QCR HOLDINGS INC
For the period ended Dec 31, 2024. Filed Feb 28, 2025.
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FY2024 · Filed Feb 28, 2025
QCRH$103.26+2.4%Stored close · as of Nov 9, 2026
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Strategic Developments
The Company took the following actions in 2024 to support our corporate strategy and further the strategic financial metrics shown above:
| ● | The Company grew loans and leases in 2024 by 3.7%, or 9.6% when excluding the $386.5 million in loan securitizations completed during the year. The loan growth was driven by both LIHTC and our traditional lending and leasing businesses. |
| ● | The Company completed two LIHTC loan securitizations in 2024, with a total outstanding principal balance at the securitization date of $389.8 million and a total carrying value on these loans of $386.5 million. The securitizations consisted of $230.7 of nontaxable LIHTC loans through a Freddie Mac sponsored M-series transaction, and $155.8 million of taxable LIHTC loans through a Freddie Mac sponsored Q-series transaction. The Company recorded a net gain on the transactions of $955 thousand reported in capital markets revenue on the consolidated statements of income. The Company plans to continue to utilize securitizations as a liquidity and management tool, and to provide additional capacity to produce LIHTC loans and the related capital markets revenue. |
| ● | Correspondent banking continues to be a core line of business for the Company. The Company is competitively positioned with experienced staff, software systems and processes to continue growing in the four states it currently serves – Iowa, Wisconsin, Missouri and Illinois. The Company acts as the correspondent bank for 189 downstream banks with total noninterest bearing deposits of $76.6 million and total interest-bearing deposits of $611.5 million as of December 31, 2024. This line of business provides a strong source of noninterest bearing and interest-bearing deposits, fee income, high-quality loan participations and bank stock loans. The Company also manages off-balance sheet liquidity held at the Federal Reserve on behalf of the downstream banks, which totaled $439.0 million as of December 31, 2024 as compared to $214.9 million as of December 31, 2023. |
| ● | The Company is focused on executing interest rate swaps on select commercial loans, including LIHTC permanent loans. The interest rate swaps help the commercial borrowers obtain a fixed interest rate while the Company receives a variable interest rate as well as an upfront nonrefundable fee dependent on the pricing. Management believes that these swaps help the Company more efficiently manage its interest rate risk. The Company will continue to review opportunities to execute these swaps at all of its subsidiary banks, as the circumstances are appropriate for the borrower and the Company. Levels of capital markets revenue from swap fee income are influenced by prevailing interest rates. Capital markets revenue, primarily from swap fee income totaled $71.1 million in 2024 as compared to $92.1 million in 2023. Capital markets revenue from swap fees averaged $17.8 million per quarter for the year 2024 and $23.0 million per quarter for the year 2023. |
| ● | Over many years, the Company has been successful in expanding its wealth management client base. Trust and investment advisory and management fees continue to be a significant contributor to noninterest income. Assets under management increased by $1.1 billion in 2024. There were 469 new relationships added in 2024 totaling $1.5 billion of new assets under management. Income is generated primarily from fees charged based on assets under administration for corporate and personal trusts and for custodial services. The majority of the trust fees are determined based on the value of the investments within the fully-managed trusts. Similar to trust fees, investment advisory and management fees are largely determined based on the value of the investments managed. The Company expects trust and investment advisory and management fees to be negatively impacted during periods of lower market valuations and positively impacted during periods of higher market valuations. The Company has recently expanded its wealth management client base into the southwest Missouri and the central Iowa markets. |
| ● | Noninterest expense in 2024 totaled $207.6 million as compared to $210.5 million in 2023. The decrease was primarily due to a reduction in salaries and benefits expenses related to lower variable incentive compensation and fewer FTEs. |
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