QCR (QCRH) Q4 2025 earnings summary

Executive summary

• Achieved record adjusted net income of $37.3M for Q4 2025 and $129.6M for the full year, driven by net interest margin expansion, robust loan and deposit growth, and strong capital markets and wealth management revenue.

• All business lines—traditional banking, wealth management, and LIHTC lending—produced outstanding results, with significant new client relationships and market share gains.

• Midwest-based bank holding company with $9.6B in assets, operating 36 locations across three states and over 1,000 employees, with a relationship-driven model and local charter autonomy.

• Digital transformation advanced with core system conversions completed, enhancing client experience and operational efficiency.

• Delivers strong returns on average assets and consistent profitable growth, with diversified noninterest income sources contributing to upper quartile industry performance.

Financial highlights

• Net interest income for Q4 2025 was $68.4M, up $3.6M (22% annualized) from Q3, and $23M (10%) for the year, supported by margin expansion and higher average earning assets.

• Noninterest income reached $39M in Q4, with $25M from capital markets revenue; full-year capital markets revenue was $65M, exceeding guidance.

• Wealth management revenue grew 11% year-over-year, with $5.3M in Q4 2025.

• Tangible book value per share increased $2.08 in Q4 (15% annualized), with a 5-year CAGR of 13%, reaching $60.89 in 2025.

• Core deposits grew 4% annualized in Q4 and 7% for the year; brokered deposits declined 34% in 2025.

Outlook and guidance

• Guiding to $55M–$70M in capital markets revenue over the next four quarters, with Q1 expected to be seasonally slower.

• Expecting 8%–10% gross loan growth in Q1 2026, ramping to 10%–15% for the remainder of the year.

• Noninterest expenses projected at $55M–$58M for Q1 2026, maintaining discipline under the 9-6-5 strategic model and keeping growth below 5%.

• Effective tax rate guided to 8%–10% for Q1 2026, expected to remain stable.

• Securitization of LIHTC loans expected to sustain future asset and capital markets revenue generation, targeting a $300M–$350M securitization by mid-2026.