Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (August 2011)
39 slides from Qcr's investor presentation, Aug 2, 2011
Slide 1: QCR Holdings, Inc. - a relationship driven organization
OCR HOLDINGS, INC. arelationship driven organization*
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
BaDonon INC. FORWARD-LOOKING STATEMENTS - Continued (x) 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)
Slide 4: Non-GAAP Financial Measures
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 subject to adj
Slide 5: Table of Contents
oes HOLDINGS, INC. arelationship driven org: Table of Contents WHO We Ar @bvcicccaarinicnaeroserencsas OuF Strategy jecicsecssccecececnes Fimancials............::s0ecccceeeeeeseee Strategic Advantages............... ADPCN Keser
Slide 6: QCR Holdings, Inc. will be the premier provider of financial services
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 ROW2 ill DeKeyser Doug Hultquist Cathie Whi John Ander STANDING ROW 3 QCR Holding
Slide 7: Executive Management Team
Executive Management Team DOUGLAS M. HULTQUIST, CPA President and Chief Executive Officer 34 Years in Banking/Financial Services TODD A. GIPPLE, CPA Executive Vice President, Chief Operating Officer and Chief Financial Officer 26 Years in Banking/Financial Services JOHN H. ANDERSON President and Chi
Slide 8: Corporate Overview
oes HOLDINGS, INC. a relationship driven organi: Corporate Overview Founded in 1993 Headquartered in Moline, IL $ 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 Lease Funds LLC
Slide 9: Top MSAs / Iowa and Illinois
Top 25 MSAs / lowa and Illinois reaper apenas, LN staan pa sam arsoota 108% es vests ‘mina cnies Bats NEA seams 1 m3 e030 48 $0323 nn Des ne, s126704 my 26 sas so ose trot Devepet ei Rsk ang UL S108 a 0 0828 ose stare as3 Pea e455? 2 te wee oe et351 503 Roar $5201 2 406 0308 43 5108 1651 Coser Raps.
Slide 10: History of QCR Holdings, Inc.
mee a relationship di 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 in Assets 2005 Qu
Slide 11: Peer Comparisons
Peer Comparisons Assets Total Risk-Based Capital Ratio TCE Texas Ratio NPAs/Assets ROE Efficiency Price/Tangible Book ‘Date as of June 30, 2011 “Data as of March 31, 2011, QCR Holdings, Inc.* Billion 0% 3.6% 24.8% 2.0% 0% 72.3% 58% e a = Average** $ 3.0 Billion 14.9% 6.6% 64.1% 4.4% 6.0% 66.8% 143%
Slide 12: Strategic Issues Impacting Market Value Per Share
mee; INC. a relationship driven organization” 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 13: Entity Wide 2011 Strategic Initiatives
Entity Wide 2011 Strategic Initiatives Prioritization of growth in earnings and carnings per share (EPS), over growth in assets Preservation of capital and increasing tangible common equity (TCE) to allow for redemption of Treasury Capital without the need for a dilutive common equity raise Continue
Slide 14: Summary of Financial Results 2006-2011
Summary of Financial Results 2006-2011 AcTUAL YO weauALZED Net interest income $20,896 $34,362 $44,623 $50,662 $49,864 © $26,160 $82,320 Non.interest income 10,908 = 13,499 13,931 15,547 18,406 9.2730 18,460 Non-interest expense (34,063) (35,734) (42,334) (46,937) (48,549) (25,568) (51,136) Pre-tax
Slide 15: Total Consolidated Assets
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% iT ac eran ig = a 8 a @ = = Pit teen eens ee és e888 88 € 8 € 8 8 & SB
Slide 16: Total Consolidated Deposits
oes HOLDINGS, INC. Total Consolidated Deposits IN MILLIONS OF DOLLARS $1,200 $1,000 $800 $600 $400 $200 $0 Dec-94 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10
Slide 17: A Closer Look: Total Consolidated Deposits (2006-2010)
A Closer Look: Total Consolidated Deposits (2006-2010) IN MILLIONS OF DOLLARS $600 $500 $400 $300 $200 $100 $0 Dec.312006 Dec.312007 Dec.31 2008 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 $500 = COMMERCIAL REAL ESTATE = LEASES ™ RESIDENTIAL REAL ESTATE $400 = INSTALLMENT $300 $200 $100 $0 Dec.31 2006 Dec.312007 Dec.312008 Dec.312009 Dec.31 2010
Slide 19: Loan Portfolio Composition
Loan Portfolio Composition June 30, 2011 IN MILLIONS OF DOLLARS I Dollar Mix Percent Mi 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 73 Direct Financing Leases 85.6 7D Install
Slide 20: Strategic Advantages
mee a relationship 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 s
Slide 21: Key Differentiator: Correspondent Banking
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 System - Loan Participations - Bank Sto
Slide 22: Key Differentiator: Wealth Management
Key Differentiator: Wealth Management + As of June 30, 2011: Over $1 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 professionals + Uniquely positioned with software, sys
Slide 23: Key Differentiator: m2 Lease Funds, LLC
mee; INC. 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 (16 months) + Key Niches ~ Marine Equipment - Printing - Office Technology Leased Assets (in mitlions) $ 53.0 $
Slide 24: Thank You
Tnank, Ou. HOLDINGS, INC. _arelationship driven organization” |
Slide 25: Appendix
HQ iC. a relationship driven organization® Appendix
Slide 26: Peer Credit Analysis Graphs: NPAs / Assets
HOLDINGS, INC. Peer Credit Analysis Graphs NPAs / Assets STITUTION Peer Group: 01a Second Bancorp ne osec 1301 mocked = + PeerMean Macatawa Bank Cerporton cee 908 Southwest Bancorp, ne oKse oss sox Mereanile Banco, ne BR 039 Meanie Bank Corporation awn 530 40% Bayake Cow ByLK 523 sox TayerCaptal Gro
Slide 27: Peer Credit Analysis Graphs: NPAs / Loans + OREO
HOLDINGS, INC. Peer Credit Analysis Graphs NPAs / Loans + OREO institu TICKER TT OANSTORES LOANS + O| Peer Group: ‘Old Second Bancorp, Inc. ose 16.28 OCR ete Peer Mean ‘Mercantile Bancorp, nc. MER m7 ‘Macatawa Bank Corporation McBC 11,59 Lied Southwest Bancorp, Ie ons 1051 60% Baylake Corp. Byik 840
Slide 28: Peer Credit Analysis Graphs
a relationship driven organization Peer Credit Analysis Graphs NCOs / Average Loans Provision Expense / NCOs eco ePoertean mec Poerteon on ‘a a am — 10% 200% i io on es ad PEE EEE EEG PEEEEEE EGG = 0cRH = = PeerMean 750% 60.0% 450% 300% ee ee 150% 00% + sanevansurnneasom f & BE E zov00r 201002 2m100
Slide 29: Peer Analysis 2011 Q1
mee; INC. a relationship driven organi Peer Analysis 2011 Q1 cm em Source: SNL Financia, data forthe quarter ended 3/81/11 Note: Texas rato equal to (NPAS + Loans 80 Days Past Due) /(Tangible Common Equity + Loan Loss Reserves).
Slide 30: Quad City Bank & Trust
QUAD CITY BANK & TRUST
Slide 31: Executive Officers
Executive Officers ‘John Anderson, President and CEO [As President and CEO, Jon isthe diving free in the dtction and continucd growth of Quad City Bank & Tht. Sohn ensues the further succes of Quad City Bank & Trt by tlizing hs uemendous knowlege of the bank industry and personal service to focus on
Slide 32: Senior Officers
Senior Officers Laura Ekizian First Vice President, Private Banking Aas First Vie President, Laura leads the Private Banking department, cam of responsive, experioneod bankers who ‘acon customer expectations by builig long-term rsionships Basel on rst and an unmsiched level f service She recived her
Slide 33: Senior Officers
Senior Officers J ‘Anne Howard, Human Resources Manager AAs Hanan Resouces Manager, Anne Howad is responsible foal ares of the human sources fnction ncn tut not ltd to employee reltions, recruiting erienaten, perfomance management. tsinng, and policy Administration for Quad Cay Bank & Trost, QCR Hol
Slide 34: Senior Officers
Senior Officers ‘Shellee R. Showalter, CPA, Senior Vice President, Chief Financial Office He began t Quad City Bank & Tain 1994 as Cnzller and Director of Human Resources and Technology In 2004, Shalee received the Quad-Citis Area Lenders Under 40 Award. She ta graduate of St Ambrose Univerity and i
Slide 35: Highlights
Highlights DEC 200 DEC 2009 YE DEC 2010YE June 30, 2011 Assets 908,594,141 975,774,394 1,025,699,415 1,030,910,792 Non-Interest Bearing Deposits 98,917,354 132,567,866 195,127,956 223,698,073, Deposits. 572,632,063 565,087,182 599,230,805 646,204,386 Net Interest Income 29,262,931 31,279,854 28,664,
Slide 36: Balance Sheet Restructuring
Balance Sheet Restructuring The Company’s largest subsidiary bank, QCBT, executed a balance sheet restructuring during the first quarter of 2011. Specifically, the bank utilized excess liquidity and prepaid $15.0 million of FHLB advances with a weighted average interest rate of 4.87% and a weighted
Slide 37: Key Differentiator: Wealth Builders Division
Key Differentiator Wealth Builders Division + As of June 30, 2011: Over $1 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 professionals + Uniquely positioned with softwar
Slide 38: Key Differentiator: Correspondent Banking
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 System - Loan Participations - Bank Stoc
Slide 39: Key Differentiator: m2 Lease Funds, LLC
Key Differentiator m2 Lease Funds, LLC + 80% Ownership by Quad City Bank & Trust 20% Ownership by CEO John Engelbrecht + Acquired August of 2005 Leased Assets Pre-Tax Earnings (én mitions) 2006 $53.0 $875,651 2007 $68.7 $1,421,142 2008 $79.7 $784,424 2009 $90.6 $855,679 2010 $85.4 $852,741 2011 (ist