third quarter of 2026
Filed Oct 20, 2026QCR Holdings, Inc. Announces Net Income of $36.4 million for the Third Quarter of 2026
Record diluted EPS of $2.21, linked-quarter net interest margin expansion, $16.9 million of capital markets revenue, loan growth excluding m2 runoff, and improved asset quality supported results. Deposits declined and noninterest expense increased from the prior quarter.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income, quarter ended September 30, 2026GAAP | $36.43M | – | – |
| Adjusted net income, quarter ended September 30, 2026non-GAAP | $36.43M | – | – |
| Diluted EPS, quarter ended September 30, 2026GAAP | $2.21 | – | – |
| Adjusted diluted EPS, quarter ended September 30, 2026non-GAAP | $2.21 | – | – |
| Basic EPS, quarter ended September 30, 2026GAAP | $2.23 | – | – |
| Net interest income, quarter ended September 30, 2026GAAP | $68.69M | an increase of $0.8 million, or 5% annualized | – |
| Net interest income, nine months ended September 30, 2026GAAP | $204.0M | – | – |
| Net interest margin, quarter ended September 30, 2026GAAP | 3.12% | – | – |
| Net interest margin TEY, quarter ended September 30, 2026non-GAAP | 3.58% | expanded 3 basis points | – |
| Total noninterest income, quarter ended September 30, 2026GAAP | $30.48M | – | – |
| Total noninterest income, nine months ended September 30, 2026GAAP | $82.86M | – | – |
| Total income, quarter ended September 30, 2026GAAP | $99.17M | – | – |
| Total noninterest expense, quarter ended September 30, 2026GAAP | $54.73M | – | – |
| Total noninterest expense, nine months ended September 30, 2026GAAP | $160.0M | – | expense growth of 4.8% |
| Efficiency ratio, quarter ended September 30, 2026non-GAAP | 55.18% | – | – |
| Net income before income taxes, quarter ended September 30, 2026GAAP | $40.00M | – | – |
| Federal and state income tax expense, quarter ended September 30, 2026GAAP | $3.56M | – | – |
| Effective tax rate, quarter ended September 30, 2026GAAP | 8.91% | – | – |
| Return on average assets, quarter ended September 30, 2026GAAP | 1.52% | – | – |
| Total assets, as of September 30, 2026GAAP | $9.80B | – | – |
| Loans/leases receivable held for investment, as of September 30, 2026GAAP | $7.20B | increased $167.0 million, or 9% annualized | – |
| Total deposits, as of September 30, 2026GAAP | $7.20B | – | – |
| Total borrowings, as of September 30, 2026GAAP | $1.02B | – | – |
| Cash and due from banks, as of September 30, 2026GAAP | $89.27M | – | – |
| Total nonperforming assets, as of September 30, 2026GAAP | $38M | a decrease of $1.5 million | – |
| Nonperforming assets / total assets, as of September 30, 2026GAAP | 0.39% | – | – |
| Provision for credit losses, quarter ended September 30, 2026GAAP | $4.45M | – | – |
| Net charge-offs as a % of average loans/leases, quarter ended September 30, 2026GAAP | 0.04% | – | – |
| ACL for loans and leases / total loans/leases held for investment, as of September 30, 2026GAAP | 1.23% | a decline of 1 basis point | – |
| Total criticized loans, as of September 30, 2026other | $120.4M | decreased $13.8 million | – |
| Tangible book value per common share, as of September 30, 2026non-GAAP | $61.79 | – | 11% year-over-year growth |
| Tangible common equity to tangible assets ratio, as of September 30, 2026non-GAAP | 10.43% | decreased 28 basis points | – |
| Common equity tier 1 ratio, as of September 30, 2026other | 11.01% | increased 33 basis points | – |
| Total risk-based capital ratio, as of September 30, 2026other | 14.50% | increased 37 basis points | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Capital markets revenueSustained demand for affordable housing, the LIHTC team, and longstanding developer relationships. | $16.90M | up 10% on a linked-quarter basis | – |
| Wealth management revenueMarket performance, continued expansion of client relationships, and growth in assets under management. | $5.7M | consistent with the prior quarter | increased 12% |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
fourth quarter of 2026 outlook
- Operating expenses$54 to $57 million of noninterest expense
- Tax rate8% to 10% effective tax rate
- NoteGross loan growth of 10% to 15% annualized.
- NoteRelatively static fourth quarter NIM TEY, assuming no additional Federal Reserve rate changes.
- NoteCapital markets revenue of $18 to $20 million in the fourth quarter.
- NoteCapital markets revenue of $60 to $70 million over the next four quarters.
Capital returns
- Repurchased $9.5 million of common stock, or 94,861 shares of common stock, during the third quarter of 2026.
- Common stock cash dividends declared were $2,457 (dollars in thousands) for the quarter ended September 30, 2026.
- Since resuming share repurchase activity in 2025, the Company has repurchased more than 770 thousand shares, returning $65.5 million of capital to shareholders.
- The Company reported two dividend increases to-date in 2026.
What drove it
- Total loans increased $167.0 million, or 9% annualized from the second quarter; growth was $189.7 million or 11% annualized excluding planned m2 portfolio runoff.
- NIM TEY expanded to 3.58% from 3.55%, supported by disciplined funding costs and higher average noninterest-bearing deposits.
- Capital markets revenue was $16.9 million, supported by affordable-housing demand and LIHTC activity.
- Average noninterest-bearing deposits increased $39.2 million or 15% annualized.
- The Company cited loan payoffs, credit upgrades, and charge-offs across criticized borrower relationships for asset-quality improvement.
Concerns
- Total deposits declined to $7.2 billion from $7.4 billion at June 30, 2026, with timing-related correspondent deposit outflows cited.
- Total borrowings increased to $1,021,344 (dollars in thousands) from $660,315 (dollars in thousands) at June 30, 2026.
- Noninterest expense increased to $54.7 million from $53.2 million, driven by occupancy and equipment expense, salary and employee benefits, and advertising and marketing timing.
- Several capital-markets transactions expected to close in the third quarter shifted into the fourth quarter.
- Tangible common equity to tangible assets fell to 10.43% from 10.71%, reflecting a $19.4 million reduction in accumulated other comprehensive income from unrealized investment-portfolio losses and continued share repurchases.
What to watch
- Fourth-quarter gross loan growth guidance of 10% to 15% annualized.
- Fourth-quarter capital markets revenue guidance of $18 to $20 million and the $60 to $70 million target over the next four quarters.
- Whether NIM TEY remains relatively static under the Company's assumption of no additional Federal Reserve rate changes.
- Deposit repricing, customer behavior, funding mix, and competition for deposits.
- Fourth-quarter noninterest expense guidance of $54 to $57 million and effective tax rate guidance of 8% to 10%.
Balance sheet and cash flow
- Total assets were $9,795,320 (dollars in thousands) as of September 30, 2026.
- Total deposits were $7,203,201 (dollars in thousands), compared to $7,417,334 (dollars in thousands) at June 30, 2026.
- Core deposits were $7,038,334 (dollars in thousands), compared to $7,262,510 (dollars in thousands) at June 30, 2026.
- Total borrowings were $1,021,344 (dollars in thousands), compared to $660,315 (dollars in thousands) at June 30, 2026.
- Cash and due from banks were $89,267 (dollars in thousands).
- The filing does not report operating cash flow, capital expenditures, or free cash flow.
Analysis
QCR Holdings reported third-quarter net income of $36,434 (dollars in thousands) and record diluted EPS of $2.21. Net income was $36,251 (dollars in thousands) in the second quarter and $36,714 (dollars in thousands) in the third quarter of 2025. The quarterly result was supported by net interest income of $68,692 (dollars in thousands), total noninterest income of $30,482 (dollars in thousands), and an 8.91% effective tax rate.
Balance-sheet loan growth accelerated despite the planned runoff of the m2 portfolio. Loans/leases receivable held for investment were $7,197,454 (dollars in thousands), versus $7,029,199 (dollars in thousands) at June 30, 2026. The Company said total loans increased $167.0 million, or 9% annualized, and growth was $189.7 million or 11% annualized excluding m2 runoff. Management also described capital recycling through LIHTC loan sales and securitizations, stating that it generated $67.5 million of capital markets revenue and increased net interest income by $24.3 million or 10% compared with the preceding 12-month period.
Margin and fee income were the principal earnings supports. GAAP net interest margin rose to 3.12% from 3.10%, while NIM TEY increased to 3.58% from 3.55%. Capital markets revenue was $16,901 (dollars in thousands), compared with $15,392 (dollars in thousands) in the prior quarter. Wealth management revenue totaled $5.7 million and increased 12% from the third quarter of 2025. Total noninterest expense increased to $54,726 (dollars in thousands) from $53,157 (dollars in thousands), while the efficiency ratio was 55.18%.
Credit metrics improved. Total nonperforming assets declined to $38,000 (dollars in thousands) from $39,510 (dollars in thousands), and the nonperforming-assets-to-total-assets ratio improved to 0.39%. Total criticized loans decreased to $120,404 (dollars in thousands) from $134,225 (dollars in thousands). The provision for credit losses was $4,452 (dollars in thousands), versus $4,708 (dollars in thousands) in the prior quarter, and net charge-offs as a percentage of average loans/leases were 0.04%.
Capital returns continued, with $9.5 million used to repurchase 94,861 shares during the quarter. Tangible book value per common share rose to $61.79, while the tangible common equity to tangible assets ratio fell to 10.43% from 10.71%. For the fourth quarter, management reaffirmed gross loan growth of 10% to 15% annualized, noninterest expense of $54 to $57 million, capital markets revenue of $18 to $20 million, and an effective tax rate of 8% to 10%. It also guided to a relatively static NIM TEY assuming no additional Federal Reserve rate changes.
Management, verbatim
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.
Todd Gipple, President and Chief Executive Officer
Our NIM TEY 1 expanded 3 basis points from the second quarter of 2026, exceeding our guidance and driving solid net interest income growth.
Nick Anderson, Chief Financial Officer
Capital markets revenue remained strong, reflecting sustained demand for affordable housing, the strength of our LIHTC team, and longstanding developer relationships.
Todd Gipple, President and Chief Executive Officer
Not in the filing
stated, not guessed- A consolidated revenue line labeled total revenue is not reported.
- Gross margin is not reported.
- Operating income is not reported.
- Operating cash flow is not reported.
- Capital expenditures are not reported.
- Free cash flow is not reported.
- No prior-release outlook was provided for comparison against reported results.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.