Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Merger or Acquisition (May 2013)
40 slides from Qcr's merger presentation, May 9, 2013
Slide 1: Community National Special Shareholder Meeting
Community National ee Special Shareholder Meetin;
Slide 2: Forward-Looking Statements
HOLDIN' IC, a'relationship driven organization’ to, descriptions of the financial condition, results of operations, asset and credit quality trends, rte, “Company’). The Company ing intends such forward-looking statements to be covered by the safe harbor provisions for forward-lookir “believe, inten
Slide 3: Forward-Looking Statements (continued)
HOLDIN IC. FORWARD-L! Conti competition from @ wide variety of local, regional, national and other imorkeisrof financial, investment and luding, without limitation, the related Juding hi torms, droughts, tornados and flooding, that may lly and in pany’ (xiv) the failure of Commission, Risk Factor 01
Slide 4: Non-GAAP Financial Measures
IGS, INC. ganization NON-GAAP FINANCIAL MEASURES relationship di ‘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 oe i
Slide 5: Transaction Rationale
Transaction Rationale base IA) that emulate IL)
Slide 6: Additional Reasons To Do Transaction
Additional Reasons To Do Transaction Leverage our revenue producing skills Well priced deposits Good loan mix (similar to QCRH) Good credit quality Earnings accretion Perception we want to grow Prepare for larger transactions
Slide 7: Panther Overview: Pro Forma Loan Summary
Panther Overview PRO FORMA LOAN SUMMARY a- Secured by Farmland 3700 0.3% 11061 5.0% 14941 1 4 4 Famiy Real Estate 186,038 14.4% 43,423 20.9% 461 183% Bs ami 53% 6.834 3.0% 75,458 5.0% Tl Commercial Real Estate 445,739 a% 78,190 30.7% 521,869 34.9% Z Aagiultal 8 0.0% 2,794 19% 2927 02% Commercial & I
Slide 8: Panther Overview: Pro Forma Deposit Summary
Panther Overview PRO FORMA DEPOSIT SUMMARY . 0s its ( [Ej Jumbo Time Deposits ( > $1004) Total TeaaTTE QCR Holdings, Inc. Pro Forma v Jumbo | Tine Demand 1" oo Nowand ‘ATS oe Mos a “oe Note: Regulatory financial deta as of December $1, 2012 Source: SNL Financial LC RAYMOND JAMES° 8
Slide 9: Panther Overview: Pro Forma Branches and Deposit Market Share
Panther Overview PRO FORMA BRANCHES AND DEPOSIT MARKET SHARE Waterloo-Cedar Falls MSA. 2 UW. Bancorp (MAN) 41 Wels Fargo & Co, (CA) FSB Financial Services (A) iat ee Coeaton GA) Regions Financial Cor ‘GNB Bancoep (A) Community National Sancorporation aay 10 10 Rigler Investment Co. (A) Ht If FidetyB
Slide 10: Corporate Overview
Corporate Overview H Founded in 1993 Fee ee in Moline, IL |B Founded in 19: dectinensen in Weis IA SYMBOL - QCRH jon in assets $ 1.37 Billion in deposits $287 Million in assets $ 249 Million in deposits $ 1.27 Billion in loans $ 209 Million in loans 10 Facilities ‘Quad City Bank & Trust (6) Rockford
Slide 11: Corporate Overview — Facility Map
arelation Corporate Overview — Facility Map
Slide 12: Top MSAs / Iowa and Illinois
iS, INC. [OLDING: avrelationship driven organization’ Top 25 MSAs / lowa and Illinois Deposke GIN) ref inet ef Branches Total Pputaton pop yg Teed Med ounnol Pro CheagoeiatNapei, LN srarer a ai aco cas razr 180% Station pid * aioe "0 287 ‘2 ime cain Bs NEA me wa 500 sare oz Bre Wns Wes Bee Mores, (A
Slide 13: Quad City Bank & Trust
nade he Quad City Bank & Trust gue Hse National Rankings — Quad Cities H. Anderson, President & CEO 's: $1.18 Billion States. . + Alcoa (Quad Cities) is the world's premier aerospace Population B80; supply plant — the hub of Alcoa's $3B aerospace business irket Deposits: 7 3 Billion ing is 3.3% lowe
Slide 14: Cedar Rapids Bank & Trust
HOLDINGS, INC. Cedar Rapids Bank & Trust i i dar Rapid pi Larry J. Helling, President & CEO 7 Assets: $626 Million E Population: 260,15: ) Market Deposits: $4.7 Billion Aaa Bond Rating (eeey say 2011) Cedar Rapids MSA + U.S, Headquarters for Aegon USA. Major Employers i i ‘ockwell Collins Time Magaz
Slide 15: Rockford Bank & Trust
HOLDINGS, INC. Rockford Bank & Trust National & State Rankings — Rockford + Top 10 in th Affordable MSA‘ D. Budd, President & CEO * Top 10 inthe Most Affordable MSA's In Ametica Assets: $314 Million é Market Deposits: $5.2 Billion * Considered Illinois’ second largest city Reckford MSA Major Employe
Slide 16: Key Differentiator: SBA - USDA Lending
Key Differentiator: SBA - USDA Lending SBAL the Fiscal Year Ending 9/30/12: Quad City Bank & Trust - 8th in the state of 1 éutni8 - Cedar Rapids Bank & Trust - Ist in the state of Iowa for ‘olume) - Rockford Bank & Trust - 11th in th inoi olume) + USDA Lendi Fiscal Year Ending 9/30/1 & Trust ~ Leade
Slide 17: Key Differentiator: Correspondent Banking
Key Differentiator: Correspondent Banking dnelypodt ompetiti + Depth of product offerings: - Loan Participations - Bank Stock Finaneing - Credit Card Services - Fed Funds Lines ¢ Favorably f Wisconsin. ith Total 7 DBI/I2 bearing). ; d Bankers Bank of Illinois. * Total Bank Stock Loans as of or 3.7%
Slide 18: Key Differentiator: Wealth Management
OCR HOLDINGS, INC. ‘driven Key Differentiator: Wealth Management Nn, } 1.2012: roximately $1.1 Billion in ae. ‘ di Wealth ‘ompetitively teran team of iq Pi * Depth of product offerings: - Finaneial Planning ~ Asset Management ~ Trust Services - Estate Planning - Brokerageand RIA = Insurance ~ Family
Slide 19: Key Differentiator: m2 Lease Funds, LLC
arelation OCR HOLDINGS, INC. Key Differentiator: m2 Lease Funds, LLC © Bf 3 f LLC. © Quad Cit 1 f Assets (in millions) Pre-Tax Earnings 2008, $530 S 875,651 2007 s6a7 $1,421,142 2008 $797 84,42. 2009 s906 $855,679 2010 $854 52,741 2011 $988 $2,069,470 2012 $109.7 $3,367,182 + Key Niches = Marine Equ
Slide 20: Financial Overview
QCR Holdings, Inc. Financial Overview Todd A. Gipple Executive Vice President Chief Operating Officer Chief Financial Officer
Slide 21: Today's Financial Overview
[OLDINGS, INC. arrelationship driven organization Today’s Financial Overview * Brief Review of Net Income and EPS Results for 2009-2012 « Recent Stock Price Performance « AReport Card on our 2011 & 2012 Entity-Wide Strategic Initiatives
Slide 22: Summary of Results 2009-2012
arrelationship driven organizat Summary of 2009 2010 2014 2012 let interest income $50,662 $49,864 = $54,145 $57,649 15,547 15,406 17,462 16,621 Non-interest expense (46,937) (48,549) (60,993) (52,259) Pre-tax pre-provision 19,272 16721 20614 22,011 Provision expense (16,976) (7,464) (6,616) (4,371)
Slide 23: sone ie
sone ie arrelationship: $19.00 $16.50 $17.00 $15.00 $13.00 $11.00 $9.00 $7.00 $5.00 —+ r pot © © SF © So or oo oO FPP ee cere esc e lod e
Slide 24: arrelationship driven orga
go arrelationship driven orga $19.00 $17.00 $15.00 L $13.00 WAN) Eamings $11.00 / NPAs | / SBLF | $0.00 eo —— TCE f ($8.90 aS / $9.14 Coverage t $7.00 Inv. Rel. $7.14 $5.00 a —— FSS PKs ses GH GG GH Ca a aR Re a a a a a eC fen oo e
Slide 25: Entity Wide Strategic Initiatives
arelation Entity Wide Strategic Initiatives , over growth in utilizing same Continue to improve asset quality Deliver , r ? F Aen eT Improved Pricing/Client F k F Value to i utilizing
Slide 26: Entity Wide Strategic Initiatives: Earnings Growth
moe Entity hare (EPS), over growth in assets Grew earnings by %, and earnings 30 per share a 101% utilizin’ Continue to improve asset quality Deliver hareholder performan utilizing
Slide 27: Entity Wide Strategic Initiatives: Capital
R IGS, INC. HOLD} relationship driven orga Entity , over growth in assets apital for redemption of SBLF raise aff Increased TCE from ul 3.85% to 4.02% luring 2012 and Continue to improve asset quality teceemed $10.2MM in SBLF Capital. Deliver " Improved Pricing/Client F i pi Kk Pri ‘alue “shareholde
Slide 28: Entity Wide Strategic Initiatives
moe Entity assets , over growth in Continue to improve asset quality Deliver p! falue hareholder performan utilizing
Slide 29: Entity Wide Strategic Initiatives: Asset Quality
Hol arrelationship dri Entity , over growth in assets Reduced NPA's from $40.5MM to i , oF 41% Deliver K since 12/31/11. ization” i d 9 ° falue hareholder performance” to i utilizing
Slide 30: Entity Wide Strategic Initiatives: Stock Value
HOLDINGS, INC. gai arrelationship driven org Entity , over growth in assets Increased the value of our stock by $7.36 per share, or 81%, since 12/31/11. + Continue to improve asset quality capitalization of our company by $38.1MM. organization” Imp! icing Value " utilizing “shareholder performan: "t
Slide 31: Entity Wide Strategic Initiatives: Analyst Coverage
mee a relationship driv * S, INC. Entity , over growth in assets Obtained analyst Continue to improve asset quality pee ue Se Deliver ees 's Small-Caj 4 rch, and initiated ein ee outreach. hareholder performance” to
Slide 32: Entity Wide Strategic Initiatives: Merger
IGS, INC. HOLD} airelationship driven orgai Entity , over growth in assets 5 Announced our merger with Continue to improve asset quality Communny NationallBaric hy 2/14/13 and eee Deliver | ition” 9 F a iy Anticipating se ey 5% EPS accretion in 2014. More closely align “shareholder performan izing i
Slide 33: Focus Areas for 2013
Focus Areas for 2013 Douglas M. Hultquist President Chief Executive Officer
Slide 34: Focus Areas for 2013 (1-4)
HOLDINGS, INC. arrelationship driven organization* Focus Areas for 2013 1. Meet EPS expectations 2. Integration of CNB 3. Hold onto our Net Interest Margin 4. Maximize SBA/USDA gains on loan sales
Slide 35: Focus Areas for 2013 (5-7)
iGS, INC. HOLDIN , arrelationship driven organization* Focus Areas for 2013 5. Maximize wealth management income 6. Improve liquidity in our stock 7. Drive down efficiency ratio
Slide 36: Focus Areas for 2013 (8-10)
HOLDINGS, INC. arrelationship driven organization* Focus Areas for 2013 8. Conversion of Series E preferred stock into common stoc! 9. Restructure holding company financing 10. Pay down Small Business Lending Preferred Stock
Slide 37: Our Basic Game Plan
Our Basic Game Plan Hire the best people supplied with the tools they need. Clients get exceptional service by satisfied and motivated employees. Shareholders Will Be Rewarded. This is Community Banking!
Slide 38: QCR Holdings stock quote snapshot
EXTRADE tion ah WHY E“TRADE INVESTING & TRADING @ RETIREMENT® EDUCATION® ay 08, 2010-07 PET aE Snapshot 9] (60) Qsymvottookap & Beeentauotes D het QCR HOLDINGS INC COM acRH: NASDAQ Feaneal:Repinalsanis [snapshot vst Research | | Fundsmentais. Earnings ||| Insider Activity ask See) Days ange 0,000 (0
Slide 39: Market & Limit Orders
Market & Limit Orders * Market Order It is important for + Limit Order limit order i y lower, and a sell limit limit order is not A limit ord it price. Whil or receive less, than a pre-determined price for a stock.
Slide 40: Welcome to QCR Holdings, Inc.
HOLDINGS, INC. Welenmet ‘a OCR Holdings, Inc!