QCR HOLDINGS INC

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 30, 2026

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation: The interim unaudited Consolidated Financial Statements contained herein should be read in conjunction with the audited Consolidated Financial Statements and accompanying notes to the Consolidated Financial Statements for the fiscal year ended December 31, 2025, included in the Company's Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 27, 2026. Accordingly, footnote disclosures, which would substantially duplicate the disclosures contained in the audited Consolidated Financial Statements, have been omitted.

The financial information of the Company included herein has been prepared in accordance with GAAP for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. Any differences appearing between the numbers presented in financial statements and management's discussion and analysis are due to rounding. The results of the interim period ended September 30, 2026 are not necessarily indicative of the results expected for the year ending December 31, 2026, or for any other period.

The acronyms and abbreviations identified below are used throughout this Quarterly Report on Form 10-Q. It may be helpful to refer back to this page as you read this report.

The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries which include the accounts offour commercial banks: QCBT, CRBT, CSB and GB. Allfour banks are state-chartered commercial banks and all are members of the Federal Reserve system. The Company has historically engaged in direct financing lease contracts through m2, a wholly owned subsidiary of QCBT. Since the third quarter of 2024, m2 has discontinued offering new loans and leases. Additionally, the Company also engages in wealth management services through its banking subsidiaries. All material intercompany transactions and balances have been eliminated in consolidation.

HTM Securities: During the third quarter of 2026, the Company identified an error in the fair values previously disclosed for certain capital appreciation bonds classified as held-to-maturity securities. The error understated the disclosed fair value of these securities and overstated the related disclosed unrealized losses. The error did not affect the amortized cost carrying amounts of the securities or any amounts recognized in the Company’s consolidated financial statements. The Company evaluated the error and concluded that it was not material to the previously issued annual or interim financial statements. The applicable prior period comparative disclosure presented in this Form 10-Q for the quarter ended September 30, 2026 reflects the corrected information. The revision increased the previously disclosed fair value of held-to-maturity securities by approximately $83.2 million as of June 30, 2026, approximately $66.7 million as of March 31, 2026, and approximately $63.0 million as of December 31, 2025, with corresponding decreases in the previously disclosed net unrealized losses.

Derivatives: During the first quarter of 2026, the Company elected to present certain derivative assets and liabilities on a net basis when such instruments are subject to a legally enforceable master netting arrangement and the company has the intent to settle on a net basis or simultaneously, in accordance with ASC 210-20 “Balance Sheet – Offsetting”. This election applies to all derivative instruments executed with the same counterparty under legally enforceable ISDA master netting arrangements and, where applicable, related cash collateral recognized under ASC 815. Certain derivative positions may remain presented on a gross basis even when subject to a master netting arrangement if they do not meet the balance sheet offsetting criteria as of the reporting date. Master netting arrangements give the Company the ability, in the event of default by the counterparty, to liquidate collateral and to offset receivables and payables with the same counterparty. This change affects the presentation of derivative assets and liabilities on the consolidated balance sheets but does not impact net income or total stockholders’ equity. The reclassification of prior-period amounts was made to conform with the current-period presentation, as the derivative instruments were subject to legally enforceable master netting arrangements in prior periods and no changes occurred to the underlying contractual rights.

Netting adjustments represent amounts recorded to convert derivative assets and derivative liabilities from a gross basis to a net basis in accordance with ASC 815, consistent with the balance sheet presentation. Cash collateral receivables and payables are included in balance sheet netting when they meet the criteria for offsetting under ASC 815-10-45-5A. The net basis represents the aggregate of our net exposure to each counterparty after considering the balance sheet netting adjustments and any cash collateral. The Company manages derivative exposure by monitoring the credit risk associated with each counterparty using counterparty-specific credit risk limits, using master netting arrangements and obtaining collateral.

The consolidated balance sheet as of December 31, 2025 presented herein reflects a reclassification of $77.3 million between assets and liabilities to match current period balance sheet presentation. See Note 5 of the Consolidated Financial Statements for additional information regarding the gross and net presentation of derivative instruments.

Reclassifications: Certain amounts in the prior year’s Consolidated Financial Statements have been reclassified, with no effect on net income or stockholders’ equity to conform with the current period presentation.

Recent accounting developments:

In December 2023, the FASB issued ASU 2023-09,“Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” Under the standard, the accounting guidance enhances the transparency and decision usefulness of income tax disclosures. Investors, lenders, creditors and other allocators of capital information will be able to use the expanded disclosures to better assess how an entity’s operations and related tax risks and tax planning and operation opportunities affect its tax rate and prospects for future cash flows. The ASU is effective for public business entities for annual periods beginning after December 15, 2024. The standard was adopted for the year ending December 31, 2025, and newly required

disclosures have been provided in Note 6 to the Consolidated Financial Statements. The ASU did not have a material impact on the Company’s financial statements.

In March 2024, the FASB issued ASU 2024-01,“Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards.” Under the standard, the accounting guidance improves GAAP by adding an illustrative example to demonstrate how an entity should apply the scope guidance of “Topic 718, Compensation - Stock Compensation” for profits interest and similar awards. The illustrative examples will benefit investors and other allocators of capital by providing them with more consistent information. The ASU is effective for public business entities for annual periods beginning after December 15, 2024, and interim periods within those annual periods. The standard was adopted on January 1, 2025 and did not have a significant impact on the Company’s financial statements.

In November 2024, the FASB issued ASU 2024-03,“Disaggregation of Income Statement Expenses.” Under the standard, the accounting guidance improves disclosures about a public business entity’s expenses, and provides more detailed information about the types of expenses in commonly presented expense captions. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. The standard is not expected to have a material impact on the Company’s financial statements; however, it will require expanded disaggregation of certain income statement expense captions in the notes to the financial statements in 2027.

In May 2025, the FASB issued ASU 2025-03,“Business Combinations (Topic 805) and Consolidated (Topic 810): Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity.” Under the standard, the accounting guidance limits situations in which entities must identify the primary beneficiary as the accounting acquirer in certain business combinations and requires entities to consider the general factors in Topic 805 when a business combination involving a VIE is primarily effected through exchanging equity interests. The ASU is effective prospectively to annual and interim reporting periods after December 15, 2026. The standard is not expected to have a significant impact on the Company’s financial statements.

In September 2025, the FASB issued ASU 2025-06,“Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” Under the standard, the accounting guidance changes the cost capitalization threshold by eliminating accounting consideration of software project development stages; cost capitalization would begin when (1) management has authorized and committed to funding the project and (2) it is “probable” the project will be completed and the software used to perform its intended function; and enhancing the guidance around the probable-to-complete threshold. The standard also modifies the website development costs guidance. The ASU is effective for annual and interim reporting periods after December 15, 2027 and early adoption is permitted. The standard is not expected to have a significant impact on the Company’s financial statements.

In September 2025, the FASB issued ASU 2025-07,“Derivatives Scope Refinements and Scope Clarification for Share-Based Noncash Consideration from a Customer in a Revenue Contract.” Under the standard, the accounting guidance refines the scope of Topic 815 (derivatives) by adding a scope exception from derivative accounting for contracts that (1) are not exchange traded and (2) have underlying variables based on operations or activities specific to one of the parties to the contract. The accounting guidance also clarifies that revenue guidance in Topic 606 applies initially to share-based noncash consideration received from a customer for the transfer of goods or services. The ASU is effective in interim and annual periods for fiscal years beginning after December 15, 2026 and may be applied either on a prospective or modified retrospective basis. Early adoption is permitted. The standard is not expected to have a significant impact on the Company’s financial statements.

In November 2025, the FASB issued ASU 2025-08,“Purchased Loans.” Under the standard, the accounting guidance expands the use of the gross-up method to certain acquired loans beyond purchased financial assets with credit deterioration (PCD assets). The ASU is effective for interim and annual and reporting periods in fiscal years beginning after December 15, 2026, and is applied on a prospective basis. Early adoption is permitted. The standard is not expected to have a significant impact on the Company’s financial statements.

In November 2025, the FASB issued ASU 2025-09,“Hedge Accounting Improvements.” Under the standard, the accounting guidance is intended to more closely align financial reporting with the economics of some of an entity’s risk management activities. The guidance is applied prospectively to all hedging relationships beginning on or after the date of adoption without dedesignation. The ASU is effective prospectively to annual and interim reporting periods after

December 15, 2026. Early adoption is permitted. The standard is not expected to have a significant impact on the Company’s financial statements.

In December 2025, the FASB issued ASU 2025-11,“Interim Reporting (Topic 270): Narrow-Scope Improvements.” Under the standard, the accounting guidance clarifies the form and content choices for interim financial statements and accompanying notes, adds a comprehensive list of required interim disclosures, and introduces a disclosure principle that requires disclosure of events since the end of the previous annual reporting period that materially affect the entity. The guidance is not intended to significantly change interim reporting or expand or reduce interim disclosure requirements. The ASU is effective for interim reporting periods in fiscal years beginning after December 15, 2027. Early adoption is permitted. The standard is not expected to have a significant impact on the Company’s financial statements.

In December 2025, the FASB issued ASU 2025-12,“Codification Improvements” Under the standard, the accounting guidance enhances the usability of the Codification by refining accounting guidance and streamlining its application through technical corrections, making standards more consistent and easier to interpret for preparers and users. The ASU is effective for annual and interim reporting periods beginning after December 15, 2026. The standard is not expected to have a significant impact on the Company’s financial statements.

NOTE 2 – INVESTMENT SECURITIES

The amortized cost and fair value of investment securities as of September 30, 2026 and December 31, 2025 are summarized as follows:

The Company's HTM municipal securities consist largely of private issues of municipal debt. The large majority of the municipalities are located within the greater Midwest. The municipal debt investments are underwritten using specific guidelines with ongoing monitoring.

The Company's residential mortgage-backed and related securities portfolio consists entirely of government sponsored or government guaranteed securities. The Company has not invested in private mortgage-backed securities or pooled trust preferred securities.

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2026, and December 31, 2025, are summarized in the tables below. Securities AFS, for which an allowance for credit losses has been provided, are not included in these disclosures as there are no unrealized losses remaining after consideration of the ACL.

As of September 30, 2026, the investment portfolio included 688 securities. Of this number,627 securities were in an unrealized loss position. The aggregate losses of these securities totaled approximately 13.6% of the total amortized cost of the portfolio. Of these 627 securities, there were 368 securities that were in an unrealized loss position for twelve months or more. Management has concluded unrealized losses as of September 30, 2026 were temporary due to the changing interest rate environment.

There wasno allowance for credit losses for available for sale securities for each of the three and nine months ended September 30, 2026 and 2025. The following tables present the activity in the allowance for credit losses for held to maturity securities by major security type for the three and nine months ended September 30, 2026 and 2025:

Trading securities had a fair value of $116.1 million as of September 30, 2026 and $83.9 million as of December 31, 2025 and consisted of retained beneficial interests acquired in conjunction with Freddie Mac securitizations completed by the Company. The change in fair value on trading securities for the nine months ended September 30, 2026 and 2025 was a net gain of $397 thousand and a net gain of $530 thousand, respectively. See also Note 4 to the Consolidated Financial Statements for details of these securitizations.

There wereno transfers of securities between classifications during either the three or nine months ended September 30, 2026 or 2025.

There wereno sales of securities during either the three and nine months ended September 30, 2026 or 2025.

The amortized cost and fair value of securities as of September 30, 2026 by contractual maturity are shown below. Expected maturities of residential mortgage-backed and related securities and asset-backed securities may differ from contractual maturities because the residential mortgages underlying the securities may be prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following table:

Portions of the U.S. government sponsored agency securities and municipal securities contain call options, which, at the discretion of the issuer, terminate the security at par and at predetermined dates prior to the stated maturity, summarized as follows as of September 30, 2026:

As of September 30, 2026, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 81 issuers with fair values totaling $94.6 million and revenue bonds, issued by 159 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $939.7 million. The Company also held investments in general obligation bonds in 18 states, including 9 states in which the aggregate fair value exceeded $5.0 million, and in revenue bonds in 31 states, including 14 states in which the aggregate fair value exceeded $5.0 million.

As of December 31, 2025, the Company's municipal securities portfolios were comprised of general obligation bonds issued by 80 issuers with fair values totaling $106.8 million and revenue bonds, issued by 164 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $942.3 million. The Company held investments in general obligation bonds in 18 states, including nine* *states in which the aggregate fair value exceeded $5.0 million, and in revenue bonds in 31 states, including 14 states in which the aggregate fair value exceeded $5.0 million.

The Company monitors the investments and concentration closely. Both general obligation and revenue bonds are diversified across many issuers. As of September 30, 2026 and December 31, 2025, the Company did not hold general obligation bonds of any single issuer, that in aggregate exceed 10% of the Company’s stockholders’ equity. Of the general obligation and revenue bonds in the Company's portfolio, the majority are unrated bonds that represent private issuances. All unrated bonds were underwritten according to the Company’s loan underwriting standards and have an average loan risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential municipal services such as water, sewer, education, and medical facilities.

The Company's municipal securities are owned by itsfour subsidiary banks, whose investment policies set forth limits for various subcategories within the municipal securities portfolio. The investments of each charter are monitored individually, and as of September 30, 2026, all were within policy limitations approved by the Company’s board of directors. Policy limits are calculated as a percentage of each charter's total risk-based capital.

As of September 30, 2026, the Company's standard monitoring of its municipal securities portfolio had not uncovered any facts or circumstances resulting in significantly different credit ratings than those assigned by a nationally recognized statistical rating organization, or in the case of unrated bonds, the rating assigned using the credit underwriting standards.

The following table summarizes the fair value of investment securities pledged and held under derivatives, public deposits, short-term borrowings and other borrowings as of September 30, 2026 and December 31, 2025:

• Municipal securities with an amortized cost of $167.9 million and $176.6 million were pledged on secured borrowings as of September 30, 2026 and December 31, 2025, respectively.

NOTE 3 – LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of September 30, 2026 and December 31, 2025 is presented as follows:

• Includes equipment financing agreements outstanding through m2, totaling $106.8 million and $178.1 million as of September 30, 2026 and December 31, 2025, respectively.

** Management performs an evaluation of the estimated unguaranteed residual values of leased assets on an annual basis, at a minimum. The evaluation consists of discussions with reputable and current vendors, which is combined with management's expertise and understanding of the current states of particular industries to determine informal valuations of the equipment. As necessary and where available, management will utilize valuations by independent appraisers. The majority of leases with residual values contain a lease options rider, which requires the lessee to pay the residual value directly, finance the payment of the residual value, or extend the lease term to pay the residual value. In these cases, the residual value is protected and the risk of loss is minimal.

*** Includes residential real estate loans held for sale totaling $2.4 million and $1.4 million as of September 30, 2026 and December 31, 2025, respectively.

Accrued interest on loans, which is excluded from the amortized cost of loans, totaled $30.4 million and $32.8 million at September 30, 2026 and December 31, 2025, respectively, and was included in Other Assets on the consolidated balance sheets.

The aging of the loan/lease portfolio by classes of loans/leases as of September 30, 2026 and December 31, 2025 is presented as follows and all loans held for sale are current:

NPLs by classes of loans/leases as of September 30, 2026 and December 31, 2025 are presented as follows and all loans held for sale are performing and not included in this table:

The Company did not recognize any interest income on nonaccrual loans during the three and nine months ended September 30, 2026 or 2025.

• Included within the C&I – Other column are ACL on leases with a beginning balance of $212 thousand, negative provision of $21 thousand, andno charge-offs or recoveries. The ACL on leases was $191 thousand as of September 30, 2026.

** Included within the C&I – Other column are ACL on leases with a beginning balance of $311 thousand, negative provision of $341 thousand, charge-offs of $5 thousand and recoveries of $226 thousand. The ACL on leases was $191 thousand as of September 30, 2026.

• Included within the C&I – Other column are ACL on leases with a beginning balance of $423 thousand, negative provision of $41 thousand, charge-offs of $12 thousand and recoveries of $9 thousand. The ACL on leases was $379 thousand as of September 30, 2025.

** Included within the C&I – Other column are ACL on leases with a beginning balance of $580 thousand, provision of $13 thousand, charge-offs of $233 thousand and recoveries of $19 thousand. The ACL on leases was $379 thousand as of September 30, 2025.

The composition of the ACL on loans/leases held for investment by portfolio segment based on evaluation method as of September 30, 2026 and December 31, 2025 are as follows:

• Included within the C&I – other category are leases individually evaluated of $52 thousand with a related allowance for credit losses of $15 thousand and leases collectively evaluated of $5.6 million with a related allowance for credit losses of $176 thousand as of September 30, 2026.

• Included within the C&I – other category are leases individually evaluated of $54 thousand with a related allowance for credit losses of $16 thousand and leases collectively evaluated of $9.5 million with a related allowance for credit losses of $295 thousand as of December 31, 2025.

The following table presents the amortized cost basis of collateral dependent loans, by the primary collateral type, which are individually evaluated to determine expected credit losses as of September 30, 2026 and December 31, 2025:

• Included within the C&I – other category are leases individually evaluated of $52 thousand with primary collateral of equipment.

• Included within the C&I – other category are leases individually evaluated of $54 thousand with primary collateral of equipment.

For all loans except direct financing leases and equipment financing agreements, the Company’s credit quality indicator consists of internally assigned risk ratings. Each such loan is assigned a risk rating upon origination. The risk rating is reviewed every 15 months, at a minimum, and on an as-needed basis depending on the specific circumstances of the loan.

For certain C&I loans (including equipment financing agreements and direct financing leases), the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system.

The following tables show the credit quality indicator of loans by class of receivable and year of origination as of September 30, 2026, and all loans held for sale are included in the pass rated line:

• Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual and accruing loans/leases that are greater than or equal to 90 days past due.

The following tables show the credit quality indicator of loans by class of receivable and year of origination as of December 31, 2025, and all loans held for sale are included in the pass rated line: