QCR HOLDINGS, INC._June 30, 2026

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______to________

Commission file number 0-22208

QCR HOLDINGS, INC.

(Exact name of Registrant as specified in its charter)

Delaware	42-1397595
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3551 7^th Street, Moline, Illinois 61265

(Address of principal executive offices, including zip code)

(309) 736-3580

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $1.00 Par Value	QCRH	The Nasdaq Global Market

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☒	Accelerated filer ☐		Non-accelerated filer ☐
Smaller reporting company ☐		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date: As of July 31, 2026, the Registrant had outstanding 16,375,614 shares of common stock, $1.00 par value per share.

Table of Contents

QCR HOLDINGS, INC. AND SUBSIDIARIES

TABLE OF CONTENTS


				Page Number(s)
Part I		FINANCIAL INFORMATION

		Item 1	Consolidated Financial Statements (Unaudited)

			Consolidated Balance Sheets As of June 30, 2026 and December 31, 2025	4

			Consolidated Statements of Income For the Three Months Ended June 30, 2026 and 2025	5

			Consolidated Statements of Income For the Six Months Ended June 30, 2026 and 2025	6

			Consolidated Statements of Comprehensive Income For the Three and Six Months Ended June 30, 2026 and 2025	7

			Consolidated Statements of Changes in Stockholders' Equity For the Three and Six Months Ended June 30, 2026 and 2025	8

			Consolidated Statements of Cash Flows For the Three and Six Months Ended June 30, 2026 and 2025	9

			Notes to Consolidated Financial Statements	10

			Note 1. Summary of Significant Accounting Policies	10
			Note 2. Investment Securities	13
			Note 3. Loans/Leases Receivable	17
			Note 4. Securitizations and Variable Interest Entities	26
			Note 5. Derivatives and Hedging Activities	27
			Note 6. Income Taxes	30
			Note 7. Earnings Per Share	31
			Note 8. Fair Value	32
			Note 9. Business Segment Information	35
			Note 10. Regulatory Capital Requirements	37
			Note 11. Commitments	38
			Note 12. Legal Contingencies	38

		Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	40

			Introduction	40
			General	40
			Critical Accounting Policies and Critical Accounting Estimates	40
			Executive Overview	40
			Strategic Financial Metrics	42
			Strategic Developments	43
			GAAP to Non-GAAP Reconciliations	44
			Net Interest Income - (Tax Equivalent Basis)	46
			Results of Operations	50
			Interest Income	50
			Interest Expense	51
			Provision for Credit Losses	51

Table of Contents

			Noninterest Income	52
			Noninterest Expense	55
			Income Taxes	57
			Financial Condition	57
			Investment Securities	58
			Loans/Leases	58
			Allowance for Credit Losses on Loans/Leases and OBS Exposures	60
			Nonperforming Assets	62
			Deposits	63
			Borrowings	63
			Stockholders' Equity	65
			Liquidity and Capital Resources	65
			Special Note Concerning Forward-Looking Statements	67

	Item 3		Quantitative and Qualitative Disclosures About Market Risk	69

	Item 4		Controls and Procedures	71

Part II	OTHER INFORMATION

	Item 1		Legal Proceedings	72

	Item 1A		Risk Factors	72

	Item 2		Unregistered Sales of Equity Securities and Use of Proceeds	72

	Item 3		Defaults Upon Senior Securities	72

	Item 4		Mine Safety Disclosures	72

	Item 5		Other Information	72

	Item 6		Exhibits	73

Signatures				74

Throughout this Quarterly Report on Form 10-Q, we use certain acronyms and abbreviations, as defined in Note 1 to the Consolidated Financial Statements.

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QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of June 30, 2026 and December 31, 2025


	June 30,		December 31,
	2026		2025

	(dollars in thousands)
Assets
Cash and due from banks	$	111,342	$	76,494
Federal funds sold		19,700		23,150
Interest-bearing deposits at financial institutions		60,708		53,249

Securities held to maturity, at amortized cost (including securities pledged on other borrowings of $168,156 and $176,632, respectively, net of allowance for credit losses)		991,452		948,676
Securities available for sale, at fair value		293,989		279,777
Securities trading, at fair value		115,967		83,857
Total securities		1,401,408		1,312,310

Loans receivable held for sale		3,731		1,429
Loans/leases receivable held for investment		7,029,199		7,165,526
Gross loans/leases receivable		7,032,930		7,166,955
Less allowance for credit losses		(87,185)		(90,127)
Net loans/leases receivable		6,945,745		7,076,828

Bank-owned life insurance		114,563		112,937
Premises and equipment, net		236,130		215,411
Restricted investment securities		35,211		33,489
Other real estate owned, net		350		540
Goodwill		138,595		138,595
Intangibles		7,068		8,080
Derivatives		211,178		188,409
Other assets		238,645		258,702
Total assets	$	9,520,643	$	9,498,194

Liabilities and Stockholders' Equity
Liabilities:
Deposits:
Noninterest-bearing	$	1,024,247	$	950,977
Interest-bearing		6,393,087		6,463,221
Total deposits		7,417,334		7,414,198

Short-term borrowings		8,907		2,650
Federal Home Loan Bank advances		268,609		245,383
Other borrowings		99,430		107,395
Subordinated notes		234,312		234,122
Junior subordinated debentures		49,057		48,991
Derivatives		131,921		137,051
Other liabilities		161,316		196,093
Total liabilities		8,370,886		8,385,883


Stockholders' Equity:
Preferred stock, $1 par value; shares authorized 250,000 June 30, 2026 and December 31, 2025 - no shares issued or outstanding		—		—
Common stock, $1 par value; shares authorized 20,000,000 June 30, 2026 - 16,367,268 shares issued and outstanding December 31, 2025 - 16,690,603 shares issued and outstanding		16,367		16,691
Additional paid-in capital		367,018		372,851
Retained earnings		814,481		773,353
Accumulated other comprehensive loss:
Securities available for sale		(33,558)		(35,655)
Derivatives		(14,551)		(14,929)
Total stockholders' equity		1,149,757		1,112,311
Total liabilities and stockholders' equity	$	9,520,643	$	9,498,194

See Notes to Consolidated Financial Statements (Unaudited)

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QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended June 30, 2026 and 2025


		2026			2025

		(dollars in thousands, except share data)
Interest and dividend income:
Loans/leases, including fees:
Taxable		$	77,584		$	75,122
Nontaxable			24,520			27,747
Securities:
Taxable			4,755			4,805
Nontaxable			12,244			10,158
Interest-bearing deposits at financial institutions			1,353			1,634
Restricted investment securities			519			622
Federal funds sold			52			159
Total interest and dividend income			121,027			120,247

Interest expense:
Deposits			46,794			51,013
Short-term borrowings			31			15
Federal Home Loan Bank advances			1,383			2,853
Other borrowings			1,264			—
Subordinated notes			2,923			3,599
Junior subordinated debentures			716			685
Total interest expense			53,111			58,165
Net interest income			67,916			62,082
Provision for credit losses			4,708			4,043
Net interest income after provision for credit losses			63,208			58,039

Noninterest income:
Trust fees			4,281			3,395
Investment advisory and management fees			1,551			1,254
Deposit service fees			2,115			2,187
Gains on sales of residential real estate loans, net			507			556
Capital markets revenue			15,392			9,869
Earnings on bank-owned life insurance			1,025			998
Debit card fees			1,752			1,648
Correspondent banking fees			747			699
Loan related fee income			1,066			1,096
Fair value gain on derivatives and trading securities			802			230
Other			189			183
Total noninterest income			29,427			22,115

Noninterest expense:
Salaries and employee benefits			32,120			28,474
Occupancy and equipment expense			7,342			6,837
Professional and data processing fees			5,597			6,089
FDIC insurance, other insurance and regulatory fees			1,973			1,960
Loan/lease expense			291			407
Net cost of (income from) and losses/(gains) on operations of other real estate			(11)			50
Advertising and marketing			1,822			1,746
Communication and data connectivity			243			274
Supplies			265			252
Bank service charges			711			720
Correspondent banking expense			335			314
Intangibles amortization			506			661
Payment card processing			496			547
Trust expense			455			413
Other			1,012			839
Total noninterest expense			53,157			49,583
Net income before income taxes			39,478			30,571
Federal and state income tax expense			3,227			1,552
Net income		$	36,251		$	29,019

Basic earnings per common share		$	2.20		$	1.71
Diluted earnings per common share		$	2.19		$	1.71

Weighted average common shares outstanding			16,489,987			16,928,542
Weighted average common and common equivalent shares outstanding			16,569,815			17,006,282

Cash dividends declared per common share		$	0.10		$	0.06

See Notes to Consolidated Financial Statements (Unaudited)

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QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Six Months Ended June 30, 2026 and 2025


		2026			2025

		(dollars in thousands, except share data)
Interest and dividend income:
Loans/leases, including fees:
Taxable		$	154,241		$	149,210
Nontaxable			49,978			54,095
Securities:
Taxable			9,717			9,393
Nontaxable			23,312			19,370
Interest-bearing deposits at financial institutions			2,841			3,438
Restricted investment securities			904			1,156
Federal funds sold			125			258
Total interest and dividend income			241,118			236,920

Interest expense:
Deposits			92,349			101,400
Short-term borrowings			58			33
Federal Home Loan Bank advances			1,680			4,849
Other borrowings			2,431			—
Subordinated notes			7,843			7,201
Junior subordinated debentures			1,403			1,369
Total interest expense			105,764			114,852
Net interest income			135,354			122,068
Provision for credit losses			7,162			8,277
Net interest income after provision for credit losses			128,192			113,791

Noninterest income:
Trust fees			8,175			7,081
Investment advisory and management fees			3,090			2,508
Deposit service fees			4,088			4,370
Gains on sales of residential real estate loans, net			1,121			853
Capital markets revenue			26,093			16,385
Earnings on bank-owned life insurance			1,956			1,522
Debit card fees			3,411			3,136
Correspondent banking fees			1,440			1,313
Loan related fee income			2,016			1,994
Fair value loss on derivatives and trading securities			(67)			(777)
Other			1,056			622
Total noninterest income			52,379			39,007

Noninterest expense:
Salaries and employee benefits			63,509			55,838
Occupancy and equipment expense			14,821			13,292
Professional and data processing fees			10,759			11,233
FDIC insurance, other insurance and regulatory fees			4,045			3,930
Loan/lease expense			397			788
Net cost of and losses on operations of other real estate			5			41
Advertising and marketing			3,597			3,359
Communication and data connectivity			445			564
Supplies			498			459
Bank service charges			1,375			1,316
Correspondent banking expense			668			643
Intangibles amortization			1,012			1,322
Payment card processing			1,004			1,141
Trust expense			929			770
Other			2,218			1,426
Total noninterest expense			105,282			96,122
Net income before income taxes			75,289			56,676
Federal and state income tax expense			5,655			1,860
Net income		$	69,634		$	54,816

Basic earnings per common share		$	4.20		$	3.24
Diluted earnings per common share		$	4.18		$	3.22

Weighted average common shares outstanding			16,570,898			16,914,663
Weighted average common and common equivalent shares outstanding			16,655,678			17,010,136

Cash dividends declared per common share		$	0.20		$	0.12


See Notes to Consolidated Financial Statements (Unaudited)

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QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

For the Three and Six Months Ended June 30, 2026 and 2025


		Three Months Ended June 30,
		2026			2025

		(dollars in thousands)

Net income		$	36,251		$	29,019

Other comprehensive income (loss):

Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period before tax			5,901			(4,596)
			5,901			(4,596)

Unrealized gains (losses) on derivatives:
Unrealized holding gains (losses) arising during the period before tax			(174)			2,409
			(174)			2,409

Other comprehensive income (loss), before tax			5,727			(2,187)
Tax expense (benefit)			1,373			(516)
Other comprehensive income (loss), net of tax			4,354			(1,671)

Comprehensive income		$	40,605		$	27,348


		Six Months Ended June 30,
		2026			2025

		(dollars in thousands)

Net income		$	69,634		$	54,816

Other comprehensive income (loss):

Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period before tax			2,771			(7,897)
			2,771			(7,897)
Unrealized gains (losses) on derivatives:
Unrealized holding gains (losses) arising during the period before tax			458			6,277
			458			6,277

Other comprehensive income (loss), before tax			3,229			(1,620)
Tax expense (benefit)			754			(353)
Other comprehensive income (loss), net of tax			2,475			(1,267)

Comprehensive income		$	72,109		$	53,549

See Notes to Consolidated Financial Statements (Unaudited)

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QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)

For the Three and Six Months Ended June 30, 2026 and 2025


											Accumulated
					Additional						Other
		Common			Paid-In			Retained			Comprehensive
		Stock			Capital			Earnings			(Loss)			Total

		(dollars in thousands)

Balance December 31, 2025		$	16,691		$	372,851		$	773,353		$	(50,584)		$	1,112,311
Net income			—			—			33,383			—			33,383
Other comprehensive loss, net of tax			—			—			—			(1,879)			(1,879)
Common cash dividends declared, $0.10 per share			—			—			(1,674)			—			(1,674)
Repurchase and cancellation of 247,289 shares of common stock
as a result of a share repurchase program			(247)			(5,442)			(15,153)			—			(20,842)
Stock-based compensation expense			—			1,053			—			—			1,053
Issuance of common stock under employee benefit plans			52			60			—			—			112
Balance, March 31, 2026		$	16,496		$	368,522		$	789,909		$	(52,463)		$	1,122,464
Net income			—			—			36,251			—			36,251
Other comprehensive loss, net of tax			—			—			—			4,354			4,354
Repurchase and cancellation of 149,639 shares of common stock
as a result of a share repurchase program			(150)			(3,293)			(10,027)			—			(13,470)
Common cash dividends declared, $0.10 per share			—			—			(1,652)			—			(1,652)
Stock-based compensation expense			—			690			—			—			690
Issuance of common stock under employee benefit plans			21			1,099			—			—			1,120
Balance, June 30, 2026		$	16,367		$	367,018		$	814,481		$	(48,109)		$	1,149,757


											Accumulated
					Additional						Other
		Common			Paid-In			Retained			Comprehensive
		Stock			Capital			Earnings			Income/(Loss)			Total

		(dollars in thousands)

Balance December 31, 2024		$	16,882		$	374,975		$	665,171		$	(59,641)		$	997,387
Net income			—			—			25,797			—			25,797
Other comprehensive income, net of tax			—			—			—			404			404
Common cash dividends declared, $0.06 per share			—			—			(1,015)			—			(1,015)
Stock-based compensation expense			—			1,299			—			—			1,299
Issuance of common stock under employee benefit plans			38			(1,163)			—			—			(1,125)
Balance, March 31, 2025		$	16,920		$	375,111		$	689,953		$	(59,237)		$	1,022,747
Net income			—			—			29,019			—			29,019
Other comprehensive loss, net of tax			—			—			—			(1,671)			(1,671)
Common cash dividends declared, $0.06 per share			—			—			(1,016)			—			(1,016)
Stock-based compensation expense			—			622			—			—			622
Issuance of common stock under employee benefit plans			15			838			—			—			853
Balance, June 30, 2025		$	16,935		$	376,571		$	717,956		$	(60,908)		$	1,050,554

See Notes to Consolidated Financial Statements (Unaudited)

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QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Six Months Ended June 30, 2026 and 2025


		2026			2025

		(dollars in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		$	69,634		$	54,816
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			4,974			4,515
Provision for credit losses			7,162			8,277
Stock-based compensation expense			1,743			1,920
Deferred compensation expense accrued			3,314			2,982
Gains on other real estate owned, net			—			(31)
Amortization of securities premiums/discounts, net			1,065			400
Fair value loss on derivatives and trading securities			67			777
Ineffectiveness on fair value hedges			7			16
Loans originated for sale			(46,141)			(39,310)
Proceeds on sales of loans			206,671			41,245
Gains on sales of residential real estate loans			(1,121)			(853)
Proceeds from loan securitizations			247,702			—
Net loss on loan securitizations			1,272			—
Net loss on LIHTC construction loan sales			287			—
Losses on sales and disposals of premises and equipment			1			—
Amortization of intangibles			1,012			1,322
Accretion of acquisition fair value adjustments, net			(920)			(268)
Increase in cash value of bank-owned life insurance			(1,858)			(1,522)
Gain on bank-owned life insurance proceeds			(98)			—
Increase (decrease) in other assets			19,258			(5,328)
Increase in other liabilities			(38,143)			(30,282)
Net cash provided by operating activities		$	475,888		$	38,676

CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease in federal funds sold			3,450			150
Net (increase) decrease in interest-bearing deposits at financial institutions			(32,847)			24,738
Proceeds from sales of other real estate owned			190			740
Activity in securities portfolio:
Purchases			(95,782)			(119,930)
Calls, maturities and redemptions			38,222			31,081
Paydowns			2,931			17,535
Activity in restricted investment securities:
Purchases			(3,866)			(64)
Redemptions			2,144			2,585
Proceeds from bank-owned life insurance			330			—
Net increase in loans/leases originated and held for investment			(318,786)			(149,755)
Purchase of premises and equipment			(25,694)			(27,135)
Net cash used in investing activities		$	(429,708)		$	(220,055)

CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposit accounts			3,136			257,166
Net increase (decrease) in short-term borrowings			6,257			(450)
Activity in Federal Home Loan Bank advances:
Term advances			226			—
Net change in short-term and overnight advances			23,000			(60,000)
Activity in other borrowings:
Repayments			(8,185)			—
Payment of cash dividends on common stock			(2,686)			(2,028)
Proceeds from issuance of common stock, net			1,232			(272)
Repurchase and cancellation of common stock			(34,312)			—
Net cash provided by (used in) financing activities		$	(11,332)		$	194,416

Net increase in cash and due from banks			34,848			13,037

Cash and due from banks, beginning			76,494			91,732
Cash and due from banks, ending		$	111,342		$	104,769


		2026			2025

		(dollars in thousands)
Supplemental disclosure of cash flow information, cash payments for:
Interest		$	108,150		$	116,887
Income/franchise taxes			2,827			249

Supplemental schedule of noncash investing activities:
Change in fair value of fair value hedges			2,075			(2,058)
Transfers of loans to other real estate owned			—			110
Transfer of loans to held for sale for securitizations in preparation			281,737			—
Transfer of loans to held for sale for LIHTC construction loan sale			161,711			—
Increase (decrease) in the fair value of back-to-back interest rate swap assets and liabilities			24,019			(60)
Dividends payable			1,652			1,016

See Notes to Consolidated Financial Statements (Unaudited)

Table of Contents

Part I

Item 1

QCR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2026

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation: The interim unaudited Consolidated Financial Statements contained herein should be read in conjunction with the audited Consolidated Financial Statements and accompanying notes to the Consolidated Financial Statements for the fiscal year ended December 31, 2025, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 27, 2026. Accordingly, footnote disclosures, which would substantially duplicate the disclosures contained in the audited Consolidated Financial Statements, have been omitted.

The financial information of the Company included herein has been prepared in accordance with GAAP for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. Any differences appearing between the numbers presented in financial statements and management's discussion and analysis are due to rounding. The results of the interim period ended June 30, 2026 are not necessarily indicative of the results expected for the year ending December 31, 2026, or for any other period.

The acronyms and abbreviations identified below are used throughout this Quarterly Report on Form 10-Q. It may be helpful to refer back to this page as you read this report.


ACL: Allowance for credit losses	GAAP: Generally Accepted Accounting Principles
AFS: Available for sale	GB: Guaranty Bank
Allowance: Allowance for credit losses	GFED: Guaranty Federal Bancshares, Inc.
AOCI: Accumulated other comprehensive income (loss)	HTM: Held to maturity
ASC: Accounting Standards Codification	ICS: Insured Cash Sweep
ASU: Accounting Standards Update	ISDA: International Swaps and Derivatives Association
BOLI: Bank-owned life insurance	LHFS: Loans held for sale
Caps: Interest rate cap derivatives	LIHTC: Low-income housing tax credit
CDARS: Certificate of Deposit Account Registry Service	m2: m2 Equipment Finance, LLC
CECL: Current Expected Credit Losses	NIM: Net interest margin
Community National: Community National Bancorporation	NPA: Nonperforming asset
Company: QCR Holdings, Inc.	NPL: Nonperforming loan
CRBT: Cedar Rapids Bank & Trust Company	OBS: Off-balance sheet
CRE: Commercial real estate	OREO: Other real estate owned
CSB: Community State Bank	PCAOB: Public Company Accounting Oversight Board
C&I: Commercial and industrial	Provision: Provision for credit losses
EBA: Excess balance account	QCBT: Quad City Bank & Trust Company
EPS: Earnings per share	ROAA: Return on average assets
Exchange Act: Securities Exchange Act of 1934, as	ROAE: Return on average equity
amended	SEC: Securities and Exchange Commission
FASB: Financial Accounting Standards Board	SOFR: Secured Overnight Financing Rate
FDIC: Federal Deposit Insurance Corporation	SPE: Special purpose entity
Federal Reserve: Board of Governors of the Federal	Swaption: Swap option
Reserve System	TA: Tangible assets
FHLB: Federal Home Loan Bank	TCE: Tangible common equity
FRB: Federal Reserve Bank of Chicago	TEY: Tax equivalent yield
FTEs: Full-time equivalents	VIE: Variable interest entities

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The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries which include the accounts of four commercial banks: QCBT, CRBT, CSB and GB. All four banks are state-chartered commercial banks and all are members of the Federal Reserve system. The Company has historically engaged in direct financing lease contracts through m2, a wholly owned subsidiary of QCBT. Since the third quarter of 2024, m2 has discontinued offering new loans and leases. Additionally, the Company also engages in wealth management services through its banking subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation.

Derivatives: During the first quarter of 2026, the Company elected to present certain derivative assets and liabilities on a net basis when such instruments are subject to a legally enforceable master netting arrangement and the company has the intent to settle on a net basis or simultaneously, in accordance with ASC 210-20 “Balance Sheet – Offsetting”. This election applies to all derivative instruments executed with the same counterparty under legally enforceable ISDA master netting arrangements and, where applicable, related cash collateral recognized under ASC 815. Certain derivative positions may remain presented on a gross basis even when subject to a master netting arrangement if they do not meet the balance sheet offsetting criteria as of the reporting date. Master netting arrangements give the Company the ability, in the event of default by the counterparty, to liquidate collateral and to offset receivables and payables with the same counterparty. This change affects the presentation of derivative assets and liabilities on the consolidated balance sheets but does not impact net income or total stockholders’ equity. The reclassification of prior-period amounts was made to conform with the current-period presentation, as the derivative instruments were subject to legally enforceable master netting arrangements in prior periods and no changes occurred to the underlying contractual rights.

Netting adjustments represent amounts recorded to convert derivative assets and derivative liabilities from a gross basis to a net basis in accordance with ASC 815, consistent with the balance sheet presentation. Cash collateral receivables and payables are included in balance sheet netting when they meet the criteria for offsetting under ASC 815-10-45-5A. The net basis represents the aggregate of our net exposure to each counterparty after considering the balance sheet netting adjustments and any cash collateral. The Company manages derivative exposure by monitoring the credit risk associated with each counterparty using counterparty-specific credit risk limits, using master netting arrangements and obtaining collateral.

The consolidated balance sheet as of December 31, 2025 presented herein reflects a reclassification of $77.3 million between assets and liabilities to match current period balance sheet presentation. See Note 5 of the Consolidated Financial Statements for additional information regarding the gross and net presentation of derivative instruments.

Reclassifications: Certain amounts in the prior year’s Consolidated Financial Statements have been reclassified, with no effect on net income or stockholders’ equity to conform with the current period presentation.

Recent accounting developments:

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” Under the standard, the accounting guidance enhances the transparency and decision usefulness of income tax disclosures. Investors, lenders, creditors and other allocators of capital information will be able to use the expanded disclosures to better assess how an entity’s operations and related tax risks and tax planning and operation opportunities affect its tax rate and prospects for future cash flows. The ASU is effective for public business entities for annual periods beginning after December 15, 2024. The standard was adopted for the year ending December 31, 2025, and newly required disclosures have been provided in Note 6 to the Consolidated Financial Statements. The ASU did not have a material impact on the Company’s financial statements.

In March 2024, the FASB issued ASU 2024-01, “Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards.” Under the standard, the accounting guidance improves GAAP by adding an illustrative example to demonstrate how an entity should apply the scope guidance of “Topic 718, Compensation - Stock Compensation” for profits interest and similar awards. The illustrative examples will benefit investors and other allocators of capital by providing them with more consistent information. The ASU is effective for public business entities for annual periods beginning after December 15, 2024, and interim periods within those annual periods. The standard was adopted on January 1, 2025 and did not have a significant impact on the Company’s financial statements.

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In November 2024, the FASB issued ASU 2024-03, “Disaggregation of Income Statement Expenses.” Under the standard, the accounting guidance improves disclosures about a public business entity’s expenses, and provides more detailed information about the types of expenses in commonly presented expense captions. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The standard is not expected to have a material impact on the Company’s financial statements; however, it will require expanded disaggregation of certain income statement expense captions in the notes to the financial statements in 2027.

In May 2025, the FASB issued ASU 2025-03, “Business Combinations (Topic 805) and Consolidated (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity.” Under the standard, the accounting guidance limits situations in which entities must identify the primary beneficiary as the accounting acquirer in certain business combinations and requires entities to consider the general factors in Topic 805 when a business combination involving a VIE is primarily effected through exchanging equity interests. The ASU is effective prospectively to annual and interim reporting periods after December 15, 2026. The standard is not expected to have a significant impact on the Company’s financial statements.

In September 2025, the FASB issued ASU 2025-06, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” Under the standard, the accounting guidance changes the cost capitalization threshold by eliminating accounting consideration of software project development stages; cost capitalization would begin when (1) management has authorized and committed to funding the project and (2) it is “probable” the project will be completed and the software used to perform its intended function; and enhancing the guidance around the probable-to-complete threshold. The standard also modifies the website development costs guidance. The ASU is effective for annual and interim reporting periods after December 15, 2027 and early adoption is permitted. The standard is not expected to have a significant impact on the Company’s financial statements.

In September 2025, the FASB issued ASU 2025-07, “Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract.” Under the standard, the accounting guidance refines the scope of Topic 815 (derivatives) by adding a scope exception from derivative accounting for contracts that (1) are not exchange traded and (2) have underlying variables based on operations or activities specific to one of the parties to the contract. The accounting guidance also clarifies that revenue guidance in Topic 606 applies initially to share-based noncash consideration received from a customer for the transfer of goods or services. The ASU is effective in interim and annual periods for fiscal years beginning after December 15, 2026 and may be applied either on a prospective or modified retrospective basis. Early adoption is permitted. The standard is not expected to have a significant impact on the Company’s financial statements.

In November 2025, the FASB issued ASU 2025-08, “Purchased Loans.” Under the standard, the accounting guidance expands the use of the gross-up method to certain acquired loans beyond purchased financial assets with credit deterioration (PCD assets). The ASU is effective for interim and annual and reporting periods in fiscal years beginning after December 15, 2026, and is applied on a prospective basis. Early adoption is permitted. The standard is not expected to have a significant impact on the Company’s financial statements.

In November 2025, the FASB issued ASU 2025-09, “Hedge Accounting Improvements.” Under the standard, the accounting guidance is intended to more closely align financial reporting with the economics of some of an entity’s risk management activities. The guidance is applied prospectively to all hedging relationships beginning on or after the date of adoption without dedesignation. The ASU is effective prospectively to annual and interim reporting periods after December 15, 2026. Early adoption is permitted. The standard is not expected to have a significant impact on the Company’s financial statements.

In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270): Narrow-Scope Improvements.” Under the standard, the accounting guidance clarifies the form and content choices for interim financial statements and accompanying notes, adds a comprehensive list of required interim disclosures, and introduces a disclosure principle that requires disclosure of events since the end of the previous annual reporting period that materially affect the entity. The guidance is not intended to significantly change interim reporting or expand or reduce interim disclosure requirements. The ASU is effective for interim reporting periods in fiscal years beginning after December 15, 2027. Early adoption is permitted. The standard is not expected to have a significant impact on the Company’s financial statements.

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In December 2025, the FASB issued ASU 2025-12, “Codification Improvements” Under the standard, the accounting guidance enhances the usability of the Codification by refining accounting guidance and streamlining its application through technical corrections, making standards more consistent and easier to interpret for preparers and users. The ASU is effective for annual and interim reporting periods beginning after December 15, 2026. The standard is not expected to have a significant impact on the Company’s financial statements.

NOTE 2– INVESTMENT SECURITIES

The amortized cost and fair value of investment securities as of June 30, 2026 and December 31, 2025 are summarized as follows:


					Allowance		Gross			Gross
		Amortized			for Credit		Unrealized			Unrealized			Fair
		Cost			(Losses)		Gains			(Losses)			Value

		(dollars in thousands)
June 30, 2026:
Securities HTM:
Municipal securities		$	960,475		$	(272)	$	25,085		$	(144,967)		$	840,321
Corporate securities			30,209			(9)		1,620			—			31,820
Other securities			1,050			(1)		—			(2)			1,047
		$	991,734		$	(282)	$	26,705		$	(144,969)		$	873,188

Securities AFS:
U.S. treasuries and govt. sponsored agency securities		$	15,725		$	—	$	2		$	(1,799)		$	13,928
Residential mortgage-backed and related securities			93,014			—		375			(4,874)			88,515
Municipal securities			203,187			—		13			(37,619)			165,581
Asset-backed securities			3,685			—		84			—			3,769
Corporate securities			22,582			—		119			(505)			22,196
		$	338,193		$	—	$	593		$	(44,797)		$	293,989


				Allowance		Gross			Gross
		Amortized		for Credit		Unrealized			Unrealized		Fair
		Cost		(Losses)		Gains			(Losses)		Value

		(dollars in thousands)
December 31, 2025:
Securities HTM:
Municipal securities		$	918,189	$	(272)	$	23,402		$	(117,074)	$	824,245
Corporate securities			29,719		(9)		2,660			—		32,370
Other securities			1,050		(1)		—			(1)		1,048
		$	948,958	$	(282)	$	26,062		$	(117,075)	$	857,663

Securities AFS:
U.S. treasuries and govt. sponsored agency securities		$	17,775	$	—	$	4		$	(1,755)	$	16,024
Residential mortgage-backed and related securities			72,951		—		151			(4,247)		68,855
Municipal securities			203,613		—		27			(40,555)		163,085
Asset-backed securities			4,345		—		94			—		4,439
Corporate securities			28,068		—		148			(842)		27,374
		$	326,752	$	—	$	424		$	(47,399)	$	279,777

The Company's HTM municipal securities consist largely of private issues of municipal debt. The large majority of the municipalities are located within the greater Midwest. The municipal debt investments are underwritten using specific guidelines with ongoing monitoring.

The Company's residential mortgage-backed and related securities portfolio consists entirely of government sponsored or government guaranteed securities. The Company has not invested in private mortgage-backed securities or pooled trust preferred securities.

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Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of June 30, 2026, and December 31, 2025, are summarized in the tables below. Securities AFS, for which an allowance for credit losses has been provided, are not included in these disclosures as there are no unrealized losses remaining after consideration of the ACL.


		Less than 12 Months						12 Months or More						Total
					Gross						Gross						Gross
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		Value			Losses			Value			Losses			Value			Losses

		(dollars in thousands)
June 30, 2026:
Securities HTM:
Municipal securities		$	111,482		$	(51,487)		$	281,630		$	(93,480)		$	393,112		$	(144,967)
Other securities			547			(2)			—			—			547			(2)
		$	112,029		$	(51,489)		$	281,630		$	(93,480)		$	393,659		$	(144,969)

Securities AFS:
U.S. treasuries and govt. sponsored agency securities		$	—		$	—		$	13,431		$	(1,799)		$	13,431		$	(1,799)
Residential mortgage-backed and related securities			39,274			(1,088)			30,442			(3,786)			69,716			(4,874)
Municipal securities			1,391			(5)			161,664			(37,614)			163,055			(37,619)
Corporate securities			2,145			(24)			15,234			(481)			17,379			(505)
		$	42,810		$	(1,117)		$	220,771		$	(43,680)		$	263,581		$	(44,797)


		Less than 12 Months						12 Months or More						Total
					Gross						Gross						Gross
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
		Value			Losses			Value			Losses			Value			Losses

		(dollars in thousands)
December 31, 2025:
Securities HTM:
Municipal securities		$	88,718		$	(52,445)		$	316,672		$	(64,629)		$	405,390		$	(117,074)
Other securities			549			(1)			—			—			549			(1)
		$	89,267		$	(52,446)		$	316,672		$	(64,629)		$	405,939		$	(117,075)

Securities AFS:
U.S. treasuries and govt. sponsored agency securities		$	48		$	(1)		$	13,663		$	(1,754)		$	13,711		$	(1,755)
Residential mortgage-backed and related securities			16,167			(592)			32,137			(3,655)			48,304			(4,247)
Municipal securities			636			(9)			159,146			(40,546)			159,782			(40,555)
Corporate securities			1,491			(25)			18,802			(817)			20,293			(842)
		$	18,342		$	(627)		$	223,748		$	(46,772)		$	242,090		$	(47,399)

As of June 30, 2026, the investment portfolio included 683 securities. Of this number, 518 securities were in an unrealized loss position. The aggregate losses of these securities totaled approximately 14.3% of the total amortized cost of the portfolio. Of these 518 securities, there were 438 securities that were in an unrealized loss position for twelve months or more. Management has concluded unrealized losses as of June 30, 2026 were temporary due to the changing interest rate environment.

There was no allowance for credit losses for available for sale securities for each of the three and six months ended June 30, 2026 and 2025. The following tables present the activity in the allowance for credit losses for held to maturity securities by major security type for the three and six months ended June 30, 2026 and 2025:


		Three Months Ended
		June 30, 2026										June 30, 2025
		Securities HTM										Securities HTM
		Municipal			Corporate		Other					Municipal		Corporate		Other
		securities			securities		securities			Total		securities		securities		securities		Total

		(dollars in thousands)
Allowance for credit losses:
Beginning balance		$	272		$	9	$	1		$	282	$	254	$	8	$	1	$	263
Provision			—			—		—			—		—		—		—		—
Balance, ending		$	272		$	9	$	1		$	282	$	254	$	8	$	1	$	263


		Six Months Ended
		June 30, 2026										June 30, 2025
		Securities HTM										Securities HTM
		Municipal				Corporate	Other					Municipal		Other		Other
		securities				securities	securities			Total		securities		securities		securities		Total

		(dollars in thousands)
Allowance for credit losses:
Beginning balance		$	272			9	$	1		$	282	$	254	$	8	$	1	$	263
Provision for credit loss expense			—			—		—			—		—		—		—		—
Balance, ending		$	272			9	$	1		$	282	$	254	$	8	$	1	$	263

Trading securities had a fair value of $116.0 million as of June 30, 2026 and $83.9 million as of December 31, 2025 and consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company in prior years. The change in fair value on trading securities for the six months ended June 30, 2026 and 2025

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was a net loss of $45 thousand and $77 thousand, respectively. See also Note 4 to the Consolidated Financial Statements for details of these securitizations.

There were no transfers of securities between classifications during either the three or six months ended June 30, 2026 or 2025.

There were no sales of securities during either the three and six months ended June 30, 2026 or 2025.

The amortized cost and fair value of securities as of June 30, 2026 by contractual maturity are shown below. Expected maturities of residential mortgage-backed and related securities and asset-backed securities may differ from contractual maturities because the residential mortgages underlying the securities may be prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following table:


		Amortized Cost			Fair Value

		(dollars in thousands)
Securities HTM:
Due in one year or less		$	565		$	564
Due after one year through five years			48,500			48,064
Due after five years			942,669			824,560
		$	991,734		$	873,188
Securities AFS:
Due in one year or less		$	380		$	379
Due after one year through five years			15,832			15,298
Due after five years			225,282			186,028
			241,494			201,705
Residential mortgage-backed and related securities			93,014			88,515
Asset-backed securities			3,685			3,769
		$	338,193		$	293,989

Portions of the U.S. government sponsored agency securities and municipal securities contain call options, which, at the discretion of the issuer, terminate the security at par and at predetermined dates prior to the stated maturity, summarized as follows as of June 30, 2026:


		Amortized Cost			Fair Value

		(dollars in thousands)
Securities HTM:
Municipal securities		$	30,209		$	31,820
Corporate securities			199,660			190,255
		$	229,869		$	222,075

Securities AFS:
Municipal securities		$	202,664		$	165,067
Corporate securities			21,121			20,726
		$	223,785		$	185,793

As of June 30, 2026, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 80 issuers with fair values totaling $106.5 million and revenue bonds, issued by 160 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $898.6 million. The Company also held investments in general obligation bonds in 18 states, including nine states in which the aggregate fair value exceeded $5.0 million, and in revenue bonds in 31 states, including 14 states in which the aggregate fair value exceeded $5.0 million.

As of December 31, 2025, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 80 issuers with fair values totaling $106.8 million and revenue bonds, issued by 164 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $879.6 million. The Company held investments in general obligation bonds in 18 states, including nine states in which the aggregate fair value exceeded $5.0 million, and in revenue bonds in 31 states, including 14 states in which the aggregate fair value exceeded $5.0 million.

The Company monitors the investments and concentration closely. Both general obligation and revenue bonds are diversified across many issuers. As of June 30, 2026 and December 31, 2025, the Company did not hold general obligation

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bonds of any single issuer, that in aggregate exceed 10% of the Company’s stockholders’ equity. Of the general obligation and revenue bonds in the Company's portfolio, the majority are unrated bonds that represent private issuances. All unrated bonds were underwritten according to the Company’s loan underwriting standards and have an average loan risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential municipal services such as water, sewer, education, and medical facilities.

The Company's municipal securities are owned by its four subsidiary banks, whose investment policies set forth limits for various subcategories within the municipal securities portfolio. The investments of each charter are monitored individually, and as of June 30, 2026, all were within policy limitations approved by the Company’s board of directors. Policy limits are calculated as a percentage of each charter's total risk-based capital.

As of June 30, 2026, the Company's standard monitoring of its municipal securities portfolio had not uncovered any facts or circumstances resulting in significantly different credit ratings than those assigned by a nationally recognized statistical rating organization, or in the case of unrated bonds, the rating assigned using the credit underwriting standards.

The following table summarizes the fair value of investment securities pledged and held under derivatives, public deposits, short-term borrowings and other borrowings as of June 30, 2026 and December 31, 2025:



	June 30. 2026		December 31, 2025

	(dollars in thousands)
Derivatives:
U.S. govt. sponsored agency securities	$	11,198	$	11,268
Residential mortgage-backed and related securities		45,561		36,565
Municipal securities		143,168		142,065
		199,927		189,898
Public deposits:
U.S. govt. sponsored agency securities		1,265		1,338
Residential mortgage-backed and related securities		1,784		1,985
		3,049		3,323
Other borrowings:
Municipal securities*		138,515		161,329
		138,515		161,329
Total investments pledged:
U.S. govt. sponsored agency securities		12,463		12,606
Residential mortgage-backed and related securities		47,345		38,550
Municipal securities		281,683		303,394
	$	341,491	$	354,550

* Municipal securities with an amortized cost of $168.2 million and $176.6 million were pledged on secured borrowings as of June 30, 2026 and December 31, 2025, respectively.

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NOTE 3 – LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of June 30, 2026 and December 31, 2025 is presented as follows:


		June 30, 2026		December 31, 2025

		(dollars in thousands)
C&I:
C&I - revolving		$	407,419	$	384,656
C&I - other *			1,209,913		1,318,866
			1,617,332		1,703,522

CRE - owner occupied			589,928		577,352
CRE - non-owner occupied			966,873		1,036,655
Construction and land development			1,205,553		1,308,422
Multi-family			1,871,240		1,769,331
Direct financing leases**			6,382		9,533
1-4 family real estate***			613,664		603,683
Consumer			161,958		158,457
			7,032,930		7,166,955
Allowance for credit losses			(87,185)		(90,127)
		$	6,945,745	$	7,076,828
Direct financing leases:
Net minimum lease payments to be received		$	6,808	$	10,076
Estimated unguaranteed residual values of leased assets			—		165
Unearned lease/residual income			(426)		(708)
			6,382		9,533
Less allowance for credit losses			(212)		(311)
		$	6,170	$	9,222

* Includes equipment financing agreements outstanding through m2, totaling $128.7 million and $178.1 million as of June 30, 2026 and December 31, 2025, respectively.

** Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors, which is combined with management's expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The majority of leases with residual values contain a lease options rider, which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal.

*** Includes residential real estate loans held for sale totaling $3.7 million and $1.4 million as of June 30, 2026 and December 31, 2025, respectively.

Accrued interest on loans, which is excluded from the amortized cost of loans, totaled $29.9 million and $32.8 million at June 30, 2026 and December 31, 2025, respectively, and was included in Other Assets on the consolidated balance sheets.

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The aging of the loan/lease portfolio by classes of loans/leases as of June 30, 2026 and December 31, 2025 is presented as follows and all loans held for sale are current:


		As of June 30, 2026
											Accruing Past
					30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases		Current			Past Due			Past Due			More			Loans/Leases			Total

		(dollars in thousands)
C&I:
C&I - revolving		$	406,582		$	—		$	15		$	—		$	822	$		407,419
C&I - other			1,182,150			3,096			1,055			1			23,611			1,209,913
CRE - owner occupied			587,351			380			—			—			2,197			589,928
CRE - non-owner occupied			963,856			—			—			—			3,017			966,873
Construction and land development			1,200,631			804			—			—			4,118			1,205,553
Multi-family			1,868,907			—			—			—			2,333			1,871,240
Direct financing leases			6,323			—			20			—			39			6,382
1-4 family real estate			608,946			—			1,997			—			2,721			613,664
Consumer			161,443			234			—			—			281			161,958
		$	6,986,189		$	4,514		$	3,087		$	1		$	39,139		$	7,032,930

As a percentage of total loan/lease portfolio			99.34	%		0.06	%		0.04	%		0.00	%		0.56	%		100.00	%


		As of December 31, 2025
											Accruing Past
					30-59 Days			60-89 Days			Due 90 Days or			Nonaccrual
Classes of Loans/Leases		Current			Past Due			Past Due			More			Loans/Leases			Total

		(dollars in thousands)
C&I
C&I - revolving		$	363,820		$	19,972		$	—		$	—		$	864	$		384,656
C&I - other			1,284,558			3,755			1,915			3			28,635			1,318,866
CRE - owner occupied			575,669			1,277			—			—			406			577,352
CRE - non-owner occupied			1,033,991			—			—			—			2,664			1,036,655
Construction and land development			1,304,238			—			66			—			4,118			1,308,422
Multi-family			1,735,026			31,972			—			—			2,333			1,769,331
Direct financing leases			8,346			1,133			—			—			54			9,533
1-4 family real estate			597,924			2,760			192			82			2,725			603,683
Consumer			157,962			24			58			—			413			158,457
		$	7,061,534		$	60,893		$	2,231		$	85		$	42,212		$	7,166,955

As a percentage of total loan/lease portfolio			98.53	%		0.85	%		0.03	%		0.00	%		0.59	%		100.00	%

NPLs by classes of loans/leases as of June 30, 2026 and December 31, 2025 are presented as follows and all loans held for sale are performing and not included in this table:


		As of June 30, 2026
		Accruing Past			Nonaccrual			Nonaccrual
		Due 90 Days or			Loans/Leases			Loans/Leases						Percentage of
Classes of Loans/Leases		More			with an ACL			without an ACL			Total NPLs			Total NPLs

		(dollars in thousands)
C&I:
C&I - revolving		$	—		$	—		$	822		$	822		2	%
C&I - other			1			15,712			7,899			23,612		60
CRE - owner occupied			—			581			1,616			2,197		6
CRE - non-owner occupied			—			3,017			—			3,017		8
Construction and land development			—			4,118			—			4,118		10
Multi-family			—			2,333			—			2,333		6
Direct financing leases			—			39			—			39		-
1-4 family real estate			—			2,236			485			2,721		7
Consumer			—			281			—			281		1
		$	1		$	28,317		$	10,822		$	39,140		100	%

Table of Contents


		As of December 31, 2025
		Accruing Past			Nonaccrual			Nonaccrual
		Due 90 Days or			Loans/Leases			Loans/Leases						Percentage of
Classes of Loans/Leases		More			with an ACL			without an ACL			Total NPLs			Total NPLs

			(dollars in thousands)
C&I:
C&I - revolving		$	—		$	—		$	864		$	864		2	%
C&I - other			3			19,678			8,957			28,638		68
CRE - owner occupied			—			406			—			406		1
CRE - non-owner occupied			—			2,664			—			2,664		6
Construction and land development			—			4,118			—			4,118		10
Multi-family			—			2,333			—			2,333		5
Direct financing leases			—			54			—			54		0
1-4 family real estate			82			2,409			316			2,807		7
Consumer			—			413			—			413		1
		$	85		$	32,075		$	10,137		$	42,297		100	%

The Company did not recognize any interest income on nonaccrual loans during the three and six months ended June 30, 2026 or 2025.


		Three Months Ended June 30, 2026
						CRE		CRE		Construction				1-4
		C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
		Revolving		Other*		Occupied		Occupied		Development		Family		Real Estate			Consumer			Total

		(dollars in thousands)

Balance, beginning		$	3,726	$	23,007	$	6,519	$	11,725	$	15,415	$	17,908	$	5,415		$	1,744		$	85,459
Change in ACL for writedown of LHFS to fair value			—				—		—		—		374		—						374
Provision			204		1,661		5,856		(1,180)		(2,030)		549		(358)			(50)			4,652
Charge-offs			—		(3,563)		—		—		—		—		—			(10)			(3,573)
Recoveries			37		229		—		—		—		—		—			7			273
Balance, ending		$	3,967	$	21,334	$	12,375	$	10,545	$	13,385	$	18,831	$	5,057		$	1,691		$	87,185


		Six Months Ended June 30, 2026
						CRE		CRE		Construction				1-4
		C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
		Revolving		Other**		Occupied		Occupied		Development		Family		Real Estate			Consumer			Total

		(dollars in thousands)

Balance, beginning		$	3,747	$	27,684	$	6,324	$	11,457	$	15,397	$	18,860	$	4,986		$	1,672		$	90,127
Change in ACL for the transfer of loans to LHFS			—		—		—		—		—		(3,076)		—			—			(3,076)
Provision			147		980		5,964		(912)		(2,012)		3,047		80			46			7,340
Charge-offs			(3)		(7,964)		—		—		—		—		(9)			(44)			(8,020)
Recoveries			76		634		87		—		—		—		—			17			814
Balance, ending		$	3,967	$	21,334	$	12,375	$	10,545	$	13,385	$	18,831	$	5,057		$	1,691		$	87,185

* Included within the C&I – Other column are ACL on leases with a beginning balance of $263 thousand, negative provision of $46 thousand, charge-offs of $5 thousand and no recoveries. The ACL on leases was $212 thousand as of June 30, 2026.

** included within the C&I – Other column are ACL on leases with a beginning balance of $311 thousand, negative provision of $320 thousand, charge -offs of $5 thousand and recoveries of $226 thousand. The ACL on leases was $212 thousand as of June 30, 2026.

Table of Contents


		Three Months Ended June 30, 2025
						CRE		CRE		Construction				1-4
		C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
		Revolving		Other*		Occupied		Occupied		Development		Family		Real Estate		Consumer			Total

		(dollars in thousands)

Balance, beginning		$	3,952	$	31,845	$	7,141	$	11,061	$	16,760	$	12,968	$	5,095	$	1,532		$	90,354
Provision			(155)		3,972		(400)		(445)		1,161		574		(115)		75			4,667
Charge-offs			—		(6,470)		—		10		—		—		—		(30)			(6,490)
Recoveries			—		175		—		—		24		—		—		2			201
Balance, ending		$	3,797	$	29,522	$	6,741	$	10,626	$	17,945	$	13,542	$	4,980	$	1,579		$	88,732


		Six Months Ended June 30, 2025
						CRE		CRE		Construction				1-4
		C&I -		C&I -		Owner		Non-Owner		and Land		Multi-		Family
		Revolving		Other**		Occupied		Occupied		Development		Family		Real Estate		Consumer		Total

		(dollars in thousands)

Balance, beginning		$	3,856	$	34,002	$	7,147	$	11,137	$	15,099	$	12,173	$	4,934	$	1,493	$	89,841
Provisions			(59)		6,071		(406)		(521)		2,763		1,369		72		121		9,410
Charge-offs			—		(11,348)		—		10		—		—		(26)		(70)		(11,434)
Recoveries			—		797		—		—		83		—		—		35		915
Balance, ending		$	3,797	$	29,522	$	6,741	$	10,626	$	17,945	$	13,542	$	4,980	$	1,579	$	88,732

* Included within the C&I – Other column are ACL on leases with a beginning balance of $485 thousand, negative provision of $33 thousand, charge-offs of $30 thousand and recoveries of $1 thousand. The ACL on leases was $423 thousand as of June 30, 2025.

** Included within the C&I – Other column are ACL on leases with a beginning balance of $580 thousand, provision of $54 thousand, charge-offs of $221 thousand and recoveries of $10 thousand. The ACL on leases was $423 thousand as of June 30, 2025.

The composition of the ACL on loans/leases held for investment by portfolio segment based on evaluation method as of June 30, 2026 and December 31, 2025 are as follows:


		As of June 30, 2026
		Amortized Cost of Loans Receivable							Allowance for Credit Losses
		Individually			Collectively				Individually			Collectively
		Evaluated for			Evaluated for				Evaluated for			Evaluated for
		Credit Losses			Credit Losses		Total		Credit Losses			Credit Losses		Total

		(dollars in thousands)
C&I :
C&I - revolving		$	6,334		$	401,085	$	407,419	$	247		$	3,720	$	3,967
C&I - other*			27,805			1,188,490		1,216,295		5,774			15,560		21,334
			34,139			1,589,575		1,623,714		6,021			19,280		25,301
CRE - owner occupied			25,780			564,148		589,928		7,601			4,774		12,375
CRE - non-owner occupied			3,406			963,467		966,873		1,711			8,834		10,545
Construction and land development			4,483			1,201,070		1,205,553		1,663			11,722		13,385
Multi-family			4,584			1,866,656		1,871,240		886			17,945		18,831
1-4 family real estate			3,225			606,708		609,933		296			4,761		5,057
Consumer			319			161,639		161,958		38			1,653		1,691
		$	75,936		$	6,953,263	$	7,029,199	$	18,216		$	68,969	$	87,185

* Included within the C&I – other category are leases individually evaluated of $39 thousand with a related allowance for credit losses of $12 thousand and leases collectively evaluated of $6.3 million with a related allowance for credit losses of $202 thousand as of June 30, 2026.

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		As of December 31, 2025
		Amortized Cost of Loans Receivable							Allowance for Credit Losses
		Individually			Collectively				Individually			Collectively
		Evaluated for			Evaluated for				Evaluated for			Evaluated for
		Credit Losses			Credit Losses		Total		Credit Losses			Credit Losses		Total

		(dollars in thousands)
C&I :
C&I - revolving		$	5,726		$	378,930	$	384,656	$	39		$	3,708	$	3,747
C&I - other*			30,579			1,297,820		1,328,399		6,566			21,118		27,684
			36,305			1,676,750		1,713,055		6,605			24,826		31,431
CRE - owner occupied			23,711			553,641		577,352		1,464			4,860		6,324
CRE - non-owner occupied			3,419			1,033,236		1,036,655		1,642			9,815		11,457
Construction and land development			4,485			1,303,937		1,308,422		1,664			13,733		15,397
Multi-family			4,619			1,764,712		1,769,331		429			18,431		18,860
1-4 family real estate			1,966			600,288		602,254		300			4,686		4,986
Consumer			454			158,003		158,457		50			1,622		1,672
		$	74,959		$	7,090,567	$	7,165,526	$	12,154		$	77,973	$	90,127

* Included within the C&I – other category are leases individually evaluated of $54 thousand with a related allowance for credit losses of $16 thousand and leases collectively evaluated of $9.5 million with a related allowance for credit losses of $295 thousand as of December 31, 2025.

The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses as of June 30, 2026 and December 31, 2025:



		As of June 30, 2026
								Non
		Commercial			Owner-occupied			Owner-Occupied		Owner Occupied
		Assets			CRE			Real Estate		Real Estate		Securities		Equipment		Other		Total

		(dollars in thousands)
C & I:
C&I - revolving		$	6,237		$	—		$	97	$	—	$	—	$	—	$	—	$	6,334
C&I - other*			8,239			945			139		—		4,760		6,301		7,421		27,805
			14,476			945			236		—		4,760		6,301		7,421		34,139
CRE - owner occupied			—			25,150			—		630		—		—		—		25,780
CRE - non-owner occupied			—			—			3,406		—		—		—		—		3,406
Construction and land development			—			—			4,483		—		—		—		—		4,483
Multi-family			—			—			4,584		—		—		—		—		4,584
1-4 family real estate			—			—			343		2,882		—		—		—		3,225
Consumer			—			—			—		280		—		—		39		319
		$	14,476		$	26,095		$	13,052	$	3,792	$	4,760	$	6,301	$	7,460	$	75,936

* Included within the C&I – other category are leases individually evaluated of $39 thousand with primary collateral of equipment.


		As of December 31, 2025
								Non
		Commercial			Owner-occupied			Owner-Occupied		Owner Occupied
		Assets			CRE			Real Estate		Real Estate		Securities		Equipment		Other		Total

		(dollars in thousands)
C & I:
C&I - revolving		$	5,487		$	—		$	239	$	—	$	—	$	—	$	—	$	5,726
C&I - other*			7,001			—			—		—		4,760		7,610		11,208		30,579
			12,488			—			239		—		4,760		7,610		11,208		36,305
CRE - owner occupied			—			23,065			—		646		—		—		—		23,711
CRE - non-owner occupied			—			—			3,419		—		—		—		—		3,419
Construction and land development			—			—			4,485		—		—		—		—		4,485
Multi-family			—			—			4,619		—		—		—		—		4,619
1-4 family real estate			—			—			37		3,358		—		—		—		3,395
Consumer			—			—			—		444		—		—		10		454
		$	12,488		$	23,065		$	12,799	$	4,448	$	4,760	$	7,610	$	11,218	$	76,388

* Included within the C&I – other category are leases individually evaluated of $54 thousand with primary collateral of equipment.

For all loans except direct financing leases and equipment financing agreements, the Company’s credit quality indicator consists of internally assigned risk ratings. Each such loan is assigned a risk rating upon origination. The risk rating is reviewed every 15 months, at a minimum, and on an as-needed basis depending on the specific circumstances of the loan.

Table of Contents

For certain C&I loans (including equipment financing agreements and direct financing leases), the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system.

The following tables show the credit quality indicator of loans by class of receivable and year of origination as of June 30, 2026, and all loans held for sale are included in the pass rated line:


		As of June 30, 2026
		Term Loans
		Amortized Cost Basis by Origination Year
																		Revolving
																		Loans
Internally Assigned																		Amortized
Risk Rating		2026			2025			2024			2023			2022		Prior		Cost Basis		Total

		(dollars in thousands)
C&I - revolving
Pass		$	—		$	—		$	—		$	—		$	—	$	—	$	375,549	$	375,549
Special Mention			—			—			—			—			—		—		25,585		25,585
Substandard			—			—			—			—			—		—		6,285		6,285
Doubtful			—			—			—			—			—		—		—		—
Total C&I - revolving		$	—		$	—		$	—		$	—		$	—	$	—	$	407,419	$	407,419

C&I - other
Pass		$	245,027		$	236,278		$	99,778		$	194,471		$	114,183	$	152,573	$	—	$	1,042,310
Special Mention			10,466			3,648			1,208			122			496		2,476		—		18,416
Substandard			2,412			5,181			6,771			307			794		5,040		—		20,505
Doubtful			—			—			—			—			—		—		—		—
Total C&I - other		$	257,905		$	245,107		$	107,757		$	194,900		$	115,473	$	160,089	$	—	$	1,081,231

CRE - owner occupied
Pass		$	88,973		$	96,044		$	53,119		$	74,881		$	74,901	$	154,848	$	10,728	$	553,494
Special Mention			8,191			—			—			169			385		5,703		—		14,448
Substandard			747			1,403			—			433			2,100		17,303		—		21,986
Doubtful			—			—			—			—			—		—		—		—
Total CRE - owner occupied		$	97,911		$	97,447		$	53,119		$	75,483		$	77,386	$	177,854	$	10,728	$	589,928

CRE - non-owner occupied
Pass		$	97,633		$	228,518		$	122,641		$	105,044		$	186,141	$	168,523	$	46,070	$	954,570
Special Mention			2,357			34			993			—			5,304		209		—		8,897
Substandard			—			77			—			2,664			312		353		—		3,406
Doubtful			—			—			—			—			—		—		—		—
Total CRE - non-owner occupied		$	99,990		$	228,629		$	123,634		$	107,708		$	191,757	$	169,085	$	46,070	$	966,873

Construction and land development
Pass		$	208,094		$	415,189		$	229,278		$	268,594		$	44,896	$	4,419	$	30,787	$	1,201,257
Special Mention			67			—			20			—			—		—		—		87
Substandard			—			—			4,118			91			—		—		—		4,209
Doubtful			—			—			—			—			—		—		—		—
Total Construction and land development		$	208,161		$	415,189		$	233,416		$	268,685		$	44,896	$	4,419	$	30,787	$	1,205,553

Multi-family
Pass		$	162,228		$	434,456		$	236,248		$	223,322		$	318,222	$	491,182	$	998	$	1,866,656
Special Mention			—			—			—			—			—		—		—		—
Substandard			2,244			2,333			—			—			—		7		—		4,584
Doubtful			—			—			—			—			—		—		—		—
Total Multi-family		$	164,472		$	436,789		$	236,248		$	223,322		$	318,222	$	491,189	$	998	$	1,871,240

1-4 family real estate
Pass		$	88,163		$	106,900		$	81,350		$	79,575		$	66,697	$	180,635	$	4,909	$	608,229
Special Mention			47			1,535			—			—			156		472		—		2,210
Substandard			—			—			406			683			378		1,731		27		3,225
Doubtful			—			—			—			—			—		—		—		—
Total 1-4 family real estate		$	88,210		$	108,435		$	81,756		$	80,258		$	67,231	$	182,838	$	4,936	$	613,664

Consumer
Pass		$	6,828		$	10,206		$	3,221		$	3,071		$	2,014	$	1,449	$	134,787	$	161,576
Special Mention			—			—			—			—			—		—		63		63
Substandard			—			9			20			71			166		—		53		319
Doubtful			—			—			—			—			—		—		—		—
Total Consumer		$	6,828		$	10,215		$	3,241		$	3,142		$	2,180	$	1,449	$	134,903	$	161,958

Total		$	923,477		$	1,541,811		$	839,171		$	953,498		$	817,145	$	1,186,923	$	635,841	$	6,897,866

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	As of June 30, 2026
	Term Loans
	Amortized Cost Basis by Origination Year												Revolving
													Loans
													Amortized
Delinquency Status *	2026		2025		2024		2023		2022		Prior		Cost Basis		Total

	(dollars in thousands)
C&I - other
Performing	$	—	$	—	$	59,859	$	42,565	$	17,469	$	2,773	$	—	$	122,666
Nonperforming		—		—		926		3,127		1,475		488		—		6,016
Total C&I - other	$	—	$	—	$	60,785	$	45,692	$	18,944	$	3,261	$	—	$	128,682

Direct financing leases
Performing	$	—	$	80	$	746	$	3,311	$	2,088	$	118	$	—	$	6,343
Nonperforming		—		—		—		—		38		1		—		39
Total Direct financing leases	$	—	$	80	$	746	$	3,311	$	2,126	$	119	$	—	$	6,382

Total	$	—	$	80	$	61,531	$	49,003	$	21,070	$	3,380	$	—	$	135,064

* Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due.

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The following tables show the credit quality indicator of loans by class of receivable and year of origination as of December 31, 2025, and all loans held for sale are included in the pass rated line:


		As of December 31, 2025
		Term Loans
		Amortized Cost Basis by Origination Year
																		Revolving
																		Loans
Internally Assigned																		Amortized
Risk Rating		2025			2024			2023			2022			2021		Prior		Cost Basis		Total

		(dollars in thousands)
C&I - revolving
Pass		$	—		$	—		$	—		$	—		$	—	$	—	$	352,945	$	352,945
Special Mention			—			—			—			—			—		—		25,985		25,985
Substandard			—			—			—			—			—		—		5,726		5,726
Doubtful			—			—			—			—			—		—		—		—
Total C&I - revolving		$	—		$	—		$	—		$	—		$	—	$	—	$	384,656	$	384,656

C&I - other
Pass		$	300,721		$	171,903		$	288,321		$	144,943		$	61,157	$	137,083	$	—	$	1,104,128
Special Mention			6,659			1,881			351			1,552			2,285		1,385		—		14,113
Substandard			5,520			11,195			126			755			84		4,838		—		22,518
Doubtful			—			—			—			—			—		—		—		—
Total C&I - other		$	312,900		$	184,979		$	288,798		$	147,250		$	63,526	$	143,306	$	—	$	1,140,759

CRE - owner occupied
Pass		$	109,608		$	55,117		$	80,181		$	81,512		$	91,330	$	110,939	$	11,091	$	539,778
Special Mention			—			—			22			7,523			8,280		1,864		—		17,689
Substandard			1,222			—			111			825			696		17,031		—		19,885
Doubtful			—			—			—			—			—		—		—		—
Total CRE - owner occupied		$	110,830		$	55,117		$	80,314		$	89,860		$	100,306	$	129,834	$	11,091	$	577,352

CRE - non-owner occupied
Pass		$	281,076		$	126,112		$	152,953		$	210,062		$	129,932	$	75,744	$	42,996	$	1,018,875
Special Mention			5,173			1,006			201			5,380			2,387		214		—		14,361
Substandard			78			—			2,664			319			—		358		—		3,419
Doubtful			—			—			—			—			—		—		—		—
Total CRE - non-owner occupied		$	286,327		$	127,118		$	155,818		$	215,761		$	132,319	$	76,316	$	42,996	$	1,036,655

Construction and land development
Pass		$	365,346		$	409,811		$	350,290		$	95,684		$	44,865	$	255	$	37,801	$	1,304,052
Special Mention			—			90			—			—			70		—		—		160
Substandard			—			4,118			92			—			—		—		—		4,210
Doubtful			—			—			—			—			—		—		—		—
Total Construction and land development		$	365,346		$	414,019		$	350,382		$	95,684		$	44,935	$	255	$	37,801	$	1,308,422

Multi-family
Pass		$	500,378		$	145,022		$	225,730		$	350,851		$	187,331	$	355,047	$	354	$	1,764,713
Special Mention			—			—			—			—			—		—		—		—
Substandard			2,333			—			—			—			12		2,273		—		4,618
Doubtful			—			—			—			—			—		—		—		—
Total Multi-family		$	502,711		$	145,022		$	225,730		$	350,851		$	187,343	$	357,320	$	354	$	1,769,331

1-4 family real estate
Pass		$	135,947		$	90,638		$	88,216		$	70,462		$	96,075	$	110,623	$	6,017	$	597,978
Special Mention			1,507			—			354			—			526		6		—		2,393
Substandard			—			286			281			617			636		1,492		—		3,312
Doubtful			—			—			—			—			—		—		—		—
Total 1-4 family real estate		$	137,454		$	90,924		$	88,851		$	71,079		$	97,237	$	112,121	$	6,017	$	603,683

Consumer
Pass		$	15,483		$	4,161		$	3,964		$	2,870		$	698	$	1,426	$	129,337	$	157,939
Special Mention			—			—			—			—			—		—		64		64
Substandard			—			—			220			174			—		—		60		454
Doubtful			—			—			—			—			—		—		—		—
Total Consumer		$	15,483		$	4,161		$	4,184		$	3,044		$	698	$	1,426	$	129,461	$	158,457

Total		$	1,731,051		$	1,021,340		$	1,194,077		$	973,529		$	626,364	$	820,578	$	612,376	$	6,979,315

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		As of December 31, 2025
		Term Loans
		Amortized Cost Basis by Origination Year																	Revolving
																			Loans
																			Amortized
Delinquency Status *		2025		2024			2023			2022			2021			Prior			Cost Basis			Total

		(dollars in thousands)
C&I - other
Performing		$	1,001	$	74,605		$	60,869		$	27,697		$	5,885		$	628		$	—		$	170,685
Nonperforming			—		1,135			3,308			2,161			764			54			—			7,422
Total C&I - other		$	1,001	$	75,740		$	64,177		$	29,858		$	6,649		$	682		$	—		$	178,107

Direct financing leases
Performing		$	203	$	665		$	4,883		$	3,043		$	557		$	128		$	—		$	9,479
Nonperforming			—		—			—			49			5			—			—			54
Total Direct financing leases		$	203	$	665		$	4,883		$	3,092		$	562		$	128		$	—		$	9,533

Total		$	1,204	$	76,405		$	69,060		$	32,950		$	7,211		$	810		$	—		$	187,640

* Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due.

The following table shows the gross charge-offs of loans and leases by class of receivable and year of origination for the three and six months ended June 30, 2026 and 2025:


		Three Months Ended June 30, 2026																		Six Months Ended June 30, 2026
		Gross Charge-off by Origination Year																		Gross Charge-off by Origination Year
Classes of Loans/Leases		2026			2025			2024			2023			2022		Prior		Total		2025			2024			2023			2022			2021		Prior		Total

		(dollars in thousands)																		(dollars in thousands)
C&I:
C&I - revolving		$	—		$	—		$	—		$	—		$	—	$	—	$	—	$	3		$	—		$	—		$	—		$	—	$	—	$	3
C&I - other			4			—			2,762			563			215		14		3,558		27			—			5,216			1,775			817		124		7,959
CRE - owner occupied			—			—			—			—			—		—		—		—			—			—			—			—		—		—
CRE - non-owner occupied			—			—			—			—			—		—		—		—			—			—			—			—		—		—
Construction and land development			—			—			—			—			—		—		—		—			—			—			—			—		—		—
Multi-family			—			—			—			—			—		—		—		—			—			—			—			—		—		—
Direct financing leases			—			—			—			—			—		5		5		—			—			—			—			—		5		5
1-4 family real estate			—			—			—			—			—		—		—		—			—			—			—			—		9		9
Consumer			—			—			1			—			9		—		10		—			—			17			18			9		—		44
		$	4		$	—		$	2,763		$	563		$	224	$	19	$	3,573	$	30		$	—		$	5,233		$	1,793		$	826	$	138	$	8,020


		Three Months Ended June 30, 2025																		Six Months Ended June 30, 2025
		Gross Charge-off by Origination Year																		Gross Charge-off by Origination Year
Classes of Loans/Leases		2025			2024			2023			2022			2021		Prior		Total		2023			2022			2021			2020			2019		Prior		Total

		(dollars in thousands)																		(dollars in thousands)
C&I:
C&I - revolving		$	—		$	—		$	—		$	—		$	—	$	—	$	—	$	—		$	—		$	—		$	—		$	—	$	—	$	—
C&I - other			500			2,010			1,431			2,064			435		—		6,440		500			3,367			2,671			3,728			751		110		11,127
CRE - owner occupied			—			—			—			—			—		—		—		—			—			—			—			—		—		—
CRE - non-owner occupied			—			—			—			—			—		(10)		(10)		—			—			—			—			—		(10)		(10)
Construction and land development			—			—			—			—			—		—		—		—			—			—			—			—		—		—
Multi-family			—			—			—			—			—		—		—		—			—			—			—			—		—		—
Direct financing leases			—			—			—			30			—		—		30		—			136			39			40			—		6		221
1-4 family real estate			—			—			—			—			—		—		—		—			3			—			23			—		—		26
Consumer			—			13			17			—			—		—		30		—			13			57			—			—		—		70
		$	500		$	2,023		$	1,448		$	2,094		$	435	$	(10)	$	6,490	$	500		$	3,519		$	2,767		$	3,791		$	751	$	106	$	11,434

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Any loan and lease modifications to borrowers experiencing financial difficulty during 2025 and 2026 were deemed immaterial.

Changes in the ACL for OBS exposures for the three and six months ended June 30, 2026 and 2025 are presented as follows:


	Three Months Ended						Six Months Ended
	June 30, 2026			June 30, 2025			June 30, 2026			June 30, 2025

	(dollars in thousands)

Balance, beginning	$	6,904		$	7,764		$	7,138		$	8,273
Provisions (credited) to expense		56			(624)			(178)			(1,133)
Balance, ending	$	6,960		$	7,140		$	6,960		$	7,140

NOTE 4 – SECURITIZATIONS AND VARIABLE INTEREST ENTITIES

In prior years, the Company completed four Freddie Mac sponsored securitizations. The Company retained beneficial interests from each securitization which are classified as trading securities on the consolidated balance sheets. Details related to the prior securitizations and related VIEs can be found in Note 4 to the Consolidated Financial Statements included under Item 8 of Part I of the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

On April 30, 2026, the Company entered into an arrangement with Freddie Mac to securitize and sell $281.9 million of nontaxable LIHTC loans through Freddie Mac to investors. The Company retained beneficial interests totaling $32.8 million, which are classified as trading securities on the Company’s consolidated balance sheets. The transfer of these loans was accounted for as a sale for financial reporting purposes in accordance with ASC 860, and the resulting $1.3 million net loss on sale, which included the impact of the fair value of retained beneficial interests and transaction costs, was reported in capital markets revenue on the consolidated statements of income.

Two classes of M-Series certificates were issued in conjunction with the April 2026 securitization. Freddie Mac guarantees timely payment of interest and scheduled principal on M-Series Class A Certificates, which were sold to third-party investors through a Freddie Mac securitization special purpose entity. M-Series Class B Certificates are subordinated to M-Series Class A Certificates and were issued to the Company. M-Series Class B Certificates provide 10% first loss support to Freddie Mac on the M-Series Class A Certificates, or approximately $28.4 million of first loss support. The Company’s ongoing involvement in this transaction is limited to customary obligations of loan sales, including any indemnification for material breach in the Company’s representations.

As part of the April 2026 securitization transaction, the Company released all servicing obligations and rights to a third party, which included obligations to collect and remit payments of principal and interest, manage payments of taxes and insurance, and otherwise administer the underlying loans.

The VIE entity for 2026 M-Series securitization was assessed for potential consolidation under the VIE model that requires primary beneficiaries to consolidate the entity’s results. A primary beneficiary is defined as the party that has both the power to direct the activities that most significantly impact the entity, and an interest that could be significant to the entity. To determine if an interest could be significant to the entity, both qualitative and quantitative factors regarding the nature, size and form of involvement with the entity are evaluated. At June 30, 2026, the Company determined it was not the primary beneficiary of this VIE, primarily because the Company did not have the power to direct the activities that most significantly impact the VIE.

In August 2025, the Company securitized $200.3 million of HTM municipal securities. The securitization was comprised of Class A Certificates of $134.2 million and Class B Certificates of $66.1 million. The Class A Certificates were sold to third-party investors, and the Class B Certificates were retained by the Company. The Class B Certificates provide the first loss support and are subordinate to the Class A Certificates. In order to execute this transaction, the Company created a new bankruptcy-remote special purpose entity (a “Sponsor SPE”), through which the transaction was executed, and which is consolidated by the Company. Based on the structure of the transaction, the Company retains effective control of the HTM municipal securities and accounts for the transaction as a secured borrowing. The full amount of HTM municipal securities remain on the balance sheet denoted as collateralizing the borrowing and the Class A Certificates sold to third-party investors are accounted for as a secured term borrowing and classified with other borrowings on the Company’s

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consolidated balance sheet. No separate securitization SPE or other financing entity was created for this transaction, rather, a governmental entity securitized the securities and issued the certificates.

Evaluation and assessment of VIEs for consolidation is performed on an ongoing basis by management. Any changes in facts and circumstances occurring since the previous primary beneficiary determination will be considered as part of this ongoing assessment.

The Company’s total assets related to the consolidated sponsor VIEs related to securitizations to date as of June 30, 2026 and December 31, 2025 were $116.0 million and $83.9 million, respectively, which are included in trading securities on the consolidated balance sheets and there were no liabilities recorded. Of the $116.0 million reported as of June 30, 2026, $32.9 million related to the 2026 M-Series securitization. The Company’s maximum exposure to loss associated with the consolidated securitization VIEs consists of the capital invested plus any unfunded equity commitments that are binding. As of June 30, 2026, the Company’s maximum exposure to loss related to the VIEs was $113.9 million, of which $28.4 million related to the 2026 M-Series securitization.

NOTE 5 – DERIVATIVES AND HEDGING ACTIVITIES

Effective January 1, 2026, the Company elected to apply the master netting provisions under ASC 210-20 and ASC 815. See Note 1 to the Consolidated Financial Statements for additional information regarding this election.

Derivatives are summarized as follows as of June 30, 2026 and December 31, 2025:


	June 30, 2026						December 31, 2025
			Fair Value						Fair Value
		Notional or Contractual Amount		Derivative Assets		Derivative Liabilities		Notional or Contractual Amount		Derivative Assets		Derivative Liabilities

	(dollars in thousands)

Hedged derivatives
Cash flow hedges
Interest rate swaps	$	39,000	$	976	$	19,960	$	49,310	$	576	$	20,169
Interest rate collars		150,000		—		293		150,000		—		144

Fair value hedges
Interest rate swaps		250,000		—		112		310,000		—		2,186
	$	439,000		976		20,365	$	509,310	$	576	$	22,499
Unhedged derivatives
Swaptions	$	86,151	$	—	$	—	$	203,600	$	22	$	—
Interest rate swaps		6,355,877		215,847		215,847		5,954,979		191,828		191,828
	$	6,442,028	$	215,847	$	215,847	$	6,158,579	$	191,850	$	191,828

Total derivatives, gross			$	216,823	$	236,212			$	192,426	$	214,327
Netting adjustments				(5,645)		(5,645)				(4,017)		(4,017)
Cash collateral				—		(98,646)				—		(73,259)
Total derivatives, net			$	211,178	$	131,921			$	188,409	$	137,051

The Company uses interest rate swap, collar and swaption instruments to manage interest rate risk related to the variability of interest payments due to changes in interest rates.

Changes in fair values of derivative financial instruments accounted for as cash flow hedges, to the extent that they are included in the assessment of effectiveness, are recorded as a component of AOCI. Changes in fair values of derivative financial instruments accounted for as fair value hedges, to the extent that they are included in the assessment of effectiveness, are recorded as a component of interest income/expense.

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The Company has entered into interest rate swaps to hedge against the risk of rising rates on one of its variable rate subordinated notes and its variable rate trust preferred securities. All of the interest rate swaps are designated as cash flow hedges in accordance with ASC 815. The details of the interest rate swaps are as follows:


			Balance Sheet	Notional						Fair Value as of
Hedged Item	Effective Date	Maturity Date	Location	Amount		Receive Rate		Pay Rate		June 30, 2026		December 31, 2025
(dollars in thousands)

QCR Holdings Statutory Trust V	7/7/2018	7/7/2028	Derivatives - Assets	$	10,000	5.48	%	4.54	%	$	236	$	140
Community National Statutory Trust III	9/15/2018	9/15/2028	Derivatives - Assets		3,500	5.68	%	4.75	%		114		64
Guaranty Bankshares Statutory Trust I	9/15/2018	9/15/2028	Derivatives - Assets		4,500	5.68	%	4.75	%		88		50
Community National Statutory Trust II	9/20/2018	9/20/2028	Derivatives - Assets		3,000	6.13	%	5.17	%		76		43
QCR Holdings Statutory Trust II	9/30/2018	9/30/2028	Derivatives - Assets		10,000	6.84	%	5.85	%		256		144
QCR Holdings Statutory Trust III	9/30/2018	9/30/2028	Derivatives - Assets		8,000	6.84	%	5.85	%		206		115
Guaranty Statutory Trust II	5/23/2019	2/23/2026*	Derivatives - Assets		10,310	N/A	%	N/A	%		N/A		20
QCR Holdings Subordinated Note	3/1/2024	2/15/2028	Derivatives - Liabilities		65,000	4.02	%	4.02	%		(141)		(1,020)
				$	114,310					$	835	$	(444)

* Matured in first quarter of 2026.

The Company uses interest rate collars in an effort to manage future interest rate exposure on variable rate loans. The collar hedging strategy stabilizes interest rate fluctuations by setting both a floor and a cap. The collar is designated as a cash flow hedge in accordance with ASC 815. The details of the interest rate collar is as follows:

Balance Sheet

Fair Value as of

Hedged Item

Effective Date

Maturity Date

Location

Notional Amount

Cap Strike Rate

Floor Strike Rate

June 30, 2026

December 31, 2025

(dollars in thousands)

Loans

10/1/2022

10/1/2026

Derivatives - Assets (Liabilities)

50,000

4.40

2.44

(1)

The Company has executed a derivative strategy more commonly known as a swaption. The swaptions are designed to hedge the Company’s regulatory capital ratios against the adverse effects of a significant decline in long-term interest rates. The swaptions are designated as unhedged in accordance with ASC 815, therefore the change in fair value of the derivative instrument is recognized into current earnings. An initial premium of $4.5 million was paid upfront for the swaptions. The details of the swaptions are as follows:


		Balance Sheet					Fair Value as of
Effective Date	Maturity Date	Location	Notional Amount		Strike Rate		June 30, 2026		December 31, 2025
(dollars in thousands)

7/30/2024	1/29/2026*	Derivatives - Assets	$	20,750	2.63	%	$	N/A	$	-
7/30/2024	1/29/2026*	Derivatives - Assets		41,700	2.13	%		N/A		-
7/30/2024	1/30/2026*	Derivatives - Assets		36,546	2.14	%		N/A		-
7/30/2024	1/30/2026*	Derivatives - Assets		18,453	2.64	%		N/A		-
7/30/2024	7/30/2026	Derivatives - Assets		16,100	2.64	%		-		8
7/30/2024	7/30/2026	Derivatives - Assets		29,800	2.14	%		-		4
7/30/2024	7/30/2026	Derivatives - Assets		25,971	2.14	%		-		3
7/30/2024	7/30/2026	Derivatives - Assets		14,280	2.64	%		-		7
			$	203,600			$	-	$	22

* Matured in first quarter of 2026.

The Company has entered into interest rate swaps to hedge against the risk of declining interest rates on floating rate loans. The interest rate swaps are designated as cash flow hedges in accordance with ASC 815. The details of the interest rate swaps are as follows:


			Balance Sheet							Fair Value as of
Hedged Item	Effective Date	Maturity Date	Location	Notional Amount		Receive Rate		Pay Rate		June 30, 2026		December 31, 2025
(dollars in thousands)

Loans	7/1/2021	7/1/2031	Derivatives - Liabilities	$	35,000	1.40	%	3.75	%	$	(4,079)	$	(3,798)
Loans	7/1/2021	7/1/2031	Derivatives - Liabilities		50,000	1.40	%	3.75	%		(5,827)		(5,425)
Loans	7/1/2021	7/1/2031	Derivatives - Liabilities		40,000	1.40	%	3.75	%		(4,669)		(4,348)
Loans	10/1/2022	7/1/2031	Derivatives - Liabilities		25,000	1.30	%	3.62	%		(2,897)		(2,734)
Loans	4/1/2022	4/1/2027	Derivatives - Liabilities		15,000	1.91	%	3.75	%		(235)		(285)
Loans	4/1/2022	4/1/2027	Derivatives - Liabilities		50,000	1.91	%	3.75	%		(783)		(948)
Loans	4/1/2022	4/1/2027	Derivatives - Liabilities		35,000	1.91	%	3.75	%		(548)		(664)
Loans	4/1/2022	4/1/2027	Derivatives - Liabilities		50,000	1.91	%	3.75	%		(783)		(947)
				$	300,000					$	(19,821)	$	(19,149)

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The Company uses interest rate collars in an effort to manage future interest rate exposure on variable rate deposits. The collar hedging strategy stabilizes interest rate fluctuations by setting both a floor and a cap. The collars are designated as a cash flow hedge in accordance with ASC 815. The details of the interest rate collars are as follows:


			Balance Sheet							Fair Value as of
Hedged Item	Effective Date	Maturity Date	Location	Notional Amount		Cap Strike Rate		Floor Strike Rate		June 30, 2026		December 31, 2025
(dollars in thousands)

Deposits	5/1/2025	11/1/2027	Derivatives - Liabilities	$	50,000	4.40	%	2.24	%	$	(61)	$	(18)
Deposits	5/1/2025	5/1/2028	Derivatives - Liabilities		50,000	4.40	%	2.34	%		(101)		(53)
Deposits	5/1/2025	11/1/2028	Derivatives - Liabilities		50,000	4.40	%	2.43	%		(131)		(73)
				$	150,000					$	(293)	$	(144)

The Company has entered into interest rate swaps to hedge against the risk of rising rates on loans. The interest rate swaps are designated as fair value hedges in accordance with ASC 815. The details of the interest rate swaps are as follows:



			Balance Sheet							Fair Value as of
Hedged Item	Effective Date	Maturity Date	Location	Notional Amount		Receive Rate		Pay Rate		June 30, 2026		December 31, 2025
(dollars in thousands)

Loans	7/12/2023	2/1/2026*	Derivatives - Liabilities	$	25,000	4.21	%	4.38	%	$	N/A	$	(15)
Loans	7/12/2023	2/1/2026*	Derivatives - Liabilities		15,000	4.21	%	4.38	%		N/A		(9)
Loans	7/12/2023	2/1/2026*	Derivatives - Liabilities		20,000	4.21	%	4.38	%		N/A		(12)
Loans	7/12/2023	8/1/2026	Derivatives - Liabilities		30,000	3.63	%	4.21	%		(14)		(119)
Loans	7/12/2023	8/1/2026	Derivatives - Liabilities		15,000	3.63	%	4.21	%		(7)		(59)
Loans	7/12/2023	8/1/2026	Derivatives - Liabilities		20,000	3.63	%	4.21	%		(10)		(79)
Loans	7/12/2023	2/1/2027	Derivatives - Liabilities		32,500	3.63	%	4.08	%		(42)		(251)
Loans	7/12/2023	2/1/2027	Derivatives - Liabilities		15,000	3.63	%	4.08	%		(6)		(116)
Loans	7/12/2023	2/1/2027	Derivatives - Liabilities		20,000	3.63	%	4.08	%		(26)		(154)
Loans	7/12/2023	8/1/2027	Derivatives - Liabilities		32,500	3.63	%	3.98	%		(12)		(352)
Loans	7/12/2023	8/1/2027	Derivatives - Liabilities		15,000	3.63	%	3.98	%		11		(162)
Loans	7/12/2023	8/1/2027	Derivatives - Liabilities		25,000	3.63	%	3.98	%		(9)		(271)
Loans	7/12/2023	2/1/2028	Derivatives - Liabilities		30,000	3.63	%	3.90	%		22		(391)
Loans	7/12/2023	2/1/2028	Derivatives - Liabilities		15,000	3.63	%	3.90	%		(18)		(196)
				$	310,000					$	(111)	$	(2,186)

* Matured in first quarter of 2026.

The Company has also entered into interest rate swap contracts that are not designated as hedging instruments. These derivative contracts relate to transactions in which the Company enters into an interest rate swap with a customer while at the same time entering into an equal and offsetting interest rate swap with an upstream counterparty. Additionally, the Company receives an upfront, non-refundable fee from the upstream counterparty, dependent upon the pricing that is recognized upon receipt from the counterparty. Because the Company acts as an intermediary for the customer, changes in the fair value of the underlying derivative contracts, for the most part, offset each other and do not significantly impact the Company’s results of operations.

Interest rate swaps that were not designated as hedging instruments as of June 30, 2026 and December 31, 2025 are summarized as follows:


		As of June 30, 2026			As of December 31, 2025
	Notional Amount		Estimated Fair Value		Notional Amount		Estimated Fair Value

	(dollars in thousands)
Non-Hedging Interest Rate Derivatives Assets:
Interest rate swap contracts	$	6,355,877	$	215,847	$	5,954,979	$	191,828
Non-Hedging Interest Rate Derivatives Liabilities:
Interest rate swap contracts	$	6,355,877	$	215,847	$	5,954,979	$	191,828

The effect of cash flow hedging and fair value accounting on the consolidated statements of income for the three and six months ended June 30, 2026 and 2025 are as follows:


	Three Months Ended June 30, 2026				Three Months Ended June 30, 2025
	Interest and		Interest		Interest and		Interest
	Dividend Income		Expense		Dividend Income		Expense

	(dollars in thousands)
Income and expense line items presented in the consolidated statements of income	$	121,027	$	53,111	$	120,247	$	58,165

The effects of cash flow hedging:
Loss on interest rate swaps on debt		-		(89)		-		(210)
Loss on interest rate swaps and collars on loans		(1,716)		-		(2,109)		-

The effects of fair value hedging:
Gain (loss) on interest rate swaps on loans		(129)		-		165		-

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	Six Months Ended June 30, 2026				Six Months Ended June 30, 2025
	Interest and		Interest		Interest and		Interest
	Dividend Income		Expense		Dividend Income		Expense

	(dollars in thousands)

Income and expense line items presented in the consolidated statements of income	$	241,118	$	105,764	$	236,920	$	114,852

The effects of cash flow hedging:
Loss on interest rate caps and collars on deposits		-		-		-		(117)
Loss on interest rate swaps on debt		-		(202)		-		(419)
Loss on interest rate swaps and collars on loans		(3,448)		-		(4,192)		-

The effects of fair value hedging:
Gain (loss) on interest rate swaps on loans		(256)		-		335		-

The Company’s hedged interest rate swaps and non-hedged interest rate swaps are collateralized with cash and investment securities with carrying values as follows, as of the dates presented:


	June 30, 2026		December 31, 2025

	(dollars in thousands)

Cash	$	98,646	$	81,131
U.S. govt. sponsored agency securities		11,198		11,268
Municipal securities		143,168		142,065
Residential mortgage-backed and related securities		45,561		36,565
	$	298,573	$	271,029

The Company may be exposed to credit risk in the event of non-performance by the counterparties to its interest rate derivative agreements. The Company assesses the credit risk of its financial institution counterparties by monitoring publicly available credit ratings and financial information. Additionally, the Company manages financial institution counterparty credit risk by entering into interest rate derivatives only with primary and highly rated counterparties, and uses ISDA master agreements, central clearing mechanisms and counterparty limits. The agreements contain bilateral collateral agreements with the amount of collateral to be posted generally governed by the settlement value of outstanding swaps. The Company manages the risk of default by its borrower/customer counterparties through its normal loan underwriting and credit monitoring policies and procedures. The Company underwrites the combination of the base loan amount and potential swap exposure and focuses on high quality borrowers with strong collateral values. The majority of the Company’s swapped loan portfolio consists of loans on projects with loan-to-values, including the potential swap exposure, below 65%. The Company does not currently anticipate any losses from failure of interest rate derivative counterparties to honor their obligations.

NOTE 6 – INCOME TAXES

A reconciliation of the expected federal income tax expense to the income tax expense included in the consolidated statements of income is as follows for the three and six months ended June 30, 2026 and 2025:


		For the Three Months Ended June 30,										For the Six Months Ended June 30,
		2026					2025					2026					2025
					% of					% of					% of					% of
					Pretax					Pretax					Pretax					Pretax
		Amount			Income		Amount			Income		Amount			Income		Amount			Income

		(dollars in thousands)										(dollars in thousands)

U.S. federal statutory tax rate		$	8,291		21.0	%	$	6,420		21.0	%	$	15,811		21.0	%	$	11,902		21.0	%
State and local income taxes, net of federal income tax effect (*)			1,059		2.7			896		2.9			2,088		2.8			1,344		2.4
Tax credits
Low income housing tax credits			(1,017)		(2.6)			(822)		(2.7)			(2,038)		(2.7)			(1,512)		(2.7)
Other credits			(47)		(0.1)			60		0.2			(96)		(0.1)			(135)		(0.2)
Nontaxable or nondeductible items
Tax exempt income, net			(7,531)		(19.1)			(7,960)		(26.0)			(14,989)		(19.9)			(15,465)		(27.3)
Interest disallowance			2,805		7.2			3,327		10.9			5,721		7.6			6,442		11.4
Bank-owned life insurance			(234)		(0.6)			(210)		(0.7)			(410)		(0.5)			(320)		(0.6)
Meals and entertainment			38		0.1			25		0.1			65		—			46		—
Other			(273)		(0.7)			(149)		(0.5)			(403)		(0.5)			(291)		(0.5)
Changes in unrecognized tax benefits			204		0.5			—		—			369		0.4			—		—
Other adjustments
Excess tax benefit on stock options exercised and restricted stock awards vested			(101)		(0.3)			(37)		(0.1)			(685)		(0.9)			(527)		(0.9)
Provision adjustment			11		—			—		—			153		0.2			373		0.7
Other			22		0.1			2		—			69		0.1			3		—
Effective tax rate		$	3,227		8.2	%	$	1,552		5.1	%	$	5,655		7.5	%	$	1,860		3.3	%

* State taxes in Iowa made up the majority (greater than 50 percent) of the tax effect in this category.

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The effective tax rate for the first six months of 2026 was at 7.5%, up from 3.3% in the first six months of 2025. The increase was primarily due to an overall increase in pre-tax income.

The following table summarizes the impact to the Consolidated Statements of Income relative to the Company’s tax credit programs for which it has elected to apply the proportional amortization method of accounting:


	For the Three Months Ended				For the Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025

	(dollars in thousands)				(dollars in thousands)

Tax credits recognized	$	2,942	$	2,587	$	5,884	$	5,295
Other tax benefits recognized		435		492		862		988
Amortization		(2,247)		(2,191)		(4,480)		(4,384)
Net benefit included in income tax		1,130		888		2,266		1,899

Other income		—		—		—		—
Allocated income on investments		—		—		—		—
Net benefit included in noninterest income		—		—		—		—

Net benefit included in the Consolidated Statements of Income	$	1,130	$	888	$	2,266	$	1,899

The Company did not recognize impairment losses resulting from the forfeiture or ineligibility of income tax credits or other circumstances during the three and six months ending June 30, 2026 and 2025.

NOTE 7 - EARNINGS PER SHARE

The following information was used in the computation of EPS on a basic and diluted basis:


	Three months ended					Six months ended
	June 30,					June 30,
	2026			2025		2026			2025

	(dollars in thousands, except share data)

Net income	$	36,251		$	29,019	$	69,634		$	54,816

Basic EPS	$	2.20		$	1.71	$	4.20		$	3.24
Diluted EPS	$	2.19		$	1.71	$	4.18		$	3.22

Weighted average common shares outstanding		16,489,987			16,928,542		16,570,898			16,914,663
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan		79,828			77,740		84,780			95,473
Weighted average common and common equivalent shares outstanding		16,569,815			17,006,282		16,655,678			17,010,136

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NOTE 8 – FAIR VALUE

Accounting guidance on fair value measurement uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows:

●

Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in markets;

●

Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and

●

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Assets and liabilities measured at fair value on a recurring basis comprise the following at June 30, 2026 and December 31, 2025:


					Fair Value Measurements at Reporting Date Using
					Quoted Prices			Significant
					in Active			Other			Significant
					Markets for			Observable			Unobservable
					Identical Assets			Inputs			Inputs
		Fair Value			(Level 1)			(Level 2)			(Level 3)

		(dollars in thousands)
June 30, 2026:
Securities AFS:
U.S. treasuries and govt. sponsored agency securities		$	13,928		$	—		$	13,928		$	—
Residential mortgage-backed and related securities			88,515			—			88,515			—
Municipal securities			165,581			—			165,581			—
Asset-backed securities			3,769			—			3,769			—
Corporate securities			22,196			—			22,196			—
Securities trading			115,967			—			—			115,967
Derivatives			211,178			—			211,178			—
Total assets measured at fair value		$	621,134		$	—		$	505,167		$	115,967

Derivatives		$	131,921		$	—		$	131,921		$	—
Total liabilities measured at fair value		$	131,921		$	—		$	131,921		$	—


December 31, 2025:
Securities AFS:
U.S. treasuries and govt. sponsored agency securities		$	16,024		$	—		$	16,024		$	—
Residential mortgage-backed and related securities			68,855			—			68,855			—
Municipal securities			163,085			—			163,085			—
Asset-backed securities			4,439			—			4,439			—
Corporate securities			27,374			—			27,374			—
Securities trading			83,857			—			—			83,857
Derivatives			188,409			—			188,409			—
Total assets measured at fair value		$	552,043		$	—		$	468,186		$	83,857

Derivatives		$	137,051		$	—		$	137,051		$	—
Total liabilities measured at fair value		$	137,051		$	—		$	137,051		$	—

The securities AFS portfolio consists of securities whereby the Company obtains fair values from an independent pricing service. The fair values are determined by pricing models that consider observable market data, such as interest rate volatilities, SOFR yield curve, credit spreads and prices from market makers and live trading systems (Level 2 inputs).

Trading securities consist of retained beneficial interests from securitizations and are classified as a Level 3 in the fair value hierarchy. Fair values are estimated using the discounted cash flow method, including discount rates which are deemed to be significant unobservable inputs. As of June 30, 2026, the discount rates ranged from 3.15% to 6.88%.

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Changes in fair value of trading securities for the three and six months ended June 30, 2026 and 2025 are presented as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025

	(dollars in thousands)

Balance at the beginning of the period	$	82,728	$	82,445	$	83,857	$	83,529
Trading securities purchased		32,763		—		32,763		—
Paydowns		(44)		(40)		(88)		(81)
Premium amortization		(287)		(237)		(520)		(471)
Fair value gain (loss)		807		732		(45)		(77)
Balance at the end of the period	$	115,967	$	82,900	$	115,967	$	82,900

Interest rate caps, swaps, collars and swaptions are used for the purpose of hedging interest rate risk on various financial assets and liabilities, further described in Note 5 to the Consolidated Financial Statements. The fair values are determined by pricing models that consider observable market data for derivative instruments with similar structures (Level 2 inputs).

Certain financial assets are measured at fair value on a non-recurring basis; that is, the assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Assets measured at fair value on a non-recurring basis comprised the following at June 30, 2026 and December 31, 2025:


					Fair Value Measurements at Reporting Date Using
					Quoted Prices			Significant
					in Active			Other			Significant
					Markets for			Observable			Unobservable
					Identical Assets			Inputs			Inputs
		Fair Value			Level 1			Level 2			Level 3

		(dollars in thousands)

June 30, 2026:
Loans/leases evaluated individually		$	43,300		$	—		$	—		$	43,300
OREO			378			—			—			378
		$	43,678		$	—		$	—		$	43,678

December 31, 2025:
Loans/leases evaluated individually		$	47,183		$	—		$	—		$	47,183
OREO			583			—			—			583
		$	47,766		$	—		$	—		$	47,766

Loans/leases evaluated individually are valued at the lower of cost or fair value and are classified as Level 3 in the fair value hierarchy. Fair value is measured based on the value of the collateral securing these loans/leases. Collateral may be comprised of real estate and/or business assets, including equipment, inventory and/or accounts receivable, and is determined based on appraisals by qualified licensed appraisers hired by the Company. Appraised and reported values are discounted based on management's historical knowledge, changes in market conditions from the time of valuation, and/or management's expertise and knowledge of the client and client's business.

OREO in the table above consists of property acquired through foreclosures and settlement of loans. Property acquired is carried at the estimated fair value of the property, less disposal costs, and is classified as a Level 3 in the fair value hierarchy. The estimated fair value of the property acquired is generally determined based on appraisals by qualified licensed appraisers hired by the Company. Appraised and reported values are discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the property.

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The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value:


	Quantitative Information about Level Fair Value Measurements
	Fair Value		Fair Value
	June 30,		December 31,
	2026		2025		Valuation Technique	Unobservable Input	Range

	(dollars in thousands)

Loans/leases evaluated individually	$	43,300	$	47,183	Appraisal of collateral	Appraisal adjustments	-10.00	%	to	-30.00	%
OREO		378		583	Appraisal of collateral	Appraisal adjustments	0.00	%	to	-35.00	%

For the loans/leases evaluated individually and OREO, the Company records carrying value at fair value less disposal or selling costs. The amounts reported in the tables above are fair values before the adjustment for disposal or selling costs.

There have been no changes in the valuation techniques used for any assets or liabilities measured at fair value during the three or six months ended June 30, 2026 and 2025.

The following table presents the carrying values and estimated fair values of financial assets and liabilities carried on the Company's consolidated balance sheets, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis:


		Fair Value		As of June 30, 2026						As of December 31, 2025
		Hierarchy		Carrying			Estimated			Carrying			Estimated
		Level		Value			Fair Value			Value			Fair Value

				(dollars in thousands)

Cash and due from banks		Level 1		$	111,342		$	111,342		$	76,494		$	76,494
Federal funds sold		Level 2			19,700			19,700			23,150			23,150
Interest-bearing deposits at financial institutions		Level 2			60,708			60,708			53,249			53,249
Investment securities:
HTM		Level 2			991,452			873,188			948,676			857,663
AFS		Level 2			293,989			293,989			279,777			279,777
Trading		Level 3			115,967			115,967			83,857			83,857
Loans/leases receivable, net		Level 3			40,093			43,300			43,688			47,183
Loans/leases receivable, net		Level 2			6,905,652			6,694,956			7,033,140			6,794,019
Derivatives		Level 2			211,178			211,178			192,426			192,426

Deposits:
Nonmaturity deposits		Level 2			6,425,486			6,425,486			6,145,194			6,145,194
Time deposits		Level 2			991,848			988,503			1,269,004			1,268,442
Short-term borrowings		Level 2			8,907			8,907			2,650			2,650
FHLB advances		Level 2			268,609			267,131			245,383			244,237
Other borrowings		Level 2			99,430			92,144			107,395			100,634
Subordinated notes		Level 2			234,312			237,546			234,122			237,648
Junior subordinated debentures		Level 2			49,057			43,538			48,991			42,997
Derivatives		Level 2			131,921			131,921			214,327			214,327

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NOTE 9 – BUSINESS SEGMENT INFORMATION

Selected financial and descriptive information is required to be disclosed for reportable operating segments, applying a “management perspective” as the basis for identifying reportable segments. The management perspective is determined by the view that management takes of the segments within the Company when making operating decisions, allocating resources, and measuring performance. The segments of the Company have been defined by the structure of the Company’s internal organization, focusing on the financial information that the Company’s operating decision-makers routinely use to make decisions about operating matters. The chief operating decision maker consists of the Chief Executive Officer and President of the Company. The chief operating decision maker reviews financial reports that detail the interest income, interest expense, provision for credit losses, noninterest income, salaries and benefits expense, occupancy expense, other noninterest expenses, income tax expense and net income from continuing operations and compares the actual results to the amounts budgeted and the reason for variances. The results of this review allow the Company’s chief operating decision maker to make operating decisions and allocate resources. Capital markets revenue is considered a significant source of noninterest income. Salaries and benefits expense and occupancy expense are considered significant noninterest expenses.

The Company’s Commercial Banking business is geographically divided by markets into the operating segments which are the four subsidiary banks wholly owned by the Company: QCBT, CRBT, CSB, and GB. Each of these operating segments offers similar products and services, but is managed separately due to different pricing, product demand, and consumer markets. Each offers commercial, consumer, and mortgage loans and deposit services.

The Company's All Other segment includes the corporate operations of the parent and operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds.

Selected financial information on the Company's business segments is presented as follows as of and for the three and six months ended June 30, 2026 and 2025:


	Commercial Banking										Intercompany		Consolidated
	QCBT		CRBT		CSB		GB		All other		Eliminations		Total

	(dollars in thousands)
Three Months Ended June 30, 2026
Interest and dividend income	$	37,299	$	35,302	$	22,305	$	29,919	$	74	$	(3,872)	$	121,027
Interest expense		17,741		12,650		8,316		14,044		4,639		(4,279)		53,111
Net interest income		19,558		22,652		13,989		15,875		(4,565)		407		67,916
Provision for credit losses		(524)		294		281		4,657		—		—		4,708
Noninterest income
Capital markets revenue		101		13,668		—		1,623		—		—		15,392
Other segment revenue items		6,377		4,469		1,545		2,013		44,414		(44,783)		14,035
Total noninterest income		6,478		18,137		1,545		3,636		44,414		(44,783)		29,427
Noninterest expense
Salaries and benefits expense		8,260		10,030		5,402		7,103		1,325		—		32,120
Occupancy expense		1,625		1,887		1,626		1,755		449		—		7,342
Other segment expense items		3,715		4,013		2,379		3,012		1,116		(540)		13,695
Total noninterest expense		13,600		15,930		9,407		11,870		2,890		(540)		53,157
Income tax expense		1,173		2,907		(9)		(1,024)		180		—		3,227
Net income (loss) from continuing operations	$	11,787	$	21,658	$	5,855	$	4,008	$	36,779	$	(43,836)	$	36,251

Goodwill	$	2,791	$	14,980	$	9,888	$	110,936	$	—	$	—	$	138,595
Intangibles		—		274		—		6,794		—		—		7,068
Total assets		2,787,394		2,880,251		1,745,280		2,377,330		1,504,662		(1,774,274)		9,520,643

Three Months Ended June 30, 2025
Interest and dividend income	$	36,857	$	32,949	$	20,981	$	30,369	$	72	$	(981)	$	120,247
Interest expense		17,887		12,926		8,468		16,004		4,284		(1,404)		58,165
Net interest income		18,970		20,023		12,513		14,365		(4,212)		423		62,082
Provision for credit losses		2,082		1,190		152		619		—		—		4,043
Noninterest income
Capital markets revenue		16		8,553		—		1,300		—		—		9,869
Other segment revenue items		5,277		4,017		1,242		2,009		35,011		(35,310)		12,246
Total noninterest income		5,293		12,570		1,242		3,309		35,011		(35,310)		22,115
Noninterest expense
Salaries and benefits expense		7,449		8,952		4,777		7,474		(178)		—		28,474
Occupancy expense		1,603		1,770		1,217		1,795		452		—		6,837
Other segment expense items		4,064		3,606		2,383		3,158		1,710		(649)		14,272
Total noninterest expense		13,116		14,328		8,377		12,427		1,984		(649)		49,583
Income tax expense		825		1,643		65		(336)		(645)		—		1,552
Net income (loss) from continuing operations	$	8,240	$	15,432	$	5,161	$	4,964	$	29,460	$	(34,238)	$	29,019

Goodwill	$	2,791	$	14,980	$	9,888	$	110,936	$	—	$	—	$	138,595
Intangibles		—		508		600		8,630		—		—		9,738
Total assets		2,656,336		2,614,303		1,605,546		2,360,967		1,380,680		(1,438,065)		9,179,767

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	Commercial Banking															Intercompany			Consolidated
	QCBT			CRBT			CSB			GB			All other			Eliminations			Total

	(dollars in thousands)
Six Months Ended June 30, 2026
Interest and dividend income	$	73,920		$	69,620		$	43,978		$	60,343		$	143		$	(6,886)		$	241,118
Interest expense		34,828			24,985			16,480			27,915			9,246			(7,690)			105,764
Net interest income		39,092			44,635			27,498			32,428			(9,103)			804			135,354
Provision for credit losses		876			517			708			5,061			—			—			7,162
Noninterest income
Capital markets revenue		101			22,697			—			3,295			—			—			26,093
Other segment revenue items		12,186			7,519			3,069			4,051			85,956			(86,495)			26,286
Total noninterest income		12,287			30,216			3,069			7,346			85,956			(86,495)			52,379
Noninterest expense
Salaries and benefits expense		16,317			19,143			10,771			14,732			2,546			—			63,509
Occupancy expense		3,118			3,828			3,086			3,445			1,344			—			14,821
Other segment expense items		7,786			7,404			4,380			6,018			2,466			(1,102)			26,952
Total noninterest expense		27,221			30,375			18,237			24,195			6,356			(1,102)			105,282
Income tax expense		1,822			4,872			12			(919)			(132)			—			5,655
Net income (loss) from continuing operations	$	21,460		$	39,087		$	11,610		$	11,437		$	70,629		$	(84,589)		$	69,634

Goodwill	$	2,791		$	14,980		$	9,888		$	110,936		$	—		$	—		$	138,595
Intangibles		—			274			—			6,794			—			—			7,068
Total assets		2,787,394			2,880,251			1,745,280			2,377,330			1,504,662			(1,774,274)			9,520,643

Six Months Ended June 30, 2025
Interest and dividend income	$	72,794		$	64,881		$	40,989		$	59,712		$	159		$	(1,615)		$	236,920
Interest expense		35,200			25,392			16,570			31,566			8,570			(2,446)			114,852
Net interest income		37,594			39,489			24,419			28,146			(8,411)			831			122,068
Provision for credit losses		3,494			1,276			1,514			1,993			—			—			8,277
Noninterest income
Capital markets revenue		16			14,156			62			2,151			—			—			16,385
Other segment revenue items		10,488			6,412			2,744			3,683			66,727			(67,432)			22,622
Total noninterest income		10,504			20,568			2,806			5,834			66,727			(67,432)			39,007
Noninterest expense
Salaries and benefits expense		14,858			16,813			9,650			13,978			539			—			55,838
Occupancy expense		3,142			3,366			2,455			3,392			937			—			13,292
Other segment expense items		8,098			7,158			4,488			6,234			2,308			(1,294)			26,992
Total noninterest expense		26,098			27,337			16,593			23,604			3,784			(1,294)			96,122
Income tax expense		1,722			2,407			(181)			(752)			(1,336)			—			1,860
Net income (loss) from continuing operations	$	16,784		$	29,037		$	9,299		$	9,135		$	55,868		$	(65,307)		$	54,816

Goodwill	$	2,791		$	14,980		$	9,888		$	110,936		$	—		$	—		$	138,595
Intangibles		—			508			600			8,630			—			—			9,738
Total assets		2,656,336			2,614,303			1,605,546			2,360,967			1,380,680			(1,438,065)			9,179,767

Intercompany eliminations included in the selected financial information on the Company’s business segments consist of equity in net income of each subsidiary bank and investment in each subsidiary bank as follows:


	Commercial Banking
	QCBT			CRBT			CSB			GB		Total

	(dollars in thousands)
Three Months Ended June 30, 2026
Other segment revenue items:
Equity in net income of subsidiary bank	$	11,787		$	21,658		$	5,855		$	4,008	$	43,308
Total assets:
Investment in subsidiary bank		315,329			488,857			202,091			394,290		1,400,567

Three Months Ended June 30, 2025
Other segment revenue items:
Equity in net income of subsidiary bank	$	8,240		$	15,432		$	5,161		$	4,964	$	33,797
Total assets:
Investment in subsidiary bank		297,789			454,519			182,701			389,152		1,324,161


Six Months Ended June 30, 2026
Other segment revenue items:
Equity in net income of subsidiary bank	$	21,460		$	39,087		$	11,610		$	11,437	$	83,594
Total assets:
Investment in subsidiary bank		315,329			488,857			202,091			394,290		1,400,567

Six Months Ended June 30, 2025
Other segment revenue items:
Equity in net income of subsidiary bank	$	16,784		$	29,037		$	9,299		$	9,135	$	64,255
Total assets:
Investment in subsidiary bank		297,789			454,519			182,701			389,152		1,324,161

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NOTE 10 – REGULATORY CAPITAL REQUIREMENTS

The Company (on a consolidated basis) and the subsidiary banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and the subsidiary banks' financial statements.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the subsidiary banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain OBS items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the subsidiary banks to maintain minimum amounts and ratios (set forth in the following table) of total common equity Tier 1, Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets, each as defined by regulation. Management believes, as of June 30, 2026 and December 31, 2025, that the Company and the subsidiary banks met all capital adequacy requirements to which they are subject.

Under the regulatory framework for prompt corrective action, to be categorized as “well capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage and common equity Tier 1 ratios as set forth in the following tables. The Company and the subsidiary banks’ actual capital amounts and ratios as of June 30, 2026 and December 31, 2025 are presented in the following tables (dollars in thousands). As of June 30, 2026 and December 31, 2025, each of the subsidiary banks met such capital requirements to be “well capitalized.”


												For Capital Adequacy					To Be Well Capitalized
							For Capital					Purposes With Capital					Under Prompt Corrective
		Actual					Adequacy Purposes					Conservation Buffer					Action Provisions
		Amount			Ratio		Amount			Ratio		Amount			Ratio		Amount			Ratio

		( dollars in thousands)
As of June 30, 2026:
Company:
Total risk-based capital		$	1,389,134		14.13	%	$	786,414	>	8.00	%	$	1,032,169	>	10.50	%	$	983,018	>	10.00	%
Tier 1 risk-based capital			1,099,397		11.18			589,811	>	6.00			835,565	>	8.50			786,414	>	8.00
Tier 1 leverage			1,099,397		11.65			377,344	>	4.00			377,344	>	4.00			471,680	>	5.00
Common equity Tier 1			1,050,340		10.68			442,358	>	4.50			688,112	>	7.00			638,962	>	6.50
Quad City Bank & Trust:
Total risk-based capital		$	349,002		15.35	%	$	181,940	>	8.00	%	$	238,797	>	10.50	%	$	227,425	>	10.00	%
Tier 1 risk-based capital			324,991		14.29			136,455	>	6.00			193,312	>	8.50			181,940	>	8.00
Tier 1 leverage			324,991		11.01			118,067	>	4.00			118,067	>	4.00			147,584	>	5.00
Common equity Tier 1			324,991		14.29			102,341	>	4.50			159,198	>	7.00			147,827	>	6.50
Cedar Rapids Bank & Trust:
Total risk-based capital		$	511,774		13.86	%	$	295,329	>	8.00	%	$	387,620	>	10.50	%	$	369,162	>	10.00	%
Tier 1 risk-based capital			485,591		13.15			221,497	>	6.00			313,788	>	8.50			295,329	>	8.00
Tier 1 leverage			485,591		16.94			114,665	>	4.00			114,665	>	4.00			143,331	>	5.00
Common equity Tier 1			485,591		13.15			166,123	>	4.50			258,413	>	7.00			239,955	>	6.50
Community State Bank:
Total risk-based capital		$	218,364		12.74	%	$	137,112	>	8.00	%	$	179,959	>	10.50	%	$	171,390	>	10.00	%
Tier 1 risk-based capital			203,782		11.89			102,834	>	6.00			145,681	>	8.50			137,112	>	8.00
Tier 1 leverage			203,782		11.67			69,872	>	4.00			69,872	>	4.00			87,340	>	5.00
Common equity Tier 1			203,782		11.89			77,125	>	4.50			119,973	>	7.00			111,403	>	6.50
Guaranty Bank:
Total risk-based capital		$	312,656		14.44	%	$	173,176	>	8.00	%	$	227,293	>	10.50	%	$	216,470	>	10.00	%
Tier 1 risk-based capital			285,566		13.19			129,882	>	6.00			183,999	>	8.50			173,176	>	8.00
Tier 1 leverage			285,566		12.34			92,561	>	4.00			92,561	>	4.00			115,701	>	5.00
Common equity Tier 1			285,566		13.19			97,411	>	4.50			151,529	>	7.00			140,705	>	6.50

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												For Capital Adequacy					To Be Well Capitalized
							For Capital					Purposes With Capital					Under Prompt Corrective
		Actual					Adequacy Purposes					Conservation Buffer					Action Provisions
		Amount			Ratio		Amount			Ratio		Amount			Ratio		Amount			Ratio

		( dollars in thousands)
As of December 31, 2025:
Company:
Total risk-based capital		$	1,369,172		14.19	%	$	771,812	>	8.00	%	$	1,013,003	>	10.50	%	$	964,765	>	10.00	%
Tier 1 risk-based capital			1,063,505		11.02			578,859	>	6.00			820,050	>	8.50			771,812	>	8.00
Tier 1 leverage			1,063,505		11.07			384,419	>	4.00			384,419	>	4.00			480,523	>	5.00
Common equity Tier 1			1,014,514		10.52			434,144	>	4.50			675,335	>	7.00			627,097	>	6.50
Quad City Bank & Trust:
Total risk-based capital		$	342,214		14.33	%	$	191,071	>	8.00	%	$	250,780	>	10.50	%	$	238,838	>	10.00	%
Tier 1 risk-based capital			313,533		13.13			143,303	>	6.00			203,013	>	8.50			191,071	>	8.00
Tier 1 leverage			313,533		10.65			117,711	>	4.00			117,711	>	4.00			147,138	>	5.00
Common equity Tier 1			313,533		13.13			107,477	>	4.50			167,187	>	7.00			155,245	>	6.50
Cedar Rapids Bank & Trust:
Total risk-based capital		$	495,107		14.61	%	$	271,051	>	8.00	%	$	355,754	>	10.50	%	$	338,814	>	10.00	%
Tier 1 risk-based capital			466,349		13.76			203,288	>	6.00			287,992	>	8.50			271,051	>	8.00
Tier 1 leverage			466,349		16.22			115,000	>	4.00			115,000	>	4.00			143,751	>	5.00
Common equity Tier 1			466,349		13.76			152,466	>	4.50			237,170	>	7.00			220,229	>	6.50
Community State Bank:
Total risk-based capital		$	212,148		12.65	%	$	134,206	>	8.00	%	$	176,146	>	10.50	%	$	167,758	>	10.00	%
Tier 1 risk-based capital			197,171		11.75			100,655	>	6.00			142,594	>	8.50			134,206	>	8.00
Tier 1 leverage			197,171		11.42			69,072	>	4.00			69,072	>	4.00			86,340	>	5.00
Common equity Tier 1			197,171		11.75			75,491	>	4.50			117,431	>	7.00			109,043	>	6.50
Guaranty Bank:
Total risk-based capital		$	308,357		14.13	%	$	174,598	>	8.00	%	$	229,159	>	10.50	%	$	218,247	>	10.00	%
Tier 1 risk-based capital			283,230		12.98			130,948	>	6.00			185,510	>	8.50			174,598	>	8.00
Tier 1 leverage			283,230		12.03			94,143	>	4.00			94,143	>	4.00			117,679	>	5.00
Common equity Tier 1			283,230		12.98			98,211	>	4.50			152,773	>	7.00			141,861	>	6.50

NOTE 11 - COMMITMENTS

The Company entered into a construction contract in 2025 for the construction of a new corporate headquarters including a new branch facility for QCBT in Bettendorf, Iowa. The Company will pay the contractor a contract price of approximately $66.5 million, subject to certain agreed upon additions and deductions. As of June 30, 2026, the Company had paid $21.2 million of the contract price, resulting in a remaining future commitment of approximately $45.3 million. Construction on this facility is anticipated to be completed in 2027.

NOTE 12 - LEGAL CONTINGENCIES

In the normal course of business, the Company and its subsidiaries are subject to pending and threatened litigation, claims investigations and legal and administrative cases and proceedings.

Under applicable accounting standards, reserves are established for legal claims only when losses associated with the claims are judged to be probable, and the loss can be reasonably estimated. When a material loss contingency is reasonably possible, but not probable, the Company does not record a liability, but instead discloses the nature of the matter and an estimate of the loss or range of losses, to the extent such estimate can be made. Significant judgment is required in both the determination of possibility or probability, and whether the loss or range of losses is reasonably estimable. The Company’s judgments are subjective and based on the status of the legal or regulatory proceedings, the merits of the Company’s defenses and consultation with in-house and outside legal counsel. Because of uncertainties related to these matters, accruals are based on the best information available to the Company and its advisors at the time, including, among other information, settlement agreements. As additional information becomes available, the Company reassesses the potential liability related to pending claims and litigation and may revise its estimates accordingly. Due to the inherent uncertainties of the legal and regulatory processes, such judgments may be materially different than the actual outcomes. Legal costs such as outside counsel fees are expensed in the period in which the services are rendered.

Assessments of litigation exposure are difficult because they involve inherently unpredictable factors including, but not limited to: whether the proceeding is in the early stages; whether damages are unspecified, unsupported or uncertain; whether there is a potential for punitive or other pecuniary damages; whether the matter involves legal uncertainties, including novel issues of law; whether the matter involves multiple parties and/or jurisdictions; whether discovery has begun or is not complete; whether meaningful settlement discussions have commenced; and whether the proceeding involves class allegations. In many lawsuits and arbitrations, it is not possible to determine whether a liability will be incurred, or to estimate the ultimate or minimum amount of that liability, until the matter is close to resolution, in which

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case a reserve will not be recognized until that time. As a result, the Company may be unable to estimate reasonably possible losses with respect to litigation matters it faces.

In June 2025, CSB was named as a defendant in a lawsuit filed in the Iowa District Court in and for Polk County. The plaintiff alleged, on behalf of himself and a proposed statewide class of consumers, breach of contract and unjust enrichment arising from the CSB’s alleged improper assessment and collection of multiple insufficient funds fees and/or overdraft fees specifically for representment transactions. The petition sought an unspecified amount of monetary damages.

CSB initially filed a motion to dismiss, which was denied in February 2026. CSB filed an Answer and Affirmative Defenses to the petition on April 10, 2026. Management engaged outside counsel experienced in this area to assist with defense and risk assessment. CSB disputed the allegations made by the plaintiff.

As of June 30, 2026, the parties have reached an agreement to resolve the matter with no material costs to the Company.

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Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

INTRODUCTION

This section reviews the financial condition and results of operations of the Company and its subsidiaries as of and for the three and six months ending June 30, 2026. Some tables may include additional periods to comply with disclosure requirements or to illustrate trends. When reading this discussion, also refer to the Consolidated Financial Statements and related notes in this report. Page locations and specific sections and notes that are referred to in this discussion are listed in the table of contents.

Additionally, a comprehensive list of the acronyms and abbreviations used throughout this discussion is included in Note 1 to the Consolidated Financial Statements.

GENERAL

The Company was formed in February 1993 for the purpose of organizing QCBT. Over the past 33 years, the Company has grown to include four banking subsidiaries and a number of nonbanking subsidiaries. As of June 30, 2026, the Company had $9.5 billion in consolidated assets, including $6.9 billion in net loans/leases, and $7.4 billion in deposits. The financial results of acquired entities for the periods since their acquisition are included in this report. Further information related to acquired entities has been presented in the annual reports previously filed with the SEC corresponding to the year of each acquisition.

CRITICAL ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES

The Company's financial statements are prepared in accordance with GAAP. The financial information contained within these statements is, to a significant extent, financial information that is based on approximate measures of the financial effects of transactions and events that have already occurred. The preparation of financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance, determination of the fair value of loans acquired in business combinations, impairment of goodwill, the fair value of financial instruments, and the fair value of securities.

Based on its consideration of accounting policies that involve the most complex and subjective decisions and assessments, management has identified the following as critical accounting policies and estimates:

●

Allowance for Credit Losses on Loans and Leases and Off-Balance Sheet Exposures

A more detailed discussion of these critical accounting policies and estimates can be found in the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

EXECUTIVE OVERVIEW

The Company reported net income of $36.3 million and diluted EPS of $2.19 for the quarter ended June 30, 2026. By comparison, for the quarter ended March 31, 2026, the Company reported net income of $33.4 million and diluted EPS of $1.99. For the quarter ended June 30, 2025, the Company reported net income of $29.0 million, and diluted EPS of $1.71. For the six months ended June 30, 2026, the Company reported net income of $69.6 million and diluted EPS of $4.18. By comparison, for the six months ended June 30, 2025, the Company reported net income of $54.8 million and diluted EPS of $3.22.

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Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

The second quarter of 2026 was also highlighted by the following results and events (see section titled “GAAP to Non-GAAP Reconciliations” for additional information):

●

Net income of $36.3 million, or $2.19 per diluted share, representing a 28% year-over-year increase in diluted EPS;

●

Strong ROAA of 1.51%;

●

Capital markets revenue from LIHTC production increased 69% year-over-year to $16.7 million;

●

Wealth Management assets under management increased 9% and revenue increased 7% on a linked-quarter basis;

●

Enhanced operating leverage, reflected by a 310-basis point improvement over the linked-quarter in the efficiency ratio to 54.6%;

●

Robust loan growth of 12% annualized, excluding securitization, LIHTC offtake transactions, and planned m2 portfolio runoff;

●

Successful execution of $443.6 million in LIHTC loan offtake transactions;

●

Tangible book value per share (non-GAAP) growth of $2.17, or 15% annualized on a linked-quarter basis;

●

Opportunistic share repurchases of 149,639 common shares at an average price of $90.01 per share; and

●

Asset quality improved to its strongest level since 2019.

Following is a table that represents various net income measurements for the Company:


	For the three months ended								For the six months ended
	June 30, 2026			March 31, 2026			June 30, 2025		June 30, 2026			June 30, 2025

	(dollars in thousands, except per share data)

Net income	$	36,251		$	33,383		$	29,019	$	69,634		$	54,816

Diluted earnings per common share	$	2.19		$	1.99		$	1.71	$	4.18		$	3.22

Weighted average common and common equivalent shares outstanding		16,569,815			16,741,541			17,006,282		16,655,678			17,010,136

The Company reported adjusted net income (non-GAAP) of $36.3 million, with adjusted diluted EPS (non-GAAP) of $2.19 for the three months ended June 30, 2026. See section titled “GAAP to Non-GAAP Reconciliations” for additional information. The Company reported adjusted net income (non-GAAP) of $69.7 million, with adjusted diluted EPS (non-GAAP) of $4.18 for the six months ended June 30, 2026.

Following is a table that represents the major income and expense categories for the Company:


	For the three months ended									For the six months ended
	June 30, 2026			March 31, 2026			June 30, 2025			June 30, 2026			June 30, 2025

	(dollars in thousands)

Net interest income	$	67,916		$	67,438		$	62,082		$	135,354		$	122,068
Provision for credit losses		4,708			2,454			4,043			7,162			8,277
Noninterest income		29,427			22,952			22,115			52,379			39,007
Noninterest expense		53,157			52,125			49,583			105,282			96,122
Federal and state income tax expense		3,227			2,428			1,552			5,655			1,860
Net income	$	36,251		$	33,383		$	29,019		$	69,634		$	54,816

Following are certain noteworthy developments in the Company's financial results for the quarter ended June 30, 2026:

●

Net interest income in the second quarter of 2026 increased 1% compared to the first quarter of 2026 and increased 9% compared to the second quarter of 2025 due to higher average earning assets and higher NIM. Net interest

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Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

income increased 11% when comparing the first six months of 2026 to the same period of the prior year due to higher average earning assets and higher NIM.

●

The provision for credit losses in the second quarter of 2026 increased $2.3 million compared to the first quarter of 2026 reflecting loan growth in the current quarter and the prior quarter’s benefit from a reversal of credit loss expense related to loans transferred to held for sale. Provision expense increased $665 thousand compared to the second quarter of 2025. Provision expense in the first six months of 2026 decreased $1.1 million compared to the first six months of 2025. See the “Provision for Credit Losses” section of this report for additional details.

●

Noninterest income in the second quarter of 2026 increased $6.5 million, or 28%, compared to the first quarter of 2026 primarily due to higher capital markets revenue from swap fees during the second quarter. Noninterest income in the second quarter of 2026 increased $7.3 million, or 33%, compared to the second quarter of 2025 and increased $13.4 million, or 34%, when comparing the first six months of 2026 to the same period of the prior year. The increases across both periods were primarily due to higher capital markets revenue from swap fees. The demand for low-income housing remains healthy and the economics associated with these tax credit projects continue to be favorable. The Company has a strong pipeline for this business that continues to improve. The Company expects its capital markets revenue will continue to be a significant source of fee income.

●

Noninterest expense in the second quarter of 2026 increased $1.0 million, or 2%, compared to the first quarter of 2026. The increase was primarily due to higher capital markets revenue and its impact on variable compensation and higher professional and data processing fees. Noninterest expense increased $3.6 million, or 7%, compared to the second quarter of 2025. The increase was primarily due to higher capital markets revenue and its impact on variable compensation, and higher occupancy and equipment expense related to the Company’s digital transformation. Noninterest expense increased $9.2 million, or 10%, when comparing the first six months of 2026 to the same period in the prior year. These increases were primarily due to higher capital markets revenue and its impact on variable compensation and higher occupancy and equipment expense related to the Company’s digital transformation.

STRATEGIC FINANCIAL METRICS

The Company has established certain strategic financial metrics by which it manages its business and measures its performance. The goals are periodically updated to reflect changes in business developments. While the Company is determined to work prudently to achieve these metrics, there is no assurance that they will be met. Moreover, the Company's ability to achieve these metrics may be affected by the factors discussed under “Forward Looking Statements” as well as the factors detailed in the “Risk Factors” section included under Item 1A. of Part I of the Company's Annual Report on Form 10-K for the year ended December 31, 2025. The Company's long-term strategic financial metrics are as follows:

●

Generate loan and lease growth of 9% per year, funded by core deposits, which excludes brokered deposits;

●

Grow fee-based income by at least 6% per year; and

●

Limit annual operating expense growth to 5% per year.

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The following table shows the evaluation of the Company’s strategic financial metrics:


					Year to Date*
Strategic Financial Metric*		Key Metric		Target	June 30, 2026			March 31, 2026			June 30, 2025
Loan and lease growth organically**		Loans and leases growth		> 9% annually		10.3	%		8.0	%		6.0	%
Fee income growth		Fee income growth		> 6% annually		(9.3)	%		(20.4)	%		(36.1)	%
Improve operational efficiencies and hold noninterest expense growth		Noninterest expense growth		< 5% annually		(1.4)	%		(2.4)	%		(6.3)	%

* Ratios and amounts provided for these measurements represent year-to-date actual amounts for the respective period that are then annualized for comparison to the prior year actual. The calculations provided exclude non-core noninterest income and noninterest expense.

** Excludes the securitization, the LIHTC loan offtake transactions and planned runoff of the m2 portfolio.

It should be noted that these initiatives are long-term targets.

STRATEGIC DEVELOPMENTS

The Company has taken the following actions during the second quarter of 2026 to support its corporate strategy and further the strategic financial metrics shown above:

●

In the second quarter of 2026, the Company grew loans and leases by 11.9% annualized, excluding the securitization, LIHTC loan offtake transactions, and planned m2 portfolio runoff. Loan growth was driven by both traditional and LIHTC lending.

●

The Company acted as the correspondent bank through QCBT for 188 downstream banks with total noninterest bearing deposits of $99.3 million and total interest-bearing deposits of $939.3 million as of June 30, 2026, as correspondent banking continued to be a core line of business for the Company. By comparison, the Company acted as the correspondent bank for 189 downstream banks with total noninterest bearing deposits of $97.3 million and total interest-bearing deposits of $933.5 million as of June 30, 2025. The Company is competitively positioned with experienced staff, software systems and processes to continue growing in the four states currently served – Iowa, Wisconsin, Missouri and Illinois. This line of business provides a strong source of deposits, fee income, high-quality loan participations and bank stock loans. The Company also managed off-balance sheet liquidity held at the Federal Reserve on behalf of the downstream banks of $459.8 million as of June 30, 2026, as compared to $409.6 million as of June 30, 2025.

●

The Company continues to focus on executing interest rate swaps on select commercial loans, including LIHTC permanent loans. These interest rate swaps allow commercial borrowers to pay a fixed interest rate while the Company receives a variable interest rate as well as an upfront nonrefundable fee dependent on the pricing. Management believes that these swaps help position the Company more favorably for various interest rate environments. The Company will continue to review opportunities to execute these swaps at each of its subsidiary banks as appropriate for applicable borrowers and the Company. Levels of capital markets revenue from swap fee income are influenced by prevailing interest rates. Capital markets revenue, primarily from swap fee income, totaled $15.4 million for the second quarter of 2026, which included a loss on securitization of $1.3 million, as compared to $9.9 million for the same period of the prior year. Capital markets revenue, primarily from swap fee income, totaled $26.1 million for the first six months of 2026 as compared to $16.4 million for the same period of the prior year. Demand for affordable housing remains strong, as discussed in the “Executive Overview” section of this report, above.

●

Over many years, the Company has been successful in expanding its wealth management client base. Trust and investment advisory and management fees continue to be a significant contributor to noninterest income. Assets under management increased by $623.3 million for the quarter ended June 30, 2026 compared to the quarter ended March 31, 2026 and increased by $570.7 million for the first six months of 2026 compared to the first six months of 2025 primarily due to new relationships and favorable market returns. Income is generated primarily from fees charged based on assets under administration for corporate and personal trusts and for custodial

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services. The majority of trust fees are determined based on the value of the investments managed. The Company expects trust and investment advisory and management fees to be negatively impacted during periods of lower market valuations and positively impacted during periods of higher market valuations. The Company has expanded its wealth management business into the southwest Missouri and central Iowa markets.

●

Noninterest expense for the first six months of 2026 totaled $105.3 million as compared to $96.1 million in the first six months of 2025. The increase was primarily due to an increase in salaries and benefits expenses related to higher variable incentive compensation and increased occupancy and equipment expense related to the Company’s digital transformation.

GAAP TO NON-GAAP RECONCILIATIONS

The following table presents certain non-GAAP financial measures related to the “TCE/TA ratio,” “adjusted net income,” “adjusted EPS,” “adjusted ROAA,” “NIM (TEY),” “adjusted NIM (TEY),” “efficiency ratio,” and “adjusted efficiency ratio.” In compliance with applicable rules of the SEC, all non-GAAP measures are reconciled to the most directly comparable GAAP measure, as follows:

●

TCE/TA ratio (non-GAAP) is reconciled to stockholders’ equity and total assets;

●

Adjusted net income, adjusted EPS and adjusted ROAA (all non-GAAP measures) are reconciled to net income;

●

NIM (TEY) (non-GAAP) is reconciled to NIM; and

●

Efficiency ratio (non-GAAP) and adjusted efficiency ratio (non-GAAP) are reconciled to noninterest expense, net interest income and noninterest income.

The TCE/TA non-GAAP ratio has been a focus for investors, and management believes that this ratio may assist investors in analyzing the Company’s capital position without regard to the effects of intangible assets.

The following tables also include several “adjusted” non-GAAP measurements of financial performance. The Company’s management believes that these measures are important to investors as they exclude non-core or non-recurring income and expense items; therefore, they provide a better comparison for analysis and may provide a better indicator of future performance.

NIM (TEY) is a financial measure that the Company’s management utilizes to determine the tax benefit associated with certain tax-exempt loans and securities. It is standard industry practice to measure net interest margin using tax-equivalent measures.

The efficiency ratio and adjusted efficiency ratio are utilized by management to compare the Company to its peers. They are standard ratios used to calculate overhead as a percentage of revenue in the banking industry and is widely utilized by investors.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have

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limitations as analytical tools and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.


		As of
GAAP TO NON-GAAP		June 30,			March 31,			June 30,
RECONCILIATIONS		2026			2026			2025

		(dollars in thousands)
TCE/TA RATIO
Stockholders' equity (GAAP)		$	1,149,757		$	1,122,464		$	1,050,554
Less: Intangible assets			145,663			146,169			148,333
TCE (non-GAAP)		$	1,004,094		$	976,295		$	902,221

Total assets (GAAP)		$	9,520,643		$	9,613,695		$	9,242,331
Less: Intangible assets			145,663			146,169			148,333
TA (non-GAAP)		$	9,374,980		$	9,467,526		$	9,093,998

TCE/TA ratio (non-GAAP)			10.71	%		10.31	%		9.92	%


		For the Three Months Ended										For the Six Months Ended
		June 30,			March 31,			June 30,				June 30,			June 30,
		2026			2026			2025				2026			2025

		(dollars in thousands, except per share data)
ADJUSTED NET INCOME
Net income (GAAP)		$	36,251		$	33,383		$	29,019			$	69,634		$	54,816
Less non-core items (post-tax) (*):
Income:
Fair value loss on derivatives, net			(4)			(13)			(397)				(17)			(553)
Total non-core income (non-GAAP)		$	(4)		$	(13)		$	(397)			$	(17)		$	(553)
Expense:
Loss on debt extinguishment, net			—			—			—				—			—
Total non-core expense (non-GAAP)		$	—		$	—		$	—			$	—		$	—


Adjusted net income (non-GAAP)		$	36,255		$	33,396		$	29,416			$	69,651		$	55,369

ADJUSTED EPS
Adjusted net income (non-GAAP) (from above)		$	36,255		$	33,396		$	29,416			$	69,651		$	55,369

Weighted average common shares outstanding			16,489,987			16,651,808			16,928,542				16,570,898			16,914,663
Weighted average common and common equivalent shares outstanding			16,569,815			16,741,541			17,006,282				16,655,678			17,010,136

Adjusted EPS (non-GAAP):
Basic		$	2.20		$	2.01		$	1.74			$	4.20		$	3.27
Diluted		$	2.19		$	1.99		$	1.73			$	4.18		$	3.26

ADJUSTED ROAA (non-GAAP)
Adjusted net income (non-GAAP) (from above)		$	36,255		$	33,396		$	29,416			$	69,651		$	55,369

Average Assets		$	9,581,171		$	9,550,010		$	9,155,473			$	9,565,677		$	9,085,843

Adjusted ROAA (non-GAAP)			1.51	%		1.40	%		1.29	%			1.46	%		1.22	%
Adjusted ROAE (non-GAAP)			12.64	%		11.76	%		11.30	%			12.20	%		10.76	%

ADJUSTED NIM TEY*
Net interest income (GAAP)		$	67,916		$	67,438		$	62,082			$	135,354		$	122,068
Plus: Tax equivalent adjustment			9,811			8,851			10,090				19,559			19,603
Net interest income - tax equivalent (non-GAAP)		$	77,727		$	76,289		$	72,172			$	154,913		$	141,671

Average earning assets		$	8,783,423		$	8,640,613		$	8,377,361			$	8,760,416		$	8,309,575

NIM (GAAP)			3.10	%		3.13	%		2.97	%			3.12	%		2.97	%
NIM TEY (non-GAAP)			3.55	%		3.58	%		3.46	%			3.56	%		3.45	%

EFFICIENCY RATIO
Noninterest expense (GAAP)		$	53,157		$	52,125		$	49,583			$	105,282		$	96,122

Net interest income (GAAP)		$	67,916		$	67,438		$	62,082			$	135,354		$	122,068
Noninterest income (GAAP)			29,427			22,952			22,115				52,379			39,007
Total income		$	97,343		$	90,390		$	84,197			$	187,733		$	161,075

Efficiency ratio (noninterest expense/total income) (non-GAAP)			54.61	%		57.67	%		58.89	%			56.08	%		59.68	%
Adjusted efficiency ratio (core noninterest expense/core total income) (Non-GAAP)			54.61	%		57.66	%		58.54	%			56.07	%		59.42	%

* Non-core or non-recurring items (after-tax) are calculated using an estimated effective federal tax rate of 21% with the exception of goodwill impairment which is not deductible for tax.

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NET INTEREST INCOME AND MARGIN - (TAX EQUIVALENT BASIS)

Net interest income, on a GAAP basis, increased 9% for the quarter ended June 30, 2026, compared to the same quarter of the prior year. Net interest income, on a tax equivalent basis (non-GAAP) increased 8% for the quarter ended June 30, 2026, compared to the same quarter of the prior year. Net interest income, on a GAAP basis, increased 11% for the six months ended June 30, 2026, compared to the same period of the prior year. Net interest income, on a tax equivalent basis (non-GAAP) increased 9% for the six months ended June 30, 2026, compared to the same period of the prior year. Net interest income changed primarily due to the Company’s loan and investment growth and continued expansion of loan and investment yields.

A comparison of yields, spread and margin as reported on the Company’s financial statements and on a tax equivalent basis is as follows:


	GAAP						Tax Equivalent Basis
	For the Three Months Ended						For the Three Months Ended
	June 30,		March 31,		June 30,		June 30,		March 31,		June 30,
	2026		2026		2025		2026		2026		2025
Average Yield on Interest-Earning Assets	5.51	%	5.50	%	5.74	%	5.97	%	6.02	%	6.24	%
Average Cost of Interest-Bearing Liabilities	2.98	%	3.00	%	3.42	%	2.98	%	3.00	%	3.42	%
Net Interest Spread	2.53	%	2.50	%	2.32	%	2.99	%	3.02	%	2.82	%
NIM TEY (Non-GAAP)	3.55	%	3.58	%	3.46	%	3.55	%	3.58	%	3.46	%


	GAAP					Tax Equivalent Basis
	For the Six Months Ended					For the Six Months Ended
	June 30,		June 30,			June 30,		June 30,
	2026		2025			2026		2025
Average Yield on Interest-Earning Assets	5.50	%		5.70	%	5.99	%		6.22	%
Average Cost of Interest-Bearing Liabilities	2.99	%		3.43	%	2.99	%		3.43	%
Net Interest Spread	2.51	%		2.27	%	3.00	%		2.79	%
NIM TEY (Non-GAAP)	3.56	%		3.45	%	3.56	%		3.45	%

The Company’s management closely monitors and manages NIM. From a profitability standpoint, an important challenge for the Company’s subsidiary banks and leasing company is focusing on quality growth in conjunction with the improvement of their NIMs. Management continually addresses this issue with pricing and other balance sheet strategies which include better loan pricing, reducing reliance on rate-sensitive funding, closely managing deposit rate changes and finding additional ways to manage cost of funds through derivatives.

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The Company’s average balances, interest income/expense, and rates earned/paid on major balance sheet categories, as well as the components of change in net interest income, are presented in the following tables:


	For the Three Months Ended June 30,
	2026								2025
				Interest		Average						Interest		Average
	Average			Earned		Yield or			Average			Earned		Yield or
	Balance			or Paid		Cost			Balance			or Paid		Cost

	(dollars in thousands)
ASSETS
Interest earning assets:
Federal funds sold	$	5,264		$	52		3.91	%	$	14,285		$	159		4.40	%
Interest-bearing deposits at financial institutions		150,092			1,353		3.62	%		151,898			1,634		4.31	%
Investment securities - taxable		426,526			4,755		4.47	%		401,657			4,805		4.79	%
Investment securities - nontaxable (1)		989,220			15,537		6.29	%		893,753			12,872		5.76	%
Restricted investment securities		30,028			519		6.84	%		34,037			622		7.23	%
Gross loans/leases receivable (1) (2) (3)		7,182,293			108,623		6.07	%		6,881,731			110,245		6.43	%
Total interest earning assets		8,783,423			130,839		5.97	%		8,377,361			130,337		6.24	%

Noninterest-earning assets:
Cash and due from banks		81,823								78,264
Premises and equipment		231,363								172,919
Less allowance		(84,358)								(89,378)
Other		568,920								616,307
Total assets	$	9,581,171							$	9,155,473

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing deposits	$	5,519,231		$	36,251		2.63	%	$	5,080,367		$	38,604		3.05	%
Time deposits		1,080,345			9,543		3.54	%		1,193,035			12,409		4.17	%
Short-term borrowings		3,138			30		3.82	%		1,420			15		4.23	%
FHLB advances		153,279			1,384		3.57	%		250,603			2,853		4.50	%
Other borrowings		107,389			1,265		4.71	%		—			—		—	%
Subordinated notes		234,250			3,923		6.70	%		233,631			3,599		6.16	%
Junior subordinated debentures		49,035			716		5.78	%		48,904			685		5.54	%
Total interest-bearing liabilities		7,146,667			53,112		2.98	%		6,807,960			58,165		3.42	%

Noninterest-bearing demand deposits		1,013,821								945,138
Other noninterest-bearing liabilities		273,301								360,947
Total liabilities		8,433,789								8,114,045

Stockholders' equity		1,147,382								1,041,428
Total liabilities and stockholders' equity	$	9,581,171							$	9,155,473
Net interest income				$	77,727							$	72,172
Net interest margin							3.10	%							2.97	%
Net interest margin TEY (Non-GAAP)							3.55	%							3.46	%
Cost of funds (4)							2.61	%							3.01	%

Ratio of average interest-earning assets to average interest-bearing liabilities		122.90	%							123.05	%

(1)	Interest earned and yields on nontaxable investment securities and nontaxable loans are determined on a tax equivalent basis using a 21% federal tax rate.

(2)	Loan/lease fees are not material and are included in interest income from loans/leases receivable in accordance with accounting and regulatory guidance.

(3)	Non-accrual loans/leases are included in the average balance for gross loans/leases receivable in accordance with accounting and regulatory guidance.

(4)	Cost of funds includes the effect of noninterest-bearing demand deposits.

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Analysis of Changes of Interest Income/Interest Expense

For the Three Months Ended June 30, 2026




	Inc./(Dec.)		Components
	from		of Change (1)
	Prior Period (1)		Rate		Volume

	2026 vs. 2025
	(dollars in thousands)
INTEREST INCOME
Federal funds sold	$	(107)	$	(16)	$	(91)
Interest-bearing deposits at financial institutions		(281)		(262)		(19)
Investment securities - taxable		(50)		(1,262)		1,212
Investment securities - nontaxable (2)		2,665		1,233		1,432
Restricted investment securities		(103)		(32)		(71)
Gross loans/leases receivable (2) (3)		(1,622)		(22,625)		21,003
Total change in interest income		502		(22,964)		23,466

INTEREST EXPENSE
Interest-bearing deposits		(2,353)		(17,897)		15,544
Time deposits		(2,866)		(1,763)		(1,103)
Short-term borrowings		15		(10)		25
Federal Home Loan Bank advances		(1,469)		(510)		(959)
Other borrowings		1,265		—		1,265
Subordinated notes		324		315		9
Junior subordinated debentures		31		29		2
Total change in interest expense		(5,053)		(19,836)		14,783

Total change in net interest income	$	5,555	$	(3,128)	$	8,683

(1)	The column “Inc./(Dec.) from Prior Period” is segmented into the changes attributable to variations in volume and the changes attributable to changes in interest rates. The variations attributable to simultaneous volume and rate changes have been proportionately allocated to rate and volume.

(2)	Interest earned and yields on nontaxable investment securities and nontaxable loans are determined on a tax equivalent basis using a 21% federal tax rate.

(3)	Loan/lease fees are not material and are included in interest income from loans/leases receivable in accordance with accounting and regulatory guidance.

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	For the Six Months Ended June 30,
	2026								2025
				Interest		Average						Interest		Average
	Average			Earned		Yield or			Average			Earned		Yield or
	Balance			or Paid		Cost			Balance			or Paid		Cost

	(dollars in thousands)
ASSETS
Interest earning assets:
Federal funds sold	$	6,626		$	125		3.74	%	$	11,662		$	258		4.40	%
Interest-bearing deposits at financial institutions		158,832			2,841		3.61	%		159,356			3,438		4.35	%
Investment securities - taxable		418,479			9,717		4.65	%		401,220			9,393		4.69	%
Investment securities - nontaxable (1)		966,387			29,586		6.13	%		868,754			24,594		5.67	%
Restricted investment securities		27,292			904		6.59	%		32,309			1,156		7.12	%
Gross loans/leases receivable (1) (2) (3)		7,182,800			217,504		6.11	%		6,836,274			217,684		6.42	%
Total interest earning assets		8,760,416			260,677		5.99	%		8,309,575			256,523		6.22	%

Noninterest-earning assets:
Cash and due from banks		80,350								78,031
Premises and equipment, net		225,526								167,617
Less allowance for estimated losses on loans/leases		(87,141)								(89,710)
Other		586,526								620,330
Total assets	$	9,565,677							$	9,085,843

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing demand deposits	$	5,485,639		$	71,745		2.64	%	$	5,041,914		$	76,302		3.05	%
Time deposits		1,143,968			20,604		3.63	%		1,198,782			25,098		4.22	%
Short-term borrowings		3,191			58		3.57	%		1,629			33		4.05	%
Federal Home Loan Bank advances		97,861			1,680		3.42	%		214,444			4,849		4.50	%
Other borrowings		107,402			2,431		4.53	%		—			—		—	%
Subordinated notes		234,202			7,843		6.70	%		233,579			7,201		6.17	%
Junior subordinated debentures		49,019			1,403		5.69	%		48,888			1,369		5.57	%
Total interest-bearing liabilities		7,121,282			105,764		2.99	%		6,739,236			114,852		3.43	%

Noninterest-bearing demand deposits		1,002,337								941,916
Other noninterest-bearing liabilities		300,183								375,167
Total liabilities		8,423,802								8,056,319

Stockholders' equity		1,141,875								1,029,524
Total liabilities and stockholders' equity	$	9,565,677							$	9,085,843
Net interest income				$	154,913							$	141,671
Net interest margin							3.12	%							2.95	%
Net interest margin TEY (Non-GAAP)							3.56	%							3.45	%
Cost of funds (4)							2.62	%							3.01	%

Ratio of average interest earning assets to average interest-bearing liabilities		123.02	%							123.30	%

(1)	Interest earned and yields on nontaxable investment securities and nontaxable loans are determined on a tax equivalent basis using a 21% federal tax rate.

(2)	Loan/lease fees are not material and are included in interest income from loans/leases receivable in accordance with accounting and regulatory guidance.

(3)	Non-accrual loans/leases are included in the average balance for gross loans/leases receivable in accordance with accounting and regulatory guidance.

(4)	Cost of funds includes the effect of noninterest-bearing demand deposits.

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Analysis of Changes of Interest Income/Interest Expense
For the six months ended June 30, 2026

	Inc./(Dec.)		Components
	from		of Change (1)
	Prior Period (1)		Rate		Volume

	2026 vs. 2025
	(dollars in thousands)
INTEREST INCOME
Federal funds sold	$	(133)	$	(34)	$	(99)
Interest-bearing deposits at other financial institutions		(597)		(586)		(11)
Investment securities - taxable		324		(214)		538
Investment securities - nontaxable (2)		4,992		2,093		2,899
Restricted investment securities		(252)		(82)		(170)
Gross loans/leases receivable (2) (3)		(180)		(21,795)		21,615
Total change in interest income		4,154		(20,618)		24,772

INTEREST EXPENSE
Interest-bearing demand deposits		(4,557)		(19,112)		14,555
Time deposits		(4,494)		(3,387)		(1,107)
Short-term borrowings		25		(11)		36
Federal Home Loan Bank advances		(3,169)		(971)		(2,198)
Other borrowings		2,431		—		2,431
Subordinated notes		642		623		19
Junior subordinated debentures		34		30		4
Total change in interest expense		(9,088)		(22,828)		13,740

Total change in net interest income	$	13,242	$	2,210	$	11,032

(1)	The column “Inc./(Dec.) from Prior Period” is segmented into the changes attributable to variations in volume and the changes attributable to changes in interest rates. The variations attributable to simultaneous volume and rate changes have been proportionately allocated to rate and volume.

(2)	Interest earned and yields on nontaxable investment securities and nontaxable loans are determined on a tax equivalent basis using a 21% federal tax rate.

(3)	Loan/lease fees are not material and are included in interest income from loans/leases receivable in accordance with accounting and regulatory guidance.

The Company’s operating results are also impacted by various sources of noninterest income, including trust fees, investment advisory and management fees, deposit service fees, capital markets revenue, including swap fee income and gains on loan securitizations, gains from the sales of residential real estate loans and government guaranteed loans, earnings on BOLI and other income. Offsetting these items, the Company incurs noninterest expenses, which include salaries and employee benefits, occupancy and equipment expense, professional and data processing fees, FDIC and other insurance expense, loan/lease expense and other administrative expenses.

The Company’s operating results are also affected by economic and competitive conditions, particularly changes in interest rates, income tax rates, government policies and actions of regulatory authorities. For a discussion of the factors that could have a material impact on the operations and future prospects of the Company and its subsidiaries, see the “Risk Factors” section included under Item 1A. of Part I of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.

RESULTS OF OPERATIONS

INTEREST INCOME

Interest income increased $780 thousand, comparing the second quarter of 2026 to the same period of 2025 and increased $4.2 million when comparing the first six months of 2026 to the same period of 2025. Interest income (tax equivalent non-GAAP) increased $502 thousand, comparing the second quarter of 2026 to the same period of 2025 and increased $4.2 million when comparing the first six months of 2026 to the same period of 2025. These increases in interest income were primarily due to higher investment average balances and higher investment and loan yields.

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The Company intends to continue growing quality loans as well as its private placement tax-exempt securities portfolio to maximize yield while minimizing credit and interest rate risk.

INTEREST EXPENSE

Interest expense decreased $5.1 million, comparing the second quarter of 2026 to the same period of 2025, and decreased $9.1 million, comparing the first six months of 2026 to the same period of 2025, primarily due to the lower cost of funds. The Company’s cost of funds was 2.61% for the quarter ended June 30, 2026, a decrease from 3.01% for the quarter ended June 30, 2025. The Company’s costs of funds was 2.62% for the six months ended June 30, 2026, a decrease from 3.01% for the six months ended June 30, 2025. The decrease was a result of the Federal Reserve lowering interest rates and the corresponding impact on the Company’s liability sensitive balance sheet.

PROVISION FOR CREDIT LOSSES

The ACL is established through provision expense to provide an estimated ACL. The following table shows the components of the provision for credit losses for the three and six months ended June 30, 2026 and 2025:


		Three Months Ended					Six Months Ended
		June 30,			June 30,		June 30,			June 30,
		2026			2025		2026			2025

		(dollars in thousands)					(dollars in thousands)

Provision for credit losses - loans and leases		$	4,652		$	4,667	$	7,340		$	9,410
Provision for credit losses - off-balance sheet exposures			56			(624)		(178)			(1,133)
Total provision for credit losses		$	4,708		$	4,043	$	7,162		$	8,277

The Company had a total provision for credit losses on loans and leases of $4.7 million for both the second quarter of 2026 and the same period of 2025. The provision related to OBS was $56 thousand for the second quarter of 2026 compared to a negative provision of $624 thousand for the second quarter of 2025 and was a negative provision of $178 thousand for the first six months of 2026 compared to negative $1.1 million for the first six months of 2025. The balance primarily fluctuates with changes in the balance of unfunded commitments. Provision for credit losses on loans and leases for the first six months of 2026 totaled $7.3 million, a decrease from $9.4 million for the first six months of 2025. The decrease was primarily driven by a decrease in NPAs and net charge-offs, partially offset by loan growth. There was no provision related to HTM securities for the first six months of 2026 or 2025.

The ACL for loans and leases is established based on a number of factors, including the Company's historical loss experience, delinquencies and charge-off trends, economic and other forecasts, the local, state and national economies and risk associated with the loans/leases and securities in the portfolio, as described in more detail in the “Critical Accounting Policies and Critical Accounting Estimates” section of this report.

The Company had an ACL for loans/leases held for investment of 1.24% of total gross loans/leases held for investment at June 30, 2026, compared to 1.26% at March 31, 2026 and 1.28% at June 30, 2025.

Additional discussion of the Company's allowance can be found in the “Financial Condition” section of this report.

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NONINTEREST INCOME

The following table sets forth the various categories of noninterest income for the three and six months ended June 30, 2026 and 2025:


		Three Months Ended
		June 30,			June 30,
		2026			2025			$ Change			% Change

		(dollars in thousands)

Trust fees		$	4,281		$	3,395		$	886		26.1	%
Investment advisory and management fees			1,551			1,254			297		23.7
Deposit service fees			2,115			2,187			(72)		(3.3)
Gains on sales of residential real estate loans, net			507			556			(49)		(8.8)
Capital markets revenue			15,392			9,869			5,523		56.0
Earnings on bank-owned life insurance			1,025			998			27		2.7
Debit card fees			1,752			1,648			104		6.3
Correspondent banking fees			747			699			48		6.9
Loan related fee income			1,066			1,096			(30)		(2.7)
Fair value gain on derivatives and trading securities			802			230			572		248.7
Other			189			183			6		3.3
Total noninterest income		$	29,427		$	22,115		$	7,312		33.1	%


		Six Months Ended
		June 30,			June 30,
		2026			2025			$ Change		% Change

		(dollars in thousands)

Trust fees		$	8,175		$	7,081		$	1,094	15.4	%
Investment advisory and management fees			3,090			2,508			582	23.2
Deposit service fees			4,088			4,370			(282)	(6.5)
Gains on sales of residential real estate loans, net			1,121			853			268	31.4
Capital markets revenue			26,093			16,385			9,708	59.2
Earnings on bank-owned life insurance			1,956			1,522			434	28.5
Debit card fees			3,411			3,136			275	8.8
Correspondent banking fees			1,440			1,313			127	9.7
Loan related fee income			2,016			1,994			22	1.1
Fair value loss on derivatives and trading securities			(67)			(777)			710	91.4
Other			1,056			622			434	69.8
Total noninterest income		$	52,379		$	39,007		$	13,372	34.3	%

The Company continues to be successful in expanding its wealth management client base. Trust and investment advisory and management fees continue to be a significant contributor to noninterest income. Assets under management have increased $623.3 million since March 31, 2026 and have increased $978.1 million since June 30, 2025 due primarily to new relationships and favorable market performance. Income is generated primarily from fees charged based on assets under administration for corporate and personal trusts and for custodial services. The majority of trust fees are determined based on the value of the investments within the fully-managed trusts. Trust fees increased 26% in the second quarter of 2026 as compared to the same period of the prior year and increased 15% when comparing the first six months of 2026 to the first six months of 2025 due to growth in assets under management and market performance. The Company expects trust and investment advisory and management fees to be negatively impacted during periods of significantly lower market valuations and positively impacted during periods of significantly higher market valuations.

Investment advisory and management fees increased 24% comparing the second quarter of 2026 to the same period of the prior year and increased 23% when comparing the first six months of 2026 to the first six months of 2025. Similar to trust fees, fees from these services are largely determined based on the market value of the investments managed. As a result, fee income from this line of business fluctuates with market valuations.

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Deposit service fees decreased 3% in the second quarter of 2026 as compared to the same period of the prior year, and decreased 7% in the first six months of 2026 as compared to the first six months of 2025 due to decreases in nonsufficient funds and overdraft fees. The Company’s total deposits increased by $99.0 million, or 1%, when comparing June 30, 2026 to June 30, 2025. The Company continues to be successful in expanding its core deposit base with a targeted focus on growing the number of net new accounts in 2026.

Gains on sales of residential real estate loans, net, decreased 9% when comparing the second quarter of 2026 to the same period of the prior year, and increased 31% when comparing the first six months of 2026 to the first six months of 2025. The increase was due to higher volumes of client residential real estate purchase activity generating higher levels of gains.

Capital markets revenue totaled $15.4 million for the second quarter of 2026, compared to $9.9 million for the second quarter of 2025. Capital markets revenue totaled $26.1 for the first six months of 2026, compared to $16.4 million for the first six months of 2025. As discussed in the “Executive Overview” section of this report, demand for affordable housing remains strong. In the traditional commercial portfolio, the pricing is more competitive and the duration is shorter as compared to the LIHTC permanent loans. Therefore, the mix of loans with interest rate swaps continued to be heavily weighted towards LIHTC permanent loans. Future levels of swap fees are dependent upon the needs of our traditional commercial and LIHTC borrowers, and the size of the related nonrefundable swap fee may fluctuate depending on the interest rate environment.

The Company’s interest rate swap program consists of back-to-back interest rate swaps with two types of commercial borrowers: (1) traditional commercial loans of a certain minimum size and sophistication, and (2) LIHTC permanent loans. Most of the growth has been in the latter category as the Company has grown relationships with strong LIHTC developers with many years of experience. The LIHTC industry is strong and growing with an increased need for affordable housing. The back-to-back interest rate swaps allow commercial borrowers to pay a fixed interest rate while the Company receives a variable interest rate as well as an upfront nonrefundable fee dependent upon the pricing from an upstream counter party.

Earnings on BOLI increased 3%, comparing the second quarter of 2026 to the same period of the prior year and increased 29% when comparing the first six months of 2026 to the same period of the prior year. The increases were driven by BOLI exchanges in the first six months of 2025 resulting in surrender charges of $168 thousand. There were no purchases of BOLI in the first six months of 2026 or 2025. Notably, a portion of the Company's BOLI is variable rate whereby returns are determined by the performance of the equity markets. Management intends to continue to review its BOLI investments to be consistent with policy and regulatory limits in conjunction with the rest of its earning assets in an effort to maximize returns while minimizing risk.

Debit card fees are the interchange fees paid on certain debit card customer transactions. Debit card fees increased 6% when comparing the second quarter of 2026 to the same period of the prior year, and increased 9% when comparing the first six months of 2026 to the first six months of 2025. The Company continues to be successful in adding net new demand deposit accounts. The fees can vary based on customer debit card usage, so fluctuations from period to period may occur. As an opportunity to maximize fees, the Company offers a deposit product with a higher interest rate that incentivizes debit card activity.

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Correspondent banking fees increased 7% comparing the second quarter of 2026 to the same period of the prior year and increased 10% comparing the first six months of 2026 to the first six months of 2025. The increase was primarily due to an increase in correspondent banking balances. Fees from correspondent banks generally increase when non-interest bearing account balances decrease due to lower associated earnings credits. Correspondent banking continues to be a core strategy for the Company, as this line of business provides a high level of deposits that can be used to fund loan growth as well as a steady source of fee income. The Company now serves 188 banks in Iowa, Illinois, Missouri and Wisconsin.

Loan-related fee income decreased 3% comparing the second quarter of 2026 to the same period of the prior year, primarily due to lower loan participation service fees and increased 1% comparing the first six months of 2026 to the first six months of 2025, primarily due to higher participation service fees.

Fair value gains on derivatives and trading securities were $802 thousand in the second quarter of 2026, as compared to $230 thousand in gains in the same period of the prior year. Fair value losses on derivatives and trading securities were $67 thousand in the first six months of 2026, as compared to $777 thousand in losses in the first six months of 2025. The Company uses swaptions to manage interest rate risk related to the variability of interest payments due to changes in interest rates. These derivatives are unhedged and are marked-to-market, with gains or losses recorded in noninterest income which was a contributing factor in the decrease in fair value losses on derivatives. See Note 5 to the Consolidated Financial Statements for additional information.

Other noninterest income increased $6 thousand, or 3%, in the second quarter of 2026 as compared to the same period of the prior year, and increased $434 thousand, or 70% in the first six months of 2026 as compared to the first six months of 2025, due to fluctuations in the market value of the Company’s equity investments. Income on equity investments is largely determined based on the market value of the investments managed.

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NONINTEREST EXPENSE

The following tables set forth the various categories of noninterest expense for the three and six months ended June 30, 2026 and 2025:


		Three Months Ended
		June 30,			June 30,
		2026			2025			$ Change			% Change

		(dollars in thousands)

Salaries and employee benefits		$	32,120		$	28,474		$	3,646		12.8	%
Occupancy and equipment expense			7,342			6,837			505		7.4
Professional and data processing fees			5,597			6,089			(492)		(8.1)
FDIC insurance, other insurance and regulatory fees			1,973			1,960			13		0.7
Loan/lease expense			291			407			(116)		(28.5)
Net cost of (income from) and losses/(gains) on operations of other real estate			(11)			50			(61)		(122.0)
Advertising and marketing			1,822			1,746			76		4.4
Communication and data connectivity			243			274			(31)		(11.3)
Supplies			265			252			13		5.2
Bank service charges			711			720			(9)		(1.3)
Correspondent banking expense			335			314			21		6.7
Intangibles amortization			506			661			(155)		(23.4)
Payment card processing			496			547			(51)		(9.3)
Trust expense			455			413			42		10.2
Other			1,012			839			173		20.6
Total noninterest expense		$	53,157		$	49,583		$	3,574		7.2	%


		Six Months Ended
		June 30,			June 30,
		2026			2025			$ Change			% Change

		(dollars in thousands)

Salaries and employee benefits		$	63,509		$	55,838		$	7,671		13.7	%
Occupancy and equipment expense			14,821			13,292			1,529		11.5
Professional and data processing fees			10,759			11,233			(474)		(4.2)
FDIC insurance, other insurance and regulatory fees			4,045			3,930			115		2.9
Loan/lease expense			397			788			(391)		(49.6)
Net cost of and losses on operations of other real estate			5			41			(36)		(87.8)
Advertising and marketing			3,597			3,359			238		7.1
Communication and data connectivity			445			564			(119)		(21.1)
Supplies			498			459			39		8.5
Bank service charges			1,375			1,316			59		4.5
Correspondent banking expense			668			643			25		3.9
Intangibles amortization			1,012			1,322			(310)		(23.4)
Payment card processing			1,004			1,141			(137)		(12.0)
Trust expense			929			770			159		20.6
Other			2,218			1,426			792		55.5
Total noninterest expense		$	105,282		$	96,122		$	9,160		9.5	%

Management places a strong emphasis on overall cost containment and is committed to improving the Company's general efficiency and operating leverage as discussed in the “Strategic Financial Metrics” section.

Salaries and employee benefits, which is the largest component of noninterest expense, increased 13% when comparing the second quarter of 2026 to the same period of the prior year, and increased 14% when comparing the first six months of 2026 to the same period of the prior year primarily due to annual merit increases and capital markets revenue and its impact on variable compensation associated with performance.

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Occupancy and equipment expense increased 7% comparing the second quarter of 2026 to the same period of the prior year, and increased 12% when comparing the first six months of 2026 to the same period of the prior year due primarily to higher property tax expense and depreciation expense with the opening of new offices in the Cedar Rapids and Ankeny, Iowa markets.

Professional and data processing fees decreased 8% comparing the second quarter of 2026 to the same period of the prior year, and decreased 4% comparing the first six months of 2026 to the same period of the prior year. Generally, professional and data processing fees can fluctuate depending on certain one-time project costs. Management will continue to focus on minimizing such one-time costs and driving recurring costs down through contract negotiation or managed reduction in activity where costs are determined on a usage basis.

FDIC insurance, other insurance and regulatory fee expense remained stable when comparing the second quarter of 2026 to the same period of the prior year, and increased 3% when comparing the first six months of 2026 to the same period of the prior year due primarily to asset growth.

Loan/lease expense decreased 29% when comparing the second quarter of 2026 to the same period of the prior year, and decreased 50% when comparing the first six months of 2026 to the same period of the prior year due primarily to lower legal expense on loan workouts and higher recoveries of legal expenses incurred on loan workouts.

Net cost of (income from) and gains/losses on operations of other real estate includes gains/losses on the sale of OREO, write-downs of OREO and all income/expenses associated with OREO. Net income from and gains/losses on operations of other real estate for the second quarter of 2026 totaled $11 thousand, compared to net cost of and gains/losses on operations of other real estate of $50 thousand for the second quarter of 2025. Net cost of and gains/losses on operations of other real estate for the first six months of 2026 totaled $5 thousand, compared to net cost of and gains/losses on operations of other real estate of $41 thousand for the first six months of 2025.

Advertising and marketing expense increased 4% comparing the second quarter of 2026 to the same period of the prior year, and increased 7% comparing the first six months of 2026 to the same period of the prior year. The increase in expense was primarily due to an increase in other sales promotions.

Communication and data connectivity expense decreased 11% comparing the second quarter of 2026 to the same period of the prior year, and decreased 21% comparing the first six months of 2026 to the same period of the prior year. The decrease was primarily due to improvements to our data center connectivity channels and a reduction in cell phone and air card expenses as the Company continues to improve operational efficiencies.

Supplies expense increased 5% comparing the second quarter of 2026 to the same period of the prior year, and increased 9% comparing the first six months of 2026 to the same period of the prior year. These increases were primarily due to the timing of purchases.

Bank service charges, a large portion of which includes indirect costs incurred to provide services to QCBT's correspondent banking customer portfolio, decreased 1% when comparing the second quarter of 2026 to the same period of the prior year, and increased 5% when comparing the first six months of 2026 to the same period of the prior year. As transaction volumes and the number of correspondent banking clients fluctuate, the associated expenses are expected to also fluctuate.

Correspondent banking expense increased 7% when comparing the second quarter of 2026 to the same period of the prior year, and increased 4% when comparing the first six months of 2026 to the same period of the prior year. These are direct costs incurred to provide services to QCBT's correspondent banking customer portfolio, including safekeeping and cash management services.

Intangibles amortization expense decreased 23% when comparing the second quarter of 2026 to the same period of the prior year, and decreased 23% when comparing the first six months of 2026 to the same period of the prior year. The decreases across both periods were due to no longer needing to amortize an intangible at CSB as done in the prior year.

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These expenses are expected to naturally decrease as intangibles become fully amortized unless there is an addition to intangible assets.

Payment card processing expense decreased 9% when comparing the second quarter of 2026 to the same period of the prior year, and decreased 12% when comparing the first six months of 2026 to the same period of the prior year due to renegotiated debit card contracts.

Trust expense increased 10% when comparing the second quarter of 2026 to the same period of the prior year, and increased 21% when comparing the first six months of 2026 to the same period of the prior year due to increased assets under management when comparing June 30, 2026 to June 30, 2025.

Other noninterest expense increased 21% when comparing the second quarter of 2026 to the same period of the prior year, and increased 56% when comparing the first six months of 2026 to the same period of the prior year. The increases across both periods were primarily due to taxes on stock repurchases in 2026. Included in other noninterest expense are items such as meals and entertainment, subscriptions and sales and use tax.

INCOME TAXES

In the second quarter of 2026, the Company incurred income tax expense of $3.2 million, compared to income tax expense of $1.6 million in the same period of the prior year. During the first six months of 2026, the Company incurred income tax expense of $5.7 million, compared to income tax expense of $1.9 million in the first six months of 2025. The increase was primarily due to higher pre-tax income from higher capital markets revenue.

Refer to the reconciliation of the expected income tax rate to the effective tax rate that is included in Note 6 to the Consolidated Financial Statements for additional detail.

FINANCIAL CONDITION

Following is a table that represents the major categories of the Company’s balance sheet:


		As of
		June 30, 2026					March 31, 2026					December 31, 2025						June 30, 2025

		(dollars in thousands)

		Amount			%		Amount			%		Amount			%			Amount			%
Cash, federal funds sold, and interest-bearing deposits		$	191,750		2	%	$	119,328		1	%	$	152,893		2	%		$	194,889		3	%
Securities			1,401,408		15	%		1,324,750		14	%		1,312,310		14	%			1,263,452		14	%
Net loans/leases			6,945,745		73	%		7,200,041		75	%		7,076,828		74	%			6,836,192		74	%
Derivatives			211,178		2	%		209,836		2	%		188,409		2	%			187,740		2	%
Other assets			770,562		8	%		759,740		8	%		767,754		8	%			697,494		7	%
Total assets		$	9,520,643		100	%	$	9,613,695		100	%	$	9,498,194		100	%		$	9,179,767		100	%

Total deposits		$	7,417,334		78	%	$	7,770,850		80	%	$	7,414,198		77	%		$	7,318,353		79	%
Total borrowings			660,315		7	%		418,257		4	%		638,541		7	%			509,359		6	%
Derivatives			131,921		1	%		149,836		2	%		137,051		2	%			146,941		2	%
Other liabilities			161,316		2	%		152,288		2	%		196,093		2	%			154,560		2	%
Total stockholders' equity			1,149,757		12	%		1,122,464		12	%		1,112,311		12	%			1,050,554		11	%
Total liabilities and stockholders' equity		$	9,520,643		100	%	$	9,613,695		100	%	$	9,498,194		100	%		$	9,179,767		100	%

During the second quarter of 2026, the Company's total assets decreased $93.1 million from March 31, 2026, to a total of $9.5 billion. The Company’s net loans/leases decreased $254.3 million, or 4%, in the second quarter of 2026. Deposits decreased $353.5 million, or 5%, during the second quarter of 2026. Borrowings increased $242.1 million, or 58%, during the second quarter of 2026 due primarily to a decrease in deposits. The Company actively managed down higher cost deposits off in anticipation of the liquidity generated by the loan securitization and LIHTC offtake transactions.

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INVESTMENT SECURITIES

The composition of the Company’s securities portfolio is managed to meet liquidity needs while prioritizing the impact on interest rate risk, maximizing return and minimizing credit risk. In recent years, the Company has continued to shift the mix of the portfolio by decreasing U.S. government sponsored agency securities, while increasing tax-exempt municipal securities. Of the latter, the large majority are privately placed tax-exempt debt issuances by municipalities located in the Midwest (with some in or near the Company’s existing markets) that require a thorough underwriting process before investment and are generated by our specialty finance group.

Trading securities had a fair value of $116.0 million as of June 30, 2026 and consisted of retained beneficial interests acquired in conjunction with loan securitizations completed by the Company in prior years. See also Note 4 to the Consolidated Financial Statements for details of these securitizations.

Following is a breakdown of the Company's securities portfolio by type, the percentage of net unrealized gains (losses) to carrying value on the total portfolio, and the portfolio duration:


		As of
		June 30, 2026					March 31, 2026					December 31, 2025					June 30, 2025
		Amount			%		Amount			%		Amount			%		Amount			%

		(dollars in thousands)

U.S. treasuries and govt. sponsored agency securities		$	13,928		1	%	$	15,059		1	%	$	16,024		1	%	$	14,267		1	%
Municipal securities			1,126,056		80	%		1,081,102		81	%		1,081,002		82	%		1,033,642		81	%
Residential mortgage-backed and related securities			88,515		6	%		86,222		7	%		68,855		5	%		58,864		5	%
Asset-backed securities			3,769		1	%		4,076		1	%		4,439		1	%		6,684		1	%
Other securities			53,455		4	%		55,845		4	%		58,133		5	%		67,358		5	%
Trading securities			115,967		8	%		82,728		6	%		83,857		6	%		82,900		7	%
		$	1,401,690		100	%	$	1,325,032		100	%	$	1,312,310		100	%	$	1,263,715		100	%

Securities as a % of total assets			14.72	%				13.78	%				13.82	%				13.67	%
Net unrealized losses as a % of Amortized Cost			(12.22)	%				(12.48)	%				(10.82)	%				(13.20)	%
Duration (in years)			5.2					5.2					5.4					5.6
Annual yield on investment securities (tax equivalent)			5.73	%				5.62	%				4.77	%				5.46	%

The Company has not invested in non-agency commercial or residential mortgage-backed securities or pooled trust preferred securities. See Note 2 to the Consolidated Financial Statements for additional information regarding the Company's investment securities.

LOANS/LEASES

Total loans/leases grew 10% on an annualized basis, when adding back the impact from the runoff of m2 loans and leases and excluding the LIHTC loan offtake transactions and securitization during the first six months of 2026. The mix of the loan/lease classes within the Company's loan/lease portfolio is presented in the following table:


		As of
		June 30, 2026					March 31, 2026					December 31, 2025					June 30, 2025
		Amount			%		Amount			%		Amount			%		Amount			%

		(dollars in thousands)

C&I - revolving*		$	407,419		6	%	$	376,284		5	%	$	384,656		5	%	$	380,029		5	%
C&I - other			1,209,913		17	%		1,296,273		18	%		1,318,866		18	%		1,375,689		20	%
CRE - owner occupied			589,928		8	%		588,098		8	%		577,352		8	%		593,675		9	%
CRE - non-owner occupied			966,873		14	%		1,000,673		14	%		1,036,655		15	%		1,036,049		15	%
Construction and land development*			1,205,553		17	%		1,301,630		18	%		1,308,422		18	%		1,529,022		22	%
Multi-family*			1,871,240		27	%		1,937,922		27	%		1,769,331		25	%		1,251,763		18	%
Direct financing leases			6,382		-	%		7,947		-	%		9,533		-	%		12,880		-	%
1-4 family real estate			613,664		9	%		618,973		8	%		603,683		9	%		592,253		9	%
Consumer			161,958		2	%		157,700		2	%		158,457		2	%		153,564		2	%
Total loans/leases		$	7,032,930		100	%	$	7,285,500		100	%	$	7,166,955		100	%	$	6,924,924		100	%
Less allowance			(87,185)					(85,459)					(90,127)					(88,732)
Net loans/leases		$	6,945,745				$	7,200,041				$	7,076,828				$	6,836,192

* As of June 30, 2026, there were no LIHTC loans held for sale in preparation for securitization or LIHTC loan sale. As of March 31, 2026, there were LIHTC multi-family loans held for sale in preparation for securitization totaling $315.6 million and C&I – other loans and construction loans

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totaling $129.6 million and $77.7 million, respectively, held for sale in preparation for a LIHTC loan sale. There were no loans held for sale in preparation for securitization or LIHTC loan sales at December 31, 2025 or June 30, 2025. All loans held for sale are performing and pass rated.

CRE loans are predominantly included within the CRE – owner occupied, CRE – non-owner occupied, construction and land development and multi-family loan classes, however, CRE loans can also be included in 1-4 family based on nature of the loan. As CRE loans have historically been the Company's largest portfolio segment, management places a strong emphasis on the underwriting and monitoring of the characteristics and composition of the Company's CRE loan portfolio. For example, management tracks the level of owner-occupied CRE loans relative to non-owner-occupied loans because owner-occupied loans are generally considered to have less risk. Additionally, the Company reviews CRE concentrations by industry in relation to risk-based capital on a quarterly basis. At June 30, 2026, approximately 44% of the CRE loan portfolio consisted of LIHTC loans, all of which are performing and all of which are pass rated.

Historically, the Company structures most residential real estate loans to conform to the underwriting requirements of Freddie Mac and Fannie Mae to allow the subsidiary banks to resell the loans on the secondary market to avoid the interest rate risk associated with longer term fixed rate loans and to recognize noninterest income from the gain on sale. Loans originated for this purpose were classified as held for sale and are included in the residential real estate loans in the table above. Historically, the subsidiary banks structure most loans that will not conform to the underwriting requirements of Freddie Mac and Fannie Mae as adjustable-rate mortgages that mature or adjust in one to five years, and then retain these loans in their respective portfolios. The Company also holds 15-year fixed rate residential real estate loans originated in prior years that met certain credit guidelines. The Company has not originated any subprime, Alt-A, no documentation, or stated income residential real estate loans throughout its history.

The following is a listing of significant industries within the Company's CRE loan portfolio. These include loans in the following portfolio segments as of June 30, 2026: CRE owner occupied, CRE non-owner occupied, certain construction and land development, multifamily and certain 1-4 family real estate. Within the CRE Loan portfolio, there is a low amount of office exposure, totaling $219.0 million, or 3.1%, of total loans at June 30, 2026.


		As of June 30,					As of December 31,					As of June 30,
		2026					2025					2025
		Amount			%		Amount			%		Amount			%

		(dollars in thousands)

Lessors of residential buildings - LIHTC		$	2,118,518		44	%	$	2,196,023		46	%	$	2,057,244		45	%
Lessors of nonresidential buildings			663,083		14	%		712,429		15	%		701,754		15	%
Lessors of residential buildings - non LIHTC			617,254		13	%		481,979		10	%		507,213		11	%
Hotels			193,810		3	%		182,383		4	%		131,404		3	%
New housing for-sale builders			84,771		2	%		89,011		2	%		69,926		1	%
Other *			1,164,969		24	%		1,129,364		23	%		1,149,458		25	%
Other - LIHTC			5,723		-	%		9,167		-	%		1,442		-	%
Total CRE loans		$	4,848,128		100	%	$	4,800,356		100	%	$	4,618,441		100	%

* “Other” consists of all other industries. None of these had concentrations greater than $67.8 million, or approximately 1.4% of total CRE loans in the most recent period presented.

The following table reflects credit quality indicators and performance of the Company’s CRE loan portfolio:


	As of June 30,											As of March 31,											As of December 31,
	2026											2026											2025
	Delinquency Status*									% of		Delinquency Status*									% of		Delinquency Status*									% of
	Performing			Nonperforming			Total			CRE		Performing				Nonperforming		Total			CRE		Performing				Nonperforming		Total			CRE

	(dollars in thousands)

Pass	$	4,782,761		$	—		$	4,782,761		98	%	$	4,870,668		$	—		$	4,870,668		98	%	$	4,729,162		$	37		$	4,729,199		98	%
Special Mention		26,315			—			26,315		1	%		40,790			—			40,790		1	%		34,712			—			34,712		1	%
Substandard		26,864			12,188			39,052		1	%		26,793			11,607			38,400		1	%		26,923			9,522			36,445		1	%
Doubtful		—			—			—		0	%		—			—			—		0	%		—			—			—		0	%
	$	4,835,940		$	12,188		$	4,848,128		100	%	$	4,938,251		$	11,607		$	4,949,858		100	%	$	4,790,797		$	9,559		$	4,800,356		100	%

As a percentage of total CRE portfolio		99.75	%		0.25	%		100	%				99.77	%		0.23	%		100	%				99.80	%		0.20	%		100	%

* Performing = CRE loans accruing and less than 90 days past due. Nonperforming = CRE loans on nonaccrual and accruing CRE loans that are greater than or equal to 90 days past due.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

The Company’s construction and land development loan portfolio includes the following:


	As of
	June 30, 2026				December 31, 2025				June 30, 2025
	Amount		%		Amount		%		Amount		%

	(dollars in thousands)

LIHTC construction	$	574,644	48	%	$	741,531	56	%	$	1,075,000	70	%
Construction (commercial)		560,283	46	%		486,156	37	%		366,303	24	%
Land development		60,246	5	%		73,732	6	%		78,530	5	%
Construction (non-commercial residential)		10,380	1	%		7,003	1	%		9,189	1	%
Total construction and land development	$	1,205,553	100	%	$	1,308,422	100	%	$	1,529,022	100	%

The Company's 1-4 family real estate loan portfolio includes the following:

●

Certain loans that do not meet the criteria for sale into the secondary market. These are often structured as adjustable rate mortgages with maturities ranging from three to seven years to avoid long-term interest rate risk.

●

A limited amount of 15-year, 20-year and 30-year fixed rate residential real estate loans that meet certain credit guidelines.

The remaining 1-4 family real estate loans originated by the Company were sold on the secondary market to avoid the interest rate risk associated with longer term fixed rate loans and to recognize noninterest income from the gain on sale. Loans originated for this purpose were classified as held for sale and are included in the residential real estate loans above.

Following is a listing of significant equipment types within the m2 loan and lease portfolio:


	As of June 30,					As of March 31,					As of December 31,					As of June 30,
	2026					2026					2025					2025
	Amount			%		Amount			%		Amount			%		Amount			%

	(dollars in thousands)

Trucks, Vans and Vocational Vehicles	$	30,687		23	%	$	36,893		23	%	$	43,097		23	%	$	57,120		23	%
Construction - General		11,587		9	%		13,083		8	%		15,105		8	%		20,003		8	%
Computer Equipment		8,378		6	%		9,458		6	%		10,505		6	%		13,883		6	%
Tractors		7,592		6	%		8,882		6	%		10,465		6	%		14,082		6	%
Trailers		7,555		6	%		8,998		6	%		10,613		6	%		14,624		6	%
Marine Travelift		7,442		5	%		8,407		5	%		9,068		5	%		10,733		4	%
Manufacturing - General		6,091		5	%		7,180		4	%		8,472		5	%		11,577		5	%
Food Processing Equipment		6,069		4	%		8,324		5	%		9,431		5	%		12,578		5	%
Manufacturing - CNC		4,028		3	%		4,633		3	%		5,506		3	%		6,904		3	%
Concrete Equipment		3,864		3	%		4,281		3	%		4,662		2	%		5,528		2	%
Forklifts		3,497		3	%		4,037		3	%		4,507		2	%		5,645		2	%
Freightliners		3,368		2	%		4,422		3	%		5,602		3	%		8,811		3	%
Other *		34,906		25	%		42,277		25	%		50,607		26	%		68,529		27	%
Total m2 loans and leases	$	135,064		100	%	$	160,875		100	%	$	187,640		100	%	$	250,017		100	%

* “Other” consists of all other equipment types. None of these had concentrations greater than 3% of total m2 loan and lease portfolio in the most recent period presented.

See Note 3 to the Consolidated Financial Statements for additional information regarding the Company's loan and lease portfolio.

ALLOWANCE FOR CREDIT LOSSES ON LOANS/LEASES AND OFF-BALANCE SHEET EXPOSURES

The adequacy of the ACL was determined by management based on numerous factors, including the overall composition of the loan/lease portfolio, types of loans/leases, historical loss experience, loan/lease delinquencies, potential substandard and doubtful credits, economic conditions, collateral positions, government guarantees and other factors that, in management's judgment, deserved evaluation. To ensure that an adequate ACL was maintained, provisions were made based on a number of factors, including the increase in loans/leases and a detailed analysis of the loan/lease portfolio. The loan/lease portfolio is reviewed and analyzed quarterly with specific detailed reviews completed on all credits risk-rated less than “fair quality,” and carrying aggregate exposure in excess of $250 thousand. The adequacy of the allowance is monitored by the credit administration staff and reported to management and the board of directors.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

Changes in the ACL for loans/leases for the three and six months ended June 30, 2026 and 2025 are presented as follows:


	Three Months Ended						Six Months Ended
	June 30, 2026			June 30, 2025			June 30, 2026		June 30, 2025

	(dollars in thousands)

Balance, beginning	$	85,459		$	90,354		$	90,127	$	89,841
Change in ACL for the transfer of loans to LHFS		374			—			(3,076)		—
Provision		4,652			4,667			7,340		9,410
Charge-offs		(3,573)			(6,490)			(8,020)		(11,434)
Recoveries		273			201			814		915
Balance, ending	$	87,185		$	88,732		$	87,185	$	88,732

Changes in the ACL for OBS exposures for the three and six months ended June 30, 2026 and 2025 are presented as follows:


	Three Months Ended				Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025

	(dollars in thousands)

Balance, beginning	$	6,904	$	7,764	$	7,138	$	8,273
Provisions (credited) to expense		56		(624)		(178)		(1,133)
Balance, ending	$	6,960	$	7,140	$	6,960	$	7,140

The Company recorded a negative provision on credit losses related to OBS exposures in the second quarter of 2026 of $56 thousand and negative provision of $178 thousand for the first six months of 2026. The balance primarily fluctuates with changes in the balance of unfunded commitments. At June 30, 2026, the allowance for OBS exposures was $6.7 million.

The Company's levels of criticized and classified loans are reported in the following table:


		As of
Internally Assigned Risk Rating *		June 30, 2026			March 31, 2026			December 31, 2025			June 30, 2025

		(dollars in thousands)

Special Mention		$	69,706		$	82,819		$	74,765		$	68,621
Substandard/Classified loans***			64,519			63,491			64,142			81,040
Doubtful/Classified loans***			—			—			—			—
Criticized Loans **		$	134,225		$	146,310		$	138,907		$	149,661


Criticized Loans as a % of Total Loans/Leases			1.91	%		2.01	%		1.94	%		2.16	%
Classified Loans as a % of Total Loans/Leases			0.92	%		0.87	%		0.89	%		1.17	%

* Amounts above include the government guaranteed portion, if any. For the calculation of ACL, the Company assigns internal risk ratings of Pass (Rating 2) for the government guaranteed portion.

** Criticized loans are defined as loans except for direct financing leases and equipment financing agreements with internally assigned risk ratings of 9, 10, or 11, regardless of performance.

*** Classified loans are defined as loans except for direct financing leases and equipment financing agreements with internally assigned risk ratings of 10 or 11, regardless of performance.

Criticized loans as a percentage of loans and leases decreased from 2.01% at March 31 2026 to 1.91% at June 30, 2026 primarily due to payoffs on two large loans, while classified loans as a percentage of loans and leases increased to 0.92% at June 30, 2026 from 0.87% at March 31, 2026 primarily due to the downgrade of one loan. The Company continues its strong focus on improving credit quality in an effort to limit NPLs.

The following table summarizes the trend in allowance as a percentage of gross loans/leases and as a percentage of NPLs:


		As of
		June 30, 2026		March 31, 2026		December 31, 2025		June 30, 2025
ACL for loans/leases / Total loans/leases held for investment		1.24	%	1.26	%	1.26	%	1.28	%
ACL for loans/leases / NPLs		222.75	%	204.16	%	213.08	%	208.84	%

Although management believes that the ACL at June 30, 2026 was at a level adequate to absorb losses on existing loans/leases, there can be no assurance that such losses will not exceed the estimated amounts or that the Company will

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

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not be required to make additional provisions in the future. Unpredictable future events could adversely affect cash flows for both commercial and individual borrowers, which could cause the Company to experience increases in problem assets, delinquencies and losses on loans/leases, and require further increases in the provision for credit losses. Asset quality remains a cornerstone of the Company’s strategy. Sustainable, profitable growth depends on maintaining that quality. The Company consistently directs focused efforts across its subsidiary banks and equipment financing company to strengthen and improve the overall loan/lease portfolio.

See Note 3 to the Consolidated Financial Statements for additional information regarding the Company's ACL.

NONPERFORMING ASSETS

The table below presents the amount of NPAs and related ratios:




	As of
	June 30, 2026			March 31, 2026			December 31, 2025			June 30, 2025

	(dollars in thousands)

Nonaccrual loans/leases (1)	$	39,139		$	41,823		$	42,212		$	42,482
Accruing loans/leases past due 90 days or more		1			35			85			7
Total NPLs		39,140			41,858			42,297			42,489
OREO		350			540			540			62
Other repossessed assets		20			500			500			113
Total NPAs	$	39,510		$	42,898		$	43,337		$	42,664


NPLs to total loans/leases		0.56	%		0.57	%		0.59	%		0.62	%
NPAs to total loans/leases plus repossessed property		0.56	%		0.59	%		0.60	%		0.06	%
NPAs to total assets		0.41	%		0.45	%		0.45	%		0.46	%
Nonaccrual loans/leases to total loans/leases		0.56	%		0.57	%		0.59	%		0.61	%
ACL to nonaccrual loans		222.76	%		204.33	%		213.51	%		208.84	%

(1)

Includes government guaranteed portion of loans, as applicable.

NPAs at June 30, 2026 were $39.5 million, a decrease of $3.4 million from March 31, 2026, and a decrease of $3.2 million from June 30, 2025. The ratio of NPAs to total assets was 0.41% at June 30, 2026 and 0.45% at March 31, 2026, compared to 0.46% at June 30, 2025.

The majority of the NPAs consist of nonaccrual loans/leases. For nonaccrual loans/leases, management has thoroughly reviewed these loans/leases and has provided specific allowances as appropriate.

OREO and other repossessed assets are carried at the lower of carrying amount or fair value less costs to sell.

The policy of the Company is to place a loan/lease on nonaccrual status if: (a) payment in full of interest or principal is not expected; or (b) principal or interest has been in default for a period of 90 days or more unless the obligation is both in the process of collection and well secured. A loan/lease is well secured if it is secured by collateral with sufficient market value to repay principal and all accrued interest. A debt is in the process of collection if collection of the debt is proceeding in due course either through legal action, including judgment enforcement procedures, or in appropriate circumstances, through collection efforts not involving legal action which are reasonably expected to result in repayment of the debt or in its restoration to current status.

The Company's lending/leasing practices remain unchanged and asset quality remains a top priority for management.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

DEPOSITS

Total deposits decreased by $353.5 million during the second quarter of 2026. The Company actively managed higher cost deposits off in anticipation of the liquidity generated by the loan securitization and offtake transactions.

The table below presents the composition of the Company's deposit portfolio:


		As of
		June 30, 2026					March 31, 2026					December 31, 2025					June 30, 2025
		Amount			%		Amount			%		Amount			%		Amount			%

		(dollars in thousands)

Noninterest bearing demand deposits		$	1,022,346		14	%	$	987,514		13	%	$	950,977		13	%	$	952,032		13	%
Interest bearing demand deposits			5,399,818		73	%		5,629,924		72	%		5,190,974		70	%		5,087,783		70	%
Time deposits			840,346		11	%		968,914		12	%		1,035,317		14	%		974,341		13	%
Brokered deposits			154,824		2	%		184,498		2	%		236,930		3	%		304,197		4	%
		$	7,417,334		100	%	$	7,770,850		100	%	$	7,414,198		100	%	$	7,318,353		100	%

The Company actively participates in the ICS/CDARS program, a trusted resource that provides FDIC insurance coverage for clients that maintain larger deposit balances. Deposits in the ICS/CDARS program (which are included in interest-bearing deposits and time deposits in the preceding table) totaled $2.4 billion, or 31.7% of all deposits, as of June 30, 2026.

The Company’s correspondent bank deposit portfolio and funds managed consists of the following:

●

Noninterest-bearing deposits which represent correspondent banks’ operating cash used for processing transactions with the Federal Reserve,

●

Money market deposits which represent excess liquidity, and

●

EBA balances of the correspondent banks at the FRB.

The Company had total uninsured and uncollateralized deposits of $1.9 billion and $1.5 billion as of June 30, 2026 and 2025, respectively.

Management will continue to focus on growing its core deposit portfolio, including its correspondent banking business at QCBT, as well as shifting the mix from brokered and other higher cost deposits to lower cost core deposits. With the significant success achieved by QCBT in growing its correspondent banking business, QCBT has developed procedures to proactively monitor this industry concentration of deposits and loans. Other deposit-related industry concentrations and large accounts are monitored by the internal asset liability management committees.

BORROWINGS

The subsidiary banks purchase federal funds for short-term funding needs from the FRB or from their correspondent banks. The table below presents the composition of the Company's short-term borrowings:


		As of
		June 30, 2026			March 31, 2026		December 31, 2025			June 30, 2025

		(dollars in thousands)

Federal funds purchased		$	8,907		$	1,950	$	2,650		$	1,350

The Company's federal funds purchased fluctuate based on the short-term funding needs of the Company's subsidiary banks.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

As a result of their memberships in the FHLB of Des Moines, the subsidiary banks have the ability to borrow funds for short or long-term purposes under a variety of programs. The subsidiary banks can utilize FHLB advances for loan matching as a hedge against the possibility of changing interest rates and when these advances provide a less costly or more readily available source of funds than customer deposits.

The table below presents the Company's FHLB advances as of the periods indicated:


		As of
		June 30, 2026		March 31, 2026		December 31, 2025			June 30, 2025
		(dollars in thousands)

Term FHLB advances		$	10,609	$	10,609	$	10,383		$	145,383
Overnight FHLB advances			258,000		15,000		235,000			80,000
		$	268,609	$	25,609	$	245,383		$	225,383

The Company had an increase in overnight FHLB advances of $243.0 million from March 31, 2026 to June 30, 2026. The increase was primarily due to funding needs from strong loan growth during the second quarter of 2026 and managing down higher cost deposits.

It is management's intention to reduce its reliance on wholesale funding, including FHLB advances and brokered deposits. Replacement of this funding with core deposits helps to reduce interest expense as wholesale funding tends to be higher cost. However, the Company may choose to utilize advances and/or brokered deposits to supplement funding needs, as this is a way for the Company to effectively and efficiently manage interest rate risk.

The table below presents the maturity schedule including weighted average interest cost for the Company's combined wholesale funding portfolio (defined as FHLB advances and brokered deposits):


		June 30, 2026					December 31, 2025
					Weighted					Weighted
					Average					Average
Maturity:		Amount Due			Interest Rate		Amount Due			Interest Rate

		(dollars in thousands)
Year ending December 31:
2026		$	261,305		3.97	%	$	320,520		4.02	%
2027			42,379		4.05			42,348		4.05
2028			52,557		3.99			52,519		3.99
2029			66,966		3.30			66,926		3.30
2030			—		—			—		—
Thereafter			226		0.00			—		—
Total Wholesale Funding		$	423,433		3.88	%	$	482,313		3.92	%

During the first six months of 2026, wholesale funding decreased $58.9 million due to deposit growth.

The Company renewed its revolving credit note in the second quarter of 2026. At renewal, the available amount under the line of credit remained at $60.0 million for which there was no outstanding balance as of June 30, 2026. Interest on the revolving line of credit is calculated at the greater of: (a) the effective Prime Rate less 0.50%, or (b) 3.00% per annum. The collateral on the revolving line of credit is 100% of the outstanding stock of each of the Company’s bank subsidiaries.

The Company had other borrowings totaling $99.4 million as of June 30, 2026. In August 2025, the Company pledged a portion of its HTM municipal securities in exchange for term borrowings through a repurchase agreement. The repurchase agreements are reported as secured borrowings as we maintain effective control of the financed assets.

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Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

The Company had subordinated notes totaling $234.3 million and $233.7 million as of June 30, 2026 and 2025, respectively.

The Company had junior subordinated debentures totaling $49.1 million and $48.9 million as of June 30, 2026 and 2025, respectively.

STOCKHOLDERS' EQUITY

The table below presents the composition of the Company's stockholders' equity:


		As of
		June 30, 2026			March 31, 2026			December 31, 2025			June 30, 2025

		(dollars in thousands)

Common stock		$	16,367		$	16,496		$	16,691		$	16,935
Additional paid in capital			367,018			368,522			372,851			376,571
Retained earnings			814,481			789,909			773,353			717,956
AOCI			(48,109)			(52,463)			(50,584)			(60,908)
Total stockholders' equity		$	1,149,757		$	1,122,464		$	1,112,311		$	1,050,554

TCE / TA ratio (non-GAAP)*			10.71	%		10.31	%		10.33	%		9.92	%

* TCE/TA ratio is defined as total common stockholders' equity excluding goodwill and other intangibles divided by total assets. This ratio is a non-GAAP financial measure. See GAAP to Non-GAAP Reconciliations.

As of June 30, 2026 and 2025, no preferred stock was outstanding.

On October 20, 2025, the board of directors of the Company approved a new share repurchase program under which the Company is authorized to repurchase, from time to time as the Company deems appropriate, of up to 1,700,000 shares of its common stock, or approximately 10% of the outstanding shares as of September 30, 2025. The new share repurchase program does not have an expiration date. The share repurchase program does not obligate the Company to repurchase any shares of its common stock, and other than repurchases that have been completed to date, there is no assurance that the Company will do so. Under the share repurchase program, the Company may repurchase shares of common stock from time to time in open market or privately negotiated transactions. The number, timing and price of shares repurchased will depend on a number of factors, including business and market conditions, regulatory requirements, availability of funds, and other factors, including opportunities to deploy the Company's capital. The Company may, in its discretion, begin, suspend or terminate repurchases at any time prior to the program’s expiration, without any prior notice.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity measures the ability of the Company to meet maturing obligations and its existing commitments, to withstand fluctuations in deposit levels, to fund its operations, and to provide for customer credit needs. The Company monitors liquidity risk through contingency planning stress testing on a regular basis. The Company seeks to avoid an over-concentration of funding sources and to establish and maintain contingent funding facilities that can be drawn upon if normal funding sources become unavailable. One source of liquidity is cash and short-term assets, such as interest-bearing deposits in other banks and federal funds sold, which totaled $191.8 million and $250.5 million at June 30, 2026 and 2025, respectively. The Company’s on-balance sheet liquidity position can fluctuate based on short-term activity in deposits and loans.

The subsidiary banks have a variety of sources of short-term liquidity available to them, including federal funds purchased from correspondent banks, FHLB advances, wholesale structured repurchase agreements, brokered deposits, lines of credit, borrowing at the Federal Reserve Discount Window, sales of securities AFS, and loan/lease participations or sales. The Company also generates liquidity from the regular principal payments and prepayments made on its loan/lease portfolio and on the regular monthly payments on its securities portfolio.

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Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

At June 30, 2026, the subsidiary banks had 26 lines of credit totaling $929.8 million with upstream correspondent banks, of which $489.0 million was secured and $440.8 million was unsecured. At June 30, 2026, the Company had the full $929.8 million available under these lines of credit.

At December 31, 2025, the subsidiary banks had 26 lines of credit totaling $930.7 million, of which $489.9 million was secured and $440.8 million was unsecured. At December 31, 2025, $930.7 million was available under these lines of credit.

The Company has emphasized growing the number and amount of available lines of credit in an effort to strengthen this contingent source of liquidity. Additionally, the Company maintains a $60.0 million secured revolving credit note with a variable interest rate and a maturity of June 30, 2027. At June 30, 2026, the full $60.0 million was available.

As of June 30, 2026, the Company had $1.0 billion in actual correspondent banking deposits spread over 188 relationships. While the Company believes that these funds are relatively stable, there is the potential for large fluctuations that can impact liquidity. Seasonality and the liquidity needs of these correspondent banks can impact balances. Management closely monitors these fluctuations and runs stress scenarios to measure the impact on liquidity and interest rate risk with various levels of correspondent deposit run-off.

Investing activities used cash of $429.7 million during the first six months of 2026, compared to $220.1 million for the same period of 2025. The net decrease in federal funds sold was $3.5 million for the first six months of 2026, compared to a net decrease of $150 thousand for the same period of 2025. The net increase in interest-bearing deposits at financial institutions was $32.8 million for the first six months of 2026, compared to a net decrease of $24.7 million for the same period of 2025. Proceeds from calls, maturities, and paydowns of securities were $41.2 million for the first six months of 2026, compared to $48.6 million for the same period of 2025. Purchases of securities used cash of $95.8 million for the first six months of 2026, compared to $119.9 million for the same period of 2025. There were no proceeds from the sale of securities for the first six months of 2026 and 2025. The net increase in loans/leases used cash of $318.8 million for the first six months of 2026 compared to a net increase in loans of $149.8 million for the same period of 2025.

Financing activities used cash of $11.3 million for the first six months of 2026, compared to cash provided by financing activities of $194.4 million for same period of 2025. Net increases in deposits totaled $3.1 million for the first six months of 2026, compared to net increases in deposits of $257.2 million for the same period of 2025. During the first six months of 2026, the Company's short-term borrowings increased $6.3 million compared to a decrease in short-term borrowings of $450 thousand for the same period of 2025. Net increase in overnight advances totaled $23.0 million for the first six months of 2026 as compared to net decrease of $60.0 million for the same period of 2025. Payments on other borrowings totaled $8.2 million for the first six months of 2026. There were no payments on other borrowings during the first six months of 2025. Repurchase and cancellation of shares in the first six months of 2026 totaled $34.3 million, as compared to no repurchase and cancellation of shares in the first six months of 2025.

Total cash provided by operating activities was $475.9 million for the first six months of 2026, compared to net cash provided by operating activities of $38.7 million for the same period of 2025.

Throughout its history, the Company has secured additional capital through various sources, including the issuance of common and preferred stock, as well as trust preferred securities and subordinated notes.

As of June 30, 2026 and December 31, 2025, the subsidiary banks remained “well-capitalized” in accordance with regulatory capital requirements administered by the federal banking authorities. Refer to Note 10 of the Consolidated Financial Statements for additional information regarding regulatory capital.

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Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

SPECIAL NOTE CONCERNING FORWARD-LOOKING STATEMENTS

This document (including information incorporated by reference) contains, and future oral and written statements of the Company and its management may contain, forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in 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,” “bode,” “predict,” “suggest,” “project,” “appear,” “plan,” “intend,” “estimate,” “annualize,” “may,” “will,” “would,” “could,” “should,” “likely,” “might,” “potential,” “continue,” “annualized,” “target,” “outlook,” as well as the negative forms of those words 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.

Forward-looking statements are not historical facts but instead represent management’s current expectations and forecasts regarding future events, many of which are inherently uncertain and outside of our control. Actual results may differ, possibly materially, from those currently expected or projected in these forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated or implied by forward-looking statements. 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, but are not limited to:

●

The strength of the local, state, national and international economies and financial markets, including effects of inflationary pressures, global energy market conditions, the threat or implementation of tariffs, immigration enforcement and changes in foreign policy.

●

Changes in, and the interpretation and prioritization of, local, state and federal laws, regulations and governmental policies, including executive orders.

●

The economic impact of any future terrorist threats and attacks, widespread disease or pandemics, military conflicts, acts of war or threats thereof (including the Russian invasion of Ukraine, ongoing conflicts in the Middle East, and other adverse external events that can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, affect global supply chains, increase the volatility of financial markets, and other matters beyond our control), and the response of the local, state and national governments to any such adverse external events.

●

New or revised accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB, the SEC or the PCAOB.

●

The imposition of tariffs or other governmental policies impacting the value of products produced by the Company’s commercial borrowers.

●

Increased competition in the financial services sector, including from non-bank competitors such as credit unions, private credit firms, fintech companies, and digital asset service providers, and the inability to attract new customers.

●

Rapid technological changes implemented by us and our third-party vendors, including the development and implementation of tools incorporating artificial intelligence.

●

Unexpected results of acquisitions, including failure to realize the anticipated benefits of the acquisitions and the possibility that transaction and integration costs may be greater than anticipated.

●

The loss of key executives and employees, talent shortages and employee turnover.

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Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

●

Changes in consumer spending.

●

Unexpected outcomes and costs of existing or new litigation or other legal proceedings and regulatory actions involving the Company.

●

The economic impact on the Company and its customers of climate change, natural disasters and exceptional weather occurrences such as tornadoes, floods and blizzards.

●

Fluctuations in the value of securities held in our securities portfolio, including as a result of changes in interest rates.

●

Credit risk and risks from concentrations (by type of borrower, geographic area, collateral and industry) within our loan portfolio and large loans to certain borrowers (including CRE loans).

●

The overall health of the local and national real estate market.

●

The ability to maintain an adequate level of allowance for credit losses on loans.

●

The concentration of large deposits from certain clients who have balances above current FDIC insurance limits and who may withdraw deposits to diversify their exposure.

●

The ability to successfully manage liquidity risk, which may increase dependence on non-core funding sources such as brokered deposits, and may negatively impact the Company’s cost of funds.

●

The level of non-performing assets on our balance sheet.

●

Interruptions involving our information technology and communications systems or third-party servicers.

●

The occurrence of fraudulent activity, breaches or failures of the Company’s or our third-party vendors’ information security controls or cybersecurity-related incidents, including as a result of sophisticated attacks using artificial intelligence and similar tools or as a result of insider fraud.

●

Emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action, damage our reputation or otherwise materially harm our business or customers.

●

Changes in the interest rates and repayment rates of the Company’s assets.

●

The effectiveness of our risk management framework.

●

The ability of the Company to manage the risks associated with the foregoing.

These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. For a discussion of the factors that could have a material adverse effect on the operations and future prospects of the Company and its subsidiaries, see the “Risk Factors” section included under Item 1A. of Part I of the Company's Annual Report on Form 10-K for the year ended December 31, 2025.

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Part I

Item 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company, like other financial institutions, is subject to direct and indirect market risk. Direct market risk exists from changes in interest rates. The Company's net income is dependent on its net interest income. Net interest income is susceptible to interest rate risk to the degree that interest-bearing liabilities mature or reprice on a different basis than interest-earning assets. When interest-bearing liabilities mature or reprice more quickly than interest-earning assets in a given period, a significant increase in market rates of interest could adversely affect net interest income. Similarly, when interest-earning assets mature or reprice more quickly than interest-bearing liabilities, falling interest rates could result in a decrease in net interest income.

In an attempt to manage the Company's exposure to changes in interest rates, management monitors the Company's interest rate risk. Each subsidiary bank has an asset/liability management committee of the board of directors that meets quarterly to review the bank's interest rate risk position and profitability, and to make or recommend adjustments for consideration by the full board of each bank.

Internal asset/liability management teams, consisting of members of the subsidiary banks’ management, meet bi-weekly to manage the mix of assets and liabilities to maximize earnings and liquidity and minimize interest rate and other risks. Management also reviews the subsidiary banks' securities portfolios, formulates investment strategies, and oversees the timing and implementation of transactions to assure attainment of the board's objectives in an effective manner. Notwithstanding the Company's interest rate risk management activities, the potential for changing interest rates is an uncertainty that can have an adverse effect on net income.

In adjusting the Company's asset/liability position, the board of directors and management attempt to manage the Company's interest rate risk while maintaining or enhancing net interest margins. At times, depending on the level of general interest rates, the relationship between long-term and short-term interest rates, market conditions and competitive factors, the board of directors and management may decide to increase the Company's interest rate risk position somewhat in order to increase its net interest margin. The Company's results of operations and net portfolio values remain vulnerable to increases in interest rates and to fluctuations in the difference between long-term and short-term interest rates.

One method used to quantify interest rate risk is a short-term earnings at risk summary, which is a detailed and dynamic simulation model used to quantify the estimated exposure of net interest income to sustained interest rate changes. This simulation model captures the impact of changing interest rates on the interest income received and interest expense paid on all interest sensitive assets and liabilities reflected on the Company's consolidated balance sheet. This sensitivity analysis demonstrates net interest income exposure annually over a five-year horizon, assuming no balance sheet growth, no balance sheet mix change, and various interest rate scenarios including no change in rates; 100, 200, 300, and 400 basis point upward and downward shifts; where interest-bearing assets and liabilities reprice at their earliest possible repricing date.

The model assumes parallel and pro rata shifts in interest rates over a twelve-month period for the 100, 200 and 300 basis point upward and downward shifts. For the 400 basis point upward shift, the model assumes a parallel and pro rata shift in interest rates over a twenty-four month period.

Further, in recent years, the Company added additional interest rate scenarios where interest rates experience a parallel and instantaneous shift (a “shock”) upward and downward of 100, 200, 300, and 400 basis points. The Company will run additional interest rate scenarios on an as-needed basis.

The asset/liability management committees of the subsidiary bank boards of directors have established policy limits of a 10% decline in net interest income for the 200-basis point upward and downward parallel shift. For the 300 basis point upward and downward shock, the established policy limit is a 30% decline in net interest income. The increased policy limit is appropriate as the shock scenario is extreme and unlikely and warrants a higher limit than the more realistic and traditional parallel/pro-rata shift scenarios.

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Item 3

Application of the simulation model analysis for select interest rate scenarios at the most recent quarter-end available is presented in the following table:


		NET INTEREST INCOME EXPOSURE IN YEAR 1
				As of June 30,		As of December 31,
INTEREST RATE SCENARIO		POLICY LIMIT		2026		2025

300 basis point downward parallel shock		(30.0)	%	2.0	%	0.9	%
200 basis point downward parallel shift		(10.0)	%	0.6	%	0.5	%
200 basis point upward parallel shift		(10.0)	%	(1.0)	%	(0.6)	%
300 basis point upward parallel shock		(30.0)	%	(3.4)	%	(1.9)	%

With the shift in funding from non-interest bearing and lower beta deposits to higher beta deposits, the Company’s balance sheet is now moderately liability sensitive. Notably, management is conservative with the repricing assumptions on loans and deposits. For example, management does not model any delay in loan and deposit betas despite historical experience and practice of delays in deposit betas. Additionally, management does not model mix shift or growth in its standard scenarios which can be impactful. As an alternative, management runs separate scenarios to capture the impact on delayed beta performance and various shifts in mix of loans and deposits. Finally, management models a variety of scenarios including some that stress key assumptions to help capture and isolate the impact of the management’s more conservative approach to the assumptions in the base model.

The simulation is within the board-established policy limits for all four scenarios. Additionally, for all of the various interest rate scenarios modeled and measured by management (as described above), the results at June 30, 2026 were within established risk tolerances as established by policy or by best practice (if the interest rate scenario didn't have a specific policy limit).

Interest rate risk is considered to be one of the most significant market risks affecting the Company. For that reason, the Company engages the assistance of a national consulting firm and its risk management system to monitor and control the Company's interest rate risk exposure. Other types of market risk, such as foreign currency exchange rate risk and commodity price risk, do not arise in the normal course of the Company's business activities.

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Part I

Item 4

CONTROLS AND PROCEDURES

Evaluation of disclosure controls and procedures. An evaluation was performed under the supervision and with the participation of the Company's management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) promulgated under the Exchange Act of 1934) as of June 30, 2026. Based on that evaluation, the Company's management, including the Chief Executive Officer and Chief Financial Officer, concluded that the Company's disclosure controls and procedures were effective, as of the end of the period covered by this report, to ensure that information required to be disclosed in the reports filed and submitted under the Exchange Act was recorded, processed, summarized and reported as and when required.

Changes in Internal Control over Financial Reporting. There have been no significant changes to the Company's internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

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Part II

QCR HOLDINGS, INC. AND SUBSIDIARIES

PART II - OTHER INFORMATION

Item 1 Legal Proceedings

There are no material pending legal proceedings to which the Company or any of its subsidiaries is a party other than ordinary routine litigation incidental to their respective businesses.

Item 1A Risk Factors

There have been no material changes in the risk factors applicable to the Company from those disclosed in Part I, Item 1A., “Risk Factors,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. Please refer to that section of the Company’s Form 10-K for disclosures regarding the other risks and uncertainties related to the Company’s business.

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds


			Total number of shares	Maximum number
			purchased as part of	of shares that may still
	Total number of	Average price	publicly announced	be purchased under
Period	shares purchased	paid per share	plans or programs	the plans or programs

January 1-31, 2026	36,069	86.10	185,525	1,514,475
February 1-28, 2026	29,576	90.28	215,101	1,484,899
March 1-31, 2026	181,644	83.68	396,745	1,303,255
April 1-30, 2026	69,592	89.72	466,337	1,233,663
May 1-31, 2026	69,880	90.10	536,217	1,163,783
June 1-30, 2026	10,167	90.99	546,384	1,153,616

Item 3 Defaults Upon Senior Securities

None

Item 4 Mine Safety Disclosures

Not applicable

Item 5 Other Information

During the fiscal quarter ended June 30, 2026, none of the Company’s directors or executive officers adopted or terminated a contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule10b5-1(c) or any non-Rule 10b5-1 trading arrangement.

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Part II

QCR HOLDINGS, INC. AND SUBSIDIARIES

PART II - OTHER INFORMATION

Item 6 Exhibits


31.1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a).

31.2	Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a).

32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101	Inline XBRL Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of June 30, 2026 and December 31, 2025; (ii) Consolidated Statements of Income for the three months ended June 30, 2026 and June 30, 2025; (iii) Consolidated Statements of Income for the six months ended June 30, 2026 and June 30, 2025; (iv) Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2026 and June 30, 2025; (v) Consolidated Statements of Changes in Stockholders' Equity for the three and six months ended June 30, 2026 and June 30, 2025; (vi) Consolidated Statements of Cash Flows for the three and six months ended June 30, 2026 and June 30, 2025; and (vii) Notes to the Consolidated Financial Statements.
104	Inline XBRL cover page interactive data file pursuant to Rule 406 of Regulation S-T for the interactive data files referenced in Exhibit 101.

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SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

QCR HOLDINGS, INC.

(Registrant)



Date	August 7, 2026	/s/ Todd A. Gipple
		Todd A. Gipple
		President & Chief Executive Officer


Date	August 7, 2026	/s/ Nick W. Anderson
		Nick W. Anderson
		Chief Financial Officer


Date	August 7, 2026	/s/ Brittany N. Whitfield
		Brittany N. Whitfield
		Chief Accounting Officer