QCR HOLDINGS INC

For the period ended Dec 31, 2023. Filed Feb 29, 2024.

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FY2023 · Filed Feb 29, 2024

QCRH$102.99-0.3%Stored close · as of Nov 10, 2026

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Contents

GAAP to Non-GAAP Reconciliations

The following table presents certain non-GAAP financial measures related to the “TCE/TA ratio”, “adjusted net income”, “adjusted EPS”, “adjusted ROAA”, “NIM (TEY)”, “adjusted NIM” and “efficiency ratio”. In compliance with applicable rules of the SEC, all non-GAAP measures are reconciled to the most directly comparable GAAP measure, as follows:

●	TCE/TA ratio (non-GAAP) is reconciled to stockholders’ equity and total assets;

●	Adjusted net income, adjusted EPS and adjusted ROAA (all non-GAAP measures) are reconciled to net income;

●	NIM (TEY) (non-GAAP) and adjusted NIM (TEY) (non-GAAP) are reconciled to NIM; and

●	Efficiency ratio (non-GAAP) is reconciled to noninterest expense, net interest income and noninterest income.

The TCE/TA non-GAAP ratio has been a focus for our investors and management believes that this ratio may assist investors in analyzing the Company’s capital position without regard to the effects of intangible assets.

The following tables also include several “adjusted” non-GAAP measurements of financial performance. The Company’s management believes that these measures are important to investors as they exclude non-core or non-recurring income and expense items; therefore, they provide a better comparison for analysis and may provide a better indicator of future performance.

NIM (TEY) is a financial measure that the Company’s management utilizes to take into account the tax benefit associated with certain loans and securities. It is standard industry practice to measure net interest margin using tax-equivalent measures. In addition, the Company calculates NIM without the impact of acquisition accounting net accretion (adjusted NIM), as accretion amounts can fluctuate a great deal, making comparisons difficult.

The efficiency ratio is a ratio that management utilizes to compare the Company to peers. It is standard in the banking industry and widely utilized by investors.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.


· · As of · · · ·
GAAP TO NON-GAAP · December 31, · December 31, · · · ·
RECONCILIATIONS · · 2023 · · 2022 · · · ·
· (dollars in thousands, except per share data) · · · · ·
TCE/TA RATIO · · · · · · · ·
Stockholders' equity (GAAP)	$886,596	$772,724
Less: Intangible assets	152,848	154,366
TCE (non-GAAP)	$733,748	$618,358

Total assets (GAAP)	$8,538,894	$7,948,837
Less: Intangible assets	152,848	154,366
TA (non-GAAP)	$8,386,046	$7,794,471

TCE/TA ratio (non-GAAP)	8.75%	7.93%


· · For the Year Ended
· · December 31, · December 31,
· 2023 · 2022

ADJUSTED NET INCOME
Net income (GAAP)	$113,558	$99,066
Less non-core items (post-tax) (*):
Income:
Securities losses, net	$(356)	$—
Fair value gain(loss) on derivatives, net	(997)	1,560
Total non-core income (non-GAAP)	$(1,353)	$1,560
Expense:
Acquisition costs	$—	$3,198
Post-acquisition compensation, transition and integration costs	164	4,366
CECL Day 2 credit loss expense on acquired loans	—	8,651
CECL Day 2 credit loss expense on acquired OBS exposure	—	1,140
Total non-core expense (non-GAAP)	$164	$17,355


Adjusted net income (non-GAAP)	$115,075	$114,861

ADJUSTED EPS
Adjusted net income (non-GAAP) (from above)	$115,075	$114,861

Weighted average common shares outstanding	16,732,406	16,681,844
Weighted average common and common equivalent shares outstanding	16,866,391	16,890,007

Adjusted EPS (non-GAAP):
Basic	$6.88	$6.89
Diluted	$6.82	$6.80

ADJUSTED ROAA (non-GAAP)
Adjusted net income (non-GAAP) (from above)	$115,075	$114,861

Average Assets	$8,165,805	$7,206,180

Adjusted ROAA (non-GAAP)	1.41%	1.59%

ADJUSTED NIM (TEY)*
Net interest income (GAAP)	$221,006	$231,120
Plus: Tax equivalent adjustment	28,237	16,340
Net interest income - tax equivalent (non-GAAP)	$249,243	$247,460
Less: Acquisition accounting net accretion	2,173	8,581
Adjusted net interest income	$247,070	$238,879

Average earning assets	$7,435,361	$6,628,224

NIM (GAAP)	2.97%	3.49%
NIM (TEY) (non-GAAP)	3.35%	3.73%
Adjusted NIM (TEY) (non-GAAP)	3.32%	3.60%

EFFICIENCY RATIO
Noninterest expense (GAAP)	$210,531	$190,016

Net interest income (GAAP)	$221,006	$231,120
Noninterest income (GAAP)	132,684	80,729
Total income	$353,690	$311,849

Efficiency ratio (noninterest expense/total income) (non-GAAP)	59.52%	60.93%

*Non-core or non-recurring items (after-tax) are calculated using an estimated effective tax rate of 21% with the exception of acquisition costs which has an estimated effective tax rate of 13.62%.

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