Second Quarter 2026 Highlights
- Net income of $36.3 million, or $2.19 diluted earnings per share (“EPS”), representing a 28% year-over-year increase in diluted EPS
- Strong return on average assets of 1.51%
- Significant capital markets revenue from low-income housing tax credit (“LIHTC”) production increased 69% year-over-year to $16.7 million
- Wealth Management assets under management increased 9% and revenue increased 7% on a linked-quarter basis
- Enhanced operating leverage, reflected in a 310-basis point improvement in the efficiency ratio1 to 54.6%
- Robust gross loan growth of 12% annualized, excluding securitization, loan sale, and m2 Equipment Finance (“m2”) portfolio runoff
- Successful execution of $443.6 million in LIHTC loan offtake transactions
- Asset quality improved with criticized loans to total loans at the lowest level since the fourth quarter of 2019
- Tangible book value (“TBV”) per share1 growth of $2.17, or 15% annualized on a linked-quarter basis
- Opportunistic share repurchases of 149,639 shares at an average price of $90.01 per share
MOLINE, Ill., July 22, 2026 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $36.3 million and diluted EPS of $2.19 for the second quarter of 2026, compared to net income of $33.4 million and diluted EPS of $1.99 for the first quarter of 2026, and $29.0 million and $1.71 for the second quarter of 2025.
For the Quarter Ended June 30, March 31, June 30,$ in millions (except per share data)2026 2026 2025Net Income$36.3 $33.4 $29.0Diluted EPS$2.19 $1.99 $1.71Adjusted Net Income1$36.3 $33.4 $29.4Adjusted Diluted EPS1$2.19 $1.99 $1.73
“We delivered strong net income and record GAAP EPS for the second quarter, demonstrating the ongoing momentum across our franchise. Adjusted EPS1 also remained near record levels, exceeded only by the fourth quarter of 2025. These results were supported by substantial loan production, a rebound in capital markets revenue, higher net interest income despite significant LIHTC loan sales, and strong contributions from our wealth management business. Noninterest expenses also outperformed our guidance. Together, these results produced meaningful operating leverage and demonstrated the strength of our diversified business model,” said Todd Gipple, President and Chief Executive Officer.
“We also made important progress on several strategic priorities during the quarter, improving asset quality to the strongest levels in nearly seven years, completing our second core conversion, executing LIHTC offtake transactions that advanced our asset and capital-light strategy, and returning $13.5 million to shareholders through opportunistic share repurchases,” said Mr. Gipple.
Robust Loan Growth
In the second quarter of 2026, total loans grew $216.9 million, or 12% annualized, excluding LIHTC loan offtake transactions and the planned runoff of the m2 portfolio. The Company executed $443.6 million of LIHTC loan offtake transactions during the quarter, consisting of a Freddie Mac permanent loan securitization and a construction loan portfolio sale.
“We delivered strong loan growth fueled by solid production across both our LIHTC and traditional lending businesses, in line with our guidance. Our 7% annualized traditional loan growth, excluding the planned m2 portfolio runoff, reflects robust local client demand and continued strength across our markets,” said Mr. Gipple.
“With very strong pipelines and a healthy outlook for future originations, we expect increased lending activity to fully offset the near-term impact of LIHTC offtake transactions on net interest income. Over time, these transactions will allow us to expand our capital markets revenue opportunities. Accordingly, we are reaffirming our gross loan growth guidance of 10% to 15% annualized for the final two quarters of 2026,” said Mr. Gipple.
Significant Capital Markets and Wealth Management Revenue Growth
Noninterest income for the second quarter of 2026 was $29.4 million, up from $23.0 million in the first quarter of 2026. The Company generated $16.7 million of capital markets revenue from LIHTC loan production in the second quarter of 2026, representing a linked-quarter increase of 56% and a year-over-year increase of 69%. Capital markets revenue growth was partially offset by a $1.3 million loss from the Freddie Mac LIHTC securitization. Wealth management revenue totaled $5.8 million for the quarter, representing a 7% increase from the first quarter of 2026, reflecting strong market performance and continued new relationship and AUM growth.
“Our wealth management business continues to perform at a high level, delivering 7% revenue growth and 9% AUM growth during the quarter. We believe our investments in this business position us well to sustain this momentum and capture additional growth opportunities,” said Mr. Gipple.
“As expected, capital markets revenue increased sharply from a seasonally slower first quarter, supported by growth in our LIHTC lending platform. These results reflect the continued robust demand for affordable housing and the strength of our experienced team. We continue to create new relationships with some of the best LIHTC developers in the country while expanding our relationships with existing clients. We remain particularly excited about the momentum in our LIHTC business, as the outlook in this segment remains very strong, supported by an outstanding pipeline and favorable affordable housing fundamentals. As a result, we are reaffirming our guidance of $60 million to $70 million of capital markets revenue over the next four quarters,” said Mr. Gipple.
“As noted in prior quarters, Freddie Mac has significantly increased the complexity of its M-Series securitization program since our earlier transactions. While the underlying securities priced better than expected, higher transaction costs under the revised program drove the loss on this securitization. We are pursuing alternative loan sale structures for our permanent LIHTC loans that we believe will be less complex, faster to execute, and more economically attractive. These structures are also expected to allow for a complete sale of the underlying loans without retaining the first-loss B-Tranche, removing the loans from risk-based assets and more effectively freeing regulatory capital. We are targeting early 2027 for our first transaction under this revised structure,” said Mr. Gipple.
Strong Earning Asset Growth Offsets Impact of LIHTC Loan Sales
Net interest income for the second quarter of 2026 was $67.9 million, an increase of $0.5 million, or 3% annualized, from the first quarter of 2026. Average earning assets increased $46.3 million during the quarter, more than offsetting the impact of LIHTC offtake transactions and driving higher interest income.
Net interest margin (“NIM”) was 3.10% and NIM on a tax-equivalent yield (“TEY”) basis1 was 3.55% for the second quarter, as compared to 3.13% and 3.58%, respectively for the prior quarter. Continued progress in lowering interest-bearing and time deposit costs, along with the accretive impact of the LIHTC offtake transactions, was more than offset by a shift toward higher-cost wholesale funding and lower loan yields. The majority of the reduction in loan yields was driven by lower nonaccrual interest recoveries and reduced loan discount accretion.
“Our NIM TEY1 declined 3 basis points from the first quarter of 2026 and came in below our guidance range,” said Nick Anderson, Chief Financial Officer. “After early quarter pressure, NIM improved and stabilized in May and June, with June exceeding the quarterly average by 1 basis point. We continued to maintain deposit pricing discipline in a competitive environment, driving a further decline in our cost of deposits during the quarter. While lower loan discount accretion and nonaccrual interest recoveries pressured our loan yield, significant earning asset growth helped support net interest income as we executed on our LIHTC offtake transactions.”
“We are encouraged by the strength of our lending pipeline and consistent loan demand, which continue to support profitable growth opportunities across our footprint. Combined with our disciplined approach to deposit costs, this positive momentum supports our guidance for a relatively static third quarter NIM TEY1, assuming no Federal Reserve rate changes,” said Mr. Anderson.
Core Deposits Normalize Following Exceptional First Quarter
Total core deposit activity in the second quarter of 2026 normalized from the exceptional first quarter performance, decreasing $323.8 million. The decline primarily reflected the Company’s intentional reduction of higher-cost correspondent and public fund balances, supported by liquidity generated from LIHTC offtake transactions and a steady increase in noninterest bearing deposits. Year-to-date, core deposits have increased $85 million, or 2% annualized.
The Company’s total deposits at the end of the second quarter were $7.4 billion, a decrease of 4.5% from the first quarter and includes a further reduction in non-core brokered deposits to just 2% of total deposits. “We remain focused on growing core deposits, optimizing our funding mix, and maintaining disciplined deposit pricing in a competitive environment. We also delivered our third consecutive quarter of noninterest bearing deposit growth, reflecting continued progress on a key strategic priority for our Company,” said Mr. Anderson.
Efficient Expense Structure Drives Operating Leverage
Noninterest expense for the second quarter of 2026 totaled $53.2 million, compared to $52.1 million for the first quarter of 2026. The $1.0 million linked-quarter increase primarily reflected higher salary and benefits associated with increased capital markets activity, as well as higher professional and data processing expense, related to the core conversion completed during the quarter. The increase in salary and benefits expense was partially offset by an $825 thousand linked-quarter decline in stock-based compensation expense, as most of this expense is recognized in the first quarter, and by higher deferred loan origination costs associated with strong loan growth.
“Stronger capital markets production drove higher variable compensation with digital transformation costs also contributing to the linked-quarter increase in noninterest expense. Even with these increases, expenses remained below our guided range, reflecting disciplined expense management and improving operating leverage,” said Mr. Anderson.
For the third quarter of 2026, the Company is lowering its noninterest expense guidance to be in the range of $54 million to $57 million, assuming capital markets revenue and loan growth are within the guidance ranges and includes the Company’s continued investments in digital transformation initiatives. “This outlook reflects our approach to expense management under our 9/6/5 strategic model, which is designed to keep annual noninterest expense growth below 5%, driving operating leverage, improving efficiency, and enhancing profitability,” added Mr. Anderson.
Continued Strong Asset Quality
Nonperforming assets (“NPAs”) totaled $39.5 million at the end of the second quarter of 2026, a decrease of $3.4 million from the prior quarter, which resulted in the NPA to total assets ratio improving by 4 basis points to 0.41%. The ratio of criticized loans to total loans and leases also improved to 1.91%, the lowest level since the fourth quarter of 2019.
The Company recorded a total provision for credit losses of $4.7 million during the second quarter, compared to $2.5 million in the first quarter, reflecting loan growth in the current quarter and the prior quarter’s benefit from a reversal of credit loss expense related to loans transferred to held for sale. Net charge-offs were $3.3 million during the second quarter of 2026, a decline of $0.6 million from the prior quarter, as the Company continues to benefit from the positive trends in charge-off activity from the winddown of the m2 portfolio. The allowance for credit losses to total loans held for investment declined by 2 basis points from the prior quarter, to 1.24%.
Earnings Growth Drives TBV Per Share1 Expansion
The Company’s TBV per share¹ increased by $2.17, or 15% annualized, during the second quarter of 2026. This growth was driven by strong earnings during the quarter partially offset by share repurchases.
As of June 30, 2026, the tangible common equity to tangible assets ratio¹ increased 40 basis points to 10.71%, the common equity tier 1 ratio increased 14 basis points to 10.68%, and the total risk-based capital ratio increased 13 basis points to 14.13%. These quarterly changes reflect the combined impact of strong earnings, loan sales, and share repurchases during the quarter. By comparison, these ratios were 10.31%, 10.54%, and 14.00%, respectively, as of March 31, 2026.
Continued Opportunistic Share Repurchases
The Company continued share repurchases during the second quarter consistent with capital allocation priorities, returning approximately $13.5 million of capital to shareholders at an attractive multiple relative to tangible book value¹. Since the Company began repurchasing shares in 2025, it has purchased over 675 thousand shares, approximately 4% of total shares outstanding, returning $55.9 million of capital to shareholders. The share repurchase program authorized in October 2025 enhances the Company’s capital allocation flexibility and allows for organic growth, shareholder returns, and capital strength while reinforcing confidence in the Company’s long-term outlook.
Conference Call Details
The Company will host an earnings call/webcast tomorrow, July 23, 2026, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through July 30, 2026. The replay access information is 855-669-9658 (international 412-317-0088); access code 5347347. A webcast of the teleconference can be accessed on the Company’s News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.
About Us
QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, and Guaranty Bank, based in Springfield, Missouri, was acquired by the Company in 2018. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. The Company has 35 locations in Iowa, Missouri, and Illinois. As of June 30, 2026, the Company had $9.5 billion in assets, $7.0 billion in loans and $7.4 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.
Endnotes
1Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.
Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company’s management and on information currently available to management, are generally identifiable by the use of words such as “believe,” “expect,” “anticipate,” “bode”, “predict,” “suggest,” “project”, “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.
Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by forward-looking statements. A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, but are not limited to: (i) the strength of the local, state, national and international economies and financial markets, including effects of inflationary pressures, the threat or implementation of tariffs, immigration enforcement and changes in foreign policy; (ii) effects on the U.S. economy resulting from actions taken by federal and local governments, including changes in local, state and federal laws and regulations, the threat or implementation of tariffs, immigration enforcement and changes in foreign policy; (iii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, military conflicts, acts of war or threats thereof (including the Russian invasion of Ukraine ongoing conflicts in the Middle East, and other adverse external events that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control, and the response of the local, state and national governments to any such adverse external events; (iv) new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB, the Securities and Exchange Commission (the “SEC”) or the PCAOB; (v) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company’s commercial borrowers; (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions, private credit firms, fintech companies, and digital asset service providers and the inability to attract new customers; (vii) rapid technological changes implemented by us and our third-party vendors, including the development and implementation of tools incorporating artificial intelligence; (viii) unexpected results of acquisitions, including failure to realize the anticipated benefits of the acquisitions and the possibility that transaction and integration costs may be greater than anticipated; (ix) the loss of key executives and employees, talent shortages and employee turnover; (x) changes in consumer spending; (xi) unexpected outcomes and costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (xii) the economic impact on the Company and its customers of climate change, natural disasters and exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (xiv) credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio and large loans to certain borrowers (including CRE loans); (xv) the overall health of the local and national real estate market; (xvi) the ability to maintain an adequate level of allowance for credit losses on loans; (xvii) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure; (xviii) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds; (xix) the level of non-performing assets on our balance sheet; (xx) interruptions involving our information technology and communications systems or third-party servicers; (xxi) the occurrence of fraudulent activity, breaches or failures of the Company’s or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxii) emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or customers; (xxiii) changes in the interest rates and repayment rates of the Company’s assets; (xxiv) the effectiveness of the Company’s risk management framework; and (xxv) the ability of the Company to manage the risks associated with the foregoing. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the SEC.
Contact:
Doug Neumann
VP, Investor Relations
(309) 743-7753
[email protected]
Consolidated Financial Highlights
(Unaudited) As of June 30, March 31, December 31, September 30, June 30, 2026
2026
2025
2025
2025
(dollars in thousands)CONDENSED BALANCE SHEET Cash and due from banks $111,342 $80,038 $76,494 $77,581 $104,769 Federal funds sold and interest-bearing deposits 80,408 39,290 76,399 84,738 90,120 Securities, net of allowance for credit losses 1,401,408 1,324,750 1,312,310 1,308,689 1,263,452 Loans receivable held for sale (1) 3,731 524,931 1,429 1,457 1,162 Loans/leases receivable held for investment 7,029,199 6,760,569 7,165,526 7,177,464 6,923,762 Allowance for credit losses (87,185) (85,459) (90,127) (88,770) (88,732)Intangibles 7,068 7,574 8,080 9,077 9,738 Goodwill 138,595 138,595 138,595 138,595 138,595 Derivatives 211,178 209,836 188,409 202,703 178,002 Other assets 624,899 613,571 621,079 576,401 558,899 Total assets $9,520,643 $9,613,695 $9,498,194 $9,487,935 $9,179,767 Total deposits $7,417,334 $7,770,850 $7,414,198 $7,380,068 $7,318,353 Total borrowings 660,315 418,257 638,541 706,827 509,359 Derivatives 131,921 149,836 137,051 150,375 146,941 Other liabilities 161,316 152,288 196,093 163,750 154,560 Total stockholders’ equity 1,149,757 1,122,464 1,112,311 1,086,915 1,050,554 Total liabilities and stockholders’ equity $9,520,643 $9,613,695 $9,498,194 $9,487,935 $9,179,767 ANALYSIS OF LOAN PORTFOLIO Loan/lease mix: (2) Commercial and industrial - revolving $407,419 $376,284 $384,656 $386,674 $380,029 Commercial and industrial - other 1,080,335 1,059,148 1,094,064 1,107,896 1,180,859 Commercial and industrial - other - LIHTC 129,578 237,125 224,802 222,772 194,830 Total commercial and industrial 1,617,332 1,672,557 1,703,522 1,717,342 1,755,718 Commercial real estate, owner occupied 589,928 588,098 577,352 586,578 593,675 Commercial real estate, non-owner occupied 966,873 1,000,673 1,036,655 1,053,732 1,036,049 Construction and land development 630,909 608,039 566,891 515,787 454,022 Construction and land development - LIHTC 574,644 693,591 741,531 1,028,978 1,075,000 Multi-family 359,993 355,349 340,080 316,353 301,432 Multi-family - LIHTC 1,511,247 1,582,573 1,429,251 1,187,243 950,331 Direct financing leases 6,382 7,947 9,533 11,090 12,880 1-4 family real estate 613,664 618,973 603,683 599,838 592,253 Consumer 161,958 157,700 158,457 161,980 153,564 Total loans/leases $7,032,930 $7,285,500 $7,166,955 $7,178,921 $6,924,924 Less allowance for credit losses 87,185 85,459 90,127 88,770 88,732 Net loans/leases $6,945,745 $7,200,041 $7,076,828 $7,090,151 $6,836,192 ANALYSIS OF SECURITIES PORTFOLIO Securities mix: U.S. government sponsored agency securities $13,928 $15,059 $16,024 $14,208 $14,267 Municipal securities 1,126,055 1,081,102 1,081,274 1,085,669 1,033,642 Residential mortgage-backed and related securities 88,515 86,222 68,855 57,108 58,864 Asset backed securities 3,769 4,076 4,439 4,918 6,684 Other securities 53,456 55,845 58,143 63,824 67,358 Trading securities (3) 115,967 82,728 83,857 83,225 82,900 Total securities $1,401,690 $1,325,032 $1,312,592 $1,308,952 $1,263,715 Less allowance for credit losses 282 282 282 263 263 Net securities $1,401,408 $1,324,750 $1,312,310 $1,308,689 $1,263,452 ANALYSIS OF DEPOSITS Deposit mix: Noninterest-bearing demand deposits $1,022,346 $982,696 $945,513 $931,774 $952,032 Interest-bearing demand deposits 5,399,818 5,634,742 5,196,438 5,176,364 5,087,783 Time deposits 840,346 968,914 1,035,317 1,004,980 974,341 Brokered deposits 154,824 184,498 236,930 266,950 304,197 Total deposits $7,417,334 $7,770,850 $7,414,198 $7,380,068 $7,318,353 ANALYSIS OF BORROWINGS Borrowings mix: Term FHLB advances $10,609 $10,609 $10,383 $145,383 $145,383 Overnight FHLB advances 258,000 15,000 235,000 145,000 80,000 Other borrowings 99,430 107,457 107,395 130,609 — Other short-term borrowings 8,907 1,950 2,650 2,850 1,350 Subordinated notes 234,312 234,217 234,122 234,027 233,701 Junior subordinated debentures 49,057 49,024 48,991 48,958 48,925 Total borrowings $660,315 $418,257 $638,541 $706,827 $509,359
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(1)There were no loans identified for LIHTC securitization or LIHTC loan sales as of June 30, 2026, $522.9 million identified and included in LHFS at March 31, 2026, and none as of December 31, 2025, September 30, 2025, or June 30, 2025.(2)Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.3 billion at June 30, 2026.(3)Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company.Consolidated Financial Highlights
(Unaudited) For the Quarter Ended June 30, March 31, December 31, September 30, June 30, 2026
2026
2025 2025 2025 (dollars in thousands, except per share data)INCOME STATEMENT Interest income $121,027 $120,091 $127,491 $125,015 $120,247Interest expense 53,111 52,653 59,137 60,216 58,165Net interest income 67,916 67,438 68,354 64,799 62,082Provision for credit losses 4,708 2,454 5,499 4,305 4,043Net interest income after provision for credit losses $63,208 $64,984 $62,855 $60,494 $58,039 Trust fees (1) $4,281 $3,894 $3,749 $3,544 $3,395Investment advisory and management fees (1) 1,551 1,539 1,504 1,488 1,254Deposit service fees 2,115 1,973 2,092 2,231 2,187Gains on sales of residential real estate loans, net 507 614 666 529 556Capital markets revenue 15,392 10,701 24,481 23,832 9,869Earnings on bank-owned life insurance 1,025 931 888 952 998Debit card fees 1,752 1,659 1,640 1,648 1,648Correspondent banking fees 747 693 699 664 699Loan related fee income 1,066 950 930 846 1,096Fair value gain (loss) on derivatives and trading securities 802 (869) 800 324 230Other 189 867 1,216 593 183Total noninterest income $29,427 $22,952 $38,665 $36,651 $22,115 Salaries and employee benefits $32,120 $31,389 $36,898 $34,338 $28,474Occupancy and equipment expense 7,342 7,479 7,364 7,363 6,837Professional and data processing fees 5,597 5,162 7,303 6,741 6,089FDIC insurance, other insurance and regulatory fees 1,973 2,072 2,232 2,035 1,960Loan/lease expense 291 106 378 345 407Net cost of (income from) and gains/losses on operations of other real estate (11) 16 36 3 50Advertising and marketing 1,822 1,775 2,346 1,830 1,746Communication and data connectivity 243 202 184 40 274Supplies 265 233 238 259 252Bank service charges 711 664 706 678 720Losses on debt extinguishment, net — — 1,963 — —Correspondent banking expense 335 333 329 338 314Intangibles amortization 506 506 997 662 661Payment card processing 496 508 577 569 547Trust expense 455 474 436 412 413Other 1,012 1,206 865 974 839Total noninterest expense $53,157 $52,125 $62,852 $56,587 $49,583 Net income before income taxes $39,478 $35,811 $38,668 $40,558 $30,571Federal and state income tax expense 3,227 2,428 3,004 3,844 1,552Net income $36,251 $33,383 $35,664 $36,714 $29,019 Basic EPS $2.20 $2.00 $2.13 $2.17 $1.71Diluted EPS $2.19 $1.99 $2.12 $2.16 $1.71 Weighted average common shares outstanding 16,489,987 16,651,808 16,756,717 16,919,785 16,928,542Weighted average common and common equivalent shares outstanding 16,569,815 16,741,541 16,858,672 17,015,730 17,006,282
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(1)Trust fees and investment advisory and management fees when combined are referred to as wealth management revenue.Consolidated Financial Highlights
(Unaudited) For the Six Months Ended June 30, June 30, 2026
2025
(dollars in thousands, except per share data)INCOME STATEMENT Interest income $241,118 $236,920 Interest expense 105,764 114,852 Net interest income 135,354 122,068 Provision for credit losses 7,162 8,277 Net interest income after provision for credit losses $ 128,192 $ 113,791 Trust fees (1) $8,175 $7,081 Investment advisory and management fees (1) 3,090 2,508 Deposit service fees 4,088 4,370 Gains on sales of residential real estate loans, net 1,121 853 Capital markets revenue 26,093 16,385 Earnings on bank-owned life insurance 1,956 1,522 Debit card fees 3,411 3,136 Correspondent banking fees 1,440 1,313 Loan related fee income 2,016 1,994 Fair value loss on derivatives and trading securities (67) (777)Other 1,056 622 Total noninterest income $ 52,379 $ 39,007 Salaries and employee benefits $63,509 $55,838 Occupancy and equipment expense 14,821 13,292 Professional and data processing fees 10,759 11,233 FDIC insurance, other insurance and regulatory fees 4,045 3,930 Loan/lease expense 397 788 Net cost of and gains/losses on operations of other real estate 5 41 Advertising and marketing 3,597 3,359 Communication and data connectivity 445 564 Supplies 498 459 Bank service charges 1,375 1,316 Correspondent banking expense 668 643 Intangibles amortization 1,012 1,322 Payment card processing 1,004 1,141 Trust expense 929 770 Other 2,218 1,426 Total noninterest expense $ 105,282 $ 96,122 Net income before income taxes $ 75,289 $ 56,676 Federal and state income tax expense 5,655 1,860 Net income $ 69,634 $ 54,816 Basic EPS $4.20 $3.24 Diluted EPS $4.18 $3.22 Weighted average common shares outstanding 16,570,898 16,914,663 Weighted average common and common equivalent shares outstanding 16,655,678 17,010,136
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(1)Trust fees and investment advisory and management fees when combined are referred to as wealth management revenue.Consolidated Financial Highlights
(Unaudited) As of and for the Quarter Ended For the Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30, 2026
2026
2025
2025
2025
2026
2025
(dollars in thousands, except per share data) COMMON SHARE DATA Common shares outstanding 16,367,268 16,496,102 16,690,603 16,838,866 16,934,698 Book value per common share (1) $70.25 $68.04 $66.64 $64.55 $62.04 Tangible book value per common share (Non-GAAP) (2) $61.35 $59.18 $57.86 $55.78 $53.28 Closing stock price $97.35 $85.45 $83.30 $75.64 $67.90 Market capitalization $1,593,354 $1,409,592 $1,390,327 $1,273,692 $1,149,866 Market price / book value 138.58% 125.58% 124.99% 117.18% 109.45% Market price / tangible book value 158.68% 144.38% 143.98% 135.61% 127.45% Earnings per common share (basic) LTM (3) $8.50 $8.01 $7.54 $7.21 $6.69 Price earnings ratio LTM (3) 11.45x 10.67 x 11.05 x 10.49 x 10.15 x TCE / TA (Non-GAAP) (4) 10.71% 10.31% 10.33% 10.06% 9.99% CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY Beginning balance $1,122,464 $1,112,311 $1,086,915 $1,050,554 $1,022,747 Net income 36,251 33,383 35,664 36,714 29,019 Other comprehensive income (loss), net of tax 4,354 (1,879) 1,981 8,342 (1,671) Common stock cash dividends declared (1,652) (1,674) (1,011) (1,017) (1,016) Repurchase and cancellation of shares of common stock as a result of a share repurchase program (13,469) (20,842) (12,635) (8,993) — Other (5) 1,809 1,165 1,397 1,315 1,475 Ending balance $ 1,149,757 $ 1,122,464 $ 1,112,311 $ 1,086,915 $ 1,050,554 REGULATORY CAPITAL RATIOS (6): Total risk-based capital ratio 14.13% 14.00% 14.19% 14.03% 14.26% Tier 1 risk-based capital ratio 11.18% 11.05% 11.02% 10.85% 10.96% Tier 1 leverage capital ratio 11.65% 11.44% 11.07% 11.29% 11.22% Common equity tier 1 ratio 10.68% 10.54% 10.52% 10.34% 10.43% KEY PERFORMANCE RATIOS AND OTHER METRICS Return on average assets (annualized) 1.51% 1.40% 1.46% 1.57% 1.27% 1.46% 1.21%Return on average total equity (annualized) 12.64% 11.75% 12.78% 13.65% 11.15% 12.20% 10.65%Net interest margin 3.10% 3.13% 3.06% 3.00% 2.97% 3.12% 2.95%Net interest margin TEY (Non-GAAP)(7) 3.55% 3.58% 3.57% 3.51% 3.46% 3.56% 3.45%Efficiency ratio (Non-GAAP) (8) 54.61% 57.67% 58.73% 55.78% 58.89% 56.08% 59.68%Gross loans/leases held for investment / total assets 73.83% 70.32% 75.44% 75.65% 75.42% 73.83% 74.91%Gross loans/leases held for investment / total deposits 94.77% 87.00% 96.65% 97.25% 94.61% 94.77% 94.61%Effective tax rate 8.17% 6.78% 7.77% 9.48% 5.08% 7.51% 3.28%Full-time equivalent employees 1,001 997 1,004 994 1,001 1,001 1,001 AVERAGE BALANCES Assets $9,581,171 $9,550,010 $9,758,848 $9,354,411 $9,155,473 9,565,677 $9,085,843 Loans/leases 7,182,293 7,183,312 7,292,592 7,048,314 6,881,731 7,182,800 6,836,274 Deposits 7,613,397 7,650,696 7,620,212 7,383,373 7,218,540 7,631,944 7,182,612 Total stockholders’ equity 1,147,382 1,136,307 1,116,342 1,075,715 1,041,428 1,141,875 1,029,524
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(1)Includes accumulated other comprehensive income (loss).(2)Includes accumulated other comprehensive income (loss) and excludes intangible assets. See GAAP to Non-GAAP reconciliations.(3)LTM: Last twelve months.(4)TCE / TCA: tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations.(5)Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.(6)Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.(7)TEY: Tax equivalent yield. See GAAP to Non-GAAP reconciliations.(8)See GAAP to Non-GAAP reconciliations.Consolidated Financial Highlights
(Unaudited) ANALYSIS OF NET INTEREST INCOME AND MARGIN
For the Quarter Ended June 30, 2026 March 31, 2026 June 30, 2025 Average Balance Interest Earned
or Paid Average Yield or Cost Average Balance Interest Earned
or Paid Average Yield or Cost Average Balance Interest Earnedor Paid Average Yield or Cost (dollars in thousands)Fed funds sold $5,264 $52 3.91% $8,003 $73 3.64% $14,285 $159 4.40%Interest-bearing deposits at financial institutions 150,092 1,353 3.62% 167,670 1,488 3.60% 151,898 1,634 4.31%Investment securities - taxable 426,526 4,755 4.47% 410,342 4,962 4.84% 401,657 4,805 4.79%Investment securities - nontaxable (1) 989,220 15,537 6.29% 943,300 14,049 5.97% 893,753 12,872 5.76%Restricted investment securities 30,028 519 6.84% 24,525 385 6.28% 34,037 622 7.23%Loans (1) 7,182,293 108,623 6.07% 7,183,312 108,881 6.15% 6,881,731 110,245 6.43%Total earning assets (1) $8,783,423 $130,839 5.97% $8,737,152 $129,838 6.02% $8,377,361 $130,337 6.24% Interest-bearing deposits $5,519,231 $36,251 2.63% $5,451,672 $35,493 2.64% $5,080,367 $38,604 3.05%Time deposits 1,080,345 9,543 3.54% 1,208,298 11,061 3.71% 1,193,035 12,409 4.17%Short-term borrowings 3,138 30 3.82% 3,244 27 3.36% 1,420 15 4.23%Federal Home Loan Bank advances 153,279 1,384 3.57% 41,827 297 2.84% 250,603 2,853 4.50%Other borrowings 107,389 1,265 4.71% 107,416 1,167 4.35% — — N/ASubordinated notes 234,250 3,923 6.70% 234,155 3,920 6.70% 233,631 3,599 6.16%Junior subordinated debentures 49,035 716 5.78% 49,002 687 5.61% 48,904 685 5.54%Total interest-bearing liabilities $7,146,667 $53,112 2.98% $7,095,614 $52,652 3.00% $6,807,960 $58,165 3.42% Net interest income (1) $77,727 $77,186 $72,172 Net interest margin 3.10% 3.13% 2.97%Net interest margin TEY (Non-GAAP) (1) (2) 3.55% 3.58% 3.46%Cost of funds (3) 2.61% 2.64% 3.01%
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(1)Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.(2)TEY: Tax equivalent yield. See GAAP to Non-GAAP reconciliations.(3)Cost of funds includes the effect of noninterest-bearing deposits.Consolidated Financial Highlights
(Unaudited) As of June 30, March 31, December 31, September 30, June 30, 2026
2026
2025
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2025
(dollars in thousands) ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES Beginning balance $85,459 $90,127 $88,770 $88,732 $90,354 Change in ACL for transfer of loans to LHFS 374 (3,450) — — — Provision for credit losses 4,652 2,688 5,562 4,225 4,667 Loans/leases charged off (3,573) (4,447) (4,469) (4,746) (6,490)Recoveries on loans/leases previously charged off 273 541 264 559 201 Ending balance $ 87,185 $ 85,459 $ 90,127 $ 88,770 $ 88,732 NONPERFORMING ASSETS Nonaccrual loans/leases $39,139 $41,823 $42,212 $42,167 $42,482 Accruing loans/leases past due 90 days or more 1 35 85 43 7 Total nonperforming loans/leases 39,140 41,858 42,297 42,210 42,489 Other real estate owned 350 540 540 — 62 Other repossessed assets 20 500 500 510 113 Total nonperforming assets $ 39,510 $ 42,898 $ 43,337 $ 42,720 $ 42,664 ASSET QUALITY RATIOS Nonperforming assets / total assets 0.41% 0.45% 0.45% 0.45% 0.46%ACL for loans and leases / total loans/leases held for investment 1.24% 1.26% 1.26% 1.24% 1.28%ACL for loans and leases / nonperforming loans/leases 222.75% 204.16% 213.08% 210.31% 208.84%Net charge-offs as a % of average loans/leases 0.05% 0.05% 0.06% 0.06% 0.09% INTERNALLY ASSIGNED RISK RATING (1) Special mention $69,706 $82,819 $74,765 $76,750 $68,621 Substandard (2) 64,519 63,491 64,142 67,319 81,040 Doubtful (2) — — — — — Total Criticized loans (3) $ 134,225 $ 146,310 $ 138,907 $ 144,069 $ 149,661 Classified loans as a % of total loans/leases (2) 0.92% 0.87% 0.89% 0.94% 1.17%Total Criticized loans as a % of total loans/leases (3) 1.91% 2.01% 1.94% 2.01% 2.16%
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(1)Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass for the government guaranteed portion.(2)Classified loans are defined as loans with internally assigned risk ratings of 10 or 11, regardless of performance, and include loans identified as Substandard or Doubtful.(3)Total Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11, regardless of performance, and include loans identified as Special Mention, Substandard, or Doubtful.Consolidated Financial Highlights
(Unaudited) For the Quarter Ended For the Six Months Ended June 30, March 31, June 30, June 30, June 30,SELECT FINANCIAL DATA - SUBSIDIARIES 2026
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2025
(dollars in thousands) TOTAL ASSETS Quad City Bank and Trust (1) $2,787,394 $3,105,984 $2,662,450 m2 Equipment Finance, LLC 130,764 155,889 242,722 Cedar Rapids Bank and Trust 2,880,251 2,848,359 2,664,293 Community State Bank 1,745,280 1,740,480 1,605,966 Guaranty Bank 2,377,330 2,418,895 2,365,944 TOTAL DEPOSITS Quad City Bank and Trust (1) $2,393,789 $2,726,530 $2,309,942 Cedar Rapids Bank and Trust 2,075,070 1,979,934 1,884,370 Community State Bank 1,263,222 1,313,221 1,272,296 Guaranty Bank 1,879,401 1,775,974 1,866,749 TOTAL LOANS & LEASES Quad City Bank and Trust (1) $1,895,840 $2,048,394 $2,032,168 m2 Equipment Finance, LLC 135,065 160,877 250,019 Cedar Rapids Bank and Trust 2,011,688 2,020,322 1,852,316 Community State Bank 1,291,151 1,317,469 1,206,735 Guaranty Bank 1,834,251 1,899,315 1,833,706 TOTAL LOANS & LEASES / TOTAL DEPOSITS Quad City Bank and Trust (1) 79% 75% 88% Cedar Rapids Bank and Trust 97% 102% 98% Community State Bank 102% 100% 95% Guaranty Bank 98% 107% 98% TOTAL LOANS & LEASES / TOTAL ASSETS Quad City Bank and Trust (1) 68% 66% 76% Cedar Rapids Bank and Trust 70% 71% 70% Community State Bank 74% 76% 75% Guaranty Bank 77% 79% 78% ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT Quad City Bank and Trust (1) 1.17% 1.30% 1.32% m2 Equipment Finance, LLC 5.05% 4.96% 4.26% Cedar Rapids Bank and Trust 1.19% 1.32% 1.35% Community State Bank 1.00% 1.04% 1.09% Guaranty Bank 1.53% 1.32% 1.29% RETURN ON AVERAGE ASSETS (ANNUALIZED) Quad City Bank and Trust (1) 1.59% 1.33% 1.24% 1.46% 1.28%Cedar Rapids Bank and Trust 3.03% 2.49% 2.36% 2.75% 2.25%Community State Bank 1.34% 1.36% 1.31% 1.34% 1.19%Guaranty Bank 0.66% 1.24% 0.85% 0.95% 0.79% NET INTEREST MARGIN PERCENTAGE (2) Quad City Bank and Trust (1) 3.15% 3.24% 3.45% 3.19% 3.45%Cedar Rapids Bank and Trust 3.99% 3.99% 3.99% 3.99% 4.00%Community State Bank 3.91% 3.91% 3.87% 3.91% 3.83%Guaranty Bank 3.27% 3.45% 3.11% 3.36% 3.08%
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(1)Quad City Bank and Trust amounts include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC is also presented separately for certain (applicable) measurements.(2)Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.Consolidated Financial Highlights
(Unaudited) As of June 30, March 31, December 31, September 30, June 30,GAAP TO NON-GAAP RECONCILIATIONS 2026
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2025
(dollars in thousands, except per share data)TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1) Stockholders’ equity (GAAP) $1,149,757 $1,122,464 $1,112,311 $1,086,915 $1,050,554 Less: Intangible assets 145,663 146,169 146,675 147,672 148,333 Tangible common equity (non-GAAP) $1,004,094 $976,295 $965,636 $939,243 $902,221 Total assets (GAAP) $9,520,643 $9,613,695 $9,498,194 $9,487,935 $9,179,767 Less: Intangible assets 145,663 146,169 146,675 147,672 148,333 Tangible assets (non-GAAP) $9,374,980 $9,467,526 $9,351,519 $9,340,263 $9,031,434 Tangible common equity to tangible assets ratio (non-GAAP) 10.71% 10.31% 10.33% 10.06% 9.99% TANGIBLE BOOK VALUE PER SHARE (1) Tangible common equity (non-GAAP) $1,004,094 $976,295 $965,636 $939,243 $902,221 Common shares outstanding 16,367,268 16,496,102 16,690,603 16,838,866 16,934,698 Tangible book value per common share (Non-GAAP) $61.35 $59.18 $57.86 $55.78 $53.28
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(1)These metrics are non-GAAP financial measures. The Company's management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders' equity and total assets, which are the most directly comparable GAAP financial measures.Consolidated Financial Highlights
(Unaudited) GAAP TO NON-GAAP RECONCILIATIONS For the Quarter Ended For the Six Months Ended June 30, March 31, December 31, September 30, June 30, June 30, June 30,ADJUSTED NET INCOME (1) 2026
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2025
2025
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2025
(dollars in thousands, except per share data)Net income (GAAP) $36,251 $33,383 $35,664 $36,714 $29,019 $69,634 $54,816 Less non-core items (post-tax) (2): Income: Fair value loss on derivatives, net (4) (13) (88) (223) (397) (17) (553)Total adjusted income (non-GAAP) $(4) $(13) $(88) $(223) $(397) $(17) $(553) Expense: Losses on debt extinguishment, net — — 1,551 — — — — Total adjusted expense (non-GAAP) $— $— $1,551 $— $— $— $— Adjusted net income (non-GAAP) (1) $36,255 $33,396 $37,303 $36,937 $29,416 $69,651 $55,369 ADJUSTED EARNINGS PER COMMON SHARE (1) Adjusted net income (non-GAAP) (from above) $36,255 $33,396 $37,303 $36,937 $29,416 $69,651 $55,369 Weighted average common shares outstanding 16,489,987 16,651,808 16,756,717 16,919,785 16,928,542 16,570,898 16,914,663 Weighted average common and common equivalent shares outstanding 16,569,815 16,741,541 16,858,672 17,015,730 17,006,282 16,655,678 17,010,136 Adjusted earnings per common share (non-GAAP): Basic $2.20 $2.01 $2.23 $2.18 $1.74 $4.20 $3.27 Diluted $2.19 $1.99 $2.21 $2.17 $1.73 $4.18 $3.26 ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1) Adjusted net income (non-GAAP) (from above) $36,255 $33,396 $37,303 $36,937 $29,416 $69,651 $55,369 Average Assets $9,581,171 $9,550,010 $9,758,848 $9,354,411 $9,155,473 $9,565,677 $9,085,843 Adjusted return on average assets (annualized) (non-GAAP) 1.51% 1.40% 1.53% 1.58% 1.29% 1.46% 1.22%Adjusted return on average equity (annualized) (non-GAAP) 12.64% 11.76% 13.37% 13.73% 11.30% 12.20% 10.76% NET INTEREST MARGIN TEY (3) Net interest income (GAAP) $67,916 $67,438 $68,354 $64,799 $62,082 $135,354 $122,068 Plus: Tax equivalent adjustment (4) 9,811 9,748 11,277 10,864 10,090 19,559 19,603 Net interest income - tax equivalent (non-GAAP) $77,727 $77,186 $79,631 $75,663 $72,172 $154,913 $141,671 Average earning assets $8,783,423 $8,737,152 $8,872,022 $8,575,514 $8,377,361 $8,760,416 $8,309,575 Net interest margin (GAAP) 3.10% 3.13% 3.06% 3.00% 2.97% 3.12% 2.95%Net interest margin TEY (non-GAAP) 3.55% 3.58% 3.57% 3.51% 3.46% 3.56% 3.45% EFFICIENCY RATIO (5) Noninterest expense (GAAP) $53,157 $52,125 $62,852 $56,587 $49,583 $105,282 $96,122 Net interest income (GAAP) $67,916 $67,438 $68,354 $64,799 $62,082 $135,354 $122,068 Noninterest income (GAAP) 29,427 22,952 38,665 36,651 22,115 52,379 39,007 Total income $97,343 $90,390 $107,019 $101,450 $84,197 $187,733 $161,075 Efficiency ratio (noninterest expense/total income) (non-GAAP) 54.61% 57.67% 58.73% 55.78% 58.89% 56.08% 59.68%Adjusted efficiency ratio (adjusted noninterest expense/adjusted total income) (non-GAAP) 54.61% 57.66% 56.84% 55.62% 58.54% 56.07% 59.42%
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(1)Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company's management believes that these measurements are important to investors as they exclude non-core or non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. In compliance with applicable rules of the SEC, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.(2)Adjusted or non-recurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.(3)Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.(4)Net interest margin TEY is a non-GAAP financial measure. The Company's management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure.(5)Efficiency ratio is a non-GAAP measure. The Company's management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures.