Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______to________ Commission file number 0-22208 QCR HOLDINGS, INC. (Exact name of Registrant as specified in its charter) Delaware 42-1397595 (I.R.S. ...

Core Insights - QCR Holdings, Inc. has selected Jack Henry to modernize its technology infrastructure and standardize operations across its four subsidiary banks, aiming for a data-driven growth strategy [1][3]. Company Overview - QCR Holdings, Inc. is a $9 billion financial services company with four community-focused banks operating in Iowa, Illinois, and Missouri, providing commercial, retail, and wealth management services [2]. Technology Transition - QCR Holdings is transitioning all four banks to Jack Henry's modern core processing platform, which will enhance technology foundations while maintaining each bank's autonomy [3]. - The integration of products like Enterprise Workflow and Synergy is expected to streamline operations and improve efficiency [3]. Strategic Alignment - The partnership with Jack Henry is seen as crucial for enhancing client and employee experiences, improving efficiency, and reducing costs while preserving the banks' independence [4]. - Jack Henry's Data Hub will provide real-time data access and facilitate efficient system integrations, supporting QCR Holdings' growth plans [4]. Future Growth Potential - QCR Holdings aims for sustainable growth beyond its near-term goal of $10 billion in assets, with Jack Henry's technology aligning with its future innovation strategy [4]. - The focus is on enhancing client relationships while maintaining the personal service that characterizes their community banking approach [4].

Group 1 - The article does not provide any specific content related to a company or industry [1]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

QCR (NasdaqGM:QCRH) Q3 2025 Earnings Call October 23, 2025 11:00 AM ET Company ParticipantsTodd Gipple - President and CEODamon DelMonte - Managing Director of Equity ResearchNick Anderson - CFODaniel Tamayo - VPConference Call ParticipantsNathan Race - MD and Senior Research AnalystJeff Rulis - MD and Senior Research AnalystBrian Martin - Director and Senior Equity Research AnalystOperatorGood morning, and thank you for joining us today for QCR Holdings, Inc.'s third quarter 2025 earnings conference call. ...

Financial Data and Key Metrics Changes - The company achieved record quarterly adjusted net income of $37 million, or $2.17 per diluted share, reflecting strong performance across core businesses [19] - Earnings per share grew by 26% compared to the second quarter [4] - Net interest income increased by $3 million, or 18% annualized, supported by net interest margin expansion and exceptional loan growth [19] - Non-interest income totaled $37 million for the third quarter, driven primarily by $24 million in capital markets revenue [22] - The efficiency ratio improved to 55.8%, the lowest in four years [23] Business Line Data and Key Metrics Changes - Capital markets revenue rebounded to $24 million, up $14 million from the prior quarter [19] - Wealth management revenue surpassed $5 million, an 8% increase over the prior quarter, with year-over-year growth of 15% annualized [22][8] - Total loans grew by $254 million, or 15% annualized, with a planned runoff from M2 Equipment Finance loans and leases factored in [24] - LIHTC lending business showed exceptional performance, with strong demand for affordable housing and new relationships established with 10 experienced developers [9][10] Market Data and Key Metrics Changes - Core deposits increased by $410 million, or 8% annualized year-to-date [25] - Total criticized loans decreased by 9% year-to-date, reflecting improved asset quality [16] - The company reported a decline in net charge-offs and total NPAs to total asset ratio, which decreased to 0.45% [26] Company Strategy and Development Direction - The company is focused on a digital transformation strategy, aiming to enhance efficiency and reduce long-term operating costs [7] - The multi-charter community banking model is designed to capture market share from competitors [6] - The company anticipates continued progress in LIHTC lending and capital markets revenue, with guidance for capital markets revenue increased to a range of $55 million-$65 million over the next four quarters [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustaining loan growth momentum, guiding for gross annualized loan growth in a range of 10%-15% for the fourth quarter [6] - The company remains well-positioned to benefit from future rate reductions, with expectations of NIM accretion for every 25 basis point cut in rates [20] - Management highlighted the importance of maintaining strong regulatory capital while being opportunistic with share repurchases [17] Other Important Information - The company returned $10 million of capital to shareholders through share repurchases [16] - A new share repurchase program was approved, authorizing the repurchase of up to 1.7 million shares [17] - The effective tax rate for the quarter was 9.5%, up from 5% in the prior quarter, primarily due to higher pre-tax income [30] Q&A Session Summary Question: Margin guidance and rate cuts - Management confirmed that the margin guidance of 3-7 basis points of expansion does not include any rate cuts, and each 25 basis point cut could lead to an additional 2-3 basis point increase in margin [36][37] Question: Future buybacks - Management indicated that they will remain active in share repurchases due to higher earnings per share and reduced need to retain capital for organic growth [38][39] Question: Securitization appetite and timing - Management anticipates a large permanent loan securitization in the first half of next year, aiming for a larger inventory to enhance profitability [46] Question: Loan growth expectations for next year - Management expects loan growth to remain in the double digits, with a more accurate forecast to be provided in January [56] Question: One-time costs related to conversions - Management indicated that one-time costs related to conversions are included in the fourth quarter expense guidance, with expectations for savings from these conversions in the future [63][70] Question: Reserves trend - Management does not expect the allowance for credit losses to drop significantly, as recent reductions have been due to resolving NPAs and charge-offs from the M2 Equipment Finance portfolio [72] Question: Capital capacity for buybacks - Management stated that they have capacity for buybacks while balancing other capital needs, emphasizing opportunistic repurchases at attractive valuations [94]

Financial Data and Key Metrics Changes - The company achieved record quarterly adjusted net income of $37 million, or $2.17 per diluted share, reflecting strong performance across core businesses [20] - Earnings per share grew by 26% compared to the second quarter [4] - Net interest income increased by $3 million, or 18% annualized, supported by net interest margin (NIM) expansion and exceptional loan growth [20] - NIM on a tax-equivalent yield basis increased by five basis points from the second quarter [20] - Non-interest income totaled $37 million for the third quarter, driven primarily by capital markets revenue [24] Business Line Data and Key Metrics Changes - Capital markets revenue rebounded to $24 million, up $14 million from the prior quarter [20] - Wealth management revenue surpassed $5 million, an 8% increase over the prior quarter, with year-over-year growth of 15% annualized [24][9] - Loan growth accelerated significantly, increasing by $286 million, or 17% annualized, with a 15% increase net of planned runoff from M2 Equipment Finance loans and leases [5][26] Market Data and Key Metrics Changes - Core deposits grew at an annual rate of 6% for the quarter, totaling $410 million, or 8% annualized year to date [6][27] - Total criticized loans improved during the quarter, decreasing 9% year to date [18] - Total provision for credit losses was $4 million, slightly up from the previous quarter, due to loan growth partially offset by improved credit quality [28] Company Strategy and Development Direction - The company operates through three primary lines of business: traditional banking, wealth management, and LIHTC lending platform, all of which delivered improved performance [6] - The digital transformation initiative is on track, with key milestones achieved, including the successful conversion of the core operating system for the first charter [8] - The company is increasing guidance for capital markets revenue to a range of $55 million to $65 million over the next four quarters [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustaining loan growth momentum, guiding for gross annualized loan growth in a range of 10% to 15% for the fourth quarter [6] - The company remains committed to maintaining strong regulatory capital while assessing its capital structure to support growth objectives [31] - Management noted that the demand for affordable housing remains high, positioning the LIHTC lending business for growth [10] Other Important Information - The company returned $10 million of capital to shareholders through share repurchases [18] - A new share repurchase program was approved, authorizing the repurchase of up to 1.7 million shares of outstanding common stock [19] - The effective tax rate for the quarter was 9.5%, up from 5% in the prior quarter, primarily due to higher pre-tax income [32] Q&A Session Summary Question: Margin guidance and rate cuts - Management confirmed that the margin guidance of three to seven basis points of expansion does not include any rate cuts, and each 25 basis point cut could see an additional 2 to 3 basis point increase [35][36] Question: Future buybacks - Management indicated that they will remain active in buybacks due to higher earnings per share and reduced need to retain capital for organic growth [36] Question: Securitization appetite and timing - Management anticipates a large permanent loan securitization in the first half of next year, targeting around $350 million [41] Question: NII impact from loan sales and securitizations - Management stated that any give-up in net interest income (NII) from loan sales would likely be replaced by improved capital markets revenue [45] Question: Loan growth expectations for next year - Management expects loan growth to continue in the double digits, with a more accurate guide to be provided in January [50] Question: One-time costs related to conversions - Management indicated that there will be $4 to $5 million of NII expense in 2025 related to conversions, expected to decrease in subsequent years [58] Question: Reserves trend - Management does not expect the allowance for credit losses to drop significantly, as recent reductions have been due to resolving non-performing assets [61]

Financial Data and Key Metrics Changes - The company achieved record quarterly adjusted net income of $37 million or $2.17 per diluted share, reflecting strong performance across core businesses [21] - Earnings per share grew by 26% compared to the second quarter, driven by robust loan growth and net interest margin expansion [4][21] - Net interest income increased by $3 million or 18% annualized, supported by continued net interest margin expansion [21] Business Line Data and Key Metrics Changes - Loan growth accelerated significantly, increasing by $286 million or 17% annualized, with a 15% increase net of planned runoff from M2 Equipment Finance loans and leases [6][29] - Wealth management revenue grew by $5 million, an 8% increase over the prior quarter, and year-over-year revenue is up $1.5 million or 15% annualized [10][25] - Capital markets revenue rebounded to $24 million, up $14 million from the prior quarter, exceeding the upper end of guidance [21][25] Market Data and Key Metrics Changes - Core deposits increased by $410 million or 8% annualized year to date, reflecting the success of the relationship-driven strategy [29] - Total criticized loans decreased by 9% year to date, indicating improved asset quality [18][30] Company Strategy and Development Direction - The company operates through three primary lines of business: traditional banking, wealth management, and LITEC lending, all of which delivered improved performance [6][10] - The digital transformation initiative is on track, with key milestones achieved, including the successful conversion of the core operating system for one of the charters [7][9] - The company is focused on maintaining strong regulatory capital while exploring innovative ways to expand LITEC lending capacity [15][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustaining loan growth momentum, guiding for gross annualized loan growth in a range of 10% to 15% for the fourth quarter [6] - The company anticipates continued core margin expansion and is guiding for an increase in fourth quarter NIM TEY ranging from three to seven basis points [24] - Management noted that asset quality remains excellent, with net charge-offs declining compared to the second quarter [18][30] Other Important Information - The company returned $10 million of capital to shareholders through share repurchases and announced a new share repurchase program for up to 1.7 million shares [18][19] - The effective tax rate for the quarter was 9.5%, up from 5% in the prior quarter, primarily due to higher pretax income [36] Q&A Session Summary Question: Margin guidance and rate cuts - Management confirmed that the margin guidance of three to seven basis points does not include any rate cuts [39][40] Question: Future buyback activity - Management indicated that they will remain active in buybacks due to higher earnings per share and reduced need to retain capital for organic growth [42][44] Question: Appetite for additional securitizations - Management anticipates a large permanent loan securitization in the first half of next year, targeting around $350 million [50] Question: NII impact from construction loan sales - Management stated that any NII give-up from construction loan sales is expected to be replaced by improved capital markets revenue [52][54] Question: Loan growth expectations for next year - Management expects loan growth to be in the double digits based on current pipelines [61] Question: One-time costs related to conversions - Management indicated that there will be some one-time costs associated with conversions, estimated to be in the range of $4 million to $5 million for 2025 [77] Question: Trends in reserves - Management noted that reserves may continue to trend down as a percentage of loans, but they do not expect significant further reductions [81]

Core Insights - QCR Holdings reported $101.45 million in revenue for Q3 2025, a year-over-year increase of 16.8% and a surprise of +11.79% over the Zacks Consensus Estimate of $90.75 million [1] - The EPS for the same period was $2.17, compared to $1.78 a year ago, with an EPS surprise of +25.43% against the consensus estimate of $1.73 [1] Financial Performance Metrics - Efficiency Ratio (Non-GAAP) was 55.8%, slightly above the three-analyst average estimate of 55.4% [4] - Net interest margin (GAAP) was reported at 3%, below the three-analyst average estimate of 3.5% [4] - Average Balance of Total earning assets was $8.58 billion, slightly above the $8.55 billion average estimate based on two analysts [4] - Net charge-offs as a percentage of average loans/leases were 0.1%, better than the 0.3% estimated by two analysts [4] - Total noninterest income reached $36.65 million, significantly higher than the $26.32 million average estimate based on three analysts [4] - Gains on sales of residential real estate loans were $0.53 million, slightly below the $0.63 million estimated by three analysts [4] - Capital markets revenue was $23.83 million, exceeding the two-analyst average estimate of $14 million [4] - Deposit service fees totaled $2.23 million, in line with the $2.2 million average estimate based on two analysts [4] - Net Interest Income was $64.8 million, surpassing the $64.27 million estimated by two analysts [4] - Net interest income - tax equivalent (non-GAAP) was $75.66 million, compared to the $74.64 million average estimate based on two analysts [4] Stock Performance - Shares of QCR Holdings have returned -8.5% over the past month, contrasting with the Zacks S&P 500 composite's +1.1% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

QCR Holdings (QCRH) came out with quarterly earnings of $2.17 per share, beating the Zacks Consensus Estimate of $1.73 per share. This compares to earnings of $1.78 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +25.43%. A quarter ago, it was expected that this bank holding company would post earnings of $1.63 per share when it actually produced earnings of $1.73, delivering a surprise of +6.13%.Over the last four quarters, t ...