QCR HOLDINGS INC
For the period ended Mar 31, 2024. Filed May 9, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 9, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Loans/Leases
Total loans/leases grew 6.4% on an annualized basis during the first three months of 2024. The mix of the loan/lease types within the Company's loan/lease portfolio is presented in the following table.
| | | | | | | | | | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · · As of · · | |||||||||||||||||||
| · · March 31, 2024 · · · December 31, 2023 · · · March 31, 2023 · · | |||||||||||||||||||
| · Amount · % · · Amount · % · · Amount · % · · | |||||||||||||||||||
| · · (dollars in thousands) · · | |||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
| C&I - revolving | | $326,129 | 5% | | $325,243 | 5% | | $307,612 | 5% | | |||||||||
| C&I - other | | | 1,470,609 | | 22% | | | 1,481,778 | | 23 | | | | 1,420,331 | | 23 | | | |
| CRE - owner occupied | | | 621,069 | | 9% | | | 607,365 | | 9 | | | | 616,922 | | 10 | | | |
| CRE - non-owner occupied | | | 1,055,089 | | 16% | | | 1,008,892 | | 15 | | | | 982,716 | | 16 | | | |
| Construction and land development | | | 1,149,527 | | 17% | | | 1,420,525 | | 22 | | | | 1,208,185 | | 19 | | | |
| Multi-family | | 1,303,566 | 20% | | 996,143 | 15 | | | 969,870 | 15 | | | |||||||
| Direct financing leases | | 28,089 | 0% | | 31,164 | 1 | | | 35,373 | 1 | | | |||||||
| 1-4 family real estate | | 563,358 | 9% | | 544,971 | 8 | | | 532,491 | 9 | | | |||||||
| Consumer | | 130,900 | 2% | | 127,335 | 2 | | | 116,522 | 2 | | | |||||||
| Total loans/leases | | $6,648,336 | 100% | | $6,543,416 | 100% | | $6,190,022 | 100% | | |||||||||
| Less allowance | | (84,470) | | | | (87,200) | | | | (86,573) | | | |||||||
| Net loans/leases | | $6,563,866 | | | | | $6,456,216 | | | | | $6,103,449 | | | | | |||
| | | | | | | | | | | | | | | | | | | | |
As CRE loans have historically been the Company's largest portfolio segment, management places a strong emphasis on the underwriting and monitoring of the characteristics and composition of the Company's CRE loan portfolio. For example, management tracks the level of owner-occupied CRE loans relative to non-owner-occupied loans because owner-occupied loans are generally considered to have less risk. Additionally, the Company reviews CRE concentrations by industry in relation to risk-based capital on a quarterly basis. Approximately 41% of the CRE portfolio are LIHTC loans of which all are performing and all are pass rated.
Part I
Item 2
The following is a listing of significant industries within the Company's CRE loan portfolio. These include loans in the following portfolio segments as of March 31, 2024: CRE owner occupied, CRE non-owner occupied, certain construction and land development, multifamily and certain 1-4 family real estate. Within the CRE Loan portfolio, there is minimal office exposure, totaling $201.1 million or 3.0% of total loans at March 31, 2024.
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · · As of March 31, · · · As of December 31, · · As of March 31, | ||||||||||||||||||
| · · 2024 · · · 2023 · · · 2023 · | ||||||||||||||||||
| · Amount · % · · Amount · % · · Amount · % | ||||||||||||||||||
| | | (dollars in thousands) | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | |
| Lessors of residential buildings - LIHTC | | $1,765,908 | 41% | | $1,650,340 | 40% | | $1,499,062 | 38% | |||||||||
| Lessors of residential buildings | | | 443,136 | | 10% | | | 442,913 | | 10% | | | 403,903 | | 10% | |||
| Lessors of nonresidential buildings | | | 623,629 | 14% | | | 633,098 | 15% | | | 581,615 | 15% | ||||||
| Hotels | | 135,975 | 3% | | 135,915 | 3% | | 132,705 | 3% | |||||||||
| New housing for-sale builders | | | 85,295 | | 2% | | | 84,451 | | 2% | | | 72,007 | | 2% | |||
| New multifamily housing construction | | | 72,729 | | 2% | | | 83,310 | | 2% | | | 86,228 | | 2% | |||
| Other - LIHTC | | | 18,094 | | 0% | | | 17,951 | | 0% | | | 18,278 | | 0% | |||
| Other * | | 1,197,027 | 28% | | 1,184,897 | 28% | | 1,190,154 | 30% | |||||||||
| Total CRE loans | | $4,341,793 | | 100% | | $4,232,875 | | 100% | | $3,983,952 | | 100% | ||||||
| | | | | | | | | | | | | | | | | | | |
- “Other” consists of all other industries. None of these had concentrations greater than $59.3 million, or approximately 1.4% of total CRE loans in the most recent period presented.
The following table reflects credit quality indicators and performance of the Company’s CRE portfolio:
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · · As of March 31, · · · As of December 31, · | ||||||||||||||||||||||||
| · · 2024 · · · 2023 · | ||||||||||||||||||||||||
| · · Delinquincy Status* · · · · · % of · · · Delinquincy Status* · · · · · % of · | ||||||||||||||||||||||||
| | | | Performing | | | Nonperforming | | | Total | | CRE | | | | Performing | | | Nonperforming | | | Total | | CRE | |
| | | (dollars in thousands) | ||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Pass | | $4,226,863 | | $— | | $4,226,863 | | 98% | | $4,104,394 | | $— | | $4,104,394 | | 97% | ||||||||
| Special Mention | | | 62,032 | | | — | | | 62,032 | | 1% | | | 72,517 | | | — | | | 72,517 | | 2% | ||
| Substandard | | | 37,839 | | | 15,059 | | | 52,898 | | 1% | | | 37,488 | | | 18,476 | | | 55,964 | | 1% | ||
| Doubtful | | — | | — | | — | | 0% | | — | | — | | — | | 0% | ||||||||
| | | $4,326,734 | | $15,059 | | $4,341,793 | | 100% | | $4,214,399 | | $18,476 | | $4,232,875 | | 100% | ||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | |
| As a percentage of total CRE portfolio | | | 99.65% | | 0.35% | | 100% | | | | | 99.56% | | 0.44% | | 100% | | | ||||||
- Performing = CRE loans accruing and less than 90 days past due. Nonperforming = CRE loans on nonaccrual and accruing CRE loans that are greater than or equal to 90 days past due.
The Company’s construction and land development loan portfolio includes the following:
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| · As of · | |||||||||||||||||
| · March 31, 2024 · · · December 31, 2023 · · · March 31, 2023 · | |||||||||||||||||
| · Amount · · % · · · Amount · · % · · · Amount · · % · | |||||||||||||||||
| · (dollars in thousands) · | |||||||||||||||||
| | | | | | | | | | | | | | | | | | |
| LIHTC construction | $738,608 | 64% | | $943,101 | 66% | | $759,924 | 63% | |||||||||
| Construction (commercial) | | 341,077 | | 30% | | | 405,146 | | 29% | | | 372,819 | | 31% | |||
| Land development | | 58,675 | | 5% | | | 59,659 | | 4% | | | 14,441 | | 1% | |||
| Construction (residential) | | 11,167 | | 1% | | | 12,619 | | 1% | | | 61,001 | | 5% | |||
| Total construction and land development | $1,149,527 | | 100% | | $1,420,525 | | 100% | | $1,208,185 | | 100% | ||||||
| | | | | | | | | | | | | | | | | | |
The Company's 1-4 family real estate loan portfolio includes the following:
| ● | Certain loans that do not meet the criteria for sale into the secondary market. These are often structured as adjustable rate mortgages with maturities ranging from three to seven years to avoid long-term interest rate risk. |
| ● | A limited amount of 15-year, 20-year and 30-year fixed rate residential real estate loans that meet certain credit guidelines. |
Part I
Item 2
The remaining 1-4 family real estate loans originated by the Company were sold on the secondary market to avoid the interest rate risk associated with longer term fixed rate loans. Loans originated for this purpose were classified as held for sale and are included in the residential real estate loans above. The Company has not originated any subprime, Alt-A, no documentation, or stated income residential real estate loans throughout its history.
Following is a listing of significant equipment types within the m2 loan and lease portfolio:
| · · · · · · · · · · | ||||||||
|---|---|---|---|---|---|---|---|---|
| · As of March 31, · · As of March 31, · | ||||||||
| · 2024 · · 2023 · | ||||||||
| · Amount · % · Amount · % | ||||||||
| · (dollars in thousands) · | ||||||||
| · · · · · · · · · · | ||||||||
| Trucks, Vans and Vocational Vehicles | $85,670 | 24% | $73,221 | 23% | ||||
| Trailers | | 24,207 | 7% | | 24,061 | 7% | ||
| Construction - General | | 22,468 | 6% | | 17,040 | 5% | ||
| Tractor | | 21,416 | | 6% | | 18,620 | | 6% |
| Freightliners | | 20,127 | | 6% | | 27,401 | | 9% |
| Manufacturing - General | | 18,384 | 5% | | 17,105 | 5% | ||
| Marine - Travelifts | | 15,137 | 4% | | 14,484 | 5% | ||
| Food Processing Equipment | | 13,774 | 4% | | 13,853 | 4% | ||
| Computer Equipment | | 13,411 | | 4% | | 10,032 | | 3% |
| Aesthetic Equipment | | 12,057 | | 3% | | — | | —% |
| Other * | | 108,165 | 31% | | 105,677 | 33% | ||
| Total m2 loans and leases | $354,816 | 100% | $321,494 | 100% | ||||
*“Other” consists of all other equipment types. None of these had concentrations greater than 3% of total m2 loan and lease portfolio in the most recent period presented.
See Note 3 to the Consolidated Financial Statements for additional information regarding the Company's loan and lease portfolio.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.