QCR Holdings, Inc. Secures $70 Million in Subordinated Notes

QCR Holdings, Inc. Completes Successful Financing

QCR Holdings, Inc. (NASDAQ: QCRH) has recently announced a significant milestone in its financial journey by completing private placements totaling $70 million in subordinated notes. This strategic move is aimed at enhancing the Company’s capital base and fueling future growth initiatives.

Details of the Private Placements

The private placements have been organized in two distinct tranches. The first tranche consists of $50 million, issued as 6.875% Fixed-to-Floating Rate Subordinated Notes with a maturity date in September 2035. The second tranche adds a further $20 million, which involves 7.225% Fixed-to-Floating Rate Subordinated Notes set to mature in September 2037. These notes reflect a tactical approach in managing the Company’s capital strategy.

Company Leadership Insights

Todd A. Gipple, the President and CEO of QCR Holdings, remarked on the significance of these issuances, aligning them with previously announced plans for redeeming $70 million in callable subordinated notes. Gipple emphasized that maintaining this component of Tier 2 capital is a prudent decision intended to bolster the Company’s financial foundation and support ongoing growth strategies.

Fostering Community Partnerships

Gipple also acknowledged the Company’s strong relationship-driven banking model, which has facilitated successful placements of these notes with local partners who share a commitment to community engagement. The issuance of the 2035 Notes at a competitive rate showcases the strength of the transaction and the trust placed in QCR Holdings.

Future Financial Strategy

The terms of the newly issued 2035 Notes indicate a fixed interest rate of 6.875% for the initial five years, transitioning to a floating rate thereafter, pegged to a three-month term SOFR plus a margin. The notes are redeemable in whole or in part, starting from September 2030, allowing for future financial flexibility.

2037 Notes Structure

Furthermore, details regarding the 2037 Notes reveal a fixed interest rate of 7.225% for the first seven years, adjusting subsequently to a floating rate as well. Similar redemption provisions apply, highlighting QCR Holdings' proactive approach to its capital management.

Legal Counsel and Company Overview

Barack Ferrazzano Kirschbaum & Nagelberg LLP has provided legal counsel to QCR Holdings throughout this transactional process, underscoring the diligence involved in these placements.

Headquartered in Moline, Illinois, QCR Holdings, Inc. operates as a multi-bank holding company with focus on building relationships within its communities. Through its subsidiary banks, it provides a diverse range of commercial and consumer banking services. As of the end of June 2025, QCR Holdings reported impressive financial metrics, including total assets of $9.2 billion, underscoring its stability in the banking sector.

Company Contacts

For further inquiries, QCR Holdings can be reached through:

Nick W. Anderson
Chief Financial Officer
(309) 743-7707
nanderson@qcrh.com

Frequently Asked Questions

What are the key features of QCR Holdings' notes?

The notes consist of two tranches totaling $70 million, offering fixed and floating interest rates with redemption options starting from specific dates depending on the tranche.

What is the purpose of the funds raised through the placement?

The funds will be utilized for general corporate purposes, which includes the redemption of previously issued subordinated notes.

Who advised QCR Holdings on this financing?

Barack Ferrazzano Kirschbaum & Nagelberg LLP provided legal counsel for the private placements.

Can QCR Holdings utilize these notes for future growth strategies?

Yes, the successful placement is intended to strengthen the Company’s capital base and support its long-term growth strategy.

When do these notes mature?

The 2035 Notes mature in September 2035, while the 2037 Notes mature in September 2037.

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