U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(Mark One)
[ x ] Quarterly report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 For the quarterly period ended September 30, 1997
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from ____________________ to ___________________
Commission file number 0-22208
Quad City Holdings, Inc.
-----------------------------------------------------------------
(Exact name of small business issuer as specified in its charter)
Delaware 42-1397595
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
2118 Middle Road, Bettendorf, IA 52722
----------------------------------------
(Address of principal executive offices)
(319) 344-0600
---------------------------
(Issuer s telephone number)
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(Former name, former address and former fiscal year, if changed since
last report)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for past 90 days Yes [ x ] No [ ]
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDING DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of
securities under a plan confirmed by a court. Yes [ ] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer s classes of common
equity, as of the latest practicable date: 1,462,824 as of November 10, 1997
Transitional Small Business Disclosure Format (check one): Yes [ x ] No [ ]
<PAGE>
QUAD CITY HOLDINGS, INC. AND SUBSIDIARIES
INDEX
Page
Number
Part I FINANCIAL INFORMATION
Item 1 Consolidated Condensed Financial Statements (Unaudited)
Consolidated Condensed Balance Sheets,
September 30, 1997 & June 30, 1997
Consolidated Condensed Statements of Income,
For the Three Months Ended September 30, 1997 and 1996
Consolidated Condensed Statements of Cash Flows,
For the Three Months Ended September 30, 1997 and 1996
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>
Part I, Item 1
QUAD CITY HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
<TABLE>
September 30, June 30,
1997 1997
------------- -------------
<S> <C> <C>
ASSETS
Cash and due from banks ................................................... $ 8,785,432 $ 6,953,463
Federal funds sold ........................................................ 2,240,000 9,190,000
Certificates of deposit at financial institutions ......................... 5,567,233 5,359,124
Securities held to maturity, at amortized cost ............................ 2,752,715 2,914,129
Securities available for sale, at fair value .............................. 29,269,961 28,897,629
------------- -------------
Total securities ..................................................... 32,022,676 31,811,758
------------- -------------
Loans receivable .......................................................... 129,616,307 108,365,429
Less: Allowance for estimated losses on loans ............................. (1,947,633) (1,632,500)
------------- -------------
Net loans receivable ................................................. 127,668,674 106,732,929
------------- -------------
Premises and equipment, net ............................................... 5,394,305 5,248,689
Accrued interest receivable ............................................... 1,390,928 1,374,307
Other assets .............................................................. 2,160,578 1,708,481
------------- -------------
Total assets ...................................................... $ 185,229,826 $ 168,378,751
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits:
Noninterest-bearing .................................................... $ 24,926,651 $ 22,103,036
Interest-bearing ....................................................... 120,360,528 113,857,159
------------- -------------
Total deposits ....................................................... 145,287,179 135,960,195
------------- -------------
Federal Home Loan Bank advances ........................................... 19,233,459 10,777,712
Other borrowings .......................................................... 1,500,000 1,500,000
Other liabilities ......................................................... 3,184,398 5,527,618
------------- -------------
Total liabilities ................................................. 169,205,036 153,765,525
------------- -------------
STOCKHOLDERS' EQUITY
Preferred stock, $1 par value; shares authorized 250,000; shares issued and 20 10
outstanding Sept. 1997, 20; June 1997, 10
Common stock, $1 par value; shares authorized 2,500,000; shares issued and
outstanding Sept. 1997 and June 1997, 1,462,824 ......................... 1,462,824 1,462,824
Additional paid-in capital ................................................ 14,039,396 13,039,406
Retained earnings ......................................................... 512,113 171,171
------------- -------------
16,014,353 14,673,411
Unrealized gains (losses) on securities available for sale, net ........... 10,437 (60,185)
------------- -------------
Total stockholders' equity ........................................ 16,024,790 14,613,226
------------- -------------
Total liabilities and stockholders' equity ........................ $ 185,229,826 $ 168,378,751
============= =============
</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,
--------------------------------
1997 1996
---------- ----------
<S> <C> <C>
Interest income:
Interest and fees on loans ............................. $2,717,165 $1,346,115
Interest and dividends on securities ................... 499,436 520,981
Interest on federal funds sold ......................... 89,116 49,100
Other interest ......................................... 99,394 98,041
---------- ----------
Total interest income ............................. 3,405,111 2,014,237
---------- ----------
Interest expense:
Interest on deposits .................................. 1,492,958 919,141
Interest on other borrowings .......................... 264,314 89,128
---------- ----------
Total interest expense ............................ 1,757,272 1,008,269
---------- ----------
Net interest income ............................... 1,647,839 1,005,968
Provision for loan losses .................................. 304,355 157,400
---------- ----------
Net interest income after provision for loan losses 1,343,484 848,568
---------- ----------
Other income:
Merchant credit card fees, net of processing costs ..... 418,734 327,193
Trust department ....................................... 247,329 116,503
Deposit service fees ................................... 62,422 42,269
Other .................................................. 94,006 33,243
---------- ----------
Total other income ................................ 822,491 519,208
---------- ----------
Other expenses:
Salaries and benefits .................................. 967,293 563,171
Professional and data processing fees .................. 121,675 108,265
Advertising and marketing .............................. 51,922 30,890
Occupancy and equipment expense ........................ 201,898 138,886
Stationery and supplies ................................ 36,692 43,912
Provision for merchant credit card losses .............. 25,125 43,954
Postage and telephone .................................. 45,400 45,667
Other .................................................. 156,828 133,847
---------- ----------
Total other expenses .............................. 1,606,833 1,108,592
---------- ----------
Income before income taxes .................................. 559,142 259,184
Income taxes ................................................ 218,200 0
---------- ----------
Net income ........................................ $ 340,942 $ 259,184
========== ==========
Earnings (loss) per common share:
Primary ........................................... 0.22 0.18*
Fully diluted ..................................... 0.22 0.18*
Weighted average common shares outstanding ........ 1,462,824 1,437,824
Weighted average common and common equivalent
shares outstanding .......................... 1,654,594 1,437,824 *
<FN>
* Excludes the effects of common stock equivalents as resulting
dilution was less than 3%.
</FN>
</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,
--------------------------------
1997 1996
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income ............................................................ $ 340,942 $ 259,184
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Depreciation ........................................................ 97,497 68,035
Provision for loan losses ........................................... 304,355 157,400
Provision for merchant credit card losses ........................... 25,125 43,954
Amortization of premiums (accretion of discounts) on securities, net (4,526) (5,553)
Loans originated for sale ........................................... (7,514,145) (1,499,455)
Proceeds on sales of loans .......................................... 5,824,149 1,515,949
Net (gains) on sales of loans ....................................... (100,004) (16,494)
(Increase) decrease in accrued interest receivable .................. (16,621) 168,599
(Increase) in other assets .......................................... (452,097) (6,588)
Increase (decrease) in other liabilities ............................ (2,407,154) 2,334,681
------------ ------------
Net cash provided by (used in) operating activities .............. $ (3,902,479) $ 3,019,712
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Net (increase) decrease in federal funds sold ......................... 6,950,000 (3,887,000)
Net (increase) in certificates of deposits at financial institutions .. (208,109) (83,151)
Net loans originated .................................................. (19,450,100) (10,435,356)
Purchase of securities available for sale ............................. (1,284,294) (427,593)
Proceeds from maturity of securities .................................. 1,000,000 0
Proceeds from calls/paydowns on securities ............................ 187,333 222,380
(Purchase) of premises and equipment, net ............................. (243,113) (589,604)
------------ ------------
Net cash (used in) investing activities .......................... $(13,048,283) $(15,200,324)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase in deposit accounts ...................................... 9,326,984 10,541,254
Net (decrease) in federal funds purchased ............................. 0 (1,190,000)
Proceeds from issuance of preferred stock ............................. 1,000,000 0
Net increase in other borrowings ...................................... 0 500,000
Proceeds from Federal Home Loan Bank advances ......................... 8,500,000 6,500,000
Payments on Federal Home Loan Bank advances ........................... (44,253) (4,512,984)
------------ ------------
Net cash provided by financing activities ........................ $ 18,782,731 $ 11,838,270
------------ ------------
Net increase (decrease) in cash and due from banks ............... 1,831,969 (342,342)
Cash and due from banks, beginning ............................... 6,953,463 6,615,407
------------ ------------
Cash and due from banks, ending .................................. $ 8,785,432 $ 6,273,065
============ ============
Supplemental disclosure of cash flow information, cash payments for:
Interest .............................................................. $ 1,589,664 $ 1,043,818
============ ============
Income/franchise taxes ................................................ $ 265,000 $ 0
============ ============
Supplemental schedule of noncash investing activities:
Change in unrealized gains/losses on securities available for sale, net $ 70,622 $ 148,436
============ ============
</TABLE>
See Notes to Consolidated Condensed Financial Statements
<PAGE>
QUAD CITY HOLDINGS, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
SEPTEMBER 30, 1997
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 months ended September 30, 1997
are not necessarily indicative of the results that may be expected for the
fiscal year ending June 30, 1998.
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.
<PAGE>
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 Moline,
Illinois and in adjacent communities.
Quad City Bancard, Inc. ("Bancard") was organized 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 10,500 merchants process transactions with Bancard.
The Company has a fiscal year end of June 30.
FINANCIAL CONDITION
Total assets of the Company increased by $16,851,075 or 10.01% to $185,229,826
at September 30, 1997 from $168,378,751 at June 30, 1997. The growth primarily
resulted from an increase in deposits received from customers and from advances
received from the Federal Home Loan Bank.
Cash and due from banks increased by $1,831,969 or 26.35% to $8,785,432 at
September 30, 1997 from $6,953,463 at June 30, 1997 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,
1997, the Bank had invested $2,240,000 in such funds. This amount decreased by
$6,950,000, or 75.63%, from $9,190,000 at June 30, 1997.
Certificates of deposit at financial institutions increased by $208,109 or 3.88%
to $5,567,233 at September 30, 1997 from $5,359,124 at June 30, 1997. The
increase was due to new deposits in other banks in the form of certificates of
deposit.
Securities increased by $210,918 or 0.66% to $32,022,676 at September 30, 1997
from $31,811,758 at June 30, 1997. The increase was the result of a number of
transactions in the security portfolio. Additional securities, classified as
available for sale, were purchased in the amount of $1,284,294, the net of the
amortization of premiums and accretion of discounts was $4,526, and the increase
in unrealized gains on securities available for sale, before applicable income
tax, was $109,431. The increase was offset by paydowns received on mortgage
backed securities of $187,333 and the maturity of a $1,000,000 security.
Loans receivable increased by $21,250,878 or 19.61% to $129,616,307 at September
30, 1997 from $108,365,429 at June 30, 1997. The increase was the result of the
origination of $45,771,857 of commercial business, consumer and real estate
loans, less loan repayments of $24,520,979.
The allowance for estimated losses on loans at September 30, 1997 was
$1,947,633, representing approximately 1.5% of gross loans outstanding.
Similarly, the allowance for estimated losses on loans at June 30, 1997 was
approximately 1.5% of gross loans outstanding, or $1,632,500. Although
management believes that the allowance for estimated losses on loans at
September 30, 1997 was at a level 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 $145,616 or 2.77% to $5,394,305 at September
30, 1997 from $5,248,689 at June 30, 1997. The increase resulted from the
purchase of additional furniture, fixtures and equipment for the Bank and
Bancard, and certain site construction costs for the new Moline banking
location, offset by depreciation expense.
Accrued interest receivable on loans, securities and interest-bearing cash
accounts increased by $16,621 or 1.21% to $1,390,928 at September 30, 1997 from
$1,374,307 at June 30, 1997.
<PAGE>
Other assets increased by $452,097 or 26.46% to $2,160,578 at September 30, 1997
from $1,708,481 at June 30, 1997. Other assets consisted mainly of miscellaneous
receivables, prepaid expenses and accrued trust department income.
Deposits increased by $9,326,984 or 6.86% to $145,287,179 at September 30, 1997
from $135,960,195 at June 30, 1997. The increase resulted from an $3,600,438
increase in non-interest bearing, NOW, money market and other savings accounts
and a $5,726,546 increase in certificates of deposit.
Federal Home Loan Bank ("FHLB") advances increased by $8,455,747 or 78.46% to
$19,233,459 at September 30, 1997 from $10,777,712 at June 30, 1997. As a result
of its membership in the FHLB of Des Moines, the Bank has the ability to borrow
funds for short- or long-term purposes under a variety of programs. . The
increase was primarily attributable to the fact that deposit growth was not as
great as the loan demand during the fiscal year. Additionally, the use of the
advances enabled the bank to hedge against potential rising interest rates.
Other borrowings was $1,500,000 at both September 30, 1997 and June 30, 1997.
Other borrowings consist of the amount outstanding on a $1,500,000 revolving
credit note with a third party lender, 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 an 8% leverage ratio.
Other liabilities decreased by $2,343,220 or 42.39% to $3,184,398 at September
30, 1997 from $5,527,618 at June 30, 1997. Other liabilities was comprised of
unpaid amounts for various products and services, and accrued but unpaid
interest on deposits. The decrease was primarily due to the decrease in the
accounts payable to merchants on Bancard s books at the end of the quarter.
Preferred stock increased by $10 to $20 at September 30, 1997 from $10 at June
30, 1997. The increase was due to the issuance of 10 shares at $1.00 par value
of perpetual, nonvoting preferred stock for a consideration of $1,000,000.
Common stock of $1,462,824 at both September 30, 1997 and June 30, 1997
represented 1,462,824 shares at $1.00 par value of the Company s common stock.
Additional paid-in capital increased by $999,990 to $14,039,396 at September 30,
1997 from $13,039,406 at June 30, 1997. The increase resulted from cash received
in excess of the par value for the 10 shares of preferred stock.
Retained earnings increased by $340,942 to $512,113 at September 30, 1997 from
$171,171 at June 30, 1997 to reflect the net income for the three months.
Unrealized gains and losses on securities available for sale, net of related
income taxes, was a $10,437 gain at September 30, 1997 as compared to a $60,185
loss at June 30, 1997. The increase was attributable to the increase in fair
value of the securities, identified as available for sale, for the quarter.
RESULTS OF OPERATIONS
Net income for the three month period ended September 30, 1997 increased to
$340,942 as compared to a net income of $259,184 for the same period in 1996.
Interest income increased by $1,390,874 from $2,014,237 for the three month
period ended September 30, 1996 to $3,405,111 for the three month period ended
September 30, 1997. The 69.05% rise in interest income was primarily
attributable to greater average outstanding balances in interest earning assets.
Interest expense increased by $749,003 from $1,008,269 for the three month
period ended September 30, 1996 to $1,757,272 for the three month period ended
September 30, 1997. The 74.29% 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, 1997 and 1996. The provision for loan losses
increased by $146,955 from $157,400 for the three month period ended September
30, 1996 to $304,355 for the three month period ended September 30, 1997. The
93.36% increase in the provision was made as a result of the increase in the
total loan portfolio during this quarter. Asset quality is a priority for the
Company and its subsidiaries. The ability to grow profitably is, in part,
dependent upon the ability to maintain that quality. The Company intends to
continue to closely monitor the loan portfolio through analysis and currently,
does not anticipate any material losses.
<PAGE>
Other income increased by $303,283 from $519,208 for the three month period
ended September 30, 1996 to $822,491 for the three month period ended September
30, 1997. Other income at September 30, 1997 and 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 of
the Bank.
The main components of other expenses were primarily salaries and benefits,
occupancy and equipment expenses, and professional and data processing fees, for
both periods. Other expenses for the three months ended September 30, 1997 were
$1,606,833 as compared to $1,108,592 for the same period in 1996.
From September 30, 1996 to September 30, 1997, salaries and benefits experienced
the most significant increase of any noninterest expense component. For the
three months ended September 30, 1997, total salaries and benefits increased to
$967,293, or $404,122 over the September 30, 1996 total of $563,171. The change
was primarily attributable to the addition of new employees. Some of the new
positions added during that twelve month period were the following: two trust
officers, a technology manager, a commercial loan officer, three real estate
loan originators, a real estate underwriter, a loan quality manager, a credit
analyst, a financial accountant, and a human resource officer.
OTHER DEVELOPMENTS
Construction of the Davenport full service banking facility was completed in
July of 1996 to provide for the convenience of customers and to expand the Bank
s market territory. The two story building is in two segments that are separated
by an atrium. The Bank owns the south half of the building, while the northern
portion is owned by the developer. The Bank occupies its first floor and
utilizes the basement for the operations and item processing department, as well
as storage. The second floor is leased to two law firms. In addition, the
residential real estate department of the Bank will be leasing approximately
2,500 square feet in the attached building across the first floor atrium.
Renovation of a third full service banking facility is underway at the historic
Velie Plantation Mansion located near the intersection of 7th Street and John
Deere Road in Moline near the Rock Island/Moline border. The building is owned
by the developer and both the Bank and Bancard will be major tenants. Bancard
plans to relocate its operations to the lower level of the 30,000 square foot
building in late 1997. The Bank will begin its operations on the first floor of
the building in early 1998. The Company obtained an Illinois banking charter
that was subsequently merged into the Iowa charter. The Bank currently leases
approximately 1,500 square feet of office space in a building adjacent to the
Velie Plantation Mansion property and has been operating a temporary branch
facility since June 16, 1997.
NEW ACCOUNTING PRONOUNCEMENTS
The Financial Accounting Standards Board has issued SFAS No. 128, "Earnings per
Share" which becomes effective for financial statements issued for periods
ending after December 15, 1997. This Statement establishes standards for
computing and presenting earnings per share ("EPS") and applies to entities with
publicly held stock or potential common stock. This Statement simplifies the
standards for computing earnings per share previously found in APB Opinion No.
15, "Earnings per Share," and makes them comparable to international EPS
standards. It replaces the presentation of primary EPS with a presentation of
basic EPS. It also requires dual presentation of basic and diluted EPS on the
face of the income statement of all entities with complex capital structures and
requires a reconciliation of the numerator and denominator of the basic EPS
computation to the numerator and denominator of the diluted EPS computation.
Management believes that adoption of this Statement will not have a material
effect on the consolidated financial statements.
The Financial Accounting Standards Board has issued SFAS No. 130 "Reporting
Comprehensive Income" which is effective for fiscal years beginning after
December 15, 1997. This Statement establishes standards for reporting and
display of comprehensive income and its components in a full set of
general-purpose financial statements. Management believes that adoption of this
Statement will not have a material effect on the consolidated financial
statements.
The Financial Accounting Standards Board has issued SFAS No. 131 "Disclosures
about Segments of an Enterprise and Related Information" which is effective for
fiscal years beginning after December 15, 1997. This Statement establishes
standards for the way that public business enterprises report information about
operating segments in annual financial statements and requires that those
enterprises report selected information about operating segments in interim
financial reports issued to stockholders. It also establishes standards for
related disclosures about products and services, geographic areas, and major
customers. Management believes that adoption of this Statement will not have a
material effect on the consolidated financial statements.
<PAGE>
Part II
QUAD CITY HOLDINGS, INC. AND SUBSIDIARIES
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
(a) Exhibits
(27) Financial Data Schedule
(b) Reports on Form 8-K
None.
<PAGE>
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 10, 1997 /s/ Michael A.Bauer
----------------- -----------------------------------
Michael A. Bauer, Chairman
Date November 10, 1997 /s/ Douglas M. Hultquist
----------------- -----------------------------------
Douglas M. Hultquist, President
Principal Executive, Financial &
Accounting Officer
<TABLE> <S> <C>
<ARTICLE> 9
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
SEPTEMBER 30, 1997 FORM 10-QSB OF QUAD CITY 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-30-1998
<PERIOD-END> SEP-30-1997
<CASH> 8,785
<INT-BEARING-DEPOSITS> 5,567
<FED-FUNDS-SOLD> 2,240
<TRADING-ASSETS> 0
<INVESTMENTS-HELD-FOR-SALE> 29,270
<INVESTMENTS-CARRYING> 2,753
<INVESTMENTS-MARKET> 0
<LOANS> 129,616
<ALLOWANCE> 1,948
<TOTAL-ASSETS> 185,230
<DEPOSITS> 145,287
<SHORT-TERM> 0
<LIABILITIES-OTHER> 3,184
<LONG-TERM> 20,733
0
0
<COMMON> 1,463
<OTHER-SE> 14,562
<TOTAL-LIABILITIES-AND-EQUITY> 185,230
<INTEREST-LOAN> 2,717
<INTEREST-INVEST> 499
<INTEREST-OTHER> 188
<INTEREST-TOTAL> 3,405
<INTEREST-DEPOSIT> 1,493
<INTEREST-EXPENSE> 1,757
<INTEREST-INCOME-NET> 1,647
<LOAN-LOSSES> 304
<SECURITIES-GAINS> 0
<EXPENSE-OTHER> 1,607
<INCOME-PRETAX> 559
<INCOME-PRE-EXTRAORDINARY> 341
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 341
<EPS-PRIMARY> .22
<EPS-DILUTED> .22
<YIELD-ACTUAL> 0
<LOANS-NON> 0
<LOANS-PAST> 0
<LOANS-TROUBLED> 0
<LOANS-PROBLEM> 0
<ALLOWANCE-OPEN> 1,633
<CHARGE-OFFS> 0
<RECOVERIES> (11)
<ALLOWANCE-CLOSE> 1,948
<ALLOWANCE-DOMESTIC> 1,948
<ALLOWANCE-FOREIGN> 0
<ALLOWANCE-UNALLOCATED> 0
</TABLE>
