QCR Holdings, Inc. (NASDAQ: QCRH) announced fourth quarter 2025 net income of $35.7 million and record full-year net income of $127.2 million, driven by net interest income growth, strong capital markets revenue, and continued operational expansion. As of January 27, 2026, the company had a market capitalization of approximately $5.1 billion.
Market Capitalization
QCR Holdings had a market capitalization of approximately $5.1 billion USD as of January 27, 2026, based on the closing stock price and outstanding shares. The company is headquartered in Moline, Illinois, and operates a multi-bank holding company serving the Midwest through wholly owned subsidiary banks.
Fourth Quarter 2025 Results
QCR Holdings reported fourth quarter 2025 net income of $35.7 million, compared to net income of $36.7 million in the third quarter and $30.2 million in the fourth quarter of 2024. Adjusted net income for the fourth quarter totaled $37.3 million, compared to $36.9 million in Q3 2025 and $32.8 million in Q4 2024.
Full Year 2025 Results
For the full year 2025, QCR Holdings achieved record net income of $127.2 million, representing significant growth from prior year results. Adjusted net income reached a record $129.6 million. This performance reflects robust growth across all major operating segments, including traditional banking, wealth management, and low-income housing tax credit (LIHTC) lending.
Financial Performance Charts
Chart 1: Quarterly Net Income Trend
Chart 2: Three-Month Trading Volume Trend
Net Interest Income and Margin Expansion
Net interest income for the fourth quarter of 2025 totaled $68.4 million, representing a 22% annualized increase from the third quarter. Net interest margin on a tax-equivalent yield basis expanded six basis points to 3.57% in Q4 2025, compared to 3.51% in the prior quarter. During the fourth quarter, the company reduced term Federal Home Loan Bank (FHLB) borrowings by $135 million, utilizing proceeds from a $285.3 million low-income housing tax credit construction loan sale. Management expects net interest margin expansion of 3 to 7 basis points in the first quarter of 2026, assuming no further Federal Reserve rate cuts.
Capital Markets and Wealth Management Revenue
Noninterest income for the fourth quarter totaled $38.7 million, up 6% from $36.7 million in Q3 2025. Capital markets revenue reached $24.5 million in Q4 2025, compared to $23.8 million in the prior quarter. For full year 2025, capital markets revenue totaled $64.7 million. Wealth management revenue increased 4% to $5.3 million in Q4 2025 from $5.1 million in Q3 2025, and grew 11% for the full year.
Low-Income Housing Tax Credit Lending
The company’s LIHTC lending business continued to outperform during the fourth quarter, benefiting from sustained demand for affordable housing. In Q4 2025, QCR Holdings successfully sold $285.3 million of LIHTC construction loans at par to a third-party investor, a strategic move to expand capacity for permanent LIHTC lending and grow capital markets revenue. The sale proceeds were used to retire the company’s highest-cost FHLB advances. Management has increased the upper end of its capital markets revenue guidance for the next four quarters to a range of $55 to $70 million.
Loan Growth
Total loans grew $303.7 million, or 17% annualized, during the fourth quarter of 2025, excluding the impact of the construction loan sale and planned runoff of the m2 Equipment Finance portfolio. For the full year 2025, total loans grew $800.5 million, or 12%, after excluding similar items. Growth was driven by acceleration in both LIHTC and traditional lending businesses. Management expects first-quarter 2026 loan growth of 8% to 10%, with gross annualized loan growth accelerating to 10% to 15% over the final three quarters of 2026.
Deposit Growth and Mix Improvement
Total core deposits increased by $64.2 million, or 4% annualized, during Q4 2025, while average deposit balances increased $236.8 million, or 13% annualized. For the full year, core deposits increased $474.4 million, or 7%, and total deposits reached $7.4 billion as of December 31, 2025. The company reduced brokered deposits by $121.4 million during 2025, representing a 34% decline, with brokered deposits comprising only 3% of total deposits compared to 5% at year-end 2024.
Asset Quality
Total criticized loans decreased by $5.2 million on a linked-quarter basis, with the ratio of criticized loans to total loans improving to 1.94% as of December 31, 2025, the lowest level in more than five years. Nonperforming assets totaled $43.3 million, representing a ratio of 0.45% to total assets. The allowance for credit losses to total loans increased 2 basis points to 1.26% as of December 31, 2025. Net charge-offs totaled $4.2 million during Q4 2025, consistent with the prior quarter.
Capital Expansion and Share Repurchases
Tangible book value per share increased by $2.08, or 15% annualized, during Q4 2025, driven by strong earnings and improved accumulated other comprehensive income, partially offset by share repurchases. The tangible common equity to tangible assets ratio increased 27 basis points to 10.24%. Total risk-based capital ratio increased to 14.19% and the common equity tier 1 ratio rose to 10.52% as of December 31, 2025. During the quarter, the company repurchased approximately 163 thousand shares at an average price of $77.62, returning $12.6 million to shareholders. For the full year 2025, the company repurchased approximately 279 thousand shares for $21.6 million.
Operating Expenses
Noninterest expense for Q4 2025 totaled $62.9 million, compared to $56.6 million in Q3 2025 and $53.5 million in Q4 2024. The linked-quarter increase of $6.3 million was primarily due to a $2 million non-recurring loss associated with debt extinguishment and elevated variable compensation resulting from strong capital markets performance and record earnings. Higher professional and data processing expenses related to the company’s core system conversion as part of digital transformation also contributed to the increase. The adjusted efficiency ratio was 56.8% for Q4 2025 compared to 55.6% in Q3 2025. For full year 2025, adjusted noninterest expenses increased 4%, consistent with the company’s strategic goal of holding expense growth below 5%. Management expects first-quarter 2026 noninterest expenses of $55 to $58 million.
Outlook
Management expects first-quarter 2026 loan growth of 8% to 10%, with gross annualized loan growth accelerating to 10% to 15% over the final three quarters of 2026. Net interest margin TEY is expected to expand 3 to 7 basis points in Q1 2026, assuming no further Federal Reserve rate cuts. Capital markets revenue guidance has been increased, with management targeting $55 to $70 million over the next four quarters. Noninterest expense guidance for Q1 2026 ranges from $55 to $58 million, reflecting continued commitment to the company’s 9/6/5 strategic model, which targets noninterest expense growth below 5%.
Summary
QCR Holdings delivered record full-year 2025 net income of $127.2 million with strong earnings in the fourth quarter. Net interest income expansion, robust capital markets revenue, accelerating loan growth, and improved deposit mix supported results. The successful $285.3 million LIHTC construction loan sale positioned the company for expanded LIHTC lending. Asset quality remained excellent with criticized loans at record low levels. Capital ratios expanded and the company continued opportunistic share repurchases. Management projects continued operating leverage through its strategic initiatives and digital transformation investments.