QCR Holdings, Inc. Announces Record Net Income of $22.3 Million for the Second Quarter of 2021

Moline, Illinois, UNITED STATES


Second Quarter 2021 Highlights

  • Record net income of $22.3 million, or $1.39 per diluted share
  • Adjusted net income (non-GAAP) of $22.5 million, or $1.40 per diluted share
  • Net Interest Margin (“NIM”) increased by 2 basis points and Adjusted NIM (TEY)(non-GAAP) increased by 4 bps to 3.28% and 3.44%, respectively
  • Adjusted net interest income (non-GAAP) increased $1.9 million, or 4.4%
  • Annualized core loan and lease growth (non-GAAP) of 14.9% for the quarter, excluding SBA Paycheck Protection Program (“PPP”) loans
  • Annualized core deposit growth of 4.9% for the quarter
  • Allowance for credit losses (“ACL”) to total loans/leases of 1.85%, excluding PPP loans (non-GAAP)
  • Nonperforming assets improved by 28% for the quarter and now represent only 0.17% of total assets

MOLINE, Ill., July 26, 2021 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced record net income of $22.3 million and diluted earnings per share (“EPS”) of $1.39 for the second quarter of 2021, compared to net income of $18.0 million and diluted EPS of $1.12 for the first quarter of 2021.

The Company reported adjusted net income (non-GAAP) of $22.5 million and adjusted diluted EPS (non-GAAP) of $1.40 for the second quarter of 2021, compared to adjusted net income (non-GAAP) of $18.6 million and adjusted diluted EPS (non-GAAP) of $1.16 for the first quarter of 2021. For the second quarter of 2020, net income and diluted EPS were $13.7 million and $0.86, respectively, and adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $14.0 million and $0.88, respectively.

 For the Quarter Ended  
 June 30,March 31,June 30,  
$ in millions (except per share data) 2021 2021 2020  
Net Income$22.3$18.0$13.7  
Diluted EPS$1.39$1.12$0.86  
Adjusted Net Income (non-GAAP)$22.5$18.6$14.0  
Adjusted Diluted EPS (non-GAAP)$1.40$1.16$0.88  

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

“We delivered a record quarter of net income, driven by continued strong loan growth, an expanded net interest margin, improved asset quality and careful noninterest expense management,” said Larry J. Helling, Chief Executive Officer. "We successfully deployed our liquidity with another quarter of strong loan and lease production, while maintaining disciplined underwriting. Higher average loan balances, combined with an improved net interest margin, enabled us to generate a solid increase in net interest income from the prior quarter.”

Annualized Loan and Lease Growth of 14.9% for the Quarter, excluding PPP Loans (non-GAAP)

During the second quarter of 2021, the Company’s core loans and leases, excluding PPP loans, increased $153.0 million to a total of $4.3 billion. Core loan and lease growth during the quarter was 14.9% on an annualized basis and was funded by the Company’s excess liquidity and core deposit growth. Core deposits (excluding brokered deposits) increased by $57.0 million during the quarter. The Company’s wholesale funding portfolio has been reduced to predominately subordinated debt that qualifies as regulatory capital.

“Our continued outsized loan growth for the quarter was driven by strength in both our Specialty Finance Group and our core commercial lending and leasing business,” added Helling. “Given the robust first half results, combined with our current pipeline, we are targeting continued strong organic loan growth for the full year 2021 of between 10% and 12%, which is higher than our long-term goal of 9%.”  

Net Interest Income of $43.5 million

Net interest income for the second quarter of 2021 totaled $43.5 million, compared to $42.0 million for the first quarter of 2021 and $41.0 million for the second quarter of 2020. Adjusted net interest income (non-GAAP) during the quarter was $45.7 million, an increase of $1.9 million, or 4.4%, from the prior quarter, primarily due to an increase in adjusted net interest margin combined with the strong loan/lease growth. Adjusted net interest income (non-GAAP) was $41.9 million for the second quarter of 2020. Acquisition-related net accretion totaled $291 thousand for the second quarter of 2021, down from $504 thousand in the first quarter of 2021 and $736 thousand for the second quarter of 2020.

In the second quarter, reported NIM was 3.28% and, on a tax-equivalent yield basis (non-GAAP), NIM was 3.46%, as compared to 3.26% and 3.43% in the first quarter of 2021, respectively. Adjusted NIM (non-GAAP), which excludes acquisition-related net accretion was 3.44%, up 4 basis points from the first quarter. The increase in Adjusted NIM (non-GAAP) during the quarter was due to a decline of 3 basis points in the total cost of interest-bearing funds (due to both mix and rate), and a 1 basis point increase in the yield on earning assets (adjusted for acquisition-related net accretion).

   

 For the Quarter Ended
 June 30,March 31,June 30,
 202120212020
NIM3.28%3.26%3.14%
NIM (TEY)(non-GAAP)3.46%3.43%3.27%
Adjusted NIM (TEY)(non-GAAP)3.44%3.40%3.21%
See GAAP to non-GAAP reconciliations
   
    

“We expanded our adjusted net interest margin again during the second quarter driven by lower deposit costs. Additionally, our average yield on interest earning assets was up slightly during the quarter. Our talented team of bankers continues to have success implementing our relationship-based model, leading to improved cost of funds and minimizing loan yield reductions in this highly competitive environment. With our strong loan and lease growth and margin expansion, net interest income grew by over 4% in the quarter when excluding the impact of acquisition accounting,” said Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer.

Noninterest Income of $19.3 million

Noninterest income for the second quarter of 2021 totaled $19.3 million, compared to $23.5 million for the first quarter of 2021. The decrease was primarily due to a $4.0 million reduction in capital markets revenue from the prior quarter as a few of the Company’s swap loans that were scheduled to close in the second quarter will now close in the third quarter. Wealth management revenue was $3.9 million for the quarter, up $146 thousand from the first quarter.

“Swap fee income/capital markets revenue totaled $9.6 million for the quarter, which was lower than our guidance. Several of our swap loans that were scheduled to close in the second quarter were temporarily delayed due to factors outside of the Company’s control. Most of those loans subsequently closed in July, where we have experienced very strong activity and as of July 23rd we have already generated $10 million in swap fees this month. The current pipeline of swap loans remains healthy and we believe this source of revenue is sustainable long-term,” added Gipple. “As a result, we expect our third quarter swap fee income/capital markets revenue will be at the upper end of our guidance range of $14 to $18 million.”

Noninterest Expenses of $35.7 million

Noninterest expense for the second quarter of 2021 totaled $35.7 million, compared to $37.2 million for the first quarter of 2021 and $33.1 million for the second quarter of 2020. The linked-quarter decline was primarily due to lower salary and benefits expense of $1.8 million, driven by lower incentive compensation and commission expense in the quarter due to the lower capital markets revenue income. Partially offsetting this decrease was a $259 thousand increase in professional and data processing fees and a $226 thousand increase in advertising and marketing expense, both returning to more normalized levels from their lower levels in the first quarter.

Asset Quality Remains Strong and NPAs Improved

Nonperforming assets (“NPAs”) totaled $10.1 million at the end of the second quarter, a decrease of $4.0 million from the first quarter of 2021. The decrease was primarily due to a reduction in nonaccrual loans as a number of loans returned to performing status or were either monetized or were charged-off during the quarter. The ratio of NPAs to total assets improved to 0.17% on June 30, 2021, compared to 0.25% on March 31, 2021, and 0.22% on June 30, 2020. In addition, the Company’s criticized loans and classified loans to total loans and leases decreased to 2.97% and 1.80%, respectively, from 3.17% and 1.95% as of March 31, 2021.

The Company did not record a provision for credit losses in the second quarter of 2021, primarily due to continued strong asset quality and a reduction in nonperforming loans. The provision for credit losses totaled $6.7 million for the first quarter of 2021. As of June 30, 2021, the ACL on total loans/leases was 1.79%, compared to 1.88% as of March 31, 2021. Excluding PPP loans of $148 million, the ACL to total loans/leases as of June 30, 2021, was 1.85% (non-GAAP).

Continued Strong Capital Levels

As of June 30, 2021, the Company’s total risk-based capital ratio was 14.77%, the common equity tier 1 ratio was 10.57% and the tangible common equity to tangible assets ratio (non-GAAP) was 9.55%. By comparison, these respective ratios were 14.85%, 10.55% and 9.42% as of March 31, 2021. During the second quarter, the Company resumed share repurchases under its existing share repurchase program and purchased and retired 100,000 shares at an average price of $48.00 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:

  • 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, July 27, 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 August 10, 2021. The replay access information is 877-344-7529 (international 412-317-0088); access code 10158303. 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 23 locations in Iowa, Missouri, Wisconsin and Illinois. As of June 30, 2021, the Company had approximately $5.8 billion in assets, $4.4 billion in loans and $4.7 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “predict,” “suggest,” “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.
        
A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies (including the impact of the new presidential administration); (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, the Securities Exchange Commission or the PCAOB, including FASB’s CECL impairment standards; (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. GippleKim K. Garrett
PresidentVice President
Chief Operating OfficerCorporate Communications
Chief Financial OfficerInvestor Relations Manager
(309) 743-7745(319) 743-7006
tgipple@qcrh.comkgarret@qcrh.com 


                   


QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
      
 As of
 June 30,March 31,December 31,September 30,June 30,
 20212021202020202020
      
 (dollars in thousands)
      
CONDENSED BALANCE SHEET     
      
Cash and due from banks$55,598$78,814$61,329$68,932$88,577
Federal funds sold and interest-bearing deposits 88,780 55,056 95,676 302,668 142,900
Securities, net of allowance for credit losses 810,445 799,825 838,131 782,088 748,883
Net loans/leases 4,338,811 4,279,220 4,166,753 4,168,395 4,079,432
Intangibles 10,365 10,873 11,381 11,902 13,872
Goodwill 74,066 74,066 74,066 74,066 74,248
Derivatives 193,395 122,668 222,757 236,381 225,164
Other assets 233,705 224,625 212,704 220,128 220,920
Assets held for sale - - - - 10,765
Total assets$ 5,805,165$ 5,645,147$ 5,682,797$ 5,864,560$ 5,604,761
      
Total deposits$4,688,935$4,631,782$4,599,137$4,672,268$4,349,775
Total borrowings 198,908 188,601 177,114 226,962 376,250
Derivatives 196,092 125,863 229,270 244,510 233,589
Other liabilities 90,754 90,182 83,483 148,207 87,539
Liabilities held for sale - - - - 1,588
Total stockholders' equity 630,476 608,719 593,793 572,613 556,020
Total liabilities and stockholders' equity$ 5,805,165$ 5,645,147$ 5,682,797$ 5,864,560$ 5,604,761
      
ANALYSIS OF LOAN PORTFOLIO     
Loan/lease mix: (1)     
Commercial and industrial - revolving$182,882$168,842   
Commercial and industrial - other 1,505,384 1,616,144   
Commercial Real Estate, Owner Occupied 427,734 461,272   
Commercial Real Estate, Non-Owner Occupied 618,879 610,582   
Construction and Land Development 708,289 607,798   
Multi-family 466,804 396,272   
Direct financing leases 56,153 60,134   
1-4 family real estate 382,142 368,927   
Consumer 69,438 71,080   
Total loans/leases$4,417,705$4,361,051   
Less allowance for credit losses (2) 78,894 81,831   
Net loans/leases$ 4,338,811$ 4,279,220   
      
Loan/lease mix: (1)     
Commercial and industrial loans$1,680,853$1,779,062$1,726,723$1,823,049$1,850,110
Commercial real estate loans 2,319,423 2,174,897 2,107,629 1,999,715 1,869,162
Direct financing leases 55,371 59,229 66,016 73,011 79,105
Residential real estate loans 268,193 254,900 252,121 245,032 241,069
Installment and other consumer loans 86,925 87,053 91,302 102,471 99,150
Deferred loan/lease origination costs, net of fees 6,940 5,910 7,338 4,699 1,663
Total loans/leases$4,417,705$4,361,051$4,251,129$4,247,977$4,140,259
Less allowance for credit losses (2) 78,894 81,831 84,376 79,582 60,827
Net loans/leases$ 4,338,811$ 4,279,220$ 4,166,753$ 4,168,395$ 4,079,432
      
ANALYSIS OF SECURITIES PORTFOLIO     
Securities mix:     
U.S. government sponsored agency securities$14,670$14,581$15,336$18,437$17,472
Municipal securities 641,603 614,649 627,523 569,075 526,192
Residential mortgage-backed and related securities 106,139 118,051 132,842 134,147 145,672
Asset backed securities 31,778 39,815 40,683 40,665 39,797
Other securities 16,429 12,903 21,747 19,764 19,750
Total securities$810,619$799,999$838,131$782,088$748,883
Less allowance for credit losses (2) 174 174 - - -
Net securities$ 810,445$ 799,825$ 838,131$ 782,088$ 748,883
      
ANALYSIS OF DEPOSITS     
Deposit mix:     
Noninterest-bearing demand deposits$1,258,885$1,269,578$1,145,378$1,175,085$1,177,482
Interest-bearing demand deposits 2,976,696 2,916,054 2,987,469 2,938,194 2,488,755
Time deposits 452,171 445,067 460,659 499,021 560,982
Brokered deposits 1,183 1,084 5,631 59,968 122,556
Total deposits$ 4,688,935$ 4,631,782$ 4,599,137$ 4,672,268$ 4,349,775
      
ANALYSIS OF BORROWINGS     
Borrowings mix:     
Term FHLB advances$-$-$-$40,000$90,000
Overnight FHLB advances (3) 40,000 25,000 15,000 - 55,000
FRB borrowings - - - - 100,000
Other short-term borrowings 7,070 6,840 5,430 30,430 24,818
Subordinated notes 113,771 118,731 118,691 118,577 68,516
Junior subordinated debentures 38,067 38,030 37,993 37,955 37,916
Total borrowings$ 198,908$ 188,601$ 177,114$ 226,962$ 376,250
      
(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 0.26%.  
      



QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
       
  For the Quarter Ended
  June 30,March 31,December 31,September 30,June 30,
   2021  2021 2020  2020  2020 
       
  (dollars in thousands, except per share data)
       
INCOME STATEMENT      
Interest income $48,903 $47,565$49,851 $50,890 $48,650 
Interest expense  5,387  5,590 6,144  6,309  7,694 
Net interest income  43,516  41,975 43,707  44,581  40,956 
Provision for credit losses (1)  -  6,713 7,080  20,342  19,915 
Net interest income after provision for loan/lease losses $ 43,516 $ 35,262$ 36,627 $ 24,239 $ 21,041 
       
       
Trust department fees $2,848 $2,801$2,388 $2,280 $2,227 
Investment advisory and management fees  1,039  940 926  1,266  1,399 
Deposit service fees  1,492  1,408 1,875  1,403  1,286 
Gain on sales of residential real estate loans  1,184  1,337 1,462  1,370  1,196 
Gain on sales of government guaranteed portions of loans  -  - 224  -  - 
Swap fee income/capital markets revenue  9,568  13,557 21,402  26,688  19,927 
Securities gains (losses), net  (88) - 617  1,802  65 
Earnings on bank-owned life insurance  451  471 461  502  612 
Debit card fees  1,084  975 923  946  775 
Correspondent banking fees  269  314 270  220  198 
Other  1,449  1,686 1,469  1,482  941 
Total noninterest income $ 19,296 $ 23,489$ 32,017 $ 37,959 $ 28,626 
       
       
Salaries and employee benefits $23,044 $24,847$30,446 $25,999 $21,304 
Occupancy and equipment expense  3,965  4,108 4,917  3,807  3,748 
Professional and data processing fees  3,702  3,443 3,871  3,758  3,646 
Post-acquisition compensation, transition and integration costs  -  - 25  (32) 70 
Disposition costs  -  8 64  192  (83)
FDIC insurance, other insurance and regulatory fees  986  1,065 1,272  1,301  908 
Loan/lease expense  457  300 465  403  339 
Net cost of (income from) and gains/losses on operations of other real estate  (113) 39 (4) 16  (332)
Advertising and marketing  853  627 1,276  750  552 
Bank service charges  572  523 523  488  501 
Losses on liability extinguishment  -  - 1,457  1,874  429 
Correspondent banking expense  198  200 205  205  212 
Intangibles amortization  508  508 521  531  548 
Loss (gain) on sale of subsidiary  -  - (147) 305  - 
Other  1,503  1,560 1,473  1,241  1,288 
Total noninterest expense $ 35,675 $ 37,228$ 46,364 $ 40,838 $ 33,130 
       
Net income before income taxes $ 27,137 $ 21,523$ 22,280 $ 21,360 $ 16,537 
Federal and state income tax expense  4,788  3,541 4,009  4,016  2,798 
Net income $ 22,349 $ 17,982$ 18,271 $ 17,344 $ 13,739 
       
Basic EPS $1.41 $1.14$1.16 $1.10 $0.87 
Diluted EPS $1.39 $1.12$1.14 $1.09 $0.86 
       
       
Weighted average common shares outstanding  15,813,932  15,803,643 15,775,596  15,767,152  15,747,056 
Weighted average common and common equivalent shares outstanding  16,045,239  16,025,548 15,973,054  15,923,578  15,895,336 
       
(1) Includes provision for credit losses related for loans/leases totaling ($141) thousand, HTM securities totaling $0 and OBS exposures totaling $141 thousand for the six
      months ended June 30, 2021. For the three months ended March 31, 2021, provision for credit losses related for loans/leases totaled $6.0 million, HTM securities
      totaled ($9) thousand and OBS exposures totaled $729 thousand. Provision for credit losses only included provision for loans/leases for years prior to 2021.



QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
     
  For Six Months Ended
  June 30, June 30,
   2021   2020 
     
  (dollars in thousands, except per share data)
     
INCOME STATEMENT    
Interest income $96,468  $97,632 
Interest expense  10,977   18,986 
Net interest income  85,491   78,646 
Provision for credit losses (1)  6,713   28,282 
Net interest income after provision for loan/lease losses $ 78,778  $ 50,364 
     
     
Trust department fees $5,649  $4,539 
Investment advisory and management fees  1,979   3,126 
Deposit service fees  2,900   2,763 
Gain on sales of residential real estate loans  2,521   1,848 
Gain on sales of government guaranteed portions of loans  -   - 
Swap fee income/capital markets revenue  23,125   26,731 
Securities gains (losses), net  (88)  65 
Earnings on bank-owned life insurance  922   941 
Debit card fees  2,059   1,533 
Correspondent banking fees  583   413 
Other  3,135   1,863 
Total noninterest income $ 42,785  $ 43,822 
     
     
Salaries and employee benefits $47,891  $39,823 
Occupancy and equipment expense  8,073   7,780 
Professional and data processing fees  7,145   7,015 
Post-acquisition compensation, transition and integration costs  -   221 
Disposition costs  8   434 
FDIC insurance, other insurance and regulatory fees  2,051   1,591 
Loan/lease expense  757   567 
Net cost of (income from) and gains/losses on operations of other real estate  (74)  (319)
Advertising and marketing  1,480   1,234 
Bank service charges  1,095   1,005 
Losses on liability extinguishment  -   576 
Correspondent banking expense  398   428 
Intangibles amortization  1,016   1,097 
Goodwill impairment  -   500 
Other  3,063   2,585 
Total noninterest expense $ 72,903  $ 64,537 
     
Net income before income taxes $ 48,660  $ 29,649 
Federal and state income tax expense  8,329   4,682 
Net income $ 40,331  $ 24,967 
     
Basic EPS $2.55  $1.58 
Diluted EPS $2.52  $1.56 
     
     
Weighted average common shares outstanding  15,808,788   15,771,926 
Weighted average common and common equivalent shares outstanding  16,035,394   15,956,958 
     
(1) Includes provision for credit losses related for loans/leases totaling $5.9 million, HTM securities totaling ($9) thousand and OBS exposures totaling
      $871 thousand for the six months ended June 30, 2021. 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 Six Months Ended
 June 30,March 31,December 31,September 30,June 30, June 30,June 30,
  2021  2021   2020   2020 2020   2021  2020 
         
 (dollars in thousands, except per share data)
         
COMMON SHARE DATA        
Common shares outstanding 15,763,522  15,843,732 15,805,711 15,792,357 15,790,611    
Book value per common share (1)$40.00 $38.42 $37.57 $36.26 $35.21    
Tangible book value per common share (Non-GAAP) (2)$34.64 $33.06 $32.16 $30.82 $29.63    
Closing stock price$48.09 $47.22 $39.59 $27.41 $31.18    
Market capitalization$758,068 $748,141 $625,748 $432,869 $492,351    
Market price / book value 120.24%  122.90% 105.38% 75.60% 88.55%    
Market price / tangible book value 138.83%  142.83% 123.09% 88.95% 105.23%    
Earnings per common share (basic) LTM (3)$4.81 $4.27 $3.84 $3.69 $3.55    
Price earnings ratio LTM (3)10.00 x 11.06 x 10.31 x 7.43 x 8.78 x    
TCE / TA (Non-GAAP) (4) 9.55%  9.42% 9.08% 8.42% 8.48%    
         
         
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY    
Beginning balance$608,719 $593,793 $572,613 $556,020 $539,139    
Cumulative effect from the adoption of ASU 2016-13 "CECL" -  (937)- - -    
Net income 22,349  17,982 18,271 17,344 13,739    
Other comprehensive income (loss), net of tax 4,179  (1,751)3,157 (614)3,622    
Common stock cash dividends declared (951) (949)(947)(945)(945)   
Repurchase and cancellation of 100,000 shares of common stock as a result of a share repurchase program (4,800) - - - -    
Other (5) 980  581 699 808 465    
Ending balance$ 630,476 $ 608,719 $ 593,793 $ 572,613 $ 556,020    
         
         
REGULATORY CAPITAL RATIOS (6):        
Total risk-based capital ratio 14.77%  14.85% 14.95% 14.93% 13.71%    
Tier 1 risk-based capital ratio 11.31%  11.31% 11.34% 11.25% 11.07%    
Tier 1 leverage capital ratio 10.29%  10.10% 9.49% 9.21% 8.91%    
Common equity tier 1 ratio 10.57%  10.55% 10.55% 10.44% 10.25%    
         
         
KEY PERFORMANCE RATIOS AND OTHER METRICS         
Return on average assets (annualized) 1.56%  1.27% 1.25% 1.19% 0.95%   1.41%  0.93% 
Return on average total equity (annualized) 14.33%  11.91% 12.43% 12.06% 9.88%   13.14%  9.30% 
Net interest margin 3.28%  3.26% 3.25% 3.36% 3.14%   3.27%  3.26% 
Net interest margin (TEY) (Non-GAAP)(7) 3.46%  3.43% 3.45% 3.51% 3.27%   3.45%  3.40% 
Efficiency ratio (Non-GAAP) (8) 56.80%  56.87% 61.23% 49.48% 47.61%   56.83%  52.70% 
Gross loans and leases / total assets (9) 76.10%  77.25% 74.81% 72.43% 74.01%   76.10%  74.01% 
Gross loans and leases / total deposits (9) 94.22%  94.15% 92.43% 90.92% 95.18%   94.22%  95.18% 
Effective tax rate 17.64%  16.45% 17.99% 18.80% 16.92%   17.12%  15.79% 
Full-time equivalent employees (10) 725  720 714 687 712   725  712 
         
         
AVERAGE BALANCES         
Assets$5,739,067 $5,668,850 $5,842,299 $5,820,555 $5,800,164  $5,704,151 $5,374,224 
Loans/leases 4,412,322  4,271,782 4,250,951 4,185,275 3,999,523   4,342,440  3,842,967 
Deposits 4,709,732  4,628,889 4,742,602 4,726,881 4,732,626   4,669,533  4,343,653 
Total stockholders' equity 624,000  604,012 588,042 575,061 556,047   614,061  536,775 
         
(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) Excludes assets held for sale as of June 30, 2020.        
(10) Growth in full-time equivalents from September 30, 2020 to December 31, 2020 due to the addition of new positions created to build scale. Decrease from June 30, 2020 to
       September 30, 2020 due to sale of Bates Companies.       
         



QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
            
ANALYSIS OF NET INTEREST INCOME AND MARGIN           
            
 For the Quarter Ended
 June 30, 2021 March 31, 2021 June 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$1,817$10.06% $1,847$10.05% $865$10.46%
Interest-bearing deposits at financial institutions 88,396 350.16%  116,446 370.13%  533,483 1350.10%
Securities (1) 798,732 7,2943.66%  810,059 7,0503.48%  697,559 6,5363.77%
Restricted investment securities 19,614 2384.79%  18,064 2194.84%  21,234 2885.46%
Loans (1) 4,412,322 43,7763.98%  4,271,782 42,5254.04%  3,999,522 43,4174.37%
Total earning assets (1)$5,320,881$51,3443.87% $5,218,198$49,8323.86% $5,252,663$50,3773.86%
            
Interest-bearing deposits$2,978,382$2,0500.28% $2,981,306$1,9860.27% $2,840,860$2,4290.34%
Time deposits 440,599 1,1841.08%  448,035 1,4411.30%  809,233 3,3371.66%
Short-term borrowings 10,883 10.05%  7,141 10.07%  25,064 220.35%
Federal Home Loan Bank advances 21,802 150.28%  13,078 90.28%  95,616 3471.46%
Subordinated debentures 115,339 1,5705.45%  118,706 1,5945.37%  68,480 9945.84%
Junior subordinated debentures 38,044 5645.86%  38,007 5595.88%  37,891 5726.07%
Total interest-bearing liabilities$3,605,049$5,3840.60% $3,606,273$5,5900.63% $3,877,144$7,7010.80%
            
Net interest income (1) $45,960   $44,242   $42,676 
Net interest margin (2)  3.28%   3.26%   3.14%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.46%   3.43%   3.27%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) 3.44%   3.40%   3.21%
            
            
            
 For the Six Months Ended    
 June 30, 2021 June 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$1,830$10.05% $3,095$181.17%    
Interest-bearing deposits at financial institutions 102,343 710.14%  331,048 4950.30%    
Securities (1) 804,364 14,3443.57%  658,433 12,6163.85%    
Restricted investment securities 18,843 4564.81%  21,300 5465.15%    
Loans (1) 4,342,440 86,2994.01%  3,842,966 87,4744.58%    
Total earning assets (1)$5,269,820$101,1713.87% $4,856,842$101,1494.19%    
            
Interest-bearing deposits$2,979,835$4,0360.27% $2,610,248$7,7560.60%    
Time deposits 444,297 2,6251.19%  797,184 7,2161.82%    
Short-term borrowings 9,021 30.06%  22,190 860.78%    
Federal Home Loan Bank advances 17,464 250.28%  103,512 7961.55%    
Subordinated debentures 117,014 3,1645.41%  68,449 1,9885.84%    
Junior subordinated debentures 38,026 1,1255.87%  37,872 1,1446.07%    
Total interest-bearing liabilities$3,605,657$10,9780.61% $3,639,455$18,9861.05%    
            
Net interest income (1) $90,193   $82,163     
Net interest margin (2)  3.27%   3.26%    
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)  3.45%   3.40%    
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) 3.42%   3.35%    
            
(1) Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% tax rate. 
(2) See "Select Financial Data - Subsidiaries" for a breakdown of amortization/accretion included in net interest margin for each period presented.    
(3) TEY : Tax equivalent yield. See GAAP to Non-GAAP reconciliations.         
            



QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
      
 As of
 June 30,March 31,December 31,September 30,June 30,
  2021  2021  2020  2020  2020 
      
 (dollars in thousands, except per share data)
      
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES     
Beginning balance$81,831 $84,376 $79,582 $60,827 $42,233 
Adoption of ASU 2016-13 "CECL" - Day 1 adjustment -  (8,102) -  -  - 
Provision charged to expense (141) 5,993  7,080  20,342  19,915 
Loans/leases charged off (3,674) (713) (2,779) (1,819) (1,450)
Recoveries on loans/leases previously charged off 878  277  493  232  129 
Ending balance$ 78,894 $ 81,831 $ 84,376 $ 79,582 $ 60,827 
      
      
NONPERFORMING ASSETS      
Nonaccrual loans/leases$8,230 $13,863 $13,940 $17,597 $12,099 
Accruing loans/leases past due 90 days or more 57  -  3  86  99 
Total nonperforming loans/leases 8,287  13,863  13,943  17,683  12,198 
Other real estate owned 1,820  173  20  125  157 
Other repossessed assets -  50  135  110  25 
Total nonperforming assets$ 10,107 $ 14,086 $ 14,098 $ 17,918 $ 12,380 
      
      
ASSET QUALITY RATIOS     
Nonperforming assets / total assets (1) 0.17% 0.25% 0.25% 0.31% 0.22%
ACL for loans and leases / total loans/leases (2) 1.79% 1.88% 1.98% 1.87% 1.47%
ACL for loans and leases / nonperforming loans/leases (2) 952.02% 590.28% 605.15% 450.05% 498.66%
Net charge-offs as a % of average loans/leases 0.06% 0.01% 0.05% 0.04% 0.03%
      
      
      
INTERNALLY ASSIGNED RISK RATING (3)     
Special mention (rating 6)$51,613 $53,466 $71,482 $79,587 $104,608 
Substandard (rating 7) 79,719  84,982  66,081  70,409  39,855 
Doubtful (rating 8) -  -  -  -  - 
 $131,332 $138,448 $137,563 $149,996 $144,463 
      
Criticized loans (4)$131,332 $138,448 $137,563 $149,996 $144,463 
Classified loans (5) 79,719  84,982  66,081  70,409  39,855 
      
Criticized loans as a % of total loans/leases 2.97% 3.17% 3.24% 3.53% 3.49%
Classified loans as a % of total loans/leases 1.80% 1.95% 1.55% 1.66% 0.96%
      
      
(1) Excludes assets held for sale as of June 30, 2020.     
(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) Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass (Rating 2) for the government guaranteed portion.
(4) Criticized loans are defined as C&I and CRE loans with internally assigned risk ratings of 6, 7, or 8, regardless of performance.
(5) Classified loans are defined as C&I and CRE loans with internally assigned risk ratings of 7 or 8, regardless of performance.



 QCR Holdings, Inc.
 Consolidated Financial Highlights
 (Unaudited)
            
   For the Quarter EndedFor the Six Months Ended
   June 30, March 31, June 30, June 30, June 30,
 SELECT FINANCIAL DATA - SUBSIDIARIES  2021   2021   2020   2021   2020 
   (dollars in thousands)
            
 TOTAL ASSETS          
 Quad City Bank and Trust (1) $2,059,634  $2,101,634  $1,984,245     
 m2 Equipment Finance, LLC  255,338   245,842   241,114     
 Cedar Rapids Bank and Trust  1,913,761   1,847,070   2,021,043     
 Community State Bank - Ankeny  1,079,929   1,041,861   903,648     
 Springfield First Community Bank  850,067   818,605   745,474     
            
 TOTAL DEPOSITS          
 Quad City Bank and Trust (1) $1,810,772  $1,841,518  $1,707,970     
 Cedar Rapids Bank and Trust  1,395,721   1,362,927   1,351,784     
 Community State Bank - Ankeny  938,428   912,419   778,499     
 Springfield First Community Bank  608,676   602,274   564,710     
            
 TOTAL LOANS & LEASES          
 Quad City Bank and Trust (1) $1,577,681  $1,568,131  $1,485,971     
 m2 Equipment Finance, LLC  258,520   249,478   239,351     
 Cedar Rapids Bank and Trust  1,360,202   1,382,336   1,380,672     
 Community State Bank - Ankeny  786,208   743,892   671,772     
 Springfield First Community Bank  693,614   666,692   601,843     
            
 TOTAL LOANS & LEASES / TOTAL DEPOSITS          
 Quad City Bank and Trust (1)  87%  85%  87%    
 Cedar Rapids Bank and Trust  97%  101%  102%    
 Community State Bank - Ankeny  84%  82%  86%    
 Springfield First Community Bank  114%  111%  107%    
            
            
 TOTAL LOANS & LEASES / TOTAL ASSETS          
 Quad City Bank and Trust (1)  77%  75%  75%    
 Cedar Rapids Bank and Trust  71%  75%  68%    
 Community State Bank - Ankeny  73%  71%  74%    
 Springfield First Community Bank  82%  81%  81%    
            
 ACL ON LOANS/LEASES AS A PERCENTAGE OF LOANS/LEASES          
 Quad City Bank and Trust (1)  1.91%  1.98%  1.51%    
 m2 Equipment Finance, LLC  3.61%  3.73%  1.99%    
 Cedar Rapids Bank and Trust (2)  1.92%  2.05%  1.62%    
 Community State Bank - Ankeny (2)  1.69%  1.74%  1.56%    
 Springfield First Community Bank (2)  1.35%  1.43%  0.94%    
            
 RETURN ON AVERAGE ASSETS           
 Quad City Bank and Trust (1)  1.64%  1.35%  0.68%  1.50%  0.95%
 Cedar Rapids Bank and Trust  2.39%  2.45%  2.36%  2.42%  2.01%
 Community State Bank - Ankeny  1.16%  0.81%  0.25%  0.99%  0.37%
 Springfield First Community Bank  1.77%  1.16%  1.04%  1.47%  1.16%
            
 NET INTEREST MARGIN PERCENTAGE (3)          
 Quad City Bank and Trust (1)  3.30%  3.20%  2.88%  3.25%  3.22%
 Cedar Rapids Bank and Trust (4)  3.60%  3.55%  3.37%  3.58%  3.40%
 Community State Bank - Ankeny (5)  3.66%  3.70%  3.77%  3.68%  3.84%
 Springfield First Community Bank (6)  3.54%  3.55%  3.88%  3.54%  3.85%
            
 ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET        
 INTEREST MARGIN, NET          
 Cedar Rapids Bank and Trust $92  $13  $62  $105  $111 
 Community State Bank - Ankeny  68   317   72   385   136 
 Springfield First Community Bank  168   211   641   379   1,193 
 QCR Holdings, Inc. (7)  (37)  (37)  (39)  (74)  (79)
            
(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 3.67% for the quarter ended June 30, 2021, 3.55% for the quarter ended March 31, 2021 and 3.71% for the  
 quarter ended June 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 3.63% for the quarter ended June 30, 2021, 3.54% for the quarter ended March 31, 2021 and 3.35% for the  
 quarter ended June 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 3.50% for the quarter ended June 30, 2021, 3.49% for the quarter ended March 31, 2021 and 4.29% for the  
 quarter ended June 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
  June 30, March 31, December 31, September 30, June 30,
GAAP TO NON-GAAP RECONCILIATIONS  2021   2021   2020   2020   2020 
  (dollars in thousands, except per share data)
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)          
           
Stockholders' equity (GAAP) $630,476  $608,719  $593,793  $572,613  $556,020 
Less: Intangible assets  84,431   84,939   85,447   85,968   88,120 
Tangible common equity (non-GAAP) $546,045  $523,780  $508,346  $486,645  $467,900 
           
Total assets (GAAP) $5,805,165  $5,645,147  $5,682,797  $5,864,560  $5,604,761 
Less: Intangible assets  84,431   84,939   85,447   85,968   88,120 
Tangible assets (non-GAAP) $5,720,734  $5,560,208  $5,597,350  $5,778,592  $5,516,641 
           
Tangible common equity to tangible assets ratio (non-GAAP)  9.55%  9.42%  9.08%  8.42%  8.48%
           
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO EXCLUDING PPP LOANS (1)          
           
Stockholder's equity (GAAP) $630,476  $608,719  $593,793  $572,613  $556,020 
Less: PPP loan interest income (post-tax) (2)  10,788   9,479   7,691   4,934   2,085 
Less: Intangible assets  84,431   84,939   85,447   85,968   88,120 
Tangible common equity, excluding PPP loan income (non-GAAP) $535,257  $514,301  $500,655  $481,711  $465,815 
           
Total assets (GAAP) $5,805,165  $5,645,147  $5,682,797  $5,864,560  $5,604,761 
Less: PPP loans  147,506   243,860   273,146   357,506   358,052 
Less: Intangible assets  84,431   84,939   85,447   85,968   88,120 
Tangible assets, excluding PPP loans (non-GAAP) $5,573,228  $5,316,348  $5,324,204  $5,421,086  $5,158,589 
           
Tangible common equity to tangible assets ratio, excluding PPP loans (non-GAAP)  9.60%  9.67%  9.40%  8.89%  9.03%
           
(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 Six Months Ended
  June 30, March 31, December 31, September 30, June 30, June 30, June 30,
ADJUSTED NET INCOME (1)  2021   2021   2020   2020   2020   2021   2020 
  (dollars in thousands, except per share data)
               
Net income (GAAP) $22,349  $17,982  $18,271  $17,344  $13,739  $40,331  $24,967 
               
Less non-core items (post-tax) (2):              
Income:              
Securities gains(losses), net  (69)  -   487   1,424   51  $(69) $51 
Mark to Market gains (losses) on derivatives, net  (58)  129   -   -   -   71  $- 
Loss on syndicated loan  -   -   (210)  -   -   -  $- 
Total non-core income (non-GAAP) $(127) $129  $277  $1,424  $51  $2  $51 
               
Expense:              
Losses on debt extinguishment, net $-  $-  $1,151  $1,480  $339  $-  $455 
Goodwill impairment  -   -   -   -   -   -   500 
Disposition costs  -   7   51   152   (66)  7   343 
Acquisition costs (4)  -   -   -   -   -   -   - 
Separation agreement  -   734   -   -   -   734   - 
Post-acquisition compensation, transition and integration costs  -   -   20   (25)  55   -   175 
Loss on sale of subsidiary  -   -   (102)  212   -   -   - 
Total non-core expense (non-GAAP) $-  $741  $1,119  $1,819  $329  $741  $1,472 
Adjusted net income (non-GAAP) (1) $ 22,476  $ 18,594  $ 19,113  $ 17,739  $ 14,016  $ 41,070  $ 26,388 
               
ADJUSTED EARNINGS PER COMMON SHARE (1)              
               
Adjusted net income (non-GAAP) (from above) $22,476  $18,594  $19,113  $17,739  $14,016  $41,070  $26,388 
               
Weighted average common shares outstanding  15,813,932   15,803,643   15,775,596   15,767,152   15,747,056   15,808,788   15,771,926 
Weighted average common and common equivalent shares outstanding  16,045,239   16,025,548   15,973,054   15,923,578   15,895,336   16,035,394   15,956,958 
               
Adjusted earnings per common share (non-GAAP):              
Basic $ 1.42  $ 1.18  $ 1.21  $ 1.13  $ 0.89  $ 2.60  $ 1.67 
Diluted $ 1.40  $ 1.16  $ 1.20  $ 1.11  $ 0.88  $ 2.56  $ 1.65 
               
ADJUSTED RETURN ON AVERAGE ASSETS (1)              
               
Adjusted net income (non-GAAP) (from above) $22,476  $18,594  $19,113  $17,739  $14,016  $41,070  $26,388 
               
Average Assets $5,739,067  $5,668,850  $5,842,299  $5,820,555  $5,800,164  $5,704,151  $5,374,224 
               
Adjusted return on average assets (annualized) (non-GAAP)  1.57%  1.31%  1.31%  1.22%  0.97%  1.44%  0.98%
               
NET INTEREST MARGIN (TEY) (4)              
               
Net interest income (GAAP) $43,516  $41,975  $43,707  $44,581  $40,948  $85,491  $78,646 
               
Plus: Tax equivalent adjustment (3)  2,444   2,267   2,631   1,942   1,728   4,702   3,517 
               
Net interest income - tax equivalent (Non-GAAP) $45,960  $44,242  $46,338  $46,523  $42,676  $90,193  $82,163 
               
Less: Acquisition accounting net accretion  291   504   1,077   833   736   795   1,361 
               
Adjusted net interest income $45,669  $43,738  $45,261  $45,690  $41,940  $89,398  $80,802 
               
Average earning assets $5,320,881  $5,218,198  $5,345,677  $5,278,298  $5,252,663  $5,269,820  $4,856,842 
               
Net interest margin (GAAP)  3.28%  3.26%  3.25%  3.36%  3.14%  3.27%  3.26%
Net interest margin (TEY) (Non-GAAP)  3.46%  3.43%  3.45%  3.51%  3.27%  3.45%  3.40%
Adjusted net interest margin (TEY) (Non-GAAP)  3.44%  3.40%  3.37%  3.44%  3.21%  3.42%  3.35%
               
EFFICIENCY RATIO (5)              
               
Noninterest expense (GAAP) $35,675  $37,228  $46,364  $40,838  $33,122  $72,903  $64,537 
               
Net interest income (GAAP) $43,516  $41,975  $43,707  $44,581  $40,948  $85,491  $78,646 
Noninterest income (GAAP)  19,296   23,489   32,017   37,959   28,626   42,785   43,822 
Total income $62,812  $65,464  $75,724  $82,540  $69,574  $128,276  $122,468 
               
Efficiency ratio (noninterest expense/total income) (Non-GAAP)  56.80%  56.87%  61.23%  49.48%  47.61%  56.83%  52.70%
               
ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES TO TOTAL LOANS/LEASES, EXCLUDING PPP LOANS (6)              
               
Allowance for credit losses on loans and leases $78,894  $81,831  $84,376  $79,582  $60,827  $78,894  $60,827 
               
Total loans and leases $4,417,705  $4,361,051  $4,251,129  $4,247,977  $4,140,259  $4,417,705  $4,140,259 
Less: PPP loans  147,506   243,860   273,146   357,506   358,052   147,506   358,052 
Total loans and leases, excluding PPP loans $4,270,199  $4,117,191  $3,977,983  $3,890,471  $3,782,207  $4,270,199  $3,782,207 
               
Allowance for credit losses on loans and leases to total loans and leases, excluding PPP loans  1.85%  1.99%  2.12%  2.05%  1.61%  1.85%  1.61%
               
LOAN GROWTH ANNUALIZED, EXCLUDING PPP LOANS              
Total loans and leases $4,417,705  $4,361,051  $4,251,129  $4,247,977  $4,140,259  $4,417,705  $4,140,259 
Less: PPP loans  147,506   243,860   273,146   357,506   358,052   147,506   358,052 
Total loans and leases, excluding PPP loans $4,270,199  $4,117,191  $3,977,983  $3,890,471  $3,782,207  $4,270,199  $3,782,207 
               
Loan growth annualized, excluding PPP loans  14.87%  14.00%  9.00%  11.45%  8.37%  12.90%  4.99%
               
(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.