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Note 1 - Summary of Significant Accounting Policies | 9 Months Ended
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Sep. 30, 2017
Notes to Financial Statements |
Significant Accounting Policies [Text Block] | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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, 2016, included in the Company’s Annual Report on Form 10 -K filed with the SEC on March 10, 2017. 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 10 -Q and Rule 10 - 01 of Regulation S- X. 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 September 30, 2017, are not necessarily indicative of the results expected for the year ending December 31, 2017, or for any other period. The acronyms and abbreviations identified below are used throughout this Quarterly Report on Form 10 -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 Bank: Guaranty Bank and Trust Company
| AOCI: Accumulated other comprehensive income (loss) |  | HTM: Held to maturity
| AFS: Available for sale |  | m2: m2 Lease Funds, LLC
| ASC: Accounting Standards Codification |  | NIM: Net interest margin
| ASU: Accounting Standards Update |  | NPA: Nonperforming asset
| BOLI: Bank-owned life insurance |  | NPL: Nonperforming loan
| Caps: Interest rate cap derivatives |  | OREO: Other real estate owned
| Community National: Community National Bancorporation |  | OTTI: Other-than-temporary impairment
| CRBT: Cedar Rapids Bank & Trust Company |  | PCI: Purchased credit impaired
| CRE: Commercial real estate |  | Provision: Provision for loan/lease losses
| CSB: Community State Bank |  | QCBT: Quad City Bank & Trust Company
| C&I: Commercial and industrial |  | RB&T: Rockford Bank & Trust Company
| Dodd-Frank Act: Dodd-Frank Wall Street Reform and |  | ROAA: Return on Average Assets
| Consumer Protection Act |  | SBA: U.S. Small Business Administration
| EPS: Earnings per share |  | SEC: Securities and Exchange Commission
| Exchange Act: Securities Exchange Act of 1934, as amended |  | TA: Tangible assets
| 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
| Guaranty: Guaranty Bankshares, Ltd. |  |
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. T he acquisition of CSB occurred on August 31, 2016; therefore, the financial results of CSB for the periods since acquisition are included in this report. On October 2, 2017, the Company announced the completion of its previously announced acquisition of Guaranty Bank, headquartered in Cedar Rapids, Iowa, from Guaranty. The financial results of Guaranty Bank are not included in this report because the closing was effective October 1, 2017. See Note 8 to the Consolidated Financial Statements for additional information about the acquisition. Recent accounting developments : In May 2014, FASB issued ASU 2014 - 09, Revenue from Contracts with Customers . ASU 2014 - 09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014 - 09 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 - 09 was originally effective for the Company on January 1, 2017; however, FASB issued ASU 2015 - 14 which defers the effective date in order to provide additional time for both public and private entities to evaluate the impact. ASU 2014 - 09 will now be effective for the Company on January 1, 2018 and it is not expected to have a significant impact on the Company’s consolidated financial statements. In January 2016, FASB issued ASU 2016 - 01, Financial Instruments–Overall . ASU 2016 - 01 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. ASU 2016 - 01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and it is not expected to have a significant impact on the Company’s consolidated financial statements. In 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 - 02 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. In 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 - 13 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. Effective January 1, 2017, the Company adopted ASU 2016 - 09, Compensation – Stock Compensation . Under the standard, the excess tax benefit (deficiency) related to stock options exercised and restricted stock awards vested is recorded as an adjustment to income tax expense. In the past, this tax benefit (deficiency) was recorded directly to equity. This change in accounting resulted in $191 thousand of reduced income tax in the third quarter of 2017 and $814 thousand of reduced income tax expense in the first nine months of 2017.

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