NOTE 10 - REGULATORY CAPITAL REQUIREMENTS

9 Months Ended

Sep. 30, 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 September 30, 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 September 30, 2026 and December 31, 2025 are presented in the following tables (dollars in thousands).  As of September 30, 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 September 30, 2026:
Company:
Total risk-based capital	$	1,416,933	14.50	%	$	781,962	>	8.00	%	$	1,026,325	>	10.50	%	$	977,452	>	10.00	%
Tier 1 risk-based capital		1,125,733	11.52			586,471	>	6.00			830,834	>	8.50			781,962	>	8.00
Tier 1 leverage		1,125,733	11.96			376,469	>	4.00			376,469	>	4.00			470,586	>	5.00
Common equity Tier 1		1,076,643	11.01			439,853	>	4.50			684,217	>	7.00			635,344	>	6.50
Quad City Bank & Trust:
Total risk-based capital	$	344,443	14.78	%	$	186,474	>	8.00	%	$	244,747	>	10.50	%	$	233,092	>	10.00	%
Tier 1 risk-based capital		319,546	13.71			139,855	>	6.00			198,128	>	8.50			186,474	>	8.00
Tier 1 leverage		319,546	11.44			111,702	>	4.00			111,702	>	4.00			139,628	>	5.00
Common equity Tier 1		319,546	13.71			104,891	>	4.50			163,164	>	7.00			151,510	>	6.50
Cedar Rapids Bank & Trust:
Total risk-based capital	$	513,862	14.63	%	$	280,949	>	8.00	%	$	368,746	>	10.50	%	$	351,187	>	10.00	%
Tier 1 risk-based capital		487,339	13.88			210,712	>	6.00			298,509	>	8.50			280,949	>	8.00
Tier 1 leverage		487,339	16.90			115,370	>	4.00			115,370	>	4.00			144,212	>	5.00
Common equity Tier 1		487,339	13.88			158,034	>	4.50			245,831	>	7.00			228,271	>	6.50
Community State Bank:
Total risk-based capital	$	224,855	12.82	%	$	140,330	>	8.00	%	$	184,184	>	10.50	%	$	175,413	>	10.00	%
Tier 1 risk-based capital		209,445	11.94			105,248	>	6.00			149,101	>	8.50			140,330	>	8.00
Tier 1 leverage		209,445	11.95			70,123	>	4.00			70,123	>	4.00			87,654	>	5.00
Common equity Tier 1		209,445	11.94			78,936	>	4.50			122,789	>	7.00			114,018	>	6.50
Guaranty Bank:
Total risk-based capital	$	315,661	14.42	%	$	175,107	>	8.00	%	$	229,828	>	10.50	%	$	218,884	>	10.00	%
Tier 1 risk-based capital		288,281	13.17			131,330	>	6.00			186,051	>	8.50			175,107	>	8.00
Tier 1 leverage		288,281	12.63			91,325	>	4.00			91,325	>	4.00			114,156	>	5.00
Common equity Tier 1		288,281	13.17			98,498	>	4.50			153,219	>	7.00			142,275	>	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