QCR (US:QCRH)2025-04-22 20:05Financial 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].