QUAD CITY HOLDINGS, INC. AND SUBSIDIARIES
INDEX
Part I FINANCIAL INFORMATION
Item 1 Consolidated Condensed Financial Statements (Unaudited)
Consolidated Condensed Balance Sheets, September 30, 1996 & June 30,
1996
Consolidated Condensed Statements of Income, For the Three Months
Ended September 30, 1996 and 1995
Consolidated Condensed Statements of Cash Flows, For the Three Months
Ended September 30, 1996 and 1995
Notes to Consolidated Condensed Financial Statements
Item 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations
Part II OTHER INFORMATION
Item 1 Legal Proceedings
Item 2 Changes in Securities
Item 3 Defaults Upon Senior Securities
Item 4 Submission of Matters to a Vote of Security Holders
Item 5 Other Information
Item 6 Exhibits and Reports on Form 8-K
SIGNATURES
<PAGE>
QUAD CITY HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
<TABLE>
September 30, June 30,
1996 1996
------------- -------------
<S> <C> <C>
ASSETS
Cash and due from banks .................................................... $ 6,273,065 $ 6,615,407
Federal funds sold ......................................................... 6,615,000 2,728,000
Certificates of deposit at financial institutions .......................... 5,555,163 5,472,012
Securities held to maturity, at amortized cost
(fair value September 1996, $2,990,893; June 1996, $3,097,115) ..... 3,033,445 3,156,601
Securities available for sale, at fair value
(amortized cost September 1996, $31,852,043; June 1996, $31,518,121) 31,515,010 31,032,652
------------- -------------
Total securities ....................................................... 34,548,455 34,189,253
------------- -------------
Loans receivable ........................................................... 67,244,055 56,809,720
Less: Allowance for estimated losses on loans .............................. (1,008,879) (852,500)
------------- -------------
Net loans receivable ................................................... 66,235,176 55,957,220
------------- -------------
Premises and equipment, net ................................................ 5,052,607 4,531,038
Accrued interest receivable ................................................ 952,669 1,121,268
Other assets ............................................................... 867,367 860,779
------------- -------------
Total assets ....................................................... $ 126,099,502 $ 111,474,977
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing ..................................................... $ 18,026,054 $ 15,730,265
Interest-bearing ........................................................ 85,433,318 77,187,853
------------- -------------
Total deposits ........................................................ 103,459,372 92,918,118
------------- -------------
Federal funds purchased .................................................... 0 1,190,000
Federal Home Loan Bank advances ............................................ 5,398,486 3,411,470
Other borrowings ........................................................... 1,500,000 1,000,000
Other liabilities .......................................................... 3,665,418 1,286,783
------------- ------------
Total liabilities .................................................. 114,023,276 99,806,371
------------- ------------
STOCKHOLDERS' EQUITY
Preferred stock, $1 par value; shares authorized 250,000; shares issued none -- --
Common stock, $1 par value; shares authorized 2,500,000; shares issued
and outstanding 1,437,824 ................................................ 1,437,824 1,437,824
Additional paid-in capital ................................................. 11,764,416 11,764,416
Retained earnings (deficit) ................................................ (788,981) (1,048,165)
------------- ------------
12,413,259 12,154,075
Unrealized (losses) on securities available for sale, net .................. (337,033) (485,469)
------------- ------------
Total stockholders' equity ......................................... 12,076,226 11,668,606
------------- -------------
Total liabilities and stockholders' equity ......................... $ 126,099,502 $ 111,474,977
============= =============
</TABLE>
See Notes to Consolidated Condensed Financial Statements
<PAGE>
QUAD CITY HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)
<TABLE>
Three Months Ended September 30,
--------------------------------
1996 1995
---------- ----------
<S> <C> <C>
Interest income:
Interest and fees on loans ............................. $1,346,115 $ 796,907
Interest and dividends on securities ................... 520,981 415,658
Interest on federal funds sold ......................... 49,100 147,693
Other interest ......................................... 98,041 82,160
---------- ----------
Total interest income ............................. 2,014,237 1,442,418
---------- ----------
Interest expense:
Interest on deposits .................................. 919,141 763,409
Interest on other borrowings .......................... 89,128 46,445
---------- ----------
Total interest expense ............................ 1,008,269 809,854
---------- ----------
Net interest income ............................... 1,005,968 632,564
Provision for loan losses .................................. 157,400 100,800
---------- ----------
Net interest income after provision for loan losses 848,568 531,764
---------- ----------
Other income:
Merchant credit card, net of processing fees ........... 327,193 229,692
Trust department ....................................... 116,503 73,639
Deposit service fees ................................... 42,269 27,228
Other .................................................. 33,243 38,876
---------- ----------
Total other income ................................ 519,208 369,435
---------- ----------
Other expenses:
Salaries and benefits .................................. 563,171 451,359
Professional and data processing fees .................. 108,265 66,064
Advertising and marketing .............................. 30,890 35,074
Occupancy and equipment expense ........................ 138,886 71,880
Stationery and supplies ................................ 43,912 27,569
Provision for merchant credit card losses .............. 43,954 17,309
Insurance .............................................. 18,949 26,409
Postage and telephone .................................. 45,667 29,508
Other .................................................. 114,898 82,185
---------- ----------
Total other expenses .............................. 1,108,592 807,357
---------- ----------
Net income ........................................ $ 259,184 $ 93,842
========== ==========
Income per common share: .................................... $ 0.18 $ 0.07
========== ==========
</TABLE>
See Notes to Consolidated Condensed Financial Statements
<PAGE>
QUAD CITY HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
Three Months Ended September 30,
--------------------------------
1996 1995
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ............................................................. $ 259,184 $ 93,842
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation ......................................................... 68,035 31,661
Provision for loan losses ............................................ 157,400 100,800
Amortization of premiums (accretion of discounts) on securities, net . (5,553) 4,381
(Increase) decrease in accrued interest receivable ................... 168,599 (86,357)
(Increase) decrease in other assets .................................. (6,588) 18,164
Increase in other liabilities ........................................ 2,378,635 225,544
------------ ------------
Net cash provided by operating activities ......................... $ 3,019,712 $ 388,035
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Net (increase) decrease in federal funds sold .......................... (3,887,000) 5,570,000
Net (increase) in certificates of deposits at financial institutions ... (83,151) (1,107,895)
Net loans originated ................................................... (10,435,356) (6,023,350)
Purchase of securities held to maturity ................................ 0 (2,478,009)
Purchase of securities available for sale .............................. (427,593) (2,869,250)
Proceeds from maturity of securities ................................... 0 1,000,000
Proceeds from calls/paydowns on securities ............................. 222,380 1,406,762
Purchase of premises and equipment ..................................... (589,604) (49,676)
------------ ------------
Net cash (used in) investing activities ........................... $(15,200,324) $ (4,551,418)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in time certificates of deposit accounts .................. 1,981,074 1,763,713
Net increase in non-time deposit accounts .............................. 8,560,180 8,205,068
Net (decrease) in federal funds purchased .............................. (1,190,000) (3,911,072)
Net increase in Federal Home Loan Bank advances ........................ 1,987,016 0
Net increase in other borrowings ....................................... 500,000 0
------------ ------------
Net cash provided by financing activities ......................... $ 11,838,270 $ 6,057,709
------------ ------------
Net increase (decrease) in cash and due from banks ................ (342,342) 1,894,326
Cash and due from banks, beginning ................................ 6,615,407 3,830,270
------------ ------------
Cash and due from banks, ending ................................... $ 6,273,065 $ 5,724,596
============ ============
Supplemental disclosure of cash flow information, cash payments for:
Interest ............................................................... $ 1,043,818 $ 723,699
============ ============
Supplemental schedule of noncash investing activities:
Change in unrealized gains (losses)on securities available for sale, net $ 148,436 $ 2,374
============ ============
</TABLE>
See Notes to Consolidated Condensed Financial Statements
<PAGE>
Part I
Item 1
QUAD CITY HOLDINGS, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 1996
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited consolidated condensed financial statements have been
prepared in accordance with generally accepted accounting principles for interim
financial information and with the instructions to Form 10-QSB. Accordingly,
they do not include information or footnotes necessary for a fair presentation
of financial position, results of operations and changes in financial condition
in conformity with generally accepted accounting principles. However, all
adjustments that are, in the opinion of management, necessary for a fair
presentation have been included. Results for the three months ended September
30, 1996 are not necessarily indicative of the results that may be expected for
the fiscal year ending June 30, 1997.
NOTE 2 - PRINCIPLES OF CONSOLIDATION
The accompanying consolidated condensed financial statements include the
accounts of Quad City Holdings, Inc. (the "Company") and its wholly owned
subsidiaries, Quad City Bank and Trust Company (the "Bank") and Quad City
Bancard, Inc. ("Bancard"). All significant intercompany accounts and
transactions have been eliminated in consolidation.
NOTE 3 - INITIAL PUBLIC OFFERING
The Company was incorporated in February of 1993, and its primary operating
subsidiary (the "Bank") commenced operations during the first calendar quarter
of 1994. On October 6, 1993, the Company went effective with its initial public
offering. 1.2 million shares of common stock were issued in the offering. In
November of 1993, the underwriter exercised its over-allotment option and
acquired 162,824 additional shares of common stock. 75,000 shares were issued in
a private placement in April of 1993 resulting in the total issued shares of
1,437,824.
<PAGE>
Part I
Item 2
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
GENERAL
Quad City Holdings. Inc. (the "Company") was formed in February of 1993
under the laws of the state of Delaware for the purpose of becoming the bank
holding company of Quad City Bank and Trust Company (the "Bank").
The Bank was capitalized on October 13, 1993 and commenced operations on
January 7, 1994. The Bank was organized as an Iowa-chartered commercial bank
that is a member of the Federal Reserve System with depository accounts insured
by the Federal Deposit Insurance Corporation. The Bank provides full-service
commercial and consumer banking services in Bettendorf and Davenport, Iowa and
adjacent communities.
Quad City Bancard, Inc. ("Bancard") was capitalized on April 3, 1995, as a
Delaware corporation which provides merchant credit card processing services.
This operation had previously been a division of the Bank since July 1994.
Bancard has contracted with an independent sales organization which markets
credit card services to merchants throughout the country. Currently,
approximately 9,000 merchants process transactions with Bancard.
The Company has a fiscal year end of June 30.
FINANCIAL CONDITION
Total assets of the Company increased by $14,624,525 or 13.12% to
$126,099,502 at September 30, 1996 from $111,474,977 at June 30, 1996. The
growth primarily resulted from an increase in deposits received from customers.
Cash and due from banks decreased by $342,342 or 5.17% to $6,273,065 at
September 30, 1996 from $6,615,407 at June 30, 1996 and represented both cash
maintained at the Bank, as well as funds that the Bank and the Company had
deposited in other banks in the form of demand deposits.
Federal funds sold are inter-bank funds with daily liquidity. At September
30, 1996, the Bank had invested $6,615,000 in such funds. This amount increased
by $3,887,000, or 142.49%, from $2,728,000 at June 30, 1996.
Certificates of deposit at financial institutions increased by $83,151 or
1.52% to $5,555,163 at September 30, 1996 from $5,472,012 at June 30, 1996. The
increase was due to new deposits in other banks in the form of certificates of
deposit.
Securities increased by $359,202 or 1.05% to $34,548,455 at September 30,
1996 from $34,189,253 at June 30, 1996. The increase was the result of a number
of transactions in the security portfolio. Two securities, classified as
available for sale, were purchased during the quarter for $427,593, the net of
the amortization of premiums and accretion of discounts was $5,553, and the
increase in unrealized gain on securities available for sale was $148,436. The
increase was offset by paydowns received on mortgage backed securities of
$222,380.
Loans receivable increased by $10,434,335 or 18.37% to $67,244,055 at
September 30, 1996 from $56,809,720 at June 30, 1996. The increase was the
result of the origination of $18,154,890 of commercial business, consumer and
real estate loans, less loan repayments of $7,720,555.
The allowance for estimated losses on loans at September 30, 1996 was
$1,008,879, representing approximately 1.5% of gross loans outstanding.
Similarly, the allowance for estimated losses on loans at June 30, 1996 was
approximately 1.5% of gross loans outstanding, or $852,500. Although management
believes that the allowance for estimated losses on loans at September 30, 1996
was at a level that is adequate to absorb losses on existing loans, there can be
no assurance that such losses will not exceed the estimated amounts or that the
Company will not be required to make additional contributions to its provision
for loan losses in the future.
Premises and equipment increased by $521,569 or 11.51% to $5,052,607 at
September 30, 1996 from $4,531,038 at June 30, 1996. The increase resulted from
the purchase of additional furniture, fixtures and equipment for the Bank and
Bancard, and the site construction costs for the new Davenport banking location,
offset by depreciation expense.
<PAGE>
Accrued interest receivable on loans, securities and interest-bearing cash
accounts decreased by $168,599 or 15.04% to $952,669 at September 30, 1996 from
$1,121,268 at June 30, 1996.
Other assets increased slightly by $6,588 or 0.77% to $867,367 at
September 30, 1996 from $860,779 at June 30, 1996. Other assets consisted mainly
of miscellaneous receivables, prepaid expenses and accrued trust department
income.
Deposits increased by $10,541,254 or 11.34% to $103,459,372 at September
30, 1996 from $92,918,118 at June 30, 1996. The increase resulted from an
$8,560,180 increase in non-interest bearing, NOW, money market and other savings
accounts and a $1,981,074 increase in certificates of deposit.
The Company had no federal funds purchased at September 30, 1996, as
compared to $1,190,000 at June 30, 1996. The decrease was attributable to the
reduction in funds received from correspondent banking customers to be
reinvested in overnight deposits "as principal". In August 1995, the
correspondent banking department implemented an "agent" federal funds program,
whereby a portion of the funds received from downstream correspondent banking
customers merely pass through the Company's financial statements to upstream
correspondent banks. The implementation of the "agent" program resulted in a
decrease to assets (federal funds sold) and liabilities (federal funds
purchased).
Federal Home Loan Bank ("FHLB") advances increased by $1,987,016 to
$5,398,486 at September 30, 1996 from $3,411,470 at June 30, 1996. The Bank is a
member of the FHLB of Des Moines. As a result of its membership in the FHLB, the
Bank has the ability to borrow funds for short- or long-term purposes under a
variety of programs.
Other borrowings increased by $500,000 to $1,500,000 at September 30, 1996
from $1,000,000 at June 30, 1996. Other borrowings consisted of the amount
outstanding on a $1,500,000 revolving credit note, which is secured by all the
outstanding stock of the Bank. The borrowed funds were utilized to provide
additional capital to the Bank to maintain its required 9% leverage ratio.
Other liabilities increased by $2,378,635 or 184.85% to $3,665,418 at
September 30, 1996 from $1,286,783 at June 30, 1996. Other liabilities was
comprised of unpaid amounts for various products and services, and accrued but
unpaid interest on deposits. The increase was primarily due to the accounts
payable on Bancard's books at the end of the quarter.
Common stock of $1,437,824 at both September 30, 1996 and June 30, 1996
represented 1,437,824 shares at $1.00 par value of the Company's common stock.
At both September 30, 1996 and June 30, 1996, additional paid-in-capital
of $11,764,416 consisted of the proceeds above par from the public stock
offering less associated costs for professional fees and underwriting discounts
and commissions, as well as the proceeds from the private placement less
associated costs.
The accumulated deficit at June 30, 1996 of $1,048,165 was comprised of
pre-opening expenses, start-up expenses for the Bank, consisting primarily of
salaries, marketing and advertising fees, supplies and forms and the net loss
incurred. The accumulated deficit decreased by $259,184 to $788,981 at September
30, 1996 to reflect the net income for the three months.
Unrealized losses on securities available for sale decreased by $148,436
to $337,033 at September 30, 1996 from $485,469 at June 30, 1996. The decrease
was attributable to the increase in fair value of the securities, identified as
available for sale, for the quarter.
In anticipation of continued asset growth, the Company has decided to
conduct a preferred stock offering. It is management's intention to raise at
least $7.5 million. Subscriptions were signed during October 1996 for $5.0
million.
<PAGE>
RESULTS OF OPERATIONS
Net income for the three month period ended September 30, 1996 more than
doubled to $259,184 as compared to a net income of $93,842 for the same period
in 1995.
Interest income increased by $571,819 from $1,442,418 for the three month
period ended September 30, 1995 to $2,014,237 for the three month period ended
September 30, 1996. The 39.64% rise in interest income was primarily
attributable to greater average outstanding balances in interest earning assets.
Interest expense increased by $198,415 from $809,854 for the three month
period ended September 30, 1995 to $1,008,269 for the three month period ended
September 30, 1996. The 24.50% increase in interest expense was again primarily
attributable to greater average outstanding balances in interest bearing
liabilities.
The Company had an allowance for estimated losses on loans of
approximately 1.5% of total loans at September 30, 1996 and 1995. The provision
for loan losses increased by $56,600 from $100,800 for the three month period
ended September 30, 1995 to $157,400 for the three month period ended September
30, 1996. The 56.15% increase in the provision was made as a result of the
increase in the total loan portfolio during this quarter. In the future, the
Company plans to adjust the provision based on a risk weighting policy.
Other income increased by $149,773 from $369,435 for the three month period
ended September 30, 1995 to $519,208 for the three month period ended September
30, 1996. Other income at September 30, 1996 consisted of income from the
merchant credit card operation, the trust department, depository service fees,
and other miscellaneous fees. The increase was primarily due to the addition of
new customers and increased volume of merchant credit card processing at Bancard
and the addition of new clients in the trust department at the Bank.
The main components of other expenses were primarily salaries and
benefits, occupancy and equipment expenses, professional and data processing
fees, insurance expenses, and advertising and marketing for both periods. Other
expenses for the three months ended September 30, 1996 were $1,108,592 as
compared to $807,357 for the same period in 1995. The $301,235, or 40.54%
increase was primarily due to higher overhead expenses on the increased volume
of business acquired in the last fiscal year.
OTHER DEVELOPMENTS
The Bank opened the permanent Davenport facility on July 1, 1996. The
newly constructed building is located on North Brady Street. The Bank owns one
half of the two story commercial office structure that is separated by an
atrium. The Bank occupies all 6,000 square feet of its first floor and utilizes
the basement for storage and item processing. Three thousand square feet of its
second floor has been leased to a professional services firm. The remaining
3,000 square feet is available for lease.
In October of 1996, the management of the Company announced its intentions
to lease space in the historic Velie Mansion in Moline. Bancard plans to
relocate its operations to third floor of the 37,000 square foot building in mid
1997. Subject to regulatory approval, the Bank will create a full-service
banking operation on the east half of the first floor of the building in late
1997, or early 1998.
NEW ACCOUNTING PRONOUNCEMENTS
The Financial Accounting Standards Board has issued Statement No. 125
"Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities" which becomes effective for transfers and servicing of financial
assets and extinguishments of liabilities occurring after December 31, 1996.
This Statement provides accounting and reporting standards for transfers and
servicing of financial assets and extinguishments of liabilities based on
consistent application of a financial-components approach that focuses on
control. Under that approach, after a transfer of financial assets, an entity
recognizes the financial and servicing assets it controls and the liabilities it
has incurred, derecognizes financial assets when control has been surrendered,
and derecognizes liabilities when extinguished. The Statement provides
consistent standards for distinguishing transfers of financial assets that are
sales from transfers that are secured borrowings. Management believes that
adoption of this Statement will not have a material effect on the Company's
financial statements.
<PAGE>
RECENT REGULATORY DEVELOPMENTS
On September 30, 1996, President Clinton signed into law the "Economic
Growth and Regulatory Paperwork Reduction Act of 1996" (the "Regulatory
Reduction Act"). Subtitle G of the Regulatory Reduction Act consists of the
"Deposit Insurance Funds Act of 1996" (the "DIFA"). The DIFA provides for a
one-time special assessment on each depository institution holding deposits
subject to assessment by the FDIC for the Savings Association Insurance Fund
(the "SAIF") in an amount which, in the aggregate, will increase the designated
reserve ratio of the SAIF (i.e., the ratio of the insurance reserves of the SAIF
to total SAIF-insured deposits) to 1.25% on October 1, 1996. Subject to certain
exceptions, the special assessment is payable in full on November 27, 1996. The
Bank holds no SAIF-assessable deposits and, therefore, is not subject to the
special assessment.
Prior to the enactment of the DIFA, a substantial amount of the SAIF
assessment revenue was used to pay the interest due on bonds issued by the FICO,
the entity created in 1987 to finance the recapitalization of the Federal
Savings and Loan Insurance Corporation, the SAIF's predecessor insurance fund.
Pursuant to the DIFA, the interest due on outstanding FICO bonds will be covered
by assessments against both SAIF and BIF member institutions beginning January
1, 1997. Between January 1, 1997 and December 31, 1999, FICO assessments against
BIF-member institutions, such as the Bank, cannot exceed 20% of the FICO
assessments charged SAIF- member institutions. From January 1, 2000 until the
FICO bonds mature in 2019, FICO assessments will be shared by all FDIC-insured
institutions on a pro rata basis. The FDIC estimates that the FICO assessments
for the period January 1, 1997 through December 31, 1999 will be approximately
0.013% of deposits for BIF members versus approximately 0.064% of deposits for
SAIF members, and will be less than 0.025% of deposits thereafter.
The DIFA also provides for a merger of the BIF and SAIF on January 1,
1999, provided there are no state or federally chartered, FDIC-insured savings
associations existing on that date. To facilitate the merger of the BIF and the
SAIF, the DIFA directs the Treasury Department to conduct a study on the
development of a common charter and to submit a report, along with appropriate
legislative recommendations, to the Congress by March 31, 1997.
In addition to the DIFA, the Regulatory Reduction Act includes a number of
statutory changes designed to eliminate duplicative, redundant or unnecessary
regulatory requirements. Among other things, the Regulatory Reduction Act
establishes streamlined notice procedures for the commencement of new nonbanking
activities by bank holding companies, establishes time frames within which the
FDIC must act on applications by state banks to engage in activities which,
although permitted for the state bank under applicable state law, are not
permissible activities for national banks, and excludes ATM closures and certain
branch office relocations from the prior notice requirements applicable to
branch closings. The Regulatory Reduction Act also clarifies the liability of a
financial institution, when acting as a lender or in a fiduciary capacity, under
the federal environmental clean-up laws. Although the full impact of the
Regulatory Reduction Act on the operations of the Company and the Bank cannot be
determined at this time, management believes that the legislation will reduce
compliance costs to some extent and allow the Company and the Bank somewhat
greater operating flexibility.
<PAGE>
Part II
QUAD CITY HOLDINGS, INC.
PART II - OTHER INFORMATION
Item 1 Legal Proceedings - None
Item 2 Changes in Securities - None
Item 3 Defaults Upon Senior Securities - None
Item 4 Submission of Matters to a Vote of Security Holders - None
Item 5 Other Information - None
Item 6 Exhibits and Reports on Form 8-K - None
<PAGE>
Part II
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
QUAD CITY HOLDINGS, INC.
(Registrant)
By: /s/ Douglas M. Hultquist
-------------------------------------
Douglas M. Hultquist, President
Date November 8, 1996 /s/ Michael A. Bauer
------------------ -------------------------------------
Michael A. Bauer, Chairman
Date November 8, 1996 /s/ Douglas M. Hultquist
------------------ -------------------------
Douglas M. Hultquist, President
Principal Executive, Financial &
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS FINANCIAL SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
THE SEPTEMBER 30, 1996 FORM 10-Q FOR QUAD CITIES HOLDINGS, INC., AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> SEP-30-1996
<CASH> 6,273
<INT-BEARING-DEPOSITS> 5,555
<FED-FUNDS-SOLD> 6,615
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 31,515
<INVESTMENTS-CARRYING> 3,033
<INVESTMENTS-MARKET> 2,991
<LOANS> 67,244
<ALLOWANCE> 1,009
<TOTAL-ASSETS> 126,100
<DEPOSITS> 103,459
<SHORT-TERM> 6,898
<LIABILITIES-OTHER> 3,665
<LONG-TERM> 0
0
0
<COMMON> 1,438
<OTHER-SE> 10,638
<TOTAL-LIABILITIES-AND-EQUITY> 126,100
<INTEREST-LOAN> 1,346
<INTEREST-INVEST> 521
<INTEREST-OTHER> 147
<INTEREST-TOTAL> 2,014
<INTEREST-DEPOSIT> 919
<INTEREST-EXPENSE> 1,008
<INTEREST-INCOME-NET> 1,006
<LOAN-LOSSES> 157
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,109
<INCOME-PRETAX> 259
<INCOME-PRE-EXTRAORDINARY> 259
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 259
<EPS-PRIMARY> .18
<EPS-DILUTED> .18
<YIELD-ACTUAL> 0
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<ALLOWANCE-CLOSE> 1,009
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</TABLE>
