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.
See the whole filing, with its images and exhibitsContents
Provision for Credit Losses
The ACL is established through provision expense to provide an estimated ACL. The following table shows the components of the provision for credit losses for the three months ended March 31, 2025 and 2024:
| | | | | | | | | |
|---|---|---|---|---|---|---|---|---|
| · · Three Months Ended · · | ||||||||
| · · March 31, · · March 31, · · | ||||||||
| · 2025 · 2024 · · | ||||||||
| | | (dollars in thousands) | | | ||||
| | | | | | | | | |
| Provision for credit losses - loans and leases | | $4,743 | | $3,736 | | | ||
| Provision for credit losses - off-balance sheet exposures | | | (509) | | | (322) | | |
| Provision for credit losses - available for sale securities | | — | | (445) | | | ||
| Total provision for credit losses | | $4,234 | | $2,969 | | | ||
| | | | | | | | | |
The Company had a total provision for credit losses on loans and leases of $4.7 million for the first quarter of 2025, an increase from $1.0 million for the same period of 2024, primarily driven by loan growth and increased net charge-offs. The provision related to OBS was negative $509 thousand for the first quarter of 2025 compared to a provision related to OBS of negative $332 thousand for the first quarter of 2024. The decrease was due to a decreased balance in unfunded commitments. There was no provision related to HTM securities for the first quarter of 2025 or 2024. There was no provision related to AFS securities for the first quarter of 2025, compared to a negative provision of $445 thousand on AFS securities for the first quarter of 2024 with the change in fair value of a debt investment in a failed bank. This was a legacy investment acquired as part of the 2022 GFED acquisition, for which an allowance equal to the entire value of the bond was established f in March 2023. A partial recovery in value occurred due to favorable changes in market conditions during 2024, and the investment was then sold in 2024.
The ACL for loans and leases is established based on a number of factors, including the Company's historical loss experience, delinquencies and charge-off trends, economic and other forecasts, the local, state and national economies and risk associated with the loans/leases and securities in the portfolio, as described in more detail in the “Critical Accounting Policies and Critical Accounting Estimates” section of this report.
The Company had an ACL for loans/leases held for investment of 1.32% of total gross loans/leases held for investment at March 31, 2025, compared to 1.32% at December 31, 2024 and 1.33% at March 31, 2024. Management evaluates the allowance needed on loans acquired in previous acquisitions, factoring in the remaining discount, which was $2.1 million and $3.5 million at March 31, 2025 and March 31, 2024, respectively.
Additional discussion of the Company's allowance can be found in the “Financial Condition” section of this report.
Part I
Item 2
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.