QCR Holdings, Inc. reported quarterly net income of $35.7 million and diluted earnings per share (EPS) of $2.12 for the fourth quarter of 2025, compared to net income of $36.7 million and diluted EPS of $2.16 for the third quarter of 2025.
The Moline-based holding company and parent of Quad City Bank & Trust also reported a record annual 2025 net income of $127.2 million, or $7.49 per diluted share, and record adjusted net income of $129.6 million, or $7.64 per diluted share.
The multi-bank holding company also serves the Iowa markets of Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield, Missouri, through its wholly owned subsidiary banks.
“We delivered our strongest quarter and record full year results as we continue to see improved performance in our traditional banking, wealth management, and LIHTC (Low-Income Housing Tax Credit) lending businesses,” QCR Holdings President & CEO Todd Gipple said in a news release issued at the close of markets on Tuesday, Jan. 27.
“At the same time, we continued to invest in our digital transformation project, creating the bank of the future for our clients and our employees,” he added.
“Performance was very strong across all key operating metrics, approaching or exceeding the upper end of our guidance ranges for net interest margin expansion, gross loan growth, and capital markets revenue.”
Find QCR Holdings full earnings release here.
According to the report, QCR Holding’s adjusted net income and adjusted diluted EPS for the fourth quarter of 2025 were $37.3 million and $2.21, respectively, compared to $36.9 million and $2.17 for the third.
QCRH beats consensus
Those strong Q4 results for the company which trades as QCRH “easily beat Zack’s Consensus estimate of $95.95 million, representing a surprise of +11.54%,” the research company which provides market estimates for companies in the U.S. and Canada reported. Zack’s also noted “QCRH delivered an EPS surprise of +12.9%, with the consensus EPS estimate being $1.96.”
Overall QCR Holdings reported that net interest income for the fourth quarter of 2025 was $68.4 million, an increase of $3.6 million, or 22% annualized, from the third quarter of 2025. That was driven by contributions from net income margin (NIM) expansion and strong loan growth.
During the fourth quarter of 2025, the company also reported reducing term Federal Home Loan Bank (FHLB) borrowings by $135.0 million using proceeds from the LIHTC construction loan sale. The retired borrowings had a weighted average rate of 4.82% and this transaction will drive further NIM expansion.
“Our NIM TEY increased six basis points from the third quarter of 2025, near the upper end of our guidance range,” QCR Holdings Chief Financial Officer Nick Anderson said in the release “We expect ongoing margin expansion, and we are guiding to an increase in first quarter NIM TEY ranging from 3 to 7 basis points, assuming no further Federal Reserve rate cuts.”
Noninterest income for the fourth quarter of 2025 was $38.7 million, up 6% from $36.7 million in the third quarter of 2025. The company also generated $24.5 million of capital markets revenue in the fourth quarter of 2025 compared to $23.8 million in the prior quarter.
Wealth Management revenue totaled $5.3 million for the quarter, representing a 4% increase from the third quarter of 2025 and 11% for the year.
Strong housing lending
“During the fourth quarter of 2025, our LIHTC lending business continued to outperform, reflecting sustained strong demand for affordable housing and the expertise of our talented team,” Mr. Gipple added.
“Developers continued to successfully advance their projects despite earlier headwinds, underscoring the strength and sustainability of the affordable housing industry. Having operated in the LIHTC business for nearly a decade, we continue to view it as a highly durable, profitable, and differentiated growth engine for the company,” he said.
“Given the strength of our pipeline, we are increasing the upper end of our capital markets revenue guidance, resulting in a range of between $55 and $70 million over the next four quarters,” he added.
The company also continued its share repurchase activity during the fourth quarter. Total share repurchases during the quarter were 163,000 shares, returning $12.6 million of capital to shareholders. For the full year 2025, the company returned $21.6 million to shareholders through the repurchase of approximately 279,000 shares.
At the same time, Mr. Gipple said, “While our asset quality remains very strong and our criticized loans continue to decline to record low levels, we increased our provision at year-end to bolster our already strong level of ACL. This is consistent with our long-standing credit culture of maintaining robust reserves even during times when credit quality is favorable.”
