Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (May 2021)
39 slides from Qcr's investor presentation, May 3, 2021
Slide 1: Investor Presentation Updated April 30, 2021
Investor Presentation U pda t e d Ap r i l 30 , 2021
Slide 2: Forward-looking statements and non-GAAP financial measures
A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward - looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and inter
Slide 3: QCR Holdings, Inc. Overview
• Local charters provide a competitive advantage • Strong, centralized risk management function • Efficient centralized group operations • Strong credit and asset quality • Consistent adjusted net income growth • High - touch service approach • Serving attractive Midwest markets • Significant expans
Slide 4: QCRH operates four locally managed and governed charters
QCRH operates four locally managed and governed charters, supported by a centralized operations team. Lines of Business: ▪ Full - service commercial and consumer banking ▪ Correspondent banking ▪ Commercial lease financing ▪ Trust and wealth management services Assets: $5.6 Billion Loans: $4.4 Billi
Slide 5: Leadership
T od d A . G i pp l e President, COO and CFO ▪ O v e r 3 0 y ea rs o f c o mm e r c i a l ban k in g an d f inan c i al a cc oun t i n g e x pe r ien c e ▪ J oine d Q C R H olding s i n 2000 ▪ A ppoin t e d C hie f F inan c i a l O f f i c e r i n 2000 ▪ A ppoin t e d C hie f O pe r a t in g O f f i
Slide 6: Our Mission, Vision and Values
WHO WE ARE Our Mission, Vision and Values Our Mission We make financial dreams a reality. Our Vision Exceptional people providing extraordinary performance for our clients, shareholders and communities. Our Values PASSION | We care. A CH I EVEME N T | W e e x pe ct t o w i n . ACCOUNTABILITY | We dr
Slide 7: The Value of Separate Charters
The Value of Separate Charters Source: FDIC deposit market share data a provided by S&P Global (as of 6/30/19). Managed and governed by local veteran bankers and boards with strong community ties and expertise • High touch service delivered by knowledgeable professionals • Strong community involveme
Slide 8: Our History of Growth
1993 QCR Holdings F o unded $14 million IPO 1994 Quad City Bank & Trust (De Novo) 2001 Cedar Rapids Bank & Trust (De Novo) 2005 Rockford Bank & Trust (De Novo) & Quad City Bank & Trust acquires m2 Lease Funds, LLC 2013 C o mm uni t y National Bank acquisition 2016 C o mm uni t y State Bank acquisiti
Slide 9: Our Entities at a Glance
G R O W T H Our Entities at a Glance Entity States/ R e g i on # Locations Deposits Market Share I o w a /I lli no i s Quad Cities 5 $1.8B #1 Iowa Cedar Rapids 5 $1.2B #1 Iowa Cedar Valley 3 $0.2B #7 Iowa D e s M o i ne s / A n k eny 9 $0.9B #7 Missouri S p r i ng f i e l d 1 $0.6B #7 9
Slide 10: Strong Market Share in Attractive MSAs
Strong Market Share in Attractive MSAs * MSAs include Davenport - Moline - Rock Island, IA - IL, Cedar Rapids, IA, Rockford - IL, Waterloo - Cedar Falls - IA, Des Moines/West Des Moines - IA, and Springfield, MO. All banks reflect Pro Forma Data from acquisitions. ** Pro Forma based on Rockford Bank
Slide 11: Unique and Diversified Products and Services
Unique and Diversified Products and Services • Fiduciary services • Investment management services • Financial planning • Brokerage services • 3/31/21 AUM: $4.8B • Competitive deposit products • Safekeeping and cash management services • 188 correspondent banking relationships • Bank stock loans • C
Slide 12: A Broad Scope of Wealth Management Services
12 A Broad Scope of Wealth Management Services S C O PE The wealth management business model and the scope of our services is unique at QCRH. Wealth Management & Trust Services • Investment management • F i nan c i a l p l ann i ng • Trust services • Fiduciary services • Tax services Investment Cent
Slide 13: Diverse and Growing Client Relationships
13 Diverse and Growing Client Relationships G R O W T H $8 . 2 $9 . 9 $11 . 3 $12 . 0 $12 . 6 $15.0 $0 . 0 $2 . 0 $4 . 0 $6 . 0 $8 . 0 $10 . 0 $12 . 0 $14 . 0 $16 . 0 2016 2017 2018 2019 2020 3/31/2021 (1) R e v e n u e (1) 2021 data annualized. All data excludes Bates and RB&T. Revenue ($MM) 1 .8 2
Slide 14: Environmental, Social and Governance
COMMITMENT Environmental, Social and Governance Environmental Responsible use of our resources with a focus on sustainability Social Commitment to support the communities in which we live and work Governance Integrity in our business practices Our Long - Term Commitment With numerous programs and ac
Slide 15: Our Strategy for Long-Term Success
Our Strategy for Long - Term Success We’ve set a simple and focused strategy for our future. 9 - 6 - 5 is our plan to continue to grow earnings and drive attractive long - term returns for our shareholders. 9 – Grow loans by 9% per year, funded with core deposits 6 – Grow fee income no less than 6%
Slide 16: Financial Highlights
F i nanc i a l Hi gh li gh t s 1 6
Slide 17: Asset Growth
ASSET GROWTH 17 $2 . 2 $2 . 9 $3 . 5 $4 . 4 $4 . 9 $5 . 7 $5 . 6 67 . 6% 71 . 9% 73 . 8% 75 . 0% 75 . 2% 74 . 8% 77 . 3% 2 0 15 2 0 16 2 0 17 T o t a l A s se t s 2018 2019 2020 3/31/2021 Total Loans & Leases/Total Assets A Consistent Track Record of Asset Growth Asset growth has been driven by a co
Slide 18: Deposit Growth Driven by Core Deposits
34% 31% 25% 20% 20% 25% 27% 48% 52% 60% 57% 62% 65% 63% 15% 15% 13% 16% 16% 10% 10% $2 . 4 2% 7% 2% $1 . 6 3% $2 . 9 2% $3 . 5 $3 . 9 $4 . 6 $4 . 6 20 1 5 20 1 6 20 1 7 Noninterest - bearing Deposits 20 1 8 20 1 9 20 2 0 3/31/2021 Interest - bearing Deposits T i m e D e p o s i t s B r o k e r e d D
Slide 19: Loan Growth Driven by Commercial Lending
$0.5 $0.7 $1.0 $1 . 3 $1 . 5 $1 . 7 $1 . 8 $0.6 $0.9 $1 . 1 $1 . 6 $1 . 8 $2 . 1 $2 . 2 $0.2 $0.2 $0.2 $0 . 1 $0 . 1 $0 . 1 $0 . 1 $0 . 1 $0 . 2 $0 . 2 $0 . 2 $0 . 3 $0 . 1 $0.1 $0.2 $0.1 $0.2 $0 . 1 $0 . 1 $0 . 1 $1. 5 $2. 1 $2. 6 $3. 3 $3. 7 $4. 3 $4. 4 $0.1 20 1 5 2016 Commercial & Industrial 201
Slide 20: Strong Pre-Provision, Pre-Tax Earnings
20 Strong Pre - Provision, Pre - Tax Earnings EARNINGS $42 $46 $64 $78 $132 $116 $40 $29 $20 $0 $60 $80 $100 $120 $140 2015 2016 2020 3/31/2021 2017 2018 2019 Pre - Provision, Pre - Tax Earnings (in Millions) Rockford Bank & Trust data excluded. 2021 data annualized.
Slide 21: Strong Capital Position
21 CAPITAL POSITION Strong Capital Position 8.56% 8.14% 8.01% 8.13% 9.25% 9.40% 9.67% 13 . 91% 11 . 56% 11 . 15% 12 . 50% 13 . 33% 14 . 95% 15 . 22% 4.00% 6.00% 8.00% 10 . 00% 12 . 00% 14 . 00% 16 . 00% 2015 2016 201 7 2018 2019 2020 3/31/2021 QCRH is well - positioned for long - term success for se
Slide 22: Asset Quality
ASSET QUALITY 22 98. 4% 1. 6% Nonaccrual Loans/Leases Other Real E s t a t e Ow ned & Repossessed Assets Asset Quality Management remains focused on maintaining excellent asset quality and resolving problem assets. $14.1 million Classified Loans & NPAs / Assets ($MM) Nonperforming Assets Composition
Slide 23: Strong Credit Culture Supported by High Levels of Reserves
223% 145% 184% 215% 404% 575% 590% 193% 180 % 183% 214% 194% 347% 380% 20 1 5 20 1 6 20 1 7 20 1 8 20 1 9 2020 3/31/2021 Q C RH P r o x y P ee r s 1 . 45% 1 . 28% 1 . 16% 1 . 98% 1 . 88% 1 . 20% 1 . 08% 1 . 04 % 1 . 07% 1.03% 0.98% 0 . 95% 1 . 57% 1.53% 2 0 15 2 0 16 2 0 2 0 3 / 3 1 / 2 0 2 1 2017 Q
Slide 24: Strong Revenue Growth and Attractive Mix
75% 75% 79% 77% 66% 59% 64% 25% 25% 21% 23% 34% 41% 36% $87 $110 $130 $167 $234 2015 2016 2020 3/31/2021 2017 2018 2019 Net Interest Income Noninterest Income Strong Revenue Growth and Attractive Mix Predictable and diversified fee income streams complement net interest income $ in millions $281 $26
Slide 25: Consistent Improvement in Shareholder Returns
$21 $29 $36 $46 $59 $63 $74 $2.66 $2.31 $1.99 $3.08 $3.66 $3.96 $4.64 2015 2016 2017 2018 2019 2020 3 / 31 / 202 1 ( 1 ) Consistent Improvement in Shareholder Returns 0.82% 1.03% 1.03% 1.06% 1.15% 1.08% 1.27% 2015 2016 (1) 2021 data annualized. 20 1 7 20 1 8 20 1 9 20 2 0 3 / 31 / 2 0 2 1 ( 1 ) Retu
Slide 26: COVID Exposure
C O V I D - 1 9 E xposu r e Q 1 2021 26
Slide 27: PPP & LRP Participation
PP P & L R P P a r t i c i pa t i on 27
Slide 28: Client Participation in the Paycheck Protection Program
QCRH originated 2,394 PPP loans, totaling $451MM to date. • As of March 31, 2021, 1,102 of these loans, totaling $207MM, were forgiven. • In 2021, QCRH originated 696 PPP loans, totaling $93MM. • New PPP clients have resulted in more than $80MM of additional new loan and deposit business to date. Cl
Slide 29: QCRH Loan Relief Program
The QCRH LRP offered immediate payment relief to consumer and small business loan clients. • As of March 31, 2021, there were $7MM, or 0.16% of total loans and leases still on deferral. • This is down from $28MM, or 0.66% of total loans and leases on deferral, as of Dec. 31, 2020. Loan Relief Progra
Slide 30: Bank Loan Relief Program by Industry
LOAN RELIEF Bank Loan Relief Program (LRP) by Industry A breakdown of the industries for deferrals: 30 Industry Deferrals as of Dec. 31, 2020 Deferrals as of March 31, 2021 T ot a l A m o un t (in millions) % of Total Lo a ns /L e a s es T ot a l A m o un t (in millions) % of Total Lo a ns /L e a s
Slide 31: Trends in Criticized and Classified Loan Totals
Trends in Criticized and Classified Loan Totals ASSET QUALITY 31 Category T o t a l A m o un t ( in m illi o n s ) 3/31/21 12/31/20 9/30/20 6/30/20 3/31/20 S pe c ia l M en t io n ( R a t in g 6) $53 $72 $80 $104 $35 S ub s t anda rd ( R a t in g 7) $85 $66 $70 $40 $36 D oub t f u l ( R a t in g 8)
Slide 32: Industry Concentration Disclosures
I ndu s t r y C oncen t r a t i on Disclosures 3 2
Slide 33: Primary Industry Concentration Overview
P R I M A R Y The following industries were deemed higher risk in our commercial loan portfolio due to the COVID - 19 pandemic. As of March 31, 2021: Industry Amount % of Total Loans Hotels $80MM 1.83% Restaurants $36MM 0.82% Arts, Entertainment and Recreation $27MM 0.62% Aviation $0MM 0.00% Energy
Slide 34: Secondary Industry Concentration: Retail
SE C O ND A R Y Secondary Industry Concentration | Retail As of March 31, 2021, QCRH retail exposure was $214MM, or 4.91% of total loans. Overview in Our Markets • Restrictions on gatherings eased or lifted in all markets. • All retail segments in our markets continue to see improvement. • Sales at
Slide 35: Appendix
Appendix 3 5
Slide 36: Quad City Bank & Trust
QUAD CITY BANK & TRUST John H. Anderson, CEO Laura “Divot” Ekizian, President Assets: $2.1 Billion 1 (as of 3/31/21) Population: 382,268 Market Deposits: $8.2 Billion (1) Includes $241.5 million of the assets of m2 Equipment Finance, as this entity is wholly - owned and consolidated with the bank. S
Slide 37: Community Bank & Trust deposit market share
Source: FDIC deposit market share data as provided by S&P Global. Deposit data is as of 9/30/20. * Dollar s in m illion s . COMMUNITY BANK & TRUST Stacey J. Bentley, President & CEO A sse t s : $9 1 M illi o n ( a s o f 3 / 31 / 21 ) Population: 169,565 Waterloo/Cedar Falls MSA Market Deposits: $1.7
Slide 38: SFC Bank deposit market share
SFC BANK Monte C. McNew, President & CEO Assets: $819 Million (as of 3/31/21) Population: 467,912 Springfield, MO - MSA Market Deposits: $9.9 Billion Source: FDIC deposit market share data as provided by S&P Global. Deposit data is as of 9/30/20. * Dollar s in m illions. Institution Name Offices in
Slide 39: Contact details
3551 Seventh Street Moline, IL 61265 ww w .Q CRH . c o m © Copyright 2021 QCR Holdings, Inc. All Rights Reserved