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
2025
Net Income
$
33.4
$
35.7
$
25.8
Diluted EPS
$
1.99
$
2.12
$
1.52
Adjusted Net Income1
$
33.4
$
37.3
$
26.0
Adjusted 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 DetailsThe 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 UsQCR 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.
Endnotes1Adjusted 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 NeumannVP, Investor Relations(309) 743-7753[email protected]
QCR Holdings, Inc.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
_____________________
(1)
Loans with a fair value of $522.9 million have been identified for LIHTC securitization or LIHTC loan sales and are included in LHFS at March 31, 2026. There were none for December 31, 2025, September 30, 2025, June 30, 2025, and March 31, 2025.
(2)
Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.6 billion at March 31, 2026.
(3)
Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company.
QCR Holdings, Inc.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
