QCR (QCRH) investor relations material

Executive summary

• Net income for Q2 2025 was $29.0 million, or $1.71 per diluted share, with adjusted net income at $29.4 million or $1.73 per share; EPS rose 13% sequentially, driven by net interest margin expansion, strong loan growth, and disciplined expense management.

• Tangible book value per share increased $1.64, a 13% annualized growth rate, and TCE/TA ratio improved to 9.92%.

• Capital markets revenue improved 51% sequentially, with a strong LITEK pipeline and normalization expected.

• Asset quality remains excellent, with net charge-offs tied to previously reserved credits and stable provision for credit losses; nonperforming assets declined $5.5 million (11%) sequentially.

• Wealth management and LITEK lending continue to be key growth drivers, supported by strong client relationships and market share.

Financial highlights

• Adjusted net income was $29M, or $1.73 per diluted share, for Q2; net interest income reached $62.1M, up $2M from Q1, with NIM (tax equivalent yield) up 4 bps to 3.46%.

• Noninterest income totaled $22.1M, including $9.9M–$10M in capital markets revenue, up 51% sequentially.

• Noninterest expense was $49.6M, up from Q1 but down 1% year-over-year; efficiency ratio improved to 58.9%.

• Total loans and leases held for investment grew by $102.6M to $6.9B; loan growth rebounded to an 8% annualized rate, excluding planned M2 equipment finance runoff.

• Tangible book value per share increased $1.64, a 13% annualized growth rate for the quarter.

Outlook and guidance

• Gross loan growth guidance for H2 2025 is 8%–10%.

• Capital markets revenue expected at $50M–$60M over the next four quarters; Q3 guidance is $13M–$16M.

• NIM guidance for Q3 is flat to up 4 bps, assuming no Fed rate cuts.

• Noninterest expense guidance for Q3 is $52M–$55M, reflecting digital transformation investments.

• Effective tax rate expected at 6%–8% for Q3; expected to increase in H2 2025 as revenue mix normalizes.