QCR will discontinue offering new loans and leases through its equipment finance business, m2 Equipment Finance, located in Waukesha, WI.
“We expect that this change will improve our profitability, increase liquidity, reduce our credit losses and allow the company to allocate capital to assets with higher risk-adjusted returns,” Larry J. Helling, CEO of QCR, said. “We will focus our efforts on business units with more opportunity to build client relationships with greater deposit gathering potential.”
m2 will continue to service its existing $360 million equipment finance portfolio with a reduced staff. The company expects the majority of the portfolio to amortize over the next three years. One-time restructuring expenses of approximately $2.1 million and a goodwill write-down of approximately $0.4 million will be recognized in Q3/24. The company expects to earn back the one-time charge in two quarters.
“While m2 has been an important contributor to our company over the past 19 years, market dynamics have continued to evolve, and it became clear that m2 would not achieve our expected returns over the long term,” Helling said. “We are extremely grateful to our m2 colleagues for their dedication to serving clients and their contribution to the overall success of QCRH.”
