German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — FIG Partners Bank CEO Forum 2019
31 slides from German American Bancorp's conference presentation, Jan 30, 2019
Slide 1: German American FIG Partners Bank CEO Forum
German American Symbol: GABC January 30-31, 2019 FIG Partners Bank CEO Forum
Slide 2: Presented By
Presented By Mark A. Schroeder, Chairman and CEO (812) 482-0701 mark.schroeder@germanamerican.com Bradley M. Rust, Executive VP 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 Southern Indiana Community- focused Financial Services Organization • Banking, Insurance, Investments & Trust • $4.0 Billion Total Banking Assets • $1.5 Billion Investment and Trust Assets Under Management • $60 Million Annual Insurance Premiums • 750+ FTEs • 65 Branch Offices 4
Slide 5: Diversified Economic Base: Major Indiana Employers
Diversified Economic Base Regional Education & Health Care Life Sciences & Technology Agriculture, Manufacturing & Logistics MAJOR INDIANA EMPLOYERS: Manufacturing & Logistics Education Aisin U.S.A. MFG, Inc. Indiana University ALCOA Warrick Operations Life Sciences & Technology Indiana University S
Slide 6: Diversified Economic Base: Major 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: Non-Seasonally Adjusted Unemployment Rate
Non-Seasonaily Adjusted Unemployment Rate County Unemployment Rates sm Lover Than US. Rate Non-Seasonally Adjusted source: ow0, Locai area Unemployment Statistics mm Higher Than US. Rate November 2018 — = =| : 7 Indiana Non-Seasonally Adjusted Rate 3.756 Indiana Seasonally Agjusted Rate 3.6% US Non-
Slide 8: Kentucky Unemployment Rate
Kentucky Kentucky Non-Seasonally Adjusted Rate 3.5% US Non-Seasonally Adjusted Rate 3.7% 8
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* $ 5,154,552 33% #1 31 Evansville/Newburgh $ 4,281,629 12% #3 8 Bloomington $ 2,480,309 8% #5 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 $ 2,935,148 6% #6 2 Bowling Green $ 2,541,017 4% #9 3 Lexington $ 7,403,387 .5% #20 2 Total Kentucky $ 12,879,552 Growt
Slide 11: Capitalize upon Market Strength & Growth: Heritage Markets
Capitalize upon Market Strength & Growth *Heritage Markets 2018 2008** 2018 # of (millions) Deposits Share Deposits Share Increase Offices 1 German American $ 1,679 32.6% $ 1,143 26.6% 46.9% 31 2 Old National Bank $ 1,066 20.7% $ 1,283 29.8% - 16.9% 14 3 Fifth Third Bank $ 456 8.9% $ 481 11.2% -5.2%
Slide 12: Capitalize upon Market Strength & Growth: Evansville/Newburgh
Capitalize upon Market Strength & Growth Evansville/Newburgh Markets 2018* 2008** 2018 # of (millions) Deposits Share Deposits Share Increase Offices 1 Old National Bank $ 1,689 39.5% $ 1,960 51.4% -13.8% 14 2 Fifth Third Bank $ 1,256 29.3% $ 1,053 27.6% 19.3% 12 3 German American $ 498 11.6% $ 312
Slide 13: History of Superior Financial Performance
History of Superior Financial Performance Nine Years of Consecutive Record Earnings Performance Double-Digit Return on Equity for 14 Consecutive Fiscal Years Bank Director Magazine - Bank Performance Scorecard • Top 20 National Ranking for Past 4 Years (2015 – 2018) for $1 - $5 billion Publicly-trad
Slide 14: Financial Trends
Financial Trends op at | eee sa!
Slide 15: Total Assets and Return on Assets
Total Assets Annualized Return on Assets $4,000 $3,929 $3,500 $3,144 $2,956 $3,000 $2,500 $2,374 $2,237 $2,000 $1,500 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 (Dollars in Millions) 15
Slide 16: Total Loans, Net of Unearned Income
Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total Loans $3,000 $2,728 $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% $750 $500 $250 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 (Dollars in Millions) 16
Slide 17: 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 18: 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% 0.48%* 0.50% 0.29% 0.15% 0.14% 0.38% 0.34% 0.00% 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 GABC Peer Group * Peer Group Information as of 9/30/18 18
Slide 19: Total Deposits
Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits $3,500 $3,073 $3,000 $2,484 $2,500 $2,350 $2,000 $1,780 $1,826 $1,500 83% 84% 84% 81% 81% $1,000 $500 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 (Dollars in Millions) 19
Slide 20: 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 21: Total Shareholders' Equity and Return on Equity
Total Shareholders’ Equity Annualized Return on Equity $500 $459 $450 $400 $365 $350 $330 $300 $252 $250 $229 $200 13.21% 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 (Dollars in Millions) 21
Slide 22: Net Interest Income and Net Interest Margin
Net Interest Income (Tax Equivalent) Net Interest Margin $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 $20,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 (Dollars in Thousands) 22
Slide 23: 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% $10,000 $5,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/2018 (Dollars in Thousands) 23
Slide 24: 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% $20,000 $10,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 (Dollars in Thousands) 24
Slide 25: 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 $1.57 $1.43 $1.51 $15,000 $10,000 $5,000 $- 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 (Dollars in Thousands, Except Per Share A
Slide 26: Why Invest in GABC?
Why Invest in GABC? op at Eg eS ake oa
Slide 27: Why Invest in GABC? Earnings Per Share Growth
Why Invest in GABC? * GABC Earnings Per Share Growth $1.99 $1.77 $1.51 $1.57 $1.43 $1.27 $1.32 $1.07 $0.81 $0.73 As of 12/31 for years shown *Earnings Per Share adjusted for 3-for-2 stock split completed in 2017 27
Slide 28: Why Invest in GABC? Tangible Book Value Per Share
Why Invest in GABC? GABC Tangible Book Value Per Share * $13.81 $13.45 $11.94 $11.57 $10.40 $8.92 $8.62 As of 12/31 for years shown *Tangible Book Value Per Share adjusted for 3-for-2 stock split completed in 2017 28
Slide 29: Why Invest in GABC? Stock Price Appreciation
Why Invest in GABC? * GABC Stock Price Appreciation $35.07 $35.33 $27.77 $22.21 $20.35 $18.95 $14.48 As of 12/31 for years shown *Stock Price adjusted for 3-for-2 stock split completed in 2017 29
Slide 30: 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 • Existing
Slide 31: Mark A. Schroeder and Bradley M. Rust contact details
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 31
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