QCR HOLDINGS INC

Previous wording

This section reviews the financial condition and results of operations of the Company and its subsidiaries as of and for the three and six months ending June 30, 2026. Some tables may include additional periods to comply with disclosure requirements or to illustrate trends. When reading this discussion, also refer to the Consolidated Financial Statements and related notes in this report. Page locations and specific sections and notes that are referred to in this discussion are listed in the table of contents.

Current wording

This section reviews the financial condition and results of operations of the Company and its subsidiaries as of and for the three and nine months ending September 30, 2026. Some tables may include additional periods to comply with disclosure requirements or to illustrate trends. When reading this discussion, also refer to the Consolidated Financial Statements and related notes in this report. Page locations and specific sections and notes that are referred to in this discussion are listed in the table of contents.

Previous wording

The Company was formed in February 1993 for the purpose of organizing QCBT. Over the past 33 years, the Company has grown to include four banking subsidiaries and a number of nonbanking subsidiaries. As of June 30, 2026, the Company had $9.5 billion in consolidated assets, including $6.9 billion in net loans/leases, and $7.4 billion in deposits. The financial results of acquired entities for the periods since their acquisition are included in this report. Further information related to acquired entities has been presented in the annual reports previously filed with the SEC corresponding to the year of each acquisition.

Current wording

The Company was formed in February 1993 for the purpose of organizing QCBT. Over the past 33 years, the Company has grown to include four banking subsidiaries and a number of nonbanking subsidiaries. As of September 30, 2026, the Company had $9.8 billion in consolidated assets, including $7.1 billion in net loans/leases, and $7.2 billion in deposits. The financial results of acquired entities for the periods since their acquisition are included in this report. Further information related to acquired entities has been presented in the annual reports previously filed with the SEC corresponding to the year of each acquisition.

Previous wording

The Company reported net income of $36.3 million and diluted EPS of $2.19 for the quarter ended June 30, 2026. By comparison, for the quarter ended March 31, 2026, the Company reported net income of $33.4 million and diluted EPS of $1.99. For the quarter ended June 30, 2025, the Company reported net income of $29.0 million, and diluted EPS of $1.71. For the six months ended June 30, 2026, the Company reported net income of $69.6 million and diluted EPS of $4.18. By comparison, for the six months ended June 30, 2025, the Company reported net income of $54.8 million and diluted EPS of $3.22.

Current wording

The Company reported net income of $36.4 million and diluted EPS of $2.21 for the quarter ended September 30, 2026. By comparison, for the quarter ended June 30, 2026, the Company reported net income of $36.3 million and diluted EPS of $2.19. For the quarter ended September 30, 2025, the Company reported net income of $36.7 million, and diluted EPS of $2.16. For the nine months ended September 30, 2026, the Company reported net income of $106.1 million and diluted EPS of $6.39. By comparison, for the nine months ended September 30, 2025, the Company reported net income of $91.5 million and diluted EPS of $5.38.

Previous wording

The second quarter of 2026 was also highlighted by the following results and events (see section titled “GAAP to Non-GAAP Reconciliations” for additional information):

Current wording

The third quarter of 2026 was also highlighted by the following results and events (see section titled “GAAP to Non-GAAP Reconciliations” for additional information):

Previous wording

The Company reported adjusted net income (non-GAAP) of $36.3 million, with adjusted diluted EPS (non-GAAP) of $2.19 for the three months ended June 30, 2026. See section titled “GAAP to Non-GAAP Reconciliations” for additional information. The Company reported adjusted net income (non-GAAP) of $69.7 million, with adjusted diluted EPS (non-GAAP) of $4.18 for the six months ended June 30, 2026.

Current wording

The Company reported adjusted net income (non-GAAP) of $36.4 million, with adjusted diluted EPS (non-GAAP) of $2.21 for the three months ended September 30, 2026. See section titled “GAAP to Non-GAAP Reconciliations” for additional information. The Company reported adjusted net income (non-GAAP) of $106.1 million, with adjusted diluted EPS (non-GAAP) of $6.40 for the nine months ended September 30, 2026.

Previous wording

The Company has taken the following actions during the second quarter of 2026 to support its corporate strategy and further the strategic financial metrics shown above:

Current wording

The Company has taken the following actions during the third quarter of 2026 to support its corporate strategy and further the strategic financial metrics shown above:

Previous wording

The following table presents certain non-GAAP financial measures related to the “TCE/TA ratio,” “adjusted net income,” “adjusted EPS,” “adjusted ROAA,” “NIM (TEY),” “adjusted NIM (TEY),” “efficiency ratio,” and “adjusted efficiency ratio.” In compliance with applicable rules of the SEC, all non-GAAP measures are reconciled to the most directly comparable GAAP measure, as follows:

Current wording

The following table presents certain non-GAAP financial measures related to the “TCE/TA ratio,” “adjusted net income,” “adjusted EPS,” “adjusted ROAA,” “adjusted ROAE”, “NIM (TEY),” “adjusted NIM (TEY),” “efficiency ratio,” and “adjusted efficiency ratio.” In compliance with applicable rules of the SEC, all non-GAAP measures are reconciled to the most directly comparable GAAP measure, as follows:

Previous wording

The efficiency ratio and adjusted efficiency ratio are utilized by management to compare the Company to its peers. They are standard ratios used to calculate overhead as a percentage of revenue in the banking industry and is widely utilized by investors.

Current wording

The efficiency ratio and adjusted efficiency ratio are utilized by management to compare the Company to its peers. They are standard ratios used to calculate overhead as a percentage of revenue in the banking industry and are widely utilized by investors.

Previous wording

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have

Current wording

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.

Previous wording

Net interest income, on a GAAP basis, increased 9% for the quarter ended June 30, 2026, compared to the same quarter of the prior year. Net interest income, on a tax equivalent basis (non-GAAP) increased 8% for the quarter ended June 30, 2026, compared to the same quarter of the prior year. Net interest income, on a GAAP basis, increased 11% for the six months ended June 30, 2026, compared to the same period of the prior year. Net interest income, on a tax equivalent basis (non-GAAP) increased 9% for the six months ended June 30, 2026, compared to the same period of the prior year. Net interest income changed primarily due to the Company’s loan and investment growth and continued expansion of loan and investment yields.

Current wording

Net interest income, on a GAAP basis, increased 6% for the quarter ended September 30, 2026, compared to the same quarter of the prior year. Net interest income, on a tax equivalent basis (non-GAAP) increased 4% for the quarter ended September 30, 2026, compared to the same quarter of the prior year. Net interest income, on a GAAP basis, increased 9% for the nine months ended September 30, 2026, compared to the same period of the prior year. Net interest income, on a tax equivalent basis (non-GAAP) increased 8% for the nine months ended September 30, 2026, compared to the same period of the prior year. Net interest income changed primarily due to the Company’s loan and investment growth and continued expansion of loan and investment yields combined with lower cost of interest-bearing deposits.