QCR Holdings, Inc., the parent company of Quad City Bank & Trust (QCBT), announced net income of $29 million and diluted earnings per share of $1.71 for the second quarter.
In its earnings release Wednesday, July 23, the Moline-based holding company said the results compare to a net income of $25.8 million, and diluted EPS of $1.52, for the first quarter of 2025. The second quarter is the period ended June 30, 2025.
Adjusted net income and adjusted diluted EPS for the 2025 second quarter were $29.4 million and $1.73, respectively. That compared to $26 million and $1.53 respectively for the first quarter of 2025; and $29.3 million, and $1.73 respectively for the second quarter of 2024.
“We delivered strong second quarter results highlighted by a significant increase in net interest income from the previous quarter, driven by both net interest margin expansion and strong loan growth, as well as improved capital markets revenue, and disciplined noninterest expense management,” Todd Gipple, QCR’s president and CEO, said in a news release.
In May at the company’s annual meeting, Mr. Gipple was approved as the successor for Larry Helling, who retired as CEO of both the holding company and Cedar Rapids Bank & Trust (CRBT).
The two banks, QCBT and CRBT, were the initial banks launched by QCR, which today serves the Quad Cities; the Iowa markets of Cedar Rapids, Cedar Valley and Des Moines/Ankeny; as well as Springfield, Missouri.
Net interest income growth
Net interest income for the second quarter totaled $62.1 million, an increase of $2.1 million, or 14% annualized, from the first quarter of 2025. The results, QCR said, were driven by strong earning asset growth, expanded yield on loans and investments, and lower cost of funds.
Net interest margin (NIM) was 2.97% and NIM on a tax-equivalent yield (TEY) basis was 3.46% for the second quarter.
“Our NIM TEY increased four basis points from the first quarter of 2025, which was at the top of our guidance range,” Chief Financial Officer Nick Anderson said in the release.
Noninterest income for the second quarter was $22.1 million, up from $16.9 million in the previous quarter.
The company also generated $9.9 million of capital markets revenue in the second quarter of 2025 compared to $6.5 million in the first quarter. Wealth management revenue totaled $4.6 million, a slight decline from the first quarter. Compared to second quarter 2024, capital markets revenue increased $332,000, or 8%, and rose 23% year-to-date compared to the same period in 2024.
Mr. Gipple said the company “saw improved low-income housing tax credit (LIHTC) lending activity compared to the first quarter as clients adjusted to the current environment.” The increased activity drove 51% growth in the capital markets revenue.
In addition, he said the company is reaffirming its guidance for Capital Markets revenue to be in a range of $50 million to $60 million for the next four quarters.
Expense management
Noninterest expense for the 2025 second quarter totaled $49.6 million compared to $46.5 million for the first quarter of 2025 and $49.9 million for the same period a year ago. Its professional and data processing expenses also increased due to the company’s digital transformation.
“We held noninterest expense under the low end of our guidance range of $50 (million) to $53 million, highlighting our expense flexibility,” Mr. Anderson added.
QCR also posted strong loan growth in the second quarter with total loans and leases held for investment growing by $102.6 million to $6.9 billion
“We continue to be optimistic about solid loan growth for the remainder of the year and are guiding to gross loan growth in a range of 8% to 10% in the second half of the year,” Mr. Gipple said.
In the report, he also said “following the robust deposit growth of $276.2 million, or 16% annualized, in first quarter, the majority of those balances were retained throughout the second quarter.”
Total deposits declined slightly by $19 million, or 1% annualized from the first quarter, while average deposit balances increased $72 million. Year-to-date core deposits have increased by $311 million, or 9% annualized.
Now based at 3551 Seventh St., Moline, in the former Velie Mansion, QCR broke ground in May on its new headquarters and banking branch in northeast Bettendorf near The Plex area. The new 100,000-square-foot facility is expected to be completed by late 2026.
