The following is a summary of the QCR Holdings, Inc. (QCRH) Q1 2024 Earnings Call Transcript:
Financial Performance:
QCR Holdings reported an adjusted net income of $26.9 million or $1.59 per diluted share for Q1 2024, with ROAA of 1.25% and an ROAE of 11.83%.
Loan growth of 6.4% was achieved annually, largely due to the low-income housing tax credit lending program.
There were increases in core deposits by $316 million or 20.3% annually, helping to improve the loans held for investment to deposit ratio to 93.6%.Q1 net interest income totaled $54.7 million, decreasing by $1 million from Q4 2023, primarily due to non-client factors.
Non-interest income was down, at $26.9 million for Q1 from $47.7 million in Q4 2023, attributed to lost revenue from capital markets and wealth management.
There was a decrease in non-interest expenses for Q1, at $50.7 million compared to $60.9 million in Q4 2023, predominantly due to reduced variable employee compensation.
The company's tangible common equity to the tangible assets ratio increased by 19 basis points to 8.94%, up from 8.75% at the end of December.
Business Progress:
QCR Holdings showed an improvement in asset quality with the ratio of non-performing assets to total assets improving by four basis points during Q1.
The overall exposure to commercial office buildings was minimal and controlled, making up just 3% of total loans with an average loan size of $859,000.
QCR Holdings recently launched a wealth management business in Des Moines, Iowa, giving rise to expectations of further growth.
Vigilant credit administration and underwriting discipline along with efficient management of non-interest expenses continue to show progress.
Plans are in place for an LIHTC loan securitization in Q3 2024 as part of a long-term securitization strategy.
Operations in Cedar Rapids and Quad Cities demonstrate QCR's confidence in its operational infrastructure, client relationships, and growth strategies.
The company is planning to increase its Total Capital Equity (TCE) to the low nineties, potentially considering stock buybacks for the latter half of the year.
More details: QCR Holdings IR
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