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1. Company Snapshot

1.a. Company Description

QCR Holdings, Inc., a multi-bank holding company, provides commercial and consumer banking, and trust and asset management services.Its deposit products include noninterest-bearing demand, interest-bearing demand, time, and brokered deposits.The company also provides various commercial and retail lending/leasing, and investment services to corporations, partnerships, individuals, and government agencies.


Its loan portfolio comprises loans to small and mid-sized businesses; business loans, including lines of credit for working capital and operational purposes; term loans for the acquisition of facilities, equipment, and other purposes; commercial and residential real estate loans; and installment and other consumer loans, such as home improvement, home equity, motor vehicle, and signature loans, as well as small personal credit lines.In addition, the company engages in leasing of machinery and equipment to commercial and industrial businesses under direct financing lease contracts; and issuance of trust preferred securities.It serves the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, and Springfield communities.


The company was founded in 1993 and is headquartered in Moline, Illinois.

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1.b. Last Insights on QCRH

QCR Holdings, Inc.'s recent performance was positively driven by its Q3 2025 earnings beat, with quarterly earnings of $2.17 per share exceeding the Zacks Consensus Estimate of $1.73 per share. The company completed private placements of $70 million in subordinated notes, which will be used for general corporate purposes. Additionally, QCR Holdings announced a cash dividend of $0.06 per share, payable on January 7, 2026. KBRA assigned a rating of BBB- with a Stable Outlook to the subordinated notes. The company also selected Jack Henry to modernize technology infrastructure across its four subsidiary banks.

1.c. Company Highlights

2. QCR Holdings' Exceptional Q3 2025 Earnings: A Closer Look

QCR Holdings delivered a robust financial performance in Q3 2025, with record quarterly adjusted net income of $37 million or $2.17 per diluted share, surpassing analyst estimates of $1.73. The company's net interest income increased by $3 million or 18% annualized, driven by continued net interest margin expansion and exceptional loan growth. Earnings per share grew by 26% compared to the previous quarter, highlighting the company's strong momentum.

Publication Date: Nov -26

📋 Highlights
  • Record Adjusted Net Income:: $37M ($2.17/share), driven by core business performance and 18% annualized net interest income growth.
  • Exceptional Loan Growth:: $286M increase (17% annualized), net of M2 runoff, with $560M fixed-rate loans repricing to higher yields ($6.25–$6.50).
  • Capital Markets Rebound:: $24M revenue, up $14M QoQ, and $3M net interest income increase ($18M annualized) from loan growth and margin expansion.
  • Efficiency Ratio Improvement:: 55.8% (4-year low), with core noninterest expenses up <1% annualized despite $52–$55M Q4 guidance.
  • Tangible Book Value Growth:: $2.50/share increase to nearly $56/share, supported by record earnings and $70M subordinated debt replacement.

Loan Growth and Net Interest Margin Expansion

The company achieved exceptional loan growth, with a $286 million increase or 17% annualized, driven by the LIHTC lending business. Net interest margin expansion was supported by strong earnings asset growth and higher loan and investment yields, while maintaining a static cost of funds. The net interest margin is expected to expand by 3 to 7 basis points in the fourth quarter, assuming no further Federal Reserve rate cuts.

Wealth Management and Capital Markets Revenue

Wealth management revenue grew 8% linked-quarter and is up $1.5 million or 15% annualized year-over-year, demonstrating the company's diversified revenue streams. Capital markets revenue rebounded to $24 million, up $14 million from the prior quarter, contributing to the strong noninterest income of $37 million.

Asset Quality and Credit Culture

QCR Holdings maintained excellent asset quality, with total criticized loans decreasing by 15 basis points to 2.01% of total loans and leases. The total NPAs to total assets ratio declined 1 basis point to 0.45%, reflecting the company's historically strong credit culture. The allowance for credit losses to total loans held for investment was 1.24%, indicating a prudent approach to credit risk management.

Valuation and Outlook

With a Price-to-Tangible Book Value (P/TBV) ratio of 1.27, the stock appears reasonably valued. Analysts estimate revenue growth of 9.0% next year, and the company's guidance suggests continued momentum. The dividend yield of 0.3% may not be attractive to income investors, but the company's strong financial performance and growth prospects make it an attractive investment opportunity. As Todd Gipple mentioned, "We'll be opportunistic when valuations are attractive, but will balance other capital needs as well. Buybacks are our highest and best use of capital at current valuation levels."

3. NewsRoom

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Brandywine Global Investment Management LLC Sells 1,400 Shares of QCR Holdings, Inc. $QCRH

Nov -25

Source: defenseworld.net

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QCR Holdings, Inc. Announces a Cash Dividend of $0.06 Per Share

Nov -21

Source: globenewswire.com

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QCR Holdings, Inc. Selects Jack Henry to Modernize Technology Across Four Banks

Nov -06

Source: prnewswire.com

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State of New Jersey Common Pension Fund D Buys 2,195 Shares of QCR Holdings, Inc. $QCRH

Nov -02

Source: defenseworld.net

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QCR Holdings, Inc. (QCRH) Q3 2025 Earnings Call Transcript

Oct -23

Source: seekingalpha.com

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QCR Holdings (QCRH) Reports Q3 Earnings: What Key Metrics Have to Say

Oct -23

Source: zacks.com

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QCR Holdings (QCRH) Q3 Earnings and Revenues Surpass Estimates

Oct -22

Source: zacks.com

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Cwm LLC Has $1.29 Million Position in QCR Holdings, Inc. $QCRH

Oct -21

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.79%)

6. Segments

Commercial Banking - Cedar Rapids Bank and Trust

Expected Growth: 6%

Cedar Rapids Bank and Trust's 6% growth is driven by strong loan demand, fueled by a robust Iowa economy and low unemployment. Additionally, the bank's focus on commercial and industrial lending, as well as its expansion into new markets, have contributed to its growth. Furthermore, the bank's efficient operations and solid asset quality have enabled it to maintain a strong net interest margin, supporting its growth momentum.

Commercial Banking - Quad City Bank and Trust

Expected Growth: 6%

Strong loan growth driven by commercial and industrial lending, increased deposits from commercial clients, and expansion into new markets. Effective cost management and improved operating efficiency also contributed to growth. Additionally, strategic investments in digital banking and customer relationship management systems enhanced customer experience and drove business development.

Intercompany Eliminations

Expected Growth: 0%

Intercompany eliminations from QCR Holdings, Inc. with 0% growth indicates no significant transactions between subsidiaries, suggesting a lack of synergies or internal reorganization. This could be due to a decentralized business model, minimal cross-selling, or a focus on standalone operations. As a result, there is no need for eliminations, and the company's financials are not affected by intercompany transactions.

All Other

Expected Growth: 5%

All Other segment of QCR Holdings, Inc. exhibits 5% growth driven by increasing demand for wealth management services, expansion of insurance product offerings, and strategic partnerships. Additionally, the segment benefits from rising interest income, improved operational efficiency, and effective cost management. These factors contribute to the segment's robust growth, positioning it for continued success.

Commercial Banking - Guaranty Bank

Expected Growth: 6%

Guaranty Bank's 6% growth is driven by strong loan growth, fueled by a robust commercial lending pipeline and expansion into new markets. Additionally, the bank's focus on digital transformation and customer experience has led to increased deposit growth and improved operational efficiency. Furthermore, strategic cost management and a favorable interest rate environment have contributed to the bank's growth momentum.

Commercial Banking - Community State Bank

Expected Growth: 6%

Strong loan growth driven by commercial and industrial lending, increased deposits from small business and municipal clients, and expansion into new markets. Additionally, strategic acquisitions and investments in digital banking capabilities have enhanced customer experience and improved operational efficiency, contributing to the 6% growth of Commercial Banking - Community State Bank from QCR Holdings, Inc.

7. Detailed Products

ATM Services

QCR Holdings, Inc. provides ATM services, offering a range of solutions for financial institutions, including ATM deployment, management, and maintenance.

Branch and IT Services

The company offers branch and IT services, including IT infrastructure management, help desk support, and network services, to financial institutions.

Digital Banking Services

QCR Holdings, Inc. provides digital banking services, including online banking, mobile banking, and bill pay services, to financial institutions.

Item Processing Services

The company offers item processing services, including check processing, statement rendering, and document imaging, to financial institutions.

Risk Management Services

QCR Holdings, Inc. provides risk management services, including fraud detection, compliance services, and risk assessments, to financial institutions.

8. QCR Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

QCR Holdings, Inc. operates in the financial services industry, which has a moderate threat of substitutes. While there are alternative financial institutions, QCR Holdings' diverse range of services and strong customer relationships mitigate the threat of substitutes.

Bargaining Power Of Customers

QCR Holdings, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong relationships with customers and its ability to provide customized services reduce the likelihood of customers switching to competitors.

Bargaining Power Of Suppliers

QCR Holdings, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position and long-term relationships with suppliers also mitigate the bargaining power of suppliers.

Threat Of New Entrants

The financial services industry has high barriers to entry, including regulatory requirements and capital requirements. Additionally, QCR Holdings, Inc.'s established brand and strong customer relationships make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The financial services industry is highly competitive, with many established players competing for market share. QCR Holdings, Inc. faces intense competition from larger banks and financial institutions, which can impact its market share and pricing power.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.77%
Debt Cost 5.09%
Equity Weight 55.23%
Equity Cost 8.81%
WACC 7.15%
Leverage 81.06%

11. Quality Control: QCR Holdings, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Enterprise Bancorp

A-Score: 6.5/10

Value: 6.3

Growth: 5.3

Quality: 6.7

Yield: 4.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
South Plains Financial

A-Score: 6.3/10

Value: 6.6

Growth: 5.9

Quality: 6.6

Yield: 4.0

Momentum: 7.0

Volatility: 7.7

1-Year Total Return ->

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Stock-Card
Investar Holding

A-Score: 6.1/10

Value: 6.3

Growth: 6.0

Quality: 5.9

Yield: 4.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
United Bancorp

A-Score: 6.0/10

Value: 4.4

Growth: 4.9

Quality: 4.5

Yield: 10.0

Momentum: 6.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
QCR Holdings

A-Score: 5.7/10

Value: 6.3

Growth: 8.3

Quality: 7.6

Yield: 0.0

Momentum: 4.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Customers Bancorp

A-Score: 5.0/10

Value: 6.5

Growth: 6.8

Quality: 3.8

Yield: 0.0

Momentum: 8.0

Volatility: 4.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

85.74$

Current Price

85.74$

Potential

-0.00%

Expected Cash-Flows