QCR (QCRH) Q3 2025 earnings summary

Executive summary

• Achieved record quarterly net income of $36.7 million and diluted EPS of $2.16 for Q3 2025, up 26% sequentially and 32% year-over-year, with adjusted net income of $36.9 million or $2.17 per share, driven by strong performance across all core business lines and a rebound in capital markets revenue.

• Midwest-based bank holding company with $9.6B in assets and $7.0B in wealth management AUM as of 9/30/25, operating 36 locations across three states.

• Diversified business lines, including specialty finance, wealth management, and correspondent banking, drive strong noninterest income and consistent top-tier financial performance.

• Robust organic growth in traditional banking, wealth management, and LIHTC lending platforms, supported by digital transformation and operational efficiency improvements.

• Outperformed proxy peers in EPS, tangible book value, and stock price growth.

Financial highlights

• Net interest income for Q3 2025 was $64.8 million, up $2.7 million or 18% annualized from Q2 2025 and 9% year-over-year.

• Noninterest income totaled $37 million, with capital markets revenue up 141% sequentially to $23.8 million and wealth management revenue up 8% sequentially and 15% annualized year-over-year.

• Efficiency ratio improved to 55.8%, the lowest in four years.

• Tangible book value per share rose $2.50 to $55.78, reflecting 19% annualized growth for the quarter and a 12% CAGR since 2020.

• Loans grew to $7.2B, with 11.4% CAGR since 2020; commercial loans represent 92% of the portfolio.

Outlook and guidance

• Guiding to gross annualized loan growth of 10%-15% for Q4 2025.

• Capital markets revenue guidance increased to $55–$65 million over the next four quarters.

• Expecting NIM TEY to expand by 3–7 basis points in Q4 2025, with additional accretion possible from further Fed rate cuts.

• Noninterest expense guidance for Q4 set at $52–$55 million, including digital transformation costs.

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