Exhibit 99.1


November 2003

To our Stockholders,

We are pleased to report strong  earnings for our third  quarter of 2003.  Basic
earnings  per share were $0.65 this past  quarter as  compared to $0.42 one year
ago. For the nine months ended September 30, 2003, earnings were $1.57 per share
as compared to $1.01 in 2002.  Significant  increases in net interest income and
gains on the sale of  residential  real estate  loans have  fueled the  improved
earnings.

Net interest  income for the three  months ended  September 30 increased by $1.0
million to $5.7 million in 2003 from $4.7  million in 2002.  For the nine months
ended September 30, 2003, net interest income was $15.7 million, up $2.6 million
from $13.1  million in 2002.  Strong  asset growth  resulted in the  significant
increase in net  interest  income.  This asset growth  offset a  compressed  net
interest margin percentage created by the prolonged low rate environment.

Gains on the sale of  residential  real estate  loans were $1.2  million for the
quarter,  almost identical to the prior quarter ended June 30, 2003. These gains
for the quarter ended September 30, 2002 were $713 thousand. For the nine months
ended  September  30, 2003,  gains were $3.3 million as compared to $1.5 million
for the same period in 2002.

Consolidated  assets totaled $683 million at September 30, 2003 up $115 million,
or 20%,  from $568 million at September  30, 2002.  Net loans have  increased to
$496 million from $430 million a year earlier, while during the same time period
total deposits have  increased from $405 million to $498 million.  Stockholders'
equity  increased to $40.7 million as compared to $34.5 million at September 30,
2003.

Some of our  commercial  customers  continue  to  experience  difficulty  in the
lagging  economy,  which has been a large  factor in causing us to increase  our
percentage of allowance  for estimated  loan losses to total loans from 1.53% at
December 31, 2002 to 1.77% at September 30, 2003. Much of our focus for the next
several quarters will be on improving the overall quality of the loan portfolio.

Cedar  Rapids Bank & Trust  continues  to be a  significant  contributor  to the
Company's  growth in assets,  loans,  and deposits since opening in September of
2001. In only two years, the bank has reached total assets of $142 million,  net
loans of $102 million and  deposits of $101  million as of  September  30, 2003.
Cedar Rapids Bank & Trust has also achieved  profitability on a monthly basis as
the bank had  after-tax  net income of $147  thousand  for the nine months ended
September  30, 2003,  as compared to an after-tax  loss of $649 thousand for the
same period in 2002.

Quad City  Bancard,  Inc.  had a strong  quarter  with fees of $784  thousand as
compared to $688 thousand in the same quarter of the prior year. We sold the ISO
portion of Bancard's business in October of 2002, and as of the end of this past
quarter,  we are no  longer  processing  those  transactions.  As a  result,  we
anticipate that Bancard's quarterly after-tax net income will likely approximate
break even to $30 thousand  initially,  as compared to  after-tax  net income of
$741 thousand for the first nine months of 2003.

We recently  announced plans for a fifth Quad City Bank & Trust banking facility
to be located in west  Davenport.  This facility will likely be completed in mid
to late 2004 and will aid our efforts to continue  expanding our market share in
the Quad Cities.  In addition,  Quad City Bank & Trust has acquired the northern
segment of our Brady Street  facility in Davenport,  which had  previously  been
owned by the developer of the property. Currently,  renovations are under way to
develop  this  additional   space  for  occupation  by  some  of  the  Company's
operational and administrative functions. Completion of this project is expected
late in 2003.

Our board of  directors  declared a cash  dividend of $.06 per share  payable on
January 5, 2004, to  stockholders  of record on December 15, 2003.  Also, we are
pleased to report that recently our stock has traded in the mid 20's.

We still  believe the  longer-term  trend is for  interest  rates to move up and
dollars to flow into stocks.  Chairman  Greenspan  and the Federal  Reserve Open
Market Committee did not move rates this past quarter.  Corporate profits appear
to be  recovering,  and we hope that we  experience  that impact in our markets.
Productivity  continues  to improve and has  resulted in some degree of job loss
even as the economy gains momentum.

As we look to 2004,  it  appears  we will be  presented  with  several  earnings
challenges  as a result of the expected  decrease in gains on  residential  real
estate loans and the reduced volumes at Bancard. In addition, we are making some
large  investments in technology and facilities at our subsidiary  banks.  While
these  investments will negatively impact  short-term  profitability,  we firmly
believe that they will provide long-term benefits for our shareholders.

Thanks for your continued support.

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