QCR Holdings, Inc. announced financial results for the quarter ended September 30, 2026, reporting a record net income of $36.4 million. This figure represents diluted earnings per share (EPS) of $2.21, marking the highest level in the company's history. The results compare favorably to the second quarter of 2026, where net income was $36.3 million and EPS was $2.19, and the third quarter of 2025, where net income was $36.7 million and EPS was $2.16.
Key operational metrics for the quarter included a return on average assets (ROAA) of 1.52%. The company’s net interest margin on a tax-equivalent yield basis expanded by 3 basis points to 3.58%. Net interest income for the third quarter was $68.7 million, a 5% annualized increase from the prior quarter. This growth was supported by disciplined funding costs and higher average noninterest-bearing deposits.
Noninterest income totaled $30.5 million for the third quarter, driven by strong performance in capital markets and wealth management. Capital markets revenue reached $16.9 million, an increase of 10% from the linked quarter, while wealth management revenue was $5.7 million, up 12% year-over-year. Total loans increased by $167.0 million, or 9% annualized, excluding the planned runoff of the m2 Equipment Finance portfolio. The company reaffirmed its gross loan growth guidance of 10% to 15% annualized for the fourth quarter of 2026.
Asset quality metrics showed continued improvement. Nonperforming assets (NPAs) improved to 0.39% of total assets, the lowest level since 2024. Total criticized loans decreased to $120.4 million, or 1.67% of total loans and leases, the lowest percentage since 2019. The company recorded a provision for credit losses of $4.5 million and net charge-offs of $3.1 million during the quarter.
Regarding capital management, the company repurchased approximately 94,861 shares of common stock during the quarter for $9.5 million. As of September 30, 2026, tangible book value per share increased to $61.79, representing 11% year-over-year growth. The company’s common equity tier 1 ratio increased to 11.01%, and the total risk-based capital ratio increased to 14.50%.
The company expects its effective tax rate to remain in the range of 8% to 10% for the fourth quarter of 2026. A conference call to discuss these results is scheduled for October 21, 2026, at 10:00 a.m. Central Time.
