QCR (QCRH) investor relations material

Executive summary

• Net income for Q2 2026 was $36.3 million, up 25% year-over-year, with diluted EPS of $2.19, a 28% increase year-over-year and record GAAP EPS.

• Strong return on average assets at 1.51% and tangible book value per share grew $2.17, or 15% annualized, supported by robust loan production, capital markets revenue rebound, and higher net interest income.

• Wealth management assets under management rose 9% and revenue increased 7% sequentially.

• Asset quality improved to its strongest level since 2019, with criticized loans at the lowest level since Q4 2019.

• Returned $56 million to shareholders via share repurchases, compounding tangible book value per share by 15% year-over-year.

Financial highlights

• Net interest income for Q2 2026 was $67.9 million, up 9% year-over-year and 3% annualized from Q1; average earning assets increased $46 million.

• Noninterest income for Q2 2026 was $29.4 million, up 33% year-over-year, with $16.7 million from capital markets and $6 million from wealth management.

• Efficiency ratio improved to 54.6%, a 310 bps improvement sequentially; noninterest expense was $53.2 million, below guidance.

• Tangible book value per share rose $2.17 (15% annualized); tangible common equity to tangible assets ratio increased to 10.71%.

• Common equity Tier 1 ratio at 10.68%; total risk-based capital ratio at 14.13%.

Outlook and guidance

• Gross loan growth guidance reaffirmed at 10%-15% annualized for the remainder of 2026.

• Capital markets revenue guidance maintained at $60-$70 million for the next four quarters.

• Noninterest expense guidance for Q3 set at $54-$57 million, with annual growth targeted below 5%.

• Effective tax rate expected to trend between 8%-10% in Q3 2026.

• Expectation for relatively static NIM TEY in Q3 2026, assuming no Fed rate changes.