German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — Raymond James US Bank and Banking on Tech Conference (September 2023)
23 slides from German American Bancorp's conference presentation, Sep 5, 2023
Slide 1: Raymond James US Bank and Banking on Tech Conference
Symbol: GABC September 6, 2023 Raymond James US Bank and Banking on Tech Conference German American
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
Who We Are Indiana & Kentucky Community-focused Financial Services Organization • Banking, Insurance, Investments & Trust • $6.1 Billion Total Banking Assets • $2.7 Billion Investment and Trust Assets Under Management • $74 Million Annual Insurance Premiums • ~ 900 Team Members • 76 Banking Offices
Slide 5: History of Superior Financial Performance
5 History of Superior Financial Performance Eleven Consecutive Years of Increased Dividends Twelve of the Past Thirteen Years of Improved Earnings Performance Double-Digit Return on Equity for 18 Consecutive Fiscal Years Raymond James 2012-2017 and 2019-2021 Community Bankers Cup Recipient
Slide 6: Financial Trends
6 FINANCIAL TRENDS
Slide 7: Total Assets and Return on Average Assets
7 $3,929 $4,398 $4,978 $5,609 $6,156 $6,053 1.38% 1.43% 1.32% 1.57% 1.26% 1.42% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 06/30/23 (Dollars in Millions) Total Assets Return on Average Assets * * 2022 was impacted by acquisition-related expenses
Slide 8: Total Loans and Commercial & Agricultural Share
8 $2,728 $3,077 $3,088 $3,004 $3,785 $3,826 78% 80% 82% 81% 81% 81% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 06/30/23 (Dollars in Millions) Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total Loans
Slide 9: Loan Portfolio Composition as of June 30, 2023
9 Construction & Development Loans, $ 361.3 million, 9% Agricultural Loans, $ 402.6 million, 11% Commercial & Industrial Loans, $ 626.2 million, 16% Commercial Real Estate Owner Occupied, $ 479.5 million, 13% Commercial Real Estate Non- Owner Occupied, $ 953.0 million, 25% Multi-Family Residential P
Slide 10: Non-Performing Assets to Total Assets vs Peer Group
10 0.34% 0.33% 0.44% 0.26% 0.23% 0.21% 0.45% 0.45% 0.52% 0.34% 0.29% 0.28% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 06/30/23 Non-Performing Assets to Total Assets GABC Peer Group * *Peer Group (St. Louis Federal Reserve District BHC with Total Assets between $
Slide 11: Total Deposits and Non-Maturity Deposit Share
11 $3,073 $3,430 $4,107 $4,744 $5,350 $5,180 81% 82% 88% 93% 92% 89% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 06/30/23 (Dollars in Millions) Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits
Slide 12: Deposit Composition
12 Deposit Composition Total Deposits: $5,180 million 20% of Total Deposits are Uninsured and Uncollateralized as of 06/30/23 Average Deposit Account Size equals $20,650 NOTE: Commercial $1,520 million 29% Public $1,191 million 23% Retail $2,469 million 48% 6/30/2023 3/31/2023 12/31/2019 Non-interes
Slide 13: Shareholders' Equity and Return on Average Tangible Equity
13 $459 $574 $625 $668 $558 $603 14.82% 14.98% 13.46% 16.38% 19.51% 21.34% $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 06/30/23 (Dollars in Millions) Total Shareholders’ Equity Return on Average Tangible Equity * 2022 was
Slide 14: Net Interest Income and Net Interest Margin
14 $114,610 $145,225 $155,243 $160,830 $200,584 $96,505 $97,267 3.75% 3.92% 3.63% 3.31% 3.45% 3.24% 3.66% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% $- $25,000 $50,000 $75,000 $100,000 $125,000 $150,000 $175,000 $200,000 $225,000 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 06/30/22 06/30/23 (Dollars in Th
Slide 15: Non-Interest Income
15 $37,070 $45,501 $54,474 $59,462 $59,133 $31,368 $29,863 24% 24% 26% 27% 23% 25% 23% 10% 20% 30% 40% 50% 60% 70% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 06/30/22 06/30/23 (Dollars in Thousands) Non-Interest Income Non-Interest Income
Slide 16: Non-Interest Income Composition
16 Wealth Management Fees, $5.5, 18% Service Charges on Deposit Accounts, $5.7, 19% Insurance Revenues, $5.3, 18% Interchange Fee Income, $8.6, 29% Other Operating Income, $3.5, 12% Net Gains on Sales of Loans, $1.2, 4% Net Gains on Sales of Securities, $0.1, 0% Non-Interest Income as of June 30, 20
Slide 17: Non-Interest Expense and Efficiency Ratio
17 $93,553 $114,162 $117,123 $124,007 $154,191 $83,861 $73,342 59.7% 57.4% 54.3% 54.4% 56.6% 62.7% 55.1% 50.0% 55.0% 60.0% 65.0% 70.0% 75.0% 80.0% 85.0% 90.0% 95.0% 100.0% $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 06/
Slide 18: Net Income & Earnings Per Share
18 $46,529 $59,222 $62,210 $84,137 $81,825 $31,814 $42,930 $1.99 $2.29 $2.34 $3.17 $2.78 $1.11 $1.45 $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 06/30/22 06/30/23
Slide 19: Why Invest in GABC?
19 WHY INVEST IN GABC?
Slide 20: GABC Earnings Per Share Growth
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 GABC Earnings Per Share Growth * As of 12/31 for years shown * Earnings Per Share adjusted for 3-for-2 stock split completed in 2017 ** ** 2022 was impacted by acquisition-related expenses and the Day 1 provision for credit l
Slide 21: GABC Dividends Per Share Growth
21 Why Invest in GABC? $0.40 $0.43 $0.45 $0.48 $0.52 $0.60 $0.68 $0.76 $0.84 $0.92 GABC Dividends Per Share Growth As of 12/31 for years shown *Dividends per share adjusted for 3-for-2 stock split completed in 2017
Slide 22: Why Invest in GABC?
Why Invest in GABC? 22 • Proven Executive Management Team • Track Record of Consistent Top Quartile Financial Performance • Experienced in Operating Plan Execution and M & A Transitions • Organic Growth Opportunities within New Market Areas – Small MSA and Large Major Metro • Existing Platform for C
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