Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (November 2014)
44 slides from Qcr's investor presentation, Nov 3, 2014
Slide 1: Financial Presentation
FINANCIAL PRESENTATION Quad Cities - November 2014 QCR HOLDINGS, INC. a relationship driven organization*
Slide 2: Forward-looking statements
OCR HOLDINGS, i Act of to, descriptions of the financial condition, results of operations, asset and credit quality trends, profitability, projected earings, future plans, strategies and expectations of QCR Holdings Inc. (the “Company”). The assumptions of the Company, are generally identifiable by
Slide 3: Forward-looking statements (continued)
QCR HOLDINGS, INC. arelationship driven organizatio competition from a wide variety of local, regional, national and other providers of financial, investment time and costs of implementing id the relate actions and possible sactions; (xii) changes i ici vill) the effects of war or other conflicts, J
Slide 4: Non-GAAP Financial Measures
wt INC. El relations! ‘organizatior N-GAAP F 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, nse postion or cesh fous ludes amounts, or is sub
Slide 5: Table of Contents
INC. HOLD! CR Table of Contents 6 Who We Are Quad City Bank & Trust ............ceeeeeeeeeee 7 QCR Holdings, Inc. 13 i i 17 Focus Areas .. 22 pi y 23 Strat Raat 25 Y 26 Appendix 32
Slide 6: Investment Rationale
HOLDINGS, INC. relationship driven organizatior Investment Rationale in lowa (80%) and Illinois (20%)
Slide 7: Quad City Bank & Trust Senior Management
CITY. BANK & Quad City Bank & Trust TRUST Senior Management John Anderson Nick Anderson Cindy Carlson Jill Dubin Divot President CEO Contes Ev Weath Builders Grup PhOrfcer SMP Kathy Francque Therese Gerwe Debbie Gillum Anne Howard Dave Howell SU Correspondent Banking Ve Treasury Management 1stVP Ret
Slide 8: Quad City Bank & Trust Senior Management
Quad City Bank & Trust Senior Management Peter McAndrews Rick Jennings Jeff Lockwood {Viel eal Ete, & John McEvoy EOC ss Sv Ser Ts fer Chie tending er Gueraleas VRC Operatns Ofer paler, Shellee Showalter Gastie Whiteside cp een serene Services Homan escues Michael Wyffels SP, Che ehnalony Ofer
Slide 9: Net interest income and earnings
Net interest income Non-interest income * Not necessary a prediction of 2014 annual earnings. $28,679 $30,856 $33,770 $33,892 $36,315 8237 10,488 9.111 11,655 11,273 12,129 10,419 (21,563) (24,055) (25,518) (26,767) (27,875) «28,733 (28,560) 15,937 17.734 12,272 19,744 17,168 17,288 18,174 (4,079) (
Slide 10: Total Consolidated Assets
Total Consolidated Assets IN MILLIONS OF DOLLARS CAGR 2003-2014 8.40%
Slide 11: Total Consolidated Deposits
Total Consolidated Deposits IN MILLIONS OF DOLLARS CAGR 2003-2014 8.25%
Slide 12: Market Analysis
1 Triumph First Midwest Bank Bank Orion Great Southern Bancorp American Bank 0. Modern Woodmen Bank * Millions of Dollars, as of 6/3014 Quad oe pan & Trust er Analysis Market
Slide 13: History of QCR Holdings, Inc.
wee INC. toh History of QCR Holdings, Inc. Hol arélationship driv ‘orgat ‘Assets 28 of September 30, 2014 *DeNovo 9 Quad City Bancard Formed 2005 Rockford Bank & Trust* — Currently $347 Million in Assets 2007 First Wisconsin Bank & ‘Trust* ~ Milwaukee, WL y 31, 2013 o 2013 ity 2013
Slide 14: Our Geography
Our Geography el Ik & Trust _ © Community Bani ae
Slide 15: Corporate Overview
Hol arélationship driv Corporate Overview QCR Holdings, Inc. - Founded in 1993 Headquartered in Moline, IL SYMBOL ~ $2.45 Billion in Assets $1.57 Billion in Loans $1.71 Billion in Deposits 13 Faciliti Quad City Bank & Trust (5) Cedar Rapids Bank & Trust (2) Rockford Bank & 2) m2 Lease Funds LLC (1)
Slide 16: Top 25 MSAs in Iowa and Illinois
WOR INC. ei ‘relationship driven organization’ Median Household Top 25 MSAs / lowa and Illinois Projected Population Cticago-Naporite ign LIN. S3sqort a 9687.20 Sein Lous. MO: 6932 * 2798724 COmate-Couns! aus, NEA 2 398,104 es Moines:nest Des Manes. 1A 3088 consis on E L 7935 c ase eo, oars 1 321716
Slide 17: Total Consolidated Assets growth
He IN Total Consolidated Assets CAGR 1994-2014 23.04% CAGR 1994-2007 32.26% CAGR 2008-2014 7.40% B&T}(201 N CRBT (2001) N &T (2005) 8 &@ & 8 ® 8 &§ & 8 § 8 B&B Be EH SE $ $ 8 $ 8 & $ & & S&S S$ & $F$ BF BF FS F FS & FE 6 6 8 6 86 6 6 8 6 6 6 6 6 8&6 & 6 46 & BB IN MILLIONS OF DOLLARS
Slide 18: Balance sheet composition
[OLDINGS, INC. He ‘As of December 31 2008 2010 201" 2018 ‘As of Sept30, 2014 (in tousands) AMOUNT —% = AMOUNT AMOUNT % © AMOUNT % AMOUNT —% = AMOUNT -% Cash federalfunds sold, and 74.998 4% $143,737 8% 100673 5% $110,488 5% S114431 5% $108,718 4% interest-bearing deposits [Noninterest-bearing deposi
Slide 19: Income statement summary
{in thousands) $64,105, $51,290 Net interest income Provision expense Income before taxes Income taxes let income 80% Less: net income attibutable to non-controling interests a 428 8 Net income attibutable to GCR Holdings, Ine. 472 12.618 Less: prefeed dividends 844) 4.128) 6284) 498) Net income ati
Slide 20: Community National Bank acquisition
Community National Bank: romney in 1997 Headquartered in Waterloo, Acquired by QCRH May Transaction Resulting Proform: 2 Bank & Trust ae Cedar Ray Community National Bank Q4 2013 $ 822 Million in assets $ 611 Million in deposits $ 277 Million in assets Waterloo, 1A (2) Cedar Falls, IA (2) Mason City
Slide 21: Stock Metrics
Stock Metrics 2008 - a3 2014 Hor! relationship $19.00 $17.00 $15.00 $13.00 Stock Price 11.00 . -eTBV/Share $9.00 $7.00 2009 2010 2011 2012 2013 Q12014 Q22014 Q3 2014 mined ($0.46) $0.53 $0.92 $1.85 $2.08 $0.40 $0.45 $0.50
Slide 22: Focus Areas
HOLD! CE INC. Focus Areas for No wo ee NDA Value . Grow loans / leases Continue to improve our Net Interest Margin Maximize gains on SBA/USDA loan sales . Grow Wealth Management income Drive down efficiency ratio as we work to achieve a 1% ROAA . Continue to grow TCE organically, with a target of 6.
Slide 23: History of Capital Transactions
HOLDINGS, relations! ‘organizatior History of Capital Transactions 93 Dec 1996 Private Placement of SIM in Preferred Stock at 9.75% Dec 1997 Private Plucement of S1.5M in Preferred Stock at 9.759% Nov 1998 3 for 2 Common Stock Split Jun 1999 i Sop 2001 : ‘87.33 per share today) Feb 2004 5 (Redemptio
Slide 24: Capital Plan
QCR HOLDINGS, INC. Capital Plan ® Conti t TCE organically, with a target of 6.5%. ¢ Conti tol f capital to benefit common shareholders. * Consider additional i isiti tuniti (Shelf Revistration filed June 2014) * Our capital plan is consisten | regulatory capital guidelines : (Basel TID. f the new
Slide 25: The Strategic Value of our Separate Charters
R IGS, INC. The Strategic Value iganizat aioe of our Separate Charters local decisions, local lution centralized and efficient manner Credit quality better than peers Historic deposit growth better than peers Historic loan growth better than peers Opportunities in Correspondent Banking, Wealth Manag
Slide 26: Key Differentiator: Group Operations
Key Differentiator: HOLD! CE IN Group Operations ¢ Accounting — John Oakes ¢ Customer Service/Item —— a Kathy Francque d John Rodrigue: p p ¢ Funds Management — John McEvoy mm R, Till 1 Chal 1, 7 ¢ Information Technology — Michael Wyffels and John Rodriguez ¢ Internal Audit — Tim Harding Rand Westlu
Slide 27: Key Differentiator: Correspondent Banking
iC. HOLD! CE IN Key Differentiator: Correspondent Banking iq) Pi Pp y * Depth of product offerings: - Loan Participations - Bank Stock Financing ~ Credit Card Services oF - Fed Funds Lines Wisconsin
Slide 28: Key Differentiator: Wealth Management
C 2¢ RR HOLDINGS, INC. Key Differentiator: Wealth Management itely $1.65 Billion in and $6. * Depth of product offerings - Asset Management - Trust Services - Estate Planning “ Sefer andRIA = Insurance ‘amily Office - Financial Plaming - Qualified Plans “big banks are going up market
Slide 29: Key Differentiator: SBA - USDA Lending
R HOLDINGS, INC. Key Differentiator: SBA - USDA Lending SBA Loans Originated for the Fiscal Year a 9/30/14 - Quad City Bank & Trust — 8" in th dollar volume) & Trust — 1* fc olume) Rockford Bank & Trust — 13" in tk ‘olume) 8' in the state of Ilinois (# of loans) USDA Lending for Fiscal Year Ending 9
Slide 30: Key Differentiator: m2 Lease Funds, LLC
HOLDINGS, relations! ‘organizatior Key Differentiator: m2 Lease Funds, LLC Assets (in millions) 201402770 Pre-Tax Earnings * Net Charge-osto Leases $875,651 0.14% $1,421,142 0.78% $784,424 033% 855,679 134% $952,741 101% $2,089,470 1.18% $3,367,182 0154 % $3,627,414 0.68% $ 4,005,887 * 050% ~ Marine
Slide 31: Thank You
Thank You For Your Time Today Questions
Slide 32: Appendix
HOLDINGS, INC. Appendix
Slide 33: Quad City Bank & Trust Highlights - Quad Cities
wt INC. El relations! ‘organizatior Quad City Bank & Trust ESivad Highlights — Quad Cities BANK & "RUST + The Rock Island Arsenal isthe largest government-ovmed military weapons ‘manufacturing arsenal in the United States H. Anderson, President & CEO + Alcoa ce Cte) is the world’s premier aerospace
Slide 34: Cedar Rapids Bank & Trust Highlights - Cedar Rapids
R HOLD! CE INC. relations! driven orga Cedar Rapids Bank & Trust Highlights - Cedar Rapids ae HANKS International Headquarters for Rockwell Coins adquat rlers for Aegon , + Downtown Revitalization ~ Double Tree by Hilton Cedar Rapids Convention rad J. Helling, President & CEO ‘Complex ones 2 year pr
Slide 35: Rockford Bank & Trust Highlights - Rockford
Thomas D. Budd, President & CEO Assets: $347 Million (as of 9/30/14) Population: 343,245 Market Deposits: $6.1 Billio rat shace and over $230 Million a Ranked ith ma <doposits in Rockford Major Employers Rockford Public Schoo! District Sei Anezan Hath Syston Chol la ee Pt Rockford Memorial Hospital
Slide 36: Community Bank & Trust Highlights - Waterloo/Cedar Falls
HOLDINGS, INC. (FCommunrry PS Stacey J, Bentley, President & CEO 's: $164 Million* bree of 9/30/14) Population: Market vibeesie ene lio “eo 10 bank wh 40% mart share and over 8127 Mllon in depos in Waterloo / Cedar Falls MSA Major Employers mega Cabine (CBE Companies, In. Bertch Cabinets Community B
Slide 37: Loan Composition
IN MILLIONS OF DOLLARS TYPE Commercial & Industrial Non Owner Occupied Commercial Real Estate Owner Occupied Commercial Real Estate Residential Real Estate Direct Financing Leases Installment and Other Consumer Commercial Construction/Land Development Dollar Mi Loan eon Composition eptember 30, 2014
Slide 38: Peer Credit Analysis
HO arc INC. Peer Credit Analysis Non-Performing Assets / Asset TICKER, NPAS/ ASSETS) me 1 sac a9 use ont A crt —2—Median FSC 4 THF 168 2604 un 089 sre 12 200 cose 1253 svar om 180 4 HBA 12 wee 325 “rman Amescan Sane, Ine. caso 04 Bank of Kentichy Financial Coperaton SKYE 164 laWestOne Finandl Grup.
Slide 39: Charge-Off Analysis
wee OL! IGS, INC. ‘organization Charge-Off Analysis arélationshi 2008-2014 021500) ‘23107 som) 23107¢) 200-2014 a (S00) ‘OCR HOLDINGS, INC. AND SUBSIDIARIES: CER ois, ne 0923 1 sonse2 37 a ‘vad cy ark ans vs Company 9002 ear 20% 72610 256% eae Rapid Barkan Ts Company 10930 7000 270% 9719 200% Rector
Slide 40: Securities Sector Review
C XC -R. HOLDINGS, INC. QCR oldings, Inc. Sauce: 224199004 FT Fan Repo soneoe provecreo oe Beck % Tol __Gantoss _BookYield_Repiee Tem eases Agency (FH) 37. (20,106) 1 " laa ‘co (Fes) 2 6 2 Comore (Fe) 1 3 aes Comore (Flat) 10 ey SIs MBs (Foes) 128, 1 (2730) 23 = ues 1 (9) 0 = Municipal Tox xem m, (6
Slide 41: Wholesale Funding
R GS, INC. QCR Holdings, Inc. unding ation’ ‘organi relationship ati ‘September 20, 2014 December 31,2013, (tier amounts in Brokered time deposits 8 95841 $61,990 196,500 231,950 ‘Stuctured repurchase agreements 120,000 $20,000 otal wholesale Funding $492,381 $423,280 ‘Soptomber 0, 2014 December 31,
Slide 42: Executive Management Team
one Sa eT el GER Holdings, Inc. Executive Management Team OUR MISSION: ICR Holdings LEFT TO RIGHT Larry Heling Doug Hultquist Tom Budd Bill Tank Todd Gipple John Rodriguez Front Row (sealed) John Engelbrecht
Slide 43: Executive Management Team
arc R HOLDINGS, INC. Executive Management Team DOUGLAS M, HULTQUIST, CPA RICH W. COUCH DANAL. President and Chief Executive Officer President and Chiet Executive Offeer, Executive Vieo President. Chief Lending Officer, 37 Years in Banking / Financial Services ma lens Funds UC Coder Rapids Bank Tst C
Slide 44: Contact: Moline, IL
3551 7% St Moline, ee 61265 wwnwqerh.com QCR HOLDINGS, INC.