Third Quarter 2019 Highlights

• Net income of $15.1 million, or $0.94 per diluted share
• Adjusted net income (non-GAAP) of $15.9 million, or $1.00 per diluted share
• Expanded NIM and NIM (TEY)(non-GAAP) each by 12 basis points, to 3.37% and 3.52%, respectively
• Record noninterest income of $19.9 million for the quarter and $49.0 million year-to-date
• Definitive agreement to sell Rockford Bank & Trust (“RB&T”) to Heartland Financial USA, Inc.
• Excluding RB&T held for sale assets and liabilities:
  º  Annualized loan and lease growth was 9.1% for the quarter and 9.4% year-to-date
  º  Deposits were down 1.7% on a linked quarter basis and up 9.6% annualized year-to-date
  º  Nonperforming assets were down $2.5 million, or 15.6% from the prior quarter

MOLINE, Ill., Oct. 23, 2019 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced net income of $15.1 million and diluted earnings per share (“EPS”) of $0.94 for the third quarter of 2019, compared to net income of $13.5 million and diluted EPS of $0.85 for the second quarter of 2019. The third quarter results included $0.7 million of post-acquisition compensation, transition and integration costs (after-tax), compared to $0.6 million of similar costs in the second quarter of 2019. Excluding these expenses and some modest cost for early debt extinguishment, the Company reported adjusted net income (non-GAAP) of $15.9 million and adjusted diluted EPS of $1.00 for the third quarter of 2019, compared to adjusted net income (non-GAAP) of $14.1 million and adjusted diluted EPS of $0.88 for the second quarter of 2019. For the third quarter of 2018, net income and diluted EPS were $8.8 million and $0.55, respectively, and adjusted net income (non-GAAP) and adjusted diluted EPS were $10.4 million and $0.65, respectively.

	For the Quarter Ended
	September 30,		June 30,		September 30,
$ in millions (except per share data)	2019		2019		2018
Net Income	$	15.1	$	13.5	$	8.8
Diluted EPS	$	0.94	$	0.85	$	0.55
Adjusted Net Income (non-GAAP)(1)	$	15.9	$	14.1	$	10.4
Adjusted Diluted EPS (non-GAAP)(1)	$	1.00	$	0.88	$	0.65
(1) See GAAP to non-GAAP reconciliations.

 

“We are very pleased with our results for the third quarter,” commented Larry J. Helling, Chief Executive Officer. “We delivered another record quarter of net income, driven by continued strong loan growth, an expanded net interest margin, record fee income, improved credit quality and careful management of noninterest expenses. Despite the highly competitive lending environment, which has led to industry-wide pressure on rates, we have been able to maintain both our pricing and underwriting discipline. This helped us maintain our loan yields even as we grew loans during the quarter. We continue to attract new clients that appreciate our relationship-based community banking model.”

Agreement to sell Rockford Bank & Trust to Heartland Financial USA

On August 13, 2019 the Company announced that it had entered into a definitive agreement with Illinois Bank & Trust (“IB&T”), a wholly-owned subsidiary of Heartland Financial USA, Inc. to sell to IB&T substantially all of the assets and for IB&T to assume substantially all of the deposits and certain other liabilities of RB&T. The transaction is valued at approximately $59 million and the Company is expected to record an approximate $13 million pre-tax gain on the sale excluding costs. The transaction is expected to close in the fourth quarter of 2019.  As a result, substantially all of RB&T’s assets and liabilities are classified as held for sale as of September 30, 2019, which impacts balance sheet comparisons to prior quarters. 

Annualized Loan and Lease Growth of 9.1%, excluding RB&T

During the third quarter of 2019, the Company’s total assets increased $97.5 million to a total of $5.3 billion. Total loans and leases declined by $300.2 million, entirely as a result of classifying substantially all of  RB&T’s loans as held for sale, totaling $368.5 million, gross.  Excluding RB&T’s loans for both the second and third quarters of 2019, total loans and leases grew by $80.3 million, or 2.3% on a linked quarter basis.

Total deposits declined by $520.3 million mainly as a result of classifying substantially all of RB&T’s liabilities as held for sale, which included deposits of $451.5 million. Excluding RB&T’s deposits for both the second and third quarters of 2019, total deposits declined by $67.1 million, driven primarily by a decline in higher cost public funds and brokered CDs, as the Company intentionally did not renew certain deposits as they matured. At quarter-end, the percentage of wholesale funds to total assets was 11.6%, as compared to 10.0% in the second quarter. Additionally, at quarter-end, the percentage of gross loans and leases to total assets, excluding assets held for sale, remained consistent on a linked quarter basis at 75%.

“Our loan and lease growth during the third quarter was driven by solid production from both our core commercial lending business and our Specialty Finance Group,” added Mr. Helling. “Excluding RB&T, loan and lease growth for the first nine months of 2019 has been 9.4% on an annualized basis, and given our solid pipeline, we remain confident that we will be able to achieve organic loan growth of between 8% and 10% for the full year.”  

Record Net Interest Income of $40.7 million

Net interest income for the third quarter of 2019 totaled $40.7 million, compared to $38.0 million for the second quarter of 2019 and $38.3 million for the third quarter of 2018. The increase was due to growth in average interest earning assets of $93.3 million, or 2.0% on a linked quarter basis, combined with the positive impact of a 12 basis point increase in reported net interest margin. Acquisition-related net accretion totaled $1.3 million (pre-tax) for the third quarter of 2019, compared to $1.1 million for the second quarter of 2019 and was $1.7 million for the third quarter of 2018. Adjusted net interest income (non-GAAP) was $41.2 million for the third quarter of 2019, compared to $38.7 million for the second quarter of 2019 and $38.2 million for the third quarter of 2018.

In the third quarter, reported net interest margin was 3.37% and, on a tax-equivalent yield basis, net interest margin was 3.52%, both increasing by 12 basis points from the second quarter of 2019. Net interest margin, excluding acquisition-related net accretion was 3.41%, up 10 basis points from the second quarter. The increase in adjusted net interest margin during the quarter was due to a 5 basis point increase in the yield on interest earning assets combined with a 5 basis point decline in the total cost of interest-bearing funds (due to both mix and rate).

	For the Quarter Ended
	September 30,		June 30,
	2019		2019
NIM	3.37	%	3.25	%
NIM (TEY)(non-GAAP)(1)	3.52	%	3.40	%
Adjusted NIM (TEY)(non-GAAP)(1)	3.41	%	3.31	%
(1)  See GAAP to non-GAAP reconciliations.

“Our significant focus on expanding our net interest margin generated positive results as we produced a 12 basis-point increase in reported margin during the third quarter,” stated Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer. “While total deposits declined on a linked-quarter basis after excluding RB&T, it was mainly driven by an intentional runoff of higher cost public funds and brokered CDs, as our core deposits grew modestly during the quarter. Our organic loan and lease growth during the quarter was primarily funded by the excess liquidity that resulted from the strong increase in core deposits we generated in the first half of the year.”

Record Noninterest Income of $19.9 million            

Noninterest income for the third quarter of 2019 totaled $19.9 million, compared to $17.1 million for the second quarter of 2019. The increase was primarily due to a $1.9 million increase in swap fee income and $0.9 million increase on gains on the sale of residential real estate loans and the government guaranteed portions of loans. Wealth management revenue was $4.1 million for the quarter, comparable to the second quarter of 2019. Noninterest income has increased 126% when compared to the third quarter of 2018.

“Noninterest income increased 17% from the second quarter, driven primarily by another quarterly record for swap fee income. This fee income is correlated to strong production from our Specialty Finance Group in the area of tax credit project lending, where our clients are locking in long-term fixed rate financing. Swap fee income and gains on the sale of government guaranteed loans totaled $21.5 million for the first nine months of 2019, already putting us well in excess of our initial full-year target of $8 to $12 million,” added Mr. Gipple.

Noninterest Expenses of $39.9 million

Noninterest expense for the third quarter of 2019 totaled $39.9 million, compared to $36.6 million and $30.5 million for the second quarter of 2019 and third quarter of 2018, respectively. The linked quarter increase was due to a number of factors, including a $0.9 million increase in net costs of operations of other real estate, as the Company reduced the carrying value of an OREO property by $2.0 million. There was also an additional $1.5 million of bonus and commission expense in the quarter, driven by the strong financial results and higher than anticipated swap fee income.  

Asset Quality Remains Solid

Nonperforming assets (“NPAs”) totaled $13.1 million, a decrease of $10.1 million from the second quarter of 2019. Excluding RB&T NPAs held for sale, the decline was $2.5 million, or 15.6%.  The decrease was primarily due to the $2.0 million write down of an existing OREO property.  The lower NPAs resulted in the ratio of NPAs to total assets improving to 0.27% (excluding RB&T) at September 30, 2019, compared to 0.45% at June 30, 2019 and 0.87% at September 30, 2018.

The Company’s provision for loan and lease losses totaled $2.0 million for the third quarter of 2019, which was up modestly from $1.9 million from the prior quarter and down significantly from $6.2 million in the third quarter of 2018. The linked quarter increase in the provision for loan and lease losses was primarily due to $488 thousand of provision related to an RB&T nonperforming loan held for sale.  As of September 30, 2019, the Company’s allowance to total loans and leases was 1.00%, which was down from 1.05% at June 30, 2019 and down from 1.18% at September 30, 2018.

In accordance with generally accepted accounting principles for acquisition accounting, the loans acquired through past acquisitions were recorded at market value; therefore, there was no allowance associated with the acquired loans at the acquisition date. Management continues to evaluate the allowance needed on the acquired loans factoring in the net remaining discount ($7.7 million at September 30, 2019).

Strong Capital Levels

As of September 30, 2019, the Company’s total risk-based capital ratio was 11.93%, the common equity tier 1 ratio was 8.91%, and the tangible common equity to tangible assets ratio was 8.20%. By comparison, these respective ratios were 12.04%, 8.93% and 8.05% as of June 30, 2019.

Continued Focus on Seven Key Initiatives

The Company continues to focus on the following long-term initiatives in an effort to improve profitability and drive increased shareholder value:

• Strong organic loan and lease growth in order to maintain loans and leases to total assets ratio in the range of 73% - 78%
• Grow core deposits to maintain reliance on wholesale funding at less than 15% of assets
• Generate gains on sale of government guaranteed loans, and fee income on interest rate swaps, as a significant and consistent component of core revenue
• Grow wealth management net income by 10% annually
• Carefully manage noninterest expense growth
• Maintain asset quality metrics at better than peer levels
• Participate as an acquirer in the consolidation taking place in our industry to further boost return on average assets, improve efficiency ratio, and increase EPS

Conference Call Details

The Company will host an earnings call/webcast tomorrow, October 24, 2019, 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 November 7, 2019. The replay access information is 877-344-7529 (international 412-317-0088); access code 10135244. A webcast of the teleconference can be accessed at 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, Springfield and Rockford communities through its 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, Rockford Bank & Trust Company, based in Rockford, Illinois, commenced operations in 2005, and Springfield First 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. Quad City Bank & Trust Company engages in commercial leasing through its wholly owned subsidiary, m2 Lease Funds, LLC, based in Milwaukee, Wisconsin, and also provides correspondent banking services. The Company has 27 locations in Illinois, Iowa, Wisconsin and Missouri. As of September 30, 2019, the Company had approximately $5.3 billion in assets, $3.6 billion in loans and $3.8 billion in deposits. For additional information, please visit our 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,” “predict,” “suggest,” “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should” 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, among others, the following: (i) the strength of the local, state, national and international economies (including the impact of tariffs, a U.S. withdrawal from or significant renegotiation of trade agreements, trade wars and other changes in trade regulations); (ii) the economic impact of any future terrorist threats and attacks, and the response of the United States to any such threats and attacks; (iii) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business; (iv) changes in interest rates and prepayment rates of the Company’s assets; (v) increased competition in the financial services sector and the inability to attract new customers; (vi) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (vii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (viii) the loss of key executives or employees; (ix) changes in consumer spending; (x)  unexpected outcomes of existing or new litigation involving the Company; and (xi) changes in accounting policies and practices. 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 Securities and Exchange Commission.

Contacts:

Todd A. Gipple
President
Chief Operating Officer
Chief Financial Officer
(309) 743-7745
tgipple@qcrh.com

Christopher J. Lindell
Executive Vice President
Corporate Communications
(319) 743-7006
clindell@qcrh.com

QCR Holdings, Inc. Consolidated
Financial Highlights
(Unaudited)
													Held for Sale
	As of												As of
	September 30,		June 30,		March 31,		December 31,		September 30,				September 30,
	2019		2019		2019		2018		2018				2019
	(dollars in thousands)
CONDENSED BALANCE SHEET
Cash and due from banks	$	91,671	$	87,919	$	76,527	$	85,523	$	73,407			$	11,031
Federal funds sold and interest-bearing deposits		197,263		205,497		216,032		159,596		129,660				2,415
Securities		555,409		643,803		655,749		662,969		650,745				66,009
Net loans/leases		3,574,154		3,869,415		3,758,268		3,692,907		3,610,309				362,011
Intangibles		15,529		16,089		16,918		17,450		16,137				-
Goodwill		77,748		77,748		77,872		77,832		73,618				-
Other assets		315,061		294,381		265,296		253,433		238,856				24,081
Assets held for sale		465,547		-		-		-		-				-
Total assets	$	5,292,382	$	5,194,852	$	5,066,662	$	4,949,710	$	4,792,732			$	465,547
Total deposits	$	3,802,241	$	4,322,510	$	4,194,220	$	3,977,031	$	3,788,277			$	451,546
Total borrowings		320,457		230,953		282,994		404,968		483,635				16,157
Other liabilities		179,411		137,089		101,041		94,573		63,433				2,827
Liabilities held for sale		470,530		-		-		-		-				-
Total stockholders' equity		519,743		504,300		488,407		473,138		457,387				-
Total liabilities and stockholders' equity	$	5,292,382	$	5,194,852	$	5,066,662	$	4,949,710	$	4,792,732			$	470,530
ANALYSIS OF LOAN PORTFOLIO
Loan/lease mix:
Commercial and industrial loans	$	1,469,978	$	1,548,657	$	1,479,247	$	1,429,410	$	1,380,543
Commercial real estate loans		1,687,922		1,837,473		1,790,845		1,766,111		1,727,326
Direct financing leases		92,307		101,180		108,543		117,969		126,752
Residential real estate loans		245,667		293,479		288,502		290,759		309,288
Installment and other consumer loans		106,540		120,947		123,087		119,381		100,191
Deferred loan/lease origination costs, net of fees		7,856		8,783		9,208		9,124		9,286
Total loans/leases	$	3,610,270	$	3,910,519	$	3,799,432	$	3,732,754	$	3,653,386
Less allowance for estimated losses on loans/leases		36,116		41,104		41,164		39,847		43,077
Net loans/leases	$	3,574,154	$	3,869,415	$	3,758,268	$	3,692,907	$	3,610,309
ANALYSIS OF SECURITIES PORTFOLIO
Securities mix:
U.S. government sponsored agency securities	$	21,268	$	35,762	$	35,843	$	36,411	$	36,492
Municipal securities		391,329		440,853		450,376		459,409		453,275
Residential mortgage-backed and related securities		123,880		159,228		161,692		159,249		155,733
Other securities		18,932		7,960		7,838		7,900		5,245
Total securities	$	555,409	$	643,803	$	655,749	$	662,969	$	650,745
ANALYSIS OF DEPOSITS
Deposit mix:
Noninterest-bearing demand deposits	$	782,232	$	795,951	$	821,599	$	791,101	$	802,090
Interest-bearing demand deposits		2,245,557		2,505,956		2,334,474		2,204,206		2,094,814
Time deposits		536,352		733,135		719,286		704,903		615,323
Brokered deposits		238,100		287,468		318,861		276,821		276,050
Total deposits	$	3,802,241	$	4,322,510	$	4,194,220	$	3,977,031	$	3,788,277
ANALYSIS OF BORROWINGS
Borrowings mix:
Term FHLB advances	$	60,000	$	46,433	$	66,380	$	76,327	$	63,399
Overnight FHLB advances (1)		135,800		59,300		59,800		190,165		295,730
Wholesale structured repurchase agreements		-		-		35,000		35,000		35,000
Customer repurchase agreements		2,421		2,181		3,056		2,084		3,049
Federal funds purchased		16,105		17,010		12,830		26,690		8,670
Subordinated notes		68,334		68,274		68,215		4,782		-
Junior subordinated debentures		37,797		37,755		37,713		37,670		37,626
Other borrowings		-		-		-		32,250		40,161
Total borrowings	$	320,457	$	230,953	$	282,994	$	404,968	$	483,635
(1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 2.09%.

QCR Holdings, Inc. Consolidated
Financial Highlights
(Unaudited)
			For the Quarter Ended
			September 30,			June 30,			March 31		December 31,				September 30,
			2019			2019			2019		2018				2018
			(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income			$	56,817		$	54,181		$	52,102		$	52,703		$	49,831
Interest expense				16,098			16,168			15,194			13,110			11,517
Net interest income				40,719			38,013			36,908			39,593			38,314
Provision for loan/lease losses				2,012			1,941			2,134			1,611			6,206
Net interest income after provision for loan/lease losses			$	38,707		$	36,072		$	34,774		$	37,982		$	32,108
Trust department fees			$	2,340		$	2,361		$	2,493		$	2,216		$	2,196
Investment advisory and management fees				1,782			1,888			1,736			1,657			1,059
Deposit service fees				1,813			1,658			1,554			1,623			1,656
Gain on sales of residential real estate loans, net				890			489			369			361			337
Gain on sales of government guaranteed portions of loans, net				519			39			31			-			46
Swap fee income				9,797			7,891			3,198			7,069			1,110
Securities losses, net				(3	)		(52	)		-			-			-
Earnings on bank-owned life insurance				489			412			540			341			474
Debit card fees				886			914			792			807			846
Correspondent banking fees				189			172			216			179			195
Other				1,204			1,293			1,064			1,026			890
Total noninterest income			$	19,906		$	17,065		$	11,993		$	15,279		$	8,809
Salaries and employee benefits			$	24,215		$	22,749		$	20,879		$	19,779		$	17,433
Occupancy and equipment expense				3,860			3,533			3,694			3,367			3,318
Professional and data processing fees				4,030			3,031			2,750			3,577			2,396
Acquisition costs				-			-			-			(4	)		1,292
Post-acquisition compensation, transition and integration costs				884			708			134			1,427			494
FDIC insurance, other insurance and regulatory fees				542			926			964			1,065			933
Loan/lease expense				221			312			214			624			369
Net cost of (income from) and gains/losses on operations of other real estate				2,078			1,182			298			2,477			(50	)
Advertising and marketing				1,056			1,037			785			1,122			984
Bank service charges				502			508			483			469			462
Losses on debt extinguishment, net				148			-			-			-			-
Correspondent banking expense				209			206			204			207			205
Intangibles amortization				560			615			532			540			542
Other				1,640			1,753			1,498			1,760			2,122
Total noninterest expense			$	39,945		$	36,560		$	32,435		$	36,410		$	30,500
Net income before income taxes			$	18,668		$	16,577		$	14,332		$	16,851		$	10,417
Federal and state income tax expense				3,573			3,073			1,414			3,535			1,608
Net income			$	15,095		$	13,504		$	12,918		$	13,316		$	8,809
Basic EPS			$	0.96		$	0.86		$	0.82		$	0.85		$	0.56
Diluted EPS			$	0.94		$	0.85		$	0.81		$	0.84		$	0.55
Weighted average common shares outstanding				15,739,430			15,714,588			15,693,345			15,641,401			15,625,123
Weighted average common and common equivalent shares outstanding				15,976,742			15,938,377			15,922,940			15,898,591			15,922,324

QCR Holdings, Inc. Consolidated
Financial Highlights
(Unaudited)
			For the Nine Months Ended
			September 30,				September 30,
			2019				2018
			(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income			$	163,099			$	130,175
Interest expense				47,459				27,374
Net interest income				115,640				102,801
Provision for loan/lease losses				6,087				11,046
Net interest income after provision for loan/lease losses			$	109,553			$	91,755
Trust department fees			$	7,194			$	6,491
Investment advisory and management fees				5,406				3,069
Deposit service fees				5,025				4,797
Gain on sales of residential real estate loans				1,748				539
Gain on sales of government guaranteed portions of loans				589				405
Swap fee income				20,886				3,718
Securities losses, net				(56	)			-
Earnings on bank-owned life insurance				1,441				1,292
Debit card fees				2,591				2,456
Correspondent banking fees				578				673
Other				3,562				2,822
Total noninterest income			$	48,964			$	26,262
Salaries and employee benefits			$	67,843			$	49,215
Occupancy and equipment expense				11,087				9,517
Professional and data processing fees				9,811				8,016
Acquisition costs				-				1,799
Post-acquisition compensation, transition and integration costs				1,727				659
FDIC insurance, other insurance and regulatory fees				2,432				2,529
Loan/lease expense				748				920
Net cost of (income from) and gains/losses on operations of other real estate				3,557				11
Advertising and marketing				2,878				2,430
Bank service charges				1,494				1,368
Losses on debt extinguishment, net				148				-
Correspondent banking expense				619				614
Intangibles amortization				1,706				1,151
Other				4,891				4,504
Total noninterest expense			$	108,941			$	82,733
Net income before income taxes			$	49,576			$	35,284
Federal and state income tax expense				8,059				5,480
Net income			$	41,517			$	29,804
Basic EPS			$	2.64			$	2.06
Diluted EPS			$	2.60			$	2.02
Weighted average common shares outstanding				15,715,788				14,477,783
Weighted average common and common equivalent shares outstanding				15,946,020				14,786,777

QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
	As of and for the Quarter Ended																For the Nine Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,				September 30,			September 30,
	2019			2019			2019			2018			2018				2019			2018
	(dollars in thousands, except per share data)
COMMON SHARE DATA
Common shares outstanding		15,790,462			15,772,939			15,755,442			15,718,208			15,673,760
Book value per common share (1)	$	32.91		$	31.97		$	31.00		$	30.10		$	29.18
Tangible book value per common share (2)	$	27.01		$	26.02		$	24.98		$	24.04		$	23.46
Closing stock price	$	37.98		$	34.87		$	33.92		$	32.09		$	40.85
Market capitalization	$	599,722		$	550,002		$	534,425		$	504,397		$	640,273
Market price / book value		115.40	%		109.06	%		109.42	%		106.61	%		139.98	%
Market price / tangible book value		140.61	%		134.00	%		135.77	%		133.49	%		174.16	%
Earnings per common share (basic) LTM (3)	$	3.49		$	3.10		$	2.99		$	2.92		$	2.79
Price earnings ratio LTM (3)	10.88 x			11.25 x			11.34 x			10.98 x			14.64 x
TCE / TA (4)		8.20	%		8.05	%		7.92	%		7.78	%		7.82	%
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Beginning balance	$	504,300		$	488,407		$	473,138		$	457,387		$	369,588
Net income		15,095			13,504			12,918			13,316			8,809
Other comprehensive income (loss), net of tax		543			2,243			2,343			1,943			(612	)
Common stock cash dividends declared		(944	)		(942	)		(942	)		(939	)		(938	)
Proceeds from issuance of 1,689,561 shares of common stock, net of costs, as a result of the acquisition of Springfield First Community Bank		-			-			-			-			80,063
Proceeds from issuance of 23,501 shares of common stock, net of costs, as a result of the acquisition of Bates Companies		-			-			-			1,000			-
Other (5)		749			1,088			950			431			477
Ending balance	$	519,743		$	504,300		$	488,407		$	473,138		$	457,387
REGULATORY CAPITAL RATIOS (6):
Total risk-based capital ratio		11.93	%		12.04	%		12.26	%		10.69	%		10.87	%
Tier 1 risk-based capital ratio		9.70	%		9.76	%		9.87	%		9.77	%		9.83	%
Tier 1 leverage capital ratio		9.02	%		8.96	%		8.90	%		8.87	%		8.87	%
Common equity tier 1 ratio		8.91	%		8.93	%		9.02	%		8.89	%		8.92	%
KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets (annualized)		1.16	%		1.06	%		1.04	%		1.10	%		0.75	%			1.09	%		0.94	%
Return on average total equity (annualized)		11.70	%		10.84	%		10.71	%		11.42	%		8.08	%			11.09	%		10.30	%
Net interest margin		3.37	%		3.25	%		3.25	%		3.48	%		3.46	%			3.29	%		3.45	%
Net interest margin (TEY) (Non-GAAP)(7)		3.52	%		3.40	%		3.40	%		3.63	%		3.60	%			3.43	%		3.59	%
Efficiency ratio (Non-GAAP) (8)		65.89	%		66.38	%		66.33	%		66.35	%		64.72	%			66.18	%		64.10	%
Gross loans and leases / total assets (10)		74.80	%		75.28	%		74.99	%		75.41	%		76.23	%			74.80	%		76.23	%
Gross loans and leases / total deposits (10)		94.95	%		90.47	%		90.59	%		93.86	%		96.44	%			94.95	%		96.44	%
Effective tax rate		19.14	%		18.54	%		9.87	%		20.98	%		15.44	%			16.26	%		15.53	%
Full-time equivalent employees (9)		766			773			771			755			728				766			728
AVERAGE BALANCES
Assets	$	5,217,763		$	5,077,900		$	4,968,502		$	4,842,232		$	4,677,875			$	5,088,055		$	4,242,083
Loans/leases		3,962,464			3,839,674			3,759,615			3,699,885			3,612,648				3,853,918			3,236,514
Deposits		4,302,995			4,271,391			4,110,868			3,986,236			3,840,077				4,228,418			3,474,213
Total stockholders' equity		516,195			498,263			482,423			466,271			436,065				498,960			385,874
(1) Includes accumulated other comprehensive income (loss).
(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets.
(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.
(9) Growth in full-time equivalents due primarily to the merger with Springfield Bancshares, Inc., the acquisition of the Bates Companies and the addition of several
new positions created to build scale.
(10) Excludes assets held for sale as of September 30, 2019.

QCR Holdings, Inc. Consolidated
Financial Highlights
(Unaudited)
ANALYSIS OF NET INTEREST INCOME AND MARGIN (4)
	For the Quarter Ended
	September 30, 2019							June 30, 2019							September 30, 2018
	Average Balance		Interest Earned or Paid		Average Yield or Cost			Average Balance		Interest Earned or Paid		Average Yield or Cost			Average Balance		Interest Earned or Paid		Average Yield or Cost
	(dollars in thousands)
Fed funds sold	$	7,234	$	42	2.30	%		$	9,690	$	56	2.32	%		$	23,199	$	105	1.80	%
Interest-bearing deposits at financial institutions		172,386		951	2.19	%			182,651		1,168	2.56	%			61,815		323	2.07	%
Securities (1)		626,471		6,080	3.85	%			644,999		6,062	3.77	%			667,142		5,973	3.55	%
Restricted investment securities		22,719		293	5.12	%			21,007		290	5.54	%			22,683		330	5.77	%
Loans (1)		3,962,464		51,214	5.13	%			3,839,674		48,413	5.06	%			3,612,648		44,648	4.90	%
Total earning assets (1)	$	4,791,274	$	58,580	4.85	%		$	4,698,021	$	55,989	4.78	%		$	4,387,487	$	51,379	4.65	%
Interest-bearing deposits	$	2,505,383	$	7,907	1.25	%		$	2,461,768	$	8,271	1.35	%		$	2,214,480	$	5,432	0.97	%
Time deposits		975,736		5,486	2.23	%			1,013,391		5,554	2.20	%			825,020		3,290	1.58	%
Short-term borrowings		17,333		98	2.24	%			16,145		81	2.01	%			21,407		78	1.45	%
Federal Home Loan Bank advances		123,107		1,023	3.30	%			76,154		601	3.17	%			209,111		1,422	2.70	%
Other borrowings		-		-	0.00	%			10,550		92	3.50	%			74,503		776	4.13	%
Subordinated debentures		68,299		1,003	5.83	%			68,239		993	5.84	%			-		-	0.00	%
Junior subordinated debentures		37,774		581	6.10	%			37,731		576	6.12	%			37,600		519	5.48	%
Total interest-bearing liabilities	$	3,727,632	$	16,098	1.71	%		$	3,683,978	$	16,168	1.76	%		$	3,382,121	$	11,517	1.35	%
Net interest income / spread (1)			$	42,482	3.14	%				$	39,821	3.02	%				$	39,862	3.30	%
Net interest margin (2)					3.37	%						3.25	%						3.46	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.52	%						3.40	%						3.60	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.41	%						3.31	%						3.45	%
	For the Nine Months Ended
	September 30, 2019							September 30, 2018
	Average Balance		Interest Earned or Paid		Average Yield or Cost			Average Balance		Interest Earned or Paid		Average Yield or Cost
	(dollars in thousands)
Fed funds sold	$	10,887	$	191	2.35	%		$	20,488	$	223	1.46	%
Interest-bearing deposits at financial institutions		170,167		3,042	2.39	%			55,408		749	1.81	%
Securities (1)		643,975		18,237	3.79	%			654,818		17,391	3.55	%
Restricted investment securities		21,670		891	5.50	%			21,871		776	4.74	%
Loans (1)		3,853,918		145,682	5.05	%			3,236,514		115,365	4.77	%
Total earning assets (1)	$	4,700,617	$	168,043	4.78	%		$	3,989,099	$	134,504	4.51	%
Interest-bearing deposits	$	2,418,420	$	23,351	1.29	%		$	1,987,371	$	12,541	0.84	%
Time deposits		1,000,529		16,346	2.18	%			702,441		7,591	1.44	%
Short-term borrowings		15,952		275	2.30	%			19,234		186	1.29	%
Federal Home Loan Bank advances		115,539		2,685	3.11	%			206,875		3,267	2.11	%
Other borrowings		18,084		512	3.79	%			68,742		2,315	4.50	%
Subordinated debentures		58,392		2,561	5.86	%			-		-	0.00	%
Junior subordinated debentures		37,730		1,729	6.13	%			37,556		1,474	5.25	%
Total interest-bearing liabilities	$	3,664,646	$	47,459	1.73	%		$	3,022,219	$	27,374	1.21	%
Net interest income / spread (1)			$	120,584	3.05	%				$	107,130	3.30	%
Net interest margin (2)					3.29	%						3.45	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.43	%						3.59	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)					3.33	%						3.49	%
(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% 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.
(4) Interest earning assets and interest bearing liabilities classified as held for sale as of September 30, 2019 are included in the calculations above.

QCR Holdings, Inc. Consolidated
Financial Highlights
(Unaudited)
	As of
	September 30,			June 30,			March 31,			December 31,			September 30,
	2019			2019			2019			2018			2018
	(dollars in thousands, except per share data)
ROLLFORWARD OF ALLOWANCE FOR LOAN/LEASE LOSSES
Beginning balance	$	41,104		$	41,164		$	39,847		$	43,077		$	37,545
Allowance related to held for sale loans		(6,062	)		-			-			-			-
Provision charged to expense (2)		1,524			1,941			2,134			1,611			6,206
Loans/leases charged off		(739	)		(2,152	)		(1,059	)		(4,967	)		(991	)
Recoveries on loans/leases previously charged off		289			151			242			126			317
Ending balance	$	36,116		$	41,104		$	41,164		$	39,847		$	43,077
NONPERFORMING ASSETS
Nonaccrual loans/leases	$	8,231		$	13,148		$	13,406		$	14,260		$	23,576
Accruing loans/leases past due 90 days or more		-			58			61			632			1,410
Troubled debt restructures - accruing		763			1,313			3,794			3,659			4,240
Total nonperforming loans/leases		8,994			14,519			17,261			18,551			29,226
Other real estate owned		4,248			8,637			9,110			9,378			12,204
Other repossessed assets		-			-			-			8			150
Total nonperforming assets	$	13,242		$	23,156		$	26,371		$	27,937		$	41,580
ASSET QUALITY RATIOS
Nonperforming assets / total assets (3)		0.27	%		0.45	%		0.52	%		0.56	%		0.87	%
Allowance / total loans/leases (1)		1.00	%		1.05	%		1.08	%		1.07	%		1.18	%
Allowance / nonperforming loans/leases (1)		401.56	%		283.10	%		238.48	%		214.80	%		147.39	%
Net charge-offs as a % of average loans/leases		0.01	%		0.05	%		0.02	%		0.13	%		0.02	%
(1) Upon acquisition and per GAAP, acquired loans are recorded at market value which eliminates the allowance and impacts these ratios.
(2) Excludes provision related to loans included in assets held for sale of $488 thousand for the quarter ending September 30, 2019.
(3) Excludes assets held for sale as of September 30, 2019.

QCR Holdings, Inc. Consolidated
Financial Highlights
(Unaudited)
				For the Quarter Ended												For the Nine Months Ended
				September 30,				June 30,				September 30,				September 30,				September 30,
		SELECT FINANCIAL DATA - SUBSIDIARIES		2019				2019				2018				2019				2018
				(dollars in thousands)
		TOTAL ASSETS
		Quad City Bank and Trust (1)		$	1,642,950			$	1,637,115			$	1,579,327
		m2 Lease Funds, LLC			232,432				234,072				235,214
		Cedar Rapids Bank and Trust			1,592,896				1,527,521				1,354,294
		Community State Bank - Ankeny			801,596				806,704				734,536
		Springfield First Community Bank			693,897				671,644				623,520
		TOTAL DEPOSITS
		Quad City Bank and Trust (1)		$	1,371,721			$	1,434,467			$	1,288,387
		Cedar Rapids Bank and Trust			1,271,828				1,283,151				1,086,908
		Community State Bank - Ankeny			695,980				705,777				586,929
		Springfield First Community Bank			484,225				471,340				439,669
		TOTAL LOANS & LEASES
		Quad City Bank and Trust (1)		$	1,290,195			$	1,273,400			$	1,195,380
		m2 Lease Funds, LLC			230,061				230,676				232,846
		Cedar Rapids Bank and Trust			1,148,952				1,100,823				1,046,053
		Community State Bank - Ankeny			594,227				597,486				538,723
		Springfield First Community Bank			526,466				515,566				480,969
		TOTAL LOANS & LEASES / TOTAL DEPOSITS
		Quad City Bank and Trust (1)			94	%			89	%			93	%
		Cedar Rapids Bank and Trust			90	%			86	%			96	%
		Community State Bank - Ankeny			85	%			85	%			92	%
		Springfield First Community Bank			109	%			109	%			109	%
		TOTAL LOANS & LEASES / TOTAL ASSETS
		Quad City Bank and Trust (1)			79	%			78	%			76	%
		Cedar Rapids Bank and Trust			72	%			72	%			77	%
		Community State Bank - Ankeny			74	%			74	%			73	%
		Springfield First Community Bank			76	%			77	%			77	%
		ALLOWANCE AS A PERCENTAGE OF LOANS/LEASES
		Quad City Bank and Trust (1)			1.07	%			1.06	%			1.11	%
		m2 Lease Funds, LLC			1.39	%			1.38	%			1.50	%
		Cedar Rapids Bank and Trust (2)			1.17	%			1.19	%			1.26	%
		Community State Bank - Ankeny (2)			1.13	%			1.09	%			1.01	%
		Springfield First Community Bank (2)			0.42	%			0.37	%			0.10	%
		RETURN ON AVERAGE ASSETS
		Quad City Bank and Trust (1)			1.33	%			1.22	%			1.36	%			1.25	%			1.34	%
		Cedar Rapids Bank and Trust			2.04	%			1.95	%			1.47	%			1.85	%			1.46	%
		Community State Bank - Ankeny			1.71	%			1.17	%			1.43	%			1.33	%			1.27	%
		Springfield First Community Bank			1.32	%			1.37	%			1.51	%			1.27	%			1.51	%
		NET INTEREST MARGIN PERCENTAGE (3)
		Quad City Bank and Trust (1)			3.49	%			3.29	%			3.38	%			3.34	%			3.45	%
		Cedar Rapids Bank and Trust (5)			3.41	%			3.41	%			3.53	%			3.41	%			3.58	%
		Community State Bank - Ankeny (4)			4.83	%			4.08	%			4.40	%			4.32	%			4.38	%
		Springfield First Community Bank (6)			3.64	%			4.10	%			4.36	%			3.93	%			4.36	%
		ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET
		INTEREST MARGIN, NET
		Cedar Rapids Bank and Trust		$	229			$	71			$	158			$	444			$	610
		Community State Bank - Ankeny			649				76				445				783				1,331
		Springfield First Community Bank			432				971				1,119				2,313				1,119
		QCR Holdings, Inc. (7)			(42	)			(42	)			(45	)			(127	)			(139	)
(1)		Quad City Bank and Trust figures include m2 Lease Funds, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Lease Funds, LLC
		is also presented separately for certain (applicable) measurements.
(2)		Upon acquisition and per GAAP, acquired loans are recorded at market value, which eliminates the allowance and impacts this ratio.
(3)		Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using
		a 21% tax rate.
(4)		Community State Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest
		margin would have been 4.46% for the quarter ended September 30, 2019, 4.01% for the quarter ended June 30, 2019 and 4.11% for the
		quarter ended September 30, 2018.
(5)		Cedar Rapids Bank and Trust's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest
		margin would have been 3.34% for the quarter ended September 30, 2019, 3.39% for the quarter ended June 30, 2019 and 3.48% for the
		quarter ended September 30, 2018.
(6)		Springfield First Community Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest
		margin would have been 3.16% for the quarter ended September 30, 2019, 3.39% for the quarter ended June 30, 2019 and 3.45% for the
		quarter ended September 30, 2018.
(7)		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 Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
		As of
		September 30,				June 30				March 31				December 31,				September 30,
GAAP TO NON-GAAP RECONCILIATIONS		2019				2019				2019				2018				2018
		(dollars in thousands, except per share data)
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)
Stockholders' equity (GAAP)		$	519,743			$	504,300			$	488,407			$	473,138			$	457,387
Less: Intangible assets			93,277				93,837				94,790				95,282				89,755
Tangible common equity (non-GAAP)		$	426,466			$	410,463			$	393,617			$	377,856			$	367,632
Total assets (GAAP)		$	5,292,382			$	5,194,852			$	5,066,662			$	4,949,710			$	4,792,732
Less: Intangible assets			93,277				93,837				94,790				95,282				89,755
Tangible assets (non-GAAP)		$	5,199,105			$	5,101,015			$	4,971,872			$	4,854,428			$	4,702,977
Tangible common equity to tangible assets ratio (non-GAAP)			8.20	%			8.05	%			7.92	%			7.78	%			7.82	%
		For the Quarter Ended																				For the Nine Months Ended
		September 30,				June 30,				March 31				December 31,				September 30,				September 30,				September 30,
ADJUSTED NET INCOME (2)		2019				2019				2019				2018				2018				2019				2018
Net income (GAAP)		$	15,095			$	13,504			$	12,918			$	13,316			$	8,809			$	41,517			$	29,804
Less nonrecurring items (post-tax) (3):
Income:
Securities gains, net			(2	)		$	(41	)		$	-			$	-			$	-			$	(43	)		$	-
Total nonrecurring income (non-GAAP)		$	(2	)		$	(41	)		$	-			$	-			$	-			$	(43	)		$	-
Expense:
Losses on debt extinguishment, net		$	117			$	-			$	-			$	-			$	-			$	117			$	-
Acquisition costs (4)			-				-				-				29				1,216				-				1,616
Post-acquisition compensation, transition and integration costs			698				559				106				1,127				390				1,363				520
Total nonrecurring expense (non-GAAP)		$	815			$	559			$	106			$	1,156			$	1,606			$	1,480			$	2,136
Adjusted net income (non-GAAP) (2)		$	15,912			$	14,104			$	13,024			$	14,472			$	10,415			$	43,040			$	31,940
ADJUSTED EARNINGS PER COMMON SHARE (2)
Adjusted net income (non-GAAP) (from above)		$	15,912			$	14,104			$	13,024			$	14,472			$	10,415			$	43,040			$	31,940
Weighted average common shares outstanding			15,739,430				15,714,588				15,693,345				15,641,401				15,625,123				15,715,788				14,477,783
Weighted average common and common equivalent shares outstanding			15,976,742				15,938,377				15,922,940				15,898,591				15,922,324				15,946,020				14,786,777
Adjusted earnings per common share (non-GAAP):
Basic		$	1.01			$	0.90			$	0.83			$	0.93			$	0.67			$	2.74			$	2.21
Diluted		$	1.00			$	0.88			$	0.82			$	0.91			$	0.65			$	2.70			$	2.16
ADJUSTED RETURN ON AVERAGE ASSETS (2)
Adjusted net income (non-GAAP) (from above)		$	15,912			$	14,104			$	13,024			$	14,472			$	10,415			$	43,040			$	31,940
Average Assets		$	5,217,763			$	5,077,900			$	4,968,502			$	4,842,232			$	4,677,875			$	5,088,055			$	4,242,083
Adjusted return on average assets (annualized) (non-GAAP)			1.22	%			1.11	%			1.05	%			1.20	%			0.89	%			1.13	%			1.00	%
NET INTEREST MARGIN (TEY) (6)
Net interest income (GAAP)		$	40,719			$	38,013			$	36,908			$	39,593			$	38,314			$	115,640			$	102,801
Plus: Tax equivalent adjustment (5)			1,763				1,808				1,794				1,751				1,548				4,944				4,329
Net interest income - tax equivalent (Non-GAAP)		$	42,482			$	39,821			$	38,702			$	41,344			$	39,862			$	120,584			$	107,130
Less: Acquisition accounting net accretion			1,268				1,076				1,069				2,609				1,677				3,413				2,921
Adjusted net interest income		$	41,214			$	38,745			$	37,633			$	38,735			$	38,185			$	117,171			$	104,209
Average earning assets		$	4,791,274			$	4,698,021			$	4,612,553			$	4,513,277			$	4,387,487			$	4,700,617			$	3,989,099
Net interest margin (GAAP)			3.37	%			3.25	%			3.25	%			3.48	%			3.46	%			3.29	%			3.45	%
Net interest margin (TEY) (Non-GAAP)			3.52	%			3.40	%			3.40	%			3.63	%			3.60	%			3.43	%			3.59	%
Adjusted net interest margin (TEY) (Non-GAAP)			3.41	%			3.31	%			3.31	%			3.40	%			3.45	%			3.33	%			3.49	%
EFFICIENCY RATIO (7)
Noninterest expense (GAAP)		$	39,945			$	36,560			$	32,435			$	36,410			$	30,500			$	108,941			$	82,733
Net interest income (GAAP)		$	40,719			$	38,013			$	36,908			$	39,593			$	38,314			$	115,640			$	102,801
Noninterest income (GAAP)			19,906				17,065				11,993				15,279				8,809				48,964				26,262
Total income		$	60,625			$	55,078			$	48,901			$	54,872			$	47,123			$	164,604			$	129,063
Efficiency ratio (noninterest expense/total income) (Non-GAAP)			65.89	%			66.38	%			66.33	%			66.35	%			64.72	%			66.18	%			64.10	%
(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.
(2) Adjusted net income, Adjusted net income attributable to QCR Holdings, Inc. common stockholders, Adjusted earnings per common share and Adjusted return on average assets are
non-GAAP financial measures. The Company's management believes that these measurements are important to investors as they exclude 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, this non-GAAP measure is reconciled to net income, which is
the most directly comparable GAAP financial measure.
(3) Nonrecurring items (post-tax) are calculated using an estimated effective tax rate of 21%.
(4) Acquisition costs were analyzed individually for deductibility. Presented amounts are tax-effected accordingly.
(5) Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% tax rate.
(6) 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.
(7) 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.