- QCR Holdings (QCRH, Financial) reports a net income of $25.8 million for Q1 2025, or $1.52 per diluted share.
- Core deposits grew by 20% annualized, while wealth management revenue saw a 14% increase.
- The tangible book value per share rose by $1.43, marking an 11% annualized growth.
QCR Holdings, Inc. (QCRH) announced its financial results for the first quarter of 2025, reporting a net income of $25.8 million, or $1.52 per diluted share. This represents a decline from the fourth quarter of 2024, where net income stood at $30.2 million ($1.77 per share).
Despite the earnings decrease, the company achieved a significant 20% annualized growth in core deposits, which facilitated a reduction in brokered deposits by $56 million and overnight FHLB advances by $140 million. Furthermore, wealth management revenue increased by 14% on an annualized basis, highlighting a diversification of income streams.
QCR Holdings also reported a tangible book value per share growth of $1.43, translating to an 11% annualized increase. The net interest margin on a tax-equivalent yield (NIM TEY) held stable at 3.42%, while the adjusted NIM TEY rose by one basis point to 3.41%.
In terms of asset quality, the nonperforming assets ratio was stable at 0.53%, and the criticized loans ratio improved to 2.06%, the lowest in five years. The company's capital markets revenue for the quarter was $6.5 million, a sharp decline from $20.6 million in the previous quarter.
Looking forward, QCR Holdings projects an annualized loan growth rate of 4% to 6% for the second quarter of 2025, as they continue to manage expense flexibility and build a strong pipeline for future transactions.
