Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (March 2022)
32 slides from Qcr's investor presentation, Mar 2, 2022
Slide 1: Investor Presentation Updated February 25, 2022
I n v e s t o r P r e s e n t a t i o n U pd a t e d F e b r u a r y 25 , 2022
Slide 2: Forward-Looking Statements
F O R W A R D - L OO K I N G S T A T E M E N T S This document (including information incorporated by reference) contains, and future oral and written statements of the Company and its management may contain, forward - looking statements, within the meaning of such term in the Private Securities Lit
Slide 3: Why QCRH?
W h y Q CRH ? x O u r b us i n e s s m o d e l i s b e tt e r . x O u r p er f o rman ce i s b e tt e r . x O u r f u t u r e i s b r i g h t . 3 Business Model Performance Outlook L o c a l c h a r t e r a u t o n o m y a tt ra c ts b e s t b a n k e r s a n d c l i e n ts H i g h - p e r fo r m i
Slide 4: How We're Different
QCR Holdings, Inc. 4 HOW WE’RE DIFFERENT
Slide 5: QCR Holdings
QCR Holdings (NASDAQ: QCRH) | Founded in 1993 A b u s i n e s s m o d e l t h a t w o r k s . x L o c a l c h a r t e r a u t o n o m y w i t h s u p po r t fr om c e n t r a l i ze d g r o up operations x A g i l e a n d r e s p o n s i v e t o c l i en t nee d s x A tt r a c t s t h e b e s t b a
Slide 6: Exceptional Growth in Key Financial Metrics
6 E x c ep t i o n a l G r o w t h i n K e y F i n a n c ia l M e t r i c s In the last five years, our company has doubled in size and delivered consistent, steady growth - outperforming many of our peers. C A G R = C o m p o u n d A nn u a l i z e d G r o w t h R a t e Financial Metric 12/31/2016
Slide 7: Our Strategy for Long-Term Success
O u r S t ra t e g y f o r L o n g - T e r m S u cc e s s W e ’ v e s e t a s i m p l e a nd f o c u s e d s t r a t e g y f o r o u r f u t u r e . 9 - 6 - 5 is our plan to continue to grow earnings and drive attractive long - term r e t u r n s f o r o u r s h a r eh o l d e r s . 9 – G r o w l o
Slide 8: How is QCRH different? Our niches drive outstanding results
How is QCRH different? Our niches drive outstanding results. • F i d u c ia r y s e r v ic e s • Investment m a n ag e m e n t services • F i n an c i a l p l a nn i ng • B r o k e r a g e s e r v i c es • 12 / 31 / 21 A U M : $5.4B • Competitive d e p o s i t p r o d u c t s w i t h n e a r l y $2
Slide 9: A Complex and Profitable Business: Specialty Finance Group
A C o m p l e x a n d P r o f i t a b l e B u s i n e ss : S p e c ia l t y F i n a n c e G r o u p 9 With decades of experience, our team has navigated the c o m pl e x i ty o f t h e m u n i c i p a l a n d t a x c r e d i t f i n a n c i n g s p a c e – c r e a t i n g a s us t a i n a ble a n d
Slide 10: Specialty Finance Group: A Complex and Profitable Business
$0 . 6 $0 . 8 $9.1 $26 . 5 $67.9 $60 . 5 $0 $10 $20 $30 $40 $50 $60 $70 $80 2016 2017 2018 2019 2020 2021 F e e I n c o me F e e I nc o m e G r o w t h ( $ M M ) $491.8 $657.3 $863.3 $1 ,157 . 7 $1 ,632 . 3 $2 ,182 . 6 $0 $500 $1 , 000 $1 , 500 $2 , 000 $2 , 500 2016 2017 2018 2019 2020 2021 L o an
Slide 11: SFG: Providing Municipal and Tax Credit Financing Solutions
SFG: Providing Municipal and Tax Credit Financing Solutions $4 . 1 $18 . 9 $79 . 9 $229.4 $564.5 $1,097.1 $122.8 $205.7 $231.6 $274.5 $280.3 $304.0 $6.0 $372.0 $394.6 $395.0 $472.6 $469.4 $177.7 $143.5 $183.2 $301.7 $320.7 $335.8 $0 $500 $1 , 000 $1 , 500 $2 , 000 $2 , 500 2016 2017 2018 2019 2020 H
Slide 12: A Broad Scope of Wealth Management Services
A Broad Scope of Wealth Management Services The ultimate relationship business, our wealth management structure and extensive scope of services cater to our clients’ needs . W e a l t h M a n a g e m e n t & T ru s t S e r v i c e s • I n v e s t m e n t m a n a g e m e n t • F in a n c i a l p l a
Slide 13: Diverse and Growing Client Relationships
1 3 Diverse and Growing Client Relationships $8 . 1 $9 . 9 $11 . 4 $12 . 0 $12 . 6 $15 . 3 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 2016 2017 2018 2019 2020 2021 Revenue * A l l d at a ex c l u d e s B at e s a n d R B & T . R ev e n u e ( $ MM ) * $1 . 8 $2 . 5 $2 . 5 $3 . 1 $3 . 4 $4 . 2 $0 . 6 $0 . 9 $
Slide 14: Correspondent Banking
C o r r e s p o n d e n t B a n k i ng Our strong Correspondent Banking business provides significant l i q u i d i t y t o f u n d g r o w t h . $325.9 $157.7 $277.4 $336.0 $187.2 $200.5 $182.0 $123.9 $322.9 $425.9 $219.9 $270.8 $255.3 $294.0 $631.9 $1,333.7 $1,261.2 $596 . 7 $643 . 0 $599 . 9 $1 ,
Slide 15: Our Markets
QCR Holdings, Inc. OUR MARKETS Vibrant Commercial and Industrial Activity 15
Slide 16: We do business in vibrant markets
We do business in vibrant markets. R e l a ti o n s h i p s m a tt e r a n d d i f f e r e n t i a t e u s f r om b i g b a n k s R o b u s t c omm e r ci a l , i n d u st r i a l a n d t e c hn o l o g y a c t i v it y ( n o t t o u r i s m ) Strong demographics & highly educated w o r k f o r c e
Slide 17: Strong Market Share in Attractive MSAs
1 7 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. D e p o s i t M a r ke t S h a
Slide 18: Our Charters at a Glance
O u r C h a r t e r s a t a G l a n c e Entity S t a t e s / R e g i o n N u m b e r of Locations Deposits M a r k e t Share I o w a / I ll i n o i s Q u a d C i t i e s 5 $1.8B #1 Iowa C e d a r R a p i d s / C e d a r V a ll e y 8 $1.5B #1 Iowa D e s M o i n e s / Ankeny 9 $1.0B #7 Missouri S p r
Slide 19: Acquisition of Guaranty Federal Bancshares: Financially Compelling Pro Forma Impact
1 9 • F i r s t F u l l Y ea r E P S A cc r e t i o n ( 2023 ) : $0 . 8 1 / 13 . 1% • IRR: 20.4% • T B V D i l u t i o n : 5 . 2 % • T B V E a r n b a c k : 2 . 7 5 y ea r s ( C r o ss o v e r) 2 . 7 1 y ea r s ( Si m p l e ) • T C E / T A : 9 . 3 % • C E T 1 R a t i o : 10 . 1% • T o t a l R B C R
Slide 20: Demonstrated Strong Results in Prior M&A: Springfield First Community Bank
Demonstrated Strong Results in Prior M&A Springfield First Community Bank in Springfield MSA S F C N e t I n c o m e C o m p a r i s o n ( $ M ) $462.2 $545.1 $429.1 $666.8 $752.0 $718.9 $880.1 $650.2 $605.9 $0 $100 $200 $300 $400 $500 $600 $700 $800 $900 $1 , 000 T o t al L o a n s T o t a l A ss e
Slide 21: Demonstrated Strong Results in Prior M&A: Community State Bank
Demonstrated Strong Results in Prior M&A Community State Bank in Ankeny/Des Moines MSA C S B N e t I n c o m e C o m p a r i s o n ( $ M ) C S B L o a ns / A ss e t s / D e p o s i t s C o m p a r i s o n ( $ M ) $444.6 $594 . 0 $481 . 3 $607.3 $782 . 1 $673 . 4 $834 . 5 $1 , 140. 9 $994.0 $0 $200 $
Slide 22: Financial Highlights
2 2 QCR Holdings, Inc. FINANCIAL HIGHLIGHTS
Slide 23: Total Consolidated Assets and Asset Distribution by Charter
2 3 (1) Rockford Bank & Trust assets were removed from this data. (2) Includes $266.6 million of the assets of m2 Equipment Finance, as this entity is wholly - owned by and consolidated with Quad City Bank and Trust. R e c e n t A c q u i s i ti o n s ( A sse t s a t a c q u i s i ti o n d a t e ( $
Slide 24: Loan Growth Driven by Commercial Lending
2 4 $0.5 $0.7 $1.0 $1.3 $1.5 $1.7 $1.6 $0.6 $0.9 $1.1 $1 . 6 $1 . 8 $2 . 1 $2 . 6 $0 . 2 $0.2 $0.2 $0 . 1 $0 . 1 $0 . 1 $0 . 1 $0 . 1 $0.2 $0 . 2 $0 . 2 $0 . 2 $0 . 3 $0 . 1 $0.1 $0.2 $0.1 $0 . 1 $0 . 1 $0 . 1 $1. 5 $2. 1 $2. 6 $3. 3 $3. 7 $4. 3 $4. 7 $0.1 2015 2016 C o m m e rci al & I n d u s t ri
Slide 25: Deposit Growth Driven by Core Deposits
2 5 34% 31% 25% 20% 20% 25% 26% 48% 52% 60% 57% 62% 65% 65% 15% 15% 13% 16% 16% 10% 9% 2% 2% 7% 2% $1.6 3% $2 . 4 $2 . 9 $3 . 5 $3 . 9 $4 . 6 $4 . 9 2015 2016 2017 N o n i n t e r e s t - b e a r i n g D e p o s i t s 2018 2019 2020 2021 I n t e r es t - b e a r i n g D e p o s i t s T i me D e p o
Slide 26: Interest Rate Sensitivity
2 6 I n t e r e s t R a t e S e n s i t i v i t y $0 $500,000,000 $1,000,000,000 $1,500,000,000 $2,000,000,000 $2 , 500 , 000 , 000 R a t e S e n s i t i v e Assets R a t e S e n s i t i v e Liabilities $2.1B $1.3B A ss e t S e n s i t i v e B a l a n c e Sh eet ( a s o f 12/31/ 21) • F o r eve ry 2
Slide 27: Strong Capital Position
2 7 S t r o n g C a p i t a l P o s i t i on 8.55% 8.04% 8.01% 7.78% 9.25% 9.40% 9.87% 13.11% 11.56% 11.15% 10.69% 13.33% 14.95% 14.92% 4.00% 6.00% 8.00% 10 . 00 % 12 . 00 % 14 . 00 % 16 . 00 % Q C R H i s w e ll - p o s i t i o n e d f o r l o n g - t e r m su cc e ss: • S i g n if i c a n tl y im
Slide 28: Asset Quality
$28 . 0 $49 . 0 $43 . 7 $28 . 6 $33 . 6 $53 . 2 0 . 74 % 0 . 82 % 0 .8 … 0 . 56 % 0 . 27 % 0 . 25 % 0 . 05 % 1 2 3 4 5 6 7 2 8 100% Nonaccrual L o a n s / L e a se s 0 % - O t h e r R e a l E s t a t e O w n e d & R e p o ss e ss e d A ss e t s $2 . 8 m i ll i o n 100 . 0 % A ss e t Q ua l i t y Cla
Slide 29: Strong Credit Culture Supported by High Levels of Reserves
2 9 223% 145 % 184% 404% 605% 193% 180% 183% 215% 214% 194% 347% 724% 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 2 0 20 2 0 21 Q C R H P r o x y P e e r s 1 . 45 % 1 . 28 % 1 . 16 % 0 . 98 % 1 . 98 % 1 . 68 % 1 . 20 % 1 . 08 % 1 . 07 % 1.04% 1 . 03 % 0 . 95 % 1 . 53 % 1 . 46 % 2 0 15 2 0 16 2 0 17 2 0 18 2
Slide 30: Strong Revenue Growth and Attractive Mix
3 0 75% 75% 79% 77% 66% 59% 64% 25% 25% 21% 23% 34% 41% 36% $8 7 $11 0 $13 0 $16 7 $23 4 $27 9 2015 2016 2017 2018 2019 2020 2021 N e t I n te re s t I n c o m e N o n i n t er e s t I n c o m e (1) All data excludes Rockford Bank & Trust and 2019 excludes $12.3 million gain on sale from the RB&T tr
Slide 31: Consistent Improvement in Shareholder Returns
3 1 $21 $29 $36 $46 $59 $63 $2.31 $1.99 $2.66 $3.08 $3.66 $3.96 $6.27 2 0 15 2 0 16 2 0 17 2 0 18 2 0 19 2 0 20 2 0 21 Consistent Improvement in Shareholder Returns R et u r n o n A v er a g e A ss et s E f f i c i e n c y R a t io ( % ) A d j . N e t I n c o m e $ i n m il l i o n s Ad j . E P S $1
Slide 32: 3551 Seventh Street Moline, IL 61265 www.QCRH.com © Copyright 2021 QCR Holdings, Inc. All
3551 Seventh Street Moline, IL 61265 www.QCRH.com © Copyright 2021 QCR Holdings, Inc. All Rights Reserved