Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (January 2024)
24 slides from Qcr's investor presentation, Jan 26, 2024
Slide 1: QCR Investor Presentation
QCR Investor Presenitat cig
Slide 2: Slide 2
Slide 3: Forward-Looking Statements
3 FORWARD - LOOKING STATEMENTS Special Note Concerning Forward - Looking Statements . This document contains, and future oral and written statements of the Company and its management may contain, forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995
Slide 4: Consistent Top Tier Financial Performance
Consistent Top Tier Financial Performance • Upper quartile returns compared to proxy peers • EPS CAGR of 17.2% in last five years and positioned for sustained growth • High profitability and low dividend payout ratio quickly builds core equity capital Diversified Sources of Revenue • Diverse and gro
Slide 5: Exceptional Growth in Key Financial Metrics
5 Exceptional Growth in Key Financial Metrics Since the end of 2018, our company has grown total consolidated assets at a 14.0%* compounded annual growth rate and delivered consistent, steady growth - outperforming many of our peers. CAGR = Compound Annualized Growth Rate. * Data excluding Rockford
Slide 6: How is QCRH Unique? Diversified Business Lines
6 How is QCRH Unique? Diversified Business Lines Drive Outstanding Results Traditional Banking Our Complementary High - Performing Business Lines Correspondent Banking Wealth Management Specialty Finance Group • Consumer & retail banking • Complex commercial lending • Sophisticated treasury manageme
Slide 7: Specialty Finance Group (SFG)
7 $28.3 $74.8 $61.0 $41.3 $20 $10.8 $0 $40 $60 $80 $100 2018 2019 2020 2021 2022 2023 Fee Income Growth ($MM) Our SFG business is unique and offers: • Strong pipelines built on relationships • Complexity which creates significant barriers to entry by competitors • Consistent source of revenue in all
Slide 8: Low Income Housing Tax Credit Loans
QCRH (LENDER) BORROWER / LOW INCOME HOUSING PROJECT TAX CREDIT EQUITY INVESTORS Loan Payments Tax Credits Equity Investment Loa n Rent STRONG BORROWERS • Experienced low - income housing developers • Tax credit investors are primarily other banks and corporate investors HIGH - QUALITY LOANS • Very s
Slide 9: LIHTC Securitization Highlights
Successful closing of first two securitizations selling $265MM of LIHTC Loans via Freddie Mac Programs • Strengthened capital - improved TCE/TA approximately 27 bps • Increased liquidity • Improved NIM approximately 2 - 3 bps • Net gain upon sale of $664 thousand Securitization will allow us to… • P
Slide 10: A Broad Scope of Wealth Management Services
10 A Broad Scope of Wealth Management Services $11.4 $12.0 $12.6 $15.3 $14.5 $15.6 $0 $6 $12 $18 2018 2019 2020 2021 2022 2023 (1) All data excludes Bates and RB&T. Revenue ($M) (1) $2.5 $3.1 $3.4 $4.2 $3.6 $4.1 $0.9 $1.0 $1.0 $1.2 $1.0 $1.2 $0 $2 $4 $6 2018 2023 $4.1 $5.4 $4.6 Assets Under Manageme
Slide 11: We Do Business in Vibrant Markets
11 We Do Business in Vibrant Markets • Relationships matter and differentiate us from big banks • Robust commercial, industrial, and technology activity • Ability to gain prominent market share • Mid - sized metros 200K - 500K population MSAs • Strong demographics & highly educated workforce drive s
Slide 12: A Consistent Track Record of Asset Growth
12 $2.9 $4.4 $6.1 $5.7 $4.9 $0.6 $0.3 $0.6 $3.5 $8.5 $7.9 $1.2 2016 2017 2018 2019 2020 2021 2022 2023 Total Asset s Acquired Assets (1) Rockford Bank & Trust assets were removed from this data. (2) Includes $345.7 million of the assets of m2 Equipment Finance, as this entity is wholly - owned by an
Slide 13: Loan Growth Driven by Commercial Lending
13 $1.3 $1.5 $1.7 $1.6 $1.7 $1.8 $1.6 (LIHTC $0.1) $1.8 (LIHTC $0.2) $2.1 (LIHTC $0.6) $2.6 (LIHTC $1.1) $3.7 (LIHTC $1.6) $4.0 (LIHTC $1.7) $0.2 $0.1 $0.2 $0.1 $0.2 $0.1 $0.3 $0.1 $0.5 $0.1 $0.5 $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 $0.1 $3.3 $4.3 $4.7 $6.1 $6.5 $4.0 $3.7 $0.0 2018 2019 2020 2021 2022 2023
Slide 14: Our High-Performing CRE Portfolio
14 Our High - Performing CRE Portfolio TOTAL CRE PORTFOLIO: $4.2 Billion as of 12/31/23 • CRE IS 65% of total loans • CRE - Office represents only 3% of Total Loans • 14 loans > $3 million (total of $69 million) • Primarily smaller facilities (three stories or less) and located within the QCRH footp
Slide 15: Deposit Growth Driven by Core Deposits
15 Deposit Growth Driven by Core Deposits Core Deposits* Represent 96% of Total Deposits ($B) as of 12/31/23 * Core deposits are defined as total deposits less brokered deposits. Rockford Bank & Trust deposits excluded from this data. 34% 31% 25% 20% 21% 16% 48% 52% 60% 57% 65% 67% 15% 15% 13% 16% 1
Slide 16: Diversified and Granular Deposit Base
16 Diversified and Granular Deposit Base Average Account Balance: $18,000 Portfolio Percentage: 28% Average Account Balance: $130,000 Portfolio Percentage: 64% Average Account Balance: $957,000 Portfolio Percentage: 8% All amounts as of 12/31/23. *Insured deposits represent FDIC insured, State insur
Slide 17: Robust and Diverse Liquidity
$0.1 $1.2 $0.3 $0.7 $0.1 $0.5 $1.4 Total Liquidity Sources (Ex. AFS and HTM Bonds) Total Uninsured Deposits * 17 Robust and Diverse Liquidity $3.1B $1.2B Dollars In billions. As of 12/31/23. *Uninsured deposits exclude deposits that are FDIC insured, State insured, collateralized, or insured through
Slide 18: Our Strong Capital Position
18 Our Strong Capital Position QCRH is well - positioned for long - term success: • Successful subordinated debt raises in 2019, 2020 and 2022 bolstered total risk - based capital • Lowest dividend payout ratio in peer group retains capital for strong organic and M&A growth • Acquisition of Guaranty
Slide 19: Top Tier TBVPS Growth
19 Top Tier TBVPS Growth * TBVPS of $40.68 and $47.15 for 2022 and 12/31/23 excludes the impact of AOCI. ** KRX calculated as the median of the current 50 KRX constituents excluding PACW as of September 30, 2023. QCRH TBVPS ($) TBVPS (%) $14.70 $15.92 $17.08 $14.29 $17.50 $38.02 $43.81 $40.68 $36.82
Slide 20: NPAs / Assets
20 NPAs / Assets Focused on maintaining excellent asset quality and resolving problem assets, resulting in: • Better than peer historical loss rates • Conservative reserve for credit losses • Strategy to aggressively manage problem credits • Average NPAs of 0.92% over the past 20 years 0.81% 0.56% 0
Slide 21: Consistent Improvement in Shareholder Returns
21 Consistent Improvement in Shareholder Returns $46 $59 $63 $100 $115 $115 $3.08 $3.66 $3.96 $6.27 $6.80 $6.82 2018 2019 2020 2021 2022 2023 Adjusted Net Income Adjusted EPS Note: All data excludes Rockford Bank & Trust and 2019 excludes $12.3 million gain on sale from the RB&T transaction. • Top q
Slide 22: QCRH Is Building a Long-Term EPS Track Record
22 QCRH Is Building a Long - Term EPS Track Record QCRH Core EPS ($) Core EPS CAGR (%) KRX* 3.4% 17.2% 5 - year 7.4% 14.3% 10 - year 5.3% 8.7% 20 - year $0.92 $0.53 $1.84 $1.79 $1.72 $1.99 $3.96 $3.66 $3.08 $2.66 $2.31 $6.80 $6.82 $6.27 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 202
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Slide 24: 3551 th Street, Moline IL 61265 © Copyright 2023 QCR Holdings, Inc. All Rights
3551 7 th Street, Moline IL 61265 © Copyright 2023 QCR Holdings, Inc. All Rights Reserved