German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — Janney CEO Forum 2021
32 slides from German American Bancorp's conference presentation, Feb 3, 2021
Slide 1: Janney CEO Forum
German American Symbol: GABC February 3 & 4, 2021 Janney CEO Forum
Slide 2: Presented By
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 Presented By 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
• 73 Banking Offices • 800 Team Members Indiana & Kentucky Community-focused Financial Services Organization • Banking, Insurance, Investments & Trust • $74 Million Annual Insurance Premiums Who We Are • $5.0 Billion Total Banking Assets • $2.0 Billion Investment and Trust Assets Under Management 4
Slide 5: COVID-19 Credit Risk Management
COVID-19 Credit Risk Management • Industry Segment Risk Profile • COVID-19 Related Loan Deferrals • Paycheck Protection Program 5
Slide 6: Industry Segment Profiles Affected by COVID-19
Industry Segment Number of Loans Outstanding Balance % Of Total Loans (excludes PPP Loans) % of Industry Segment Under Deferral Lodging/Hotels 48 $134,599 4.6% 33.8% Student Housing 102 $86,696 3.0% 0.0% Retail Shopping/Strip Centers 64 $91,456 3.1% 0.0% Restaurants 175 $46,891 1.6% 1.2% Industry Se
Slide 7: COVID-19 Related Loan Deferrals
Types of Loans Number of Loans Outstanding Balance % of Loan Category (Excludes PPP Loans) Commercial & Industrial Loans 9 $4,311 As of 12.31.20 As of 9.30.20 0.8% 1.2% Commercial Real Estate Loans 15 $43,951 3.0% 5.7% Agricultural Loans - - 0.0% 0.0% Consumer Loans 9 $80 n/m n/m Residential Mortgag
Slide 8: SBA Payroll Protection Plan
SBA Payroll Protection Plan As of December 31, 2020 • 3,070 SBA payroll protection plan loans • $351 million originated • $186 million outstanding • $12.0 million potential fees (net) • $4.1 million remaining deferred fees (net) 8
Slide 9: Diversified Economic Base - Indiana
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 Vand
Slide 10: Diversified Economic Base - Kentucky
Diversified Economic Base Regional Education Health Care & Social Assistance Manufacturing & Logistics Retail & GovernmentMAJOR KENTUCKY EMPLOYERS: Education University of Kentucky Western Kentucky University Daviess County Public School System Fayette County Public Schools Warren County Public Scho
Slide 11: Capitalize upon Market Strength & Growth - Indiana
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 $ 1,4
Slide 12: Capitalize upon Market Strength & Growth - Kentucky
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 $ 1
Slide 13: History of Superior Financial Performance
History of Superior Financial Performance 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 National Ranking for 2016 – 2019 ($1 - $5 billion Publicly-traded Companies)
Slide 14: Financial Trends
| TTT eee Financial Trends
Slide 15: Total Assets and Return on Assets
$2,956 $3,144 $3,929 $4,398 $4,978 1.24% 1.35% 1.38% 1.43% 1.32% $- $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 (Dollars in Millions) Total Assets Annualized Return on Assets 15
Slide 16: Total Loans
$1,990 $2,142 $2,728 $3,077 $3,088 81% 81% 78% 80% 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 (Dollars in Millions) Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total Loans 16
Slide 17: Loan Composition as of December 31, 2020
Loan Composition as of December 31, 2020 Total Loans $3,088.1 million Construction & Development Loans, $ 198.9 million, 6% Agricultural Loans, $ 385.4 million, 12% Commercial Real Estate Owner Occupied, $ 361.0 million, 12% Commercial Real Estate Non-Owner Occupied, $ 729.0 million, 24% Multi-Famil
Slide 18: Non-Performing Assets to Total Assets
0.14% 0.38% 0.34% 0.33% 0.44% 0.76% 0.63% 0.59% 0.56% 0.51%* 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 Non-Performing Assets to Total Assets GABC Peer Group *Peer Group Information as of 09/30/20 18
Slide 19: Total Deposits
$2,350 $2,484 $3,073 $3,430 $4,107 84% 84% 81% 82% 88% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 (Dollars in Millions) Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits 19
Slide 20: Deposit Composition as of December 31, 2020
Non-Interest Bearing Demand, $1,183.4 million, 29% Interest Bearing Demand, Savings & Money Market, $2,428.6 million, 59% Time Deposits, $494.5 million, 12% Deposit Composition as of December 31, 2020 Total Deposits $4,106.5 million 20 Year Cost of Deposits Cost of Funds 2016 0.23% 0.32% 2017 0.30%
Slide 21: Shareholders' Equity and Return on Tangible Equity
$330 $365 $459 $574 $625 13.02% 13.82% 14.82% 14.98% 13.46% $- $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 (Dollars in Millions) Total Shareholders’ Equity Annualized Return on Tangible Equity 21
Slide 22: Net Interest Income and Net Interest Margin
$94,904 $99,909 $114,610 $145,225 $155,243 3.75% 3.76% 3.75% 3.92% 3.63% $- $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 (Dollars in Thousands) Net Interest Income Net Interest Margin (Tax-Equivalent) 22
Slide 23: Provision for Credit Losses and Net Charge-offs
$1,200 $1,750 $2,070 $5,325 $17,550 0.04% 0.04% 0.08% 0.17% 0.08% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 $14,000 $15,000 $16,000 $17,000 $18,000 $19,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 (Dollars in Thousands) Provision for Credit
Slide 24: Non-Interest Income
$32,013 $31,854 $37,070 $45,501 $54,474 24% 23% 24% 24% 26% $- $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 (Dollars in Thousands) Non-Interest Income Non-Interest Income as % of Total Revenue 24
Slide 25: Non-Interest Expense and Efficiency Ratio
$76,587 $77,803 $93,553 $114,162 $117,123 58.3% 56.8% 60.6% 59.0% 55.0% $- $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 (Dollars in Thousands) Non-Interest Expense Efficiency Ratio 25
Slide 26: Net Income & Earnings Per Share
$35,184 $40,676 $46,529 $59,222 $62,210 $1.57 $1.77 $1.99 $2.29 $2.34 $- $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 (Dollars in Thousands, Except Per Share Amounts) Net Income & Earnings Per Share Earnings Per Share* *Earnings Per Share adjus
Slide 27: Why Invest in GABC?
Why Invest in GABC? 27
Slide 28: GABC Earnings Per Share Growth
$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 Why Invest in GABC? 28
Slide 29: GABC Tangible Book Value Per Share
$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 29
Slide 30: GABC Stock Price Appreciation
$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 30
Slide 31: Why Invest in GABC?
• 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 • Infrastructure in Place for P
Slide 32: German American Bancorp, Inc.
German American Bancorp, Inc. 32 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