Credit losses in commercial real estate and concentrated loan books
A small number of larger loans can move nonperforming metrics and provisions materially.
- Scope
- Commercial real estate and C&I portfolios
- Materiality
- high
QCR Holdings, Inc
QCR Holdings, Inc. is a U.S.-based multi-bank holding company headquartered in Moline, Illinois. Through its four wholly owned banking subsidiaries, it provides commercial and consumer banking, trust, asset management, leasing, and equipment financing services across markets in Iowa, Wisconsin, Missouri, and Illinois.
| % | |
|---|---|
| Commercial Banking | 45% Business and commercial loans, treasury services, deposits, and related banking products. |
| Consumer Banking | 15% Retail deposits, personal loans, and everyday banking services for individuals. |
| Correspondent Banking | 15% Deposit, liquidity, and banking services provided to downstream banks. |
| Wealth Management | 15% Trust, investment advisory, custodial, and asset management services. |
| Leasing and Equipment Finance | 10% Direct financing leases and equipment financing agreements through m2. |
QCR Holdings serves commercial and consumer customers in local Midwest banking markets, including businesses,...
- Commercial borrowersprimary
Businesses and partnerships that use commercial loans, deposits, and treasury services for working capital and growth.
- Retail and consumer customerssecondary
Individuals and households that use deposit accounts, consumer lending, and everyday banking services.
- Correspondent banksprimary
Community and regional banks that place deposits and use liquidity, participation, and bank stock loan services.
- Wealth management clientssecondary
Trust, custodial, and advisory clients who buy fee-based asset management and fiduciary services.
- Commercial real estate and specialty finance borrowerssecondary
Borrowers using CRE, LIHTC, lease, and equipment financing products tailored to specific projects.
The company is headquartered in Moline, Illinois and operates through banking subsidiaries based in Bettendorf, Cedar...
- •Headquartered in Moline, Illinois
- •Operates primarily in Iowa, Wisconsin, Missouri, and Illinois
- •Core markets include Quad Cities, Cedar Rapids, Waterloo/Cedar Falls, and Des Moines
- •Springfield, Missouri is served through Guaranty Bank
- •m2 is based in Waukesha, Wisconsin and supports leasing activity
QCR Holdings focuses on relationship-based banking in its Midwest footprint, supported by commercial lending,...
01
Grow core deposit franchiseshort-term
Stable, low-cost deposits support lending capacity and funding flexibility.
02
Expand fee-based businessesmedium-term
Wealth management and swap fees diversify revenue beyond spread income.
03
Deepen commercial relationshipsmedium-term
Bundling lending, deposits, swaps, and leasing increases customer retention.
04
Maintain disciplined credit underwriting
Commercial real estate and C&I concentrations require tight risk control.
QCR Holdings is exposed to credit risk, especially in commercial real estate and concentrated commercial lending, where...
Interest rate risk
Loan yields, deposit costs, securities values, and derivative marks all move with rates.
- Scope
- Net interest income and capital markets revenue
- Materiality
- high
Liquidity and funding risk
The bank relies on deposits, correspondent balances, and other funding sources.
- Scope
- Core deposits, brokered deposits, wholesale funding
- Materiality
- high
Regulatory and compliance risk
Banking operations are subject to extensive federal and state oversight.
- Scope
- Capital, lending, liquidity, and consumer compliance
- Materiality
- medium
Cybersecurity and third-party processing risk
Payment, card, and data flows depend on systems and vendors outside direct control.
- Scope
- Digital banking and payment transactions
- Materiality
- medium
Allowance for credit losses
Affects provision expense, reserve levels, and earnings volatility
Derivative and fair value accounting
Can create volatility in noninterest income
Goodwill impairment
Potential noncash impairment charges
Fair value of securities and financial instruments
Impacts capital, OCI, and valuation assumptions
Trust and investment fee valuation sensitivity
Revenue fluctuates with market performance
: 29/04/2026