QCR Holdings, Inc. Announces Net Income of $27.0 Million for the Fourth Quarter and Record Net Income of $98.9 Million for the Full Year 2021

Fourth Quarter and Full Year 2021 Highlights

· Record annual net income of $98.9 million, or $6.20 per diluted share
· Quarterly net income of $27.0 million, or $1.71 per diluted share
· Adjusted quarterly net income (non-GAAP) of $27.4 million, or $1.73 per diluted share
· Record adjusted quarterly net interest income (non-GAAP) of $49.2 million, a 6.1% annualized increase compared to the third quarter of 2021
· Net Interest Margin ("NIM") of 3.29% and Adjusted NIM (TEY)(non-GAAP) of 3.49% for the quarter
· Loan and lease growth of 12.0% (annualized) for the quarter and 16.9% for the full year, excluding SBA Paycheck Protection Program ("PPP") loans (non-GAAP)
· Annualized core deposit growth of 4.3% for the quarter and 7.2% for the full year
· Nonperforming assets improved by 60% for the quarter and 80% for the full year and now represent only 0.05% of total assets
· Allowance for credit losses ("ACL") to total loans/leases of 1.69%, excluding PPP loans (non-GAAP)

Moline, IL, January 25, 2022 -- QCR Holdings, Inc. (NASDAQ: QCRH) (the "Company") today announced net income of $27.0 million and diluted earnings per share ("EPS") of $1.71 for the fourth quarter of 2021, compared to net income of $31.6 million and diluted EPS of $1.99 for the third quarter of 2021. For the full year, the Company reported record net income of $98.9 million, or $6.20 per diluted share.

The Company reported adjusted net income (non-GAAP) of $27.4 million and adjusted diluted EPS of $1.73 for the fourth quarter of 2021, compared to adjusted net income (non-GAAP) of $31.6 million and adjusted diluted EPS of $1.99 for the third quarter of 2021. For the fourth quarter of 2020, net income and diluted EPS were $18.3 million and $1.14, respectively, and adjusted net income (non-GAAP) and adjusted diluted EPS were $19.1 million and $1.20, respectively.

For the Quarter Ended
December 31, September 30, December 31,
$ in millions (except per share data) 2021 2021 2020
Net Income $ 27.0 $ 31.6 $ 18.3
Diluted EPS $ 1.71 $ 1.99 $ 1.14
Adjusted Net Income (non-GAAP) $ 27.4 $ 31.6 $ 19.1
Adjusted Diluted EPS (non-GAAP) $ 1.73 $ 1.99 $ 1.20

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 2021 financial performance, highlighted by record net income and earnings per share," said Larry J. Helling, Chief Executive Officer. "Our strong results were driven by robust loan growth of 17% for the year as we capitalized on strengthening economic conditions in our markets as well as the value that our clients place on relationship-based community banking. Additionally, we expanded our net interest margin, produced solid fee income, carefully managed expenses and maintained excellent credit quality."

"In November, we were excited to announce the anticipated acquisition of Guaranty Federal Bancshares, Inc. which will enhance our market share in the vibrant Springfield and southwest Missouri markets. It will enable us to extend our high-performing and profitable niche business lines into those markets. We expect this transaction to close late in the first quarter or early in the second quarter and look forward to welcoming Guaranty Bank to the team."

Annualized Loan and Lease Growth of 12.0% for the Quarter and 16.9% for the Year, excluding PPP Loans (non-GAAP)

During the fourth quarter of 2021, the Company's loans and leases, excluding PPP loans (non-GAAP), increased $135.8 million to a total of $4.7 billion. Loan and lease growth, excluding PPP loans (non-GAAP) during the quarter was 12.0% on an annualized basis and was funded by core deposit growth and some excess liquidity. Core deposits (excluding brokered deposits) increased by $52.0 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 by strength in both our traditional commercial lending and leasing business and our Specialty Finance Group," added Helling. "We believe this is a testament to the underlying economic strength across our markets and our relationship-based community banking model, emphasizing the importance of strong relationships with new and existing clients. Given our current pipeline, we are targeting organic loan growth for the full year 2022 of between 8% and 10%, consistent with our long-term goals."

Record Net Interest Income of $46.5 million

Net interest income for the fourth quarter of 2021 totaled a record $46.5 million, compared to $46.2 million for the third quarter of 2021 and $43.7 million for the fourth quarter of 2020. Adjusted net interest income (non-GAAP) during the quarter was $49.2 million, an increase of $744 thousand, or 1.5%, from the prior quarter, primarily due to the strong loan/lease growth. Adjusted net interest income (non-GAAP) was $45.3 million for the fourth quarter of 2020. Acquisition-related net accretion totaled $88 thousand for the fourth quarter of 2021, down from $456 thousand in the third quarter of 2021 and down from $1.1 million for the fourth quarter of 2020.

In the fourth quarter, reported NIM was 3.29% and tax-equivalent yield basis (non-GAAP) NIM was 3.50%, compared to 3.36% and 3.56% in the prior quarter, respectively. Adjusted NIM (non-GAAP), which excludes acquisition-related net accretion, was 3.49%, compared to 3.53% in the third quarter. The slight decrease in Adjusted NIM (non-GAAP) during the quarter was primarily due to a 4 basis point decrease in the yield on earning assets (adjusted for acquisition-related net accretion, non-GAAP) driven by slightly lower loan and securities yields and some elevated excess liquidity. However, adjusted NIM benefited from a 1 basis point decline in the total cost of interest-bearing funds, mainly due to mix.

For the Quarter Ended
December 31, September 30, December 31,
2021 2021 2020
NIM 3.29 % 3.36 % 3.25 %
NIM (TEY)(non-GAAP) * 3.50 % 3.56 % 3.45 %
Adjusted NIM (TEY)(non-GAAP) * 3.49 % 3.53 % 3.37 %

* See GAAP to non-GAAP reconciliations

"We grew net interest income to record levels in the quarter, driven by our continued strong loan growth and our ability to protect and actually expand NIM in this challenging interest rate environment," said Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer. "While reported adjusted NIM declined by 4 basis points this quarter, the decline was approximately two basis points when excluding the impact of lower PPP income and elevated excess liquidity, matching our guidance for the quarter. We had elevated liquidity during much of the quarter, driven by strong seasonal deposit growth with the majority of our strong loan growth occurring in December."

2

Noninterest Income of $23.0 million

Noninterest income for the fourth quarter of 2021 totaled $23.0 million, compared to $34.7 million for the third quarter of 2021. The decrease was primarily due to an $11.9 million decrease in capital markets revenue from swap fees, down from the elevated amount in the prior quarter, which benefited from a number of swap transactions that were scheduled to close in the second quarter carrying over into the third quarter. Wealth management revenue was $3.9 million for the quarter, up 3.2% from the third quarter.

"Capital markets revenue from swap fees totaled $13.0 million for the quarter and $61.0 million for the full year," added Gipple. "Capital markets revenue from swap fees has averaged $17.0 million for the last eight quarters, which 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 $39.4 million

Noninterest expense for the fourth quarter of 2021 totaled $39.4 million, compared to $41.4 million for the third quarter of 2021 and $46.4 million for the fourth quarter of 2020. The linked-quarter decrease was primarily due to lower performance-based salary and benefits expense of $3.4 million, mainly the result of a decrease in capital markets revenue production from swap fees. Partially offsetting this decrease was a $584 thousand increase in advertising and marketing and $624 thousand in acquisition costs. Additionally, in the third quarter of 2021, the Company recorded a $1.5 million charge related to the write-down of certain fixed assets and a $1.3 million net gain on the sale of other real estate.

Asset Quality Remains Strong and NPAs Improved

Nonperforming assets ("NPAs") totaled $2.8 million at the end of the fourth quarter, a decrease of $4.1 million from the third quarter of 2021. The decrease was primarily due to the payoff of one nonaccrual loan during the quarter. The ratio of NPAs to total assets improved to 0.05% as of December 31, 2021, compared to 0.11% as of September 30, 2021, and 0.25% as of December 31, 2020. In addition, the Company's criticized loans and classified loans to total loans and leases decreased to 2.47% and 1.14%, respectively, from 2.57% and 1.29% as of September 30, 2021.

The Company recorded a $3.2 million negative provision for credit losses in the fourth quarter of 2021, primarily due to continued strong asset quality and a corresponding reduction in the qualitative factor related to the pandemic. As of December 31, 2021, the ACL on total loans/leases was 1.68%, compared to 1.75% as of September 30, 2021. Excluding PPP loans of $28 million, the ACL to total loans/leases as of December 31, 2021, was 1.69% (non-GAAP).

Continued Strong Capital Levels

As of December 31, 2021, the Company's total risk-based capital ratio was 14.92%, the common equity tier 1 ratio was 10.88% and the tangible common equity to tangible assets ratio (non-GAAP) was 9.87%. By comparison, these respective ratios were 14.64%, 10.55% and 9.54% as of September 30, 2021.

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.

3

Conference Call Details

The Company will host an earnings call/webcast tomorrow, January 26, 2022, 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 February 02, 2022. The replay access information is 877-344-7529 (international 412-317-0088); access code 2205260. 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 December 31, 2021, the Company had approximately $6.1 billion in assets, $4.7 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.

4

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 kgarrett@qcrh.com

5

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

As of
December 31, September 30, June 30, March 31, December 31,
2021 2021 2021 2021 2020
(dollars in thousands)
CONDENSED BALANCE SHEET
Cash and due from banks $ 37,490 $ 57,310 $ 55,598 $ 78,814 $ 61,329
Federal funds sold and interest-bearing deposits 87,662 70,826 88,780 55,056 95,676
Securities, net of allowance for credit losses 810,215 828,719 810,445 799,825 838,131
Net loans/leases 4,601,411 4,519,060 4,338,811 4,279,220 4,166,753
Intangibles 9,349 9,857 10,365 10,873 11,381
Goodwill 74,066 74,066 74,066 74,066 74,066
Derivatives 222,220 198,393 193,395 122,668 222,757
Other assets 253,719 256,277 255,952 246,872 234,950
Total assets $ 6,096,132 $ 6,014,508 $ 5,827,412 $ 5,667,394 $ 5,705,043
Total deposits $ 4,922,772 $ 4,871,828 $ 4,688,935 $ 4,631,782 $ 4,599,137
Total borrowings 170,805 183,514 198,908 188,601 177,114
Derivatives 225,135 201,450 196,092 125,863 229,270
Other liabilities 100,410 107,902 113,001 112,429 105,729
Total stockholders' equity 677,010 649,814 630,476 608,719 593,793
Total liabilities and stockholders' equity $ 6,096,132 $ 6,014,508 $ 5,827,412 $ 5,667,394 $ 5,705,043
ANALYSIS OF LOAN PORTFOLIO
Loan/lease mix: (1)
Commercial and industrial - revolving $ 248,483 $ 175,155 $ 182,882 $ 168,842
Commercial and industrial - other 1,346,602 1,465,580 1,505,384 1,616,144
Commercial real estate, owner occupied 421,701 434,014 427,734 461,272
Commercial real estate, non-owner occupied 646,500 644,850 618,879 610,582
Construction and land development 918,571 852,418 708,289 607,798
Multi-family 600,412 529,727 466,804 396,272
Direct financing leases 45,191 50,237 56,153 60,134
1-4 family real estate 377,361 376,067 382,142 368,927
Consumer 75,311 71,682 69,438 71,080
Total loans/leases $ 4,680,132 $ 4,599,730 $ 4,417,705 $ 4,361,051
Less allowance for credit losses (2) 78,721 80,670 78,894 81,831
Net loans/leases $ 4,601,411 $ 4,519,060 $ 4,338,811 $ 4,279,220
Loan/lease mix: (1)
Commercial and industrial loans $ 1,584,922 $ 1,634,047 $ 1,680,853 $ 1,779,062 $ 1,726,723
Commercial real estate loans 2,675,103 2,550,160 2,319,423 2,174,897 2,107,629
Direct financing leases 44,623 49,585 55,371 59,229 66,016
Residential real estate loans 275,552 270,522 268,193 254,900 252,121
Installment and other consumer loans 86,311 85,363 86,925 87,053 91,302
Deferred loan/lease origination costs, net of fees 13,621 10,053 6,940 5,910 7,338
Total loans/leases $ 4,680,132 $ 4,599,730 $ 4,417,705 $ 4,361,051 $ 4,251,129
Less allowance for credit losses (2) 78,721 80,670 78,894 81,831 84,376
Net loans/leases $ 4,601,411 $ 4,519,060 $ 4,338,811 $ 4,279,220 $ 4,166,753
ANALYSIS OF SECURITIES PORTFOLIO
Securities mix:
U.S. government sponsored agency securities $ 23,328 $ 23,689 $ 14,670 $ 14,581 $ 15,336
Municipal securities 639,799 649,486 641,603 614,649 627,523
Residential mortgage-backed and related securities 94,323 100,744 106,139 118,051 132,842
Asset backed securities 27,124 30,607 31,778 39,815 40,683
Other securities 25,839 24,367 16,429 12,903 21,747
Total securities $ 810,413 $ 828,893 $ 810,619 $ 799,999 $ 838,131
Less allowance for credit losses (2) 198 174 174 174 -
Net securities $ 810,215 $ 828,719 $ 810,445 $ 799,825 $ 838,131
ANALYSIS OF DEPOSITS
Deposit mix:
Noninterest-bearing demand deposits $ 1,268,788 $ 1,342,273 $ 1,258,885 $ 1,269,578 $ 1,145,378
Interest-bearing demand deposits 3,232,633 3,086,711 2,976,696 2,916,054 2,987,469
Time deposits 421,348 441,743 452,171 445,067 460,659
Brokered deposits 3 1,101 1,183 1,084 5,631
Total deposits $ 4,922,772 $ 4,871,828 $ 4,688,935 $ 4,631,782 $ 4,599,137
ANALYSIS OF BORROWINGS
Borrowings mix:
Term FHLB advances $ - $ - $ - $ - $ -
Overnight FHLB advances (3) 15,000 30,000 40,000 25,000 15,000
FRB borrowings - - - - -
Other short-term borrowings 3,800 1,600 7,070 6,840 5,430
Subordinated notes 113,850 113,811 113,771 118,731 118,691
Junior subordinated debentures 38,155 38,103 38,067 38,030 37,993
Total borrowings $ 170,805 $ 183,514 $ 198,908 $ 188,601 $ 177,114
(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 0.31%.

6

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

For the Quarter Ended
December 31, September 30, June 30, March 31, December 31,
2021 2021 2021 2021 2020
(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income $ 52,020 $ 51,667 $ 48,903 $ 47,565 $ 49,851
Interest expense 5,507 5,438 5,387 5,590 6,144
Net interest income 46,513 46,229 43,516 41,975 43,707
Provision for credit losses (1) (3,227 ) - - 6,713 7,080
Net interest income after provision for loan/lease losses $ 49,740 $ 46,229 $ 43,516 $ 35,262 $ 36,627
Trust department fees $ 2,843 $ 2,714 $ 2,848 $ 2,801 $ 2,388
Investment advisory and management fees 1,047 1,054 1,039 940 926
Deposit service fees 1,644 1,588 1,492 1,408 1,875
Gain on sales of residential real estate loans 922 954 1,184 1,337 1,462
Gain on sales of government guaranteed portions of loans 227 - - - 224
Swap fee income/capital markets revenue 12,982 24,885 9,568 13,557 21,402
Securities gains (losses), net - - (88 ) - 617
Earnings on bank-owned life insurance 470 446 451 471 461
Debit card fees 1,072 1,085 1,084 975 923
Correspondent banking fees 266 265 269 314 270
Other 1,512 1,661 1,449 1,686 1,469
Total noninterest income $ 22,985 $ 34,652 $ 19,296 $ 23,489 $ 32,017
Salaries and employee benefits $ 24,809 $ 28,207 $ 23,044 $ 24,847 $ 30,446
Occupancy and equipment expense 3,723 4,122 3,965 4,108 4,917
Professional and data processing fees 3,866 3,568 3,702 3,443 3,871
Acquisition costs 624 - - - -
Post-acquisition compensation, transition and integration costs - - - - 25
Disposition costs 5 - - 8 64
FDIC insurance, other insurance and regulatory fees 1,316 1,108 986 1,065 1,272
Loan/lease expense 606 308 457 300 465
Net cost of (income from) and gains/losses on operations of other real estate - (1,346 ) (113 ) 39 (4 )
Advertising and marketing 1,679 1,095 853 627 1,276
Bank service charges 553 525 572 523 523
Losses on liability extinguishment - - - - 1,457
Correspondent banking expense 200 201 198 200 205
Intangibles amortization 508 508 508 508 521
Loss (gain) on sale of subsidiary - - - - (147 )
Other 1,523 3,091 1,503 1,560 1,473
Total noninterest expense $ 39,412 $ 41,387 $ 35,675 $ 37,228 $ 46,364
Net income before income taxes $ 33,313 $ 39,494 $ 27,137 $ 21,523 $ 22,280
Federal and state income tax expense 6,304 7,929 4,788 3,541 4,009
Net income $ 27,009 $ 31,565 $ 22,349 $ 17,982 $ 18,271
Basic EPS $ 1.73 $ 2.02 $ 1.41 $ 1.14 $ 1.16
Diluted EPS $ 1.71 $ 1.99 $ 1.39 $ 1.12 $ 1.14
Weighted average common shares outstanding 15,582,276 15,635,123 15,813,932 15,803,643 15,775,596
Weighted average common and common equivalent shares outstanding 15,838,246 15,869,798 16,045,239 16,025,548 15,973,054
(1) Provision for credit losses only included provision for loans/leases for years prior to 2021.

7

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

For Year Ended
December 31, December 31,
2021 2020
(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income $ 200,155 $ 198,373
Interest expense 21,922 31,423
Net interest income 178,233 166,950
Provision for credit losses (1) 3,486 55,704
Net interest income after provision for loan/lease losses $ 174,747 $ 111,246
Trust department fees $ 11,206 $ 9,207
Investment advisory and management fees 4,080 5,318
Deposit service fees 6,132 6,041
Gain on sales of residential real estate loans 4,397 4,680
Gain on sales of government guaranteed portions of loans 227 224
Swap fee income/capital markets revenue 60,992 74,821
Securities gains (losses), net (88 ) 2,484
Earnings on bank-owned life insurance 1,838 1,904
Debit card fees 4,216 3,402
Correspondent banking fees 1,114 903
Other 6,308 4,814
Total noninterest income $ 100,422 $ 113,798
Salaries and employee benefits $ 100,907 $ 96,268
Occupancy and equipment expense 15,918 16,504
Professional and data processing fees 14,579 14,644
Acquisition costs 624 -
Post-acquisition compensation, transition and integration costs - 214
Disposition costs 13 690
FDIC insurance, other insurance and regulatory fees 4,475 4,164
Loan/lease expense 1,671 1,435
Net cost of (income from) and gains/losses on operations of other real estate (1,420 ) (307 )
Advertising and marketing 4,254 3,260
Bank service charges 2,173 2,016
Losses on liability extinguishment - 3,907
Correspondent banking expense 799 838
Intangibles amortization 2,032 2,149
Goodwill impairment - 500
Loss on sale of subsidiary - 158
Other 7,677 5,315
Total noninterest expense $ 153,702 $ 151,755
Net income before income taxes $ 121,467 $ 73,289
Federal and state income tax expense 22,562 12,707
Net income $ 98,905 $ 60,582
Basic EPS $ 6.30 $ 3.84
Diluted EPS $ 6.20 $ 3.80
Weighted average common shares outstanding 15,708,744 15,771,650
Weighted average common and common equivalent shares outstanding 15,944,708 15,952,637

(1) Provision for credit losses only included provision for loans/leases for years prior to 2021.

8

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

As of and for the Quarter Ended For the Year Ended
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
2021 2021 2021 2021 2020 2021 2020
(dollars in thousands, except per share data)
COMMON SHARE DATA
Common shares outstanding 15,613,460 15,590,428 15,763,522 15,843,732 15,805,711
Book value per common share (1) $ 43.36 $ 41.68 $ 40.00 $ 38.42 $ 37.57
Tangible book value per common share (Non-GAAP) (2) $ 38.02 $ 36.30 $ 34.64 $ 33.06 $ 32.16
Closing stock price $ 56.00 $ 51.44 $ 48.09 $ 47.22 $ 39.59
Market capitalization $ 874,354 $ 801,972 $ 758,068 $ 748,141 $ 625,748
Market price / book value 129.15 % 123.42 % 120.24 % 122.90 % 105.38 %
Market price / tangible book value 147.30 % 141.72 % 138.83 % 142.83 % 123.09 %
Earnings per common share (basic) LTM (3) $ 6.30 $ 5.73 $ 4.81 $ 4.27 $ 3.84
Price earnings ratio LTM (3) 8.88 x 8.98 x 10.00 x 11.06 x 10.31 x
TCE / TA (Non-GAAP) (4) 9.87 % 9.54 % 9.51 % 9.38 % 9.05 %
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Beginning balance $ 649,814 $ 630,476 $ 608,719 $ 593,793 $ 572,613
Cumulative effect from the adoption of ASU 2016-13 "CECL" - - - (937 ) -
Net income 27,009 31,565 22,349 17,982 18,271
Other comprehensive income (loss), net of tax 295 (2,546 ) 4,179 (1,751 ) 3,157
Common stock cash dividends declared (935 ) (946 ) (951 ) (949 ) (947 )
Repurchase and cancellation of shares of common stock as a result of a share repurchase program - (9,367 ) (4,800 ) - -
Other (5) 827 632 980 581 699
Ending balance $ 677,010 $ 649,814 $ 630,476 $ 608,719 $ 593,793
REGULATORY CAPITAL RATIOS (6):
Total risk-based capital ratio 14.92 % 14.64 % 14.72 % 14.85 % 14.95 %
Tier 1 risk-based capital ratio 11.58 % 11.26 % 11.26 % 11.31 % 11.34 %
Tier 1 leverage capital ratio 10.46 % 10.28 % 10.29 % 10.10 % 9.49 %
Common equity tier 1 ratio 10.88 % 10.55 % 10.52 % 10.55 % 10.55 %
KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets (annualized) 1.76 % 2.11 % 1.56 % 1.27 % 1.25 % 1.68 % 1.08 %
Return on average total equity (annualized) 16.23 % 19.30 % 14.33 % 11.91 % 12.43 % 15.52 % 10.70 %
Net interest margin 3.29 % 3.36 % 3.28 % 3.26 % 3.25 % 3.30 % 3.28 %
Net interest margin (TEY) (Non-GAAP)(7) 3.50 % 3.56 % 3.46 % 3.43 % 3.45 % 3.49 % 3.44 %
Efficiency ratio (Non-GAAP) (8) 56.71 % 51.17 % 56.80 % 56.87 % 61.23 % 55.16 % 54.05 %
Gross loans and leases / total assets 76.77 % 76.48 % 75.81 % 76.95 % 74.52 % 76.77 % 74.81 %
Gross loans and leases / total deposits 95.07 % 94.41 % 94.22 % 94.15 % 92.43 % 95.07 % 92.43 %
Effective tax rate 18.92 % 20.08 % 17.64 % 16.45 % 17.99 % 18.57 % 17.34 %
Full-time equivalent employees 726 724 725 720 714 726 714
AVERAGE BALANCES
Assets $ 6,121,446 $ 5,982,583 $ 5,761,314 $ 5,691,097 $ 5,842,299 $ 5,890,042 $ 5,604,074
Loans/leases 4,608,111 4,529,136 4,412,322 4,271,782 4,250,951 4,456,461 4,031,567
Deposits 4,983,869 4,779,876 4,709,732 4,628,889 4,742,602 4,776,575 4,540,266
Total stockholders' equity 665,698 654,186 624,000 604,012 588,042 637,190 566,240

(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

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

ANALYSIS OF NET INTEREST INCOME AND MARGIN

For the Quarter Ended
December 31, 2021 September 30, 2021 December 31, 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 $ 3,334 $ 1 0.09 % $ 3,030 $ 1 0.10 % $ 1,216 $ 1 0.08 %
Interest-bearing deposits at financial institutions 161,514 63 0.15 % 99,024 39 0.16 % 279,024 82 0.12 %
Securities (1) 810,334 7,514 3.70 % 799,471 7,646 3.82 % 795,696 7,207 3.62 %
Restricted investment securities 18,929 231 4.78 % 20,910 262 4.97 % 18,790 236 4.92 %
Loans (1) 4,608,111 47,010 4.05 % 4,529,136 46,427 4.07 % 4,250,951 44,956 4.21 %
Total earning assets (1) $ 5,602,222 $ 54,819 3.89 % $ 5,451,571 $ 54,375 3.96 % $ 5,345,677 $ 52,482 3.91 %
Interest-bearing deposits $ 3,231,477 $ 2,401 0.29 % $ 3,041,941 $ 2,183 0.28 % $ 3,033,119 $ 2,060 0.27 %
Time deposits 442,835 963 0.86 % 461,210 1,090 0.94 % 530,813 1,752 1.31 %
Short-term borrowings 2,484 1 0.12 % 6,858 1 0.10 % 19,115 3 0.17 %
Federal Home Loan Bank advances 4,141 3 0.31 % 54,293 41 0.30 % 33,207 80 0.94 %
Subordinated debentures 113,829 1,554 5.46 % 113,789 1,554 5.46 % 118,612 1,678 5.66 %
Junior subordinated debentures 38,132 584 5.99 % 38,084 569 5.84 % 37,969 571 5.88 %
Total interest-bearing liabilities $ 3,832,898 $ 5,506 0.57 % $ 3,716,175 $ 5,438 0.58 % $ 3,772,835 $ 6,144 0.64 %
Net interest income (1) $ 49,313 $ 48,937 $ 46,338
Net interest margin (2) 3.29 % 3.36 % 3.25 %
Net interest margin (TEY) (Non-GAAP) (1) (2) (3) 3.50 % 3.56 % 3.45 %
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) 3.49 % 3.53 % 3.37 %
For the Year Ended
December 31, 2021 December 31, 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 $ 1,964 $ 2 0.10 % $ 2,398 $ 19 0.79 %
Interest-bearing deposits at financial institutions 116,421 173 0.15 % 315,616 669 0.21 %
Securities (1) 804,636 29,504 3.66 % 715,808 26,773 3.74 %
Restricted investment securities 19,386 950 4.83 % 20,270 1,031 5.00 %
Loans (1) 4,456,461 179,738 4.03 % 4,031,567 178,097 4.42 %
Total earning assets (1) $ 5,398,868 $ 210,367 3.90 % $ 5,085,659 $ 206,589 4.06 %
Interest-bearing deposits $ 3,058,917 $ 8,621 0.28 % $ 2,797,669 $ 11,980 0.43 %
Time deposits 448,191 4,679 1.04 % 690,222 11,289 1.64 %
Short-term borrowings 6,281 5 0.08 % 22,625 84 0.37 %
Federal Home Loan Bank advances 23,389 70 0.30 % 74,167 1,087 1.44 %
Subordinated debentures 115,398 6,272 5.44 % 83,404 4,697 5.63 %
Junior subordinated debentures 38,067 2,276 5.90 % 37,913 2,286 5.93 %
Total interest-bearing liabilities $ 3,690,243 $ 21,923 0.59 % $ 3,706,000 $ 31,423 0.85 %
Net interest income (1) $ 188,444 $ 175,166
Net interest margin (2) 3.30 % 3.28 %
Net interest margin (TEY) (Non-GAAP) (1) (2) (3) 3.49 % 3.44 %
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) 3.47 % 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.

10

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

As of
December 31, September 30, June 30, March 31, December 31,
2021 2021 2021 2021 2020
(dollars in thousands, except per share data)
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES
Beginning balance $ 80,670 $ 78,894 $ 81,831 $ 84,376 $ 79,582
Adoption of ASU 2016-13 "CECL" - Day 1 adjustment - - - (8,102 ) -
Provision charged to expense (2,045 ) 1,895 (141 ) 5,993 7,080
Loans/leases charged off (375 ) (287 ) (3,163 ) (713 ) (2,779 )
Recoveries on loans/leases previously charged off 471 168 367 277 493
Ending balance $ 78,721 $ 80,670 $ 78,894 $ 81,831 $ 84,376
NONPERFORMING ASSETS
Nonaccrual loans/leases $ 2,759 $ 6,818 $ 8,230 $ 13,863 $ 13,940
Accruing loans/leases past due 90 days or more 1 14 57 - 3
Total nonperforming loans/leases 2,760 6,832 8,287 13,863 13,943
Other real estate owned - - 1,820 173 20
Other repossessed assets - - - 50 135
Total nonperforming assets $ 2,760 $ 6,832 $ 10,107 $ 14,086 $ 14,098
ASSET QUALITY RATIOS
Nonperforming assets / total assets 0.05 % 0.11 % 0.17 % 0.25 % 0.25 %
ACL for loans and leases / total loans/leases (1) 1.68 % 1.75 % 1.79 % 1.88 % 1.98 %
ACL for loans and leases / nonperforming loans/leases (1) 2852.21 % 1180.77 % 952.02 % 590.28 % 605.15 %
Net charge-offs as a % of average loans/leases 0.00 % 0.00 % 0.06 % 0.01 % 0.05 %
INTERNALLY ASSIGNED RISK RATING (2)
Special mention (rating 6) $ 62,510 $ 58,634 $ 51,613 $ 53,466 $ 71,482
Substandard (rating 7) 53,159 59,402 79,719 84,982 66,081
Doubtful (rating 8) - - - - -
$ 115,669 $ 118,036 $ 131,332 $ 138,448 $ 137,563
Criticized loans (3) $ 115,669 $ 118,036 $ 131,332 $ 138,448 $ 137,563
Classified loans (4) 53,159 59,402 79,719 84,982 66,081
Criticized loans as a % of total loans/leases 2.47 % 2.57 % 2.97 % 3.17 % 3.24 %
Classified loans as a % of total loans/leases 1.14 % 1.29 % 1.80 % 1.95 % 1.55 %
(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.

11

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

For the Quarter Ended For the Year Ended
December 31, September 30, December 31, December 31, December 31,
SELECT FINANCIAL DATA - SUBSIDIARIES 2021 2021 2020 2021 2020
(dollars in thousands)
TOTAL ASSETS
Quad City Bank and Trust (1) $ 2,142,345 $ 2,106,631 $ 2,153,773
m2 Equipment Finance, LLC 266,588 259,543 243,090
Cedar Rapids Bank and Trust 2,030,279 2,019,018 1,957,695
Community State Bank - Ankeny 1,168,606 1,140,933 1,004,183
Springfield First Community Bank 882,885 880,143 779,955
TOTAL DEPOSITS
Quad City Bank and Trust (1) $ 1,849,313 $ 1,797,969 $ 1,866,635
Cedar Rapids Bank and Trust 1,504,992 1,526,144 1,378,108
Community State Bank - Ankeny 1,020,548 994,042 875,400
Springfield First Community Bank 590,164 605,947 569,036
TOTAL LOANS & LEASES
Quad City Bank and Trust (1) $ 1,650,234 $ 1,636,170 $ 1,556,762
m2 Equipment Finance, LLC 270,274 262,962 244,325
Cedar Rapids Bank and Trust 1,437,808 1,410,160 1,362,056
Community State Bank - Ankeny 866,952 834,533 707,681
Springfield First Community Bank 725,139 718,867 624,629
TOTAL LOANS & LEASES / TOTAL DEPOSITS
Quad City Bank and Trust (1) 89 % 91 % 83 %
Cedar Rapids Bank and Trust 96 % 92 % 99 %
Community State Bank - Ankeny 85 % 84 % 81 %
Springfield First Community Bank 123 % 119 % 110 %
TOTAL LOANS & LEASES / TOTAL ASSETS
Quad City Bank and Trust (1) 77 % 78 % 72 %
Cedar Rapids Bank and Trust 71 % 70 % 70 %
Community State Bank - Ankeny 74 % 73 % 70 %
Springfield First Community Bank 82 % 82 % 80 %
ACL ON LOANS/LEASES AS A PERCENTAGE OF LOANS/LEASES
Quad City Bank and Trust (1) 1.82 % 1.88 % 1.95 %
m2 Equipment Finance, LLC 3.55 % 3.78 % 2.63 %
Cedar Rapids Bank and Trust (2) 1.73 % 1.85 % 2.35 %
Community State Bank - Ankeny (2) 1.69 % 1.73 % 2.02 %
Springfield First Community Bank (2) 1.27 % 1.30 % 1.23 %
RETURN ON AVERAGE ASSETS
Quad City Bank and Trust (1) 1.86 % 1.66 % 1.52 % 1.63 % 0.99 %
Cedar Rapids Bank and Trust 2.56 % 3.93 % 0.59 % 2.85 % 1.81 %
Community State Bank - Ankeny 1.50 % 1.17 % 3.25 % 1.17 % 1.25 %
Springfield First Community Bank 1.82 % 2.09 % 3.02 % 1.73 % 1.74 %
NET INTEREST MARGIN PERCENTAGE (3)
Quad City Bank and Trust (1) 3.48 % 3.47 % 3.19 % 3.36 % 3.17 %
Cedar Rapids Bank and Trust (4) 3.66 % 3.68 % 3.51 % 3.62 % 3.47 %
Community State Bank - Ankeny (5) 3.52 % 3.78 % 3.77 % 3.66 % 3.89 %
Springfield First Community Bank (6) 3.49 % 3.67 % 4.03 % 3.56 % 3.87 %
ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET INTEREST MARGIN, NET
Cedar Rapids Bank and Trust $ 21 $ 64 $ 103 $ 190 $ 430
Community State Bank - Ankeny 30 52 132 468 325
Springfield First Community Bank 89 376 880 844 2,671
QCR Holdings, Inc. (7) (52 ) (36 ) (38 ) (162 ) (155 )
(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 3.65% for the quarter ended December 31, 2021, 3.66% for the quarter ended September 30, 2021 and 3.47% for the quarter ended December 31, 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 3.50% for the quarter ended December 31, 2021, 3.75% for the quarter ended September 30, 2021 and 3.69% for the quarter ended December 31, 2020.
(6) Springfield First Community Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 3.50% for the quarter ended December 31, 2021, 3.53% for the quarter ended September 30, 2021 and 3.59% for the quarter ended December 31, 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.

12

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

As of
December 31, September 30, June 30, March 31, December 31,
GAAP TO NON-GAAP RECONCILIATIONS 2021 2021 2021 2021 2020
(dollars in thousands, except per share data)
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)
Stockholders' equity (GAAP) $ 677,010 $ 649,814 $ 630,476 $ 608,719 $ 593,793
Less: Intangible assets 83,415 83,923 84,431 84,939 85,447
Tangible common equity (non-GAAP) $ 593,595 $ 565,891 $ 546,045 $ 523,780 $ 508,346
Total assets (GAAP) $ 6,096,132 $ 6,014,508 $ 5,827,412 $ 5,667,394 $ 5,705,043
Less: Intangible assets 83,415 83,923 84,431 84,939 85,447
Tangible assets (non-GAAP) $ 6,012,717 $ 5,930,585 $ 5,742,981 $ 5,582,455 $ 5,619,596
Tangible common equity to tangible assets ratio (non-GAAP) 9.87 % 9.54 % 9.51 % 9.38 % 9.05 %
(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.

13

QCR Holdings, Inc.

Consolidated Financial Highlights

(Unaudited)

GAAP TO NON-GAAP RECONCILIATIONS For the Quarter Ended For the Year Ended
December 31, September 30, June 30, March 31, December 31, December 31, December 31,
ADJUSTED NET INCOME (1) 2021 2021 2021 2021 2020 2021 2020
(dollars in thousands, except per share data)
Net income (GAAP) $ 27,009 $ 31,565 $ 22,349 $ 17,982 $ 18,271 $ 98,905 $ 60,582
Less non-core items (post-tax) (2):
Income:
Securities gains(losses), net - - (69 ) - 487 $ (69 ) $ 1,962
Mark to Market gains (losses) on derivatives, net 77 (13 ) (58 ) 129 - 135 $ -
Gain on sale of loan - 28 - - - 28
Loss on syndicated loan - - - - (210 ) - $ (210 )
Total non-core income (non-GAAP) $ 77 $ 15 $ (127 ) $ 129 $ 277 $ 94 $ 1,752
Expense:
Losses on debt extinguishment, net $ - $ - $ - $ - $ 1,151 $ - $ 3,087
Goodwill impairment - - - - - - 500
Disposition costs 3 - - 7 51 10 545
Acquisition costs (4) 493 - - - - 493 -
Separation agreement - - - 734 - 734 -
Post-acquisition compensation, transition and integration costs - - - - 20 - 169
Loss on sale of subsidiary - - - - (102 ) - 110
Total non-core expense (non-GAAP) $ 496 $ - $ - $ 741 $ 1,119 $ 1,237 $ 4,411
Adjusted net income (non-GAAP) (1) $ 27,428 $ 31,550 $ 22,476 $ 18,594 $ 19,113 $ 100,048 $ 63,241
ADJUSTED EARNINGS PER COMMON SHARE (1)
Adjusted net income (non-GAAP) (from above) $ 27,428 $ 31,550 $ 22,476 $ 18,594 $ 19,113 $ 100,048 $ 63,241
Weighted average common shares outstanding 15,582,276 15,635,123 15,813,932 15,803,643 15,775,596 15,708,744 15,771,650
Weighted average common and common equivalent shares outstanding 15,838,246 15,869,798 16,045,239 16,025,548 15,973,054 15,944,708 15,952,637
Adjusted earnings per common share (non-GAAP):
Basic $ 1.76 $ 2.02 $ 1.42 $ 1.18 $ 1.21 $ 6.37 $ 4.01
Diluted $ 1.73 $ 1.99 $ 1.40 $ 1.16 $ 1.20 $ 6.27 $ 3.96
ADJUSTED RETURN ON AVERAGE ASSETS (1)
Adjusted net income (non-GAAP) (from above) $ 27,428 $ 31,550 $ 22,476 $ 18,594 $ 19,113 $ 100,048 $ 63,241
Average Assets $ 6,121,446 $ 5,982,583 $ 5,761,314 $ 5,691,097 $ 5,842,299 $ 5,890,042 $ 5,604,074
Adjusted return on average assets (annualized) (non-GAAP) 1.79 % 2.11 % 1.56 % 1.31 % 1.31 % 1.70 % 1.13 %
NET INTEREST MARGIN (TEY) (4)
Net interest income (GAAP) $ 46,513 $ 46,229 $ 43,516 $ 41,975 $ 43,707 $ 178,233 $ 166,950
Plus: Tax equivalent adjustment (3) 2,800 2,708 2,444 2,267 2,631 10,211 8,216
Net interest income - tax equivalent (Non-GAAP) $ 49,313 $ 48,937 $ 45,960 $ 44,242 $ 46,338 $ 188,444 $ 175,166
Less: Acquisition accounting net accretion 88 456 291 504 1,077 1,340 3,271
Adjusted net interest income $ 49,225 $ 48,481 $ 45,669 $ 43,738 $ 45,261 $ 187,104 $ 171,895
Average earning assets $ 5,602,222 $ 5,451,571 $ 5,320,881 $ 5,218,198 $ 5,345,677 $ 5,398,868 $ 5,085,659
Net interest margin (GAAP) 3.29 % 3.36 % 3.28 % 3.26 % 3.25 % 3.30 % 3.28 %
Net interest margin (TEY) (Non-GAAP) 3.50 % 3.56 % 3.46 % 3.43 % 3.45 % 3.49 % 3.44 %
Adjusted net interest margin (TEY) (Non-GAAP) 3.49 % 3.53 % 3.44 % 3.40 % 3.37 % 3.47 % 3.38 %
EFFICIENCY RATIO (5)
Noninterest expense (GAAP) $ 39,412 $ 41,387 $ 35,675 $ 37,228 $ 46,364 $ 153,702 $ 151,755
Net interest income (GAAP) $ 46,513 $ 46,229 $ 43,516 $ 41,975 $ 43,707 $ 178,233 $ 166,950
Noninterest income (GAAP) 22,985 34,652 19,296 23,489 32,017 100,422 113,798
Total income $ 69,498 $ 80,881 $ 62,812 $ 65,464 $ 75,724 $ 278,655 $ 280,748
Efficiency ratio (noninterest expense/total income) (Non-GAAP) 56.71 % 51.17 % 56.80 % 56.87 % 61.23 % 55.16 % 54.05 %
ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES TO TOTAL LOANS/LEASES, EXCLUDING PPP LOANS (6)
Allowance for credit losses on loans and leases $ 78,721 $ 80,670 $ 78,894 $ 81,831 $ 84,376 $ 78,721 $ 84,376
Total loans and leases $ 4,680,132 $ 4,599,730 $ 4,417,705 $ 4,361,051 $ 4,251,129 $ 4,680,132 $ 4,251,129
Less: PPP loans 28,181 83,575 147,506 243,860 273,146 28,181 273,146
Total loans and leases, excluding PPP loans $ 4,651,951 $ 4,516,155 $ 4,270,199 $ 4,117,191 $ 3,977,983 $ 4,651,951 $ 3,977,983
Allowance for credit losses on loans and leases to total loans and leases, excluding PPP loans 1.69 % 1.79 % 1.85 % 1.99 % 2.12 % 1.69 % 2.12 %
LOAN GROWTH ANNUALIZED, EXCLUDING PPP LOANS
Total loans and leases $ 4,680,132 $ 4,599,730 $ 4,417,705 $ 4,361,051 $ 4,251,129 $ 4,680,132 $ 4,251,129
Less: PPP loans 28,181 83,575 147,506 243,860 273,146 28,181 273,146
Total loans and leases, excluding PPP loans $ 4,651,951 $ 4,516,155 $ 4,270,199 $ 4,117,191 $ 3,977,983 $ 4,651,951 $ 3,977,983
Loan growth annualized, excluding PPP loans 12.03 % 23.04 % 14.87 % 14.00 % 9.00 % 16.94 % 7.80 %
(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.

14

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

QCR Holdings Inc. published this content on 25 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 January 2022 21:19:40 UTC.