QCR Holdings, Inc. · NASDAQ:QCRH
QCR — Investor Presentation (February 2017)
38 slides from QCR's investor presentation, Feb 1, 2017
Slide 1: QCR Holdings, Inc. December 2016
HOLDINGS, INC. December 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 filing)
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 $2.7 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. sses + $1.98 in Trust (and related) accounts and $889MM in Brokerage (and related) accounts as of 12/31/16 » esata restore pdtv nanereieyecctth ee ORMETA aes of $3. lon ts nore! Beara cenostcat 12% of product offerings inoluding T
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 1994-2016: 22.36% Source: Compan cocomets oo mmo,
Slide 13: Income Statement Results & Key Earnings Metrics
INCOME STATEMENT RESULTS & KEY EARNINGS METRICS Repated Reported ——~Repated Reported Repoted cae pave Bays nays RAIS aS mie | aaae diet Income: AitallaHie.t0 $91 sus $39 $169 $209 su7 $204 Common NIM (2%)(TEY)(Non-GAAP) 310% «3.03% «3.15% 3K «337% BSH «375% ROAA (%) 062% «064% «= O61% =H COST 1.08%
Slide 14: Strong Commercial Loan Growth
STRONG COMMERCIAL LOAN GROWTH + 35% organic loan growth from 7s to 2016 (excludes Community State Bank) + Commercial lending® represents more than 87% of the portfolio loan growth supplemented by “petition of Community National Bancorporation-Waterloo + 2016 loan growth supplemented by sequin of Com
Slide 15: m2 Lease Funds LLC Overview
m2 LEASE FUNDS LLC OVERVIEW + National equipment leasing platform Lease Asset Generation + Focus includes commercial equipment! building and construction machinery 2 and ass ical equipment, office 8 equipment (computer hardware and ow fears), and vehicles classified as heavy equipment $150 + High yi
Slide 16: Asset Quality Overview
ASSET QUALITY OVERVIEW Classified Loans ($M) & NPAs / Assets Nonperforming Assets Composition — 2016 $70 25% 2.06% 3.59% $60 2.0% ther Real ate Owned & Rep. — osm 21.24% ponnevers $90 15% ‘ionacrslLoas/iases 51.65% $40 074%. 1.0% $27.0M rouble Dat Restrctres- ezrg-2350% $30 05% 1 Accring Loanelantes
Slide 17: Evolution of Funding Base
EVOLUTION OF FUNDING BASE Average Funding Base - 2010 Average Funding Base — 2016 Borrowings 11.7% Borrowings 334% Noninerest Gearing ‘oninteee earng Deport 13.7% Deporte 26.1% $2,541M Interest Bearing Demand Interest Bearing Oemand Deport 25.3% Deportsa3.0% ‘Time Deposits 27.6% ‘Time Deposits 172%
Slide 18: Attractive Revenue Mix & Growth Trend
ATTRACTIVE REVENUE MIX & GROWTH TREND Continued Strong Top Line Revenue Growth Trends ($M) CAGR From 2010 - 2016: 11.03% Strong fee income streams provi cee and complement Key Differentiators: + Wealth Management ($2.88 in AUM) rrespondent banking at relationships) ‘SBA / USDA guaranteed loan sales
Slide 19: Improving Returns for Common Shareholders
IMPROVING RETURNS FOR COMMON SHAREHOLDERS Net Income to Common Shareholders ($M) 2011 2012 2013 2014 2015 2016 pine
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% (73% as of 12/31/16) + Continued focus on growing core deposits to maintain reliance on wholesale funding to less than 15% of asse
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 JOHN R. ENGELBRECHT, MBA DANA L. NICHOLS. President and Cit Executive Ofer President and Chief Executive Officer, Executive Vice President, Chief Credit Officer, 39 Years in Banking /Financal Services m2 Lease Funds, LLC 34 Years in Banking /Financ
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 Quad Cities Highlights “The Rock island Arsenal is the largest govemiment-owned miltary weapons ‘manufacturing arsenal in the United States ‘Arconi (frmerty Alcoa) (Quad Ciies) isthe word's premier aerospace supply plant the : hhub of Alcoa's $88 aerospace business. Announced
Slide 27: Cedar Rapids Bank & Trust
CEDAR RAPIDS BANK & TRUST Cedar ‘Rapids H Highlights {or Rockwel Colin for Aegon USA Larry J. Helling, President & CEO Sia > year mr nto cc Assets: $913 Million* (as of 12/31/16) Dobie Tree Herel Population: 268,53 Baan in down, competd a 201g | ost Sov MMwork nenduanere Market Deposits: $5.5 Billio
Slide 28: Rockford Bank & Trust
ROCKFORD BANK & TRUST ROCKFORD Rockford Highlights open in 2018 [AAR (largest aircraft maintenance company in North America, and thir largest inthe worl) opened ‘2 new S41NIM facility at Chicago Recktord Airport generating obs fr 500 people ). Budd, President & CEO Assets: $391 we (as of 12/31/16) P
Slide 29: Community Bank & Trust
COMMUNITY BANK & TRUST BANK@ Re TRUST nacay J. Bentley, President & CEO its: $146 Million (as of 12/31/16) 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
Slide 30: Community State Bank
COMMUNITY STATE BANK Ankeny Highlights Community state bank Ronald M. Nagel, President & CEO For the past 10 years, Ankeny has grown by an average of § residens per day. More people are moving tay fan ay a common no From 2005 to 2085, the population has increased approx. 5 Ranked Got Smet Cty nA (20
Slide 31: Group Operations
Group Operations Tr y — Beth Grabin and John Oake: + Compliance — Peggy Bishop + Customer Service/Item Processing — Kathy Francque + Funds Management — John McEvoy + 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 Year ended Orcember 3, (5 inthousonds, except per shore dete) 2010 201 Tangible Common Equity $ aszs72$ © maass$—taoass-$ «A777 «-$ «= maor9 $225,886 § «(860m ec: Prfored e228 63.386 53,168 29804 . 5
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