QCR Holdings, Inc. has recently released its 10-K report, providing a comprehensive insight into its financial performance and operations. QCR is a multi-bank holding company offering commercial and consumer banking, trust, and asset management services. As of December 31, 2024, the company boasted $9.0 billion in consolidated assets, including $6.7 billion in total loans/leases and $7.1 billion in deposits. QCR's financial results of acquired entities for the periods since their acquisition are included in the 10-K report.
In the "Management’s Discussion and Analysis of Financial Condition and Results of Operations" section, QCR reported a net income of $113.9 million for the year ended December 31, 2024, with diluted earnings per common share at $6.71. This was comparable to the net income of $113.6 million and diluted earnings per common share of $6.73 for the same period in 2023. Noteworthy highlights for the year ended December 31, 2024, included record annual net income, significant capital markets revenue of $71.1 million, robust loan growth of 10%, and strong deposit growth of 8%. The company also saw an increase in tangible book value per share and an improved TCE/TA ratio.
In the same report, QCR discussed its critical accounting policies and estimates. The company's allowance for credit losses on loans and leases and off-balance sheet exposures were highlighted, with management noting that a decline in local economic conditions or other factors could result in increasing losses that cannot be reasonably predicted at this time. Additionally, the report detailed the company's approach to goodwill impairment assessment, stating that it records all assets and liabilities purchased in an acquisition at fair value and is subject to annual tests for impairment.
The report also outlined the company's strategic financial metrics, which include growing loans/leases by 9% per year, growing fee-based income by at least 6% per year, and limiting annual operating expense growth to 5% per year. QCR reported that it achieved a 9.6% loan and lease growth organically in 2024, while fee income growth was negative at 10.8%, and noninterest expense growth was reported at -2.4%.
The 10-K report provided a detailed breakdown of the company's financials, including net interest income, provision for credit losses, noninterest income, noninterest expense, and federal and state income tax expense for the years ended December 31, 2024, and 2023. Notably, net interest income increased by $10.8 million in 2024 compared to the prior year, primarily due to higher loan and investment average balances and margin expansion from higher loan yields. However, noninterest income decreased by $17.2 million in 2024 compared to the prior year, primarily due to lower capital markets revenue from swap fees.
The report also discussed the company's strategic developments in 2024, highlighting actions taken to support its corporate strategy and further its strategic financial metrics. These actions included loan growth, LIHTC loan securitizations, and the company's correspondent banking line of business.
Following these announcements, the company's shares moved 0.9%, and are now trading at a price of $75.33. For more information, read the company's full 10-K submission here.
