QCR Holdings, Inc. (QCRH): Business Model Canvas [Dec-2025 Updated]

You're trying to get a clear picture of how a focused regional bank like QCR Holdings, Inc. is navigating the current financial landscape, and honestly, it's more complex than just loaning money. After reviewing their late 2025 performance-where they managed $9.6 billion in assets and a $7.4 billion deposit base-it's clear their model is a hybrid: relationship-driven commercial banking layered with specialized capital markets activities, like LIHTC financing. They are actively executing a multi-year digital transformation while keeping their service high-touch for commercial clients, all powered by a team of just 1,039 employees. This canvas distills exactly how QCR Holdings, Inc. turns those $64.8 million in quarterly Net Interest Income and $36.7 million in Noninterest Income into shareholder value, so check out the nine building blocks below to see the mechanics.

QCR Holdings, Inc. (QCRH) - Canvas Business Model: Key Partnerships

You're looking at the critical external relationships QCR Holdings, Inc. relies on to execute its strategy, especially as they push toward that $10 billion asset goal. These aren't just vendors; they are foundational to scaling operations and maintaining local autonomy across the four bank charters.

The technology backbone is clearly centered on a major commitment to modernization. This move standardizes operations across Cedar Rapids Bank & Trust, Community Bank & Trust, Quad City Bank & Trust, Community State Bank, and Guaranty Bank, all under the umbrella of a holding company that reported $9.6 billion in assets as of September 30, 2025.

The focus on Low-Income Housing Tax Credit (LIHTC) lending is a core part of their lending mix, which saw loan growth in the second quarter of 2025. This business line is supported by securitizations, which help maintain portfolio concentration levels. Honestly, the historical industry-wide default rate for LIHTC since 1986 is only 0.22%, which speaks to the durability of that asset class.

The capital markets side, which often involves correspondent banks for funding or specialized transactions, is being bolstered by these activities. The company is preparing for its next securitization, which is expected to close in early 2026, following the successful 2024 securitization. Also, the wealth management segment, which relies heavily on deep professional relationships, saw its revenue grow 8% year-over-year in Q2 2025.

Here's the quick math on the scale of the operation supporting these partnerships as of late 2025:

• Total Assets (Sept 30, 2025): $9.6 billion
• Total Loans (Sept 30, 2025): $7.2 billion
• Record Q3 2025 Net Income: $37 million
• Q3 2025 Earnings Per Share: $2.17

What this estimate hides is the exact dollar volume of correspondent bank funding or the specific number of LIHTC developers QCR Holdings, Inc. actively works with. Finance: draft the Q4 2025 capital markets forecast by next Tuesday.

QCR Holdings, Inc. (QCRH) - Canvas Business Model: Key Activities

You're looking at the core engine of QCR Holdings, Inc. as of late 2025. These are the primary actions the company takes to deliver value across its markets in Iowa, Missouri, and Illinois.

• Commercial and consumer loan origination and portfolio management
• Deposit gathering and liability management (Total deposits: $7.4 billion)
• Wealth management and trust services for affluent clients
• Capital markets activities, including LIHTC investment and securitization
• Executing the multi-year digital transformation and core system conversion

The commercial and consumer loan origination is a major focus. As of September 30, 2025, the total loan portfolio stood at $7.2 billion. Loan growth was robust, hitting an annualized rate of 15% in the third quarter of 2025, and management is guiding for gross production in the 10% to 15% range continuing into 2026. Commercial lending is the backbone of this activity.

Deposit gathering is key to funding that loan book, and QCR Holdings, Inc. reported total deposits of $7.4 billion as of September 30, 2025. Core deposits saw strong growth, increasing by $410 million, or 8% annualized, year-to-date as of the third quarter. This growth helped the company reduce its reliance on wholesale funding.

Wealth management and trust services provide a significant noninterest income component. In the third quarter of 2025, Wealth Management revenue hit $5.0 million, marking an 8% increase from the second quarter of 2025 and a 15% annualized increase year-over-year. Assets Under Management (AUM) were reported at approximately $6.7 billion as of June 30, 2025. That's a solid stream of fee income you want to see.

Capital markets activities, heavily weighted toward Low-Income Housing Tax Credit (LIHTC) lending, showed a sharp rebound in the third quarter of 2025. Capital markets revenue reached $23.8 million in Q3 2025, a massive jump of 141% from the $9.9 million generated in the second quarter of 2025. The total LIHTC loan portfolio was $4.9 billion as of March 31, 2025, and the company is planning its next securitization for early 2026, targeting around $350 million. Management increased its forward guidance for capital markets revenue to a range of $55 million to $65 million over the next four quarters.

Finally, the multi-year digital transformation is actively underway. QCR Holdings, Inc. selected Jack Henry to standardize technology across its four subsidiary banks. This effort includes a core system conversion, and you should note that the successful conversion for the first of its 4 charters was completed in October 2025. This is a defintely big operational undertaking, with associated noninterest expenses noted in the second quarter guidance.

Finance: draft 13-week cash view by Friday.

QCR Holdings, Inc. (QCRH) - Canvas Business Model: Key Resources

You're mapping out the core assets QCR Holdings, Inc. relies on to execute its strategy as of late 2025. These are the tangible and intangible foundations that support their multi-bank holding company structure.

Financial Capital

The financial muscle supporting QCR Holdings, Inc.'s operations is substantial, reflecting its growth trajectory across its Midwest markets. As of the end of the third quarter of 2025, the balance sheet showed significant scale.

• - Total assets on the balance sheet as of September 2025 were reported at approximately $9.56 billion USD.
• - This represents growth from the prior year, as total assets were reported at $9,026,030 thousand (or $9.026 billion) for FY 2024.
• - The company is confident enough in its position to be looking toward a near-term asset goal beyond $10 billion.

Loan Portfolio and Earning Assets

The loan portfolio is the primary engine for net interest income, a key revenue pillar for QCR Holdings, Inc. The portfolio demonstrated robust expansion through the third quarter of 2025.

The total loans and leases held for investment reached a significant milestone by the end of the third quarter of 2025.

The company is focused on maintaining strong asset quality, with Non-Performing Assets (NPAs) to total assets reported at a low level.

Human Capital

The people are central to the relationship-driven model, operating across multiple community banks. The scale of the workforce supports the decentralized decision-making.

• - QCR Holdings, Inc. reports having 1,039 Employees across its structure as of late 2025.
• - This headcount supports operations across 4 Banks and 6 Communities.
• - Revenue per employee for the trailing twelve months ending September 30, 2025, was approximately $332,303.

Intellectual Capital

This resource is defined by the operational philosophy that balances local autonomy with centralized efficiency. It's the cultural and structural blueprint for how QCR Holdings, Inc. operates its distinct bank charters.

• - The structure is explicitly described as relationship-driven, serving clients and communities at a local level.
• - This is achieved by operating four independent, community-focused bank charters: Quad City Bank & Trust, Cedar Rapids Bank & Trust, Community State Bank, and Guaranty Bank.
• - The model benefits from the strength and efficiencies of centralized operations while maintaining local decision-making.

Technology

Technology is rapidly becoming a standardized, shared asset, moving away from disparate systems to a unified, modern core. This is a critical recent development for scalability.

QCR Holdings, Inc. selected Jack Henry to modernize the technology infrastructure across all four subsidiary banks, standardizing operations.

• - The chosen platform is Jack Henry's modern and configurable core processing platform.
• - The strategy includes leveraging Jack Henry's Data Hub solution, which provides real-time access to data via the Google Cloud Platform.
• - This move is intended to streamline internal operations using products like Enterprise Workflow and Synergy, boosting efficiency.
• - The open ecosystem provides access to over 950 API-integrated fintechs, allowing banks to select best-of-breed solutions.

If onboarding takes 14+ days, churn risk rises.

Finance: draft 13-week cash view by Friday.

QCR Holdings, Inc. (QCRH) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose QCR Holdings, Inc. (QCRH) over the competition. It's not just about deposits and loans; it's about how they package their services to deliver value across different client needs.

The primary value proposition centers on delivering a relationship-driven, local banking experience while leveraging the financial stability and operational scale of a larger organization. They operate through four wholly-owned subsidiary banks, maintaining local decision-making with veteran bankers across their markets in Iowa, Missouri, and Illinois. This structure allows them to serve clients and communities at a local level while benefiting from centralized efficiencies.

• - Relationship-driven, local banking with centralized scale and strength
• - Full-service commercial banking, including specialized LIHTC financing
• - Comprehensive wealth management and trust services
• - Strong capital position with Tangible Common Equity at 9.97% (Sep 2025)

For commercial clients, QCR Holdings, Inc. offers full-service commercial and consumer banking. A key differentiator is their Specialty Finance Group (SFG), which provides specialized financing, notably in Low-Income Housing Tax Credit (LIHTC) lending. This segment has historically provided consistent revenue across economic cycles. To be fair, maintaining that specialized focus while growing the core business takes real discipline.

The wealth management and trust services component is a significant non-interest income stream, showing strong growth momentum. This diversification helps QCR Holdings, Inc. outperform peers who rely more heavily on traditional interest income. Here's a quick look at the scale of these key service areas as of mid-to-late 2025:

The capital strength underpins all these offerings. The commitment to maintaining a robust balance sheet is evident in their regulatory ratios. The company reported record quarterly net income of $\mathbf{\$36.7 \text{ million}}$ for the third quarter of 2025, which directly supported their capital position.

• The Tangible Common Equity to Tangible Assets ratio stood at 9.97% as of September 30, 2025.
• The Total Risk-Based Capital Ratio was 14.03% as of September 30, 2025.
• The Common Equity Tier 1 Ratio was 10.34% as of September 30, 2025.
• They operate across 36 locations in Iowa, Missouri, and Illinois.

Finance: draft the capital deployment impact analysis based on the Q3 2025 TCE/TA ratio by next Tuesday.

QCR Holdings, Inc. (QCRH) - Canvas Business Model: Customer Relationships

QCR Holdings, Inc. anchors its entire operation on a relationship-driven, multi-bank holding company structure, which is designed to serve clients at a local level while benefiting from centralized strength. This focus is evident in how they structure client interactions across their subsidiary banks.

Dedicated relationship managers for commercial and wealth clients

The core of the commercial service offering relies on specialized personnel. For instance, the Commercial Relationship Banker role explicitly focuses on establishing and maintaining commercial relationships, client retention, and acting as a financial consultant on commercial activities. This role requires working closely with the commercial lending department to maximize cross-selling opportunities across the full range of banking products. This high-touch approach is also critical in the wealth segment, where the strategy is clearly geared toward deepening client ties. As of the second quarter of 2025, the company reported $6.7 billion in Assets Under Management (AUM), a segment that saw 14% annualized revenue growth in the first quarter of 2025, reflecting success in advisory relationships. The commitment to local market dominance supports this, with QCR Holdings, Inc. holding #1 market share in both the Quad Cities and Cedar Rapids, Iowa markets as of the second quarter of 2025. This local strength is the platform for personalized service.

The success of this relationship focus is reflected in the firm's overall financial performance, with QCR Holdings, Inc. announcing record quarterly net income of $36.7 million for the third quarter of 2025.

High-touch, advisory-based service model at the subsidiary bank level

The service model is intentionally decentralized, operating through independent, community-focused bank charters that attract top-tier talent. This structure allows for local decision-making, which is the essence of high-touch service. The company's vision emphasizes Exceptional people providing extraordinary performance for our clients, which translates into a service culture where employees are deeply engaged and care about their clients and communities. This local autonomy allows the banks to tailor their advisory services, whether it is in commercial lending or trust and wealth management. The firm operates 36 locations across Iowa, Illinois, and Missouri, ensuring proximity to its customer base. As of September 30, 2025, the total client base was supported by 1,039 employees across the organization.

Here are some key metrics illustrating the scale and focus of the customer base as of late 2025:

Digital self-service options for transactional efficiency

While the emphasis is on personal relationships, QCR Holdings, Inc. is actively modernizing its digital capabilities to support transactional efficiency. In November 2025, the company made a strategic decision to select Jack Henry to modernize the technology infrastructure across all four subsidiary banks. This move is specifically aimed at elevating both client and employee experiences and enabling a data-driven growth strategy. The goal is to use a modern, open platform that allows the banks the flexibility to integrate best-of-breed solutions for their specific market and customer needs, which inherently includes enhancing digital self-service tools for routine transactions. This technology standardization is a concrete action to improve efficiency while preserving the local, personal service that defines their culture. You can expect this transition to roll out solutions that streamline internal operations, which will ultimately free up relationship managers for more complex advisory work.

Finance: draft 13-week cash view by Friday.

QCR Holdings, Inc. (QCRH) - Canvas Business Model: Channels

You're looking at how QCR Holdings, Inc. gets its services-commercial banking, consumer banking, trust, and wealth management-out to its customers across the Midwest. Their channel strategy leans heavily on a decentralized, local bank structure supported by centralized digital tools.

The primary delivery mechanism is through its four wholly-owned banking subsidiaries, which operate with local autonomy but benefit from the holding company's scale. This structure is key to their relationship-driven model.

• - Wholly-owned subsidiary banks: Quad City Bank & Trust (QCBT), Cedar Rapids Bank and Trust (CRBT), Community State Bank (CSB), and Guaranty Bank (GB).
• - QCBT also houses m2 Equipment Finance, LLC, which handles direct financing lease contracts.
• - The company serves communities across Iowa, Missouri, and Illinois.

The physical footprint is substantial, providing that crucial local touchpoint. As of September 30, 2025, QCR Holdings, Inc. operated a network of 36 locations across these three states.

The physical network is being actively expanded; for instance, QCBT broke ground in May 2025 on a new Bettendorf headquarters that will also house a new consumer banking branch, signaling a move toward 37 locations.

Digital channels are essential for efficiency and broader reach, especially as the company modernizes its core technology. QCR Holdings, Inc. uses mobile and online banking platforms for consumer and business transactions. This digital push is underscored by the recent decision to upgrade its four subsidiary banks with Jack Henry's hosted core processing platform to enhance operational efficiency and digital banking experiences for both employees and customers.

For specialized services, QCR Holdings, Inc. relies on dedicated internal teams acting as direct sales channels. These teams focus on high-value, fee-based services:

• - Direct sales teams target Commercial Banking relationships.
• - Dedicated wealth management professionals drive growth in trust and asset management services.
• - Wealth management assets under management reached $6.7 billion as of June 30, 2025.
• - Non-interest income, which includes wealth management and capital markets revenue, totaled $22 million in Q2 2025, representing 26% of total revenue.

This mix of local branches and centralized digital/sales teams helps manage the company's $9.6 billion in assets as of September 30, 2025.

QCR Holdings, Inc. (QCRH) - Canvas Business Model: Customer Segments

You're analyzing the core customer base for QCR Holdings, Inc. as of late 2025. The bank holding company focuses on a relationship-driven approach across its four subsidiary banks in the Midwest.

Commercial businesses (small to middle-market) in the Midwest form the backbone of the lending activity. Commercial lending is a dominant focus, representing 92% of the total loan book as of the Q2 2025 update. Total loans and leases held for investment reached $7.2 billion by the end of the third quarter of 2025. The company's strategy is clearly weighted toward these business clients.

Here's the quick math on how the commercial loan portfolio is segmented as of mid-2025:

Affluent individuals and families requiring wealth and trust management represent a key fee-income segment. Wealth Management revenue for the third quarter of 2025 totaled $5.0 million, showing an 8% sequential increase from the second quarter of 2025. This segment has shown strong growth, with annualized revenue increases of 15% reported for the third quarter. As of a recent presentation, Wealth Management Assets Under Management (AUM) stood at $6.3 billion.

Retail consumers in local Iowa, Illinois, and Missouri communities are served through the company's multi-bank structure. The company operates 36 locations across these three states, serving markets like the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny, and Springfield. Core deposits, a key indicator of retail and small business banking relationships, increased by $410.2 million year-to-date as of Q3 2025, reflecting an 8% annualized growth rate. Total deposits were reported at $7.4 billion as of September 30, 2025.

The retail and local consumer base is supported by the following geographic structure:

• Serving communities in Iowa, Missouri, and Illinois.
• Operating through four distinct bank charters.
• Total assets reached $9.6 billion as of September 30, 2025.
• The company is headquartered in Moline, Illinois.

Affordable housing developers (LIHTC investors/borrowers) are a specialized, yet significant, customer group, particularly within the loan portfolio. Total Low-Income Housing Tax Credit (LIHTC) balances within the loan/lease portfolio were reported at $2.2 billion at March 31, 2025. The company views securitizations as a mechanism to provide capacity to sustain future LIHTC asset generation, indicating this segment is integral to their capital markets strategy.

Finance: draft 13-week cash view by Friday.

QCR Holdings, Inc. (QCRH) - Canvas Business Model: Cost Structure

You're looking at the hard costs QCR Holdings, Inc. has to cover to keep the lights on and the business running, which is the core of the Cost Structure block. For a bank like QCRH, these are largely driven by funding costs, people, and technology investment.

The cost of funds is a major component. While the specific figure for subordinated notes isn't explicitly stated in the latest reports, we know the cost of deposits is significant. For instance, the Interest Expense on Deposits was reported at $51.0 million for the second quarter of 2025, showing you the scale of their funding costs. This is the money QCR Holdings, Inc. pays out to keep customer money in the bank.

Personnel costs are next. As of late 2025 reporting, QCR Holdings, Inc. operated with 1,039 employees across its four community banks and centralized operations. Compensation, especially variable pay tied to performance, directly impacts expenses. For example, noninterest expense in the third quarter of 2025 rose by $7.0 million linked-quarterly, driven in part by variable compensation linked to robust capital markets revenue and loan growth.

Management sets expectations for overhead, which they call noninterest expenses. For the fourth quarter of 2025, QCR Holdings, Inc. guided noninterest expenses to be in the range of $52-$55 million. To be fair, the actual expense for the preceding quarter, Q3 2025, was $56.6 million, which was higher than the guidance provided for Q2 2025.

The bank is actively investing in its future operations, which shows up as a cost now. This includes Technology and data processing costs for digital transformation. These technology investments, such as the successful first core system conversion completed in the fourth quarter, are factored into the expense guidance and are expected to drive future operating leverage, though significant costs are anticipated to persist into 2026.

Finally, the cost of potential loan defaults is managed through the Provision for Credit Losses (PCL). For the third quarter of 2025, QCR Holdings, Inc. recorded a total provision for credit losses of $4.3 million. This was slightly up from the prior quarter's $4.0 million, reflecting loan growth even as asset quality improved overall.

Here's a quick look at some of the key cost drivers from the recent reporting periods:

You can see how variable compensation and technology spending are currently pushing the noninterest expense higher, even as the company guides for a slight moderation in Q4.

• Variable compensation tied to capital markets revenue surge.
• Professional and data processing expenses related to digital transformation.
• Costs associated with the first core operating system conversion.
• Ongoing expenses anticipated to continue into 2026 from tech upgrades.
• Net charge-offs were $4.2 million in Q3 2025, a decrease from the prior quarter.

Finance: draft 13-week cash view by Friday.

QCR Holdings, Inc. (QCRH) - Canvas Business Model: Revenue Streams

You're looking at how QCR Holdings, Inc. (QCRH) brings in the money, which for a bank like this, really boils down to interest earned versus fees and other activities. Honestly, the third quarter of 2025 showed a great mix of core banking strength and a big boost from specialty areas.

The primary engine remains the lending book. Loan and lease interest income is generated from the portfolio that stood at $7.2 billion as of September 30, 2025. This asset base is what fuels the most significant revenue component.

Net Interest Income (NII) is the profit from the spread between what QCR Holdings, Inc. earns on its loans and investments and what it pays out on deposits. For Q3 2025, the NII hit $64.8 million. This was driven by strong earning asset growth and expanded loan and investment yields.

The fee-based side, or Noninterest Income, was also very strong for the quarter, totaling $36.7 million for Q3 2025. This income stream is diversified across several key areas, showing the success of their multi-bank holding company structure.

Here's a breakdown of the key components making up that Noninterest Income for Q3 2025:

• - Capital Markets Revenue: A strong rebound to $23.8 million in Q3 2025.
• - Wealth Management Revenue: Contributed $5.0 million in Q3 2025.

The performance of these revenue streams in the third quarter of 2025 can be summarized like this:

The growth in the loan portfolio is a key driver for future NII, and management signaled confidence by increasing guidance for annualized loan growth to the 10% to 15% range for the next quarter. Also, the capital markets guidance was raised to a range between $55 million and $65 million over the next four quarters.

You can see the relationship between the core lending and the fee-based income streams:

• - NII made up about 63.9% of total revenue over the last five years, confirming lending is the largest revenue source.
• - Capital Markets revenue saw a massive linked-quarter increase of 141%.
• - Wealth Management revenue grew 15% annualized year-over-year.

Finance: draft 13-week cash view by Friday.