Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (December 2017)
40 slides from Qcr's investor presentation, Dec 20, 2017
Slide 1: QCR Holdings, Inc. December 2017
CR HOLDINGS, INC. December 2017
Slide 2: Slide 2
Slide 3: Forward-Looking Statements
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,
Slide 4: Forward-Looking Statements - Continued
FORWARD-LOOKING STATEMENTS - Continued (jx) 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 o
Slide 5: 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 6: Corporate Overview
CORPORATE OVERVIEW QCR Holdings, Inc NASDAQ - QCRH Russell 2000? Index Member 2s of June 30, 2015 $3.8 BILLION IN ASSETS * $2.9 BILLION IN LOANS * $3.1 BILLION IN DEPOSITS * 26 FACILITIES ** © Quad City Bank & Trust (5) © Cedar Rapids Bank & Trust (5) @ Rockford Bank & Trust (2) @ m2 Lease Funds LLC
Slide 7: History of QCR Holdings, Inc.
HISTORY OF QCR HOLDINGS, INC. 1993 = QGR Holdings founded by Mike Bauer and Doug Hultquist - $14 Million IPO - Quad City Bank & Trust (De Novo) — Currently $1.46 Bi - Cedar Rapids Bank & Trust (De Novo) - Currently $1.26 Billion” in Assets (includes Community Bank & Trust branches) - Rockford Bank &
Slide 8: Investment Rationale
INVESTMENT RATIONALE + $3.8B asset bank holding company with critical mass in attractive and target rich markets in lowa and Illinois = Top 2 bank with 14% market share in the Quad Cities, lowa/lllinois and Top 2 in Cedar Rapids”, lowa with 15% share = Quad Cities is the International Headquarters f
Slide 9: Unique Products and Services
UNIQUE PRODUCTS AND SERVICES CORRESPONDENT BANKING WEALTH MANAGEMENT + Competitively positioned with veteran staff, software, systems and + $2.4B in Trust (and related) accounts and $956MM in Brokerage processes (and related) accounts as of 9/30/17 + More than 183 relationships to date with $272 mil
Slide 10: QCR Holdings, Inc. - Market Overview
QCR HOLDINGS, INC. - MARKET OVERVIEW + 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 ‘Markot Rank $18,000 $12,000 $6,000 Deposit Market Share Overview ($M) = $7,274 as = an = . OCR Ho
Slide 11: Capitalizing on Opportunities in Our Market
“CAPITALIZING” ON OPPORTUNITIES INOUR MARKET + Leverage capital strength and relationship driven approach to capture greater organic market and relationship share geted Markets (1) Selectively pursue accretive acquisition opportunities + Operating markets are highly fragmented: ad - 877 community ba
Slide 12: Top MSAs - Iowa, Illinois, Wisconsin
TOP 25 MSAS - lowa, Illinois, Wisconsin Projected Median Projected Numberot Number of ‘otal Population Household Median HAL institutions "Branches Population Growth income ‘Growth (Cheago Naperile- Eg, ILIN-AT $304.64 188 209 804.650 008% soaont Minneapote- St. Pau Bloomington, MN-WA 199316 154 780
Slide 13: Financial Highlights
HOLDINGS, INC. a relationship driven organization” Financial Highlights
Slide 14: Total Consolidated Assets, CAGR 1994-2016
CAGR From 1994-2016: 22.36% TOTAL CONSOLIDATED ASSETS ix das 91290 sta #1980 €1290 2200 11394 01220 6020 90290 10290 90290 02a 40290 £0290 20200 10294 008 66290 96290 16290 96220 $6280 6220, $4,000 $3,000 $2,000 $1,000 $0 2 relationship criven organization ® ‘Source: Company cocomets ola nmin. “Ices
Slide 15: Income Statement Results & Key Earnings Metrics
INCOME STATEMENT RESULTS & KEY EARNINGS METRICS Reported Reported Reported Reported «Coe = Repoted © Cre Y-T-D Core RAyR RAV RAvM LAs RAIS ways Aye — 9A0A7 Net Income Available to $9.1 $118 $13.9 $16.9 $209 $27.7 $29.4 $26.4 ‘Common NIM (%)(TEY)(Non-GAAP) 3.14% —-2,03% © «3.15% «37% «3.37% BTS «TSK
Slide 16: Strong Commercial Loan Growth
STRONG COMMERCIAL LOAN GROWTH in Growth Trend (") $3,000 + 35% organic loan growth from 2013 to 2016 (excludes Community State Bank) + Commercial lending® represents more than 87% of the portfolio $2,000 + 2013 loan growth supplemented by 7 acquisition of Community National pt Bancorporation-Waterlo
Slide 17: m2 Lease Funds LLC Overview
m2 LEASE FUNDS LLC OVERVIEW + National equipment leasing platform + Focus includes commercial equipment! building and construction machinery and ad assets, medical equipment, office ou 8 equipment (computer hardware and oe software), and vehicles classified as heavy equipment ‘$150 + High yield port
Slide 18: Asset Quality Overview
ASSET QUALITY OVERVIEW Management continues to focus on maintaining excellent asset quality and resolving problem assets. Classified Loans ($M) & $70 2.08% $60 141% $0 _ 128% 359 $40 : Ll $20 poll 2012 2013-2014 clastied Loans ($M) ‘Source: Company documents, Olas in milion. NPAs / Assets say 095% 0
Slide 19: Evolution of Funding Base
EVOLUTION OF FUNDING BASE Average Funding Base - 2 Average Funding Base - 2017 Q3 Borrowings 334% borrowings 8.5% sm vonintareet Basing sm onintees Bearing Deport 13.7% Deports23.4% $1,684M $3,151M Interest Bearing Demand Interest Bearing emand Deport 25.3% Deporte 512% ‘Time Deposits 27.6% ‘Time De
Slide 20: Attractive Revenue Mix & Growth Trend
ATTRACTIVE REVENUE MIX & GROWTH TREND Continued Strong Top Line Revenue Growth Trends ($M) CAGR From 2010 - 2016: 11.03% Strong fee income streams provide stability and complement to spread revenue $150 $125 Key Differentiators: 100 + Wealth Management (83.48 in AUM as of 90/17) $75 + Correspondent
Slide 21: Improving Returns for Common Shareholders
IMPROVING RETURNS FOR COMMON SHAREHOLDERS Net Income to Common Shareholders ($M) Approximately ~44.48% Net Income to Common CAGR From 2011 ~ 2016 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $0.0 2011 2012 2013 2014 2016 ee
Slide 22: Strategies to Continue to Drive Shareholder Value
STRATEGIES TO CONTINUE TO DRIVE SHAREHOLDER VALUE * Continue strong organic loan and lease growth to maintain loans and leases to total assets ratio in the range of 73-78% (75% as of 9/30/17) + Continued focus on growing core deposits to maintain reliance on wholesale funding to less than 15% of ass
Slide 23: Summary of Competitive Advantages
SUMMARY OF COMPETITIVE ADVANTAGES @ Critical mass in attractive and target rich markets in lowa and Illinois @ 4 charter model allows subsidiary banks to customize solutions by market @ Differentiated product offering includes correspondent banking, wealth management, leasing and SBA/USDA lending w
Slide 24: QCR Holdings, Inc.
HOLDINGS, INC. a relationship driven organization”
Slide 25: Executive Management Team
EXECUTIVE MANAGEMENT TEAM DOUGLAS M, HULTQUIST, CPA President and Chief Executive Offcer 40 Years in Banking /Financial Services TODD A. GIPPLE, CPA Executive Vice President, Chief Operating Officer and Chief Financial Offcer 532 Years in Banking / Financial Services JOHN H. ANDERSON President and C
Slide 26: The Strategic Value of Our Separate Charters
THE STRATEGIC VALUE OF OUR SEPARATE CHARTERS + 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
Slide 27: Quad City Bank & Trust
QUAD CITY BANK & TRUST Quad Cities Highlights “The Rock island Arsenal isthe largest. ‘manufacturing arsenal in the United St snment-owned miltary weapons nt & CEO International Headquarters for Deere & Company Davenport Ranked 2% with 14.22% market share and over $1,205 Millon in nn) Sopostsin Dave
Slide 28: Cedar Rapids Bank & Trust
CEDAR RAPIDS BANK & TRUST Larry J. Helling, President & CEO Assets: $1.26 Billion” (as of 10/1/17) in: 270, Population: Market Deposits: $5.8 Billion Raed 2% wih 15.10% maa sae ae ovr $78 ion in deposits in Cedar Rapids £2015 Finals - Coolest Place to Wo Rapids 2014, "op 3-2016 Con Buon Ithiest Bank
Slide 29: Rockford Bank & Trust
ROCKFORD BANK & TRUST Thomas D. Budd, President & CEO Assets: $445 Million (as of 730/17) Population: 337,006 Rockford Highlights ‘open in 2018 [AAR (largest aircraft maintenance company in North America, and thir largest inthe worl) opened ‘anew S41NIM facility at Chicago Recktord Airport generatin
Slide 30: Community Bank & Trust
COMMUNITY BANK & TRUST BANK@ Re TRUST tacey J. Bentley, President & CEO : $124 Million (as of 9/30/17) ed 11 with 3.6% ma ‘deposits in Wateroo-Cadar Falls 2016 Employer Choice Aus ier Communications passa Sabevere toe ‘henon Fancacan esinens TreVeM Grow ‘Tyson Fresh Meat Allen Memorial H ‘ost ! Univ
Slide 31: Community State Bank
COMMUNITY STATE BANK state bank Ronald M. Nagel, CEO Kurt A. Gibson, President Assets: $632 Population: 651,599 Des Moines MSA Market Deposits: $17.6 Billion Ranked 8" with 3.16% market share and over $554.8 Mlion in deposits in Des Moines ~ West Des Moines MSA 2017 Voted Best Bank in Ankeny (Des Mo
Slide 32: Group Operations
Group Operations + Accounting and Treasury — Beth Grabin and John Oakes + Customer Service/Item Processing — Kathy Francque + Deposit Operations — Beth Easterla and John Rodriguez + Funds Management — John McEvoy + Human Resources — Anne Howard and Shellee Showalter + Information Technology — Michae
Slide 33: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share esr ended Orcember 3, (5 inthousands, except ner shore dota) rou 202 2013 20 201s 2016 sl “Tangible Common Equity ‘Total equity S aass -$ — Moase «$4757 $—sago7s«$ | 2aS8B6 $= eH Ss 813,039 Less: Pre
Slide 34: Deposit Market Share - Quad City Bank & Trust
Deposit Market Share - Quad City Bank & Trust Institution Name MSA Market Share 1. Wells Fargo Bank 15 $ 1,361.5 16.06 % 2. Quad City Bank & Trust 5 1,205.5 14.22% 3. Blackhawk Bank & Trust 7 946.5 11.16 % 4. U.S. Bank " 829.3 9.78% 5. Triumph 10 585.2 6.90 % 6. BankOrion 8 373.0 4.40% 7. First Midw
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 $907.1 15.60 % 2. Cedar Rapids Bank & Trust ** 5 878.0 18.10 % 3. Wells Fargo Bank 10 665.7 11.45 % 4. Farmers State Bank 8 602.8 10.37 % 5. Hills Bank & Trust 7 401.7 6.91 % 6. Ba
Slide 36: Deposit Market Share - Rockford Bank & Trust
Deposit Market Share - Rockford Bank & Trust Institution Name Deposits* 1. Alpine Bank & Trust 18 $1,116.3 18.90 % 2. JP Morgan Chase 6 686.3 11.62 % 3. Associated Bank 6 600.0 10.15 % 4. BMO Harris 10 574.7 9.73% 5. Illinois Bank & Trust 4 406.8 6.89% 6. Blackhawk Bank 5 3769 6.38 % 7. Rockford Ban
Slide 37: Deposit Market Share - Community Bank & Trust
Deposit Market Share - Community Bank & Trust Institution Name Offices in MSA Deposits’ Market Share 1. Farmers State Bank 8 $644.8 18.79 % 2. U.S. Bank 6 391.1 11.40 % 3. Lincoln Savings Bank 5 334.9 9.76 % 4. First National Bank 6 306.6 8.94 % 5. Wells Fargo Bank 4 2319 6.76 % 6. GNB Bank 3 193.2
Slide 38: Deposit Market Share - Community State Bank
Deposit Market Share - Community State Bank Institution Name MSA Deposits* Market Share 1. Wells Fargo Bank 19 $3,116.3 17.75 % 2. Bankers Trust 19 2,492.6 14.19 % 3. West Bank 8 1,311.5 TAT % 4. U.S. Bank 15 1,098.3 6.25 % 5. Bank of America 4 917.6 5.23 % 6. Great Western Bank 8 900.7 5.13% 7. Ban
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Slide 40: QCR Holdings, Inc.
INC. HOLDINGS, 3551 7" Street Moline, Illinois 61265,