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 June 30, 2021 ☐ 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) (State or other jurisdiction of i ...

QCR Holdings, Inc. (NASDAQ:QCRH) Q2 2021 Earnings Conference Call July 27, 2021 11:00 AM ET Company Participants Larry Helling - CEO & Director Todd Gipple - President, COO, CFO & Director Conference Call Participants Jeff Rulis - D.A. Davidson Nathan Race - Piper Sandler Evan Lisle - Janney Montgomery Scott Operator Greetings, and welcome to the QCR Holdings, Inc. Earnings Conference Call for the Second Quarter of 2021. Yesterday, after market close, the company distributed its second quarter earnings pres ...

Part I FINANCIAL INFORMATION [Item 1 Consolidated Financial Statements (Unaudited)](index=4&type=section&id=Item%201%20Consolidated%20Financial%20Statements%20(Unaudited)) Presents unaudited consolidated financial statements for QCR Holdings, Inc. as of March 31, 2021 Consolidated Balance Sheet Highlights (As of March 31, 2021 vs. December 31, 2020) | Metric | March 31, 2021 (in thousands) | December 31, 2020 (in thousands) | | :--- | :--- | :--- | | **Total Assets** | **$5,645,147 thousand** | **$5,682,797 thousand** | | Net Loans/Leases Receivable | $4,279,220 thousand | $4,166,753 thousand | | Total Securities | $799,825 thousand | $838,131 thousand | | Total Deposits | $4,631,782 thousand | $4,599,137 thousand | | **Total Liabilities** | **$5,036,428 thousand** | **$5,089,004 thousand** | | **Total Stockholders' Equity** | **$608,719 thousand** | **$593,793 thousand** | Consolidated Income Statement Highlights (For the Three Months Ended March 31) | Metric | 2021 (in thousands) | 2020 (in thousands) | | :--- | :--- | :--- | | Net Interest Income | $41,975 thousand | $37,698 thousand | | Provision for Credit Losses | $6,713 thousand | $8,367 thousand | | Noninterest Income | $23,489 thousand | $15,196 thousand | | **Net Income** | **$17,982 thousand** | **$11,228 thousand** | | **Diluted EPS** | **$1.12** | **$0.70** | [Note 1. Summary of Significant Accounting Policies](index=11&type=section&id=Note%201.%20Summary%20of%20Significant%20Accounting%20Policies) Details accounting policies, including CECL adoption on January 1, 2021, impacting retained earnings - The Company adopted ASU 2016-13 (CECL) on January 1, 2021, using a modified retrospective approach. This resulted in an after-tax decrease to retained earnings of **$937 thousand**[31](index=31&type=chunk) Impact of ASU 2016-13 Adoption on January 1, 2021 | Item | Impact (in thousands) | | :--- | :--- | | Decrease in Allowance for Credit Losses on Loans | ($8,102) | | Establishment of ACL on HTM Securities | $183 | | Establishment of ACL on OBS Credit Exposures | $9,117 | [Note 2. Investment Securities](index=31&type=section&id=Note%202.%20Investment%20Securities) Breaks down the $799.8 million investment securities portfolio, primarily municipal and mortgage-backed Investment Securities Portfolio (March 31, 2021) | Category | Amortized Cost (in thousands) | Fair Value (in thousands) | | :--- | :--- | :--- | | Securities Held to Maturity (HTM) | $453,126 thousand | $491,347 thousand | | Securities Available for Sale (AFS) | $340,726 thousand | $346,873 thousand | | **Total Securities** | **$793,852 thousand** | **$838,220 thousand** | - As of March 31, 2021, 101 out of 644 securities were in an unrealized loss position, with aggregate losses representing approximately **0.4%** of the portfolio's total amortized cost. Management believes these declines are temporary and does not intend to sell these securities before recovery[99](index=99&type=chunk) [Note 3. Loans/Leases Receivable](index=36&type=section&id=Note%203.%20Loans%2FLeases%20Receivable) Details the $4.36 billion loan and lease portfolio composition, credit quality, and COVID-19 modifications Loan Portfolio Composition (March 31, 2021) | Loan Category | Amount (in thousands) | % of Total | | :--- | :--- | :--- | | C&I (revolving & other) | $1,784,986 | 41% | | CRE (owner & non-owner occupied) | $1,071,854 | 25% | | Construction and land development | $607,798 | 14% | | Multi-family | $396,272 | 9% | | 1-4 family real estate | $368,927 | 8% | | Other (Leases, Consumer) | $131,214 | 3% | | **Total Gross Loans/Leases** | **$4,361,051** | **100%** | - **Nonperforming loans (NPLs) totaled $13.9 million**, or **0.32%** of the total loan portfolio, as of March 31, 2021. This is a slight decrease from **$13.9 million (0.33%)** at year-end 2020[115](index=115&type=chunk)[117](index=117&type=chunk) - As of March 31, 2021, **69 loan modifications totaling $6.9 million (0.16% of the total portfolio)** were on deferral under the company's Loan Relief Program (LRP) in response to COVID-19[141](index=141&type=chunk) [Note 9. Regulatory Capital Requirements](index=57&type=section&id=Note%209.%20Regulatory%20Capital%20Requirements) Outlines regulatory capital requirements, confirming the company is 'well capitalized' as of March 31, 2021 QCR Holdings, Inc. Capital Ratios (As of March 31, 2021) | Ratio | Actual | Requirement for 'Well Capitalized' | | :--- | :--- | :--- | | Total risk-based capital | 14.85% | > 10.00% | | Tier 1 risk-based capital | 11.31% | > 8.00% | | Tier 1 leverage | 10.10% | > 5.00% | | Common equity Tier 1 | 10.55% | > 6.50% | [Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations](index=59&type=section&id=Item%202%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Discusses Q1 2021 financial condition and operations, including COVID-19 impact and strategic developments - The company reported strong Q1 2021 results with **net income of $18.0 million and diluted EPS of $1.12**, a significant increase from **$11.2 million and $0.70** in Q1 2020[187](index=187&type=chunk) - The company continues to respond to the COVID-19 pandemic through its Loan Relief Program (LRP) and active participation as a lender in the Paycheck Protection Program (PPP), having processed **2,394 PPP loans for $451 million** as of March 31, 2021[184](index=184&type=chunk) [Results of Operations](index=76&type=section&id=Results%20of%20Operations) Analyzes Q1 2021 operations, highlighting growth in net interest and noninterest income, and expense changes - **Net interest income increased 11% YoY**, benefiting from **strong** loan growth and a significant reduction in the cost of funds to **0.63%** from **1.33%** in Q1 2020[191](index=191&type=chunk)[230](index=230&type=chunk) - **Noninterest income surged 55% YoY**, primarily driven by a **99% increase** in swap fee income, which reached **$13.6 million** in Q1 2021[191](index=191&type=chunk)[241](index=241&type=chunk)[245](index=245&type=chunk) - **Noninterest expense increased by 18% YoY**, mainly due to a **34% rise** in salaries and employee benefits related to higher incentive compensation from strong financial results[191](index=191&type=chunk)[254](index=254&type=chunk) [Financial Condition](index=87&type=section&id=Financial%20Condition) Reviews Q1 2021 financial condition, including loan growth, deposit changes, asset quality, and equity - **Core loans and leases (excluding PPP loans) grew at an annualized rate of 14.0%** during the first quarter of 2021[276](index=276&type=chunk) - Asset quality remains strong, with **Nonperforming Assets (NPAs) representing only 0.25% of total assets** at March 31, 2021[297](index=297&type=chunk)[298](index=298&type=chunk) Key Financial Condition Ratios | Ratio | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | NPAs to Total Assets | 0.25% | 0.26% | | ACL to Gross Loans/Leases | 1.88% | 1.98% | | TCE / TA Ratio (non-GAAP) | 9.42% | 9.08% | [Item 3 Quantitative and Qualitative Disclosures About Market Risk](index=104&type=section&id=Item%203%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Assesses interest rate risk using a simulation model, showing asset-sensitive position within policy limits Net Interest Income Sensitivity (Year 1) | Interest Rate Scenario | Policy Limit | Exposure as of March 31, 2021 | | :--- | :--- | :--- | | 200 basis point upward shift | (10.0)% | +2.7% | | 100 basis point downward shift | (10.0)% | (0.2)% | | 300 basis point upward shock | (30.0)% | +10.5% | [Item 4 Controls and Procedures](index=107&type=section&id=Item%204%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2021 - The CEO and CFO concluded that the company's **disclosure controls and procedures were effective** as of the end of the reporting period[351](index=351&type=chunk) Part II OTHER INFORMATION [Item 1 Legal Proceedings](index=108&type=section&id=Item%201%20Legal%20Proceedings) Reports no material pending legal proceedings beyond routine business litigation [Item 1A Risk Factors](index=108&type=section&id=Item%201A%20Risk%20Factors) No material changes to risk factors disclosed in the Annual Report on Form 10-K for December 31, 2020 [Item 2 Unregistered Sales of Equity Securities and Use of Proceeds](index=108&type=section&id=Item%202%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Share repurchase program remains suspended since March 2020 due to COVID-19 uncertainties - The company's share repurchase program remains suspended as of March 31, 2021, with **699,068 shares remaining authorized for repurchase**[357](index=357&type=chunk)[358](index=358&type=chunk)

Financial Data and Key Metrics Changes - Adjusted net income for Q1 2021 was $18.6 million, with diluted adjusted earnings per share at $1.16, reflecting a 50% year-over-year increase [10][12] - Core loans grew by 14% on an annualized basis, driven by strong production in both core commercial business and Specialty Finance Group [9][19] - Net interest income for the quarter was $42 million, down $1.7 million from Q4 2020, but static when excluding acquisition-related net accretion and PPP income [22][25] Business Line Data and Key Metrics Changes - Specialty Finance Group saw strong demand, particularly in municipal and tax credit finance, contributing to the overall loan growth [11][19] - Non-interest income was $23.5 million, including $13.6 million in swap fee income, down from $32 million in Q4 2020 [26] - Wealth management income increased nearly 13% on a linked quarter basis, driven by a $457 million increase in assets under management [28] Market Data and Key Metrics Changes - Core deposits grew by just over 3% on an annualized basis, with non-interest-bearing deposits increasing by $124 million or nearly 11% from the prior quarter [13][21] - The company managed to shift excess correspondent banking deposits off-balance sheet, maintaining $2.35 billion in total deposits under management [14][100] Company Strategy and Development Direction - The company aims for organic loan growth of 8% to 10% for the full year of 2021, consistent with a long-term goal of 9% [13][18] - Management is optimistic about the local markets as the economy reopens post-pandemic, positioning for profitable growth and value creation through organic means and strategic acquisitions [18][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in asset quality, with negligible net charge-offs and only $7 million in loan deferrals at the end of the quarter [16][31] - The company anticipates potential NIM compression of 1 to 3 basis points in Q2 due to low interest rates and excess liquidity [25][72] Other Important Information - The effective tax rate for the quarter was 16.5%, lower than the previous quarter due to a higher ratio of tax-exempt revenue [32] - The company continues to build capital through strong earnings, with a tangible common equity to tangible assets ratio improving to 9.67% [32] Q&A Session Summary Question: Swap income commissions - Todd Gipple explained that around 75% of swap income at the low-end of guidance would reach the bottom line, decreasing to 65%-70% at the higher end due to incentive compensation [39] Question: Loan growth momentum - Larry Helling noted broad-based growth in core business and strong client demand, particularly in manufacturing and assembly sectors, contributing to the adjusted loan growth guidance [41][43] Question: Provision and reserves outlook - Management indicated a prudent approach to reserves, expecting modest provision expenses in the coming quarters due to strong analytics and favorable economic conditions [52][56] Question: Capital deployment and buybacks - Larry Helling stated that the first priority is to fund growth with capital, followed by M&A opportunities, with buybacks considered when prudent [60][62] Question: Margin headwinds - Todd Gipple discussed potential headwinds for NIM due to declining loan yields and excess liquidity, while also highlighting efforts to manage costs [70][72] Question: PPP forgiveness timeline - Todd Gipple anticipated that most remaining PPP fees would be recognized by the end of the calendar year, with a significant portion expected in Q2 [84] Question: Off-balance sheet deposits economics - Todd Gipple explained the management of correspondent bank deposits and the modest fees associated with managing off-balance sheet funds, emphasizing liquidity access [97][100]

�� 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 00 00 00 00 00 00 00 000 0 0 C 0 HC C. VID-19 Exposure Q1 2021 FORWARD-LOOKING STATEMENTS A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies (including the impact of the new p ...

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, 2020. ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 0-22208 (Exact name of registrant as specified in its charter) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securit ...

QCR Holdings, Inc. (NASDAQ:QCRH) Q4 2020 Earnings Conference Call January 28, 2021 11:00 AM ET Company Participants Larry Helling - Chief Executive Officer Todd Gipple - President, Chief Operating Officer & Chief Financial Officer Conference Call Participants Jeff Rulis - D.A. Davidson Nathan Race - Piper Sandler Damon DelMonte - KBW Brian Martin - Janney Montgomery Operator Greetings and welcome to the QCR Holdings, Inc. Earnings Conference Call for the Fourth Quarter and Full Year 2020. Yesterday, after m ...

QCR Holdings, Inc. (NASDAQ:QCRH) Q3 2020 Results Conference Call October 28, 2020 11:00 AM ET Company Participants Larry Helling - CEO Todd Gipple - President, COO and CFO Conference Call Participants Nathan Race - Piper Sandler Damon DelMonte - KBW Jeff Rulis - D.A. Davidson Brian Martin - Janney Montgomery Operator Greetings, and welcome to the QCR Holdings, Inc. Earnings Conference Call for the Third Quarter of 2020. Yesterday, after market close, the company distributed its third quarter earnings press ...

QCR Holdings, Inc. (NASDAQ:QCRH) Q2 2020 Earnings Conference Call July 28, 2020 11:00 AM ET Company Participants Larry Helling - Chief Executive Officer Todd Gipple - President, Chief Operating Officer, and Chief Financial Officer Conference Call Participants Jeff Rulis - D.A. Davidson Damon DelMonte - KBW Nathan Race - Piper Sandler Evan Lisle - Janney Montgomery Scott Operator Greetings, and welcome to the QCR Holdings, Inc.Â's Earnings Conference Call for the Second Quarter of 2020. Yesterday, after mark ...

COVID-19 EXPOSURE Q2 2020 FORWARD-LOOKING STATEMENTS This document contains, and future oral and written statements of QCR Holdings, Inc. (the "Company") and its management may contain, forwardlooking 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 t ...