NOTE 10 - REGULATORY CAPITAL REQUIREMENTS

3 Months Ended

Mar. 31, 2026

REGULATORY CAPITAL REQUIREMENTS

REGULATORY CAPITAL REQUIREMENTS

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, 2026 and December 31, 2025, 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, 2026 and December 31, 2025 are presented in the following tables (dollars in thousands).  As of March 31, 2026 and December 31, 2025, 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, 2026:
Company:
Total risk-based capital	$	1,363,858	14.00	%	$	779,180	>	8.00	%	$	1,022,674	>	10.50	%	$	973,976	>	10.00	%
Tier 1 risk-based capital		1,075,998	11.05			584,385	>	6.00			827,879	>	8.50			779,180	>	8.00
Tier 1 leverage		1,075,998	11.44			376,080	>	4.00			376,080	>	4.00			470,100	>	5.00
Common equity Tier 1		1,026,974	10.54			438,289	>	4.50			681,783	>	7.00			633,084	>	6.50
Quad City Bank & Trust:
Total risk-based capital	$	344,898	13.97	%	$	197,463	>	8.00	%	$	259,170	>	10.50	%	$	246,829	>	10.00	%
Tier 1 risk-based capital		318,206	12.89			148,097	>	6.00			209,804	>	8.50			197,463	>	8.00
Tier 1 leverage		318,206	10.94			116,303	>	4.00			116,303	>	4.00			145,379	>	5.00
Common equity Tier 1		318,206	12.89			111,073	>	4.50			172,780	>	7.00			160,439	>	6.50
Cedar Rapids Bank & Trust:
Total risk-based capital	$	500,763	14.64	%	$	273,616	>	8.00	%	$	359,121	>	10.50	%	$	342,020	>	10.00	%
Tier 1 risk-based capital		473,856	13.85			205,212	>	6.00			290,717	>	8.50			273,616	>	8.00
Tier 1 leverage		473,856	16.68			113,618	>	4.00			113,618	>	4.00			142,022	>	5.00
Common equity Tier 1		473,856	13.85			153,909	>	4.50			239,414	>	7.00			222,313	>	6.50
Community State Bank:
Total risk-based capital	$	217,053	12.62	%	$	137,540	>	8.00	%	$	180,521	>	10.50	%	$	171,925	>	10.00	%
Tier 1 risk-based capital		202,927	11.80			103,155	>	6.00			146,136	>	8.50			137,540	>	8.00
Tier 1 leverage		202,927	11.92			68,119	>	4.00			68,119	>	4.00			85,149	>	5.00
Common equity Tier 1		202,927	11.80			77,366	>	4.50			120,347	>	7.00			111,751	>	6.50
Guaranty Bank:
Total risk-based capital	$	311,027	14.18	%	$	175,510	>	8.00	%	$	230,358	>	10.50	%	$	219,388	>	10.00	%
Tier 1 risk-based capital		286,109	13.04			131,633	>	6.00			186,480	>	8.50			175,510	>	8.00
Tier 1 leverage		286,109	12.43			92,061	>	4.00			92,061	>	4.00			115,077	>	5.00
Common equity Tier 1		286,109	13.04			98,725	>	4.50			153,572	>	7.00			142,602	>	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, 2025:
Company:
Total risk-based capital	$	1,369,172	14.19	%	$	771,812	>	8.00	%	$	1,013,003	>	10.50	%	$	964,765	>	10.00	%
Tier 1 risk-based capital		1,063,505	11.02			578,859	>	6.00			820,050	>	8.50			771,812	>	8.00
Tier 1 leverage		1,063,505	11.07			384,419	>	4.00			384,419	>	4.00			480,523	>	5.00
Common equity Tier 1		1,014,514	10.52			434,144	>	4.50			675,335	>	7.00			627,097	>	6.50
Quad City Bank & Trust:
Total risk-based capital	$	342,214	14.33	%	$	191,071	>	8.00	%	$	250,780	>	10.50	%	$	238,838	>	10.00	%
Tier 1 risk-based capital		313,533	13.13			143,303	>	6.00			203,013	>	8.50			191,071	>	8.00
Tier 1 leverage		313,533	10.65			117,711	>	4.00			117,711	>	4.00			147,138	>	5.00
Common equity Tier 1		313,533	13.13			107,477	>	4.50			167,187	>	7.00			155,245	>	6.50
Cedar Rapids Bank & Trust:
Total risk-based capital	$	495,107	14.61	%	$	271,051	>	8.00	%	$	355,754	>	10.50	%	$	338,814	>	10.00	%
Tier 1 risk-based capital		466,349	13.76			203,288	>	6.00			287,992	>	8.50			271,051	>	8.00
Tier 1 leverage		466,349	16.22			115,000	>	4.00			115,000	>	4.00			143,751	>	5.00
Common equity Tier 1		466,349	13.76			152,466	>	4.50			237,170	>	7.00			220,229	>	6.50
Community State Bank:
Total risk-based capital	$	212,148	12.65	%	$	134,206	>	8.00	%	$	176,146	>	10.50	%	$	167,758	>	10.00	%
Tier 1 risk-based capital		197,171	11.75			100,655	>	6.00			142,594	>	8.50			134,206	>	8.00
Tier 1 leverage		197,171	11.42			69,072	>	4.00			69,072	>	4.00			86,340	>	5.00
Common equity Tier 1		197,171	11.75			75,491	>	4.50			117,431	>	7.00			109,043	>	6.50
Guaranty Bank:
Total risk-based capital	$	308,357	14.13	%	$	174,598	>	8.00	%	$	229,159	>	10.50	%	$	218,247	>	10.00	%
Tier 1 risk-based capital		283,230	12.98			130,948	>	6.00			185,510	>	8.50			174,598	>	8.00
Tier 1 leverage		283,230	12.03			94,143	>	4.00			94,143	>	4.00			117,679	>	5.00
Common equity Tier 1		283,230	12.98			98,211	>	4.50			152,773	>	7.00			141,861	>	6.50