Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (May 2013)
47 slides from Qcr's investor presentation, May 16, 2013
Slide 1: 2013 Investor Presentation
OCR HOLDINGS, INC. 2013 Investor Presentation
Slide 2: Forward-Looking Statements
HOLDIN' IC, a'relationship driven organization’ to, descriptions of the financial condition, results of operations, asset and credit quality trends, rte, “Company’). The Company ing intends such forward-looking statements to be covered by the safe harbor provisions for forward-lookir of the words “b
Slide 3: Forward-Looking Statements (continued)
HOLDIN IC. FORWARD-L! Conti competition from @ wide variety of local, regional, national and other imorkeisrof financial, investment and luding, without limitation, the related Juding hi torms, droughts, tornados and flooding, that may lly and in pany’ (xiv) the failure of Commission, Risk Factor 01
Slide 4: Non-GAAP Financial Measures
IGS, INC. ganization NON-GAAP FINANCIAL MEASURES relationship di 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 e
Slide 5: Table of Contents
iGS, INC. HOLDIN , arrelationship driven organization* Table of Contents Who We Are Cedar Rapids Bank & Trust ....... 6 QCR Holdings, INC. ........seeceeee 11 QUE SHAE GY iicvececncncsicsccaswecnszenn 14 Financials. 23 Key Di ii 31 Appendix. 38
Slide 6: Cedar Rapids Bank & Trust Overview
Cedar Rapids Bank & Trust Overview CEDAR RAPIDS BANK & TRUST - SNAPSHOT HIGHLIGHTS. September 14, 2001 CRBT is legally formed. Recognized as the ‘September 28, 2001 CRBT opens to public. re) ir Organization February 3, 2003 CRBT surpasses $100 Million in assets. ny) by the eee a rnd diine:} July 200
Slide 7: Summary of 2013
Summary of 2013 ACTUALYTD. —aaNUALZEDY 2010 2011 2012 Qt 201 Net interest income $12,469 $15,258 «$15,569 «$15,857 $15,717 $3,845 $15,380 Non-interest income 4,139 4,391 6,099 5,985 5612 1,936 7.743 Non-interest expense, (10,116) (14,692) (12,324) (12,888) (12,260) (3118) (12,474) Pre-tax pre-provis
Slide 8: Total Consolidated Assets
Total Consolidated Assets IN MILLIONS OF DOLLARS $700 $600 $500 $400 $300 j $200 4 $100 5 8 #@ ¢€ 8@ 8 & € @ e f= e f é @ $8 @ &€ & & @ &@ & @ & 8
Slide 9: Total Consolidated Deposits
Total Consolidated Deposits IN MILLIONS OF DOLLARS Dec.01 Dec.02 Dec.03 Dec.04 Dec.05 Dec.06 Dec.07 Dec.08 Dec.09 Dec.10 Dec.11 Dec.12 Mar.13
Slide 10: Cedar Rapids Bank & Trust Market Analysis
CEDAR. ORG RAPIDS or, Wl BANK & eae) TRUST Cedar Bape mae : Trust nalysis US Bank National Assn 10 804,826 15.66% ‘Wells Fargo Bank Na 4 623,471 12.13% Farmers State Bank 8 563,092 10.76% ‘Cedar Rapids Bank & Trust 2 381,874 TB Hills Bank & Trust. 6 344,534 6.70% Bankers Trust Co. 3 287,309 5.59% Gu
Slide 11: Corporate Overview
Corporate Overview QCRH Founded in 1993 Headquartered in Moline, SYMBOL - QCRH $2.09 Billion in assets $ 1.37 Billion in deposits $ 1.27 Billion in loans Faci City Ba ist (5) Ro to Cank e Tht @) Cedar Rapids Bank & Tat @) m2 Lease Funds LLC Shares Outstanding: 4.92 Million Company y Banat Plans 11.6
Slide 12: Corporate Overview — Facility Map
go arrelationship: ral Corporate Overview — Facility Map
Slide 13: Top MSAs / Iowa and Illinois
iS, INC. [OLDING: avrelationship driven organization’ Top 25 MSAs / lowa and Illinois = Depoate IN) Rot Toba Ppp ARC Mec Househtd rected Medan Cheng pei, Ln s1ara7 a ai aco oas% zis0% Stott Hoe pied * eta te ‘eae Simla cain Bt NEA neat waar 50 ez Dre Wns Wes es Mores. 1A a0 Sarre 731 no Davenport Ro
Slide 14: Strategic Advantages
Strategic Advantages local decision: + Opportunities in Correspondent Banking, Wealth Management, m2 L 1 sol fi Credit quality better than peers Historic growth better than peers Top 10 Deposit market share in Rockford and SBA/USDA lending
Slide 15: Entity Wide Strategic Initiatives
iGS, INC. =. arrelationship driven organization* Entity Wide Strategic Initiatives , over growth in assets Continue to improve asset quality utilizing same iinpraved Pricing/Client F Price = Improved Shareholder Value utilizing
Slide 16: Entity Wide Strategic Initiatives: Earnings Growth
moe Entity hare (EPS), over growth in assets Grew earnings by 30%, and earnings per share a 101% utilizin' Continue to improve asset quality Deliver falue hareholder performan utilizing
Slide 17: Entity Wide Strategic Initiatives: Capital
R IGS, INC. HOLD} relationship driven orga Entity assets , over growth in — ieee TCE from ‘0 4.02% Continue to improve asset quality ri 2012 and redeemed $10.2MM Deliver “relatio| in SBLF Capital. ing) PT falue i "to " utilizing hareholder performan
Slide 18: Entity Wide Strategic Initiatives: Asset Quality
moe Entity assets , over growth in Continue to improve asset quality Deliver p! falue hareholder performan utilizing
Slide 19: Entity Wide Strategic Initiatives: NPAs
Hol arrelationship dri Entity , over growth in assets Reduced NPA's from $40.5MM to i , oF 41% Deliver N since 12/31/11. ization” i d 9 i falue hareholder performance” to i utilizing
Slide 20: Entity Wide Strategic Initiatives: Stock Value
HOLDINGS, INC. gai arrelationship driven org Entity , over growth in assets Increased the value of our stock by $7.36 per share, or 81%, since 12/31/11. + Continue to improve asset quality capitalization of our company by $38.1MM. organization” Imp! icing Value " utilizing “shareholder performan: "t
Slide 21: Entity Wide Strategic Initiatives: Analyst Coverage
mee a relationship driv * S, INC. Entity , over growth in assets Obtained analyst Continue to improve asset quality pee ue Se Deliver ees 's Small-Caj 5 rch, and initiated eeu ee outreach. hareholder performance” to
Slide 22: Entity Wide Strategic Initiatives: Acquisition
IGS, INC. HOLD} airelationship driven orgai Entity , over growth in assets Continue to improve asset quality Announced our acquisition of Community National Bank n e Deliver _f _s ° ae 308 23 @ 2 a a ° ® @ 2 af Anilcisating) eeprom More closely align “ “shareholder performai “N 5% EPS accretion in 2
Slide 23: Summary of Financial Results
arrelationship driven organizat Summary of 2009 2010 2011 2012 Net interest income $50,662 $49,864 $54,145 $57,649 5: 15, 17,462 16,621 Non-interest expense (46,937) (48,549) (60,993) (52,259) Pre-tax pre-provision 19,272 16721 20,614 22,011 Provision expense (16,976) (7,464) (6,616) (4,371) income
Slide 24: Stock Price Performance
QCR HOLDINGS, INC. ip driven org arelation zation® $16.50 $48.00 $11.00 rr $9.00 - os $9.14 $7.00 $7.14 $5.00 gs or . ~ oo ra oot es we FP Pes e
Slide 25: Stock Price Increase of 81%
Hi IGS, INC. arrelationship driven orgai $19.00 sty $16.50 vues An Increase V of 81% $15.00 $1: vy Earnings sit00 J npas J SBLF | $9.00 + 30 $9.14 Tee $7.00 Coverage f $7.14 ss.00 Inv. Rel. FP FF ok ot ok ot ot Fe oe cr e te ar ee
Slide 26: QCR Holdings, Inc. Capital Structure
IGS, INC. QCR Holdings, Inc. Capital Structure Dec 12 ember 31, Annually Preferred F* — §20,9M at 6.00% $4,498,950 $378,988 Preferred E™* — $25.0M at7.00% 81,780,000 $437,500 Trust Il $12.4M floating at 3.21% (3ML + 2.85%) $398,040 $99,510 rust Ill $8.2M floating at 3.21% (@ML + 2.85%) $268,220 $65,
Slide 27: Total Consolidated Assets
Total Consolidated Assets IN MILLIONS OF DOLLARS CAGR 1994-2012 24.77% CAGR 1994-2007 32.26% CAGR 2008-2012 6.86% $228 FF RFE Se EEE EE AEG GE
Slide 28: Total Consolidated Deposits
Total Consolidated Deposits IN MILLIONS OF DOLLARS 0 Dec.94 Dec.95 Dec.96 Dec.97 Dec.98 Dec.99 Dec.00 Dec.01 Dec.02 Dec.03 Dec.oa Dec.05 Dec.08 Dec.07 Dec.08 Dec.09 Dec.10 Dec.t1 Dec.12
Slide 29: A Closer Look: Total Consolidated Deposits (2006-2012)
IGS, INC. a'relationship driven organization’ A Closer Look: Total Consolidated Deposits (2006-2012) December 31, 2006 Total $875.5 MM "Non interest Bearing Demand $126.2 MIM or 14% "loterost Bearing $334.0 MIM or 38% Sat7 3 wo RETAIL: $345.8 MM or 40% BROKERED: $71.4 MM or 8% December 31, 2012 Tota
Slide 30: Loan Portfolio Composition
avrelationship driven organ Loan Portfolio Composition December 31, 2012 IN MILLIONS OF DOLLARS TYPE Commercial & Industrial $ 3042 31% Non Owner Occupied Commercial Real Estate 34a. 7 ‘Owner Occupied Commercial Real Estate 208.9 16 Residential Real Estate 115.6 9 Direct Financing Leases 103.7 8 Ins
Slide 31: Key Differentiator: Correspondent Banking
Key Differentiator: Correspondent Banking dnelypodt ompetiti + Depth of product offerings: - Loan Participations - Bank Stock Finaneing - Credit Card Services - Fed Funds Lines ¢ Favorably f Wisconsin. ith Total 7 DBI/I2 bearing). ; d Bankers Bank of Illinois. * Total Bank Stock Loans as of or 3.7%
Slide 32: Key Differentiator: Wealth Management
OCR HOLDINGS, INC. ‘driven Key Differentiator: Wealth Management Nn, } 1.2012: roximately $1.1 Billion in ae. ‘ di Wealth ‘ompetitively teran team of iq Pi * Depth of product offerings: - Finaneial Planning ~ Asset Management ~ Trust Services - Estate Planning - Brokerageand RIA = Insurance ~ Family
Slide 33: Key Differentiator: SBA - USDA Lending
Key Differentiator: SBA - USDA Lending SBAL the Fiscal Year Ending 9/30/12: Quad City Bank & Trust - 8th in the state of 1 éutni8 - Cedar Rapids Bank & Trust - Ist in the state of Iowa for ‘olume) - Rockford Bank & Trust - 11th in th inoi olume) + USDA Lendi Fiscal Year Ending 9/30/1 & Trust ~ Leade
Slide 34: Key Differentiator: m2 Lease Funds, LLC
HOLDINGS, INC. a'relationship driven organization’ Key Differentiator: m2 Lease Funds, LLC LLC. © Quad Cit 1 f Assets (in millions) Pre-Tax Earnings: 2006 $580 $ 2007 $687 $121,142 2008 $79.7 34.02 2008 $206 855,670 2010 $854 52,741 2011 $968 $2,009,470 2012 $1097 $3,967,162 + Key Niches - Marine Eq
Slide 35: Book Value Common Stock Vs. Market Value
QCR HOLDINGS, INC. arelation Book Valu Common Stock Vs. Market Value IN MILLIONS OF DOLLARS: Book Value Market Value PigPiaaid PEPER GG
Slide 36: Focus Areas for 2013
arelation Focus Areas for 2013 Mcet EPS expectations Integration of CNB Hold onto our Net Interest Margin Improve liquidity in our stock Drive down efficiency ratio financing Pay down Small Business Lending Preferred Stock
Slide 37: Our Basic Game Plan
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 38: Thank You. Questions
Tan vou. CR : nore INC. Questions relationship tive organization” |
Slide 39: Appendix
HOLDINGS, INC. arfelationship driven organization” Appendix
Slide 40: QCR Holdings, Inc. Executive Management Team
QCR Holdings, Inc. Executive Manage OUR MISSION: QCR Holding: — ment Team, LEFT TO RIGHT Ta Todd Gipple John Rodriguez Front Row (eat) John Engelbrecht ‘Shawna Graham Michael Wyfiels
Slide 41: Executive Management Team
IGS, INC. HOLD! arrelationship driven organization Executive Management Team DOUGLAS M. HULTQUIST, CPA President and Chief Executive Officer 36 Years in Banking/Financial Services Years in Gananginancial Services Fw and alae _—s Officer, uad City Bank and Trust Company Fs In Banking/Financial Servic
Slide 42: History of QCR Holdings, Inc.
ee arrelationship: 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 Mi i lion in Assets 2005 Rockford Bank & Trust* —$314 Million in Assets i 1s, LLC 2005 Quad City Bank & 2012 ut C
Slide 43: Peer Analysis Q4 2012
HOLD! IGS, INC. arrelationship driven organiza Peer Analysis Q4 2012 uly Tee cnn Copia Leama eke! vg, UR) LP erin Instat Tener assus co) o_o oa ae Grit amen baneo, ne soc 39s a2 735 thar gar t522 wa? 505 ee 1m 2808 10459 * 2208 Festoasey Comores USE Sole © waT SS thar tno TK 68 ee us ose 7ee3 mas ee
Slide 44: Peer Credit Analysis Graphs
IGS, INC. HOLD arrelationship driven organization* Peer Credit Analysis Graphs i A / Assets TICKER. Pee Harland Financial USA ine ame 208 Souther Banco. see 346 at en se 187 Ener Financial Sovices Comp FSC 196 ‘ekeland Financial Comperation nee 178 Flat Finan Corporation THEE 298 Mainsauee Financial
Slide 45: Charge-Off Analysis
iS, INC. HOLDING: avrelationship driven organization’ Charge-Off Analysis ‘0001204 200) 230700) "25107 (6) 2091201204 (000) a ‘QcR HOLOINGS, INC, AND SUBSIDIARIES: ce Hots. ne 000 Lacoa02 a vee 28 ast Biondi Cogany wast eam 2s ersaor 268 (Cede Rapes Bt ana Tt Conan toe rae 35% sense 2b Roars arkant
Slide 46: QCR Holdings, Inc. Peer Credit Quality
ee arrelationship driven orgai QCR Holdings, Inc. Peer Credit Quality NCOs / Average Loans 190 | 1008, 4003 4o70 4ant 4a Provision Expense / NCOs 125 | 10708 4009 40710 aon 4012 50 Source: SHU Fania 1253/12 ues =
Slide 47: QCR Holdings, Inc. Securities Portfolio Snapshot
iS, INC. [OLDING: arrelationship driven organization QCR Holdings, Inc. ‘snapshot As of 12.31.11 Percent ia Ameriing Secures Duraen Petes AFS gst Losses (0005) Gainfloss as Percent of Book Valve Yl Peleted Speees) ‘Average life Projected Spode) ‘Sector As of 12.31.44 BockValue % Total —GoinLoss Book