Financial Performance - Fourth quarter 2025 net income was $35.7 million, or $2.12 per diluted share, compared to $36.7 million and $2.16 in the previous quarter[2]. - Adjusted net income for Q4 2025 was $37.3 million, or $2.21 per diluted share, up from $36.9 million and $2.17 in Q3 2025, and $32.8 million and $1.93 in Q4 2024[3]. - The company reported a significant increase in revenue, with a year-over-year growth of 15% to $150 million[39]. - Net income for the quarter was $35,664,000, compared to $36,714,000 in the previous quarter, indicating a slight decrease of 2.9%[43]. - Net income for the year was $127,194,000, an increase of 11.5% compared to $113,850,000 in 2024[46]. - Basic EPS for the year was $7.54, up from $6.77 in the previous year, reflecting a growth of 11.4%[46]. Income and Revenue Growth - Noninterest income for Q4 2025 was $38.7 million, a 6% increase from Q3 2025, with capital markets revenue at $24.5 million[9]. - Total noninterest income for the quarter was $38,665,000, up from $36,651,000 in the prior quarter, reflecting a growth of approximately 5.5%[43]. - Total noninterest income for the year was $114,323,000, a decrease of 1.0% from $115,529,000 in the previous year[46]. - Capital markets revenue for the year was $64,698,000, down from $71,057,000 in the previous year, indicating a decline of approximately 9.5%[46]. Asset and Loan Growth - Total loans grew by $303.7 million, or 17% annualized, in Q4 2025, with full-year loan growth at $800.5 million, or 12%[13]. - Total assets increased to $9,575,470 thousand as of December 31, 2025, compared to $9,568,302 thousand as of September 30, 2025, reflecting a growth of 0.07%[40]. - Net loans/leases stood at $7,076,828 thousand, slightly decreasing from $7,090,151 thousand in the prior quarter, a decline of 0.19%[40]. - LIHTC loan balances within the loan/lease portfolio were $2.4 billion as of December 31, 2025[40]. Deposits and Funding - Core deposits increased by $64.2 million, or 4% annualized, in Q4 2025, with total deposits reaching $7.4 billion, a 5% increase year-over-year[19]. - Total deposits rose to $7,414,198 thousand, up from $7,380,068 thousand in the previous quarter, marking an increase of 0.46%[40]. - Total borrowings decreased to $638,541 thousand from $706,827 thousand, a decline of 9.66%[40]. Efficiency and Cost Management - The adjusted efficiency ratio for Q4 2025 was 56.8%, compared to 55.6% in the prior quarter, with noninterest expenses totaling $62.9 million[15][17]. - The efficiency ratio (Non-GAAP) was 58.73%, an increase from 55.78% in the prior quarter[48]. - The management highlighted a focus on improving operational efficiency, aiming for a 5% reduction in costs by the end of the year[39]. Capital and Liquidity - The total risk-based capital ratio increased to 14.19% as of December 31, 2025, reflecting solid earnings growth and the LIHTC construction loan sale[25]. - There is a commitment to maintaining a strong liquidity position, with a target of keeping cash reserves above $50 million[39]. - Stockholders' equity (GAAP) for QCR Holdings, Inc. was $1,112,311 as of December 31, 2025, compared to $1,086,915 as of September 30, 2025[65]. Market and Strategic Outlook - The company provided an optimistic outlook, projecting a revenue growth of 10-12% for the next quarter[39]. - New product launches are expected to contribute an additional $30 million in revenue over the next fiscal year[39]. - Market expansion efforts are underway, targeting a 25% increase in market share in the Southeast region[39]. - The company is considering strategic acquisitions to enhance its service offerings and customer base[39]. - The company is investing $5 million in research and development for new technologies, including AI integration[39]. Economic Factors and Monitoring - The company is closely monitoring economic factors that could impact performance, including inflation and interest rates[35].

Financial Performance - The company reported quarterly net income of $35.7 million and diluted EPS of $2.12 for Q4 2025, a slight decrease from $36.7 million and $2.16 in Q3 2025 [2][4] - Adjusted net income for Q4 2025 was $37.3 million with adjusted diluted EPS of $2.21, compared to $36.9 million and $2.17 in Q3 2025, and $32.8 million and $1.93 in Q4 2024 [3][4] - For the full year 2025, the company achieved record 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 [15] Net Interest Income and Margin - Net interest income for Q4 2025 was $68.4 million, reflecting a $3.6 million increase or 22% annualized growth from Q3 2025, driven by net interest margin (NIM) expansion and strong loan growth [6][15] - NIM for Q4 2025 was 3.06%, with a tax-equivalent yield (TEY) of 3.57%, up from 3.00% and 3.51% in the previous quarter [6][8] - The company expects ongoing margin expansion, guiding for an increase in first quarter NIM TEY of 3 to 7 basis points [8] Loan Growth and LIHTC Lending - Total loans grew by $303.7 million, or 17% annualized, in Q4 2025, excluding the impact of a construction loan sale and planned runoff of the m2 portfolio [14][16] - The company successfully sold $285.3 million of LIHTC construction loans, which will enhance capacity for permanent LIHTC lending and further grow capital markets revenue [13][16] - The LIHTC lending business continues to outperform, driven by strong demand for affordable housing [10] Noninterest Income - Noninterest income for Q4 2025 was $38.7 million, a 6% increase from $36.7 million in Q3 2025, with capital markets revenue of $24.5 million [9][15] - Wealth management revenue totaled $5.3 million for the quarter, representing a 4% increase from Q3 2025 and an 11% increase for the year [9] Expenses and Efficiency - Noninterest expenses for Q4 2025 totaled $62.9 million, up from $56.6 million in Q3 2025, primarily due to a non-recurring loss from debt extinguishment and increased variable compensation [17][18] - The adjusted efficiency ratio for Q4 was 56.8%, compared to 55.6% in the prior period [18] Deposit Growth - Total core deposits increased by $64.2 million, or 4% annualized, from Q3 2025, with average deposit balances rising by $236.8 million, or 13% annualized [20] - For the full year, core deposits grew by $474.4 million, or 7%, with a stable deposit mix and a significant reduction in brokered deposits [20][21] Asset Quality - Total criticized loans decreased by $5.2 million, with the criticized loans to total loans ratio improving to 1.94% [22] - Nonperforming assets totaled $43.3 million, with a static NPA to total assets ratio of 0.45% [23] Capital and Shareholder Returns - Tangible book value (TBV) per share increased by $2.08, or 15% annualized, in Q4 2025 [26] - The company repurchased approximately 163,000 shares for $12.6 million in Q4 2025, totaling $21.6 million for the full year [29][30]

Core Viewpoint - QCR Holdings, Inc. will release its fourth quarter and fiscal year financial results for 2025 on January 27, 2026, with a conference call scheduled for January 28, 2026, to discuss these results [1]. Group 1: Financial Results Announcement - The financial results for the fourth quarter and fiscal year ended December 31, 2025, will be released after market close on January 27, 2026 [1]. - A conference call and webcast will take place on January 28, 2026, at 10:00 a.m. Central Time to discuss the financial results [1]. Group 2: Teleconference Details - Dial-in information for the teleconference includes 888-346-9286 for domestic calls and 412-317-5253 for international calls [2]. - The teleconference will be archived and available for replay until February 4, 2026, with access information provided [2]. Group 3: Webcast Information - A webcast of the teleconference can be accessed on the Company's News and Events page at www.qcrh.com, with an archived version available shortly after the live event [3]. Group 4: Company Overview - QCR Holdings, Inc. is a multi-bank holding company based in Moline, Illinois, serving various communities through its subsidiary banks [4]. - The Company operates 36 locations across Iowa, Missouri, and Illinois, providing full-service commercial and consumer banking, as well as trust and wealth management services [4]. - As of September 30, 2025, QCR Holdings had $9.6 billion in assets, $7.2 billion in loans, and $7.4 billion in deposits [4].

Financial Performance - Net income for the three months ended September 30, 2025, was $36,714 thousand, a 32% increase from $27,785 thousand in the same period of 2024[14]. - Basic earnings per common share increased to $2.17 for the three months ended September 30, 2025, compared to $1.65 for the same period in 2024, reflecting a growth of 31%[14]. - Net income for the nine months ended September 30, 2025, was $91,530,000, an increase from $83,625,000 in 2024, representing a growth of approximately 10.8%[19]. - The company reported record net income of $36.7 million and diluted EPS of $2.16 for Q3 2025, compared to $29.0 million and $1.71 in Q2 2025, and $27.8 million and $1.64 in Q3 2024[118]. Income and Revenue - Net interest income for the three months ended September 30, 2025, was $64,799 thousand, an increase of 8% compared to $59,722 thousand for the same period in 2024[14]. - Total interest and dividend income for the year 2025 reached $361,935,000, slightly up from $360,215,000 in 2024, indicating a marginal increase of 0.5%[16]. - Total noninterest income rose to $36,651 thousand for the three months ended September 30, 2025, up 35% from $27,157 thousand in the same period of 2024[14]. - Capital markets revenue for Q3 2025 was $23,832,000, significantly higher than $16,290,000 in Q3 2024, showing an increase of approximately 46.8%[104]. Assets and Liabilities - Total assets increased to $9,568,302 thousand as of September 30, 2025, up from $9,026,030 thousand at December 31, 2024, representing a growth of 6%[12]. - Total liabilities increased to $8,481,387 thousand as of September 30, 2025, up from $8,028,643 thousand at December 31, 2024, representing a rise of 6%[12]. - The company reported a total stockholders' equity of $1,086,915 thousand as of September 30, 2025, compared to $997,387 thousand at December 31, 2024, indicating an increase of 9%[12]. Credit Losses and Provisions - Provision for credit losses increased to $4,305 thousand for the three months ended September 30, 2025, compared to $3,484 thousand in the same period of 2024, reflecting a rise of 23%[14]. - The provision for credit losses for the nine months ended September 30, 2025, was $12,582,000, down from $11,949,000 in the same period of 2024[105]. - The allowance for credit losses (ACL) for loans/leases at the end of September 2025 was $88.77 million, reflecting a provision of $4.23 million for the quarter[215]. Deposits and Cash Flow - Total deposits increased to $7,380,068 thousand as of September 30, 2025, compared to $7,061,187 thousand at December 31, 2024, marking a growth of 5%[12]. - The company reported a net increase in deposit accounts of $318,881,000 in 2025, compared to an increase of $470,628,000 in 2024, a decline of approximately 32.2%[19]. - Net cash provided by operating activities decreased to $86,133,000 in 2025 from $267,208,000 in 2024, indicating a decline of about 67.7%[19]. Securities and Investments - The fair value of available-for-sale (AFS) securities was $271,349 thousand as of September 30, 2025, down from $281,109 thousand as of December 31, 2024[31]. - The total unrealized losses for AFS municipal securities were $42,367 thousand as of September 30, 2025[35]. - The investment portfolio included 680 securities, with 518 in an unrealized loss position, representing approximately 13.3% of the total amortized cost of the portfolio[35]. Risk Management and Derivatives - The Company has entered into interest rate swaps totaling a notional amount of $114.31 million to hedge against rising rates, with a fair value of $(360) thousand as of September 30, 2025[76]. - The Company has implemented interest rate collars with a total notional amount of $150 million, with a fair value loss of $240,000 as of September 30, 2025[77]. - The Company manages credit risk by entering into interest rate derivatives only with highly rated counterparties and employs collateral agreements to mitigate default risk[79]. Tax and Regulatory Compliance - The effective tax rate for the first nine months of 2025 was 6%, down from 7% in the same period of 2024, primarily due to new state tax credit investments[90]. - The Company met all capital adequacy requirements as of September 30, 2025, according to regulatory guidelines[107]. - The Tier 1 risk-based capital was $1,039,242 thousand with a ratio of 10.85%, above the required 6.00%[108]. Operational Highlights - The Company authorized a new share repurchase program for up to 1,700,000 shares, approximately 10% of outstanding shares as of September 30, 2025[112]. - The Company continues to focus on growing its core deposit portfolio and shifting the mix from higher-cost deposits to lower-cost core deposits[231]. - The Company aims to grow fee-based income by at least 6% annually, but reported a fee income growth of -16.9% year-to-date as of September 30, 2025[124][126].

Core Insights - QCR Holdings, Inc. has selected Jack Henry to modernize its technology infrastructure and standardize operations across its four subsidiary banks, aiming for a data-driven growth strategy [1][3]. Company Overview - QCR Holdings, Inc. is a $9 billion financial services company with four community-focused banks operating in Iowa, Illinois, and Missouri, providing commercial, retail, and wealth management services [2]. Technology Transition - QCR Holdings is transitioning all four banks to Jack Henry's modern core processing platform, which will enhance technology foundations while maintaining each bank's autonomy [3]. - The integration of products like Enterprise Workflow and Synergy is expected to streamline operations and improve efficiency [3]. Strategic Alignment - The partnership with Jack Henry is seen as crucial for enhancing client and employee experiences, improving efficiency, and reducing costs while preserving the banks' independence [4]. - Jack Henry's Data Hub will provide real-time data access and facilitate efficient system integrations, supporting QCR Holdings' growth plans [4]. Future Growth Potential - QCR Holdings aims for sustainable growth beyond its near-term goal of $10 billion in assets, with Jack Henry's technology aligning with its future innovation strategy [4]. - The focus is on enhancing client relationships while maintaining the personal service that characterizes their community banking approach [4].

Group 1 - The article does not provide any specific content related to a company or industry [1]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Financial Data and Key Metrics Changes - The company achieved record quarterly adjusted net income of $37 million, or $2.17 per diluted share, reflecting strong performance across core businesses [19] - Earnings per share grew by 26% compared to the second quarter [4] - Net interest income increased by $3 million, or 18% annualized, supported by net interest margin expansion and exceptional loan growth [19] - Non-interest income totaled $37 million for the third quarter, driven primarily by $24 million in capital markets revenue [22] - The efficiency ratio improved to 55.8%, the lowest in four years [23] Business Line Data and Key Metrics Changes - Capital markets revenue rebounded to $24 million, up $14 million from the prior quarter [19] - Wealth management revenue surpassed $5 million, an 8% increase over the prior quarter, with year-over-year growth of 15% annualized [22][8] - Total loans grew by $254 million, or 15% annualized, with an increase of $286 million, or 17% annualized, when accounting for planned runoff from M2 Equipment Finance loans [24][25] Market Data and Key Metrics Changes - Core deposits increased by $410 million, or 8% annualized, reflecting strong deposit growth across markets [25] - The company added 1,500 new accounts year to date, indicating robust customer acquisition [90] Company Strategy and Development Direction - The company is focused on a digital transformation strategy, aiming to enhance operational efficiency and customer service through technology upgrades [7] - LIHTC lending is viewed as a durable and profitable business, with strong demand for affordable housing and new developer relationships being established [9][10] - The company is targeting gross annualized loan growth in a range of 10% to 15% for the fourth quarter [6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustaining momentum in loan growth and capital markets revenue, with a solid pipeline ahead [6] - The company anticipates continued core margin expansion and is guiding for an increase in fourth quarter NIM TEY ranging from three to seven basis points [21] - Management noted that asset quality remains excellent, with total criticized loans decreasing by 9% year to date [26] Other Important Information - The board approved a new share repurchase program, authorizing the repurchase of up to 1.7 million shares of outstanding common stock [17] - The effective tax rate for the quarter was 9.5%, up from 5% in the prior quarter, primarily due to higher pre-tax income [30] Q&A Session Summary Question: Margin guidance and rate cuts - The margin guidance for Q4 is three to seven basis points of expansion, not including any rate cuts [36] - For each 25 basis points cut, an additional 2 to 3 basis points of margin increase is expected [37] Question: Future buybacks - The company plans to remain active in share repurchases due to higher earnings per share and reduced need to retain capital for organic growth [38][39] Question: Securitization appetite and timing - A large permanent loan securitization is anticipated in the first half of next year, targeting around $350 million [46] Question: Loan growth expectations for next year - The company expects loan growth to remain in the double digits, with a more accurate forecast to be provided in January [57] Question: Impact of digital transformation on expenses - One-time costs related to conversions are included in the projected non-interest expense guidance for Q4, with expected savings from these conversions in the future [63][70]

Financial Data and Key Metrics Changes - The company achieved record quarterly adjusted net income of $37 million, or $2.17 per diluted share, reflecting strong performance across core businesses [19] - Earnings per share grew by 26% compared to the second quarter [4] - Net interest income increased by $3 million, or 18% annualized, supported by net interest margin expansion and exceptional loan growth [19] - Non-interest income totaled $37 million for the third quarter, driven primarily by $24 million in capital markets revenue [22] - The efficiency ratio improved to 55.8%, the lowest in four years [23] Business Line Data and Key Metrics Changes - Capital markets revenue rebounded to $24 million, up $14 million from the prior quarter [19] - Wealth management revenue surpassed $5 million, an 8% increase over the prior quarter, with year-over-year growth of 15% annualized [22][8] - Total loans grew by $254 million, or 15% annualized, with a planned runoff from M2 Equipment Finance loans and leases factored in [24] - LIHTC lending business showed exceptional performance, with strong demand for affordable housing and new relationships established with 10 experienced developers [9][10] Market Data and Key Metrics Changes - Core deposits increased by $410 million, or 8% annualized year-to-date [25] - Total criticized loans decreased by 9% year-to-date, reflecting improved asset quality [16] - The company reported a decline in net charge-offs and total NPAs to total asset ratio, which decreased to 0.45% [26] Company Strategy and Development Direction - The company is focused on a digital transformation strategy, aiming to enhance efficiency and reduce long-term operating costs [7] - The multi-charter community banking model is designed to capture market share from competitors [6] - The company anticipates continued progress in LIHTC lending and capital markets revenue, with guidance for capital markets revenue increased to a range of $55 million-$65 million over the next four quarters [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustaining loan growth momentum, guiding for gross annualized loan growth in a range of 10%-15% for the fourth quarter [6] - The company remains well-positioned to benefit from future rate reductions, with expectations of NIM accretion for every 25 basis point cut in rates [20] - Management highlighted the importance of maintaining strong regulatory capital while being opportunistic with share repurchases [17] Other Important Information - The company returned $10 million of capital to shareholders through share repurchases [16] - A new share repurchase program was approved, authorizing the repurchase of up to 1.7 million shares [17] - The effective tax rate for the quarter was 9.5%, up from 5% in the prior quarter, primarily due to higher pre-tax income [30] Q&A Session Summary Question: Margin guidance and rate cuts - Management confirmed that the margin guidance of 3-7 basis points of expansion does not include any rate cuts, and each 25 basis point cut could lead to an additional 2-3 basis point increase in margin [36][37] Question: Future buybacks - Management indicated that they will remain active in share repurchases due to higher earnings per share and reduced need to retain capital for organic growth [38][39] Question: Securitization appetite and timing - Management anticipates a large permanent loan securitization in the first half of next year, aiming for a larger inventory to enhance profitability [46] Question: Loan growth expectations for next year - Management expects loan growth to remain in the double digits, with a more accurate forecast to be provided in January [56] Question: One-time costs related to conversions - Management indicated that one-time costs related to conversions are included in the fourth quarter expense guidance, with expectations for savings from these conversions in the future [63][70] Question: Reserves trend - Management does not expect the allowance for credit losses to drop significantly, as recent reductions have been due to resolving NPAs and charge-offs from the M2 Equipment Finance portfolio [72] Question: Capital capacity for buybacks - Management stated that they have capacity for buybacks while balancing other capital needs, emphasizing opportunistic repurchases at attractive valuations [94]

Financial Data and Key Metrics Changes - The company achieved record quarterly adjusted net income of $37 million, or $2.17 per diluted share, reflecting strong performance across core businesses [20] - Earnings per share grew by 26% compared to the second quarter [4] - Net interest income increased by $3 million, or 18% annualized, supported by net interest margin (NIM) expansion and exceptional loan growth [20] - NIM on a tax-equivalent yield basis increased by five basis points from the second quarter [20] - Non-interest income totaled $37 million for the third quarter, driven primarily by capital markets revenue [24] Business Line Data and Key Metrics Changes - Capital markets revenue rebounded to $24 million, up $14 million from the prior quarter [20] - Wealth management revenue surpassed $5 million, an 8% increase over the prior quarter, with year-over-year growth of 15% annualized [24][9] - Loan growth accelerated significantly, increasing by $286 million, or 17% annualized, with a 15% increase net of planned runoff from M2 Equipment Finance loans and leases [5][26] Market Data and Key Metrics Changes - Core deposits grew at an annual rate of 6% for the quarter, totaling $410 million, or 8% annualized year to date [6][27] - Total criticized loans improved during the quarter, decreasing 9% year to date [18] - Total provision for credit losses was $4 million, slightly up from the previous quarter, due to loan growth partially offset by improved credit quality [28] Company Strategy and Development Direction - The company operates through three primary lines of business: traditional banking, wealth management, and LIHTC lending platform, all of which delivered improved performance [6] - The digital transformation initiative is on track, with key milestones achieved, including the successful conversion of the core operating system for the first charter [8] - The company is increasing guidance for capital markets revenue to a range of $55 million to $65 million over the next four quarters [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustaining loan growth momentum, guiding for gross annualized loan growth in a range of 10% to 15% for the fourth quarter [6] - The company remains committed to maintaining strong regulatory capital while assessing its capital structure to support growth objectives [31] - Management noted that the demand for affordable housing remains high, positioning the LIHTC lending business for growth [10] Other Important Information - The company returned $10 million of capital to shareholders through share repurchases [18] - A new share repurchase program was approved, authorizing the repurchase of up to 1.7 million shares of outstanding common stock [19] - The effective tax rate for the quarter was 9.5%, up from 5% in the prior quarter, primarily due to higher pre-tax income [32] Q&A Session Summary Question: Margin guidance and rate cuts - Management confirmed that the margin guidance of three to seven basis points of expansion does not include any rate cuts, and each 25 basis point cut could see an additional 2 to 3 basis point increase [35][36] Question: Future buybacks - Management indicated that they will remain active in buybacks due to higher earnings per share and reduced need to retain capital for organic growth [36] Question: Securitization appetite and timing - Management anticipates a large permanent loan securitization in the first half of next year, targeting around $350 million [41] Question: NII impact from loan sales and securitizations - Management stated that any give-up in net interest income (NII) from loan sales would likely be replaced by improved capital markets revenue [45] Question: Loan growth expectations for next year - Management expects loan growth to continue in the double digits, with a more accurate guide to be provided in January [50] Question: One-time costs related to conversions - Management indicated that there will be $4 to $5 million of NII expense in 2025 related to conversions, expected to decrease in subsequent years [58] Question: Reserves trend - Management does not expect the allowance for credit losses to drop significantly, as recent reductions have been due to resolving non-performing assets [61]