• QCR Holdings, Inc. Announces Net Income of $23.6 Million for the First Quarter of 2022

    Source: Nasdaq GlobeNewswire / 26 Apr 2022 16:05:01   America/New_York

    First Quarter 2022 Highlights

    • Net income of $23.6 million, or $1.49 per diluted share
    • Adjusted net income (non-GAAP) of $24.4 million, or $1.54 per diluted share
    • Net Interest Margin (“NIM”) of 3.30% and Adjusted NIM (TEY)(non-GAAP) of 3.50%
    • Annualized loan and lease growth of 14.6% for the quarter, excluding SBA Paycheck Protection Program (“PPP”) loans (non-GAAP)
    • Nonperforming assets improved for the quarter and represented a record low of 0.04% of total assets
    • Allowance for credit losses (“ACL”) to total loans/leases of 1.55%

    MOLINE, Ill., April 26, 2022 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced net income of $23.6 million and diluted earnings per share (“EPS”) of $1.49 for the first quarter of 2022, compared to net income of $27.0 million and diluted EPS of $1.71 for the fourth quarter of 2021.

    Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the first quarter of 2022 were $24.4 million and $1.54, respectively. For the fourth quarter of 2021, adjusted net income (non-GAAP) was $27.4 million and adjusted diluted EPS (non-GAAP) was $1.73. For the first quarter of 2021, adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $18.6 million and $1.16, respectively.

     For the Quarter Ended
     March 31,December 31,March 31,
    $ in millions (except per share data) 2022 2021 2021
    Net Income$23.6 $27.0 $18.0 
    Diluted EPS$1.49 $1.71 $1.12 
    Adjusted Net Income (non-GAAP)$24.4 $27.4 $18.6 
    Adjusted Diluted EPS (non-GAAP)$1.54 $1.73 $1.16 

    Adjusted non-GAAP measurements of financial performance exclude non-recurring 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 another solid quarter of net income, driven by exceptional loan growth, an expanding net interest margin, well managed expenses and continued strong credit quality,” said Larry J. Helling, Chief Executive Officer. “Building on the momentum we established last year, we generated robust lending activity again in the first quarter with annualized loan growth of 14.6%.”

    “On April 1st, we successfully completed the acquisition of Guaranty Federal Bancshares, Inc and merged Guaranty Bank into Springfield First Community Bank. We’re eager to continue to grow in the vibrant southwest Missouri region and we look forward to serving our clients and our communities as one bank and one team.”

    Annualized Loan and Lease Growth of 14.6% for the Quarter, excluding PPP Loans (non-GAAP)

    During the first quarter of 2022, the Company’s loans and leases increased $147.7 million to a total of $4.8 billion. Excluding PPP loans (non-GAAP), loan and lease growth during the quarter was $169.6 million or 14.6% on an annualized basis, funded by overnight advances and some excess liquidity. Core deposits (excluding brokered deposits) decreased by $83.3 million during the quarter, driven by typical seasonality with our commercial client base and further rotation from time deposits to interest-bearing demand deposits.

    “Our accelerated loan growth in the first quarter was driven by strength in our traditional commercial lending, leasing and Specialty Finance business,” added Helling. “This is a testament to the economic vibrancy in our markets as well as our relationship-based community banking model, emphasizing the importance of strong relationships with new and existing clients. Given our current pipeline, we are now increasing our targeted loan growth to between 10% and 12% for the full year.”

    Net Interest Income of $45.7 million

    Net interest income for the first quarter of 2022 totaled $45.7 million, compared to $46.5 million for the fourth quarter of 2021 and $42.0 million for the first quarter of 2021. Adjusted net interest income (non-GAAP) during the quarter was $48.5 million, a decrease of $0.7 million, or 1.4%, from the prior quarter, entirely due to lower sequential PPP loan forgiveness fees. Adjusted net interest income (non-GAAP) was $43.7 million for the first quarter of 2021. Acquisition-related net accretion totaled $118 thousand for the first quarter of 2022, up from $88 thousand in the fourth quarter of 2021 and down from $504 thousand for the first quarter of 2021.

    In the first quarter, NIM was 3.30% and tax-equivalent yield (“TEY”) basis (non-GAAP) NIM was 3.50%, compared to 3.29% and 3.50% in the prior quarter, respectively. Adjusted NIM (non-GAAP), which excludes acquisition-related net accretion, was 3.50%, up 0.01% from the prior quarter. The increase in Adjusted NIM (non-GAAP) during the quarter was primarily due to a rotation of excess liquidity into higher average loan/lease balances, which grew $119.4 million. In addition, adjusted NIM also benefited from a decline of 1 basis point in the total cost of interest-bearing funds (due to both mix and rate).

     For the Quarter Ended
     March 31,December 31,March 31,
     2022 2021 2021 
    NIM3.30%3.29%3.26%
    NIM (TEY)(non-GAAP) *3.50%3.50%3.43%
    Adjusted NIM (TEY)(non-GAAP) *3.50%3.49%3.40%
    * See GAAP to non-GAAP reconciliations

    		   

    “Excluding the impact of PPP fees, we expanded our NIM during the first quarter by 4 basis points, supported by a favorable mix in our interest earning assets, lower deposit costs and stable loan yields in this highly competitive lending environment,” said Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer. “With our asset sensitive balance sheet, we expect continued NIM expansion in this rising rate environment.”

    Noninterest Income of $15.6 million

    Noninterest income for the first quarter of 2022 totaled $15.6 million, compared to $23.0 million for the fourth quarter of 2021. The decrease was primarily due to a $6.6 million decline in capital markets revenue from swap fees due to client project delays caused by ongoing supply chain disruptions and inflationary pressures. Wealth management revenue was $4.0 million for the quarter, up slightly from the fourth quarter of 2021.

    “Capital markets revenue totaled $6.4 million for the quarter, which was below our guidance due to delays in funding low-income housing tax credit projects,” added Gipple. “Capital markets revenue has averaged approximately $13 million per quarter for the last three years. Given our solid pipeline of transactions, but recognizing the project delays caused by ongoing supply chain disruptions and inflationary pressures, we are expecting this source of fee income to be in a range of $13 to $15 million per quarter for the remainder of 2022.”

    Noninterest Expenses of $38.3 million

    Noninterest expense for the first quarter of 2022 totaled $38.3 million, including acquisition related costs of $1.9 million, compared to $39.4 million for the fourth quarter of 2021 and $37.2 million for the first quarter of 2021. The linked-quarter decrease was due to lower salary and benefits expense of $1.2 million, the result of a decrease in variable compensation related to the lower than expected capital markets production. In addition, lower advertising and marketing expenses were partially offset by higher acquisition costs.  

    Asset Quality Remains Excellent

    Nonperforming assets (“NPAs”) totaled $2.7 million at the end of the first quarter, an improvement over the fourth quarter of 2021. The ratio of NPAs to total assets improved to 0.04% on March 31, 2022, compared to 0.05% on December 31, 2021, and 0.25% on March 31, 2021. In addition, the Company’s criticized loans and classified loans to total loans and leases decreased to 2.45% and 1.13%, respectively, from 2.47% and 1.14% as of December 31, 2021.

    The Company recorded a $2.9 million negative provision for credit losses in the first quarter of 2022, primarily due to continued strong asset quality and a corresponding reduction in the qualitative factor related to the pandemic. As of March 31, 2022, the ACL on total loans/leases was 1.55%, compared to 1.68% as of December 31, 2021.

    Continued Strong Capital Levels

    As of March 31, 2022, the Company’s total risk-based capital ratio was 14.63%, the common equity tier 1 ratio was 11.38% and the tangible common equity to tangible assets ratio (non-GAAP) was 9.60%. By comparison, these respective ratios were 14.77%, 11.46% and 9.87% as of December 31, 2021. The Company’s accumulated other comprehensive income (“AOCI”) declined $27.3 million during the first quarter due to a decrease in the value of its available for sale securities portfolio and certain derivatives resulting from sharp increases in interest rates during the quarter. While AOCI and the resumption of the share repurchase program did reduce the Company’s tangible common equity, solid earnings partially offset this impact, which led to a decline of only 1.2% in tangible book value.  

    The Company temporarily suspended its share repurchase program due to the Guaranty acquisition. The Company resumed its share repurchase program after Guaranty shareholder approval of the merger with the Company and purchased and retired 77,500 shares at an average price of $56.98 per share. The Company has approximately 328,000 shares remaining on its authorized repurchase program.

    Focus on Three Strategic Long-Term Initiatives

    As part of the Company’s ongoing efforts to grow earnings and drive attractive long-term returns for shareholders, it continues to operate under three key strategic long-term initiatives:

    • Generate organic loan and lease growth of 9% per year, funded by core deposits;
    • Grow fee-based income by at least 6% per year; and
    • Limit annual operating expense growth to 5% per year.

    Conference Call Details

    The Company will host an earnings call/webcast tomorrow, April 27, 2022, 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 May 4, 2022. The replay access information is 877-344-7529 (international 412-317-0088); access code 3884128. A webcast of the teleconference can be accessed at the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

    About Us
    QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly-owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018, and Guaranty Bank, also based in Springfield, Missouri, was acquired by the Company and merged with Springfield First Community Bank 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 Milwaukee, Wisconsin, and also provides correspondent banking services. Including the Guaranty Bank acquisition, the Company now has 40 locations in Iowa, Missouri, Wisconsin and Illinois. As of March 31, 2022, the Company had approximately $6.2 billion in assets, $4.8 billion in loans and $4.8 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

    Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “predict,” “suggest,” “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should” 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, 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; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of LIBOR phase-out); (vi) increased competition in the financial services sector 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; and (xiii) 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.

    Contacts:  
    Todd A. Gipple Kim K. Garrett
    President Vice President
    Chief Operating Officer Corporate Communications
    Chief Financial Officer Investor Relations Manager
    (309) 743-7745 (319) 743-7006
    tgipple@qcrh.com kgarrett@qcrh.com                          

                    



    QCR Holdings, Inc.  
    Consolidated Financial Highlights 
    (Unaudited) 
     As of 
     March 31, December 31,September 30,June 30,March 31, 
      2022 2021 2021 2021 2021 
           
     (dollars in thousands) 
           
    CONDENSED BALANCE SHEET      
           
    Cash and due from banks$50,540$37,490$57,310$55,598$78,814 
    Federal funds sold and interest-bearing deposits 66,390 87,662 70,826 88,780 55,056 
    Securities, net of allowance for credit losses 823,311 810,215 828,719 810,445 799,825 
    Net loans/leases 4,753,082 4,601,411 4,519,060 4,338,811 4,279,220 
    Intangibles 8,856 9,349 9,857 10,365 10,873 
    Goodwill 74,066 74,066 74,066 74,066 74,066 
    Derivatives 107,326 222,220 198,393 193,395 122,668 
    Other assets 292,248 253,719 256,277 255,952 246,872 
    Total assets$ 6,175,819$ 6,096,132$ 6,014,508$ 5,827,412$ 5,667,394 
           
    Total deposits$4,839,689$4,922,772$4,871,828$4,688,935$4,631,782 
    Total borrowings 443,270 170,805 183,514 198,908 188,601 
    Derivatives 116,193 225,135 201,450 196,092 125,863 
    Other liabilities 108,743 100,410 107,902 113,001 112,429 
    Total stockholders' equity 667,924 677,010 649,814 630,476 608,719 
    Total liabilities and stockholders' equity$ 6,175,819$ 6,096,132$ 6,014,508$ 5,827,412$ 5,667,394 
           
    ANALYSIS OF LOAN PORTFOLIO      
    Loan/lease mix:      
    Commercial and industrial - revolving$263,441$248,483$175,155$182,882$168,842 
    Commercial and industrial - other 1,374,221 1,346,602 1,465,580 1,505,384 1,616,144 
    Total commercial and industrial 1,637,662 1,595,085 1,640,735 1,688,266 1,784,986 
    Commercial real estate, owner occupied 439,257 421,701 434,014 427,734 461,272 
    Commercial real estate, non-owner occupied 679,898 646,500 644,850 618,879 610,582 
    Construction and land development 863,116 918,571 852,418 708,289 607,798 
    Multi-family 711,682 600,412 529,727 466,804 396,272 
    Direct financing leases 43,330 45,191 50,237 56,153 60,134 
    1-4 family real estate 379,613 377,361 376,067 382,142 368,927 
    Consumer 73,310 75,311 71,682 69,438 71,080 
    Total loans/leases$4,827,868$4,680,132$4,599,730$4,417,705$4,361,051 
    Less allowance for credit losses 74,786 78,721 80,670 78,894 81,831 
    Net loans/leases$ 4,753,082$ 4,601,411$ 4,519,060$ 4,338,811$ 4,279,220 
           
    ANALYSIS OF SECURITIES PORTFOLIO      
    Securities mix:      
    U.S. government sponsored agency securities$21,380$23,328$23,689$14,670$14,581 
    Municipal securities 667,245 639,799 649,486 641,603 614,649 
    Residential mortgage-backed and related securities 86,381 94,323 100,744 106,139 118,051 
    Asset backed securities 23,233 27,124 30,607 31,778 39,815 
    Other securities 25,270 25,839 24,367 16,429 12,903 
    Total securities$823,509$810,413$828,893$810,619$799,999 
    Less allowance for credit losses 198 198 174 174 174 
    Net securities$ 823,311$ 810,215$ 828,719$ 810,445$ 799,825 
           
    ANALYSIS OF DEPOSITS      
    Deposit mix:      
    Noninterest-bearing demand deposits$1,275,493$1,268,788$1,342,273$1,258,885$1,269,578 
    Interest-bearing demand deposits 3,181,685 3,232,633 3,086,711 2,976,696 2,916,054 
    Time deposits 382,268 421,348 441,743 452,171 445,067 
    Brokered deposits 243 3 1,101 1,183 1,084 
    Total deposits$ 4,839,689$ 4,922,772$ 4,871,828$ 4,688,935$ 4,631,782 
           
    ANALYSIS OF BORROWINGS      
    Borrowings mix:      
    Overnight FHLB advances (1)$290,000$15,000$30,000$40,000$25,000 
    Other short-term borrowings 1,190 3,800 1,600 7,070 6,840 
    Subordinated notes 113,890 113,850 113,811 113,771 118,731 
    Junior subordinated debentures 38,190 38,155 38,103 38,067 38,030 
    Total borrowings$ 443,270$ 170,805$ 183,514$ 198,908$ 188,601 
           
    (1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 0.53%.  
           



    QCR Holdings, Inc.  
    Consolidated Financial Highlights 
    (Unaudited) 
       For the Quarter Ended 
       March 31,December 31,September 30,June 30,March 31, 
        2022  2021  2021  2021  2021 
             
       (dollars in thousands, except per share data) 
             
    INCOME STATEMENT       
    Interest income $51,062 $52,020 $51,667 $48,903 $47,565 
    Interest expense  5,329  5,507  5,438  5,387  5,590 
    Net interest income  45,733  46,513  46,229  43,516  41,975 
    Provision for credit losses  (2,916) (3,227) -  -  6,713 
    Net interest income after provision for loan/lease losses $ 48,649 $ 49,740 $ 46,229 $ 43,516 $ 35,262 
             
             
    Trust department fees $2,963 $2,843 $2,714 $2,848 $2,801 
    Investment advisory and management fees  1,036  1,047  1,054  1,039  940 
    Deposit service fees  1,555  1,644  1,588  1,492  1,408 
    Gain on sales of residential real estate loans  493  922  954  1,184  1,337 
    Gain on sales of government guaranteed portions of loans  19  227  -  -  - 
    Swap fee income/capital markets revenue  6,422  12,982  24,885  9,568  13,557 
    Securities gains (losses), net  -  -  -  (88) - 
    Earnings on bank-owned life insurance  346  470  446  451  471 
    Debit card fees  1,007  1,072  1,085  1,084  975 
    Correspondent banking fees  277  266  265  269  314 
    Other   1,515  1,512  1,661  1,449  1,686 
    Total noninterest income $ 15,633 $ 22,985 $ 34,652 $ 19,296 $ 23,489 
             
             
    Salaries and employee benefits $23,627 $24,809 $28,207 $23,044 $24,847 
    Occupancy and equipment expense  3,937  3,723  4,122  3,965  4,108 
    Professional and data processing fees  3,671  3,866  3,568  3,702  3,443 
    Acquisition costs  1,851  624  -  -  - 
    Disposition costs  -  5  -  -  8 
    FDIC insurance, other insurance and regulatory fees  1,310  1,316  1,108  986  1,065 
    Loan/lease expense  267  606  308  457  300 
    Net cost of (income from) and gains/losses on operations of other real estate  (1) -  (1,346) (113) 39 
    Advertising and marketing  761  1,679  1,095  853  627 
    Bank service charges  541  553  525  572  523 
    Correspondent banking expense  199  200  201  198  200 
    Intangibles amortization  493  508  508  508  508 
    Other   1,669  1,523  3,091  1,503  1,560 
    Total noninterest expense $ 38,325 $ 39,412 $ 41,387 $ 35,675 $ 37,228 
             
    Net income before income taxes $ 25,957 $ 33,313 $ 39,494 $ 27,137 $ 21,523 
    Federal and state income tax expense  2,333  6,304  7,929  4,788  3,541 
    Net income  $ 23,624 $ 27,009 $ 31,565 $ 22,349 $ 17,982 
             
    Basic EPS $1.51 $1.73 $2.02 $1.41 $1.14 
    Diluted EPS $1.49 $1.71 $1.99 $1.39 $1.12 
             
             
    Weighted average common shares outstanding  15,625,112  15,582,276  15,635,123  15,813,932  15,803,643 
    Weighted average common and common equivalent shares outstanding  15,852,256  15,838,246  15,869,798  16,045,239  16,025,548 
             



    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
     As of and for the Quarter Ended 
     March 31,December 31,September 30,June 30,March 31, 
      2022  2021  2021  2021  2021  
           
     (dollars in thousands, except per share data)
           
    COMMON SHARE DATA      
    Common shares outstanding 15,579,605  15,613,460  15,590,428  15,763,522  15,843,732  
    Book value per common share (1)$42.87 $43.36 $41.68 $40.00 $38.42  
    Tangible book value per common share (Non-GAAP) (2)$37.55 $38.02 $36.30 $34.64 $33.06  
    Closing stock price$56.59 $56.00 $51.44 $48.09 $47.22  
    Market capitalization$881,650 $874,354 $801,972 $758,068 $748,141  
    Market price / book value 132.00% 129.15% 123.42% 120.24% 122.90% 
    Market price / tangible book value 150.71% 147.30% 141.72% 138.83% 142.83% 
    Earnings per common share (basic) LTM (3)$6.68 $6.30 $5.73 $4.81 $4.27  
    Price earnings ratio LTM (3)8.47 x8.88 x8.98 x10.00 x11.06 x 
    TCE / TA (Non-GAAP) (4) 9.60% 9.87% 9.54% 9.51% 9.38% 
           
           
    CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY  
    Beginning balance$677,010 $649,814 $630,476 $608,719 $593,793  
    Cumulative effect from the adoption of ASU 2016-13 "CECL" -  -  -  -  (937) 
    Net income 23,624  27,009  31,565  22,349  17,982  
    Other comprehensive income (loss), net of tax (27,340) 295  (2,546) 4,179  (1,751) 
    Common stock cash dividends declared (938) (935) (946) (951) (949) 
    Repurchase and cancellation of shares of common stock as a result of a share repurchase program (4,416) -  (9,367) (4,800) -  
    Other (5) (16) 827  632  980  581  
    Ending balance$ 667,924 $ 677,010 $ 649,814 $ 630,476 $ 608,719  
           
           
    REGULATORY CAPITAL RATIOS (6):      
    Total risk-based capital ratio 14.63% 14.77% 14.64% 14.72% 14.85% 
    Tier 1 risk-based capital ratio 11.38% 11.46% 11.26% 11.26% 11.31% 
    Tier 1 leverage capital ratio 10.78% 10.46% 10.28% 10.29% 10.10% 
    Common equity tier 1 ratio 10.72% 10.76% 10.55% 10.52% 10.55% 
           
           
    KEY PERFORMANCE RATIOS AND OTHER METRICS       
    Return on average assets (annualized) 1.55% 1.76% 2.11% 1.56% 1.27% 
    Return on average total equity (annualized) 13.81% 16.23% 19.30% 14.33% 11.91% 
    Net interest margin 3.30% 3.29% 3.36% 3.28% 3.26% 
    Net interest margin (TEY) (Non-GAAP)(7) 3.50% 3.50% 3.56% 3.46% 3.43% 
    Efficiency ratio (Non-GAAP) (8) 62.45% 56.71% 51.17% 56.80% 56.87% 
    Gross loans and leases / total assets 78.17% 76.77% 76.48% 75.81% 76.95% 
    Gross loans and leases / total deposits 99.76% 95.07% 94.41% 94.22% 94.15% 
    Effective tax rate 8.99% 18.92% 20.08% 17.64% 16.45% 
    Full-time equivalent employees 749  726  724  725  720  
           
           
    AVERAGE BALANCES       
    Assets$6,115,127 $6,121,446 $5,982,583 $5,761,314 $5,691,097  
    Loans/leases 4,727,478  4,608,111  4,529,136  4,412,322  4,271,782  
    Deposits 4,903,354  4,983,869  4,779,876  4,709,732  4,628,889  
    Total stockholders' equity 684,126  665,698  654,186  624,000  604,012  
           
           
           
    (1) Includes accumulated other comprehensive income (loss).     
    (2) Includes accumulated other comprehensive income (loss) and excludes intangible assets (Non-GAAP).  
    (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 Holdings, Inc.  
    Consolidated Financial Highlights 
    (Unaudited) 
    ANALYSIS OF NET INTEREST INCOME AND MARGIN            
                  
      For the Quarter Ended 
      March 31, 2022 December 31, 2021 March 31, 2021 
      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 $4,564$20.15% $3,334$10.09% $1,847$10.05% 
    Interest-bearing deposits at financial institutions 69,328 350.20%  161,514 630.15%  116,446 370.13% 
    Securities (1)  802,260 7,6823.83%  810,334 7,5143.70%  810,059 7,0503.48% 
    Restricted investment securities 22,183 2815.06%  18,929 2314.78%  18,064 2194.84% 
    Loans (1)  4,727,478 45,9953.95%  4,608,111 47,0104.05%  4,271,782 42,5254.04% 
    Total earning assets (1)$5,625,813$53,9953.88% $5,602,222$54,8193.89% $5,218,198$49,8323.86% 
                  
    Interest-bearing deposits$3,228,083$2,3380.29% $3,231,477$2,4010.29% $2,981,306$1,9860.27% 
    Time deposits  398,897 7990.81%  442,835 9630.86%  448,035 1,4411.30% 
    Short-term borrowings 1,951 -0.05%  2,484 10.12%  7,141 10.07% 
    Federal Home Loan Bank advances 85,778 820.38%  4,141 30.31%  13,078 90.28% 
    Subordinated debentures 113,868 1,5545.46%  113,829 1,5545.46%  118,706 1,5945.37% 
    Junior subordinated debentures 38,171 5565.83%  38,132 5845.99%  38,007 5595.88% 
    Total interest-bearing liabilities$3,866,748$5,3290.56% $3,832,898$5,5060.57% $3,606,273$5,5900.63% 
                  
    Net interest income (1) $48,666   $49,313   $44,242  
    Net interest margin (2)  3.30%   3.29%   3.26% 
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.50%   3.50%   3.43% 
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) 3.50%   3.49%   3.40% 
                  
                  
                  
    (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 Holdings, Inc.  
    Consolidated Financial Highlights 
    (Unaudited) 
     As of 
     March 31,December 31,September 30,June 30,March 31, 
      2022  2021  2021  2021  2021  
           
     (dollars in thousands, except per share data) 
           
    ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES      
    Beginning balance$78,721 $80,670 $78,894 $81,831 $84,376  
    Adoption of ASU 2016-13 "CECL" - Day 1 adjustment -  -  -  -  (8,102) 
    Provision charged to expense (3,849) (2,045) 1,895  (141) 5,993  
    Loans/leases charged off (456) (375) (287) (3,163) (713) 
    Recoveries on loans/leases previously charged off 370  471  168  367  277  
    Ending balance$ 74,786 $ 78,721 $ 80,670 $ 78,894 $ 81,831  
           
           
    NONPERFORMING ASSETS       
    Nonaccrual loans/leases$2,744 $2,759 $6,818 $8,230 $13,863  
    Accruing loans/leases past due 90 days or more 4  1  14  57  -  
    Total nonperforming loans/leases 2,748  2,760  6,832  8,287  13,863  
    Other real estate owned -  -  -  1,820  173  
    Other repossessed assets -  -  -  -  50  
    Total nonperforming assets$ 2,748 $ 2,760 $ 6,832 $ 10,107 $ 14,086  
           
           
    ASSET QUALITY RATIOS      
    Nonperforming assets / total assets 0.04% 0.05% 0.11% 0.17% 0.25% 
    ACL for loans and leases / total loans/leases 1.55% 1.68% 1.75% 1.79% 1.88% 
    ACL for loans and leases / nonperforming loans/leases 2721.47% 2852.21% 1180.77% 952.02% 590.28% 
    Net charge-offs as a % of average loans/leases 0.00% 0.00% 0.00% 0.06% 0.01% 
           
           
           
    INTERNALLY ASSIGNED RISK RATING (1)      
    Special mention (rating 6)$63,622 $62,510 $58,634 $51,613 $53,466  
    Substandard (rating 7) 54,491  53,159  59,402  79,719  84,982  
    Doubtful (rating 8) -  -  -  -  -  
     $118,113 $115,669 $118,036 $131,332 $138,448  
           
    Criticized loans (2)$118,113 $115,669 $118,036 $131,332 $138,448  
    Classified loans (3) 54,491  53,159  59,402  79,719  84,982  
           
    Criticized loans as a % of total loans/leases 2.45% 2.47% 2.57% 2.97% 3.17% 
    Classified loans as a % of total loans/leases 1.13% 1.14% 1.29% 1.80% 1.95% 
           
           
    (1) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass (Rating 2) for the government guaranteed portion.
    (2) Criticized loans are defined as C&I and CRE loans with internally assigned risk ratings of 6, 7, or 8, regardless of performance. 
    (3) Classified loans are defined as C&I and CRE loans with internally assigned risk ratings of 7 or 8, regardless of performance. 
           



    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
       For the Quarter Ended
       March 31,  December 31, March 31, 
     SELECT FINANCIAL DATA - SUBSIDIARIES  2022   2021   2021  
       (dollars in thousands)
             
     TOTAL ASSETS       
     Quad City Bank and Trust (1) $2,195,894  $2,142,345  $2,101,634  
     m2 Equipment Finance, LLC  281,666   266,588   245,842  
     Cedar Rapids Bank and Trust  1,947,737   2,030,279   1,847,070  
     Community State Bank - Ankeny  1,184,708   1,168,606   1,041,861  
     Springfield First Community Bank  956,345   882,885   818,605  
             
     TOTAL DEPOSITS       
     Quad City Bank and Trust (1) $1,930,935  $1,849,313  $1,841,518  
     Cedar Rapids Bank and Trust  1,397,976   1,504,992   1,362,927  
     Community State Bank - Ankeny  1,013,928   1,020,548   912,419  
     Springfield First Community Bank  555,559   590,164   602,274  
             
     TOTAL LOANS & LEASES       
     Quad City Bank and Trust (1) $1,692,218  $1,650,234  $1,568,131  
     m2 Equipment Finance, LLC  285,871   270,274   249,478  
     Cedar Rapids Bank and Trust  1,478,514   1,437,808   1,382,336  
     Community State Bank - Ankeny  912,996   866,952   743,892  
     Springfield First Community Bank  744,140   725,139   666,692  
             
     TOTAL LOANS & LEASES / TOTAL DEPOSITS       
     Quad City Bank and Trust (1)  88%  89%  85% 
     Cedar Rapids Bank and Trust  106%  96%  101% 
     Community State Bank - Ankeny  90%  85%  82% 
     Springfield First Community Bank  134%  123%  111% 
             
             
     TOTAL LOANS & LEASES / TOTAL ASSETS       
     Quad City Bank and Trust (1)  77%  77%  75% 
     Cedar Rapids Bank and Trust  76%  71%  75% 
     Community State Bank - Ankeny  77%  74%  71% 
     Springfield First Community Bank  78%  82%  81% 
             
     ACL ON LOANS/LEASES AS A PERCENTAGE OF LOANS/LEASES       
     Quad City Bank and Trust (1)  1.69%  1.82%  1.98% 
     m2 Equipment Finance, LLC  3.31%  3.55%  3.73% 
     Cedar Rapids Bank and Trust  1.61%  1.73%  2.05% 
     Community State Bank - Ankeny  1.55%  1.69%  1.74% 
     Springfield First Community Bank  1.11%  1.27%  1.43% 
             
     RETURN ON AVERAGE ASSETS        
     Quad City Bank and Trust (1)  1.86%  1.86%  1.35% 
     Cedar Rapids Bank and Trust  2.25%  2.56%  2.45% 
     Community State Bank - Ankeny  1.42%  1.50%  0.81% 
     Springfield First Community Bank  1.40%  1.82%  1.16% 
             
     NET INTEREST MARGIN PERCENTAGE (2)       
     Quad City Bank and Trust (1)  3.50%  3.48%  3.20% 
     Cedar Rapids Bank and Trust (3)  3.60%  3.66%  3.55% 
     Community State Bank - Ankeny (4)  3.62%  3.52%  3.70% 
     Springfield First Community Bank (5)  3.38%  3.49%  3.55% 
             
     ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET     
     INTEREST MARGIN, NET       
     Cedar Rapids Bank and Trust $51  $21  $13  
     Community State Bank - Ankeny  33   30   317  
     Springfield First Community Bank  69   89   211  
     QCR Holdings, Inc. (6)  (35)  (52)  (37) 
             
    (1)Quad City Bank and Trust figures 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% tax rate.
             
    (3)Cedar Rapids Bank and Trust's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 3.54% for the quarter ended March 31, 2022, 3.65% for the quarter ended December 31, 2021 and 3.47% for the quarter ended March 31, 2021.
             
    (4)Community State Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 3.62% for the quarter ended March 31, 2022, 3.50% for the quarter ended December 31, 2021 and 3.54% for the quarter ended March 31, 2021.
             
    (5)Springfield First Community Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 3.41% for the quarter ended March 31, 2022, 3.50% for the quarter ended December 31, 2021 and 3.49% for the quarter ended March 31, 2021.
             
    (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 Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
      As of
      March 31, December 31, September 30, June 30, March 31,
    GAAP TO NON-GAAP RECONCILIATIONS  2022   2021   2021   2021   2021 
      (dollars in thousands, except per share data)
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)          
               
    Stockholders' equity (GAAP) $667,924  $677,010  $649,814  $630,476  $608,719 
    Less: Intangible assets  82,922   83,415   83,923   84,431   84,939 
    Tangible common equity (non-GAAP) $585,002  $593,595  $565,891  $546,045  $523,780 
               
    Total assets (GAAP) $6,175,819  $6,096,132  $6,014,508  $5,827,412  $5,667,394 
    Less: Intangible assets  82,922   83,415   83,923   84,431   84,939 
    Tangible assets (non-GAAP) $6,092,897  $6,012,717  $5,930,585  $5,742,981  $5,582,455 
               
    Tangible common equity to tangible assets ratio (non-GAAP) 9.60%  9.87%  9.54%  9.51%  9.38%
               
               
               
    (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 Holdings, Inc.  
    Consolidated Financial Highlights 
    (Unaudited) 
    GAAP TO NON-GAAP RECONCILIATIONS For the Quarter Ended 
      March 31, December 31, September 30, June 30, March 31, 
    ADJUSTED NET INCOME (1)  2022   2021   2021   2021   2021  
      (dollars in thousands, except per share data)
                
    Net income (GAAP) $23,624  $27,009  $31,565  $22,349  $17,982  
                
    Less non-core items (post-tax) (2):           
    Income:           
    Securities gains(losses), net  -   -   -   (69)  -  
    Mark to Market gains (losses) on derivatives, net  715   77   (13)  (58)  129  
    Gain on sale of loan  -   -   28   -   -  
    Total non-core income (non-GAAP) $715  $77  $15  $(127) $129  
                
    Expense:           
    Disposition costs  -   3   -   -   7  
    Acquisition costs (4)  1,462   493   -   -   -  
    Separation agreement  -   -   -   -   734  
    Total non-core expense (non-GAAP) $1,462  $496  $-  $-  $741  
    Adjusted net income (non-GAAP) (1) $ 24,371  $ 27,428  $ 31,550  $ 22,476  $ 18,594  
                
    ADJUSTED EARNINGS PER COMMON SHARE (1)           
                
    Adjusted net income (non-GAAP) (from above) $24,371  $27,428  $31,550  $22,476  $18,594  
                
    Weighted average common shares outstanding  15,625,112   15,582,276   15,635,123   15,813,932   15,803,643  
    Weighted average common and common equivalent shares outstanding  15,852,256   15,838,246   15,869,798   16,045,239   16,025,548  
                
    Adjusted earnings per common share (non-GAAP):           
    Basic $ 1.56  $ 1.76  $ 2.02  $ 1.42  $ 1.18  
    Diluted $ 1.54  $ 1.73  $ 1.99  $ 1.40  $ 1.16  
                
    ADJUSTED RETURN ON AVERAGE ASSETS (1)           
                
    Adjusted net income (non-GAAP) (from above) $24,371  $27,428  $31,550  $22,476  $18,594  
                
    Average Assets $6,115,127  $6,121,446  $5,982,583  $5,761,314  $5,691,097  
                
    Adjusted return on average assets (annualized) (non-GAAP)  1.59%  1.79%  2.11%  1.56%  1.31% 
                
    NET INTEREST MARGIN (TEY) (4)           
                
    Net interest income (GAAP) $45,733  $46,513  $46,229  $43,516  $41,975  
                
    Plus: Tax equivalent adjustment (3)  2,933   2,800   2,708   2,444   2,267  
                
    Net interest income - tax equivalent (Non-GAAP) $48,666  $49,313  $48,937  $45,960  $44,242  
                
    Less: Acquisition accounting net accretion  118   88   456   291   504  
                
    Adjusted net interest income $48,548  $49,225  $48,481  $45,669  $43,738  
                
    Average earning assets $5,625,813  $5,602,222  $5,451,571  $5,320,881  $5,218,198  
                
    Net interest margin (GAAP)  3.30%  3.29%  3.36%  3.28%  3.26% 
    Net interest margin (TEY) (Non-GAAP)  3.50%  3.50%  3.56%  3.46%  3.43% 
    Adjusted net interest margin (TEY) (Non-GAAP)  3.50%  3.49%  3.53%  3.44%  3.40% 
                
    EFFICIENCY RATIO (5)           
                
    Noninterest expense (GAAP) $38,325  $39,412  $41,387  $35,675  $37,228  
                
    Net interest income (GAAP) $45,733  $46,513  $46,229  $43,516  $41,975  
    Noninterest income (GAAP)  15,633   22,985   34,652   19,296   23,489  
    Total income $61,366  $69,498  $80,881  $62,812  $65,464  
                
    Efficiency ratio (noninterest expense/total income) (Non-GAAP)  62.45%  56.71%  51.17%  56.80%  56.87% 
                
    LOAN GROWTH ANNUALIZED, EXCLUDING PPP LOANS           
    Total loans and leases $4,827,868  $4,680,132  $4,599,730  $4,417,705  $4,361,051  
    Less: PPP loans  6,340   28,181   83,575   147,506   243,860  
    Total loans and leases, excluding PPP loans $4,821,528  $4,651,951  $4,516,155  $4,270,199  $4,117,191  
                
    Loan growth annualized, excluding PPP loans  14.58%  12.03%  23.04%  14.87%  14.00% 
                
                
    (1) Adjusted net income, Adjusted net income attributable to QCR Holdings, Inc. common stockholders, Adjusted earnings per common share and Adjusted return on average assets are
    non-GAAP financial measures. The Company's management believes that these measurements are important to investors as they exclude 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, this non-GAAP measure is reconciled to net income, which is
    the most directly comparable GAAP financial measure.           
    (2) Nonrecurring items (post-tax) are calculated using an estimated effective tax rate of 21%.       
    (3) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21%.     
    (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.           

     


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