Note 5 - Junior Subordinated Debentures

6 Months Ended

Jun. 30, 2013

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE 5 – JUNIOR SUBORDINATED DEBENTURES

As part of the acquisition of Community National, the Company assumed two junior subordinated debentures detailed as follows:

The first debenture assumed was issued in September 2004 in the amount of $3,093,000, and provides that interest is payable quarterly with the interest rate adjusted to equal three-month LIBOR plus 2.17% (2.45% at June 30, 2013). Principal is due September 20, 2034, but is callable at any time. The second debenture assumed was issued in March 2007 in the amount of $3,609,000, and provides that interest is payable quarterly with the interest rate adjusted to equal three-month LIBOR plus 1.75% (2.03% at June 30, 2013). Principal is due March 15, 2037, but is callable at any time.

Junior subordinated debentures are summarized as of June 30, 2013 and December 31, 2012 as follows:

	2013			2012
Note Payable to QCR Holdings Capital Trust II	$	12,372,000		$	12,372,000
Note Payable to QCR Holdings Capital Trust III		8,248,000			8,248,000
Note Payable to QCR Holdings Capital Trust IV		5,155,000			5,155,000
Note Payable to QCR Holdings Capital Trust V		10,310,000			10,310,000
Note Payable to Community National Trust II		3,093,000			-
Note Payable to Community National Trust III		3,609,000			-
Market Value Discount per ASC 805		(2,576,825	)		-
	$	40,210,175		$	36,085,000

The fair value of Community National’s junior subordinated debentures totaled $4,125,175 at the acquisition date which resulted in a discount of $2,576,825. The discount will be accreted as interest expense on a level yield basis over the expected remaining term of the junior subordinated debentures.

A schedule of the Company’s non-consolidated subsidiaries formed for the issuance of trust preferred securities including the amounts outstanding as of June 30, 2013 and December 31, 2012, is as follows:

Name	Date Issued	Amount Issued		Interest Rate	Interest Rate as of 6/30/2013			Interest Rate as of 12/31/2012
QCR Holdings Statutory Trust II	February 2004	$	12,372,000	2.85% over 3-month LIBOR		3.13	%		3.21	%
QCR Holdings Statutory Trust III	February 2004		8,248,000	2.85% over 3-month LIBOR		3.13	%		3.21	%
QCR Holdings Statutory Trust IV	May 2005		5,155,000	1.80% over 3-month LIBOR		2.08	%		2.14	%
QCR Holdings Statutory Trust V	February 2006		10,310,000	1.55% over 3-month LIBOR		1.83	%		1.89	%
Community National Statutory Trust II	September 2004		3,093,000	2.17% over 3-month LIBOR		2.45	%		N/A
Community National Statutory Trust III	March 2007		3,609,000	1.75% over 3-month LIBOR		2.03	%		N/A
		$	42,787,000	Weighted Average Rate		2.55	%		2.68	%

Securities issued by all of the trusts listed above mature 30 years from the date of issuance, but all are currently callable at par at any time.