Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — The 2014 Growth Conference
33 slides from Qcr's conference presentation, May 1, 2014
Slide 1: The 2014 Growth Conference
CONFIDENTIAL THE 2014 GRowTH CONFERENCE May 1, 2014 (> River BRANCH CaprTaL LLG
Slide 2: Forward-looking statements
CONFIDENTIAL ng and Sek of the Securities Exchange Act of 19: 3 These statements include, but are not limited to, descriptions of the fnancilcondtion, [esl of epsilon sesetand cede qualyt ‘trends, profitability, projected earnings, future plans, vard-looking statements express management's current e
Slide 3: Forward-looking statements (continued)
CONFIDENTIAL competition from (xi) the risks of ing sah transactions, integrating operations as part of these transacti ssible failures to ected g Srouth and/or stpense savings from auch transactions bl) changesin recon products tha mn ra pe mnore safc, costly, of less effective than anticipated; (x
Slide 4: Non-GAAP Financial Measures
CONFIDENTIAL Non-GAAP FINANCIAL MEASURES ‘These slides contain non-GAAP issue ofthe gan lito cet (ine fl perforate tna chl oot oh or cst cs Vat cia atmotn is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure refers to generall
Slide 5: Table of Contents
CONFIDENTIAL TABLE OF CONTENTS. Organic Growth QCRH Overview 2 QCRH Business Segments 53 QCRH Implied Valuation 4 Appendix 5 > River BRANCH CaPITAL LLC od s
Slide 6: Corporate Growth in the U.S. Banking Industry
CONFIDENTIAL CoRPORATE GROWTH IN THE U.S. BANKING INDUSTRY dynamics ‘grow or die” or “i imply a necessity for growth > RIVER BRANCH CAPITAL LLC
Slide 7: Bank ROE Remains Under Pressure
BANK RoE REMAINS UNDER PRESSURE {Attheaed ofa doy bac fragile ests Return on Average Equity Returnon Earning Assets ‘Avg Assets. Avg Assets Non-Operating Fn Nendneret 4 oy) x Margin/ Ava [ + n/ Avg ms Assets (NGI: Eas Non-interest pepe a eee Ag eal: eonomiforetsine stosrant GOP ston high todeand bud
Slide 8: Counteracting "New Normal" Forces in the Banking Industry
CONFIDENTIAL CouNTERACTING “NEw NORMAL” FoRCES IN THE BANKING INDUSTRY depth and constraints on capacity for growth > RIVER BRANCH CAPITAL LLC
Slide 9: Perspectives on Traditional Branches
CONFIDENTIAL perspectives on traditional branches effectively sell it > River BRANCH CaPITAL LLC od 9
Slide 10: Banks Exhibiting Organic Growth
CONFIDENTIAL BANKS exhibited: niche lending These successful “organic grower: ‘organic means or mergers and acquisitions > River BRANCH CaPITAL LLC od 10
Slide 11: Table of Contents
CONFIDENTIAL TABLE OF CONTENTS. Organic Growth 1 QCRH Business Segments 53 QCRH Implied Valuation 4 Appendix 5 > River BRANCH CaPITAL LLC od "
Slide 12: History of QCR Holdings
‘CONFIDENTIAL History of QCR Ho.pines Quad City Bancard Formed First Wisconsin Bank & Trust® Milwaukee, WI Quad City Bancard sells Merchant Acquiting Business Sale of First Wisconsin Bank & Trust ~ Milwaukee, WI Community National Bank merges with Cedar Rapids Bank & Trust on October 26, 2013 and be
Slide 13: Corporate Overview
‘CONFIDENTIAL CoRPORATE OVERVIEW QCR Holdings, Inc. - Founded in 1993 Headquartered in Moline, IL SYMBOL - QCRH $2.39 Billion in Assets $1.46 Billion in Loans = $1.65 Billion in Deposits 4 Facilities Bank & Trust * (3) Shares Outstanding: 7.8 Million Ownership: Company Benefit Plans 7.7% Institution
Slide 14: Top MSAs / Iowa and Illinois
| CONFIDENTIAL Tor 25 MSAs / Iowa AND ILLINOIS | LaRGesT Ma's ~ILLINOIS & IOWA eed — Penton ‘econ’ [Top MsAsby projected medion household | sea pment Penaaten rt witeroee__| income change, 2013-2018 | Cheagosoenspene See O ae Sa [seme Mose ee | Snow Seva See or as Be Ne aan Meuagotanmtopottan | seua
Slide 15: Total Assets
CONFIDENTIAL Tora. ASSET: GAGR 1994-2013 24.03% ‘CAGR 1994-2007 92.26% CAGR 2008-2013 8.32% }&T (2005) BAT BN CRBT (201) \ iBT (1994) | 88 5 8 @ 8 5 § 8s 88 5 8 Bees ge 2S 2 FFF e Ee EE ER EAE SE IN MILLIONS OF DOLLARS > RIVER BRANCH CAPITAL LLC |,
Slide 16: Corporate Overview
CONFIDENTIAL CoRPORATE OVERVIEW ommunity National Bank reunites in 1997 : vescaurteetn in Waterloo, Resulting Pro forma Acquired by QCRH Be Cedar Rapids Bank & Trust = TY FZ oat $277 Million in assets Cedar Pals ie 2 Mason Austin, MN "a Shares Outstanding: 2.09 Million $804 Million in assets 4.2013
Slide 17: Recent Stock Metrics
Recent Stock METRICS Diluted EPS CONFIDENTIAL 2009-2013 -e=TBV/Share wio AOC eStock Price o-Tavshare 2009 ($0.48) 2010 $0.53 2011 $0.92 2012 $1.85 2013 $2.08 > River BRANCH CaPITAL LLC od vi 7
Slide 18: Table of Contents
CONFIDENTIAL TABLE OF CONTENTS. Organic Growth 1 QCRH Overview 2 QCRH Implied Valuation 4 Appendix 5 > River BRANCH CaPITAL LLC od a
Slide 19: Distinct (yet similar) operating charters
CONFIDENTIAL > 3 distinct (yet similar) operating charters le to customize solutions by market & Strategic Advantages Non-Traditional Growth Opportunities lending, and leasing while: = Continuing to redeem SBLF organically Capital Planning - Geeta to grow TCE organically E Preferred conversion added
Slide 20: QCR Holdings Focus Areas
CONFIDENTIAL QCR Ho pines Focus AREAS FOR > Meet EPS expectations by: Financial Initiatives > Improve liquidity in stock Tactical > Expand correspondent banking Initiatives > Grow wealth management income > RIVER BRANCH CAPITAL LLC
Slide 21: Leasing Overview
CONFIDENTIAL OVERVIEW 100% of m2 Lease Funds 2005 > As of December 31 i i assets of $136m and net income of $2.4m WI, butal: > Key leasing niches: Marine Equipment = Health Care = Machinery/Machine Tools — Office Technology Printing — Bakery Telecom > RIVER BRANCH CAPITAL LLC q
Slide 22: Correspondent Banking Overview
CONFIDENTIAL OVERVIEW > Depth of product offerings: Online Cash Management Safekeeping Services Trust and Investment Services Fed FundsLines Loan participations Wisconsin {non-interest bearing) 12/31/13 Mlinois loans/leases ites y Nears dente Sane > River BRANCH CaPITAL LLC od 2
Slide 23: Guaranteed Lending Overview
CONFIDENTIAL GUARANTEED OVERVIEW » SBAL igit ili 9/30/13: chartered banks (dollar volume) chartered banks (dollar volume) volume) Note: 2018 USDA‘ ankings wl bereleased May 2014 > River BRANCH CaPITAL LLC od B
Slide 24: Wealth Management Segment Overview
CONFIDENTIAL WEALTH MANAGEMENT SEGMENT OVERVIEW , % management professionals > Depth of product offerings: Financial Planning Family Offi Ass jement Core Banking; Commercial & — Trust Services Consumer — Estate Planning Lending Qualified Plans and eastern lowa—big banks are going “up market” > RIVER
Slide 25: Table of Contents
CONFIDENTIAL TABLE OF CONTENTS. Organic Growth 1 QCRH Overview 2 QCRH Business Segments 53 Appendix 5 > River BRANCH CaPITAL LLC od 2s
Slide 26: QCRH Segmented Valuation Range
CONFIDENTIAL | QCRH SEGMENTED VALUATION RANGE 5 IMPLIED EQUITY VALUERANGES —LTH NET INCOMEBASIS st68 sim oo os ss we z 7 ss es se 5 =z: ‘ ma ro Ha saa Community boing Tosa Coverpondertbaring "Goverment garresd ” Weathanagenene "ena comment baka Lessing ee roa Toners eo aaa rneticee a8 a ws wo as aa
Slide 27: Sum-of-the-Parts Analysis
CONFIDENTIAL SUM-OF-THE-PARTS ANALYSIS 5 i=. d SUN-OF-THE PARTS VALUATION ANALYSIS inmsneas eas 20 78 sis $150 s136.5 0 %0 ® cap Median” Srkng Sema” “Guseene: “Maat: Gare cap: eagen” Bohn, Taomog Gaara “Mgmt sacra op; tc re a z set vevswnnte inane _ohennt_tntnatene {Toa Conn S iteamne 8 sont a tan C
Slide 28: Table of Contents
CONFIDENTIAL TABLE OF CONTENTS. Organic Growth 1 QCRH Overview 2 QCRH Business Segments 53 QCRH Implied Valuation 4 > River BRANCH CaPITAL LLC od 2B
Slide 29: QCR Holdings Information
CONFIDENTIAL INFORMATION QCR H. eR Holdings, Ine Douglas M. Hultquist CEO jeventh Street Moline 26s parr th mj accuating (309) 736-3584 He began his career with KPMG Peat Marwick in 1977 and was named a partner in 1987. In - 191 the Quad ie ofcecfPMG Peat arckmarged wih McGladrey erulen M Itquist se
Slide 30: River Branch Capital Contact Information
CONFIDENTIAL River BRANCH Capital ConTACT INFORMATION River Branch Capital Steven P, Ken ident eles President of River Branch Capital LC CRBC) anda member of River branch Hating (ROH Board of Decers andlnvesiment Comntice chise, 1.60654 Main: 312-244-6900 Ji, Kent joined RBCin May 2011 from Keefe Br
Slide 31: QCRH Proxy Peer Comp Group
CONFIDENTIAL QCRH Proxy Peer Comp Group ec ws sions oh on — ew tone "toe We Ne wt ent TOA Ea 7 aa ats tree a) os 1m ime BT 4 asa ee amie oe ae te Re om ease aes tam aOR perme ° 2aia oo " 2m cuce ae ‘8 rr er er er ars one te 055 tartan aa Om 78 Se ee ee ‘a8 sera uae ts tn teak ci cea = acral ve otoe
Slide 32: Leasing Peer Comp Group
LEASING PEER Comp Group CONFIDENTIAL oo ee a rae pe = ees Ee ees | LESS ( River BRANCH CaprTaL LLG 2
Slide 33: Wealth Management
CONFIDENTIAL WEALTH MANAGEMENT 9) te $059 1G «MAN TBM SONS HOH ITH OK aI Tost S078 [an ES war 77 Tite 5067 NA aT Ade RIO am 50. NA 169% 79K zoek tte TROW T-Rowe Pace sss 7 6 tam 82 soon sis oa ten 20% ame Atta tarapets sipos joss: ser com $210 G6a% sah EH GHB o% Ev Exonvance ‘$006 ase 2TH ey ee er a