QCR Holdings, Inc. Completes Private Placements of Subordinated Notes

Rhea-AI Summary

QCR Holdings (NASDAQ: QCRH) has successfully completed private placements of $70 million in subordinated notes through two tranches: $50 million in 6.875% Fixed-to-Floating Rate Notes due 2035 and $20 million in 7.225% Fixed-to-Floating Rate Notes due 2037.

The placement aligns with the company's previously announced redemption of $70 million in callable subordinated notes. The entire issuance was placed privately with a local company, achieving a blended interest rate below 7%. The notes will initially bear fixed interest rates before transitioning to floating rates based on three-month SOFR plus spreads of 350-375 basis points.

Positive

• None.

Negative

• Higher interest rates compared to previous issuance due to current rate environment
• Long-term debt commitment with 10-12 year maturities

MOLINE, Ill., Sept. 15, 2025 (GLOBE NEWSWIRE) -- QCR Holdings, Inc. (NASDAQ: QCRH) (the “Company”) today announced that it has completed private placements of $70 million in aggregate principal amount subordinated notes. The private placements were issued in two separate tranches consisting of $50 million in aggregate principal amount of 6.875% Fixed-to-Floating Rate Subordinated Notes due September 2035 (the “2035 Notes”) and $20 million in aggregate principal amount of 7.225% Fixed-to-Floating Subordinated Notes due September 2037 (the “2037 Notes”). The Company intends to use the net proceeds from the private placements for general corporate purposes, including the previously-announced redemption of the Company’s subordinated notes.

“These new issuances align with the Company’s July 25, 2025 announced redemption of $70 million in callable subordinated notes,” said Todd A. Gipple, President and Chief Executive Officer. “Maintaining this component of our Tier 2 capital is a prudent step that supports our long-term growth strategy and reinforces our financial strength.”

“Our relationship-based community banking model continues to generate exceptional opportunities,” Mr. Gipple added. “We successfully placed the entire new issuance privately with a local company that shares our commitment to relationships and serving the communities in which we live and work. The 2035 Notes of $50 million carry a very competitive rate of 6.875%, and when combined with the 2037 Notes, the blended rate is below 7%, highlighting the strength of this transaction.”

The 2035 Notes will bear interest at a fixed rate of 6.875% per year from, and including, September 15, 2025 to, but excluding, September 15, 2030, and from, and including, September 15, 2030 to, but excluding, September 15, 2035 (or earlier redemption date) the interest rate will reset quarterly to a floating rate, which is expected to be the then current three-month term SOFR plus 350 basis points. The 2035 Notes are redeemable by the Company, in whole or in part, on or after September 15, 2030, and at any time upon the occurrence of certain events.

The 2037 Notes will bear interest at a fixed rate of 7.225% per year from, and including, September 15, 2025 to, but excluding, September 15, 2032, and from, and including September 15, 2032 to, but excluding, September 15, 2037 (or earlier redemption date) the interest rate will reset quarterly to a floating rate, which is expected to be the then current three-month term SOFR plus 375 basis points. The 2037 Notes are redeemable by the Company, in whole or in part, on or after September 15, 2032, and at any time upon the occurrence of certain events.

Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel to the Company.

About Us

QCR Holdings, Inc., headquartered in Moline, Illinois, is a relationship-driven, multi-bank holding company serving the Quad Cities, Cedar Rapids, Cedar Valley, Des Moines/Ankeny and Springfield communities through its wholly owned subsidiary banks. The banks provide full-service commercial and consumer banking and trust and wealth management services. Quad City Bank & Trust Company, based in Bettendorf, Iowa, commenced operations in 1994, Cedar Rapids Bank & Trust Company, based in Cedar Rapids, Iowa, commenced operations in 2001, Community State Bank, based in Ankeny, Iowa, was acquired by the Company in 2016, and Guaranty Bank, based in Springfield, Missouri, was acquired by the Company in 2018. Additionally, the Company serves the Waterloo/Cedar Falls, Iowa community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company. The Company has 36 locations in Iowa, Missouri, and Illinois. As of June 30, 2025, the Company had $9.2 billion in assets, $6.8 billion in loans and $7.3 billion in deposits. For additional information, please visit the Company’s website at www.qcrh.com.

Contacts:

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

FAQ

What is the size and structure of QCRH's new subordinated notes offering?

QCRH issued $70 million in subordinated notes through two tranches: $50 million at 6.875% due 2035 and $20 million at 7.225% due 2037.

What are the interest rates for QCRH's 2035 subordinated notes?

The 2035 Notes bear a fixed rate of 6.875% until September 15, 2030, then switch to a floating rate of three-month SOFR plus 350 basis points.

When can QCRH redeem the 2035 and 2037 subordinated notes?

The 2035 Notes are redeemable on or after September 15, 2030, while the 2037 Notes are redeemable on or after September 15, 2032.

How will QCRH use the proceeds from the subordinated notes?

QCRH will use the proceeds for general corporate purposes, including the redemption of existing subordinated notes.

What is the blended interest rate for QCRH's new subordinated notes?

The blended interest rate for the combined notes issuance is below 7%, with the 2035 Notes at 6.875% and 2037 Notes at 7.225%.