QCR Holdings Reports $36.3 Million Net Income and 28% EPS Growth in Q2 2026

QCR Holdings, Inc. reported a net income of $36.3 million for the second quarter of 2026, translating to diluted earnings per share (EPS) of $2.19, a 28% increase from $1.71 in the same quarter of the previous year. For the first half of 2026, the company achieved a net income of $69.6 million, up from $54.8 million in the first half of 2025, with diluted EPS rising from $3.22 to $4.18. The increase in profitability was attributed to a combination of higher net interest income and noninterest income, alongside effective cost management.

Total interest income for the second quarter of 2026 was $121.0 million, slightly up from $120.2 million in the same quarter of 2025. The net interest income after provisions for credit losses was $63.2 million, compared to $58.0 million a year earlier. The provision for credit losses increased to $4.7 million from $4.0 million in the prior year, reflecting loan growth and a slight uptick in nonperforming loans. Noninterest income surged to $29.4 million, a 33% increase year-over-year, driven by significant growth in capital markets revenue, which rose 56% to $15.4 million.

In terms of operational metrics, QCR Holdings reported total assets of $9.5 billion as of June 30, 2026, a modest increase from $9.5 billion at the end of 2025. The company’s loan portfolio decreased to $6.9 billion, down from $7.1 billion at the end of the previous year, primarily due to the planned runoff of certain loan portfolios. Deposits remained stable at $7.4 billion, with a slight increase in noninterest-bearing deposits. The company’s allowance for credit losses on loans and leases was $87.2 million, representing 1.24% of total loans.

Strategically, QCR Holdings has focused on enhancing its capital markets operations, particularly in low-income housing tax credit (LIHTC) lending, which has shown strong demand. The company successfully executed $443.6 million in LIHTC loan offtake transactions during the quarter. Additionally, the company has been actively managing its funding sources, reducing reliance on higher-cost deposits while increasing core deposits. The company also repurchased 149,639 shares of common stock during the quarter as part of its ongoing share repurchase program.

Looking ahead, QCR Holdings aims to maintain its growth trajectory while managing interest rate risk and improving operational efficiencies. 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. Management remains optimistic about the company’s ability to navigate market conditions and capitalize on growth opportunities in its core banking and capital markets businesses.