QCR Holdings Reports Record Full-Year 2025 Net Income, Strong Q4 Growth & Margin Expansion
Summary
QCR Holdings, Inc. announced record net income for the full year 2025, driven by robust loan and deposit growth, expanding net interest margin, and strong capital markets revenue, alongside strategic capital management.
Key Events
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Record Full-Year Net Income
Achieved record annual net income of $127.2 million ($7.49 diluted EPS) and adjusted net income of $129.6 million ($7.64 diluted EPS) for 2025.
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Strong Q4 Performance
Reported Q4 2025 net income of $35.7 million ($2.12 diluted EPS) and adjusted net income of $37.3 million ($2.21 diluted EPS).
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Net Interest Margin Expansion
Q4 net interest income increased 22% annualized, with NIM TEY expanding 6 basis points to 3.57%. The company projects further NIM TEY expansion of 3-7 basis points in Q1 2026.
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Strategic LIHTC Loan Sale
Successfully sold $285.3 million of low-income housing tax credit (LIHTC) construction loans at par, using proceeds to retire high-cost Federal Home Loan Bank (FHLB) borrowings, which is expected to drive further margin expansion.
Analysis
QCR Holdings delivered exceptional financial performance in 2025, achieving record net income and diluted EPS. The fourth quarter demonstrated continued momentum with significant annualized loan growth, core deposit expansion, and a notable increase in net interest income and margin. A key strategic highlight was the successful sale of $285.3 million in LIHTC construction loans, which was used to reduce high-cost debt and is expected to further enhance future net interest margin. The company also returned capital to shareholders through substantial share repurchases and provided positive guidance for continued loan growth and margin expansion in 2026. These results underscore strong operational execution and a healthy financial position, supporting the stock's current trading near its 52-week high.
At the time of this filing, QCRH was trading at $88.13 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.5B. The 52-week trading range was $60.83 to $91.40. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.