QCR (US:QCRH)2025-05-09 15:31Financial 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].