Note 7 - Derivatives and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2022

Notes Tables

Summary of derivatives

	December 31, 2022		December 31, 2021
	(dollars in thousands)
Assets:
Interest rate caps - hedged	$	8,327	$	927
Interest rate caps		2,213		238
Interest rate swaps - hedged		477		—
Interest rate swaps		166,614		221,055
	$	177,631	$	222,220
Liabilities:
Interest rate collars - hedged	$	(263)	$	—
Interest rate swaps - hedged		(33,824)		(4,080)
Interest rate swaps		(166,614)		(221,055)
	$	(200,701)	$	(225,135)

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

	December 31, 2022		December 31, 2021
	(dollars in thousands)
Cash	$	1,272	$	21,100
U.S treasuries and govt. sponsored agency securities		—		3,555
Municipal securities		8,227		139,166
Residential mortgage-backed and related securities		29,257		65,104
	$	38,756	$	228,925

Summary of impact of AOCI

	Year Ended
	December 31, 2022		December 31, 2021
	(dollars in thousands)
Unrealized loss at beginning of period, net of tax	$	(4,373)	$	(7,632)
Amount reclassified from accumulated other comprehensive income to interest expense related to caplet amortization		(1,001)		697
Amount of gain (loss) recognized in other comprehensive income, net of tax		(14,847)		2,562
Unrealized loss at end of period, net of tax	$	(20,221)	$	(4,373)

	Year Ended December 31, 2022				Year Ended December 31, 2021				Year Ended December 31, 2020
	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	$	292,571	$	61,451	$	200,155	$	21,922	$	198,373	$	31,423
The effects of cash flow hedging:
Gain (loss) on cash flow hedges:
Interest rate caps on deposits		-		(1,405)		-		697				551
Interest rate swaps on variable rate loans		(829)		-		1,006		-		-		185
Interest rate swaps on junior subordinated debentures		-		462		-		1,114		-		832

Interest rate cap

Notes Tables

Schedule of interest rate caps

			Balance Sheet					Fair Value as of
Hedged Item	Effective Date	Maturity Date	Location	Notional Amount		Strike Rate		December 31, 2022		December 31, 2021
(dollars in thousands)
Deposits	1/1/2020	1/1/2023	Derivatives - Assets	$	25,000	1.75	%	$	(50)	$	5
Deposits	1/1/2020	1/1/2023	Derivatives - Assets		50,000	1.57	%		-		11
Deposits	1/1/2020	1/1/2023	Derivatives - Assets		25,000	1.80	%		-		5
Deposits	1/1/2020	1/1/2024	Derivatives - Assets		25,000	1.75	%		714		60
Deposits	1/1/2020	1/1/2024	Derivatives - Assets		50,000	1.57	%		1,566		125
Deposits	1/1/2020	1/1/2024	Derivatives - Assets		25,000	1.80	%		783		62
Deposits	1/1/2020	1/1/2025	Derivatives - Assets		25,000	1.75	%		1,264		161
Deposits	1/1/2020	1/1/2025	Derivatives - Assets		50,000	1.57	%		2,700		332
Deposits	1/1/2020	1/1/2025	Derivatives - Assets		25,000	1.80	%		1,350		166
				$	300,000			$	8,327	$	927

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, 2022		December 31, 2021
(dollars in thousands)
1/1/2020	1/3/2023	Derivatives - Assets	$	25,000	1.90	%	$	3	$	3
2/1/2020	2/1/2024	Derivatives - Assets		25,000	1.90	%		822		62
3/1/2020	3/3/2025	Derivatives - Assets		25,000	1.90	%		1,388		173
			$	75,000			$	2,213	$	238

Interest rate swap

Notes Tables

Schedule of interest rate caps

			Balance Sheet							Fair Value as of
Hedged Item	Effective Date	Maturity Date	Location	Notional Amount		Receive Rate		Pay Rate		December 31, 2022		December 31, 2021
(dollars in thousands)
Loans	7/1/2021	7/1/2031	Derivatives - Liabilities	$	35,000	1.40	%	4.12	%	$	(5,646)	$	(17)
Loans	7/1/2021	7/1/2031	Derivatives - Liabilities		50,000	1.40	%	4.12	%		(8,066)		(25)
Loans	7/1/2021	7/1/2031	Derivatives - Liabilities		40,000	1.40	%	4.12	%		(6,464)		(34)
Loans	10/1/2022	7/1/2031	Derivatives - Liabilities		25,000	1.30	%	4.12	%		(4,018)		(13)
Loans	4/1/2022	4/1/2027	Derivatives - Liabilities		15,000	1.91	%	4.12	%		(1,144)		N/A
Loans	4/1/2022	4/1/2027	Derivatives - Liabilities		50,000	1.91	%	4.12	%		(3,812)		N/A
Loans	4/1/2022	4/1/2027	Derivatives - Liabilities		35,000	1.91	%	4.12	%		(2,669)		N/A
Loans	4/1/2022	4/1/2027	Derivatives - Liabilities		50,000	1.91	%	4.12	%		(3,812)		N/A
				$	300,000					$	(35,631)	$	(89)

				Balance Sheet							Fair Value as of
Hedged Item	Effective Date		Maturity Date	Location	Notional Amount		Receive Rate		Pay Rate		December 31, 2022		December 31, 2021
		(dollars in thousands)
QCR Holdings Statutory Trust II	9/30/2018		9/30/2028	Derivatives - Liabilities	$	10,000	6.52	%	5.85	%	$	464	$	(1,035)
QCR Holdings Statutory Trust III	9/30/2018		9/30/2028	Derivatives - Liabilities		8,000	6.52	%	5.85	%		372		(828)
QCR Holdings Statutory Trust V	7/7/2018		7/7/2028	Derivatives - Liabilities		10,000	4.06	%	4.54	%		459		(996)
Community National Statutory Trust II	9/20/2018		9/20/2028	Derivatives - Liabilities		3,000	6.92	%	5.17	%		140		(309)
Community National Statutory Trust III	9/15//2018		9/15/2028	Derivatives - Liabilities		3,500	5.04	%	4.75	%		163		(360)
Guaranty Bankshares Statutory Trust I	9/15/2018		9/15/2028	Derivatives - Liabilities		4,500	5.04	%	4.75	%		209		(463)
Guaranty Statutory Trust II*	5/23/2019		2/23/2026	Derivatives - Assets		10,310	6.14	%	4.09	%		477		N/A
					$	49,310					$	2,284	$	(3,991)

* As part of the acquisition of GFED in 2022, the Company assumed one interest rate swap.

Changes in the fair value of the underlying derivative contracts

		December 31, 2022			December 31, 2021
	Notional Amount		Estimated Fair Value		Notional Amount		Estimated Fair Value
	(dollars in thousands)
Non-Hedging Interest Rate Derivatives Assets:
Interest rate swap contracts	$	2,528,949	$	166,614	$	2,024,599	$	221,055
Non-Hedging Interest Rate Derivatives Liabilities:
Interest rate swap contracts	$	2,528,949	$	166,614	$	2,024,599	$	221,055

Interest rate collar

Notes Tables

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, 2022

December 31, 2021

Loans

10/1/2022

10/1/2026

Derivatives - Liabilities

$

50,000

4.40

%

2.44

%

$

(263)

$

N/A