QCR Holdings Reports $33.4 Million Net Income and 31% EPS Growth in Q1 2026

QCR Holdings, Inc. reported a net income of $33.4 million for the first quarter of 2026, translating to diluted earnings per share (EPS) of $1.99, a 31% increase from the $25.8 million net income and $1.52 EPS recorded in the same period last year. This performance reflects a year-over-year growth in net interest income, which rose 12% to $67.4 million, driven by higher average earning assets and investment yields. However, net interest income decreased slightly by 1% compared to the previous quarter, primarily due to lower loan yields.

The company’s total assets increased to $9.6 billion as of March 31, 2026, up from $9.5 billion at the end of 2025. This growth was supported by a $356.7 million increase in total deposits, which reached $7.8 billion, while total borrowings decreased significantly by 34% to $418.3 million. The allowance for credit losses on loans and leases was $85.5 million, representing 1.26% of total loans, consistent with the previous quarter but down from 1.32% a year earlier. The company reported a provision for credit losses of $2.5 million, a decrease from $4.2 million in the prior year, reflecting improved asset quality.

Strategically, QCR Holdings has focused on expanding its loan portfolio, achieving an annualized growth rate of 8% in the first quarter, excluding the runoff of its m2 portfolio. The company has also emphasized its correspondent banking business, serving 190 banks and managing significant noninterest-bearing deposits. Additionally, QCR Holdings has continued to execute interest rate swaps to manage interest rate risk, which has contributed to a capital markets revenue of $10.7 million for the quarter, up from $6.5 million a year ago.

Looking ahead, QCR Holdings aims to maintain its growth trajectory while managing costs effectively. The company has set strategic financial metrics, including a target of 9% annual loan growth and a goal to limit operating expense growth to 5% per year. The management remains cautious about potential economic fluctuations and their impact on credit quality, but is optimistic about the demand for affordable housing and the overall strength of its loan portfolio.