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 September 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) 743-7724

(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 November 1, 2014, the Registrant had outstanding 7,942,188 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 As of September 30, 2014 and December 31, 2013	2
		Consolidated Statements of Income For the Three Months Ended September 30, 2014 and 2013	3
		Consolidated Statements of Income For the Nine Months Ended September 30, 2014 and 2013	4
		Consolidated Statements of Comprehensive Income (Loss) For the Three and Nine Months Ended September 30, 2014 and 2013	5
		Consolidated Statements of Changes in Stockholders' Equity For the Nine Months Ended September 30, 2014 and 2013	6-7
		Consolidated Statements of Cash Flows For the Nine Months Ended September 30, 2014 and 2013	8-9
		Notes to the Consolidated Financial Statements	10-34
	Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	35-64
	Item 3	Quantitative and Qualitative Disclosures About Market Risk	65-67
	Item 4	Controls and Procedures	68
Part II	OTHER INFORMATION
	Item 1	Legal Proceedings	69
	Item 1A	Risk Factors	69
	Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	69
	Item 3	Defaults upon Senior Securities	69
	Item 4	Mine Safety Disclosures	69
	Item 5	Other Information	69
	Item 6	Exhibits	70
Signatures			71

1

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of September 30, 2014 and December 31, 2013

	September 30,			December 31,
	2014			2013
ASSETS
Cash and due from banks	$	42,326,177		$	41,950,790
Federal funds sold		29,760,000			39,435,000
Interest-bearing deposits at financial institutions		34,631,773			33,044,917
Securities held to maturity, at amortized cost		185,840,139			145,451,895
Securities available for sale, at fair value		466,944,567			551,758,458
Total securities		652,784,706			697,210,353
Loans receivable held for sale		1,642,300			1,358,290
Loans/leases receivable held for investment		1,571,226,845			1,458,921,268
Gross loans/leases receivable		1,572,869,145			1,460,279,558
Less allowance for estimated losses on loans/leases		(22,767,917	)		(21,448,048	)
Net loans/leases receivable		1,550,101,228			1,438,831,510
Premises and equipment, net		36,001,748			36,755,364
Goodwill		3,222,688			3,222,688
Core deposit intangible		1,720,799			1,870,433
Bank-owned life insurance		53,278,942			52,002,041
Restricted investment securities		15,303,175			17,027,625
Other real estate owned, net		10,679,847			9,729,053
Other assets		20,784,470			23,873,150
Total assets	$	2,450,595,553		$	2,394,952,924
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$	535,967,035		$	542,566,087
Interest-bearing		1,177,900,358			1,104,425,156
Total deposits		1,713,867,393			1,646,991,243
Short-term borrowings		162,186,698			149,292,967
Federal Home Loan Bank advances		196,500,000			231,350,000
Other borrowings		151,455,209			142,448,362
Junior subordinated debentures		40,389,809			40,289,830
Other liabilities		48,016,468			37,003,742
Total liabilities		2,312,415,577			2,247,376,144
STOCKHOLDERS' EQUITY
Preferred stock, $1 par value; shares authorized 250,000		-			29,867
September 2014 - 0 shares issued and outstanding
December 2013 - 29,867 shares issued and outstanding
Common stock, $1 par value; shares authorized 20,000,000		8,058,059			8,005,708
September 2014 - 8,058,059 shares issued and 7,936,813 outstanding
December 2013 - 8,005,708 shares issued and 7,884,462 outstanding
Additional paid-in capital		61,277,831			90,154,528
Retained earnings		75,199,959			64,637,173
Accumulated other comprehensive loss:
Securities available for sale		(4,596,938	)		(13,643,986	)
Interest rate cap derivatives		(152,425	)		-
Less treasury stock, September 2014 and December 2013 - 121,246 common shares, at cost		(1,606,510	)		(1,606,510	)
Total stockholders' equity		138,179,976			147,576,780
Total liabilities and stockholders' equity	$	2,450,595,553		$	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 September 30,

	2014		2013
Interest and dividend income:
Loans/leases, including fees	$	17,735,190	$	18,262,579
Securities:
Taxable		2,327,836		2,417,515
Nontaxable		1,531,534		1,090,880
Interest-bearing deposits at financial institutions		66,397		72,808
Restricted investment securities		128,153		143,640
Federal funds sold		7,532		8,821
Total interest and dividend income		21,796,642		21,996,243
Interest expense:
Deposits		1,168,385		1,393,745
Short-term borrowings		64,665		57,277
Federal Home Loan Bank advances		1,497,456		1,704,824
Other borrowings		1,279,626		1,201,498
Junior subordinated debentures		311,179		328,563
Total interest expense		4,321,311		4,685,907
Net interest income		17,475,331		17,310,336
Provision for loan/lease losses		1,063,323		1,366,984
Net interest income after provision for loan/lease losses		16,412,008		15,943,352
Noninterest income:
Trust department fees		1,355,700		1,312,349
Investment advisory and management fees		726,908		634,446
Deposit service fees		1,168,961		1,228,685
Gains on sales of residential real estate loans		120,627		184,596
Gains on sales government guaranteed portions of loans		158,736		338,338
Securities gains		19,429		416,936
Earnings on bank-owned life insurance		434,065		466,028
Income (losses) on other real estate owned, net		30,596		(36,745	)
Other		1,052,620		1,390,020
Total noninterest income		5,067,642		5,934,653
Noninterest expense:
Salaries and employee benefits		10,358,783		9,802,712
Occupancy and equipment expense		1,805,949		1,914,996
Professional and data processing fees		1,530,139		1,902,799
FDIC and other insurance		711,792		712,954
Loan/lease expense		184,908		396,477
Advertising and marketing		555,076		406,085
Postage and telephone		146,759		276,580
Stationery and supplies		138,377		143,226
Bank service charges		337,067		306,539
Acquisition and data conversion costs		-		388,663
Other		619,259		776,237
Total noninterest expense		16,388,109		17,027,268
Net income before income taxes		5,091,541		4,850,737
Federal and state income tax expense		1,028,876		1,038,793
Net income	$	4,062,665	$	3,811,944
Less: Preferred stock dividends		-		810,837
Net income attributable to QCR Holdings, Inc. common stockholders	$	4,062,665	$	3,001,107
Earnings per common share attributable to QCR Holdings, Inc. common shareholders
Basic	$	0.51	$	0.52
Diluted	$	0.50	$	0.51
Weighted average common shares outstanding		7,931,944		5,806,019
Weighted average common and common equivalent shares outstanding		8,053,985		5,915,279
Cash dividends declared per common share	$	-	$	-

See Notes to Consolidated Financial Statements (Unaudited)

3

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Nine Months Ended September 30,

	2014			2013
Interest and dividend income:
Loans/leases, including fees	$	51,379,586		$	49,721,011
Securities:
Taxable		7,484,279			7,507,796
Nontaxable		4,434,005			2,837,453
Interest-bearing deposits at financial institutions		228,167			194,286
Restricted investment securities		396,648			399,896
Federal funds sold		14,544			12,684
Total interest and dividend income		63,937,229			60,673,126
Interest expense:
Deposits		3,371,593			3,687,391
Short-term borrowings		177,172			224,979
Federal Home Loan Bank advances		4,549,412			5,164,258
Other borrowings		3,625,751			3,555,146
Junior subordinated debentures		923,386			831,647
Total interest expense		12,647,314			13,463,421
Net interest income		51,289,915			47,209,705
Provision for loan/lease losses		3,159,364			3,944,903
Net interest income after provision for loan/lease losses		48,130,551			43,264,802
Noninterest income:
Trust department fees		4,300,456			3,549,200
Investment advisory and management fees		2,086,758			1,938,881
Deposit service fees		3,306,769			3,190,731
Gains on sales of residential real estate loans		317,085			722,368
Gains on sales government guaranteed portions of loans		860,923			1,949,300
Securities gains		40,625			433,396
Earnings on bank-owned life insurance		1,276,901			1,328,598
Bargain purchase gain on Community National Acquisition		-			1,841,385
Losses on other real estate owned, net		(114,109	)		(566,714	)
Other		3,083,288			3,700,293
Total noninterest income		15,158,696			18,087,438
Noninterest expense:
Salaries and employee benefits		30,298,892			27,731,628
Occupancy and equipment expense		5,539,208			4,930,707
Professional and data processing fees		4,518,460			4,481,613
FDIC and other insurance		2,121,907			1,896,255
Loan/lease expense		908,036			893,436
Advertising and marketing		1,394,211			1,082,694
Postage and telephone		695,555			752,882
Stationery and supplies		435,763			404,614
Bank service charges		959,496			866,379
Acquisition and data conversion costs		-			1,177,567
Other		1,763,530			2,002,342
Total noninterest expense		48,635,058			46,220,117
Net income before income taxes		14,654,189			15,132,123
Federal and state income tax expense		2,694,473			4,009,804
Net income	$	11,959,716		$	11,122,319
Less: Preferred stock dividends		1,081,877			2,432,512
Net income attributable to QCR Holdings, Inc. common stockholders	$	10,877,839		$	8,689,807
Earnings per common share attributable to QCR Holdings, Inc. common shareholders
Basic	$	1.37		$	1.62
Diluted	$	1.35		$	1.59
Weighted average common shares outstanding		7,919,201			5,375,557
Weighted average common and common equivalent shares outstanding		8,040,418			5,482,298
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 Nine Months Ended September 30, 2014 and 2013

	Three Months Ended September 30,
	2014			2013
Net income	$	4,062,665		$	3,811,944
Other comprehensive income loss:
Unrealized losses on securities available for sale:
Unrealized holding losses arising during the period before tax		(1,455,231	)		(800,796	)
Less reclassification adjustment for gains included in net income before tax		19,429			416,936
		(1,474,660	)		(1,217,732	)
Unrealized gain on derivative instruments		98,724			-
Other comprehensive loss, before tax		(1,375,936	)		(1,217,732	)
Tax benefit		(563,761	)		(399,541	)
Other comprehensive loss, net of tax		(812,175	)		(818,191	)
Comprehensive income attributable to QCR Holdings, Inc.	$	3,250,490		$	2,993,753

	Nine Months Ended September 30,
	2014			2013
Net income	$	11,959,716		$	11,122,319
Other comprehensive income (loss):
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period before tax		14,691,007			(23,395,367	)
Less reclassification adjustment for gains included in net income before tax		40,625			433,396
		14,650,382			(23,828,763	)
Unrealized losses on derivative instruments		(152,425	)		-
Other comprehensive income (loss), before tax		14,497,957			(23,828,763	)
Tax expense (benefit)		5,603,334			(9,082,725	)
Other comprehensive income (loss), net of tax		8,894,623			(14,746,038	)
Comprehensive income (loss) attributable to QCR Holdings, Inc.	$	20,854,339		$	(3,623,719	)

See Notes to Consolidated Financial Statements (Unaudited)

5

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)

Nine Months Ended September 30, 2014

	Preferred Stock			Common Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury 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 - unrealized gains on securities available for sale		-			-			-			-			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 - unrealized gains on securities available for sale of $4,727,163, unrealized losses on interest rate cap derivatives of ($251,149)		-			-			-			-			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
Net income		-			-			-			4,062,665			-			-			4,062,665
Other comprehensive loss, net of tax - unrealized losses on securities available for sale of ($910,899), unrealized gains on interest rate cap derivatives $98,724		-			-			-			-			(812,175	)		-			(812,175	)
Proceeds from issuance of 5,481 shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan		-			5,481			78,533			-			-			-			84,014
Proceeds from issuance of 2,400 shares of common stock as a result of stock options exercised		-			2,400			19,097			-			-			-			21,497
Tax benefit of nonqualified stock options exercised								5,189												5,189
Stock compensation expense		-			-			176,257												176,257
Restricted stock awards		-			289			(289	)		-			-			-			-
Balance September 30, 2014	$	-		$	8,058,059		$	61,277,831		$	75,199,959		$	(4,749,363	)	$	(1,606,510	)	$	138,179,976

(Continued)

6

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - continued

Nine Months Ended September 30, 2013

	Preferred Stock		Common Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury 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 - unrealized losses on securities available for sale		-		-			-			-			(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 - unrealized losses on securities available for sale		-		-			-			-			(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
Net income		-		-			-			3,811,944			-			-			3,811,944
Other comprehensive loss, net of tax - unrealized losses on securities available for sale		-		-			-			-			(818,191	)		-			(818,191	)
Preferred cash dividends declared		-		-			-			(810,837	)		-			-			(810,837	)
Proceeds from issuance of 5,973 shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan		-		5,973			65,116			-			-			-			71,089
Proceeds from issuance of 7,230 shares of common stock as a result of stock options exercised		-		7,230			76,718			-			-			-			83,948
Tax benefit of nonqualified stock options exercised							6,026												6,026
Stock compensation expense		-		-			163,585												163,585
Restricted stock awards		-		332			(332	)		-			-			-			-
Balance September 30, 2013	$	54,867	$	5,931,848		$	91,825,249		$	61,787,378		$	(10,039,355	)	$	(1,606,510	)	$	147,953,477

See Notes to Consolidated Financial Statements (Unaudited)

7

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Nine Months Ended September 30, 2014 and 2013

	2014			2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	11,959,716		$	11,122,319
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		2,092,992			1,995,829
Provision for loan/lease losses		3,159,364			3,944,903
Stock-based compensation expense		703,274			619,506
Deferred compensation expense accrued		996,941			623,781
Losses on other real estate owned, net		114,109			566,714
Amortization of premiums on securities, net		1,470,641			2,862,396
Securities gains		(40,625	)		(433,396	)
Loans originated for sale		(32,643,486	)		(70,569,738	)
Proceeds on sales of loans		33,537,484			76,372,739
Gains on sales of residential real estate loans		(317,085	)		(722,368	)
Gains on sales of government guaranteed portions of loans		(860,923	)		(1,949,300	)
Amortization of core deposit intangible		149,634			129,003
Accretion of acquisition fair value adjustments, net		(549,604	)		(592,620	)
Gain on the sale of premises and equipment		(42,554	)		-
Increase in cash value of bank-owned life insurance		(1,276,901	)		(1,328,598	)
Bargain purchase gain on Community National acquisition		-			(1,841,385	)
Decrease (increase) in other assets		(595,429	)		7,319,681
Increase in other liabilities		687,445			2,553,307
Net cash provided by operating activities	$	18,544,993		$	30,672,773
CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease (increase) in federal funds sold		9,675,000			(9,297,000	)
Net decrease (increase) in interest-bearing deposits at financial institutions		(1,586,856	)		8,521,233
Proceeds from sales of other real estate owned		1,172,365			662,586
Purchase of derivative instruments		(2,071,650	)		-
Activity in securities portfolio:
Purchases		(48,493,532	)		(297,033,410	)
Calls, maturities and redemptions		30,827,423			138,661,369
Paydowns		19,147,455			38,967,219
Sales		65,754,467			37,393,047
Activity in restricted investment securities:
Purchases		(1,653,450	)		(6,184,250	)
Redemptions		3,377,900			7,243,400
Net increase in loans/leases originated and held for investment		(115,589,620	)		(65,747,455	)
Net cash received from the sale of premises and equipment		291,006			-
Purchase of premises and equipment		(1,587,828	)		(1,597,434	)
Net cash received from Community National acquisition		-			3,025,073
Net cash used in investing activities	$	(40,737,320	)	$	(145,385,622	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposit accounts		66,893,213			112,711,191
Net increase (decrease) in short-term borrowings		12,893,731			(1,823,399	)
Activity in Federal Home Loan Bank advances:
Advances		17,000,000			163,000,000
Calls and maturities		(51,850,000	)		(160,000,000	)
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		(1,964,607	)		(2,853,434	)
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		419,299			384,315
Net cash provided by financing activities	$	22,567,714		$	111,868,673
Net increase (decrease) in cash and due from banks		375,387			(2,844,176	)
Cash and due from banks, beginning		41,950,790			61,568,446
Cash and due from banks, ending	$	42,326,177		$	58,724,270

(Continued)

8

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - continued

Nine Months Ended September 30, 2014 and 2013

	2014			2013
Supplemental disclosure of cash flow information, cash payments for:
Interest	$	12,445,044		$	13,546,215
Income/franchise taxes	$	3,457,500		$	1,371,120
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	$	8,894,623		$	(14,746,038	)
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	$	2,237,268		$	5,220,235
Change in due to broker	$	9,750,000		$	-
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)

9

Part I

Item 1

QCR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

September 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 September 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, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 and is not expected to have a significant impact 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.

10

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.

In August 2014, FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure. ASU 2014-14 requires creditors to reclassify loans that are within the scope of the ASU to “other receivables” upon foreclosure, rather than reclassifying them as other real estate owned. The most common types of government guaranteed loans include those guaranteed by the Federal Housing Authority (FHA), U.S. Department of Housing and Urban Development (HUD), U.S. Department of Veterans Affairs (VA) and the U.S. Small Business Administration (SBA). The separate other receivable recorded upon foreclosure is to be measured based on the amount of the loan balance (principal and interest) the creditor expects to recover from the guarantor. ASU 2014-14 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014 and is not expected to have a significant impact on the Company’s consolidated financial statements.

Allowance for estimated losses on loans/leases: The Company has certain loans risk-rated 7 (substandard), which are not classified as impaired based on the facts of the credit.  For these non-impaired and risk-rated 7 loans, the Company does not provide a general allowance as it does for all other non-impaired loans. Rather, the Company performs a more precise analysis including evaluation of the cash flow and collateral valuation for each individual credit.  A specific allowance is established based upon this evaluation. These non-impaired risk-rated 7 loans exist primarily in the commercial and industrial and commercial real estate segments.

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.

11

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

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		(Losses)			Value
September 30, 2014
Securities held to maturity:
Municipal securities	$	184,790,139	$	1,861,338	$	(1,765,426	)	$	184,886,051
Other securities		1,050,000		-		-			1,050,000
	$	185,840,139	$	1,861,338	$	(1,765,426	)	$	185,936,051
Securities available for sale:
U.S. govt. sponsored agency securities	$	315,019,934	$	30,913	$	(9,046,242	)	$	306,004,605
Residential mortgage-backed and related securities		127,822,284		1,372,274		(1,414,809	)		127,779,749
Municipal securities		30,209,955		1,149,656		(99,465	)		31,260,146
Other securities		1,354,116		545,951		-			1,900,067
	$	474,406,289	$	3,098,794	$	(10,560,516	)	$	466,944,567
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.

12

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 September 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
September 30, 2014:
Securities held to maturity:
Municipal securities	$	29,794,026	$	(633,024	)	$	43,172,941	$	(1,132,402	)	$	72,966,967	$	(1,765,426	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	32,208,945	$	(156,930	)	$	262,773,625	$	(8,889,312	)	$	294,982,570	$	(9,046,242	)
Residential mortgage-backed and related securities		10,125,288		(74,264	)		58,008,272		(1,340,545	)		68,133,560		(1,414,809	)
Municipal securities		1,446,532		(3,113	)		5,616,381		(96,352	)		7,062,913		(99,465	)
	$	43,780,765	$	(234,307	)	$	326,398,278	$	(10,326,209	)	$	370,179,043	$	(10,560,516	)
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 September 30, 2014, the investment portfolio included 505 securities. Of this number, 241 securities had current unrealized losses with aggregate depreciation of less than 3% from the total amortized cost basis. Of these, 190 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 September 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 nine months ended September 30, 2014 and 2013. 

13

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

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

	Three Months Ended						Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
Proceeds from sales of securities	$	39,876,889		$	31,225,516		$	65,754,467		$	37,393,047
Pre-tax gross gains from sales of securities		357,934			506,611			379,130			523,071
Pre-tax gross losses from sales of securities		(338,505	)		(89,675	)		(338,505	)		(89,675	)

The amortized cost and fair value of securities as of September 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	$	12,682,406	$	12,683,453
Due after one year through five years		16,825,667		16,856,667
Due after five years		156,332,066		156,395,931
	$	185,840,139	$	185,936,051
Securities available for sale:
Due in one year or less	$	3,649,998	$	3,664,418
Due after one year through five years		60,972,541		60,242,076
Due after five years		280,607,350		273,358,257
	$	345,229,889	$	337,264,751
Residential mortgage-backed and related securities		127,822,284		127,779,749
Other securities		1,354,116		1,900,067
	$	474,406,289	$	466,944,567

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	$	99,883,698	$	100,074,857
Securities available for sale:
U.S. govt. sponsored agency securities		250,617,040		243,092,527
Municipal securities		18,473,306		18,985,950
	$	269,090,346	$	262,078,477

14

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

The Company had available for sale municipal securities with a fair value of $31.3 million and $36.0 million as of September 30, 2014 and December 31, 2013, respectively. In addition, the Company had held to maturity municipal securities which were reported at amortized cost totaling $184.8 million and $144.4 million as of September 30, 2014 and December 31, 2013, respectively.

As of September 30, 2014, the Company’s municipal securities portfolios were comprised of general obligation bonds with fair values totaling $63.2 million and revenue bonds issued by 272 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $153.0 million. The Company held investments in general obligation bonds in 19 states, including three states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in eight states, including four states in which the aggregate fair value exceeded $5.0 million.

As of December 31, 2013, the Company’s municipal securities portfolios were comprised of general obligation bonds with fair values totaling $54.2 million and revenue bonds issued by 269 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $119.3 million. The Company held investments in general obligation bonds in 20 states, including two states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in eight states, including four states in which the aggregate fair value exceeded $5.0 million.

The amortized cost and fair values of the Company’s portfolio of general obligation bonds are summarized in the following tables by the issuer’s state:

September 30, 2014:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Illinois		32	$	23,058,258	$	23,431,499	$	732,234
Iowa		25		16,557,625		16,746,965		669,879
Missouri		12		6,136,797		6,097,169		508,097
Other		52		16,674,720		16,908,510		325,164
Total general obligation bonds		121	$	62,427,400	$	63,184,143	$	522,183

December 31, 2013:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		30	$	17,946,059	$	17,444,045	$	581,468
Illinois		36		15,063,325		15,264,718		424,020
Other		67		22,166,026		21,512,582		321,083
Total general obligation bonds		133	$	55,175,410	$	54,221,345	$	407,679

The general obligations bonds are diversified across many issuers. As of September 30, 2014 and December 31, 2013, the Company did not hold general obligation bonds of any single issuer, the aggregate book or market value of which exceeded 10% of the Company’s stockholders’ equity. Of the general obligation bonds in the Company’s portfolio, the majority are unrated bonds that represent small, private issuances. All unrated general obligation bonds were underwritten according to loan underwriting standards and have an average risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential services (water, sewer, education, medical facilities).

15

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

The amortized cost and fair values of the Company’s portfolio of revenue bonds are summarized in the following tables by the issuer’s state:

September 30, 2014:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		37	$	59,955,899	$	60,603,053	$	1,637,920
Missouri		65		54,016,464		53,997,386		830,729
Indiana		12		17,991,200		17,835,277		1,486,273
Kansas		6		12,310,134		12,139,318		2,023,220
Other		31		8,298,997		8,387,020		270,549
Total revenue bonds		151	$	152,572,694	$	152,962,054	$	1,012,994

December 31, 2013:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		31	$	47,903,572	$	46,257,997	$	1,492,193
Missouri		57		42,085,249		40,054,613		702,713
Indiana		8		15,020,000		14,324,717		1,790,590
Kansas		5		11,022,382		9,997,068		1,999,414
Other		35		9,009,148		8,693,222		248,378
Total revenue bonds		136	$	125,040,351	$	119,327,617	$	877,409

The revenue bonds are diversified across many issuers. As of September 30, 2014 and December 31, 2013, the Company did not hold revenue bonds of any single issuer, the aggregate book or market value of which exceeded 10% of the Company’s stockholders’ equity. Of the revenue bonds in the Company’s portfolio, the majority are unrated bonds that represent small, private issuances. All unrated revenue bonds were underwritten according to loan underwriting standards and have an average risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential services (water, sewer, education, medical facilities).

The Company’s municipal securities are owned by each of the three charters, whose investment policies set forth limits for various subcategories within the municipal securities portfolio. Each charter is monitored individually and as of September 30, 2014, all were well-within policy limitations approved by the board of directors. Policy limits are calculated as a percentage of total risk-based capital.

As of September 30, 2014, the Company’s regular monitoring of its municipal securities portfolio had not uncovered any facts or circumstances resulting in significantly different credits ratings than those assigned by a nationally recognized statistical rating organization, or in the case of unrated bonds, the rating assigned using the credit underwriting standards.

16

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 September 30, 2014 and December 31, 2013 is presented as follows:

	As of September 30,			As of December 31,
	2014			2013
Commercial and industrial loans	$	479,747,059		$	431,688,129
Commercial real estate loans
Owner-occupied commercial real estate		251,076,360			261,215,912
Commercial construction, land development, and other land		69,856,024			57,844,902
Other non owner-occupied commercial real estate		376,795,649			352,692,115
		697,728,033			671,752,929
Direct financing leases *		162,476,079			128,901,442
Residential real estate loans **		154,954,020			147,356,323
Installment and other consumer loans		71,760,173			76,033,810
		1,566,665,364			1,455,732,633
Plus deferred loan/lease origination costs, net of fees		6,203,781			4,546,925
		1,572,869,145			1,460,279,558
Less allowance for estimated losses on loans/leases		(22,767,917	)		(21,448,048	)
	$	1,550,101,228		$	1,438,831,510
* Direct financing leases:
Net minimum lease payments to be received	$	184,475,603		$	145,662,254
Estimated unguaranteed residual values of leased assets		1,538,482			1,694,499
Unearned lease/residual income		(23,538,006	)		(18,455,311	)
		162,476,079			128,901,442
Plus deferred lease origination costs, net of fees		6,339,575			4,814,183
		168,815,654			133,715,625
Less allowance for estimated losses on leases		(3,106,887	)		(2,517,217	)
	$	165,708,767		$	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 nine months ended September 30, 2014 and 2013.

**Includes residential real estate loans held for sale totaling $1,642,300 and $1,358,290 as of September 30, 2014, and December 31, 2013, respectively. 

17

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 September 30, 2014 and December 31, 2013 is presented as follows:

	As of September 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	$	470,898,126		$	638,002		$	284,380		$	-		$	7,926,551		$	479,747,059
Commercial Real Estate
Owner-Occupied Commercial Real Estate		249,903,102			-			-			-			1,173,258			251,076,360
Commercial Construction, Land Development, and Other Land		68,732,309			510,364			-			-			613,351			69,856,024
Other Non Owner-Occupied Commercial Real Estate		363,737,989			266,956			25,543			-			12,765,161			376,795,649
Direct Financing Leases		159,714,653			699,590			392,119			-			1,669,717			162,476,079
Residential Real Estate		153,145,275			49,543			382,281			51,094			1,325,827			154,954,020
Installment and Other Consumer		70,404,267			284,429			203,591			4,312			863,574			71,760,173
	$	1,536,535,721		$	2,448,884		$	1,287,914		$	55,406		$	26,337,439		$	1,566,665,364
As a percentage of total loan/lease portfolio		98.08	%		0.16	%		0.08	%		0.00	%		1.68	%		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	%

18

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

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

	As of September 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	$	-	$	7,926,551	$	1,437,974	$	9,364,525		32.83	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		-		1,173,258		-		1,173,258		4.11	%
Commercial Construction, Land Development, and Other Land		-		613,351		-		613,351		2.15	%
Other Non Owner-Occupied Commercial Real Estate		-		12,765,161		-		12,765,161		44.76	%
Direct Financing Leases		-		1,669,717		-		1,669,717		5.85	%
Residential Real Estate		51,094		1,325,827		333,895		1,710,816		6.00	%
Installment and Other Consumer		4,312		863,574		357,000		1,224,886		4.29	%
	$	55,406	$	26,337,439	$	2,128,869	$	28,521,714		100.00	%

*Nonaccrual loans/leases includes $9,620,674 of troubled debt restructurings, including $81,043 in commercial and industrial loans, $8,768,590 in commercial real estate loans, $64,144 in direct financing leases, $515,827 in residential real estate loans, and $191,070 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.

19

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 nine months ended September 30, 2014 and 2013, respectively, are presented as follows:

	Three Months Ended September 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	6,549,378		$	10,277,692		$	3,319,131		$	1,439,185		$	1,481,638		$	23,067,024
Provisions (credits) charged to expense		851,542			(196,865	)		509,657			(53,963	)		(47,048	)		1,063,323
Loans/leases charged off		(741,127	)		(120,505	)		(741,478	)		(42,022	)		(86,370	)		(1,731,502	)
Recoveries on loans/leases previously charged off		254,265			68,346			19,577			9,870			17,014			369,072
Balance, ending	$	6,914,058		$	10,028,668		$	3,106,887		$	1,353,070		$	1,365,234		$	22,767,917

	Three Months Ended September 30, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	4,790,828		$	12,190,497		$	2,187,605		$	1,165,341		$	822,108		$	21,156,379
Provisions (credits) charged to expense		765,582			88,761			338,984			102,523			71,134			1,366,984
Loans/leases charged off		(214,920	)		(443,721	)		(203,724	)		(13,599	)		(51,673	)		(927,637	)
Recoveries on loans/leases previously charged off		26,034			375,325			644			13,240			51,420			466,663
Balance, ending	$	5,367,524		$	12,210,862		$	2,323,509		$	1,267,505		$	892,989		$	22,062,389

	Nine Months Ended September 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		1,930,050			(460,356	)		1,428,678			42,712			218,280			3,159,364
Loans/leases charged off		(967,207	)		(436,056	)		(885,966	)		(95,464	)		(102,107	)		(2,486,800	)
Recoveries on loans/leases previously charged off		302,441			219,646			46,958			9,973			68,287			647,305
Balance, ending	$	6,914,058		$	10,028,668		$	3,106,887		$	1,353,070		$	1,365,234		$	22,767,917

	Nine Months Ended September 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		1,026,073			1,875,132			1,057,744			307,196			(321,242	)		3,944,903
Loans/leases charged off		(253,820	)		(1,264,446	)		(726,395	)		(126,490	)		(192,160	)		(2,563,311	)
Recoveries on loans/leases previously charged off		63,726			530,674			1,765			16,471			142,957			755,593
Balance, ending	$	5,367,524		$	12,210,862		$	2,323,509		$	1,267,505		$	892,989		$	22,062,389

20

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 September 30, 2014 and December 31, 2013 is presented as follows:

	As of September 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	2,204,926		$	2,473,500		$	165,617		$	129,859		$	506,860		$	5,480,762
Allowance for nonimpaired loans/leases		4,709,132			7,555,168			2,941,270			1,223,211			858,374			17,287,155
	$	6,914,058		$	10,028,668		$	3,106,887		$	1,353,070		$	1,365,234		$	22,767,917
Impaired loans/leases	$	8,258,681		$	14,431,006		$	1,669,717		$	1,659,722		$	1,278,089		$	27,297,215
Nonimpaired loans/leases		471,488,378			683,297,027			160,806,362			153,294,298			70,482,084			1,539,368,149
	$	479,747,059		$	697,728,033		$	162,476,079		$	154,954,020		$	71,760,173		$	1,566,665,364
Allowance as a percentage of impaired loans/leases		26.70	%		17.14	%		9.92	%		7.82	%		39.66	%		20.08	%
Allowance as a percentage nonimpaired loans/leases		1.00	%		1.11	%		1.83	%		0.80	%		1.22	%		1.12	%
		1.44	%		1.44	%		1.91	%		0.87	%		1.90	%		1.45	%

	As of December 31, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	927,453		$	3,174,704		$	192,847		$	246,266		$	467,552		$	5,008,822
Allowance for nonimpaired loans/leases		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
Impaired loans/leases	$	1,761,850		$	12,956,915		$	894,458		$	2,116,747		$	1,350,450		$	19,080,420
Nonimpaired loans/leases		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 impaired loans/leases		52.64	%		24.50	%		21.56	%		11.63	%		34.62	%		26.25	%
Allowance as a percentage nonimpaired loans/leases		1.10	%		1.14	%		1.82	%		0.79	%		0.95	%		1.14	%
		1.31	%		1.59	%		1.95	%		0.95	%		1.55	%		1.47	%

21

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 nine months ended September 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	$	560,005	$	667,983	$	-	$	647,016	$	19,754	$	19,754
Commercial Real Estate
Owner-Occupied Commercial Real Estate		760,586		873,808		-		536,402		-		-
Commercial Construction, Land Development, and Other Land		1,385,356		1,496,556		-		1,615,643		-		-
Other Non Owner-Occupied Commercial Real Estate		4,989,393		5,044,816		-		3,169,784		13,283		13,283
Direct Financing Leases		1,109,844		1,109,884		-		966,959		-		-
Residential Real Estate		1,113,535		1,113,535		-		1,332,539		2,879		2,879
Installment and Other Consumer		455,457		455,457		-		520,020		-		-
	$	10,374,176	$	10,762,039	$	-	$	8,788,363	$	35,916	$	35,916
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	7,698,676	$	8,464,069	$	2,204,926	$	1,702,548	$	-	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		439,701		439,701		143,453		282,878		-		-
Commercial Construction, Land Development, and Other Land		794,703		806,703		457,086		801,643		-		-
Other Non Owner-Occupied Commercial Real Estate		6,061,267		6,760,858		1,872,961		5,971,713		-		-
Direct Financing Leases		559,873		559,873		165,617		425,472		-		-
Residential Real Estate		546,187		546,187		129,859		520,782		2,074		2,074
Installment and Other Consumer		822,632		822,632		506,860		779,968		2,670		2,670
	$	16,923,039	$	18,400,023	$	5,480,762	$	10,485,004	$	4,744	$	4,744
Total Impaired Loans/Leases:
Commercial and Industrial	$	8,258,681	$	9,132,052	$	2,204,926	$	2,349,564	$	19,754	$	19,754
Commercial Real Estate
Owner-Occupied Commercial Real Estate		1,200,287		1,313,509		143,453		819,280		-		-
Commercial Construction, Land Development, and Other Land		2,180,059		2,303,259		457,086		2,417,286		-		-
Other Non Owner-Occupied Commercial Real Estate		11,050,660		11,805,674		1,872,961		9,141,497		13,283		13,283
Direct Financing Leases		1,669,717		1,669,757		165,617		1,392,431		-		-
Residential Real Estate		1,659,722		1,659,722		129,859		1,853,321		4,953		4,953
Installment and Other Consumer		1,278,089		1,278,089		506,860		1,299,988		2,670		-
	$	27,297,215	$	29,162,062	$	5,480,762	$	19,273,367	$	40,660	$	40,660

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

22

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 September 30, 2014 and 2013, respectively, are presented as follows:

	Three Months Ended September 30, 2014						Three Months Ended September 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	$	621,836	$	17,855	$	17,855	$	834,405	$	1,950	$	1,950
Commercial Real Estate						-
Owner-Occupied Commercial Real Estate		751,191		-		-		2,295,969		-		-
Commercial Construction, Land Development, and Other Land		1,397,733		-		-		1,943,718		-		-
Other Non Owner-Occupied Commercial Real Estate		4,051,261		-		-		1,739,053		354		354
Direct Financing Leases		1,152,456		-		-		527,153		-		-
Residential Real Estate		1,186,197		704		704		1,273,943		-		-
Installment and Other Consumer		494,498		-		-		1,012,035		1,689		1,689
	$	9,655,172	$	18,559	$	18,559	$	9,626,276	$	3,993	$	3,993
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	3,454,429	$	-	$	-	$	1,913,841	$	9,340	$	9,340
Commercial Real Estate						-
Owner-Occupied Commercial Real Estate		439,701		-		-		1,181,798		-		-
Commercial Construction, Land Development, and Other Land		796,194		-		-		1,897,759		1,992		1,992
Other Non Owner-Occupied Commercial Real Estate		6,034,473		-		-		8,893,535		26,484		26,484
Direct Financing Leases		578,317		-		-		172,428		-		-
Residential Real Estate		564,278		1,296		1,296		561,752		801		801
Installment and Other Consumer		826,092		890		890		422,808		-		-
	$	12,693,484	$	2,186	$	2,186	$	15,043,921	$	38,617	$	38,617
Total Impaired Loans/Leases:
Commercial and Industrial	$	4,076,265	$	17,855	$	17,855	$	2,748,246	$	11,290	$	11,290
Commercial Real Estate
Owner-Occupied Commercial Real Estate		1,190,892		-		-		3,477,767		-		-
Commercial Construction, Land Development, and Other Land		2,193,927		-		-		3,841,477		1,992		1,992
Other Non Owner-Occupied Commercial Real Estate		10,085,734		-		-		10,632,588		26,838		26,838
Direct Financing Leases		1,730,773		-		-		699,581		-		-
Residential Real Estate		1,750,475		2,000		2,000		1,835,695		801		801
Installment and Other Consumer		1,320,590		890		890		1,434,843		1,689		1,689
	$	22,348,656	$	20,745	$	20,745	$	24,670,197	$	42,610	$	42,610

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

23

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.

24

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 September 30, 2014 and December 31, 2013:

	As of September 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)	$	448,093,142	$	241,429,419	$	66,448,462	$	349,173,522	$	1,105,144,545
Special Mention (Rating 6)		15,306,200		6,598,947		-		2,058,884		23,964,031
Substandard (Rating 7)		16,347,717		3,047,994		3,407,562		25,563,243		48,366,516
Doubtful (Rating 8)		-		-		-		-		-
	$	479,747,059	$	251,076,360	$	69,856,024	$	376,795,649	$	1,177,475,092

	As of September 30, 2014
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total
Performing	$	160,806,362	$	153,243,203	$	70,535,287	$	384,584,852
Nonperforming		1,669,717		1,710,817		1,224,886		4,605,420
	$	162,476,079	$	154,954,020	$	71,760,173	$	389,190,272

	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.

25

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

As of September 30, 2014 and December 31, 2013, troubled debt restructurings totaled $11,749,543 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 nine months ended September 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 September 30, 2014								For the three months ended September 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 - Interest rate adjusted below market
Residential Real Estate		-	$	-	$	-	$	-		1	$	79,661	$	79,661	$	24,408
		-	$	-	$	-	$	-		1	$	79,661	$	79,661	$	24,408
CONCESSION - Extension of Maturity
Owner-Occupied Commercial Real Estate		-	$	-	$	-	$	-		1	$	61,517	$	61,517	$	-
Other Non Owner-Occupied Commercial Real Estate		-		-		-		-		7		6,637,835		6,637,835		1,518,303
		-	$	-	$	-	$	-		8	$	6,699,352	$	6,699,352	$	1,518,303
CONCESSION - Other
Residential Real Estate		1	$	96,439	$	71,760	$	7,125		-	$	-	$	-	$	-
		1	$	96,439	$	71,760	$	7,125		-	$	-	$	-	$	-
TOTAL		1	$	96,439	$	71,760	$	7,125		9	$	6,779,013	$	6,779,013	$	1,542,711

	For the nine months ended September 30, 2014								For the nine months ended September 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		-		-		-		-		2		240,288		240,288		24,408
		-	$	-	$	-	$	-		3	$	577,788	$	577,788	$	24,408
CONCESSION - Extension of maturity
Commercial and Industrial		-	$	-	$	-	$	-		3	$	809,494	$	809,494	$	188,700
Owner-Occupied Commercial Real Estate		-		-		-		-		1		61,517		61,517		-
Other Non Owner-Occupied Commercial Real Estate		-		-		-		-		7		6,637,835		6,637,835		1,518,303
Direct Financing Leases		1		70,144		70,144		24,246		-		-		-		-
		1	$	70,144	$	70,144	$	24,246		11	$	7,508,846	$	7,508,846	$	1,707,003
CONCESSION - Other
Commercial and Industrial		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
Residential Real Estate		1	$	96,439	$	71,760	$	7,125
		2	$	524,288	$	499,609	$	120,574		-	$	-	$	-	$	-
TOTAL		7	$	1,573,029	$	1,548,350	$	384,603		17	$	8,596,173	$	8,596,173	$	1,731,411

26

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Of the troubled debt restructurings reported above, three with a post-modification recorded investment totaling $75,767 were on nonaccrual as of September 30, 2014, and ten with post-modification recorded investments totaling $6,087,296 were on nonaccrual as of September 30, 2013.

For the three and nine months ended September 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.

27

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				Nine months ended
	September 30,				September 30,
	2014		2013		2014		2013
Net income	$	4,062,665	$	3,811,944	$	11,959,716	$	11,122,319
Less: Preferred stock dividends		-		810,837		1,081,877		2,432,512
Net income attributable to QCR Holdings, Inc. common stockholders	$	4,062,665	$	3,001,107	$	10,877,839	$	8,689,807
Earnings per common share attributable to QCR Holdings, Inc. common stockholders
Basic	$	0.51	$	0.52	$	1.37	$	1.62
Diluted	$	0.50	$	0.51	$	1.35	$	1.59
Weighted average common shares outstanding*		7,931,944		5,806,019		7,919,201		5,375,557
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan		122,041		109,260		121,217		106,741
Weighted average common and common equivalent shares outstanding		8,053,985		5,915,279		8,040,418		5,482,298

*On December 23, 2013, the Company converted $25.0 million of its outstanding shares of Series E Preferred Stock to common stock, which resulted in the issuance of 2,057,502 shares of common stock.

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.

28

Part I

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 nine months ended September 30, 2014 and 2013.

	Commercial Banking
			Cedar
	Quad City		Rapids		Rockford		Wealth					Intercompany			Consolidated
	Bank & Trust		Bank & Trust		Bank & Trust		Management		All Other			Eliminations			Total
Three Months Ended September 30, 2014
Total revenue	$	12,467,712	$	8,801,737	$	3,595,245	$	2,082,609	$	5,526,296		$	(5,609,315	)	$	26,864,284
Net interest income	$	9,234,089	$	6,179,763	$	2,584,613	$	-	$	(523,134	)	$	-		$	17,475,331
Net income	$	2,602,238	$	1,861,236	$	669,814	$	358,997	$	4,062,665		$	(5,492,285	)	$	4,062,665
Total assets	$	1,274,033,270	$	822,348,680	$	346,791,265	$	-	$	212,236,225		$	(204,813,887	)	$	2,450,595,553
Provision for loan/lease losses	$	609,657	$	331,666	$	122,000	$	-	$	-		$	-		$	1,063,323
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,720,799	$	-	$	-	$	-		$	-		$	1,720,799
Three Months Ended September 30, 2013
Total revenue	$	12,610,738	$	10,006,670	$	3,457,684	$	1,946,795	$	5,398,152		$	(5,489,143	)	$	27,930,896
Net interest income	$	8,494,707	$	6,883,007	$	2,421,255	$	-	$	(488,633	)	$	-		$	17,310,336
Net income	$	2,541,293	$	1,941,807	$	445,521	$	458,813	$	3,811,944		$	(5,387,434	)	$	3,811,944
Total assets	$	1,248,417,915	$	927,667,522	$	333,804,180	$	-	$	214,875,126		$	(239,050,305	)	$	2,485,714,438
Provision for loan/lease losses	$	674,984	$	580,000	$	112,000	$	-	$	-		$	-		$	1,366,984
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	3,311,073	$	-	$	-	$	-		$	-		$	3,311,073
Nine Months Ended September 30, 2014
Total revenue	$	36,368,665	$	25,816,115	$	10,779,962	$	6,387,215	$	16,016,503		$	(16,272,535	)	$	79,095,925
Net interest income	$	27,235,902	$	17,820,878	$	7,637,029	$	-	$	(1,403,894	)	$	-		$	51,289,915
Net income	$	7,397,943	$	5,577,993	$	1,755,117	$	1,205,204	$	11,959,716		$	(15,936,257	)	$	11,959,716
Total assets	$	1,274,033,270	$	822,348,680	$	346,791,265	$	-	$	212,236,225		$	(204,813,887	)	$	2,450,595,553
Provision for loan/lease losses	$	1,779,698	$	881,666	$	498,000	$	-	$	-		$	-		$	3,159,364
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,720,799	$	-	$	-	$	-		$	-		$	1,720,799
Nine Months Ended September 30, 2013
Total revenue	$	36,476,985	$	24,911,543	$	10,291,554	$	5,488,081	$	16,570,031		$	(14,977,630	)	$	78,760,564
Net interest income	$	25,371,337	$	15,905,288	$	7,160,723	$	-	$	(1,227,643	)	$	-		$	47,209,705
Net income	$	6,989,589	$	5,430,289	$	1,261,243	$	1,000,558	$	11,122,319		$	(14,681,679	)	$	11,122,319
Total assets	$	1,248,417,915	$	927,667,522	$	333,804,180	$	-	$	214,875,126		$	(239,050,305	)	$	2,485,714,438
Provision for loan/lease losses	$	2,052,889	$	980,014	$	912,000	$	-	$	-		$	-		$	3,944,903
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	3,311,073	$	-	$	-	$	-		$	-		$	3,311,073

29

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 September 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)
September 30, 2014:
Securities available for sale:
U.S. govt. sponsored agency securities	$	306,004,605	$	-	$	306,004,605	$	-
Residential mortgage-backed and related securities		127,779,749		-		127,779,749		-
Municipal securities		31,260,146		-		31,260,146		-
Other securities		1,900,067		317,021		1,583,046		-
Derivative instruments		1,848,119		-		1,848,119		-
	$	468,792,686	$	317,021	$	468,475,665	$	-
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 nine months ended September 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).

30

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 September 30, 2014 and December 31, 2013:

			Fair Value Measurements at Reporting Date Using
	Fair Value		Level 1		Level 2		Level 3
September 30, 2014:
Impaired loans/leases	$	13,616,631	$	-	$	-	$	13,616,631
Other real estate owned		11,534,235		-		-		11,534,235
	$	25,150,866	$	-	$	-	$	25,150,866
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
September 30, 2014:
Impaired loans/leases	$	13,616,631	Appraisal of collateral	Appraisal adjustments	-10.00% to -50.00%
Other real estate owned		11,534,235	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%

31

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 nine months ended September 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 September 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	$	42,326,177	$	42,326,177	$	41,950,790	$	41,950,790
Federal funds sold	Level 2		29,760,000		29,760,000		39,435,000		39,435,000
Interest-bearing deposits at financial institutions	Level 2		34,631,773		34,631,773		33,044,917		33,044,917
Investment securities:
Held to maturity	Level 3		185,840,139		185,936,051		145,451,895		138,640,105
Available for sale	See Previous Table		466,944,567		466,944,567		551,758,458		551,758,458
Loans/leases receivable, net	Level 3		12,607,992		13,616,631		8,342,182		9,009,557
Loans/leases receivable, net	Level 2		1,537,493,236		1,544,453,008		1,430,489,328		1,441,952,443
Derivative instruments	Level 2		1,848,119		1,848,119		-		-
Deposits:
Nonmaturity deposits	Level 2		1,298,921,913		1,298,921,913		1,256,209,352		1,256,209,352
Time deposits	Level 2		414,945,479		416,050,000		390,781,891		391,923,000
Short-term borrowings	Level 2		162,186,698		162,186,698		149,292,967		149,292,967
Federal Home Loan Bank advances	Level 2		196,500,000		202,507,000		231,350,000		241,623,000
Other borrowings	Level 2		151,455,209		160,531,000		142,448,362		152,761,000
Junior subordinated debentures	Level 2		40,389,809		28,457,573		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.

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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 advance 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 September 30, 2014. An initial premium of $2.1 million was paid for the two caps. The fair value of these instruments will fluctuate with market value changes, as well as amortization of the initial premium to interest expense.

33

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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	$	751,668
June 5, 2014	June 5, 2021	Other Assets		15,000,000	Cash Flow Hedging		1,096,451
			$	30,000,000		$	1,848,119

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 Months Ended September 30, 2014			Nine Months Ended September 30, 2014
Unrealized loss at beginning of period	$	(251,149	)	$	-
Amount reclassified from accumulated other comprehensive income to noninterest income		(10,968	)		(10,968	)
Amount of gain (loss) recognized in other comprehensive income		109,692			(141,457	)
Unrealized loss at end of period	$	(152,425	)	$	(152,425	)

Changes in the fair value related to the ineffective portion of cash flow hedges, are reported in noninterest income during the period of the change. As shown in the table above, $10,968 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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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 $4.1 million for the quarter ended September 30, 2014 and reported diluted earnings per common share of $0.50. By comparison, for the third quarter of 2013, the Company recognized net income of $3.8 million, which included $389 thousand of acquisition costs related to the acquisition of CNB. After preferred stock dividends of $811 thousand, the Company reported net income attributable to common stockholders of $3.0 million, or diluted earnings per common share of $0.51 for the third quarter of 2013.

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

	For the three months ended				For the nine months ended
	September 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013
Net income	$	4,062,665	$	3,811,944	$	11,959,716	$	11,122,319
Less: Preferred stock dividends		-		810,837		1,081,877		2,432,512
Net income attributable to QCR Holdings, Inc. common stockholders	$	4,062,665	$	3,001,107	$	10,877,839	$	8,689,807
Diluted earnings per common share	$	0.50	$	0.51	$	1.35	$	1.59
Weighted average common and common equivalent outstanding*		8,053,985		5,915,279		8,040,418		5,482,298

*On December 23, 2013, the Company converted $25.0 million of its outstanding shares of Series E Preferred Stock to common stock, which resulted in the issuance of 2,057,502 shares of common stock.

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

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

	For the three months ended									For the nine months ended
	September 30, 2014			June 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
Net interest income	$	17,475,331		$	16,965,343		$	17,310,336		$	51,289,915		$	47,209,705
Provision for loan/lease losses		(1,063,323	)		(1,001,879	)		(1,366,984	)		(3,159,364	)		(3,944,903	)
Noninterest income		5,067,642			5,344,213			5,934,653			15,158,696			18,087,438
Noninterest expense		(16,388,109	)		(16,106,529	)		(17,027,268	)		(48,635,058	)		(46,220,117	)
Federal and state income tax		(1,028,876	)		(1,193,312	)		(1,038,793	)		(2,694,473	)		(4,009,804	)
Net income	$	4,062,665		$	4,007,836		$	3,811,944		$	11,959,716		$	11,122,319

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

● Provision for loan/lease losses increased 6% compared to the second quarter of 2014 and decreased 22% from the third quarter of 2013.

● Noninterest income decreased 5% compared to the second quarter of 2014. A decrease in gains on the sale of government guaranteed portions of loans accounted for a large portion of this change.

● Noninterest expense increased 2% compared to the second quarter of 2014.

● Federal and state income tax expense decreased 14% compared to the second quarter of 2014.

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Item 2

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 $505 thousand, or 3%, to $18.5 million for the quarter ended September 30, 2014, from $18.0 million for the same period of 2013. Net interest income improved primarily as the result of:

● Organic loan/lease growth,

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

● Continued reductions in the cost of deposits.

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

● The average yield on interest-earning assets increased 2 basis points.

● The average cost of interest-bearing liabilities decreased 7 basis points.

● The net interest spread increased 9 basis points from 2.81% to 2.90%.

● The net interest margin improved 8 basis points from 3.07% to 3.15%.

Net interest income, on a tax equivalent basis, increased $5.0 million, or 10%, to $54.1 million for the first three quarters of 2014, from $49.1 million for the first three quarters 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 three quarters of 2013 to the first three quarters of 2014 is as follows (on a tax equivalent basis):

● The average yield on interest-earning assets was flat at 3.86%.

● The average cost of interest-bearing liabilities decreased 12 basis points.

● The net interest spread increased 12 basis points from 2.74% to 2.86%.

● The net interest margin improved 10 basis points from 3.03% to 3.13%.

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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Item 2

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 September 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	$	23,894		$	8		0.13	%	$	24,208		$	9		0.15	%
Interest-bearing deposits at financial institutions		45,614			66		0.57	%		40,416			73		0.72	%
Investment securities (1)		673,416			4,644		2.74	%		717,195			4,043		2.24	%
Restricted investment securities		16,210			128		3.13	%		16,279			144		3.51	%
Gross loans/leases receivable (1) (2) (3)		1,572,638			18,003		4.54	%		1,529,771			18,440		4.78	%
Total interest earning assets	$	2,331,772		$	22,849		3.89	%	$	2,327,869		$	22,709		3.87	%
Noninterest-earning assets:
Cash and due from banks	$	44,815							$	44,349
Premises and equipment		36,191								39,067
Less allowance for estimated losses on loans/leases		(23,355	)							(21,401	)
Other		77,768								66,283
Total assets	$	2,467,191							$	2,456,167
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing deposits	$	751,808		$	466		0.25	%	$	759,851		$	625		0.33	%
Time deposits		415,693			702		0.67	%		452,751			769		0.67	%
Short-term borrowings		164,161			65		0.16	%		144,606			57		0.16	%
Federal Home Loan Bank advances		216,311			1,497		2.75	%		205,613			1,705		3.29	%
Junior subordinated debentures		40,373			311		3.06	%		40,222			329		3.25	%
Other borrowings		151,508			1,280		3.35	%		142,697			1,201		3.34	%
Total interest-bearing liabilities	$	1,739,854		$	4,321		0.99	%	$	1,745,740		$	4,686		1.06	%
Noninterest-bearing demand deposits	$	559,614							$	525,708
Other noninterest-bearing liabilities		31,320								38,681
Total liabilities	$	2,330,788							$	2,310,129
Stockholders' equity		136,403								146,038
Total liabilities and stockholders' equity	$	2,467,191							$	2,456,167
Net interest income				$	18,528							$	18,023
Net interest spread							2.90	%							2.81	%
Net interest margin							3.15	%							3.07	%
Ratio of average interest-earning assets to average interest-bearing liabilities		134.02	%							133.35	%

(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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Item 2

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 September 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	)	$	(1	)	$	-
Interest-bearing deposits at financial institutions		(7	)		(49	)		42
Investment securities (2)		601			2,010			(1,409	)
Restricted investment securities		(16	)		(15	)		(1	)
Gross loans/leases receivable (3) (4)		(437	)		(2,914	)		2,477
Total change in interest income	$	140		$	(969	)	$	1,109
INTEREST EXPENSE
Interest-bearing deposits	$	(159	)	$	(153	)	$	(6	)
Time deposits		(67	)		(5	)		(62	)
Short-term borrowings		8			0			8
Federal Home Loan Bank advances		(208	)		(694	)		486
Junior subordinated debentures		(18	)		(26	)		8
Other borrowings		79			5			74
Total change in interest expense	$	(365	)	$	(873	)	$	508
Total change in net interest income	$	505		$	(96	)	$	601

(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 nine months ended September 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	$	15,737		$	15		0.13	%	$	11,656		$	13		0.15	%
Interest-bearing deposits at financial institutions		59,145			228		0.52	%		37,803			194		0.69	%
Investment securities (1)		699,405			14,063		2.69	%		693,547			11,742		2.26	%
Restricted investment securities		16,688			397		3.18	%		16,075			399		3.32	%
Gross loans/leases receivable (1) (2) (3)		1,518,867			52,063		4.58	%		1,409,066			50,221		4.77	%
Total interest earning assets	$	2,309,842		$	66,766		3.86	%	$	2,168,147		$	62,569		3.86	%
Noninterest-earning assets:
Cash and due from banks	$	44,350							$	42,016
Premises and equipment		36,482								35,322
Less allowance for estimated losses on loans/leases		(22,708	)							(21,272	)
Other		74,372								72,292
Total assets	$	2,442,338							$	2,296,505
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing deposits	$	729,516		$	1,366		0.25	%	$	651,895		$	1,430		0.29	%
Time deposits		392,493			2,006		0.68	%		400,844			2,257		0.75	%
Short-term borrowings		158,821			177		0.15	%		171,838			225		0.18	%
Federal Home Loan Bank advances		226,055			4,549		2.69	%		208,319			5,164		3.31	%
Junior subordinated debentures		40,339			923		3.06	%		39,235			832		2.84	%
Other borrowings		145,977			3,626		3.32	%		140,333			3,555		3.39	%
Total interest-bearing liabilities	$	1,693,201		$	12,647		1.00	%	$	1,612,464		$	13,463		1.12	%
Noninterest-bearing demand deposits	$	573,943							$	505,017
Other noninterest-bearing liabilities		32,195								34,393
Total liabilities	$	2,299,339							$	2,151,874
Stockholders' equity		142,999								144,631
Total liabilities and stockholders' equity	$	2,442,338							$	2,296,505
Net interest income				$	54,119							$	49,106
Net interest spread							2.86	%							2.74	%
Net interest margin							3.13	%							3.03	%
Ratio of average interest-earning assets to average interest-bearing liabilities		136.42	%							134.46	%

(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.

40

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Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

Analysis of Changes of Interest Income/Interest Expense

For the nine months ended September 30, 2014

	Inc./(Dec.)			Components
	from			of Change (1)
	Prior Period			Rate			Volume
	2014 vs. 2013
	(dollars in thousands)
INTEREST INCOME
Federal funds sold	$	2		$	(3	)	$	5
Interest-bearing deposits at financial institutions		34			(79	)		113
Investment securities (2)		2,321			2,221			100
Restricted investment securities		(2	)		(22	)		20
Gross loans/leases receivable (3) (4)		1,842			(2,839	)		4,681
Total change in interest income	$	4,197		$	(722	)	$	4,919
INTEREST EXPENSE
Interest-bearing deposits	$	(64	)	$	(287	)	$	223
Time deposits		(251	)		(205	)		(46	)
Short-term borrowings		(48	)		(32	)		(16	)
Federal Home Loan Bank advances		(615	)		(1,233	)		618
Junior subordinated debentures		91			67			24
Other borrowings		71			(102	)		173
Total change in interest expense	$	(816	)	$	(1,792	)	$	976
Total change in net interest income	$	5,013		$	1,070		$	3,943

(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 September 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 decreased $200 thousand, or 1%, comparing the third quarter of 2014 to the same period of 2013. For the first three quarters of 2014, interest income grew $3.3 million, or 5%, compared to the first three quarters 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 $145.8 million, comparing September 30, 2014 to September 30, 2013. The securities portfolio yield continued to increase (from 2.24% for the third quarter of 2013 to 2.74% for the third quarter of 2014 and from 2.26% for the first three quarters of 2013 to 2.69% for the first three quarters of 2014) as the Company continued to focus on diversifying its securities portfolio, including increasing its portfolio of agency-sponsored mortgage-backed securities as well as tax-exempt 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 third quarter of 2014 decreased $365 thousand, or 8%, from the third quarter of 2013. For the first three quarters of 2014, interest expense decreased $816 thousand, or 6%, compared to the first three quarters of 2013. Considering the growth of interest-bearing liabilities (average balances grew $81 million, or 5%, from September 30, 2013 to September 30, 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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Part I

Item 2

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 $1.1 million for the third quarter of 2014, which was up $61 thousand from the prior quarter, and down $304 thousand from the third quarter of 2013. The provision totaled $3.2 million for the first nine months of 2014, compared to $3.9 million for the first nine months of 2013. The Company had net charge-offs of $1.4 million for the third quarter of 2014 which, when coupled with the provision of $1.1 million, decreased the Company’s allowance to $22.8 million at September 30, 2014. As of September 30, 2014, the Company’s allowance to total loans/leases was 1.45%, which was down from 1.49% at June 30, 2014, and up from 1.43% at September 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 nine months ended September 30, 2014 and 2013.

	Three Months Ended
	September 30, 2014		September 30, 2013			$ Change			% Change
Trust department fees	$	1,355,700	$	1,312,349		$	43,351			3.3	%
Investment advisory and management fees		726,908		634,446			92,462			14.6
Deposit service fees		1,168,961		1,228,685			(59,724	)		(4.9	)
Gains on sales of residential real estate loans		120,627		184,596			(63,969	)		(34.7	)
Gains on sales of government guaranteed portions of loans		158,736		338,338			(179,602	)		(53.1	)
Earnings on bank-owned life insurance		434,065		466,028			(31,963	)		(6.9	)
Subtotal	$	3,964,997	$	4,164,442		$	(199,445	)		(4.8	)
Gains (losses) on other real estate owned, net		30,596		(36,745	)		67,341			(183.3	)
Securities gains, net		19,429		416,936			(397,507	)		(95.3	)
Other		1,052,620		1,390,020			(337,400	)		(24.3	)
Total noninterest income	$	5,067,642	$	5,934,653		$	(867,011	)		(14.6	)%

	Nine Months Ended
	September 30, 2014			September 30, 2013			$ Change			% Change
Trust department fees	$	4,300,456		$	3,549,200		$	751,257			21.2	%
Investment advisory and management fees		2,086,758			1,938,881			147,877			7.6
Deposit service fees		3,306,769			3,190,731			116,038			3.6
Gains on sales of residential real estate loans		317,085			722,368			(405,283	)		(56.1	)
Gains on sales of government guaranteed portions of loans		860,923			1,949,300			(1,088,377	)		(55.8	)
Earnings on bank-owned life insurance		1,276,901			1,328,598			(51,698	)		(3.9	)
Subtotal	$	12,148,892		$	12,679,078		$	(530,186	)		(4.2	)
Losses on other real estate owned, net		(114,109	)		(566,714	)		452,605			(79.9	)
Securities gains, net		40,625			433,396			(392,771	)		(90.6	)
Bargain purchase gain on Community National acquisition		-			1,841,385			(1,841,385	)		(100.0	)
Other		3,083,288			3,700,293			(617,005	)		(16.7	)
Total noninterest income	$	15,158,696		$	18,087,438		$	(2,928,742	)		(16.2	)%

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Part I

Item 2

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 3% from the third quarter of 2013 to the third quarter of 2014, and grew 21% from the first nine months of 2013 to the first nine months of 2014. Part of the increase stems from the addition of CNB’s trust department, which recognized $225 thousand of trust department fees for the third quarter of 2014 and $747 thousand of trust department fees for the first nine months 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 trust department 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 15% comparing the third quarter of 2014 to the same period of 2013, and grew 8% comparing the first nine months of 2014 to the first nine months 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 investment advisory and management services 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 and now served by CRBT through Community Bank & Trust.

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 contracted 5% comparing the third quarter of 2014 to the same period in 2013, due to a decrease in non-sufficient funds, overdrafts, and related fees, while expanding 4% comparing the first nine months of 2014 to the same period in 2013. Most of the year-over-year 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 35% comparing the third quarter of 2014 to the third quarter of 2013, and fell 56% when comparing the first nine months 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.

The Company’s gains on the sale of government guaranteed portions of loans for the third quarter of 2014 totaled $159 thousand. Gains totaled $861 thousand for the first nine months of 2014, down 56% from the same period of 2013. 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 for small business loans are active.

45

Part I

Item 2

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 nine months ended September 30, 2014 and 2013.

	Three Months Ended
	September 30, 2014		September 30, 2013		$ Change			% Change
Debit card fees	$	251,600	$	265,000	$	(13,400	)		(5.1	)%
Correspondent banking fees		295,149		214,310		80,839			37.7
Participation service fees on commercial loan participations		218,268		213,747		4,521			2.1
Income earned on other real estate owned		96,692		11,692		85,000			727.0
Credit card issuing fees, net of processing costs		75,691		57,538		18,153			31.5
Gain on the disposal of leased assets		88,589		37,644		50,945			135.3
Fees on interest rate swaps on commercial loans		-		44,240		(44,240	)		(100.0	)
Lawsuit Award		-		444,732		(444,732	)		(100.0	)
Miscellaneous		26,631		101,117		(74,486	)		(73.7	)
Other noninterest income	$	1,052,620	$	1,390,020	$	(337,400	)		(24.3	)%

	Nine Months Ended
	September 30, 2014		September 30, 2013		$ Change			% Change
Debit card fees	$	763,005	$	752,100	$	10,905			1.4	%
Correspondent banking fees		745,794		535,914		209,880			39.2
Participation service fees on commercial loan participations		632,469		563,217		69,252			12.3
Income earned on other real estate owned		327,735		16,701		311,034			1,862.4
Credit card issuing fees, net of processing costs		258,074		192,509		65,565			34.1
Gain on the disposal of leased assets		107,812		79,900		27,912			34.9
Fees on interest rate swaps on commercial loans		62,000		50,960		11,040			21.7
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	)
Lawsuit Award		-		444,732		(444,732	)		(100.0	)
Miscellaneous		186,399		213,587		(27,188	)		(12.7	)
Other noninterest income	$	3,083,288	$	3,700,293	$	(617,005	)		(16.7	)%

Debit card fees are the interchange fees paid on certain debit card customer transactions. Debit card fees decreased 5% comparing the third quarter of 2014 to the third quarter of 2013, and increased 1% comparing the first nine months of 2014 to the first nine months 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.

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Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

Correspondent banking fees increased 38% comparing the third quarter of 2014 to the third quarter of 2013, and increased 39% comparing the first nine months of 2014 to the first nine months 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.

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 2% comparing the third quarter of 2014 to the third quarter of 2013, and grew 12% comparing the first nine months of 2014 to the first nine months of 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 (mostly loan/lease expense and professional fees) 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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Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

NONINTEREST EXPENSE

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

	Three Months Ended
	September 30, 2014		September 30, 2013		$ Change			% Change
Salaries and employee benefits	$	10,358,783	$	9,802,712	$	556,071			5.7	%
Occupancy and equipment expense		1,805,949		1,914,996		(109,047	)		(5.7	)
Professional and data processing fees		1,530,139		1,902,799		(372,660	)		(19.6	)
FDIC and other insurance		711,792		712,954		(1,162	)		(0.2	)
Loan/lease expense		184,908		396,477		(211,569	)		(53.4	)
Advertising and marketing		555,076		406,085		148,991			36.7
Postage and telephone		146,759		276,580		(129,821	)		(46.9	)
Stationery and supplies		138,377		143,226		(4,849	)		(3.4	)
Bank service charges		337,067		306,539		30,528			10.0
Subtotal	$	15,768,850	$	15,862,368	$	(93,518	)		(0.6	)
Acquisition and data conversion costs		-		388,663		(388,663	)		(100.0	)
Other		619,259		776,237		(156,978	)		(20.2	)
Total noninterest expense	$	16,388,109	$	17,027,268	$	(639,159	)		(3.8	)%

	Nine Months Ended
	September 30, 2014		September 30, 2013		$ Change			% Change
Salaries and employee benefits	$	30,298,892	$	27,731,628	$	2,567,264			9.3	%
Occupancy and equipment expense		5,539,208		4,930,707		608,501			12.3
Professional and data processing fees		4,518,460		4,481,613		36,847			0.8
FDIC and other insurance		2,121,907		1,896,255		225,652			11.9
Loan/lease expense		908,036		893,436		14,600			1.6
Advertising and marketing		1,394,211		1,082,694		311,517			28.8
Postage and telephone		695,555		752,882		(57,327	)		(7.6	)
Stationery and supplies		435,763		404,614		31,149			7.7
Bank service charges		959,496		866,379		93,117			10.7
Subtotal	$	46,871,528	$	43,040,208	$	3,831,320			8.9
Acquisition and data conversion costs		-		1,177,567		(1,177,567	)		(100.0	)
Other		1,763,530		2,002,342		(238,812	)		(11.9	)
Total noninterest expense	$	48,635,058	$	46,220,117	$	2,414,941			5.2	%

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 successfully 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 was the largest component of noninterest expense, increased from the third quarter of 2013 to the third quarter of 2014 by 6%. 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.

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

● Higher accrued incentive compensation based on loan/lease and deposit growth for the first nine months of 2014.

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Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

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. The third quarter of 2013 also included a one-time item related to the termination of a lease agreement totaling approximately $183 thousand.

Professional and data processing fees stayed relatively flat from the prior year, however they decreased significantly when comparing the third quarter of 2014 to the same period of 2013 due to reduced legal expenses. Generally, professional and data processing fees can fluctuate depending on certain one-time project costs. Management will continue to focus on minimizing such one-time costs and driving 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 Company’s three legacy charters.

Loan/lease expense decreased 53% comparing the third quarter of 2014 to the same quarter of 2013, and increased 2% comparing the first nine months 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 due to 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 expense in this category.

With the acquisition of CNB on May 13, 2013, the Company incurred acquisition costs totaling $389 thousand for the third quarter of 2013 and $1.2 million for the first nine months 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.

49

Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

INCOME TAXES

The provision for income taxes totaled $1.0 million, or an effective tax rate of 20%, for the third quarter of 2014 compared to $1.0 million, or an effective tax rate of 21%, for the same quarter of 2013. For the first nine months of 2014, the provision for income taxes totaled $2.7 million, or an effective tax rate of 18%, compared to $4.0 million, or an effective tax rate of 26%, 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 30% from September 30, 2013 to September 30, 2014. The growth in nontaxable income outpaced the growth in taxable income which helped reduce the effective tax rate. Additionally, the Company recognized a one-time tax benefit in the first quarter of 2014 of $359 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
	September 30, 2014					June 30, 2014					December 31, 2013					September 30, 2013
	(dollars in thousands)
	Amount		%			Amount		%			Amount		%			Amount		%
Cash, federal funds sold, and interest-bearing deposits	$	106,718		4	%	$	113,569		5	%	$	114,431		5	%	$	122,779		5	%
Securities		652,785		27	%		682,122		28	%		697,210		29	%		703,699		28	%
Net loans/leases		1,550,101		63	%		1,526,301		62	%		1,438,832		60	%		1,517,321		61	%
Other assets		140,992		6	%		142,847		5	%		144,480		6	%		141,915		6	%
Total assets	$	2,450,596		100	%	$	2,464,839		100	%	$	2,394,953		100	%	$	2,485,714		100	%
Total deposits	$	1,713,867		70	%	$	1,677,368		69	%	$	1,646,991		68	%	$	1,741,832		70	%
Total borrowings		550,532		22	%		619,031		25	%		563,381		24	%		557,513		22	%
Other liabilities		48,017		2	%		33,797		1	%		37,004		2	%		38,416		2	%
Total stockholders' equity		138,180		6	%		134,643		5	%		147,577		6	%		147,953		6	%
Total liabilities and stockholders' equity	$	2,450,596		100	%	$	2,464,839		100	%	$	2,394,953		100	%	$	2,485,714		100	%

During the third quarter of 2014, the Company’s total assets decreased $14.2 million, or 1%, to a total of $2.45 billion. Net loans/leases grew $23.8 million, or 2%, while securities decreased $29.3 million, or 4%. A majority of the loan growth was funded through the sale of securities.

Other liabilities increased $14.2 million, or 42%, comparing the third quarter of 2014 to the second quarter of 2014. Most of this increase was attributable to an accrual of $9.8 million recorded in September 2014 representing the amount due to broker for a bond purchase that had a trade date before September 30, 2014 but a settlement date in October of 2014. 

50

Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

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
	September 30, 2014						June 30, 2014						December 31, 2013						September 30, 2013
	Amount			%			Amount			%			Amount			%			Amount			%
	(dollars in thousands)
U.S. govt. sponsored agency securities	$	306,005			47	%	$	325,620			48	%	$	356,473			51	%	$	367,525			52	%
Municipal securities		216,050			33	%		199,595			29	%		180,361			26	%		166,771			24	%
Residential mortgage-backed and related securities		127,780			20	%		153,895			23	%		157,429			23	%		166,545			24	%
Other securities		2,950			0	%		3,012			0	%		2,947			0	%		2,858			0	%
	$	652,785			100	%	$	682,122			100	%	$	697,210			100	%	$	703,699			100	%
As a % of Total Assets		26.64	%					27.83	%					29.11	%					28.31	%
Net Unrealized Losses as a % of Amortized Cost		-1.12	%					-1.03	%					-4.02	%					-3.10	%
Duration (in years)		4.6						4.4						4.7						4.5

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 1% during the third quarter of 2014, and 8% over the first nine months 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 that of 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
	September 30, 2014						June 30, 2014						December 31, 2013						September 30, 2013
	Amount			%			Amount			%			Amount			%			Amount			%
	(dollars in thousands)
Commercial and industrial loans	$	479,747			31	%	$	480,494			31	%	$	431,688			30	%	$	471,257			31	%
Commercial real estate loans		697,728			45	%		683,376			44	%		671,753			46	%		714,701			46	%
Direct financing leases		162,476			10	%		155,004			10	%		128,902			9	%		121,268			8	%
Residential real estate loans		154,954			10	%		153,200			10	%		147,356			10	%		150,825			10	%
Installment and other consumer loans		71,760			5	%		71,443			5	%		76,034			5	%		77,226			5	%
Total loans/leases	$	1,566,665			100	%	$	1,543,517			100	%	$	1,455,733			100	%	$	1,535,277			100	%
Plus deferred loan/lease origination costs, net of fees		6,204						5,851						4,547						4,106
Less allowance for estimated losses on loans/leases		(22,768	)					(23,067	)					(21,448	)					(22,062	)
Net loans/leases	$	1,550,101					$	1,526,301					$	1,438,832					$	1,517,321

Because commercial real estate loans have historically been the Company’s largest portfolio segment, management places a strong emphasis on monitoring the composition of the Company’s commercial real estate loan portfolio. For example, management tracks the level of owner-occupied commercial real estate loans relative to non owner-occupied loans. Owner-occupied loans are generally considered to have less risk. As of September 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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FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

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

	As of September 30,					As of June 30,					As of December 31,					As of September 30,
	2014					2014					2013					2013
	Amount		%			Amount		%			Amount		%			Amount		%
	(dollars in thousands)
Lessors of Nonresidential Buildings	$	239,600		34	%	$	235,187		34	%	$	229,284		34	%	$	230,692		33	%
Lessors of Residential Buildings		68,409		10	%		65,237		10	%		64,659		10	%		80,507		11	%
Land Subdivision		24,518		4	%		28,234		4	%		29,117		4	%		29,940		4	%
Nursing Care Facilities		19,853		3	%		22,626		3	%		19,212		3	%		16,784		2	%
Hotels		16,990		2	%		20,207		3	%		20,975		3	%		22,808		3	%
Lessors of Other Real Estate Property		16,675		2	%		16,642		3	%		15,509		2	%		15,221		2	%
New Car Dealers		16,473		2	%		16,010		2	%		16,597		2	%		22,730		3	%
Other *		295,210		43	%		279,233		41	%		276,400		42	%		296,019		42	%
Total Commercial Real Estate Loans	$	697,728		100	%	$	683,376		100	%	$	671,753		100	%	$	714,701		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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ALLOWANCE FOR ESTIMATED LOSSES ON LOANS/LEASES. Changes in the allowance for the three and nine months ended September 30, 2014 and 2013 are presented as follows:

	Three Months Ended						Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
	(dollars in thousands)						(dollars in thousands)
Balance, beginning	$	23,067		$	21,156		$	21,448		$	19,925
Provisions charged to expense		1,063			1,367			3,160			3,945
Loans/leases charged off		(1,731	)		(928	)		(2,487	)		(2,563	)
Recoveries on loans/leases previously charged off		369			467			647			755
Balance, ending	$	22,768		$	22,062		$	22,768		$	22,062

The allowance was $22.8 million at September 30, 2014 compared to $21.4 million at December 31, 2013 and $22.1 million at September 30, 2013. Net charge-offs of loans/leases for the first nine months of 2014 was 12 basis points of average loans/leases which compares favorably to 13 basis points of average loans/leases for the first nine months 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 *	September 30, 2014		June 30, 2014		December 31, 2013		September 30, 2013
	(dollars in thousands)
Special Mention (Rating 6)	$	23,964	$	34,306	$	24,572	$	29,646
Substandard (Rating 7)		48,367		53,409		43,508		50,206
Doubtful (Rating 8)		-		-		-		202
	$	72,331	$	87,715	$	68,080	$	80,054
Criticized Loans **	$	72,331	$	87,715	$	68,080	$	80,054
Classified Loans ***	$	48,367	$	53,409	$	43,508	$	50,408

* 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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FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

The Company experienced a modest increase in criticized and classified loans during the first nine months of 2014, as compared to December 31, 2013, which also translated to an increase in nonperforming loans. Nonperforming loans/leases increased $8.0 million 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 nine months of 2014 (24 basis points of total loans/leases at September 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
	September 30, 2014			June 30, 2014			December 31, 2013			September 30, 2013
Allowance / Gross Loans/Leases		1.45	%		1.49	%		1.47	%		1.43	%
Allowance / Nonperforming Loans/Leases *		79.83	%		115.68	%		104.70	%		88.51	%

*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.

Although management believes that the allowance at September 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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NONPERFORMING ASSETS. The table below presents the amounts of nonperforming assets.

	As of September 30,			As of June 30,			As of December 31,			As of September 30,			As of December 31,
	2014			2014			2013			2013			2012
	(dollars in thousands)
Nonaccrual loans/leases (1) (2)	$	26,337		$	17,652		$	17,878		$	22,126		$	17,932
Accruing loans/leases past due 90 days or more		55			104			84			61			159
Troubled debt restructurings - accruing		2,129			2,184			2,523			2,739			7,300
Total nonperforming loans/leases		28,521			19,940			20,485			24,926			25,391
Other real estate owned		10,680			10,951			9,729			8,496			3,955
Other repossessed assets		210			290			346			255			212
Total nonperforming assets	$	39,411		$	31,181		$	30,560		$	33,677		$	29,558
Nonperforming loans/leases to total loans/leases		1.81	%		1.29	%		1.40	%		1.62	%		1.97	%
Nonperforming assets to total loans/leases plus reposessed property		2.49	%		2.00	%		2.08	%		2.18	%		2.29	%
Nonperforming assets to total assets		1.61	%		1.27	%		1.28	%		1.35	%		1.41	%
Texas ratio (3)		25.13	%		20.23	%		18.43	%		20.44	%		18.68	%

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

(2) Includes troubled debt restructurings of $9.6 million at September 30, 2014, $9.8 million at June 30, 2014, $10.9 million at December 31, 2013, $13.7 million at September 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 September 30, 2014, government guaranteed amounts of nonaccrual loans totaled approximately $557 thousand, or 2% of the $26.3 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 September 30, 2014 were $39.4 million, which were up $8.9 million from December 31, 2013, and up $5.7 million from September 30, 2013. In addition, the ratio of nonperforming assets to total assets was 1.61% at September 30, 2014, which was up from 1.28% at December 31, 2013, and up from 1.35% at September 30, 2013. During the first nine months 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 $36.5 million during the third quarter of 2014, mostly in short-term, low cost brokered and retail time deposits. The table below presents the composition of the Company’s deposit portfolio.

	As of
	September 30, 2014					June 30, 2014					December 31, 2013					September 30, 2013
	(dollars in thousands)
	Amount		%			Amount		%			Amount		%			Amount		%
Noninterest bearing demand deposits	$	535,967		31	%	$	531,063		31	%	$	542,566		33	%	$	515,365		29	%
Interest bearing demand deposits		762,954		45	%		760,242		46	%		715,643		43	%		780,546		45	%
Time deposits		319,105		19	%		298,011		18	%		326,852		20	%		382,819		22	%
Brokered time deposits		95,841		6	%		88,052		5	%		61,930		4	%		63,103		4	%
	$	1,713,867		100	%	$	1,677,368		100	%	$	1,646,991		100	%	$	1,741,833		100	%

The Company has been successful in growing its noninterest bearing deposit portfolio over the past few years, growing average balances $68.9 million, or 14%, comparing the year-to-date average for the third quarter of 2014 to the same period of 2013. Most of this growth continued 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
	September 30, 2014		June 30, 2014		December 31, 2013		September 30, 2013
	(dollars in thousands)
Overnight repurchase agreements with customers	$	135,697	$	114,712	$	98,823	$	124,330
Federal funds purchased		26,490		89,610		50,470		44,930
	$	162,187	$	204,322	$	149,293	$	169,260

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 $26.4 million, or 12%, during the third 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
	September 30, 2014		June 30, 2014		December 31, 2013		September 30, 2013
	(dollars in thousands)
Structured repos	$	130,000	$	130,000	$	130,000	$	130,000
Term note		18,800		18,800		9,800		10,000
364-day revolving note		-		-		-		-
Series A subordinated notes		2,655		2,653		2,648		2,646
	$	151,455	$	151,453	$	142,448	$	142,646

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 September 30, 2014). Additionally, the Company continued to maintain its $10.0 million revolving line of credit note. At September 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.

	September 30, 2014				December 31, 2013
			Weighted				Weighted
			Average				Average
			Interest Rate				Interest Rate
	Amount Due		at Quarter-End		Amount Due		at Year-End
Maturity:
Year ending December 31:	(dollar amounts in thousands)
2014	$	64,219		0.51	$	110,521		1.24
2015		67,000		1.35		41,000		2.00
2016		48,642		3.63		48,642		3.63
2017		48,145		3.17		43,075		3.43
2018		60,042		3.41		58,042		3.47
Thereafter		134,293		3.23		122,000		3.33
Total Wholesale Funding	$	422,341		2.58	$	423,280		2.72

During the first nine months of 2014, wholesale funding maturing in 2014 decreased by $46.3 million. This is the net result of $99.2 million of maturities offset by the addition of $52.9 million in short-term, low cost FHLB advances and brokered time deposits.

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.

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

	As of
	September 30, 2014						June 30, 2014						December 31, 2013						September 30, 2013
	Amount			%			Amount			%			Amount			%			Amount			%
	(dollars in thousands)
Common stock	$	8,058					$	8,050					$	8,006					$	5,932
Additional paid in capital - common		61,277						60,999						60,360						38,716
Retained earnings		75,200						71,137						64,637						61,787
Accumulated other comprehensive loss		(4,749	)					(3,937	)					(13,644	)					(10,039	)
Less: Treasury stock		(1,606	)					(1,606	)					(1,606	)					(1,606	)
Total common stockholders' equity		138,180			100	%		134,643			100	%		117,753			80	%		94,790			64	%
Preferred stock		-						-						30						55
Additional paid in capital - preferred		-						-						29,794						53,108
Total preferred stockholders' equity		-			-			-			-			29,824			20	%		53,163			36	%
Total stockholders' equity	$	138,180			100	%	$	134,643			100	%	$	147,577			100	%	$	147,953			100	%
Tangible common equity (TCE)* / total tangible assets (TA)		5.45	%					5.27	%					4.71	%					3.56	%
TCE/TA excluding accumulated other comprehensive income (loss)		5.64	%					5.43	%					5.29	%					3.96	%

*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 nine months ended September 30, 2014 and 2013, respectively.

	For the quarter ended September 30,						For the nine months ended September 30,
	2014			2013			2014			2013
	(dollars in thousands)
Beginning balance	$	134,643		$	145,446		$	147,577		$	140,434
Net income		4,063			3,812			11,960			11,122
Other comprehensive income (loss), net of tax		(812	)		(818	)		8,895			(14,746	)
Preferred and common cash dividends declared		-			(811	)		(1,397	)		(2,663	)
Issuance of 834,715 shares of common stock for acquisition of CNB, net		-			-			-			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	)		-
Other *		286			324			969			789
Ending balance	$	138,180		$	147,953		$	138,180		$	147,953

*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 $114.3 million during the third 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 September 30, 2014, the subsidiary banks had 35 lines of credit totaling $371.7 million, of which $18.2 million was secured and $353.5 million was unsecured. At September 30, 2014, $258.8 million was available as $26.5 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 September 30, 2014, the Company had not borrowed on this revolving credit note and had the full amount available.

Investing activities used cash of $40.7 million during the first nine months of 2014 compared to $145.4 million for the same period of 2013. Proceeds from calls, maturities, paydowns, and sales of securities were $115.7 million for the first nine months of 2014 compared to $215.0 million for the same period of 2013. Purchases of securities used cash of $48.5 million for the first nine months of 2014 compared to $297.0 million for the same period of 2013. The net increase in loans/leases used cash of $115.6 million for the first nine months of 2014 compared to $65.7 million for the same period of 2013.

Financing activities provided cash of $22.6 million for the first nine months of 2014 compared to $111.9 million for same period of 2013. Net increases in deposits totaled $66.9 million for the first nine months of 2014 compared to $112.7 million for the same period of 2013. During the first nine months of 2014, the Company’s short-term borrowings increased $12.9 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 $18.5 million for the first nine months of 2014 compared to $30.7 million for the same period of 2013.

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Part I

Item 2

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 September 30, 2014.

Name	Date Issued	Amount Issued		Interest Rate	Interest Rate as of 9/30/2014			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 September 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 September 30, 2014 and December 31, 2013, that the Company and the subsidiary banks met all capital adequacy requirements to which they were subject.

61

Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

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 September 30, 2014 and December 31, 2013 are also presented in the following tables (dollars in thousands). As of September 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 September 30, 2014:
Company:
Total risk-based capital	$	200,649		11.10	%	$	144,672	>		8.0	%	N/A			N/A
Tier 1 risk-based capital		175,146		9.69	%		72,336	>		4.0		N/A			N/A
Leverage ratio		175,146		7.53	%		92,995	>		4.0		N/A			N/A
Quad City Bank & Trust:
Total risk-based capital	$	103,195		11.41	%	$	72,337	>		8.0	%	$	90,421	>		10.00	%
Tier 1 risk-based capital		92,808		10.26	%		36,168	>		4.0			54,252	>		6.00	%
Leverage ratio		92,808		7.23	%		51,330	>		4.0			64,162	>		5.00	%
Cedar Rapids Bank & Trust:
Total risk-based capital	$	75,550		11.87	%	$	50,922	>		8.0	%	$	63,653	>		10.00	%
Tier 1 risk-based capital		67,587		10.62	%		25,461	>		4.0			38,192	>		6.00	%
Leverage ratio		67,587		8.02	%		33,729	>		4.0			42,162	>		5.00	%
Rockford Bank & Trust:
Total risk-based capital	$	35,467		12.81	%	$	22,141	>		8.0	%	$	27,677	>		10.00	%
Tier 1 risk-based capital		32,002		11.56	%		11,071	>		4.0			16,606	>		6.00	%
Leverage ratio		32,002		9.06	%		14,122	>		4.0			17,652	>		5.00	%

62

Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

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.

63

Part I

Item 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS – continued

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.

64

Part I

Item 3

QUANTITATIVE AND QUALITATIVE 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.

65

Part I

Item 3

QUANTITATIVE AND QUALITATIVE 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 June 30, 2014			As of December 31, 2013			As of December 31, 2012
100 basis point downward shift		-10.0	%		-1.3	%		-1.0	%		-1.5	%
200 basis point upward shift		-10.0	%		-5.6	%		-4.8	%		-0.9	%
300 basis point upward shock		-25.0	%		-13.8	%		-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 June 30, 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).

66

Part I

Item 3

QUANTITATIVE AND QUALITATIVE 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.

67

Part I

Item 4

CONTROLS 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 September 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.

68

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

69

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 September 30, 2014 and December 31, 2013; (ii) Consolidated Statements of Income for the three and nine months ended September 30, 2014 and September 30, 2013; (iii) Consolidated Statements of Comprehensive Income (Loss) for the three months and nine months ended September 30, 2014 and September 30, 2013; (iv) Consolidated Statements of Changes in Stockholders’ Equity for the three and nine months ended September 30, 2014 and September 30, 2013; (v) Consolidated Statements of Cash Flows for the nine months ended September 30, 2014 and September 30, 2013; and (vi) Notes to the Consolidated Financial Statements.

70

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	November 7, 2014	/s/ Douglas M. Hultquist
		Douglas M. Hultquist, President
		Chief Executive Officer
Date	November 7, 2014	/s/ Todd A. Gipple
		Todd A. Gipple, Executive Vice President
		Chief Operating Officer
		Chief Financial Officer
Date	November 7, 2014	/s/ Elizabeth A. Grabin
		Elizabeth A. Grabin, Vice President
		Controller
		Principal Accounting Officer

71

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:      November 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:      November 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 September 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

November 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 September 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

November 7, 2014

XML

Note 3 - Loans/Leases Receivable (Details) - Delinquency Status (USD $)	Sep. 30, 2014		Dec. 31, 2013
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	$ 1,177,475,092		$ 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	160,806,362	[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	1,669,717	[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	162,476,079	[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	153,243,203	[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	1,710,817	[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	154,954,020	[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	70,535,287	[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	1,224,886	[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	71,760,173	[1]	76,033,810	[1]
Performing Financing Receivable [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	384,584,852	[1]	348,040,742	[1]
Nonperforming Financing Receivable [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	4,605,420	[1]	4,250,833	[1]
Delinquent Loans [Member]
Note 3 - Loans/Leases Receivable (Details) - Delinquency Status [Line Items]
Delinquent Loan Status	$ 389,190,272	[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.

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Note 7 - Full Redemption of Series F Preferred STock (Details) (USD $)				1 Months Ended			9 Months Ended
	Sep. 30, 2014	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	0	29,867

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Note 6 - Fair Value (Details) - Quantitative Information About Level Fair Value Measurements (USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 25,150,866	$ 19,516,934
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%
Impaired Loans/Leases [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	13,616,631	9,009,557
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%
Other Real Estate Owned [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 11,534,235	$ 10,507,377
Valuation technique	Appraisal of collateral	Appraisal of collateral

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Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases (USD $)	Sep. 30, 2014		Dec. 31, 2013
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual loans/leases	$ 26,337,439		$ 17,877,897
Troubled debt restructurings - accruing	11,749,543		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]
Nonaccrual loans/leases	7,926,551	[1]	1,744,981	[2]
Troubled debt restructurings - accruing	1,437,974		878,381
Total nonperforming loans/leases	9,364,525		2,623,362
Percentage of total nonperforming loans/leases	32.83%		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			60,286
Nonaccrual loans/leases	1,173,258	[1]	1,139,385	[2]
Total nonperforming loans/leases	1,173,258		1,199,671
Percentage of total nonperforming loans/leases	4.11%		5.86%
Commercial Construction, Land Development, and Other Land [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual loans/leases	613,351	[1]	1,185,090	[2]
Total nonperforming loans/leases	613,351		1,185,090
Percentage of total nonperforming loans/leases	2.15%		5.79%
Non-Owner Occupied Commercial Real Estate [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual loans/leases	12,765,161	[1]	10,320,491	[2]
Troubled debt restructurings - accruing			905,205
Total nonperforming loans/leases	12,765,161		11,225,696
Percentage of total nonperforming loans/leases	44.76%		54.80%
Finance Leases Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual loans/leases	1,669,717	[1]	894,458	[2]
Total nonperforming loans/leases	1,669,717		894,458
Percentage of total nonperforming loans/leases	5.85%		4.37%
Residential Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing past due 90 days or more	51,094		20,126
Nonaccrual loans/leases	1,325,827	[1]	1,618,483	[2]
Troubled debt restructurings - accruing	333,895		371,995
Total nonperforming loans/leases	1,710,816		2,010,604
Percentage of total nonperforming loans/leases	6.00%		9.82%
Consumer Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing past due 90 days or more	4,312		3,762
Nonaccrual loans/leases	863,574	[1]	975,009	[2]
Troubled debt restructurings - accruing	357,000		367,000
Total nonperforming loans/leases	1,224,886		1,345,771
Percentage of total nonperforming loans/leases	4.29%		6.57%
Total [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing past due 90 days or more	55,406		84,174
Nonaccrual loans/leases	26,337,439	[1]	17,877,897	[2]
Troubled debt restructurings - accruing	2,128,869		2,522,581
Total nonperforming loans/leases	$ 28,521,714		$ 20,484,652
Percentage of total nonperforming loans/leases	100.00%		100.00%

[1] Nonaccrual loans/leases includes $9,620,674 of troubled debt restructurings, including $81,043 in commercial and industrial loans, $8,768,590 in commercial real estate loans, $64,144 in direct financing leases, $515,827 in residential real estate loans, and $191,070 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 2 - Investment Securities (Details) - Amortized Cost and Fair Value of Investment Securities (USD $)	Sep. 30, 2014	Dec. 31, 2013
Securities held to maturity:
Securities held to maturity, amortized cost	$ 185,840,139	$ 145,451,895
Securities held to maturity, gross unrealized gains	1,861,338	299,789
Securities held to maturity, gross unrealized losses	(1,765,426)	(7,111,579)
Securities held to maturity, fair value	185,936,051	138,640,105
Securities available for sale:
Available for Sale Securities, amortized cost	474,406,289	573,870,562
Available for Sale Securities, gross unrealized gains	3,098,794	2,643,218
Available for Sale Securities, gross unrealized losses	(10,560,516)	(24,755,322)
Available for sale securities	466,944,567	551,758,458
US States and Political Subdivisions Debt Securities [Member]
Securities held to maturity:
Securities held to maturity, amortized cost	184,790,139	144,401,895
Securities held to maturity, gross unrealized gains	1,861,338	299,789
Securities held to maturity, gross unrealized losses	(1,765,426)	(7,111,579)
Securities held to maturity, fair value	184,886,051	137,590,105
Securities available for sale:
Available for Sale Securities, amortized cost	30,209,955	35,813,866
Available for Sale Securities, gross unrealized gains	1,149,656	923,315
Available for Sale Securities, gross unrealized losses	(99,465)	(778,324)
Available for sale securities	31,260,146	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	1,354,116	1,372,365
Available for Sale Securities, gross unrealized gains	545,951	524,798
Available for Sale Securities, gross unrealized losses	0	0
Available for sale securities	1,900,067	1,897,163
US Government Agencies Debt Securities [Member]
Securities available for sale:
Available for Sale Securities, amortized cost	315,019,934	376,574,132
Available for Sale Securities, gross unrealized gains	30,913	41,696
Available for Sale Securities, gross unrealized losses	(9,046,242)	(20,142,841)
Available for sale securities	306,004,605	356,472,987
Residential Mortgage Backed Securities [Member]
Securities available for sale:
Available for Sale Securities, amortized cost	127,822,284	160,110,199
Available for Sale Securities, gross unrealized gains	1,372,274	1,153,409
Available for Sale Securities, gross unrealized losses	(1,414,809)	(3,834,157)
Available for sale securities	$ 127,779,749	$ 157,429,451

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Note 8 - Derivatives and Hedging Activities (Details) - Summary of Interest Rate Cap Derivatives (USD $)	Sep. 30, 2014
Derivatives, Fair Value [Line Items]
Notional Amount	$ 30,000,000
Fair Value of Cap Asset	1,848,119
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	751,668
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	$ 1,096,451

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Note 4 - Earnings Per Share (Details)	1 Months Ended
	Dec. 23, 2013
Series E Preferred Stock [Member]
Note 4 - Earnings Per Share (Details) [Line Items]
Conversion of Stock, Shares Converted	25,000,000
Common Stock [Member]
Note 4 - Earnings Per Share (Details) [Line Items]
Conversion of Stock, Shares Issued	2,057,502

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Note 3 - Loans/Leases Receivable (Details) - Additional Information on Impaired Loans (USD $)	Sep. 30, 2014	Dec. 31, 2013
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	$ 10,374,176	$ 6,757,674
Impaired loans with no related allowance unpaid principal balance	10,762,039	7,057,203
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	16,923,039	12,322,746
Impaired loans with related allowance unpaid principal balance	18,400,023	13,838,755
Impaired loans related allowance	5,480,762	5,008,822
Total Impaired Loans/Leases:
Impaired loans recorded investment	27,297,215	19,080,420
Impaired loans unpaid principal balance	29,162,062	20,895,958
Impaired loans related allowance	5,480,762	5,008,822
Commercial and Industrial [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	560,005	492,622
Impaired loans with no related allowance unpaid principal balance	667,983	568,951
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	7,698,676	1,269,228
Impaired loans with related allowance unpaid principal balance	8,464,069	1,956,755
Impaired loans related allowance	2,204,926	927,453
Total Impaired Loans/Leases:
Impaired loans recorded investment	8,258,681	1,761,850
Impaired loans unpaid principal balance	9,132,052	2,525,706
Impaired loans related allowance	2,204,926	927,453
Owner-Occupied Commercial Real Estate [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	760,586	392,542
Impaired loans with no related allowance unpaid principal balance	873,808	392,542
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	439,701	159,247
Impaired loans with related allowance unpaid principal balance	439,701	159,247
Impaired loans related allowance	143,453	67,498
Total Impaired Loans/Leases:
Impaired loans recorded investment	1,200,287	551,789
Impaired loans unpaid principal balance	1,313,509	551,789
Impaired loans related allowance	143,453	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	1,385,356	1,943,168
Impaired loans with no related allowance unpaid principal balance	1,496,556	2,054,368
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	794,703	888,547
Impaired loans with related allowance unpaid principal balance	806,703	1,011,747
Impaired loans related allowance	457,086	503,825
Total Impaired Loans/Leases:
Impaired loans recorded investment	2,180,059	2,831,715
Impaired loans unpaid principal balance	2,303,259	3,066,115
Impaired loans related allowance	457,086	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	4,989,393	1,790,279
Impaired loans with no related allowance unpaid principal balance	5,044,816	1,902,279
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	6,061,267	7,783,132
Impaired loans with related allowance unpaid principal balance	6,760,858	8,488,414
Impaired loans related allowance	1,872,961	2,603,381
Total Impaired Loans/Leases:
Impaired loans recorded investment	11,050,660	9,573,411
Impaired loans unpaid principal balance	11,805,674	10,390,693
Impaired loans related allowance	1,872,961	2,603,381
Finance Leases Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	1,109,844	557,469
Impaired loans with no related allowance unpaid principal balance	1,109,884	557,469
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	559,873	336,989
Impaired loans with related allowance unpaid principal balance	559,873	336,989
Impaired loans related allowance	165,617	192,847
Total Impaired Loans/Leases:
Impaired loans recorded investment	1,669,717	894,458
Impaired loans unpaid principal balance	1,669,757	894,458
Impaired loans related allowance	165,617	192,847
Residential Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	1,113,535	1,071,927
Impaired loans with no related allowance unpaid principal balance	1,113,535	1,071,927
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	546,187	1,044,820
Impaired loans with related allowance unpaid principal balance	546,187	1,044,820
Impaired loans related allowance	129,859	246,266
Total Impaired Loans/Leases:
Impaired loans recorded investment	1,659,722	2,116,747
Impaired loans unpaid principal balance	1,659,722	2,116,747
Impaired loans related allowance	129,859	246,266
Consumer Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Impaired loans with no related allowance recorded investment	455,457	509,667
Impaired loans with no related allowance unpaid principal balance	455,457	509,667
Impaired Loans/Leases with Specific Allowance Recorded:
Impaired loans with related allowance recorded investment	822,632	840,783
Impaired loans with related allowance unpaid principal balance	822,632	840,783
Impaired loans related allowance	506,860	467,552
Total Impaired Loans/Leases:
Impaired loans recorded investment	1,278,089	1,350,450
Impaired loans unpaid principal balance	1,278,089	1,350,450
Impaired loans related allowance	$ 506,860	$ 467,552

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Note 6 - Fair Value (Details) - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities (USD $)	Sep. 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	$ 42,326,177	$ 41,950,790
Federal funds sold	29,760,000	39,435,000
Interest-bearing deposits at financial institutions	34,631,773	33,044,917
Investment securities:
Held to maturity	185,840,139
Held to maturity	185,936,051	138,640,105
Available for sale	466,944,567	551,758,458
Loans/leases receivable, net	1,177,475,092	1,103,441,058
Derivative instruments	1,848,119
Derivative instruments	1,848,119
Deposits:
Deposits	1,713,867,393	1,646,991,243
Other borrowings	151,455,209	142,448,362
Nonmaturity Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Deposits:
Deposits	1,298,921,913	1,256,209,352
Deposits, fair value	1,298,921,913	1,256,209,352
Time Deposits [Member] | Fair Value, Inputs, Level 2 [Member]
Deposits:
Deposits	414,945,479	390,781,891
Deposits, fair value	416,050,000	391,923,000
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	34,631,773	33,044,917
Interest-bearing deposits at financial institutions	34,631,773	33,044,917
Interest-bearing deposits at financial institutions	34,631,773	33,044,917
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	42,326,177	41,950,790
Cash and due from banks	42,326,177	41,950,790
Interest-bearing deposits at financial institutions	42,326,177	41,950,790
Investment securities:
Available for sale		317,698
Fair Value, Inputs, Level 2 [Member] | Interest Rate Cap [Member]
Investment securities:
Derivative instruments	1,848,119
Derivative instruments	1,848,119
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	29,760,000	39,435,000
Federal funds sold	29,760,000	39,435,000
Investment securities:
Available for sale		551,440,760
Loans/leases receivable, net	1,537,493,236	1,430,489,328
Loans/leases receivable, net, fair value	1,544,453,008	1,441,952,443
Derivative instruments	1,848,119
Derivative instruments	1,848,119
Deposits:
Short-term borrowings	162,186,698	149,292,967
Short-term borrowings	162,186,698	149,292,967
Federal Home Loan Bank advances	196,500,000	231,350,000
Federal Home Loan Bank advances	202,507,000	241,623,000
Other borrowings	151,455,209	142,448,362
Other borrowings	160,531,000	152,761,000
Junior subordinated debentures	40,389,809	40,289,830
Junior subordinated debentures	28,457,573	28,094,228
Fair Value, Inputs, Level 3 [Member]
Investment securities:
Held to maturity	185,840,139	145,451,895
Held to maturity	185,936,051	138,640,105
Loans/leases receivable, net	12,607,992	8,342,182
Loans/leases receivable, net, fair value	$ 13,616,631	$ 9,009,557

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Note 1 - Summary of Significant Accounting Policies

9 Months Ended

Sep. 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 September 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, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 and is not expected to have a significant impact 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.

In August 2014, FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure. ASU 2014-14 requires creditors to reclassify loans that are within the scope of the ASU to “other receivables” upon foreclosure, rather than reclassifying them as other real estate owned. The most common types of government guaranteed loans include those guaranteed by the Federal Housing Authority (FHA), U.S. Department of Housing and Urban Development (HUD), U.S. Department of Veterans Affairs (VA) and the U.S. Small Business Administration (SBA). The separate other receivable recorded upon foreclosure is to be measured based on the amount of the loan balance (principal and interest) the creditor expects to recover from the guarantor. ASU 2014-14 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014 and is not expected to have a significant impact on the Company’s consolidated financial statements.

Allowance for estimated losses on loans/leases: The Company has certain loans risk-rated 7 (substandard), which are not classified as impaired based on the facts of the credit.  For these non-impaired and risk-rated 7 loans, the Company does not provide a general allowance as it does for all other non-impaired loans. Rather, the Company performs a more precise analysis including evaluation of the cash flow and collateral valuation for each individual credit.  A specific allowance is established based upon this evaluation. These non-impaired risk-rated 7 loans exist primarily in the commercial and industrial and commercial real estate segments.

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 4 - Earnings Per Share (Details) - Earnings Per Share - Basic and Diluted (USD $)	3 Months Ended						9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Sep. 30, 2013	Jun. 30, 2013	Mar. 31, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share, Basic and Diluted [Abstract]
Net income (in Dollars)	$ 4,062,665	$ 4,007,836	$ 3,889,215	$ 3,811,944	$ 4,045,231	$ 3,265,144	$ 11,959,716	$ 11,122,319
Less: Preferred stock dividends (in Dollars)				810,837			1,081,877	2,432,512
Net income attributable to QCR Holdings, Inc. common stockholders (in Dollars)	$ 4,062,665			$ 3,001,107			$ 10,877,839	$ 8,689,807
Earnings per common share attributable to QCR Holdings, Inc. common stockholders
Basic (in Dollars per share)	$ 0.51			$ 0.52			$ 1.37	$ 1.62
Diluted (in Dollars per share)	$ 0.50			$ 0.51			$ 1.35	$ 1.59
Weighted average common shares outstanding*	7,931,944			5,806,019			7,919,201	5,375,557
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan	122,041			109,260			121,217	106,741
Weighted average common and common equivalent shares outstanding	8,053,985			5,915,279			8,040,418	5,482,298

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Note 2 - Investment Securities (Details) - Amoritized Cost and Fair Values of General Obligation Bonds by Issuer's State (USD $)	Sep. 30, 2014	Dec. 31, 2013
Note 2 - Investment Securities (Details) - Amoritized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of Issuers	272	269
General Obligation Bonds [Member] | Illinois [Member]
Note 2 - Investment Securities (Details) - Amoritized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of Issuers	32	36
Amortized Cost	$ 23,058,258	$ 15,063,325
Fair Value	23,431,499	15,264,718
Average Exposure Per Issuer (Fair Value)	732,234	424,020
General Obligation Bonds [Member] | Iowa [Member]
Note 2 - Investment Securities (Details) - Amoritized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of Issuers	25	30
Amortized Cost	16,557,625	17,946,059
Fair Value	16,746,965	17,444,045
Average Exposure Per Issuer (Fair Value)	669,879	581,468
General Obligation Bonds [Member] | Missouri [Member]
Note 2 - Investment Securities (Details) - Amoritized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of Issuers	12
Amortized Cost	6,136,797
Fair Value	6,097,169
Average Exposure Per Issuer (Fair Value)	508,097
General Obligation Bonds [Member] | Other State [Member]
Note 2 - Investment Securities (Details) - Amoritized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of Issuers	52	67
Amortized Cost	16,674,720	22,166,026
Fair Value	16,908,510	21,512,582
Average Exposure Per Issuer (Fair Value)	325,164	321,083
General Obligation Bonds [Member]
Note 2 - Investment Securities (Details) - Amoritized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of Issuers	121	133
Amortized Cost	62,427,400	55,175,410
Fair Value	63,184,143	54,221,345
Average Exposure Per Issuer (Fair Value)	522,183	407,679
Revenue Bonds [Member] | Iowa [Member]
Note 2 - Investment Securities (Details) - Amoritized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of Issuers	37	31
Amortized Cost	59,955,899	47,903,572
Fair Value	60,603,053	46,257,997
Average Exposure Per Issuer (Fair Value)	1,637,920	1,492,193
Revenue Bonds [Member] | Missouri [Member]
Note 2 - Investment Securities (Details) - Amoritized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of Issuers	65	57
Amortized Cost	54,016,464	42,085,249
Fair Value	53,997,386	40,054,613
Average Exposure Per Issuer (Fair Value)	830,729	702,713
Revenue Bonds [Member] | Other State [Member]
Note 2 - Investment Securities (Details) - Amoritized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of Issuers	31	35
Amortized Cost	8,298,997	9,009,148
Fair Value	8,387,020	8,693,222
Average Exposure Per Issuer (Fair Value)	270,549	248,378
Revenue Bonds [Member] | Indiana [Member]
Note 2 - Investment Securities (Details) - Amoritized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of Issuers	12	8
Amortized Cost	17,991,200	15,020,000
Fair Value	17,835,277	14,324,717
Average Exposure Per Issuer (Fair Value)	1,486,273	1,790,590
Revenue Bonds [Member] | Kansas [Member]
Note 2 - Investment Securities (Details) - Amoritized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of Issuers	6	5
Amortized Cost	12,310,134	11,022,382
Fair Value	12,139,318	9,997,068
Average Exposure Per Issuer (Fair Value)	2,023,220	1,999,414
Revenue Bonds [Member]
Note 2 - Investment Securities (Details) - Amoritized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of Issuers	151	136
Amortized Cost	152,572,694	125,040,351
Fair Value	152,962,054	119,327,617
Average Exposure Per Issuer (Fair Value)	$ 1,012,994	$ 877,409

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Note 2 - Investment Securities (Details) - Amortized Cost and Fair Value of Securities by Contractual Maturity (USD $)	Sep. 30, 2014	Dec. 31, 2013
Securities held to maturity:
Due in one year or less	$ 12,682,406
Due in one year or less	12,683,453
Due after one year through five years	16,825,667
Due after one year through five years	16,856,667
Due after five years	156,332,066
Due after five years	156,395,931
	185,840,139
	185,936,051	138,640,105
Securities available for sale:
Due in one year or less	3,649,998
Due in one year or less	3,664,418
Due after one year through five years	60,972,541
Due after one year through five years	60,242,076
Due after five years	280,607,350
Due after five years	273,358,257
	345,229,889
	337,264,751
Amortized Cost	474,406,289
Fair Value	466,944,567
Residential Mortgage Backed Securities [Member]
Securities available for sale:
Amortized Cost	127,822,284
Fair Value	127,779,749
Other Securities [Member]
Securities held to maturity:
	1,050,000	1,050,000
Securities available for sale:
Amortized Cost	1,354,116
Fair Value	1,900,067
US States and Political Subdivisions Debt Securities [Member] | Callable Securities [Member]
Securities available for sale:
Amortized Cost	18,473,306
Fair Value	18,985,950
Securities held to maturity:
Municipal securities	99,883,698
Municipal securities	100,074,857
US States and Political Subdivisions Debt Securities [Member]
Securities held to maturity:
	184,886,051	137,590,105
US Government-sponsored Enterprises Debt Securities [Member] | Callable Securities [Member]
Securities available for sale:
Amortized Cost	250,617,040
Fair Value	243,092,527
Callable Securities [Member]
Securities available for sale:
Amortized Cost	269,090,346
Fair Value	$ 262,078,477

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Note 5 - Business Segment Information (Details) - Selected Financial Information on the Company’s Business Segments (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Segment Reporting Information [Line Items]
Total revenue	$ 26,864,284	$ 27,930,896	$ 79,095,925	$ 78,760,564
Net interest income	17,475,331	17,310,336	51,289,915	47,209,705
Net income attributable to QCR Holdings, Inc.	4,062,665	3,811,944	11,959,716	11,122,319
Total assets	2,450,595,553	2,485,714,438	2,450,595,553	2,485,714,438	2,394,952,924
Provision for loan/lease losses	1,063,323	1,366,984	3,159,364	3,944,903
Goodwill	3,222,688	3,222,688	3,222,688	3,222,688	3,222,688
Core deposit intangible	1,720,799	3,311,073	1,720,799	3,311,073	1,870,433
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Total revenue	(5,609,315)	(5,489,143)	(16,272,535)	(14,977,630)
Net income attributable to QCR Holdings, Inc.	(5,492,285)	(5,387,434)	(15,936,257)	(14,681,679)
Total assets	(204,813,887)	(239,050,305)	(204,813,887)	(239,050,305)
Quad City Bank and Trust [Member]
Segment Reporting Information [Line Items]
Total revenue	12,467,712	12,610,738	36,368,665	36,476,985
Net interest income	9,234,089	8,494,707	27,235,902	25,371,337
Net income attributable to QCR Holdings, Inc.	2,602,238	2,541,293	7,397,943	6,989,589
Total assets	1,274,033,270	1,248,417,915	1,274,033,270	1,248,417,915
Provision for loan/lease losses	609,657	674,984	1,779,698	2,052,889
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	8,801,737	10,006,670	25,816,115	24,911,543
Net interest income	6,179,763	6,883,007	17,820,878	15,905,288
Net income attributable to QCR Holdings, Inc.	1,861,236	1,941,807	5,577,993	5,430,289
Total assets	822,348,680	927,667,522	822,348,680	927,667,522
Provision for loan/lease losses	331,666	580,000	881,666	980,014
Core deposit intangible	1,720,799	3,311,073	1,720,799	3,311,073
Rockford Bank and Trust [Member]
Segment Reporting Information [Line Items]
Total revenue	3,595,245	3,457,684	10,779,962	10,291,554
Net interest income	2,584,613	2,421,255	7,637,029	7,160,723
Net income attributable to QCR Holdings, Inc.	669,814	445,521	1,755,117	1,261,243
Total assets	346,791,265	333,804,180	346,791,265	333,804,180
Provision for loan/lease losses	122,000	112,000	498,000	912,000
Wealth Management [Member]
Segment Reporting Information [Line Items]
Total revenue	2,082,609	1,946,795	6,387,215	5,488,081
Net income attributable to QCR Holdings, Inc.	358,997	458,813	1,205,204	1,000,558
All Other [Member]
Segment Reporting Information [Line Items]
Total revenue	5,526,296	5,398,152	16,016,503	16,570,031
Net interest income	(523,134)	(488,633)	(1,403,894)	(1,227,643)
Net income attributable to QCR Holdings, Inc.	4,062,665	3,811,944	11,959,716	11,122,319
Total assets	$ 212,236,225	$ 214,875,126	$ 212,236,225	$ 214,875,126

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Note 3 - Loans/Leases Receivable (Details) (USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013	Sep. 30, 2014		Sep. 30, 2013	Dec. 31, 2013
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Losses on Residual Value	$ 0		$ 0	$ 0		$ 0
Financing Receivable, Recorded Investment, Nonaccrual Status	26,337,439			26,337,439			17,877,897
Financing Receivable, Modifications, Recorded Investment	11,749,543			11,749,543			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	515,827			515,827			446,996
Troubled Debt Restructurings [Member] | Commercial and Industrial [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	81,043			81,043			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	8,768,590			8,768,590			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	64,144			64,144
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	9,620,674			9,620,674			10,890,785
Financing Receivable, Modifications, Number of Contracts	1		9	7		17
Financing Receivable, Modifications, Post-Modification Recorded Investment	71,760		6,779,013	1,548,350		8,596,173
Consumer Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	191,070			191,070
Nonaccrual [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Modifications, Number of Contracts				3		10
Financing Receivable, Modifications, Post-Modification Recorded Investment				75,767		6,087,296
Residential Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Disposal Group, Including Discontinued Operation, Mortgage Loans	1,642,300			1,642,300			1,358,290
Financing Receivable, Recorded Investment, Nonaccrual Status	1,325,827	[1]		1,325,827	[1]		1,618,483	[2]
Financing Receivable, Modifications, Recorded Investment	333,895			333,895			371,995
Commercial and Industrial [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	7,926,551	[1]		7,926,551	[1]		1,744,981	[2]
Financing Receivable, Modifications, Recorded Investment	1,437,974			1,437,974			878,381
Finance Leases Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,669,717	[1]		1,669,717	[1]		894,458	[2]
Consumer Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	863,574	[1]		863,574	[1]		975,009	[2]
Financing Receivable, Modifications, Recorded Investment	$ 357,000			$ 357,000			$ 367,000

[1] Nonaccrual loans/leases includes $9,620,674 of troubled debt restructurings, including $81,043 in commercial and industrial loans, $8,768,590 in commercial real estate loans, $64,144 in direct financing leases, $515,827 in residential real estate loans, and $191,070 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 $)	Sep. 30, 2014		Jun. 30, 2014	Dec. 31, 2013		Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	$ 1,566,665,364			$ 1,455,732,633
Plus deferred loan/lease origination costs	6,203,781			4,546,925
Total Loans/Leases plus deferred loan/lease origination costs	1,572,869,145			1,460,279,558
Less allowance for estimated losses on loans/leases	(22,767,917)		(23,067,024)	(21,448,048)		(22,062,389)	(21,156,379)	(19,925,204)
Loans/leases net of allowance for estimated losses	1,550,101,228			1,438,831,510
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	479,747,059			431,688,129
Less allowance for estimated losses on loans/leases	(6,914,058)		(6,549,378)	(5,648,774)		(5,367,524)	(4,790,828)	(4,531,545)
Owner-Occupied Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	251,076,360			261,215,912
Commercial Construction, Land Development, and Other Land [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	69,856,024			57,844,902
Other Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	376,795,649			352,692,115
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	697,728,033			671,752,929
Less allowance for estimated losses on loans/leases	(10,028,668)		(10,277,692)	(10,705,434)		(12,210,862)	(12,190,497)	(11,069,502)
Finance Leases Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Net minimum lease payments to be received	184,475,603	[1]		145,662,254	[1]
Estimated unguaranteed residual values of leased assets	1,538,482	[1]		1,694,499	[1]
Unearned lease/residual income	(23,538,006)	[1]		(18,455,311)	[1]
Loans and Leases	162,476,079	[1]		128,901,442	[1]
Plus deferred loan/lease origination costs	6,339,575	[1]		4,814,183	[1]
Total Loans/Leases plus deferred loan/lease origination costs	168,815,654	[1]		133,715,625	[1]
Less allowance for estimated losses on loans/leases	(3,106,887)	[1]	(3,319,131)	(2,517,217)	[1]	(2,323,509)	(2,187,605)	(1,990,395)
Loans/leases net of allowance for estimated losses	165,708,767	[1]		131,198,408	[1]
Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	154,954,020	[2]		147,356,323	[2]
Less allowance for estimated losses on loans/leases	(1,353,070)		(1,439,185)	(1,395,849)		(1,267,505)	(1,165,341)	(1,070,328)
Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases	71,760,173			76,033,810
Less allowance for estimated losses on loans/leases	$ (1,365,234)		$ (1,481,638)	$ (1,180,774)		$ (892,989)	$ (822,108)	$ (1,263,434)

[1] 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 nine months ended September 30, 2014 and 2013.

[2] Includes residential real estate loans held for sale totaling $1,642,300 and $1,358,290 as of September 30, 2014, and December 31, 2013, respectively.

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Consolidated Statements of Cash Flows (Unaudited) (Parentheticals)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2014 Series F Noncumulative Perpetual Preferred Stock Redemption One [Member]	Sep. 30, 2014 Series F Noncumulative Perpetual Preferred Stock Redemption Two[Member]
Redemption of shares of preferred stock, shares		15,000	14,867
Common stock	834,715

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Note 3 - Loans/Leases Receivable (Details) - Aging of the Loan/Lease Portfolio (USD $)	Sep. 30, 2014		Dec. 31, 2013
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 1,536,535,721		$ 1,430,204,215
30-59 Days Past Due	2,448,884		5,430,932
60-89 Days Past Due	1,287,914		2,135,415
Accruing Past Due 90 Days or More	55,406		84,174
Nonacrrual Loans/Loans	26,337,439		17,877,897
Total	1,566,665,364		1,455,732,633
Current as a percentage of total loan/lease portfolio	98.08%		98.25%
30-59 Days Past Due as a percentage of total loan/lease portfolio	0.16%		0.37%
60-89 Days Past Due as a percentage of total loan/lease portfolio	0.08%		0.15%
Accruing Past Due 90 Days or More as a percentage of total loan/lease portfolio	0.00%		0.01%
Nonacrrual Loans/Loans as a percentage of total loan/lease portfolio	1.68%		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	470,898,126		429,557,699
30-59 Days Past Due	638,002		199,949
60-89 Days Past Due	284,380		185,500
Nonacrrual Loans/Loans	7,926,551	[1]	1,744,981	[2]
Total	479,747,059		431,688,129
Total as a percentage of total loan/lease portfolio	32.83%		12.81%
Owner-Occupied Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	249,903,102		258,557,660
30-59 Days Past Due			465,418
60-89 Days Past Due			993,163
Accruing Past Due 90 Days or More			60,286
Nonacrrual Loans/Loans	1,173,258	[1]	1,139,385	[2]
Total	251,076,360		261,215,912
Total as a percentage of total loan/lease portfolio	4.11%		5.86%
Commercial Construction, Land Development, and Other Land [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	68,732,309		56,301,186
30-59 Days Past Due	510,364		358,626
Nonacrrual Loans/Loans	613,351	[1]	1,185,090	[2]
Total	69,856,024		57,844,902
Total as a percentage of total loan/lease portfolio	2.15%		5.79%
Other Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	363,737,989		341,743,730
30-59 Days Past Due	266,956		476,877
60-89 Days Past Due	25,543		151,017
Nonacrrual Loans/Loans	12,765,161		10,320,491
Total	376,795,649		352,692,115
Finance Leases Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	159,714,653		126,878,515
30-59 Days Past Due	699,590		714,464
60-89 Days Past Due	392,119		414,005
Nonacrrual Loans/Loans	1,669,717	[1]	894,458	[2]
Total	162,476,079	[3]	128,901,442	[3]
Total as a percentage of total loan/lease portfolio	5.85%		4.37%
Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	153,145,275		142,353,936
30-59 Days Past Due	49,543		3,088,516
60-89 Days Past Due	382,281		275,262
Accruing Past Due 90 Days or More	51,094		20,126
Nonacrrual Loans/Loans	1,325,827	[1]	1,618,483	[2]
Total	154,954,020	[4]	147,356,323	[4]
Total as a percentage of total loan/lease portfolio	6.00%		9.82%
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	70,404,267		74,811,489
30-59 Days Past Due	284,429		127,082
60-89 Days Past Due	203,591		116,468
Accruing Past Due 90 Days or More	4,312		3,762
Nonacrrual Loans/Loans	863,574	[1]	975,009	[2]
Total	$ 71,760,173		$ 76,033,810
Total as a percentage of total loan/lease portfolio	4.29%		6.57%

[1] Nonaccrual loans/leases includes $9,620,674 of troubled debt restructurings, including $81,043 in commercial and industrial loans, $8,768,590 in commercial real estate loans, $64,144 in direct financing leases, $515,827 in residential real estate loans, and $191,070 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] 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 nine months ended September 30, 2014 and 2013.

[4] Includes residential real estate loans held for sale totaling $1,642,300 and $1,358,290 as of September 30, 2014, and December 31, 2013, respectively.

XML

Note 3 - Loans/Leases Receivable (Details) - Troubled Debt Restructurings - Three Months Ending (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Interest Rate Adjusted Below Market [Member] | Residential Portfolio Segment [Member]
CONCESSION - Interest rate adjusted below market
Number of loans/leases		1		2
Pre-modification recorded investment		$ 79,661		$ 240,288
Post-modification recorded investment		79,661		240,288
Specific allowance		24,408		24,408
Interest Rate Adjusted Below Market [Member]
CONCESSION - Interest rate adjusted below market
Number of loans/leases		1		3
Pre-modification recorded investment		79,661		577,788
Post-modification recorded investment		79,661		577,788
Specific allowance		24,408		24,408
Extension of Maturity [Member] | Owner-Occupied Commercial Real Estate [Member]
CONCESSION - Interest rate adjusted below market
Number of loans/leases		1		1
Pre-modification recorded investment		61,517		61,517
Post-modification recorded investment		61,517		61,517
Extension of Maturity [Member] | Non-Owner Occupied Commercial Real Estate [Member]
CONCESSION - Interest rate adjusted below market
Number of loans/leases		7		7
Pre-modification recorded investment		6,637,835		6,637,835
Post-modification recorded investment		6,637,835		6,637,835
Specific allowance		1,518,303		1,518,303
Extension of Maturity [Member]
CONCESSION - Interest rate adjusted below market
Number of loans/leases		8	1	11
Pre-modification recorded investment		6,699,352	70,144	7,508,846
Post-modification recorded investment		6,699,352	70,144	7,508,846
Specific allowance		1,518,303	24,246	1,707,003
All Other [Member] | Residential Portfolio Segment [Member]
CONCESSION - Interest rate adjusted below market
Number of loans/leases	1		1
Pre-modification recorded investment	96,439		96,439
Post-modification recorded investment	71,760		71,760
Specific allowance	7,125		7,125
All Other [Member]
CONCESSION - Interest rate adjusted below market
Number of loans/leases	1		2
Pre-modification recorded investment	96,439		524,288
Post-modification recorded investment	71,760		499,609
Specific allowance	7,125		120,574
Troubled Debt Restructurings [Member]
CONCESSION - Interest rate adjusted below market
Number of loans/leases	1	9	7	17
Pre-modification recorded investment	96,439	6,779,013	1,573,029	8,596,173
Post-modification recorded investment	71,760	6,779,013	1,548,350	8,596,173
Specific allowance	$ 7,125	$ 1,542,711	$ 384,603	$ 1,731,411

XML

Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2014	Dec. 31, 2013
ASSETS
Cash and due from banks	$ 42,326,177	$ 41,950,790
Federal funds sold	29,760,000	39,435,000
Interest-bearing deposits at financial institutions	34,631,773	33,044,917
Securities held to maturity, at amortized cost	185,840,139	145,451,895
Securities available for sale, at fair value	466,944,567	551,758,458
Total securities	652,784,706	697,210,353
Loans receivable held for sale	1,642,300	1,358,290
Loans/leases receivable held for investment	1,571,226,845	1,458,921,268
Gross loans/leases receivable	1,572,869,145	1,460,279,558
Less allowance for estimated losses on loans/leases	(22,767,917)	(21,448,048)
Net loans/leases receivable	1,550,101,228	1,438,831,510
Premises and equipment, net	36,001,748	36,755,364
Goodwill	3,222,688	3,222,688
Core deposit intangible	1,720,799	1,870,433
Bank-owned life insurance	53,278,942	52,002,041
Restricted investment securities	15,303,175	17,027,625
Other real estate owned, net	10,679,847	9,729,053
Other assets	20,784,470	23,873,150
Total assets	2,450,595,553	2,394,952,924
Deposits:
Noninterest-bearing	535,967,035	542,566,087
Interest-bearing	1,177,900,358	1,104,425,156
Total deposits	1,713,867,393	1,646,991,243
Short-term borrowings	162,186,698	149,292,967
Federal Home Loan Bank advances	196,500,000	231,350,000
Other borrowings	151,455,209	142,448,362
Junior subordinated debentures	40,389,809	40,289,830
Other liabilities	48,016,468	37,003,742
Total liabilities	2,312,415,577	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	8,058,059	8,005,708
Additional paid-in capital	61,277,831	90,154,528
Retained earnings	75,199,959	64,637,173
Accumulated other comprehensive loss:
Less treasury stock, September 2014 and December 2013 - 121,246 common shares, at cost	(1,606,510)	(1,606,510)
Total stockholders' equity	138,179,976	147,576,780
Total liabilities and stockholders' equity	2,450,595,553	2,394,952,924
Available-for-sale Securities [Member]
Accumulated other comprehensive loss:
Accumulated Other Comprehensive loss:	(4,596,938)	(13,643,986)
Interest Rate Cap [Member]
Accumulated other comprehensive loss:
Accumulated Other Comprehensive loss:	$ (152,425)

XML

Note 6 - Fair Value (Details) - Assets Measured at Fair Value on a Recurring Basis (USD $)	Sep. 30, 2014	Dec. 31, 2013
Securities available for sale:
Available for sale securities	$ 466,944,567	$ 551,758,458
Assets measured on a non-recurring basis	25,150,866	19,516,934
Derivative instruments	1,848,119
	468,792,686
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Securities available for sale:
Available for sale securities	306,004,605	356,472,987
US Government Agencies Debt Securities [Member]
Securities available for sale:
Available for sale securities	306,004,605	356,472,987
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Securities available for sale:
Available for sale securities	127,779,749	157,429,451
Residential Mortgage Backed Securities [Member]
Securities available for sale:
Available for sale securities	127,779,749	157,429,451
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Securities available for sale:
Available for sale securities	31,260,146	35,958,857
US States and Political Subdivisions Debt Securities [Member]
Securities available for sale:
Available for sale securities	31,260,146	35,958,857
Equity Securities, Other [Member] | Fair Value, Inputs, Level 1 [Member]
Securities available for sale:
Available for sale securities	317,021	317,698
Equity Securities, Other [Member] | Fair Value, Inputs, Level 2 [Member]
Securities available for sale:
Available for sale securities	1,583,046	1,579,465
Equity Securities, Other [Member]
Securities available for sale:
Available for sale securities	1,900,067	1,897,163
Fair Value, Inputs, Level 1 [Member]
Securities available for sale:
Available for sale securities		317,698
	317,021
Fair Value, Inputs, Level 2 [Member]
Securities available for sale:
Available for sale securities		551,440,760
Derivative instruments	1,848,119
	468,475,665
Fair Value, Inputs, Level 3 [Member] | Impaired Loans/Leases [Member]
Securities available for sale:
Assets measured on a non-recurring basis	13,616,631	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	11,534,235	10,507,377
Fair Value, Inputs, Level 3 [Member]
Securities available for sale:
Assets measured on a non-recurring basis	25,150,866	19,516,934
Impaired Loans/Leases [Member]
Securities available for sale:
Assets measured on a non-recurring basis	13,616,631	9,009,557
Other Real Estate Owned [Member]
Securities available for sale:
Assets measured on a non-recurring basis	$ 11,534,235	$ 10,507,377

XML

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) (USD $)	3 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	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]	Mar. 31, 2014 Common Stock [Member] Restricted Stock [Member] Exchange [Member]	Mar. 31, 2013 Common Stock [Member] Exchange [Member]	Sep. 30, 2014 Common Stock [Member]	Jun. 30, 2014 Common Stock [Member]	Mar. 31, 2014 Common Stock [Member]	Sep. 30, 2013 Common Stock [Member]	Jun. 30, 2013 Common Stock [Member]	Mar. 31, 2013 Common Stock [Member]
Redemption of shares of Series F Noncumulative Perpetual Preferred Stock			14,867	15,000
Proceeds from issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan							5,481	8,361	6,189	5,973	9,560	5,884
Proceeds from issuance of shares of common stock as a result of stock options exercised						7,048	2,400	630	9,814	7,230	3,769	19,278
Exchange of shares of common stock in connection with restricted stock vested, net					10,300							16,798
Common cash dividends declared per share (in Dollars per share)	$ 0.04	$ 0.04
Proceeds from issuance of shares of common stock as a result of the acquisition of Community National Bancorporation, net											834,715

XML

Note 3 - Loans/Leases Receivable (Details) - Impaired Loans/Leases - Nine Months Ending (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Dec. 31, 2013
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	$ 10,374,176		$ 10,374,176	$ 6,757,674
Unpaid Principal Balance - No Allowance Recorded	10,762,039		10,762,039	7,057,203
Average Recorded Investment - No Allowance Recorded	9,655,172	9,626,276	8,788,363
Interest Income Recognized - No Allowance Recorded	18,559	3,993	35,916
Interest Income Recognized For Cash Payments Received - No Allowance Recorded	18,559	3,993	35,916
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	16,923,039		16,923,039	12,322,746
Unpaid Principal Balance - Allowance Recorded	18,400,023		18,400,023	13,838,755
Related Allowance - Allowance Recorded	5,480,762		5,480,762	5,008,822
Average Recorded Investment - Allowance Recorded	12,693,484	15,043,921	10,485,004
Interest Income Recognized - Allowance Recorded	2,186	38,617	4,744
Interest Income Recognized For Cash Payments Received - Allowance Recorded	2,186	38,617	4,744
Total Impaired Loans/Leases:
Recorded Investment	27,297,215		27,297,215	19,080,420
Unpaid Principal Balance	29,162,062		29,162,062	20,895,958
Related Allowance	5,480,762		5,480,762	5,008,822
Average Recorded Investment	22,348,656	24,670,197	19,273,367
Interest Income Recognized	20,745	42,610	40,660
Interest Income Recognized For Cash Payments Received	20,745	42,610	40,660
Commercial and Industrial [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	560,005		560,005	492,622
Unpaid Principal Balance - No Allowance Recorded	667,983		667,983	568,951
Average Recorded Investment - No Allowance Recorded	621,836	834,405	647,016
Interest Income Recognized - No Allowance Recorded	17,855	1,950	19,754
Interest Income Recognized For Cash Payments Received - No Allowance Recorded	17,855	1,950	19,754
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	7,698,676		7,698,676	1,269,228
Unpaid Principal Balance - Allowance Recorded	8,464,069		8,464,069	1,956,755
Related Allowance - Allowance Recorded	2,204,926		2,204,926	927,453
Average Recorded Investment - Allowance Recorded	3,454,429	1,913,841	1,702,548
Interest Income Recognized - Allowance Recorded		9,340
Interest Income Recognized For Cash Payments Received - Allowance Recorded		9,340
Total Impaired Loans/Leases:
Recorded Investment	8,258,681		8,258,681	1,761,850
Unpaid Principal Balance	9,132,052		9,132,052	2,525,706
Related Allowance	2,204,926		2,204,926	927,453
Average Recorded Investment	4,076,265	2,748,246	2,349,564
Interest Income Recognized	17,855	11,290	19,754
Interest Income Recognized For Cash Payments Received	17,855	11,290	19,754
Owner-Occupied Commercial Real Estate [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	760,586		760,586	392,542
Unpaid Principal Balance - No Allowance Recorded	873,808		873,808	392,542
Average Recorded Investment - No Allowance Recorded	751,191	2,295,969	536,402
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	439,701		439,701	159,247
Unpaid Principal Balance - Allowance Recorded	439,701		439,701	159,247
Related Allowance - Allowance Recorded	143,453		143,453	67,498
Average Recorded Investment - Allowance Recorded	439,701	1,181,798	282,878
Total Impaired Loans/Leases:
Recorded Investment	1,200,287		1,200,287	551,789
Unpaid Principal Balance	1,313,509		1,313,509	551,789
Related Allowance	143,453		143,453	67,498
Average Recorded Investment	1,190,892	3,477,767	819,280
Commercial Construction, Land Development, and Other Land [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	1,385,356		1,385,356	1,943,168
Unpaid Principal Balance - No Allowance Recorded	1,496,556		1,496,556	2,054,368
Average Recorded Investment - No Allowance Recorded	1,397,733	1,943,718	1,615,643
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	794,703		794,703	888,547
Unpaid Principal Balance - Allowance Recorded	806,703		806,703	1,011,747
Related Allowance - Allowance Recorded	457,086		457,086	503,825
Average Recorded Investment - Allowance Recorded	796,194	1,897,759	801,643
Interest Income Recognized - Allowance Recorded		1,992
Interest Income Recognized For Cash Payments Received - Allowance Recorded		1,992
Total Impaired Loans/Leases:
Recorded Investment	2,180,059		2,180,059	2,831,715
Unpaid Principal Balance	2,303,259		2,303,259	3,066,115
Related Allowance	457,086		457,086	503,825
Average Recorded Investment	2,193,927	3,841,477	2,417,286
Interest Income Recognized		1,992
Interest Income Recognized For Cash Payments Received		1,992
Non-Owner Occupied Commercial Real Estate [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	4,989,393		4,989,393	1,790,279
Unpaid Principal Balance - No Allowance Recorded	5,044,816		5,044,816	1,902,279
Average Recorded Investment - No Allowance Recorded	4,051,261	1,739,053	3,169,784
Interest Income Recognized - No Allowance Recorded		354	13,283
Interest Income Recognized For Cash Payments Received - No Allowance Recorded		354	13,283
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	6,061,267		6,061,267	7,783,132
Unpaid Principal Balance - Allowance Recorded	6,760,858		6,760,858	8,488,414
Related Allowance - Allowance Recorded	1,872,961		1,872,961	2,603,381
Average Recorded Investment - Allowance Recorded	6,034,473	8,893,535	5,971,713
Interest Income Recognized - Allowance Recorded		26,484
Interest Income Recognized For Cash Payments Received - Allowance Recorded		26,484
Total Impaired Loans/Leases:
Recorded Investment	11,050,660		11,050,660	9,573,411
Unpaid Principal Balance	11,805,674		11,805,674	10,390,693
Related Allowance	1,872,961		1,872,961	2,603,381
Average Recorded Investment	10,085,734	10,632,588	9,141,497
Interest Income Recognized		26,838	13,283
Interest Income Recognized For Cash Payments Received		26,838	13,283
Finance Leases Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	1,109,844		1,109,844	557,469
Unpaid Principal Balance - No Allowance Recorded	1,109,884		1,109,884	557,469
Average Recorded Investment - No Allowance Recorded	1,152,456	527,153	966,959
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	559,873		559,873	336,989
Unpaid Principal Balance - Allowance Recorded	559,873		559,873	336,989
Related Allowance - Allowance Recorded	165,617		165,617	192,847
Average Recorded Investment - Allowance Recorded	578,317	172,428	425,472
Total Impaired Loans/Leases:
Recorded Investment	1,669,717		1,669,717	894,458
Unpaid Principal Balance	1,669,757		1,669,757	894,458
Related Allowance	165,617		165,617	192,847
Average Recorded Investment	1,730,773	699,581	1,392,431
Residential Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	1,113,535		1,113,535	1,071,927
Unpaid Principal Balance - No Allowance Recorded	1,113,535		1,113,535	1,071,927
Average Recorded Investment - No Allowance Recorded	564,278	561,752	1,332,539
Interest Income Recognized - No Allowance Recorded	1,296	801	2,879
Interest Income Recognized For Cash Payments Received - No Allowance Recorded	1,296	801	2,879
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	546,187		546,187	1,044,820
Unpaid Principal Balance - Allowance Recorded	546,187		546,187	1,044,820
Related Allowance - Allowance Recorded	129,859		129,859	246,266
Average Recorded Investment - Allowance Recorded	1,186,197	1,273,943	520,782
Interest Income Recognized - Allowance Recorded	704		2,074
Interest Income Recognized For Cash Payments Received - Allowance Recorded	704		2,074
Total Impaired Loans/Leases:
Recorded Investment	1,659,722		1,659,722	2,116,747
Unpaid Principal Balance	1,659,722		1,659,722	2,116,747
Related Allowance	129,859		129,859	246,266
Average Recorded Investment	1,750,475	1,835,695	1,853,321
Interest Income Recognized	2,000	801	4,953
Interest Income Recognized For Cash Payments Received	2,000	801	4,953
Consumer Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded Investment - No Allowance Recorded	455,457		455,457	509,667
Unpaid Principal Balance - No Allowance Recorded	455,457		455,457	509,667
Average Recorded Investment - No Allowance Recorded	494,498	1,012,035	520,020
Interest Income Recognized - No Allowance Recorded		1,689
Interest Income Recognized For Cash Payments Received - No Allowance Recorded		1,689
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded Investment - Allowance Recorded	822,632		822,632	840,783
Unpaid Principal Balance - Allowance Recorded	822,632		822,632	840,783
Related Allowance - Allowance Recorded	506,860		506,860	467,552
Average Recorded Investment - Allowance Recorded	826,092	422,808	779,968
Interest Income Recognized - Allowance Recorded	890		2,670
Interest Income Recognized For Cash Payments Received - Allowance Recorded	890		2,670
Total Impaired Loans/Leases:
Recorded Investment	1,278,089		1,278,089	1,350,450
Unpaid Principal Balance	1,278,089		1,278,089	1,350,450
Related Allowance	506,860		506,860	467,552
Average Recorded Investment	1,320,590	1,434,843	1,299,988
Interest Income Recognized	890	1,689	2,670
Interest Income Recognized For Cash Payments Received	$ 890	$ 1,689

XML

Note 6 - Fair Value (Tables)

9 Months Ended

Sep. 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)
September 30, 2014:
Securities available for sale:
U.S. govt. sponsored agency securities	$	306,004,605	$	-	$	306,004,605	$	-
Residential mortgage-backed and related securities		127,779,749		-		127,779,749		-
Municipal securities		31,260,146		-		31,260,146		-
Other securities		1,900,067		317,021		1,583,046		-
Derivative instruments		1,848,119		-		1,848,119		-
	$	468,792,686	$	317,021	$	468,475,665	$	-
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
September 30, 2014:
Impaired loans/leases	$	13,616,631	$	-	$	-	$	13,616,631
Other real estate owned		11,534,235		-		-		11,534,235
	$	25,150,866	$	-	$	-	$	25,150,866
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
September 30, 2014:
Impaired loans/leases	$	13,616,631	Appraisal of collateral	Appraisal adjustments	-10.00% to -50.00%
Other real estate owned		11,534,235	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 September 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	$	42,326,177	$	42,326,177	$	41,950,790	$	41,950,790
Federal funds sold	Level 2		29,760,000		29,760,000		39,435,000		39,435,000
Interest-bearing deposits at financial institutions	Level 2		34,631,773		34,631,773		33,044,917		33,044,917
Investment securities:
Held to maturity	Level 3		185,840,139		185,936,051		145,451,895		138,640,105
Available for sale	See Previous Table		466,944,567		466,944,567		551,758,458		551,758,458
Loans/leases receivable, net	Level 3		12,607,992		13,616,631		8,342,182		9,009,557
Loans/leases receivable, net	Level 2		1,537,493,236		1,544,453,008		1,430,489,328		1,441,952,443
Derivative instruments	Level 2		1,848,119		1,848,119		-		-
Deposits:
Nonmaturity deposits	Level 2		1,298,921,913		1,298,921,913		1,256,209,352		1,256,209,352
Time deposits	Level 2		414,945,479		416,050,000		390,781,891		391,923,000
Short-term borrowings	Level 2		162,186,698		162,186,698		149,292,967		149,292,967
Federal Home Loan Bank advances	Level 2		196,500,000		202,507,000		231,350,000		241,623,000
Other borrowings	Level 2		151,455,209		160,531,000		142,448,362		152,761,000
Junior subordinated debentures	Level 2		40,389,809		28,457,573		40,289,830		28,094,228

XML

Note 3 - Loans/Leases Receivable (Details) - Impaired Loans/Leases - Three Months Ending (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	$ 9,655,172	$ 9,626,276	$ 8,788,363
Interest Income Recognized - No Allownace Recorded	18,559	3,993	35,916
Interest Income Recognized for Cahs Payments Received - No Allownace Recorded	18,559	3,993	35,916
Average Recorded Investment - Allowance Recorded	12,693,484	15,043,921	10,485,004
Interest Income Recognized - Allowance Recorded	2,186	38,617	4,744
Interest Income Recognized for Cahs Payments Received - Allowance Recorded	2,186	38,617	4,744
Total Impaired Loans/Leases:
Average Recorded Investment	22,348,656	24,670,197	19,273,367
Interest Income Recognized	20,745	42,610	40,660
Interest Income Recognized for Cahs Payments Received	20,745	42,610	40,660
Commercial and Industrial [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	621,836	834,405	647,016
Interest Income Recognized - No Allownace Recorded	17,855	1,950	19,754
Interest Income Recognized for Cahs Payments Received - No Allownace Recorded	17,855	1,950	19,754
Average Recorded Investment - Allowance Recorded	3,454,429	1,913,841	1,702,548
Interest Income Recognized - Allowance Recorded		9,340
Interest Income Recognized for Cahs Payments Received - Allowance Recorded		9,340
Total Impaired Loans/Leases:
Average Recorded Investment	4,076,265	2,748,246	2,349,564
Interest Income Recognized	17,855	11,290	19,754
Interest Income Recognized for Cahs Payments Received	17,855	11,290	19,754
Owner-Occupied Commercial Real Estate [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	751,191	2,295,969	536,402
Average Recorded Investment - Allowance Recorded	439,701	1,181,798	282,878
Total Impaired Loans/Leases:
Average Recorded Investment	1,190,892	3,477,767	819,280
Commercial Construction, Land Development, and Other Land [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	1,397,733	1,943,718	1,615,643
Average Recorded Investment - Allowance Recorded	796,194	1,897,759	801,643
Interest Income Recognized - Allowance Recorded		1,992
Interest Income Recognized for Cahs Payments Received - Allowance Recorded		1,992
Total Impaired Loans/Leases:
Average Recorded Investment	2,193,927	3,841,477	2,417,286
Interest Income Recognized		1,992
Interest Income Recognized for Cahs Payments Received		1,992
Non-Owner Occupied Commercial Real Estate [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	4,051,261	1,739,053	3,169,784
Interest Income Recognized - No Allownace Recorded		354	13,283
Interest Income Recognized for Cahs Payments Received - No Allownace Recorded		354	13,283
Average Recorded Investment - Allowance Recorded	6,034,473	8,893,535	5,971,713
Interest Income Recognized - Allowance Recorded		26,484
Interest Income Recognized for Cahs Payments Received - Allowance Recorded		26,484
Total Impaired Loans/Leases:
Average Recorded Investment	10,085,734	10,632,588	9,141,497
Interest Income Recognized		26,838	13,283
Interest Income Recognized for Cahs Payments Received		26,838	13,283
Finance Leases Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	1,152,456	527,153	966,959
Average Recorded Investment - Allowance Recorded	578,317	172,428	425,472
Total Impaired Loans/Leases:
Average Recorded Investment	1,730,773	699,581	1,392,431
Residential Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	564,278	561,752	1,332,539
Interest Income Recognized - No Allownace Recorded	1,296	801	2,879
Interest Income Recognized for Cahs Payments Received - No Allownace Recorded	1,296	801	2,879
Average Recorded Investment - Allowance Recorded	1,186,197	1,273,943	520,782
Interest Income Recognized - Allowance Recorded	704		2,074
Interest Income Recognized for Cahs Payments Received - Allowance Recorded	704		2,074
Total Impaired Loans/Leases:
Average Recorded Investment	1,750,475	1,835,695	1,853,321
Interest Income Recognized	2,000	801	4,953
Interest Income Recognized for Cahs Payments Received	2,000	801	4,953
Consumer Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Average Recorded Investment - No Allownace Recorded	494,498	1,012,035	520,020
Interest Income Recognized - No Allownace Recorded		1,689
Interest Income Recognized for Cahs Payments Received - No Allownace Recorded		1,689
Average Recorded Investment - Allowance Recorded	826,092	422,808	779,968
Interest Income Recognized - Allowance Recorded	890		2,670
Interest Income Recognized for Cahs Payments Received - Allowance Recorded	890		2,670
Total Impaired Loans/Leases:
Average Recorded Investment	1,320,590	1,434,843	1,299,988
Interest Income Recognized	890	1,689	2,670
Interest Income Recognized for Cahs Payments Received	$ 890	$ 1,689

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Note 2 - Investment Securities (Details) (USD $)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Note 2 - Investment Securities (Details) [Line Items]
Number of Securities	505	505
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions				241
Aggregate Depreciation From Amortized Cost Basis, Percent		3.00%
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year	190	190
Available-for-sale Securities	$ 466,944,567	$ 466,944,567		$ 551,758,458
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	185,840,139	185,840,139		145,451,895
Number of Issuers	272	272		269
Municipal Bonds [Member] | General Obligation Bonds [Member]
Note 2 - Investment Securities (Details) [Line Items]
Other Investments	63,200,000	63,200,000		54,200,000
Municipal Bonds [Member] | Revenue Bonds [Member]
Note 2 - Investment Securities (Details) [Line Items]
Other Investments	153,000,000	153,000,000		119,300,000
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
Debt Securities [Member]
Note 2 - Investment Securities (Details) [Line Items]
Other than Temporary Impairment Losses, Investments	0	0	0
US States and Political Subdivisions Debt Securities [Member]
Note 2 - Investment Securities (Details) [Line Items]
Available-for-sale Securities	31,260,146	31,260,146		35,958,857
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	184,790,139	184,790,139		144,401,895
Aggregate Fair Value Exceeding $5 Million [Member] | General Obligation Bonds [Member]
Note 2 - Investment Securities (Details) [Line Items]
Number of States Investments Held In	3	3		2
Aggregate Fair Value Exceeding $5 Million [Member] | Revenue Bonds [Member]
Note 2 - Investment Securities (Details) [Line Items]
Number of States Investments Held In	4	4		4
General Obligation Bonds [Member] | Minimum [Member]
Note 2 - Investment Securities (Details) [Line Items]
Other Investments	5,000,000	5,000,000		5,000,000
General Obligation Bonds [Member]
Note 2 - Investment Securities (Details) [Line Items]
Number of States Investments Held In	19	19		20
Revenue Bonds [Member] | Minimum [Member]
Note 2 - Investment Securities (Details) [Line Items]
Other Investments	$ 5,000,000	$ 5,000,000		$ 5,000,000
Revenue Bonds [Member]
Note 2 - Investment Securities (Details) [Line Items]
Number of States Investments Held In	8	8		8

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Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013		Sep. 30, 2014		Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 3,811,944		$ 11,959,716		$ 11,122,319
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			2,092,992		1,995,829
Provision for loan/lease losses	1,366,984		3,159,364		3,944,903
Stock-based compensation expense			703,274		619,506
Deferred compensation expense accrued			996,941		623,781
Losses on other real estate owned, net			114,109		566,714
Amortization of premiums on securities, net			1,470,641		2,862,396
Securities gains			(40,625)		(433,396)
Loans originated for sale			(32,643,486)		(70,569,738)
Proceeds on sales of loans			33,537,484		76,372,739
Gains on sales of residential real estate loans			(317,085)		(722,368)
Gains on sales of government guaranteed portions of loans			(860,923)		(1,949,300)
Amortization of core deposit intangible			149,634		129,003
Accretion of acquisition fair value adjustments, net			(549,604)		(592,620)
Gain on the sale of premises and equipment			(42,554)
Increase in cash value of bank-owned life insurance			(1,276,901)		(1,328,598)
Bargain purchase gain on Community National acquisition					(1,841,385)
Decrease (increase) in other assets			(595,429)		7,319,681
Increase in other liabilities			687,445		2,553,307
Net cash provided by operating activities			18,544,993		30,672,773
CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease (increase) in federal funds sold			9,675,000		(9,297,000)
Net decrease (increase) in interest-bearing deposits at financial institutions			(1,586,856)		8,521,233
Proceeds from sales of other real estate owned			1,172,365		662,586
Purchase of derivative instruments			(2,071,650)
Activity in securities portfolio:
Purchases			(48,493,532)		(297,033,410)
Calls, maturities and redemptions			30,827,423		138,661,369
Paydowns			19,147,455		38,967,219
Sales			65,754,467		37,393,047
Activity in restricted investment securities:
Purchases			(1,653,450)		(6,184,250)
Redemptions			3,377,900		7,243,400
Net increase in loans/leases originated and held for investment			(115,589,620)		(65,747,455)
Net cash received from the sale of premises and equipment			291,006
Purchase of premises and equipment			(1,587,828)		(1,597,434)
Net cash received from Community National acquisition					3,025,073
Net cash used in investing activities			(40,737,320)		(145,385,622)
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposit accounts			66,893,213		112,711,191
Net increase (decrease) in short-term borrowings			12,893,731		(1,823,399)
Activity in Federal Home Loan Bank advances:
Advances			17,000,000		163,000,000
Calls and maturities			(51,850,000)		(160,000,000)
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			(1,964,607)		(2,853,434)
Cash and due from banks, beginning			41,950,790		61,568,446
Cash and due from banks, ending	58,724,270		42,326,177		58,724,270
Supplemental disclosure of cash flow information, cash payments for:
Interest			12,445,044		13,546,215
Income/franchise taxes			3,457,500		1,371,120
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			8,894,623		(14,746,038)
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			2,237,268		5,220,235
Change in due to broker			9,750,000
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
Series F Noncumulative Perpetual Preferred Stock Redemption One [Member]
Activity in Federal Home Loan Bank advances:
Redemption of shares of preferred stock, value			(15,000,000)
Series F Noncumulative Perpetual Preferred Stock Redemption Two[Member]
Activity in Federal Home Loan Bank advances:
Redemption of shares of preferred stock, value			(14,823,922)
Common Stock [Member]
Activity in Federal Home Loan Bank advances:
Proceeds from issuance of common stock, net			419,299		384,315
Net cash provided by financing activities			22,567,714		111,868,673
Net increase (decrease) in cash and due from banks			$ 375,387		$ (2,844,176)

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

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Consolidated Balance Sheets (Unaudited) (Parentheticals) (USD $)	Sep. 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	8,058,059	8,005,708
Common stock, shares outstanding	7,936,813	7,884,462
Treasury Stock, shares	121,246	121,246

XML

Accounting Policies, by Policy (Policies)

9 Months Ended

Sep. 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 September 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, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 and is not expected to have a significant impact 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.

In August 2014, FASB issued ASU 2014-14, Classification of Certain Government-Guaranteed Mortgage Loans Upon Foreclosure. ASU 2014-14 requires creditors to reclassify loans that are within the scope of the ASU to “other receivables” upon foreclosure, rather than reclassifying them as other real estate owned. The most common types of government guaranteed loans include those guaranteed by the Federal Housing Authority (FHA), U.S. Department of Housing and Urban Development (HUD), U.S. Department of Veterans Affairs (VA) and the U.S. Small Business Administration (SBA). The separate other receivable recorded upon foreclosure is to be measured based on the amount of the loan balance (principal and interest) the creditor expects to recover from the guarantor. ASU 2014-14 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014 and is not expected to have a significant impact on the Company’s consolidated financial statements.

Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

Allowance for estimated losses on loans/leases: The Company has certain loans risk-rated 7 (substandard), which are not classified as impaired based on the facts of the credit.  For these non-impaired and risk-rated 7 loans, the Company does not provide a general allowance as it does for all other non-impaired loans. Rather, the Company performs a more precise analysis including evaluation of the cash flow and collateral valuation for each individual credit.  A specific allowance is established based upon this evaluation. These non-impaired risk-rated 7 loans exist primarily in the commercial and industrial and commercial real estate segments.

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.

XML

Document And Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 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		7,942,188
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	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3

XML

Note 2 - Investment Securities (Tables)

9 Months Ended

Sep. 30, 2014

Note 2 - Investment Securities (Tables) [Line Items]

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

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		(Losses)			Value
September 30, 2014
Securities held to maturity:
Municipal securities	$	184,790,139	$	1,861,338	$	(1,765,426	)	$	184,886,051
Other securities		1,050,000		-		-			1,050,000
	$	185,840,139	$	1,861,338	$	(1,765,426	)	$	185,936,051
Securities available for sale:
U.S. govt. sponsored agency securities	$	315,019,934	$	30,913	$	(9,046,242	)	$	306,004,605
Residential mortgage-backed and related securities		127,822,284		1,372,274		(1,414,809	)		127,779,749
Municipal securities		30,209,955		1,149,656		(99,465	)		31,260,146
Other securities		1,354,116		545,951		-			1,900,067
	$	474,406,289	$	3,098,794	$	(10,560,516	)	$	466,944,567
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
September 30, 2014:
Securities held to maturity:
Municipal securities	$	29,794,026	$	(633,024	)	$	43,172,941	$	(1,132,402	)	$	72,966,967	$	(1,765,426	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	32,208,945	$	(156,930	)	$	262,773,625	$	(8,889,312	)	$	294,982,570	$	(9,046,242	)
Residential mortgage-backed and related securities		10,125,288		(74,264	)		58,008,272		(1,340,545	)		68,133,560		(1,414,809	)
Municipal securities		1,446,532		(3,113	)		5,616,381		(96,352	)		7,062,913		(99,465	)
	$	43,780,765	$	(234,307	)	$	326,398,278	$	(10,326,209	)	$	370,179,043	$	(10,560,516	)
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						Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
Proceeds from sales of securities	$	39,876,889		$	31,225,516		$	65,754,467		$	37,393,047
Pre-tax gross gains from sales of securities		357,934			506,611			379,130			523,071
Pre-tax gross losses from sales of securities		(338,505	)		(89,675	)		(338,505	)		(89,675	)

Investments Classified by Contractual Maturity Date [Table Text Block]

	Amortized Cost		Fair Value
Securities held to maturity:
Due in one year or less	$	12,682,406	$	12,683,453
Due after one year through five years		16,825,667		16,856,667
Due after five years		156,332,066		156,395,931
	$	185,840,139	$	185,936,051
Securities available for sale:
Due in one year or less	$	3,649,998	$	3,664,418
Due after one year through five years		60,972,541		60,242,076
Due after five years		280,607,350		273,358,257
	$	345,229,889	$	337,264,751
Residential mortgage-backed and related securities		127,822,284		127,779,749
Other securities		1,354,116		1,900,067
	$	474,406,289	$	466,944,567

	Amortized Cost		Fair Value
Securities held to maturity:
Municipal securities	$	99,883,698	$	100,074,857
Securities available for sale:
U.S. govt. sponsored agency securities		250,617,040		243,092,527
Municipal securities		18,473,306		18,985,950
	$	269,090,346	$	262,078,477

Bonds [Member]

Note 2 - Investment Securities (Tables) [Line Items]

Schedule of Debt [Table Text Block]

September 30, 2014:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Illinois		32	$	23,058,258	$	23,431,499	$	732,234
Iowa		25		16,557,625		16,746,965		669,879
Missouri		12		6,136,797		6,097,169		508,097
Other		52		16,674,720		16,908,510		325,164
Total general obligation bonds		121	$	62,427,400	$	63,184,143	$	522,183

December 31, 2013:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		30	$	17,946,059	$	17,444,045	$	581,468
Illinois		36		15,063,325		15,264,718		424,020
Other		67		22,166,026		21,512,582		321,083
Total general obligation bonds		133	$	55,175,410	$	54,221,345	$	407,679

September 30, 2014:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		37	$	59,955,899	$	60,603,053	$	1,637,920
Missouri		65		54,016,464		53,997,386		830,729
Indiana		12		17,991,200		17,835,277		1,486,273
Kansas		6		12,310,134		12,139,318		2,023,220
Other		31		8,298,997		8,387,020		270,549
Total revenue bonds		151	$	152,572,694	$	152,962,054	$	1,012,994

December 31, 2013:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		31	$	47,903,572	$	46,257,997	$	1,492,193
Missouri		57		42,085,249		40,054,613		702,713
Indiana		8		15,020,000		14,324,717		1,790,590
Kansas		5		11,022,382		9,997,068		1,999,414
Other		35		9,009,148		8,693,222		248,378
Total revenue bonds		136	$	125,040,351	$	119,327,617	$	877,409

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net income	$ 4,062,665	$ 3,811,944	$ 11,959,716	$ 11,122,319
Unrealized losses on securities available for sale:
Unrealized holding losses arising during the period before tax	(1,455,231)	(800,796)	14,691,007	(23,395,367)
Less reclassification adjustment for gains included in net income before tax	19,429	416,936	40,625	433,396
	(1,474,660)	(1,217,732)	14,650,382	(23,828,763)
Unrealized gain on derivative instruments	98,724		(152,425)
Other comprehensive loss, before tax	(1,375,936)	(1,217,732)	14,497,957	(23,828,763)
Tax benefit	(563,761)	(399,541)	5,603,334	(9,082,725)
Other comprehensive loss, net of tax	(812,175)	(818,191)	8,894,623	(14,746,038)
Comprehensive income attributable to QCR Holdings, Inc.	$ 3,250,490	$ 2,993,753	$ 20,854,339	$ (3,623,719)

XML

Note 4 - Earnings Per Share

9 Months Ended

Sep. 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				Nine months ended
	September 30,				September 30,
	2014		2013		2014		2013
Net income	$	4,062,665	$	3,811,944	$	11,959,716	$	11,122,319
Less: Preferred stock dividends		-		810,837		1,081,877		2,432,512
Net income attributable to QCR Holdings, Inc. common stockholders	$	4,062,665	$	3,001,107	$	10,877,839	$	8,689,807
Earnings per common share attributable to QCR Holdings, Inc. common stockholders
Basic	$	0.51	$	0.52	$	1.37	$	1.62
Diluted	$	0.50	$	0.51	$	1.35	$	1.59
Weighted average common shares outstanding*		7,931,944		5,806,019		7,919,201		5,375,557
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan		122,041		109,260		121,217		106,741
Weighted average common and common equivalent shares outstanding		8,053,985		5,915,279		8,040,418		5,482,298

*On December 23, 2013, the Company converted $25.0 million of its outstanding shares of Series E Preferred Stock to common stock, which resulted in the issuance of 2,057,502 shares of common stock.

XML

Note 3 - Loans/Leases Receivable

9 Months Ended

Sep. 30, 2014

Receivables [Abstract]

Financing Receivables [Text Block]

NOTE 3 – LOANS/LEASES RECEIVABLE

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

	As of September 30,			As of December 31,
	2014			2013
Commercial and industrial loans	$	479,747,059		$	431,688,129
Commercial real estate loans
Owner-occupied commercial real estate		251,076,360			261,215,912
Commercial construction, land development, and other land		69,856,024			57,844,902
Other non owner-occupied commercial real estate		376,795,649			352,692,115
		697,728,033			671,752,929
Direct financing leases *		162,476,079			128,901,442
Residential real estate loans **		154,954,020			147,356,323
Installment and other consumer loans		71,760,173			76,033,810
		1,566,665,364			1,455,732,633
Plus deferred loan/lease origination costs, net of fees		6,203,781			4,546,925
		1,572,869,145			1,460,279,558
Less allowance for estimated losses on loans/leases		(22,767,917	)		(21,448,048	)
	$	1,550,101,228		$	1,438,831,510
* Direct financing leases:
Net minimum lease payments to be received	$	184,475,603		$	145,662,254
Estimated unguaranteed residual values of leased assets		1,538,482			1,694,499
Unearned lease/residual income		(23,538,006	)		(18,455,311	)
		162,476,079			128,901,442
Plus deferred lease origination costs, net of fees		6,339,575			4,814,183
		168,815,654			133,715,625
Less allowance for estimated losses on leases		(3,106,887	)		(2,517,217	)
	$	165,708,767		$	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 nine months ended September 30, 2014 and 2013.

**Includes residential real estate loans held for sale totaling $1,642,300 and $1,358,290 as of September 30, 2014, and December 31, 2013, respectively. 

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

	As of September 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	$	470,898,126		$	638,002		$	284,380		$	-		$	7,926,551		$	479,747,059
Commercial Real Estate
Owner-Occupied Commercial Real Estate		249,903,102			-			-			-			1,173,258			251,076,360
Commercial Construction, Land Development, and Other Land		68,732,309			510,364			-			-			613,351			69,856,024
Other Non Owner-Occupied Commercial Real Estate		363,737,989			266,956			25,543			-			12,765,161			376,795,649
Direct Financing Leases		159,714,653			699,590			392,119			-			1,669,717			162,476,079
Residential Real Estate		153,145,275			49,543			382,281			51,094			1,325,827			154,954,020
Installment and Other Consumer		70,404,267			284,429			203,591			4,312			863,574			71,760,173
	$	1,536,535,721		$	2,448,884		$	1,287,914		$	55,406		$	26,337,439		$	1,566,665,364
As a percentage of total loan/lease portfolio		98.08	%		0.16	%		0.08	%		0.00	%		1.68	%		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 September 30, 2014 and December 31, 2013 are presented as follows:

	As of September 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	$	-	$	7,926,551	$	1,437,974	$	9,364,525		32.83	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		-		1,173,258		-		1,173,258		4.11	%
Commercial Construction, Land Development, and Other Land		-		613,351		-		613,351		2.15	%
Other Non Owner-Occupied Commercial Real Estate		-		12,765,161		-		12,765,161		44.76	%
Direct Financing Leases		-		1,669,717		-		1,669,717		5.85	%
Residential Real Estate		51,094		1,325,827		333,895		1,710,816		6.00	%
Installment and Other Consumer		4,312		863,574		357,000		1,224,886		4.29	%
	$	55,406	$	26,337,439	$	2,128,869	$	28,521,714		100.00	%

*Nonaccrual loans/leases includes $9,620,674 of troubled debt restructurings, including $81,043 in commercial and industrial loans, $8,768,590 in commercial real estate loans, $64,144 in direct financing leases, $515,827 in residential real estate loans, and $191,070 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 nine months ended September 30, 2014 and 2013, respectively, are presented as follows:

	Three Months Ended September 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	6,549,378		$	10,277,692		$	3,319,131		$	1,439,185		$	1,481,638		$	23,067,024
Provisions (credits) charged to expense		851,542			(196,865	)		509,657			(53,963	)		(47,048	)		1,063,323
Loans/leases charged off		(741,127	)		(120,505	)		(741,478	)		(42,022	)		(86,370	)		(1,731,502	)
Recoveries on loans/leases previously charged off		254,265			68,346			19,577			9,870			17,014			369,072
Balance, ending	$	6,914,058		$	10,028,668		$	3,106,887		$	1,353,070		$	1,365,234		$	22,767,917

	Three Months Ended September 30, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	4,790,828		$	12,190,497		$	2,187,605		$	1,165,341		$	822,108		$	21,156,379
Provisions (credits) charged to expense		765,582			88,761			338,984			102,523			71,134			1,366,984
Loans/leases charged off		(214,920	)		(443,721	)		(203,724	)		(13,599	)		(51,673	)		(927,637	)
Recoveries on loans/leases previously charged off		26,034			375,325			644			13,240			51,420			466,663
Balance, ending	$	5,367,524		$	12,210,862		$	2,323,509		$	1,267,505		$	892,989		$	22,062,389

	Nine Months Ended September 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		1,930,050			(460,356	)		1,428,678			42,712			218,280			3,159,364
Loans/leases charged off		(967,207	)		(436,056	)		(885,966	)		(95,464	)		(102,107	)		(2,486,800	)
Recoveries on loans/leases previously charged off		302,441			219,646			46,958			9,973			68,287			647,305
Balance, ending	$	6,914,058		$	10,028,668		$	3,106,887		$	1,353,070		$	1,365,234		$	22,767,917

	Nine Months Ended September 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		1,026,073			1,875,132			1,057,744			307,196			(321,242	)		3,944,903
Loans/leases charged off		(253,820	)		(1,264,446	)		(726,395	)		(126,490	)		(192,160	)		(2,563,311	)
Recoveries on loans/leases previously charged off		63,726			530,674			1,765			16,471			142,957			755,593
Balance, ending	$	5,367,524		$	12,210,862		$	2,323,509		$	1,267,505		$	892,989		$	22,062,389

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

	As of September 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	2,204,926		$	2,473,500		$	165,617		$	129,859		$	506,860		$	5,480,762
Allowance for nonimpaired loans/leases		4,709,132			7,555,168			2,941,270			1,223,211			858,374			17,287,155
	$	6,914,058		$	10,028,668		$	3,106,887		$	1,353,070		$	1,365,234		$	22,767,917
Impaired loans/leases	$	8,258,681		$	14,431,006		$	1,669,717		$	1,659,722		$	1,278,089		$	27,297,215
Nonimpaired loans/leases		471,488,378			683,297,027			160,806,362			153,294,298			70,482,084			1,539,368,149
	$	479,747,059		$	697,728,033		$	162,476,079		$	154,954,020		$	71,760,173		$	1,566,665,364
Allowance as a percentage of impaired loans/leases		26.70	%		17.14	%		9.92	%		7.82	%		39.66	%		20.08	%
Allowance as a percentage nonimpaired loans/leases		1.00	%		1.11	%		1.83	%		0.80	%		1.22	%		1.12	%
		1.44	%		1.44	%		1.91	%		0.87	%		1.90	%		1.45	%

	As of December 31, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	927,453		$	3,174,704		$	192,847		$	246,266		$	467,552		$	5,008,822
Allowance for nonimpaired loans/leases		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
Impaired loans/leases	$	1,761,850		$	12,956,915		$	894,458		$	2,116,747		$	1,350,450		$	19,080,420
Nonimpaired loans/leases		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 impaired loans/leases		52.64	%		24.50	%		21.56	%		11.63	%		34.62	%		26.25	%
Allowance as a percentage nonimpaired loans/leases		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 nine months ended September 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	$	560,005	$	667,983	$	-	$	647,016	$	19,754	$	19,754
Commercial Real Estate
Owner-Occupied Commercial Real Estate		760,586		873,808		-		536,402		-		-
Commercial Construction, Land Development, and Other Land		1,385,356		1,496,556		-		1,615,643		-		-
Other Non Owner-Occupied Commercial Real Estate		4,989,393		5,044,816		-		3,169,784		13,283		13,283
Direct Financing Leases		1,109,844		1,109,884		-		966,959		-		-
Residential Real Estate		1,113,535		1,113,535		-		1,332,539		2,879		2,879
Installment and Other Consumer		455,457		455,457		-		520,020		-		-
	$	10,374,176	$	10,762,039	$	-	$	8,788,363	$	35,916	$	35,916
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	7,698,676	$	8,464,069	$	2,204,926	$	1,702,548	$	-	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		439,701		439,701		143,453		282,878		-		-
Commercial Construction, Land Development, and Other Land		794,703		806,703		457,086		801,643		-		-
Other Non Owner-Occupied Commercial Real Estate		6,061,267		6,760,858		1,872,961		5,971,713		-		-
Direct Financing Leases		559,873		559,873		165,617		425,472		-		-
Residential Real Estate		546,187		546,187		129,859		520,782		2,074		2,074
Installment and Other Consumer		822,632		822,632		506,860		779,968		2,670		2,670
	$	16,923,039	$	18,400,023	$	5,480,762	$	10,485,004	$	4,744	$	4,744
Total Impaired Loans/Leases:
Commercial and Industrial	$	8,258,681	$	9,132,052	$	2,204,926	$	2,349,564	$	19,754	$	19,754
Commercial Real Estate
Owner-Occupied Commercial Real Estate		1,200,287		1,313,509		143,453		819,280		-		-
Commercial Construction, Land Development, and Other Land		2,180,059		2,303,259		457,086		2,417,286		-		-
Other Non Owner-Occupied Commercial Real Estate		11,050,660		11,805,674		1,872,961		9,141,497		13,283		13,283
Direct Financing Leases		1,669,717		1,669,757		165,617		1,392,431		-		-
Residential Real Estate		1,659,722		1,659,722		129,859		1,853,321		4,953		4,953
Installment and Other Consumer		1,278,089		1,278,089		506,860		1,299,988		2,670		-
	$	27,297,215	$	29,162,062	$	5,480,762	$	19,273,367	$	40,660	$	40,660

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 September 30, 2014 and 2013, respectively, are presented as follows:

	Three Months Ended September 30, 2014						Three Months Ended September 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	$	621,836	$	17,855	$	17,855	$	834,405	$	1,950	$	1,950
Commercial Real Estate						-
Owner-Occupied Commercial Real Estate		751,191		-		-		2,295,969		-		-
Commercial Construction, Land Development, and Other Land		1,397,733		-		-		1,943,718		-		-
Other Non Owner-Occupied Commercial Real Estate		4,051,261		-		-		1,739,053		354		354
Direct Financing Leases		1,152,456		-		-		527,153		-		-
Residential Real Estate		1,186,197		704		704		1,273,943		-		-
Installment and Other Consumer		494,498		-		-		1,012,035		1,689		1,689
	$	9,655,172	$	18,559	$	18,559	$	9,626,276	$	3,993	$	3,993
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	3,454,429	$	-	$	-	$	1,913,841	$	9,340	$	9,340
Commercial Real Estate						-
Owner-Occupied Commercial Real Estate		439,701		-		-		1,181,798		-		-
Commercial Construction, Land Development, and Other Land		796,194		-		-		1,897,759		1,992		1,992
Other Non Owner-Occupied Commercial Real Estate		6,034,473		-		-		8,893,535		26,484		26,484
Direct Financing Leases		578,317		-		-		172,428		-		-
Residential Real Estate		564,278		1,296		1,296		561,752		801		801
Installment and Other Consumer		826,092		890		890		422,808		-		-
	$	12,693,484	$	2,186	$	2,186	$	15,043,921	$	38,617	$	38,617
Total Impaired Loans/Leases:
Commercial and Industrial	$	4,076,265	$	17,855	$	17,855	$	2,748,246	$	11,290	$	11,290
Commercial Real Estate
Owner-Occupied Commercial Real Estate		1,190,892		-		-		3,477,767		-		-
Commercial Construction, Land Development, and Other Land		2,193,927		-		-		3,841,477		1,992		1,992
Other Non Owner-Occupied Commercial Real Estate		10,085,734		-		-		10,632,588		26,838		26,838
Direct Financing Leases		1,730,773		-		-		699,581		-		-
Residential Real Estate		1,750,475		2,000		2,000		1,835,695		801		801
Installment and Other Consumer		1,320,590		890		890		1,434,843		1,689		1,689
	$	22,348,656	$	20,745	$	20,745	$	24,670,197	$	42,610	$	42,610

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 September 30, 2014 and December 31, 2013:

	As of September 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)	$	448,093,142	$	241,429,419	$	66,448,462	$	349,173,522	$	1,105,144,545
Special Mention (Rating 6)		15,306,200		6,598,947		-		2,058,884		23,964,031
Substandard (Rating 7)		16,347,717		3,047,994		3,407,562		25,563,243		48,366,516
Doubtful (Rating 8)		-		-		-		-		-
	$	479,747,059	$	251,076,360	$	69,856,024	$	376,795,649	$	1,177,475,092

	As of September 30, 2014
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total
Performing	$	160,806,362	$	153,243,203	$	70,535,287	$	384,584,852
Nonperforming		1,669,717		1,710,817		1,224,886		4,605,420
	$	162,476,079	$	154,954,020	$	71,760,173	$	389,190,272

	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 September 30, 2014 and December 31, 2013, troubled debt restructurings totaled $11,749,543 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 nine months ended September 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 September 30, 2014								For the three months ended September 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 - Interest rate adjusted below market
Residential Real Estate		-	$	-	$	-	$	-		1	$	79,661	$	79,661	$	24,408
		-	$	-	$	-	$	-		1	$	79,661	$	79,661	$	24,408
CONCESSION - Extension of Maturity
Owner-Occupied Commercial Real Estate		-	$	-	$	-	$	-		1	$	61,517	$	61,517	$	-
Other Non Owner-Occupied Commercial Real Estate		-		-		-		-		7		6,637,835		6,637,835		1,518,303
		-	$	-	$	-	$	-		8	$	6,699,352	$	6,699,352	$	1,518,303
CONCESSION - Other
Residential Real Estate		1	$	96,439	$	71,760	$	7,125		-	$	-	$	-	$	-
		1	$	96,439	$	71,760	$	7,125		-	$	-	$	-	$	-
TOTAL		1	$	96,439	$	71,760	$	7,125		9	$	6,779,013	$	6,779,013	$	1,542,711

	For the nine months ended September 30, 2014								For the nine months ended September 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		-		-		-		-		2		240,288		240,288		24,408
		-	$	-	$	-	$	-		3	$	577,788	$	577,788	$	24,408
CONCESSION - Extension of maturity
Commercial and Industrial		-	$	-	$	-	$	-		3	$	809,494	$	809,494	$	188,700
Owner-Occupied Commercial Real Estate		-		-		-		-		1		61,517		61,517		-
Other Non Owner-Occupied Commercial Real Estate		-		-		-		-		7		6,637,835		6,637,835		1,518,303
Direct Financing Leases		1		70,144		70,144		24,246		-		-		-		-
		1	$	70,144	$	70,144	$	24,246		11	$	7,508,846	$	7,508,846	$	1,707,003
CONCESSION - Other
Commercial and Industrial		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
Residential Real Estate		1	$	96,439	$	71,760	$	7,125
		2	$	524,288	$	499,609	$	120,574		-	$	-	$	-	$	-
TOTAL		7	$	1,573,029	$	1,548,350	$	384,603		17	$	8,596,173	$	8,596,173	$	1,731,411

Of the troubled debt restructurings reported above, three with a post-modification recorded investment totaling $75,767 were on nonaccrual as of September 30, 2014, and ten with post-modification recorded investments totaling $6,087,296 were on nonaccrual as of September 30, 2013.

For the three and nine months ended September 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 8 - Derivatives and Hedging Activities (Tables)

9 Months Ended

Sep. 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	$	751,668
June 5, 2014	June 5, 2021	Other Assets		15,000,000	Cash Flow Hedging		1,096,451
			$	30,000,000		$	1,848,119

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

	Three Months Ended September 30, 2014			Nine Months Ended September 30, 2014
Unrealized loss at beginning of period	$	(251,149	)	$	-
Amount reclassified from accumulated other comprehensive income to noninterest income		(10,968	)		(10,968	)
Amount of gain (loss) recognized in other comprehensive income		109,692			(141,457	)
Unrealized loss at end of period	$	(152,425	)	$	(152,425	)

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Note 3 - Loans/Leases Receivable (Tables)

3 Months Ended

9 Months Ended

Sep. 30, 2014

Sep. 30, 2014

Receivables [Abstract]

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

	As of September 30,			As of December 31,
	2014			2013
Commercial and industrial loans	$	479,747,059		$	431,688,129
Commercial real estate loans
Owner-occupied commercial real estate		251,076,360			261,215,912
Commercial construction, land development, and other land		69,856,024			57,844,902
Other non owner-occupied commercial real estate		376,795,649			352,692,115
		697,728,033			671,752,929
Direct financing leases *		162,476,079			128,901,442
Residential real estate loans **		154,954,020			147,356,323
Installment and other consumer loans		71,760,173			76,033,810
		1,566,665,364			1,455,732,633
Plus deferred loan/lease origination costs, net of fees		6,203,781			4,546,925
		1,572,869,145			1,460,279,558
Less allowance for estimated losses on loans/leases		(22,767,917	)		(21,448,048	)
	$	1,550,101,228		$	1,438,831,510
* Direct financing leases:
Net minimum lease payments to be received	$	184,475,603		$	145,662,254
Estimated unguaranteed residual values of leased assets		1,538,482			1,694,499
Unearned lease/residual income		(23,538,006	)		(18,455,311	)
		162,476,079			128,901,442
Plus deferred lease origination costs, net of fees		6,339,575			4,814,183
		168,815,654			133,715,625
Less allowance for estimated losses on leases		(3,106,887	)		(2,517,217	)
	$	165,708,767		$	131,198,408

Past Due Financing Receivables [Table Text Block]

	As of September 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	$	470,898,126		$	638,002		$	284,380		$	-		$	7,926,551		$	479,747,059
Commercial Real Estate
Owner-Occupied Commercial Real Estate		249,903,102			-			-			-			1,173,258			251,076,360
Commercial Construction, Land Development, and Other Land		68,732,309			510,364			-			-			613,351			69,856,024
Other Non Owner-Occupied Commercial Real Estate		363,737,989			266,956			25,543			-			12,765,161			376,795,649
Direct Financing Leases		159,714,653			699,590			392,119			-			1,669,717			162,476,079
Residential Real Estate		153,145,275			49,543			382,281			51,094			1,325,827			154,954,020
Installment and Other Consumer		70,404,267			284,429			203,591			4,312			863,574			71,760,173
	$	1,536,535,721		$	2,448,884		$	1,287,914		$	55,406		$	26,337,439		$	1,566,665,364
As a percentage of total loan/lease portfolio		98.08	%		0.16	%		0.08	%		0.00	%		1.68	%		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 September 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	$	-	$	7,926,551	$	1,437,974	$	9,364,525		32.83	%
Commercial Real Estate
Owner-Occupied Commercial Real Estate		-		1,173,258		-		1,173,258		4.11	%
Commercial Construction, Land Development, and Other Land		-		613,351		-		613,351		2.15	%
Other Non Owner-Occupied Commercial Real Estate		-		12,765,161		-		12,765,161		44.76	%
Direct Financing Leases		-		1,669,717		-		1,669,717		5.85	%
Residential Real Estate		51,094		1,325,827		333,895		1,710,816		6.00	%
Installment and Other Consumer		4,312		863,574		357,000		1,224,886		4.29	%
	$	55,406	$	26,337,439	$	2,128,869	$	28,521,714		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 September 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	6,549,378		$	10,277,692		$	3,319,131		$	1,439,185		$	1,481,638		$	23,067,024
Provisions (credits) charged to expense		851,542			(196,865	)		509,657			(53,963	)		(47,048	)		1,063,323
Loans/leases charged off		(741,127	)		(120,505	)		(741,478	)		(42,022	)		(86,370	)		(1,731,502	)
Recoveries on loans/leases previously charged off		254,265			68,346			19,577			9,870			17,014			369,072
Balance, ending	$	6,914,058		$	10,028,668		$	3,106,887		$	1,353,070		$	1,365,234		$	22,767,917

	Three Months Ended September 30, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	4,790,828		$	12,190,497		$	2,187,605		$	1,165,341		$	822,108		$	21,156,379
Provisions (credits) charged to expense		765,582			88,761			338,984			102,523			71,134			1,366,984
Loans/leases charged off		(214,920	)		(443,721	)		(203,724	)		(13,599	)		(51,673	)		(927,637	)
Recoveries on loans/leases previously charged off		26,034			375,325			644			13,240			51,420			466,663
Balance, ending	$	5,367,524		$	12,210,862		$	2,323,509		$	1,267,505		$	892,989		$	22,062,389

	Nine Months Ended September 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		1,930,050			(460,356	)		1,428,678			42,712			218,280			3,159,364
Loans/leases charged off		(967,207	)		(436,056	)		(885,966	)		(95,464	)		(102,107	)		(2,486,800	)
Recoveries on loans/leases previously charged off		302,441			219,646			46,958			9,973			68,287			647,305
Balance, ending	$	6,914,058		$	10,028,668		$	3,106,887		$	1,353,070		$	1,365,234		$	22,767,917

	Nine Months Ended September 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		1,026,073			1,875,132			1,057,744			307,196			(321,242	)		3,944,903
Loans/leases charged off		(253,820	)		(1,264,446	)		(726,395	)		(126,490	)		(192,160	)		(2,563,311	)
Recoveries on loans/leases previously charged off		63,726			530,674			1,765			16,471			142,957			755,593
Balance, ending	$	5,367,524		$	12,210,862		$	2,323,509		$	1,267,505		$	892,989		$	22,062,389

	As of September 30, 2014
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	2,204,926		$	2,473,500		$	165,617		$	129,859		$	506,860		$	5,480,762
Allowance for nonimpaired loans/leases		4,709,132			7,555,168			2,941,270			1,223,211			858,374			17,287,155
	$	6,914,058		$	10,028,668		$	3,106,887		$	1,353,070		$	1,365,234		$	22,767,917
Impaired loans/leases	$	8,258,681		$	14,431,006		$	1,669,717		$	1,659,722		$	1,278,089		$	27,297,215
Nonimpaired loans/leases		471,488,378			683,297,027			160,806,362			153,294,298			70,482,084			1,539,368,149
	$	479,747,059		$	697,728,033		$	162,476,079		$	154,954,020		$	71,760,173		$	1,566,665,364
Allowance as a percentage of impaired loans/leases		26.70	%		17.14	%		9.92	%		7.82	%		39.66	%		20.08	%
Allowance as a percentage nonimpaired loans/leases		1.00	%		1.11	%		1.83	%		0.80	%		1.22	%		1.12	%
		1.44	%		1.44	%		1.91	%		0.87	%		1.90	%		1.45	%

	As of December 31, 2013
	Commercial and Industrial			Commercial Real Estate			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	927,453		$	3,174,704		$	192,847		$	246,266		$	467,552		$	5,008,822
Allowance for nonimpaired loans/leases		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
Impaired loans/leases	$	1,761,850		$	12,956,915		$	894,458		$	2,116,747		$	1,350,450		$	19,080,420
Nonimpaired loans/leases		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 impaired loans/leases		52.64	%		24.50	%		21.56	%		11.63	%		34.62	%		26.25	%
Allowance as a percentage nonimpaired loans/leases		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 September 30, 2014						Three Months Ended September 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	$	621,836	$	17,855	$	17,855	$	834,405	$	1,950	$	1,950
Commercial Real Estate						-
Owner-Occupied Commercial Real Estate		751,191		-		-		2,295,969		-		-
Commercial Construction, Land Development, and Other Land		1,397,733		-		-		1,943,718		-		-
Other Non Owner-Occupied Commercial Real Estate		4,051,261		-		-		1,739,053		354		354
Direct Financing Leases		1,152,456		-		-		527,153		-		-
Residential Real Estate		1,186,197		704		704		1,273,943		-		-
Installment and Other Consumer		494,498		-		-		1,012,035		1,689		1,689
	$	9,655,172	$	18,559	$	18,559	$	9,626,276	$	3,993	$	3,993
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	3,454,429	$	-	$	-	$	1,913,841	$	9,340	$	9,340
Commercial Real Estate						-
Owner-Occupied Commercial Real Estate		439,701		-		-		1,181,798		-		-
Commercial Construction, Land Development, and Other Land		796,194		-		-		1,897,759		1,992		1,992
Other Non Owner-Occupied Commercial Real Estate		6,034,473		-		-		8,893,535		26,484		26,484
Direct Financing Leases		578,317		-		-		172,428		-		-
Residential Real Estate		564,278		1,296		1,296		561,752		801		801
Installment and Other Consumer		826,092		890		890		422,808		-		-
	$	12,693,484	$	2,186	$	2,186	$	15,043,921	$	38,617	$	38,617
Total Impaired Loans/Leases:
Commercial and Industrial	$	4,076,265	$	17,855	$	17,855	$	2,748,246	$	11,290	$	11,290
Commercial Real Estate
Owner-Occupied Commercial Real Estate		1,190,892		-		-		3,477,767		-		-
Commercial Construction, Land Development, and Other Land		2,193,927		-		-		3,841,477		1,992		1,992
Other Non Owner-Occupied Commercial Real Estate		10,085,734		-		-		10,632,588		26,838		26,838
Direct Financing Leases		1,730,773		-		-		699,581		-		-
Residential Real Estate		1,750,475		2,000		2,000		1,835,695		801		801
Installment and Other Consumer		1,320,590		890		890		1,434,843		1,689		1,689
	$	22,348,656	$	20,745	$	20,745	$	24,670,197	$	42,610	$	42,610

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	$	560,005	$	667,983	$	-	$	647,016	$	19,754	$	19,754
Commercial Real Estate
Owner-Occupied Commercial Real Estate		760,586		873,808		-		536,402		-		-
Commercial Construction, Land Development, and Other Land		1,385,356		1,496,556		-		1,615,643		-		-
Other Non Owner-Occupied Commercial Real Estate		4,989,393		5,044,816		-		3,169,784		13,283		13,283
Direct Financing Leases		1,109,844		1,109,884		-		966,959		-		-
Residential Real Estate		1,113,535		1,113,535		-		1,332,539		2,879		2,879
Installment and Other Consumer		455,457		455,457		-		520,020		-		-
	$	10,374,176	$	10,762,039	$	-	$	8,788,363	$	35,916	$	35,916
Impaired Loans/Leases with Specific Allowance Recorded:
Commercial and Industrial	$	7,698,676	$	8,464,069	$	2,204,926	$	1,702,548	$	-	$	-
Commercial Real Estate
Owner-Occupied Commercial Real Estate		439,701		439,701		143,453		282,878		-		-
Commercial Construction, Land Development, and Other Land		794,703		806,703		457,086		801,643		-		-
Other Non Owner-Occupied Commercial Real Estate		6,061,267		6,760,858		1,872,961		5,971,713		-		-
Direct Financing Leases		559,873		559,873		165,617		425,472		-		-
Residential Real Estate		546,187		546,187		129,859		520,782		2,074		2,074
Installment and Other Consumer		822,632		822,632		506,860		779,968		2,670		2,670
	$	16,923,039	$	18,400,023	$	5,480,762	$	10,485,004	$	4,744	$	4,744
Total Impaired Loans/Leases:
Commercial and Industrial	$	8,258,681	$	9,132,052	$	2,204,926	$	2,349,564	$	19,754	$	19,754
Commercial Real Estate
Owner-Occupied Commercial Real Estate		1,200,287		1,313,509		143,453		819,280		-		-
Commercial Construction, Land Development, and Other Land		2,180,059		2,303,259		457,086		2,417,286		-		-
Other Non Owner-Occupied Commercial Real Estate		11,050,660		11,805,674		1,872,961		9,141,497		13,283		13,283
Direct Financing Leases		1,669,717		1,669,757		165,617		1,392,431		-		-
Residential Real Estate		1,659,722		1,659,722		129,859		1,853,321		4,953		4,953
Installment and Other Consumer		1,278,089		1,278,089		506,860		1,299,988		2,670		-
	$	27,297,215	$	29,162,062	$	5,480,762	$	19,273,367	$	40,660	$	40,660

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 September 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)	$	448,093,142	$	241,429,419	$	66,448,462	$	349,173,522	$	1,105,144,545
Special Mention (Rating 6)		15,306,200		6,598,947		-		2,058,884		23,964,031
Substandard (Rating 7)		16,347,717		3,047,994		3,407,562		25,563,243		48,366,516
Doubtful (Rating 8)		-		-		-		-		-
	$	479,747,059	$	251,076,360	$	69,856,024	$	376,795,649	$	1,177,475,092

	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 September 30, 2014
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total
Performing	$	160,806,362	$	153,243,203	$	70,535,287	$	384,584,852
Nonperforming		1,669,717		1,710,817		1,224,886		4,605,420
	$	162,476,079	$	154,954,020	$	71,760,173	$	389,190,272

	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 September 30, 2014								For the three months ended September 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 - Interest rate adjusted below market
Residential Real Estate		-	$	-	$	-	$	-		1	$	79,661	$	79,661	$	24,408
		-	$	-	$	-	$	-		1	$	79,661	$	79,661	$	24,408
CONCESSION - Extension of Maturity
Owner-Occupied Commercial Real Estate		-	$	-	$	-	$	-		1	$	61,517	$	61,517	$	-
Other Non Owner-Occupied Commercial Real Estate		-		-		-		-		7		6,637,835		6,637,835		1,518,303
		-	$	-	$	-	$	-		8	$	6,699,352	$	6,699,352	$	1,518,303
CONCESSION - Other
Residential Real Estate		1	$	96,439	$	71,760	$	7,125		-	$	-	$	-	$	-
		1	$	96,439	$	71,760	$	7,125		-	$	-	$	-	$	-
TOTAL		1	$	96,439	$	71,760	$	7,125		9	$	6,779,013	$	6,779,013	$	1,542,711

	For the nine months ended September 30, 2014								For the nine months ended September 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		-		-		-		-		2		240,288		240,288		24,408
		-	$	-	$	-	$	-		3	$	577,788	$	577,788	$	24,408
CONCESSION - Extension of maturity
Commercial and Industrial		-	$	-	$	-	$	-		3	$	809,494	$	809,494	$	188,700
Owner-Occupied Commercial Real Estate		-		-		-		-		1		61,517		61,517		-
Other Non Owner-Occupied Commercial Real Estate		-		-		-		-		7		6,637,835		6,637,835		1,518,303
Direct Financing Leases		1		70,144		70,144		24,246		-		-		-		-
		1	$	70,144	$	70,144	$	24,246		11	$	7,508,846	$	7,508,846	$	1,707,003
CONCESSION - Other
Commercial and Industrial		1	$	427,849	$	427,849	$	113,449		-	$	-	$	-	$	-
Residential Real Estate		1	$	96,439	$	71,760	$	7,125
		2	$	524,288	$	499,609	$	120,574		-	$	-	$	-	$	-
TOTAL		7	$	1,573,029	$	1,548,350	$	384,603		17	$	8,596,173	$	8,596,173	$	1,731,411

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Note 7 - Full Redemption of Series F Preferred STock

9 Months Ended

Sep. 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 5 - Business Segment Information

9 Months Ended

Sep. 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 nine months ended September 30, 2014 and 2013.

	Commercial Banking
			Cedar
	Quad City		Rapids		Rockford		Wealth					Intercompany			Consolidated
	Bank & Trust		Bank & Trust		Bank & Trust		Management		All Other			Eliminations			Total
Three Months Ended September 30, 2014
Total revenue	$	12,467,712	$	8,801,737	$	3,595,245	$	2,082,609	$	5,526,296		$	(5,609,315	)	$	26,864,284
Net interest income	$	9,234,089	$	6,179,763	$	2,584,613	$	-	$	(523,134	)	$	-		$	17,475,331
Net income	$	2,602,238	$	1,861,236	$	669,814	$	358,997	$	4,062,665		$	(5,492,285	)	$	4,062,665
Total assets	$	1,274,033,270	$	822,348,680	$	346,791,265	$	-	$	212,236,225		$	(204,813,887	)	$	2,450,595,553
Provision for loan/lease losses	$	609,657	$	331,666	$	122,000	$	-	$	-		$	-		$	1,063,323
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,720,799	$	-	$	-	$	-		$	-		$	1,720,799
Three Months Ended September 30, 2013
Total revenue	$	12,610,738	$	10,006,670	$	3,457,684	$	1,946,795	$	5,398,152		$	(5,489,143	)	$	27,930,896
Net interest income	$	8,494,707	$	6,883,007	$	2,421,255	$	-	$	(488,633	)	$	-		$	17,310,336
Net income	$	2,541,293	$	1,941,807	$	445,521	$	458,813	$	3,811,944		$	(5,387,434	)	$	3,811,944
Total assets	$	1,248,417,915	$	927,667,522	$	333,804,180	$	-	$	214,875,126		$	(239,050,305	)	$	2,485,714,438
Provision for loan/lease losses	$	674,984	$	580,000	$	112,000	$	-	$	-		$	-		$	1,366,984
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	3,311,073	$	-	$	-	$	-		$	-		$	3,311,073
Nine Months Ended September 30, 2014
Total revenue	$	36,368,665	$	25,816,115	$	10,779,962	$	6,387,215	$	16,016,503		$	(16,272,535	)	$	79,095,925
Net interest income	$	27,235,902	$	17,820,878	$	7,637,029	$	-	$	(1,403,894	)	$	-		$	51,289,915
Net income	$	7,397,943	$	5,577,993	$	1,755,117	$	1,205,204	$	11,959,716		$	(15,936,257	)	$	11,959,716
Total assets	$	1,274,033,270	$	822,348,680	$	346,791,265	$	-	$	212,236,225		$	(204,813,887	)	$	2,450,595,553
Provision for loan/lease losses	$	1,779,698	$	881,666	$	498,000	$	-	$	-		$	-		$	3,159,364
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,720,799	$	-	$	-	$	-		$	-		$	1,720,799
Nine Months Ended September 30, 2013
Total revenue	$	36,476,985	$	24,911,543	$	10,291,554	$	5,488,081	$	16,570,031		$	(14,977,630	)	$	78,760,564
Net interest income	$	25,371,337	$	15,905,288	$	7,160,723	$	-	$	(1,227,643	)	$	-		$	47,209,705
Net income	$	6,989,589	$	5,430,289	$	1,261,243	$	1,000,558	$	11,122,319		$	(14,681,679	)	$	11,122,319
Total assets	$	1,248,417,915	$	927,667,522	$	333,804,180	$	-	$	214,875,126		$	(239,050,305	)	$	2,485,714,438
Provision for loan/lease losses	$	2,052,889	$	980,014	$	912,000	$	-	$	-		$	-		$	3,944,903
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	3,311,073	$	-	$	-	$	-		$	-		$	3,311,073

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Note 6 - Fair Value

9 Months Ended

Sep. 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 September 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)
September 30, 2014:
Securities available for sale:
U.S. govt. sponsored agency securities	$	306,004,605	$	-	$	306,004,605	$	-
Residential mortgage-backed and related securities		127,779,749		-		127,779,749		-
Municipal securities		31,260,146		-		31,260,146		-
Other securities		1,900,067		317,021		1,583,046		-
Derivative instruments		1,848,119		-		1,848,119		-
	$	468,792,686	$	317,021	$	468,475,665	$	-
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 nine months ended September 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 September 30, 2014 and December 31, 2013:

			Fair Value Measurements at Reporting Date Using
	Fair Value		Level 1		Level 2		Level 3
September 30, 2014:
Impaired loans/leases	$	13,616,631	$	-	$	-	$	13,616,631
Other real estate owned		11,534,235		-		-		11,534,235
	$	25,150,866	$	-	$	-	$	25,150,866
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
September 30, 2014:
Impaired loans/leases	$	13,616,631	Appraisal of collateral	Appraisal adjustments	-10.00% to -50.00%
Other real estate owned		11,534,235	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 nine months ended September 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 September 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	$	42,326,177	$	42,326,177	$	41,950,790	$	41,950,790
Federal funds sold	Level 2		29,760,000		29,760,000		39,435,000		39,435,000
Interest-bearing deposits at financial institutions	Level 2		34,631,773		34,631,773		33,044,917		33,044,917
Investment securities:
Held to maturity	Level 3		185,840,139		185,936,051		145,451,895		138,640,105
Available for sale	See Previous Table		466,944,567		466,944,567		551,758,458		551,758,458
Loans/leases receivable, net	Level 3		12,607,992		13,616,631		8,342,182		9,009,557
Loans/leases receivable, net	Level 2		1,537,493,236		1,544,453,008		1,430,489,328		1,441,952,443
Derivative instruments	Level 2		1,848,119		1,848,119		-		-
Deposits:
Nonmaturity deposits	Level 2		1,298,921,913		1,298,921,913		1,256,209,352		1,256,209,352
Time deposits	Level 2		414,945,479		416,050,000		390,781,891		391,923,000
Short-term borrowings	Level 2		162,186,698		162,186,698		149,292,967		149,292,967
Federal Home Loan Bank advances	Level 2		196,500,000		202,507,000		231,350,000		241,623,000
Other borrowings	Level 2		151,455,209		160,531,000		142,448,362		152,761,000
Junior subordinated debentures	Level 2		40,389,809		28,457,573		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.

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Note 8 - Derivatives and Hedging Activities

9 Months Ended

Sep. 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 advance 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 September 30, 2014. An initial premium of $2.1 million was paid for the two caps. The fair value of these instruments 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	$	751,668
June 5, 2014	June 5, 2021	Other Assets		15,000,000	Cash Flow Hedging		1,096,451
			$	30,000,000		$	1,848,119

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 Months Ended September 30, 2014			Nine Months Ended September 30, 2014
Unrealized loss at beginning of period	$	(251,149	)	$	-
Amount reclassified from accumulated other comprehensive income to noninterest income		(10,968	)		(10,968	)
Amount of gain (loss) recognized in other comprehensive income		109,692			(141,457	)
Unrealized loss at end of period	$	(152,425	)	$	(152,425	)

Changes in the fair value related to the ineffective portion of cash flow hedges, are reported in noninterest income during the period of the change. As shown in the table above, $10,968 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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Note 3 - Loans/Leases Receivable (Details) - Allowance for Estimated Losses on Loans/Leases (USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2014		Sep. 30, 2013	Sep. 30, 2014		Sep. 30, 2013	Dec. 31, 2013
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	$ 23,067,024		$ 21,156,379	$ 21,448,048		$ 19,925,204
Provisions charged to expense	1,063,323		1,366,984	3,159,364		3,944,903
Loans/leases charged off	(1,731,502)		(927,637)	(2,486,800)		(2,563,311)
Recoveries on loans/leases previously charged off	369,072		466,663	647,305		755,593
Balance, ending	22,767,917		22,062,389	22,767,917		22,062,389
Allowance for loans/leases individually evaluated for impairment	5,480,762			5,480,762			5,008,822
Allowance for loans/leases collectively evaluated for impairment	17,287,155			17,287,155			16,439,226
Allowance for loans/leases collectively and individually evaluated for impairment	22,767,917		22,062,389	22,767,917		22,062,389
Loans/leases individually evaluated for impairment	27,297,215			27,297,215			19,080,420
Loans/leases collectively evaluated for impairment	1,539,368,149			1,539,368,149			1,436,652,213
Loans/Leases individually and collectively evaluated for impairment	1,566,665,364			1,566,665,364			1,455,732,633
Allowance as a percentage of loans/leases individually evaluated for impairment	20.08%			20.08%			26.25%
Allowance as a percentage of loans/leases collectively evaluated for impairment	1.12%			1.12%			1.14%
Total allowancе as a pеrcеntagе of total loans/lеaеss	1.45%			1.45%			1.47%
Commercial and Industrial [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	6,549,378		4,790,828	5,648,774		4,531,545
Provisions charged to expense	851,542		765,582	1,930,050		1,026,073
Loans/leases charged off	(741,127)		(214,920)	(967,207)		(253,820)
Recoveries on loans/leases previously charged off	254,265		26,034	302,441		63,726
Balance, ending	6,914,058		5,367,524	6,914,058		5,367,524
Allowance for loans/leases individually evaluated for impairment	2,204,926			2,204,926			927,453
Allowance for loans/leases collectively evaluated for impairment	4,709,132			4,709,132			4,721,321
Allowance for loans/leases collectively and individually evaluated for impairment	6,914,058		5,367,524	6,914,058		5,367,524
Loans/leases individually evaluated for impairment	8,258,681			8,258,681			1,761,850
Loans/leases collectively evaluated for impairment	471,488,378			471,488,378			429,926,279
Loans/Leases individually and collectively evaluated for impairment	479,747,059			479,747,059			431,688,129
Allowance as a percentage of loans/leases individually evaluated for impairment	26.70%			26.70%			52.64%
Allowance as a percentage of loans/leases collectively evaluated for impairment	1.00%			1.00%			1.10%
Total allowancе as a pеrcеntagе of total loans/lеaеss	1.44%			1.44%			1.31%
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	10,277,692		12,190,497	10,705,434		11,069,502
Provisions charged to expense	(196,865)		88,761	(460,356)		1,875,132
Loans/leases charged off	(120,505)		(443,721)	(436,056)		(1,264,446)
Recoveries on loans/leases previously charged off	68,346		375,325	219,646		530,674
Balance, ending	10,028,668		12,210,862	10,028,668		12,210,862
Allowance for loans/leases individually evaluated for impairment	2,473,500			2,473,500			3,174,704
Allowance for loans/leases collectively evaluated for impairment	7,555,168			7,555,168			7,530,730
Allowance for loans/leases collectively and individually evaluated for impairment	10,028,668		12,210,862	10,028,668		12,210,862
Loans/leases individually evaluated for impairment	14,431,006			14,431,006			12,956,915
Loans/leases collectively evaluated for impairment	683,297,027			683,297,027			658,796,014
Loans/Leases individually and collectively evaluated for impairment	697,728,033			697,728,033			671,752,929
Allowance as a percentage of loans/leases individually evaluated for impairment	17.14%			17.14%			24.50%
Allowance as a percentage of loans/leases collectively evaluated for impairment	1.11%			1.11%			1.14%
Total allowancе as a pеrcеntagе of total loans/lеaеss	1.44%			1.44%			1.59%
Finance Leases Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	3,319,131		2,187,605	2,517,217	[1]	1,990,395
Provisions charged to expense	509,657		338,984	1,428,678		1,057,744
Loans/leases charged off	(741,478)		(203,724)	(885,966)		(726,395)
Recoveries on loans/leases previously charged off	19,577		644	46,958		1,765
Balance, ending	3,106,887	[1]	2,323,509	3,106,887	[1]	2,323,509
Allowance for loans/leases individually evaluated for impairment	165,617			165,617			192,847
Allowance for loans/leases collectively evaluated for impairment	2,941,270			2,941,270			2,324,370
Allowance for loans/leases collectively and individually evaluated for impairment	3,106,887	[1]	2,323,509	3,106,887	[1]	2,323,509
Loans/leases individually evaluated for impairment	1,669,717			1,669,717			894,458
Loans/leases collectively evaluated for impairment	160,806,362			160,806,362			128,006,984
Loans/Leases individually and collectively evaluated for impairment	162,476,079	[1]		162,476,079	[1]		128,901,442	[1]
Allowance as a percentage of loans/leases individually evaluated for impairment	9.92%			9.92%			21.56%
Allowance as a percentage of loans/leases collectively evaluated for impairment	1.83%			1.83%			1.82%
Total allowancе as a pеrcеntagе of total loans/lеaеss	1.91%			1.91%			1.95%
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	1,439,185		1,165,341	1,395,849		1,070,328
Provisions charged to expense	(53,963)		102,523	42,712		307,196
Loans/leases charged off	(42,022)		(13,599)	(95,464)		(126,490)
Recoveries on loans/leases previously charged off	9,870		13,240	9,973		16,471
Balance, ending	1,353,070		1,267,505	1,353,070		1,267,505
Allowance for loans/leases individually evaluated for impairment	129,859			129,859			246,266
Allowance for loans/leases collectively evaluated for impairment	1,223,211			1,223,211			1,149,583
Allowance for loans/leases collectively and individually evaluated for impairment	1,353,070		1,267,505	1,353,070		1,267,505
Loans/leases individually evaluated for impairment	1,659,722			1,659,722			2,116,747
Loans/leases collectively evaluated for impairment	153,294,298			153,294,298			145,239,576
Loans/Leases individually and collectively evaluated for impairment	154,954,020	[2]		154,954,020	[2]		147,356,323	[2]
Allowance as a percentage of loans/leases individually evaluated for impairment	7.82%			7.82%			11.63%
Allowance as a percentage of loans/leases collectively evaluated for impairment	0.80%			0.80%			0.79%
Total allowancе as a pеrcеntagе of total loans/lеaеss	0.87%			0.87%			0.95%
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance, beginning	1,481,638		822,108	1,180,774		1,263,434
Provisions charged to expense	(47,048)		71,134	218,280		(321,242)
Loans/leases charged off	(86,370)		(51,673)	(102,107)		(192,160)
Recoveries on loans/leases previously charged off	17,014		51,420	68,287		142,957
Balance, ending	1,365,234		892,989	1,365,234		892,989
Allowance for loans/leases individually evaluated for impairment	506,860			506,860			467,552
Allowance for loans/leases collectively evaluated for impairment	858,374			858,374			713,222
Allowance for loans/leases collectively and individually evaluated for impairment	1,365,234		892,989	1,365,234		892,989
Loans/leases individually evaluated for impairment	1,278,089			1,278,089			1,350,450
Loans/leases collectively evaluated for impairment	70,482,084			70,482,084			74,683,360
Loans/Leases individually and collectively evaluated for impairment	$ 71,760,173			$ 71,760,173			$ 76,033,810
Allowance as a percentage of loans/leases individually evaluated for impairment	39.66%			39.66%			34.62%
Allowance as a percentage of loans/leases collectively evaluated for impairment	1.22%			1.22%			0.95%
Total allowancе as a pеrcеntagе of total loans/lеaеss	1.90%			1.90%			1.55%

[1] 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 nine months ended September 30, 2014 and 2013.

[2] Includes residential real estate loans held for sale totaling $1,642,300 and $1,358,290 as of September 30, 2014, and December 31, 2013, respectively.

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Note 8 - Derivatives and Hedging Activities (Details) - Changes in Fair Values of Derivative Financial Instruments (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized loss at beginning of period	$ (251,149)
Amount of gain (loss) recognized in other comprehensive income	109,692	(141,457)
Unrealized loss at end of period	(152,425)	(152,425)
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amount reclassified from accumulated other comprehensive income to noninterest income	$ (10,968)	$ (10,968)

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Note 5 - Business Segment Information (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

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

	Commercial Banking
			Cedar
	Quad City		Rapids		Rockford		Wealth					Intercompany			Consolidated
	Bank & Trust		Bank & Trust		Bank & Trust		Management		All Other			Eliminations			Total
Three Months Ended September 30, 2014
Total revenue	$	12,467,712	$	8,801,737	$	3,595,245	$	2,082,609	$	5,526,296		$	(5,609,315	)	$	26,864,284
Net interest income	$	9,234,089	$	6,179,763	$	2,584,613	$	-	$	(523,134	)	$	-		$	17,475,331
Net income	$	2,602,238	$	1,861,236	$	669,814	$	358,997	$	4,062,665		$	(5,492,285	)	$	4,062,665
Total assets	$	1,274,033,270	$	822,348,680	$	346,791,265	$	-	$	212,236,225		$	(204,813,887	)	$	2,450,595,553
Provision for loan/lease losses	$	609,657	$	331,666	$	122,000	$	-	$	-		$	-		$	1,063,323
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,720,799	$	-	$	-	$	-		$	-		$	1,720,799
Three Months Ended September 30, 2013
Total revenue	$	12,610,738	$	10,006,670	$	3,457,684	$	1,946,795	$	5,398,152		$	(5,489,143	)	$	27,930,896
Net interest income	$	8,494,707	$	6,883,007	$	2,421,255	$	-	$	(488,633	)	$	-		$	17,310,336
Net income	$	2,541,293	$	1,941,807	$	445,521	$	458,813	$	3,811,944		$	(5,387,434	)	$	3,811,944
Total assets	$	1,248,417,915	$	927,667,522	$	333,804,180	$	-	$	214,875,126		$	(239,050,305	)	$	2,485,714,438
Provision for loan/lease losses	$	674,984	$	580,000	$	112,000	$	-	$	-		$	-		$	1,366,984
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	3,311,073	$	-	$	-	$	-		$	-		$	3,311,073
Nine Months Ended September 30, 2014
Total revenue	$	36,368,665	$	25,816,115	$	10,779,962	$	6,387,215	$	16,016,503		$	(16,272,535	)	$	79,095,925
Net interest income	$	27,235,902	$	17,820,878	$	7,637,029	$	-	$	(1,403,894	)	$	-		$	51,289,915
Net income	$	7,397,943	$	5,577,993	$	1,755,117	$	1,205,204	$	11,959,716		$	(15,936,257	)	$	11,959,716
Total assets	$	1,274,033,270	$	822,348,680	$	346,791,265	$	-	$	212,236,225		$	(204,813,887	)	$	2,450,595,553
Provision for loan/lease losses	$	1,779,698	$	881,666	$	498,000	$	-	$	-		$	-		$	3,159,364
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,720,799	$	-	$	-	$	-		$	-		$	1,720,799
Nine Months Ended September 30, 2013
Total revenue	$	36,476,985	$	24,911,543	$	10,291,554	$	5,488,081	$	16,570,031		$	(14,977,630	)	$	78,760,564
Net interest income	$	25,371,337	$	15,905,288	$	7,160,723	$	-	$	(1,227,643	)	$	-		$	47,209,705
Net income	$	6,989,589	$	5,430,289	$	1,261,243	$	1,000,558	$	11,122,319		$	(14,681,679	)	$	11,122,319
Total assets	$	1,248,417,915	$	927,667,522	$	333,804,180	$	-	$	214,875,126		$	(239,050,305	)	$	2,485,714,438
Provision for loan/lease losses	$	2,052,889	$	980,014	$	912,000	$	-	$	-		$	-		$	3,944,903
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	3,311,073	$	-	$	-	$	-		$	-		$	3,311,073

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Note 2 - Investment Securities (Details) - Gross Unrealized Losses and Fair Value of Securities in a Continuous Unrealized Loss Position (USD $)	Sep. 30, 2014	Dec. 31, 2013
Securities available for sale:
Available for Sale Securities less than 12 months fair value	$ 43,780,765	$ 441,808,604
Available for Sale Securities less than 12 months gross unrealized losses	(234,307)	(22,813,786)
Available for Sale Securities 12 months or more fair value	326,398,278	26,081,796
Available for Sale Securities 12 months or more gross unrealized losses	(10,326,209)	(1,941,536)
Available for Sale Securities fair value	370,179,043	467,890,400
Available for Sale Securities gross unrealized losses	(10,560,516)	(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	29,794,026	101,983,602
Held to Maturity Securities less than 12 months gross unrealized losses	(633,024)	(6,711,240)
Held to Maturity Securities 12 months or more fair value	43,172,941	2,697,375
Held to Maturity Securities 12 months or more gross unrealized losses	(1,132,402)	(400,339)
Held to Maturity Securities fair value	72,966,967	104,680,977
Held to Maturity Securities gross unrealized losses	(1,765,426)	(7,111,579)
Securities available for sale:
Available for Sale Securities less than 12 months fair value	1,446,532	13,890,692
Available for Sale Securities less than 12 months gross unrealized losses	(3,113)	(724,939)
Available for Sale Securities 12 months or more fair value	5,616,381	985,687
Available for Sale Securities 12 months or more gross unrealized losses	(96,352)	(53,385)
Available for Sale Securities fair value	7,062,913	14,876,379
Available for Sale Securities gross unrealized losses	(99,465)	(778,324)
US Government Agencies Debt Securities [Member]
Securities available for sale:
Available for Sale Securities less than 12 months fair value	32,208,945	333,194,820
Available for Sale Securities less than 12 months gross unrealized losses	(156,930)	(19,141,077)
Available for Sale Securities 12 months or more fair value	262,773,625	10,978,390
Available for Sale Securities 12 months or more gross unrealized losses	(8,889,312)	(1,001,764)
Available for Sale Securities fair value	294,982,570	344,173,210
Available for Sale Securities gross unrealized losses	(9,046,242)	(20,142,841)
Residential Mortgage Backed Securities [Member]
Securities available for sale:
Available for Sale Securities less than 12 months fair value	10,125,288	94,723,092
Available for Sale Securities less than 12 months gross unrealized losses	(74,264)	(2,947,770)
Available for Sale Securities 12 months or more fair value	58,008,272	14,117,719
Available for Sale Securities 12 months or more gross unrealized losses	(1,340,545)	(886,387)
Available for Sale Securities fair value	68,133,560	108,840,811
Available for Sale Securities gross unrealized losses	$ (1,414,809)	$ (3,834,157)

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Note 8 - Derivatives and Hedging Activities (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Jun. 30, 2014
Note 8 - Derivatives and Hedging Activities (Details) [Line Items]
Payments for Hedge, Investing Activities	$ 2,071,650
Noninterest Income [Member] | Cash Flow Hedging [Member]
Note 8 - Derivatives and Hedging Activities (Details) [Line Items]
Derivative Instruments, Gain Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing	10,968
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

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Note 3 - Loans/Leases Receivable (Details) - Troubled Debt Restructurings - Nine Months Ending (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Significant Payment Delay [Member] | Commercial and Industrial [Member]
CONCESSION - Significant payment delay
Number of loans/leases			3
Pre-modification recorded investment			$ 889,154
Post-modification recorded investment			889,154
Specific allowance			239,783
Significant Payment Delay [Member] | Owner-Occupied Commercial Real Estate [Member]
CONCESSION - Significant payment delay
Number of loans/leases				1
Pre-modification recorded investment				47,958
Post-modification recorded investment				47,958
Significant Payment Delay [Member] | Finance Leases Portfolio Segment [Member]
CONCESSION - Significant payment delay
Number of loans/leases			1
Pre-modification recorded investment			89,443
Post-modification recorded investment			89,443
Significant Payment Delay [Member] | Residential Portfolio Segment [Member]
CONCESSION - Significant payment delay
Number of loans/leases				1
Pre-modification recorded investment				91,581
Post-modification recorded investment				91,581
Significant Payment Delay [Member] | Installment and Other Consumer [Member]
CONCESSION - Significant payment delay
Number of loans/leases				1
Pre-modification recorded investment				370,000
Post-modification recorded investment				370,000
Significant Payment Delay [Member]
CONCESSION - Significant payment delay
Number of loans/leases			4	3
Pre-modification recorded investment			978,597	509,539
Post-modification recorded investment			978,597	509,539
Specific allowance			239,783
Interest Rate Adjusted Below Market [Member] | Residential Portfolio Segment [Member]
CONCESSION - Significant payment delay
Number of loans/leases		1		2
Pre-modification recorded investment		79,661		240,288
Post-modification recorded investment		79,661		240,288
Specific allowance		24,408		24,408
Interest Rate Adjusted Below Market [Member] | Commercial Construction, Land Development, and Other Land [Member]
CONCESSION - Significant payment delay
Number of loans/leases				1
Pre-modification recorded investment				337,500
Post-modification recorded investment				337,500
Interest Rate Adjusted Below Market [Member]
CONCESSION - Significant payment delay
Number of loans/leases		1		3
Pre-modification recorded investment		79,661		577,788
Post-modification recorded investment		79,661		577,788
Specific allowance		24,408		24,408
Extension of Maturity [Member] | Commercial and Industrial [Member]
CONCESSION - Significant payment delay
Number of loans/leases				3
Pre-modification recorded investment				809,494
Post-modification recorded investment				809,494
Specific allowance				188,700
Extension of Maturity [Member] | Owner-Occupied Commercial Real Estate [Member]
CONCESSION - Significant payment delay
Number of loans/leases		1		1
Pre-modification recorded investment		61,517		61,517
Post-modification recorded investment		61,517		61,517
Extension of Maturity [Member] | Finance Leases Portfolio Segment [Member]
CONCESSION - Significant payment delay
Number of loans/leases			1
Pre-modification recorded investment			70,144
Post-modification recorded investment			70,144
Specific allowance			24,246
Extension of Maturity [Member] | Non-Owner Occupied Commercial Real Estate [Member]
CONCESSION - Significant payment delay
Number of loans/leases		7		7
Pre-modification recorded investment		6,637,835		6,637,835
Post-modification recorded investment		6,637,835		6,637,835
Specific allowance		1,518,303		1,518,303
Extension of Maturity [Member]
CONCESSION - Significant payment delay
Number of loans/leases		8	1	11
Pre-modification recorded investment		6,699,352	70,144	7,508,846
Post-modification recorded investment		6,699,352	70,144	7,508,846
Specific allowance		1,518,303	24,246	1,707,003
All Other [Member] | Commercial and Industrial [Member]
CONCESSION - Significant payment delay
Number of loans/leases			1
Pre-modification recorded investment			427,849
Post-modification recorded investment			427,849
Specific allowance			113,449
All Other [Member] | Residential Portfolio Segment [Member]
CONCESSION - Significant payment delay
Number of loans/leases	1		1
Pre-modification recorded investment	96,439		96,439
Post-modification recorded investment	71,760		71,760
Specific allowance	7,125		7,125
All Other [Member]
CONCESSION - Significant payment delay
Number of loans/leases	1		2
Pre-modification recorded investment	96,439		524,288
Post-modification recorded investment	71,760		499,609
Specific allowance	7,125		120,574
Troubled Debt Restructurings [Member]
CONCESSION - Significant payment delay
Number of loans/leases	1	9	7	17
Pre-modification recorded investment	96,439	6,779,013	1,573,029	8,596,173
Post-modification recorded investment	71,760	6,779,013	1,548,350	8,596,173
Specific allowance	$ 7,125	$ 1,542,711	$ 384,603	$ 1,731,411

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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] Restricted Stock [Member] Exchange [Member]	Common Stock [Member] Exchange [Member]	Common Stock [Member]	Additional Paid-in Capital [Member] Restricted Stock [Member] Exchange [Member]	Additional Paid-in Capital [Member] Exchange [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Restricted Stock [Member] Exchange [Member]	Exchange [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											(810,837)					(810,837)
Proceeds from issuance of 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 shares of common stock as a result of stock options exercised							19,278			153,550						172,828
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 shares of common stock in connection with restricted stock vested, net						(7,048)	(16,798)		(111,628)	(289,113)					(118,676)	(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											(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 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 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 at Jun. 30, 2013				54,867			5,918,313			91,514,136	58,786,271	(9,221,164)	(1,606,510)			145,445,913
Net income											3,811,944					3,811,944
Other comprehensive income (loss), net of tax												(818,191)				(818,191)
Preferred cash dividends declared											(810,837)					(810,837)
Proceeds from issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan							5,973			65,116						71,089
Proceeds from issuance of shares of common stock as a result of stock options exercised							7,230			76,718						83,948
Stock compensation expense										163,585						163,585
Tax benefit of nonqualified stock options exercised										6,026						6,026
Restricted stock awards							332			(332)
Balance at Sep. 30, 2013				54,867			5,931,848			91,825,249	61,787,378	(10,039,355)	(1,606,510)			147,953,477
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											(708,008)					(708,008)
Redemption of shares of Series F Noncumulative Perpetual Preferred Stock	(15,000)	(14,985,000)	(15,000,000)
Proceeds from issuance of 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 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 shares of common stock in connection with restricted stock vested, net					(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
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											(373,869)					(373,869)
Redemption of shares of Series F Noncumulative Perpetual Preferred Stock	(14,867)	(14,809,055)	(14,823,922)
Proceeds from issuance of 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 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 at Jun. 30, 2014							8,049,889			60,999,044	71,137,294	(3,937,188)	(1,606,510)			134,642,529
Net income											4,062,665					4,062,665
Other comprehensive income (loss), net of tax												(812,175)				(812,175)
Proceeds from issuance of shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan							5,481			78,533						84,014
Proceeds from issuance of shares of common stock as a result of stock options exercised							2,400			19,097						21,497
Stock compensation expense										176,257						176,257
Tax benefit of nonqualified stock options exercised										5,189						5,189
Restricted stock awards							289			(289)
Balance at Sep. 30, 2014							$ 8,058,059			$ 61,277,831	$ 75,199,959	$ (4,749,363)	$ (1,606,510)			$ 138,179,976

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Note 2 - Investment Securities

9 Months Ended

Sep. 30, 2014

Investment Holdings [Abstract]

Investment Holdings [Text Block]

NOTE 2 – INVESTMENT SECURITIES

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

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		(Losses)			Value
September 30, 2014
Securities held to maturity:
Municipal securities	$	184,790,139	$	1,861,338	$	(1,765,426	)	$	184,886,051
Other securities		1,050,000		-		-			1,050,000
	$	185,840,139	$	1,861,338	$	(1,765,426	)	$	185,936,051
Securities available for sale:
U.S. govt. sponsored agency securities	$	315,019,934	$	30,913	$	(9,046,242	)	$	306,004,605
Residential mortgage-backed and related securities		127,822,284		1,372,274		(1,414,809	)		127,779,749
Municipal securities		30,209,955		1,149,656		(99,465	)		31,260,146
Other securities		1,354,116		545,951		-			1,900,067
	$	474,406,289	$	3,098,794	$	(10,560,516	)	$	466,944,567
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 September 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
September 30, 2014:
Securities held to maturity:
Municipal securities	$	29,794,026	$	(633,024	)	$	43,172,941	$	(1,132,402	)	$	72,966,967	$	(1,765,426	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	32,208,945	$	(156,930	)	$	262,773,625	$	(8,889,312	)	$	294,982,570	$	(9,046,242	)
Residential mortgage-backed and related securities		10,125,288		(74,264	)		58,008,272		(1,340,545	)		68,133,560		(1,414,809	)
Municipal securities		1,446,532		(3,113	)		5,616,381		(96,352	)		7,062,913		(99,465	)
	$	43,780,765	$	(234,307	)	$	326,398,278	$	(10,326,209	)	$	370,179,043	$	(10,560,516	)
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 September 30, 2014, the investment portfolio included 505 securities. Of this number, 241 securities had current unrealized losses with aggregate depreciation of less than 3% from the total amortized cost basis. Of these, 190 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 September 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 nine months ended September 30, 2014 and 2013. 

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

	Three Months Ended						Nine Months Ended
	September 30, 2014			September 30, 2013			September 30, 2014			September 30, 2013
Proceeds from sales of securities	$	39,876,889		$	31,225,516		$	65,754,467		$	37,393,047
Pre-tax gross gains from sales of securities		357,934			506,611			379,130			523,071
Pre-tax gross losses from sales of securities		(338,505	)		(89,675	)		(338,505	)		(89,675	)

The amortized cost and fair value of securities as of September 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	$	12,682,406	$	12,683,453
Due after one year through five years		16,825,667		16,856,667
Due after five years		156,332,066		156,395,931
	$	185,840,139	$	185,936,051
Securities available for sale:
Due in one year or less	$	3,649,998	$	3,664,418
Due after one year through five years		60,972,541		60,242,076
Due after five years		280,607,350		273,358,257
	$	345,229,889	$	337,264,751
Residential mortgage-backed and related securities		127,822,284		127,779,749
Other securities		1,354,116		1,900,067
	$	474,406,289	$	466,944,567

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	$	99,883,698	$	100,074,857
Securities available for sale:
U.S. govt. sponsored agency securities		250,617,040		243,092,527
Municipal securities		18,473,306		18,985,950
	$	269,090,346	$	262,078,477

The Company had available for sale municipal securities with a fair value of $31.3 million and $36.0 million as of September 30, 2014 and December 31, 2013, respectively. In addition, the Company had held to maturity municipal securities which were reported at amortized cost totaling $184.8 million and $144.4 million as of September 30, 2014 and December 31, 2013, respectively.

As of September 30, 2014, the Company’s municipal securities portfolios were comprised of general obligation bonds with fair values totaling $63.2 million and revenue bonds issued by 272 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $153.0 million. The Company held investments in general obligation bonds in 19 states, including three states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in eight states, including four states in which the aggregate fair value exceeded $5.0 million.

As of December 31, 2013, the Company’s municipal securities portfolios were comprised of general obligation bonds with fair values totaling $54.2 million and revenue bonds issued by 269 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $119.3 million. The Company held investments in general obligation bonds in 20 states, including two states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in eight states, including four states in which the aggregate fair value exceeded $5.0 million.

The amortized cost and fair values of the Company’s portfolio of general obligation bonds are summarized in the following tables by the issuer’s state:

September 30, 2014:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Illinois		32	$	23,058,258	$	23,431,499	$	732,234
Iowa		25		16,557,625		16,746,965		669,879
Missouri		12		6,136,797		6,097,169		508,097
Other		52		16,674,720		16,908,510		325,164
Total general obligation bonds		121	$	62,427,400	$	63,184,143	$	522,183

December 31, 2013:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		30	$	17,946,059	$	17,444,045	$	581,468
Illinois		36		15,063,325		15,264,718		424,020
Other		67		22,166,026		21,512,582		321,083
Total general obligation bonds		133	$	55,175,410	$	54,221,345	$	407,679

The general obligations bonds are diversified across many issuers. As of September 30, 2014 and December 31, 2013, the Company did not hold general obligation bonds of any single issuer, the aggregate book or market value of which exceeded 10% of the Company’s stockholders’ equity. Of the general obligation bonds in the Company’s portfolio, the majority are unrated bonds that represent small, private issuances. All unrated general obligation bonds were underwritten according to loan underwriting standards and have an average risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential services (water, sewer, education, medical facilities).

The amortized cost and fair values of the Company’s portfolio of revenue bonds are summarized in the following tables by the issuer’s state:

September 30, 2014:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		37	$	59,955,899	$	60,603,053	$	1,637,920
Missouri		65		54,016,464		53,997,386		830,729
Indiana		12		17,991,200		17,835,277		1,486,273
Kansas		6		12,310,134		12,139,318		2,023,220
Other		31		8,298,997		8,387,020		270,549
Total revenue bonds		151	$	152,572,694	$	152,962,054	$	1,012,994

December 31, 2013:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		31	$	47,903,572	$	46,257,997	$	1,492,193
Missouri		57		42,085,249		40,054,613		702,713
Indiana		8		15,020,000		14,324,717		1,790,590
Kansas		5		11,022,382		9,997,068		1,999,414
Other		35		9,009,148		8,693,222		248,378
Total revenue bonds		136	$	125,040,351	$	119,327,617	$	877,409

The revenue bonds are diversified across many issuers. As of September 30, 2014 and December 31, 2013, the Company did not hold revenue bonds of any single issuer, the aggregate book or market value of which exceeded 10% of the Company’s stockholders’ equity. Of the revenue bonds in the Company’s portfolio, the majority are unrated bonds that represent small, private issuances. All unrated revenue bonds were underwritten according to loan underwriting standards and have an average risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential services (water, sewer, education, medical facilities).

The Company’s municipal securities are owned by each of the three charters, whose investment policies set forth limits for various subcategories within the municipal securities portfolio. Each charter is monitored individually and as of September 30, 2014, all were well-within policy limitations approved by the board of directors. Policy limits are calculated as a percentage of total risk-based capital.

As of September 30, 2014, the Company’s regular monitoring of its municipal securities portfolio had not uncovered any facts or circumstances resulting in significantly different credits ratings than those assigned by a nationally recognized statistical rating organization, or in the case of unrated bonds, the rating assigned using the credit underwriting standards.

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Note 2 - Investment Securities (Details) - Sales of Securities (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Sales of Securities [Abstract]
Proceeds from sales of securities	$ 39,876,889	$ 31,225,516	$ 65,754,467	$ 37,393,047
Pre-tax gross gains from sales of securities	357,934	506,611	379,130	523,071
Pre-tax gross losses from sales of securities	$ (338,505)	$ (89,675)	$ (338,505)	$ (89,675)

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Note 3 - Loans/Leases Receivable (Details) - Loans By Credit Quality Indicators (USD $)	Sep. 30, 2014	Dec. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	$ 1,177,475,092	$ 1,103,441,058
Commercial and Industrial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	448,093,142	407,294,743
Commercial and Industrial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	15,306,200	11,355,713
Commercial and Industrial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	16,347,717	13,037,673
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	479,747,059	431,688,129
Owner-Occupied Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	241,429,419	250,028,731
Owner-Occupied Commercial Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	6,598,947	8,318,232
Owner-Occupied Commercial Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	3,047,994	2,868,949
Owner-Occupied Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	251,076,360	261,215,912
Commercial Construction, Land Development, and Other Land [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	66,448,462	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	3,407,562	4,387,897
Commercial Construction, Land Development, and Other Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	69,856,024	57,844,902
Non-Owner Occupied Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	349,173,522	326,168,882
Non-Owner Occupied Commercial Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	2,058,884	3,310,017
Non-Owner Occupied Commercial Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	25,563,243	23,213,216
Non-Owner Occupied Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	376,795,649	352,692,115
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	1,105,144,545	1,035,361,275
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	23,964,031	24,572,048
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Internally assigned risk rating	$ 48,366,516	$ 43,507,735

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Note 4 - Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

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

	Three months ended				Nine months ended
	September 30,				September 30,
	2014		2013		2014		2013
Net income	$	4,062,665	$	3,811,944	$	11,959,716	$	11,122,319
Less: Preferred stock dividends		-		810,837		1,081,877		2,432,512
Net income attributable to QCR Holdings, Inc. common stockholders	$	4,062,665	$	3,001,107	$	10,877,839	$	8,689,807
Earnings per common share attributable to QCR Holdings, Inc. common stockholders
Basic	$	0.51	$	0.52	$	1.37	$	1.62
Diluted	$	0.50	$	0.51	$	1.35	$	1.59
Weighted average common shares outstanding*		7,931,944		5,806,019		7,919,201		5,375,557
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan		122,041		109,260		121,217		106,741
Weighted average common and common equivalent shares outstanding		8,053,985		5,915,279		8,040,418		5,482,298