QCR Holdings, Inc. Announces Fourth Quarter Results and Record Net Income of $113.9 Million for the Full Year 2024

Fourth Quarter Highlights Net income of $30.2 million, or $1.77 per diluted shareAdjusted net income of $32.8 million, or $1.93 per diluted share (non-GAAP) Record quarterly net interest income of $61.2 million Expanded NIM by 5 basis points and adjusted NIM (TEY) (non-GAAP) by 6 basis points to 3.40%Significant capital markets revenue of $20.6 million, including a $1.4 million gain on fourth securitizationTangible book value per share (non-GAAP) grew $1.21, or 10% annualizedTCE/TA ratio (non-GAAP) improved by 31 basis points to 9.55% Full Year Highlights Record annual net income of $113.9 million, or $6.71 per diluted shareRecord adjusted net income (non-GAAP) of $119.3 million, or $7.03 per diluted share (non-GAAP)Significant capital markets revenue of $71.1 millionRobust loan growth of 10% prior to loan securitizations and strong deposit growth of 8%Tangible book value per share (non-GAAP) increased $6.40, or 15%TCE/TA ratio (non-GAAP) improved by 80 basis points to 9.55% MOLINE, Ill., Jan. 22, 2025 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $30.2 million and diluted earnings per share (“EPS”) of $1.77 for the fourth quarter of 2024, compared to net income of $27.8 million and diluted EPS of $1.64 for the third quarter of 2024. For the full year, the Company reported record net income of $113.9 million, or $6.71 per diluted share. Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the fourth quarter of 2024 were $32.8 million and $1.93, respectively. For the third quarter of 2024, adjusted net income (non-GAAP) was $30.3 million and adjusted diluted EPS (non-GAAP) was $1.78. For the fourth quarter of 2023, net income and diluted EPS were $32.9 million and $1.95, respectively, and adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $33.3 million and $1.97, respectively. Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the full year of 2024 were $119.3 million and $7.03, respectively. For the Quarter Ended December 31,September 30,December 31,$ in millions (except per share data)202420242023Net Income$30.2 $27.8 $32.9 Diluted EPS$1.77 $1.64 $1.95 Adjusted Net Income (non-GAAP)*$32.8 $30.3 $33.3 Adjusted Diluted EPS (non-GAAP)*$1.93 $1.78 $1.97 *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 measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations. “We delivered our strongest results of the year in the fourth quarter, generating record full year results. Our exceptional performance was highlighted by significant growth in net interest income, driven by margin expansion, and robust loan growth,” said Larry J. Helling, Chief Executive Officer. “Additionally, we produced another strong year of capital markets and wealth management revenue while controlling our core operating expenses and maintaining excellent asset quality. We also successfully executed on our fourth low-income housing tax credit securitization during the fourth quarter.” “We begin 2025 with a solid pipeline of loans and deposits, strong credit quality, and well-managed expenses. Our focus remains on growing our franchise through relationship-driven banking and executing on our unique business model which delivers exceptional operational performance for our shareholders,” said Mr. Helling. Record Net Interest Income and Continued NIM Expansion Net interest income for the fourth quarter of 2024 totaled $61.2 million, an increase of $1.5 million from the third quarter of 2024. Acquisition-related net accretion totaled $471 thousand for the fourth quarter of 2024, compared to $463 thousand in the third quarter of 2024. Net interest income was $55.7 million for the fourth quarter of 2023. In the fourth quarter of 2024, net interest margin (“NIM”) was 2.95% and NIM on a tax-equivalent yield (“TEY”) basis (non-GAAP) was 3.43%, up from 2.90% and 3.37% in the prior quarter, respectively. Adjusted NIM TEY (non-GAAP) of 3.40% was also up from 3.34% in the third quarter of 2024. “Our adjusted NIM on a tax equivalent yield basis improved by 6 basis points to 3.40% in the fourth quarter near the top end of our guidance range,” said Todd A. Gipple, President and Chief Financial Officer. “We were successful in significantly reducing our cost of interest-bearing deposits in the fourth quarter by 33 basis points, contributing to a significant decrease in our funding costs. Our ability to aggressively react to the recent Fed interest rate cuts has contributed meaningfully to our NIM expansion.” Looking forward, the Company expects to continue growing its NIM in the first quarter of 2025. “We project our adjusted NIM on a tax equivalent yield basis for the first quarter of 2025 to be in the range from static to an increase of 5 basis points,” said Mr. Gipple. Significant Capital Markets and Wealth Management Revenue Noninterest income for the fourth quarter of 2024 totaled $30.6 million, up from $27.2 million for the third quarter of 2024. The Company generated strong capital markets revenue of $20.6 million up from $16.3 million in the prior quarter. Capital markets revenue in the fourth quarter included a $1.4 million gain from the Company’s fourth low-income housing tax credit (“LIHTC”) securitization, compared to a $473 thousand loss in the third quarter of 2024. Wealth management revenues also increased during the fourth quarter with $4.8 million in revenue, up from $4.5 million in the prior quarter, or 25% annualized. “Our capital markets business delivered strong results, fueled by swap fees generated through our LIHTC lending program. The strong demand for affordable housing continues to support the sustainability of our LIHTC lending initiatives," said Mr. Gipple. "Our LIHTC lending pipeline and related capital markets revenue remains solid. As a result, we expect our capital markets revenue from swap fees for the next twelve months to be in a range of $50 to $60 million. Furthermore, our wealth management business continues to expand, driven by new client acquisitions and growth in assets under management.” Noninterest Expenses Impacted by Higher Incentive Compensation but Efficiency Ratio Improves Noninterest expense for the fourth quarter of 2024 totaled $53.5 million which was consistent with the prior quarter, and lower than $60.9 million in the fourth quarter of 2023. The fourth quarter included higher incentive-based compensation related to strong fourth quarter and record full year performance as well as investments in the digital transformation of the Company’s core systems. “Our core expenses, while impacted by higher incentive compensation and system conversion expenses during the fourth quarter, remained well-controlled for the full year, decreasing $5.1 million, or 2% from the prior year,” said Mr. Gipple. The Company’s efficiency ratio (non-GAAP) improved to 58.26% and the adjusted efficiency ratio (non-GAAP) improved to 56.25% in the fourth quarter of 2024. For the first quarter of 2025 we expect noninterest expense to be in the range of $52 to $55 million, an increase of 4% which aligns with the Company’s 9/6/5 strategic model. Continued Strong Loan Growth During the fourth quarter of 2024, loans and leases held for investment grew $120.5 million, or 7% annualized from the prior quarter to a total of $6.8 billion. For the full year, prior to loan securitizations of $387 million, the Company’s total loans and leases grew $628 million, or 10% from the prior year. “Our solid performance reflects the strength of our unique, relationship-driven community banking model and the economic resilience within our markets”, added Mr. Helling. “With our current pipeline and the continued strength of our markets, we anticipate gross loan growth between 8% and 10% for the full year 2025. When factoring in the loan securitization that we have planned for 2025 and the continuing runoff of m2 Equipment Finance loans, we are targeting net loan growth between 1% and 3% for the year.” Asset Quality Remains Excellent Nonperforming assets (“NPAs”) totaled $45.6 million at the end of the fourth quarter of 2024, an increase of $9.9 million from $35.7 million at the end of the third quarter of 2024. The increase in NPAs was primarily due to three loans in discrete industries. These changes are reflective of the credit environment normalizing from historically low levels. The ratio of NPAs to total assets was 0.50% on December 31, 2024, compared to 0.39% on September 30, 2024. In addition, the Company’s criticized loans and classified loans to total loans and leases on December 31, 2024, were 2.34% and 1.25% compared to 2.20% and 1.03%, respectively, as of September 30, 2024. At December 31, 2024, approximately 43% of the Company’s total NPAs are comprised of just four relationships. The Company’s largest NPA of $9.7 million was fully paid off in mid-January of 2025. This successful outcome reduced total NPAs down to $35.9 million, or 0.40% of total assets on a proforma basis, consistent with December 31, 2023. The Company recorded a total provision for credit losses of $5.2 million during the fourth quarter of 2024, representing a $1.7 million increase from the prior quarter driven by strong loan growth and an increase in criticized loan balances. As of December 31, 2024, the allowance for credit losses to total loans/leases held for investment was 1.32%, an increase of 2 basis points from the prior quarter. Strong Core Deposit Growth and Increased Liquidity During the fourth quarter of 2024, core deposits, which exclude brokered deposits, increased $75.6 million or 5% annualized. For the full year total core deposits grew $474 million or 8% from the prior year, outpacing net loan growth and increasing immediate liquidity. Total uninsured and uncollateralized deposits remain quite low at $1.3 billion, or 19% of total deposits as of the end of the fourth quarter of 2024, compared to 21% as of the end of the third quarter of 2024. Total available liquidity as of quarter end was approximately $4 billion, which included $1.7 billion in instantly accessible liquidity. Capital Levels Increased As of December 31, 2024, the Company’s total risk-based capital ratio was 14.10%, its common equity tier 1 ratio was 10.03% and its tangible common equity to tangible assets ratio (“TCE”) (non-GAAP) was 9.55%. By comparison, these ratios were 13.87%, 9.79% and 9.24%, respectively, as of September 30, 2024. We remain focused on growing capital and targeting TCE in the top quartile of the Company’s peer group. The Company’s tangible book value per share (non-GAAP) increased by $1.21, or 10% annualized during the fourth quarter, of 2024. For the full year the tangible book value per share (non-GAAP) increased by $6.40, or 15% from the prior year. The combination of strong earnings and a modest dividend contributed to the improvement in tangible book value per share (non-GAAP). Accumulated other comprehensive income (“AOCI”) decreased $9.6 million during the fourth quarter of 2024 due to a decrease in the value of the Company’s available for sale securities portfolio and certain derivatives resulting from the change in long-term interest rates during the quarter. Conference Call Details The Company will host an earnings call/webcast tomorrow, January 23, 2025, 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 January 30, 2025. The replay access information is 877-344-7529 (international 412-317-0088); access code 8346661. 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 four 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 Guaranty Bank (formerly known as Springfield Fist 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. The Company has 36 locations in Iowa, Missouri, Wisconsin and Illinois. As of December 31, 2024, the Company had $9.0 billion in assets, $6.8 billion in loans and $7.1 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, but are not limited to: (i) the strength of the local, state, national and international economies and financial markets (including effects of inflationary pressures and supply chain constraints); (ii) effects on the U.S. economy resulting from the implementation of policies proposed by the new presidential administration, including tariffs, mass deportations and tax regulations; (iii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or threats thereof (including the Russian invasion of Ukraine and ongoing conflicts in the Middle East), or other adverse 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; (iv) new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB, the Securities and Exchange Commission (the “SEC”) or the PCAOB; (v) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the bank failures in 2023; (vi) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company’s commercial borrowers; (vii) 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; (viii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (ix) unexpected results of acquisitions which may include failure to realize the anticipated benefits of the acquisitions and the possibility that transaction costs may be greater than anticipated; (x) the loss of key executives and employees, talent shortages and employee turnover; (xi) changes in consumer spending; (xii) unexpected outcomes and costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (xiii) the economic impact on the Company and its customers of climate change, natural disasters and exceptional weather occurrences such as tornadoes, floods and blizzards; (xiv) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (xv) credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio and large loans to certain borrowers (including CRE loans); (xvi) the overall health of the local and national real estate market; (xvii) the ability to maintain an adequate level of allowance for credit losses on loans; (xviii) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure; (xix) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (xx) the level of non-performing assets on our balance sheets; (xxi) interruptions involving our information technology and communications systems or third-party servicers; (xxii) the occurrence of fraudulent activity, breaches or failures of our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxiii) changes in the interest rates and repayment rates of the Company’s assets; (xxiv) the effectiveness of the Company’s risk management framework, and (xxv) 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 SEC. Contact: Todd A. Gipple President Chief Financial Officer (309) 743-7745 tgipple@qcrh.com QCR Holding, Inc.Consolidated Financial Highlights(Unaudited) As of December 31,September 30,June 30,March 31,December 31, 20242024202420242023 (dollars in thousands) CONDENSED BALANCE SHEET Cash and due from banks$91,732 $103,840 $92,173 $80,988 $97,123 Federal funds sold and interest-bearing deposits 170,592 159,159 102,262 77,020 140,369 Securities, net of allowance for credit losses 1,200,435 1,146,046 1,033,199 1,031,861 1,005,528 Loans receivable held for sale (1) 2,143 167,047 246,124 275,344 2,594 Loans/leases receivable held for investment 6,782,261 6,661,755 6,608,262 6,372,992 6,540,822 Allowance for credit losses (89,841) (86,321) (87,706) (84,470) (87,200)Intangibles 11,061 11,751 12,441 13,131 13,821 Goodwill 138,596 138,596 139,027 139,027 139,027 Derivatives 186,781 261,913 194,354 183,888 188,978 Other assets 532,270 524,779 531,855 509,768 497,832 Total assets$ 9,026,030 $ 9,088,565 $ 8,871,991 $ 8,599,549 $ 8,538,894 Total deposits$7,061,187 $6,984,633 $6,764,667 $6,806,775 $6,514,005 Total borrowings 569,532 660,344 768,671 489,633 718,295 Derivatives 214,823 285,769 221,798 211,677 214,098 Other liabilities 183,101 181,199 180,536 184,122 205,900 Total stockholders' equity 997,387 976,620 936,319 907,342 886,596 Total liabilities and stockholders' equity$ 9,026,030 $ 9,088,565 $ 8,871,991 $ 8,599,549 $ 8,538,894 ANALYSIS OF LOAN PORTFOLIO Loan/lease mix: (2) Commercial and industrial - revolving$387,991 $387,409 $362,115 $326,129 $325,243 Commercial and industrial - other 1,295,961 1,321,053 1,370,561 1,374,333 1,390,068 Commercial and industrial - other - LIHTC 218,971 89,028 92,637 96,276 91,710 Total commercial and industrial 1,902,923 1,797,490 1,825,313 1,796,738 1,807,021 Commercial real estate, owner occupied 605,993 622,072 633,596 621,069 607,365 Commercial real estate, non-owner occupied 1,077,852 1,103,694 1,082,457 1,055,089 1,008,892 Construction and land development 395,557 342,335 331,454 410,918 477,424 Construction and land development - LIHTC 917,986 913,841 750,894 738,609 943,101 Multi-family 303,662 324,090 329,239 296,245 284,721 Multi-family - LIHTC 828,448 973,682 1,148,244 1,007,321 711,422 Direct financing leases 17,076 19,241 25,808 28,089 31,164 1-4 family real estate 588,179 587,512 583,542 563,358 544,971 Consumer 146,728 144,845 143,839 130,900 127,335 Total loans/leases$6,784,404 $6,828,802 $6,854,386 $6,648,336 $6,543,416 Less allowance for credit losses 89,841 86,321 87,706 84,470 87,200 Net loans/leases$ 6,694,563 $ 6,742,481 $ 6,766,680 $ 6,563,866 $ 6,456,216 ANALYSIS OF SECURITIES PORTFOLIO Securities mix: U.S. government sponsored agency securities$20,591 $18,621 $20,101 $14,442 $14,973 Municipal securities 971,567 965,810 885,046 884,469 853,645 Residential mortgage-backed and related securities 50,042 53,488 54,708 56,071 59,196 Asset backed securities 9,224 10,455 12,721 14,285 15,423 Other securities 65,745 39,190 38,464 40,539 41,115 Trading securities (3) 83,529 58,685 22,362 22,258 22,368 Total securities$1,200,698 $1,146,249 $1,033,402 $1,032,064 $1,006,720 Less allowance for credit losses 263 203 203 203 1,192 Net securities$ 1,200,435 $ 1,146,046 $ 1,033,199 $ 1,031,861 $ 1,005,528 ANALYSIS OF DEPOSITS Deposit mix: Noninterest-bearing demand deposits$921,160 $969,348 $956,445 $955,167 $1,038,689 Interest-bearing demand deposits 4,828,216 4,715,087 4,644,918 4,714,555 4,338,390 Time deposits 953,496 942,847 859,593 875,491 851,950 Brokered deposits 358,315 357,351 303,711 261,562 284,976 Total deposits$ 7,061,187 $ 6,984,633 $ 6,764,667 $ 6,806,775 $ 6,514,005 ANALYSIS OF BORROWINGS Borrowings mix: Term FHLB advances$145,383 $145,383 $135,000 $135,000 $135,000 Overnight FHLB advances 140,000 230,000 350,000 70,000 300,000 Other short-term borrowings 1,800 2,750 1,600 2,700 1,500 Subordinated notes 233,489 233,383 233,276 233,170 233,064 Junior subordinated debentures 48,860 48,828 48,795 48,763 48,731 Total borrowings$ 569,532 $ 660,344 $ 768,671 $ 489,633 $ 718,295 (1)Loans with a fair value of $0 million, $165.9 million, $243.2 million, $274.8 million and $0 million have been identified for securitization and are included in LHFS at December 31, 2024, September 30, 2024, June 30, 2024, March 31, 2024 and December 31, 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 December 31, 2024.(3)Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company. QCR Holding, Inc.Consolidated Financial Highlights(Unaudited) For the Quarter Ended December 31,September 30,June 30,March 31,December 31, 20242024202420242023 (dollars in thousands, except per share data) INCOME STATEMENT Interest income $121,642 $125,420 $119,746 $115,049 $112,248 Interest expense 60,438 65,698 63,583 60,350 56,512 Net interest income 61,204 59,722 56,163 54,699 55,736 Provision for credit losses 5,149 3,484 5,496 2,969 5,199 Net interest income after provision for credit losses $ 56,055 $ 56,238 $ 50,667 $ 51,730 $ 50,537 Trust fees $3,456 $3,270 $3,103 $3,199 $3,084 Investment advisory and management fees 1,320 1,229 1,214 1,101 1,052 Deposit service fees 2,228 2,294 1,986 2,022 2,008 Gains on sales of residential real estate loans, net 734 385 540 382 323 Gains on sales of government guaranteed portions of loans, net 49 - 12 24 24 Capital markets revenue 20,552 16,290 17,758 16,457 36,956 Earnings on bank-owned life insurance 797 814 2,964 868 832 Debit card fees 1,555 1,575 1,571 1,466 1,561 Correspondent banking fees 560 507 510 512 465 Loan related fee income 950 949 962 836 845 Fair value gain (loss) on derivatives and trading securities (1,781) (886) 51 (163) (582)Other 205 730 218 154 1,161 Total noninterest income $ 30,625 $ 27,157 $ 30,889 $ 26,858 $ 47,729 Salaries and employee benefits $33,610 $31,637 $31,079 $31,860 $41,059 Occupancy and equipment expense 6,354 6,168 6,377 6,514 6,789 Professional and data processing fees 5,480 4,457 4,823 4,613 4,223 Restructuring expense - 1,954 - - - FDIC insurance, other insurance and regulatory fees 1,934 1,711 1,854 1,945 2,115 Loan/lease expense 513 587 151 378 834 Net cost of (income from) and gains/losses on operations of other real estate 23 (42) 28 (30) 38 Advertising and marketing 1,886 2,124 1,565 1,483 1,641 Communication and data connectivity 345 333 318 401 449 Supplies 252 278 259 275 333 Bank service charges 635 603 622 568 761 Correspondent banking expense 328 325 363 305 300 Intangibles amortization 691 690 690 690 716 Goodwill impairment - 431 - - - Payment card processing 516 785 706 646 836 Trust expense 381 395 379 425 413 Other 551 1,129 674 617 431 Total noninterest expense $ 53,499 $ 53,565 $ 49,888 $ 50,690 $ 60,938 Net income before income taxes $ 33,181 $ 29,830 $ 31,668 $ 27,898 $ 37,328 Federal and state income tax expense 2,956 2,045 2,554 1,172 4,473 Net income $ 30,225 $ 27,785 $ 29,114 $ 26,726 $ 32,855 Basic EPS $1.80 $1.65 $1.73 $1.59 $1.96 Diluted EPS $1.77 $1.64 $1.72 $1.58 $1.95 Weighted average common shares outstanding 16,871,652 16,846,200 16,814,814 16,783,348 16,734,080 Weighted average common and common equivalent shares outstanding 17,024,481 16,982,400 16,921,854 16,910,675 16,875,952 QCR Holding, Inc.Consolidated Financial Highlights(Unaudited) For the Year Ended December 31, December 31, 2024 2023 (dollars in thousands, except per share data) INCOME STATEMENT Interest income $481,857 $413,410 Interest expense 250,069 192,404 Net interest income 231,788 221,006 Provision for credit losses 17,098 16,539 Net interest income after provision for credit losses $ 214,690 $ 204,467 Trust fees $13,028 $11,697 Investment advisory and management fees 4,864 3,864 Deposit service fees 8,530 8,177 Gains on sales of residential real estate loans, net 2,041 1,611 Gains on sales of government guaranteed portions of loans, net 85 54 Capital markets revenue 71,057 92,065 Securities losses, net - (451)Earnings on bank-owned life insurance 5,443 4,184 Debit card fees 6,167 6,200 Correspondent banking fees 2,089 1,662 Loan related fee income 3,697 3,066 Fair value loss on derivatives and trading securities (2,779) (1,262)Other 1,307 1,817 Total noninterest income $ 115,529 $ 132,684 Salaries and employee benefits $128,186 $136,619 Occupancy and equipment expense 25,413 25,031 Professional and data processing fees 19,373 16,271 Post-acquisition compensation, transition and integration costs - 207 Restructuring expense 1,954 - FDIC insurance, other insurance and regulatory fees 7,444 7,137 Loan/lease expense 1,629 2,868 Net cost of (income from) and gains/losses on operations of other real estate (21) (26)Advertising and marketing 7,058 6,042 Communication and data connectivity 1,397 2,063 Supplies 1,064 1,254 Bank service charges 2,428 2,592 Correspondent banking expense 1,321 963 Intangibles amortization 2,761 2,938 Goodwill impairment 431 - Payment card processing 2,653 2,656 Trust expense 1,580 1,396 Other 2,971 2,520 Total noninterest expense $ 207,642 $ 210,531 Net income before income taxes $ 122,577 $ 126,620 Federal and state income tax expense 8,727 13,062 Net income $ 113,850 $ 113,558 Basic EPS $6.77 $6.79 Diluted EPS $6.71 $6.73 Weighted average common shares outstanding 16,829,004 16,732,406 Weighted average common and common equivalent shares outstanding 16,959,853 16,866,391 QCR Holding, 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, 20242024202420242023 20242023 (dollars in thousands, except per share data) COMMON SHARE DATA Common shares outstanding 16,882,045 16,861,108 16,824,985 16,807,056 16,749,254 Book value per common share (1)$59.08 $57.92 $55.65 $53.99 $52.93 Tangible book value per common share (Non-GAAP) (2)$50.21 $49.00 $46.65 $44.93 $43.81 Closing stock price$80.64 $74.03 $60.00 $60.74 $58.39 Market capitalization$1,361,368 $1,248,228 $1,009,499 $1,020,861 $977,989 Market price / book value 136.49% 127.81% 107.82% 112.51% 100.31% Market price / tangible book value 160.59% 151.07% 128.62% 135.18% 133.29% Earnings per common share (basic) LTM (3)$6.77 $6.93 $6.78 $6.75 $6.78 Price earnings ratio LTM (3) 11.91 x 10.68 x 8.85 x 9.00 x 8.61 x TCE / TA (Non-GAAP) (4) 9.55% 9.24% 9.00% 8.94% 8.75% CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY Beginning balance$976,620 $936,319 $907,342 $886,596 $828,383 Net income 30,225 27,785 29,114 26,726 32,855 Other comprehensive income (loss), net of tax (9,628) 12,057 (368) (5,373) 25,363 Common stock cash dividends declared (1,013) (1,012) (1,008) (1,008) (1,004) Other (5) 1,183 1,471 1,239 401 999 Ending balance$ 997,387 $ 976,620 $ 936,319 $ 907,342 $ 886,596 REGULATORY CAPITAL RATIOS (6): Total risk-based capital ratio 14.10% 13.87% 14.21% 14.30% 14.29% Tier 1 risk-based capital ratio 10.57% 10.33% 10.49% 10.50% 10.27% Tier 1 leverage capital ratio 10.73% 10.50% 10.40% 10.33% 10.03% Common equity tier 1 ratio 10.03% 9.79% 9.92% 9.91% 9.67% KEY PERFORMANCE RATIOS AND OTHER METRICS Return on average assets (annualized) 1.34% 1.24% 1.33% 1.25% 1.54% 1.29% 1.39%Return on average total equity (annualized) 12.15% 11.55% 12.63% 11.83% 15.42% 12.04% 13.78%Net interest margin 2.95% 2.90% 2.82% 2.82% 2.90% 2.88% 2.97%Net interest margin (TEY) (Non-GAAP)(7) 3.43% 3.37% 3.27% 3.25% 3.32% 3.33% 3.35%Efficiency ratio (Non-GAAP) (8) 58.26% 61.65% 57.31% 62.15% 58.90% 59.78% 59.52%Gross loans/leases held for investment / total assets 75.14% 73.30% 74.48% 74.11% 76.60% 75.14% 76.63%Gross loans/leases held for investment / total deposits 96.05% 95.38% 97.69% 93.63% 100.41% 96.05% 100.45%Effective tax rate 8.91% 6.86% 8.06% 4.20% 11.98% 7.12% 10.32%Full-time equivalent employees 980 976 988 986 996 980 996 AVERAGE BALANCES Assets$9,050,280 $8,968,653 $8,776,002 $8,550,855 $8,535,732 $8,837,393 $8,165,805 Loans/leases 6,839,153 6,840,527 6,779,075 6,598,614 6,483,572 6,764,754 6,337,551 Deposits 7,109,567 6,858,196 6,687,188 6,595,453 6,485,154 6,813,620 6,325,790 Total stockholders' equity 995,012 962,302 921,986 903,371 852,163 945,848 825,557 (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. QCR Holding, Inc.Consolidated Financial Highlights(Unaudited) ANALYSIS OF NET INTEREST INCOME AND MARGIN For the Quarter Ended December 31, 2024 September 30, 2024 December 31, 2023 Average BalanceInterest Earned or PaidAverage Yield or Cost Average BalanceInterest Earned or PaidAverage Yield or Cost Average BalanceInterest Earned or PaidAverage Yield or Cost (dollars in thousands) Fed funds sold$5,617 $67 4.68% $12,596 $173 5.37% $18,644 $257 5.47%Interest-bearing deposits at financial institutions 158,151 1,823 4.59% 145,597 1,915 5.23% 72,439 986 5.40%Investment securities - taxable 375,552 4,230 4.49% 381,285 4,439 4.64% 365,686 4,080 4.45%Investment securities - nontaxable (1) 829,544 12,286 5.92% 760,645 10,744 5.65% 650,069 8,380 5.15%Restricted investment securities 33,173 608 7.17% 42,546 840 7.73% 40,625 670 6.45%Loans (1) 6,839,153 112,325 6.53% 6,840,527 116,854 6.80% 6,483,572 105,830 6.48%Total earning assets (1)$8,241,190 $131,339 6.34% $8,183,196 $134,965 6.56% $7,631,035 $120,203 6.26% Interest-bearing deposits$4,881,914 $39,408 3.21% $4,739,757 $42,180 3.54% $4,465,279 $37,082 3.29%Time deposits 1,248,412 13,868 4.42% 1,164,560 13,206 4.51% 982,356 10,559 4.26%Short-term borrowings 1,862 22 4.67% 2,485 32 5.07% 1,101 15 5.18%Federal Home Loan Bank advances 236,525 2,802 4.64% 445,632 5,972 5.24% 360,000 4,841 5.26%Subordinated debentures 233,419 3,636 6.23% 233,313 3,616 6.20% 232,994 3,308 5.68%Junior subordinated debentures 48,839 701 5.62% 48,806 693 5.56% 48,710 708 5.68%Total interest-bearing liabilities$6,650,971 $60,437 3.61% $6,634,553 $65,699 3.93% $6,090,440 $56,513 3.68% Net interest income (1) $70,902 $69,266 $63,690 Net interest margin (2) 2.95% 2.90% 2.90%Net interest margin (TEY) (Non-GAAP) (1) (2) (3) 3.43% 3.37% 3.32%Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) 3.40% 3.34% 3.29% For the Year Ended December 31, 2024 December 31, 2023 Average BalanceInterest Earned or PaidAverage Yield or Cost Average BalanceInterest Earned or PaidAverage Yield or Cost (dollars in thousands) Fed funds sold$12,788 $692 5.33% $19,110 $998 5.22% Interest-bearing deposits at financial institutions 119,255 6,077 5.10% 80,924 4,137 5.11% Investment securities - taxable 377,039 17,216 4.55% 346,579 14,927 4.30% Investment securities - nontaxable (1) 745,502 41,843 5.61% 611,924 28,272 4.62% Restricted investment securities 39,293 2,991 7.49% 39,273 2,346 5.89% Loans (1) 6,764,754 449,570 6.65% 6,337,551 390,967 6.17% Total earning assets (1)$8,058,631 $518,389 6.43% $7,435,361 $441,647 5.94% Interest-bearing deposits$4,700,762 $161,584 3.44% $4,191,913 $121,662 2.90% Time deposits 1,153,407 51,547 4.47% 1,010,827 37,784 3.74% Short-term borrowings 1,850 98 5.24% 2,781 152 6.44% Federal Home Loan Bank advances 375,214 19,751 5.18% 323,904 16,740 5.10% Subordinated debentures 233,260 14,314 6.14% 232,837 13,230 5.68% Junior subordinated debentures 48,791 2,775 5.59% 48,662 2,836 5.75% Total interest-bearing liabilities$6,513,284 $250,069 3.83% $5,810,924 $192,404 3.31% Net interest income (1) $268,320 $249,243 Net interest margin (2) 2.88% 2.97% Net interest margin (TEY) (Non-GAAP) (1) (2) (3) 3.33% 3.35% Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3) 3.31% 3.32% (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% effective federal 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 December 31,September 30,June 30,March 31,December 31, 20242024202420242023 (dollars in thousands, except per share data) ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES Beginning balance$86,321 $87,706 $84,470 $87,200 $87,669 Change in ACL for transfer of loans to LHFS 93 (1,812) 498 (3,377) 266 Credit loss expense 6,832 3,828 4,343 3,736 2,519 Loans/leases charged off (4,787) (3,871) (1,751) (3,560) (3,354)Recoveries on loans/leases previously charged off 1,382 470 146 471 100 Ending balance$ 89,841 $ 86,321 $ 87,706 $ 84,470 $ 87,200 NONPERFORMING ASSETS Nonaccrual loans/leases$40,080 $33,480 $33,546 $29,439 $32,753 Accruing loans/leases past due 90 days or more 4,270 1,298 87 142 86 Total nonperforming loans/leases 44,350 34,778 33,633 29,581 32,839 Other real estate owned 661 369 369 784 1,347 Other repossessed assets 543 542 512 962 - Total nonperforming assets$ 45,554 $ 35,689 $ 34,514 $ 31,327 $ 34,186 ASSET QUALITY RATIOS Nonperforming assets / total assets 0.50% 0.39% 0.39% 0.36% 0.40%ACL for loans and leases / total loans/leases held for investment 1.32% 1.30% 1.33% 1.33% 1.33%ACL for loans and leases / nonperforming loans/leases 202.57% 248.21% 260.77% 285.55% 265.54%Net charge-offs as a % of average loans/leases 0.05% 0.05% 0.02% 0.05% 0.05% INTERNALLY ASSIGNED RISK RATING (1) (2) Special mention$73,636 $80,121 $85,096 $111,729 $125,308 Substandard (3) 84,930 70,022 80,345 70,841 70,425 Doubtful (3) - - - - - Total Criticized loans (4)$158,566 $150,143 $165,441 $182,570 $195,733 Classified loans as a % of total loans/leases (3) 1.25% 1.03% 1.17% 1.07% 1.08%Total Criticized loans as a % of total loans/leases (4) 2.34% 2.20% 2.41% 2.75% 2.99% (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 EndedFor the Year Ended December 31, September 30, December 31, December 31, December 31,SELECT FINANCIAL DATA - SUBSIDIARIES 2024 2024 2023 2024 2023 (dollars in thousands) TOTAL ASSETS Quad City Bank and Trust (1) $2,588,587 $2,552,962 $2,448,957 m2 Equipment Finance, LLC 310,915 349,166 345,682 Cedar Rapids Bank and Trust 2,614,570 2,625,943 2,419,146 Community State Bank 1,531,559 1,519,585 1,426,202 Guaranty Bank 2,342,958 2,360,301 2,281,296 TOTAL DEPOSITS Quad City Bank and Trust (1) $2,126,566 $2,205,465 $1,878,375 Cedar Rapids Bank and Trust 1,882,487 1,765,964 1,748,516 Community State Bank 1,256,938 1,269,147 1,169,921 Guaranty Bank 1,824,139 1,778,453 1,771,371 TOTAL LOANS & LEASES Quad City Bank and Trust (1) $2,048,926 $2,090,856 $1,983,679 m2 Equipment Finance, LLC 320,237 353,259 350,641 Cedar Rapids Bank and Trust 1,761,467 1,743,809 1,698,447 Community State Bank 1,159,389 1,161,805 1,099,262 Guaranty Bank 1,814,622 1,832,331 1,762,027 TOTAL LOANS & LEASES / TOTAL DEPOSITS Quad City Bank and Trust (1) 96% 95% 106% Cedar Rapids Bank and Trust 94% 99% 97% Community State Bank 92% 92% 94% Guaranty Bank 99% 103% 99% TOTAL LOANS & LEASES / TOTAL ASSETS Quad City Bank and Trust (1) 79% 82% 81% Cedar Rapids Bank and Trust 67% 66% 70% Community State Bank 76% 76% 77% Guaranty Bank 77% 78% 77% ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT Quad City Bank and Trust (1) 1.49% 1.49% 1.48% m2 Equipment Finance, LLC 4.22% 4.11% 3.80% Cedar Rapids Bank and Trust 1.44% 1.38% 1.39% Community State Bank 0.98% 1.06% 1.23% Guaranty Bank 1.25% 1.14% 1.18% RETURN ON AVERAGE ASSETS Quad City Bank and Trust (1) 1.09% 0.76% 0.67% 0.88% 0.92%Cedar Rapids Bank and Trust 3.12% 2.52% 3.78% 2.92% 3.17%Community State Bank 1.30% 1.46% 1.11% 1.32% 1.34%Guaranty Bank 0.91% 1.28% 1.41% 1.12% 1.16% NET INTEREST MARGIN PERCENTAGE (2) Quad City Bank and Trust (1) 3.53% 3.50% 3.41% 3.43% 3.37%Cedar Rapids Bank and Trust 3.95% 3.88% 3.84% 3.84% 3.83%Community State Bank 3.77% 3.76% 3.74% 3.75% 3.87%Guaranty Bank (3) 3.18% 3.12% 3.07% 3.07% 3.18% ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET INTEREST MARGIN, NET Cedar Rapids Bank and Trust $- $- $- $- $(8)Community State Bank (1) (1) (1) (4) 67 Guaranty Bank 504 496 706 1,698 2,243 QCR Holdings, Inc. (4) (32) (32) (32) (129) (129) (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% effective 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 2.97% for the quarter ended December 31, 2024, 2.94% for the quarter ended September 30, 2024 and 2.95% for the quarter ended December 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 December 31, September 30, June 30, March 31, December 31,GAAP TO NON-GAAP RECONCILIATIONS 2024 2024 2024 2024 2023 (dollars in thousands, except per share data)TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1) Stockholders' equity (GAAP) $997,387 $976,620 $936,319 $907,342 $886,596 Less: Intangible assets 149,657 150,347 151,468 152,158 152,848 Tangible common equity (non-GAAP) $847,730 $826,273 $784,851 $755,184 $733,748 Total assets (GAAP) $9,026,030 $9,088,565 $8,871,991 $8,599,549 $8,538,894 Less: Intangible assets 149,657 150,347 151,468 152,158 152,848 Tangible assets (non-GAAP) $8,876,373 $8,938,218 $8,720,523 $8,447,391 $8,386,046 Tangible common equity to tangible assets ratio (non-GAAP) 9.55% 9.24% 9.00% 8.94% 8.75% (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 Year Ended December 31, September 30, June 30, March 31, December 31, December 31, December 31,ADJUSTED NET INCOME (1) 2024 2024 2024 2024 2023 2024 2023 (dollars in thousands, except per share data) Net income (GAAP) $30,225 $27,785 $29,114 $26,726 $32,855 $113,850 $113,558 Less non-core items (post-tax) (2): Income: Securities gains (losses), net - - - - - - (356)Fair value gain (loss) on derivatives, net (2,594) (542) (145) (144) (460) (3,425) (997)Total non-core income (non-GAAP) $(2,594) $(542) $(145) $(144) $(460) $(3,425) $(1,353) Expense: Goodwill impairment - 431 - - - 431 - Post-acquisition compensation, transition and integration costs - - - - - - 164 Restructuring expense - 1,544 - - - 1,544 - Total non-core expense (non-GAAP) $- $1,975 $- $- $- $1,975 $164 Adjusted net income (non-GAAP) (1) $ 32,819 $ 30,302 $ 29,259 $ 26,870 $ 33,315 $ 119,250 $ 115,075 ADJUSTED EARNINGS PER COMMON SHARE (1) Adjusted net income (non-GAAP) (from above) $32,819 $30,302 $29,259 $26,870 $33,315 $119,250 $115,075 Weighted average common shares outstanding 16,871,652 16,846,200 16,814,814 16,783,348 16,734,080 16,829,004 16,732,406 Weighted average common and common equivalent shares outstanding 17,024,481 16,982,400 16,921,854 16,910,675 16,875,952 16,959,853 16,866,391 Adjusted earnings per common share (non-GAAP): Basic $ 1.95 $ 1.80 $ 1.74 $ 1.60 $ 1.99 $ 7.09 $ 6.88 Diluted $ 1.93 $ 1.78 $ 1.73 $ 1.59 $ 1.97 $ 7.03 $ 6.82 ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1) Adjusted net income (non-GAAP) (from above) $32,819 $30,302 $29,259 $26,870 $33,315 $119,250 $115,075 Average Assets $9,050,280 $8,968,653 $8,776,002 $8,550,855 $8,535,732 $8,837,393 $8,165,805 Adjusted return on average assets (annualized) (non-GAAP) 1.45% 1.35% 1.33% 1.26% 1.56% 1.35% 1.41%Adjusted return on average equity (annualized) (non-GAAP) 13.19% 12.60% 12.69% 11.90% 15.64% 12.61% 13.94% NET INTEREST MARGIN (TEY) (3) Net interest income (GAAP) $61,204 $59,722 $56,163 $54,699 $55,736 $231,788 $221,006 Plus: Tax equivalent adjustment (4) 9,698 9,544 8,914 8,377 7,954 36,532 28,237 Net interest income - tax equivalent (Non-GAAP) $70,902 $69,266 $65,077 $63,076 $63,690 $268,320 $249,243 Less: Acquisition accounting net accretion 471 463 268 363 673 1,565 2,173 Adjusted net interest income $70,431 $68,803 $64,809 $62,713 $63,017 $266,755 $247,070 Average earning assets $8,241,190 $8,183,196 $7,999,044 $7,807,720 $7,631,035 $8,058,631 $7,435,361 Net interest margin (GAAP) 2.95% 2.90% 2.82% 2.82% 2.90% 2.88% 2.97%Net interest margin (TEY) (Non-GAAP) 3.43% 3.37% 3.27% 3.25% 3.32% 3.33% 3.35%Adjusted net interest margin (TEY) (Non-GAAP) 3.40% 3.34% 3.26% 3.24% 3.29% 3.31% 3.32% EFFICIENCY RATIO (5) Noninterest expense (GAAP) $53,499 $53,565 $49,888 $50,690 $60,938 $207,642 $210,531 Net interest income (GAAP) $61,204 $59,722 $56,163 $54,699 $55,736 $231,788 $221,006 Noninterest income (GAAP) 30,625 27,157 30,889 26,858 47,729 115,529 132,684 Total income $91,829 $86,879 $87,052 $81,557 $103,465 $347,317 $353,690 Efficiency ratio (noninterest expense/total income) (Non-GAAP) 58.26% 61.65% 57.31% 62.15% 58.90% 59.78% 59.52%Adjusted efficiency ratio (core noninterest expense/core total income) (Non-GAAP) 56.25% 58.45% 57.19% 62.01% 58.57% 58.37% 59.18% (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 non-recurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.(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.

QCR Holdings, Inc. Announces Fourth Quarter Results and Record Net Income of $113.9 Million for the Full Year 2024

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