QCR Holdings to convert 25,000 series E convertible preferreds Dec. 23

By Toni Weeks

San Luis Obispo, Calif., Nov. 21 - The board of directors of QCR Holdings, Inc. has approved the conversion of the company's 25,000 outstanding shares of series E non-cumulative convertible perpetual preferred stock into common stock.

The company expects that about 2 million common shares will be issued as a result of the conversion, which will take place on Dec. 23.

According to a press release, each series E preferred will be converted into the number of common shares equal to $1,000 divided by the conversion price of $12.15. Holders will receive a cash payment for any fractional shares.

The company's common shares (Nasdaq: QCRH) closed at $17.90 on Nov. 20.

"The conversion of our series E preferred stock is another significant accomplishment in our previously stated long-term capital plan for the company," executive vice president, chief operating officer and chief financial officer Todd A. Gipple said in a press release.

"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," he added.

Moline, Ill.-based QCR Holdings is a multi-bank holding company.

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