QCR Holdings, Inc. – Strong Noninterest Income Performance

By Tamara Parker • Friday, April 25 10:05 • Permanent Link

In Q1 2025, QCR Holdings, Inc. reported $9.2 billion in total assets and $6.3 billion in Wealth Management AUM. The company has over 1000 dedicated team members and operates across 36 locations in three states.

The company's noninterest income sources contribute significantly to its upper quartile performance compared to industry peers. QCR Holdings, Inc. derives 22% of its revenue from noninterest income, totaling $17 million in Q1 2025.

Over the past five years, the company has delivered a 1.45% adjusted return on average assets. Its 5, 10, and 20-year Tangible Book Value and Earnings per Share growth have been significantly above Proxy Peers.

QCR Holdings, Inc. has seen consistent growth in various financial metrics. Its adjusted earnings per share grew at a CAGR of 11% from 2020 to 2024, reaching $6.82 in 2024. Tangible Book Value per Share also demonstrated a strong CAGR of 12.3% over the same period, reaching $53.75 in 2024.

The company's Specialty Finance Group ("SFG") has shown robust performance, with a CAGR of 18.9% from 2020 to Q1 2025. The SFG business has strong pipelines built on relationships, complexity creating significant barriers to entry by competitors, and strategic use of securitization for long-term sustainability and growth.

QCR Holdings, Inc.'s Low Income Housing Tax Credit Loans have demonstrated a long track record of strong performance, with very low historical industry-wide defaults and a cumulative foreclosure rate of 0.22% since the program's inception in 1986. The company successfully closed the first four securitizations, selling nearly $650MM of LIHTC loans via Freddie Mac Programs.

In the Wealth Management segment, the company has seen significant revenue growth, with a CAGR of 11.2% from 2020 to Q1 2025. This segment offers a broad scope of services, including financial planning, tax, and custody services.

Following these announcements, the company's shares moved -1.0%, and are now trading at a price of $64.47. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.