German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — Keefe Bruyette & Woods Community Bank Investor Conference 2019
27 slides from German American Bancorp's conference presentation, Jul 30, 2019
Slide 1: German American at KBW Community Bank Investor Conference
German American Symbol: GABC July 30-31, 2019 Keefe Bruyette & Woods Community Bank Investor Conference
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 Indiana & Kentucky Community-focused Financial Services Organization • Banking, Insurance, Investments & Trust • $4.4 Billion Total Banking Assets • $1.6 Billion Investment and Trust Assets Under Management • $60 Million Annual Insurance Premiums • 850+ FTEs • 75 Banking Offices 4
Slide 5: Diversified Economic Base: Indiana
Diversified Economic Base Regional Education & Health Care Life Sciences & Technology Agriculture, Manufacturing & Logistics Manufacturing & Logistics MAJOR INDIANA EMPLOYERS: Aisin U.S.A. MFG, Inc. Education ALCOA Warrick Operations Life Sciences & Technology Indiana University Amazon Fulfillment S
Slide 6: Diversified Economic Base: Kentucky
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: 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 8: 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 13% #3 6 Lexington $ 7,403,387 .5% #20 2 Total Kentucky $ 12,879,552 Grow
Slide 9: 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 10: Financial Trends
Financial Trends 10
Slide 11: Total Assets and Annualized Return on Assets
Total Assets Annualized Return on Assets $3,971 $4,000 $3,929 $3,500 $3,144 $2,956 $3,000 $2,500 $2,374 $2,237 $2,000 $1,500 1.56% 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 06/30/19 (Dollars in Millions) 11
Slide 12: Total Loans, Net of Unearned Income
Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total Loans $3,000 $2,728 $2,717 $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 06/30/19 (Dollars in
Slide 13: Loan Portfolio Composition
Loan Portfolio Composition As of June 30, 2019 Total Loans $2,717 million Construction & Residential Mortgage Loans, Development Loans, $ 309.6 million, 11% $ 139.8 million, 5% Home Equity Loans, Agricultural Loans, $ 205.6 million, 8% $ 363.5 million, 13% Consumer Loans, $ 69.2 million, 3% Commerci
Slide 14: 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% 0.45%* 0.50% 0.29% 0.15% 0.14% 0.38% 0.34% 0.32% 0.00% 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 06/30/19 GABC Peer Group *Peer Group Information as of 3/31/19 14
Slide 15: Total Deposits
Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits $3,500 $3,073 $3,129 $3,000 $2,484 $2,500 $2,350 $2,000 $1,780 $1,826 $1,500 83% 84% 84% 81% 81% 81% $1,000 $500 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 06/30/19 (Dollars in Millions) 15
Slide 16: Total Deposit Composition
Total Deposit Composition as of June 30, 2019 Total Deposits $3,129 million Non-Interest Bearing Demand, $725.3 million, 23% Interest Bearing Demand, Savings & Money Market, $1,805.7 million, 58% Cost of Funds 2014 0.30% 2015 0.28% 2016 0.32% 2017 0.40% Time Deposits, $597.8 million, 2018 0.61% 19%
Slide 17: Total Shareholders' Equity and Return on Equity
Total Shareholders’ Equity Annualized Return on Equity $499 $500 $459 $450 $400 $365 $350 $330 $300 $252 $250 $229 $200 13.21% 12.78% 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 06/30/19 (Dollars in Millions) 17
Slide 18: 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 $68,653 $60,000 3.76% 3.75% 3.76% 3.75% $54,403 3.70% $40,000 3.71% 3.86% $20,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 06/30/18 06/30/19 YTD YTD (Dollars i
Slide 19: 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 $22,167 $20,000 $18,374 26% 24% 24% 24% $15,000 23% $10,000 25% 24% $5,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 06/30/18 06/30/19 YTD YTD (Dollars in Thous
Slide 20: 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 $52,377 $50,000 60.6% $42,163 $40,000 58.3% 57.2% 57.6% $30,000 56.8% 57.9% 57.7% $20,000 $10,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 06/30/18 06/30/19 YTD YTD (Dollars
Slide 21: 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 $30,338 $30,000 $28,344 $25,000 $22,910 $1.99 $1.77 $20,000 $1.57 $1.51 $1.43 $15,000 $1.21 $1.00 $10,000 $5,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 06/30/18 06/30/19 YTD Y
Slide 22: Why Invest in GABC?
Why Invest in GABC? 22
Slide 23: 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 23
Slide 24: 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 24
Slide 25: 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 25
Slide 26: 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 27: Contact: Mark A. Schroeder and Bradley M. Rust
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 27
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