QCR Holdings Reports Q2 2025 Financial Results with $29M Net Income

QCR Holdings, Inc. reported its financial results for the second quarter of 2025, revealing a net income of $29.0 million, or $1.71 per diluted share, compared to $29.1 million, or $1.72 per diluted share, in the same quarter of the previous year. For the first half of 2025, the company recorded a net income of $54.8 million, down from $55.8 million in the first half of 2024. The decrease in profitability was attributed to a decline in capital markets revenue, which fell significantly due to macroeconomic uncertainties. Despite this, net interest income increased by 11% year-over-year, driven by higher average earning assets and improved yields.

The company’s total assets grew to $9.24 billion as of June 30, 2025, up from $9.03 billion at the end of 2024. This growth was primarily fueled by an increase in net loans and leases, which rose to $6.84 billion, compared to $6.78 billion at the end of the previous fiscal year. Deposits also saw a modest increase, totaling $7.32 billion, reflecting a strategic focus on expanding the core deposit base. However, total borrowings increased by 18% to $509.4 million, indicating heightened funding needs due to strong loan and investment growth.

Operationally, QCR Holdings experienced a decline in noninterest income, which totaled $22.1 million for the second quarter, down 28% from the previous year. This decline was largely due to a significant drop in capital markets revenue, which decreased by 44% year-over-year. Conversely, trust fees and deposit service fees showed growth, increasing by 9.4% and 10.1%, respectively. The company also reported a decrease in noninterest expenses, which totaled $49.6 million for the quarter, a slight reduction from $49.9 million in the same period last year, primarily due to lower salaries and employee benefits.

Looking ahead, QCR Holdings remains focused on maintaining its capital position, with a tangible common equity to total assets ratio of 9.92% as of June 30, 2025. The company is also committed to improving its loan and lease growth, targeting an annual growth rate of 9%. Management anticipates that capital markets revenue will normalize over the next year as clients adapt to changing market conditions. The company continues to monitor its credit quality closely, with nonperforming assets decreasing by 11% during the quarter, reflecting effective management of its loan portfolio.