Financial Analysis

Note 19. Commitments and Contingencies In the normal course of business, the subsidiary banks make various commitments and incur certain contingent liabilities that are not presented in the accompanying Consolidated Financial Statements. The commitments and contingent liabilities include various guarantees, commitments to extend credit, and standby letters of credit. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The subsidiary banks evaluate each customers creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the subsidiary banks upon extension of credit, is based upon managements credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, marketable securities, inventory, property, plant and equipment and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the subsidiary banks to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements and, generally, have terms of one year or less. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Note 11. Other Borrowings and Unused Lines of Credit In August 2025, the Company pledged a portion of its HTM municipal securities portfolio in exchange for term borrowings through a repurchase agreement. The repurchase agreements are reported as secured borrowings, as the Company maintains effective control of the financed assets. The secured borrowing carries a fixed rate of 4.0% until the remarketing date of July 1, 2028, at which time the interest rate would change based on a remarketed rate or a fixed rate of 6.0% if remarketing fails. Principal and interest are paid semiannually on January 1 and July 1 of each year. The table below sets forth information regarding the Companys repurchase agreements accounted for as secured other borrowings on the consolidated balance sheets for December 31, 2025 and 2024. Refer to Note 2 to the Consolidated Financial Statements for collateral pledged and held under our repurchase agreements. Amount Outstanding Interest Rate Amount Outstanding Interest Rate as of December 31, 2025 as of December 31, 2025 as of December 31, 2024 as of December 31, 2024 Maturity Date (dollars in thousands) Repurchase agreement $ 110,539 4.00 % $ N/A N/A % 1/1/2055 Issuance costs (3,144) N/A Total other borrowings $ 107,395 $ N/A In the second quarter of 2025, the Company renewed its revolving line of credit with a third-party financial institution. At renewal, the available line amount increased from $50.0 million to $60.0 million for which there was no ou …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Note 16. Stock-Based Compensation The Companys board of directors adopted in February 2013, and its stockholders approved in May 2013, the QCR Holdings, Inc. 2013 Equity Incentive Plan (2013 Equity Incentive Plan). The Companys board of directors adopted in February 2016, and its stockholders approved in May 2016, the QCR Holdings, Inc. 2016 Equity Incentive Plan (2016 Equity Incentive Plan). The Companys board of directors adopted in February 2024, and its stockholders approved in May 2024, the QCR Holdings, Inc. 2024 Equity Incentive Plan (2024 Equity Incentive Plan). Up to 350,000, 350,000, 400,000 and 600,000 shares of common stock, respectively, may be issued to employees and directors of the Company and its subsidiaries pursuant to equity incentive awards granted under these plans. The 2010 Equity Incentive Plan, the 2013 Equity Incentive Plan, the 2016 Equity Incentive Plan and the 2024 Equity Incentive Plan (collectively, the Equity Plans) are administered by the Compensation Committee of the board of directors (the Committee). As of December 31, 2025, there were 575,123 remaining shares of common stock available for the grant of future awards under the Equity Plans; however, such future awards may be granted only under the 2024 Equity Incentive Plan. The number and exercise price of options granted under the Equity Plans are determined by the Committee at the time the option is granted. In no event can the exercise price be less than the value of the common stock at …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Note 21. Fair Value Accounting guidance on fair value measurements uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows: Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in markets; Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement Assets measured at fair value on a recurring basis comprised the following at December 31, 2025 and 2024: Fair Value Measurements at Reporting Date Using Quoted Prices Significant in Active Other Significant Markets for Observable Unobservable Identical Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) (dollars in thousands) December 31, 2025: Securities AFS: U.S. treasuries and govt. sponsored agency securities $ 16,024 $ $ 16,024 $ Residential mortgage-backed and related securities 68,855 68,855 Municipal securities 163,085 163,085 Asset-backed securities 4,439 4,439 Corporate securities 27,374 27,374 Securities trading 83,857 83,857 Derivati …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

Note 6. Goodwill and Intangibles The following table presents the changes in the carrying amount of goodwill for the years ended December 31, 2025, 2024 and 2023: 2025 2024 2023 (dollars in thousands) Balance at the beginning of period $ 138,595 $ 139,027 $ 137,607 Acquisition of GFED - measurement period adjustment 1,420 Goodwill impairment - m2 restructuring (432) Balance at the end of period $ 138,595 $ 138,595 $ 139,027 Goodwill impairment expense totaled $432 thousand during the year ended December 31, 2024. The decision to discontinue offering new loans and leases through m2 was a triggering event that necessitated an interim impairment evaluation of goodwill. The measurement period adjustment of $1.4 million during the year ended December 31, 2023 related to the changes to acquired deferred income taxes of GFED. The following table presents goodwill by reportable segment: December 31, 2025 December 31, 2024 December 31, 2023 (dollars in thousands) Commercial banking: QCBT $ 2,791 $ 2,791 $ 3,223 CRBT 14,980 14,980 14,980 CSB 9,888 9,888 9,888 GB 110,936 110,936 110,936 $ 138,595 $ 138,595 $ 139,027 At November 30, 2025 and 2024, the Companys management performed an annual internal assessment of goodwill at the reporting unit level and determined no impairment existed at either date. Note 6. Goodwill and Intangibles (continued) The following table presents the changes in core deposit intangibles (included in Intangibles on the consolidated balance sheets) during the yea …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Note 14. Federal and State Income Taxes Federal and state income tax expense was comprised of the following components for the years ended December 31, 2025, 2024, and 2023: 2025 2024 2023 (dollars in thousands) Current Federal $ 7,747 $ 12,823 $ 9,827 State 3,301 3,096 4,181 Total current $ 11,048 $ 15,919 $ 14,008 Deferred Federal $ (3,270) $ (7,613) $ (1,198) State 930 421 252 Total deferred $ (2,340) $ (7,192) $ (946) Total income tax Federal $ 4,477 $ 5,210 $ 8,629 State 4,231 3,517 4,433 Total income tax $ 8,708 $ 8,727 $ 13,062 A reconciliation of the expected federal income tax expense to the income tax expense included in the consolidated statements of income was as follows for the years ended December 31, 2025, 2024, and 2023: Year Ended December 31, 2025 2024 2023 % of % of % of Pretax Pretax Pretax Amount Income Amount Income Amount Income (dollars in thousands) U.S. federal statutory tax rate $ 28,539 21.0 % $ 25,741 21.0 % $ 26,590 21.0 % State and local income taxes, net of federal income tax effect (*) 4,231 3.1 3,517 2.9 4,433 3.5 Tax credits Low income housing tax credits (2,470) (1.8) (1,784) (1.5) (1,922) (1.5) Other credits (172) (0.1) (431) (0.4) (735) (0.6) Nontaxable or nondeductible items Tax exempt income, net (32,560) (24.0) (28,987) (23.6) (22,437) (17.7) Interest disallowance 13,363 9.8 12,577 10.3 8,614 6.8 Bank-owned life insurance (706) (0.5) (1,142) (0.9) (875) (0.7) Meals and entertainment 125 0.1 123 0.1 134 0.1 Other (546) (0.4) (618) (0.5) …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent accounting developments : In March 2023, the FASB issued ASU 2023-02, Investments - Equity Method and Joint Venues (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method (a Consensus of the Emerging Issues Task Force). Under the standard, the accounting guidance expands use of the proportional amortization method of accounting to equity investments in tax credit programs beyond those in LIHTC programs. The ASU also prescribes specific information reporting entities must disclose about tax credit investments each period. The ASU is effective for reporting periods beginning after December 31, 2023, for public business entities, with all other entities having an extra year to adopt. Entities will have the option of applying the ASU using either a modified retrospective or retrospective adoption approach. For some changes related to existing LIHTC investments, prospective application is permitted. The standard was adopted on January 1, 2024 using the modified retrospective method, and comparative periods were not adjusted. The standard did not have a significant impact on the Companys financial statements. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. Under the standard, the accounting guidance expands the disclosures for reportable segments made by public entities to disclose significant expenses for reportable segments in both interim and a …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Note 15. Employee Benefit Plans The Company has a profit sharing plan, which includes a provision designed to qualify under Section 401(k) of the Internal Revenue Code of 1986, as amended, to allow for participants to defer a portion of their annual compensation under the profit sharing plan. Substantially all employees who are at least 18 years of age are eligible to participate in the plan. The Company matches 100% of an employees deferrals up to the first 3% of an employees annual compensation, and 50% of the next 3% of an employees deferred annual compensation, up to a maximum amount of 4.5% of an employees annual compensation. Additionally, at its discretion, the Company may make additional contributions to the plan, which are allocated to the accounts of participants in the plan based on relative compensation. There were no discretionary contributions for the years ended December 31, 2025, 2024 and 2023. Company matching contributions for the years ended December 31, 2025, 2024, and 2023 were as follows: 2025 2024 2023 (dollars in thousands) Matching contribution $ 3,753 $ 3,670 $ 3,314 The Company has entered into nonqualified supplemental executive retirement plans (SERPs) with certain executive officers. The SERPs allow certain executives to accumulate retirement benefits beyond those provided by the qualified retirement plan. Changes in the liability related to the SERPs, included in other liabilities, were as follows for the years ended December 31, 2025, 2024 and …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

N ote 22. Business Segment Information Selected financial and descriptive information is required to be disclosed for reportable operating segments, applying a management perspective as the basis for identifying reportable segments. The management perspective is determined by the view that management takes of the segments within the Company when making operating decisions, allocating resources, and measuring performance. The segments of the Company have been defined by the structure of the Companys internal organization, focusing on the financial information that the Companys operating decision-makers routinely use to make decisions about operating matters. The chief operating decision maker consists of the Chief Executive Officer and President of the Company. The chief operating decision maker reviews financial reports that detail the interest income, interest expense, provision for credit losses, noninterest income, salaries and benefits expense, occupancy expense, other noninterest expenses, income tax expense and net income from continuing operations and compares the actual results to the amounts budgeted and the reason for variances. The results of this review allow the Companys chief operating decision maker to make operating decisions and allocate resources. Capital markets revenue is considered a significant source of noninterest income. Salaries and benefits expense and occupancy expense are considered significant noninterest expenses. The Companys Commercial Banking …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Note 1. Nature of Business and Significant Accounting Policies Basis of presentation: The acronyms and abbreviations identified below are used in the Notes to the Consolidated Financial Statements, as well as in the other sections of this Annual Report on Form 10-K (including appendices). It may be helpful to refer back to this page as you read this report. ACL: Allowance for credit losses HTM: Held to maturity AFS: Available for sale ICS: Insured Cash Sweep Allowance: Allowance for credit losses ISDA: International Swaps and Derivatives Association AOCI: Accumulated other comprehensive income (loss) LCR: Liquidity Coverage Ratio ASC: Accounting Standards Codification LHFI: Loans held for investment ASC 805: Business Combination Standard LHFS: Loans held for sale ASU: Accounting Standards Update LIBOR: London Inter-Bank Offered Rate BHCA: Bank Holding Company Act of 1956 LIHTC: Low-income housing tax credit BOLI: Bank-owned life insurance m2: m2 Equipment Finance, LLC Caps: Interest rate cap derivatives MD&A: Managements Discussion & Analysis CDARS: Certificate of Deposit Account Registry Service Missouri Division of Finance: Missouri Department of CECL: Current Expected Credit Losses Commerce and Insurance CFPB: Bureau of Consumer Financial Protection NIM: Net interest margin CNB: Community National Bank NOL: Net operating loss Community National: Community National Bancorporation NPA: Nonperforming asset COVID-19: Coronavirus Disease 2019 NPL: Nonperforming loan CRA …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing