Note

Junior Subordinated Debentures

Junior subordinated debentures are summarized as of

December 31,

2017

and

2016

as follows:

	2017			2016

Note Payable to QCR Holdings Capital Trust II	$	10,310,000		$	10,310,000
Note Payable to QCR Holdings Capital Trust III		8,248,000			8,248,000
Note Payable to QCR Holdings Capital Trust V		10,310,000			10,310,000
Note Payable to Community National Trust II		3,093,000			3,093,000
Note Payable to Community National Trust III		3,609,000			3,609,000
Note Payable to Guaranty Bankshares Statutory Trust I*		4,640,000			-
Market Value Discount per ASC 805**		(2,723,513	)		(2,089,798	)
	$	37,486,487		$	33,480,202

As part of the acquisition of Guaranty Bank, the Company assumed

one

junior subordinated debenture with a fair value of

$3,857,275.

Discount on junior subordinated debt acquired in

2013

as part of the purchase of Community National and junior subordinated debt acquired in

2017

as part of the purchase of Guaranty Bank.

A schedule of the Company

’s non-consolidated subsidiaries formed for the issuance of trust preferred securities, including the amounts outstanding as of

December 31, 2017

and

2016,

is as follows:

Name	Date Issued	Amount Outstanding December 31, 2017		Amount Outstanding December 31, 2016		Interest Rate	Interest Rate as of December 31, 2017		Interest Rate as of December 31, 2016

QCR Holdings Statutory Trust II*	February 2004	$	10,310,000	$	10,310,000	2.85% over 3-month LIBOR		4.54%		3.85%
QCR Holdings Statutory Trust III	February 2004		8,248,000		8,248,000	2.85% over 3-month LIBOR		4.54%		3.85%
QCR Holdings Statutory Trust V	February 2006		10,310,000		10,310,000	1.55% over 3-month LIBOR		2.91%		2.43%
Community National Statutory Trust II	September 2004		3,093,000		3,093,000	2.17% over 3-month LIBOR		3.80%		3.17%
Community National Statutory Trust III	March 2007		3,609,000		3,609,000	1.75% over 3-month LIBOR		3.32%		2.71%
Guaranty Bankshares Statutory Trust I	May 2005		4,640,000		-	1.75% over 3-month LIBOR		3.34%		N/A
		$	40,210,000	$	35,570,000	Weighted Average Rate		3.82%		3.26%

*Original amount issued for QCR Holdings Statutory Trust II was

$12,372,000.

Securities issued by

all of the trusts listed above mature

years from the date of issuance, but all are currently callable at par at any time. Interest rate reset dates vary by Trust.

During

2015,

the Company

acquired and extinguished

$2.1

million of the QCR Holdings Statutory Trust II junior subordinated debentures and recorded a

$300,000

gain on the extinguishment, which is included within the overall net losses on debt extinguishments in the statements of income. The Company was able to acquire the related security at a discount through auction, which resulted in the gain. The interest rate on this debenture floated at LIBOR plus

2.85%

and had a rate of

3.18%

at the time of extinguishment.

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 within the overall net losses on debt extinguishments in the statements of income for

2016.

The interest rate on these debentures floated at

-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.