Qcr Holdings, Inc. · NASDAQ:QCRH

Qcr — Investor Presentation (February 2021)

37 slides from Qcr's investor presentation, Feb 1, 2021

1. Slide 1: Investor Presentation Updated February 1, 2021

   Investor Presentation Updated February 1, 2021

2. Slide 2: Forward-Looking Statements

   FORWARD - LOOKING STATEMENTS This document contains, and future oral and written statements of QCR Holdings, Inc. (the “Company”) and its management may contain, forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial cond

3. Slide 3: QCR Holdings, Inc. Overview

   • Local charters provide a competitive advantage • Strong, centralized risk management function • Efficient centralized group operations • Strong credit and asset quality • Consistent adjusted net income growth • High - touch service approach • Serving attractive Midwest markets • Significant expans

4. Slide 4: QCRH operates four locally managed and governed charters

   QCRH operates four locally managed and governed charters, supported by a centralized operations team. Lines of Business: ▪ Full - service commercial and consumer banking ▪ Correspondent banking ▪ Commercial lease financing ▪ Trust and wealth management services Assets: $5.7 Billion Loans: $4.3 Billi

5. Slide 5: Seasoned Senior Leadership

   5 Todd A. Gipple President, Chief Operating Officer & Chief Financial Officer ▪ Over 30 years of commercial banking and financial accounting experience ▪ Joined QCR Holdings in 2000 ▪ QCR Holdings Board Director since 2009 ▪ Appointed Chief Financial Officer in 2000 ▪ Appointed Chief Operating Offic

6. Slide 6: Our Mission, Vision and Values

   WHO WE ARE Our Values PASSION | We care. ACHIEVEMENT | We expect to win. ACCOUNTABILITY | We drive it. COLLABORATION | We work together. INNOVATION | We embrace change. INCLUSION | We respect all. Our Vision Exceptional people providing extraordinary performance for our clients, shareholders and com

7. Slide 7: The Value of Separate Charters

   The Value of Separate Charters Source: FDIC deposit market share data a provided by S&P Global (as of 6/30/19). Managed and governed by local veteran bankers and boards with strong community ties and expertise • High touch service delivered by knowledgeable professionals • Strong community involveme

8. Slide 8: Our History of Growth

   8 1993 QCR H o ldings F o unded $14 million IPO 1994 Quad City Bank & Trust (De Novo) 2001 Cedar Rapids Bank & Trust (De Novo) 2005 Rockford Bank & Trust (De Novo) & Quad City Bank & Trust acquires m2 Lease Funds, LLC 2013 C o mm uni t y National Bank acquisition 2016 C o mm uni t y State Bank acqui

9. Slide 9: Our Entities at a Glance

   9 G R O W T H Our Entities at a Glance Entity States/ R e g i on # Locations Deposits Market Share I o w a /I lli no i s Quad Cities 5 $1.9B #1 Iowa Cedar Rapids 5 $1.2B #1 Iowa Cedar Valley 3 $0.2B #7 Iowa Des Moines/ Ankeny 9 $0.9B #7 Missouri S p r i ng f i e l d 1 $0.6B #7

10. Slide 10: Strong Market Share in Attractive MSAs

    Strong Market Share in Attractive MSAs * MSAs include Davenport - Moline - Rock Island, IA - IL, Cedar Rapids, IA, Rockford - IL, Waterloo - Cedar Falls - IA, Des Moines/West Des Moines - IA, and Springfield, MO. All banks reflect Pro Forma Data from acquisitions. ** Pro Forma based on Rockford Bank

11. Slide 11: Unique and Diversified Products and Services

    11 Unique and Diversified Products and Services • Trust administration • Brokerage accounts and asset management • Financial planning • 12/31/20 AUM: $4.4B • Competitive deposit products • Safekeeping and cash management services • 192 correspondent banking relationships • Bank stock loans • Commerc

12. Slide 12: Environmental, Social and Governance

    COMMITMENT Environmental, Social and Governance We are very proud of the communities we serve. Our employees demonstrate their commitment to our communities through volunteerism and philanthropy. At a Glance • 13,000 Volunteer Hours in 2020 • Diversity, Equity and Inclusion policy; focus on inclusio

13. Slide 13: Our Strategy for Long-Term Success

    Our Strategy for Long - Term Success In 2020, we set a simple and focused strategy for our future. 9 - 6 - 5 is our plan to continue to grow earnings and drive attractive long - term returns for our shareholders. 9 – Grow loans by 9% per year, funded with core deposits 6 – Grow fee income no less th

14. Slide 14: Financial Highlights

    Financial Highlights QCR HOLDINGS, INC.

15. Slide 15: A Consistent Track Record of Asset Growth

    ASSET GROWTH 15 $2 . 2 $2 . 2 $2 . 9 $3 . 5 $4 . 4 $4 . 9 $5 . 7 62 . 6% 67 . 6% 71 . 9% 73 . 8% 75 . 0% 75 . 2% 74 . 8% 2014 2015 2016 2020 Total Assets 2017 2018 2019 Total Loans & Leases/Total Assets A Consistent Track Record of Asset Growth Asset growth has been driven by a combination of organi

16. Slide 16: Deposit Growth Driven by Core Deposits

    32% 34% 31% 25% 20% 20% 25% 47% 48% 52% 60% 57% 62% 65% 17% 15% 15% 13% 16% 16% 4% 2% 2% 7% 4% $1 . 6 3% $1 . 4 $2 . 4 $2 . 9 $3 . 5 $3 . 9 $4.6 10% 20 1 4 20 1 5 20 1 6 Noninterest - bearing Deposits 20 1 7 20 1 8 20 1 9 20 2 0 Interest - bearing Deposits Time Deposits Brokered Deposits Deposit Gro

17. Slide 17: Loan Growth Driven by Commercial Lending

    $0 . 4 $0 . 5 $0 . 7 $1 . 0 $1 . 3 $1 . 5 $1 . 7 $0 . 6 $0 . 6 $0 . 9 $1 . 1 $1 . 6 $1 . 8 $2 . 1 $0 . 2 $0 . 2 $0 . 2 $0 . 2 $0 . 1 $0 . 1 $0 . 2 $0 . 2 $0 . 2 $0 . 1 $0 . 2 $0 . 1 $0 . 2 $0 . 1 $0 . 1 $0 . 1 $0 . 1 $0 . 1 $0 . 1 $2. 1 $0.1 $1. 4 $1. 5 $2. 6 $3. 3 $3. 7 $4. 3 $0.1 20 1 4 2015 Comme

18. Slide 18: Strong Pre-Provision, Pre-Tax Earnings

    18 Strong Pre - Provision, Pre - Tax Earnings EARNINGS $46 $42 $64 $78 $132 $29 $20 $20 $0 $40 $60 $80 $100 $120 $140 2014 2015 2019 2020 2016 2017 2018 Pre - Provision, Pre - Tax Earnings (in Millions) Rockford Bank & Trust data excluded.

19. Slide 19: Strong Capital Position

    19 CAPITAL POSITION Strong Capital Position 5.52% 8.56% 8.14% 8.01% 8.13% 9.25% 9.40% 10 . 91% 13 . 91% 11 . 56% 11 . 15% 12 . 50% 13 . 33% 15 . 13% 4.00% 6.00% 8.00% 10 . 00% 12 . 00% 14 . 00% 16 . 00% 2014 2015 201 6 2017 2018 2019 QCRH is well - positioned for long - term success for several reas

20. Slide 20: Asset Quality

    ASSET QUALITY 20 94.0% 1.0% 5.0% 0 . 0% Nonaccrual Loans/Leases Other Real Estate Owned & Repossessed Assets Accruing Loans/Leases past due 90 days or more Troubled Debt Restructures – Accruing Asset Quality Management remains focused on maintaining excellent asset quality and resolving problem asse

21. Slide 21: Strong Credit Culture Supported by High Levels of Reserves

    223% 145% 184% 404% 575% 193% 180% 183% 215% 214% 194% 347% 201 8 201 9 202 0 201 5 2016 Proxy Peers 2017 Q C RH 2018 2019 2020 Proxy Peers 1 . 45% 1 . 28% 1 . 16% 1 . 07% 1 . 98% 1 . 20% 1 . 08% 1 . 04% 1.03% 0.98% 0 . 95% 1 . 53% 2015 2016 2017 QCRH (1) Proxy peer group is identified in the QCRH P

22. Slide 22: Strong Revenue Growth and Attractive Mix

    77% 75% 75% 79% 77% 66% 59% 23% 25% 25% 21% 23% 34% 41% $77 $87 $110 $130 $167 $234 2014 2015 2019 2020 2016 2017 2018 Net Interest Income Noninterest Income Strong Revenue Growth and Attractive Mix Predictable and diversified fee income streams complement net interest income $ in millions $281 Key

23. Slide 23: Consistent Improvement in Shareholder Returns

    $14 $21 $29 $36 $46 $59 $63 $2.66 $3.08 $3.66 $3.96 $2.31 $1.99 $1.72 $0 2014 2015 2016 2017 2018 2019 2020 Consistent Improvement in Shareholder Returns 0.61% 0.82% 1.03% 1.03% 1.06% 1.15% 1.08% 2014 2015 2016 2017 2018 2019 2020 Return on Average Assets 72.5% 72.8% 64.9% 66.5% 64.8% 66.2% 54.1% 20

24. Slide 24: COVID-19 Exposure

    COVID-19 EXPOSURE Q4 2020 HOLDINGS, INC.

25. Slide 25: PPP & LRP Participation

    PPP & LRP Participation

26. Slide 26: Client Participation in the Paycheck Protection Program (PPP)

    In 2020, QCRH originated 1,698 PPP loans with a total of $358MM. • As of Dec. 31, 2020, 316 of these loans, totaling $85MM were paid off. This total includes the acquisition of new, highly desired clients in our existing markets: • Number of new client loans: 309 (18% of total PPP loans) • Total of

27. Slide 27: QCRH Loan Relief Program (LRP)

    The QCRH LRP offers immediate payment relief to consumer and small business loan clients. • As of Dec. 31, 2020, there were $28MM or 0.66% of total loans and leases still on deferral. • This is down from $83MM or 1.98% of total loans and leases on deferral, as of Sept. 30, 2020. Loan Relief Program

28. Slide 28: Bank Loan Relief Program (LRP) by Industry

    LOAN RELIEF Bank Loan Relief Program (LRP) by Industry A breakdown of the industries for deferrals: 28 Industry Deferrals as of Sept. 30, 2020 Deferrals as of Dec. 31, 2020 Total Amount (in millions) % of Total Lo a ns /L e a s es Total Amount (in millions) % of Total Lo a ns /L e a s es % of Loans

29. Slide 29: Trends in Criticized and Classified Loan Totals

    Trends in Criticized and Classified Loan Totals ASSET QUALITY 29 Category Total Amount (in millions) 12 / 31 / 20 9 / 30 / 20 6 / 30 / 20 3 / 31 / 20 12 / 31 / 19 Special Mention (Rating 6) $72 $80 $104 $35 $20 Substandard (Rating 7) $66 $70 $40 $36 $34 Doubtful (Rating 8) $0 $0 $0 $0 $0 TOTAL $138

30. Slide 30: Industry Concentration Disclosures

    Industry Concentration Disclosures

31. Slide 31: Primary Industry Concentration Overview

    P R I M A R Y The following industries were deemed higher risk in our commercial loan portfolio due to the COVID - 19 pandemic. As of Dec. 31: Industry A m o unt % of Total Loans Hotels $84 M M 1 . 98% Restaurants $36 M M 0 . 85% Arts, Entertainment and Recreation $27 M M 0 . 63% Aviation $0 M M 0 .

32. Slide 32: Secondary Industry Concentration | Retail

    SE C O ND A R Y Secondary Industry Concentration | Retail As of Dec. 31, QCRH retail exposure was $213MM, or 5.01% of total loans. Overview in Our Markets • Grocery - related sales continue to grow. • Automotive/truck sales in our markets remain strong and better than the national average, which rep

33. Slide 33: Appendix

    APPENDIX HOLDINGS, INC.

34. Slide 34: Quad City Bank & Trust Deposit Market Share

    QUAD CITY BANK & TRUST John H. Anderson, CEO Laura “Divot” Ekizian, President Assets: $2.1 Billion 1 (as of 12/31/20) Population: 382,268 Market Deposits: $8.2 Billion (1) Includes $241.5 million of the assets of m2 Equipment Finance, as this entity is wholly - owned and consolidated with the bank.

35. Slide 35: Community Bank & Trust and Community State Bank Market Share

    Source: FDIC deposit market share data as provided by S&P Global. Deposit data is as of 9/30/20. * Dollars in millions. COMMUNITY BANK & TRUST Stacey J . Bentley, President & CEO Assets : $ 231 Million (as of 12 / 31 / 20 ) Population : 169 , 565 Market Deposits : $ 1 . 7 Billion Institution Name Of

36. Slide 36: SFC Bank Deposit Market Share

    SFC BANK Monte C. McNew, President & CEO Assets: $780 Million (as of 12/31/20) Population: 467,912 Springfield, MO - MSA Market Deposits: $9.9 Billion Source: FDIC deposit market share data as provided by S&P Global. Deposit data is as of 9/30/20. * Dollars in millions. Institution Name Offices in M

37. Slide 37: 3551 Seventh Street Moline, IL 61265 ww w .Q CRH . c o m

    3551 Seventh Street Moline, IL 61265 ww w .Q CRH . c o m © Copyright 2021 QCR Holdings, Inc. All Rights Reserved

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