Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (March 2013)
37 slides from Qcr's investor presentation, Mar 19, 2013
Slide 1: 2012 Financial Presentation
2012 Financial Presentation
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 (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 risks o
Slide 4: Non-GAAP Financial Measures
Hol IGS, INC. 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
Slide 5: Table of Contents
arelationship driven organi C R HOLDINGS, INC. Table of Contents WHO WE At eb sciccncceereniseesccesanecs 6 OUK Strategy sccsesscesceveccresscececs 12 Financials... 13 Key Differentiators ...............5 21 ABBONGIKssccrcrscornnesserscasans 28
Slide 6: Corporate Overview
C R HOLDINGS, INC. arelationship dri Corporate Overview Founded in 1993 Headquartered in Moline, IL ‘SYMBOL - QCRH $2.09 Bil $ 1.37 Billion in deposits $ 1.27 Bil 10 Facilities Quad City Bank & Trust (6) Rockford Bank & Trust (2) Cedar Rapids Bank & Trust (2) m2 Lease Funds LLC (1) Shares Outstandin
Slide 7: Top MSAs / Iowa and Illinois
HOLDINGS, INC. Top 25 MSAs / lowa and Illinois Median Household Projected Median 953 3 Des Meines West De Moines, 1A 13388 82 2 578.175 731 55390 233 joie Rock Wand lL 7488 39 153 090 45.169, 2095 Peat, 5655 a 108 381287 213 ast 148 Rocker It 5981 2 101 350.05 495 2300 1892 ‘Ceca Rapids, A 5141 8 10
Slide 8: Quad City Bank & Trust
HOLDINGS, INC. Quad City Bank & Trust Mite. John H. Anderson, President & CEO Assets: $1.18 Billion Population: 380,829 Market Deposits: $7.3 Billion ‘Davenport, Moline, Rock Island MSA — located on the Mississippi River Major Employers Rock Island Arsenal Deere & Company Genesis Health Systems Trin
Slide 9: Cedar Rapids Bank & Trust
HOLDINGS, INC. arelation ipdri orga Cedar Rapids Bank & Trust mi Larry J. Helling, President & CEO Assets: $626 Million Population: 260,153 Market Deposits: $4.7 Billion Cedar Rapids MSA Major Employers Rockwell Collins ‘Aegon USA St. Lukes Hospital Mercy Medical Center Whirlpoo! Corporation Kirkwoo
Slide 10: Rockford Bank & Trust
HOLDINGS, INC. arelation ipdri Rockford Bank & Trust seceegeo ae Thomas D. Budd, President & CEO Assets: $314 Million Population: 359,336 expected to grow to 852,000 by 2030) Market Deposits: $5.2 Billion Rockford MSA Major Employers Rockford Public School District ‘Swedish American Health Systems C
Slide 11: Strategic Advantages
Hol IGS, INC. Strategic Advantages + 3 distinct (yet similar) operating charters — able to customize solutions by market + Managed by local veteran bankers, governed by local Board of Directors, local decisions, local solutions, enhanced market specific knowledge + 3 charters supported by QCRH Group
Slide 12: Entity Wide Strategic Initiatives
Hol IGS, 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 Con
Slide 13: Summary of Financial Results 2007-2012
C R HOLDINGS, INC. arelationship driven organization’ Summary of Financial Results 2007-2012 2007 2008 2009 2010 2011 2012 Net interest income $44,623 $50,662 $49,864 $54,145 $57,649 'Non-interest income 13991 1854718406 17,462 «16,621 Non-interest expense (35.734) (42,334) (46,937) (48,549) (60,993
Slide 14: Proxy Peer Comparisons
HOLDINGS, INC. | arelationship. organi Proxy Peer Comparisons Assets Total Risk-Based Capital Ratio TCE Texas Ratio NPAs/Assets ROAA ROAE Efficiency Price/Tangible Book QCR Holdings, Inc. QcBT 4.0% NIA 14% 1.0% 71.2% 60.8% 174% NA CRBT $626 Million 12.9% N/A 13.5% 1.3% 1.0% 14.1% 57.5% N/A RBT $314
Slide 15: Strategic Issues Impacting Stock Price
Strategic Issues Impacting Stock Price Low Tangible Common Equity Ratio More Common Shares? Lack of liquidity in our stock SBLF Capital — After Partial Redemption in Q2 2012, How Will Remaining $29.9 MM Be Redeemed? Asset Quality Questions — Have NPA’s Peaked? “Normalized” Earnings — When and What?
Slide 16: QCR Holdings, Inc. Capital Structure
HOLDINGS, INC. arrelationship driven organization* QCR Holdings, Inc. Capital Structure December 31, 2012 DIVIDENDS / INTEREST Preferred F* — $29,0M at §.00% Preferred E“* — 525.0M at 7.00% Trust Il $12.4M floating at 3.21% (2ML + 2.85%) Trust Ill $8.2M floating at 3.21% (@ML + 2.85%) Trust IV $5.2M
Slide 17: Total Consolidated Assets
C R HOLDINGS, INC. arelationship driven o Total Consolidated Assets IN MILLIONS OF DOLLARS CAGR 1994-2012 24.77% CAGR 1994-2007 32.26% CAGR 2008-2012 6.86% $2,250 $2,000 $1,750 $1,500 $1,250 $1,000 $750 $500 $250 $0 Dec 94 Dee. Dee.96 bec 97 Dec.98 Dec.99 Dec.00 ec.02 Dec.03 Dec. Dec.os Dec.06 Decor
Slide 18: Total Consolidated Deposits
C R HOLDINGS, INC. arelationship driven o Total Consolidated Deposits $200 j IN MILLIONS OF DOLLARS Dec.o4 Dec.95 Dec.96 Dec.97 Dec.98 Dec.99 Dec.00 Dec.0t Dec.o2 Dec.03 Dec.o4 Dec.05 Dec.06 Dec.07 Dec.08 Dec.09 Dec.10 Dec.11 Dec.12
Slide 19: A Closer Look: Total Consolidated Deposits (2006-2012)
HOLDINGS, INC. arelationship driven organizat A Closer Look: Total Consolidated Deposits (2006-2012) December 31, 2006 Total $875.5 MM *Non intrest Bearing Demand $124.2 MM or 14% “Interest Bearing $334.0 MM or 38% scp's $417.3 MM or 48% RETAIL: $345.8 MM or 40% BROKERED: $71.4 MM or 8% December 31,
Slide 20: Loan Portfolio Composition
R HOLDINGS, INC. Loan Portfolio Composition December 31, 2012 IN MILLIONS OF DOLLARS 1 Commercial & Industrial $ 394.2 31% Non Owner Occupied Commercial Real Estate 3441 7 Owner Occupied Commercial Real Estate 204.9 16 Residential Real Estate 115.6 9 Direct Financing Leases 103.7 8 Installment and O
Slide 21: Key Differentiator: Correspondent Banking
Hol IGS, INC. 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 -
Slide 22: Key Differentiator: Wealth Management
Hol IGS, INC. Key Differentiator: Wealth Management + As of December 31, 2012: Approximately $1.1 Billion in Trust (and related) accounts and $568 Million in Brokerage (and related) accounts. + Competitively positioned due to our veteran team of Wealth Management professionals + Uniquely positioned
Slide 23: Key Differentiator: SBA - USDA Lending
Key Differentiator: SBA - USDA Lending + SBA Loans Originated for the Fiscal Year Ending 9/30/12: - Quad City Bank & Trust - 8th in the state of Iowa for Iowa chartered banks (dollar volume) - Cedar Rapids Bank & Trust - Ist in the state of Iowa for Iowa chartered banks (dollar volume) - Rockford Ba
Slide 24: Key Differentiator: m2 Lease Funds, LLC
ey Hol IGS, INC. Key Differentiator: m2 Lease Funds, LLC * Effective September 2012, Quad City Bank & Trust now owns 100% of m2 Lease Funds, LLC * Quad City Bank & Trust acquired 80% ownership August of 2005 Assets (in milions) Pre-Tax Earnings 2008 $530 3 675,651 2007 $687 $121,142 2008 $797 s 7844
Slide 25: Stock Trading History
QCR Holdings, Inc. Stock Trading History $25.00 ) oe ace $20.00 / 7 a $15.00 Z se vie $10.00 $5.00 103 6730103 ‘190108 6120004 revs 6790005 119106 20 savor 62907 vas 6720108 1190108 6730109 11290 6790110 sewn 60 wou ers012 orsor12 saewie Trading Sunmary for OCRH - Sources: NASDAO nine, IDC Ad infoma
Slide 26: Book Value of Common Stock Vs. Market Value
Book Value of Common Stock Vs. Market Value IN MILLIONS OF DOLLARS: 100) $901 Book Value Market Value | | = | |
Slide 27: Thank You
Thank, YOu. Bone Questions
Slide 28: Appendix
arel Appendix
Slide 29: Executive Management Team
LEFT TO RIGHT Back Row (ending Rand Westlund Larry Heling Doug Huttquist Tom Budd Bill Tank Todd Gipple John Rodriguez Front Row (eat) John Engelbrecht Michael Wyftels QER Holdings, Inc. Executive Management Team OUR MISSION: QCR Holdings, Inc. will be the premier provider of financial services to b
Slide 30: Executive Management Team
Executive Management Team DOUGLAS M. HULTQUIST, CPA President and Chief Executive Officer 36 Years in Banking/Financial Services TODD A. GIPPLE, CPA Executive Vice President, Chief Operating Officer and Chief Financial Officer 27 Years in Banking/Financial Services JOHN H. ANDERSON President and Chi
Slide 31: History of QCR Holdings, Inc.
History of QCR Holdings, Inc. 1993 Founded by Mike Bauer and Doug Hultquist 1994 Quad City Bank & Trust* — Currently $1.18 Billion in Assets 2001 Cedar Rapids Bank & Trust* — Currently $626 Million in Assets 2005 Rockford Bank & Trust* — Currently $314 Million in Assets 2005 Quad City Bank & Trust a
Slide 32: Peer Analysis Q4 2012
Hol IGS, INC. arelationship driven organi Peer Analysis Q4 2012 catty Toes com “*Y9 capt capa! Loans LUR/ Leane Teas PAS Ave, LR LPY Satine ‘Asses TA flo flo Rate Rat Owpouts Loma +OREO flo Atty Leane NPAL NGO ROARK OAS NM Rao rattan Tewr Awe 0) o_o) ewe) at Sarwar, soc 3050021795 He oar 1522 N647 7
Slide 33: Peer Credit Analysis Graphs
HOLDINGS, INC. Peer Credit Analysis Graphs Non-Performing Assets / Assets INSTITUTION TICKER NPAs ASSETS % NPAs Peer Group: Heartand nancial USA, ne. ane 208 380 Creat Southem Banco, he. see 348 Fist Busey Corparaton euse 167 = Eniepise Financial Sovies Comp FSC 198 7s Lakeland Financial Corporation
Slide 34: Charge-Off Analysis
HOLDINGS, INC. arelationship driven organi Charge-Off Analysis ‘200. 201204 200) sasor 00) "23407 (9) 2007201204 (00) cs ‘ack HOLDINGS, INC. AND SUBSIDIARIES: ‘ce Holos. ne sno09 sc0202 3208 v2.00 2e08 (ud ty Bani and we Company wwsst ert 200% saat 2am (Coe Rapids Bet and Tat Conan ome ro 350% senge
Slide 35: QCR Holdings, Inc. Peer Credit Quality
HOLDINGS, INC. arelationship driven organizatior QCR Holdings, Inc. Peer Credit Quality NCOs / Average Loans Provision Expense / NCOs ws mb} mi » | Source: SNL Financ 12/31/12 4o08 4009 soto aon 4on2 as
Slide 36: Consolidated Securities Portfolio
HOLDINGS, INC. QcR Holdings, Ine Consolidated Securities Portfolio Snapshot As of 234.41 sof 231.11 Par Value (000s) $51,617 peace Beck Vv 08) sssuto ook Vee % Tol_—Gainlons Book Yil_Rapice Tem set 9 sour own (ed “sea ——C 73 Seite 8) an wo (Fae eee tis ar a7 eee te Capt Fad we o% @ sa 70 Cates x Pao
Slide 37: Additional Information about the Merger and Where to Find It
C R HOLDINGS, INC. the Merger and Where to Find I Additional Information about t. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities. In connection with the proposed merger, QCR Holdings will file with the Securities and Exchange Commission