Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — Investor Presentation (August 2017)
38 slides from Qcr's investor presentation, Aug 2, 2017
Slide 1: QCR Holdings, Inc. July 2017
QCR HOLDINGS, INC. July 2017 *
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation contains certain forward-looking statements within the meaning of Section 27A of the Securities 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,
Slide 3: Forward-Looking Statements - Continued
FORWARD-LOOKING STATEMENTS - Continued (jx) 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 o
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: Corporate Overview
CORPORATE OVERVIEW QCR Holdings, | Founded in 1993 Headquartered in Moline, IL NASDAQ - QCRH Minneapolis Russell 2000? Index Member as of June 30, 2015 $3.5 BILLION IN ASSETS $2.5 BILLION IN LOANS $2.9 BILLION IN DEPOSITS OF 23 FACILITIES @ @ ovad iy tanks Tat Qo © Cedar Rapids Bank & Trust (2) g se
Slide 6: Investment Rationale
INVESTMENT RATIONALE + $3.5B asset bank holding company with critical mass in attractive and target rich markets in lowa and Illinois, = Top 2 bank with 13% market share in the Quad Cities, lowa/lllinois and Top 4 in Cedar Rapids, lowa with 10% share = Quad Cities is the International Headquarters f
Slide 7: Unique Products and Services
UNIQUE PRODUCTS AND SERVICES CORRESPONDENT BANKING WEALTH MANAGEMENT + Competitively positioned with veteran staff, software, systems and + $2.4B in Trust (and related) accounts and $954MM in Brokerage processes (and related) accounts as of 6/30/17 + More than 181 relationships to date with $289 mil
Slide 8: QCR Holdings, Inc. - Market Overview
QCR HOLDINGS, INC. - MARKET OVERVIEW + Meaningful market share position in each MSA served, with room for continued growth + Each MSA falls within the top 15 largest MSAs in IL and IA by total deposits Deposit Market Share Overview ($M) ‘Markot Rank 2 4 $18,000 $12,000 $6536 $6,000 $4969 $1,089 Se ‘
Slide 9: "Capitalizing" on Opportunities in Our Market
“CAPITALIZING” ON OPPORTUNITIES IN OUR MARKET + Leverage renewed capital strength and relationship driven approach to capture greater organic market and relationship share + Sele ly pursue accretive acquisition opportunities Operating markets are highly fragmented: = 907 community banks are headquar
Slide 10: Top MSAs / Iowa and Illinois
TOP 25 MSAS / IOWA AND ILLINOIS lumber of Number of Total Population Deposits (Sm instutions "Branches Population Chicago Naperite ign, LBW so89e74 198 4402 9,565,680 018% 865458 130% St Louis, MOA 95,194 129 1.308 2a1ss71 023 9287 138 COmaha-Counci Bit, NEA 31,002 2 45 90,004 094 61.838 13 Des Mone
Slide 11: QCR Holdings, Inc.
HOLDINGS, INC. arelationship driven organization”
Slide 12: Total Consolidated Assets
TOTAL CONSOLIDATED ASSETS CAGR From 1994-2016: 22.36% $4,000 $3,000 $2,000 $1,000 $0 Source: Compan ocoments, ot a mos a _—
Slide 13: Income Statement Results & Key Earnings Metrics
INCOME STATEMENT RESULTS & KEY EARNINGS METRICS Ferellrsce iene lace ce lere crc Tova unis pie ins ins nie pine Se Net Income Available to soa sus $139 $169 $209 Sa7.7— $294 $18.0 Common NIM (%)(TEY)(Non-GAAP) 3.10% 3.03% «3.15% «3.37% «3.37% «3.75% 3.75% «= 3.860% ROAA (%) 0.62% 0.64% 0.61% © 0.66%
Slide 14: Strong Commercial Loan Growth
STRONG COMMERCIAL LOAN GROWTH oan Growth Trend “) $3,000 + 35% organic loan growth from 2013 to 2016 (excludes Community State Bank) saan + Commercial lending® represents iw) more than 87% of the portfolio. $2,000 suave Lis] + 2013 loan growth supplemented by Sr acquisition of Community National am
Slide 15: m2 Lease Funds LLC Overview
m2 LEASE FUNDS LLC OVERVIEW + National equipment leasing platform ation + Focus includes commercial equipment! building and construction machinery and se assets, medical equipment, office eu aM equipment (computer hardware and se software), and vehicles classified as heavy equipment $150 + High yiel
Slide 16: Asset Quality Overview
ASSET QUALITY OVERVIEW Management continues to focus on maintaining excellent asset quality and resolving problem assets Classified Loans ($M) & NPAs / 8 $60 141% $50 2285 31% : li zou. 2012 20132014 SE clasiid Loans (5M) ‘Source: Company documents, Olas in milion. 0.74%, 2015 2016 2017 02 NPR'S / A
Slide 17: Evolution of Funding Base
EVOLUTION OF FUNDING BASE Average Funding Base - 2010 Average Funding Base - 2017 Q2 Borrowings 334% borrowings 6.5% sm vonintarest Basing moninteeet Bearing Deport 13.7% Deport 244% $1,684M $3,036M Interest Bearing Demand Interest Bearing Oemand Deport 25.3% Deporte 516% ‘Time Depots 27.6% ‘Time De
Slide 18: Attractive Revenue Mix & Growth Trend
ATTRACTIVE REVENUE MIX & GROWTH TREND Continued Strong Top Line Revenue Growth Trends ($M) CAGR From 2010 - 2016: 11.03% Strong fee income streams provide stability and complement to spread revenue $150 gus Key Differentiators: $100 + Wealth Management (83.18 in AUM as of 60/17) $75 + Correspondent
Slide 19: Improving Returns for Common Shareholders
IMPROVING RETURNS FOR COMMON SHAREHOLDERS Net Income to Common Shareholders ($M) Approximately ~44.48% Net Income to Common CAGR From 2011 - 2016 $30.0 $25.0 $20.0 $15.0 | $10.0 $5.0 > $0.0 2011 2012 2013 2014 2015 2016 Source: Company documents. Datars in mins a relationship driven ~~
Slide 20: Strategies to Continue to Drive Shareholder Value
STRATEGIES TO CONTINUE TO DRIVE SHAREHOLDER VALUE * Continue strong organic loan and lease growth to maintain loans and leases to total assets ratio in the range of 70-75% (74% as of 6/30/17) + Continued focus on growing core deposits to maintain reliance on wholesale funding to less than 15% of ass
Slide 21: Concluding Remarks
CONCLUDING REMARKS * Critical mass in attractive and target rich markets in lowa and Illinois + 4 charter model allows subsidiary banks to customize solutions by market + Differentiated product offering includes correspondent banking, wealth management, leasing and SBA/USDA lending + Strong asset qu
Slide 22: QCR Holdings, Inc.
HOLDINGS, INC. arelationship driven organization”
Slide 23: History of QCR Holdings, Inc.
HISTORY OF QCR HOLDINGS, INC. 1993 1994 2015 2016 - Founded by Mike Bauer and Doug Hultquist - $14 Million IPO ~ Quad City Bank & Trust (De Novo) — Currently $4.40 Billion in Assets - Quad City Bancard Formed - Cedar Rapids Bank & Trust (De Novo) ~ Currently $994 Million in Assets (includes Communit
Slide 24: Executive Management Team
EXECUTIVE MANAGEMENT TEAM DOUGLAS M, HULTQUIST, CPA President and Chef Executive Offcer 40 Years in Banking /Financial Services ‘TODD A. GIPPLE, CPA Executive Vice President, Chief Operating Officer and Chief Financial Offcer 32 Years in Banking / Financial Services JOHN H. ANDERSON President and Ch
Slide 25: The Strategic Value of Our Separate Charters
THE STRATEGIC VALUE OF OUR SEPARATE CHARTERS + 4 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 + 4 charters supported by
Slide 26: Quad City Bank & Trust
QUAD CITY BANK & TRUST John H. Anderson, President & CEO. Assets: $1.40 Billion (as of 6/30/17) Population: 383,950 Market Deposits: $8.0 Billion Renkod 2% vth 13.196 market share and over $1,049 Milionin Aeposits in Davenport Moline Rock islend MSA Finalist 2013 and 2014 - Quad Cites Best Pace to W
Slide 27: Cedar Rapids Bank & Trust
CEDAR RAPIDS BANK & TRUST Larry J. Helling, President & CEO Assets: $994 Million” (as of 6/30/17) Population: 268,537 Market Deposits: $5.5 Billion ‘Top 4 bank wth 10.2396 market share and over $588 milion in deposits in Cadar Rapids MSA 2014 & 2015 Finalist ~ Coolest Place to Work in Cedar Rapids T
Slide 28: Rockford Bank & Trust
ROCKFORD BANK & TRUST Thomas D. Budd, President & CEO Assets: $426 Million (as of 6/30/17) Population: 338,034 Market Deposits: $5.8 Billion Ranked & with §.196 market share and over $297 Millon in epost mn Rockford MSA Major Employers Rockford Public School District ‘Swedish American Heath Systems
Slide 29: Community Bank & Trust
COMMUNITY BANK & TRUST COMMUNITY BANK&TRUST Stacey J. Bentley, President & CEO Deposits: $124 Million (as of 6/30/17) Population: 171,484 Market Deposits: $3.3 Billion Renked 10th 3.8% mart share and ove $125 Mion in deposits in Waterioo-Cedar Falls MSA 2018 Employer Choice Award ~ Courter Communica
Slide 30: Community State Bank
COMMUNITY STATE BANK Community state bank Ronald M. Nagel, President & CEO Assets: $643 Million (as of 6/30/17) Population: 639,120 Des Moines MSA, Market Deposits: $16.7 Billion Ranked 8® with 3 30% marketshare and over $481.4 Mion in eposts in Des Moines ~ West Oes Moines MSA 2017 Voted Best Bank
Slide 31: Group Operations
Group Operations + Accounting and Treasury — Beth Grabin and John Oakes + Customer Service/Item Processing — Kathy Francque + Deposit Operations — Beth Easterla and John Rodriguez + Funds Management — John McEvoy + Human Resources — Anne Howard and Shellee Showalter + Information Technology — Michae
Slide 32: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share Year ended Drcember 3, (5 inthousonds, except pr shore data) rou 202 208 roe 201s 2016 ten “Tangble Common Equity Total equity $ maass$ © Moasa «$147,577 $7 $s eBs $—286oH «$0508 Less: Prefered Equit
Slide 33: Deposit Market Share - Quad City Bank & Trust
Deposit Market Share - Quad City Bank & Trust Institution Name Offices in MSA Deposi 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 1 760.1 9.52% 5. Triumph 10 545.4 6.83 % 6. First Midwest Bank
Slide 34: Deposit Market Share - Cedar Rapids Bank & Trust
Deposit Market Share - Cedar Rapids Bank & Trust Institution Name Offices in MSA Market Share 1. U.S. Bank 10 $ 933.7 16.87 % 2. Wells Fargo Bank " 601.3 10.87 % 3. Farmers State Bank 8 586.2 10.59 % 4. Cedar Rapids Bank & Trust 2 565.9 10.23 % 5. Hills Bank & Trust 6 369.8 6.68 % 6. Bankers Trust C
Slide 35: Deposit Market Share - Rockford Bank & Trust
Deposit Market Share - Rockford Bank & Trust Institution Name Offices in MSA 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
Slide 36: Deposit Market Share - Community Bank & Trust
Deposit Market Share - Community Bank & Trust Institution Name Offices in MSA Deposits* 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
Slide 37: Deposit Market Share - Community State Bank
Deposit Market Share - Community State Bank Institution Name Offices in MSA Deposits* Market Share 4. 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 5.7
Slide 38: 3551 7th Street, Moline, Illinois
3551 7'" Street Moline, Illinois 61265