German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — Keefe, Bruyette & Woods Community Bank Investor Conference 2016
32 slides from German American Bancorp's conference presentation, Aug 2, 2016
Slide 1: KBW Community Bank Investor Conference August 2016
Symbol: GABC August 2016 Keefe, Bruyette & Woods Community Bank Investor Conference
Slide 2: Presented By
Presented By Mark A. Schroeder Chairman and CEO Bradley M. Rust Executive VP and CFO 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: Southern Indiana Community-focused Financial Services Organization
4 Southern Indiana Community-focused Financial Services Organization • $2.9 Billion Total Banking Assets • $504 Million Brokerage Assets Under Management • $56 Million Annual Insurance Premiums • Banking, Insurance, Investments & Trust • $529 Million Trust Assets Under Management Who We Are • 600 FT
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 Rates by County
Unemployment Rates by County County Unemployment Rates June 2016 - Non Seasonally Adjusted WoitkFace
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* $ 4,211,207 30% #1 27 Evansville/Newburgh $ 4,002,310 9% #3 6 Bloomington $ 2,044,647 8% #5 3 Columbus $ 1,101,423 1% #9 1 Louisville MSA (Indiana Portion)** $
Slide 8: Heritage Markets deposit share
*Heritage Markets 2015 2005 2015 # of Offices (millions) Deposits Share Deposits Share Increase 1 German American $ 1,257 29.8% $ 700 19.3% 79.6% 27 2 Old National Bank $ 929 22.0% $ 1,336 37.7% - 30.5% 17 3 Fifth Third Bank $ 465 11.0% $ 393 10.8% 18.3% 10 Market Total $ 4,211 $ 3,623 16.2% 8 Herit
Slide 9: History of Superior Financial Performance
History of Superior Financial Performance 9 2010 through 2015 Six Years of Consecutive Record Earnings Performance Double-Digit Return on Equity for Past 11 Consecutive Fiscal Years (13%+ROE 2012 through 2014) 2009 through 2011 and 2013 through 2015 Highest Performing (Return on Equity) among Indian
Slide 10: Financial Trends
Financial Trends 10
Slide 11: Net Income & Earnings Per Share
$20,249 $24,055 $25,413 $28,344 $30,064 $14,631 $14,934 $17,546 $1.61 $1.90 $1.98 $2.14 $2.27 $1.10 $1.02 $1.20 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 6/30/15 YTD 6/30/16 YTD 6/30/16 YTD * (Dollars in Thousands) Net Income & Earnings Pe
Slide 12: Total Assets and Return on Assets
$1,874 $2,006 $2,164 $2,237 $2,374 $2,916 1.11% 1.24% 1.25% 1.31% 1.33% 1.10% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 6/30/16 YTD (Dollars in Thousands) Total Assets Annualized Return on Assets 12
Slide 13: Total Loans
$1,121 $1,205 $1,382 $1,448 $1,564 $1,961 81% 83% 81% 81% 82% 81% $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 6/30/16 YTD (Dollars in Millions) Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total L
Slide 14: Loan Portfolio Composition
Construction & Development Loans, $ 55.2 million, 3% Agricultural Loans, $ 285.5 million, 15% Multi-Family Residential Properties, $ 124.6 million, 6% Commercial Real Estate Non- Owner Occupied, $ 470.8 million, 24% Commercial Real Estate Owner Occupied, $ 203.6 million, 10% Commercial & Industrial
Slide 15: Non-Performing Assets to Total Assets
1.08% 0.60% 0.44% 0.29% 0.15% 0.33% 3.08% 2.15% 1.45% 1.04% 0.89% 0.83% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 06/30/16 Non- Performing Assets to Total Assets GABC Peer Group 15 * Peer Group Information as of 3/31/16 *
Slide 16: Net Charge-offs to Average Loans
0.43% 0.19% 0.10% -0.01% 0.03% 0.04% 0.88% 0.59% 0.25% 0.15% 0.08% 0.07% -0.05% 0.20% 0.45% 0.70% 0.95% 1.20% 1.45% 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 06/30/16 Net Charge-offs to Average Loans GABC Peer Group 16 * Peer Group Information as of 3/31/16 *
Slide 17: Total Deposits
$1,556 $1,641 $1,812 $1,780 $1,826 $2,277 76% 80% 81% 81% 83% 83% $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 $2,400 $2,600 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 06/30/16 (Dollars in Millions) Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits 17
Slide 18: Total Deposit Composition
Non-Interest Bearing Demand, $506.5 million, 22% Interest Bearing Demand, Savings & Money Market, $1,380.1 million, 61% Time Deposits, $390.8 million, 17% 18 Total Deposit Composition as of June 30, 2016 Cost of Funds 2011 0.95% 2012 0.60% 2013 0.37% 2014 0.30% 2015 0.28% 6/30/16 YTD 0.32% Total Dep
Slide 19: Shareholders' Equity and Return on Equity
$168 $185 $200 $229 $252 $332 12.67% 13.57% 13.40% 13.21% 12.47% 9.79% $- $50 $100 $150 $200 $250 $300 $350 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 6/30/16 YTD (Dollars in Millions) Total Shareholders’ Equity Annualized Return on Equity 19
Slide 20: Net Interest Income and Net Interest Margin
$65,202 $67,819 $70,319 $76,991 $79,072 $38,882 $47,602 3.84% 3.74% 3.67% 3.76% 3.70% 3.72% 3.75% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 6/30/15 YTD 6/30/16 YTD (Dollars in Thousands) Net Interest Income (Tax-Equivalent
Slide 21: Non-Interest Income
$21,576 $21,811 $23,615 $23,937 $27,444 $13,263 $15,272 25% 24% 25% 24% 26% 25% 24% $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 6/30/15 YTD 6/30/16 YTD (Dollars in Thousands) Non-Interest Income Non-Interest Income as % of Total Revenue 21
Slide 22: Non-Interest Expense and Efficiency Ratio
$50,782 $50,923 $54,905 $57,713 $61,326 $29,148 $38,579 $34,450 58.5% 56.8% 58.5% 57.2% 57.6% 55.9% 61.4% 54.8% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 6/30/15 YTD 6/30/16 YTD 6/30/16 YTD* (Dollars in Thousands) Non-Interest Expense Eff
Slide 23: Net Income & Earnings Per Share
$20,249 $24,055 $25,413 $28,344 $30,064 $14,631 $14,934 $17,546 $1.61 $1.90 $1.98 $2.14 $2.27 $1.10 $1.02 $1.20 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 12/31/11 12/31/12 12/31/13 12/31/14 12/31/15 6/30/15 YTD 6/30/16 YTD 6/30/16 YTD * (Dollars in Thousands) Net Income & Earnings Pe
Slide 24: Why Invest in GABC?
Why Invest in GABC? 24
Slide 25: Return on Shareholders' Equity
11.56% 10.04% 12.84% 11.12% 11.18% 12.67% 13.57% 13.40% 13.21% 12.47% GABC Return on Shareholders’ Equity Why Invest in GABC? 25 As of 12/31 for years shown
Slide 26: Earnings Per Share Growth
$0.93 $0.85 $1.16 $1.10 $1.21 $1.61 $1.90 $1.98 $2.14 $2.27 GABC Earnings Per Share Growth 26 As of 12/31 for years shown Why Invest in GABC?
Slide 27: Tangible Book Value Per Share
$9.14 $9.82 $11.47 $12.94 $13.38 $15.60 $17.36 GABC Tangible Book Value Per Share Why Invest in GABC? As of 12/31 for years shown 27
Slide 28: Stock Price Appreciation
$16.25 $18.42 $18.19 $21.72 $28.42 $30.52 $33.32 GABC Stock Price Appreciation Why Invest in GABC? As of 12/31 for years shown 28
Slide 29: Why Invest in GABC?
Focus on 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 Platform fo
Slide 30: Why Invest in GABC? Peer ROE comparison
2015 ROE ≥ 12% 3 Institutions (including German American) Source: SNL Financial. Financial data is as of December 31, 2015. All U.S. Exchange-Traded Depositories 422 Institutions ROE ≥ 10% for the past 10 years 11 Institutions Consecutive increases in EPS for past 5 years 3 Institutions 30 Why Inves
Slide 31: Non-GAAP Disclosure Reconciliation
31 German American Bancorp, Inc. Non-GAAP Disclosure Reconciliation These materials contain certain financial measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The slide presentation furnished herewith uses
Slide 32: Contact details
Mark A. Schroeder, Chairman and CEO (812) 482-0701 mark.schroeder@germanamerican.com 32 Bradley M. Rust, Executive VP and CEO (812) 482-0718 brad.rust@germanamerican.com
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