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 March 31, 2016

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

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 May 2, 2016, the Registrant had outstanding 11,823,268 shares of common stock, $1.00 par value per share. 

QCR HOLDINGS, INC. AND SUBSIDIARIES

TABLE OF CONTENTS

			Page Number(s)
Part 1     FINANCIAL INFORMATION
	Item 1     Consolidated Financial Statements (Unaudited)
		Consolidated Balance Sheets     As of March 31, 2016 and December 31, 2015	3
		Consolidated Statements of Income     For the Three Months Ended March 31, 2016 and 2015	4
		Consolidated Statements of Comprehensive Income     For the Three Months Ended March 31, 2016 and 2015	5
		Consolidated Statements of Changes in Stockholders' Equity     For the Three Months Ended March 31, 2016 and 2015	6
		Consolidated Statements of Cash Flows     For the Three Months Ended March 31, 2016 and 2015	7
		Notes to Consolidated Financial Statements
		Note 1. Summary of Significant Accounting Policies	9
		Note 2. Investment Securities	11
		Note 3. Loans/Leases Receivable	16
		Note 4. Borrowings	26
		Note 5. Earnings Per Share	26
		Note 6. Fair Value	26
		Note 7. Business Segment Information	30
		Note 8. Regulatory Capital Requirements	31
	Item 2     Management's Discussion and Analysis of Financial Condition and Results of Operations
		Introduction	33
		General	33
		Executive Overview	33
		Long-Term Financial Goals	35
		Strategic Developments	36
		GAAP to Non-GAAP Reconciliations	38
		Net Interest Income (Tax Equivalent Basis)	40
		Critical Accounting Policies	43

1

		Results of Operations
		Interest Income	44
		Interest Expense	44
		Provision for Loan/Lease Losses	45
		Noninterest Income	45
		Noninterest Expense	48
		Income Taxes	49
		Financial Condition	50
		Investment Securities	50
		Loans/Leases	52
		Allowance for Estimated Losses on Loans/Leases	54
		Nonperforming Assets	56
		Deposits	57
		Borrowings	57
		Stockholders' Equity	59
		Liquidity and Capital Resources	59
		Special Note Concerning Forward-Looking Statements	62
	Item 3     Quantitative and Qualitative Disclosures About Market Risk		63
	Item 4     Controls and Procedures		65
Part II     OTHER INFORMATION
	Item 1     Legal Proceedings		66
	Item 1A  Risk Factors		66
	Item 2     Unregistered Sales of Equity Securities and Use of Proceeds		66
	Item 3     Defaults upon Senior Securities		66
	Item 4     Mine Safety Disclosures		66
	Item 5     Other Information		66
	Item 6     Exhibits		67
Signatures			68

Throughout the Notes to the Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations, we use certain acronyms and abbreviations, as defined in Note 1.

2

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

As of March 31, 2016 and December 31, 2015

	March 31,			December 31,
	2016			2015
ASSETS
Cash and due from banks	$	44,930,836		$	41,742,321
Federal funds sold		15,740,000			19,850,000
Interest-bearing deposits at financial institutions		41,489,171			36,313,965
Securities held to maturity, at amortized cost		261,129,586			253,674,159
Securities available for sale, at fair value		276,187,867			323,434,982
Total securities		537,317,453			577,109,141
Loans receivable held for sale		765,385			565,850
Loans/leases receivable held for investment		1,873,058,231			1,797,456,825
Gross loans/leases receivable		1,873,823,616			1,798,022,675
Less allowance for estimated losses on loans/leases		(27,395,442	)		(26,140,906	)
Net loans/leases receivable		1,846,428,174			1,771,881,769
Bank-owned life insurance		55,879,264			55,485,655
Premises and equipment, net		38,142,454			37,350,352
Restricted investment securities		15,321,175			14,835,925
Other real estate owned, net		6,680,283			7,150,658
Goodwill		3,222,688			3,222,688
Core deposit intangible		1,421,531			1,471,409
Other assets		34,100,225			26,784,392
Total assets	$	2,640,673,254		$	2,593,198,275
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing	$	641,858,800		$	615,292,211
Interest-bearing		1,347,714,289			1,265,373,973
Total deposits		1,989,573,089			1,880,666,184
Short-term borrowings		64,022,811			144,662,716
Federal Home Loan Bank advances		150,500,000			151,000,000
Other borrowings		100,000,000			110,000,000
Junior subordinated debentures		33,378,402			38,499,052
Other liabilities		68,056,233			42,484,573
Total liabilities		2,405,530,535			2,367,312,525
STOCKHOLDERS' EQUITY
Preferred stock, $1 par value; shares authorized 250,000		-			-
March 2016 and December 2015 - No shares issued or outstanding
Common stock, $1 par value; shares authorized 20,000,000		11,814,911			11,761,083
March 2016 - 11,814,911 shares issued and outstanding
December 2015 - 11,761,083 shares issued and outstanding
Additional paid-in capital		124,057,965			123,282,851
Retained earnings		98,868,261			92,965,645
Accumulated other comprehensive income (loss):
Securities available for sale		1,455,351			(1,324,408	)
Interest rate cap derivatives		(1,053,769	)		(799,421	)
Total stockholders' equity		235,142,719			225,885,750
Total liabilities and stockholders' equity	$	2,640,673,254		$	2,593,198,275

See Notes to Consolidated Financial Statements (Unaudited)

3

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

Three Months Ended March 31,

	2016		2015
Interest and dividend income:
Loans/leases, including fees	$	19,700,370	$	18,004,519
Securities:
Taxable		1,356,203		1,942,765
Nontaxable		2,242,015		1,730,568
Interest-bearing deposits at financial institutions		60,317		77,054
Restricted investment securities		130,564		142,318
Federal funds sold		12,590		4,506
Total interest and dividend income		23,502,059		21,901,730
Interest expense:
Deposits		1,289,798		1,072,445
Short-term borrowings		43,066		64,025
Federal Home Loan Bank advances		441,704		1,443,715
Other borrowings		825,083		1,231,886
Junior subordinated debentures		304,886		307,442
Total interest expense		2,904,537		4,119,513
Net interest income		20,597,522		17,782,217
Provision for loan/lease losses		2,072,985		1,710,456
Net interest income after provision for loan/lease losses		18,524,537		16,071,761
Noninterest income:
Trust department fees		1,575,907		1,633,395
Investment advisory and management fees		658,385		710,043
Deposit service fees		931,079		901,356
Gains on sales of residential real estate loans, net		60,386		86,140
Gains on sales of government guaranteed portions of loans, net		878,528		70,973
Swap fee income		856,958		726,207
Securities gains, net		358,480		421,066
Earnings on bank-owned life insurance		393,609		478,739
Debit card fees		307,651		238,000
Correspondent banking fees		302,130		319,621
Participation service fees on commercial loan participations		210,709		221,949
Fee income from early termination of leases		11,750		84,839
Credit card issuing fees		136,655		134,160
Other		140,246		195,290
Total noninterest income		6,822,473		6,221,778
Noninterest expense:
Salaries and employee benefits		10,800,907		11,034,452
Occupancy and equipment expense		1,826,988		1,794,171
Professional and data processing fees		1,447,413		1,470,517
FDIC insurance, other insurance and regulatory fees		634,365		719,057
Loan/lease expense		162,819		302,924
Net cost of operations of other real estate		102,183		76,851
Advertising and marketing		386,259		418,237
Postage and communications		217,090		248,956
Stationery and supplies		164,871		142,555
Bank service charges		415,931		337,458
Losses on debt extinguishment, net		83,197		-
Correspondent banking expense		176,989		175,703
Other		535,486		483,280
Total noninterest expense		16,954,498		17,204,161
Net income before income taxes		8,392,512		5,089,378
Federal and state income tax expense		2,019,023		911,489
Net income	$	6,373,489	$	4,177,889
Basic earnings per common share	$	0.54	$	0.52
Diluted earnings per common share	$	0.53	$	0.52
Weighted average common shares outstanding		11,793,620		7,975,910
Weighted average common and common equivalent shares outstanding		11,953,949		8,097,444
Cash dividends declared per common share	$	0.04	$	-

See Notes to Consolidated Financial Statements (Unaudited)

4

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

Three Months Ended March 31, 2016 and 2015

	Three Months Ended March 31,
	2016			2015
Net income	$	6,373,489		$	4,177,889
Other comprehensive income:
Unrealized gains on securities available for sale:
Unrealized holding gains arising during the period before tax		4,863,718			4,402,337
Less reclassification adjustment for gains included in net income before tax		358,480			421,066
		4,505,238			3,981,271
Unrealized losses on interest rate cap derivatives:
Unrealized holding losses arising during the period before tax		(405,373	)		(372,384	)
Less reclassification adjustment for ineffectiveness and caplet amortization before tax		15,438			901
		(420,811	)		(373,285	)
Other comprehensive income, before tax		4,084,427			3,607,986
Tax expense		1,559,016			1,387,121
Other comprehensive income, net of tax		2,525,411			2,220,865
Comprehensive income attributable to QCR Holdings, Inc.	$	8,898,900		$	6,398,754

See Notes to Consolidated Financial Statements (Unaudited)

5

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)

Three Months Ended March 31, 2016 and 2015

	Common Stock			Additional Paid-In Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock		Total
Balance December 31, 2015	$	11,761,083		$	123,282,851		$	92,965,645		$	(2,123,829	)	$	-	$	225,885,750
Net income		-			-			6,373,489			-			-		6,373,489
Other comprehensive income, net of tax		-			-			-			2,525,411			-		2,525,411
Common cash dividends declared, $0.04 per share		-			-			(470,873	)		-			-		(470,873	)
Proceeds from issuance of 5,054 shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan		5,054			94,560			-			-			-		99,614
Proceeds from issuance of 30,331 shares of common stock as a result of stock options exercised		30,331			382,639			-			-			-		412,970
Stock compensation expense		-			382,761											382,761
Tax benefit of nonqualified stock options exercised		-			22,508			-			-			-		22,508
Restricted stock awards		22,382			(22,382	)		-			-			-		-
Exchange of 3,939 shares of common stock in connection with restricted stock vested, net		(3,939	)		(84,972	)		-			-			-		(88,911	)
Balance March 31, 2016	$	11,814,911		$	124,057,965		$	98,868,261		$	401,582		$	-	$	235,142,719

	Common Stock			Paid-In Capital			Additional Retained Earnings		Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
Balance December 31, 2014	$	8,074,443		$	61,668,968		$	77,876,824	$	(1,935,216	)	$	(1,606,510	)	$	144,078,509
Net income		-			-			4,177,889		-			-			4,177,889
Other comprehensive income, net of tax		-			-			-		2,220,865			-			2,220,865
Proceeds from issuance of 5,679 shares of common stock as a result of stock purchased under the Employee Stock Purchase Plan		5,679			82,641			-		-			-			88,320
Proceeds from issuance of 9,688 shares of common stock as a result of stock options exercised		9,688			94,728			-		-			-			104,416
Stock compensation expense		-			367,775			-		-			-			367,775
Tax benefit of nonqualified stock options exercised		-			15,651			-		-			-			15,651
Restricted stock awards		26,502			(26,502	)		-		-			-			-
Exchange of 3,272 shares of common stock in connection with restricted stock vested, net		(3,272	)		(54,188	)		-		-			-			(57,460	)
Balance March 31, 2015	$	8,113,040		$	62,149,073		$	82,054,713	$	285,649		$	(1,606,510	)	$	150,995,965

See Notes to Consolidated Financial Statements (Unaudited)

6

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended March 31, 2016 and 2015

	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	6,373,489		$	4,177,889
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		766,069			745,268
Provision for loan/lease losses		2,072,985			1,710,456
Stock-based compensation expense		382,761			367,775
Deferred compensation expense accrued		318,796			437,600
Losses (gains) on other real estate owned, net		(7,740	)		28,953
Amortization of premiums on securities, net		294,286			214,427
Securities gains, net		(358,480	)		(421,066	)
Loans originated for sale		(18,901,618	)		(6,647,937	)
Proceeds on sales of loans		19,640,997			6,569,050
Gains on sales of residential real estate loans		(60,386	)		(86,140	)
Gains on sales of government guaranteed portions of loans		(878,528	)		(70,973	)
Losses on debt extinguishment, net		83,197			-
Amortization of core deposit intangible		49,878			49,878
Accretion of acquisition fair value adjustments, net		(44,169	)		(178,380	)
Increase in cash value of bank-owned life insurance		(393,609	)		(478,739	)
Decrease (increase) in other assets		(9,295,660	)		486,879
Increase (decrease) in other liabilities		5,079,831			(1,840,279	)
Net cash provided by operating activities	$	5,122,099		$	5,064,661
CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease in federal funds sold		4,110,000			32,745,000
Net decrease (increase) in interest-bearing deposits at financial institutions		(5,175,206	)		18,215,699
Proceeds from sales of other real estate owned		494,115			331,151
Activity in securities portfolio:
Purchases		(45,070,780	)		(124,568,138	)
Calls, maturities and redemptions		47,573,001			83,794,967
Paydowns		6,428,508			4,073,422
Sales		55,526,851			54,971,056
Activity in restricted investment securities:
Purchases		(485,250	)		(146,300	)
Redemptions		-			3,800
Net increase in loans/leases originated and held for investment		(76,346,066	)		(25,689,344	)
Purchase of premises and equipment		(1,558,171	)		(3,197,547	)
Net cash provided by (used in) investing activities	$	(14,502,998	)	$	40,533,766
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposit accounts		108,903,515			54,603,339
Net decrease in short-term borrowings		(80,639,905	)		(85,015,951	)
Activity in Federal Home Loan Bank advances:
Term advances		-			5,000,000
Maturities		(7,000,000	)		(5,000,000	)
Net change in short-term and overnight advances		16,500,000			(7,000,000	)
Prepayments		(10,524,197	)		-
Activity in other borrowings:
Maturities and scheduled principal payments		-			(1,175,000	)
Prepayments		(10,759,000	)		-
Retirement of junior subordinated debentures		(3,955,000	)		-
Payment of cash dividends on common stock		(468,583	)		(315,955	)
Proceeds from issuance of common stock, net		512,584			208,387
Net cash provided by (used in) financing activities	$	12,569,414		$	(38,695,180	)
Net increase in cash and due from banks		3,188,515			6,903,247
Cash and due from banks, beginning		41,742,321			38,235,019
Cash and due from banks, ending	$	44,930,836		$	45,138,266

(Continued)

7

QCR HOLDINGS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - continued

Three Months Ended March 31, 2016 and 2015

	2016			2015
Supplemental disclosure of cash flow information, cash payments for:
Interest	$	2,944,839		$	4,103,459
Income/franchise taxes	$	2,464,300		$	1,618,064
Supplemental schedule of noncash investing activities:
Change in accumulated other comprehensive income, unrealized gains on securities available for sale and derivative instruments, net	$	2,525,411		$	2,220,865
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised	$	(88,911	)	$	(57,460	)
Tax benefit of nonqualified stock options exercised	$	22,508		$	15,651
Transfers of loans to other real estate owned	$	16,000		$	837,782
Due to broker for purchases of securities	$	(20,104,340	)	$	-

See Notes to Consolidated Financial Statements (Unaudited)

8

Part I

Item 1

QCR HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

March 31, 2016

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, 2015, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 11, 2016. 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. GAAP 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 as of and for the three months ended March 31, 2016, are not necessarily indicative of the results expected for the year ending December 31, 2016.

The acronyms and abbreviations identified below are used throughout this Quarterly Report on Form 10-Q. It may be helpful to refer back to this page as you read this report.

Allowance: Allowance for estimated losses on loans/leases	HTM: Held to maturity
AOCI: Accumulated other comprehensive income (loss)	m2: m2 Lease Funds, LLC
AFS: Available for sale	MD&A: Management's Discussion & Analysis
ASU: Accounting Standards Update	NIM: Net interest margin
BOLI: Bank-owned life insurance	NPA: Nonperforming asset
Caps: Interest rate cap derivatives	NPL: Nonperforming loan
Community National: Community National Bancorporation	OREO: Other real estate owned
CNB: Community National Bank	OTTI: Other-than-temporary impairment
CRBT: Cedar Rapids Bank & Trust Company	Provision: Provision for loan/lease losses
CRE: Commercial real estate	QCBT: Quad City Bank & Trust Company
C&I: Commercial and industrial	RB&T: Rockford Bank & Trust Company
Dodd-Frank Act: Dodd-Frank Wall Street Reform and	ROAA: Return on Average Assets
Consumer Protection Act	SBA: U.S. Small Business Administration
EPS: Earnings per share	SEC: Securities and Exchange Commission
Exchange Act: Securities Exchange Act of 1934, as amended	TA: Tangible assets
FASB: Financial Accounting Standards Board	TCE: Tangible common equity
FDIC: Federal Deposit Insurance Corporation	TDRs: Troubled debt restructurings
FHLB: Federal Home Loan Bank	The Company: QCR Holdings, Inc.
FRB: Federal Reserve Bank of Chicago	USDA: U.S. Department of Agriculture
GAAP: Generally Accepted Accounting Principles

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries which include three commercial banks: QCBT, CRBT, and RB&T. All are state-chartered commercial banks. The Company also engages in direct financing lease contracts through m2 Lease Funds, a wholly-owned subsidiary of QCBT. All material intercompany transactions and balances have been eliminated in consolidation.

9

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Recent accounting developments: 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 was originally effective for the Company on January 1, 2017, however, FASB issued ASU 2015-14 which defers the effective date in order to provide additional time for both public and private entities to evaluate the impact. ASU 2014-09 will now be effective for the Company on January 1, 2018 and it is not expected to have a significant impact on the Company’s consolidated financial statements.

In February 2015, FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis. ASU 2015-02 is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The ASU focuses on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The ASU also reduces the number of consolidation models from four to two. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and adoption did not have a significant impact on the Company’s consolidated financial statements.

In January 2016, FASB issued ASU 2016-01, Financial Instruments – Overall. ASU 2016-01 makes targeted adjustments to GAAP by eliminating the available for sale classification for equity securities and requiring equity investments to be measured at fair value with changes in fair value recognized in net income. The standard also requires public business entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes. The standard clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. It also requires an entity to present separately (within other comprehensive income) the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, the standard eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is in the process of analyzing the impact of adoption.

In February 2016, the FASB issued ASU 2016-02, Leases. Under ASU 2016-02, lessees will be required to recognize a lease liability measured on a discounted basis and a right-of-use asset for all leases (with the exception of short-term leases). Lessor accounting is largely unchanged under ASU 2016-02. However, the definition of initial direct costs was updated to include only initial direct costs that are considered incremental. This change in definition will change the manner in which the Company recognizes the costs associated with originating leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for all entities. The Company is in the process of analyzing the impact of adoption on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation. ASU 2016-09 aims to simplify the accounting for companies that issue share-based payment awards to their employees. Simplification includes the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows of share-based payment awards. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is in the process of analyzing the impact of adoption on the Company’s consolidated financial statements.

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Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

FASB recently reached an updated decision on the effective date for its yet to be issued standard regarding measurement of credit losses on financial instruments. Under the standard it is expected that impairment of the Company’s loans/leases receivable will be measured using the current expected credit loss model, which will entail day-one recognition of life-of-asset expected losses. The standard is expected to be issued during 2016 and will be effective for the Company for the fiscal year beginning January 1, 2020. Management has not yet analyzed the impact of adoption.

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

NOTE 2 – INVESTMENT SECURITIES

The amortized cost and fair value of investment securities as of March 31, 2016 and December 31, 2015 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2016
Securities held to maturity:
Municipal securities	$	260,079,586	$	4,143,965	$	(858,829	)	$	263,364,722
Other securities		1,050,000		-		-			1,050,000
	$	261,129,586	$	4,143,965	$	(858,829	)	$	264,414,722
Securities available for sale:
U.S. govt. sponsored agency securities	$	132,080,737	$	786,623	$	(125,538	)	$	132,741,822
Residential mortgage-backed and related securities		116,012,771		761,091		(321,488	)		116,452,374
Municipal securities		24,113,773		839,125		(23,243	)		24,929,655
Other securities		1,637,366		428,027		(1,377	)		2,064,016
	$	273,844,647	$	2,814,866	$	(471,646	)	$	276,187,867
December 31, 2015:
Securities held to maturity:
Municipal securities	$	252,624,159	$	3,190,558	$	(1,173,432	)	$	254,641,285
Other securities		1,050,000		-		-			1,050,000
	$	253,674,159	$	3,190,558	$	(1,173,432	)	$	255,691,285
Securities available for sale:
U.S. govt. sponsored agency securities	$	216,281,416	$	104,524	$	(2,848,561	)	$	213,537,379
Residential mortgage-backed and related securities		81,442,479		511,095		(1,283,439	)		80,670,135
Municipal securities		26,764,981		872,985		(59,378	)		27,578,588
Other securities		1,108,124		540,919		(163	)		1,648,880
	$	325,597,000	$	2,029,523	$	(4,191,541	)	$	323,434,982

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Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

The Company’s HTM municipal securities consist largely of private issues of municipal debt. The large majority of the municipalities are located within the Midwest. 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 March 31, 2016 and December 31, 2015, 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
March 31, 2016:
Securities held to maturity:
Municipal securities	$	16,874,982	$	(669,283	)	$	7,610,345	$	(189,546	)	$	24,485,327	$	(858,829	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	24,512,886	$	(76,931	)	$	4,946,100	$	(48,607	)	$	29,458,986	$	(125,538	)
Residential mortgage-backed and related securities		18,687,105		(81,719	)		29,708,984		(239,769	)		48,396,089		(321,488	)
Municipal securities		1,157,233		(2,185	)		849,972		(21,058	)		2,007,205		(23,243	)
Other securities		498,623		(1,377	)		-		-			498,623		(1,377	)
	$	44,855,847	$	(162,212	)	$	35,505,056	$	(309,434	)	$	80,360,903	$	(471,646	)
December 31, 2015:
Securities held to maturity:
Municipal securities	$	14,803,408	$	(294,438	)	$	19,927,581	$	(878,994	)	$	34,730,989	$	(1,173,432	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	112,900,327	$	(1,397,591	)	$	64,476,661	$	(1,450,970	)	$	177,376,988	$	(2,848,561	)
Residential mortgage-backed and related securities		40,356,921		(730,466	)		19,836,637		(552,973	)		60,193,558		(1,283,439	)
Municipal securities		2,220,800		(31,807	)		848,329		(27,571	)		3,069,129		(59,378	)
Other securities		411		(163	)		-		-			411		(163	)
	$	155,478,459	$	(2,160,027	)	$	85,161,627	$	(2,031,514	)	$	240,640,086	$	(4,191,541	)

At March 31, 2016, the investment portfolio included 465 securities. Of this number, 58 securities were in an unrealized loss position. The aggregate losses of these securities totaled less than 1% of the total amortized cost of the portfolio. Of these 58 securities, 21 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 March 31, 2016 and December 31, 2015, equity securities represented less than 1% of the total portfolio.

The Company did not recognize OTTI on any debt or equity securities for the three months ended March 31, 2016 and 2015.   

12

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Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

All sales of securities for the three months ended March 31, 2016 and 2015, respectively, were from securities identified as AFS. Information on proceeds received, as well as pre-tax gross gains and losses from sales on those securities are as follows:

	Three Months Ended
	March 31, 2016			March 31, 2015
Proceeds from sales of securities	$	55,526,851		$	54,971,056
Pre-tax gross gains from sales of securities		515,515			573,684
Pre-tax gross losses from sales of securities		(157,035	)		(152,618	)

The amortized cost and fair value of securities as of March 31, 2016 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 prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following table. “Other securities” AFS 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	$	4,206,670	$	4,213,609
Due after one year through five years		20,737,843		20,889,363
Due after five years		236,185,073		239,311,750
	$	261,129,586	$	264,414,722
Securities available for sale:
Due in one year or less	$	1,884,460	$	1,895,137
Due after one year through five years		68,198,829		69,027,450
Due after five years		86,111,221		86,748,890
	$	156,194,510	$	157,671,477
Residential mortgage-backed and related securities		116,012,771		116,452,374
Other securities		1,637,366		2,064,016
	$	273,844,647	$	276,187,867

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	$	135,926,431	$	137,921,557
Securities available for sale:
U.S. govt. sponsored agency securities		65,969,684		65,976,489
Municipal securities		15,335,099		15,728,025
	$	81,304,783	$	81,704,514

13

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Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

As of March 31, 2016, the Company’s municipal securities portfolios were comprised of general obligation bonds issued by 82 issuers with fair values totaling $72.7 million and revenue bonds issued by 95 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $215.6 million. The Company held investments in general obligation bonds in 19 states, including four states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in nine states, including four states in which the aggregate fair value exceeded $5.0 million.

As of December 31, 2015, the Company’s municipal securities portfolios were comprised of general obligation bonds issued by 82 issuers with fair values totaling $67.8 million and revenue bonds issued by 92 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $214.4 million. The Company held investments in general obligation bonds in 19 states, including four states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in nine 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:

March 31, 2016:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		15	$	19,974,438	$	20,309,435	$	1,353,962
Illinois		10		12,665,888		13,014,865		1,301,487
Missouri		12		7,393,378		7,488,699		624,058
North Dakota		6		16,403,026		16,616,824		2,769,471
Other		39		14,954,651		15,233,176		390,594
Total general obligation bonds		82	$	71,391,381	$	72,662,999	$	886,134

December 31, 2015:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		15	$	19,974,939	$	20,247,108	$	1,349,807
Illinois		9		10,928,700		11,264,348		1,251,594
North Dakota		5		10,890,000		11,050,235		2,210,047
Missouri		12		7,924,800		7,986,856		665,571
Other		41		16,965,393		17,229,485		420,231
Total general obligation bonds		82	$	66,683,832	$	67,778,032	$	826,561

14

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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:

March 31, 2016:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Missouri		42	$	76,260,706	$	77,142,220	$	1,836,720
Iowa		27		74,013,142		75,274,793		2,787,955
Indiana		17		39,342,789		39,675,326		2,333,843
Kansas		4		12,022,852		12,116,209		3,029,052
Other		5		11,162,489		11,422,830		2,284,566
Total revenue bonds		95	$	212,801,978	$	215,631,378	$	2,269,804

December 31, 2015:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Missouri		41	$	78,593,590	$	79,015,378	$	1,927,204
Iowa		26		70,773,660		71,659,410		2,756,131
Indiana		17		40,018,381		40,210,320		2,365,313
Kansas		3		11,748,679		11,821,055		3,940,352
Other		5		11,570,998		11,735,678		2,347,136
Total revenue bonds		92	$	212,705,308	$	214,441,841	$	2,330,890

Both general obligation and revenue bonds are diversified across many issuers. As of March 31, 2016 and December 31, 2015, the Company did not hold general obligation or revenue bonds of any single issuer, the aggregate book or market value of which exceeded 4% of the Company’s stockholders’ equity. Of the general obligation and revenue bonds in the Company’s portfolio, the majority are unrated bonds that represent small, private issuances. All unrated bonds were underwritten according to loan underwriting standards and have an average loan risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential municipal services such as water, sewer, education, and 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 March 31, 2016, 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 March 31, 2016, the Company’s standard monitoring of its municipal securities portfolio had not uncovered any facts or circumstances resulting in significantly different credit 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.

15

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Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

NOTE 3 – LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of March 31, 2016 and December 31, 2015 is presented as follows:

	As of March 31, 2016			As of December 31, 2015
C&I loans	$	682,056,782		$	648,159,892
CRE loans
Owner-occupied CRE		261,730,899			252,523,164
Commercial construction, land development, and other land		37,970,546			49,083,844
Other non owner-occupied CRE		466,457,920			422,761,757
		766,159,365			724,368,765
Direct financing leases *		172,774,048			173,655,605
Residential real estate loans **		173,096,209			170,432,530
Installment and other consumer loans		71,842,268			73,669,493
		1,865,928,672			1,790,286,285
Plus deferred loan/lease origination costs, net of fees		7,894,944			7,736,390
		1,873,823,616			1,798,022,675
Less allowance		(27,395,442	)		(26,140,906	)
	$	1,846,428,174		$	1,771,881,769
* Direct financing leases:
Net minimum lease payments to be received	$	194,005,721		$	195,476,230
Estimated unguaranteed residual values of leased assets		1,131,634			1,165,706
Unearned lease/residual income		(22,363,307	)		(22,986,331	)
		172,774,048			173,655,605
Plus deferred lease origination costs, net of fees		6,493,124			6,594,582
		179,267,172			180,250,187
Less allowance		(3,287,230	)		(3,395,088	)
	$	175,979,942		$	176,855,099

*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, which is combined with 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 months ended March 31, 2016 and 2015.

**Includes residential real estate loans held for sale totaling $765,385 and $565,850 as of March 31, 2016, and December 31, 2015, respectively.

16

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 March 31, 2016 and December 31, 2015 is presented as follows:

	As of March 31, 2016
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
C&I	$	674,901,078		$	1,038,410		$	469,292		$	-		$	5,648,002		$	682,056,782
CRE
Owner-Occupied CRE		260,963,128			109,210			-			-			658,561			261,730,899
Commercial Construction, Land Development, and Other Land		37,779,180			-			-			-			191,366			37,970,546
Other Non Owner-Occupied CRE		464,239,777			898,733			212,884			-			1,106,526			466,457,920
Direct Financing Leases		169,792,466			977,630			207,496			-			1,796,456			172,774,048
Residential Real Estate		168,865,064			3,133,246			-			46,256			1,051,643			173,096,209
Installment and Other Consumer		70,864,000			645,537			12,776			162			319,793			71,842,268
	$	1,847,404,693		$	6,802,766		$	902,448		$	46,418		$	10,772,347		$	1,865,928,672
As a percentage of total loan/lease portfolio		99.01	%		0.36	%		0.05	%		0.00	%		0.58	%		100.00	%

	As of December 31, 2015
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
C&I	$	640,725,241		$	1,636,860		$	5,816		$	-		$	5,791,975		$	648,159,892
CRE
Owner-Occupied CRE		251,612,752			182,949			-			-			727,463			252,523,164
Commercial Construction, Land Development, and Other Land		48,890,040			-			-			-			193,804			49,083,844
Other Non Owner-Occupied CRE		420,819,874			614,732			219,383			-			1,107,768			422,761,757
Direct Financing Leases		170,021,289			1,490,818			439,314			2,843			1,701,341			173,655,605
Residential Real Estate		166,415,118			2,800,589			200,080			-			1,016,743			170,432,530
Installment and Other Consumer		73,134,197			412,052			14,127			-			109,117			73,669,493
	$	1,771,618,511		$	7,138,000		$	878,720		$	2,843		$	10,648,211		$	1,790,286,285
As a percentage of total loan/lease portfolio		98.96	%		0.40	%		0.05	%		0.00	%		0.59	%		100.00	%

17

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Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

NPLs by classes of loans/leases as of March 31, 2016 and December 31, 2015 are presented as follows:

	As of March 31, 2016
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases *		Accruing TDRs		Total NPLs		Percentage of Total NPLs
C&I	$	-	$	5,648,002	$	172,093	$	5,820,095		48.60	%
CRE
Owner-Occupied CRE		-		658,561		-		658,561		5.50	%
Commercial Construction, Land Development, and Other Land		-		191,366		-		191,366		1.60	%
Other Non Owner-Occupied CRE		-		1,106,526		-		1,106,526		9.24	%
Direct Financing Leases		-		1,796,456		456,592		2,253,048		18.81	%
Residential Real Estate		46,256		1,051,643		398,337		1,496,236		12.49	%
Installment and Other Consumer		162		319,793		129,808		449,763		3.76	%
	$	46,418	$	10,772,347	$	1,156,830	$	11,975,595		100.00	%

*Nonaccrual loans/leases included $1,576,057 of TDRs, including $1,217,243 in C&I loans, $191,366 in CRE loans, $37,750 in direct financing leases, $115,671 in residential real estate loans, and $14,027 in installment loans.

	As of December 31, 2015
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases **		Accruing TDRs		Total NPLs		Percentage of Total NPLs
C&I	$	-	$	5,791,975	$	173,087	$	5,965,062		50.96	%
CRE
Owner-Occupied CRE		-		727,463		-	$	727,463		6.22	%
Commercial Construction, Land Development, and Other Land		-		193,804		-	$	193,804		1.66	%
Other Non Owner-Occupied CRE		-		1,107,768		-	$	1,107,768		9.46	%
Direct Financing Leases		2,843		1,701,341		-	$	1,704,184		14.56	%
Residential Real Estate		-		1,016,743		402,044	$	1,418,787		12.12	%
Installment and Other Consumer		-		109,117		478,625	$	587,742		5.02	%
	$	2,843	$	10,648,211	$	1,053,756	$	11,704,810		100.00	%

**Nonaccrual loans/leases included $1,533,657 of TDRs, including $1,164,423 in C&I loans, $193,804 in CRE loans, $42,098 in direct financing leases, $119,305 in residential real estate loans, and $14,027 in installment loans.

18

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Changes in the allowance by portfolio segment for the three months ended March 31, 2016 and 2015, respectively, are presented as follows:

	Three Months Ended March 31, 2016
	C&I			CRE		Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	10,484,080		$	9,375,117	$	3,395,088		$	1,790,150		$	1,096,471		$	26,140,906
Provisions charged to expense		739,831			715,450		478,245			62,656			76,803			2,072,985
Loans/leases charged off		(243,566	)		-		(600,938	)		(16,184	)		(7,596	)		(868,284	)
Recoveries on loans/leases previously charged off		11,634			-		14,836			-			23,365			49,835
Balance, ending	$	10,991,979		$	10,090,567	$	3,287,231		$	1,836,622		$	1,189,043		$	27,395,442

	Three Months Ended March 31, 2015
	C&I			CRE			Direct Financing Leases			Residential Real Estate		Installment and Other Consumer			Total
Balance, beginning	$	8,833,832		$	8,353,386		$	3,359,400		$	1,525,952	$	1,001,795		$	23,074,365
Provisions charged to expense		388,641			835,894			403,452			71,802		10,667			1,710,456
Loans/leases charged off		(200,301	)		(351,076	)		(547,492	)		-		(8,794	)		(1,107,663	)
Recoveries on loans/leases previously charged off		154,992			-			12,098			-		39,025			206,115
Balance, ending	$	9,177,164		$	8,838,204		$	3,227,458		$	1,597,754	$	1,042,693		$	23,883,273

19

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

The allowance by impairment evaluation and by portfolio segment as of March 31, 2016 and December 31, 2015 is presented as follows:

	As of March 31, 2016
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	2,168,454		$	82,296		$	483,193		$	199,498		$	246,413		$	3,179,854
Allowance for nonimpaired loans/leases		8,823,525			10,008,271			2,804,038			1,637,124			942,630			24,215,588
	$	10,991,979		$	10,090,567		$	3,287,231		$	1,836,622		$	1,189,043		$	27,395,442
Impaired loans/leases	$	5,178,446		$	1,946,451		$	2,253,046		$	1,496,236		$	449,600		$	11,323,779
Nonimpaired loans/leases		676,878,336			764,212,914			170,521,002			171,599,973			71,392,668			1,854,604,893
	$	682,056,782		$	766,159,365		$	172,774,048		$	173,096,209		$	71,842,268		$	1,865,928,672
Allowance as a percentage of impaired loans/leases		41.87	%		4.23	%		21.45	%		13.33	%		54.81	%		28.08	%
Allowance as a percentage of nonimpaired loans/leases		1.30	%		1.31	%		1.64	%		0.95	%		1.32	%		1.31	%
Total allowance as a percentage of total loans/leases		1.61	%		1.32	%		1.90	%		1.06	%		1.66	%		1.46	%

	As of December 31, 2015
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	2,592,270		$	76,934		$	306,193		$	185,801		$	143,089		$	3,304,287
Allowance for nonimpaired loans/leases		7,891,810			9,298,183			3,088,895			1,604,349			953,382			22,836,619
	$	10,484,080		$	9,375,117		$	3,395,088		$	1,790,150		$	1,096,471		$	26,140,906
Impaired loans/leases	$	5,286,482		$	2,029,035		$	1,701,341		$	1,418,787		$	587,742		$	11,023,387
Nonimpaired loans/leases		642,873,410			722,339,730			171,954,264			169,013,743			73,081,751			1,779,262,898
	$	648,159,892		$	724,368,765		$	173,655,605		$	170,432,530		$	73,669,493		$	1,790,286,285
Allowance as a percentage of impaired loans/leases		49.04	%		3.79	%		18.00	%		13.10	%		24.35	%		29.98	%
Allowance as a percentage of nonimpaired loans/leases		1.23	%		1.29	%		1.80	%		0.95	%		1.30	%		1.28	%
Total allowance as a percentage of total loans/leases		1.62	%		1.29	%		1.96	%		1.05	%		1.49	%		1.45	%

20

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 three months ended March 31, 2016 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:
C&I	$	286,508	$	477,450	$	-	$	347,369	$	1,824	$	1,824
CRE
Owner-Occupied CRE		242,887		336,661		-		244,824		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		-		-		-
Other Non Owner-Occupied CRE		1,512,198		1,512,198		-		1,545,334		-		-
Direct Financing Leases		1,314,779		1,314,779		-		1,176,588		11,603		11,603
Residential Real Estate		585,186		624,387		-		585,981		1,038		1,038
Installment and Other Consumer		47,480		47,480		-		212,392		-		-
	$	3,989,038	$	4,312,955	$	-	$	4,112,488	$	14,465	$	14,465
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	4,891,938	$	4,895,777	$	2,168,454	$	4,885,096	$	-	$	-
CRE
Owner-Occupied CRE		-		-		-		-		-		-
Commercial Construction, Land Development, and Other Land		191,366		203,366		82,296		192,585		-		-
Other Non Owner-Occupied CRE		-		-		-		-		-		-
Direct Financing Leases		938,267		938,267		483,193		800,606		-		-
Residential Real Estate		911,050		946,628		199,498		871,531		1,958		1,958
Installment and Other Consumer		402,120		402,120		246,413		306,279		1,500		1,500
	$	7,334,741	$	7,386,158	$	3,179,854	$	7,056,097	$	3,458	$	3,458
Total Impaired Loans/Leases:
C&I	$	5,178,446	$	5,373,227	$	2,168,454	$	5,232,465	$	1,824	$	1,824
CRE
Owner-Occupied CRE		242,887		336,661		-		244,824		-		-
Commercial Construction, Land Development, and Other Land		191,366		203,366		82,296		192,585		-		-
Other Non Owner-Occupied CRE		1,512,198		1,512,198		-		1,545,334		-		-
Direct Financing Leases		2,253,046		2,253,046		483,193		1,977,194		11,603		11,603
Residential Real Estate		1,496,236		1,571,015		199,498		1,457,512		2,996		2,996
Installment and Other Consumer		449,600		449,600		246,413		518,671		1,500		1,500
	$	11,323,779	$	11,699,113	$	3,179,854	$	11,168,585	$	17,923	$	17,923

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

21

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Loans/leases, by classes of financing receivable, considered to be impaired as of and for the three months ended March 31, 2015 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:
C&I	$	331,612	$	425,636	$	-	$	1,352,320	$	1,849	$	1,849
CRE
Owner-Occupied CRE		173,131		269,354		-		189,621		-		-
Commercial Construction, Land Development, and Other Land		171,186		511,204		-		171,186		-		-
Other Non Owner-Occupied CRE		290,577		1,528,456		-		1,102,174		-		-
Direct Financing Leases		665,735		665,735		-		1,009,487		4,109		4,109
Residential Real Estate		981,608		1,017,186		-		1,089,298		483		483
Installment and Other Consumer		726,050		726,050		-		698,685		-		-
	$	3,339,899	$	5,143,621	$	-	$	5,612,771	$	6,441	$	6,441
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	4,969,554	$	4,973,392	$	2,513,023	$	4,938,115	$	-	$	-
CRE
Owner-Occupied CRE		454,980		454,980		15,154		468,590		-		-
Commercial Construction, Land Development, and Other Land		197,225		209,225		46,570		197,526		-		-
Other Non Owner-Occupied CRE		4,208,602		4,655,235		767,113		4,335,446		-		-
Direct Financing Leases		457,463		457,463		283,485		380,548		-		-
Residential Real Estate		864,957		864,957		180,160		728,349		2,830		2,830
Installment and Other Consumer		611,096		611,096		267,430		552,663		2,260		2,260
	$	11,763,877	$	12,226,348	$	4,072,935	$	11,601,237	$	5,090	$	5,090
Total Impaired Loans/Leases:
C&I	$	5,301,166	$	5,399,028	$	2,513,023	$	6,290,435	$	1,849	$	1,849
CRE
Owner-Occupied CRE		628,111		724,334		15,154		658,211		-		-
Commercial Construction, Land Development, and Other Land		368,411		720,429		46,570		368,712		-		-
Other Non Owner-Occupied CRE		4,499,179		6,183,691		767,113		5,437,620		-		-
Direct Financing Leases		1,123,198		1,123,198		283,485		1,390,035		4,109		4,109
Residential Real Estate		1,846,565		1,882,143		180,160		1,817,647		3,313		3,313
Installment and Other Consumer		1,337,146		1,337,146		267,430		1,251,348		2,260		2,260
	$	15,103,776	$	17,369,969	$	4,072,935	$	17,214,008	$	11,531	$	11,531

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 December 31, 2015 are presented as follows:

Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired Loans/Leases with No Specific Allowance Recorded:
C&I	$	234,636	$	346,072	$	-
CRE
Owner-Occupied CRE		256,761		350,535		-
Commercial Construction, Land Development, and Other Land		-		228,818		-
Other Non Owner-Occupied CRE		1,578,470		1,578,470		-
Direct Financing Leases		871,884		871,884		-
Residential Real Estate		613,486		649,064		-
Installment and Other Consumer		377,304		377,304		-
	$	3,932,541	$	4,402,147	$	-
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	5,051,846	$	5,055,685	$	2,592,270
CRE
Owner-Occupied CRE		-		-		-
Commercial Construction, Land Development, and Other Land		193,804		205,804		76,934
Other Non Owner-Occupied CRE		-		-		-
Direct Financing Leases		829,457		829,457		306,193
Residential Real Estate		805,301		805,301		185,801
Installment and Other Consumer		210,438		210,438		143,089
	$	7,090,846	$	7,106,685	$	3,304,287
Total Impaired Loans/Leases:
C&I	$	5,286,482	$	5,401,757	$	2,592,270
CRE
Owner-Occupied CRE		256,761		350,535		-
Commercial Construction, Land Development, and Other Land		193,804		434,622		76,934
Other Non Owner-Occupied CRE		1,578,470		1,578,470		-
Direct Financing Leases		1,701,341		1,701,341		306,193
Residential Real Estate		1,418,787		1,454,365		185,801
Installment and Other Consumer		587,742		587,742		143,089
	$	11,023,387	$	11,508,832	$	3,304,287

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

For C&I and CRE loans, the Company’s credit quality indicator consists of 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 March 31, 2016 and December 31, 2015:

	As of March 31, 2016
			CRE
					Non Owner-Occupied
Internally Assigned Risk Rating	C&I		Owner-Occupied CRE		Commercial Construction, Land Development, and Other Land		Other CRE		Total		As a % of Total
Pass (Ratings 1 through 5)	$	647,678,612	$	250,031,858	$	35,892,683	$	448,275,195	$	1,381,878,348		95.42	%
Special Mention (Rating 6)		12,346,445		3,376,191		1,780,000		10,562,085		28,064,721		1.94	%
Substandard (Rating 7)		22,031,725		8,322,850		297,863		7,620,640		38,273,078		2.64	%
Doubtful (Rating 8)		-		-		-		-		-		-
	$	682,056,782	$	261,730,899	$	37,970,546	$	466,457,920	$	1,448,216,147		100.00	%

	As of March 31, 2016
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total		As a % of Total
Performing	$	170,521,000	$	171,599,973	$	71,392,505	$	413,513,478		98.99	%
Nonperforming		2,253,048		1,496,236		449,763		4,199,047		1.01	%
	$	172,774,048	$	173,096,209	$	71,842,268	$	417,712,525		100.00	%

	As of December 31, 2015
			CRE
					Non Owner-Occupied
Internally Assigned Risk Rating	C&I		Owner-Occupied CRE		Commercial Construction, Land Development, and Other Land		Other CRE		Total		As a % of Total
Pass (Ratings 1 through 5)	$	616,200,797	$	238,119,608	$	46,929,876	$	406,027,442	$	1,307,277,723		95.24	%
Special Mention (Rating 6)		18,031,845		8,630,658		1,780,000		8,846,286		37,288,789		2.72	%
Substandard (Rating 7)		13,927,250		5,772,898		373,968		7,888,029		27,962,145		2.04	%
Doubtful (Rating 8)		-		-		-		-		-		-
	$	648,159,892	$	252,523,164	$	49,083,844	$	422,761,757	$	1,372,528,657		100.00	%

	As of December 31, 2015
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total		As a % of Total
Performing	$	171,951,421	$	169,013,743	$	73,081,751	$	414,046,915		99.11	%
Nonperforming		1,704,184		1,418,787		587,742		3,710,713		0.89	%
	$	173,655,605	$	170,432,530	$	73,669,493	$	417,757,628		100.00	%

*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 TDRs.

24

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

As of March 31, 2016 and December 31, 2015, TDRs totaled $2,732,887 and $2,587,413, respectively.

For each class of financing receivable, the following presents the number and recorded investment of TDRs, by type of concession, that were restructured during the three months ended March 31, 2016. There were no TDRs that were restructured during the three months ended March 31, 2015. 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 March 31, 2016
Classes of Loans/Leases	Number of Loans / Leases		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Specific Allowance
CONCESSION - Extension of Maturity
Direct Financing Leases		4	$	410,653	$	410,653	$	-
		4	$	410,653	$	410,653	$	-
CONCESSION - Significant Payment Delay
Direct Financing Leases		1	$	45,939	$	45,939	$	-
		1	$	45,939	$	45,939	$	-
TOTAL		5	$	456,592	$	456,592	$	-

Of the TDRs reported above, none were on nonaccrual as of March 31, 2016.

For the three months ended March 31, 2016 and 2015, none of the Company’s TDRs 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.

25

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

NOTE 4 – BORROWINGS

During the first quarter of 2016, the Company extinguished $5.1 million of the QCR Holdings Capital Trust IV junior subordinated debentures (the full balance outstanding) and recorded a $1.2 million gain on extinguishment (pre-tax), as the Company was able to acquire the related security at a discount through auction. This gain is included in the statements of income within losses on debt extinguishment. The interest rate on these debentures floated at 3-month LIBOR plus 1.80% and had a rate of 2.42% at the time of extinguishment. QCR Holdings Capital Trust IV was dissolved after the extinguishment.

Also during the first quarter of 2016, the Company executed balance sheet restructuring strategies at QCBT and CRBT, which included the repayment of $10.0 million of wholesale structured repurchase agreements and $10.0 million of FHLB advances with a combined weighted average interest rate of 3.92%. As a result of this restructuring, the Company incurred $1.3 million (pre-tax) in losses on debt extinguishment that are included in the statements of income. The weighted average duration of this combined debt was 2.17 years, with $10.0 million maturing in 2017 and $10.0 maturing in 2018. This funding was replaced with short-term borrowings at an average interest rate of 0.50%.

NOTE 5 - EARNINGS PER SHARE

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

	Three months ended March 31,
	2016		2015
Net income	$	6,373,489	$	4,177,889
Basic earnings per common share	$	0.54	$	0.52
Diluted earnings per common share	$	0.53	$	0.52
Weighted average common shares outstanding		11,793,620		7,975,910
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan		160,329		121,534
Weighted average common and common equivalent shares outstanding		11,953,949		8,097,444

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.

26

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Assets measured at fair value on a recurring basis comprise the following at March 31, 2016 and December 31, 2015:

			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)
March 31, 2016:
Securities available for sale:
U.S. govt. sponsored agency securities	$	132,741,822	$	-	$	132,741,822	$	-
Residential mortgage-backed and related securities		116,452,374		-		116,452,374		-
Municipal securities		24,929,655		-		24,929,655		-
Other securities		2,064,016		779		2,063,237		-
Derivative instruments		450,651		-		450,651		-
	$	276,638,518	$	779	$	276,637,739	$	-
December 31, 2015:
Securities available for sale:
U.S. govt. sponsored agency securities	$	213,537,379	$	-	$	213,537,379	$	-
Residential mortgage-backed and related securities		80,670,135		-		80,670,135		-
Municipal securities		27,578,588		-		27,578,588		-
Other securities		1,648,880		411		1,648,469		-
Derivative instruments		856,024		-		856,024
	$	324,291,006	$	411	$	324,290,595	$	-

There were no transfers of assets or liabilities between Levels 1, 2, and 3 of the fair value hierarchy for the three months ended March 31, 2016 or 2015.

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 4 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).

27

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

Assets measured at fair value on a non-recurring basis comprise the following at March 31, 2016 and December 31, 2015:

			Fair Value Measurements at Reporting Date Using
	Fair Value		Level 1		Level 2		Level 3
March 31, 2016:
Impaired loans/leases	$	4,969,221	$	-	$	-	$	4,969,221
OREO		7,214,706		-		-		7,214,706
	$	12,183,927	$	-	$	-	$	12,183,927
December 31, 2015:
Impaired loans/leases	$	4,545,966	$	-	$	-	$	4,545,966
OREO		7,722,711		-		-		7,722,711
	$	12,268,677	$	-	$	-	$	12,268,677

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 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 client and client’s business.  

OREO 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 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 March 31, 2016		Fair Value December 31, 2015		Valuation Technique	Unobservable Input	Range
Impaired loans/leases	$	4,969,221	$	4,545,966	Appraisal of collateral	Appraisal adjustments	-10.00%	to	-50.00%
OREO		7,214,706		7,722,711	Appraisal of collateral	Appraisal adjustments	0.00%	to	-35.00%

28

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

For the impaired loans/leases and OREO, 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 months ended March 31, 2016 and 2015.

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 March 31, 2016					As of December 31, 2015
	Hierarchy	Carrying		Estimated			Carrying		Estimated
	Level	Value		Fair Value			Value		Fair Value
Cash and due from banks	Level 1	$	44,930,836	$	44,930,836		$	41,742,321	$	41,742,321
Federal funds sold	Level 2		15,740,000		15,740,000			19,850,000		19,850,000
Interest-bearing deposits at financial institutions	Level 2		41,489,171		41,489,171			36,313,965		36,313,965
Investment securities:
Held to maturity	Level 2		261,129,586		264,414,722			253,674,159		255,691,285
Available for sale	See Previous Table		276,187,867		276,187,867			323,434,982		323,434,982
Loans/leases receivable, net	Level 3		4,601,131		4,969,221			4,209,228		4,545,966
Loans/leases receivable, net	Level 2		1,841,827,043		(4,601,131	)		1,767,672,541		1,764,178,772
Derivative instruments	Level 2		450,651		450,651			856,024		856,024
Deposits:
Nonmaturity deposits	Level 2		1,586,207,114		1,586,207,114			1,516,599,081		1,516,599,081
Time deposits	Level 2		403,365,975		404,278,000			364,067,103		364,192,000
Short-term borrowings	Level 2		64,022,811		64,022,811			144,662,716		144,662,716
FHLB advances	Level 2		150,500,000		152,206,000			151,000,000		153,143,000
Other borrowings	Level 2		100,000,000		106,466,000			110,000,000		116,061,000
Junior subordinated debentures	Level 2		33,378,402		24,520,003			38,499,052		27,642,093

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Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

NOTE 7 – 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 comprised of the three subsidiary banks wholly owned by the Company: QCBT, CRBT, and RB&T. 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 as of and for the three months ended March 31, 2016 and 2015.

	Commercial Banking
	Quad City		Cedar Rapids		Rockford		Wealth					Intercompany			Consolidated
	Bank & Trust		Bank & Trust		Bank & Trust		Management		All Other			Eliminations			Total
Three Months Ended March 31, 2016
Total revenue	$	13,516,932	$	10,839,221	$	3,794,247	$	2,234,292	$	6,859,775		$	(6,919,935	)	$	30,324,532
Net interest income	$	10,961,447	$	7,024,988	$	2,911,974	$	-	$	(300,887	)	$	-		$	20,597,522
Net income	$	2,831,696	$	2,934,731	$	617,785	$	447,770	$	6,373,488		$	(6,831,981	)	$	6,373,489
Total assets	$	1,361,607,041	$	885,858,279	$	367,031,670	$	-	$	288,814,613		$	(262,638,349	)	$	2,640,673,254
Provision	$	1,222,985	$	550,000	$	300,000	$	-	$	-		$	-		$	2,072,985
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,421,531	$	-	$	-	$	-		$	-		$	1,421,531
Three Months Ended March 31, 2015
Total revenue	$	12,801,418	$	9,525,647	$	3,541,590	$	2,343,438	$	5,616,443		$	(5,705,028	)	$	28,123,508
Net interest income	$	9,275,038	$	6,358,297	$	2,634,082	$	-	$	(485,200	)	$	-		$	17,782,217
Net income	$	2,562,613	$	2,068,306	$	518,657	$	459,330	$	4,177,889		$	(5,608,906	)	$	4,177,889
Total assets	$	1,268,168,825	$	855,417,474	$	354,993,941	$	-	$	221,549,665		$	(208,470,899	)	$	2,491,659,006
Provision	$	882,456	$	600,000	$	228,000	$	-	$	-		$	-		$	1,710,456
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,621,043	$	-	$	-	$	-		$	-		$	1,621,043

30

Part I

Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

NOTE 8 – REGULATORY CAPITAL REQUIREMENTS

The Company (on a consolidated basis) and the 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 classification 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 table) of total common equity Tier 1 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 March 31, 2016 and December 31, 2015, that the Company and the subsidiary banks met all capital adequacy requirements to which they are subject.

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, Tier 1 leverage and common equity Tier 1 ratios as set forth in the following tables. The Company and the subsidiary banks’ actual capital amounts and ratios as of March 31, 2016 and December 31, 2015 are also presented in the following table (dollars in thousands). As of March 31, 2016 and December 31, 2015, each of the subsidiary banks met the requirements to be “well capitalized”.

						For Capital						To Be Well
						Adequacy Purposes						Capitalized Under
						With Capital						Prompt Corrective
	Actual					Conservation Buffer*						Action Provisions
	Amount		Ratio			Amount			Ratio			Amount			Ratio
As of March 31, 2016:
Company:
Total risk-based capital	$	282,957		12.68	%	$	192,416	>		8.625	%	$	223,091	>		10.0	%
Tier 1 risk-based capital		255,372		11.45	%		147,797	>		6.625			178,472	>		8.0
Tier 1 leverage		255,372		9.85	%		103,728	>		4.000			129,660	>		5.0
Common equity Tier 1		225,582		10.11	%		114,334	>		5.125			145,009	>		6.5
Quad City Bank & Trust:
Total risk-based capital	$	137,161		12.01	%	$	98,496	>		8.625	%	$	114,198	>		10.0	%
Tier 1 risk-based capital		124,668		10.92	%		75,656	>		6.625			91,358	>		8.0
Tier 1 leverage		124,668		9.12	%		54,680	>		4.000			68,351	>		5.0
Common equity Tier 1		124,668		10.92	%		58,526	>		5.125			74,229	>		6.5
Cedar Rapids Bank & Trust:
Total risk-based capital	$	106,576		13.98	%	$	65,729	>		8.625	%	$	76,208	>		10.0	%
Tier 1 risk-based capital		97,032		12.73	%		50,488	>		6.625			60,966	>		8.0
Tier 1 leverage		97,032		11.03	%		35,197	>		4.000			43,996	>		5.0
Common equity Tier 1		97,032		12.73	%		39,056	>		5.125			49,535	>		6.5
Rockford Bank & Trust:
Total risk-based capital	$	39,201		12.03	%	$	28,096	>		8.625	%	$	32,575	>		10.0	%
Tier 1 risk-based capital		35,125		10.78	%		21,581	>		6.625			26,060	>		8.0
Tier 1 leverage		35,125		9.52	%		14,758	>		4.000			18,447	>		5.0
Common equity Tier 1		35,125		10.78	%		16,695	>		5.125			21,174	>		6.5

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Item 1

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)-continued

	Actual				For Capital Adequacy Purposes*					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio			Amount		Ratio
As of December 31, 2015:
Company:
Total risk-based capital	$	280,273		13.11%	$	170,969	>	8.0%	%	$	213,711	>	10.0%
Tier 1 risk-based capital		253,891		11.88%		128,227	>	6.0			170,969	>	8.0
Tier 1 leverage		253,891		9.75%		104,163	>	4.0			130,203	>	5.0
Common equity Tier 1		220,800		10.33%		96,170	>	4.5			138,912	>	6.5
Quad City Bank & Trust:
Total risk-based capital	$	135,477		12.50%	$	86,726	>	8.0%	%	$	108,407	>	10.0%
Tier 1 risk-based capital		123,498		11.39%		65,044	>	6.0			86,726	>	8.0
Tier 1 leverage		123,498		8.87%		55,718	>	4.0			69,648	>	5.0
Common equity Tier 1		123,498		11.39%		48,783	>	4.5			70,465	>	6.5
Cedar Rapids Bank & Trust:
Total risk-based capital	$	105,285		14.39%	$	58,537	>	8.0%	%	$	73,172	>	10.0%
Tier 1 risk-based capital		96,118		13.14%		43,903	>	6.0			58,537	>	8.0
Tier 1 leverage		96,118		10.96%		35,079	>	4.0			43,848	>	5.0
Common equity Tier 1		96,118		13.14%		32,927	>	4.5			47,562	>	6.5
Rockford Bank & Trust:
Total risk-based capital	$	38,544		11.96%	$	25,772	>	8.0%	%	$	32,216	>	10.0%
Tier 1 risk-based capital		34,514		10.71%		19,329	>	6.0			25,772	>	8.0
Tier 1 leverage		34,514		9.59%		14,401	>	4.0			18,001	>	5.0
Common equity Tier 1		34,514		10.71%		14,497	>	4.5			20,940	>	6.5

*The minimums under Basel III phase in higher by .625% (the capital conservation buffer) annually until 2019. The fully phased-in minimums are 10.5% (Total risk-based capital), 8.5% (Tier 1 risk-based capital), and 7.0% (Common equity Tier 1). At December 31, 2015, the New Basel III minimums mirrored the minimums required for capital adequacy purposes. The first phase-in of the Basel III capital conservation buffer occured in 2016.

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Part I

Item 2

MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

INTRODUCTION

This section reviews the financial condition and results of operations of the Company and its subsidiaries as of and for the three months ending March 31, 2016. Some tables may include additional periods to comply with disclosure requirements or to illustrate trends. When reading this discussion, also refer to the Consolidated Financial Statements and related notes in this report. The page locations and specific sections and notes that are referred to are presented in the table of contents.

Additionally, a comprehensive list of the acronyms and abbreviations used throughout this discussion is included in Note 1 to the Consolidated Financial Statements.

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 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. Cedar Falls and Waterloo, Iowa and adjacent communities are served through three additional CRBT 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.

EXECUTIVE OVERVIEW

The Company reported net income of $6.4 million for the quarter ended March 31, 2016, and diluted EPS of $0.53. By comparison, for the quarter ended December 31, 2015, the Company reported net income of $6.8 million, and diluted EPS of $0.57. For the first quarter of 2015, the Company reported net income of $4.2 million, and diluted EPS of $0.52.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

The first quarter of 2016 was highlighted by several significant items:

● Net interest margin improvement of 18 basis points quarter-over-quarter and 34 basis points year-over-year;

● Loan and lease growth at an annualized rate of 16.9% through the first three months of the year; and

● Strong swap fee income and gains on the sale of government guaranteed portions of loans.

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

	For the three months ended
	March 31, 2016		December 31, 2015		March 31, 2015
Net income	$	6,373,489	$	6,784,823	$	4,177,889
Diluted earnings per common share	$	0.53	$	0.57	$	0.52
Weighted average common and common equivalent outstanding		11,953,949		11,926,038		8,097,444

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

	For the three months ended
	March 31, 2016		December 31, 2015		March 31, 2015
Net interest income	$	20,597,522	$	19,886,145	$	17,782,217
Provision expense		2,072,985		1,176,516		1,710,456
Noninterest income		6,822,473		6,177,904		6,221,778
Noninterest expense		16,954,498		15,839,417		17,204,161
Federal and state income tax		2,019,023		2,263,293		911,489
Net income	$	6,373,489	$	6,784,823	$	4,177,889

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

● Net interest income increased 4% compared to the fourth quarter of 2015 and increased 16% from the same period in 2015.

● Provision increased 76% compared to the fourth quarter of 2015. Provision increased 21% from the same period of 2015. Both increases were primarily due to the strong loan growth in the first quarter of 2016.

● Noninterest income increased 10% compared to the fourth quarter of 2015. Noninterest income increased 10% from the first quarter of 2015. Noninterest income has continued to increase due to swap fee income and gains on the sale of government guaranteed portions of loans (totaling $1.7 million for the quarter ended March 31, 2016 compared to $940 thousand and $797 thousand for the quarters ending December 31, 2015 and March 31, 2015, respectively).

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

● Noninterest expense increased 7% compared to the fourth quarter of 2015. The fourth quarter of 2015 included several one-time reductions in noninterest expenses due to the adjustment of certain accruals, primarily in data processing and occupancy expense. Noninterest expense decreased 1% from the first quarter of 2015.

● Federal and state income tax decreased slightly compared to the fourth quarter of 2015. Federal and state income tax increased significantly compared to the first quarter of 2015. See the Income Taxes section of this report for additional details.

LONG-TERM FINANCIAL GOALS

As previously stated, the Company has established certain financial goals by which it manages its business and measures its performance. The goals are periodically updated to reflect changes in business developments. While the Company is determined to work prudently to achieve these goals, there is no assurance that they will be met. Moreover, the Company’s ability to achieve these goals will be affected by the factors discussed under “Forward Looking Statements” as well as the factors detailed in the “Risk Factors” section included under Item 1A. of Part I of the Company’s Form 10-K. The Company’s long-term financial goals are as follows:

● Improve balance sheet efficiency by targeting a gross loans and leases to total assets ratio in the range of 70 – 75%;

● Improve profitability (measured by NIM and ROAA);

● Continue to improve asset quality by reducing NPAs to total assets to below 0.75% and maintain charge-offs as a percentage of average loans of under 0.25% annually;

● Reduce reliance on wholesale funding to less than 15% of total assets;

● Grow noninterest bearing deposits to more than 30% of total assets;

● Increase the commercial lease portfolio so that it represents 10% of total assets;

● Grow gains on sales of government guaranteed portions of loans and swap fee income to more than $4 million annually; and

● Grow wealth management segment net income by 15% annually.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

The following table shows the evaluation of the Company’s long-term financial goals.

				For the Quarter Ending
				March 31, 2016		December 31, 2015		March 31, 2015
Goal	Key Metric	Target***		(dollars in thousands)
Balance sheet efficiency	Gross loans and leases to total assets		70 - 75%		71%		69%		66%
Profitability	NIM		> 3.50%		3.59%		3.41%		3.25%
	ROAA		> 1.00%		0.98%		1.04%		0.67%
Asset quality	NPAs to total assets		< 0.75%		0.71%		0.74%		1.21%
	Net charge-offs to average loans**		< 0.25% annually		0.16%		0.12%		0.24%
Lower reliance on wholesale funding	Wholesale funding to total assets		< 15%		17%		20%		26%
Funding mix	Noninterest bearing deposits as a percentage of total assets		> 30%		24%		24%		23%
Commercial leasing	Leases as a percentage of total assets		10%		7%		7%		7%
Consistent, high quality noninterest income revenue streams	Gains on sales of government guaranteed portions of loans and swap fee income**		> $4 million annually		$6.9 million		$3.8 million		$4.6 million
	Grow wealth management segment net income**		> 15% annually		10%		5%		18%

*	Non-GAAP calculations are provided, when applicable. Refer to GAAP to non-GAAP reconciliation table on page 47 of this report.
**	Ratios and amounts provided for these measurements represent year-to-date actual amounts for the respective period, that are then annualized for comparison. Annual growth percentages are calculated with a base of December 31, 2015 and 2014 year-to-date totals.
***	Targets will be re-evaluated and adjusted as needed.

STRATEGIC DEVELOPMENTS

The Company took the following actions to support its corporate strategy and the long-term financial goals shown above.

● Loan and lease growth for the quarter was 4.2%, or an annualized rate of 16.9%. This exceeded the Company’s target organic growth rate of 10-12%. A majority of this growth was in the C&I and CRE loan categories. This loan and lease growth has continued to help move the loan and lease to total asset ratio upward to 71%, from 69% in the prior quarter and 66% a year ago.

● The Company intends to participate as an acquirer in the consolidation taking place to further boost ROAA and improve the Company's efficiency ratio.

● The Company continued to focus on reducing the NPAs to total assets ratio and decreased this ratio from 0.74% at December 31, 2015 to 0.71% at March 31, 2016. Although NPAs remained relatively flat from the prior quarter, the Company remains committed to further improving asset quality ratios in 2016.

● Management continued to focus on reducing the Company’s reliance on wholesale funding. The modest restructuring executed in the first quarter of 2016 (as described in Note 4 of the Consolidated Financial Statements) has further reduced the Company’s reliance on wholesale funding. Management continues to closely evaluate opportunities for continued reduction in wholesale funding.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

● Correspondent banking continues to be a core line of business for the Company. The Company is competitively positioned with experienced staff, software systems and processes to continue growing in the three states currently served – Iowa, Illinois and Wisconsin. The Company acts as the correspondent bank for 173 downstream banks with total noninterest bearing deposits of $321.5 million as of March 31, 2016. This line of business provides a strong source of noninterest bearing deposits, fee income and high-quality loan participations.

● The Company provides commercial leasing services through its wholly-owned subsidiary, m2 Lease Funds, which has lease specialists in Iowa, Wisconsin, Minnesota, South Carolina, Georgia, Florida, Colorado, Texas and Pennsylvania. Historically, this portfolio has been high yielding, with an average gross yield in 2016 approximating 8.3%. This portfolio has also shown strong asset quality throughout its history.

● SBA and USDA lending is a specialty lending area on which the Company has focused. Once these loans are originated, the government-guaranteed portion of the loan can be sold to the secondary market for premiums. The Company intends to make this a more significant and consistent source of noninterest income.

● As a result of the historically low interest rate environment, the Company is focused on executing interest rate swaps on select commercial loans. The interest rate swaps allow the commercial borrowers to pay a fixed interest rate while the Company receives a variable interest rate as well as an upfront fee dependent on the pricing. Management believes that these swaps help position the Company more favorably for rising rate environments. The Company 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.

● Wealth management is another core line of business for the Company and includes a full range of products, including trust services, brokerage and investment advisory services, asset management, estate planning and financial planning. As of March 31, 2016 the Company had $1.78 billion of total financial assets in trust (and related) accounts and $697 million of total financial assets in brokerage (and related) accounts. Continued growth in assets under management will help to drive trust and investment advisory fees. The Company offers trust and investment advisory services to the correspondent banks that it serves. As management focuses on growing fee income, expanding market share will continue to be a primary strategy.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

GAAP TO NON-GAAP RECONCILIATIONS

The following table presents certain non-GAAP financial measures related to the “tangible common equity to tangible assets ratio”, “core net income”, “core net income attributable to QCR Holdings, Inc. common stockholders”, “core earnings per common share” and “core return on average assets”. The table also reconciles the GAAP performance measures to the corresponding non-GAAP measures.

The tangible common equity to tangible assets ratio has been a focus for investors and management believes that this ratio may assist investors in analyzing the Company’s capital position without regard to the effects of intangible assets.

The table below also includes several “core” measurements of financial performance. The Company's management believes that these measures are important to investors as they exclude non-recurring income and expense items; therefore,they provide a better comparison for analysis and may provide a better indicator of future run-rates.

Non-GAAP financial measures have inherent limitations, are not required to be uniformly applied, and are not audited. Although these non-GAAP financial measures are frequently used by investors to evaluate a company, they have limitations as analytical tools and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

	As of
	March 31,			December 31,			March 31,
	2016			2015			2015
	(dollars in thousands, except per share data)
TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS RATIO
Stockholders' equity (GAAP)	$	235,143		$	225,886		$	150,996
Less: Intangible assets		4,645			4,694			4,844
Tangible common equity (non-GAAP)	$	230,498		$	221,192		$	146,152
Total assets (GAAP)	$	2,640,673		$	2,593,198		$	2,491,659
Less: Intangible assets		4,645			4,694			4,844
Tangible assets (non-GAAP)	$	2,636,028		$	2,588,504		$	2,486,815
Tangible common equity to tangible assets ratio (non-GAAP)		8.74	%		8.55	%		5.88	%

	For the Quarter ended
	March 31,			December 31,			March 31,
CORE NET INCOME	2016			2015			2015
Net income (GAAP)	$	6,373		$	6,785		$	4,178
Less nonrecurring items (after-tax*) :
Income:
Securities gains, net	$	233		$	211		$	274
Total nonrecurring income (non-GAAP)	$	233		$	211		$	274
Expense:
Losses on debt extinguishment, net	$	54		$	189		$	-
Accrual adjustments		-			(487	)		-
Total nonrecurring expense (non-GAAP)	$	54		$	(298	)	$	-
Core net income (non-GAAP)	$	6,194		$	6,276		$	3,904
CORE EARNINGS PER COMMON SHARE
Core net income (non-GAAP) (from above)	$	6,194		$	6,276		$	3,904
Weighted average common shares outstanding		11,793,620			11,744,495			7,975,910
Weighted average common and common equivalent shares outstanding		11,953,949			11,926,038			8,097,444
Core earnings per common share (non-GAAP):
Basic	$	0.53		$	0.53		$	0.49
Diluted	$	0.52		$	0.53		$	0.48
CORE RETURN ON AVERAGE ASSETS
Core net income (non-GAAP) (from above)	$	6,194		$	6,276		$	3,904
Average Assets	$	2,602,350		$	2,611,276		$	2,506,497
Core return on average assets (annualized) (non-GAAP)		0.95	%		0.96	%		0.62	%

* Nonrecurring items (after-tax) are calculated using an estimated effective tax rate of 35%.

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

NET INTEREST INCOME - (TAX EQUIVALENT BASIS)

Net interest income, on a tax equivalent basis, increased 16% to $21.9 million for the quarter ended March 31, 2016, compared to the same quarter of the prior year. Net interest income improved due to several factors:

● The Company’s strategy to redeploy funds from the taxable securities portfolio into higher yielding loans and leases;

● Organic loan and lease growth has been strong over the past twelve months, as evidenced by average gross loan/lease growth of 12% in that period; and

● The Company’s balance sheet restructuring and deleveraging strategy executed throughout 2015 and the first quarter of 2016.

A comparison of yields, spread and margin from the first quarter of 2016 to the first quarter of 2015 is as follows (on a tax equivalent basis):

● The average yield on interest-earning assets increased 12 basis points.

● The average cost of interest-bearing liabilities decreased 26 basis points.

● The net interest spread increased 38 basis points from 2.99% to 3.37%.

● The net interest margin improved 34 basis points from 3.25% to 3.59%.

The Company’s management closely monitors and manages NIM. From a profitability standpoint, an important challenge for the Company’s subsidiary banks and leasing company is the improvement of their net interest margins. Management continually addresses this issue with pricing and other balance sheet management strategies.

The Company continues to place an emphasis on shifting its balance sheet mix. With a stated goal of increasing loans/leases as a percentage of assets to a range of 70-75%, the Company funded its loan/lease growth with a mixture of core deposits and cash from the investment securities portfolio, including the targeted sales of securities with the cash redeployed into the loan portfolio, with an attempt to minimize any extension of duration and a significant increase in yield. Additionally, the Company has recognized net gains on these sales due to the current rate environment. As rates rise, the Company should also have less market volatility in the investment securities portfolio, as this becomes a smaller portion of the balance sheet.

The Company continues to monitor and evaluate both prepayment and debt restructuring opportunities within the wholesale funding portion of the balance sheet, as executing on such a strategy could potentially increase NIM at a much quicker pace than holding the debt until maturity.

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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 March 31,
	2016								2015
				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	$	17,232		$	13		0.30	%	$	13,688		$	4		0.12	%
Interest-bearing deposits at financial institutions		40,635			60		0.59	%		69,974			77		0.45	%
Investment securities (1)		550,371			4,685		3.42	%		625,834			4,492		2.91	%
Restricted investment securities		14,140			131		3.73	%		15,942			142		3.61	%
Gross loans/leases receivable (1) (2) (3)		1,833,950			19,956		4.38	%		1,635,705			18,304		4.54	%
Total interest earning assets	$	2,456,328		$	24,844		4.07	%	$	2,361,143		$	23,019		3.95	%
Noninterest-earning assets:
Cash and due from banks	$	45,891							$	44,284
Premises and equipment		37,747								38,079
Less allowance		(26,701	)							(23,417	)
Other		89,085								86,408
Total assets	$	2,602,350							$	2,506,497
LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing liabilities:
Interest-bearing deposits	$	925,246			615		0.27	%	$	787,350			442		0.23	%
Time deposits		399,604			675		0.68	%		374,365			630		0.68	%
Short-term borrowings		86,539			43		0.20	%		180,914			64		0.14	%
FHLB advances		128,436			442		1.38	%		206,476			1,444		2.84	%
Junior subordinated debentures		34,650			305		3.54	%		40,441			307		3.08	%
Other borrowings		101,738			825		3.26	%		149,014			1,232		3.35	%
Total interest-bearing liabilities	$	1,676,213		$	2,905		0.70	%	$	1,738,560		$	4,119		0.96	%
Noninterest-bearing demand deposits	$	655,206							$	585,490
Other noninterest-bearing liabilities		39,684								34,308
Total liabilities	$	2,371,103							$	2,358,358
Stockholders' equity		231,247								148,139
Total liabilities and stockholders' equity	$	2,602,350							$	2,506,497
Net interest income				$	21,939							$	18,900
Net interest spread							3.37	%							2.99	%
Net interest margin							3.59	%							3.25	%
Ratio of average interest-earning assets to average interest-bearing liabilities		146.54	%							135.81	%

(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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Analysis of Changes of Interest Income/Interest Expense

For the three months ended March 31, 2016

	Inc./(Dec.)			Components
	from			of Change (1)
	Prior Period			Rate			Volume
	2016 vs. 2015
	(dollars in thousands)
INTEREST INCOME
Federal funds sold	$	9		$	8		$	1
Interest-bearing deposits at financial institutions		(17	)		108			(125	)
Investment securities (2)		193			2,723			(2,530	)
Restricted investment securities		(11	)		26			(37	)
Gross loans/leases receivable (2) (3) (4)		1,651			(3,718	)		5,369
Total change in interest income	$	1,825		$	(853	)	$	2,678
INTEREST EXPENSE
Interest-bearing deposits	$	173		$	86		$	87
Time deposits		45			(20	)		65
Short-term borrowings		(21	)		107			(128	)
Federal Home Loan Bank advances		(1,002	)		(576	)		(426	)
Junior subordinated debentures		(2	)		181			(183	)
Other borrowings		(408	)		(34	)		(374	)
Total change in interest expense	$	(1,215	)	$	(256	)	$	(959	)
Total change in net interest income	$	3,040		$	(597	)	$	3,637

(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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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. Certain critical accounting policies are described below.

ALLOWANCE FOR LOAN AND LEASE LOSSES

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.

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 NPLs, 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 structures, 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 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 March 31, 2016 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.

OTHER–THAN-TEMPORARY IMPAIRMENT

The Company’s assessment of OTTI of its investment securities portfolio is another critical accounting policy due to the level of judgment required by management. Investment securities are evaluated to determine whether declines in fair value below their cost are other-than-temporary.

In estimating OTTI 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 Company's lack of intent to 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 OTTI should be read in conjunction with the Company’s financial statements and the accompanying notes presented elsewhere herein.

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RESULTS OF OPERATIONS

INTEREST INCOME

Interest income increased 7%, comparing the first quarter of 2016 to the same period of 2015.

A portion of this growth was the result of the Company’s strategy to redeploy funds from the securities portfolio into higher yielding loans and leases. In addition, organic loan and lease growth has been strong over the past twelve months.

Overall, the Company’s average earning assets increased 4%, comparing the first quarter of 2016 to the first quarter of 2015. During the same time period, average gross loans and leases increased 12%, while average investment securities decreased 12%.

The securities portfolio yield continued to increase (from 2.91% for the first quarter of 2015 to 3.42% for the first quarter of 2016) as the Company continued to sell low-yielding investments taking advantage of favorable market opportunities. Additionally, the Company continued to take actions to diversify its securities portfolio, including increasing its portfolio of tax-exempt municipal securities, in an effort to increase tax equivalent interest income without additional income tax expense.

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

INTEREST EXPENSE

Interest expense for the first quarter of 2016 decreased 29% from the first quarter of 2015. 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 the second quarter of 2015, the Company executed a balance sheet restructuring that is expected to save approximately $4.2 million of interest expense annually. Continued balance sheet restructurings in the fourth quarter of 2015 and first quarter of 2016 (refer to Note 4 of the Consolidated Financial Statements) have further reduced interest expense. Refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 for additional details.

The Company’s management intends to continue to shift the mix of funding from wholesale funds to core deposits, including noninterest-bearing deposits. Continuing this trend is expected to strengthen the Company’s franchise value, reduce funding costs, and increase fee income opportunities through deposit service charges.

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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 Company’s provision totaled $2.1 million for the first quarter of 2016, which was up $363 thousand, or 21%, from the same quarter of the prior year. The increase in provision expense was primarily due to strong loan growth in the first quarter of 2016 (16.9% annualized growth rate).

The Company had net charge-offs of $819 thousand for the first quarter of 2016 which, when coupled with the provision of $2.1 million, increased the Company’s allowance to $27.4 million at March 31, 2016. As of March 31, 2016, the Company’s allowance to total loans/leases was 1.46%, which was up slightly from 1.45% and 1.44% at December 31, 2015 and March 31, 2015, respectively.

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 months ended March 31, 2016 and 2015.

	Three Months Ended
	March 31, 2016		March 31, 2015		$ Change			% Change
Trust department fees	$	1,575,907	$	1,633,395	$	(57,488	)		(3.5	)%
Investment advisory and management fees		658,385		710,043		(51,658	)		(7.3	)
Deposit service fees		931,079		901,356		29,723			3.3
Gains on sales of residential real estate loans, net		60,386		86,140		(25,754	)		(29.9	)
Gains on sales of government guaranteed portions of loans, net		878,528		70,973		807,555			1,137.8
Swap fee income		856,958		726,207		130,751			18.0
Securities gains, net		358,480		421,066		(62,586	)		(14.9	)
Earnings on bank-owned life insurance		393,609		478,739		(85,130	)		(17.8	)
Debit card fees		307,651		238,000		69,651			29.3
Correspondent banking fees		302,130		319,621		(17,491	)		(5.5	)
Participation service fees on commercial loan participations		210,709		221,949		(11,240	)		(5.1	)
Fee income from early termination of leases		11,750		84,839		(73,089	)		(86.2	)
Credit card issuing fees		136,655		134,160		2,495			1.9
Other		140,246		195,290		(55,044	)		(28.2	)
Total noninterest income	$	6,822,473	$	6,221,778	$	600,695			9.7	%

In recent years, the Company has been successful in expanding its customer base, which has helped drive increases in fee income. Trust department fees continue to be a significant contributor to noninterest income; however, due to poor market conditions in the first quarter of 2016, trust department fees decreased 4% from the first quarter of 2015 to the first quarter of 2016. Income is generated primarily from fees charged based on assets under administration for corporate and personal trusts and for custodial services. The majority of the trust department fees are determined based on the value of the investments within the fully managed trusts. Additionally, the Company recently started offering trust operations services to correspondent banks. Fees are expected to grow as this new offering is rolled out.

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Management has placed a strong 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 leverage of and collaboration among existing resources (including the aforementioned trust department). Similar to trust department fees, these fees are largely determined based on the value of the investments managed. And, similar to the trust department, the Company has had some success in expanding its customer base. Due to poor market conditions in the first quarter of 2016, investment advisory fees decreased 7% from the first quarter of 2015 to the first quarter of 2016.

Deposit service fees expanded 3%, comparing the first quarter of 2016 to the same period in 2015. 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 decreased 30%, comparing the first quarter of 2016 to the first quarter of 2015. 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. Therefore, this area has become a much smaller contributor to overall noninterest income.

The Company’s gains on the sale of government-guaranteed portions of loans for the first quarter of 2016 were up significantly, compared to the first quarter of 2015, due to the strong demand for these types of loans in the first quarter of 2016. As one of its core strategies, the Company continues to leverage its expertise by taking advantage of programs offered by the SBA and the USDA. The Company’s portfolio of government-guaranteed loans has grown as a direct result of the Company’s strong expertise in SBA and USDA lending. In some cases, it is more beneficial for the Company to sell the government-guaranteed portion on the secondary market for a premium rather than retain the loans in the Company’s portfolio. Sales activity for government-guaranteed portions of loans tends to fluctuate depending on the demand for loans that fit the criteria for the government guarantee. Further, the size of the transactions can vary and, as the gain is determined as a percentage of the guaranteed amount, the resulting gain on sale can vary. 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. The Company has added additional talent and is executing on strategies in an effort to make this a more consistent and larger source of revenue. The pipelines for SBA and USDA lending are strong, and management believes that the Company will continue to post strong numbers in this category.

As a result of the sustained historically low interest rate environment, the Company was able to execute several interest rate swaps on select commercial loans. The interest rate swaps allow the commercial borrowers to pay a fixed interest rate while the Company receives a variable interest rate as well as an upfront fee dependent upon the pricing. Management believes that these swaps help position the Company 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. Swap fee income totaled $857 thousand in first quarter of 2016, as compared to $726 thousand in first quarter of 2015. Future levels of swap fee income are very dependent upon prevailing interest rates.

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Securities gains were $358 thousand for the first quarter of 2016, which were down from $421 thousand in the first quarter of the prior year. The Company took advantage of market opportunities by selling approximately $55.5 million of investments that were low-yielding during the quarter ended March 31, 2016. Proceeds were then used to purchase higher-yielding bonds with a modest duration extension and to fund loan and lease growth.

Earnings on BOLI decreased 18% from the first quarter of 2015 to the first quarter of 2016. There were no purchases of BOLI within the last twelve months. Notably, a small portion of the Company’s BOLI is variable in nature whereby the returns are determined by the performance of the equity market. The poor market performance in the first quarter of the 2016, therefore, contributed to the decrease in earnings on BOLI. Management intends to continue to review its BOLI investments to be consistent with policy and regulatory limits in conjunction with the rest of its earning assets in an effort to maximize returns while minimizing risk.

Debit card fees are the interchange fees paid on certain debit card customer transactions. Debit card fees increased 29% comparing the first quarter of 2016 to the first quarter of 2015. These fees can vary based on customer debit card usage, so fluctuations from period to period may occur. As an opportunity to maximize fees, the Company offers a deposit product with a modestly increased interest rate that incentivizes debit card activity.

Correspondent banking fees decreased 6%, comparing the first quarter of 2016 to the first quarter of 2015. As correspondent bank deposit balances rise, they receive a higher earnings credit, which then reduces the direct fees that the Company receives. Correspondent balances increased 10% in the past twelve months. Additionally, there was an earnings credit increase implemented in the first quarter of 2016. 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 loan growth as well as a steady source of fee income.    The Company now serves approximately 173 banks in Iowa, Illinois and Wisconsin.

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NONINTEREST EXPENSE

The following tables set forth the various categories of noninterest expense for the three months ended March 31, 2016 and 2015.

	Three Months Ended
	March 31, 2016		March 31, 2015		$ Change			% Change
Salaries and employee benefits	$	10,800,907	$	11,034,452	$	(233,545	)		(2.1	)%
Occupancy and equipment expense		1,826,988		1,794,171		32,817			1.8
Professional and data processing fees		1,447,413		1,470,517		(23,104	)		(1.6	)
FDIC insurance, other insurance and regulatory fees		634,365		719,057		(84,692	)		(11.8	)
Loan/lease expense		162,819		302,924		(140,105	)		(46.3	)
Net cost of operations of other real estate		102,183		76,851		25,332			33.0
Advertising and marketing		386,259		418,237		(31,978	)		(7.6	)
Postage and communications		217,090		248,956		(31,866	)		(12.8	)
Stationery and supplies		164,871		142,555		22,316			15.7
Bank service charges		415,931		337,458		78,473			23.3
Losses on debt extinguishment, net		83,197		-		83,197			100.0
Correspondent banking expense		176,989		175,703		1,286			0.7
Other		535,486		483,280		52,206			10.8
Total noninterest expense	$	16,954,498	$	17,204,161	$	(249,663	)		(1.5	)%

Management places a strong emphasis on overall cost containment and is committed to improving the Company’s general efficiency.

Salaries and employee benefits, which is the largest component of noninterest expense, decreased from the first quarter of 2015 to the first quarter of 2016 by 2%. This was primarily due to the acquisition of the noncontrolling interest in m2 Lease Funds in 2015, thus eliminating the related salary expense. This amount represented the former owner’s 20% interest in the earnings of m2, as further described in Note 23 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Additionally, management focused on taking steps to reduce salaries and employee benefits during the last half of 2015 and the first quarter of 2016, consistent with the Company’s stated goal of carefully managing noninterest expense growth.

Occupancy and equipment expense increased 2%, comparing the first quarter of 2016 to the same period of the prior year. The increased expense was mostly due to higher service contract-related expenses.

Professional and data processing fees decreased 2%, comparing the first quarter of 2016 to the same period in 2015. 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 decreased 12%, comparing the first quarter of 2016 to the first quarter of 2015. The decrease in expense year-over-year was due to a decrease in the assessment rate designated by the FDIC.

Loan/lease expense decreased 46%, comparing the first quarter of 2016 to the same quarter of 2015. The Company incurred elevated levels of expense during 2015 for certain existing NPLs in connection with the work-out of these loans. Generally, loan/lease expense has a direct relationship with the level of NPLs; however, it may deviate depending upon the individual NPLs. Management expects the level of expense to continue to decline in line with the declining trend in NPLs.

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Net cost of operations of other real estate includes gains/losses on the sale of OREO, write-downs of OREO and all income/expenses associated with OREO. Net costs of operations of other real estate totaled $102 thousand for the first quarter of 2016, compared to $77 thousand for the first quarter of 2015.

Bank service charges, a large portion of which includes indirect costs incurred to provide services to QCBT’s correspondent banking customer portfolio, increased 23% from the first quarter of 2015 to the first quarter of 2016. The increase was due, in large part, to the success QCBT has had in growing its correspondent banking customer portfolio.

In the first quarter of 2016, the Company incurred $83 thousand of losses on debt extinguishment, net. This amount includes $1.3 million of losses related to the prepayment of certain FHLB advances and whole structured repurchase agreements, as well as a $1.2 million gain recognized through the repurchase of trust preferred securities. For further details, please refer to Note 4 of the Consolidated Financial Statements.

Correspondent banking expense was relatively flat when comparing the first quarter of 2016 to the first quarter of 2015. These are direct costs incurred to provide services to QCBT’s correspondent banking customer portfolio, including safekeeping and cash management services.

INCOME TAXES

In the first quarter of 2016, the Company recognized tax expense of $2.0 million. Following is a reconciliation of the expected income tax expense to the income tax expense included in the consolidated statements of income for the three months ended March 31, 2016 and 2015.

	For the Three Months Ended March 31,
	2016						2015
				% of						% of
				Pretax						Pretax
	Amount			Income			Amount			Income
Computed "expected" tax expense	$	2,937,379			35.0	%	$	1,781,282			35.0	%
Tax exempt income, net		(966,318	)		(11.5	)		(826,116	)		(16.2	)
Bank-owned life insurance		(137,763	)		(1.6	)		(167,559	)		(3.3	)
State income taxes, net of federal benefit, current year		266,908			3.2			167,749			3.3
Other*		(81,183	)		(1.0	)		(43,867	)		(0.9	)
Federal and state income tax expense	$	2,019,023			24.1	%	$	911,489			17.9	%

The effective tax for the quarter ended March 31, 2016 was 24.1% which was an increase over the effective tax rate of 17.9% for the quarter ended March 31, 2015. The increase in pre-tax income was derived from a larger portion of taxable income which drove the increase in the effective tax rate. The Company’s tax-exempt income sources include interest income from tax-exempt municipal bonds and loans as well as earnings on BOLI. Tax-exempt income grew over the past year; however, the growth in taxable income far outpaced the growth in non-taxable income.

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FINANCIAL CONDITION

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

	As of
	March 31, 2016				December 31, 2015					March 31, 2015
	(dollars in thousands)
					Amount		%			Amount		%
Cash and due from banks	$	44,931	2	%	$	41,742		2	%	$	45,138		2	%
Federal funds sold and interest-bearing deposits		57,229	2	%		56,164		2	%		31,154		1	%
Securities		537,317	20	%		577,109		22	%		637,404		26	%
Net loans/leases		1,846,428	70	%		1,771,882		68	%		1,630,568		65	%
Other assets		154,768	6	%		146,301		6	%		147,395		6	%
Total assets	$	2,640,673	100	%	$	2,593,198		100	%	$	2,491,659		100	%
Total deposits	$	1,989,573	75	%	$	1,880,666		72	%	$	1,734,269		70	%
Total borrowings		347,901	13	%		444,162		17	%		569,404		23	%
Other liabilities		68,056	3	%		42,484		2	%		36,990		1	%
Total stockholders' equity		235,143	9	%		225,886		9	%		150,996		6	%
Total liabilities and stockholders' equity	$	2,640,673	100	%	$	2,593,198		100	%	$	2,491,659		100	%

During the first quarter of 2016, the Company’s total assets increased $47.5 million, or 2%, to a total of $2.6 billion, while total gross loans and leases grew $75.8 million, or 4%. The loan and lease growth was funded primarily by deposit growth and reductions in the securities portfolio. Deposits grew $108.9 million, or 6%, during the quarter. Borrowings decreased $22% in the first quarter to $347.9 million. Stockholders’ equity increased $9.3 million, or 4%, in the current quarter due to net income, as well as an increase in AOCI.

INVESTMENT SECURITIES 

The composition of the Company’s securities portfolio is managed to meet liquidity needs while prioritizing the impact on interest rate risk and maximizing return, while minimizing credit risk. The Company has further diversified the portfolio by decreasing U.S government sponsored agency securities and residential mortgage-backed securities, while increasing municipal securities. Of the latter, the large majority are privately placed tax-exempt debt issuances by municipalities located in the Midwest (with some in or near the Company’s existing markets) and require a thorough underwriting process before investment. Additionally, management will continue to diversify the portfolio with further growth strictly dictated by the pace of growth in deposits and loans. Management expects to continue 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).

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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
	March 31, 2016						December 31, 2015						March 31, 2015
	Amount			%			Amount			%			Amount			%
	(dollars in thousands)
U.S. govt. sponsored agency securities	$	132,742			42	%	$	213,537			37	%	$	299,180			47	%
Municipal securities		285,009			45	%		280,203			49	%		243,810			38	%
Residential mortgage-backed and related securities		116,452			13	%		80,670			14	%		91,363			14	%
Other securities		3,114			0	%		2,699			0	%		3,051			1	%
	$	537,317			100	%	$	577,109			100	%	$	637,404			100	%
Securities as a % of Total Assets		20.35	%					22.25	%					25.58	%
Net Unrealized Gains (Losses) as a % of Amortized Cost		1.05	%					(0.03%	)					0.31	%
Duration (in years)		5.2						5.1						4.3
Yield on investment securities (tax equivalent)		3.42	%					3.07	%					2.91	%

As a result of fluctuations in longer-term interest rates, the fair value of the Company’s securities portfolio went from a net unrealized loss position of (0.03%) of amortized cost at December 31, 2015 to a net unrealized gain position of 1.05% of amortized cost at March 31, 2016. 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 in the portfolio with OTTI. See the “Critical Accounting Policies” section of this report for further discussion on this evaluation.

The duration of the securities portfolio increased slightly due to the continued shift in mix. Duration was extended from the strong growth in longer term fixed rate municipal securities, but was partially offset by the duration shortening of agency and mortgage-backed securities portfolios resulting from targeted sales of longer duration investments and as the remaining agency portfolio rolled closer to maturities or call dates.

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 Act).

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

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LOANS/LEASES 

Total loans/leases grew 16.9% on an annualized basis during the first three months of 2016. The mix of the loan/lease types within the Company’s loan/lease portfolio is presented in the following table.

	As of
	March 31, 2016						December 31, 2015						March 31, 2015
	Amount			%			Amount			%			Amount			%
	(dollars in thousands)
C&I loans	$	682,057			37	%	$	648,160			36	%	$	534,885			32	%
CRE loans		766,159			41	%		724,369			40	%		709,682			43	%
Direct financing leases		172,774			9	%		173,656			10	%		167,244			10	%
Residential real estate loans		173,096			9	%		170,433			10	%		163,740			10	%
Installment and other consumer loans		71,842			4	%		73,669			4	%		71,902			5	%
Total loans/leases	$	1,865,928			100	%	$	1,790,287			100	%	$	1,647,453			100	%
Plus deferred loan/lease origination costs, net of fees		7,895						7,736						6,998
Less allowance		(27,395	)					(26,141	)					(23,883	)
Net loans/leases	$	1,846,428					$	1,771,882					$	1,630,568

As CRE loans have historically been the Company’s largest portfolio segment, management places a strong emphasis on monitoring the composition of the Company’s CRE loan portfolio. For example, management tracks the level of owner-occupied CRE loans relative to non owner-occupied loans. Owner-occupied loans are generally considered to have less risk. As of March 31, 2016 and December 31, 2015, respectively, approximately 34% and 35% of the CRE loan portfolio was owner-occupied.

Over the past several quarters, the Company has been successful in shifting the mix of its commercial loan portfolio by adding more C&I loans. C&I loans as a percentage of total loans and leases have grown from 32% at March 31, 2015 to 37% at the end of the current quarter.

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Following is a listing of significant industries within the Company’s CRE loan portfolio:

	As of March 31, 2016		As of December 31, 2015		As of March 31, 2015
	Amount	%	Amount	%	Amount	%
	(dollars in thousands)
Lessors of Nonresidential Buildings	$ 277,822	36%	$ 264,133	36%	$ 247,114	35%
Lessors of Residential Buildings	99,104	13%	89,189	12%	73,611	10%
Lessors of Other Real Estate Property	21,895	3%	22,009	3%	17,532	2%
Hotels	19,694	3%	19,228	3%	15,342	2%
Land Subdivision	18,467	2%	17,839	3%	15,814	2%
Nonresidential Property Managers	17,003	2%	10,500	1%	4,248	1%
Nursing Care Facilities	13,807	2%	17,288	2%	18,053	3%
New Car Dealers	11,430	2%	11,656	2%	15,693	2%
Other *	286,937	37%	272,527	38%	302,275	43%
Total CRE Loans	$ 766,159	100%	$ 724,369	100%	$ 709,682	100%

* “Other” consists of all other industries. None of these had concentrations greater than $15.0 million, or approximately 2% of total CRE loans in the most recent period presented.

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 meet 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 months ended March 31, 2016 and 2015 are presented as follows:

	Three Months Ended
	March 31, 2016			March 31, 2015
	(dollars in thousands)
Balance, beginning	$	26,141		$	23,074
Provisions charged to expense		2,073			1,710
Loans/leases charged off		(868	)		(1,107	)
Recoveries on loans/leases previously charged off		49			206
Balance, ending	$	27,395		$	23,883

The allowance was $27.4 million at March 31, 2016 compared to $26.1 million at December 31, 2015. Net charge-offs of loans/leases for the first quarter of 2016 were four basis points of average loans/leases.

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 $250 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 *	March 31, 2016			December 31, 2015			March 31, 2015
	(dollars in thousands)
Special Mention (Rating 6)	$	28,065		$	37,289		$	39,571
Substandard (Rating 7)		38,273			27,962			30,522
Doubtful (Rating 8)		-			-			-
	$	66,338		$	65,251		$	70,093
Criticized Loans **	$	66,338		$	65,251		$	70,093
Classified Loans ***	$	38,273		$	27,962		$	30,522
Criticized Loans as a % of Total Loans/Leases		3.54	%		3.63	%		4.24	%
Classified Loans as a % of Total Loans/Leases		2.04	%		1.56	%		1.84	%

* Amounts above include the government guaranteed portion, if any. For the calculation of allowance, 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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The Company experienced a slight increase in criticized loans during the first quarter of 2016, while classified loans increased 37% during this same period. The increase in classified loans during the first quarter of 2016 is primarily due to a limited number of relationship downgrades. The Company continues its strong focus on improving credit quality in an effort to limit NPLs.

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

	As of
	March 31, 2016			December 31, 2015			March 31, 2015
Allowance / Gross Loans/Leases		1.46	%		1.45	%		1.44	%
Allowance / Nonperforming Loans/Leases *		228.75	%		223.33	%		144.35	%

*NPLs consist of nonaccrual loans/leases, accruing loans/leases past due 90 days or more, and accruing TDRs.

Although management believes that the allowance at March 31, 2016 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.

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NONPERFORMING ASSETS 

The table below presents the amounts of NPAs.

	As of March 31,			As of December 31,			As of March 31,			As of December 31,
	2016			2015			2015			2014
	(dollars in thousands)
Nonaccrual loans/leases (1) (2)	$	10,772		$	10,648		$	14,529		$	18,588
Accruing loans/leases past due 90 days or more		47			3			668			93
TDRs - accruing		1,157			1,054			1,348			1,421
Total nonperforming loans/leases		11,976			11,705			16,545			20,102
OREO		6,680			7,151			13,245			12,768
Other repossessed assets		46			246			326			155
Total NPAs	$	18,702		$	19,102		$	30,116		$	33,025
NPLs to total loans/leases		0.64	%		0.65	%		1.00	%		1.23	%
NPAs to total loans/leases plus repossessed property		0.99	%		1.06	%		1.81	%		2.01	%
NPAs to total assets		0.71	%		0.74	%		1.21	%		1.31	%
Texas ratio (3)		7.23	%		7.62	%		17.52	%		20.26	%

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

(2) Includes TDRs of $1.6 million at March 31, 2016, $1.5 million at December 31, 2015, $4.1 million at March 31, 2015, and $5.0 million at December 31, 2014.

(3) Texas Ratio = Nonperforming Assets (excluding Other Repossessed Assets) / Tangible Equity plus Allowance. Texas 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 asset quality. Other companies may calculate this ratio differently.

NPAs at March 31, 2016 were $18.7 million, which were down $400 thousand from December 31, 2015, and down $11.4 million from March 31, 2015. In addition, the ratio of NPAs to total assets was 0.71% at March 31, 2016, which was down from 0.74% at December 31, 2015, and down from 1.21% at March 31, 2015.

The large majority of the NPAs consist of nonaccrual loans/leases, accruing TDRs, and OREO. For nonaccrual loans/leases and accruing TDRs, management has thoroughly reviewed these loans/leases and has provided specific allowances as appropriate.

OREO is carried at the lower of carrying amount or fair value less costs to sell.

Additionally, a portion of several of the nonaccrual loans are guaranteed by the government. At March 31, 2016, government guaranteed amounts of nonaccrual loans totaled approximately $694 thousand, or 6% of the $10.8 million of total nonaccrual loans/leases.

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

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DEPOSITS 

Deposits grew $108.9 million during the first quarter of 2016. The table below presents the composition of the Company’s deposit portfolio.

	As of
	March 31, 2016					December 31, 2015					March 31, 2015
	(dollars in thousands)
	Amount		%			Amount		%			Amount		%
Noninterest bearing demand deposits	$	641,859		32	%	$	615,292		33	%	$	582,510		34	%
Interest bearing demand deposits		916,455		46	%		886,294		47	%		794,327		46	%
Time deposits		331,786		17	%		309,974		16	%		279,660		16	%
Brokered deposits		99,473		5	%		69,106		4	%		77,772		4	%
	$	1,989,573		100	%	$	1,880,666		100	%	$	1,734,269		100	%

The Company has been successful in growing its noninterest bearing deposit portfolio over the past several years. During the first quarter, noninterest bearing demand deposits increased 4%.

Quarter-end balances can greatly fluctuate due to large customer and correspondent bank activity. Management will continue to focus on growing its noninterest bearing deposit portfolio, including its correspondent banking business at QCBT, as well as shifting the mix from brokered and other higher cost deposits to lower cost core deposits.

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 of Chicago or from their correspondent banks. The table below presents the composition of the Company’s short-term borrowings.

	As of
	March 31, 2016		December 31, 2015		March 31, 2015
	(dollars in thousands)
Overnight repurchase agreements with customers	$	52,153	$	73,873	$	150,796
Federal funds purchased		11,870		70,790		32,540
	$	64,023	$	144,663	$	183,336

As a result of their memberships in either the 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. 

The Company is in the process of transitioning its overnight repurchase agreements with customers into a comparable interest bearing demand deposit product that offers full FDIC insurance.  This transition freed up securities that were previously pledged as collateral to the overnight repurchase agreements with customers.  This enhanced the Company’s ability to further rotate its earning assets from securities to loans.

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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
	March 31, 2016		December 31, 2015		March 31, 2015
	(dollars in thousands)
Structured repos	$	100,000	$	110,000	$	130,000
Term note		-		-		16,450
Series A subordinated notes		-		-		2,660
	$	100,000	$	110,000	$	149,110

It is management’s intention to continue to reduce its reliance on wholesale funding, including FHLB advances, structured repos, and brokered 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 and/or brokered deposits 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.

	March 31, 2016				December 31, 2015
			Weighted				Weighted
			Average				Average
Maturity:	Amount Due		Interest Rate		Amount Due		Interest Rate
Year ending December 31:	(dollar amounts in thousands)
2016	$	171,735		0.59%	$	125,038		0.59%
2017		39,055		1.61		49,055		2.07
2018		47,233		2.64		57,283		2.87
2019		46,950		3.21		50,089		3.14
2020		45,000		2.66		45,000		2.66
Thereafter		-		0.00		3,641		2.51
Total Wholesale Funding	$	349,973		1.60%	$	330,106		1.89%

During the first three months of 2016, wholesale funding increased $19.9 million. While the Company increased overall wholesale funding, the increase was all short-term in nature, as 2016 maturities increased $46.7 million, while all future year maturities saw a decrease due to brokered CDs that were called and prepayments of certain FHLB advances and structured repos (as further described in Note 4 of the Consolidated Financial Statements).

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STOCKHOLDERS’ EQUITY

The table below presents the composition of the Company’s stockholders’ equity.

	As of
	March 31, 2016			December 31, 2015			March 31, 2015
	Amount			Amount			Amount
	(dollars in thousands)
Common stock	$	11,815		$	11,761		$	8,113
Additional paid in capital		124,058			123,283			62,149
Retained earnings		98,868			92,966			82,055
AOCI		402			(2,124	)		285
Less: Treasury stock		-			-			(1,606	)
Total stockholders' equity	$	235,143		$	225,886		$	150,996
TCE* / TA		8.74	%		8.55	%		5.88	%

*TCE is defined as total common stockholders’ equity excluding goodwill and other intangibles. This ratio is a non-GAAP financial measure.

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 $103.8 million during the first quarter of 2016 and $129.5 million during 2015. 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, wholesale structured repurchase agreements, 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 March 31, 2016, the subsidiary banks had 33 lines of credit totaling $359.9 million, of which $12.9 million was secured and $347.0 million was unsecured. At March 31, 2016, $359.9 million was available.

At December 31, 2015, the subsidiary banks had 32 lines of credit totaling $346.6 million, of which $14.6 million was secured and $332.0 million was unsecured. At December 31, 2015, $286.6 million was available as $60.0 million was utilized for short-term borrowing needs at QCBT.

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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 a $40.0 million secured revolving credit note with a variable interest rate and a maturity of June 30, 2016. At March 31, 2016, the Company had not borrowed on this revolving credit note and had the full amount available.

The Company currently has $321.5 million in correspondent banking deposits spread over 173 relationships. While the Company feels that these funds are very stable, there is the potential for large fluctuations that can impact liquidity. Seasonality and the liquidity needs of these correspondent banks can impact balances. Management closely monitors these fluctuations and runs stress scenarios to measure the impact on liquidity and interest rate risk with various levels of correspondent deposit run-off.

Investing activities used cash of $14.5 million during the first three months of 2016 and provided $40.5 million for the same period of 2015. Proceeds from calls, maturities, paydowns, and sales of securities were $109.5 million for the first three months of 2016, compared to $142.8 million for the same period of 2015. Purchases of securities used cash of $45.1 million for the first three months of 2016, compared to $124.6 million for the same period of 2015. The net increase in loans/leases used cash of $76.3 million for the first three months of 2016 compared to $25.7 million for the same period of 2015.

Financing activities provided cash of $12.6 million for the first three months of 2015, and used cash of $38.7 million for same period of 2015. Net increases in deposits totaled $108.9 million for the first three months of 2016, compared to $54.6 million for the same period of 2015. During the first three months of 2016, the Company’s short-term borrowings decreased $80.6 million, while they decreased $85.0 million for the same period of 2015. During the first three months of 2016, the Company used $25.2 million to prepay select FHLB advances and other borrowings.

Total cash provided by operating activities was $5.1 million for the first three months of 2016 and 2015.

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

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MANAGEMENT'S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS - continued

The following table presents the details of the trust preferred securities outstanding as of March 31, 2016 and December 31, 2015.

Name	Date Issued	Amount Outstanding 3/31/16		Amount Outstanding 12/31/15		Interest Rate	Interest Rate as of 3/31/16		Interest Rate as of 12/31/2015
QCR Holdings Statutory Trust II	February 2004	$	10,310,000	$	10,310,000	2.85% over 3-month LIBOR		3.46%		3.18%
QCR Holdings Statutory Trust III	February 2004		8,248,000		8,248,000	2.85% over 3-month LIBOR		3.46%		3.18%
QCR Holdings Statutory Trust IV	May 2005		-		5,155,000	1.80% over 3-month LIBOR		N/A		2.12%
QCR Holdings Statutory Trust V	February 2006		10,310,000		10,310,000	1.55% over 3-month LIBOR		2.17%		1.87%
Community National Statutory Trust II	September 2004		3,093,000		3,093,000	2.17% over 3-month LIBOR		2.79%		2.74%
Community National Statutory Trust III	March 2007		3,609,000		3,609,000	1.75% over 3-month LIBOR		2.38%		2.26%
		$	35,570,000	$	40,725,000	Weighted Average Rate		2.92%		2.60%

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 March 31, 2016, the remaining discount was $2.2 million.

QCR Holdings Statutory Trust IV was extinguished in the first quarter of 2016. Refer to Note 4 of the Consolidated Financial Statements for additional information.

On August 27, 2015, the Company filed a universal shelf registration statement on Form S-3 with the SEC. This registration statement, declared effective by the SEC on October 5, 2015, 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 $100.0 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 the 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. Refer to Note 8 of the Consolidated Financial Statements for additional information regarding regulatory capital.

61

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” sections included under Item 1A of Part I of the Company’s Annual Report on Form 10-K and Item 1A of Part II of this report. 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.

62

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 an 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.

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.

63

Part I

Item 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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 December 31, 2015	As of March 31, 2015	As of December 31, 2014
100 basis point downward shift	-10.0%	-2.1%	-2.6%	-1.7%
200 basis point upward shift	-10.0%	-2.7%	-3.4%	-5.0%
300 basis point upward shock	-25.0%	-7.1%	-7.3%	-11.9%

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 December 31, 2015 (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).

In 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 interest rate caps purchased essentially set a ceiling to the interest rate paid on the $30.0 million of short-term FHLB advances that are being hedged, minimizing the interest rate risk associated with rising interest rates. The Company will continue to analyze and evaluate similar transactions as an alternative and cost effective way to mitigate interest rate risk.

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

64

Part I

Item 4

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) and 15d-15(e) promulgated under the Exchange Act of 1934) as of March 31, 2016. 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.

65

Part II

QCR HOLDINGS, INC. AND SUBSIDIARIES

PART II - OTHER INFORMATION

Item 1          Legal Proceedings                                        

There are no material pending legal proceedings to which the Company or any of its subsidiaries is a party other than ordinary routine litigation incidental to their respective businesses.

Item 1A      Risk Factors

There have been no material changes in the risk factors applicable to the Company from those disclosed in Part I, Item 1.A. “Risk Factors,” in the Company’s 2015 Annual Report on Form 10-K. Please refer to that section of the Company’s Form 10-K for disclosures regarding the risks and uncertainties related to the Company’s business.

Item 2          Unregistered Sales of Equity Securities and Use of Proceeds                         

None 

Item 3          Defaults Upon Senior Securities                         

None

Item 4          Mine Safety Disclosures

Not applicable

Item 5          Other Information                                        

None

66

Part II

QCR HOLDINGS, INC. AND SUBSIDIARIES

PART II - OTHER INFORMATION - continued

Item 6           Exhibits

4.1 First Amendment to Amended and Restated Rights Agreement, dated February 11, 2016, between QCR Holdings, Inc. and Quad City Bank & Trust Company, as rights agent (incorporated by reference to Exhibit 4.1 of the Company’s Current Report on Form 8-K filed on February 18, 2016).

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 March 31, 2016 and December 31, 2015; (ii) Consolidated Statements of Income for the three months ended March 31, 2016 and March 31, 2015; (iii) Consolidated Statements of Comprehensive Income for the three months ended March 31, 2016 and March 31, 2015; (iv) Consolidated Statements of Changes in Stockholders’ Equity for the three months ended March 31, 2016 and March 31, 2015; (v) Consolidated Statements of Cash Flows for the three months ended March 31, 2016 and March 31, 2015; and (vi) Notes to the Consolidated Financial Statements.

67

SIGNATURES

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

QCR HOLDINGS, INC.

(Registrant)

Date May 6, 2016	/s/ Douglas M. Hultquist
	Douglas M. Hultquist, President
	Chief Executive Officer
Date May 6, 2016	/s/ Todd A. Gipple
	Todd A. Gipple, Executive Vice President
	Chief Operating Officer
	Chief Financial Officer
Date May 6, 2016	/s/ Elizabeth A. Grabin
	Elizabeth A. Grabin, Vice President
	Controller & Director of Financial Reporting
	Principal Accounting Officer

68

EX-31.1

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:     May 6, 2016	/s/ Douglas M. Hultquist
	Douglas M. Hultquist
	Chief Executive Officer

EX-31.2

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:     May 6, 2016	/s/ Todd A. Gipple
	Todd A. Gipple
	Chief Operating Officer
	Chief Financial Officer

EX-32.1

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 March 31, 2016 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

May 6, 2016

EX-32.2

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 March 31, 2016 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

May 6, 2016

XML

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	QCR HOLDINGS INC
Trading Symbol	qcrh
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		11,823,268
Amendment Flag	false
Entity Central Index Key	0000906465
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1

XML

Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks	$ 44,930,836	$ 41,742,321
Federal funds sold	15,740,000	19,850,000
Interest-bearing deposits at financial institutions	41,489,171	36,313,965
Securities held to maturity, at amortized cost	261,129,586	253,674,159
Securities available for sale, at fair value	276,187,867	323,434,982
Total securities	537,317,453	577,109,141
Loans receivable held for sale	765,385	565,850
Loans/leases receivable held for investment	1,873,058,231	1,797,456,825
Gross loans/leases receivable	1,873,823,616	1,798,022,675
Less allowance for estimated losses on loans/leases	(27,395,442)	(26,140,906)
Net loans/leases receivable	1,846,428,174	1,771,881,769
Bank-owned life insurance	55,879,264	55,485,655
Premises and equipment, net	38,142,454	37,350,352
Restricted investment securities	15,321,175	14,835,925
Other real estate owned, net	6,680,283	7,150,658
Goodwill	3,222,688	3,222,688
Core deposit intangible	1,421,531	1,471,409
Other assets	34,100,225	26,784,392
Total assets	2,640,673,254	2,593,198,275
Deposits:
Noninterest-bearing	641,858,800	615,292,211
Interest-bearing	1,347,714,289	1,265,373,973
Total deposits	1,989,573,089	1,880,666,184
Short-term borrowings	64,022,811	144,662,716
Federal Home Loan Bank advances	150,500,000	151,000,000
Other borrowings	100,000,000	110,000,000
Junior subordinated debentures	33,378,402	38,499,052
Other liabilities	68,056,233	42,484,573
Total liabilities	2,405,530,535	2,367,312,525
March 2016 and December 2015 - No shares issued or outstanding
Common stock, $1 par value; shares authorized 20,000,000	11,814,911	11,761,083
December 2015 - 11,761,083 shares issued and outstanding
Additional paid-in capital	124,057,965	123,282,851
Retained earnings	98,868,261	92,965,645
Accumulated other comprehensive income (loss):
Securities available for sale	1,455,351	(1,324,408)
Interest rate cap derivatives	(1,053,769)	(799,421)
Total stockholders' equity	235,142,719	225,885,750
Total liabilities and stockholders' equity	$ 2,640,673,254	$ 2,593,198,275

XML

Consolidated Balance Sheets (Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Preferred stock, par value (in Dollars per share)	$ 1	$ 1
Preferred stock, shares authorized	250,000	250,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in Dollars per share)	$ 1	$ 1
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	11,814,911	11,761,083
Common stock, shares outstanding	11,814,911	11,761,083

XML

Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Interest and dividend income:
Loans/leases, including fees	$ 19,700,370	$ 18,004,519
Securities:
Taxable	1,356,203	1,942,765
Nontaxable	2,242,015	1,730,568
Interest-bearing deposits at financial institutions	60,317	77,054
Restricted investment securities	130,564	142,318
Federal funds sold	12,590	4,506
Total interest and dividend income	23,502,059	21,901,730
Interest expense:
Deposits	1,289,798	1,072,445
Short-term borrowings	43,066	64,025
Federal Home Loan Bank advances	441,704	1,443,715
Other borrowings	825,083	1,231,886
Junior subordinated debentures	304,886	307,442
Total interest expense	2,904,537	4,119,513
Net interest income	20,597,522	17,782,217
Provision for loan/lease losses	2,072,985	1,710,456
Net interest income after provision for loan/lease losses	18,524,537	16,071,761
Noninterest income:
Trust department fees	1,575,907	1,633,395
Investment advisory and management fees	658,385	710,043
Deposit service fees	931,079	901,356
Gains on sales of residential real estate loans, net	60,386	86,140
Gains on sales of government guaranteed portions of loans, net	878,528	70,973
Swap fee income	856,958	726,207
Securities gains, net	358,480	421,066
Earnings on bank-owned life insurance	393,609	478,739
Debit card fees	307,651	238,000
Correspondent banking fees	302,130	319,621
Participation service fees on commercial loan participations	210,709	221,949
Fee income from early termination of leases	11,750	84,839
Credit card issuing fees	136,655	134,160
Other	140,246	195,290
Total noninterest income	6,822,473	6,221,778
Noninterest expense:
Salaries and employee benefits	10,800,907	11,034,452
Occupancy and equipment expense	1,826,988	1,794,171
Professional and data processing fees	1,447,413	1,470,517
FDIC insurance, other insurance and regulatory fees	634,365	719,057
Loan/lease expense	162,819	302,924
Net cost of operations of other real estate	102,183	76,851
Advertising and marketing	386,259	418,237
Postage and communications	217,090	248,956
Stationery and supplies	164,871	142,555
Bank service charges	415,931	337,458
Losses on debt extinguishment, net	83,197
Correspondent banking expense	176,989	175,703
Other	535,486	483,280
Total noninterest expense	16,954,498	17,204,161
Net income before income taxes	8,392,512	5,089,378
Federal and state income tax expense	2,019,023	911,489
Net income	$ 6,373,489	$ 4,177,889
Basic earnings per common share (in Dollars per share)	$ 0.54	$ 0.52
Diluted earnings per common share (in Dollars per share)	$ 0.53	$ 0.52
Weighted average common shares outstanding (in Shares)	11,793,620	7,975,910
Weighted average common and common equivalent shares outstanding (in Shares)	11,953,949	8,097,444
Cash dividends declared per common share (in Dollars per share)	$ 0.04

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net income	$ 6,373,489	$ 4,177,889
Unrealized gains on securities available for sale:
Unrealized holding gains arising during the period before tax	4,863,718	4,402,337
Less reclassification adjustment for gains included in net income before tax	358,480	421,066
	4,505,238	3,981,271
Unrealized losses on interest rate cap derivatives:
Unrealized holding losses arising during the period before tax	(405,373)	(372,384)
Less reclassification adjustment for ineffectiveness and caplet amortization before tax	15,438	901
	(420,811)	(373,285)
Other comprehensive income, before tax	4,084,427	3,607,986
Tax expense	1,559,016	1,387,121
Other comprehensive income, net of tax	2,525,411	2,220,865
Comprehensive income attributable to QCR Holdings, Inc.	$ 8,898,900	$ 6,398,754

XML

Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock [Member]	Total
Balance, beginning at Dec. 31, 2014	$ 8,074,443	$ 61,668,968	$ 77,876,824	$ (1,935,216)	$ (1,606,510)	$ 144,078,509
Balance, ending at Mar. 31, 2015	8,113,040	62,149,073	82,054,713	285,649	$ (1,606,510)	150,995,965
Net income			4,177,889			4,177,889
Other comprehensive loss, net of tax				2,220,865		2,220,865
Proceeds from issuance of common stock, Employee Stock Purchase Plan	5,679	82,641				88,320
Proceeds from issuance of common stock, stock options exercised	9,688	94,728				104,416
Stock-based compensation expense		367,775				367,775
Tax benefit of nonqualified stock options exercised		15,651				15,651
Restricted stock awards	26,502	(26,502)
Exchange of common stock, restricted stock vested	(3,272)	(54,188)				(57,460)
Balance, beginning at Dec. 31, 2015	11,761,083	123,282,851	92,965,645	(2,123,829)		225,885,750
Balance, ending at Mar. 31, 2016	11,814,911	124,057,965	98,868,261	401,582		235,142,719
Net income			6,373,489			6,373,489
Other comprehensive loss, net of tax				$ 2,525,411		2,525,411
Common cash dividends declared, $0.04 per share			$ (470,873)			(470,873)
Proceeds from issuance of common stock, Employee Stock Purchase Plan	5,054	94,560				99,614
Proceeds from issuance of common stock, stock options exercised	30,331	382,639				412,970
Stock-based compensation expense		382,761				382,761
Tax benefit of nonqualified stock options exercised		22,508				22,508
Restricted stock awards	22,382	(22,382)
Exchange of common stock, restricted stock vested	$ (3,939)	$ (84,972)				$ (88,911)

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Common cash dividends declared, per share (in Dollars per share)	$ 0.04
Common Stock [Member]
Proceeds from issuance of common stock, Employee Stock Purchase Plan, Shares	5,054	5,679
Proceeds from issuance of common stock, stock options exercised, shares	30,331	9,688
Exchange of common stock, restricted stock vested, shares	3,939	3,272

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 6,373,489	$ 4,177,889
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	766,069	745,268
Provision for loan/lease losses	2,072,985	1,710,456
Stock-based compensation expense	382,761	367,775
Deferred compensation expense accrued	318,796	437,600
Losses (gains) on other real estate owned, net	(7,740)	28,953
Amortization of premiums on securities, net	294,286	214,427
Securities gains, net	(358,480)	(421,066)
Loans originated for sale	(18,901,618)	(6,647,937)
Proceeds on sales of loans	19,640,997	6,569,050
Gains on sales of residential real estate loans	(60,386)	(86,140)
Gains on sales of government guaranteed portions of loans	(878,528)	(70,973)
Losses on debt extinguishment, net	83,197
Amortization of core deposit intangible	49,878	49,878
Accretion of acquisition fair value adjustments, net	(44,169)	(178,380)
Increase in cash value of bank-owned life insurance	(393,609)	(478,739)
Decrease (increase) in other assets	(9,295,660)	486,879
Increase (decrease) in other liabilities	5,079,831	(1,840,279)
Net cash provided by operating activities	5,122,099	5,064,661
CASH FLOWS FROM INVESTING ACTIVITIES
Net decrease in federal funds sold	4,110,000	32,745,000
Net decrease (increase) in interest-bearing deposits at financial institutions	(5,175,206)	18,215,699
Proceeds from sales of other real estate owned	494,115	331,151
Activity in securities portfolio:
Purchases	(45,070,780)	(124,568,138)
Calls, maturities and redemptions	47,573,001	83,794,967
Paydowns	6,428,508	4,073,422
Sales	55,526,851	54,971,056
Activity in restricted investment securities:
Purchases	(485,250)	(146,300)
Redemptions		3,800
Net increase in loans/leases originated and held for investment	(76,346,066)	(25,689,344)
Purchase of premises and equipment	(1,558,171)	(3,197,547)
Net cash provided by (used in) investing activities	(14,502,998)	40,533,766
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposit accounts	108,903,515	54,603,339
Net decrease in short-term borrowings	(80,639,905)	(85,015,951)
Activity in Federal Home Loan Bank advances:
Term advances		5,000,000
Maturities	(7,000,000)	(5,000,000)
Net change in short-term and overnight advances	16,500,000	(7,000,000)
Prepayments	(10,524,197)
Activity in other borrowings:
Maturities and scheduled principal payments		(1,175,000)
Prepayments	(10,759,000)
Retirement of junior subordinated debentures	(3,955,000)
Payment of cash dividends on common stock	(468,583)	(315,955)
Cash and due from banks, beginning	41,742,321	38,235,019
Cash and due from banks, ending	44,930,836	45,138,266
Supplemental disclosure of cash flow information, cash payments for:
Interest	2,944,839	4,103,459
Income/franchise taxes	2,464,300	1,618,064
Supplemental schedule of noncash investing activities:
Change in accumulated other comprehensive income, unrealized gains on securities available for sale and derivative instruments, net	2,525,411	2,220,865
Exchange of shares of common stock in connection with payroll taxes for restricted stock and in connection with stock options exercised	(88,911)	(57,460)
Tax benefit of nonqualified stock options exercised	22,508	15,651
Transfers of loans to other real estate owned	16,000	837,782
Due to broker for purchases of securities	(20,104,340)
Common Stock Offering 2 [Member]
Activity in other borrowings:
Proceeds from issuance of common stock, net	512,584	208,387
Net cash provided by (used in) financing activities	12,569,414	(38,695,180)
Net increase in cash and due from banks	$ 3,188,515	$ 6,903,247

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Note 1 - Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2016

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, 2015, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 11, 2016. 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. GAAP 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 as of and for the three months ended March 31, 2016, are not necessarily indicative of the results expected for the year ending December 31, 2016.

The acronyms and abbreviations identified below are used throughout this Quarterly Report on Form 10-Q. It may be helpful to refer back to this page as you read this report.

Allowance: Allowance for estimated losses on loans/leases	HTM: Held to maturity
AOCI: Accumulated other comprehensive income (loss)	m2: m2 Lease Funds, LLC
AFS: Available for sale	MD&A: Management's Discussion & Analysis
ASU: Accounting Standards Update	NIM: Net interest margin
BOLI: Bank-owned life insurance	NPA: Nonperforming asset
Caps: Interest rate cap derivatives	NPL: Nonperforming loan
Community National: Community National Bancorporation	OREO: Other real estate owned
CNB: Community National Bank	OTTI: Other-than-temporary impairment
CRBT: Cedar Rapids Bank & Trust Company	Provision: Provision for loan/lease losses
CRE: Commercial real estate	QCBT: Quad City Bank & Trust Company
C&I: Commercial and industrial	RB&T: Rockford Bank & Trust Company
Dodd-Frank Act: Dodd-Frank Wall Street Reform and	ROAA: Return on Average Assets
Consumer Protection Act	SBA: U.S. Small Business Administration
EPS: Earnings per share	SEC: Securities and Exchange Commission
Exchange Act: Securities Exchange Act of 1934, as amended	TA: Tangible assets
FASB: Financial Accounting Standards Board	TCE: Tangible common equity
FDIC: Federal Deposit Insurance Corporation	TDRs: Troubled debt restructurings
FHLB: Federal Home Loan Bank	The Company: QCR Holdings, Inc.
FRB: Federal Reserve Bank of Chicago	USDA: U.S. Department of Agriculture
GAAP: Generally Accepted Accounting Principles

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries which include three commercial banks: QCBT, CRBT, and RB&T. All are state-chartered commercial banks. The Company also engages in direct financing lease contracts through m2 Lease Funds, a wholly-owned subsidiary of QCBT. All material intercompany transactions and balances have been eliminated in consolidation.

Recent accounting developments: 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 was originally effective for the Company on January 1, 2017, however, FASB issued ASU 2015-14 which defers the effective date in order to provide additional time for both public and private entities to evaluate the impact. ASU 2014-09 will now be effective for the Company on January 1, 2018 and it is not expected to have a significant impact on the Company’s consolidated financial statements.

In February 2015, FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis. ASU 2015-02 is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The ASU focuses on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The ASU also reduces the number of consolidation models from four to two. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and adoption did not have a significant impact on the Company’s consolidated financial statements.

In January 2016, FASB issued ASU 2016-01, Financial Instruments – Overall. ASU 2016-01 makes targeted adjustments to GAAP by eliminating the available for sale classification for equity securities and requiring equity investments to be measured at fair value with changes in fair value recognized in net income. The standard also requires public business entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes. The standard clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. It also requires an entity to present separately (within other comprehensive income) the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, the standard eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is in the process of analyzing the impact of adoption.

In February 2016, the FASB issued ASU 2016-02, Leases. Under ASU 2016-02, lessees will be required to recognize a lease liability measured on a discounted basis and a right-of-use asset for all leases (with the exception of short-term leases). Lessor accounting is largely unchanged under ASU 2016-02. However, the definition of initial direct costs was updated to include only initial direct costs that are considered incremental. This change in definition will change the manner in which the Company recognizes the costs associated with originating leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for all entities. The Company is in the process of analyzing the impact of adoption on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation. ASU 2016-09 aims to simplify the accounting for companies that issue share-based payment awards to their employees. Simplification includes the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows of share-based payment awards. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is in the process of analyzing the impact of adoption on the Company’s consolidated financial statements.

FASB recently reached an updated decision on the effective date for its yet to be issued standard regarding measurement of credit losses on financial instruments. Under the standard it is expected that impairment of the Company’s loans/leases receivable will be measured using the current expected credit loss model, which will entail day-one recognition of life-of-asset expected losses. The standard is expected to be issued during 2016 and will be effective for the Company for the fiscal year beginning January 1, 2020. Management has not yet analyzed the impact of adoption.

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

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Note 2 - Investment Securities

3 Months Ended

Mar. 31, 2016

Investment Holdings [Abstract]

Investment Holdings [Text Block]

NOTE 2 – INVESTMENT SECURITIES

The amortized cost and fair value of investment securities as of March 31, 2016 and December 31, 2015 are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2016
Securities held to maturity:
Municipal securities	$	260,079,586	$	4,143,965	$	(858,829	)	$	263,364,722
Other securities		1,050,000		-		-			1,050,000
	$	261,129,586	$	4,143,965	$	(858,829	)	$	264,414,722
Securities available for sale:
U.S. govt. sponsored agency securities	$	132,080,737	$	786,623	$	(125,538	)	$	132,741,822
Residential mortgage-backed and related securities		116,012,771		761,091		(321,488	)		116,452,374
Municipal securities		24,113,773		839,125		(23,243	)		24,929,655
Other securities		1,637,366		428,027		(1,377	)		2,064,016
	$	273,844,647	$	2,814,866	$	(471,646	)	$	276,187,867
December 31, 2015:
Securities held to maturity:
Municipal securities	$	252,624,159	$	3,190,558	$	(1,173,432	)	$	254,641,285
Other securities		1,050,000		-		-			1,050,000
	$	253,674,159	$	3,190,558	$	(1,173,432	)	$	255,691,285
Securities available for sale:
U.S. govt. sponsored agency securities	$	216,281,416	$	104,524	$	(2,848,561	)	$	213,537,379
Residential mortgage-backed and related securities		81,442,479		511,095		(1,283,439	)		80,670,135
Municipal securities		26,764,981		872,985		(59,378	)		27,578,588
Other securities		1,108,124		540,919		(163	)		1,648,880
	$	325,597,000	$	2,029,523	$	(4,191,541	)	$	323,434,982

The Company’s HTM municipal securities consist largely of private issues of municipal debt. The large majority of the municipalities are located within the Midwest. 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 March 31, 2016 and December 31, 2015, 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
March 31, 2016:
Securities held to maturity:
Municipal securities	$	16,874,982	$	(669,283	)	$	7,610,345	$	(189,546	)	$	24,485,327	$	(858,829	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	24,512,886	$	(76,931	)	$	4,946,100	$	(48,607	)	$	29,458,986	$	(125,538	)
Residential mortgage-backed and related securities		18,687,105		(81,719	)		29,708,984		(239,769	)		48,396,089		(321,488	)
Municipal securities		1,157,233		(2,185	)		849,972		(21,058	)		2,007,205		(23,243	)
Other securities		498,623		(1,377	)		-		-			498,623		(1,377	)
	$	44,855,847	$	(162,212	)	$	35,505,056	$	(309,434	)	$	80,360,903	$	(471,646	)
December 31, 2015:
Securities held to maturity:
Municipal securities	$	14,803,408	$	(294,438	)	$	19,927,581	$	(878,994	)	$	34,730,989	$	(1,173,432	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	112,900,327	$	(1,397,591	)	$	64,476,661	$	(1,450,970	)	$	177,376,988	$	(2,848,561	)
Residential mortgage-backed and related securities		40,356,921		(730,466	)		19,836,637		(552,973	)		60,193,558		(1,283,439	)
Municipal securities		2,220,800		(31,807	)		848,329		(27,571	)		3,069,129		(59,378	)
Other securities		411		(163	)		-		-			411		(163	)
	$	155,478,459	$	(2,160,027	)	$	85,161,627	$	(2,031,514	)	$	240,640,086	$	(4,191,541	)

At March 31, 2016, the investment portfolio included 465 securities. Of this number, 58 securities were in an unrealized loss position. The aggregate losses of these securities totaled less than 1% of the total amortized cost of the portfolio. Of these 58 securities, 21 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 March 31, 2016 and December 31, 2015, equity securities represented less than 1% of the total portfolio.

The Company did not recognize OTTI on any debt or equity securities for the three months ended March 31, 2016 and 2015.   

All sales of securities for the three months ended March 31, 2016 and 2015, respectively, were from securities identified as AFS. Information on proceeds received, as well as pre-tax gross gains and losses from sales on those securities are as follows:

	Three Months Ended
	March 31, 2016			March 31, 2015
Proceeds from sales of securities	$	55,526,851		$	54,971,056
Pre-tax gross gains from sales of securities		515,515			573,684
Pre-tax gross losses from sales of securities		(157,035	)		(152,618	)

The amortized cost and fair value of securities as of March 31, 2016 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 prepaid without any penalties. Therefore, these securities are not included in the maturity categories in the following table. “Other securities” AFS 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	$	4,206,670	$	4,213,609
Due after one year through five years		20,737,843		20,889,363
Due after five years		236,185,073		239,311,750
	$	261,129,586	$	264,414,722
Securities available for sale:
Due in one year or less	$	1,884,460	$	1,895,137
Due after one year through five years		68,198,829		69,027,450
Due after five years		86,111,221		86,748,890
	$	156,194,510	$	157,671,477
Residential mortgage-backed and related securities		116,012,771		116,452,374
Other securities		1,637,366		2,064,016
	$	273,844,647	$	276,187,867

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	$	135,926,431	$	137,921,557
Securities available for sale:
U.S. govt. sponsored agency securities		65,969,684		65,976,489
Municipal securities		15,335,099		15,728,025
	$	81,304,783	$	81,704,514

As of March 31, 2016, the Company’s municipal securities portfolios were comprised of general obligation bonds issued by 82 issuers with fair values totaling $72.7 million and revenue bonds issued by 95 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $215.6 million. The Company held investments in general obligation bonds in 19 states, including four states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in nine states, including four states in which the aggregate fair value exceeded $5.0 million.

As of December 31, 2015, the Company’s municipal securities portfolios were comprised of general obligation bonds issued by 82 issuers with fair values totaling $67.8 million and revenue bonds issued by 92 issuers, primarily consisting of states, counties, towns, villages and school districts with fair values totaling $214.4 million. The Company held investments in general obligation bonds in 19 states, including four states in which the aggregate fair value exceeded $5.0 million. The Company held investments in revenue bonds in nine 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:

March 31, 2016:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		15	$	19,974,438	$	20,309,435	$	1,353,962
Illinois		10		12,665,888		13,014,865		1,301,487
Missouri		12		7,393,378		7,488,699		624,058
North Dakota		6		16,403,026		16,616,824		2,769,471
Other		39		14,954,651		15,233,176		390,594
Total general obligation bonds		82	$	71,391,381	$	72,662,999	$	886,134

December 31, 2015:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		15	$	19,974,939	$	20,247,108	$	1,349,807
Illinois		9		10,928,700		11,264,348		1,251,594
North Dakota		5		10,890,000		11,050,235		2,210,047
Missouri		12		7,924,800		7,986,856		665,571
Other		41		16,965,393		17,229,485		420,231
Total general obligation bonds		82	$	66,683,832	$	67,778,032	$	826,561

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:

March 31, 2016:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Missouri		42	$	76,260,706	$	77,142,220	$	1,836,720
Iowa		27		74,013,142		75,274,793		2,787,955
Indiana		17		39,342,789		39,675,326		2,333,843
Kansas		4		12,022,852		12,116,209		3,029,052
Other		5		11,162,489		11,422,830		2,284,566
Total revenue bonds		95	$	212,801,978	$	215,631,378	$	2,269,804

December 31, 2015:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Missouri		41	$	78,593,590	$	79,015,378	$	1,927,204
Iowa		26		70,773,660		71,659,410		2,756,131
Indiana		17		40,018,381		40,210,320		2,365,313
Kansas		3		11,748,679		11,821,055		3,940,352
Other		5		11,570,998		11,735,678		2,347,136
Total revenue bonds		92	$	212,705,308	$	214,441,841	$	2,330,890

Both general obligation and revenue bonds are diversified across many issuers. As of March 31, 2016 and December 31, 2015, the Company did not hold general obligation or revenue bonds of any single issuer, the aggregate book or market value of which exceeded 4% of the Company’s stockholders’ equity. Of the general obligation and revenue bonds in the Company’s portfolio, the majority are unrated bonds that represent small, private issuances. All unrated bonds were underwritten according to loan underwriting standards and have an average loan risk rating of 2, indicating very high quality. Additionally, many of these bonds are funding essential municipal services such as water, sewer, education, and 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 March 31, 2016, 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 March 31, 2016, the Company’s standard monitoring of its municipal securities portfolio had not uncovered any facts or circumstances resulting in significantly different credit 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 3 - Loans/Leases Receivable

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

Financing Receivables [Text Block]

NOTE 3 – LOANS/LEASES RECEIVABLE

The composition of the loan/lease portfolio as of March 31, 2016 and December 31, 2015 is presented as follows:

	As of March 31, 2016			As of December 31, 2015
C&I loans	$	682,056,782		$	648,159,892
CRE loans
Owner-occupied CRE		261,730,899			252,523,164
Commercial construction, land development, and other land		37,970,546			49,083,844
Other non owner-occupied CRE		466,457,920			422,761,757
		766,159,365			724,368,765
Direct financing leases *		172,774,048			173,655,605
Residential real estate loans **		173,096,209			170,432,530
Installment and other consumer loans		71,842,268			73,669,493
		1,865,928,672			1,790,286,285
Plus deferred loan/lease origination costs, net of fees		7,894,944			7,736,390
		1,873,823,616			1,798,022,675
Less allowance		(27,395,442	)		(26,140,906	)
	$	1,846,428,174		$	1,771,881,769
* Direct financing leases:
Net minimum lease payments to be received	$	194,005,721		$	195,476,230
Estimated unguaranteed residual values of leased assets		1,131,634			1,165,706
Unearned lease/residual income		(22,363,307	)		(22,986,331	)
		172,774,048			173,655,605
Plus deferred lease origination costs, net of fees		6,493,124			6,594,582
		179,267,172			180,250,187
Less allowance		(3,287,230	)		(3,395,088	)
	$	175,979,942		$	176,855,099

*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, which is combined with 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 months ended March 31, 2016 and 2015.

**Includes residential real estate loans held for sale totaling $765,385 and $565,850 as of March 31, 2016, and December 31, 2015, respectively.

The aging of the loan/lease portfolio by classes of loans/leases as of March 31, 2016 and December 31, 2015 is presented as follows:

	As of March 31, 2016
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
C&I	$	674,901,078		$	1,038,410		$	469,292		$	-		$	5,648,002		$	682,056,782
CRE
Owner-Occupied CRE		260,963,128			109,210			-			-			658,561			261,730,899
Commercial Construction, Land Development, and Other Land		37,779,180			-			-			-			191,366			37,970,546
Other Non Owner-Occupied CRE		464,239,777			898,733			212,884			-			1,106,526			466,457,920
Direct Financing Leases		169,792,466			977,630			207,496			-			1,796,456			172,774,048
Residential Real Estate		168,865,064			3,133,246			-			46,256			1,051,643			173,096,209
Installment and Other Consumer		70,864,000			645,537			12,776			162			319,793			71,842,268
	$	1,847,404,693		$	6,802,766		$	902,448		$	46,418		$	10,772,347		$	1,865,928,672
As a percentage of total loan/lease portfolio		99.01	%		0.36	%		0.05	%		0.00	%		0.58	%		100.00	%

	As of December 31, 2015
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
C&I	$	640,725,241		$	1,636,860		$	5,816		$	-		$	5,791,975		$	648,159,892
CRE
Owner-Occupied CRE		251,612,752			182,949			-			-			727,463			252,523,164
Commercial Construction, Land Development, and Other Land		48,890,040			-			-			-			193,804			49,083,844
Other Non Owner-Occupied CRE		420,819,874			614,732			219,383			-			1,107,768			422,761,757
Direct Financing Leases		170,021,289			1,490,818			439,314			2,843			1,701,341			173,655,605
Residential Real Estate		166,415,118			2,800,589			200,080			-			1,016,743			170,432,530
Installment and Other Consumer		73,134,197			412,052			14,127			-			109,117			73,669,493
	$	1,771,618,511		$	7,138,000		$	878,720		$	2,843		$	10,648,211		$	1,790,286,285
As a percentage of total loan/lease portfolio		98.96	%		0.40	%		0.05	%		0.00	%		0.59	%		100.00	%

NPLs by classes of loans/leases as of March 31, 2016 and December 31, 2015 are presented as follows:

	As of March 31, 2016
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases *		Accruing TDRs		Total NPLs		Percentage of Total NPLs
C&I	$	-	$	5,648,002	$	172,093	$	5,820,095		48.60	%
CRE
Owner-Occupied CRE		-		658,561		-		658,561		5.50	%
Commercial Construction, Land Development, and Other Land		-		191,366		-		191,366		1.60	%
Other Non Owner-Occupied CRE		-		1,106,526		-		1,106,526		9.24	%
Direct Financing Leases		-		1,796,456		456,592		2,253,048		18.81	%
Residential Real Estate		46,256		1,051,643		398,337		1,496,236		12.49	%
Installment and Other Consumer		162		319,793		129,808		449,763		3.76	%
	$	46,418	$	10,772,347	$	1,156,830	$	11,975,595		100.00	%

*Nonaccrual loans/leases included $1,576,057 of TDRs, including $1,217,243 in C&I loans, $191,366 in CRE loans, $37,750 in direct financing leases, $115,671 in residential real estate loans, and $14,027 in installment loans.

	As of December 31, 2015
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases **		Accruing TDRs		Total NPLs		Percentage of Total NPLs
C&I	$	-	$	5,791,975	$	173,087	$	5,965,062		50.96	%
CRE
Owner-Occupied CRE		-		727,463		-	$	727,463		6.22	%
Commercial Construction, Land Development, and Other Land		-		193,804		-	$	193,804		1.66	%
Other Non Owner-Occupied CRE		-		1,107,768		-	$	1,107,768		9.46	%
Direct Financing Leases		2,843		1,701,341		-	$	1,704,184		14.56	%
Residential Real Estate		-		1,016,743		402,044	$	1,418,787		12.12	%
Installment and Other Consumer		-		109,117		478,625	$	587,742		5.02	%
	$	2,843	$	10,648,211	$	1,053,756	$	11,704,810		100.00	%

**Nonaccrual loans/leases included $1,533,657 of TDRs, including $1,164,423 in C&I loans, $193,804 in CRE loans, $42,098 in direct financing leases, $119,305 in residential real estate loans, and $14,027 in installment loans.

Changes in the allowance by portfolio segment for the three months ended March 31, 2016 and 2015, respectively, are presented as follows:

	Three Months Ended March 31, 2016
	C&I			CRE		Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	10,484,080		$	9,375,117	$	3,395,088		$	1,790,150		$	1,096,471		$	26,140,906
Provisions charged to expense		739,831			715,450		478,245			62,656			76,803			2,072,985
Loans/leases charged off		(243,566	)		-		(600,938	)		(16,184	)		(7,596	)		(868,284	)
Recoveries on loans/leases previously charged off		11,634			-		14,836			-			23,365			49,835
Balance, ending	$	10,991,979		$	10,090,567	$	3,287,231		$	1,836,622		$	1,189,043		$	27,395,442

	Three Months Ended March 31, 2015
	C&I			CRE			Direct Financing Leases			Residential Real Estate		Installment and Other Consumer			Total
Balance, beginning	$	8,833,832		$	8,353,386		$	3,359,400		$	1,525,952	$	1,001,795		$	23,074,365
Provisions charged to expense		388,641			835,894			403,452			71,802		10,667			1,710,456
Loans/leases charged off		(200,301	)		(351,076	)		(547,492	)		-		(8,794	)		(1,107,663	)
Recoveries on loans/leases previously charged off		154,992			-			12,098			-		39,025			206,115
Balance, ending	$	9,177,164		$	8,838,204		$	3,227,458		$	1,597,754	$	1,042,693		$	23,883,273

The allowance by impairment evaluation and by portfolio segment as of March 31, 2016 and December 31, 2015 is presented as follows:

	As of March 31, 2016
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	2,168,454		$	82,296		$	483,193		$	199,498		$	246,413		$	3,179,854
Allowance for nonimpaired loans/leases		8,823,525			10,008,271			2,804,038			1,637,124			942,630			24,215,588
	$	10,991,979		$	10,090,567		$	3,287,231		$	1,836,622		$	1,189,043		$	27,395,442
Impaired loans/leases	$	5,178,446		$	1,946,451		$	2,253,046		$	1,496,236		$	449,600		$	11,323,779
Nonimpaired loans/leases		676,878,336			764,212,914			170,521,002			171,599,973			71,392,668			1,854,604,893
	$	682,056,782		$	766,159,365		$	172,774,048		$	173,096,209		$	71,842,268		$	1,865,928,672
Allowance as a percentage of impaired loans/leases		41.87	%		4.23	%		21.45	%		13.33	%		54.81	%		28.08	%
Allowance as a percentage of nonimpaired loans/leases		1.30	%		1.31	%		1.64	%		0.95	%		1.32	%		1.31	%
Total allowance as a percentage of total loans/leases		1.61	%		1.32	%		1.90	%		1.06	%		1.66	%		1.46	%

	As of December 31, 2015
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	2,592,270		$	76,934		$	306,193		$	185,801		$	143,089		$	3,304,287
Allowance for nonimpaired loans/leases		7,891,810			9,298,183			3,088,895			1,604,349			953,382			22,836,619
	$	10,484,080		$	9,375,117		$	3,395,088		$	1,790,150		$	1,096,471		$	26,140,906
Impaired loans/leases	$	5,286,482		$	2,029,035		$	1,701,341		$	1,418,787		$	587,742		$	11,023,387
Nonimpaired loans/leases		642,873,410			722,339,730			171,954,264			169,013,743			73,081,751			1,779,262,898
	$	648,159,892		$	724,368,765		$	173,655,605		$	170,432,530		$	73,669,493		$	1,790,286,285
Allowance as a percentage of impaired loans/leases		49.04	%		3.79	%		18.00	%		13.10	%		24.35	%		29.98	%
Allowance as a percentage of nonimpaired loans/leases		1.23	%		1.29	%		1.80	%		0.95	%		1.30	%		1.28	%
Total allowance as a percentage of total loans/leases		1.62	%		1.29	%		1.96	%		1.05	%		1.49	%		1.45	%

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 three months ended March 31, 2016 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:
C&I	$	286,508	$	477,450	$	-	$	347,369	$	1,824	$	1,824
CRE
Owner-Occupied CRE		242,887		336,661		-		244,824		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		-		-		-
Other Non Owner-Occupied CRE		1,512,198		1,512,198		-		1,545,334		-		-
Direct Financing Leases		1,314,779		1,314,779		-		1,176,588		11,603		11,603
Residential Real Estate		585,186		624,387		-		585,981		1,038		1,038
Installment and Other Consumer		47,480		47,480		-		212,392		-		-
	$	3,989,038	$	4,312,955	$	-	$	4,112,488	$	14,465	$	14,465
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	4,891,938	$	4,895,777	$	2,168,454	$	4,885,096	$	-	$	-
CRE
Owner-Occupied CRE		-		-		-		-		-		-
Commercial Construction, Land Development, and Other Land		191,366		203,366		82,296		192,585		-		-
Other Non Owner-Occupied CRE		-		-		-		-		-		-
Direct Financing Leases		938,267		938,267		483,193		800,606		-		-
Residential Real Estate		911,050		946,628		199,498		871,531		1,958		1,958
Installment and Other Consumer		402,120		402,120		246,413		306,279		1,500		1,500
	$	7,334,741	$	7,386,158	$	3,179,854	$	7,056,097	$	3,458	$	3,458
Total Impaired Loans/Leases:
C&I	$	5,178,446	$	5,373,227	$	2,168,454	$	5,232,465	$	1,824	$	1,824
CRE
Owner-Occupied CRE		242,887		336,661		-		244,824		-		-
Commercial Construction, Land Development, and Other Land		191,366		203,366		82,296		192,585		-		-
Other Non Owner-Occupied CRE		1,512,198		1,512,198		-		1,545,334		-		-
Direct Financing Leases		2,253,046		2,253,046		483,193		1,977,194		11,603		11,603
Residential Real Estate		1,496,236		1,571,015		199,498		1,457,512		2,996		2,996
Installment and Other Consumer		449,600		449,600		246,413		518,671		1,500		1,500
	$	11,323,779	$	11,699,113	$	3,179,854	$	11,168,585	$	17,923	$	17,923

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 March 31, 2015 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:
C&I	$	331,612	$	425,636	$	-	$	1,352,320	$	1,849	$	1,849
CRE
Owner-Occupied CRE		173,131		269,354		-		189,621		-		-
Commercial Construction, Land Development, and Other Land		171,186		511,204		-		171,186		-		-
Other Non Owner-Occupied CRE		290,577		1,528,456		-		1,102,174		-		-
Direct Financing Leases		665,735		665,735		-		1,009,487		4,109		4,109
Residential Real Estate		981,608		1,017,186		-		1,089,298		483		483
Installment and Other Consumer		726,050		726,050		-		698,685		-		-
	$	3,339,899	$	5,143,621	$	-	$	5,612,771	$	6,441	$	6,441
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	4,969,554	$	4,973,392	$	2,513,023	$	4,938,115	$	-	$	-
CRE
Owner-Occupied CRE		454,980		454,980		15,154		468,590		-		-
Commercial Construction, Land Development, and Other Land		197,225		209,225		46,570		197,526		-		-
Other Non Owner-Occupied CRE		4,208,602		4,655,235		767,113		4,335,446		-		-
Direct Financing Leases		457,463		457,463		283,485		380,548		-		-
Residential Real Estate		864,957		864,957		180,160		728,349		2,830		2,830
Installment and Other Consumer		611,096		611,096		267,430		552,663		2,260		2,260
	$	11,763,877	$	12,226,348	$	4,072,935	$	11,601,237	$	5,090	$	5,090
Total Impaired Loans/Leases:
C&I	$	5,301,166	$	5,399,028	$	2,513,023	$	6,290,435	$	1,849	$	1,849
CRE
Owner-Occupied CRE		628,111		724,334		15,154		658,211		-		-
Commercial Construction, Land Development, and Other Land		368,411		720,429		46,570		368,712		-		-
Other Non Owner-Occupied CRE		4,499,179		6,183,691		767,113		5,437,620		-		-
Direct Financing Leases		1,123,198		1,123,198		283,485		1,390,035		4,109		4,109
Residential Real Estate		1,846,565		1,882,143		180,160		1,817,647		3,313		3,313
Installment and Other Consumer		1,337,146		1,337,146		267,430		1,251,348		2,260		2,260
	$	15,103,776	$	17,369,969	$	4,072,935	$	17,214,008	$	11,531	$	11,531

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, 2015 are presented as follows:

Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired Loans/Leases with No Specific Allowance Recorded:
C&I	$	234,636	$	346,072	$	-
CRE
Owner-Occupied CRE		256,761		350,535		-
Commercial Construction, Land Development, and Other Land		-		228,818		-
Other Non Owner-Occupied CRE		1,578,470		1,578,470		-
Direct Financing Leases		871,884		871,884		-
Residential Real Estate		613,486		649,064		-
Installment and Other Consumer		377,304		377,304		-
	$	3,932,541	$	4,402,147	$	-
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	5,051,846	$	5,055,685	$	2,592,270
CRE
Owner-Occupied CRE		-		-		-
Commercial Construction, Land Development, and Other Land		193,804		205,804		76,934
Other Non Owner-Occupied CRE		-		-		-
Direct Financing Leases		829,457		829,457		306,193
Residential Real Estate		805,301		805,301		185,801
Installment and Other Consumer		210,438		210,438		143,089
	$	7,090,846	$	7,106,685	$	3,304,287
Total Impaired Loans/Leases:
C&I	$	5,286,482	$	5,401,757	$	2,592,270
CRE
Owner-Occupied CRE		256,761		350,535		-
Commercial Construction, Land Development, and Other Land		193,804		434,622		76,934
Other Non Owner-Occupied CRE		1,578,470		1,578,470		-
Direct Financing Leases		1,701,341		1,701,341		306,193
Residential Real Estate		1,418,787		1,454,365		185,801
Installment and Other Consumer		587,742		587,742		143,089
	$	11,023,387	$	11,508,832	$	3,304,287

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

For C&I and CRE loans, the Company’s credit quality indicator consists of 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 March 31, 2016 and December 31, 2015:

	As of March 31, 2016
			CRE
					Non Owner-Occupied
Internally Assigned Risk Rating	C&I		Owner-Occupied CRE		Commercial Construction, Land Development, and Other Land		Other CRE		Total		As a % of Total
Pass (Ratings 1 through 5)	$	647,678,612	$	250,031,858	$	35,892,683	$	448,275,195	$	1,381,878,348		95.42	%
Special Mention (Rating 6)		12,346,445		3,376,191		1,780,000		10,562,085		28,064,721		1.94	%
Substandard (Rating 7)		22,031,725		8,322,850		297,863		7,620,640		38,273,078		2.64	%
Doubtful (Rating 8)		-		-		-		-		-		-
	$	682,056,782	$	261,730,899	$	37,970,546	$	466,457,920	$	1,448,216,147		100.00	%

	As of March 31, 2016
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total		As a % of Total
Performing	$	170,521,000	$	171,599,973	$	71,392,505	$	413,513,478		98.99	%
Nonperforming		2,253,048		1,496,236		449,763		4,199,047		1.01	%
	$	172,774,048	$	173,096,209	$	71,842,268	$	417,712,525		100.00	%

	As of December 31, 2015
			CRE
					Non Owner-Occupied
Internally Assigned Risk Rating	C&I		Owner-Occupied CRE		Commercial Construction, Land Development, and Other Land		Other CRE		Total		As a % of Total
Pass (Ratings 1 through 5)	$	616,200,797	$	238,119,608	$	46,929,876	$	406,027,442	$	1,307,277,723		95.24	%
Special Mention (Rating 6)		18,031,845		8,630,658		1,780,000		8,846,286		37,288,789		2.72	%
Substandard (Rating 7)		13,927,250		5,772,898		373,968		7,888,029		27,962,145		2.04	%
Doubtful (Rating 8)		-		-		-		-		-		-
	$	648,159,892	$	252,523,164	$	49,083,844	$	422,761,757	$	1,372,528,657		100.00	%

	As of December 31, 2015
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total		As a % of Total
Performing	$	171,951,421	$	169,013,743	$	73,081,751	$	414,046,915		99.11	%
Nonperforming		1,704,184		1,418,787		587,742		3,710,713		0.89	%
	$	173,655,605	$	170,432,530	$	73,669,493	$	417,757,628		100.00	%

*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 TDRs.

As of March 31, 2016 and December 31, 2015, TDRs totaled $2,732,887 and $2,587,413, respectively.

For each class of financing receivable, the following presents the number and recorded investment of TDRs, by type of concession, that were restructured during the three months ended March 31, 2016. There were no TDRs that were restructured during the three months ended March 31, 2015. 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 March 31, 2016
Classes of Loans/Leases	Number of Loans / Leases		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Specific Allowance
CONCESSION - Extension of Maturity
Direct Financing Leases		4	$	410,653	$	410,653	$	-
		4	$	410,653	$	410,653	$	-
CONCESSION - Significant Payment Delay
Direct Financing Leases		1	$	45,939	$	45,939	$	-
		1	$	45,939	$	45,939	$	-
TOTAL		5	$	456,592	$	456,592	$	-

Of the TDRs reported above, none were on nonaccrual as of March 31, 2016.

For the three months ended March 31, 2016 and 2015, none of the Company’s TDRs 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 4 - Borrowings

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE 4 – BORROWINGS

During the first quarter of 2016, the Company extinguished $5.1 million of the QCR Holdings Capital Trust IV junior subordinated debentures (the full balance outstanding) and recorded a $1.2 million gain on extinguishment (pre-tax), as the Company was able to acquire the related security at a discount through auction. This gain is included in the statements of income within losses on debt extinguishment. The interest rate on these debentures floated at 3-month LIBOR plus 1.80% and had a rate of 2.42% at the time of extinguishment. QCR Holdings Capital Trust IV was dissolved after the extinguishment.

Also during the first quarter of 2016, the Company executed balance sheet restructuring strategies at QCBT and CRBT, which included the repayment of $10.0 million of wholesale structured repurchase agreements and $10.0 million of FHLB advances with a combined weighted average interest rate of 3.92%. As a result of this restructuring, the Company incurred $1.3 million (pre-tax) in losses on debt extinguishment that are included in the statements of income. The weighted average duration of this combined debt was 2.17 years, with $10.0 million maturing in 2017 and $10.0 maturing in 2018. This funding was replaced with short-term borrowings at an average interest rate of 0.50%.

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Note 5 - Earnings Per Share

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 5 - EARNINGS PER SHARE

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

	Three months ended March 31,
	2016		2015
Net income	$	6,373,489	$	4,177,889
Basic earnings per common share	$	0.54	$	0.52
Diluted earnings per common share	$	0.53	$	0.52
Weighted average common shares outstanding		11,793,620		7,975,910
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan		160,329		121,534
Weighted average common and common equivalent shares outstanding		11,953,949		8,097,444

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Note 6 - Fair Value

3 Months Ended

Mar. 31, 2016

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 March 31, 2016 and December 31, 2015:

			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)
March 31, 2016:
Securities available for sale:
U.S. govt. sponsored agency securities	$	132,741,822	$	-	$	132,741,822	$	-
Residential mortgage-backed and related securities		116,452,374		-		116,452,374		-
Municipal securities		24,929,655		-		24,929,655		-
Other securities		2,064,016		779		2,063,237		-
Derivative instruments		450,651		-		450,651		-
	$	276,638,518	$	779	$	276,637,739	$	-
December 31, 2015:
Securities available for sale:
U.S. govt. sponsored agency securities	$	213,537,379	$	-	$	213,537,379	$	-
Residential mortgage-backed and related securities		80,670,135		-		80,670,135		-
Municipal securities		27,578,588		-		27,578,588		-
Other securities		1,648,880		411		1,648,469		-
Derivative instruments		856,024		-		856,024
	$	324,291,006	$	411	$	324,290,595	$	-

There were no transfers of assets or liabilities between Levels 1, 2, and 3 of the fair value hierarchy for the three months ended March 31, 2016 or 2015.

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 4 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 March 31, 2016 and December 31, 2015:

			Fair Value Measurements at Reporting Date Using
	Fair Value		Level 1		Level 2		Level 3
March 31, 2016:
Impaired loans/leases	$	4,969,221	$	-	$	-	$	4,969,221
OREO		7,214,706		-		-		7,214,706
	$	12,183,927	$	-	$	-	$	12,183,927
December 31, 2015:
Impaired loans/leases	$	4,545,966	$	-	$	-	$	4,545,966
OREO		7,722,711		-		-		7,722,711
	$	12,268,677	$	-	$	-	$	12,268,677

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 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 client and client’s business.  

OREO 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 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 March 31, 2016		Fair Value December 31, 2015		Valuation Technique	Unobservable Input	Range
Impaired loans/leases	$	4,969,221	$	4,545,966	Appraisal of collateral	Appraisal adjustments	-10.00%	to	-50.00%
OREO		7,214,706		7,722,711	Appraisal of collateral	Appraisal adjustments	0.00%	to	-35.00%

For the impaired loans/leases and OREO, 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 months ended March 31, 2016 and 2015.

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 March 31, 2016					As of December 31, 2015
	Hierarchy	Carrying		Estimated			Carrying		Estimated
	Level	Value		Fair Value			Value		Fair Value
Cash and due from banks	Level 1	$	44,930,836	$	44,930,836		$	41,742,321	$	41,742,321
Federal funds sold	Level 2		15,740,000		15,740,000			19,850,000		19,850,000
Interest-bearing deposits at financial institutions	Level 2		41,489,171		41,489,171			36,313,965		36,313,965
Investment securities:
Held to maturity	Level 2		261,129,586		264,414,722			253,674,159		255,691,285
Available for sale	See Previous Table		276,187,867		276,187,867			323,434,982		323,434,982
Loans/leases receivable, net	Level 3		4,601,131		4,969,221			4,209,228		4,545,966
Loans/leases receivable, net	Level 2		1,841,827,043		(4,601,131	)		1,767,672,541		1,764,178,772
Derivative instruments	Level 2		450,651		450,651			856,024		856,024
Deposits:
Nonmaturity deposits	Level 2		1,586,207,114		1,586,207,114			1,516,599,081		1,516,599,081
Time deposits	Level 2		403,365,975		404,278,000			364,067,103		364,192,000
Short-term borrowings	Level 2		64,022,811		64,022,811			144,662,716		144,662,716
FHLB advances	Level 2		150,500,000		152,206,000			151,000,000		153,143,000
Other borrowings	Level 2		100,000,000		106,466,000			110,000,000		116,061,000
Junior subordinated debentures	Level 2		33,378,402		24,520,003			38,499,052		27,642,093

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Note 7 - Business Segment Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

NOTE 7 – 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 comprised of the three subsidiary banks wholly owned by the Company: QCBT, CRBT, and RB&T. 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 as of and for the three months ended March 31, 2016 and 2015.

	Commercial Banking
	Quad City		Cedar Rapids		Rockford		Wealth					Intercompany			Consolidated
	Bank & Trust		Bank & Trust		Bank & Trust		Management		All Other			Eliminations			Total
Three Months Ended March 31, 2016
Total revenue	$	13,516,932	$	10,839,221	$	3,794,247	$	2,234,292	$	6,859,775		$	(6,919,935	)	$	30,324,532
Net interest income	$	10,961,447	$	7,024,988	$	2,911,974	$	-	$	(300,887	)	$	-		$	20,597,522
Net income	$	2,831,696	$	2,934,731	$	617,785	$	447,770	$	6,373,488		$	(6,831,981	)	$	6,373,489
Total assets	$	1,361,607,041	$	885,858,279	$	367,031,670	$	-	$	288,814,613		$	(262,638,349	)	$	2,640,673,254
Provision	$	1,222,985	$	550,000	$	300,000	$	-	$	-		$	-		$	2,072,985
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,421,531	$	-	$	-	$	-		$	-		$	1,421,531
Three Months Ended March 31, 2015
Total revenue	$	12,801,418	$	9,525,647	$	3,541,590	$	2,343,438	$	5,616,443		$	(5,705,028	)	$	28,123,508
Net interest income	$	9,275,038	$	6,358,297	$	2,634,082	$	-	$	(485,200	)	$	-		$	17,782,217
Net income	$	2,562,613	$	2,068,306	$	518,657	$	459,330	$	4,177,889		$	(5,608,906	)	$	4,177,889
Total assets	$	1,268,168,825	$	855,417,474	$	354,993,941	$	-	$	221,549,665		$	(208,470,899	)	$	2,491,659,006
Provision	$	882,456	$	600,000	$	228,000	$	-	$	-		$	-		$	1,710,456
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,621,043	$	-	$	-	$	-		$	-		$	1,621,043

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Note 8 - Regulatory Capital Requirements

3 Months Ended

Mar. 31, 2016

Disclosure Text Block [Abstract]

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE 8 – REGULATORY CAPITAL REQUIREMENTS

The Company (on a consolidated basis) and the 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 classification 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 table) of total common equity Tier 1 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 March 31, 2016 and December 31, 2015, that the Company and the subsidiary banks met all capital adequacy requirements to which they are subject.

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, Tier 1 leverage and common equity Tier 1 ratios as set forth in the following tables. The Company and the subsidiary banks’ actual capital amounts and ratios as of March 31, 2016 and December 31, 2015 are also presented in the following table (dollars in thousands). As of March 31, 2016 and December 31, 2015, each of the subsidiary banks met the requirements to be “well capitalized”.

						For Capital						To Be Well
						Adequacy Purposes						Capitalized Under
						With Capital						Prompt Corrective
	Actual					Conservation Buffer*						Action Provisions
	Amount		Ratio			Amount			Ratio			Amount			Ratio
As of March 31, 2016:
Company:
Total risk-based capital	$	282,957		12.68	%	$	192,416	>		8.625	%	$	223,091	>		10.0	%
Tier 1 risk-based capital		255,372		11.45	%		147,797	>		6.625			178,472	>		8.0
Tier 1 leverage		255,372		9.85	%		103,728	>		4.000			129,660	>		5.0
Common equity Tier 1		225,582		10.11	%		114,334	>		5.125			145,009	>		6.5
Quad City Bank & Trust:
Total risk-based capital	$	137,161		12.01	%	$	98,496	>		8.625	%	$	114,198	>		10.0	%
Tier 1 risk-based capital		124,668		10.92	%		75,656	>		6.625			91,358	>		8.0
Tier 1 leverage		124,668		9.12	%		54,680	>		4.000			68,351	>		5.0
Common equity Tier 1		124,668		10.92	%		58,526	>		5.125			74,229	>		6.5
Cedar Rapids Bank & Trust:
Total risk-based capital	$	106,576		13.98	%	$	65,729	>		8.625	%	$	76,208	>		10.0	%
Tier 1 risk-based capital		97,032		12.73	%		50,488	>		6.625			60,966	>		8.0
Tier 1 leverage		97,032		11.03	%		35,197	>		4.000			43,996	>		5.0
Common equity Tier 1		97,032		12.73	%		39,056	>		5.125			49,535	>		6.5
Rockford Bank & Trust:
Total risk-based capital	$	39,201		12.03	%	$	28,096	>		8.625	%	$	32,575	>		10.0	%
Tier 1 risk-based capital		35,125		10.78	%		21,581	>		6.625			26,060	>		8.0
Tier 1 leverage		35,125		9.52	%		14,758	>		4.000			18,447	>		5.0
Common equity Tier 1		35,125		10.78	%		16,695	>		5.125			21,174	>		6.5

	Actual				For Capital Adequacy Purposes*					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio			Amount		Ratio
As of December 31, 2015:
Company:
Total risk-based capital	$	280,273		13.11%	$	170,969	>	8.0%	%	$	213,711	>	10.0%
Tier 1 risk-based capital		253,891		11.88%		128,227	>	6.0			170,969	>	8.0
Tier 1 leverage		253,891		9.75%		104,163	>	4.0			130,203	>	5.0
Common equity Tier 1		220,800		10.33%		96,170	>	4.5			138,912	>	6.5
Quad City Bank & Trust:
Total risk-based capital	$	135,477		12.50%	$	86,726	>	8.0%	%	$	108,407	>	10.0%
Tier 1 risk-based capital		123,498		11.39%		65,044	>	6.0			86,726	>	8.0
Tier 1 leverage		123,498		8.87%		55,718	>	4.0			69,648	>	5.0
Common equity Tier 1		123,498		11.39%		48,783	>	4.5			70,465	>	6.5
Cedar Rapids Bank & Trust:
Total risk-based capital	$	105,285		14.39%	$	58,537	>	8.0%	%	$	73,172	>	10.0%
Tier 1 risk-based capital		96,118		13.14%		43,903	>	6.0			58,537	>	8.0
Tier 1 leverage		96,118		10.96%		35,079	>	4.0			43,848	>	5.0
Common equity Tier 1		96,118		13.14%		32,927	>	4.5			47,562	>	6.5
Rockford Bank & Trust:
Total risk-based capital	$	38,544		11.96%	$	25,772	>	8.0%	%	$	32,216	>	10.0%
Tier 1 risk-based capital		34,514		10.71%		19,329	>	6.0			25,772	>	8.0
Tier 1 leverage		34,514		9.59%		14,401	>	4.0			18,001	>	5.0
Common equity Tier 1		34,514		10.71%		14,497	>	4.5			20,940	>	6.5

*The minimums under Basel III phase in higher by .625% (the capital conservation buffer) annually until 2019. The fully phased-in minimums are 10.5% (Total risk-based capital), 8.5% (Tier 1 risk-based capital), and 7.0% (Common equity Tier 1). At December 31, 2015, the New Basel III minimums mirrored the minimums required for capital adequacy purposes. The first phase-in of the Basel III capital conservation buffer occured in 2016.

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Accounting Policies, by Policy (Policies)

3 Months Ended

Mar. 31, 2016

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, 2015, included in the Company’s Annual Report on Form 10-K filed with the SEC on March 11, 2016. 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. GAAP 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 as of and for the three months ended March 31, 2016, are not necessarily indicative of the results expected for the year ending December 31, 2016.

The acronyms and abbreviations identified below are used throughout this Quarterly Report on Form 10-Q. It may be helpful to refer back to this page as you read this report.

Allowance: Allowance for estimated losses on loans/leases	HTM: Held to maturity
AOCI: Accumulated other comprehensive income (loss)	m2: m2 Lease Funds, LLC
AFS: Available for sale	MD&A: Management's Discussion & Analysis
ASU: Accounting Standards Update	NIM: Net interest margin
BOLI: Bank-owned life insurance	NPA: Nonperforming asset
Caps: Interest rate cap derivatives	NPL: Nonperforming loan
Community National: Community National Bancorporation	OREO: Other real estate owned
CNB: Community National Bank	OTTI: Other-than-temporary impairment
CRBT: Cedar Rapids Bank & Trust Company	Provision: Provision for loan/lease losses
CRE: Commercial real estate	QCBT: Quad City Bank & Trust Company
C&I: Commercial and industrial	RB&T: Rockford Bank & Trust Company
Dodd-Frank Act: Dodd-Frank Wall Street Reform and	ROAA: Return on Average Assets
Consumer Protection Act	SBA: U.S. Small Business Administration
EPS: Earnings per share	SEC: Securities and Exchange Commission
Exchange Act: Securities Exchange Act of 1934, as amended	TA: Tangible assets
FASB: Financial Accounting Standards Board	TCE: Tangible common equity
FDIC: Federal Deposit Insurance Corporation	TDRs: Troubled debt restructurings
FHLB: Federal Home Loan Bank	The Company: QCR Holdings, Inc.
FRB: Federal Reserve Bank of Chicago	USDA: U.S. Department of Agriculture
GAAP: Generally Accepted Accounting Principles

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries which include three commercial banks: QCBT, CRBT, and RB&T. All are state-chartered commercial banks. The Company also engages in direct financing lease contracts through 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 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 was originally effective for the Company on January 1, 2017, however, FASB issued ASU 2015-14 which defers the effective date in order to provide additional time for both public and private entities to evaluate the impact. ASU 2014-09 will now be effective for the Company on January 1, 2018 and it is not expected to have a significant impact on the Company’s consolidated financial statements.

In February 2015, FASB issued ASU 2015-02, Consolidation: Amendments to the Consolidation Analysis. ASU 2015-02 is intended to improve targeted areas of consolidation guidance for legal entities such as limited partnerships, limited liability corporations, and securitization structures (collateralized debt obligations, collateralized loan obligations, and mortgage-backed security transactions). The ASU focuses on the consolidation evaluation for reporting organizations that are required to evaluate whether they should consolidate certain legal entities. The ASU also reduces the number of consolidation models from four to two. ASU 2015-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015 and adoption did not have a significant impact on the Company’s consolidated financial statements.

In January 2016, FASB issued ASU 2016-01, Financial Instruments – Overall. ASU 2016-01 makes targeted adjustments to GAAP by eliminating the available for sale classification for equity securities and requiring equity investments to be measured at fair value with changes in fair value recognized in net income. The standard also requires public business entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes. The standard clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. It also requires an entity to present separately (within other comprehensive income) the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. Additionally, the standard eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is in the process of analyzing the impact of adoption.

In February 2016, the FASB issued ASU 2016-02, Leases. Under ASU 2016-02, lessees will be required to recognize a lease liability measured on a discounted basis and a right-of-use asset for all leases (with the exception of short-term leases). Lessor accounting is largely unchanged under ASU 2016-02. However, the definition of initial direct costs was updated to include only initial direct costs that are considered incremental. This change in definition will change the manner in which the Company recognizes the costs associated with originating leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted for all entities. The Company is in the process of analyzing the impact of adoption on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation. ASU 2016-09 aims to simplify the accounting for companies that issue share-based payment awards to their employees. Simplification includes the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows of share-based payment awards. ASU 2016-09 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is in the process of analyzing the impact of adoption on the Company’s consolidated financial statements.

FASB recently reached an updated decision on the effective date for its yet to be issued standard regarding measurement of credit losses on financial instruments. Under the standard it is expected that impairment of the Company’s loans/leases receivable will be measured using the current expected credit loss model, which will entail day-one recognition of life-of-asset expected losses. The standard is expected to be issued during 2016 and will be effective for the Company for the fiscal year beginning January 1, 2020. Management has not yet analyzed the impact of adoption.

Reclassification, Policy [Policy Text Block]

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

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Note 2 - Investment Securities (Tables)

3 Months Ended

Mar. 31, 2016

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

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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Fair Value
March 31, 2016
Securities held to maturity:
Municipal securities	$	260,079,586	$	4,143,965	$	(858,829	)	$	263,364,722
Other securities		1,050,000		-		-			1,050,000
	$	261,129,586	$	4,143,965	$	(858,829	)	$	264,414,722
Securities available for sale:
U.S. govt. sponsored agency securities	$	132,080,737	$	786,623	$	(125,538	)	$	132,741,822
Residential mortgage-backed and related securities		116,012,771		761,091		(321,488	)		116,452,374
Municipal securities		24,113,773		839,125		(23,243	)		24,929,655
Other securities		1,637,366		428,027		(1,377	)		2,064,016
	$	273,844,647	$	2,814,866	$	(471,646	)	$	276,187,867
December 31, 2015:
Securities held to maturity:
Municipal securities	$	252,624,159	$	3,190,558	$	(1,173,432	)	$	254,641,285
Other securities		1,050,000		-		-			1,050,000
	$	253,674,159	$	3,190,558	$	(1,173,432	)	$	255,691,285
Securities available for sale:
U.S. govt. sponsored agency securities	$	216,281,416	$	104,524	$	(2,848,561	)	$	213,537,379
Residential mortgage-backed and related securities		81,442,479		511,095		(1,283,439	)		80,670,135
Municipal securities		26,764,981		872,985		(59,378	)		27,578,588
Other securities		1,108,124		540,919		(163	)		1,648,880
	$	325,597,000	$	2,029,523	$	(4,191,541	)	$	323,434,982

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
March 31, 2016:
Securities held to maturity:
Municipal securities	$	16,874,982	$	(669,283	)	$	7,610,345	$	(189,546	)	$	24,485,327	$	(858,829	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	24,512,886	$	(76,931	)	$	4,946,100	$	(48,607	)	$	29,458,986	$	(125,538	)
Residential mortgage-backed and related securities		18,687,105		(81,719	)		29,708,984		(239,769	)		48,396,089		(321,488	)
Municipal securities		1,157,233		(2,185	)		849,972		(21,058	)		2,007,205		(23,243	)
Other securities		498,623		(1,377	)		-		-			498,623		(1,377	)
	$	44,855,847	$	(162,212	)	$	35,505,056	$	(309,434	)	$	80,360,903	$	(471,646	)
December 31, 2015:
Securities held to maturity:
Municipal securities	$	14,803,408	$	(294,438	)	$	19,927,581	$	(878,994	)	$	34,730,989	$	(1,173,432	)
Securities available for sale:
U.S. govt. sponsored agency securities	$	112,900,327	$	(1,397,591	)	$	64,476,661	$	(1,450,970	)	$	177,376,988	$	(2,848,561	)
Residential mortgage-backed and related securities		40,356,921		(730,466	)		19,836,637		(552,973	)		60,193,558		(1,283,439	)
Municipal securities		2,220,800		(31,807	)		848,329		(27,571	)		3,069,129		(59,378	)
Other securities		411		(163	)		-		-			411		(163	)
	$	155,478,459	$	(2,160,027	)	$	85,161,627	$	(2,031,514	)	$	240,640,086	$	(4,191,541	)

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

	Three Months Ended
	March 31, 2016			March 31, 2015
Proceeds from sales of securities	$	55,526,851		$	54,971,056
Pre-tax gross gains from sales of securities		515,515			573,684
Pre-tax gross losses from sales of securities		(157,035	)		(152,618	)

Investments Classified by Contractual Maturity Date [Table Text Block]

	Amortized Cost		Fair Value
Securities held to maturity:
Due in one year or less	$	4,206,670	$	4,213,609
Due after one year through five years		20,737,843		20,889,363
Due after five years		236,185,073		239,311,750
	$	261,129,586	$	264,414,722
Securities available for sale:
Due in one year or less	$	1,884,460	$	1,895,137
Due after one year through five years		68,198,829		69,027,450
Due after five years		86,111,221		86,748,890
	$	156,194,510	$	157,671,477
Residential mortgage-backed and related securities		116,012,771		116,452,374
Other securities		1,637,366		2,064,016
	$	273,844,647	$	276,187,867

	Amortized Cost		Fair Value
Securities held to maturity:
Municipal securities	$	135,926,431	$	137,921,557
Securities available for sale:
U.S. govt. sponsored agency securities		65,969,684		65,976,489
Municipal securities		15,335,099		15,728,025
	$	81,304,783	$	81,704,514

Bonds [Member]

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

Schedule of Debt [Table Text Block]

March 31, 2016:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		15	$	19,974,438	$	20,309,435	$	1,353,962
Illinois		10		12,665,888		13,014,865		1,301,487
Missouri		12		7,393,378		7,488,699		624,058
North Dakota		6		16,403,026		16,616,824		2,769,471
Other		39		14,954,651		15,233,176		390,594
Total general obligation bonds		82	$	71,391,381	$	72,662,999	$	886,134

December 31, 2015:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Iowa		15	$	19,974,939	$	20,247,108	$	1,349,807
Illinois		9		10,928,700		11,264,348		1,251,594
North Dakota		5		10,890,000		11,050,235		2,210,047
Missouri		12		7,924,800		7,986,856		665,571
Other		41		16,965,393		17,229,485		420,231
Total general obligation bonds		82	$	66,683,832	$	67,778,032	$	826,561

March 31, 2016:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Missouri		42	$	76,260,706	$	77,142,220	$	1,836,720
Iowa		27		74,013,142		75,274,793		2,787,955
Indiana		17		39,342,789		39,675,326		2,333,843
Kansas		4		12,022,852		12,116,209		3,029,052
Other		5		11,162,489		11,422,830		2,284,566
Total revenue bonds		95	$	212,801,978	$	215,631,378	$	2,269,804

December 31, 2015:
U.S. State:	Number of Issuers		Amortized Cost		Fair Value		Average Exposure Per Issuer (Fair Value)
Missouri		41	$	78,593,590	$	79,015,378	$	1,927,204
Iowa		26		70,773,660		71,659,410		2,756,131
Indiana		17		40,018,381		40,210,320		2,365,313
Kansas		3		11,748,679		11,821,055		3,940,352
Other		5		11,570,998		11,735,678		2,347,136
Total revenue bonds		92	$	212,705,308	$	214,441,841	$	2,330,890

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Note 3 - Loans/Leases Receivable (Tables)

3 Months Ended

Mar. 31, 2016

Receivables [Abstract]

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

	As of March 31, 2016			As of December 31, 2015
C&I loans	$	682,056,782		$	648,159,892
CRE loans
Owner-occupied CRE		261,730,899			252,523,164
Commercial construction, land development, and other land		37,970,546			49,083,844
Other non owner-occupied CRE		466,457,920			422,761,757
		766,159,365			724,368,765
Direct financing leases *		172,774,048			173,655,605
Residential real estate loans **		173,096,209			170,432,530
Installment and other consumer loans		71,842,268			73,669,493
		1,865,928,672			1,790,286,285
Plus deferred loan/lease origination costs, net of fees		7,894,944			7,736,390
		1,873,823,616			1,798,022,675
Less allowance		(27,395,442	)		(26,140,906	)
	$	1,846,428,174		$	1,771,881,769
* Direct financing leases:
Net minimum lease payments to be received	$	194,005,721		$	195,476,230
Estimated unguaranteed residual values of leased assets		1,131,634			1,165,706
Unearned lease/residual income		(22,363,307	)		(22,986,331	)
		172,774,048			173,655,605
Plus deferred lease origination costs, net of fees		6,493,124			6,594,582
		179,267,172			180,250,187
Less allowance		(3,287,230	)		(3,395,088	)
	$	175,979,942		$	176,855,099

Past Due Financing Receivables [Table Text Block]

	As of March 31, 2016
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
C&I	$	674,901,078		$	1,038,410		$	469,292		$	-		$	5,648,002		$	682,056,782
CRE
Owner-Occupied CRE		260,963,128			109,210			-			-			658,561			261,730,899
Commercial Construction, Land Development, and Other Land		37,779,180			-			-			-			191,366			37,970,546
Other Non Owner-Occupied CRE		464,239,777			898,733			212,884			-			1,106,526			466,457,920
Direct Financing Leases		169,792,466			977,630			207,496			-			1,796,456			172,774,048
Residential Real Estate		168,865,064			3,133,246			-			46,256			1,051,643			173,096,209
Installment and Other Consumer		70,864,000			645,537			12,776			162			319,793			71,842,268
	$	1,847,404,693		$	6,802,766		$	902,448		$	46,418		$	10,772,347		$	1,865,928,672
As a percentage of total loan/lease portfolio		99.01	%		0.36	%		0.05	%		0.00	%		0.58	%		100.00	%

	As of December 31, 2015
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
C&I	$	640,725,241		$	1,636,860		$	5,816		$	-		$	5,791,975		$	648,159,892
CRE
Owner-Occupied CRE		251,612,752			182,949			-			-			727,463			252,523,164
Commercial Construction, Land Development, and Other Land		48,890,040			-			-			-			193,804			49,083,844
Other Non Owner-Occupied CRE		420,819,874			614,732			219,383			-			1,107,768			422,761,757
Direct Financing Leases		170,021,289			1,490,818			439,314			2,843			1,701,341			173,655,605
Residential Real Estate		166,415,118			2,800,589			200,080			-			1,016,743			170,432,530
Installment and Other Consumer		73,134,197			412,052			14,127			-			109,117			73,669,493
	$	1,771,618,511		$	7,138,000		$	878,720		$	2,843		$	10,648,211		$	1,790,286,285
As a percentage of total loan/lease portfolio		98.96	%		0.40	%		0.05	%		0.00	%		0.59	%		100.00	%

Schedule of Nonperforming Loans Leases [Table Text Block]

	As of March 31, 2016
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases *		Accruing TDRs		Total NPLs		Percentage of Total NPLs
C&I	$	-	$	5,648,002	$	172,093	$	5,820,095		48.60	%
CRE
Owner-Occupied CRE		-		658,561		-		658,561		5.50	%
Commercial Construction, Land Development, and Other Land		-		191,366		-		191,366		1.60	%
Other Non Owner-Occupied CRE		-		1,106,526		-		1,106,526		9.24	%
Direct Financing Leases		-		1,796,456		456,592		2,253,048		18.81	%
Residential Real Estate		46,256		1,051,643		398,337		1,496,236		12.49	%
Installment and Other Consumer		162		319,793		129,808		449,763		3.76	%
	$	46,418	$	10,772,347	$	1,156,830	$	11,975,595		100.00	%

	As of December 31, 2015
Classes of Loans/Leases	Accruing Past Due 90 Days or More		Nonaccrual Loans/Leases **		Accruing TDRs		Total NPLs		Percentage of Total NPLs
C&I	$	-	$	5,791,975	$	173,087	$	5,965,062		50.96	%
CRE
Owner-Occupied CRE		-		727,463		-	$	727,463		6.22	%
Commercial Construction, Land Development, and Other Land		-		193,804		-	$	193,804		1.66	%
Other Non Owner-Occupied CRE		-		1,107,768		-	$	1,107,768		9.46	%
Direct Financing Leases		2,843		1,701,341		-	$	1,704,184		14.56	%
Residential Real Estate		-		1,016,743		402,044	$	1,418,787		12.12	%
Installment and Other Consumer		-		109,117		478,625	$	587,742		5.02	%
	$	2,843	$	10,648,211	$	1,053,756	$	11,704,810		100.00	%

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

	Three Months Ended March 31, 2016
	C&I			CRE		Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Balance, beginning	$	10,484,080		$	9,375,117	$	3,395,088		$	1,790,150		$	1,096,471		$	26,140,906
Provisions charged to expense		739,831			715,450		478,245			62,656			76,803			2,072,985
Loans/leases charged off		(243,566	)		-		(600,938	)		(16,184	)		(7,596	)		(868,284	)
Recoveries on loans/leases previously charged off		11,634			-		14,836			-			23,365			49,835
Balance, ending	$	10,991,979		$	10,090,567	$	3,287,231		$	1,836,622		$	1,189,043		$	27,395,442

	Three Months Ended March 31, 2015
	C&I			CRE			Direct Financing Leases			Residential Real Estate		Installment and Other Consumer			Total
Balance, beginning	$	8,833,832		$	8,353,386		$	3,359,400		$	1,525,952	$	1,001,795		$	23,074,365
Provisions charged to expense		388,641			835,894			403,452			71,802		10,667			1,710,456
Loans/leases charged off		(200,301	)		(351,076	)		(547,492	)		-		(8,794	)		(1,107,663	)
Recoveries on loans/leases previously charged off		154,992			-			12,098			-		39,025			206,115
Balance, ending	$	9,177,164		$	8,838,204		$	3,227,458		$	1,597,754	$	1,042,693		$	23,883,273

	As of March 31, 2016
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	2,168,454		$	82,296		$	483,193		$	199,498		$	246,413		$	3,179,854
Allowance for nonimpaired loans/leases		8,823,525			10,008,271			2,804,038			1,637,124			942,630			24,215,588
	$	10,991,979		$	10,090,567		$	3,287,231		$	1,836,622		$	1,189,043		$	27,395,442
Impaired loans/leases	$	5,178,446		$	1,946,451		$	2,253,046		$	1,496,236		$	449,600		$	11,323,779
Nonimpaired loans/leases		676,878,336			764,212,914			170,521,002			171,599,973			71,392,668			1,854,604,893
	$	682,056,782		$	766,159,365		$	172,774,048		$	173,096,209		$	71,842,268		$	1,865,928,672
Allowance as a percentage of impaired loans/leases		41.87	%		4.23	%		21.45	%		13.33	%		54.81	%		28.08	%
Allowance as a percentage of nonimpaired loans/leases		1.30	%		1.31	%		1.64	%		0.95	%		1.32	%		1.31	%
Total allowance as a percentage of total loans/leases		1.61	%		1.32	%		1.90	%		1.06	%		1.66	%		1.46	%

	As of December 31, 2015
	C&I			CRE			Direct Financing Leases			Residential Real Estate			Installment and Other Consumer			Total
Allowance for impaired loans/leases	$	2,592,270		$	76,934		$	306,193		$	185,801		$	143,089		$	3,304,287
Allowance for nonimpaired loans/leases		7,891,810			9,298,183			3,088,895			1,604,349			953,382			22,836,619
	$	10,484,080		$	9,375,117		$	3,395,088		$	1,790,150		$	1,096,471		$	26,140,906
Impaired loans/leases	$	5,286,482		$	2,029,035		$	1,701,341		$	1,418,787		$	587,742		$	11,023,387
Nonimpaired loans/leases		642,873,410			722,339,730			171,954,264			169,013,743			73,081,751			1,779,262,898
	$	648,159,892		$	724,368,765		$	173,655,605		$	170,432,530		$	73,669,493		$	1,790,286,285
Allowance as a percentage of impaired loans/leases		49.04	%		3.79	%		18.00	%		13.10	%		24.35	%		29.98	%
Allowance as a percentage of nonimpaired loans/leases		1.23	%		1.29	%		1.80	%		0.95	%		1.30	%		1.28	%
Total allowance as a percentage of total loans/leases		1.62	%		1.29	%		1.96	%		1.05	%		1.49	%		1.45	%

Impaired Financing Receivables [Table Text Block]

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:
C&I	$	286,508	$	477,450	$	-	$	347,369	$	1,824	$	1,824
CRE
Owner-Occupied CRE		242,887		336,661		-		244,824		-		-
Commercial Construction, Land Development, and Other Land		-		-		-		-		-		-
Other Non Owner-Occupied CRE		1,512,198		1,512,198		-		1,545,334		-		-
Direct Financing Leases		1,314,779		1,314,779		-		1,176,588		11,603		11,603
Residential Real Estate		585,186		624,387		-		585,981		1,038		1,038
Installment and Other Consumer		47,480		47,480		-		212,392		-		-
	$	3,989,038	$	4,312,955	$	-	$	4,112,488	$	14,465	$	14,465
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	4,891,938	$	4,895,777	$	2,168,454	$	4,885,096	$	-	$	-
CRE
Owner-Occupied CRE		-		-		-		-		-		-
Commercial Construction, Land Development, and Other Land		191,366		203,366		82,296		192,585		-		-
Other Non Owner-Occupied CRE		-		-		-		-		-		-
Direct Financing Leases		938,267		938,267		483,193		800,606		-		-
Residential Real Estate		911,050		946,628		199,498		871,531		1,958		1,958
Installment and Other Consumer		402,120		402,120		246,413		306,279		1,500		1,500
	$	7,334,741	$	7,386,158	$	3,179,854	$	7,056,097	$	3,458	$	3,458
Total Impaired Loans/Leases:
C&I	$	5,178,446	$	5,373,227	$	2,168,454	$	5,232,465	$	1,824	$	1,824
CRE
Owner-Occupied CRE		242,887		336,661		-		244,824		-		-
Commercial Construction, Land Development, and Other Land		191,366		203,366		82,296		192,585		-		-
Other Non Owner-Occupied CRE		1,512,198		1,512,198		-		1,545,334		-		-
Direct Financing Leases		2,253,046		2,253,046		483,193		1,977,194		11,603		11,603
Residential Real Estate		1,496,236		1,571,015		199,498		1,457,512		2,996		2,996
Installment and Other Consumer		449,600		449,600		246,413		518,671		1,500		1,500
	$	11,323,779	$	11,699,113	$	3,179,854	$	11,168,585	$	17,923	$	17,923

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:
C&I	$	331,612	$	425,636	$	-	$	1,352,320	$	1,849	$	1,849
CRE
Owner-Occupied CRE		173,131		269,354		-		189,621		-		-
Commercial Construction, Land Development, and Other Land		171,186		511,204		-		171,186		-		-
Other Non Owner-Occupied CRE		290,577		1,528,456		-		1,102,174		-		-
Direct Financing Leases		665,735		665,735		-		1,009,487		4,109		4,109
Residential Real Estate		981,608		1,017,186		-		1,089,298		483		483
Installment and Other Consumer		726,050		726,050		-		698,685		-		-
	$	3,339,899	$	5,143,621	$	-	$	5,612,771	$	6,441	$	6,441
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	4,969,554	$	4,973,392	$	2,513,023	$	4,938,115	$	-	$	-
CRE
Owner-Occupied CRE		454,980		454,980		15,154		468,590		-		-
Commercial Construction, Land Development, and Other Land		197,225		209,225		46,570		197,526		-		-
Other Non Owner-Occupied CRE		4,208,602		4,655,235		767,113		4,335,446		-		-
Direct Financing Leases		457,463		457,463		283,485		380,548		-		-
Residential Real Estate		864,957		864,957		180,160		728,349		2,830		2,830
Installment and Other Consumer		611,096		611,096		267,430		552,663		2,260		2,260
	$	11,763,877	$	12,226,348	$	4,072,935	$	11,601,237	$	5,090	$	5,090
Total Impaired Loans/Leases:
C&I	$	5,301,166	$	5,399,028	$	2,513,023	$	6,290,435	$	1,849	$	1,849
CRE
Owner-Occupied CRE		628,111		724,334		15,154		658,211		-		-
Commercial Construction, Land Development, and Other Land		368,411		720,429		46,570		368,712		-		-
Other Non Owner-Occupied CRE		4,499,179		6,183,691		767,113		5,437,620		-		-
Direct Financing Leases		1,123,198		1,123,198		283,485		1,390,035		4,109		4,109
Residential Real Estate		1,846,565		1,882,143		180,160		1,817,647		3,313		3,313
Installment and Other Consumer		1,337,146		1,337,146		267,430		1,251,348		2,260		2,260
	$	15,103,776	$	17,369,969	$	4,072,935	$	17,214,008	$	11,531	$	11,531

Classes of Loans/Leases	Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired Loans/Leases with No Specific Allowance Recorded:
C&I	$	234,636	$	346,072	$	-
CRE
Owner-Occupied CRE		256,761		350,535		-
Commercial Construction, Land Development, and Other Land		-		228,818		-
Other Non Owner-Occupied CRE		1,578,470		1,578,470		-
Direct Financing Leases		871,884		871,884		-
Residential Real Estate		613,486		649,064		-
Installment and Other Consumer		377,304		377,304		-
	$	3,932,541	$	4,402,147	$	-
Impaired Loans/Leases with Specific Allowance Recorded:
C&I	$	5,051,846	$	5,055,685	$	2,592,270
CRE
Owner-Occupied CRE		-		-		-
Commercial Construction, Land Development, and Other Land		193,804		205,804		76,934
Other Non Owner-Occupied CRE		-		-		-
Direct Financing Leases		829,457		829,457		306,193
Residential Real Estate		805,301		805,301		185,801
Installment and Other Consumer		210,438		210,438		143,089
	$	7,090,846	$	7,106,685	$	3,304,287
Total Impaired Loans/Leases:
C&I	$	5,286,482	$	5,401,757	$	2,592,270
CRE
Owner-Occupied CRE		256,761		350,535		-
Commercial Construction, Land Development, and Other Land		193,804		434,622		76,934
Other Non Owner-Occupied CRE		1,578,470		1,578,470		-
Direct Financing Leases		1,701,341		1,701,341		306,193
Residential Real Estate		1,418,787		1,454,365		185,801
Installment and Other Consumer		587,742		587,742		143,089
	$	11,023,387	$	11,508,832	$	3,304,287

Financing Receivable Credit Quality Indicators [Table Text Block]

	As of March 31, 2016
			CRE
					Non Owner-Occupied
Internally Assigned Risk Rating	C&I		Owner-Occupied CRE		Commercial Construction, Land Development, and Other Land		Other CRE		Total		As a % of Total
Pass (Ratings 1 through 5)	$	647,678,612	$	250,031,858	$	35,892,683	$	448,275,195	$	1,381,878,348		95.42	%
Special Mention (Rating 6)		12,346,445		3,376,191		1,780,000		10,562,085		28,064,721		1.94	%
Substandard (Rating 7)		22,031,725		8,322,850		297,863		7,620,640		38,273,078		2.64	%
Doubtful (Rating 8)		-		-		-		-		-		-
	$	682,056,782	$	261,730,899	$	37,970,546	$	466,457,920	$	1,448,216,147		100.00	%

	As of March 31, 2016
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total		As a % of Total
Performing	$	170,521,000	$	171,599,973	$	71,392,505	$	413,513,478		98.99	%
Nonperforming		2,253,048		1,496,236		449,763		4,199,047		1.01	%
	$	172,774,048	$	173,096,209	$	71,842,268	$	417,712,525		100.00	%

	As of December 31, 2015
			CRE
					Non Owner-Occupied
Internally Assigned Risk Rating	C&I		Owner-Occupied CRE		Commercial Construction, Land Development, and Other Land		Other CRE		Total		As a % of Total
Pass (Ratings 1 through 5)	$	616,200,797	$	238,119,608	$	46,929,876	$	406,027,442	$	1,307,277,723		95.24	%
Special Mention (Rating 6)		18,031,845		8,630,658		1,780,000		8,846,286		37,288,789		2.72	%
Substandard (Rating 7)		13,927,250		5,772,898		373,968		7,888,029		27,962,145		2.04	%
Doubtful (Rating 8)		-		-		-		-		-		-
	$	648,159,892	$	252,523,164	$	49,083,844	$	422,761,757	$	1,372,528,657		100.00	%

	As of December 31, 2015
Delinquency Status *	Direct Financing Leases		Residential Real Estate		Installment and Other Consumer		Total		As a % of Total
Performing	$	171,951,421	$	169,013,743	$	73,081,751	$	414,046,915		99.11	%
Nonperforming		1,704,184		1,418,787		587,742		3,710,713		0.89	%
	$	173,655,605	$	170,432,530	$	73,669,493	$	417,757,628		100.00	%

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

	For the three months ended March 31, 2016
Classes of Loans/Leases	Number of Loans / Leases		Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Specific Allowance
CONCESSION - Extension of Maturity
Direct Financing Leases		4	$	410,653	$	410,653	$	-
		4	$	410,653	$	410,653	$	-
CONCESSION - Significant Payment Delay
Direct Financing Leases		1	$	45,939	$	45,939	$	-
		1	$	45,939	$	45,939	$	-
TOTAL		5	$	456,592	$	456,592	$	-

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Note 5 - Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

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

	Three months ended March 31,
	2016		2015
Net income	$	6,373,489	$	4,177,889
Basic earnings per common share	$	0.54	$	0.52
Diluted earnings per common share	$	0.53	$	0.52
Weighted average common shares outstanding		11,793,620		7,975,910
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan		160,329		121,534
Weighted average common and common equivalent shares outstanding		11,953,949		8,097,444

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Note 6 - Fair Value (Tables)

3 Months Ended

Mar. 31, 2016

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)
March 31, 2016:
Securities available for sale:
U.S. govt. sponsored agency securities	$	132,741,822	$	-	$	132,741,822	$	-
Residential mortgage-backed and related securities		116,452,374		-		116,452,374		-
Municipal securities		24,929,655		-		24,929,655		-
Other securities		2,064,016		779		2,063,237		-
Derivative instruments		450,651		-		450,651		-
	$	276,638,518	$	779	$	276,637,739	$	-
December 31, 2015:
Securities available for sale:
U.S. govt. sponsored agency securities	$	213,537,379	$	-	$	213,537,379	$	-
Residential mortgage-backed and related securities		80,670,135		-		80,670,135		-
Municipal securities		27,578,588		-		27,578,588		-
Other securities		1,648,880		411		1,648,469		-
Derivative instruments		856,024		-		856,024
	$	324,291,006	$	411	$	324,290,595	$	-

			Fair Value Measurements at Reporting Date Using
	Fair Value		Level 1		Level 2		Level 3
March 31, 2016:
Impaired loans/leases	$	4,969,221	$	-	$	-	$	4,969,221
OREO		7,214,706		-		-		7,214,706
	$	12,183,927	$	-	$	-	$	12,183,927
December 31, 2015:
Impaired loans/leases	$	4,545,966	$	-	$	-	$	4,545,966
OREO		7,722,711		-		-		7,722,711
	$	12,268,677	$	-	$	-	$	12,268,677

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

	Quantitave Information about Level Fair Value Measurments
	Fair Value March 31, 2016		Fair Value December 31, 2015		Valuation Technique	Unobservable Input	Range
Impaired loans/leases	$	4,969,221	$	4,545,966	Appraisal of collateral	Appraisal adjustments	-10.00%	to	-50.00%
OREO		7,214,706		7,722,711	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 March 31, 2016					As of December 31, 2015
	Hierarchy	Carrying		Estimated			Carrying		Estimated
	Level	Value		Fair Value			Value		Fair Value
Cash and due from banks	Level 1	$	44,930,836	$	44,930,836		$	41,742,321	$	41,742,321
Federal funds sold	Level 2		15,740,000		15,740,000			19,850,000		19,850,000
Interest-bearing deposits at financial institutions	Level 2		41,489,171		41,489,171			36,313,965		36,313,965
Investment securities:
Held to maturity	Level 2		261,129,586		264,414,722			253,674,159		255,691,285
Available for sale	See Previous Table		276,187,867		276,187,867			323,434,982		323,434,982
Loans/leases receivable, net	Level 3		4,601,131		4,969,221			4,209,228		4,545,966
Loans/leases receivable, net	Level 2		1,841,827,043		(4,601,131	)		1,767,672,541		1,764,178,772
Derivative instruments	Level 2		450,651		450,651			856,024		856,024
Deposits:
Nonmaturity deposits	Level 2		1,586,207,114		1,586,207,114			1,516,599,081		1,516,599,081
Time deposits	Level 2		403,365,975		404,278,000			364,067,103		364,192,000
Short-term borrowings	Level 2		64,022,811		64,022,811			144,662,716		144,662,716
FHLB advances	Level 2		150,500,000		152,206,000			151,000,000		153,143,000
Other borrowings	Level 2		100,000,000		106,466,000			110,000,000		116,061,000
Junior subordinated debentures	Level 2		33,378,402		24,520,003			38,499,052		27,642,093

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Note 7 - Business Segment Information (Tables)

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

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

	Commercial Banking
	Quad City		Cedar Rapids		Rockford		Wealth					Intercompany			Consolidated
	Bank & Trust		Bank & Trust		Bank & Trust		Management		All Other			Eliminations			Total
Three Months Ended March 31, 2016
Total revenue	$	13,516,932	$	10,839,221	$	3,794,247	$	2,234,292	$	6,859,775		$	(6,919,935	)	$	30,324,532
Net interest income	$	10,961,447	$	7,024,988	$	2,911,974	$	-	$	(300,887	)	$	-		$	20,597,522
Net income	$	2,831,696	$	2,934,731	$	617,785	$	447,770	$	6,373,488		$	(6,831,981	)	$	6,373,489
Total assets	$	1,361,607,041	$	885,858,279	$	367,031,670	$	-	$	288,814,613		$	(262,638,349	)	$	2,640,673,254
Provision	$	1,222,985	$	550,000	$	300,000	$	-	$	-		$	-		$	2,072,985
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,421,531	$	-	$	-	$	-		$	-		$	1,421,531
Three Months Ended March 31, 2015
Total revenue	$	12,801,418	$	9,525,647	$	3,541,590	$	2,343,438	$	5,616,443		$	(5,705,028	)	$	28,123,508
Net interest income	$	9,275,038	$	6,358,297	$	2,634,082	$	-	$	(485,200	)	$	-		$	17,782,217
Net income	$	2,562,613	$	2,068,306	$	518,657	$	459,330	$	4,177,889		$	(5,608,906	)	$	4,177,889
Total assets	$	1,268,168,825	$	855,417,474	$	354,993,941	$	-	$	221,549,665		$	(208,470,899	)	$	2,491,659,006
Provision	$	882,456	$	600,000	$	228,000	$	-	$	-		$	-		$	1,710,456
Goodwill	$	3,222,688	$	-	$	-	$	-	$	-		$	-		$	3,222,688
Core deposit intangible	$	-	$	1,621,043	$	-	$	-	$	-		$	-		$	1,621,043

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Note 8 - Regulatory Capital Requirements (Tables)

3 Months Ended

Mar. 31, 2016

Disclosure Text Block [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

						For Capital						To Be Well
						Adequacy Purposes						Capitalized Under
						With Capital						Prompt Corrective
	Actual					Conservation Buffer*						Action Provisions
	Amount		Ratio			Amount			Ratio			Amount			Ratio
As of March 31, 2016:
Company:
Total risk-based capital	$	282,957		12.68	%	$	192,416	>		8.625	%	$	223,091	>		10.0	%
Tier 1 risk-based capital		255,372		11.45	%		147,797	>		6.625			178,472	>		8.0
Tier 1 leverage		255,372		9.85	%		103,728	>		4.000			129,660	>		5.0
Common equity Tier 1		225,582		10.11	%		114,334	>		5.125			145,009	>		6.5
Quad City Bank & Trust:
Total risk-based capital	$	137,161		12.01	%	$	98,496	>		8.625	%	$	114,198	>		10.0	%
Tier 1 risk-based capital		124,668		10.92	%		75,656	>		6.625			91,358	>		8.0
Tier 1 leverage		124,668		9.12	%		54,680	>		4.000			68,351	>		5.0
Common equity Tier 1		124,668		10.92	%		58,526	>		5.125			74,229	>		6.5
Cedar Rapids Bank & Trust:
Total risk-based capital	$	106,576		13.98	%	$	65,729	>		8.625	%	$	76,208	>		10.0	%
Tier 1 risk-based capital		97,032		12.73	%		50,488	>		6.625			60,966	>		8.0
Tier 1 leverage		97,032		11.03	%		35,197	>		4.000			43,996	>		5.0
Common equity Tier 1		97,032		12.73	%		39,056	>		5.125			49,535	>		6.5
Rockford Bank & Trust:
Total risk-based capital	$	39,201		12.03	%	$	28,096	>		8.625	%	$	32,575	>		10.0	%
Tier 1 risk-based capital		35,125		10.78	%		21,581	>		6.625			26,060	>		8.0
Tier 1 leverage		35,125		9.52	%		14,758	>		4.000			18,447	>		5.0
Common equity Tier 1		35,125		10.78	%		16,695	>		5.125			21,174	>		6.5

	Actual				For Capital Adequacy Purposes*					To Be Well Capitalized Under Prompt Corrective Action Provisions
	Amount		Ratio		Amount		Ratio			Amount		Ratio
As of December 31, 2015:
Company:
Total risk-based capital	$	280,273		13.11%	$	170,969	>	8.0%	%	$	213,711	>	10.0%
Tier 1 risk-based capital		253,891		11.88%		128,227	>	6.0			170,969	>	8.0
Tier 1 leverage		253,891		9.75%		104,163	>	4.0			130,203	>	5.0
Common equity Tier 1		220,800		10.33%		96,170	>	4.5			138,912	>	6.5
Quad City Bank & Trust:
Total risk-based capital	$	135,477		12.50%	$	86,726	>	8.0%	%	$	108,407	>	10.0%
Tier 1 risk-based capital		123,498		11.39%		65,044	>	6.0			86,726	>	8.0
Tier 1 leverage		123,498		8.87%		55,718	>	4.0			69,648	>	5.0
Common equity Tier 1		123,498		11.39%		48,783	>	4.5			70,465	>	6.5
Cedar Rapids Bank & Trust:
Total risk-based capital	$	105,285		14.39%	$	58,537	>	8.0%	%	$	73,172	>	10.0%
Tier 1 risk-based capital		96,118		13.14%		43,903	>	6.0			58,537	>	8.0
Tier 1 leverage		96,118		10.96%		35,079	>	4.0			43,848	>	5.0
Common equity Tier 1		96,118		13.14%		32,927	>	4.5			47,562	>	6.5
Rockford Bank & Trust:
Total risk-based capital	$	38,544		11.96%	$	25,772	>	8.0%	%	$	32,216	>	10.0%
Tier 1 risk-based capital		34,514		10.71%		19,329	>	6.0			25,772	>	8.0
Tier 1 leverage		34,514		9.59%		14,401	>	4.0			18,001	>	5.0
Common equity Tier 1		34,514		10.71%		14,497	>	4.5			20,940	>	6.5

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Note 2 - Investment Securities (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($)
Note 2 - Investment Securities (Details) [Line Items]
Number of Securities	465
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions	58
Aggregate Depreciation from Amortized Cost Basis, Percent	1.00%
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year	21
Other than Temporary Impairment Losses, Investments (in Dollars)		$ 0
Equity Securities [Member]
Note 2 - Investment Securities (Details) [Line Items]
Percentage of Investment Portfolio	1.00%		1.00%
Other than Temporary Impairment Losses, Investments (in Dollars)	$ 0	$ 0
Debt Securities [Member]
Note 2 - Investment Securities (Details) [Line Items]
Other than Temporary Impairment Losses, Investments (in Dollars)	$ 0
Revenue Bonds [Member] | Municipal Bonds [Member]
Note 2 - Investment Securities (Details) [Line Items]
Number of Issuers	82		92
Other Investments (in Dollars)	$ 215,600,000		$ 214,400,000
Number of States Investments Held In	9		9
Revenue Bonds [Member] | Municipal Bonds [Member] | Aggregate Fair Value Exceeding $5 Million [Member]
Note 2 - Investment Securities (Details) [Line Items]
Number of States Investments Held In	4		4
Revenue Bonds [Member] | Stockholders' Equity, Total [Member] | Credit Concentration Risk [Member]
Note 2 - Investment Securities (Details) [Line Items]
Concentration Risk, Percentage	0.00%		0.00%
Revenue Bonds [Member] | Minimum [Member] | Municipal Bonds [Member]
Note 2 - Investment Securities (Details) [Line Items]
Other Investments (in Dollars)	$ 5,000,000		$ 5,000,000
General Obligation Bonds [Member] | Municipal Bonds [Member]
Note 2 - Investment Securities (Details) [Line Items]
Number of Issuers	95		82
Other Investments (in Dollars)	$ 72,700,000		$ 67,800,000
Number of States Investments Held In	19		19
General Obligation Bonds [Member] | Municipal Bonds [Member] | Aggregate Fair Value Exceeding $5 Million [Member]
Note 2 - Investment Securities (Details) [Line Items]
Number of States Investments Held In	4		4
General Obligation Bonds [Member] | Stockholders' Equity, Total [Member] | Credit Concentration Risk [Member]
Note 2 - Investment Securities (Details) [Line Items]
Concentration Risk, Percentage	0.00%		0.00%
General Obligation Bonds [Member] | Minimum [Member] | Municipal Bonds [Member]
Note 2 - Investment Securities (Details) [Line Items]
Other Investments (in Dollars)	$ 5,000,000		$ 5,000,000

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Note 2 - Investment Securities (Details) - Amortized Cost and Fair Value of Investment Securities - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Securities held to maturity:
Securities held to maturity, amortized cost	$ 261,129,586	$ 253,674,159
Securities held to maturity, gross unrealized gains	4,143,965	3,190,558
Securities held to maturity, gross unrealized losses	(858,829)	(1,173,432)
Securities held to maturity, fair value	264,414,722	255,691,285
Securities available for sale:
Securities available for sale, amortized cost	273,844,647	325,597,000
Securities available for sale, gross unrealized gains	2,814,866	2,029,523
Securities available for sale, gross unrealized losses	(471,646)	(4,191,541)
Securities available for sale, fair value	276,187,867	323,434,982
US States and Political Subdivisions Debt Securities [Member]
Securities held to maturity:
Securities held to maturity, amortized cost	260,079,586	252,624,159
Securities held to maturity, gross unrealized gains	4,143,965	3,190,558
Securities held to maturity, gross unrealized losses	(858,829)	(1,173,432)
Securities held to maturity, fair value	263,364,722	254,641,285
Securities available for sale:
Securities available for sale, amortized cost	24,113,773	26,764,981
Securities available for sale, gross unrealized gains	839,125	872,985
Securities available for sale, gross unrealized losses	(23,243)	(59,378)
Securities available for sale, fair value	24,929,655	27,578,588
Other Securities [Member]
Securities held to maturity:
Securities held to maturity, amortized cost	1,050,000	1,050,000
Securities held to maturity, fair value	1,050,000	1,050,000
Securities available for sale:
Securities available for sale, amortized cost	1,637,366	1,108,124
Securities available for sale, gross unrealized gains	428,027	540,919
Securities available for sale, gross unrealized losses	(1,377)	(163)
Securities available for sale, fair value	2,064,016	1,648,880
US Government Agencies Debt Securities [Member]
Securities available for sale:
Securities available for sale, amortized cost	132,080,737	216,281,416
Securities available for sale, gross unrealized gains	786,623	104,524
Securities available for sale, gross unrealized losses	(125,538)	(2,848,561)
Securities available for sale, fair value	132,741,822	213,537,379
Residential Mortgage Backed Securities [Member]
Securities available for sale:
Securities available for sale, amortized cost	116,012,771	81,442,479
Securities available for sale, gross unrealized gains	761,091	511,095
Securities available for sale, gross unrealized losses	(321,488)	(1,283,439)
Securities available for sale, fair value	$ 116,452,374	$ 80,670,135

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Note 2 - Investment Securities (Details) - Securities in a Continuous Unrealized Loss Position - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Securities available for sale:
Securities available for sale, less than 12 months, fair value	$ 44,855,847	$ 155,478,459
Securities available for sale, less than 12 months, gross unrealized losses	(162,212)	(2,160,027)
Securities available for sale, 12 months or more, fair value	35,505,056	85,161,627
Securities available for sale, 12 months or more, gross unrealized losses	(309,434)	(2,031,514)
Securities available for sale, fair value	80,360,903	240,640,086
Securities available for sale, gross unrealized losses	(471,646)	(4,191,541)
US States and Political Subdivisions Debt Securities [Member]
Securities held to maturity:
Securities held to maturity, less than 12 months, fair value	16,874,982	14,803,408
Securities held to maturity, less than 12 months, gross unrealized losses	(669,283)	(294,438)
Securities held to maturity, 12 months or more, fair value	7,610,345	19,927,581
Securities held to maturity, 12 months or more, gross unrealized losses	(189,546)	(878,994)
Securities held to maturity, fair value	24,485,327	34,730,989
Securities held to maturity, gross unrealized losses	(858,829)	(1,173,432)
Securities available for sale:
Securities available for sale, less than 12 months, fair value	1,157,233	2,220,800
Securities available for sale, less than 12 months, gross unrealized losses	(2,185)	(31,807)
Securities available for sale, 12 months or more, fair value	849,972	848,329
Securities available for sale, 12 months or more, gross unrealized losses	(21,058)	(27,571)
Securities available for sale, fair value	2,007,205	3,069,129
Securities available for sale, gross unrealized losses	(23,243)	(59,378)
US Government Agencies Debt Securities [Member]
Securities available for sale:
Securities available for sale, less than 12 months, fair value	24,512,886	112,900,327
Securities available for sale, less than 12 months, gross unrealized losses	(76,931)	(1,397,591)
Securities available for sale, 12 months or more, fair value	4,946,100	64,476,661
Securities available for sale, 12 months or more, gross unrealized losses	(48,607)	(1,450,970)
Securities available for sale, fair value	29,458,986	177,376,988
Securities available for sale, gross unrealized losses	(125,538)	(2,848,561)
Residential Mortgage Backed Securities [Member]
Securities available for sale:
Securities available for sale, less than 12 months, fair value	18,687,105	40,356,921
Securities available for sale, less than 12 months, gross unrealized losses	(81,719)	(730,466)
Securities available for sale, 12 months or more, fair value	29,708,984	19,836,637
Securities available for sale, 12 months or more, gross unrealized losses	(239,769)	(552,973)
Securities available for sale, fair value	48,396,089	60,193,558
Securities available for sale, gross unrealized losses	(321,488)	(1,283,439)
Other Securities [Member]
Securities available for sale:
Securities available for sale, less than 12 months, fair value	498,623	411
Securities available for sale, less than 12 months, gross unrealized losses	(1,377)	(163)
Securities available for sale, fair value	498,623	411
Securities available for sale, gross unrealized losses	$ (1,377)	$ (163)

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Note 2 - Investment Securities (Details) - Sales of Securities - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Sales of Securities [Abstract]
Proceeds from sales of securities	$ 55,526,851	$ 54,971,056
Pre-tax gross gains from sales of securities	515,515	573,684
Pre-tax gross losses from sales of securities	$ (157,035)	$ (152,618)

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Note 2 - Investment Securities (Details) - Amortized Cost and Fair Value of Securities by Contractual Maturity - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Securities held to maturity:
Due in one year or less	$ 4,206,670
Due in one year or less	4,213,609
Due after one year through five years	20,737,843
Due after one year through five years	20,889,363
Due after five years	236,185,073
Due after five years	239,311,750
	261,129,586
	264,414,722	$ 255,691,285
Securities available for sale:
Due in one year or less	1,884,460
Due in one year or less	1,895,137
Due after one year through five years	68,198,829
Due after one year through five years	69,027,450
Due after five years	86,111,221
Due after five years	86,748,890
	156,194,510
	157,671,477
Amortized Cost	273,844,647
Fair Value	276,187,867
Securities held to maturity:
Amortized Cost	81,304,783
Fair Value	81,704,514
Residential Mortgage Backed Securities [Member]
Securities available for sale:
Amortized Cost	116,012,771
Fair Value	116,452,374
Other Securities [Member]
Securities held to maturity:
	1,050,000	1,050,000
Securities available for sale:
Amortized Cost	1,637,366
Fair Value	2,064,016
US States and Political Subdivisions Debt Securities [Member]
Securities held to maturity:
	263,364,722	$ 254,641,285
Callable Securities [Member] | US States and Political Subdivisions Debt Securities [Member]
Securities held to maturity:
Amortized Cost	15,335,099
Fair Value	15,728,025
Callable Securities [Member] | US Government-sponsored Enterprises Debt Securities [Member]
Securities held to maturity:
Amortized Cost	65,969,684
Fair Value	65,976,489
Callable Securities [Member] | US States and Political Subdivisions Debt Securities [Member]
Securities held to maturity:
Amortized Cost	135,926,431
Fair Value	$ 137,921,557

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Note 2 - Investment Securities (Details) - Amortized Cost and Fair Values of General Obligation Bonds by Issuer's State	Mar. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
General Obligation Bonds [Member]
Note 2 - Investment Securities (Details) - Amortized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of issuers	82	82
Amortized cost	$ 71,391,381	$ 66,683,832
Fair value	72,662,999	67,778,032
Average exposure per issuer (fair value)	$ 886,134	$ 826,561
General Obligation Bonds [Member] | IOWA
Note 2 - Investment Securities (Details) - Amortized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of issuers	15	15
Amortized cost	$ 19,974,438	$ 19,974,939
Fair value	20,309,435	20,247,108
Average exposure per issuer (fair value)	$ 1,353,962	$ 1,349,807
General Obligation Bonds [Member] | ILLINOIS
Note 2 - Investment Securities (Details) - Amortized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of issuers	10	9
Amortized cost	$ 12,665,888	$ 10,928,700
Fair value	13,014,865	11,264,348
Average exposure per issuer (fair value)	$ 1,301,487	$ 1,251,594
General Obligation Bonds [Member] | MISSOURI
Note 2 - Investment Securities (Details) - Amortized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of issuers	12	12
Amortized cost	$ 7,393,378	$ 7,924,800
Fair value	7,488,699	7,986,856
Average exposure per issuer (fair value)	$ 624,058	$ 665,571
General Obligation Bonds [Member] | NORTH DAKOTA
Note 2 - Investment Securities (Details) - Amortized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of issuers	6	5
Amortized cost	$ 16,403,026	$ 10,890,000
Fair value	16,616,824	11,050,235
Average exposure per issuer (fair value)	$ 2,769,471	$ 2,210,047
General Obligation Bonds [Member] | Other States [Member]
Note 2 - Investment Securities (Details) - Amortized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of issuers	39	41
Amortized cost	$ 14,954,651	$ 16,965,393
Fair value	15,233,176	17,229,485
Average exposure per issuer (fair value)	$ 390,594	$ 420,231
Revenue Bonds [Member]
Note 2 - Investment Securities (Details) - Amortized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of issuers	95	92
Amortized cost	$ 212,801,978	$ 212,705,308
Fair value	215,631,378	214,441,841
Average exposure per issuer (fair value)	$ 2,269,804	$ 2,330,890
Revenue Bonds [Member] | IOWA
Note 2 - Investment Securities (Details) - Amortized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of issuers	27	26
Amortized cost	$ 74,013,142	$ 70,773,660
Fair value	75,274,793	71,659,410
Average exposure per issuer (fair value)	$ 2,787,955	$ 2,756,131
Revenue Bonds [Member] | MISSOURI
Note 2 - Investment Securities (Details) - Amortized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of issuers	42	41
Amortized cost	$ 76,260,706	$ 78,593,590
Fair value	77,142,220	79,015,378
Average exposure per issuer (fair value)	$ 1,836,720	$ 1,927,204
Revenue Bonds [Member] | Other States [Member]
Note 2 - Investment Securities (Details) - Amortized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of issuers	5	5
Amortized cost	$ 11,162,489	$ 11,570,998
Fair value	11,422,830	11,735,678
Average exposure per issuer (fair value)	$ 2,284,566	$ 2,347,136
Revenue Bonds [Member] | INDIANA
Note 2 - Investment Securities (Details) - Amortized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of issuers	17	17
Amortized cost	$ 39,342,789	$ 40,018,381
Fair value	39,675,326	40,210,320
Average exposure per issuer (fair value)	$ 2,333,843	$ 2,365,313
Revenue Bonds [Member] | KANSAS
Note 2 - Investment Securities (Details) - Amortized Cost and Fair Values of General Obligation Bonds by Issuer's State [Line Items]
Number of issuers	4	3
Amortized cost	$ 12,022,852	$ 11,748,679
Fair value	12,116,209	11,821,055
Average exposure per issuer (fair value)	$ 3,029,052	$ 3,940,352

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Note 3 - Loans/Leases Receivable (Details)	3 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2015 USD ($)	Dec. 31, 2015 USD ($)
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Losses On Residual Value	$ 0	$ 0
Financing Receivable, Recorded Investment, Nonaccrual Status	10,772,347		$ 10,648,211
Financing Receivable, Modifications, Recorded Investment	$ 2,732,887		2,587,413
Financing Receivable, Modifications, Number of Contracts	5	0
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	0	0
Troubled Debt Restructurings [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 1,576,057		1,533,657
Nonaccrual [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Modifications, Number of Contracts	0
Residential Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group, Mortgage	$ 765,385		565,850
Financing Receivable, Recorded Investment, Nonaccrual Status	1,051,643		1,016,743
Residential Portfolio Segment [Member] | Troubled Debt Restructurings [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	115,671		119,305
Commercial Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	5,648,002		5,791,975
Commercial Portfolio Segment [Member] | Troubled Debt Restructurings [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,217,243		1,164,423
Commercial Real Estate Portfolio Segment [Member] | Troubled Debt Restructurings [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	191,366		193,804
Finance Leases Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	1,796,456		1,701,341
Finance Leases Portfolio Segment [Member] | Troubled Debt Restructurings [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	37,750		42,098
Consumer Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	319,793		109,117
Consumer Portfolio Segment [Member] | Troubled Debt Restructurings [Member]
Note 3 - Loans/Leases Receivable (Details) [Line Items]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 14,027		$ 14,027

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Note 3 - Loans/Leases Receivable (Details) - Composition of the Loan/Lease Portfolio - USD ($)		Mar. 31, 2016		Dec. 31, 2015		Mar. 31, 2015	Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases		$ 1,865,928,672		$ 1,790,286,285
Plus deferred loan/lease orgination costs, net of fees		7,894,944		7,736,390
Gross loans/leases receivable		1,873,823,616		1,798,022,675
Less allowance for estimated losses on loans/leases		(27,395,442)		(26,140,906)		$ (23,883,273)	$ (23,074,365)
		1,846,428,174		1,771,881,769
Commercial Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases		682,056,782		648,159,892
Less allowance for estimated losses on loans/leases		(10,991,979)		(10,484,080)		(9,177,164)	(8,833,832)
Commercial Real Estate Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases		766,159,365		724,368,765
Less allowance for estimated losses on loans/leases		(10,090,567)		(9,375,117)		(8,838,204)	(8,353,386)
Commercial Real Estate Portfolio Segment [Member] | Owner-occupied Commercial Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases		261,730,899		252,523,164
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases		37,970,546		49,083,844
Commercial Real Estate Portfolio Segment [Member] | Other Non Owner-occupied Commercial Real Estate Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases		466,457,920		422,761,757
Finance Leases Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	[1],[2]	172,774,048		173,655,605
Plus deferred loan/lease orgination costs, net of fees	[1]	6,493,124		6,594,582
Gross loans/leases receivable	[1]	179,267,172		180,250,187
Less allowance for estimated losses on loans/leases		(3,287,230)	[1]	(3,395,088)	[1]	(3,227,458)	(3,359,400)
	[1]	175,979,942		176,855,099
Net minimum lease payments to be received	[1]	194,005,721		195,476,230
Estimated unguaranteed residual values of leased assets	[1]	1,131,634		1,165,706
Unearned lease/residual income	[1]	(22,363,307)		(22,986,331)
Residential Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	[2],[3]	173,096,209		170,432,530
Less allowance for estimated losses on loans/leases		(1,836,622)		(1,790,150)		(1,597,754)	(1,525,952)
Consumer Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	[2]	71,842,268		73,669,493
Less allowance for estimated losses on loans/leases		$ (1,189,043)		$ (1,096,471)		$ (1,042,693)	$ (1,001,795)

[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, which is combined with 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 residualvalues for the three months ended March 31, 2016 and 2015.

[2] 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 TDRs.

[3] Includes residential real estate loans held for sale totaling $765,385 and $565,850 as of March 31, 2016, and December 31, 2015, respectively.

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Note 3 - Loans/Leases Receivable (Details) - Aging of the Loan/Lease Portfolio - USD ($)		Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		$ 1,847,404,693	$ 1,771,618,511
Accruing Past Due 90 Days or More		46,418	2,843
Nonaccrual Loans/Leases		10,772,347	10,648,211
Total		$ 1,865,928,672	$ 1,790,286,285
Current as a percentage of total loan/lease portfolio		99.01%	98.96%
Accruing past due 90 days or more as a percentage of total loan/lease portfolio		0.00%	0.00%
Nonaccrual Loans/Leases as a percentage of total loan/lease portfolio		0.58%	0.59%
Loans and leases as a percentage of total loan/lease portfolio		100.00%	100.00%
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		$ 6,802,766	$ 7,138,000
Past due as a percentage of total loan/lease portfolio		0.36%	0.40%
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		$ 902,448	$ 878,720
Past due as a percentage of total loan/lease portfolio		0.05%	0.05%
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		$ 674,901,078	$ 640,725,241
Nonaccrual Loans/Leases		5,648,002	5,791,975
Total		$ 682,056,782	$ 648,159,892
Loans and leases as a percentage of total loan/lease portfolio		48.60%	50.96%
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		$ 1,038,410	$ 1,636,860
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		469,292	5,816
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total		766,159,365	724,368,765
Commercial Real Estate Portfolio Segment [Member] | Owner-occupied Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		260,963,128	251,612,752
Nonaccrual Loans/Leases		658,561	727,463
Total		$ 261,730,899	$ 252,523,164
Loans and leases as a percentage of total loan/lease portfolio		5.50%	6.22%
Commercial Real Estate Portfolio Segment [Member] | Owner-occupied Commercial Real Estate Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		$ 109,210	$ 182,949
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		37,779,180	48,890,040
Nonaccrual Loans/Leases		191,366	193,804
Total		$ 37,970,546	$ 49,083,844
Loans and leases as a percentage of total loan/lease portfolio		1.60%	1.66%
Commercial Real Estate Portfolio Segment [Member] | Other Non Owner-occupied Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		$ 464,239,777	$ 420,819,874
Nonaccrual Loans/Leases		1,106,526	1,107,768
Total		$ 466,457,920	$ 422,761,757
Loans and leases as a percentage of total loan/lease portfolio		9.24%	9.46%
Commercial Real Estate Portfolio Segment [Member] | Other Non Owner-occupied Commercial Real Estate Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		$ 898,733	$ 614,732
Commercial Real Estate Portfolio Segment [Member] | Other Non Owner-occupied Commercial Real Estate Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		212,884	219,383
Finance Leases Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		169,792,466	170,021,289
Accruing Past Due 90 Days or More			2,843
Nonaccrual Loans/Leases		1,796,456	1,701,341
Total	[1],[2]	$ 172,774,048	$ 173,655,605
Loans and leases as a percentage of total loan/lease portfolio		18.81%	14.56%
Finance Leases Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		$ 977,630	$ 1,490,818
Finance Leases Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		207,496	439,314
Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		168,865,064	166,415,118
Accruing Past Due 90 Days or More		46,256
Nonaccrual Loans/Leases		1,051,643	1,016,743
Total	[2],[3]	$ 173,096,209	$ 170,432,530
Loans and leases as a percentage of total loan/lease portfolio		12.49%	12.12%
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		$ 3,133,246	$ 2,800,589
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due			200,080
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current		70,864,000	73,134,197
Accruing Past Due 90 Days or More		162
Nonaccrual Loans/Leases		319,793	109,117
Total	[2]	$ 71,842,268	$ 73,669,493
Loans and leases as a percentage of total loan/lease portfolio		3.76%	5.02%
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		$ 645,537	$ 412,052
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due		$ 12,776	$ 14,127

[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, which is combined with 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 residualvalues for the three months ended March 31, 2016 and 2015.

[2] 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 TDRs.

[3] Includes residential real estate loans held for sale totaling $765,385 and $565,850 as of March 31, 2016, and December 31, 2015, respectively.

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Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases - USD ($)		Mar. 31, 2016		Dec. 31, 2015
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing Past Due 90 Days or More		$ 46,418		$ 2,843
Nonaccrual Loans/Leases		10,772,347		10,648,211
Troubled Debt Restructurings - Accruing		2,732,887		2,587,413
Total Nonperforming Loans/Leases		$ 1,865,928,672		$ 1,790,286,285
Percentage of Total Nonperforming Loans/Leases		100.00%		100.00%
Nonperforming Financial Instruments [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing Past Due 90 Days or More		$ 46,418		$ 2,843
Nonaccrual Loans/Leases		10,772,347	[1]	10,648,211	[2]
Troubled Debt Restructurings - Accruing		1,156,830		1,053,756
Total Nonperforming Loans/Leases		11,975,595		11,704,810
Commercial Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual Loans/Leases		5,648,002		5,791,975
Total Nonperforming Loans/Leases		$ 682,056,782		$ 648,159,892
Percentage of Total Nonperforming Loans/Leases		48.60%		50.96%
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual Loans/Leases		$ 5,648,002	[1]	$ 5,791,975	[2]
Troubled Debt Restructurings - Accruing		172,093		173,087
Total Nonperforming Loans/Leases		5,820,095		5,965,062
Commercial Real Estate Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Total Nonperforming Loans/Leases		766,159,365		724,368,765
Commercial Real Estate Portfolio Segment [Member] | Owner-occupied Commercial Real Estate Loans [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual Loans/Leases		658,561		727,463
Total Nonperforming Loans/Leases		$ 261,730,899		$ 252,523,164
Percentage of Total Nonperforming Loans/Leases		5.50%		6.22%
Commercial Real Estate Portfolio Segment [Member] | Owner-occupied Commercial Real Estate Loans [Member] | Nonperforming Financial Instruments [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual Loans/Leases		$ 658,561	[1]	$ 727,463	[2]
Total Nonperforming Loans/Leases		658,561		727,463
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual Loans/Leases		191,366		193,804
Total Nonperforming Loans/Leases		$ 37,970,546		$ 49,083,844
Percentage of Total Nonperforming Loans/Leases		1.60%		1.66%
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Nonperforming Financial Instruments [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual Loans/Leases		$ 191,366	[1]	$ 193,804	[2]
Total Nonperforming Loans/Leases		191,366		193,804
Commercial Real Estate Portfolio Segment [Member] | Other Non Owner-occupied Commercial Real Estate Loans [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual Loans/Leases		1,106,526		1,107,768
Total Nonperforming Loans/Leases		$ 466,457,920		$ 422,761,757
Percentage of Total Nonperforming Loans/Leases		9.24%		9.46%
Commercial Real Estate Portfolio Segment [Member] | Other Non Owner-occupied Commercial Real Estate Loans [Member] | Nonperforming Financial Instruments [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Nonaccrual Loans/Leases		$ 1,106,526	[1]	$ 1,107,768	[2]
Total Nonperforming Loans/Leases		1,106,526		1,107,768
Finance Leases Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing Past Due 90 Days or More				2,843
Nonaccrual Loans/Leases		1,796,456		1,701,341
Total Nonperforming Loans/Leases	[3],[4]	$ 172,774,048		$ 173,655,605
Percentage of Total Nonperforming Loans/Leases		18.81%		14.56%
Finance Leases Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing Past Due 90 Days or More				$ 2,843
Nonaccrual Loans/Leases		$ 1,796,456	[1]	1,701,341	[2]
Troubled Debt Restructurings - Accruing		456,592
Total Nonperforming Loans/Leases	[4]	2,253,048		1,704,184
Residential Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing Past Due 90 Days or More		46,256
Nonaccrual Loans/Leases		1,051,643		1,016,743
Total Nonperforming Loans/Leases	[4],[5]	$ 173,096,209		$ 170,432,530
Percentage of Total Nonperforming Loans/Leases		12.49%		12.12%
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing Past Due 90 Days or More		$ 46,256
Nonaccrual Loans/Leases		1,051,643	[1]	$ 1,016,743	[2]
Troubled Debt Restructurings - Accruing		398,337		402,044
Total Nonperforming Loans/Leases	[4]	1,496,236		1,418,787
Consumer Portfolio Segment [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing Past Due 90 Days or More		162
Nonaccrual Loans/Leases		319,793		109,117
Total Nonperforming Loans/Leases	[4]	$ 71,842,268		$ 73,669,493
Percentage of Total Nonperforming Loans/Leases		3.76%		5.02%
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Note 3 - Loans/Leases Receivable (Details) - Nonperforming Loans/Leases [Line Items]
Accruing Past Due 90 Days or More		$ 162
Nonaccrual Loans/Leases		319,793	[1]	$ 109,117	[2]
Troubled Debt Restructurings - Accruing		129,808		478,625
Total Nonperforming Loans/Leases	[4]	$ 449,763		$ 587,742

[1] Nonaccrual loans/leases included $1,576,057 of TDRs, including $1,217,243 in C&I loans, $191,366 in CRE loans, $37,750 in direct financing leases, $115,671 inresidential real estate loans, and $14,027 in installment loans.

[2] Nonaccrual loans/leases included $1,533,657 of TDRs, including $1,164,423 in C&I loans, $193,804 in CRE loans, $42,098 in direct financing leases, $119,305 inresidential real estate loans, and $14,027 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, which is combined with 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 residualvalues for the three months ended March 31, 2016 and 2015.

[4] 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 TDRs.

[5] Includes residential real estate loans held for sale totaling $765,385 and $565,850 as of March 31, 2016, and December 31, 2015, respectively.

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Note 3 - Loans/Leases Receivable (Details) - Allowance for Estimated Losses on Loans/Leases - USD ($)		3 Months Ended
		Mar. 31, 2016		Mar. 31, 2015	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance		$ 26,140,906		$ 23,074,365
Balance		27,395,442		23,883,273
Impaired loans/leases		11,323,779			$ 11,023,387
Nonimpaired loans/leases		1,854,604,893			1,779,262,898
Loans and leases		$ 1,865,928,672			$ 1,790,286,285
Allowance as a percentage of impaired loans/leases		28.08%			29.98%
Allowance as a percentage of nonimpaired loans/leases		1.31%			1.28%
Total allowance as a percentage of total loans/leases		1.46%			1.45%
Allowance for impaired loans/leases		$ 3,179,854			$ 3,304,287
Allowance for nonimpaired loans/leases		24,215,588			22,836,619
Provisions charged to expense		2,072,985		1,710,456
Loans/leases charged off		(868,284)		(1,107,663)
Recoveries on loans/leases previously charged off		49,835		206,115
Commercial Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance		10,484,080		8,833,832
Balance		10,991,979		9,177,164
Impaired loans/leases		5,178,446			5,286,482
Nonimpaired loans/leases		676,878,336			642,873,410
Loans and leases		$ 682,056,782			$ 648,159,892
Allowance as a percentage of impaired loans/leases		41.87%			49.04%
Allowance as a percentage of nonimpaired loans/leases		1.30%			1.23%
Total allowance as a percentage of total loans/leases		1.61%			1.62%
Allowance for impaired loans/leases		$ 2,168,454			$ 2,592,270
Allowance for nonimpaired loans/leases		8,823,525			7,891,810
Provisions charged to expense		739,831		388,641
Loans/leases charged off		(243,566)		(200,301)
Recoveries on loans/leases previously charged off		11,634		154,992
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance		9,375,117		8,353,386
Balance		10,090,567		8,838,204
Impaired loans/leases		1,946,451			2,029,035
Nonimpaired loans/leases		764,212,914			722,339,730
Loans and leases		$ 766,159,365			$ 724,368,765
Allowance as a percentage of impaired loans/leases		4.23%			3.79%
Allowance as a percentage of nonimpaired loans/leases		1.31%			1.29%
Total allowance as a percentage of total loans/leases		1.32%			1.29%
Allowance for impaired loans/leases		$ 82,296			$ 76,934
Allowance for nonimpaired loans/leases		10,008,271			9,298,183
Provisions charged to expense		715,450		835,894
Loans/leases charged off				(351,076)
Finance Leases Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance		3,395,088	[1]	3,359,400
Balance		3,287,230	[1]	3,227,458
Impaired loans/leases		2,253,046			1,701,341
Nonimpaired loans/leases		170,521,002			171,954,264
Loans and leases	[1],[2]	$ 172,774,048			$ 173,655,605
Allowance as a percentage of impaired loans/leases		21.45%			18.00%
Allowance as a percentage of nonimpaired loans/leases		1.64%			1.80%
Total allowance as a percentage of total loans/leases		1.90%			1.96%
Allowance for impaired loans/leases		$ 483,193			$ 306,193
Allowance for nonimpaired loans/leases		2,804,038			3,088,895
Provisions charged to expense		478,245		403,452
Loans/leases charged off		(600,938)		(547,492)
Recoveries on loans/leases previously charged off		14,836		12,098
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance		1,790,150		1,525,952
Balance		1,836,622		1,597,754
Impaired loans/leases		1,496,236			1,418,787
Nonimpaired loans/leases		171,599,973			169,013,743
Loans and leases	[2],[3]	$ 173,096,209			$ 170,432,530
Allowance as a percentage of impaired loans/leases		13.33%			13.10%
Allowance as a percentage of nonimpaired loans/leases		0.95%			0.95%
Total allowance as a percentage of total loans/leases		1.06%			1.05%
Allowance for impaired loans/leases		$ 199,498			$ 185,801
Allowance for nonimpaired loans/leases		1,637,124			1,604,349
Provisions charged to expense		62,656		71,802
Loans/leases charged off		(16,184)
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Balance		1,096,471		1,001,795
Balance		1,189,043		1,042,693
Impaired loans/leases		449,600			587,742
Nonimpaired loans/leases		71,392,668			73,081,751
Loans and leases	[2]	$ 71,842,268			$ 73,669,493
Allowance as a percentage of impaired loans/leases		54.81%			24.35%
Allowance as a percentage of nonimpaired loans/leases		1.32%			1.30%
Total allowance as a percentage of total loans/leases		1.66%			1.49%
Allowance for impaired loans/leases		$ 246,413			$ 143,089
Allowance for nonimpaired loans/leases		942,630			$ 953,382
Provisions charged to expense		76,803		10,667
Loans/leases charged off		(7,596)		(8,794)
Recoveries on loans/leases previously charged off		$ 23,365		$ 39,025

[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, which is combined with 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 residualvalues for the three months ended March 31, 2016 and 2015.

[2] 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 TDRs.

[3] Includes residential real estate loans held for sale totaling $765,385 and $565,850 as of March 31, 2016, and December 31, 2015, respectively.

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Note 3 - Loans/Leases Receivable (Details) - Impaired Loans/Leases - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded investment with no specific allowance recorded	$ 3,989,038	$ 3,339,899	$ 3,932,541
Unpaid principal balance with no specific allowance recorded	4,312,955	5,143,621	4,402,147
Average recorded investment with no specific allowance recorded	4,112,488	5,612,771
Interest income recognized with no specific allowance recorded	14,465	6,441
Interest income recognized for cash payments received with no specific allowance recorded	14,465	6,441
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded investment with specific allowance recorded	7,334,741	11,763,877	7,090,846
Unpaid principal balance with specific allowance recorded	7,386,158	12,226,348	7,106,685
Related allowance	3,179,854	4,072,935	3,304,287
Average recorded investment with specific allowance recorded	7,056,097	11,601,237
Interest income recognized with specific allowance recorded	3,458	5,090
Interest income recognized for cash payments received with specific allowance recorded	3,458	5,090
Total Impaired Loans/Leases:
Recorded investment	11,323,779	15,103,776	11,023,387
Unpaid principal balance	11,699,113	17,369,969	11,508,832
Related allowance	3,179,854	4,072,935	3,304,287
Average recorded investment	11,168,585	17,214,008
Interest income recognized	17,923	11,531
Interest income recognized for cash payments received	17,923	11,531
Commercial Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded investment with no specific allowance recorded	286,508	331,612	234,636
Unpaid principal balance with no specific allowance recorded	477,450	425,636	346,072
Average recorded investment with no specific allowance recorded	347,369	1,352,320
Interest income recognized with no specific allowance recorded	1,824	1,849
Interest income recognized for cash payments received with no specific allowance recorded	1,824	1,849
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded investment with specific allowance recorded	4,891,938	4,969,554	5,051,846
Unpaid principal balance with specific allowance recorded	4,895,777	4,973,392	5,055,685
Related allowance	2,168,454	2,513,023	2,592,270
Average recorded investment with specific allowance recorded	4,885,096	4,938,115
Total Impaired Loans/Leases:
Recorded investment	5,178,446	5,301,166	5,286,482
Unpaid principal balance	5,373,227	5,399,028	5,401,757
Related allowance	2,168,454	2,513,023	2,592,270
Average recorded investment	5,232,465	6,290,435
Interest income recognized	1,824	1,849
Interest income recognized for cash payments received	1,824	1,849
Commercial Real Estate Portfolio Segment [Member] | Owner-occupied Commercial Real Estate Loans [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded investment with no specific allowance recorded	242,887	173,131	256,761
Unpaid principal balance with no specific allowance recorded	336,661	269,354	350,535
Average recorded investment with no specific allowance recorded	244,824	189,621
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded investment with specific allowance recorded		454,980
Unpaid principal balance with specific allowance recorded		454,980
Related allowance		15,154
Average recorded investment with specific allowance recorded		468,590
Total Impaired Loans/Leases:
Recorded investment	242,887	628,111	256,761
Unpaid principal balance	336,661	724,334	350,535
Related allowance		15,154
Average recorded investment	244,824	658,211
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded investment with no specific allowance recorded		171,186
Unpaid principal balance with no specific allowance recorded		511,204	228,818
Average recorded investment with no specific allowance recorded		171,186
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded investment with specific allowance recorded	191,366	197,225	193,804
Unpaid principal balance with specific allowance recorded	203,366	209,225	205,804
Related allowance	82,296	46,570	76,934
Average recorded investment with specific allowance recorded	192,585	197,526
Total Impaired Loans/Leases:
Recorded investment	191,366	368,411	193,804
Unpaid principal balance	203,366	720,429	434,622
Related allowance	82,296	46,570	76,934
Average recorded investment	192,585	368,712
Commercial Real Estate Portfolio Segment [Member] | Other Non Owner-occupied Commercial Real Estate Loans [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded investment with no specific allowance recorded	1,512,198	290,577	1,578,470
Unpaid principal balance with no specific allowance recorded	1,512,198	1,528,456	1,578,470
Average recorded investment with no specific allowance recorded	1,545,334	1,102,174
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded investment with specific allowance recorded		4,208,602
Unpaid principal balance with specific allowance recorded		4,655,235
Related allowance		767,113
Average recorded investment with specific allowance recorded		4,335,446
Total Impaired Loans/Leases:
Recorded investment	1,512,198	4,499,179	1,578,470
Unpaid principal balance	1,512,198	6,183,691	1,578,470
Related allowance		767,113
Average recorded investment	1,545,334	5,437,620
Finance Leases Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded investment with no specific allowance recorded	1,314,779	665,735	871,884
Unpaid principal balance with no specific allowance recorded	1,314,779	665,735	871,884
Average recorded investment with no specific allowance recorded	1,176,588	1,009,487
Interest income recognized with no specific allowance recorded	11,603	4,109
Interest income recognized for cash payments received with no specific allowance recorded	11,603	4,109
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded investment with specific allowance recorded	938,267	457,463	829,457
Unpaid principal balance with specific allowance recorded	938,267	457,463	829,457
Related allowance	483,193	283,485	306,193
Average recorded investment with specific allowance recorded	800,606	380,548
Total Impaired Loans/Leases:
Recorded investment	2,253,046	1,123,198	1,701,341
Unpaid principal balance	2,253,046	1,123,198	1,701,341
Related allowance	483,193	283,485	306,193
Average recorded investment	1,977,194	1,390,035
Interest income recognized	11,603	4,109
Interest income recognized for cash payments received	11,603	4,109
Residential Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded investment with no specific allowance recorded	585,186	981,608	613,486
Unpaid principal balance with no specific allowance recorded	624,387	1,017,186	649,064
Average recorded investment with no specific allowance recorded	585,981	1,089,298
Interest income recognized with no specific allowance recorded	1,038	483
Interest income recognized for cash payments received with no specific allowance recorded	1,038	483
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded investment with specific allowance recorded	911,050	864,957	805,301
Unpaid principal balance with specific allowance recorded	946,628	864,957	805,301
Related allowance	199,498	180,160	185,801
Average recorded investment with specific allowance recorded	871,531	728,349
Interest income recognized with specific allowance recorded	1,958	2,830
Interest income recognized for cash payments received with specific allowance recorded	1,958	2,830
Total Impaired Loans/Leases:
Recorded investment	1,496,236	1,846,565	1,418,787
Unpaid principal balance	1,571,015	1,882,143	1,454,365
Related allowance	199,498	180,160	185,801
Average recorded investment	1,457,512	1,817,647
Interest income recognized	2,996	3,313
Interest income recognized for cash payments received	2,996	3,313
Consumer Portfolio Segment [Member]
Impaired Loans/Leases with No Specific Allowance Recorded:
Recorded investment with no specific allowance recorded	47,480	726,050	377,304
Unpaid principal balance with no specific allowance recorded	47,480	726,050	377,304
Average recorded investment with no specific allowance recorded	212,392	698,685
Impaired Loans/Leases with Specific Allowance Recorded:
Recorded investment with specific allowance recorded	402,120	611,096	210,438
Unpaid principal balance with specific allowance recorded	402,120	611,096	210,438
Related allowance	246,413	267,430	143,089
Average recorded investment with specific allowance recorded	306,279	552,663
Interest income recognized with specific allowance recorded	1,500	2,260
Interest income recognized for cash payments received with specific allowance recorded	1,500	2,260
Total Impaired Loans/Leases:
Recorded investment	449,600	1,337,146	587,742
Unpaid principal balance	449,600	1,337,146	587,742
Related allowance	246,413	267,430	$ 143,089
Average recorded investment	518,671	1,251,348
Interest income recognized	1,500	2,260
Interest income recognized for cash payments received	$ 1,500	$ 2,260

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Note 3 - Loans/Leases Receivable (Details) - Loans/Leases By Credit Quality Indicators - USD ($)		Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans		$ 1,865,928,672	$ 1,790,286,285
Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		11,975,595	11,704,810
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		682,056,782	648,159,892
Commercial Portfolio Segment [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		647,678,612	616,200,797
Commercial Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		12,346,445	18,031,845
Commercial Portfolio Segment [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		22,031,725	13,927,250
Commercial Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		5,820,095	5,965,062
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		766,159,365	724,368,765
Commercial Real Estate Portfolio Segment [Member] | Owner-occupied Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		261,730,899	252,523,164
Commercial Real Estate Portfolio Segment [Member] | Owner-occupied Commercial Real Estate Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		250,031,858	238,119,608
Commercial Real Estate Portfolio Segment [Member] | Owner-occupied Commercial Real Estate Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		3,376,191	8,630,658
Commercial Real Estate Portfolio Segment [Member] | Owner-occupied Commercial Real Estate Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		8,322,850	5,772,898
Commercial Real Estate Portfolio Segment [Member] | Owner-occupied Commercial Real Estate Loans [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		658,561	727,463
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		37,970,546	49,083,844
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		35,892,683	46,929,876
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		1,780,000	1,780,000
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		297,863	373,968
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		191,366	193,804
Commercial Real Estate Portfolio Segment [Member] | Other Non Owner-occupied Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		466,457,920	422,761,757
Commercial Real Estate Portfolio Segment [Member] | Other Non Owner-occupied Commercial Real Estate Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		448,275,195	406,027,442
Commercial Real Estate Portfolio Segment [Member] | Other Non Owner-occupied Commercial Real Estate Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		10,562,085	8,846,286
Commercial Real Estate Portfolio Segment [Member] | Other Non Owner-occupied Commercial Real Estate Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		7,620,640	7,888,029
Commercial Real Estate Portfolio Segment [Member] | Other Non Owner-occupied Commercial Real Estate Loans [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		1,106,526	1,107,768
Commercial and Commercial Real Estate Portfolio Segments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		$ 1,448,216,147	$ 1,372,528,657
As a % of Total		100.00%	100.00%
Commercial and Commercial Real Estate Portfolio Segments [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		$ 1,381,878,348	$ 1,307,277,723
As a % of Total		95.42%	95.24%
Commercial and Commercial Real Estate Portfolio Segments [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		$ 28,064,721	$ 37,288,789
As a % of Total		1.94%	2.72%
Commercial and Commercial Real Estate Portfolio Segments [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans		$ 38,273,078	$ 27,962,145
As a % of Total		2.64%	2.04%
Finance Leases Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	[1],[2]	$ 172,774,048	$ 173,655,605
Finance Leases Portfolio Segment [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	[2]	170,521,000	171,951,421
Finance Leases Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	[2]	2,253,048	1,704,184
Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	[2],[3]	173,096,209	170,432,530
Residential Portfolio Segment [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	[2]	171,599,973	169,013,743
Residential Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	[2]	1,496,236	1,418,787
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	[2]	71,842,268	73,669,493
Consumer Portfolio Segment [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	[2]	71,392,505	73,081,751
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	[2]	449,763	587,742
Lease, Residential and Consumer Portfolio Segments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	[2]	$ 417,712,525	$ 417,757,628
As a % of Total	[2]	100.00%	100.00%
Lease, Residential and Consumer Portfolio Segments [Member] | Performing Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	[2]	$ 413,513,478	$ 414,046,915
As a % of Total	[2]	98.99%	99.11%
Lease, Residential and Consumer Portfolio Segments [Member] | Nonperforming Financial Instruments [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans	[2]	$ 4,199,047	$ 3,710,713
As a % of Total	[2]	1.01%	0.89%

[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, which is combined with 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 residualvalues for the three months ended March 31, 2016 and 2015.

[2] 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 TDRs.

[3] Includes residential real estate loans held for sale totaling $765,385 and $565,850 as of March 31, 2016, and December 31, 2015, respectively.

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Note 3 - Loans/Leases Receivable (Details) - Troubled Debt Restructurings	3 Months Ended
	Mar. 31, 2016 USD ($)	Mar. 31, 2015
Financing Receivable, Modifications [Line Items]
Number of Loans/Leases	5	0
Pre-Modification Recorded Investment	$ 456,592
Post-Modification Recorded Investment	$ 456,592
Extended Maturity [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans/Leases	4
Pre-Modification Recorded Investment	$ 410,653
Post-Modification Recorded Investment	$ 410,653
Payment Deferral [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans/Leases	1
Pre-Modification Recorded Investment	$ 45,939
Post-Modification Recorded Investment	$ 45,939
Finance Leases Portfolio Segment [Member] | Extended Maturity [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans/Leases	4
Pre-Modification Recorded Investment	$ 410,653
Post-Modification Recorded Investment	$ 410,653
Finance Leases Portfolio Segment [Member] | Payment Deferral [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans/Leases	1
Pre-Modification Recorded Investment	$ 45,939
Post-Modification Recorded Investment	$ 45,939

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Note 4 - Borrowings (Details)	3 Months Ended
	Mar. 31, 2016 USD ($)
Note 4 - Borrowings (Details) [Line Items]
Repayments of Other Debt	$ 10,759,000
Repayments of Federal Home Loan Bank Borrowings	$ 10,524,197
Short-term Debt, Weighted Average Interest Rate	0.50%
Junior Subordinated Debt [Member] | Note Payable to QCR Holdings Capital Trust IV [Member]
Note 4 - Borrowings (Details) [Line Items]
Extinguishment of Debt, Amount	$ 5,100,000
Gain (Loss) on Extinguishment of Debt	$ 1,200,000
Debt Instrument, Interest Rate, Effective Percentage	2.42%
Junior Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member]
Note 4 - Borrowings (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.80%
Wholesale Repurchase Agreements [Member]
Note 4 - Borrowings (Details) [Line Items]
Repayments of Other Debt	$ 10,000,000
Wholesale Repurchase Agreement and FHLB Advances [Member]
Note 4 - Borrowings (Details) [Line Items]
Gain (Loss) on Extinguishment of Debt	$ (1,300,000)
Debt Instrument, Interest Rate, Stated Percentage	3.92%
Extinguished Debt, Weighted Average Term	2 years 62 days

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Note 5 - Earnings Per Share (Details) - Earnings Per Share - Basic and Diluted - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share, Basic and Diluted [Abstract]
Net income (in Dollars)	$ 6,373,489	$ 4,177,889
Basic earnings per common share (in Dollars per share)	$ 0.54	$ 0.52
Diluted earnings per common share (in Dollars per share)	$ 0.53	$ 0.52
Weighted average common shares outstanding	11,793,620	7,975,910
Weighted average common shares issuable upon exercise of stock options and under the employee stock purchase plan	160,329	121,534
Weighted average common and common equivalent shares outstanding	11,953,949	8,097,444

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Note 6 - Fair Value (Details) - Assets Measured at Fair Value on a Recurring Basis - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Securities available for sale:
U.S. govt. sponsored agency securities	$ 276,187,867	$ 323,434,982
Derivative instruments	450,651	856,024
	276,638,518	324,291,006
Impaired loans/leases	12,183,927	12,268,677
Impaired Loans/Leases [Member]
Securities available for sale:
Impaired loans/leases	4,969,221	4,545,966
Other Real Estate Owned [Member]
Securities available for sale:
Impaired loans/leases	7,214,706	7,722,711
US Government Agencies Debt Securities [Member]
Securities available for sale:
U.S. govt. sponsored agency securities	132,741,822	213,537,379
Residential Mortgage Backed Securities [Member]
Securities available for sale:
U.S. govt. sponsored agency securities	116,452,374	80,670,135
US States and Political Subdivisions Debt Securities [Member]
Securities available for sale:
U.S. govt. sponsored agency securities	24,929,655	27,578,588
Other Securities [Member]
Securities available for sale:
U.S. govt. sponsored agency securities	2,064,016	1,648,880
Fair Value, Inputs, Level 1 [Member]
Securities available for sale:
	779	411
Fair Value, Inputs, Level 1 [Member] | Other Securities [Member]
Securities available for sale:
U.S. govt. sponsored agency securities	779	411
Fair Value, Inputs, Level 2 [Member]
Securities available for sale:
Derivative instruments	450,651	856,024
	276,637,739	324,290,595
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member]
Securities available for sale:
U.S. govt. sponsored agency securities	132,741,822	213,537,379
Fair Value, Inputs, Level 2 [Member] | Residential Mortgage Backed Securities [Member]
Securities available for sale:
U.S. govt. sponsored agency securities	116,452,374	80,670,135
Fair Value, Inputs, Level 2 [Member] | US States and Political Subdivisions Debt Securities [Member]
Securities available for sale:
U.S. govt. sponsored agency securities	24,929,655	27,578,588
Fair Value, Inputs, Level 2 [Member] | Other Securities [Member]
Securities available for sale:
U.S. govt. sponsored agency securities	2,063,237	1,648,469
Fair Value, Inputs, Level 3 [Member]
Securities available for sale:
Impaired loans/leases	12,183,927	12,268,677
Fair Value, Inputs, Level 3 [Member] | Impaired Loans/Leases [Member]
Securities available for sale:
Impaired loans/leases	4,969,221	4,545,966
Fair Value, Inputs, Level 3 [Member] | Other Real Estate Owned [Member]
Securities available for sale:
Impaired loans/leases	$ 7,214,706	$ 7,722,711

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Note 6 - Fair Value (Details) - Quantitative Information About Level Fair Value Measurements - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 12,183,927	$ 12,268,677
Impaired Loans/Leases [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 4,969,221	4,545,966
Valuation technique	Appraisal of collateral
Other Securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Fair value	$ 7,214,706	$ 7,722,711
Valuation technique	Appraisal of collateral
Minimum [Member] | Impaired Loans/Leases [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Appraisal adjustments	(10.00%)
Minimum [Member] | Other Securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Appraisal adjustments	0.00%
Maximum [Member] | Impaired Loans/Leases [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Appraisal adjustments	(50.00%)
Maximum [Member] | Other Securities [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Appraisal adjustments	(35.00%)

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Note 6 - Fair Value (Details) - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Note 6 - Fair Value (Details) - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities [Line Items]
Cash and due from banks	$ 44,930,836	$ 41,742,321
Federal funds sold	15,740,000	19,850,000
Interest-bearing deposits at financial institutions	41,489,171	36,313,965
Investment securities:
Held to maturity	261,129,586
Held to maturity	264,414,722	255,691,285
Available for sale	276,187,867	323,434,982
Derivative instruments	450,651	856,024
Deposits:
Deposits	1,989,573,089	1,880,666,184
Other borrowings	100,000,000	110,000,000
Fair Value, Inputs, Level 1 [Member]
Note 6 - Fair Value (Details) - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities [Line Items]
Cash and due from banks	44,930,836	41,742,321
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	15,740,000	19,850,000
Federal funds sold	15,740,000	19,850,000
Investment securities:
Held to maturity	261,129,586	253,674,159
Held to maturity	264,414,722	255,691,285
Loans/leases receivable, net	1,841,827,043	1,767,672,541
Loans/leases receivable, net, fair value	(4,601,131)	1,764,178,772
Derivative instruments	450,651	856,024
Deposits:
Short-term borrowings	64,022,811	144,662,716
Short-term borrowings	64,022,811	144,662,716
FHLB advances	150,500,000	151,000,000
FHLB advances	152,206,000	153,143,000
Other borrowings	100,000,000	110,000,000
Other borrowings	106,466,000	116,061,000
Junior subordinated debentures	33,378,402	38,499,052
Junior subordinated debentures	24,520,003	27,642,093
Fair Value, Inputs, Level 2 [Member] | Nonmaturity Deposits [Member]
Deposits:
Deposits	1,586,207,114	1,516,599,081
Deposits, fair value	1,586,207,114	1,516,599,081
Fair Value, Inputs, Level 2 [Member] | Time Deposits [Member]
Deposits:
Deposits	403,365,975	364,067,103
Deposits, fair value	404,278,000	364,192,000
Fair Value, Inputs, Level 2 [Member] | Interest Rate Cap [Member]
Investment securities:
Derivative instruments	450,651	856,024
Fair Value, Inputs, Level 2 [Member] | Interest-bearing Deposits [Member]
Note 6 - Fair Value (Details) - Carrying Values and Estimated Fair Values of Financial Assets and Liabilities [Line Items]
Interest-bearing deposits at financial institutions	41,489,171	36,313,965
Interest-bearing deposits at financial institutions	41,489,171	36,313,965
Fair Value, Inputs, Level 3 [Member]
Investment securities:
Loans/leases receivable, net	4,601,131	4,209,228
Loans/leases receivable, net, fair value	$ 4,969,221	$ 4,545,966

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Note 7 - Business Segment Information (Details) - Selected Financial Information on the Company’s Business Segments - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Segment Reporting Information [Line Items]
Total revenue	$ 30,324,532	$ 28,123,508
Net interest income	20,597,522	17,782,217
Net income attributable to QCR Holdings, Inc.	6,373,489	4,177,889
Total assets	2,640,673,254	2,491,659,006	$ 2,593,198,275
Provision for loan/lease losses	2,072,985	1,710,456
Goodwill	3,222,688	3,222,688	3,222,688
Core deposit intangible	1,421,531	1,621,043	$ 1,471,409
Operating Segments [Member] | Wealth Management Segment [Member]
Segment Reporting Information [Line Items]
Total revenue	2,234,292	2,343,438
Net income attributable to QCR Holdings, Inc.	447,770	459,330
Operating Segments [Member] | Other Segments [Member]
Segment Reporting Information [Line Items]
Total revenue	6,859,775	5,616,443
Net interest income	(300,887)	(485,200)
Net income attributable to QCR Holdings, Inc.	6,373,488	4,177,889
Total assets	288,814,613	221,549,665
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Total revenue	(6,919,935)	(5,705,028)
Net income attributable to QCR Holdings, Inc.	(6,831,981)	(5,608,906)
Total assets	(262,638,349)	(208,470,899)
Quad City Bank and Trust Company [Member] | Operating Segments [Member] | Commercial Banking Segment [Member]
Segment Reporting Information [Line Items]
Total revenue	13,516,932	12,801,418
Net interest income	10,961,447	9,275,038
Net income attributable to QCR Holdings, Inc.	2,831,696	2,562,613
Total assets	1,361,607,041	1,268,168,825
Provision for loan/lease losses	1,222,985	882,456
Goodwill	3,222,688	3,222,688
Cedar Rapids Bank and Trust [Member] | Operating Segments [Member] | Commercial Banking Segment [Member]
Segment Reporting Information [Line Items]
Total revenue	10,839,221	9,525,647
Net interest income	7,024,988	6,358,297
Net income attributable to QCR Holdings, Inc.	2,934,731	2,068,306
Total assets	885,858,279	855,417,474
Provision for loan/lease losses	550,000	600,000
Core deposit intangible	1,421,531	1,621,043
Rockford Bank and Trust [Member] | Operating Segments [Member] | Commercial Banking Segment [Member]
Segment Reporting Information [Line Items]
Total revenue	3,794,247	3,541,590
Net interest income	2,911,974	2,634,082
Net income attributable to QCR Holdings, Inc.	617,785	518,657
Total assets	367,031,670	354,993,941
Provision for loan/lease losses	$ 300,000	$ 228,000

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Note 8 - Regulatory Capital Requirements (Details)	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block [Abstract]
Annual Phase-in Percentage of Capital Conservation Buffer	0.625%
Capital Required For Capital Adequacy To Risk Weighted Assets With Capital Conservation Buffer Fully Phased In	10.50%
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets With Capital Conservation Buffer Fully Phased in	8.50%
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets With Capital Conservation Buffer Fully Phased in	7.00%

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Note 8 - Regulatory Capital Requirements (Details) - Capital Requirements - USD ($) $ in Thousands		Mar. 31, 2016		Dec. 31, 2015
Parent Company [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total risk-based capital, actual, amount				$ 280,273
Total risk-based capital, actual, ratio		12.68%		13.11%
Total risk-based capital for capital adequacy purposes, amount		$ 192,416	[1]	$ 170,969
Total risk-based capital for capital adequacy purposes, ratio	[1]	8.625%		8.00%
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount		$ 223,091		$ 213,711
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio		10.00%		10.00%
Tier 1 risk-based capital, actual, amount				$ 253,891
Tier 1 risk-based capital, actual, ratio		11.45%		11.88%
Tier 1 risk-based capital for capital adequacy purposes, amount		$ 147,797	[1]	$ 128,227
Tier 1 risk-based capital for capital adequacy purposes, ratio	[1]	6.625%		6.00%
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount		$ 178,472		$ 170,969
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio		8.00%		8.00%
Tier 1 leverage, actual, amount				$ 253,891
Tier 1 leverage, actual, ratio		9.85%		9.75%
Tier 1 leverage for capital adequacy purposes, amount		$ 103,728	[1]	$ 104,163
Tier 1 leverage for capital adequacy purposes, ratio	[1]	4.00%		4.00%
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount		$ 129,660		$ 130,203
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio		5.00%		5.00%
Common equity Tier 1, actual, amount				$ 220,800
Common equity Tier 1, actual ratio		10.11%		10.33%
Common equity Tier 1 capital adequacy purposes, amount		$ 114,334	[1]	$ 96,170
Common equity Tier 1 capital adequacy purposes, ratio	[1]	5.125%		4.50%
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount		$ 145,009		$ 138,912
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio		6.50%		6.50%
Quad City Bank and Trust Company [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total risk-based capital, actual, amount				$ 135,477
Total risk-based capital, actual, ratio		12.01%		12.50%
Total risk-based capital for capital adequacy purposes, amount		$ 98,496	[1]	$ 86,726
Total risk-based capital for capital adequacy purposes, ratio	[1]	8.625%		8.00%
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount		$ 114,198		$ 108,407
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio		10.00%		10.00%
Tier 1 risk-based capital, actual, amount				$ 123,498
Tier 1 risk-based capital, actual, ratio		10.92%		11.39%
Tier 1 risk-based capital for capital adequacy purposes, amount		$ 75,656	[1]	$ 65,044
Tier 1 risk-based capital for capital adequacy purposes, ratio	[1]	6.625%		6.00%
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount		$ 91,358		$ 86,726
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio		8.00%		8.00%
Tier 1 leverage, actual, amount				$ 123,498
Tier 1 leverage, actual, ratio		9.12%		8.87%
Tier 1 leverage for capital adequacy purposes, amount		$ 54,680	[1]	$ 55,718
Tier 1 leverage for capital adequacy purposes, ratio	[1]	4.00%		4.00%
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount		$ 68,351		$ 69,648
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio		5.00%		5.00%
Common equity Tier 1, actual, amount				$ 123,498
Common equity Tier 1, actual ratio		10.92%		11.39%
Common equity Tier 1 capital adequacy purposes, amount		$ 58,526	[1]	$ 48,783
Common equity Tier 1 capital adequacy purposes, ratio	[1]	5.125%		4.50%
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount		$ 74,229		$ 70,465
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio		6.50%		6.50%
Cedar Rapids Bank and Trust [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total risk-based capital, actual, amount				$ 105,285
Total risk-based capital, actual, ratio		13.98%		14.39%
Total risk-based capital for capital adequacy purposes, amount		$ 65,729	[1]	$ 58,537
Total risk-based capital for capital adequacy purposes, ratio	[1]	8.625%		8.00%
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount		$ 76,208		$ 73,172
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio		10.00%		10.00%
Tier 1 risk-based capital, actual, amount				$ 96,118
Tier 1 risk-based capital, actual, ratio		12.73%		13.14%
Tier 1 risk-based capital for capital adequacy purposes, amount		$ 50,488	[1]	$ 43,903
Tier 1 risk-based capital for capital adequacy purposes, ratio	[1]	6.625%		6.00%
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount		$ 60,966		$ 58,537
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio		8.00%		8.00%
Tier 1 leverage, actual, amount				$ 96,118
Tier 1 leverage, actual, ratio		11.03%		10.96%
Tier 1 leverage for capital adequacy purposes, amount		$ 35,197	[1]	$ 35,079
Tier 1 leverage for capital adequacy purposes, ratio	[1]	4.00%		4.00%
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount		$ 43,996		$ 43,848
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio		5.00%		5.00%
Common equity Tier 1, actual, amount				$ 96,118
Common equity Tier 1, actual ratio		12.73%		13.14%
Common equity Tier 1 capital adequacy purposes, amount		$ 39,056	[1]	$ 32,927
Common equity Tier 1 capital adequacy purposes, ratio	[1]	5.125%		4.50%
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount		$ 49,535		$ 47,562
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio		6.50%		6.50%
Rockford Bank and Trust [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total risk-based capital, actual, amount				$ 38,544
Total risk-based capital, actual, ratio		12.03%		11.96%
Total risk-based capital for capital adequacy purposes, amount		$ 28,096	[1]	$ 25,772
Total risk-based capital for capital adequacy purposes, ratio	[1]	8.625%		8.00%
Total risk-based capital to be well capitalized under prompt corrective action provisions, amount		$ 32,575		$ 32,216
Total risk-based capital to be well capitalized under prompt corrective action provisions, ratio		10.00%		10.00%
Tier 1 risk-based capital, actual, amount				$ 34,514
Tier 1 risk-based capital, actual, ratio		10.78%		10.71%
Tier 1 risk-based capital for capital adequacy purposes, amount		$ 21,581	[1]	$ 19,329
Tier 1 risk-based capital for capital adequacy purposes, ratio	[1]	6.625%		6.00%
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, amount		$ 26,060		$ 25,772
Tier 1 risk-based capital to be well capitalized under prompt corrective action provisions, ratio		8.00%		8.00%
Tier 1 leverage, actual, amount				$ 34,514
Tier 1 leverage, actual, ratio		9.52%		9.59%
Tier 1 leverage for capital adequacy purposes, amount		$ 14,758	[1]	$ 14,401
Tier 1 leverage for capital adequacy purposes, ratio	[1]	4.00%		4.00%
Tier 1 leverage to be well capitalized under prompt corrective action provisions, amount		$ 18,447		$ 18,001
Tier 1 leverage to be well capitalized under prompt corrective action provisions, ratio		5.00%		5.00%
Common equity Tier 1, actual, amount				$ 34,514
Common equity Tier 1, actual ratio		10.78%		10.71%
Common equity Tier 1 capital adequacy purposes, amount		$ 16,695	[1]	$ 14,497
Common equity Tier 1 capital adequacy purposes, ratio	[1]	5.125%		4.50%
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, amount		$ 21,174		$ 20,940
Common equity Tier 1 to be well capitalized under prompt corrective action provisions, ratio		6.50%		6.50%

[1] The minimums under Basel III phase in higher by .625% (the capital conservation buffer) annually until 2019. The fully phased-in minimums are 10.5% (Total risk-based capital), 8.5% (Tier 1 risk-based capital), and 7.0% (Common equity Tier 1). At December 31, 2015, the New Basel III minimums mirrored the minimums required for capital adequacy purposes. The first phase-in of the Basel III capital conservation buffer occured in 2016.