QCR (US:QCRH)2025-10-22 20:05Financial Performance - Record quarterly net income of $36.7 million, or $2.16 per diluted share, representing a 26% increase compared to the second quarter of 2025[1] - Adjusted net income for the third quarter of 2025 was $36.9 million, or $2.17 per diluted share, compared to $29.4 million and $1.73 for the second quarter of 2025[2] - Net income for the third quarter of 2025 was $36.714 million, up from $29.019 million in the second quarter[40] - For the nine months ended September 30, 2025, net income was $91.530 million, an increase from $83.625 million for the same period in 2024[43] - Adjusted net income (non-GAAP) for the quarter ended September 30, 2025, was $36,937,000, compared to $29,416,000 for the same quarter in 2024, representing a 25.6% increase[66] - Total adjusted income (non-GAAP) for the quarter was $36,714,000, compared to $29,019,000 in the previous quarter, representing a 26.5% increase[66] Revenue and Income Sources - Net interest income totaled $64.8 million, an increase of $2.7 million, or 18% annualized, from the second quarter of 2025[4] - Total noninterest income for the third quarter of 2025 was $36.651 million, significantly higher than $22.115 million in the previous quarter[40] - Capital markets revenue reached $23.8 million, up 141% on a linked-quarter basis[6] - Trust fees for the nine months ended September 30, 2025, were $10.625 million, up from $9.572 million in the previous year[43] - Noninterest income (GAAP) for the quarter was $36,651,000, significantly higher than $22,115,000 in the previous quarter, indicating a 65.8% increase[66] Asset and Loan Growth - Total loans and leases held for investment grew by $253.7 million to $7.2 billion, with annualized loan growth of 17%[14] - Loans/leases receivable held for investment rose to $7,177,464 thousand, an increase of 3.67% from $6,923,762 thousand in the prior quarter[36] - Total loans and leases for Quad City Bank and Trust reached $2,118,791 thousand, an increase from $2,032,168 thousand in the previous quarter, representing a growth of 4.3%[58] Deposits and Borrowings - Total core deposits increased by $99.0 million, or 6% annualized, from the second quarter of 2025[16] - Total deposits reached $7,380,068 thousand, showing a slight increase of 0.85% compared to $7,318,353 thousand in the previous quarter[36] - Total deposits for Quad City Bank and Trust rose to $2,407,371 thousand, compared to $2,309,942 thousand in the previous quarter, marking an increase of 4.2%[58] - Total borrowings increased significantly to $706,827 thousand, up from $509,359 thousand, marking a rise of 38.76%[36] Efficiency and Ratios - The efficiency ratio improved to 55.78%, the lowest in four years[12] - The efficiency ratio (Non-GAAP) improved to 55.78%, compared to 58.89% in the previous quarter[46] - The return on average assets (annualized) increased to 1.57%, up from 1.27% in the previous quarter[46] - Adjusted return on average assets (annualized) (non-GAAP) was 1.58%, up from 1.29% in the previous quarter, reflecting a significant improvement[66] Shareholder Returns - The Company repurchased 129,056 shares at an average price of $77.49 per share, returning $10.0 million to shareholders[26] - The Board authorized a new share repurchase program for up to 1.7 million shares, approximately 10% of outstanding shares as of September 30, 2025[26] Market Capitalization and Equity - As of September 30, 2025, the company reported a market capitalization of $1,273.69 million, an increase from $1,149.87 million as of June 30, 2025[46] - Total stockholders' equity grew to $1,086,915 thousand, an increase of 3.45% from $1,050,554 thousand in the prior quarter[36] - The company’s book value per common share increased to $64.55, up from $62.04 in the previous quarter[46] Risk Factors - The company highlighted ongoing risks including increased competition in the financial services sector and potential impacts from economic conditions and regulatory changes[33] Credit Quality - The allowance for credit losses remained stable at $88,770 thousand, consistent with the previous quarter's figure of $88,732 thousand[36] - Nonperforming assets as a percentage of total assets were 0.45% as of September 30, 2025, slightly down from 0.46% in the previous quarter[55] - Total criticized loans amounted to $144,069 thousand, a decrease from $149,661 thousand in the previous quarter[55] - The ACL on loans/leases held for investment as a percentage of loans/leases held for investment for Quad City Bank and Trust was 1.24% as of September 30, 2025, down from 1.32% in June 2025[58]