QCR Holdings, Inc.
Annual Report 2025

Plain-text annual report

2025 ANNUAL REPORT 1 QCR ANNUAL REPORT 2025 QCR HOLDINGS, INC. 2 2025 ANNUAL REPORT 3 A Message from the Chair of the Board 2025 marked another year of exceptional performance for our Company. We delivered record earnings and continued growth across each of our core lines of business – traditional banking, wealth management, and low- income housing tax credit lending. These results underscore the strength of our unique and proven business model; one Company composed of four community banks, unified through shared services and a common purpose of making financial dreams a reality. Our ”One Company” approach empowers our teams to build meaningful relationships in the communities we serve, while benefiting from the efficiency and expertise of our Group Operations teams. This foundation of collaboration and shared purpose has, for more than three decades, fostered a team of 1,000 employees whose dedication consistently delivers exceptional shareholder returns through sustained, long‑term growth. We have established a strong track record of performance, highlighted by double-digit adjusted earnings per share growth and tangible book value expansion, placing us among top-tier performers. As we look ahead, we remain focused on sustaining this momentum and delivering meaningful value for our shareholders. Thank you for your continued support, and we look forward to another successful year in 2026. Marie Z. Ziegler Chair of the Board, QCR Holdings, Inc. QCR HOLDINGS, INC. 4 Todd A. Gipple President and Chief Executive Officer, QCR Holdings, Inc. ONE COMPANY–A PROVEN SUCCESS STORY A Message from our President and CEO Our “One Company” approach—built around separate autonomous community banks supported by a centralized Group Operations team—allows us to deliver local community banking responsiveness and agility combined with enterprise-level capabilities and strength. In 2025, we achieved a major milestone in our digital transformation project, positioning our organization as a true “bank of the future.” Through strong cross-company collaboration, our teams completed our first core conversion and established a gold standard for banking that will enhance the client experience and create more efficient workflows for our employees. We look forward to completing the roll out of this modernized platform across all four charters by early 2027. We also deepened our focus on our greatest asset—our employees. We know that happy employees create happy clients, and more of them, which is why we launched our “Happy, Healthy, Engaged Employees” (H2E2) initiative company wide. It’s more than a name; it’s a mission. With numerous initiatives to support this effort, employees feel inspired knowing we are genuinely invested in their wellbeing. This deep appreciation for our team is what sets our Company apart and creates a culture that allows us to deliver superior financial results for our shareholders year after year. Building on this momentum, we hold ourselves accountable to continue our exceptional performance for our clients, our communities, and our shareholders. On behalf of our 1,000 teammates, I thank you for the trust and confidence you continue to place in us. 2025 ANNUAL REPORT 5 Strong Fundamentals Built on Trust and Experience Delivering Results Our bankers delivered significant growth and strong margins by remaining focused on relationships and doing what’s right for the client. Continued robust growth in our Wealth Management business reflects the strength of our advisors and the trust they have earned to help clients navigate complex financial decisions. Our low-income housing tax credit lending business continued to perform at a high level, driven by deep expertise and strong client demand. Capital Markets Revenue $65 Million Record Adjusted Net Income (1) $130 Million Adjusted Return on Average Assets (1) 1.39% Core Deposit Growth 7% Adjusted Return on Average Equity (1) 12.19% Adjusted Diluted Earnings Per Share (1) $7.64 2025 Financial Highlights QCR HOLDINGS, INC. 6 Mission We make financial dreams a reality. Vision Exceptional people providing extraordinary performance for our clients shareholders, and communities. Values Passion - We care. Achievement - We expect to win. Accountability - We drive it. Collaboration - We work together. Innovation - We embrace change. Inclusion - We respect all. QCR Holdings is a relationship driven organization built on trust, collaboration, and accountability for high levels of achievement. Through our four independent community banks, low-income housing tax credit lending business, and wealth management business, we provide meaningful financial solutions rooted in local expertise and disciplined decision making. Our mission, vision, and values unify our three lines of businesses under a shared purpose. They guide how we serve our clients, support our employees, and build sustainable value for the communities and shareholders we serve. WHO WE ARE 2025 ANNUAL REPORT 7 Employee Volunteer Hours Employee Volunteers Financial Literacy Volunteer Hours Non-Profits Supported Through Volunteering, Donations, or Community Development Loans 1,126 $2.3 Million CRA-eligible Loans CRA-eligible Investments Sponsorships and Donations $697 Million $116 Million 24,512 687 1,031 RESPONSIBILITY MATTERS Our responsibility extends beyond banking. We are proud of the time, energy, and commitment our employees invest in the communities we serve. QCR HOLDINGS, INC. 8 $4 $8 $6 2021 2022 $6.27 2023 $6.80 2024 2025 $6.82 $7.03 $7.64 Adjusted Earnings Per Share (1) Summary of Financial Results (thousands) Adjusted Earnings Per Share (1) Compound Annual Growth Rate FINANCIAL HIGHLIGHTS 2021-2025 14 % Adjusted Non-GAAP (1) 2021 2022 2023 2024 2025 Net interest income $ 178,233 $ 231,120 $ 221,006 $ 231,788 $ 255,221 Provision for credit losses (3,486) 4,110 (16,539) (17,098) (18,081) Non-interest income 100,303 78,754 134,397 119,864 115,417 Non-interest expense (152,136) (180,775) (210,324) (205,257) (213,598) Net income before taxes $ 122,914 $ 133,209 $ 128,540 $ 129,297 $ 138,959 Income taxes (22,866) (18,348) (13,465) (10,047) (9,350) Net income $ 100,048 $ 114,861 $ 115,075 $ 119,250 $ 129,609 2025 ANNUAL REPORT 9 $0 $0 $0 $8 $8.0 $8.0 $6.0 $6.0 $2.0 $2.0 $4 $4 $4.0 Wealth Management Assets Under Management (billions) Total Deposits (billions) 2021 2022* 2023 Tangible Book Value (1) and Fair Market Value TANGIBLE BOOK VALUE PER COMMON SHARE BROKERAGE / IRA FAIR MARKET VALUE TRUST / INVESTMENT MANAGEMENT 2021 2022 2023 2024 2025 2024 Total Loans/Leases (billions) 2021 $5.4 2021 2022* 2022 $4.6 2023 $4.9 2023 $5.3 2024 $6.3 2025 $7.1 2024 $6.0 2025 2024 2025 $6.6 $7.1 $7.4 $6.8 $7.2 $6.5 $6.1 $4.7 $90 $60 $0 $30 * Benefited from the Guaranty Bank acquisition. * Benefited from the Guaranty Bank acquisition. $1.2 $1.2 $1.4 $1.7 $4.2 $4.1 $4.9 $5.4 $1.0 $3.6 QCR HOLDINGS, INC. 10 OUR LEADERSHIP BOARD OF DIRECTORS JOHN-PAUL E. BESONG Retired Executive, Rockwell Collins MARY KAY BATES Chair of the Board and Chief Executive Officer, Bank Midwest JAMES R. BATTEN President, H2D2, LLC BRENT R. COBB Chief Executive Officer, World Class Industries, Inc. MARK C. KILMER Chair of the Board, The Republic Companies JOHN F. GRIESEMER Chair of the Board and Chief Executive Officer, Erlen Group AMY L. REASNER President, Lynch Dallas, P.C. ELIZABETH S. JACOBS President, The Jacobs Group, LLC JAMES M. FIELD Vice Chair of the Board, QCR Holdings, Inc., Retired Executive, Deere and Company TODD A. GIPPLE President, Chief Executive Officer, QCR Holdings, Inc. MARIE Z. ZIEGLER Chair of the Board, QCR Holdings, Inc., Retired Executive, Deere and Company 2025 ANNUAL REPORT 11 Our Management Cabinet is made up of eight key leaders within our organization who oversee QCR Holdings, Inc. strategic development, critical decision making, and talent management. JAMES D. KLEIN President and Chief Executive Officer, Cedar Rapids Bank & Trust and Chief Deposit Officer, QCR Holdings, Inc. TODD A. GIPPLE President and Chief Executive Officer, QCR Holdings, Inc. NIKI A. LEE Chief Human Resources Officer, QCR Holdings, Inc. MONTE C. MCNEW Chief Executive Officer, Guaranty Bank and Chief Lending Officer, QCR Holdings, Inc. REBA K. WINTER Chief Operating Officer, QCR Holdings, Inc. MANAGEMENT CABINET LAURA ‘DIVOT’ EKIZIAN President and Chief Executive Officer, Quad City Bank & Trust KURT A. GIBSON Chief Executive Officer, Community State Bank NICK W. ANDERSON Chief Financial Officer, QCR Holdings, Inc. QCR HOLDINGS, INC. 12 CONDENSED BALANCE SHEET Cash and due from banks $76,494 $91,732 Federal funds sold and interest bearing deposits 149,658 170,592 Securities, net 1,312,310 1,200,435 Net loans/leases 7,076,828 6,694,563 Intangibles 8,080 11,061 Goodwill 138,596 138,596 Derivatives 192,426 186,781 Other assets 621,079 532,270 Total assets $9,575,470 $9,026,030 Total deposits $7,414,198 $7,061,187 Total borrowings 638,541 569,532 Derivatives 214,327 214,823 Other liabilities 196,093 183,101 Total stockholders' equity 1,112,311 997,387 Total liabilities and stockholders' equity $9,575,470 $9,026,030 AS OF 2025 2024 (dollars in thousands) 2025 ANNUAL REPORT 13 ANALYSIS OF LOAN PORTFOLIO Loan/lease mix: Commercial and industrial - revolving $384,656 $387,991 Commercial and industrial - other 1,094,064 1,295,961 Commercial and industrial - other - LIHTC 224,802 218,971 Total commercial and industrial 1,703,522 1,902,923 Commercial real estate, owner occupied 577,352 605,993 Commercial real estate, non-owner occupied 1,036,655 1,077,852 Construction and land development 566,891 395,557 Construction and land development - LIHTC 741,531 917,986 Multi-family 340,080 303,662 Multi-family - LIHTC 1,429,251 828,448 Direct financing leases 9,533 17,076 1-4 family real estate 603,683 588,179 Consumer 158,457 146,728 Total loans/leases $7,166,955 $6,784,404 Less allowance for credit losses 90,127 89,841 Net loans/leases $7,076,828 $6,694,563 AS OF 2025 2024 (dollars in thousands) ANALYSIS OF DEPOSITS Deposit mix: Noninterest-bearing demand deposits $945,513 $921,160 Interest-bearing demand deposits 5,196,438 4,828,216 Time deposits 1,035,317 953,496 Brokered deposits 236,930 358,315 Total deposits $7,414,198 $7,061,187 QCR HOLDINGS, INC. 14 INCOME STATEMENT Interest income $489,426 $481,857 Interest expense 234,205 250,069 Net interest income 255,221 231,788 Provision for credit losses 18,081 17,098 Net interest income after provision for credit losses 237,140 214,690 Total noninterest income 114,323 115,529 Total noninterest expense 215,561 207,642 Net income before taxes 135,902 122,577 Income tax expense 8,708 8,727 Net income $127,194 $113,850 Basic EPS $7.54 $6.77 Diluted EPS $7.49 $6.71 Weighted average common shares outstanding 16,876,457 16,829,004 Weighted average common and common equivalent shares outstanding 16,973,671 16,959,853 FOR THE YEAR ENDED 2025 2024 (dollars in thousands, except per share data) 2025 ANNUAL REPORT 15 COMMON SHARE DATA Common shares outstanding 16,690,603 16,882,045 Book value per common share $66.64 $59.08 Tangible book value per common share (1) $57.86 $50.21 Closing stock price $83.30 $80.64 Market capitalization $1,390,327 $1,361,368 Market price / book value 124.99% 136.49% Market price / tangible book value (1) 143.98% 160.59% Earnings per common share (basic) $7.54 $6.77 Price earnings ratio 11.05 x 11.91 x Basic adjusted earnings per common share (1) $7.68 $7.09 Diluted adjusted earnings per common share (1) $7.64 $7.03 TCE / TA (1) 10.24% 9.55% AS OF AND FOR THE YEAR ENDED 2025 2024 (dollars in thousands, except per share data) CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY Beginning balance $997,387 $886,596 Net income 127,194 113,850 Other comprehensive income (loss), net of tax 9,057 (3,682) Repurchase and cancellation of shares of common stock as a result of a share repurchase program (21,629) - Common stock cash dividends declared (4,059) (4,041) Other 4,361 4,664 Ending balance $1,112,311 $997,387 QCR HOLDINGS, INC. 16 REGULATORY CAPITAL RATIOS Total risk-based capital ratio 14.19% 14.10% Tier 1 risk-based capital ratio 11.02% 10.57% Tier 1 leverage capital ratio 11.07% 10.73% Common equity tier 1 ratio 10.52% 10.03% AS OF AND FOR THE YEAR ENDED 2025 2024 (dollars in thousands) KEY PERFORMANCE RATIOS AND OTHER METRICS Adjusted return on average assets (1) 1.39% 1.35% Adjusted return on average total equity (1) 12.19% 12.61% Net interest margin 3.00% 2.88% Net interest margin (TEY) (1) (2) 3.49% 3.33% Efficiency ratio (1) 58.33% 59.78% Total loans/leases held for investment/total assets 74.83% 75.14% Full-time equivalent employees 1,004 980 AVERAGE BALANCES Assets $9,323,171 $8,837,393 Loans/leases 7,004,737 6,764,754 Deposits 7,343,514 6,813,620 Total stockholders' equity 1,063,050 945,848 (1) Adjusted non-GAAP measurements of financial performance exclude non-core and/or nonrecurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these adjusted measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations in the Company’s Form 10-K. (2) TEY : Tax equivalent yield. 2025 ANNUAL REPORT 17 2026 Annual Meeting of Stockholders We invite you to attend the virtual annual meeting which will be held on Thursday, May 21, 2026 at 8:00 a.m. Central Daylight Time. You will be able to attend the meeting and vote during the meeting by visiting: virtualshareholdermeeting.com/QCRH2026. Prior to the meeting, you will be able to vote by visiting proxyvote.com. Stockholders interested in information may contact Shellee R. Showalter Senior Vice President, Senior Director of Equity Administration & Executive Compensation QCR Holdings, Inc. 3551 Seventh Street, Moline, IL 61265 309.743.7760 Annual Report on Form 10-K Copies of the QCR Holdings, Inc. annual report on Form 10-K and exhibits filed with the Securities and Exchange Commission are available to stockholders without charge by accessing our website at qcrh.com or contact: Nick W. Anderson Senior Vice President, Chief Financial Officer QCR Holdings, Inc. 3551 Seventh Street, Moline, IL 61265 309.743.7707 Internet Information Information on our subsidiaries’ history, locations, products and services can be accessed on the internet at: qcbt.com, crbt.com, communitybt.com, bankcsb.com, and gbankmo.com. Stock Transfer Agent Inquiries related to stockholder records, stock transfers, lost certificates, changes of ownership, changes of address, and dividend payments should be sent to our transfer agent at: Equiniti Trust Company, LLC 1110 Centre Point Curve, Suite 101 Mendota Heights, MN 55120 Toll Free: 800.937.5449 Local & International: 718.921.8124 Hours: 8 a.m. – 8 p.m. ET Monday-Friday Email: helpast@equiniti.com Website: equiniti.com Analysts or other investors interested in information may contact Douglas Neumann Vice President, Investor Relations Controller QCR Holdings, Inc. 3551 Seventh Street, Moline, IL 61265 309.743.7753 Independent Registered Public Accounting Firm RSM US LLP, Davenport, IA Corporate Counsel Deborah M. Neyens, General Counsel and Corporate Secretary, QCR Holdings, Inc. Barack Ferrazzano Kirschbaum & Nagelberg LLP, Chicago, IL The common stock of QCR Holdings, Inc. is traded on the Nasdaq Global Market under the symbol “QCRH”. STOCK LISTING INFORMATION QCR HOLDINGS, INC. 18 RECORD DATE PAYMENT DATE CASH AMOUNT 12/23/2025 01/07/2026 $0.06 09/18/2025 10/03/2025 $0.06 06/18/2025 07/03/2025 $0.06 03/19/2025 04/03/2025 $0.06 DIVIDEND INFORMATION 2021-2025 Stock Performance - Total Price Return 2021 2022 2023 2024 2025 QCRH - Price KBW Nasdaq Regional Banking - Price Russell 2000 - Price 240 220 200 180 160 140 120 100 80 QCR Holdings, Inc. 3551 Seventh Street, Moline, IL 61265 relationship driven

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