QCR (QCRH) Q2 2025 earnings summary

Executive summary

• Net income for Q2 2025 was $29.0 million, or $1.71 per diluted share, up from $25.8 million and $1.52 in Q1 2025; adjusted net income was $29.4 million, or $1.73 per share, with EPS up 13% over Q1, driven by NIM expansion, strong loan growth, and improved capital markets revenue.

• Tangible book value per share increased $1.64, or 13% annualized, and TCE/TA ratio improved to 9.92%.

• Nonperforming assets declined by $5.5 million (11%) to $42.7 million; asset quality remains excellent with net charge-offs tied to previously reserved credits.

• Relationship-driven model, diversified noninterest income, and consistent top-tier financial performance versus peers.

Financial highlights

• Net interest income for Q2 2025 was $62.1 million, up $2.1 million from Q1 and 11% year-over-year, with NIM (TEY) up 4 basis points to 3.46%.

• Noninterest income totaled $22.1 million, including $9.9–10 million in capital markets revenue, up 51% sequentially but down 28% year-over-year.

• Noninterest expense was $49.6 million, below guidance and down 1% year-over-year.

• Wealth management revenue was $4.6–5 million, up 8% year-over-year.

• Total loans and leases held for investment grew by $102.6 million to $6.9 billion, with loan growth rebounding to an annualized 8%.

Outlook and guidance

• NIM (TEY) for Q3 2025 expected to be static to up 4 basis points, assuming no Fed rate cuts.

• Capital markets revenue guidance reaffirmed at $50–$60 million over the next four quarters; Q3 expected at $13–$16 million.

• Gross loan growth for H2 2025 guided at 8–10%; noninterest expense expected at $52–$55 million in Q3 2025.

• Effective tax rate expected to be 6–8% for Q3 2025, rising in the second half as revenue mix normalizes.

• Long-term targets: 9% annual loan/lease growth, 6% annual fee income growth, and 5% annual operating expense growth.