QCR Holdings, Inc. (QCRH) Bundle
A Brief History of QCR Holdings, Inc.
QCR Holdings, Inc. has evolved significantly since its founding. The company operates as a bank holding company, primarily through its subsidiaries engaged in commercial banking and financial services. As of 2024, QCR Holdings has established itself as a key player in the financial sector, with a focus on providing banking services to businesses and consumers.
Financial Performance Overview
For the third quarter of 2024, QCR Holdings reported a net income of $27.8 million, translating to a diluted earnings per share (EPS) of $1.64. This represents a slight decrease from the previous quarter’s net income of $29.1 million and diluted EPS of $1.72. In comparison to the same quarter in 2023, the net income increased from $25.1 million, highlighting the company's growth trajectory.
| Period | Net Income (in millions) | Diluted EPS |
|---|---|---|
| Q3 2024 | $27.8 | $1.64 |
| Q2 2024 | $29.1 | $1.72 |
| Q3 2023 | $25.1 | $1.49 |
Asset Growth and Composition
As of September 30, 2024, QCR Holdings reported total assets amounting to $9.1 billion, reflecting a 2% increase from $8.9 billion at the end of June 2024. The company's total loans/leases stood at $6.8 billion, with a diverse portfolio comprising various types of loans, including commercial and residential real estate.
| Loan Type | Amount (in thousands) | Percentage of Total |
|---|---|---|
| C&I - Revolving | $387,409 | 6% |
| C&I - Other | $1,410,081 | 21% |
| CRE - Owner Occupied | $622,072 | 9% |
| CRE - Non-Owner Occupied | $1,103,694 | 16% |
| Construction and Land Development | $1,256,176 | 18% |
| Multi-Family | $1,297,772 | 19% |
| Direct Financing Leases | $19,241 | - |
| 1-4 Family Real Estate | $587,512 | 9% |
| Consumer | $144,845 | 2% |
Revenue Streams
In the third quarter of 2024, QCR Holdings generated a total revenue of $59.7 million, with net interest income accounting for a significant portion at $59.7 million. This indicates robust operational efficiency and strong demand for the company’s banking products and services.
Capital and Equity
As of September 30, 2024, total stockholders' equity reached $976.6 million, reflecting an increase of 11% from $936.3 million in June 2024. This growth is indicative of the company's successful capital management strategies and profitability.
| Period | Total Stockholders' Equity (in millions) |
|---|---|
| September 30, 2024 | $976.6 |
| June 30, 2024 | $936.3 |
| December 31, 2023 | $886.6 |
Market Positioning
QCR Holdings continues to adapt to market changes and consumer demands, leveraging its diversified loan portfolio and strategic banking services. The company remains committed to enhancing shareholder value through prudent financial management and growth initiatives.
A Who Owns QCR Holdings, Inc. (QCRH)
Ownership Structure
As of 2024, QCR Holdings, Inc. (QCRH) has a diverse ownership structure comprising institutional investors, insiders, and retail investors.
| Owner Type | Percentage Ownership | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 58.7% | 9,800,000 |
| Insiders | 5.2% | 870,000 |
| Retail Investors | 36.1% | 6,000,000 |
Major Institutional Shareholders
The following table lists the major institutional shareholders of QCR Holdings, Inc. as of 2024.
| Institution Name | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,500,000 | 8.9% |
| The Vanguard Group, Inc. | 1,200,000 | 7.1% |
| State Street Corporation | 1,100,000 | 6.5% |
| Dimensional Fund Advisors LP | 900,000 | 5.3% |
| Wellington Management Co. LLP | 800,000 | 4.7% |
Insider Ownership
Key insiders hold a significant portion of shares, contributing to the overall ownership structure.
| Insider Name | Position | Shares Owned |
|---|---|---|
| Doug Hultquist | CEO | 250,000 |
| Jill E. Bock | CFO | 150,000 |
| James H. Campbell | Chairman | 100,000 |
| Mary T. Jones | Director | 70,000 |
| Robert A. Smith | Director | 50,000 |
Recent Shareholder Changes
In the first quarter of 2024, QCR Holdings recorded an increase in institutional ownership by approximately 2% due to increased investments from mutual funds.
| Quarter | Institutional Ownership Change | Insider Ownership Change |
|---|---|---|
| Q1 2024 | +2% | -0.5% |
| Q4 2023 | +1.5% | -0.2% |
Stock Performance and Market Trends
QCR Holdings, Inc. shares traded at an average price of $56.50 in early 2024, reflecting a year-to-date increase of 12% from the previous year. The market capitalization as of March 2024 was approximately $1.45 billion.
| Date | Stock Price | Market Capitalization |
|---|---|---|
| January 2024 | $52.00 | $1.30 billion |
| February 2024 | $54.50 | $1.40 billion |
| March 2024 | $56.50 | $1.45 billion |
QCR Holdings, Inc. (QCRH) Mission Statement
Mission Overview
The mission of QCR Holdings, Inc. is to be a leading financial institution by providing innovative banking solutions while maintaining a commitment to service excellence and community involvement. The company aims to create value for its shareholders while serving the financial needs of its customers and contributing to the communities it operates in.
Core Values
- Customer Focus: Prioritizing the needs and satisfaction of customers through personalized service.
- Integrity: Conducting business with honesty and transparency.
- Community Engagement: Actively participating in community development and support initiatives.
- Innovation: Continuously improving products and services through innovative solutions.
- Teamwork: Fostering a collaborative environment to achieve common goals.
Strategic Objectives
QCR Holdings, Inc. has set specific strategic objectives to guide its operations and growth:
- Achieve a loan and lease growth of at least 9% annually.
- Increase fee-based income by a minimum of 6% per year.
- Limit annual operating expense growth to below 5%.
Recent Financial Performance
As of the third quarter of 2024, QCR Holdings reported the following financial metrics:
| Metric | Q3 2024 | Q2 2024 | Q3 2023 |
|---|---|---|---|
| Net Income | $27.785 million | $29.114 million | $25.121 million |
| Diluted Earnings per Share | $1.64 | $1.72 | $1.49 |
| Total Revenue | $135.161 million | $142.049 million | $131.313 million |
| Net Interest Income | $59.722 million | $56.163 million | $55.255 million |
| Provision for Credit Losses | $3.484 million | $5.496 million | $3.806 million |
Capital and Regulatory Compliance
As of September 30, 2024, QCR Holdings maintained strong capital ratios as follows:
| Capital Ratio | Actual | Minimum Requirement | Well Capitalized Requirement |
|---|---|---|---|
| Total Risk-Based Capital | $1,243,438 (13.87%) | $717,351 (8.00%) | $896,689 (10.00%) |
| Tier 1 Risk-Based Capital | $926,516 (10.33%) | $538,013 (6.00%) | $717,351 (8.00%) |
| Tier 1 Leverage | $926,516 (10.50%) | $352,823 (4.00%) | $441,029 (5.00%) |
| Common Equity Tier 1 | $877,688 (9.79%) | $403,510 (4.50%) | $582,848 (6.50%) |
Community Involvement
QCR Holdings engages in various community initiatives, reflecting its commitment to social responsibility. Recent activities include:
- Supporting local educational programs.
- Participating in community health initiatives.
- Providing financial literacy programs for underserved populations.
How QCR Holdings, Inc. (QCRH) Works
Business Overview
QCR Holdings, Inc. (QCRH) operates as a financial holding company that provides various banking and financial services through its subsidiaries. The company primarily focuses on commercial banking, which includes lending and deposit services, wealth management, and capital markets services. As of September 30, 2024, the company reported total assets of $9.1 billion, a 2% increase from June 30, 2024.
Financial Performance
For the three months ended September 30, 2024, QCRH reported a net income of $27.8 million, or $1.64 per diluted share, compared to $25.1 million, or $1.49 per diluted share in the same period of 2023. For the nine months ended September 30, 2024, the net income was $83.6 million, or $4.94 per diluted share, compared to $80.7 million, or $4.79 per diluted share for the same period in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income (in thousands) | $27,785 | $25,121 | $83,625 | $80,703 |
| Diluted EPS | $1.64 | $1.49 | $4.94 | $4.79 |
| Net Interest Income (in thousands) | $59,722 | $55,255 | $170,584 | $165,270 |
| Provision for Credit Losses (in thousands) | $3,484 | $3,806 | $11,949 | $11,340 |
| Total Assets (in thousands) | $9,088,565 | N/A | N/A | N/A |
Operational Segments
QCRH operates through several segments, including Commercial Banking, Wealth Management, and Capital Markets. The commercial banking segment provides a range of financial services, primarily focusing on loans and deposits. As of September 30, 2024, total loans and leases amounted to $6.83 billion.
| Loan Portfolio Composition | Amount (in thousands) | Percentage |
|---|---|---|
| C&I - Revolving | $387,409 | 6% |
| C&I - Other | $1,410,081 | 21% |
| CRE - Owner Occupied | $622,072 | 9% |
| CRE - Non-Owner Occupied | $1,103,694 | 16% |
| Construction and Land Development | $1,256,176 | 18% |
| Multi-Family | $1,297,772 | 19% |
| 1-4 Family Real Estate | $587,512 | 9% |
| Consumer | $144,845 | 2% |
| Total Loans/Leases | $6,828,802 | 100% |
Regulatory Capital and Liquidity
As of September 30, 2024, the company maintained a total stockholders' equity of $976.6 million, representing approximately 11% of total liabilities and stockholders' equity. The subsidiary banks are classified as "well-capitalized" under regulatory guidelines. The company has also emphasized growing its lines of credit, with 26 lines totaling $867.4 million available.
Strategic Financial Metrics
QCRH has established targets for its strategic financial metrics, aiming for loan and lease growth of 9% annually and fee-based income growth of at least 6% per year. As of September 30, 2024, the company reported a loan and lease growth rate of 5.8%.
| Strategic Financial Metric | Target | Actual (as of September 30, 2024) |
|---|---|---|
| Loan and Lease Growth | > 9% annually | 5.8% |
| Fee Income Growth | > 6% annually | (16.8)% |
| Noninterest Expense Growth | < 5% annually | (3.8)% |
How QCR Holdings, Inc. (QCRH) Makes Money
Revenue Streams
QCR Holdings, Inc. (QCRH) generates revenue through various streams, with primary contributions from net interest income and noninterest income.
Net Interest Income
Net interest income represents the difference between interest earned on loans and investments and interest paid on deposits and borrowings. For the nine months ended September 30, 2024, net interest income was $170.6 million, an increase from $165.3 million for the same period in 2023. The net interest margin for the third quarter of 2024 was 2.90%, compared to 2.82% in the same quarter of the previous year.
| Period | Net Interest Income (in thousands) | Net Interest Margin |
|---|---|---|
| Q3 2024 | $59,722 | 2.90% |
| Q2 2024 | $56,163 | 2.82% |
| Q3 2023 | $55,255 | 2.82% |
| 9M 2024 | $170,584 | N/A |
| 9M 2023 | $165,270 | N/A |
Noninterest Income
Noninterest income includes fees from various services, such as trust fees, investment advisory fees, and capital markets revenue. For the nine months ended September 30, 2024, noninterest income was $84.9 million, almost unchanged from $85.0 million for the same period in 2023.
Trust and Investment Advisory Fees
Trust fees increased by 14% in Q3 2024 compared to Q3 2023, reflecting strong asset performance and new client additions. Investment advisory and management fees also rose by 30% year-over-year in Q3 2024.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change |
|---|---|---|---|
| Trust Fees | $9,572 | $8,613 | +14% |
| Investment Advisory Fees | $3,544 | $2,812 | +30% |
| Total Noninterest Income | $27,157 | $26,593 | +2% |
Capital Markets Revenue
Capital markets revenue, primarily from swap fee income, was $16.3 million for Q3 2024, compared to $15.6 million in Q3 2023. This revenue stream is influenced by interest rate fluctuations.
Loan and Deposit Growth
QCRH has experienced significant growth in both loans and deposits. Total deposits reached $6.98 billion as of September 30, 2024, up 3% from the previous quarter. The company’s loan portfolio includes approximately $6.74 billion in loans and leases.
| Category | Amount (in thousands) | Change |
|---|---|---|
| Total Deposits | $6,984,633 | +3% |
| Total Loans/Leases | $6,742,481 | -1.5% (annualized) |
Credit Loss Provisioning
For the nine months ended September 30, 2024, the provision for credit losses was $11.9 million, slightly up from $11.3 million in the same period in 2023. This increase reflects the company's strategy to maintain credit quality amid strong loan growth.
Expenses
Noninterest expenses for the nine months ended September 30, 2024, totaled $154.1 million, compared to $149.6 million for the same period in 2023. Major expense categories include salaries and employee benefits, occupancy costs, and professional fees.
| Expense Category | 9M 2024 (in thousands) | 9M 2023 (in thousands) |
|---|---|---|
| Salaries and Employee Benefits | $31,637 | $32,098 |
| Occupancy and Equipment Expense | $6,168 | $6,228 |
| Professional Fees | $4,457 | $4,456 |
| Total Noninterest Expense | $154,143 | $149,593 |
Net Income and Earnings Per Share
For the nine months ended September 30, 2024, QCRH reported net income of $83.6 million, with diluted earnings per share of $4.94. This compares to net income of $80.7 million and diluted EPS of $4.79 for the same period in 2023.
| Period | Net Income (in thousands) | Diluted EPS |
|---|---|---|
| 9M 2024 | $83,625 | $4.94 |
| 9M 2023 | $80,703 | $4.79 |
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Updated on 16 Nov 2024
Resources:
- QCR Holdings, Inc. (QCRH) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of QCR Holdings, Inc. (QCRH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View QCR Holdings, Inc. (QCRH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.