QCR Holdings Reports Strong Q3 Earnings
News related to:QCR Holdings, Inc · 2 min read
QCR Holdings, Inc. announced record diluted earnings per share (EPS) of $2.21 for the third quarter of 2026, with net income totaling $36.4 million. The company also reported a 1.52% return on average assets (ROAA), marking a significant improvement from the second quarter of 2026, where the ROAA was 1.49%.
QCR Holdings, Inc. saw its net income rise by $36.3 million from the second quarter of 2026, and by $36.7 million from the third quarter of 2025. The company's President and Chief Executive Officer, Todd Gipple, highlighted that the quarter's results were bolstered by margin expansion, robust loan growth, increased capital markets revenue, and solid wealth management revenue.
The company's 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. The net interest margin (NIM) on a tax-equivalent yield (TEY) basis expanded by 3 basis points to 3.58%, driven by disciplined funding costs and higher average noninterest-bearing deposits. Despite a decline in average earning assets due to strategic LIHTC loan offtakes, the NIM TEY1 remained strong.
In terms of capital markets revenue, QCR Holdings, Inc. reported $16.9 million for the third quarter of 2026, up 10% from the previous quarter. This revenue growth was attributed to the company's ability to generate attractive fee income without requiring corresponding balance sheet growth. The wealth management revenue for the quarter was $5.7 million, up 12% year-over-year, reflecting the continued expansion of client relationships and growth in assets under management.
The company's loan portfolio saw a robust growth of 11% annualized, with total loans increasing by $167.0 million, or 9% annualized, excluding the planned m2 portfolio runoff. The runoff of m2 loans, which amounted to $105.6 million, did not impact the total loan growth. As of September 30, 2026, total loans were $7.2 billion, reflecting the strategic sale or securitization of $730.0 million of LIHTC loans and the runoff of m2 loans.
QCR Holdings, Inc. also reported a significant improvement in asset quality, with nonperforming assets (NPAs) decreasing to 0.39% of total assets, marking the lowest level in two years. The company's capital markets revenue remained strong, driven by sustained demand for affordable housing and the strength of its LIHTC team. The company's allowance for credit losses to total loans held for investment was 1.23%, a decline of 1 basis point from the previous quarter.
The company's tangible book value per share increased to $61.79 at September 30, 2026, representing 11% year-over-year growth. The company continued to repurchase shares, with $9.5 million in share repurchases during the quarter, reflecting confidence in the company's long-term outlook. The company's common equity tier 1 ratio increased to 11.01%, and the total risk-based capital ratio increased to 14.50%, reflecting strong earnings and share repurchases during the quarter.
QCR Holdings, Inc. reaffirmed its guidance for gross loan growth of 10% to 15% annualized for the fourth quarter of 2026, driven by solid loan production trends and a strong pipeline heading into year-end. The company's fourth-quarter noninterest expense guidance remains within the range of $54 to $57 million, assuming capital markets revenue and loan growth are within the guidance ranges.