QCR HOLDINGS INC
For the period ended Mar 31, 2025. Filed May 9, 2025.
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, 2025 · Filed May 9, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Executive Overview
The Company reported net income of $25.8 million and diluted EPS of $1.52 for the quarter ended March 31, 2025. By comparison, for the quarter ended December 31, 2024, the Company reported net income of $30.2 million and diluted EPS of $1.77. For the quarter ended March 31, 2024, the Company reported net income of $26.7 million, and diluted EPS of $1.58.
Part I
Item 2
The first quarter of 2025 was also highlighted by the following results and events (see section titled “GAAP to Non-GAAP Reconciliations” for additional information):
| ● | Adjusted net income (non-GAAP) of $26.0 million or $1.53 per diluted share; |
| ● | Adjusted NIM (TEY) (non-GAAP) expanded to 3.41%; |
| ● | Robust core deposit growth of 20% annualized; |
| ● | Wealth management annualized revenue growth of 14%; |
| ● | Tangible book value per share (non-GAAP) grew $1.43, or 11% annualized; and |
| ● | TCE/TA ratio (non-GAAP) improved 15 basis points to 9.70%. |
Following is a table that represents various net income measurements for the Company:
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|---|---|---|---|---|---|---|---|---|---|---|---|
| · · For the three months ended · · | |||||||||||
| · March 31, 2025 · December 31, 2024 · March 31, 2024 · | |||||||||||
| · · (dollars in thousands) · · | |||||||||||
| | | | | | | | | | | | |
| Net income | | $25,797 | | $30,225 | | $26,726 | | | |||
| | | | | | | | | | | | |
| Diluted earnings per common share | | $1.52 | | $1.77 | | $1.58 | | | |||
| | | | | | | | | | | | |
| Weighted average common and common equivalent shares outstanding | | 17,013,992 | | 17,024,481 | | 16,910,675 | | | |||
The Company reported adjusted net income (non-GAAP) of $26.0 million, with adjusted diluted EPS (non-GAAP) of $1.53 for the three months ended March 31, 2025. See section titled “GAAP to Non-GAAP Reconciliations” for additional information. Adjusted net income (non-GAAP) for the three months ended March 31, 2025 excludes a number of non-core or non-recurring items, after-tax, as set forth in the GAAP to Non-GAAP Reconciliation section.
Following is a table that represents the major income and expense categories for the Company:
| | | | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| · · For the three months ended · · | |||||||||||
| · March 31, 2025 · December 31, 2024 · March 31, 2024 | |||||||||||
| · · (dollars in thousands) · · | |||||||||||
| | | | | | | | | | | | |
| Net interest income | | $59,986 | | $61,204 | | $54,699 | | | |||
| Provision for credit losses | | 4,234 | | 5,149 | | 2,969 | | | |||
| Noninterest income | | 16,892 | | 30,625 | | 26,858 | | | |||
| Noninterest expense | | 46,539 | | 53,499 | | 50,690 | | | |||
| Federal and state income tax expense | | 308 | | 2,956 | | 1,172 | | | |||
| Net income | | $25,797 | | $30,225 | | $26,726 | | | |||
| | | | | | | | | | | | |
Following are certain noteworthy developments in the Company's financial results for the quarter ended March 31, 2025:
| ● | Net interest income in the first quarter of 2025 decreased 2% compared to the fourth quarter of 2024 due to lower nontaxable investment securities and loan yields, partially offset by a decrease in the cost of interest-bearing deposits, and increased 10% when compared to the first quarter of 2024 due to higher average earning assets. |
| ● | Provision for credit losses in the first quarter of 2025 decreased $915 thousand compared to the fourth quarter of 2024. The decrease was primarily due to lower loan growth and a decrease in total criticized assets. Provision expense increased $1.3 million when compared to the first quarter of 2024. The increase was primarily due to overall loan growth and increased net charge offs. See the “Provision for Credit Losses” section of this report for additional details. |
| ● | Noninterest income in the first quarter of 2025 decreased $13.7 million, or 45%, compared to the fourth quarter of 2024. The decrease was primarily due to lower capital markets revenue from swap fees. Capital markets |
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Part I
Item 2
revenue in the first quarter of 2025 was affected by macroeconomic and governmental uncertainty. Despite this, demand for affordable housing remains strong. The reduced activity in the first quarter of 2025 should create a larger backlog for future transactions as the Company’s capital markets activity for the second quarter of 2025 is normalizing as clients adjust to the current environment. The demand for low-income housing remains healthy and the economics associated with these tax credit projects continue to be favorable. The Company has a strong pipeline for this business and expects it to continue to be a solid source of fee income in 2025. Noninterest income in the first quarter of 2025 decreased $10.0 million, or 37%, compared to the first quarter of 2024 driven primarily by a decrease in capital markets revenue.
| ● | Noninterest expense in the first quarter of 2025 decreased $7.0 million, or 13%, compared to the fourth quarter of 2024. Noninterest expense decreased $4.2 million, or 8%, compared to the first quarter of 2024. These decreases were primarily due to lower capital markets revenue and its impact on variable compensation. |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.