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]

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 [5][19] - The adjusted net interest margin (NIM) on a tax-equivalent basis increased by one basis point compared to the previous quarter, while the core operating margin performance overcame four basis points of dilution from expired interest rate caps [5][21] - Non-interest income for the first quarter was $17 million, including $7 million generated from capital markets revenue [7][22] - The effective tax rate for the quarter was 1%, down from 9% in the prior quarter, primarily due to tax benefits from equity compensation and new state tax credit investments [33][34] Business Line Data and Key Metrics Changes - The wealth management business generated $5 million in revenue for Q1 2025, reflecting a 14% annualized increase from the prior quarter [8][23] - Total loans held for investment grew by $39 million or 2% annualized, with annualized loan growth at 4% when adjusting for the runoff of M2 equipment finance loans [26][27] - Non-interest expenses decreased by $7 million or 13% to $47 million, well below the guidance range of $52 million to $55 million [9][24] Market Data and Key Metrics Changes - Total core deposit growth was robust at 20% annualized, reflecting success in expanding market share with both new and existing clients [7][28] - The company experienced strong deposit betas, actively managing deposit costs as the Federal Reserve began reducing interest rates [21][96] Company Strategy and Development Direction - The company intends to continue utilizing securitizations to provide flexibility, enhance liquidity, and manage growth as it approaches $10 billion in assets [6][13] - The focus remains on the growth potential of the wealth management business, driven by strategic investments in Southwest Missouri and Central Iowa markets [8][24] - The company is committed to maintaining strong liquidity and building capital, with a focus on increasing regulatory capital ratios [14][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term resiliency of markets and the financial health of clients, despite macroeconomic uncertainties [11][16] - The company is closely monitoring key industries within its loan portfolio and adapting to changing economic conditions [10][31] - Management indicated that loan growth guidance for Q2 2025 is projected at an annualized rate of 4% to 6%, reflecting current economic uncertainties [6][38] Other Important Information - The company reported a decrease in total criticized loan balances by 28 basis points from the prior quarter, marking the lowest criticized ratio in five years [9][29] - The tangible common equity to tangible assets ratio increased by 15 basis points to 9.7% at quarter end, driven by strong earnings [32] Q&A Session Summary Question: Loan growth outlook and uncertainties - Management acknowledged that first quarter loan growth was modest due to elevated payoffs from clients selling properties or businesses, and revised guidance reflects economic uncertainties [38] Question: Provision for credit losses - Management indicated that a lower provision for credit losses is likely if loan growth remains muted [41] Question: Margin and fixed-rate loans repricing - Management confirmed continued success in rolling up rates on new fundings, with a weighted average rate of 7.21% for the quarter [42] Question: Non-interest income expectations - Management expects non-interest income to grow at 6% or better, with strong performance in wealth management contributing significantly [50] Question: Capital markets revenue outlook - Management expressed confidence in improved capital markets performance in the coming quarters, driven by a return to normalcy in project activity [54] Question: Securitization plans - Management indicated that timing for the next securitization will depend on the pace of growth in the LITECH business, with plans for a larger securitization in the $350 million range [78][102] Question: Credit quality and tariff exposure - Management conducted a credit analysis of commercial borrowers and identified minimal high-risk exposure related to tariffs, with most clients having shifted imports away from China [90][92]

Core Insights - QCR Holdings reported a revenue of $76.88 million for the quarter ended March 2025, reflecting a decrease of 5.7% year-over-year and falling short of the Zacks Consensus Estimate of $86.85 million by 11.48% [1] - The company's EPS for the quarter was $1.53, slightly down from $1.59 in the same quarter last year, but above the consensus estimate of $1.52, resulting in a surprise of +0.66% [1] Financial Performance Metrics - The Efficiency Ratio (Non-GAAP) was reported at 60.5%, higher than the three-analyst average estimate of 57.5% [4] - The Net Interest Margin (GAAP) stood at 3%, below the average estimate of 3.2% based on three analysts [4] - Total earning assets averaged $8.24 billion, slightly below the two-analyst average estimate of $8.31 billion [4] - Net charge-offs as a percentage of average loans/leases were 0.1%, better than the average estimate of 0.2% [4] - Total noninterest income was $16.89 million, significantly lower than the $26 million average estimate [4] - Net Interest Income was reported at $59.99 million, compared to the average estimate of $60.84 million [4] - Capital markets revenue was $6.52 million, falling short of the $14.13 million estimated by two analysts [4] - Deposit service fees were $2.18 million, slightly below the average estimate of $2.22 million [4] - Gains on sales of residential real estate loans were $0.30 million, compared to the $0.65 million estimated [4] - Net interest income - tax equivalent (non-GAAP) was $69.50 million, below the two-analyst average estimate of $70.91 million [4] Stock Performance - Over the past month, shares of QCR Holdings have returned -10.8%, compared to a -8.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - QCR Holdings (QCRH) reported quarterly earnings of $1.53 per share, exceeding the Zacks Consensus Estimate of $1.52 per share, but down from $1.59 per share a year ago, indicating an earnings surprise of 0.66% [1] - The company posted revenues of $76.88 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 11.48% and down from $81.56 million year-over-year [2] - QCR Holdings has surpassed consensus EPS estimates four times over the last four quarters and topped consensus revenue estimates three times during the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.65 on revenues of $89.85 million, while for the current fiscal year, the estimate is $6.83 on revenues of $365.75 million [7] - The estimate revisions trend for QCR Holdings is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Banks - Midwest industry, to which QCR Holdings belongs, is currently ranked in the top 13% of over 250 Zacks industries, indicating a strong industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact QCR Holdings' stock performance [5]

Financial Performance - The company reported a quarterly net income of $25.8 million and diluted earnings per share (EPS) of $1.52 for Q1 2025, down from $30.2 million and $1.77 in Q4 2024 [2][10] - Adjusted net income (non-GAAP) for Q1 2025 was $26.0 million with adjusted diluted EPS of $1.53, compared to $32.8 million and $1.93 in Q4 2024 [3][10] - Noninterest income for Q1 2025 was $16.9 million, significantly lower than $30.6 million in Q4 2024, primarily due to macroeconomic factors affecting capital markets revenue [11][12] Margin and Deposit Growth - Net interest income for Q1 2025 totaled $60.0 million, a slight decrease from the previous quarter, with a net interest margin (NIM) of 2.95% [7][8] - The adjusted NIM on a tax-equivalent yield (TEY) basis was 3.41%, reflecting a one basis point increase from Q4 2024 [9][10] - Core deposits increased by $332.2 million, or 20% annualized, allowing the company to reduce brokered deposits and overnight FHLB advances [19][20] Loan Growth and Asset Quality - Total loans and leases held for investment grew by $38.9 million to $6.8 billion, with an annualized growth rate of 4% [22][23] - The nonperforming assets (NPAs) to total assets ratio was 0.53%, with NPAs totaling $48.1 million, a slight increase from the previous quarter [25][26] - The company recorded a provision for credit losses of $4.2 million, a decrease from the prior quarter, with net charge-offs also increasing to $4.2 million [27] Capital and Book Value - Tangible book value per share (non-GAAP) increased by $1.43, or 11% annualized, during Q1 2025 [29] - The tangible common equity to tangible assets (TCE) ratio improved to 9.70%, with total risk-based capital ratio increasing to 14.16% [30] Expense Management - Noninterest expense for Q1 2025 was $46.5 million, down from $53.5 million in Q4 2024, primarily due to lower salary and employee benefits expenses [15][16] - The company's efficiency ratio was 60.54%, with expectations for noninterest expense in Q2 2025 to be in the range of $50 to $53 million [16]

Financial Performance - QCR Holdings, Inc. reported a net income of $25.8 million and diluted EPS of $1.52 for Q1 2025, down from $30.2 million and $1.77 in Q4 2024[3]. - Adjusted net income for Q1 2025 was $26.0 million with adjusted diluted EPS of $1.53, compared to $32.8 million and $1.93 in Q4 2024[4]. - Noninterest income for Q1 2025 was $16.9 million, significantly down from $30.6 million in Q4 2024, primarily due to macroeconomic factors[12]. - Noninterest expense decreased to $46.5 million, down 13% from $53.5 million in Q4 2024, highlighting expense management[16]. - Net income for the quarter was $25,797,000, compared to $30,225,000 in the previous quarter, reflecting a decrease of approximately 14.3%[44]. - Basic EPS for the quarter was $1.53, down from $1.80 in the previous quarter, indicating a decline of about 15%[44]. - GAAP net income for the quarter ended March 31, 2025, was $25,797,000, a decrease from $30,225,000 in the previous quarter[67]. - Adjusted net income (non-GAAP) for the same period was $25,953,000, compared to $32,819,000 in the prior quarter, reflecting a decline of approximately 20.9%[67]. - Total income for the quarter was $76,878,000, down from $91,829,000 in the prior quarter, reflecting a decrease of approximately 16.3%[67]. 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%[39]. - Total deposits rose to $7,337,390 thousand, an increase of 3.9% from $7,061,187 thousand at December 31, 2024[40]. - Total assets for Quad City Bank and Trust increased to $2,777,634, up from $2,618,727 in the previous quarter, representing a growth of 6.06%[58]. - Total deposits at Quad City Bank and Trust rose to $2,397,047, an increase of 10.93% from $2,161,515 in the prior quarter[58]. Loan and Lease Performance - Total loans and leases held for investment grew by $38.9 million to $6.8 billion, reflecting a 4% annualized growth rate[23]. - Net loans/leases reached $6,732,813 thousand, up from $6,694,563 thousand at December 31, 2024, indicating a growth of 0.6%[39]. - The commercial and industrial loan category totaled $1,832,598 thousand, down from $1,902,923 thousand at December 31, 2024, reflecting a decline of 3.7%[39]. - Total loans and leases for Quad City Bank and Trust decreased slightly to $2,041,181, down from $2,046,038, reflecting a decline of 0.24%[58]. - The LIHTC loan balances within the loan/lease portfolio were $2.2 billion as of March 31, 2025[42]. Credit Quality and Allowance for Losses - The allowance for credit losses stood at $90,354 thousand, slightly increased from $89,841 thousand at December 31, 2024[39]. - Nonperforming assets increased to $48,139 thousand, up from $45,554 thousand in the previous quarter, reflecting a rise in nonaccrual loans[55]. - The ratio of nonperforming assets to total assets was 0.53%, slightly higher than 0.50% in the previous quarter[55]. - Total criticized loans amounted to $140,360 thousand, down from $158,566 thousand in the previous quarter[55]. - The allowance for credit losses on loans/leases ended at $90,354 thousand, compared to $89,841 thousand at the end of the previous quarter[55]. Capital and Efficiency Ratios - The effective tax rate for Q1 2025 was exceptionally low at 1%, down from 9% in the prior quarter[19]. - The total risk-based capital ratio improved to 14.16% from 14.10% in the previous quarter, indicating a strengthening of capital position[47]. - The efficiency ratio (Non-GAAP) for the quarter was 60.54%, up from 58.26% in the previous quarter, indicating a decrease in operational efficiency[47]. - The adjusted return on average assets (annualized) was 1.15%, down from 1.45% in the previous quarter[67]. - The adjusted return on average equity (annualized) decreased to 10.20% from 13.19% in the prior quarter[67]. Market and Economic Conditions - The company is facing various risks including increased competition in the financial services sector and potential economic impacts from geopolitical events[35]. - The company anticipates second quarter adjusted NIM TEY to range from static to an increase of four basis points, assuming no Federal Reserve rate cuts[11].

Core Viewpoint - The article emphasizes the importance of value investing and highlights QCR Holdings (QCRH) as a strong value stock based on its favorable valuation metrics and earnings outlook [2][7]. Valuation Metrics - QCRH has a Zacks Rank of 2 (Buy) and an A for Value, indicating strong potential for value investors [4]. - The Forward P/E ratio for QCRH is 9.52, which is lower than the industry average of 9.66. Over the past year, QCRH's Forward P/E has fluctuated between 9.06 and 13.51, with a median of 11.18 [4]. - The P/B ratio for QCRH is 1.13, significantly lower than the industry average of 1.84. Its P/B has ranged from 1.01 to 1.62 over the past year, with a median of 1.29 [5]. - QCRH's P/CF ratio stands at 8.63, which is attractive compared to the industry's average of 13.66. The P/CF for QCRH has varied between 7.02 and 11.70 in the past year, with a median of 9.43 [6]. Investment Outlook - The combination of QCRH's favorable valuation metrics and strong earnings outlook suggests that the stock is likely undervalued at present, making it an appealing option for value investors [7].

Core Viewpoint - QCR Holdings (QCRH) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended March 2025, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The consensus estimate for QCR Holdings is an earnings per share (EPS) of $1.52, reflecting a year-over-year decrease of 4.4%, while revenues are projected to be $86.85 million, representing a 6.5% increase from the previous year [3]. - The EPS estimate has been revised 0.2% higher in the last 30 days, indicating a slight positive adjustment from analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for QCR Holdings is lower than the consensus estimate, resulting in an Earnings ESP of -1.97%, suggesting a bearish outlook from analysts [10][11]. - Despite the negative Earnings ESP, the stock holds a Zacks Rank of 2 (Buy), complicating the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, QCR Holdings exceeded the consensus EPS estimate of $1.73 by delivering earnings of $1.93, achieving a surprise of +11.56% [12]. - The company has successfully beaten consensus EPS estimates in the last four quarters [13]. Conclusion - While QCR Holdings does not appear to be a strong candidate for an earnings beat, investors should consider other influencing factors when making investment decisions ahead of the earnings release [16].

Group 1: Stock Performance and Technical Analysis - QCR Holdings (QCRH) shares have declined by 10.3% over the past two weeks, but a hammer chart pattern formed in the last trading session suggests potential support and a possible trend reversal [1] - The hammer pattern indicates a potential exhaustion of selling pressure, which, combined with rising optimism among Wall Street analysts regarding future earnings, enhances the prospects for a trend reversal [2][7] - The hammer chart pattern is characterized by a small candle body and a long lower wick, indicating that despite a downtrend, buying interest emerges, pushing the stock price up towards the opening price [4][5] Group 2: Earnings Estimates and Analyst Sentiment - There has been an upward trend in earnings estimate revisions for QCRH, which is considered a bullish indicator and is strongly correlated with near-term stock price movements [7] - The consensus EPS estimate for the current year has increased by 0.2% over the last 30 days, indicating that analysts are optimistic about the company's potential to report better earnings than previously predicted [8] - QCRH currently holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, suggesting that it is likely to outperform the market [9]