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Note 7 - Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2024

Derivatives and Hedging Activities

Summary of derivatives


		December 31, 2024			December 31, 2023

		(dollars in thousands)
Assets:
Hedged Derivatives
Cash Flow Hedges
Interest rate caps		$	—		$	2,847
Interest rate swaps			1,905			1,689
Unhedged Derivatives
Interest rate caps			118			951
Swaptions			998			—
Interest rate swaps			183,760			181,854
		$	186,781		$	187,341

Liabilities:
Hedged Derivatives
Cash Flow Hedges
Interest rate swaps		$	(30,623)		$	(30,407)
Interest rate collars			(105)			(166)
Fair Value Hedges
Interest rate swaps			(335)			(3,308)
Unhedged Derivatives
Interest rate swaps			(183,760)			(181,854)
		$	(214,823)		$	(215,735)

Summary of impact of AOCI


		Year Ended
		December 31, 2024			December 31, 2023

		(dollars in thousands)

Unrealized loss at beginning of period, net of tax		$	(19,979)		$	(20,221)
Amount reclassified from accumulated other comprehensive income to interest expense related to caplet amortization			(510)			(872)
Amount of gain (loss) recognized in other comprehensive income, net of tax			(1,187)			1,114
Unrealized loss at end of period, net of tax		$	(21,676)		$	(19,979)


		Year Ended December 31, 2024							Year Ended December 31, 2023							Year Ended December 31, 2022
		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		$	481,857		$	250,069			$	413,410		$	192,404			$	292,571		$	61,451

The effects of cash flow hedging:
Gain (loss) on interest rate caps on deposits			-			(4,032)				-			(7,639)				-			(1,422)
Gain (loss) on interest rate swaps on debt			-			(1,271)				-			(1,167)				-			500
(Gain) loss on interest rate swaps and collars on loans			(11,431)			-				(10,763)			-				(829)			-

The effects of fair value hedging:
Gain on interest rate swaps on loans			3,380			-				1,746			-				-			-

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


		December 31, 2024			December 31, 2023

		(dollars in thousands)

Cash		$	39,431		$	51,680
U.S. govt. sponsored agency securities			6,222			6,413
Municipal securities			151,107			68,651
Residential mortgage-backed and related securities			18,132			23,358
		$	214,892		$	150,102

Interest rate caps

Derivatives and Hedging Activities

Schedule of interest rate caps


						Balance Sheet								Fair Value as of
Hedged Item		Effective Date		Maturity Date		Location		Notional Amount			Strike Rate			December 31, 2024				December 31, 2023
(dollars in thousands)

Deposits		1/1/2020		1/1/2024		Derivatives - Assets		$	25,000		1.75	%		$	-			$	(79)
Deposits		1/1/2020		1/1/2024		Derivatives - Assets			50,000		1.57	%			-				-
Deposits		1/1/2020		1/1/2024		Derivatives - Assets			25,000		1.80	%			-				-
Deposits		1/1/2020		1/1/2025		Derivatives - Assets			25,000		1.75	%			-				672
Deposits		1/1/2020		1/1/2025		Derivatives - Assets			50,000		1.57	%			-				1,503
Deposits		1/1/2020		1/1/2025		Derivatives - Assets			25,000		1.80	%			-				751
								$	200,000					$	-			$	2,847

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, 2024				December 31, 2023
(dollars in thousands)

2/1/2020		2/1/2024		Derivatives - Assets		$	25,000		1.90	%		$	-			$	79
3/1/2020		3/3/2025		Derivatives - Assets			25,000		1.90	%			118				872
						$	50,000					$	118			$	951

Interest rate swaps

Derivatives and Hedging Activities

Schedule of interest rate caps


						Balance Sheet		Notional										Fair Value as of
Hedged Item		Effective Date		Maturity Date		Location		Amount			Receive Rate				Pay Rate			December 31, 2024			December 31, 2023
(dollars in thousands)

QCR Holdings Statutory Trust V		7/7/2018		7/7/2028		Derivatives - Assets		$	10,000		6.47	%			4.54	%		$	427		$	335
Community National Statutory Trust III		9/15/2018		9/15/2028		Derivatives - Assets			3,500		6.37	%			4.75	%			197			118
Guaranty Bankshares Statutory Trust I		9/15/2018		9/15/2028		Derivatives - Assets			4,500		6.37	%			4.75	%			153			152
Community National Statutory Trust II		9/20/2018		9/20/2028		Derivatives - Assets			3,000		6.79	%			5.17	%			132			101
QCR Holdings Statutory Trust II		9/30/2018		9/30/2028		Derivatives - Assets			10,000		7.72	%			5.85	%			443			341
QCR Holdings Statutory Trust III		9/30/2018		9/30/2028		Derivatives - Assets			8,000		7.72	%			5.85	%			353			272
Guaranty Statutory Trust II*		5/23/2019		2/23/2026		Derivatives - Assets			10,310		6.23	%			4.09	%			200			370
QCR Holdings Subordinated Note		3/1/2024		2/15/2028		Derivatives - Liabilities			65,000		5.04	%			4.02	%			(50)			-
								$	114,310									$	1,855		$	1,689

* Acquired on April 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, 2024			December 31, 2023
(dollars in thousands)

Loans		7/1/2021		7/1/2031		Derivatives - Liabilities		$	35,000			1.40	%			4.66	%		$	(5,445)		$	(5,004)
Loans		7/1/2021		7/1/2031		Derivatives - Liabilities			50,000			1.40	%			4.66	%			(7,779)			(7,149)
Loans		7/1/2021		7/1/2031		Derivatives - Liabilities			40,000			1.40	%			4.66	%			(6,233)			(5,730)
Loans		10/1/2022		7/1/2031		Derivatives - Liabilities			25,000			1.30	%			4.66	%			(3,916)			(3,696)
Loans		4/1/2022		4/1/2027		Derivatives - Liabilities			15,000			1.91	%			4.66	%			(720)			(868)
Loans		4/1/2022		4/1/2027		Derivatives - Liabilities			50,000			1.91	%			4.66	%			(2,400)			(2,892)
Loans		4/1/2022		4/1/2027		Derivatives - Liabilities			35,000			1.91	%			4.66	%			(1,680)			(2,024)
Loans		4/1/2022		4/1/2027		Derivatives - Liabilities			50,000			1.91	%			4.66	%			(2,401)			(3,044)
								$	300,000										$	(30,574)		$	(30,407)



						Balance Sheet												Fair Value as of
Hedged Item		Effective Date		Maturity Date		Location		Notional Amount			Receive Rate				Pay Rate			December 31, 2024			December 31, 2023
(dollars in thousands)

Loans		7/12/2023		8/1/2025		Derivatives - Assets		$	15,000		4.65	%			4.60	%		$	(35)		$	(69)
Loans		7/12/2023		2/1/2026		Derivatives - Assets			25,000		4.65	%			4.38	%			(77)			(195)
Loans		7/12/2023		2/1/2026		Derivatives - Assets			15,000		4.65	%			4.38	%			(46)			(117)
Loans		7/12/2023		2/1/2026		Derivatives - Assets			20,000		4.65	%			4.38	%			(61)			(140)
Loans		7/12/2023		8/1/2026		Derivatives - Assets			30,000		4.65	%			4.21	%			(79)			(293)
Loans		7/12/2023		8/1/2026		Derivatives - Assets			15,000		4.65	%			4.21	%			(40)			(146)
Loans		7/12/2023		8/1/2026		Derivatives - Assets			20,000		4.65	%			4.21	%			(53)			(176)
Loans		7/12/2023		2/1/2027		Derivatives - Assets			32,500		4.65	%			4.08	%			(44)			(364)
Loans		7/12/2023		2/1/2027		Derivatives - Assets			15,000		4.65	%			4.08	%			(20)			(168)
Loans		7/12/2023		2/1/2027		Derivatives - Assets			20,000		4.65	%			4.08	%			(27)			(202)
Loans		7/12/2023		8/1/2027		Derivatives - Assets			32,500		4.65	%			3.98	%			14			(397)
Loans		7/12/2023		8/1/2027		Derivatives - Assets			15,000		4.65	%			3.98	%			6			(183)
Loans		7/12/2023		8/1/2027		Derivatives - Assets			25,000		4.65	%			3.98	%			11			(276)
Loans		7/12/2023		2/1/2028		Derivatives - Assets			30,000		4.65	%			3.90	%			77			(388)
Loans		7/12/2023		2/1/2028		Derivatives - Assets			15,000		4.65	%			3.90	%			39			(194)
								$	325,000									$	(335)		$	(3,308)

Changes in the fair value of the underlying derivative contracts


				December 31, 2024					December 31, 2023
			Notional Amount			Estimated Fair Value			Notional Amount			Estimated Fair Value

			(dollars in thousands)
Non-Hedging Interest Rate Derivatives Assets:
Interest rate swap contracts			$	4,148,306		$	183,760		$	3,308,024		$	181,854
Non-Hedging Interest Rate Derivatives Liabilities:
Interest rate swap contracts			$	4,148,306		$	183,760		$	3,308,024		$	181,854

Interest rate collars

Derivatives and Hedging Activities

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, 2024			December 31, 2023
(dollars in thousands)
Loans		10/1/2022		10/1/2026		Derivatives - Liabilities		$	50,000		4.40	%		2.44	%		$	(105)		$	(166)

Swaptions

Derivatives and Hedging Activities

Changes in the fair value of the underlying derivative contracts


												Fair Value as of
Effective Date		Maturity Date		Location		Notional Amount			Strike Rate			December 31, 2024			December 31, 2023
(dollars in thousands)

7/30/2024		7/30/2025		Derivatives - Assets		$	77,600		2.13	%		$	37			N/A
7/30/2024		7/30/2025		Derivatives - Assets			33,100		2.62	%			54			N/A
7/30/2024		7/30/2025		Derivatives - Assets			28,254		2.12	%			48			N/A
7/30/2024		7/30/2025		Derivatives - Assets			66,247		2.63	%			33			N/A
7/30/2024		1/29/2026		Derivatives - Assets			20,750		2.63	%			102			N/A
7/30/2024		1/29/2026		Derivatives - Assets			41,700		2.13	%			77			N/A
7/30/2024		1/30/2026		Derivatives - Assets			36,546		2.14	%			70			N/A
7/30/2024		1/30/2026		Derivatives - Assets			18,453		2.64	%			93			N/A
7/30/2024		7/30/2026		Derivatives - Assets			16,100		2.64	%			140			N/A
7/30/2024		7/30/2026		Derivatives - Assets			29,800		2.14	%			116			N/A
7/30/2024		7/30/2026		Derivatives - Assets			25,971		2.14	%			103			N/A
7/30/2024		7/30/2026		Derivatives - Assets			14,280		2.64	%			125			N/A
						$	408,801					$	998			N/A