• QCR Holdings, Inc. Announces Second Quarter 2022 Results

    Source: Nasdaq GlobeNewswire / 26 Jul 2022 15:05:02   America/Chicago

    Second Quarter 2022 Highlights

    • Completed the acquisition of Guaranty Federal Bancshares, Inc. adding approximately $1.3 billion in assets, $808 million in loans and $1.1 billion in deposits
    • Reported net income of $15.2 million, or $0.87 per diluted share
    • Adjusted net income (non-GAAP) of $30.4 million, or $1.73 per diluted share
    • Acquisition/Post-acquisition related expenses and CECL Day 2 provision totaled $15.5 million, post-tax, or $0.88 per diluted share
    • Net Interest Margin (“NIM”) of 3.53% and Adjusted NIM (TEY)(non-GAAP) of 3.74% expanded significantly from the prior quarter by 23 and 24 basis points, respectively
    • Capital Markets Revenue from Swap Fees of $13.0 million doubled from the first quarter of 2022
    • Annualized loan and lease growth of 14.0% for the quarter, excluding loan balances acquired from the Guaranty Bank transaction and SBA Paycheck Protection Program (“PPP”) loans (non-GAAP)
    • Repurchased 602,500 shares at an average price of $54.80 per share

    MOLINE, Ill., July 26, 2022 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced net income of $15.2 million and diluted earnings per share (“EPS”) of $0.87 for the second quarter of 2022, compared to net income of $23.6 million and diluted EPS of $1.49 for the first quarter of 2022. Included in the second quarter of 2022 results were $5.7 million of acquisition/post-acquisition related expenses and $9.8 million of CECL Day 2 provision, both post-tax. The CECL Day 2 provision was required to establish the initial credit loss allowances for the acquired non-PCD loan portfolio and off-balance sheet exposure as a result of the acquisition of Guaranty Federal Bancshares, which closed on April 1, 2022.

       
       
    $ in millions (except per share data)For the Quarter
    Ended
    June 30, 2022    		Per Diluted
    Share
    Reported Net Income (GAAP)$15.2 $0.87 
    Acquisition/Post-Acquisition Related Expenses (Post-Tax)$5.7 $0.32 
    CECL Day 2 Provision (Post-Tax)*$9.8 $0.56 
    Other (Post-Tax)$(0.3)$(0.02)
    Adjusted Net Income (non-GAAP, see below)$30.4 $1.73 

    *CECL Day 2 provision to establish the initial non-PCD loan and off-balance sheet exposure credit loss allowances under ASU 2016-13, Financial Instruments – Credit Losses, for the acquired loan portfolio.
            
    Excluding acquisition/post-acquisition related expenses, the CECL Day 2 provision and other nonrecurring items, adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the second quarter of 2022 were $30.4 million and $1.73, respectively. For the first quarter of 2022, adjusted net income (non-GAAP) was $24.4 million and adjusted diluted EPS (non-GAAP) was $1.54. For the second quarter of 2021, adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $22.5 million and $1.40, respectively.

     For the Quarter Ended
     June 30,
    		 March 31,
    		 June 30,
    $ in millions (except per share data)2022 2022 2021
    Net Income$15.2 $23.6 $22.3
    Diluted EPS$0.87 $1.49 $1.39
    Adjusted Net Income (non-GAAP)*$30.4 $24.4 $22.5
    Adjusted Diluted EPS (non-GAAP)*$1.73 $1.54 $1.40

    *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 another strong quarter of net income, driven by exceptional loan growth, expanding net interest margin and well managed expenses,” said Larry J. Helling, Chief Executive Officer. “Building on the momentum we saw in the first quarter, we generated robust lending activity again in the second quarter with annualized loan growth of 14.0% after excluding the impact of the acquired portfolio and PPP activity. Adjusting for the nonrecurring items, primarily related to the closing of the Guaranty Bank acquisition, we increased core earnings by $6.0 million on a linked-quarter basis, generating an adjusted ROAA of 1.66%”

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

    Net Interest Income of $59.4 Million
    NIM Expanded by 23 Basis Points from the Prior Quarter

    Net interest income for the second quarter of 2022 totaled $59.4 million, compared to $45.7 million for the first quarter of 2022 and $43.5 million for the second quarter of 2021. The increase in net interest income was due to an increase in average earning assets, primarily attributable to the Guaranty Bank transaction, increased organic loan growth on a linked-quarter basis, and strong NIM expansion.   Adjusted net interest income (non-GAAP) during the quarter was $61.1 million, an increase of $12.6 million, or 25.9%, from the prior quarter. Adjusted net interest income (non-GAAP) was $45.7 million for the second quarter of 2021. Acquisition-related net accretion totaled $1.7 million for the second quarter of 2022, up from $118 thousand in the first quarter of 2022 and $291 thousand for the second quarter of 2021.

    In the second quarter, NIM was 3.53% and tax-equivalent yield (“TEY”) basis (non-GAAP) NIM was 3.74%, compared to 3.30% and 3.50% in the prior quarter, respectively. Adjusted NIM (non-GAAP), which excludes acquisition-related net accretion, was 3.64%, up 14 basis points from the prior quarter. The increase in Adjusted NIM (non-GAAP) during the quarter was primarily due to the impact of multiple rate increases on our asset-sensitive balance sheet as well as the addition of Guaranty Bank.

     For the Quarter Ended
     June 30,
    		 March 31,
    		 June 30,
     2022
    		 2022
    		 2021
    NIM3.53% 3.30% 3.28%
    NIM (TEY)(non-GAAP) *3.74% 3.50% 3.46%
    Adjusted NIM (TEY)(non-GAAP) *3.64% 3.50% 3.44%
    Adjusted NIM ex. PPP (TEY)(non-GAAP)*3.63% 3.46% 3.32%
        
    * See GAAP to non-GAAP reconciliations
    		   

    “Excluding the impact of acquisition-related net accretion and PPP fees, we significantly expanded our adjusted NIM during the second quarter by 17 basis points” said Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer. “Our balance sheet is well positioned to continue to drive strong NIM expansion in this rapidly rising rate environment.”

    Annualized Loan and Lease Growth of 14.0%, Excluding the Guaranty Bank Acquisition and PPP Loans (non-GAAP)

    During the second quarter of 2022, the Company’s loans and leases increased $970.0 million to a total of $5.8 billion. Excluding the initial loan balances from the Guaranty Bank acquisition and PPP loans (non-GAAP), loan and lease growth during the quarter was $168.7 million, or 14.0% on an annualized basis.   Core deposits (excluding brokered deposits) increased by $973.2 million during the quarter, due to the Guaranty Bank acquisition.

    “Our continued robust loan growth in the second quarter was driven by strength in our traditional commercial lending, leasing and our Specialty Finance business,” added Helling. “This is a testament to the economic resiliency 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 reaffirming our targeted organic loan growth to between 10% and 12% for the full year.”

    Noninterest Income of $22.8 Million

    Noninterest income for the second quarter of 2022 totaled $22.8 million, compared to $15.6 million for the first quarter of 2022. The increase was primarily due to a $6.6 million increase in capital markets revenue from swap fees as well as the Guaranty Bank acquisition. Wealth management revenue was $3.5 million for the quarter, down 12.9% from the first quarter of 2022, primarily due to increased market volatility.

    “Capital markets revenue totaled $13.0 million for the quarter, which was within our guidance range,” added Gipple. “Given our solid pipeline and recognizing timing continues to be impacted by project delays caused by ongoing supply chain disruptions and inflationary pressures, we continue to expect 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 $54.2 Million, Including Acquisition/Post-Acquisition Related Expenses

    Noninterest expense for the second quarter of 2022 totaled $54.2 million, including acquisition/post-acquisition related expenses of $6.8 million, compared to $38.3 million for the first quarter of 2022 and $35.7 million for the second quarter of 2021. The linked-quarter increase was primarily due to the inclusion of expenses from Guaranty Bank and expenses related to the acquisition. Excluding these acquisition/post-acquisition related costs, noninterest expense for the second quarter was $47.5 million.

    Asset Quality Reflects Addition of Guaranty Bank

    Nonperforming assets (“NPAs”) totaled $24.0 million at the end of the second quarter, an increase of $21.3 million over the first quarter of 2022, primarily the result of the Guaranty Bank acquisition and two legacy lending relationships. The ratio of NPAs to total assets was 0.33% on June 30, 2022, compared to 0.04% on March 31, 2022, and 0.17% on June 30, 2021. In addition, the Company’s criticized loans and classified loans to total loans and leases at June 30, 2022 were 2.37% and 1.43%, respectively, compared to 2.45% and 1.13% as of March 31, 2022.

    The Company recorded an $11.2 million provision for credit losses in the second quarter of 2022, due solely to the CECL Day 2 provision of $12.4 million (pre-tax) as a result of the Guaranty Bank acquisition. As of June 30, 2022, the ACL on total loans/leases was 1.59%, compared to 1.55% as of March 30, 2022.

    Continued Strong Capital Levels

    As of June 30, 2022, the Company’s total risk-based capital ratio was 13.02%, the common equity tier 1 ratio was 9.17% and the tangible common equity to tangible assets ratio (non-GAAP) was 8.11%. By comparison, these respective ratios were 14.50%, 10.61% and 9.60% as of March 31, 2022. Total risk-based capital and the common equity tier 1 were both impacted by expected initial dilution from the Guaranty Bank acquisition. The Company’s accumulated other comprehensive income (“AOCI”) declined $24.3 million during the second quarter due to a decrease in the value of its available for sale securities portfolio and certain derivatives resulting from ongoing increases in interest rates during the quarter. While AOCI reduced the Company’s tangible common equity (non-GAAP), solid earnings partially offset this impact, which led to a decline of only 8.4% in tangible book value (non-GAAP).  

    During the second quarter, the Company purchased and retired 602,500 shares of its common stock at an average price of $54.80 per share as the Company finished repurchases under the original 2020 authorized plan and began repurchases under the May 2022 authorized plan. Under the 2020 share repurchase program, the Company repurchased 794,000 shares in total at an average price of $50.60 per share. The 2022 share repurchase program, announced during the second quarter of 2022, authorized an approximate 1,500,000 additional shares to be repurchased. The Company repurchased 280,000 shares during the quarter and has approximately 1,220,000 shares remaining under its 2022 share 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, July 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 August 3, 2022. The replay access information is 877-344-7529 (international 412-317-0088); access code 7416915. 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 June 30, 2022, the Company had approximately $7.4 billion in assets, $5.8 billion in loans and $5.8 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                                
    President                                
    Chief Operating Officer                        
    Chief Financial Officer                        
    (309) 743-7745                                
    tgipple@qcrh.com

     
    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
     As of
     June 30,March 31,December 31,September 30,June 30,
     20222022202120212021
               
     (dollars in thousands)
          
    CONDENSED BALANCE SHEET     
          
    Cash and due from banks$92,379$50,540$37,490$57,310$55,598
    Federal funds sold and interest-bearing deposits 56,532 66,390 87,662 70,826 88,780
    Securities, net of allowance for credit losses 879,918 823,311 810,215 828,719 810,445
    Net loans/leases 5,705,478 4,753,082 4,601,411 4,519,060 4,338,811
    Intangibles 18,333 8,856 9,349 9,857 10,365
    Goodwill 137,607 74,066 74,066 74,066 74,066
    Derivatives 97,455 107,326 222,220 198,393 193,395
    Other assets 405,239 292,248 253,719 256,277 255,952
    Total assets$7,392,941$6,175,819$6,096,132$6,014,508$5,827,412
          
    Total deposits$5,820,657$4,839,689$4,922,772$4,871,828$4,688,935
    Total borrowings 583,166 443,270 170,805 183,514 198,908
    Derivatives 113,305 116,193 225,135 201,450 196,092
    Other liabilities 132,675 108,743 100,410 107,902 113,001
    Total stockholders' equity 743,138 667,924 677,010 649,814 630,476
    Total liabilities and stockholders' equity$7,392,941$6,175,819$6,096,132$6,014,508$5,827,412
          
    ANALYSIS OF LOAN PORTFOLIO     
    Loan/lease mix:     
    Commercial and industrial - revolving$322,258$263,441$248,483$175,155$182,882
    Commercial and industrial - other 1,403,689 1,374,221 1,346,602 1,465,580 1,505,384
    Total commercial and industrial 1,725,947 1,637,662 1,595,085 1,640,735 1,688,266
    Commercial real estate, owner occupied 628,565 439,257 421,701 434,014 427,734
    Commercial real estate, non-owner occupied 889,530 679,898 646,500 644,850 618,879
    Construction and land development 1,080,372 863,116 918,571 852,418 708,289
    Multi-family 860,742 711,682 600,412 529,727 466,804
    Direct financing leases 40,050 43,330 45,191 50,237 56,153
    1-4 family real estate 473,141 379,613 377,361 376,067 382,142
    Consumer 99,556 73,310 75,311 71,682 69,438
    Total loans/leases$5,797,903$4,827,868$4,680,132$4,599,730$4,417,705
    Less allowance for credit losses 92,425 74,786 78,721 80,670 78,894
    Net loans/leases$5,705,478$4,753,082$4,601,411$4,519,060$4,338,811
          
    ANALYSIS OF SECURITIES PORTFOLIO     
    Securities mix:     
    U.S. government sponsored agency securities$20,448$21,380$23,328$23,689$14,670
    Municipal securities 710,638 667,245 639,799 649,486 641,603
    Residential mortgage-backed and related securities 81,247 86,381 94,323 100,744 106,139
    Asset backed securities 19,956 23,233 27,124 30,607 31,778
    Other securities 47,827 25,270 25,839 24,367 16,429
    Total securities$880,116$823,509$810,413$828,893$810,619
    Less allowance for credit losses 198 198 198 174 174
    Net securities$879,918$823,311$810,215$828,719$810,445
          
    ANALYSIS OF DEPOSITS     
    Deposit mix:     
    Noninterest-bearing demand deposits$1,514,005$1,275,493$1,268,788$1,342,273$1,258,885
    Interest-bearing demand deposits 3,758,566 3,181,685 3,232,633 3,086,711 2,976,696
    Time deposits 540,074 382,268 421,348 441,743 452,171
    Brokered deposits 8,012 243 3 1,101 1,183
    Total deposits$5,820,657$4,839,689$4,922,772$4,871,828$4,688,935
          
    ANALYSIS OF BORROWINGS     
    Borrowings mix:     
    Overnight FHLB advances (1)$400,000$290,000$15,000$30,000$40,000
    Other short-term borrowings 1,070 1,190 3,800 1,600 7,070
    Subordinated notes 133,562 113,890 113,850 113,811 113,771
    Junior subordinated debentures 48,534 38,190 38,155 38,103 38,067
    Total borrowings$583,166$443,270$170,805$183,514$198,908
          
    (1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 1.45%. 
          


    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
           
      For the Quarter Ended
      June 30,March 31,December 31,September 30,June 30,
      2022 2022  2021  2021  2021 
           
      (dollars in thousands, except per share data)
           
    INCOME STATEMENT      
    Interest income $68,205$51,062 $52,020 $51,667 $48,903 
    Interest expense  8,805 5,329  5,507  5,438  5,387 
    Net interest income  59,400 45,733  46,513  46,229  43,516 
    Provision for credit losses (1)  11,200 (2,916) (3,227) -  - 
    Net interest income after provision for loan/lease losses $48,200$48,649 $49,740 $46,229 $43,516 
           
           
    Trust department fees $2,497$2,963 $2,843 $2,714 $2,848 
    Investment advisory and management fees  983 1,036  1,047  1,054  1,039 
    Deposit service fees  2,223 1,555  1,644  1,588  1,492 
    Gain on sales of residential real estate loans  809 493  922  954  1,184 
    Gain on sales of government guaranteed portions of loans  - 19  227  -  - 
    Swap fee income/capital markets revenue  13,004 6,422  12,982  24,885  9,568 
    Securities gains (losses), net  - -  -  -  (88)
    Earnings on bank-owned life insurance  350 346  470  446  451 
    Debit card fees  1,499 1,007  1,072  1,085  1,084 
    Correspondent banking fees  244 277  266  265  269 
    Other  1,173 1,515  1,512  1,661  1,449 
    Total noninterest income $22,782$15,633 $22,985 $34,652 $19,296 
           
           
    Salaries and employee benefits $29,972$23,627 $24,809 $28,207 $23,044 
    Occupancy and equipment expense  5,978 3,937  3,723  4,122  3,965 
    Professional and data processing fees  4,365 3,671  3,866  3,568  3,702 
    Acquisition costs  1,973 1,851  624  -  - 
    Post-acquisition compensation, transition and integration costs  4,796 -  -  -  - 
    Disposition costs  - -  5  -  - 
    FDIC insurance, other insurance and regulatory fees  1,394 1,310  1,316  1,108  986 
    Loan/lease expense  761 267  606  308  457 
    Net cost of (income from) and gains/losses on operations of other real estate  59 (1) -  (1,346) (113)
    Advertising and marketing  1,198 761  1,679  1,095  853 
    Bank service charges  610 541  553  525  572 
    Correspondent banking expense  213 199  200  201  198 
    Intangibles amortization  787 493  508  508  508 
    Other  2,142 1,669  1,523  3,091  1,503 
    Total noninterest expense $54,248$38,325 $39,412 $41,387 $35,675 
           
    Net income before income taxes $16,734$25,957 $33,313 $39,494 $27,137 
    Federal and state income tax expense  1,492 2,333  6,304  7,929  4,788 
    Net income $15,242$23,624 $27,009 $31,565 $22,349 
           
    Basic EPS $0.88$1.51 $1.73 $2.02 $1.41 
    Diluted EPS $0.87$1.49 $1.71 $1.99 $1.39 
           
           
    Weighted average common shares outstanding  17,345,324 15,625,112  15,582,276  15,635,123  15,813,932 
    Weighted average common and common equivalent shares outstanding  17,549,107 15,852,256  15,838,246  15,869,798  16,045,239 
           
    (1) Provision for credit losses for the quarter ended June 30, 2022 included $11.0 million related to the acquired Guaranty Bank non-PCD loans and $1.4 million related to acquired Guaranty Bank OBS exposures.
           


    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
         
      For Six Months Ended
      June 30, June 30,
      2022 2021
         
      (dollars in thousands, except per share data)
         
    INCOME STATEMENT    
    Interest income $119,267 $96,468 
    Interest expense  14,134  10,977 
    Net interest income  105,133  85,491 
    Provision for credit losses (1)  8,284  6,713 
    Net interest income after provision for loan/lease losses $96,849 $78,778 
         
         
    Trust department fees $5,460 $5,649 
    Investment advisory and management fees  2,019  1,979 
    Deposit service fees  3,778  2,900 
    Gain on sales of residential real estate loans  1,302  2,521 
    Gain on sales of government guaranteed portions of loans  19  - 
    Swap fee income/capital markets revenue  19,426  23,125 
    Securities gains (losses), net  -  (88)
    Earnings on bank-owned life insurance  696  922 
    Debit card fees  2,506  2,059 
    Correspondent banking fees  521  583 
    Other  2,688  3,135 
    Total noninterest income $38,415 $42,785 
         
         
    Salaries and employee benefits $53,599 $47,891 
    Occupancy and equipment expense  9,915  8,073 
    Professional and data processing fees  8,036  7,145 
    Acquisition costs  3,824  - 
    Post-acquisition compensation, transition and integration costs  4,796  - 
    Disposition costs  -  8 
    FDIC insurance, other insurance and regulatory fees  2,704  2,051 
    Loan/lease expense  1,028  757 
    Net cost of (income from) and gains/losses on operations of other real estate  58  (74)
    Advertising and marketing  1,959  1,480 
    Bank service charges  1,151  1,095 
    Correspondent banking expense  412  398 
    Intangibles amortization  1,280  1,016 
    Other  3,811  3,063 
    Total noninterest expense $92,573 $72,903 
         
    Net income before income taxes $42,691 $48,660 
    Federal and state income tax expense  3,825  8,329 
    Net income $38,866 $40,331 
         
    Basic EPS $2.36 $2.55 
    Diluted EPS $2.33 $2.52 
         
         
    Weighted average common shares outstanding  16,485,218  15,808,788 
    Weighted average common and common equivalent shares outstanding  16,700,682  16,035,394 
         
    (1) Provision for credit losses for the six months ended June 30, 2022 included $11.0 million related to the acquired Guaranty Bank non-PCD loans and $1.4 million related to acquired Guaranty Bank OBS exposures.
       


    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
             
     As of and for the Quarter Ended For the Six Months Ended
     June 30,March 31,December 31,September 30,June 30, June 30,June 30,
      2022  2022  2021  2021  2021   2022  2021 
             
     (dollars in thousands, except per share data)
             
    COMMON SHARE DATA        
    Common shares outstanding 17,064,347  15,579,605  15,613,460  15,590,428  15,763,522    
    Book value per common share (1)$43.55 $42.87 $43.36 $41.68 $40.00    
    Tangible book value per common share (Non-GAAP) (2)$34.41 $37.55 $38.02 $36.30 $34.64    
    Closing stock price$53.99 $56.59 $56.00 $51.44 $48.09    
    Market capitalization$921,304 $881,650 $874,354 $801,972 $758,068    
    Market price / book value 123.97% 132.00% 129.15% 123.42% 120.24%   
    Market price / tangible book value 156.90% 150.71% 147.30% 141.72% 138.83%   
    Earnings per common share (basic) LTM (3)$6.14 $6.68 $6.30 $5.73 $4.81    
    Price earnings ratio LTM (3)8.79 x8.47 x8.88 x8.98 x10.00 x   
    TCE / TA (Non-GAAP) (4) 8.11% 9.60% 9.87% 9.54% 9.51%   
             
             
    CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY    
    Beginning balance$667,924 $677,010 $649,814 $630,476 $608,719    
    Net income 15,242  23,624  27,009  31,565  22,349    
    Other comprehensive income (loss), net of tax (24,286) (27,340) 295  (2,546) 4,179    
    Common stock cash dividends declared (1,059) (938) (935) (946) (951)   
    Issuance of 2,071,291 shares of                  
    common stock as a result of the acquisition
    of Guaranty Federal Bancshares    		 117,214  -  -  -  -    
    Repurchase and cancellation of shares of common                   
    stock as a result of a share repurchase program (33,016) (4,416) -  (9,367) (4,800)   
    Other (5) 1,119  (16) 827  632  980    
    Ending balance$743,138 $667,924 $677,010 $649,814 $630,476    
             
             
    REGULATORY CAPITAL RATIOS (6):        
    Total risk-based capital ratio 13.02% 14.50% 14.77% 14.64% 14.72%   
    Tier 1 risk-based capital ratio 9.86% 11.27% 11.46% 11.26% 11.26%   
    Tier 1 leverage capital ratio 9.61% 10.78% 10.46% 10.28% 10.29%   
    Common equity tier 1 ratio 9.17% 10.61% 10.76% 10.55% 10.52%   
             
             
    KEY PERFORMANCE RATIOS AND OTHER METRICS        
    Return on average assets (annualized) 0.83% 1.55% 1.76% 2.11% 1.56%  1.16% 1.41%
    Return on average total equity (annualized) 7.74% 13.81% 16.23% 19.30% 14.33%  10.55% 13.14%
    Net interest margin 3.53% 3.30% 3.29% 3.36% 3.28%  3.43% 3.27%
    Net interest margin (TEY) (Non-GAAP)(7) 3.74% 3.50% 3.50% 3.56% 3.46%  3.63% 3.45%
    Efficiency ratio (Non-GAAP) (8) 66.01% 62.45% 56.71% 51.17% 56.80%  64.49% 56.83%
    Gross loans and leases / total assets 78.42% 78.17% 76.77% 76.48% 75.81%  78.42% 76.10%
    Gross loans and leases / total deposits 99.61% 99.76% 95.07% 94.41% 94.22%  99.61% 94.22%
    Effective tax rate 8.92% 8.99% 18.92% 20.08% 17.64%  8.96% 17.12%
    Full-time equivalent employees (9) 968  749  726  724  725   968  725 
             
             
    AVERAGE BALANCES        
    Assets$7,324,470 $6,115,127 $6,121,446 $5,982,583 $5,761,314  $6,723,137 $5,704,151 
    Loans/leases 5,711,471  4,727,478  4,608,111  4,529,136  4,412,322   5,222,193  4,342,440 
    Deposits 5,867,444  4,903,354  4,983,869  4,779,876  4,709,732   5,388,062  4,669,533 
    Total stockholders' equity 788,204  684,126  665,698  654,186  624,000   736,452  614,061 
             
             
             
    (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.
    (9) Increase at June 30, 2022 due to the acquisition of Guaranty Bank.
             


    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
                 
    ANALYSIS OF NET INTEREST INCOME AND MARGIN
    		         
                 
      For the Quarter Ended
      June 30, 2022 March 31, 2022 June 30, 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 $5,896$120.83% $4,564$20.15% $1,817$10.06%
    Interest-bearing deposits at financial institutions 67,254 1691.01%  69,328 350.20%  88,396 350.16%
    Securities (1)  920,308 9,0023.91%  802,260 7,6823.83%  798,732 7,2943.66%
    Restricted investment securities 37,166 4855.16%  22,183 2815.06%  19,614 2384.79%
    Loans (1)  5,711,471 61,9324.35%  4,727,478 45,9953.95%  4,412,322 43,7763.98%
    Total earning assets (1)$6,742,095$71,6004.26% $5,625,813$53,9953.88% $5,320,881$51,3443.87%
                 
    Interest-bearing deposits$3,791,595$4,4780.47% $3,228,083$2,3380.29% $2,978,382$2,0500.28%
    Time deposits  529,675 1,0470.79%  398,897 7990.81%  440,599 1,1841.08%
    Short-term borrowings 1,404 30.78%  1,951 -0.05%  10,883 10.05%
    Federal Home Loan Bank advances 286,484 7801.08%  85,778 820.38%  21,802 150.28%
    Subordinated debentures 133,529 1,8165.44%  113,868 1,5545.46%  115,339 1,5705.45%
    Junior subordinated debentures 46,536 6805.78%  38,171 5565.83%  38,044 5645.86%
    Total interest-bearing liabilities$4,789,223$8,8040.74% $3,866,748$5,3290.56% $3,605,049$5,3840.60%
                 
    Net interest income (1) $62,796   $48,666   $45,960 
    Net interest margin (2)  3.53%   3.30%   3.28%
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.74%   3.50%   3.46%
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.64%   3.50%   3.44%
    Adjusted net interest margin, excluding PPP income (TEY) (Non-GAAP) (1) (2) (3) 3.63%   3.46%   3.32%
                 
                 
      For the Six Months Ended    
      June 30, 2022 June 30, 2021  
      Average BalanceInterest Earned or PaidAverage Yield or Cost Average BalanceInterest Earned or PaidAverage Yield or Cost    
                 
      (dollars in thousands)    
                 
    Fed funds sold $5,234$140.53% $1,830$10.05%    
    Interest-bearing deposits at financial institutions 68,285 2040.60%  102,343 710.14%    
    Securities (1)  861,610 16,6833.87%  804,364 14,3443.57%    
    Restricted investment securities 29,716 7665.13%  18,843 4564.81%    
    Loans (1)  5,222,193 107,9274.17%  4,342,440 86,2994.01%    
    Total earning assets (1)$6,187,038$125,5944.09% $5,269,820$101,1713.87%    
                 
    Interest-bearing deposits$3,511,396$6,8160.39% $2,979,835$4,0360.27%    
    Time deposits  464,647 1,8460.80%  444,297 2,6251.19%    
    Short-term borrowings 1,676 30.36%  9,021 30.06%    
    Federal Home Loan Bank advances 186,685 8630.92%  17,464 250.28%    
    Subordinated debentures 123,753 3,3705.45%  117,014 3,1645.41%    
    Junior subordinated debentures 42,376 1,2365.80%  38,026 1,1255.87%    
    Total interest-bearing liabilities$4,330,533$14,1340.66% $3,605,657$10,9780.61%    
                 
    Net interest income (1) $111,460   $90,193     
    Net interest margin (2)  3.43%   3.27%    
    Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.63%   3.45%    
    Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.57%   3.42%    
    Adjusted net interest margin, excluding PPP income (TEY) (Non-GAAP) (1) (2) (3) 3.55%   3.27%    
                 
                 
    (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
     June 30,March 31,December 31,September 30,June 30,
      2022  2022  2021  2021  2021 
          
     (dollars in thousands, except per share data)
          
    ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES     
    Beginning balance$74,786 $78,721 $80,670 $78,894 $81,831 
    Initial ACL recorded for acquired PCD loans 5,902  -  -  -  - 
    Credit loss expense (1) 12,141  (3,849) (2,045) 1,895  (141)
    Loans/leases charged off (620) (456) (375) (287) (3,163)
    Recoveries on loans/leases previously charged off 216  370  471  168  367 
    Ending balance$92,425 $74,786 $78,721 $80,670 $78,894 
          
          
    NONPERFORMING ASSETS     
    Nonaccrual loans/leases (2)$23,574 $2,744 $2,759 $6,818 $8,230 
    Accruing loans/leases past due 90 days or more 268  4  1  14  57 
    Total nonperforming loans/leases 23,842  2,748  2,760  6,832  8,287 
    Other real estate owned 205  -  -  -  1,820 
    Other repossessed assets -  -  -  -  - 
    Total nonperforming assets$24,047 $2,748 $2,760 $6,832 $10,107 
          
          
    ASSET QUALITY RATIOS     
    Nonperforming assets / total assets 0.33% 0.04% 0.05% 0.11% 0.17%
    ACL for loans and leases / total loans/leases 1.59% 1.55% 1.68% 1.75% 1.79%
    ACL for loans and leases / nonperforming loans/leases 387.66% 2721.47% 2852.21% 1180.77% 952.02%
    Net charge-offs as a % of average loans/leases 0.01% 0.00% 0.00% 0.00% 0.06%
          
          
          
    INTERNALLY ASSIGNED RISK RATING (3)     
    Special mention (rating 6)$54,558 $63,622 $62,510 $58,634 $51,613 
    Substandard (rating 7) 83,048  54,491  53,159  59,402  79,719 
    Doubtful (rating 8) -  -  -  -  - 
     $137,606 $118,113 $115,669 $118,036 $131,332 
          
    Criticized loans (4)$137,606 $118,113 $115,669 $118,036 $131,332 
    Classified loans (5) 83,048  54,491  53,159  59,402  79,719 
          
    Criticized loans as a % of total loans/leases 2.37% 2.45% 2.47% 2.57% 2.97%
    Classified loans as a % of total loans/leases 1.43% 1.13% 1.14% 1.29% 1.80%
          
    (1) Credit loss expense on loans/leases for the quarter ended June 30, 2022 included $11.0 million related to the acquired Guaranty Bank non-PCD loans.
    (2) Nonaccrual loans for the quarter ended June 30, 2022 included $7.3 million related to the acquired Guaranty Bank loan portfolio.
    (3) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass (Rating 2) for the government guaranteed portion.
    (4) Criticized loans are defined as C&I and CRE loans with internally assigned risk ratings of 6, 7, or 8, regardless of performance.
    (5) 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 EndedFor the Six Months Ended
       June 30, March 31, June 30, June 30, June 30,
     SELECT FINANCIAL DATA - SUBSIDIARIES  2022   2022   2021   2022   2021 
                          
       (dollars in thousands)
                
     TOTAL ASSETS          
     Quad City Bank and Trust (1) $2,122,852  $2,195,894  $2,059,634     
     m2 Equipment Finance, LLC  289,451   281,666   255,338     
     Cedar Rapids Bank and Trust  1,985,199   1,947,737   1,913,761     
     Community State Bank - Ankeny  1,221,406   1,184,708   1,079,929     
     Guaranty Bank (7)  2,037,364   956,345   850,067     
                
     TOTAL DEPOSITS          
     Quad City Bank and Trust (1) $1,787,564  $1,930,935  $1,810,772     
     Cedar Rapids Bank and Trust  1,495,665   1,397,976   1,395,721     
     Community State Bank - Ankeny  1,006,836   1,013,928   938,428     
     Guaranty Bank (7)  1,539,978   555,559   608,676     
                
     TOTAL LOANS & LEASES          
     Quad City Bank and Trust (1) $1,737,812  $1,692,218  $1,577,681     
     m2 Equipment Finance, LLC  293,435   285,871   258,520     
     Cedar Rapids Bank and Trust  1,536,224   1,478,514   1,360,202     
     Community State Bank - Ankeny  931,031   912,996   786,208     
     Guaranty Bank (7)  1,592,836   744,140   693,614     
                
     TOTAL LOANS & LEASES / TOTAL DEPOSITS          
     Quad City Bank and Trust (1)  97%  88%  87%    
     Cedar Rapids Bank and Trust  103%  106%  97%    
     Community State Bank - Ankeny  92%  90%  84%    
     Guaranty Bank  103%  134%  114%    
                
                
     TOTAL LOANS & LEASES / TOTAL ASSETS          
     Quad City Bank and Trust (1)  82%  77%  77%    
     Cedar Rapids Bank and Trust  77%  76%  71%    
     Community State Bank - Ankeny  76%  77%  73%    
     Guaranty Bank  78%  78%  82%    
                
     ACL ON LOANS/LEASES AS A PERCENTAGE OF LOANS/LEASES          
     Quad City Bank and Trust (1)  1.68%  1.69%  1.91%    
     m2 Equipment Finance, LLC  3.31%  3.31%  3.61%    
     Cedar Rapids Bank and Trust  1.58%  1.61%  1.92%    
     Community State Bank - Ankeny  1.57%  1.55%  1.69%    
     Guaranty Bank  1.53%  1.11%  1.35%    
                
     RETURN ON AVERAGE ASSETS          
     Quad City Bank and Trust (1)  1.56%  1.86%  1.64%  1.71%  1.50%
     Cedar Rapids Bank and Trust  2.72%  2.25%  2.39%  2.48%  2.42%
     Community State Bank - Ankeny  1.12%  1.42%  1.16%  1.27%  0.99%
     Guaranty Bank (8) (9)  0.20%  1.40%  1.77%  0.56%  1.47%
                
     NET INTEREST MARGIN PERCENTAGE (2)          
     Quad City Bank and Trust (1)  3.74%  3.50%  3.30%  3.62%  3.25%
     Cedar Rapids Bank and Trust (3)  3.66%  3.60%  3.60%  3.63%  3.58%
     Community State Bank - Ankeny (4)  3.67%  3.62%  3.66%  3.65%  3.68%
     Guaranty Bank (5)  4.20%  3.38%  3.54%  3.94%  3.54%
                
     ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET            
     INTEREST MARGIN, NET          
     Cedar Rapids Bank and Trust $4  $51  $92  $55  $105 
     Community State Bank - Ankeny  28   33   68  $61   385 
     Guaranty Bank  1,698   69   168  $1,767   379 
     QCR Holdings, Inc. (6)  (35)  (35)  (37) $(70)  (74)
                
    (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 3.62% for the quarter ended June 30, 2022, 3.54% for the quarter ended March 31, 2022 and 3.67% for thequarter ended June 30, 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 3.66% for the quarter ended June 30, 2022, 3.62% for the quarter ended March 31, 2022 and 3.63% for the quarter ended June 30, 2021.
    (5)Guaranty Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 3.82% for the quarter ended June 30, 2022, 3.41% for the quarter ended March 31, 2022 and 3.50% for the quarter ended June 30, 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.
    (7)Increase due to the acquisition of Guaranty Bank on April 1, 2022, merging into Springfield First Community Bank with the combined bank operating under the Guaranty Bank name.
    (8)Decrease due to CECL Day 2 provision for credit losses of $12.4 million related to the acquisition of Guaranty Bank during the quarter ended June 30, 2022.
    (9)Adjusted ROAA excluding non-core adjustments for the Guaranty Bank acquisition (non-GAAP) would have been 2.12% for the quarter ended June 30, 2022 and 1.89% for the six months ended June 30, 2022.
                


    QCR Holdings, Inc.
    Consolidated Financial Highlights
    (Unaudited)
               
      As of
      June 30, March 31, December 31, September 30, June 30,
    GAAP TO NON-GAAP RECONCILIATIONS  2022   2022   2021   2021   2021 
                         
      (dollars in thousands, except per share data)
    TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)          
               
    Stockholders' equity (GAAP) $743,138  $667,924  $677,010  $649,814  $630,476 
    Less: Intangible assets  155,940   82,922   83,415   83,923   84,431 
     Tangible common equity (non-GAAP) $587,198  $585,002  $593,595  $565,891  $546,045 
               
    Total assets (GAAP) $7,392,941  $6,175,819  $6,096,132  $6,014,508  $5,827,412 
    Less: Intangible assets  155,940   82,922   83,415   83,923   84,431 
     Tangible assets (non-GAAP) $7,237,001  $6,092,897  $6,012,717  $5,930,585  $5,742,981 
               
    Tangible common equity to tangible assets ratio (non-GAAP) 8.11%  9.60%  9.87%  9.54%  9.51%
               
    (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 For the Six Months Ended
      June 30, March 31, December 31, September 30, June 30, June 30, June 30,
    ADJUSTED NET INCOME (1)  2022   2022   2021   2021   2021   2022   2021 
                                 
                                 
      (dollars in thousands, except per share data)
                   
    Net income (GAAP) $15,242  $23,624  $27,009  $31,565  $22,349  $38,866  $40,331 
                   
    Less non-core items (post-tax) (2):              
    Income:              
       Securities gains (losses), net  -   -   -   -   (69) $-  $(69)
       Mark to market gains (losses) on derivatives, net  342   715   77   (13)  (58)  1,057  $71 
       Gain on sale of loan  -   -   -   28   -   -  $- 
    Total non-core income (non-GAAP) $342  $715  $77  $15  $(127) $1,057  $2 
                   
    Expense:              
       Acquisition costs (2)  1,932   1,462   493   -   -   3,394   - 
       Post-acquisition compensation, transition and integration costs  3,789   -   -   -   -   3,789   169 
       Separation agreement  -   -   -   -   -   -   734 
       CECL Day 2 provision for credit losses on acquired non-PCD loans (3)  8,651   -   -   -   -   8,651   - 
       CECL Day 2 provision for credit losses provision on acquired OBS exposure (3) 1,140   -   -   -   -   1,140   - 
       Loss on sale of subsidiary  -   -   -   -   -   -   110 
    Total non-core expense (non-GAAP) $15,512  $1,462  $496  $-  $-  $16,974  $1,020 
    Adjusted net income (non-GAAP) (1) $30,412  $24,371  $27,428  $31,550  $22,476  $54,783  $41,349 
                   
    ADJUSTED EARNINGS PER COMMON SHARE (1)              
                   
    Adjusted net income (non-GAAP) (from above) $30,412  $24,371  $27,428  $31,550  $22,476  $54,783  $41,349 
                   
    Weighted average common shares outstanding  17,345,324   15,625,112   15,582,276   15,635,123   15,813,932   16,485,218   15,808,788 
    Weighted average common and common equivalent shares outstanding  17,549,107   15,852,256   15,838,246   15,869,798   16,045,239   16,700,682   16,035,394 
                   
    Adjusted earnings per common share (non-GAAP):              
    Basic $1.75  $1.56  $1.76  $2.02  $1.42  $3.32  $2.62 
    Diluted $1.73  $1.54  $1.73  $1.99  $1.40  $3.28  $2.58 
                   
    ADJUSTED RETURN ON AVERAGE ASSETS (1)              
                   
    Adjusted net income (non-GAAP) (from above) $30,412  $24,371  $27,428  $31,550  $22,476  $54,783  $41,349 
                   
    Average Assets $7,324,470  $6,115,127  $6,121,446  $5,982,583  $5,761,314  $6,723,137  $5,704,151 
                   
    Adjusted return on average assets (annualized) (non-GAAP)  1.66%  1.59%  1.79%  2.11%  1.56%  1.63%  1.45%
                   
    NET INTEREST MARGIN (TEY) (5)              
                   
    Net interest income (GAAP) $59,400  $45,733  $46,513  $46,229  $43,516  $105,133  $85,491 
    Plus: Tax equivalent adjustment (4)  3,396   2,933   2,800   2,708   2,444   6,327   4,702 
    Net interest income - tax equivalent (Non-GAAP) $62,796  $48,666  $49,313  $48,937  $45,960  $111,460  $90,193 
    Less: Acquisition accounting net accretion  1,695   118   88   456   291   1,813   795 
    Adjusted net interest income $61,101  $48,548  $49,225  $48,481  $45,669  $109,647  $89,398 
    Less: PPP income  125   530   1,365   1,910   1,658   655   3,921 
    Adjusted net interest income, excluding PPP income $60,976  $48,018  $47,860  $46,571  $44,011  $108,992  $85,477 
                   
    Average earning assets $6,742,095  $5,625,813  $5,602,222  $5,451,571  $5,320,881  $6,187,038  $5,269,820 
                   
    Net interest margin (GAAP)  3.53%  3.30%  3.29%  3.36%  3.28%  3.43%  3.27%
    Net interest margin (TEY) (Non-GAAP)  3.74%  3.50%  3.50%  3.56%  3.46%  3.63%  3.45%
    Adjusted net interest margin (TEY) (Non-GAAP)  3.64%  3.50%  3.49%  3.53%  3.44%  3.57%  3.42%
    Adjusted net interest margin, excluding PPP income (TEY) (Non-GAAP)  3.63%  3.46%  3.39%  3.39%  3.32%  3.55%  3.27%
                   
    EFFICIENCY RATIO (6)              
                   
    Noninterest expense (GAAP) $54,248  $38,325  $39,412  $41,387  $35,675  $92,573  $72,903 
                   
    Net interest income (GAAP) $59,400  $45,733  $46,513  $46,229  $43,516  $105,133  $85,491 
    Noninterest income (GAAP)  22,782   15,633   22,985   34,652   19,296   38,415   42,785 
    Total income $82,182  $61,366  $69,498  $80,881  $62,812  $143,548  $128,276 
                   
    Efficiency ratio (noninterest expense/total income) (Non-GAAP)  66.01%  62.45%  56.71%  51.17%  56.80%  64.49%  56.83%
                   
    LOAN GROWTH ANNUALIZED, EXCLUDING ACQUIRED AND PPP LOANS              
    Total loans and leases $5,797,903  $4,827,868  $4,680,132  $4,599,730  $4,417,705  $5,797,903  $4,417,705 
    Less: Acquired loans (7)  807,599   -   -   -   -   807,599   - 
    Less: PPP loans  79   6,340   28,181   83,575   147,506   79   147,506 
    Total loans and leases, excluding acquired and PPP loans $4,990,225  $4,821,528  $4,651,951  $4,516,155  $4,270,199  $4,990,225  $4,270,199 
                   
    Loan growth annualized, excluding acquired and PPP loans  14.00%  14.58%  12.03%  23.04%  14.87%  14.54%  12.90%
                   
                   
    (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-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, this non-GAAP measure is reconciled to net income, which is the most directly comparable GAAP financial measure.
    (2) Non-core or nonrecurring items (post-tax) are calculated using an estimated effective tax rate of 21% with the exception of acquisition costs which have an estimated effective tax rate of 11.26%. 
    (3) The CECL Day 2 provision for credit losses on acquired non-PCD loans and OBS exposures resulted from the Guaranty Bank acquisition on April 1, 2022.
    (4) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective tax rate.
    (5) Net interest margin (TEY) is a non-GAAP financial measure. The Company's management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it's difficult to provide a more realistic run-rate for future periods.
    (6) Efficiency ratio is a non-GAAP measure. The Company's management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures.
    (7) Loan balances acquired from the Guaranty Bank acquisition on April 1, 2022 are excluded.
                   

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