QCR (US:QCRH)2024-11-08 18:01Financial Performance - Net income for the three months ended September 30, 2024, was $27,785 thousand, an increase from $25,121 thousand, representing a growth of 10.6%[11] - Basic earnings per common share increased to $1.65 for the three months ended September 30, 2024, compared to $1.50, reflecting a growth of 10.0%[11] - Net income for the quarter ended September 30, 2023, was $25,121,000, a decrease from $28,425,000 in the previous quarter[19] - For the nine months ended September 30, 2024, net income was $83.6 million with diluted EPS of $4.94, an increase from $80.7 million and $4.79 in the same period of 2023[139] - The Company reported net income of $27.8 million and diluted EPS of $1.64 for Q3 2024, compared to $29.1 million and $1.72 in Q2 2024, and $25.1 million and $1.49 in Q3 2023[138] Asset Growth - Total assets increased to $9,088,565 thousand as of September 30, 2024, compared to $8,538,894 thousand at December 31, 2023, representing a growth of 6.5%[9] - Total assets as of September 30, 2024, amounted to $9,088,565,000, up from $8,540,057,000 as of September 30, 2023, indicating a growth of 6.4%[126] - Total assets measured at fair value as of September 30, 2024, amounted to $612,463,000, compared to $509,365,000 as of December 31, 2023, indicating a growth of 20.3%[112] Loan and Lease Performance - Net loans/leases receivable rose to $6,742,481 thousand, up from $6,456,216 thousand, marking an increase of 4.4%[9] - The total loan/lease portfolio amounted to $6.83 billion, an increase from $6.54 billion as of December 31, 2023, reflecting a growth of approximately 4.2%[65] - The average balance of gross loans/leases receivable increased by $52.1 million in Q3 2024 compared to the prior period[174] - The Company reported a total of $6,828,802 thousand in collectively evaluated credit losses, with an allowance of $86,321 thousand[75] Deposit Growth - Total deposits increased to $6,984,633 thousand, compared to $6,514,005 thousand, reflecting a growth of 7.2%[9] - The company reported a net increase in deposit accounts of $470,628,000 for the current year[22] Interest Income and Expense - Net interest income for the three months ended September 30, 2024, was $59,722 thousand, up from $55,255 thousand, indicating an increase of 8.9%[11] - Interest income increased by $16.9 million in Q3 2024 compared to Q3 2023, and by $59.1 million for the first nine months of 2024 compared to the same period in 2023[177] - Interest expense increased to $12,387, up from the previous period, with interest-bearing deposits contributing significantly to this rise[170] Credit Quality and Provisions - The provision for credit losses decreased to $3,484 thousand from $3,806 thousand, a reduction of 8.4%[11] - The total provision for credit losses was $3.5 million for Q3 2024, an increase from $3.3 million in Q3 2023, primarily driven by loan growth[180] - The allowance for credit losses (ACL) for loans/leases held for investment was 1.30% of total gross loans/leases at September 30, 2024, down from 1.39% at September 30, 2023[183] Noninterest Income and Expense - Noninterest income totaled $27,157 thousand for the three months ended September 30, 2024, compared to $26,593 thousand, a rise of 2.1%[11] - Noninterest income decreased by $3.7 million, or 12%, compared to Q2 2024, primarily due to lower BOLI income and capital markets revenue[145] - Total noninterest income for the third quarter of 2024 was $27.2 million, a 2.1% increase from $26.6 million in the same period in 2023[185] Capital Adequacy - The Company and its subsidiary banks met all capital adequacy requirements as of September 30, 2024, ensuring they are categorized as "well capitalized" under regulatory standards[128] - The total risk-based capital is $1,243,438, representing a ratio of 13.87%[129] Efficiency and Cost Management - The efficiency ratio (non-GAAP) for the quarter ended September 30, 2024, was 61.65%, an increase from 57.31% in the same quarter of the prior year, indicating a decline in efficiency[164] - The company emphasizes overall cost containment and is committed to improving general efficiency[205] Securitization and Investments - The Company completed a LIHTC loan securitization with a total outstanding principal balance of $232.4 million, recording a net loss of $473 thousand[149] - The company plans to continue utilizing securitizations as a liquidity management tool and to enhance capacity for LIHTC loans[149] Derivative Instruments - The Company has entered into interest rate swaps totaling a notional amount of $114,310,000 to hedge against rising rates, with fair values of $(624,000) as of December 31, 2023[97] - The Company’s derivative financial instruments are recorded in accordance with ASC 815, impacting both AOCI and current earnings based on their designation[101]