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Jun 30
QCR Holdings Q2 2025 Earnings Report
QCR Holdings reported strong second quarter 2025 results with increased net income and diluted EPS, driven by net interest income growth, margin expansion, and improved capital markets revenue.
Key Takeaways
QCR Holdings, Inc. announced a net income of $29.0 million, or $1.71 per diluted share, for the second quarter of 2025. This represents a significant increase from the previous quarter, primarily due to expanded net interest margin, strong loan growth, and improved capital markets revenue, alongside disciplined expense management. The company also saw an improvement in its tangible common equity to tangible assets ratio and a decline in nonperforming assets.
Net income for Q2 2025 was $29.0 million, or $1.71 per diluted share, an increase from $25.8 million and $1.52 per diluted share in Q1 2025.
Net Interest Margin (NIM) on a tax-equivalent yield (TEY) basis expanded by four basis points to 3.46% in Q2 2025.
Capital markets revenue grew by 51% on a linked-quarter basis, reaching $9.9 million.
Nonperforming assets declined by $5.5 million, or 11%, and the tangible common equity to tangible assets ratio improved to 9.92%.
QCR Holdings
QCR Holdings
QCR Holdings Revenue by Segment
Revenue by Segment
Wealth Management Revenue
CapyFin.comCapital Markets Revenue
CapyFin.com Forward Guidance
QCR Holdings anticipates continued margin expansion and solid loan growth for the remainder of the year, with capital markets revenue expected to return to normalized levels.
Positive Outlook
- Anticipates continued NIM TEY expansion, guiding to an increase in Q3 2025 in a range from static to an increase of four basis points.
- Reaffirmed guidance for Capital Markets revenue to be in a range of $50 million to $60 million for the next four quarters.
- Expects capital markets revenue for Q3 2025 to be fully back to a more normalized level, in a range of $13 million to $16 million.
- Guiding to gross loan growth in a range of 8% to 10% in the second half of the year.
- Noninterest expense for Q3 2025 is expected to be in the range of $52 million to $55 million, which includes costs for digital transformation and assumes capital markets revenue and loan growth are within guidance.
Challenges Ahead
- Anticipated margin expansion assumes no Federal Reserve rate cuts.
- Increased noninterest expense in Q2 2025 compared to Q1 2025 due to higher variable compensation and digital transformation costs.
- Total deposits declined slightly by $19.0 million, or 1% annualized, from the first quarter.
- Total criticized loans increased by $9.3 million on a linked-quarter basis, and the ratio of criticized loans to total loans and leases increased to 2.16%.
- Net charge-offs increased by $2.1 million from the prior quarter, primarily due to the charge-off of previously fully reserved loans.