QCR Holdings, Inc. Announces Record Quarterly Net Income of $36.7 Million for the Third Quarter of 2025

Third Quarter 2025 Highlights

• Record third quarter net income of $36.7 million, or $2.16 per diluted share
• Record adjusted net income¹ of $36.9 million, or $2.17 per diluted share
• Net interest income growth of 18% annualized and NIM TEY¹ expansion of five basis points to 3.51%
• ROAA of 1.57% annualized
• Capital markets revenue of $23.8 million, up 141% on a linked-quarter basis
• Loan growth of 15% annualized
• Tangible book value per share¹ growth of $2.50, or 19% annualized
• Repurchased 115,735 shares, a total of 129,056 through October 20^th, 2025
  
  
  
  

MOLINE, Ill., Oct. 22, 2025 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ:QCRH) (the "Company") today announced record quarterly net income of $36.7 million and diluted earnings per share ("EPS") of $2.16 for the third quarter of 2025, compared to net income of $29.0 million and diluted EPS of $1.71 for the second quarter of 2025.

Adjusted net income¹ and adjusted diluted EPS¹ for the third quarter of 2025 were $36.9 million and $2.17, respectively, compared to $29.4 million and $1.73, respectively, for the second quarter of 2025 and $30.3 million, and $1.78 respectively for the third quarter of

2024.

		For the Quarter Ended
		September 30,			June 30,			September 30,
$in millions (except per share data)		2025			2025			2024
Net Income		$	36.7		$	29.0		$	27.8
Diluted EPS		$	2.16		$	1.71		$	1.64
Adjusted Net Income1		$	36.9		$	29.4		$	30.3
Adjusted Diluted EPS1		$	2.17		$	1.73		$	1.78

"We delivered outstanding third quarter results, achieving record net income and strong EPS growth of 26% compared to the second quarter," said Todd Gipple, President and Chief Executive Officer. "Our exceptional performance was driven by a strong rebound in capital markets revenue, as well as robust loan growth and continued net interest margin expansion that led to a significant increase in net interest income."

Strong Margin Expansion Fuels Significant Net Interest Income Growth

Net interest income for the third quarter of 2025 totaled $64.8 million, an increase of $2.7 million, or 18% annualized, from the second quarter of 2025, driven by strong earning asset growth, expanded loan and investment yields, and a stable cost of funds. Net interest margin ("NIM") was 3.00% and NIM on a tax-equivalent yield ("TEY") basis¹ was 3.51% for the third quarter, as compared to 2.97% and 3.46% for the prior quarter, respectively.

"Our NIM TEY¹ increased five basis points from the second quarter of 2025, exceeding the high end of our guidance range," said Nick Anderson, Chief Financial Officer. "Looking ahead, we anticipate continued margin expansion and are guiding to an increase in fourth quarter NIM TEY¹ ranging from 3 to 7 basis points, assuming no further Federal Reserve rate cuts," added Mr. Anderson.

Robust Noninterest Income from Capital Markets and Wealth Management Revenue

Noninterest income for the third quarter of 2025 was $36.7 million, up 66% from $22.1 million in the second quarter of 2025. The Company generated $23.8 million of capital markets revenue in the third quarter of 2025 compared to $9.9 million in the prior quarter. Wealth Management revenue totaled $5.0 million for the quarter, representing an 8% increase from the second quarter of 2025 and a 15% annualized increase year-over-year.

"During the third quarter of 2025, activity rebounded sharply in our low-income housing tax credit ("LIHTC") lending business, underscoring the continued demand for affordable housing and the strength of our seasoned team. Developers are actively navigating the broader macroeconomic challenges from earlier in the year, demonstrating resilience and a commitment to advancing their projects. We continue to view LIHTC lending as a highly durable, highly profitable, and differentiated line of business for QCRH, anchored by our deep network of developer relationships and the historically high-quality assets that our platform consistently delivers," said Mr. Gipple.

"Our LIHTC lending team has worked incredibly hard to extend our market position the past three quarters, gaining additional projects from our long-term developer relationships and creating new relationships with 10 experienced LIHTC developer clients. These new clients are some of the best LIHTC developers in the country and this success will further extend our LIHTC lending platform. Given the strength of our pipeline, we are increasing our capital markets revenue guidance to be in a range of between $55 and $65 million over the next four quarters," added Mr. Gipple.

Noninterest Expense Discipline Helps Drive Operating Leverage

Noninterest expense for the third quarter of 2025 totaled $56.6 million compared to $49.6 million for the second quarter of 2025 and $53.6 million for the third quarter of 2024. The $7.0 million linked-quarter increase was primarily due to robust capital markets revenue and loan growth in the quarter, which drove variable compensation higher. Professional and data processing expenses and occupancy and equipment expenses related to the Company's digital transformation also contributed to the increase in noninterest expense.

The Company's highly incentivized variable compensation structure is designed to enhance operating leverage and provide expense flexibility across changing revenue cycles. "For the third quarter, the Company's efficiency ratio¹ of 55.78% was our lowest in four years. Compared to the first nine months of 2024, adjusted noninterest expenses¹ remain well controlled, up less than 1% on an annualized basis, while adjusted net income¹ has grown by 9% annualized," said Mr. Anderson.

For the fourth quarter of 2025, the Company expects noninterest expense to be in the range of $52 to $55 million, which assumes capital markets revenue and loan growth are within their guidance ranges and includes costs for the digital transformation, including the successful completion of the first core operating system conversion in early October.

Loan Growth Accelerates in both LIHTC and Traditional Bank Lending

In the third quarter of 2025, the Company's total loans and leases held for investment grew by $253.7 million, to $7.2 billion. "Loan growth was 17% annualized when adding back the impact from the planned runoff of m2 Equipment Finance ("m2") loans and leases. Third quarter loan growth was driven by acceleration in both our LIHTC lending and traditional lending businesses. With a strong pipeline in place, we anticipate solid loan growth through year-end and are guiding to gross loan growth in a range of 10% to 15% in the final quarter of the year," said Mr. Gipple.

Core Deposit Strength Continues

Total core deposits increased by $99.0 million, or 6% annualized from the second quarter, while average deposit balances increased $164.8 million. Year-to-date, core deposits have increased by $410.2 million, or 8% annualized. The deposit mix remained stable while total brokered deposits declined by $37.2 million. The Company's total deposits have averaged $7.3 billion year-to-date, an increase of $536.0 million, or 8%.

"We continue to generate strong deposit growth across our markets. These results reflect the success of our relationship-driven strategy of growing core deposits, providing a solid funding base that supports future growth," added Mr. Gipple.

Asset Quality Further Strengthens and Remains Excellent

The nonperforming assets ("NPAs") to total assets ratio was 0.45% as of September 30, 2025, down one basis point from the prior quarter. NPAs totaled $42.7 million at the end of the third quarter of 2025, consistent with the prior quarter.

Total criticized loans decreased by $5.6 million on a linked-quarter basis. The ratio of criticized loans to total loans and leases as of September 30, 2025 decreased to 2.01% as compared to 2.16% as of June 30, 2025, and remains well below the Company's long-term historical average.

The Company recorded a total provision for credit losses of $4.3 million during the quarter, which was up slightly from $4.0 million in the prior quarter. Net charge-offs were $4.2 million during the third quarter of 2025, a decrease of $2.1 million from the prior quarter driven by significantly lower m2 portfolio charge-offs. Credit loss expenses for the m2 portfolio are down 45%, or $4 million, and nonperforming assets are down 29% year-over-year, reflecting both the runoff of the higher-risk assets and the improved seasoning of the remaining portfolio. The allowance for credit losses to total loans held for investment was 1.24% as of September 30, 2025.

Continued Strong Tangible Book Value and Regulatory Capital

The Company's tangible book value per share¹ ("TBV") increased by $2.50, or 19% annualized, during the third quarter of 2025 due to the combination of strong earnings and improved accumulated other comprehensive losses partially offset by share repurchases.

As of September 30, 2025, the Company's tangible common equity to tangible assets ratio ("TCE")¹ increased five basis points to 9.97%. The improvement in TCE¹ was driven by strong earnings during the quarter. The total risk-based capital ratio decreased to 14.03% and the common equity tier 1 ratio decreased to 10.34% due to solid earnings growth during the quarter, offset by strong loan growth and share repurchases. By comparison, these ratios were 9.92%, 14.26%, and 10.43%, respectively, as of June 30, 2025. The Company remains committed to maintaining strong regulatory capital.

Opportunistic Share Repurchases and New Share Repurchase Plan Authorization

From the beginning of the third quarter through October 20^th, the Company returned $10.0 million of capital to shareholders with 129,056 shares repurchased at an average price of $77.49 per share. Additionally, the Company's Board of Directors authorized a new share repurchase program on October 20, 2025, permitting the repurchase of up to 1,700,000 shares of its outstanding common stock, or approximately 10% of the outstanding shares as of September 30, 2025. This program replaces the Company's prior repurchase program announced on May 19, 2022, which has been terminated. 

"The opportunistic repurchases were completed at attractive valuation levels of TBV¹. The new share repurchase program authorization equips us with a flexible capital allocation tool, enabling us to continue repurchasing shares when it aligns with our strategic and financial objectives, underscoring our confidence in the long-term earnings power of the Company and our commitment to enhancing shareholder value," said Mr. Gipple.

Conference Call Details

The Company will host an earnings call/webcast tomorrow, October 23, 2025, at 10:00 a.m. Central Time. Dial-in information for the call is toll-free: 888-346-9286 (international 412-317-5253). Participants should request to join the QCR Holdings, Inc. call. The event will be available for replay through October 30, 2025. The replay access information is 877-344-7529 (international 412-317-0088); access code 5245751. A webcast of the teleconference can be accessed on the Company's News and Events page at www.qcrh.com. An archived version of the webcast will be available at the same location shortly after the live event has ended.

About Us

QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, and Guaranty Bank, based in Springfield, Missouri, was acquired by the Company in 2018. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. The Company has 36 locations in Iowa, Missouri, and Illinois. As of September 30, 2025, the Company had $9.6 billion in assets, $7.2 billion in loans and $7.4 billion in deposits. For additional information, please visit the Company's website at www.qcrh.com.

Endnotes

¹Adjusted 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.

Special Note Concerning Forward-Looking Statements. This document contains, and future oral and written statements of the Company and its management may contain, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company's management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "bode", "predict," "suggest," "project", "appear," "plan," "intend," "estimate," "annualize," "may," "will," "would," "could," "should," "likely," "might," "potential," "continue," "annualized," "target," "outlook," as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward-looking statements. These factors include, but are not limited to: (i) the strength of the local, state, national and international economies and financial markets, including effects of inflationary pressures, the threat or implementation of tariffs, trade wars and changes to immigration policy; (ii) changes in, and the interpretation and prioritization of, local, state and federal laws, regulations and governmental policies (including those concerning the Company's general business); (iii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or threats thereof (including the Russian invasion of Ukraine and ongoing conflicts in the Middle East), or other adverse events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iv) new or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB, the Securities and Exchange Commission (the "SEC") or the PCAOB; (v) the imposition of tariffs or other governmental policies impacting the value of products produced by the Company's commercial borrowers; (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions, fintech companies, and digital asset service providers and the inability to attract new customers; (vii) rapid technological changes implemented by us and our third-party vendors, including the development and implementation of tools incorporating artificial intelligence; (viii) unexpected results of acquisitions, including failure to realize the anticipated benefits of the acquisitions and the possibility that transaction and integration costs may be greater than anticipated; (ix) the loss of key executives and employees, talent shortages and employee turnover; (x) changes in consumer spending; (xi) unexpected outcomes and costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company; (xii) the economic impact on the Company and its customers of climate change, natural disasters and exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates; (xiv) credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio and large loans to certain borrowers (including CRE loans); (xv) the overall health of the local and national real estate market; (xvi) the ability to maintain an adequate level of allowance for credit losses on loans; (xvii) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure; (xviii) the ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company's cost of funds; (xix) the level of non-performing assets on our balance sheet; (xx) interruptions involving our information technology and communications systems or third-party servicers; (xxi) the occurrence of fraudulent activity, breaches or failures of our third-party vendors' information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud; (xxii) changes in the interest rates and repayment rates of the Company's assets; (xxiii) the effectiveness of the Company's risk management framework, (xxiv) the effects of the current U.S. government shutdown, including the impact of prolonged closures or staffing reductions at government agencies effecting our business (for instance, the U.S. Department of Housing and Urban Development involvement with our LIHTC lending business), and (xxv) the ability of the Company to manage the risks associated with the foregoing. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the SEC.

Contact:

Nick W. Anderson

Chief Financial Officer

(309) 743-7707

[email protected]

QCR Holdings, Inc. Consolidated Financial Highlights (Unaudited)
		As of
		September 30,				June 30,				March 31,				December 31,				September 30,
		2025				2025				2025				2024				2024
			(dollars in thousands)
CONDENSED BALANCE SHEET
Cash and due from banks		$	77,581			$	104,769			$	98,994			$	91,732			$	103,840
Federal funds sold and interest-bearing deposits			160,033				145,704				225,716				170,592				159,159
Securities, net of allowance for credit losses			1,308,689				1,263,452				1,220,717				1,200,435				1,146,046
Loans receivable held for sale (1)			1,457				1,162				2,025				2,143				167,047
Loans/leases receivable held for investment			7,177,464				6,923,762				6,821,142				6,782,261				6,661,755
Allowance for credit losses			(88,770	)			(88,732	)			(90,354	)			(89,841	)			(86,321	)
Intangibles			9,077				9,738				10,400				11,061				11,751
Goodwill			138,595				138,595				138,595				138,595				138,596
Derivatives			207,775				184,982				180,997				186,781				261,913
Other assets			576,401				558,899				544,547				532,271				524,779
Total assets		$	9,568,302			$	9,242,331			$	9,152,779			$	9,026,030			$	9,088,565
Total deposits		$	7,380,068			$	7,318,353			$	7,337,390			$	7,061,187			$	6,984,633
Total borrowings			706,827				509,359				429,921				569,532				660,344
Derivatives			230,742				209,505				206,925				214,823				285,769
Other liabilities			163,750				154,560				155,796				183,101				181,199
Total stockholders' equity			1,086,915				1,050,554				1,022,747				997,387				976,620
Total liabilities and stockholders' equity		$	9,568,302			$	9,242,331			$	9,152,779			$	9,026,030			$	9,088,565
ANALYSIS OF LOAN PORTFOLIO
Loan/lease mix: (2)
Commercial and industrial - revolving		$	386,674			$	380,029			$	388,479			$	387,991			$	387,409
Commercial and industrial - other			1,107,896				1,180,859				1,231,198				1,295,961				1,321,053
Commercial and industrial - other - LIHTC			222,772				194,830				212,921				218,971				89,028
Total commercial and industrial			1,717,342				1,755,718				1,832,598				1,902,923				1,797,490
Commercial real estate, owner occupied			586,578				593,675				599,488				605,993				622,072
Commercial real estate, non-owner occupied			1,053,732				1,036,049				1,040,281				1,077,852				1,103,694
Construction and land development			515,787				454,022				403,001				395,557				342,335
Construction and land development - LIHTC			1,028,978				1,075,000				1,016,207				917,986				913,841
Multi-family			316,353				301,432				289,782				303,662				324,090
Multi-family - LIHTC			1,187,243				950,331				888,517				828,448				973,682
Direct financing leases			11,090				12,880				14,773				17,076				19,241
1-4 family real estate			599,838				592,253				592,127				588,179				587,512
Consumer			161,980				153,564				146,393				146,728				144,845
Total loans/leases		$	7,178,921			$	6,924,924			$	6,823,167			$	6,784,404			$	6,828,802
Less allowance for credit losses			88,770				88,732				90,354				89,841				86,321
Net loans/leases		$	7,090,151			$	6,836,192			$	6,732,813			$	6,694,563			$	6,742,481
ANALYSIS OF SECURITIES PORTFOLIO
Securities mix:
U.S. government sponsored agency securities		$	14,208			$	14,267			$	17,487			$	20,591			$	18,621
Municipal securities			1,085,669				1,033,642				1,003,985				971,567				965,810
Residential mortgage-backed and related securities			57,108				58,864				43,194				50,042				53,488
Asset backed securities			4,918				6,684				7,764				9,224				10,455
Other securities			63,824				67,358				66,105				65,745				39,190
Trading securities (3)			83,225				82,900				82,445				83,529				58,685
Total securities		$	1,308,952			$	1,263,715			$	1,220,980			$	1,200,698			$	1,146,249
Less allowance for credit losses			263				263				263				263				203
Net securities		$	1,308,689			$	1,263,452			$	1,220,717			$	1,200,435			$	1,146,046
ANALYSIS OF DEPOSITS
Deposit mix:
Noninterest-bearing demand deposits		$	931,774			$	952,032			$	963,851			$	921,160			$	969,348
Interest-bearing demand deposits			5,176,364				5,087,783				5,119,601				4,828,216				4,715,087
Time deposits			1,004,980				974,341				951,606				953,496				942,847
Brokered deposits			266,950				304,197				302,332				358,315				357,351
Total deposits		$	7,380,068			$	7,318,353			$	7,337,390			$	7,061,187			$	6,984,633
ANALYSIS OF BORROWINGS
Borrowings mix:
Term FHLB advances		$	145,383			$	145,383			$	145,383			$	145,383			$	145,383
Overnight FHLB advances			145,000				80,000				—				140,000				230,000
Other borrowings (4)			130,609				—				—				—				—
Other short-term borrowings			2,850				1,350				2,050				1,800				2,750
Subordinated notes			234,027				233,701				233,595				233,489				233,383
Junior subordinated debentures			48,958				48,925				48,893				48,860				48,828
Total borrowings		$	706,827			$	509,359			$	429,921			$	569,532			$	660,344

______________________________

(1)		Loans with a fair value of $0 million, $0 million, $0 million, $0 million and $165.9 million have been identified for securitization and are included in LHFS at September 30, 2025, June 30, 2025, March 31, 2025, December 31, 2024 and September 30, 2024, respectively.
(2)		Loan categories with significant LIHTC loan balances have been broken out separately. Total LIHTC balances within the loan/lease portfolio were $2.5 billion at September 30, 2025.
(3)		Trading securities consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company.
(4)		During the third quarter of 2025, the Company entered into a secured borrowing transaction where $200.3 million of HTM Municipal securities were pledged in exchange for $134.2 million of borrowings, net of issuance costs of $3.6 million.

QCR Holdings, Inc. Consolidated Financial Highlights (Unaudited)
		For the Quarter Ended
		September 30,			June 30,			March 31,				December 31,				September 30,
		2025			2025			2025				2024				2024
			(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income		$	125,015		$	120,247		$	116,673			$	121,642			$	125,420
Interest expense			60,216			58,165			56,687				60,438				65,698
Net interest income			64,799			62,082			59,986				61,204				59,722
Provision for credit losses			4,305			4,043			4,234				5,149				3,484
Net interest income after provision for credit losses		$	60,494		$	58,039		$	55,752			$	56,055			$	56,238
Trust fees (1)		$	3,544		$	3,395		$	3,686			$	3,456			$	3,270
Investment advisory and management fees (1)			1,488			1,254			1,254				1,320				1,229
Deposit service fees			2,231			2,187			2,183				2,228				2,294
Gains on sales of residential real estate loans, net			529			556			297				734				385
Gains on sales of government guaranteed portions of loans, net			6			40			61				49				—
Capital markets revenue			23,832			9,869			6,516				20,552				16,290
Earnings on bank-owned life insurance			952			998			524				797				814
Debit card fees			1,648			1,648			1,488				1,555				1,575
Correspondent banking fees			664			699			614				560				507
Loan related fee income			846			1,096			898				950				949
Fair value gain (loss) on derivatives and trading securities			324			230			(1,007	)			(1,781	)			(886	)
Other			587			143			378				205				730
Total noninterest income		$	36,651		$	22,115		$	16,892			$	30,625			$	27,157
Salaries and employee benefits		$	34,338		$	28,474		$	27,364			$	33,610			$	31,637
Occupancy and equipment expense			7,363			6,837			6,455				6,354				6,168
Professional and data processing fees			6,741			6,089			5,144				5,480				4,457
Restructuring expense			—			—			—				—				1,954
FDIC insurance, other insurance and regulatory fees			2,035			1,960			1,970				1,934				1,711
Loan/lease expense			345			407			381				513				587
Net cost of (income from) and gains/losses on operations of other real estate			3			50			(9	)			23				(42	)
Advertising and marketing			1,830			1,746			1,613				1,886				2,124
Communication and data connectivity			40			274			290				345				333
Supplies			259			252			207				252				278
Bank service charges			678			720			596				635				603
Correspondent banking expense			338			314			329				328				325
Intangibles amortization			662			661			661				691				690
Goodwill impairment			—			—			—				—				431
Payment card processing			569			547			594				516				785
Trust expense			412			413			357				381				395
Other			974			839			587				551				1,129
Total noninterest expense		$	56,587		$	49,583		$	46,539			$	53,499			$	53,565
Net income before income taxes		$	40,558		$	30,571		$	26,105			$	33,181			$	29,830
Federal and state income tax expense			3,844			1,552			308				2,956				2,045
Net income		$	36,714		$	29,019		$	25,797			$	30,225			$	27,785
Basic EPS		$	2.17		$	1.71		$	1.53			$	1.80			$	1.65
Diluted EPS		$	2.16		$	1.71		$	1.52			$	1.77			$	1.64
Weighted average common shares outstanding			16,919,785			16,928,542			16,900,785				16,871,652				16,846,200
Weighted average common and common equivalent shares outstanding			17,015,730			17,006,282			17,013,992				17,024,481				16,982,400

______________________________

(1)		Trust fees and investment advisory and management fees when combined are referred to as wealth management revenue.

QCR Holdings, Inc. Consolidated Financial Highlights (Unaudited)
		For the Nine Months Ended
		September 30,				September 30,
		2025				2024
			(dollars in thousands, except per share data)
INCOME STATEMENT
Interest income		$	361,935			$	360,215
Interest expense			175,068				189,631
Net interest income			186,867				170,584
Provision for credit losses			12,582				11,949
Net interest income after provision for credit losses		$	174,285			$	158,635
Trust fees		$	10,625			$	9,572
Investment advisory and management fees			3,996				3,544
Deposit service fees			6,601				6,302
Gains on sales of residential real estate loans, net			1,382				1,307
Gains on sales of government guaranteed portions of loans, net			107				36
Capital markets revenue			40,217				50,505
Earnings on bank-owned life insurance			2,474				4,646
Debit card fees			4,784				4,612
Correspondent banking fees			1,977				1,529
Loan related fee income			2,840				2,747
Fair value loss on derivatives and trading securities			(453	)			(998	)
Other			1,108				1,102
Total noninterest income		$	75,658			$	84,904
Salaries and employee benefits		$	90,176			$	94,576
Occupancy and equipment expense			20,655				19,059
Professional and data processing fees			17,974				13,893
Restructuring expense			—				1,954
FDIC insurance, other insurance and regulatory fees			5,965				5,510
Loan/lease expense			1,133				1,116
Net cost of (income from) and gains/losses on operations of other real estate			44				(44	)
Advertising and marketing			5,189				5,172
Communication and data connectivity			604				1,052
Supplies			718				812
Bank service charges			1,994				1,793
Correspondent banking expense			981				993
Intangibles amortization			1,984				2,070
Goodwill impairment			—				431
Payment card processing			1,710				2,137
Trust expense			1,182				1,199
Other			2,400				2,420
Total noninterest expense		$	152,709			$	154,143
Net income before income taxes		$	97,234			$	89,396
Federal and state income tax expense			5,704				5,771
Net income		$	91,530			$	83,625
Basic EPS		$	5.41			$	4.97
Diluted EPS		$	5.38			$	4.94
Weighted average common shares outstanding			16,916,371				16,814,787
Weighted average common and common equivalent shares outstanding			17,011,877				16,938,309

QCR Holdings, Inc. Consolidated Financial Highlights (Unaudited)
		As of and for the Quarter Ended																				For the Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
		2025				2025				2025				2024				2024					2025				2024
			(dollars in thousands, except per share data)
COMMON SHARE DATA
Common shares outstanding			16,838,866				16,934,698				16,920,363				16,882,045				16,861,108
Book value per common share (1)		$	64.55			$	62.04			$	60.44			$	59.08			$	57.92
Tangible book value per common share (Non-GAAP) (2)		$	55.78			$	53.28			$	51.64			$	50.21			$	49.00
Closing stock price		$	75.64			$	67.90			$	71.32			$	80.64			$	74.03
Market capitalization		$	1,273,692			$	1,149,866			$	1,206,760			$	1,361,368			$	1,248,228
Market price / book value			117.18	%			109.45	%			117.99	%			136.49	%			127.81	%
Market price / tangible book value			135.61	%			127.45	%			138.11	%			160.59	%			151.07	%
Earnings per common share (basic) LTM (3)		$	7.21			$	6.69			$	6.71			$	6.77			$	6.93
Price earnings ratio LTM (3)			10.49x				10.15 x				10.63 x				11.91 x				10.68 x
TCE / TA (Non-GAAP) (4)			9.97	%			9.92	%			9.70	%			9.55	%			9.24	%
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Beginning balance		$	1,050,554			$	1,022,747			$	997,387			$	976,620			$	936,319
Net income			36,714				29,019				25,797				30,225				27,785
Other comprehensive income (loss), net of tax			8,342				(1,671	)			404				(9,628	)			12,057
Common stock cash dividends declared			(1,017	)			(1,016	)			(1,015	)			(1,013	)			(1,012	)
Repurchase and cancellation of shares of common stock as a result of a share repurchase program			(8,993	)			—				—				—				—
Other (5)			1,315				1,475				174				1,183				1,471
Ending balance		$	1,086,915			$	1,050,554			$	1,022,747			$	997,387			$	976,620
REGULATORY CAPITAL RATIOS (6):
Total risk-based capital ratio			14.03	%			14.26	%			14.18	%			14.10	%			13.87	%
Tier 1 risk-based capital ratio			10.85	%			10.96	%			10.81	%			10.57	%			10.33	%
Tier 1 leverage capital ratio			11.29	%			11.22	%			11.06	%			10.73	%			10.50	%
Common equity tier 1 ratio			10.34	%			10.43	%			10.27	%			10.03	%			9.79	%
KEY PERFORMANCE RATIOS AND OTHER METRICS
Return on average assets (annualized)			1.57	%			1.27	%			1.14	%			1.34	%			1.24	%			1.33	%			1.27	%
Return on average total equity (annualized)			13.65	%			11.15	%			10.14	%			12.15	%			11.55	%			11.68	%			12.00	%
Net interest margin			3.00	%			2.97	%			2.95	%			2.95	%			2.90	%			2.97	%			2.85	%
Net interest margin (TEY) (Non-GAAP)(7)			3.51	%			3.46	%			3.42	%			3.43	%			3.37	%			3.46	%			3.30	%
Efficiency ratio (Non-GAAP) (8)			55.78	%			58.89	%			60.54	%			58.26	%			61.65	%			58.17	%			60.33	%
Gross loans/leases held for investment / total assets			75.01	%			74.91	%			74.53	%			75.14	%			73.30	%			75.01	%			73.30	%
Gross loans/leases held for investment / total deposits			97.25	%			94.61	%			92.96	%			96.05	%			95.38	%			97.25	%			95.38	%
Effective tax rate			9.48	%			5.08	%			1.18	%			8.91	%			6.86	%			5.87	%			6.46	%
Full-time equivalent employees (9)			994				1,001				972				980				976				994				976
AVERAGE BALANCES
Assets		$	9,354,411			$	9,155,473			$	9,015,439			$	9,050,280			$	8,968,653			$	9,176,349			$	8,765,913
Loans/leases			7,048,314				6,881,731				6,790,312				6,839,153				6,840,527				6,907,731				6,739,773
Deposits			7,383,373				7,218,540				7,146,286				7,109,567				6,858,196				7,250,268				6,714,251
Total stockholders' equity			1,075,715				1,041,428				1,017,487				995,012				962,302				1,045,090				929,341

______________________________

(1)		Includes accumulated other comprehensive income (loss).
(2)		Includes accumulated other comprehensive income (loss) and excludes intangible assets. See GAAP to Non-GAAP reconciliations.
(3)		LTM: Last twelve months.
(4)		TCE / TCA: tangible common equity / total tangible assets. See GAAP to non-GAAP reconciliations.
(5)		Includes mostly common stock issued for options exercised and the employee stock purchase plan, as well as stock-based compensation.
(6)		Ratios for the current quarter are subject to change upon final calculation for regulatory filings due after earnings release.
(7)		TEY: Tax equivalent yield. See GAAP to Non-GAAP reconciliations.
(8)		See GAAP to Non-GAAP reconciliations.
(9)		The increase in full-time equivalent employees in the second quarter of 2025 includes 21 summer interns.

QCR Holdings, Inc. Consolidated Financial Highlights (Unaudited)
ANALYSIS OF NET INTEREST INCOME AND MARGIN
		For the Quarter Ended
		September 30, 2025									June 30, 2025									September 30, 2024
		Average Balance			Interest Earned or Paid			Average Yield or Cost			Average Balance			Interest Earned or Paid			Average Yield or Cost			Average Balance			Interest Earned or Paid			Average Yield or Cost
			(dollars in thousands)
Fed funds sold		$	13,808		$	154		4.36	%		$	14,285		$	159		4.40	%		$	12,596		$	173		5.37	%
Interest-bearing deposits at financial institutions			128,126			1,341		4.15	%			151,898			1,634		4.31	%			145,597			1,915		5.23	%
Investment securities - taxable			400,765			4,878		4.86	%			401,657			4,805		4.79	%			381,285			4,439		4.64	%
Investment securities - nontaxable (1)			952,542			13,841		5.81	%			893,753			12,872		5.76	%			760,645			10,744		5.65	%
Restricted investment securities			31,959			570		6.98	%			34,037			622		7.23	%			42,546			840		7.73	%
Loans (1)			7,048,314			115,094		6.48	%			6,881,731			110,245		6.43	%			6,840,527			116,854		6.80	%
Total earning assets (1)		$	8,575,514		$	135,878		6.29	%		$	8,377,361		$	130,337		6.24	%		$	8,183,196		$	134,965		6.56	%
Interest-bearing deposits		$	5,197,006		$	40,221		3.07	%		$	5,080,367		$	38,604		3.05	%		$	4,739,757		$	42,180		3.54	%
Time deposits			1,237,232			12,595		4.04	%			1,193,035			12,409		4.17	%			1,164,560			13,206		4.51	%
Short-term borrowings			2,022			21		4.15	%			1,420			15		4.23	%			2,485			32		5.07	%
Federal Home Loan Bank advances			204,786			2,348		4.49	%			250,603			2,853		4.50	%			445,632			5,972		5.24	%
Other borrowings			48,295			479		3.97	%			—			—		0.00	%			—			—		0.00	%
Subordinated notes			236,783			3,861		6.52	%			233,631			3,599		6.16	%			233,313			3,616		6.20	%
Junior subordinated debentures			48,936			690		5.52	%			48,904			685		5.54	%			48,806			693		5.56	%
Total interest-bearing liabilities		$	6,975,060		$	60,215		3.42	%		$	6,807,960		$	58,165		3.42	%		$	6,634,553		$	65,699		3.93	%
Net interest income (1)					$	75,663								$	72,172								$	69,266
Net interest margin (2)								3.00	%								2.97	%								2.90	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)								3.51	%								3.46	%								3.37	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)								3.50	%								3.45	%								3.34	%
Cost of funds (4)								3.01	%								3.01	%								3.44	%

		For the Nine Months Ended
		September 30, 2025									September 30, 2024
		Average Balance			Interest Earned or Paid			Average Yield or Cost			Average Balance			Interest Earned or Paid			Average Yield or Cost
			(dollars in thousands)
Fed funds sold		$	12,385		$	412		4.38	%		$	15,196		$	625		5.40	%
Interest-bearing deposits at financial institutions			149,287			4,778		4.28	%			106,195			4,254		5.35	%
Investment securities - taxable			401,067			14,272		4.75	%			377,538			12,986		4.57	%
Investment securities - nontaxable (1)			896,990			38,434		5.72	%			717,284			29,557		5.50	%
Restricted investment securities			32,191			1,726		7.07	%			41,348			2,383		7.57	%
Loans (1)			6,907,731			332,780		6.44	%			6,739,773			337,244		6.68	%
Total earning assets (1)		$	8,399,651		$	392,402		6.24	%		$	7,997,334		$	387,049		6.46	%
Interest-bearing deposits		$	5,094,180		$	116,523		3.06	%		$	4,639,937		$	122,207		3.52	%
Time deposits			1,211,739			37,693		4.16	%			1,121,508			37,679		4.49	%
Short-term borrowings			1,761			55		4.09	%			1,846			76		5.47	%
Federal Home Loan Bank advances			211,189			7,197		4.49	%			421,782			16,948		5.28	%
Other borrowings			16,275			479		3.93	%			—			—		0.00	%
Subordinated notes			234,659			11,062		6.29	%			233,207			10,678		6.10	%
Junior subordinated debentures			48,904			2,059		5.55	%			48,774			2,074		5.59	%
Total interest-bearing liabilities		$	6,818,707		$	175,068		3.43	%		$	6,467,054		$	189,662		3.91	%
Net interest income (1)					$	217,334								$	197,387
Net interest margin (2)								2.97	%								2.85	%
Net interest margin (TEY) (Non-GAAP) (1) (2) (3)								3.46	%								3.30	%
Adjusted net interest margin (TEY) (Non-GAAP) (1) (2) (3)								3.45	%								3.28	%
Cost of funds (4)								3.01	%								3.41	%

______________________________

(1)		Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(2)		See "Select Financial Data – Subsidiaries" for a breakdown of amortization/accretion included in net interest margin for each period presented.
(3)		TEY: Tax equivalent yield. See GAAP to Non-GAAP reconciliations.
(4)		Cost of funds includes the effect of noninterest-bearing deposits.

QCR Holdings, Inc. Consolidated Financial Highlights (Unaudited)
		As of
		September 30,				June 30,				March 31,				December 31,				September 30,
		2025				2025				2025				2024				2024
			(dollars in thousands, except per share data)
ROLLFORWARD OF ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES
Beginning balance		$	88,732			$	90,354			$	89,841			$	86,321			$	87,706
Change in ACL for transfer of loans to LHFS			—				—				—				93				(1,812	)
Provision for credit losses			4,225				4,667				4,743				6,832				3,828
Loans/leases charged off			(4,746	)			(6,490	)			(4,944	)			(4,787	)			(3,871	)
Recoveries on loans/leases previously charged off			559				201				714				1,382				470
Ending balance		$	88,770			$	88,732			$	90,354			$	89,841			$	86,321
NONPERFORMING ASSETS
Nonaccrual loans/leases		$	42,167			$	42,482			$	47,259			$	40,080			$	33,480
Accruing loans/leases past due 90 days or more			43				7				356				4,270				1,298
Total nonperforming loans/leases			42,210				42,489				47,615				44,350				34,778
Other real estate owned			—				62				402				661				369
Other repossessed assets			510				113				122				543				542
Total nonperforming assets		$	42,720			$	42,664			$	48,139			$	45,554			$	35,689
ASSET QUALITY RATIOS
Nonperforming assets / total assets			0.45	%			0.46	%			0.53	%			0.50	%			0.39	%
ACL for loans and leases / total loans/leases held for investment			1.24	%			1.28	%			1.32	%			1.32	%			1.30	%
ACL for loans and leases / nonperforming loans/leases			210.31	%			208.84	%			189.76	%			202.57	%			248.21	%
Net charge-offs as a % of average loans/leases			0.06	%			0.09	%			0.06	%			0.05	%			0.05	%
INTERNALLY ASSIGNED RISK RATING (1)
Special mention		$	76,750			$	68,621			$	55,327			$	73,636			$	80,121
Substandard (2)			67,319				81,040				85,033				84,930				70,022
Doubtful (2)			—				—				—				—				—
Total Criticized loans (3)		$	144,069			$	149,661			$	140,360			$	158,566			$	150,143
Classified loans as a % of total loans/leases (2)			0.94	%			1.17	%			1.25	%			1.25	%			1.03	%
Total Criticized loans as a % of total loans/leases (3)			2.01	%			2.16	%			2.06	%			2.34	%			2.20	%

______________________________

(1)		Amounts exclude the government guaranteed portion, if any. The Company assigns internal risk ratings of Pass for the government guaranteed portion.
(2)		Classified loans are defined as loans with internally assigned risk ratings of 10 or 11, regardless of performance, and include loans identified as Substandard or Doubtful.
(3)		Total Criticized loans are defined as loans with internally assigned risk ratings of 9, 10, or 11, regardless of performance, and include loans identified as Special Mention, Substandard, or Doubtful.

QCR Holdings, Inc. Consolidated Financial Highlights (Unaudited)
		For the Quarter Ended												For the Nine Months Ended
		September 30,				June 30,				September 30,				September 30,				September 30,
SELECT FINANCIAL DATA - SUBSIDIARIES		2025				2025				2024				2025				2024
			(dollars in thousands)
TOTAL ASSETS
Quad City Bank and Trust (1)		$	2,794,136			$	2,662,450			$	2,552,962
m2 Equipment Finance, LLC			211,524				242,722				349,166
Cedar Rapids Bank and Trust			2,760,379				2,664,293				2,625,943
Community State Bank			1,680,476				1,605,966				1,519,585
Guaranty Bank			2,446,635				2,365,944				2,360,301
TOTAL DEPOSITS
Quad City Bank and Trust (1)		$	2,407,371			$	2,309,942			$	2,205,465
Cedar Rapids Bank and Trust			1,890,779				1,884,370				1,765,964
Community State Bank			1,296,255				1,272,296				1,269,147
Guaranty Bank			1,835,993				1,866,749				1,778,453
TOTAL LOANS & LEASES
Quad City Bank and Trust (1)		$	2,118,791			$	2,032,168			$	2,090,856
m2 Equipment Finance, LLC			217,966				250,019				353,259
Cedar Rapids Bank and Trust			1,894,594				1,852,316				1,743,809
Community State Bank			1,269,359				1,206,735				1,161,805
Guaranty Bank			1,896,178				1,833,706				1,832,331
TOTAL LOANS & LEASES / TOTAL DEPOSITS
Quad City Bank and Trust (1)			88	%			88	%			95	%
Cedar Rapids Bank and Trust			100	%			98	%			99	%
Community State Bank			98	%			95	%			92	%
Guaranty Bank			103	%			98	%			103	%
TOTAL LOANS & LEASES / TOTAL ASSETS
Quad City Bank and Trust (1)			76	%			76	%			82	%
Cedar Rapids Bank and Trust			69	%			70	%			66	%
Community State Bank			76	%			75	%			76	%
Guaranty Bank			78	%			78	%			78	%
ACL ON LOANS/LEASES HELD FOR INVESTMENT AS A PERCENTAGE OF LOANS/LEASES HELD FOR INVESTMENT
Quad City Bank and Trust (1)			1.24	%			1.32	%			1.49	%
m2 Equipment Finance, LLC			4.48	%			4.26	%			4.11	%
Cedar Rapids Bank and Trust			1.31	%			1.35	%			1.38	%
Community State Bank			0.97	%			1.09	%			1.06	%
Guaranty Bank			1.34	%			1.29	%			1.14	%
RETURN ON AVERAGE ASSETS (ANNUALIZED)
Quad City Bank and Trust (1)			1.20	%			1.24	%			0.76	%			1.25	%			0.81	%
Cedar Rapids Bank and Trust			3.26	%			2.36	%			2.52	%			2.60	%			2.84	%
Community State Bank			1.40	%			1.31	%			1.46	%			1.27	%			1.33	%
Guaranty Bank			1.30	%			0.85	%			1.28	%			0.96	%			1.20	%
NET INTEREST MARGIN PERCENTAGE (2)
Quad City Bank and Trust (1)			3.40	%			3.45	%			3.50	%			3.43	%			3.40	%
Cedar Rapids Bank and Trust			4.03	%			3.99	%			3.88	%			4.01	%			3.80	%
Community State Bank			3.90	%			3.87	%			3.76	%			3.85	%			3.74	%
Guaranty Bank (3)			3.22	%			3.11	%			3.12	%			3.13	%			3.03	%
ACQUISITION-RELATED AMORTIZATION/ACCRETION INCLUDED IN NET
INTEREST MARGIN, NET
Community State Bank		$	(1	)		$	(1	)		$	(1	)		$	(3	)		$	(3	)
Guaranty Bank			216				118				496				552				1,194
QCR Holdings, Inc. (4)			(33	)			(33	)			(32	)			(98	)			(97	)

______________________________

(1)		Quad City Bank and Trust amounts include m2 Equipment Finance, LLC, as this entity is wholly-owned and consolidated with the Bank. m2 Equipment Finance, LLC is also presented separately for certain (applicable) measurements.
(2)		Includes nontaxable securities and loans. Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(3)		Guaranty Bank's net interest margin percentage includes various purchase accounting adjustments. Excluding those adjustments, net interest margin (Non-GAAP) would have been 3.00% for the quarter ended September 30, 2025, 2.86% for the quarter ended June 30, 2025, and 2.94% for the quarter ended September 30, 2024.
(4)		Relates to the junior subordinated debentures acquired as part of the Guaranty Bank acquisition in 2017 and the Community National Bank acquisition in 2013.

QCR Holdings, Inc. Consolidated Financial Highlights (Unaudited)
		As of
		September 30,				June 30,				March 31,				December 31,				September 30,
GAAP TO NON-GAAP RECONCILIATIONS		2025				2025				2025				2024				2024
		(dollars in thousands, except per share data)
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO (1)
Stockholders' equity (GAAP)		$	1,086,915			$	1,050,554			$	1,022,747			$	997,387			$	976,620
Less: Intangible assets			147,672				148,333				148,995				149,657				150,347
Tangible common equity (non-GAAP)		$	939,243			$	902,221			$	873,752			$	847,730			$	826,273
Total assets (GAAP)		$	9,568,302			$	9,242,331			$	9,152,779			$	9,026,030			$	9,088,565
Less: Intangible assets			147,672				148,333				148,995				149,657				150,347
Tangible assets (non-GAAP)		$	9,420,630			$	9,093,998			$	9,003,784			$	8,876,373			$	8,938,218
Tangible common equity to tangible assets ratio (non-GAAP)			9.97	%			9.92	%			9.70	%			9.55	%			9.24	%

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(1)		This ratio is a non-GAAP financial measure. The Company's management believes that this measurement is important to many investors in the marketplace who are interested in changes period-to-period in common equity. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to stockholders' equity and total assets, which are the most directly comparable GAAP financial measures.

QCR Holdings, Inc. Consolidated Financial Highlights (Unaudited)
GAAP TO NON-GAAP RECONCILIATIONS		For the Quarter Ended																				For the Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
ADJUSTED NET INCOME (1)		2025				2025				2025				2024				2024				2025				2024
			(dollars in thousands, except per share data)
Net income (GAAP)		$	36,714			$	29,019			$	25,797			$	30,225			$	27,785			$	91,530			$	83,625
Less non-core items (post-tax) (2):
Income:
Fair value loss on derivatives, net			(223	)			(397	)			(156	)			(2,594	)			(542	)			(776	)			(831	)
Total adjusted income (non-GAAP)		$	(223	)		$	(397	)		$	(156	)		$	(2,594	)		$	(542	)		$	(776	)		$	(831	)
Expense:
Goodwill impairment			—				—				—				—				431				—				431
Restructuring expense			—				—				—				—				1,544				—				1,544
Total adjusted expense (non-GAAP)		$	—			$	—			$	—			$	—			$	1,975			$	—			$	1,975
Adjusted net income (non-GAAP) (1)		$	36,937			$	29,416			$	25,953			$	32,819			$	30,302			$	92,306			$	86,431
ADJUSTED EARNINGS PER COMMON SHARE (1)
Adjusted net income (non-GAAP) (from above)		$	36,937			$	29,416			$	25,953			$	32,819			$	30,302			$	92,306			$	86,431
Weighted average common shares outstanding			16,919,785				16,928,542				16,900,785				16,871,652				16,846,200				16,916,371				16,814,787
Weighted average common and common equivalent shares outstanding			17,015,730				17,006,282				17,013,992				17,024,481				16,982,400				17,011,877				16,938,309
Adjusted earnings per common share (non-GAAP):
Basic		$	2.18			$	1.74			$	1.54			$	1.95			$	1.80			$	5.46			$	5.14
Diluted		$	2.17			$	1.73			$	1.53			$	1.93			$	1.78			$	5.43			$	5.10
ADJUSTED RETURN ON AVERAGE ASSETS AND AVERAGE EQUITY (1)
Adjusted net income (non-GAAP) (from above)		$	36,937			$	29,416			$	25,953			$	32,819			$	30,302			$	92,306			$	86,431
Average Assets		$	9,354,411			$	9,155,473			$	9,015,439			$	9,050,280			$	8,968,653			$	9,176,349			$	8,765,913
Adjusted return on average assets (annualized) (non-GAAP)			1.58	%			1.29	%			1.15	%			1.45	%			1.35	%			1.34	%			1.31	%
Adjusted return on average equity (annualized) (non-GAAP)			13.73	%			11.30	%			10.20	%			13.19	%			12.60	%			11.78	%			12.40	%
NET INTEREST MARGIN (TEY) (3)
Net interest income (GAAP)		$	64,799			$	62,082			$	59,986			$	61,204			$	59,722			$	186,867			$	170,584
Plus: Tax equivalent adjustment (4)			10,864				10,090				9,513				9,698				9,544				30,467				26,803
Net interest income - tax equivalent (non-GAAP)		$	75,663			$	72,172			$	69,499			$	70,902			$	69,266			$	217,334			$	197,387
Less: Acquisition accounting net accretion			182				84				184				471				463				451				1,094
Adjusted net interest income		$	75,481			$	72,088			$	69,315			$	70,431			$	68,803			$	216,883			$	196,293
Average earning assets		$	8,575,514			$	8,377,361			$	8,241,035			$	8,241,190			$	8,183,196			$	8,399,651			$	7,997,334
Net interest margin (GAAP)			3.00	%			2.97	%			2.95	%			2.95	%			2.90	%			2.97	%			2.85	%
Net interest margin (TEY) (non-GAAP)			3.51	%			3.46	%			3.42	%			3.43	%			3.37	%			3.46	%			3.30	%
Adjusted net interest margin (TEY) (non-GAAP)			3.50	%			3.45	%			3.41	%			3.40	%			3.34	%			3.45	%			3.28	%
EFFICIENCY RATIO (5)
Noninterest expense (GAAP)		$	56,587			$	49,583			$	46,539			$	53,499			$	53,565			$	152,709			$	154,143
Net interest income (GAAP)		$	64,799			$	62,082			$	59,986			$	61,204			$	59,722			$	186,867			$	170,584
Noninterest income (GAAP)			36,651				22,115				16,892				30,625				27,157				75,658				84,904
Total income		$	101,450			$	84,197			$	76,878			$	91,829			$	86,879			$	262,525			$	255,488
Efficiency ratio (noninterest expense/total income) (non-GAAP)			55.78	%			58.89	%			60.54	%			58.26	%			61.65	%			58.17	%			60.33	%
Adjusted efficiency ratio (adjusted noninterest expense/adjusted total income) (non-GAAP)			55.62	%			58.54	%			60.38	%			56.25	%			58.45	%			57.95	%			59.16	%

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(1)		Adjusted net income, adjusted earnings per common share, adjusted return on average assets and average equity are non-GAAP financial measures. The Company's management believes that these measurements are important to investors as they exclude non-core or non-recurring income and expense items, therefore, they provide a more realistic run-rate for future periods. In compliance with applicable rules of the SEC, these non-GAAP measures are reconciled to net income, which is the most directly comparable GAAP financial measure.
(2)		Non-core or non-recurring items (post-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.
(3)		Interest earned and yields on nontaxable securities and loans are determined on a tax equivalent basis using a 21% effective federal tax rate.
(4)		Net interest margin (TEY) is a non-GAAP financial measure. The Company's management utilizes this measurement to take into account the tax benefit associated with certain loans and securities. It is also standard industry practice to measure net interest margin using tax-equivalent measures. In compliance with applicable rules of the SEC, this non-GAAP measure is reconciled to net interest income, which is the most directly comparable GAAP financial measure. In addition, the Company calculates net interest margin without the impact of acquisition accounting net accretion as this can fluctuate and it's difficult to provide a more realistic run-rate for future periods.
(5)		Efficiency ratio is a non-GAAP measure. The Company's management utilizes this ratio to compare to industry peers. The ratio is used to calculate overhead as a percentage of revenue. In compliance with the applicable rules of the SEC, this non-GAAP measure is reconciled to noninterest expense, net interest income and noninterest income, which are the most directly comparable GAAP financial measures.