Nov 22 - The board of directors of QCR Holdings Inc. in Moline, Ill., (Nasdaq: QCRH) has approved the conversion of all 25,000 outstanding shares of the company's series E non-cumulative convertible perpetual preferred stock into shares of the company's common stock. Following this action by the board of directors, the company's transfer agent, on behalf of the company, mailed notices of the conversion to holders of the series E preferred stock by first class mail. The stock conversion will become effective on Dec. 23, 2013.
Each share of the series E preferred stock will be converted into the number of shares of common stock that results from dividing $1,000 (the issuance price per share of the series E preferred stock) by $12.15 (the conversion price per share). No fractional shares will be issued as a result of the conversion. Instead, holders will be entitled to receive cash in an amount equal to any fractional shares they are entitled to multiplied by the closing price of the company's common stock on Dec. 20, 2013, the trading day immediately preceding the conversion date. As a result, approximately 2 million shares of common stock will be issued.
"The conversion of our series E preferred stock is another significant accomplishment in our previously stated long-term capital plan for the company," stated Todd A. Gipple, executive vice president, chief operating officer and chief financial officer. He continued by adding that "this transaction will increase our tangible common equity by approximately 100 basis points and will eliminate $1.75 million in preferred stock dividends, annually. We also continue to be committed to fully redeeming the remaining $30 million of our Small Business Lending Fund preferred stock, and with our recent acquisition now fully integrated, we are turning our attention toward further redemptions of the SBLF capital. Executing our capital plan and avoiding an excessively dilutive common equity raise contributed to the significant growth in shareholder value that we have experienced in 2012 and 2013."
About QCR Holdings Inc.
QCR Holdings Inc., headquartered in Moline, Ill., is a relationship-driven, multi-bank holding company, which serves the Quad City and Cedar Rapids in Iowa and Rockford, Ill., communities through its wholly owned subsidiary banks. Quad City Bank & Trust Company, which is based in Bettendorf, Iowa, and commenced operations in 1994, Cedar Rapids Bank & Trust Company, which is based in Cedar Rapids, Iowa, and commenced operations in 2001, and Rockford Bank & Trust Company, which is based in Rockford, Ill., and commenced operations in 2005, provide full-service commercial and consumer banking and trust and asset management services. Quad City Bank & Trust Company also engages in commercial leasing through its wholly owned subsidiary, m2 Lease Funds, LLC, based in Milwaukee, Wis. With the acquisition of Community National Bank on May 13, 2013, the company now serves the Waterloo/Cedar Falls, Iowa, community through Community Bank & Trust, a division of Cedar Rapids Bank & Trust Company.