Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (May 2012)
33 slides from Qcr's investor presentation, May 17, 2012
Slide 1: 2012 Financial Presentation
QCR HOLDINGS, INC. a relationship driven orga 2012 Financial Presentation
Slide 2: Forward-Looking Statements
HOLDINGS, INC. arelationship dri anization’ 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
Slide 3: Forward-Looking Statements - Continued
HOLDINGS, INC. arelationship dri anization’ 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, investm
Slide 4: Non-GAAP Financial Measures
HOLDINGS, INC. arelationship dri anization’ 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
Slide 5: Table of Contents
arelationship driven organi Table of Contents Who WE Ae... ....ccceeeeeseeeeeeeeees 6 Our Strategy........cceeeeee eee 9 Financlalsnaciwannanaaisas 11 Key Differentiators .............000 19 ADDPONGIX ccsscccccccescsccccosccsceracss 26
Slide 6: Corporate Overview
Corporate Overview Founded in 1993 Headquartered in Moline, IL SYMBOL —- QCRH $ 1.99 Billion in assets $ 1.30 Billion in deposits $ 1.21 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: 4.82 M
Slide 7: History of QCR Holdings, Inc.
HOLDINGS, INC. arelationship d 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 $566 Million in Assets 2005 Rockford Bank & Trust* — Currently $313 Million in Asset
Slide 8: Strategic Advantages
arelationship 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 Opera
Slide 9: Entity Wide Strategic Initiatives
HOLDINGS, INC. a 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
Slide 10: Top MSAs / Iowa and Illinois
HOLDINGS, INC. arelationship driven organization” Top 25 MSAs / lowa and Illinois 7m Median HI Growth CChicagootet Napenil, ILAN-WI s2eza8235 255 3227 9729019 136% $65,796 1651% Saint Louis, MO-L s7i7004 uae 965, 2351819 tot $57,102 ws ‘Omans-Couna lute, NEJA s217255 % 238 358,203 4a $50,323 wn es M
Slide 11: Summary of Financial Results 2007-2012
HOLDINGS, INC. arelationship driven organization Summary of Financial Results 2007-2012 Net interest income Non-interest income Non-interest expense Pretax pre-provision Provision expense Income before taxes Income taxes Income from continuing operations Income (loss) from discontinued operations Ne
Slide 12: Proxy Peer Comparisons
HOLDINGS, INC. arelationship driven organize Proxy Peer Comparisons QCR Holdings, Inc. acBT’ Assets $2.0 Billion $1.1 Billion Total Capital 13.3% TCE NIA Texas Ratio 19.5% NPAs/Assets 1.8% ROAA 1.0% ROAE 11.8% Efficiency 57.5% Price/Tangible Book NIA CRBT $566 Million 14.6% NIA 13.9% 1.5% 0.9% 9.5%
Slide 13: Strategic Issues Impacting Stock Price
HOLDINGS, INC. arelationship driven Strategic Issues Impacting Stock Price Low Tangible Common Equity Ratio —- More Common Shares? Lack of liquidity in our stock SBLF Capital of $40.1 Million — How Will It Be Redeemed? Asset Quality Questions — Have NPA’s Peaked? “Normalized” Earnings — When and Wha
Slide 14: QCR Holdings, Inc. Capital Structure
QCR HOLDINGS, INC. QCR Holdings, Inc. Capital Structure March 31, 2012 DIVIDENDS / INTEREST ‘Annually Quarterly Preferred F* — $40.1Mat 5.00% $2,004,500 $501,125 Preferred E** — $25.0Mat 7.00% 1,750,000 $437,500 Trust I $12.4M floating at 3.43% (3ML + 2.85%) $425,320 $106,330 Trust Ill $8.2M floatin
Slide 15: Total Consolidated Assets
HOLDINGS, INC. Total Consolidated Assets IN MILLIONS OF DOLLARS: CAGR 1994-2011 24.11% 0. CAGR 1994-2007 32.26% CAGR 2008-2011 7.43% SS oo $2,000 $1,750 $1,500 $1,250 1,000 $750 $500 $250 PPR ERG: Ba Dec-o1 Dec-05 Dee-06 Dec-07 Dee-1t Dec-03
Slide 16: Total Consolidated Deposits
HOLDINGS, INC. arelationship driven organiza\ 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 (2006-2012)
HOLDINGS, INC. A Closer Look: Total Consolidated Deposits (2006-2012) December 31,2006 Total $875.5 MM "Non Interest Bearing Demand $124.2 MM or 14% ‘Interest Bearing $334.0 MM or 38% sco's $417.3 MM or 48% RETAIL: $345.8 MM or 40% BROKERED: $71.4 MM or 8% December 31,2011 Total $1,205.5 MM "Non Int
Slide 18: Loan Portfolio Composition
QCR HOLDINGS, INC. Loan Portfolio Composition March 31, 2012 IN MILLIONS OF DOLLARS TYPE Dollar Mix rent Mix Commercial & Industrial $3527 29.2 % Non Owner Occupied Commercial Real Estate 348.0 28.8 Owner Occupied Commercial Real Estate 192.3 15.1 Residential Real Estate 103.5 as Direct Financing Le
Slide 19: Key Differentiator: Correspondent Banking
ion* 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 Stoc
Slide 20: Key Differentiator: Wealth Management
arelationship Key Differentiator: Wealth Management + As of March 31, 2012: Approximately $1.1 Billion in Trust (and related) accounts and $548 MM in Brokerage (and related) accounts. + Competitively positioned due to our veteran team of Wealth Management professionals + Uniquely positioned with sof
Slide 21: Key Differentiator: SBA - USDA Lending
HOLDING: arelationship Key Differentiator: SBA - USDA Lending + SBA Lending in 2011: - Quad City Bank & Trust - 4th in the state of Iowa for Iowa banks (dollar volume) - Cedar Rapids Bank & Trust - Ist in the state of lowa for lowa banks (dollar volume) - Rockford Bank & Trust - 10th in the state of
Slide 22: Key Differentiator: m2 Lease Funds, LLC
HOLDINGS, INC. 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 milons) Pre-Tax Eamings 2006 $530 3 675651 2007 $687 $1,421,142 2008 $797 $ 784,424 2009 $90.6 $ 855,679 2010 $854 $852
Slide 23: Stock Trading History
HOLDINGS, INC. ization QCR Holdings, Inc. Stock Trading History $25.00 $20.00 $15.00 $10.00 $5.00 13103 90103 1190108 6004 1191905 0105 1131706 90106 vavor erea07 1191108 e008 +0100 730109 1290 e010 sown ero trast zeae areata agora Trasing Summary for QCRH - Sources: NASDAQ Onne, IDC All iformation
Slide 24: Book Value of Common Stock vs. Market Value
mee: INC. Book Value of Common Stock Vs. Market Value $100 $90 $80 $70 60 $50 s40 $30 $20 so IN MILLIONS OF DOLLARS. Book Value —*—Market Value 2-83 ec-04 ec95 ec-96 ec-o7 ec-98 ec-99 ec-00 bec.ot 00-02 00-03 ec-04 Decos 00-06 ec.o7 ec-08 00-09 00-10 ec-tt
Slide 25: Thank You. Questions
Tnank,, YOu. OCR HOLDINGS, INC. Questions arelationship driven organization”
Slide 26: Appendix
HOLDINGS, INC. Appendix
Slide 27: Our Mission and 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. QCR Holdings, Inc. Executive Management Team LEFT TO RIGHT OCR Lany Helling Charie Cathie Whiteside John A John Engelbrecht B
Slide 28: Executive Management Team
HOLDINGS, INC. arelati nship driv 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
Slide 29: Peer Analysis Q1 2012
HOLDINGS, INC. arelationship driven organization Peer Analysis Q1 2012 auty! TCE! rn Leverage Capital Capital Loane/ —LLR/ Loans Texas NPAR) Avg, LR LLPY emelney Inetution ‘Teher Assets 00) os) oe) aver zse2 ay ras todo nae fast thas ena ak aah mass ane tne Tee Mean: 20s aga 00 th0e age ta57 1477 co
Slide 30: Peer Credit Analysis Graphs
QCR HOLDINGS, INC. Peer Credit Analysis Graphs Non-Performing Assets / Assets ISTITUTION. TICKER NPAs / ASSETS % NPAs / TOTAL ASSE Macatawa Bank Corporation oae woa7 West Suburban Bancorp, no. wre 549 asd Mercantile Bank Corpration ewe 544 ack Median Great Southam Bancarp ne see 300 3.00 CoB Financ
Slide 31: Charge-Off Analysis
HOLDINGS, INC. arelationship driven organization Charge-Off Analysis e-off Analysis - Cumulative Effect During Credit ‘nae 20208 (000) 2407 (000) 1224.0), 2007261208 (000) oo ‘OCR HOLDINGS, INC. AND SUBSIDIARIES: ‘0 cy Bark ar Ts Company ‘8462 earn 20% 2a PROXY PEER GROUP: Hearted Fano USA. ne sasr
Slide 32: QCR Holdings, Inc. Peer Credit Quality
QCR HOLDINGS, INC. arelationship driven organize QCR Holdings, Inc. Peer Credit Quality NCOs / Average Loans Provision Expense / NCOs 200 500 —a0RH —*Median Sacre Median 150 ais 1.00 250 0.50 5 0.00 o ee ee ke eRe eB eee 8 kg gb GE 5 Texas Ratio 50 —sacRH Median 40 at . 20 10 eeeeee2e8 Source: SNL F
Slide 33: Consolidated Securities Portfolio
HOLDINGS, INC. Cantal cates Consolidated Securities Portfolio Snapshot As of 1231.11 Sector Review — As of 12.31.11 Par Vali (0008) soerr 00k Value (0005) 88419 Book ae Tolal_—GaLoes Book Yiekd Rape Term Markt vaue (0008) se3a77 Aooncy ined) ae 7% aro 208 73 Urratzed Gaross (008) ze) emo (Fee) szest