Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (March 2012)
33 slides from Qcr's investor presentation, Mar 27, 2012
Slide 1: QCR Holdings, Inc. 2012 Financial Presentation
QCR HOLDINGS, INC. 2012 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 Secu 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, resul
Slide 3: Forward-Looking Statements - Continued
FORWARD-LOOKING STATEMENTS - Continued 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 mer
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 adj
Slide 5: Table of Contents
oe Ho! IGS, INC. artelationship driven organization” Table of Contents Wh WG AL -E.........seseeresseersssenece 6 Our Strategy........cccccccseeeeeeeeeees 9 Financials trccmesctnwarersnnteuinee 1 Key Differentiators ...............008 19 AD PONIXs rssesevecessrerercseveceseaess 26
Slide 6: Corporate Overview
Corporate Overview Founded in 1993 Headquartered in Moline, IL SYMBOL ~ QCRH $ 1.97 Billion in assets $ 1.21 Billion in deposits 10 Facilities ‘Quad City Bank & Trust (5) Rockford Bank & Trust (2) Cedar Rapids Bank & Trust (2) | | $ 1.20 Billion in loans m2 Lease Funds LLC (1) Shares Outstanding: 4.
Slide 7: History of QCR Holdings, Inc.
a relationship drive History of QCR Holdings, Inc. 1993 Founded by Mike Bauer and Doug Hultquist 1994 Quad City Bank & Trust* — Currently $1.11 Billion in Assets 2001 Cedar Rapids Bank & Trust* — Currently $560 Million in Assets 2005 Rockford Bank & Trust* — Currently $294 Million in Assets 2005 Qua
Slide 8: Strategic Advantages: distinct operating charters
Strategic Advantages 3 distinct (yet similar) operating charters able to customize solutions by market Managed by local veteran bankers, governed by local Board of Directors, local decisions, local solutions, enhanced market specific knowledge 3 charters supported by QCRH Group Operations team that
Slide 9: Strategy: growth in earnings and EPS over assets
Prioritization of growth in earnings and earnings per share (EPS), over growth in assets Preservation of capital and increasing tangible common equity (TCE) to allow for redemption of SBLF Capital without the need for a dilutive common equity raise Continue to maintain adequate liquidity while bette
Slide 10: Top MSAs / Iowa and Illinois
Top 25 MSAs / lowa and Illinois fuse Deposits ($m) otinst Wot Branches Total Population popu Chicago ote Naperie LAN-Wt seers 255 327 9739919 185% 385,706, SaintLous, MOA s71.7004 wae 85 251.619 198 $57,102 (mans: Cound Bus, NEA 3217255 % 26 958.099, 4a 3591328, Des Mines 1A 16.1604 5 2s 574520 ot s
Slide 11: Summary of Financial Results 2006-2011
Summary of Financial Results 2006-2011 Netintorest income Nonintorest income Non-intrest expense Pretax pe-provision Provision expense Income before taxes Income taxes ‘ncome from continuing operations {income (loss) fom discontinued operations Net income Less: net income attributable to non control
Slide 12: Proxy Peer Comparisons
Proxy Peer Comparisons QCR Holdings, Inc. aceT* CRBT RBT Average Median Assets $1.1 Billion $560 Million $294 Million $2.0 Billion Total Capital 13.0% 14.4% 15.3% 14.9% 14.6% TCE NIA NIA NIA 7.7% 7.8% Texas Ratio 20.2% 16.6% 27.7% 32.2% 23.7% NPAsiAssets 1.8% 1.8% 3.5% 3.0% 21% ROAA 0.8% 0.9% 0.2% 1
Slide 13: Strategic Issues Impacting Stock Price
oe Ho! IGS, INC. a relationship driven 0 Strategic Issues Impacting Stock Price Low Tangible Common Equity Ratio — More Common Shares? Lack of liquidity in our stock SBLF Capital of $40.1 Million — How Will It Be Redeemed? Asset Quality Questions — Have NPA’s Peaked? “Normalized” Earnings — When and
Slide 14: QCR Holdings, Inc. Capital Structure
R HOLDINGS, INC. artelationship driven organization” QCR Holdings, Inc. Capital Structure December 31, 2011 DIVIDENDS / INTEREST Preferred F* — $40.1Mat5.00% Preferred E ** $25.0 at7.00% Trust Il $12.4M floating at 3.22% (3ML + 2.85%) Trust Ill $8.2M floating at 3.22% (3ML + 2.85%) Trust IV $5.2M fl
Slide 15: Total Consolidated Assets
wee Ho! IGS, INC. atelationship driven organizatior Total Consolidated Assets IN MILLIONS OF DOLLARS CAGR 1994-2011 24.11% CAGR iee42007 32.26% car zg z0t1 743% $1,750 $1,500 $1,250 $1,000 $750 $500 $250 Pang Dec03 Deco 0 ec05 Dec-10 Dees iad Dec 98
Slide 16: Total Consolidated Deposits
ete arelationship driven organization’ Total Consolidated Deposits IN MILLIONS OF DOLLARS $1,400 $1,200 $1,000 $800 $600 $400 $200 Dec94 Dec 95 Dec-96 Dec-97 Dec 98 Dec 99 Dec00 Deco3 Deco4 Dec 0s Dec06 Dec-09 Dee-10 Dect Deco Dec-0: Dec-0i Dec-0f
Slide 17: A Closer Look: Total Consolidated Deposits (2006-2011)
R HOLDINGS, INC. arelationship driven organization’ A Closer Look: Total Consolidated Deposits (2006-2011) December 31,2006 Total $875.5 MM "Non interest Bearing Demand $124.2 MM oF 14% interest Bearing {$334.0 MM or 38% sco $417.3 MM or 48% RETAIL: $345.8 MM or 40% BROKERED: $71.4 MM or 8% December
Slide 18: Loan Portfolio Composition
R HOLDINGS, INC. Loan Portfolio Composition December 31, 2011 IN MILLIONS OF DOLLARS TYPE lar Mix Percent Mi Commercial & Industrial $ 3508 29.3% Non Owner Occupied Commercial Real Estate 349.6 29.2 Owner Occupied Commercial Real Estate 1678 140 Residential Real Estate 98.1 82 Direct Financing Lease
Slide 19: Key Differentiator: Correspondent Banking
Key Differentiator: Correspondent Banking + Uniquely positioned due 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 20: Key Differentiator: Wealth Management
Key Differentiator: Wealth Management + As of December 31, 2011: Approximately $1.1 Billion in Trust (and related) accounts and $479 MM in Brokerage (and related) accounts. + Competitively positioned due to our veteran team of Wealth Management professionals + Uniquely positioned with software, syst
Slide 21: Key Differentiator: SBA - USDA Lending
Key Differentiator: SBA - USDA Lending + SBA Lending in 2011: - Quad City Bank & Trust - 4th in the state of Iowa for Iowa banks (dollar volume) - Cedar Rapids Bank & Trust - Ist in the state of lowa for lowa banks (dollar volume) - Rockford Bank & Trust - 10th in the state of Illinois * USDA Lendin
Slide 22: Key Differentiator: m2 Lease Funds, LLC
Src INC. Key Differentiator: m2 Lease Funds, LLC * 80% Ownership by Quad City Bank & Trust / 20% Ownership by CEO John Engelbrecht + Acquired August of 2005 Leased Assets (in milions) Pre-Tax Eamings 2006 3530 $875,051 2007 $687 $421,142 2008 $797 $784,424 2008 $006 $855,679 2010 $854 $ 852741 2011
Slide 23: Stock Trading History
Sd he Sea icine Stock Trading History $25.00 $20.00 $15.00 $10.00 $5.00 ITE Ete “Trading Summary for GCRH - Sources: NASDAQ Orne, IDC Al infomation contained herein i obtained fom sources beteved to be ‘ezurle and rable, Ba because of the possbity of human and mechanical er aswel as ar facioe ALL NF
Slide 24: Book Value of Common Stock vs. Market Value
Book Value of Common Stock Vs. Market Value IN MILLIONS OF DOLLARS: Book Value Market Value e983
Slide 25: Questions
Tran, .Ou., QCR HOLDINGS, INC. Questions arelationship driven organization”
Slide 26: Appendix
Appendix
Slide 27: Our Mission
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. QCR Holdings, Inc. Executive Management Team LEFT TO RIGHT QCR HOLDING
Slide 28: Executive Management Team
nck... arelationship driv Executive Management Team DOUGLAS M. HULTQUIST, CPA President and Chief Executive Officer 36 Years in Banking/Financial Services TODD A. GIPPLE, CPA. Executive Vice President, Chief Operating Officer and Chief Financial Officer 27 Years in Banking/Financial Services JOHN H.
Slide 29: Peer Analysis 2011
Peer Analysis 2011 Equty! TCE! Crm Leveroge Capel Capital Loame) URI Loans Toran NAR) Ag ULRYLLP tmeaney nein Miter Aseets_ 0) (6) om) )_ tw) tm) Frat anos Cain Te 2900 vet 521 m1 te 32 94s 2On oss 0123 ass 14 tO Ama ansoiee Franca Gp, sro ark su ure Tit ar aa amth 2) tar shez am7e one Tat 308 oad 8
Slide 30: Peer Credit Analysis Graphs
Peer Credit Analysis Graphs Non-Performing Assets / Assets INSTITUTION TICKER NPAs / ASSETS % Peer Group: Macatawa Bank Corporation cae 920 350 Metcantie Bank Corpraton wat 604 Pay Mewian ‘Wert Suburban Bancorp, ne. we 579 3.00 ‘Great Souther Bancorp ne sec 538 Enieprit Financial Sevins Corp eFsc 37
Slide 31: Charge-Off Analysis
Charge-Off Analysis [Charge-ofAnaiysis ring Credit Cycle oe.201 (200) 123487000) “23487 %) 2007201 $00) oo (sd cay Bank an Tat Company 8283 art 230% 30 am eta Rap Bank ant Tt Cooary 3026 8.38 po pre es PROXY PEER GROUP: ‘tet Sub Bacon 779% 210030 oon Fat euy Capea 306% a20375 nm Frat arc Conran 220%
Slide 32: QCR Holdings, Inc. Peer Credit Quality
QCR Holdings, Inc. Peer Credit Quality NCOs / Average Loans Provision Expense / NCOs 500 Hace —*-Median acai ohana —ocrH —* Median sare so ‘Source: SNL Financial 1294/1
Slide 33: Consolidated Securities Portfolio
wee Ho! IGS, INC. QCR Holdings, ine Consolidated Securities Portfolio ‘Snapshot —As of 123.10 of 1231.10 Par Valo (000) argue PRovecteo ook Ve (0 ‘ rer = ‘ m0 Book Value __% Total <GaintLoss Book Yield Reprice Term Uveaand Goes GS 7 gency Fue) wien = mo ae 7 pean ey on Comparten) 1028 o% © 798 ra Se