Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Merger or Acquisition (November 2021)
28 slides from Qcr's merger presentation, Nov 9, 2021
Slide 1: A Compelling Partnership
A Compelling Partnership November 9, 2021
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial condition, results of operations, plans, objectives, future performance and business of QCR Holdings (the “Comp
Slide 3: Additional Information
ADDITIONAL INFORMATION QCR Holdings will file a registration statement on Form S-4 with the SEC in connection with the proposed transaction. The registration statement will include a proxy statement of Guaranty that also constitutes a prospectus of QCR Holdings, which will be sent to the stockholder
Slide 4: Table of Contents
Table of Contents • Acquisition Rationale CONTENTS • Key Transaction Assumptions and Metrics • Springfield Market Overview • Pro Forma Composition • Demonstrated M&A Success 4
Slide 5: Overview of QCR Holdings (QCRH)
Overview of QCR Holdings (QCRH) QCRH Market Locations QCRH OVERVIEW Company Overview • Headquartered in Moline, IL, founded in 1993 • Operates 23 banking locations in Iowa, Missouri, and Illinois • Full-service commercial and retail banking and trust and wealth management services • High-performing
Slide 6: QCRH Business Niches Drive Outstanding Results
QCRH Business Niches Drive Outstanding Results Built on top of our solid traditional business, our three primary niche areas diversify our earnings power. QCRH NICHES Our High-Performing Business Niches Solid Traditional Specialty Finance Wealth Correspondent Banking Business Group Management Bankin
Slide 7: Overview of Guaranty Federal Bancshares, Inc.
Overview of Guaranty Federal Bancshares, Inc. GFED OVERVIEW Company Overview Branch Footprint • Headquartered in Springfield, Missouri • Bank subsidiary Guaranty Bank was founded in 1913 • $1.2 billion in total assets • Listed on the NASDAQ under “GFED” with $105 million market capitalization • Oper
Slide 8: Transaction Criteria – The right partner in the right markets
Transaction Criteria – The right partner in the right markets Pro Forma Key Attributes Rationale Guaranty Bank M&A CRITERIA FRANCHISE Attractive mid-size metro markets with Build scale and increase market share in growth opportunities communities where relationships are a differentiator Aligned va
Slide 9: Overview of Transaction Structure and Terms
Overview of Transaction Structure and Terms • Right to receive $30.50 in cash, 0.58775 shares of QCRH common stock, or a mixed STRUCTRURE consideration of $6.10 in cash and 0.4702 shares of QCRH common stock Consideration to GFED • Cash, stock, and mixed elections subject to proration, resulting in
Slide 10: Key Transaction Assumptions
Key Transaction Assumptions • QCRH: Consensus analyst estimates ASSUMPTIONS Financially • GFED: As estimated by combined management Compelling Pro Forma Earnings Projections • No revenue synergies included in expected EPS accretion, but opportunities exist with QCRH’s broader product suite including
Slide 11: Pro Forma Franchise - Growing Market Share Matters
PRO FORMA FRANCHISE Pro Forma Franchise - Growing Market Share Matters • The combined bank will have eleven locations in the Springfield MSA. • The combined bank will be ranked # 4 in deposit market share. • $2.0 billion in total assets Springfield MSA - Deposit Market Share Branches in Deposits Mar
Slide 12: Pro Forma QCR Holdings, Inc. Market Map
Pro Forma QCR Holdings, Inc. Market Map PRO FORMA MAP *Milwaukee location indicates m2 Equipment Finance LLC location. 12
Slide 13: Pro Forma Loan Composition - Reported
Pro Forma Loan Composition - Reported Pro Forma¹ COMPOSITION Total Loans = $4.6B Total Loans = $798M Total Loans = $5.4B Other Residential RE Other Other Residential RE 3% 8% C&I 3% Residential RE 3% 9% 15% 13% C&I C&I 32% 36% CRE CRE CRE 53% 69% 56% Yield on Loans: 4.07% Yield on Loans: 4.71% Yield
Slide 14: Pro Forma Deposit Composition - Reported
Pro Forma Deposit Composition - Reported Pro Forma COMPOSITION Total Deposits = $4.9B Total Deposits = $1.0B Total Deposits = $5.9B Time Time Time Deposits Deposits Noninterest Noninterest Deposits Noninterest 9% 15% Bearing Bearing 10% Bearing 28% 27% 27% Interest Interest Interest Bearing Bearing
Slide 15: Robust Due Diligence Process
Robust Due Diligence Process Due Diligence Focus Areas Due Diligence Approach DUE DILIGENCE Highly collaborative with both teams • Asset Quality • Corporate Records/Legal Thorough evaluation of GFED loan portfolio • Data Processing • Reviewed 100% of loans > $2M • Facilities • Reviewed 60% of co
Slide 16: Springfield Market Overview
QCR Holdings, Inc. SPRINGFIELD MARKET OVERVIEW 16
Slide 17: QCRH Does Business in Vibrant Markets
QCRH Does Business in Vibrant Markets. Relationships matter and differentiate us from big banks MARKETS Robust commercial, industrial and technology activity Strong demographics drive steady growth Mid-sized metros 200K-500K population MSAs Ability to gain prominent market share 17
Slide 18: Springfield's Primary Industries and Employers
Springfield’s Primary Industries and Employers Primary Industries Major Employers Headquarters • Healthcare • Bass Pro Shops • Manufacturing • O’Reilly Auto Parts • Transportation • BKD, LLP MARKETS • Education • Springfield ReManufacturing Corp • Retail • Jack Henry & Associates Other Major Employe
Slide 19: Why Springfield is a great market – Community Highlights
Why Springfield is a great market – Community Highlights • Springfield MSA population = 475,000 • Cost of living is consistently 10% below the national average. • The Springfield metro workforce has grown more than 3% MARKETS in the past 8 years. • The area’s unemployment rate of 2.7% has steadily d
Slide 20: Joplin's Primary Industries and Employers
Joplin’s Primary Industries and Employers Primary Industries Major Employers • Healthcare • Freeman Health System • Manufacturing • Leggett & Platt MARKETS • Transportation • Con-way Truckload • Education • Mercy Hospital Joplin • Retail • Joplin School District • Eagle-Picher • Walmart • Systems &
Slide 21: Why Joplin is a great market – Community Highlights
Why Joplin is a great market – Community Highlights • Joplin MSA population = 179,000 • Population grew by 3,311 over the last 5 years and is projected to grow by 4,886 over the next 5 years. MARKETS • Attractive banking market that is the commercial, medical and cultural hub of a four-state region
Slide 22: Demonstrated M&A Success
QCR Holdings, Inc. DEMONSTRATED M&A SUCCESS 22
Slide 23: Demonstrated Ability to Obtain Regulatory Approval and Close Quickly
Demonstrated Ability to Obtain Regulatory Approval and Close Quickly REGULATORS Deal Signed/ Acquisition Deal Closed Time to Close Announced SFC Bank April 18, 2018 July 1, 2018 74 days Guaranty Bank June 8, 2017 Oct. 1, 2017 115 days (Cedar Rapids) Community State May 23, 2016 Aug. 31, 2016 100 day
Slide 24: Demonstrated Strong Results in Prior M&A Transactions: SFC
Demonstrated Strong Results in Prior M&A Transactions Springfield First Community Bank in Springfield MSA SFC RESULTS SFC Loans/Assets/Deposits Comparison(1)($M) SFC Net Income Comparison ($M) $1,000 CAGR $900 13.6% CAGR CAGR $16 $800 12.5% 9.6% CAGR $14 28.3% $700 $12 $600 $10 $500 $880.1 $8 $400 $
Slide 25: Demonstrated Strong Results in Prior M&A Transactions: CSB
Demonstrated Strong Results in Prior M&A Transactions Community State Bank in Ankeny/Des Moines MSA (1) CSB Loans/Assets/Deposits Comparison ($M) CSB Net Income Comparison ($M) CSB RESULTS $1,200 CAGR CAGR 19.0% 21.3% $12 CAGR $1,000 CAGR 20.9% $10 18.3% $800 $8 $600 $1,140.9 $6 $994.0 $11.2 $400 $8
Slide 26: Strong Expected Accretion Will Lead to Quick TBV Earnback
Strong Expected Accretion Will Lead to Quick TBV Earnback TBV EARNBACK Strong Historical TBV Per Share Growth $7 Strong Historical EPS Growth $40 $6 $35 $5 $30 $25 $4 $20 $3 $5.97 $36.30 $15 $32.16 $28.15 $2 $22.70 $24.04 $3.60 $3.80 $10 $20.11 $2.86 $2.17 $2.61 $5 $1 $0 $0 2016 2017 2018 2019 2020
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation RECONCILIATION As of December 31 December 31 December 31 December 31 December 31 September 30 GAAP to Non-GAAP Reconciliation 2016 2017 2018 2019 2020 2021 (Dollars in thousands, except per share data) Tangible book value per share Stockholders' equity (GAAP) $ 286,041 $ 353,
Slide 28: 3551 Seventh Street Moline, IL 61265 www.QCRH.com
3551 Seventh Street Moline, IL 61265 www.QCRH.com © Copyright 2021 QCR Holdings, Inc. All Rights Reserved