Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (November 2023)
24 slides from Qcr's investor presentation, Nov 2, 2023
Slide 1: QCR Holdings, Inc. Investor Presence
QCR HOLDINGS, INC. Investor Presence
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Slide 3: Forward-Looking Statements
3 FORWARD - LOOKING STATEMENTS Special Note Concerning Forward - Looking Statements . This document contains, and future oral and written statements of the Company and its management may contain, forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995
Slide 4: Consistent Top Tier Financial Performance
Consistent Top Tier Financial Performance • Upper quartile returns compared to proxy peers • EPS CAGR of 18.8% in last five years and positioned for sustained growth • High profitability and low dividend payout ratio quickly builds core equity capital Diversified Sources of Revenue • Diverse and gro
Slide 5: Exceptional Growth in Key Financial Metrics
5 Exceptional Growth in Key Financial Metrics Since the end of 2018, our company has grown total consolidated assets at a 14.8%** compounded annual growth rate and delivered consistent, steady growth - outperforming many of our peers. CAGR = Compound Annualized Growth Rate. *Annualized ** Data exclu
Slide 6: How is QCRH Unique? Diversified Business Lines
6 How is QCRH Unique? Diversified Business Lines Drive Outstanding Results Traditional Banking Our Complementary High - Performing Business Lines Correspondent Banking Wealth Management Specialty Finance Group • Consumer & retail banking • Complex commercial lending • Sophisticated treasury manageme
Slide 7: Specialty Finance Group (SFG): Municipal and Tax Credit Financing Solutions
7 $10.8 $28.3 $74.8 $61.0 $41.3 $0 $20 $40 $60 $80 2018 2019 2020 2021 2022 9/ 30/23 Fee Income Growth ($MM) Our SFG business is unique and offers: • Strong pipelines built on relationships • Complexity which creates significant barriers to entry by competitors • Consistent source of revenue in all
Slide 8: Low Income Housing Tax Credit Loans
QCRH (LENDER) BORROWER / LOW INCOME HOUSING PROJECT TAX CREDIT EQUITY INVESTORS Loan Payments Tax Credits Equity Investment Loa n Rent STRONG BORROWERS • Experienced low - income housing developers • Tax credit investors are primarily other banks and corporate investors HIGH - QUALITY LOANS • Very s
Slide 9: A Broad Scope of Wealth Management Services
9 A Broad Scope of Wealth Management Services $11.4 $12.0 $12.6 $15.3 $14.5 $15.2 $0 $6 $12 $18 2018 2019 2020 2021 2022 9/ 30/23 (1) All data excludes Bates and RB&T. (2) Annualized Revenue ($M) (1)(2) $2.5 $3.1 $3.4 $4.2 $3.6 $3.8 $0.9 $1.0 $1.0 $1.2 $1.0 $1.1 $0 $2 $4 $6 2018 9/ 30/23 $4.1 $5.4 $
Slide 10: We Do Business in Vibrant Markets
10 We Do Business in Vibrant Markets • Relationships matter and differentiate us from big banks • Robust commercial, industrial, and technology activity • Ability to gain prominent market share • Mid - sized metros 200K - 500K population MSAs • Strong demographics & highly educated workforce drive s
Slide 11: A Consistent Track Record of Asset Growth
11 $2.9 $3.5 $4.4 $4.9 $5.7 $6.1 $0.6 $0.3 $0.6 2016 2017 2018 2019 2020 2021 2022 9/30/23 TOTAL ASSETS ACQUIRED ASSETS $8.5 $7.9 $1.2 (1) Rockford Bank & Trust assets were removed from this data. (2) Includes $336.2 million of the assets of m2 Equipment Finance, as this entity is wholly - owned by
Slide 12: Loan Growth Driven by Commercial Lending
12 $1.3 $1.5 $1.7 $1.6 $1.7 $1.8 $1.6 $1.8 $2.1 $2.6 $3.7 $4.1 $0.1 $0.2 $0.1 $0.2 $0.1 $0.2 $0.1 $0.3 $0.1 $0.5 $0.1 $0.5 $0.1 $0.1 $0.1 $3.3 $4.3 $3.7 $4.7 $0.1 $6.1 $0.1 $6.6 $0.1 2018 2019 2020 2021 2022 9/30/23 Comme rcial & Industrial Comme rcial RE Dire ct Fin. Leases Residential RE Consumer
Slide 13: Our High-Performing CRE Portfolio
13 Our High - Performing CRE Portfolio CRE - Office 3% CRE - Non - office 24% Multi - Family 4% Construction & Land Dev 7% LIHTC 13% LIHTC - Construction 14% TOTAL CRE PORTFOLIO: $4.3 Billion • CRE IS 65% of total loans • CRE - Office represents only 3% of Total Loans • 14 loans > $3 million (total
Slide 14: Deposit Growth Driven by Core Deposits
14 Deposit Growth Driven by Core Deposits Core Deposits* Represent 96% of Total Deposits ($B) as of 9/30/23 * Core deposits are defined as total deposits less brokered deposits. Rockford Bank & Trust deposits excluded from this data. 34% 31% 25% 20% 21% 16% 48% 52% 60% 57% 65% 68% 15% 15% 13% 16% 12
Slide 15: Diversified and Granular Deposit Base
15 Diversified and Granular Deposit Base Average Account Balance: $18,000 Portfolio Percentage: 29% Average Account Balance: $124,000 Portfolio Percentage: 62% Average Account Balance: $1,100,000 Portfolio Percentage: 9% As of 9/30/23. *Insured deposits represent FDIC insured, State insured, collate
Slide 16: Robust and Diverse Liquidity
$0.1 $1.3 $0.2 $0.7 $0.1 $0.5 $1.4 Total Liquidity Sources (Ex. AFS and HTM Bonds) Total Uninsured Deposits * 16 Robust and Diverse Liquidity $3.0B $1.3B Dollars In billions. As of 9/30/23. *Uninsured deposits exclude deposits that are FDIC insured, State insured, collateralized, or insured through
Slide 17: Our Strong Capital Position
17 Our Strong Capital Position QCRH is well - positioned for long - term success: • Successful subordinated debt raises in 2019, 2020 and 2022 bolstered total risk - based capital • Lowest dividend payout ratio in peer group retains capital for strong organic and M&A growth • Acquisition of Guaranty
Slide 18: Top Tier TBVPS Growth
18 Top Tier TBVPS Growth * TBVPS of $40.68 and $45.19 for 2022 and 9/30/23 excludes the impact of AOCI. ** KRX calculated as the median of the current 50 KRX constituents excluding PACW as of June 30, 2023. QCRH TBVPS ($) TBVPS (%) $14.70 $15.92 $17.08 $14.29 $17.50 $22.70 $20.11 $18.81 $24.04 $38.0
Slide 19: NPAs / Assets and Strong Credit Culture
19 NPAs / Assets Focused on maintaining excellent asset quality and resolving problem assets, resulting in: • Better than peer historical loss rates • Conservative reserve for credit losses • Strategy to aggressively manage problem credits • Average NPAs of 0.90% over the past 20 years 0.81% 0.56% 0
Slide 20: Consistent Improvement in Shareholder Returns
20 Consistent Improvement in Shareholder Returns $46 $59 $63 $100 $115 $109 $3.08 $3.66 $3.96 $6.27 $6.80 $6.46 2018 2019 2020 2021 2022 9/30/23* Adjusted Net Income Adjusted EPS Note: All data excludes Rockford Bank & Trust and 2019 excludes $12.3 million gain on sale from the RB&T transaction. * A
Slide 21: QCRH Is Building a Long-Term EPS Track Record
21 QCRH Is Building a Long - Term EPS Track Record QCRH Core EPS ($) Core EPS CAGR (%) KRX* 3.0% 16.9% 5 - year 7.3% 14.1% 10 - year 5.1% 8.5% 20 - year $0.92 $0.53 $1.84 $1.79 $1.72 $1.99 $3.96 $3.66 $3.08 $2.66 $2.31 $6.80 $6.46 $6.27 * KRX calculated as the median of the current 50 KRX constituen
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Slide 24: 3551 th Street, Moline IL 61265 © Copyright 2023 QCR Holdings, Inc. All Rights
3551 7 th Street, Moline IL 61265 © Copyright 2023 QCR Holdings, Inc. All Rights Reserved