Note 12.Junior Subordinated Debentures

Junior subordinated debentures are summarized as of December 31, 2018 and 2017 as follows:


	2018		2017
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		4,640,000
Market Value Discount per ASC 805**		(2,539,957)		(2,723,513)
	$	37,670,043	$	37,486,487

* As part of the acquisition of Guaranty Bank, the Company assumed one junior subordinated debenture with a fair value of $3,857,275.

** Market value discount includes 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, 2018 and 2017, is as follows:


		Amount		Amount
		Outstanding		Outstanding
		December 31,		December 31,			Interest Rate as of		Interest Rate as of
Name	Date Issued	2018		2017		Interest Rate	December 31, 2018		December 31, 2017
QCR Holdings Statutory Trust II*	February 2004	$	10,310,000	$	10,310,000	2.85% over 3-month LIBOR	5.65	%	4.54	%
QCR Holdings Statutory Trust III	February 2004		8,248,000		8,248,000	2.85% over 3-month LIBOR	5.65	%	4.54	%
QCR Holdings Statutory Trust V	February 2006		10,310,000		10,310,000	1.55% over 3-month LIBOR	3.99	%	2.91	%
Community National Statutory Trust II	September 2004		3,093,000		3,093,000	2.17% over 3-month LIBOR	4.96	%	3.80	%
Community National Statutory Trust III	March 2007		3,609,000		3,609,000	1.75% over 3-month LIBOR	4.54	%	3.32	%
Guaranty Bankshares Statutory Trust I	May 2005		4,640,000		4,640,000	1.75% over 3-month LIBOR	4.54	%	3.34	%
		$	40,210,000	$	40,210,000	Weighted Average Rate	4.94	%	3.82	%

* Original amount issued for QCR Holdings Statutory Trust II was $12,372,000.

Securities issued by all of the trusts listed above mature 30 years from the date of issuance, but all are currently callable at par at any time. Interest rate reset dates vary by Trust.

In 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 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.

Note 12.Junior Subordinated Debentures (continued)

Interest rate swaps are also used for the purpose of hedging interest rate risk on junior subordinated debt. See Note 7 to the Consolidated Financial Statements for the details of these instruments.