Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (April 2018)
38 slides from Qcr's investor presentation, Apr 6, 2018
Slide 1: QCR Holdings, Inc. March 2018
HOLDINGS, INC. March 2018
Slide 2: Forward-Looking Statements
2 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, results of operations,
Slide 3: Forward-Looking Statements - Continued
3 (ix) 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 mergers, acquisitions and divestitu
Slide 4: Non-GAAP Financial Measures Notice
4 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 adjustments that have t
Slide 5: Corporate Overview
5 a relationship driven organization. ® CORPORATE OVERVIEW QCR Holdings, Inc. - Founded in 1993 Headquartered in Moline, IL Source: Company documents and SNL Financial. Financial data as 12/31/17. Ownership data as of 12/31/17. * Offices in MSA’s as of 12/31/17 NASDAQ – QCRH Russell 2000 ® Index Mem
Slide 6: History of QCR Holdings, Inc.
6 a relationship driven organization. ® HISTORY OF QCR HOLDINGS, INC. Source : Company documents. Subsidiary assets as of 6/30/17. 2005 - QCR Holdings founded by Mike Bauer and Doug Hultquist - $14 million IPO - Quad City Bank & Trust (De Novo) – Currently $ 1. 54 b illion in a ssets - Cedar Rapids
Slide 7: Investment Rationale
7 INVESTMENT RATIONALE • $4.0 billion asset bank holding company with critical mass in attractive and target rich markets in Iowa and Illinois - Number 2 bank with 14% market share in the Quad Cities, Iowa/Illinois, Number 2 in Cedar Rapids, Iowa with 15% share - Quad Cities is the I nternational He
Slide 8: Unique Products and Services
8 UNIQUE PRODUCTS AND SERVICES CORRESPONDENT BANKING • Competitively positioned with veteran staff, software, systems and processes • More than 187 relationships to date with $261 million in non - interest bearing deposits and $236 million in interest - bearing deposits at 12/31/17 • Approximately a
Slide 9: QCR Holdings, Inc. - Market Overview
9 $1,206 $878 $347 $124 $555 $7,274 $4,937 $5,560 $3,307 $16,999 $0 $6,000 $12,000 $18,000 Quad Cities, IA-IL Cedar Rapids, IA Rockford, IL Waterloo Cedar Falls, IA Des Moines/Ankeny, IA QCR Holdings Deposits Competitors Deposits QCR HOLDINGS, INC. - MARKET OVERVIEW Source: SNL Financial. Deposit da
Slide 10: Capitalizing on Opportunities in Our Markets
10 “CAPITALIZING” ON OPPORTUNITIES IN OUR MARKETS Distribution of Institutions in Targeted Markets (1) Source: SNL Financial. (1) Target area includes top 25 MSAs listed on Slide 12 excluding Chicago, Minneapolis, St. Louis and Omaha MSAs. Excludes mutual institutions. • Leverage capital strength an
Slide 11: Top MSAs - Iowa, Illinois, Wisconsin
11 a relationship driven organization. ® TOP 25 MSAS - Iowa, Illinois, Wisconsin Source: SNL Financial. Deposit data as of June 30, 2017. Growth CAGR figures based on 2017 - 2023 projected figures. Analysis current as of 12/11/17 MSA Deposits ( $M) Number of Institutions Number of Branches Total Pop
Slide 12: Financial Highlights
a HOLDINGS, INC. Financial Highlights
Slide 13: Total Consolidated Assets
13 a relationship driven organization. ® $0 $1,000 $2,000 $3,000 $4,000 $5,000 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 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 TOTAL CONSOLIDATED ASSETS Compound Annual Growth Rate
Slide 14: Income Statement Results & Key Earnings Metrics
14 a relationship driven organization. ® INCOME STATEMENT RESULTS & KEY EARNINGS METRICS Reported 12/31/13 Reported 12/31/14 Reported 12/31/15 Core 12/31/15 Reported 12/31/16 Core 12/31/16 Reported 12/31/17 Core 12/31/17 Net Income Available to Common $11.8 $13.9 $16.9 $20.9 $27.7 $29.4 $35.7 $36.3
Slide 15: Strong Commercial Loan Growth
15 Loan Growth Trend (1) STRONG COMMERCIAL LOAN GROWTH Source: Company documents. Dollars in millions. (1) Loan composition excludes deferred loan/lease origination costs, net of fees. (2) Includes Commercial & Industrial, Commercial RE and Direct Financing Leases . • 11.8% CAGR organic loan growth
Slide 16: m2 Lease Funds LLC Overview
16 a relationship driven organization. ® Lease Asset Generation m 2 LEASE FUNDS LLC OVERVIEW Source: Company documents. Dollars in millions . * Leases Outstanding includes Equipment Finance Agreements (EFAs) • National equipment leasing platform • Focus includes Computer systems; photocopy systems;
Slide 17: Asset Quality Overview
17 a relationship driven organization. ® 42.25% 35.44% 22.03% 0.28% Other Real Estate Owned & Repossessed Assets - 42.25% Nonaccrual Loans/Leases - 35.44% Troubled Debt Restructures - Accruing - 22.03% Accruing Loans/Leases 90+ Days PD - 0.28% ASSET QUALITY OVERVIEW Source: Company documents. Dollar
Slide 18: Evolution of Funding Base
18 a relationship driven organization. ® Average Funding Base - 2010 EVOLUTION OF FUNDING BASE Source: Company documents. Dollars in millions. Average Funding Base – 2017 2010 Cost of Funds: 1.79% 2010 Cost of Deposits: 1.13% 33.4% 13.7% 25.3% 27.6% Borrowings 33.4% Noninterest Bearing Deposits 13.7
Slide 19: Attractive Revenue Mix & Growth Trend
19 a relationship driven organization. ® Continued Strong Top Line Revenue Growth Trends ATTRACTIVE REVENUE MIX & GROWTH TREND Source: Company documents. Dollars in millions. (1 ) Excludes securities gains, bargain purchase gains, gains on sales of branches and loss on sale of OREO . Strong fee inco
Slide 20: Improving Returns for Shareholders
20 a relationship driven organization. ® Net Income to Common Shareholders IMPROVING RETURNS FOR SHAREHOLDERS Source: Company documents . Approximately 46.6% Net Income to Common CAGR From 2011 – 2017 $4.4 $9.1 $11.8 $13.9 $16.9 $27.7 $35.7 $0.0 $10.0 $20.0 $30.0 $40.0 2011 2012 2013 2014 2015 2016
Slide 21: Strategies to Continue to Drive Shareholder Value
21 a relationship driven organization. ® STRATEGIES TO CONTINUE TO DRIVE SHAREHOLDER VALUE • Continue strong organic loan and lease growth to maintain loans and leases to total assets ratio in the range of 73 - 78% (74.4% as of 12/31/17) • Continued focus on growing core deposits to maintain relianc
Slide 22: Summary of Competitive Advantages
22 a relationship driven organization. ® SUMMARY OF COMPETITIVE ADVANTAGES Critical mass in attractive and target rich markets in Iowa and Illinois 4 charter model allows subsidiary banks to customize solutions by market Differentiated product offering includes correspondent b anking, wealth m anage
Slide 23: Appendix
a HOLDINGS, INC. Appendix
Slide 24: Executive Management Team
24 a relationship driven organization. ® EXECUTIVE MANAGEMENT TEAM JOHN R. M c EVOY , JR. Executive Vice President, Chief Operations Officer & Cashier Quad City Bank and Trust Company 41 Years in Banking / Financial Services RONALD R. NAGEL Chief Executive Officer Community State Bank 41 Years in Ba
Slide 25: The Strategic Value of Our Separate Charters
25 • 4 distinct (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 • 4 charters supported by QCRH Group Operations team that delivers
Slide 26: Quad City Bank & Trust
26 QUAD CITY BANK & TRUST John H. Anderson, President & CEO Assets: $ 1.54 Billion (as of 12/31/17 ) Population: 381,723 Market Deposits: $8.5 Billion Ranked 2 nd with 14.22% market share and over $1,205 Million in deposits in Davenport - Moline - Rock Island MSA Finalist 2013 and 2014 – Quad Cities
Slide 27: Cedar Rapids Bank & Trust
27 CEDAR RAPIDS BANK & TRUST Larry J. Helling , President & CEO Assets: $1.31 B illion* (as of 12/31/ 17 ) Population: 270,363 Market Deposits: $5.8 Billion Ranked 2 nd with 15.10% market share and over $878 m illion in deposits in Cedar Rapids MSA 2014 & 2015 Finalist – Coolest Place to Work in Ced
Slide 28: Rockford Bank & Trust
28 ROCKFORD BANK & TRUST Thomas D. Budd, President & CEO Assets: $462 Million (as of 12/31/ 17 ) Population: 337,006 Market Deposits: $5.9 Billion Ranked 7 th with 5.9% market share and $347 Million in deposits in Rockford MSA Major Employers Rockford Public School District Swedish American Health S
Slide 29: Community Bank & Trust
29 COMMUNITY BANK & TRUST Stacey J. Bentley, President & CEO Deposits: $124 Million (as of 6 /30/ 17 ) Population: 170,094 Market Deposits: $3.3 Billion Ranked 11 th with 3.6% market share and over $124 Million in deposits in Waterloo - Cedar Falls MSA 2016 Employer Choice Award – Courier Communicat
Slide 30: Community State Bank
30 COMMUNITY STATE BANK Ronald M. Nagel, CEO Kurt A. Gibson, President Assets: $671 Million (as of 12/31/ 17 ) Population: 651,599 Des Moines/West Des Moines MSA Market Deposits: $17.6 Billion Ranked 8 th with 3.61% market share and over $554.8 Million in deposits in Des Moines – West Des M oines MS
Slide 31: Group Operations
31 a relationship driven organization. ® Group Operations • Accounting and Treasury – Beth Grabin and John Oakes • Compliance – Tonia Taylor • Customer Service/Item Processing – Kathy Francque • Deposit Operations – Beth Easterla, John Rodriguez, Todd Kerska • Funds Management – John McEvoy • Human
Slide 32: Non-GAAP Reconciliations
32 a relationship driven organization. ® Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share NON - GAAP RECONCILIATIONS Source: Company documents. Dollars in thousands. As of and for the Year ended December 31, ($ in thousands, except per share data) 2011 2012 2013 2014 2015
Slide 33: Deposit Market Share - Quad City Bank & Trust
33 a relationship driven organization. ® Deposit Market Share - Quad City Bank & Trust Institution Name Offices in MSA Deposits * Market Share 1. Wells Fargo Bank 15 $ 1,361.5 16.06 % 2. Quad City Bank & Trust 5 1,205.5 14.22% 3. Blackhawk Bank & Trust 17 946.5 11.16 % 4. U.S. Bank 11 829.3 9.78 % 5
Slide 34: Deposit Market Share - Cedar Rapids Bank & Trust
34 a relationship driven organization. ® Deposit Market Share - Cedar Rapids Bank & Trust Institution Name Offices in MSA Deposits * Market Share 1. U.S. Bank 10 $ 907.1 15.60 % 2. Cedar Rapids Bank & Trust ** 5 878.0 15.10 % 3. Wells Fargo Bank 10 665.7 11.45 % 4. Farmers State Bank 8 602.8 10.37 %
Slide 35: Deposit Market Share - Rockford Bank & Trust
35 a relationship driven organization. ® Deposit Market Share - Rockford Bank & Trust Institution Name Offices in MSA Deposits * Market Share 1. Alpine Bank & Trust 18 $ 1,116.3 18.90 % 2. JP Morgan Chase 6 686.3 11.62 % 3. Associated Bank 6 600.0 10.15 % 4. BMO Harris 10 574.7 9.73 % 5. Illinois Ba
Slide 36: Deposit Market Share - Community Bank & Trust
36 a relationship driven organization. ® Deposit Market Share - Community Bank & Trust Institution Name Offices in MSA Deposits * Market Share 1. Farmers State Bank 8 $ 644.8 18.79 % 2. U.S. Bank 6 391.1 11.40 % 3. Lincoln Savings Bank 5 334.9 9.76 % 4. First National Bank 6 306.6 8.94 % 5. Wells Fa
Slide 37: Deposit Market Share - Community State Bank
37 a relationship driven organization. ® Deposit Market Share - Community State Bank Institution Name Offices in MSA Deposits * Market Share 1. Wells Fargo Bank 19 $ 3,116.3 17.75 % 2. Bankers Trust 19 2,492.6 14.19 % 3. West Bank 8 1,311.5 7.47 % 4. U.S. Bank 15 1,098.3 6.25 % 5. Bank of America 4
Slide 38: Contact: Moline, Illinois, www.qcrh.com
3551 7 th Street Moline, Illinois 61265 www.qcrh.com