NOTE 5 - DERIVATIVES AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2026

DERIVATIVES AND HEDGING ACTIVITIES

Summary of derivatives


	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

Summary of impact of AOCI


		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			-


		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			-

Schedule of hedged interest rate swaps and non-hedged interest rate swaps are collateralized by investment securities with carrying values


		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

Interest rate collars

DERIVATIVES AND HEDGING ACTIVITIES

Schedule of fair value of derivative

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)


						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)

Interest rate swaps

DERIVATIVES AND HEDGING ACTIVITIES

Schedule of fair value of derivative


						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.


						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)



						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.

Changes in the fair value of the underlying derivative contracts


				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

Swaptions

DERIVATIVES AND HEDGING ACTIVITIES

Changes in the fair value of the underlying derivative contracts


				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.