QCR (US:QCRH)2026-01-27 21:05Financial 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].