QCR (QCRH) Q2 2024 earnings summary

Executive summary

• Net income for Q2 2024 was $29.1 million ($1.72 per diluted share), up from $26.7 million and $1.58 in Q1 2024, and $28.4 million and $1.69 in Q2 2023.

• Adjusted net income (non-GAAP) for Q2 2024 was $29.3 million ($1.73 per diluted share), excluding non-recurring items.

• Net interest income grew 3% sequentially to $56.2 million, driven by higher loan balances and margin expansion.

• Capital markets revenue was $17.8 million in Q2 2024, with noninterest income up 15% sequentially.

• Tangible book value per share grew $1.72, or 15% annualized, in Q2 2024.

Financial highlights

• Net interest income reached $56.2 million, up 3% from Q1 and 6% year-over-year.

• Adjusted NIM (tax equivalent, non-GAAP) improved by 2 basis points sequentially to 3.27%.

• Noninterest income was $31 million, up from $27 million in Q1, with $18 million from capital markets.

• Noninterest expense was $49.9 million, down nearly 2% from Q1 2024, with an efficiency ratio of 57%.

• Total assets at quarter-end were $8.9 billion, with $6.9 billion in loans and $6.8 billion in deposits.

Outlook and guidance

• Management expects Q3 2024 adjusted NIM (TEY, non-GAAP) to be static to up 5 bps.

• Full-year 2024 loan growth target maintained at 8%-10% prior to planned loan securitizations.

• Noninterest expenses expected to remain in the $49-$52 million range for Q3.

• Effective tax rate expected to remain 8%-10% for 2024.

• Fee-based income and core deposit growth remain strategic priorities.