Note 13 - Junior Subordinated Debentures

12 Months Ended

Dec. 31, 2020

Junior Subordinated Debentures

Junior Subordinated Debentures

Note 13. Junior Subordinated Debentures

Junior subordinated debentures are summarized as of December 31, 2020 and 2019 as follows:

	2020		2019
	(dollars in thousands)
Note Payable to QCR Holdings Capital Trust II	$	10,310	$	10,310
Note Payable to QCR Holdings Capital Trust III		8,248		8,248
Note Payable to QCR Holdings Capital Trust V		10,310		10,310
Note Payable to Community National Trust II*		3,093		3,093
Note Payable to Community National Trust III*		3,609		3,609
Note Payable to Guaranty Bankshares Statutory Trust I**		4,640		4,640
Market Value Discount per ASC 805***		(2,217)		(2,372)
	$	37,993	$	37,838

*      As part of the acquisition of Community National, the Company assumed two junior subordinated debentures with fair value of $4.2 million.

**   As part of the acquisition of Guaranty Bank, the Company assumed one junior subordinated debenture with a fair value of $3.9 million.

***  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, 2020 and 2019, is as follows:

		Amount		Amount
		Outstanding		Outstanding
		December 31,		December 31,			Interest Rate as of		Interest Rate as of
Name	Date Issued	2020		2019		Interest Rate	December 31, 2020		December 31, 2019
		(dollars in thousands)
QCR Holdings Statutory Trust II*	February 2004	$	10,310	$	10,310	2.85% over 3-month LIBOR	3.10	%	4.79	%
QCR Holdings Statutory Trust III	February 2004		8,248		8,248	2.85% over 3-month LIBOR	3.10	%	4.79	%
QCR Holdings Statutory Trust V	February 2006		10,310		10,310	1.55% over 3-month LIBOR	1.79	%	3.54	%
Community National Statutory Trust II	September 2004		3,093		3,093	2.17% over 3-month LIBOR	2.41	%	4.08	%
Community National Statutory Trust III	March 2007		3,609		3,609	1.75% over 3-month LIBOR	1.97	%	3.64	%
Guaranty Bankshares Statutory Trust I	May 2005		4,640		4,640	1.75% over 3-month LIBOR	1.97	%	3.64	%
		$	40,210	$	40,210	Weighted Average Rate	2.48	%	4.18	%

*    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.

The Company uses interest rate swaps for the purpose of hedging interest rate risk on the variable rate junior subordinated debt.  See Note 7 to the Consolidated Financial Statements for the details of these instruments.