qcbt retreat

Wel

com

e!W

elco

me!

Thank You!Thank You! 20082008

2

Doug Hultquist Doug Hultquist

3

($ 2.0)

$ .0

$ 2.0

$ 4.0

$ 6.0

$ 8.0

$ 10.0

Dec-93

Dec-94

Dec-95

Dec-96

Dec-97

Dec-9

8

Dec-9

9

Dec-0

0

Dec-0

1

Dec-0

2

Dec-03

Dec-04

Dec-05

Dec-06

Dec-0

7

In Millions of Dollars

Net Income (Incl. M2)Net Income (Incl. M2)

$2.2 million improvement

in 2007

4

2007 Key Improvements2007 Key Improvements

• Improvements in Net Interest Income Improvements in Net Interest Income (the difference between our Interest (the difference between our Interest Income and Interest Expense) and Net Income and Interest Expense) and Net Interest MarginInterest Margin

• Improvements in Cost Control Improvements in Cost Control (managing our non-interest expenses)(managing our non-interest expenses)

• Improvements in Non-Interest Income Improvements in Non-Interest Income (service charges on deposits, trust (service charges on deposits, trust activities and nontraditional product activities and nontraditional product sales)sales)

5

• Improved Net Interest Income Improved Net Interest Income (the difference between our (the difference between our Interest Income and Interest Interest Income and Interest Expense) and Net Interest Expense) and Net Interest MarginMargin

2007 Key Improvements

6

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

Dec-03 Dec-04 Dec-05 Dec-06 Dec-07

Interest Income Interest Expense Net Interest Margin

Percent 14 basis point improvement in NIM % in

2007

Net Interest Margin (as a % of average assets)

7

$17,500

$18,500

$19,500

$20,500

$21,500

$22,500

$23,500

Dec-03 Dec-04 Dec-05 Dec-06 Dec-07

In Thousands of Dollars

$2.1 million improvement

in 2007

Net Interest Income Dollars

8

2.00%

2.20%

2.40%

2.60%

2.80%

3.00%

3.20%

3.40%

3.60%

3.80%

4.00%

Jun-94

Jun-95

Jun-96

Jun-97

Jun-98

Jun-99

Jun-00

Jun-01

Jun-02

Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

Percent

Consolidated Net Interest Margin

9

QCBT 2007 Key ImprovementsQCBT 2007 Key Improvements

• Improvements in Cost Control Improvements in Cost Control (managing our non-interest (managing our non-interest expenses)expenses)

2007 Key Improvements

10

0.30%

0.50%0.70%

0.90%1.10%

1.30%

1.50%1.70%

1.90%

Dec-03 Dec-04 Dec-05 Dec-06 Dec-07

Personnel Expense Occupancy Expense

All Other Operating Expense

Percent

Improvements in all three

areas in 2007

Non-interest expense (as a % of average assets)

11

• Improvements in Non-Interest Income Improvements in Non-Interest Income (services charges on deposits, trust (services charges on deposits, trust activities and nontraditional product activities and nontraditional product sales)sales)

2007 Key Improvements

12

0.00%

0.10%0.20%

0.30%0.40%

0.50%

0.60%0.70%

0.80%

Dec-03 Dec-04 Dec-05 Dec-06 Dec-07

Service Charges on Deposits Other Fee Income

All Other Non-Interest Income

Percent

Improvements in SC & Other Fee areas in

2007

Non-interest income (as a % of average assets)

13

55.00%

57.00%

59.00%

61.00%

63.00%

65.00%

67.00%

69.00%

Dec-03 Dec-04 Dec-05 Dec-06 Dec-07

Percent

Non-Interest Expense/Non-Interest Expense/Net Interest Income + Non-Interest IncomeNet Interest Income + Non-Interest Income

6 basis point improvement

in 2007

Efficiency Ratio

14

$0$100$200$300$400$500$600$700$800$900

$1,000$1,100$1,200$1,300$1,400$1,500$1,600

Dec-93

Dec-94

Dec-95

Dec-96

Dec-97

Dec-98

Dec-99

Dec-00

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

In Millions of Dollars

Total Consolidated Assets

15

($ 2.0)

($ 1.0)

$ .0

$ 1.0

$ 2.0

$ 3.0

$ 4.0

$ 5.0

$ 6.0

$ 7.0

Dec-93

Dec-94

Dec-95

Dec-96

Dec-97

Dec-98

Dec-99

Dec-00

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

In Millions of Dollars

Consolidated Net Income

16

($2.00)

($1.50)

($1.00)

($0.50)

$0.00

$0.50

$1.00

$1.50

Dec-93

Dec-94

Dec-95

Dec-96

Dec-97

Dec-98

Dec-99

Dec-00

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

Consolidated Earnings per Common Share

17

$-$2.00$4.00$6.00$8.00

$10.00$12.00$14.00$16.00$18.00$20.00$22.00

Dec

-93

Jun-9

4

Dec

-94

Jun-

95

Dec

-95

Jun-9

6

Dec

-96

Jun-

97

Dec

-97

Jun-

98

Dec

-98

Jun-

99

Dec

-99

Jun-

00

Dec

-00

Jun-

01

Dec

-01

Jun-0

2

Dec

-02

Jun-0

3

Dec

-03

Jun-

04

Dec

-04

Jun-

05

Dec

-05

Jun-0

6

Dec

-06

Jun-

07

Dec

-07

Closing Stock Price

18

$0

$20

$40

$60

$80

$100

Dec-93

Dec-94

Dec-95

Dec-96

Dec-97

Dec-98

Dec-99

Dec-00

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

Book Value of Stock Fair Market Value

In Millions of Dollars

Book Value of Common Stock vs. Fair Market Value

19

• DepositsDeposits

•DepositsDeposits

•DEPOSITSDEPOSITS

Key Focus Areas

20

0

50,000

100,000

150,000

200,000

250,000

Dec-03 Dec-04 Dec-05 Dec-06 Dec-07

Demand Deposits NOW, MMDA & Savings

Time Deposits < $100,000 Time Deposits < $100,000

In Thousands of Dollars

Deposit Mix & Growth

21

$0

$100

$200$300

$400

$500

$600

$700$800

$900

$1,000

Dec-93

Dec-94

Dec-95

Dec-96

Dec-97

Dec-98

Dec-99

Dec-00

Dec-01

Dec-02

Dec-03

Dec-04

Dec-05

Dec-06

Dec-07

In Millions of Dollars

Total Consolidated Deposits

20082008

The The Year Year of theof the

D

E

P

O

S

I

T

23

John Anderson John Anderson

Polly wants Deposits!Polly wants Deposits!

Polly wants REFERRALS!Polly wants REFERRALS!

Teller Appreciation WeekTeller Appreciation Week

Brady StreetBrady Street

Five PointsFive Points

UticaUtica

MolineMoline

Middle RoadMiddle Road

The best people…. The best people…. building the best relationships!building the best relationships!

Mr.

M

r. L

ou

ieL

ou

ie G

rava

nce

Gra

van

ce