German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — KBW Winter Financial Services Conference 2024
23 slides from German American Bancorp's conference presentation, Feb 13, 2024
Slide 1: KBW Winter Financial Services Conference
Symbol: GABC February 14-15, 2024 KBW Winter Financial Services Conference German American 1 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
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
Indiana & Kentucky Community-focused Financial Services Organization Who We Are 4 $6.2 Billion Total Banking Assets $3.0 Billion Investment & Trust Assets Under Management 900+ Team Members 75 Banking Offices in Indiana & Kentucky
Slide 5: 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 Attract
Slide 6: History of Superior Financial Performance
History of Superior Financial Performance 6 Raymond James 2012-2017 and 2019-2021 Community Bankers Cup Recipient KBW/Stifel 2010 though 2022 Bank Honor Roll Recipient Piper Sandler Small Cap All- Star 2012-2013 and 2019-2020 Bank Director Magazine – Bank Performance Scorecard Top 15 National Rankin
Slide 7: Financial Trends
FINANCIAL TRENDS 7
Slide 8: Total Assets and Return on Average Assets
Total Assets 8 $4,398 $4,978 $5,609 $6,156 $6,152 1.43% 1.32% 1.57% 1.26% 1.43% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 (dollars in millions, except per share amount) Return on Average Assets * 2022 was impacted by acquisition-related expenses and the Day 1 provision for credit losses under the
Slide 9: Loan Portfolio Trends
Loan Portfolio Trends 9 $3,077 $3,088 $3,004 $3,785 $3,971 80% 82% 81% 81% 81% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 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% 44.89% 31.70% 31.35% 31.86% 31.
Slide 10: Diversified Loan Portfolio
Diversified Loan Portfolio 10 Construction & Development Loans $ 333.6 million 8% Agricultural Loans $ 431.9 million 11% Commercial & Industrial Loans $ 615.6 million 16% Commerical Real Estate Owner Occupied $ 513.5 million 13% Commercial Real Estate Non- Owner Occupied $ 993.1 million 25% Multi-Fa
Slide 11: Non-Performing Assets to Total Assets
Non-Performing Assets to Total Assets 11 0.33% 0.44% 0.26% 0.23% 0.15% 0.45% 0.52% 0.34% 0.29% 0.34% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 GABC Peer Group *Peer Group (St. Louis Federal Reserve District BHC with Total Assets between $3 and $10 billion) Data as of 9/30/23 *
Slide 12: Total Deposits
Total Deposits 12 $3,430 $4,107 $4,744 $5,350 $5,253 82% 88% 93% 92% 85% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 Non-Maturity Deposit Accounts as % of Total Deposits (dollars in millions) 2019 0.72% 2020 0.35% 2021 0.11% 2022 0.24% 2023 1.10% Cost of Deposts Per Year
Slide 13: Total Deposit Composition
13 Commercial $1,562 million 30% Public Fund $1,229 million 23% Retail $2,462 million 47% Non-Interest Bearing Demand $1,493 million 28% Interest Bearing Demand, Savings & Money Market $2,993 million 57% Time Deposits > $100,000 $478 million 9% Time Deposits < $100,000 $289 million 6% Total Deposits
Slide 14: Total Shareholders' Equity
$574 $625 $668 $558 $664 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 (dollars in millions) Total Shareholders' Equity 14
Slide 15: Regulatory Capital Levels
Regulatory Capital Levels 15 16.50% 14.97% 14.26% 11.75% 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 16: Net Interest Income
Net Interest Income 16 $145,225 $155,243 $160,830 $200,584 $190,433 3.92% 3.63% 3.31% 3.45% 3.58% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 Net Interest Margin (Tax-Equivalent) (dollars in thousands)
Slide 17: Non-Interest Income
Net Gains on Sales of Loans $2.4 million 4% Wealth Management $11.7 million 19% Service Charges on Deposit Accounts $11.5 million 19% Insurance Revenues $9.6 million 16% Interchange Fee Income $17.5 million 29% Other Operating Income $7.6 million 13% Total Non- Interest Income $60.3 million Non-Inte
Slide 18: Non-Interest Expense
Non-Interest Expense 18 $114,162 $117,123 $124,007 $154,191 $144,497 57.4% 54.3% 54.4% 56.6% 55.1% 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 Efficiency Ratio * 2022 was impacted by acquisition-related expenses for the CUB transaction that closed on January 1, 2022 of $12,323. * (dollars in thousa
Slide 19: Net Income & Earnings Per Share
Net Income & Earnings Per Share 19 $59,222 $62,210 $84,137 $81,825 $85,888 $2.29 $2.34 $3.17 $2.78 $2.91 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 Earnings Per Share * 2022 was impacted by acquisition-related expenses and the Day 1 provision for credit losses under the CECL model for the CUB tran
Slide 20: Why Invest in GABC? Earnings Per Share Growth
Why Invest in GABC? 20 $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 acquisitio
Slide 21: Why Invest in GABC? Dividends Per Share Growth
Why Invest in GABC? 21 $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 * * * * GABC Dividends Per Share Growth
Slide 22: Why Invest in GABC?
Why Invest in GABC? 22 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
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