QCR Holdings Reports $35.7M Q4 Net Income and Record $127.2M Annual Profit
QCR Holdings posted Q4 net income of $35.7 million, or $2.12 diluted EPS versus $30.2 million and $1.77 a year earlier, and achieved record annual net income of $127.2 million, or $7.49 EPS. Net interest income rose 22% to $68.4 million as NIM TEY expanded six basis points to 3.57%.
1. QCR Holdings Reports Strong Fourth Quarter and Record Full-Year Net Income
QCR Holdings achieved quarterly net income of $35.7 million, or $2.12 per diluted share, in Q4 2025, compared to $30.2 million, or $1.77 per share, in the year-ago period. Adjusted net income rose to $37.3 million, or $2.21 per diluted share, versus $32.8 million, or $1.93 per share, in Q4 2024. For the full year, the company posted record net income of $127.2 million, or $7.49 per diluted share, and adjusted net income of $129.6 million, or $7.64 per share, reflecting robust profitability across banking, wealth management and tax credit lending businesses.
2. Net Interest Income Growth Fueled by Margin Expansion
Net interest income in Q4 climbed to $68.4 million, a 22% annualized increase over the prior quarter, driven by net interest margin expansion to 3.57% on a tax-equivalent yield basis, up six basis points sequentially. The company reduced high-cost borrowings by $135.0 million through proceeds from a $285.3 million low-income housing tax credit loan sale, further lowering funding costs. Guidance for Q1 2026 anticipates an additional 3–7 basis point NIM TEY increase, assuming stable rate conditions.
3. Diversified Noninterest Income and Loan Growth Momentum
Noninterest income in the quarter reached $38.7 million, up 6% from Q3, with capital markets revenue of $24.5 million and wealth management revenue of $5.3 million, the latter reflecting an 11% year-over-year gain. Total loans expanded by $303.7 million, or 17% annualized, excluding the construction loan sale and equipment finance runoff, while full-year loan growth was 12% on the same basis. Management expects Q1 loan growth of 8–10%, accelerating to 10–15% annualized in the remaining 2026 quarters.
4. Stable Funding, Expense Discipline and Asset Quality
Core deposits grew by $64.2 million, or 4% annualized, in Q4, with full-year core deposit growth of 7% and total deposits reaching $7.4 billion. Brokered deposits declined by 34% year-over-year to just 3% of total deposits. Noninterest expense was $62.9 million, up due to a $2.0 million debt extinguishment loss and digital transformation costs, resulting in a 56.8% adjusted efficiency ratio. Criticized loans fell to 1.94% of total loans, the lowest in over five years, and nonperforming assets remained well controlled at $43.3 million.