QCR (QCRH) - 2023 Q3 - Quarterly Report

Part I: Financial Information Presents unaudited consolidated financial statements and management's discussion and analysis Item 1: Consolidated Financial Statements (Unaudited) Unaudited consolidated financial statements for QCR Holdings, Inc., detailing balance sheets, income, equity, and cash flows Consolidated Balance Sheets 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] - Total deposits increased by $510.6 million (8.5%) from December 31, 2022, to September 30, 2023[12] Consolidated Statements of Income (Three Months Ended September 30, 2023 and 2022) Details the Company's revenues, expenses, and net income for the three months ended September 30 | Metric (in thousands) | Q3 2023 | Q3 2022 | Change ($) | 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 | $(0.22) | (12.9)% | - Net interest income decreased by 9.1% year-over-year in Q3 2023, primarily due to a significant increase in interest expense (up 188.2%) outpacing the growth in interest income (up 37.0%)[14] - Noninterest income saw a substantial increase of 26.1% in Q3 2023, driven by capital markets revenue and earnings on bank-owned life insurance[14] Consolidated Statements of Income (Nine Months Ended September 30, 2023 and 2022) Details the Company's revenues, expenses, and net income for the nine months ended September 30 | Metric (in thousands) | 9M 2023 | 9M 2022 | Change ($) | 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] - Interest expense surged by 316.4% for the nine-month period, reflecting the rising interest rate environment and increased cost of funds[18] Consolidated Statements of Comprehensive Income 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] - 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] Consolidated Statements of Changes in Stockholders' Equity 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] - The company repurchased and canceled 175,000 shares of common stock during the nine months ended September