Core Viewpoint - QCR Holdings, Inc. will release its first quarter financial results for 2025 on April 22, 2025, and will host a conference call on April 23, 2025, to discuss these results [1]. Financial Results Announcement - The financial results for the first quarter ended March 31, 2025, will be released after market close on April 22, 2025 [1]. - A conference call and webcast will take place on April 23, 2025, at 10:00 a.m. Central Time to discuss the results [1]. Teleconference Details - Dial-in information for the call is 888-346-9286 (international 412-317-5253) [2]. - The event will be archived and available for replay through April 30, 2025, with access information provided [2]. Webcast Information - A webcast of the teleconference can be accessed on the Company's News and Events page at www.qcrh.com, with an archived version available shortly after the live event [3]. Company Overview - QCR Holdings, Inc. is a multi-bank holding company headquartered in Moline, Illinois, serving various communities through its subsidiary banks [4]. - The Company provides full-service commercial and consumer banking, as well as trust and wealth management services [4]. - As of December 31, 2024, QCR Holdings had $9.0 billion in assets, $6.8 billion in loans, and $7.1 billion in deposits [4].

Financial Performance - The Company reported net income of $113.9 million for the year ended December 31, 2024, compared to $113.6 million in 2023, with diluted EPS of $6.71 and $6.73 respectively [239]. - Adjusted net income (non-GAAP) for 2024 was $119.3 million, with adjusted diluted EPS of $7.03 [241]. - Adjusted net income for 2024 was $119.3 million, compared to $115.1 million in 2023, with adjusted EPS increasing to $7.09 from $6.88 [259]. - The provision for income taxes was $8.7 million for 2024, with an effective tax rate of 7.1%, down from $13.1 million and 10.3% in 2023 [309]. - The company reported net income of $113,850,000 for 2024, slightly up from $113,558,000 in 2023 [375]. Income and Expenses - Net interest income increased by $10.8 million, or 4.9%, in 2024, primarily due to higher loan and investment average balances [243]. - Noninterest income decreased by $17.2 million, or 12.9%, primarily due to lower capital markets revenue from swap fees [246]. - Noninterest expense decreased to $207.6 million in 2024 from $210.5 million in 2023, primarily due to lower salaries and benefits expenses [250]. - Total noninterest income decreased by 12.9% to $115.5 million in 2024 from $132.7 million in 2023 [277]. - Salaries and employee benefits decreased by 6.2% to $128.2 million in 2024 compared to $136.6 million in 2023 [295]. - Total noninterest expense decreased by 1.4% to $207.6 million in 2024 from $210.5 million in 2023 [295]. Loan and Deposit Growth - Loan growth was robust at 10% prior to loan securitizations, while deposit growth was strong at 8% [243]. - The Company grew loans and leases by 3.7% in 2024, or 9.6% excluding $386.5 million in loan securitizations [248]. - Total loans/leases grew by 3.7% in 2024, or 10.9% when excluding $386.5 million in loan securitizations [321]. - Deposits grew by $547.2 million, or 8.4%, during 2024, primarily due to an increase in interest-bearing deposits and time deposits [353]. Asset Management - Assets under management increased by $1.1 billion in 2024, with 469 new relationships adding $1.5 billion in new assets [248]. - The Company's total provision for credit losses was $17.1 million for 2024, an increase of $559 thousand from 2023, influenced by loan growth and increased net charge-offs [272]. - The total assets of the Company reached $8,837.4 million as of December 31, 2024 [269]. - The Company's securities portfolio increased by $194.9 million, or 19%, during 2024, while the net loan/lease portfolio increased by $238.3 million, or 3.7% [311]. Credit Quality - The Company’s allowance for credit losses (ACL) was deemed adequate as of December 31, 2024, but potential economic declines could increase losses [232]. - The allowance for credit losses (ACL) for loans/leases increased to $89.8 million as of December 31, 2024, from $87.2 million in 2023, reflecting a provision of $18.7 million in 2024 compared to $11.6 million in 2023 [331]. - Nonperforming assets (NPAs) rose to $45.6 million as of December 31, 2024, an increase of $11.4 million from $34.2 million in 2023, with the ratio of NPAs to total assets at 0.50% [348]. - Criticized loans decreased by 17% to $158.6 million in 2024, while classified loans increased by 26% to $84.9 million [338]. Interest Rate Risk - The Company’s net interest income is susceptible to interest rate risk, with significant increases in market rates potentially adversely affecting net interest income [404]. - As of December 31, 2024, the exposure of net interest income to a 300 basis point downward parallel shock is 4.8%, compared to 2.1% in 2023 [413]. - The established policy limit for a 200 basis point upward parallel shift in net interest income is a decline of 10%, with the actual exposure at (3.2)% for 2024 and (2.3)% for 2023 [413]. - The Company engages a national consulting firm to monitor and control its interest rate risk exposure, which is considered one of the most significant market risks [415]. Operational Efficiency - The efficiency ratio was 59.78% in 2024, slightly up from 59.52% in 2023 [259]. - The TCE/TA ratio improved to 9.55% in 2024 from 8.75% in 2023 [256]. - The average yield on interest-earning assets increased to 5.98% in 2024 from 5.56% in 2023 [261]. - The average balance of gross loans/leases receivable was $6,764.8 million in 2024, with an interest yield of 6.65% [269]. Internal Controls and Audit - The Company received an unqualified opinion on the effectiveness of its internal control over financial reporting as of December 31, 2024 [419]. - The audits were conducted in accordance with PCAOB standards to ensure financial statements are free of material misstatement [421]. - A critical audit matter was communicated that relates to accounts or disclosures material to the financial statements, involving complex judgments [422].

Core Points - QCR Holdings, Inc. announced the retirement of CEO Larry J. Helling effective May 22, 2025, following the annual stockholders meeting [1][2] - Todd A. Gipple, currently the President and CFO, will succeed Mr. Helling as President and CEO [1][2] - Nick W. Anderson will take over as Chief Financial Officer upon Mr. Gipple's promotion [1][2] Leadership Transition - Larry J. Helling has served as CEO for six years and has been with the organization since its formation in 2001 [2] - Mr. Helling emphasized the importance of local control and relationship-driven banking during his tenure [2] - Todd A. Gipple has been with the company since 2000 and has held various leadership roles, including Chief Operating Officer and President [2] - Nick W. Anderson has been with the company since late 2019 as Chief Accounting Officer and has a background in community service [2] Company Overview - QCR Holdings is a multi-bank holding company headquartered in Moline, Illinois, serving various communities through its subsidiary banks [4] - The company provides full-service commercial and consumer banking, as well as trust and wealth management services [4] - As of December 31, 2024, QCR Holdings reported $9.0 billion in assets, $6.7 billion in loans, and $7.1 billion in deposits [4]

Financial Data and Key Metrics Changes - The company reported its fourth quarter earnings, with a focus on financial results that will be summarized by management [1] - Management will discuss non-GAAP measures intended to supplement GAAP measures, with detailed financial information available in the press release [3] Business Line Data and Key Metrics Changes - Specific details regarding changes in various business lines were not provided in the available content Market Data and Key Metrics Changes - Information on market data and key metrics changes was not included in the available content Company Strategy and Development Direction and Industry Competition - The company will provide insights into its strategic direction and competitive landscape during the call [1] Management Comments on Operating Environment and Future Outlook - Management will share their views on the operating environment and future prospects, emphasizing forward-looking statements [2] Other Important Information - The conference call is being recorded and will be available for replay until January 30, 2025 [4] Q&A Session All Questions and Answers - No specific questions and answers from the Q&A session were provided in the available content

Core Insights - QCR Holdings reported revenue of $91.83 million for the quarter ended December 2024, reflecting a year-over-year decline of 11.3% and an EPS of $1.93 compared to $1.97 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $89.7 million, resulting in a surprise of +2.37%, while the EPS surprise was +11.56% against a consensus estimate of $1.73 [1] Financial Performance Metrics - Efficiency Ratio (Non-GAAP) was 58.3%, higher than the average estimate of 51.8% based on three analysts [4] - Net interest margin (GAAP) stood at 3%, below the average estimate of 3.4% from three analysts [4] - Average Balance of Total earning assets was $8.24 billion, slightly below the estimated $8.27 billion by two analysts [4] - Net charge-offs as a percentage of average loans/leases were 0.1%, significantly better than the estimated 0.4% by two analysts [4] - Total noninterest income reached $30.63 million, exceeding the average estimate of $28.73 million from three analysts [4] - Net Interest Income was $61.20 million, slightly above the average estimate of $61.14 million from two analysts [4] - Capital markets revenue was reported at $20.55 million, surpassing the average estimate of $15.50 million from two analysts [4] - Deposit service fees were $2.23 million, slightly below the average estimate of $2.26 million from two analysts [4] - Gains on sales of residential real estate loans were $0.73 million, exceeding the average estimate of $0.45 million from two analysts [4] - Net interest income - tax equivalent (non-GAAP) was $70.90 million, slightly below the average estimate of $71.34 million from two analysts [4] Stock Performance - Shares of QCR Holdings have returned -0.4% over the past month, contrasting with the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Group 1 - QCR Holdings reported quarterly earnings of $1.93 per share, exceeding the Zacks Consensus Estimate of $1.73 per share, but down from $1.97 per share a year ago, representing an earnings surprise of 11.56% [1] - The company posted revenues of $91.83 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.37%, but down from $103.47 million year-over-year [2] - Over the last four quarters, QCR Holdings has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2 - The stock has added about 1.1% since the beginning of the year, underperforming the S&P 500's gain of 2.9% [3] - The current consensus EPS estimate for the coming quarter is $1.60 on revenues of $86.95 million, and for the current fiscal year, it is $6.93 on revenues of $363.8 million [7] - The Zacks Industry Rank for Banks - Midwest is currently in the top 16% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Fourth Quarter Highlights Net income of $30.2 million, or $1.77 per diluted shareAdjusted net income of $32.8 million, or $1.93 per diluted share (non-GAAP) Record quarterly net interest income of $61.2 million Expanded NIM by 5 basis points and adjusted NIM (TEY) (non-GAAP) by 6 basis points to 3.40%Significant capital markets revenue of $20.6 million, including a $1.4 million gain on fourth securitizationTangible book value per share (non-GAAP) grew $1.21, or 10% annualizedTCE/TA ratio (non-GAAP) improved ...

Financial Performance - Fourth quarter net income was $30.2 million, or $1.77 per diluted share, compared to $27.8 million and $1.64 in the previous quarter [2]. - Full year record net income reached $113.9 million, or $6.71 per diluted share, with adjusted net income of $119.3 million, or $7.03 per diluted share (non-GAAP) [5]. - Net income for Q4 2024 was $30,225,000, an increase from $27,785,000 in Q3 2024, reflecting a growth of 5.2% [43]. - Net income for the year ended December 31, 2024, was $113,850,000, slightly up from $113,558,000 in 2023 [45]. - Basic EPS for the year ended December 31, 2024, was $6.77, compared to $6.79 in 2023, reflecting a minor decrease of 0.3% [45]. - Adjusted net income (non-GAAP) for Q4 2024 was $32,819 thousand, up 1.5% from $32,855 thousand in Q4 2023 [70]. - Adjusted earnings per common share (non-GAAP) for Q4 2024 was $1.95, an increase from $1.99 in Q4 2023, reflecting a decrease of 2.0% [70]. Income and Revenue - Record quarterly net interest income of $61.2 million, an increase of $1.5 million from the previous quarter, with a net interest margin (NIM) of 2.95% [5][8]. - Interest income for Q4 2024 was $121,642,000, a slight decrease from $125,420,000 in Q3 2024 [43]. - Total noninterest income for Q4 2024 was $30,625,000, up from $27,157,000 in Q3 2024, representing an increase of 9.1% [43]. - Total noninterest income for the year ended December 31, 2024, was $115,529,000, down from $132,684,000 in 2023, a decrease of 12.9% [45]. - Noninterest income for the fourth quarter totaled $30.6 million, with significant capital markets revenue of $20.6 million, up from $16.3 million in the prior quarter [12]. Assets and Liabilities - Total assets increased to $9,026,030 thousand as of December 31, 2024, compared to $8,538,894 thousand a year earlier, reflecting a growth of 5.7% [38]. - Total deposits rose to $7,061,187 thousand, up 8.4% from $6,514,005 thousand in the previous year [39]. - Net loans/leases reached $6,694,563 thousand, showing an increase from $6,456,216 thousand year-over-year, which is a growth of 3.7% [38]. - Total borrowings decreased to $569,532 thousand from $718,295 thousand, reflecting a reduction of 20.7% [39]. - The allowance for credit losses stood at $89,841 thousand, slightly up from $87,200 thousand a year ago, indicating a proactive approach to risk management [38]. Efficiency and Ratios - The efficiency ratio improved to 58.26% in the fourth quarter, with expectations for noninterest expenses in the range of $52 to $55 million for Q1 2025 [16]. - The tangible book value per share increased by $1.21, or 10% annualized, during the fourth quarter, and by $6.40, or 15%, for the full year [30]. - The efficiency ratio (Non-GAAP) improved to 58.26%, down from 61.65% in the previous quarter, indicating better cost management [48]. - The total risk-based capital ratio improved to 14.10%, up from 14.29% a year ago, indicating a slight decrease in capital adequacy [47]. - Return on average assets (annualized) was 1.34%, an increase from 1.29% in the previous quarter [48]. Credit Quality - Nonperforming assets (NPAs) totaled $45.6 million, with a ratio of NPAs to total assets at 0.50% [21][22]. - Total nonperforming assets increased to $45,554,000 as of December 31, 2024, up from $35,689,000 in the previous quarter, representing a 27.5% increase [58]. - The allowance for credit losses on loans/leases ended at $89,841,000, an increase from $86,321,000 in the prior quarter, reflecting a credit loss expense of $6,832,000 for the quarter [58]. - Nonperforming loans/leases totaled $44,350,000, up from $34,778,000 in the previous quarter, indicating a significant rise of 27.5% [58]. Market and Shareholder Information - Common shares outstanding increased to 16,882,045 as of December 31, 2024, compared to 16,749,254 a year earlier, reflecting a growth of approximately 0.79% [47]. - Book value per common share rose to $59.08, up from $52.93 a year ago, representing an increase of 11.7% [47]. - Market capitalization reached $1,361,368,000, a significant increase from $977,989,000 in the previous year, marking a growth of approximately 39.1% [47].

Core Viewpoint - QCR Holdings (QCRH) is expected to report a decline in quarterly earnings and revenues compared to the previous year, indicating potential challenges in financial performance [1]. Earnings Estimates - Wall Street analysts predict QCRH will post quarterly earnings of $1.73 per share, a decrease of 12.2% year-over-year [1]. - The consensus EPS estimate has been adjusted downward by 0.6% over the past 30 days, reflecting a reassessment of projections by analysts [2]. Revenue Projections - Revenues for QCRH are forecasted to be $89.7 million, representing a year-over-year decrease of 13.3% [1]. - Analysts expect 'Total noninterest income' to reach $28.73 million, down from $47.73 million reported in the same quarter last year [5]. Key Financial Metrics - The estimated 'Efficiency Ratio (Non-GAAP)' is projected at 51.8%, improving from 58.9% a year ago [4]. - 'Average Balance - Total earning assets' is expected to be $8.27 billion, up from $7.63 billion in the same quarter last year [5]. - 'Net Interest Income' is forecasted at $61.14 million, compared to $55.74 million a year ago [6]. - 'Net interest income - tax equivalent (non-GAAP)' is estimated to reach $71.34 million, up from $63.69 million in the previous year [6]. Stock Performance - QCR Holdings shares have shown a return of -1.1% over the past month, compared to a -0.4% change in the Zacks S&P 500 composite [7]. - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [7].

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