German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — Raymond James U.S. Bank Conference 2018
31 slides from German American Bancorp's conference presentation, Sep 4, 2018
Slide 1: Raymond James U.S. Bank Conference
Filed by German American Bancorp, Inc. pursuant to Rule 425 Under the Securities Act of 1933 Subject Company: First Security, Inc. Commission Securities Exchange Act File No: 333-225668 German American Symbol: GABC September 5, 2018 Raymond James U.S. Bank Conference
Slide 2: Presented By
Presented By Mark A. Schroeder, Chairman and CEO (812) 482-0701 mark.schroeder@germanamerican.com Bradley M. Rust, Executive VP and CFO (812) 482-0718 brad.rust@germanamerican.com 2
Slide 3: Cautionary Note Regarding Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS When used in this presentation and our oral statements, the words or phrases “believe,” “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “plans,” or similar expressions are intended to identify “fo
Slide 4: Who We Are
Who We Are Southern Indiana Community- focused Financial Services Organization • Banking, Insurance, Investments & Trust • $3.3 Billion Total Banking Assets • $1.4 Billion Investment and Trust Assets Under Management • $60 Million Annual Insurance Premiums • 650+ FTEs • 58 Branch Offices 4
Slide 5: Diversified Economic Base
Diversified Economic Base Regional Education & Health Care Life Sciences & Technology Agriculture, Manufacturing & Logistics MAJOR INDIANA EMPLOYERS: Education Manufacturing & Logistics Life Sciences & Technology Indiana University Aisin U.S.A. MFG, Inc. Baxter BioPharma Solutions University of Sout
Slide 6: Indiana County Unemployment Rates
Indiana County Unemployment Rates Non-Seasonally Adjusted | source: owo, Local area Unemployment Statistics May 2010 Indiana Non-Seasonally Agjusted Rate 9.7% Indiana Seasonally feta ate 16% IS Non-Seasonally ajusted Rote 93% Non-Seasonally Adjusted Unemployment Rate Lower Than US. Rate mm Same As U
Slide 7: Kentucky County Unemployment Rates
Kentucky County Unemployment Rates Non-Seasonally Adjusted Non-Seasonally Adjusted Unemployment Rate a 5 and Workforce: mm Lower Than U.S. Rate Statistics, Kentucky Education and Workforce Development Cabinet mm Same As US. Rate lm Higher Than US. Rate July 2018 Kentucky Non-Seasonally Adjusted Rate
Slide 8: Capitalize upon Market Strength & Growth: Indiana Small MSA Market Expansion
Capitalize upon Market Strength & Growth Indiana Small MSA Market Expansion Total Market GABC Deposit Market Share # of Market Deposits Market Share*** Position Branches Heritage Markets* $ 4,992,622 32% #1 31 Evansville/Newburgh $ 4,198,662 13% #3 7 Bloomington $ 2,399,939 8% #4 3 Columbus $ 1,204,
Slide 9: Capitalize upon Market Strength & Growth: Kentucky Small MSA Market Expansion
Capitalize upon Market Strength & Growth Kentucky Small MSA Market Expansion Total Market GABC Deposit Market Share # of Market Deposits Market Share* Position* Branches* Owensboro $ 2,674,220 7% #5 2 Bowling Green $ 2,336,068 4% #9 3 Lexington $ 7,011,274 .4% #19 2 Total Kentucky $ 12,021,562 Growt
Slide 10: Capitalize upon Market Strength & Growth: Heritage Markets
Capitalize upon Market Strength & Growth *Heritage Markets 2017 2007** 2017 # of (millions) Deposits Share Deposits Share Increase Offices 1 German American $ 1,612 32.3% $ 1,129 26.0% 42.8% 31 2 Old National Bank $ 1,063 21.3% $ 1,354 31.2% - 21.5% 16 3 Fifth Third Bank $ 456 9.1% $ 452 10.4% 0.9%
Slide 11: Capitalize upon Market Strength & Growth: Evansville/Newburgh Markets
Capitalize upon Market Strength & Growth Evansville/Newburgh Markets 2017* 2007** 2017 # of (millions) Deposits Share Deposits Share Increase Offices 1 Old National Bank $ 1,690 40.3% $ 2,228 53.8% -24.1% 14 2 Fifth Third Bank $ 1,208 28.8% $ 1,184 28.6% 2.0% 12 3 German American $ 535 12.7% $ 271 6
Slide 12: History of Superior Financial Performance
History of Superior Financial Performance Eight Years of Consecutive Record Earnings Performance Double-Digit Return on Equity for Past 13 Consecutive Fiscal Years Bank Director Magazine - Bank Performance Scorecard • Top 20 National Ranking for Past 4 Years (2015 – 2018) for $1 - $5 billion Publicl
Slide 13: Financial Trends
Financial Trends oP ess
Slide 14: Net Income & Earnings Per Share
Net Income & Earnings Per Share Earnings Per Share* $45,000 $40,676 $40,000 $35,184 $35,000 $30,064 $30,000 $28,344 $25,413 $25,000 $22,910 $19,395 $20,000 $1.77 $1.57 $1.43 $1.51 $15,000 $1.32 $1.00 $10,000 $0.85 $5,000 $- 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 06/30/17 06/30/18 YTD YTD (Doll
Slide 15: Total Assets and Annualized Return on Assets
Total Assets Annualized Return on Assets $3,500 $3,345 $3,144 $2,956 $3,000 $2,500 $2,374 $2,164 $2,237 $2,000 $1,500 1.44% 1.33% 1.35% 1.25% 1.31% 1.24% $1,000 $500 $- 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 06/30/18 (Dollars in Millions) 15
Slide 16: Total Loans, Net of Unearned Income
Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total Loans $2,500 $2,319 $2,250 $2,142 $1,990 $2,000 $1,750 $1,564 $1,448 $1,500 $1,382 $1,250 $1,000 $750 81% 81% 82% 81% 81% 80% $500 $250 $- 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 06/30/18 (Dollars in Millions) 16
Slide 17: Loan Portfolio Composition
Loan Portfolio Composition As of June 30, 2018 Total Loans $2,318.5 million Residential Mortgage Loans, $ 222.1 million, 10% Construction & Development Loans, $ 140.5 million, 6% Home Equity Loans, Agricultural Loans, $ 169.4 million, 7% $ 351.6 million, 15% Consumer Loans, $ 52.0 million, 2% Multi-
Slide 18: Non-Performing Assets to Total Assets
Non-Performing Assets to Total Assets 2.50% 2.00% 1.45% 1.50% 1.04% 1.00% 0.84% 0.76% 0.48% 0.47%* 0.50% 0.44% 0.29% 0.38% 0.15% 0.14% 0.28% 0.00% 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 06/30/18 GABC Peer Group * Peer Group Information as of 3/31/18 18
Slide 19: Total Deposits
Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits $3,000 $2,601 $2,484 $2,500 $2,350 $2,000 $1,812 $1,780 $1,826 $1,500 86% 83% 84% 84% 81% 81% $1,000 $500 $- 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 06/30/18 (Dollars in Millions) 19
Slide 20: Total Deposit Composition
Total Deposit Composition as of June 30, 2018 Total Deposits $2,601.4 million Non-Interest Bearing Demand, $629.7 million, 24% Interest Bearing Demand, Savings & Money Market, $1,611.6 million, 62% Cost of Funds 2013 0.37% 2014 0.30% 2015 0.28% Time Deposits, $360.1 million, 14% 2016 0.32% 2017 0.40
Slide 21: Total Shareholders' Equity and Return on Equity
Total Shareholders’ Equity Annualized Return on Equity $400 $365 $371 $350 $330 $300 $252 $250 $229 $200 $200 $150 13.40% 13.21% 12.47% 12.57% 10.94% 11.59% $100 $50 $- 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 06/30/18 (Dollars in Millions) 21
Slide 22: Net Interest Income and Net Interest Margin
Net Interest Income (Tax Equivalent) Net Interest Margin $120,000 $105,057 $99,470 $100,000 $79,072 $80,000 $76,991 $70,319 $60,000 $54,403 $52,099 3.76% 3.75% 3.76% 3.70% 3.82% 3.67% $40,000 3.71% $20,000 $- 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 06/30/2017 06/30/2018 YTD YTD (Dollars in Thou
Slide 23: Non-Interest Income
Non-Interest Income Non-Interest Income as % of Total Revenue $35,000 $32,013 $31,854 $30,000 $27,444 $25,000 $23,615 $23,937 $20,000 $18,374 $15,985 26% $15,000 25% 25% 24% 24% 23% 23% $10,000 $5,000 $- 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 06/30/17 06/30/18 YTD YTD (Dollars in Thousands) 23
Slide 24: Non-Interest Expense and Efficiency Ratio
Non-Interest Expense Efficiency Ratio $90,000 $80,000 $76,587 $77,803 $70,000 $61,326 $57,713 $60,000 $54,905 $50,000 $42,163 $38,032 $40,000 58.5% 58.3% $30,000 57.2% 57.6% 56.8% 57.9% $20,000 55.9% $10,000 $- 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 06/30/17 06/30/18 YTD YTD (Dollars in Thousa
Slide 25: Net Income & Earnings Per Share
Net Income & Earnings Per Share Earnings Per Share* $45,000 $40,676 $40,000 $35,184 $35,000 $30,064 $30,000 $28,344 $25,413 $25,000 $22,910 $19,395 $20,000 $1.77 $1.57 $1.43 $1.51 $15,000 $1.32 $1.00 $10,000 $0.85 $5,000 $- 12/31/13 12/31/14 12/31/15 12/31/16 12/31/17 06/30/17 06/30/18 YTD YTD (Doll
Slide 26: Why Invest in GABC?
Why Invest in GABC? on nee ' 2 fen
Slide 27: Why Invest in GABC? Earnings Per Share Growth
Why Invest in GABC? * GABC Earnings Per Share Growth $1.77 $1.51 $1.57 $1.43 $1.27 $1.32 $1.07 $0.81 $0.77 $0.73 As of 12/31 for years shown *Earnings Per Share adjusted for 3-for-2 stock split completed in 2017 27
Slide 28: Why Invest in GABC? Tangible Book Value Per Share
Why Invest in GABC? GABC Tangible Book Value Per Share * $13.45 $11.94 $11.57 $10.40 $8.92 $8.62 $7.64 As of 12/31 for years shown *Tangible Book Value Per Share adjusted for 3-for-2 stock split completed in 2017 28
Slide 29: Why Invest in GABC? Stock Price Appreciation
Why Invest in GABC? * GABC Stock Price Appreciation $35.07 $35.33 $22.21 $20.35 $18.95 $14.48 $12.13 As of 12/31 for years shown *Stock Price adjusted for 3-for-2 stock split completed in 2017 29
Slide 30: Why Invest in GABC?
Why Invest in GABC? Increasing long-term institutional ownership • Proven Executive Management Team • Track Record of Consistent Top Quartile Financial Performance • Experienced in Operating Plan Execution and M & A Transitions • Potential Growth within New Market Areas – Small MSA Focus • Existing
Slide 31: Mark A. Schroeder and Bradley M. Rust contact details
Mark A. Schroeder, Chairman and CEO (812) 482-0701 mark.schroeder@germanamerican.com Bradley M. Rust, EVP and CFO (812) 482-0718 brad.rust@germanamerican.com 31
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