German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — KBW Community Bank Investor Conference 2021
29 slides from German American Bancorp's conference presentation, Aug 3, 2021
Slide 1: KBW Community Bank Investor Conference
German American Symbol: GABC August 3 – 5, 2021 KBW Community Bank Investor Conference
Slide 2: Presented By
Presented By 2 Mark A. Schroeder, Chairman and CEO (812) 482-0701 mark.schroeder@germanamerican.com D. Neil Dauby, President and Chief Operating Officer (812) 482-0707 neil.dauby@germanamerican.com Bradley M. Rust, Senior Executive Vice President and CFO (812) 482-0718 brad.rust@germanamerican.com
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 • $5.3 Billion Total Banking Assets • $2.24 Billion Investment and Trust Assets Under Management • $70 Million Annual Insurance Premiums • ~ 800 Team Members • 68 Banking Offices
Slide 5: Diversified Economic Base - Indiana
5 Diversified Economic Base Regional Education, Health Care Manufacturing & Logistics Life Sciences & Technology EnergyMAJOR INDIANA EMPLOYERS: Education Indiana University Indiana University Southeast University of Southern Indiana Vincennes University Greater Clark County School Corp Evansville Va
Slide 6: Diversified Economic Base - Kentucky
6 Diversified Economic Base Regional Education Health Care & Social Assistance Manufacturing & Logistics Retail & Government MAJOR KENTUCKY EMPLOYERS: Education University of Kentucky Western Kentucky University Daviess County Public School System Fayette County Public Schools Warren County Public S
Slide 7: Capitalize upon Market Strength & Growth - Indiana
7 Capitalize upon Market Strength & Growth Indiana Small MSA Market Expansion Market Total Market Deposits GABC Deposit Market Share*** Market Share Position*** # of Branches Heritage Markets* $ 5,885,297 33% #1 30 Evansville/Newburgh $ 6,311,228 9% #3 8 Bloomington $ 2,898,211 11% #4 3 Columbus $ 1
Slide 8: Capitalize upon Market Strength & Growth - Kentucky
8 Capitalize upon Market Strength & Growth Kentucky Small MSA Market Expansion Market Total Market Deposits GABC Deposit Market Share* Market Share Position* # of Branches* Owensboro $ 2,970,664 5% #6 3 Bowling Green $ 2,959,761 9% #4 5 Lexington $ 9,430,592 .3% #24 2 Total Kentucky Growth Markets $
Slide 9: History of Superior Financial Performance
Hi st or y of S up er io r Fi na nc ia l P er fo rm an ce - Nine Consecutive Years of Increased Dividends - Eleven Years of Consecutive Record Earnings Performance - Double-Digit Return on Equity for Past 16 Consecutive Fiscal Years - Bank Director Magazine - Bank Performance Scorecard Top 15 Nation
Slide 10: Financial Trends
FINANCIAL TRENDS 10
Slide 11: Total Assets and Return on Assets
$2,956 $3,144 $3,929 $4,398 $4,978 $5,349 1.24% 1.35% 1.38% 1.43% 1.32% 1.66% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 6/30/21 (Dollars in Millions) Total Assets Annualized Return on Assets 11
Slide 12: Total Loans
$1,990 $2,142 $2,728 $3,077 $3,088 $3,071 81% 81% 78% 80% 82% 82% $- $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 $2,750 $3,000 $3,250 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 6/30/21 (Dollars in Millions) Total Loans, Net of Unearned Income Commercial & Agricultural Loans as
Slide 13: Loan Portfolio Composition
Construction & Development Loans, $ 205.1 million, 7% Agricultural Loans, $ 352.5 million, 11% Commercial Real Estate Owner Occupied, $ 379.5 million, 12% Commercial Real Estate Non-Owner Occupied, $ 752.4 million, 25% Multi-Family Residential Properties, $ 218.8 million, 7% Commercial & Industrial
Slide 14: Non-Performing Assets to Total Assets
0.14% 0.38% 0.34% 0.33% 0.44% 0.34% 0.76% 0.48% 0.45% 0.45% 0.52% 0.47%* 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 6/30/21 Non-Performing Assets to Total Assets GABC Peer Group 14 *Peer Group as of 03/31/21
Slide 15: Total Deposits
$2,350 $2,484 $3,073 $3,430 $4,107 $4,450 84% 84% 81% 82% 88% 91% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 6/30/21 (Dollars in Millions) Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits 15
Slide 16: Deposit Composition and Cost of Funds
Non-Interest Bearing Demand, $1,350.4 million, 30% Interest Bearing Demand, Savings & Money Market, $2,688.6 million, 61% Time Deposits, $410.7 million, 9% Deposit Composition as of June 30, 2021 Total Deposits $4,449.7million 16 Year Cost of Deposits Cost of Funds 2016 0.23% 0.32% 2017 0.30% 0.40%
Slide 17: Shareholders' Equity and Return on Tangible Equity
$330 $365 $459 $574 $625 $649 13.02% 13.82% 14.82% 14.98% 13.46% 17.38% $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 6/30/21 (Dollars in Millions) Total Shareholders’ Equity Annualized Return on Tangible Equity 17
Slide 18: Net Interest Income and Net Interest Margin
$94,904 $99,909 $114,610 $145,225 $155,243 $74,715 $78,812 3.75% 3.76% 3.75% 3.92% 3.63% 3.66% 3.35% $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 6/30/20 YTD 6/30/21 YTD (Dollars in Thousands) Net Interest Income Net Int
Slide 19: Provision for Credit Losses and Net Charge-offs
$1,200 $1,750 $2,070 $5,325 $17,550 $11,050 $(6,500) 0.04% 0.04% 0.08% 0.17% 0.08% 0.03% 0.02% $(8,000) $(6,000) $(4,000) $(2,000) $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 6/30/20 YTD 6/30/21 YTD (Dollars in Thousands
Slide 20: Non-Interest Income
$32,013 $31,854 $37,070 $45,501 $54,474 $26,504 $28,939 25% 24% 24% 24% 26% 26% 27% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 6/30/20 YTD 6/31/21 YTD (Dollars in Thousands) Non-Interest Income Non-Interest Income as % of Total Revenue 20
Slide 21: Non-Interest Expense and Efficiency Ratio
$76,587 $77,803 $93,553 $114,162 $117,123 $58,416 $60,296 58.3% 56.8% 60.6% 59.0% 55.0% 56.9% 54.8% $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 6/30/20 YTD 6/30/21 YTD(Dollars in Thousands) Non-Interest Expense Efficiency Ratio 21
Slide 22: Net Income & Earnings Per Share
$35,184 $40,676 $46,529 $59,222 $62,210 $26,727 $43,379 $1.57 $1.77 $1.99 $2.29 $2.34 $1.01 $1.64 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 6/30/20 YTD 6/30/21 YTD (Dollars in Thousands, Except Per Share Amounts) Net Income & Earnings Per
Slide 23: Why Invest in GABC?
WHY INVEST IN GABC? 23
Slide 24: GABC Earnings Per Share Growth
24 Why Invest in GABC? $1.07 $1.27 $1.32 $1.43 $1.51 $1.57 $1.77 $1.99 $2.29 $2.34 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
Slide 25: GABC Tangible Book Value Per Share
25 $7.64 $8.62 $8.92 $10.40 $11.57 $11.94 $13.45 $13.81 $16.49 $18.63 GABC Tangible Book Value Per Share Why Invest in GABC? * As of 12/31 for years shown *Tangible Book Value Per Share adjusted for 3-for-2 stock split completed in 2017
Slide 26: GABC Stock Price Appreciation
26 $12.13 $14.48 $18.95 $20.35 $22.21 $35.07 $35.33 $27.77 $35.62 $33.09 GABC Stock Price Appreciation Why Invest in GABC? As of 12/31 for years shown * *Stock Price adjusted for 3-for-2 stock split completed in 2017
Slide 27: Why Invest in GABC
Why Invest in GABC 27 • 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 Platform for Operating Efficiency • Infrast
Slide 28: German American Bancorp, Inc.
German American Bancorp, Inc. 28 Mark A. Schroeder, Chairman and CEO (812) 482-0701 mark.schroeder@germanamerican.com D. Neil Dauby, President and Chief Operating Officer (812) 482-0707 neil.dauby@germanamerican.com Bradley M. Rust, Senior Executive Vice President and CFO (812) 482-0718 brad.rust@ge
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