German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — Shareholder Meeting (May 2019)
38 slides from German American Bancorp's shareholder meeting presentation, May 16, 2019
Slide 1: German American Bancorp, Inc. 2019 Annual Meeting
= German American Bancorp, Inc. 2019 Annual Meeting
Slide 2: Mark A. Schroeder, Chairman and CEO
Mark A. Schroeder Chairman and CEO = = German American Bancorp, Inc. I A I |
Slide 3: Board of Directors: Re-election
Board of Directors: Re-election Zachary W. Bawel J. David Lett Thomas W. Seger Lee A Mitchell
Slide 4: Board of Directors
sa" Board of Directors Zachary W. Bawel Lonnie D. Collins Christina M. Ernst Marc D. Fine Jason M. Kelly U. Butch Klem J. David Lett Lee A. Mitchell Chris A. Ramsey M. Darren Root Mark A. Schroeder Thomas W. Seger Raymond W. Snowden
Slide 5: Introductions
Introductions
Slide 6: German American Bancorp, Inc.
=_- German American Bancorp, Inc.
Slide 7: Management Report
rs Management Report
Slide 8: 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 9: 2018 Year in Review
2018 Year in Review
Slide 10: Kentucky Divisional / Regional Senior Management Team
Kentucky Divisional / Regional Senior Management Team Mike Beckwith Amy Jackson Krista Niehaus Scott Powell Divisional President Regional President Regional Senior VP Regional Exec VP Retail Banking Commercial Credit Officer
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Slide 12: Who We Are
Who We Are Indiana & Kentucky Community-focused Financial Services Organization • Banking, Insurance, Investments & Trust • $3.9 Billion Total Banking Assets • $1.6 Billion Investment and Trust Assets Under Management • $60 Million Annual Insurance Premiums • 750+ FTEs • 65 Branch Offices 12
Slide 13: Bradley M. Rust, Executive Vice President and CFO
Bradley M. Rust Executive Vice President and CFO
Slide 14: Financial Trends
rs Financial Trends
Slide 15: Net Income & Earnings Per Share
Net Income & Earnings Per Share Earnings Per Share $50,000 $46,529 $45,000 $40,676 $40,000 $35,184 $35,000 $30,064 $30,000 $28,344 $25,000 $1.99 $20,000 $1.77 $1.51 (1) $1.57 (1) $1.43 (1) $15,000 $10,000 $5,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 (Dollars in Thousands, Except Per Share
Slide 16: Total Assets and Annualized Return on Assets
Total Assets Annualized Return on Assets $4,000 $3,929 $3,896 $3,500 $3,144 $2,956 $3,000 $2,500 $2,374 $2,237 $2,000 $1,500 1.55% 1.33% 1.35% 1.38% 1.31% 1.24% $1,000 $500 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 03/31/19 (Dollars in Millions)
Slide 17: Total Loans, Net of Unearned Income
Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total Loans $3,000 $2,728 $2,709 $2,750 $2,500 $2,250 $2,142 $1,990 $2,000 $1,750 $1,564 $1,500 $1,448 $1,250 $1,000 81% 82% 81% 81% 78% 78% $750 $500 $250 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 03/31/19 (Dollars in
Slide 18: Loan Portfolio Composition
Loan Portfolio Composition As of December 31, 2018 Total Loans $2,728.1 million Construction & Development Residential Mortgage Loans, Loans, $ 147.2 million, 5% $ 328.5 million, 12% Agricultural Loans, $ 364.7 million, 13% Home Equity Loans, $ 209.5 million, 8% Consumer Loans, Commercial Real Estat
Slide 19: Non-Performing Assets to Total Assets
Non-Performing Assets to Total Assets 2.50% 2.00% 1.50% 1.04% 1.00% 0.84% 0.76% 0.48% 0.45% 0.50% 0.29% 0.15% 0.14% 0.38% 0.34% 0.34% 0.00% 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 03/31/19 GABC Peer Group
Slide 20: Total Deposits
Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits $3,500 $3,073 $3,065 $3,000 $2,484 $2,500 $2,350 $2,000 $1,780 $1,826 $1,500 83% 84% 84% 81% 81% 79% $1,000 $500 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 03/31/19 (Dollars in Millions)
Slide 21: Total Deposit Composition
Total Deposit Composition as of December 31, 2018 Total Deposits $3,072.6 million Non-Interest Bearing Demand, $716.0 million, 23% Interest Bearing Demand, Savings & Money Market, $1,768.2 million, 58% Cost of Funds 2014 0.30% 2015 0.28% 2016 0.32% Time Deposits, $588.4 million, 2017 0.40% 19% 2018
Slide 22: Total Shareholders' Equity and Return on Equity
Total Shareholders’ Equity Annualized Return on Equity $500 $479 $459 $450 $400 $365 $350 $330 $300 $252 $250 $229 $200 13.21% 12.98% 12.47% 12.07% $150 10.94% 11.59% $100 $50 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 03/31/19 (Dollars in Millions)
Slide 23: Net Interest Income and Net Interest Margin
Net Interest Income Net Interest Margin (Tax-Equivalent) $140,000 $120,000 $117,345 $105,057 $99,470 $100,000 $79,072 $80,000 $76,991 $60,000 3.76% 3.75% 3.76% 3.75% 3.70% $40,000 $34,299 $26,261 3.88% $20,000 3.66% $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 Q1 '18 Q1 '19 (Dollars in Thousands)
Slide 24: Non-Interest Income
Non-Interest Income Non-Interest Income as % of Total Revenue $40,000 $37,070 $35,000 $32,013 $31,854 $30,000 $27,444 $25,000 $23,937 $20,000 26% 24% 24% 24% $15,000 23% $11,658 $9,492 $10,000 $5,000 27% 26% $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 Q1 '18 Q1 '19 (Dollars in Thousands)
Slide 25: Non-Interest Expense and Efficiency Ratio
Non-Interest Expense Efficiency Ratio $100,000 $93,553 $90,000 $80,000 $76,587 $77,803 $70,000 $61,326 $60,000 $57,713 $50,000 60.6% $40,000 58.3% 57.2% 57.6% $30,000 56.8% $26,759 $20,445 $20,000 58.2% 57.2% $10,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 Q1 '18 Q1 '19 (Dollars in Thousands
Slide 26: Net Income & Earnings Per Share
Net Income & Earnings Per Share Earnings Per Share $50,000 $46,529 $45,000 $40,676 $40,000 $35,184 $35,000 $30,064 $30,000 $28,344 $25,000 $1.99 $20,000 $1.77 $1.51 (1) $1.57 (1) $1.43 (1) $15,067 $15,000 $11,813 $10,000 $0.51 $0.60 $5,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 Q1 '18 Q1 '1
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Slide 28: Capitalize upon Market Strength & Growth: Bowling Green, Kentucky
Capitalize upon Market Strength & Growth Bowling Green, Kentucky Regional Expansion GABC Deposit Market Share Total Total GABC Position Market Market Market Deposits GABC Market Market Market Deposits Competitors per Competitor Loans** Deposits** % # Bowling Green (Warren) * $ 2,541,017 19 $133,738
Slide 29: Bowling Green branch locations
771 Campbell Lane 1805 Campbell Lane 2825 Scottsville Road 1700 Scottsville Road 1018 Chestnut Street 987 Lehman Avenue
Slide 30: History of Superior Financial Performance
History of Superior Financial Performance Nine Years of Consecutive Record Earnings Performance Double-Digit Return on Equity for Past 14 Consecutive Fiscal Years Bank Director Magazine - Bank Performance Scorecard Top 15 National Ranking for Past 4 Years ($1 - $5 billion Publicly-traded Companies)
Slide 31: Comparison of Cumulative Total Return
Comparison of 5 Year Cumulative Total Return & Comparison of 15-year Annualized Return Assumes Initial Investment of $100,000 $350,000 15 years = $378,539 (9.3%) $300,000 10 years = $474,962 (16.1%) $250,000 $200,000 5 years = $162,078 (10.1%)% $150,000 $100,000 $50,000 2013 2014 2015 2016 2017 2018
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Slide 33: Question & Answers
Question & Answers
Slide 34: Board of Directors: Re-election
Board of Directors: Re-election Zachary W. Bawel J. David Lett Thomas W. Seger Lee A Mitchell
Slide 35: German American Bancorp, Inc.
= 5 German American Bancorp, Inc.
Slide 36: Crowe Horwath
J Crowe Horwath.
Slide 37: Thank You!
Thank You! Lonnie D. Collins
Slide 38: Slide 38
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