Qcr Holdings, Inc. · NASDAQ:QCRH
Qcr — KBW Community Bank Investor Conference 2015
36 slides from Qcr's conference presentation, Jul 29, 2015
Slide 1: KBW Community Bank Investor Conference
HOLDINGS, INC. KBW Community Bank Investor Conference July 2015,
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS but are not limited t are generally identifiable by use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “seek,” “target,” “potential, ‘should” or similar expressions, These forward: eon ioe > focus,” “may,” “could, ” credit risks and
Slide 3: Forward-Looking Statements - Continued
FORWARD-LOOKING STATEMENTS - Continued Commission, partic fing “Risk Factors” in i Commission
Slide 4: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES GAAP financial measure.
Slide 5: Corporate Overview
CORPORATE OVERVIEW NASDAQ - $1.8 Billion in Deposits 43 Facilities Quad City Bank & Trust ¢ munity Bank & Trust (3) Shares Outstanding: 11.8 Million Ownership: Insiders & Benefit Plans 23.0% Institutional & Mutual Funds 21.7%
Slide 6: Equity Offering Strategic Highlights
EQUITY OFFERING STRATEGIC HIGHLIGHTS peers peri i targeted 1.0% ROAA Better positi opportunities
Slide 7: Recent Equity Offering Results
RECENT EQUITY OFFERING RESULTS May 7 . 7 at $19.04 (pre-offering), th $ per shi M $: , an increase of PP! ly P y Changes in Capital Pos ly re Offering 3/31/15 Actual Tangible Common Equity / Tangible Assets Tier 1 pital Tier 1 Risk Based Capital / Average Tangible Assets 5.88% 7.24% 9.00% 10.30% 6/3
Slide 8: Investment Rationale
INVESTMENT RATIONALE Strong asset quality
Slide 9: Full Service Institution
FULL SERVICE INSTITUTION Gancaroiiant Banking Wealth Management systems and processes + More than in Brokerage (and related) accounts : Approximately a$71 milion portfolio of Services, Brokerage and RIA, Asset Management, Estate Planning and Financial Planning espondent bank loat osits, fee it parti
Slide 10: QCR Holdings, Inc. - Market Overview
QCR HOLDINGS, INC. - MARKET OVERVIEW . vetneate market share postion | in each MSA sé weds with room for continued g + Each MSA falls within the top 15 largest MSAs in IL and IA by total deposits + All 4 MSAs are projected to have household income growth above the national average QCRH Franchise Nat
Slide 11: "Capitalizing" on Opportunities in Our Market
“CAPITALIZING” ON OPPORTUNITIES IN OUR MARKET + Leverage renewed capital strength and relationship Distribution of Institutions in Targeted Markets (*) driven approach to capture greater organic market and relationship share + Selectively pursue accretive acquisition opportunities + Operating market
Slide 12: Top MSAs / Iowa and Illinois
TOP 25 MSAS / IOWA AND ILLINOIS Projected Median Projected Number of Population Household Median HH Branches 20 Grow Income CAGR for 52H 342488 (x 51780) 158 Spampsign Urbana 5088 r 236754 07 49,108 at ux Gly, WeNE-SD 3970 163.058 ons 43950 178 stawe Per IL 3600 160,500 xs) 51088 184 owa City, 1A 3.
Slide 13: Financial Highlights
HOLDINGS, INC. arelationship driven organization” Financial Highlights
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS 210 TAS1H10 TRU leaian [Teiat Assets $1780 i837 31,98 2.094 $2395 92.525 92492 92543 [Tol LoenslLeases 1208 1473 1201 1287 1460 1630 1954 45 [Tiel Deposts 11980 115 1 1374 1ga7 11680 178 1837 [Tengie Common Equiy’ 6: 2 113 139 148 207 lconsotidated Capita [ices Ta 3% 35% 3a % 70
Slide 15: Total Consolidated Assets
TOTAL CONSOLIDATED ASSETS CAGR From 1994-2014: 21.26% $3,000 » $2,500 ~ 2 8 bi $2,000 ~ ‘SuONIW UL $500 --o
Slide 16: Strong Commercial Loan Growth
STRONG COMMERCIAL LOAN GROWTH and Direct Financing Le: balances grew saporoxiniatety “AA% and 33%, respectively from 2013 to 2015Q2 * 17% overall loan growth from 2013 to + Commercial lending represents more than 85% of the portfolio * 2013 loan growth supplemented by acquisition of Community Nation
Slide 17: m2 Lease Funds LLC Overview
m2 LEASE FUNDS LLC OVERVIEW + National equipment leasing platform Lease Asset Generation and assets, medical equipment, and + High yield portfolio; average gross yield for YTD Q2 2015 was approximately 8.4% + Historically strong asset quality + Target of 10% of consolidated assets (~6.7% as of 6/30/
Slide 18: Asset Quality Overview
ASSET QUALITY OVERVIEW Classified Loans ($M) & NPAs / Assets Nonperforming Assets Composition — 2015Q2 $70.0 250% $50.0 1.50% Troubled Debt 40.0 1.06 $20.0 0.50% Nonaceruat Loans/ Leases 50.0% $700 0.00% 2011 2012-2013, aos a2 ‘sClassified Loans ($M) —NPAs / Assets (%) i ets il more than 60% from 20
Slide 19: Evolution of Funding Base
EVOLUTION OF FUNDING BASE Average Funding Base - 2010 Average Funding Base — 2015Q2 Noninterest E Bearing Noninterest . Deposits Borrowings Bearing Borrowings 13.7% 21.9% Deposits 33.4% $1,684M Time Deposits Deposits Time Deposits 27.6% 25.3% 16.7% ‘Source: Company documents. Dots in millon
Slide 20: Balance Sheet Restructure Results
BALANCE SHEET RESTRUCTURE RESULTS Annual Amount Weighted Pre-Tax ($ millions) Average Interest Rate elite! Savings) A interest margin on a Subordinated Debt 9 A (Series A) Repayment we S00% G02 go-forward basis A 3ML+ + Estimated after-tax aes aa ie $15.3 300bps $0.5 armings impact of De! (3.27%) ap
Slide 21: Attractive Revenue Mix & Growth Trend
ATTRACTIVE REVENUE MIX & GROWTH TREND Continued Strong Top Line Revenue Growth Trends ($M) re 2010 = 2011 2012 2013 2014 =2014Q2 201502 YTD YTD Net Interest Income = Noninterest Income (1) Provide stabity and complement spread revent Key Differentiators: - Correspondent banking (173+ relationships)
Slide 22: Improving Returns for Common Shareholders
IMPROVING RETURNS FOR COMMON SHAREHOLDERS Net Income to Common Shareholders ($M) ‘pp! ly $13.9 2010 2011 2012 2013 2014
Slide 23: Strategies to Achieve a 1.0% ROAA
STRATEGIES TO ACHIEVE A 1.0% ROAA F 6/30/15) . it i it it 15% of assets (26% as of 3/31/15), now 21.7% as of 6/30/15 l i d SB, component of core revenue . i by 15% lly (14 ly (14. 2014) than peer levels boost ROA
Slide 24: Concluding Remarks
HOLDINGS, INC. arelationship driven organization” Concluding Remarks
Slide 25: Concluding Remarks
CONCLUDING REMARKS in lowa and Illinois market * 3 charter model allo idiary wealth management, leasing and SBA/USDA lending + Strong asset quality > Attractively p institution:
Slide 26: Appendix
HOLDINGS, INC. arelationship driven organization” Appendix
Slide 27: History of QCR Holdings, Inc.
HISTORY OF QCR HOLDINGS, INC. 2015 Quad City Bancard Formed 1, 2013 65M IM capital raise
Slide 28: Executive Management Team
EXECUTIVE MANAGEMENT TEAM DOUGLAS M. HULTQUIST, CPA President and Chief Executive Offer 37 Years io Banking / Financia} Services alae ene Operating © ero Chiet Financial Officer "Years in Banking / Financia! Services JOHN H. ANDERSON President and Chief Executive Offeer, ‘Quad City Bank and Trust Co
Slide 29: The Strategic Value of Our Separate Charters
THE STRATEGIC VALUE OF OUR SEPARATE CHARTERS local decisions, local solution: than peer Rapid BA/USDA lendi and m2 Leasing
Slide 30: Quad City Bank & Trust
QUAD CITY BANK & TRUST CEO Finlist 2013 and 2014 ~ Quad Cities Best Place to Work Major Employers fock Island Arsenal eere & Compar jenesis Health INI Corporation he Hon Company /Allstee! Tinity Regional Health Systems /son Fresh Meats hlights - Quad Cities ‘The Rock Island Arsenal s the largest gov
Slide 31: Cedar Rapids Bank & Trust
CEDAR RAPIDS BANK & TRUST Highlights - Cedar Rapids International Headquarters for Rockwell Collins + us. on for Aegon USA : evitalzation - Douile Tree by Hilton Cedar Rapids Larty J. Helling, President & CEO Coweta Campler S144 ay prj esten 100.00 sat Assets: $860 Million’ (as of 6/30/15) + CRST In
Slide 32: Rockford Bank & Trust
ROCKFORD BANK & TRUST Highlights - Rockford AAR (largest aircraft maintenance company in Noth America, and thr argstin the ‘wold wil open a new fact at Chicago Rockford Airport generating jobs for 600 people Thomas D. Budd, President & CEO + Rock Valey College bulcing S5.1MM aviaton maintenance trai
Slide 33: Community Bank & Trust
COMMUNITY BANK & TRUST ( 4 COMMUNITY Highlights — Waterloo/Cedar Falls of additional spact tacey J. Bentley, President & CEO + John Deere recently cr tl ra ie i er Deposits: $123 Million (as of 6/30/15) total investment by Deere in Waterioo in the last + The cty of Waterioo provisionally approved fo
Slide 34: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS fangible Common Equity to Tangible Assets and Tangible Book Value Per Share {As of and forthe As of andor the Year Ended ‘Quarter Ended jecomber 3, June 30, (S inthousands, except per share data) 2008 2010 2a oz 2s 5 205 Tangible common equity, otal equity S 125595 $ 192671
Slide 35: Capital Ratios & Valuation
CAPITAL RATIOS & VALUATION cial Institutions with Assets Between $500M — $5.0B Pricing Metrics as of 5/8/15 Summary Financial Performance Median: Median: P/LT™M L™ L™ LT™m #ofinstitutions TCE Level P/TBV EPS ROAA ROAE ROATCE 7 >11% 104.7% 14.0x 0.89% 71% 7.3% 58 10% -11 122.7% 15.3x 0.93% 8.8% 9.6%
Slide 36: Street
Street 3551 7 Moline, Illinois 61265 www.gerh.com
QCR Holdings — KBW Community Bank Investor Conference 2015 on 6ix