QCR Holdings Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>QCR Holdings Inc. released its 2023 10-K filing, providing a comprehensive overview of its financial health and operations.</b>

AI Summary

QCR HOLDINGS INC (QCRH) filed a Annual Report (10-K) with the SEC on February 29, 2024. QCR Holdings Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The filing details the company's financial performance and position as of December 31, 2023. Key financial statement elements like Retained Earnings, Common Stock, Additional Paid-In Capital, and Accumulated Other Comprehensive Income are reported for 2023, 2022, and 2021. The report includes information on subordinated debentures with various maturity dates in 2020, 2022, and 2023. Valuation techniques and measurement inputs, including market approach and appraisal of collateral, are referenced.

Why It Matters

For investors and stakeholders tracking QCR HOLDINGS INC, this filing contains several important signals. The 10-K filing is a crucial document for investors and analysts to assess QCR Holdings' financial stability, profitability, and strategic direction over the past fiscal year. Understanding the details within this report, such as changes in equity accounts and debt instruments, is essential for evaluating the company's risk profile and future growth prospects.

Risk Assessment

Risk Level: — QCR HOLDINGS INC shows moderate risk based on this filing. The company's financial health is subject to market conditions and regulatory oversight inherent in the banking sector, as indicated by the detailed financial statements and references to valuation techniques.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to understand QCR Holdings' performance and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 2024-02-29 — Filing Date (FILED AS OF DATE)
• 165 — Public Document Count (PUBLIC DOCUMENT COUNT)
• 000-22208 — SEC File Number (SEC FILE NUMBER)
• 3097363580 — Business Phone (BUSINESS PHONE)

Key Players & Entities

• QCR HOLDINGS INC (company) — COMPANY CONFORMED NAME
• QCRH (company) — tk
• 20231231 (date) — CONFORMED PERIOD OF REPORT
• 20240229 (date) — FILED AS OF DATE
• 0000906465 (company) — CENTRAL INDEX KEY
• 6022 (industry) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (state) — STATE OF INCORPORATION
• IL (state) — STATE

FAQ

Industry Context

QCR Holdings Inc. operates within the commercial banking sector, subject to industry-specific regulations and market dynamics.

Regulatory Implications

As a commercial bank, QCR Holdings is subject to oversight from federal and state regulatory bodies, impacting its operations and financial reporting.

What Investors Should Do

1. Analyze the detailed financial statements for the fiscal year ended December 31, 2023.
2. Review the company's equity structure, including Retained Earnings, Common Stock, and Accumulated Other Comprehensive Income.
3. Examine disclosures related to subordinated debentures and valuation methods used by the company.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for the 10-K filing.
• 2024-02-29: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (Provides a detailed overview of QCR Holdings' financial condition and operations for the fiscal year.)

Year-Over-Year Comparison

This 10-K filing provides the annual financial overview for 2023, allowing for comparison with previous years' performance and financial standing.

Key Financial Figures

• $1.00 — ange on which registered Common Stock, $1.00 Par Value QCRH The Nasdaq Global Ma
• $2.45 billion — is with m2, had total segment assets of $2.45 billion and $2.31 billion as of December 31, 20
• $2.31 billion — tal segment assets of $2.45 billion and $2.31 billion as of December 31, 2023 and 2022, respe
• $2.42 billion — Falls. CRBT had total segment assets of $2.42 billion and $2.19 billion as of December 31, 20
• $2.19 billion — tal segment assets of $2.42 billion and $2.19 billion as of December 31, 2023 and 2022, respe
• $1.43 billion — s area. CSB had total segment assets of $1.43 billion and $1.30 billion as of December 31, 20
• $1.30 billion — tal segment assets of $1.43 billion and $1.30 billion as of December 31, 2023 and 2022, respe
• $2.28 billion — in area. GB had total segment assets of $2.28 billion and $2.15 billion as of December 31, 20
• $2.15 billion — tal segment assets of $2.28 billion and $2.15 billion as of December 31, 2023 and 2022, respe
• $43.0 m — ulated as 15% of aggregate capital, was $43.0 million, $55.9 million, and $26.6 million
• $55.9 m — f aggregate capital, was $43.0 million, $55.9 million, and $26.6 million, respectively,
• $26.6 m — , was $43.0 million, $55.9 million, and $26.6 million, respectively, as of December 31,
• $40.2 million — ed as 15% of aggregate capital, totaled $40.2 million as of December 31, 2023. The Company
• $2.5 million — ddition, m2's in-house lending limit is $2.5 million to a single lending/leasing entity or g

Filing Documents

• qcrh-20231231x10k.htm (10-K) — 12090KB
• qcrh-20231231xex21.htm (EX-21) — 12KB
• qcrh-20231231xex23d1.htm (EX-23.1) — 5KB
• qcrh-20231231xex31d1.htm (EX-31.1) — 17KB
• qcrh-20231231xex31d2.htm (EX-31.2) — 18KB
• qcrh-20231231xex32d1.htm (EX-32.1) — 8KB
• qcrh-20231231xex32d2.htm (EX-32.2) — 8KB
• qcrh-20231231xex97d1.htm (EX-97.1) — 34KB
• qcrh-20231231x10k003.jpg (GRAPHIC) — 55KB
• 0001558370-24-002208.txt (&nbsp;) — 49908KB
• qcrh-20231231.xsd (EX-101.SCH) — 172KB
• qcrh-20231231_cal.xml (EX-101.CAL) — 180KB
• qcrh-20231231_def.xml (EX-101.DEF) — 814KB
• qcrh-20231231_lab.xml (EX-101.LAB) — 1330KB
• qcrh-20231231_pre.xml (EX-101.PRE) — 1235KB
• qcrh-20231231x10k_htm.xml (XML) — 15036KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 15 Item 1B. Unresolved Staff Comments 31 Item 1C. Cybersecurity 31 Item 2.

Properties

Properties 32 Item 3.

Legal Proceedings

Legal Proceedings 32 Item 4. Mine Safety Disclosures 32 Part II 33 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33 Item 6. [Reserved] 35 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 General 36 Critical Accounting Policies and Critical Accounting Estimates 36 Executive Overview 38 Strategic Financial Metrics 39 Strategic Developments 40 GAAP to Non-GAAP Reconciliations 41 Net Interest Income and Margin (Tax Equivalent Basis)(Non-GAAP) 43 Results of Operations 45 Interest Income 45 Interest Expense 46 Provision for Credit Losses 46 Noninterest Income 47 Noninterest Expenses 49 Income Tax Expense 51 Financial Condition 51 Overview 51 Investment Securities 51 Loans/Leases 53 Allowance for Credit Losses on Loans/Leases and OBS Exposures 54 Nonperforming Assets 57 Deposits 58 Short-Term Borrowings 59 FHLB Advances and Other Borrowings 59 Subordinated Notes 59 Junior Subordinated Debentures 60 Stockholders' Equity 60 Liquidity and Capital Resources 61 Commitments, Contingencies, Contractual Obligations, and Off-Balance Sheet Arrangements 62 Impact of Inflation and Changing Prices 63

Forward-Looking Statements

Forward-Looking Statements 63 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 65 Item 8. Consolidated Financial Statements 67 Consolidated Balance Sheets as of December 31, 2023 and 2022 70 Consolidated Statements of Income for the years ended December 31, 2023, 2022 and 2021 71 2 Table of Contents Consolidated Statements of Comprehensive Income for the years ended December 31, 2023, 2022 and 2021 72 Consolidated Statements of Changes in Stockholders' Equity for the years ended December 31, 2023, 2022 and 2021 73 Consolidated Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021 74

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 76 Note 1 : Nature of Business and Significant Accounting Policies 76 Note 2 : Mergers/Acquisitions/Sales 92 Note 3 : Investment Securities 95 Note 4 : Loans/Leases Receivable 99 Note 5: Securitizations and Variable Interest Entities 109 Note 6: Premises and Equipment 111 Note 7 : Goodwill and Intangibles 112 Note 8 : Derivatives and Hedging Activities 114 Note 9 : Deposits 118 Note 10 : Short-Term Borrowings 119 Note 11 : FHLB Advances 119 Note 12 : Other Borrowings and Unused Lines of Credit 120 Note 13 : Subordinated Notes 120 Note 14 : Junior Subordinated Debentures 122 Note 15 : Federal and State Income Taxes 123 Note 16 : Employee Benefit Plans 125 Note 17 : Stock-Based Compensation 126 Note 18 : Regulatory Requirements and Restrictions on Dividends 129 Note 19 : Earnings Per Share 131 Note 20 : Commitments and Contingencies 131 Note 21: Parent Company Only Financial Statements 133 Note 22 : Fair Value 136 Note 23 : Business Segment Information 139 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 140 Item 9A.

Controls and Procedures

Controls and Procedures 140 Item 9B. Other Information 143 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 143 Part III 144 Item 10. Directors, Executive Officers and Corporate Governance 144 Item 11.

Executive Compensation

Executive Compensation 144 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 144 Item 13. Certain Relationships and Related Transactions, and Director Independence 145 Item 14. Principal Accountant Fees and Services 145 Part IV 145 Item 15. Exhibits and Financial Statement Schedules 145 Item 16. Form 10-K Summary 147

Signatures

Signatures 148 Appendix A. Supervision and Regulation 150 Throughout the Notes to the Consolidated Financial Statements, Management's Discussion and Analysis of Financial Condition and Results of Operations, and remaining sections of this Form 10-K (including appendices), we use certain acronyms and abbreviations, as defined in Note 1 to the Consolidated Financial Statements. 3 Table of Contents Part I

Business

Item 1. Business General. QCR Holdings, Inc. is a multi-bank holding company headquartered in Moline, Illinois, that was formed in February 1993 under the laws of the state of Delaware. In 2016, the Company elected to operate as a financial holding company under the BHCA. The Company serves the Quad Cities, Cedar Rapids, Waterloo/Cedar Falls, Des Moines/Ankeny and Springfield communities through the following four wholly-owned banking subsidiaries (collectively, the "Banks"), which provide full-service commercial and consumer banking and trust and asset management services: Quad City Bank & Trust (QCBT), which is based in Bettendorf, Iowa, and commenced operations in 1994; Cedar Rapids Bank & Trust (CRBT), which is based in Cedar Rapids, Iowa, and commenced operations in 2001; Community State Bank (CSB), which is based in Ankeny, Iowa, and was acquired in 2016; and Guaranty Bank (GB), which is based in Springfield, Missouri, and was acquired in 2018. On April 1, 2022, the Company completed its acquisition of GFED and on April 2, 2022 merged Guaranty Bank into SFCB, the Company's Springfield-based charter. The combined bank changed its name to Guaranty Bank. See Note 2 to the Consolidated Financial Statements for further discussion on mergers, acquisitions and sales. The Company engages in direct financing lease contracts and equipment financing agreements through m2, a wholly owned subsidiary of QCBT based in Waukesha, Wisconsin. Subsidiary Banks. Segments of the Company have been established by management as defined by the structure of the Company's internal organization, focusing on the financial information that the Company's operating decision-makers routinely use to make decisions about operating matters. The Company's Commercial Banking business is geographically divided by markets into the operating segments corresponding to the four subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB and GB. See the Consolidated Financial Statements incorp

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