QCR Holdings, Inc. Announces Second Quarter 2022 Results

QCR Holdings, Inc.

Second Quarter 2022 Highlights

• Completed the acquisition of Guaranty Federal Bancshares, Inc. adding approximately $1.3 billion in assets, $808 million in loans and $1.1 billion in deposits

• Reported net income of $15.2 million, or $0.87 per diluted share

• Adjusted net income (non-GAAP) of $30.4 million, or $1.73 per diluted share

• Acquisition/Post-acquisition related expenses and CECL Day 2 provision totaled $15.5 million, post-tax, or $0.88 per diluted share

• Net Interest Margin (“NIM”) of 3.53% and Adjusted NIM (TEY)(non-GAAP) of 3.74% expanded significantly from the prior quarter by 23 and 24 basis points, respectively

• Capital Markets Revenue from Swap Fees of $13.0 million doubled from the first quarter of 2022

• Annualized loan and lease growth of 14.0% for the quarter, excluding loan balances acquired from the Guaranty Bank transaction and SBA Paycheck Protection Program (“PPP”) loans (non-GAAP)

• Repurchased 602,500 shares at an average price of $54.80 per share

MOLINE, Ill., July 26, 2022 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced net income of $15.2 million and diluted earnings per share (“EPS”) of $0.87 for the second quarter of 2022, compared to net income of $23.6 million and diluted EPS of $1.49 for the first quarter of 2022. Included in the second quarter of 2022 results were $5.7 million of acquisition/post-acquisition related expenses and $9.8 million of CECL Day 2 provision, both post-tax. The CECL Day 2 provision was required to establish the initial credit loss allowances for the acquired non-PCD loan portfolio and off-balance sheet exposure as a result of the acquisition of Guaranty Federal Bancshares, which closed on April 1, 2022.

$ in millions (except per share data)	For the Quarter Ended June 30, 2022			Per Diluted Share
Reported Net Income (GAAP)	$	15.2		$	0.87
Acquisition/Post-Acquisition Related Expenses (Post-Tax)	$	5.7		$	0.32
CECL Day 2 Provision (Post-Tax)*	$	9.8		$	0.56
Other (Post-Tax)	$	(0.3	)	$	(0.02	)
Adjusted Net Income (non-GAAP, see below)	$	30.4		$	1.73

*CECL Day 2 provision to establish the initial non-PCD loan and off-balance sheet exposure credit loss allowances under ASU 2016-13, Financial Instruments – Credit Losses, for the acquired loan portfolio.
        
Excluding acquisition/post-acquisition related expenses, the CECL Day 2 provision and other nonrecurring items, adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the second quarter of 2022 were $30.4 million and $1.73, respectively. For the first quarter of 2022, adjusted net income (non-GAAP) was $24.4 million and adjusted diluted EPS (non-GAAP) was $1.54. For the second quarter of 2021, adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $22.5 million and $1.40, respectively.

	For the Quarter Ended
	June 30,			March 31,			June 30,
$ in millions (except per share data)	2022			2022			2021
Net Income	$	15.2		$	23.6		$	22.3
Diluted EPS	$	0.87		$	1.49		$	1.39
Adjusted Net Income (non-GAAP)*	$	30.4		$	24.4		$	22.5
Adjusted Diluted EPS (non-GAAP)*	$	1.73		$	1.54		$	1.40

*Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.

“We delivered another strong quarter of net income, driven by exceptional loan growth, expanding net interest margin and well managed expenses,” said Larry J. Helling, Chief Executive Officer. “Building on the momentum we saw in the first quarter, we generated robust lending activity again in the second quarter with annualized loan growth of 14.0% after excluding the impact of the acquired portfolio and PPP activity. Adjusting for the nonrecurring items, primarily related to the closing of the Guaranty Bank acquisition, we increased core earnings by $6.0 million on a linked-quarter basis, generating an adjusted ROAA of 1.66%”

“On April 1st, we successfully completed the acquisition of Guaranty Federal Bancshares, Inc. and merged Guaranty Bank into Springfield First Community Bank with the combined bank retaining the Guaranty Bank name. We’re eager to continue to grow in the vibrant southwest Missouri region and we look forward to serving our clients and our communities.”

Net Interest Income of $59.4 Million
NIM Expanded by 23 Basis Points from the Prior Quarter

Net interest income for the second quarter of 2022 totaled $59.4 million, compared to $45.7 million for the first quarter of 2022 and $43.5 million for the second quarter of 2021. The increase in net interest income was due to an increase in average earning assets, primarily attributable to the Guaranty Bank transaction, increased organic loan growth on a linked-quarter basis, and strong NIM expansion.   Adjusted net interest income (non-GAAP) during the quarter was $61.1 million, an increase of $12.6 million, or 25.9%, from the prior quarter. Adjusted net interest income (non-GAAP) was $45.7 million for the second quarter of 2021. Acquisition-related net accretion totaled $1.7 million for the second quarter of 2022, up from $118 thousand in the first quarter of 2022 and $291 thousand for the second quarter of 2021.

In the second quarter, NIM was 3.53% and tax-equivalent yield (“TEY”) basis (non-GAAP) NIM was 3.74%, compared to 3.30% and 3.50% in the prior quarter, respectively. Adjusted NIM (non-GAAP), which excludes acquisition-related net accretion, was 3.64%, up 14 basis points from the prior quarter. The increase in Adjusted NIM (non-GAAP) during the quarter was primarily due to the impact of multiple rate increases on our asset-sensitive balance sheet as well as the addition of Guaranty Bank.

	For the Quarter Ended
	June 30,			March 31,			June 30,
	2022			2022			2021
NIM	3.53	%		3.30	%		3.28	%
NIM (TEY)(non-GAAP) *	3.74	%		3.50	%		3.46	%
Adjusted NIM (TEY)(non-GAAP) *	3.64	%		3.50	%		3.44	%
Adjusted NIM ex. PPP (TEY)(non-GAAP)*	3.63	%		3.46	%		3.32	%
* See GAAP to non-GAAP reconciliations

“Excluding the impact of acquisition-related net accretion and PPP fees, we significantly expanded our adjusted NIM during the second quarter by 17 basis points” said Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer. “Our balance sheet is well positioned to continue to drive strong NIM expansion in this rapidly rising rate environment.”

Annualized Loan and Lease Growth of 14.0%, Excluding the Guaranty Bank Acquisition and PPP Loans (non-GAAP)

During the second quarter of 2022, the Company’s loans and leases increased $970.0 million to a total of $5.8 billion. Excluding the initial loan balances from the Guaranty Bank acquisition and PPP loans (non-GAAP), loan and lease growth during the quarter was $168.7 million, or 14.0% on an annualized basis.   Core deposits (excluding brokered deposits) increased by $973.2 million during the quarter, due to the Guaranty Bank acquisition.

“Our continued robust loan growth in the second quarter was driven by strength in our traditional commercial lending, leasing and our Specialty Finance business,” added Helling. “This is a testament to the economic resiliency in our markets as well as our relationship-based community banking model, emphasizing the importance of strong relationships with new and existing clients. Given our current pipeline, we are reaffirming our targeted organic loan growth to between 10% and 12% for the full year.”

Noninterest Income of $22.8 Million

Noninterest income for the second quarter of 2022 totaled $22.8 million, compared to $15.6 million for the first quarter of 2022. The increase was primarily due to a $6.6 million increase in capital markets revenue from swap fees as well as the Guaranty Bank acquisition. Wealth management revenue was $3.5 million for the quarter, down 12.9% from the first quarter of 2022, primarily due to increased market volatility.

“Capital markets revenue totaled $13.0 million for the quarter, which was within our guidance range,” added Gipple. “Given our solid pipeline and recognizing timing continues to be impacted by project delays caused by ongoing supply chain disruptions and inflationary pressures, we continue to expect this source of fee income to be in a range of $13 to $15 million per quarter for the remainder of 2022.”

Noninterest Expenses of $54.2 Million, Including Acquisition/Post-Acquisition Related Expenses

Noninterest expense for the second quarter of 2022 totaled $54.2 million, including acquisition/post-acquisition related expenses of $6.8 million, compared to $38.3 million for the first quarter of 2022 and $35.7 million for the second quarter of 2021. The linked-quarter increase was primarily due to the inclusion of expenses from Guaranty Bank and expenses related to the acquisition. Excluding these acquisition/post-acquisition related costs, noninterest expense for the second quarter was $47.5 million.

Asset Quality Reflects Addition of Guaranty Bank

Nonperforming assets (“NPAs”) totaled $24.0 million at the end of the second quarter, an increase of $21.3 million over the first quarter of 2022, primarily the result of the Guaranty Bank acquisition and two legacy lending relationships. The ratio of NPAs to total assets was 0.33% on June 30, 2022, compared to 0.04% on March 31, 2022, and 0.17% on June 30, 2021. In addition, the Company’s criticized loans and classified loans to total loans and leases at June 30, 2022 were 2.37% and 1.43%, respectively, compared to 2.45% and 1.13% as of March 31, 2022.

The Company recorded an $11.2 million provision for credit losses in the second quarter of 2022, due solely to the CECL Day 2 provision of $12.4 million (pre-tax) as a result of the Guaranty Bank acquisition. As of June 30, 2022, the ACL on total loans/leases was 1.59%, compared to 1.55% as of March 30, 2022.

Continued Strong Capital Levels

As of June 30, 2022, the Company’s total risk-based capital ratio was 13.02%, the common equity tier 1 ratio was 9.17% and the tangible common equity to tangible assets ratio (non-GAAP) was 8.11%. By comparison, these respective ratios were 14.50%, 10.61% and 9.60% as of March 31, 2022. Total risk-based capital and the common equity tier 1 were both impacted by expected initial dilution from the Guaranty Bank acquisition. The Company’s accumulated other comprehensive income (“AOCI”) declined $24.3 million during the second quarter due to a decrease in the value of its available for sale securities portfolio and certain derivatives resulting from ongoing increases in interest rates during the quarter. While AOCI reduced the Company’s tangible common equity (non-GAAP), solid earnings partially offset this impact, which led to a decline of only 8.4% in tangible book value (non-GAAP).

During the second quarter, the Company purchased and retired 602,500 shares of its common stock at an average price of $54.80 per share as the Company finished repurchases under the original 2020 authorized plan and began repurchases under the May 2022 authorized plan. Under the 2020 share repurchase program, the Company repurchased 794,000 shares in total at an average price of $50.60 per share. The 2022 share repurchase program, announced during the second quarter of 2022, authorized an approximate 1,500,000 additional shares to be repurchased. The Company repurchased 280,000 shares during the quarter and has approximately 1,220,000 shares remaining under its 2022 share repurchase program.

Focus on Three Strategic Long-Term Initiatives

As part of the Company’s ongoing efforts to grow earnings and drive attractive long-term returns for shareholders, it continues to operate under three key strategic long-term initiatives:

• Generate organic loan and lease growth of 9% per year, funded by core deposits;

• Grow fee-based income by at least 6% per year; and

• Limit annual operating expense growth to 5% per year.
  

Conference Call Details

The Company will host an earnings call/webcast tomorrow, July 27, 2022, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through August 3, 2022. The replay access information is 877-344-7529 (international 412-317-0088); access code 7416915. A webcast of the teleconference can be accessed at the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

About Us
QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly-owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, Springfield First Community Bank, based in Springfield, Missouri, was acquired by the Company in 2018, and Guaranty Bank, also based in Springfield, Missouri, was acquired by the Company and merged with Springfield First Community Bank on April 1, 2022, with the combined entity operating under the Guaranty Bank name. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. Quad City Bank & Trust Company offers equipment loans and leases to businesses through its wholly-owned subsidiary, m2 Equipment Finance, LLC, based in Milwaukee, Wisconsin, and also provides correspondent banking services. Including the Guaranty Bank acquisition, the Company now has 40 locations in Iowa, Missouri, Wisconsin and Illinois. As of June 30, 2022, the Company had approximately $7.4 billion in assets, $5.8 billion in loans and $5.8 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “predict,” “suggest,” “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should” or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.
        
A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies(including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics (including the COVID-19 pandemic in the United States), acts of war or other threats thereof, or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB or the PCAOB; (iv) changes in local, state and federal laws, regulations and governmental policies concerning the Company’s general business; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of LIBOR phase-out); (vi) increased competition in the financial services sector and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; and (xiii) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

Contacts:
Todd A. Gipple                                
President                                
Chief Operating Officer                        
Chief Financial Officer                        
(309) 743-7745                                
tgipple@qcrh.com

QCR Holdings, Inc. Consolidated Financial Highlights (Unaudited)
	As of
	June 30,		March 31,		December 31,		September 30,		June 30,
	2022		2022		2021		2021		2021
	(dollars in thousands)
CONDENSED BALANCE SHEET
Cash and due from banks	$	92,379	$	50,540	$	37,490	$	57,310	$	55,598
Federal funds sold and interest-bearing deposits		56,532		66,390		87,662		70,826		88,780
Securities, net of allowance for credit losses		879,918		823,311		810,215		828,719		810,445
Net loans/leases		5,705,478		4,753,082		4,601,411		4,519,060		4,338,811
Intangibles		18,333		8,856		9,349		9,857		10,365
Goodwill		137,607		74,066		74,066		74,066		74,066
Derivatives		97,455		107,326		222,220		198,393		193,395
Other assets		405,239		292,248		253,719		256,277		255,952
Total assets	$	7,392,941	$	6,175,819	$	6,096,132	$	6,014,508	$	5,827,412
Total deposits	$	5,820,657	$	4,839,689	$	4,922,772	$	4,871,828	$	4,688,935
Total borrowings		583,166		443,270		170,805		183,514		198,908
Derivatives		113,305		116,193		225,135		201,450		196,092
Other liabilities		132,675		108,743		100,410		107,902		113,001
Total stockholders' equity		743,138		667,924		677,010		649,814		630,476
Total liabilities and stockholders' equity	$	7,392,941	$	6,175,819	$	6,096,132	$	6,014,508	$	5,827,412
ANALYSIS OF LOAN PORTFOLIO
Loan/lease mix:
Commercial and industrial - revolving	$	322,258	$	263,441	$	248,483	$	175,155	$	182,882
Commercial and industrial - other		1,403,689		1,374,221		1,346,602		1,465,580		1,505,384
Total commercial and industrial		1,725,947		1,637,662		1,595,085		1,640,735		1,688,266
Commercial real estate, owner occupied		628,565		439,257		421,701		434,014		427,734
Commercial real estate, non-owner occupied		889,530		679,898		646,500		644,850		618,879
Construction and land development		1,080,372		863,116		918,571		852,418		708,289
Multi-family		860,742		711,682		600,412		529,727		466,804
Direct financing leases		40,050		43,330		45,191		50,237		56,153
1-4 family real estate		473,141		379,613		377,361		376,067		382,142
Consumer		99,556		73,310		75,311		71,682		69,438
Total loans/leases	$	5,797,903	$	4,827,868	$	4,680,132	$	4,599,730	$	4,417,705
Less allowance for credit losses		92,425		74,786		78,721		80,670		78,894
Net loans/leases	$	5,705,478	$	4,753,082	$	4,601,411	$	4,519,060	$	4,338,811
ANALYSIS OF SECURITIES PORTFOLIO
Securities mix:
U.S. government sponsored agency securities	$	20,448	$	21,380	$	23,328	$	23,689	$	14,670
Municipal securities		710,638		667,245		639,799		649,486		641,603
Residential mortgage-backed and related securities		81,247		86,381		94,323		100,744		106,139
Asset backed securities		19,956		23,233		27,124		30,607		31,778
Other securities		47,827		25,270		25,839		24,367		16,429
Total securities	$	880,116	$	823,509	$	810,413	$	828,893	$	810,619
Less allowance for credit losses		198		198		198		174		174
Net securities	$	879,918	$	823,311	$	810,215	$	828,719	$	810,445
ANALYSIS OF DEPOSITS
Deposit mix:
Noninterest-bearing demand deposits	$	1,514,005	$	1,275,493	$	1,268,788	$	1,342,273	$	1,258,885
Interest-bearing demand deposits		3,758,566		3,181,685		3,232,633		3,086,711		2,976,696
Time deposits		540,074		382,268		421,348		441,743		452,171
Brokered deposits		8,012		243		3		1,101		1,183
Total deposits	$	5,820,657	$	4,839,689	$	4,922,772	$	4,871,828	$	4,688,935
ANALYSIS OF BORROWINGS
Borrowings mix:
Overnight FHLB advances (1)	$	400,000	$	290,000	$	15,000	$	30,000	$	40,000
Other short-term borrowings		1,070		1,190		3,800		1,600		7,070
Subordinated notes		133,562		113,890		113,850		113,811		113,771
Junior subordinated debentures		48,534		38,190		38,155		38,103		38,067
Total borrowings	$	583,166	$	443,270	$	170,805	$	183,514	$	198,908
(1) At the most recent quarter-end, the weighted-average rate of these overnight borrowings was 1.45%.

QCR Holdings, Inc. Consolidated Financial Highlights (Unaudited)
		For the Quarter Ended
		June 30,		March 31,			December 31,			September 30,			June 30,
		2022			2022			2021			2021			2021
		(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income		$	68,205	$	51,062		$	52,020		$	51,667		$	48,903
Interest expense			8,805		5,329			5,507			5,438			5,387
Net interest income			59,400		45,733			46,513			46,229			43,516
Provision for credit losses (1)			11,200		(2,916	)		(3,227	)		-			-
Net interest income after provision for loan/lease losses		$	48,200	$	48,649		$	49,740		$	46,229		$	43,516
Trust department fees		$	2,497	$	2,963		$	2,843		$	2,714		$	2,848
Investment advisory and management fees			983		1,036			1,047			1,054			1,039
Deposit service fees			2,223		1,555			1,644			1,588			1,492
Gain on sales of residential real estate loans			809		493			922			954			1,184
Gain on sales of government guaranteed portions of loans			-		19			227			-			-
Swap fee income/capital markets revenue			13,004		6,422			12,982			24,885			9,568
Securities gains (losses), net			-		-			-			-			(88	)
Earnings on bank-owned life insurance			350		346			470			446			451
Debit card fees			1,499		1,007			1,072			1,085			1,084
Correspondent banking fees			244		277			266			265			269
Other			1,173		1,515			1,512			1,661			1,449
Total noninterest income		$	22,782	$	15,633		$	22,985		$	34,652		$	19,296
Salaries and employee benefits		$	29,972	$	23,627		$	24,809		$	28,207		$	23,044
Occupancy and equipment expense			5,978		3,937			3,723			4,122			3,965
Professional and data processing fees			4,365		3,671			3,866			3,568			3,702
Acquisition costs			1,973		1,851			624			-			-
Post-acquisition compensation, transition and integration costs			4,796		-			-			-			-
Disposition costs			-		-			5			-			-
FDIC insurance, other insurance and regulatory fees			1,394		1,310			1,316			1,108			986
Loan/lease expense			761		267			606			308			457
Net cost of (income from) and gains/losses on operations of other real estate			59		(1	)		-			(1,346	)		(113	)
Advertising and marketing			1,198		761			1,679			1,095			853
Bank service charges			610		541			553			525			572
Correspondent banking expense			213		199			200			201			198
Intangibles amortization			787		493			508			508			508
Other			2,142		1,669			1,523			3,091			1,503
Total noninterest expense		$	54,248	$	38,325		$	39,412		$	41,387		$	35,675
Net income before income taxes		$	16,734	$	25,957		$	33,313		$	39,494		$	27,137
Federal and state income tax expense			1,492		2,333			6,304			7,929			4,788
Net income		$	15,242	$	23,624		$	27,009		$	31,565		$	22,349
Basic EPS		$	0.88	$	1.51		$	1.73		$	2.02		$	1.41
Diluted EPS		$	0.87	$	1.49		$	1.71		$	1.99		$	1.39
Weighted average common shares outstanding			17,345,324		15,625,112			15,582,276			15,635,123			15,813,932
Weighted average common and common equivalent shares outstanding			17,549,107		15,852,256			15,838,246			15,869,798			16,045,239
(1) Provision for credit losses for the quarter ended June 30, 2022 included $11.0 million related to the acquired Guaranty Bank non-PCD loans and $1.4 million related to acquired Guaranty Bank OBS exposures.

QCR Holdings, Inc. Consolidated Financial Highlights (Unaudited)
		For Six Months Ended
		June 30,			June 30,
		2022			2021
		(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income		$	119,267		$	96,468
Interest expense			14,134			10,977
Net interest income			105,133			85,491
Provision for credit losses (1)			8,284			6,713
Net interest income after provision for loan/lease losses		$	96,849		$	78,778
Trust department fees		$	5,460		$	5,649
Investment advisory and management fees			2,019			1,979
Deposit service fees			3,778			2,900
Gain on sales of residential real estate loans			1,302			2,521
Gain on sales of government guaranteed portions of loans			19			-
Swap fee income/capital markets revenue			19,426			23,125
Securities gains (losses), net			-			(88	)
Earnings on bank-owned life insurance			696			922
Debit card fees			2,506			2,059
Correspondent banking fees			521			583
Other			2,688			3,135
Total noninterest income		$	38,415		$	42,785
Salaries and employee benefits		$	53,599		$	47,891
Occupancy and equipment expense			9,915			8,073
Professional and data processing fees			8,036			7,145
Acquisition costs			3,824			-
Post-acquisition compensation, transition and integration costs			4,796			-
Disposition costs			-			8
FDIC insurance, other insurance and regulatory fees