German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — Janney West Coast CEO Forum 2020
29 slides from German American Bancorp's conference presentation, Jan 29, 2020
Slide 1: German American – Janney West Coast CEO Forum
German American Symbol: GABC January 29 – 30, 2020 Janney West Coast CEO Forum
Slide 2: Presented By
Presented By 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 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 Indiana & Kentucky Community-focused Financial Services Organization • Banking, Insurance, Investments & Trust • $4.4 Billion Total Banking Assets • $1.6 Billion Investment and Trust Assets Under Management • $60 Million Annual Insurance Premiums • 850+ FTEs • 76 Banking Offices 4
Slide 5: Diversified Economic Base – Indiana Employers
Diversified Economic Base Regional Education & Health Care Life Sciences & Technology Agriculture, Manufacturing & Logistics Manufacturing & Logistics MAJOR INDIANA EMPLOYERS: Aisin U.S.A. MFG, Inc. Education ALCOA Warrick Operations Life Sciences & Technology Indiana University Amazon Fulfillment S
Slide 6: Diversified Economic Base – Kentucky Employers
Diversified Economic Base Regional Education & Health Care Life Sciences & Technology Agriculture, Manufacturing & Logistics MAJOR KENTUCKY EMPLOYERS: Education Manufacturing & Logistics Retail University of Kentucky Bowling Green Metal Forming Amazon Western Kentucky University Fruit of the Loom Ho
Slide 7: Indiana Unemployment Rates
Indiana Non-Seasonally Adjusted Unemployment Rate County Unemployment Rates Sm Lower Than US, Rate Non-Seasonally Adjusted source: pwo, Local area Unemployment Statistics i higher whe Ue an November 2019 Indiana Non-Seasonally Adjusted Rate 3.2% US Non-Seasonally Adjusted Rate 3.3% German American B
Slide 8: Kentucky Unemployment Rates
Kentucky County Unemployment Rates Non-Seasonally Adjusted Unemployment Rate Non-Seasonally Adjusted Source: Workforce Intelligence Branch, Kentucky Center for Education and Workforce HE 2.0% - 3.5% Statistics, Kentucky Education and Workforce Development Cabinet [Hl 3.6% - 3.9% | 4.0% - 4.6% 4.7% -
Slide 9: Capitalize upon Market Strength & Growth – Indiana
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* $ 5,300,573 34% #1 31 Evansville/Newburgh $ 4,830,382 10% #3 8 Bloomington $ 2,474,524 9% #4 3 Columbus $ 1,2
Slide 10: Capitalize upon Market Strength & Growth – Kentucky
Capitalize upon Market Strength & Growth Kentucky Small MSA Market Expansion Total Market GABC Deposit Market Share # of Market Deposits Market Share* Position* Branches* Owensboro $ 2,719,563 5% #6 3 Bowling Green $ 2,679,918 10% #4 6 Lexington $ 7,899,671 .2% #25 2 Total Kentucky $ 13,299,152 Grow
Slide 11: History of Superior Financial Performance
History of Superior Financial Performance Ten Years of Consecutive Record Earnings Performance Double-Digit Return on Equity for Past 15 Consecutive Fiscal Years Bank Director Magazine - Bank Performance Scorecard Top 15 National Ranking for Past 4 Years ($1 - $5 billion Publicly-traded Companies) B
Slide 12: Financial Trends
Financial Trends 12
Slide 13: Total Assets and Annualized Return on Assets
Total Assets Annualized Return on Assets $5,000 $4,500 $4,397 $3,929 $4,000 $3,500 $3,144 $2,956 $3,000 $2,500 $2,374 $2,000 1.43% 1.33% 1.35% 1.38% 1.24% $1,500 $1,000 $500 $- 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 (Dollars in Millions) 13
Slide 14: Total Loans, Net of Unearned Income
Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total Loans $3,250 $3,077 $3,000 $2,728 $2,750 $2,500 $2,250 $2,142 $1,990 $2,000 $1,750 $1,564 $1,500 $1,250 $1,000 82% 81% 81% 78% 80% $750 $500 $250 $- 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 (Dollars in Millions) 14
Slide 15: Loan Portfolio Composition as of December 31, 2019
Loan Portfolio Composition as of December 31, 2019 Total Loans $3,077.1 million Residential Mortgage Loans, Construction & Development $ 309.8 million, 10% Loans, Home Equity Loans, $ 189.1 million, 6% $ 226.9 million, 7% Agricultural Loans, Consumer Loans, $ 397.7 million, 13% $ 65.8 million, 2% Co
Slide 16: Non-Performing Assets to Total Assets
Non-Performing Assets to Total Assets 2.50% 2.00% 1.50% 1.00% 0.84% 0.76% 0.48% 0.45% 0.46%* 0.50% 0.15% 0.38% 0.14% 0.34% 0.33% 0.00% 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 GABC Peer Group *Peer Group Information as of 9/30/19 16
Slide 17: Total Deposits
Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits $3,500 $3,430 $3,073 $3,000 $2,484 $2,500 $2,350 $2,000 $1,826 $1,500 83% 84% 84% 81% 82% $1,000 $500 $- 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 (Dollars in Millions) 17
Slide 18: Deposit Composition as of December 31, 2019
Deposit Composition as of December 31, 2019 Total Deposits $3,430.0 million Non-Interest Bearing Demand, $833.0 million, 24% Interest Bearing Demand, Savings & Money Market, $1,965.6 million, 57% Cost of Funds 2015 0.28% 2016 0.32% 2017 0.40% 2018 0.61% Time Deposits, $631.4 million, 19% 2019 0.83%
Slide 19: Total Shareholders' Equity and Return on Equity
Total Shareholders’ Equity Annualized Return on Equity $650 $600 $574 $550 $500 $459 $450 $400 $365 $350 $330 $300 $252 $250 12.47% 12.07% 11.41% $200 10.94% 11.59% $150 $100 $50 $- 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 (Dollars in Millions) 19
Slide 20: Net Interest Income and Net Interest Margin
Net Interest Income Net Interest Margin (Tax-Equivalent) $160,000 $145,225 $140,000 $120,000 $114,610 $99,909 $100,000 $94,904 3.92% $80,000 $75,552 3.75% 3.76% 3.75% $60,000 3.70% $40,000 $20,000 $- 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 (Dollars in Thousands) 20
Slide 21: Non-Interest Income
Non-Interest Income Non-Interest Income as % of Total Revenue $50,000 $45,501 $45,000 $40,000 $37,070 $35,000 $32,013 $31,854 $30,000 $27,444 $25,000 26% 24% 24% $20,000 23% 24% $15,000 $10,000 $5,000 $- 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 (Dollars in Thousands) 21
Slide 22: Non-Interest Expense and Efficiency Ratio
Non-Interest Expense Efficiency Ratio $120,000 $114,162 $100,000 $93,553 $80,000 $76,587 $77,803 $61,326 $60,000 60.6% 59.0% 58.3% 57.6% $40,000 56.8% $20,000 $- 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 (Dollars in Thousands) 22
Slide 23: Net Income & Earnings Per Share
Net Income & Earnings Per Share Earnings Per Share* $59,222 $60,000 $50,000 $46,529 $40,676 $40,000 $35,184 $30,064 $30,000 $2.29 $1.99 $1.77 $1.57 $20,000 $1.51 $10,000 $- 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 (Dollars in Thousands, Except Per Share Amounts) *Earnings Per Share adjusted for
Slide 24: Why Invest in GABC?
Why Invest in GABC? 24
Slide 25: Why Invest in GABC? Earnings Per Share Growth
Why Invest in GABC? * GABC Earnings Per Share Growth $2.29 $1.99 $1.77 $1.51 $1.57 $1.43 $1.27 $1.32 $1.07 $0.81 As of 12/31 for years shown *Earnings Per Share adjusted for 3-for-2 stock split completed in 2017 25
Slide 26: Why Invest in GABC? Tangible Book Value Per Share
Why Invest in GABC? * GABC Tangible Book Value Per Share $16.49 $13.82 $13.45 $11.94 $11.57 $10.40 $8.62 $8.92 $7.64 $6.55 As of 12/31 for years shown *Tangible Book Value Per Share adjusted for 3-for-2 stock split completed in 2017 26
Slide 27: Why Invest in GABC? Stock Price Appreciation
Why Invest in GABC? * GABC Stock Price Appreciation $35.07 $35.33 $35.62 $27.77 $22.21 $20.35 $18.95 $14.48 $12.28 $12.13 As of 12/31 for years shown *Stock Price adjusted for 3-for-2 stock split completed in 2017 27
Slide 28: 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 • Existin
Slide 29: Contact – Mark A. Schroeder and Bradley M. Rust
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 29
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