Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Basis of Accounting, Policy [Policy Text Block]

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, 2017,

included in the Company’s Annual Report on Form

-K filed with the SEC on

March 12, 2018.

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

-Q and Rule

of Regulation S-

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

March 31, 2018

are

not

necessarily indicative of the results expected for the year ending

December 31, 2018,

or for any other period.

The acronyms and abbreviations identified below are used throughout this Quarterly Report on Form

-Q. It

may

be helpful to refer back to this page as you read this report.

Allowance: Allowance for estimated losses on loans/leases	Guaranty: Guaranty Bankshares, Ltd.
AOCI: Accumulated other comprehensive income (loss)	Guaranty Bank: Guaranty Bank and Trust Company
AFS: Available for sale	HTM: Held to maturity
ASC: Accounting Standards Codification	m2: m2 Lease Funds, LLC
ASU: Accounting Standards Update	NIM: Net interest margin
Bates Companies: Bates Financial Advisors, Inc., Bates	NPA: Nonperforming asset
Financial Services, Inc., Bates Securities, Inc. and	NPL: Nonperforming loan
Bates Financial Group, Inc.	OREO: Other real estate owned
BOLI: Bank-owned life insurance	OTTI: Other-than-temporary impairment
Caps: Interest rate cap derivatives	PCI: Purchased credit impaired
CDI: Core deposit intangible	Provision: Provision for loan/lease losses
Community National: Community National Bancorporation	QCBT: Quad City Bank & Trust Company
CRBT: Cedar Rapids Bank & Trust Company	RB&T: Rockford Bank & Trust Company
CRE: Commercial real estate	ROAA: Return on Average Assets
CSB: Community State Bank	SBA: U.S. Small Business Administration
C&I: Commercial and industrial	SEC: Securities and Exchange Commission
Dodd-Frank Act: Dodd-Frank Wall Street Reform and	SFC Bank: Springfield First Community Bank
Consumer Protection Act	Springfield Bancshares: Springfield Bancshares, Inc.
EPS: Earnings per share	TA: Tangible assets
Exchange Act: Securities Exchange Act of 1934, as amended	Tax Act: Tax Cuts and Jobs Act of 2017
FASB: Financial Accounting Standards Board	TCE: Tangible common equity
FDIC: Federal Deposit Insurance Corporation	TDRs: Troubled debt restructurings
FHLB: Federal Home Loan Bank	TEY: Tax equivalent yield
FRB: Federal Reserve Bank of Chicago	The Company: QCR Holdings, Inc.
GAAP: Generally Accepted Accounting Principles	USDA: U.S. Department of Agriculture

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries which include

four

commercial banks: QCBT, CRBT, CSB and RB&T. All are state-chartered commercial banks and all are members of the Federal Reserve system. The Company also engages in direct financing lease contracts through

m2,

a wholly-owned subsidiary of QCBT. All material intercompany transactions and balances have been eliminated in consolidation.

The acquisition of Guaranty Bank, headquartered in Cedar Rapids, Iowa occurred on

October 2, 2017

and Guaranty Bank was merged into CRBT on

December 2, 2017.

The financial results for the periods since acquisition are included in this report. See Note

of the Company’s Annual Report on Form

-K for the year ended

December 31, 2017

for additional information about the acquisition.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent accounting developments

: In

May 2014,

FASB issued ASU

2014

09,

Revenue from Contracts with Customers

. ASU

2014

implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU

2014

is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU

2014

was originally effective for the Company on

January 1, 2017;

however, FASB issued ASU

2015

which defers the effective date in order to provide additional time for both public and private entities to evaluate the impact. ASU

2014

was adopted by the Company on

January 1, 2018

and did

not

have a significant impact on the Company’s consolidated financial statements.

January 2016,

FASB issued ASU

2016

01,

Financial Instruments–Overall

. ASU

2016

makes targeted adjustments to GAAP by eliminating the AFS classification for equity securities and requiring equity investments to be measured at fair value with changes in fair value recognized in net income. The standard also requires public business entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes. The standard clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to AFS securities in combination with the entity’s other deferred tax assets. It also requires an entity to present separately (within other comprehensive income) the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, the standard eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. Upon adoption of ASU

2016

by the Company on

January 1, 2018,

the fair value of the Company’s loan portfolio is now presented using an exit price method. Also, the Company is

longer required to disclose the methodologies used for estimating fair value of financial assets and liabilities that are

not

measured at fair value on a recurring or nonrecurring basis. The remaining requirements of this update had

significant impact on the consolidated financial statements.

February 2016,

the FASB issued ASU

2016

02,

Leases

. Under ASU

2016

02,

lessees will be required to recognize a lease liability measured on a discounted basis and a right-of-use asset for all leases (with the exception of short-term leases). Lessor accounting is largely unchanged under ASU

2016

02.

However, the definition of initial direct costs was updated to include only initial direct costs that are considered incremental. This change in definition will change the manner in which the Company recognizes the costs associated with originating leases. ASU

2016

is effective for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. Early adoption is permitted for all entities. The Company is in the process of analyzing the impact of adoption on the Company’s consolidated financial statements.

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments – Credit Losses

. Under the standard, assets measured at amortized costs (including loans, leases and AFS securities) will be presented at the net amount expected to be collected. Rather than the “incurred” model that is currently being utilized, the standard will require the use of a forward-looking approach to recognizing all expected credit losses at the beginning of an asset’s life. For public companies, ASU

2016

is effective for fiscal years beginning after

December 15, 2019,

including interim periods within those fiscal years. Companies

may

choose to early adopt for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. The Company is in the process of analyzing the impact of adoption on the Company’s consolidated financial statements.

February 2018,

the FASB issued ASU

2018

02,

Income Statement – Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.

Under the standard, entities are allowed to make a

one

-time reclassification from AOCI to retained earnings for the effect of remeasuring deferred tax liabilities and assets originally recorded in other comprehensive income as a result of the change in the federal tax rate as defined by the Tax Act. ASU

2018

is effective for fiscal years beginning after

December 15, 2018,

including interim periods within those years. Companies

may

choose to early adopt for fiscal years or interim periods that have

not

been issued or made available for issuance as of

February 14, 2018.

The Company chose to early adopt ASU

2018

and apply the guidance to the consolidated financial statements for the year ended

December 31, 2017.

Reclassification, Policy [Policy Text Block]

Reclassifications

: Certain amounts in the prior year’s consolidated financial statements have been reclassified, with

effect on net income or stockholders’ equity, to conform with the current period presentation.