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QCR Holdings (QCRH)
NASDAQ:QCRH

QCR Holdings (QCRH) AI Stock Analysis

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QCR Holdings

(NASDAQ:QCRH)

Rating:76Outperform
Price Target:
$76.00
â–²(8.02%Upside)
QCR Holdings' overall stock score reflects a well-managed regional bank with strong financial performance and attractive valuation. Key strengths include its robust deposit and wealth management growth and disciplined financial management. However, technical indicators suggest potential short-term bearish trends and macroeconomic uncertainties pose risks to growth projections.

QCR Holdings (QCRH) vs. SPDR S&P 500 ETF (SPY)

QCR Holdings Business Overview & Revenue Model

Company DescriptionQCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services. Its deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits. The company also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies. Its loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines. In addition, the company engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities. It serves the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, and Springfield communities. The company was founded in 1993 and is headquartered in Moline, Illinois.
How the Company Makes MoneyQCR Holdings makes money primarily through the interest income generated from loans and securities. Its subsidiary banks offer various loan products, including commercial and industrial loans, real estate loans, and consumer loans, which generate interest income. Additionally, the company earns revenue from service charges and fees associated with deposit accounts, treasury management services, and wealth management and advisory services. QCR Holdings also benefits from investment income on securities and gains from the sale of loans. The company's strategic focus includes expanding its loan portfolio, enhancing its fee-based services, and maintaining a strong net interest margin. Partnerships with local businesses and community involvement are significant factors in QCR Holdings' earnings, helping to drive customer loyalty and deposit growth.

QCR Holdings Earnings Call Summary

Earnings Call Date:Apr 22, 2025
(Q1-2025)
|
% Change Since: 3.53%|
Next Earnings Date:Jul 23, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a balanced outlook with robust deposit and wealth management growth offset by macroeconomic uncertainties impacting the LIHTC lending business and loan growth projections. Strong asset quality and capital levels were positive, but the suspension of full-year loan growth guidance and challenges in net interest income were notable concerns.
Q1-2025 Updates
Positive Updates
Robust Deposit Growth
Total annualized core deposit growth was at a robust 20%, significantly enhancing liquidity and reducing wholesale funding levels.
Wealth Management Growth
The wealth management business generated annualized revenue growth of 14% for the quarter, driven by growth in new client accounts and assets under management.
Strong Asset Quality
Non-performing assets as a percentage of total assets increased slightly by three basis points but remained well below historic averages. Total criticized loan balances decreased by 28 basis points, marking the lowest criticized ratio in five years.
Improved Capital Levels
Capital levels were strong with an increase in regulatory capital ratios driven by solid earnings and a smaller increase in total risk-weighted assets.
Negative Updates
Macroeconomic Uncertainty Impact
Macroeconomic uncertainty affected the LIHTC lending business, causing delays in projects and resulting in lower capital markets revenue in the first quarter.
Loan Growth Guidance Suspension
Due to heightened uncertainty, the company suspended its full-year loan growth guidance and provided a more conservative projection for the second quarter.
Net Interest Income Challenges
Despite a slight increase when adjusting for fewer days, net interest income faced headwinds related to the expiration of interest rate caps.
Company Guidance
During the first quarter of 2025, QCR Holdings reported net income of $26 million and adjusted net income of the same amount, with earnings per diluted share at $1.52, or $1.53 on an adjusted basis. The quarter was marked by a one basis point increase in the adjusted net interest margin on a tax-equivalent basis, despite a four basis point dilution from expired interest rate caps. The company experienced annualized loan growth of 4%, excluding the planned runoff of M2 equipment finance loans, and achieved robust core deposit growth of 20% annualized. Non-interest income totaled $17 million, with $7 million from capital markets revenue, although macroeconomic uncertainties affected the LIHTC lending business. Wealth management saw a 14% annualized revenue increase. Non-interest expenses decreased by 13% to $47 million, primarily due to lower variable compensation linked to reduced capital markets revenue. Asset quality remained strong, with a slight increase in non-performing assets by three basis points but a decrease in criticized loan balances by 28 basis points. The provision for credit losses was $4 million, down by $915,000 from the previous quarter. The company is targeting a 4% to 6% annualized loan growth rate for the second quarter of 2025, with plans to continue utilizing securitizations as a strategic tool as they approach $10 billion in assets.

QCR Holdings Financial Statement Overview

Summary
QCR Holdings exhibits strong revenue growth, a healthy net profit margin, and improved leverage. However, the incomplete income statement data for 2024 and the sharp decline in total debt require further scrutiny.
Income Statement
72
Positive
QCR Holdings has demonstrated strong revenue growth over the years, with a notable increase from $218.1 million in 2019 to $343.2 million in 2023. The net profit margin has remained healthy, reaching 33% in 2023, which indicates efficient cost management. However, the EBIT margin was not available for 2024 due to zero EBIT, which raises concerns about operating profitability. The 2024 data suggests a significant drop in total revenue, but this is likely due to incomplete data for that year.
Balance Sheet
65
Positive
The company's debt-to-equity ratio has improved from 0.50 in 2019 to 0.18 in 2023, indicating reduced leverage and increased financial stability. The return on equity (ROE) is strong, at 12.81% in 2023, showing effective use of equity capital. The equity ratio has also improved, reflecting a solid capital structure. However, there is a sharp decline in total debt in 2024, which needs further verification for sustainability.
Cash Flow
78
Positive
QCR Holdings' operating cash flow has grown consistently, with significant increases from $76.5 million in 2019 to $376.3 million in 2023. The free cash flow to net income ratio is impressive at 3.92 in 2023, indicating strong cash generation relative to net income. The company has managed to maintain positive free cash flow despite fluctuating capital expenditures.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue337.71M343.21M304.16M271.84M275.16M
Gross Profit59.78K337.15M304.16M271.84M275.16M
EBITDA0.00138.28M124.06M128.86M80.77M
Net Income113.85M113.56M99.07M98.91M60.58M
Balance Sheet
Total Assets9.03B8.54B7.95B6.10B5.71B
Cash, Cash Equivalents and Short-Term Investments516.28M132.57M468.04M450.61M509.89M
Total Debt567.73M716.79M696.26M167.00M171.68M
Total Liabilities8.03B7.65B696.26M167.00M171.68M
Stockholders Equity997.39M886.60M772.72M677.01M593.79M
Cash Flow
Free Cash Flow400.05M361.38M85.44M74.24M107.91M
Operating Cash Flow444.54M376.32M118.70M88.22M112.18M
Investing Cash Flow-845.23M-749.27M-634.69M-411.77M-704.48M
Financing Cash Flow395.30M410.35M538.23M299.71M577.38M

QCR Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price70.36
Price Trends
50DMA
67.02
Positive
100DMA
69.62
Positive
200DMA
75.54
Negative
Market Momentum
MACD
0.26
Negative
RSI
64.40
Neutral
STOCH
87.27
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For QCRH, the sentiment is Positive. The current price of 70.36 is above the 20-day moving average (MA) of 66.48, above the 50-day MA of 67.02, and below the 200-day MA of 75.54, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 64.40 is Neutral, neither overbought nor oversold. The STOCH value of 87.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for QCRH.

QCR Holdings Risk Analysis

QCR Holdings disclosed 43 risk factors in its most recent earnings report. QCR Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

QCR Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
LOLOB
77
Outperform
$1.42B23.956.10%0.40%12.30%-41.81%
BYBY
77
Outperform
$1.16B10.2711.08%1.50%7.63%-1.13%
76
Outperform
$1.15B10.2211.70%0.35%4.17%-0.91%
76
Outperform
$1.21B10.579.69%2.88%17.96%399.48%
76
Outperform
$1.27B12.1111.98%2.47%12.35%27.46%
67
Neutral
$16.85B11.659.71%3.90%11.61%-9.60%
67
Neutral
$1.20B42.962.45%3.71%-2.81%-64.24%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
QCRH
QCR Holdings
70.36
12.23
21.04%
BHLB
Berkshire Hills
26.05
4.12
18.79%
DCOM
Dime Community Bancshares
27.72
8.65
45.36%
RBCAA
Republic Bancorp
75.48
24.05
46.76%
LOB
Live Oak Bancshares
31.20
-2.27
-6.78%
BY
Byline Bancorp
27.65
4.27
18.26%

QCR Holdings Corporate Events

Executive/Board ChangesShareholder MeetingsDividends
QCR Holdings Announces Leadership Changes at Annual Meeting
Neutral
May 23, 2025

On May 22, 2025, QCR Holdings, Inc. held its Annual Meeting, where three Class II directors were re-elected, and the board size was reduced from 13 to 11 members following the retirement of Larry J. Helling and Donna J. Sorensen. Todd A. Gipple was appointed as Chief Executive Officer, and Nick W. Anderson as Chief Financial Officer, while Brittany N. Whitfield was named Chief Accounting Officer. The company also declared a cash dividend of $0.06 per share, payable on July 3, 2025.

The most recent analyst rating on (QCRH) stock is a Buy with a $86.00 price target. To see the full list of analyst forecasts on QCR Holdings stock, see the QCRH Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
QCR Holdings Highlights Strong Financial Performance
Positive
Apr 25, 2025

On April 25, 2025, QCR Holdings, Inc. released a presentation on its website highlighting its distinct operating model and strong financial performance. The company emphasized its local charter autonomy, which attracts top bankers, and its leading market position in growing mid-sized metros. QCR Holdings reported a 1.45% adjusted return on average assets over the past five years and significant growth in tangible book value and earnings per share. The company derives a substantial portion of its revenue from noninterest income, and its disciplined credit culture and experienced management team contribute to its success. The announcement underscores QCR Holdings’ ability to deliver shareholder value and maintain a strong market position.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 25, 2025