Note

20.

Parent Company Only Financial Statements

The following is condensed financial information of QCR Holdings, Inc. (parent company only):

Condensed Balance Sheets

December

31,

2016

and

2015

	2016			2015
Assets

Cash and due from banks	$	6,929,755		$	3,650,133
Interest-bearing deposits at financial institutions		651			701
Securities available for sale, at fair value		1,545,565			1,398,255
Investment in bank subsidiaries		345,866,288			256,709,890
Investment in nonbank subsidiaries		1,154,642			1,318,227
Premises and equipment, net		5,104,677			4,502,435
Other assets		15,245,521			12,797,292
Total assets	$	375,847,099		$	280,376,933

Liabilities and Stockholders' Equity
Liabilities:
Other borrowings	$	35,000,000		$	-
Junior subordinated debentures		33,480,202			38,499,052
Other liabilities		21,326,098			15,992,131
Total liabilities		89,806,300			54,491,183

Stockholders' Equity:
Common stock		13,106,845			11,761,083
Additional paid-in capital		156,776,642			123,282,851
Retained earnings		118,616,901			92,965,645
Accumulated other comprehensive loss		(2,459,589	)		(2,123,829	)
Total stockholders' equity		286,040,799			225,885,750
Total liabilities and stockholders' equity	$	375,847,099		$	280,376,933

Condensed Statements of Income

Years Ended

December

31,

2016,

2015,

and

2014

	2016			2015			2014

Total interest income	$	74,489		$	69,774		$	40,815
Equity in net income of bank subsidiaries		33,467,712			22,059,086			20,333,194
Equity in net income of nonbank subsidiaries		32,674			32,823			32,675
Securities gains		37,596			262,800			-
Other		(2,933	)		(4,436	)		7,486
Total income		33,609,538			22,420,047			20,414,170

Interest expense		1,735,769			1,679,909			1,986,752
Salaries and employee benefits		4,607,887			4,847,507			4,671,719
Professional fees		949,442			1,121,094			1,100,714
Acquisition costs		1,713,602			-			-
Gains on debt extinguishment		(1,200,000	)		(300,000	)		-
Other		988,057			949,041			635,081
Total expenses		8,794,757			8,297,551			8,394,266

Income before income tax benefit		24,814,781			14,122,496			12,019,904

Income tax benefit		2,872,006			2,805,385			2,932,633
Net income	$	27,686,787		$	16,927,881		$	14,952,537

Condensed Statements of Cash Flows

Years Ended

December

31,

2016,

2015,

and

2014

	2016			2015			2014
Cash Flows from Operating Activities:
Net income	$	27,686,787		$	16,927,881		$	14,952,537
Adjustments to reconcile net income to net cash provided by operating activities:
Earnings of bank subsidiaries		(33,467,712	)		(22,059,086	)		(20,333,194	)
Earnings of nonbank subsidiaries		(32,674	)		(32,823	)		(32,675	)
Distributions from bank subsidiaries		26,000,000			9,700,000			20,500,000
Distributions from nonbank subsidiaries		32,860			32,695			32,684
Accretion of acquisition fair value adjustments		136,150			137,317			133,905
Depreciation		222,256			174,757			100,158
Stock-based compensation expense		947,174			941,469			891,619
Securities gains, net		(37,596	)		(262,801	)		-
Gains on debt extinguishment		(1,200,000	)		(300,000	)		-
Decrease (increase) in other assets		(2,346,253	)		(5,929,110	)		1,912,597
(Decrease) increase in other liabilities		5,105,251			5,502,390			2,644,458
Net cash provided by operating activities		23,046,243			4,832,689			20,802,089

Cash Flows from Investing Activities:
Net increase in interest-bearing deposits at financial institutions		50			189,426			(2,726	)
Activity in securities portfolio:
Purchases		(3,873,060	)		(1,764,137	)		(40,523	)
Calls, maturities and redemptions		3,800,000			1,772,719			71,429
Sales		132,738			489,828			-
Capital infusion, bank subsidiaries		-			(45,600,000	)		-
Net cash paid for Community State Bank acquisition		(80,000,000	)		-			-
Purchase of premises and equipment		(824,498	)		(1,517,157	)		(16,618	)
Net cash (used in) provided by investing activities		(80,764,770	)		(46,429,321	)		11,562

Cash Flows from Financing Activities:
Activity in other borrowings:
Proceeds from other borrowings		35,000,000			-			10,000,000
Calls, maturities and scheduled principal payments		-			(2,350,000	)		(2,359,207	)
Prepayments		-			(19,395,116	)		-
Retirement of junior subordinated debentures		(3,955,000	)		(1,762,000	)		-
Payment of cash dividends on common and preferred stock		(1,981,541	)		(782,054	)		(1,964,608	)
Net proceeds from common stock offering, 3,680,000 shares issued		-			63,484,123			-
Net proceeds from common stock offering, 1,215,000 shares issued		29,828,916			-			-
Redemption of 29,867 shares of Series F Noncumulative Perpetual Preferred Stock, net		-			-			(29,823,922	)
Proceeds from issuance of common stock, net		2,105,774			1,552,673			620,641
Net cash provided by (used in) financing activities		60,998,149			40,747,626			(23,527,096	)
Net increase (decrease) in cash and due from banks		3,279,622			(849,006	)		(2,713,445	)

Cash and due from banks:
Beginning		3,650,133			4,499,139			7,212,584
Ending	$	6,929,755		$	3,650,133		$	4,499,139