Exhibit 99.1

QCR Holdings, Inc. Announces Record Net Income of $31.6 Million
for the Third Quarter of 2021

Third Quarter 2021 Highlights

Moline, IL, October 27, 2021 -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced record net income of $31.6 million and diluted earnings per share (“EPS”) of $1.99 for the third quarter of 2021, compared to net income of $22.3 million and diluted EPS of $1.39 for the second quarter of 2021.

Adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) for the third quarter of 2021 were the same as GAAP net income and diluted EPS, as there were no meaningful non-core adjustments during the quarter. For the second quarter of 2021, adjusted net income (non-GAAP) was $22.5 million and adjusted diluted EPS (non-GAAP) was $1.40. For the third quarter of 2020, adjusted net income (non-GAAP) and adjusted diluted EPS (non-GAAP) were $17.7 million and $1.11, respectively.

Adjusted non-GAAP measurements of financial performance exclude non-recurring income and expense items that management believes are not reflective of the anticipated future operation of the Company’s business. The Company believes these measurements provide a better comparison for analysis and may provide a better indicator of future performance. See GAAP to non-GAAP reconciliations.

“We are very pleased with our outstanding financial performance for the third quarter,” said Larry J. Helling, Chief Executive Officer. “We delivered another record quarter of net income, driven by exceptional loan growth, strong fee income, an expanded net interest margin and strong credit quality. We grew core loans 23% on an annualized basis, largely funded with core deposit growth of 16%. This exceptional performance is reflective of our core values, one of which is our relationship-based community banking model, emphasizing the importance of strong relationships with new and existing clients.”

Annualized Loan and Lease Growth of 23% for the Quarter and 18% YTD, excluding PPP Loans (non-GAAP)

During the third quarter of 2021, the Company’s core loans and leases, excluding PPP loans, increased $246.0 million to a total of $4.5 billion. Core loan and lease growth during the quarter was 23.0% on an annualized basis and was funded by core deposit growth and some excess liquidity. Core deposits (excluding brokered deposits) increased by $183.0 million during the quarter. The Company’s wholesale funding portfolio has been reduced to predominately subordinated debt that qualifies as regulatory capital.

“Our continued robust loan growth was driven primarily by strength in our Specialty Finance Group as well as continued growth in our traditional commercial lending and leasing business,” added Helling. “Given the 18% annualized loan growth we have delivered over the first nine months of 2021, combined with our current pipeline, we are now targeting organic loan growth for the full year 2021 of between 16% and 18%.”

Record Net Interest Income of $46.2 million

Net interest income for the third quarter of 2021 totaled $46.2 million, compared to $43.5 million for the second quarter of 2021 and $44.6 million for the third quarter of 2020. Adjusted net interest income (non-GAAP) during the quarter was $48.5 million, an increase of $2.8 million, or 6.2%, from the prior quarter, due to an increase in adjusted NIM combined with strong loan/lease growth. Adjusted net interest income (non-GAAP) was $45.7 million for the third quarter of 2020. Acquisition-related net accretion totaled $456 thousand for the third quarter of 2021, up from $291 thousand in the second quarter of 2021 and down from $833 thousand for the third quarter of 2020.

In the third quarter, reported NIM was 3.36% and tax-equivalent yield basis (non-GAAP) NIM was 3.56%, compared to 3.28% and 3.46% in the prior quarter, respectively. Adjusted NIM (non-GAAP), which excludes acquisition-related net accretion, was 3.53%, up 9 basis points from the second quarter. The increase in Adjusted NIM (non-GAAP) during the quarter was primarily due to a 7 basis point increase in the yield on earning assets (adjusted for acquisition-related net accretion, non-GAAP) driven by fees associated with $63.9 million of PPP loans that were forgiven during the quarter. In addition, adjusted NIM benefited from a decline of 2 basis points in the total cost of interest-bearing funds (due to both mix and rate).

“We expanded our NIM again during the third quarter, bolstered by higher PPP fees, lower deposit costs and relatively stable core loan yields in this highly competitive lending environment,” said Todd A. Gipple, President, Chief Operating Officer and Chief Financial Officer. “With our strong loan and lease growth and margin expansion, net interest income grew by 6% in the quarter when excluding the impact of acquisition accounting.”

Noninterest Income of $34.7 million

Noninterest income for the third quarter of 2021 totaled $34.7 million, compared to $19.3 million for the second quarter of 2021. The increase was primarily due to a $15.3 million increase in capital markets revenue from the prior quarter. Wealth management revenue was $3.8 million for the quarter, consistent with the second quarter.

“Capital markets revenue totaled $24.9 million for the quarter, which benefited from a number of swap transactions that were scheduled to close in the second quarter carrying over into the third quarter,” added Gipple. “Capital markets revenue averaged $16 million per quarter for the first nine months of 2021 and $16.3 million for the last eight quarters. This gives us confidence in the sustainability of this important source of fee income and supports our continued guidance range of $14 to $18 million per quarter.”

Noninterest Expenses of $41.4 million

Noninterest expense for the third quarter of 2021 totaled $41.4 million, compared to $35.7 million for the second quarter of 2021 and $40.8 million for the third quarter of 2020. The linked-quarter increase was primarily due to higher performance-based salary and benefits expense of $5.2 million, driven by strong capital markets revenue production and earnings performance during the quarter. Additionally, the Company recorded a $1.5 million charge related to the write-down of certain fixed assets. Partially offsetting these increases was a $1.3 million net gain on the sale of other real estate.

Asset Quality Remains Strong and NPAs Improved

Nonperforming assets (“NPAs”) totaled $6.8 million at the end of the third quarter, a decrease of $3.3 million from the second quarter of 2021. The decrease was primarily due to the sale of a commercial property classified as other real estate owned and a reduction in nonaccrual loans that either returned to performing status or were monetized during the quarter. The ratio of NPAs to total assets improved to 0.11% on September 30, 2021, compared to 0.17% on June 30, 2021, and 0.31% on September 30, 2020. In addition, the Company’s criticized loans and classified loans to total loans and leases decreased to 2.57% and 1.29%, respectively, from 2.97% and 1.80% as of June 30, 2021.

The Company did not record a provision for credit losses in the third quarter of 2021, primarily due to continued strong asset quality and a reduction in nonperforming loans. Similarly, there was no provision for credit losses recorded in the second quarter of 2021. As of September 30, 2021, the ACL on total loans/leases was 1.75%, compared to 1.79% as of June 30, 2021. Excluding PPP loans of $84 million, the ACL to total loans/leases as of September 30, 2021, was 1.79% (non-GAAP).

Continued Strong Capital Levels

As of September 30, 2021, the Company’s total risk-based capital ratio was 14.51%, the common equity tier 1 ratio was 10.45% and the tangible common equity to tangible assets ratio (non-GAAP) was 9.54%. By comparison, these respective ratios were 14.72%, 10.52% and 9.55% as of June 30, 2021. During the third quarter, the Company continued its existing share repurchase program and purchased and retired 193,153 shares at an average price of $48.50 per share.

Focus on Three Strategic Long-Term Initiatives

As part of the Company’s ongoing efforts to grow earnings and drive attractive long-term returns for shareholders, it continues to operate under three key strategic long-term initiatives:

Conference Call Details

The Company will host an earnings call/webcast tomorrow, October 28, 2021, 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 November 11, 2021. The replay access information is 877-344-7529 (international 412-317-0088); access code 10159948. A webcast of the teleconference can be accessed at 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 Springfield First Community 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. Quad City Bank & Trust Company offers equipment loans and leases to businesses through its wholly-owned subsidiary, m2 Equipment Finance, LLC, based in Milwaukee, Wisconsin, and also provides correspondent banking services. The Company has 24 locations in Iowa, Missouri, Wisconsin and Illinois. As of September 30, 2021, the Company had approximately $6.0 billion in assets, $4.6 billion in loans and $4.9 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

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,” “predict,” “suggest,” “appear,” “plan,” “intend,” “estimate,” ”annualize,” “may,” “will,” “would,” “could,” “should” 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, among others, the following: (i) the strength of the local, state, national and international economies; (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics (including the COVID-19 pandemic in the United States), acts of war or other threats thereof, or other adverse external 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; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB or the PCAOB; (iv) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of LIBOR phase-out); (vi) increased competition in the financial services sector and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; and (xiii) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. 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 Securities and Exchange Commission.

Contacts:

(1) Provision for credit losses only included provision for loans/leases for years prior to 2021.    

(1) Includes accumulated other comprehensive income (loss).

(2) Includes accumulated other comprehensive income (loss) and excludes intangible assets (Non-GAAP).

(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) Growth in full-time equivalents from September 30, 2020 to December 31, 2020 due to the addition of new positions created to build scale.

ANALYSIS OF NET INTEREST INCOME AND MARGIN