Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (August 2011)
32 slides from Qcr's investor presentation, Aug 10, 2011
Slide 1: QCR Holdings, Inc. - a relationship driven organization
HOLDINGS, INC. arelationship driven organization”
Slide 2: Forward-Looking Statements
Ho! IGS, INC. arelationship dri organi 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, d
Slide 3: Forward-Looking Statements - Continued
Ho! IGS, INC. arelationship dri organi 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 a
Slide 4: Non-GAAP Financial Measures
Ho! IGS, INC. organi arelationship dri 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
Slide 5: Table of Contents
arelationship driven Table of Contents WhO WE AT e........secceessseeeeeeseneee 6 OU STALE GY ccnccaesnssevenessoeesinese 9 FINANCIANS cs csncpstcrsssinacaesexseenens 11 Key Differentiators .. 20 Appendix 26
Slide 6: Corporate Overview
HOLDINGS, INC. arrelationship driven organization’ Corporate Overview Founded in 1993 Headquartered in Moline, IL SYMBOL - QCRH $ 1.8 Billion in assets $ 1.2 Billion in deposits $ 1.2 Billion in loans 10 Facilities Quad City Bank & Trust (5) Rockford Bank & Trust (2) Cedar Rapids Bank & Trust (2) m2
Slide 7: History of QCR Holdings, Inc.
Ho! IGS, INC. arelationship driven org History of QCR Holdings, Inc. 1993 Founded by Mike Bauer and Doug Hultquist 1994 Quad City Bank & Trust* — Currently $1.04 Billion in Assets 2001 Cedar Rapids Bank & Trust* — Currently $558 Million in Assets 2005 Rockford Bank & Trust* — Currently $272 Million
Slide 8: Strategic Advantages
Ho! arelationship di Strategic Advantages + 3 distinct (yet similar) operating charters — able to customize solutions by market + Managed by local veteran bankers and governed by local Board of Directors * Credit quality better than peers + Historic growth better than peers * Top 5 Deposit market sh
Slide 9: Entity Wide 2011 Strategic Initiatives
Ho! IGS, INC. arelationship dri organ Entity Wide 2011 Strategic Initiatives Prioritization of growth in earnings and earnings per share (EPS), over growth in assets Preservation of capital and iner redemption of ing tangible common equity (TCE) to allow for asury Capital without the need for a dilu
Slide 10: Top MSAs / Iowa and Illinois
Ho! iGS, INC. Top 25 MSAs/ lowa and Illinois ercopatapert La een 2 sam 208 esr, ‘Sentlaus, WO tas te oe san nau nat cael But, NEA fesmre ” a sos wan Deore S126 a ae feo 1208 Covepotiane Racksand AA, #79018 a ‘9 1378 tas Pewna U 584552 2 te 4381 1563 Roar. ssa = ‘08 so1a28 1681 Ceara wan? 2 ‘08 ssos0
Slide 11: Summary of Financial Results 2006-2011
OG. Summary of Financial Results 2006-2011 ACTUALYTO. —ANNUALZEDY Net interest income $29,896 $34,352 $44,623 «$50,662 $49,864 © $26,160 $52,320 Non-interest income 10,998 13,499 13,931 15.547 15,406 9,230 18,460 Non-interest expense (34,063) (35,734) (42,334) (46,937) (48,549) (25,568) (51,136) Pre
Slide 12: Peer Comparisons
aes arrelationship di Peer Comparisons QCR Holdings, Inc. * Total Capital Texas Ratio | tar NPAs/Assets | Efficiency Price/Tangible pay Book “Data as of June 30, 2011” Data as of March 31, 2011 Average ~ $ 3.0 Billion 14.9% 6.6% 64.1% 44% 6.0% 66.8% 143% Median ~ $ 2.6 Billion 15.4% 7.0% 37.8% 3.3%
Slide 13: Strategic Issues Impacting Market Value Per Share
Strategic 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?
Slide 14: QCR Holdings, Inc. Capital Structure
QCR HOLDINGS, INC. arelationship driven organization” QCR Holdings, Inc. Capital Structure June 30, 2011 DIVIDENDS / INTEREST Preferred E* '$25.0M at 7.00% Preferred D '$38.2M at 5.00% ‘Trust t '$12.4M floating at 3.16% (3ML + 2.85%) ‘Trust it '$8.2M floating at 3.16% (ML + 2.85%) Trust IV '$5.2M fl
Slide 15: Total Consolidated Assets
mee ionship driven organization* Total Consolidated Assets IN MILLIONS OF DOLLARS $2,000 $1,750 $1,500 $1,250 $1,000 $750 $500 $250 $0 CAGR 1994-2010 27.23% CAGR 1994-2007 32.26% CAGR 2008-2010 7.54% a t = ry 2 fa} Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 D
Slide 16: Total Consolidated Deposits
arelationship driven organization Total Consolidated Deposits IN MILLIONS OF DOLLARS $1,200 $1,000 $800 $600 $400 $200 $0 $ 8 8 & 8 8 5 8 8 § 8 8 § 8 Be 8 $ 8 8 8 8 $ 8 8 8 8 $8 § 8 8 B 8 é 68 8 66 6 86 6 86 86 &6&§ 8 & 8 B
Slide 17: A Closer Look: Total Consolidated Deposits (2006-2010)
arrelationship driven organization” A Closer Look: Total Consolidated Deposits (2006-2010) IN MILLIONS OF DOLLARS $600 $500 $400 $300 $200 $100 $0 Dec.31 2006 Dec.312007 Dec.312008 Dec.31 2009 Dec.31 2010 "™ NON-INTEREST BEARING INTEREST BEARING =CD's
Slide 18: A Closer Look: Consolidated Loan Composition (2006-2010)
A Closer Look: Consolidated Loan Composition (2006-2010) IN MILLIONS OF DOLLARS $600 ™ COMMERCIAL/INDUSTRIAL = COMMERCIAL REAL ESTATE = LEASES ™ RESIDENTIAL REAL ESTATE INSTALLMENT $500 $400 $300 $200 $100 $0 Dec.31 2006 Dec.312007 Dec.312008 Dec.31 2009 Dec.31 2010
Slide 19: Loan Portfolio Composition
QCR HOLDINGS, INC. Loan Portfolio Composition June 30, 2011 IN MILLIONS OF DOLLARS TYPE Dollar Mix Percent Mix ‘Commercial & Industrial $ 368.6 31.2% ‘Non Owner Occupied Commercial Real Estate 334.6 28.3 Owner Occupied Commercial Real Estate 163.1 138 Residential Real Estate 86.0 74 Direct Financing
Slide 20: Key Differentiator: Correspondent Banking
Ho! arelationship dri INC. organization” Key Differentiator: Correspondent Banking * Uniquely positioned due to veteran Correspondent bankers on our team + Uniquely positioned with software, systems and processes + Well positioned with product offerings - Online Cash Management —_- Image Cash Letter
Slide 21: Key Differentiator: Wealth Management
Ho! arelationship dri INC. organization” Key Differentiator: Wealth Management + As of June 30, 2011: Over $1.0 Billion in Trust (and related) accounts — $278MM in Brokerage (and related) accounts. Over $1.3 Billion Total + Uniquely positioned due to our veteran team of Wealth Management professiona
Slide 22: Key Differentiator: m2 Lease Funds, LLC
aes Ic. arelationship driven o ion Key Differentiator: m2 Lease Funds, LLC + 80% Ownership by Quad City Bank & Trust /20% Ownership by CEO John Engelbrecht + Acquired August of 2005 2006 2007 2008 2009 2010 2011 (ist 6 months) + Key Niches: - Marine Equipment - Printing - Office Technology Leased As
Slide 23: Stock Trading History
Hol IGS, INC. eR HoRingE: Ie sles Stock Trading History $25.00 $20.00 $15.00 $10.00 $5.00 4/31/03 6/30/03, 1/30/04 6/30/04 1/31/05 6/30/05 1/31/06 6/30/06 4131/07 6/29/07 1/31/08 6/30/08 1/30/09 6/30/09 4/29/10 6/30/10 413111 6/30/11 7/29/11 ‘Trading Summary for QCRH » Sources: NASOHQ. Online, IOC A
Slide 24: Tangible Book Value of Common Stock vs. Fair Market Value
HOLDINGS, INC. Tangible Book Value of Common Stock Vs. Fair Market Value IN MILLIONS OF DOLLARS $100 $90 $80 $70 $60 $50 $40 $30 $20 $10 $o DecS3 DecS4 Dec9S Dec96 DecO7 DEC DeCS9 DecOO DecOl Deco? DECI VECO DECC DecOE DecO7 DecS DecOd DecI0 "Book Value of Stock ™ Fair Market Value
Slide 25: Thank You - Questions
Thang, MOU. _natrte _ Questions
Slide 26: Appendix
Appendix
Slide 27: QCR Holdings, Inc. Executive Management Team
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. LEFT TO RIGHT SEATED ROW 1 Vie Quinn Rand Westlund SEATED ROW 2 Jill DeKeyser Doug Hultquist Cathie Whiteside Joh Anderson STANDING ROW 3
Slide 28: Executive Management Team
Ho! IGS, INC. arelationship dri organi Executive Management Team DOUGLAS M, HULTQUIST, CPA, President and Chief Executive Officer 34 Years in Banking/Financial Services TODD A. GIPPLE, CPA Executive Vice Presider, Chief Operating Officer and Chief Financial Officer 26 Years in Banking/Financial Serv
Slide 29: Peer Analysis 2011 Q1
Peer Analysis 2011 Q1 ee pee, SS oS 2 aoe ae free aH I ; cain Gon sel eae one moat aso isa eas 202 {oases 0as e257 enst Source: SN Financial, data for the quarter ended 301/11 Note: Texas rato equal to (NPAs + Loans 90 Days Past Oue) (Tangible Common Equty + Loan Loss Reserves)
Slide 30: Peer Credit Analysis Graphs
QCR HOLDINGS, INC. arelationship driven organization” Peer Credit Analysis Graphs NPAs / Assets INSTITUTION Peer Group: (Old Second Bancorp, le ‘Macatawa Bank Corporation ‘Southwest Bancorp, Ine. ‘Mercantile Bancorp, Inc. “Mercantile Bank Corporation Baylake Corp. Taylor Capital Group, Ine (MB Finan
Slide 31: Charge-Off Analysis
HOLDINGS, INC. arrelationship driven organization” Charge-Off Analysi ‘Cumulati QCRH AND SUBSIDIARIES: QRH Holdings, In. (Quad City Bank and Trust Company Cedar Rapids Bank and Trust Company Rockford Bank and Trust Company. PROXY PEER GROUP: 'MB Financial, In. (VB Financial Corp. Pinnacle Financial
Slide 32: Peer Credit Analysis Graphs
QCR HOLDINGS, INC. arrelationship driven organization’ Peer Credit Analysis Graphs NCOs / Average Loans Provision Expense / NCOs = are ae vn san = vn = . = = GiGi ieia: PPELELLLE: set om a pes —— _ a nin = Source: KBWESM. Fanci 2041 bebe ee eg Zz