Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (August 2012)
36 slides from Qcr's investor presentation, Aug 13, 2012
Slide 1: QCR Holdings, Inc. 2012 Financial Presentation
QCR HOLDINGS, INC. 2012 Financial Presentation
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements within the meaning of Section 27A of the Secu 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 condition, resul
Slide 3: Forward-Looking Statements - Continued
FORWARD-LOOKING STATEMENTS - Continued 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 risks of mer
Slide 4: Non-GAAP Financial Measures
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 subject to adj
Slide 5: Table of Contents
oe Ho! IGS, INC. artelationship driven organization” Table of Contents Wh WG AL -E.........seseeresseersssenece Our Strategy...........ccccceseeseeeneee Financlals2@accc2 nae, Key Differentiators ...............008 AD PONIXs rssesevecessrerercseveceseaess
Slide 6: Corporate Overview
Corporate Overview Founded in 1993 Headquartered in Moline, IL SYMBOL - QCRH $2.04 Billion in assets $ 1.31 Billion in deposits 10 Facilities ‘Quad City Bank & Trust (5) Rockford Bank & Trust (2) Cedar Rapids Bank & Trust (2) | | $ 1.21 Billion in loans m2 Lease Funds LLC (1) Shares Outstanding: 4.8
Slide 7: Top MSAs / Iowa and Illinois
Top 25 MSAs / lowa and Illinois usa Deposits ($m) otinst Wot Branches Total Population popu (Chicage-lotet Naperil, LIN WI seers 255 327 9739919 185% 385,706, Saint Lous, MOAL s71.7004 wae 85 251.619 198 $57,102 ‘Oman Counc Bus, NEA 3217255 % 26 958.099, 4a 3591328, es Moines. 1A 16.1604 5 2s 574520
Slide 8: Quad City Bank & Trust
SD Quad City Bank & Trust a John H. Anderson, President & CEO Assets: $1.16 Billion Population: 380,829 Market Deposits: $7.3 Billion ‘Davenport, Moline, Rock Island MSA — located on the ‘Mississippi River Major Employers Rock Island Arsenal Deere & Company Genesis Health Systems Trinity Regional He
Slide 9: Cedar Rapids Bank & Trust
SD Cedar Rapids Bank & Trust ma’ Larry J. Helling, President & CEO Assets: $581 Million Population: 260,153, Market Deposits: $4.7 Billion Cedar Rapids MSA Major Employers Rockwell Collins ‘Aegon USA St. Lukes Hospital Mercy Medical Center Whirlpool Corporation Kirkwood Community College Quaker Food
Slide 10: Rockford Bank & Trust
SD Rockford Bank & Trust hie Thomas D. Budd, President & CEO Assets: $301 Million Population: 359,336 (expected to grow to 552,000 by 2030) Market Deposits: $5.2 Billion Rockford MSA Major Employers Rockford Public Schoo! District ‘Swedish American Health Systems Chrysler (Belvidere Assembly Plant)
Slide 11: Strategic Advantages: distinct (yet similar) operating charters
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 Operations team that
Slide 12: Strategic priorities
nck... a relationship dri Prioritization of growth in earnings and earnings per share (EPS), over growth in assets Preservation of capital and increasing tangible common equity (TCE) to allow for redemption of SBLF Capital without the need for a dilutive common equity raise Continue to maintain adeq
Slide 13: Summary of Financial Results 2007-2012
wee Ho! IGS, INC. arelationship driven organization’ Summary of Financial Results 2007-2012 2007 2008 2009 2010 2011 204 Net interest income $34,952 $44,623 $50,662 $49,864 «$54,145 $57,438 ‘Non-interest income 13499 «13.931 15,547 15,408 «17,462 (16,048 'Non-interest expense (95,734) (42,334) (46,9
Slide 14: Proxy Peer Comparisons
Proxy Peer Comparisons QCR Holdings, Inc. aQcBT CRBT RBT Average Median Assets $1.1 Billion $581 Million $301 Million $2.0 Billion Toe ceil Rata 12.6% 13.3% 15.8% 18.3% 14.8% TCE NA NA NA 7.9% 8.0% Texas Ratio 17.3% 11.6% 32.8% 29.6% 22.3% NPAs/Assets 1.5% 1.1% 4.2% 2.8% 2.1% ROAA 1.0% 0.9% 0.4% 11%
Slide 15: Strategic Issues Impacting Stock Price
oe Ho! IGS, INC. a relationship driven 0 Strategic Issues Impacting Stock Price Low Tangible Common Equity Ratio — More Common Shares? Lack of liquidity in our stock SBLF Capital — After Partial Redemption in Q2 2012, How Will Remaining $29.9 MM Be Redeemed? Asset Quality Questions — Have NPA’s Peak
Slide 16: QCR Holdings, Inc. Capital Structure
R HOLDINGS, INC. artelationship driven organization” QCR Holdings, Inc. Capital Structure June 30, 2012 DIVIDENDS / INTEREST Preferred F* — $29.9M at 5.00% Preferred E ** —$25.0M at7.00% Trust Il $12.4M floating at 3.32% (3ML + 2.85%) Trust Ill $8.2M floating at 3.32% (3ML + 2.85%) Trust IV $5.2M fl
Slide 17: Total Consolidated Assets
wee Ho! IGS, INC. atelationship driven organizatior Total Consolidated Assets IN MILLIONS OF DOLLARS CAGR 1994-2011 24.11% CAGR iee42007 32.26% car zg z0t1 743% $1,750 $1,500 $1,250 $1,000 $750 $500 $250 Pang Dec03 Deco 0 ec05 Dec-10 Dees iad Dec 98
Slide 18: Total Consolidated Deposits
ete arelationship driven organization’ Total Consolidated Deposits IN MILLIONS OF DOLLARS $1,400 $1,200 $1,000 $800 $600 $400 $200 Dec94 Dec 95 Dec-96 Dec-97 Dec 98 Dec 99 Dec00 Deco3 Deco4 Dec 0s Dec06 Dec-09 Dee-10 Dect Deco Dec-0: Dec-0i Dec-0f
Slide 19: Total Consolidated Deposits (2006-2012)
R HOLDINGS, INC. RG seated Total Consolidated Deposits (2006-2012) December 31, 2006 June 30, 2012 Total $875.5 MM Total $1,315.5 MM Non interest Bearing Demand $390.8 MM or 30% ‘Non interest Bearing Demand $124.2 MM or 14% ‘Interest Bearing $555.8 MM or 42% $334.0 MM or 38% soos $368.99 MM or 28% R
Slide 20: Loan Portfolio Composition
R HOLDINGS, INC. Loan Portfolio Composition June 30, 2012 IN MILLIONS OF DOLLARS TYPE Commercial & Industrial $ 3508 29% Non Owner Occupied Commercial Real Estate 340.7 28 Owner Occupied Commercial Real Estate 189.0 16 Residential Real Estate 1075 9 Direct Financing Leases 98.5 8 Installment and Oth
Slide 21: Key Differentiator: Correspondent Banking
Key Differentiator: Correspondent Banking + Uniquely positioned due to veteran Correspondent bankers on our team. + Competitively positioned with software, systems and processes. + Depth of product offerings: - Online Cash Man age Cash Letter System - Loan Participations - Bank Stock Financing - Saf
Slide 22: Key Differentiator: Wealth Management
Key Differentiator: Wealth Management + As of June 30, 2012: Approximately $1.1 Billion in Trust (and related) accounts and $535 Million in Brokerage (and related) accounts. + Competitively positioned due to our veteran team of Wealth Management professionals + Uniquely positioned with software, sys
Slide 23: Key Differentiator: SBA - USDA Lending
Key Differentiator: SBA - USDA Lending + SBA Lending in 2011: - Quad City Bank & Trust - 4th in the state of Iowa for Iowa banks (dollar volume) - Cedar Rapids Bank & Trust - Ist in the state of lowa for lowa banks (dollar volume) - Rockford Bank & Trust - 10th in the state of Illinois * USDA Lendin
Slide 24: Key Differentiator: m2 Lease Funds, LLC
Sd he Key Differentiator: m2 Lease Funds, LLC * 80% Ownership by Quad City Bank & Trust / 20% Ownership by CEO John Engelbrecht + Acquired August of 2005 Assets (in milions) Pre-Tax Eamings 2006 5530 $ 875651 2007 $687 $1421,442 2008 $797 $ 784,424 2008 $906 $955,679 2010 $854 $ 852741 2011 $988 $2,
Slide 25: Stock Trading History
Sd he Sea icine Stock Trading History $25.00 $20.00 vy. = $15.00 $10.00 $5.00 113108 e008 1130108 20108 290 “Trading Summary for GCRH - Sources: NASDAQ Orne, IDC Al infomation contained herein i obtained fom sources beteved to be ‘ezurle and rable, Ba because of the possbity of human and mechanical
Slide 26: Book Value of Common Stock Vs. Market Value
Book Value of Common Stock Vs. Market Value IN MILLIONS OF DOLLARS: Book Value Market Value e983
Slide 27: Questions
Tran, .Ou., QCR HOLDINGS, INC. Questions arelationship driven organization”
Slide 28: Appendix
Appendix
Slide 29: Our Mission
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 QCR HOLDING
Slide 30: Executive Management Team
nck... arelationship driv Executive Management Team DOUGLAS M. HULTQUIST, CPA President and Chief Executive Officer 36 Years in Banking/Financial Services TODD A. GIPPLE, CPA. Executive Vice President, Chief Operating Officer and Chief Financial Officer 27 Years in Banking/Financial Services JOHN H.
Slide 31: History of QCR Holdings, Inc.
a relationship drive History of QCR Holdings, Inc. 1993 Founded by Mike Bauer and Doug Hultquist 1994 Quad City Bank & Trust* — Currently $1.16 Billion in Assets 2001 Cedar Rapids Bank & Trust* — Currently $581 Million in Assets 2005 Rockford Bank & Trust* — Currently $301 Million in Assets 2005 Qua
Slide 32: Peer Analysis Q1 2012
Peer Analysis Q1 2012 = uty! TCE! Crm Leverage opi Capital Loans) URI Leune Tense NPAA/ vp, UR LY emcaney Instn Teter Assets os) 0) www) (reat autem ance soc 1800 eae 11 eso amo a paso ad ons ease tae Lila Franca open ween 2088 net a7 an 20 om ma MON 17 ear nas aT Fst nol Crain wir 20 138 om 3m 24 o
Slide 33: Peer Credit Analysis Graphs
wee Ho! IGS, INC. Peer Credit Analysis Graphs Non-Performing Assets / Assets INSTITUTION TICKER NPAs / ASSETS % Peer Group: Macatawa Bank Corparaton ose sox Wet Suburban Bancorp, ne wine 549 0 Mercato Bank Corpraton went sat ack Median ‘Great Souther Bancorp ne sec 380 CoB Finan ne coaz 302 [Entrise
Slide 34: Charge-Off Analysis
Charge-Off Analysis [Charge-ofAnaiysis ring Credit Cycle eon aut201 00) 123487000) 123487) 2007201208 $00) os (sd cay Bank an Tat Company 5082 art 20% er 2am eta Rap Bank ant Tt Cooary ‘08 8.38 208 pares 2% PROXY PEER GROUP: ‘tet Sub Bacon 12570 ‘ooeace an 2590 700% Fat euy Capea 475 330%, a0 no {nt
Slide 35: QCR Holdings, Inc. Peer Credit Quality
QCR Holdings, Inc. Peer Credit Quality NCOs / Average Loans Provision Expense / NCOs 200 —SacrH Medan Hace Median 150 1.00 oso 0.00 som scree ‘Soure: SNL Financ O34!12
Slide 36: Consolidated Securities Portfolio
wee Ho! IGS, INC. QCR Holdings, ine Consolidated Securities Portfolio apshot —As of 12.31.11 of 12.34.41 Pr Value (0005) 851617 ‘Book Vue (0005) sss.at0 Bock Vaue Total Gainoss_— Book Yield Replice Term basin reer Agency Fed) aa502 77% «aT 208 rr Uareatand Gains @ore) cae Mo (Foes) 52854 om 1315 2ar