German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — Raymond James U.S. Bank Conference 2024
37 slides from German American Bancorp's conference presentation, Sep 4, 2024
Slide 1: Raymond James U.S. Bank Conference
Symbol: GABC September 4 - 5, 2024 Raymond James U.S. Bank Conference German American Scan for electronic presentation
Slide 2: Presented By
Presented By D. Neil Dauby , Chairman and Chief Executive Officer (812) 482 - 0707 neil.dauby@germanamerican.com Bradley M. Rust, President and CFO (812) 482 - 0718 brad.rust@germanamerican.com 2
Slide 3: Cautionary Note Regarding Forward Looking Statements
3 Cautionary Note Regarding Forward Looking Statements This presentation contains forward - looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Sec tion 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, a
Slide 4: Additional Information and Where to Find It
Additional Information and Where to Find It The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy any securities o r a solicitation of any proxy vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer,
Slide 5: Who We Are
Indiana & Kentucky Community - focused Financial Services Organization Who We Are 5 $6.2 Billion Total Banking Assets $3.2 Billion Investment & Trust Assets Under Management ~850 Team Members 74 Banking Offices in Indiana & Kentucky
Slide 6: Our Strategic Position
▪ Out - perform and “out - local” competitors ▪ Build long - term, multi - line client relationships based on trust and customer service excellence ▪ Deliver the right balance of high touch/high tech customer experience ▪ Increase non - interest income ▪ Excel at both organic and targeted M&A growth
Slide 7: History of Superior Financial Performance
History of Superior Financial Performance 7 Bank Director Magazine - Top 20 of 300 Largest Publicly Traded Banks for 2017 & 2018 Newsweek Best Banks in America (Indiana) 2020, 2021 & 2024 2022 S&P Global Top 20 Best Performing Banks between $3 and $10 Billion 2023 S&P Global Top 30 Best Performing B
Slide 8: Financial Trends
FINANCIAL TRENDS 8
Slide 9: Total Assets
Total Assets 9 $4,398 $4,978 $5,609 $6,156 $6,152 $6,217 1.43% 1.32% 1.57% 1.26% 1.43% 1.28% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 06/30/24 (dollars in millions, except per share amount) Return on Average Assets * 2022 was impacted by acquisition - related expenses and the Day 1 provision for
Slide 10: Loan Portfolio Trends
Loan Portfolio Trends 10 $3,077 $3,088 $3,004 $3,785 $3,971 $4,037 80% 82% 81% 81% 81% 80% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 06/30/24 Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total Loans (dollars in millions) 65.00% 58.50% 56.62% 52.07% 56.26% 49.17% 44.
Slide 11: Diversified Loan Portfolio
Diversified Loan Portfolio 11 Construction & Development Loans $ 350.3 million 9% Agricultural Loans $ 423.7 million 11% Commercial & Industrial Loans $ 621.3 million 15% Commerical Real Estate Owner Occupied $ 543.2 million 13% Commercial Real Estate Non - Owner Occupied $ 1,016.2 million 25% Multi
Slide 12: Non-Performing Assets to Total Assets
Non - Performing Assets to Total Assets 12 0.33% 0.44% 0.26% 0.23% 0.15% 0.12% 0.45% 0.52% 0.34% 0.29% 0.37% 0.42% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 06/30/24 GABC Peer Group *Peer Group (St. Louis Federal Reserve District BHC with Total Assets between $3 and $10 billion) Data as of 3/31/2
Slide 13: Total Deposits
Total Deposits 13 $3,430 $4,107 $4,744 $5,350 $5,253 $5,314 82% 88% 93% 92% 85% 83% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 06/30/24 Non-Maturity Deposit Accounts as % of Total Deposits (dollars in millions)
Slide 14: Total Deposit Composition
14 Commercial $1,579 million 30% Public Fund $1,207 million 23% Retail $2,528 million 47% Non - Interest Bearing Demand $1,448 million 27% Interest Bearing Demand, Savings & Money Market $2,985 million 56% Time Deposits > $100,000 $533 million 10% Time Deposits < $100,000 $348 million 7% Total Depos
Slide 15: Total Shareholders' Equity
$574 $625 $668 $558 $664 $688 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 06/30/24 (dollars in millions) Total Shareholders' Equity 15
Slide 16: Regulatory Capital Levels
Regulatory Capital Levels 16 16.78% 15.19% 14.49% 11.92% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% Total Capital (to Risk Weighted Assets) Tier 1 (Core) Capital (to Risk Weighted Assets) Common Tier 1 (CET 1) Capital Ratio (to Risk Weighted Assets) Tier 1 Capital (to Average A
Slide 17: Net Interest Income
Net Interest Income 17 $145,225 $155,243 $160,830 $200,584 $190,433 $97,267 $90,965 3.92% 3.63% 3.31% 3.45% 3.58% 3.66% 3.34% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 06/30/23 06/30/24 Net Interest Margin (Tax-Equivalent) (dollars in thousands)
Slide 18: Non-Interest Income
Non - Interest Income 18 As of December 31, 2023 Net Gains on Sales of Loans $2.4 million 4% Insurance Revenues $9.6 million 16% Service Charges on Deposit Accounts $11.5 million 19% Wealth Management $11.7 million 19% Interchange Fee Income $17.5 million 29% Other Operating Income $7.6 million 13%
Slide 19: Non-Interest Expense
Non - Interest Expense 19 $114,162 $117,123 $124,007 $154,191 $144,497 $73,342 $74,412 57.4% 54.3% 54.4% 56.6% 55.1% 55.1% 44.8% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 YTD 6/30/2023 YTD 6/30/2024 Efficiency Ratio * 2022 was impacted by acquisition - related expenses for the CUB transaction tha
Slide 20: Net Income & Earnings Per Share
Net Income & Earnings Per Share 20 $59,222 $62,210 $84,137 $81,825 $85,888 $42,930 $39,552 $2.29 $2.34 $3.17 $2.78 $2.91 $1.45 $1.33 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 06/30/23 06/30/24 Earnings Per Share * 2022 was impacted by acquisition - related expenses and the Day 1 provision for cre
Slide 21: Why Invest in GABC? EPS Growth
Why Invest in GABC? 21 $1.07 $1.27 $1.32 $1.43 $1.51 $1.57 $1.77 $1.99 $2.29 $2.34 $3.17 $2.78 $2.91 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 As of 12/31 for years shown * Earnings Per Share adjusted for 3 - for - 2 stock split completed in 2017 ** 2022 was impacted by acquis
Slide 22: Why Invest in GABC? Dividends
Why Invest in GABC? 22 $0.40 $0.43 $0.45 $0.48 $0.52 $0.60 $0.68 $0.76 $0.84 $0.92 $1.00 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 *Dividends per share adjusted for 3 - for - 2 stock split completed in 2017 As of 12/31 for years shown * * * *
Slide 23: Why Invest in GABC?
Why Invest in GABC? 23 Diversified Footprint of Rural, Suburban, and Urban Markets Providing a Strong Deposit Franchise Base Along with Significant Organic Growth Opportunities Existing Platform for Continuous Improvement and Operating Efficiency Infrastructure in Place for Perpetuating Ongoing EPS
Slide 24: German American Bank Regional Banking Structure
German American Bank Regional Banking Structure 24
Slide 25: German American Regional Structure
German American Regional Structure Current Regional Structure: 5 Regions & 6 Regions (future) • Regional President • Market President • Regional Credit Officer • Regional Senior Retail Officer • Market Senior Retail Officers 25
Slide 26: Heartland Merger Highlights
Heartland Merger Highlights Unlocking Opportunity in Midwest Growth Markets v Enhances scale (over $8B in combined assets) and diversifies footprint into two | . of the most attractive growth markets in the Midwest pa . ¥ GABC’s deposit strength and combined scale will accelerate future growth @ Gas
Slide 27: Heartland BancCorp: A High Performing Ohio Banking Franchise
Heartland BancCorp (OTCQX:HLAN) A High Performing Ohio Banking Franchise f Key Franchise & Financial Highlights } 7 am ear Ss aR 3 oseware Marysvite e Overview Prove vm oe © Chairman, President & CEO G. Scott McComb Tey é vewn @ Headquarters Whitehall, OH New Castle Spingtiod & Pataskala Lo Ticker H
Slide 28: Combined Transactions Drive Peer Leading Returns
Combined Transactions Drive Peer Leading Returns 2= Pro Forma Financial Impact vs Midwest Banks $4B - $10B in Assets! Median: 1. "| 2025E ROAA 0.5% = = Forma So # 2025E ROATCE Median: 12% . ] conn HEATH EAEATTEEA HEAT = = Forma THE STRENGTH Together —ssxssrcptsiaromarese, inte 40-2108 28 OF S ‘and s
Slide 29: Entry Into Attractive Columbus Market
Demographically Accretive with Entry Biiaaaerccars sen Into Attractive Columbus Market Columbus is Home to... 35% Y Corporate headquarters of 16 Fortune 1000 companies Y The Ohio State University y¥ Ayoung (median age 33) and highly educated population Intel Investment in Columbus: Y Largest private
Slide 30: Pro Forma Bank-Level Deposit Composition
Pro Forma Bank-Level Deposit Composition ca HEARTLAND BancCorp. HABE German American Bancorp, Inc. GABE German American Bancorp, Inc. (Pro Forma) Jumbo Time Jumbo Time Noninterest- Bearing Noninterest- Bearing 27% Interest- Bearing M% Q2 '24 Cost of Total Deposits: 1.76% Q2 '24 Cost of Total Deposit
Slide 31: Pro Forma Bank-Level Loan Composition
Pro Forma Bank-Level Loan Composition = = Ga Geren Arerican Bancp, Inc. hh Gy Geren Ameticn Bancorp, Inc HEARTLAND (Pro Forma) BancCorp Consumer Consumer Consumer Multi 5% Q2 24 Yield on Loans: 5.89% Q2 '24 Yield on Loans: 6.10% Q2 ‘24 Yield on Loans: 5.95% Loans / Deposits: 76% Loans / Deposits: 94
Slide 32: Newly Combined Organization
Newly Combined Organization 32 32
Slide 33: Combined Merger of GABC & HLAN: Strategically Compelling
Combined Merger of GABC & HLAN Strategically Compelling Transaction • Significant Cultural Alignment • Boost GABC’s strong geographic footprint with two of the strongest MSA markets in the Midwest to drive company’s economic engine of long - term revenue growth – Strong brand/reputation in Columbus
Slide 34: Combined Merger of GABC & HLAN: Growth Opportunities
Combined Merger of GABC & HLAN Strategically Compelling Transaction • Opportunity to grow Columbus/Cincinnati Markets by leveraging GABC’s larger - liquid balance sheet • Opportunity to create strategic operational hub system for future • Opportunity to expand C&I and Treasury Management services to
Slide 35: Combined Merger of GABC & HLAN: Talent and Scale
Combined Merger of GABC & HLAN Strategically Compelling Transaction • Opportunity to access broader employee talent pool • Opportunity to drive organizational scale for efficiency, tech investment, absorption of regulatory cost burden, etc. • Opportunity for HLAN employees to have access to training
Slide 36: Review of Our Recent Strategic Transactions
Review of Our Recent Strategic Transactions Strategically Compelling and Financially Attractive German American | Insurance (GAI) Asset Sale Securities Portfolio Repositioning Merger With ——— HEARTLAND Combined Pro Forma Impact v Monetized at attractive pricing in an all cash deal ¥ Subsequently sol
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