Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (February 2012)
31 slides from Qcr's investor presentation, Feb 6, 2012
Slide 1: QCR Holdings, Inc.
R » INC. HOLDINGS.
Slide 2: Forward-Looking Statements
wt INC. 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 co
Slide 3: Forward-Looking Statements - Continued
wt INC. FORWARD-LOOKING STATEMENTS - Continued (ix) 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
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
wk INC. arrelationship driven organization” Table of Contents WhO We Are.........ccesesesrereeeerees 6 Our Strategy: sssccssissssssssssvcrsases 9 Rinanclals sececttent-sarsereterriers 11 Key Differentiators ..............0 19 Append Miecccmnnmnrnnen 25
Slide 6: Corporate Overview
wt INC. Corporate Overview Founded in 1993 Headquartered in Moline, IL SYMBOL - QCRH $ 1.97 Billion in assets $ 1.21 Billion in deposits $ 1.20 Billion in loans 10 Facilities Quad City Bank & Trust (5) Rockford Bank & Trust (2) Cedar Rapids Bank & Trust (2) m2 Lease Funds LLC (1) Shares Outstanding:
Slide 7: History of QCR Holdings, Inc.
wt INC. arelationship di History of QCR Holdings, Inc. 1993 Founded by Mike Bauer and Doug Hultquist 1994 Quad City Bank & Trust* — Currently $1.11 Billion in Assets 2001 Cedar Rapids Bank & Trust* — Currently $560 Million in Assets 2005 Rockford Bank & Trust* — Currently $294 Million in Assets 2005
Slide 8: Strategic Advantages
nck INC. 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 share in Quad
Slide 9: Entity Wide Strategic Initiatives
wQt INC. Entity Wide 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 SBLF Capital without the need for a dilutive common equity raise Continue
Slide 10: Top MSAs / Iowa and Illinois
HOLDINGS, INC. arrelationship driven organization’ Top 25 MSAs / lowa and Illinois Projected Median Projected Me (Chicago-ltet Napersl, LAN. s2o2a2a 285 az7 720910 126% $65,706 1657% ‘Set Lous, MOA s717004 we 8s 281.619 194 57.102 233 ‘Oman Counc Bus, NEA 8217255 % 26 358,203, 4a 3601328 an ee Moine
Slide 11: Summary of Financial Results 2006-2011
HOLDINGS, INC. arrelationship driven organizatioi Summary of Financial Results 2006-2011 pcr yTo Net interest income Non-interest income Non-interest expense Pre-tax pre-provision Provision expense Income before taxes Income taxes Income from continuing operations. $29,896 $34,352 $44,623 $50,662 $4
Slide 12: Proxy Peer Comparisons
R HOLDINGS, INC. arrelationship driven organiza Proxy Peer Comparisons Assets Total Capital TCE Texas Ratio NPAs/Assets ROAA ROAE Efficiency Price/Tangible Book QCR Holdings, Inc. aceT* $1.9 Billion $1.1 Billion 13.2% NIA 22.3% 2.1% 0.8% 9.4% 61.0% NIA NOTE: Data as of and for the quarter ended Sept
Slide 13: Strategic Issues Impacting Stock Price
nck INC. arelationship driven o1 Strategic Issues Impacting Stock Price Low Tangible Common Equity Ratio - More Common Shares? SBLF Capital of $40.1 Million — How Will It Be Redeemed? Asset Quality Questions — Have NPA’s Peaked? “Normalized” Earnings — When and What? Where Will Growth Come From?
Slide 14: QCR Holdings, Inc. Capital Structure
R HOLDINGS, INC. arrelationship driven organization” QCR Holdings, Inc. Capital Structure December 31, 2011 DIVIDENDS / INTEREST Preferred F* — S40.1Mat 5.00% Preferred E ** —$25.0M at 7.00% Trust Il $12.4M floating at 3.22% (3ML + 2.85%) Trust Il $8.2M floating at 3.22% (3ML + 2.85%) Trust IV $5.2M
Slide 15: Total Consolidated Assets
Total Consolidated Assets IN MILLIONS OF DOLLARS CAGR 1994-2011 24.11% CAGR 1994-2007 32.26% CAGR 2008-2011 7.43% Se $2,000 $1,750 $1,500 on $1,250 F ae $1,000 a | | $750 _— $500 $250 885 8 e8eses8 888858808 * ¢ § $3 3333383 3 «$$ 8 S$ 8 3 3 83 8 3 8 8 $ 8 8 8 $ $ $ 8 8B 8 66 6&8 &6&& &68& 6&8 &&6&
Slide 16: Total Consolidated Deposits
relationship driven organization” Total Consolidated Deposits IN MILLIONS OF DOLLARS $1,400 $1,200 $1,000 $800 $600 $400 $200 so
Slide 17: A Closer Look: Total Consolidated Deposits (2006-2011)
R HOLDINGS, INC. arrelationship driven organization’ A Closer Look: Total Consolidated Deposits (2006-2011) December 31,2006 Total $875.5 MM ‘Non Interest Bearing Demand $124.2 MM or 14% ‘ntorest Bearing $334.0 MM or 38% co's $417.3 MM o 48% RETAIL: $345.8 MM or 40% BROKERED: $71.4 MM or 8% December
Slide 18: Loan Portfolio Composition
R HOLDINGS, INC. treba Loan Portfolio Composition December 31, 2011 IN MILLIONS OF DOLLARS TYPE Dollar Mix Percent Mi Commercial & Industrial $ 3508 29.3 % ‘Non Owner Occupied Commercial Real Estate 349.6 29.2 ‘Owner Occupied Commercial Real Estate 167.8 14.0 Residential Real Estate 98.1 82 Direct F
Slide 19: Key Differentiator: Correspondent Banking
wt INC. Key Differentiator: Correspondent Banking + Uniquely positioned due to veteran Correspondent bankers on our team. + Competitively positioned with software, systems and process + Depth of product offerings: - Online Cash Management - Image Cash Letter System - Loan Participations - Bank Stock
Slide 20: Key Differentiator: Wealth Management
Key Differentiator: Wealth Management + As of December 31, 2011: Approximately $1.1 Billion in Trust (and related) accounts and $479 MM in Brokerage (and related) accounts. +» Competitively positioned due to our veteran team of Wealth Management professionals + Uniquely positioned with software, sys
Slide 21: Key Differentiator: m2 Lease Funds, LLC
nck INC. arelationship driv Key Differentiator: m2 Lease Funds, LLC + 80% Ownership by Quad City Bank & Trust / 20% Ownership by CEO John Engelbrecht + Acquired August of 2005 Leased Assets (in millions) Pre-Tax Eamings 2006 $53.0 S$ 875,651 2007 $68.7 $1,421,142 2008 $79.7 S$ 784424 2009 $90.6 $855
Slide 22: Stock Trading History
QCR Holdings, Inc. Stock Trading History $25.00 $20.00 $15.00 $10.00 $5.00 EXPRESS AND IMPLIED WARRANTIES OF ANY KIND AND MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, TO ANY PERSON OR ENTITY, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR P
Slide 23: Book Value of Common Stock Vs. Market Value
wk INC. arrelationship driven organization” Book Value of Common Stock Vs. Market Value IN MILLIONS OF DOLLARS. $100 $90 "Book Value ™Market Value $80 $70 $60 $50 | sto $30 4 $20 4 $10 so 3 8 § § 8 & € F § F§ F FF F BF Be Fs 8 @ @ § 8 § § § € & & § FG & & GES
Slide 24: Thank You. Questions
Tnank, YOu. HOrDINGS, IN. Questions
Slide 25: Appendix
Appendix
Slide 26: Our Mission
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 SEATED ROW 1 SEATED ROW2 Bill Tank QCR Holdings, Inc. Executive Management Team
Slide 27: Executive Management Team
wQt INC. 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 Presiden
Slide 28: Peer Analysis 2011 Q3
HOLDINGS, INC. arelationship driven organization Peer Analysis 2011 Q3 [auity/ TCE Cnn Leverage apt Copal Loans! LAR Loans Tense MPAA Avg. LR! ‘Aaaets TA Rao. Rao Rao. Rato Deposits ane + OREO Ratio Attts Loone PAE neteton Teter awete| | u) 00) ex) os) 9) | cow) www ov Finn Com. ever sma) | sar a7 o
Slide 29: Peer Credit Analysis Graphs
R HOLDINGS, INC. arrelationship driven organization’ Peer Credit Analysis Graphs Non-Performing Assets / Assets INSTITUTION TICKER NPAs /ASSETS.% Peer Group: (01 Secand Bancorp, see 20 ‘Southwest Bancorp, inc. ‘OksB m4 a ‘Macatawa Bank Corporation mcec on Laced ercorte Bancorp, eR eo 40% Baya Com en
Slide 30: Charge-Off Analysis
HOLDINGS, INC. arrelationship driven organization Charge-Off Analysis aso) 9 one) 0) {ck HOLDINGS, INC. AND SUBSIDIARIES: OER Holger. 20896 306900 BH e200 a ‘uns cy Barkan oat Company 14320 wae nm a ‘Gada Rags a rT Coan 5085 man 3 ae a ‘ocr ar and Yu Company 208 90203 s§ maz0 Fy PROXY PEER GROUP: {M
Slide 31: QCR Holdings, Inc. Peer Credit Quality
R HOLDINGS, INC. arrelationship driven organizati QCR Holdings, Inc. Peer Credit Quality NCOs / Average Loans Provision Expense / NCOs —eacr —e—Peerttean -OCRH —*—Poorhean see 500.0% 400.0% 20% 300.0% 20.0% aa 100.0% 0.0% 0.0% Ton TO e@ocRH —+—PeerMean 150.0% 120.0% 900% 600% 300% 00% 200804 200001