Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Shareholder Meeting (May 2011)
32 slides from Qcr's shareholder meeting presentation, May 4, 2011
Slide 1: Welcome: 2011 Annual Meeting of Stockholders
WELCOME 2011 Annual Meeting of Stockholders May 4, 2011 James J. Brownson, Chairman
Slide 2: QCR Holdings, Inc. agenda
QCR Holdings, Inc. Brief Financial Review Key Industry Issues QCR Holdings, Inc. Strategic Direction
Slide 3: SEC Disclosure
SEC Disclosure Some of the information we will be providing today falls under the guidelines for forward-looking statements as defined by the SEC. As part of these guidelines, we must point out that any statements made during this meeting that discuss our hopes, beliefs, expectations or predictions
Slide 4: Summary of Financial Results 2006 - 2010
Summary of Financial Results 2006 - 2010
Slide 5: NPAs / Total Assets
Source: SNL Financial NPAs / Total Assets 4.34% 2.73% 2.36 %
Slide 6: Reserves / Loans
Source: SNL Financial Reserves / Loans 2.79% 1.74% 1.79%
Slide 7: NCOs / Average Loans
Source: SNL Financial NCOs / Average Loans .87% 1.90% .24%
Slide 8: QCR Holdings, Inc. Subsidiary Locations
Rockford, IL Quad Cities, IA & IL Cedar Rapids, IA Brookfield, WI QCR Holdings, Inc. Subsidiary Locations
Slide 9: First Quarter 2011 Market Composites
First Quarter 2011 Market Composites* Total Return Quarter One Year Stocks Dow Jones Industrial Average 7.07% 16.49% Standard & Poor 500 5.92% 15.65% Large-Cap Core 5.41% 13.47% Multi-Cap Core 6.07% 16.69% U.S. Diversified Equity Fund Average 6.04% 17.65% Bonds Short-Intermediate U.S. Government 0.1
Slide 10: QCR Holdings Closing Stock Price and Volume
QCR Holdings, Inc. Closing Stock Price and Volume Last 3 years
Slide 11: Closing Price - QCR Holdings and NASDAQ Bank Index
Closing Price - QCR Holdings, Inc. and NASDAQ Bank Index Last 3 years
Slide 12: Closing Price - QCR Holdings and S&P Index
Closing Price - QCR Holdings, Inc. and S&P 500 Index Last 3 years
Slide 13: Consumer De-Leveraging Has Continued
Consumer De-Leveraging Has Continued Mortgage Debt & Home Equity as a % of Disposable Personal Income 160% 1% 120% 10% 80% on wn an —*— Total Housenold Debt mmmeMorigageDebt me Home Equiy ‘Source: KBW Research and Federal Reserve
Slide 14: Credit Deterioration
Credit Deterioration 45 40 as 30 ] 25 i 20 ] 1s 10 os a0 (ote: Average NPAs to Assets of al pubiety traded banks at 4210, ‘Sowoe: KBW Reseach snd SNL Financial 1001 4a01 1010 4010
Slide 15: Non-Performing Assets Have Shown Signs of Stabilization
Non-Performing Assets Have Shown Signs of Stabilization Non-Performing Assets to Average Loans were on the rise for the banking industry from 1Q06 — 1Q10. Non-Performing Assets to Average Loans (%) 6.0% 5.0% 40% 3.0% 20% 10% 0% SRESSREEERESSRRES TEESE SS ‘Note: Average NPAS fo Average Loans of al pu
Slide 16: Deposit Growth Has Slowed Dramatically
Deposit Growth Has Slowed Dramatically 11.1% bid a1% 1% 86% 86% Tix) To 8% 8% 47% an% * 22% a o% 1993 1994 1995 1996 1997 1998 1999 2000 1001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Slide 17: How Much TARP is Left?
i aie Sa aS SSS | Le aS How Much TARP is Left? # KBW TARP TRACKER: Companies Initial TARP Investment 707 204.9 Complete Repayments 116 (178.6) CDCI Conversions 28 (0.4) Partial Repayments 13 (0.2) TARP Losses Remaining TARP Investment TARP Warrant Dispositions: Repurchased Auctioned 24
Slide 18: Bricks & Mortar
Bricks & Mortar Hof Offices 79 FDIC-insured Com'l Bnks: # of Institutions & Total Offices (U.S. & Other Areas) Institutions 1990 1992 1992 1993 1984 1995 1996 1997 1996 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 12,500 11,875 11,250 10,625 10,000 9375 8,750 8,125 7,500 6,875 6,250 S
Slide 19: FDIC Opportunity Pipeline Builds
aaa oS | eT FDIC Opportunity Pipeline Builds National Tr in FD ist Number of insttsions ° a 3 so so 3 200s 200520062007 2008 200001 2008G2 200009 200904 20101 201002 201009 201008 ‘Source: SNL Financial and FDIC. 34
Slide 20: Recent Bank & Thrift Failures
Recent Bank & Thrift Failures 73 316 Bank & Thrift Failures (January 2009~ February 2011)
Slide 21: Banks in Iowa and Missouri experienced greatest asset growth
Banks in lowa and Missouri experienced the greatest asset growth in the region in 2010 Wisconsin Banking Industry Overview Asset Growth 200904 - 201004 Illinois and Neighboring States* 4.0% 3.496 3.5% 2.0% 2.0% 4 1.2% ; g 0.0% ' - + 5 Minos Missouri lowa Minnesota < -2.0% “1.7% 2.3% 4.0% oem Total a
Slide 22: Earnings improved in all states in the region
Earnings improved in all states in the region, with the greatest dollar improvement in Illinois and Michigan Net Income Net Income Illinois and Neighboring States 2010Y -714- 487 318 agn.n Bal nos Missouri Wisconsin towa Minnesota Indiana Net Income (SM) -826 8 oe 2009-2010 Ne a10% % Change “Exclude
Slide 23: Loans and leases declined across the entire region
Loans and leases declined across the entire region, with the greatest drop in Michigan Growth in Loans and Leases Growth in Loans and Leases Illinois and Neighboring States* 2010Y C) ; ‘on -500 -325 -1,000 |_i— U a “1500 1 399 2,000 + “1,935 “1,877 -2,500 + -2375 -3,000 + ae, -2,840 2009-2010 + “1%
Slide 24: Deposit growth most significant in Missouri
Deposit growth was most significant in Missouri, up more than $5 billion from 2009 to 2010 Growth in Deposits 6,000 5,553 Growth in Deposits(SM) 8 Mlinois Missouri -1,000 2008 - 2010 9 ‘% Change &% a *Excludes institutions with >$20B assets Source: SNL Financial * SNLFinancial Growth in Deposits Ill
Slide 25: Banks in Michigan had highest non-performing assets
Banks in Michigan had the highest levels of non-performing assets in the region NPAs/Total Assets NPAs / Total Assets Illinois and Neighboring States* 2010Y 8.00 756 7.00 6.00 + 4 g 2 5.00 + } 3 4.26 441 maid i 3 4.00 + Fa 297 € 3.00 + 230 & 2.00 +—] . iran - - 1.00 + - 0.00 inois Missouri Wisconsin
Slide 26: Proxy Peer Group
Source: SNL Financial. Data for the quarter ended 12/31/2010 (1) Data as of 3/31/2011 Proxy Peer Group
Slide 27: Proxy Peer Group - Headquarters Map
Source: SNL Financial, MapPoint COBZ CVBF OKSB ATLO WTBA HBIA QCRH MBR EFSC PNFP HTLF BUSE BYLK MSFG LKFN HBNC OSBC TAYC MBFI MCBC MBWM Proxy Peer Group - Headquarters Map
Slide 28: Peer Comparisons
QCRH Average Median Assets $1.8 Billion $ 3 Billion $2.6 Billion Total Capital 13.7% 14.3% 15.2% TCE 3.56 6.38 6.87 Texas Ratio 33.6 58.8 35.3 NPAs/Assets 2.7 4.3 3 ROE 5 (7) 6 Efficiency 68 64 64 Price/Tangible Book 0.6 1.4 1.4 Peer Comparisons
Slide 29: Book Value Per Share vs. Market Value Per Share
Book Value Per Share vs. Market Value Per Share 46.80%
Slide 30: Issues Impacting Market Value Per Share
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? • Low Trading Volume - Difficult for New Shareholder
Slide 31: QCR Holdings' Strategic Direction
QCR Holdings’ Strategic Direction • Tell the Story: – Very Positive Asset Quality Results – Grow TCE and Fund Treasury Capital without Common Equity Raise. – Focus on Growing EPS Faster than we Grow Assets – Expanded Investor Relations Program to Attract New Shareholders • Execute on what is Possibl
Slide 32: Thank You.
Thank You. Thank you for your continued support.