Q3 2024 QCR Holdings Inc Earnings Call Transcript
Key Points
- QCR Holdings Inc (QCRH) reported significant growth in net interest income, with a 6% increase driven by strong loan and investment growth.
- The company achieved robust core deposit growth of 8.5% year-to-date, contributing to stable funding costs and higher margins.
- Wealth management business saw a substantial increase in assets under management, adding nearly $1 billion year-to-date, which drove a 17% annualized increase in revenue for the quarter.
- QCR Holdings Inc (QCRH) maintained excellent credit quality, with a decrease in total criticized loans for the fourth consecutive quarter.
- The company successfully executed securitizations, improving liquidity and net interest margin, and plans further securitizations to sustain earnings growth.
- QCR Holdings Inc (QCRH) incurred a one-time charge of $2.4 million due to restructuring expenses and goodwill impairment at its m2 Equipment Finance subsidiary.
- Net charge-offs increased by $1.8 million in the third quarter, primarily due to smaller loans and leases at m2.
- The company recorded a loss of $414,000 on derivatives and a $473,000 loss on securitization in the third quarter.
- Non-interest expenses increased due to higher incentive compensation and advertising expenses, reaching the upper end of the guidance range.
- The decision to discontinue new loans and leases through the Equipment Finance business may impact future revenue streams.
Greetings, and welcome to the QCR Holdings, Inc., earnings conference call for the third quarter of 2024. Yesterday, after market closed, the company distributed its third-quarter earnings press release. If there is anyone on the call who has not received a copy, you may access it on the company's website www.qcrh.com.
With us today from management are Larry Helling, CEO; and Todd Gipple, President and CFO. Management will provide a summary of the financial results, and then we'll open the call to questions from analysts.
Before we begin, I would like to remind everyone that some of the information will be providing today falls under the guidelines of forward-looking statements as defined by the Securities and Exchange Commission. As part of these guidelines, any statements made during this call concerning the company's hopes, beliefs, expectations, and predictions of the future are forward-looking statements, and actual results could differ materially from those projected. Additional information on these factors is included in
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