QCRH - Earnings call transcript Q2 2020

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Operator

Greetings, and welcome to the QCR Holdings, Inc.’s Earnings Conference Call for the Second Quarter of 2020. Yesterday, after market close, the Company distributed its second quarter earnings press release. If there is anyone on the call who has not received a copy, you may access it on the Company’s website, www.qcrh.com.

In addition, the Company has included a supplemental slide presentation with COVID-19 related disclosures that you can refer to during the call.

You can also access these slides on the website. management and Helling, CFO. from Gipple, and today COO President, us are CEO; Larry Todd With call from Management the then the financial provide results, to will a and we brief will analysts. summary of up questions open

Before under some will the that remind Commission. of Securities of guidelines I forward-looking we today defined information falls and by would the begin, providing to everyone like be the management statements as Exchange

expectations these of results the any statements predictions this are during future concerning beliefs, from could those actual guidelines, made Company’s projected. call forward-looking hopes, As and materially and the of part statements differ

Additional information these is available are Company’s included in on filings, which SEC website. factors the Company’s on the

the available measures, quantitative The may to to non-GAAP as non-GAAP measures. most are on management of comparable for refer the which press be GAAP contains to GAAP well other the measures. and to as the financial reconciliation supplement, website release intended today, Additionally, discussed directly information but substitute not the

As will through August call is a accessible Company’s this replay one starting also afternoon, this this ahead. It available XXXX, to hour Helling I the will website. being will QCR approximately be Larry Holdings. the call. reminder, time, at be recorded completion XX, now for of and turn on this after over At conference Mr. Please go

Larry Helling

with start performance. additional you results. call and quarter you, will follow taking with the brief for our Thank the to our gentlemen, details time us Welcome, thank ladies financial will I operator. join today. discussion Todd and on second a regarding

have healthcare and thoughts economy, our impact as our first well As remain as continues country professionals the to impacted, crisis with who those most the our been responders. and COVID-XX

for clients to clients health everything up growth, of takes remains in performance non-interest stepping it a doing our by pre-provision, priority in support significant income, including the team expenses. management and the entire in and caused income our and each fee record top pandemic, challenges Our loan strong our unique the this and proud am we of pre-tax environment by Despite I employees careful our the adjusted strong second and communities. driven delivered net quarter our other, of

and at conditions quarter, XX% stimulus. ongoing our were significantly up our tangible the increasing results for that over building net losses believe book while and We We both income uncertainty while prudent exceptional and our by loan year-over-year. first a X% and this government our given linked-quarter the value from EPS diluted increased achieved Our by economic provision bolstering reserves XX% these basis of reserves. the time is on

the representing during granted month XX% for proactively our second total and we preserve first in of cash As received of deferral the deferrals seek loan local that payment amount program impacted of of faster markets national are less portfolio impacted unemployment believe generally was assistance. our $XXX country. pace we returned our round which discussed round additional of we that lower rates a million and and quarter, total quality our than to the resiliency bank limited requests last To-date, offering participated at relief both our loans. loan clients requests approximately and three helping a high to quarter We loan loan this our experiencing the time, at The and the loan than we than we jobs pandemic them speaks implemented liquidity. balances rest of deferrals have seeing average program of anticipate the that the that of XX% will this the

which our commercial new basis. in out program. core the growth of both number a were million core proactive of were growing deposit growth. funding clients. new obtained the over a were of so annualized client loans our helped successful in on execution successful relationships, the loans We lending group customers, added targets PPP of to in and demand able were many existing gain our our X% the commercial Additionally, significant as very communities long-term that many our full drive in were by business We while an reaching result our and to This pleased lending PPP our during we and loan outsized specialty of $XXX quarter. helped relationship fuel both finance to teams over also Improved

Additionally, from we of deposits correspondent to our network continued attract banks. significant

improved asset Our during metrics quality current credit quarter. our the remains and strong

XX% by non-performing OREO an assets property. of Importantly, we’ve through the sale reduced

experiencing in difficult credits are against book chose we loan this and million pandemic. continue we to portfolio, future to order $XX reserves this be of for issues specific It’s to currently While provision in not our meaningful to build COVID-XX. losses of degradation credit quarter impact the to related prudent ultimate to potential of predict

well capitalized help them and well weather this storm. our are to However, positioned banks

believe decision-making client to combined with is that continue uncertain during the our our times. local serve to way We best these focus, markets

at have financial and have exceptional uncertainty. supported service. economic In deep summary, stronger company our believe we emerge In credit in from assistance dealing that and seasoned teams all clients stress we that these addition, a having charters as significant experience challenges with we will with

both information over our that, pursue With further goal are acquisition. value and results. of provide turn through Todd will growth about to creation I our second We strategic and to quarter the positioned organically long-term well profitable to call

Todd Gipple

Larry. you, Thank

I growth. As items results, I our will quarter I’ll discussion those financial some review focus on where additional our loan warranted. is with second start

very for growth to core as the segments, Protection our driven As a lending Larry noted, Paycheck strong from was Program. SBA’s as well loan response by demand the quarter organic our

we worked funded over to existing quarter million XXXX Our and new lending diligently loans $XXX teams clients. PPP totaling last and both

successful targeting are that As clients time the been those desired have acquiring with results. in highly very some long we and Larry were mentioned, we for new we pleased

first demand PPP core our businesses over commercial excluding group. was driven and loans on this loan X% from of annualized on basis lease an loans. quarter growth by quarter for and both the basis increased annualized lending PPP impact specialty to lease growth strong growth finance and again Our loan our an the and our improved was half the the X% year, This of excluding second in loan

there uncertainty across loan is While clients of among organic this rebound remains regarding markets. our growth, economic our some solid the strength the

year. up able between strong with in which our strong increases very PPP this million. that increased linked-quarter to the by given deposit current basis on Total However, non-interest $XXX deposits respect X% loan we a growth again growth million particularly pipeline, With for demand X% deposits generated we were we be will excluding believe achieve to full X.X% quarter. or $XXX deposits, of bearing organic and

CDs declined time Our wholesale funding. runoff broker we and deposits strong activities the deposits $XXX balance our deposit let given sheet which has need gathering higher million cost core as reduced for by our

Reserve Over off quarter end, a program. significant of average balance these carried of reflected relationships than Federal deposits correspondent majority balances we returned. quarter even clients. deposit remainder the sourced quarter our Shortly during from temporarily of have deposits our quarter bank after of into with commercial our portion the end, The many shifted went correspondent higher EBA our end. sheet the at vast much from banking Additionally, growth Bank excess was deposits

to expect second did quarter. liquidity the quarter, what operating over we third with we again levels be For to the similar of excess

is core bank off retaining ability of team needed correspondent However, the quarter sheet balance to deposits to them to throughout the working shift growth. back these fund future some bring loan while if our

We relationships value is franchise indication and we While it fortunate this of clients. our with very margins, excess true core these really liquidity for of deposit will don’t an funding support company. continue the rely to significant have to long-term future is of pressure this feel types a the have believe our benefit positive and that growth, to is loan which a that on we to wholesale

turning Now to earnings.

interest second and by growth earning strong assets $X.X core our million linked-quarter the on X.X% funded growth grew a over our the net deposits, With or quarter in basis. income robust

net impacted quarter. liquidity significantly the we during excess However, previously margin interest mentioned carried by that the was

funding bearing our us as funds cost reduced a basis mix deposit allowing cost significantly reduce non-interest to Our decreased by of and total gathered our we deposits points. wholesale higher XX of

for rates. in sharp we to However, that excess our lower during with NIM was points. significant the partially quarter, average XX the liquidity the carried loan interest combined the decline improved funding when reported cost basis adversely offsetting by short-term And yields due impacted

to benefit excess of deposit the basis from point some we to on positioned continue impact continue most rates cost will well continue of at funds liquidity. and downward cost off continue reported reductions Therefore, as asset NIM a pressure quarter. manage and funds carry we we of static to yields the are the carried expect reprice. see are margin guiding quarter, rate levels aggressively the CDs and our to roll quarter. excess third increased higher we for have liquidity first retail Respectively, to That of we we to Excluding as and said, lower throughout from one wholesale to would the

first Now for turning record swap up first quarter, $XX.X which We at was the the in our quarter. came to the $XX.X income, from nearly non-interest sharply experienced results. million, fee income, quarter which triple million

as the clients. There swap drivers strong to three activity quarter. commercial core are exceptional performance our seeing finance are well from We for our borrowers, with this very group specialty primary as

our tax of credit quality, are remains loans variable in use the we our First, are swaps. the enabling in through products rate high fixed long-term clients to attractive lock interest for demand and lending strong, particularly space making where rates

time our able combined some pipeline low swap banks loans a types specialty expectations created interest compelling healthy, client our finance for of also our of with the the strong. makes our remains to clients. for transactions with our Second, and needs. curve remains to yield group environment, And when third, remain competitors The we very the fees at these pandemic at rate and disruption are current flat responsive

be of second of achieving that $XX level the anticipate While don’t do to approximately the same the we expect we income year. see second will the in million to we did million quarter, fees half source for $XX swap

earnings our than been million fee income, to expenses. anticipated million driven non-interest provided bonus quarter’s guidance to and additional the range financial by of last million on for and swap our $XX turning of the the benefits low-end would have Now After commission our and an adjusting salary results $X.X million, strong higher quarter, $XX.X to expense we in related expense of call. increased $XX below

Looking linked-basis. on expense be our the that between per million COVID-XX disruption continue and ahead asset of the strong we million the on uncertain is causing, focused remain quality expense We half actually improved in Despite $XX year, these a to quarter. $XX our anticipate times. to overall the second will non-interest control

of our of reserves excluding result loan this our quarter. the rest of this improved at was the losses of local with to XX in end and to an eight results March. assets be maintain basis our we liquidity to during abundant for X.XX% capital down was due asset better million XX factors prior increase NPAs-to-total assets economies while The booked potential points clients’ appear the and million Even qualitative strong the losses points non-performing to needs of of capital, this the to quarter. still of continue have improvement majority the the this total of loans impact we meet $XX basis a doing the $XXX in providing significant of quality up to respect COVID-XX provision in the million ratio end nearly improved end, pandemic. and PPP $X.X points from therefore, With quarter, future leases, much Our basis quarter-over-quarter provision loans driving The quarter and heavily for levels to than pandemic. from are nation, we the of level

PPP common the the tangible to would improved of to X.XX% the as impact end equity X.XX% of if to you dilutive assets Our at tangible March have ratio compared exclude loans.

pre-tax pre-provision growing well to and power fund are reserves we earnings significant aggressively Our capital. still while remains and overall positioned

the to higher reinforcing Larry revenue. a the resulting basis quarter by of and tax what Our wrap taxable proportion rate at due manage a noted to ability economic challenges in effective to earlier I’d by came the the my comments tax through like was rate our up linked-quarter pandemic. to on lower earnings for created XX.X%. COVID-XX about exempt higher The

Operator, up for forward to are weather passes takes the we we your crisis this job our continue we are even day we the and With each I emerge an growth get will when entire for our first fortunate questions. shareholder call when and positioned value let’s our believe open clients to it it our organization, great our and crisis stronger are We doing that, question. does, to helping ready company creation long-term strategies. people and look well for communities know all done. what we have this to

Operator

first [Operator Please go Jeff from question Instructions] Davidson. D.A. the ahead. And Rulis come will with

Jeff Rulis

Thanks. Good morning, Larry and Todd.

Larry Helling

Jeff. morning, Good

Todd Gipple

Jeff. Hey,

Jeff Rulis

slide the the deck there. detail and Appreciate

comment of you’ve round seek you deadline? reached think Slide kind of been Or a additional of talked - that think extend a entire have of second about over I just about, or think X, mean, expecting that’s that an deferrals your interesting you than approaching to What have deferral deadlines? have deferrals. stock, still think, mixing less I XX% first through round sort of with, the guess, I round? five I percent the I I some Larry, percentage still the assistance.

Larry Helling

program. quarter deferral to little Jeff. a - We We at just beginning our last of the have right started would let structural the be – background, me give

essence, into are say, of means, roughly opportunity being People for we to take in through. second payments weeks the four scheduled we the people XX% now. haven’t that their deferral. regular a are I’d So, way three

we will go than that credit discussions second that that with for will we so, happen, officers of our had the And landed up, what will total think less yesterday basically ask deferral a dollars talk know to XX% a deferral. as receive think of about or second of we’ve kind number we in but all we

Jeff Rulis

it. Got

for Thanks. and to steady the $XX now? think Or XQ, bit helpful. of that need That’s adjust quarter Okay. third swap is $XX And million heavier XQ? that million, well, outlook a on you is then, to in pretty

Larry Helling

fairly quarters. start let I’ll Yes, fourth we I’d Todd for it follow-up. third this and say, stays point, – at if steady and the I’ll

Jeff Rulis

Okay.

Todd Gipple

in Yes, quarter Jeff, here - to an had we a quarter million. at we at had one in the first XX close QX, strong Obviously, exceptional around $X million.

for more third quarters half XX and little the down roughly, bit of fourth the middle. more We and first think be year. a little So, the balanced will the

So, maybe closer to each. XX

Jeff Rulis

on year? maybe million how variable get for swap Okay. there balance I am trying assume component more swap for And in – I $XX I – Todd, of about just expenses normalized income the some won’t approach I but XXXX, million and the are we I that and just the sense year if perhaps variable and $XX if that. comments to is range appreciate the expense guidance a for a ask you you longer-term to the and to component control, next of level

Todd Gipple

question, Sure. Jeff. Great

results. guidance So actually would that embedded million have the in of terms $XX $XX swaps million that level to in of the commission

So no would that have in we expenses each $XX to we our X%. that $XX million really is within When $XX at guidance range It’s quite goal are XXXX, numbers. clear think land look hope made those into to you creep that quarter, I we baked to more expect to than million-ish stated million. it

be growth. out is So, the if in to modeling into expectation or really are you expense looking less of terms our at that’s X% XXXX,

Jeff Rulis

Okay.

swap pretty considerable Given that number. it’s a –

you comp? come the were that tied if you can range guess, such I Is to for a know would – don’t it’s you a that, maybe seems here, – tell, fee the on cost kind to down approach swap think, sorry that income just number that variable you quite do any if I It a then to if wide could pretty early there side. more but if asserted component there? formulaic impact component XXXX. even is specifically, like side that’s a I of me you considerable If bit I entering guess, there of mean, offer

Todd Gipple

incentive to base significant Well, always our invariable. I been we a had hard it’s But amount understand the model little of way. Jeff and compensation, that you have it’s a convoluted, for

pulling in related And incentives to what growth be less model next it’s you your to back X% than something less likely plug then so, little that, swaps. this swaps, into we of are bit be commissions likely much we’d would were because, on course, year for going guidance than and if do that for to year that

best creep you That’s model X% our a XXXX honestly, for and on way a taking the expenses. guidance to in on model that. would think, thing the look best at probably do based to dropping I your be

Jeff Rulis

Thanks. Okay. Fair enough.

Operator

next question come KBW. Damon DelMonte ahead. with from will The Please go

Damon DelMonte

today? How doing are guys. you morning good Hey,

Larry Helling

Good Damon. so far,

Todd Gipple

Good morning. Damon.

Damon DelMonte

hear. to to Good Good hear.

very to, these after So, feel prudent just build, and pretty as reserve Could little based discussions first level your on give this how during build? sizable seeing with you quarter’s reserve you officers, aggressive your loan question, perspective are times. about a what you throughout your

Larry Helling

we year. have to this the quarter this know our to in remainder regard question, it’s build, we that we’ve number to reserve what similar see likely did today. built the we that got upon a Damon. we’ll COVID good reserving that, After of based With for Yes, would factor continue reserve to what to risk the quantified elevated hope so

Damon DelMonte

Got it.

Okay.

your So, Todd, did cut answer? I

Larry Helling

go No, ahead.

Damon DelMonte

Okay. Alright.

to something sense and you that this similar going continue are to elevated So, something to levels reserves? just build or in the

Larry Helling

up, You asking going be to When it of what will see will think quarter end gets quarter. or deferrals. relatively wrapped know round I next in two lot to lot what hope be quarters. see, the me second of we what determined are to at this where number project so we But we more to a this that maybe the we a expect of should is on forward similar we are the by in the

Damon DelMonte

Got it.

And Okay. relationships. was I like PPP that, That’s helpful. to new then, mentioned had you the sounded think growth it customer it you some Thank guys you. and tied

it. So, just to want understand

good PPP new loan? subsequent know are over them that that business to the their and – to relationship all a turned that some brought a that or saying I So, they on able you PPP Are actually side. accommodate non-customers you have you new targeted into

Larry Helling

Many be of had kind those had credit correct, or But in going of about we That’d Damon. other so of relationships. they loans level they deposit or are high are relationships funded. cases commercial those to that be also full XXX relationships. We and many new lines building things

So us indicated the loan for we it. also loans moving came isn’t to those X% of that new that is year. growth, helped PPP get brought probably additional But we funding sustainable that clients the rest with we over which core over, were those as

Damon DelMonte

it. Got

what on may Okay. Could And on just you tax Todd, I rate? made rate, were That’s missed guess, saying just comment the helpful. that. I but tax you a repeat lastly, then, have the go-forward you

Todd Gipple

rate the strong in XX% favorable The and income the elevated of non-interest here that taxes. QX Sure. of was close because benefit to tax obviously dilutes

So, going XX forward, to versus rate to XX that’s the closer likely to settle down in XX QX.

Damon DelMonte

it. Got

Okay. That’s all I nice and very you much had. Thank quarter.

Larry Helling

Damon. Thanks,

Todd Gipple

Okay, thanks.

Operator

from Race will The go Piper Nathan come Please Sandler. next with question ahead.

Nathan Race

Hi morning. guys. Good

Larry Helling

Good morning, Nate.

Todd Gipple

Nate. morning, Good

Nathan Race

what Going back annually this to were terms the business can anywhere which think of swap you guys in guys you revenue to discussion, think suggested kind I be year, of earlier XXXX. between XX is XX I for this suggesting the contribution,

So, both year. and tracking well at obviously, guys you this are

So, you opportunities just credit this can what guys component the finance. know be in tax I that curious that past what guys segment. base. are that Bet to this changes seeing to spoken have you guys you within or good type

So just some forward. going lines those along curious thoughts to get

Larry Helling

has these is the There doing we’ve outlined Right. the commercial kinds of in I to what interest for finance our rate environment mean, specialty transactions. on the - been marketplace of Nate, in is really we’ve really both The ideal group. doing been and kind receptive comments.

some our So to very our people with of that’s from to been then been quickly. disruption competitors home work And us. respond we’ve able helped ability of some other in because that working around has and there

relative unique at a was to these get income it swap environment certainly So, levels.

XXXX. for given in about to we sure. at what next then we’ll two not as run quarters are history some next going expect But to elevated for And compared next would for yet. indicated, the have we couple our the quarters levels in we So do guidance give we year to thoughts

Nathan Race

a terms I Okay. reserve curious nicely Great. Obviously, in going back from to Appreciate to management non-performers down of side have just criticized just the first be guys to in that. more seen than in early, the am real And guys what of quarter, loan be what then, modifications coming now XX% discussion. you just round. expecting was benign saw cloud came migration, the given you

lines thoughts some about So to just curious forward, kind reserve those well. along of the going we as level as get think

Larry Helling

assets migration that the to not fair a criticized, benign. them quarter. many in particularly The we’re change of turning also negligible, during classified, ways migrate are did was movement closely. assets sub-standard watching no just almost Right. long But away amount The non-performing yet. pretty our loans We because was sector from of certainly, hotel into

Nathan Race

And just the the the have more recent levels up guys historical then, or those of occupancy of improvements, on second past course just year you versus kind book, kind over kind Great. Management’s of have hotel seen trended of quarter? what Okay. within to the rates two? where stand curious

Larry Helling

it’s ago come in to XX% off the bottom XX of the where X% were months rates last days Right, three occupancy. of

Now travels XX%. until it’s coming to some beyond to get the or we to it’s far be difficult this number. XX%-ish so can But And in that environment. think going back, I business of back, consumer comes climb probably XX% travel to because

most cost of so, start to XX% and be these hotel their debt able approaching service. provide to And to cover need

Nathan Race

on are that kind any quarter, priorities I and think on Got then tapping I appreciate of in it. thoughts any deployment but just And there just this the just color. buybacks on Okay. going capital. just lastly capital at forward updated don’t that any thoughts point?

Todd Gipple

earnings close to roughly million. Sure, basis points did XX capital through of Nate. We TCE of $XX built

As cost modest that’s you TCE only quarter. basis on to each points dividend very two we know, going about have amount, us

So, TCE risk capital making to through and our provisions. while outsize continue based build to total some earnings even expectation is

bit, loans. points that in real TCE. The eight course of TCE dilution reported a very from PPP to was actually that. feel added about So, AOCI good increased basis the

out the back those X%. are loans, equation, PPP ex of over we So, taken

Nathan Race

had appreciate done guys Okay. taking great the and I you quarter. questions for a

Todd Gipple

Thanks, Nate.

Operator

Lisle with go [Operator Instructions] Janney The Evan Montgomery from next Please come ahead. will question Scott.

Evan Lisle

and a nice Evan. is Martin Brian Hey am quarter. on for I guys. Yes. This

Larry Helling

Thanks.

Todd Gipple

Thanks, Evan.

Evan Lisle

questions. Just couple quick

back deferral front. to Just the looking

looking the at round the some then You requests? be on just I that this slides at second that I’d deferral just deferrals, and curious in just great But looking for round of guys of call. whom second color gave kind

Larry Helling

Right.

in As probably we hotel right that asking challenged the the the ones then, deferrals things probably appears kind earlier, of space. most through It most is that of that And a are those the indicated entertainment which industry, segment now. not that but be venues probably, kind our in midway we just would portion for process certainly maybe is of business, big space. entertainment will second

Evan Lisle

Okay. Awesome. in Thank great you. – this quarter are growth seeing would conditions, And on be then on, I just what on market obviously your you sticking gave an COVID awesome. just and with healthy that guys geographic you just loan update footprint and the curious have guys trends color you with gave COVID, you some just am trend.

Larry Helling

to start, area. let I finish. We’ve rather been the Todd, markets and be in than I’ll think Yes, you mid-sized fortunate, big metropolitan

So, I easier been pandemic manage. think have of to the effects the

about days at The lower levels. in dial we the was one and been unemployment ten XX% much certainly that’s been have I so, being or national of last ago saw over. thing number And instead X%

us And far. performance loan a our really on a from lot so, helped portfolio so that’s

Todd Gipple

Iowa Yes, Illinois quad in entire operation of in the are Evan, of the much total that, of are fortunate State and XXX then just of of on really in bit the have Iowa in we so to course, perspectives of to tag put just State to state. cities. little But and Missouri our hospitalizations the to

is second states the seeing for nearly more wave why some country deferrals are the a the of seeing is clients of quickly So, much our of are our we the modest. in here. that expectation more second many muted of recovering the round why and are It’s been part severity large fairly not

good gave you the request we maybe entertainment to to venues, deferral we think color on where expect be from. muted. a few pretty round of But and second expect restaurants some absent those I it Larry do hotels, come

Evan Lisle

rate if does helps. Okay. year thing Awesome. then, this staying environment, do how this is, helpful. on for in Very we weigh just me the out? look in? That into that How current you you touched margin last see from And playing that XXXX,

Todd Gipple

Evan, that’s tough question. a

mix expect got guided XXXX, been go we of deposit CDs interest-bearing working on we see some will will tailwinds quarter. continue For priced tell non-interest to the put little hard course, Again, be now, but that really a and repricing. we’ve bit only the this well I right margin and in we said, and Really, of rollout little wholesale next put to I continue pressuring some long-term liquidity. bit bit as bodes growth bit work. improvement left to continues liquidity are for more deposit static. It’s future. to little some that to what great our I’ve have to and We you to we little form to low the of And loan expect work of as we a more to and believe of of shed room we and yields. to headwind would grow bearing Larry

you floating XX basis at floating hit nearly LIBOR the amount a but We loans that have it’s effectively of When they’ve their our if almost fair at the rate those loan to floors, XXX, think many swaps a swap not don’t of LIBOR about have floor, points and floor. floors.

continue see some the we to to while loan some have aspects floor. going in are pressure So, we on pricing, to hit certainly may close

a looking and here get this end Probably static will time bit have we closer them, next little quarter in more are we of on to thought margin So, we this very very time as it’s environment QX. at for flat a about certainly rate this with bit in year low banks in But a and XXXX. the little yield more know very tough QX curve.

Evan Lisle

for and guys. the quarter color Yes. that’s it helpful. for And Well, that’s Right. great Yes. Thanks me.

Larry Helling

Evan. Thanks,

Todd Gipple

Evan. Thanks,

Operator

follow-up a Davidson. is The question next D.A. Please Rulis go from Jeff ahead. with

Jeff Rulis

Thanks.

circle But of the of adoption. and any the bit are if end like pandemic that CECL imagine true you quite thought view on thoughts fronts. I on, last you the back appetite or on mentioned, for closer Thanks. those the your an a on quarter I end any then, know Todd, two Just wanted was. feel get don’t what update think given year, provisioning. and level closed if gap as I this a had of you to you you the

Todd Gipple

Yes. so Jeff, glad into drop back ask those I am you questions.

talked about yes. you right, And narrowed. are CECL, gap not that have We

We have our a CECL it we right And to. has model, not now, are million as calculation expected than incurred we little that loss that’s than only narrowed CECL. a contemplating $X higher gap so adopting more

depending the up still talked we be very on provisioning but X/X think But additional is now, vast to factors. required pre-COVID specific about We of being. might XXXX the expectation on what out may this I jury of gap my has being guidance the narrowed. right be ends the is that SEC majority do, what

So one more loss we much and react model bit little of the gives like us a more more reasons precisely. quickly to – the flexibility more incurred

where that’s right respect to now. CECL with are we So,

Jeff Rulis

Todd. Thanks, Okay.

Todd Gipple

Thanks, Jeff.

Operator

like turn for and Larry Helling to this closing Ladies concludes question-and-answer our would session. over any remarks. gentlemen, conference I to the back

Larry Helling

of all everyone for a today. Thanks you remains that healthy Have day. everyone. We and hope us joining Thanks safe. great

Operator

sir. now today’s And has thank you Thank presentation. The concluded. for attending you conference

disconnect. You now may

QCR (QCRH) 28 Jul 202020 Q2 Earnings call transcript