Exhibit 99.1

To Our Stockholders,

We are excited to announce our further expansion into Wisconsin.  As you recall,
we acquired a leasing  operation,  M2 Lease  Funds,  LLC, in Milwaukee in August
2005. In March of 2006,  we hired five  experienced  bankers who had  previously
worked at a large Milwaukee banking organization.  The Milwaukee market is a $40
billion deposit market,  which is over twice the market size of the Quad Cities,
Cedar Rapids, and Rockford markets combined.

The Milwaukee market consists of many owner-managed  businesses and should allow
us to expand through our commercial,  relationship-based  model. Initially, this
operation is a division of Rockford Bank & Trust.  Our five new banking officers
complement  each other very well,  and we believe they will very rapidly help us
gain market shares both in lending and deposit gathering.

Earnings for the first quarter ended March 31, 2006 were $833 thousand, or basic
and diluted  earnings per share of $0.18.  For the same quarter one year ago, we
reported  earnings of $1.3 million,  or basic and diluted  earnings per share of
$0.29.  Earnings  for the  fourth  quarter of 2005 were $1.3  million,  or basic
earnings per share of $0.28 and diluted earnings per share of $0.27.

For the first  quarter  of 2006,  our  total  assets  increased  by 2%, or $23.5
million,  to $1.07 billion from $1.04 billion at December 31, 2005.  During this
same quarter,  net  loans/leases  increased by 4%, or $29.0  million,  to $776.4
million  from  $747.4  million  at  December  31,  2005.  Non-performing  assets
decreased  to $3.0  million at March 31, 2006 from $3.7  million at December 31,
2005.  Total  deposits  increased by 7% to $747.4 million at March 31, 2006 when
compared to $698.5  million at December 31, 2005.  Stockholders'  equity rose to
$55.5  million at March 31, 2006 as compared  to $54.5  million at December  31,
2005.

Quarter-to-quarter  total revenue increased by $1.2 million,  or 7%, while total
expense increased by $2.0 million,  or 13%. In a comparison of the first quarter
of 2006 to the fourth  quarter of 2005,  a 12%,  or $325  thousand,  increase in
non-interest  income was offset by the  combination of a decline in net interest
income of 3%, or $185  thousand,  an increase in the  provision  for  loan/lease
losses of $203 thousand, or 60%, and an increase in non-interest expenses of 9%,
or $689  thousand.  Salaries  and  employee  benefits  expense  was the  primary
contributor to the increase in non-interest expenses.

The economy's flat yield curve, in combination with strong competitive factors,
continues to stress our net interest margin. In the first quarter of 2006, the
Company's net interest margin narrowed for the third consecutive quarter, and as
a result, net interest income declined $185 thousand, or 3%, from the fourth
quarter of 2005. Although we experienced increases in both the average volumes
and rates of interest-bearing assets, these increases were more than offset by
increases in the average volumes and rates on deposits at the subsidiary banks.
All three of our subsidiary banks are experiencing the stress of aggressive loan
and deposit pricing within their respective markets.

Our  first  two  banks,  Quad  City and  Cedar  Rapids,  reported  asset  levels
approximately  the same as at December  31,  2005.  Earnings at Quad City Bank &
Trust were off  approximately  14% from March 2005, while Cedar Rapids' earnings
were up 65% from a year ago. Quad City's  recognition  of an impairment  loss of
$143 thousand (pretax) on a mortgage-backed  mutual fund investment  contributed
significantly to this year-to-year decrease in earnings.

Our  newest  banking  subsidiary,  Rockford  Bank  &  Trust,  experienced  a net
operating loss of $320 thousand for the first quarter of 2006 compared to a loss
of $271 thousand for the fourth  quarter of 2005.  These results are  consistent
with the Company's expectations for this de novo charter. Rockford Bank & Trust,
which opened January 3, 2005,  reached total assets of $51.8 million,  net loans
of $35.2  million,  and deposits of $32.0 million at March 31, 2006,  which were
improvements  from  December  31,  2005 of 25%,  38% and 25%,  respectively.  In
December  2005,  Rockford  Bank & Trust opened a second  location in a temporary
facility on Guilford Road at Alpine Road in Rockford,  and  construction  of the
permanent facility is underway with completion expected in October 2006.

In August 2005, the Company  acquired M2 Lease Funds,  LLC. Since that time, the
growth and earnings at this  subsidiary  have been consistent with the Company's
expectations.  At March 31,  2006,  M2 Lease  Funds  had  total  assets of $40.0
million and pretax net income of $323  thousand  for the first  quarter of 2006.
President John  Engelbrecht has recently added leasing  officers in eastern Iowa
and Chicago to add additional productive capacity and depth to M2.

Net interest margin, as mentioned, continues to be a big challenge for financial
institutions. Nationally, NIM has contracted approximately 30 basis points since
June 2004.  We will focus on larger loan  portfolios  for our officers to offset
the compressed  margin. In addition,  we will look to other business segments to
grow  earnings,  such as trust and leasing.  Our trust  departments  in the Quad
Cities and in Cedar Rapids continue to increase market share and  profitability.
We are fortunate to have one of the largest and most efficient trust departments
in eastern Iowa and western Illinois.

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The Federal Reserve continues to fight inflation,  as it increased rates for the
15th  consecutive  time.  The Fed's new chair,  Dr. Ben  Bernanke,  offered  the
following observations:

1. The Fed  mandate  remains  the dual  goals of  price  stability  and  maximum
sustainable  employment.  2. Congress needs to decide on an appropriate size for
government,  then deal with revenues and spending. 3. We need more commitment to
all levels of  education--school,  on-the-job,  retraining,  etc. 4. Housing may
moderate,  but will not  sustain  significant  decline.  5.  Economic  expansion
remains and, on average, has helped all Americans.

Many market  participants  continue to expect the Federal  Reserve to extend its
15-meetings-in-a-row  stair-step  upward rate move.  Though  economic  growth is
expected to moderate as 2006 progresses,  early-2006 reports show solid economic
progress and a number of economists are slowly raising full-year estimates.  Fed
comments have some  investors  increasingly  anticipating a 5% Fed Funds rate by
summer,  with perhaps more to come. One other thought:  though loan and mortgage
rates  have   increased,   money  market  funds  and   shorter-term   bonds  pay
significantly  higher  yields than just a few quarters  ago--great  news for the
more conservative investors among us.

We appreciate your patience as we continue to make  investments  that we believe
are in your best long-term  interest.  Compressed  net interest  margins and the
expansions  into  Rockford  and  Milwaukee  will  continue to create  short-term
earnings challenges.  We will structure our businesses to maximize profitability
when the  yield  curve  returns  to a normal  shape,  and we grow into our added
overhead.

Thank you for your continued loyalty and support.





Special Note Concerning Forward-Looking  Statements. This document contains, and
future  oral and  written  statements  of the  Company  and its  management  may
contain, forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 with respect to the financial  condition,  results
of  operations,  plans,  objectives,  future  performance  and  business  of the
Company.   Forward-looking   statements,   which  may  be  based  upon  beliefs,
expectations  and  assumptions  of the Company's  management  and on information
currently  available to  management,  are generally  identifiable  by the use of
words such as "believe," "expect," "anticipate," "predict," "suggest," "appear,"
"plan,"  "intend,"  "estimate,"  "annualize,"  "may," "will," "would,"  "could,"
"should" or other  similar  expressions.  Additionally,  all  statements in this
document,  including forward-looking statements,  speak only as of the date they
are made,  and the Company  undertakes  no obligation to update any statement in
light of new information or future events.

A number of  factors,  many of which are  beyond the  ability of the  Company to
control or predict,  could cause actual results to differ  materially from those
in its  forward-looking  statements.  These factors include,  among others,  the
following: (i) the strength of the local and national economy; (ii) the economic
impact of any future  terrorist  threats and  attacks,  and the  response of the
United Sates to any such threats and attacks; (iii) changes in state and federal
laws,  regulations and governmental  policies  concerning the Company's  general
business;  (iv) changes in interest rates and prepayment  rates of the Company's
assets;  (v)  increased  competition  in the financial  services  sector and the
inability to attract new  customers;  (vi) changes in technology and the ability
to develop and maintain secure and reliable electronic  systems;  (vii) the loss
of key  executives  or  employees;  (viii)  changes in consumer  spending;  (ix)
unexpected results of our strategy to establish denovo banks in new markets; (x)
unexpected  outcomes of existing or new  litigation  involving the Company;  and
(xi) changes in accounting policies and practices. These risks and uncertainties
should be considered in evaluating forward-looking statements and undue reliance
should not be placed on such statements.  Additional  information concerning the
Company and its business,  including  additional  factors that could  materially
affect the Company's  financial  results,  is included in the Company's  filings
with the Securities and Exchange Commission.



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