German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — Non-Deal Roadshow (November 2017)
28 slides from German American Bancorp's roadshow presentation, Nov 2, 2017
Slide 1: November 2017 Investor Meeting
Symbol: GABC November 2017 Investor Meeting
Slide 2: Presented By
Presented By 2 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
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: Southern Indiana Community-focused Financial Services Organization
Southern Indiana Community-focused Financial Services Organization • $3.1 Billion Total Banking Assets • $1.2 Billion Investment & Trust Assets Under Management • Banking, Insurance, Investments & Trust • $60 Million Annual Insurance Premiums Who We Are • 53 Banking Offices • 600+ FTEs 4
Slide 5: Diversified Economic Base
Diversified Economic Base Regional Education & Health Care Life Sciences & Technology Agriculture, Manufacturing & Logistics MAJOR EMPLOYERS: Education Indiana University University of Southern Indiana Vincennes University Greater Clark County School Corp Evansville Vanderburgh County School Corp Mo
Slide 6: Unemployment Rate
neal est Unemployment Rate County Unemployment Rates Lover Than Us § y Adjusted wo, Higher Than US. Rate F a May 2010 September 2017 Cs q Indiana Non-Seasonaly Indiana Non-Seasonaly Adjusted Rate 9.7% Adjusted Rate 3.69% Indiana Seasonally Indiana Seasonally Adjusted Rate 10.096 Adjusted Rate 3.8% U
Slide 7: Capitalize upon Market Strength & Growth
Small MSA Market Expansion Market Total Market Deposits GABC Deposit Market Share*** Market Share Position # of Branches Heritage Markets* $ 4,992,622 32% #1 31 Evansville/Newburgh $ 4,198,662 9% #3 7 Bloomington $ 2,399,939 8% #4 3 Columbus $ 1,204,599 2% #9 1 Louisville MSA (Indiana Portion)** $ 3
Slide 8: Heritage Markets Deposit Share
*Heritage Markets 2017 2007** 2017 # of Offices (millions) Deposits Share Deposits Share Increase 1 German American $ 1,612 32.3% $ 1,129 26.0% 42.8% 31 2 Old National Bank $ 1,063 21.3% $ 1,354 31.2% - 21.5% 16 3 Fifth Third Bank $ 456 9.1% $ 452 10.4% 0.9% 9 Market Total $ 4,993 $ 4,340 15.0% * He
Slide 9: Evansville/Newburgh Markets Deposit Share
Evansville/Newburgh Markets 2017 2007* 2017 # of Offices (millions) Deposits Share Deposits Share Increase 1 Old National Bank $ 1,690 40.3% $ 2,228 53.8% -24.1% 14 2 Fifth Third Bank $ 1,208 28.8% $ 1,184 28.6% 2.0% 12 3 German American $ 395 9.4% $ 271 6.5% 45.8% 7 Market Total $ 4,199 $ 4,140 1.4
Slide 10: History of Superior Financial Performance
History of Superior Financial Performance 10 Seven Years of Consecutive Record Earnings Performance Double-Digit Return on Equity for Past 12 Consecutive Fiscal Years Highest Performing Indiana-Domiciled Exchange-Traded Financial Institution (Return on Equity) for 6 Out of the Past 8 Years Consisten
Slide 11: Financial Trends
Financial Trends 11
Slide 12: Total Assets and Annualized Return on Assets
$2,006 $2,164 $2,237 $2,374 $2,956 $3,073 1.24% 1.25% 1.31% 1.33% 1.24% 1.30% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 9/30/17 YTD (Dollars in Millions) Total Assets Annualized Return on Assets 12
Slide 13: Total Loans, Net of Unearned Income
$1,205 $1,382 $1,448 $1,564 $1,990 $2,086 83% 81% 81% 82% 81% 81% $- $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 09/30/17 (Dollars in Millions) Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total Loans 13
Slide 14: Loan Portfolio Composition
Construction & Development Loans, $ 94.9 million, 4% Agricultural Loans, $ 326.5 million, 16% Multi-Family Residential Properties, $ 126.6 million, 6% Commercial Real Estate Non- Owner Occupied, $ 514.4 million, 25% Commercial Real Estate Owner Occupied, $ 184.5 million, 9% Commercial & Industrial L
Slide 15: Non-Performing Assets to Total Assets
0.60% 0.44% 0.29% 0.15% 0.14% 0.33% 2.15% 1.45% 1.04% 0.84% 0.76% 0.51%* 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 09/30/17 Non- Performing Assets to Total Assets GABC Peer Group 15 * Peer Group Information as of 06/30/17
Slide 16: Net Charge-offs to Average Loans
0.19% 0.10% -0.01% 0.03% 0.04% 0.04% 0.59% 0.25% 0.15% 0.08% 0.10% 0.07%* -0.10% 0.15% 0.40% 0.65% 0.90% 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 09/30/17 Net Charge-offs to Average Loans GABC Peer Group 16 * Peer Group Information as of 06/30/17
Slide 17: Total Deposits
$1,641 $1,812 $1,780 $1,826 $2,350 $2,425 80% 81% 81% 83% 84% 84% $- $500 $1,000 $1,500 $2,000 $2,500 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 09/30/17 (Dollars in Millions) Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits 17
Slide 18: Total Deposit Composition and Cost of Funds
Non-Interest Bearing Demand, $589.3 million, 24% Interest Bearing Demand, Savings & Money Market, $1,454.1 million, 60% Time Deposits, $381.2 million, 16% 18 Total Deposit Composition as of September 30, 2017 Cost of Funds 2012 0.60% 2013 0.37% 2014 0.30% 2015 0.28% 2016 0.32% 09/30/17 YTD 0.38% Tot
Slide 19: Total Shareholders' Equity and Return on Equity
$185 $200 $229 $252 $330 $361 13.57% 13.40% 13.21% 12.47% 10.94% 11.16% $- $50 $100 $150 $200 $250 $300 $350 $400 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 09/30/17 YTD (Dollars in Millions) Total Shareholders’ Equity Annualized Return on Equity 19
Slide 20: Net Interest Income and Net Interest Margin
$67,819 $70,319 $76,991 $79,072 $99,470 $73,354 $78,306 3.74% 3.67% 3.76% 3.70% 3.75% 3.75% 3.78% $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 09/30/16 YTD 09/30/17 YTD (Dollars in Thousands) Net Interest Income (Tax-Equivalent) Net Interest Margi
Slide 21: Non-Interest Income
$21,811 $23,615 $23,937 $27,444 $32,013 $23,656 $24,260 24% 25% 24% 26% 24% 24% 24% $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 09/30/16 YTD 09/30/17 YTD (Dollars in Thousands) Non-Interest Income Non-Interest Income as % of Total Revenue 21
Slide 22: Non-Interest Expense and Efficiency Ratio
22 $50,923 $54,905 $57,713 $61,326 $76,587 $57,232 $57,803 56.8% 58.5% 57.2% 57.6% 58.3% 59.0% 56.4% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 09/30/16 YTD 09/30/17 YTD (Dollars in Thousands) Non-Interest Expense Efficienc
Slide 23: Net Income & Earnings Per Share
$24,055 $25,413 $28,344 $30,064 $35,184 $25,119 $29,055 $1.27 $1.32 $1.43 $1.51 $1.57 $1.13 $1.27 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 9/30/16 YTD 9/30/17 YTD (Dollars in Thousands, Except Per Share Amounts) Net Income & Earni
Slide 24: Why Invest in GABC?
Why Invest in GABC? 24
Slide 25: GABC Earnings Per Share Growth
$0.57 $0.77 $0.73 $0.81 $1.07 $1.27 $1.32 $1.43 $1.51 1.57 GABC Earnings Per Share Growth * 25 As of 12/31 for years shown Why Invest in GABC? *Earnings Per Share adjusted for 3-for-2 stock split completed in 2017
Slide 26: GABC Tangible Book Value Per Share
$6.55 $7.64 $8.62 $8.92 $10.40 $11.57 $11.94 GABC Tangible Book Value Per Share Why Invest in GABC? As of 12/31 for years shown 26 *Tangible Book Value Per Share adjusted for 3-for-2 stock split completed in 2017 *
Slide 27: GABC Stock Price Appreciation
$12.28 $12.13 $14.48 $18.95 $20.35 $22.21 $35.07 GABC Stock Price Appreciation Why Invest in GABC? As of 12/31 for years shown 27 *Stock Price adjusted for 3-for-2 stock split completed in 2017 *
Slide 28: 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
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