QCR Holdings (QCRH) Stock Forecast & Price Target

QCR Holdings Inc reported a notable 8% quarter-over-quarter increase in wealth management revenue, reaching $5.0 million, alongside a healthy growth in assets under management, which rose by $316 million to $7.0 billion. The company's net interest income (NII) of $72.2 million also grew by 4% quarter-over-quarter, supported by a favorable net interest margin (NIM) increase of 4 basis points, reflecting effective loan production and favorable repricing dynamics. Additionally, both tangible book value and tangible common equity saw a sequential increase of 5%, underscoring strong profitability and internal capital generation, with a reported return on assets (ROA) of 1.56% and return on tangible common equity (ROTCE) of 15.7% for the third quarter.

QCR Holdings Inc. has reported a revenue performance that fell short of expectations, particularly in its derivative fair value marks and capital markets revenue, which amounted to $9.9 million. Additionally, wealth management revenue experienced a decline of 6% quarter-over-quarter, even with the addition of new relationships and an increase in assets under management. Concerns about credit quality have emerged, as there is potential for deterioration among larger loans, which could lead to increased reserve building and negatively affect overall earnings.