QCR (US:QCRH)2025-11-07 21:11Financial Performance - Net income for the three months ended September 30, 2025, was $36,714 thousand, a 32% increase from $27,785 thousand in the same period of 2024[14]. - Basic earnings per common share increased to $2.17 for the three months ended September 30, 2025, compared to $1.65 for the same period in 2024, reflecting a growth of 31%[14]. - Net income for the nine months ended September 30, 2025, was $91,530,000, an increase from $83,625,000 in 2024, representing a growth of approximately 10.8%[19]. - The company reported record net income of $36.7 million and diluted EPS of $2.16 for Q3 2025, compared to $29.0 million and $1.71 in Q2 2025, and $27.8 million and $1.64 in Q3 2024[118]. Income and Revenue - Net interest income for the three months ended September 30, 2025, was $64,799 thousand, an increase of 8% compared to $59,722 thousand for the same period in 2024[14]. - Total interest and dividend income for the year 2025 reached $361,935,000, slightly up from $360,215,000 in 2024, indicating a marginal increase of 0.5%[16]. - Total noninterest income rose to $36,651 thousand for the three months ended September 30, 2025, up 35% from $27,157 thousand in the same period of 2024[14]. - Capital markets revenue for Q3 2025 was $23,832,000, significantly higher than $16,290,000 in Q3 2024, showing an increase of approximately 46.8%[104]. Assets and Liabilities - Total assets increased to $9,568,302 thousand as of September 30, 2025, up from $9,026,030 thousand at December 31, 2024, representing a growth of 6%[12]. - Total liabilities increased to $8,481,387 thousand as of September 30, 2025, up from $8,028,643 thousand at December 31, 2024, representing a rise of 6%[12]. - The company reported a total stockholders' equity of $1,086,915 thousand as of September 30, 2025, compared to $997,387 thousand at December 31, 2024, indicating an increase of 9%[12]. Credit Losses and Provisions - Provision for credit losses increased to $4,305 thousand for the three months ended September 30, 2025, compared to $3,484 thousand in the same period of 2024, reflecting a rise of 23%[14]. - The provision for credit losses for the nine months ended September 30, 2025, was $12,582,000, down from $11,949,000 in the same period of 2024[105]. - The allowance for credit losses (ACL) for loans/leases at the end of September 2025 was $88.77 million, reflecting a provision of $4.23 million for the quarter[215]. Deposits and Cash Flow - Total deposits increased to $7,380,068 thousand as of September 30, 2025, compared to $7,061,187 thousand at December 31, 2024, marking a growth of 5%[12]. - The company reported a net increase in deposit accounts of $318,881,000 in 2025, compared to an increase of $470,628,000 in 2024, a decline of approximately 32.2%[19]. - Net cash provided by operating activities decreased to $86,133,000 in 2025 from $267,208,000 in 2024, indicating a decline of about 67.7%[19]. Securities and Investments - The fair value of available-for-sale (AFS) securities was $271,349 thousand as of September 30, 2025, down from $281,109 thousand as of December 31, 2024[31]. - The total unrealized losses for AFS municipal securities were $42,367 thousand as of September 30, 2025[35]. - The investment portfolio included 680 securities, with 518 in an unrealized loss position, representing approximately 13.3% of the total amortized cost of the portfolio[35]. Risk Management and Derivatives - The Company has entered into interest rate swaps totaling a notional amount of $114.31 million to hedge against rising rates, with a fair value of $(360) thousand as of September 30, 2025[76]. - The Company has implemented interest rate collars with a total notional amount of $150 million, with a fair value loss of $240,000 as of September 30, 2025[77]. - The Company manages credit risk by entering into interest rate derivatives only with highly rated counterparties and employs collateral agreements to mitigate default risk[79]. Tax and Regulatory Compliance - The effective tax rate for the first nine months of 2025 was 6%, down from 7% in the same period of 2024, primarily due to new state tax credit investments[90]. - The Company met all capital adequacy requirements as of September 30, 2025, according to regulatory guidelines[107]. - The Tier 1 risk-based capital was $1,039,242 thousand with a ratio of 10.85%, above the required 6.00%[108]. Operational Highlights - The Company authorized a new share repurchase program for up to 1,700,000 shares, approximately 10% of outstanding shares as of September 30, 2025[112]. - The Company continues to focus on growing its core deposit portfolio and shifting the mix from higher-cost deposits to lower-cost core deposits[231]. - The Company aims to grow fee-based income by at least 6% annually, but reported a fee income growth of -16.9% year-to-date as of September 30, 2025[124][126].