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]

Core Insights - QCR Holdings reported quarterly earnings of $2.17 per share, exceeding the Zacks Consensus Estimate of $1.73 per share, and showing an increase from $1.78 per share a year ago, resulting in an earnings surprise of +25.43% [1] - The company achieved revenues of $101.45 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 11.79% and up from $86.88 million year-over-year [2] - QCR Holdings has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.76 on revenues of $93.5 million, while for the current fiscal year, the estimate is $6.75 on revenues of $346.55 million [7] - The estimate revisions trend for QCR Holdings was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Midwest industry, to which QCR Holdings belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Record quarterly net income of $36.7 million, or $2.16 per diluted share, representing a 26% increase compared to the second quarter of 2025[1] - Adjusted net income for the third quarter of 2025 was $36.9 million, or $2.17 per diluted share, compared to $29.4 million and $1.73 for the second quarter of 2025[2] - Net income for the third quarter of 2025 was $36.714 million, up from $29.019 million in the second quarter[40] - For the nine months ended September 30, 2025, net income was $91.530 million, an increase from $83.625 million for the same period in 2024[43] - Adjusted net income (non-GAAP) for the quarter ended September 30, 2025, was $36,937,000, compared to $29,416,000 for the same quarter in 2024, representing a 25.6% increase[66] - Total adjusted income (non-GAAP) for the quarter was $36,714,000, compared to $29,019,000 in the previous quarter, representing a 26.5% increase[66] Revenue and Income Sources - Net interest income totaled $64.8 million, an increase of $2.7 million, or 18% annualized, from the second quarter of 2025[4] - Total noninterest income for the third quarter of 2025 was $36.651 million, significantly higher than $22.115 million in the previous quarter[40] - Capital markets revenue reached $23.8 million, up 141% on a linked-quarter basis[6] - Trust fees for the nine months ended September 30, 2025, were $10.625 million, up from $9.572 million in the previous year[43] - Noninterest income (GAAP) for the quarter was $36,651,000, significantly higher than $22,115,000 in the previous quarter, indicating a 65.8% increase[66] Asset and Loan Growth - Total loans and leases held for investment grew by $253.7 million to $7.2 billion, with annualized loan growth of 17%[14] - Loans/leases receivable held for investment rose to $7,177,464 thousand, an increase of 3.67% from $6,923,762 thousand in the prior quarter[36] - Total loans and leases for Quad City Bank and Trust reached $2,118,791 thousand, an increase from $2,032,168 thousand in the previous quarter, representing a growth of 4.3%[58] Deposits and Borrowings - Total core deposits increased by $99.0 million, or 6% annualized, from the second quarter of 2025[16] - Total deposits reached $7,380,068 thousand, showing a slight increase of 0.85% compared to $7,318,353 thousand in the previous quarter[36] - Total deposits for Quad City Bank and Trust rose to $2,407,371 thousand, compared to $2,309,942 thousand in the previous quarter, marking an increase of 4.2%[58] - Total borrowings increased significantly to $706,827 thousand, up from $509,359 thousand, marking a rise of 38.76%[36] Efficiency and Ratios - The efficiency ratio improved to 55.78%, the lowest in four years[12] - The efficiency ratio (Non-GAAP) improved to 55.78%, compared to 58.89% in the previous quarter[46] - The return on average assets (annualized) increased to 1.57%, up from 1.27% in the previous quarter[46] - Adjusted return on average assets (annualized) (non-GAAP) was 1.58%, up from 1.29% in the previous quarter, reflecting a significant improvement[66] Shareholder Returns - The Company repurchased 129,056 shares at an average price of $77.49 per share, returning $10.0 million to shareholders[26] - The Board authorized a new share repurchase program for up to 1.7 million shares, approximately 10% of outstanding shares as of September 30, 2025[26] Market Capitalization and Equity - As of September 30, 2025, the company reported a market capitalization of $1,273.69 million, an increase from $1,149.87 million as of June 30, 2025[46] - Total stockholders' equity grew to $1,086,915 thousand, an increase of 3.45% from $1,050,554 thousand in the prior quarter[36] - The company’s book value per common share increased to $64.55, up from $62.04 in the previous quarter[46] Risk Factors - The company highlighted ongoing risks including increased competition in the financial services sector and potential impacts from economic conditions and regulatory changes[33] Credit Quality - The allowance for credit losses remained stable at $88,770 thousand, consistent with the previous quarter's figure of $88,732 thousand[36] - Nonperforming assets as a percentage of total assets were 0.45% as of September 30, 2025, slightly down from 0.46% in the previous quarter[55] - Total criticized loans amounted to $144,069 thousand, a decrease from $149,661 thousand in the previous quarter[55] - The ACL on loans/leases held for investment as a percentage of loans/leases held for investment for Quad City Bank and Trust was 1.24% as of September 30, 2025, down from 1.32% in June 2025[58]

Board Approves New Share Repurchase Program Authorization for Up to 1.7 Million SharesThird Quarter 2025 Highlights Record third quarter net income of $36.7 million, or $2.16 per diluted shareRecord adjusted net income1 of $36.9 million, or $2.17 per diluted shareNet interest income growth of 18% annualized and NIM TEY1 expansion of five basis points to 3.51%ROAA of 1.57% annualizedCapital markets revenue of $23.8 million, up 141% on a linked-quarter basisLoan growth of 15% annualizedTangible book value per ...

Core Insights - QCR Holdings, Inc. is a multi-bank holding company providing various financial services, operating in several communities and competing with regional banks [1] - The consensus price target for QCR Holdings is stable at $83, while Raymond James has set a lower target of $64, indicating differing analyst outlooks [2][6] - QCR Holdings reported Q2 2025 earnings of $1.73 per share, exceeding the Zacks Consensus Estimate of $1.63, but analysts predict a decline in future earnings [3][6] - In Q1 2025, the company reported earnings of $1.53 per share, slightly above the Zacks Consensus Estimate, but a decrease from the previous year [4] - The company has shown positive developments, including a 20% annualized growth in core deposits and a 14% increase in wealth management revenue [5][6] - The tangible book value per share increased by $1.43, representing an 11% annualized growth [5]

QCR Holdings (NASDAQ:QCRH) was downgraded at D.A. Davidson, citing that the bank's 2026 growth and profitability metrics should reflect a peer valuation, not a premium. Shares were -1.08% pre-market to $74.06. "Looking at a projected below average growth profile and ...

Core Viewpoint - QCR Holdings, Inc. will release its third quarter financial results on October 22, 2025, and will host a conference call on October 23, 2025, to discuss these results [1]. Financial Results Announcement - The financial results for the third quarter ended September 30, 2025, will be released after market close on October 22, 2025 [1]. - A conference call and webcast will take place on October 23, 2025, at 10:00 a.m. Central Time [1]. Teleconference Details - Dial-in information for the call is 888-346-9286 (international 412-317-5253) [2]. - The event will be archived and available for replay until October 30, 2025, with replay access information provided [2]. Webcast Information - A webcast of the teleconference can be accessed on the Company's News and Events page at www.qcrh.com, with an archived version available shortly after the live event [3]. Company Overview - QCR Holdings, Inc. is a multi-bank holding company based in Moline, Illinois, serving various communities through its subsidiary banks [4]. - The Company operates 36 locations across Iowa, Missouri, and Illinois, providing full-service commercial and consumer banking, as well as trust and wealth management services [4]. - As of June 30, 2025, QCR Holdings had $9.2 billion in assets, $6.9 billion in loans, and $7.3 billion in deposits [4].

Group 1 - KBRA assigns a rating of BBB- with a Stable Outlook to the subordinated notes issued by QCR Holdings, Inc. [1] - The subordinated notes consist of two offerings: $50 million due September 15, 2035 and $20 million due September 15, 2037 [1] - The $50 million note is callable on the fifth anniversary of issuance, while the $20 million note is callable on the seventh anniversary [1]

Core Points - QCR Holdings, Inc. has completed private placements of $70 million in subordinated notes, consisting of $50 million in 6.875% Fixed-to-Floating Rate Subordinated Notes due September 2035 and $20 million in 7.225% Fixed-to-Floating Subordinated Notes due September 2037 [1][2][3] - The net proceeds from these placements will be used for general corporate purposes, including the redemption of previously announced subordinated notes [1][2] - The issuance supports the company's long-term growth strategy and reinforces its financial strength [2] Financial Details - The 2035 Notes will have a fixed interest rate of 6.875% for the first five years, transitioning to a floating rate thereafter, expected to be the three-month term SOFR plus 350 basis points [2] - The 2037 Notes will have a fixed interest rate of 7.225% for the first seven years, also transitioning to a floating rate, expected to be the three-month term SOFR plus 375 basis points [3] - The blended interest rate for the new issuances is below 7%, indicating a strong transaction [2] Company Overview - QCR Holdings, Inc. is a multi-bank holding company based in Moline, Illinois, serving various communities through its subsidiary banks [5] - As of June 30, 2025, the company reported $9.2 billion in assets, $6.8 billion in loans, and $7.3 billion in deposits [5]