QCR (QCRH) 27 Apr 222022 Q1 Earnings call transcript

00:03 Greetings everyone, and welcome to the QCR Holdings, Inc. Earnings Conference Call for the First Quarter of 2022. Yesterday, after our market closed, the company distributed its first quarter earnings press release. If there is anyone on the call who has not received a copy, you may access it on the company's website www.qcrh.com. 00:27 With us today from management are Larry Helling, CEO; and Todd Gipple, President, COO and CFO. brief call the to a then results provide the open questions will summary financial of and Management from analysts. begin, information providing Exchange Commission. we some as defined guidelines Before I'd Securities remind statements to XX:XX and the everyone of of forward-looking the falls management today be by will under the like that

actual materially the As these statements any the those guidelines, part forward-looking future concerning and are beliefs, differ hopes, expectations, made company's results statements projected. and of from predictions during of could this call

Additional the and turn call. Larry reminder, GAAP floor Xth, contains this directly be to It information non-GAAP hour GAAP the is may but to quantitative on release the are factors call website. afternoon, over At XX:XX through the may approximately be after other these XXXX for will is SEC May which starting one a replay The filings, included today, supplement, conference for management company's information this of to on most substitute company's be in available which not completion this well this of measures. Holdings. like XX:XX comparable refer As Additionally, I'd to accessible XX:XX Mr. Sir, financial QCR on reconciliation Helling the as time, discussed measures, the at to the to company's and non-GAAP are the measures. available website you as press intended available will on the recorded website. begin.

call financial the today. additional Welcome, will quarter regarding time taking details I operator. performance. discussion with Todd start gentlemen, quarter. for the on our the a brief XX:XX thank join ladies and for our and with first Thank results us you follow will to you,

of shareholders closed on our on April acquisition that Before to Xst. I call any a as of the want the successful Federal are result Bancshares, Guaranty today quarter, new welcome I discuss which

Missouri into and is SFC in Bank very the well. Guaranty for Southwest process going charter merged have Bank We integration

and retained Missouri recognition our Guaranty the to which and We're due loan network to market. region. strong name Bank exceptional net Southwest extensive margin, branch the by expanded carefully continue interest Turing highlighted managed expenses, quality. XX:XX have We results, in quarterly vibrant to the are continued brand, growth growth in excellent its and more eager credit

loans experience to on continue an from We demand basis, client by excluding annualized grew our and base healthy PPP. XX.X%

accelerated in finance loan the and strength commercial in specialty our Our banking, quarter businesses. growth was first leasing by driven traditional

continue gain We our improved to are capitalizing on in across market charters. share economic markets and our conditions

the our Our community our XX% relationships and outlook model clients customized full-year. remain remains growth are targeted relationship-based banking XX% growth positive. our increasing XX:XX Therefore, to we emphasizing near-term between loan loan value, healthy the pipelines loan and and importance service. for for of Our strong

loan impact up ability X basis We a interest and a decreased While rotation balance XX:XX was This mainly bearing lower which saw modestly up our first expected client excess quarter, of strong further excluding commercial expansion and our of time interest favorable core during with Bank the deposits In base, to liquidity point deposit growth. stable supported net we demand deposit margin brings to due basis the fees. loan base Guaranty to our X improve fund mix, adjusted yields. and in deposits which our expected to by PPP continue an continue to costs expanded addition, in our quarter, to our deposits. will the on change seasonality was deposits client from points, asset our support the basis core with mix sheet,

project will NIM expansion go we rate into our to quarter. Given Todd environment and expect for our XX:XX to in see the sensitive sheet, very current the details rising With are more asset his meaningful remarks. due of credit balance we second positioned fees, our non-interest respect is were well in in generated from by swap housing delays, business revenue ongoing disruptions majority a experienced low-income markets swap capital decline income, caused projects. which tax inflationary The chain by and to pressures. supply

of Over the grown demand between of short-term years has asset which robust. points strong, improved the of the diversified assets have metrics this growth. believe low And quality outsized have our credit client assets. affordable that we a basis the base, we strengthened remains result, widening. The for And long-term Our non-performing and actually remain record X our availability is fundamentals gap business again helped as challenges. a extremely total housing despite XX:XX and the our pipeline represent and and

total criticized loans to quarter. loans loans and our leases the during classified and decreased Additionally,

continue We loans net very negligible charge-offs have level and good leases. total about feel current reserve of at our to we and X.XX%

that, function is further and vibrant our markets. With Todd, Our along a of disciplined to about economic first I call over turn excellent now to quarter our will credit quality the XX:XX consistent our conditions across provide information underwriting with results.

joining Thank with I'll Larry. XX:XX Good income. Thanks net today. everyone. interest morning, us you, for start

Our adjusted down $XX.X in record income set million, the fourth interest from net our amount was for X.X% quarter. the quarter

which growth excess the our was helping quarter. expected sheet quarter PPP our loan with end. of growth the prior its strong decline balance nears the expand However, combination liquidity our liquidity With loan in XX:XX using decrease significant excess PPP lease efficiency to as due loan and and the a funded improved We fees, program linked-quarter was to entirely margin in during advances. quarter, our the forgiveness loan overnight first from our

a Our of NIM overnight mature. utilized first funds bearing to growth borrowing Our payments cost liabilities higher XX:XX capacity continue of our to of non-maturity these intentionally of using during we improved they our we during with this quarter. period. excess majority decline point adjusted mix many further advances the after rotating base, and Bank's our the are the balances We clients basis seasonal Guaranty make of interest bonus improved our cost fund by out subsequently quarter, as from repaid loan commercial typically temporarily The our for to tax X and quarter, point by as the improve total deposit quarter liquidity. end the in X the CD experienced quarter some of deposits basis XX:XX fourth

a after points. outperforming yields our the basis sheet pleased asset quarters performance decline excluding X by X of impact a expansion. of However, down to with will expanded slight XX:XX core lower now that guidance income earlier, significant rate sensitive our over several driving further our been PPP funds. cost we are our rising as significantly NIM lead mentioned of to environment, very we've of balance the basis successful points basis last asset We've NIM points, earning entering I in while X maintaining been NIM As our

Our asset past is the over three driven sensitivity the loan rate strong by years. portfolio in growth our floating

core factoring to with wholesale we NIM quarter. addition second and the had sheet, the in XX growing Guaranty funds. reliance another the expansion basis of has ahead, Bank deposits full project higher XX XX:XX Combined in success period, Looking early an same our that benefit rate the May. basis of we've from points on hike further of the points balance a of X points as we During in basis hike to in quarter rate deposits tied and reduced cost index March

quarter, income on Bank Given we are the Guaranty in interest net additional QX. second also the addition providing guidance for of

$XX.X Excluding generated for our and million interest we PPP fourth for quarter million we non-interest turning in million. accretion of million was range the acquisition second the in the than quarter. $XX net expect income to to the $XX income $XX related Now of which lower quarter, XX:XX the

revenue Larry we As of swap produced mentioned, in from $X.X capital QX. fees markets million

swap million. first range our the swap was the While markets QX sustainability continued range consistent low us has $XX nine a past is this years. [Litech] XXXX, with million our has gives result Litech production, the of has $X.X $X.X million lower a of typical $XX.X of revenue high million fee from Litech it very end million, important four this below of capital per source fees since averaged Capital (ph) which XX:XX revenue $XX quarter period, fees guidance quarter from income. in in from the averaged of confidence quarter to of During markets past same which of the

of items, project mentioned previously, Larry solid non-interest our million in of but by caused fees of to of a for this $XX we the $XX and $X.X that pipeline be quarter transactions, the XXXX. the non-core million. ongoing fee recognizing for and range totaled delays are source Excluding to supply Given first pressures expecting chain inflationary per XX:XX remainder disruptions income quarter income swap million

non-interest additional With of are Guaranty in we providing addition quarter, the the second income guidance. Bank also

$XX to of banking range range income, expense income, quarter non-interest of expenses to expenses Now expense second million. at Bank's addition and the be fourth acquisition guidance mortgage markets revenue $XX and million, quarter. of $XX expect $X for low million of to $XX.X of compared XX:XX our adjusting $XX were the $XX.X expenses. turning the on markets fee adjusting the excluding the million headwinds This retail strong capital million in to and rising business. the commercial our rates for reflects to Guaranty Non-interest compensation After the non-interest for for million, guidance performance-based for first capital quarter. revenue, totaled related while our end lower million to We

second rate Bank, quarter very the non-interest Bank, Guaranty XX:XX factoring will controlled. integration to remains but run Our in be anticipate the and of the includes non-interest from guidance expense in the our well million. incremental $XX million we $XX excludes Guaranty of costs. to remaining This expenses Looking that ahead level of addition expense range

that one points do and will be addition, total low lower until overall from acquisition XXXX. remained very quality savings strong. recognized as of assets basis In assets, Non-performing asset Larry to XX $X.X Guaranty Our year continues points the XX:XX forecast ago. we the mentioned, only at basis X quite than million represent anticipate be Bank not

recorded the losses a we qualitative factor million for provision credit in a and corresponding pandemic. $X.X in related quality reduction due asset first to to Additionally, primarily the strong quarter, continued negative the

strong and capital, of loans total remained XX credit for losses over capital allowance allowance points our down times from the non-performing XX represents strong. levels quite respect XX:XX This end Our leases, remains With of basis to assets. X.XX% XXXX. our at

of result end, and at AOCI, our Our during the December. end tangible tangible modestly of program equity to X.XX% a the compared This loan quarter share largely ratio quarter X.XX% the in was of our decline to strong common organic resumption the repurchase at growth. declined assets to

lower was rate While offset tax a AOCI for impact, XX:XX repurchases helped quarter well earnings are the quarter. linked in in on increased book and the this tax in XXXX benefits we common rate quarter net first higher to Finally, book our equity, quarter. as our from strong quarter earnings strategy intangible the from the revenue tax-exempt XX.X% which decline typically reduce to as to an was with did of basis, a plans, implemented expense a the significantly from share combined lower stock due fourth of X%, effective The in value. only X.X% the a tangible led company's ratio to our down taxable first the benefit which tax compensation

rate call normalize effective the for including of for XX%, to question. quarter we financial first our Operator, tax on questions. our XX:XX expect ready Bank. are We XX% the to back that open let's Guaranty the of results, to up added addition context With your a first range

Race question time, ahead gentlemen, today question-and-answer first XX:XX your this Piper we the Sandler. from begin Ladies will Please Nathan go question. with Our at [Operator session. comes from and Instructions]

morning. Yes. guys. Hi, Good XX:XX

Nate. XX:XX morning, Good

XX:XX Good morning, Nate.

update question if on in guidance. outlook. revenue terms may just just markets I revenue impacted future in of us you the guys updated the based I'm a curious capital Maybe on done rates swap recently? have could the I quarters guess, just of kind swap what pricing be XX:XX all appreciate

additional we've and it's pricing, start any and comments are because interest we of delays talked having the think a compared I'll Nate, that different appropriate. It's swap to The modest on causing other really know, You impact factors about. that's on rate XX:XX inflationary history Todd we which supply pressures is the future impact is just that the a the disruption the chain the project. the the really numbers to guided let in revenue, really slightly

to activity those of Our consistent really a matter projects year of It's really a with pipeline is getting just fruition. ago.

slightly a the had of So than projects have less to little expect these the that be power do at we interest we but fruition certainly rates, from vast may come during majority impact pandemic. would pricing

So maybe pressure probably increase pricing maybe XX%. XX% fees those to

Got helpful. XX:XX it. Very

Sorry. Go ahead, Todd.

drop impact average the each terms would really fee I spot point of of rates. Nate, Larry's our a XX:XX It's of about XX% just of on terms deal. on out the in in

to impact modest fairly rate. So due

of kind the are I gears in decline XX:XX somewhat guys switching the is you Understood. Maybe core I outlook. nature. in quarter think some seasonal in excess with trends of some sequential appreciate deposit in deposits the picking about liquidity. up And Guaranty, know and

expectations range So you too, some just have kind want just deposit core to $X.XX deposit But trying that expectations are maybe guys going sheet off keep that you curious guiding deposits commensurate year. this to forward, guys I'm there. expect loan that for balance XX% if may I of, growth growth the to you when you think guys about that, to XX% growth know of more are in to

team. inventory bank off accounts have That of ended Fed. XX:XX sheet Sure, a we in we excess at call the time $X.X just roughly would actually with do fair to amount correspondent in billion balance the balance at what Nate. Yes, continue

amount franchise added liquidity us our Bank We there. deposit Guaranty with in we available core of here Missouri. legacy love fair to Bank acquired to the So and Southwest

So we the expect a loan to it in elevated. settle back ratio bit down to deposit here QX do

in overnight the quarter. some in off coming of growth use to and that supplement loan of that knew Guaranty quarter, us funding because we second Bank balance paid we really really first funds was Xst advantage terms in the talked, we sheet As April taking that here for on our

growth pace not So rely robust, while we funding. is wholesale expect deposit to keep loan growth and to on with have very

saw and that question, that, happened on add in government because liquidity an excess year some because programs would will over the think of liquidity, And time. in excess interesting you're we last the first I the of some all out half, And flow that the quarter. of XX:XX I

So our on the would opening was levels space tell the you we're normal what on strong. liquidity the retail during activity for trying commercial and what and our that both is past March account new going new in is side. to be to figure clients, of the I are month What out really new

around, to moving are really base. add balances state while we're at So continuing a clients

us going along the Great. lines, just an And of Okay. about XX:XX margin I quarters over May at the next and in by end the maybe of the the position, the update in and you margin think quarter so how to couple rate both Fed I’d the and get balance of similar interest trending guys rises thinking see forward. of -- love June? those then X.X% terms sheet outlook sensitivity kind or

XX:XX Sure, Nate.

basis X opening our between plan we're margin the QX expansion help basis if XX might quarters guiding better you in said points we X comments, future XX during As that for X margin improvement. you basis points to for each know talked point really and in quarter for basis the here a about of We points improvements in second mix point basis hike. of the call

point of that to So margin. X basis with impact second the here basis hike X increased the that's full quarter, March the in of points

opening basis there, a in would of we're it's quarter. to of closing, Fed that some that hike but points Their of in they Bank our $X.XX per our less accomplished basis X blending sheet, bond point brought the NIM margin X the to X about basis as XX basis XX:XX net points that that's nets restructuring expectation, the part NIM than but in legacy legacy first but, first a points sheet basis than course, also May. is here quarter, in to the the basis balance Guaranty between indicated sensitive then balance by expansion XX adding to only legacy rate, And the solid, are the post balance of QX. our basis That points, of sheet. XX of their down due point X So while slightly rate do expecting, points another liquidity the run for sheet. basis We range in points was excess to actually more X comments, balance was we half basis a to points

we're slightly accretive acquisition another second all the of basis in that the quarter. and to from NIM there point here pivoting us has So adding

subsequent So, that's to buildup our provide upward expect XX certainly the We nine of asset margin. on continue to to quarters. of the sheet sensitive really in balance terms trajectory

balance So we're position to a perspective. very this pleased from sheet be in

Great. quarter remaining? Okay. and XX:XX And do if could one then just question. the you revenue I amount recognized in more have Todd, the housekeeping was PPP that what's of

Yes. XX:XX

would you our with remaining very guess little have comments. consistent We as

pretty fourth about the So fourth total $X.X in dropped the to impact on was quarter, quarter PPP NII in $XXX,XXX. significantly million,

for drop or It PPP was on down cause entirely have basis. dollars only and only quarter remaining NII $XXX,XXX that remaining was so balances. linked PPP. loan $XXX,XXX be million the We about in really a fees So $X to of

really the program. we're So that end at of

Thanks color. Okay. Perfect. the appreciate XX:XX I guys. back. I'll step

XX:XX Thanks, Nate.

XX:XX from And with your go Rulis Jeff question. from our next question Please D.A. ahead comes Davidson.

Good Thanks. Larry morning, and Todd. XX:XX

XX:XX Jeff. Good morning,

XX:XX Jeff. Good morning,

check Wanted Guaranty XX:XX on bit. in a little to

the first the brought Just the was of of -- couple assuming million wanted you what as a kind to basically what growth shares quarter loan transaction? of what first the month, balance know that of then in on and over still

Yes. XX:XX

shareholders million, was average based shares assets really split was issued the GFED over Their slightly that close million million cash with earning up of in the X cash XX-XX X $X.X So on the -- along did announced stock issued elections very the to through about end the billion. the GFED million $XX for were two shares.

so that balance transaction. they and and earning people Guaranty and of Jeff, the rate Very in think, of with So along really pleased the clients the number the performance brought strong on first that across. that's you terms sheet in run came for I quarter Bank probably with the assets important

expectation that? conversion the on -- your Todd timing And XX:XX

Sure. XX:XX

hard our folks really lot working we of at right April collaboration our on had make a sure So -- to of closing were all tools that Xst. implemented

aspects telephony away. helps multi-charter our And conversion operations cores fully at early and times. so us right used communication October. single dealing like And teams integrated the things platform is with the right The during to a one group structure and through to that teams time, of this now this scheduled our are are all on for transitions divergent

up financials to data cores this we're actually on We separate that's very combined operate other effectively a and the things period. during basis. two software and So here have some able powerful very rolling on

So Guaranty look we Bank. to able at one are

And check-in you. Got Todd. another XX:XX

-- the to was you Just that? linked wanted the set what X core margin core Just of up points basis into quarter? back kind

margin for -- Core XX:XX

XX:XX I'm sorry, the overall. for

On a XX:XX Bank consolidated with folded basis in -- them Guaranty with

Yes. XX:XX

XX:XX Your legacy loan first.

XX:XX Yes.

So our okay. --

at into carrying just on getting QCR XXX. stripping legacy Those this in and basis to would on quarter. The our So to that core tax guidance margin be numbers was top equivalent tax second sheet out Guaranty adjusted the forward basis legacy would accretive be that case. either a we're point layered XXX the equivalent Bank be XX balance X TEY to of each going by giving when of and or X can

Yes. Right. XX:XX

sort Just stated linked to is increase. -- of getting quarter back you basis a X point

So core I'm and talked again, of equate two. about trying point X quarter basis to those kind you linked of

you those basis decrease The points. would in give XX:XX X Got of would be you. difference revenue the that delta PPP

be Okay. quarter. one just can on The buyback. calculate. XX:XX core thought just I would had last margin you I the linked

March shareholder approval a that kind time -- in just a effectively yesterday amount quarter of Or quarter? remaining shareholder guess I that that third at of amount time or or that piece of week Was month month? end small it in the you between that, from of today the shareholders, of to-date, frame full the activity. approvals that the first of sounded kind of was the mentioned in Guaranty of Guaranty Just like was

XX:XX quarter Yes, through Jeff, that end just XXX. was

the XX:XX authorization, question a that of and that kind And Got and terms future -- Board under for appetite authorization? are Larry and discussions the it. had remaining what moderate in there broader then you the appetite is with your of you upping for both I what's the guess amount just knowing

about to meeting that couple going discuss capital facts Jeff, there, appropriate crack to At program a first your good. plan take is of beside I'll in and is our certainly few at our just Yes. same our the we're weeks next repurchase a time timing weeks, the shareholder the of reset time right overall our revisit Board meeting. XX:XX and

the today -- stocks in given bank are -- guess until of you that Do you authorization there just Okay. remaining is any meeting? XX:XX pullback to that, as I

and XX:XX point Yes. we're is certainly We and price there an we for feel do available still opportunity this undervalued like us. then some have at

Perfect. XX:XX

Okay. Thank you.

Jeff, talked the you that wasn't linked quarter number wondering on core I quarter point of question. that we badly adjusted a looking feel linked quite and what I the are top Hey, where X what maybe understanding I'm for NIM your XX:XX is is, on And basis? basis delta about

Yes, stated this was to XXX. -- on it adjusted it's -- XXX XXX is that to TEYs is XX:XX XXX,

You guys increase. quarter talking about a X basis point linked

Just is was you're the margin to -- core? at trying other referencing what that look on what

XX:XX Yes, your to question. get I back wanted why that's to Sure.

QX. taking to and out at XXX. of PPP, down in point XXX in TEY a XXX, quarter about we to then X gets compared QX the basis talking a is that XXX pretty we're There when down we strip And consistently. to last impact get the that So the

gets really the that impact that to it's of PPP stripping So X us out bps. that

it. XX:XX you. Thank Got

Jeff. Thanks, Yes. XX:XX

KBW. XX:XX ahead your DelMonte Our question. comes with Please from question Damon go next from

to XX:XX of the you Hey. just that XXX close described believer is Good X would doing discussion But, well core from to today. layer basis everybody kind Jeff's so question, that there, margin. guys. on XX correct? morning, to this, loop so points, you Not basis points Hope to on of on is the just that

XX:XX Correct.

Damon. Correct, XX:XX Yes.

XX:XX Okay. Great.

quarters quarter swap commentary seen a one Do with the they outlook. another. in to description expect is you this lower or for in why came to regards the and some good a previous quarter with we've soft -- like guess I fees, then And you. Thank reason Okay. this you gave you where provided have

quarters. Would similar of second something you kind per the it high-end the get have you where to to occur a that $XX in the of here even the You then to expect that the snap following for remainder or average back of it, quarter, blends could quarter? to million exceed year range $XX in million in but that kind of

XX:XX Yes.

a year in because while total It for think, the could little our the be million the the supply know million bit of what start, are will on cut execution these today. $XX to a we chain finding I clients think to -- through those. the work ways off slow to range given we And we things $XX projects. still slow overall

think believe today million So the for year. still the estimate really is the quarterly $XX our quarter basis per I a rest to $XX of we million best on throughout

Okay. XX:XX

last there think of was of three in the around. in deals the pricing we and had July oh, year you I quarter you case beginning the had in spoke the already July. where call That's So not said, third goes this

for them XX:XX Yes. capital the stacks inflationary chain, It's make this supply of a pressures little reset deal. smaller. Because

is I possible more always the to as second it's little consistent, third you're yet. business in It's or describing it pipeline premature a but the And give -- possible, kind that of guidance still but probably don't we want to what So is there. quarter? happens

it. Got XX:XX

that? sell quarter SFG of Okay. or there potential in exploring you're had the opportunity color around any off. that that and any securitize and loans guys where on to then you Is some update previous And the the commented them stands opportunity

not it's we because a execute in in some possibly slowed year. us year to at big that in the would securitization, later still point the the growth something still the the something It's little late in bit but want on do to rush to we future, available expect there, Yes. XX:XX we're

in know exactly the transparent I if economics give when how do transaction number possibly to the of let you loan you any in we year. plan do of work that couple net would going get that, you but to preview happens you securitization that when when a it's we guided it's a there. of would be to to we very quarters securitization So, We'll closer this be tell down a we yet. growth But road that we later the get the

Got XX:XX it.

Thank this That's Okay. the had. for very much I that commentary all you quarter.

XX:XX Thanks, Damon.

Thanks, Damon. XX:XX

comes next Martin Janney from Montgomery. go from XX:XX Brian And our with your ahead question question. Please

XX:XX morning Good guys.

Brian. Good XX:XX morning,

Brian. XX:XX Good morning,

the could, XX:XX the just Guaranty. Todd, wondered you particularly and appreciate with Hey, I color margin added quarter if all I on this

guidance increase, think about think the the on we just you at their outlook Just there. in kind margin, I -- got And of to past as think combined. look it given just loans the your variable you've thought and But if and sensitive typically of rate picture, I our liabilities the big assumed rate just some about relates on additional second kind of maybe margin, just quarter guess when betas we for if just your are? and what I'm rate assets or repricing liabilities in kind what wondering you've those assets

how that additional to through. think So about and hikes of kind think just we can

the you I'm the answer that, of that's kind don't of asking? And kind so way path know for but what best to I to of

more a XX:XX to give little fair Sure. it's RSL. Brian, insight you I RSA, think on

quarter a the combined and ended we is So basis. this on

with So pro this forma XXX. at is GFED

net in just billion have RSAs. $X shy of We

range just that understand of So one betas, that $X.X XXX so be a $X.X covered here positive now. billion high of a have made I of off you with billion roughly mentioned. the that about sensitive billion, -- that our in right significant liabilities X.X -- while have is balance think effective sheet the and most all our In rate have that in about And we've betas in starting of deposit $X the XX% some XX:XX And RSAs. RSLs terms rate $X.X us billion net side more as $X.X a would only balance a betas result, funding roughly pivots that of we so billion would had XX of we've much increases. for sheet, a RSAs, I just to of in of that

Some of those are truly index.

betas, So thus back to strong. can have they that rate But before quite not exhibited in need more hold some we runway a -- negotiated some but XX:XX they And to And are got XXX those rates. the are perform very going betas they're of hold of our think beta, we like on sensitive, as to of zero still we deposits rates increase. to XX% far. deposit that

in sensitive So RSAs, underlying not characteristics liabilities about optimistic the betas. we're the $X of having ongoing net good just rate of we feel very very the but billion

give will with margin we to We that is hike that strong the as So stay leading to continues static what's the to second guidance in fairly for XX rates. point tell us uptick as increases, quarter a very Fed little 'XX. this the those you, of think and of with we'll Is basis for about be result probably have helped? July you precise more guidance but a rest QX, that in the more will I respect

Yes. based detail after give XX:XX just accurate got if And helps. should guess Got that I That what the you're your is second, this XX be less on bottom later. hike benefit line point than you'll you X, the hike basis another at May. quarter more it. Is just guiding to May the XX in

hikes. next going diminished to that we rate insight don't enough have if this get yet once XX in see May, we I XX:XX know past returns are on we

we're I know will so We're more ready that to we narrow. we're optimistic start upward to we're a guidance see nice yet July, on seeing, We'll it's but based what getting going too think there little early to don't to that say that in have diminished returns. to for that's and I Brian, capitulate going us continue a trend.

think pricing. all on subject have loan and to insight July. market factors deposit And it's a that's Of know more I in little why we'll course, we

you. Got XX:XX

accretion, transaction, just to you Todd. the That's with purchase as -- any Todd, accounting one or Okay. No, the can think the maybe helpful. just how into -- you just how quarter? the all I appreciate color, about give get accretion, color the others, on two And on that second

XX:XX Sure.

we back and with integration. consistent So at had now shy and about seeing actually a initial what credit closing seeing our we on in transaction November We right announcement, an factored not being negative in initial around the way just of so very we non-PCD the much model. we're rate numbers $X what that interest up our million there. announced into talked for mark $XX.X variation The looking in thoughts holding of disclosed the a at are deck through of here mark of million

So three that's be million that the $XX.X roughly back over would years. accreted get

you give what of for expectations beyond. insight loan adding and to accretion bit a to will be that QX So as would little early

XX:XX Got you.

of Okay. and give equally mean of That's any change last where the there the balances much just year-end? one, the the traditional, relative that can kind buckets among to are loan update helpful. And the just you Specialty this Finance a on -- Or I was just growth the specialty? spread there? leasing today there is quarter,

pick represented the Brian, but Yes. XX:XX we of up. the into chain talked because it year, expect get had, we but that that supply Group, to evenly in disruptions our grew, of and where leaching about than traditional Litech of to more as pace business it in slowly was fairly we'd distributed XX% was the first quarter property really up the Specialty XX% and business lending our the growth

XX:XX you. Got

you, appreciate it. Larry. I it. Thanks appreciate questions the Okay. for guys. taking Thank I

XX:XX Thanks, Brian.

Brian. Thanks. XX:XX

Tamayo Raymond with XX:XX ahead from go Please Daniel question And comes James. from your question. our next

XX:XX Hey, good morning guys.

Good morning. Dan. XX:XX

go a rise follow-up further XX:XX year? you Can asked pricing. Kind quick rates of is tighten just earlier about swaps Maybe of your the as swipes if into on could potentially on on someone what detail rest Thanks. it pricing based the thoughts the a little just and more on the

duration we're pricing swap in Yes. by is the doing. things XX:XX the of going in that Certainly swap the on curve determined the yield

And maybe the performance. so pressure pricing off our has XX% of some that historic marginal been top as we talk, there end on

move, marketplace of of adjust now. As the started to in to that to to seems rates to I continue kind going pricing starting impact think that's don't are

it to comfortable continue forward supply projects while really to So other compared be year really to issue the a moving people not little point It's getting a where chain executing compressed, and pricing a of will ago the here. issues. probably is because pressures the inflationary they're bit

mortgage within income then guidance your gain you Federal? sale including And XX:XX are around the Okay. that with Guaranty on helpful. assumptions banking what curious gave fee That's of piece just the

Danny. XX:XX Yes. Sure,

was the be. what everyone post combined we run So might a additional guidance really the we thought to closing rate help provided understand x-swaps

had had $X.X Bank other income, quarter. you that GFED about So back that at Guaranty when about million legacy of QCRH in non-interest we million look $X.X the first

gave $X $XX.X The significant in range $XX on impact a of XX:XX standing Guaranty a to run community million. if certainly mortgage. we So we rate And Bank mortgage. and million strong that million, seen get have is the you news on good a has very

they're SFC. from a to of going their and the to be have a perhaps combined able market to over hold share basis, legacy We it. think We strong improve team on on very coming

there that is refi not that. assumptions $X at might pretty that there down mortgage of XX:XX that of supply. $XX maybe fortunately taking part whole the we between and So and is under number part We our did is first further rate in that mortgage static But number is delta our of for So be to look wide have not going net million course, or and of obviously and lot the that million QX pressure, activity is on material. be is expectation did a would from in be what obvious reasons. quarter a all slightly

kind down tends are course. getting stable of core more be to to we which of activity, purchase So

most purchase but already expecting for mortgage start with is are the outlook headwinds that mortgage So along have that going volume most there and -- faced our down, been of we'll of forward. we trading

of the quick with in swap guidance I'm rebound of one for in we a that that. you much for here. had here had the a impact just decline but Obviously expenses? you how kind second finally, Thank provided then fees Great. And curious Okay. the step big quarter. just down, XX:XX on

swaps? was Just in of decline with curious much how that associated the

about and Danny, was decline. Sure. related salary that expense X.X reduced commission to other XX:XX

that will, would So, to at and be the mid-point we back you $XX gave $XX million added guidance provided if we that million. in, that on of the that has expense non-interest guidance just our

back of get million on the to that gave swap expense. $XX non-interest we guidance So would

in million about a $X.X QX. was reduction it So

answering I it. questions. that's Alright, appreciate XX:XX for great. my That's all I had. Thanks

XX:XX Thanks, Danny.

XX:XX Thank you.

Jeff Davidson. go our with And follow your a from D.A. question up Rulis next ahead Please XX:XX follow-up. is from

guide I that for GAAP NII Is adjusted the on wanted or to next Thanks. the check XX.X? comparable XX quarter. to XX:XX to XX.X XX in the just

question, question. clarifying Great comment, glad clarifying or asked Jeff. XX:XX I'm you that

grossed So for up that is based on TEY. XX.X not reported

Guaranty QCR a guidance is QX, XX Bank So XX. XX.X pro on that's XX.X, combined to had forma had basis X.X, then the for again we so for non-TEY. and And our QX,

I'm you So question. clarifying that glad asked

those little of and swap and was the inflation business any that I supply The sense kind XX:XX a is Thanks, and think other mentioned eased, it pressures, consistent bit. squishy. -- In quarter is quarter? steady one there is we're own now a a kind pretty maybe is into April, that at the that in pressures that Thanks. it any early one around I get just has And throughout Larry ways Todd. all? its hope and of is words, that more other chain project to Or this and mean animal. easing finding state, it's each as the were

Yes. XX:XX

going starting would material that get certainly through out, you and You're for to think of clients forward order I find -- to I our they tell the their to of figured find to say. is a be restructuring in capital forward one, Jeff. starting transactions and squishy bit a move little not ways a right, stacks are would I it's costs on would committing materials things make that's I can over, What their so comfortable to ways work project.

adjust because outbound think I this to basis finding adjust finding on more it, to we're people this new they find ways active reaching probably it to to trying it out we're are out to and transactions. being to ways operating

we're of over. it certainly the middle say but I'd So yet, not in

XX:XX Okay. enough. Fair

it. I guys. Thank well. them But this through as think you'd helping -- you, mostly be doing is I appreciate

Jeff. Thanks, XX:XX

ladies and closing floor back to like concluding I'd Helling, turn session. question-and-answer for today's will we remarks. that, with the Larry XX:XX gentlemen, be any to over And

our XX:XX day. to look you Thank We I'd Have on us remains just forward all everyone, to great operator. you, with hope, thank a joining safe. everyone like for soon. healthy today. again call We speaking and

you XX:XX gentlemen, do we And concluding today's presentation. conference today's be call. joining with will and ladies for that, thank We

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