Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (December 2014)
52 slides from Qcr's investor presentation, Dec 4, 2014
Slide 1: Financial Presentation
FINANCIAL PRESENTATION Cedar Rapids — December 2014 QCR HOLDINGS, INC. a relationship driven organization*
Slide 2: Slide 2
Slide 3: 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 lrrited to, descriptions of the financial condition
Slide 4: Forward-looking statements (continued)
(e) 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 mergers, acquisitions and divestitures
Slide 5: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES ‘These slides contain non-GAAP financial measures. For purpases 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 a
Slide 6: Table of Contents
Investment Rationale. Who We Are Cedar Rapids Bank & Trust QCR Holdings, Inc. Financial Information Focus Areas ............ Capital History and PI LAU, ts eaten neta Strategic Advantages ...................ccc Key Differentiators ... Appendix................. Table of Contents
Slide 7: Investment Rationale
nization Investment Rationale $2.45B asset bank holding company with critical mass in attractive and target rich markets in lowa (80%) and Illinois (20%) = Top 2 bank with 11% market share in the Quad Cities, lowa/lllinois and Top 4 in Cedar Rapids, lowa with 8% share = Quad Cities is the Intemation
Slide 8: Cedar Rapids Bank & Trust Senior Management
Cedar Rapids Bank & Trust Senior Management LARRY HELLING MITCHMCELREE DANANICHOLS JOHNRODRIGUEZ SHELLY STRELLNER President & CEO EVP, Specialty Finance ‘EVP, Chef Credit Officer EVP, Operations & Cashier «SVP, Private Banking ‘QCR Holings, ine e q GARY BECKER TRISH ELLISON KEVIN BRUNS: JAMES KLEIN
Slide 9: Cedar Rapids Bank & Trust Overview
Cedar Rapids Bank & Trust Overview CEDAR RAPIDS BANK & TRUST - SNAPSHOT September 14, 2001 September 28, 2001 February 3, 2003 June / July 2005, May 1, 2009 October 25, 2013 Total Assets # of Employees: CRBT is legally formed. CRBT opens to public. CRBT surpasses $100 Milion in assets. Opening of Br
Slide 10: Summary of Financial Results 2008-2014
Summary of Financial Results 2008-2014 ACTUALYTD ANNUALCEO Net interest income $12469 $15,258 §$15569 ««$15B57 $15,717 17.463 SI7821 $23,761 Non interest income 41394391 6099 5985 5612-6401 540d 7.205 Non-interest expense (10,116) (14,692, (12,324) (12,888) (12,260) (14,26 15,465 (20,620) Pre-tax pr
Slide 11: Total Consolidated Assets
Total Consolidated Assets IN MILLIONS OF DOLLARS. $900 $100
Slide 12: Total Consolidated Deposits
Total Consolidated Deposits IN MILLIONS OF DOLLARS. $700 $600 $500 $400 $300 $200 $100 $0 S 8 [] Dec.06 Dec.07 Dec.08 Dec.09 Dec.10 Dec.11 Dec.12 Dec.13 Sept.14
Slide 13: Cedar Rapids Bank & Trust Peer Analysis
Cedar Rapids Bank & Trust Peer Analysis US Bank National Assn Wells Fargo Bank Na Farmers State Bank Cedar Rapids Bank & Trust Hills Bank & Trust Bankers Trust Co Guaranty Bank & Trust Farmers & Merchants Savings Bank NXT Bank Bank of the West * Thousands of Dollars, Data inchides Linn County on¥ as
Slide 14: History of QCR Holdings, Inc.
History of QCR Holdings, Inc. Assets 28 of September 80, 2084 *DeNow Founded by Mike Bauer and Doug Hultquist - $14 Million IPO Quad City Bank & Trust ~ Currently $1.27 Billion in Assets Quad City Bancard Formed Cedar Rapids Bank & Trust* — Currently $822 Million in Assets (includes Community Bank &
Slide 15: Our Geography
Our Geography © Quad City Bank & Trust ~** @ Cedar Rapids Bank & Trust ee © Rockford Bank & Trust 4, @ m2 Lease Funds, LLC » , @ Community Bank & Trust oe =
Slide 16: Corporate Overview
Corporate Overview QCR Holdings, Inc. - Founded in 1993 Headquartered in Molin: ‘SYMBOL - QCRH $2.45 Billion in Assets $1.57 Billion in Loans $1.71 Billion in Deposits 13 Facilities Quad City Bank & Trust (5) Cedar Rapids Bank & Trust (2) Rockford Bank & Trust (2) m2 Lease Funds LLC (1) Community Ba
Slide 17: Top MSAs in Iowa and Illinois
ette ship driven organizatior Top 25 MSAs/ lowa and Illinois Mes ‘Chicago taperite-Bgin LIN ‘050011 m 2020 987.400 19% soren os4e Sait Lois, MO-L eam 136 oat 2708.74 os? 275 433 ‘Omaha-Couned Bute, NEA 2.187 74 20 398.104 430 e701 78? Dee Meines-Wt Dez Moines. 1A ‘3088 40 m 01313 538 0308 oar DDaven
Slide 18: Asset growth and CAGR
rides 199 evoag zro8q Lreea IN MILLIONS OF DOLLARS orsea CAGR 2008.2014 7.40% 60280 £ o o gn < ao 2 S = o a ic ij 3) g J rE 0280 40280 90220 so2ea 0280 covea zovea loved, 00220 6280 86280 e720 96280 e220 e280 CAGR 1994-2014 23.08% CAGR 1994-2007 32.26% $2,500 $2,000 $1,500 $1,000 $600 18
Slide 19: Consolidated Balance Sheet 2009-2014
Consolidated Balance Sheet 2009-2014 AsctDecembers1, 208 2 2 me 218 ‘eof Sop, 2014 (Gn thousands) AwoUNT—% AMOUNT. —% AMOUNT. 9% AMOUNT. % MOUNT. aNDUNT. Cen feel tr Herd sane ONAG TOT «COSTS MS«CTHOASS.SH«CTTAA«CTOETI. ae secuties S70s20 71% RABAT 29% RE ZITO HTN HK «NSEDTES 27H Netoensesses S12018
Slide 20: Consolidated Balance Sheet 2009-2014
Consolidated Balance Sheet 2009-2014 ‘As of December31, 2009 2010 zon Ex 2013 As of Sept30, 2014 (i frousande) MOUNT $2,450,596 4,778,646 10 $1,096,635 400% 21,966,640 100 152,008,030 100 $2,308,089 100 %
Slide 21: Consolidated Balance Sheet 2009-2014
ette Consolidated Balance Sheet 2009-2014 ‘As of December31, 2009 2010 zon Ex 2013 As of Sept30, 2014 introurande) ANwouNT anounr AMOUNT 5% AMOUNT AMOUNT AMOUNT TOTAL ASSETS $1,926,695 100% $1,966,640. -100: $23003,720 100% 400% $2,450,506. 100% Hebb rrp ti ett OR Te 5,638 400" 6,610 100% $2,099,499
Slide 22: Consolidated Balance Sheet 2009-2014
2 felationship driven organization’ Consolidated Balance Sheet 2009-2014 ‘As of December31, 2009 2010 zon Ex 2013 As of Sept30, 2014 (i frousande) AMOUNT AMOUNT AMOUNT aNounT ANDUNT i $4i¢79,646 100: 9 $1,968,610. 100: $23002,720 100 $7.095963 $00 $2,460,596 100 Noninterest-benring deposits $207,044
Slide 23: Summary of Financial Results 2009-2014
‘Net interest income Nonsnterest income Nominterest expense Pretat pre-provision Provision expense Income before taxes Income taxes Net income Lees: net income attributable to non-controing interests ‘Net income attributable to OCR Holdings, In. Less: preferred dividends [Not income attitutable to C
Slide 24: Summary of Financial Results 2009-2014
Hol IGS, INC. Summary of Financial Results 2009-2014 2009 010 2011 amis 20t (inthousands) Net income attributable to OCR Holding 682 14,998 11,960 "Includes bargain purchase gain on CNB acquction of81 8 millon and gains on CHB branch sles of 822 milion "inde sequin and data conversion cost related t
Slide 25: Summary of Financial Results 2009-2014
Summary of Financial Results 2009-2014 2009 010 2011 ais 2014 (inthousands) Diluted Earnings Per Share "Includes bargain purchase gain on CNB acquction of81 8 millon and gains on CHB branch sles of 822 milion "inde sequin and data conversion cost related to CNB aoquitin of 2 lon
Slide 26: Community National Bank (CNB) Transaction
Community National Bank (CNB) Transaction Community National Bank Founded in 1997 Headquartered in Waterloo, IA Resulting Proforma Fs Cedar Rapids Bank & Trust be Acquired by QCRH May 13,2013 ( COMMUNITY $ 822 Million in assets ° _ Conuneinity Nedonal Bank! $611 Million in deposits $277 Million in a
Slide 27: Stock Metrics
Stock Metrics 2009-03 2014 Stock Price —@TEV/Share 2009 2010 2011 2012 2013, Q12014 G2 2014 Q3 2014 ($046) $0.53. $0.92 $1.85 $2.08 $0.40 $0.45 $0.50
Slide 28: Stock Metrics
Stock Metrics HOLDINGS, INC. 2009-03 2014 lationship driven organization’ $19.00 $17.00 $15.00 $13.00 Stock Price $11.00 © TBV/Share $9.00 $7.00 2009 2010 2011 2012 2013, Q12014 G2 2014 Q3 2014 Diluted EPS ($046) $0.53. $0.92 $1.85 $2.08 $0.40 $0.45 $0.50 P/TBV Per Share = 105.50% P/E= 9.13 x LTM (a
Slide 29: Focus Areas for Improving Shareholder Value
ette a relationship driven organization” Focus Areas for Improving Shareholder Value Grow loans / leases Continue to improve our Net Interest Margin Maximize gains on SBA/USDA loan sales Grow Wealth Management income Drive down efficiency ratio as we work to achieve a 1% ROAA Continue to grow TCE or
Slide 30: History of Capital Transactions
Oct 1993, Dec 1996 Dec 1997 Nov 1998 Jun 1998 Sep 2001 Feb 2004 May 2004 Dec 2004 May 2005 Feb 2006 Nov 2006 Dec 2007 Feb 2008 Mar 2010 Jun 2010 Sep 2011 Now 2011 Jun 2012 May 2013 Mar 2014 Jun 2014 Jun 2014 History of Capital Transactions IPO of $14M in Common Stock # $10 per share eplit adjusted =
Slide 31: Capital Plan
Re Capital Plan * Continue to grow TCE organically, with a target of 6.5%. * Continue to leverage non-common sources of capital to benefit common shareholders. * Consider a capital raise for additional accretive acquisition opportunities. (Shelf Registration filed June 2014) ¢ Our capital plan is co
Slide 32: The Strategic Value of our Separate Charters
rR. The Strategic Value of our Separate Charters 3 distinct (yet similar) operating charters — able to customize solutions by market Managed by local veteran bankers, govemned by local Board of Directors, local decisions, local solutions, enhanced market specific knowledge 3 charters supported by QC
Slide 33: Key Differentiator: Group Operations
Key Differentiator: Group Operations ¢ Accounting — John Oakes « Customer Service/ltem Processing — Kathy Francque ¢ Deposit Operations - Beth Easterla and John Rodriguez ¢ Funds Management — John McEvoy «Human Resources -— Jill DeKeyser and Shellee Showalter ¢ Information Technology — Michael Wyffe
Slide 34: Key Differentiator: Correspondent Banking
Key Differentiator: Correspondent Banking * Uniquely positioned due to veteran Correspondent bankers on our team. * Competitively positioned with software, systems and processes. + Depth of product offerings: - Online Cash Management - Image Cash Letter System - Loan Participations - Bank Stock Fina
Slide 35: Key Differentiator: Wealth Management
rR. Key Differentiator: Wealth Management + As of September 30, 2014: Approximately $1.65 Billion in Trust (and related) accounts and $637 Million in Brokerage (and related) accounts. * Competitively positioned due to our veteran team of Wealth Management professionals * Uniquely positioned with sof
Slide 36: Key Differentiator: SBA-USDA Lending
Key Differentiator: SBA- USDA Lending SBA Loans Originated for the Fiscal Year Ending 9/30/14 - Quad City Bank & Trust — 8" in the state of lowa for lowa chartered banks (dollar volume) - Cedar Rapids Bank & Trust — 1* in the state of lowa for Iowa chartered banks (dollar volume) - Rockford Bank & T
Slide 37: Key Differentiator: m2 Lease Funds, LLC
Key Differentiator: m2 Lease Funds, LLC + Quad City Bank & Trust acquired 80% ownership August of 2005 + Effective September 2012, Quad City Bank & Trust owns 100% of m2 Lease Funds, LLC. + Income for m2 has grown at a 20% CAGR since 2006 Assets (in milions) Pre-Tax Earnings* Net Charge-offs to Leas
Slide 38: Thank You
Thank You For Your Time Today Questions
Slide 39: Appendix
QCR HOLDINGS, INC. Appendix
Slide 40: Quad City Bank & Trust Highlights - Quad Cities
uF INC. Quad City Bank & Trust Sirag Highlights - Quad Cities BAI Ni & ‘+The Rock Istand Arsenal isthe largest government-owned military weapons . ‘manufacturing arsenal in the United States John H. Anderson, President & CEO + Alcoa (Quad Cities) is the world's premier aerospace supply plant-the hub
Slide 41: Cedar Rapids Bank & Trust Highlights
Cedar Rapids Bank & Trust AR Highlights - Cedar Rapids BANK & + International Headquarters for Rockwet Coline + US. Headquarters fr Aegon USA + Downtown Revitalzation — Double Tree by Hiton Cedar Rapids Convertion Larry J. Helling, President & CEO Complex $1 44MM, 2 year project resulted in 100,000
Slide 42: Rockford Bank & Trust Highlights
Thomas D. Budd, President & CEO Assets: $347 Million (as of 9/30/14) Population: 343,245 Market Deposits: $6.1 Billion Ranked 8h wah 4.5% market share and over $230 Million in deposits in Rockford MSA Major Employers Rockford Public Schod District, ‘Swedish American Health Systerns Chrysler (BeWider
Slide 43: Community Bank & Trust Highlights
(Feommunrry NY een TRUST Stacey J. Bentley, President & CEO Assets: $164 Million® (as of 9/30/14) Population: 169,354 Market Deposits: $3.0 Billion Top 1Obbank with 4.0% market share and over $127 Milln in deposits inWaterloo ! Cedar Fale MSA Major Employers John Deere ‘Wheaton Franciscan Healthcare
Slide 44: Loan Portfolio Composition
[OLDINGS, INC. He 2 felationship driven organization’ IN MILLIONS OF DOLLARS TYP! Commercial & Industrial Non Owner Occupied Commercial Real Estate Ouner Occupied Commercial Real Estate Residential Real Estate Direct Financing Leases Installment and Other Consumer Commercial Construction/Land Develo
Slide 45: Peer Credit Analysis
ette a relationship driven organization” STITUTION Peer Group: Heartand Financial USA o. ‘Great Souther Banco, Fira Busey Comperation Erterpice Financial Services Corp Firs Francia Ceroraton Leland Financial Corporation MainSoure Financial Group o. (8 Financ ie 8. Bancorp. Hil Bancomperation wet swb
Slide 46: Charge-Off Analysis
ette Charge-Off Analysis cor rot Loan NcoNrtoant “Pus Leane—— NeOHI eR Loan 02045 tn) raster, Sur (R) sree ge0) cy) (CR HOLDINGS, INC. AND SUBSEIARIES: (20 Hogs. as pad tenia 269% 21aa oy tak avaTretoonpany sont ome vom0 2508 (ems apr Ban aneTuetconpany fed ns seast 26 econ tau ana TAstCongany sare
Slide 47: Securities Portfolio Snapshot
ette a relationship driven organization” Snapshot —As of 12.3143 Par \alue 005) Book lve 0005) Maret \aue 0006) realized Gan eze 00s) ‘Aegregite Gains @002) ‘ogra Lozees 002) Gainvtnce az Parent of ook hue “eld (Projected Speeds) ‘el (1 mont CPR) ‘Arcrage ie (Projected Speeds) Percetinfoniing Seouri
Slide 48: Consolidated Wholesale Funding
Brokered tine denosts Federal Home Loan Bank advances ‘Strudured repurchase agreements September 30,2014 QCR Holdings, Inc. Consolidated Wholesale Funding December 31,2013, (@otar aw cuts i trousars) $ 95841 $61,930 198,500 231350 130,000 130,000 September 30, 2014 December 31,2013 Washed Average ‘W
Slide 49: Executive Management Team
QCR Holdings, Inc. Executive Management Team OUR MISSION: 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 Back Row (tering) Rand Westlund y arlie Bullock Lary Heling John Ro
Slide 50: Executive Management Biographies
ette ship driven or DOUGLAS M.HULTQUIST, CPA President and ChietE xeative Otfoor 37 Years in Benking/ Financial Services TODD A. GIPPLE, CPA Enmcutive Vice President, CCliet Operating Offcer and Chief Financial Offcer| 29 Yeats in Benking/ Fiancia!Services JOHN H. ANDERSON President and Chief xecuiv
Slide 51: Slide 51
Slide 52: 3551 7th Street, Moline, Illinois
3551 7" Street Moline, Illinois 61265 www.gerh.com QCR HOLDINGS, INC.