Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (October 2024)
24 slides from Qcr's investor presentation, Oct 25, 2024
Slide 1: Investor Presentation September 2024
Investor Presentation September 2024
Slide 2: Special Note Concerning Forward-Looking Statements
Special Note Concerning Forward - Looking Statements . This document contains, and future oral and written statements of the Company and its management may contain, forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the financial c
Slide 3: Who We Are
Our Vision Guides Us. Exceptional people providing extraordinary performance for our clients, shareholders, and communities. Our Mission Drives Us. We make financial dreams a reality. QCR Holdings, Inc. is a Midwest - based bank holding company, established in 1993, with a relationship - driven appr
Slide 4: QCR Holdings, Inc. Banks, Locations, Deposits and Market Share
QCR Holdings, Inc. (NASDAQ: QCRH) Location, deposit data and market share as of 6/30/24. * Cedar Rapids Bank & Trust includes Community Bank & Trust in the Cedar Valley. Entity 4 States/Region # Locations Deposits Market Share Quad City Bank & Trust Iowa/Illinois - Quad Cities 5 $2.1B #1 Cedar Rapid
Slide 5: Why Invest…Exceptional Performance
Since 2019, our company has increased adjusted earnings per share at an impressive 13.9%* compound annual growth rate, consistently outperforming many of our peers. 5 12/31/19 9/30/24 CAGR Adjusted Earnings Per Share $3.66 $6.80* 13.9% Tangible Book Value Per Share $28.15 $49.00 12.4% Loans $3.7B $6
Slide 6: Building a Long-Term EPS Track Record
QCRH Core EPS ($) Core EPS CAGR (%) 1.8% 13.9% 5 - year 6.4% 15.2% 10 - year 3.3% 9.2% 20 - year $1.99 $1.84 $1.79 $1.72 6 $3.08 $2.66 $2.31 $3.66 $3.96 $6.27 $6.80 $6.82 $6.80 $0.92 $0.53 $0 $2 $4 $6 $8 * 9/30/24 annualized. (1) KRX calculated as the median of the current 50 KRX constituents exclud
Slide 7: Top Tier Tangible Book Value Per Share Growth
* TBVPS of $40.68, $47.15 and $50.32 for 2022, 2023 and 9/30/24, respectively, excludes the impact of AOCI. (1) KRX calculated as the median of the current 50 KRX constituents excluding PACW as of 6/30/24. QCRH TBVPS ($) TBVPS (%) $14.70 $15.92 $17.08 $14.29 $17.50 $18.81 $20.11 $24.04 $22.70 $28.15
Slide 8: Adjusted Net Income/Earnings Per Share
$59 $63 $100 $115 $115 $115 $3.66 $3.96 $6.27 $6.80 $6.82 $6.80 2019 2020 2021 2022 2023 9/30/24* Adjusted Net Income Adjusted EPS 8 Note: 2019 excludes $12.3 million gain on sale from the RB&T transaction. Data as of 9/30/24. * 9/30/24 annualized. Adjusted Net Income/Earnings Per Share Adjusted Net
Slide 9: Diversified Business Lines Drive Outstanding Results
Correspondent Banking Specialty Finance Group Wealth Management Traditional Banking + Three diversified business lines powering exceptional results. Diversified Business Lines Drive Outstanding Results 9 Wealth Management • Broad scope of services • $6.2 billion in AUM as of 9/30/24 Correspondent Ba
Slide 10: Specialty Finance Group (SFG)
$28.3 $74.8 $61.0 $41.3 $91.4 $50.5 $60.0 $0 $20 $40 $60 $80 $100 2019 2020 2021 2022 2023 9/ 30/24* Guidance Fee Income Our SFG business is unique and offers: • Strong pipelines built on relationships • Complexity which creates significant barriers to entry by competitors • Consistent source of rev
Slide 11: Providing Municipal and Tax Credit Financing Solutions
QCRH (Lender) Borrower / Low Income Housing Project Tax Credit Equity Investors Loan Payments Tax Credits Equity Investment Loan Rent 11 Strong Borrowers • Experienced low - income housing developers • Tax credit investors are primarily other banks and corporate investors • Back - to - back swaps on
Slide 12: Low Income Housing Tax Credit Loans
Low Income Housing Tax Credit Loans Annual LIHTC Foreclosure Rate vs. Conventional Multifamily Delinquency Rate Data shown from the Cohn Reznick - Affordable House Credit Study, November 2023 LIHTC Industry Strength Offers: • Long track record of strong performance • Very low Loan - To - Values • Ex
Slide 13: LIHTC Securitization Highlights
Successful closing of first three securitizations selling nearly $500MM of LIHTC loans via Freddie Mac Programs • Strengthened capital and NIM • Increased liquidity Securitization will allow us to… • Provide capacity to sustain future LIHTC asset and capital markets revenue generation. • Enhance liq
Slide 14: Wealth Management Services
$3.1 $3.4 $4.2 $3.6 $4.1 $4.8 $1.0 $1.0 $1.2 $1.0 $1.2 $1.4 $0 $2 $4 $6 2019 2020 2021 2022 2023 9/ 30/24 Brokerage/ RIA Tr u st / I n v Mgmt $3.4 $4.6 $5.3 $12.0 14 $12.6 $15.3 $14.5 $15.6 $17.5 $0 $6 $12 $18 $24 2019 2020 2021 2022 2023 9/ 30/24* * Annualized Wealth Management Revenue ($M) CAGR fr
Slide 15: Strong Asset Growth
$2.3 $3.2 $3.8 $4.9 $5.7 $6.1 $6.7 $8.5 $9.1 $0.6 $0.3 $0.6 $1.2 $0 $2 $4 $6 $8 $10 2016 2017 2018 2019 2020 2021 2022 2023 9/30/24 Acquired Assets Total Assets (1) Rockford Bank & Trust assets were removed from this data. (2) Includes $349.2 million of the assets of m2 Equipment Finance, as this en
Slide 16: Loan Growth Driven by Commercial Lending
Loans ($B) CAGR from 2019 - 9/30/24: 13.8% Loan Growth Driven by Commercial Lending Commercial Loans Represent 92% of the Loan Portfolio as of 9/30/24 $3.7 $4.3 $4.7 $6.1 $6.5 $6.8 $3.3 $3.9 $4.3 $5.7 $6.0 $6.3 $2 $1 $0 $3 $4 $5 $6 $7 $8 2019 2020 2021 2022 2023 9/30/24 Total Loans Commercial Loans
Slide 17: Diversified Loan Portfolio
Diversified Loan Portfolio Construction LIHTC $914 (73%) Commercial Construction $284 (22%) Residential Construction $10 (1%) Land Development $48 (4%) Multi - familty - LIHTC $974 (75%) Multi - family - non LIHTC $324 (25%) Loan Portfolio Composition ($MM) $6.8 Billion as of 9/30/24 Construction &
Slide 18: Our High-Performing CRE Portfolio
• CRE is 55% of total loans • CRE - Office represents only 3% of Total Loans • 10 CRE - Office loans > $3 million (total of $53 million) • CRE - Office is primarily smaller facilities (three stories or less) and located within the QCRH footprint • Negligible non - performing CRE - Office loans of $2
Slide 19: Strong Credit Culture Supported by High Levels of Reserves
NPAs / Assets 0.56% 0.27% 0.25% 0.11% 0.05% 0.40% 0.39% 0.00% 0.30% 0.60% 2018 2019 2020 2021 2022 2023 9/30/24 1.68% 1.43% 1.30% 1.43% 1.24% 1.33% 1.24% 2021 9/30/24 2022 QCRH 2023 Proxy Peers ACL – Loans HFI/Total Loans (%) 19 Strong Credit Culture Supported by High Levels of Reserves Focused on m
Slide 20: Consistent Deposit Growth
Consistent Deposit Growth Core Deposits* Represent 95% of Total Deposits * Core deposits are defined as total deposits less brokered deposits. Balances as of 9/30/24 Total Deposits ($B) CAGR from 2019 - 9/30/24: 13.0% Core Deposit CAGR from 2019 - 9/30/24: 16.0% $3.9 $4.6 $4.9 $6.0 $6.6 $7.0 $3.8 $4
Slide 21: Deposit Base and Composition
Retail 24% Commercial 59% Brokered 5% Correspondent 12% DDA 51% Brokered 5% Savings 2% Time Deposits 13% MMDA 29% 21 Balances as of 9/30/24 Total Deposit Composition Total uninsured and uncollateralized deposits were $1.5 billion or only 21% of total deposits. TOTAL $6.8 Billion TOTAL $6.8 Billion T
Slide 22: Robust and Diverse Liquidity
$0.1 $0.5 $0.7 $0.1 $0.4 $1.4 Total Liquidity Sources (Ex. AFS and HTM Bonds) Total Uninsured Deposits * $3.2B $1.5B Dollars In billions. Balances as of 9/30/24. *Uninsured deposits exclude deposits that are FDIC insured, State insured, collateralized, or insured through the ICS/CDARS program. Broke
Slide 23: Our Strong Capital Position
Successful subordinated debt raises in 2019, 2020 and 2022 bolstered total risk - based capital 9.25% 9.08% 9.87% 7.93% 8.75% 9.24% 13.33% 14.95% 14.77% 14.28% 14.15% 13.87% 4.00% 8.00% 12.00% 16.00% 2019 2020 2021 2022 * 9/30/24** TCE Ratio 2023 TRBC Ratio Tangible Common Equity & TRBC Ratios * Cap
Slide 24: COMMUNITY
COMMUNITY STATE BANK Bank CR HOLDINGS, INC