Form 8-K - Current report

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): July 24, 2024

QCR Holdings, Inc.

(Exact Name of Registrant as Specified in Charter)

Delaware	0-22208	42-1397595
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

3551 Seventh Street, Moline, Illinois 61265

(Address of Principal Executive Offices) (Zip Code)

(309) 736-3584

(Registrant's telephone number, including area code)

N/A
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 Par Value	QCRH	The Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Item 2.02. Results of Operations and Financial Condition.

On July 24, 2024, QCR Holdings, Inc. (the “Company”) issued a press release disclosing financial results for the quarter ended June 30, 2024. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits.

99.1	Press Release dated July 24, 2024.

104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	QCR Holdings, Inc.

Date: July 24, 2024	By:	/s/ Todd A. Gipple
		Todd A. Gipple
		President and Chief Financial Officer

Exhibit 99.1

PRESS RELEASE

FOR IMMEDIATE RELEASE

QCR Holdings, Inc. Announces Net Income of $29.1 Million

for the Second Quarter of 2024

Second Quarter 2024 Highlights

Net income of $29.1 million, or $1.72 per diluted share

Net interest income up $1.5 million, or nearly 3% from the prior quarter, an 11% annualized growth rate

Adjusted NIM (TEY)(non-GAAP) expanded by 2 basis points from the prior quarter

Noninterest income up $4.0 million, or 15% from the prior quarter

Continued strong capital markets revenue of $17.8 million

Well-controlled noninterest expenses of $49.9 million, down $0.8 million, or nearly 2% from the prior quarter

Tangible book value (non-GAAP) per share growth of $1.72, or 15% annualized

Moline, IL, July 24, 2024 – QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $29.1 million and diluted earnings per share (“EPS”) of $1.72 for the second quarter of 2024, compared to net income of $26.7 million and diluted EPS of $1.58 for the first quarter of 2024.

Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the second quarter of 2024 were $29.3 million and $1.73, respectively. For the first quarter of 2024, adjusted net income (non-GAAP) was $26.9 million and adjusted diluted EPS (non-GAAP) was $1.59. For the second quarter of 2023, both net income and adjusted net income (non-GAAP) were $28.4 million, and both diluted EPS and adjusted diluted EPS (non-GAAP) were $1.69.

	For the Quarter Ended
	June 30,		March 31,		June 30,
$ in millions (except per share data)	2024		2024		2023
Net Income	$	29.1	$	26.7	$	28.4
Diluted EPS	$	1.72	$	1.58	$	1.69
Adjusted Net Income (non-GAAP)*	$	29.3	$	26.9	$	28.4
Adjusted Diluted EPS (non-GAAP)*	$	1.73	$	1.59	$	1.69

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

“We delivered outstanding second quarter results, highlighted by expanded net interest margin and growth in net interest income. We also had another quarter of strong capital markets revenue and well-controlled expenses,” said Larry J. Helling, Chief Executive Officer. “In addition, we maintained our excellent asset quality and further strengthened our capital levels.”

Net Interest Income Grew 3% and Margin Expanded

Net interest income for the second quarter of 2024 totaled $56.2 million, an increase of $1.5 million from the first quarter of 2024, driven by an expanded margin and strong loan growth. Loan discount accretion was $268 thousand during the second quarter, a decrease of $95 thousand from the prior quarter.

Net interest margin (“NIM”) was 2.82% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP) was 3.27% for the second quarter, as compared to 2.82% and 3.25% for the prior quarter, respectively. Adjusted NIM TEY (non-GAAP) of 3.26%, represented an increase of 2 basis points from 3.24% for the first quarter of 2024.

“Our adjusted NIM, on a tax equivalent yield basis, expanded by 2 basis points from the first quarter to 3.26% and was at the upper end of our guidance range,” said Todd A. Gipple, President and Chief Financial Officer. “The increase was due to a combination of higher loan yields and moderating deposit costs. Notably, the shift in our deposit composition has stabilized as our noninterest-bearing deposits remained steady combined with modest changes in our interest-bearing and core time deposits. Looking ahead, we anticipate further growth in net interest income and are guiding to a third quarter adjusted NIM TEY (non-GAAP) in a range of static to up 5 basis points.”

Strong Noninterest Income Including $17.8 Million of Capital Markets Revenue

Noninterest income for the second quarter of 2024 totaled $30.9 million, up from $26.9 million in the first quarter of 2024. The Company generated $17.8 million of capital markets revenue in the quarter, as compared to $16.5 million in the prior quarter. Wealth management revenue was $4.3 million for the quarter, a slight increase from the first quarter of 2024 and up just over 26% on an annualized basis year-to-date. Additionally, the Company realized income of $2.2 million from bank owned life insurance policy proceeds received during the second quarter of 2024.

“Our capital markets revenue was strong again in the second quarter as our low-income housing tax credit (“LIHTC”) lending and revenue from swap fees continues to benefit from the strong demand for affordable housing,” added Mr. Gipple. “Our LIHTC lending and capital markets revenue pipelines remain healthy. In addition, our wealth management business is wellpositioned for further growth as we continue to add new clients and expand geographically into our Southwest Missouri and Central Iowa markets.”

Well-Controlled Noninterest Expenses of $49.9 Million

Noninterest expense for the second quarter of 2024 totaled $49.9 million, compared to $50.7 million for the first quarter and $49.7 million for the second quarter of 2023. The linked-quarter decrease was primarily due to lower salaries and employee benefits and lower loan/lease expense, partially offset by higher professional and data processing expense. This created positive operating leverage and contributed to a 500 basis point reduction in the Company’s efficiency ratio (non-GAAP) which improved to 57% in the second quarter.

Solid Deposit Levels

During the second quarter of 2024, the Company’s total deposits decreased modestly by $42.1 million, or less than 1%, to $6.8 billion. “Year-to-date, we have grown total deposits by $250.7 million, or 7.7% on an annualized basis, reflecting our ongoing commitment to expanding our market share and establishing new relationships within the communities we serve,” added Mr. Helling.

Total uninsured and uncollateralized deposits remain very low at 18% of total deposits as of the end of the second quarter of 2024, as compared to 20% as of the end of the first quarter of 2024. The Company maintained approximately $3.1 billion of available liquidity sources as of June 30, 2024, which included $1.2 billion of immediately available liquidity.

Continued Loan Growth

During the second quarter of 2024, the Company’s total loans and leases grew $206.1 million to $6.9 billion. At quarter end, the Company held $243.2 million of LIHTC loans as loans held for sale in anticipation of the Company’s next loan securitization.

“Our year-to-date total loan growth is 9.5% annualized, which is within our annual target range of 8% to 10%. Year-to-date loan growth, net of loans identified for securitization, stands at 2.1% annualized,” added Mr. Helling. “Given our current pipeline and the ongoing strength of our markets, we are maintaining our loan growth target for the full year 2024 of 8% to 10%, prior to the loan securitizations that we have planned for the year.”

Asset Quality Remains Excellent

The Company’s nonperforming assets (“NPAs”) to total assets ratio was 0.39% on June 30, 2024, increasing modestly from 0.36% on March 31, 2024. NPAs totaled $34.5 million at the end of the second quarter of 2024, a $3.2 million increase from the prior quarter.

Notably, as a leading indicator of asset quality, the Company's total criticized loans were down by $17.1 million on a linked-quarter basis, and the ratio of criticized loans to total loans and leases as of June 30, 2024 improved to 2.41%, as compared to 2.75% as of March 31, 2024.

The Company recorded a total provision for credit losses of $5.5 million during the quarter with $4.3 million related to credit loss expense for loans and $1.2 million related to unfunded commitments. Charge-offs were down significantly in the second quarter of 2024 at $1.8 million, a decrease of $1.8 million, or 50% from the prior quarter.

The increased provision during the quarter was due to strong loan growth and the impact of declining GDP on the Company’s CECL model factors. The increased provision combined with the sharp reduction in charge-offs resulted in an allowance for credit losses to total loans held for investment that was static quarter over quarter at 1.33%.

Continued Strong Capital Levels

As of June 30, 2024, the Company’s total risk-based capital ratio increased to 14.33%, the common equity tier 1 ratio increased to 10.00% and the tangible common equity to tangible assets ratio (“TCE”) (non-GAAP) increased to 9.00%. By comparison, these ratios were 14.30%, 9.91% and 8.94%, respectively, as of March 31, 2024. The Company remains focused on growing capital and targeting TCE (non-GAAP) in the top quartile of its peer group.

The Company’s tangible book value per share (non-GAAP) increased by $1.72, or 15.3% annualized, during the second quarter of 2024. The change in accumulated other comprehensive income was negligible as of the end of the second quarter when comparing to the prior quarter of 2024. Tangible book value per share has grown by $6.66 since June 30, 2023, for an annualized growth rate of nearly 17%. The combination of strong earnings and a modest dividend primarily contributed to the improvement in tangible book value per share (non-GAAP).

Conference Call Details

The Company will host an earnings call/webcast tomorrow, July 25, 2024, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through August 1, 2024. The replay access information is 877-344-7529 (international 412-317-0088); access code 8771212. A webcast of the teleconference can be accessed on the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

About Us

QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018, and Guaranty Bank, also based in Springfield, Missouri, was acquired by the Company and merged with Springfield First Community Bank in 2022, with the combined entity operating under the Guaranty Bank name. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. Quad City Bank & Trust Company offers equipment loans and leases to businesses through its wholly owned subsidiary, m2 Equipment Finance, LLC, based in Waukesha, Wisconsin, and also provides correspondent banking services. The Company has 36 locations in Iowa, Missouri, Wisconsin and Illinois. As of June 30, 2024, the Company had $8.9 billion in assets, $6.9 billion in loans and $6.8 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

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

Contact:

Todd A. Gipple

President

Chief Financial Officer

(309) 743-7745

tgipple@qcrh.com

QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

	As of
	June 30,			March 31,			December 31,			September 30,			June 30,
	2024			2024			2023			2023			2023

	(dollars in thousands)
CONDENSED BALANCE SHEET
Cash and due from banks	$	92,173		$	80,988		$	97,123		$	104,265		$	84,084
Federal funds sold and interest-bearing deposits		102,262			77,020			140,369			80,650			175,012
Securities, net of allowance for credit losses		1,033,199			1,031,861			1,005,528			896,394			882,888
Loans receivable held for sale (1)		246,124			275,344			2,594			278,893			295,057
Loans/leases receivable held for investment		6,608,262			6,372,992			6,540,822			6,327,414			6,084,263
Allowance for credit losses		(87,706	)		(84,470	)		(87,200	)		(87,669	)		(85,797	)
Intangibles		12,441			13,131			13,821			14,537			15,228
Goodwill		139,027			139,027			139,027			139,027			139,027
Derivatives		194,354			183,888			188,978			291,295			170,294
Other assets		531,855			509,768			497,832			495,251			466,617
Total assets	$	8,871,991		$	8,599,549		$	8,538,894		$	8,540,057		$	8,226,673

Total deposits	$	6,764,667		$	6,806,775		$	6,514,005		$	6,494,852		$	6,606,720
Total borrowings		768,671			489,633			718,295			712,126			418,368
Derivatives		221,798			211,677			214,098			320,220			195,841
Other liabilities		180,536			184,122			205,900			184,476			183,055
Total stockholders' equity		936,319			907,342			886,596			828,383			822,689
Total liabilities and stockholders' equity	$	8,871,991		$	8,599,549		$	8,538,894		$	8,540,057		$	8,226,673

ANALYSIS OF LOAN PORTFOLIO
Loan/lease mix: (2)
Commercial and industrial - revolving	$	362,115		$	326,129		$	325,243		$	299,588		$	304,617
Commercial and industrial - other		1,370,561			1,374,333			1,390,068			1,381,967			1,308,853
Commercial and industrial - other - LIHTC		92,637			96,276			91,710			105,601			93,700
Total commercial and industrial		1,825,313			1,796,738			1,807,021			1,787,156			1,707,170
Commercial real estate, owner occupied		633,596			621,069			607,365			610,618			609,717
Commercial real estate, non-owner occupied		1,082,457			1,055,089			1,008,892			955,552			963,814
Construction and land development		331,454			410,918			477,424			472,695			437,682
Construction and land development - LIHTC		750,894			738,609			943,101			921,359			870,084
Multi-family		329,239			296,245			284,721			282,541			280,418
Multi-family - LIHTC		1,148,244			1,007,321			711,422			874,439			820,376
Direct financing leases		25,808			28,089			31,164			34,401			32,937
1-4 family real estate		583,542			563,358			544,971			539,931			535,405
Consumer		143,839			130,900			127,335			127,615			121,717
Total loans/leases	$	6,854,386		$	6,648,336		$	6,543,416		$	6,606,307		$	6,379,320
Less allowance for credit losses		87,706			84,470			87,200			87,669			85,797
Net loans/leases	$	6,766,680		$	6,563,866		$	6,456,216		$	6,518,638		$	6,293,523

ANALYSIS OF SECURITIES PORTFOLIO
Securities mix:
U.S. government sponsored agency securities	$	20,101		$	14,442		$	14,973		$	16,002		$	18,942
Municipal securities		885,046			884,469			853,645			764,017			743,608
Residential mortgage-backed and related securities		54,708			56,071			59,196			57,946			60,958
Asset backed securities		12,721			14,285			15,423			16,326			17,393
Other securities		38,464			40,539			41,115			43,272			43,156
Trading securities		22,362			22,258			22,368			-			-
Total securities (3)	$	1,033,402		$	1,032,064		$	1,006,720		$	897,563		$	884,057
Less allowance for credit losses		203			203			1,192			1,169			1,169
Net securities	$	1,033,199		$	1,031,861		$	1,005,528		$	896,394		$	882,888

ANALYSIS OF DEPOSITS
Deposit mix:
Noninterest-bearing demand deposits	$	956,445		$	955,167		$	1,038,689		$	1,027,791		$	1,101,605
Interest-bearing demand deposits		4,644,918			4,714,555			4,338,390			4,416,725			4,374,847
Time deposits		859,593			875,491			851,950			788,692			765,801
Brokered deposits		303,711			261,562			284,976			261,644			364,467
Total deposits	$	6,764,667		$	6,806,775		$	6,514,005		$	6,494,852		$	6,606,720

ANALYSIS OF BORROWINGS
Borrowings mix:
Term FHLB advances	$	135,000		$	135,000		$	135,000		$	135,000		$	135,000
Overnight FHLB advances		350,000			70,000			300,000			295,000			-
Other short-term borrowings		1,600			2,700			1,500			470			1,850
Subordinated notes		233,276			233,170			233,064			232,958			232,852
Junior subordinated debentures		48,795			48,763			48,731			48,698			48,666
Total borrowings	$	768,671		$	489,633		$	718,295		$	712,126		$	418,368

(1)

Loans with a fair value of $243.2 million, $274.8 million, $278.0 million and $291.0 million have been identified for securitization and are included in LHFS at June 30, 2024, March 31, 2024, September 30, 2023 and June 30, 2023 respectively.

(2)

Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.0 billion at June 30, 2024.

(3)

As of June 30, 2024, March 31, 2024 and December 31, 2023, trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company in 2023.

QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

	For the Quarter Ended
	June 30,		March 31,			December 31,			September 30,			June 30,
	2024		2024			2023			2023			2023

	(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income	$	119,746	$	115,049		$	112,248		$	108,568		$	98,377
Interest expense		63,583		60,350			56,512			53,313			45,172
Net interest income		56,163		54,699			55,736			55,255			53,205
Provision for credit losses		5,496		2,969			5,199			3,806			3,606
Net interest income after provision for credit losses	$	50,667	$	51,730		$	50,537		$	51,449		$	49,599

Trust fees	$	3,103	$	3,199		$	3,084		$	2,863		$	2,844
Investment advisory and management fees		1,214		1,101			1,052			947			986
Deposit service fees		1,986		2,022			2,008			2,107			2,034
Gains on sales of residential real estate loans, net		540		382			323			476			500
Gains on sales of government guaranteed portions of loans, net		12		24			24			-			-
Capital markets revenue		17,758		16,457			36,956			15,596			22,490
Securities gains, net		-		-			-			-			12
Earnings on bank-owned life insurance		2,964		868			832			1,807			838
Debit card fees		1,571		1,466			1,561			1,584			1,589
Correspondent banking fees		510		512			465			450			356
Loan related fee income		962		836			845			800			770
Fair value gain (loss) on derivatives and trading securities		51		(163	)		(582	)		(336	)		83
Other		218		154			1,161			299			18
Total noninterest income	$	30,889	$	26,858		$	47,729		$	26,593		$	32,520

Salaries and employee benefits	$	31,079	$	31,860		$	41,059		$	32,098		$	31,459
Occupancy and equipment expense		6,377		6,514			6,789			6,228			6,100
Professional and data processing fees		4,823		4,613			4,223			4,456			4,078
FDIC insurance, other insurance and regulatory fees		1,854		1,945			2,115			1,721			1,927
Loan/lease expense		151		378			834			826			652
Net cost of (income from) and gains/losses on operations of other real estate		28		(30	)		38			3			-
Advertising and marketing		1,565		1,483			1,641			1,429			1,735
Communication and data connectivity		318		401			449			478			471
Supplies		259		275			333			335			281
Bank service charges		622		568			761			605			621
Correspondent banking expense		363		305			300			232			221
Intangibles amortization		690		690			716			691			765
Payment card processing		706		646			836			733			542
Trust expense		379		425			413			432			337
Other		674		617			431			814			538
Total noninterest expense	$	49,888	$	50,690		$	60,938		$	51,081		$	49,727

Net income before income taxes	$	31,668	$	27,898		$	37,328		$	26,961		$	32,392
Federal and state income tax expense		2,554		1,172			4,473			1,840			3,967
Net income	$	29,114	$	26,726		$	32,855		$	25,121		$	28,425

Basic EPS	$	1.73	$	1.59		$	1.96		$	1.50		$	1.70
Diluted EPS	$	1.72	$	1.58		$	1.95		$	1.49		$	1.69

Weighted average common shares outstanding		16,814,814		16,783,348			16,734,080			16,717,303			16,701,950
Weighted average common and common equivalent shares outstanding		16,921,854		16,910,675			16,875,952			16,847,951			16,799,527

QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

	For the Six Months Ended
	June 30,			June 30,
	2024			2023

	(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income	$	234,795		$	192,594
Interest expense		123,933			82,579
Net interest income		110,862			110,015
Provision for credit losses		8,465			7,534
Net interest income after provision for credit losses	$	102,397		$	102,481

Trust fees	$	6,302		$	5,750
Investment advisory and management fees		2,315			1,865
Deposit service fees		4,008			4,062
Gains on sales of residential real estate loans, net		922			812
Gains on sales of government guaranteed portions of loans, net		36			30
Capital markets revenue		34,215			39,513
Securities losses, net		-			(451	)
Earnings on bank-owned life insurance		3,832			1,545
Debit card fees		3,037			3,055
Correspondent banking fees		1,022			747
Loan related fee income		1,798			1,421
Fair value loss on derivatives and trading securities		(112	)		(344	)
Other		372			357
Total noninterest income	$	57,747		$	58,362

Salaries and employee benefits	$	62,939		$	63,462
Occupancy and equipment expense		12,891			12,014
Professional and data processing fees		9,436			7,592
Post-acquisition compensation, transition and integration costs		-			207
FDIC insurance, other insurance and regulatory fees		3,799			3,301
Loan/lease expense		529			1,208
Net cost of (income from) and gains/losses on operations of other real estate		(2	)		(67	)
Advertising and marketing		3,048			2,972
Communication and data connectivity		719			1,136
Supplies		534			586
Bank service charges		1,190			1,226
Correspondent banking expense		668			431
Intangibles amortization		1,380			1,531
Payment card processing		1,352			1,087
Trust expense		804			551
Other		1,291			1,275
Total noninterest expense	$	100,578		$	98,512

Net income before income taxes	$	59,566		$	62,331
Federal and state income tax expense		3,726			6,749
Net income	$	55,840		$	55,582

Basic EPS	$	3.32		$	3.32
Diluted EPS	$	3.30		$	3.29

Weighted average common shares outstanding		16,799,081			16,739,120
Weighted average common and common equivalent shares outstanding		16,916,264			16,870,830

QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

	As of and for the Quarter Ended															For the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
	2024			2024			2023			2023			2023			2024			2023

	(dollars in thousands, except per share data)
COMMON SHARE DATA
Common shares outstanding		16,824,985			16,807,056			16,749,254			16,731,646			16,713,853
Book value per common share (1)	$	55.65		$	53.99		$	52.93		$	49.51		$	49.22
Tangible book value per common share (Non-GAAP) (2)	$	46.65		$	44.93		$	43.81		$	40.33		$	39.99
Closing stock price	$	60.00		$	60.74		$	58.39		$	48.52		$	41.03
Market capitalization	$	1,009,499		$	1,020,861		$	977,989		$	811,819		$	685,769
Market price / book value		107.82	%		112.51	%		100.31	%		98.00	%		83.36	%
Market price / tangible book value		128.62	%		135.18	%		133.29	%		120.30	%		102.59	%
Earnings per common share (basic) LTM (3)	$	6.78		$	6.75		$	6.78		$	6.65		$	6.89
Price earnings ratio LTM (3)		8.85 x			9.00 x			8.61 x			7.30 x			5.96 x
TCE / TA (Non-GAAP) (4)		9.00	%		8.94	%		8.75	%		8.05	%		8.28	%

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Beginning balance	$	907,342		$	886,596		$	828,383		$	822,689		$	801,494
Net income		29,114			26,726			32,855			25,121			28,425
Other comprehensive income (loss), net of tax		(368	)		(5,373	)		25,363			(19,415	)		(6,336	)
Common stock cash dividends declared		(1,008	)		(1,008	)		(1,004	)		(1,003	)		(1,003	)
Repurchase and cancellation of shares of common stock as a result of a share repurchase program		-			-			-			-			(967	)
Other (5)		1,239			401			999			991			1,076
Ending balance	$	936,319		$	907,342		$	886,596		$	828,383		$	822,689

REGULATORY CAPITAL RATIOS (6):
Total risk-based capital ratio		14.33	%		14.30	%		14.29	%		14.48	%		14.64	%
Tier 1 risk-based capital ratio		10.58	%		10.50	%		10.27	%		10.30	%		10.34	%
Tier 1 leverage capital ratio		10.41	%		10.33	%		10.03	%		9.92	%		10.06	%
Common equity tier 1 ratio		10.00	%		9.91	%		9.67	%		9.68	%		9.70	%

KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets (annualized)		1.34	%		1.25	%		1.53	%		1.21	%		1.44	%		1.30	%		1.42	%
Return on average total equity (annualized)		12.72	%		11.83	%		15.35	%		11.95	%		13.97	%		12.32	%		13.91	%
Net interest margin		2.82	%		2.82	%		2.90	%		2.89	%		2.93	%		2.82	%		3.05	%
Net interest margin (TEY) (Non-GAAP)(7)		3.27	%		3.25	%		3.32	%		3.31	%		3.29	%		3.26	%		3.40	%
Efficiency ratio (Non-GAAP) (8)		57.31	%		62.15	%		58.90	%		62.41	%		58.01	%		59.65	%		58.51	%
Gross loans/leases held for investment / total assets		74.48	%		74.11	%		76.60	%		74.09	%		73.96	%		74.48	%		77.54	%
Gross loans/leases held for investment / total deposits		97.69	%		93.63	%		100.41	%		97.42	%		92.09	%		97.69	%		96.56	%
Effective tax rate		8.06	%		4.20	%		11.98	%		6.82	%		12.25	%		6.26	%		10.83	%
Full-time equivalent employees (9)		988			986			996			987			1009			988			1009

AVERAGE BALANCES
Assets	$	8,776,002		$	8,550,855		$	8,535,732		$	8,287,813		$	7,924,597		$	8,663,429		$	7,915,763
Loans/leases		6,779,075			6,598,614			6,483,572			6,476,512			6,219,980			6,688,844			6,192,700
Deposits		6,687,188			6,595,453			6,485,154			6,342,339			6,292,481			6,641,324			6,236,374
Total stockholders' equity		921,986			903,371			852,163			837,734			816,882			912,679			805,845

(1)

Includes accumulated other comprehensive income (loss).

(2)

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

(3)

LTM : Last twelve months.

(4)

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

(5)

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

(6)

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

(7)

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

(8)

See GAAP to Non-GAAP reconciliations.

(9)

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

QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

ANALYSIS OF NET INTEREST INCOME AND MARGIN

	For the Quarter Ended
	June 30, 2024							March 31, 2024							June 30, 2023
	Average Balance		Interest Earned or Paid		Average Yield or Cost			Average Balance		Interest Earned or Paid		Average Yield or Cost			Average Balance		Interest Earned or Paid		Average Yield or Cost

	(dollars in thousands)
Fed funds sold	$	13,065	$	183		5.54	%	$	19,955	$	269		5.42	%	$	16,976	$	223		5.27	%
Interest-bearing deposits at financial institutions		80,998		1,139		5.66	%		91,557		1,200		5.27	%		90,814		1,123		4.96	%
Investment securities - taxable		377,747		4,286		4.53	%		373,540		4,261		4.55	%		342,991		3,693		4.30	%
Investment securities - nontaxable (1)		704,761		9,462		5.37	%		685,969		9,349		5.45	%		577,494		6,217		4.31	%
Restricted investment securities		43,398		869		7.92	%		38,085		674		7.00	%		35,031		506		5.71	%
Loans (1)		6,779,075		112,719		6.69	%		6,598,614		107,673		6.56	%		6,219,980		93,159		6.01	%
Total earning assets (1)	$	7,999,044	$	128,658		6.46	%	$	7,807,720	$	123,426		6.35	%	$	7,283,286	$	104,921		5.78	%

Interest-bearing deposits	$	4,649,625	$	40,924		3.54	%	$	4,529,325	$	39,072		3.47	%	$	3,965,592	$	27,227		2.75	%
Time deposits		1,091,870		12,128		4.47	%		1,107,622		12,345		4.48	%		1,190,440		11,219		3.78	%
Short-term borrowings		1,622		21		5.18	%		1,763		23		5.16	%		1,980		34		6.82	%
Federal Home Loan Bank advances		464,231		6,238		5.32	%		355,220		4,738		5.28	%		211,593		2,653		4.96	%
Subordinated debentures		233,207		3,582		6.14	%		233,101		3,480		5.97	%		232,782		3,303		5.68	%
Junior subordinated debentures		48,774		688		5.58	%		48,742		692		5.62	%		48,647		738		6.00	%
Total interest-bearing liabilities	$	6,489,329	$	63,581		3.93	%	$	6,275,773	$	60,350		3.86	%	$	5,651,034	$	45,174		3.20	%

Net interest income (1)			$	65,077						$	63,076						$	59,747
Net interest margin (2)						2.82	%						2.82	%						2.93	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)						3.27	%						3.25	%						3.29	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)						3.26	%						3.24	%						3.28	%

	For the Six Months Ended
	June 30, 2024							June 30, 2023
	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	$	16,510	$	452		5.41	%	$	18,119	$	457		5.09	%
Interest-bearing deposits at financial institutions		86,277		2,339		5.45	%		82,246		1,945		4.77	%
Investment securities - taxable		375,644		8,546		4.54	%		337,844		7,059		4.17	%
Investment securities - nontaxable (1)		695,365		18,813		5.41	%		598,244		13,009		4.35	%
Restricted investment securities		40,742		1,543		7.49	%		36,391		1,018		5.56	%
Loans (1)		6,688,844		220,392		6.63	%		6,192,700		181,707		5.92	%
Total earning assets (1)	$	7,903,382	$	252,085		6.41	%	$	7,265,544	$	205,195		5.69	%

Interest-bearing deposits	$	4,589,479	$	80,027		3.51	%	$	4,016,217	$	51,003		2.56	%
Time deposits		1,099,746		24,473		4.48	%		1,031,062		17,222		3.37	%
Short-term borrowings		1,688		44		5.19	%		4,642		132		5.75	%
Federal Home Loan Bank advances		409,725		10,977		5.30	%		253,729		6,174		4.84	%
Subordinated debentures		233,154		7,062		6.06	%		232,731		6,615		5.68	%
Junior subordinated debentures		48,758		1,381		5.60	%		48,630		1,433		5.86	%
Total interest-bearing liabilities	$	6,382,550	$	123,964		3.90	%	$	5,587,011	$	82,579		2.97	%

Net interest income (1)			$	128,121						$	122,616
Net interest margin (2)						2.82	%						3.05	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)						3.26	%						3.40	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)						3.24	%						3.38	%

(1)

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

(2)

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

(3)

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

QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

	As of
	June 30,			March 31,			December 31,			September 30,			June 30,
	2024			2024			2023			2023			2023

	(dollars in thousands, except per share data)
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES
Beginning balance	$	84,470		$	87,200		$	87,669		$	85,797		$	86,573
Change in ACL for transfer of loans to LHFS		498			(3,377	)		266			175			(2,277	)
Credit loss expense		4,343			3,736			2,519			3,260			3,313
Loans/leases charged off		(1,751	)		(3,560	)		(3,354	)		(1,816	)		(1,947	)
Recoveries on loans/leases previously charged off		146			471			100			253			135
Ending balance	$	87,706		$	84,470		$	87,200		$	87,669		$	85,797

NONPERFORMING ASSETS
Nonaccrual loans/leases	$	33,546		$	29,439		$	32,753		$	34,568		$	26,062
Accruing loans/leases past due 90 days or more		87			142			86			-			83
Total nonperforming loans/leases		33,633			29,581			32,839			34,568			26,145
Other real estate owned		369			784			1,347			120			-
Other repossessed assets		512			962			-			-			-
Total nonperforming assets	$	34,514		$	31,327		$	34,186		$	34,688		$	26,145

ASSET QUALITY RATIOS
Nonperforming assets / total assets		0.39	%		0.36	%		0.40	%		0.41	%		0.32	%
ACL for loans and leases / total loans/leases held for investment		1.33	%		1.33	%		1.33	%		1.39	%		1.41	%
ACL for loans and leases / nonperforming loans/leases		260.77	%		285.55	%		265.54	%		253.61	%		328.16	%
Net charge-offs as a % of average loans/leases		0.02	%		0.05	%		0.05	%		0.02	%		0.03	%

INTERNALLY ASSIGNED RISK RATING (1) (2)
Special mention	$	85,096		$	111,729		$	125,308		$	128,052		$	117,761
Substandard (3)		80,345			70,841			70,425			72,550			67,192
Doubtful (3)		-			-			-			-			-
Total Criticized loans (4)	$	165,441		$	182,570		$	195,733		$	200,602		$	184,953

Classified loans as a % of total loans/leases (3)		1.17	%		1.07	%		1.08	%		1.10	%		1.05	%
Total Criticized loans as a % of total loans/leases (4)		2.41	%		2.75	%		2.99	%		3.04	%		2.90	%

(1)

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

(2)

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

(3)

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

(4)

Total Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11 (6, 7, or 8 prior to January 1, 2024), regardless of performance and include loans identified as Special Mention, Substandard, or Doubtful.

QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

	For the Quarter Ended									For the Six Months Ended
	June 30,			March 31,			June 30,			June 30,			June 30,
SELECT FINANCIAL DATA - SUBSIDIARIES	2024			2024			2023			2024			2023

	(dollars in thousands)
TOTAL ASSETS
Quad City Bank and Trust (1)	$	2,559,049		$	2,618,727		$	2,611,832
m2 Equipment Finance, LLC		359,012			350,801			322,838
Cedar Rapids Bank and Trust		2,428,267			2,423,936			2,389,623
Community State Bank		1,531,109			1,445,230			1,332,966
Guaranty Bank		2,369,754			2,327,985			2,179,844

TOTAL DEPOSITS
Quad City Bank and Trust (1)	$	2,100,520		$	2,161,515		$	2,166,249
Cedar Rapids Bank and Trust		1,721,564			1,757,353			1,791,861
Community State Bank		1,188,551			1,187,926			1,073,907
Guaranty Bank		1,791,448			1,743,514			1,653,299

TOTAL LOANS & LEASES
Quad City Bank and Trust (1)	$	2,107,605		$	2,046,038		$	1,925,162
m2 Equipment Finance, LLC		363,897			354,815			328,479
Cedar Rapids Bank and Trust		1,736,438			1,680,127			1,728,280
Community State Bank		1,162,686			1,113,070			1,025,844
Guaranty Bank		1,847,658			1,809,101			1,700,034

TOTAL LOANS & LEASES / TOTAL DEPOSITS
Quad City Bank and Trust (1)		100	%		95	%		89	%
Cedar Rapids Bank and Trust		101	%		96	%		96	%
Community State Bank		98	%		94	%		96	%
Guaranty Bank		103	%		104	%		103	%

TOTAL LOANS & LEASES / TOTAL ASSETS
Quad City Bank and Trust (1)		82	%		78	%		74	%
Cedar Rapids Bank and Trust		72	%		69	%		72	%
Community State Bank		76	%		77	%		77	%
Guaranty Bank		78	%		78	%		78	%

ACL ON LOANS/LEASES AS A PERCENTAGE OF LOANS/LEASES
Quad City Bank and Trust (1)		1.43	%		1.40	%		1.44	%
m2 Equipment Finance, LLC		3.86	%		3.75	%		3.46	%
Cedar Rapids Bank and Trust		1.38	%		1.34	%		1.41	%
Community State Bank		1.08	%		1.12	%		1.27	%
Guaranty Bank		1.13	%		1.15	%		0.22	%

RETURN ON AVERAGE ASSETS
Quad City Bank and Trust (1)		0.88	%		0.79	%		0.82	%		0.84	%		1.02	%
Cedar Rapids Bank and Trust		2.94	%		3.09	%		3.52	%		3.01	%		3.30	%
Community State Bank		1.26	%		1.25	%		1.42	%		1.25	%		1.46	%
Guaranty Bank		1.42	%		0.88	%		0.97	%		1.15	%		0.99	%

NET INTEREST MARGIN PERCENTAGE (2)
Quad City Bank and Trust (1)		3.39	%		3.31	%		3.28	%		3.35	%		3.36	%
Cedar Rapids Bank and Trust		3.75	%		3.77	%		3.69	%		3.76	%		3.86	%
Community State Bank		3.72	%		3.75	%		3.90	%		3.74	%		3.94	%
Guaranty Bank (3)		2.99	%		2.98	%		3.10	%		2.99	%		3.30	%

ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET INTEREST MARGIN, NET
Cedar Rapids Bank and Trust	$	-		$	-		$	-		$	-		$	(8	)
Community State Bank		(1	)		(1	)		(1	)		(2	)		70
Guaranty Bank		301			396			168			697			965
QCR Holdings, Inc. (4)		(32	)		(32	)		(33	)		(64	)		(65	)

(1)

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

(2)

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

(3)

Guaranty Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 2.86% for the quarter ended June 30, 2024, 2.91% for the quarter ended March 31, 2024 and 3.11 for the quarter ended June 30, 2023.

(4)

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

QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

	As of
	June 30,			March 31,			December 31,			September 30,			June 30,
GAAP TO NON-GAAP RECONCILIATIONS	2024			2024			2023			2023			2023

	(dollars in thousands, except per share data)
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)

Stockholders' equity (GAAP)	$	936,319		$	907,342		$	886,596		$	828,383		$	822,689
Less: Intangible assets		151,468			152,158			152,848			153,564			154,255
Tangible common equity (non-GAAP)	$	784,851		$	755,184		$	733,748		$	674,819		$	668,434

Total assets (GAAP)	$	8,871,991		$	8,599,549		$	8,538,894		$	8,540,057		$	8,226,673
Less: Intangible assets		151,468			152,158			152,848			153,564			154,255
Tangible assets (non-GAAP)	$	8,720,523		$	8,447,391		$	8,386,046		$	8,386,493		$	8,072,418

Tangible common equity to tangible assets ratio (non-GAAP)		9.00	%		8.94	%		8.75	%		8.05	%		8.28	%

(1)

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

QCR Holding, Inc.

Consolidated Financial Highlights

(Unaudited)

GAAP TO NON-GAAP RECONCILIATIONS	For the Quarter Ended															For the Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,			June 30,			June 30,
ADJUSTED NET INCOME (1)	2024			2024			2023			2023			2023			2024			2023

	(dollars in thousands, except per share data)
Net income (GAAP)	$	29,114		$	26,726		$	32,855		$	25,121		$	28,425		$	55,840		$	55,582

Less non-core items (post-tax) (2):
Income:
Securities gains (losses), net		-			-			-			-			9			-			(356	)
Fair value gain (loss) on derivatives, net		(145	)		(144	)		(460	)		(265	)		66			(288	)		(272	)
Total non-core income (non-GAAP)	$	(145	)	$	(144	)	$	(460	)	$	(265	)	$	75		$	(288	)	$	(628	)

Expense:
Post-acquisition compensation, transition and integration costs		-			-			-			-			-			-			164
Total non-core expense (non-GAAP)	$	-		$	-		$	-		$	-		$	-		$	-		$	164

Adjusted net income (non-GAAP) (1)	$	29,259		$	26,870		$	33,315		$	25,386		$	28,350		$	56,128		$	56,374

ADJUSTED EARNINGS PER COMMON SHARE (1)

Adjusted net income (non-GAAP) (from above)	$	29,259		$	26,870		$	33,315		$	25,386		$	28,350		$	56,128		$	56,374

Weighted average common shares outstanding		16,814,814			16,783,348			16,734,080			16,717,303			16,701,950			16,799,081			16,739,120
Weighted average common and common equivalent shares outstanding		16,921,854			16,910,675			16,875,952			16,847,951			16,799,527			16,916,264			16,870,830

Adjusted earnings per common share (non-GAAP):
Basic	$	1.74		$	1.60		$	1.99		$	1.52		$	1.70		$	3.34		$	3.37
Diluted	$	1.73		$	1.59		$	1.97		$	1.51		$	1.69		$	3.32		$	3.34

ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)

Adjusted net income (non-GAAP) (from above)	$	29,259		$	26,870		$	33,315		$	25,386		$	28,350		$	56,128		$	56,374

Average Assets	$	8,776,002		$	8,550,855		$	8,535,732		$	8,287,813		$	7,924,597		$	8,663,429		$	7,915,763

Adjusted return on average assets (annualized) (non-GAAP)		1.33	%		1.26	%		1.56	%		1.23	%		1.43	%		1.30	%		1.42	%
Adjusted return on average equity (annualized) (non-GAAP)		12.69	%		11.90	%		15.64	%		12.12	%		13.88	%		12.30	%		13.99	%

NET INTEREST MARGIN (TEY) (3)

Net interest income (GAAP)	$	56,163		$	54,699		$	55,736		$	55,255		$	53,205		$	110,862		$	110,015
Plus: Tax equivalent adjustment (4)		8,914			8,377			7,954			7,771			6,542			17,259			12,601
Net interest income - tax equivalent (Non-GAAP)	$	65,077		$	63,076		$	63,690		$	63,026		$	59,747		$	128,121		$	122,616
Less: Acquisition accounting net accretion		268			363			673			539			134			631			962
Adjusted net interest income	$	64,809		$	62,713		$	63,017		$	62,487		$	59,613		$	127,490		$	121,654

Average earning assets	$	7,999,044		$	7,807,720		$	7,631,035		$	7,573,785		$	7,283,286		$	7,903,382		$	7,265,544

Net interest margin (GAAP)		2.82	%		2.82	%		2.90	%		2.89	%		2.93	%		2.82	%		3.05	%
Net interest margin (TEY) (Non-GAAP)		3.27	%		3.25	%		3.32	%		3.31	%		3.29	%		3.26	%		3.40	%
Adjusted net interest margin (TEY) (Non-GAAP)		3.26	%		3.24	%		3.29	%		3.28	%		3.28	%		3.24	%		3.38	%

EFFICIENCY RATIO (5)

Noninterest expense (GAAP)	$	49,888		$	50,690		$	60,938		$	51,081		$	49,727		$	100,578		$	98,512

Net interest income (GAAP)	$	56,163		$	54,699		$	55,736		$	55,255		$	53,205		$	110,862		$	110,015
Noninterest income (GAAP)		30,889			26,858			47,729			26,593			32,520			57,747			58,362
Total income	$	87,052		$	81,557		$	103,465		$	81,848		$	85,725		$	168,609		$	168,377

Efficiency ratio (noninterest expense/total income) (Non-GAAP)		57.31	%		62.15	%		58.90	%		62.41	%		58.01	%		59.65	%		58.51	%

(1)

Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company's management believes that these measurements are important to investors as they exclude non-core or 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, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.

(2)

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

(3)

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

(4)

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

(5)

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

Cover	Jul. 24, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 24, 2024
Entity File Number	0-22208
Entity Registrant Name	QCR Holdings, Inc.
Entity Central Index Key	0000906465
Entity Tax Identification Number	42-1397595
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	3551 Seventh Street
Entity Address, City or Town	Moline
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	61265
City Area Code	309
Local Phone Number	736-3584
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, $1.00 Par Value
Trading Symbol	QCRH
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false