NOTE 4 - DERIVATIVES AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2021

Notes Tables

Summary of derivatives

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Assets:
Interest rate caps - hedged	$	613	$	259
Interest rate caps		158		67
Interest rate swaps - hedged		1,490		—
Interest rate swaps		191,134		222,431
	$	193,395	$	222,757
Liabilities:
Interest rate swaps - hedged	$	(4,958)	$	(6,839)
Interest rate swaps		(191,134)		(222,431)
	$	(196,092)	$	(229,270)

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

	June 30, 2021		December 31, 2020
	(dollars in thousands)
Cash	$	22,660	$	45,719
U.S govt. sponsored agency securities		3,612		3,628
Municipal securities		85,895		85,937
Residential mortgage-backed and related securities		78,733		89,646
	$	190,900	$	224,930

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		June 30, 2021		December 31, 2020
(dollars in thousands)
Deposits	1/1/2020	1/1/2023	Derivatives - Assets	$	25,000	1.75	%	$	3	$	3
Deposits	1/1/2020	1/1/2023	Derivatives - Assets		50,000	1.57			8		5
Deposits	1/1/2020	1/1/2023	Derivatives - Assets		25,000	1.80			3		3
Deposits	1/1/2020	1/1/2024	Derivatives - Assets		25,000	1.75			35		15
Deposits	1/1/2020	1/1/2024	Derivatives - Assets		50,000	1.57			73		31
Deposits	1/1/2020	1/1/2024	Derivatives - Assets		25,000	1.80			37		15
Deposits	1/1/2020	1/1/2025	Derivatives - Assets		25,000	1.75			110		46
Deposits	1/1/2020	1/1/2025	Derivatives - Assets		50,000	1.57			229		94
Deposits	1/1/2020	1/1/2025	Derivatives - Assets		25,000	1.80			115		47
				$	300,000			$	613	$	259

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, 2021		December 31, 2020
(dollars in thousands)
1/1/2020	1/1/2023	Derivatives - Assets	$	25,000	1.90	%	$	3	$	2
2/1/2020	2/1/2024	Derivatives - Assets		25,000	1.90			35		15
3/1/2020	3/1/2025	Derivatives - Assets		25,000	1.90			120		50
			$	75,000			$	158	$	67

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		June 30, 2021		December 31, 2020
(dollars in thousands)
QCBT - Loans	7/1/2021	7/1/2031	Derivatives - Assets		35,000	1.40	%	2.81	%		351		N/A
CRBT - Loans	7/1/2021	7/1/2031	Derivatives - Assets		50,000	1.40	%	2.81	%		502		N/A
CSB - Loans	7/1/2021	7/1/2031	Derivatives - Assets		40,000	1.40	%	2.81	%		386		N/A
SFCB - Loans	7/1/2021	7/1/2031	Derivatives - Assets		25,000	1.40	%	2.81	%		251		N/A
				$	150,000					$	1,490	$	N/A

			Balance Sheet							Fair Value as of
Hedged Item	Effective Date	Maturity Date	Location	Notional Amount		Receive Rate		Pay Rate		June 30, 2021		December 31, 2020
(dollars in thousands)
QCR Holdings Statutory Trust II	9/30/2018	9/30/2028	Derivatives - Liabilities		10,000	3.00	%	5.85	%		(1,282)		(1,767)
QCR Holdings Statutory Trust III	9/30/2018	9/30/2028	Derivatives - Liabilities		8,000	3.00	%	5.85	%		(1,025)		(1,414)
QCR Holdings Statutory Trust V	7/7/2018	7/7/2028	Derivatives - Liabilities		10,000	1.74	%	4.54	%		(1,246)		(1,721)
Community National Statutory Trust II	9/20/2018	9/20/2028	Derivatives - Liabilities		3,000	2.30	%	5.17	%		(383)		(529)
Community National Statutory Trust III	9/15//2018	9/15/2028	Derivatives - Liabilities		3,500	1.87	%	4.75	%		(447)		(616)
Guaranty Bankshares Statutory Trust I	9/15/2018	9/15/2028	Derivatives - Liabilities		4,500	1.87	%	4.75	%		(575)		(792)
				$	39,000					$	(4,958)	$	(6,839)

Changes in the fair value of the underlying derivative contracts

		June 30, 2021			December 31, 2020
	Notional Amount		Estimated Fair Value		Notional Amount		Estimated Fair Value
	(dollars in thousands)
Non-Hedging Interest Rate Derivatives Assets:
Interest rate swap contracts	$	3,149,265	$	191,134	$	1,539,602	$	222,431
Non-Hedging Interest Rate Derivatives Liabilities:
Interest rate swap contracts	$	3,149,265	$	191,134	$	1,539,602	$	222,431