QCR Holdings, Inc. Announces Fourth Quarter Results and Record Net Income for the Full Year 2025

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]