QCR (US:QCRH)2022-08-08 18:46Financial Performance - Net income for the three months ended June 30, 2022, was $15,242 thousand, a decrease of 31.5% compared to $22,349 thousand in the same period of 2021[14]. - Net income for 2022 was $38,866,000, down from $40,331,000 in 2021, a decrease of 3.6%[18]. - Net income for the six months ended June 30, 2022, was $38.866 million, a decrease of 3.5% from $40.331 million in 2021[22]. - Net income from continuing operations for the three months ended June 30, 2022, was $15,242,000, compared to $22,349,000 in the same period of 2021, indicating a decrease of about 31.5%[115]. - The Company reported a net income of $15.2 million and diluted EPS of $0.87 for the quarter ended June 30, 2022, a decrease from $23.6 million and $1.49 in the previous quarter[133]. Revenue and Income Sources - Total revenue for the three months ended June 30, 2022, was $90,987,000, an increase from $68,199,000 in the same period of 2021, representing a growth of approximately 33.4%[115]. - Total noninterest income increased to $22,782 thousand, a 18.5% rise from $19,296 thousand year-over-year[14]. - Noninterest income decreased to $38,415,000 in 2022 from $42,785,000 in 2021, a decline of 10.2%[18]. - Trust department fees contributed significantly to noninterest income, with 188 new relationships added totaling $250.9 million in new assets under management in the first six months of 2022[148]. - Capital markets revenue from swap fees totaled $13.0 million for the quarter and $19.4 million for the six months of 2022[144]. Assets and Liabilities - Total assets increased to $7,392,941 thousand as of June 30, 2022, up from $6,096,132 thousand as of December 31, 2021, representing a growth of 21.2%[12]. - Total deposits increased to $5,820,657 thousand, a 18.3% increase from $4,922,772 thousand as of December 31, 2021[12]. - The total assets acquired by the Company amounted to $1,218,273,000, while total liabilities assumed were $1,137,729,000, resulting in net assets acquired of $80,544,000[40]. - The Company reported a total of 17,345,324 weighted average common shares outstanding for Q2 2022, compared to 15,813,932 in Q2 2021[99]. Loans and Credit Quality - Net loans/leases receivable rose to $5,705,478 thousand, a 24% increase from $4,601,411 thousand in the previous year[12]. - The total loan/lease portfolio amounted to $5,797.9 million, an increase of 23.9% from $4,680.1 million as of December 31, 2021[64]. - Nonperforming loans (NPLs) totaled $23.8 million as of June 30, 2022, with a total NPL percentage of 0.41%[66]. - The allowance for credit losses was $92.4 million as of June 30, 2022, compared to $78.7 million as of December 31, 2021, indicating a rise of 17.4%[64]. - The provision for credit losses for the three months ended June 30, 2022, was $12.141 million, which included $11.0 million related to acquired non-PCD loans from Guaranty Bank[69]. Interest Income and Expenses - Net interest income for the three months ended June 30, 2022, was $59,400 thousand, up 36.5% from $43,516 thousand in the same period of 2021[14]. - Total interest and dividend income increased to $119,267,000 in 2022 from $96,468,000 in 2021, representing a growth of 23.6%[18]. - The average cost of interest-bearing liabilities was 0.74% for the quarter ended June 30, 2022, compared to 0.60% for the same quarter in 2021[173]. - Interest income increased by 39% in Q2 2022 compared to Q2 2021, and by 24% for the first half of 2022 compared to the same period in 2021, primarily due to the GFED acquisition and increased yields on loans and securities[171]. Noninterest Expenses - Total noninterest expense for the three months ended June 30, 2022, was $54,248 thousand, up 52.2% from $35,675 thousand in the same period of 2021[14]. - Noninterest expense rose by 42% in the second quarter of 2022 compared to the first quarter, primarily due to acquisition costs and post-acquisition expenses[137]. - Salaries and employee benefits increased by 30.1% in Q2 2022 compared to Q2 2021, and by 11.9% in the first half of 2022 compared to the first half of 2021[194]. - Acquisition costs totaled $2.0 million in Q2 2022 and $3.8 million in the first half of 2022, with no costs incurred in the same periods of 2021[198]. Capital and Regulatory Compliance - The Company’s total common equity Tier 1 capital ratio was maintained above the regulatory minimum, ensuring compliance with capital adequacy guidelines[118]. - Total risk-based capital for the Company was $907,484 thousand, with a ratio of 13.40%, exceeding the required 8.00%[119]. - As of June 30, 2022, the Company and its subsidiary banks met all capital adequacy requirements as per regulatory standards[117]. Acquisitions - The Company completed the acquisition of GFED on April 1, 2022, merging its subsidiary bank, Guaranty Bank, into Springfield First Community Bank[115]. - The acquisition of Guaranty Bank on April 1, 2022, resulted in total assets acquired valued at $1.218 billion and net assets acquired of $80.544 million[23]. - The consideration paid for the acquisition included $26,871,000 in cash and $117,214,000 in common stock, totaling $144,085,000, with goodwill recognized at $63,541,000[40]. Economic Outlook and Risks - The Company anticipates that the economic impact from COVID-19 may continue to adversely affect its business and loan portfolio[126]. - The Company’s financial statements are prepared in accordance with GAAP, requiring management to make estimates that could significantly change[127].