Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (April 2014)
35 slides from Qcr's investor presentation, Apr 7, 2014
Slide 1: 2013 Financial Presentation
HOLDINGS, INC. p driven organizati 2013 Financial Presentation
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
FORWARD-LOOKING STATEMENTS - Continued (i) 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) the risks of
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 ad
Slide 5: Table of Contents
Table of Contents WhOWGATC cence 6 Financial Information ................ 9 Focus Areas 2014 ..................05 14 Capital History and Plan.............. 15 Strategic Advantages ................ AT Key Differentiators ...........0........ 18 Appendix..........00.000 ee 24
Slide 6: History of QCR Holdings, Inc.
History of QCR Holdings, Inc. 2007 2012 2013 2013 2013 ‘Assos as of December 31, 2019, *De Nowe Founded by Mike Bauer and Doug Hult ‘Quad City Bank & Trust® ~ Currently $1.25 Billion in Assets (Quad City Bancard Formed Cedar Rapids Bank & Trust® ~ Currently $804 Million in Assets (includes Community
Slide 7: Corporate Overview
Corporate Overview QCR Holding ‘SYMBOL - QCRH $2.39 Billion in Assets $1.46 Billion in Loans $1.65 Billion in Deposits 14 Facilities Quad City Bank & Trust (5) Cedar Rapids Bank & Trust (2) Rockford Bank & Trust (2) m2 Lease Funds LLC (1) Community Bank & Trust * (3) Shares Outstanding: 7.9 Million
Slide 8: Top MSAs / Iowa and Illinois
HOLDINGS, INC. ‘relationship driven organization* Top 25 MSAs / lowa and Illinois scold Projects Mean reer aot 25868 12559 Deverpert Meine Rock hon AIL 7718 3° 161 Reet 080 ey 178 Cece Raids. 1A 5200 8 4a (Champn-rbana 4900 3 2m Sprngtld 4923 2 28 (te Sao I. 3680 3 049) few iy 3202 a 70 ‘atria Cer F
Slide 9: Total Consolidated Assets
Total Consolidated Assets ‘CAGR 1994-2013 24.09% ‘CAGR 1994-2007 32.26% CAGR 2008-2013 8.32% Fd 3 }&T (2008) B&T) (201 N 2 2 8 8 BT (1994) CRBT (2001) \ e 8 13 Deco Dee 85 ee 96 Dee 97 Dee 98 Dee 99 ec.00 Dec ot Dec 02 ec 08 Dec os Dee 05 Dee 06 Dec 07 ec 08 ec 08 Dec.10 ect Dee 12 Dee IN MILLIONS O
Slide 10: Consolidated Balance Sheet 2009-2013
Consolidated Balance Sheet 2009-2013 ‘Ax of December 3 (otousnes) ath fea sl an etek rn 4% wo77 Ow woes ok re ee Secures srs 20% aur 2% soz 20% emzzs0 20K our 200 Netiunatases amiss 60% 14824 63% 1181958 6% terse ork tasnes2 com, ter asses 15505 6% 1597 9782 ox tase 400 0% vee 18% 357104 10% ssosc0
Slide 11: Summary of Financial Results 2009-2013
Summary of Financial Results 2009-2013 Net interest income Nom-interest income Nominterest expense Pre-tax pre-provision Provision expense income before taxes Income taxes, Net income Less: net income attributable to non-controling interests Net income attributable to GCR Holdings, Ine Diluted Earni
Slide 12: Corporate Overview
Corporate Overview Community National Bank Founded in 1997 Headquartered in Waterloo, I Acquired b $ 277 Million in assets $ 246 Million in deposits $191 Million in loans Resulting Proforma Cedar Rapids Bank & Trust. Community National Bank Q4 2013 + Sale of Mason City Branches ($23MM loans/$55MM de
Slide 13: Year End Stock Metrics 2009-2013
arelationship Year End Stock Metrics 2009-2013 $17.00 @TAViShare wio ACC! $15.00 eStock Price $13.00 -eTaVviIsnare $11.00 $9.00 $7.00 2009 2010 2011 2012 2013 Diluted EPS ($0.46) $0.53 $0.92 $1.85 $2.08
Slide 14: Focus Areas for Improving Shareholder Value in 2014
Focus Areas for Improving Shareholder Value in 2014 em Continue to expand our Investor Relations plans Grow loans Maintain and improve our Net Interest Margin Maximize SBA/USDA gains on loan sales Grow Wealth Management income Improve liquidity in our stock Drive down efficiency ratio as we work to
Slide 15: History of Capital Raises
History of Capital Raises Oct 1993, Dec 1896 Dec 1997 Nov 1998 Jun 1999 ‘Sep 2001 Feb 2004 ‘May 2004 Dec 2004 ‘May 2005 Feb 2008 Nov 2008 Dec 2007 Feb 2009 ‘Mar 2010 Jun 2010 Sep 2011 Nov 2011 Jun 2012 May 2013 ‘Mar 2014 IPO of $14M in Common Stock at $10 per share (split adjusted = $4.44 per share
Slide 16: Capital Plan
Capital Plan Continue to redeem SBLF organically. Continue to grow TCE organically - Series E conversion added >100bps of TCE. Continue to leverage non-common sources of capital to benefit common shareholders Consider a capital raise for additional accretive acquisition opportunities. Our capital pl
Slide 17: Strategic Advantages
Strategic Advantages 3 distinet (yet similar) operating charters — able to customize solutions by market Managed by local veteran bankers, governed by local Board of Directors, local decisions, local solutions, enhanced market specific knowledge 3 charters supported by QCRH Group Operations team tha
Slide 18: Key Differentiator: Correspondent Banking
Key Differentiator: Correspondent Banking + Uniquely positioned duc to veteran Correspondent bankers on our team. + Competitively positioned with software, systems and processes. + Depth of product offerings: - Online Cash Management —_- Image Cash Letter System - Loan Participations - Bank Stock Fi
Slide 19: Key Differentiator: Group Operations
relationship: Key Differentiator: Group Operations * Accounting — John Oakes * Customer Service/ltem Processing — Kathy Francque * Deposit Operations — Beth Easterla and John Rodriguez * Funds Management — John McEvoy * Human Resources ~ Jil] DeKeyser * Information Technology — Michael Wyffels and J
Slide 20: Key Differentiator: Wealth Management
Key Differentiator: Wealth Management + As of December 31, 2013: Approximately $1.58 Billion in Trust (and related) accounts and $625 Million in Brokerage (and related) accounts. + Competitively positioned due to our veteran team of Wealth Management professionals + Uniquely positioned with software
Slide 21: Key Differentiator: SBA - USDA Lending
Key Differentiator: SBA - USDA Lending SBA Loans Originated for the Fiscal Year Ending 9/30/13 - Quad City Bank & Trust - 3rd in the state of Iowa for lowa chartered banks (dollar volume) - Cedar Rapids Bank & Trust — Ist in the state of lowa for Iowa chartered banks (dollar volume) - Rockford Bank
Slide 22: Key Differentiator: m2 Lease Funds, LLC
Key Differentiator: m2 Lease Funds, LLC + Effective September 2012, Quad City Bank & Trust now owns 100% of m2 Lease Funds, LLC. + Quad City Bank & Trust acquired 80% ownership August of 2005 Assets (nmiions) Pre-Tax Eamings Net Charge. to Leases 7006 3580 5 875051 014% 2008 $797 $ 784424 033% 2010
Slide 23: Thank You, Questions
Thank, You, Fo Questions
Slide 24: Appendix
Appendix
Slide 25: Quad City Bank & Trust
IGS, INC. nderson, President & CEO nH. Al Assets: $1.25 Billion Population: 380,858 Market Deposit ‘Mol pp Ri Excelon line, Rock island MSA located on the — 2 ~@ National Rankings - Quad jock Island Arsenal is the largest government-owned miliary weapons manufacutng acenalin the United States * Alco
Slide 26: Cedar Rapids Bank & Trust
edar Rapids Bank & Trust Cedar Rapids State Rankings, National & + Top 12 Best Cities for High Paying Jobs (Kiplinger, Jan 2012) + Top 10 Fourth Economy Community (Fourth Economy Consulting, Dec 2012) + America’s Best Cities on the Rise (Smarter Travel, age) (of 200) (Forbes, Jun 2012) Be Best Place
Slide 27: Rockford Bank & Trust
nO INC. arelat tion’ Rockford Bank & Trust National & State Rankings, Rockford ROCKFORD co Thomas D. Budd, President & CEO Assets: $339 Million + Top 10 in the Most Affordable MSA's in America + Fastest growing metro market in the state of llinois its: ill ae Pan * omtighest cencntaten of Aroerae po
Slide 28: Community Bank & Trust
Community Bank & Trust ( (iSO) IMUNITY — NRE AS cey J. Bentley, President & CEO + Waterloo-Cedar Falls is a Blue Zones Demonstr Assets: $176 Million + Community Bank & Trust became the 1* lowa bank designated as a Blue Zone Worksite jon Community Henrede 168,7! Ket Dep 0 Cedar Falls, MSA 7 Billion i
Slide 29: Loan Portfolio Composition
relationship d Loan Portfolio Composition December 31, 2013 IN MILLIONS OF DOLLARS TYPE Dollar Mix Percent Mix ‘Commercial & Industrial $ 4317 30% ‘Commercial Construction/Land Development $7.8 4
Slide 30: Peer Credit Analysis
Peer Credit Analysis Non-Performing Assets / Assets NPAs /TOTALASSETS Peer Group: Heartand Fanci USA ne, wn 16 30, ‘eat Sasthen Banco, he see ser _— pa Fest Busey Coperton euse oss 3007 Entree Fanci Seniees Cop FSC 430 Feat Franc Corporation THF 1590 2507 Laketna ancal Compeaon ro at Munsee FandalGr
Slide 31: Charge-Off Analysis
Charge-Off Analysis 3t
Slide 32: Consolidated Securities Portfolio
QCR Holdings, Inc. Consolidated Securities Portfolio Pav 000) Book Vl (008) ait Vt (005) nested GsinLor (000) ‘aaron Gis (005) ‘Aosreste Loree (0000) ‘Yi (Projected Spee) ‘Yet t mot CPR) ‘erage le rejects Speeds) Pacentn Amertzing Saunas Darton Yield Peete Spoees) Yet mont CPR) ‘Average lle Projecte
Slide 33: Consolidated Wholesale Funding
QCR Holdings, Inc. Consolidated Wholesale Funding December 1, 2013 December 31,2012 (cote amounts in thousands) Brokeredtime deposts 5 61900 $ 45320 Federal Home Loan Bank aavances 2312380 202380 ‘Structured repurchase agreements 130.000 130,000 Wholesale Funding $423,200 3377870 December 31,2013 De
Slide 34: Executive Management Team
LEFT To RIGHT QCR Holdings, Inc. Executive Management Team OUR MISSION: 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
Slide 35: Executive Management Team
Executive Management Team DOUGLAS M. HULTQUIST, CPA President and Chet Executive Oar 236 Yeors in BankingFinancil Sevices TODDA. GIPPLE, CPA Executive Vice Presiden, Chet Operating Offcer and vet Financial Offer 28 Years in BankingFinancil Senices JOHN H. ANDERSON President and Chet Executive Office