Note 20 - Parent Company Only Financial Statements

12 Months Ended

Dec. 31, 2022

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, 2022 and 2021

	2022		2021
	(dollars in thousands)
Assets
Cash and due from banks	$	84,172	$	41,531
Interest-bearing deposits at financial institutions		—		5,750
Investment in bank subsidiaries		965,973		769,628
Investment in nonbank subsidiaries		7,196		5,341
Premises and equipment, net		9,639		8,632
Other assets		10,157		7,716
Total assets	$	1,077,137	$	838,598
Liabilities and Stockholders' Equity
Liabilities:
Subordinated notes	$	232,662	$	113,850
Junior subordinated debentures		48,602		38,155
Other liabilities		23,149		9,583
Total liabilities		304,413		161,588
Stockholders' Equity:
Common stock		16,796		15,613
Additional paid-in capital		370,712		273,768
Retained earnings		450,114		386,077
Accumulated other comprehensive income (loss)		(64,898)		1,552
Total stockholders' equity		772,724		677,010
Total liabilities and stockholders' equity	$	1,077,137	$	838,598

Note 20. Parent Company Only Financial Statements (continued)

Condensed Statements of Income
Years Ended December 31, 2022, 2021, and 2020

	2022		2021		2020
	(dollars in thousands)
Total interest income	$	26	$	3	$	29
Equity in net income of bank subsidiaries		128,941		117,408		79,624
Equity in net income (loss) of nonbank subsidiaries		1,294		456		(261)
Other		(53)		853		289
Total income		130,208		118,720		79,681
Interest expense		11,836		8,482		6,662
Salaries and employee benefits		15,551		12,446		11,825
Professional fees		1,789		1,983		2,558
Acquisition costs		3,715		624		—
Post-acquisition compensation, transition and integration costs		5,526		—		145
Disposition costs		—		13		312
Goodwill impairment		—		—		500
Other		3,331		2,784		2,505
Total expenses		41,748		26,332		24,507
Income before income tax benefit		88,460		92,388		55,174
Income tax benefit		10,606		6,517		5,408
Net income	$	99,066	$	98,905	$	60,582

Note 20. Parent Company Only Financial Statements (continued)

Condensed Statements of Cash Flows
Years Ended December 31, 2022, 2021, and 2020

	2022		2021		2020
	(dollars in thousands)
Cash Flows from Operating Activities:
Net income	$	99,066	$	98,905	$	60,582
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Earnings of bank subsidiaries		(128,941)		(117,408)		(79,624)
(Earnings) losses of nonbank subsidiaries		(1,294)		(456)		261
Distributions from bank subsidiaries		36,000		—		—
Distributions from nonbank subsidiaries		40		30		40
Deferred income taxes		(2,443)		(1,093)		6,909
Accretion of acquisition fair value adjustments		137		321		378
Depreciation		477		486		454
Deferred compensation expense accrued		4,062		573		—
Stock-based compensation expense		2,438		2,352		2,150
Loss on sale of subsidiary		—		—		158
Gain on sale of fixed assets		—		155		—
Goodwill impairment		—		—		500
Decrease (increase) in other assets		621		5		(7,380)
Increase (decrease) in other liabilities		10,827		(14,702)		(5,923)
Net cash provided by (used in) operating activities		20,990		(30,832)		(21,495)
Cash Flows from Investing Activities:
Net increase (decrease) in interest-bearing deposits at financial institutions		5,950		1,450		(1,599)
Capital infusion, non-bank subsidiaries		(300)		(375)		—
Net cash received in dissolution of subsidiary		—		—		8,450
Net cash paid for acquisitions		(26,039)		—		—
Net cash received in sale of subsidiary		—		—		195
Purchase of premises and equipment		(1,484)		(31)		(272)
Net cash provided by (used in) investing activities		(21,873)		1,044		6,774
Cash Flows from Financing Activities:
Proceeds from subordinated notes		100,000		—		50,000
Payment of cash dividends		(3,944)		(3,793)		(3,779)
Proceeds from issuance of common stock, net		422		670		1,360
Repurchase and cancellation of shares		(52,954)		(14,168)		(3,779)
Net cash provided by (used in) financing activities		43,524		(17,291)		43,802
Net increase (decrease) in cash and due from banks		42,641		(47,079)		29,081
Cash and due from banks:
Beginning		41,531		88,610		59,529
Ending	$	84,172	$	41,531	$	88,610