Exhibit 99.1
| PRESS RELEASE | | FOR IMMEDIATE RELEASE |
QCR Holdings, Inc. Announces Record Net Income of $31.6 Million
for the Third Quarter of 2021
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, IL, October 27, 2021 -- 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) | | 2021 | | | 2021 | | | 2020 | |
| 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, | |
| | | 2021 | | | 2021 | | | 2020 | |
| NIM | | | 3.36 | % | | | 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 |
| | | As of | |
| | | September 30, | | | June 30, | | | March 31, | | | December 31, | | | September 30, | |
| | | 2021 | | | 2021 | | | 2021 | | | 2020 | | | 2020 | |
| | | | | | | | | | | | | | | | |
| | | (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%. |
| | | 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. |
| | | 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.
| | | 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) | | | 8.98 x | | | | 10.00 x | | | | 11.06 x | | | | 10.31 x | | | | 7.43 x | | | | | | | | | |
| 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.
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 | | | $ | 1 | | | | 0.10 | % | | $ | 1,817 | | | $ | 1 | | | | 0.06 | % | | $ | 2,205 | | | $ | 1 | | | | 0.18 | % |
| Interest-bearing deposits at financial institutions | | | 99,024 | | | | 39 | | | | 0.16 | % | | | 88,396 | | | | 35 | | | | 0.16 | % | | | 321,679 | | | | 92 | | | | 0.11 | % |
| Securities (1) | | | 799,471 | | | | 7,646 | | | | 3.82 | % | | | 798,732 | | | | 7,294 | | | | 3.66 | % | | | 749,425 | | | | 6,836 | | | | 3.66 | % |
| Restricted investment securities | | | 20,910 | | | | 262 | | | | 4.97 | % | | | 19,614 | | | | 238 | | | | 4.79 | % | | | 19,714 | | | | 249 | | | | 4.94 | % |
| Loans (1) | | | 4,529,136 | | | | 46,427 | | | | 4.07 | % | | | 4,412,322 | | | | 43,776 | | | | 3.98 | % | | | 4,185,275 | | | | 45,654 | | | | 4.34 | % |
| Total earning assets (1) | | $ | 5,451,571 | | | $ | 54,375 | | | | 3.96 | % | | $ | 5,320,881 | | | $ | 51,344 | | | | 3.87 | % | | $ | 5,278,298 | | | $ | 52,832 | | | | 3.99 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | 3,041,941 | | | $ | 2,183 | | | | 0.28 | % | | $ | 2,978,382 | | | $ | 2,050 | | | | 0.28 | % | | $ | 2,932,988 | | | $ | 2,086 | | | | 0.28 | % |
| Time deposits | | | 461,210 | | | | 1,090 | | | | 0.94 | % | | | 440,599 | | | | 1,184 | | | | 1.08 | % | | | 638,031 | | | | 2,399 | | | | 1.50 | % |
| Short-term borrowings | | | 6,858 | | | | 1 | | | | 0.10 | % | | | 10,883 | | | | 1 | | | | 0.05 | % | | | 26,996 | | | | 11 | | | | 0.17 | % |
| Federal Home Loan Bank advances | | | 54,293 | | | | 41 | | | | 0.30 | % | | | 21,802 | | | | 15 | | | | 0.28 | % | | | 57,078 | | | | 211 | | | | 1.45 | % |
| Subordinated debentures | | | 113,789 | | | | 1,554 | | | | 5.46 | % | | | 115,339 | | | | 1,570 | | | | 5.45 | % | | | 77,783 | | | | 1,031 | | | | 5.30 | % |
| Junior subordinated debentures | | | 38,084 | | | | 569 | | | | 5.84 | % | | | 38,044 | | | | 564 | | | | 5.86 | % | | | 37,936 | | | | 571 | | | | 5.89 | % |
| Total interest-bearing liabilities | | $ | 3,716,175 | | | $ | 5,438 | | | | 0.58 | % | | $ | 3,605,049 | | | $ | 5,384 | | | | 0.60 | % | | $ | 3,770,812 | | | $ | 6,309 | | | | 0.66 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 | | | $ | 1 | | | | 0.13 | % | | $ | 2,795 | | | $ | 19 | | | | 0.89 | % |
| Interest-bearing deposits at financial institutions | | | 101,225 | | | | 110 | | | | 0.15 | % | | | 327,902 | | | | 587 | | | | 0.24 | % |
| Securities (1) | | | 802,715 | | | | 21,989 | | | | 3.65 | % | | | 688,985 | | | | 19,567 | | | | 3.78 | % |
| Restricted investment securities | | | 19,540 | | | | 718 | | | | 4.85 | % | | | 20,767 | | | | 795 | | | | 5.03 | % |
| Loans (1) | | | 4,405,355 | | | | 132,728 | | | | 4.03 | % | | | 3,957,903 | | | | 133,141 | | | | 4.49 | % |
| Total earning assets (1) | | $ | 5,330,338 | | | $ | 155,546 | | | | 3.90 | % | | $ | 4,998,352 | | | $ | 154,109 | | | | 4.12 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest-bearing deposits | | $ | 3,000,766 | | | $ | 6,219 | | | | 0.28 | % | | $ | 2,718,613 | | | $ | 9,920 | | | | 0.49 | % |
| Time deposits | | | 449,996 | | | | 3,716 | | | | 1.10 | % | | | 743,746 | | | | 9,537 | | | | 1.71 | % |
| Short-term borrowings | | | 7,560 | | | | 4 | | | | 0.08 | % | | | 23,804 | | | | 81 | | | | 0.45 | % |
| Federal Home Loan Bank advances | | | 29,875 | | | | 66 | | | | 0.29 | % | | | 87,920 | | | | 1,007 | | | | 1.50 | % |
| Subordinated debentures | | | 115,927 | | | | 4,718 | | | | 5.43 | % | | | 71,582 | | | | 3,019 | | | | 5.63 | % |
| Junior subordinated debentures | | | 38,045 | | | | 1,692 | | | | 5.86 | % | | | 37,894 | | | | 1,715 | | | | 5.95 | % |
| Total interest-bearing liabilities | | $ | 3,642,169 | | | $ | 16,415 | | | | 0.60 | % | | $ | 3,683,559 | | | $ | 25,279 | | | | 0.91 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| 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.
| | | 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. |
| | | For the Quarter Ended | | | For 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. |
| | | 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%. |
| 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 | |
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| 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 | % |
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| EFFICIENCY RATIO (5) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| 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 | % |
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| ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES TO TOTAL LOANS/LEASES, EXCLUDING PPP LOANS (6) | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| 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 | % |
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| 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 subsidary 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. |
