Exhibit 99.3

November 2002

To Our Stockholders

It was great to see so many of you at our recent stockholders' meeting. As those
of you who were able to attend the meeting or read our recent press releases are
aware, we have had significant news to report recently.

We are pleased to announce  strong  earnings for the quarter ended September 30,
2002 that were slightly less than $1.2 million,  or basic  earnings per share of
$.42,  as  compared  to $648  thousand  or $.26 per share  for the year  earlier
quarter. The Company recognized a significant increase in net interest income of
$1.3 million for this  quarter  over the same period in 2001.  Gains on sales of
residential  real  estate  loans  were  also a  significant  contributor  to our
earnings  results for the  quarter as the Company  realized an increase in these
gains  of $251  thousand  over the  previous  year.  In  addition,  the  Company
experienced  tremendous growth this quarter of more than $50 million, to end the
quarter at $568.8 million in total assets.

At our stockholders'  meeting, we announced that the Board of Directors declared
the  Company's  first cash  dividend to  stockholders.  The dividend of $.05 per
share will be payable on January 3, 2003 to  stockholders  of record on December
16, 2002. It is the Company's  intention to consider the payment of dividends on
a semi-annual  basis.  While we anticipate an ongoing need to retain much of the
Company's  operating income to help provide the capital for continued growth, we
believe  that  operating  results  have  reached  a level  where we can  sustain
dividends to our stockholders as well.

On October 22, we announced the sale of the Independent Sales Organization (ISO)
related  merchant credit card  operations of our subsidiary,  Quad City Bancard,
Inc.  (Bancard),  to iPayment,  Inc. in a transaction that resulted in a gain of
approximately  $1.2 million or $.44 per share.  Historically,  Bancard's largest
source  of  revenue  has  been  derived  from  providing  merchant  credit  card
processing to merchants of ISOs.  iPayment had recently  acquired two large ISOs
that provided  nearly 75% of Bancard's  ISO  processing  volume.  In addition to
negotiating  the  compensation  we were to  receive  for  the  transfer  of this
processing volume, we decided to sell the processing rights of our remaining ISO
business, as well as the merchant credit card processing  relationships owned by
Bancard's  ISO  subsidiary,  Allied  Merchant  Services,  Inc. This gain will be
reported in our December 2002 quarterly results.

Bancard will continue to provide merchant  processing services for Quad City and
Cedar Rapids area merchants and to  approximately  80 agent banks.  We will also
continue to provide  cardholder  services to customers of Quad City Bank & Trust
and Cedar  Rapids  Bank & Trust,  as well as the agent  banks.  John  Schricker,
President  of Bancard,  plans to  semi-retire  prior to the end of 2002 and will
provide  consulting  assistance to Bancard,  while Executive Vice President Bill
Brockway will leave in November to form his own ISO.

On behalf of our entire  organization,  we wish to thank John,  Bill,  and their
staff for their efforts in making Bancard a financial success.

Cedar Rapids Bank & Trust (CRBT) continues to make  outstanding  progress toward
profitability  as it reached  its first  anniversary  as a charter in  September
2002.  The new bank's  after-tax  operating  losses were $172  thousand  for the
quarter,  which continue to run slightly  better than  anticipated,  while asset
growth  continues to exceed  expectations.  CRBT  continues to be a  significant
contributor  to the Company's  growth in assets,  loans,  and deposits since our
opening in September of 2001. We have  experienced  rapid growth in CRBT's first
twelve months of operations,  reaching total assets of $78.2 million,  net loans
of $62.6 million, and deposits of $51.8 million, as of September 30, 2002.

The Company's total assets increased 10% to $568.8 million at September 30, 2002
from  $518.8  million  at June 30,  2002.  During  the same  period,  net  loans
increased by $39.2 million or 10% to $423.7  million from $384.5 million at June
30, 2002.  Non-performing assets increased to $4.8 million at September 30, 2002
from $2.3 million at June 30, 2002 and $3.2 million at  September  30, 2001.  At
September 30, 2002 non-performing assets were 1.10% of gross loans in comparison
to 1.04% of gross loans at September 30, 2001.  Total  deposits  increased 8% to
$405.4  million at  September  30,  2002 from $376.3  million at June 30,  2002.
Stockholders'  equity rose to $34.5 million at September 30, 2002 as compared to
$32.6 million at June 30, 2002.

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The increase in  non-performing  assets from June 30, 2002 to September 30, 2002
was primarily due to one  commercial  lending  relationship  at Quad City Bank &
Trust.  The bank is working  closely with this  customer in an attempt to remedy
the situation. Like many other financial institutions, some of our customers are
experiencing  difficulty in this lagging economy,  which could lead to increased
loan loss  reserves.  Given the continued  soft  economy,  management is closely
monitoring and providing reserves for the Company's loan portfolio.

Since our formation in February  1993,  our fiscal year end has been June 30. On
August 21, 2002, our Board of Directors approved a change in the fiscal year end
to  December  31.  We will file a Form 10-K  with the  Securities  and  Exchange
Commission for the transition period July 1, 2002 through December 31, 2002.

The economic picture is cloudy at best. Economists are mixed in their advice for
the economy and the Federal  Reserve.  While rates were  already at their lowest
point in 40 years, Fed officials recently cut rates further, moving preemptively
against further economic  weakness.  It would appear that the economy is not the
only source of weakness. The tensions with Iraq and concerns regarding corporate
governance may not be so easily addressed by monetary policy.

Many of you have read of the Sarbanes-Oxley Act of 2002. The stated goals of the
Act are to increase corporate responsibility,  to provide for enhanced penalties
for accounting and auditing  improprieties at publicly traded companies,  and to
protect  investors.  We have  studied the Act closely and  recently our Board of
Directors  formed  an  Executive   Committee   (comprised   solely  of  outside,
independent  directors),  which  met to  review  the Act and its  impact  on the
Company.  We  feel  strongly  that  the  underlying  principals  of the  act are
consistent  with our  corporate  philosophy,  which we have adhered to since our
inception almost a decade ago.

We continue to have a positive  outlook about our business.  Our stock price has
held fairly  constant  this past  quarter amid the major stock market slump and,
despite extreme market volatility, bank stocks have performed relatively well.

Thanks  to  our  customers,  stockholders,  and  employees  for  your  continued
confidence.



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