performance and business of the Company. Forward-looking
statements, which may be based upon beliefs, expectations and
assumptions of the Company’s management and on information
currently available to management, are generally identifiable by
the use of words such as “believe,” “expect,” “anticipate,” “bode,”
“predict,” “suggest,” “project,” “appear,” “plan,” “intend,”
“estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,”
“likely,” “might,” “potential,” “continue,” “annualized,” “target,”
“outlook,” as well as the negative forms of those words, or other
similar expressions. Additionally, all statements in this document,
including forward-looking statements, speak only as of the date
they are made, and the Company undertakes no obligation to update
any statement in light of new information or future events.
A number of factors, many of which are beyond the ability of the
Company to control or predict, could cause actual results to differ
materially from those in its forward-looking statements. These
factors include, among others, the following: (i) the strength of
the local, state, national and international economies(including
effects of inflationary pressures and supply chain constraints);
(ii) the economic impact of any future terrorist threats and
attacks, widespread disease or pandemics (including the COVID-19
pandemic in the United States), acts of war or other threats
thereof (including the Israeli-Palestinian conflict and the Russian
invasion of Ukraine), or other adverse external events that could
cause economic deterioration or instability in credit markets, and
the response of the local, state and national governments to any
such adverse external events; (iii) changes in accounting policies
and practices, as may be adopted by state and federal regulatory
agencies, the FASB or the PCAOB; (iv) changes in local, state and
federal laws, regulations and governmental policies concerning the
Company’s general business and any changes in response to the
recent failures of other banks; (v) changes in interest rates and
prepayment rates of the Company’s assets (including the impact of
LIBOR phase-out and the recent potential additional rate increases
by the Federal Reserve); (vi) increased competition in the
financial services sector, including from non-bank competitors such
as credit unions and “fintech” companies, and the inability to
attract new customers; (vii) changes in technology and the ability
to develop and maintain secure and reliable electronic systems;
(viii) unexpected results of acquisitions, which may include
failure to realize the anticipated benefits of acquisitions and the
possibility that transaction costs may be greater than anticipated;
(ix) the loss of key executives or employees; (x) changes in
consumer spending; (xi) unexpected outcomes of existing or new
litigation involving the Company; (xii) the economic impact of
exceptional weather occurrences such as tornadoes, floods and
blizzards; (xiii) fluctuations in the value of securities held in
our securities portfolio; (xiv) concentrations within our loan
portfolio, large loans to certain borrowers, and large deposits
from certain clients; (xv) the concentration of large deposits from
certain clients who have balances above current FDIC insurance
limits and may withdraw deposits to diversity their exposure; (xvi)
the level of non-performing assets on our balance sheets; (xvii)
interruptions involving our information technology and
communications systems or third-party servicers; (xviii) breaches
or failures of our information security controls or
cybersecurity-related incidents, and (xix) 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. GipplePresidentChief Financial Officer(309)
743-7745tgipple@qcrh.com
QCR Holding,
Inc. |
Consolidated
Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
As of |
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
CONDENSED BALANCE SHEET |
|
|
|
|
|
|
|
|
|
|
|
Cash and due
from banks |
$ |
97,123 |
|
$ |
104,265 |
|
$ |
84,084 |
|
$ |
64,295 |
|
$ |
59,723 |
|
Federal
funds sold and interest-bearing deposits |
|
140,369 |
|
|
80,650 |
|
|
175,012 |
|
|
253,997 |
|
|
124,270 |
|
Securities,
net of allowance for credit losses |
|
1,005,528 |
|
|
896,394 |
|
|
882,888 |
|
|
877,446 |
|
|
928,102 |
|
Loans
receivable held for sale (1) |
|
2,594 |
|
|
278,893 |
|
|
295,057 |
|
|
140,633 |
|
|
1,480 |
|
Loans/leases
receivable held for investment |
|
6,540,822 |
|
|
6,327,414 |
|
|
6,084,263 |
|
|
6,049,389 |
|
|
6,137,391 |
|
Allowance
for credit losses |
|
(87,200 |
) |
|
(87,669 |
) |
|
(85,797 |
) |
|
(86,573 |
) |
|
(87,706 |
) |
Intangibles |
|
13,821 |
|
|
14,537 |
|
|
15,228 |
|
|
15,993 |
|
|
16,759 |
|
Goodwill |
|
139,027 |
|
|
139,027 |
|
|
139,027 |
|
|
138,474 |
|
|
137,607 |
|
Derivatives |
|
188,978 |
|
|
291,295 |
|
|
170,294 |
|
|
130,350 |
|
|
177,631 |
|
Other
assets |
|
497,832 |
|
|
495,251 |
|
|
466,617 |
|
|
452,900 |
|
|
453,580 |
|
Total assets |
$ |
8,538,894 |
|
$ |
8,540,057 |
|
$ |
8,226,673 |
|
$ |
8,036,904 |
|
$ |
7,948,837 |
|
|
|
|
|
|
|
Total
deposits |
$ |
6,514,005 |
|
$ |
6,494,852 |
|
$ |
6,606,720 |
|
$ |
6,501,663 |
|
$ |
5,984,217 |
|
Total
borrowings |
|
718,295 |
|
|
712,126 |
|
|
418,368 |
|
|
417,480 |
|
|
825,894 |
|
Derivatives |
|
214,098 |
|
|
320,220 |
|
|
195,841 |
|
|
150,401 |
|
|
200,701 |
|
Other
liabilities |
|
205,900 |
|
|
184,476 |
|
|
183,055 |
|
|
165,866 |
|
|
165,301 |
|
Total
stockholders' equity |
|
886,596 |
|
|
828,383 |
|
|
822,689 |
|
|
801,494 |
|
|
772,724 |
|
Total liabilities and stockholders' equity |
$ |
8,538,894 |
|
$ |
8,540,057 |
|
$ |
8,226,673 |
|
$ |
8,036,904 |
|
$ |
7,948,837 |
|
|
|
|
|
|
|
ANALYSIS OF LOAN PORTFOLIO |
|
|
|
|
|
Loan/lease
mix: (2) |
|
|
|
|
|
Commercial and industrial - revolving |
$ |
325,243 |
|
$ |
299,588 |
|
$ |
304,617 |
|
$ |
307,612 |
|
$ |
296,869 |
|
Commercial and industrial - other |
|
1,390,068 |
|
|
1,381,967 |
|
|
1,308,853 |
|
|
1,322,384 |
|
|
1,371,590 |
|
Commercial and industrial - other - LIHTC |
|
91,710 |
|
|
105,601 |
|
|
93,700 |
|
|
97,947 |
|
|
80,103 |
|
Total
commercial and industrial |
|
1,807,021 |
|
|
1,787,156 |
|
|
1,707,170 |
|
|
1,727,943 |
|
|
1,748,562 |
|
Commercial real estate, owner occupied |
|
607,365 |
|
|
610,618 |
|
|
609,717 |
|
|
616,922 |
|
|
629,367 |
|
Commercial real estate, non-owner occupied |
|
1,008,892 |
|
|
955,552 |
|
|
963,814 |
|
|
982,716 |
|
|
963,239 |
|
Construction and land development |
|
477,424 |
|
|
472,695 |
|
|
437,682 |
|
|
448,261 |
|
|
448,986 |
|
Construction and land development - LIHTC |
|
943,101 |
|
|
921,359 |
|
|
870,084 |
|
|
759,924 |
|
|
743,075 |
|
Multi-family |
|
284,721 |
|
|
282,541 |
|
|
280,418 |
|
|
229,370 |
|
|
236,043 |
|
Multi-family - LIHTC |
|
711,422 |
|
|
874,439 |
|
|
820,376 |
|
|
740,500 |
|
|
727,760 |
|
Direct financing leases |
|
31,164 |
|
|
34,401 |
|
|
32,937 |
|
|
35,373 |
|
|
31,889 |
|
1-4 family real estate |
|
544,971 |
|
|
539,931 |
|
|
535,405 |
|
|
532,491 |
|
|
499,529 |
|
Consumer |
|
127,335 |
|
|
127,615 |
|
|
121,717 |
|
|
116,522 |
|
|
110,421 |
|
Total
loans/leases |
$ |
6,543,416 |
|
$ |
6,606,307 |
|
$ |
6,379,320 |
|
$ |
6,190,022 |
|
$ |
6,138,871 |
|
Less allowance for credit losses |
|
87,200 |
|
|
87,669 |
|
|
85,797 |
|
|
86,573 |
|
|
87,706 |
|
Net
loans/leases |
$ |
6,456,216 |
|
$ |
6,518,638 |
|
$ |
6,293,523 |
|
$ |
6,103,449 |
|
$ |
6,051,165 |
|
|
|
|
|
|
|
ANALYSIS OF SECURITIES PORTFOLIO |
|
|
|
|
|
Securities
mix: |
|
|
|
|
|
U.S. government sponsored agency securities |
$ |
14,973 |
|
$ |
16,002 |
|
$ |
18,942 |
|
$ |
19,320 |
|
$ |
16,981 |
|
Municipal securities |
|
853,645 |
|
|
764,017 |
|
|
743,608 |
|
|
731,689 |
|
|
779,450 |
|
Residential mortgage-backed and related securities |
|
59,196 |
|
|
57,946 |
|
|
60,958 |
|
|
63,104 |
|
|
66,215 |
|
Asset backed securities |
|
15,423 |
|
|
16,326 |
|
|
17,393 |
|
|
17,967 |
|
|
18,728 |
|
Other securities |
|
41,115 |
|
|
43,272 |
|
|
43,156 |
|
|
46,535 |
|
|
46,908 |
|
Trading securities |
|
22,368 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
Total
securities (3) |
$ |
1,006,720 |
|
$ |
897,563 |
|
$ |
884,057 |
|
$ |
878,615 |
|
$ |
928,282 |
|
Less allowance for credit losses |
|
1,192 |
|
|
1,169 |
|
|
1,169 |
|
|
1,169 |
|
|
180 |
|
Net
securities |
$ |
1,005,528 |
|
$ |
896,394 |
|
$ |
882,888 |
|
$ |
877,446 |
|
$ |
928,102 |
|
|
|
|
|
|
|
ANALYSIS OF DEPOSITS |
|
|
|
|
|
Deposit
mix: |
|
|
|
|
|
Noninterest-bearing demand deposits |
$ |
1,038,689 |
|
$ |
1,027,791 |
|
$ |
1,101,605 |
|
$ |
1,189,858 |
|
$ |
1,262,981 |
|
Interest-bearing demand deposits |
|
4,338,390 |
|
|
4,416,725 |
|
|
4,374,847 |
|
|
4,033,193 |
|
|
3,875,497 |
|
Time deposits |
|
851,950 |
|
|
788,692 |
|
|
765,801 |
|
|
679,946 |
|
|
744,593 |
|
Brokered deposits |
|
284,976 |
|
|
261,644 |
|
|
364,467 |
|
|
598,666 |
|
|
101,146 |
|
Total deposits |
$ |
6,514,005 |
|
$ |
6,494,852 |
|
$ |
6,606,720 |
|
$ |
6,501,663 |
|
$ |
5,984,217 |
|
|
|
|
|
|
|
ANALYSIS OF BORROWINGS |
|
|
|
|
|
Borrowings
mix: |
|
|
|
|
|
Term FHLB advances |
$ |
135,000 |
|
$ |
135,000 |
|
$ |
135,000 |
|
$ |
135,000 |
|
$ |
- |
|
Overnight FHLB advances |
|
300,000 |
|
|
295,000 |
|
|
- |
|
|
- |
|
|
415,000 |
|
Other short-term borrowings |
|
1,500 |
|
|
470 |
|
|
1,850 |
|
|
1,100 |
|
|
129,630 |
|
Subordinated notes |
|
233,064 |
|
|
232,958 |
|
|
232,852 |
|
|
232,746 |
|
|
232,662 |
|
Junior subordinated debentures |
|
48,731 |
|
|
48,698 |
|
|
48,666 |
|
|
48,634 |
|
|
48,602 |
|
Total borrowings |
$ |
718,295 |
|
$ |
712,126 |
|
$ |
418,368 |
|
$ |
417,480 |
|
$ |
825,894 |
|
|
|
|
|
|
|
(1) Loans with a fair
value of $0 million, $278.0 million, $291.0 million and $139.2
million have been identified for securitization and are included in
LHFS at December 31, 2023, September 30, 2023, June 30, 2023 and
March 31, 2023 respectively. |
(2) Loan categories
with significant LIHTC loan balances have been broken out
separately. Total LIHTC balances within the loan/lease portfolio
are $1.8 billion as of December 31, 2023. |
(3) As of December 31,
2023, trading securities included two securities purchased from
Freddie Mac following the loan sale and securitization of $130
million of tax exempt LIHTC loans and $135 million of taxable LIHTC
loans sponsored by Freddie Mac in 2023. |
QCR Holding,
Inc. |
Consolidated
Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
For the Quarter Ended |
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
(dollars in
thousands, except per share data) |
|
|
|
|
|
|
INCOME STATEMENT |
|
|
|
|
|
Interest
income |
$ |
112,248 |
|
$ |
108,568 |
|
$ |
98,377 |
$ |
94,217 |
|
$ |
94,037 |
|
Interest
expense |
|
56,512 |
|
|
53,313 |
|
|
45,172 |
|
37,407 |
|
|
28,819 |
|
Net interest
income |
|
55,736 |
|
|
55,255 |
|
|
53,205 |
|
56,810 |
|
|
65,218 |
|
Provision
for credit losses |
|
5,199 |
|
|
3,806 |
|
|
3,606 |
|
3,928 |
|
|
- |
|
Net
interest income after provision for credit losses |
$ |
50,537 |
|
$ |
51,449 |
|
$ |
49,599 |
$ |
52,882 |
|
$ |
65,218 |
|
|
|
|
|
|
|
Trust
fees |
$ |
3,084 |
|
$ |
2,863 |
|
$ |
2,844 |
$ |
2,906 |
|
$ |
2,644 |
|
Investment
advisory and management fees |
|
1,052 |
|
|
947 |
|
|
986 |
|
879 |
|
|
918 |
|
Deposit
service fees |
|
2,008 |
|
|
2,107 |
|
|
2,034 |
|
2,028 |
|
|
2,142 |
|
Gains on
sales of residential real estate loans, net |
|
323 |
|
|
476 |
|
|
500 |
|
312 |
|
|
468 |
|
Gains on
sales of government guaranteed portions of loans, net |
|
24 |
|
|
- |
|
|
- |
|
30 |
|
|
50 |
|
Capital
markets revenue |
|
36,956 |
|
|
15,596 |
|
|
22,490 |
|
17,023 |
|
|
11,338 |
|
Securities
gains (losses), net |
|
- |
|
|
- |
|
|
12 |
|
(463 |
) |
|
- |
|
Earnings on
bank-owned life insurance |
|
832 |
|
|
1,807 |
|
|
838 |
|
707 |
|
|
755 |
|
Debit card
fees |
|
1,561 |
|
|
1,584 |
|
|
1,589 |
|
1,466 |
|
|
1,500 |
|
Correspondent banking fees |
|
465 |
|
|
450 |
|
|
356 |
|
391 |
|
|
257 |
|
Loan related
fee income |
|
845 |
|
|
800 |
|
|
770 |
|
651 |
|
|
614 |
|
Fair value
gain (loss) on derivatives |
|
(582 |
) |
|
(336 |
) |
|
83 |
|
(427 |
) |
|
(267 |
) |
Other |
|
1,161 |
|
|
299 |
|
|
18 |
|
339 |
|
|
800 |
|
Total noninterest income |
$ |
47,729 |
|
$ |
26,593 |
|
$ |
32,520 |
$ |
25,842 |
|
$ |
21,219 |
|
|
|
|
|
|
|
Salaries and
employee benefits |
$ |
41,059 |
|
$ |
32,098 |
|
$ |
31,459 |
$ |
32,003 |
|
$ |
32,594 |
|
Occupancy
and equipment expense |
|
6,789 |
|
|
6,228 |
|
|
6,100 |
|
5,914 |
|
|
6,027 |
|
Professional
and data processing fees |
|
4,223 |
|
|
4,456 |
|
|
4,078 |
|
3,514 |
|
|
3,769 |
|
Acquisition
costs |
|
- |
|
|
- |
|
|
- |
|
- |
|
|
(424 |
) |
Post-acquisition compensation, transition and integration
costs |
|
- |
|
|
- |
|
|
- |
|
207 |
|
|
668 |
|
FDIC
insurance, other insurance and regulatory fees |
|
2,115 |
|
|
1,721 |
|
|
1,927 |
|
1,374 |
|
|
1,605 |
|
Loan/lease
expense |
|
834 |
|
|
826 |
|
|
652 |
|
556 |
|
|
411 |
|
Net cost of
(income from) and gains/losses on operations of other real
estate |
|
38 |
|
|
3 |
|
|
- |
|
(67 |
) |
|
(117 |
) |
Advertising
and marketing |
|
1,641 |
|
|
1,429 |
|
|
1,735 |
|
1,237 |
|
|
1,562 |
|
Communication and data connectivity |
|
449 |
|
|
478 |
|
|
471 |
|
665 |
|
|
587 |
|
Supplies |
|
333 |
|
|
335 |
|
|
281 |
|
305 |
|
|
337 |
|
Bank service
charges |
|
761 |
|
|
605 |
|
|
621 |
|
605 |
|
|
563 |
|
Correspondent banking expense |
|
300 |
|
|
232 |
|
|
221 |
|
210 |
|
|
210 |
|
Intangibles
amortization |
|
716 |
|
|
691 |
|
|
765 |
|
766 |
|
|
787 |
|
Payment card
processing |
|
836 |
|
|
733 |
|
|
542 |
|
545 |
|
|
599 |
|
Trust
expense |
|
413 |
|
|
432 |
|
|
337 |
|
214 |
|
|
166 |
|
Other |
|
431 |
|
|
814 |
|
|
538 |
|
737 |
|
|
353 |
|
Total noninterest expense |
$ |
60,938 |
|
$ |
51,081 |
|
$ |
49,727 |
$ |
48,785 |
|
$ |
49,697 |
|
|
|
|
|
|
|
Net
income before income taxes |
$ |
37,328 |
|
$ |
26,961 |
|
$ |
32,392 |
$ |
29,939 |
|
$ |
36,740 |
|
Federal and
state income tax expense |
|
4,473 |
|
|
1,840 |
|
|
3,967 |
|
2,782 |
|
|
5,834 |
|
Net
income |
$ |
32,855 |
|
$ |
25,121 |
|
$ |
28,425 |
$ |
27,157 |
|
$ |
30,906 |
|
|
|
|
|
|
|
Basic EPS |
$ |
1.96 |
|
$ |
1.50 |
|
$ |
1.70 |
$ |
1.62 |
|
$ |
1.83 |
|
Diluted EPS |
$ |
1.95 |
|
$ |
1.49 |
|
$ |
1.69 |
$ |
1.60 |
|
$ |
1.81 |
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
16,734,080 |
|
|
16,717,303 |
|
|
16,701,950 |
|
16,776,289 |
|
|
16,855,973 |
|
Weighted
average common and common equivalent shares outstanding |
|
16,875,952 |
|
|
16,847,951 |
|
|
16,799,527 |
|
16,942,132 |
|
|
17,047,976 |
|
QCR Holding,
Inc. |
Consolidated
Financial Highlights |
(Unaudited) |
|
|
|
|
|
For the Year Ended |
|
December 31, |
|
December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
(dollars in
thousands, except per share data) |
|
|
|
|
INCOME STATEMENT |
|
|
|
Interest
income |
$ |
413,410 |
|
|
$ |
292,571 |
|
Interest
expense |
|
192,404 |
|
|
|
61,451 |
|
Net interest
income |
|
221,006 |
|
|
|
231,120 |
|
Provision
for credit losses (1) |
|
16,539 |
|
|
|
8,284 |
|
Net
interest income after provision for credit losses |
$ |
204,467 |
|
|
$ |
222,836 |
|
|
|
|
|
Trust
fees |
$ |
11,697 |
|
|
$ |
10,641 |
|
Investment
advisory and management fees |
|
3,864 |
|
|
|
3,858 |
|
Deposit
service fees |
|
8,177 |
|
|
|
8,134 |
|
Gains on
sales of residential real estate loans, net |
|
1,611 |
|
|
|
2,411 |
|
Gains on
sales of government guaranteed portions of loans, net |
|
54 |
|
|
|
119 |
|
Capital
markets revenue |
|
92,065 |
|
|
|
41,309 |
|
Securities
losses, net |
|
(451 |
) |
|
|
- |
|
Earnings on
bank-owned life insurance |
|
4,184 |
|
|
|
2,056 |
|
Debit card
fees |
|
6,200 |
|
|
|
5,459 |
|
Correspondent banking fees |
|
1,662 |
|
|
|
967 |
|
Loan related
fee income |
|
3,066 |
|
|
|
2,428 |
|
Fair value
gain (loss) on derivatives |
|
(1,262 |
) |
|
|
1,975 |
|
Other |
|
1,817 |
|
|
|
1,372 |
|
Total noninterest income |
$ |
132,684 |
|
|
$ |
80,729 |
|
|
|
|
|
Salaries and
employee benefits |
$ |
136,619 |
|
|
$ |
115,368 |
|
Occupancy
and equipment expense |
|
25,031 |
|
|
|
21,975 |
|
Professional
and data processing fees |
|
16,271 |
|
|
|
16,282 |
|
Acquisition
costs |
|
- |
|
|
|
3,715 |
|
Post-acquisition compensation, transition and integration
costs |
|
207 |
|
|
|
5,526 |
|
FDIC
insurance, other insurance and regulatory fees |
|
7,137 |
|
|
|
5,806 |
|
Loan/lease
expense |
|
2,868 |
|
|
|
1,829 |
|
Net cost of
(income from) and gains/losses on operations of other real
estate |
|
(26 |
) |
|
|
(40 |
) |
Advertising
and marketing |
|
6,042 |
|
|
|
4,958 |
|
Communication and data connectivity |
|
2,063 |
|
|
|
2,213 |
|
Supplies |
|
1,254 |
|
|
|
1,109 |
|
Bank service
charges |
|
2,592 |
|
|
|
2,282 |
|
Correspondent banking expense |
|
963 |
|
|
|
840 |
|
Intangibles
amortization |
|
2,938 |
|
|
|
2,854 |
|
Payment card
processing |
|
2,656 |
|
|
|
1,964 |
|
Trust
expense |
|
1,396 |
|
|
|
775 |
|
Other |
|
2,520 |
|
|
|
2,560 |
|
Total noninterest expense |
$ |
210,531 |
|
|
$ |
190,016 |
|
|
|
|
|
Net
income before income taxes |
$ |
126,620 |
|
|
$ |
113,549 |
|
Federal and
state income tax expense |
|
13,062 |
|
|
|
14,483 |
|
Net
income |
$ |
113,558 |
|
|
$ |
99,066 |
|
|
|
|
|
Basic EPS |
$ |
6.79 |
|
|
$ |
5.94 |
|
Diluted EPS |
$ |
6.73 |
|
|
$ |
5.87 |
|
|
|
|
|
Weighted
average common shares outstanding |
|
16,732,406 |
|
|
|
16,681,844 |
|
Weighted
average common and common equivalent shares outstanding |
|
16,866,391 |
|
|
|
16,890,007 |
|
|
|
|
|
(1) Provision for credit losses for the year ended December 31,
2022 included $11.0 million related to the acquired Guaranty Bank
non-PCD loans and $1.4 million related to acquired Guaranty Bank
OBS exposures. |
QCR Holding, Inc. |
Consolidated Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
As of and for the Quarter Ended |
|
For the Year Ended |
|
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
December 31, |
December 31, |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
COMMON SHARE DATA |
|
|
|
|
|
|
|
|
Common shares outstanding |
|
16,749,254 |
|
|
16,731,646 |
|
|
16,713,853 |
|
|
16,713,775 |
|
|
16,795,942 |
|
|
|
|
Book value per common share (1) |
$ |
52.93 |
|
$ |
49.51 |
|
$ |
49.22 |
|
$ |
47.95 |
|
$ |
46.01 |
|
|
|
|
Tangible book value per common share (Non-GAAP) (2) |
$ |
43.81 |
|
$ |
40.33 |
|
$ |
39.99 |
|
$ |
38.71 |
|
$ |
36.82 |
|
|
|
|
Closing stock price |
$ |
58.39 |
|
$ |
48.52 |
|
$ |
41.03 |
|
$ |
43.91 |
|
$ |
49.64 |
|
|
|
|
Market capitalization |
$ |
977,989 |
|
$ |
811,819 |
|
$ |
685,769 |
|
$ |
733,902 |
|
$ |
833,751 |
|
|
|
|
Market price / book value |
|
110.31 |
% |
|
98.00 |
% |
|
83.36 |
% |
|
91.57 |
% |
|
107.90 |
% |
|
|
|
Market price / tangible book value |
|
133.29 |
% |
|
120.30 |
% |
|
102.59 |
% |
|
113.43 |
% |
|
134.83 |
% |
|
|
|
Earnings per common share (basic) LTM (3) |
$ |
6.78 |
|
$ |
6.65 |
|
$ |
6.89 |
|
$ |
6.06 |
|
$ |
5.95 |
|
|
|
|
Price earnings ratio LTM (3) |
|
8.61 x |
|
|
7.30 x |
|
|
5.96 x |
|
|
7.24 x |
|
|
8.35 x |
|
|
|
|
TCE / TA (Non-GAAP) (4) |
|
8.75 |
% |
|
8.05 |
% |
|
8.28 |
% |
|
8.21 |
% |
|
7.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS'
EQUITY |
|
|
|
|
Beginning balance |
$ |
828,383 |
|
$ |
822,689 |
|
$ |
801,494 |
|
$ |
772,724 |
|
$ |
737,072 |
|
|
|
|
Net income |
|
32,855 |
|
|
25,121 |
|
|
28,425 |
|
|
27,157 |
|
|
30,906 |
|
|
|
|
Other comprehensive income (loss), net of tax |
|
25,363 |
|
|
(19,415 |
) |
|
(6,336 |
) |
|
9,325 |
|
|
9,959 |
|
|
|
|
Common stock cash dividends declared |
|
(1,004 |
) |
|
(1,003 |
) |
|
(1,003 |
) |
|
(1,010 |
) |
|
(1,013 |
) |
|
|
|
Repurchase and cancellation of shares of common stock as a result
of a share repurchase program |
|
- |
|
|
- |
|
|
(967 |
) |
|
(7,719 |
) |
|
(5,037 |
) |
|
|
|
Other (5) |
|
999 |
|
|
991 |
|
|
1,076 |
|
|
1,017 |
|
|
837 |
|
|
|
|
Ending balance |
$ |
886,596 |
|
$ |
828,383 |
|
$ |
822,689 |
|
$ |
801,494 |
|
$ |
772,724 |
|
|
|
|
|
|
|
|
|
|
|
|
|
REGULATORY CAPITAL RATIOS (6): |
|
|
|
|
|
|
|
|
Total risk-based capital ratio |
|
14.15 |
% |
|
14.48 |
% |
|
14.64 |
% |
|
14.64 |
% |
|
14.28 |
% |
|
|
|
Tier 1 risk-based capital ratio |
|
10.16 |
% |
|
10.30 |
% |
|
10.34 |
% |
|
10.23 |
% |
|
9.95 |
% |
|
|
|
Tier 1 leverage capital ratio |
|
10.03 |
% |
|
9.92 |
% |
|
10.06 |
% |
|
9.73 |
% |
|
9.61 |
% |
|
|
|
Common equity tier 1 ratio |
|
9.57 |
% |
|
9.68 |
% |
|
9.70 |
% |
|
9.57 |
% |
|
9.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
KEY PERFORMANCE RATIOS AND OTHER METRICS |
|
|
|
|
|
|
|
|
Return on average assets (annualized) |
|
1.53 |
% |
|
1.21 |
% |
|
1.44 |
% |
|
1.37 |
% |
|
1.58 |
% |
|
|
1.39 |
% |
|
1.37 |
% |
Return on average total equity (annualized) |
|
15.35 |
% |
|
11.95 |
% |
|
13.97 |
% |
|
13.67 |
% |
|
16.32 |
% |
|
|
13.78 |
% |
|
13.24 |
% |
Net interest margin |
|
2.90 |
% |
|
2.89 |
% |
|
2.93 |
% |
|
3.18 |
% |
|
3.62 |
% |
|
|
2.97 |
% |
|
3.49 |
% |
Net interest margin (TEY) (Non-GAAP)(7) |
|
3.32 |
% |
|
3.31 |
% |
|
3.29 |
% |
|
3.52 |
% |
|
3.93 |
% |
|
|
3.35 |
% |
|
3.73 |
% |
Efficiency ratio (Non-GAAP) (8) |
|
58.90 |
% |
|
62.41 |
% |
|
58.01 |
% |
|
59.02 |
% |
|
57.50 |
% |
|
|
59.52 |
% |
|
60.93 |
% |
Gross loans and leases / total assets |
|
76.63 |
% |
|
77.36 |
% |
|
77.54 |
% |
|
77.02 |
% |
|
77.23 |
% |
|
|
76.63 |
% |
|
77.23 |
% |
Gross loans and leases / total deposits |
|
100.45 |
% |
|
101.72 |
% |
|
96.56 |
% |
|
95.21 |
% |
|
102.58 |
% |
|
|
100.45 |
% |
|
102.58 |
% |
Effective tax rate |
|
11.98 |
% |
|
6.82 |
% |
|
12.25 |
% |
|
9.29 |
% |
|
15.88 |
% |
|
|
10.32 |
% |
|
12.75 |
% |
Full-time equivalent employees (9) |
|
996 |
|
|
987 |
|
|
1009 |
|
|
969 |
|
|
973 |
|
|
|
996 |
|
|
973 |
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
Assets |
$ |
8,535,732 |
|
$ |
8,287,813 |
|
$ |
7,924,597 |
|
$ |
7,906,830 |
|
$ |
7,800,229 |
|
|
$ |
8,165,805 |
|
$ |
7,206,180 |
|
Loans/leases |
|
6,483,572 |
|
|
6,476,512 |
|
|
6,219,980 |
|
|
6,165,115 |
|
|
6,043,359 |
|
|
|
6,337,551 |
|
|
5,604,074 |
|
Deposits |
|
6,485,154 |
|
|
6,342,339 |
|
|
6,292,481 |
|
|
6,179,644 |
|
|
6,029,455 |
|
|
|
6,325,790 |
|
|
5,676,546 |
|
Total stockholders' equity |
|
852,163 |
|
|
837,734 |
|
|
816,882 |
|
|
794,685 |
|
|
757,419 |
|
|
|
825,557 |
|
|
748,032 |
|
|
|
|
|
|
|
|
|
|
(1) Includes accumulated other comprehensive income (loss). |
(2) Includes accumulated other comprehensive income (loss) and
excludes intangible assets. See GAAP to Non-GAAP
reconciliations. |
(3) LTM : Last twelve months. |
(4) TCE / TCA : tangible common equity / total tangible assets. See
GAAP to non-GAAP reconciliations. |
(5) Includes mostly common stock issued for options exercised and
the employee stock purchase plan, as well as stock-based
compensation. |
(6) Ratios for the current quarter are subject to change upon final
calculation for regulatory filings due after earnings release. |
(7) TEY : Tax equivalent yield. See GAAP to Non-GAAP
reconciliations. |
(8) See GAAP to Non-GAAP reconciliations. |
(9) The increase in full-time equivalent employees in the second
quarter of 2023 and the subsequent decline in the third quarter of
2023 includes 19 summer interns. |
QCR Holding, Inc. |
Consolidated Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
ANALYSIS OF NET INTEREST INCOME AND MARGIN |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
Average Balance |
Interest Earned or Paid |
Average Yield or Cost |
|
Average Balance |
Interest Earned or Paid |
Average Yield or Cost |
|
Average Balance |
Interest Earned or Paid |
Average Yield or Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
Fed funds sold |
$ |
18,644 |
$ |
257 |
5.47 |
% |
|
$ |
21,526 |
$ |
284 |
5.23 |
% |
|
$ |
30,754 |
$ |
296 |
3.82 |
% |
Interest-bearing deposits at financial institutions |
|
72,439 |
|
986 |
5.40 |
% |
|
|
86,807 |
|
1,205 |
5.51 |
% |
|
|
62,581 |
|
504 |
3.20 |
% |
Investment securities - taxable |
|
365,686 |
|
4,080 |
4.45 |
% |
|
|
344,657 |
|
3,788 |
4.38 |
% |
|
|
347,224 |
|
3,286 |
3.77 |
% |
Investment securities - nontaxable (1) |
|
650,069 |
|
8,380 |
5.15 |
% |
|
|
600,693 |
|
6,974 |
4.64 |
% |
|
|
624,706 |
|
6,788 |
4.35 |
% |
Restricted investment securities |
|
40,625 |
|
670 |
6.45 |
% |
|
|
43,590 |
|
659 |
5.91 |
% |
|
|
39,954 |
|
628 |
6.15 |
% |
Loans (1) |
|
6,483,572 |
|
105,830 |
6.48 |
% |
|
|
6,476,512 |
|
103,428 |
6.34 |
% |
|
|
6,043,359 |
|
88,088 |
5.78 |
% |
Total earning assets (1) |
$ |
7,631,035 |
$ |
120,203 |
6.26 |
% |
|
$ |
7,573,785 |
$ |
116,338 |
6.10 |
% |
|
$ |
7,148,578 |
$ |
99,590 |
5.53 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
4,465,279 |
$ |
37,082 |
3.29 |
% |
|
$ |
4,264,208 |
$ |
33,563 |
3.12 |
% |
|
$ |
3,968,081 |
$ |
17,655 |
1.77 |
% |
Time deposits |
|
982,356 |
|
10,559 |
4.26 |
% |
|
|
999,488 |
|
10,003 |
3.97 |
% |
|
|
746,819 |
|
3,476 |
1.85 |
% |
Short-term borrowings |
|
1,101 |
|
15 |
5.18 |
% |
|
|
1,514 |
|
20 |
5.28 |
% |
|
|
19,591 |
|
211 |
4.28 |
% |
Federal Home Loan Bank advances |
|
360,000 |
|
4,841 |
5.26 |
% |
|
|
425,870 |
|
5,724 |
5.26 |
% |
|
|
351,033 |
|
3,507 |
3.91 |
% |
Subordinated debentures |
|
232,994 |
|
3,308 |
5.68 |
% |
|
|
232,890 |
|
3,307 |
5.68 |
% |
|
|
232,689 |
|
3,312 |
5.69 |
% |
Junior subordinated debentures |
|
48,710 |
|
708 |
5.68 |
% |
|
|
48,678 |
|
695 |
5.59 |
% |
|
|
48,583 |
|
657 |
5.29 |
% |
Total interest-bearing liabilities |
$ |
6,090,440 |
$ |
56,513 |
3.68 |
% |
|
$ |
5,972,648 |
$ |
53,312 |
3.54 |
% |
|
$ |
5,366,796 |
$ |
28,818 |
2.13 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (1) |
|
$ |
63,690 |
|
|
|
$ |
63,026 |
|
|
|
$ |
70,772 |
|
Net interest margin (2) |
|
|
2.90 |
% |
|
|
|
2.89 |
% |
|
|
|
3.62 |
% |
Net interest margin (TEY) (Non-GAAP) (1) (2) (3) |
|
|
3.32 |
% |
|
|
|
3.31 |
% |
|
|
|
3.93 |
% |
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) |
|
|
3.29 |
% |
|
|
|
3.28 |
% |
|
|
|
3.61 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended |
|
|
|
|
|
December 31, 2023 |
|
December 31, 2022 |
|
|
|
Average Balance |
Interest Earned or Paid |
Average Yield or Cost |
|
Average Balance |
Interest Earned or Paid |
Average Yield or Cost |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fed funds sold |
$ |
19,110 |
$ |
998 |
5.22 |
% |
|
$ |
14,436 |
$ |
410 |
2.84 |
% |
|
|
|
|
Interest-bearing deposits at financial institutions |
|
80,924 |
|
4,137 |
5.11 |
% |
|
|
63,448 |
|
1,089 |
1.72 |
% |
|
|
|
|
Investment securities - taxable |
|
346,579 |
|
14,927 |
4.30 |
% |
|
|
335,255 |
|
12,078 |
3.59 |
% |
|
|
|
|
Investment securities - nontaxable (1) |
|
611,924 |
|
28,272 |
4.62 |
% |
|
|
575,457 |
|
24,281 |
4.22 |
% |
|
|
|
|
Restricted investment securities |
|
39,273 |
|
2,346 |
5.89 |
% |
|
|
35,554 |
|
2,068 |
5.73 |
% |
|
|
|
|
Loans (1) |
|
6,337,551 |
|
390,967 |
6.17 |
% |
|
|
5,604,074 |
|
268,985 |
4.80 |
% |
|
|
|
|
Total earning assets (1) |
$ |
7,435,361 |
$ |
441,647 |
5.94 |
% |
|
$ |
6,628,224 |
$ |
308,911 |
4.66 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing deposits |
$ |
4,191,913 |
$ |
121,662 |
2.90 |
% |
|
$ |
3,715,017 |
$ |
35,359 |
0.95 |
% |
|
|
|
|
Time deposits |
|
1,010,827 |
|
37,784 |
3.74 |
% |
|
|
568,245 |
|
7,003 |
1.23 |
% |
|
|
|
|
Short-term borrowings |
|
2,781 |
|
152 |
6.44 |
% |
|
|
8,637 |
|
299 |
3.46 |
% |
|
|
|
|
Federal Home Loan Bank advances |
|
323,904 |
|
16,740 |
5.10 |
% |
|
|
286,474 |
|
6,954 |
2.39 |
% |
|
|
|
|
Other borrowings |
|
- |
|
- |
0.00 |
% |
|
|
1,068 |
|
53 |
4.96 |
% |
|
|
|
|
Subordinated debentures |
|
232,837 |
|
13,230 |
5.68 |
% |
|
|
165,685 |
|
9,200 |
5.55 |
% |
|
|
|
|
Junior subordinated debentures |
|
48,662 |
|
2,836 |
5.75 |
% |
|
|
45,497 |
|
2,583 |
5.60 |
% |
|
|
|
|
Total interest-bearing liabilities |
$ |
5,810,924 |
$ |
192,404 |
3.31 |
% |
|
$ |
4,790,623 |
$ |
61,451 |
1.28 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (1) |
|
$ |
249,243 |
|
|
|
$ |
247,460 |
|
|
|
|
|
Net interest margin (2) |
|
|
2.97 |
% |
|
|
|
3.49 |
% |
|
|
|
|
Net interest margin (TEY) (Non-GAAP) (1) (2) (3) |
|
|
3.35 |
% |
|
|
|
3.73 |
% |
|
|
|
|
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) |
|
|
3.32 |
% |
|
|
|
3.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes nontaxable securities and loans. Interest earned and
yields on nontaxable securities and loans are determined on a tax
equivalent basis using a 21% tax rate. |
|
|
(2) See "Select Financial Data - Subsidiaries" for a breakdown of
amortization/accretion included in net interest margin for each
period presented. |
|
|
|
|
(3) TEY : Tax equivalent yield. See GAAP to Non-GAAP
reconciliations. |
|
|
|
|
|
|
|
|
|
|
QCR Holding,
Inc. |
Consolidated
Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
As of |
|
|
|
December 31, |
|
|
|
September 30, |
|
|
|
June 30, |
|
|
|
March 31, |
|
|
|
December 31, |
|
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
|
|
|
|
(dollars in
thousands, except per share data) |
|
|
|
|
|
|
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON
LOANS/LEASES |
|
|
|
|
|
Beginning
balance |
|
$ |
87,669 |
|
|
$ |
85,797 |
|
|
$ |
86,573 |
|
|
$ |
87,706 |
|
|
$ |
90,489 |
|
Change in
ACL for writedown of LHFS to fair value (1) |
|
|
266 |
|
|
|
175 |
|
|
|
(2,277 |
) |
|
|
(1,709 |
) |
|
|
- |
|
Credit loss
expense |
|
|
2,519 |
|
|
|
3,260 |
|
|
|
3,313 |
|
|
|
2,458 |
|
|
|
1,013 |
|
Loans/leases
charged off |
|
|
(3,354 |
) |
|
|
(1,816 |
) |
|
|
(1,947 |
) |
|
|
(2,275 |
) |
|
|
(3,960 |
) |
Recoveries
on loans/leases previously charged off |
|
|
100 |
|
|
|
253 |
|
|
|
135 |
|
|
|
393 |
|
|
|
164 |
|
Ending balance |
|
$ |
87,200 |
|
|
$ |
87,669 |
|
|
$ |
85,797 |
|
|
$ |
86,573 |
|
|
$ |
87,706 |
|
|
|
|
|
|
|
NONPERFORMING ASSETS |
|
|
|
|
|
Nonaccrual
loans/leases |
|
$ |
32,753 |
|
|
$ |
34,568 |
|
|
$ |
26,062 |
|
|
$ |
22,947 |
|
|
$ |
8,765 |
|
Accruing
loans/leases past due 90 days or more |
|
|
86 |
|
|
|
- |
|
|
|
83 |
|
|
|
15 |
|
|
|
5 |
|
Total nonperforming loans/leases |
|
|
32,839 |
|
|
|
34,568 |
|
|
|
26,145 |
|
|
|
22,962 |
|
|
|
8,770 |
|
Other real
estate owned |
|
|
1,347 |
|
|
|
120 |
|
|
|
- |
|
|
|
61 |
|
|
|
133 |
|
Other
repossessed assets |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Total nonperforming assets |
|
$ |
34,186 |
|
|
$ |
34,688 |
|
|
$ |
26,145 |
|
|
$ |
23,023 |
|
|
$ |
8,903 |
|
|
|
|
|
|
|
ASSET QUALITY RATIOS |
|
|
|
|
|
Nonperforming assets / total assets |
|
|
0.40 |
% |
|
|
0.41 |
% |
|
|
0.32 |
% |
|
|
0.29 |
% |
|
|
0.11 |
% |
ACL for
loans and leases / total loans/leases held for investment |
|
|
1.33 |
% |
|
|
1.39 |
% |
|
|
1.41 |
% |
|
|
1.43 |
% |
|
|
1.43 |
% |
ACL for
loans and leases / nonperforming loans/leases |
|
|
265.54 |
% |
|
|
253.61 |
% |
|
|
328.16 |
% |
|
|
377.03 |
% |
|
|
1000.07 |
% |
Net
charge-offs as a % of average loans/leases |
|
|
0.05 |
% |
|
|
0.02 |
% |
|
|
0.03 |
% |
|
|
0.03 |
% |
|
|
0.06 |
% |
|
|
|
|
|
|
INTERNALLY ASSIGNED RISK RATING (2) |
|
|
|
|
|
Special
mention (rating 6) |
|
$ |
124,460 |
|
|
$ |
127,202 |
|
|
$ |
116,910 |
|
|
$ |
125,048 |
|
|
$ |
98,333 |
|
Substandard
(rating 7)/Classifed loans (3) |
|
|
67,313 |
|
|
|
69,369 |
|
|
|
63,956 |
|
|
|
70,866 |
|
|
|
66,021 |
|
Doubtful
(rating 8)/Classifed loans (3) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Criticized
loans (4) |
|
$ |
191,773 |
|
|
$ |
196,571 |
|
|
$ |
180,866 |
|
|
$ |
195,914 |
|
|
$ |
164,354 |
|
|
|
|
|
|
|
Classified
loans as a % of total loans/leases |
|
|
1.03 |
% |
|
|
1.05 |
% |
|
|
1.00 |
% |
|
|
1.14 |
% |
|
|
1.08 |
% |
Criticized
loans as a % of total loans/leases |
|
|
2.93 |
% |
|
|
2.98 |
% |
|
|
2.84 |
% |
|
|
3.16 |
% |
|
|
2.68 |
% |
|
|
|
|
|
|
(1) Certain loans were
identified for securitization and transferred from loans to LHFS.
The fair values of the loans were less than their carrying values
at the date of transfer, resulting in a change to the loan
ACL. |
(2) Amounts exclude
the government guaranteed portion, if any. The Company assigns
internal risk ratings of Pass (Rating 2) for the government
guaranteed portion. |
(3) Classified loans
are defined as C&I and CRE loans with internally assigned risk
ratings of 7 or 8, regardless of performance. |
(4) Criticized loans
are defined as C&I and CRE loans with internally assigned risk
ratings of 6, 7, or 8, regardless of performance. |
QCR Holding, Inc. |
Consolidated Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Quarter Ended |
For the Year Ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
SELECT FINANCIAL DATA - SUBSIDIARIES |
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
|
(dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
$ |
2,448,957 |
|
|
$ |
2,433,084 |
|
|
$ |
2,312,013 |
|
|
|
|
|
|
m2 Equipment Finance, LLC |
|
|
345,682 |
|
|
|
336,180 |
|
|
|
306,396 |
|
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
|
2,419,146 |
|
|
|
2,442,263 |
|
|
|
2,185,500 |
|
|
|
|
|
|
Community State Bank |
|
|
1,426,202 |
|
|
|
1,417,250 |
|
|
|
1,297,812 |
|
|
|
|
|
|
Guaranty Bank |
|
|
2,281,296 |
|
|
|
2,242,638 |
|
|
|
2,146,474 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL DEPOSITS |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
$ |
1,878,375 |
|
|
$ |
1,973,989 |
|
|
$ |
1,730,187 |
|
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
|
1,748,516 |
|
|
|
1,722,905 |
|
|
|
1,686,959 |
|
|
|
|
|
|
Community State Bank |
|
|
1,169,921 |
|
|
|
1,132,724 |
|
|
|
1,071,146 |
|
|
|
|
|
|
Guaranty Bank |
|
|
1,771,371 |
|
|
|
1,722,861 |
|
|
|
1,587,477 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LOANS & LEASES |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
$ |
1,983,679 |
|
|
$ |
2,005,770 |
|
|
$ |
1,828,267 |
|
|
|
|
|
|
m2 Equipment Finance, LLC |
|
|
350,641 |
|
|
|
341,041 |
|
|
|
309,930 |
|
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
|
1,698,447 |
|
|
|
1,750,986 |
|
|
|
1,644,989 |
|
|
|
|
|
|
Community State Bank |
|
|
1,099,262 |
|
|
|
1,098,479 |
|
|
|
988,370 |
|
|
|
|
|
|
Guaranty Bank |
|
|
1,762,027 |
|
|
|
1,751,072 |
|
|
|
1,677,245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LOANS & LEASES / TOTAL DEPOSITS |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
|
106 |
% |
|
|
102 |
% |
|
|
106 |
% |
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
|
97 |
% |
|
|
102 |
% |
|
|
98 |
% |
|
|
|
|
|
Community State Bank |
|
|
94 |
% |
|
|
97 |
% |
|
|
92 |
% |
|
|
|
|
|
Guaranty Bank |
|
|
99 |
% |
|
|
102 |
% |
|
|
106 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LOANS & LEASES / TOTAL ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
|
81 |
% |
|
|
82 |
% |
|
|
79 |
% |
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
|
70 |
% |
|
|
72 |
% |
|
|
75 |
% |
|
|
|
|
|
Community State Bank |
|
|
77 |
% |
|
|
78 |
% |
|
|
76 |
% |
|
|
|
|
|
Guaranty Bank |
|
|
77 |
% |
|
|
78 |
% |
|
|
78 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ACL ON LOANS/LEASES AS A PERCENTAGE OF
LOANS/LEASES |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
|
1.48 |
% |
|
|
1.43 |
% |
|
|
1.46 |
% |
|
|
|
|
|
m2 Equipment Finance, LLC |
|
|
3.80 |
% |
|
|
3.52 |
% |
|
|
3.11 |
% |
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
|
1.39 |
% |
|
|
1.40 |
% |
|
|
1.49 |
% |
|
|
|
|
|
Community State Bank |
|
|
1.23 |
% |
|
|
1.22 |
% |
|
|
1.38 |
% |
|
|
|
|
|
Guaranty Bank |
|
|
1.18 |
% |
|
|
1.20 |
% |
|
|
1.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RETURN ON AVERAGE ASSETS |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
|
0.67 |
% |
|
|
0.97 |
% |
|
|
1.36 |
% |
|
|
0.92 |
% |
|
|
1.55 |
% |
|
Cedar Rapids Bank and Trust |
|
|
3.78 |
% |
|
|
2.28 |
% |
|
|
2.73 |
% |
|
|
3.17 |
% |
|
|
2.63 |
% |
|
Community State Bank |
|
|
1.11 |
% |
|
|
1.38 |
% |
|
|
1.75 |
% |
|
|
1.34 |
% |
|
|
1.40 |
% |
|
Guaranty Bank (5) |
|
|
1.41 |
% |
|
|
1.23 |
% |
|
|
2.06 |
% |
|
|
1.16 |
% |
|
|
1.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN PERCENTAGE (2) |
|
|
|
|
|
|
|
|
|
|
|
Quad City Bank and Trust (1) |
|
|
3.41 |
% |
|
|
3.37 |
% |
|
|
3.56 |
% |
|
|
3.37 |
% |
|
|
3.61 |
% |
|
Cedar Rapids Bank and Trust |
|
|
3.84 |
% |
|
|
3.78 |
% |
|
|
4.37 |
% |
|
|
3.83 |
% |
|
|
3.93 |
% |
|
Community State Bank (3) |
|
|
3.74 |
% |
|
|
3.88 |
% |
|
|
4.06 |
% |
|
|
3.87 |
% |
|
|
3.77 |
% |
|
Guaranty Bank (4) |
|
|
3.07 |
% |
|
|
3.06 |
% |
|
|
4.58 |
% |
|
|
3.18 |
% |
|
|
4.18 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN
NET |
|
|
|
|
|
|
|
|
|
INTEREST MARGIN, NET |
|
|
|
|
|
|
|
|
|
|
|
Cedar Rapids Bank and Trust |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
98 |
|
|
$ |
(8 |
) |
|
$ |
158 |
|
|
Community State Bank |
|
|
(1 |
) |
|
|
(1 |
) |
|
|
505 |
|
|
$ |
67 |
|
|
|
628 |
|
|
Guaranty Bank |
|
|
706 |
|
|
|
572 |
|
|
|
5,118 |
|
|
$ |
2,243 |
|
|
|
7,932 |
|
|
QCR Holdings, Inc. (6) |
|
|
(32 |
) |
|
|
(32 |
) |
|
|
(33 |
) |
|
$ |
(129 |
) |
|
|
(137 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Quad City Bank and Trust amounts include m2 Equipment Finance, LLC,
as this entity is wholly-owned and consolidated with the Bank. m2
Equipment Finance, LLC is also presented separately for
certain (applicable) measurements. |
(2) |
Includes nontaxable securities and loans. Interest earned and
yields on nontaxable securities and loans are determined on a tax
equivalent basis using a 21% federal tax rate. |
(3) |
Community State Bank's net interest margin percentage includes
various purchase accounting adjustments. Excluding those
adjustments, net interest margin (Non-GAAP) would have been
3.74% for the quarter ended December 31, 2023, 3.88% for the
quarter ended September 30, 2023 and 3.73% for the quarter ended
December 31, 2022. |
(4) |
Guaranty Bank's net interest margin percentage includes various
purchase accounting adjustments. Excluding those adjustments, net
interest margin (Non-GAAP) would have been 2.95% for the
quarter ended December 31, 2023, 2.97% for the quarter ended
September 30, 2023 and 3.58% for the quarter ended December 31,
2022. |
(5) |
Adjusted ROAA excluding non-core adjustments for the Guaranty Bank
acquisition (non-GAAP) would have been 1.91% for the year ended
December 31, 2022. |
(6) |
Relates to the trust preferred securities acquired as part of the
Guaranty Bank acquisition in 2017 and the Community National Bank
acquisition in 2013. |
QCR Holding, Inc. |
Consolidated Financial Highlights |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
|
December 31, |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
GAAP TO NON-GAAP RECONCILIATIONS |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(dollars in thousands, except per share data) |
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity (GAAP) |
|
$ |
886,596 |
|
|
$ |
828,383 |
|
|
$ |
822,689 |
|
|
$ |
801,494 |
|
|
$ |
772,724 |
|
Less: Intangible assets |
|
|
152,848 |
|
|
|
153,564 |
|
|
|
154,255 |
|
|
|
154,467 |
|
|
|
154,366 |
|
Tangible common equity (non-GAAP) |
|
$ |
733,748 |
|
|
$ |
674,819 |
|
|
$ |
668,434 |
|
|
$ |
647,027 |
|
|
$ |
618,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets (GAAP) |
|
$ |
8,538,894 |
|
|
$ |
8,540,057 |
|
|
$ |
8,226,673 |
|
|
$ |
8,036,904 |
|
|
$ |
7,948,837 |
|
Less: Intangible assets |
|
|
152,848 |
|
|
|
153,564 |
|
|
|
154,255 |
|
|
|
154,467 |
|
|
|
154,366 |
|
Tangible assets (non-GAAP) |
|
$ |
8,386,046 |
|
|
$ |
8,386,493 |
|
|
$ |
8,072,418 |
|
|
$ |
7,882,437 |
|
|
$ |
7,794,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible common equity to tangible assets ratio
(non-GAAP) |
|
8.75 |
% |
|
|
8.05 |
% |
|
|
8.28 |
% |
|
|
8.21 |
% |
|
|
7.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 Year Ended |
|
|
December 31, |
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
December 31, |
|
December 31, |
ADJUSTED NET INCOME (1) |
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
(dollars in thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
32,855 |
|
|
$ |
25,121 |
|
|
$ |
28,425 |
|
|
$ |
27,157 |
|
|
$ |
30,906 |
|
|
$ |
113,558 |
|
|
$ |
99,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less non-core items (post-tax) (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities gains (losses), net |
|
|
- |
|
|
|
- |
|
|
|
9 |
|
|
|
(366 |
) |
|
|
- |
|
|
|
(356 |
) |
|
|
- |
|
Fair value gain (loss) on derivatives, net |
|
|
(460 |
) |
|
|
(265 |
) |
|
|
66 |
|
|
|
(337 |
) |
|
|
(211 |
) |
|
|
(997 |
) |
|
|
1,560 |
|
Total non-core income (non-GAAP) |
|
$ |
(460 |
) |
|
$ |
(265 |
) |
|
$ |
75 |
|
|
$ |
(703 |
) |
|
$ |
(211 |
) |
|
$ |
(1,353 |
) |
|
$ |
1,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition costs (2) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(517 |
) |
|
|
- |
|
|
|
3,198 |
|
Post-acquisition compensation, transition and integration
costs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
164 |
|
|
|
529 |
|
|
|
164 |
|
|
|
4,366 |
|
Separation agreement |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
CECL Day 2 provision for credit losses on acquired non-PCD loans
(3) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,651 |
|
CECL Day 2 provision for credit losses provision on acquired OBS
exposure (3) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,140 |
|
Total non-core expense (non-GAAP) |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
164 |
|
|
$ |
12 |
|
|
$ |
164 |
|
|
$ |
17,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (non-GAAP) (1) |
|
$ |
33,315 |
|
|
$ |
25,386 |
|
|
$ |
28,350 |
|
|
$ |
28,024 |
|
|
$ |
31,129 |
|
|
$ |
115,075 |
|
|
$ |
114,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EARNINGS PER COMMON SHARE (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (non-GAAP) (from above) |
|
$ |
33,315 |
|
|
$ |
25,386 |
|
|
$ |
28,350 |
|
|
$ |
28,024 |
|
|
$ |
31,129 |
|
|
$ |
115,075 |
|
|
$ |
114,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
|
16,734,080 |
|
|
|
16,717,303 |
|
|
|
16,701,950 |
|
|
|
16,776,289 |
|
|
|
16,855,973 |
|
|
|
16,732,406 |
|
|
|
16,681,844 |
|
Weighted average common and common equivalent shares
outstanding |
|
|
16,875,952 |
|
|
|
16,847,951 |
|
|
|
16,799,527 |
|
|
|
16,942,132 |
|
|
|
17,047,976 |
|
|
|
16,866,391 |
|
|
|
16,890,007 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per common share
(non-GAAP): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
1.99 |
|
|
$ |
1.52 |
|
|
$ |
1.70 |
|
|
$ |
1.67 |
|
|
$ |
1.85 |
|
|
$ |
6.88 |
|
|
$ |
6.89 |
|
Diluted |
|
$ |
1.97 |
|
|
$ |
1.51 |
|
|
$ |
1.69 |
|
|
$ |
1.65 |
|
|
$ |
1.83 |
|
|
$ |
6.82 |
|
|
$ |
6.80 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income (non-GAAP) (from above) |
|
$ |
33,315 |
|
|
$ |
25,386 |
|
|
$ |
28,350 |
|
|
$ |
28,024 |
|
|
$ |
31,129 |
|
|
$ |
115,075 |
|
|
$ |
114,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Assets |
|
$ |
8,535,732 |
|
|
$ |
8,287,813 |
|
|
$ |
7,924,597 |
|
|
$ |
7,906,830 |
|
|
$ |
7,800,229 |
|
|
$ |
8,165,805 |
|
|
$ |
7,206,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted return on average assets (annualized)
(non-GAAP) |
|
|
1.56 |
% |
|
|
1.23 |
% |
|
|
1.43 |
% |
|
|
1.42 |
% |
|
|
1.60 |
% |
|
|
1.41 |
% |
|
|
1.59 |
% |
Adjusted return on average equity (annualized)
(non-GAAP) |
|
|
15.64 |
% |
|
|
12.12 |
% |
|
|
13.88 |
% |
|
|
14.11 |
% |
|
|
16.44 |
% |
|
|
13.94 |
% |
|
|
15.36 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST MARGIN (TEY) (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
|
$ |
55,736 |
|
|
$ |
55,255 |
|
|
$ |
53,205 |
|
|
$ |
56,810 |
|
|
$ |
65,218 |
|
|
$ |
221,006 |
|
|
$ |
231,120 |
|
Plus: Tax equivalent adjustment (5) |
|
|
7,954 |
|
|
|
7,771 |
|
|
|
6,542 |
|
|
|
6,057 |
|
|
|
5,554 |
|
|
|
28,237 |
|
|
|
16,340 |
|
Net interest income - tax equivalent (Non-GAAP) |
|
$ |
63,690 |
|
|
$ |
63,026 |
|
|
$ |
59,747 |
|
|
$ |
62,867 |
|
|
$ |
70,772 |
|
|
$ |
249,243 |
|
|
$ |
247,460 |
|
Less: Acquisition accounting net accretion |
|
|
673 |
|
|
|
539 |
|
|
|
134 |
|
|
|
828 |
|
|
|
5,688 |
|
|
|
2,173 |
|
|
|
8,581 |
|
Adjusted net interest income |
|
$ |
63,017 |
|
|
$ |
62,487 |
|
|
$ |
59,613 |
|
|
$ |
62,039 |
|
|
$ |
65,084 |
|
|
$ |
247,070 |
|
|
$ |
238,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average earning assets |
|
$ |
7,631,035 |
|
|
$ |
7,573,785 |
|
|
$ |
7,283,286 |
|
|
$ |
7,247,605 |
|
|
$ |
7,148,578 |
|
|
$ |
7,435,361 |
|
|
$ |
6,628,224 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest margin (GAAP) |
|
|
2.90 |
% |
|
|
2.89 |
% |
|
|
2.93 |
% |
|
|
3.18 |
% |
|
|
3.62 |
% |
|
|
2.97 |
% |
|
|
3.49 |
% |
Net interest margin (TEY) (Non-GAAP) |
|
|
3.32 |
% |
|
|
3.31 |
% |
|
|
3.29 |
% |
|
|
3.52 |
% |
|
|
3.93 |
% |
|
|
3.35 |
% |
|
|
3.73 |
% |
Adjusted net interest margin (TEY) (Non-GAAP) |
|
|
3.29 |
% |
|
|
3.28 |
% |
|
|
3.28 |
% |
|
|
3.47 |
% |
|
|
3.61 |
% |
|
|
3.32 |
% |
|
|
3.60 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EFFICIENCY RATIO (6) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
|
$ |
60,938 |
|
|
$ |
51,081 |
|
|
$ |
49,727 |
|
|
$ |
48,785 |
|
|
$ |
49,697 |
|
|
$ |
210,531 |
|
|
$ |
190,016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
|
$ |
55,736 |
|
|
$ |
55,255 |
|
|
$ |
53,205 |
|
|
$ |
56,810 |
|
|
$ |
65,218 |
|
|
$ |
221,006 |
|
$ |
$ |
231,120 |
|
Noninterest income (GAAP) |
|
|
47,729 |
|
|
|
26,593 |
|
|
|
32,520 |
|
|
|
25,842 |
|
|
|
21,219 |
|
|
|
132,684 |
|
|
|
80,729 |
|
Total income |
|
$ |
103,465 |
|
|
$ |
81,848 |
|
|
$ |
85,725 |
|
|
$ |
82,652 |
|
|
$ |
86,437 |
|
|
$ |
353,690 |
|
|
$ |
311,849 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (noninterest expense/total income)
(Non-GAAP) |
|
|
58.90 |
% |
|
|
62.41 |
% |
|
|
58.01 |
% |
|
|
59.02 |
% |
|
|
57.50 |
% |
|
|
59.52 |
% |
|
|
60.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted net income, adjusted earnings per common share,
adjusted return on average assets and average equity are non-GAAP
financial measures. The Company's management believes that these
measurements are important to investors as they exclude non-core or
non-recurring income and expense items, therefore, they provide a
more realistic run-rate for future periods. In compliance with
applicable rules of the SEC, these non-GAAP measures are reconciled
to net income, which is the most directly comparable GAAP financial
measure. |
(2) Non-core or nonrecurring items (post-tax) are calculated using
an estimated effective federal tax rate of 21% with the exception
of acquisition costs which have an estimated effective federal tax
rate of 13.62%. |
(3) The CECL Day 2 provision for credit losses on acquired non-PCD
loans and OBS exposures resulted from the Guaranty Bank acquisition
on April 1, 2022. |
(4) Interest earned and yields on nontaxable securities and loans
are determined on a tax equivalent basis using a 21% effective
federal tax rate. |
(5) Net interest margin (TEY) is a non-GAAP financial measure. The
Company's management utilizes this measurement to take into account
the tax benefit associated with certain loans and securities.
It is also standard industry practice to measure net interest
margin using tax-equivalent measures. In compliance with applicable
rules of the SEC, this non-GAAP measure is reconciled to net
interest income, which is the most directly comparable GAAP
financial measure. In addition, the Company calculates net interest
margin without the impact of acquisition accounting net
accretion as this can fluctuate and it's difficult to provide a
more realistic run-rate for future periods. |
(6) Efficiency ratio is a non-GAAP measure. The Company's
management utilizes this ratio to compare to industry peers. The
ratio is used to calculate overhead as a percentage of
revenue. In compliance with the applicable rules of the SEC,
this non-GAAP measure is reconciled to noninterest expense, net
interest income and noninterest income, which are the
most directly comparable GAAP financial measures. |
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