QCR Holdings, Inc. Announces Net Income of $25.8 Million for the First Quarter of 2025

Financial Performance - The company reported a quarterly net income of $25.8 million and diluted earnings per share (EPS) of $1.52 for Q1 2025, down from $30.2 million and $1.77 in Q4 2024 [2][10] - Adjusted net income (non-GAAP) 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 [3][10] - Noninterest income for Q1 2025 was $16.9 million, significantly lower than $30.6 million in Q4 2024, primarily due to macroeconomic factors affecting capital markets revenue [11][12] Margin and Deposit Growth - Net interest income for Q1 2025 totaled $60.0 million, a slight decrease from the previous quarter, with a net interest margin (NIM) of 2.95% [7][8] - The adjusted NIM on a tax-equivalent yield (TEY) basis was 3.41%, reflecting a one basis point increase from Q4 2024 [9][10] - Core deposits increased by $332.2 million, or 20% annualized, allowing the company to reduce brokered deposits and overnight FHLB advances [19][20] Loan Growth and Asset Quality - Total loans and leases held for investment grew by $38.9 million to $6.8 billion, with an annualized growth rate of 4% [22][23] - The nonperforming assets (NPAs) to total assets ratio was 0.53%, with NPAs totaling $48.1 million, a slight increase from the previous quarter [25][26] - The company recorded a provision for credit losses of $4.2 million, a decrease from the prior quarter, with net charge-offs also increasing to $4.2 million [27] Capital and Book Value - Tangible book value per share (non-GAAP) increased by $1.43, or 11% annualized, during Q1 2025 [29] - The tangible common equity to tangible assets (TCE) ratio improved to 9.70%, with total risk-based capital ratio increasing to 14.16% [30] Expense Management - Noninterest expense for Q1 2025 was $46.5 million, down from $53.5 million in Q4 2024, primarily due to lower salary and employee benefits expenses [15][16] - The company's efficiency ratio was 60.54%, with expectations for noninterest expense in Q2 2025 to be in the range of $50 to $53 million [16]