Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (August 2011)
40 slides from Qcr's investor presentation, Aug 5, 2011
Slide 1: QCR Holdings, Inc.
R HOLDINGS, INC.
Slide 2: 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 3: Forward-Looking Statements - Continued
FORWARD-LOOKING STATEMENTS - Continued (x) 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
Slide 4: 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 5: Table of Contents
C R HOLDINGS, INC. a relationship driven organi: Table of Contents WhO WO Ares scccunccemaisccewacs Our Strategy -cccccrseancincemann Fimancialls...........ssssccsesceeesessnee Strategic Advantages............... ADDONGKisscsrexrecommumerccesewosy
Slide 6: QCR Holdings, Inc. will be the premier provider of financial services
QCR Holdings, Inc. will be the premier provider of financial services to businesses and individuals for whom relationships matter, in markets where we can excel LEFT TO RIGHT SEATED ROW 1 Vie Quinn Rand Westlund SEATED ROW2 Tom Budd John Rodriguez QCR Holdings, Inc. Executive Management Team
Slide 7: Executive Management Team
Executive Management Team DOUGLAS M. HULTQUIST, CPA President and Chief Executive Officer 34 Years in Banking/Financial Services TODD A. GIPPLE, CPA Executive Vice President, Chief Operating Officer and Chief Financial Officer 26 Years in Banking/Financial Services JOHN H. ANDERSON President and Chi
Slide 8: Corporate Overview
Corporate Overview Founded in 1993 Headquartered in Moline, IL $ 1.8 Billion in assets $ 1.2 Billion in deposits $ 1.2 Billion in loans 10 Facilities Quad City Bank & Trust (6) Rockford Bank & Trust (2) Cedar Rapids Bank & Trust (2) m2 Lease Funds LLC (1)
Slide 9: Top MSAs / Iowa and Illinois
eee HOLDINGS, INC. a relationship driven organi Top 25 MSAs / lowa and Illinois reaper pen, LNW onan 2s sam eneoe min Canes Bt NEA, seams % 3s 0308 Des re, sr20704 6 2 sus Devepat eine Rsk an Ut S108 a isd Pea e455? 2 te 7880 Roa $5201 = 16 50396 Cosas. 6 on 08 2088 ‘harpogrroara, Hoe = 10 22628 spo
Slide 10: History of QCR Holdings, Inc.
mee a relationship di History of QCR Holdings, Inc. 1993 Founded by Mike Bauer and Doug Hultquist 1994 Quad City Bank & Trust* — Currently $1.04 Billion in Assets 2001 Cedar Rapids Bank & Trust* — Currently $558 Million in Assets 2005 Rockford Bank & Trust* — Currently $272 Million in Assets 2005 Qu
Slide 11: Peer Comparisons
Peer Comparisons Assets Total Risk-Based Capital Ratio TCE Texas Ratio NPAs/Assets ROE Efficiency Price/Tangible Book ‘Date as of June 30, 2011 “Data as of March 31, 2011 QCR Holdings, Inc.* illion| 0% 24.8% 7. 72.3% e = |o a 5 Lng SS |) 2 Cy ele a BS 1] 3S Average** $ 3.0 Billion 14.9% 6.6% 64.1% 4
Slide 12: Book Value of Common Stock Vs. Fair Market Value
Book Value of Common Stock Vs. Fair Market Value IN MILLIONS OF DOLLARS $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $0 DeeS3 DecS8 Dee95 Dee95 D4C97 D4e-9E OHe-99 DUCT Dec-O1 Deco? DeeOS DecOd Dee-05 D4C05 D¥C-07 DeeOE D¥e-09 DecI0 "= Book Value of Stock m Fair Market Value p12
Slide 13: Strategic Issues Impacting Market Value Per Share
mee; INC. a relationship driven organization” Strategic Issues Impacting Market Value Per Share Low Tangible Common Equity Ratio - More Common Shares? Treasury Capital of $38.2 Million — How will it be Redeemed? Asset Quality Questions — Have NPA’s Peaked? “Normalized” Earnings — When and What?
Slide 14: Entity Wide 2011 Strategic Initiatives
Entity Wide 2011 Strategic Initiatives Prioritization of growth in earnings and earnings per share (EPS). over growth in assets Preservation of capital and increasing tangible common equity (TCE) to allow for redemption of Treasury Capital without the need for a dilutive common equity raise Continue
Slide 15: Summary of Financial Results 2006-2011
Summary of Financial Results 2006-2011 AcrUALYTO pouaey Net interest income Nonrinterest income Nominterest expense Pre-tax pre-provision Provision expense Income before taxes Income taxes Income from continuing operations *Naknecessriypreccon of 2011 annus earings, $29806 $34,352 $44,623 $50,662 $4
Slide 16: Total Consolidated Assets
C R HOLDINGS, INC. Total Consolidated Assets IN MILLIONS OF DOLLARS CAGR 1994-2010 27.23% CAGR 1994-2007 32.26% CAGR 2008-2010 7.54% $2,000 $1,750 $1,500 $1,250 $1,000 $750 $500 $250 $0 Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 De
Slide 17: Total Consolidated Deposits
C R HOLDINGS, INC. Total Consolidated Deposits IN MILLIONS OF DOLLARS Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10
Slide 18: A Closer Look: Total Consolidated Deposits (2006-2010)
A Closer Look: Total Consolidated Deposits (2006-2010) IN MILLIONS OF DOLLARS $600 ™ NON-INTEREST BEARING S INTEREST BEARING =CD's $500 $400 $300 $200 $100 $0 Dec.312006 Dec.312007 Dec.312008 Dec.312009 Dec.31 2010
Slide 19: A Closer Look: Consolidated Loan Composition (2006-2010)
A Closer Look: Consolidated Loan Composition (2006-2010) IN MILLIONS OF DOLLARS $600 = COMMERCIAL/INDUSTRIAL $500 = COMMERCIAL REAL ESTATE “LEASES ™ RESIDENTIAL REAL ESTATE = INSTALLMENT $400 $300 $200 $100 $0 Dec.31 2006 Dec.312007 Dec.312008 Dec.312009 Dec.31 2010
Slide 20: Loan Portfolio Composition
a relationship driven organization Loan Portfolio Composition June 30, 2011 IN MILLIONS OF DOLLARS TYPE Commercial & Industrial Non Owner Occupied Commercial Real Estate Owner Occupied Commercial Real Estate Residential Real Estate Direct Financing Leases Installment and Other Consumer. Commercial C
Slide 21: Strategic Advantages
mee a relationship di Strategic Advantages + 3 distinct (yet similar) operating charters — able to customize solutions by market + Managed by local veteran bankers and governed by local Board of Directors + Credit quality better than peers + Historic growth better than peers * Top 5 Deposit market s
Slide 22: Key Differentiator: Correspondent Banking
Key Differentiator: Correspondent Banking + Uniquely positioned due to veteran Correspondent bankers on our team + Uniquely positioned with software, systems and processes + Well positioned with product offerings - Online Cash Management _ - Image Cash Letter Sys - Loan Participations - Bank Stock F
Slide 23: Key Differentiator: Wealth Management
Key Differentiator: Wealth Management + As of June 30, 2011: Over $1 Billion in Trust (and related) accounts — $278MM in Brokerage (and related) accounts. Over $1.3 Billion Total + Uniquely positioned due to our veteran team of Wealth Management professionals + Uniquely positioned with software, sys
Slide 24: Key Differentiator: m2 Lease Funds, LLC
mee; INC. Key Differentiator: m2 Lease Funds, LLC * 80 % Ownership by Quad City Bank & Trust - 20% Ownership by CEO John Engelbrecht + Acquired August of 2005 2006 2007 2008 2009 2010 2011 (18'6 months) + Key Niches - Marine Equipment - Printing - Office Technology Leased Assets (in millions) Pre-Ta
Slide 25: Thank You
Thang YOu.
Slide 26: Appendix
QB INC. relationship driven organization® Appendix
Slide 27: Peer Credit Analysis Graphs: NPAs / Assets
HOLDINGS, INC. relationship driven organi Peer Credit Analysis Graphs NPAs / Assets [STITUTION Peer Group: (ld Second Bancorp, ne Macatawa Bank Corporation ‘Southwest Bancorp, Inc. ‘Mercantile Bancorp, Ine ‘Mercantile Bank Corporation Baylake Comp Taylor Capt Group, Inc (MB Financial, ne. Heartland
Slide 28: Peer Credit Analysis Graphs: NPAs / Loans + OREO
HOLDINGS, INC. a relationship driven organization” Peer Credit Analysis Graphs NPAs / Loans + OREO NPAS / institu TICKER ee eee Peer Group: ‘Old Second Bancorp, Inc. sec 16.28 Mercantile Bancorp, In. MBR un ‘Macatawa Bank Corporation cee 1.9 ‘Southwest Bancorp, Inc. oKsB 10.51 Baylake Corp. BYK 8.40
Slide 29: Peer Credit Analysis Graphs
Peer Credit Analysis Graphs NCOs / Average Loans Provision Expense / NCOs —ecckH | —#PeerMean we ccrH | + PeerMean 20% 000% wT aa = 20% 00% me moos ‘00% oon 4 ove ogee 8 8s 8 SR B 238888583888 2s: 8 g g g 3 a2 ee &€ 2098228 2 3 Be 8 € € ek RRB —e0CRH = —*PeerMean Source: KBW/SNL Financial 331/11 zan
Slide 30: Peer Analysis 2011 Q1
Peer Analysis 2011 Q1 ‘Source: SNL Financial, data for the quarter ended 3/31/11 Note: Texas rato equal to (NPAS + Loans 80 Days Past Due) /(Tangible Common Equity + Loan Loss Reserves).
Slide 31: Quad City Bank & Trust
QUAD CITY BANK & TRUST
Slide 32: Executive Officers
Executive Officers People you can bank on. é
Slide 33: Senior Officers
Senior Officers 2 A People you can bank on. :
Slide 34: Senior Officers
Senior Officers People you can bank on. ‘
Slide 35: Senior Officers
Senior Officers People you can bank on. 5
Slide 36: Highlights
Highlights DEC208 EEC 000 YE DECZOIOYE June 30,2011 Assets msskie SISTA eS LastO moe Noninterest | ggarnati merase Suarose ancora Depots srenes suri g9aseses sama Net interest the wang ange masums aes Wealth Bulders seas 290883 ms Loans ee ee pws oreo usmeess—aiammsis—a8unagne = tana0e pas asa NewS
Slide 37: Balance Sheet Restructuring
Balance Sheet Restructuring The Company's largest subsidiary bank. QCBT, executed balance shoot esiractring ding the is quarter of 2011, Spesfcally, the bank wlizedexeess liquidity’ and prepaid $15.0 milion of FHLB advances with a weighted average intrest rate of 487 Prepayment fees. The proceeds fr
Slide 38: Key Differentiator: Wealth Builders Division
Key Differentiator Wealth Builders Division + As of June 30, 2011: Over SI Billion in Trust (and related) accounts — 278MM in Brokerage (and related) accounts. Over S1.3 Billion Total + Uniquely positioned due to our veteran team of ‘Wealth Management professionals + Uni 1ely positioned with softwar
Slide 39: Key Differentiator: Correspondent Banking
Key Differentiator Correspondent Banking + Uniquely positioned due to veteran Correspondent bankers on our team + Uniquely positioned with software, systems and processes + Well positioned with product offerings: = Online Cash Management - Image Cash Letter System - Loan Participations ~ Bank Stock
Slide 40: Key Differentiator: m2 Lease Funds, LLC
Key Differentiator m2 Lease Funds, LLC + 80% Ownership by Quad City Bank & Trust 20% Ownership by CEO John Engelbrecht + Acquired August of 2005 emsed Aste Pretax Karaing, Go mitons) 2006 $53.0 $875,651 2007 $68.7 $1421,142 2008 $797 S784.424 2009 $90.6 2010 $85.4 2011 (iss6monts) $88.2 $967,444 + K