Note 20 - Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Parent Company Only Financial Statements

Note 20. Parent Company Only Financial Statements

The following is condensed financial information of QCR Holdings, Inc. (parent company only):

Condensed Balance Sheets
December 31, 2021 and 2020

	2021		2020
	(dollars in thousands)
Assets
Cash and due from banks	$	41,531	$	88,610
Interest-bearing deposits at financial institutions		5,750		7,200
Investment in bank subsidiaries		769,628		655,232
Investment in nonbank subsidiaries		5,341		4,540
Premises and equipment, net		8,632		9,242
Other assets		7,716		16,268
Total assets	$	838,598	$	781,092
Liabilities and Stockholders' Equity
Liabilities:
Subordinated notes	$	113,850	$	113,691
Junior subordinated debentures		38,155		37,993
Other liabilities		9,583		35,615
Total liabilities		161,588		187,299
Stockholders' Equity:
Common stock		15,613		15,806
Additional paid-in capital		273,768		275,807
Retained earnings		386,077		300,804
Accumulated other comprehensive income		1,552		1,376
Total stockholders' equity		677,010		593,793
Total liabilities and stockholders' equity	$	838,598	$	781,092

Note 20. Parent Company Only Financial Statements (continued)

Condensed Statements of Income
Years Ended December 31, 2021, 2020, and 2019

	2021		2020		2019
	(dollars in thousands)
Total interest income	$	3	$	29	$	77
Equity in net income of bank subsidiaries		117,408		79,624		69,966
Equity in net income (loss) of nonbank subsidiaries		456		(261)		6,797
Other		853		289		314
Total income		118,720		79,681		77,154
Interest expense		8,482		6,662		5,836
Salaries and employee benefits		12,446		11,825		8,739
Professional fees		1,983		2,558		1,545
Acquisition costs		624		—		—
Post-acquisition compensation, transition and integration costs		—		145		3,171
Disposition costs		13		312		1,606
Goodwill impairment		—		500		3,000
Other		2,784		2,505		2,147
Total expenses		26,332		24,507		26,044
Income before income tax benefit		92,388		55,174		51,110
Income tax benefit		6,517		5,408		6,298
Net income	$	98,905	$	60,582	$	57,408

Note 20. Parent Company Only Financial Statements (continued)

Condensed Statements of Cash Flows
Years Ended December 31, 2021, 2020, and 2019

	2021		2020		2019
	(dollars in thousands)
Cash Flows from Operating Activities:
Net income	$	98,905	$	60,582	$	57,408
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Earnings of bank subsidiaries		(117,408)		(79,624)		(69,966)
(Earnings) losses of nonbank subsidiaries		(456)		261		(6,797)
Distributions from nonbank subsidiaries		30		40		45,058
Deferred income taxes		(1,093)		6,909		2,498
Accretion of acquisition fair value adjustments		321		378		305
Depreciation		486		454		327
Deferred compensation expense accrued		573		—		—
Stock-based compensation expense		2,352		2,150		2,469
Loss on sale of subsidiary		—		158		—
Gain on sale of fixed assets		155		—		—
Goodwill impairment		—		500		3,000
Decrease (increase) in other assets		5		(7,380)		(2,472)
Increase (decrease) in other liabilities		(14,702)		(5,923)		7,814
Net cash provided by (used in) operating activities		(30,832)		(21,495)		39,644
Cash Flows from Investing Activities:
Net increase (decrease) in interest-bearing deposits at financial institutions		1,450		(1,599)		(4,600)
Capital infusion, bank subsidiaries		—		—		(8,600)
Capital infusion, non-bank subsidiaries		(375)		—		(100)
Net cash received in dissolution of subsidiary		—		8,450		—
Net cash received in sale of subsidiary		—		195		—
Purchase of premises and equipment		(31)		(272)		(2,861)
Net cash provided by (used in) investing activities		1,044		6,774		(16,161)
Cash Flows from Financing Activities:
Activity in other borrowings:
Paydown on revolving line of credit		—		—		(9,000)
Prepayments		—		—		(21,313)
Calls, maturities and scheduled payments		—		—		(1,799)
Proceeds from subordinated notes		—		50,000		63,393
Payment of cash dividends		(3,793)		(3,779)		(3,767)
Proceeds from issuance of common stock, net		670		1,360		1,926
Repurchase and cancellation of shares		(14,168)		(3,779)		—
Net cash provided by (used in) financing activities		(17,291)		43,802		29,440
Net increase (decrease) in cash and due from banks		(47,079)		29,081		52,923
Cash and due from banks:
Beginning		88,610		59,529		6,606
Ending	$	41,531	$	88,610	$	59,529