Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (May 2013)
48 slides from Qcr's investor presentation, May 31, 2013
Slide 1: 2013 Investor Presentation
Vay OCR HOLDINGS, INC. 2013 Investor Presentation
Slide 2: Forward-looking statements
raat to, descriptions of the financial condition, results of operations, asset and credit quality trends, prfteiy. led eamings, future plans, strategies and expectations of QCR Holdings Inc. (the “Company statements contained in the Private Securities Litigation Reform Act of 1995 and is including t
Slide 3: Forward-looking statements (continued)
raat competition from a wide variety of local, regional, national and other providers of financial, investment and incl cluding, without limitation, the related ; (xii) changes in fective than anticipated: ro the effects of war o° droughts, tornados an mpany’ s markets; (xiv) te failure a it floodin
Slide 4: Non-GAAP financial measures
MEASURES These slides contain non-GAAP financial measures. For purposes of Regulation G, a non-GAAP financial measure f the registrant’ s historical or future financial performance, financial position or cash flows ve hs i ing amour e included in is a numerical re oF al that sichides amounts, or is
Slide 5: Table of Contents
IGS, INC. arrelationship driven org Table of Contents Who We Are Rockford Ba PiKeSe TRUSE sawsaruaevs QCR Holdings, INC. .......ecseeeeeee Our Strategy. Financials Key Appendix.
Slide 6: Rockford Bank & Trust Overview
Rockford Bank & Trust Overview ROCKFORD BANK & TRUST - SNAPSH January 3, 2005 Rockford Bank &Trustis legally formed. August 2006 November 2006 Guilford Road facility opened be May 2009 fae November 2009 ee June 2011 December. 2012 Executive Council ‘ March 31, 2013, $328 Million in assets April 30,
Slide 7: Directors / Senior Managers
Directors / Senior Managers Board of Directors roster and Chief Execubve Omer, fank and Trust Company 4, Rockford Bank and Trust ‘Sompany/Vles Present and General Counce, Viking Chemical Company Michael A. Bauer ‘Consultant, Co-Founder of QGR Holdings, ne. Charles E. Box Former Chairman, iinois Comm
Slide 8: Rockford Bank & Trust earnings
Provision expense Income before taxes * Notnecessanly a prediction of 2073 annual comings. (808) (2,228) (1,588) (400) (1,600) 4,175 932 112 2 952 (364) (120) (179) € (198) $811 $412 $593 $189 $756
Slide 9: Total Consolidated Assets
Total Consolidated Assets IN MILLIONS OF DOLLARS. Z Dec.06 Dec.07 Dec.08 Dec.09 Dee.10 Dee.11 Dec.12 Mar.13
Slide 10: Total Consolidated Deposits
Total Consolidated Deposits IN MILLIONS OF DOLLARS. gg 5 8 8 8 g § 3 g 8 & Dec.08 Dec.09 Deo.10 Dec.11 Dec.12 Mar.13
Slide 11: Rockford Bank & Trust Deposit Market Share Analysis
Rockford ray & Trust er Analysis ty * Deposits $ Market Share 1. Alpine Bank 7 961,009 17.9% 15.53% Harris 14 684,302 12.8% NA 3. JP Morgan Chase 7 638,513, 11.9% NA 4. Associated Bank 6 589,931 11.0% NA PNC Bank 10 344,345 6.4% 6. Blackhawk State Bank 6 324,449 6.1% 13.62% 7. Riverside Community Ba
Slide 12: Corporate Overview
Corporate Overview Acquired May 13,2013 QCRH Founded in 1993 Headquartered in Moline, IL SYMBOL - QCRH $2.09 Billion in assets $ 1.37 Billion in deposits $ 4.27 Billion in loans 10 Feel ities Quad City Bank & Tru Rockford Bat ee Tus} Cedar Repias Bank & Trust (2 ise Funds LLC (1) Shares Outstanding:
Slide 13: Who We Are
R iS, INC. driven orga
Slide 14: Top MSAs / Iowa and Illinois
Top 25 MSAs / lowa and Illinois MA oe Mapenile, LINW! Sa es Noe
Slide 15: Strategic Advantages
Strategic Advantages local decisions, local solution: * Credit quality better than peers * Historic growth better than peers + Top 10 Deposit market share in Rockford lth Management, m2 Leasin; and SBA/USDA lending
Slide 16: Net interest income and earnings 2008-2012
2008 2010 2011 2012 Net interest income $50,682 $49,864 $54,145 $57,649 Non-interest income 15,547 15,406 17,482 16621 Non-interest expense (46,937) (49,54 (60,993) (652,259) pre-provision 16,721 r ot Provision expense (16,976) (7,464) (6,616) (4,371) Income before taxes 3 257 13,998 17,640 Income t
Slide 17: Entity Wide Strategic Initiatives
Entity Wide Strategic Initiatives , over growth in Continue to improve asset quality falue utilizing
Slide 18: Entity Wide Strategic Initiatives
raat ‘driven orgar Entity Wide Strategic Initiatives assets hare (EPS), over growth in ane earnings by 30%, and earnings | Dae by 101% 2012. Continue to improve asset quality falue utilizing
Slide 19: Entity Wide Strategic Initiatives
wae Entity Wide Strategic Initiatives , over growth in assets jiluti ity raise So ineteased TCE from 3.85% to 4.02% Continue to improve asset quality ring 2012 and redeemed $10.2MM Deliver “relatis in SBLF Capital. Improved F P Pri falue More closely align “ to“ ” utilizing
Slide 20: Entity Wide Strategic Initiatives
Entity Wide Strategic Initiatives , over growth in Continue to improve asset quality utilizing
Slide 21: Entity Wide Strategic Initiatives
wae Entity Wide Strategic Initiatives , over growth in Reduced NPA’s from $40.5MM to Deliver (since 1261/11, _ nization” Improved F = d tock F falue ” utilizing
Slide 22: Entity Wide Strategic Initiatives
raat driven orgai Entity Wide Strategic Initiatives , over growth in assets Increased the value of our diluy_ Stock by $7.36 per share, | or 81%, since 12/31/11. Continue to improve asset quality capitalization of our company by $38.1MM. Deliver i i organization” Imp icing: Value utilizing
Slide 23: Entity Wide Strategic Initiatives
raat driven orgai Entity Wide Strategic Initiatives F , over growth in assets Continue to improve asset quality Researel regular investor outreach. 2” to “operating performance” sed transparency
Slide 24: Entity Wide Strategic Initiatives
Entity Wide Strategic Initiatives , over growth in Continue to improve asset quality Deliver Announced our acquisition of Community National Bank lation” on 2/14/13 and closed the Impr fl p\4| Anticipati i ( 5% EPS acoretion in 2014. itilizing A Afeansparency
Slide 25: Stock price increase
IGS, INC. arelationship driven org $16.50 $8.90 $9.14 $7.44 “ s S FFXX KKK KM KKK
Slide 26: An Increase of 81%
$16.50 An Increase of 81% Earnings t [. npa’s | gm J SBLF | 590 i $9.14 TCE t Coverage $7.14 Inv. ref “s oS FFXX KKK KM KKK
Slide 27: QCR Holdings Capital Structure
arrelationship driven organization QCR Holdings, ne eo Structure mber 31, DIVIDENDS / INTEREST Annually Quartert Preferred F* ty $29.9M at 5.00% $1,493,950 $973,338 Preferred E** — $26.0M at 7.00% $1,750,000 $437,500 Trust Il $12.4M floating at 3.21% (QML + 2.85%) 0 $99,510 Trust ll $8.2M floating a
Slide 28: Total Consolidated Assets
Total Consolidated Assets IN MILLIONS OF DOLLARS CAGR 1994-2012 24.77% CAGR 1994-2007 32.26% CAGR 2008-2012 6.86% & 8 8 5 8 885 8 8B 8 8 &@ 8 $ 8 & &§ $$ & B 8 g 8 6 6 6 86 8 8 8 8 8 8 88 Decor ec.08 ec09 Dee.10 Dee.t4 dect2
Slide 29: Total Consolidated Deposits
Total Consolidated Deposits IN MILLIONS OF DOLLARS. 0 Dec.96 Dec.97 Dec.98 Dec.99 Dec.00 Dec.01 Dec.02 Dec.03 Dec.o4 Dec.05 $2323 8 8 8
Slide 30: A Closer Look: Total Consolidated Deposits (2006-2012)
raat Look: A Closer Total Consolidated Deposits (2006-2012) December 31, 2006 Total $875.5 MM ‘Non Interest Bearing Demand $124.2MM oF 14%, "Interest Bearing $534.0MM or 38% S17 3 MM oF 4% RETAIL: $345,8MM or 40% BROKERED: $71 4 MM or 8% December 31, 2012 Total $1,374.1 MM ‘Non Interest Bearing Dema
Slide 31: Loan Portfolio Composition
Loan Portfolio Composition December 31, 2012 IN MILLIONS OF DOLLARS. TYPE Commercial & Industrial $ 3942 31% Non Owner Occupied Commercial Real Estate 3401 ra ‘Owner Occupied Commercial Real Estate 2049 16 Residential Real Estate 115.6 9 Direct Financing Leases 1037 8 Installment and Other Consumer
Slide 32: Key Differentiator: Correspondent Banking
Key Differentiator: Soivesnondent Banking mpetitively p * Depth of product offerings: - Loan Participations - Bank Stock Financing - Credit Card Services - Fed Funds Lines va and Wisconsin. ips to d th Total t or 3.7% of total loans/leases.
Slide 33: Key Differentiator: Wealth Management
Key Differentiator: Wealth Management ly $1.1 Bill eteran team of + Depth of product offerings: - Financial Planning - Asset Management - Trust Services - Estate Planning -Brokerageand RIA - Insurance - Family Office “big banks are going up market” Towa —
Slide 34: Key Differentiator: SBA - USDA Lending
Key Differentiator: SBA - USDA Lending SBA i Year Ending 9/30/1 4 City Bank & Trust - 8th in the state of ume) - Cedar Rapids Bank & Trust - 1st in th lume) - Rockford Bank & Trust - 11th in th lume) USDA i ti i & Trust d it lume)
Slide 35: Key Differentiator: m2 Lease Funds, LLC
OCR HOLDINGS, INC. Key Differentiator: m2 Lease Funds, LLC Assets (in milions) Pre-Tax Earnings 2006 3530 3 876,651 2007 $68.7 $1,421,142 2008 $797 $ 704424 2009 $908 $955,679 2010 $854 3 852,781 2011 $088 $2,060,470 2012 $1007 $3,867,182 + Key Niches: - Marine Equipment - Printing - Health Care ~ M
Slide 36: Book Value of Common Stock vs. Market Value
Book Value ot Common Stock Vs. Market Value IN MILLIONS OF DOLLARS: Book Value Market Value ec-28 ee-o4 060-95 ee 96 beer pec-o8 bee-99 ee-00 beet Deez eed Dee-04 ec bees bee-or ec-08 Dee-09 bee-10 Dees bec-t2
Slide 37: Focus Areas for 2013
ae [= felationshi criverrorganization’ arelation Focus Areas for 2013 ww Meet EPS expectations Integration of CNB Hold onto our Net Interest Margin Improve liquidity in our stock Drive down efficiency ratio Pay down Small i dit
Slide 38: Our Basic Game Plan
Our Basic Game Plan Hire the best people supplied with the tools they need. Clients get exceptional service by satisfied and motivated employees. Shareholders Will Be Rewarded. This is Community Banking!
Slide 39: Questions
Tan, wou. 1D) CR . noc. Questions |-a relationship driven organization”
Slide 40: Appendix
HOLDINGS, INC. arelationship driven organization” Appendix
Slide 41: QCR Holdings, Inc. Executive Management Team
LEFT TO RIGHT ‘ack Row (taning) Bill Tank Todd Gipple John Rodriguez Michael Wyffels E =e QCR Holdings, Inc. Executive Management Team OUR MISSION: QCR Holding:
Slide 42: Executive Management Team
Executive Management Team DOUGLAS M. HULTQUIST, CP: Rrelagt as Ciel exact ce 36 Years in Banking/Financial Services TODD A. GIPPLE, CPA Executive Vice President, Chief Operating Officer and Season ‘Years in Banking/Financial Services JOHN H. ANDERSON President and Chief Executive Officer, lund iy Ra
Slide 43: History of QCR Holdings, Inc.
wae History of QCR Holdings, Inc. 1993 1 by Mik hl 1994 Trust* -$1.18 Bill 2001 & Trust® $626 Milli t kford Bank & Trust* —$314 Mill 2005 R hi Lease Funds, LLC 2005 Quad City Bank & Ti c 1 f m2 Lease Funds, L 2012 - $110 Million in As: 2013 sonny National Bank Acquisition ferloo, Cedar Falls, Mason
Slide 44: Peer Analysis Q4 2012
Peer Analysis Q4 2012 8. Ter Trt Tool "Pv 00, Eauly/ Toes Gm “YY opal Capt Loam / —LUR/ Loans Yous NPAs Avge LLRY LP Ertcene Th Rao Ralo Rain Rtn Depsis Lote OREO Rao fetes Laan PAs NCO ORE mt Rao ton eke Asses 0) 6) ow) oe 6) 09 om eran Fane ne i asa ye 983 1355 1536 7605, 38 27 os as om ‘301 ex et
Slide 45: Peer Credit Analysis Graphs
HOLD} arelationship driven organizai Peer Credit Analysis Graphs ing Assets / Asset: INSTITUTION. Peer Group: vata Fnsnical USA, ne. 282 Fins ne Bancorp, In. ils Bancopors st Suburtan Banca, ne etn Arvricen Genco zon Bancorp eke of Kentucky Financial Comparten istves0va Fanci Grovp, ne st Bancrporat
Slide 46: Charge-Off Analysis
Charge-Off Analysis coe Goose Loans NoDs/teans “Pes Loans NCO /"Poat Loans 0.201208 (000) ‘23iar gow, 23407 (3) 2007201204 S00) o ‘QoR HOLDINGS, INC. AND SUBSIDIARIES: ‘ca Hating ne ‘i stn 2288 1 z2pi0 281% (usd yearn Tas Company ‘es cal 280% saa 288% Gein pasos Cong soe 798 351 =I 2 Ta Coneany ° wr
Slide 47: QCR Holdings, Inc. Peer Credit Quality
OCR HOLDINGS, INC. = or QCR Holdings, Inc. Peer Credit Quality NCOs / Average Loans Provision Expense / NCOs 100 + oso } 28 as 4009 4010 aon aor ae Foes Ton jon igus of 4 008 4009 4070 aarti one Source: Sh. Financ 27/12
Slide 48: QCR Holdings, Inc. Securities Portfolio
HOLD} aifelationship driven organization’ QCR Holdings, Inc. ar Vue (08) ok Vie (00 Maret Vale Aggregate Gain (000) Aggregate Losses (0008) Gaintoss 3s Percent of Bok Value Percent among Secures ‘uration fecTeD Bock Valve 9% Tetsl_-—<GainLese Bock eld Reprice Term Agency (Fed) 592 71% 230 08 co Foes