QCR Holdings, Inc. Announces Record Net Income of $31.6 Million for the Third Quarter of 2021

Wednesday, 27. October 2021 22:05

Third Quarter 2021 Highlights

  • Record net income of $31.6 million, or $1.99 per diluted share
  • Net Interest Margin (“NIM”) increased by 8 basis points and Adjusted NIM (TEY)(non-GAAP) increased by 9 bps to 3.36% and 3.53%, respectively
  • Adjusted net interest income (non-GAAP) increased $2.8 million, or 6.2%
  • Annualized core loan and lease growth (non-GAAP) of 23% for the quarter and 18% YTD, excluding SBA Paycheck Protection Program (“PPP”) loans
  • Annualized core deposit growth of 15.6% for the quarter
  • Nonperforming assets improved by 32% for the quarter and now represent only 0.11% of total assets
  • Allowance for credit losses (“ACL”) to total loans/leases of 1.79%, excluding PPP loans (non-GAAP)

MOLINE, Ill., Oct. 27, 2021 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced record net income of $31.6 million and diluted earnings per share (“EPS”) of $1.99 for the third quarter of 2021, compared to net income of $22.3 million and diluted EPS of $1.39 for the second quarter of 2021.

Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the third quarter of 2021 were the same as GAAP net income and diluted EPS, as there were no meaningful non-core adjustments during the quarter. For the second quarter of 2021, adjusted net income (non-GAAP) was $22.5 million and adjusted diluted EPS (non-GAAP) was $1.40. For the third quarter of 2020, adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $17.7 million and $1.11, respectively.

  For the Quarter Ended
 
  September 30,June 30,September 30,
 
 $ in millions (except per share data)202120212020
 
 Net Income$31.6$22.3$17.3 
 Diluted EPS$1.99$1.39$1.09 
 Adjusted Net Income (non-GAAP)$31.6$22.5$17.7 
 Adjusted Diluted EPS (non-GAAP)$1.99$1.40$1.11 

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

“We are very pleased with our outstanding financial performance for the third quarter,” said Larry J. Helling, Chief Executive Officer. “We delivered another record quarter of net income, driven by exceptional loan growth, strong fee income, an expanded net interest margin and strong credit quality. We grew core loans 23% on an annualized basis, largely funded with core deposit growth of 16%. This exceptional performance is reflective of our core values, one of which is our relationship-based community banking model, emphasizing the importance of strong relationships with new and existing clients.”

Annualized Loan and Lease Growth of 23% for the Quarter and 18% YTD, excluding PPP Loans (non-GAAP)

During the third quarter of 2021, the Company’s core loans and leases, excluding PPP loans, increased $246.0 million to a total of $4.5 billion. Core loan and lease growth during the quarter was 23.0% on an annualized basis and was funded by core deposit growth and some excess liquidity. Core deposits (excluding brokered deposits) increased by $183.0 million during the quarter. The Company’s wholesale funding portfolio has been reduced to predominately subordinated debt that qualifies as regulatory capital.

“Our continued robust loan growth was driven primarily by strength in our Specialty Finance Group as well as continued growth in our traditional commercial lending and leasing business,” added Helling. “Given the 18% annualized loan growth we have delivered over the first nine months of 2021, combined with our current pipeline, we are now targeting organic loan growth for the full year 2021 of between 16% and 18%.”

Record Net Interest Income of $46.2 million

Net interest income for the third quarter of 2021 totaled $46.2 million, compared to $43.5 million for the second quarter of 2021 and $44.6 million for the third quarter of 2020. Adjusted net interest income (non-GAAP) during the quarter was $48.5 million, an increase of $2.8 million, or 6.2%, from the prior quarter, due to an increase in adjusted NIM combined with strong loan/lease growth. Adjusted net interest income (non-GAAP) was $45.7 million for the third quarter of 2020. Acquisition-related net accretion totaled $456 thousand for the third quarter of 2021, up from $291 thousand in the second quarter of 2021 and down from $833 thousand for the third quarter of 2020.

In the third quarter, reported NIM was 3.36% and tax-equivalent yield basis (non-GAAP) NIM was 3.56%, compared to 3.28% and 3.46% in the prior quarter, respectively. Adjusted NIM (non-GAAP), which excludes acquisition-related net accretion, was 3.53%, up 9 basis points from the second quarter. The increase in Adjusted NIM (non-GAAP) during the quarter was primarily due to a 7 basis point increase in the yield on earning assets (adjusted for acquisition-related net accretion, non-GAAP) driven by fees associated with $63.9 million of PPP loans that were forgiven during the quarter. In addition, adjusted NIM benefited from a decline of 2 basis points in the total cost of interest-bearing funds (due to both mix and rate).

  For the Quarter Ended
 
  September 30,June 30,September 30, 
  202120212020 
 NIM3.36%3.28%3.36% 
 NIM (TEY)(non-GAAP) *3.56%3.46%3.51% 
 Adjusted NIM (TEY)(non-GAAP) *3.53%3.44%3.44% 
 * See GAAP to non-GAAP reconciliations
    

“We expanded our NIM again during the third quarter, bolstered by higher PPP fees, lower deposit costs and relatively stable core loan yields in this highly competitive lending environment,” said Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer. “With our strong loan and lease growth and margin expansion, net interest income grew by 6% in the quarter when excluding the impact of acquisition accounting.”

Noninterest Income of $34.7 million

Noninterest income for the third quarter of 2021 totaled $34.7 million, compared to $19.3 million for the second quarter of 2021. The increase was primarily due to a $15.3 million increase in capital markets revenue from the prior quarter. Wealth management revenue was $3.8 million for the quarter, consistent with the second quarter.

“Capital markets revenue totaled $24.9 million for the quarter, which benefited from a number of swap transactions that were scheduled to close in the second quarter carrying over into the third quarter,” added Gipple. “Capital markets revenue averaged $16 million per quarter for the first nine months of 2021 and $16.3 million for the last eight quarters. This gives us confidence in the sustainability of this important source of fee income and supports our continued guidance range of $14 to $18 million per quarter.”

Noninterest Expenses of $41.4 million

Noninterest expense for the third quarter of 2021 totaled $41.4 million, compared to $35.7 million for the second quarter of 2021 and $40.8 million for the third quarter of 2020. The linked-quarter increase was primarily due to higher performance-based salary and benefits expense of $5.2 million, driven by strong capital markets revenue production and earnings performance during the quarter. Additionally, the Company recorded a $1.5 million charge related to the write-down of certain fixed assets. Partially offsetting these increases was a $1.3 million net gain on the sale of other real estate.

Asset Quality Remains Strong and NPAs Improved

Nonperforming assets (“NPAs”) totaled $6.8 million at the end of the third quarter, a decrease of $3.3 million from the second quarter of 2021. The decrease was primarily due to the sale of a commercial property classified as other real estate owned and a reduction in nonaccrual loans that either returned to performing status or were monetized during the quarter. The ratio of NPAs to total assets improved to 0.11% on September 30, 2021, compared to 0.17% on June 30, 2021, and 0.31% on September 30, 2020. In addition, the Company’s criticized loans and classified loans to total loans and leases decreased to 2.57% and 1.29%, respectively, from 2.97% and 1.80% as of June 30, 2021.

The Company did not record a provision for credit losses in the third quarter of 2021, primarily due to continued strong asset quality and a reduction in nonperforming loans. Similarly, there was no provision for credit losses recorded in the second quarter of 2021. As of September 30, 2021, the ACL on total loans/leases was 1.75%, compared to 1.79% as of June 30, 2021. Excluding PPP loans of $84 million, the ACL to total loans/leases as of September 30, 2021, was 1.79% (non-GAAP).

Continued Strong Capital Levels

As of September 30, 2021, the Company’s total risk-based capital ratio was 14.51%, the common equity tier 1 ratio was 10.45% and the tangible common equity to tangible assets ratio (non-GAAP) was 9.54%. By comparison, these respective ratios were 14.72%, 10.52% and 9.55% as of June 30, 2021. During the third quarter, the Company continued its existing share repurchase program and purchased and retired 193,153 shares at an average price of $48.50 per share.

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 our annual operating expense growth to 5% per year.

Conference Call Details

The Company will host an earnings call/webcast tomorrow, October 28, 2021, 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 November 11, 2021. The replay access information is 877-344-7529 (international 412-317-0088); access code 10159948. 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, and Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. 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. The Company has 24 locations in Iowa, Missouri, Wisconsin and Illinois. As of September 30, 2021, the Company had approximately $6.0 billion in assets, $4.6 billion in loans and $4.9 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; (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 state and federal laws, regulations and governmental policies concerning the Company’s general business; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of LIBOR phase-out); (vi) increased competition in the financial services sector and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; and (xiii) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

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


       
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
       
  As of
  September 30,June 30,March 31,December 31,September 30,
  20212021202120202020
  (dollars in thousands)
CONDENSED BALANCE SHEET      
       
Cash and due from banks $57,310$55,598$78,814$61,329$68,932
Federal funds sold and interest-bearing deposits  70,826 88,780 55,056 95,676 302,668
Securities, net of allowance for credit losses  828,719 810,445 799,825 838,131 782,088
Net loans/leases  4,519,060 4,338,811 4,279,220 4,166,753 4,168,395
Intangibles  9,857 10,365 10,873 11,381 11,902
Goodwill  74,066 74,066 74,066 74,066 74,066
Derivatives  198,393 193,395 122,668 222,757 236,381
Other assets  256,277 233,705 224,625 212,704 220,128
Total assets $ 6,014,508$ 5,805,165$ 5,645,147$ 5,682,797$ 5,864,560
       
Total deposits $4,871,828$4,688,935$4,631,782$4,599,137$4,672,268
Total borrowings  183,514 198,908 188,601 177,114 226,962
Derivatives  201,450 196,092 125,863 229,270 244,510
Other liabilities  107,902 90,754 90,182 83,483 148,207
Total stockholders' equity  649,814 630,476 608,719 593,793 572,613
Total liabilities and stockholders' equity $ 6,014,508$ 5,805,165$ 5,645,147$ 5,682,797$ 5,864,560
       
ANALYSIS OF LOAN PORTFOLIO      
Loan/lease mix: (1)      
Commercial and industrial - revolving $175,155$182,882$168,842  
Commercial and industrial - other  1,465,580 1,505,384 1,616,144  
Commercial real estate, owner occupied  434,014 427,734 461,272  
Commercial real estate, non-owner occupied  644,850 618,879 610,582  
Construction and land development  852,418 708,289 607,798  
Multi-family  529,727 466,804 396,272  
Direct financing leases  50,237 56,153 60,134  
1-4 family real estate  376,067 382,142 368,927  
Consumer  71,682 69,438 71,080  
Total loans/leases $4,599,730$4,417,705$4,361,051  
Less allowance for credit losses (2)  80,670 78,894 81,831  
Net loans/leases $ 4,519,060$ 4,338,811$ 4,279,220  
       
Loan/lease mix: (1)      
Commercial and industrial loans $1,634,047$1,680,853$1,779,062$1,726,723$1,823,049
Commercial real estate loans  2,550,160 2,319,423 2,174,897 2,107,629 1,999,715
Direct financing leases  49,585 55,371 59,229 66,016 73,011
Residential real estate loans  270,522 268,193 254,900 252,121 245,032
Installment and other consumer loans  85,363 86,925 87,053 91,302 102,471
Deferred loan/lease origination costs, net of fees  10,053 6,940 5,910 7,338 4,699
Total loans/leases $4,599,730$4,417,705$4,361,051$4,251,129$4,247,977
Less allowance for credit losses (2)  80,670 78,894 81,831 84,376 79,582
Net loans/leases $ 4,519,060$ 4,338,811$ 4,279,220$ 4,166,753$ 4,168,395
       
ANALYSIS OF SECURITIES PORTFOLIO      
Securities mix:      
U.S. government sponsored agency securities $23,689$14,670$14,581$15,336$18,437
Municipal securities  649,486 641,603 614,649 627,523 569,075
Residential mortgage-backed and related securities  100,744 106,139 118,051 132,842 134,147
Asset backed securities  30,607 31,778 39,815 40,683 40,665
Other securities  24,367 16,429 12,903 21,747 19,764
Total securities $828,893$810,619$799,999$838,131$782,088
Less allowance for credit losses (2)  174 174 174 - -
Net securities $ 828,719$ 810,445$ 799,825$ 838,131$ 782,088
       
ANALYSIS OF DEPOSITS      
Deposit mix:      
Noninterest-bearing demand deposits $1,342,273$1,258,885$1,269,578$1,145,378$1,175,085
Interest-bearing demand deposits  3,086,711 2,976,696 2,916,054 2,987,469 2,938,194
Time deposits  441,743 452,171 445,067 460,659 499,021
Brokered deposits  1,101 1,183 1,084 5,631 59,968
Total deposits $ 4,871,828$ 4,688,935$ 4,631,782$ 4,599,137$ 4,672,268
       
ANALYSIS OF BORROWINGS      
Borrowings mix:      
Term FHLB advances $-$-$-$-$40,000
Overnight FHLB advances (3)  30,000 40,000 25,000 15,000 -
FRB borrowings  - - - - -
Other short-term borrowings  1,600 7,070 6,840 5,430 30,430
Subordinated notes  113,811 113,771 118,731 118,691 118,577
Junior subordinated debentures  38,103 38,067 38,030 37,993 37,955
Total borrowings $ 183,514$ 198,908$ 188,601$ 177,114$ 226,962
       
(1) The Company adopted ASU 2016-13 "CECL", effective January 1, 2021, which included a change in class of receivable and segment categories.
(2) The Company adopted ASU 2016-13 "CECL", effective January 1, 2021, which requires an allowance for credit losses ("ACL") on loans/leases, off-balance sheet ("OBS") exposures and held to maturity ("HTM") securities, recorded through the income statement within the provision for credit losses. The Day 1 adjustments to ACL were as follows: loans/leases ($8.1) million, OBS $9.1 million, HTM securities $183 thousand.
(3) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 0.30%. 
       


 
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
        
   For the Quarter Ended
   September 30,June 30,March 31,December 31,September 30,
    2021  2021  2021 2020  2020 
   (dollars in thousands, except per share data)
INCOME STATEMENT      
Interest income $51,667 $48,903 $47,565$49,851 $50,890 
Interest expense  5,438  5,387  5,590 6,144  6,309 
Net interest income  46,229  43,516  41,975 43,707  44,581 
Provision for credit losses (1)  -  -  6,713 7,080  20,342 
Net interest income after provision for loan/lease losses $ 46,229 $ 43,516 $ 35,262$ 36,627 $ 24,239 
        
        
Trust department fees $2,714 $2,848 $2,801$2,388 $2,280 
Investment advisory and management fees  1,054  1,039  940 926  1,266 
Deposit service fees  1,588  1,492  1,408 1,875  1,403 
Gain on sales of residential real estate loans  954  1,184  1,337 1,462  1,370 
Gain on sales of government guaranteed portions of loans  -  -  - 224  - 
Swap fee income/capital markets revenue  24,885  9,568  13,557 21,402  26,688 
Securities gains (losses), net  -  (88) - 617  1,802 
Earnings on bank-owned life insurance  446  451  471 461  502 
Debit card fees  1,085  1,084  975 923  946 
Correspondent banking fees  265  269  314 270  220 
Other   1,661  1,449  1,686 1,469  1,482 
Total noninterest income $ 34,652 $ 19,296 $ 23,489$ 32,017 $ 37,959 
        
        
Salaries and employee benefits $28,207 $23,044 $24,847$30,446 $25,999 
Occupancy and equipment expense  4,122  3,965  4,108 4,917  3,807 
Professional and data processing fees  3,568  3,702  3,443 3,871  3,758 
Post-acquisition compensation, transition and integration costs  -  -  - 25  (32)
Disposition costs  -  -  8 64  192 
FDIC insurance, other insurance and regulatory fees  1,108  986  1,065 1,272  1,301 
Loan/lease expense  308  457  300 465  403 
Net cost of (income from) and gains/losses on operations of other real estate  (1,346) (113) 39 (4) 16 
Advertising and marketing  1,095  853  627 1,276  750 
Bank service charges  525  572  523 523  488 
Losses on liability extinguishment  -  -  - 1,457  1,874 
Correspondent banking expense  201  198  200 205  205 
Intangibles amortization  508  508  508 521  531 
Loss (gain) on sale of subsidiary  -  -  - (147) 305 
Other   3,091  1,503  1,560 1,473  1,241 
Total noninterest expense $ 41,387 $ 35,675 $ 37,228$ 46,364 $ 40,838 
        
Net income before income taxes $ 39,494 $ 27,137 $ 21,523$ 22,280 $ 21,360 
Federal and state income tax expense  7,929  4,788  3,541 4,009  4,016 
Net income  $ 31,565 $ 22,349 $ 17,982$ 18,271 $ 17,344 
        
Basic EPS $2.02 $1.41 $1.14$1.16 $1.10 
Diluted EPS $1.99 $1.39 $1.12$1.14 $1.09 
        
        
Weighted average common shares outstanding  15,635,123  15,813,932  15,803,643 15,775,596  15,767,152 
Weighted average common and common equivalent shares outstanding  15,869,798  16,045,239  16,025,548 15,973,054  15,923,578 
        
(1) Provision for credit losses only included provision for loans/leases for years prior to 2021.    
        


      
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
      
   For Nine Months Ended
   September 30, September 30,
    2021   2020 
   (dollars in thousands, except per share data)
INCOME STATEMENT    
Interest income $148,135  $148,522 
Interest expense  16,415   25,279 
Net interest income  131,720   123,243 
Provision for credit losses (1)  6,713   48,624 
Net interest income after provision for loan/lease losses $ 125,007  $ 74,619 
      
      
Trust department fees $8,363  $6,819 
Investment advisory and management fees  3,033   4,392 
Deposit service fees  4,488   4,166 
Gain on sales of residential real estate loans  3,475   3,218 
Swap fee income/capital markets revenue  48,010   53,419 
Securities gains (losses), net  (88)  1,867 
Earnings on bank-owned life insurance  1,368   1,443 
Debit card fees  3,144   2,479 
Correspondent banking fees  848   633 
Other   4,796   3,345 
Total noninterest income $ 77,437  $ 81,781 
      
      
Salaries and employee benefits $76,098  $65,822 
Occupancy and equipment expense  12,195   11,587 
Professional and data processing fees  10,713   10,773 
Post-acquisition compensation, transition and integration costs  -   189 
Disposition costs  8   626 
FDIC insurance, other insurance and regulatory fees  3,159   2,892 
Loan/lease expense  1,065   970 
Net cost of (income from) and gains/losses on operations of other real estate (1,420)  (303)
Advertising and marketing  2,575   1,984 
Bank service charges  1,620   1,493 
Losses on liability extinguishment  -   2,450 
Correspondent banking expense  599   633 
Intangibles amortization  1,524   1,628 
Goodwill impairment  -   500 
Loss on sale of subsidiary  -   305 
Other   6,154   3,842 
Total noninterest expense $ 114,290  $ 105,391 
      
Net income before income taxes $ 88,154  $ 51,009 
Federal and state income tax expense  16,258   8,698 
Net income  $ 71,896  $ 42,311 
      
Basic EPS $4.54  $2.68 
Diluted EPS $4.48  $2.65 
      
      
Weighted average common shares outstanding  15,829,124   15,770,335 
Weighted average common and common equivalent shares outstanding  16,058,420   15,945,832 
      
(1) Provision for credit losses only included provision for loans/leases for years prior to 2021.  
      


 
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
          
  As of and for the Quarter Ended For the Nine Months Ended
  September 30,June 30,March 31,December 31,September 30, September 30,September 30,
   2021  2021  2021  2020  2020   2021  2020 
  (dollars in thousands, except per share data)
COMMON SHARE DATA         
Common shares outstanding  15,590,428  15,763,522  15,843,732  15,805,711  15,792,357    
Book value per common share (1) $41.68 $40.00 $38.42 $37.57 $36.26    
Tangible book value per common share (Non-GAAP) (2) $36.30 $34.64 $33.06 $32.16 $30.82    
Closing stock price $51.44 $48.09 $47.22 $39.59 $27.41    
Market capitalization $801,972 $758,068 $748,141 $625,748 $432,869    
Market price / book value  123.42% 120.24% 122.90% 105.38% 75.60%   
Market price / tangible book value  141.72% 138.83% 142.83% 123.09% 88.95%   
Earnings per common share (basic) LTM (3) $5.73 $4.81 $4.27 $3.84 $3.69    
Price earnings ratio LTM (3)  8.98x 10.00x 11.06x 10.31x 7.43x   
TCE / TA (Non-GAAP) (4)  9.54% 9.55% 9.42% 9.08% 8.42%   
          
          
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY     
Beginning balance $630,476 $608,719 $593,793 $572,613 $556,020    
Cumulative effect from the adoption of ASU 2016-13 "CECL"  -  -  (937) -  -    
Net income  31,565  22,349  17,982  18,271  17,344    
Other comprehensive income (loss), net of tax  (2,546) 4,179  (1,751) 3,157  (614)   
Common stock cash dividends declared  (946) (951) (949) (947) (945)   
Repurchase and cancellation of shares of common stock as a result of a share repurchase program  (9,367) (4,800) -  -  -    
Other (5)  632  980  581  699  808    
Ending balance $ 649,814 $ 630,476 $ 608,719 $ 593,793 $ 572,613    
          
          
REGULATORY CAPITAL RATIOS (6):         
Total risk-based capital ratio  14.51% 14.72% 14.85% 14.95% 14.93%   
Tier 1 risk-based capital ratio  11.16% 11.26% 11.31% 11.34% 11.25%   
Tier 1 leverage capital ratio  10.28% 10.29% 10.10% 9.49% 9.21%   
Common equity tier 1 ratio  10.45% 10.52% 10.55% 10.55% 10.44%   
          
          
KEY PERFORMANCE RATIOS AND OTHER METRICS          
Return on average assets (annualized)  2.12% 1.56% 1.27% 1.25% 1.19%  1.66% 1.02%
Return on average total equity (annualized)  19.30% 14.33% 11.91% 12.43% 12.06%  15.27% 10.51%
Net interest margin  3.36% 3.28% 3.26% 3.25% 3.36%  3.30% 3.29%
Net interest margin (TEY) (Non-GAAP)(7)  3.56% 3.46% 3.43% 3.45% 3.51%  3.49% 3.44%
Efficiency ratio (Non-GAAP) (8)  51.17% 56.80% 56.87% 61.23% 49.48%  54.64% 51.40%
Gross loans and leases / total assets  76.48% 76.10% 77.25% 74.81% 72.43%  76.48% 72.43%
Gross loans and leases / total deposits  94.41% 94.22% 94.15% 92.43% 90.92%  94.41% 90.92%
Effective tax rate  20.08% 17.64% 16.45% 17.99% 18.80%  18.44% 17.05%
Full-time equivalent employees (9)  724  725  720  714  687   724  687 
          
          
AVERAGE BALANCES          
Assets $5,960,336 $5,739,067 $5,668,850 $5,842,299 $5,820,555  $5,789,753 $5,524,087 
Loans/leases  4,529,136  4,412,322  4,271,782  4,250,951  4,185,275   4,405,355  3,957,903 
Deposits  4,779,876  4,709,732  4,628,889  4,742,602  4,726,881   4,706,719  4,472,328 
Total stockholders' equity  654,186  624,000  604,012  588,042  575,061   627,583  536,578 
          
(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) Growth in full-time equivalents from September 30, 2020 to December 31, 2020 due to the addition of new positions created to build scale. 
          


 
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
             
ANALYSIS OF NET INTEREST INCOME AND MARGIN         
             
  For the Quarter Ended
  September 30, 2021 June 30, 2021 September 30, 2020
  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 $3,030$10.10% $1,817$10.06% $2,205$10.18%
Interest-bearing deposits at financial institutions 99,024 390.16%  88,396 350.16%  321,679 920.11%
Securities (1)  799,471 7,6463.82%  798,732 7,2943.66%  749,425 6,8363.66%
Restricted investment securities 20,910 2624.97%  19,614 2384.79%  19,714 2494.94%
Loans (1)  4,529,136 46,4274.07%  4,412,322 43,7763.98%  4,185,275 45,6544.34%
Total earning assets (1)$5,451,571$54,3753.96% $5,320,881$51,3443.87% $5,278,298$52,8323.99%
             
Interest-bearing deposits$3,041,941$2,1830.28% $2,978,382$2,0500.28% $2,932,988$2,0860.28%
Time deposits  461,210 1,0900.94%  440,599 1,1841.08%  638,031 2,3991.50%
Short-term borrowings 6,858 10.10%  10,883 10.05%  26,996 110.17%
Federal Home Loan Bank advances 54,293 410.30%  21,802 150.28%  57,078 2111.45%
Subordinated debentures 113,789 1,5545.46%  115,339 1,5705.45%  77,783 1,0315.30%
Junior subordinated debentures 38,084 5695.84%  38,044 5645.86%  37,936 5715.89%
Total interest-bearing liabilities$3,716,175$5,4380.58% $3,605,049$5,3840.60% $3,770,812$6,3090.66%
             
Net interest income (1) $48,937   $45,960   $46,523 
Net interest margin (2)  3.36%   3.28%   3.36%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.56%   3.46%   3.51%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) 3.53%   3.44%   3.44%
             
             
  For the Nine Months Ended    
  September 30, 2021 September 30, 2020  
  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 $1,503$10.13% $2,795$190.89%    
Interest-bearing deposits at financial institutions 101,225 1100.15%  327,902 5870.24%    
Securities (1)  802,715 21,9893.65%  688,985 19,5673.78%    
Restricted investment securities 19,540 7184.85%  20,767 7955.03%    
Loans (1)  4,405,355 132,7284.03%  3,957,903 133,1414.49%    
Total earning assets (1)$5,330,338$155,5463.90% $4,998,352$154,1094.12%    
             
Interest-bearing deposits$3,000,766$6,2190.28% $2,718,613$9,9200.49%    
Time deposits  449,996 3,7161.10%  743,746 9,5371.71%    
Short-term borrowings 7,560 40.08%  23,804 810.45%    
Federal Home Loan Bank advances 29,875 660.29%  87,920 1,0071.50%    
Subordinated debentures 115,927 4,7185.43%  71,582 3,0195.63%    
Junior subordinated debentures 38,045 1,6925.86%  37,894 1,7155.95%    
Total interest-bearing liabilities$3,642,169$16,4150.60% $3,683,559$25,2790.91%    
             
Net interest income (1) $139,131   $128,830     
Net interest margin (2)  3.30%   3.29%    
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.49%   3.44%    
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) 3.46%   3.38%    
             
(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
  September 30,June 30,March 31,December 31,September 30,
   2021  2021  2021  2020  2020 
  (dollars in thousands, except per share data)
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES      
Beginning balance $78,894 $81,831 $84,376 $79,582 $60,827 
Adoption of ASU 2016-13 "CECL" - Day 1 adjustment  -  -  (8,102) -  - 
Provision charged to expense  1,895  (141) 5,993  7,080  20,342 
Loans/leases charged off  (287) (3,674) (713) (2,779) (1,819)
Recoveries on loans/leases previously charged off  168  878  277  493  232 
Ending balance $ 80,670 $ 78,894 $ 81,831 $ 84,376 $ 79,582 
       
       
NONPERFORMING ASSETS       
Nonaccrual loans/leases $6,818 $8,230 $13,863 $13,940 $17,597 
Accruing loans/leases past due 90 days or more  14  57  -  3  86 
Total nonperforming loans/leases  6,832  8,287  13,863  13,943  17,683 
Other real estate owned  -  1,820  173  20  125 
Other repossessed assets  -  -  50  135  110 
Total nonperforming assets $ 6,832 $ 10,107 $ 14,086 $ 14,098 $ 17,918 
       
       
ASSET QUALITY RATIOS      
Nonperforming assets / total assets  0.11% 0.17% 0.25% 0.25% 0.31%
ACL for loans and leases / total loans/leases (1)  1.75% 1.79% 1.88% 1.98% 1.87%
ACL for loans and leases / nonperforming loans/leases (1)  1180.77% 952.02% 590.28% 605.15% 450.05%
Net charge-offs as a % of average loans/leases  0.00% 0.06% 0.01% 0.05% 0.04%
       
       
       
INTERNALLY ASSIGNED RISK RATING (2)      
Special mention (rating 6) $58,634 $51,613 $53,466 $71,482 $79,587 
Substandard (rating 7)  59,402  79,719  84,982  66,081  70,409 
Doubtful (rating 8)  -  -  -  -  - 
  $118,036 $131,332 $138,448 $137,563 $149,996 
       
Criticized loans (3) $118,036 $131,332 $138,448 $137,563 $149,996 
Classified loans (4)  59,402  79,719  84,982  66,081  70,409 
       
Criticized loans as a % of total loans/leases  2.57% 2.97% 3.17% 3.24% 3.53%
Classified loans as a % of total loans/leases  1.29% 1.80% 1.95% 1.55% 1.66%
       
       
(1) Prior to adoption of ASU 2016-13 "CECL", upon acquisition and per GAAP, acquired loans were recorded at market value, which eliminates the allowance and impacts this ratio. There have been no acquisitions since adopting ASU 2016-13 "CECL", which requires an allowance to be established on acquired loans.
(2) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass (Rating 2) for the government guaranteed portion.
(3) Criticized loans are defined as C&I and CRE loans with internally assigned risk ratings of 6, 7, or 8, regardless of performance.
(4) 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 Nine Months Ended
   September 30, June 30, September 30, September 30, September 30,
 SELECT FINANCIAL DATA - SUBSIDIARIES  2021   2021   2020   2021   2020 
   (dollars in thousands)
 TOTAL ASSETS          
 Quad City Bank and Trust (1) $2,106,631  $2,059,634  $2,205,935     
 m2 Equipment Finance, LLC  259,543   255,338   241,452     
 Cedar Rapids Bank and Trust  2,019,018   1,913,761   2,012,182     
 Community State Bank - Ankeny  1,140,933   1,079,929   937,017     
 Springfield First Community Bank  880,143   850,067   803,478     
            
 TOTAL DEPOSITS          
 Quad City Bank and Trust (1) $1,797,969  $1,810,772  $1,955,360     
 Cedar Rapids Bank and Trust  1,526,144   1,395,721   1,399,267     
 Community State Bank - Ankeny  994,042   938,428   822,261     
 Springfield First Community Bank  605,947   608,676   592,528     
            
 TOTAL LOANS & LEASES          
 Quad City Bank and Trust (1) $1,636,170  $1,577,681  $1,556,798     
 m2 Equipment Finance, LLC  262,962   258,520   241,783     
 Cedar Rapids Bank and Trust  1,410,160   1,360,202   1,387,372     
 Community State Bank - Ankeny  834,533   786,208   683,086     
 Springfield First Community Bank  718,867   693,614   620,721     
            
 TOTAL LOANS & LEASES / TOTAL DEPOSITS          
 Quad City Bank and Trust (1)  91%  87%  80%    
 Cedar Rapids Bank and Trust  92%  97%  99%    
 Community State Bank - Ankeny  84%  84%  83%    
 Springfield First Community Bank  119%  114%  105%    
            
            
 TOTAL LOANS & LEASES / TOTAL ASSETS          
 Quad City Bank and Trust (1)  78%  77%  71%    
 Cedar Rapids Bank and Trust  70%  71%  69%    
 Community State Bank - Ankeny  73%  73%  73%    
 Springfield First Community Bank  82%  82%  77%    
            
 ACL ON LOANS/LEASES AS A PERCENTAGE OF LOANS/LEASES          
 Quad City Bank and Trust (1)  1.88%  1.91%  1.86%    
 m2 Equipment Finance, LLC  3.78%  3.61%  2.53%    
 Cedar Rapids Bank and Trust (2)  1.85%  1.92%  2.22%    
 Community State Bank - Ankeny (2)  1.73%  1.69%  1.92%    
 Springfield First Community Bank (2)  1.30%  1.35%  1.09%    
            
 RETURN ON AVERAGE ASSETS           
 Quad City Bank and Trust (1)  1.66%  1.64%  0.56%  1.55%  0.81%
 Cedar Rapids Bank and Trust  3.93%  2.39%  2.66%  2.95%  2.25%
 Community State Bank - Ankeny  1.17%  1.16%  0.82%  1.05%  0.53%
 Springfield First Community Bank  2.09%  1.77%  1.52%  1.69%  1.28%
            
 NET INTEREST MARGIN PERCENTAGE (3)          
 Quad City Bank and Trust (1)  3.47%  3.30%  3.07%  3.32%  3.17%
 Cedar Rapids Bank and Trust (4)  3.68%  3.60%  3.54%  3.61%  3.45%
 Community State Bank - Ankeny (5)  3.78%  3.66%  4.12%  3.71%  3.94%
 Springfield First Community Bank (6)  3.67%  3.54%  3.75%  3.59%  3.82%
            
 ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET        
 INTEREST MARGIN, NET          
 Cedar Rapids Bank and Trust $64  $92  $217  $169  $327 
 Community State Bank - Ankeny  52   68   56  $437   193 
 Springfield First Community Bank  376   168   598  $755   1,791 
 QCR Holdings, Inc. (7)  (36)  (37)  (38) $(110)  (117)
            
(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)Prior to adoption of ASU 2016-13 "CECL", upon acquisition and per GAAP, acquired loans were recorded at market value, which eliminates the allowance and impacts this ratio. There have been no acquisitions since adopting ASU 2016-13 "CECL", which requires an allowance to be established on acquired loans.
(3)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.
(4)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 3.66% for the quarter ended September 30, 2021, 3.67% for the quarter ended June 30, 2021 and 3.46% for the quarter ended September 30, 2020.
(5)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 September 30, 2021, 3.63% for the quarter ended June 30, 2021 and 4.06% for the quarter ended September 30, 2020.
(6)Springfield First Community Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 3.67% for the quarter ended September 30, 2021, 3.50% for the quarter ended June 30, 2021 and 4.02% for the quarter ended September 30, 2020.
(7)Relates to the trust preferred securities acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.


           
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
           
  As of
  September 30, June 30, March 31, December 31, September 30,
GAAP TO NON-GAAP RECONCILIATIONS  2021   2021   2021   2020   2020 
  (dollars in thousands, except per share data)
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)          
           
Stockholders' equity (GAAP) $649,814  $630,476  $608,719  $593,793  $572,613 
Less: Intangible assets  83,923   84,431   84,939   85,447   85,968 
Tangible common equity (non-GAAP) $565,891  $546,045  $523,780  $508,346  $486,645 
           
Total assets (GAAP) $6,014,508  $5,805,165  $5,645,147  $5,682,797  $5,864,560 
Less: Intangible assets  83,923   84,431   84,939   85,447   85,968 
Tangible assets (non-GAAP) $5,930,585  $5,720,734  $5,560,208  $5,597,350  $5,778,592 
           
Tangible common equity to tangible assets ratio (non-GAAP) 9.54%  9.55%  9.42%  9.08%  8.42%
           
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO EXCLUDING PPP LOANS (1)          
           
Stockholder's equity (GAAP) $649,814  $630,476  $608,719  $593,793  $572,613 
Less: PPP loan interest income (post-tax) (2)  12,297   10,788   9,479   7,691   4,934 
Less: Intangible assets  83,923   84,431   84,939   85,447   85,968 
Tangible common equity, excluding PPP loan income (non-GAAP)$553,594  $535,257  $514,301  $500,655  $481,711 
           
Total assets (GAAP) $6,014,508  $5,805,165  $5,645,147  $5,682,797  $5,864,560 
Less: PPP loans  83,575   147,506   243,860   273,146   357,506 
Less: Intangible assets  83,923   84,431   84,939   85,447   85,968 
Tangible assets, excluding PPP loans (non-GAAP) $5,847,010  $5,573,228  $5,316,348  $5,324,204  $5,421,086 
           
Tangible common equity to tangible assets ratio, excluding PPP loans (non-GAAP)  9.47%  9.60%  9.67%  9.40%  8.89%
           
           
(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.
(2) PPP interest income (post-tax) is calculated using an estimated effective tax rate of 21%.      
           


               
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
               
GAAP TO NON-GAAP RECONCILIATIONS For the Quarter Ended For the Nine Months Ended
  September 30, June 30, March 31, December 31, September 30, September 30, September 30,
ADJUSTED NET INCOME (1)  2021   2021   2021   2020   2020   2021   2020 
  (dollars in thousands, except per share data)
               
Net income (GAAP) $31,565  $22,349  $17,982  $18,271  $17,344  $71,896  $42,311 
               
Less non-core items (post-tax) (2):              
Income:              
Securities gains(losses), net  -   (69)  -   487   1,424  $(69) $1,475 
Mark to Market gains (losses) on derivatives, net  (13)  (58)  129   -   -   58  $- 
Gain on sale of loan  28   -   -   -   -   28   
Loss on syndicated loan  -   -   -   (210)  -   -  $- 
Total non-core income (non-GAAP) $15  $(127) $129  $277  $1,424  $17  $1,475 
               
Expense:              
Losses on debt extinguishment, net $-  $-  $-  $1,151  $1,480  $-  $1,936 
Goodwill impairment  -   -   -   -   -   -   500 
Disposition costs  -   -   7   51   152   7   495 
Acquisition costs (4)  -   -   -   -   -   -   - 
Separation agreement  -   -   734   -   -   734   - 
Post-acquisition compensation, transition and integration costs  -   -   -   20   (25)  -   149 
Loss on sale of subsidiary  -   -   -   (102)  212   -   212 
Total non-core expense (non-GAAP) $-  $-  $741  $1,119  $1,819  $741  $3,291 
Adjusted net income (non-GAAP) (1) $ 31,550  $ 22,476  $ 18,594  $ 19,113  $ 17,739  $ 72,620  $ 44,127 
               
ADJUSTED EARNINGS PER COMMON SHARE (1)              
               
Adjusted net income (non-GAAP) (from above) $31,550  $22,476  $18,594  $19,113  $17,739  $72,620  $44,127 
               
Weighted average common shares outstanding  15,635,123   15,813,932   15,803,643   15,775,596   15,767,152   15,829,124   15,770,335 
Weighted average common and common equivalent shares outstanding  15,869,798   16,045,239   16,025,548   15,973,054   15,923,578   16,058,420   15,945,832 
               
Adjusted earnings per common share (non-GAAP):              
Basic $ 2.02  $ 1.42  $ 1.18  $ 1.21  $ 1.13  $ 4.59  $ 2.80 
Diluted $ 1.99  $ 1.40  $ 1.16  $ 1.20  $ 1.11  $ 4.52  $ 2.77 
               
ADJUSTED RETURN ON AVERAGE ASSETS (1)              
               
Adjusted net income (non-GAAP) (from above) $31,550  $22,476  $18,594  $19,113  $17,739  $72,620  $44,127 
               
Average Assets $5,960,336  $5,739,067  $5,668,850  $5,842,299  $5,820,555  $5,789,753  $5,524,087 
               
Adjusted return on average assets (annualized) (non-GAAP)  2.12%  1.57%  1.31%  1.31%  1.22%  1.67%  1.07%
               
NET INTEREST MARGIN (TEY) (4)              
               
Net interest income (GAAP) $46,229  $43,516  $41,975  $43,707  $44,581  $131,720  $123,243 
               
Plus: Tax equivalent adjustment (3)  2,708   2,444   2,267   2,631   1,942   7,411   5,587 
               
Net interest income - tax equivalent (Non-GAAP) $48,937  $45,960  $44,242  $46,338  $46,523  $139,131  $128,830 
               
Less: Acquisition accounting net accretion  456   291   504   1,077   833   1,251   2,194 
               
Adjusted net interest income $48,481  $45,669  $43,738  $45,261  $45,690  $137,880  $126,636 
               
Average earning assets $5,451,571  $5,320,881  $5,218,198  $5,345,677  $5,278,298  $5,330,338  $4,998,352 
               
Net interest margin (GAAP)  3.36%  3.28%  3.26%  3.25%  3.36%  3.30%  3.29%
Net interest margin (TEY) (Non-GAAP)  3.56%  3.46%  3.43%  3.45%  3.51%  3.49%  3.44%
Adjusted net interest margin (TEY) (Non-GAAP)  3.53%  3.44%  3.40%  3.37%  3.44%  3.46%  3.38%
               
EFFICIENCY RATIO (5)              
               
Noninterest expense (GAAP) $41,387  $35,675  $37,228  $46,364  $40,838  $114,290  $105,391 
               
Net interest income (GAAP) $46,229  $43,516  $41,975  $43,707  $44,581  $131,720  $123,243 
Noninterest income (GAAP)  34,652   19,296   23,489   32,017   37,959   77,437   81,781 
Total income $80,881  $62,812  $65,464  $75,724  $82,540  $209,157  $205,024 
               
Efficiency ratio (noninterest expense/total income) (Non-GAAP)  51.17%  56.80%  56.87%  61.23%  49.48%  54.64%  51.40%
               
ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES TO TOTAL LOANS/LEASES, EXCLUDING PPP LOANS (6)              
               
Allowance for credit losses on loans and leases $80,670  $78,894  $81,831  $84,376  $79,582  $80,670  $79,582 
               
Total loans and leases $4,599,730  $4,417,705  $4,361,051  $4,251,129  $4,247,977  $4,599,730  $4,247,977 
Less: PPP loans  83,575   147,506   243,860   273,146   357,506   83,575   357,506 
Total loans and leases, excluding PPP loans $4,516,155  $4,270,199  $4,117,191  $3,977,983  $3,890,471  $4,516,155  $3,890,471 
               
Allowance for credit losses on loans and leases to total loans and leases, excluding PPP loans  1.79%  1.85%  1.99%  2.12%  2.05%  1.79%  2.05%
               
               
LOAN GROWTH ANNUALIZED, EXCLUDING PPP LOANS              
Total loans and leases $4,599,730  $4,417,705  $4,361,051  $4,251,129  $4,247,977  $4,599,730  $4,247,977 
Less: PPP loans  83,575   147,506   243,860   273,146   357,506   83,575   357,506 
Total loans and leases, excluding PPP loans $4,516,155  $4,270,199  $4,117,191  $3,977,983  $3,890,471  $4,516,155  $3,890,471 
               
Loan growth annualized, excluding PPP loans  23.04%  14.87%  14.00%  9.00%  11.45%  16.08%  16.28%
               
               
(1) Adjusted net income, Adjusted net income attributable to QCR Holdings, Inc. common stockholders, Adjusted earnings per common share and Adjusted return on average assets are non-GAAP financial measures. The Company's management believes that these measurements are important to investors as they exclude non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net income, which is the most directly comparable GAAP financial measure.
(2) Nonrecurring items (post-tax) are calculated using an estimated effective tax rate of 21% with the exception of goodwill impairment which is not deductible for tax and gain/loss on sale of assets and liabilities of subsidiary has an estimated effective tax rate of 30.5%.
(3) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21%.        
(4) Net interest margin (TEY) is a non-GAAP financial measure. The Company's management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it's difficult to provide a more realistic run-rate for future periods.
(5) Efficiency ratio is a non-GAAP measure. The Company's management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures.
(6) Allowance for credit losses on loans and leases to total loans and leases, excluding PPP loans is a non-GAAP measure. The Company's management utilizes this ratio to remove from the allowance calculation the impact of PPP loans which are fully guaranteed by the federal government and for which these loans have no allowance for loan and lease loss allocation.

 


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