QCR's Q4 2024 Earnings Call: Dissecting Contradictions in Margin Expansion, Securitization, and Loan Growth Strategies

Record Financial Performance:
- QCR Holdings, Inc. delivered record net income of $114 million or $6.71 per diluted share for the full year 2024, with record net income on an adjusted basis of $119 million or $7.03 per diluted share.
- This was driven by significant growth in net interest income, robust loan growth, strong capital markets and wealth management revenue, and tightly managed core operating expenses.

Loan Growth and Securitization Strategy:
- Total loan growth for 2024 was 10%, with a net basis of 4%, driven by the low-income housing tax credit lending program and conventional commercial lending.
- The company executed two LIHTC loan securitizations during 2024, supporting its LIHTC lending business and contributing to capital markets revenue.

Deposit Growth and Liquidity:
- Total core deposits grew by $474 million or 8% for the year, outpacing net loan growth, improving immediate liquidity, and reducing the loan-to-deposit ratio.
- The growth was supported by significant increases in new client accounts and strong relationships with existing clients.

Wealth Management Expansion:
- QCR Holdings' Wealth Management business assets under management increased by $1 billion or 20% from the previous year, leading to a 15% increase in total wealth management revenue.
- The expansion was driven by new client accounts and favorable market performance, with expectations of continued growth through strategic personnel additions in key regions.