Third Quarter 2026 Highlights

• Record diluted earnings per share (“EPS”) of $2.21 with net income of $36.4 million and a 1.52% return on average assets (“ROAA”)
• Expanded net interest margin (“NIM”) on a tax-equivalent yield (“TEY”) basis¹ 3 basis points to 3.58%
• Strong capital markets revenue of $16.9 million, up 10% on a linked-quarter basis
• Solid wealth management revenue of $5.7 million, up 12% year-over-year
• Robust loan growth of 11% annualized on a linked-quarter basis, excluding m2 Equipment Finance (“m2”) portfolio runoff
• Excellent asset quality with nonperforming assets (“NPAs”) improving to 0.39% of total assets, the lowest level in two years
• Opportunistic share repurchases of $9.5 million, or 94,861 shares of common stock, during the quarter
  

MOLINE, Ill., Oct. 20, 2026 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $36.4 million and diluted EPS of $2.21 for the third quarter of 2026, compared to quarterly net income of $36.3 million and diluted EPS of $2.19 for the second quarter of 2026, and $36.7 million and $2.16 for the third quarter of 2025.

“We delivered record EPS this quarter with net income of $36.4 million, supported by margin expansion, robust loan growth, increased capital markets revenue, solid wealth management revenue, and further improvement in asset quality to the strongest level in several years,” said Todd Gipple, President and Chief Executive Officer. “Together, our results underscore the strength of our diversified business model, continued momentum in both low-income housing tax credit (“LIHTC”) and traditional lending, and disciplined execution across our franchise.”

Robust Loan Growth

In the third quarter of 2026, total loans increased $167.0 million, or 9% annualized from the second quarter. Loan growth was $189.7 million or 11% annualized when excluding the planned m2 portfolio runoff. Total loans were $7.2 billion on September 30, 2026, consistent with September 30, 2025 as the Company sold or securitized $730.0 million of LIHTC loans and an additional $105.6 million of m2 loans were runoff and not replaced.

“Over the past 12 months, we have strategically sold and securitized loans to recycle capital, support additional LIHTC originations, and generate attractive fee income without requiring corresponding balance sheet growth. By recycling this capital into new originations, we generated $67.5 million of capital markets revenue while increasing net interest income by $24.3 million or 10% compared to the preceding 12-month period. This demonstrates our ability to grow both net interest income and capital markets revenue while operating with a smaller balance sheet and deploying capital more efficiently,” said Mr. Gipple.

“With solid loan production trends and a strong pipeline heading into year-end, we are reaffirming our gross loan growth guidance of 10% to 15% annualized for the fourth quarter of 2026,” added Mr. Gipple.

Net Interest Income Growth Supported by Margin Expansion

Net interest income for the third quarter of 2026 was $68.7 million, an increase of $0.8 million, or 5% annualized, from the second quarter of 2026. NIM was 3.12% and NIM TEY¹ was 3.58% for the third quarter, as compared to 3.10% and 3.55%, respectively, for the prior quarter. The linked-quarter increase in net interest income was driven by margin expansion supported by disciplined funding costs and higher average noninterest-bearing deposits. Average earning assets declined $44.5 million, reflecting strategic LIHTC loan offtakes in the second quarter with strong third quarter loan and investment growth partially offsetting the reduction.

“Our NIM TEY¹ expanded 3 basis points from the second quarter of 2026, exceeding our guidance and driving solid net interest income growth. We expect the Federal Reserve’s September rate increase to be slightly accretive to NIM in the near-term, as variable-rate assets and new loan and investment growth reprice faster than deposits. The resulting benefit will hinge on our deposit repricing, customer behavior, and the shape of the yield curve. We remain focused on maintaining deposit pricing discipline and managing funding costs carefully,” said Nick Anderson, Chief Financial Officer.

“Looking ahead, we will continue to balance disciplined deposit pricing with the need to retain and grow core relationships. While our historical lag in deposit repricing should allow us to retain some near-term benefit from higher rates, continued competition for deposits and changes in our funding mix are expected to largely offset that benefit. Accordingly, assuming no additional Federal Reserve rate changes, we are guiding to a relatively static fourth quarter NIM TEY¹,” added Mr. Anderson.

Capital Markets and Wealth Management Revenue Remain Strong

Noninterest income for the third quarter of 2026 was $30.5 million, up from $29.4 million in the second quarter of 2026. The Company generated $16.9 million of capital markets revenue in the third quarter of 2026, compared to $15.4 million in the prior quarter, which was impacted by a $1.3 million loss from the Freddie Mac LIHTC securitization.

Wealth management revenue totaled $5.7 million for the quarter, consistent with the prior quarter, benefitting from market performance, continued expansion of client relationships, and growth in assets under management. Compared with the third quarter of 2025, wealth management revenue increased 12%. “Our wealth management business continues to deliver strong results, reflecting sustained new relationship growth and consistent growth in annual revenue,” said Mr. Gipple.

“Capital markets revenue remained strong, reflecting sustained demand for affordable housing, the strength of our LIHTC team, and longstanding developer relationships. While several transactions expected to close in the third quarter shifted into the fourth quarter, this business continues to demonstrate consistent performance over time. We are reaffirming our guidance for $60 to $70 million of capital markets revenue over the next four quarters, including an expected $18 to $20 million in the fourth quarter,” added Mr. Gipple.

Expense Discipline Supports Operating Leverage

Noninterest expense for the third quarter of 2026 totaled $54.7 million, compared to $53.2 million for the second quarter of 2026. The linked-quarter increase was driven by occupancy and equipment expense, salary and employee benefits, and the timing of advertising and marketing expenses. Occupancy and equipment expense included costs related to the third core system conversion completed in early October 2026. Salary and employee benefits reflected higher incentive compensation driven by strong full-year performance to date.

“Expenses were near the lower end of our guidance range while we continued to invest in digital transformation and growth initiatives,” said Mr. Anderson. “Our efficiency ratio¹ remained strong at 55.2%, reflecting our continued focus on operating leverage. Year-to-date, revenue has increased 9.3%, compared with expense growth of 4.8%, demonstrating continued operating leverage. Expenses remain well controlled, highlighting our disciplined execution of our 9/6/5 strategic model, which targets annual noninterest expense growth below 5%,” added Mr. Anderson.

For the fourth quarter of 2026, the Company expects noninterest expense to remain well controlled, assuming capital markets revenue and loan growth are within the guidance ranges and reflecting continued investments in digital transformation initiatives. The Company is reaffirming its noninterest expense guidance range of $54 to $57 million for the fourth quarter of 2026.

Strongest Asset Quality in Years

NPAs totaled $38.0 million at the end of the third quarter of 2026, a decrease of $1.5 million from the prior quarter, improving the NPA to total assets ratio to 0.39%, the lowest level since 2024. Total criticized loans also decreased $13.8 million on a linked-quarter basis to $120.4 million, or 1.67% of total loans and leases, the lowest percentage since 2019. The improvement reflected a combination of loan payoffs, credit upgrades, and charge-offs across several criticized borrower relationships.

The Company recorded a total provision for credit losses of $4.5 million in the third quarter, compared to $4.7 million in the second quarter. Net charge-offs were $3.1 million during the third quarter of 2026, a decline of $0.2 million from the prior quarter, and the lowest level recorded all year 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 was 1.23%, a decline of 1 basis point from the prior quarter.

Noninterest-Bearing Deposit Growth Despite Timing-Related Correspondent Deposit Outflows

Total deposits were $7.2 billion at September 30, 2026, compared to $7.4 billion at June 30, 2026. Core deposits excluding brokered deposits totaled $7.0 billion compared to $7.3 billion at June 30, 2026, while brokered deposits remained at 2% of total deposits. Noninterest-bearing deposits increased slightly, while average noninterest-bearing deposits increased $39.2 million or 15% annualized.

“We remain focused on optimizing our deposit mix and continued growth in relationship-based core deposits across our markets,” said Mr. Anderson. “We also achieved our fourth consecutive quarter of noninterest-bearing deposit growth, demonstrating continued progress on this key strategic priority. While we experienced some outflows of correspondent deposit balances during the quarter largely due to timing, those deposits have since returned to our balance sheet along with additional deposit growth shortly after the quarter ended,” added Mr. Anderson.

Tangible Book Value Growth and Disciplined Capital Management

Tangible book value (“TBV”) per share¹ increased to $61.79 at September 30, 2026, representing 11% year-over-year growth while at the same time returning capital to shareholders through the repurchase of approximately 650 thousand shares of common stock and two dividend increases to-date in 2026.

As of September 30, 2026, the tangible common equity to tangible assets ratio¹ decreased 28 basis points to 10.43% from 10.71% in the prior quarter. The decrease primarily reflected a $19.4 million reduction in accumulated other comprehensive income from unrealized losses on the investment portfolio as market interest rates increased, as well as the impact of continued share repurchases. These factors were partially offset by strong earnings.

The common equity tier 1 ratio increased 33 basis points to 11.01% and the total risk-based capital ratio increased 37 basis points to 14.50%. These quarterly changes reflect the combined impact of strong earnings and share repurchases during the quarter, partially offset by strong loan and investment growth. By comparison, these ratios were 10.68% and 14.13%, respectively, as of June 30, 2026.

Continued Opportunistic Share Repurchases

The Company repurchased $9.5 million of common stock during the third quarter of 2026, reflecting confidence in the Company’s long-term outlook. Since resuming share repurchase activity in 2025, the Company has repurchased more than 770 thousand shares, returning $65.5 million of capital to shareholders at an attractive multiple relative to TBV¹. The share repurchase program remains an important capital management tool, providing flexibility to return capital to shareholders while maintaining a strong capital position.

Efficient Tax Management Supports Strong Earnings

The Company continued to benefit from a well-managed effective tax rate, reflecting disciplined tax planning and execution across the organization. This consistent approach enhances earnings quality and supports the Company’s ability to reinvest in growth, maintain strong capital levels, and return capital to shareholders. The Company expects its effective tax rate to remain in the range of 8% to 10% for the fourth quarter of 2026, assuming a revenue mix in line with its guidance ranges.

Conference Call Details
The Company will host an earnings call/webcast tomorrow, October 21, 2026, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253; Canada toll-free 855-669-9657). Participants should request to join the QCR Holdings, Inc. call. Participants will be required to state their name and company upon entering the call. The event will be available for replay through October 28, 2026. The replay access information is 855-669-9658 (international 412-317-0088); access code 5670385. 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 September 30, 2026, the Company had $9.8 billion in assets, $7.2 billion in loans and $7.2 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), 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 such as the September increase in the benchmark federal funds rate by the Federal Reserve; (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
dneumann@qcrh.com

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