Note 7 - Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2020

Notes Tables

Summary of derivatives

	2020		2019
	(dollars in thousands)
Assets:
Interest rate caps - hedged	$	259	$	3,148
Interest rate caps		67		—
Interest rate swaps		222,431		84,679
	$	222,757	$	87,827
Liabilities:
Interest rate swaps - hedged	$	(6,839)	$	(3,758)
Interest rate swaps		(222,431)		(84,679)
	$	(229,270)	$	(88,437)

Summary of impact of AOCI

	Year Ended
	December 31, 2020		December 31, 2019
	(dollars in thousands)
Unrealized loss at beginning of period, net of tax	$	(3,915)	$	(1,276)
Amount reclassified from accumulated other comprehensive income to noninterest expense related to unhedging caplet		513		—
Amount reclassified from accumulated other comprehensive income to noninterest expense related to swap termination		625		—
Amount reclassified from accumulated other comprehensive income to interest expense related to caplet amortization		551		422
Amount of loss recognized in other comprehensive income, net of tax		(5,406)		(3,061)
Unrealized loss at end of period, net of tax	$	(7,632)	$	(3,915)

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

	December 31, 2020		December 31, 2019
	(dollars in thousands)
Cash	$	45,719	$	—
U.S govt. sponsored agency securities		3,628		3,541
Municipal securities		85,937		22,924
Residential mortgage-backed and related securities		89,646		72,090
	$	224,930	$	98,555

Interest rate cap

Notes Tables

Schedule of interest rate caps

			Balance Sheet					Fair Value as of
Hedged Item	Effective Date	Maturity Date	Location	Notional Amount		Strike Rate		December 31, 2020		December 31, 2019
(dollars in thousands)
Deposits	1/1/2020	1/1/2023	Other Assets	$	25,000	1.75	%	$	3	$	112
Deposits	1/1/2020	1/1/2023	Other Assets		50,000	1.57			5		218
Deposits	1/1/2020	1/1/2023	Other Assets		25,000	1.80			3		109
Deposits	1/1/2020	1/1/2024	Other Assets		25,000	1.75			15		214
Deposits	1/1/2020	1/1/2024	Other Assets		50,000	1.57			31		401
Deposits	1/1/2020	1/1/2024	Other Assets		25,000	1.80			15		201
Deposits	1/1/2020	1/1/2025	Other Assets		25,000	1.75			46		337
Deposits	1/1/2020	1/1/2025	Other Assets		50,000	1.57			94		617
Deposits	1/1/2020	1/1/2025	Other Assets		25,000	1.80			47		309
				$	300,000			$	259	$	2,518

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		December 31, 2020		December 31, 2019
(dollars in thousands)
1/1/2020	1/1/2023	Other Assets	$	25,000	1.90	%	$	2	$	96
2/1/2020	2/1/2024	Other Assets		25,000	1.90			15		202
3/1/2020	3/1/2025	Other Assets		25,000	1.90			50		332
			$	75,000			$	67	$	630

Interest rate swap

Notes Tables

Schedule of interest rate caps

			Balance Sheet							Fair Value as of
Hedged Item	Effective Date	Maturity Date	Location	Notional Amount		Receive Rate		Pay Rate		December 31, 2020		December 31, 2019
(dollars in thousands)
QCR Holdings Statutory Trust II	9/30/2018	9/30/2028	Derivatives - Liabilities		10,000	3.10	%	5.85	%		(1,767)		(971)
QCR Holdings Statutory Trust III	9/30/2018	9/30/2028	Derivatives - Liabilities		8,000	3.10	%	5.85	%		(1,414)		(777)
QCR Holdings Statutory Trust V	7/7/2018	7/7/2028	Derivatives - Liabilities		10,000	1.79	%	4.54	%		(1,721)		(944)
Community National Statutory Trust II	9/20/2018	9/20/2028	Derivatives - Liabilities		3,000	2.41	%	5.17	%		(529)		(291)
Community National Statutory Trust III	9/15//2018	9/15/2028	Derivatives - Liabilities		3,500	1.97	%	4.75	%		(616)		(339)
Guaranty Bankshares Statutory Trust I	9/15/2018	9/15/2028	Derivatives - Liabilities		4,500	1.97	%	4.75	%		(792)		(436)

$ 39,000 2.48 %   5.24 %   $ (6,839) $ (3,758)

Changes in the fair value of the underlying derivative contracts

		December 31, 2020				December 31, 2019
	Notional Amount		Estimated Fair Value		Notional Amount		Estimated Fair Value
	(dollars in thousands)
Non-Hedging Interest Rate Derivatives Assets:
Interest rate swap contracts	$	1,539,602	$	222,431	$	787,221	$	84,679
Non-Hedging Interest Rate Derivatives Liabilities:
Interest rate swap contracts	$	1,539,602	$	222,431	$	787,221	$	84,679