QCR HOLDINGS INC
For the period ended Jun 30, 2025. Filed Aug 8, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 8, 2025
QCRH$100.85-0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-09.
0001558370-25-007110
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsIntroductionGeneralCritical Accounting Policies and Critical Accounting EstimatesExecutive OverviewStrategic Financial MetricsStrategic DevelopmentsGAAP to Non-GAAP ReconciliationsNet Interest Income - (Tax Equivalent Basis)Current report: 10-Q
Period ended 2025-06-30; filed 2025-08-08.
0001558370-25-010884
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsIntroductionGeneralCritical Accounting Policies and Critical Accounting EstimatesExecutive OverviewStrategic Financial MetricsStrategic DevelopmentsGAAP to Non-GAAP ReconciliationsNet Interest Income - (Tax Equivalent Basis)The baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 44 previous paragraphs and 43 current paragraphs.
35 unchanged; 7 reworded; 1 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 40 previous and 48 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (1)
Current report
compared to the second quarter of 2024. The decrease was primarily due to lower loan growth and a decrease in criticized loans. Provision expense in the first six months of 2025 decreased $188 thousand compared to the first six months of 2024. The decrease was due to a decrease in criticized loans. See the “Provision for Credit Losses” section of this report for additional details.
Removed paragraphs (2)
Previous report
revenue in the first quarter of 2025 was affected by macroeconomic and governmental uncertainty. Despite this, demand for affordable housing remains strong. The reduced activity in the first quarter of 2025 should create a larger backlog for future transactions as the Company’s capital markets activity for the second quarter of 2025 is normalizing as clients adjust to the current environment. The demand for low-income housing remains healthy and the economics associated with these tax credit projects continue to be favorable. The Company has a strong pipeline for this business and expects it to continue to be a solid source of fee income in 2025. Noninterest income in the first quarter of 2025 decreased $10.0 million, or 37%, compared to the first quarter of 2024 driven primarily by a decrease in capital markets revenue.
Previous report
correspondent banking continued to be a core line of business for the Company. By comparison, the Company acted as the correspondent bank for 183 downstream banks with total noninterest bearing deposits of $89.4 million and total interest-bearing deposits of $754.2 million as of March 31, 2024. The Company is competitively positioned with experienced staff, software systems and processes to continue growing in the four states currently served – Iowa, Wisconsin, Missouri and Illinois. This line of business provides a strong source of deposits, fee income, high-quality loan participations and bank stock loans. The Company also manages off-balance sheet liquidity held at the Federal Reserve on behalf of the downstream banks of $537.9 million as of March 31, 2025, as compared to $407.4 million as of March 31, 2024.
Reworded paragraphs (7)
Previous wording
This section reviews the financial condition and results of operations of the Company and its subsidiaries as of and for the three months ending March 31, 2025. Some tables may include additional periods to comply with disclosure requirements or to illustrate trends. When reading this discussion, also refer to the Consolidated Financial Statements and related notes in this report. Page locations and specific sections and notes that are referred to in this discussion are listed in the table of contents.
Current wording
This section reviews the financial condition and results of operations of the Company and its subsidiaries as of and for the three and six months ending June 30, 2025. Some tables may include additional periods to comply with disclosure requirements or to illustrate trends. When reading this discussion, also refer to the Consolidated Financial Statements and related notes in this report. Page locations and specific sections and notes that are referred to in this discussion are listed in the table of contents.
Previous wording
The Company was formed in February 1993 for the purpose of organizing QCBT. Over the past 32 years, the Company has grown to include four banking subsidiaries and a number of nonbanking subsidiaries. As of March 31, 2025, the Company had $9.2 billion in consolidated assets, including $6.7 billion in net loans/leases, and $7.3 billion in deposits. The financial results of acquired entities for the periods since their acquisition are included in this report. Further information related to acquired entities has been presented in the annual reports previously filed with the SEC corresponding to the year of each acquisition.
Current wording
The Company was formed in February 1993 for the purpose of organizing QCBT. Over the past 32 years, the Company has grown to include four banking subsidiaries and a number of nonbanking subsidiaries. As of June 30, 2025, the Company had $9.3 billion in consolidated assets, including $6.8 billion in net loans/leases, and $7.3 billion in deposits. The financial results of acquired entities for the periods since their acquisition are included in this report. Further information related to acquired entities has been presented in the annual reports previously filed with the SEC corresponding to the year of each acquisition.
Previous wording
The Company reported net income of $25.8 million and diluted EPS of $1.52 for the quarter ended March 31, 2025. By comparison, for the quarter ended December 31, 2024, the Company reported net income of $30.2 million and diluted EPS of $1.77. For the quarter ended March 31, 2024, the Company reported net income of $26.7 million, and diluted EPS of $1.58.
Current wording
The Company reported net income of $29.0 million and diluted EPS of $1.71 for the quarter ended June 30, 2025. By comparison, for the quarter ended March 31, 2025, the Company reported net income of $25.8 million and diluted EPS of $1.52. For the quarter ended June 30, 2024, the Company reported net income of $29.1 million, and diluted EPS of $1.72. For the six months ended June 30, 2025, the Company reported net income of $54.8 million and diluted EPS of $3.22. By comparison, for the six months ended June 30, 2024 the Company reported net income of $55.8 million and diluted EPS of $3.30.
Previous wording
The first quarter of 2025 was also highlighted by the following results and events (see section titled “GAAP to Non-GAAP Reconciliations” for additional information):
Current wording
The second quarter of 2025 was also highlighted by the following results and events (see section titled “GAAP to Non-GAAP Reconciliations” for additional information):
Previous wording
The Company reported adjusted net income (non-GAAP) of $26.0 million, with adjusted diluted EPS (non-GAAP) of $1.53 for the three months ended March 31, 2025. See section titled “GAAP to Non-GAAP Reconciliations” for additional information. Adjusted net income (non-GAAP) for the three months ended March 31, 2025 excludes a number of non-core or non-recurring items, after-tax, as set forth in the GAAP to Non-GAAP Reconciliation section.
Current wording
The Company reported adjusted net income (non-GAAP) of $29.4 million, with adjusted diluted EPS (non-GAAP) of $1.73 for the three months ended June 30, 2025. See section titled “GAAP to Non-GAAP Reconciliations” for additional information. The Company reported adjusted net income (non-GAAP) of $55.4 million, with adjusted diluted EPS (non-GAAP) of $3.26 for the six months ended June 30, 2025. See section titled “GAAP to Non-GAAP Reconciliations” for additional information. Adjusted net income (non-GAAP) for the three and six months ended June 30, 2025 excludes a number of non-core or non-recurring items, after-tax, as set forth in the GAAP to Non-GAAP Reconciliation section.
Previous wording
The Company has taken the following actions during the first quarter of 2025 to support its corporate strategy and further the strategic financial metrics shown above:
Current wording
The Company has taken the following actions during the second quarter of 2025 to support its corporate strategy and further the strategic financial metrics shown above:
Previous wording
Net interest income, on a GAAP basis, increased 10% for the quarter ended March 31, 2025, compared to the same quarter of the prior year. Net interest income, on a tax equivalent basis (non-GAAP), increased 10% for the quarter ended March 31, 2025, compared to the same quarter of the prior year. Net interest income changed primarily due to the Company’s loan and investment growth and continued expansion of loan and investment yields, which were partially offset by deposit growth with a lower cost of funds.
Current wording
Net interest income, on a GAAP basis, increased 3% for the quarter ended June 30, 2025, compared to the same quarter of the prior year. Net interest income, on a tax equivalent basis (non-GAAP) increased 11% for the quarter ended June 30, 2025, compared to the same quarter of the prior year. Net interest income, on a GAAP basis, increased 10% for the six months ended June 30, 2025, compared to the same period of the prior year. Net interest income, on a tax equivalent basis (non-GAAP), increased 11% for the six months ended June 30, 2025, compared to the same period of the prior year. Net interest income changed primarily due to the Company’s loan and investment growth and continued expansion of loan and investment yields, which were partially offset by deposit growth with a lower cost of funds.