QCR Holdings reported record diluted EPS of $2.21 for the third quarter of 2026, exceeding analyst estimates of $2.09. Total revenue of $99.2 million missed expectations of $108.97 million, largely due to the timing of several capital markets transactions shifting into the final quarter of the year. Despite the revenue miss, the company achieved record earnings through disciplined funding costs and significant improvements in asset quality.
Key Highlights
- Net interest margin (TEY) expanded 3 basis points to 3.58%, surpassing guidance and driven by higher average noninterest-bearing deposits.
- Asset quality reached multi-year highs as nonperforming assets improved to 0.39% of total assets, the lowest level since 2024.
- Loan growth remained robust at 11% annualized when excluding the planned runoff of the m2 Equipment Finance portfolio.
- Capital markets revenue totaled $16.9 million, up 10% linked-quarter, supported by sustained demand for Low-Income Housing Tax Credit (LIHTC) originations.
- Efficiency ratio remained strong at 55.2%, with year-to-date revenue growth of 9.3% outpacing expense growth of 4.8%.