10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2014

[    ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                to________

Commission file number 0-22208

QCR HOLDINGS, INC.

(Exact name of Registrant as specified in its charter)

Delaware	42-1397595
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

3551 7^th Street, Moline, Illinois 61265

(Address of principal executive offices, including zip code)

(309) 743-7761

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes      [ X ]          No [    ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes      [ X ]          No [    ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):               

Large accelerated filer  [    ]    Accelerated filer  [    ]    Non-accelerated filer  [    ]    Smaller reporting company  [ X ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes      [    ]           No [ X ]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date: As of August 1, 2014, the Registrant had outstanding 7,928,643 shares of common stock, $1.00 par value per share.

QCR HOLDINGS, INC. AND SUBSIDIARIES

INDEX

			Page Number(s)
Part I	FINANCIAL INFORMATION
	Item 1	Consolidated Financial Statements (Unaudited)
		Consolidated Balance Sheets	2
		As of June 30, 2014 and December 31, 2013
		Consolidated Statements of Income	3
		For the Three Months Ended June 30, 2014 and 2013
		Consolidated Statements of Income	4
		For the Six Months Ended June 30, 2014 and 2013
		Consolidated Statements of Comprehensive Income (Loss)	5
		For the Three and Six Months Ended June 30, 2014 and 2013
		Consolidated Statements of Changes in Stockholders' Equity	6
		For the Six Months Ended June 30, 2014 and 2013
		Consolidated Statements of Cash Flows	7-8
		For the Six Months Ended June 30, 2014 and 2013
		Notes to the Consolidated Financial Statements	9-31
	Item 2	Management's Discussion and Analysis of Financial Condition and	32-61
		Results of Operations
	Item 3	Quantitative and Qualitative Disclosures About Market Risk	62-64
	Item 4	Controls and Procedures	65
Part II	OTHER INFORMATION
	Item 1	Legal Proceedings	66
	Item 1A	Risk Factors	66
	Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	66
	Item 3	Defaults upon Senior Securities	66
	Item 4	Mine Safety Disclosures	66
	Item 5	Other Information	66
	Item 6	Exhibits	67
Signatures			68

1

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of June 30, 2014 and December 31, 2013

	June 30,			December 31,
	2014			2013
ASSETS
Cash and due from banks	$	56,292,577		$	41,950,790
Federal funds sold		20,490,000			39,435,000
Interest-bearing deposits at financial institutions		36,786,049			33,044,917
Securities held to maturity, at amortized cost		166,787,372			145,451,895
Securities available for sale, at fair value		515,335,097			551,758,458
Total securities		682,122,469			697,210,353
Loans receivable held for sale		1,302,175			1,358,290
Loans/leases receivable held for investment		1,548,065,574			1,458,921,268
Gross loans/leases receivable		1,549,367,749			1,460,279,558
Less allowance for estimated losses on loans/leases		(23,067,024	)		(21,448,048	)
Net loans/leases receivable		1,526,300,725			1,438,831,510
Premises and equipment, net		36,313,537			36,755,364
Goodwill		3,222,688			3,222,688
Core deposit intangible		1,770,677			1,870,433
Bank-owned life insurance		52,844,877			52,002,041
Restricted investment securities		16,347,125			17,027,625
Other real estate owned, net		10,951,214			9,729,053
Other assets		21,397,545			23,873,150
Total assets	$	2,464,839,483		$	2,394,952,924
LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES
Deposits:
Noninterest-bearing	$	531,062,583		$	542,566,087
Interest-bearing		1,146,305,692			1,104,425,156
Total deposits		1,677,368,275			1,646,991,243
Short-term borrowings		204,321,854			149,292,967
Federal Home Loan Bank advances		222,900,000			231,350,000
Other borrowings		151,452,927			142,448,362
Junior subordinated debentures		40,356,154			40,289,830
Other liabilities		33,797,744			37,003,742
Total liabilities		2,330,196,954			2,247,376,144
STOCKHOLDERS' EQUITY
Preferred stock, $1 par value; shares authorized 250,000		-			29,867
June 2014 - 0 shares issued and outstanding
December 2013 - 29,867 shares issued and outstanding
Common stock, $1 par value; shares authorized 20,000,000		8,049,889			8,005,708
June 2014 - 8,049,889 shares issued and 7,928,643 outstanding
December 2013 - 8,005,708 shares issued and 7,884,462 outstanding
Additional paid-in capital		60,999,044			90,154,528
Retained earnings		71,137,294			64,637,173
Accumulated other comprehensive loss		(3,937,188	)		(13,643,986	)
Less treasury stock, June 2014 and December 2013 - 121,246 common shares, at cost		(1,606,510	)		(1,606,510	)
Total stockholders' equity	134,642,529				147,576,780
Total liabilities and stockholders' equity	$	2,464,839,483		$	2,394,952,924

See Notes to Consolidated Financial Statements (Unaudited)

2

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended June 30,

	2014			2013
Interest and dividend income:
Loans/leases, including fees	$	16,868,806		$	16,369,605
Securities:
Taxable		2,573,649			2,629,832
Nontaxable		1,448,415			944,100
Interest-bearing deposits at financial institutions		71,243			61,724
Restricted investment securities		139,570			131,151
Federal funds sold		3,693			2,989
Total interest and dividend income		21,105,376			20,139,401
Interest expense:
Deposits		1,101,615			1,176,855
Short-term borrowings		60,811			103,435
Federal Home Loan Bank advances		1,495,980			1,726,622
Other borrowings		1,174,594			1,162,893
Junior subordinated debentures		307,033			261,544
Total interest expense		4,140,033			4,431,349
Net interest income		16,965,343			15,708,052
Provision for loan/lease losses		1,001,879			1,520,137
Net interest income after provision for loan/lease losses		15,963,464			14,187,915
Noninterest income:
Trust department fees		1,444,414			1,197,181
Investment advisory and management fees		710,858			695,094
Deposit service fees		1,091,923			1,054,223
Gains on sales of residential real estate loans		132,971			246,621
Gains on sales government guaranteed portions of loans		508,168			765,738
Securities gains		571			16,460
Earnings on bank-owned life insurance		388,672			423,883
Bargain purchase gain on Community National Acquisition		-			1,841,385
Losses on other real estate owned, net		(126,657	)		(83,339	)
Other	1,193,293				791,510
Total noninterest income		5,344,213			6,948,756
Noninterest expense:
Salaries and employee benefits		9,922,191			9,186,233
Occupancy and equipment expense		1,838,971			1,586,841
Professional and data processing fees		1,403,915			1,438,753
FDIC and other insurance		695,365			627,390
Loan/lease expense		377,492			251,868
Advertising and marketing		501,548			412,041
Postage and telephone		258,121			257,611
Stationery and supplies		145,635			150,718
Bank service charges		324,397			284,345
Acquisition and data conversion costs		-			432,326
Other		638,894			606,223
Total noninterest expense		16,106,529			15,234,349
Net income before income taxes		5,201,148			5,902,322
Federal and state income tax expense		1,193,312			1,857,091
Net income	$	4,007,836		$	4,045,231
Less: Preferred stock dividends		373,869			810,838
Net income attributable to QCR Holdings, Inc. common stockholders	$	3,633,967		$	3,234,393
Earnings per common share attributable to QCR Holdings, Inc. common shareholders
Basic	$	0.46		$	0.60
Diluted	$	0.45		$	0.59
Weighted average common shares outstanding		7,924,624			5,393,062
Weighted average common and common equivalent shares outstanding		8,050,514			5,497,275
Cash dividends declared per common share	$	0.04		$	0.04

See Notes to Consolidated Financial Statements (Unaudited)

3

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Six Months Ended June 30,

	2014			2013
Interest and dividend income:
Loans/leases, including fees	$	33,644,396		$	31,458,432
Securities:
Taxable		5,156,443			5,090,281
Nontaxable		2,902,471			1,746,573
Interest-bearing deposits at financial institutions		161,770			121,478
Restricted investment securities		268,495			256,256
Federal funds sold		7,012			3,863
Total interest and dividend income		42,140,587			38,676,883
Interest expense:
Deposits		2,203,208			2,293,646
Short-term borrowings		112,507			167,702
Federal Home Loan Bank advances		3,051,956			3,459,434
Other borrowings		2,346,125			2,353,648
Junior subordinated debentures		612,207			503,084
Total interest expense		8,326,003			8,777,514
Net interest income		33,814,584			29,899,369
Provision for loan/lease losses		2,096,041			2,577,919
Net interest income after provision for loan/lease losses		31,718,543			27,321,450
Noninterest income:
Trust department fees		2,944,756			2,236,851
Investment advisory and management fees		1,359,850			1,304,435
Deposit service fees		2,137,808			1,962,046
Gains on sales of residential real estate loans		196,458			537,772
Gains on sales government guaranteed portions of loans		702,187			1,610,962
Securities gains		21,196			16,460
Earnings on bank-owned life insurance		842,836			862,570
Bargain purchase gain on Community National Acquisition		-			1,841,385
Losses on other real estate owned, net		(144,705	)		(529,969	)
Other		2,030,668			2,310,273
Total noninterest income		10,091,054			12,152,785
Noninterest expense:
Salaries and employee benefits		19,940,109			17,928,916
Occupancy and equipment expense		3,733,259			3,015,711
Professional and data processing fees		2,988,321			2,578,814
FDIC and other insurance		1,410,115			1,183,301
Loan/lease expense		723,128			496,959
Advertising and marketing		839,135			676,609
Postage and telephone		548,796			476,302
Stationery and supplies		297,386			261,388
Bank service charges		622,429			559,840
Acquisition and data conversion costs		-			788,904
Other		1,144,271			1,226,105
Total noninterest expense		32,246,949			29,192,849
Net income before income taxes		9,562,648			10,281,386
Federal and state income tax expense		1,665,597			2,971,011
Net income	$	7,897,051		$	7,310,375
Less: Preferred stock dividends		1,081,877			1,621,675
Net income attributable to QCR Holdings, Inc. common stockholders	$	6,815,174		$	5,688,700
Earnings per common share attributable to QCR Holdings, Inc. common shareholders
Basic	$	0.86		$	1.10
Diluted	$	0.85		$	1.08
Weighted average common shares outstanding		7,912,830			5,160,327
Weighted average common and common equivalent shares outstanding		8,040,279			5,265,809
Cash dividends declared per common share	$	0.04		$	0.04

See Notes to Consolidated Financial Statements (Unaudited)

4

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

Three and Six Months Ended June 30, 2014 and 2013

	Three Months Ended June 30,
	2014			2013
Net income	$	4,007,836		$	4,045,231
Other comprehensive income (loss):
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period before tax		7,656,064			(21,238,019	)
Less reclassification adjustment for gains included in net income before tax		571			16,460
		7,655,493			(21,254,479	)
Unrealized losses on derivative instruments		(251,149	)		-
Other comprehensive income (loss), before tax		7,404,344			(21,254,479	)
Tax expense (benefit)		2,928,330			(8,162,990	)
Other comprehensive income (loss), net of tax		4,476,014			(13,091,489	)
Comprehensive income (loss) attributable to QCR Holdings, Inc.	$	8,483,850		$	(9,046,258	)

	Six Months Ended June 30,
	2014			2013
Net income	$	7,897,051		$	7,310,375
Other comprehensive income (loss):
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period before tax		16,146,238			(22,594,571	)
Less reclassification adjustment for gains included in net income before tax		21,196			16,460
		16,125,042			(22,611,031	)
Unrealized losses on derivative instruments		(251,149	)		-
Other comprehensive income (loss), before tax		15,873,893			(22,611,031	)
Tax expense (benefit)		6,167,095			(8,683,184	)
Other comprehensive income (loss), net of tax		9,706,798			(13,927,847	)
Comprehensive income (loss) attributable to QCR Holdings, Inc.	$	17,603,849		$	(6,617,472	)

See Notes to Consolidated Financial Statements (Unaudited)

5

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)

Six Months Ended June 30, 2014 and 2013

													Accumulated
							Additional						Other
	Preferred			Common			Paid-In			Retained			Comprehensive			Treasury
	Stock			Stock			Capital			Earnings			Income (Loss)			Stock			Total
Balance December 31, 2013	$	29,867		$	8,005,708		$	90,154,528		$	64,637,173		$	(13,643,986	)	$	(1,606,510	)	$	147,576,780
Net income		-			-			-			3,889,215			-			-			3,889,215
Other comprehensive income, net of tax		-			-			-			-			5,230,784			-			5,230,784
Preferred cash dividends declared		-			-			-			(708,008	)		-			-			(708,008	)
Redemption of 15,000 shares of Series F Noncumulative Perpetual Preferred Stock		(15,000	)		-			(14,985,000	)		-			-			-			(15,000,000	)
Proceeds from issuance of 6,189 shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan		-			6,189			78,256			-			-			-			84,445
Proceeds from issuance of 9,814 shares of common stock as a result of stock options exercised		-			9,814			85,582			-			-			-			95,396
Stock compensation expense		-			-			347,752												347,752
Tax benefit of nonqualified stock options exercised		-			-			18,647			-			-			-			18,647
Restricted stock awards		-			27,197			(27,197	)		-			-			-			-
Exchange of 10,300 shares of common stock in connection with restricted stock vested, net		-			(10,300	)		(167,684	)		-			-			-			(177,984	)
Balance March 31, 2014	$	14,867		$	8,038,608		$	75,504,884		$	67,818,380		$	(8,413,202	)	$	(1,606,510	)	$	141,357,027
Net income		-			-			-			4,007,836			-			-			4,007,836
Other comprehensive income, net of tax		-			-			-			-			4,476,014			-			4,476,014
Common cash dividends declared, $0.04 per share		-			-			-			(315,053	)		-			-			(315,053	)
Preferred cash dividends declared		-			-			-			(373,869	)		-			-			(373,869	)
Redemption of 14,867 shares of Series F Noncumulative Perpetual Preferred Stock		(14,867	)		-			(14,809,055	)		-			-			-			(14,823,922	)
Proceeds from issuance of 8,361 shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan		-			8,361			119,797			-			-			-			128,158
Proceeds from issuance of 630 shares of common stock as a result of stock options exercised		-			630			5,159			-			-			-			5,789
Stock compensation expense		-			-			179,265												179,265
Tax benefit of nonqualified stock options exercised		-			-			1,284			-			-			-			1,284
Restricted stock awards		-			2,290			(2,290	)		-			-			-			-
Balance June 30, 2014	$	-		$	8,049,889		$	60,999,044		$	71,137,294		$	(3,937,188	)	$	(1,606,510	)	$	134,642,529

												Accumulated
						Additional						Other
	Preferred		Common			Paid-In			Retained			Comprehensive			Treasury
	Stock		Stock			Capital			Earnings			Income (Loss)			Stock			Total
Balance December 31, 2012	$	54,867	$	5,039,448		$	78,912,791		$	53,326,542		$	4,706,683		$	(1,606,510	)	$	140,433,821
Net income		-		-			-			3,265,144			-			-			3,265,144
Other comprehensive loss, net of tax		-		-			-			-			(836,358	)		-			(836,358	)
Preferred cash dividends declared		-		-			-			(810,837	)		-			-			(810,837	)
Proceeds from issuance of 5,884 shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan		-		5,884			63,487			-			-			-			69,371
Proceeds from issuance of 19,278 shares of common stock as a result of stock options exercised		-		19,278			153,550			-			-			-			172,828
Exchange of 7,048 shares of common stock in connection with stock options exercised		-		(7,048	)		(111,628	)		-			-			-			(118,676	)
Stock compensation expense		-		-			293,798												293,798
Tax benefit of nonqualified stock options exercised		-		-			35,251			-			-			-			35,251
Restricted stock awards		-		16,798			(16,798	)		-			-			-			-
Exchange of 16,798 shares of common stock in connection with restricted stock vested, net		-		(16,798	)		(289,113	)		-			-			-			(305,911	)
Balance March 31, 2013	$	54,867	$	5,057,562		$	79,041,338		$	55,780,849		$	3,870,325		$	(1,606,510	)	$	142,198,431
Net income		-		-			-			4,045,231			-			-			4,045,231
Other comprehensive loss, net of tax		-		-			-			-			(13,091,489	)		-			(13,091,489	)
Common cash dividends declared, $0.04 per share		-		-			-			(228,971	)		-			-			(228,971	)
Preferred cash dividends declared		-		-			-			(810,838	)		-			-			(810,838	)
Proceeds from issuance of 834,715 shares of common stock as a result of the acquisition of Community National Bancorporation, net		-		834,715			12,181,894			-			-			-			13,016,609
Proceeds from issuance of 9,560 shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan		-		9,560			104,221			-			-			-			113,781
Proceeds from issuance of 3,769 shares of common stock as a result of stock options exercised		-		3,769			33,070			-			-			-			36,839
Stock compensation expense		-		-			162,123												162,123
Tax benefit of nonqualified stock options exercised		-		-			4,197			-			-			-			4,197
Restricted stock awards		-		12,707			(12,707	)		-			-			-			-
Balance June 30, 2013	$	54,867	$	5,918,313		$	91,514,136		$	58,786,271		$	(9,221,164	)	$	(1,606,510	)	$	145,445,913

See Notes to Consolidated Financial Statements (Unaudited)

6

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Six Months Ended June 30, 2014 and 2013

	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	7,897,051		$	7,310,375
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		1,390,389			1,280,550
Provision for loan/lease losses		2,096,041			2,577,919
Stock-based compensation expense		527,017			455,921
Deferred compensation expense accrued		684,984			419,956
Losses on other real estate owned, net		144,705			529,969
Amortization of premiums on securities, net		1,002,893			1,972,391
Securities gains		(21,196	)		(16,460	)
Loans originated for sale		(22,215,215	)		(52,272,708	)
Proceeds on sales of loans		23,169,975			56,915,600
Gains on sales of residential real estate loans		(196,458	)		(537,772	)
Gains on sales of government guaranteed portions of loans		(702,187	)		(1,610,962	)
Amortization of core deposit intangible		99,756			-
Accretion of acquisition fair value adjustments, net		(304,876	)		-
Gain on the sale of premises and equipment		(42,554	)		-
Increase in cash value of bank-owned life insurance		(842,836	)		(862,570	)
Bargain purchase gain on Community National acquisition		-			(1,841,385	)
Decrease (increase) in other assets		(1,870,989	)		6,556,417
Decrease in other liabilities		(3,791,845	)		(1,217,181	)
Net cash provided by operating activities	$	7,024,655		$	19,660,060
CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease in federal funds sold		18,945,000			22,229,000
Net increase in interest-bearing deposits at financial institutions		(3,741,132	)		(10,189,746	)
Proceeds from sales of other real estate owned		771,902			303,766
Purchase of derivative instruments		(2,071,650	)		-
Activity in securities portfolio:
Purchases		(36,089,884	)		(238,534,747	)
Calls, maturities and redemptions		27,756,298			124,663,560
Paydowns		12,563,485			27,762,742
Sales		25,877,578			6,167,531
Activity in restricted investment securities:
Purchases		(839,500	)		(4,818,750	)
Redemptions		1,520,000			4,950,000
Net increase in loans/leases originated and held for investment		(91,280,287	)		(51,708,379	)
Net cash received from the sale of premises and equipment		291,006			-
Purchase of premises and equipment		(1,197,014	)		(950,802	)
Net cash received from Community National acquisition		-			3,025,073
Net cash used in investing activities	$	(47,494,198	)	$	(117,100,752	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposit accounts		30,392,132			87,620,739
Net increase (decrease) in short-term borrowings		55,028,887			(13,896,757	)
Activity in Federal Home Loan Bank advances:
Advances		15,000,000			119,000,000
Calls and maturities		(23,450,000	)		(111,400,500	)
Proceeds from term debt		10,000,000			10,000,000
Principal payments on term debt		(1,000,000	)		-
Payment on 364-day revolving note		-			(5,600,000	)
Repayment of Community National's other borrowings at acquisition		-			(3,950,000	)
Payment of cash dividends on common and preferred stock		(1,649,555	)		(1,813,624	)
Redemption of 15,000 shares of Series F Noncumulative Perpetual Preferred Stock, net		(15,000,000	)		-
Redemption of 14,867 shares of Series F Noncumulative Perpetual Preferred Stock, net		(14,823,922	)		-
Proceeds from issuance of common stock, net		313,788			229,278
Net cash provided by financing activities	$	54,811,330		$	80,189,136
Net increase (decrease) in cash and due from banks		14,341,787			(17,251,556	)
Cash and due from banks, beginning		41,950,790			61,568,446
Cash and due from banks, ending	$	56,292,577		$	44,316,890

(Continued)

7

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - continued

Six Months Ended June 30, 2014 and 2013

	2014			2013
Supplemental disclosure of cash flow information, cash payments for:
Interest	$	8,376,272		$	8,897,240
Income/franchise taxes	$	3,057,500		$	1,031,120
Supplemental schedule of noncash investing activities:
Change in accumulated other comprehensive income (loss), unrealized gains (losses) on securities available for sale and derivative instruments, net	$	9,706,798		$	(13,927,847	)
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised	$	(177,984	)	$	(424,587	)
Transfers of loans to other real estate owned	$	2,138,768		$	187,500
Supplemental disclosure of cash flow information for Community National Acquisition:
Fair value of assets acquired:
Cash and due from banks *	$	-		$	9,286,757
Federal funds sold		-			12,335,000
Interest-bearing deposits at financial institutions		-			2,024,539
Securities available for sale		-			45,853,826
Loans/leases receivable held for investment, net		-			195,658,486
Premises and equipment, net		-			8,132,021
Core deposit intangible		-			3,440,076
Bank-owned life insurance		-			4,595,529
Restricted investment securities		-			1,259,375
Other real estate owned		-			550,326
Other assets		-			5,178,583
Total assets acquired	$	-		$	288,314,518
Fair value of liabilities assumed:
Deposits	$	-		$	255,045,071
Other borrowings		-			3,950,000
Junior subordinated debentures		-			4,125,175
Other liabilities		-			3,911,053
Total liabilities assumed	$	-		$	267,031,299
Net assets acquired	$	-		$	21,283,219
Consideration paid:
Cash paid *	$	-		$	6,261,684
Issuance of 834,715 shares of common stock		-			13,180,150
Total consideration paid	$	-		$	19,441,834
Bargain purchase gain	$	-		$	1,841,385

* Net cash received at closing totaled $3,025,073

See Notes to Consolidated Financial Statements (Unaudited)

8

Part I

Item 1

QCR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 30, 2014

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, 2013, included in QCR Holdings, Inc.’s (the “Company”) Form 10-K filed with the Securities and Exchange Commission on March 10, 2014. 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 U.S. generally accepted accounting principles 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 June 30, 2014, are not necessarily indicative of the results expected for the year ending December 31, 2014.

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries which include three commercial banks: Quad City Bank & Trust Company (“QCBT”), Cedar Rapids Bank & Trust Company (“CRBT”), and Rockford Bank & Trust Company (“RB&T”). On May 13, 2013, the Company acquired Community National Bancorporation (“Community National”) and its banking subsidiary Community National Bank (“CNB”). The Company operated CNB as a separate banking charter from the acquisition date until October 26, 2013, when CNB’s charter was merged with and into CRBT. CNB’s merged branch offices operate as a division of CRBT under the name of “Community Bank & Trust”. QCBT, CRBT, and RB&T are all state-chartered commercial banks. The Company also engages in direct financing lease contracts through m2 Lease Funds, LLC (“m2 Lease Funds”), a wholly-owned subsidiary of QCBT. All material intercompany transactions and balances have been eliminated in consolidation.

Recent accounting developments: In January 2014, FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The objective of ASU 2014-04 is to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU 2014-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Management is in the process of evaluating the impact of ASU 2014-04 on the Company’s consolidated financial statements.

In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective on January 1, 2017 and is not expected to have a significant impact on the Company’s financial statements.

9

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

In June 2014, FASB issued ASU 2014-11, Transfers and Servicing. ASU 2014-11 requires that repurchase-to-maturity transactions be accounted for as secured borrowings, consistent with the accounting for other repurchase agreements. In addition, ASU 2014-11 requires separate accounting for repurchase financings, which entail the transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty. The standard requires entities to disclose certain information about transfers accounted for as sales in transactions that are economically similar to repurchase agreements. In addition, ASU 2014-11 requires disclosures related to collateral and remaining tenor and of the potential risks associated with repurchase agreements, securities lending transactions and repurchase-to-maturity transactions. ASU 2014-11 is effective on January 1, 2015 and is not expected to have a significant impact on the Company’s consolidated financial statements.

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

10

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

NOTE 2 – INVESTMENT SECURITIES

The amortized cost and fair value of investment securities as of June 30, 2014 and December 31, 2013 are summarized as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		(Losses)			Value
June 30, 2014
Securities held to maturity:
Municipal securities	$	165,737,372	$	1,492,583	$	(2,609,628	)	$	164,620,327
Other securities		1,050,000		-		-			1,050,000
	$	166,787,372	$	1,492,583	$	(2,609,628	)	$	165,670,327
Securities available for sale:
U.S. govt. sponsored agency securities	$	334,083,927	$	109,470	$	(8,572,941	)	$	325,620,456
Residential mortgage-backed and related securities		152,965,071		2,200,301		(1,270,158	)		153,895,214
Municipal securities		32,871,334		1,156,141		(170,004	)		33,857,471
Other securities		1,401,827		560,129		-			1,961,956
	$	521,322,159	$	4,026,041	$	(10,013,103	)	$	515,335,097
December 31, 2013:
Securities held to maturity:
Municipal securities	$	144,401,895	$	299,789	$	(7,111,579	)	$	137,590,105
Other securities		1,050,000		-		-			1,050,000
	$	145,451,895	$	299,789	$	(7,111,579	)	$	138,640,105
Securities available for sale:
U.S. govt. sponsored agency securities	$	376,574,132	$	41,696	$	(20,142,841	)	$	356,472,987
Residential mortgage-backed and related securities		160,110,199		1,153,409		(3,834,157	)		157,429,451
Municipal securities		35,813,866		923,315		(778,324	)		35,958,857
Other securities		1,372,365		524,798		-			1,897,163
	$	573,870,562	$	2,643,218	$	(24,755,322	)	$	551,758,458

The Company’s held to maturity municipal securities consist largely of private issues of municipal debt. The municipalities are located within the Midwest with a portion in or adjacent to the communities of QCBT and CRBT. 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 commercial mortgage-backed securities or pooled trust preferred securities.

11

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

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 June 30, 2014 and December 31, 2013, are summarized as follows:

	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
June 30, 2014:
Securities held to maturity:
Municipal securities	$	37,351,435	$	(982,726	)	$	47,726,709	$	(1,626,902	)	$	85,078,144	$	(2,609,628	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	284,171,721	$	(8,502,103	)	$	13,725,024	$	(70,838	)	$	297,896,745	$	(8,572,941	)
Residential mortgage-backed and related securities		8,124,317		(95,270	)		55,800,561		(1,174,888	)		63,924,878		(1,270,158	)
Municipal securities		8,765,260		(131,548	)		2,184,122		(38,456	)		10,949,382		(170,004	)
	$	301,061,298	$	(8,728,921	)	$	71,709,707	$	(1,284,182	)	$	372,771,005	$	(10,013,103	)
December 31, 2013:
Securities held to maturity:
Municipal securities	$	101,983,602	$	(6,711,240	)	$	2,697,375	$	(400,339	)	$	104,680,977	$	(7,111,579	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	333,194,820	$	(19,141,077	)	$	10,978,390	$	(1,001,764	)	$	344,173,210	$	(20,142,841	)
Residential mortgage-backed and related securities		94,723,092		(2,947,770	)		14,117,719		(886,387	)		108,840,811		(3,834,157	)
Municipal securities		13,890,692		(724,939	)		985,687		(53,385	)		14,876,379		(778,324	)
	$	441,808,604	$	(22,813,786	)	$	26,081,796	$	(1,941,536	)	$	467,890,400	$	(24,755,322	)

At June 30, 2014, the investment portfolio included 529 securities. Of this number, 259 securities had current unrealized losses with aggregate depreciation of less than 4% from the total amortized cost basis. Of these, 98 securities had an unrealized loss for twelve months or more. All of the debt securities in unrealized loss positions are considered acceptable credit risks. Based upon an evaluation of the available evidence, including the recent changes in market rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these debt securities are temporary. In addition, the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these debt securities before their anticipated recovery. At June 30, 2014 and December 31, 2013, equity securities represented less than 1% of the total portfolio.

The Company did not recognize other-than-temporary impairment on any debt or equity securities for the three and six months ended June 30, 2014 and 2013.

12

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

All sales of securities for the three and six months ended June 30, 2014 and 2013, respectively, were from securities identified as available for sale. Information on proceeds received, as well as pre-tax gross gains from sales on those securities is as follows:

	Three Months Ended				Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
Proceeds from sales of securities	$	18,856,953	$	6,167,531	$	25,877,578	$	6,167,531
Pre-tax gross gains from sales of securities		571		16,460		21,196		16,460

The amortized cost and fair value of securities as of June 30, 2014 by contractual maturity are shown below. Expected maturities of residential mortgage-backed and related securities may differ from contractual maturities because the residential mortgages underlying the residential mortgage-backed and related securities may be called or prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following table. “Other securities” available for sale are excluded from the maturity categories as there is no fixed maturity date for those securities.

	Amortized Cost		Fair Value
Securities held to maturity:
Due in one year or less	$	2,927,386	$	2,929,942
Due after one year through five years		10,861,031		10,874,917
Due after five years		152,998,955		151,865,468
	$	166,787,372	$	165,670,327
Securities available for sale:
Due in one year or less	$	4,485,092	$	4,498,204
Due after one year through five years		48,898,104		48,717,600
Due after five years		313,572,065		306,262,123
	$	366,955,261	$	359,477,927
Residential mortgage-backed and related securities		152,965,071		153,895,214
Other securities		1,401,827		1,961,956
	$	521,322,159	$	515,335,097

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

	Amortized Cost		Fair Value
Securities held to maturity:
Municipal securities	$	102,919,232	$	102,260,651
Securities available for sale:
U.S. govt. sponsored agency securities		271,663,942		264,421,214
Municipal securities		20,829,274		21,268,094
	$	292,493,216	$	285,689,308

13

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

NOTE 3 – LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of June 30, 2014 and December 31, 2013 is presented as follows:

	As of June 30,			As of December 31,
	2014			2013
Commercial and industrial loans	$	480,494,321		$	431,688,129
Commercial real estate loans
Owner-occupied commercial real estate		247,596,151			261,215,912
Commercial construction, land development, and other land		58,042,089			57,844,902
Other non owner-occupied commercial real estate		377,737,501			352,692,115
		683,375,741			671,752,929
Direct financing leases *		155,004,018			128,901,442
Residential real estate loans **		153,199,719			147,356,323
Installment and other consumer loans		71,443,399			76,033,810
		1,543,517,198			1,455,732,633
Plus deferred loan/lease origination costs, net of fees		5,850,551			4,546,925
		1,549,367,749			1,460,279,558
Less allowance for estimated losses on loans/leases		(23,067,024	)		(21,448,048	)
	$	1,526,300,725		$	1,438,831,510
* Direct financing leases:
Net minimum lease payments to be received	$	175,772,051		$	145,662,254
Estimated unguaranteed residual values of leased assets		1,642,309			1,694,499
Unearned lease/residual income		(22,410,342	)		(18,455,311	)
		155,004,018			128,901,442
Plus deferred lease origination costs, net of fees		5,935,700			4,814,183
		160,939,718			133,715,625
Less allowance for estimated losses on leases		(3,319,131	)		(2,517,217	)
	$	157,620,587		$	131,198,408

*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 and 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 large 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. There were no losses related to residual values for the three and six months ended June 30, 2014 and 2013.

**Includes residential real estate loans held for sale totaling $1,302,175 and $1,358,290 as of June 30, 2014, and December 31, 2013, respectively.

14

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

The aging of the loan/lease portfolio by classes of loans/leases as of June 30, 2014 and December 31, 2013 is presented as follows:

	As of June 30, 2014
Classes of Loans/Leases	Current			30-59 Days Past Due			60-89 Days Past Due			Accruing Past Due 90 Days or More			Nonaccrual Loans/Leases			Total
Commercial and Industrial	$	478,425,272		$	162,344		$	110,714		$	41,950		$	1,754,041		$	480,494,321
Commercial Real Estate
Owner-Occupied Commercial Real Estate		244,861,764			81,356			1,380,715			39,852			1,232,464			247,596,151
Commercial Construction, Land Development, and Other Land		56,324,561			1,086,827			-			-			630,701			58,042,089
Other Non Owner-Occupied Commercial Real Estate		366,941,393			924,340			18,800			-			9,852,968			377,737,501
Direct Financing Leases		151,796,790			599,582			802,650			13,167			1,791,829			155,004,018
Residential Real Estate		151,334,965			65,549			347,400			-			1,451,805			153,199,719
Installment and Other Consumer		70,353,793			94,038			49,196			8,646			937,726			71,443,399
	$	1,520,038,538		$	3,014,036		$	2,709,475		$	103,615		$	17,651,534		$	1,543,517,198
As a percentage of total loan/lease portfolio		98.48	%		0.20	%		0.18	%		0.01	%		1.14	%		100.00	%

	As of December 31, 2013
Classes of Loans/Leases	Current			30-59 Days Past Due			60-89 Days Past Due			Accruing Past Due 90 Days or More			Nonaccrual Loans/Leases			Total
Commercial and Industrial	$	429,557,699		$	199,949		$	185,500		$	-		$	1,744,981		$	431,688,129
Commercial Real Estate
Owner-Occupied Commercial Real Estate		258,557,660			465,418			993,163			60,286			1,139,385			261,215,912
Commercial Construction, Land Development, and Other Land		56,301,186			358,626			-			-			1,185,090			57,844,902
Other Non Owner-Occupied Commercial Real Estate		341,743,730			476,877			151,017			-			10,320,491			352,692,115
Direct Financing Leases		126,878,515			714,464			414,005			-			894,458			128,901,442
Residential Real Estate		142,353,936			3,088,516			275,262			20,126			1,618,483			147,356,323
Installment and Other Consumer		74,811,489			127,082			116,468			3,762			975,009			76,033,810
	$	1,430,204,215		$	5,430,932		$	2,135,415		$	84,174		$	17,877,897		$	1,455,732,633
As a percentage of total loan/lease portfolio		98.25	%		0.37	%		0.15	%		0.01	%		1.23	%		100.00	%

15

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Nonperforming loans/leases by classes of loans/leases as of June 30, 2014 and December 31, 2013 are presented as follows:

	As of June 30, 2014
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases *		Troubled Debt Restructurings - Accruing		Total Nonperforming Loans/Leases		Percentage of Total Nonperforming Loans/Leases
Commercial and Industrial	$	41,950	$	1,754,041	$	1,483,846	$	3,279,837		16.45	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		39,852		1,232,464		-		1,272,316		6.38	%
Commercial Construction, Land Development, and Other Land		-		630,701		-		630,701		3.16	%
Other Non Owner-Occupied Commercial Real Estate		-		9,852,968		-		9,852,968		49.41	%
Direct Financing Leases		13,167		1,791,829		-		1,804,996		9.05	%
Residential Real Estate		-		1,451,805		343,322		1,795,127		9.00	%
Installment and Other Consumer		8,646		937,726		357,000		1,303,372		6.54	%
	$	103,615	$	17,651,534	$	2,184,168	$	19,939,317		100.00	%

*Nonaccrual loans/leases includes $9,778,112 of troubled debt restructurings, including $83,922 in commercial and industrial loans, $8,897,061 in commercial real estate loans, $156,800 in direct financing leases, $443,224 in residential real estate loans, and $197,105 in installment loans.

	As of December 31, 2013
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases **		Troubled Debt Restructurings - Accruing		Total Nonperforming Loans/Leases		Percentage of Total Nonperforming Loans/Leases
Commercial and Industrial	$	-	$	1,744,981	$	878,381	$	2,623,362		12.81	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		60,286		1,139,385		-		1,199,671		5.86	%
Commercial Construction, Land Development, and Other Land		-		1,185,090		-		1,185,090		5.79	%
Other Non Owner-Occupied Commercial Real Estate		-		10,320,491		905,205		11,225,696		54.80	%
Direct Financing Leases		-		894,458		-		894,458		4.37	%
Residential Real Estate		20,126		1,618,483		371,995		2,010,604		9.82	%
Installment and Other Consumer		3,762		975,009		367,000		1,345,771		6.57	%
	$	84,174	$	17,877,897	$	2,522,581	$	20,484,652		100.00	%

**Nonaccrual loans/leases includes $10,890,785 of troubled debt restructurings, including $77,072 in commercial and industrial loans, $10,077,501 in commercial real estate loans, $446,996 in residential real estate loans, and $289,216 in installment loans.

16

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Changes in the allowance for estimated losses on loans/leases by portfolio segment for the three and six months ended June 30, 2014 and 2013, respectively, are presented as follows:

	Three Months Ended June 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	6,647,658		$	10,587,657		$	2,820,239		$	1,388,885		$	1,208,831		$	22,653,270
Provisions (credits) charged to expense		101,718			(33,506	)		566,374			101,030			266,263			1,001,879
Loans/leases charged off		(222,057	)		(311,453	)		(78,755	)		(50,730	)		(12,982	)		(675,977	)
Recoveries on loans/leases previously charged off		22,059			34,994			11,273			-			19,526			87,852
Balance, ending	$	6,549,378		$	10,277,692		$	3,319,131		$	1,439,185		$	1,481,638		$	23,067,024

	Three Months Ended June 30, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate		Installment and Other Consumer			Total
Balance, beginning	$	4,466,264		$	12,188,953		$	2,296,523		$	966,336	$	851,386		$	20,769,462
Provisions (credits) charged to expense		348,298			672,077			340,137			195,774		(36,149	)		1,520,137
Loans/leases charged off		(38,685	)		(820,725	)		(449,622	)		-		(23,875	)		(1,332,907	)
Recoveries on loans/leases previously charged off		14,951			150,192			567			3,231		30,746			199,687
Balance, ending	$	4,790,828		$	12,190,497		$	2,187,605		$	1,165,341	$	822,108		$	21,156,379

	Six Months Ended June 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	5,648,774		$	10,705,434		$	2,517,217		$	1,395,849		$	1,180,774		$	21,448,048
Provisions (credits) charged to expense		1,078,508			(263,491	)		919,021			96,675			265,328			2,096,041
Loans/leases charged off		(226,080	)		(315,551	)		(144,488	)		(53,442	)		(15,737	)		(755,298	)
Recoveries on loans/leases previously charged off		48,176			151,300			27,381			103			51,273			278,233
Balance, ending	$	6,549,378		$	10,277,692		$	3,319,131		$	1,439,185		$	1,481,638		$	23,067,024

	Six Months Ended June 30, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	4,531,545		$	11,069,502		$	1,990,395		$	1,070,328		$	1,263,434		$	19,925,204
Provisions (credits) charged to expense		260,491			1,786,371			718,760			204,673			(392,376	)		2,577,919
Loans/leases charged off		(38,900	)		(820,725	)		(522,671	)		(112,891	)		(140,487	)		(1,635,674	)
Recoveries on loans/leases previously charged off		37,692			155,349			1,121			3,231			91,537			288,930
Balance, ending	$	4,790,828		$	12,190,497		$	2,187,605		$	1,165,341		$	822,108		$	21,156,379

17

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

The allowance for estimated losses on loans/leases by impairment evaluation and by portfolio segment as of June 30, 2014 and December 31, 2013 is presented as follows:

	As of June 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for loans/leases individually evaluated for impairment	$	848,593		$	2,567,526		$	534,043		$	237,358		$	471,025		$	4,658,545
Allowance for loans/leases collectively evaluated for impairment		5,700,785			7,710,166			2,785,088			1,201,827			1,010,613			18,408,479
	$	6,549,378		$	10,277,692		$	3,319,131		$	1,439,185		$	1,481,638		$	23,067,024
Loans/leases individually evaluated for impairment	$	2,104,768		$	11,264,502		$	1,791,828		$	1,795,128		$	1,294,726		$	18,250,952
Loans/leases collectively evaluated for impairment		478,389,553			672,111,239			153,212,190			151,404,591			70,148,673			1,525,266,246
	$	480,494,321		$	683,375,741		$	155,004,018		$	153,199,719		$	71,443,399		$	1,543,517,198
Allowance as a percentage of loans/leases individually evaluated for impairment		40.32	%		22.79	%		29.80	%		13.22	%		36.38	%		25.52	%
Allowance as a percentage of loans/leases collectively evaluated for impairment		1.19	%		1.15	%		1.82	%		0.79	%		1.44	%		1.21	%
		1.36	%		1.50	%		2.14	%		0.94	%		2.07	%		1.49	%

	As of December 31, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for loans/leases individually evaluated for impairment	$	927,453		$	3,174,704		$	192,847		$	246,266		$	467,552		$	5,008,822
Allowance for loans/leases collectively evaluated for impairment		4,721,321			7,530,730			2,324,370			1,149,583			713,222			16,439,226
	$	5,648,774		$	10,705,434		$	2,517,217		$	1,395,849		$	1,180,774		$	21,448,048
Loans/leases individually evaluated for impairment	$	1,761,850		$	12,956,915		$	894,458		$	2,116,747		$	1,350,450		$	19,080,420
Loans/leases collectively evaluated for impairment		429,926,279			658,796,014			128,006,984			145,239,576			74,683,360			1,436,652,213
	$	431,688,129		$	671,752,929		$	128,901,442		$	147,356,323		$	76,033,810		$	1,455,732,633
Allowance as a percentage of loans/leases individually evaluated for impairment		52.64	%		24.50	%		21.56	%		11.63	%		34.62	%		26.25	%
Allowance as a percentage of loans/leases collectively evaluated for impairment		1.10	%		1.14	%		1.82	%		0.79	%		0.95	%		1.14	%
		1.31	%		1.59	%		1.95	%		0.95	%		1.55	%		1.47	%

18

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Information for impaired loans/leases is presented in the tables below. The recorded investment represents customer balances net of any partial charge-offs recognized on the loan/lease. The unpaid principal balance represents the recorded balance outstanding on the loan/lease prior to any partial charge-offs.

Loans/leases, by classes of financing receivable, considered to be impaired as of and for the six months ended June 30, 2014 are presented as follows:

Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received
Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	575,419	$	730,020	$	-	$	631,165	$	1,899	$	1,899
Commercial Real Estate
Owner-Occupied Commercial Real Estate		380,931		380,931		-		410,136		-		-
Commercial Construction, Land Development, and Other Land		1,622,016		1,856,416		-		1,923,766		-		-
Other Non Owner-Occupied Commercial Real Estate		1,941,116		1,941,116		-		2,695,138		13,283		13,283
Direct Financing Leases		793,247		793,247		-		651,516		-		-
Residential Real Estate		954,464		954,464		-		1,137,735		2,175		2,175
Installment and Other Consumer		457,611		457,611		-		501,576		1,780		1,780
	$	6,724,804	$	7,113,805	$	-	$	7,951,032	$	19,137	$	19,137
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	1,529,349	$	2,049,051	$	848,593	$	855,050	$	-	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		552,923		552,923		176,287		223,337		-		-
Commercial Construction, Land Development, and Other Land		600,920		600,920		461,671		605,198		-		-
Other Non Owner-Occupied Commercial Real Estate		6,166,596		6,866,187		1,929,568		5,974,240		-		-
Direct Financing Leases		998,581		998,581		534,043		648,487		-		-
Residential Real Estate		840,664		840,664		237,358		767,008		778		778
Installment and Other Consumer		837,115		837,115		471,025		788,112		-		-
	$	11,526,148	$	12,745,441	$	4,658,545	$	9,861,432	$	778	$	778
Total Impaired Loans/Leases:
Commercial and Industrial	$	2,104,768	$	2,779,071	$	848,593	$	1,486,215	$	1,899	$	1,899
Commercial Real Estate
Owner-Occupied Commercial Real Estate		933,854		933,854		176,287		633,473		-		-
Commercial Construction, Land Development, and Other Land		2,222,936		2,457,336		461,671		2,528,964		-		-
Other Non Owner-Occupied Commercial Real Estate		8,107,712		8,807,303		1,929,568		8,669,378		13,283		13,283
Direct Financing Leases		1,791,828		1,791,828		534,043		1,300,003		-		-
Residential Real Estate		1,795,128		1,795,128		237,358		1,904,743		2,953		2,953
Installment and Other Consumer		1,294,726		1,294,726		471,025		1,289,688		1,780		1,780
	$	18,250,952	$	19,859,246	$	4,658,545	$	17,812,464	$	19,915	$	19,915

Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates.

19

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Loans/leases, by classes of financing receivable, considered to be impaired as of and for the three months ended June 30, 2014 and 2013, respectively, are presented as follows:

	Three Months Ended June 30, 2014						Three Months Ended June 30, 2013
Classes of Loans/Leases	Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received
Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	589,889	$	11	$	11	$	613,506	$	1,937	$	1,937
Commercial Real Estate						-
Owner-Occupied Commercial Real Estate		383,861		-		-		3,107,106		-		-
Commercial Construction, Land Development, and Other Land		1,642,205		-		-		325,000		-		-
Other Non Owner-Occupied Commercial Real Estate		2,222,582		-		-		353,972		657		657
Direct Financing Leases		700,607		-		-		822,718		-		-
Residential Real Estate		1,014,286		720		720		1,057,657		-		-
Installment and Other Consumer		465,820		890		890		915,478		2,686		2,686
	$	7,019,250	$	1,621	$	1,621	$	7,195,437	$	5,280	$	5,280
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	989,979	$	-	$	-	$	1,229,737	$	15,307	$	15,307
Commercial Real Estate						-
Owner-Occupied Commercial Real Estate		334,236		-		-		653,815		-		-
Commercial Construction, Land Development, and Other Land		602,498		-		-		3,656,226		2,716		2,716
Other Non Owner-Occupied Commercial Real Estate		6,057,384		-		-		10,143,708		-		-
Direct Financing Leases		855,628		-		-		133,038		-		-
Residential Real Estate		779,104		4		4		302,334		-		-
Installment and Other Consumer		817,994		-		-		430,427		-		-
	$	10,436,823	$	4	$	4	$	16,549,285	$	18,023	$	18,023
Total Impaired Loans/Leases:
Commercial and Industrial	$	1,579,868	$	11	$	11	$	1,843,243	$	17,244	$	17,244
Commercial Real Estate
Owner-Occupied Commercial Real Estate		718,097		-		-		3,760,921		-		-
Commercial Construction, Land Development, and Other Land		2,244,703		-		-		3,981,226		2,716		2,716
Other Non Owner-Occupied Commercial Real Estate		8,279,966		-		-		10,497,680		657		657
Direct Financing Leases		1,556,235		-		-		955,756		-		-
Residential Real Estate		1,793,390		724		724		1,359,991		-		-
Installment and Other Consumer		1,283,814		890		890		1,345,905		2,686		2,686
	$	17,456,073	$	1,625	$	1,625	$	23,744,722	$	23,303	$	23,303

Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates.

20

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Loans/leases, by classes of financing receivable, considered to be impaired as of December 31, 2013 are presented as follows:

Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	492,622	$	568,951	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		392,542		392,542		-
Commercial Construction, Land Development, and Other Land		1,943,168		2,054,368		-
Other Non Owner-Occupied Commercial Real Estate		1,790,279		1,902,279		-
Direct Financing Leases		557,469		557,469		-
Residential Real Estate		1,071,927		1,071,927		-
Installment and Other Consumer		509,667		509,667		-
	$	6,757,674	$	7,057,203	$	-
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	1,269,228	$	1,956,755	$	927,453
Commercial Real Estate
Owner-Occupied Commercial Real Estate		159,247		159,247		67,498
Commercial Construction, Land Development, and Other Land		888,547		1,011,747		503,825
Other Non Owner-Occupied Commercial Real Estate		7,783,132		8,488,414		2,603,381
Direct Financing Leases		336,989		336,989		192,847
Residential Real Estate		1,044,820		1,044,820		246,266
Installment and Other Consumer		840,783		840,783		467,552
	$	12,322,746	$	13,838,755	$	5,008,822
Total Impaired Loans/Leases:
Commercial and Industrial	$	1,761,850	$	2,525,706	$	927,453
Commercial Real Estate
Owner-Occupied Commercial Real Estate		551,789		551,789		67,498
Commercial Construction, Land Development, and Other Land		2,831,715		3,066,115		503,825
Other Non Owner-Occupied Commercial Real Estate		9,573,411		10,390,693		2,603,381
Direct Financing Leases		894,458		894,458		192,847
Residential Real Estate		2,116,747		2,116,747		246,266
Installment and Other Consumer		1,350,450		1,350,450		467,552
	$	19,080,420	$	20,895,958	$	5,008,822

Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates.

21

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

For commercial and industrial and commercial real estate loans, the Company’s credit quality indicator is internally assigned risk ratings. Each commercial 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 direct financing leases, residential real estate loans, and installment and other consumer loans, the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system.

For each class of financing receivable, the following presents the recorded investment by credit quality indicator as of June 30, 2014 and December 31, 2013:

	As of June 30, 2014
			Commercial Real Estate
					Non Owner-Occupied
Internally Assigned Risk Rating	Commercial and Industrial		Owner-Occupied Commercial Real Estate		Commercial Construction, Land Development, and Other Land		Other Commercial Real Estate		Total
Pass (Ratings 1 through 5)	$	444,280,023	$	228,602,988	$	54,249,436	$	349,022,456	$	1,076,154,903
Special Mention (Rating 6)		22,616,136		10,214,621		-		1,475,286		34,306,043
Substandard (Rating 7)		13,598,162		8,778,542		3,792,653		27,239,759		53,409,116
Doubtful (Rating 8)		-		-		-		-		-
	$	480,494,321	$	247,596,151	$	58,042,089	$	377,737,501	$	1,163,870,062

	As of June 30, 2014
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total
Performing	$	153,199,022	$	151,404,592	$	70,140,027	$	374,743,641
Nonperforming		1,804,996		1,795,127		1,303,372		4,903,495
	$	155,004,018	$	153,199,719	$	71,443,399	$	379,647,136

	As of December 31, 2013
			Commercial Real Estate
					Non Owner-Occupied
Internally Assigned Risk Rating	Commercial and Industrial		Owner-Occupied Commercial Real Estate		Commercial Construction, Land Development, and Other Land		Other Commercial Real Estate		Total
Pass (Ratings 1 through 5)	$	407,294,743	$	250,028,731	$	51,868,919	$	326,168,882	$	1,035,361,275
Special Mention (Rating 6)		11,355,713		8,318,232		1,588,086		3,310,017		24,572,048
Substandard (Rating 7)		13,037,673		2,868,949		4,387,897		23,213,216		43,507,735
Doubtful (Rating 8)		-		-		-		-		-
	$	431,688,129	$	261,215,912	$	57,844,902	$	352,692,115	$	1,103,441,058

	As of December 31, 2013
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total
Performing	$	128,006,984	$	145,345,719	$	74,688,039	$	348,040,742
Nonperforming		894,458		2,010,604		1,345,771		4,250,833
	$	128,901,442	$	147,356,323	$	76,033,810	$	352,291,575

*Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual, accruing loans/leases that are greater than or equal to 90 days past due, and accruing troubled debt restructurings.

22

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

As of June 30, 2014 and December 31, 2013, troubled debt restructurings totaled $11,962,280 and $13,413,366, respectively.

For each class of financing receivable, the following presents the number and recorded investment of troubled debt restructurings, by type of concession, that were restructured during the three and six months ended June 30, 2014 and 2013. The difference between the pre-modification recorded investment and the post-modification recorded investment would be any partial charge-offs at the time of the restructuring.

	For the three months ended June 30, 2014								For the three months ended June 30, 2013
Classes of Loans/Leases	Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance		Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance
CONCESSION - Significant payment delay
Commercial and Industrial		3	$	889,154	$	889,154	$	239,783		-	$	-	$	-	$	-
Residential Real Estate		-	$	-	$	-	$	-		1	$	91,581	$	91,581	$	-
Installment and Other Consumer		-	$	-	$	-	$	-		1	$	370,000	$	370,000	$	-
		3	$	889,154	$	889,154	$	239,783		2	$	461,581	$	461,581	$	-
CONCESSION - Interest rate adjusted below market
Commercial Construction, Land Development, and Other Land		-	$	-	$	-	$	-		1	$	337,500	$	337,500	$	-
Residential Real Estate		-	$	-	$	-	$	-		1	$	160,627	$	160,627	$	-
		-	$	-	$	-	$	-		2	$	498,127	$	498,127	$	-
CONCESSION - Other
Commercial and Industrial		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
TOTAL		4	$	1,317,003	$	1,317,003	$	353,232		4	$	959,708	$	959,708	$	-

	For the six months ended June 30, 2014								For the six months ended June 30, 2013
Classes of Loans/Leases	Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance		Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance
CONCESSION - Significant payment delay
Commercial and Industrial		3	$	889,154	$	889,154	$	239,783		-	$	-	$	-	$	-
Owner-Occupied Commercial Real Estate		-	$	-	$	-	$	-		1	$	47,958	$	47,958	$	-
Direct Financing Leases		1	$	89,443	$	89,443	$	-		-	$	-	$	-	$	-
Residential Real Estate		-	$	-	$	-		-		1	$	91,581	$	91,581	$	-
Installment and Other Consumer		-	$	-	$	-		-		1	$	370,000	$	370,000	$	-
		4	$	978,597	$	978,597	$	239,783		3	$	509,539	$	509,539	$	-
CONCESSION - Interest rate adjusted below market
Commercial Construction, Land Development, and Other Land		-	$	-	$	-	$	-		1	$	337,500	$	337,500	$	-
Residential Real Estate		-	$	-	$	-	$	-		1	$	160,627	$	160,627	$	-
		-	$	-	$	-	$	-		2	$	498,127	$	498,127	$	-
CONCESSION - Extension of maturity
Commercial and Industrial		-	$	-	$	-	$	-		3	$	809,494	$	809,494	$	188,700
Direct Financing Leases		1	$	70,144	$	70,144	$	24,246		-	$	-	$	-	$	-
		1	$	70,144	$	70,144	$	24,246		3	$	809,494	$	809,494	$	188,700
CONCESSION - Other
Commercial and Industrial		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
TOTAL		6	$	1,476,590	$	1,476,590	$	377,478		8	$	1,817,160	$	1,817,160	$	188,700

23

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Of the troubled debt restructurings reported above, four with a post-modification recorded investment totaling $168,751 were on nonaccrual as of June 30, 2014, and three with post-modification recorded investments totaling $178,007 were on nonaccrual as of June 30, 2013.

For the three and six months ended June 30, 2014 and 2013, none of the Company’s troubled debt restructurings had redefaulted within 12 months subsequent to restructure where default is defined as delinquency of 90 days or more and/or placement on nonaccrual status.

24

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

NOTE 4 - EARNINGS PER SHARE

The following information was used in the computation of earnings per share on a basic and diluted basis:

	Three months ended				Six months ended
	June 30,				June 30,
	2014		2013		2014		2013
Net income	$	4,007,836	$	4,045,231	$	7,897,051	$	7,310,375
Less: Preferred stock dividends		373,869		810,838		1,081,877		1,621,675
Net income attributable to QCR Holdings, Inc. common stockholders	$	3,633,967	$	3,234,393	$	6,815,174	$	5,688,700
Earnings per common share attributable to QCR Holdings, Inc. common stockholders
Basic	$	0.46	$	0.60	$	0.86	$	1.10
Diluted	$	0.45	$	0.59	$	0.85	$	1.08
Weighted average common shares outstanding		7,924,624		5,393,062		7,912,830		5,160,327
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan		125,890		104,213		127,449		105,482
Weighted average common and common equivalent shares outstanding		8,050,514		5,497,275		8,040,279		5,265,809

NOTE 5 – BUSINESS SEGMENT INFORMATION

Selected financial and descriptive information is required to be disclosed for reportable operating segments, applying a “management perspective” as the basis for identifying reportable segments. The management perspective is determined by the view that management takes of the segments within the Company when making operating decisions, allocating resources, and measuring performance. The segments of the Company have been defined by the structure of the Company’s internal organization, focusing on the financial information that the Company’s operating decision-makers routinely use to make decisions about operating matters.

The Company’s primary segment, Commercial Banking, is geographically divided by markets into the secondary segments which are the three subsidiary banks wholly-owned by the Company: QCBT, CRBT, and RB&T. CRBT includes CNB’s operations from the date of its acquisition on May 13, 2013. Each of these secondary segments offers similar products and services, but is managed separately due to different pricing, product demand, and consumer markets. Each offers commercial, consumer, and mortgage loans and deposit services.

The Company’s Wealth Management segment represents the trust and asset management and investment management and advisory services offered at the Company’s three subsidiary banks in aggregate. This segment generates income primarily from fees charged based on assets under administration for corporate and personal trusts, custodial services, and investments managed. No assets of the subsidiary banks have been allocated to the Wealth Management segment.

25

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Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

The Company’s All Other segment includes the operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds. This segment includes the corporate operations of the parent company.

Selected financial information on the Company’s business segments is presented as follows for the three and six months ended June 30, 2014 and 2013.

	Commercial Banking
	Quad City		Cedar Rapids		Rockford		Wealth					Intercompany			Consolidated
	Bank & Trust		Bank & Trust		Bank & Trust		Management		All Other			Eliminations			Total
Three Months Ended June 30, 2014
Total revenue	$	11,962,820	$	8,710,753	$	3,701,841	$	2,155,272	$	5,266,342		$	(5,347,439	)	$	26,449,589
Net interest income	$	9,080,775	$	5,739,056	$	2,576,734	$	-	$	(431,222	)	$	-		$	16,965,343
Net income	$	2,454,422	$	1,781,987	$	614,264	$	386,913	$	4,007,836		$	(5,237,586	)	$	4,007,836
Total assets	$	1,278,200,724	$	826,278,230	$	351,309,896	$	-	$	208,242,778		$	(199,192,145	)	$	2,464,839,483
Provision for loan/lease losses	$	560,879	$	250,000	$	191,000	$	-	$	-		$	-		$	1,001,879
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,770,677	$	-	$	-	$	-		$	-		$	1,770,677
Three Months Ended June 30, 2013
Total revenue	$	11,810,586	$	8,140,723	$	3,649,811	$	1,728,074	$	6,439,309		$	(4,680,346	)	$	27,088,157
Net interest income	$	8,485,092	$	5,177,399	$	2,434,391	$	-	$	(388,830	)	$	-		$	15,708,052
Net income	$	1,951,271	$	1,864,374	$	719,480	$	232,035	$	4,045,231		$	(4,767,160	)	$	4,045,231
Total assets	$	1,226,928,751	$	896,869,042	$	333,996,843	$	-	$	211,484,709		$	(222,507,868	)	$	2,446,771,477
Provision for loan/lease losses	$	1,020,123	$	100,014	$	400,000	$	-	$	-		$	-		$	1,520,137
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	3,440,076	$	-	$	-	$	-		$	-		$	3,440,076
Six Months Ended June 30, 2014
Total revenue	$	23,900,953	$	17,014,378	$	7,184,717	$	4,304,606	$	10,490,207		$	(10,663,220	)	$	52,231,641
Net interest income	$	18,001,813	$	11,641,115	$	5,052,416	$	-	$	(880,760	)	$	-		$	33,814,584
Net income	$	4,795,705	$	3,716,757	$	1,085,303	$	846,207	$	7,897,051		$	(10,443,972	)	$	7,897,051
Total assets	$	1,278,200,724	$	826,278,230	$	351,309,896	$	-	$	208,242,778		$	(199,192,145	)	$	2,464,839,483
Provision for loan/lease losses	$	1,170,041	$	550,000	$	376,000	$	-	$	-		$	-		$	2,096,041
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,770,677	$	-	$	-	$	-		$	-		$	1,770,677
Six Months Ended June 30, 2013
Total revenue	$	23,866,247	$	15,069,074	$	6,833,870	$	3,377,085	$	11,171,879		$	(9,488,487	)	$	50,829,668
Net interest income	$	16,876,630	$	9,022,281	$	4,739,468	$	-	$	(739,010	)	$	-		$	29,899,369
Net income	$	4,448,296	$	3,585,185	$	815,722	$	445,042	$	7,310,375		$	(9,294,245	)	$	7,310,375
Total assets	$	1,226,928,751	$	896,869,042	$	333,996,843	$	-	$	211,484,709		$	(222,507,868	)	$	2,446,771,477
Provision for loan/lease losses	$	1,377,905	$	400,014	$	800,000	$	-	$	-		$	-		$	2,577,919
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	3,440,076	$	-	$	-	$	-		$	-		$	3,440,076

26

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

NOTE 6 – FAIR VALUE

Accounting guidance on fair value measurement uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows:

● Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in markets;

● Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and

● Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Assets measured at fair value on a recurring basis comprise the following at June 30, 2014 and December 31, 2013:

			Fair Value Measurements at Reporting Date Using
			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2014:
Securities available for sale:
U.S. govt. sponsored agency securities	$	325,620,456	$	-	$	325,620,456	$	-
Residential mortgage-backed and related securities		153,895,214		-		153,895,214		-
Municipal securities		33,857,471		-		33,857,471		-
Other securities		1,961,956		318,370		1,643,586		-
Derivative instruments		1,820,501		-		1,820,501		-
	$	517,155,598	$	318,370	$	516,837,228	$	-
December 31, 2013:
Securities available for sale:
U.S. govt. sponsored agency securities	$	356,472,987	$	-	$	356,472,987	$	-
Residential mortgage-backed and related securities		157,429,451		-		157,429,451		-
Municipal securities		35,958,857		-		35,958,857		-
Other securities		1,897,163		317,698		1,579,465		-
	$	551,758,458	$	317,698	$	551,440,760	$	-

There were no transfers of assets or liabilities between Levels 1, 2, and 3 of the fair value hierarchy for the three and six months ended June 30, 2014 and 2013.

A small portion of the securities available for sale portfolio consists of common stock issued by various unrelated bank holding companies. The fair values used by the Company are obtained from an independent pricing service and represent quoted market prices for the identical securities (Level 1 inputs).

The remainder of the securities available for sale portfolio consists of securities whereby the Company obtains fair values from an independent pricing service. The fair values are determined by pricing models that consider observable market data, such as interest rate volatilities, LIBOR yield curve, credit spreads and prices from market makers and live trading systems (Level 2 inputs).

27

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Derivative instruments consist of interest rate caps that are used for the purpose of hedging interest rate risk. See Note 8 to the Consolidated Financial Statements for the details of these instruments. The fair values are determined by pricing models that consider observable market data for derivative instruments with similar structures (Level 2 inputs).

Certain financial assets are measured at fair value on a non-recurring basis; that is, the assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Assets measured at fair value on a non-recurring basis comprise the following at June 30, 2014 and December 31, 2013:

			Fair Value Measurements at Reporting Date Using
	Fair Value		Level 1		Level 2		Level 3
June 30, 2014:
Impaired loans/leases	$	8,281,725	$	-	$	-	$	8,281,725
Other real estate owned		11,827,311		-		-		11,827,311
	$	20,109,036	$	-	$	-	$	20,109,036
December 31, 2013:
Impaired loans/leases	$	9,009,557	$	-	$	-	$	9,009,557
Other real estate owned		10,507,377		-		-		10,507,377
	$	19,516,934	$	-	$	-	$	19,516,934

Impaired loans/leases are evaluated and valued at the time the loan/lease is identified as impaired, at the lower of cost or fair value, and are classified as Level 3 in the fair value hierarchy.  Fair value is measured based on the value of the collateral securing these loans/leases.  Collateral may be real estate and/or business assets, including equipment, inventory and/or accounts receivable, and is determined based on appraisals by qualified licensed appraisers hired by the Company.  Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business.  

Other real estate owned in the table above consists of property acquired through foreclosures and settlements of loans.  Property acquired is carried at the estimated fair value of the property, less disposal costs, and is classified as a Level 3 in the fair value hierarchy. The estimated fair value of the property is determined based on appraisals by qualified licensed appraisers hired by the Company.  Appraised and reported values are discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the property.

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value:

	Quantitave Information about Level Fair Value Measurments
	Fair Value		Valuation Technique	Unobservable Input	Range
June 30, 2014:
Impaired loans/leases	$	8,281,725	Appraisal of collateral	Appraisal adjustments		-10.00% to -50.00	%
Other real estate owned		11,827,311	Appraisal of collateral	Appraisal adjustments		0.00% to -35.00	%

	Quantitave Information about Level Fair Value Measurments
	Fair Value		Valuation Technique	Unobservable Input	Range
December 31, 2013:
Impaired loans/leases	$	9,009,557	Appraisal of collateral	Appraisal adjustments		-10.00% to -50.00	%
Other real estate owned		10,507,377	Appraisal of collateral	Appraisal adjustments		0.00% to -35.00	%

28

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

For the impaired loans/leases and other real estate owned, the Company records carrying value at fair value less disposal or selling costs. The amounts reported in the tables above are fair values before the adjustment for disposal or selling costs.

There have been no changes in valuation techniques used for any assets measured at fair value during the three and six months ended June 30, 2014 and 2013.

The following table presents the carrying values and estimated fair values of financial assets and liabilities carried on the Company’s consolidated balance sheets, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis:

	Fair Value	As of June 30, 2014				As of December 31, 2013
	Hierarchy	Carrying		Estimated		Carrying		Estimated
	Level	Value		Fair Value		Value		Fair Value
Cash and due from banks	Level 1	$	56,292,577	$	56,292,577	$	41,950,790	$	41,950,790
Federal funds sold	Level 2		20,490,000		20,490,000		39,435,000		39,435,000
Interest-bearing deposits at financial institutions	Level 2		36,786,049		36,786,049		33,044,917		33,044,917
Investment securities:
Held to maturity	Level 3		166,787,372		165,670,327		145,451,895		138,640,105
Available for sale	See Previous Table		517,155,598		517,155,598		551,758,458		551,758,458
Loans/leases receivable, net	Level 3		7,668,264		8,281,725		8,342,182		9,009,557
Loans/leases receivable, net	Level 2		1,518,632,461		1,521,236,736		1,430,489,328		1,441,952,443
Derivative Instruments	Level 2		1,820,501		1,820,501		-		-
Deposits:
Nonmaturity deposits	Level 2		1,291,304,395		1,291,304,395		1,256,209,352		1,256,209,352
Time deposits	Level 2		386,063,880		387,275,000		390,781,891		391,923,000
Short-term borrowings	Level 2		204,321,854		204,321,854		149,292,967		149,292,967
Federal Home Loan Bank advances	Level 2		222,900,000		235,770,000		231,350,000		241,623,000
Other borrowings	Level 2		151,452,927		162,038,000		142,448,362		152,761,000
Junior subordinated debentures	Level 2		40,356,154		28,332,467		40,289,830		28,094,228

The methodologies for estimating the fair value of financial assets and liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. For certain financial assets and liabilities, carrying value approximates fair value due to the nature of the financial instrument. These instruments include: cash and due from banks, federal funds sold, interest-bearing deposits at financial institutions, non-maturity deposits, and short-term borrowings. The Company used the following methods and assumptions in estimating the fair value of the following instruments:

Securities held to maturity: The fair values are estimated using pricing models that consider certain observable market data, however, as most of the securities have limited or no trading activity and are not rated, the fair value is partially dependent upon unobservable inputs.

Loans/leases receivable: The fair values for all types of loans/leases are estimated using discounted cash flow analyses, using interest rates currently being offered for loans/leases with similar terms to borrowers with similar credit quality. The fair value of loans held for sale is based on quoted market prices of similar loans sold in the secondary market.

Deposits: The fair values disclosed for demand deposits equal their carrying amounts, which represent the amount payable on demand. Fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on time deposits to a schedule of aggregate expected monthly maturities on time deposits.

FHLB advances and junior subordinated debentures: The fair value of these instruments is estimated using discounted cash flow analyses, based on the Company's current incremental borrowing rates for similar types of borrowing arrangements. 

29

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Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Other borrowings: The fair value for the wholesale repurchase agreements and fixed rate other borrowings is estimated using rates currently available for debt with similar terms and remaining maturities. The fair value for variable rate other borrowings is equal to its carrying value.

Commitments to extend credit: The fair value of these commitments is not material.

NOTE 7 – FULL REDEMPTION OF SERIES F PREFERRED STOCK

On June 30, 2014, the Company redeemed the remaining 14,867 shares of its Series F Non-Cumulative Perpetual Preferred Stock (the “Series F Preferred Stock”) from the United States Department of the Treasury (“Treasury”) for an aggregate redemption amount of $14,823,922, plus unpaid dividends to the date of redemption of $373,869.

Previously, on September 15, 2011, the Company issued 40,090 shares of Series F Preferred Stock to the Treasury for an aggregate purchase price of $40,090,000. The sale of Series F Preferred Stock was the result of an investment by Treasury under the Small Business Lending Fund. On June 29, 2012, the Company redeemed 10,223 shares of Series F Preferred Stock and on March 31, 2014, the Company redeemed an additional 15,000 shares.

With the final redemption on June 30, 2014, the Company no longer has any outstanding preferred stock and all preferred stock dividend payment commitments have been eliminated.

NOTE 8 – DERIVATIVES AND HEDGING ACTIVITIES

The Company enters into derivative financial instruments as part of its strategy to manage its exposure to changes in interest rates.

Derivative instruments represent contracts between parties that result in one party delivering cash to the other party based on a notional amount and an underlying index (such as a rate, security price or price index) as specified in the contract. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract with the underlying index.

The derivative financial instruments currently used by the Company to manage its exposure to interest rate risk include: (1) interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market (although this type of derivative is negligible); and (2) interest rate caps to manage the interest rate risk of certain fixed and variable rate assets and variable rate liabilities. This footnote will address the latter.

During the second quarter of 2014, the Company executed and designated two interest rate cap derivatives as cash flow hedges of short-term FHLB advances. The short-term FHLB advances rates will fluctuate with rate movements; therefore the Bank determined it was necessary to hedge against this increase in interest expense in a rising rate environment. The caps purchased will essentially set a ceiling on the rate paid on the FHLB advances, minimizing the risk associated with rate increases.

Below is a summary of the interest rate cap derivatives held by the Company as of June 30, 2014. An initial premium of $2.1 million was paid for the two caps. The fair value of these assets will fluctuate with market value changes, as well as amortization of the initial premium to interest expense.

30

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Effective Date	Maturity Date	Balance Sheet Location	Notional Amount		Accounting Treatment	Fair Value
June 5, 2014	June 5, 2019	Other Assets	$	15,000,000	Cash Flow Hedging	$	707,710
June 5, 2014	June 5, 2021	Other Assets		15,000,000	Cash Flow Hedging		1,112,791
			$	30,000,000		$	1,820,501

Changes in the fair values of derivative financial instruments accounted for as cash flow hedges, to the extent they are effective hedges, are recorded as a component of accumulated other comprehensive income. The following is a summary of how accumulated other comprehensive income was impacted during the reporting periods:

	Three and Six Months Ended June 30, 2014
Unrealized loss at beginning of period	$	-
Amount reclassified from accumulated other comprehensive income to interest expense on FHLB Advances		-
Amount of loss recognized in other comprehensive income		(251,149	)
Unrealized loss at end of period	$	(251,149	)

Changes in the fair value related to the ineffective portion of cash flow hedges are reported in non-interest income during the period of the change. No portion of the change in fair value, both for the current period and year-to-date, was due to ineffectiveness.

Derivative financial instruments are valued by the transaction counterparty on a monthly basis and corroborated by a third party annually. The company uses the hypothetical derivative method to assess and measure effectiveness in accordance with ASC 815, Derivatives and Hedging.

31

Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

GENERAL

QCR Holdings, Inc. is the parent company of QCBT, CRBT, and RB&T.

QCBT and CRBT are Iowa-chartered commercial banks, and RB&T is an Illinois-chartered commercial bank. All are members of the Federal Reserve System with depository accounts insured to the maximum amount permitted by law by the Federal Deposit Insurance Corporation (“FDIC”).

● QCBT commenced operations in 1994 and provides full-service commercial and consumer banking, and trust and asset management services, to the Quad City area and adjacent communities through its five offices that are located in Bettendorf and Davenport, Iowa and Moline, Illinois. QCBT also provides leasing services through its wholly-owned subsidiary, m2 Lease Funds, located in Brookfield, Wisconsin. In addition, QCBT owns 100% of Quad City Investment Advisors, LLC, which is an investment management and advisory company.

● CRBT commenced operations in 2001 and provides full-service commercial and consumer banking, and trust and asset management services to Cedar Rapids, Iowa and adjacent communities through its main office located on First Avenue in downtown Cedar Rapids, Iowa and its branch facility located on Council Street in northern Cedar Rapids. On October 26, 2013, CNB, which was acquired by the Company on May 13, 2013, merged with and into CRBT. CNB’s merged branch offices operate as a division of CRBT under the name “Community Bank & Trust,” and serve Cedar Falls and Waterloo, Iowa and adjacent communities through its three offices (two in Waterloo and one in Cedar Falls).

● RB&T commenced operations in January 2005 and provides full-service commercial and consumer banking, and trust and asset management services, to Rockford, Illinois and adjacent communities through its main office located on Guilford Road at Alpine Road in Rockford and its branch facility in downtown Rockford.

OVERVIEW

The Company recognized net income of $4.0 million for the quarter ended June 30, 2014. After preferred stock dividends of $374 thousand, the Company reported net income attributable to common stockholders of $3.6 million, or diluted earnings per common share of $0.45. By comparison, for the second quarter of 2013, the Company recognized net income of $4.0 million, which included net pre-tax revenue from the acquisition of CNB totaling $1.4 million, consisting of a $1.8 million bargain purchase gain partially offset by $432 thousand of acquisition costs. After preferred stock dividends of $811 thousand, the Company reported net income attributable to common stockholders of $3.2 million, or diluted earnings per common share of $0.59.

Although pre-tax core earnings (excluding the aforementioned net revenue from the acquisition of CNB in 2013) increased approximately 27% in the second quarter of 2014 compared to the second quarter of 2013, diluted earnings per common share decreased by $0.14, or 24%, due to the issuance of new common stock related to the CNB acquisition in the second quarter of 2013 (834,715 shares issued), as well as the conversion of Series E Preferred Stock to common stock that was executed in the fourth quarter of 2013 (2,057,502 shares issued). These two events increased weighted average common shares outstanding approximately 47%, resulting in the lower diluted earnings per share in the second quarter of 2014.

32

Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

Following is a table that represents the various net income measurements for the Company.

	For the three months ended				For the six months ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
Net income	$	4,007,836	$	4,045,231	$	7,897,051	$	7,310,375
Less: Preferred stock dividends		373,869		810,838		1,081,877		1,621,675
Net income attributable to QCR Holdings, Inc. common stockholders	$	3,633,967	$	3,234,393	$	6,815,174	$	5,688,700
Diluted earnings per common share	$	0.45	$	0.59	$	0.85	$	1.08
Weighted average common and common equivalent outstanding		8,050,514		5,497,275		8,040,279		5,265,809

Following is a table that represents the major income and expense categories for the Company.

	For the three months ended									For the six months ended
	June 30, 2014			March 31, 2014			June 30, 2013			June 30, 2014			June 30, 2013
Net interest income	$	16,965,343		$	16,849,241		$	15,708,052		$	33,814,584		$	29,899,369
Provision for loan/lease losses		(1,001,879	)		(1,094,162	)		(1,520,137	)		(2,096,041	)		(2,577,919	)
Noninterest income		5,344,213			4,746,841			6,948,756			10,091,054			12,152,785
Noninterest expense		(16,106,529	)		(16,140,420	)		(15,234,349	)		(32,246,949	)		(29,192,849	)
Federal and state income tax		(1,193,312	)		(472,285	)		(1,857,091	)		(1,665,597	)		(2,971,011	)
Net income	$	4,007,836		$	3,889,215		$	4,045,231		$	7,897,051		$	7,310,375

In comparing quarter-over-quarter, following are some noteworthy changes in the Company’s financial results:

● Provision for loan/lease losses decreased 8% compared to the first quarter of 2014.

● Noninterest income increased 13% compared to the first quarter of 2014. Gains on the sale of government guaranteed portions of loans accounted for a large portion of this increase. The first quarter of 2014 was historically low in this category, whereas the second quarter of 2014 showed improvement.

● Noninterest expense stayed relatively flat, decreasing less than 1%.

● Federal and state income tax expense more than doubled as the growth in taxable income outpaced the growth in nontaxable income in the second quarter of 2014. Additionally, the Company recognized a one-time tax benefit in the first quarter of 2014 related to the finalization of tax issues in connection with the Community National acquisition following the filing of the acquired entity’s final tax returns.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

NET INTEREST INCOME

Net interest income, on a tax equivalent basis, increased $1.6 million, or 10%, to $17.9 million for the quarter ended June 30, 2014, from $16.3 million for the same period of 2013. The increase in net interest income was primarily driven by the acquisition of CNB in May 2013. The Company has also improved net interest income as the result of:

● Organic loan/lease growth,

● Further diversification of the Company’s securities portfolio with increased investment in tax-exempt municipal securities,

● Continued reductions in the cost of deposits, and

● Continued growth in noninterest bearing deposits.

A comparison of yields, spread and margin from the second quarter of 2013 to the second quarter of 2014 is as follows (on a tax equivalent basis):

● The average yield on interest-earning assets increased 6 basis points.

● The average cost of interest-bearing liabilities decreased 9 basis points.

● The net interest spread increased 15 basis points from 2.72% to 2.87%.

● The net interest margin improved 15 basis points from 2.99% to 3.14%.

Net interest income, on a tax equivalent basis, increased $4.5 million, or 14%, to $35.6 million for the first half of 2014, from $31.1 million for the first half of 2013. The increase in net interest income was primarily driven by the acquisition of CNB in May 2013, as well as by the additional items listed above.

A comparison of yields, spread and margin from the first half of 2013 to the first half of 2014 is as follows (on a tax equivalent basis):

● The average yield on interest-earning assets was flat at 3.85%.

● The average cost of interest-bearing liabilities decreased 13 basis points.

● The net interest spread increased 13 basis points from 2.71% to 2.84%.

● The net interest margin improved 12 basis points from 3.00% to 3.12%.

The Company’s management closely monitors and manages net interest margin. From a profitability standpoint, an important challenge for the Company’s subsidiary banks and leasing company is the improvement of their net interest margins while balancing interest rate risk. Management continually addresses this issue with pricing and other balance sheet management strategies including, but not limited to, the use of alternative funding sources. Over the past several years, the Company’s management has emphasized improving its funding mix by reducing its reliance on long-term wholesale funding, which tends to be at a higher cost than deposits. Also, the Company’s management has focused on reducing the cost of portions of the Company’s existing wholesale funding. As an example, during the first quarter of 2013, QCBT modified $50.0 million of fixed rate wholesale structured repurchase agreements (“structured repos”) with a weighted average interest rate of 3.21% and a weighted average maturity of February 2016 into new fixed rate structured repos with a weighted average interest rate of 2.65% and a weighted average maturity of May 2020. This modification serves to reduce interest expense and improve net interest margin, and minimizes the exposure to rising rates through duration extension of fixed rate liabilities.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

The Company’s average balances, interest income/expense, and rates earned/paid on major balance sheet categories, as well as the components of change in net interest income, are presented in the following tables:

	For the three months ended June 30,
	2014								2013
				Interest		Average						Interest		Average
	Average			Earned		Yield or			Average			Earned		Yield or
	Balance			or Paid		Cost			Balance			or Paid		Cost
	(dollars in thousands)
ASSETS
Interest earning assets:
Federal funds sold	$	12,323		$	4		0.13	%	$	8,410		$	3		0.14	%
Interest-bearing deposits at financial institutions		43,445			71		0.66	%		35,158			62		0.71	%
Investment securities (1)		702,579			4,765		2.72	%		714,808			4,040		2.27	%
Restricted investment securities		16,604			139		3.36	%		16,531			131		3.18	%
Gross loans/leases receivable (1) (2) (3)		1,518,902			17,093		4.51	%		1,418,389			16,530		4.67	%
Total interest earning assets	$	2,293,853		$	22,072		3.86	%	$	2,193,296		$	20,766		3.80	%
Noninterest-earning assets:
Cash and due from banks	$	44,406							$	41,791
Premises and equipment		36,524								35,698
Less allowance for estimated losses on loans/leases		(22,876	)							(22,192	)
Other		73,758								74,743
Total assets	$	2,425,665							$	2,323,336
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing deposits	$	721,687		$	453		0.25	%	$	632,932		$	398		0.25	%
Time deposits		379,064			649		0.69	%		416,085			779		0.75	%
Short-term borrowings		162,314			61		0.15	%		195,202			103		0.21	%
Federal Home Loan Bank advances		227,226			1,496		2.64	%		216,725			1,727		3.20	%
Junior subordinated debentures		40,339			307		3.05	%		41,398			261		2.53	%
Other borrowings		144,105			1,174		3.27	%		140,091			1,163		3.33	%
Total interest-bearing liabilities	$	1,674,735		$	4,140		0.99	%	$	1,642,433		$	4,431		1.08	%
Noninterest-bearing demand deposits	$	576,774							$	502,078
Other noninterest-bearing liabilities		31,626								32,154
Total liabilities	$	2,283,135							$	2,176,665
Stockholders' equity		142,530								146,671
Total liabilities and stockholders' equity	$	2,425,665							$	2,323,336
Net interest income				$	17,932							$	16,335
Net interest spread							2.87	%							2.72	%
Net interest margin							3.14	%							2.99	%
Ratio of average interest-earning assets to average interest-bearing liabilities		136.97	%							133.54	%

(1) Interest earned and yields on nontaxable investment securities and nontaxable loans are determined on a tax equivalent basis using a 35% tax rate.

(2) Loan/lease fees are not material and are included in interest income from loans/leases receivable in accordance with accounting and regulatory guidance.

(3) Non-accrual loans/leases are included in the average balance for gross loans/leases receivable in accordance with accounting and regulatory guidance.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

Analysis of Changes of Interest Income/Interest Expense

For the three months ended June 30, 2014

	Inc./(Dec.)			Components
	from			of Change (1)
	Prior Period			Rate			Volume
	2014 vs. 2013
	(dollars in thousands)
INTEREST INCOME
Federal funds sold	$	1		$	(2	)	$	3
Interest-bearing deposits at financial institutions		9			(25	)		34
Investment securities (2)		725			1,178			(453	)
Restricted investment securities		8			8			0
Gross loans/leases receivable (3) (4)		563			(2,885	)		3,448
Total change in interest income	$	1,306		$	(1,726	)	$	3,032
INTEREST EXPENSE
Interest-bearing deposits	$	55		$	(5	)	$	60
Time deposits		(130	)		(64	)		(66	)
Short-term borrowings		(42	)		(26	)		(16	)
Federal Home Loan Bank advances		(231	)		(706	)		475
Junior subordinated debentures		46			89			(43	)
Other borrowings		11			(101	)		112
Total change in interest expense	$	(291	)	$	(813	)	$	522
Total change in net interest income	$	1,597		$	(913	)	$	2,510

(1)	The column "Inc./(Dec.) from Prior Period" is segmented into the changes attributable to variations in volume and the changes attributable to changes in interest rates. The variations attributable to simultaneous volume and rate changes have been proportionately allocated to rate and volume.
(2)	Interest earned and yields on nontaxable investment securities and nontaxable loans are determined on a tax equivalent basis using a 35% tax rate.
(3)	Loan/lease fees are not material and are included in interest income from loans/leases receivable in accordance with accounting and regulatory guidance.
(4)	Non-accrual loans/leases are included in the average balance for gross loans/leases receivable in accordance with accounting and regulatory guidance.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

	For the six months ended June 30,
	2014								2013
				Interest		Average						Interest		Average
	Average			Earned		Yield or			Average			Earned		Yield or
	Balance			or Paid		Cost			Balance			or Paid		Cost
	(dollars in thousands)
ASSETS
Interest earning assets:
Federal funds sold	$	11,659		$	7		0.12	%	$	5,379		$	4		0.15	%
Interest-bearing deposits at financial institutions		65,911			162		0.50	%		36,496			122		0.67	%
Investment securities (1)		712,400			9,419		2.67	%		681,723			7,697		2.28	%
Restricted investment securities		16,927			269		3.20	%		15,973			256		3.23	%
Gross loans/leases receivable (1) (2) (3)		1,491,982			34,060		4.60	%		1,348,715			31,782		4.75	%
Total interest earning assets	$	2,298,877		$	43,917		3.85	%	$	2,088,286		$	39,861		3.85	%
Noninterest-earning assets:
Cash and due from banks	$	44,118							$	40,849
Premises and equipment		36,628								33,450
Less allowance for estimated losses on loans/leases		(22,385	)							(21,208	)
Other		72,674								75,297
Total assets	$	2,429,912							$	2,216,674
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing deposits	$	718,371		$	899		0.25	%	$	597,918		$	807		0.27	%
Time deposits		380,893			1,304		0.69	%		374,890			1,487		0.80	%
Short-term borrowings		156,152			113		0.15	%		185,454			167		0.18	%
Federal Home Loan Bank advances		230,927			3,052		2.67	%		209,672			3,459		3.33	%
Junior subordinated debentures		40,323			612		3.06	%		38,742			503		2.61	%
Other borrowings		143,211			2,346		3.30	%		139,151			2,354		3.41	%
Total interest-bearing liabilities	$	1,669,875		$	8,326		1.01	%	$	1,545,827		$	8,777		1.14	%
Noninterest-bearing demand deposits	$	581,108							$	494,671
Other noninterest-bearing liabilities		32,633								32,249
Total liabilities	$	2,283,615							$	2,072,747
Stockholders' equity		146,297								143,927
Total liabilities and stockholders' equity	$	2,429,912							$	2,216,674
Net interest income				$	35,591							$	31,084
Net interest spread							2.84	%							2.71	%
Net interest margin							3.12	%							3.00	%
Ratio of average interest-earning assets to average interest-bearing liabilities		137.67	%							135.09	%

(1)	Interest earned and yields on nontaxable investment securities and nontaxable loans are determined on a tax equivalent basis using a 35% tax rate.
(2)	Loan/lease fees are not material and are included in interest income from loans/leases receivable in accordance with accounting and regulatory guidance.
(3)	Non-accrual loans/leases are included in the average balance for gross loans/leases receivable in accordance with accounting and regulatory guidance.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

Analysis of Changes of Interest Income/Interest Expense

For the six months ended June 30, 2014

	Inc./(Dec.)			Components
	from			of Change (1)
	Prior Period			Rate			Volume
	2014 vs. 2013
	(dollars in thousands)
INTEREST INCOME
Federal funds sold	$	3		$	(3	)	$	6
Interest-bearing deposits at financial institutions		40			(88	)		128
Investment securities (2)		1,722			1,364			358
Restricted investment securities		13			(6	)		19
Gross loans/leases receivable (3) (4)		2,278			(2,576	)		4,854
Total change in interest income	$	4,056		$	(1,309	)	$	5,365
INTEREST EXPENSE
Interest-bearing deposits	$	92		$	(149	)	$	241
Time deposits		(183	)		(250	)		67
Short-term borrowings		(54	)		(30	)		(24	)
Federal Home Loan Bank advances		(408	)		(1,207	)		799
Junior subordinated debentures		110			89			21
Other borrowings		(8	)		(148	)		140
Total change in interest expense	$	(451	)	$	(1,695	)	$	1,244
Total change in net interest income	$	4,507		$	386		$	4,121

(1)	The column "Inc./(Dec.) from Prior Period" is segmented into the changes attributable to variations in volume and the changes attributable to changes in interest rates. The variations attributable to simultaneous volume and rate changes have been proportionately allocated to rate and volume.
(2)	Interest earned and yields on nontaxable investment securities and nontaxable loans are determined on a tax equivalent basis using a 35% tax rate.
(3)	Loan/lease fees are not material and are included in interest income from loans/leases receivable in accordance with accounting and regulatory guidance.
(4)	Non-accrual loans/leases are included in the average balance for gross loans/leases receivable in accordance with accounting and regulatory guidance.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

CRITICAL ACCOUNTING POLICIES

The Company’s financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. The financial information contained within these statements is, to a significant extent, financial information that is based on approximate measures of the financial effects of transactions and events that have already occurred.

Based on its consideration of accounting policies that involve the most complex and subjective decisions and assessments, management has identified its most critical accounting policy to be that related to the allowance for estimated losses on loans/leases (“allowance”). The Company’s allowance methodology incorporates a variety of risk considerations, both quantitative and qualitative, in establishing an allowance that management believes is appropriate at each reporting date. Quantitative factors include the Company’s historical loss experience, delinquency and charge-off trends, collateral values, changes in nonperforming loans/leases, and other factors. Quantitative factors also incorporate known information about individual loans/leases, including borrowers’ sensitivity to interest rate movements. Qualitative factors include the general economic environment in the Company’s markets, including economic conditions throughout the Midwest, and in particular, the state of certain industries. Size and complexity of individual credits in relation to loan/lease structure, existing loan/lease policies and pace of portfolio growth are other qualitative factors that are considered in the methodology. Management may report a materially different amount for the provision for loan/lease losses (“provision”) in the statement of income to change the allowance if its assessment of the above factors were different. This discussion and analysis should be read in conjunction with the Company’s financial statements and the accompanying notes presented elsewhere herein, as well as the portion in the section entitled “Financial Condition” of this Management’s Discussion and Analysis that discusses the allowance. Although management believes the level of the allowance as of June 30, 2014 was adequate to absorb losses inherent in the loan/lease portfolio, a decline in local economic conditions, or other factors, could result in increasing losses that cannot be reasonably predicted at this time.

The Company’s assessment of other-than-temporary impairment of its available-for-sale securities portfolio is another critical accounting policy as a result of the level of judgment required by management. Available-for-sale securities are evaluated to determine whether declines in fair value below their cost are other-than-temporary. In estimating other-than-temporary impairment losses, management considers a number of factors including, but not limited to, (1) the length of time and extent to which the fair value has been less than amortized cost, (2) the financial condition and near-term prospects of the issuer, (3) the current market conditions, and (4) the intent of the Company to not sell the security prior to recovery and whether it is not more-likely-than-not that the Company will be required to sell the security prior to recovery. The discussion regarding the Company’s assessment of other-than-temporary impairment should be read in conjunction with the Company’s financial statements and the accompanying notes presented elsewhere herein.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

RESULTS OF OPERATIONS

INTEREST INCOME

Interest income grew $966 thousand, or 5%, comparing the second quarter of 2014 to the same period of 2013. For the first half of 2014, interest income grew $3.5 million, or 9%, compared to the first half of 2013. The majority of this growth was the result of the acquisition of CNB and the addition of its earning assets. Secondarily, the Company’s three legacy charters had success growing loans and leases over the last twelve months. Overall, the Company’s earning assets increased a total of $100.6 million, comparing June 30, 2014 to June 30, 2013. The securities portfolio yield continued to increase (from 2.27% for the second quarter of 2013 to 2.72% for the second quarter of 2014 and from 2.28% for the first half of 2013 to 2.67% for the first half of 2014) as the Company continues to focus on diversifying its securities portfolio, including increasing its portfolio of agency-sponsored mortgage-backed securities as well as municipal securities, in an effort to increase interest income. Of the latter, all are located in the Midwest with strong underwriting conducted before investment.

The Company intends to continue to grow quality loans and leases as well as to diversify the securities portfolio to maximize yield while minimizing credit and interest rate risk.

INTEREST EXPENSE

Interest expense for the second quarter of 2014 decreased $291 thousand, or 7%, from the second quarter of 2013. For the first half of 2014, interest expense decreased $451 thousand, or 5%, compared to the first half of 2013. Considering the growth of interest-bearing liabilities (average balances grew $124.0 million, or 8%, from the first half of 2013 to the same period of 2014) from the acquisition of CNB as well as organic growth at the Company’s legacy charters, the Company has been successful in maintaining pricing discipline on deposits and decreasing the cost of borrowings, which has more than offset the growth impact and contributed to the net decline in interest expense. Management has placed a strong focus on reducing the reliance on long-term wholesale funding as it tends to be higher cost than deposits. In recent years, the majority of maturing wholesale funds have been replaced by core deposits, or, to a lesser extent, have been replaced by new wholesale funds at significantly reduced cost. Continuing this trend will strengthen the Company’s franchise value, reduce funding costs, and increase fee income opportunities through deposit service charges.

Management continues to consider strategies to accelerate the reduction of the reliance on wholesale funding and continue the shift in mix to a funding base consisting of a higher percentage of core deposits, including noninterest-bearing deposits. An important consideration to these strategies is the impact on the Company’s interest rate risk position, as some of its wholesale funding was originally borrowed to help strengthen the Company’s net interest income in rising interest rate scenarios.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

PROVISION FOR LOAN/LEASE LOSSES

The provision is established based on a number of factors, including the Company’s historical loss experience, delinquencies and charge-off trends, the local and national economy and risk associated with the loans/leases in the portfolio as described in more detail in the “Critical Accounting Policies” section.

The provision totaled $1.0 million for the second quarter of 2014, which was down $92 thousand from the prior quarter, and down $518 thousand from the second quarter of 2013. The provision totaled $2.1 million for the first half of 2014, compared to $2.6 million for the first half of 2013. The Company had net charge-offs of $588 thousand for the second quarter of 2014 which, when coupled with the provision of $1.0 million, increased the Company’s allowance to $23.1 million at June 30, 2014. As of June 30, 2014, the Company’s allowance to total loans/leases was 1.49%, which was down from 1.52% at March 31, 2014, and up from 1.38% at June 30, 2013.

A more detailed discussion of the Company’s allowance can be found in the “Financial Condition” section of this report.

NONINTEREST INCOME

The following tables set forth the various categories of noninterest income for the three and six months ended June 30, 2014 and 2013.

	Three Months Ended
	June 30, 2014			June 30, 2013			$ Change			% Change
Trust department fees	$	1,444,414		$	1,197,181		$	247,233			20.7	%
Investment advisory and management fees		710,858			695,094			15,764			2.3
Deposit service fees		1,091,923			1,054,223			37,700			3.6
Gains on sales of residential real estate loans		132,971			246,621			(113,650	)		(46.1	)
Gains on sales of government guaranteed portions of loans		508,168			765,738			(257,570	)		(33.6	)
Earnings on bank-owned life insurance		388,672			423,883			(35,211	)		(8.3	)
Subtotal	$	4,277,006		$	4,382,740		$	(105,734	)		(2.4	)
Losses on other real estate owned, net		(126,657	)		(83,339	)		(43,318	)		52.0
Securities gains		571			16,460			(15,889	)		(96.5	)
Bargain purchase gain on Community National acquisition		-			1,841,385			(1,841,385	)		(100.0	)
Other		1,193,293			791,510			401,783			50.8
Total noninterest income	$	5,344,213		$	6,948,756		$	(1,604,543	)		(23.1	)%

	Six Months Ended
	June 30, 2014			June 30, 2013			$ Change			% Change
Trust department fees	$	2,944,756		$	2,236,851		$	707,905			31.6	%
Investment advisory and management fees		1,359,850			1,304,435			55,415			4.2
Deposit service fees		2,137,808			1,962,046			175,762			9.0
Gains on sales of residential real estate loans		196,458			537,772			(341,314	)		(63.5	)
Gains on sales of government guaranteed portions of loans		702,187			1,610,962			(908,775	)		(56.4	)
Earnings on bank-owned life insurance		842,836			862,570			(19,734	)		(2.3	)
Subtotal	$	8,183,895		$	8,514,636		$	(330,741	)		(3.9	)
Losses on other real estate owned, net		(144,705	)		(529,969	)		385,264			(72.7	)
Securities gains		21,196			16,460			4,736			28.8
Bargain purchase gain on Community National acquisition		-			1,841,385			(1,841,385	)		(100.0	)
Other		2,030,668			2,310,273			(279,605	)		(12.1	)
Total noninterest income	$	10,091,054		$	12,152,785		$	(2,061,731	)		(17.0	)%

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

Trust department fees continue to be a significant contributor to noninterest income. Trust department fees grew 21% from the second quarter of 2013 to the second quarter of 2014, and grew 32% from the first half of 2013 to the first half of 2014. Part of the increase stems from the addition of CNB’s trust department, which recognized $253 thousand of trust department fees for the second quarter of 2014 and $521 thousand of trust department fees for the first half of 2014. The majority of the trust department fees are determined based on the value of the investments within the managed trusts. As markets have strengthened with the national economy’s continued recovery from recession, the Company’s fee income has experienced similar growth. Additionally, the Company has been successful in organically expanding its customer base at its legacy charters, which has helped drive the recent increases in fee income.

In recent years, the Company has placed a stronger emphasis on growing its investment advisory and management services. Part of this initiative has been to restructure the Company’s Wealth Management Division to allow for more efficient delivery of products and services through selective additions of talent as well as the leverage of and collaboration among existing resources (including the aforementioned trust department). Fee income for investment advisory and management services grew 2% comparing the second quarter of 2014 to the same period of 2013, and grew 4% comparing the first half of 2014 to the first half of 2013. Similar to trust department fees, these fees are largely determined based on the value of the investments managed. Continued expansion of the customer base in the Company’s legacy markets has helped drive the recent increases in fee income. CNB did not provide investment advisory and management services; however, the Company is in the process of leveraging its existing infrastructure to efficiently offer these services in the communities previously served by CNB.

As management focuses on growing fee income, expanding market share in trust and investment advisory services across all of the Company’s markets will continue to be a primary strategic focus.

Deposit service fees expanded 4% comparing the second quarter of 2014 to the same period in 2013, and expanded 9% comparing the first half of 2014 to the same period in 2013. Most of this growth is attributable to the acquisition of CNB and its deposit portfolio. Additionally, the Company continues its emphasis on shifting the mix of deposits from brokered and retail time deposits to non-maturity demand deposits across all its markets. With this shift in mix, the Company has increased the number of demand deposit accounts, which tend to be lower in interest cost and higher in service fees. The Company plans to continue this shift in mix and to further focus on growing deposit service fees.

Gains on sales of residential real estate loans fell 46% comparing the second quarter of 2014 to the second quarter of 2013, and fell 64% when comparing the first half of 2014 to the same period in 2013. With the sustained historically low interest rate environment, refinancing activity has slowed as many of the Company’s existing and prospective customers have already executed a refinancing.

Since the first quarter of 2012, the Company’s average quarterly gains on sales of government guaranteed portions of loans has been $392 thousand. The Company’s gains for the second quarter of 2014 totaled $508 thousand, which was 30% greater than the quarterly average since 2012. Sales activity for government guaranteed portions of loans tends to fluctuate depending on the demand for small business loans that fit the criteria for the government guarantee. Further, some of the transactions can be large and, as the gain is determined as a percentage of the guaranteed amount, the resulting gain on sale can be large. Lastly, a strategy for improved pricing is packaging loans together for sale. From time to time, the Company may execute on this strategy, which may delay the gains on sales of some loans to achieve better pricing. Despite the fluctuation, this remains a core strategy for the Company and the pipelines are active.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

During the first quarter of 2013, the Company wrote down one existing individual other real estate owned (“OREO”) property by $463 thousand as a result of a further decline in appraised value. Management continues to proactively manage its OREO portfolio in an effort to sell the properties timely at minimal loss, as evidenced by the minimal losses recognized thus far in 2014.

In accordance with acquisition accounting rules, the Company recognized a bargain purchase gain of $1.8 million in recording the acquisition of Community National during the second quarter of 2013.

The following table sets forth the various categories of other noninterest income for the three and six months ended June 30, 2014 and 2013.

	Three Months Ended
	June 30, 2014		June 30, 2013		$ Change		% Change
Debit card fees	$	280,800	$	257,200	$	23,600		9.2	%
Correspondent banking fees		218,502		163,494		55,008		33.6
Participation service fees on commercial loan participations		208,007		182,144		25,863		14.2
Income earned on other real estate owned		196,858		3,300		193,558		5,865.4
Credit card issuing fees, net of processing costs		91,045		85,017		6,028		7.1
Gain on the disposal of leased assets		70,815		1,447		69,368		4,793.9
Miscellaneous		127,266		98,908		28,358		28.7
Other noninterest income	$	1,193,293	$	791,510	$	401,783		50.8	%

	Six Months Ended
	June 30, 2014		June 30, 2013		$ Change			% Change
Debit card fees	$	511,405	$	487,100	$	24,305			5.0	%
Correspondent banking fees		450,647		321,605		129,042			40.1
Participation service fees on commercial loan participations		414,201		349,470		64,731			18.5
Income earned on other real estate owned		231,044		3,300		227,744			6,901.3
Credit card issuing fees, net of processing costs		182,383		134,971		47,412			35.1
Gain on the disposal of leased assets		19,223		42,257		(23,034	)		(54.5	)
Fees on interest rate swaps on commercial loans		62,000		6,720		55,280			822.6
Gain on sale of credit card loan portfolio		-		495,405		(495,405	)		(100.0	)
Gain on sale of credit card issuing operations		-		355,268		(355,268	)		(100.0	)
Miscellaneous		159,765		114,177		45,588			39.9
Other noninterest income	$	2,030,668	$	2,310,273	$	(279,605	)		(12.1	)%

Debit card fees are the interchange fees paid on certain debit card customer transactions. The debit card fees increased 9% comparing the second quarter of 2014 to the second quarter of 2013, and increased 5% comparing the first half of 2014 to the first half of 2013. As an opportunity to maximize fees, the Company’s legacy charters offer a deposit product with a modest increased interest rate that incentivizes debit card activity. Offering a similar product in the Company’s newest markets, Waterloo and Cedar Falls, Iowa, is currently under strategic review.

Correspondent banking fees increased 34% comparing the second quarter of 2014 to the second quarter of 2013, and increased 40% comparing the first half of 2014 to the first half of 2013. Correspondent banking continues to be a core strategy for the Company, as this line of business provides a high level of noninterest bearing deposits that can be used to fund additional loan growth as well as a steady source of fee income.

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Participation service fees on commercial loan participations represent fees paid annually to the Company by the participant(s) to cover servicing expenses incurred by the Company. The fee is generally 25 basis points of the participated loan amount. Additionally, the Company receives a mandated 1% servicing fee on the sold portion of government guaranteed loans. Participation service fees grew 14% comparing the second quarter of 2014 to the second quarter of 2013, and grew 19% comparing the first half of 2014 to the first half 2013. A portion of this growth is the result of the acquisition of CNB’s participated loan portfolio as well as organic growth of commercial loan participations across the Company’s legacy charters.

Income earned on other real estate owned is comprised mostly of rental income on properties that the Company has repossessed. In accordance with accounting rules, all revenues recognized and expenses incurred from these types of properties must be accounted for on a gross basis; therefore, the increased revenue helps to offset holding expenses related to maintaining the properties until they are sold.

In recent years, as a result of the sustained historically low interest rate environment, CRBT introduced the execution of interest rate swaps on select commercial loans. The interest rate swaps allow the commercial borrowers to pay a fixed interest rate while CRBT receives a variable interest rate as well as an upfront fee dependent upon the pricing. Management believes that these swaps help position CRBT more favorably for rising rate environments. Management will continue to review opportunities to execute these swaps at all of its subsidiary banks as the circumstances are appropriate for the borrower and the Company.

During the first quarter of 2013, QCBT sold its credit card loan portfolio for a pre-tax gain on sale of $495 thousand. In addition, QCBT sold its credit card issuing operations to the same purchaser for a pre-tax gain on sale of $355 thousand. 

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

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NONINTEREST EXPENSE

The following tables set forth the various categories of noninterest expense for the three and six months ended June, 2014 and 2013.

	Three Months Ended
	June 30, 2014		June 30, 2013		$ Change			% Change
Salaries and employee benefits	$	9,922,191	$	9,186,233	$	735,958			8.0	%
Occupancy and equipment expense		1,838,971		1,586,841		252,130			15.9
Professional and data processing fees		1,403,915		1,438,753		(34,838	)		(2.4	)
FDIC and other insurance		695,365		627,390		67,975			10.8
Loan/lease expense		377,492		251,868		125,624			49.9
Advertising and marketing		501,548		412,041		89,507			21.7
Postage and telephone		258,121		257,611		510			0.2
Stationery and supplies		145,635		150,718		(5,083	)		(3.4	)
Bank service charges		324,397		284,345		40,052			14.1
Subtotal	$	15,467,635	$	14,195,800	$	1,271,835			9.0
Acquisition and data conversion costs		-		432,326		(432,326	)		(100.0	)
Other		638,894		606,223		32,671			5.4
Total noninterest expense	$	16,106,529	$	15,234,349	$	872,180			5.7	%

	Six Months Ended
	June 30, 2014		June 30, 2013		$ Change			% Change
Salaries and employee benefits	$	19,940,109	$	17,928,916	$	2,011,193			11.2	%
Occupancy and equipment expense		3,733,259		3,015,711		717,548			23.8
Professional and data processing fees		2,988,321		2,578,814		409,507			15.9
FDIC and other insurance		1,410,115		1,183,301		226,814			19.2
Loan/lease expense		723,128		496,959		226,169			45.5
Advertising and marketing		839,135		676,609		162,526			24.0
Postage and telephone		548,796		476,302		72,494			15.2
Stationery and supplies		297,386		261,388		35,998			13.8
Bank service charges		622,429		559,840		62,589			11.2
Subtotal	$	31,102,678	$	27,177,840	$	3,924,838			14.4
Acquisition and data conversion costs		-		788,904		(788,904	)		(100.0	)
Other		1,144,271		1,226,105		(81,834	)		(6.7	)
Total noninterest expense	$	32,246,949	$	29,192,849	$	3,054,100			10.5	%

Management places a strong emphasis on overall cost containment and is committed to improving the Company’s general efficiency. The addition of CNB’s cost structure impacted the Company’s noninterest expenses. Management executed on its integration plan for CNB over the second half of 2013 to help increase efficiency and realize cost savings.

Salaries and employee benefits, which is the largest component of noninterest expense, increased from the second quarter of 2013 to the second quarter of 2014 by 8%. This increase was largely the result of:

● The addition of CNB’s cost structure.

● Customary annual salary and benefits increases for the majority of the Company’s employee base in 2014.

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● Continued increases in health insurance-related employee benefits for the majority of the Company’s employee base.

● Higher accrued incentive compensation based on improved financial performance for the first six months of 2014.

Occupancy and equipment expense increased for the year to date with the addition of CNB’s branch network. Additionally, throughout 2013, the Company purchased additional technology for enhanced customer service and for improved fraud detection and prevention systems.

Professional and data processing fees increased from the prior year due to the addition of CNB’s cost structure. In addition, professional and data processing fees can fluctuate depending on certain one-time project costs. Management will continue to focus on minimizing these one-time costs and driving those recurring costs down through contract renegotiation or managed reduction in activity where costs are determined on a usage basis.

FDIC and other insurance expense has generally fallen over the past several years since the FDIC modified its assessment calculation to more closely align with bank performance and risk. The increase from the prior year was primarily attributable to the addition of CNB’s assets, as well as growth at the three legacy charters.

Loan/lease expense increased 50% comparing the second quarter of 2014 to the same quarter of 2013, and increased 46% comparing the first half of 2014 to the same period of 2013. Some of the increase was the result of the addition of CNB’s cost structure. In addition, the Company incurred elevated levels of expense at the legacy banks for certain existing nonperforming loans as workouts progressed. Generally, loan/lease expense has a direct relationship with the level of nonperforming loans/leases; however, it may deviate depending upon the individual nonperforming loans/leases. Management expects these historically elevated levels of expense to continue to decline in line with the declining trend in nonperforming loans/leases. Additionally, a portion of these expenses are offset by the increase in income earned on other real estate owned, as the income and expense related to repossessed properties must be recognized on a gross basis.

The Company incurred additional expenses for advertising and marketing compared to the prior year. Most of the increase was the addition of CNB’s advertising and marketing costs, including the cost of rebranding CNB to Community Bank & Trust.

Bank service charges, which include costs incurred to provide services to QCBT’s correspondent banking customer portfolio, have increased over the past several quarters. The increase is due, in large part, to the success QCBT has had in growing its correspondent banking customer portfolio over recent years. Moreover, the addition of CNB’s items processing has added additional expense in this category.

With the acquisition of CNB on May 13, 2013, the Company incurred acquisition costs totaling $432 thousand for the second quarter of 2013 and $789 thousand for the first half of 2013 as the Company incurred professional fees (legal, investment banking, and accounting) in preparation for the closing of the acquisition. In accordance with generally accepted accounting principles, the Company expensed these costs as incurred.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

INCOME TAXES

The provision for income taxes totaled $1.2 million, or an effective tax rate of 23%, for the second quarter of 2014 compared to $1.9 million, or an effective tax rate of 31%, for the same quarter of 2013. For the first half of 2014, the provision for income taxes totaled $1.7 million, or an effective tax rate of 17% compared to $3.0 million, or an effective tax rate of 29% for the same period of 2013. The decline in effective tax rate was partly the result of continued growth in nontaxable income from increased investments in tax-exempt municipal securities, as the Company grew its portfolio of tax-exempt municipal securities by 41% from June 30, 2013 to June 30, 2014. The growth in nontaxable income outpaced the growth in taxable income which helped to reduce the effective tax rate. Additionally, the Company recognized a one-time tax benefit in the first quarter of 2014 of $381 thousand as a result of the finalization of the tax issues related to the Community National acquisition following the filing of the acquired entity’s final tax returns.

FINANCIAL CONDITION

Following is a table that represents the major categories of the Company’s balance sheet.

	As of
	June 30, 2014					March 31, 2014					December 31, 2013					June 30, 2013
	(dollars in thousands)
	Amount		%			Amount		%			Amount		%			Amount		%
Cash, federal funds sold, and interest-bearing deposits	$	113,569		5	%	$	111,403		5	%	$	114,431		5	%	$	95,557		4	%
Securities		682,122		28	%		707,107		29	%		697,210		29	%		703,467		29	%
Net loans/leases		1,526,301		62	%		1,469,926		61	%		1,438,832		60	%		1,509,570		62	%
Other assets		142,847		5	%		137,883		5	%		144,480		6	%		138,177		5	%
Total assets	$	2,464,839		100	%	$	2,426,319		100	%	$	2,394,953		100	%	$	2,446,771		100	%
Total deposits	$	1,677,368		69	%	$	1,671,893		69	%	$	1,646,991		68	%	$	1,716,780		70	%
Total borrowings		619,031		25	%		583,843		24	%		563,381		24	%		549,990		22	%
Other liabilities		33,797		1	%		29,226		1	%		37,004		2	%		34,555		1	%
Total stockholders' equity		134,643		5	%		141,357		6	%		147,577		6	%		145,446		6	%
Total liabilities and stockholders' equity	$	2,464,839		100	%	$	2,426,319		100	%	$	2,394,953		100	%	$	2,446,771		100	%

During the second quarter of 2014, the Company’s total assets grew $38.5 million, or 2%, to a total of $2.46 billion. Net loans/leases grew $56.4 million, or 4%, while securities decreased $25.0 million, or 4%. A large portion of the loan growth was funded through the sale of securities. The remaining growth was funded with short-term borrowings.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

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INVESTMENT SECURITIES. The composition of the Company’s securities portfolio is managed to meet liquidity needs while prioritizing the impact on the Company’s asset-liability position and maximizing return. With the strong growth in deposits more than offsetting the pace of loan growth over the past several years, the Company has grown and diversified its securities portfolio, including increasing the portfolio of agency-sponsored mortgage-backed securities as well as more than tripling the portfolio of tax-exempt municipal securities. Of the latter, the large majority are located in the Midwest with some in or near the Company’s existing markets and require a thorough underwriting process before investment. As the portfolio has grown over recent years, management has elevated its focus on maximizing return while minimizing credit and interest rate risk. Additionally, management will continue to diversify the portfolio with further growth strictly dictated by the pace of growth in deposits and loans. Ideally, management expects to fund future loan growth partially with cashflow from the securities portfolio (calls and maturities of government sponsored agencies, paydowns on residential mortgage-backed securities, and/or targeted sales of securities that meet certain criteria as defined by management).

Following is a breakdown of the Company’s securities portfolio by type, the percentage of unrealized gains (losses) to carrying value on the total portfolio, and the portfolio duration:

	As of
	June 30, 2014						December 31, 2013						June 30, 2013
	Amount			%			Amount			%			Amount			%
	(dollars in thousands)
U.S. govt. sponsored agency securities	$	325,620			48	%	$	356,473			51	%	$	380,916			54	%
Municipal securities		199,595			29	%		180,361			26	%		141,381			21	%
Residential mortgage-backed and related securities		153,895			23	%		157,429			23	%		178,546			25	%
Other securities		3,012			0	%		2,947			0	%		2,624			0	%
	$	682,122			100	%	$	697,210			100	%	$	703,467			100	%
As a % of Total Assets		27.67	%					29.11	%					28.75	%
Net Unrealized Gains/(Losses) as a % of Amortized Cost		-1.03	%					-4.02	%					-2.88	%
Duration (in years)		4.4						4.7						4.1

With the increase in long-term interest rates during the middle of 2013, the Company’s securities portfolio shifted from a net unrealized gain position to a net unrealized loss position. Management expected this shift to occur with the increase in long-term interest rates. Management performs an evaluation of the portfolio quarterly to understand the current market value as well as projections of market value in a variety of rising and falling interest rate scenarios. In addition, management has evaluated those securities with an unrealized loss position to determine whether the loss is derived from credit deterioration or the movement in interest rates. The evaluation determined that there were no securities with other-than-temporary impairment. See the “Critical Accounting Policies” section for further discussion on this evaluation.

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The duration of the securities portfolio has lengthened over the recent years for two reasons:

● A portion of the government-sponsored agency securities contain call options at the discretion of the issuer whereby the issuer can call the security at par at certain times which vary by individual security. With the sharp increase in longer-term rates in 2013, the duration of these callable agency securities lengthened as the likelihood of a call became less likely.

● The increased investment in tax-exempt municipal securities which tend to be longer term (average maturity is approximately 7 years). Management understands that this extended the duration of its securities portfolio and continually evaluates the combined benefit of increased interest income and reduced effective income tax rate and the impact on interest rate risk.

The Company has not invested in commercial mortgage-backed securities or pooled trust preferred securities. Additionally, the Company has not invested in the types of securities subject to the Volcker Rule (a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act, known as the “Dodd-Frank Act”).

See Note 2 to the Consolidated Financial Statements for additional information regarding the Company’s investment securities.

LOANS/LEASES. Total loans/leases grew 4% during the second quarter of 2014, and 6% over the first half of 2014. Over the past several quarters, the Company has been successful in shifting the mix of its commercial loan portfolio by adding more commercial and industrial loans, owner-occupied commercial real estate loans, and leases and fewer non owner-occupied commercial real estate and construction loans. The addition of CNB’s portfolio helped maintain this shift in mix as CNB’s portfolio mix was similar to the Company’s three legacy banks. The mix of the loan/lease types within the Company’s loan/lease portfolio is presented in the following table.

	As of
	June 30, 2014						December 31, 2013						June 30, 2013
	Amount			%			Amount			%			Amount			%
	(dollars in thousands)
Commercial and industrial loans	$	480,494			31	%	$	431,688			30	%	$	470,416			31	%
Commercial real estate loans		683,376			44	%		671,753			46	%		724,006			47	%
Direct financing leases		155,004			10	%		128,902			9	%		114,755			8	%
Residential real estate loans		153,200			10	%		147,356			10	%		143,093			9	%
Installment and other consumer loans		71,443			5	%		76,034			5	%		74,569			5	%
Total loans/leases	$	1,543,517			100	%	$	1,455,733			100	%	$	1,526,839			100	%
Plus deferred loan/lease origination costs, net of fees		5,851						4,547						3,887
Less allowance for estimated losses on loans/leases		(23,067	)					(21,448	)					(21,156	)
Net loans/leases	$	1,526,301					$	1,438,832					$	1,509,570

As commercial real estate loans are the largest portfolio segment, management places a strong emphasis on monitoring the composition of the Company’s commercial real estate loan portfolio. Management tracks the level of owner-occupied commercial real estate loans versus non owner-occupied loans. Owner-occupied loans are generally considered to have less risk. As of June 30, 2014 and December 31, 2013, approximately 36% and 39%, respectively, of the commercial real estate loan portfolio was owner-occupied.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

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Following is a listing of significant industries within the Company’s commercial real estate loan portfolio as of June 30, 2014 and December 31, 2013:

	As of June 30,					As of December 31,
	2014					2013
	Amount		%			Amount		%
	(dollars in thousands)
Lessors of Nonresidential Buildings	$	235,187		34	%	$	229,284		34	%
Lessors of Residential Buildings		65,237		10	%		64,659		10	%
Land Subdivision		28,234		4	%		29,117		4	%
Nursing Care Facilities		22,626		3	%		19,212		3	%
Hotels		20,207		3	%		20,975		3	%
Lessors of Other Real Estate Property		16,642		3	%		15,509		2	%
New Car Dealers		16,010		2	%		16,597		2	%
Other *		279,233		41	%		276,400		42	%
Total Commercial Real Estate Loans	$	683,376		100	%	$	671,753		100	%

* “Other” consists of all other industries. None of these had concentrations greater than $16.0 million, or 2.3% of total commercial real estate loans.

The Company’s residential real estate loan portfolio consists of the following:

● Certain loans that do not meet the criteria for sale into the secondary market. These are often structured as adjustable rate mortgages with maturities ranging from three to seven years to avoid the long-term interest rate risk.

● A limited amount of 15-year fixed rate residential real estate loans that met certain credit guidelines.

The remaining residential real estate loans originated by the Company were sold on the secondary market to avoid the interest rate risk associated with longer term fixed rate loans. Loans originated for this purpose were classified as held for sale and are included in the residential real estate loans above. In addition, the Company has not originated any subprime, Alt-A, no documentation, or stated income residential real estate loans throughout its history.

See Note 3 to the Consolidated Financial Statements for additional information regarding the Company’s loan/lease portfolio.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

ALLOWANCE FOR ESTIMATED LOSSES ON LOANS/LEASES. Changes in the allowance for the three and six months ended June 30, 2014 and 2013 are presented as follows:

	Three Months Ended						Six Months Ended
	June 30, 2014			June 30, 2013			June 30, 2014			June 30, 2013
	(dollars in thousands)						(dollars in thousands)
Balance, beginning	$	22,653		$	20,769		$	21,448		$	19,925
Provisions charged to expense		1,002			1,520			2,096			2,578
Loans/leases charged off		(676	)		(1,333	)		(755	)		(1,636	)
Recoveries on loans/leases previously charged off		88			200			278			289
Balance, ending	$	23,067		$	21,156		$	23,067		$	21,156

The allowance was $23.1 million at June 30, 2014 compared to $21.4 million at December 31, 2013 and $21.2 million at June 30, 2013. Net charge-offs of loans/leases for the second quarter and first half of 2014 was a modest 3 basis points of average loans/leases which compares favorably to 8 basis points of average loans/leases for the second quarter of 2013, and 10 basis points of average loans/leases for the first half of 2013. The allowance was determined based on factors that included the overall composition of the loan/lease portfolio, types of loans/leases, past loss experience, loan/lease delinquencies, potential substandard and doubtful credits, economic conditions, collateral positions, governmental guarantees and other factors that, in management’s judgment, deserved evaluation. To ensure that an adequate allowance was maintained, provisions were made based on a number of factors, including the increase in loans/leases and a detailed analysis of the loan/lease portfolio. The loan/lease portfolio is reviewed and analyzed monthly with specific detailed reviews completed on all loans risk-rated worse than “fair quality” and carrying aggregate exposure in excess of $100 thousand. The adequacy of the allowance is monitored by the loan review staff and reported to management and the board of directors.

The Company’s levels of criticized and classified loans are reported in the following table.

	As of
Internally Assigned Risk Rating *	June 30, 2014		December 31, 2013		June 30, 2013
	(dollars in thousands)
Special Mention (Rating 6)	$	34,306	$	24,572	$	28,728
Substandard (Rating 7)		53,409		43,508		57,895
Doubtful (Rating 8)		-		-		-
	$	87,715	$	68,080	$	86,623
Criticized Loans **	$	87,715	$	68,080	$	86,623
Classified Loans ***	$	53,409	$	43,508	$	57,895

* Amounts above include the government guaranteed portion, if any. For the calculation of allowance for estimated losses on loans/leases, the Company assigns internal risk ratings of Pass (Rating 2) for the government guaranteed portion.

** Criticized loans are defined as commercial and industrial and commercial real estate loans with internally assigned risk ratings of 6, 7, or 8, regardless of performance.

*** Classified loans are defined as commercial and industrial and commercial real estate loans with internally assigned risk ratings of 7 or 8, regardless of performance.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

The Company experienced some increase in criticized and classified loans during the first half of 2014, as compared to December 31, 2013, but this did not translate to an increase in nonperforming loans. Nonperforming loans/leases actually decreased $545 thousand, or 3%, during the same period. The ratio of the Company’s performing delinquent loans/leases (as defined as those past due 30 days or more and accruing) to total loans/leases has improved over the first half of 2014 (39 basis points of total loans/leases at June 30, 2014, which is down from 53 basis points of total loans/leases at December 31, 2013). The Company continues its strong focus on improving credit quality, including close management of criticized and classified loans as well as performing delinquent loans/leases, in an effort to limit translation to impairment and growth in nonperforming loans/leases.

The following table summarizes the trend in the allowance as a percentage of gross loans/leases and as a percentage of nonperforming loans/leases.

	As of
	June 30, 2014			December 31, 2013			June 30, 2013
Allowance / Gross Loans/Leases		1.49	%		1.47	%		1.38	%
Allowance / Nonperforming Loans/Leases *		115.68	%		104.70	%		70.61	%

*Nonperforming loan/leases consist of nonaccrual loans/leases, accruing loans/leases past due 90 days or more, and accruing troubled debt restructurings.

In accordance with generally accepted accounting principles for acquisition accounting, the acquired CNB loans were recorded at market value; therefore, there was no allowance associated with CNB’s loans at acquisition which caused a drop in the Company’s allowance to total loans/leases percentage during the second quarter of 2013. This ratio has steadily increased since then. Further, the Company’s allowance to total nonperforming loans/leases was 116% at June 30, 2014 which was up from all prior periods presented in the table above.

Although management believes that the allowance at June 30, 2014 was at a level adequate to absorb losses on existing loans/leases, there can be no assurance that such losses will not exceed the estimated amounts or that the Company will not be required to make additional provisions in the future. Unpredictable future events could adversely affect cash flows for both commercial and individual borrowers, which could cause the Company to experience increases in problem assets, delinquencies and losses on loans/leases, and require further increases in the provision. Asset quality is a priority for the Company and its subsidiaries. The ability to grow profitably is in part dependent upon the ability to maintain that quality. The Company continually focuses efforts at its subsidiary banks and leasing company with the intention to improve the overall quality of the Company’s loan/lease portfolio.

See Note 3 to the Consolidated Financial Statements for additional information regarding the Company’s allowance for estimated losses on loans/leases.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

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NONPERFORMING ASSETS. The table below presents the amounts of nonperforming assets.

	As of June 30,			As of December 31,			As of June 30,			As of December 31,
	2014			2013			2013			2012
	(dollars in thousands)
Nonaccrual loans/leases (1) (2)	$	17,652		$	17,878		$	27,782		$	17,932
Accruing loans/leases past due 90 days or more		104			84			3			159
Troubled debt restructurings - accruing		2,184			2,523			2,178			7,300
Total nonperforming loans/leases		19,940			20,485			29,963			25,391
Other real estate owned		10,951			9,729			3,860			3,955
Other repossessed assets		290			346			244			212
Total nonperforming assets	$	31,181		$	30,560		$	34,067		$	29,558
Nonperforming loans/leases to total loans/leases		1.29	%		1.40	%		1.96	%		1.97	%
Nonperforming assets to total loans/leases plus reposessed property		2.00	%		2.08	%		2.22	%		2.29	%
Nonperforming assets to total assets		1.27	%		1.28	%		1.39	%		1.41	%
Texas ratio (3)		20.23	%		18.43	%		21.15	%		18.68	%

(1) Includes government guaranteed portion of loans, as applicable.

(2) Includes troubled debt restructurings of $9.8 million at June 30, 2014, $10.9 million at December 31, 2013, $7.7 million at June 30, 2013, and $5.7 million at December 31, 2012.

(3) Texas Ratio = Nonperforming Assets (excluding Other Repossessed Assets) / Tangible Equity plus Allowance for Estimated Losses on Loans/Leases. Texas Ratio is a non-GAAP financial measure. Management included this ratio as this is considered by many investors and analysts to be a metric with which to analyze and evaluate asset quality. Other companies may calculate this ratio differently.

The large majority of the nonperforming assets consist of nonaccrual loans/leases, accruing troubled debt restructurings (“TDRs”), and OREO. For nonaccrual loans/leases and accruing TDRs, management has thoroughly reviewed these loans/leases and has provided specific allowances as appropriate. Additionally, a portion of several of the nonaccrual loans are guaranteed by the government. At June 30, 2014, government guaranteed amounts of nonaccrual loans totaled approximately $914 thousand, or 5% of the $17.7 million of total nonaccrual loans/leases. OREO is carried at the lower of carrying amount or fair value less costs to sell.

Nonperforming assets at June 30, 2014 were $31.2 million, which were up $621 thousand, or 2%, from December 31, 2013, and down $2.9 million, or 8%, from June 30, 2013. In addition, the ratio of nonperforming assets to total assets was 1.27% at June 30, 2014, which was down from 1.28% at December 31, 2013, and down from 1.39% at June 30, 2013. During the first half of 2014, the Company experienced fluctuations in the performance of several individual credits. Several of these credits experienced improved performance (sustained performance of accruing TDRs and payoffs of nonaccrual loans) and other isolated credits experienced degradation (new nonaccrual loans/leases and OREO).

The Company’s lending/leasing practices remain unchanged and asset quality remains a top priority for management.

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DEPOSITS. Deposits grew $5.5 million during the second quarter of 2014, mostly in short-term, low cost brokered time deposits. The table below presents the composition of the Company’s deposit portfolio.

	As of
	June 30, 2014					December 31, 2013					June 30, 2013
	(dollars in thousands)
	Amount		%			Amount		%			Amount		%
Noninterest bearing demand deposits	$	531,063		31	%	$	542,566		33	%	$	493,964		29	%
Interest bearing demand deposits		760,242		46	%		715,643		43	%		710,745		42	%
Time deposits		298,011		18	%		326,852		20	%		451,991		26	%
Brokered time deposits		88,052		5	%		61,930		4	%		60,080		3	%
	$	1,677,368		100	%	$	1,646,991		100	%	$	1,716,780		100	%

The Company has been successful in growing its noninterest bearing deposit portfolio over the past few years, growing average balances $74.7 million, or 15%, comparing the quarterly average for the second quarter of 2014 to the same period of 2013. Most of this growth continues to be derived from QCBT’s correspondent banking business. The continued strength of the noninterest bearing deposit portfolio has provided flexibility to manage down deposit pricing and reduce reliance on higher cost wholesale funds, which has helped drive down the Company’s interest expense.

BORROWINGS. The subsidiary banks offer short-term repurchase agreements to some of their significant customers. Also, the subsidiary banks purchase federal funds for short-term funding needs from the Federal Reserve Bank or from their correspondent banks. The table below presents the composition of the Company’s short-term borrowings.

	As of
	June 30, 2014		December 31, 2013		June 30, 2013
	(dollars in thousands)
Overnight repurchase agreements with customers	$	114,712	$	98,823	$	115,326
Federal funds purchased		89,610		50,470		41,860
	$	204,322	$	149,293	$	157,186

As a result of their memberships in either the Federal Home Loan Bank (“FHLB”) of Des Moines or Chicago, the subsidiary banks have the ability to borrow funds for short or long-term purposes under a variety of programs. FHLB advances are utilized for loan matching as a hedge against the possibility of rising interest rates, and when these advances provide a less costly or more readily available source of funds than customer deposits. FHLB advances decreased by $12.8 million, or 5%, during the second quarter of 2014.

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Other borrowings consist largely of structured repos which are utilized as an alternative funding source to FHLB advances and customer deposits. The table below presents the composition of the Company’s other borrowings.

	As of
	June 30, 2014		December 31, 2013		June 30, 2013
	(dollars in thousands)
Structured repos	$	130,000	$	130,000	$	130,000
Term note		18,800		9,800		10,000
364-day revolving note		-		-		-
Series A subordinated notes		2,653		2,648		2,644
	$	151,453	$	142,448	$	142,644

In June of 2014, the Company restructured its existing term debt ($8.8 million at the time of restructure which was the net remaining amount after the acquisition of CNB) and borrowed an additional $10.0 million of term debt to help assist with the final redemption of the Series F Preferred Stock. The term debt is secured by common stock of the Company’s subsidiary banks and has a 4-year term with principal and interest due quarterly. Interest is calculated at the effective LIBOR rate plus 3.00% per annum (3.23% at June 30, 2014). Additionally, the Company continued to maintain its $10.0 million revolving line of credit note. At June 30, 2014, the Company had not borrowed on this revolving credit note and had the full $10.0 million line available.

It is management’s intention to continue to reduce the reliance on wholesale funding, including FHLB advances, structured repos, and brokered time deposits. Replacement of this funding with core deposits helps to reduce interest expense as the wholesale funding tends to be higher funding cost. However, the Company may choose to utilize advances to supplement funding needs, as this is a way for the Company to effectively and efficiently manage interest rate risk. The table below presents the maturity schedule including weighted average cost for the Company’s combined wholesale funding portfolio.

	June 30, 2014				December 31, 2013
			Weighted				Weighted
			Average				Average
			Interest Rate				Interest Rate
Maturity:	Amount Due		at Quarter-End		Amount Due		at Year-End
Year ending December 31:	(dollar amounts in thousands)
2014	$	118,123		0.55	$	110,521		1.24
2015		46,000		1.82		41,000		2.00
2016		48,642		3.63		48,642		3.63
2017		48,145		3.17		43,075		3.43
2018		58,042		3.47		58,042		3.47
Thereafter		122,000		3.33		122,000		3.33
Total Wholesale Funding	$	440,952		2.46	$	423,280		2.72

During the first half of 2014, wholesale funding maturing in 2014 increased by $7.6 million. This is the net result of $20.3 million of maturities more than offset by the addition of $27.9 million in short-term, low cost FHLB advances and brokered time deposits.

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Importantly, a large portion of the Company’s FHLB advances and structured repos have putable options which allow the lender (FHLB or counterparty), at its discretion, to terminate the borrowing and require the subsidiary banks to repay at predetermined dates prior to the stated maturity.

STOCKHOLDERS’ EQUITY. The table below presents the composition of the Company’s stockholders’ equity, including the common and preferred equity components.

	As of
	June 30, 2014						December 31, 2013						June 30, 2013
	Amount			%			Amount			%			Amount			%
	(dollars in thousands)
Common stock	$	8,050					$	8,006					$	5,918
Additional paid in capital - common		60,999						60,360						38,406
Retained earnings		71,137						64,637						58,786
Accumulated other comprehensive income (loss)		(3,937	)					(13,644	)					(9,221	)
Less: Treasury stock		(1,606	)					(1,606	)					(1,606	)
Total common stockholders' equity		134,643			100	%		117,753			80	%		92,283			63	%
Preferred stock		-						30						55
Additional paid in capital - preferred		-						29,794						53,108
Total preferred stockholders' equity		-			0	%		29,824			20	%		53,163			37	%
Total stockholders' equity	$	134,643			100	%	$	147,577			100	%	$	145,446			100	%
Tangible common equity (TCE)* / total tangible assets (TA)		5.27	%					4.71	%					3.51	%
TCE/TA excluding accumulated other comprehensive income (loss)		5.43	%					5.29	%					3.89	%

*Tangible common equity is defined as total common stockholders’ equity excluding goodwill and other intangibles. This ratio is a non-GAAP financial measure. Management included this ratio as it is considered by many investors and analysts to be a metric with which to analyze and evaluate the equity composition. Other companies may calculate this ratio differently.

The following table presents the rollforward of stockholders’ equity for the three and six months ended June 30, 2014 and 2013, respectively.

	For the quarter ended June 30,						For the six months ended June 30,
	2014			2013			2014			2013
	(dollars in thousands)
Beginning balance	$	141,357		$	142,198		$	147,577		$	140,434
Net income		4,008			4,045			7,897			7,310
Other comprehensive income (loss), net of tax		4,476			(13,091	)		9,707			(13,928	)
Preferred and common cash dividends declared		(689	)		(1,040	)		(1,397	)		(1,852	)
Issuance of 834,715 shares of common stock for acquisition of CNB, net		-			13,017			-			13,017
Redemption of 15,000 shares of Series F Preferred Stock		-			-			(15,000	)		-
Redemption of 14,867 shares of Series F Preferred Stock		(14,824	)		-			(14,824	)		-
Other *		315			317			683			465
Ending balance	$	134,643		$	145,446		$	134,643		$	145,446

*Includes mostly common stock issued for options exercised and the employee stock purchase plans, as well as stock-based compensation.

With the final redemption of the remaining Series F Preferred Stock on June 30, 2014, the Company has completely retired all preferred stock and eliminated the associated dividend payment commitments. See Note 7 to the Consolidated Financial Statements for additional information regarding the Company’s final redemption of the Series F Preferred Stock.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

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LIQUIDITY AND CAPITAL RESOURCES

Liquidity measures the ability of the Company to meet maturing obligations and its existing commitments, to withstand fluctuations in deposit levels, to fund its operations, and to provide for customers’ credit needs. The Company monitors liquidity risk through contingency planning stress testing on a regular basis. The Company seeks to avoid over-concentration of funding sources and to establish and maintain contingent funding facilities that can be drawn upon if normal funding sources become unavailable. One source of liquidity is cash and short-term assets, such as interest-bearing deposits in other banks and federal funds sold, which averaged $100.2 million during the second quarter of 2014, $102.8 million during 2013 and $98.6 million during 2012. The Company’s on balance sheet liquidity position can fluctuate based on short-term activity in deposits and loans.

The subsidiary banks have a variety of sources of short-term liquidity available to them, including federal funds purchased from correspondent banks, FHLB advances, structured repos, brokered time deposits, lines of credit, borrowing at the Federal Reserve Discount Window, sales of securities available for sale, and loan/lease participations or sales. The Company also generates liquidity from the regular principal payments and prepayments made on its loan/lease portfolio, and on the regular monthly payments on its securities portfolio (both residential mortgage-backed securities and municipal securities). At June 30, 2014, the subsidiary banks had 33 lines of credit totaling $348.4 million, of which $18.9 million was secured and $329.5 million was unsecured. At June 30, 2014, $258.8 million was available as $89.6 million was utilized for short-term borrowing needs at the three banks. At December 31, 2013, the subsidiary banks had 33 lines of credit totaling $351.3 million, of which $26.8 million was secured and $324.5 million was unsecured. At December 31, 2013, $315.3 million was available as $36.0 million was utilized for short-term borrowing needs at QCBT. The Company has emphasized growing the number and amount of lines of credit in an effort to strengthen this contingent source of liquidity. Additionally, the Company maintains its $10.0 million secured revolving credit note with a variable interest rate and a maturity of June 24, 2015. At June 30, 2014, the Company had not borrowed on this revolving credit note and had the full amount available.

Investing activities used cash of $47.5 million during the first six months of 2014 compared to $117.1 million for the same period of 2013. Proceeds from calls, maturities, paydowns, and sales of securities were $66.2 million for the first six months of 2014 compared to $158.6 million for the same period of 2013. Purchases of securities used cash of $36.1 million for the first six months of 2014 compared to $238.5 million for the same period of 2013. The net increase in loans/leases used cash of $91.3 million for the first six months of 2014 compared to $51.7 million for the same period of 2013.

Financing activities provided cash of $54.8 million for the first six months of 2014 compared to $80.2 million for same period of 2013. Net increases in deposits totaled $30.4 million for the first six months of 2014 compared to $87.6 million for the same period of 2013. During the first half of 2014, the Company’s short-term borrowings increased $55.0 million. Also, during the first quarter of 2014, the Company partially redeemed its outstanding shares of Series F Preferred Stock totaling $15.0 million and then fully redeemed the remaining $14.8 million in the second quarter of 2014.

Total cash provided by operating activities was $7.0 million for the first six months of 2014 compared to $19.7 million for the same period of 2013.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

Throughout its history, the Company has secured additional capital through various resources, including the issuance of preferred stock (discussed above) and trust preferred securities. Trust preferred securities are reported on the Company’s balance sheet as liabilities, but currently qualify for treatment as regulatory capital.

The following table presents the details of the trust preferred securities issued and outstanding as of June 30, 2014.

Name	Date Issued	Amount Issued		Interest Rate	Interest Rate as of 6/30/2014			Interest Rate as of 12/31/2013
QCR Holdings Statutory Trust II	February 2004	$	12,372,000	2.85% over 3-month LIBOR		3.08	%		3.10	%
QCR Holdings Statutory Trust III	February 2004		8,248,000	2.85% over 3-month LIBOR		3.08	%		3.10	%
QCR Holdings Statutory Trust IV	May 2005		5,155,000	1.80% over 3-month LIBOR		2.03	%		2.04	%
QCR Holdings Statutory Trust V	February 2006		10,310,000	1.55% over 3-month LIBOR		1.78	%		1.79	%
Community National Statutory Trust II	September 2004		3,093,000	2.17% over 3-month LIBOR		2.40	%		2.42	%
Community National Statutory Trust III	March 2007		3,609,000	1.75% over 3-month LIBOR		1.98	%		1.99	%
		$	42,787,000	Weighted Average Rate		2.50	%		2.51	%

The Company assumed the trust preferred securities originally issued by Community National in connection with its acquisition in May 2013. As a result of acquisition accounting, the liabilities were recorded at fair value upon acquisition with the resulting discount being accreted as interest expense on a level yield basis over the expected term. The original discount totaled $2.6 million. As of June 30, 2014, the remaining discount was $2.4 million.

On June 30, 2014, the Company filed a universal shelf registration statement on Form S-3 with the Securities and Exchange Commission ("SEC"). This registration statement, declared effective by the SEC on July 14, 2014, will allow the Company to issue various types of securities, including common stock, preferred stock, debt securities or warrants, from time to time, up to an aggregate amount of $75.0 million. The specific terms and prices of the securities will be determined at the time of any future offering and described in a separate prospectus supplement, which would be filed with the SEC at the time of the particular offering, if any.

The Company (on a consolidated basis) and its subsidiary banks are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company and subsidiary banks’ financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the subsidiary banks must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the subsidiary banks to maintain minimum amounts and ratios (set forth in the following tables) of total and Tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets, each as defined by regulation. Management believes, as of June 30, 2014 and December 31, 2013, that the Company and the subsidiary banks met all capital adequacy requirements to which they were subject.

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Under the regulatory framework for prompt corrective action, to be categorized as “well capitalized,” an institution must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. The Company and the subsidiary banks’ actual capital amounts and ratios as of June 30, 2014 and December 31, 2013 are also presented in the following tables (dollars in thousands). As of June 30, 2014 and December 31, 2013, the subsidiary banks met the requirements to be “well capitalized”.

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of June 30, 2014:
Company:
Total risk-based capital	$	195,631		11.09	%	$	141,138	>	8.0	%	N/A		N/A
Tier 1 risk-based capital		170,665		9.67	%		70,569	>	4.0		N/A		N/A
Leverage ratio		170,665		7.06	%		96,747	>	4.0		N/A		N/A
Quad City Bank & Trust:
Total risk-based capital	$	101,756		11.59	%	$	70,261	>	8.0	%	$	87,826	>	10.00	%
Tier 1 risk-based capital		91,410		10.41	%		35,131	>	4.0			52,696	>	6.00	%
Leverage ratio		91,410		7.13	%		51,280	>	4.0			64,100	>	5.00	%
Cedar Rapids Bank & Trust:
Total risk-based capital	$	74,853		11.98	%	$	49,999	>	8.0	%	$	62,498	>	10.00	%
Tier 1 risk-based capital		67,028		10.72	%		24,999	>	4.0			37,499	>	6.00	%
Leverage ratio		67,028		8.27	%		32,414	>	4.0			40,517	>	5.00	%
Rockford Bank & Trust:
Total risk-based capital	$	34,805		12.73	%	$	21,875	>	8.0	%	$	27,343	>	10.00	%
Tier 1 risk-based capital		31,381		11.48	%		10,937	>	4.0			16,406	>	6.00	%
Leverage ratio		31,381		9.01	%		13,926	>	4.0			17,407	>	5.00	%

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FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
As of December 31, 2013:
Company:
Total risk-based capital	$	217,011		12.87	%	$	134,935	>	8.0	%	N/A		N/A
Tier 1 risk-based capital		193,044		11.45	%		67,468	>	4.0	%	N/A		N/A
Tier 1 leverage		193,044		7.96	%		97,029	>	4.0	%	N/A		N/A
Quad City Bank & Trust:
Total risk-based capital	$	101,168		12.25	%	$	66,049	>	8.0	%	$	82,562	>	10.00	%
Tier 1 risk-based capital		91,820		11.12	%		33,025	>	4.0			49,537	>	6.00	%
Tier 1 leverage		91,820		7.13	%		51,527	>	4.0			64,408	>	5.00	%
Cedar Rapids Bank & Trust:
Total risk-based capital	$	74,912		12.54	%	$	47,808	>	8.0	%	$	59,760	>	10.00	%
Tier 1 risk-based capital		67,432		11.28	%		23,904	>	4.0			35,856	>	6.00	%
Tier 1 leverage		67,432		8.78	%		30,736	>	4.0			38,420	>	5.00	%
Rockford Bank & Trust:
Total risk-based capital	$	38,778		14.59	%	$	21,263	>	8.0	%	$	26,579	>	10.00	%
Tier 1 risk-based capital		35,449		13.34	%		10,631	>	4.0			15,947	>	6.00	%
Tier 1 leverage		35,449		10.54	%		13,459	>	4.0			16,824	>	5.00	%

In July 2013, the U.S. federal banking authorities approved the implementation of the Basel III regulatory capital reforms and issued rules effecting certain changes required by the Dodd-Frank Act (the “Basel III Rules”).  The Basel III Rules are applicable to all U.S. banks that are subject to minimum capital requirements, as well as to bank and savings and loan holding companies other than “small bank holding companies” (generally bank holding companies with consolidated assets of less than $500 million).  The Basel III Rules not only increase most of the required minimum regulatory capital ratios, but they introduce a new Common Equity Tier 1 Capital ratio and the concept of a capital conservation buffer.  The Basel III Rules also expand the definition of capital as in effect currently by establishing criteria that instruments must meet to be considered Additional Tier 1 Capital (Tier 1 Capital in addition to Common Equity) and Tier 2 Capital.  A number of instruments that now qualify as Tier 1 Capital will not qualify, or their qualifications will change.  The Basel III Rules also permit smaller banking organizations (which includes the Company and its subsidiary banks) to retain, through a one-time election, the existing treatment for accumulated other comprehensive income, which currently does not affect regulatory capital.  The Basel III Rules have maintained the general structure of the current prompt corrective action framework, while incorporating the increased requirements. The prompt corrective action guidelines were also revised to add the Common Equity Tier 1 Capital ratio.  In order to be a “well-capitalized” depository institution under the new regime, a bank and holding company must maintain a Common Equity Tier 1 Capital ratio of 6.5% or more; a Tier 1 Capital ratio of 8% or more; a Total Capital ratio of 10% or more; and a leverage ratio of 5% or more.  Generally, financial institutions become subject to the new Basel III Rules on January 1, 2015.  Management is in the process of assessing the effect the Basel III Rules may have on the Company’s and the subsidiary banks’ capital positions and will monitor developments in this area. At present, management believes that its current capital structure and the execution of its existing capital plan will be more than sufficient to meet and exceed the revised regulatory capital ratios as required by the new Basel III Rules.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

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SPECIAL NOTE CONCERNING FORWARD-LOOKING STATEMENTS

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995. This document (including information incorporated by reference) contains, and future oral and written statements of the Company and its management may contain, forward-looking statements, within the meaning of such term in 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,” “bode,” “predict,” “suggest,” “project,” “appear,” “plan,” “intend,” “estimate,” “may,” “will,” “would,” “could,” “should,” “likely,” 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.

The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. The factors which could have a material adverse effect on the Company’s operations and future prospects are detailed in the “Risk Factors” section included under Item 1A of Part I of the Company’s Form 10-K. In addition to the risk factors described in that section, there are other factors that may impact any public company, including the Company, which could have a material adverse effect on the Company’s operations and future prospects of the Company and its subsidiaries.

These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

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QUANTITATIVE AND QUALITATVE DISCLOSURES ABOUT MARKET RISK

The Company, like other financial institutions, is subject to direct and indirect market risk. Direct market risk exists from changes in interest rates. The Company’s net income is dependent on its net interest income. Net interest income is susceptible to interest rate risk to the degree that interest-bearing liabilities mature or reprice on a different basis than interest-earning assets. When interest-bearing liabilities mature or reprice more quickly than interest-earning assets in a given period, a significant increase in market rates of interest could adversely affect net interest income. Similarly, when interest-earning assets mature or reprice more quickly than interest-bearing liabilities, falling interest rates could result in a decrease in net interest income.

In an attempt to manage the Company’s exposure to changes in interest rates, management monitors the Company’s interest rate risk. Each subsidiary bank has an asset/liability management committee of the board of directors that meets quarterly to review the bank’s interest rate risk position and profitability, and to make or recommend adjustments for consideration by the full board of each bank. Internal asset/liability management teams consisting of members of the subsidiary banks’ management meet weekly to manage the mix of assets and liabilities to maximize earnings and liquidity and minimize interest rate and other risks. Management also reviews the subsidiary banks’ securities portfolios, formulates investment strategies, and oversees the timing and implementation of transactions to assure attainment of the board's objectives in the most effective manner. Notwithstanding the Company’s interest rate risk management activities, the potential for changing interest rates is an uncertainty that can have an adverse effect on net income.

In adjusting the Company’s asset/liability position, the board of directors and management attempt to manage the Company’s interest rate risk while maintaining or enhancing net interest margins. At times, depending on the level of general interest rates, the relationship between long-term and short-term interest rates, market conditions and competitive factors, the board of directors and management may decide to increase the Company’s interest rate risk position somewhat in order to increase its net interest margin. The Company’s results of operations and net portfolio values remain vulnerable to increases in interest rates and to fluctuations in the difference between long-term and short-term interest rates.

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Item 3

QUANTITATIVE AND QUALITATVE DISCLOSURES ABOUT MARKET RISK

One method used to quantify interest rate risk is a short-term earnings at risk summary, which is a detailed and dynamic simulation model used to quantify the estimated exposure of net interest income to sustained interest rate changes. This simulation model captures the impact of changing interest rates on the interest income received and interest expense paid on all interest sensitive assets and liabilities reflected on the Company’s consolidated balance sheet. This sensitivity analysis demonstrates net interest income exposure annually over a five-year horizon, assuming no balance sheet growth and various interest rate scenarios including no change in rates; 200, 300, 400, and 500 basis point upward shifts; and a 100 basis point downward shift in interest rates, where interest-bearing assets and liabilities reprice at their earliest possible repricing date. The model assumes parallel and pro rata shifts in interest rates over a twelve-month period for the 200 basis point upward shift and 100 basis point downward shift. For the 400 basis point upward shift, the model assumes a parallel and pro rata shift in interest rates over a twenty-four month period. For the 500 basis point upward shift, the model assumes a flattening and pro rata shift in interest rates over a twelve-month period where the short-end of the yield curve shifts upward greater than the long-end of the yield curve. Further, in recent years, the Company added additional interest rate scenarios where interest rates experience a parallel and instantaneous shift upward 100, 200, 300, and 400 basis points and a parallel and instantaneous shift downward 100 basis points. The Company will run additional interest rate scenarios on an as-needed basis. The asset/liability management committees of the subsidiary bank boards of directors have established policy limits of a 10% decline in net interest income for the 200 basis point upward parallel shift and the 100 basis point downward parallel shift. For the 300 basis point upward shock, the established policy limit has been increased to 25% decline in net interest income. The increased policy limit is appropriate as the shock scenario is extreme and unlikely and warrants a higher limit than the more realistic and traditional parallel/pro-rata shift scenarios.

Application of the simulation model analysis for select interest rate scenarios at the most recent quarter-end available is presented in the following table:

				NET INTEREST INCOME EXPOSURE in YEAR 1
INTEREST RATE SCENARIO	POLICY LIMIT			As of March 31, 2014			As of December 31, 2013			As of December 31, 2012
100 basis point downward shift		-10.0	%		-1.0	%		-1.0	%		-1.5	%
200 basis point upward shift		-10.0	%		-4.6	%		-4.8	%		-0.9	%
300 basis point upward shock		-25.0	%		-11.4	%		-11.0	%		0.8	%

The simulation is within the board-established policy limits for all three scenarios. Additionally, for all of the various interest rate scenarios modeled and measured by management (as described above), the results at March 31, 2014 (the most recent quarter available) were within established risk tolerances as established by policy or by best practice (if the interest rate scenario didn’t have a specific policy limit).

63

Part I

Item 3

QUANTITATIVE AND QUALITATVE DISCLOSURES ABOUT MARKET RISK

In the second quarter of 2014, the Company executed two interest rate cap transactions, each with a notional value of $15.0 million, for a total of $30.0 million. The initial cost (prepaid premium) of the interest rate caps totaled $2.1 million. This amount was recorded in the Other Assets section of the balance sheet. This asset will be amortized to interest expense according to a predetermined schedule and will also be adjusted to fair value on a recurring basis. The change in fair value will flow through Accumulated Other Comprehensive Income and the derivative transaction will be tested for effectiveness according to cash flow hedge accounting standards. The interest rate caps purchased will essentially set a ceiling to the interest rate paid on the $30.0 million of short-term FHLB advances that are being hedged, minimizing the interest rate risk associated with rising interest rates. The Company will continue to analyze and evaluate similar transactions as an alternative and cost effective way to mitigate interest rate risk.

Interest rate risk is considered to be one of the most significant market risks affecting the Company. For that reason, the Company engages the assistance of a national consulting firm and its risk management system to monitor and control the Company’s interest rate risk exposure. Other types of market risk, such as foreign currency exchange rate risk and commodity price risk, do not arise in the normal course of the Company’s business activities.

64

Part I

Item 4

CONTROL AND PROCEDURES

Evaluation of disclosure controls and procedures. An evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of June 30, 2014. Based on that evaluation, the Company’s management, including the Chief Executive Officer and Chief Financial Officer, concluded that the Company’s disclosure controls and procedures were effective, as of the end of the period covered by this report, to ensure that information required to be disclosed in the reports filed and submitted under the Exchange Act was recorded, processed, summarized and reported as and when required.

Changes in Internal Control over Financial Reporting. There have been no significant changes to the Company’s internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

In May 2013, the Committee of Sponsoring Organization of the Treadway Commission (“COSO”) released an updated version of its Internal Control – Integrated Framework. The updated version supersedes the 1992 version effective December 15, 2014. The Company’s management has evaluated the updated COSO framework and will use the new framework to evaluate the adequacy of their internal control over financial reporting for the year ending December 31, 2014. The Company’s management expects no material changes to existing internal controls over financial reporting as a result of using the updated framework.

65

Part II

QCR HOLDINGS, INC. AND SUBSIDIARIES

PART II - OTHER INFORMATION

Item 1	Legal Proceedings
	There are no material pending legal proceedings to which the Company or any of its subsidiaries is a party other than ordinary routine litigation incidental to their respective businesses.
Item 1A	Risk Factors
	There have been no material changes in the risk factors applicable to the Company from those disclosed in Part I, Item 1.A. “Risk Factors,” in the Company’s 2013 Annual Report on Form 10-K. Please refer to that section of the Company’s Form 10-K for disclosures regarding the risks and uncertainties related to the Company’s business.
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds
	None
Item 3	Defaults Upon Senior Securities
	None
Item 4	Mine Safety Disclosures
	Not applicable
Item 5	Other Information
	None

66

Part II

QCR HOLDINGS, INC. AND SUBSIDIARIES

PART II - OTHER INFORMATION - continued

Item 6           Exhibits

31.1 Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a).

31.2 Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a).

32.1 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101 Interactive data files pursuant to Rule 405 of Regulation S-T: (i) Consolidated Balance Sheets as of June 30, 2014 and December 31, 2013; (ii) Consolidated Statements of Income for the three and six months ended June 30, 2014 and June 30, 2013; (iii) Consolidated Statements of Comprehensive Income (Loss) for the three months and six months ended June 30, 2014 and June 30, 2013; (iv) Consolidated Statements of Changes in Stockholders’ Equity for the three and six months ended June 30, 2014 and June 30, 2013; (v) Consolidated Statements of Cash Flows for the six months ended June 30, 2014 and June 30, 2013; and (vi) Notes to the Consolidated Financial Statements.

67

SIGNATURES

Pursuant to the requirements of the Exchange Act, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

QCR HOLDINGS, INC.

(Registrant)

Date	August 7, 2014	/s/ Douglas M. Hultquist
		Douglas M. Hultquist, President
		Chief Executive Officwer
Date	August 7, 2014	/s/ Todd A. Gipple
		Todd A. Gipple, Executive Vice President
		Chief Operating Officer
		Chief Financial Offier
Date	August 7, 2014	/s/ John R. Oakes
		John R. Oakes, 1st Vice President
		Director of Financial Reporting
		Principal Accounting Officer

68 

EX-31

Exhibit 31.1

	I, Douglas M. Hultquist, certify that:
1.	I have reviewed this quarterly report on Form 10-Q of QCR Holdings, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:     August 7, 2014	/s/ Douglas M. Hultquist
	Douglas M. Hultquist
	Chief Executive Officer

EX-31

 

Exhibit 31.2

	I, Todd A. Gipple, certify that:
1.	I have reviewed this quarterly report on Form 10-Q of QCR Holdings, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. 

Date:     August 7, 2014	/s/ Todd A. Gipple
	Todd A. Gipple
	Chief Operating Officer
	Chief Financial Officer

EX-32

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of QCR Holdings, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report), I, Douglas M. Hultquist, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Douglas M. Hultquist_________

Douglas M. Hultquist

Chief Executive Officer

August 7, 2014

EX-32

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of QCR Holdings, Inc. (the “Company”) on Form 10-Q for the period ending June 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report), I, Todd A. Gipple, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Todd A. Gipple___________

Todd A. Gipple

Chief Operating Officer

Chief Financial Officer

August 7, 2014

XML

Note 3 - Loans/Leases Receivable (Details) - Delinquency Status (USD $)	Jun. 30, 2014		Dec. 31, 2013
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	$ 1,163,870,062		$ 1,103,441,058
Finance Leases Portfolio Segment [Member] | Performing Financing Receivable [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	153,199,022	[1]	128,006,984	[1]
Finance Leases Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	1,804,996	[1]	894,458	[1]
Finance Leases Portfolio Segment [Member] | Delinquent Loans [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	155,004,018	[1]	128,901,442	[1]
Residential Portfolio Segment [Member] | Performing Financing Receivable [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	151,404,592	[1]	145,345,719	[1]
Residential Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	1,795,127	[1]	2,010,604	[1]
Residential Portfolio Segment [Member] | Delinquent Loans [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	153,199,719	[1]	147,356,323	[1]
Consumer Portfolio Segment [Member] | Performing Financing Receivable [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	70,140,027	[1]	74,688,039	[1]
Consumer Portfolio Segment [Member] | Nonperforming Financing Receivable [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	1,303,372	[1]	1,345,771	[1]
Consumer Portfolio Segment [Member] | Delinquent Loans [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	71,443,399	[1]	76,033,810	[1]
Performing Financing Receivable [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	374,743,641	[1]	348,040,742	[1]
Nonperforming Financing Receivable [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	4,903,495	[1]	4,250,833	[1]
Delinquent Loans [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	$ 379,647,136	[1]	$ 352,291,575	[1]

[1] Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual, accruing loans/leases that are greater than or equal to 90 days past due, and accruing troubled debt restructurings.

XML

Note 8 - Derivatives and Hedging Activities (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Note 8 - Derivatives and Hedging Activities (Details) [Line Items]
Payments for Hedge, Investing Activities	$ 2,071,650
Cash Flow Hedging [Member] | Interest Rate Cap [Member]
Note 8 - Derivatives and Hedging Activities (Details) [Line Items]
Number of Interest Rate Derivatives Held	2
Payments for Hedge, Investing Activities	$ 2,100,000

XML

Note 6 - Fair Value (Details) - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities (USD $)	Jun. 30, 2014	Dec. 31, 2013
Note 6 - Fair Value (Details) - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities [Line Items]
Cash and due from banks	$ 56,292,577	$ 41,950,790
Federal funds sold	20,490,000	39,435,000
Interest-bearing deposits at financial institutions	36,786,049	33,044,917
Investment securities:
Held to maturity	166,787,372
Held to maturity	165,670,327	138,640,105
Available for sale	515,335,097	551,758,458
Loans/leases receivable, net	1,163,870,062	1,103,441,058
Derivative Instruments	1,820,501
Derivative Instruments	1,820,501
Deposits:
Deposits	1,677,368,275	1,646,991,243
Other borrowings	151,452,927	142,448,362
Nonmaturity Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Deposits:
Deposits	1,291,304,395	1,256,209,352
Deposits, fair value	1,291,304,395	1,256,209,352
Time Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Deposits:
Deposits	386,063,880	390,781,891
Deposits, fair value	387,275,000	391,923,000
Fair Value, Inputs, Level 1 [Member]
Note 6 - Fair Value (Details) - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities [Line Items]
Cash and due from banks	56,292,577	41,950,790
Cash and due from banks	56,292,577	41,950,790
Interest-bearing deposits at financial institutions	56,292,577	41,950,790
Investment securities:
Available for sale		317,698
Fair Value, Inputs, Level 2 [Member] | Interest Rate Cap [Member]
Investment securities:
Derivative Instruments	1,820,501
Derivative Instruments	1,820,501
Fair Value, Inputs, Level 2 [Member]
Note 6 - Fair Value (Details) - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities [Line Items]
Federal funds sold	20,490,000	39,435,000
Federal funds sold	20,490,000	39,435,000
Investment securities:
Available for sale		551,440,760
Loans/leases receivable, net	1,518,632,461	1,430,489,328
Loans/leases receivable, net, fair value	1,521,236,736	1,441,952,443
Derivative Instruments	1,820,501
Derivative Instruments	1,820,501
Deposits:
Short-term borrowings	204,321,854	149,292,967
Short-term borrowings	204,321,854	149,292,967
Federal Home Loan Bank advances	222,900,000	231,350,000
Federal Home Loan Bank advances	235,770,000	241,623,000
Other borrowings	151,452,927	142,448,362
Other borrowings	162,038,000	152,761,000
Junior subordinated debentures	40,356,154	40,289,830
Junior subordinated debentures	28,332,467	28,094,228
Fair Value, Inputs, Level 3 [Member]
Investment securities:
Held to maturity	166,787,372	145,451,895
Held to maturity	165,670,327	138,640,105
Loans/leases receivable, net	7,668,264	8,342,182
Loans/leases receivable, net, fair value	8,281,725	9,009,557
Interest-bearing Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Note 6 - Fair Value (Details) - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities [Line Items]
Cash and due from banks	36,786,049	33,044,917
Interest-bearing deposits at financial institutions	36,786,049	33,044,917
Interest-bearing deposits at financial institutions	$ 36,786,049	$ 33,044,917

XML

Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases (USD $)	Jun. 30, 2014		Dec. 31, 2013
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual loans/leases	$ 17,651,534		$ 17,877,897
Troubled debt restructurings - accruing	11,962,280		13,413,366
Percentage of total nonperforming loans/leases	100.00%		100.00%
Commercial and Industrial [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing past due 90 days or more	41,950
Nonaccrual loans/leases	1,754,041	[1]	1,744,981	[2]
Troubled debt restructurings - accruing	1,483,846		878,381
Total nonperforming loans/leases	3,279,837		2,623,362
Percentage of total nonperforming loans/leases	16.45%		12.81%
Owner-Occupied Commercial Real Estate [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing past due 90 days or more	39,852		60,286
Nonaccrual loans/leases	1,232,464	[1]	1,139,385	[2]
Total nonperforming loans/leases	1,272,316		1,199,671
Percentage of total nonperforming loans/leases	6.38%		5.86%
Commercial Construction, Land Development, and Other Land [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual loans/leases	630,701	[1]	1,185,090	[2]
Total nonperforming loans/leases	630,701		1,185,090
Percentage of total nonperforming loans/leases	3.16%		5.79%
Non-Owner Occupied Commercial Real Estate [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual loans/leases	9,852,968	[1]	10,320,491	[2]
Troubled debt restructurings - accruing			905,205
Total nonperforming loans/leases	9,852,968		11,225,696
Percentage of total nonperforming loans/leases	49.41%		54.80%
Finance Leases Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing past due 90 days or more	13,167
Nonaccrual loans/leases	1,791,829	[1]	894,458	[2]
Total nonperforming loans/leases	1,804,996		894,458
Percentage of total nonperforming loans/leases	9.05%		4.37%
Residential Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing past due 90 days or more			20,126
Nonaccrual loans/leases	1,451,805	[1]	1,618,483	[2]
Troubled debt restructurings - accruing	343,322		371,995
Total nonperforming loans/leases	1,795,127		2,010,604
Percentage of total nonperforming loans/leases	9.00%		9.82%
Consumer Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing past due 90 days or more	8,646		3,762
Nonaccrual loans/leases	937,726	[1]	975,009	[2]
Troubled debt restructurings - accruing	357,000		367,000
Total nonperforming loans/leases	1,303,372		1,345,771
Percentage of total nonperforming loans/leases	6.54%		6.57%
Total [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing past due 90 days or more	103,615		84,174
Nonaccrual loans/leases	17,651,534	[1]	17,877,897	[2]
Troubled debt restructurings - accruing	2,184,168		2,522,581
Total nonperforming loans/leases	$ 19,939,317		$ 20,484,652
Percentage of total nonperforming loans/leases	100.00%		100.00%

[1] Nonaccrual loans/leases includes $9,778,112 of troubled debt restructurings, including $83,922 in commercial and industrial loans, $8,897,061 in commercial real estate loans, $156,800 in direct financing leases, $443,224 in residential real estate loans, and $197,105 in installment loans.

[2] Nonaccrual loans/leases includes $10,890,785 of troubled debt restructurings, including $77,072 in commercial and industrial loans, $10,077,501 in commercial real estate loans, $446,996 in residential real estate loans, and $289,216 in installment loans.

XML

Note 2 - Investment Securities (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Note 2 - Investment Securities (Details) [Line Items]
Number of Securities	529		529
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	259		259
Aggregate Depreciation From Amortized Cost Basis, Percent			4.00%
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year	98		98
Equity Securities [Member]
Note 2 - Investment Securities (Details) [Line Items]
Percentage of Investment Portfolio			1.00%		1.00%
Other than Temporary Impairment Losses, Investments	$ 0	$ 0	$ 0	$ 0
Debt Securities [Member]
Note 2 - Investment Securities (Details) [Line Items]
Other than Temporary Impairment Losses, Investments	$ 0	$ 0	$ 0	$ 0

XML

Note 8 - Derivatives and Hedging Activities (Details) - Changes in Fair Values of Derivative Financial Instruments (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014
Changes in Fair Values of Derivative Financial Instruments [Abstract]
Amount of loss recognized in other comprehensive income		$ (251,149)
Unrealized loss at end of period	$ (251,149)	$ (251,149)

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Note 4 - Earnings Per Share (Details) - Earnings Per Share - Basic and Diluted (USD $)	3 Months Ended				6 Months Ended
	Jun. 30, 2014	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2014	Jun. 30, 2013
Earnings Per Share - Basic and Diluted [Abstract]
Net income	$ 4,007,836	$ 3,889,215	$ 4,045,231	$ 3,265,144	$ 7,897,051	$ 7,310,375
Less: Preferred stock dividends	373,869		810,838		1,081,877	1,621,675
Net income attributable to QCR Holdings, Inc. common stockholders	$ 3,633,967		$ 3,234,393		$ 6,815,174	$ 5,688,700
Earnings per common share attributable to QCR Holdings, Inc. common stockholders
Basic	$ 0.46		$ 0.60		$ 0.86	$ 1.10
Diluted	$ 0.45		$ 0.59		$ 0.85	$ 1.08
Weighted average common shares outstanding	7,924,624		5,393,062		7,912,830	5,160,327
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan	125,890		104,213		127,449	105,482
Weighted average common and common equivalent shares outstanding	8,050,514		5,497,275		8,040,279	5,265,809

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Note 3 - Loans/Leases Receivable (Details) - Additional Information on Impaired Loans (USD $)	Jun. 30, 2014	Dec. 31, 2013
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	$ 6,724,804	$ 6,757,674
Impaired loans with no related allowance unpaid principal balance	7,113,805	7,057,203
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	11,526,148	12,322,746
Impaired loans with related allowance unpaid principal balance	12,745,441	13,838,755
Impaired loans related allowance	4,658,545	5,008,822
Total Impaired Loans/Leases:
Impaired loans recorded investment	18,250,952	19,080,420
Impaired loans unpaid principal balance	19,859,246	20,895,958
Impaired loans related allowance	4,658,545	5,008,822
Commercial and Industrial [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	575,419	492,622
Impaired loans with no related allowance unpaid principal balance	730,020	568,951
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	1,529,349	1,269,228
Impaired loans with related allowance unpaid principal balance	2,049,051	1,956,755
Impaired loans related allowance	848,593	927,453
Total Impaired Loans/Leases:
Impaired loans recorded investment	2,104,768	1,761,850
Impaired loans unpaid principal balance	2,779,071	2,525,706
Impaired loans related allowance	848,593	927,453
Owner-Occupied Commercial Real Estate [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	380,931	392,542
Impaired loans with no related allowance unpaid principal balance	380,931	392,542
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	552,923	159,247
Impaired loans with related allowance unpaid principal balance	552,923	159,247
Impaired loans related allowance	176,287	67,498
Total Impaired Loans/Leases:
Impaired loans recorded investment	933,854	551,789
Impaired loans unpaid principal balance	933,854	551,789
Impaired loans related allowance	176,287	67,498
Commercial Construction, Land Development, and Other Land [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	1,622,016	1,943,168
Impaired loans with no related allowance unpaid principal balance	1,856,416	2,054,368
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	600,920	888,547
Impaired loans with related allowance unpaid principal balance	600,920	1,011,747
Impaired loans related allowance	461,671	503,825
Total Impaired Loans/Leases:
Impaired loans recorded investment	2,222,936	2,831,715
Impaired loans unpaid principal balance	2,457,336	3,066,115
Impaired loans related allowance	461,671	503,825
Non-Owner Occupied Commercial Real Estate [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	1,941,116	1,790,279
Impaired loans with no related allowance unpaid principal balance	1,941,116	1,902,279
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	6,166,596	7,783,132
Impaired loans with related allowance unpaid principal balance	6,866,187	8,488,414
Impaired loans related allowance	1,929,568	2,603,381
Total Impaired Loans/Leases:
Impaired loans recorded investment	8,107,712	9,573,411
Impaired loans unpaid principal balance	8,807,303	10,390,693
Impaired loans related allowance	1,929,568	2,603,381
Finance Leases Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	793,247	557,469
Impaired loans with no related allowance unpaid principal balance	793,247	557,469
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	998,581	336,989
Impaired loans with related allowance unpaid principal balance	998,581	336,989
Impaired loans related allowance	534,043	192,847
Total Impaired Loans/Leases:
Impaired loans recorded investment	1,791,828	894,458
Impaired loans unpaid principal balance	1,791,828	894,458
Impaired loans related allowance	534,043	192,847
Residential Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	954,464	1,071,927
Impaired loans with no related allowance unpaid principal balance	954,464	1,071,927
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	840,664	1,044,820
Impaired loans with related allowance unpaid principal balance	840,664	1,044,820
Impaired loans related allowance	237,358	246,266
Total Impaired Loans/Leases:
Impaired loans recorded investment	1,795,128	2,116,747
Impaired loans unpaid principal balance	1,795,128	2,116,747
Impaired loans related allowance	237,358	246,266
Consumer Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	457,611	509,667
Impaired loans with no related allowance unpaid principal balance	457,611	509,667
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	837,115	840,783
Impaired loans with related allowance unpaid principal balance	837,115	840,783
Impaired loans related allowance	471,025	467,552
Total Impaired Loans/Leases:
Impaired loans recorded investment	1,294,726	1,350,450
Impaired loans unpaid principal balance	1,294,726	1,350,450
Impaired loans related allowance	$ 471,025	$ 467,552

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Note 7 - Full Redemption of Series F Preferred STock (Details) (USD $)			1 Months Ended			9 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014 Series F Preferred Stock [Member]	Mar. 31, 2014 Series F Preferred Stock [Member]	Jun. 29, 2012 Series F Preferred Stock [Member]	Sep. 15, 2011 Series F Preferred Stock [Member]
Note 7 - Full Redemption of Series F Preferred STock (Details) [Line Items]
Stock Redeemed or Called During Period, Shares			14,867	15,000	10,223
Stock Redeemed or Called During Period, Value (in Dollars)			$ 14,823,922
Dividends, Preferred Stock (in Dollars)			373,869
Preferred Stock, Shares Issued	0	29,867				40,090
Proceeds from Sale of Treasury Stock (in Dollars)						$ 40,090,000
Preferred Stock, Shares Outstanding	0	29,867

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Consolidated Statements of Cash Flows (Unaudited) (Parentheticals)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2014 Series F Noncumulative Perpetual Preferred Stock Redemption One [Member]	Jun. 30, 2014 Series F Noncumulative Perpetual Preferred Stock Redemption Two[Member]
Redemption of shares of Series F Noncumulative Perpetual Preferred Stock, net		15,000	14,867
Redemption of shares of Series F Noncumulative Perpetual Preferred Stock, net		15,000	14,867
Common stock	834,715

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Note 5 - Business Segment Information (Details) - Selected Financial Information on the Company’s Business Segments (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Segment Reporting Information [Line Items]
Total revenue	$ 26,449,589	$ 27,088,157	$ 52,231,641	$ 50,829,668
Net interest income	16,965,343	15,708,052	33,814,584	29,899,369
Net income attributable to QCR Holdings, Inc.	4,007,836	4,045,231	7,897,051	7,310,375
Total assets	2,464,839,483	2,446,771,477	2,464,839,483	2,446,771,477	2,394,952,924
Provision for loan/lease losses	1,001,879	1,520,137	2,096,041	2,577,919
Goodwill	3,222,688	3,222,688	3,222,688	3,222,688	3,222,688
Core Deposit Intangible	1,770,677	3,440,076	1,770,677	3,440,076	1,870,433
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Total revenue	(5,347,439)	(4,680,346)	(10,663,220)	(9,488,487)
Net income attributable to QCR Holdings, Inc.	(5,237,586)	(4,767,160)	(10,443,972)	(9,294,245)
Total assets	(199,192,145)	(222,507,868)	(199,192,145)	(222,507,868)
Quad City Bank and Trust [Member]
Segment Reporting Information [Line Items]
Total revenue	11,962,820	11,810,586	23,900,953	23,866,247
Net interest income	9,080,775	8,485,092	18,001,813	16,876,630
Net income attributable to QCR Holdings, Inc.	2,454,422	1,951,271	4,795,705	4,448,296
Total assets	1,278,200,724	1,226,928,751	1,278,200,724	1,226,928,751
Provision for loan/lease losses	560,879	1,020,123	1,170,041	1,377,905
Goodwill	3,222,688	3,222,688	3,222,688	3,222,688
Cedar Rapids Bank and Trust [Member]
Segment Reporting Information [Line Items]
Total revenue	8,710,753	8,140,723	17,014,378	15,069,074
Net interest income	5,739,056	5,177,399	11,641,115	9,022,281
Net income attributable to QCR Holdings, Inc.	1,781,987	1,864,374	3,716,757	3,585,185
Total assets	826,278,230	896,869,042	826,278,230	896,869,042
Provision for loan/lease losses	250,000	100,014	550,000	400,014
Core Deposit Intangible	1,770,677	3,440,076	1,770,677	3,440,076
Rockford Bank and Trust [Member]
Segment Reporting Information [Line Items]
Total revenue	3,701,841	3,649,811	7,184,717	6,833,870
Net interest income	2,576,734	2,434,391	5,052,416	4,739,468
Net income attributable to QCR Holdings, Inc.	614,264	719,480	1,085,303	815,722
Total assets	351,309,896	333,996,843	351,309,896	333,996,843
Provision for loan/lease losses	191,000	400,000	376,000	800,000
Wealth Management [Member]
Segment Reporting Information [Line Items]
Total revenue	2,155,272	1,728,074	4,304,606	3,377,085
Net income attributable to QCR Holdings, Inc.	386,913	232,035	846,207	445,042
All Other [Member]
Segment Reporting Information [Line Items]
Total revenue	5,266,342	6,439,309	10,490,207	11,171,879
Net interest income	(431,222)	(388,830)	(880,760)	(739,010)
Net income attributable to QCR Holdings, Inc.	4,007,836	4,045,231	7,897,051	7,310,375
Total assets	$ 208,242,778	$ 211,484,709	$ 208,242,778	$ 211,484,709

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Note 2 - Investment Securities (Details) - Amortized Cost and Fair Value of Securities by Contractual Maturity (USD $)	Jun. 30, 2014	Dec. 31, 2013
Securities held to maturity:
Due in one year or less	$ 2,927,386
Due in one year or less	2,929,942
Due after one year through five years	10,861,031
Due after one year through five years	10,874,917
Due after five years	152,998,955
Due after five years	151,865,468
	166,787,372
	165,670,327	138,640,105
Securities available for sale:
Due in one year or less	4,485,092
Due in one year or less	4,498,204
Due after one year through five years	48,898,104
Due after one year through five years	48,717,600
Due after five years	313,572,065
Due after five years	306,262,123
	366,955,261
	359,477,927
Amortized Cost	521,322,159
Fair Value	515,335,097
Residential Mortgage Backed Securities [Member]
Securities available for sale:
Amortized Cost	152,965,071
Fair Value	153,895,214
Other Securities [Member]
Securities held to maturity:
	1,050,000	1,050,000
Securities available for sale:
Amortized Cost	1,401,827
Fair Value	1,961,956
US States and Political Subdivisions Debt Securities [Member]
Securities held to maturity:
	164,620,327	137,590,105
US States and Political Subdivisions Debt Securities [Member] | Callable Securities [Member]
Securities available for sale:
Amortized Cost	20,829,274
Fair Value	21,268,094
Securities held to maturity:
Municipal securities	102,919,232
Municipal securities	102,260,651
US Government-sponsored Enterprises Debt Securities [Member] | Callable Securities [Member]
Securities available for sale:
Amortized Cost	271,663,942
Fair Value	264,421,214
Callable Securities [Member]
Securities available for sale:
Amortized Cost	292,493,216
Fair Value	$ 285,689,308

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Note 2 - Investment Securities (Details) - Sales of Securities (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Sales of Securities [Abstract]
Proceeds from sales of securities	$ 18,856,953	$ 6,167,531	$ 25,877,578	$ 6,167,531
Pre-tax gross gains from sales of securities	$ 571	$ 16,460	$ 21,196	$ 16,460

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Note 6 - Fair Value (Details) - Assets Measured at Fair Value on a Recurring Basis (USD $)	Jun. 30, 2014	Dec. 31, 2013
Securities available for sale:
Securities available for sale	$ 515,335,097	$ 551,758,458
Assets measured on a non-recurring basis	20,109,036	19,516,934
Derivative instruments	1,820,501
	517,155,598
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Securities available for sale:
Securities available for sale	325,620,456	356,472,987
US Government Agencies Debt Securities [Member]
Securities available for sale:
Securities available for sale	325,620,456	356,472,987
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Securities available for sale:
Securities available for sale	153,895,214	157,429,451
Residential Mortgage Backed Securities [Member]
Securities available for sale:
Securities available for sale	153,895,214	157,429,451
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Securities available for sale:
Securities available for sale	33,857,471	35,958,857
US States and Political Subdivisions Debt Securities [Member]
Securities available for sale:
Securities available for sale	33,857,471	35,958,857
Equity Securities, Other [Member] | Fair Value, Inputs, Level 1 [Member]
Securities available for sale:
Securities available for sale	318,370	317,698
Equity Securities, Other [Member] | Fair Value, Inputs, Level 2 [Member]
Securities available for sale:
Securities available for sale	1,643,586	1,579,465
Equity Securities, Other [Member]
Securities available for sale:
Securities available for sale	1,961,956	1,897,163
Fair Value, Inputs, Level 1 [Member]
Securities available for sale:
Securities available for sale		317,698
	318,370
Fair Value, Inputs, Level 2 [Member]
Securities available for sale:
Securities available for sale		551,440,760
Derivative instruments	1,820,501
	516,837,228
Fair Value, Inputs, Level 3 [Member] | Impaired Loans/Leases [Member]
Securities available for sale:
Assets measured on a non-recurring basis	8,281,725	9,009,557
Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member]
Securities available for sale:
Assets measured on a non-recurring basis	11,827,311	10,507,377
Fair Value, Inputs, Level 3 [Member]
Securities available for sale:
Assets measured on a non-recurring basis	20,109,036	19,516,934
Impaired Loans/Leases [Member]
Securities available for sale:
Assets measured on a non-recurring basis	8,281,725	9,009,557
Other Real Estate Owned [Member]
Securities available for sale:
Assets measured on a non-recurring basis	$ 11,827,311	$ 10,507,377

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Note 3 - Loans/Leases Receivable (Details) (USD $)	3 Months Ended			6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013	Jun. 30, 2014		Jun. 30, 2013	Dec. 31, 2013
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 17,651,534			$ 17,651,534			$ 17,877,897
Financing Receivable, Modifications, Recorded Investment	11,962,280			11,962,280			13,413,366
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	0		0	0		0
Troubled Debt Restructurings [Member] | Residential Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	443,224			443,224			446,996
Troubled Debt Restructurings [Member] | Commercial and Industrial [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	83,922			83,922			77,072
Troubled Debt Restructurings [Member] | Commercial Real Estate Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	8,897,061			8,897,061			10,077,501
Troubled Debt Restructurings [Member] | Finance Leases Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	156,800			156,800
Troubled Debt Restructurings [Member] | Consumer Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status							289,216
Troubled Debt Restructurings [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	9,778,112			9,778,112			10,890,785
Financing Receivable, Modifications, Number of Contracts	4		4	6		8
Financing Receivable, Modifications, Post-Modification Recorded Investment	1,317,003		959,708	1,476,590		1,817,160
Consumer Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	197,105			197,105
Nonaccrual [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Modifications, Number of Contracts				4		3
Financing Receivable, Modifications, Post-Modification Recorded Investment				168,751		178,007
Residential Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Disposal Group, Including Discontinued Operation, Mortgage Loans	1,302,175			1,302,175			1,358,290
Financing Receivable, Recorded Investment, Nonaccrual Status	1,451,805	[1]		1,451,805	[1]		1,618,483	[2]
Financing Receivable, Modifications, Recorded Investment	343,322			343,322			371,995
Commercial and Industrial [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,754,041	[1]		1,754,041	[1]		1,744,981	[2]
Financing Receivable, Modifications, Recorded Investment	1,483,846			1,483,846			878,381
Finance Leases Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,791,829	[1]		1,791,829	[1]		894,458	[2]
Consumer Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	937,726	[1]		937,726	[1]		975,009	[2]
Financing Receivable, Modifications, Recorded Investment	$ 357,000			$ 357,000			$ 367,000

[1] Nonaccrual loans/leases includes $9,778,112 of troubled debt restructurings, including $83,922 in commercial and industrial loans, $8,897,061 in commercial real estate loans, $156,800 in direct financing leases, $443,224 in residential real estate loans, and $197,105 in installment loans.

[2] Nonaccrual loans/leases includes $10,890,785 of troubled debt restructurings, including $77,072 in commercial and industrial loans, $10,077,501 in commercial real estate loans, $446,996 in residential real estate loans, and $289,216 in installment loans.

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Note 3 - Loans/Leases Receivable (Details) - Composition of the Loan/Lease Portfolio (USD $)	Jun. 30, 2014		Mar. 31, 2014	Dec. 31, 2013		Jun. 30, 2013	Mar. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	$ 1,543,517,198			$ 1,455,732,633
Plus deferred loan/lease origination costs	5,850,551			4,546,925
Total Loans/Leases plus deferred loan/lease origination costs	1,549,367,749			1,460,279,558
Less allowance for estimated losses on loans/leases	(23,067,024)		(22,653,270)	(21,448,048)		(21,156,379)	(20,769,462)	(19,925,204)
Loans/leases net of allowance for estimated losses	1,526,300,725			1,438,831,510
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	480,494,321			431,688,129
Less allowance for estimated losses on loans/leases	(6,549,378)		(6,647,658)	(5,648,774)		(4,790,828)	(4,466,264)	(4,531,545)
Owner-Occupied Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	247,596,151			261,215,912
Commercial Construction, Land Development, and Other Land [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	58,042,089			57,844,902
Other Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	377,737,501			352,692,115
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	683,375,741			671,752,929
Less allowance for estimated losses on loans/leases	(10,277,692)		(10,587,657)	(10,705,434)		(12,190,497)	(12,188,953)	(11,069,502)
Finance Leases Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net minimum lease payments to be received	175,772,051			145,662,254
Estimated unguaranteed residual values of leased assets	1,642,309			1,694,499
Unearned lease/residual income	(22,410,342)			(18,455,311)
Loans and Leases	155,004,018			128,901,442
Plus deferred loan/lease origination costs	5,935,700			4,814,183
Total Loans/Leases plus deferred loan/lease origination costs	160,939,718			133,715,625
Less allowance for estimated losses on loans/leases	(3,319,131)		(2,820,239)	(2,517,217)		(2,187,605)	(2,296,523)	(1,990,395)
Loans/leases net of allowance for estimated losses	157,620,587			131,198,408
Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	153,199,719	[1]		147,356,323	[1]
Less allowance for estimated losses on loans/leases	(1,439,185)		(1,388,885)	(1,395,849)		(1,165,341)	(966,336)	(1,070,328)
Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	71,443,399			76,033,810
Less allowance for estimated losses on loans/leases	$ (1,481,638)		$ (1,208,831)	$ (1,180,774)		$ (822,108)	$ (851,386)	$ (1,263,434)

[1] Includes residential real estate loans held for sale totaling $1,302,175 and $1,358,290 as of June 30, 2014, and December 31, 2013, respectively.

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Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013		Jun. 30, 2014		Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 4,045,231		$ 7,897,051		$ 7,310,375
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			1,390,389		1,280,550
Provision for loan/lease losses	1,520,137		2,096,041		2,577,919
Stock-based compensation expense			527,017		455,921
Deferred compensation expense accrued			684,984		419,956
Losses on other real estate owned, net	83,339		144,705		529,969
Amortization of premiums on securities, net			1,002,893		1,972,391
Securities gains			(21,196)		(16,460)
Loans originated for sale			(22,215,215)		(52,272,708)
Proceeds on sales of loans			23,169,975		56,915,600
Gains on sales of residential real estate loans	(246,621)		(196,458)		(537,772)
Gains on sales of government guaranteed portions of loans	(765,738)		(702,187)		(1,610,962)
Amortization of core deposit intangible			99,756
Accretion of acquisition fair value adjustments, net			(304,876)
Gain on the sale of premises and equipment			(42,554)
Increase in cash value of bank-owned life insurance			(842,836)		(862,570)
Bargain purchase gain on Community National acquisition	(1,841,385)				(1,841,385)
Decrease (increase) in other assets			(1,870,989)		6,556,417
Decrease in other liabilities			(3,791,845)		(1,217,181)
Net cash provided by operating activities			7,024,655		19,660,060
CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease in federal funds sold			18,945,000		22,229,000
Net increase in interest-bearing deposits at financial institutions			(3,741,132)		(10,189,746)
Proceeds from sales of other real estate owned			771,902		303,766
Purchase of derivative instruments			(2,071,650)
Activity in securities portfolio:
Purchases			(36,089,884)		(238,534,747)
Calls, maturities and redemptions			27,756,298		124,663,560
Paydowns			12,563,485		27,762,742
Sales			25,877,578		6,167,531
Activity in restricted investment securities:
Purchases			(839,500)		(4,818,750)
Redemptions			1,520,000		4,950,000
Net increase in loans/leases originated and held for investment			(91,280,287)		(51,708,379)
Net cash received from the sale of premises and equipment			291,006
Purchase of premises and equipment			(1,197,014)		(950,802)
Net cash received from Community National acquisition					3,025,073
Net cash used in investing activities			(47,494,198)		(117,100,752)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposit accounts			30,392,132		87,620,739
Net increase (decrease) in short-term borrowings			55,028,887		(13,896,757)
Activity in Federal Home Loan Bank advances:
Advances			15,000,000		119,000,000
Calls and maturities			(23,450,000)		(111,400,500)
Proceeds from term debt			10,000,000		10,000,000
Principal payments on term debt			(1,000,000)
Payment on 364-day revolving note					(5,600,000)
Repayment of Community National's other borrowings at acquisition					(3,950,000)
Payment of cash dividends on common and preferred stock			(1,649,555)		(1,813,624)
Net cash provided by financing activities			54,811,330		80,189,136
Net increase (decrease) in cash and due from banks			14,341,787		(17,251,556)
Cash and due from banks, beginning			41,950,790		61,568,446
Cash and due from banks, ending	44,316,890		56,292,577		44,316,890
Supplemental disclosure of cash flow information, cash payments for:
Interest			8,376,272		8,897,240
Income/franchise taxes			3,057,500		1,031,120
Supplemental schedule of noncash investing activities:
Change in accumulated other comprehensive income (loss), unrealized gains (losses) on securities available for sale and derivative instruments, net			9,706,798		(13,927,847)
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised			(177,984)		(424,587)
Transfers of loans to other real estate owned			2,138,768		187,500
Fair value of assets acquired:
Cash and due from banks *	9,286,757	[1]		[1]	9,286,757	[1]
Federal funds sold	12,335,000				12,335,000
Interest-bearing deposits at financial institutions	2,024,539				2,024,539
Securities available for sale	45,853,826				45,853,826
Loans/leases receivable held for investment, net	195,658,486				195,658,486
Premises and equipment, net	8,132,021				8,132,021
Core deposit intangible	3,440,076				3,440,076
Bank-owned life insurance	4,595,529				4,595,529
Restricted investment securities	1,259,375				1,259,375
Other real estate owned	550,326				550,326
Other assets	5,178,583				5,178,583
Total assets acquired	288,314,518				288,314,518
Fair value of liabilities assumed:
Deposits	255,045,071				255,045,071
Other borrowings	3,950,000				3,950,000
Junior subordinated debentures	4,125,175				4,125,175
Other liabilities	3,911,053				3,911,053
Total liabilities assumed	267,031,299				267,031,299
Net assets acquired	21,283,219				21,283,219
Consideration paid:
Cash paid *				[1]	6,261,684	[1]
Issuance of 834,715 shares of common stock					13,180,150
Total consideration paid					19,441,834
Bargain purchase gain	1,841,385				1,841,385
Series F Noncumulative Perpetual Preferred Stock Redemption One [Member]
Activity in Federal Home Loan Bank advances:
Redemption of 15,000 shares of Series F Noncumulative Perpetual Preferred Stock, net			(15,000,000)
Redemption of 14,867 shares of Series F Noncumulative Perpetual Preferred Stock, net			(15,000,000)
Series F Noncumulative Perpetual Preferred Stock Redemption Two[Member]
Activity in Federal Home Loan Bank advances:
Redemption of 15,000 shares of Series F Noncumulative Perpetual Preferred Stock, net			(14,823,922)
Redemption of 14,867 shares of Series F Noncumulative Perpetual Preferred Stock, net			(14,823,922)
Common Stock [Member]
Activity in Federal Home Loan Bank advances:
Proceeds from issuance of common stock, net			$ 313,788		$ 229,278

[1] Net cash received at closing totaled $3,025,073

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Note 3 - Loans/Leases Receivable (Details) - Aging of the Loan/Lease Portfolio (USD $)	Jun. 30, 2014		Dec. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 1,520,038,538		$ 1,430,204,215
30-59 Days Past Due	3,014,036		5,430,932
60-89 Days Past Due	2,709,475		2,135,415
Accruing Past Due 90 Days or More	103,615		84,174
Nonacrrual Loans/Loans	17,651,534		17,877,897
Total	1,543,517,198		1,455,732,633
Current as a percentage of total loan/lease portfolio	98.48%		98.25%
30-59 Days Past Due as a percentage of total loan/lease portfolio	0.20%		0.37%
60-89 Days Past Due as a percentage of total loan/lease portfolio	0.18%		0.15%
Accruing Past Due 90 Days or More as a percentage of total loan/lease portfolio	0.01%		0.01%
Nonacrrual Loans/Loans as a percentage of total loan/lease portfolio	1.14%		1.23%
Total as a percentage of total loan/lease portfolio	100.00%		100.00%
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	478,425,272		429,557,699
30-59 Days Past Due	162,344		199,949
60-89 Days Past Due	110,714		185,500
Accruing Past Due 90 Days or More	41,950
Nonacrrual Loans/Loans	1,754,041	[1]	1,744,981	[2]
Total	480,494,321		431,688,129
Total as a percentage of total loan/lease portfolio	16.45%		12.81%
Owner-Occupied Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	244,861,764		258,557,660
30-59 Days Past Due	81,356		465,418
60-89 Days Past Due	1,380,715		993,163
Accruing Past Due 90 Days or More	39,852		60,286
Nonacrrual Loans/Loans	1,232,464	[1]	1,139,385	[2]
Total	247,596,151		261,215,912
Total as a percentage of total loan/lease portfolio	6.38%		5.86%
Commercial Construction, Land Development, and Other Land [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	56,324,561		56,301,186
30-59 Days Past Due	1,086,827		358,626
Nonacrrual Loans/Loans	630,701	[1]	1,185,090	[2]
Total	58,042,089		57,844,902
Total as a percentage of total loan/lease portfolio	3.16%		5.79%
Other Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	366,941,393		341,743,730
30-59 Days Past Due	924,340		476,877
60-89 Days Past Due	18,800		151,017
Nonacrrual Loans/Loans	9,852,968		10,320,491
Total	377,737,501		352,692,115
Finance Leases Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	151,796,790		126,878,515
30-59 Days Past Due	599,582		714,464
60-89 Days Past Due	802,650		414,005
Accruing Past Due 90 Days or More	13,167
Nonacrrual Loans/Loans	1,791,829	[1]	894,458	[2]
Total	155,004,018		128,901,442
Total as a percentage of total loan/lease portfolio	9.05%		4.37%
Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	151,334,965		142,353,936
30-59 Days Past Due	65,549		3,088,516
60-89 Days Past Due	347,400		275,262
Accruing Past Due 90 Days or More			20,126
Nonacrrual Loans/Loans	1,451,805	[1]	1,618,483	[2]
Total	153,199,719	[3]	147,356,323	[3]
Total as a percentage of total loan/lease portfolio	9.00%		9.82%
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	70,353,793		74,811,489
30-59 Days Past Due	94,038		127,082
60-89 Days Past Due	49,196		116,468
Accruing Past Due 90 Days or More	8,646		3,762
Nonacrrual Loans/Loans	937,726	[1]	975,009	[2]
Total	$ 71,443,399		$ 76,033,810
Total as a percentage of total loan/lease portfolio	6.54%		6.57%

[1] Nonaccrual loans/leases includes $9,778,112 of troubled debt restructurings, including $83,922 in commercial and industrial loans, $8,897,061 in commercial real estate loans, $156,800 in direct financing leases, $443,224 in residential real estate loans, and $197,105 in installment loans.

[2] Nonaccrual loans/leases includes $10,890,785 of troubled debt restructurings, including $77,072 in commercial and industrial loans, $10,077,501 in commercial real estate loans, $446,996 in residential real estate loans, and $289,216 in installment loans.

[3] Includes residential real estate loans held for sale totaling $1,302,175 and $1,358,290 as of June 30, 2014, and December 31, 2013, respectively.

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Note 3 - Loans/Leases Receivable (Details) - Troubled Debt Restructurings - Three Months Ending (USD $)			3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended			6 Months Ended		3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014 Significant Payment Delay [Member] Commercial and Industrial [Member]	Jun. 30, 2014 Significant Payment Delay [Member] Commercial and Industrial [Member]	Jun. 30, 2013 Significant Payment Delay [Member] Residential Portfolio Segment [Member]	Jun. 30, 2013 Significant Payment Delay [Member] Residential Portfolio Segment [Member]	Jun. 30, 2013 Significant Payment Delay [Member] Consumer Portfolio Segment [Member]	Jun. 30, 2014 Significant Payment Delay [Member]	Jun. 30, 2013 Significant Payment Delay [Member]	Jun. 30, 2014 Significant Payment Delay [Member]	Jun. 30, 2013 Significant Payment Delay [Member]	Jun. 30, 2013 Interest Rate Adjusted Below Market [Member] Residential Portfolio Segment [Member]	Jun. 30, 2013 Interest Rate Adjusted Below Market [Member] Residential Portfolio Segment [Member]	Jun. 30, 2013 Interest Rate Adjusted Below Market [Member] Commercial Construction, Land Development, and Other Land [Member]	Jun. 30, 2013 Interest Rate Adjusted Below Market [Member] Commercial Construction, Land Development, and Other Land [Member]	Jun. 30, 2013 Interest Rate Adjusted Below Market [Member]	Jun. 30, 2013 Interest Rate Adjusted Below Market [Member]	Jun. 30, 2014 All Other [Member] Commercial and Industrial [Member]	Jun. 30, 2014 All Other [Member] Commercial and Industrial [Member]	Jun. 30, 2014 All Other [Member]	Jun. 30, 2014 All Other [Member]	Jun. 30, 2014 Troubled Debt Restructurings [Member]	Jun. 30, 2013 Troubled Debt Restructurings [Member]	Jun. 30, 2014 Troubled Debt Restructurings [Member]	Jun. 30, 2013 Troubled Debt Restructurings [Member]	Jun. 30, 2014 Commercial and Industrial [Member]	Dec. 31, 2013 Commercial and Industrial [Member]	Jun. 30, 2014 Residential Portfolio Segment [Member]	Dec. 31, 2013 Residential Portfolio Segment [Member]	Jun. 30, 2014 Consumer Portfolio Segment [Member]	Dec. 31, 2013 Consumer Portfolio Segment [Member]	Jun. 30, 2014 Commercial Construction, Land Development, and Other Land [Member]	Dec. 31, 2013 Commercial Construction, Land Development, and Other Land [Member]
CONCESSION - Significant payment delay
Number of loans/leases			3	3	1	1	1	3	2	4	3	1	1	1	1	2	2	1	1	1	1	4	4	6	8
Pre-modification recorded investment			$ 889,154	$ 889,154	$ 91,581	$ 91,581	$ 370,000	$ 889,154	$ 461,581	$ 978,597	$ 509,539	$ 160,627	$ 160,627	$ 337,500	$ 337,500	$ 498,127	$ 498,127	$ 427,849	$ 427,849	$ 427,849	$ 427,849	$ 1,317,003	$ 959,708	$ 1,476,590	$ 1,817,160
Post-modification recorded investment			889,154	889,154	91,581	91,581	370,000	889,154	461,581	978,597	509,539	160,627	160,627	337,500	337,500	498,127	498,127	427,849	427,849	427,849	427,849	1,317,003	959,708	1,476,590	1,817,160
Specific allowance	$ 4,658,545	$ 5,008,822	$ 239,783	$ 239,783				$ 239,783		$ 239,783								$ 113,449	$ 113,449	$ 113,449	$ 113,449	$ 353,232	$ 188,700	$ 353,232	$ 188,700	$ 848,593	$ 927,453	$ 237,358	$ 246,266	$ 471,025	$ 467,552	$ 461,671	$ 503,825

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Consolidated Balance Sheets (Unaudited) (USD $)	Jun. 30, 2014	Dec. 31, 2013
ASSETS
Cash and due from banks	$ 56,292,577	$ 41,950,790
Federal funds sold	20,490,000	39,435,000
Interest-bearing deposits at financial institutions	36,786,049	33,044,917
Securities held to maturity, at amortized cost	166,787,372	145,451,895
Securities available for sale, at fair value	515,335,097	551,758,458
Total securities	682,122,469	697,210,353
Loans receivable held for sale	1,302,175	1,358,290
Loans/leases receivable held for investment	1,548,065,574	1,458,921,268
Gross loans/leases receivable	1,549,367,749	1,460,279,558
Less allowance for estimated losses on loans/leases	(23,067,024)	(21,448,048)
Net loans/leases receivable	1,526,300,725	1,438,831,510
Premises and equipment, net	36,313,537	36,755,364
Goodwill	3,222,688	3,222,688
Core deposit intangible	1,770,677	1,870,433
Bank-owned life insurance	52,844,877	52,002,041
Restricted investment securities	16,347,125	17,027,625
Other real estate owned, net	10,951,214	9,729,053
Other assets	21,397,545	23,873,150
Total assets	2,464,839,483	2,394,952,924
Deposits:
Noninterest-bearing	531,062,583	542,566,087
Interest-bearing	1,146,305,692	1,104,425,156
Total deposits	1,677,368,275	1,646,991,243
Short-term borrowings	204,321,854	149,292,967
Federal Home Loan Bank advances	222,900,000	231,350,000
Other borrowings	151,452,927	142,448,362
Junior subordinated debentures	40,356,154	40,289,830
Other liabilities	33,797,744	37,003,742
Total liabilities	2,330,196,954	2,247,376,144
STOCKHOLDERS' EQUITY
Preferred stock, $1 par value; shares authorized 250,000		29,867
Common stock, $1 par value; shares authorized 20,000,000	8,049,889	8,005,708
Additional paid-in capital	60,999,044	90,154,528
Retained earnings	71,137,294	64,637,173
Accumulated other comprehensive loss	(3,937,188)	(13,643,986)
Less treasury stock, June 2014 and December 2013 - 121,246 common shares, at cost	(1,606,510)	(1,606,510)
Total stockholders' equity	134,642,529	147,576,780
Total liabilities and stockholders' equity	$ 2,464,839,483	$ 2,394,952,924

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Note 6 - Fair Value (Details) - Quantitative Information About Level Fair Value Measurements (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 20,109,036	$ 19,516,934
Impaired Loans/Leases [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	8,281,725	9,009,557
Valuation technique	Appraisal of collateral	Appraisal of collateral
Impaired Loans/Leases [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range	10.00%	10.00%
Impaired Loans/Leases [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range	50.00%	50.00%
Other Real Estate Owned [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 11,827,311	$ 10,507,377
Valuation technique	Appraisal of collateral	Appraisal of collateral
Other Real Estate Owned [Member] | Minimum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range	0.00%	0.00%
Other Real Estate Owned [Member] | Maximum [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Range	35.00%	35.00%

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (USD $)	Series F Noncumulative Perpetual Preferred Stock Redemption Two[Member] Preferred Stock [Member]	Series F Noncumulative Perpetual Preferred Stock Redemption Two[Member] Additional Paid-in Capital [Member]	Series F Noncumulative Perpetual Preferred Stock Redemption Two[Member]	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Total
Balance at Dec. 31, 2012				$ 54,867	$ 5,039,448	$ 78,912,791	$ 53,326,542	$ 4,706,683	$ (1,606,510)	$ 140,433,821
Net income							3,265,144			3,265,144
Other comprehensive income (loss), net of tax								(836,358)		(836,358)
Preferred cash dividends declared and accrued							(810,837)			(810,837)
Proceeds from issuance of common stock as a result of stock purchased under the Employee Stock Purchase Plan					5,884	63,487				69,371
Proceeds from issuance of common stock as a result of stock options exercised					19,278	153,550				172,828
Exchange of 7,048 shares of common stock in connection with stock options exercised					(7,048)	(111,628)				(118,676)
Stock-based compensation expense						293,798				293,798
Tax benefit of nonqualified stock options exercised						35,251				35,251
Restricted stock awards					16,798	(16,798)
Exchange of shares of common stock in connection with payroll taxes for restricted stock					(16,798)	(289,113)				(305,911)
Balance at Mar. 31, 2013				54,867	5,057,562	79,041,338	55,780,849	3,870,325	(1,606,510)	142,198,431
Net income							4,045,231			4,045,231
Other comprehensive income (loss), net of tax								(13,091,489)		(13,091,489)
Common cash dividends declared							(228,971)			(228,971)
Preferred cash dividends declared and accrued							(810,838)			(810,838)
Proceeds from issuance of 834,715 shares of common stock as a result of the acquisition of Community National Bancorporation, net					834,715	12,181,894				13,016,609
Proceeds from issuance of common stock as a result of stock purchased under the Employee Stock Purchase Plan					9,560	104,221				113,781
Proceeds from issuance of common stock as a result of stock options exercised					3,769	33,070				36,839
Stock-based compensation expense						162,123				162,123
Tax benefit of nonqualified stock options exercised						4,197				4,197
Restricted stock awards					12,707	(12,707)
Balance at Jun. 30, 2013				54,867	5,918,313	91,514,136	58,786,271	(9,221,164)	(1,606,510)	145,445,913
Balance at Dec. 31, 2013				29,867	8,005,708	90,154,528	64,637,173	(13,643,986)	(1,606,510)	147,576,780
Net income							3,889,215			3,889,215
Other comprehensive income (loss), net of tax								5,230,784		5,230,784
Preferred cash dividends declared and accrued							(708,008)			(708,008)
Redemption of preferred stock	(15,000)	(14,985,000)	(15,000,000)
Proceeds from issuance of common stock as a result of stock purchased under the Employee Stock Purchase Plan					6,189	78,256				84,445
Proceeds from issuance of common stock as a result of stock options exercised					9,814	85,582				95,396
Stock-based compensation expense						347,752				347,752
Tax benefit of nonqualified stock options exercised						18,647				18,647
Restricted stock awards					27,197	(27,197)
Exchange of shares of common stock in connection with payroll taxes for restricted stock					(10,300)	(167,684)				(177,984)
Balance at Mar. 31, 2014				14,867	8,038,608	75,504,884	67,818,380	(8,413,202)	(1,606,510)	141,357,027
Balance at Dec. 31, 2013				29,867					(1,606,510)	147,576,780
Net income										7,897,051
Other comprehensive income (loss), net of tax										9,706,798
Redemption of preferred stock	(14,867)	(14,809,055)	(14,823,922)
Balance at Jun. 30, 2014									(1,606,510)	134,642,529
Balance at Mar. 31, 2014				14,867	8,038,608	75,504,884	67,818,380	(8,413,202)	(1,606,510)	141,357,027
Net income							4,007,836			4,007,836
Other comprehensive income (loss), net of tax								4,476,014		4,476,014
Common cash dividends declared							(315,053)			(315,053)
Preferred cash dividends declared and accrued							(373,869)			(373,869)
Redemption of preferred stock	(14,867)	(14,809,055)	(14,823,922)
Proceeds from issuance of common stock as a result of stock purchased under the Employee Stock Purchase Plan					8,361	119,797				128,158
Proceeds from issuance of common stock as a result of stock options exercised					630	5,159				5,789
Stock-based compensation expense						179,265				179,265
Tax benefit of nonqualified stock options exercised						1,284				1,284
Restricted stock awards					2,290	(2,290)
Balance at Jun. 30, 2014					$ 8,049,889	$ 60,999,044	$ 71,137,294	$ (3,937,188)	$ (1,606,510)	$ 134,642,529

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Note 3 - Loans/Leases Receivable (Details) - Impaired Loans/Leases - Six Months Ending (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Dec. 31, 2013
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	$ 6,724,804		$ 6,724,804	$ 6,757,674
Unpaid Principal Balance - No Allowance Recorded	7,113,805		7,113,805	7,057,203
Average Recorded Investment - No Allowance Recorded	7,019,250	7,195,437	7,951,032
Interest Income Recognized - No Allowance Recorded	1,621	5,280	19,137
Interest Income Recognized For Cash Payments Received - No Allowance Recorded	1,621	5,280	19,137
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	11,526,148		11,526,148	12,322,746
Unpaid Principal Balance - Allowance Recorded	12,745,441		12,745,441	13,838,755
Related Allowance - Allowance Recorded	4,658,545		4,658,545	5,008,822
Average Recorded Investment - Allowance Recorded	10,436,823	16,549,285	9,861,432
Interest Income Recognized - Allowance Recorded	4	18,023	778
Interest Income Recognized For Cash Payments Received - Allowance Recorded	4	18,023	778
Total Impaired Loans/Leases:
Recorded Investment	18,250,952		18,250,952	19,080,420
Unpaid Principal Balance	19,859,246		19,859,246	20,895,958
Related Allowance	4,658,545		4,658,545	5,008,822
Average Recorded Investment	17,456,073	23,744,722	17,812,464
Interest Income Recognized	1,625	23,303	19,915
Interest Income Recognized For Cash Payments Received	1,625	23,303	19,915
Commercial and Industrial [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	575,419		575,419	492,622
Unpaid Principal Balance - No Allowance Recorded	730,020		730,020	568,951
Average Recorded Investment - No Allowance Recorded	589,889	613,506	631,165
Interest Income Recognized - No Allowance Recorded	11	1,937	1,899
Interest Income Recognized For Cash Payments Received - No Allowance Recorded	11	1,937	1,899
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	1,529,349		1,529,349	1,269,228
Unpaid Principal Balance - Allowance Recorded	2,049,051		2,049,051	1,956,755
Related Allowance - Allowance Recorded	848,593		848,593	927,453
Average Recorded Investment - Allowance Recorded	989,979	1,229,737	855,050
Interest Income Recognized - Allowance Recorded		15,307
Interest Income Recognized For Cash Payments Received - Allowance Recorded		15,307
Total Impaired Loans/Leases:
Recorded Investment	2,104,768		2,104,768	1,761,850
Unpaid Principal Balance	2,779,071		2,779,071	2,525,706
Related Allowance	848,593		848,593	927,453
Average Recorded Investment	1,579,868	1,843,243	1,486,215
Interest Income Recognized	11	17,244	1,899
Interest Income Recognized For Cash Payments Received	11	17,244	1,899
Owner-Occupied Commercial Real Estate [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	380,931		380,931	392,542
Unpaid Principal Balance - No Allowance Recorded	380,931		380,931	392,542
Average Recorded Investment - No Allowance Recorded	383,861	3,107,106	410,136
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	552,923		552,923	159,247
Unpaid Principal Balance - Allowance Recorded	552,923		552,923	159,247
Related Allowance - Allowance Recorded	176,287		176,287	67,498
Average Recorded Investment - Allowance Recorded	334,236	653,815	223,337
Total Impaired Loans/Leases:
Recorded Investment	933,854		933,854	551,789
Unpaid Principal Balance	933,854		933,854	551,789
Related Allowance	176,287		176,287	67,498
Average Recorded Investment	718,097	3,760,921	633,473
Commercial Construction, Land Development, and Other Land [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	1,622,016		1,622,016	1,943,168
Unpaid Principal Balance - No Allowance Recorded	1,856,416		1,856,416	2,054,368
Average Recorded Investment - No Allowance Recorded	1,642,205	325,000	1,923,766
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	600,920		600,920	888,547
Unpaid Principal Balance - Allowance Recorded	600,920		600,920	1,011,747
Related Allowance - Allowance Recorded	461,671		461,671	503,825
Average Recorded Investment - Allowance Recorded	602,498	3,656,226	605,198
Interest Income Recognized - Allowance Recorded		2,716
Interest Income Recognized For Cash Payments Received - Allowance Recorded		2,716
Total Impaired Loans/Leases:
Recorded Investment	2,222,936		2,222,936	2,831,715
Unpaid Principal Balance	2,457,336		2,457,336	3,066,115
Related Allowance	461,671		461,671	503,825
Average Recorded Investment	2,244,703	3,981,226	2,528,964
Interest Income Recognized		2,716
Interest Income Recognized For Cash Payments Received		2,716
Non-Owner Occupied Commercial Real Estate [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	1,941,116		1,941,116	1,790,279
Unpaid Principal Balance - No Allowance Recorded	1,941,116		1,941,116	1,902,279
Average Recorded Investment - No Allowance Recorded	2,222,582	353,972	2,695,138
Interest Income Recognized - No Allowance Recorded		657	13,283
Interest Income Recognized For Cash Payments Received - No Allowance Recorded		657	13,283
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	6,166,596		6,166,596	7,783,132
Unpaid Principal Balance - Allowance Recorded	6,866,187		6,866,187	8,488,414
Related Allowance - Allowance Recorded	1,929,568		1,929,568	2,603,381
Average Recorded Investment - Allowance Recorded	6,057,384	10,143,708	5,974,240
Total Impaired Loans/Leases:
Recorded Investment	8,107,712		8,107,712	9,573,411
Unpaid Principal Balance	8,807,303		8,807,303	10,390,693
Related Allowance	1,929,568		1,929,568	2,603,381
Average Recorded Investment	8,279,966	10,497,680	8,669,378
Interest Income Recognized		657	13,283
Interest Income Recognized For Cash Payments Received		657	13,283
Finance Leases Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	793,247		793,247	557,469
Unpaid Principal Balance - No Allowance Recorded	793,247		793,247	557,469
Average Recorded Investment - No Allowance Recorded	700,607	822,718	651,516
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	998,581		998,581	336,989
Unpaid Principal Balance - Allowance Recorded	998,581		998,581	336,989
Related Allowance - Allowance Recorded	534,043		534,043	192,847
Average Recorded Investment - Allowance Recorded	855,628	133,038	648,487
Total Impaired Loans/Leases:
Recorded Investment	1,791,828		1,791,828	894,458
Unpaid Principal Balance	1,791,828		1,791,828	894,458
Related Allowance	534,043		534,043	192,847
Average Recorded Investment	1,556,235	955,756	1,300,003
Residential Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	954,464		954,464	1,071,927
Unpaid Principal Balance - No Allowance Recorded	954,464		954,464	1,071,927
Average Recorded Investment - No Allowance Recorded	1,014,286	1,057,657	1,137,735
Interest Income Recognized - No Allowance Recorded	720		2,175
Interest Income Recognized For Cash Payments Received - No Allowance Recorded	720		2,175
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	840,664		840,664	1,044,820
Unpaid Principal Balance - Allowance Recorded	840,664		840,664	1,044,820
Related Allowance - Allowance Recorded	237,358		237,358	246,266
Average Recorded Investment - Allowance Recorded	779,104	302,334	767,008
Interest Income Recognized - Allowance Recorded	4		778
Interest Income Recognized For Cash Payments Received - Allowance Recorded	4		778
Total Impaired Loans/Leases:
Recorded Investment	1,795,128		1,795,128	2,116,747
Unpaid Principal Balance	1,795,128		1,795,128	2,116,747
Related Allowance	237,358		237,358	246,266
Average Recorded Investment	1,793,390	1,359,991	1,904,743
Interest Income Recognized	724		2,953
Interest Income Recognized For Cash Payments Received	724		2,953
Consumer Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	457,611		457,611	509,667
Unpaid Principal Balance - No Allowance Recorded	457,611		457,611	509,667
Average Recorded Investment - No Allowance Recorded	465,820	915,478	501,576
Interest Income Recognized - No Allowance Recorded	890	2,686	1,780
Interest Income Recognized For Cash Payments Received - No Allowance Recorded	890	2,686	1,780
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	837,115		837,115	840,783
Unpaid Principal Balance - Allowance Recorded	837,115		837,115	840,783
Related Allowance - Allowance Recorded	471,025		471,025	467,552
Average Recorded Investment - Allowance Recorded	817,994	430,427	788,112
Total Impaired Loans/Leases:
Recorded Investment	1,294,726		1,294,726	1,350,450
Unpaid Principal Balance	1,294,726		1,294,726	1,350,450
Related Allowance	471,025		471,025	467,552
Average Recorded Investment	1,283,814	1,345,905	1,289,688
Interest Income Recognized	890	2,686	1,780
Interest Income Recognized For Cash Payments Received	$ 890	$ 2,686	$ 1,780

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Note 5 - Business Segment Information (Tables)

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Commercial Banking
	Quad City		Cedar Rapids		Rockford		Wealth					Intercompany			Consolidated
	Bank & Trust		Bank & Trust		Bank & Trust		Management		All Other			Eliminations			Total
Three Months Ended June 30, 2014
Total revenue	$	11,962,820	$	8,710,753	$	3,701,841	$	2,155,272	$	5,266,342		$	(5,347,439	)	$	26,449,589
Net interest income	$	9,080,775	$	5,739,056	$	2,576,734	$	-	$	(431,222	)	$	-		$	16,965,343
Net income	$	2,454,422	$	1,781,987	$	614,264	$	386,913	$	4,007,836		$	(5,237,586	)	$	4,007,836
Total assets	$	1,278,200,724	$	826,278,230	$	351,309,896	$	-	$	208,242,778		$	(199,192,145	)	$	2,464,839,483
Provision for loan/lease losses	$	560,879	$	250,000	$	191,000	$	-	$	-		$	-		$	1,001,879
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,770,677	$	-	$	-	$	-		$	-		$	1,770,677
Three Months Ended June 30, 2013
Total revenue	$	11,810,586	$	8,140,723	$	3,649,811	$	1,728,074	$	6,439,309		$	(4,680,346	)	$	27,088,157
Net interest income	$	8,485,092	$	5,177,399	$	2,434,391	$	-	$	(388,830	)	$	-		$	15,708,052
Net income	$	1,951,271	$	1,864,374	$	719,480	$	232,035	$	4,045,231		$	(4,767,160	)	$	4,045,231
Total assets	$	1,226,928,751	$	896,869,042	$	333,996,843	$	-	$	211,484,709		$	(222,507,868	)	$	2,446,771,477
Provision for loan/lease losses	$	1,020,123	$	100,014	$	400,000	$	-	$	-		$	-		$	1,520,137
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	3,440,076	$	-	$	-	$	-		$	-		$	3,440,076
Six Months Ended June 30, 2014
Total revenue	$	23,900,953	$	17,014,378	$	7,184,717	$	4,304,606	$	10,490,207		$	(10,663,220	)	$	52,231,641
Net interest income	$	18,001,813	$	11,641,115	$	5,052,416	$	-	$	(880,760	)	$	-		$	33,814,584
Net income	$	4,795,705	$	3,716,757	$	1,085,303	$	846,207	$	7,897,051		$	(10,443,972	)	$	7,897,051
Total assets	$	1,278,200,724	$	826,278,230	$	351,309,896	$	-	$	208,242,778		$	(199,192,145	)	$	2,464,839,483
Provision for loan/lease losses	$	1,170,041	$	550,000	$	376,000	$	-	$	-		$	-		$	2,096,041
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,770,677	$	-	$	-	$	-		$	-		$	1,770,677
Six Months Ended June 30, 2013
Total revenue	$	23,866,247	$	15,069,074	$	6,833,870	$	3,377,085	$	11,171,879		$	(9,488,487	)	$	50,829,668
Net interest income	$	16,876,630	$	9,022,281	$	4,739,468	$	-	$	(739,010	)	$	-		$	29,899,369
Net income	$	4,448,296	$	3,585,185	$	815,722	$	445,042	$	7,310,375		$	(9,294,245	)	$	7,310,375
Total assets	$	1,226,928,751	$	896,869,042	$	333,996,843	$	-	$	211,484,709		$	(222,507,868	)	$	2,446,771,477
Provision for loan/lease losses	$	1,377,905	$	400,014	$	800,000	$	-	$	-		$	-		$	2,577,919
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	3,440,076	$	-	$	-	$	-		$	-		$	3,440,076

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Note 3 - Loans/Leases Receivable (Details) - Impaired Loans/Leases - Three Months Ending (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	$ 7,019,250	$ 7,195,437	$ 7,951,032
Interest Income Recognized - No Allownace Recorded	1,621	5,280	19,137
Interest Income Recognized for Cahs Payments Received - No Allownace Recorded	1,621	5,280	19,137
Impaired Loans/Leases with Specific Allowance Recorded:
Average Recorded Investment - Allowance Recorded	10,436,823	16,549,285	9,861,432
Interest Income Recognized - Allowance Recorded	4	18,023	778
Interest Income Recognized for Cahs Payments Received - Allowance Recorded	4	18,023	778
Total Impaired Loans/Leases:
Average Recorded Investment	17,456,073	23,744,722	17,812,464
Interest Income Recognized	1,625	23,303	19,915
Interest Income Recognized for Cahs Payments Received	1,625	23,303	19,915
Commercial and Industrial [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	589,889	613,506	631,165
Interest Income Recognized - No Allownace Recorded	11	1,937	1,899
Interest Income Recognized for Cahs Payments Received - No Allownace Recorded	11	1,937	1,899
Impaired Loans/Leases with Specific Allowance Recorded:
Average Recorded Investment - Allowance Recorded	989,979	1,229,737	855,050
Interest Income Recognized - Allowance Recorded		15,307
Interest Income Recognized for Cahs Payments Received - Allowance Recorded		15,307
Total Impaired Loans/Leases:
Average Recorded Investment	1,579,868	1,843,243	1,486,215
Interest Income Recognized	11	17,244	1,899
Interest Income Recognized for Cahs Payments Received	11	17,244	1,899
Owner-Occupied Commercial Real Estate [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	383,861	3,107,106	410,136
Impaired Loans/Leases with Specific Allowance Recorded:
Average Recorded Investment - Allowance Recorded	334,236	653,815	223,337
Total Impaired Loans/Leases:
Average Recorded Investment	718,097	3,760,921	633,473
Commercial Construction, Land Development, and Other Land [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	1,642,205	325,000	1,923,766
Impaired Loans/Leases with Specific Allowance Recorded:
Average Recorded Investment - Allowance Recorded	602,498	3,656,226	605,198
Interest Income Recognized - Allowance Recorded		2,716
Interest Income Recognized for Cahs Payments Received - Allowance Recorded		2,716
Total Impaired Loans/Leases:
Average Recorded Investment	2,244,703	3,981,226	2,528,964
Interest Income Recognized		2,716
Interest Income Recognized for Cahs Payments Received		2,716
Non-Owner Occupied Commercial Real Estate [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	2,222,582	353,972	2,695,138
Interest Income Recognized - No Allownace Recorded		657	13,283
Interest Income Recognized for Cahs Payments Received - No Allownace Recorded		657	13,283
Impaired Loans/Leases with Specific Allowance Recorded:
Average Recorded Investment - Allowance Recorded	6,057,384	10,143,708	5,974,240
Total Impaired Loans/Leases:
Average Recorded Investment	8,279,966	10,497,680	8,669,378
Interest Income Recognized		657	13,283
Interest Income Recognized for Cahs Payments Received		657	13,283
Finance Leases Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	700,607	822,718	651,516
Impaired Loans/Leases with Specific Allowance Recorded:
Average Recorded Investment - Allowance Recorded	855,628	133,038	648,487
Total Impaired Loans/Leases:
Average Recorded Investment	1,556,235	955,756	1,300,003
Residential Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	1,014,286	1,057,657	1,137,735
Interest Income Recognized - No Allownace Recorded	720		2,175
Interest Income Recognized for Cahs Payments Received - No Allownace Recorded	720		2,175
Impaired Loans/Leases with Specific Allowance Recorded:
Average Recorded Investment - Allowance Recorded	779,104	302,334	767,008
Interest Income Recognized - Allowance Recorded	4		778
Interest Income Recognized for Cahs Payments Received - Allowance Recorded	4		778
Total Impaired Loans/Leases:
Average Recorded Investment	1,793,390	1,359,991	1,904,743
Interest Income Recognized	724		2,953
Interest Income Recognized for Cahs Payments Received	724		2,953
Consumer Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	465,820	915,478	501,576
Interest Income Recognized - No Allownace Recorded	890	2,686	1,780
Interest Income Recognized for Cahs Payments Received - No Allownace Recorded	890	2,686	1,780
Impaired Loans/Leases with Specific Allowance Recorded:
Average Recorded Investment - Allowance Recorded	817,994	430,427	788,112
Total Impaired Loans/Leases:
Average Recorded Investment	1,283,814	1,345,905	1,289,688
Interest Income Recognized	890	2,686	1,780
Interest Income Recognized for Cahs Payments Received	$ 890	$ 2,686	$ 1,780

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Note 8 - Derivatives and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

Effective Date	Maturity Date	Balance Sheet Location	Notional Amount		Accounting Treatment	Fair Value
June 5, 2014	June 5, 2019	Other Assets	$	15,000,000	Cash Flow Hedging	$	707,710
June 5, 2014	June 5, 2021	Other Assets		15,000,000	Cash Flow Hedging		1,112,791
			$	30,000,000		$	1,820,501

Reclassification out of Accumulated Other Comprehensive Income [Table Text Block]

	Three and Six Months Ended June 30, 2014
Unrealized loss at beginning of period	$	-
Amount reclassified from accumulated other comprehensive income to interest expense on FHLB Advances		-
Amount of loss recognized in other comprehensive income		(251,149	)
Unrealized loss at end of period	$	(251,149	)

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) (USD $)	3 Months Ended
	Jun. 30, 2014 Series F Noncumulative Perpetual Preferred Stock Redemption Two[Member] Preferred Stock [Member]	Mar. 31, 2014 Series F Noncumulative Perpetual Preferred Stock Redemption Two[Member] Preferred Stock [Member]	Jun. 30, 2014 Common Stock [Member]	Mar. 31, 2014 Common Stock [Member]	Jun. 30, 2013 Common Stock [Member]	Mar. 31, 2013 Common Stock [Member]
Redemption, shares	14,867	15,000
Share issuance, Employee Stock Purchase Plan			8,361	6,189	9,560	5,884
Share issuance, stock options exercised			630	9,814	3,769	19,278
Share exchange in connection with restricted stock				10,300		16,798
Share exchange, stock options exercised						7,048
Share issuance, acquisition					834,715

XML

Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Preferred stock, par value (in Dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	250,000	250,000
Preferred stock, shares issued	0	29,867
Preferred stock, shares outstanding	0	29,867
Common stock, par value (in Dollars per share)	$ 1	$ 1
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	8,049,889	8,005,708
Common stock, shares outstanding	7,928,643	7,884,462
Treasury Stock, shares	121,246	121,246

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Note 8 - Derivatives and Hedging Activities

6 Months Ended

Jun. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 8 – DERIVATIVES AND HEDGING ACTIVITIES

The Company enters into derivative financial instruments as part of its strategy to manage its exposure to changes in interest rates.

Derivative instruments represent contracts between parties that result in one party delivering cash to the other party based on a notional amount and an underlying index (such as a rate, security price or price index) as specified in the contract. The amount of cash delivered from one party to the other is determined based on the interaction of the notional amount of the contract with the underlying index.

The derivative financial instruments currently used by the Company to manage its exposure to interest rate risk include: (1) interest rate lock commitments provided to customers to fund certain mortgage loans to be sold into the secondary market (although this type of derivative is negligible); and (2) interest rate caps to manage the interest rate risk of certain fixed and variable rate assets and variable rate liabilities. This footnote will address the latter.

During the second quarter of 2014, the Company executed and designated two interest rate cap derivatives as cash flow hedges of short-term FHLB advances. The short-term FHLB advances rates will fluctuate with rate movements; therefore the Bank determined it was necessary to hedge against this increase in interest expense in a rising rate environment. The caps purchased will essentially set a ceiling on the rate paid on the FHLB advances, minimizing the risk associated with rate increases.

Below is a summary of the interest rate cap derivatives held by the Company as of June 30, 2014. An initial premium of $2.1 million was paid for the two caps. The fair value of these assets will fluctuate with market value changes, as well as amortization of the initial premium to interest expense.

Effective Date	Maturity Date	Balance Sheet Location	Notional Amount		Accounting Treatment	Fair Value
June 5, 2014	June 5, 2019	Other Assets	$	15,000,000	Cash Flow Hedging	$	707,710
June 5, 2014	June 5, 2021	Other Assets		15,000,000	Cash Flow Hedging		1,112,791
			$	30,000,000		$	1,820,501

Changes in the fair values of derivative financial instruments accounted for as cash flow hedges, to the extent they are effective hedges, are recorded as a component of accumulated other comprehensive income. The following is a summary of how accumulated other comprehensive income was impacted during the reporting periods:

	Three and Six Months Ended June 30, 2014
Unrealized loss at beginning of period	$	-
Amount reclassified from accumulated other comprehensive income to interest expense on FHLB Advances		-
Amount of loss recognized in other comprehensive income		(251,149	)
Unrealized loss at end of period	$	(251,149	)

Changes in the fair value related to the ineffective portion of cash flow hedges are reported in non-interest income during the period of the change. No portion of the change in fair value, both for the current period and year-to-date, was due to ineffectiveness.

Derivative financial instruments are valued by the transaction counterparty on a monthly basis and corroborated by a third party annually. The company uses the hypothetical derivative method to assess and measure effectiveness in accordance with ASC 815, Derivatives and Hedging.

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Document And Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 01, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	QCR HOLDINGS INC
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		7,928,643
Amendment Flag	false
Entity Central Index Key	0000906465
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q2

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Accounting Policies, by Policy (Policies)

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

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, 2013, included in QCR Holdings, Inc.’s (the “Company”) Form 10-K filed with the Securities and Exchange Commission on March 10, 2014. 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 U.S. generally accepted accounting principles 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 June 30, 2014, are not necessarily indicative of the results expected for the year ending December 31, 2014.

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries which include three commercial banks: Quad City Bank & Trust Company (“QCBT”), Cedar Rapids Bank & Trust Company (“CRBT”), and Rockford Bank & Trust Company (“RB&T”). On May 13, 2013, the Company acquired Community National Bancorporation (“Community National”) and its banking subsidiary Community National Bank (“CNB”). The Company operated CNB as a separate banking charter from the acquisition date until October 26, 2013, when CNB’s charter was merged with and into CRBT. CNB’s merged branch offices operate as a division of CRBT under the name of “Community Bank & Trust”. QCBT, CRBT, and RB&T are all state-chartered commercial banks. The Company also engages in direct financing lease contracts through m2 Lease Funds, LLC (“m2 Lease Funds”), a wholly-owned subsidiary of QCBT. All material intercompany transactions and balances have been eliminated in consolidation.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent accounting developments: In January 2014, FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The objective of ASU 2014-04 is to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU 2014-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Management is in the process of evaluating the impact of ASU 2014-04 on the Company’s consolidated financial statements.

In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective on January 1, 2017 and is not expected to have a significant impact on the Company’s financial statements.

In June 2014, FASB issued ASU 2014-11, Transfers and Servicing. ASU 2014-11 requires that repurchase-to-maturity transactions be accounted for as secured borrowings, consistent with the accounting for other repurchase agreements. In addition, ASU 2014-11 requires separate accounting for repurchase financings, which entail the transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty. The standard requires entities to disclose certain information about transfers accounted for as sales in transactions that are economically similar to repurchase agreements. In addition, ASU 2014-11 requires disclosures related to collateral and remaining tenor and of the potential risks associated with repurchase agreements, securities lending transactions and repurchase-to-maturity transactions. ASU 2014-11 is effective on January 1, 2015 and is not expected to have a significant impact on the Company’s consolidated financial statements.

Reclassification, Policy [Policy Text Block]

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

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Consolidated Statements of Income (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Interest and dividend income:
Loans/leases, including fees	$ 16,868,806	$ 16,369,605	$ 33,644,396	$ 31,458,432
Securities:
Taxable	2,573,649	2,629,832	5,156,443	5,090,281
Nontaxable	1,448,415	944,100	2,902,471	1,746,573
Interest-bearing deposits at financial institutions	71,243	61,724	161,770	121,478
Restricted investment securities	139,570	131,151	268,495	256,256
Federal funds sold	3,693	2,989	7,012	3,863
Total interest and dividend income	21,105,376	20,139,401	42,140,587	38,676,883
Interest expense:
Deposits	1,101,615	1,176,855	2,203,208	2,293,646
Short-term borrowings	60,811	103,435	112,507	167,702
Federal Home Loan Bank advances	1,495,980	1,726,622	3,051,956	3,459,434
Other borrowings	1,174,594	1,162,893	2,346,125	2,353,648
Junior subordinated debentures	307,033	261,544	612,207	503,084
Total interest expense	4,140,033	4,431,349	8,326,003	8,777,514
Net interest income	16,965,343	15,708,052	33,814,584	29,899,369
Provision for loan/lease losses	1,001,879	1,520,137	2,096,041	2,577,919
Net interest income after provision for loan/lease losses	15,963,464	14,187,915	31,718,543	27,321,450
Noninterest income:
Trust department fees	1,444,414	1,197,181	2,944,756	2,236,851
Investment advisory and management fees	710,858	695,094	1,359,850	1,304,435
Deposit service fees	1,091,923	1,054,223	2,137,808	1,962,046
Gains on sales of residential real estate loans	132,971	246,621	196,458	537,772
Gains on sales government guaranteed portions of loans	508,168	765,738	702,187	1,610,962
Securities gains	571	16,460	21,196	16,460
Earnings on bank-owned life insurance	388,672	423,883	842,836	862,570
Bargain purchase gain on Community National Acquisition		1,841,385		1,841,385
Losses on other real estate owned, net	(126,657)	(83,339)	(144,705)	(529,969)
Other	1,193,293	791,510	2,030,668	2,310,273
Total noninterest income	5,344,213	6,948,756	10,091,054	12,152,785
Noninterest expense:
Salaries and employee benefits	9,922,191	9,186,233	19,940,109	17,928,916
Occupancy and equipment expense	1,838,971	1,586,841	3,733,259	3,015,711
Professional and data processing fees	1,403,915	1,438,753	2,988,321	2,578,814
FDIC and other insurance	695,365	627,390	1,410,115	1,183,301
Loan/lease expense	377,492	251,868	723,128	496,959
Advertising and marketing	501,548	412,041	839,135	676,609
Postage and telephone	258,121	257,611	548,796	476,302
Stationery and supplies	145,635	150,718	297,386	261,388
Bank service charges	324,397	284,345	622,429	559,840
Acquisition and data conversion costs		432,326		788,904
Other	638,894	606,223	1,144,271	1,226,105
Total noninterest expense	16,106,529	15,234,349	32,246,949	29,192,849
Net income before income taxes	5,201,148	5,902,322	9,562,648	10,281,386
Federal and state income tax expense	1,193,312	1,857,091	1,665,597	2,971,011
Net income	4,007,836	4,045,231	7,897,051	7,310,375
Less: Preferred stock dividends	373,869	810,838	1,081,877	1,621,675
Net income attributable to QCR Holdings, Inc. common stockholders	$ 3,633,967	$ 3,234,393	$ 6,815,174	$ 5,688,700
Earnings per common share attributable to QCR Holdings, Inc. common shareholders
Basic (in Dollars per share)	$ 0.46	$ 0.60	$ 0.86	$ 1.10
Diluted (in Dollars per share)	$ 0.45	$ 0.59	$ 0.85	$ 1.08
Weighted average common shares outstanding (in Shares)	7,924,624	5,393,062	7,912,830	5,160,327
Weighted average common and common equivalent shares outstanding (in Shares)	8,050,514	5,497,275	8,040,279	5,265,809
Cash dividends declared per common share (in Dollars per share)	$ 0.04	$ 0.04	$ 0.04	$ 0.04

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Note 3 - Loans/Leases Receivable

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Financing Receivables [Text Block]

NOTE 3 – LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of June 30, 2014 and December 31, 2013 is presented as follows:

	As of June 30,			As of December 31,
	2014			2013
Commercial and industrial loans	$	480,494,321		$	431,688,129
Commercial real estate loans
Owner-occupied commercial real estate		247,596,151			261,215,912
Commercial construction, land development, and other land		58,042,089			57,844,902
Other non owner-occupied commercial real estate		377,737,501			352,692,115
		683,375,741			671,752,929
Direct financing leases *		155,004,018			128,901,442
Residential real estate loans **		153,199,719			147,356,323
Installment and other consumer loans		71,443,399			76,033,810
		1,543,517,198			1,455,732,633
Plus deferred loan/lease origination costs, net of fees		5,850,551			4,546,925
		1,549,367,749			1,460,279,558
Less allowance for estimated losses on loans/leases		(23,067,024	)		(21,448,048	)
	$	1,526,300,725		$	1,438,831,510
* Direct financing leases:
Net minimum lease payments to be received	$	175,772,051		$	145,662,254
Estimated unguaranteed residual values of leased assets		1,642,309			1,694,499
Unearned lease/residual income		(22,410,342	)		(18,455,311	)
		155,004,018			128,901,442
Plus deferred lease origination costs, net of fees		5,935,700			4,814,183
		160,939,718			133,715,625
Less allowance for estimated losses on leases		(3,319,131	)		(2,517,217	)
	$	157,620,587		$	131,198,408

*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 and 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 large 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. There were no losses related to residual values for the three and six months ended June 30, 2014 and 2013.

**Includes residential real estate loans held for sale totaling $1,302,175 and $1,358,290 as of June 30, 2014, and December 31, 2013, respectively.

The aging of the loan/lease portfolio by classes of loans/leases as of June 30, 2014 and December 31, 2013 is presented as follows:

	As of June 30, 2014
Classes of Loans/Leases	Current			30-59 Days Past Due			60-89 Days Past Due			Accruing Past Due 90 Days or More			Nonaccrual Loans/Leases			Total
Commercial and Industrial	$	478,425,272		$	162,344		$	110,714		$	41,950		$	1,754,041		$	480,494,321
Commercial Real Estate
Owner-Occupied Commercial Real Estate		244,861,764			81,356			1,380,715			39,852			1,232,464			247,596,151
Commercial Construction, Land Development, and Other Land		56,324,561			1,086,827			-			-			630,701			58,042,089
Other Non Owner-Occupied Commercial Real Estate		366,941,393			924,340			18,800			-			9,852,968			377,737,501
Direct Financing Leases		151,796,790			599,582			802,650			13,167			1,791,829			155,004,018
Residential Real Estate		151,334,965			65,549			347,400			-			1,451,805			153,199,719
Installment and Other Consumer		70,353,793			94,038			49,196			8,646			937,726			71,443,399
	$	1,520,038,538		$	3,014,036		$	2,709,475		$	103,615		$	17,651,534		$	1,543,517,198
As a percentage of total loan/lease portfolio		98.48	%		0.20	%		0.18	%		0.01	%		1.14	%		100.00	%

	As of December 31, 2013
Classes of Loans/Leases	Current			30-59 Days Past Due			60-89 Days Past Due			Accruing Past Due 90 Days or More			Nonaccrual Loans/Leases			Total
Commercial and Industrial	$	429,557,699		$	199,949		$	185,500		$	-		$	1,744,981		$	431,688,129
Commercial Real Estate
Owner-Occupied Commercial Real Estate		258,557,660			465,418			993,163			60,286			1,139,385			261,215,912
Commercial Construction, Land Development, and Other Land		56,301,186			358,626			-			-			1,185,090			57,844,902
Other Non Owner-Occupied Commercial Real Estate		341,743,730			476,877			151,017			-			10,320,491			352,692,115
Direct Financing Leases		126,878,515			714,464			414,005			-			894,458			128,901,442
Residential Real Estate		142,353,936			3,088,516			275,262			20,126			1,618,483			147,356,323
Installment and Other Consumer		74,811,489			127,082			116,468			3,762			975,009			76,033,810
	$	1,430,204,215		$	5,430,932		$	2,135,415		$	84,174		$	17,877,897		$	1,455,732,633
As a percentage of total loan/lease portfolio		98.25	%		0.37	%		0.15	%		0.01	%		1.23	%		100.00	%

Nonperforming loans/leases by classes of loans/leases as of June 30, 2014 and December 31, 2013 are presented as follows:

	As of June 30, 2014
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases *		Troubled Debt Restructurings - Accruing		Total Nonperforming Loans/Leases		Percentage of Total Nonperforming Loans/Leases
Commercial and Industrial	$	41,950	$	1,754,041	$	1,483,846	$	3,279,837		16.45	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		39,852		1,232,464		-		1,272,316		6.38	%
Commercial Construction, Land Development, and Other Land		-		630,701		-		630,701		3.16	%
Other Non Owner-Occupied Commercial Real Estate		-		9,852,968		-		9,852,968		49.41	%
Direct Financing Leases		13,167		1,791,829		-		1,804,996		9.05	%
Residential Real Estate		-		1,451,805		343,322		1,795,127		9.00	%
Installment and Other Consumer		8,646		937,726		357,000		1,303,372		6.54	%
	$	103,615	$	17,651,534	$	2,184,168	$	19,939,317		100.00	%

*Nonaccrual loans/leases includes $9,778,112 of troubled debt restructurings, including $83,922 in commercial and industrial loans, $8,897,061 in commercial real estate loans, $156,800 in direct financing leases, $443,224 in residential real estate loans, and $197,105 in installment loans.

	As of December 31, 2013
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases **		Troubled Debt Restructurings - Accruing		Total Nonperforming Loans/Leases		Percentage of Total Nonperforming Loans/Leases
Commercial and Industrial	$	-	$	1,744,981	$	878,381	$	2,623,362		12.81	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		60,286		1,139,385		-		1,199,671		5.86	%
Commercial Construction, Land Development, and Other Land		-		1,185,090		-		1,185,090		5.79	%
Other Non Owner-Occupied Commercial Real Estate		-		10,320,491		905,205		11,225,696		54.80	%
Direct Financing Leases		-		894,458		-		894,458		4.37	%
Residential Real Estate		20,126		1,618,483		371,995		2,010,604		9.82	%
Installment and Other Consumer		3,762		975,009		367,000		1,345,771		6.57	%
	$	84,174	$	17,877,897	$	2,522,581	$	20,484,652		100.00	%

**Nonaccrual loans/leases includes $10,890,785 of troubled debt restructurings, including $77,072 in commercial and industrial loans, $10,077,501 in commercial real estate loans, $446,996 in residential real estate loans, and $289,216 in installment loans.

Changes in the allowance for estimated losses on loans/leases by portfolio segment for the three and six months ended June 30, 2014 and 2013, respectively, are presented as follows:

	Three Months Ended June 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	6,647,658		$	10,587,657		$	2,820,239		$	1,388,885		$	1,208,831		$	22,653,270
Provisions (credits) charged to expense		101,718			(33,506	)		566,374			101,030			266,263			1,001,879
Loans/leases charged off		(222,057	)		(311,453	)		(78,755	)		(50,730	)		(12,982	)		(675,977	)
Recoveries on loans/leases previously charged off		22,059			34,994			11,273			-			19,526			87,852
Balance, ending	$	6,549,378		$	10,277,692		$	3,319,131		$	1,439,185		$	1,481,638		$	23,067,024

	Three Months Ended June 30, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate		Installment and Other Consumer			Total
Balance, beginning	$	4,466,264		$	12,188,953		$	2,296,523		$	966,336	$	851,386		$	20,769,462
Provisions (credits) charged to expense		348,298			672,077			340,137			195,774		(36,149	)		1,520,137
Loans/leases charged off		(38,685	)		(820,725	)		(449,622	)		-		(23,875	)		(1,332,907	)
Recoveries on loans/leases previously charged off		14,951			150,192			567			3,231		30,746			199,687
Balance, ending	$	4,790,828		$	12,190,497		$	2,187,605		$	1,165,341	$	822,108		$	21,156,379

	Six Months Ended June 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	5,648,774		$	10,705,434		$	2,517,217		$	1,395,849		$	1,180,774		$	21,448,048
Provisions (credits) charged to expense		1,078,508			(263,491	)		919,021			96,675			265,328			2,096,041
Loans/leases charged off		(226,080	)		(315,551	)		(144,488	)		(53,442	)		(15,737	)		(755,298	)
Recoveries on loans/leases previously charged off		48,176			151,300			27,381			103			51,273			278,233
Balance, ending	$	6,549,378		$	10,277,692		$	3,319,131		$	1,439,185		$	1,481,638		$	23,067,024

	Six Months Ended June 30, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	4,531,545		$	11,069,502		$	1,990,395		$	1,070,328		$	1,263,434		$	19,925,204
Provisions (credits) charged to expense		260,491			1,786,371			718,760			204,673			(392,376	)		2,577,919
Loans/leases charged off		(38,900	)		(820,725	)		(522,671	)		(112,891	)		(140,487	)		(1,635,674	)
Recoveries on loans/leases previously charged off		37,692			155,349			1,121			3,231			91,537			288,930
Balance, ending	$	4,790,828		$	12,190,497		$	2,187,605		$	1,165,341		$	822,108		$	21,156,379

The allowance for estimated losses on loans/leases by impairment evaluation and by portfolio segment as of June 30, 2014 and December 31, 2013 is presented as follows:

	As of June 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for loans/leases individually evaluated for impairment	$	848,593		$	2,567,526		$	534,043		$	237,358		$	471,025		$	4,658,545
Allowance for loans/leases collectively evaluated for impairment		5,700,785			7,710,166			2,785,088			1,201,827			1,010,613			18,408,479
	$	6,549,378		$	10,277,692		$	3,319,131		$	1,439,185		$	1,481,638		$	23,067,024
Loans/leases individually evaluated for impairment	$	2,104,768		$	11,264,502		$	1,791,828		$	1,795,128		$	1,294,726		$	18,250,952
Loans/leases collectively evaluated for impairment		478,389,553			672,111,239			153,212,190			151,404,591			70,148,673			1,525,266,246
	$	480,494,321		$	683,375,741		$	155,004,018		$	153,199,719		$	71,443,399		$	1,543,517,198
Allowance as a percentage of loans/leases individually evaluated for impairment		40.32	%		22.79	%		29.80	%		13.22	%		36.38	%		25.52	%
Allowance as a percentage of loans/leases collectively evaluated for impairment		1.19	%		1.15	%		1.82	%		0.79	%		1.44	%		1.21	%
		1.36	%		1.50	%		2.14	%		0.94	%		2.07	%		1.49	%

	As of December 31, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for loans/leases individually evaluated for impairment	$	927,453		$	3,174,704		$	192,847		$	246,266		$	467,552		$	5,008,822
Allowance for loans/leases collectively evaluated for impairment		4,721,321			7,530,730			2,324,370			1,149,583			713,222			16,439,226
	$	5,648,774		$	10,705,434		$	2,517,217		$	1,395,849		$	1,180,774		$	21,448,048
Loans/leases individually evaluated for impairment	$	1,761,850		$	12,956,915		$	894,458		$	2,116,747		$	1,350,450		$	19,080,420
Loans/leases collectively evaluated for impairment		429,926,279			658,796,014			128,006,984			145,239,576			74,683,360			1,436,652,213
	$	431,688,129		$	671,752,929		$	128,901,442		$	147,356,323		$	76,033,810		$	1,455,732,633
Allowance as a percentage of loans/leases individually evaluated for impairment		52.64	%		24.50	%		21.56	%		11.63	%		34.62	%		26.25	%
Allowance as a percentage of loans/leases collectively evaluated for impairment		1.10	%		1.14	%		1.82	%		0.79	%		0.95	%		1.14	%
		1.31	%		1.59	%		1.95	%		0.95	%		1.55	%		1.47	%

Information for impaired loans/leases is presented in the tables below. The recorded investment represents customer balances net of any partial charge-offs recognized on the loan/lease. The unpaid principal balance represents the recorded balance outstanding on the loan/lease prior to any partial charge-offs.

Loans/leases, by classes of financing receivable, considered to be impaired as of and for the six months ended June 30, 2014 are presented as follows:

Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received
Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	575,419	$	730,020	$	-	$	631,165	$	1,899	$	1,899
Commercial Real Estate
Owner-Occupied Commercial Real Estate		380,931		380,931		-		410,136		-		-
Commercial Construction, Land Development, and Other Land		1,622,016		1,856,416		-		1,923,766		-		-
Other Non Owner-Occupied Commercial Real Estate		1,941,116		1,941,116		-		2,695,138		13,283		13,283
Direct Financing Leases		793,247		793,247		-		651,516		-		-
Residential Real Estate		954,464		954,464		-		1,137,735		2,175		2,175
Installment and Other Consumer		457,611		457,611		-		501,576		1,780		1,780
	$	6,724,804	$	7,113,805	$	-	$	7,951,032	$	19,137	$	19,137
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	1,529,349	$	2,049,051	$	848,593	$	855,050	$	-	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		552,923		552,923		176,287		223,337		-		-
Commercial Construction, Land Development, and Other Land		600,920		600,920		461,671		605,198		-		-
Other Non Owner-Occupied Commercial Real Estate		6,166,596		6,866,187		1,929,568		5,974,240		-		-
Direct Financing Leases		998,581		998,581		534,043		648,487		-		-
Residential Real Estate		840,664		840,664		237,358		767,008		778		778
Installment and Other Consumer		837,115		837,115		471,025		788,112		-		-
	$	11,526,148	$	12,745,441	$	4,658,545	$	9,861,432	$	778	$	778
Total Impaired Loans/Leases:
Commercial and Industrial	$	2,104,768	$	2,779,071	$	848,593	$	1,486,215	$	1,899	$	1,899
Commercial Real Estate
Owner-Occupied Commercial Real Estate		933,854		933,854		176,287		633,473		-		-
Commercial Construction, Land Development, and Other Land		2,222,936		2,457,336		461,671		2,528,964		-		-
Other Non Owner-Occupied Commercial Real Estate		8,107,712		8,807,303		1,929,568		8,669,378		13,283		13,283
Direct Financing Leases		1,791,828		1,791,828		534,043		1,300,003		-		-
Residential Real Estate		1,795,128		1,795,128		237,358		1,904,743		2,953		2,953
Installment and Other Consumer		1,294,726		1,294,726		471,025		1,289,688		1,780		1,780
	$	18,250,952	$	19,859,246	$	4,658,545	$	17,812,464	$	19,915	$	19,915

Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates.

Loans/leases, by classes of financing receivable, considered to be impaired as of and for the three months ended June 30, 2014 and 2013, respectively, are presented as follows:

	Three Months Ended June 30, 2014						Three Months Ended June 30, 2013
Classes of Loans/Leases	Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received
Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	589,889	$	11	$	11	$	613,506	$	1,937	$	1,937
Commercial Real Estate						-
Owner-Occupied Commercial Real Estate		383,861		-		-		3,107,106		-		-
Commercial Construction, Land Development, and Other Land		1,642,205		-		-		325,000		-		-
Other Non Owner-Occupied Commercial Real Estate		2,222,582		-		-		353,972		657		657
Direct Financing Leases		700,607		-		-		822,718		-		-
Residential Real Estate		1,014,286		720		720		1,057,657		-		-
Installment and Other Consumer		465,820		890		890		915,478		2,686		2,686
	$	7,019,250	$	1,621	$	1,621	$	7,195,437	$	5,280	$	5,280
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	989,979	$	-	$	-	$	1,229,737	$	15,307	$	15,307
Commercial Real Estate						-
Owner-Occupied Commercial Real Estate		334,236		-		-		653,815		-		-
Commercial Construction, Land Development, and Other Land		602,498		-		-		3,656,226		2,716		2,716
Other Non Owner-Occupied Commercial Real Estate		6,057,384		-		-		10,143,708		-		-
Direct Financing Leases		855,628		-		-		133,038		-		-
Residential Real Estate		779,104		4		4		302,334		-		-
Installment and Other Consumer		817,994		-		-		430,427		-		-
	$	10,436,823	$	4	$	4	$	16,549,285	$	18,023	$	18,023
Total Impaired Loans/Leases:
Commercial and Industrial	$	1,579,868	$	11	$	11	$	1,843,243	$	17,244	$	17,244
Commercial Real Estate
Owner-Occupied Commercial Real Estate		718,097		-		-		3,760,921		-		-
Commercial Construction, Land Development, and Other Land		2,244,703		-		-		3,981,226		2,716		2,716
Other Non Owner-Occupied Commercial Real Estate		8,279,966		-		-		10,497,680		657		657
Direct Financing Leases		1,556,235		-		-		955,756		-		-
Residential Real Estate		1,793,390		724		724		1,359,991		-		-
Installment and Other Consumer		1,283,814		890		890		1,345,905		2,686		2,686
	$	17,456,073	$	1,625	$	1,625	$	23,744,722	$	23,303	$	23,303

Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates.

Loans/leases, by classes of financing receivable, considered to be impaired as of December 31, 2013 are presented as follows:

Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	492,622	$	568,951	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		392,542		392,542		-
Commercial Construction, Land Development, and Other Land		1,943,168		2,054,368		-
Other Non Owner-Occupied Commercial Real Estate		1,790,279		1,902,279		-
Direct Financing Leases		557,469		557,469		-
Residential Real Estate		1,071,927		1,071,927		-
Installment and Other Consumer		509,667		509,667		-
	$	6,757,674	$	7,057,203	$	-
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	1,269,228	$	1,956,755	$	927,453
Commercial Real Estate
Owner-Occupied Commercial Real Estate		159,247		159,247		67,498
Commercial Construction, Land Development, and Other Land		888,547		1,011,747		503,825
Other Non Owner-Occupied Commercial Real Estate		7,783,132		8,488,414		2,603,381
Direct Financing Leases		336,989		336,989		192,847
Residential Real Estate		1,044,820		1,044,820		246,266
Installment and Other Consumer		840,783		840,783		467,552
	$	12,322,746	$	13,838,755	$	5,008,822
Total Impaired Loans/Leases:
Commercial and Industrial	$	1,761,850	$	2,525,706	$	927,453
Commercial Real Estate
Owner-Occupied Commercial Real Estate		551,789		551,789		67,498
Commercial Construction, Land Development, and Other Land		2,831,715		3,066,115		503,825
Other Non Owner-Occupied Commercial Real Estate		9,573,411		10,390,693		2,603,381
Direct Financing Leases		894,458		894,458		192,847
Residential Real Estate		2,116,747		2,116,747		246,266
Installment and Other Consumer		1,350,450		1,350,450		467,552
	$	19,080,420	$	20,895,958	$	5,008,822

Impaired loans/leases for which no allowance has been provided have adequate collateral, based on management’s current estimates.

For commercial and industrial and commercial real estate loans, the Company’s credit quality indicator is internally assigned risk ratings. Each commercial 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 direct financing leases, residential real estate loans, and installment and other consumer loans, the Company’s credit quality indicator is performance determined by delinquency status. Delinquency status is updated daily by the Company’s loan system.

For each class of financing receivable, the following presents the recorded investment by credit quality indicator as of June 30, 2014 and December 31, 2013:

	As of June 30, 2014
			Commercial Real Estate
					Non Owner-Occupied
Internally Assigned Risk Rating	Commercial and Industrial		Owner-Occupied Commercial Real Estate		Commercial Construction, Land Development, and Other Land		Other Commercial Real Estate		Total
Pass (Ratings 1 through 5)	$	444,280,023	$	228,602,988	$	54,249,436	$	349,022,456	$	1,076,154,903
Special Mention (Rating 6)		22,616,136		10,214,621		-		1,475,286		34,306,043
Substandard (Rating 7)		13,598,162		8,778,542		3,792,653		27,239,759		53,409,116
Doubtful (Rating 8)		-		-		-		-		-
	$	480,494,321	$	247,596,151	$	58,042,089	$	377,737,501	$	1,163,870,062

	As of June 30, 2014
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total
Performing	$	153,199,022	$	151,404,592	$	70,140,027	$	374,743,641
Nonperforming		1,804,996		1,795,127		1,303,372		4,903,495
	$	155,004,018	$	153,199,719	$	71,443,399	$	379,647,136

	As of December 31, 2013
			Commercial Real Estate
					Non Owner-Occupied
Internally Assigned Risk Rating	Commercial and Industrial		Owner-Occupied Commercial Real Estate		Commercial Construction, Land Development, and Other Land		Other Commercial Real Estate		Total
Pass (Ratings 1 through 5)	$	407,294,743	$	250,028,731	$	51,868,919	$	326,168,882	$	1,035,361,275
Special Mention (Rating 6)		11,355,713		8,318,232		1,588,086		3,310,017		24,572,048
Substandard (Rating 7)		13,037,673		2,868,949		4,387,897		23,213,216		43,507,735
Doubtful (Rating 8)		-		-		-		-		-
	$	431,688,129	$	261,215,912	$	57,844,902	$	352,692,115	$	1,103,441,058

	As of December 31, 2013
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total
Performing	$	128,006,984	$	145,345,719	$	74,688,039	$	348,040,742
Nonperforming		894,458		2,010,604		1,345,771		4,250,833
	$	128,901,442	$	147,356,323	$	76,033,810	$	352,291,575

*Performing = loans/leases accruing and less than 90 days past due. Nonperforming = loans/leases on nonaccrual, accruing loans/leases that are greater than or equal to 90 days past due, and accruing troubled debt restructurings.

As of June 30, 2014 and December 31, 2013, troubled debt restructurings totaled $11,962,280 and $13,413,366, respectively.

For each class of financing receivable, the following presents the number and recorded investment of troubled debt restructurings, by type of concession, that were restructured during the three and six months ended June 30, 2014 and 2013. The difference between the pre-modification recorded investment and the post-modification recorded investment would be any partial charge-offs at the time of the restructuring.

	For the three months ended June 30, 2014								For the three months ended June 30, 2013
Classes of Loans/Leases	Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance		Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance
CONCESSION - Significant payment delay
Commercial and Industrial		3	$	889,154	$	889,154	$	239,783		-	$	-	$	-	$	-
Residential Real Estate		-	$	-	$	-	$	-		1	$	91,581	$	91,581	$	-
Installment and Other Consumer		-	$	-	$	-	$	-		1	$	370,000	$	370,000	$	-
		3	$	889,154	$	889,154	$	239,783		2	$	461,581	$	461,581	$	-
CONCESSION - Interest rate adjusted below market
Commercial Construction, Land Development, and Other Land		-	$	-	$	-	$	-		1	$	337,500	$	337,500	$	-
Residential Real Estate		-	$	-	$	-	$	-		1	$	160,627	$	160,627	$	-
		-	$	-	$	-	$	-		2	$	498,127	$	498,127	$	-
CONCESSION - Other
Commercial and Industrial		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
TOTAL		4	$	1,317,003	$	1,317,003	$	353,232		4	$	959,708	$	959,708	$	-

	For the six months ended June 30, 2014								For the six months ended June 30, 2013
Classes of Loans/Leases	Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance		Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance
CONCESSION - Significant payment delay
Commercial and Industrial		3	$	889,154	$	889,154	$	239,783		-	$	-	$	-	$	-
Owner-Occupied Commercial Real Estate		-	$	-	$	-	$	-		1	$	47,958	$	47,958	$	-
Direct Financing Leases		1	$	89,443	$	89,443	$	-		-	$	-	$	-	$	-
Residential Real Estate		-	$	-	$	-		-		1	$	91,581	$	91,581	$	-
Installment and Other Consumer		-	$	-	$	-		-		1	$	370,000	$	370,000	$	-
		4	$	978,597	$	978,597	$	239,783		3	$	509,539	$	509,539	$	-
CONCESSION - Interest rate adjusted below market
Commercial Construction, Land Development, and Other Land		-	$	-	$	-	$	-		1	$	337,500	$	337,500	$	-
Residential Real Estate		-	$	-	$	-	$	-		1	$	160,627	$	160,627	$	-
		-	$	-	$	-	$	-		2	$	498,127	$	498,127	$	-
CONCESSION - Extension of maturity
Commercial and Industrial		-	$	-	$	-	$	-		3	$	809,494	$	809,494	$	188,700
Direct Financing Leases		1	$	70,144	$	70,144	$	24,246		-	$	-	$	-	$	-
		1	$	70,144	$	70,144	$	24,246		3	$	809,494	$	809,494	$	188,700
CONCESSION - Other
Commercial and Industrial		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
TOTAL		6	$	1,476,590	$	1,476,590	$	377,478		8	$	1,817,160	$	1,817,160	$	188,700

Of the troubled debt restructurings reported above, four with a post-modification recorded investment totaling $168,751 were on nonaccrual as of June 30, 2014, and three with post-modification recorded investments totaling $178,007 were on nonaccrual as of June 30, 2013.

For the three and six months ended June 30, 2014 and 2013, none of the Company’s troubled debt restructurings had redefaulted within 12 months subsequent to restructure where default is defined as delinquency of 90 days or more and/or placement on nonaccrual status.

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Note 2 - Investment Securities

6 Months Ended

Jun. 30, 2014

Investment Holdings [Abstract]

Investment Holdings [Text Block]

NOTE 2 – INVESTMENT SECURITIES

The amortized cost and fair value of investment securities as of June 30, 2014 and December 31, 2013 are summarized as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		(Losses)			Value
June 30, 2014
Securities held to maturity:
Municipal securities	$	165,737,372	$	1,492,583	$	(2,609,628	)	$	164,620,327
Other securities		1,050,000		-		-			1,050,000
	$	166,787,372	$	1,492,583	$	(2,609,628	)	$	165,670,327
Securities available for sale:
U.S. govt. sponsored agency securities	$	334,083,927	$	109,470	$	(8,572,941	)	$	325,620,456
Residential mortgage-backed and related securities		152,965,071		2,200,301		(1,270,158	)		153,895,214
Municipal securities		32,871,334		1,156,141		(170,004	)		33,857,471
Other securities		1,401,827		560,129		-			1,961,956
	$	521,322,159	$	4,026,041	$	(10,013,103	)	$	515,335,097
December 31, 2013:
Securities held to maturity:
Municipal securities	$	144,401,895	$	299,789	$	(7,111,579	)	$	137,590,105
Other securities		1,050,000		-		-			1,050,000
	$	145,451,895	$	299,789	$	(7,111,579	)	$	138,640,105
Securities available for sale:
U.S. govt. sponsored agency securities	$	376,574,132	$	41,696	$	(20,142,841	)	$	356,472,987
Residential mortgage-backed and related securities		160,110,199		1,153,409		(3,834,157	)		157,429,451
Municipal securities		35,813,866		923,315		(778,324	)		35,958,857
Other securities		1,372,365		524,798		-			1,897,163
	$	573,870,562	$	2,643,218	$	(24,755,322	)	$	551,758,458

The Company’s held to maturity municipal securities consist largely of private issues of municipal debt. The municipalities are located within the Midwest with a portion in or adjacent to the communities of QCBT and CRBT. 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 commercial 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 June 30, 2014 and December 31, 2013, are summarized as follows:

	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
June 30, 2014:
Securities held to maturity:
Municipal securities	$	37,351,435	$	(982,726	)	$	47,726,709	$	(1,626,902	)	$	85,078,144	$	(2,609,628	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	284,171,721	$	(8,502,103	)	$	13,725,024	$	(70,838	)	$	297,896,745	$	(8,572,941	)
Residential mortgage-backed and related securities		8,124,317		(95,270	)		55,800,561		(1,174,888	)		63,924,878		(1,270,158	)
Municipal securities		8,765,260		(131,548	)		2,184,122		(38,456	)		10,949,382		(170,004	)
	$	301,061,298	$	(8,728,921	)	$	71,709,707	$	(1,284,182	)	$	372,771,005	$	(10,013,103	)
December 31, 2013:
Securities held to maturity:
Municipal securities	$	101,983,602	$	(6,711,240	)	$	2,697,375	$	(400,339	)	$	104,680,977	$	(7,111,579	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	333,194,820	$	(19,141,077	)	$	10,978,390	$	(1,001,764	)	$	344,173,210	$	(20,142,841	)
Residential mortgage-backed and related securities		94,723,092		(2,947,770	)		14,117,719		(886,387	)		108,840,811		(3,834,157	)
Municipal securities		13,890,692		(724,939	)		985,687		(53,385	)		14,876,379		(778,324	)
	$	441,808,604	$	(22,813,786	)	$	26,081,796	$	(1,941,536	)	$	467,890,400	$	(24,755,322	)

At June 30, 2014, the investment portfolio included 529 securities. Of this number, 259 securities had current unrealized losses with aggregate depreciation of less than 4% from the total amortized cost basis. Of these, 98 securities had an unrealized loss for twelve months or more. All of the debt securities in unrealized loss positions are considered acceptable credit risks. Based upon an evaluation of the available evidence, including the recent changes in market rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these debt securities are temporary. In addition, the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these debt securities before their anticipated recovery. At June 30, 2014 and December 31, 2013, equity securities represented less than 1% of the total portfolio.

The Company did not recognize other-than-temporary impairment on any debt or equity securities for the three and six months ended June 30, 2014 and 2013.

All sales of securities for the three and six months ended June 30, 2014 and 2013, respectively, were from securities identified as available for sale. Information on proceeds received, as well as pre-tax gross gains from sales on those securities is as follows:

	Three Months Ended				Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
Proceeds from sales of securities	$	18,856,953	$	6,167,531	$	25,877,578	$	6,167,531
Pre-tax gross gains from sales of securities		571		16,460		21,196		16,460

The amortized cost and fair value of securities as of June 30, 2014 by contractual maturity are shown below. Expected maturities of residential mortgage-backed and related securities may differ from contractual maturities because the residential mortgages underlying the residential mortgage-backed and related securities may be called or prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following table. “Other securities” available for sale are excluded from the maturity categories as there is no fixed maturity date for those securities.

	Amortized Cost		Fair Value
Securities held to maturity:
Due in one year or less	$	2,927,386	$	2,929,942
Due after one year through five years		10,861,031		10,874,917
Due after five years		152,998,955		151,865,468
	$	166,787,372	$	165,670,327
Securities available for sale:
Due in one year or less	$	4,485,092	$	4,498,204
Due after one year through five years		48,898,104		48,717,600
Due after five years		313,572,065		306,262,123
	$	366,955,261	$	359,477,927
Residential mortgage-backed and related securities		152,965,071		153,895,214
Other securities		1,401,827		1,961,956
	$	521,322,159	$	515,335,097

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

	Amortized Cost		Fair Value
Securities held to maturity:
Municipal securities	$	102,919,232	$	102,260,651
Securities available for sale:
U.S. govt. sponsored agency securities		271,663,942		264,421,214
Municipal securities		20,829,274		21,268,094
	$	292,493,216	$	285,689,308

XML

Note 6 - Fair Value (Tables)

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]

			Fair Value Measurements at Reporting Date Using
			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2014:
Securities available for sale:
U.S. govt. sponsored agency securities	$	325,620,456	$	-	$	325,620,456	$	-
Residential mortgage-backed and related securities		153,895,214		-		153,895,214		-
Municipal securities		33,857,471		-		33,857,471		-
Other securities		1,961,956		318,370		1,643,586		-
Derivative instruments		1,820,501		-		1,820,501		-
	$	517,155,598	$	318,370	$	516,837,228	$	-
December 31, 2013:
Securities available for sale:
U.S. govt. sponsored agency securities	$	356,472,987	$	-	$	356,472,987	$	-
Residential mortgage-backed and related securities		157,429,451		-		157,429,451		-
Municipal securities		35,958,857		-		35,958,857		-
Other securities		1,897,163		317,698		1,579,465		-
	$	551,758,458	$	317,698	$	551,440,760	$	-

			Fair Value Measurements at Reporting Date Using
	Fair Value		Level 1		Level 2		Level 3
June 30, 2014:
Impaired loans/leases	$	8,281,725	$	-	$	-	$	8,281,725
Other real estate owned		11,827,311		-		-		11,827,311
	$	20,109,036	$	-	$	-	$	20,109,036
December 31, 2013:
Impaired loans/leases	$	9,009,557	$	-	$	-	$	9,009,557
Other real estate owned		10,507,377		-		-		10,507,377
	$	19,516,934	$	-	$	-	$	19,516,934

Fair Value Inputs, Assets, Quantitative Information [Table Text Block]

	Quantitave Information about Level Fair Value Measurments
	Fair Value		Valuation Technique	Unobservable Input	Range
June 30, 2014:
Impaired loans/leases	$	8,281,725	Appraisal of collateral	Appraisal adjustments		-10.00% to -50.00	%
Other real estate owned		11,827,311	Appraisal of collateral	Appraisal adjustments		0.00% to -35.00	%

	Quantitave Information about Level Fair Value Measurments
	Fair Value		Valuation Technique	Unobservable Input	Range
December 31, 2013:
Impaired loans/leases	$	9,009,557	Appraisal of collateral	Appraisal adjustments		-10.00% to -50.00	%
Other real estate owned		10,507,377	Appraisal of collateral	Appraisal adjustments		0.00% to -35.00	%

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

	Fair Value	As of June 30, 2014				As of December 31, 2013
	Hierarchy	Carrying		Estimated		Carrying		Estimated
	Level	Value		Fair Value		Value		Fair Value
Cash and due from banks	Level 1	$	56,292,577	$	56,292,577	$	41,950,790	$	41,950,790
Federal funds sold	Level 2		20,490,000		20,490,000		39,435,000		39,435,000
Interest-bearing deposits at financial institutions	Level 2		36,786,049		36,786,049		33,044,917		33,044,917
Investment securities:
Held to maturity	Level 3		166,787,372		165,670,327		145,451,895		138,640,105
Available for sale	See Previous Table		517,155,598		517,155,598		551,758,458		551,758,458
Loans/leases receivable, net	Level 3		7,668,264		8,281,725		8,342,182		9,009,557
Loans/leases receivable, net	Level 2		1,518,632,461		1,521,236,736		1,430,489,328		1,441,952,443
Derivative Instruments	Level 2		1,820,501		1,820,501		-		-
Deposits:
Nonmaturity deposits	Level 2		1,291,304,395		1,291,304,395		1,256,209,352		1,256,209,352
Time deposits	Level 2		386,063,880		387,275,000		390,781,891		391,923,000
Short-term borrowings	Level 2		204,321,854		204,321,854		149,292,967		149,292,967
Federal Home Loan Bank advances	Level 2		222,900,000		235,770,000		231,350,000		241,623,000
Other borrowings	Level 2		151,452,927		162,038,000		142,448,362		152,761,000
Junior subordinated debentures	Level 2		40,356,154		28,332,467		40,289,830		28,094,228

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Note 2 - Investment Securities (Tables)

6 Months Ended

Jun. 30, 2014

Investment Holdings [Abstract]

Unrealized Gain (Loss) on Investments [Table Text Block]

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		(Losses)			Value
June 30, 2014
Securities held to maturity:
Municipal securities	$	165,737,372	$	1,492,583	$	(2,609,628	)	$	164,620,327
Other securities		1,050,000		-		-			1,050,000
	$	166,787,372	$	1,492,583	$	(2,609,628	)	$	165,670,327
Securities available for sale:
U.S. govt. sponsored agency securities	$	334,083,927	$	109,470	$	(8,572,941	)	$	325,620,456
Residential mortgage-backed and related securities		152,965,071		2,200,301		(1,270,158	)		153,895,214
Municipal securities		32,871,334		1,156,141		(170,004	)		33,857,471
Other securities		1,401,827		560,129		-			1,961,956
	$	521,322,159	$	4,026,041	$	(10,013,103	)	$	515,335,097
December 31, 2013:
Securities held to maturity:
Municipal securities	$	144,401,895	$	299,789	$	(7,111,579	)	$	137,590,105
Other securities		1,050,000		-		-			1,050,000
	$	145,451,895	$	299,789	$	(7,111,579	)	$	138,640,105
Securities available for sale:
U.S. govt. sponsored agency securities	$	376,574,132	$	41,696	$	(20,142,841	)	$	356,472,987
Residential mortgage-backed and related securities		160,110,199		1,153,409		(3,834,157	)		157,429,451
Municipal securities		35,813,866		923,315		(778,324	)		35,958,857
Other securities		1,372,365		524,798		-			1,897,163
	$	573,870,562	$	2,643,218	$	(24,755,322	)	$	551,758,458

Schedule of Unrealized Loss on Investments [Table Text Block]

	Less than 12 Months					12 Months or More					Total
			Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses
June 30, 2014:
Securities held to maturity:
Municipal securities	$	37,351,435	$	(982,726	)	$	47,726,709	$	(1,626,902	)	$	85,078,144	$	(2,609,628	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	284,171,721	$	(8,502,103	)	$	13,725,024	$	(70,838	)	$	297,896,745	$	(8,572,941	)
Residential mortgage-backed and related securities		8,124,317		(95,270	)		55,800,561		(1,174,888	)		63,924,878		(1,270,158	)
Municipal securities		8,765,260		(131,548	)		2,184,122		(38,456	)		10,949,382		(170,004	)
	$	301,061,298	$	(8,728,921	)	$	71,709,707	$	(1,284,182	)	$	372,771,005	$	(10,013,103	)
December 31, 2013:
Securities held to maturity:
Municipal securities	$	101,983,602	$	(6,711,240	)	$	2,697,375	$	(400,339	)	$	104,680,977	$	(7,111,579	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	333,194,820	$	(19,141,077	)	$	10,978,390	$	(1,001,764	)	$	344,173,210	$	(20,142,841	)
Residential mortgage-backed and related securities		94,723,092		(2,947,770	)		14,117,719		(886,387	)		108,840,811		(3,834,157	)
Municipal securities		13,890,692		(724,939	)		985,687		(53,385	)		14,876,379		(778,324	)
	$	441,808,604	$	(22,813,786	)	$	26,081,796	$	(1,941,536	)	$	467,890,400	$	(24,755,322	)

Realized Gain (Loss) on Investments [Table Text Block]

	Three Months Ended				Six Months Ended
	June 30, 2014		June 30, 2013		June 30, 2014		June 30, 2013
Proceeds from sales of securities	$	18,856,953	$	6,167,531	$	25,877,578	$	6,167,531
Pre-tax gross gains from sales of securities		571		16,460		21,196		16,460

Investments Classified by Contractual Maturity Date [Table Text Block]

	Amortized Cost		Fair Value
Securities held to maturity:
Due in one year or less	$	2,927,386	$	2,929,942
Due after one year through five years		10,861,031		10,874,917
Due after five years		152,998,955		151,865,468
	$	166,787,372	$	165,670,327
Securities available for sale:
Due in one year or less	$	4,485,092	$	4,498,204
Due after one year through five years		48,898,104		48,717,600
Due after five years		313,572,065		306,262,123
	$	366,955,261	$	359,477,927
Residential mortgage-backed and related securities		152,965,071		153,895,214
Other securities		1,401,827		1,961,956
	$	521,322,159	$	515,335,097

	Amortized Cost		Fair Value
Securities held to maturity:
Municipal securities	$	102,919,232	$	102,260,651
Securities available for sale:
U.S. govt. sponsored agency securities		271,663,942		264,421,214
Municipal securities		20,829,274		21,268,094
	$	292,493,216	$	285,689,308

XML

Note 6 - Fair Value

6 Months Ended

Jun. 30, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

NOTE 6 – FAIR VALUE

Accounting guidance on fair value measurement uses a hierarchy intended to maximize the use of observable inputs and minimize the use of unobservable inputs. This hierarchy includes three levels and is based upon the valuation techniques used to measure assets and liabilities. The three levels are as follows:

● Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in markets;

● Level 2 – Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument; and

● Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Assets measured at fair value on a recurring basis comprise the following at June 30, 2014 and December 31, 2013:

			Fair Value Measurements at Reporting Date Using
			Quoted Prices		Significant
			in Active		Other		Significant
			Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2014:
Securities available for sale:
U.S. govt. sponsored agency securities	$	325,620,456	$	-	$	325,620,456	$	-
Residential mortgage-backed and related securities		153,895,214		-		153,895,214		-
Municipal securities		33,857,471		-		33,857,471		-
Other securities		1,961,956		318,370		1,643,586		-
Derivative instruments		1,820,501		-		1,820,501		-
	$	517,155,598	$	318,370	$	516,837,228	$	-
December 31, 2013:
Securities available for sale:
U.S. govt. sponsored agency securities	$	356,472,987	$	-	$	356,472,987	$	-
Residential mortgage-backed and related securities		157,429,451		-		157,429,451		-
Municipal securities		35,958,857		-		35,958,857		-
Other securities		1,897,163		317,698		1,579,465		-
	$	551,758,458	$	317,698	$	551,440,760	$	-

There were no transfers of assets or liabilities between Levels 1, 2, and 3 of the fair value hierarchy for the three and six months ended June 30, 2014 and 2013.

A small portion of the securities available for sale portfolio consists of common stock issued by various unrelated bank holding companies. The fair values used by the Company are obtained from an independent pricing service and represent quoted market prices for the identical securities (Level 1 inputs).

The remainder of the securities available for sale portfolio consists of securities whereby the Company obtains fair values from an independent pricing service. The fair values are determined by pricing models that consider observable market data, such as interest rate volatilities, LIBOR yield curve, credit spreads and prices from market makers and live trading systems (Level 2 inputs).

Derivative instruments consist of interest rate caps that are used for the purpose of hedging interest rate risk. See Note 8 to the Consolidated Financial Statements for the details of these instruments. The fair values are determined by pricing models that consider observable market data for derivative instruments with similar structures (Level 2 inputs).

Certain financial assets are measured at fair value on a non-recurring basis; that is, the assets are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment).

Assets measured at fair value on a non-recurring basis comprise the following at June 30, 2014 and December 31, 2013:

			Fair Value Measurements at Reporting Date Using
	Fair Value		Level 1		Level 2		Level 3
June 30, 2014:
Impaired loans/leases	$	8,281,725	$	-	$	-	$	8,281,725
Other real estate owned		11,827,311		-		-		11,827,311
	$	20,109,036	$	-	$	-	$	20,109,036
December 31, 2013:
Impaired loans/leases	$	9,009,557	$	-	$	-	$	9,009,557
Other real estate owned		10,507,377		-		-		10,507,377
	$	19,516,934	$	-	$	-	$	19,516,934

Impaired loans/leases are evaluated and valued at the time the loan/lease is identified as impaired, at the lower of cost or fair value, and are classified as Level 3 in the fair value hierarchy.  Fair value is measured based on the value of the collateral securing these loans/leases.  Collateral may be real estate and/or business assets, including equipment, inventory and/or accounts receivable, and is determined based on appraisals by qualified licensed appraisers hired by the Company.  Appraised and reported values may be discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the client and client’s business.  

Other real estate owned in the table above consists of property acquired through foreclosures and settlements of loans.  Property acquired is carried at the estimated fair value of the property, less disposal costs, and is classified as a Level 3 in the fair value hierarchy. The estimated fair value of the property is determined based on appraisals by qualified licensed appraisers hired by the Company.  Appraised and reported values are discounted based on management’s historical knowledge, changes in market conditions from the time of valuation, and/or management’s expertise and knowledge of the property.

The following table presents additional quantitative information about assets measured at fair value on a non-recurring basis for which the Company has utilized Level 3 inputs to determine fair value:

	Quantitave Information about Level Fair Value Measurments
	Fair Value		Valuation Technique	Unobservable Input	Range
June 30, 2014:
Impaired loans/leases	$	8,281,725	Appraisal of collateral	Appraisal adjustments		-10.00% to -50.00	%
Other real estate owned		11,827,311	Appraisal of collateral	Appraisal adjustments		0.00% to -35.00	%

	Quantitave Information about Level Fair Value Measurments
	Fair Value		Valuation Technique	Unobservable Input	Range
December 31, 2013:
Impaired loans/leases	$	9,009,557	Appraisal of collateral	Appraisal adjustments		-10.00% to -50.00	%
Other real estate owned		10,507,377	Appraisal of collateral	Appraisal adjustments		0.00% to -35.00	%

For the impaired loans/leases and other real estate owned, the Company records carrying value at fair value less disposal or selling costs. The amounts reported in the tables above are fair values before the adjustment for disposal or selling costs.

There have been no changes in valuation techniques used for any assets measured at fair value during the three and six months ended June 30, 2014 and 2013.

The following table presents the carrying values and estimated fair values of financial assets and liabilities carried on the Company’s consolidated balance sheets, including those financial assets and liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis:

	Fair Value	As of June 30, 2014				As of December 31, 2013
	Hierarchy	Carrying		Estimated		Carrying		Estimated
	Level	Value		Fair Value		Value		Fair Value
Cash and due from banks	Level 1	$	56,292,577	$	56,292,577	$	41,950,790	$	41,950,790
Federal funds sold	Level 2		20,490,000		20,490,000		39,435,000		39,435,000
Interest-bearing deposits at financial institutions	Level 2		36,786,049		36,786,049		33,044,917		33,044,917
Investment securities:
Held to maturity	Level 3		166,787,372		165,670,327		145,451,895		138,640,105
Available for sale	See Previous Table		517,155,598		517,155,598		551,758,458		551,758,458
Loans/leases receivable, net	Level 3		7,668,264		8,281,725		8,342,182		9,009,557
Loans/leases receivable, net	Level 2		1,518,632,461		1,521,236,736		1,430,489,328		1,441,952,443
Derivative Instruments	Level 2		1,820,501		1,820,501		-		-
Deposits:
Nonmaturity deposits	Level 2		1,291,304,395		1,291,304,395		1,256,209,352		1,256,209,352
Time deposits	Level 2		386,063,880		387,275,000		390,781,891		391,923,000
Short-term borrowings	Level 2		204,321,854		204,321,854		149,292,967		149,292,967
Federal Home Loan Bank advances	Level 2		222,900,000		235,770,000		231,350,000		241,623,000
Other borrowings	Level 2		151,452,927		162,038,000		142,448,362		152,761,000
Junior subordinated debentures	Level 2		40,356,154		28,332,467		40,289,830		28,094,228

The methodologies for estimating the fair value of financial assets and liabilities that are measured at fair value on a recurring or non-recurring basis are discussed above. For certain financial assets and liabilities, carrying value approximates fair value due to the nature of the financial instrument. These instruments include: cash and due from banks, federal funds sold, interest-bearing deposits at financial institutions, non-maturity deposits, and short-term borrowings. The Company used the following methods and assumptions in estimating the fair value of the following instruments:

Securities held to maturity: The fair values are estimated using pricing models that consider certain observable market data, however, as most of the securities have limited or no trading activity and are not rated, the fair value is partially dependent upon unobservable inputs.

Loans/leases receivable: The fair values for all types of loans/leases are estimated using discounted cash flow analyses, using interest rates currently being offered for loans/leases with similar terms to borrowers with similar credit quality. The fair value of loans held for sale is based on quoted market prices of similar loans sold in the secondary market.

Deposits: The fair values disclosed for demand deposits equal their carrying amounts, which represent the amount payable on demand. Fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on time deposits to a schedule of aggregate expected monthly maturities on time deposits.

FHLB advances and junior subordinated debentures: The fair value of these instruments is estimated using discounted cash flow analyses, based on the Company's current incremental borrowing rates for similar types of borrowing arrangements. 

Other borrowings: The fair value for the wholesale repurchase agreements and fixed rate other borrowings is estimated using rates currently available for debt with similar terms and remaining maturities. The fair value for variable rate other borrowings is equal to its carrying value.

Commitments to extend credit: The fair value of these commitments is not material.

XML

Note 4 - Earnings Per Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 4 - EARNINGS PER SHARE

The following information was used in the computation of earnings per share on a basic and diluted basis:

	Three months ended				Six months ended
	June 30,				June 30,
	2014		2013		2014		2013
Net income	$	4,007,836	$	4,045,231	$	7,897,051	$	7,310,375
Less: Preferred stock dividends		373,869		810,838		1,081,877		1,621,675
Net income attributable to QCR Holdings, Inc. common stockholders	$	3,633,967	$	3,234,393	$	6,815,174	$	5,688,700
Earnings per common share attributable to QCR Holdings, Inc. common stockholders
Basic	$	0.46	$	0.60	$	0.86	$	1.10
Diluted	$	0.45	$	0.59	$	0.85	$	1.08
Weighted average common shares outstanding		7,924,624		5,393,062		7,912,830		5,160,327
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan		125,890		104,213		127,449		105,482
Weighted average common and common equivalent shares outstanding		8,050,514		5,497,275		8,040,279		5,265,809

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Note 5 - Business Segment Information

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 5 – BUSINESS SEGMENT INFORMATION

Selected financial and descriptive information is required to be disclosed for reportable operating segments, applying a “management perspective” as the basis for identifying reportable segments. The management perspective is determined by the view that management takes of the segments within the Company when making operating decisions, allocating resources, and measuring performance. The segments of the Company have been defined by the structure of the Company’s internal organization, focusing on the financial information that the Company’s operating decision-makers routinely use to make decisions about operating matters.

The Company’s primary segment, Commercial Banking, is geographically divided by markets into the secondary segments which are the three subsidiary banks wholly-owned by the Company: QCBT, CRBT, and RB&T. CRBT includes CNB’s operations from the date of its acquisition on May 13, 2013. Each of these secondary segments offers similar products and services, but is managed separately due to different pricing, product demand, and consumer markets. Each offers commercial, consumer, and mortgage loans and deposit services.

The Company’s Wealth Management segment represents the trust and asset management and investment management and advisory services offered at the Company’s three subsidiary banks in aggregate. This segment generates income primarily from fees charged based on assets under administration for corporate and personal trusts, custodial services, and investments managed. No assets of the subsidiary banks have been allocated to the Wealth Management segment.

The Company’s All Other segment includes the operations of all other consolidated subsidiaries and/or defined operating segments that fall below the segment reporting thresholds. This segment includes the corporate operations of the parent company.

Selected financial information on the Company’s business segments is presented as follows for the three and six months ended June 30, 2014 and 2013.

	Commercial Banking
	Quad City		Cedar Rapids		Rockford		Wealth					Intercompany			Consolidated
	Bank & Trust		Bank & Trust		Bank & Trust		Management		All Other			Eliminations			Total
Three Months Ended June 30, 2014
Total revenue	$	11,962,820	$	8,710,753	$	3,701,841	$	2,155,272	$	5,266,342		$	(5,347,439	)	$	26,449,589
Net interest income	$	9,080,775	$	5,739,056	$	2,576,734	$	-	$	(431,222	)	$	-		$	16,965,343
Net income	$	2,454,422	$	1,781,987	$	614,264	$	386,913	$	4,007,836		$	(5,237,586	)	$	4,007,836
Total assets	$	1,278,200,724	$	826,278,230	$	351,309,896	$	-	$	208,242,778		$	(199,192,145	)	$	2,464,839,483
Provision for loan/lease losses	$	560,879	$	250,000	$	191,000	$	-	$	-		$	-		$	1,001,879
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,770,677	$	-	$	-	$	-		$	-		$	1,770,677
Three Months Ended June 30, 2013
Total revenue	$	11,810,586	$	8,140,723	$	3,649,811	$	1,728,074	$	6,439,309		$	(4,680,346	)	$	27,088,157
Net interest income	$	8,485,092	$	5,177,399	$	2,434,391	$	-	$	(388,830	)	$	-		$	15,708,052
Net income	$	1,951,271	$	1,864,374	$	719,480	$	232,035	$	4,045,231		$	(4,767,160	)	$	4,045,231
Total assets	$	1,226,928,751	$	896,869,042	$	333,996,843	$	-	$	211,484,709		$	(222,507,868	)	$	2,446,771,477
Provision for loan/lease losses	$	1,020,123	$	100,014	$	400,000	$	-	$	-		$	-		$	1,520,137
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	3,440,076	$	-	$	-	$	-		$	-		$	3,440,076
Six Months Ended June 30, 2014
Total revenue	$	23,900,953	$	17,014,378	$	7,184,717	$	4,304,606	$	10,490,207		$	(10,663,220	)	$	52,231,641
Net interest income	$	18,001,813	$	11,641,115	$	5,052,416	$	-	$	(880,760	)	$	-		$	33,814,584
Net income	$	4,795,705	$	3,716,757	$	1,085,303	$	846,207	$	7,897,051		$	(10,443,972	)	$	7,897,051
Total assets	$	1,278,200,724	$	826,278,230	$	351,309,896	$	-	$	208,242,778		$	(199,192,145	)	$	2,464,839,483
Provision for loan/lease losses	$	1,170,041	$	550,000	$	376,000	$	-	$	-		$	-		$	2,096,041
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,770,677	$	-	$	-	$	-		$	-		$	1,770,677
Six Months Ended June 30, 2013
Total revenue	$	23,866,247	$	15,069,074	$	6,833,870	$	3,377,085	$	11,171,879		$	(9,488,487	)	$	50,829,668
Net interest income	$	16,876,630	$	9,022,281	$	4,739,468	$	-	$	(739,010	)	$	-		$	29,899,369
Net income	$	4,448,296	$	3,585,185	$	815,722	$	445,042	$	7,310,375		$	(9,294,245	)	$	7,310,375
Total assets	$	1,226,928,751	$	896,869,042	$	333,996,843	$	-	$	211,484,709		$	(222,507,868	)	$	2,446,771,477
Provision for loan/lease losses	$	1,377,905	$	400,014	$	800,000	$	-	$	-		$	-		$	2,577,919
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	3,440,076	$	-	$	-	$	-		$	-		$	3,440,076

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Note 7 - Full Redemption of Series F Preferred STock

6 Months Ended

Jun. 30, 2014

Disclosure Text Block Supplement [Abstract]

Preferred Stock [Text Block]

NOTE 7 – FULL REDEMPTION OF SERIES F PREFERRED STOCK

On June 30, 2014, the Company redeemed the remaining 14,867 shares of its Series F Non-Cumulative Perpetual Preferred Stock (the “Series F Preferred Stock”) from the United States Department of the Treasury (“Treasury”) for an aggregate redemption amount of $14,823,922, plus unpaid dividends to the date of redemption of $373,869.

Previously, on September 15, 2011, the Company issued 40,090 shares of Series F Preferred Stock to the Treasury for an aggregate purchase price of $40,090,000. The sale of Series F Preferred Stock was the result of an investment by Treasury under the Small Business Lending Fund. On June 29, 2012, the Company redeemed 10,223 shares of Series F Preferred Stock and on March 31, 2014, the Company redeemed an additional 15,000 shares.

With the final redemption on June 30, 2014, the Company no longer has any outstanding preferred stock and all preferred stock dividend payment commitments have been eliminated.

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Note 3 - Loans/Leases Receivable (Details) - Allowance for Estimated Losses on Loans/Leases (USD $)	3 Months Ended			6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013	Jun. 30, 2014		Jun. 30, 2013	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	$ 22,653,270		$ 20,769,462	$ 21,448,048		$ 19,925,204
Provisions charged to expense	1,001,879		1,520,137	2,096,041		2,577,919
Loans/leases charged off	(675,977)		(1,332,907)	(755,298)		(1,635,674)
Recoveries on loans/leases previously charged off	87,852		199,687	278,233		288,930
Balance, ending	23,067,024		21,156,379	23,067,024		21,156,379
Allowance for loans/leases individually evaluated for impairment	4,658,545			4,658,545			5,008,822
Allowance for loans/leases collectively evaluated for impairment	18,408,479			18,408,479			16,439,226
Allowance for loans/leases collectively and individually evaluated for impairment	23,067,024		21,156,379	23,067,024		21,156,379
Loans/leases individually evaluated for impairment	18,250,952			18,250,952			19,080,420
Loans/leases collectively evaluated for impairment	1,525,266,246			1,525,266,246			1,436,652,213
Loans/Leases individually and collectively evaluated for impairment	1,543,517,198			1,543,517,198			1,455,732,633
Allowance as a percentage of loans/leases individually evaluated for impairment	25.52%			25.52%			26.25%
Allowance as a percentage of loans/leases collectively evaluated for impairment	1.21%			1.21%			1.14%
Total allowancе as a pеrcеntagе of total loans/lеaеss	1.49%			1.49%			1.47%
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	6,647,658		4,466,264	5,648,774		4,531,545
Provisions charged to expense	101,718		348,298	1,078,508		260,491
Loans/leases charged off	(222,057)		(38,685)	(226,080)		(38,900)
Recoveries on loans/leases previously charged off	22,059		14,951	48,176		37,692
Balance, ending	6,549,378		4,790,828	6,549,378		4,790,828
Allowance for loans/leases individually evaluated for impairment	848,593			848,593			927,453
Allowance for loans/leases collectively evaluated for impairment	5,700,785			5,700,785			4,721,321
Allowance for loans/leases collectively and individually evaluated for impairment	6,549,378		4,790,828	6,549,378		4,790,828
Loans/leases individually evaluated for impairment	2,104,768			2,104,768			1,761,850
Loans/leases collectively evaluated for impairment	478,389,553			478,389,553			429,926,279
Loans/Leases individually and collectively evaluated for impairment	480,494,321			480,494,321			431,688,129
Allowance as a percentage of loans/leases individually evaluated for impairment	40.32%			40.32%			52.64%
Allowance as a percentage of loans/leases collectively evaluated for impairment	1.19%			1.19%			1.10%
Total allowancе as a pеrcеntagе of total loans/lеaеss	1.36%			1.36%			1.31%
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	10,587,657		12,188,953	10,705,434		11,069,502
Provisions charged to expense	(33,506)		672,077	(263,491)		1,786,371
Loans/leases charged off	(311,453)		(820,725)	(315,551)		(820,725)
Recoveries on loans/leases previously charged off	34,994		150,192	151,300		155,349
Balance, ending	10,277,692		12,190,497	10,277,692		12,190,497
Allowance for loans/leases individually evaluated for impairment	2,567,526			2,567,526			3,174,704
Allowance for loans/leases collectively evaluated for impairment	7,710,166			7,710,166			7,530,730
Allowance for loans/leases collectively and individually evaluated for impairment	10,277,692		12,190,497	10,277,692		12,190,497
Loans/leases individually evaluated for impairment	11,264,502			11,264,502			12,956,915
Loans/leases collectively evaluated for impairment	672,111,239			672,111,239			658,796,014
Loans/Leases individually and collectively evaluated for impairment	683,375,741			683,375,741			671,752,929
Allowance as a percentage of loans/leases individually evaluated for impairment	22.79%			22.79%			24.50%
Allowance as a percentage of loans/leases collectively evaluated for impairment	1.15%			1.15%			1.14%
Total allowancе as a pеrcеntagе of total loans/lеaеss	1.50%			1.50%			1.59%
Finance Leases Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	2,820,239		2,296,523	2,517,217		1,990,395
Provisions charged to expense	566,374		340,137	919,021		718,760
Loans/leases charged off	(78,755)		(449,622)	(144,488)		(522,671)
Recoveries on loans/leases previously charged off	11,273		567	27,381		1,121
Balance, ending	3,319,131		2,187,605	3,319,131		2,187,605
Allowance for loans/leases individually evaluated for impairment	534,043			534,043			192,847
Allowance for loans/leases collectively evaluated for impairment	2,785,088			2,785,088			2,324,370
Allowance for loans/leases collectively and individually evaluated for impairment	3,319,131		2,187,605	3,319,131		2,187,605
Loans/leases individually evaluated for impairment	1,791,828			1,791,828			894,458
Loans/leases collectively evaluated for impairment	153,212,190			153,212,190			128,006,984
Loans/Leases individually and collectively evaluated for impairment	155,004,018			155,004,018			128,901,442
Allowance as a percentage of loans/leases individually evaluated for impairment	29.80%			29.80%			21.56%
Allowance as a percentage of loans/leases collectively evaluated for impairment	1.82%			1.82%			1.82%
Total allowancе as a pеrcеntagе of total loans/lеaеss	2.14%			2.14%			1.95%
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	1,388,885		966,336	1,395,849		1,070,328
Provisions charged to expense	101,030		195,774	96,675		204,673
Loans/leases charged off	(50,730)			(53,442)		(112,891)
Recoveries on loans/leases previously charged off			3,231	103		3,231
Balance, ending	1,439,185		1,165,341	1,439,185		1,165,341
Allowance for loans/leases individually evaluated for impairment	237,358			237,358			246,266
Allowance for loans/leases collectively evaluated for impairment	1,201,827			1,201,827			1,149,583
Allowance for loans/leases collectively and individually evaluated for impairment	1,439,185		1,165,341	1,439,185		1,165,341
Loans/leases individually evaluated for impairment	1,795,128			1,795,128			2,116,747
Loans/leases collectively evaluated for impairment	151,404,591			151,404,591			145,239,576
Loans/Leases individually and collectively evaluated for impairment	153,199,719	[1]		153,199,719	[1]		147,356,323	[1]
Allowance as a percentage of loans/leases individually evaluated for impairment	13.22%			13.22%			11.63%
Allowance as a percentage of loans/leases collectively evaluated for impairment	0.79%			0.79%			0.79%
Total allowancе as a pеrcеntagе of total loans/lеaеss	0.94%			0.94%			0.95%
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	1,208,831		851,386	1,180,774		1,263,434
Provisions charged to expense	266,263		(36,149)	265,328		(392,376)
Loans/leases charged off	(12,982)		(23,875)	(15,737)		(140,487)
Recoveries on loans/leases previously charged off	19,526		30,746	51,273		91,537
Balance, ending	1,481,638		822,108	1,481,638		822,108
Allowance for loans/leases individually evaluated for impairment	471,025			471,025			467,552
Allowance for loans/leases collectively evaluated for impairment	1,010,613			1,010,613			713,222
Allowance for loans/leases collectively and individually evaluated for impairment	1,481,638		822,108	1,481,638		822,108
Loans/leases individually evaluated for impairment	1,294,726			1,294,726			1,350,450
Loans/leases collectively evaluated for impairment	70,148,673			70,148,673			74,683,360
Loans/Leases individually and collectively evaluated for impairment	$ 71,443,399			$ 71,443,399			$ 76,033,810
Allowance as a percentage of loans/leases individually evaluated for impairment	36.38%			36.38%			34.62%
Allowance as a percentage of loans/leases collectively evaluated for impairment	1.44%			1.44%			0.95%
Total allowancе as a pеrcеntagе of total loans/lеaеss	2.07%			2.07%			1.55%

[1] Includes residential real estate loans held for sale totaling $1,302,175 and $1,358,290 as of June 30, 2014, and December 31, 2013, respectively.

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Note 4 - Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three months ended				Six months ended
	June 30,				June 30,
	2014		2013		2014		2013
Net income	$	4,007,836	$	4,045,231	$	7,897,051	$	7,310,375
Less: Preferred stock dividends		373,869		810,838		1,081,877		1,621,675
Net income attributable to QCR Holdings, Inc. common stockholders	$	3,633,967	$	3,234,393	$	6,815,174	$	5,688,700
Earnings per common share attributable to QCR Holdings, Inc. common stockholders
Basic	$	0.46	$	0.60	$	0.86	$	1.10
Diluted	$	0.45	$	0.59	$	0.85	$	1.08
Weighted average common shares outstanding		7,924,624		5,393,062		7,912,830		5,160,327
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan		125,890		104,213		127,449		105,482
Weighted average common and common equivalent shares outstanding		8,050,514		5,497,275		8,040,279		5,265,809

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Note 2 - Investment Securities (Details) - Amortized Cost and Fair Value of Investment Securities (USD $)	Jun. 30, 2014	Dec. 31, 2013
Securities held to maturity:
Securities held to maturity, amortized cost	$ 166,787,372	$ 145,451,895
Securities held to maturity, gross unrealized gains	1,492,583	299,789
Securities held to maturity, gross unrealized losses	(2,609,628)	(7,111,579)
Securities held to maturity, fair value	165,670,327	138,640,105
Securities available for sale:
Available for Sale Securities, amortized cost	521,322,159	573,870,562
Available for Sale Securities, gross unrealized gains	4,026,041	2,643,218
Available for Sale Securities, gross unrealized losses	(10,013,103)	(24,755,322)
Available for Sale Securities, fair value	515,335,097	551,758,458
US States and Political Subdivisions Debt Securities [Member]
Securities held to maturity:
Securities held to maturity, amortized cost	165,737,372	144,401,895
Securities held to maturity, gross unrealized gains	1,492,583	299,789
Securities held to maturity, gross unrealized losses	(2,609,628)	(7,111,579)
Securities held to maturity, fair value	164,620,327	137,590,105
Securities available for sale:
Available for Sale Securities, amortized cost	32,871,334	35,813,866
Available for Sale Securities, gross unrealized gains	1,156,141	923,315
Available for Sale Securities, gross unrealized losses	(170,004)	(778,324)
Available for Sale Securities, fair value	33,857,471	35,958,857
Other Securities [Member]
Securities held to maturity:
Securities held to maturity, amortized cost	1,050,000	1,050,000
Securities held to maturity, gross unrealized gains	0	0
Securities held to maturity, gross unrealized losses	0	0
Securities held to maturity, fair value	1,050,000	1,050,000
Securities available for sale:
Available for Sale Securities, amortized cost	1,401,827	1,372,365
Available for Sale Securities, gross unrealized gains	560,129	524,798
Available for Sale Securities, gross unrealized losses	0	0
Available for Sale Securities, fair value	1,961,956	1,897,163
US Government Agencies Debt Securities [Member]
Securities available for sale:
Available for Sale Securities, amortized cost	334,083,927	376,574,132
Available for Sale Securities, gross unrealized gains	109,470	41,696
Available for Sale Securities, gross unrealized losses	(8,572,941)	(20,142,841)
Available for Sale Securities, fair value	325,620,456	356,472,987
Residential Mortgage Backed Securities [Member]
Securities available for sale:
Available for Sale Securities, amortized cost	152,965,071	160,110,199
Available for Sale Securities, gross unrealized gains	2,200,301	1,153,409
Available for Sale Securities, gross unrealized losses	(1,270,158)	(3,834,157)
Available for Sale Securities, fair value	$ 153,895,214	$ 157,429,451

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Note 8 - Derivatives and Hedging Activities (Details) - Summary of Interest Rate Cap Derivatives (USD $)	Jun. 30, 2014
Derivatives, Fair Value [Line Items]
Notional Amount	$ 30,000,000
Fair Value of Cap Asset	1,820,501
Cash Flow Hedging [Member] | Interest Rate Cap 1 [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	15,000,000
Fair Value of Cap Asset	707,710
Cash Flow Hedging [Member] | Interest Rate Cap 2 [Member] | Other Assets [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	15,000,000
Fair Value of Cap Asset	$ 1,112,791

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Note 3 - Loans/Leases Receivable (Details) - Troubled Debt Restructurings - Six Months Ending (USD $)			3 Months Ended	6 Months Ended			3 Months Ended	6 Months Ended		3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended					3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014 Significant Payment Delay [Member] Commercial and Industrial [Member]	Jun. 30, 2014 Significant Payment Delay [Member] Commercial and Industrial [Member]	Jun. 30, 2013 Significant Payment Delay [Member] Owner-Occupied Commercial Real Estate [Member]	Jun. 30, 2014 Significant Payment Delay [Member] Finance Leases Portfolio Segment [Member]	Jun. 30, 2013 Significant Payment Delay [Member] Residential Portfolio Segment [Member]	Jun. 30, 2013 Significant Payment Delay [Member] Residential Portfolio Segment [Member]	Jun. 30, 2013 Significant Payment Delay [Member] Installment and Other Consumer [Member]	Jun. 30, 2014 Significant Payment Delay [Member]	Jun. 30, 2013 Significant Payment Delay [Member]	Jun. 30, 2014 Significant Payment Delay [Member]	Jun. 30, 2013 Significant Payment Delay [Member]	Jun. 30, 2013 Interest Rate Adjusted Below Market [Member] Residential Portfolio Segment [Member]	Jun. 30, 2013 Interest Rate Adjusted Below Market [Member] Residential Portfolio Segment [Member]	Jun. 30, 2013 Interest Rate Adjusted Below Market [Member] Commercial Construction, Land Development, and Other Land [Member]	Jun. 30, 2013 Interest Rate Adjusted Below Market [Member] Commercial Construction, Land Development, and Other Land [Member]	Jun. 30, 2013 Interest Rate Adjusted Below Market [Member]	Jun. 30, 2013 Interest Rate Adjusted Below Market [Member]	Jun. 30, 2013 Extension of Maturity [Member] Commercial and Industrial [Member]	Jun. 30, 2014 Extension of Maturity [Member] Finance Leases Portfolio Segment [Member]	Jun. 30, 2014 Extension of Maturity [Member]	Jun. 30, 2013 Extension of Maturity [Member]	Jun. 30, 2014 All Other [Member] Commercial and Industrial [Member]	Jun. 30, 2014 All Other [Member] Commercial and Industrial [Member]	Jun. 30, 2014 All Other [Member]	Jun. 30, 2014 All Other [Member]	Jun. 30, 2014 Troubled Debt Restructurings [Member]	Jun. 30, 2013 Troubled Debt Restructurings [Member]	Jun. 30, 2014 Troubled Debt Restructurings [Member]	Jun. 30, 2013 Troubled Debt Restructurings [Member]	Jun. 30, 2014 Commercial and Industrial [Member]	Dec. 31, 2013 Commercial and Industrial [Member]	Jun. 30, 2014 Owner-Occupied Commercial Real Estate [Member]	Dec. 31, 2013 Owner-Occupied Commercial Real Estate [Member]	Jun. 30, 2014 Finance Leases Portfolio Segment [Member]	Dec. 31, 2013 Finance Leases Portfolio Segment [Member]	Jun. 30, 2014 Residential Portfolio Segment [Member]	Dec. 31, 2013 Residential Portfolio Segment [Member]	Jun. 30, 2014 Commercial Construction, Land Development, and Other Land [Member]	Dec. 31, 2013 Commercial Construction, Land Development, and Other Land [Member]
CONCESSION - Significant payment delay
Number of loans/leases			3	3	1	1	1	1	1	3	2	4	3	1	1	1	1	2	2	3	1	1	3	1	1	1	1	4	4	6	8
Pre-modification recorded investment			$ 889,154	$ 889,154	$ 47,958	$ 89,443	$ 91,581	$ 91,581	$ 370,000	$ 889,154	$ 461,581	$ 978,597	$ 509,539	$ 160,627	$ 160,627	$ 337,500	$ 337,500	$ 498,127	$ 498,127	$ 809,494	$ 70,144	$ 70,144	$ 809,494	$ 427,849	$ 427,849	$ 427,849	$ 427,849	$ 1,317,003	$ 959,708	$ 1,476,590	$ 1,817,160
Post-modification recorded investment			889,154	889,154	47,958	89,443	91,581	91,581	370,000	889,154	461,581	978,597	509,539	160,627	160,627	337,500	337,500	498,127	498,127	809,494	70,144	70,144	809,494	427,849	427,849	427,849	427,849	1,317,003	959,708	1,476,590	1,817,160
Specific allowance	$ 4,658,545	$ 5,008,822	$ 239,783	$ 239,783						$ 239,783		$ 239,783								$ 188,700	$ 24,246	$ 24,246	$ 188,700	$ 113,449	$ 113,449	$ 113,449	$ 113,449	$ 353,232	$ 188,700	$ 353,232	$ 188,700	$ 848,593	$ 927,453	$ 176,287	$ 67,498	$ 534,043	$ 192,847	$ 237,358	$ 246,266	$ 461,671	$ 503,825

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Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Net income	$ 4,007,836	$ 4,045,231	$ 7,897,051	$ 7,310,375
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period before tax	7,656,064	(21,238,019)	16,146,238	(22,594,571)
Less reclassification adjustment for gains included in net income before tax	571	16,460	21,196	16,460
	7,655,493	(21,254,479)	16,125,042	(22,611,031)
Unrealized losses on derivative instruments	(251,149)		(251,149)
Other comprehensive income (loss), before tax	7,404,344	(21,254,479)	15,873,893	(22,611,031)
Tax expense (benefit)	2,928,330	(8,162,990)	6,167,095	(8,683,184)
Other comprehensive income (loss), net of tax	4,476,014	(13,091,489)	9,706,798	(13,927,847)
Comprehensive income (loss) attributable to QCR Holdings, Inc.	$ 8,483,850	$ (9,046,258)	$ 17,603,849	$ (6,617,472)

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Note 1 - Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

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, 2013, included in QCR Holdings, Inc.’s (the “Company”) Form 10-K filed with the Securities and Exchange Commission on March 10, 2014. 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 U.S. generally accepted accounting principles 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 June 30, 2014, are not necessarily indicative of the results expected for the year ending December 31, 2014.

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries which include three commercial banks: Quad City Bank & Trust Company (“QCBT”), Cedar Rapids Bank & Trust Company (“CRBT”), and Rockford Bank & Trust Company (“RB&T”). On May 13, 2013, the Company acquired Community National Bancorporation (“Community National”) and its banking subsidiary Community National Bank (“CNB”). The Company operated CNB as a separate banking charter from the acquisition date until October 26, 2013, when CNB’s charter was merged with and into CRBT. CNB’s merged branch offices operate as a division of CRBT under the name of “Community Bank & Trust”. QCBT, CRBT, and RB&T are all state-chartered commercial banks. The Company also engages in direct financing lease contracts through m2 Lease Funds, LLC (“m2 Lease Funds”), a wholly-owned subsidiary of QCBT. All material intercompany transactions and balances have been eliminated in consolidation.

Recent accounting developments: In January 2014, FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The objective of ASU 2014-04 is to reduce diversity by clarifying when an in substance repossession or foreclosure occurs, that is, when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. ASU 2014-04 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Management is in the process of evaluating the impact of ASU 2014-04 on the Company’s consolidated financial statements.

In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers. ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 is effective on January 1, 2017 and is not expected to have a significant impact on the Company’s financial statements.

In June 2014, FASB issued ASU 2014-11, Transfers and Servicing. ASU 2014-11 requires that repurchase-to-maturity transactions be accounted for as secured borrowings, consistent with the accounting for other repurchase agreements. In addition, ASU 2014-11 requires separate accounting for repurchase financings, which entail the transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty. The standard requires entities to disclose certain information about transfers accounted for as sales in transactions that are economically similar to repurchase agreements. In addition, ASU 2014-11 requires disclosures related to collateral and remaining tenor and of the potential risks associated with repurchase agreements, securities lending transactions and repurchase-to-maturity transactions. ASU 2014-11 is effective on January 1, 2015 and is not expected to have a significant impact on the Company’s consolidated financial statements.

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

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Note 2 - Investment Securities (Details) - Gross Unrealized Losses and Fair Value of Securities in a Continuous Unrealized Loss Position (USD $)	Jun. 30, 2014	Dec. 31, 2013
Securities available for sale:
Available for Sale Securities less than 12 months fair value	$ 301,061,298	$ 441,808,604
Available for Sale Securities less than 12 months gross unrealized losses	(8,728,921)	(22,813,786)
Available for Sale Securities 12 months or more fair value	71,709,707	26,081,796
Available for Sale Securities 12 months or more gross unrealized losses	(1,284,182)	(1,941,536)
Available for Sale Securities fair value	372,771,005	467,890,400
Available for Sale Securities gross unrealized losses	(10,013,103)	(24,755,322)
US States and Political Subdivisions Debt Securities [Member]
Securities held to maturity:
Held to Maturity Securities less than 12 months fair value	37,351,435	101,983,602
Held to Maturity Securities less than 12 months gross unrealized losses	(982,726)	(6,711,240)
Held to Maturity Securities 12 months or more fair value	47,726,709	2,697,375
Held to Maturity Securities 12 months or more gross unrealized losses	(1,626,902)	(400,339)
Held to Maturity Securities fair value	85,078,144	104,680,977
Held to Maturity Securities gross unrealized losses	(2,609,628)	(7,111,579)
Securities available for sale:
Available for Sale Securities less than 12 months fair value	8,765,260	13,890,692
Available for Sale Securities less than 12 months gross unrealized losses	(131,548)	(724,939)
Available for Sale Securities 12 months or more fair value	2,184,122	985,687
Available for Sale Securities 12 months or more gross unrealized losses	(38,456)	(53,385)
Available for Sale Securities fair value	10,949,382	14,876,379
Available for Sale Securities gross unrealized losses	(170,004)	(778,324)
US Government Agencies Debt Securities [Member]
Securities available for sale:
Available for Sale Securities less than 12 months fair value	284,171,721	333,194,820
Available for Sale Securities less than 12 months gross unrealized losses	(8,502,103)	(19,141,077)
Available for Sale Securities 12 months or more fair value	13,725,024	10,978,390
Available for Sale Securities 12 months or more gross unrealized losses	(70,838)	(1,001,764)
Available for Sale Securities fair value	297,896,745	344,173,210
Available for Sale Securities gross unrealized losses	(8,572,941)	(20,142,841)
Residential Mortgage Backed Securities [Member]
Securities available for sale:
Available for Sale Securities less than 12 months fair value	8,124,317	94,723,092
Available for Sale Securities less than 12 months gross unrealized losses	(95,270)	(2,947,770)
Available for Sale Securities 12 months or more fair value	55,800,561	14,117,719
Available for Sale Securities 12 months or more gross unrealized losses	(1,174,888)	(886,387)
Available for Sale Securities fair value	63,924,878	108,840,811
Available for Sale Securities gross unrealized losses	$ (1,270,158)	$ (3,834,157)

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Note 3 - Loans/Leases Receivable (Details) - Loans By Credit Quality Indicators (USD $)	Jun. 30, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	$ 1,163,870,062	$ 1,103,441,058
Commercial and Industrial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	444,280,023	407,294,743
Commercial and Industrial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	22,616,136	11,355,713
Commercial and Industrial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	13,598,162	13,037,673
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	480,494,321	431,688,129
Owner-Occupied Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	228,602,988	250,028,731
Owner-Occupied Commercial Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	10,214,621	8,318,232
Owner-Occupied Commercial Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	8,778,542	2,868,949
Owner-Occupied Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	247,596,151	261,215,912
Commercial Construction, Land Development, and Other Land [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	54,249,436	51,868,919
Commercial Construction, Land Development, and Other Land [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating		1,588,086
Commercial Construction, Land Development, and Other Land [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	3,792,653	4,387,897
Commercial Construction, Land Development, and Other Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	58,042,089	57,844,902
Non-Owner Occupied Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	349,022,456	326,168,882
Non-Owner Occupied Commercial Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	1,475,286	3,310,017
Non-Owner Occupied Commercial Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	27,239,759	23,213,216
Non-Owner Occupied Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	377,737,501	352,692,115
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	1,076,154,903	1,035,361,275
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	34,306,043	24,572,048
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	$ 53,409,116	$ 43,507,735

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Note 3 - Loans/Leases Receivable (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2014

Jun. 30, 2014

Receivables [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	As of June 30,			As of December 31,
	2014			2013
Commercial and industrial loans	$	480,494,321		$	431,688,129
Commercial real estate loans
Owner-occupied commercial real estate		247,596,151			261,215,912
Commercial construction, land development, and other land		58,042,089			57,844,902
Other non owner-occupied commercial real estate		377,737,501			352,692,115
		683,375,741			671,752,929
Direct financing leases *		155,004,018			128,901,442
Residential real estate loans **		153,199,719			147,356,323
Installment and other consumer loans		71,443,399			76,033,810
		1,543,517,198			1,455,732,633
Plus deferred loan/lease origination costs, net of fees		5,850,551			4,546,925
		1,549,367,749			1,460,279,558
Less allowance for estimated losses on loans/leases		(23,067,024	)		(21,448,048	)
	$	1,526,300,725		$	1,438,831,510
* Direct financing leases:
Net minimum lease payments to be received	$	175,772,051		$	145,662,254
Estimated unguaranteed residual values of leased assets		1,642,309			1,694,499
Unearned lease/residual income		(22,410,342	)		(18,455,311	)
		155,004,018			128,901,442
Plus deferred lease origination costs, net of fees		5,935,700			4,814,183
		160,939,718			133,715,625
Less allowance for estimated losses on leases		(3,319,131	)		(2,517,217	)
	$	157,620,587		$	131,198,408

Past Due Financing Receivables [Table Text Block]

	As of June 30, 2014
Classes of Loans/Leases	Current			30-59 Days Past Due			60-89 Days Past Due			Accruing Past Due 90 Days or More			Nonaccrual Loans/Leases			Total
Commercial and Industrial	$	478,425,272		$	162,344		$	110,714		$	41,950		$	1,754,041		$	480,494,321
Commercial Real Estate
Owner-Occupied Commercial Real Estate		244,861,764			81,356			1,380,715			39,852			1,232,464			247,596,151
Commercial Construction, Land Development, and Other Land		56,324,561			1,086,827			-			-			630,701			58,042,089
Other Non Owner-Occupied Commercial Real Estate		366,941,393			924,340			18,800			-			9,852,968			377,737,501
Direct Financing Leases		151,796,790			599,582			802,650			13,167			1,791,829			155,004,018
Residential Real Estate		151,334,965			65,549			347,400			-			1,451,805			153,199,719
Installment and Other Consumer		70,353,793			94,038			49,196			8,646			937,726			71,443,399
	$	1,520,038,538		$	3,014,036		$	2,709,475		$	103,615		$	17,651,534		$	1,543,517,198
As a percentage of total loan/lease portfolio		98.48	%		0.20	%		0.18	%		0.01	%		1.14	%		100.00	%

	As of December 31, 2013
Classes of Loans/Leases	Current			30-59 Days Past Due			60-89 Days Past Due			Accruing Past Due 90 Days or More			Nonaccrual Loans/Leases			Total
Commercial and Industrial	$	429,557,699		$	199,949		$	185,500		$	-		$	1,744,981		$	431,688,129
Commercial Real Estate
Owner-Occupied Commercial Real Estate		258,557,660			465,418			993,163			60,286			1,139,385			261,215,912
Commercial Construction, Land Development, and Other Land		56,301,186			358,626			-			-			1,185,090			57,844,902
Other Non Owner-Occupied Commercial Real Estate		341,743,730			476,877			151,017			-			10,320,491			352,692,115
Direct Financing Leases		126,878,515			714,464			414,005			-			894,458			128,901,442
Residential Real Estate		142,353,936			3,088,516			275,262			20,126			1,618,483			147,356,323
Installment and Other Consumer		74,811,489			127,082			116,468			3,762			975,009			76,033,810
	$	1,430,204,215		$	5,430,932		$	2,135,415		$	84,174		$	17,877,897		$	1,455,732,633
As a percentage of total loan/lease portfolio		98.25	%		0.37	%		0.15	%		0.01	%		1.23	%		100.00	%

Schedule of Nonperforming Loans Leases [Table Text Block]

	As of June 30, 2014
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases *		Troubled Debt Restructurings - Accruing		Total Nonperforming Loans/Leases		Percentage of Total Nonperforming Loans/Leases
Commercial and Industrial	$	41,950	$	1,754,041	$	1,483,846	$	3,279,837		16.45	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		39,852		1,232,464		-		1,272,316		6.38	%
Commercial Construction, Land Development, and Other Land		-		630,701		-		630,701		3.16	%
Other Non Owner-Occupied Commercial Real Estate		-		9,852,968		-		9,852,968		49.41	%
Direct Financing Leases		13,167		1,791,829		-		1,804,996		9.05	%
Residential Real Estate		-		1,451,805		343,322		1,795,127		9.00	%
Installment and Other Consumer		8,646		937,726		357,000		1,303,372		6.54	%
	$	103,615	$	17,651,534	$	2,184,168	$	19,939,317		100.00	%

	As of December 31, 2013
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases **		Troubled Debt Restructurings - Accruing		Total Nonperforming Loans/Leases		Percentage of Total Nonperforming Loans/Leases
Commercial and Industrial	$	-	$	1,744,981	$	878,381	$	2,623,362		12.81	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		60,286		1,139,385		-		1,199,671		5.86	%
Commercial Construction, Land Development, and Other Land		-		1,185,090		-		1,185,090		5.79	%
Other Non Owner-Occupied Commercial Real Estate		-		10,320,491		905,205		11,225,696		54.80	%
Direct Financing Leases		-		894,458		-		894,458		4.37	%
Residential Real Estate		20,126		1,618,483		371,995		2,010,604		9.82	%
Installment and Other Consumer		3,762		975,009		367,000		1,345,771		6.57	%
	$	84,174	$	17,877,897	$	2,522,581	$	20,484,652		100.00	%

Allowance for Credit Losses on Financing Receivables [Table Text Block]

	Three Months Ended June 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	6,647,658		$	10,587,657		$	2,820,239		$	1,388,885		$	1,208,831		$	22,653,270
Provisions (credits) charged to expense		101,718			(33,506	)		566,374			101,030			266,263			1,001,879
Loans/leases charged off		(222,057	)		(311,453	)		(78,755	)		(50,730	)		(12,982	)		(675,977	)
Recoveries on loans/leases previously charged off		22,059			34,994			11,273			-			19,526			87,852
Balance, ending	$	6,549,378		$	10,277,692		$	3,319,131		$	1,439,185		$	1,481,638		$	23,067,024

	Three Months Ended June 30, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate		Installment and Other Consumer			Total
Balance, beginning	$	4,466,264		$	12,188,953		$	2,296,523		$	966,336	$	851,386		$	20,769,462
Provisions (credits) charged to expense		348,298			672,077			340,137			195,774		(36,149	)		1,520,137
Loans/leases charged off		(38,685	)		(820,725	)		(449,622	)		-		(23,875	)		(1,332,907	)
Recoveries on loans/leases previously charged off		14,951			150,192			567			3,231		30,746			199,687
Balance, ending	$	4,790,828		$	12,190,497		$	2,187,605		$	1,165,341	$	822,108		$	21,156,379

	Six Months Ended June 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	5,648,774		$	10,705,434		$	2,517,217		$	1,395,849		$	1,180,774		$	21,448,048
Provisions (credits) charged to expense		1,078,508			(263,491	)		919,021			96,675			265,328			2,096,041
Loans/leases charged off		(226,080	)		(315,551	)		(144,488	)		(53,442	)		(15,737	)		(755,298	)
Recoveries on loans/leases previously charged off		48,176			151,300			27,381			103			51,273			278,233
Balance, ending	$	6,549,378		$	10,277,692		$	3,319,131		$	1,439,185		$	1,481,638		$	23,067,024

	Six Months Ended June 30, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	4,531,545		$	11,069,502		$	1,990,395		$	1,070,328		$	1,263,434		$	19,925,204
Provisions (credits) charged to expense		260,491			1,786,371			718,760			204,673			(392,376	)		2,577,919
Loans/leases charged off		(38,900	)		(820,725	)		(522,671	)		(112,891	)		(140,487	)		(1,635,674	)
Recoveries on loans/leases previously charged off		37,692			155,349			1,121			3,231			91,537			288,930
Balance, ending	$	4,790,828		$	12,190,497		$	2,187,605		$	1,165,341		$	822,108		$	21,156,379

	As of June 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for loans/leases individually evaluated for impairment	$	848,593		$	2,567,526		$	534,043		$	237,358		$	471,025		$	4,658,545
Allowance for loans/leases collectively evaluated for impairment		5,700,785			7,710,166			2,785,088			1,201,827			1,010,613			18,408,479
	$	6,549,378		$	10,277,692		$	3,319,131		$	1,439,185		$	1,481,638		$	23,067,024
Loans/leases individually evaluated for impairment	$	2,104,768		$	11,264,502		$	1,791,828		$	1,795,128		$	1,294,726		$	18,250,952
Loans/leases collectively evaluated for impairment		478,389,553			672,111,239			153,212,190			151,404,591			70,148,673			1,525,266,246
	$	480,494,321		$	683,375,741		$	155,004,018		$	153,199,719		$	71,443,399		$	1,543,517,198
Allowance as a percentage of loans/leases individually evaluated for impairment		40.32	%		22.79	%		29.80	%		13.22	%		36.38	%		25.52	%
Allowance as a percentage of loans/leases collectively evaluated for impairment		1.19	%		1.15	%		1.82	%		0.79	%		1.44	%		1.21	%
		1.36	%		1.50	%		2.14	%		0.94	%		2.07	%		1.49	%

	As of December 31, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for loans/leases individually evaluated for impairment	$	927,453		$	3,174,704		$	192,847		$	246,266		$	467,552		$	5,008,822
Allowance for loans/leases collectively evaluated for impairment		4,721,321			7,530,730			2,324,370			1,149,583			713,222			16,439,226
	$	5,648,774		$	10,705,434		$	2,517,217		$	1,395,849		$	1,180,774		$	21,448,048
Loans/leases individually evaluated for impairment	$	1,761,850		$	12,956,915		$	894,458		$	2,116,747		$	1,350,450		$	19,080,420
Loans/leases collectively evaluated for impairment		429,926,279			658,796,014			128,006,984			145,239,576			74,683,360			1,436,652,213
	$	431,688,129		$	671,752,929		$	128,901,442		$	147,356,323		$	76,033,810		$	1,455,732,633
Allowance as a percentage of loans/leases individually evaluated for impairment		52.64	%		24.50	%		21.56	%		11.63	%		34.62	%		26.25	%
Allowance as a percentage of loans/leases collectively evaluated for impairment		1.10	%		1.14	%		1.82	%		0.79	%		0.95	%		1.14	%
		1.31	%		1.59	%		1.95	%		0.95	%		1.55	%		1.47	%

Impaired Financing Receivables [Table Text Block]

	Three Months Ended June 30, 2014						Three Months Ended June 30, 2013
Classes of Loans/Leases	Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received
Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	589,889	$	11	$	11	$	613,506	$	1,937	$	1,937
Commercial Real Estate						-
Owner-Occupied Commercial Real Estate		383,861		-		-		3,107,106		-		-
Commercial Construction, Land Development, and Other Land		1,642,205		-		-		325,000		-		-
Other Non Owner-Occupied Commercial Real Estate		2,222,582		-		-		353,972		657		657
Direct Financing Leases		700,607		-		-		822,718		-		-
Residential Real Estate		1,014,286		720		720		1,057,657		-		-
Installment and Other Consumer		465,820		890		890		915,478		2,686		2,686
	$	7,019,250	$	1,621	$	1,621	$	7,195,437	$	5,280	$	5,280
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	989,979	$	-	$	-	$	1,229,737	$	15,307	$	15,307
Commercial Real Estate						-
Owner-Occupied Commercial Real Estate		334,236		-		-		653,815		-		-
Commercial Construction, Land Development, and Other Land		602,498		-		-		3,656,226		2,716		2,716
Other Non Owner-Occupied Commercial Real Estate		6,057,384		-		-		10,143,708		-		-
Direct Financing Leases		855,628		-		-		133,038		-		-
Residential Real Estate		779,104		4		4		302,334		-		-
Installment and Other Consumer		817,994		-		-		430,427		-		-
	$	10,436,823	$	4	$	4	$	16,549,285	$	18,023	$	18,023
Total Impaired Loans/Leases:
Commercial and Industrial	$	1,579,868	$	11	$	11	$	1,843,243	$	17,244	$	17,244
Commercial Real Estate
Owner-Occupied Commercial Real Estate		718,097		-		-		3,760,921		-		-
Commercial Construction, Land Development, and Other Land		2,244,703		-		-		3,981,226		2,716		2,716
Other Non Owner-Occupied Commercial Real Estate		8,279,966		-		-		10,497,680		657		657
Direct Financing Leases		1,556,235		-		-		955,756		-		-
Residential Real Estate		1,793,390		724		724		1,359,991		-		-
Installment and Other Consumer		1,283,814		890		890		1,345,905		2,686		2,686
	$	17,456,073	$	1,625	$	1,625	$	23,744,722	$	23,303	$	23,303

Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Interest Income Recognized for Cash Payments Received
Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	575,419	$	730,020	$	-	$	631,165	$	1,899	$	1,899
Commercial Real Estate
Owner-Occupied Commercial Real Estate		380,931		380,931		-		410,136		-		-
Commercial Construction, Land Development, and Other Land		1,622,016		1,856,416		-		1,923,766		-		-
Other Non Owner-Occupied Commercial Real Estate		1,941,116		1,941,116		-		2,695,138		13,283		13,283
Direct Financing Leases		793,247		793,247		-		651,516		-		-
Residential Real Estate		954,464		954,464		-		1,137,735		2,175		2,175
Installment and Other Consumer		457,611		457,611		-		501,576		1,780		1,780
	$	6,724,804	$	7,113,805	$	-	$	7,951,032	$	19,137	$	19,137
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	1,529,349	$	2,049,051	$	848,593	$	855,050	$	-	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		552,923		552,923		176,287		223,337		-		-
Commercial Construction, Land Development, and Other Land		600,920		600,920		461,671		605,198		-		-
Other Non Owner-Occupied Commercial Real Estate		6,166,596		6,866,187		1,929,568		5,974,240		-		-
Direct Financing Leases		998,581		998,581		534,043		648,487		-		-
Residential Real Estate		840,664		840,664		237,358		767,008		778		778
Installment and Other Consumer		837,115		837,115		471,025		788,112		-		-
	$	11,526,148	$	12,745,441	$	4,658,545	$	9,861,432	$	778	$	778
Total Impaired Loans/Leases:
Commercial and Industrial	$	2,104,768	$	2,779,071	$	848,593	$	1,486,215	$	1,899	$	1,899
Commercial Real Estate
Owner-Occupied Commercial Real Estate		933,854		933,854		176,287		633,473		-		-
Commercial Construction, Land Development, and Other Land		2,222,936		2,457,336		461,671		2,528,964		-		-
Other Non Owner-Occupied Commercial Real Estate		8,107,712		8,807,303		1,929,568		8,669,378		13,283		13,283
Direct Financing Leases		1,791,828		1,791,828		534,043		1,300,003		-		-
Residential Real Estate		1,795,128		1,795,128		237,358		1,904,743		2,953		2,953
Installment and Other Consumer		1,294,726		1,294,726		471,025		1,289,688		1,780		1,780
	$	18,250,952	$	19,859,246	$	4,658,545	$	17,812,464	$	19,915	$	19,915

Information for Impaired Loans Leases [Table Text Block]

Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired Loans/Leases with No Specific Allowance Recorded:
Commercial and Industrial	$	492,622	$	568,951	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		392,542		392,542		-
Commercial Construction, Land Development, and Other Land		1,943,168		2,054,368		-
Other Non Owner-Occupied Commercial Real Estate		1,790,279		1,902,279		-
Direct Financing Leases		557,469		557,469		-
Residential Real Estate		1,071,927		1,071,927		-
Installment and Other Consumer		509,667		509,667		-
	$	6,757,674	$	7,057,203	$	-
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	1,269,228	$	1,956,755	$	927,453
Commercial Real Estate
Owner-Occupied Commercial Real Estate		159,247		159,247		67,498
Commercial Construction, Land Development, and Other Land		888,547		1,011,747		503,825
Other Non Owner-Occupied Commercial Real Estate		7,783,132		8,488,414		2,603,381
Direct Financing Leases		336,989		336,989		192,847
Residential Real Estate		1,044,820		1,044,820		246,266
Installment and Other Consumer		840,783		840,783		467,552
	$	12,322,746	$	13,838,755	$	5,008,822
Total Impaired Loans/Leases:
Commercial and Industrial	$	1,761,850	$	2,525,706	$	927,453
Commercial Real Estate
Owner-Occupied Commercial Real Estate		551,789		551,789		67,498
Commercial Construction, Land Development, and Other Land		2,831,715		3,066,115		503,825
Other Non Owner-Occupied Commercial Real Estate		9,573,411		10,390,693		2,603,381
Direct Financing Leases		894,458		894,458		192,847
Residential Real Estate		2,116,747		2,116,747		246,266
Installment and Other Consumer		1,350,450		1,350,450		467,552
	$	19,080,420	$	20,895,958	$	5,008,822

Financing Receivable Credit Quality Indicators [Table Text Block]

	As of June 30, 2014
			Commercial Real Estate
					Non Owner-Occupied
Internally Assigned Risk Rating	Commercial and Industrial		Owner-Occupied Commercial Real Estate		Commercial Construction, Land Development, and Other Land		Other Commercial Real Estate		Total
Pass (Ratings 1 through 5)	$	444,280,023	$	228,602,988	$	54,249,436	$	349,022,456	$	1,076,154,903
Special Mention (Rating 6)		22,616,136		10,214,621		-		1,475,286		34,306,043
Substandard (Rating 7)		13,598,162		8,778,542		3,792,653		27,239,759		53,409,116
Doubtful (Rating 8)		-		-		-		-		-
	$	480,494,321	$	247,596,151	$	58,042,089	$	377,737,501	$	1,163,870,062

	As of December 31, 2013
			Commercial Real Estate
					Non Owner-Occupied
Internally Assigned Risk Rating	Commercial and Industrial		Owner-Occupied Commercial Real Estate		Commercial Construction, Land Development, and Other Land		Other Commercial Real Estate		Total
Pass (Ratings 1 through 5)	$	407,294,743	$	250,028,731	$	51,868,919	$	326,168,882	$	1,035,361,275
Special Mention (Rating 6)		11,355,713		8,318,232		1,588,086		3,310,017		24,572,048
Substandard (Rating 7)		13,037,673		2,868,949		4,387,897		23,213,216		43,507,735
Doubtful (Rating 8)		-		-		-		-		-
	$	431,688,129	$	261,215,912	$	57,844,902	$	352,692,115	$	1,103,441,058

Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent [Table Text Block]

	As of June 30, 2014
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total
Performing	$	153,199,022	$	151,404,592	$	70,140,027	$	374,743,641
Nonperforming		1,804,996		1,795,127		1,303,372		4,903,495
	$	155,004,018	$	153,199,719	$	71,443,399	$	379,647,136

	As of December 31, 2013
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total
Performing	$	128,006,984	$	145,345,719	$	74,688,039	$	348,040,742
Nonperforming		894,458		2,010,604		1,345,771		4,250,833
	$	128,901,442	$	147,356,323	$	76,033,810	$	352,291,575

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	For the three months ended June 30, 2014								For the three months ended June 30, 2013
Classes of Loans/Leases	Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance		Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance
CONCESSION - Significant payment delay
Commercial and Industrial		3	$	889,154	$	889,154	$	239,783		-	$	-	$	-	$	-
Residential Real Estate		-	$	-	$	-	$	-		1	$	91,581	$	91,581	$	-
Installment and Other Consumer		-	$	-	$	-	$	-		1	$	370,000	$	370,000	$	-
		3	$	889,154	$	889,154	$	239,783		2	$	461,581	$	461,581	$	-
CONCESSION - Interest rate adjusted below market
Commercial Construction, Land Development, and Other Land		-	$	-	$	-	$	-		1	$	337,500	$	337,500	$	-
Residential Real Estate		-	$	-	$	-	$	-		1	$	160,627	$	160,627	$	-
		-	$	-	$	-	$	-		2	$	498,127	$	498,127	$	-
CONCESSION - Other
Commercial and Industrial		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
TOTAL		4	$	1,317,003	$	1,317,003	$	353,232		4	$	959,708	$	959,708	$	-

	For the six months ended June 30, 2014								For the six months ended June 30, 2013
Classes of Loans/Leases	Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance		Number of Loans / Leases		Pre-Modification Recorded Investment		Post-Modification Recorded Investment		Specific Allowance
CONCESSION - Significant payment delay
Commercial and Industrial		3	$	889,154	$	889,154	$	239,783		-	$	-	$	-	$	-
Owner-Occupied Commercial Real Estate		-	$	-	$	-	$	-		1	$	47,958	$	47,958	$	-
Direct Financing Leases		1	$	89,443	$	89,443	$	-		-	$	-	$	-	$	-
Residential Real Estate		-	$	-	$	-		-		1	$	91,581	$	91,581	$	-
Installment and Other Consumer		-	$	-	$	-		-		1	$	370,000	$	370,000	$	-
		4	$	978,597	$	978,597	$	239,783		3	$	509,539	$	509,539	$	-
CONCESSION - Interest rate adjusted below market
Commercial Construction, Land Development, and Other Land		-	$	-	$	-	$	-		1	$	337,500	$	337,500	$	-
Residential Real Estate		-	$	-	$	-	$	-		1	$	160,627	$	160,627	$	-
		-	$	-	$	-	$	-		2	$	498,127	$	498,127	$	-
CONCESSION - Extension of maturity
Commercial and Industrial		-	$	-	$	-	$	-		3	$	809,494	$	809,494	$	188,700
Direct Financing Leases		1	$	70,144	$	70,144	$	24,246		-	$	-	$	-	$	-
		1	$	70,144	$	70,144	$	24,246		3	$	809,494	$	809,494	$	188,700
CONCESSION - Other
Commercial and Industrial		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
TOTAL		6	$	1,476,590	$	1,476,590	$	377,478		8	$	1,817,160	$	1,817,160	$	188,700