QCR Holdings Inc (QCRH) Announces Q3 2023 Earnings
QCR Holdings Inc (NASDAQ:QCRH) reported a net income of $25.1 million for Q3 2023, with a diluted EPS of $1.49.
Net interest income for the third quarter of 2023 totaled $55.3 million, an increase of $2.1 million from the second quarter.
Noninterest income for the third quarter of 2023 totaled $26.6 million, down from the very strong $32.5 million for the second quarter of 2023.
Noninterest expense for the third quarter of 2023 totaled $51.1 million, an increase of 2.8% from $49.7 million for the second quarter of 2023.
QCR Holdings Inc (NASDAQ:QCRH) announced its Q3 2023 earnings on October 25, 2023. The company reported a net income of $25.1 million and a diluted earnings per share (EPS) of $1.49. This compares to a net income of $28.4 million and a diluted EPS of $1.69 for the second quarter of 2023.
Financial Performance
The company's net interest income for the third quarter of 2023 totaled $55.3 million, an increase of $2.1 million from the second quarter. The adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the third quarter of 2023 were $25.4 million and $1.51, respectively.
Noninterest income for the third quarter of 2023 totaled $26.6 million, down from the very strong $32.5 million for the second quarter of 2023. The company generated $15.6 million of capital markets revenue in the quarter, as compared to the outsized performance of $22.5 million in the prior quarter.
Expenses and Loan Growth
Noninterest expense for the third quarter of 2023 totaled $51.1 million, an increase of 2.8% from $49.7 million for the second quarter of 2023. The linked-quarter increase was primarily due to higher variable employee compensation related to year-to-date performance, increased professional and data processing fees and other expenses related to fixed asset disposals.
During the third quarter of 2023, the companys total loans and leases grew $227.0 million to a total of $6.6 billion, or 14.2% on an annualized basis. The loan growth during the quarter was driven primarily by strength in the company's low-income housing tax credit lending business as well as growth in its traditional lending business.
Asset Quality and Deposits
The company's asset quality continues to be strong as the ratio of nonperforming assets to total assets was 0.41% at quarter-end. During the third quarter of 2023, the companys core deposits, which exclude brokered deposits, remained relatively stable. Core deposits decreased slightly by $9.0 million, or 0.1%, after growing $339.3 million, or 23.0% on an annualized basis during the second quarter of 2023.
Capital Levels
As of September 30, 2023, the companys total risk-based capital ratio was 14.40%, the common equity tier 1 ratio was 9.63% and the tangible common equity to tangible assets ratio (non-GAAP) was 8.05%. The company remains focused on growing capital and targeting capital levels in the top quartile of the companys peer group.
Explore the complete 8-K earnings release (here) from QCR Holdings Inc for further details.
This article first appeared on GuruFocus.
