0001104659-26-021531
SEC filingQCR Holdings, Inc. reported net income of $127.2 million for fiscal year 2025, an increase from $113.9 million in 2024. The company's net interest income grew to $255.2 million from $231.8 million the prior year, driven by total interest and dividend income of $489.4 million, partially offset by interest expense of $234.2 million. Noninterest income was $114.3 million, while noninterest expense totaled $215.6 million. The provision for credit losses was $18.1 million. The company ended the year with total assets of $9.58 billion, total deposits of $7.41 billion, and stockholders' equity of $1.11 billion. Operating cash flow was strong at $421.5 million, though net cash used in investing activities was $854.7 million primarily due to loan growth and securities purchases. The company maintained solid capital ratios, with a total risk-based capital ratio of 14.19%.
QCR Holdings, Inc. reported solid financial performance for fiscal year 2025, with net income increasing to $127.2 million from $113.9 million in 2024. This 11.7% year-over-year growth was driven by higher net interest income, which rose to $255.2 million from $231.8 million. Total interest and dividend income reached $489.4 million, while interest expense was $234.2 million. The provision for credit losses was $18.1 million, slightly higher than the $17.1 million in 2024. Noninterest income totaled $114.3 million, with capital markets revenue contributing $64.7 million. Noninterest expense was $215.6 million, with salaries and employee benefits being the largest component at $127.1 million. The company's effective tax rate was 6.4% for 2025.
The company's revenue is primarily derived from net interest income, which represents the difference between interest earned on loans/leases and securities and interest paid on deposits and borrowings. For 2025, interest income from loans/leases was $419.3 million ($304.5M taxable, $114.8M nontaxable), while securities contributed $60.8 million ($19.2M taxable, $41.6M nontaxable). Noninterest income sources included capital markets revenue ($64.7M), trust fees ($14.4M), deposit service fees ($8.7M), and debit card fees ($6.4M). The company operates through four banking subsidiaries serving different geographic markets: QCBT (Quad Cities), CRBT (Cedar Rapids/Waterloo), CSB (Des Moines), and GB (Springfield/Joplin).
The company's net interest margin improved as net interest income grew by 10.1% year-over-year. The provision for credit losses of $18.1 million represented 0.25% of gross loans/leases receivable of $7.17 billion. Noninterest expense as a percentage of total revenue (net interest income plus noninterest income) was approximately 58.3%. Salaries and employee benefits accounted for 58.9% of total noninterest expense. The company's efficiency ratio (noninterest expense divided by total revenue) was approximately 58.3%. Basic earnings per share increased to $7.54 from $6.77 in 2024, while diluted EPS rose to $7.49 from $6.71.
Operating cash flow was strong at $421.5 million, driven by net income of $127.2 million and adjustments including provision for credit losses ($18.1M) and proceeds on sales of loans ($375.1M). Investing activities used $854.7 million primarily for net increase in loans/leases originated and held for investment ($685.7M), purchases of securities ($235.0M), and purchase of premises and equipment ($67.4M). Financing activities provided $417.9 million, mainly from net increase in deposit accounts ($353.0M). The balance sheet shows total assets of $9.58 billion, with loans/leases receivable (net) of $7.08 billion and securities of $1.31 billion. Total deposits were $7.41 billion, with 12.8% noninterest-bearing. Stockholders' equity was $1.11 billion, with a tangible common equity ratio of approximately 10.2%.
The company's strategic developments included the decision in September 2024 to discontinue offering new loans and leases through its m2 subsidiary, allowing the portfolio to run off. The company continues to focus on its core banking operations through its four subsidiary banks. Risk factors noted in the filing include exposure to economic and competitive conditions, particularly changes in interest rates, government policies, and regulatory actions. The company's lending activities are concentrated in the Midwest, with the largest industry concentration being lessors of residential buildings (42% of total loans/leases). Management monitors credit quality through established underwriting standards, risk rating systems, and concentration limits. The company maintains regulatory capital ratios well above minimum requirements for being well capitalized.