German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — Keefe, Bruyette & Woods Community Bank Investor Conference 2017
30 slides from German American Bancorp's conference presentation, Aug 1, 2017
Slide 1: KBW Community Bank Investor Conference
Symbol: GABC August 1, 2017 Keefe, Bruyette & Woods – Community Bank Investor Conference
Slide 2: Presented By
Presented By Mark A. Schroeder Chairman and CEO Bradley M. Rust EVP 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: Who We Are
Southern Indiana Community-focused Financial Services Organization • $3.0 Billion Total Banking Assets • $1.2 Billion Investment & Trust Assets Under Management • Banking, Insurance, Investments & Trust • $60 Million Annual Insurance Premiums Who We Are • 52 Branch 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: County Unemployment Rates
County Unemployment Rates | Non Seasonally Adjusted s. a pment Statistics May 2010 June 2017
Slide 7: Capitalize upon Market Strength & Growth
Capitalize upon Market Strength & Growth 7
Slide 8: Capitalize upon Market Strength & Growth
Capitalize upon Market Strength & Growth 8
Slide 9: Capitalize upon Market Strength & Growth
Capitalize upon Market Strength & Growth 9
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: Net Income & Earnings Per Share
$24,055 $25,413 $28,344 $30,064 $35,184 $14,934 $19,395 $1.27 $1.32 $1.43 $1.51 $1.57 $0.68 $0.85 $- $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 6/30/16 YTD 6/30/17 YTD (Dollars in Thousands, Except Per Share Amounts) Net Income & Earni
Slide 13: Total Assets and Return on Assets
$2,006 $2,164 $2,237 $2,374 $2,956 $3,005 1.24% 1.25% 1.31% 1.33% 1.24% 1.32% $- $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 6/30/17 YTD (Dollars in Millions) Total Assets Annualized Return on Assets 13
Slide 14: Total Loans
$1,205 $1,382 $1,448 $1,564 $1,990 $2,032 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 06/30/17 (Dollars in Millions) Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total Loans 14
Slide 15: Loan Portfolio Composition
Construction & Development Loans, $ 79.9 million, 4% Agricultural Loans, $ 312.5 million, 15% Multi-Family Residential Properties, $ 121.7 million, 6% Commercial Real Estate Non- Owner Occupied, $ 503.9 million, 25% Commercial Real Estate Owner Occupied, $ 183.6 million, 9% Commercial & Industrial L
Slide 16: Non-Performing Assets to Total Assets
0.60% 0.44% 0.29% 0.15% 0.14% 0.15% 2.15% 1.45% 1.04% 0.84% 0.76% 0.71%* 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 06/30/17 Non- Performing Assets to Total Assets GABC Peer Group 16 * Peer Group Information as of 3/31/17
Slide 17: Net Charge-offs to Average Loans
0.19% 0.10% -0.01% 0.03% 0.04% 0.03% 0.59% 0.25% 0.15% 0.08% 0.10% 0.05%* -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 6/30/2017 YTD Net Charge-offs to Average Loans GABC Peer Group 17 * Peer Group Information as of 3/31/17
Slide 18: Total Deposits
$1,641 $1,812 $1,780 $1,826 $2,350 $2,363 80% 81% 81% 83% 84% 85% $- $500 $1,000 $1,500 $2,000 $2,500 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 06/30/17 (Dollars in Millions) Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits 18
Slide 19: Total Deposit Composition
Non-Interest Bearing Demand, $557.5 million, 24% Interest Bearing Demand, Savings & Money Market, $1,453.5 million, 61% Time Deposits, $352.3 million, 15% 19 Total Deposit Composition as of June 30, 2017 Cost of Funds 2012 0.60% 2013 0.37% 2014 0.30% 2015 0.28% 2016 0.32% 6/30/17 YTD 0.36% Total Dep
Slide 20: Shareholders' Equity and Return on Equity
$185 $200 $229 $252 $330 $355 13.57% 13.40% 13.21% 12.47% 10.94% 11.36% $- $50 $100 $150 $200 $250 $300 $350 $400 12/31/12 12/31/13 12/31/14 12/31/15 12/31/16 6/30/17 YTD (Dollars in Millions) Total Shareholders’ Equity Annualized Return on Equity 20
Slide 21: Net Interest Income and Net Interest Margin
$67,819 $70,319 $76,991 $79,072 $99,470 $47,602 $52,099 3.74% 3.67% 3.76% 3.70% 3.75% 3.75% 3.82% $- $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 6/30/16 YTD 6/30/17 YTD (Dollars in Thousands) Net Interest Income (Tax-Equivalent) Net Interest Margin
Slide 22: Non-Interest Income
$21,811 $23,615 $23,937 $27,444 $32,013 $15,272 $15,985 24% 25% 24% 26% 24% 24% 23% $- $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 6/30/16 YTD 6/30/17 YTD (Dollars in Thousands) Non-Interest Income Non-Interest Income as % of Total Revenue 22
Slide 23: Non-Interest Expense and Efficiency Ratio
23 $50,923 $54,905 $57,713 $61,326 $76,587 $38,579 $38,032 56.8% 58.5% 57.2% 57.6% 58.3% 61.4% 55.9% $- $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 6/30/16 YTD 6/30/17 YTD (Dollars in Thousands) Non-Interest Expense Efficiency
Slide 24: Net Income & Earnings Per Share
$24,055 $25,413 $28,344 $30,064 $35,184 $14,934 $19,395 $1.27 $1.32 $1.43 $1.51 $1.57 $0.68 $0.85 $- $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 6/30/16 YTD 6/30/17 YTD (Dollars in Thousands, Except Per Share Amounts) Net Income & Earni
Slide 25: Why Invest in GABC?
Why Invest in GABC? 25
Slide 26: 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 * 26 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 27: GABC Tangible Book Value Per Share
$6.55 $7.65 $8.63 $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 27 *Tangible Book Value Per Share adjusted for 3-for-2 stock split completed in 2017 *
Slide 28: 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 28 *Stock Price adjusted for 3-for-2 stock split completed in 2017 *
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: Contact
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 30
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