QCR (QCRH) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $27.8 million ($1.64 per diluted share), with adjusted net income of $30.3 million ($1.78 per diluted share), reflecting strong core performance and margin expansion.

• Net interest income grew 6% sequentially and 8% year-over-year, driven by loan and investment growth and margin expansion.

• Tangible book value per share grew $2.35 (20% annualized), and the tangible common equity to tangible assets ratio improved to 9.24%.

• Total assets reached $9.1 billion, with $6.8 billion in net loans/leases and $7.0 billion in deposits as of September 30, 2024.

• The company operates four bank charters with $6.2B in wealth management AUM and diversified business lines across 36 locations.

Financial highlights

• Net interest income for Q3 2024 was $59.7 million, up 8% from Q3 2023; noninterest income was $27.2 million, with $16.3 million from capital markets.

• Adjusted EPS grew at a 13.9% CAGR from $3.66 (2019) to $6.80 (annualized 9/30/24); tangible book value per share increased at a 12.4% CAGR to $49.00.

• Loans grew at a 13.8% CAGR to $6.8B; core deposits at a 16.0% CAGR to $6.6B (9/30/24).

• Noninterest expense for Q3 2024 was $53.6 million, including $2.0 million in restructuring and $0.4 million in goodwill impairment charges.

• Year-to-date annualized loan growth was 6% (10.5% including securitized loans), exceeding the 8%-10% target.

Outlook and guidance

• Management anticipates continued net interest income growth in Q4, with adjusted NIM (TEY) guidance for a 2–7 basis point increase.

• Full-year 2024 loan growth target remains 8–10% prior to loan securitizations.

• Capital markets revenue guidance reaffirmed at $50 million–$60 million for the next twelve months.

• Noninterest expenses expected to remain in the $49 million–$53.6 million range in Q4.

• Effective tax rate expected to be 8%–10% in Q4.