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, 2017 and 2016

Assets	2017			2016

Cash and due from banks	$	4,325,582		$	6,929,755
Interest-bearing deposits at financial institutions		601			651
Securities available for sale, at fair value		1,690,726			1,545,565
Loans/leases receivable, held for investment		1,710,000			-
Investment in bank subsidiaries		410,105,525			345,866,288
Investment in nonbank subsidiaries		2,956,337			1,154,642
Premises and equipment, net		4,947,572			5,104,677
Other assets		11,630,304			15,245,521
Total assets	$	437,366,647		$	375,847,099

Liabilities and Stockholders' Equity
Liabilities:
Other borrowings	$	31,000,000		$	35,000,000
Junior subordinated debentures		37,486,487			33,480,202
Other liabilities		15,593,031			21,326,098
Total liabilities		84,079,518			89,806,300

Stockholders' Equity:
Common stock		13,918,168			13,106,845
Additional paid-in capital		189,077,550			156,776,642
Retained earnings		151,962,661			118,616,901
Accumulated other comprehensive loss		(1,671,250	)		(2,459,589	)
Total stockholders' equity		353,287,129			286,040,799
Total liabilities and stockholders' equity	$	437,366,647		$	375,847,099

Condensed Statements of Income
Years Ended December 31, 2017, 2016, and 2015

	2017		2016			2015

Total interest income	$	12,802	$	74,489		$	69,774
Equity in net income of bank subsidiaries		45,103,593		33,467,712			22,059,086
Equity in net income of nonbank subsidiaries		75,344		32,674			32,823
Securities gains		6,312		37,596			262,800
Other		2,700		(2,933	)		(4,436	)
Total income		45,200,751		33,609,538			22,420,047

Interest expense		2,658,414		1,735,769			1,679,909
Salaries and employee benefits		5,021,998		4,607,887			4,847,507
Professional fees		1,344,721		949,442			1,121,094
Acquisition costs		1,068,918		1,400,004			-
Post-acquisition compensation, transition and integration costs		3,151,384		313,598			-
Gains on debt extinguishment		-		(1,200,000	)		(300,000	)
Other		1,134,139		988,057			949,041
Total expenses		14,379,574		8,794,757			8,297,551

Income before income tax benefit		30,821,177		24,814,781			14,122,496

Income tax benefit		4,885,330		2,872,006			2,805,385
Net income	$	35,706,507	$	27,686,787		$	16,927,881

Condensed Statements of Cash Flows
Years Ended December 31, 2017, 2016, and 2015

	2017			2016			2015
Cash Flows from Operating Activities:
Net income	$	35,706,507		$	27,686,787		$	16,927,881
Adjustments to reconcile net income to net cash provided by operating activities:
Earnings of bank subsidiaries		(45,103,593	)		(33,467,712	)		(22,059,086	)
Earnings of nonbank subsidiaries		(75,344	)		(32,674	)		(32,823	)
Distributions from bank subsidiaries		21,000,000			26,000,000			9,700,000
Distributions from nonbank subsidiaries		38,734			32,860			32,695
Accretion of acquisition fair value adjustments		149,010			136,150			137,317
Depreciation		225,947			222,256			174,757
Stock-based compensation expense		1,187,036			947,174			941,469
Securities gains, net		(6,312	)		(37,596	)		(262,801	)
Gains on debt extinguishment		-			(1,200,000	)		(300,000	)
Decrease (increase) in other assets		(968,808	)		(2,346,253	)		(5,929,110	)
(Decrease) increase in other liabilities		(6,918,921	)		5,105,251			5,502,390
Net cash provided by operating activities		5,234,256			23,046,243			4,832,689

Cash Flows from Investing Activities:
Net increase in interest-bearing deposits at financial institutions		50			50			189,426
Activity in securities portfolio:
Purchases		-			(3,873,060	)		(1,764,137	)
Calls, maturities and redemptions		6,312			3,800,000			1,772,719
Sales		31,713			132,738			489,828
Capital infusion, bank subsidiaries		-			-			(45,600,000	)
Net cash paid for acquisitions		(3,368,909	)		(80,000,000	)		-
Purchase of premises and equipment		(68,842	)		(824,498	)		(1,517,157	)
Net cash (used in) provided by investing activities		(3,399,676	)		(80,764,770	)		(46,429,321	)

Cash Flows from Financing Activities:
Activity in other borrowings:
Proceeds from other borrowings		7,000,000			35,000,000			-
Calls, maturities and scheduled principal payments		(11,000,000	)		-			(2,350,000	)
Prepayments		-			-			(19,395,116	)
Retirement of junior subordinated debentures		-			(3,955,000	)		(1,762,000	)
Payment of cash dividends on common and preferred stock		(2,494,260	)		(1,981,541	)		(782,054	)
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			-
Proceeds from issuance of common stock, net		2,055,507			2,105,774			1,552,673
Net cash provided by (used in) financing activities		(4,438,753	)		60,998,149			40,747,626

Net increase (decrease) in cash and due from banks		(2,604,173	)		3,279,622			(849,006	)

Cash and due from banks:
Beginning		6,929,755			3,650,133			4,499,139
Ending	$	4,325,582		$	6,929,755		$	3,650,133