2

FORWARD-LOOKING STATEMENTS

Special Note Concerning Forward-LookingStatements. 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 with respect to the financial condition, results of operations, plans, objectives, future performance and business of the Company. Forward-looking statements, which may be based upon beliefs, expectations and assumptions of the Company's management and on information currently available to management, are generally identifiable by the use of words such as "believe," "expect," "anticipate," "bode", "predict," "suggest," "project", "appear," "plan," "intend," "estimate," "annualize," "may," "will," "would," "could," "should," "likely," "might," "potential," "continue," "annualized," "target," "outlook," as well as the negative forms of those words, or other similar expressions. Additionally, all statements in this document, including forward-looking statements, speak only as of the date they are made, and the Company undertakes no obligation to update any statement in light of new information or future events.

A number of factors, many of which are beyond the ability of the Company to control or predict, could cause actual results to differ materially from those in its forward- looking statements. These factors include, among others, the following: (i) the strength of the local, state, national and international economies(including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics (including the COVID-19 pandemic in the United States), acts of war or other threats thereof (including the Israeli-Palestinian conflict and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB or the PCAOB; (iv) changes in local, state and federal laws, regulations and governmental policies concerning the Company's general business and any changes in response to the recent failures of other banks; (v) changes in interest rates and prepayment rates of the Company's assets (including the impact of LIBOR phase-out and the recent potential additional rate increases by the Federal Reserve); (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions and "fintech" companies, and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversity their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xixi) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission.

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 adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or statement of cash flows (or equivalent statements) of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. In this regard, GAAP refers to generally accepted accounting principles in the United States. Pursuant to the requirement of Regulation G, the Company has provided reconciliations within the slides, as necessary, of the non-GAAP financial measure to the most directly comparable GAAP financial measure. For more details on the Company's non-GAAP measures, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

3

QCR Holdings, Inc. (NASDAQ: QCRH)

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 growing fee revenue streams with Wealth Management, Correspondent Banking, and Capital Markets business lines

Track Record of Successfully Integrating Acquisitions

  • Capacity for future M&A and considered acquirer of choice

Prudent Risk Management

  • Strong and proven credit culture
  • Right people, infrastructure and balance sheet to sustain performance

4

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.

Financial Metric

12/31/2018

9/30/2023

CAGR

Adjusted Earnings Per Share

$3.08

$6.46*

16.9%

Tangible Book Value Per Share

$24.04

$40.33

11.5%

Loans **

$3.3B

$6.6B

15.5%

Core Deposits **

$3.3B

$6.2B

14.5%

Assets Under Management **

$3.4B

$4.9B

8.0%

CAGR = Compound Annualized Growth Rate. *Annualized ** Data excluding Rockford Bank & Trust

5

How is QCRH Unique?

Diversified Business Lines Drive Outstanding Results

Built on top of our traditional banking business, we have three complementary business lines that diversify our earnings power with exceptional results.

Our Complementary High-Performing Business Lines

Traditional

Specialty Finance

Group

  • Municipal and tax credit lending
  • Significant floating to fixed rate swap revenue in tax credit lending
  • Capital markets revenue averaging $14MM per quarter for last two years

Wealth

Correspondent

Management

Banking

•

Fiduciary services

•

Competitive deposit

•

Investment

products with

approximately

management

$858MM in total

services

liquidity

Financial planning

•

•

Safekeeping and

•

Brokerage services

cash management

services

•

9/30/23 AUM: $4.9B

•

181 correspondent

banking

relationships

•

Bank stock loans

Banking

  • Consumer & retail banking
  • Complex commercial lending
  • Sophisticated treasury management solutions
  • Customized private banking services
  • Small ticket lease financing (m2 Equipment Finance)

6

Specialty Finance Group (SFG)

ProvidingA ComplexMunicipal andndTaxProfitableCredit FinancingBusinessSolutions

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 economic cycles
  • Planned strategic use of securitization for long-term sustainability and growth

Fee Income Growth ($MM)

$80

$74.8

$60

$61.0

$55.1

$41.3

$40

$28.3

$20

$10.8

$0

2019

2020

2021

2022

9/ 30/23

2018

Loan and Bond Growth Breakdown ($B)

$4,000

.7%

-Q3'23:

29

$3.1

2018

$3,000

from

CAGR

$2.6

$2.2

$2,000

$1.6

$1.2

$1,000 $0.9

$0

2018

2019

2020

2021

2022

9/ 30/23

Low Income Housing Tax Credit Loans

Historic Tax Credit Loans

Municipal Bonds and Loans

Other

7

Low Income Housing Tax Credit Loans

Rent

QCRH

TAX CREDIT

EQUITY

(LENDER)

INVESTORS

Loan Payments

Loan

Equity Investment

Tax Credits

BORROWER /

LOW INCOME HOUSING

PROJECT

STRONG BORROWERS

  • Experienced low-income housing developers
  • Tax credit investors are primarily other banks and corporate investors

HIGH-QUALITY LOANS

  • Very strong Loan-To-Values
  • Very low historical industrywide defaults
  • 15-yearloans, utilizing back-to-back interest rate swaps

OVERALL POSITIVE IMPACT

  • Helps QCRH manage interest rate risk
  • QCRH recognizes capital markets revenue
  • Increases the availability of much needed affordable housing
  • Significant contributor to CRA efforts

8

A Broad Scope of Wealth Management Services

Our wealth management structure and extensive scope of services cater to our client needs.

  • Diverse wealth management solutions serving a wide range of clients
  • Over 1,800 new relationships added over the last five years

Assets Under Management ($B)(1)

.0%

-Q3'23:

8

$6

from

2018

$5.4

CAGR

$4.6

$4.9

$4.4

$1.2

$4.1

$1.1

$4

$1.0

$1.0

$3.4

$1.0

$0.9

$2

$4.2

$3.1

$3.4

$3.6

$3.8

$2.5

$0

2019

2020

2021

2022

9/ 30/23

2018

Number of New Client Relationships Added

502

273

206

321

340

220

Trust/Inv Mgmt

Brokerage/RIA

Revenue ($M) (1)(2)

6.3%

$18

-

Q3'23:

from

2018

CAGR

$15.3

$15.2

$14.5

$12.6

$12.0

$12

$11.4

$6

$0

2018

2019

2020

2021

2022

9/ 30/23

(1) All data excludes Bates and RB&T. (2) Annualized

9

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-sizedmetros 200K-500K population MSAs
  • Strong demographics & highly educated workforce drive steady growth

Entity

States/Region

# Locations

Deposits

Market Share

Quad City Bank & Trust

Iowa/Illinois - Quad Cities

5

$2.0B

#1

Cedar Rapids Bank & Trust *

Iowa -Cedar Rapids/Cedar Valley

8

$1.7B

#1

Guaranty Bank

Missouri - Southwest Region

14

$1.7B

#3

Community State Bank

Iowa - Des Moines/ Ankeny

9

$1.1B

#7

Location and deposit data as of 9/30/23. Market share as of 6/30/23

10

* Cedar Rapids Bank & Trust includes Community Bank & Trust in the Cedar Valley.

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Disclaimer

QCR Holdings Inc. published this content on 02 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 November 2023 14:54:05 UTC.