QCR Holdings Reports 32% Increase in Net Income for Third Quarter 2025

QCR Holdings, Inc. reported a strong financial performance for the third quarter of 2025, with net income reaching $36.7 million, a 32% increase from $27.8 million in the same period last year. This translates to diluted earnings per share of $2.16, up from $1.64 a year earlier. For the nine months ending September 30, 2025, the company recorded net income of $91.5 million, compared to $83.6 million for the same period in 2024. The increase in profitability was attributed to a rise in net interest income, which grew by 9% year-over-year, driven by higher average earning assets and improved yields.

The company’s total assets increased to $9.6 billion as of September 30, 2025, up from $9.0 billion at the end of 2024. This growth was primarily fueled by a 15% annualized increase in net loans and leases, which reached $7.1 billion. Deposits also saw a modest increase, rising to $7.4 billion, while borrowings surged by 39% to $706.8 million, reflecting the company's need for additional funding to support its loan growth. The allowance for credit losses on loans and leases stood at $88.8 million, representing 1.24% of total loans, indicating a stable credit quality despite the growth in the loan portfolio.

Strategically, QCR Holdings has focused on expanding its correspondent banking services, which now serve 189 banks across four states, contributing to a significant portion of its deposit base. The company also executed a securitization of $200.3 million in held-to-maturity municipal securities in August 2025, enhancing its liquidity position. Additionally, the company has been actively managing its interest rate risk through various derivative instruments, including interest rate swaps and swaptions, to stabilize its income amid fluctuating market conditions.

Looking ahead, QCR Holdings remains optimistic about its growth trajectory, aiming for continued loan and lease growth of 9% annually, while also targeting a 6% increase in fee-based income. The company has implemented a new share repurchase program, authorizing the buyback of up to 1.7 million shares, which reflects its commitment to returning value to shareholders. Management is focused on maintaining strong asset quality and managing liquidity effectively, as it navigates the evolving economic landscape.