Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______to________ Commission file number 0-22208 QCR HOLDINGS, INC. (Exact name of Registrant as specified in its charter) Delaware 42-1397595 (State or ot ...

Financial Data and Key Metrics Changes - The company reported adjusted net income of $26.9 million, or $1.59 per diluted share, with a return on average assets (ROAA) of 1.25% and return on average equity (ROAE) of 11.83% for the quarter, indicating strong performance relative to peers [3][11][13] - Total loans grew by 6.4% on an annualized basis, translating to a net growth of $105 million, primarily driven by the low-income housing tax credit (LIHTC) lending program [43][50] - Core deposits increased by $316 million during the quarter, representing over 20% annualized growth, which is crucial for sustaining future loan growth [21][43] Business Line Data and Key Metrics Changes - Non-interest income for the first quarter was $26.9 million, down from a record $47.7 million in the previous quarter, with capital markets revenue at $16.5 million benefiting from strong demand for affordable housing [27][59] - The wealth management business generated $4.3 million in revenue, reflecting a 16% annualized increase from the previous quarter, with significant growth anticipated in new markets [58][102] Market Data and Key Metrics Changes - The company maintained a low level of uninsured and uncollateralized deposits at 20% of total deposits, indicating strong liquidity management [52] - The ratio of non-performing assets (NPAs) to total assets improved to 36 basis points, remaining below historical averages, showcasing excellent asset quality [13][60] Company Strategy and Development Direction - The company is focused on its 9-6-5 strategy, aiming to sustain top-tier financial performance across key metrics such as earnings per share and tangible book value per share growth [17][49] - Future loan growth is expected to be funded through core deposit growth and ongoing securitizations, with a commitment to enhancing employee and client experiences through technology investments [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the economic resilience of their markets, noting no significant signs of weakness among clients [45][46] - The company is well-positioned to navigate potential rate cuts, with expectations of benefiting from improved margins if rates decrease [110] Other Important Information - The tangible common equity ratio increased to 8.94%, driven by strong earnings, with a goal to reach the low nines for better capital positioning [30][125] - The effective tax rate for the quarter was 4%, significantly lower than the previous quarter, aided by tax-exempt loan and bond portfolios [31][32] Q&A Session Summary Question: What is the impact of upcoming LIHTC securitizations? - Management expects a $275 million securitization to occur in the third quarter, which will enhance liquidity and positively impact net interest margin [35][75] Question: How are deposit costs evolving? - There has been a reduction in non-interest bearing deposits, but management noted a stabilization in deposit pricing, with expectations of maintaining competitive rates [68][76] Question: What is the outlook for loan growth? - The company maintains confidence in achieving 4% to 6% growth with securitization and 8% to 10% without it, supported by strong early quarter performance [90] Question: How is the wealth management business performing? - The wealth management segment is growing well, with an 11% increase in assets under management and a strong client acquisition rate [102] Question: What are the priorities for capital management? - The focus is on strengthening the balance sheet and capital ratios before considering stock buybacks or dividends, with M&A being a lower priority currently [125]

Financial Performance - Net income for Q1 2024 was $26.7 million, with diluted EPS of $1.58, down from $32.9 million and $1.95 in Q4 2023[2] - Adjusted net income (non-GAAP) for Q1 2024 was $26.9 million, compared to $33.3 million in Q4 2023[3] - Net income for the quarter was $26,726,000, down from $32,855,000 in the prior quarter, representing a decrease of 18.6%[39] - Basic EPS for the quarter was $1.59, compared to $1.96 in the previous quarter, a decline of 18.9%[39] - Adjusted net income (non-GAAP) for Q1 2024 was $26,855,000, a decrease of 19.5% from $33,315,000 in Q4 2023[64] - Adjusted earnings per common share (non-GAAP) for Q1 2024 were $1.60 (basic) and $1.59 (diluted), compared to $1.99 (basic) and $1.97 (diluted) in Q4 2023[64] Income and Expenses - Noninterest income totaled $26.9 million, down from $47.7 million in Q4 2023, with capital markets revenue at $16.5 million[12] - Total noninterest income decreased to $26,858,000 from $47,729,000 in the previous quarter, a decline of 43.8%[39] - Total noninterest expense decreased to $50,690,000 from $60,938,000 in the previous quarter, a reduction of 16.8%[39] - Noninterest expense (GAAP) for Q1 2024 was $50,690,000, a decrease from $60,938,000 in Q4 2023[65] Asset and Deposit Growth - Total assets increased to $8,599,549 thousand as of March 31, 2024, compared to $8,538,894 thousand at December 31, 2023, reflecting a growth of 0.7%[34] - Total deposits rose to $6,806,775 thousand, up 4.5% from $6,514,005 thousand at December 31, 2023[35] - Total assets for Quad City Bank and Trust increased to $2,618,727,000 from $2,448,957,000 in the previous quarter, representing a growth of 6.9%[55] - Total deposits at Quad City Bank and Trust rose to $2,161,515,000, up 14.9% from $1,878,375,000 in the previous quarter[55] Loan and Lease Performance - Total loans and leases grew by $104.9 million to $6.6 billion, representing a 6.4% annualized growth[19] - The company maintains a loan growth target of 8% to 10% for the full year 2024[21] - The loan portfolio included significant LIHTC balances totaling $1.9 billion as of March 31, 2024[36] - Total loans and leases for Quad City Bank and Trust increased to $2,046,038,000, a rise of 3.1% from $1,983,679,000 in the previous quarter[55] Asset Quality - Nonperforming assets decreased by 8.5% to $31.3 million, improving the ratio of NPAs to total assets to 0.36%[22] - The allowance for credit losses decreased to $84,470 thousand from $87,200 thousand, indicating improved asset quality[34] - Nonperforming assets totaled $31,327 thousand, representing 0.36% of total assets, an improvement from 0.40% in the previous quarter[52] - The allowance for credit losses on loans/leases decreased to $84,470 thousand from $87,200 thousand in the previous quarter[52] Capital and Ratios - The total risk-based capital ratio was 14.30%, with a common equity tier 1 ratio of 9.91% as of March 31, 2024[25] - Tangible book value per share (non-GAAP) increased by $1.12, or 10.2% annualized[26] - Total stockholders' equity increased to $907,342 thousand, up from $886,596 thousand, marking a growth of 2.8%[34] - Total stockholders' equity rose to $903,371,000, an increase of 6.00% from $852,163,000 in the prior quarter[43] Efficiency and Returns - The efficiency ratio (Non-GAAP) increased to 62.15% from 58.90% in the previous quarter, indicating a decline in operational efficiency[42] - Return on average assets (annualized) decreased to 1.25% from 1.53% in the previous quarter[42] - Adjusted return on average assets (annualized) decreased to 1.26% in Q1 2024 from 1.56% in Q4 2023[65] - The net interest margin (TEY) (non-GAAP) for Q1 2024 was 3.25%, a decrease from 3.32% in Q4 2023[65]

Table of Contents U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 0-22208 QCR HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 42-1397595 (State of incorporation) (I.R.S. Employer Identification No.) 3551 7th S ...

QCR Holdings, Inc. (NASDAQ:QCRH) Q4 2023 Earnings Conference Call January 24, 2024 11:00 AM ET Company Participants Larry Helling - Chief Executive Officer Todd Gipple - President and Chief Financial Officer Conference Call Participants Nathan Race - Piper Sandler Damon DelMonte - KBW Brian Martin - Janney Montgomery Scott Jeff Rulis - DA Davidson Daniel Tamayo - Raymond James Nathan Race - Piper Sandler Operator Greetings and welcome to the QCR Holdings Incorporated Earnings Conference Call for the Fourth ...

Part I: Financial Information Presents unaudited consolidated financial statements and management's discussion and analysis [Item 1: Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201%20Consolidated%20Financial%20Statements%20(Unaudited)) Unaudited consolidated financial statements for QCR Holdings, Inc., detailing balance sheets, income, equity, and cash flows [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Presents the Company's financial position, detailing assets, liabilities, and stockholders' equity | Metric | Sep 30, 2023 (in thousands) | Dec 31, 2022 (in thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | | Total Assets | **$8,540,057** | **$7,948,837** | | Total Liabilities | **$7,711,674** | **$7,176,113** | | Total Stockholders' Equity | **$828,383** | **$772,724** | - Total assets increased by **$591.2 million** (**7.4%**) from December 31, 2022, to September 30, 2023, primarily driven by growth in net loans/leases and derivatives[12](index=12&type=chunk) - Total deposits increased by **$510.6 million** (**8.5%**) from December 31, 2022, to September 30, 2023[12](index=12&type=chunk) [Consolidated Statements of Income (Three Months Ended September 30, 2023 and 2022)](index=5&type=section&id=Consolidated%20Statements%20of%20Income%20(Three%20Months%20Ended%20September%2030%2C%202023%20and%202022)) Details the Company's revenues, expenses, and net income for the three months ended September 30 | Metric (in thousands) | Q3 2023 | Q3 2022 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :---------- | | Total Interest Income | **$108,568** | **$79,267** | **$29,301** | **37.0%** | | Total Interest Expense| **$53,313** | **$18,498** | **$34,815** | **188.2%** | | Net Interest Income | **$55,255** | **$60,769** | **$(5,514)** | **(9.1)%** | | Provision for Credit Losses | **$3,806** | **$0** | **$3,806** | N/A | | Total Noninterest Income | **$26,593** | **$21,095** | **$5,498** | **26.1%** | | Total Noninterest Expense | **$51,081** | **$47,746** | **$3,335** | **7.0%** | | Net Income | **$25,121** | **$29,294** | **$(4,173)** | **(14.2)%** | | Basic EPS | **$1.50** | **$1.73** | **$(0.23)** | **(13.3)%** | | Diluted EPS | **$1.49** | **$1.71** | **$(0.22)** | **(12.9)%** | - Net interest income decreased by **9.1%** year-over-year in Q3 2023, primarily due to a significant increase in interest expense (up **188.2%**) outpacing the growth in interest income (up **37.0%**)[14](index=14&type=chunk) - Noninterest income saw a substantial increase of **26.1%** in Q3 2023, driven by capital markets revenue and earnings on bank-owned life insurance[14](index=14&type=chunk) [Consolidated Statements of Income (Nine Months Ended September 30, 2023 and 2022)](index=7&type=section&id=Consolidated%20Statements%20of%20Income%20(Nine%20Months%20Ended%20September%2030%2C%202023%20and%202022)) Details the Company's revenues, expenses, and net income for the nine months ended September 30 | Metric (in thousands) | 9M 2023 | 9M 2022 | Change ($) | Change (%) | | :-------------------- | :---------- | :---------- | :---------- | :---------- | | Total Interest Income | **$301,162** | **$198,534** | **$102,628** | **51.7%** | | Total Interest Expense| **$135,892** | **$32,632** | **$103,260** | **316.4%** | | Net Interest Income | **$165,270** | **$165,902** | **$(632)** | **(0.4)%** | | Provision for Credit Losses | **$11,340** | **$8,284** | **$3,056** | **36.9%** | | Total Noninterest Income | **$84,955** | **$59,510** | **$25,445** | **42.8%** | | Total Noninterest Expense | **$149,593** | **$140,319** | **$9,274** | **6.6%** | | Net Income | **$80,703** | **$68,160** | **$12,543** | **18.4%** | | Basic EPS | **$4.82** | **$4.25** | **$0.57** | **13.4%** | | Diluted EPS | **$4.79** | **$4.20** | **$0.59** | **14.0%** | - For the nine months ended September 30, 2023, net income increased by **18.4%** year-over-year, despite a slight decrease in net interest income, primarily driven by a significant increase in noninterest income (up **42.8%**)[18](index=18&type=chunk) - Interest expense surged by **316.4%** for the nine-month period, reflecting the rising interest rate environment and increased cost of funds[18](index=18&type=chunk) [Consolidated Statements of Comprehensive Income](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Reports net income and other comprehensive income/loss, reflecting changes in equity from non-owner sources | Metric (in thousands) | Q3 2023 | Q3 2022 | 9M 2023 | 9M 2022 | | :-------------------- | :---------- | :---------- | :---------- | :---------- | | Net Income | **$25,121** | **$29,294** | **$80,703** | **$68,160** | | Other Comprehensive Loss, net of tax | **$(19,415)** | **$(24,783)** | **$(16,426)** | **$(76,409)** | | Comprehensive Income (Loss) | **$5,706** | **$4,511** | **$64,277** | **$(8,249)** | - Comprehensive income for the nine months ended September 30, 2023, was **$64.3 million**, a significant improvement from a comprehensive loss of **$8.2 million** in the prior year, largely due to a reduced other comprehensive loss[19](index=19&type=chunk) - Unrealized losses on securities available for sale and derivatives contributed to other comprehensive loss, though the magnitude of these losses decreased significantly in 2023 compared to 2022[19](index=19&type=chunk) [Consolidated Statements of Changes in Stockholders' Equity](index=9&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity) Outlines changes in common stock, retained earnings, and accumulated other comprehensive income/loss | Metric (in thousands) | Dec 31, 2022 | Sep 30, 2023 | | :-------------------- | :----------- | :----------- | | Common Stock | **$16,796** | **$16,732** | | Additional Paid-In Capital | **$370,712** | **$369,833** | | Retained Earnings | **$450,114** | **$523,142** | | Accumulated Other Comprehensive (Loss) | **$(64,898)** | **$(81,324)** | | Total Stockholders' Equity | **$772,724** | **$828,383** | - Total stockholders' equity increased by **$55.6 million** from December 31, 2022, to September 30, 2023, primarily driven by net income, partially offset by an increase in accumulated other comprehensive loss[21](index=21&type=chunk) - The company repurchased and canceled **175,000 shares** of common stock during the nine months ended September

QCR Holdings, Inc. (NASDAQ:QCRH) Q3 2023 Earnings Conference Call October 26, 2023 11:00 AM ET Company Participants Larry Helling - Chief Executive Officer Todd Gipple - President and Chief Financial Officer Conference Call Participants Damon DelMonte - KBW Nathan Race - Piper Sandler Brian Martin - Janney Daniel Tamayo - Raymond James Operator Greetings and welcome to the QCR Holdings Inc. Earnings Conference Call for the Third Quarter of 2023. Yesterday after market close the company distributed its third ...

)CR HOLDINGS, INC. 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 forwardlooking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies(including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics ...

Financial Performance - Net income for the three months ended June 30, 2023, was $28,425 thousand, a 86.1% increase compared to $15,242 thousand for the same period in 2022[13] - Basic earnings per common share increased to $1.70 for the three months ended June 30, 2023, compared to $0.88 for the same period in 2022, reflecting a significant growth of 93.2%[13] - Net income for the six months ended June 30, 2023, was $55,582,000, up from $38,866,000 in 2022, reflecting a 42.9% growth[16] - Basic earnings per common share increased to $3.32 in 2023 from $2.36 in 2022, a growth of 40.6%[15] - Comprehensive income for the six months ended June 30, 2023, was $58,571,000, compared to a loss of $12,760,000 in 2022[16] - Net income for the three months ended June 30, 2023, was $28,425,000, a 86.2% increase from $15,242,000 in the same period of 2022[81] Asset and Liability Growth - Total assets increased to $8,226,673 thousand as of June 30, 2023, up from $7,948,837 thousand at December 31, 2022, representing a growth of 3.5%[11] - The total liabilities increased to $7,403,984 thousand as of June 30, 2023, from $7,176,113 thousand at December 31, 2022, representing a growth of 3.2%[11] - Total deposits increased to $6,606,720 thousand as of June 30, 2023, compared to $5,984,217 thousand at December 31, 2022, an increase of 10.4%[11] - Cash and due from banks increased to $84,084 thousand as of June 30, 2023, compared to $59,723 thousand at December 31, 2022, a rise of 40.9%[11] Income and Expense Analysis - Total noninterest income rose to $32,520 thousand for the three months ended June 30, 2023, up from $22,782 thousand in the same period of 2022, marking a 42.7% increase[13] - Total noninterest expenses increased to $98,512,000 in 2023 from $92,573,000 in 2022, a rise of 6.4%[15] - Interest payments increased significantly to $78,966,000 in 2023 from $13,779,000 in 2022, reflecting a rise in interest expenses[20] - The company reported a total interest and dividend income of $98,377 thousand for the three months ended June 30, 2023, compared to $68,205 thousand in the same period of 2022, an increase of 44.2%[13] Credit Quality and Provisions - Provision for credit losses decreased to $3,606 thousand for the three months ended June 30, 2023, down from $11,200 thousand in the same period of 2022, indicating improved credit quality[13] - The company reported a provision for credit losses of $7,534,000 in 2023, slightly down from $8,284,000 in 2022, a decrease of 9.0%[15] - The allowance for credit losses decreased to $85.8 million as of June 30, 2023, from $87.7 million as of December 31, 2022[49] - The percentage of current loans in the total loan/lease portfolio was 99.30% as of June 30, 2023, compared to 99.71% as of December 31, 2022[51] Loan and Lease Portfolio - The loan/lease portfolio totaled $6.379 billion as of June 30, 2023, an increase from $6.139 billion as of December 31, 2022, representing a growth of approximately 3.9%[49] - The company held $1.308 billion in construction and land development loans as of June 30, 2023, up from $1.192 billion at the end of 2022, indicating a growth of approximately 9.7%[49] - The total for construction and land development loans was $16,507 thousand, with all loans classified as performing[66] - The total for CRE - owner occupied loans is $609,717 thousand, with a mix of performing and nonperforming loans[65] Capital and Ratios - The Company maintained a total risk-based capital ratio of 14.69% as of June 30, 2023, exceeding the minimum requirement of 8.00%[98] - Tier 1 risk-based capital ratio was reported at 10.38% as of June 30, 2023, above the required minimum of 6.00%[98] - The total risk-based capital ratio as of December 31, 2022, was 14.28%, exceeding the required minimum of 8.00%[99] Interest Rate Management - The Company has $300 million in deposits hedged against rising interest rates with interest rate caps, with an initial premium of $3.5 million paid[74] - The interest rate collar for loans has a notional amount of $50,000 thousand with a cap strike rate of 4.40% and a floor strike rate of 2.44%[74] - The total balance of interest rate swaps decreased to $159,172 thousand as of June 30, 2023, from $166,614 thousand as of December 31, 2022[73] Noninterest Income and Fees - Total noninterest income increased by 51.9% to $58.4 million for the first half of 2023 compared to $38.4 million in the same period of 2022, with significant contributions from capital markets revenue and trust fees[152] - Capital markets revenue surged by 72.9% to $22.5 million in the second quarter of 2023 compared to $13.0 million in the same period of 2022[152] - Trust fees increased by 14% in the second quarter of 2023 compared to the same period in 2022, reflecting an increase in assets under management by $569.9 million in the second quarter[152] Operational Efficiency - The efficiency ratio (non-GAAP) improved to 58.01% for the quarter ended June 30, 2023, from 59.02% in the previous quarter and 66.01% a year ago[124] - Noninterest expense (GAAP) was $49.7 million for the quarter ended June 30, 2023, compared to $48.8 million in the previous quarter and $54.2 million a year ago[124] Market and Economic Conditions - The Company aims to generate loan and lease growth of 9% per year, funded by core deposits, as part of its long-term strategic financial metrics[109] - The Company plans to continue growing quality loans and leases while expanding its private placement tax-exempt securities portfolio to maximize yield and minimize risks[142]

Financial Data and Key Metrics Changes - The company reported net income of $28.4 million or $1.69 per diluted share, with an annualized increase of 18.7% [26][70] - Return on Average Assets (ROAA) was 1.44% and Return on Average Equity (ROAE) was 13.97%, both metrics near the high end of the peer group [26] - Adjusted net interest income decreased by $2.4 million to $59.5 million, with an adjusted net interest margin (NIM) of 3.28%, down 19 basis points from the previous quarter [70][71] - Non-interest income increased by $6.7 million, or 26%, driven by capital markets revenue [47] Business Line Data and Key Metrics Changes - Total loans grew by 12.2% on an annualized basis, primarily due to the low-income housing tax credit (LIHTC) lending program [26][66] - Core deposits, excluding short-term broker deposits, increased by $339 million, representing a 23% annualized growth [44][64] - Capital markets revenue was $22.5 million, up from $17 million in the first quarter, benefiting from stabilization in supply chain and construction costs [47][72] Market Data and Key Metrics Changes - The company experienced a modest increase in non-performing assets (NPAs) to $26.1 million, or 32 basis points of total assets, which remains near historic lows [74] - The reserve for credit losses was maintained at 1.41% of total loans, indicating strong asset quality [37][51] Company Strategy and Development Direction - The company plans to increase the size of planned securitizations of LIHTC loans to achieve improved pricing and execution, expecting to close transactions early in the fourth quarter [41][125] - The focus remains on growing core deposits and managing liquidity effectively, with a target for capital ratios in the top quartile of the peer group [28][35] - The company aims to leverage its specialty finance business, particularly in LIHTC lending, which is viewed as countercyclical and resilient in economic downturns [67][126] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the economic resiliency of their markets, noting no significant signs of weakness [65] - The guidance for loan growth for the remainder of the year was increased to a range of 9% to 12% on an annualized basis [42] - The company anticipates continued pressure on margins due to a liability-sensitive balance sheet but expects this pressure to lessen in the coming quarters [71][110] Other Important Information - The effective tax rate for the quarter was 12.2%, up from 9.3% in the first quarter, primarily due to a higher mix of taxable income [52][77] - The company maintains a disciplined approach to expenses, reaffirming non-interest expense guidance for the third quarter to be in the range of $48 million to $51 million [50][120] Q&A Session Summary Question: What is the outlook on capital markets revenues? - Management expects capital markets revenue to be in the range of $45 million to $55 million over the next four quarters, with a strong pipeline [80][120] Question: How is the company managing its loan growth and credit quality? - The company is focused on maintaining strong reserves and managing credit quality, with a slight uptick in non-performing loans attributed to a few smaller companies under pressure [99][104] Question: What is the strategy for LIHTC loans and securitization? - The company plans to securitize approximately $300 million in LIHTC loans in the fourth quarter, with a focus on managing liquidity and capital effectively [125][145]