QCR Holdings (QCRH) Stock Forecast & Price Target

QCR Hldgs is expected to continue to outperform with an above-average high-quality organic B/S growth outlook, a likely increase in NIM, and differentiation in LIHTC business. Strong operating leverage is predicted, with a forecasted PPNR of +8-10% for 2026/27 along with a 7% YoY operating expense growth, and a TCE building to 10.6%/11.5% by 4Q26/4Q27.

QCR Hldgs is a multi-bank holding company that operates in multiple segments, including commercial banking, wealth management, and others. While the company saw NII upside in the fourth quarter due to solid NIM expansion and balance sheet growth, the increasing borrowing costs and lower loan yields are concerning. The company's strong focus on LIHTC loans and potential M&A-related disruptions in Iowa could also impact their revenue and NIM going forward. Additionally, credit metrics improved in the fourth quarter, but the likelihood of future NCOs remains a concern.