Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (February 2016)
39 slides from Qcr's investor presentation, Feb 23, 2016
Slide 1: QCR Holdings, Inc. February 2016
HOLDINGS, INC. February 2016
Slide 2: Forward-Looking Statements
FORWARD-L “target,” “potential,” “focus,” “may; “could,” pect, ‘anticipate,’ uncertainties.
Slide 3: Forward-Looking Statements - Continued
FORWARD-LOOKING STATEMENTS - Continued Commission
Slide 4: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES GAAP financial measure.
Slide 5: Corporate Overview
CORPORATE OVERVIEW SDAQ - QCRH Russell 2000” Index Member as of June 30, 2015, $2.6 Billion in Assets $1.8 Billion in Loans $1.9 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 Bank & Trust (3) Sha
Slide 6: May 2015 Equity Offering Highlights
MAY 2015 EQUITY OFF IGHTS industry peers Significantl i i i targeted 1.0% ROAA performance Better positior accretive M&A opportunities a relationship driven organization. 6
Slide 7: May 2015 Equity Offering Results
MAY 2015 EQUITY OFFERING RESULTS over the close the prior day n Share Offering ges in Capital Po: 3191115 Actual 6180/15 Actua 12181715 Actual Tangible Common Equity / Tangible Assets 5.88% 8.15% 8.55% Tier 1 Common Capital / Risk Weighted Assets 7.24% 9.97% 10.33% 9.00% 11.66% 11.88% 10.30% 12.92%
Slide 8: Investment Rationale
INVESTMENT RATIONALE Strong asset quality 1.8x TBV and 13.0x 2016E earnings”)
Slide 9: Unique Products
UNIQUE PRODUCTS Correspondent Banking Wealth Management + $1.73B in Trust (and related) accounts and $628M in systems and processes Brokerage (and related) accounts a0 of 2/50/8 + Full range of product offerings including Trust Services, i “ Brokerage and RIA, Asset Management, Estate aes Planning a
Slide 10: QCR Holdings, Inc. - Market Overview
QCR HOLDINGS, INC. - MARKET OVERVIEW above the national average Weighted Average Income Growth") ‘ocr Franchise National Average Deposit Market Share Overview ($M) voetonk 2 ‘ x0 ey see | eI mn s2000 | goo ‘Quad Cites, IAL Cedar Rapids A Mac Holdings Deposits 8 9 S559 2555 $120 Rockoxd it Waterloo C
Slide 11: Capitalizing on Opportunities
“CAPITALIZING” ON OPPORTUN Leverage renewed capital strength and relationship * ativen approach to capture greater erga market and relationship share + Operating markets are highly fragmented: = 389 community banks are headquartered in top MSAs" in Illinois, lowa and Southern Wisconsin (65% are betw
Slide 12: Top MSAs / Iowa and Illinois
TOP 25 MSAS / IOWA AND ILLINOIS CheageNaperitej, -N S04 2 208 9504259 070% = seaa77 % Sent Levis MOL 3,008 1 c 212902 ot rasa naha-counel us, NEA, zo x 18168 oat suai Destine West De Manes, A 6001 2 ears 14 4200 eaningon I. 13,709 1910 030 ss03 peeing Roe ond iL 1 4 8.600 021 7 Poort 6 r ome: oot ss
Slide 13: Financial Highlights
CR HOLDINGS, INC. arelationship driven organization® Financial Highlights
Slide 14: Total Consolidated Assets
TOTAL CONSOLIDATED ASSETS CAGR From 1994-2015: 21.98% [snus $3,000 $2,000 $2,000 $0 a relationship driven organization.© e suc: npr scones Da aes
Slide 15: Income Statement Results & Key Earnings Metrics
INCOME STATEMENT RESULTS & KEY EARNINGS METRICS Net Income Available to Common NIM (%) ROAA (%) Efficiency Ratio (%) Diluted EPS Reported pays (24) 3.14% 70.89% (60.46) Repeted npyo 292% 036% 7a38% $0.53 Repated ney saa 3.08% 0.51% 72.06% Reported mpyne $94 3.16% 0.62% 159% S185 Repoted mays sis 2.0
Slide 16: C&I and Direct Financing Lease Growth
+ C&l and Direct Financing Lease balances grew approximately 50% and 35%, respectively from 2013 to 2015 + 23% overall loan growth from 2013 to 2015 represented all organic growth + Commercial lending® represents more than 86% of the portfolio 2013 loan growth supplemented by acquisition of Communit
Slide 17: m2 Lease Funds LLC Overview
m2 LEASE FUNDS LLC OVERVIEW + National equipment leasing platform + Focus includes commercial equipment software), and vehicles classified as heavy equipment + High yield portfolio; average gross yield for 2015 was approximately 8.2% + Historically strong asset quality + Target of 10% of consolidate
Slide 18: Asset Quality Overview
ASSET QUALITY OVERVIEW Classified Loans ($M) & NPAs / Assets $70 380 $50 12% ray a 0.70%, $30 $435. $20 12 3 20S, mE Classifed Loans (5) NPR's / Assets) 10% 0.0% Nonperforming Assets Composition — 2015 002% (Other Real Estate Owned BiRep. Assets = 38.7236 ‘Nonaccrual Loanseases 55.78% $19.1M ‘Troubl
Slide 19: Evolution of Funding Base
EVOLUTION OF FUNDING BASE Average Funding Base - 20 Average Funding Base - 2015 Mtonowings 334% Moorrowing 203% sm onineres arog mvovintcet Bering Deposits 13.7% Deporte 2.6% $2,324M. Inger earng Oomand Intra Baring Darand ‘rime Deponts 16.7% ‘Sues: Company documerts Dorin mitre a relationship drive
Slide 20: Attractive Revenue Mix & Growth Trend
ATTRACTIVE REVENUE MIX & GROWTH TREND Continued Strong Top Line Revenue Growth Trends ($M) ig fee income streams promo ee and complement Key Differentiators: + Wealth Management (82.48 in AUM) Correspondent banking (172+ relationships) ‘SBA/ USDA guaranteed loans ‘Source: Company documents, Dots Inm
Slide 21: Shareholders
SHAREHOLDERS Net Income to Common Shareholders ($M) $18.0 $12.0 2010 2011 2012 2013, 2014 2015 a relationship driven organization.° C2)
Slide 22: Strategies to Continue to Drive Shareholder Value
STRATEGIES TO CONTINUE TO DRIVE SHAREHOLDER VALUE f 12/31/15) Continued reductions in wholesale funding to less than 15% of assets (30% as of 12/31/14), now 19.8% as of 12/31/15 Grow wealth management net income by 15% annually (7.01% CAGR from 2010-2015) than peer level: Partici i it markets to fur
Slide 23: Concluding Remarks
CONCLUDING REMARKS market + 3 charter i i ing includ management, leasing and SBA/USDA lending + Strong asset quality + Attractively peer institutions a relationship driven organization. e
Slide 24: Appendix
CR HOLDINGS, INC. Appendix
Slide 25: History of QCR Holdings, Inc.
HISTORY OF QCR HOLDINGS, INC. 2018, Quad City Bancard Formed First Wisconsin Bank & Trust (Oe Novo) ~ Milwaukee, WI Quad City Bancard sells Merchant Acquiring Business Sale of First Wisconsin Bank & Trust ~ Milwaukee, WI SOSMM capital raise a relationship driven organization.® 6
Slide 26: Executive Management Team
EXECUTIVE MANAGEMENT TEAM DOUGLAS, HULTQUIST, CPA Hw. DANA. NICHOLS resident ond Chet Executive Ofcer reside and Chit Executive Oe, Executive Vice Presiden, Chie Crest Ofer [37 Yearsn Banking /Financial Services macose Funds Lte 38 Years in Banking Financial Serves 27 Years n Banking /Finoncil Servi
Slide 27: The Strategic Value of Our Separate Charters
THE STRATEGIC VALUE OF OUR SEPARATE CHARTERS local decisions, local solution: + Historic loan growth better than peers Top Opportunities i in SBA/USDA lending, and m2 Leasing
Slide 28: Quad City Bank & Trust
QUAD CITY BANK & TRUST Highlights - Quad Cities +The Rock Island Arsenal isthe largest govermentouned miltary weapons ‘manufacturing arsenalin the United States + Alva (Quad Gish wort’ premier aropace supply lant =the hb of Aa’ $8 creeds husioes- SMM expansion ote enue 2014 John H. Anderson, Preside
Slide 29: Cedar Rapids Bank & Trust
CEDAR RAPIDS BANK & TRUST Highlights - Cedar Rapids + International Headquarters fr Rockwell Coins + US. Headquarters for Aegon USA 1m Revitalization - Double Tree by ion Cedar Rapids Convention “comp Svea 2 ye woetestein 1000s convent cote arry J. Helling, President & CEO Assets: $867 Million (as o
Slide 30: Rockford Bank & Trust
ROCKFORD BANK & TRUST ROCKFORD Highlights - Rockford BANK & TRUST (August 2018) + RAR (largest aircraft maintenance company in North America, and thir largest inthe wos wll ‘ ‘open a new S41MM facity at Chicago Rockford Airport generating jobs for 500 people Thomas D. Budd, President & CEO + Rock Va
Slide 31: Community Bank & Trust
COMMUNITY BANK & TRUST ( {COMMUNITY Highlights - Waterloo/Cedar Falls RN of additonal space + John Deere competed $15044M modernization of John Deere Foundry total Stacey J. Bentley, President & CEO investment by Osere in Wateroo in he ast decade equals $18 dpot nda Park Population: 170,883 + They t
Slide 32: Group Operations
Group Operations * Accounting — John Oakes and Beth Grabin + Customer Service/ltem n Processing — es Francque Rodrigue: G Funds Management — John McEvoy Jill DeKeyser + Information Technol John Rodrigue: + Internal Audit — Tim Heino * Loan Operations — Pam Goodwin a relationship driven organization.
Slide 33: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share (Sinthosondt, except gr shore doa) 208 2010 2H 2 2H 20m 2s Tongble Common Egy Tetateguty Smss0s $s $s ansass Stands § TST Sao 2a5 0s ss: Prferred Eauty sosre oa306 oa 2983 . ass: Noncontelng iterate
Slide 34: Capital Ratios & Valuation
CAPITAL RATIOS & VALUATION Financial Institutions with Assets Between $500M — $5.0B Pricing Metrics as of 6/8/15 ‘Summary Financial Performance Median: far Pr L™ LT™ LT™ #oflnstitutions TCE Level P/TBV EPS ROAA ROAE ROATCE 1 > 11% 104.7% 14.0x 0.89% 71% 73% QCRH PF? 7.98% 111.6% QCRH 6/30/15 8.15% 1
Slide 35: Deposit Market Share - Quad City Bank & Trust
Deposit Market Share - Quad City Bank & Trust Market Share 1, Wells Fargo Bank 16 1,078.0 14.29% 2. Quad City Bank & Trust 5 929.8 12.32 % 3. Blackhawk Bank & Trust 16 830.5 11.01 % 4. U.S. Bank 1 604.8 8.02% 5. Triumph 10 534.7 7.09 % 6. First Midwest Bank 6 375.5 4.98 % 7. BankOrion 8 355.3 471% 8
Slide 36: Deposit Market Share - Cedar Rapids Bank & Trust
Deposit Market Share - Cedar Rapids Bank & Trust Institution Name US. 10 887.5 16.18 % 2. Wells Fargo Bank " 620.7 11.32 % 3. Farmers State Bank 8 568.4 10.36 % 4. Cedar Rapids Bank & Trust 2 529.9 9.66 % 5. Hills Bank & Trust 6 365.6 6.67 % 6. Bankers Trust Co, 3 318.6 5.81% 7. Guaranty Bank & Trus
Slide 37: Deposit Market Share - Rockford Bank & Trust
Deposit Market Share - Rockford Bank & Trust Institution Name Offices in MSA Deposits* Market Share 1, Alpine Bank & Trust 17 1,069.7 19.04 % 2. Associated Bank 6 701.2 12.48 % 3. JP Morgan Chase 7 615.6 10.96 % 4. BMO Harris 1 584.9 10.41 % 5. Illinois Bank & Trust 4 366.8 6.53 % 6. PNC Bani 9 332.
Slide 38: Deposit Market Share - Community Bank & Trust
Deposit Market Share - Community Bank & Trust Institution Name Market Share 1, Farmers State Bank 9 487.0 15.63 % 2. U.S. Bank 6 338.9 10.88 % 3. Wells Fargo Bank 4 302.3 9.71% 4. Lincoln Savings Bank 6 278.9 8.96 % 5. First National Bank 6 275.8 8.85 % 6. Regions Bank 5 171.0 5.49% 7. GNB Bank 3 14
Slide 39: QCR Holdings contact details
OCR 3551 7* Street Moline, Illinois 61265 wnnw.qcrh.com