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1. Company Snapshot

1.a. Company Description

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services.Its deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits.The company also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies.


Its loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines.In addition, the company engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities.It serves the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, and Springfield communities.


The company was founded in 1993 and is headquartered in Moline, Illinois.

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1.b. Last Insights on QCRH

QCR Holdings, Inc.'s recent performance was positively driven by its Q3 2025 earnings beat, with quarterly earnings of $2.17 per share exceeding the Zacks Consensus Estimate of $1.73 per share. The company completed private placements of $70 million in subordinated notes, which will be used for general corporate purposes. Additionally, QCR Holdings announced a cash dividend of $0.06 per share, payable on January 7, 2026. KBRA assigned a rating of BBB- with a Stable Outlook to the subordinated notes. The company also selected Jack Henry to modernize technology infrastructure across its four subsidiary banks.

1.c. Company Highlights

2. QCR Holdings Posts Record Earnings with Strong NIM Expansion

QCR Holdings, Inc. reported record adjusted net income of $37 million or $2.21 per diluted share for the fourth quarter of 2025 and $130 million or $7.64 per diluted share for the full year. The company's performance was driven by significant growth in net interest income from increased average earning assets and net interest margin expansion. Net interest income increased $4 million or 22% annualized in Q4 and $23 million or 10% for the year. The net interest margin (NIM) expanded 6 basis points from the third quarter. The actual EPS of $2.21 beat estimates of $1.96, indicating a strong quarterly performance.

Publication Date: 08:30

📋 Highlights
  • Record Adjusted Net Income:: QCR reported $37M ($2.21/share) in Q4 2025 and $130M ($7.64/share) for the full year, driven by 22% annualized net interest income growth in Q4 and 10% for the year.
  • Net Interest Margin Expansion:: NIM increased 6 bps from Q3, supporting 9%–9.65% NII growth guidance for 2026, with $4M (22%) Q4 net interest income increase.
  • Capital Markets Guidance Raised:: Revenue guidance raised to $55M–$70M over next 4 quarters, with Q1 expected at $13M–$15M and full-year loan growth of 10%–15%.
  • Efficiency Ratio Improvement:: Adjusted core efficiency ratio at 56.8%, with guidance to reduce to low 50s by 2028, alongside 5% annual expense growth and $55M–$58M Q1 noninterest expenses.
  • Strong Asset Quality & ROA:: NPAs at 0.45% (half 20-year average), 10.24% tangible common equity ratio, and 1.50% ROA in recent quarters, with $13M in Q4 share repurchases.

Revenue Diversification and Growth Guidance

The company raised the upper end of its capital markets revenue guidance to a range of $55 million to $70 million over the next 4 quarters. Its Wealth Management business delivered $5 million in revenue for the fourth quarter, a 4% increase compared to the prior quarter, and grew $2 million or 11% for the full year. The company expects to sustain loan growth momentum, guiding to gross annualized growth in a range of 8% to 10% for the first quarter and 10% to 15% for the remainder of the year.

Operational Efficiency and Asset Quality

QCRH's adjusted core efficiency ratio came in at 56.8%, and it maintained strong discipline over core noninterest expenses, which were up only 4% for the year. Asset quality remains excellent, with net charge-offs static compared to the third quarter and total criticized loans decreasing $5 million in the quarter and $20 million for the full year. The non-performing assets (NPAs) to total assets ratio stood at 0.45%, approximately half of its 20-year historical average.

Valuation and Return Metrics

With a Price-to-Tangible Book Value (P/TBV) ratio of 1.39, the stock appears reasonably valued. The company's return on equity (ROE) of 11.91% indicates a strong ability to generate returns for shareholders. The Net Interest Margin (NIM) expansion and the company's guidance for NII growth close to 9% for the full year suggest a continued strong financial performance.

Growth Prospects and Capital Management

The company guides for positive operating leverage, targeting a 5% expense growth rate, and expects to improve their efficiency ratio from the mid-50s to the low 50s over time. QCRH remains opportunistic on buybacks, having spent $25 million on share repurchases at a weighted average price of $78. The tangible common equity to tangible assets ratio rose to 10.24%, and the common equity Tier 1 ratio increased to 10.52%, indicating a strong capital position.

3. NewsRoom

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QCR Holdings, Inc. Announces Increased Cash Dividend of $0.10 Per Share

Feb -19

Source: globenewswire.com

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QCR (NASDAQ:QCRH) Reaches New 12-Month High After Strong Earnings

Jan -29

Source: defenseworld.net

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QCR Holdings, Inc. (QCRH) Q4 2025 Earnings Call Transcript

Jan -28

Source: seekingalpha.com

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Here's What Key Metrics Tell Us About QCR Holdings (QCRH) Q4 Earnings

Jan -28

Source: zacks.com

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QCR Holdings (QCRH) Beats Q4 Earnings and Revenue Estimates

Jan -27

Source: zacks.com

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

Jan -27

Source: globenewswire.com

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Head to Head Analysis: QCR (NASDAQ:QCRH) and Independent Bank (NASDAQ:IBCP)

Jan -11

Source: defenseworld.net

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QCR Holdings, Inc. to Report Fourth Quarter and Fiscal Year 2025 Financial Results

Jan -06

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.79%)

6. Segments

Commercial Banking - Cedar Rapids Bank and Trust

Expected Growth: 6%

Cedar Rapids Bank and Trust's 6% growth is driven by strong loan demand, fueled by a robust Iowa economy and low unemployment. Additionally, the bank's focus on commercial and industrial lending, as well as its expansion into new markets, have contributed to its growth. Furthermore, the bank's efficient operations and solid asset quality have enabled it to maintain a strong net interest margin, supporting its growth momentum.

Commercial Banking - Quad City Bank and Trust

Expected Growth: 6%

Strong loan growth driven by commercial and industrial lending, increased deposits from commercial clients, and expansion into new markets. Effective cost management and improved operating efficiency also contributed to growth. Additionally, strategic investments in digital banking and customer relationship management systems enhanced customer experience and drove business development.

Intercompany Eliminations

Expected Growth: 0%

Intercompany eliminations from QCR Holdings, Inc. with 0% growth indicates no significant transactions between subsidiaries, suggesting a lack of synergies or internal reorganization. This could be due to a decentralized business model, minimal cross-selling, or a focus on standalone operations. As a result, there is no need for eliminations, and the company's financials are not affected by intercompany transactions.

All Other

Expected Growth: 5%

All Other segment of QCR Holdings, Inc. exhibits 5% growth driven by increasing demand for wealth management services, expansion of insurance product offerings, and strategic partnerships. Additionally, the segment benefits from rising interest income, improved operational efficiency, and effective cost management. These factors contribute to the segment's robust growth, positioning it for continued success.

Commercial Banking - Guaranty Bank

Expected Growth: 6%

Guaranty Bank's 6% growth is driven by strong loan growth, fueled by a robust commercial lending pipeline and expansion into new markets. Additionally, the bank's focus on digital transformation and customer experience has led to increased deposit growth and improved operational efficiency. Furthermore, strategic cost management and a favorable interest rate environment have contributed to the bank's growth momentum.

Commercial Banking - Community State Bank

Expected Growth: 6%

Strong loan growth driven by commercial and industrial lending, increased deposits from small business and municipal clients, and expansion into new markets. Additionally, strategic acquisitions and investments in digital banking capabilities have enhanced customer experience and improved operational efficiency, contributing to the 6% growth of Commercial Banking - Community State Bank from QCR Holdings, Inc.

7. Detailed Products

ATM Services

QCR Holdings, Inc. provides ATM services, offering a range of solutions for financial institutions, including ATM deployment, management, and maintenance.

Branch and IT Services

The company offers branch and IT services, including IT infrastructure management, help desk support, and network services, to financial institutions.

Digital Banking Services

QCR Holdings, Inc. provides digital banking services, including online banking, mobile banking, and bill pay services, to financial institutions.

Item Processing Services

The company offers item processing services, including check processing, statement rendering, and document imaging, to financial institutions.

Risk Management Services

QCR Holdings, Inc. provides risk management services, including fraud detection, compliance services, and risk assessments, to financial institutions.

8. QCR Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

QCR Holdings, Inc. operates in the financial services industry, which has a moderate threat of substitutes. While there are alternative financial institutions, QCR Holdings' diverse range of services and strong customer relationships mitigate the threat of substitutes.

Bargaining Power Of Customers

QCR Holdings, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong relationships with customers and its ability to provide customized services reduce the likelihood of customers switching to competitors.

Bargaining Power Of Suppliers

QCR Holdings, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position and long-term relationships with suppliers also mitigate the bargaining power of suppliers.

Threat Of New Entrants

The financial services industry has high barriers to entry, including regulatory requirements and capital requirements. Additionally, QCR Holdings, Inc.'s established brand and strong customer relationships make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. QCR Holdings, Inc. faces intense competition from larger banks and financial institutions, which can impact its market share and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.77%
Debt Cost 5.09%
Equity Weight 55.23%
Equity Cost 8.81%
WACC 7.15%
Leverage 81.06%

11. Quality Control: QCR Holdings, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
United Bancorp

A-Score: 6.0/10

Value: 4.4

Growth: 4.9

Quality: 4.4

Yield: 10.0

Momentum: 5.5

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
South Plains Financial

A-Score: 5.9/10

Value: 6.5

Growth: 5.8

Quality: 6.6

Yield: 4.0

Momentum: 5.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Investar Holding

A-Score: 5.8/10

Value: 6.3

Growth: 5.9

Quality: 5.9

Yield: 4.0

Momentum: 6.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Enterprise Bancorp

A-Score: 5.7/10

Value: 6.4

Growth: 5.3

Quality: 6.7

Yield: 3.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

View Full Report
Stock-Card
QCR Holdings

A-Score: 5.6/10

Value: 6.5

Growth: 8.3

Quality: 7.4

Yield: 0.0

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Customers Bancorp

A-Score: 5.0/10

Value: 6.4

Growth: 6.9

Quality: 4.3

Yield: 0.0

Momentum: 7.5

Volatility: 5.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

93.1$

Current Price

93.1$

Potential

-0.00%

Expected Cash-Flows