Note 7 - Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2021

Notes Tables

Summary of derivatives

	December 31, 2021		December 31, 2020
	(dollars in thousands)
Assets:
Interest rate caps - hedged	$	927	$	259
Interest rate caps		238		67
Interest rate swaps		221,055		222,431
	$	222,220	$	222,757
Liabilities:
Interest rate swaps - hedged	$	(4,080)	$	(6,839)
Interest rate swaps		(221,055)		(222,431)
	$	(225,135)	$	(229,270)

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

	December 31, 2021		December 31, 2020
	(dollars in thousands)
Cash	$	21,100	$	45,719
U.S treasuries and govt. sponsored agency securities		3,555		3,628
Municipal securities		65,104		85,937
Residential mortgage-backed and related securities		139,166		89,646
	$	228,925	$	224,930

Summary of impact of AOCI

	Year Ended
	December 31, 2021		December 31, 2020
	(dollars in thousands)
Unrealized loss at beginning of period, net of tax	$	(7,632)	$	(3,915)
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		697		551
Amount of gain (loss) recognized in other comprehensive income, net of tax		2,562		(5,406)
Unrealized loss at end of period, net of tax	$	(4,373)	$	(7,632)

	Year Ended December 31, 2021				Year Ended December 31, 2020				Year Ended December 31, 2019
	Interest and		Interest		Interest and		Interest		Interest and		Interest
	Dividend Income		Expense		Dividend Income		Expense		Dividend Income		Expense
	(dollars in thousands)
Income and expense line items presented in the consolidated statements of income	$	200,155	$	21,922	$	198,373	$	31,423	$	216,076	$	60,517
The effects of cash flow hedging:
Gain (loss) on cash flow hedges:
Interest rate caps on deposits		-		697		-		551		-		-
Interest rate swaps on variable rate loans		1,006		-		-		185		-		-
Interest rate swaps on TRUPS		-		1,114		-		832		-		215

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, 2021		December 31, 2020
(dollars in thousands)
Deposits	1/1/2020	1/1/2023	Derivatives - Assets	$	25,000	1.75	%	$	5	$	3
Deposits	1/1/2020	1/1/2023	Derivatives - Assets		50,000	1.57			11		5
Deposits	1/1/2020	1/1/2023	Derivatives - Assets		25,000	1.80			5		3
Deposits	1/1/2020	1/1/2024	Derivatives - Assets		25,000	1.75			60		15
Deposits	1/1/2020	1/1/2024	Derivatives - Assets		50,000	1.57			125		31
Deposits	1/1/2020	1/1/2024	Derivatives - Assets		25,000	1.80			62		15
Deposits	1/1/2020	1/1/2025	Derivatives - Assets		25,000	1.75			161		46
Deposits	1/1/2020	1/1/2025	Derivatives - Assets		50,000	1.57			332		94
Deposits	1/1/2020	1/1/2025	Derivatives - Assets		25,000	1.80			166		47
				$	300,000			$	927	$	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		December 31, 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			62		15
3/1/2020	3/1/2025	Derivatives - Assets		25,000	1.90			173		50
			$	75,000			$	238	$	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		December 31, 2021		December 31, 2020
(dollars in thousands)
Loans	7/1/2021	7/1/2031	Derivatives - Liabilities		35,000	1.40	%	2.81	%		(17)		N/A
Loans	7/1/2021	7/1/2031	Derivatives - Liabilities		50,000	1.40	%	2.81	%		(25)		N/A
Loans	7/1/2021	7/1/2031	Derivatives - Liabilities		40,000	1.40	%	2.81	%		(34)		N/A
Loans	7/1/2021	7/1/2031	Derivatives - Liabilities		25,000	1.40	%	2.81	%		(13)		N/A
				$	150,000					$	(89)	$	N/A

				Balance Sheet							Fair Value as of
Hedged Item	Effective Date		Maturity Date	Location	Notional Amount		Receive Rate		Pay Rate		December 31, 2021		December 31, 2020
		(dollars in thousands)
QCR Holdings Statutory Trust II	9/30/2018		9/30/2028	Derivatives - Liabilities		10,000	3.07	%	5.85	%		(1,035)		(1,767)
QCR Holdings Statutory Trust III	9/30/2018		9/30/2028	Derivatives - Liabilities		8,000	3.07	%	5.85	%		(828)		(1,414)
QCR Holdings Statutory Trust V	7/7/2018		7/7/2028	Derivatives - Liabilities		10,000	1.67	%	4.54	%		(996)		(1,721)
Community National Statutory Trust II	9/20/2018		9/20/2028	Derivatives - Liabilities		3,000	2.38	%	5.17	%		(309)		(529)
Community National Statutory Trust III	9/15//2018		9/15/2028	Derivatives - Liabilities		3,500	1.95	%	4.75	%		(360)		(616)
Guaranty Bankshares Statutory Trust I	9/15/2018		9/15/2028	Derivatives - Liabilities		4,500	1.95	%	4.75	%		(463)		(792)
					$	39,000					$	(3,991)	$	(6,839)

Changes in the fair value of the underlying derivative contracts

		December 31, 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	$	2,024,599	$	221,055	$	1,495,251	$	222,431
Non-Hedging Interest Rate Derivatives Liabilities:
Interest rate swap contracts	$	2,024,599	$	221,055	$	1,495,251	$	222,431