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Note 10 - REGULATORY CAPITAL REQUIREMENTS

3 Months Ended

Mar. 31, 2025

NOTE 10 – REGULATORY CAPITAL REQUIREMENTS

The Company (on a consolidated basis) and the subsidiary banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and the subsidiary banks' financial statements.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the subsidiary banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain OBS items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the subsidiary banks to maintain minimum amounts and ratios (set forth in the following table) of total common equity Tier 1, Tier 1 capital to risk-weighted assets and Tier 1 capital to average assets, each as defined by regulation. Management believes, as of March 31, 2025 and December 31, 2024, that the Company and the subsidiary banks met all capital adequacy requirements to which they are subject.

Under the regulatory framework for prompt corrective action, to be categorized as “well capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based, Tier 1 leverage and common equity Tier 1 ratios as set forth in the following tables. The Company and the subsidiary banks’ actual capital amounts and ratios as of March 31, 2025 and December 31, 2024 are presented in the following tables (dollars in thousands). As of March 31, 2025 and December 31, 2024, each of the subsidiary banks met such capital requirements to be “well capitalized.”


										For Capital Adequacy					To Be Well Capitalized
					For Capital					Purposes With Capital					Under Prompt Corrective
	Actual				Adequacy Purposes					Conservation Buffer					Action Provisions
	Amount		Ratio		Amount			Ratio		Amount			Ratio		Amount			Ratio

	( dollars in thousands)
As of March 31, 2025:
Company:
Total risk-based capital	$	1,286,554	14.18	%	$	725,744	>	8.00	%	$	952,540	>	10.50	%	$	907,181	>	10.00	%
Tier 1 risk-based capital		980,579	10.81			544,308	>	6.00			771,104	>	8.50			725,744	>	8.00
Tier 1 leverage		980,579	11.06			354,606	>	4.00			354,606	>	4.00			443,257	>	5.00
Common equity Tier 1		931,686	10.27			408,231	>	4.50			635,026	>	7.00			589,667	>	6.50
Quad City Bank & Trust:
Total risk-based capital	$	331,837	13.98	%	$	189,914	>	8.00	%	$	249,262	>	10.50	%	$	237,393	>	10.00	%
Tier 1 risk-based capital		302,140	12.73			142,436	>	6.00			201,784	>	8.50			189,914	>	8.00
Tier 1 leverage		302,140	11.56			104,509	>	4.00			104,509	>	4.00			130,636	>	5.00
Common equity Tier 1		302,140	12.73			106,827	>	4.50			166,175	>	7.00			154,305	>	6.50
Cedar Rapids Bank & Trust:
Total risk-based capital	$	465,533	14.92	%	$	249,628	>	8.00	%	$	327,637	>	10.50	%	$	312,035	>	10.00	%
Tier 1 risk-based capital		437,939	14.03			187,221	>	6.00			265,230	>	8.50			249,628	>	8.00
Tier 1 leverage		437,939	17.05			102,745	>	4.00			102,745	>	4.00			128,431	>	5.00
Common equity Tier 1		437,939	14.03			140,416	>	4.50			218,424	>	7.00			202,823	>	6.50
Community State Bank:
Total risk-based capital	$	195,109	12.97	%	$	120,301	>	8.00	%	$	157,895	>	10.50	%	$	150,376	>	10.00	%
Tier 1 risk-based capital		180,915	12.03			90,226	>	6.00			127,820	>	8.50			120,301	>	8.00
Tier 1 leverage		180,915	11.74			61,635	>	4.00			61,635	>	4.00			77,044	>	5.00
Common equity Tier 1		180,915	12.03			67,669	>	4.50			105,263	>	7.00			97,745	>	6.50
Guaranty Bank:
Total risk-based capital	$	302,258	14.70	%	$	164,469	>	8.00	%	$	215,866	>	10.50	%	$	205,586	>	10.00	%
Tier 1 risk-based capital		277,260	13.49			123,352	>	6.00			174,748	>	8.50			164,469	>	8.00
Tier 1 leverage		277,260	12.55			88,404	>	4.00			88,404	>	4.00			110,505	>	5.00
Common equity Tier 1		277,260	13.49			92,514	>	4.50			143,910	>	7.00			133,631	>	6.50


										For Capital Adequacy					To Be Well Capitalized
					For Capital					Purposes With Capital					Under Prompt Corrective
	Actual				Adequacy Purposes					Conservation Buffer					Action Provisions
	Amount		Ratio		Amount			Ratio		Amount			Ratio		Amount			Ratio

	( dollars in thousands)
As of December 31, 2024:
Company:
Total risk-based capital	$	1,273,903	14.10	%	$	723,016	>	8.00	%	$	948,958	>	10.50	%	$	903,770	>	10.00	%
Tier 1 risk-based capital		955,039	10.57			542,262	>	6.00			768,204	>	8.50			723,016	>	8.00
Tier 1 leverage		955,039	10.73			356,091	>	4.00			356,091	>	4.00			445,114	>	5.00
Common equity Tier 1		906,179	10.03			406,696	>	4.50			632,639	>	7.00			587,450	>	6.50
Quad City Bank & Trust:
Total risk-based capital	$	323,221	13.65	%	$	189,365	>	8.00	%	$	248,541	>	10.50	%	$	236,706	>	10.00	%
Tier 1 risk-based capital		293,597	12.40			142,024	>	6.00			201,200	>	8.50			189,365	>	8.00
Tier 1 leverage		293,597	11.41			102,969	>	4.00			102,969	>	4.00			128,712	>	5.00
Common equity Tier 1		293,597	12.40			106,518	>	4.50			165,694	>	7.00			153,859	>	6.50
Cedar Rapids Bank & Trust:
Total risk-based capital	$	452,942	14.79	%	$	245,055	>	8.00	%	$	321,635	>	10.50	%	$	306,319	>	10.00	%
Tier 1 risk-based capital		424,253	13.85			183,792	>	6.00			260,371	>	8.50			245,055	>	8.00
Tier 1 leverage		424,253	16.40			103,449	>	4.00			103,449	>	4.00			129,312	>	5.00
Common equity Tier 1		424,253	13.85			137,844	>	4.50			214,424	>	7.00			199,108	>	6.50
Community State Bank:
Total risk-based capital	$	189,362	12.94	%	$	117,065	>	8.00	%	$	153,648	>	10.50	%	$	146,332	>	10.00	%
Tier 1 risk-based capital		176,646	12.07			87,799	>	6.00			124,382	>	8.50			117,065	>	8.00
Tier 1 leverage		176,646	11.72			60,305	>	4.00			60,305	>	4.00			75,382	>	5.00
Common equity Tier 1		176,646	12.07			65,849	>	4.50			102,432	>	7.00			95,115	>	6.50
Guaranty Bank:
Total risk-based capital	$	297,047	14.26	%	$	166,695	>	8.00	%	$	218,787	>	10.50	%	$	208,369	>	10.00	%
Tier 1 risk-based capital		272,621	13.08			125,021	>	6.00			177,113	>	8.50			166,695	>	8.00
Tier 1 leverage		272,621	12.15			89,770	>	4.00			89,770	>	4.00			112,213	>	5.00
Common equity Tier 1		272,621	13.08			93,766	>	4.50			145,858	>	7.00			135,440	>	6.50

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

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