QCR (QCRH) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 was $25.8 million ($1.52 per diluted share), with adjusted net income of $26.0 million ($1.53 per share); tangible book value per share grew by $1.43, or 11% annualized.

• Core deposit growth was robust at 20% annualized, and wealth management revenue grew 14% annualized.

• Total assets reached $9.2 billion, with loans at $6.8 billion and deposits at $7.3 billion as of March 31, 2025.

• Capital markets revenue declined due to macroeconomic and governmental uncertainty, but the pipeline for future transactions remains strong.

• CEO transition announced, with Larry Helling retiring and Todd Gipple succeeding.

Financial highlights

• Net interest income for Q1 2025 was $60 million, up 10% year-over-year, but down $1.2 million sequentially; adjusted NIM (TEY, non-GAAP) expanded to 3.41%.

• Noninterest income was $16.9 million, down 37% year-over-year, mainly due to a $10 million decrease in capital markets revenue.

• Noninterest expense declined to $46.5 million, down 8% year-over-year, primarily from lower variable compensation.

• Tangible book value per share reached $53.75 in 2024 (excluding AOCI), with a 12.3% CAGR over five years.

• Efficiency ratio (non-GAAP) was 60.54% for Q1 2025, improving from 66.25% in 2019.

Outlook and guidance

• Loan growth guidance for the full year is suspended due to uncertainty; Q2 2025 annualized loan growth projected at 4–6%.

• Capital markets revenue is projected at $50–$60 million over the next four quarters.

• Noninterest expense for Q2 2025 is guided to $50–$53 million.

• Effective tax rate for Q2 2025 expected in the 6–8% range.

• Long-term targets include 9% annual loan/lease growth, 6% annual fee income growth, and limiting annual operating expense growth to 5%.