QCR Holdings Q3 2026 profit slips to $36.4M
QCRH reaffirmed fourth-quarter guidance for annualized gross loan growth of 10% to 15%, while reporting improved asset-quality measures.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
QCR Holdings, Inc. (QCRH) reported third-quarter 2026 net income of $36.4 million and diluted EPS of $2.21, compared with third-quarter 2025 net income of $36.7 million and diluted EPS of $2.16. Net interest income was $68.7 million and net interest margin was 3.12%. Total loans reached $7.2 billion at September 30, 2026, up $167.0 million from the prior quarter. Over the 12 months, the company sold or securitized $730.0 million of LIHTC loans and $105.6 million of m2 loans ran off and were not replaced.
Nonperforming assets were $38.0 million, or 0.39% of assets, and criticized loans were $120.4 million, or 1.67% of loans. Deposits were $7.2 billion at September 30, down from $7.4 billion at June 30; the company said timing-related correspondent deposit outflows had returned, with additional growth shortly after quarter-end. QCR reaffirmed fourth-quarter gross loan growth guidance of 10% to 15% annualized, capital-markets revenue of $60 to $70 million over the next four quarters (including expected $18 to $20 million in Q4), and noninterest expense guidance of $54 to $57 million in Q4. It guided to relatively static Q4 NIM TEY, assuming no additional Federal Reserve rate changes.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointNine-month net income rose to $106.1 million from $91.5 million.
- Moderate pointNine-month net interest income rose to $204.0 million from $186.9 million.
Negative
- None.
Filing Explained
QCR Holdings reports completed third-quarter buybacks of
8-K Event Classification
Key Figures
Key Terms
low-income housing tax credit financial
Net interest margin TEY financial
criticized loans financial
core deposits financial
Earnings Snapshot
For fourth-quarter 2026, gross loan growth guidance is 10% to 15% annualized; capital-markets revenue guidance is $60 to $70 million over the next four quarters, including expected revenue of $18 to $20 million in Q4; noninterest expense guidance is $54 to $57 million; and NIM TEY is expected to be relatively static, assuming no additional Federal Reserve rate changes.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much did QCRH earn in the third quarter of 2026?
What effective tax rate does QCRH expect for the fourth quarter of 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event Reported):
(Exact Name of Registrant as Specified in Charter)
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) |
(Address of Principal Executive Offices) (Zip Code) | ||
(
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | ||
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On October 20, 2026, QCR Holdings, Inc. (the “Company”) issued a press release disclosing financial results for the quarter ended September 30, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto is being “furnished” and will not, except to the extent required by applicable law or regulation, be deemed “filed” by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor will any of such information or exhibits be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
99.1 | Press Release dated October 20, 2026. |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| QCR Holdings, Inc. | |
|
|
|
Date: October 20, 2026 | By: | /s/ Todd A. Gipple |
|
| Todd A. Gipple |
|
| President and Chief Executive Officer |
Exhibit 99.1
PRESS RELEASE | FOR IMMEDIATE RELEASE |
QCR Holdings, Inc. Announces Net Income of $36.4 million
for the Third Quarter of 2026
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, IL, October 20, 2026 – 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.
| | For the Quarter Ended | |||||||
| | September 30, | | June 30, | | September 30, | |||
$ in millions (except per share data) | | 2026 | | 2026 | | 2025 | |||
Net Income | | $ | 36.4 | | $ | 36.3 | | $ | 36.7 |
Diluted EPS | | $ | 2.21 | | $ | 2.19 | | $ | 2.16 |
Adjusted Net Income1 | | $ | 36.4 | | $ | 36.3 | | $ | 36.9 |
Adjusted Diluted EPS1 | | $ | 2.21 | | $ | 2.19 | | $ | 2.17 |
“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.
2
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
3
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
4
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
5
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
| | As of | |||||||||||||
| | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | |||||
| | 2026 | | 2026 | | 2026 | | 2025 | | 2025 | |||||
| | | (dollars in thousands) | ||||||||||||
CONDENSED BALANCE SHEET | | | | | | | | | | | | | | | |
Cash and due from banks | | $ | 89,267 | | $ | 111,342 | | $ | 80,038 | | $ | 76,494 | | $ | 77,581 |
Federal funds sold and interest-bearing deposits | | | 97,433 | | | 80,408 | | | 39,290 | | | 76,399 | | | 84,738 |
Securities, net of allowance for credit losses | | | 1,431,589 | | | 1,401,408 | | | 1,324,750 | | | 1,312,310 | | | 1,308,689 |
Loans receivable held for sale (1) | | | 2,449 | | | 3,731 | | | 524,931 | | | 1,429 | | | 1,457 |
Loans/leases receivable held for investment | | | 7,197,454 | | | 7,029,199 | | | 6,760,569 | | | 7,165,526 | | | 7,177,464 |
Allowance for credit losses | | | (88,424) | | | (87,185) | | | (85,459) | | | (90,127) | | | (88,770) |
Intangibles | | | 6,562 | | | 7,068 | | | 7,574 | | | 8,080 | | | 9,077 |
Goodwill | | | 138,595 | | | 138,595 | | | 138,595 | | | 138,595 | | | 138,595 |
Derivatives | | | 243,882 | | | 211,178 | | | 209,836 | | | 188,409 | | | 202,703 |
Other assets | | | 676,513 | | | 624,899 | | | 613,571 | | | 621,079 | | | 576,401 |
Total assets | | $ | 9,795,320 | | $ | 9,520,643 | | $ | 9,613,695 | | $ | 9,498,194 | | $ | 9,487,935 |
| | | | | | | | | | | | | | | |
Total deposits | | $ | 7,203,201 | | $ | 7,417,334 | | $ | 7,770,850 | | $ | 7,414,198 | | $ | 7,380,068 |
Total borrowings | | | 1,021,344 | | | 660,315 | | | 418,257 | | | 638,541 | | | 706,827 |
Derivatives | | | 262,023 | | | 131,921 | | | 149,836 | | | 137,051 | | | 150,375 |
Other liabilities | | | 156,934 | | | 161,316 | | | 152,288 | | | 196,093 | | | 163,750 |
Total stockholders’ equity | | | 1,151,818 | | | 1,149,757 | | | 1,122,464 | | | 1,112,311 | | | 1,086,915 |
Total liabilities and stockholders’ equity | | $ | 9,795,320 | | $ | 9,520,643 | | $ | 9,613,695 | | $ | 9,498,194 | | $ | 9,487,935 |
| | | | | | | | | | | | | | | |
ANALYSIS OF LOAN PORTFOLIO | | | | | | | | | | | | | | | |
Loan/lease mix: (2) | | | | | | | | | | | | | | | |
Commercial and industrial - revolving | | $ | 450,232 | | $ | 407,419 | | $ | 376,284 | | $ | 384,656 | | $ | 386,674 |
Commercial and industrial - other | | | 1,046,885 | | | 1,080,335 | | | 1,059,148 | | | 1,094,064 | | | 1,107,896 |
Commercial and industrial - other - LIHTC | | | 136,382 | | | 129,578 | | | 237,125 | | | 224,802 | | | 222,772 |
Total commercial and industrial | | | 1,633,499 | | | 1,617,332 | | | 1,672,557 | | | 1,703,522 | | | 1,717,342 |
Commercial real estate, owner occupied | | | 607,424 | | | 589,928 | | | 588,098 | | | 577,352 | | | 586,578 |
Commercial real estate, non-owner occupied | | | 927,205 | | | 966,873 | | | 1,000,673 | | | 1,036,655 | | | 1,053,732 |
Construction and land development | | | 666,961 | | | 630,909 | | | 608,039 | | | 566,891 | | | 515,787 |
Construction and land development - LIHTC | | | 536,506 | | | 574,644 | | | 693,591 | | | 741,531 | | | 1,028,978 |
Multi-family | | | 365,198 | | | 359,993 | | | 355,349 | | | 340,080 | | | 316,353 |
Multi-family - LIHTC | | | 1,675,395 | | | 1,511,247 | | | 1,582,573 | | | 1,429,251 | | | 1,187,243 |
Direct financing leases | | | 5,610 | | | 6,382 | | | 7,947 | | | 9,533 | | | 11,090 |
1-4 family real estate | | | 614,717 | | | 613,664 | | | 618,973 | | | 603,683 | | | 599,838 |
Consumer | | | 167,388 | | | 161,958 | | | 157,700 | | | 158,457 | | | 161,980 |
Total loans/leases | | $ | 7,199,903 | | $ | 7,032,930 | | $ | 7,285,500 | | $ | 7,166,955 | | $ | 7,178,921 |
Less allowance for credit losses | | | 88,424 | | | 87,185 | | | 85,459 | | | 90,127 | | | 88,770 |
Net loans/leases | | $ | 7,111,479 | | $ | 6,945,745 | | $ | 7,200,041 | | $ | 7,076,828 | | $ | 7,090,151 |
| | | | | | | | | | | | | | | |
ANALYSIS OF SECURITIES PORTFOLIO | | | | | | | | | | | | | | | |
Securities mix: | | | | | | | | | | | | | | | |
U.S. government sponsored agency securities | | $ | 13,356 | | $ | 13,928 | | $ | 15,059 | | $ | 16,024 | | $ | 14,208 |
Municipal securities | | | 1,144,374 | | | 1,126,055 | | | 1,081,102 | | | 1,081,274 | | | 1,085,669 |
Residential mortgage-backed and related securities | | | 106,133 | | | 88,515 | | | 86,222 | | | 68,855 | | | 57,108 |
Asset backed securities | | | 3,651 | | | 3,769 | | | 4,076 | | | 4,439 | | | 4,918 |
Other securities | | | 48,307 | | | 53,456 | | | 55,845 | | | 58,143 | | | 63,824 |
Trading securities (3) | | | 116,050 | | | 115,967 | | | 82,728 | | | 83,857 | | | 83,225 |
Total securities | | $ | 1,431,871 | | $ | 1,401,690 | | $ | 1,325,032 | | $ | 1,312,592 | | $ | 1,308,952 |
Less allowance for credit losses | | | 282 | | | 282 | | | 282 | | | 282 | | | 263 |
Net securities | | $ | 1,431,589 | | $ | 1,401,408 | | $ | 1,324,750 | | $ | 1,312,310 | | $ | 1,308,689 |
| | | | | | | | | | | | | | | |
ANALYSIS OF DEPOSITS | | | | | | | | | | | | | | | |
Deposit mix: | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | $ | 1,023,748 | | $ | 1,022,346 | | $ | 982,696 | | $ | 945,513 | | $ | 931,774 |
Interest-bearing demand deposits | | | 5,189,923 | | | 5,399,818 | | | 5,634,742 | | | 5,196,438 | | | 5,176,364 |
Time deposits | | | 824,663 | | | 840,346 | | | 968,914 | | | 1,035,317 | | | 1,004,980 |
Brokered deposits | | | 164,867 | | | 154,824 | | | 184,498 | | | 236,930 | | | 266,950 |
Total deposits | | $ | 7,203,201 | | $ | 7,417,334 | | $ | 7,770,850 | | $ | 7,414,198 | | $ | 7,380,068 |
| | | | | | | | | | | | | | | |
ANALYSIS OF BORROWINGS | | | | | | | | | | | | | | | |
Borrowings mix: | | | | | | | | | | | | | | | |
Term FHLB advances | | $ | 10,609 | | $ | 10,609 | | $ | 10,609 | | $ | 10,383 | | $ | 145,383 |
Overnight FHLB advances | | | 623,000 | | | 258,000 | | | 15,000 | | | 235,000 | | | 145,000 |
Other borrowings | | | 99,488 | | | 99,430 | | | 107,457 | | | 107,395 | | | 130,609 |
Other short-term borrowings | | | 4,750 | | | 8,907 | | | 1,950 | | | 2,650 | | | 2,850 |
Subordinated notes | | | 234,407 | | | 234,312 | | | 234,217 | | | 234,122 | | | 234,027 |
Junior subordinated debentures | | | 49,090 | | | 49,057 | | | 49,024 | | | 48,991 | | | 48,958 |
Total borrowings | | $ | 1,021,344 | | $ | 660,315 | | $ | 418,257 | | $ | 638,541 | | $ | 706,827 |
| (1) | There were no loans identified for LIHTC securitization or LIHTC loan sales September 30, 2026 and June 30, 2026, $522.9 million identified and included in LHFS at March 31, 2026 and none as of December 31, 2025 and September 30, 2025. |
| (2) | Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.4 billion at September 30, 2026. |
| (3) | Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company. |
6
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
| | For the Quarter Ended | |||||||||||||
| | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | |||||
| | 2026 | | 2026 | | 2026 | | 2025 | | 2025 | |||||
| | | (dollars in thousands, except per share data) | ||||||||||||
INCOME STATEMENT | | | | | | | | | | | | | | | |
Interest income | | $ | 121,573 | | $ | 121,027 | | $ | 120,091 | | $ | 127,491 | | $ | 125,015 |
Interest expense | | | 52,881 | | | 53,111 | | | 52,653 | | | 59,137 | | | 60,216 |
Net interest income | | | 68,692 | | | 67,916 | | | 67,438 | | | 68,354 | | | 64,799 |
Provision for credit losses | | | 4,452 | | | 4,708 | | | 2,454 | | | 5,499 | | | 4,305 |
Net interest income after provision for credit losses | | $ | 64,240 | | $ | 63,208 | | $ | 64,984 | | $ | 62,855 | | $ | 60,494 |
| | | | | | | | | | | | | | | |
Trust fees (1) | | $ | 3,980 | | $ | 4,281 | | $ | 3,894 | | $ | 3,749 | | $ | 3,544 |
Investment advisory and management fees (1) | | | 1,677 | | | 1,551 | | | 1,539 | | | 1,504 | | | 1,488 |
Deposit service fees | | | 2,230 | | | 2,115 | | | 1,973 | | | 2,092 | | | 2,231 |
Gains on sales of residential real estate loans, net | | | 325 | | | 507 | | | 614 | | | 666 | | | 529 |
Capital markets revenue | | | 16,901 | | | 15,392 | | | 10,701 | | | 24,481 | | | 23,832 |
Earnings on bank-owned life insurance | | | 887 | | | 1,025 | | | 931 | | | 888 | | | 952 |
Debit card fees | | | 1,745 | | | 1,752 | | | 1,659 | | | 1,640 | | | 1,648 |
Correspondent banking fees | | | 738 | | | 747 | | | 693 | | | 699 | | | 664 |
Loan related fee income | | | 1,045 | | | 1,066 | | | 950 | | | 930 | | | 846 |
Fair value gain (loss) on derivatives and trading securities | | | 442 | | | 802 | | | (869) | | | 800 | | | 324 |
Other | | | 512 | | | 189 | | | 867 | | | 1,216 | | | 593 |
Total noninterest income | | $ | 30,482 | | $ | 29,427 | | $ | 22,952 | | $ | 38,665 | | $ | 36,651 |
| | | | | | | | | | | | | | | |
Salaries and employee benefits | | $ | 32,803 | | $ | 32,120 | | $ | 31,389 | | $ | 36,898 | | $ | 34,338 |
Occupancy and equipment expense | | | 8,165 | | | 7,342 | | | 7,479 | | | 7,364 | | | 7,363 |
Professional and data processing fees | | | 5,250 | | | 5,597 | | | 5,162 | | | 7,303 | | | 6,741 |
FDIC insurance, other insurance and regulatory fees | | | 1,847 | | | 1,973 | | | 2,072 | | | 2,232 | | | 2,035 |
Loan/lease expense | | | 606 | | | 291 | | | 106 | | | 378 | | | 345 |
Net cost of (income from) and gains/losses on operations of other real estate | | | 24 | | | (11) | | | 16 | | | 36 | | | 3 |
Advertising and marketing | | | 2,143 | | | 1,822 | | | 1,775 | | | 2,346 | | | 1,830 |
Communication and data connectivity | | | 170 | | | 243 | | | 202 | | | 184 | | | 40 |
Supplies | | | 223 | | | 265 | | | 233 | | | 238 | | | 259 |
Bank service charges | | | 679 | | | 711 | | | 664 | | | 706 | | | 678 |
Losses on debt extinguishment, net | | | — | | | — | | | — | | | 1,963 | | | — |
Correspondent banking expense | | | 334 | | | 335 | | | 333 | | | 329 | | | 338 |
Intangibles amortization | | | 506 | | | 506 | | | 506 | | | 997 | | | 662 |
Payment card processing | | | 551 | | | 496 | | | 508 | | | 577 | | | 569 |
Trust expense | | | 423 | | | 455 | | | 474 | | | 436 | | | 412 |
Other | | | 1,002 | | | 1,012 | | | 1,206 | | | 865 | | | 974 |
Total noninterest expense | | $ | 54,726 | | $ | 53,157 | | $ | 52,125 | | $ | 62,852 | | $ | 56,587 |
| | | | | | | | | | | | | | | |
Net income before income taxes | | $ | 39,996 | | $ | 39,478 | | $ | 35,811 | | $ | 38,668 | | $ | 40,558 |
Federal and state income tax expense | | | 3,562 | | | 3,227 | | | 2,428 | | | 3,004 | | | 3,844 |
Net income | | $ | 36,434 | | $ | 36,251 | | $ | 33,383 | | $ | 35,664 | | $ | 36,714 |
| | | | | | | | | | | | | | | |
Basic EPS | | $ | 2.23 | | $ | 2.20 | | $ | 2.00 | | $ | 2.13 | | $ | 2.17 |
Diluted EPS | | $ | 2.21 | | $ | 2.19 | | $ | 1.99 | | $ | 2.12 | | $ | 2.16 |
| | | | | | | | | | | | | | | |
Weighted average common shares outstanding | | | 16,362,311 | | | 16,489,987 | | | 16,651,808 | | | 16,756,717 | | | 16,919,785 |
Weighted average common and common equivalent shares outstanding | | | 16,451,111 | | | 16,569,815 | | | 16,741,541 | | | 16,858,672 | | | 17,015,730 |
| (1) | Trust fees and investment advisory and management fees when combined are referred to as wealth management revenue. |
7
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
| | For the Nine Months Ended | ||||
| | September 30, | | September 30, | ||
| | 2026 | | 2025 | ||
| | | (dollars in thousands, except per share data) | |||
INCOME STATEMENT | | | | | | |
Interest income | | $ | 362,691 | | $ | 361,935 |
Interest expense | | | 158,645 | | | 175,068 |
Net interest income | | | 204,046 | | | 186,867 |
Provision for credit losses | | | 11,614 | | | 12,582 |
Net interest income after provision for credit losses | | $ | 192,432 | | $ | 174,285 |
| | | | | | |
Trust fees (1) | | $ | 12,155 | | $ | 10,625 |
Investment advisory and management fees (1) | | | 4,767 | | | 3,996 |
Deposit service fees | | | 6,318 | | | 6,601 |
Gains on sales of residential real estate loans, net | | | 1,446 | | | 1,382 |
Capital markets revenue | | | 42,994 | | | 40,217 |
Earnings on bank-owned life insurance | | | 2,843 | | | 2,474 |
Debit card fees | | | 5,156 | | | 4,784 |
Correspondent banking fees | | | 2,178 | | | 1,977 |
Loan related fee income | | | 3,061 | | | 2,840 |
Fair value gain (loss) on derivatives and trading securities | | | 375 | | | (453) |
Other | | | 1,568 | | | 1,215 |
Total noninterest income | | $ | 82,861 | | $ | 75,658 |
| | | | | | |
Salaries and employee benefits | | $ | 96,312 | | $ | 90,176 |
Occupancy and equipment expense | | | 22,986 | | | 20,655 |
Professional and data processing fees | | | 16,009 | | | 17,974 |
FDIC insurance, other insurance and regulatory fees | | | 5,892 | | | 5,965 |
Loan/lease expense | | | 1,003 | | | 1,133 |
Net cost of and gains/losses on operations of other real estate | | | 29 | | | 44 |
Advertising and marketing | | | 5,740 | | | 5,189 |
Communication and data connectivity | | | 615 | | | 604 |
Supplies | | | 721 | | | 718 |
Bank service charges | | | 2,054 | | | 1,994 |
Correspondent banking expense | | | 1,002 | | | 981 |
Intangibles amortization | | | 1,518 | | | 1,984 |
Payment card processing | | | 1,555 | | | 1,710 |
Trust expense | | | 1,352 | | | 1,182 |
Other | | | 3,220 | | | 2,400 |
Total noninterest expense | | $ | 160,008 | | $ | 152,709 |
| | | | | | |
Net income before income taxes | | $ | 115,285 | | $ | 97,234 |
Federal and state income tax expense | | | 9,217 | | | 5,704 |
Net income | | $ | 106,068 | | $ | 91,530 |
| | | | | | |
Basic EPS | | $ | 6.43 | | $ | 5.41 |
Diluted EPS | | $ | 6.39 | | $ | 5.38 |
| | | | | | |
Weighted average common shares outstanding | | | 16,501,369 | | | 16,916,371 |
Weighted average common and common equivalent shares outstanding | | | 16,587,489 | | | 17,011,877 |
| (1) | Trust fees and investment advisory and management fees when combined are referred to as wealth management revenue. |
8
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
| | As of and for the Quarter Ended | | | For the Nine Months Ended | ||||||||||||||||
| | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | | | September 30, | | | September 30, | |||||
| | 2026 | | 2026 | | 2026 | | 2025 | | 2025 | | | 2026 | | | 2025 | |||||
| | | (dollars in thousands, except per share data) | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | |
COMMON SHARE DATA | | | | | | | | | | | | | | | | | | | | | |
Common shares outstanding | | | 16,291,870 | | | 16,367,268 | | | 16,496,102 | | | 16,690,603 | | | 16,838,866 | | | | | | |
Book value per common share (1) | | $ | 70.70 | | $ | 70.25 | | $ | 68.04 | | $ | 66.64 | | $ | 64.55 | | | | | | |
Tangible book value per common share (Non-GAAP) (2) | | $ | 61.79 | | $ | 61.35 | | $ | 59.18 | | $ | 57.86 | | $ | 55.78 | | | | | | |
Closing stock price | | $ | 97.88 | | $ | 97.35 | | $ | 85.45 | | $ | 83.30 | | $ | 75.64 | | | | | | |
Market capitalization | | $ | 1,594,648 | | $ | 1,593,354 | | $ | 1,409,592 | | $ | 1,390,327 | | $ | 1,273,692 | | | | | | |
Market price / book value | | | 138.45% | | | 138.58% | | | 125.58% | | | 124.99% | | | 117.18% | | | | | | |
Market price / tangible book value | | | 158.41% | | | 158.68% | | | 144.38% | | | 143.98% | | | 135.61% | | | | | | |
Earnings per common share (basic) LTM (3) | | $ | 8.56 | | $ | 8.50 | | $ | 8.01 | | $ | 7.54 | | $ | 7.21 | | | | | | |
Price earnings ratio LTM (3) | | | 11.43x | | | 11.45 x | | | 10.67 x | | | 11.05 x | | | 10.49 x | | | | | | |
TCE / TA (Non-GAAP) (4) | | | 10.43% | | | 10.71% | | | 10.31% | | | 10.33% | | | 10.06% | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,149,757 | | $ | 1,122,464 | | $ | 1,112,311 | | $ | 1,086,915 | | $ | 1,050,554 | | | | | | |
Net income | | | 36,434 | | | 36,251 | | | 33,383 | | | 35,664 | | | 36,714 | | | | | | |
Other comprehensive income (loss), net of tax | | | (23,834) | | | 4,354 | | | (1,879) | | | 1,981 | | | 8,342 | | | | | | |
Common stock cash dividends declared | | | (2,457) | | | (1,652) | | | (1,674) | | | (1,011) | | | (1,017) | | | | | | |
Repurchase and cancellation of shares of common stock as a result of a share repurchase program | | | (9,545) | | | (13,469) | | | (20,842) | | | (12,635) | | | (8,993) | | | | | | |
Other (5) | | | 1,463 | | | 1,809 | | | 1,165 | | | 1,397 | | | 1,315 | | | | | | |
Ending balance | | $ | 1,151,818 | | $ | 1,149,757 | | $ | 1,122,464 | | $ | 1,112,311 | | $ | 1,086,915 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
REGULATORY CAPITAL RATIOS (6): | | | | | | | | | | | | | | | | | | | | | |
Total risk-based capital ratio | | | 14.50% | | | 14.13% | | | 14.00% | | | 14.19% | | | 14.03% | | | | | | |
Tier 1 risk-based capital ratio | | | 11.52% | | | 11.18% | | | 11.05% | | | 11.02% | | | 10.85% | | | | | | |
Tier 1 leverage capital ratio | | | 11.96% | | | 11.65% | | | 11.44% | | | 11.07% | | | 11.29% | | | | | | |
Common equity tier 1 ratio | | | 11.01% | | | 10.68% | | | 10.54% | | | 10.52% | | | 10.34% | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
KEY PERFORMANCE RATIOS AND OTHER METRICS | | | | | | | | | | | | | | | | | | | | | |
Return on average assets (annualized) | | | 1.52% | | | 1.51% | | | 1.40% | | | 1.46% | | | 1.57% | | | 1.48% | | | 1.33% |
Return on average total equity (annualized) | | | 12.43% | | | 12.64% | | | 11.75% | | | 12.78% | | | 13.65% | | | 12.27% | | | 11.68% |
Net interest margin | | | 3.12% | | | 3.10% | | | 3.13% | | | 3.06% | | | 3.00% | | | 3.12% | | | 2.97% |
Net interest margin TEY (Non-GAAP) (7) | | | 3.58% | | | 3.55% | | | 3.58% | | | 3.57% | | | 3.51% | | | 3.57% | | | 3.46% |
Efficiency ratio (Non-GAAP) (8) | | | 55.18% | | | 54.61% | | | 57.67% | | | 58.73% | | | 55.78% | | | 55.77% | | | 58.17% |
Gross loans/leases held for investment / total assets | | | 73.48% | | | 73.83% | | | 70.32% | | | 75.44% | | | 75.65% | | | 73.48% | | | 75.01% |
Gross loans/leases held for investment / total deposits | | | 99.92% | | | 94.77% | | | 87.00% | | | 96.65% | | | 97.25% | | | 99.92% | | | 97.25% |
Effective tax rate | | | 8.91% | | | 8.17% | | | 6.78% | | | 7.77% | | | 9.48% | | | 7.99% | | | 5.87% |
Full-time equivalent employees | | | 1,016 | | | 1,001 | | | 997 | | | 1,004 | | | 994 | | | 1,016 | | | 994 |
| | | | | | | | | | | | | | | | | | | | | |
AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | | |
Assets | | $ | 9,558,844 | | $ | 9,581,171 | | $ | 9,550,010 | | $ | 9,758,848 | | $ | 9,354,411 | | $ | 9,563,374 | | $ | 9,176,349 |
Loans/leases | | | 7,103,446 | | | 7,182,293 | | | 7,183,312 | | | 7,292,592 | | | 7,048,314 | | | 7,156,107 | | | 6,907,731 |
Deposits | | | 7,439,218 | | | 7,613,397 | | | 7,650,696 | | | 7,620,212 | | | 7,383,373 | | | 7,566,996 | | | 7,250,268 |
Total stockholders’ equity | | | 1,172,894 | | | 1,147,382 | | | 1,136,307 | | | 1,116,342 | | | 1,075,715 | | | 1,152,328 | | | 1,045,090 |
| (1) | Includes accumulated other comprehensive income (loss). |
| (2) | Includes accumulated other comprehensive income (loss) and excludes intangible assets. See GAAP to Non-GAAP reconciliations. |
| (3) | LTM: Last twelve months. |
| (4) | TCE / TCA: tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations. |
| (5) | Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation. |
| (6) | Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release. |
| (7) | TEY: Tax equivalent yield. See GAAP to Non-GAAP reconciliations. |
| (8) | See GAAP to Non-GAAP reconciliations. |
9
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
ANALYSIS OF NET INTEREST INCOME AND MARGIN | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Quarter Ended | ||||||||||||||||||||||
| | September. 30, 2026 | | June 30, 2026 | | September 30, 2025 | ||||||||||||||||||
| | Average Balance | | Interest Earned or Paid | | Average Yield or Cost | | Average Balance | | Interest Earned or Paid | | Average Yield or Cost | | Average Balance | | Interest Earned or Paid | | Average Yield or Cost | ||||||
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | (dollars in thousands) | |||||||||||||||||||||
Fed funds sold | | $ | 13,386 | | $ | 127 | | 3.71% | | $ | 5,264 | | $ | 52 | | 3.91% | | $ | 13,808 | | $ | 154 | | 4.36% |
Interest-bearing deposits at financial institutions | | | 106,013 | | | 935 | | 3.50% | | | 150,092 | | | 1,353 | | 3.62% | | | 128,126 | | | 1,341 | | 4.15% |
Investment securities - taxable | | | 446,297 | | | 4,968 | | 4.46% | | | 426,526 | | | 4,755 | | 4.47% | | | 400,765 | | | 4,878 | | 4.86% |
Investment securities - nontaxable (1) | | | 1,035,149 | | | 16,451 | | 6.35% | | | 989,220 | | | 15,537 | | 6.29% | | | 952,542 | | | 13,841 | | 5.81% |
Restricted investment securities | | | 34,653 | | | 650 | | 7.34% | | | 30,028 | | | 519 | | 6.84% | | | 31,959 | | | 570 | | 6.98% |
Loans (1) | | | 7,103,446 | | | 108,476 | | 6.06% | | | 7,182,293 | | | 108,623 | | 6.07% | | | 7,048,314 | | | 115,094 | | 6.48% |
Total earning assets (1) | | $ | 8,738,944 | | $ | 131,607 | | 5.98% | | $ | 8,783,423 | | $ | 130,839 | | 5.97% | | $ | 8,575,514 | | $ | 135,878 | | 6.29% |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | $ | 5,407,041 | | $ | 36,031 | | 2.64% | | $ | 5,519,231 | | $ | 36,251 | | 2.63% | | $ | 5,197,006 | | $ | 40,221 | | 3.07% |
Time deposits | | | 979,181 | | | 8,568 | | 3.47% | | | 1,080,345 | | | 9,543 | | 3.54% | | | 1,237,232 | | | 12,595 | | 4.04% |
Short-term borrowings | | | 3,661 | | | 33 | | 3.47% | | | 3,138 | | | 30 | | 3.82% | | | 2,022 | | | 21 | | 4.15% |
Federal Home Loan Bank advances | | | 256,174 | | | 2,509 | | 3.83% | | | 153,279 | | | 1,384 | | 3.57% | | | 204,786 | | | 2,348 | | 4.49% |
Other borrowings | | | 99,450 | | | 1,081 | | 4.35% | | | 107,389 | | | 1,265 | | 4.71% | | | 48,295 | | | 479 | | 3.97% |
Subordinated notes | | | 234,344 | | | 3,934 | | 6.72% | | | 234,250 | | | 3,923 | | 6.70% | | | 236,783 | | | 3,861 | | 6.52% |
Junior subordinated debentures | | | 49,068 | | | 725 | | 5.78% | | | 49,035 | | | 716 | | 5.78% | | | 48,936 | | | 690 | | 5.52% |
Total interest-bearing liabilities | | $ | 7,028,919 | | $ | 52,881 | | 2.98% | | $ | 7,146,667 | | $ | 53,112 | | 2.98% | | $ | 6,975,060 | | $ | 60,215 | | 3.42% |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income (1) | | | | | $ | 78,726 | | | | | | | $ | 77,727 | | | | | | | $ | 75,663 | | |
Net interest margin | | | | | | | | 3.12% | | | | | | | | 3.10% | | | | | | | | 3.00% |
Net interest margin TEY (Non-GAAP) (1) (2) | | | | | | | | 3.58% | | | | | | | | 3.55% | | | | | | | | 3.51% |
Cost of funds (3) | | | | | | | | 2.60% | | | | | | | | 2.61% | | | | | | | | 3.01% |
| | For the Nine Months Ended | ||||||||||||||
| | September. 30, 2026 | | September 30, 2025 | ||||||||||||
| | 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 | | $ | 8,904 | | $ | 252 | | 3.73% | | $ | 12,385 | | $ | 412 | | 4.38% |
Interest-bearing deposits at financial institutions | | | 141,033 | | | 3,776 | | 3.58% | | | 149,287 | | | 4,778 | | 4.28% |
Investment securities - taxable | | | 427,853 | | | 14,685 | | 4.58% | | | 401,067 | | | 14,272 | | 4.75% |
Investment securities - nontaxable (1) | | | 989,559 | | | 46,038 | | 6.21% | | | 896,990 | | | 38,434 | | 5.72% |
Restricted investment securities | | | 29,773 | | | 1,554 | | 6.89% | | | 32,191 | | | 1,726 | | 7.07% |
Loans (1) | | | 7,156,107 | | | 325,980 | | 6.09% | | | 6,907,731 | | | 332,780 | | 6.44% |
Total earning assets (1) | | $ | 8,753,229 | | $ | 392,285 | | 5.99% | | $ | 8,399,651 | | $ | 392,402 | | 6.24% |
| | | | | | | | | | | | | | | | |
Interest-bearing deposits | | $ | 5,459,152 | | $ | 107,776 | | 2.64% | | $ | 5,094,180 | | $ | 116,523 | | 3.06% |
Time deposits | | | 1,088,435 | | | 29,172 | | 3.58% | | | 1,211,739 | | | 37,693 | | 4.16% |
Short-term borrowings | | | 3,349 | | | 90 | | 3.55% | | | 1,761 | | | 55 | | 4.09% |
Federal Home Loan Bank advances | | | 151,212 | | | 4,190 | | 3.65% | | | 211,189 | | | 7,197 | | 4.49% |
Other borrowings | | | 104,722 | | | 3,512 | | 4.47% | | | 16,275 | | | 479 | | 3.93% |
Subordinated notes | | | 234,251 | | | 11,777 | | 6.70% | | | 234,659 | | | 11,062 | | 6.29% |
Junior subordinated debentures | | | 49,035 | | | 2,128 | | 5.72% | | | 48,904 | | | 2,059 | | 5.55% |
Total interest-bearing liabilities | | $ | 7,090,156 | | $ | 158,645 | | 2.99% | | $ | 6,818,707 | | $ | 175,068 | | 3.43% |
| | | | | | | | | | | | | | | | |
Net interest income (1) | | | | | $ | 233,640 | | | | | | | $ | 217,334 | | |
Net interest margin | | | | | | | | 3.12% | | | | | | | | 2.97% |
Net interest margin TEY (Non-GAAP) (1) (2) | | | | | | | | 3.57% | | | | | | | | 3.46% |
Cost of funds (3) | | | | | | | | 2.61% | | | | | | | | 3.01% |
(1) | Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate. |
(2) | TEY: Tax equivalent yield. See GAAP to Non-GAAP reconciliations. |
(3) | Cost of funds includes the effect of noninterest-bearing deposits. |
10
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
| | As of | |||||||||||||
| | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | |||||
| | 2026 | | 2026 | | 2026 | | 2025 | | 2025 | |||||
| | | (dollars in thousands) | ||||||||||||
| | | | | | | | | | | | | | | |
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES | | | | | | | | | | | | | | | |
Beginning balance | | $ | 87,185 | | $ | 85,459 | | $ | 90,127 | | $ | 88,770 | | $ | 88,732 |
Change in ACL for transfer of loans to LHFS (4) | | | — | | | 374 | | | (3,450) | | | — | | | — |
Provision for credit losses | | | 4,324 | | | 4,652 | | | 2,688 | | | 5,562 | | | 4,225 |
Loans/leases charged off | | | (4,217) | | | (3,573) | | | (4,447) | | | (4,469) | | | (4,746) |
Recoveries on loans/leases previously charged off | | | 1,132 | | | 273 | | | 541 | | | 264 | | | 559 |
Ending balance | | $ | 88,424 | | $ | 87,185 | | $ | 85,459 | | $ | 90,127 | | $ | 88,770 |
| | | | | | | | | | | | | | | |
NONPERFORMING ASSETS | | | | | | | | | | | | | | | |
Nonaccrual loans/leases | | $ | 36,250 | | $ | 39,139 | | $ | 41,823 | | $ | 42,212 | | $ | 42,167 |
Accruing loans/leases past due 90 days or more | | | 21 | | | 1 | | | 35 | | | 85 | | | 43 |
Total nonperforming loans/leases | | | 36,271 | | | 39,140 | | | 41,858 | | | 42,297 | | | 42,210 |
Other real estate owned | | | 1,709 | | | 350 | | | 540 | | | 540 | | | — |
Other repossessed assets | | | 20 | | | 20 | | | 500 | | | 500 | | | 510 |
Total nonperforming assets | | $ | 38,000 | | $ | 39,510 | | $ | 42,898 | | $ | 43,337 | | $ | 42,720 |
| | | | | | | | | | | | | | | |
ASSET QUALITY RATIOS | | | | | | | | | | | | | | | |
Nonperforming assets / total assets | | | 0.39% | | | 0.41% | | | 0.45% | | | 0.45% | | | 0.45% |
ACL for loans and leases / total loans/leases held for investment | | | 1.23% | | | 1.24% | | | 1.26% | | | 1.26% | | | 1.24% |
ACL for loans and leases / nonperforming loans/leases | | | 243.79% | | | 222.75% | | | 204.16% | | | 213.08% | | | 210.31% |
Net charge-offs as a % of average loans/leases | | | 0.04% | | | 0.05% | | | 0.05% | | | 0.06% | | | 0.06% |
| | | | | | | | | | | | | | | |
INTERNALLY ASSIGNED RISK RATING (1) | | | | | | | | | | | | | | | |
Special mention | | $ | 59,675 | | $ | 69,706 | | $ | 82,819 | | $ | 74,765 | | $ | 76,750 |
Substandard (2) | | | 60,729 | | | 64,519 | | | 63,491 | | | 64,142 | | | 67,319 |
Doubtful (2) | | | — | | | — | | | — | | | — | | | — |
Total Criticized loans (3) | | $ | 120,404 | | $ | 134,225 | | $ | 146,310 | | $ | 138,907 | | $ | 144,069 |
| | | | | | | | | | | | | | | |
Classified loans as a % of total loans/leases (2) | | | 0.84% | | | 0.92% | | | 0.87% | | | 0.89% | | | 0.94% |
Total Criticized loans as a % of total loans/leases (3) | | | 1.67% | | | 1.91% | | | 2.01% | | | 1.94% | | | 2.01% |
(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. |
(4) | LHFS: Loans held for sale. |
11
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
| | For the Quarter Ended | | For the Nine Months Ended | |||||||||||
| | September 30, | | June 30, | | September 30, | | September 30, | | September 30, | |||||
SELECT FINANCIAL DATA - SUBSIDIARIES | | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | |||||
| | | (dollars in thousands) | ||||||||||||
| | | | | | | | | | | | | | | |
TOTAL ASSETS | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | $ | 2,709,310 | | $ | 2,787,394 | | $ | 2,794,136 | | | | | | |
m2 Equipment Finance, LLC | | | 108,136 | | | 130,764 | | | 211,524 | | | | | | |
Cedar Rapids Bank and Trust | | | 2,979,899 | | | 2,880,251 | | | 2,760,379 | | | | | | |
Community State Bank | | | 1,780,615 | | | 1,745,280 | | | 1,680,476 | | | | | | |
Guaranty Bank | | | 2,414,400 | | | 2,377,330 | | | 2,446,635 | | | | | | |
| | | | | | | | | | | | | | | |
TOTAL DEPOSITS | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | $ | 2,166,722 | | $ | 2,393,789 | | $ | 2,407,371 | | | | | | |
Cedar Rapids Bank and Trust | | | 2,045,193 | | | 2,075,070 | | | 1,890,779 | | | | | | |
Community State Bank | | | 1,325,930 | | | 1,263,222 | | | 1,296,255 | | | | | | |
Guaranty Bank | | | 1,879,258 | | | 1,879,401 | | | 1,835,993 | | | | | | |
| | | | | | | | | | | | | | | |
TOTAL LOANS & LEASES | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | $ | 1,949,427 | | $ | 1,895,840 | | $ | 2,118,791 | | | | | | |
m2 Equipment Finance, LLC | | | 112,377 | | | 135,065 | | | 217,966 | | | | | | |
Cedar Rapids Bank and Trust | | | 2,073,690 | | | 2,011,688 | | | 1,894,594 | | | | | | |
Community State Bank | | | 1,331,493 | | | 1,291,151 | | | 1,269,359 | | | | | | |
Guaranty Bank | | | 1,845,293 | | | 1,834,251 | | | 1,896,178 | | | | | | |
| | | | | | | | | | | | | | | |
TOTAL LOANS & LEASES / TOTAL DEPOSITS | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | | 90% | | | 79% | | | 88% | | | | | | |
Cedar Rapids Bank and Trust | | | 101% | | | 97% | | | 100% | | | | | | |
Community State Bank | | | 100% | | | 102% | | | 98% | | | | | | |
Guaranty Bank | | | 98% | | | 98% | | | 103% | | | | | | |
| | | | | | | | | | | | | | | |
TOTAL LOANS & LEASES / TOTAL ASSETS | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | | 72% | | | 68% | | | 76% | | | | | | |
Cedar Rapids Bank and Trust | | | 70% | | | 70% | | | 69% | | | | | | |
Community State Bank | | | 75% | | | 74% | | | 76% | | | | | | |
Guaranty Bank | | | 76% | | | 77% | | | 78% | | | | | | |
| | | | | | | | | | | | | | | |
ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | | 1.18% | | | 1.17% | | | 1.24% | | | | | | |
m2 Equipment Finance, LLC | | | 5.42% | | | 5.05% | | | 4.48% | | | | | | |
Cedar Rapids Bank and Trust | | | 1.17% | | | 1.19% | | | 1.31% | | | | | | |
Community State Bank | | | 1.03% | | | 1.00% | | | 0.97% | | | | | | |
Guaranty Bank | | | 1.48% | | | 1.53% | | | 1.34% | | | | | | |
| | | | | | | | | | | | | | | |
RETURN ON AVERAGE ASSETS (ANNUALIZED) | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | | 1.37% | | | 1.59% | | | 1.20% | | | 1.43% | | | 1.25% |
Cedar Rapids Bank and Trust | | | 3.02% | | | 3.03% | | | 3.26% | | | 2.84% | | | 2.60% |
Community State Bank | | | 1.29% | | | 1.34% | | | 1.40% | | | 1.33% | | | 1.27% |
Guaranty Bank | | | 1.22% | | | 0.66% | | | 1.30% | | | 1.04% | | | 0.96% |
| | | | | | | | | | | | | | | |
NET INTEREST MARGIN PERCENTAGE (2) | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | | 3.26% | | | 3.15% | | | 3.40% | | | 3.21% | | | 3.43% |
Cedar Rapids Bank and Trust | | | 4.07% | | | 3.99% | | | 4.03% | | | 4.03% | | | 4.01% |
Community State Bank | | | 3.92% | | | 3.91% | | | 3.90% | | | 3.91% | | | 3.85% |
Guaranty Bank | | | 3.37% | | | 3.27% | | | 3.22% | | | 3.36% | | | 3.13% |
(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. |
12
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
| | As of | |||||||||||||
| | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | |||||
GAAP TO NON-GAAP RECONCILIATIONS | | 2026 | | 2026 | | 2026 | | 2025 | | 2025 | |||||
| | (dollars in thousands, except per share data) | |||||||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1) | | | | | | | | | | | | | | | |
Stockholders’ equity (GAAP) | | $ | 1,151,818 | | $ | 1,149,757 | | $ | 1,122,464 | | $ | 1,112,311 | | $ | 1,086,915 |
Less: Intangible assets | | | 145,157 | | | 145,663 | | | 146,169 | | | 146,675 | | | 147,672 |
Tangible common equity (non-GAAP) | | $ | 1,006,661 | | $ | 1,004,094 | | $ | 976,295 | | $ | 965,636 | | $ | 939,243 |
| | | | | | | | | | | | | | | |
Total assets (GAAP) | | $ | 9,795,320 | | $ | 9,520,643 | | $ | 9,613,695 | | $ | 9,498,194 | | $ | 9,487,935 |
Less: Intangible assets | | | 145,157 | | | 145,663 | | | 146,169 | | | 146,675 | | | 147,672 |
Tangible assets (non-GAAP) | | $ | 9,650,163 | | $ | 9,374,980 | | $ | 9,467,526 | | $ | 9,351,519 | | $ | 9,340,263 |
| | | | | | | | | | | | | | | |
Tangible common equity to tangible assets ratio (non-GAAP) | | | 10.43% | | | 10.71% | | | 10.31% | | | 10.33% | | | 10.06% |
| | | | | | | | | | | | | | | |
TANGIBLE BOOK VALUE PER SHARE (1) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Tangible common equity (non-GAAP) | | $ | 1,006,661 | | $ | 1,004,094 | | $ | 976,295 | | $ | 965,636 | | $ | 939,243 |
| | | | | | | | | | | | | | | |
Common shares outstanding | | | 16,291,870 | | | 16,367,268 | | | 16,496,102 | | | 16,690,603 | | | 16,838,866 |
| | | | | | | | | | | | | | | |
Tangible book value per common share (non-GAAP) | | $ | 61.79 | | $ | 61.35 | | $ | 59.18 | | $ | 57.86 | | $ | 55.78 |
| | | | | | | | | | | | | | | |
CORE DEPOSITS (1) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total deposits (GAAP) | | $ | 7,203,201 | | $ | 7,417,334 | | $ | 7,770,850 | | $ | 7,414,198 | | $ | 7,380,068 |
Less: Brokered Deposits | | | 164,867 | | | 154,824 | | | 184,498 | | | 236,930 | | | 266,950 |
Core deposits (non-GAAP) | | $ | 7,038,334 | | $ | 7,262,510 | | $ | 7,586,352 | | $ | 7,177,268 | | $ | 7,113,118 |
| (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. |
13
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
GAAP TO NON-GAAP RECONCILIATIONS | | For the Quarter Ended | | For the Nine Months Ended | |||||||||||||||||
| | September 30, | | June 30, | | March 31, | | December 31, | | September 30, | | September 30, | | September 30, | |||||||
ADJUSTED NET INCOME (1) | | 2026 | | 2026 | | 2026 | | 2025 | | 2025 | | 2026 | | 2025 | |||||||
| | | (dollars in thousands, except per share data) | ||||||||||||||||||
Net income (GAAP) | | $ | 36,434 | | $ | 36,251 | | $ | 33,383 | | $ | 35,664 | | $ | 36,714 | | $ | 106,068 | | $ | 91,530 |
| | | | | | | | | | | | | | | | | | | | | |
Less non-core items (post-tax) (2): | | | | | | | | | | | | | | | | | | | | | |
Income: | | | | | | | | | | | | | | | | | | | | | |
Fair value loss on derivatives, net | | | — | | | (4) | | | (13) | | | (88) | | | (223) | | | (17) | | | (776) |
Total adjusted income (non-GAAP) | | $ | — | | $ | (4) | | $ | (13) | | $ | (88) | | $ | (223) | | $ | (17) | | $ | (776) |
| | | | | | | | | | | | | | | | | | | | | |
Expense: | | | | | | | | | | | | | | | | | | | | | |
Losses on debt extinguishment, net | | | — | | | — | | | — | | | 1,551 | | | — | | | — | | | — |
Total adjusted expense (non-GAAP) | | $ | — | | $ | — | | $ | — | | $ | 1,551 | | $ | — | | $ | — | | $ | — |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted net income (non-GAAP) (1) | | $ | 36,434 | | $ | 36,255 | | $ | 33,396 | | $ | 37,303 | | $ | 36,937 | | $ | 106,085 | | $ | 92,306 |
| | | | | | | | | | | | | | | | | | | | | |
ADJUSTED EARNINGS PER COMMON SHARE (1) | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted net income (non-GAAP) (from above) | | $ | 36,434 | | $ | 36,255 | | $ | 33,396 | | $ | 37,303 | | $ | 36,937 | | $ | 106,085 | | $ | 92,306 |
| | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding | | | 16,362,311 | | | 16,489,987 | | | 16,651,808 | | | 16,756,717 | | | 16,919,785 | | | 16,501,369 | | | 16,916,371 |
Weighted average common and common equivalent shares outstanding | | | 16,451,111 | | | 16,569,815 | | | 16,741,541 | | | 16,858,672 | | | 17,015,730 | | | 16,587,489 | | | 17,011,877 |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted earnings per common share (non-GAAP): | | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 2.23 | | $ | 2.20 | | $ | 2.01 | | $ | 2.23 | | $ | 2.18 | | $ | 6.43 | | $ | 5.46 |
Diluted | | $ | 2.21 | | $ | 2.19 | | $ | 1.99 | | $ | 2.21 | | $ | 2.17 | | $ | 6.40 | | $ | 5.43 |
| | | | | | | | | | | | | | | | | | | | | |
ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1) | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted net income (non-GAAP) (from above) | | $ | 36,434 | | $ | 36,255 | | $ | 33,396 | | $ | 37,303 | | $ | 36,937 | | $ | 106,085 | | $ | 92,306 |
| | | | | | | | | | | | | | | | | | | | | |
Average Assets | | $ | 9,558,844 | | $ | 9,581,171 | | $ | 9,550,010 | | $ | 9,758,848 | | $ | 9,354,411 | | $ | 9,563,374 | | $ | 9,176,349 |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted return on average assets (annualized) (non-GAAP) | | | 1.52% | | | 1.51% | | | 1.40% | | | 1.53% | | | 1.58% | | | 1.48% | | | 1.34% |
Adjusted return on average equity (annualized) (non-GAAP) | | | 12.43% | | | 12.64% | | | 11.76% | | | 13.37% | | | 13.73% | | | 12.27% | | | 11.78% |
| | | | | | | | | | | | | | | | | | | | | |
NET INTEREST MARGIN TEY (3) | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net interest income (GAAP) | | $ | 68,692 | | $ | 67,916 | | $ | 67,438 | | $ | 68,354 | | $ | 64,799 | | $ | 204,046 | | $ | 186,867 |
Plus: Tax equivalent adjustment (4) | | | 10,034 | | | 9,811 | | | 9,748 | | | 11,277 | | | 10,864 | | | 29,594 | | | 30,467 |
Net interest income - tax equivalent (non-GAAP) | | $ | 78,726 | | $ | 77,727 | | $ | 77,186 | | $ | 79,631 | | $ | 75,663 | | $ | 233,640 | | $ | 217,334 |
| | | | | | | | | | | | | | | | | | | | | |
Average earning assets | | $ | 8,738,944 | | $ | 8,783,423 | | $ | 8,737,152 | | $ | 8,872,022 | | $ | 8,575,514 | | $ | 8,753,229 | | $ | 8,399,651 |
| | | | | | | | | | | | | | | | | | | | | |
Net interest margin (GAAP) | | | 3.12% | | | 3.10% | | | 3.13% | | | 3.06% | | | 3.00% | | | 3.12% | | | 2.97% |
Net interest margin TEY (non-GAAP) | | | 3.58% | | | 3.55% | | | 3.58% | | | 3.57% | | | 3.51% | | | 3.57% | | | 3.46% |
| | | | | | | | | | | | | | | | | | | | | |
EFFICIENCY RATIO (5) | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Noninterest expense (GAAP) | | $ | 54,726 | | $ | 53,157 | | $ | 52,125 | | $ | 62,852 | | $ | 56,587 | | $ | 160,008 | | $ | 152,709 |
| | | | | | | | | | | | | | | | | | | | | |
Net interest income (GAAP) | | $ | 68,692 | | $ | 67,916 | | $ | 67,438 | | $ | 68,354 | | $ | 64,799 | | $ | 204,046 | | $ | 186,867 |
Noninterest income (GAAP) | | | 30,482 | | | 29,427 | | | 22,952 | | | 38,665 | | | 36,651 | | | 82,861 | | | 75,658 |
Total income | | $ | 99,174 | | $ | 97,343 | | $ | 90,390 | | $ | 107,019 | | $ | 101,450 | | $ | 286,907 | | $ | 262,525 |
| | | | | | | | | | | | | | | | | | | | | |
Efficiency ratio (noninterest expense/total income) (non-GAAP) | | | 55.18% | | | 54.61% | | | 57.67% | | | 58.73% | | | 55.78% | | | 55.77% | | | 58.17% |
Adjusted efficiency ratio (adjusted noninterest expense/adjusted total income) (non-GAAP) | | | 55.18% | | | 54.61% | | | 57.66% | | | 56.84% | | | 55.62% | | | 55.77% | | | 57.95% |
| (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. |
14