QCRH · QCRH Q2 FY2026 earnings call record财报电话会记录

“Our LIHTC lending business continues to perform exceptionally well as the demand for affordable housing remains robust, driven by a lack of supply and ongoing affordability challenges nationwide.”

“Given the robust pipelines in our traditional and LIHTC lending platforms, we are reaffirming our guidance for gross annualized loan growth of 10%-15% over the final two quarters of 2026.”

“We anticipate growing beyond $10 billion sometime in 2027, and we will be fully prepared for the associated organizational impacts that would occur in mid-2028 as we continue to build on the planning efforts we began back in 2023.”

“Robust earning asset growth more than offset the impact of the LIHTC offtake transactions, driving higher interest income as average earning assets increased $46 million.”

“We also project our non-taxable investment yields to continue expanding, supported by a solid pipeline of new municipal bonds yielding between 7% and 7.5% on a tax equivalent basis.”

“WAC fee capital markets revenue of $17 million increased $6 million or 56% from the prior quarter, partially offset by a $1.3 million loss from the Freddie Mac LIHTC securitization.”

“This outlook reflects our disciplined approach to expense management under our 9-6-5 strategic model, which is designed to keep annual non-interest expense growth below 5%, driving operating leverage, improving efficiency, and enhancing profitability.”

“During the second quarter, we returned almost $13.5 million of capital to shareholders, with approximately 150,000 common shares repurchased.”

“Since we began repurchasing shares last year, we have repurchased 675,000 common shares, approximately 4% of total shares outstanding, returning a total of nearly $56 million to our shareholders.”

“The common equity Tier 1 ratio increased 14 basis points to 10.68%, and our total risk-based capital ratio increased 13 basis points to 14.13%.”

“Finally, our effective tax rate for the quarter was 8%, up from 7% in the prior quarter, reflecting stronger capital markets activity, which impacted the mix of our tax-exempt income relative to our taxable income.”

“On page 27, we show what we were able to do in central Iowa with the CSB acquisition, buying a $500 million bank and turning it into a $1.3 billion bank organically 10 years later, and improving profitability from the 1% ROA to a 1.3%.”