Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (July 2018)
42 slides from Qcr's investor presentation, Jul 31, 2018
Slide 1: QCR Holdings, Inc. July 2018
exceptional QCR HOLDINGS, INC. July 2018
Slide 2: Forward-looking statements
2 This document contains, and future oral and written statements of QCR Holdings (“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 condition, results of operations, pla
Slide 3: Non-GAAP financial measures
3 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 4: QCR Holdings' Mission, Vision and Values
4 QCR Holdings will be ranked in the top quartile ROAA of peer firms by 2020 and continue to reward shareholders and employees while strengthening our communities The mission of QCR Holdings is to make our clients’ financial dreams a reality OUR MISSION OUR VISION OUR VALUES – LIVED AND EXPECTED OF
Slide 5: Pro forma balances and key strengths
5 a relationship driven organization. ® $4.7B Assets $3.6B Loans $3.7B Deposits $3.8B AUM Local charters provide a competitive advantage Efficient centralized Group Operations Serving attractive Midwest markets Strong credit and asset quality High touch service approach Significant expansion opportu
Slide 6: Corporate Overview
6 a relationship driven organization. ® CORPORATE OVERVIEW Assets: $4.7 Billion Loans: $3.6 Billion Deposits: $3.7 Billion Wealth Management: $3.8 Billion ▪ $2.7 Billion in Trust Accounts ▪ $1.1 Billion in Brokerage Accounts 27 Branches/Offices QCR Holdings (NASDAQ: QCRH) – Founded in 1993 Source: S
Slide 7: The Value of Separate Charters
7 THE VALUE OF SEPARATE CHARTERS Source: FDIC deposit market share data as provided by S&P Global (as of 6/30/17). Our five distinct, yet similar, operating charters enable us to customize client solutions by market Managed and governed by local veteran bankers and boards with strong community ties
Slide 8: History of Expanding into Attractive Markets
8 a relationship driven organization. ® MISSOURI ILLINOIS IOWA WISCONSIN HISTORY OF EXPANDING INTO ATTRACTIVE MARKETS 1993 QCR Holdings founded by Michael A. Bauer and Douglas M. Hultquist - $14 million IPO 1994 Quad City Bank & Trust (De Novo) 2005 Rockford Bank & Trust (De Novo) Quad City Bank & T
Slide 9: Unique and Diversified Products and Services
9 a relationship driven organization. ® ▪ $4.3 million in gains on the sale of government guaranteed loans and swap fee income in 2017; $3.0 million YTD 2018 ▪ Dedicated and experienced servicing and portfolio management staff with specialized expertise in government guaranteed loans ▪ Provide inter
Slide 10: Strategies to Continue to Drive Shareholder Value
10 a relationship driven organization. ® Ongoing emphasis on gains on sale of USDA and SBA loans, and fee income on Swaps, as a more significant and consistent component of core revenue STRATEGIES TO CONTINUE TO DRIVE SHAREHOLDER VALUE Loan & Lease Growth Grow Core Deposits Fee Income Grow Wealth Ma
Slide 11: Market Opportunities and Acquisition Strategy
11 a relationship driven organization. ® MARKET OPPORTUNITIES AND ACQUISITION STRATEGY Source: SNL Financial. (1) Target area includes top 25 MSAs throughout these states excluding Chicago, Minneapolis, St. Louis, Kansas City and Omaha MSAs. Excludes mutual institutions. ▪ Fragmented markets and ong
Slide 12: Overview of the SFC Bank Transaction
12 a relationship driven organization. ® ▪ Meaningful EPS Accretion: 8% accretive in the first full year ▪ Tangible book value dilution of approximately 4% ▪ TBV earnback period of 3 years (1) ▪ Capital ratios at closing in excess of well - capitalized thresholds ▪ Internal rate of return of approxi
Slide 13: Financial Highlights
OCR HOLDINGS, INC. Financial Highlights
Slide 14: A Consistent Track Record of Asset Growth
14 a relationship driven organization. ® A CONSISTENT TRACK RECORD OF ASSET GROWTH Total Consolidated Assets $ in billions Asset growth has been driven by a combination of organic growth and strategic acquisitions (1) Pro forma for SFC Bank merger which closed on 7/1/18. Note: 2012 - 2017 historical
Slide 15: Loan Growth Driven by Commercial Lending
15 Commercial loans (1) represent approximately 84% of the loan portfolio LOAN GROWTH DRIVEN BY COMMERCIAL LENDING (1) Includes Commercial & Industrial, Commercial RE and Direct Financing Leases. (2) Loan composition excludes deferred loan/lease origination costs, net of fees. $ in billions (2) Orga
Slide 16: Deposit Growth Driven by Core Deposits
16 Core deposits (1) represent approximately 95% of total deposits DEPOSIT GROWTH DRIVEN BY CORE DEPOSITS (1) Core deposits are defined as total deposits less brokered deposits. $ in billions Note: These historical results pertain to QCR Holdings and do not include results from SFC Bank, which was m
Slide 17: Strong Revenue Growth and Attractive Mix
17 Predictable and diversified fee income streams complement net interest income STRONG REVENUE GROWTH AND ATTRACTIVE MIX (1) Excludes securities gains, bargain purchase gains, gains on sales of branches and loss on sale of OREO. $ in millions (1) Key Components of Fee Income: • Wealth Management ($
Slide 18: Asset Quality Continues to Improve
18 a relationship driven organization. ® 48.1% 46.8% 5.0% 0.1% Other Real Estate Owned & Repossessed Assets - 48.1% Nonaccrual Loans/Leases - 46.8% Troubled Debt Restructures - Accruing - 5.0% Accruing Loans/Leases 90+ Days PD - <1% ASSET QUALITY CONTINUES TO IMPROVE $26.8 million Classified Loans &
Slide 19: Consistent Growth Has Driven Improved Profitability
19 CONSISTENT GROWTH HAS DRIVEN IMPROVED PROFITABILITY (1) Core net income to common shareholders – see appendix slide 40 for reconciliation of GAAP net income to core net income. (2) Core earnings per diluted share – see appendix slide 40 for reconciliation of GAAP EPS to core EPS. $9.1 $11.8 $13.8
Slide 20: Appendix
OCR HOLDINGS, INC. Appendix
Slide 21: Executive Management Team
21 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 MONTE C. M c NEW President, SFC Bank 12 Years in Banking RONALD M. NAGEL Chief Executive Officer Community State B
Slide 22: Group Operations Team
22 a relationship driven organization. ® GROUP OPERATIONS TEAM INTERNAL AUDIT Tim Harding LOAN OPERATIONS Pam Goodwin RETAIL Kathy Nichols RISK MANAGEMENT Shawna Graham ACCOUNTING & TREASURY Elizabeth Grabin John Oakes BUSINESS TRANSFORMATION SERVICES Jill Lechtenberg COMPLIANCE Tonia Taylor CUSTOME
Slide 23: Quad City Bank & Trust
23 QUAD CITY BANK & TRUST John H. Anderson, President & CEO Assets: $1.56 Billion (as of 6 /30/18 ) 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 24: Deposit Market Share - Quad City Bank & Trust
24 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 %
Slide 25: Cedar Rapids Bank & Trust
25 CEDAR RAPIDS BANK & TRUST Larry J. Helling , President & CEO Assets: $1.35 Billion* (as of 6 /30/18 ) Population: 270,363 Market Deposits: $5.8 Billion 2018 Best of the Corridor in Bank segment by Corridor Business Journal Ranked 2 nd with 15.10% market share and over $878 million in deposits in
Slide 26: Deposit Market Share - Cedar Rapids Bank & Trust
26 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 27: Rockford Bank & Trust
27 ROCKFORD BANK & TRUST Thomas D. Budd, President & CEO Assets: $484 Million (as of 6 /30/18 ) 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 Sy
Slide 28: Deposit Market Share - Rockford Bank & Trust
28 a relationship driven organization. ® DEPOSIT MARKET SHARE – Rockford Bank & Trust Institution Name Offices in MSA Deposits * Market Share 1. Midland States Bank** 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
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 Communicatio
Slide 30: Deposit Market Share - Community Bank & Trust
30 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 31: Community State Bank
31 COMMUNITY STATE BANK Ronald M. Nagel, CEO Kurt A. Gibson, President Assets: $712 Million (as of 6 /30/18 ) Population: 651,599 Des Moines/West Des Moines MSA Market Deposits: $17.6 Billion Ranked 8 th with 3.16% market share and over $554.8 Million in deposits in Des Moines – West Des Moines MSA
Slide 32: Deposit Market Share - Community State Bank
32 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 33: SFC Bank
33 SFC BANK Robert C. Fulp, CEO Monte C. McNew , President Assets: $573 Million (as of 6/ 30/18 ) Population: 462,369 Springfield, MO - MSA Market Deposits: $9.8 Billion Ranked 8 th with 4.32% market share and over $422.9 Million in deposits in Springfield MSA Major Employers ( Springfield) CoxHealt
Slide 34: Deposit Market Share - SFC Bank
34 a relationship driven organization. ® DEPOSIT MARKET SHARE – SFC Bank Institution Name Offices in MSA Deposits * Market Share 1. Great Southern Bancorp 20 $1,310.9 13.40 % 2. Commerce Bancshares 11 1,181.6 12.07 % 3. Central Bancompany 21 1,126.9 11.52 % 4. Bank of America 5 706.0 7.21 % 5. Guara
Slide 35: m2 Lease Funds, LLC Overview
35 a relationship driven organization. ® Lease Asset Generation m2 LEASE FUNDS, LLC OVERVIEW Source: Company documents. * Leases Outstanding includes Equipment Finance Agreements (EFAs). • National equipment leasing platform • Focus includes Computer systems; photocopy systems; specialized road main
Slide 36: Historical Income Summary
36 a relationship driven organization. ® HISTORICAL INCOME SUMMARY (1) Non - interest expense includes several one - time expenses - most notably, $5.4 million and $2.4 million, and $0.7 million of acqui sition and post - acquisition compensation, transition and integration costs for 2017 and 2016,a
Slide 37: Historical Balance Sheet Summary
37 a relationship driven organization. ® HISTORICAL BALANCE SHEET SUMMARY ($ in millions) Years Ended December 31, Six Months Ended June 30, 2012 2013 2014 2015 2016 2017 2017 2018 Total assets $ 2,093.7 $ 2,395.0 $ 2,525.0 $ 2,593.2 $ 3,301.9 $ 3,982.7 $ 3,457.2 $ 4,106.9 Total loans/leases 1,287.4
Slide 38: Historical Key Performance Ratios
38 a relationship driven organization. ® HISTORICAL KEY PERFORMANCE RATIOS (1) Numerator is net income attributable to QCR Holdings. (2) See GAAP to Non - GAAP reconciliations. No adjustments to GAAP net income were made in 2012 and 2013. Core ROAA reflect GAAP numbe rs for those years. (3) Numerato
Slide 39: GAAP to Non-GAAP Reconciliations
39 a relationship driven organization. ® GAAP TO NON - GAAP RECONCILIATIONS (1) No adjustments to GAAP net income were made in 2012 and 2013. Core net income, EPS and ROAA reflect GAAP numbers for those ye ars . *Nonrecurring items (after - tax) are calculated using an estimated effective tax rate o
Slide 40: GAAP to Non-GAAP Reconciliations (Cont.)
40 a relationship driven organization. ® GAAP TO NON - GAAP RECONCILIATIONS (CONT.) ($ in millions) For the Years Ended December 31, For the Six Months Ended June 30, NIM (TEY) 2012 2013 2014 2015 2016 2017 2017 2018 Net interest income (GAAP) $ 57.6 $ 64.1 $ 69.1 $ 76.3 $ 94.5 $ 116.1 $ 55.7 $ 64.5
Slide 41: GAAP to Non-GAAP Reconciliations (Cont.)
41 a relationship driven organization. ® GAAP TO NON - GAAP RECONCILIATIONS (CONT.) As of and for the Year ended December 31, As of and for the Six Months ended June 30, ($ in millions, except per share data) 2012 2013 2014 2015 2016 2017 2017 2018 Tangible Common Equity Total equity $ 140.4 $ 147.6
Slide 42: www.qcrh.com
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