Advertisement
Australia markets closed
  • ALL ORDS

    7,974.80
    -27.70 (-0.35%)
     
  • ASX 200

    7,724.30
    -25.40 (-0.33%)
     
  • AUD/USD

    0.6618
    -0.0020 (-0.30%)
     
  • OIL

    78.49
    -0.13 (-0.17%)
     
  • GOLD

    2,348.40
    +30.40 (+1.31%)
     
  • Bitcoin AUD

    100,199.39
    +219.01 (+0.22%)
     
  • CMC Crypto 200

    1,374.73
    -43.15 (-3.04%)
     
  • AUD/EUR

    0.6178
    +0.0005 (+0.09%)
     
  • AUD/NZD

    1.0765
    +0.0012 (+0.12%)
     
  • NZX 50

    11,864.89
    -7.75 (-0.07%)
     
  • NASDAQ

    19,659.80
    +82.88 (+0.42%)
     
  • FTSE

    8,146.86
    -16.81 (-0.21%)
     
  • Dow Jones

    38,589.16
    -57.94 (-0.15%)
     
  • DAX

    18,002.02
    -263.66 (-1.44%)
     
  • Hang Seng

    17,941.78
    -170.85 (-0.94%)
     
  • NIKKEI 225

    38,814.56
    +94.09 (+0.24%)
     

QCR Holdings, Inc. Announces Net Income of $26.7 Million for the First Quarter of 2024

QCR Holdings, Inc.
QCR Holdings, Inc.

First Quarter 2024 Highlights

  • Net income of $26.7 million, or $1.58 per diluted share

  • Capital Markets Revenue of $16.5 million

  • Annualized core deposit growth, excluding brokered deposits, of 20.3%

  • Increase in tangible book value (non-GAAP) per share of $1.12, or 10.2% annualized

  • TCE/TA ratio (non-GAAP) improved by 19 basis points to 8.94%

MOLINE, Ill., April 23, 2024 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $26.7 million and diluted earnings per share (“EPS”) of $1.58 for the first quarter of 2024, compared to net income of $32.9 million and diluted EPS of $1.95 for the fourth quarter of 2023.

ADVERTISEMENT

Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the first quarter of 2024 were $26.9 million and $1.59, respectively. For the fourth quarter of 2023, adjusted net income (non-GAAP) was $33.3 million and adjusted diluted EPS (non-GAAP) was $1.97. For the first quarter of 2023, net income and diluted EPS were $27.2 million and $1.60, respectively, and adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $28.0 million and $1.65, respectively.

 

For the Quarter Ended

 

March 31,

December 31,

March 31,

$ in millions (except per share data)

2024

2023

2023

Net Income

$

26.7

 

$

32.9

 

$

27.2

Diluted EPS

$

1.58

 

$

1.95

 

$

1.60

Adjusted Net Income (non-GAAP)*

$

26.9

 

$

33.3

 

$

28.0

Adjusted Diluted EPS (non-GAAP)*

$

1.59

 

$

1.97

 

$

1.65

 

 

 

 

 

 

 

 

 

*Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.

“We delivered strong first quarter results, highlighted by significant fee income and continued growth in both our core deposit and loan balances,” said Larry J. Helling, Chief Executive Officer. “In addition, we continued to benefit from well-managed expenses, improved upon our already excellent asset quality and further strengthened our capital levels.”

“Our bankers grew core deposits significantly during the quarter, adding to our strong and diversified deposit franchise. As a result, our ratio of loans held for investment to deposits improved to 93.6%,” added Mr. Helling.

Net Interest Income of $54.7 million

Net interest income for the first quarter of 2024 totaled $54.7 million, a decrease of $1.0 million from the fourth quarter of 2023. Several non-client factors drove this decrease, including the maturity of $125 million of interest rates caps on the Company’s indexed deposits and the conversion of $65 million of subordinated debt to a higher floating rate, which contributed a combined $1.3 million of additional interest expense. In addition, loan discount accretion decreased by $310 thousand and there was one less day in the quarter which had an impact of approximately $600 thousand decrease in net interest income. However, the Company’s net interest income driven by core activity saw growth of approximately $1.2 million during the first quarter, led by continued expansion in loan and investment yields.

In the first quarter of 2024, net interest margin (“NIM”) was 2.82% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP) was 3.25%, down from 2.90% and 3.32% in the prior quarter, respectively. Adjusted NIM TEY (non-GAAP) of 3.24%, was also down 5 basis points from 3.29% in the fourth quarter of 2023.

“Our adjusted NIM, on a tax equivalent yield basis, declined by 5 basis points from the fourth quarter of 2023 to 3.24% and was at the low end of our guidance range,” said Todd A. Gipple, President and Chief Financial Officer. “The decrease resulted primarily from non-client factors which collectively contributed to 7 basis points of NIM dilution. However, we were able to partially offset this non-client impact with core NIM expansion of 2 basis points. Notably, our core NIM expansion was less than expected due to additional shifts in our deposit composition. Looking ahead, considering the forward yield curve and assuming a static funding mix, we anticipate that the expansion in loan and investment yields will generally offset any further increase in our funding costs.”

Strong Noninterest Income Including $16.5 Million of Capital Markets Revenue

Noninterest income for the first quarter of 2024 totaled $26.9 million, down from the record results of $47.7 million in the fourth quarter of 2023. The Company generated $16.5 million of capital markets revenue in the quarter, as compared to the record $37.0 million in the prior quarter. Wealth management revenue was $4.3 million for the quarter, up 16% on an annualized basis from $4.1 million in the prior quarter.

“Our capital markets revenue was $16.5 million in the first quarter as our LIHTC lending and revenue from swap fees continues to benefit from the strong demand for affordable housing,” added Mr. Gipple. “Our LIHTC lending and capital markets revenue pipelines remain healthy.”

Well-Controlled Noninterest Expenses of $50.7 Million

Noninterest expense for the first quarter of 2024 totaled $50.7 million, compared to $60.9 million for the fourth quarter of 2023 and $48.8 million for the first quarter of 2023. The linked-quarter decrease was primarily due to lower incentive-based compensation related to our record fourth quarter and full year performance.

Exceptional Core Deposit Growth and Increased Liquidity

During the first quarter of 2024, the Company’s core deposits, which exclude brokered deposits, increased by $316.2 million, or 20.3% on an annualized basis, to $6.5 billion from $6.2 billion in the fourth quarter of 2023. “The exceptional deposit growth experienced in the first quarter reflects our commitment to expanding our market share with existing clients and establishing new relationships within the communities we serve,” added Mr. Helling.

Total uninsured and uncollateralized deposits remain very low at 20% of total deposits as of the end of the first quarter 2024, as compared to 18% as of the end of the fourth quarter of 2023. The Company increased its liquidity and maintained approximately $3.2 billion of available liquidity sources as of March 31, 2024, which includes $1.3 billion of immediately available liquidity.

Continued Strong Loan Growth

During the first quarter of 2024, the Company’s total loans and leases grew $104.9 million to $6.6 billion, or 6.4% on an annualized basis. During the quarter, the Company designated $275 million of low-income housing tax credit loans as loans held for sale in anticipation of the Company’s next loan securitization.

“Our ongoing strong performance validates our differentiated relationship-based community banking model as well as the underlying economic resiliency across our markets,” added Mr. Helling. “Given our current pipeline and the continued strength of our markets, we are maintaining our loan growth target for the full year 2024 of 8% to 10%, prior to the loan securitizations that we have planned for the year.”

Asset Quality Remains Excellent

Nonperforming assets (“NPAs”) totaled $31.3 million at the end of the first quarter, an 8.5% reduction from $34.2 million at the end of the fourth quarter of 2023. The ratio of NPAs to total assets also improved to 0.36% on March 31, 2024, compared to 0.40% on December 31, 2023. In addition, the Company’s criticized loans and classified loans to total loans and leases on March 31, 2024 improved to 2.75% and 1.07%, respectively, as compared to 2.99% and 1.08%, respectively as of December 31, 2023.

The Company recorded a total provision for credit losses of $3.0 million during the quarter and the allowance for credit losses to total loans held for investment was static quarter over quarter at 1.33%.

Continued Strong Capital Levels

As of March 31, 2024, the Company’s total risk-based capital ratio was 14.30%, the common equity tier 1 ratio was 9.91% and the tangible common equity to tangible assets ratio (“TCE”) (non-GAAP) was 8.94%. By comparison, these respective ratios were 14.29%, 9.67% and 8.75% as of December 31, 2023. The Company remains focused on growing capital and targeting TCE (non-GAAP) in the top quartile of the Company’s peer group.

The Company’s tangible book value per share (non-GAAP) increased by $1.12, or 10.2% annualized, during the fourth quarter. Accumulated other comprehensive income (“AOCI”) decreased $5.4 million during the quarter primarily due to a decrease in the value of the Company’s available for sale securities portfolio and certain derivatives resulting from the change in long-term interest rates. However, the combination of strong earnings and a modest dividend contributed to the improvement in tangible book value per share (non-GAAP).

Conference Call Details

The Company will host an earnings call/webcast tomorrow, April 24, 2024, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through May 1, 2024. The replay access information is 877-344-7529 (international 412-317-0088); access code 3766140. A webcast of the teleconference can be accessed on the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

About Us
QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018, and Guaranty Bank, also based in Springfield, Missouri, was acquired by the Company and merged with Springfield First Community Bank in 2022, with the combined entity operating under the Guaranty Bank name. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. Quad City Bank & Trust Company offers equipment loans and leases to businesses through its wholly owned subsidiary, m2 Equipment Finance, LLC, based in Waukesha, Wisconsin, and also provides correspondent banking services. The Company has 36 locations in Iowa, Missouri, Wisconsin and Illinois. As of March 31, 2024, the Company had $8.6 billion in assets, $6.6 billion in loans and $6.8 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,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies(including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the ongoing Israeli-Palestinian conflict and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (iv) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business as a result of the upcoming 2024 presidential election or any changes in response to failures of other banks; (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions and “fintech” companies, and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current Federal Deposit Insurance Corporation insurance limits and may withdraw deposits to diversity their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xixi) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

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

QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

As of

 

March 31,

December 31,

September 30,

June 30,

March 31,

 

 

2024

 

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

CONDENSED BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

$

80,988

 

$

97,123

 

$

104,265

 

$

84,084

 

$

64,295

 

Federal funds sold and interest-bearing deposits

 

77,020

 

 

140,369

 

 

80,650

 

 

175,012

 

 

253,997

 

Securities, net of allowance for credit losses

 

1,031,861

 

 

1,005,528

 

 

896,394

 

 

882,888

 

 

877,446

 

Loans receivable held for sale (1)

 

275,344

 

 

2,594

 

 

278,893

 

 

295,057

 

 

140,633

 

Loans/leases receivable held for investment

 

6,372,992

 

 

6,540,822

 

 

6,327,414

 

 

6,084,263

 

 

6,049,389

 

Allowance for credit losses

 

(84,470

)

 

(87,200

)

 

(87,669

)

 

(85,797

)

 

(86,573

)

Intangibles

 

13,131

 

 

13,821

 

 

14,537

 

 

15,228

 

 

15,993

 

Goodwill

 

139,027

 

 

139,027

 

 

139,027

 

 

139,027

 

 

138,474

 

Derivatives

 

183,888

 

 

188,978

 

 

291,295

 

 

170,294

 

 

130,350

 

Other assets

 

509,768

 

 

497,832

 

 

495,251

 

 

466,617

 

 

452,900

 

Total assets

$

8,599,549

 

$

8,538,894

 

$

8,540,057

 

$

8,226,673

 

$

8,036,904

 

 

 

 

 

 

 

Total deposits

$

6,806,775

 

$

6,514,005

 

$

6,494,852

 

$

6,606,720

 

$

6,501,663

 

Total borrowings

 

489,633

 

 

718,295

 

 

712,126

 

 

418,368

 

 

417,480

 

Derivatives

 

211,677

 

 

214,098

 

 

320,220

 

 

195,841

 

 

150,401

 

Other liabilities

 

184,122

 

 

205,900

 

 

184,476

 

 

183,055

 

 

165,866

 

Total stockholders' equity

 

907,342

 

 

886,596

 

 

828,383

 

 

822,689

 

 

801,494

 

Total liabilities and stockholders' equity

$

8,599,549

 

$

8,538,894

 

$

8,540,057

 

$

8,226,673

 

$

8,036,904

 

 

 

 

 

 

 

ANALYSIS OF LOAN PORTFOLIO

 

 

 

 

 

Loan/lease mix: (2)

 

 

 

 

 

Commercial and industrial - revolving

$

326,129

 

$

325,243

 

$

299,588

 

$

304,617

 

$

307,612

 

Commercial and industrial - other

 

1,374,333

 

 

1,390,068

 

 

1,381,967

 

 

1,308,853

 

 

1,322,384

 

Commercial and industrial - other - LIHTC

 

96,276

 

 

91,710

 

 

105,601

 

 

93,700

 

 

97,947

 

Total commercial and industrial

 

1,796,738

 

 

1,807,021

 

 

1,787,156

 

 

1,707,170

 

 

1,727,943

 

Commercial real estate, owner occupied

 

621,069

 

 

607,365

 

 

610,618

 

 

609,717

 

 

616,922

 

Commercial real estate, non-owner occupied

 

1,055,089

 

 

1,008,892

 

 

955,552

 

 

963,814

 

 

982,716

 

Construction and land development

 

410,918

 

 

477,424

 

 

472,695

 

 

437,682

 

 

448,261

 

Construction and land development - LIHTC

 

738,609

 

 

943,101

 

 

921,359

 

 

870,084

 

 

759,924

 

Multi-family

 

296,245

 

 

284,721

 

 

282,541

 

 

280,418

 

 

229,370

 

Multi-family - LIHTC

 

1,007,321

 

 

711,422

 

 

874,439

 

 

820,376

 

 

740,500

 

Direct financing leases

 

28,089

 

 

31,164

 

 

34,401

 

 

32,937

 

 

35,373

 

1-4 family real estate

 

563,358

 

 

544,971

 

 

539,931

 

 

535,405

 

 

532,491

 

Consumer

 

130,900

 

 

127,335

 

 

127,615

 

 

121,717

 

 

116,522

 

Total loans/leases

$

6,648,336

 

$

6,543,416

 

$

6,606,307

 

$

6,379,320

 

$

6,190,022

 

Less allowance for credit losses

 

84,470

 

 

87,200

 

 

87,669

 

 

85,797

 

 

86,573

 

Net loans/leases

$

6,563,866

 

$

6,456,216

 

$

6,518,638

 

$

6,293,523

 

$

6,103,449

 

 

 

 

 

 

 

ANALYSIS OF SECURITIES PORTFOLIO

 

 

 

 

 

Securities mix:

 

 

 

 

 

U.S. government sponsored agency securities

$

14,442

 

$

14,973

 

$

16,002

 

$

18,942

 

$

19,320

 

Municipal securities

 

884,469

 

 

853,645

 

 

764,017

 

 

743,608

 

 

731,689

 

Residential mortgage-backed and related securities

 

56,071

 

 

59,196

 

 

57,946

 

 

60,958

 

 

63,104

 

Asset backed securities

 

14,285

 

 

15,423

 

 

16,326

 

 

17,393

 

 

17,967

 

Other securities

 

40,539

 

 

41,115

 

 

43,272

 

 

43,156

 

 

46,535

 

Trading securities

 

22,258

 

 

22,368

 

 

-

 

 

-

 

 

-

 

Total securities (3)

$

1,032,064

 

$

1,006,720

 

$

897,563

 

$

884,057

 

$

878,615

 

Less allowance for credit losses

 

203

 

 

1,192

 

 

1,169

 

 

1,169

 

 

1,169

 

Net securities

$

1,031,861

 

$

1,005,528

 

$

896,394

 

$

882,888

 

$

877,446

 

 

 

 

 

 

 

ANALYSIS OF DEPOSITS

 

 

 

 

 

Deposit mix:

 

 

 

 

 

Noninterest-bearing demand deposits

$

955,167

 

$

1,038,689

 

$

1,027,791

 

$

1,101,605

 

$

1,189,858

 

Interest-bearing demand deposits

 

4,714,555

 

 

4,338,390

 

 

4,416,725

 

 

4,374,847

 

 

4,033,193

 

Time deposits

 

875,491

 

 

851,950

 

 

788,692

 

 

765,801

 

 

679,946

 

Brokered deposits

 

261,562

 

 

284,976

 

 

261,644

 

 

364,467

 

 

598,666

 

Total deposits

$

6,806,775

 

$

6,514,005

 

$

6,494,852

 

$

6,606,720

 

$

6,501,663

 

 

 

 

 

 

 

ANALYSIS OF BORROWINGS

 

 

 

 

 

Borrowings mix:

 

 

 

 

 

Term FHLB advances

$

135,000

 

$

135,000

 

$

135,000

 

$

135,000

 

$

135,000

 

Overnight FHLB advances

 

70,000

 

 

300,000

 

 

295,000

 

 

-

 

 

-

 

Other short-term borrowings

 

2,700

 

 

1,500

 

 

470

 

 

1,850

 

 

1,100

 

Subordinated notes

 

233,170

 

 

233,064

 

 

232,958

 

 

232,852

 

 

232,746

 

Junior subordinated debentures

 

48,763

 

 

48,731

 

 

48,698

 

 

48,666

 

 

48,634

 

Total borrowings

$

489,633

 

$

718,295

 

$

712,126

 

$

418,368

 

$

417,480

 

 

 

 

 

 

 

(1) Loans with a fair value of $274.8 million, $278.0 million, $291.0 million and $139.2 million have been identified for securitization and are included in LHFS at March 31, 2024, September 30, 2023, June 30, 2023 and March 31, 2023 respectively.

(2) Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $1.9 billion at March 31, 2024.

(3) As of March 31, 2024 and December 31, 2023, trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company in 2023.

 

 

 

 

 

 


QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

For the Quarter Ended

 

March 31,

December 31,

September 30,

June 30,

March 31,

 

 

2024

 

 

2023

 

 

2023

 

 

2023

 

2023

 

 

 

 

 

 

 

 

(dollars in thousands, except per share data)

 

 

 

 

 

 

INCOME STATEMENT

 

 

 

 

 

Interest income

$

115,049

 

$

112,248

 

$

108,568

 

$

98,377

$

94,217

 

Interest expense

 

60,350

 

 

56,512

 

 

53,313

 

 

45,172

 

37,407

 

Net interest income

 

54,699

 

 

55,736

 

 

55,255

 

 

53,205

 

56,810

 

Provision for credit losses

 

2,969

 

 

5,199

 

 

3,806

 

 

3,606

 

3,928

 

Net interest income after provision for credit losses

$

51,730

 

$

50,537

 

$

51,449

 

$

49,599

$

52,882

 

 

 

 

 

 

 

 

 

 

 

 

 

Trust fees

$

3,199

 

$

3,084

 

$

2,863

 

$

2,844

$

2,906

 

Investment advisory and management fees

 

1,101

 

 

1,052

 

 

947

 

 

986

 

879

 

Deposit service fees

 

2,022

 

 

2,008

 

 

2,107

 

 

2,034

 

2,028

 

Gains on sales of residential real estate loans, net

 

382

 

 

323

 

 

476

 

 

500

 

312

 

Gains on sales of government guaranteed portions of loans, net

 

24

 

 

24

 

 

-

 

 

-

 

30

 

Capital markets revenue

 

16,457

 

 

36,956

 

 

15,596

 

 

22,490

 

17,023

 

Securities gains (losses), net

 

-

 

 

-

 

 

-

 

 

12

 

(463

)

Earnings on bank-owned life insurance

 

868

 

 

832

 

 

1,807

 

 

838

 

707

 

Debit card fees

 

1,466

 

 

1,561

 

 

1,584

 

 

1,589

 

1,466

 

Correspondent banking fees

 

512

 

 

465

 

 

450

 

 

356

 

391

 

Loan related fee income

 

836

 

 

845

 

 

800

 

 

770

 

651

 

Fair value gain (loss) on derivatives

 

(163

)

 

(582

)

 

(336

)

 

83

 

(427

)

Other

 

154

 

 

1,161

 

 

299

 

 

18

 

339

 

Total noninterest income

$

26,858

 

$

47,729

 

$

26,593

 

$

32,520

$

25,842

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

$

31,860

 

$

41,059

 

$

32,098

 

$

31,459

$

32,003

 

Occupancy and equipment expense

 

6,514

 

 

6,789

 

 

6,228

 

 

6,100

 

5,914

 

Professional and data processing fees

 

4,613

 

 

4,223

 

 

4,456

 

 

4,078

 

3,514

 

Post-acquisition compensation, transition and integration costs

 

-

 

 

-

 

 

-

 

 

-

 

207

 

FDIC insurance, other insurance and regulatory fees

 

1,945

 

 

2,115

 

 

1,721

 

 

1,927

 

1,374

 

Loan/lease expense

 

378

 

 

834

 

 

826

 

 

652

 

556

 

Net cost of (income from) and gains/losses on operations of other real estate

 

(30

)

 

38

 

 

3

 

 

-

 

(67

)

Advertising and marketing

 

1,483

 

 

1,641

 

 

1,429

 

 

1,735

 

1,237

 

Communication and data connectivity

 

401

 

 

449

 

 

478

 

 

471

 

665

 

Supplies

 

275

 

 

333

 

 

335

 

 

281

 

305

 

Bank service charges

 

568

 

 

761

 

 

605

 

 

621

 

605

 

Correspondent banking expense

 

305

 

 

300

 

 

232

 

 

221

 

210

 

Intangibles amortization

 

690

 

 

716

 

 

691

 

 

765

 

766

 

Payment card processing

 

646

 

 

836

 

 

733

 

 

542

 

545

 

Trust expense

 

425

 

 

413

 

 

432

 

 

337

 

214

 

Other

 

617

 

 

431

 

 

814

 

 

538

 

737

 

Total noninterest expense

$

50,690

 

$

60,938

 

$

51,081

 

$

49,727

$

48,785

 

 

 

 

 

 

 

Net income before income taxes

$

27,898

 

$

37,328

 

$

26,961

 

$

32,392

$

29,939

 

Federal and state income tax expense

 

1,172

 

 

4,473

 

 

1,840

 

 

3,967

 

2,782

 

Net income

$

26,726

 

$

32,855

 

$

25,121

 

$

28,425

$

27,157

 

 

 

 

 

 

 

Basic EPS

$

1.59

 

$

1.96

 

$

1.50

 

$

1.70

$

1.62

 

Diluted EPS

$

1.58

 

$

1.95

 

$

1.49

 

$

1.69

$

1.60

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

16,783,348

 

 

16,734,080

 

 

16,717,303

 

 

16,701,950

 

16,776,289

 

Weighted average common and common equivalent shares outstanding

 

16,910,675

 

 

16,875,952

 

 

16,847,951

 

 

16,799,527

 

16,942,132

 

 

 

 

 

 

 


QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

As of and for the Quarter Ended

 

March 31,

December 31,

September 30,

June 30,

March 31,

 

 

2024

 

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

 

 

 

 

 

 

(dollars in thousands, except per share data)

 

 

 

 

 

 

COMMON SHARE DATA

 

 

 

 

 

Common shares outstanding

 

16,807,056

 

 

16,749,254

 

 

16,731,646

 

 

16,713,853

 

 

16,713,775

 

Book value per common share (1)

$

53.99

 

$

52.93

 

$

49.51

 

$

49.22

 

$

47.95

 

Tangible book value per common share (Non-GAAP) (2)

$

44.93

 

$

43.81

 

$

40.33

 

$

39.99

 

$

38.71

 

Closing stock price

$

60.74

 

$

58.39

 

$

48.52

 

$

41.03

 

$

43.91

 

Market capitalization

$

1,020,861

 

$

977,989

 

$

811,819

 

$

685,769

 

$

733,902

 

Market price / book value

 

112.51

%

 

100.31

%

 

98.00

%

 

83.36

%

 

91.57

%

Market price / tangible book value

 

135.18

%

 

133.29

%

 

120.30

%

 

102.59

%

 

113.43

%

Earnings per common share (basic) LTM (3)

$

6.75

 

$

6.78

 

$

6.65

 

$

6.89

 

$

6.06

 

Price earnings ratio LTM (3)

9.00 x

8.61 x

7.30 x

5.96 x

7.24 x

TCE / TA (Non-GAAP) (4)

 

8.94

%

 

8.75

%

 

8.05

%

 

8.28

%

 

8.21

%

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY

 

Beginning balance

$

886,596

 

$

828,383

 

$

822,689

 

$

801,494

 

$

772,724

 

Net income

 

26,726

 

 

32,855

 

 

25,121

 

 

28,425

 

 

27,157

 

Other comprehensive income (loss), net of tax

 

(5,373

)

 

25,363

 

 

(19,415

)

 

(6,336

)

 

9,325

 

Common stock cash dividends declared

 

(1,008

)

 

(1,004

)

 

(1,003

)

 

(1,003

)

 

(1,010

)

Repurchase and cancellation of shares of common stock as a result of a share repurchase program

 

-

 

 

-

 

 

-

 

 

(967

)

 

(7,719

)

Other (5)

 

401

 

 

999

 

 

991

 

 

1,076

 

 

1,017

 

Ending balance

$

907,342

 

$

886,596

 

$

828,383

 

$

822,689

 

$

801,494

 

 

 

 

 

 

 

 

 

 

 

 

 

REGULATORY CAPITAL RATIOS (6):

 

 

 

 

 

Total risk-based capital ratio

 

14.30

%

 

14.29

%

 

14.48

%

 

14.64

%

 

14.64

%

Tier 1 risk-based capital ratio

 

10.50

%

 

10.27

%

 

10.30

%

 

10.34

%

 

10.23

%

Tier 1 leverage capital ratio

 

10.33

%

 

10.03

%

 

9.92

%

 

10.06

%

 

9.73

%

Common equity tier 1 ratio

 

9.91

%

 

9.67

%

 

9.68

%

 

9.70

%

 

9.57

%

 

 

 

 

 

 

 

 

 

 

 

 

KEY PERFORMANCE RATIOS AND OTHER METRICS

 

 

 

 

 

Return on average assets (annualized)

 

1.25

%

 

1.53

%

 

1.21

%

 

1.44

%

 

1.37

%

Return on average total equity (annualized)

 

11.83

%

 

15.35

%

 

11.95

%

 

13.97

%

 

13.67

%

Net interest margin

 

2.82

%

 

2.90

%

 

2.89

%

 

2.93

%

 

3.18

%

Net interest margin (TEY) (Non-GAAP)(7)

 

3.25

%

 

3.32

%

 

3.31

%

 

3.29

%

 

3.52

%

Efficiency ratio (Non-GAAP) (8)

 

62.15

%

 

58.90

%

 

62.41

%

 

58.01

%

 

59.02

%

Gross loans/leases held for investment / total assets

 

74.11

%

 

76.60

%

 

74.09

%

 

73.96

%

 

75.27

%

Gross loans/leases held for investment / total deposits

 

93.63

%

 

100.41

%

 

97.42

%

 

92.09

%

 

93.04

%

Effective tax rate

 

4.20

%

 

11.98

%

 

6.82

%

 

12.25

%

 

9.29

%

Full-time equivalent employees (9)

 

986

 

 

996

 

 

987

 

 

1009

 

 

969

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCES

 

 

 

 

 

Assets

$

8,550,855

 

$

8,535,732

 

$

8,287,813

 

$

7,924,597

 

$

7,906,830

 

Loans/leases

 

6,598,614

 

 

6,483,572

 

 

6,476,512

 

 

6,219,980

 

 

6,165,115

 

Deposits

 

6,595,453

 

 

6,485,154

 

 

6,342,339

 

 

6,292,481

 

 

6,179,644

 

Total stockholders' equity

 

903,371

 

 

852,163

 

 

837,734

 

 

816,882

 

 

794,685

 

 

 

 

 

 

 

(1) Includes accumulated other comprehensive income (loss).

 

 

 

 

(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets. See GAAP to Non-GAAP reconciliations.

(3) LTM : Last twelve months.

 

 

 

 

 

(4) TCE / TCA : tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations.

 

(5) Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.

(6) Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.

(7) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.

 

 

 

(8) See GAAP to Non-GAAP reconciliations.

 

 

 

 

 

(9) The increase in full-time equivalent employees in the second quarter of 2023 and the subsequent decline in the third quarter of 2023 includes 19 summer interns.

 

 

 

 

 

 


QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANALYSIS OF NET INTEREST INCOME AND MARGIN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

 

Average Balance

Interest Earned or Paid

Average Yield or Cost

 

Average Balance

Interest Earned or Paid

Average Yield or Cost

 

Average Balance

Interest Earned or Paid

Average Yield or Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Fed funds sold

$

19,955

$

269

5.42

%

 

$

18,644

$

257

5.47

%

 

$

19,275

$

234

4.93

%

Interest-bearing deposits at financial institutions

 

91,557

 

1,200

5.27

%

 

 

72,439

 

986

5.40

%

 

 

73,584

 

821

4.53

%

Investment securities - taxable

 

373,540

 

4,261

4.55

%

 

 

365,686

 

4,080

4.45

%

 

 

332,640

 

3,366

4.05

%

Investment securities - nontaxable (1)

 

685,969

 

9,349

5.45

%

 

 

650,069

 

8,380

5.15

%

 

 

619,225

 

6,791

4.39

%

Restricted investment securities

 

38,085

 

674

7.00

%

 

 

40,625

 

670

6.45

%

 

 

37,766

 

513

5.43

%

Loans (1)

 

6,598,614

 

107,673

6.56

%

 

 

6,483,572

 

105,830

6.48

%

 

 

6,165,115

 

88,548

5.82

%

Total earning assets (1)

$

7,807,720

$

123,426

6.35

%

 

$

7,631,035

$

120,203

6.26

%

 

$

7,247,605

$

100,273

5.60

%

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

$

4,529,325

$

39,072

3.47

%

 

$

4,465,279

$

37,082

3.29

%

 

$

4,067,405

$

23,776

2.37

%

Time deposits

 

1,107,622

 

12,345

4.48

%

 

 

982,356

 

10,559

4.26

%

 

 

869,912

 

6,003

2.80

%

Short-term borrowings

 

1,763

 

23

5.16

%

 

 

1,101

 

15

5.18

%

 

 

7,573

 

99

5.28

%

Federal Home Loan Bank advances

 

355,220

 

4,738

5.28

%

 

 

360,000

 

4,841

5.26

%

 

 

296,333

 

3,521

4.75

%

Subordinated debentures

 

233,101

 

3,480

5.97

%

 

 

232,994

 

3,308

5.68

%

 

 

232,679

 

3,311

5.69

%

Junior subordinated debentures

 

48,742

 

692

5.62

%

 

 

48,710

 

708

5.68

%

 

 

48,613

 

696

5.72

%

Total interest-bearing liabilities

$

6,275,773

$

60,350

3.86

%

 

$

6,090,440

$

56,513

3.68

%

 

$

5,522,515

$

37,406

2.74

%

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (1)

 

$

63,076

 

 

 

$

63,690

 

 

 

$

62,867

 

Net interest margin (2)

 

 

2.82

%

 

 

 

2.90

%

 

 

 

3.18

%

Net interest margin (TEY) (Non-GAAP) (1) (2) (3)

 

 

3.25

%

 

 

 

3.32

%

 

 

 

3.52

%

Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)

 

 

3.24

%

 

 

 

3.29

%

 

 

 

3.47

%

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% tax rate.

(2) See "Select Financial Data - Subsidiaries" for a breakdown of amortization/accretion included in net interest margin for each period presented.

(3) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.


QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

March 31,

December 31,

September 30,

June 30,

March 31,

 

 

2024

 

 

2023

 

 

2023

 

 

2023

 

 

2023

 

 

 

 

 

 

 

 

(dollars in thousands, except per share data)

 

 

 

 

 

 

ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES

 

 

 

 

 

Beginning balance

$

87,200

 

$

87,669

 

$

85,797

 

$

86,573

 

$

87,706

 

Change in ACL for transfer of loans to LHFS

 

(3,377

)

 

266

 

 

175

 

 

(2,277

)

 

(1,709

)

Credit loss expense

 

3,736

 

 

2,519

 

 

3,260

 

 

3,313

 

 

2,458

 

Loans/leases charged off

 

(3,560

)

 

(3,354

)

 

(1,816

)

 

(1,947

)

 

(2,275

)

Recoveries on loans/leases previously charged off

 

471

 

 

100

 

 

253

 

 

135

 

 

393

 

Ending balance

$

84,470

 

$

87,200

 

$

87,669

 

$

85,797

 

$

86,573

 

 

 

 

 

 

 

 

 

 

 

 

 

NONPERFORMING ASSETS

 

 

 

 

 

Nonaccrual loans/leases

$

29,439

 

$

32,753

 

$

34,568

 

$

26,062

 

$

22,947

 

Accruing loans/leases past due 90 days or more

 

142

 

 

86

 

 

-

 

 

83

 

 

15

 

Total nonperforming loans/leases

 

29,581

 

 

32,839

 

 

34,568

 

 

26,145

 

 

22,962

 

Other real estate owned

 

784

 

 

1,347

 

 

120

 

 

-

 

 

61

 

Other repossessed assets

 

962

 

 

-

 

 

-

 

 

-

 

 

-

 

Total nonperforming assets

$

31,327

 

$

34,186

 

$

34,688

 

$

26,145

 

$

23,023

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSET QUALITY RATIOS

 

 

 

 

 

Nonperforming assets / total assets

 

0.36

%

 

0.40

%

 

0.41

%

 

0.32

%

 

0.29

%

ACL for loans and leases / total loans/leases held for investment

 

1.33

%

 

1.33

%

 

1.39

%

 

1.41

%

 

1.43

%

ACL for loans and leases / nonperforming loans/leases

 

285.55

%

 

265.54

%

 

253.61

%

 

328.16

%

 

377.03

%

Net charge-offs as a % of average loans/leases

 

0.05

%

 

0.05

%

 

0.02

%

 

0.03

%

 

0.03

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTERNALLY ASSIGNED RISK RATING (1) (2)

 

 

 

 

 

Special mention

$

111,729

 

$

125,308

 

$

128,052

 

$

117,761

 

$

125,170

 

Substandard/Classified loans (3)

 

70,841

 

 

70,425

 

 

72,550

 

 

67,192

 

 

74,307

 

Doubtful/Classified loans (3)

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

Criticized loans (4)

$

182,570

 

$

194,674

 

$

200,602

 

$

184,953

 

$

199,477

 

 

 

 

 

 

 

Classified loans as a % of total loans/leases

 

1.07

%

 

1.08

%

 

1.10

%

 

1.05

%

 

1.20

%

Criticized loans as a % of total loans/leases

 

2.75

%

 

2.98

%

 

3.04

%

 

2.90

%

 

3.22

%

 

 

 

 

 

 

(1) During the first quarter of 2024, the Company revised the risk rating scale used for credit quality monitoring.

(2) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass for the government guaranteed portion.

(3) Classified loans are defined as loans with internally assigned risk ratings of 10 or 11 (7 or 8 prior to January 1, 2024), regardless of performance.

(4) Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11 (6, 7, or 8 prior to January 1, 2024), regardless of performance.

 

 

 

 

 

 


QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Quarter Ended

 

 

March 31,

 

December 31,

 

March 31,

SELECT FINANCIAL DATA - SUBSIDIARIES

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

(dollars in thousands)

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

$

2,618,727

 

 

$

2,448,957

 

 

$

2,548,473

 

m2 Equipment Finance, LLC

 

 

350,801

 

 

 

345,682

 

 

 

317,497

 

Cedar Rapids Bank and Trust

 

 

2,423,936

 

 

 

2,419,146

 

 

 

2,196,560

 

Community State Bank

 

 

1,445,230

 

 

 

1,426,202

 

 

 

1,286,227

 

Guaranty Bank

 

 

2,327,985

 

 

 

2,281,296

 

 

 

2,147,776

 

 

 

 

 

 

 

 

TOTAL DEPOSITS

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

$

2,161,515

 

 

$

1,878,375

 

 

$

2,173,343

 

Cedar Rapids Bank and Trust

 

 

1,757,353

 

 

 

1,748,516

 

 

 

1,663,138

 

Community State Bank

 

 

1,187,926

 

 

 

1,169,921

 

 

 

1,086,531

 

Guaranty Bank

 

 

1,743,514

 

 

 

1,771,371

 

 

 

1,646,730

 

 

 

 

 

 

 

 

TOTAL LOANS & LEASES

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

$

2,046,038

 

 

$

1,983,679

 

 

$

1,872,029

 

m2 Equipment Finance, LLC

 

 

354,815

 

 

 

350,641

 

 

 

321,495

 

Cedar Rapids Bank and Trust

 

 

1,680,127

 

 

 

1,698,447

 

 

 

1,637,252

 

Community State Bank

 

 

1,113,070

 

 

 

1,099,262

 

 

 

994,454

 

Guaranty Bank

 

 

1,809,101

 

 

 

1,762,027

 

 

 

1,686,287

 

 

 

 

 

 

 

 

TOTAL LOANS & LEASES / TOTAL DEPOSITS

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

 

95

%

 

 

106

%

 

 

86

%

Cedar Rapids Bank and Trust

 

 

96

%

 

 

97

%

 

 

98

%

Community State Bank

 

 

94

%

 

 

94

%

 

 

92

%

Guaranty Bank

 

 

104

%

 

 

99

%

 

 

102

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LOANS & LEASES / TOTAL ASSETS

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

 

78

%

 

 

81

%

 

 

73

%

Cedar Rapids Bank and Trust

 

 

69

%

 

 

70

%

 

 

75

%

Community State Bank

 

 

77

%

 

 

77

%

 

 

77

%

Guaranty Bank

 

 

78

%

 

 

77

%

 

 

79

%

 

 

 

 

 

 

 

ACL ON LOANS/LEASES AS A PERCENTAGE OF LOANS/LEASES

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

 

1.40

%

 

 

1.48

%

 

 

1.41

%

m2 Equipment Finance, LLC

 

 

3.75

%

 

 

3.80

%

 

 

3.13

%

Cedar Rapids Bank and Trust

 

 

1.34

%

 

 

1.39

%

 

 

1.50

%

Community State Bank

 

 

1.12

%

 

 

1.23

%

 

 

1.38

%

Guaranty Bank

 

 

1.15

%

 

 

1.18

%

 

 

1.29

%

 

 

 

 

 

 

 

RETURN ON AVERAGE ASSETS

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

 

0.79

%

 

 

0.67

%

 

 

1.23

%

Cedar Rapids Bank and Trust

 

 

3.09

%

 

 

3.78

%

 

 

3.07

%

Community State Bank

 

 

1.25

%

 

 

1.11

%

 

 

1.49

%

Guaranty Bank

 

 

0.88

%

 

 

1.41

%

 

 

1.02

%

 

 

 

 

 

 

 

NET INTEREST MARGIN PERCENTAGE (2)

 

 

 

 

 

 

Quad City Bank and Trust (1)

 

 

3.31

%

 

 

3.41

%

 

 

3.44

%

Cedar Rapids Bank and Trust

 

 

3.77

%

 

 

3.84

%

 

 

4.03

%

Community State Bank

 

 

3.75

%

 

 

3.74

%

 

 

3.99

%

Guaranty Bank (3)

 

 

2.98

%

 

 

3.07

%

 

 

3.49

%

 

 

 

 

 

 

 

ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET

 

 

 

 

INTEREST MARGIN, NET

 

 

 

 

 

 

Cedar Rapids Bank and Trust

 

$

-

 

 

$

-

 

 

$

(8

)

Community State Bank

 

 

(1

)

 

 

(1

)

 

 

71

 

Guaranty Bank

 

 

396

 

 

 

706

 

 

 

797

 

QCR Holdings, Inc. (4)

 

 

(32

)

 

 

(32

)

 

 

(32

)

 

 

 

 

 

 

 

(1) Quad City Bank and Trust amounts include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC is also presented separately for certain (applicable) measurements.

(2) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% federal tax rate.

(3) Guaranty Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.91% for the quarter ended March 31, 2024, 2.95% for the quarter ended December 31, 2023 and 3.39% for the quarter ended March 31, 2023.

(4) Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.

 

 

 

 

 

 

 


QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

GAAP TO NON-GAAP RECONCILIATIONS

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

(dollars in thousands, except per share data)

TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity (GAAP)

 

$

907,342

 

 

$

886,596

 

 

$

828,383

 

 

$

822,689

 

 

$

801,494

 

Less: Intangible assets

 

 

152,158

 

 

 

152,848

 

 

 

153,564

 

 

 

154,255

 

 

 

154,467

 

Tangible common equity (non-GAAP)

 

$

755,184

 

 

$

733,748

 

 

$

674,819

 

 

$

668,434

 

 

$

647,027

 

 

 

 

 

 

 

 

 

 

 

 

Total assets (GAAP)

 

$

8,599,549

 

 

$

8,538,894

 

 

$

8,540,057

 

 

$

8,226,673

 

 

$

8,036,904

 

Less: Intangible assets

 

 

152,158

 

 

 

152,848

 

 

 

153,564

 

 

 

154,255

 

 

 

154,467

 

Tangible assets (non-GAAP)

 

$

8,447,391

 

 

$

8,386,046

 

 

$

8,386,493

 

 

$

8,072,418

 

 

$

7,882,437

 

 

 

 

 

 

 

 

 

 

 

 

Tangible common equity to tangible assets ratio (non-GAAP)

 

8.94

%

 

 

8.75

%

 

 

8.05

%

 

 

8.28

%

 

 

8.21

%

 

 

 

 

 

 

 

 

 

 

 

(1) This ratio is a non-GAAP financial measure. The Company's management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders' equity and total assets, which are the most directly comparable GAAP financial measures.

 

 

 

 

 

 

 

 

 

 

 


QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

GAAP TO NON-GAAP RECONCILIATIONS

 

For the Quarter Ended

 

 

March 31,

 

December 31,

 

September 30,

 

June 30,

 

March 31,

ADJUSTED NET INCOME (1)

 

 

2024

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

2023

 

 

 

(dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

 

$

26,726

 

 

$

32,855

 

 

$

25,121

 

 

$

28,425

 

 

$

27,157

 

 

 

 

 

 

 

 

 

 

 

 

Less non-core items (post-tax) (2):

 

 

 

 

 

 

 

 

 

 

Income:

 

 

 

 

 

 

 

 

 

 

Securities gains (losses), net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

9

 

 

 

(366

)

Fair value gain (loss) on derivatives, net

 

 

(129

)

 

 

(460

)

 

 

(265

)

 

 

66

 

 

 

(337

)

Total non-core income (non-GAAP)

 

$

(129

)

 

$

(460

)

 

$

(265

)

 

$

75

 

 

$

(703

)

 

 

 

 

 

 

 

 

 

 

 

Expense:

 

 

 

 

 

 

 

 

 

 

Post-acquisition compensation, transition and integration costs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

164

 

Total non-core expense (non-GAAP)

 

$

-

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

164

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (non-GAAP) (1)

 

$

26,855

 

 

$

33,315

 

 

$

25,386

 

 

$

28,350

 

 

$

28,024

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED EARNINGS PER COMMON SHARE (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (non-GAAP) (from above)

 

$

26,855

 

 

$

33,315

 

 

$

25,386

 

 

$

28,350

 

 

$

28,024

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

16,783,348

 

 

 

16,734,080

 

 

 

16,717,303

 

 

 

16,701,950

 

 

 

16,776,289

 

Weighted average common and common equivalent shares outstanding

 

 

16,910,675

 

 

 

16,875,952

 

 

 

16,847,951

 

 

 

16,799,527

 

 

 

16,942,132

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per common share (non-GAAP):

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.60

 

 

$

1.99

 

 

$

1.52

 

 

$

1.70

 

 

$

1.67

 

Diluted

 

$

1.59

 

 

$

1.97

 

 

$

1.51

 

 

$

1.69

 

 

$

1.65

 

 

 

 

 

 

 

 

 

 

 

 

ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income (non-GAAP) (from above)

 

$

26,855

 

 

$

33,315

 

 

$

25,386

 

 

$

28,350

 

 

$

28,024

 

 

 

 

 

 

 

 

 

 

 

 

Average Assets

 

$

8,550,855

 

 

$

8,535,732

 

 

$

8,287,813

 

 

$

7,924,597

 

 

$

7,906,830

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted return on average assets (annualized) (non-GAAP)

 

 

1.26

%

 

 

1.56

%

 

 

1.23

%

 

 

1.43

%

 

 

1.42

%

Adjusted return on average equity (annualized) (non-GAAP)

 

 

11.89

%

 

 

15.64

%

 

 

12.12

%

 

 

13.88

%

 

 

14.11

%

 

 

 

 

 

 

 

 

 

 

 

NET INTEREST MARGIN (TEY) (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

 

$

54,699

 

 

$

55,736

 

 

$

55,255

 

 

$

53,205

 

 

$

56,810

 

Plus: Tax equivalent adjustment (4)

 

 

8,377

 

 

 

7,954

 

 

 

7,771

 

 

 

6,542

 

 

 

6,057

 

Net interest income - tax equivalent (Non-GAAP)

 

$

63,076

 

 

$

63,690

 

 

$

63,026

 

 

$

59,747

 

 

$

62,867

 

Less: Acquisition accounting net accretion

 

 

363

 

 

 

673

 

 

 

539

 

 

 

134

 

 

 

828

 

Adjusted net interest income

 

$

62,713

 

 

$

63,017

 

 

$

62,487

 

 

$

59,613

 

 

$

62,039

 

 

 

 

 

 

 

 

 

 

 

 

Average earning assets

 

$

7,807,720

 

 

$

7,631,035

 

 

$

7,573,785

 

 

$

7,283,286

 

 

$

7,247,605

 

 

 

 

 

 

 

 

 

 

 

 

Net interest margin (GAAP)

 

 

2.82

%

 

 

2.90

%

 

 

2.89

%

 

 

2.93

%

 

 

3.18

%

Net interest margin (TEY) (Non-GAAP)

 

 

3.25

%

 

 

3.32

%

 

 

3.31

%

 

 

3.29

%

 

 

3.52

%

Adjusted net interest margin (TEY) (Non-GAAP)

 

 

3.24

%

 

 

3.29

%

 

 

3.28

%

 

 

3.28

%

 

 

3.47

%

 

 

 

 

 

 

 

 

 

 

 

EFFICIENCY RATIO (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

 

$

50,690

 

 

$

60,938

 

 

$

51,081

 

 

$

49,727

 

 

$

48,785

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

 

$

54,699

 

 

$

55,736

 

 

$

55,255

 

 

$

53,205

 

 

$

56,810

 

Noninterest income (GAAP)

 

 

26,858

 

 

 

47,729

 

 

 

26,593

 

 

 

32,520

 

 

 

25,842

 

Total income

 

$

81,557

 

 

$

103,465

 

 

$

81,848

 

 

$

85,725

 

 

$

82,652

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (noninterest expense/total income) (Non-GAAP)

 

 

62.15

%

 

 

58.90

%

 

 

62.41

%

 

 

58.01

%

 

 

59.02

%

 

 

 

 

 

 

 

 

 

 

 

(1) Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company's management believes that these measurements are important to investors as they exclude non-In compliance with applicable rules of the SEC, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.core or non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods.

(2) Non-core or nonrecurring items (post-tax) are calculated using an estimated effective federal tax rate of 21%.

 

 

 

 

 

 

(3) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.

 

 

(4) Net interest margin (TEY) is a non-GAAP financial measure. The Company's management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it's difficult to provide a more realistic run-rate for future periods.

(5) Efficiency ratio is a non-GAAP measure. The Company's management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures.