German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — Investor Presentation (December 2019)
26 slides from German American Bancorp's investor presentation, Dec 11, 2019
Slide 1: German American Symbol: GABC December 2019
German American Symbol: GABC December 2019
Slide 2: 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 3: 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 3
Slide 4: Diversified Economic Base: Major Indiana Employers
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 5: 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 6: 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* $ 5,300,573 34% #1 31 Evansville/Newburgh $ 4,830,382 10% #3 8 Bloomington $ 2,474,524 9% #4 3 Columbus $ 1,2
Slide 7: 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 $ 2,719,563 5% #6 3 Bowling Green $ 2,679,918 10% #4 6 Lexington $ 7,899,671 .2% #25 2 Total Kentucky $ 13,299,152 Grow
Slide 8: 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 9: Financial Trends
rs Financial Trends
Slide 10: Total Assets and Annualized Return on Assets
Total Assets Annualized Return on Assets $5,000 $4,500 $4,356 $3,929 $4,000 $3,500 $3,144 $2,956 $3,000 $2,374 $2,500 $2,237 $2,000 1.43% 1.33% 1.35% 1.38% 1.31% 1.24% $1,500 $1,000 $500 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 09/30/19 (Dollars in Millions) 10
Slide 11: Total Loans, Net of Unearned Income
Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total Loans $3,250 $3,057 $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% 80% $750 $500 $250 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 09/30/19 (Dol
Slide 12: Loan Portfolio Composition as of September 30, 2019
Loan Portfolio Composition as of September 30, 2019 Total Loans $3,056.2 million Construction & Development Loans, Residential Mortgage Loans, $182.4 million, 6% $315.9 million, 11% Home Equity Loans, Agricultural Loans, $223.1 million, 7% $396.8 million, 13% Consumer Loans, $68.1 million, 2% Commer
Slide 13: 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% 0.46%* 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 09/30/19 GABC Peer Group *Peer Group Information as of 6/30/19 13
Slide 14: Total Deposits
Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits $3,500 $3,431 $3,073 $3,000 $2,484 $2,500 $2,350 $2,000 $1,780 $1,826 $1,500 83% 84% 84% 81% 81% 80% $1,000 $500 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 09/30/19 (Dollars in Millions) 14
Slide 15: Total Deposit Composition as of September 30, 2019
Total Deposit Composition as of September 30, 2019 Total Deposits $3,431 million Non-Interest Bearing Demand, $827.3 million, 24% Interest Bearing Demand, Savings & Money Market, $1,910.4 million, 56% Cost of Funds 2014 0.30% 2015 0.28% 2016 0.32% 2017 0.40% 2018 0.61% Time Deposits, $693.6 million,
Slide 16: Total Shareholders' Equity and Annualized Return on Equity
Total Shareholders’ Equity Annualized Return on Equity $600 $563 $550 $500 $459 $450 $400 $365 $350 $330 $300 $252 $250 $229 13.21% $200 12.47% 12.07% 11.52% 10.94% 11.59% $150 $100 $50 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 09/30/19 (Dollars in Millions) 16
Slide 17: Net Interest Income and Net Interest Margin
Net Interest Income Net Interest Margin (Tax-Equivalent) $140,000 $120,000 $117,345 $105,057 $107,964 $99,470 $100,000 $83,643 $79,072 $80,000 $76,991 $60,000 3.76% 3.75% 3.76% 3.75% 3.70% 3.89% 3.72% $40,000 $20,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 09/30/18 09/30/19 YTD YTD (Dollars
Slide 18: Non-Interest Income
Non-Interest Income Non-Interest Income as % of Total Revenue $40,000 $37,070 $35,000 $34,223 $32,013 $31,854 $30,000 $27,444 $27,337 $25,000 $23,937 $20,000 26% 24% 24% 24% $15,000 23% 25% 24% $10,000 $5,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 09/30/18 09/30/19 YTD YTD (Dollars in Thous
Slide 19: Non-Interest Expense and Efficiency Ratio
Non-Interest Expense Efficiency Ratio $100,000 $93,553 $90,000 $84,338 $80,000 $76,587 $77,803 $70,000 $61,326 $63,739 $60,000 $57,713 $50,000 60.6% $40,000 58.3% 57.2% 57.6% 59.3% $30,000 56.8% 57.4% $20,000 $10,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 09/30/18 09/30/19 YTD YTD (Dollars
Slide 20: Net Income & Earnings Per Share
Net Income & Earnings Per Share Earnings Per Share* $50,000 $46,529 $45,000 $43,402 $40,676 $40,000 $35,184 $35,549 $35,000 $30,064 $30,000 $28,344 $25,000 $1.99 $1.77 $20,000 $1.57 $1.70 $1.51 $1.55 $1.43 $15,000 $10,000 $5,000 $- 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18 09/30/18 09/30/19 YTD Y
Slide 21: Why Invest in GABC?
Why Invest in GABC? 21
Slide 22: 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 22
Slide 23: 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 23
Slide 24: 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 24
Slide 25: 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 • Existin
Slide 26: 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 26
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