QCR Holdings (NASDAQ: QCRH) Q2 2026 net income rises to $36.3M
Rhea-AI Filing Summary
QCR Holdings reported second-quarter 2026 net income of $36.3 million and diluted EPS of $2.19 for the quarter ended June 30, 2026, compared with $33.4 million and $1.99 in the first quarter and $29.0 million and $1.71 a year earlier. Net interest income was $67.9 million and noninterest income $29.4 million, supported by $16.7 million of LIHTC-related capital markets revenue and higher wealth management fees.
Total loans grew $216.9 million, or 12% annualized excluding LIHTC offtake and planned runoff, while the company executed $443.6 million of LIHTC loan offtake transactions. Net interest margin was 3.10% and 3.55% on a tax-equivalent yield basis. Asset quality improved, with nonperforming assets at $39.5 million, or 0.41% of total assets, and a criticized loans ratio of 1.91%.
Tangible book value per share rose to $61.35, increasing $2.17, or 15% annualized, during the quarter. The tangible common equity to tangible assets ratio increased to 10.71%. QCR returned approximately $13.5 million to shareholders through repurchases and has bought back over 675 thousand shares, about 4% of shares outstanding, since 2025 while reaffirming guidance for 10% to 15% annualized gross loan growth and $60 million to $70 million of capital markets revenue over the next four quarters.
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Filing Explained
Executed LIHTC loan sales changed the asset and revenue mix; the next revised sale structure remains targeted for early 2027, not completed.
This Form 8-K furnishes QCR Holdings’ second-quarter results for the quarter ended
The transactions consisted of a Freddie Mac permanent-loan securitization and a construction-loan portfolio sale. The company reported a
The company is targeting its first transaction under a revised permanent-loan sale structure for early
8-K Event Classification
Key Figures
Key Terms
LIHTC loan offtake transactions financial
Net interest margin TEY (Non-GAAP) financial
efficiency ratio (Non-GAAP) financial
criticized loans financial
Earnings Snapshot
The company reaffirmed guidance for 10% to 15% annualized gross loan growth for the final two quarters of 2026, $60 million to $70 million of capital markets revenue over the next four quarters, a relatively static third quarter 2026 net interest margin TEY assuming no Federal Reserve rate changes, and third quarter 2026 noninterest expense of $54 million to $57 million.
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FAQ
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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
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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 July 22, 2026, QCR Holdings, Inc. (the “Company”) issued a press release disclosing financial results for the quarter ended June 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 July 22, 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. | |
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Date: July 22, 2026 | By: | /s/ Todd A. Gipple |
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| Todd A. Gipple |
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| President and Chief Executive Officer |
Exhibit 99.1
PRESS RELEASE | FOR IMMEDIATE RELEASE |
QCR Holdings, Inc. Announces Net Income of $36.3 million
for the Second Quarter of 2026
Second Quarter 2026 Highlights
| ● | Net income of $36.3 million, or $2.19 diluted earnings per share (“EPS”), representing a 28% year-over-year increase in diluted EPS |
| ● | Strong return on average assets of 1.51% |
| ● | Significant capital markets revenue from low-income housing tax credit (“LIHTC”) production increased 69% year-over-year to $16.7 million |
| ● | Wealth Management assets under management increased 9% and revenue increased 7% on a linked-quarter basis |
| ● | Enhanced operating leverage, reflected in a 310-basis point improvement in the efficiency ratio1 to 54.6% |
| ● | Robust gross loan growth of 12% annualized, excluding securitization, loan sale, and m2 Equipment Finance (“m2”) portfolio runoff |
| ● | Successful execution of $443.6 million in LIHTC loan offtake transactions |
| ● | Asset quality improved with criticized loans to total loans at the lowest level since the fourth quarter of 2019 |
| ● | Tangible book value (“TBV”) per share1 growth of $2.17, or 15% annualized on a linked-quarter basis |
| ● | Opportunistic share repurchases of 149,639 shares at an average price of $90.01 per share |
Moline, IL, July 22, 2026 – QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced quarterly net income of $36.3 million and diluted EPS of $2.19 for the second quarter of 2026, compared to net income of $33.4 million and diluted EPS of $1.99 for the first quarter of 2026, and $29.0 million and $1.71 for the second quarter of 2025.
| | For the Quarter Ended | |||||||
| | June 30, | | March 31, | | June 30, | |||
$ in millions (except per share data) | | 2026 | | 2026 | | 2025 | |||
Net Income | | $ | 36.3 | | $ | 33.4 | | $ | 29.0 |
Diluted EPS | | $ | 2.19 | | $ | 1.99 | | $ | 1.71 |
Adjusted Net Income1 | | $ | 36.3 | | $ | 33.4 | | $ | 29.4 |
Adjusted Diluted EPS1 | | $ | 2.19 | | $ | 1.99 | | $ | 1.73 |
“We delivered strong net income and record GAAP EPS for the second quarter, demonstrating the ongoing momentum across our franchise. Adjusted EPS1 also remained near record levels, exceeded only by the fourth quarter of 2025. These results were supported by substantial loan production, a rebound in capital markets revenue, higher net interest income despite significant LIHTC loan sales, and strong contributions from our wealth management business. Noninterest expenses also outperformed our guidance. Together, these results produced meaningful operating leverage and demonstrated the strength of our diversified business model,” said Todd Gipple, President and Chief Executive Officer.
“We also made important progress on several strategic priorities during the quarter, improving asset quality to the strongest levels in nearly seven years, completing our second core conversion, executing LIHTC offtake transactions that advanced our asset and capital-light strategy, and returning $13.5 million to shareholders through opportunistic share repurchases,” said Mr. Gipple.
Robust Loan Growth
In the second quarter of 2026, total loans grew $216.9 million, or 12% annualized, excluding LIHTC loan offtake transactions and the planned runoff of the m2 portfolio. The Company executed $443.6 million of LIHTC loan offtake transactions during the quarter, consisting of a Freddie Mac permanent loan securitization and a construction loan portfolio sale.
“We delivered strong loan growth fueled by solid production across both our LIHTC and traditional lending businesses, in line with our guidance. Our 7% annualized traditional loan growth, excluding the planned m2 portfolio runoff, reflects robust local client demand and continued strength across our markets,” said Mr. Gipple.
“With very strong pipelines and a healthy outlook for future originations, we expect increased lending activity to fully offset the near-term impact of LIHTC offtake transactions on net interest income. Over time, these transactions will allow us to expand our capital markets revenue opportunities. Accordingly, we are reaffirming our gross loan growth guidance of 10% to 15% annualized for the final two quarters of 2026,” said Mr. Gipple.
Significant Capital Markets and Wealth Management Revenue Growth
Noninterest income for the second quarter of 2026 was $29.4 million, up from $23.0 million in the first quarter of 2026. The Company generated $16.7 million of capital markets revenue from LIHTC loan production in the second quarter of 2026, representing a linked-quarter increase of 56% and a year-over-year increase of 69%. Capital markets revenue growth was partially offset by a $1.3 million loss from the Freddie Mac LIHTC securitization. Wealth management revenue totaled $5.8 million for the quarter, representing a 7% increase from the first quarter of 2026, reflecting strong market performance and continued new relationship and AUM growth.
“Our wealth management business continues to perform at a high level, delivering 7% revenue growth and 9% AUM growth during the quarter. We believe our investments in this business position us well to sustain this momentum and capture additional growth opportunities,” said Mr. Gipple.
“As expected, capital markets revenue increased sharply from a seasonally slower first quarter, supported by growth in our LIHTC lending platform. These results reflect the continued robust demand for affordable housing and the strength of our experienced team. We continue to create new relationships with some of the best LIHTC developers in the country while expanding our relationships with existing clients. We remain particularly excited about the momentum in our LIHTC business, as the outlook in this segment remains very strong, supported by an outstanding pipeline and favorable affordable housing fundamentals. As a result, we are reaffirming our guidance of $60 million to $70 million of capital markets revenue over the next four quarters,” said Mr. Gipple.
“As noted in prior quarters, Freddie Mac has significantly increased the complexity of its M-Series securitization program since our earlier transactions. While the underlying securities priced better than expected, higher transaction costs under the revised program drove the loss on this securitization. We are pursuing alternative loan sale structures for our permanent LIHTC loans that we believe will be less complex, faster to execute, and more economically attractive. These structures are also expected to allow for a complete sale of the underlying loans without retaining the first-loss B-Tranche, removing the loans from risk-based assets and more effectively freeing regulatory capital. We are targeting early 2027 for our first transaction under this revised structure,” said Mr. Gipple.
Strong Earning Asset Growth Offsets Impact of LIHTC Loan Sales
Net interest income for the second quarter of 2026 was $67.9 million, an increase of $0.5 million, or 3% annualized, from the first quarter of 2026. Average earning assets increased $46.3 million during the quarter, more than offsetting the impact of LIHTC offtake transactions and driving higher interest income.
Net interest margin (“NIM”) was 3.10% and NIM on a tax-equivalent yield (“TEY”) basis1 was 3.55% for the second quarter, as compared to 3.13% and 3.58%, respectively for the prior quarter. Continued progress in lowering interest-bearing and time deposit costs, along with the accretive impact of the LIHTC offtake transactions, was more than offset by a shift toward higher-cost wholesale funding and lower loan yields. The majority of the reduction in loan yields was driven by lower nonaccrual interest recoveries and reduced loan discount accretion.
“Our NIM TEY1 declined 3 basis points from the first quarter of 2026 and came in below our guidance range,” said Nick Anderson, Chief Financial Officer. “After early quarter pressure, NIM improved and stabilized in May and June, with June exceeding the quarterly average by 1 basis point. We continued to maintain deposit pricing discipline in a competitive environment, driving a further decline in our cost of deposits during the quarter. While lower loan discount accretion and nonaccrual interest recoveries pressured our loan yield, significant earning asset growth helped support net interest income as we executed on our LIHTC offtake transactions.”
“We are encouraged by the strength of our lending pipeline and consistent loan demand, which continue to support profitable growth opportunities across our footprint. Combined with our disciplined approach to deposit costs, this positive momentum supports our guidance for a relatively static third quarter NIM TEY1, assuming no Federal Reserve rate changes,” said Mr. Anderson.
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Core Deposits Normalize Following Exceptional First Quarter
Total core deposit activity in the second quarter of 2026 normalized from the exceptional first quarter performance, decreasing $323.8 million. The decline primarily reflected the Company’s intentional reduction of higher-cost correspondent and public fund balances, supported by liquidity generated from LIHTC offtake transactions and a steady increase in noninterest bearing deposits. Year-to-date, core deposits have increased $85 million, or 2% annualized.
The Company’s total deposits at the end of the second quarter were $7.4 billion, a decrease of 4.5% from the first quarter and includes a further reduction in non-core brokered deposits to just 2% of total deposits. “We remain focused on growing core deposits, optimizing our funding mix, and maintaining disciplined deposit pricing in a competitive environment. We also delivered our third consecutive quarter of noninterest bearing deposit growth, reflecting continued progress on a key strategic priority for our Company,” said Mr. Anderson.
Efficient Expense Structure Drives Operating Leverage
Noninterest expense for the second quarter of 2026 totaled $53.2 million, compared to $52.1 million for the first quarter of 2026. The $1.0 million linked-quarter increase primarily reflected higher salary and benefits associated with increased capital markets activity, as well as higher professional and data processing expense, related to the core conversion completed during the quarter. The increase in salary and benefits expense was partially offset by an $825 thousand linked-quarter decline in stock-based compensation expense, as most of this expense is recognized in the first quarter, and by higher deferred loan origination costs associated with strong loan growth.
“Stronger capital markets production drove higher variable compensation with digital transformation costs also contributing to the linked-quarter increase in noninterest expense. Even with these increases, expenses remained below our guided range, reflecting disciplined expense management and improving operating leverage,” said Mr. Anderson.
For the third quarter of 2026, the Company is lowering its noninterest expense guidance to be in the range of $54 million to $57 million, assuming capital markets revenue and loan growth are within the guidance ranges and includes the Company’s continued investments in digital transformation initiatives. “This outlook reflects our approach to expense management under our 9/6/5 strategic model, which is designed to keep annual noninterest expense growth below 5%, driving operating leverage, improving efficiency, and enhancing profitability,” added Mr. Anderson.
Continued Strong Asset Quality
Nonperforming assets (“NPAs”) totaled $39.5 million at the end of the second quarter of 2026, a decrease of $3.4 million from the prior quarter, which resulted in the NPA to total assets ratio improving by 4 basis points to 0.41%. The ratio of criticized loans to total loans and leases also improved to 1.91%, the lowest level since the fourth quarter of 2019.
The Company recorded a total provision for credit losses of $4.7 million during the second quarter, compared to $2.5 million in the first quarter, reflecting loan growth in the current quarter and the prior quarter’s benefit from a reversal of credit loss expense related to loans transferred to held for sale. Net charge-offs were $3.3 million during the second quarter of 2026, a decline of $0.6 million from the prior quarter, 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 declined by 2 basis points from the prior quarter, to 1.24%.
Earnings Growth Drives TBV Per Share1 Expansion
The Company’s TBV per share¹ increased by $2.17, or 15% annualized, during the second quarter of 2026. This growth was driven by strong earnings during the quarter partially offset by share repurchases.
As of June 30, 2026, the tangible common equity to tangible assets ratio¹ increased 40 basis points to 10.71%, the common equity tier 1 ratio increased 14 basis points to 10.68%, and the total risk-based capital ratio increased 13 basis points to 14.13%. These quarterly changes reflect the combined impact of strong earnings, loan sales, and share repurchases during the quarter. By comparison, these ratios were 10.31%, 10.54%, and 14.00%, respectively, as of March 31, 2026.
Continued Opportunistic Share Repurchases
The Company continued share repurchases during the second quarter consistent with capital allocation priorities, returning approximately $13.5 million of capital to shareholders at an attractive multiple relative to tangible book value¹. Since the Company
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began repurchasing shares in 2025, it has purchased over 675 thousand shares, approximately 4% of total shares outstanding, returning $55.9 million of capital to shareholders. The share repurchase program authorized in October 2025 enhances the Company’s capital allocation flexibility and allows for organic growth, shareholder returns, and capital strength while reinforcing confidence in the Company’s long-term outlook.
Conference Call Details
The Company will host an earnings call/webcast tomorrow, July 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 July 30, 2026. The replay access information is 855-669-9658 (international 412-317-0088); access code 5347347. 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 June 30, 2026, the Company had $9.5 billion in assets, $7.0 billion in loans and $7.4 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 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
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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) emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or customers; (xxiii) changes in the interest rates and repayment rates of the Company’s assets; (xxiv) the effectiveness of the Company’s risk management framework; and (xxv) the ability of the Company to manage the risks associated with the foregoing. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the SEC.
Contact:
Doug Neumann
VP, Investor Relations
(309) 743-7753
dneumann@qcrh.com
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QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
| | As of | |||||||||||||
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | |||||
| | 2026 | | 2026 | | 2025 | | 2025 | | 2025 | |||||
| | | (dollars in thousands) | ||||||||||||
CONDENSED BALANCE SHEET | | | | | | | | | | | | | | | |
Cash and due from banks | | $ | 111,342 | | $ | 80,038 | | $ | 76,494 | | $ | 77,581 | | $ | 104,769 |
Federal funds sold and interest-bearing deposits | | | 80,408 | | | 39,290 | | | 76,399 | | | 84,738 | | | 90,120 |
Securities, net of allowance for credit losses | | | 1,401,408 | | | 1,324,750 | | | 1,312,310 | | | 1,308,689 | | | 1,263,452 |
Loans receivable held for sale (1) | | | 3,731 | | | 524,931 | | | 1,429 | | | 1,457 | | | 1,162 |
Loans/leases receivable held for investment | | | 7,029,199 | | | 6,760,569 | | | 7,165,526 | | | 7,177,464 | | | 6,923,762 |
Allowance for credit losses | | | (87,185) | | | (85,459) | | | (90,127) | | | (88,770) | | | (88,732) |
Intangibles | | | 7,068 | | | 7,574 | | | 8,080 | | | 9,077 | | | 9,738 |
Goodwill | | | 138,595 | | | 138,595 | | | 138,595 | | | 138,595 | | | 138,595 |
Derivatives | | | 211,178 | | | 209,836 | | | 188,409 | | | 202,703 | | | 178,002 |
Other assets | | | 624,899 | | | 613,571 | | | 621,079 | | | 576,401 | | | 558,899 |
Total assets | | $ | 9,520,643 | | $ | 9,613,695 | | $ | 9,498,194 | | $ | 9,487,935 | | $ | 9,179,767 |
| | | | | | | | | | | | | | | |
Total deposits | | $ | 7,417,334 | | $ | 7,770,850 | | $ | 7,414,198 | | $ | 7,380,068 | | $ | 7,318,353 |
Total borrowings | | | 660,315 | | | 418,257 | | | 638,541 | | | 706,827 | | | 509,359 |
Derivatives | | | 131,921 | | | 149,836 | | | 137,051 | | | 150,375 | | | 146,941 |
Other liabilities | | | 161,316 | | | 152,288 | | | 196,093 | | | 163,750 | | | 154,560 |
Total stockholders’ equity | | | 1,149,757 | | | 1,122,464 | | | 1,112,311 | | | 1,086,915 | | | 1,050,554 |
Total liabilities and stockholders’ equity | | $ | 9,520,643 | | $ | 9,613,695 | | $ | 9,498,194 | | $ | 9,487,935 | | $ | 9,179,767 |
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ANALYSIS OF LOAN PORTFOLIO | | | | | | | | | | | | | | | |
Loan/lease mix: (2) | | | | | | | | | | | | | | | |
Commercial and industrial - revolving | | $ | 407,419 | | $ | 376,284 | | $ | 384,656 | | $ | 386,674 | | $ | 380,029 |
Commercial and industrial - other | | | 1,080,335 | | | 1,059,148 | | | 1,094,064 | | | 1,107,896 | | | 1,180,859 |
Commercial and industrial - other - LIHTC | | | 129,578 | | | 237,125 | | | 224,802 | | | 222,772 | | | 194,830 |
Total commercial and industrial | | | 1,617,332 | | | 1,672,557 | | | 1,703,522 | | | 1,717,342 | | | 1,755,718 |
Commercial real estate, owner occupied | | | 589,928 | | | 588,098 | | | 577,352 | | | 586,578 | | | 593,675 |
Commercial real estate, non-owner occupied | | | 966,873 | | | 1,000,673 | | | 1,036,655 | | | 1,053,732 | | | 1,036,049 |
Construction and land development | | | 630,909 | | | 608,039 | | | 566,891 | | | 515,787 | | | 454,022 |
Construction and land development - LIHTC | | | 574,644 | | | 693,591 | | | 741,531 | | | 1,028,978 | | | 1,075,000 |
Multi-family | | | 359,993 | | | 355,349 | | | 340,080 | | | 316,353 | | | 301,432 |
Multi-family - LIHTC | | | 1,511,247 | | | 1,582,573 | | | 1,429,251 | | | 1,187,243 | | | 950,331 |
Direct financing leases | | | 6,382 | | | 7,947 | | | 9,533 | | | 11,090 | | | 12,880 |
1-4 family real estate | | | 613,664 | | | 618,973 | | | 603,683 | | | 599,838 | | | 592,253 |
Consumer | | | 161,958 | | | 157,700 | | | 158,457 | | | 161,980 | | | 153,564 |
Total loans/leases | | $ | 7,032,930 | | $ | 7,285,500 | | $ | 7,166,955 | | $ | 7,178,921 | | $ | 6,924,924 |
Less allowance for credit losses | | | 87,185 | | | 85,459 | | | 90,127 | | | 88,770 | | | 88,732 |
Net loans/leases | | $ | 6,945,745 | | $ | 7,200,041 | | $ | 7,076,828 | | $ | 7,090,151 | | $ | 6,836,192 |
| | | | | | | | | | | | | | | |
ANALYSIS OF SECURITIES PORTFOLIO | | | | | | | | | | | | | | | |
Securities mix: | | | | | | | | | | | | | | | |
U.S. government sponsored agency securities | | $ | 13,928 | | $ | 15,059 | | $ | 16,024 | | $ | 14,208 | | $ | 14,267 |
Municipal securities | | | 1,126,055 | | | 1,081,102 | | | 1,081,274 | | | 1,085,669 | | | 1,033,642 |
Residential mortgage-backed and related securities | | | 88,515 | | | 86,222 | | | 68,855 | | | 57,108 | | | 58,864 |
Asset backed securities | | | 3,769 | | | 4,076 | | | 4,439 | | | 4,918 | | | 6,684 |
Other securities | | | 53,456 | | | 55,845 | | | 58,143 | | | 63,824 | | | 67,358 |
Trading securities (3) | | | 115,967 | | | 82,728 | | | 83,857 | | | 83,225 | | | 82,900 |
Total securities | | $ | 1,401,690 | | $ | 1,325,032 | | $ | 1,312,592 | | $ | 1,308,952 | | $ | 1,263,715 |
Less allowance for credit losses | | | 282 | | | 282 | | | 282 | | | 263 | | | 263 |
Net securities | | $ | 1,401,408 | | $ | 1,324,750 | | $ | 1,312,310 | | $ | 1,308,689 | | $ | 1,263,452 |
| | | | | | | | | | | | | | | |
ANALYSIS OF DEPOSITS | | | | | | | | | | | | | | | |
Deposit mix: | | | | | | | | | | | | | | | |
Noninterest-bearing demand deposits | | $ | 1,022,346 | | $ | 982,696 | | $ | 945,513 | | $ | 931,774 | | $ | 952,032 |
Interest-bearing demand deposits | | | 5,399,818 | | | 5,634,742 | | | 5,196,438 | | | 5,176,364 | | | 5,087,783 |
Time deposits | | | 840,346 | | | 968,914 | | | 1,035,317 | | | 1,004,980 | | | 974,341 |
Brokered deposits | | | 154,824 | | | 184,498 | | | 236,930 | | | 266,950 | | | 304,197 |
Total deposits | | $ | 7,417,334 | | $ | 7,770,850 | | $ | 7,414,198 | | $ | 7,380,068 | | $ | 7,318,353 |
| | | | | | | | | | | | | | | |
ANALYSIS OF BORROWINGS | | | | | | | | | | | | | | | |
Borrowings mix: | | | | | | | | | | | | | | | |
Term FHLB advances | | $ | 10,609 | | $ | 10,609 | | $ | 10,383 | | $ | 145,383 | | $ | 145,383 |
Overnight FHLB advances | | | 258,000 | | | 15,000 | | | 235,000 | | | 145,000 | | | 80,000 |
Other borrowings | | | 99,430 | | | 107,457 | | | 107,395 | | | 130,609 | | | — |
Other short-term borrowings | | | 8,907 | | | 1,950 | | | 2,650 | | | 2,850 | | | 1,350 |
Subordinated notes | | | 234,312 | | | 234,217 | | | 234,122 | | | 234,027 | | | 233,701 |
Junior subordinated debentures | | | 49,057 | | | 49,024 | | | 48,991 | | | 48,958 | | | 48,925 |
Total borrowings | | $ | 660,315 | | $ | 418,257 | | $ | 638,541 | | $ | 706,827 | | $ | 509,359 |
| (1) | There were no loans identified for LIHTC securitization or LIHTC loan sales as of June 30, 2026, $522.9 million identified and included in LHFS at March 31, 2026, and none as of December 31, 2025, September 30, 2025, or June 30, 2025. |
| (2) | Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.3 billion at June 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 | |||||||||||||
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | |||||
| | 2026 | | 2026 | | 2025 | | 2025 | | 2025 | |||||
| | | (dollars in thousands, except per share data) | ||||||||||||
INCOME STATEMENT | | | | | | | | | | | | | | | |
Interest income | | $ | 121,027 | | $ | 120,091 | | $ | 127,491 | | $ | 125,015 | | $ | 120,247 |
Interest expense | | | 53,111 | | | 52,653 | | | 59,137 | | | 60,216 | | | 58,165 |
Net interest income | | | 67,916 | | | 67,438 | | | 68,354 | | | 64,799 | | | 62,082 |
Provision for credit losses | | | 4,708 | | | 2,454 | | | 5,499 | | | 4,305 | | | 4,043 |
Net interest income after provision for credit losses | | $ | 63,208 | | $ | 64,984 | | $ | 62,855 | | $ | 60,494 | | $ | 58,039 |
| | | | | | | | | | | | | | | |
Trust fees (1) | | $ | 4,281 | | $ | 3,894 | | $ | 3,749 | | $ | 3,544 | | $ | 3,395 |
Investment advisory and management fees (1) | | | 1,551 | | | 1,539 | | | 1,504 | | | 1,488 | | | 1,254 |
Deposit service fees | | | 2,115 | | | 1,973 | | | 2,092 | | | 2,231 | | | 2,187 |
Gains on sales of residential real estate loans, net | | | 507 | | | 614 | | | 666 | | | 529 | | | 556 |
Capital markets revenue | | | 15,392 | | | 10,701 | | | 24,481 | | | 23,832 | | | 9,869 |
Earnings on bank-owned life insurance | | | 1,025 | | | 931 | | | 888 | | | 952 | | | 998 |
Debit card fees | | | 1,752 | | | 1,659 | | | 1,640 | | | 1,648 | | | 1,648 |
Correspondent banking fees | | | 747 | | | 693 | | | 699 | | | 664 | | | 699 |
Loan related fee income | | | 1,066 | | | 950 | | | 930 | | | 846 | | | 1,096 |
Fair value gain (loss) on derivatives and trading securities | | | 802 | | | (869) | | | 800 | | | 324 | | | 230 |
Other | | | 189 | | | 867 | | | 1,216 | | | 593 | | | 183 |
Total noninterest income | | $ | 29,427 | | $ | 22,952 | | $ | 38,665 | | $ | 36,651 | | $ | 22,115 |
| | | | | | | | | | | | | | | |
Salaries and employee benefits | | $ | 32,120 | | $ | 31,389 | | $ | 36,898 | | $ | 34,338 | | $ | 28,474 |
Occupancy and equipment expense | | | 7,342 | | | 7,479 | | | 7,364 | | | 7,363 | | | 6,837 |
Professional and data processing fees | | | 5,597 | | | 5,162 | | | 7,303 | | | 6,741 | | | 6,089 |
FDIC insurance, other insurance and regulatory fees | | | 1,973 | | | 2,072 | | | 2,232 | | | 2,035 | | | 1,960 |
Loan/lease expense | | | 291 | | | 106 | | | 378 | | | 345 | | | 407 |
Net cost of (income from) and gains/losses on operations of other real estate | | | (11) | | | 16 | | | 36 | | | 3 | | | 50 |
Advertising and marketing | | | 1,822 | | | 1,775 | | | 2,346 | | | 1,830 | | | 1,746 |
Communication and data connectivity | | | 243 | | | 202 | | | 184 | | | 40 | | | 274 |
Supplies | | | 265 | | | 233 | | | 238 | | | 259 | | | 252 |
Bank service charges | | | 711 | | | 664 | | | 706 | | | 678 | | | 720 |
Losses on debt extinguishment, net | | | — | | | — | | | 1,963 | | | — | | | — |
Correspondent banking expense | | | 335 | | | 333 | | | 329 | | | 338 | | | 314 |
Intangibles amortization | | | 506 | | | 506 | | | 997 | | | 662 | | | 661 |
Payment card processing | | | 496 | | | 508 | | | 577 | | | 569 | | | 547 |
Trust expense | | | 455 | | | 474 | | | 436 | | | 412 | | | 413 |
Other | | | 1,012 | | | 1,206 | | | 865 | | | 974 | | | 839 |
Total noninterest expense | | $ | 53,157 | | $ | 52,125 | | $ | 62,852 | | $ | 56,587 | | $ | 49,583 |
| | | | | | | | | | | | | | | |
Net income before income taxes | | $ | 39,478 | | $ | 35,811 | | $ | 38,668 | | $ | 40,558 | | $ | 30,571 |
Federal and state income tax expense | | | 3,227 | | | 2,428 | | | 3,004 | | | 3,844 | | | 1,552 |
Net income | | $ | 36,251 | | $ | 33,383 | | $ | 35,664 | | $ | 36,714 | | $ | 29,019 |
| | | | | | | | | | | | | | | |
Basic EPS | | $ | 2.20 | | $ | 2.00 | | $ | 2.13 | | $ | 2.17 | | $ | 1.71 |
Diluted EPS | | $ | 2.19 | | $ | 1.99 | | $ | 2.12 | | $ | 2.16 | | $ | 1.71 |
| | | | | | | | | | | | | | | |
Weighted average common shares outstanding | | | 16,489,987 | | | 16,651,808 | | | 16,756,717 | | | 16,919,785 | | | 16,928,542 |
Weighted average common and common equivalent shares outstanding | | | 16,569,815 | | | 16,741,541 | | | 16,858,672 | | | 17,015,730 | | | 17,006,282 |
| (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 Six Months Ended | ||||
| | June 30, | | June 30, | ||
| | 2026 | | 2025 | ||
| | | (dollars in thousands, except per share data) | |||
INCOME STATEMENT | | | | | | |
Interest income | | $ | 241,118 | | $ | 236,920 |
Interest expense | | | 105,764 | | | 114,852 |
Net interest income | | | 135,354 | | | 122,068 |
Provision for credit losses | | | 7,162 | | | 8,277 |
Net interest income after provision for credit losses | | $ | 128,192 | | $ | 113,791 |
| | | | | | |
Trust fees (1) | | $ | 8,175 | | $ | 7,081 |
Investment advisory and management fees (1) | | | 3,090 | | | 2,508 |
Deposit service fees | | | 4,088 | | | 4,370 |
Gains on sales of residential real estate loans, net | | | 1,121 | | | 853 |
Capital markets revenue | | | 26,093 | | | 16,385 |
Earnings on bank-owned life insurance | | | 1,956 | | | 1,522 |
Debit card fees | | | 3,411 | | | 3,136 |
Correspondent banking fees | | | 1,440 | | | 1,313 |
Loan related fee income | | | 2,016 | | | 1,994 |
Fair value loss on derivatives and trading securities | | | (67) | | | (777) |
Other | | | 1,056 | | | 622 |
Total noninterest income | | $ | 52,379 | | $ | 39,007 |
| | | | | | |
Salaries and employee benefits | | $ | 63,509 | | $ | 55,838 |
Occupancy and equipment expense | | | 14,821 | | | 13,292 |
Professional and data processing fees | | | 10,759 | | | 11,233 |
FDIC insurance, other insurance and regulatory fees | | | 4,045 | | | 3,930 |
Loan/lease expense | | | 397 | | | 788 |
Net cost of and gains/losses on operations of other real estate | | | 5 | | | 41 |
Advertising and marketing | | | 3,597 | | | 3,359 |
Communication and data connectivity | | | 445 | | | 564 |
Supplies | | | 498 | | | 459 |
Bank service charges | | | 1,375 | | | 1,316 |
Correspondent banking expense | | | 668 | | | 643 |
Intangibles amortization | | | 1,012 | | | 1,322 |
Payment card processing | | | 1,004 | | | 1,141 |
Trust expense | | | 929 | | | 770 |
Other | | | 2,218 | | | 1,426 |
Total noninterest expense | | $ | 105,282 | | $ | 96,122 |
| | | | | | |
Net income before income taxes | | $ | 75,289 | | $ | 56,676 |
Federal and state income tax expense | | | 5,655 | | | 1,860 |
Net income | | $ | 69,634 | | $ | 54,816 |
| | | | | | |
Basic EPS | | $ | 4.20 | | $ | 3.24 |
Diluted EPS | | $ | 4.18 | | $ | 3.22 |
| | | | | | |
Weighted average common shares outstanding | | | 16,570,898 | | | 16,914,663 |
Weighted average common and common equivalent shares outstanding | | | 16,655,678 | | | 17,010,136 |
| (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 Six Months Ended | ||||||||||||||||
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | | | June 30, | | | June 30, | |||||
| | 2026 | | 2026 | | 2025 | | 2025 | | 2025 | | | 2026 | | | 2025 | |||||
| | | (dollars in thousands, except per share data) | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | |
COMMON SHARE DATA | | | | | | | | | | | | | | | | | | | | | |
Common shares outstanding | | | 16,367,268 | | | 16,496,102 | | | 16,690,603 | | | 16,838,866 | | | 16,934,698 | | | | | | |
Book value per common share (1) | | $ | 70.25 | | $ | 68.04 | | $ | 66.64 | | $ | 64.55 | | $ | 62.04 | | | | | | |
Tangible book value per common share (Non-GAAP) (2) | | $ | 61.35 | | $ | 59.18 | | $ | 57.86 | | $ | 55.78 | | $ | 53.28 | | | | | | |
Closing stock price | | $ | 97.35 | | $ | 85.45 | | $ | 83.30 | | $ | 75.64 | | $ | 67.90 | | | | | | |
Market capitalization | | $ | 1,593,354 | | $ | 1,409,592 | | $ | 1,390,327 | | $ | 1,273,692 | | $ | 1,149,866 | | | | | | |
Market price / book value | | | 138.58% | | | 125.58% | | | 124.99% | | | 117.18% | | | 109.45% | | | | | | |
Market price / tangible book value | | | 158.68% | | | 144.38% | | | 143.98% | | | 135.61% | | | 127.45% | | | | | | |
Earnings per common share (basic) LTM (3) | | $ | 8.50 | | $ | 8.01 | | $ | 7.54 | | $ | 7.21 | | $ | 6.69 | | | | | | |
Price earnings ratio LTM (3) | | | 11.45x | | | 10.67 x | | | 11.05 x | | | 10.49 x | | | 10.15 x | | | | | | |
TCE / TA (Non-GAAP) (4) | | | 10.71% | | | 10.31% | | | 10.33% | | | 10.06% | | | 9.99% | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,122,464 | | $ | 1,112,311 | | $ | 1,086,915 | | $ | 1,050,554 | | $ | 1,022,747 | | | | | | |
Net income | | | 36,251 | | | 33,383 | | | 35,664 | | | 36,714 | | | 29,019 | | | | | | |
Other comprehensive income (loss), net of tax | | | 4,354 | | | (1,879) | | | 1,981 | | | 8,342 | | | (1,671) | | | | | | |
Common stock cash dividends declared | | | (1,652) | | | (1,674) | | | (1,011) | | | (1,017) | | | (1,016) | | | | | | |
Repurchase and cancellation of shares of common stock as a result of a share repurchase program | | | (13,469) | | | (20,842) | | | (12,635) | | | (8,993) | | | — | | | | | | |
Other (5) | | | 1,809 | | | 1,165 | | | 1,397 | | | 1,315 | | | 1,475 | | | | | | |
Ending balance | | $ | 1,149,757 | | $ | 1,122,464 | | $ | 1,112,311 | | $ | 1,086,915 | | $ | 1,050,554 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
REGULATORY CAPITAL RATIOS (6): | | | | | | | | | | | | | | | | | | | | | |
Total risk-based capital ratio | | | 14.13% | | | 14.00% | | | 14.19% | | | 14.03% | | | 14.26% | | | | | | |
Tier 1 risk-based capital ratio | | | 11.18% | | | 11.05% | | | 11.02% | | | 10.85% | | | 10.96% | | | | | | |
Tier 1 leverage capital ratio | | | 11.65% | | | 11.44% | | | 11.07% | | | 11.29% | | | 11.22% | | | | | | |
Common equity tier 1 ratio | | | 10.68% | | | 10.54% | | | 10.52% | | | 10.34% | | | 10.43% | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
KEY PERFORMANCE RATIOS AND OTHER METRICS | | | | | | | | | | | | | | | | | | | | | |
Return on average assets (annualized) | | | 1.51% | | | 1.40% | | | 1.46% | | | 1.57% | | | 1.27% | | | 1.46% | | | 1.21% |
Return on average total equity (annualized) | | | 12.64% | | | 11.75% | | | 12.78% | | | 13.65% | | | 11.15% | | | 12.20% | | | 10.65% |
Net interest margin | | | 3.10% | | | 3.13% | | | 3.06% | | | 3.00% | | | 2.97% | | | 3.12% | | | 2.95% |
Net interest margin TEY (Non-GAAP)(7) | | | 3.55% | | | 3.58% | | | 3.57% | | | 3.51% | | | 3.46% | | | 3.56% | | | 3.45% |
Efficiency ratio (Non-GAAP) (8) | | | 54.61% | | | 57.67% | | | 58.73% | | | 55.78% | | | 58.89% | | | 56.08% | | | 59.68% |
Gross loans/leases held for investment / total assets | | | 73.83% | | | 70.32% | | | 75.44% | | | 75.65% | | | 75.42% | | | 73.83% | | | 74.91% |
Gross loans/leases held for investment / total deposits | | | 94.77% | | | 87.00% | | | 96.65% | | | 97.25% | | | 94.61% | | | 94.77% | | | 94.61% |
Effective tax rate | | | 8.17% | | | 6.78% | | | 7.77% | | | 9.48% | | | 5.08% | | | 7.51% | | | 3.28% |
Full-time equivalent employees | | | 1,001 | | | 997 | | | 1,004 | | | 994 | | | 1,001 | | | 1,001 | | | 1,001 |
| | | | | | | | | | | | | | | | | | | | | |
AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | | |
Assets | | $ | 9,581,171 | | $ | 9,550,010 | | $ | 9,758,848 | | $ | 9,354,411 | | $ | 9,155,473 | | | 9,565,677 | | $ | 9,085,843 |
Loans/leases | | | 7,182,293 | | | 7,183,312 | | | 7,292,592 | | | 7,048,314 | | | 6,881,731 | | | 7,182,800 | | | 6,836,274 |
Deposits | | | 7,613,397 | | | 7,650,696 | | | 7,620,212 | | | 7,383,373 | | | 7,218,540 | | | 7,631,944 | | | 7,182,612 |
Total stockholders’ equity | | | 1,147,382 | | | 1,136,307 | | | 1,116,342 | | | 1,075,715 | | | 1,041,428 | | | 1,141,875 | | | 1,029,524 |
| (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 | ||||||||||||||||||||||
| | June 30, 2026 | | March 31, 2026 | | June 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 | | $ | 5,264 | | $ | 52 | | 3.91% | | $ | 8,003 | | $ | 73 | | 3.64% | | $ | 14,285 | | $ | 159 | | 4.40% |
Interest-bearing deposits at financial institutions | | | 150,092 | | | 1,353 | | 3.62% | | | 167,670 | | | 1,488 | | 3.60% | | | 151,898 | | | 1,634 | | 4.31% |
Investment securities - taxable | | | 426,526 | | | 4,755 | | 4.47% | | | 410,342 | | | 4,962 | | 4.84% | | | 401,657 | | | 4,805 | | 4.79% |
Investment securities - nontaxable (1) | | | 989,220 | | | 15,537 | | 6.29% | | | 943,300 | | | 14,049 | | 5.97% | | | 893,753 | | | 12,872 | | 5.76% |
Restricted investment securities | | | 30,028 | | | 519 | | 6.84% | | | 24,525 | | | 385 | | 6.28% | | | 34,037 | | | 622 | | 7.23% |
Loans (1) | | | 7,182,293 | | | 108,623 | | 6.07% | | | 7,183,312 | | | 108,881 | | 6.15% | | | 6,881,731 | | | 110,245 | | 6.43% |
Total earning assets (1) | | $ | 8,783,423 | | $ | 130,839 | | 5.97% | | $ | 8,737,152 | | $ | 129,838 | | 6.02% | | $ | 8,377,361 | | $ | 130,337 | | 6.24% |
| | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits | | $ | 5,519,231 | | $ | 36,251 | | 2.63% | | $ | 5,451,672 | | $ | 35,493 | | 2.64% | | $ | 5,080,367 | | $ | 38,604 | | 3.05% |
Time deposits | | | 1,080,345 | | | 9,543 | | 3.54% | | | 1,208,298 | | | 11,061 | | 3.71% | | | 1,193,035 | | | 12,409 | | 4.17% |
Short-term borrowings | | | 3,138 | | | 30 | | 3.82% | | | 3,244 | | | 27 | | 3.36% | | | 1,420 | | | 15 | | 4.23% |
Federal Home Loan Bank advances | | | 153,279 | | | 1,384 | | 3.57% | | | 41,827 | | | 297 | | 2.84% | | | 250,603 | | | 2,853 | | 4.50% |
Other borrowings | | | 107,389 | | | 1,265 | | 4.71% | | | 107,416 | | | 1,167 | | 4.35% | | | — | | | — | | N/A |
Subordinated notes | | | 234,250 | | | 3,923 | | 6.70% | | | 234,155 | | | 3,920 | | 6.70% | | | 233,631 | | | 3,599 | | 6.16% |
Junior subordinated debentures | | | 49,035 | | | 716 | | 5.78% | | | 49,002 | | | 687 | | 5.61% | | | 48,904 | | | 685 | | 5.54% |
Total interest-bearing liabilities | | $ | 7,146,667 | | $ | 53,112 | | 2.98% | | $ | 7,095,614 | | $ | 52,652 | | 3.00% | | $ | 6,807,960 | | $ | 58,165 | | 3.42% |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income (1) | | | | | $ | 77,727 | | | | | | | $ | 77,186 | | | | | | | $ | 72,172 | | |
Net interest margin | | | | | | | | 3.10% | | | | | | | | 3.13% | | | | | | | | 2.97% |
Net interest margin TEY (Non-GAAP) (1) (2) | | | | | | | | 3.55% | | | | | | | | 3.58% | | | | | | | | 3.46% |
Cost of funds (3) | | | | | | | | 2.61% | | | | | | | | 2.64% | | | | | | | | 3.01% |
| | For the Six Months Ended | ||||||||||||||
| | June 30, 2026 | | June 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 | | $ | 6,626 | | $ | 125 | | 3.74% | | $ | 11,662 | | $ | 258 | | 4.40% |
Interest-bearing deposits at financial institutions | | | 158,832 | | | 2,841 | | 3.61% | | | 159,356 | | | 3,438 | | 4.35% |
Investment securities - taxable | | | 418,479 | | | 9,717 | | 4.65% | | | 401,220 | | | 9,393 | | 4.69% |
Investment securities - nontaxable (1) | | | 966,387 | | | 29,586 | | 6.13% | | | 868,754 | | | 24,594 | | 5.67% |
Restricted investment securities | | | 27,292 | | | 904 | | 6.59% | | | 32,309 | | | 1,156 | | 7.12% |
Loans (1) | | | 7,182,800 | | | 217,504 | | 6.11% | | | 6,836,274 | | | 217,684 | | 6.42% |
Total earning assets (1) | | $ | 8,760,416 | | $ | 260,677 | | 5.99% | | $ | 8,309,575 | | $ | 256,523 | | 6.22% |
| | | | | | | | | | | | | | | | |
Interest-bearing deposits | | $ | 5,485,639 | | $ | 71,745 | | 2.64% | | $ | 5,041,914 | | $ | 76,302 | | 3.05% |
Time deposits | | | 1,143,968 | | | 20,604 | | 3.63% | | | 1,198,782 | | | 25,098 | | 4.22% |
Short-term borrowings | | | 3,191 | | | 58 | | 3.57% | | | 1,629 | | | 33 | | 4.05% |
Federal Home Loan Bank advances | | | 97,861 | | | 1,680 | | 3.42% | | | 214,444 | | | 4,849 | | 4.50% |
Other borrowings | | | 107,402 | | | 2,431 | | 4.53% | | | — | | | — | | N/A |
Subordinated notes | | | 234,202 | | | 7,843 | | 6.70% | | | 233,579 | | | 7,201 | | 6.17% |
Junior subordinated debentures | | | 49,019 | | | 1,403 | | 5.69% | | | 48,888 | | | 1,369 | | 5.57% |
Total interest-bearing liabilities | | $ | 7,121,282 | | $ | 105,764 | | 2.99% | | $ | 6,739,236 | | $ | 114,852 | | 3.43% |
| | | | | | | | | | | | | | | | |
Net interest income (1) | | | | | $ | 154,913 | | | | | | | $ | 141,671 | | |
Net interest margin | | | | | | | | 3.12% | | | | | | | | 2.95% |
Net interest margin TEY (Non-GAAP) (1) (2) | | | | | | | | 3.56% | | | | | | | | 3.45% |
Cost of funds (3) | | | | | | | | 2.62% | | | | | | | | 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 | |||||||||||||
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | |||||
| | 2026 | | 2026 | | 2025 | | 2025 | | 2025 | |||||
| | | (dollars in thousands) | ||||||||||||
| | | | | | | | | | | | | | | |
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES | | | | | | | | | | | | | | | |
Beginning balance | | $ | 85,459 | | $ | 90,127 | | $ | 88,770 | | $ | 88,732 | | $ | 90,354 |
Change in ACL for transfer of loans to LHFS | | | 374 | | | (3,450) | | | — | | | — | | | — |
Provision for credit losses | | | 4,652 | | | 2,688 | | | 5,562 | | | 4,225 | | | 4,667 |
Loans/leases charged off | | | (3,573) | | | (4,447) | | | (4,469) | | | (4,746) | | | (6,490) |
Recoveries on loans/leases previously charged off | | | 273 | | | 541 | | | 264 | | | 559 | | | 201 |
Ending balance | | $ | 87,185 | | $ | 85,459 | | $ | 90,127 | | $ | 88,770 | | $ | 88,732 |
| | | | | | | | | | | | | | | |
NONPERFORMING ASSETS | | | | | | | | | | | | | | | |
Nonaccrual loans/leases | | $ | 39,139 | | $ | 41,823 | | $ | 42,212 | | $ | 42,167 | | $ | 42,482 |
Accruing loans/leases past due 90 days or more | | | 1 | | | 35 | | | 85 | | | 43 | | | 7 |
Total nonperforming loans/leases | | | 39,140 | | | 41,858 | | | 42,297 | | | 42,210 | | | 42,489 |
Other real estate owned | | | 350 | | | 540 | | | 540 | | | — | | | 62 |
Other repossessed assets | | | 20 | | | 500 | | | 500 | | | 510 | | | 113 |
Total nonperforming assets | | $ | 39,510 | | $ | 42,898 | | $ | 43,337 | | $ | 42,720 | | $ | 42,664 |
| | | | | | | | | | | | | | | |
ASSET QUALITY RATIOS | | | | | | | | | | | | | | | |
Nonperforming assets / total assets | | | 0.41% | | | 0.45% | | | 0.45% | | | 0.45% | | | 0.46% |
ACL for loans and leases / total loans/leases held for investment | | | 1.24% | | | 1.26% | | | 1.26% | | | 1.24% | | | 1.28% |
ACL for loans and leases / nonperforming loans/leases | | | 222.75% | | | 204.16% | | | 213.08% | | | 210.31% | | | 208.84% |
Net charge-offs as a % of average loans/leases | | | 0.05% | | | 0.05% | | | 0.06% | | | 0.06% | | | 0.09% |
| | | | | | | | | | | | | | | |
INTERNALLY ASSIGNED RISK RATING (1) | | | | | | | | | | | | | | | |
Special mention | | $ | 69,706 | | $ | 82,819 | | $ | 74,765 | | $ | 76,750 | | $ | 68,621 |
Substandard (2) | | | 64,519 | | | 63,491 | | | 64,142 | | | 67,319 | | | 81,040 |
Doubtful (2) | | | — | | | — | | | — | | | — | | | — |
Total Criticized loans (3) | | $ | 134,225 | | $ | 146,310 | | $ | 138,907 | | $ | 144,069 | | $ | 149,661 |
| | | | | | | | | | | | | | | |
Classified loans as a % of total loans/leases (2) | | | 0.92% | | | 0.87% | | | 0.89% | | | 0.94% | | | 1.17% |
Total Criticized loans as a % of total loans/leases (3) | | | 1.91% | | | 2.01% | | | 1.94% | | | 2.01% | | | 2.16% |
(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. |
11
QCR Holdings, Inc.
Consolidated Financial Highlights
(Unaudited)
| | For the Quarter Ended | | For the Six Months Ended | |||||||||||
| | June 30, | | March 31, | | June 30, | | June 30, | | June 30, | |||||
SELECT FINANCIAL DATA - SUBSIDIARIES | | 2026 | | 2026 | | 2025 | | 2026 | | 2025 | |||||
| | | (dollars in thousands) | ||||||||||||
| | | | | | | | | | | | | | | |
TOTAL ASSETS | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | $ | 2,787,394 | | $ | 3,105,984 | | $ | 2,662,450 | | | | | | |
m2 Equipment Finance, LLC | | | 130,764 | | | 155,889 | | | 242,722 | | | | | | |
Cedar Rapids Bank and Trust | | | 2,880,251 | | | 2,848,359 | | | 2,664,293 | | | | | | |
Community State Bank | | | 1,745,280 | | | 1,740,480 | | | 1,605,966 | | | | | | |
Guaranty Bank | | | 2,377,330 | | | 2,418,895 | | | 2,365,944 | | | | | | |
| | | | | | | | | | | | | | | |
TOTAL DEPOSITS | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | $ | 2,393,789 | | $ | 2,726,530 | | $ | 2,309,942 | | | | | | |
Cedar Rapids Bank and Trust | | | 2,075,070 | | | 1,979,934 | | | 1,884,370 | | | | | | |
Community State Bank | | | 1,263,222 | | | 1,313,221 | | | 1,272,296 | | | | | | |
Guaranty Bank | | | 1,879,401 | | | 1,775,974 | | | 1,866,749 | | | | | | |
| | | | | | | | | | | | | | | |
TOTAL LOANS & LEASES | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | $ | 1,895,840 | | $ | 2,048,394 | | $ | 2,032,168 | | | | | | |
m2 Equipment Finance, LLC | | | 135,065 | | | 160,877 | | | 250,019 | | | | | | |
Cedar Rapids Bank and Trust | | | 2,011,688 | | | 2,020,322 | | | 1,852,316 | | | | | | |
Community State Bank | | | 1,291,151 | | | 1,317,469 | | | 1,206,735 | | | | | | |
Guaranty Bank | | | 1,834,251 | | | 1,899,315 | | | 1,833,706 | | | | | | |
| | | | | | | | | | | | | | | |
TOTAL LOANS & LEASES / TOTAL DEPOSITS | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | | 79% | | | 75% | | | 88% | | | | | | |
Cedar Rapids Bank and Trust | | | 97% | | | 102% | | | 98% | | | | | | |
Community State Bank | | | 102% | | | 100% | | | 95% | | | | | | |
Guaranty Bank | | | 98% | | | 107% | | | 98% | | | | | | |
| | | | | | | | | | | | | | | |
TOTAL LOANS & LEASES / TOTAL ASSETS | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | | 68% | | | 66% | | | 76% | | | | | | |
Cedar Rapids Bank and Trust | | | 70% | | | 71% | | | 70% | | | | | | |
Community State Bank | | | 74% | | | 76% | | | 75% | | | | | | |
Guaranty Bank | | | 77% | | | 79% | | | 78% | | | | | | |
| | | | | | | | | | | | | | | |
ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | | 1.17% | | | 1.30% | | | 1.32% | | | | | | |
m2 Equipment Finance, LLC | | | 5.05% | | | 4.96% | | | 4.26% | | | | | | |
Cedar Rapids Bank and Trust | | | 1.19% | | | 1.32% | | | 1.35% | | | | | | |
Community State Bank | | | 1.00% | | | 1.04% | | | 1.09% | | | | | | |
Guaranty Bank | | | 1.53% | | | 1.32% | | | 1.29% | | | | | | |
| | | | | | | | | | | | | | | |
RETURN ON AVERAGE ASSETS (ANNUALIZED) | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | | 1.59% | | | 1.33% | | | 1.24% | | | 1.46% | | | 1.28% |
Cedar Rapids Bank and Trust | | | 3.03% | | | 2.49% | | | 2.36% | | | 2.75% | | | 2.25% |
Community State Bank | | | 1.34% | | | 1.36% | | | 1.31% | | | 1.34% | | | 1.19% |
Guaranty Bank | | | 0.66% | | | 1.24% | | | 0.85% | | | 0.95% | | | 0.79% |
| | | | | | | | | | | | | | | |
NET INTEREST MARGIN PERCENTAGE (2) | | | | | | | | | | | | | | | |
Quad City Bank and Trust (1) | | | 3.15% | | | 3.24% | | | 3.45% | | | 3.19% | | | 3.45% |
Cedar Rapids Bank and Trust | | | 3.99% | | | 3.99% | | | 3.99% | | | 3.99% | | | 4.00% |
Community State Bank | | | 3.91% | | | 3.91% | | | 3.87% | | | 3.91% | | | 3.83% |
Guaranty Bank | | | 3.27% | | | 3.45% | | | 3.11% | | | 3.36% | | | 3.08% |
(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 | |||||||||||||
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | |||||
GAAP TO NON-GAAP RECONCILIATIONS | | 2026 | | 2026 | | 2025 | | 2025 | | 2025 | |||||
| | (dollars in thousands, except per share data) | |||||||||||||
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1) | | | | | | | | | | | | | | | |
Stockholders’ equity (GAAP) | | $ | 1,149,757 | | $ | 1,122,464 | | $ | 1,112,311 | | $ | 1,086,915 | | $ | 1,050,554 |
Less: Intangible assets | | | 145,663 | | | 146,169 | | | 146,675 | | | 147,672 | | | 148,333 |
Tangible common equity (non-GAAP) | | $ | 1,004,094 | | $ | 976,295 | | $ | 965,636 | | $ | 939,243 | | $ | 902,221 |
| | | | | | | | | | | | | | | |
Total assets (GAAP) | | $ | 9,520,643 | | $ | 9,613,695 | | $ | 9,498,194 | | $ | 9,487,935 | | $ | 9,179,767 |
Less: Intangible assets | | | 145,663 | | | 146,169 | | | 146,675 | | | 147,672 | | | 148,333 |
Tangible assets (non-GAAP) | | $ | 9,374,980 | | $ | 9,467,526 | | $ | 9,351,519 | | $ | 9,340,263 | | $ | 9,031,434 |
| | | | | | | | | | | | | | | |
Tangible common equity to tangible assets ratio (non-GAAP) | | | 10.71% | | | 10.31% | | | 10.33% | | | 10.06% | | | 9.99% |
| | | | | | | | | | | | | | | |
TANGIBLE BOOK VALUE PER SHARE (1) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Tangible common equity (non-GAAP) | | $ | 1,004,094 | | $ | 976,295 | | $ | 965,636 | | $ | 939,243 | | $ | 902,221 |
| | | | | | | | | | | | | | | |
Common shares outstanding | | | 16,367,268 | | | 16,496,102 | | | 16,690,603 | | | 16,838,866 | | | 16,934,698 |
| | | | | | | | | | | | | | | |
Tangible book value per common share (Non-GAAP) | | $ | 61.35 | | $ | 59.18 | | $ | 57.86 | | $ | 55.78 | | $ | 53.28 |
| (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 Six Months Ended | |||||||||||||||||
| | June 30, | | March 31, | | December 31, | | September 30, | | June 30, | | June 30, | | June 30, | |||||||
ADJUSTED NET INCOME (1) | | 2026 | | 2026 | | 2025 | | 2025 | | 2025 | | 2026 | | 2025 | |||||||
| | | (dollars in thousands, except per share data) | ||||||||||||||||||
Net income (GAAP) | | $ | 36,251 | | $ | 33,383 | | $ | 35,664 | | $ | 36,714 | | $ | 29,019 | | $ | 69,634 | | $ | 54,816 |
| | | | | | | | | | | | | | | | | | | | | |
Less non-core items (post-tax) (2): | | | | | | | | | | | | | | | | | | | | | |
Income: | | | | | | | | | | | | | | | | | | | | | |
Fair value loss on derivatives, net | | | (4) | | | (13) | | | (88) | | | (223) | | | (397) | | | (17) | | | (553) |
Total adjusted income (non-GAAP) | | $ | (4) | | $ | (13) | | $ | (88) | | $ | (223) | | $ | (397) | | $ | (17) | | $ | (553) |
| | | | | | | | | | | | | | | | | | | | | |
Expense: | | | | | | | | | | | | | | | | | | | | | |
Losses on debt extinguishment, net | | | — | | | — | | | 1,551 | | | — | | | — | | | — | | | — |
Total adjusted expense (non-GAAP) | | $ | — | | $ | — | | $ | 1,551 | | $ | — | | $ | — | | $ | — | | $ | — |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted net income (non-GAAP) (1) | | $ | 36,255 | | $ | 33,396 | | $ | 37,303 | | $ | 36,937 | | $ | 29,416 | | $ | 69,651 | | $ | 55,369 |
| | | | | | | | | | | | | | | | | | | | | |
ADJUSTED EARNINGS PER COMMON SHARE (1) | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted net income (non-GAAP) (from above) | | $ | 36,255 | | $ | 33,396 | | $ | 37,303 | | $ | 36,937 | | $ | 29,416 | | $ | 69,651 | | $ | 55,369 |
| | | | | | | | | | | | | | | | | | | | | |
Weighted average common shares outstanding | | | 16,489,987 | | | 16,651,808 | | | 16,756,717 | | | 16,919,785 | | | 16,928,542 | | | 16,570,898 | | | 16,914,663 |
Weighted average common and common equivalent shares outstanding | | | 16,569,815 | | | 16,741,541 | | | 16,858,672 | | | 17,015,730 | | | 17,006,282 | | | 16,655,678 | | | 17,010,136 |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted earnings per common share (non-GAAP): | | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 2.20 | | $ | 2.01 | | $ | 2.23 | | $ | 2.18 | | $ | 1.74 | | $ | 4.20 | | $ | 3.27 |
Diluted | | $ | 2.19 | | $ | 1.99 | | $ | 2.21 | | $ | 2.17 | | $ | 1.73 | | $ | 4.18 | | $ | 3.26 |
| | | | | | | | | | | | | | | | | | | | | |
ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1) | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted net income (non-GAAP) (from above) | | $ | 36,255 | | $ | 33,396 | | $ | 37,303 | | $ | 36,937 | | $ | 29,416 | | $ | 69,651 | | $ | 55,369 |
| | | | | | | | | | | | | | | | | | | | | |
Average Assets | | $ | 9,581,171 | | $ | 9,550,010 | | $ | 9,758,848 | | $ | 9,354,411 | | $ | 9,155,473 | | $ | 9,565,677 | | $ | 9,085,843 |
| | | | | | | | | | | | | | | | | | | | | |
Adjusted return on average assets (annualized) (non-GAAP) | | | 1.51% | | | 1.40% | | | 1.53% | | | 1.58% | | | 1.29% | | | 1.46% | | | 1.22% |
Adjusted return on average equity (annualized) (non-GAAP) | | | 12.64% | | | 11.76% | | | 13.37% | | | 13.73% | | | 11.30% | | | 12.20% | | | 10.76% |
| | | | | | | | | | | | | | | | | | | | | |
NET INTEREST MARGIN TEY (3) | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Net interest income (GAAP) | | $ | 67,916 | | $ | 67,438 | | $ | 68,354 | | $ | 64,799 | | $ | 62,082 | | $ | 135,354 | | $ | 122,068 |
Plus: Tax equivalent adjustment (4) | | | 9,811 | | | 9,748 | | | 11,277 | | | 10,864 | | | 10,090 | | | 19,559 | | | 19,603 |
Net interest income - tax equivalent (non-GAAP) | | $ | 77,727 | | $ | 77,186 | | $ | 79,631 | | $ | 75,663 | | $ | 72,172 | | $ | 154,913 | | $ | 141,671 |
| | | | | | | | | | | | | | | | | | | | | |
Average earning assets | | $ | 8,783,423 | | $ | 8,737,152 | | $ | 8,872,022 | | $ | 8,575,514 | | $ | 8,377,361 | | $ | 8,760,416 | | $ | 8,309,575 |
| | | | | | | | | | | | | | | | | | | | | |
Net interest margin (GAAP) | | | 3.10% | | | 3.13% | | | 3.06% | | | 3.00% | | | 2.97% | | | 3.12% | | | 2.95% |
Net interest margin TEY (non-GAAP) | | | 3.55% | | | 3.58% | | | 3.57% | | | 3.51% | | | 3.46% | | | 3.56% | | | 3.45% |
| | | | | | | | | | | | | | | | | | | | | |
EFFICIENCY RATIO (5) | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Noninterest expense (GAAP) | | $ | 53,157 | | $ | 52,125 | | $ | 62,852 | | $ | 56,587 | | $ | 49,583 | | $ | 105,282 | | $ | 96,122 |
| | | | | | | | | | | | | | | | | | | | | |
Net interest income (GAAP) | | $ | 67,916 | | $ | 67,438 | | $ | 68,354 | | $ | 64,799 | | $ | 62,082 | | $ | 135,354 | | $ | 122,068 |
Noninterest income (GAAP) | | | 29,427 | | | 22,952 | | | 38,665 | | | 36,651 | | | 22,115 | | | 52,379 | | | 39,007 |
Total income | | $ | 97,343 | | $ | 90,390 | | $ | 107,019 | | $ | 101,450 | | $ | 84,197 | | $ | 187,733 | | $ | 161,075 |
| | | | | | | | | | | | | | | | | | | | | |
Efficiency ratio (noninterest expense/total income) (non-GAAP) | | | 54.61% | | | 57.67% | | | 58.73% | | | 55.78% | | | 58.89% | | | 56.08% | | | 59.68% |
Adjusted efficiency ratio (adjusted noninterest expense/adjusted total income) (non-GAAP) | | | 54.61% | | | 57.66% | | | 56.84% | | | 55.62% | | | 58.54% | | | 56.07% | | | 59.42% |
| (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. |
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