Note 8 - Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2023

Notes Tables

Summary of derivatives

	December 31, 2023		December 31, 2022
	(dollars in thousands)
Assets:
Hedged Derivatives
Cash Flow Hedges
Interest rate caps	$	2,847	$	8,327
Interest rate swaps		1,689		477
Unhedged Derivatives
Interest rate caps		951		2,213
Interest rate swaps		181,854		166,614
	$	187,341	$	177,631
Liabilities:
Hedged Derivatives
Cash Flow Hedges
Interest rate swaps		(30,407)		(33,824)
Interest rate collars		(166)		(263)
Fair Value Hedges
Interest rate swaps		(3,308)		—
Unhedged Derivatives
Interest rate swaps		(181,854)		(166,614)
	$	(215,735)	$	(200,701)

Summary of impact of AOCI

	Year Ended
	December 31, 2023		December 31, 2022
	(dollars in thousands)
Unrealized loss at beginning of period, net of tax	$	(20,221)	$	(4,373)
Amount reclassified from accumulated other comprehensive income to interest expense related to caplet amortization		(872)		(1,001)
Amount of gain (loss) recognized in other comprehensive income, net of tax		1,114		(14,847)
Unrealized loss at end of period, net of tax	$	(19,979)	$	(20,221)

	Year Ended December 31, 2023				Year Ended December 31, 2022				Year Ended December 31, 2021
	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	$	413,410	$	192,404	$	292,571	$	61,451	$	200,155	$	21,922
The effects of cash flow hedging:
Gain (loss) on interest rate caps on deposits		-		(7,639)		-		(1,422)		-		697
Gain (loss) on interest rate swaps on junior subordinated debentures		-		(1,167)		-		500		-		1,116
Gain (loss) on interest rate swaps and collars on loans		(10,763)		-		(829)		-		1,006		-
The effects of fair value hedging:
Gain on interest rate swaps on loans		1,746		-		-		-		-		-

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

	December 31, 2023		December 31, 2022
	(dollars in thousands)
Cash	$	51,680	$	1,272
U.S treasuries and govt. sponsored agency securities		6,413		—
Municipal securities		68,651		8,227
Residential mortgage-backed and related securities		23,358		29,257
	$	150,102	$	38,756

Interest rate caps

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, 2023		December 31, 2022
(dollars in thousands)
Deposits	1/1/2020	1/1/2023	Derivatives - Assets	$	25,000	1.75	%	$	-	$	(50)
Deposits	1/1/2020	1/1/2024	Derivatives - Assets		25,000	1.75	%		(79)		714
Deposits	1/1/2020	1/1/2024	Derivatives - Assets		50,000	1.57	%		-		1,566
Deposits	1/1/2020	1/1/2024	Derivatives - Assets		25,000	1.80	%		-		783
Deposits	1/1/2020	1/1/2025	Derivatives - Assets		25,000	1.75	%		672		1,264
Deposits	1/1/2020	1/1/2025	Derivatives - Assets		50,000	1.57	%		1,503		2,700
Deposits	1/1/2020	1/1/2025	Derivatives - Assets		25,000	1.80	%		751		1,350
				$	225,000			$	2,847	$	8,327

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, 2023		December 31, 2022
(dollars in thousands)
1/1/2020	1/3/2023	Derivatives - Assets	$	25,000	1.90	%	$	-	$	3
2/1/2020	2/1/2024	Derivatives - Assets		25,000	1.90	%		79		822
3/1/2020	3/3/2025	Derivatives - Assets		25,000	1.90	%		872		1,388
			$	75,000			$	951	$	2,213

Interest rate swaps

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, 2023		December 31, 2022
		(dollars in thousands)
QCR Holdings Statutory Trust II	9/30/2018		9/30/2028	Derivatives - Assets	$	10,000	8.44	%	5.85	%	$	341	$	464
QCR Holdings Statutory Trust III	9/30/2018		9/30/2028	Derivatives - Assets		8,000	8.44	%	5.85	%		272		372
QCR Holdings Statutory Trust V	7/7/2018		7/7/2028	Derivatives - Assets		10,000	7.21	%	4.54	%		335		459
Community National Statutory Trust II	9/20/2018		9/20/2028	Derivatives - Assets		3,000	7.80	%	5.17	%		101		140
Community National Statutory Trust III	9/15/2018		9/15/2028	Derivatives - Assets		3,500	7.40	%	4.75	%		118		163
Guaranty Bankshares Statutory Trust I	9/15/2018		9/15/2028	Derivatives - Assets		4,500	7.40	%	4.75	%		152		209
Guaranty Statutory Trust II*	5/23/2019		2/23/2026	Derivatives - Assets		10,310	7.09	%	4.09	%		370		477
					$	49,310					$	1,689	$	2,284
* Acquired on 4/1/2022 with GFED acquisition.

			Balance Sheet							Fair Value as of
Hedged Item	Effective Date	Maturity Date	Location	Notional Amount		Receive Rate		Pay Rate		December 31, 2023		December 31, 2022
(dollars in thousands)
Loans	7/1/2021	7/1/2031	Derivatives - Liabilities	$	35,000	1.40	%	5.45	%	$	(5,004)	$	(5,646)
Loans	7/1/2021	7/1/2031	Derivatives - Liabilities		50,000	1.40	%	5.45	%		(7,149)		(8,066)
Loans	7/1/2021	7/1/2031	Derivatives - Liabilities		40,000	1.40	%	5.45	%		(5,730)		(6,464)
Loans	10/1/2022	7/1/2031	Derivatives - Liabilities		25,000	1.30	%	5.35	%		(3,696)		(4,018)
Loans	4/1/2022	4/1/2027	Derivatives - Liabilities		15,000	1.91	%	5.45	%		(868)		(1,144)
Loans	4/1/2022	4/1/2027	Derivatives - Liabilities		50,000	1.91	%	5.45	%		(2,892)		(3,812)
Loans	4/1/2022	4/1/2027	Derivatives - Liabilities		35,000	1.91	%	5.45	%		(2,024)		(2,669)
Loans	4/1/2022	4/1/2027	Derivatives - Liabilities		50,000	1.91	%	5.45	%		(3,044)		(3,812)
				$	300,000					$	(30,407)	$	(35,631)

			Balance Sheet							Fair Value as of
Hedged Item	Effective Date	Maturity Date	Location	Notional Amount		Receive Rate		Pay Rate		December 31, 2023		December 31, 2022
(dollars in thousands)
Loans	7/12/2023	2/1/2026	Derivatives - Assets	$	25,000	5.35	%	4.38	%	$	(195)	$	N/A
Loans	7/12/2023	8/1/2026	Derivatives - Assets		30,000	5.35	%	4.21	%		(293)		N/A
Loans	7/12/2023	2/1/2027	Derivatives - Assets		32,500	5.35	%	4.08	%		(364)		N/A
Loans	7/12/2023	8/1/2027	Derivatives - Assets		32,500	5.35	%	3.98	%		(397)		N/A
Loans	7/12/2023	2/1/2028	Derivatives - Assets		30,000	5.35	%	3.90	%		(388)		N/A
Loans	7/12/2023	2/1/2026	Derivatives - Assets		15,000	5.35	%	4.38	%		(117)		N/A
Loans	7/12/2023	8/1/2026	Derivatives - Assets		15,000	5.35	%	4.21	%		(146)		N/A
Loans	7/12/2023	2/1/2027	Derivatives - Assets		15,000	5.35	%	4.08	%		(168)		N/A
Loans	7/12/2023	8/1/2027	Derivatives - Assets		15,000	5.35	%	3.98	%		(183)		N/A
Loans	7/12/2023	2/1/2028	Derivatives - Assets		15,000	5.35	%	3.90	%		(194)		N/A
Loans	7/12/2023	8/1/2025	Derivatives - Assets		15,000	5.35	%	4.60	%		(69)		N/A
Loans	7/12/2023	2/1/2026	Derivatives - Assets		20,000	5.35	%	4.38	%		(140)		N/A
Loans	7/12/2023	8/1/2026	Derivatives - Assets		20,000	5.35	%	4.21	%		(176)		N/A
Loans	7/12/2023	2/1/2027	Derivatives - Assets		20,000	5.35	%	4.08	%		(202)		N/A
Loans	7/12/2023	8/1/2027	Derivatives - Assets		25,000	5.35	%	3.98	%		(276)		N/A
				$	325,000					$	(3,308)	$	N/A

Changes in the fair value of the underlying derivative contracts

		December 31, 2023			December 31, 2022
	Notional Amount		Estimated Fair Value		Notional Amount		Estimated Fair Value
	(dollars in thousands)
Non-Hedging Interest Rate Derivatives Assets:
Interest rate swap contracts	$	3,308,024	$	181,854	$	2,528,949	$	166,614
Non-Hedging Interest Rate Derivatives Liabilities:
Interest rate swap contracts	$	3,308,024	$	181,854	$	2,528,949	$	166,614

Interest rate collars

Notes Tables

Schedule of interest rate caps

										Fair Value as of
Hedged Item	Effective Date	Maturity Date	Location	Notional Amount		Cap Strike Rate		Floor Strike Rate		December 31, 2023		December 31, 2022
Loans	10/1/2022	10/1/2026	Derivatives - Liabilities	$	50,000	4.40	%	2.44	%	$	(166)	$	(263)