Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (December 2016)
38 slides from Qcr's investor presentation, Dec 5, 2016
Slide 1: QCR Holdings, Inc. November 2016
HOLDINGS, INC. November 2016
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS profitability, projected are generally identifiable by use use of the words "believe," “expect,” intend," “anticipate,” “estimate,” “project,” “seek,” ‘arget,” “potential,” “focus,” “could, uncertainties.
Slide 3: Forward-Looking Statements - Continued
FORWARD-LOOKING STATEMENTS - Continued ce Risk Factor statements. Commission
Slide 4: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES
Slide 5: Corporate Overview
CORPORATE OVERVIEW NASDAG—GCRH Minneapolis Russet 2000” index Member as of June 30, 2 $3.3 BILLION IN ASSETS $2.4 BILLION IN LOANS $2.6 BILLION IN DEPOSITS : Qietes 23 FACILITIES Q @ Quad City Bank & Trust (5) Q Cre © Cedar Rapids Bank & Trust (2) Q Fen ay ‘Chicago Trt (2) everrase s OLSE rat SHARES
Slide 6: Investment Rationale
INVESTMENT RATIONALE + Strong asset quality
Slide 7: Unique Products and Services
UNIQUE PRODUCTS AND SERVICES CORRESPONDENT BANKING WEALTH MANAGEMENT. + $1,858 in Trust (and related) accounts and $727MM in Brokerage S825 (and related) accounts as of 9/30/16 + More than 179 relationships to date with an average weighted ar balance of $320 milion in total nor-interest bearing depo
Slide 8: QCR Holdings, Inc. - Market Overview
QCR HOLDINGS, INC. - MARKET OVERVIEW ‘Markot Rank 2 4 $18,000 $12,000 $6,536 $6,000 $4969 $1,089 ‘0 — Quad cities, aa Cedar Rapids 1A OCR Holdings Deposits ‘Ssue: SH Prac Deport cate fan 30,216 Datars a mons 8 10 8 $1622 $5,550 san $297 Bs 5381 Roekord, Waterloo Cedar Falls, IA Des Molnes/Ankem Comp
Slide 9: Capitalizing on Opportunities in Our Market
“CAPITALIZING” ON OPPORTUNITIES INOUR MARKET newed capital strength and relationship * aiiven rapproach to capture greater organic market and robaonship share stributi Targeted Markets a + Operating markets are highly fragmented: call 107 community banks are headquartered in Illinois, oe and Weeoneh
Slide 10: Top MSAs / Iowa and Illinois
TOP 25 MSAS / IOWA AND ILLINOIS Projected Projected Humberot — Munerot Population Mousehold Median Hit usa epost instator ranches aon ‘crowih ‘income ‘Growth icagoNaperile Ein, L-NWI so89974 1 “ 9.565680 018% 865458 130% Loui, MOL 95,194 1 1 2aiss71 023 59.287 138 raha. Counel Bie, NEA 31,002 90,004
Slide 11: Financial Highlights
HOLDINGS, INC. Financial Highlights
Slide 12: Total Consolidated Assets
TOTAL CONSOLIDATED ASSETS CAGR From 1994-2015: 21.98% risen
Slide 13: Income Statement Results & Key Earnings Metrics
INCOME STATEMENT RESULTS & KEY EARNINGS METRICS Repated Reported ——~Repated «Reported ©—«sCare«—==Repted «Coe nave Bays AYA BALSA 9posvTD —_s/s/ievT diet Income: AitallaHie.t0 $91 sus $39 $169 $209 $192 $206 Common NIM (%) 310% «3.03% «3.15% 3TH «337% 86S «3.5% ROAA (%) 062% «064% «=—=«OK1% =O SMH .
Slide 14: Strong Commercial Loan Growth
STRONG COMMERCIAL LOAN GROWTH + 33% organic loan growth from pots to Q3 2016 (exctudes Community State + Commercial lending® represents more than 87% of the portfolio loan growth supplemented by “petition of Community National Bancorporation-Waterloo + 2016 loan growth supplemented by acquisition of
Slide 15: m2 Lease Funds LLC Overview
m2 LEASE FUNDS LLC OVERVIEW Lease Asset Generation + National equipment leasing platform + Focus includes commercial equipment! building and construction machinery ical equipment, office and ass equipment (comy rardware and oftware), and veil classified as heavy equipmen + High yield portfolio; aver
Slide 16: Asset Quality Overview
ASSET QUALITY OVERVIEW Classified Loans ($M) & NPAs / Assets $70 2.06% $60 1.41% $50 228% 31% $40 $30 $20 zo 20122013, 2014 insted Loans (5m) Source: Company documents, Olas inion. 0.69% 0.74%, 201s 201603, NPR'S / Assets (0) Nonperforming Assets Composition — 2016 Q3 1.73% $22.7M ‘NonacerualLoans/l
Slide 17: Evolution of Funding Base
EVOLUTION OF FUNDING BASE Average Funding Base - 2010 Average Funding Base ~ 2016 Q3 Borrowings 11.8% Borrowings 334% Noninerest Gearing sm oninteeet earng Deport 13.7% Deports27.7% $2,542M Interest Bearing Demand Interest Bearing Oemand Deport 25.3% Deporte. 5 ‘Time Deposits 27.6% ‘Time Deposits 16
Slide 18: Attractive Revenue Mix & Growth Trend
ATTRACTIVE REVENUE MIX & GROWTH TREND Continued Strong Top Line Revenue Growth Trends ($M) CAGR From 2010 - 2018: 8.47% Strong fee income streams provi cee and complement Key Differentiators: Wealth Management ($2.58 in AUM) rrespondent banking avs relationships) + SBA/ USDA guaranteed loan sales +
Slide 19: Improving Returns for Common Shareholders
IMPROVING RETURNS FOR COMMON SHAREHOLDERS Net Income to Common Shareholders ($M) From 2011 ~ 2015 2011 2012 2013 2014 2015-2016 03 YTD pine
Slide 20: Strategies to Continue to Drive Shareholder Value
STRATEGIES TO CONTINUE TO DRIVE SHAREHOLDER VALUE D9 £ 9/30/1 + Continued reductions in wholesale funding hv ess than 15% of assets (30% as of 12/31/14), now 13.0% as of 9/30) d SBA | , toa more 10% annually level + Participa boost ROAA, i
Slide 21: Concluding Remarks
CONCLUDING REMARKS + 4 charter model all market if i wealth management, | lendi + Strong asset quality pp for institutions + Attractively
Slide 22: QCR Holdings, Inc.
HOLDINGS, INC. arelationship driven organization”
Slide 23: History of QCR Holdings, Inc.
HISTORY OF QCR HOLDINGS, INC. 1995 - Quad City Bancard Formed 2015 = S6SMM capital raise
Slide 24: Executive Management Team
EXECUTIVE MANAGEMENT TEAM JOUGLAS M, HULTQUIST, CPA President and Cit Executive Ofer 39 Years in Banking /Financal Services iPPLi , CPA Executive Vice President, Shere [Officer and Chief Financial Offcer 31¥e ing / Financial Services JOHN H, ANDERSON Prete nd it Exar Oe, (Quad City Bank and Trust Co
Slide 25: The Strategic Value of Our Separate Charters
THE STRATEGIC VALUE OF OUR SEPARATE CHARTERS local decisions, local solution: Historic deposit growth better than peers Historic loan growth better than peers SBA/USDA lending, and m2 Leasing
Slide 26: Quad City Bank & Trust
QUAD CITY BANK & TRUST John H. Anderson, President & CEO Assets: $1.41 Billion (as of 9/30/16) Population: 383,950 Market Deposits: $8.0 Billi Ranked 2% with 13.1% marketshare and over $1,049 Milion in Aeposts in Davenport Moline-Rock Island MSA Quad Cities Highlights “The Rock lind Arena isthe larg
Slide 27: Cedar Rapids Bank & Trust
CEDAR RAPIDS BANK & TRUST GEDA oe revise Highlights BANK & for Rockwet Coins TRUST U.S. Headquarters for Aegon USA Larry J. Helling, President & CEO Demiay Revision - asia Tre by ion Car Rape Convention Cone: Assets: $888 Million” (as of 9/30/16) Double Tree Hotel RST Intemational constructing 11-st
Slide 28: Rockford Bank & Trust
ROCKFORD BANK & TRUST ). Budd, President & CE Assets: = en (as of 9/30/16) Populatior Rockford Highlights open in 2018 [AAR (largest aircraft maintenance company in North America, and ti largest in the word) ‘recently opened a new 41MM facilty at Chicago Rockford Airport generating jobs for $00 peop
Slide 29: Community Bank & Trust
COMMUNITY BANK & TRUST BANK@ Re TRUST on J. Bentley, President & CEO its: $134 Million (as of 9/30/16) Billion Ranked 10" with 3.8% market share and over $125 Mion in in Waterioo-Cedar Falls MSA, 2016 Employer Choice Award ~ Courier Communications sh Meat Memorial Hoel Oneerty (of Northern lowa Targ
Slide 30: Community State Bank
COMMUNITY STATE BANK community state bank Ronald M. Nagel, President & CEO Assets: $580 Million (as of 9/30/16) pean: 639,120 Des Moines MSA et Deposits: sted 7 Billion Jove $484 Mion n ‘Meredith Corporation ‘Tones Spices/ACH Foods: eure FIC seat mae! hr ta prove by SL Fan ‘egos cunt cf 076 sspears
Slide 31: Group Operations
Group Operations Tr y — Beth Grabin and John Oake: + Compliance — Peggy Bishop + Customer Service/Item Aen — Kathy Francque + Funds Management — John McEvoy Jill DeKeyser + Information Technology + Internal Audit — Tim Harding + Loan Operations — Pam Goodwin
Slide 32: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share ea [Atofandtor th Yen ended Decmber 33, unter andes mer (5 inthousonds, except per shore dete) 2010 zou oR 2013 208 2015 2016 Tangible Common Equity r $ anzs71_ $= maass§—taoass «$= a7S77 «$$ «= maor
Slide 33: Deposit Market Share - Quad City Bank & Trust
Deposit Market Share - Quad City Bank & Trust Institution Offices Depos Market Share 1. Wells Fargo Bank 16 $1,112.3 13.93 % 2. Quad City Bank & Trust 5 1,049.0 13.14 % 3. Blackhawk Bank & Trust 19 966.7 12.11 % 4, U.S. Bank " 760.1 9.52% 5. Triumph 10 545.4 6.83 % 6. First Midwest Bank 6 426.7 5.34
Slide 34: Deposit Market Share - Cedar Rapids Bank & Trust
Deposit Market Share - Cedar Rapids Bank & Trust Offices in MSA 1 10 2. Wells Fargo Bank " 3. Farmers State Bank 8 4. Cedar Rapids Bank & Trust 2 5. Hills Bank & Trust 6 6. Bankers Trust Co 3 7. Guaranty Bank & Trust 6 8. Farmers & Merchants Savings Bank 4 9. NXT Bank 3 10. Bank of the West 3 Deposi
Slide 35: Deposit Market Share - Rockford Bank & Trust
Deposit Market Share - Rockford Bank & Trust Institution Deposits* Market Share 1. Alpine Bank & Trust 17 $ 1,080.4 18.48 % 2. BMO Harris 10 7237 12:38 % 3. JP Morgan Chase 7 639.8 10.94 % 4. Associated Bank 6 607.0 10.38 % 5. Illinois Bank & Trust 4 386.6 6.61% 6. Blackhawk Bank 5 316 6.36 % 7. PNC
Slide 36: Deposit Market Share - Community Bank & Trust
Deposit Market Share - Community Bank & Trust Institution Market Share 1. Farmers State Bank 8 $587.9 17.56 % 2. U.S. Bank 6 365.7 11.09 % 3. Lincoln Savings Bank 5 308.7 9.36 % 4. Wells Fargo Bank 4 286.6 8.69 % 5. First National Bank 6 283.2 859 % 6. Regions Bank 5 180.9 5.49 % 7. GNB Bank 3 164.2
Slide 37: Deposit Market Share - Community State Bank
Deposit Market Share - Community State Bank Institution Deposits* Market Share 1. Wells Fargo Bank 19 $3,117.0 21.39% 2. Bankers Trust 19 2,292.2 15.73 % 3. West Bank 8 1,254.9 8.61% 4. U.S. Bank 15 1,062.3 7.29% 5. Bank of America 4 866.1 5.94% 6. Great Western Bank 8 831.9 5.71% 7. Bank of the Wes
Slide 38: 3551 7th Street, Moline, Illinois
3551 7" Street Moline, Illinois 61265