First Quarter 2026 Highlights
- Net income of $33.4 million, or $1.99 per diluted share, representing a 31% year-over-year increase in diluted earnings per share (“EPS”) and a 1.40% return on average assets (“ROAA”)
- Net interest income of $67.4 million, representing 12% growth on a year-over-year basis
- Solid loan growth of 8% annualized prior to m2 Equipment Finance (“m2”) runoff
- Robust core deposit growth of $409 million, or 23% annualized
- Significant noninterest expense reduction of 17% on a linked-quarter basis
- Tangible book value (“TBV”) per share1 expansion of $1.33, or 9% annualized on a linked-quarter basis
- Repurchased 247,289 shares at an average price of $84.28 per share
MOLINE, Ill., April 22, 2026 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $33.4 million and diluted EPS of $1.99 for the first quarter of 2026, compared to net income of $35.7 million and diluted EPS of $2.12 for the fourth quarter of 2025 and $25.8 million and $1.52 in the first quarter of 2025. Notably, first quarter 2026 net income represented a record first quarter result for the Company.
Adjusted net income1 and adjusted diluted EPS1 for the first quarter of 2026 were $33.4 million and $1.99, respectively, compared to $37.3 million and $2.21 for the fourth quarter of 2025 and $26.0 million and $1.53 in the first quarter of 2025.
For the Quarter Ended March 31, December 31, March 31,$ in millions (except per share data) 2026 2025 2025Net Income $33.4 $35.7 $25.8Diluted EPS $1.99 $2.12 $1.52Adjusted Net Income1 $33.4 $37.3 $26.0Adjusted Diluted EPS1 $1.99 $2.21 $1.53“We are very pleased to have delivered record first quarter net income, representing 1.40% ROAA and 31% EPS growth compared to a year ago, in what is historically a softer quarter for capital markets revenue. Our strong first quarter results were highlighted by healthy loan and deposit growth, significantly lower noninterest expense, and modest margin expansion. These results underscore the continued progress we are making in strengthening profitability across our traditional banking and wealth management businesses. We also maintained excellent asset quality and generated meaningful growth in tangible book value per share while returning nearly $21 million to shareholders through opportunistic share repurchases. Additionally, we continued investing in our digital transformation as we build a more modern, scalable bank for our clients and employees,” said Todd Gipple, President and Chief Executive Officer.
Continued Strong Loan Growth
In the first quarter of 2026, total loans grew $145.3 million, or 8% annualized, excluding the planned runoff of the m2 portfolio. The Company identified $522.9 million of low-income housing tax credit (“LIHTC”) loans planned for the next permanent loan securitization and construction loan sale. Following the successful completion of the Company’s first sale of LIHTC construction loans to a private investor during the fourth quarter of 2025, the Company expects to close on its second LIHTC construction loan sale of approximately $207.3 million in funded balances to a new private investor during the second quarter of 2026. The Company also expects to close on its next Freddie Mac LIHTC tax-exempt permanent loan securitization of $315.6 million during the second quarter of 2026.
“Our first quarter loan growth was driven by both our LIHTC and traditional lending businesses and was within our guidance range. The upcoming offtake of LIHTC loans will allow us to expand LIHTC lending opportunities and drive incremental capital markets revenue. Our pipelines are strong, and we anticipate increased traditional and LIHTC lending in the coming quarters that will mitigate the expected short-term net interest income dilution from these transactions,” said Mr. Gipple. “Accordingly, we are reaffirming our gross loan growth guidance of 10% to 15% annualized for the final three quarters of 2026.”
Core Deposit Growth Accelerates
Total core deposits increased by $409.1 million, or 23% annualized, from the fourth quarter of 2025. The deposit mix remained stable while total brokered deposits declined by $52.4 million in the first quarter. The Company’s total deposits at the end of the first quarter were $7.8 billion, an increase of $356.7 million, or 19% annualized, contributing to a decrease in the gross loans/leases held for investment to total deposits ratio to 87%.
“We remain focused on growing core deposits and improving our deposit mix across our markets,” added Mr. Gipple. “During the quarter, noninterest bearing balances increased $37 million while higher-cost brokered deposits declined $52 million to just 2% of total deposits, further strengthening our funding profile.”
Ongoing Margin Expansion
Net interest income for the first quarter of 2026 was $67.4 million, a decrease of $0.9 million or 1%, from the fourth quarter of 2025, but increased slightly when adjusted for two fewer days in the first quarter. Net interest margin (“NIM”) was 3.17% and NIM on a tax-equivalent yield (“TEY”) basis1 was 3.58% for the first quarter, as compared to 3.06% and 3.57%, respectively for the prior quarter.
With robust core deposit growth during the first quarter of 2026, the Company was able to reduce higher-cost wholesale and brokered funding, contributing to a 22 basis point reduction in the cost of funds. The decline in the cost of funds was partially offset by a 19 basis point reduction in average earning asset yields, reflecting lower average loan and investment balances during the quarter.
“Our NIM TEY1 increased one basis point from the fourth quarter of 2025, which was below the low end of our guidance range,” said Nick Anderson, Chief Financial Officer. “Our robust deposit growth occurred early in the quarter, enabling us to reduce higher-cost wholesale and brokered funding, while loan growth occurred late in the quarter, muting the full benefit to margin expansion. We are guiding to second quarter NIM TEY1 ranging from static to an increase of 3 basis points, assuming no Federal Reserve rate changes.”
Capital Markets Revenue at Historical First Quarter Average and Wealth Management Revenue up 14% Annualized
Noninterest income for the first quarter of 2026 was $23.0 million, down from $38.7 million in the fourth quarter of 2025. The Company generated $10.7 million of capital markets revenue in the first quarter of 2026 compared to $24.5 million in the prior quarter. Wealth Management revenue totaled $5.4 million for the quarter, representing a 3% increase from the fourth quarter of 2025.
“Our capital markets business performed as expected in the first quarter, reflecting typical seasonality and in line with the historical first quarter average. Given the strength of our pipeline and the continued robust demand for affordable housing, we are increasing the lower end of our capital markets revenue guidance by $5 million, establishing a range of $60 million to $70 million over the next four quarters. With nearly a decade of experience in the LIHTC business, we continue to view it as a highly durable, profitable, and differentiated business for the Company, supported by long-standing developer relationships and consistently high-quality assets,” said Mr. Gipple.
“Our Wealth Management business delivered 14% annualized revenue growth in the first quarter, driven by new client relationships and fee income from tax-related services. We expect this momentum to continue, supported by the strategic investments we have made in this business,” said Mr. Gipple.
Flexible Expense Structure Delivers Significant Noninterest Expense Reduction
Noninterest expense for the first quarter of 2026 totaled $52.1 million compared to $62.9 million for the fourth quarter of 2025. The $10.7 million linked-quarter decrease primarily reflected a $5.5 million reduction in salary and employee benefits from lower variable compensation tied to earnings performance. The decline was also due to $2.1 million in lower professional and data processing fees reflecting the timing of digital transformation expenses and the impact from the debt extinguishment loss of $2.0 million in the prior quarter.
“Our noninterest expense decreased 17% during the quarter, reflecting the flexibility of our expense structure, particularly variable compensation tied to performance and the timing of digital transformation investments. As a result, expenses were well below our guided range. Our variable compensation structure is designed to support operating leverage while maintaining expense flexibility through revenue cycles,” said Mr. Anderson. “This structure closely aligns our underlying expense base with performance, supporting a pay-for-performance culture and value creation for shareholders.”
For the second quarter of 2026, the Company expects noninterest expense to be in the range of $55 million to $58 million, which assumes capital markets revenue and loan growth are within the guidance ranges while continuing to invest in digital transformation initiatives. “This outlook reflects our disciplined approach to expense management under our 9/6/5 strategic model, which targets noninterest expense growth of less than 5% annually while enhancing operating leverage and profitability,” added Mr. Anderson.
Asset Quality Remains Excellent
Nonperforming assets (“NPAs”) totaled $42.9 million at the end of the first quarter of 2026, a decrease of $0.4 million from the prior quarter which resulted in the NPA to total assets ratio remaining static at 0.45% as of March 31, 2026. The ratio of criticized loans to total loans and leases as of March 31, 2026, was 2.01%, remaining well below the Company’s long-term historical average and near the five-year low of 1.94% established in the prior quarter. The marginal increase in criticized loans was primarily driven by one large credit which is expected to be resolved favorably later this year.
The Company recorded a total provision for credit losses of $2.5 million during the quarter, down from $5.5 million in the prior quarter. Net charge-offs were $3.9 million during the first quarter of 2026, a decline of $0.3 million from the prior quarter. The allowance for credit losses (“ACL”) to total loans held for investment remained static from the prior quarter at 1.26% as of March 31, 2026. The first quarter change in the ACL balance included a $5.4 million reserve release associated with LIHTC loans transferred to held for sale in connection with the planned securitization and sale activities.
Exceptional TBV1 Per Share Growth
The Company’s TBV¹ per share increased by $1.33, or 9% annualized, during the first quarter of 2026. This growth was driven by strong earnings during the quarter, partially offset by share repurchases.
As of March 31, 2026, the tangible common equity to tangible assets ratio¹ decreased 2 basis points to 10.31%, the common equity tier 1 ratio increased 2 basis points to 10.54%, and the total risk-based capital ratio decreased 19 basis points to 14.00%. These quarterly changes reflect the combined impact of strong earnings and share repurchases during the quarter. The total risk-based capital ratio was also impacted by a reduction in subordinated debt capital treatment on our 2019 issuance and lower ACL balances. By comparison, these ratios were 10.33%, 10.52%, and 14.19%, respectively, as of December 31, 2025.
Continued Opportunistic Share Repurchases
The Company continued share repurchase activity during the first quarter, purchasing approximately 247 thousand shares and returning $20.8 million of capital to shareholders. Share repurchases during the quarter were completed at an attractive valuation relative to TBV1. The repurchase program authorized in October 2025 provides a flexible capital allocation tool to deploy capital consistently with strategic and financial objectives, underscoring management’s confidence in the Company’s long-term earnings power and commitment to shareholder value creation.
Conference Call Details
The Company will host an earnings call/webcast tomorrow, April 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 April 30, 2026. The replay access information is 855-669-9658 (international 412-317-0088); access code 8231225. 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 36 locations in Iowa, Missouri, and Illinois. As of March 31, 2026, the Company had $9.6 billion in assets, $7.3 billion in loans and $7.8 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 and ongoing conflicts in the Middle East), or other adverse events that could cause economic deterioration or instability in credit markets, 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) changes in the interest rates and repayment rates of the Company’s assets; (xxiii) the effectiveness of the Company’s risk management framework; and (xxiv) 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 March 31, December 31, September 30, June 30, March 31, 2026
2025
2025
2025
2025
(dollars in thousands)CONDENSED BALANCE SHEET Cash and due from banks $80,038 $76,494 $77,581 $104,769 $98,994 Federal funds sold and interest-bearing deposits 39,290 76,399 84,738 90,120 163,891 Securities, net of allowance for credit losses 1,324,750 1,312,310 1,308,689 1,263,452 1,220,717 Loans receivable held for sale (1) 524,931 1,429 1,457 1,162 2,025 Loans/leases receivable held for investment 6,760,569 7,165,526 7,177,464 6,923,762 6,821,142 Allowance for credit losses (85,459) (90,127) (88,770) (88,732) (90,354)Intangibles 7,574 8,080 9,077 9,738 10,400 Goodwill 138,595 138,595 138,595 138,595 138,595 Derivatives 209,836 188,409 202,703 178,002 172,231 Other assets 613,571 621,079 576,401 558,899 544,547 Total assets $ 9,613,695 $ 9,498,194 $ 9,487,935 $ 9,179,767 $ 9,082,188 Total deposits $7,770,850 $7,414,198 $7,380,068 $7,318,353 $7,337,390 Total borrowings 418,257 638,541 706,827 509,359 429,921 Derivatives 149,836 137,051 150,375 146,941 136,334 Other liabilities 152,288 196,093 163,750 154,560 155,796 Total stockholders’ equity 1,122,464 1,112,311 1,086,915 1,050,554 1,022,747 Total liabilities and stockholders’ equity $ 9,613,695 $ 9,498,194 $ 9,487,935 $ 9,179,767 $ 9,082,188 ANALYSIS OF LOAN PORTFOLIO Loan/lease mix: (2) Commercial and industrial - revolving $376,284 $384,656 $386,674 $380,029 $388,479 Commercial and industrial - other 1,059,148 1,094,064 1,107,896 1,180,859 1,231,198 Commercial and industrial - other - LIHTC 237,125 224,802 222,772 194,830 212,921 Total commercial and industrial 1,672,557 1,703,522 1,717,342 1,755,718 1,832,598 Commercial real estate, owner occupied 588,098 577,352 586,578 593,675 599,488 Commercial real estate, non-owner occupied 1,000,673 1,036,655 1,053,732 1,036,049 1,040,281 Construction and land development 608,039 566,891 515,787 454,022 403,001 Construction and land development - LIHTC 693,591 741,531 1,028,978 1,075,000 1,016,207 Multi-family 355,349 340,080 316,353 301,432 289,782 Multi-family - LIHTC 1,582,573 1,429,251 1,187,243 950,331 888,517 Direct financing leases 7,947 9,533 11,090 12,880 14,773 1-4 family real estate 618,973 603,683 599,838 592,253 592,127 Consumer 157,700 158,457 161,980 153,564 146,393 Total loans/leases $7,285,500 $7,166,955 $7,178,921 $6,924,924 $6,823,167 Less allowance for credit losses 85,459 90,127 88,770 88,732 90,354 Net loans/leases $ 7,200,041 $ 7,076,828 $ 7,090,151 $ 6,836,192 $ 6,732,813 ANALYSIS OF SECURITIES PORTFOLIO Securities mix: U.S. government sponsored agency securities $15,059 $16,024 $14,208 $14,267 $17,487 Municipal securities 1,081,102 1,081,274 1,085,669 1,033,642 1,003,985 Residential mortgage-backed and related securities 86,222 68,855 57,108 58,864 43,194 Asset backed securities 4,076 4,439 4,918 6,684 7,764 Other securities 55,845 58,143 63,824 67,358 66,105 Trading securities (3) 82,728 83,857 83,225 82,900 82,445 Total securities $1,325,032 $1,312,592 $1,308,952 $1,263,715 $1,220,980 Less allowance for credit losses 282 282 263 263 263 Net securities $ 1,324,750 $ 1,312,310 $ 1,308,689 $ 1,263,452 $ 1,220,717 ANALYSIS OF DEPOSITS Deposit mix: Noninterest-bearing demand deposits $982,696 $945,513 $931,774 $952,032 $963,851 Interest-bearing demand deposits 5,634,742 5,196,438 5,176,364 5,087,783 5,119,601 Time deposits 968,914 1,035,317 1,004,980 974,341 951,606 Brokered deposits 184,498 236,930 266,950 304,197 302,332 Total deposits $ 7,770,850 $ 7,414,198 $ 7,380,068 $ 7,318,353 $ 7,337,390 ANALYSIS OF BORROWINGS Borrowings mix: Term FHLB advances $10,609 $10,383 $145,383 $145,383 $145,383 Overnight FHLB advances 15,000 235,000 145,000 80,000 — Other borrowings 107,457 107,395 130,609 — — Other short-term borrowings 1,950 2,650 2,850 1,350 2,050 Subordinated notes 234,217 234,122 234,027 233,701 233,595 Junior subordinated debentures 49,024 48,991 48,958 48,925 48,893 Total borrowings $ 418,257 $ 638,541 $ 706,827 $ 509,359 $ 429,921
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Consolidated Financial Highlights
(Unaudited) For the Quarter Ended March 31, December 31, September 30, June 30, March 31, 2026
2025 2025 2025 2025
(dollars in thousands, except per share data)INCOME STATEMENT Interest income $120,091 $127,491 $125,015 $120,247 $116,673 Interest expense 52,653 59,137 60,216 58,165 56,687 Net interest income 67,438 68,354 64,799 62,082 59,986 Provision for credit losses 2,454 5,499 4,305 4,043 4,234 Net interest income after provision for credit losses $ 64,984 $ 62,855 $ 60,494 $ 58,039 $ 55,752 Trust fees (1) $3,894 $3,749 $3,544 $3,395 $3,686 Investment advisory and management fees (1) 1,539 1,504 1,488 1,254 1,254 Deposit service fees 1,973 2,092 2,231 2,187 2,183 Gains on sales of residential real estate loans, net 614 666 529 556 297 Capital markets revenue 10,701 24,481 23,832 9,869 6,516 Earnings on bank-owned life insurance 931 888 952 998 524 Debit card fees 1,659 1,640 1,648 1,648 1,488 Correspondent banking fees 693 699 664 699 614 Loan related fee income 950 930 846 1,096 898 Fair value gain (loss) on derivatives and trading securities (869) 800 324 230 (1,007)Other 867 1,216 593 183 439 Total noninterest income $ 22,952 $ 38,665 $ 36,651 $ 22,115 $ 16,892 Salaries and employee benefits $31,389 $36,898 $34,338 $28,474 $27,364 Occupancy and equipment expense 7,479 7,364 7,363 6,837 6,455 Professional and data processing fees 5,162 7,303 6,741 6,089 5,144 FDIC insurance, other insurance and regulatory fees 2,072 2,232 2,035 1,960 1,970 Loan/lease expense 106 378 345 407 381 Net cost of (income from) and gains/losses on operations of other real estate 16 36 3 50 (9)Advertising and marketing 1,775 2,346 1,830 1,746 1,613 Communication and data connectivity 202 184 40 274 290 Supplies 233 238 259 252 207 Bank service charges 664 706 678 720 596 Losses on debt extinguishment, net — 1,963 — — — Correspondent banking expense 333 329 338 314 329 Intangibles amortization 506 997 662 661 661 Payment card processing 508 577 569 547 594 Trust expense 474 436 412 413 357 Other 1,206 865 974 839 587 Total noninterest expense $ 52,125 $ 62,852 $ 56,587 $ 49,583 $ 46,539 Net income before income taxes $ 35,811 $ 38,668 $ 40,558 $ 30,571 $ 26,105 Federal and state income tax expense 2,428 3,004 3,844 1,552 308 Net income $ 33,383 $ 35,664 $ 36,714 $ 29,019 $ 25,797 Basic EPS $2.00 $2.13 $2.17 $1.71 $1.53 Diluted EPS $1.99 $2.12 $2.16 $1.71 $1.52 Weighted average common shares outstanding 16,651,808 16,756,717 16,919,785 16,928,542 16,900,785 Weighted average common and common equivalent shares outstanding 16,741,541 16,858,672 17,015,730 17,006,282 17,013,992
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(1)Trust fees and investment advisory and management fees when combined are referred to as wealth management revenue.
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
2025
2025
2025
2025
(dollars in thousands, except per share data) COMMON SHARE DATA Common shares outstanding 16,496,102 16,690,603 16,838,866 16,934,698 16,920,363 Book value per common share (1) $68.04 $66.64 $64.55 $62.04 $60.44 Tangible book value per common share (Non-GAAP) (2) $59.18 $57.86 $55.78 $53.28 $51.64 Closing stock price $85.45 $83.30 $75.64 $67.90 $71.32 Market capitalization $1,409,592 $1,390,327 $1,273,692 $1,149,866 $1,206,760 Market price / book value 125.58% 124.99% 117.18% 109.45% 117.99%Market price / tangible book value 144.38% 143.98% 135.61% 127.45% 138.11%Earnings per common share (basic) LTM (3) $8.01 $7.54 $7.21 $6.69 $6.71 Price earnings ratio LTM (3) 10.67x 11.05x 10.49x 10.15x 10.63xTCE / TA (Non-GAAP) (4) 10.31% 10.33% 10.06% 9.99% 9.78% CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY Beginning balance $1,112,311 $1,086,915 $1,050,554 $1,022,747 $997,387 Net income 33,383 35,664 36,714 29,019 25,797 Other comprehensive income (loss), net of tax (1,879) 1,981 8,342 (1,671) 404 Common stock cash dividends declared (1,674) (1,011) (1,017) (1,016) (1,015)Repurchase and cancellation of shares of common stock as a result of a share repurchase program (20,842) (12,635) (8,993) — — Other (5) 1,165 1,397 1,315 1,475 174 Ending balance $ 1,122,464 $ 1,112,311 $ 1,086,915 $ 1,050,554 $ 1,022,747 REGULATORY CAPITAL RATIOS (6): Total risk-based capital ratio 14.00% 14.19% 14.03% 14.26% 14.18%Tier 1 risk-based capital ratio 11.05% 11.02% 10.85% 10.96% 10.81%Tier 1 leverage capital ratio 11.44% 11.07% 11.29% 11.22% 11.06%Common equity tier 1 ratio 10.54% 10.52% 10.34% 10.43% 10.27% KEY PERFORMANCE RATIOS AND OTHER METRICS Return on average assets (annualized) 1.40% 1.46% 1.57% 1.27% 1.14%Return on average total equity (annualized) 11.75% 12.78% 13.65% 11.15% 10.14%Net interest margin 3.17% 3.06% 3.00% 2.97% 2.95%Net interest margin TEY (Non-GAAP)(7) 3.58% 3.57% 3.51% 3.46% 3.42%Efficiency ratio (Non-GAAP) (8) 57.67% 58.73% 55.78% 58.89% 60.54%Gross loans/leases held for investment / total assets 70.32% 75.44% 75.65% 75.42% 75.10%Gross loans/leases held for investment / total deposits 87.00% 96.65% 97.25% 94.61% 92.96%Effective tax rate 6.78% 7.77% 9.48% 5.08% 1.18%Full-time equivalent employees (9) 997 1004 994 1,001 972 AVERAGE BALANCES Assets $9,550,010 $9,758,848 $9,354,411 $9,155,473 $9,015,439 Loans/leases 7,183,312 7,292,592 7,048,314 6,881,731 6,790,312 Deposits 7,650,696 7,620,212 7,383,373 7,218,540 7,146,286 Total stockholders’ equity 1,136,307 1,116,342 1,075,715 1,041,428 1,017,487
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QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited) ANALYSIS OF NET INTEREST INCOME AND MARGIN
For the Quarter Ended March 31, 2026 December 31, 2025 March 31, 2025 Average Balance Interest Earned or Paid Average Yield or Cost Average Balance Interest Earned or Paid Average Yield or Cost Average Balance Interest Earned or Paid Average Yield or Cost (dollars in thousands)Fed funds sold $8,003 $73 3.64% $12,148 $121 3.89% $9,009 $99 4.40%Interest-bearing deposits at financial institutions 71,131 591 3.60% 175,520 1,731 3.91% 166,897 1,804 4.38%Investment securities - taxable 410,342 4,962 4.84% 404,238 4,887 4.83% 400,779 4,588 4.59%Investment securities - nontaxable (1) 943,300 14,049 5.97% 956,457 14,409 6.02% 843,476 11,722 5.57%Restricted investment securities 24,525 385 6.28% 31,067 546 6.88% 30,562 534 6.99%Loans (1) 7,183,312 108,881 6.15% 7,292,592 117,073 6.37% 6,790,312 107,439 6.42%Total earning assets (1) $8,640,613 $128,941 6.02% $8,872,022 $138,767 6.21% $8,241,035 $126,186 6.20% Interest-bearing deposits $5,451,672 $35,493 2.64% $5,353,498 $38,001 2.82% $5,005,853 $37,698 3.05%Time deposits 1,208,298 11,061 3.71% 1,277,865 12,483 3.88% 1,204,593 12,690 4.27%Short-term borrowings 3,244 27 3.36% 2,884 28 3.85% 1,839 18 3.97%Federal Home Loan Bank advances 41,827 297 2.84% 188,209 2,130 4.43% 177,883 1,996 4.49%Other borrowings 107,416 1,167 4.35% 122,665 1,812 5.90% — — N/ASubordinated notes 234,155 3,920 6.70% 234,060 4,001 6.84% 233,525 3,602 6.17%Junior subordinated debentures 49,002 687 5.61% 48,969 681 5.44% 48,871 684 5.60%Total interest-bearing liabilities $7,095,614 $52,652 3.00% $7,228,150 $59,136 3.25% $6,672,564 $56,688 3.44% Net interest income (1) $76,289 $79,631 $69,498 Net interest margin (2) 3.17% 3.06% 2.95%Net interest margin TEY (Non-GAAP) (1) (2) (3) 3.58% 3.57% 3.42%Cost of funds (4) 2.64% 2.86% 3.02%
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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)See “Select Financial Data – Subsidiaries” for a breakdown of amortization/accretion included in net interest margin for each period presented.(3)TEY: Tax equivalent yield. See GAAP to Non-GAAP reconciliations.(4)Cost of funds includes the effect of noninterest-bearing deposits.Consolidated Financial Highlights
(Unaudited) As of March 31, December 31, September 30, June 30, March 31, 2026
2025
2025
2025
2025
(dollars in thousands) ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES Beginning balance $90,127 $88,770 $88,732 $90,354 $89,841 Change in ACL for transfer of loans to LHFS (3,450) — — — — Provision for credit losses 2,688 5,562 4,225 4,667 4,743 Loans/leases charged off (4,447) (4,469) (4,746) (6,490) (4,944)Recoveries on loans/leases previously charged off 541 264 559 201 714 Ending balance $ 85,459 $ 90,127 $ 88,770 $ 88,732 $ 90,354 NONPERFORMING ASSETS Nonaccrual loans/leases $41,823 $42,212 $42,167 $42,482 $47,259 Accruing loans/leases past due 90 days or more 35 85 43 7 356 Total nonperforming loans/leases 41,858 42,297 42,210 42,489 47,615 Other real estate owned 540 540 — 62 402 Other repossessed assets 500 500 510 113 122 Total nonperforming assets $ 42,898 $ 43,337 $ 42,720 $ 42,664 $ 48,139 ASSET QUALITY RATIOS Nonperforming assets / total assets 0.45% 0.45% 0.45% 0.46% 0.53%ACL for loans and leases / total loans/leases held for investment 1.26% 1.26% 1.24% 1.28% 1.32%ACL for loans and leases / nonperforming loans/leases 204.16% 213.08% 210.31% 208.84% 189.76%Net charge-offs as a % of average loans/leases 0.05% 0.06% 0.06% 0.09% 0.06% INTERNALLY ASSIGNED RISK RATING (1) Special mention $82,819 $74,765 $76,750 $68,621 $55,327 Substandard (2) 63,491 64,142 67,319 81,040 85,033 Doubtful (2) — — — — — Total Criticized loans (3) $ 146,310 $ 138,907 $ 144,069 $ 149,661 $ 140,360 Classified loans as a % of total loans/leases (2) 0.87% 0.89% 0.94% 1.17% 1.25%Total Criticized loans as a % of total loans/leases (3) 2.01% 1.94% 2.01% 2.16% 2.06%
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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 March 31, December 31, March 31,SELECT FINANCIAL DATA - SUBSIDIARIES 2026
2025
2025
(dollars in thousands) TOTAL ASSETS Quad City Bank and Trust (1) $3,105,984 $2,705,319 $2,777,634 m2 Equipment Finance, LLC 155,889 181,761 276,096 Cedar Rapids Bank and Trust 2,848,359 2,855,840 2,617,143 Community State Bank 1,740,480 1,717,264 1,583,646 Guaranty Bank 2,418,895 2,411,570 2,331,944 TOTAL DEPOSITS Quad City Bank and Trust (1) $2,726,530 $2,302,234 $2,397,047 Cedar Rapids Bank and Trust 1,979,934 1,983,600 1,883,952 Community State Bank 1,313,221 1,341,915 1,238,307 Guaranty Bank 1,775,974 1,833,590 1,840,774 TOTAL LOANS & LEASES Quad City Bank and Trust (1) $2,048,394 $2,030,858 $2,041,181 m2 Equipment Finance, LLC 160,877 187,642 284,983 Cedar Rapids Bank and Trust 2,020,322 1,988,870 1,790,065 Community State Bank 1,317,469 1,281,036 1,197,005 Guaranty Bank 1,899,315 1,866,190 1,794,915 TOTAL LOANS & LEASES / TOTAL DEPOSITS Quad City Bank and Trust (1) 75% 88% 85%Cedar Rapids Bank and Trust 102% 100% 95%Community State Bank 100% 95% 97%Guaranty Bank 107% 102% 98% TOTAL LOANS & LEASES / TOTAL ASSETS Quad City Bank and Trust (1) 66% 75% 73%Cedar Rapids Bank and Trust 71% 70% 68%Community State Bank 76% 75% 76%Guaranty Bank 79% 77% 77% ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT Quad City Bank and Trust (1) 1.30% 1.31% 1.44%m2 Equipment Finance, LLC 4.96% 4.84% 4.37%Cedar Rapids Bank and Trust 1.32% 1.32% 1.38%Community State Bank 1.04% 1.06% 1.08%Guaranty Bank 1.32% 1.27% 1.30% RETURN ON AVERAGE ASSETS (ANNUALIZED) Quad City Bank and Trust (1) 1.33% 1.31% 1.31%Cedar Rapids Bank and Trust 2.49% 3.55% 2.14%Community State Bank 1.36% 1.05% 1.07%Guaranty Bank 1.24% 1.09% 0.72% NET INTEREST MARGIN PERCENTAGE (2) Quad City Bank and Trust (1) 3.24% 3.35% 3.45%Cedar Rapids Bank and Trust 3.99% 4.03% 4.00%Community State Bank 3.91% 3.90% 3.78%Guaranty Bank 3.45% 3.35% 3.05%
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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 March 31, December 31, September 30, June 30, March 31, GAAP TO NON-GAAP RECONCILIATIONS 2026
2025
2025
2025
2025
(dollars in thousands, except per share data)TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1) Stockholders’ equity (GAAP) $1,122,464 $1,112,311 $1,086,915 $1,050,554 $1,022,747 Less: Intangible assets 146,169 146,675 147,672 148,333 148,995 Tangible common equity (non-GAAP) $976,295 $965,636 $939,243 $902,221 $873,752 Total assets (GAAP) $9,613,695 $9,498,194 $9,487,935 $9,179,767 $9,082,188 Less: Intangible assets 146,169 146,675 147,672 148,333 148,995 Tangible assets (non-GAAP) $9,467,526 $9,351,519 $9,340,263 $9,031,434 $8,933,193 Tangible common equity to tangible assets ratio (non-GAAP) 10.31% 10.33% 10.06% 9.99% 9.78% TANGIBLE BOOK VALUE PER SHARE (1) Common shares outstanding 16,496,102 16,690,603 16,838,866 16,934,698 16,920,363 Tangible book value per common share (Non-GAAP) $ 59.18 $ 57.86 $ 55.78 $ 53.28 $ 51.64
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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 March 31, December 31, September 30, June 30, March 31,ADJUSTED NET INCOME (1) 2026
2025
2025
2025
2025
(dollars in thousands, except per share data)Net income (GAAP) $33,383 $35,664 $36,714 $29,019 $25,797 Less non-core items (post-tax) (2): Income: Fair value loss on derivatives, net (13) (88) (223) (397) (156)Total adjusted income (non-GAAP) $(13) $(88) $(223) $(397) $(156) Expense: Losses on debt extinguishment, net — 1,551 — — — Total adjusted expense (non-GAAP) $— $1,551 $— $— $— Adjusted net income (non-GAAP) (1) $ 33,396 $ 37,303 $ 36,937 $ 29,416 $ 25,953 ADJUSTED EARNINGS PER COMMON SHARE (1) Adjusted net income (non-GAAP) (from above) $33,396 $37,303 $36,937 $29,416 $25,953 Weighted average common shares outstanding 16,651,808 16,756,717 16,919,785 16,928,542 16,900,785 Weighted average common and common equivalent shares outstanding 16,741,541 16,858,506 17,015,730 17,006,282 17,013,992 Adjusted earnings per common share (non-GAAP): Basic $ 2.01 $ 2.23 $ 2.18 $ 1.74 $ 1.54 Diluted $ 1.99 $ 2.21 $ 2.17 $ 1.73 $ 1.53 ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1) Adjusted net income (non-GAAP) (from above) $33,396 $37,303 $36,937 $29,416 $25,953 Average Assets $9,550,010 $9,758,848 $9,354,411 $9,155,473 $9,015,439 Adjusted return on average assets (annualized) (non-GAAP) 1.40% 1.53% 1.58% 1.29% 1.15%Adjusted return on average equity (annualized) (non-GAAP) 11.76% 13.37% 13.73% 11.30% 10.20% NET INTEREST MARGIN TEY (3) Net interest income (GAAP) $67,438 $68,354 $64,799 $62,082 $59,986 Plus: Tax equivalent adjustment (4) 8,851 11,277 10,864 10,090 9,513 Net interest income - tax equivalent (non-GAAP) $76,289 $79,631 $75,663 $72,172 $69,499 Average earning assets $8,640,613 $8,872,022 $8,575,514 $8,377,361 $8,241,035 Net interest margin (GAAP) 3.17% 3.06% 3.00% 2.97% 2.95%Net interest margin TEY (non-GAAP) 3.58% 3.57% 3.51% 3.46% 3.42% EFFICIENCY RATIO (5) Noninterest expense (GAAP) $52,125 $62,852 $56,587 $49,583 $46,539 Net interest income (GAAP) $67,438 $68,354 $64,799 $62,082 $59,986 Noninterest income (GAAP) 22,952 38,665 36,651 22,115 16,892 Total income $90,390 $107,019 $101,450 $84,197 $76,878 Efficiency ratio (noninterest expense/total income) (non-GAAP) 57.67% 58.73% 55.78% 58.89% 60.54%Adjusted efficiency ratio (adjusted noninterest expense/adjusted total income) (non-GAAP) 57.66% 56.84% 55.62% 58.54% 60.38%
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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.