QCRH QCR Holdings Inc

QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $30.2 million and diluted earnings per share (“EPS”) of $1.77 for the fourth quarter of 2024, compared to net income of $27.8 million and diluted EPS of $1.64 for the third quarter of 2024. For the full year, the Company reported record net income of $113.9 million, or $6.71 per diluted share.

Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the fourth quarter of 2024 were $32.8 million and $1.93, respectively. For the third quarter of 2024, adjusted net income (non-GAAP) was $30.3 million and adjusted diluted EPS (non-GAAP) was $1.78. For the fourth quarter of 2023, net income and diluted EPS were $32.9 million and $1.95, respectively, and adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $33.3 million and $1.97, respectively. Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the full year of 2024 were $119.3 million and $7.03, respectively.

	For the Quarter Ended
	December 31,			September 30,			December 31,
$ in millions (except per share data)	2024			2024			2023
Net Income	$	30.2		$	27.8		$	32.9
Diluted EPS	$	1.77		$	1.64		$	1.95
Adjusted Net Income (non-GAAP)*	$	32.8		$	30.3		$	33.3
Adjusted Diluted EPS (non-GAAP)*	$	1.93		$	1.78		$	1.97

*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 delivered our strongest results of the year in the fourth quarter, generating record full year results. Our exceptional performance was highlighted by significant growth in net interest income, driven by margin expansion, and robust loan growth,” said Larry J. Helling, Chief Executive Officer. “Additionally, we produced another strong year of capital markets and wealth management revenue while controlling our core operating expenses and maintaining excellent asset quality. We also successfully executed on our fourth low-income housing tax credit securitization during the fourth quarter.”

“We begin 2025 with a solid pipeline of loans and deposits, strong credit quality, and well-managed expenses. Our focus remains on growing our franchise through relationship-driven banking and executing on our unique business model which delivers exceptional operational performance for our shareholders,” said Mr. Helling.

Record Net Interest Income and Continued NIM Expansion

Net interest income for the fourth quarter of 2024 totaled $61.2 million, an increase of $1.5 million from the third quarter of 2024. Acquisition-related net accretion totaled $471 thousand for the fourth quarter of 2024, compared to $463 thousand in the third quarter of 2024. Net interest income was $55.7 million for the fourth quarter of 2023.

In the fourth quarter of 2024, net interest margin (“NIM”) was 2.95% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP) was 3.43%, up from 2.90% and 3.37% in the prior quarter, respectively. Adjusted NIM TEY (non-GAAP) of 3.40% was also up from 3.34% in the third quarter of 2024.

“Our adjusted NIM on a tax equivalent yield basis improved by 6 basis points to 3.40% in the fourth quarter near the top end of our guidance range,” said Todd A. Gipple, President and Chief Financial Officer. “We were successful in significantly reducing our cost of interest-bearing deposits in the fourth quarter by 33 basis points, contributing to a significant decrease in our funding costs. Our ability to aggressively react to the recent Fed interest rate cuts has contributed meaningfully to our NIM expansion.” Looking forward, the Company expects to continue growing its NIM in the first quarter of 2025. “We project our adjusted NIM on a tax equivalent yield basis for the first quarter of 2025 to be in the range from static to an increase of 5 basis points,” said Mr. Gipple.

Significant Capital Markets and Wealth Management Revenue

Noninterest income for the fourth quarter of 2024 totaled $30.6 million, up from $27.2 million for the third quarter of 2024. The Company generated strong capital markets revenue of $20.6 million up from $16.3 million in the prior quarter. Capital markets revenue in the fourth quarter included a $1.4 million gain from the Company’s fourth low-income housing tax credit (“LIHTC”) securitization, compared to a $473 thousand loss in the third quarter of 2024. Wealth management revenues also increased during the fourth quarter with $4.8 million in revenue, up from $4.5 million in the prior quarter, or 25% annualized.

“Our capital markets business delivered strong results, fueled by swap fees generated through our LIHTC lending program. The strong demand for affordable housing continues to support the sustainability of our LIHTC lending initiatives," said Mr. Gipple. "Our LIHTC lending pipeline and related capital markets revenue remains solid. As a result, we expect our capital markets revenue from swap fees for the next twelve months to be in a range of $50 to $60 million. Furthermore, our wealth management business continues to expand, driven by new client acquisitions and growth in assets under management.”

Noninterest Expenses Impacted by Higher Incentive Compensation but Efficiency Ratio Improves

Noninterest expense for the fourth quarter of 2024 totaled $53.5 million which was consistent with the prior quarter, and lower than $60.9 million in the fourth quarter of 2023. The fourth quarter included higher incentive-based compensation related to strong fourth quarter and record full year performance as well as investments in the digital transformation of the Company’s core systems.

“Our core expenses, while impacted by higher incentive compensation and system conversion expenses during the fourth quarter, remained well-controlled for the full year, decreasing $5.1 million, or 2% from the prior year,” said Mr. Gipple. The Company’s efficiency ratio (non-GAAP) improved to 58.26% and the adjusted efficiency ratio (non-GAAP) improved to 56.25% in the fourth quarter of 2024. For the first quarter of 2025 we expect noninterest expense to be in the range of $52 to $55 million, an increase of 4% which aligns with the Company’s 9/6/5 strategic model.

Continued Strong Loan Growth

During the fourth quarter of 2024, loans and leases held for investment grew $120.5 million, or 7% annualized from the prior quarter to a total of $6.8 billion. For the full year, prior to loan securitizations of $387 million, the Company’s total loans and leases grew $628 million, or 10% from the prior year.

“Our solid performance reflects the strength of our unique, relationship-driven community banking model and the economic resilience within our markets”, added Mr. Helling. “With our current pipeline and the continued strength of our markets, we anticipate gross loan growth between 8% and 10% for the full year 2025. When factoring in the loan securitization that we have planned for 2025 and the continuing runoff of m2 Equipment Finance loans, we are targeting net loan growth between 1% and 3% for the year.”

Asset Quality Remains Excellent

Nonperforming assets (“NPAs”) totaled $45.6 million at the end of the fourth quarter of 2024, an increase of $9.9 million from $35.7 million at the end of the third quarter of 2024. The increase in NPAs was primarily due to three loans in discrete industries. These changes are reflective of the credit environment normalizing from historically low levels.

The ratio of NPAs to total assets was 0.50% on December 31, 2024, compared to 0.39% on September 30, 2024. In addition, the Company’s criticized loans and classified loans to total loans and leases on December 31, 2024, were 2.34% and 1.25% compared to 2.20% and 1.03%, respectively, as of September 30, 2024. At December 31, 2024, approximately 43% of the Company’s total NPAs are comprised of just four relationships. The Company’s largest NPA of $9.7 million was fully paid off in mid-January of 2025. This successful outcome reduced total NPAs down to $35.9 million, or 0.40% of total assets on a proforma basis, consistent with December 31, 2023.

The Company recorded a total provision for credit losses of $5.2 million during the fourth quarter of 2024, representing a $1.7 million increase from the prior quarter driven by strong loan growth and an increase in criticized loan balances. As of December 31, 2024, the allowance for credit losses to total loans/leases held for investment was 1.32%, an increase of 2 basis points from the prior quarter.

Strong Core Deposit Growth and Increased Liquidity

During the fourth quarter of 2024, core deposits, which exclude brokered deposits, increased $75.6 million or 5% annualized. For the full year total core deposits grew $474 million or 8% from the prior year, outpacing net loan growth and increasing immediate liquidity.

Total uninsured and uncollateralized deposits remain quite low at $1.3 billion, or 19% of total deposits as of the end of the fourth quarter of 2024, compared to 21% as of the end of the third quarter of 2024. Total available liquidity as of quarter end was approximately $4 billion, which included $1.7 billion in instantly accessible liquidity.

Capital Levels Increased

As of December 31, 2024, the Company’s total risk-based capital ratio was 14.10%, its common equity tier 1 ratio was 10.03% and its tangible common equity to tangible assets ratio (“TCE”) (non-GAAP) was 9.55%. By comparison, these ratios were 13.87%, 9.79% and 9.24%, respectively, as of September 30, 2024. We remain focused on growing capital and targeting TCE in the top quartile of the Company’s peer group.

The Company’s tangible book value per share (non-GAAP) increased by $1.21, or 10% annualized during the fourth quarter, of 2024. For the full year the tangible book value per share (non-GAAP) increased by $6.40, or 15% from the prior year. The combination of strong earnings and a modest dividend contributed to the improvement in tangible book value per share (non-GAAP). Accumulated other comprehensive income (“AOCI”) decreased $9.6 million during the fourth quarter of 2024 due to a decrease 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.

Conference Call Details The Company will host an earnings call/webcast tomorrow, January 23, 2025, 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 30, 2025. The replay access information is 877-344-7529 (international 412-317-0088); access code 8346661. 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 four 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; and Guaranty Bank (formerly known as Springfield Fist Community Bank), based in Springfield, Missouri, was acquired by the Company in 2018. 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 December 31, 2024, the Company had $9.0 billion in assets, $6.8 billion in loans and $7.1 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, but are not limited to: (i) the strength of the local, state, national and international economies and financial markets (including effects of inflationary pressures and supply chain constraints); (ii) effects on the U.S. economy resulting from the implementation of policies proposed by the new presidential administration, including tariffs, mass deportations and tax regulations; (iii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or threats thereof (including the Russian invasion of Ukraine and ongoing conflicts in the Middle East), or other adverse 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; (iv) new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB, the Securities and Exchange Commission (the “SEC”) or the PCAOB; (v) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the bank failures in 2023; (vi) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company’s commercial borrowers; (vii) 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; (viii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (ix) unexpected results of acquisitions which may include failure to realize the anticipated benefits of the acquisitions and the possibility that transaction costs may be greater than anticipated; (x) the loss of key executives and employees, talent shortages and employee turnover; (xi) changes in consumer spending; (xii) unexpected outcomes and costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (xiii) the economic impact on the Company and its customers of climate change, natural disasters and exceptional weather occurrences such as tornadoes, floods and blizzards; (xiv) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (xv) credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio and large loans to certain borrowers (including CRE loans); (xvi) the overall health of the local and national real estate market; (xvii) the ability to maintain an adequate level of allowance for credit losses on loans; (xviii) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure; (xix) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (xx) the level of non-performing assets on our balance sheets; (xxi) interruptions involving our information technology and communications systems or third-party servicers; (xxii) the occurrence of fraudulent activity, breaches or failures of our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxiii) changes in the interest rates and repayment rates of the Company’s assets; (xxiv) the effectiveness of the Company’s risk management framework, and (xxv) 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 SEC.

Contact: Todd A. Gipple                                 President                                 Chief Financial Officer                         (309) 743-7745                                 tgipple@qcrh.com

QCR Holding, Inc.
Consolidated Financial Highlights
(Unaudited)
	As of
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
	(dollars in thousands)
CONDENSED BALANCE SHEET
Cash and due from banks	$	91,732		$	103,840		$	92,173		$	80,988		$	97,123
Federal funds sold and interest-bearing deposits		170,592			159,159			102,262			77,020			140,369
Securities, net of allowance for credit losses		1,200,435			1,146,046			1,033,199			1,031,861			1,005,528
Loans receivable held for sale (1)		2,143			167,047			246,124			275,344			2,594
Loans/leases receivable held for investment		6,782,261			6,661,755			6,608,262			6,372,992			6,540,822
Allowance for credit losses		(89,841	)		(86,321	)		(87,706	)		(84,470	)		(87,200	)
Intangibles		11,061			11,751			12,441			13,131			13,821
Goodwill		138,596			138,596			139,027			139,027			139,027
Derivatives		186,781			261,913			194,354			183,888			188,978
Other assets		532,270			524,779			531,855			509,768			497,832
Total assets	$	9,026,030		$	9,088,565		$	8,871,991		$	8,599,549		$	8,538,894
Total deposits	$	7,061,187		$	6,984,633		$	6,764,667		$	6,806,775		$	6,514,005
Total borrowings		569,532			660,344			768,671			489,633			718,295
Derivatives		214,823			285,769			221,798			211,677			214,098
Other liabilities		183,101			181,199			180,536			184,122			205,900
Total stockholders' equity		997,387			976,620			936,319			907,342			886,596
Total liabilities and stockholders' equity	$	9,026,030		$	9,088,565		$	8,871,991		$	8,599,549		$	8,538,894
ANALYSIS OF LOAN PORTFOLIO
Loan/lease mix: (2)
Commercial and industrial - revolving	$	387,991		$	387,409		$	362,115		$	326,129		$	325,243
Commercial and industrial - other		1,295,961			1,321,053			1,370,561			1,374,333			1,390,068
Commercial and industrial - other - LIHTC		218,971			89,028			92,637			96,276			91,710
Total commercial and industrial		1,902,923			1,797,490			1,825,313			1,796,738			1,807,021
Commercial real estate, owner occupied		605,993			622,072			633,596			621,069			607,365
Commercial real estate, non-owner occupied		1,077,852			1,103,694			1,082,457			1,055,089			1,008,892
Construction and land development		395,557			342,335			331,454			410,918			477,424
Construction and land development - LIHTC		917,986			913,841			750,894			738,609			943,101
Multi-family		303,662			324,090			329,239			296,245			284,721
Multi-family - LIHTC		828,448			973,682			1,148,244			1,007,321			711,422
Direct financing leases		17,076			19,241			25,808			28,089			31,164
1-4 family real estate		588,179			587,512			583,542			563,358			544,971
Consumer		146,728			144,845			143,839			130,900			127,335
Total loans/leases	$	6,784,404		$	6,828,802		$	6,854,386		$	6,648,336		$	6,543,416
Less allowance for credit losses		89,841			86,321			87,706			84,470			87,200
Net loans/leases	$	6,694,563		$	6,742,481		$	6,766,680		$	6,563,866		$	6,456,216
ANALYSIS OF SECURITIES PORTFOLIO
Securities mix:
U.S. government sponsored agency securities	$	20,591		$	18,621		$	20,101		$	14,442		$	14,973
Municipal securities		971,567			965,810			885,046			884,469			853,645
Residential mortgage-backed and related securities		50,042			53,488			54,708			56,071			59,196
Asset backed securities		9,224			10,455			12,721			14,285			15,423
Other securities		65,745			39,190			38,464			40,539			41,115
Trading securities (3)		83,529			58,685			22,362			22,258			22,368
Total securities	$	1,200,698		$	1,146,249		$	1,033,402		$	1,032,064		$	1,006,720
Less allowance for credit losses		263			203			203			203			1,192
Net securities	$	1,200,435		$	1,146,046		$	1,033,199		$	1,031,861		$	1,005,528
ANALYSIS OF DEPOSITS
Deposit mix:
Noninterest-bearing demand deposits	$	921,160		$	969,348		$	956,445		$	955,167		$	1,038,689
Interest-bearing demand deposits		4,828,216			4,715,087			4,644,918			4,714,555			4,338,390
Time deposits		953,496			942,847			859,593			875,491			851,950
Brokered deposits		358,315			357,351			303,711			261,562			284,976
Total deposits	$	7,061,187		$	6,984,633		$	6,764,667		$	6,806,775		$	6,514,005
ANALYSIS OF BORROWINGS
Borrowings mix:
Term FHLB advances	$	145,383		$	145,383		$	135,000		$	135,000		$	135,000
Overnight FHLB advances		140,000			230,000			350,000			70,000			300,000
Other short-term borrowings		1,800			2,750			1,600			2,700			1,500
Subordinated notes		233,489			233,383			233,276			233,170			233,064
Junior subordinated debentures		48,860			48,828			48,795			48,763			48,731
Total borrowings	$	569,532		$	660,344		$	768,671		$	489,633		$	718,295

(1)	Loans with a fair value of $0 million, $165.9 million, $243.2 million, $274.8 million and $0 million have been identified for securitization and are included in LHFS at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 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 December 31, 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
		December 31,			September 30,			June 30,			March 31,			December 31,
		2024			2024			2024			2024			2023
		(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income		$	121,642		$	125,420		$	119,746		$	115,049		$	112,248
Interest expense			60,438			65,698			63,583			60,350			56,512
Net interest income			61,204			59,722			56,163			54,699			55,736
Provision for credit losses			5,149			3,484			5,496			2,969			5,199
Net interest income after provision for credit losses		$	56,055		$	56,238		$	50,667		$	51,730		$	50,537
Trust fees		$	3,456		$	3,270		$	3,103		$	3,199		$	3,084
Investment advisory and management fees			1,320			1,229			1,214			1,101			1,052
Deposit service fees			2,228			2,294			1,986			2,022			2,008
Gains on sales of residential real estate loans, net			734			385			540			382			323
Gains on sales of government guaranteed portions of loans, net			49			-			12			24			24
Capital markets revenue			20,552			16,290			17,758			16,457			36,956
Earnings on bank-owned life insurance			797			814			2,964			868			832
Debit card fees			1,555			1,575			1,571			1,466			1,561
Correspondent banking fees			560			507			510			512			465
Loan related fee income			950			949			962			836			845
Fair value gain (loss) on derivatives and trading securities			(1,781	)		(886	)		51			(163	)		(582	)
Other			205			730			218			154			1,161
Total noninterest income		$	30,625		$	27,157		$	30,889		$	26,858		$	47,729
Salaries and employee benefits		$	33,610		$	31,637		$	31,079		$	31,860		$	41,059
Occupancy and equipment expense			6,354			6,168			6,377			6,514			6,789
Professional and data processing fees			5,480			4,457			4,823			4,613			4,223
Restructuring expense			-			1,954			-			-			-
FDIC insurance, other insurance and regulatory fees			1,934			1,711			1,854			1,945			2,115
Loan/lease expense			513			587			151			378			834
Net cost of (income from) and gains/losses on operations of other real estate			23			(42	)		28			(30	)		38
Advertising and marketing			1,886			2,124			1,565			1,483			1,641
Communication and data connectivity			345			333			318			401			449
Supplies			252			278			259			275			333
Bank service charges			635			603			622			568			761
Correspondent banking expense			328			325			363			305			300
Intangibles amortization			691			690			690			690			716
Goodwill impairment			-			431			-			-			-
Payment card processing			516			785			706			646			836
Trust expense			381			395			379			425			413
Other			551			1,129			674			617			431
Total noninterest expense		$	53,499		$	53,565		$	49,888		$	50,690		$	60,938
Net income before income taxes		$	33,181		$	29,830		$	31,668		$	27,898		$	37,328
Federal and state income tax expense			2,956			2,045			2,554			1,172			4,473
Net income		$	30,225		$	27,785		$	29,114		$	26,726		$	32,855
Basic EPS		$	1.80		$	1.65		$	1.73		$	1.59		$	1.96
Diluted EPS		$	1.77		$	1.64		$	1.72		$	1.58		$	1.95
Weighted average common shares outstanding			16,871,652			16,846,200			16,814,814			16,783,348			16,734,080
Weighted average common and common equivalent shares outstanding			17,024,481			16,982,400			16,921,854			16,910,675			16,875,952

QCR Holding, Inc.
Consolidated Financial Highlights
(Unaudited)
		For the Year Ended
		December 31,				December 31,
		2024				2023
		(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income		$	481,857			$	413,410
Interest expense			250,069				192,404
Net interest income			231,788				221,006
Provision for credit losses			17,098				16,539
Net interest income after provision for credit losses		$	214,690			$	204,467
Trust fees		$	13,028			$	11,697
Investment advisory and management fees			4,864				3,864
Deposit service fees			8,530				8,177
Gains on sales of residential real estate loans, net			2,041				1,611
Gains on sales of government guaranteed portions of loans, net			85				54
Capital markets revenue			71,057				92,065
Securities losses, net			-				(451	)
Earnings on bank-owned life insurance			5,443				4,184
Debit card fees			6,167				6,200
Correspondent banking fees			2,089				1,662
Loan related fee income			3,697				3,066
Fair value loss on derivatives and trading securities			(2,779	)			(1,262	)
Other			1,307				1,817
Total noninterest income		$	115,529			$	132,684
Salaries and employee benefits		$	128,186			$	136,619
Occupancy and equipment expense			25,413				25,031
Professional and data processing fees			19,373				16,271
Post-acquisition compensation, transition and integration costs			-				207
Restructuring expense			1,954				-
FDIC insurance, other insurance and regulatory fees			7,444				7,137
Loan/lease expense			1,629				2,868
Net cost of (income from) and gains/losses on operations of other real estate			(21	)			(26	)
Advertising and marketing			7,058				6,042
Communication and data connectivity			1,397				2,063
Supplies			1,064				1,254
Bank service charges			2,428				2,592
Correspondent banking expense			1,321				963
Intangibles amortization			2,761				2,938
Goodwill impairment			431				-
Payment card processing			2,653				2,656
Trust expense			1,580				1,396
Other			2,971				2,520
Total noninterest expense		$	207,642			$	210,531
Net income before income taxes		$	122,577			$	126,620
Federal and state income tax expense			8,727				13,062
Net income		$	113,850			$	113,558
Basic EPS		$	6.77			$	6.79
Diluted EPS		$	6.71			$	6.73
Weighted average common shares outstanding			16,829,004				16,732,406
Weighted average common and common equivalent shares outstanding			16,959,853				16,866,391

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,
	2024			2024			2024			2024			2023				2024			2023
	(dollars in thousands, except per share data)
COMMON SHARE DATA
Common shares outstanding		16,882,045			16,861,108			16,824,985			16,807,056			16,749,254
Book value per common share (1)	$	59.08		$	57.92		$	55.65		$	53.99		$	52.93
Tangible book value per common share (Non-GAAP) (2)	$	50.21		$	49.00		$	46.65		$	44.93		$	43.81
Closing stock price	$	80.64		$	74.03		$	60.00		$	60.74		$	58.39
Market capitalization	$	1,361,368		$	1,248,228		$	1,009,499		$	1,020,861		$	977,989
Market price / book value		136.49	%		127.81	%		107.82	%		112.51	%		100.31	%
Market price / tangible book value		160.59	%		151.07	%		128.62	%		135.18	%		133.29	%
Earnings per common share (basic) LTM (3)	$	6.77		$	6.93		$	6.78		$	6.75		$	6.78
Price earnings ratio LTM (3)		11.91 x			10.68 x			8.85 x			9.00 x			8.61 x
TCE / TA (Non-GAAP) (4)		9.55	%		9.24	%		9.00	%		8.94	%		8.75	%
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Beginning balance	$	976,620		$	936,319		$	907,342		$	886,596		$	828,383
Net income		30,225			27,785			29,114			26,726			32,855
Other comprehensive income (loss), net of tax		(9,628	)		12,057			(368	)		(5,373	)		25,363
Common stock cash dividends declared		(1,013	)		(1,012	)		(1,008	)		(1,008	)		(1,004	)
Other (5)		1,183			1,471			1,239			401			999
Ending balance	$	997,387		$	976,620		$	936,319		$	907,342		$	886,596
REGULATORY CAPITAL RATIOS (6):
Total risk-based capital ratio		14.10	%		13.87	%		14.21	%		14.30	%		14.29	%
Tier 1 risk-based capital ratio		10.57	%		10.33	%		10.49	%		10.50	%		10.27	%
Tier 1 leverage capital ratio		10.73	%		10.50	%		10.40	%		10.33	%		10.03	%
Common equity tier 1 ratio		10.03	%		9.79	%		9.92	%		9.91	%		9.67	%
KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets (annualized)		1.34	%		1.24	%		1.33	%		1.25	%		1.54	%			1.29	%		1.39	%
Return on average total equity (annualized)		12.15	%		11.55	%		12.63	%		11.83	%		15.42	%			12.04	%		13.78	%
Net interest margin		2.95	%		2.90	%		2.82	%		2.82	%		2.90	%			2.88	%		2.97	%
Net interest margin (TEY) (Non-GAAP)(7)		3.43	%		3.37	%		3.27	%		3.25	%		3.32	%			3.33	%		3.35	%
Efficiency ratio (Non-GAAP) (8)		58.26	%		61.65	%		57.31	%		62.15	%		58.90	%			59.78	%		59.52	%
Gross loans/leases held for investment / total assets		75.14	%		73.30	%		74.48	%		74.11	%		76.60	%			75.14	%		76.63	%
Gross loans/leases held for investment / total deposits		96.05	%		95.38	%		97.69	%		93.63	%		100.41	%			96.05	%		100.45	%
Effective tax rate		8.91	%		6.86	%		8.06	%		4.20	%		11.98	%			7.12	%		10.32	%
Full-time equivalent employees		980			976			988			986			996				980			996
AVERAGE BALANCES
Assets	$	9,050,280		$	8,968,653		$	8,776,002		$	8,550,855		$	8,535,732			$	8,837,393		$	8,165,805
Loans/leases		6,839,153			6,840,527			6,779,075			6,598,614			6,483,572				6,764,754			6,337,551
Deposits		7,109,567			6,858,196			6,687,188			6,595,453			6,485,154				6,813,620			6,325,790
Total stockholders' equity		995,012			962,302			921,986			903,371			852,163				945,848			825,557

(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
	December 31, 2024										September 30, 2024										December 31, 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	$	5,617		$	67			4.68	%		$	12,596		$	173			5.37	%		$	18,644		$	257			5.47	%
Interest-bearing deposits at financial institutions		158,151			1,823			4.59	%			145,597			1,915			5.23	%			72,439			986			5.40	%
Investment securities - taxable		375,552			4,230			4.49	%			381,285			4,439			4.64	%			365,686			4,080			4.45	%
Investment securities - nontaxable (1)		829,544			12,286			5.92	%			760,645			10,744			5.65	%			650,069			8,380			5.15	%
Restricted investment securities		33,173			608			7.17	%			42,546			840			7.73	%			40,625			670			6.45	%
Loans (1)		6,839,153			112,325			6.53	%			6,840,527			116,854			6.80	%			6,483,572			105,830			6.48	%
Total earning assets (1)	$	8,241,190		$	131,339			6.34	%		$	8,183,196		$	134,965			6.56	%		$	7,631,035		$	120,203			6.26	%
Interest-bearing deposits	$	4,881,914		$	39,408			3.21	%		$	4,739,757		$	42,180			3.54	%		$	4,465,279		$	37,082			3.29	%
Time deposits		1,248,412			13,868			4.42	%			1,164,560			13,206			4.51	%			982,356			10,559			4.26	%
Short-term borrowings		1,862			22			4.67	%			2,485			32			5.07	%			1,101			15			5.18	%
Federal Home Loan Bank advances		236,525			2,802			4.64	%			445,632			5,972			5.24	%			360,000			4,841			5.26	%
Subordinated debentures		233,419			3,636			6.23	%			233,313			3,616			6.20	%			232,994			3,308			5.68	%
Junior subordinated debentures		48,839			701			5.62	%			48,806			693			5.56	%			48,710			708			5.68	%
Total interest-bearing liabilities	$	6,650,971		$	60,437			3.61	%		$	6,634,553		$	65,699			3.93	%		$	6,090,440		$	56,513			3.68	%
Net interest income (1)				$	70,902									$	69,266									$	63,690
Net interest margin (2)								2.95	%									2.90	%									2.90	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)								3.43	%									3.37	%									3.32	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)								3.40	%									3.34	%									3.29	%
	For the Year Ended
	December 31, 2024										December 31, 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	$	12,788		$	692			5.33	%		$	19,110		$	998			5.22	%
Interest-bearing deposits at financial institutions		119,255			6,077			5.10	%			80,924			4,137			5.11	%
Investment securities - taxable		377,039			17,216			4.55	%			346,579			14,927			4.30	%
Investment securities - nontaxable (1)		745,502			41,843			5.61	%			611,924			28,272			4.62	%
Restricted investment securities		39,293			2,991			7.49	%			39,273			2,346			5.89	%
Loans (1)		6,764,754			449,570			6.65	%			6,337,551			390,967			6.17	%
Total earning assets (1)	$	8,058,631		$	518,389			6.43	%		$	7,435,361		$	441,647			5.94	%
Interest-bearing deposits	$	4,700,762		$	161,584			3.44	%		$	4,191,913		$	121,662			2.90	%
Time deposits		1,153,407			51,547			4.47	%			1,010,827			37,784			3.74	%
Short-term borrowings		1,850			98			5.24	%			2,781			152			6.44	%
Federal Home Loan Bank advances		375,214			19,751			5.18	%			323,904			16,740			5.10	%
Subordinated debentures		233,260			14,314			6.14	%			232,837			13,230			5.68	%
Junior subordinated debentures		48,791			2,775			5.59	%			48,662			2,836			5.75	%
Total interest-bearing liabilities	$	6,513,284		$	250,069			3.83	%		$	5,810,924		$	192,404			3.31	%
Net interest income (1)				$	268,320									$	249,243
Net interest margin (2)								2.88	%									2.97	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)								3.33	%									3.35	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)								3.31	%									3.32	%

(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
	December 31,			September 30,			June 30,			March 31,			December 31,
	2024			2024			2024			2024			2023
	(dollars in thousands, except per share data)
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES
Beginning balance	$	86,321		$	87,706		$	84,470		$	87,200		$	87,669
Change in ACL for transfer of loans to LHFS		93			(1,812	)		498			(3,377	)		266
Credit loss expense		6,832			3,828			4,343			3,736			2,519
Loans/leases charged off		(4,787	)		(3,871	)		(1,751	)		(3,560	)		(3,354	)
Recoveries on loans/leases previously charged off		1,382			470			146			471			100
Ending balance	$	89,841		$	86,321		$	87,706		$	84,470		$	87,200
NONPERFORMING ASSETS
Nonaccrual loans/leases	$	40,080		$	33,480		$	33,546		$	29,439		$	32,753
Accruing loans/leases past due 90 days or more		4,270			1,298			87			142			86
Total nonperforming loans/leases		44,350			34,778			33,633			29,581			32,839
Other real estate owned		661			369			369			784			1,347
Other repossessed assets		543			542			512			962			-
Total nonperforming assets	$	45,554		$	35,689		$	34,514		$	31,327		$	34,186
ASSET QUALITY RATIOS
Nonperforming assets / total assets		0.50	%		0.39	%		0.39	%		0.36	%		0.40	%
ACL for loans and leases / total loans/leases held for investment		1.32	%		1.30	%		1.33	%		1.33	%		1.33	%
ACL for loans and leases / nonperforming loans/leases		202.57	%		248.21	%		260.77	%		285.55	%		265.54	%
Net charge-offs as a % of average loans/leases		0.05	%		0.05	%		0.02	%		0.05	%		0.05	%
INTERNALLY ASSIGNED RISK RATING (1) (2)
Special mention	$	73,636		$	80,121		$	85,096		$	111,729		$	125,308
Substandard (3)		84,930			70,022			80,345			70,841			70,425
Doubtful (3)		-			-			-			-			-
Total Criticized loans (4)	$	158,566		$	150,143		$	165,441		$	182,570		$	195,733
Classified loans as a % of total loans/leases (3)		1.25	%		1.03	%		1.17	%		1.07	%		1.08	%
Total Criticized loans as a % of total loans/leases (4)		2.34	%		2.20	%		2.41	%		2.75	%		2.99	%

(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 Year Ended
		December 31,				September 30,				December 31,				December 31,				December 31,
SELECT FINANCIAL DATA - SUBSIDIARIES		2024				2024				2023				2024				2023
		(dollars in thousands)
TOTAL ASSETS
Quad City Bank and Trust (1)		$	2,588,587			$	2,552,962			$	2,448,957
m2 Equipment Finance, LLC			310,915				349,166				345,682
Cedar Rapids Bank and Trust			2,614,570				2,625,943				2,419,146
Community State Bank			1,531,559				1,519,585				1,426,202
Guaranty Bank			2,342,958				2,360,301				2,281,296
TOTAL DEPOSITS
Quad City Bank and Trust (1)		$	2,126,566			$	2,205,465			$	1,878,375
Cedar Rapids Bank and Trust			1,882,487				1,765,964				1,748,516
Community State Bank			1,256,938				1,269,147				1,169,921
Guaranty Bank			1,824,139				1,778,453				1,771,371
TOTAL LOANS & LEASES
Quad City Bank and Trust (1)		$	2,048,926			$	2,090,856			$	1,983,679
m2 Equipment Finance, LLC			320,237				353,259				350,641
Cedar Rapids Bank and Trust			1,761,467				1,743,809				1,698,447
Community State Bank			1,159,389				1,161,805				1,099,262
Guaranty Bank			1,814,622				1,832,331				1,762,027
TOTAL LOANS & LEASES / TOTAL DEPOSITS
Quad City Bank and Trust (1)			96	%			95	%			106	%
Cedar Rapids Bank and Trust			94	%			99	%			97	%
Community State Bank			92	%			92	%			94	%
Guaranty Bank			99	%			103	%			99	%
TOTAL LOANS & LEASES / TOTAL ASSETS
Quad City Bank and Trust (1)			79	%			82	%			81	%
Cedar Rapids Bank and Trust			67	%			66	%			70	%
Community State Bank			76	%			76	%			77	%
Guaranty Bank			77	%			78	%			77	%
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	%			1.48	%
m2 Equipment Finance, LLC			4.22	%			4.11	%			3.80	%
Cedar Rapids Bank and Trust			1.44	%			1.38	%			1.39	%
Community State Bank			0.98	%			1.06	%			1.23	%
Guaranty Bank			1.25	%			1.14	%			1.18	%
RETURN ON AVERAGE ASSETS
Quad City Bank and Trust (1)			1.09	%			0.76	%			0.67	%			0.88	%			0.92	%
Cedar Rapids Bank and Trust			3.12	%			2.52	%			3.78	%			2.92	%			3.17	%
Community State Bank			1.30	%			1.46	%			1.11	%			1.32	%			1.34	%
Guaranty Bank			0.91	%			1.28	%			1.41	%			1.12	%			1.16	%
NET INTEREST MARGIN PERCENTAGE (2)
Quad City Bank and Trust (1)			3.53	%			3.50	%			3.41	%			3.43	%			3.37	%
Cedar Rapids Bank and Trust			3.95	%			3.88	%			3.84	%			3.84	%			3.83	%
Community State Bank			3.77	%			3.76	%			3.74	%			3.75	%			3.87	%
Guaranty Bank (3)			3.18	%			3.12	%			3.07	%			3.07	%			3.18	%
ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET
INTEREST MARGIN, NET
Cedar Rapids Bank and Trust		$	-			$	-			$	-			$	-			$	(8	)
Community State Bank			(1	)			(1	)			(1	)			(4	)			67
Guaranty Bank			504				496				706				1,698				2,243
QCR Holdings, Inc. (4)			(32	)			(32	)			(32	)			(129	)			(129	)

(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 2.97% for the quarter ended December 31, 2024, 2.94% for the quarter ended September 30, 2024 and 2.95% for the quarter ended December 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
		December 31,				September 30,				June 30,				March 31,				December 31,
GAAP TO NON-GAAP RECONCILIATIONS		2024				2024				2024				2024				2023
		(dollars in thousands, except per share data)
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)
Stockholders' equity (GAAP)		$	997,387			$	976,620			$	936,319			$	907,342			$	886,596
Less: Intangible assets			149,657				150,347				151,468				152,158				152,848
Tangible common equity (non-GAAP)		$	847,730			$	826,273			$	784,851			$	755,184			$	733,748
Total assets (GAAP)		$	9,026,030			$	9,088,565			$	8,871,991			$	8,599,549			$	8,538,894
Less: Intangible assets			149,657				150,347				151,468				152,158				152,848
Tangible assets (non-GAAP)		$	8,876,373			$	8,938,218			$	8,720,523			$	8,447,391			$	8,386,046
Tangible common equity to tangible assets ratio (non-GAAP)			9.55	%			9.24	%			9.00	%			8.94	%			8.75	%

(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)		2024				2024				2024				2024				2023				2024				2023
		(dollars in thousands, except per share data)
Net income (GAAP)		$	30,225			$	27,785			$	29,114			$	26,726			$	32,855			$	113,850			$	113,558
Less non-core items (post-tax) (2):
Income:
Securities gains (losses), net			-				-				-				-				-				-				(356	)
Fair value gain (loss) on derivatives, net			(2,594	)			(542	)			(145	)			(144	)			(460	)			(3,425	)			(997	)
Total non-core income (non-GAAP)		$	(2,594	)		$	(542	)		$	(145	)		$	(144	)		$	(460	)		$	(3,425	)		$	(1,353	)
Expense:
Goodwill impairment			-				431				-				-				-				431				-
Post-acquisition compensation, transition and integration costs			-				-				-				-				-				-				164
Restructuring expense			-				1,544				-				-				-				1,544				-
Total non-core expense (non-GAAP)		$	-			$	1,975			$	-			$	-			$	-			$	1,975			$	164
Adjusted net income (non-GAAP) (1)		$	32,819			$	30,302			$	29,259			$	26,870			$	33,315			$	119,250			$	115,075
ADJUSTED EARNINGS PER COMMON SHARE (1)
Adjusted net income (non-GAAP) (from above)		$	32,819			$	30,302			$	29,259			$	26,870			$	33,315			$	119,250			$	115,075
Weighted average common shares outstanding			16,871,652				16,846,200				16,814,814				16,783,348				16,734,080				16,829,004				16,732,406
Weighted average common and common equivalent shares outstanding			17,024,481				16,982,400				16,921,854				16,910,675				16,875,952				16,959,853				16,866,391
Adjusted earnings per common share (non-GAAP):
Basic		$	1.95			$	1.80			$	1.74			$	1.60			$	1.99			$	7.09			$	6.88
Diluted		$	1.93			$	1.78			$	1.73			$	1.59			$	1.97			$	7.03			$	6.82
ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)
Adjusted net income (non-GAAP) (from above)		$	32,819			$	30,302			$	29,259			$	26,870			$	33,315			$	119,250			$	115,075
Average Assets		$	9,050,280			$	8,968,653			$	8,776,002			$	8,550,855			$	8,535,732			$	8,837,393			$	8,165,805
Adjusted return on average assets (annualized) (non-GAAP)			1.45	%			1.35	%			1.33	%			1.26	%			1.56	%			1.35	%			1.41	%
Adjusted return on average equity (annualized) (non-GAAP)			13.19	%			12.60	%			12.69	%			11.90	%			15.64	%			12.61	%			13.94	%
NET INTEREST MARGIN (TEY) (3)
Net interest income (GAAP)		$	61,204			$	59,722			$	56,163			$	54,699			$	55,736			$	231,788			$	221,006
Plus: Tax equivalent adjustment (4)			9,698				9,544				8,914				8,377				7,954				36,532				28,237
Net interest income - tax equivalent (Non-GAAP)		$	70,902			$	69,266			$	65,077			$	63,076			$	63,690			$	268,320			$	249,243
Less: Acquisition accounting net accretion			471				463				268				363				673				1,565				2,173
Adjusted net interest income		$	70,431			$	68,803			$	64,809			$	62,713			$	63,017			$	266,755			$	247,070
Average earning assets		$	8,241,190			$	8,183,196			$	7,999,044			$	7,807,720			$	7,631,035			$	8,058,631			$	7,435,361
Net interest margin (GAAP)			2.95	%			2.90	%			2.82	%			2.82	%			2.90	%			2.88	%			2.97	%
Net interest margin (TEY) (Non-GAAP)			3.43	%			3.37	%			3.27	%			3.25	%			3.32	%			3.33	%			3.35	%
Adjusted net interest margin (TEY) (Non-GAAP)			3.40	%			3.34	%			3.26	%			3.24	%			3.29	%			3.31	%			3.32	%
EFFICIENCY RATIO (5)
Noninterest expense (GAAP)		$	53,499			$	53,565			$	49,888			$	50,690			$	60,938			$	207,642			$	210,531
Net interest income (GAAP)		$	61,204			$	59,722			$	56,163			$	54,699			$	55,736			$	231,788			$	221,006
Noninterest income (GAAP)			30,625				27,157				30,889				26,858				47,729				115,529				132,684
Total income		$	91,829			$	86,879			$	87,052			$	81,557			$	103,465			$	347,317			$	353,690
Efficiency ratio (noninterest expense/total income) (Non-GAAP)			58.26	%			61.65	%			57.31	%			62.15	%			58.90	%			59.78	%			59.52	%
Adjusted efficiency ratio (core noninterest expense/core total income) (Non-GAAP)			56.25	%			58.45	%			57.19	%			62.01	%			58.57	%			58.37	%			59.18	%

(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.