Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Raymond James U.S. Bank Conference 2015
40 slides from Qcr's conference presentation, Sep 9, 2015
Slide 1: QCR Holdings, Inc. Raymond James U.S. Bank Conference September 2015
HOLDINGS, INC. Raymond James U.S. Bank Conference September 2015
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS but are not limited to, fitabilty .cted .” “estimate,” “project,” are He generally identifiable by use of the words “believe,” “expect,” “intend,” “anticipate, eek,” “target,” “potential,” “focus,” “may,” “could,” “should” or similar expressions, These forward-looking incl
Slide 3: Forward-Looking Statements - Continued
FORWARD-LOOKING STATEMENTS - Continued “Risk Factors” Commission.
Slide 4: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES GAAP financial measure.
Slide 5: Corporate Overview
CORPORATE OVERVIEW NASDAQ -QCRH $2.5 Billion in Assets $1.7 Billion in Loans $1.8 Billion in Deposits 13 Facilities Quad City Bank & Trust (5) Cedar Rapids Bank & Trust (2) Rockford Bank & Trust (2) m2 Lease Funds LLC (1) ‘Community Bank & Trust (3) siege Outstanding: 1.8 Million Ownership: Insiders
Slide 6: Equity Offering Strategic Highlights
EQUITY OFFERING STRATEGIC HIGHLIGHTS industry peers hi targeted 1.0% ROAA Better positi M&A opportunities a relationship driven organization.° e
Slide 7: Recent Equity Offering Results
RECENT EQUITY OFFERING RESULTS over the close the prior day n Share Offering Changes in Capi 3/31/15 Actual 6/30/15 Actual Tangible Common Equity / Tangible Assets 5.88% 8.15% Tier 1 7.24% 10.25% Tier 1 Risk Based Capital / Average Tangible Assets 9.00% 11.99% 10.30% 13.25% a relationship driven org
Slide 8: Investment Rationale
INVESTMENT RATIONALE lowa with 8% sh:
Slide 9: Full Service Institution
FULL SERVICE INSTITUTION Correspondent Banking Wealth Management systems and processes $1.74B in Trust (and related) accounts and $668M in Brokerage (and related) accounts + Full range of product offerings including Trust Services, Brokerage and RIA, Ass et Me nag jement, Estate ee ona Planning and
Slide 10: QCR Holdings, Inc. - Market Overview
QCR HOLDINGS, INC. - MARKET OVERVIEW * Meaningful market share position in ach MSA’sarved'with room for Deposit Market Share Overview ($M) h continued growt! Market Rank 2 16 lar MSAs in IL and IA by total deposits + All 4 MSAs are projected to have 008 household income growth above the national ave
Slide 11: Capitalizing on Opportunities in Our Market
“CAPITALIZING” ON OPPORTUNITIES IN OUR MARKET Leverage renewed capital strength and relationship Distribution of Institutions in Targeted Markets driven Broach to capture ester organo market and relat . easily pursue accretive acquisition 140 ‘opportunities | 33 + Operating markets are highly fragme
Slide 12: Top MSAs / Iowa and Illinois
TOP 25 MSAS / IOWA AND ILLINOIS Modan Projected Household Mactan HAI tneome cAGR (ChieagoNaperile Ein, ILAN-WL ‘Saint Louis, MOA, Wateoo-Cedar Fal 4 gi a Madison Keokuk, HlL-MO 9.670.110 023 % 2406628 one 951 ost 14.201 18 190887 068 408 031 399,628 025 848 217 on. 340,468 (©27) 39,754 037 169.659 o
Slide 13: Financial Highlights
HOLDINGS, INC. a relationship driven organization’ Financial Highlights
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS TEE OSGI “S15 SOAS | [reat Assets i780 s1897 s1967 004 2.595 $2825 $2402 $2543 [Teiat LoansiLeases 1244 173 1201 1287 1.460 1630 gs faa [Ttat Deposits ‘1089 an 1.205 1374 1987 ‘i680 1734 1837 [range Corman Equity” 6 6 a 113 130 us 207 lconsotidated Capital feeracar 339 3 386 32
Slide 15: Total Consolidated Assets
TOTAL CONSOLIDATED ASSETS CAGR From 1994-2014: 21.26: S i Ay 2 S g 3s 2 = & g S 2 o
Slide 16: Strong Commercial Loan Growth
STRONG COMMERCIAL LOAN GROWTH gine ae Direct Financing Lease S$ grew approximately 41% and be Ceascnay, from 2013 to 2015Q2 pr than 85% of the portfolio + 2013 loan growth supplemented by acquisition of Community National Bancorporation re: Company documents. Dols in millon. ‘Source: Company a (2) L
Slide 17: m2 Lease Funds LLC Overview
m2 LEASE FUNDS LLC OVERVIEW + National equipment leasing platform + Focus includes commerci Squipmentoulking ¢ and canton mac 8 3 2 = 3 3 2 8 a 2 ay s£ and vehicles classified as heavy equipment + High yield poe average gross yield for YTD Q2 approximately ah + Historically strong asset quality * Ta
Slide 18: Asset Quality Overview
ASSET QUALITY OVERVIEW Classified Loans ($M) & NPAs / Assets Nonperforming Assets Composition — 2015Q2 Other Real Estate Owned Rep. Assets 5.2% 2.06%, sooo || 2.00% zon 2012 201d | 201502 mmxClassified Loans (SM) —NPAs/ Assets (%) down more than 60% from 2011 Seuce: Company documents. Data in mitens
Slide 19: Evolution of Funding Base
EVOLUTION OF FUNDING BASE Average Funding Base ‘unding Ba: Noninterest ; Bearing Noninterest Ber Deposits Borrowings Bearing nrowangs 21.9% Deposits Bete 13.7% }eposit 27.3% $1,684M ae an oar Time Deposits Deposits Time Deposits Deposks 27.8% 25.3% 16.7% ~ Source: Company documents. Dots in milons a
Slide 20: Balance Sheet Restructure Results
BALANCE SHEET RESTRUCTURE RESULTS nnu: + Balance sheet Amount Weighted Pi x restructure provides (S milions) it Average an estimated 18-20 at Payoff Rate ints®) Subordinated Debt (Series A) Repayment cei 6.00% $0.2 go-forward basis 3ML + + Estimated after-tax Senior Term Debt Serrtt $15.3 300bps $0.
Slide 21: Attractive Revenue Mix & Growth Trend
ATTRACTIVE REVENUE MIX & GROWTH TREND Continued Strong Top Line Revenue Growth Trends ($M) 2010 «2011 «2012-2013 2014» 2014Q2 20152 YTD YTD "Net Interest Income Prous Seale and complement fo spread revenut + Key Differentiators: - Wealth Management ($2.4B in AUM) - Correspondent banking (173+ relati
Slide 22: Improving Returns for Common Shareholders
IMPROVING RETURNS FOR COMMON SHAREHOLDERS Net Income to Comm. holders ($M) 2014 ‘PPI ly 2010 2011 2012 2013 2014 Source Company documents. Corsi mons. a relationship driven organization.® e
Slide 23: Strategies to Achieve a 1.0% ROAA
STRATEGIES TO ACHIEVE A 1.0% ROAA & 09 f 6/30/15 + Continued reductions in wholesale funding to less than 15% of assets (26% as of 3/31/15), now 21.7% as of 6/30/15 ra i i USD, d SBA | i , to . Ith i 15% annually (14.8% CAGR from 2010-2014) . if i than peer level: + Participat markets to further boo
Slide 24: Concluding Remarks
CONCLUDING REMARKS * 3 charter model all idi i: it y market i i includ ing, wealth management, leasing and SBA/USDA lending + Strong asset quality + Attractively p institution: a relationship driven organization.° e
Slide 25: Appendix
HOLDINGS, INC. Appendix
Slide 26: History of QCR Holdings, Inc.
HISTORY OF QCR HOLDINGS, INC. 1993 2015 ‘Quad City Bancard Formed ‘Quad City Bancard sells Merchant Acquiring Business Sale of First Wisconsin Bank & Trust — Milwaukee, WI S65MM capital raise sue Caner docansns tet sen are a relationship driven organizatio
Slide 27: Executive Management Team
EXECUTIVE MANAGEMENT TEAM 001 HULTAUIST, cf Dresden and Chet Executve Ofer Yeors in Banking /Finencal Services TODA, GIPPLE, CPA Executive Vice Pres Chie Operaing Otc ond Chet Franc Ofer Pking /Firenciel Services JOHN H. ANDERSON President and Chief Executive Oficer, (Quad City Bank and Trust Compan
Slide 28: The Strategic Value of Our Separate Charters
THE STRATEGIC VALUE OF OUR SEPARATE CHARTERS ie) local decisions, local solution: than peer than peer Rapid: Top it i Fall and m2 Leasing
Slide 29: Quad City Bank & Trust
QUAD CITY BANK & TRUST John H. Anderson, President & CEO ts: ot 3 Billion (as of 6/30/15) Ranked 2° wih 10:8% market share and over $860 Mion in deposits in Davenport Mline-Rock island MSA Highlights - Quad Cities + The Rock Island Arsenal isthe largest govemment-owned military weapons _ramuaci sali
Slide 30: Cedar Rapids Bank & Trust
CEDAR RAPIDS BANK & TRUST hlights - Cedar Rapids CEDAR, e ‘i B| RAPIDS + Itemational Headauater or Recall Cone Wane + US, Headquarters for Aegon U RUST « Dowiown Reviatization ~Couble Tie by Hiton Cedar Rapids Convention Complex 44 2 yer project ested in 100,000 sat convention center Larry J. Hellin
Slide 31: Rockford Bank & Trust
ROCKFORD BANK & TRUST Thomas D. Budd, President & CEO ighlights - Rockford (August 2015) ‘ world) wi Population: 342,466 + Rack Valley College building $5. 18M aviation maintenance training center to better serve the region's aerospace industry and atract business and jobs to Rackford — opening Fall
Slide 32: Community Bank & Trust
COMMUNITY BANK & TRUST (ks SCOMMUNTTY Highlights — Waterloo/Cedar Falls atonal saben’ a la Sia omic a a Stacey J. Bentley, President & CEO investment by Deere in Waterloo inthe last decade equals $18 Midport instal Parc Population: 170,496 The cy of for $124 in funcing forthe Techworks Campus Market
Slide 33: Group Operations
Group Operations A i lohi I J * Customer Service/ltem Processing — Kathy Francque Easterla and « Funds Management — John McEvoy + Human Resources — Jill Dekeyser and Shellee Showalter + Information Technology — Michael Wyffels and John Rodriguez + Internal Audit — Tim Harding Westlund + Loan Operati
Slide 34: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share [As of and forthe ‘As of and for ‘Year Ended uae ended December 34, ne 3 (S inthousands, exept par share dat) 705 2 Er 77 re Teg conten ay S 125595 § S 5403 § Mosse SATSTT $1407] «$197 eve Petered Ea
Slide 35: Capital Ratios & Valuation
CAPITAL RATIOS & VALUATION Financial Institutions with Assets Between $500M. Pricing Metrics as of 5/8/15 ‘Summary Financial Performance Median: Median: #of Institutions TCE Level P/TBV EPS On ROAE RoaTGE 1 > 11% 104.7% 14.0x 0.89% 7A% 73% 58 10% - 11% 122.7% 15.3x 0.93% 8.8% 9.6% 82 9% - 10% 124.9%
Slide 36: Deposit Market Share - Quad City Bank & Trust
Deposit Market Share - Quad City Bank & Trust Institution Name Market Share 4. Wells Fargo Bank 17 1,303.8 16.43 % 2. Quad City Bank & Trust 5 852.8 10.75 % 3. Blackhawk Bank & Trust 16 8311 10.47 % 4,U,S, Bank 1 660.5 8.32 % 5. Triumph 10 525.5 6.62% 6. First Midwest Bank 6 362.3 457 % 7. Bank Orio
Slide 37: Deposit Market Share - Cedar Rapids Bank & Trust
Deposit Market Share - Cedar Rapids Bank & Trust Institution Name Market Share 41.U.S. Bank 10 1,113.4 19.76 % 2. Wells Fargo Bank 12 611.2 10.85 % 3. Farmers State Bank 8 560.0 9.94 % 4. Cedar Rapids Bank & Trust 2 464.4 8.24 % 5. Hills Bank & Trust 6 346.2 6.14% 6. Bankers Trust Co. 3 311.7 5.53 %
Slide 38: Deposit Market Share - Rockford Bank & Trust
Deposit Market Share - Rockford Bank & Trust Institution Name Market Share 4. Alpine Bank & Trust 7 1,033.1 19.70% 2. JPMorgan Chase 7 630.0 12.01 % 3. BMO Harris "1 580.9 11.06 % 4, Associated Bank 6 459.6 8.76% 5. Riverside Community Bank 4 346.2 6.60 % 6. Blackhawk Bank 5 335.9 6.41% 7. PNC Bank
Slide 39: Deposit Market Share - Community Bank & Trust
Deposit Market Share - Community Bank & Trust Institution Name Market Share 1. Farmers State Bank 386.5 13.00 % 2. U.S. Bancorp (MN) 338.2 11.37% 3. Wells Fargo Bank 316.4 10.64% 4, First National Bank 265.2 892% 5. Peoples Savings Bank 248.5 8.36 % 6. Lincoln Savings Bank 239.8 8.07 % 7. Regional F
Slide 40: 3551 7th Street, Moline, Illinois
3551 7" Street Moline, Illinois 61265. www.qerh.com
QCR Holdings — Raymond James U.S. Bank Conference 2015 on 6ix