Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (November 2013)
35 slides from Qcr's investor presentation, Nov 21, 2013
Slide 1: 2013 Financial Presentation
QCR HOLDINGS, INC. ip driven organizat 2013 Financial Presentation
Slide 2: Forward-looking statements
ae ‘arélationship driven organization to, descriptions of the financial condition, results of operations, asset and credit quality trends, profitability, projected earnings, future plans, strategies and expectations of QCR Holdings Inc. (the “Company”). The by use of the ores “believe, “could assump
Slide 3: Forward-looking statements (continued)
competition from a wide variety of local, regional, national and other providers of financial, investment and insurance services; (xi) the risks of merger: time and costs of inplenanti 3 failures to achieve ex; or other conflicts, Juding hi storms, droughts, tornad nd flooding, Commission, + 2012. s
Slide 4: Non-GAAP Financial Measures
HOLDINGS, INC. arelationshi janization NON-GAAP FINANCIAL MEASURES ‘These slides contain non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure ings, Inc. has provided reconeliations within the slides, as necessary, of the non-GAAP financial measure to the most direc
Slide 5: Table of Contents
eee INC. a rélationship'driven organization” Table of Contents Who We Are 6 Financial Information .. arms 9 Focus Areas for 2013 & 2014 ...... 14 Capital History and Plan.. 15 Strategic Advantages 17 Key Differentiators ... 18 Appendix 24
Slide 6: History of QCR Holdings, Inc.
arelations! nm mee INC. Fs rlationshipcriverrorgarization’ History of QCR Holdings, Inc. Quad City Bank & Trust — Currently $1.25 Billion in Assets Quad City Baneard Formed Rockford Bank & Trust ~ Currently $334 Million in Assets First Wisconsin Bank & ‘Trust® ~ Milwaukee, WI Sale of First Wisconsin
Slide 7: Corporate Overview
HOLDINGS, INC. arrelationship driven organization’ Corporate Overview QCR Holdings, Inc. - Founded in 1993 Headquartered in Moline, IL SYMBOL - QCRH ws OE $2.49 Billion in Assets $1.54 Billion in Loans $1.74 Billion in Deposits m2 Lease Funds LLC (1) Community Bank & Trust * (4) Shares Outstanding:
Slide 8: Top MSAs / Iowa and Illinois
HOLDINGS, INC. Top 25 MSAs / lowa and Illinois cago oat aponil, Lt.n soreor 2 a 953.628 147% 55504 1971% Sots NO po t 285.85, 142 51204 1443 me Conel Bite MELA 25.868 Bs3.619 505 51310 1817 Des Maines 1A 12853 505.247 733 55247 aaa eeepat a ee ae 7178 4 383.562 181 1900 arm 1 203377 175 50315, 1592
Slide 9: Total Consolidated Assets
IGS, INC. HOLb! i arélationship driven organization™ Total Consolidated Assets CAGR 1994-2012 24.77% CAGR 1994-2007 32.26% CAGR 2008-2012 6.86% N CNB (2013) \ ) CRBT (2001) N &T (2005) Dee’ Dee! Dee’ Dee 98 Dee! Dee! Dee! Dect Dec.04 Dee! Dee06 Dee Dee! Dect Dee.10 Dee: Dee.t2 sine. 13 IN MILLIONS O
Slide 10: Balance sheet summary 2013
HOLDINGS, INC. ‘relationship driven organization i 2013 pesto pets rr om = om = ec - es eee Cush rnd a an raw a6 war am jaoers ose 5% wae 9% ce ‘ enor 08 = en mt a se a ainsi ee és usta ae ane ee = ia M0) awl aw) wl sal aaa Tota octal ogy 1404s 7% 1255957 tos % 146337 147953 8% TOTAL ABILITIES AND:
Slide 11: Summary of Financial Results
mee INC. relations organiza Summary of Fi i 2013 2008 2010 2011 2012 a3 YTD 2013 (in thousands) Net interest income $50,662 $49,864 54,145 $57,649 $47,210 Non-interest incorne 15,547, 5, 17,462 16,621 18,087 * Nominterest expense (46,937) (48,549) (60,993) (62,259) (46,220)"* Pre-tax pre-provision 1
Slide 12: Corporate Overview: Community National Bank
IGS, INC. relationship driver Corporate Overview mie Community National Bank Founded in 1997 Resulting Proforma Gedar Rapids Bank & Trust Headquartered in Waterloo, IA. ‘Acquired by QCRH May 13,201: COMMUNITY EON Community National Bank Q4 2013 $ 800 Million in assets $ 570 Million in deposits $191
Slide 13: Recent Stock Metrics
HOLDINGS, INC. arelation: ven organization” Recent Stock Metrics $17.00 -®=TBV/Share wio AOC! $15.00 we siocx Bice es —®TBWShare $11.00 $9.00 $7.00 2009 2010 2011 2012 2013 Diluted EPS ($0.46) $0.53 $0.92 $1.85 $1.59"
Slide 14: Focus Areas for Improving Shareholder Value 2013 and 2014
Focus Areas for Improving Shareholder Value 2013 and 2014 Cen nw ek wD Meet EPS expectations CNB. includ; eee ae Maximize SBA/USDA gains on loan sales Grow Wealth Management income Improve liquidity in our stock Drive down efficiency ratio Conversion of Seri d ki k by 12/31/13 1 Small Business Lendi
Slide 15: History of Capital Raises
HOLDINGS, INC. arelationshi History of Capital Raises = § P Dec 1996 Private Placement of SIM in Preferred Stock at 9.75% Je 1987 _Private Placement of $I.SM in Preferred Stock at 9.75% Nov 1998 3 for 2 Common Stock Split Sep 2001 $733 per share today). ‘eb 2004 (Redemption of $12M at 9.20% TRUPS) M
Slide 16: Capital Plan
HOLDINGS, INC. relation: veri inization® Capital Plan * Continue to redeem SBLF organically. Cc ¢ ays ible Preferred | k pri ds $1 for at least 20 trading days. 20" day occurred Nov. 18, 20. e i TCE or: icall Seri. E ° 146% common shareholders. * Consider a capital rai (ditional 1 pr * Our capital p
Slide 17: Strategic Advantages
HOLDIN INC. Strategic Advantages local decisions, local centralized and efficient manner Credit quality better than p Historic growth better than peers Opportunities in Correspondent Banking, Wealth Management, SBA/USDA lending, and m2 Le
Slide 18: Key Differentiator: Correspondent Banking
nization Key eaten Correspondent Bankin: team. Uniquely pe P y pi * Depth of product offerings - Loan Participations - Bank Stock Financing - Credit Card Services - Fed Funds Lines Wisconsin. * Total Bank Stock 1
Slide 19: Key Differentiator: Group Operations
HOLDINGS, INC. arelation: ven organization” Key Differentiator: Group Operations ¢ Accounting — John Oakes Customer ing — Kathy Francque Beth Easterla and John Rodriguez ¢ Funds Management — John McEvoy Jill DeKi ¢ Information Technology — Michael Wyffels and John Rodriguez ¢ Internal Audit — Tim Ha
Slide 20: Key Differentiator: Wealth Management
[OLDINGS, INC. Key Differentiator: Wealth Management 201 tely $1.55 Billion in “ompetitively ‘eteran team of Uniquely f + Depth of product offerings: - Financial ening - Trust Ser - Brokerage and RIA - Family Office ~ Qualified Plans - Asset Management fate Planning - Insurance “big banks are going
Slide 21: Key Differentiator: SBA - USDA Lending
mee INC. Key Differentiator: SBA - USDA Lending SBA Loans Originated for the Fiscal Year Ending 9/30/13 - Quad City Bank & Trust - 3rd in the state of lowa for - Cedar Rapids Bank & Trust - 2nd ‘olume) f Towa for i ‘olume) - Rockford Bank & Trust - 16th in the state of Illinois (dollar volume) th in
Slide 22: Key Differentiator: m2 Lease Funds, LLC
Key Differentiator: m2 Lease Funds, LLC Assets (in milions) Pre-Tax Earnings Net Charge-ofs to Leases $530 $875,651 014% * Key Niches: - Marine Equipment - Machinery/Machine Tools - Printing - Telecom - Health Care - Office Technology - Bakery
Slide 23: Questions
T ia el AK, YOU, Questions
Slide 24: Appendix
HOLDINGS, INC. arelationship driven organization” Appendix
Slide 25: Quad City Bank & Trust
HOLDINGS, INC. Quad City Bank & Trust aD if im a aD H. Anderson, President & CEO Assets: $1.25 Bill Population: Market Deposits $7.3 Billion Daven Rock Island MSA ~ located on the tmaacsioi Raver Major Employers Rock Island Arsenal Deere & ae Genesis Heal se reo vat Systeme hon Kraft 3M Excelon Js —
Slide 26: Cedar Rapids Bank & Trust
HOLDINGS, INC. relations organiza 3 260, Market oepst ay 7 Billion Cedar Rapids Major Employers Rockwell Collins ‘Aegon USA St. Lukes Hospital Mercy Medical Center Whirlpool Corporation Kirkwood Community College Quaker Food and Snacks Cedar Rapids Community Schools ‘Amana Refrigeration Mcl Cedar Ra
Slide 27: Rockford Bank & Trust
HOLDINGS, INC. Rovkiora Bank & Trust National & State Rankings, Rockford gee if + Top 10 in the Most Affordable MSA's in America is D. Budd, President & CEO Assets: $304 Million Market Deposits: $5.2 Billion + Top 20 “Best Cities for Manufacturing Jobs” Rockford MSA 7 ‘employment in the U.S. Major E
Slide 28: Community Bank & Trust
HOLDINGS, INC. relations organiza Community Bank & Trust Gsoumuntry Assets: $277 me ion f i Population: 168, a8 a Blue Zone Worksite, + Waterloo is one of 21 metro areas in the nation that are in a state of Market a = 57 Billion eee ee steady expansion (Moody's June 2012) the U.S. (msn.com 2011) Maj
Slide 29: Loan Portfolio Composition
S, INC. ‘relationship driven organization Loan Portfolio Composition September 30, 2013 IN MILLIONS OF DOLLARS PE Commercial & Industrial $ ana 31% Non Owner Occupied Commercial Real Estate 405.6 26 Owner Occupied Commercial Real Estate 2595 7 Residential Real Estate 1508 40 Direct Financing Leases
Slide 30: Peer Credit Analysis
IGS, INC. HOLD) \ Peer Credit Analysis INSTITUTION TICKER NPAS/ ASSETS % Peer Group: il iat HIF 2n 02 00 | ScCRH _—e—Medion wai 08 4003 aan0 aan 4on2 en Bak Gon awn 427 it Business Financial Seviees, ne, FIZ 101 AVERAGE: 248 MEDIAN: F ‘ack HoLDINGS, INC crs 429 sine nian =z
Slide 31: Charge-Off Analysis
HOLDINGS, INC. Charge-Off Analysis neo rors ow Neos Loans ask Loane NCOs "Pe" Leane 20082013 20) ‘esi0r om) estore) z07g01s 02000) oo ‘ack HOLDINGS, INC. AND SUBSIDIARIES: Hotes, ne 1308 ‘oat pod eee 25% esc Estes Tet Company 1755 eae 215% sone 250 (Cote Ras dak ast Comey rose 29,39 Sei 20 2a Rocklr
Slide 32: Securities Portfolio Snapshot
S, INC. HOLDING: QCR Holdings, Inc Snapshot As ar Valu (0008) sri - .ec1eD 0k Value 0003) 500: Book Velie % Total GalaLoee Book Vild epic Term eee es Agency (Fed) Err) oe 705 1 3 a M0 (Fae) 51036 % 1.505 2m 30 a Cemporte (Fe) 955 0% s a 7 Cemperte Fat) 281 0% 29) 133 02 MBS Fixed) 100228 1% 2841 298
Slide 33: Debt maturities
mee INC. arelations! QCR Holdings, Inc. en — eal Toss ‘Weighted Average Weiat : Maturity: ‘Arnount Due Quarter-End ‘Arncunt Ove (eet Year ending December 31: arreuts in thousands) 2018
Slide 34: Our Mission
LEFT TO RIGHT OUR MISSION: QCR Holding: financial services to businesses and
Slide 35: Executive Management Team
mee): INC. Executive Management Team JOHN A. RODRIGUEZ, COM DOUGLAS M. HULTQUIST, CPA RICH W. COUCH President nd Chet Execute ee | President and Chet Executive OFicer Executive Vice President 538 Years in Banking/Financiel Ser mn Leos Furs LLG Deposit Opeatins/infermation Services 26 Years in Bankin