Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (I.R.S. Employer Identification No.) 3551 7 th Street, Moline, Illinois 61265 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______to________ Commission file number 0-22208 QCR HOLDINGS, INC. (Exact nam ...

Financial Data and Key Metrics Changes - The company reported a 13% improvement in earnings per share (EPS) over the first quarter, driven by increased net interest income and disciplined expense management [3][19] - Net interest income for the quarter was $62 million, a $2 million increase from the first quarter, with a net interest margin (NIM) expansion of 4 basis points [19][20] - Adjusted return on average assets (ROAA) was 1.29%, contributing to the increase in EPS [6][24] - Total non-interest expenses were $49.6 million, an increase of $3 million, but down 9% on an annualized basis compared to the first half of 2024 [23][24] Business Line Data and Key Metrics Changes - Loan growth reached an annualized rate of 8%, with strong new loan production, despite a planned runoff of M2 equipment finance loans [3][26] - Capital markets revenue improved significantly, up more than 50% from the first quarter, totaling $10 million for the second quarter [4][21] - Wealth management revenue remained consistent at $5 million for the second quarter, reflecting an 8% growth compared to the same period in 2024 [22] Market Data and Key Metrics Changes - The company holds the number one market share in the Quad Cities and Cedar Rapids, Iowa markets, and is ranked sixth in Des Moines, Iowa, indicating strong competitive positioning [9][10] - Total deposits declined slightly by $19 million or 1% on an annualized basis during the second quarter, while average deposit balances rose by $72 million compared to the first quarter [27] Company Strategy and Development Direction - The company is focused on three primary lines of business: traditional banking, wealth management, and LITEQ lending, with significant opportunities identified in each [8][14] - A digital transformation initiative is underway to improve operational efficiency and enhance customer experience, expected to be completed by the first half of 2027 [11][12] - The company aims to strengthen its core deposit base as a top strategic initiative, which is expected to improve funding mix and profitability [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about solid loan growth for the remainder of the year, guiding for gross loan growth in the range of 8% to 10% in the second half [4][6] - The company anticipates capital markets revenue to normalize over the next four quarters, with a strong pipeline of transactions expected to close [5][6] - Management highlighted the importance of relationships in navigating economic uncertainties and emphasized the company's commitment to community engagement [7] Other Important Information - The company plans to call and replace $70 million of subordinated debt in September, which is expected to maintain current Tier 2 total risk-based capital levels [30][74] - The effective tax rate for the quarter was 5%, up from 1% in the prior quarter, primarily due to higher pretax income [31][32] Q&A Session All Questions and Answers Question: Can you talk about the margin and the outlook? - The company is guiding for a static to up four basis points in NIM for the third quarter, assuming no Fed rate cuts [34][35] Question: What is the appetite for buybacks going forward? - The company is building capital at a fast pace and will evaluate capital deployment options in the back half of the year [51][53] Question: What are the implications of the latest legislation for affordable housing? - Management does not anticipate immediate impacts but sees significant long-term implications for LITEQ allocations [56][58] Question: Can you provide insights on the credit side, particularly non-performing loans? - There is a high correlation between the decline in non-performing loans and net charge-offs, primarily from the M2 equipment finance segment [111][112]

Shares of QCR Holdings have returned +12.1% over the past month versus the Zacks S&P 500 composite's +5.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term. Efficiency Ratio (Non-GAAP): 58.9% compared to the 55.9% average estimate based on three analysts. Net interest margin (GAAP): 3% compared to the 3.5% average estimate based on three analysts. Average Balance - Total earning assets: $8.38 billion versus the two-analyst aver ...

QCR Holdings (QCRH) came out with quarterly earnings of $1.73 per share, beating the Zacks Consensus Estimate of $1.63 per share. This compares to earnings of $1.73 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +6.13%. A quarter ago, it was expected that this bank holding company would post earnings of $1.52 per share when it actually produced earnings of $1.53, delivering a surprise of +0.66%.Over the last four quarters, th ...

[QCR Holdings, Inc. Second Quarter 2025 Earnings Release](index=1&type=section&id=QCR%20Holdings%2C%20Inc.%20Second%20Quarter%202025%20Earnings%20Release) [Second Quarter 2025 Financial Highlights](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Highlights) The company reported strong Q2 2025 results driven by net interest income growth, margin expansion, and disciplined expense management Q2 2025 Key Financial Results | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $29.0M | $25.8M | $29.1M | | Diluted EPS | $1.71 | $1.52 | $1.72 | | Adjusted Net Income | $29.4M | $26.0M | $29.3M | | Adjusted Diluted EPS | $1.73 | $1.53 | $1.73 | - Key performance drivers included a **4 basis point expansion** in Net Interest Margin (TEY) to **3.46%**, a **51% linked-quarter growth** in capital markets revenue, and a **13% annualized growth** in tangible book value per share to **$53.28**[8](index=8&type=chunk)[46](index=46&type=chunk) - The company's Tangible Common Equity to Tangible Assets (TCE/TA) ratio **improved by 22 basis points to 9.92%**, and nonperforming assets saw a significant **decline of $5.5 million, or 11%**[8](index=8&type=chunk) [Management Discussion and Analysis](index=1&type=section&id=Management%20Discussion%20and%20Analysis) Management highlighted strong performance driven by NII growth, a surge in capital markets revenue, and excellent asset quality [Net Interest Income and Margin](index=1&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income grew to $62.1 million, with the tax-equivalent net interest margin expanding by 4 basis points to 3.46% Net Interest Income & Margin Performance | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Interest Income | $62.1M | $60.0M | | Net Interest Margin (NIM) | 2.97% | 2.95% | | NIM (TEY Basis) | 3.46% | 3.42% | - The company anticipates continued margin expansion, guiding for Q3 2025 NIM TEY to range from **flat to an increase of four basis points**[9](index=9&type=chunk) [Noninterest Income](index=2&type=section&id=Noninterest%20Income) Noninterest income rose to $22.1 million, primarily driven by a 51% increase in capital markets revenue to $9.9 million Noninterest Income Breakdown | Component | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Total Noninterest Income | $22.1M | $16.9M | | Capital Markets Revenue | $9.9M | $6.5M | | Wealth Management Revenue | $4.6M | ~$4.9M | - The company reaffirms guidance for Capital Markets revenue to be **$50-$60 million** over the next four quarters and projects **$13-$16 million** for Q3 2025[13](index=13&type=chunk) [Noninterest Expense](index=2&type=section&id=Noninterest%20Expense) Noninterest expense totaled $49.6 million, below guidance, with an efficiency ratio of 58.9% - Noninterest expense increased by $3.1 million linked-quarter to **$49.6 million**, primarily due to higher variable compensation and digital transformation costs[15](index=15&type=chunk) - The company's efficiency ratio was **58.9%** in Q2 2025, with guidance for Q3 2025 noninterest expense set at **$52 to $55 million**[16](index=16&type=chunk) [Loan and Deposit Activity](index=2&type=section&id=Loan%20and%20Deposit%20Activity) Loan balances grew at an 8% annualized rate, while total deposits saw a slight decline after robust prior-quarter growth - Total loans held for investment grew by $102.6 million to $6.9 billion; adjusted for planned runoffs, annualized growth was **8%**[18](index=18&type=chunk) - The company guides for gross loan growth of **8% to 10%** in the second half of 2025[18](index=18&type=chunk) - Total deposits declined slightly by $19.0 million in Q2, but core deposits have grown by **$311 million (9% annualized)** year-to-date[20](index=20&type=chunk) [Asset Quality](index=3&type=section&id=Asset%20Quality) Asset quality remained strong, with nonperforming assets declining by 11% and the NPA to total assets ratio improving to 0.46% Asset Quality Metrics | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Nonperforming Assets (NPAs) | $42.7M | $48.2M | | NPAs to Total Assets | 0.46% | 0.53% | | Criticized Loans to Total Loans | 2.16% | 2.06% | | Provision for Credit Losses | $4.0M | $4.2M | | ACL to Total Loans | 1.28% | 1.32% | - Net charge-offs were **$6.3 million**, an increase of $2.1 million from the prior quarter, primarily due to charging off previously fully reserved loans[24](index=24&type=chunk) [Capital and Shareholder Value](index=3&type=section&id=Capital%20and%20Shareholder%20Value) The company demonstrated strong capital accretion, with a 13% annualized increase in tangible book value per share - Tangible book value per share grew by $1.64 to **$53.28**, a **13% annualized increase**[26](index=26&type=chunk)[46](index=46&type=chunk) Key Capital Ratios | Ratio | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | TCE / TA Ratio | 9.92% | 9.70% | | Total Risk-Based Capital | 14.26% | 14.18% | | Common Equity Tier 1 | 10.43% | 10.27% | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) The statements detail a financial position with $9.2 billion in assets, $6.9 billion in loans, and $7.3 billion in deposits [Condensed Balance Sheet](index=5&type=section&id=Condensed%20Balance%20Sheet) As of June 30, 2025, total assets grew to $9.24 billion, with stable deposits and an increase in stockholders' equity Key Balance Sheet Items (in billions) | Account | June 30, 2025 | March 31, 2025 | | :--- | :--- | :--- | | Total Assets | $9.24 | $9.15 | | Loans/Leases Held for Investment | $6.92 | $6.82 | | Total Deposits | $7.32 | $7.34 | | Total Stockholders' Equity | $1.05 | $1.02 | [Income Statement](index=7&type=section&id=Income%20Statement) For Q2 2025, the company generated $62.1 million in net interest income, resulting in a net income of $29.0 million Q2 2025 Income Statement Summary (in millions) | Account | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $62.1 | $60.0 | $56.2 | | Provision for Credit Losses | $4.0 | $4.2 | $5.5 | | Total Noninterest Income | $22.1 | $16.9 | $30.9 | | Total Noninterest Expense | $49.6 | $46.5 | $49.9 | | Net Income | $29.0 | $25.8 | $29.1 | [Key Performance and Capital Ratios](index=10&type=section&id=Key%20Performance%20and%20Capital%20Ratios) Key ratios for Q2 2025 showed solid profitability and efficiency, with an ROAA of 1.27% and an efficiency ratio of 58.89% Q2 2025 Key Ratios | Ratio | Q2 2025 | | :--- | :--- | | Return on Average Assets (ROAA) | 1.27% | | Return on Average Equity (ROAE) | 11.15% | | Net Interest Margin (TEY) | 3.46% | | Efficiency Ratio | 58.89% | | Total Risk-Based Capital Ratio | 14.26% | [Asset Quality Analysis](index=12&type=section&id=Asset%20Quality%20Analysis) Asset quality metrics indicated a healthy portfolio, with nonperforming assets at 0.46% of total assets Asset Quality Metrics (as of June 30, 2025) | Metric | Value | | :--- | :--- | | Total Nonperforming Assets | $42.7M | | Nonperforming Assets / Total Assets | 0.46% | | ACL / Total Loans Held for Investment | 1.28% | | ACL / Nonperforming Loans | 208.84% | | Total Criticized Loans | $149.7M | [Supplementary Information](index=3&type=section&id=Supplementary%20Information) This section provides conference call details, forward-looking statement disclaimers, and non-GAAP financial reconciliations [GAAP to Non-GAAP Reconciliations](index=15&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliations) The report reconciles GAAP measures to non-GAAP metrics like adjusted net income to clarify core operational performance - The company provides non-GAAP reconciliations to exclude non-core items and provide what management believes is a more realistic view of future performance[65](index=65&type=chunk) Key Q2 2025 GAAP vs. Non-GAAP Metrics | Metric | GAAP | Non-GAAP (Adjusted) | | :--- | :--- | :--- | | Net Income | $29.0M | $29.4M | | Diluted EPS | $1.71 | $1.73 | | ROAA (annualized) | 1.27% | 1.29% | | Net Interest Margin (TEY) | 3.46% | 3.45% (excl. acq. accretion) | [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements subject to risks and uncertainties that could cause results to differ materially - The document includes forward-looking statements identifiable by words like **"believe," "expect," "anticipate," and "guidance"**[31](index=31&type=chunk) - A wide range of factors could cause actual results to differ, including **economic conditions, regulatory changes, and credit risk**[32](index=32&type=chunk)

Financial Performance - The company reported a net income of $29.0 million and diluted earnings per share (EPS) of $1.71 for Q2 2025, an increase from $25.8 million and $1.52 in Q1 2025 [1][21] - Adjusted net income for Q2 2025 was $29.4 million with an adjusted diluted EPS of $1.73, compared to $26.0 million and $1.53 in Q1 2025 [2][21] - The net interest income for Q2 2025 was $62.1 million, reflecting a $2.1 million increase or 14% annualized from Q1 2025 [5][21] Net Interest Income and Margin - The net interest margin (NIM) for Q2 2025 was 2.97%, with a tax-equivalent yield (TEY) of 3.46%, up from 2.95% and 3.42% in Q1 2025 [5][6] - The company anticipates continued margin expansion, guiding for a potential increase in Q3 NIM TEY by up to four basis points [6] Noninterest Income - Noninterest income for Q2 2025 was $22.1 million, up from $16.9 million in Q1 2025, driven by a 51% increase in capital markets revenue [8][10] - Wealth management revenue totaled $4.6 million, showing an 8% increase compared to Q2 2024 [8] Loan Growth - Total loans and leases held for investment grew by $102.6 million to $6.9 billion in Q2 2025, representing an 8% annualized growth rate [15] - The company expects gross loan growth in the range of 8% to 10% for the second half of the year [15] Deposit and Asset Quality - Total deposits slightly declined by $19.0 million or 1% annualized from Q1 2025, while average deposit balances increased by $72.0 million [17] - The nonperforming assets (NPAs) to total assets ratio was 0.46%, down seven basis points from the prior quarter, with NPAs totaling $42.7 million [19] Capital and Book Value - Tangible book value per share increased by $1.64 or 13% annualized during Q2 2025 [24] - The tangible common equity to tangible assets (TCE/TA) ratio improved by 22 basis points to 9.92% [25]

Core Viewpoint - The market anticipates a year-over-year decline in QCR Holdings' earnings due to lower revenues, with a focus on how actual results will compare to estimates [1][3]. Earnings Expectations - QCR Holdings is expected to report quarterly earnings of $1.63 per share, reflecting a -5.8% change year-over-year [3]. - Revenues are projected to be $84.65 million, down 2.8% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [4]. - A positive Earnings ESP of +2.45% suggests recent bullish sentiment among analysts, although the stock holds a Zacks Rank of 4, complicating predictions of an earnings beat [12]. Earnings Surprise History - In the last reported quarter, QCR Holdings had an earnings surprise of +0.66%, reporting $1.53 per share against an expectation of $1.52 [13]. - The company has beaten consensus EPS estimates in all of the last four quarters [14]. Comparison with Industry Peers - Old National Bancorp, another player in the Zacks Banks - Midwest industry, is expected to post earnings of $0.51 per share, indicating a +10.9% year-over-year change, with revenues expected to rise by 29.3% [18][19]. - Old National Bancorp has a positive Earnings ESP of +5.06% and a Zacks Rank of 2, suggesting a higher likelihood of beating consensus EPS estimates [19][20].

MOLINE, Ill., July 02, 2025 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (“QCRH” or the “Company”) announced today that its second quarter ended June 30, 2025, financial results will be released after the market closes on Wednesday, July 23, 2025. The Company will host a conference call and webcast the next day, Thursday, July 24, 2025, at 10:00 a.m. Central Time to discuss the results. Shareholders, analysts, and other interested parties are invited to join. Teleconference: Dial-in information fo ...

Financial Performance - Net interest income for the three months ended March 31, 2025, was $59,986 thousand, an increase of 9.4% compared to $54,699 thousand for the same period in 2024[14]. - Net income for the three months ended March 31, 2025, was $25,797 thousand, a decrease of 3.5% from $26,726 thousand in the same period of 2024[14]. - Basic earnings per common share for Q1 2025 was $1.53, slightly down from $1.59 in Q1 2024[14]. - The company reported a comprehensive income of $26,201 thousand for Q1 2025, compared to $21,353 thousand in Q1 2024, indicating an increase of 22.0%[16]. - The effective tax rate for Q1 2025 was exceptionally low at 1%, down from 4% in Q1 2024, primarily due to tax benefits from equity compensation and lower pre-tax income[73]. - Tax credits recognized for Q1 2025 amounted to $2,707,000, compared to $2,204,000 in Q1 2024, reflecting an increase in tax credit programs[75]. Asset and Deposit Growth - Total assets increased to $9,152,779 thousand as of March 31, 2025, up from $9,026,030 thousand at December 31, 2024, representing a growth of 1.4%[12]. - Total deposits increased to $7,337,390 thousand as of March 31, 2025, compared to $7,061,187 thousand at December 31, 2024, reflecting a growth of 3.9%[12]. - The balance of retained earnings increased to $689,953,000 as of March 31, 2025, up from $580,710,000 a year earlier, representing an increase of 18.8%[18]. - The Company had total deposits of $7.34 billion as of March 31, 2025, with interest-bearing demand deposits making up 70% of the total[197]. - The Company’s total wholesale funding decreased by $196 million during the first three months of 2025, attributed to strong deposit growth[205]. Credit Quality and Loss Provisions - Provision for credit losses rose to $4,234 thousand for Q1 2025, compared to $2,969 thousand in Q1 2024, indicating a 42.6% increase[14]. - The allowance for credit losses on loans/leases increased to $90,354 thousand as of March 31, 2025, compared to $89,841 thousand at December 31, 2024[12]. - The percentage of nonaccrual loans/leases in the total loan/lease portfolio was 0.69% as of March 31, 2025, compared to 0.59% as of December 31, 2024, indicating a slight increase in nonperforming assets[46]. - Total nonperforming loans (NPLs) amounted to $47,615 thousand, representing a 7% increase from the previous period[47]. - The total provision for credit losses increased to $4.2 million in Q1 2025 from $3.0 million in Q1 2024, primarily due to loan growth and increased net charge-offs[137]. Investment and Securities - The fair value of available-for-sale (AFS) securities was $264.241 million as of March 31, 2025, with unrealized losses totaling $53.672 million[32]. - The fair value of trading securities was $82.4 million as of March 31, 2025, down from $83.5 million at the end of 2024, with a net loss of $809 thousand for the first quarter of 2025[38]. - The total fair value of asset-backed securities held by the company was $264.2 million as of March 31, 2025, compared to $317.8 million, indicating a decrease of approximately 16.9%[39]. Operational Efficiency - Total noninterest expense decreased to $46,539 thousand in Q1 2025, down 8.5% from $50,690 thousand in Q1 2024[14]. - The efficiency ratio was not specified, but management aims to limit annual operating expense growth to 5%[110]. - The Company believes it met all capital adequacy requirements as of March 31, 2025, and December 31, 2024, ensuring compliance with regulatory standards[89]. Loan Portfolio and Growth - As of March 31, 2025, the company's total loan/lease portfolio amounted to $6,823.2 million, an increase from $6,784.4 million as of December 31, 2024, reflecting a growth of approximately 0.57%[44]. - The construction and land development loans increased to $1,419.2 million as of March 31, 2025, from $1,313.5 million as of December 31, 2024, marking a growth of approximately 8.1%[44]. - Total performing loans across all categories reached $284,983 thousand in 2025, up from $270,210 thousand in 2024, marking a growth of 5.15%[59]. Risk Management - The Company actively monitors interest rate risk and adjusts the asset/liability position to enhance net interest margins[231][233]. - A short-term earnings at risk summary is used to quantify interest rate risk exposure, simulating various interest rate scenarios over a five-year horizon[234]. - The Company assesses credit risk by monitoring publicly available credit ratings and only enters into derivatives with highly rated counterparties[72]. Capital and Regulatory Compliance - As of March 31, 2025, the Company had total risk-based capital of $1,286,554 thousand, with a ratio of 14.18%, exceeding the well-capitalized requirement of 8.00%[90]. - The Common Equity Tier 1 ratio as of March 31, 2025, was 10.27%, exceeding the required 4.50%[90]. - The Company secured additional capital through various sources, including common and preferred stock, trust preferred securities, and subordinated notes[221].

Financial Data and Key Metrics Changes - For Q1 2025, the company reported net income and adjusted net income of $26 million, with reported earnings per diluted share at $1.52 and $1.53 on an adjusted basis [7][29] - The adjusted net interest margin (NIM) on a tax-equivalent basis increased by one basis point compared to the previous quarter [7][31] - Non-interest income for the first quarter was $17 million, including $7 million from capital markets revenue [10][34] - The effective tax rate for the quarter was 1%, down from 9% in the prior quarter [53] Business Line Data and Key Metrics Changes - The wealth management business generated $5 million in revenue for Q1, reflecting a 14% annualized increase from the prior quarter [35][36] - Non-interest expenses decreased by $7 million or 13% to $47 million, well below the guidance range of $52 to $55 million [13][37] - Total loans held for investment grew by $39 million or 2% annualized, with loan growth funded by a robust expansion in core deposits of $332 million [40][43] Market Data and Key Metrics Changes - Total core deposit growth was robust at 20% annualized, enhancing liquidity and reducing reliance on wholesale funding [10][43] - The company experienced strong deposit betas, actively managing deposit costs as the Federal Reserve reduced interest rates [32][33] Company Strategy and Development Direction - The company is focused on the growth potential of its wealth management business, expecting continued long-term growth fueled by strategic investments [12][36] - The long-term securitization strategy supports the ongoing success of the LIHTC business and drives substantial capital market revenue [42][110] - The company aims to maintain a CET1 ratio above 10% while optimizing the mix and quality of its capital as it grows [52][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term resilience of markets and the financial health of clients despite macroeconomic uncertainties [16][23] - The company suspended its full-year loan growth guidance due to heightened uncertainty, providing a revised guidance of 4% to 6% for Q2 2025 [9][61] - Management noted that the LIHTC lending business is beginning to normalize as clients adjust to the current environment [11][82] Other Important Information - The company’s allowance for credit losses as a percent of total loans held for investment stood at 1.32% at the end of Q1 [15][48] - The tangible common equity to tangible assets ratio increased by 15 basis points to 9.70% at quarter-end, driven by strong earnings [50] Q&A Session Summary Question: Loan growth outlook and guidance reconciliation - Management acknowledged modest loan growth in Q1 due to elevated payoffs but expressed confidence in achieving 4% to 6% growth in Q2 [61][62] Question: Provision for credit losses expectations - Management indicated that a lower provision is likely if loan growth remains muted, aligning with the lower guidance [63][64] Question: Fixed-rate loans repricing cadence - Management confirmed success in rolling up rates on new fundings, with a weighted average rate of 7.21% for the quarter [66][67] Question: Expectations for non-capital markets revenue - Management expects non-interest income to grow at 6% or better, with strong performance in wealth management [76][77] Question: LIHTC business and project timing - Management noted that uncertainty in Washington had previously slowed LIHTC projects, but activity is starting to pick up again [100][101] Question: Securitization plans and timing - Management indicated that the timing of the next securitization will depend on the pace of LIHTC growth, with a potential large securitization planned [110][112] Question: Credit quality and tariff exposure - Management conducted a credit analysis and identified minimal high-risk exposure related to tariffs, with most clients having shifted imports away from China [126][130]