QCR (QCRH) Q4 2024 earnings summary

Executive summary

• Achieved record full-year net income of $114 million ($6.71 per diluted share) and adjusted net income of $119 million ($7.03 per diluted share) in 2024, with the strongest results in Q4.

• Midwest-based bank holding company with $9.0B in assets and $6.3B in wealth management AUM as of 12/31/24, operating 36 locations across four states.

• Four distinct bank charters with leading market share in key mid-sized metros, emphasizing relationship-driven, customized solutions.

• Diversified business lines include traditional banking, wealth management, correspondent banking, and a specialty finance group.

• Significant growth in net interest income, robust loan growth, and strong capital markets and wealth management revenue drove performance.

Financial highlights

• Adjusted EPS grew at a 13.9% CAGR from $3.66 (2019) to $7.03 (2024); tangible book value per share rose at a 12.3% CAGR to $50.21.

• Loans increased from $3.7B to $6.8B (12.9% CAGR); core deposits grew from $3.3B to $6.7B (15.4% CAGR) over the same period.

• Net interest income grew by $11 million (5%) year-over-year, fueled by loan and investment growth and higher yields.

• Total non-interest income reached $116 million, led by $71 million from capital markets revenue and $1 billion (20%) growth in wealth management AUM.

• Adjusted efficiency ratio improved to 58.4% for the year.

Outlook and guidance

• Anticipates gross loan growth of 8%-10% in 2025, with net loan growth targeted at 1%-3% after planned securitizations and M2 Equipment Finance runoff.

• Expects capital markets swap fee revenue of $50-$60 million in 2025, with Q1 typically lighter and stronger performance in later quarters.

• Projects Q1 2025 adjusted NIM TEY to be static to up five basis points, despite a four basis point headwind from expiring interest rate caps.

• Non-interest expenses expected to be $52-$55 million in Q1 2025, remaining fairly static throughout the year.

• Securitization of LIHTC loans expected to provide capacity for future asset and capital markets revenue growth, enhance liquidity, and maintain portfolio concentration levels.