Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (May 2017)
40 slides from Qcr's investor presentation, May 16, 2017
Slide 1: QCR Holdings, Inc. April 2017
QCR HOLDINGS, INC. APRIL 2017
Slide 2: Slide 2
Slide 3: 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 condition, results of operations, a
Slide 4: 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 risks of mergers, acquisitions and divestiture
Slide 5: Non-GAAP financial measures notice
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 adjustments that have the e
Slide 6: Corporate Overview
6 a relationship driven organization. ® CORPORATE OVERVIEW QCR Holdings, Inc. - Founded in 1993 Headquartered in Moline, IL Source: Company documents and SNL Financial. Financial data as 3/31/17. Ownership data as of 12/31/16. NASDAQ – QCRH Russell 2000 ® Index Member as of June 30, 2015 $3.4 BILLIO
Slide 7: Investment Rationale
INVESTMENT RATIONALE 7 • $3.4B asset bank holding company with critical mass in attractive and target rich markets in Iowa and Illinois - Top 2 bank with 13% market share in the Quad Cities, Iowa/Illinois and Top 4 in Cedar Rapids, Iowa with 10% share - Quad Cities is the International Headquarters
Slide 8: Unique Products and Services
UNIQUE PRODUCTS AND SERVICES 8 CORRESPONDENT BANKING • Competitively positioned with veteran staff, software, systems and processes • More than 183 relationships to date with $321 million in average non - interest bearing deposits and $109 million in average interest - bearing deposits at 3/31/17 •
Slide 9: QCR Holdings, Inc. - Market Overview
9 QCR HOLDINGS, INC. - MARKET OVERVIEW Source: SNL Financial. Deposit data as of June 30, 2016. Dollars in millions. • Meaningful market share position in each MSA served, with room for continued growth • Each MSA falls within the top 15 largest MSAs in IL and IA by total deposits Deposit Market Sha
Slide 10: Capitalizing on Opportunities in Our Market
10 “CAPITALIZING” ON OPPORTUNITIES IN OUR MARKET Distribution of Institutions in Targeted Markets (1) Source: SNL Financial. (1) Target area includes top 25 MSAs listed in the Appendix to this presentation excluding Chicago, St. Louis and Omaha MSAs. Southern Wisconsin (defined as Milwaukee MSA and
Slide 11: Top MSAs / Iowa and Illinois
TOP 25 MSAS / IOWA AND ILLINOIS 11 a relationship driven organization. ® Source: SNL Financial. Deposit data as of June 30, 2016. Growth CAGR figures based on 2016 - 2022 projected figures. MSA Deposits ($M) Number of Institutions Number of Branches T otal Population Projected Population Growt h Med
Slide 12: Financial Highlights
QCR HOLDINGS, INC. Financial Highlights
Slide 13: Total Consolidated Assets
$4,000 $3,000 $2,000 $1,000 $0 De c 94 De c 95 De c 96 De c 97 De c 98 De c 99 De c 00 De c 01 De c 02 De c 03 De c 04 De c 05 De c 06 De c 07 De c 08 De c 09 De c 10 De c 11 De c 12 De c 13 De c 14 De c 15 De c 16 Mar 17 TOTAL CONSOLIDATED ASSETS CAGR From 1994 - 2016: 22.36% Source: Company docume
Slide 14: Income Statement Results & Key Earnings Metrics
INCOME STATEMENT RESULTS & KEY EARNINGS METRICS C ommo n 14 a relationship driven organization. ® (Non - GAAP) Reported Reported Reported Reported Core Reported Core Reported 12/31/12 12/31/13 12/31/14 12/31/15 12/31/15 12/31/16 12/31/16 3/31/17 Net Income Available to $9.1 $11.8 $13.9 $16.9 $20.9 $
Slide 15: Strong Commercial Loan Growth
15 Loan Growth Trend (1) STRONG COMMERCIAL LOAN GROWTH Source: Company documents. Dollars in millions. (1) Loan composition excludes deferred loan/lease origination costs, net of fees. (2) Includes Commercial & Industrial, Commercial RE and Direct Financing Leases. • 35% organic loan growth from 201
Slide 16: m2 Lease Funds LLC Overview
Lease Asset Generation m2 LEASE FUNDS LLC OVERVIEW Source: Company documents. Dollars in millions. • National equipment leasing platform • Focus includes commercial equipment/ building and construction machinery and assets, medical equipment, office equipment (computer hardware and software), and ve
Slide 17: Asset Quality Overview
21 .65% 52 .03% 22 .82% 3 .50% Other Real Estate Owned & Rep. Assets - 21.65% Nonaccrual Loans/Leases - 52.03% Troubled Debt Restructures - Accruing - 22.82% Accruing Loans/Leases 90+ Days PD - 3.50% Source: Company documents. Dollars in millions. ASSET QUALITY OVERVIEW Management continues to focus
Slide 18: Evolution of Funding Base
Average Funding Base - 2010 EVOLUTION OF FUNDING BASE Source: Company documents. Dollars in millions. Average Funding Base – 2017 Q1 2010 Cost of Funds: 1.79% 2010 Cost of Deposits: 1.13% 33 .4% 13 .7% 25 .3% 27 .6% Borrowings 33.4% Noninterest Bearing Deposits 13.7% Interest Bearing Demand Deposits
Slide 19: Attractive Revenue Mix & Growth Trend
Continued Strong Top Line Revenue Growth Trends ($M) ATTRACTIVE REVENUE MIX & GROWTH TREND Strong fee income streams provide stability and complement to spread revenue Key Differentiators: • Wealth Management ($ 2.9 B in AUM) • Correspondent banking (183 relationships) • SBA / USDA guaranteed loan s
Slide 20: Improving Returns for Common Shareholders
Net Income to Common Shareholders ($M) IMPROVING RETURNS FOR COMMON SHAREHOLDERS Source: Company documents. Dollars in millions. Approximately ~44.48% Net Income to Common CAGR From 2011 – 2016 $4.4 $9.1 $11.8 $13.9 $16.9 $27 .7 $0 .0 $5 .0 $10 .0 $15 .0 $20 .0 $25 .0 $30 .0 2011 2012 2013 2014 2015
Slide 21: Strategies to Continue to Drive Shareholder Value
STRATEGIES TO CONTINUE TO DRIVE SHAREHOLDER VALUE 21 a relationship driven organization. ® • Continue strong organic loan and lease growth to maintain loans and leases to total assets ratio in the range of 70 - 75% (72% as of 3/31/17) • Continued focus on growing core deposits to maintain reliance o
Slide 22: Concluding Remarks
CONCLUDING REMARKS 22 a relationship driven organization. ® • Critical mass in attractive and target rich markets in Iowa and Illinois • 4 charter model allows subsidiary banks to customize solutions by market • Differentiated product offering includes correspondent banking, wealth management, leasi
Slide 23: Appendix
QCR HOLDINGS, INC. Appendix
Slide 24: History of QCR Holdings, Inc.
HISTORY OF QCR HOLDINGS, INC. 24 a relationship driven organization. ® 1993 - Founded by Mike Bauer and Doug Hultquist - $14 Million IPO 1994 - Quad City Bank & Trust (De Novo) – Currently $1.44 Billion in Assets 1995 - Quad City Bancard Formed 2001 - Cedar Rapids Bank & Trust (De Novo) – Currently
Slide 25: Executive Management Team
25 a relationship driven organization. ® EXECUTIVE MANAGEMENT TEAM DANA L. NICHOLS Executive Vice President, Chief Credit Officer, 34 Years in Banking / Financial Services JOHN R. OAKES, CPA 1st Vice President, Treasurer 15 Years in Banking / Financial Ser vices JOHN A. RODRIGUEZ, CCM Executive Vice
Slide 26: The Strategic Value of Our Separate Charters
26 • 4 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 • 4 charters supported by QCRH Group Operations team that delivers o
Slide 27: Quad City Bank & Trust
27 QUAD CITY BANK & TRUST John H. Anderson, President & CEO Assets: $1.44 Billion (as of 3/31/17 ) Population: 383,950 Market Deposits: $8.0 Billion Ranked 2 nd with 13.1% market share and over $1,049 Million in deposits in Davenport - Moline - Rock Island MSA Finalist 2013 and 2014 – Quad Cities Be
Slide 28: Cedar Rapids Bank & Trust
CEDAR RAPIDS BANK & TRUST Larry J. Helling, President & CEO Assets: $929 Million* (as of 3/31/17 ) Population: 268,537 Market Deposits: $5.5 Billion Top 4 bank with 10.23% market share and over $566 million in deposits in Cedar Rapids MSA 2014 & 2015 Finalist – Coolest Place to Work in Cedar Rapids
Slide 29: Rockford Bank & Trust
ROCKFORD BANK & TRUST Thomas D. Budd, President & CEO Assets: $398 Million (as of 3/31/17 ) Population: 338,034 Market Deposits: $5.8 Billion Ranked 8 th with 5.1% market share and over $297 Million in deposits in Rockford MSA Major Employers Rockford Public School District Swedish American Health S
Slide 30: Community Bank & Trust
COMMUNITY BANK & TRUST Stacey J. Bentley, President & CEO Deposits: $128 Million (as of 3/31/17 ) Population: 171,484 Market Deposits: $3.3 Billion Ranked 10 th with 3.8% market share and over $125 Million in deposits in Waterloo - Cedar Falls MSA 2016 Employer Choice Award – Courier Communications
Slide 31: Community State Bank
COMMUNITY STATE BANK Ronald M. Nagel, President & CEO Assets: $608 Million (as of 3/31/17 ) Population: 639,120 Des Moines MSA Market Deposits: $16.7 Billion Ranked 8 th with 3.30% market share and over $481.4 Million in deposits in Des Moines – West Des Moines MSA 2017 Voted Best Bank in Ankeny (De
Slide 32: Group Operations
Group Operations 32 a relationship driven organization. ® • Accounting and Treasury – Beth Grabin and John Oakes • Compliance – Peggy Bishop • Customer Service/Item Processing – Kathy Francque • Deposit Operations – Beth Easterla and John Rodriguez • Funds Management – John McEvoy • Human Resources
Slide 33: Non-GAAP Reconciliations
Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share 33 a relationship driven organization. ® NON - GAAP RECONCILIATIONS As of and for the Year ended December 31, ($ in thousands, except per share data) Tangible Common Equity Total equity Less: Preferred Equity Less: Noncontro
Slide 34: Deposit Market Share - Quad City Bank & Trust
Deposit Market Share - Quad City Bank & Trust Institution Name Offices in MSA Deposits* Market Share 1. Wells Fargo Bank 16 $ 1,112.3 13.93 % 2. Quad City Bank & Trust 5 1,049.0 13.14 % 3. Blackhawk Bank & Trust 19 966.7 12.11 % 4. U.S. Bank 11 760.1 9.52 % 5. Triumph 10 545.4 6.83 % 6. First Midwes
Slide 35: Deposit Market Share - Cedar Rapids Bank & Trust
Deposit Market Share - Cedar Rapids Bank & Trust Institution Name Offices in MSA Deposits* Market Share 1. U.S. Bank 10 $ 933.7 16.87 % 2. Wells Fargo Bank 11 601.3 10.87 % 3. Farmers State Bank 8 586.2 10.59 % 4. Cedar Rapids Bank & Trust 2 565.9 10.23 % 5. Hills Bank & Trust 6 369.8 6.68 % 6. Bank
Slide 36: Deposit Market Share - Rockford Bank & Trust
Deposit Market Share - Rockford Bank & Trust * Millions of dollars, as of 6/30/16 36 a relationship driven organization. ® Institution Name Offices in MSA Deposits* Market Share 1. Alpine Bank & Trust 17 $ 1,080.4 18.48 % 2. BMO Harris 10 723.7 12.38 % 3. JP Morgan Chase 7 639.8 10.94 % 4. Associate
Slide 37: Deposit Market Share - Community Bank & Trust
Deposit Market Share - Community Bank & Trust * Millions of dollars, as of 6/30/16 37 a relationship driven organization. ® Institution Name Offices in MSA Deposits* Market Share 1. Farmers State Bank 8 $ 587.9 17.56 % 2. U.S. Bank 6 365.7 11.09 % 3. Lincoln Savings Bank 5 308.7 9.36 % 4. Wells Farg
Slide 38: Deposit Market Share - Community State Bank
Deposit Market Share - Community State Bank * Millions of dollars, as of 6/30/16 38 a relationship driven organization. ® Institution Name Offices in MSA Deposits* Market Share 1. Wells Fargo Bank 19 $ 3,117.0 21.39 % 2. Bankers Trust 19 2,292.2 15.73 % 3. West Bank 8 1,254.9 8.61 % 4. U.S. Bank 15
Slide 39: Slide 39
Slide 40: Moline, Illinois - www.qcrh.com
3551 7 th Street Moline, Illinois 61265 www.qcrh.com