Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (May 2013)
48 slides from Qcr's investor presentation, May 17, 2013
Slide 1: 2013 Investor Presentation
2013 Investor Presentation
Slide 2: Forward-Looking Statements
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, descriptions of the financial condition,
Slide 3: Forward-Looking Statements - Continued
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 and insurance services; (xi) the risks o
Slide 4: Non-GAAP Financial Measures
relationship: 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 excludes amounts, or is
Slide 5: Table of Contents
2 R HOLDINGS, INC. Table of Contents Who We Are Quad City Bank & Trust .........0+ 6 QCR Holdings; INC.cse:sseccere 11 Out Stale GY ccc cccscscecnencmmaeeecen 15 FINANCI AS ssccs csscsnsossmnisvemmnass 24 Key Differentiators ...............4 32 AP PON IX wecccccasaveemmnnscsstwawece 39
Slide 6: Quad City Bank & Trust Senior Management
Quad City Bank & Trust Senior Management roe we John Anderson Nick Anderson Cindy Carlson Jill DeKeyser Divot Ekizian reset bt A otra oe Disa Smoot Sate Bak Debbie Gillum Anne Howard Ts ea aking Wianaye
Slide 7: Quad City Bank & Trust Senior Management
Quad City Bank & Trust Senior Management Peter McAndrews Rick Jennings Jeff Lockwood eter McAndrevr John McEvoy Vie Quinn Sv Sec Tvs eet {We eto et Consumes toa Ret pects eer EW Ger eens ant Shellee Showalter Cathie Whiteside Michael Wyffels par
Slide 8: Summary of Financial Results 2008-2013
Summary of Financial Results 2008-2013 Net interest income Non-interest income Non-interest expense Pre-tax pre-provision Provision expense Income before taxes. Income taxes. Net income * Not necessary a predicton of 2013 annual earings. $29,263 $31,301 $28,679 $30,856 $33,770 $8,392 $33,566 8,237 1
Slide 9: Total Consolidated Assets
Total Consolidated Assets IN MILLIONS OF DOLLARS $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 @ 8 8 8 8 € 8 © =&€ g g g ¢ ¢ $$ gg g 8 gg 8 ¢g &§ a a a a a a a a a a =
Slide 10: Total Consolidated Deposits
Total Consolidated Deposits IN MILLIONS OF DOLLARS $800 ] $700 $600 $500 $400 $300 $200 $100 $0 2 2 8 8 & 8 8 re re 8 re 8 8 8 8 3 a a a Dec.07 Dec.08 Dec.09 Dec.10 Dec.11 Dec.12 Mar.13
Slide 11: Quad City Bank & Trust Peer Analysis
Quad City Bank & Trust Peer Analysis Offices in Davenport, stitution Name Deposits $* Market Share ‘Moline, Bettendorf Wells Fargo Bank Na 18 4,194,920 16.00% Blackhawk Bank & Trust 16 867,130 11.48% (Quad City Bank & Trust 5 711,349 9.53% US Bank National Assn " 613,126 8.21% THE National Bank 12 8
Slide 12: Corporate Overview
HOLDINGS, INC. a relationship driv nization’ or: Corporate Overview QCRH Founded in 1993 Headquartered in Moline, IL SYMBOL - QCRH $2.09 Billion in assets $ 1.37 Billion in deposits $ 1.27 Billion in loans 10 Facilities Quad City Bank & Trust (5) Rockford Bank & Trust (2) Cedar Rapids Bank & Trust (
Slide 13: Facility Map
arrelationship di Facility Map Corporate Overview -
Slide 14: Top MSAs / Iowa and Illinois
HOLDINGS, INC. a relationship driven organization” Top 25 MSAs / lowa and Illinois Seting IL 128 16 Etingham, IL 116 " gh su37o7 a Low s1t0 " ‘Medium s2sr7a % ‘Source SNL Financial. Depost data as of une 30,2012. Growth rates forthe period 2011 - 2018 can Household Project ea
Slide 15: Strategic Advantages
Strategic Advantages + 4 distinct (yet similar) operating entities — 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 4 operating entities supported by QCRH Group Operati
Slide 16: Entity Wide Strategic Initiatives
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 Continue to maint
Slide 17: Entity Wide Strategic Initiatives
2 R HOLDINGS, INC. Entity Wide Strategic Initiatives Prioritization of growth in earnings and earnings per share (EPS), over growth in assets Grew eamings by 30%, and earnings per share by 101% in 2012. Preservation of capital and increasing tangible common ey redemption of SBLF Capital without the
Slide 18: Entity Wide Strategic Initiatives
HOLDINGS, INC. a relationship driven or 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 diluti
Slide 19: Entity Wide Strategic Initiatives
2 R HOLDINGS, INC. a relationship: 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 co
Slide 20: Entity Wide Strategic Initiatives
2 R HOLDINGS, INC. a relationship: 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 co
Slide 21: Entity Wide Strategic Initiatives
HOLDINGS, INC. Entity Wide Strategic Initiatives Prioritization of growth in earnings and earnings per share (EPS), over growth in assets Increased the value of our stock by $7.36 per share, or 81%, since 12/31/11. Increasing the market capitalization of our company by $38.1MM. Preservation of capit
Slide 22: Entity Wide Strategic Initiatives
HOLDINGS, INC. a relationship driven or 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 diluti
Slide 23: Entity Wide Strategic Initiatives
HOLDINGS, INC. a relationship driven or 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 diluti
Slide 24: Summary of Financial Results 2009-2012
HOLDINGS, INC. Summary of Financial Results 2009-2012 2009 2010 2011 2012 Net interest income $50,662 $49,864 $54,145 $57,649 Norinterest income 15547 15,406 17,462 --16,621 Nor-interest expense (46,937) (48,549) (60,993) (62,259) Pre-tax pre-provision 19.272 16721 20614 += 22,011 Provision expense
Slide 25: Recent Stock Price Performance 2010-2013
R HOLDINGS, INC. a relationship driven organization” Recent Stock Price Performance 2010-2013 $19.00 $17.00 $1650 $16.00 nf $13.00 rr $11.00 $9.00 + $8.90 $9.14 $7.00 $7.14 $5.00 SF FF Hg ses GH gH HM Gv a s ra eo 3 ra - a eo ” ra e 3s
Slide 26: Recent Stock Price Performance 2010-2013
HOLDINGS, IN relationship Recent Stock Price Performance 2010-2013 $19.00 $17.00 $16.00 $13.00 $11.00 $9.00 + $7.00 $6.00 $16.50 $8.90 $9.14 $7.14 ft Soe ‘ot i OE An Increase of 81% Earnings t NPAs | SBLF | toe t Coverage f Inv. Rel.
Slide 27: QCR Holdings, Inc. Capital Structure
HOLDINGS, INC. a relationship driven organization” QCR Holdings, Inc. Capital Structure December 31, 2012 DIVIDENDS / INTEREST PreferredF* — $20.0M at 5.00% Preferred E™* — $25.0M at 7.00% Trust Il $12.4M floating at 3.21% (BML + 2.85%) Trust Ill '$8.2M floating at 3.21% (BML + 2.85%) Trust IV $5.2M
Slide 28: Total Consolidated Assets
2 R HOLDINGS, INC. a'relationship driven organizatic Total Consolidated Assets IN MILLIONS OF DOLLARS CAGR 1994-2012 24.77% ‘CAGR 1994-2007 32.26% CAGR 2008-2012 6.96% ;
Slide 29: Total Consolidated Deposits
2 R HOLDINGS, INC. a relationship driven organization’ Total Consolidated Deposits IN MILLIONS OF DOLLARS $1,400 $1,200 $4,000 800 600 400 $200 $0 S . = = a 5 x S Pi a = 3 a S a
Slide 30: A Closer Look: Total Consolidated Deposits (2006-2012)
2 R HOLDINGS, INC. a relationship driven organizatior A Closer Look: Total Consolidated Deposits (2006-2012) December 31, 2006 December 31, 2012 Total $875.5 MM Total $1,374.1 MM "Non interest Bearing Demand $124.2. MM or 14% "Non intrest Bearing Demand $450.7 MM oF 33% ‘Interest Bearing $334.0 MM o
Slide 31: Loan Portfolio Composition
R HOLDINGS, INC. Loan Portfolio Composition December 31, 2012 IN MILLIONS OF DOLLARS TP! Commercial & Industrial $394.2 31% Non Owner Occupied Commercial Real Estate 344.1 27 ‘Owner Occupied Commercial Real Estate 208.9 16 Residential Real Estate 115.6 9 Direct Financing Leases 103.7 8 Installment a
Slide 32: Key Differentiator: Correspondent Banking
arel ionship ai 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
Slide 33: Key Differentiator: Wealth Management
Key Differentiator: Wealth Management + As of December 31, 2012: Approximately $1.1 Billion in Trust (and related) accounts and $568 Million in Brokerage (and related) accounts. * Competitively positioned due to our veteran team of Wealth Management professionals + Uniquely positioned with software,
Slide 34: Key Differentiator: SBA - USDA Lending
Key Differentiator: SBA - USDA Lending + SBA Loans Originated for the Fiscal Year Ending 9/30/12: - Quad City Bank & Trust - 8th in the state of Iowa for Iowa chartered banks (dollar volume) - Cedar Rapids Bank & Trust - Ist in the state of Iowa for Iowa chartered banks (dollar volume) - Rockford Ba
Slide 35: Key Differentiator: m2 Lease Funds, LLC
Key Differentiator: m2 Lease Funds, LLC fective September 2012, Quad City Bank & Trust now owns 100% of m2 Lease Funds, LLC. * Quad City Bank & Trust acquired 80% ownership August of 2005 Assets (i milions) Pre-Tax Earnings 2008 $530 $675,651 2007 $687 $4,424,442 2008 $707 s 734424 2008 $906 855679
Slide 36: Book Value of Common Stock Vs. Market Value
Book Value of Common Stock Vs. Market Value $100 IN MILLIONS OF DOLLARS Book Value Market Value
Slide 37: Focus Areas for 2013
messes: INC. a relation: 5 Focus Areas for 2013 wn wp wena 10. Meet EPS expectations Integration of CNB Hold onto our Net Interest Margin Maximize SBA/USDA gains on loan sales Maximize wealth management income Improve liquidity in our stock Drive down efficiency ratio Conversion of Series E preferre
Slide 38: Our Basic Game Plan
mee; INC. arel Our Basic Game Plan Hire the best people supplied with the tools they need. Clients get exceptional service by satisfied and motivated employees. Shareholders Will Be Rewarded. This is Community Banking!
Slide 39: Thank You, Questions
Than, YOu, te Questions
Slide 40: Appendix
wk INC. ganization Appendix
Slide 41: Executive Management Team
LEFT TO RIGHT Rand Westlund John McEvoy Charlie Bullock arty Helling Doug Hultquist Tom Budd Bill Tank Todd Gipple John Rodriguez Front Row (seated) a QGR Holdings, Inc. Executive Management Team OUR MISSION: QCR Holdings, Inc. will be the premier provider of financial services to businesses and ind
Slide 42: Executive Management Team
relationship: 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 JOHN H. ANDERSON, Pr
Slide 43: History of QCR Holdings, Inc.
mes arrelationship di History of QCR Holdings, Inc. 1993 Founded by Mike Bauer and Doug Hultquist 1994 Quad City Bank & Trust* $1.18 Billion in Assets 2001 Cedar Rapids Bank & Trust* -$626 Million in Assets 2005 Rockford Bank & Trust* -$314 Million in Assets 2005 Quad City Bank & Trust acquires 80%
Slide 44: Peer Analysis Q4 2012
a relationship driv Peer Analysis Q4 2012 ‘Eeuty! Tee cn wpa cept Lome Assets TA Rio alo Ral Rao Oeponte nation Teer ee ee ee ato Fina USA, re HF ages 743578780003 138 1538 7608 rest Suton Bane, he sec sass ot 775 er 947 1522 1847505, Lastest Crain WEN 2057058 ose 1178 was 901 1427 erat FatFaanal Cu
Slide 45: Peer Credit Analysis Graphs
HOLDINGS, INC. Peer Credit Analysis Graphs Non-Performing Assets / Assets NPAs [TOT ai cities Sia ass _ See Sane a = eaeacone cir ie se Excess 1 iin imme im 4 AQ First Financial Corporation THFF 236 260 pe i rer oe Se ae 2 200} a a a is ‘om WNRP 5.03 a = ce = 7” ears ca Pe TT o ea a S = a ts aan = a
Slide 46: Charge-Off Analysis
HOLDINGS, INC. a relationship driven organization’ Charge-Off Analysis ooozor204($000) 123807 (800) "23407 (9) 207201204 (000) ‘QcR HOLDINGS, INC. AND SUBSIDIARIES: ‘uns Bakond Tat Conary eer 20% sear 240% (ose Raps ars Tt Capany ra.n0 351% pore 200% Rearsoarkant Test Conoary v8 738% ps0 37% Gro Sat
Slide 47: QCR Holdings, Inc. Peer Credit Quality
QCR Holdings, Inc. Peer Credit Quality NCOs / Average Loans Provision Expense / NCOs 200 500 m mt \ 400 250 050 435 00 a 4008 4008 4or0 aon ao ‘on Tous ao. Tati meee 50 too tow dow don don m7 Saco: SH. Fnac 2002 Pi
Slide 48: Consolidated Securities Portfolio
HOLDINGS, INC. Goa Homies Consolidated Securities Portfolio ‘Shapshot— As of 12.31.11 ees, 8419 Book Value ‘% Total Gain/Loss_ Book Yield Reprice Term a a ser a aaa pees rs i ] is Comporate (Fixed) 926 0% @ 028 70 ese ees bt Corporate (Float) 240 0% 4a 257 02 etd nal ied nae (MBS (Fixed) 82.620 9% 1