Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — FY2012 Earnings Presentation
31 slides from Qcr's earnings presentation, Jan 29, 2013
Slide 1: 2012 Financial Presentation
2012 Financial Presentation
Slide 2: Forward-Looking Statements
QB INC. FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, These statements include, but are not limited to, descriptions of the financial co
Slide 3: Forward-Looking Statements - Continued
QB INC. FORWARD-LOOKING STATEMENTS - Continued (ix) changes in the prices, values and sales volumes of residential and commercial real estate; (x) the effects of competition from a wide variety of local, regional, national and other providers of financial, investment and insurance services; (xi) the
Slide 4: Non-GAAP Financial Measures
QB INC. NON-GAAP FINANCIAL MEASURES These slides contain non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure is a numerical measure of the registrant's historical or future financial performance, financial position or cash flows that excludes amounts, or is subjec
Slide 5: Corporate Overview
arrelationship driven organization’ Corporate Overview Founded in 1993 Headquartered in Moline, IL SYMBOL - QCRH $2.02 Bil $ 1.34 Billion in deposits nin assets $ 1.24 Billion in loans 10 Facilities Quad City Bank & Trust (6) Rockford Bank & Trust (2) Cedar Rapids Bank & Trust (2) ‘m2 Lease Funds LL
Slide 6: History of QCR Holdings, Inc.
arelationship d History of QCR Holdings, Inc. 1993 Founded by Mike Bauer and Doug Hultquist 1994 Quad City Bank & Trust* — Currently $1.13 Billion in Assets 2001 Cedar Rapids Bank & Trust* — Currently $587 Million in Assets 2005 Rockford Bank & Trust* — Currently $300 Million in Assets 2005 Quad Cit
Slide 7: Top MSAs / Iowa and Illinois
HOLDINGS, INC. artelationship driven organization* Top 25 MSAs / lowa and Illinois Projected (Chieago-aat Noperte, 1LIN:WE 313737 za 3178 098% 57427 250% Saint Louis MOL 2.123, 135 953 18 51297 1528 ‘Omahs- Coun Buf, NEA 23608 1 3 509 52378 1928 Des Meines West Des Moines, 1A 13389 82 2 731 5338 23
Slide 8: Quad City Bank & Trust
HOLDINGS, INC. arelation ipdri Quad City Bank & Trust Hy. John H. Anderson, President & CEO Assets: $1.13 Billion Population: 380,829 Market Deposits: $7.3 Billion Davenport, Moline, Rock Island MSA — located on the Mississippi River Major Employers Rock Istand Arsenal Deere & Company Genesis Health
Slide 9: Cedar Rapids Bank & Trust
Cedar Rapids Bank & Trust my Larry J. Helling, President & CEO Assets: $587 Million Population: 260,153 Market Deposits: $4.7 Billion Cedar Rapids MSA Major Employers Rockwell Collins ‘Aegon USA St. Lukes Hospital Mercy Medical Center Whiripoo! Corporation Kirkwood Community College ‘Quaker Food and
Slide 10: Rockford Bank & Trust
HOLDINGS, INC. arelation ipdri Rockford Bank & Trust ROCKFORD. whee Thomas D. Budd, President & CEO Assets: $300 Million Population: 359,336 (expected to ow to $52,000 by 2030) Market Deposits: $5.2 Billion Rockford MSA Major Employers Rockford Public School District ‘Swedish American Health Systems
Slide 11: Strategic Advantages
QB INC. Strategic Advantages + 3 distinct (yet similar) operating charters — able to customize solutions by market Managed by local veteran bankers, governed by local Board of Directors, local decisions, local solutions, enhanced market specific knowledge 3 charters supported by QCRH Group Operation
Slide 12: Summary of Financial Results 2007-2012
HOLDINGS, INC. Summary of Financial Results 2007-2012 Netinterest income Non-interest income Non-interest expense Pre-tax pre-provision Provision expense Income before taxes Income taxes Income from continuing operations Income (loss) from discontinued operations Netincome Less: netincome attributab
Slide 13: Total Consolidated Assets
HOLDINGS, INC. Total Consolidated Assets IN MILLIONS OF DOLLARS CAGR 1994-2011 24.11% CAGR 1994-2007 32.26% CAGR 2008-2011 7.43% Dec 94 ec95 ec-96 Dec 97 Dec98 ec 89 ec-00 ecat ec-02 Dec-03 Deco ec-05 Dec-06 Deco7 Dec.08 Dec-09 ec10 Dect
Slide 14: Total Consolidated Deposits
HOLDINGS, INC. arelation ip driven orgai Total Consolidated Deposits IN MILLIONS OF DOLLARS $1,400 $1,200 $1,000 $800 $600 $400 $200 PEPE PPP EEE EEE EET? 6 8 6 8 6 8 6 8 6 6 8 Dec. Dec Dect Dec-10 Deo-tt
Slide 15: Loan Portfolio Composition
HOLDINGS, INC. Loan Portfolio Composition September 30, 2012 IN MILLIONS OF DOLLARS Dollar Percent M Commercial & Industral 355.0 29 % Non Owner Occupied Commercial Real Estate 345.9 28 (Owner Occupied Commercial Real Estate 199.8 16 Residential Real Estate 125 9 Direct Financing Leases 102.2 8 Inst
Slide 16: Our Mission / Executive Management Team
OUR MISSION: QCR Holdings, Inc. will be the premier provider of financial services to businesses and individuals for whom relationships matter, in markets where we can excel. QCR Holdings, Inc. Executive Management Team LEFT TO RIGHT alec Totn Rodrig HOLDINGS, INC. dd Gi Vie Quinn ultquist jill DeKe
Slide 17: Culture
QB INC. Preserving Charters Summary Culture It’s who we are. If we change this, it will have a dramatic impact on the morale and retention of key staff and seriously impact our ability to evolve and compete. Entrepreneurial culture and employee drive is diminished as most employees will begin to ass
Slide 18: Growth Prospects
QB INC. arelationship: Preserving Charters Summary Growth Prospects As the economy improves, our growth prospects are better. Our growth out- performed the market when economic times were better. When the economic conditions improve, we will have a much better chance to produce organic growth.
Slide 19: Boards
Preserving Charters Summary Boards Many of our current board members would leave over time. When we originally asked them to join, being part of a “real” board was critical in the decision process of those who decided to join us. Local boards are strong advocates and provide needed feedback and info
Slide 20: Perception
QB INC. arelationship dri Preserving Charters Summary Perception Local community banks have gained favor in this challenging environment. Local autonomy is strongly aligned with a strong community bank model. Clients want to know their banker and decision maker.
Slide 21: Focus
Preserving Charters Summary Focus The Company focus becomes “Holding Company” and not “Bank”.
Slide 22: Competitors
QB INC. arelationship dri Preserving Charters Summary Competitors We lose our competitive advantage and our uniqueness over the mega banks. These competitors would use this against us.
Slide 23: Customer Service
QB INC. arelationship dri Preserving Charters Summary Customer Service Centralization could diminish local decision making — slowing it down due to centralization. Each market could be affected by disallowing local market uniqueness and not allowing for them.
Slide 24: Credit Quality
Preserving Charters Summary Credit Quality Our credit quality is better than peers that have one charter. This is driven by the fact that decision makers (management and board) are closer to the community and the clients they serve.
Slide 25: Scale
QB INC. Preserving Charters Summary Scale Each of the current charters and markets have the potential to be larger than $1 Billion in assets. This scale should allow us to capture much of the efficiency of having one charter without the challenges that one charter creates.
Slide 26: Cost Savings
Preserving Charters Summary Cost Savings The cost savings (even ii icipated to be $1.5MM (pre-tax)) would be more than offset by competitive disadvantages. With separate charters there is more accountability at each location and more pride in each location.
Slide 27: Shareholder Loyalty
QB INC. arelationship driven orga Preserving Charters Summary Shareholder Loyalty We do distinct capital raises in each market.
Slide 28: QCRH Historical Capital Transactions
QCR HOLDINGS, INC. artelationship driven organization* QCRH Historical Capital Transactions October 1993 IPO of $14M in Common Stock at $10 per share (split adjusted = $4.44 per share today). December 1996 Private Placement of $1M in Preferred Stock at 9.75% December 1997 Private Placement of $1.5M
Slide 29: QCRH Historical Capital Transactions
QCR HOLDINGS, INC. arelationship driven orga QCRH Historical Capital Transactions February 2004 Pooled Trust Preferred ($12M fixed at 6.93%; $8M floating at Libor + 2.85%) (Redemption of $12M at 9.20% TRUPS) May 2004 3 for 2 Common Stock Split December 2004 Private Placement of $5M in Common Stock a
Slide 30: QCRH Historical Capital Transactions
QCR HOLDINGS, INC. artelationship driven organization* QCRH Historical Capital Transactions March 2010 Private Placement of $2.7M in Subordinated Debt — 54,000 common stock warrants at $10.00 June 2010 Private Placement of $25M in Preferred Stock at 7% (redemption of $20.9M in Preferred Stock) Septe
Slide 31: Thank You / Questions
Thank, (Ou, nook INC. Questions