German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — Janney CEO Forum 2022
28 slides from German American Bancorp's conference presentation, Feb 2, 2022
Slide 1: German American, Janney CEO Forum
German American Symbol: GABC February 2 – 3, 2022 Janney CEO Forum
Slide 2: Presented By
Presented By 2 Mark A. Schroeder, Executive Chairman (812) 482-0701 mark.schroeder@germanamerican.com D. Neil Dauby, President and Chief Executive Officer (812) 482-0707 neil.dauby@germanamerican.com Bradley M. Rust, Sr. EVP, COO 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: Who We Are
Who We Are Indiana & Kentucky Community-focused Financial Services Organization • Banking, Insurance, Investments & Trust • $6.5 Billion Total Banking Assets • $2.3 Billion Investment and Trust Assets Under Management • $70 Million Annual Insurance Premiums • ~ 950 Team Members • 78 Banking Offices
Slide 5: Capitalize upon Market Strength & Growth: Indiana MSA Market Expansion
5 Capitalize upon Market Strength & Growth Indiana MSA Market Expansion Market Total Market Deposits($000) GABC Deposit Market Share*** Market Share Position*** # of Branches*** Heritage Markets* $ 6,529,499 35% #1 27 Growth Markets: Evansville/Newburgh $ 6,700,611 9% #3 8 Bloomington $ 3,412,353 11
Slide 6: Capitalize upon Market Strength & Growth: Kentucky MSA Market Expansion
6 Capitalize upon Market Strength & Growth Kentucky MSA Market Expansion Market Total Market Deposits (000’s) GABC Deposit Market Share*** Market Share Position*** # of Branches*** Smaller Kentucky Markets * $ 5,106,979 9% #3 10 Growth Markets: Owensboro $ 3,015,787 5% #6 3 Bowling Green $ 3,535,230
Slide 7: History of Superior Financial Performance
H is to ry o f S u p e ri o r F in a n ci a l P e rf o rm a n ce - Ten Consecutive Years of Increased Dividends - Twelve Years of Consecutive Record Earnings Performance - Double-Digit Return on Equity for Past 17 Consecutive Fiscal Years - Bank Director Magazine - Bank Performance Scorecard Top 15
Slide 8: Financial Trends
FINANCIAL TRENDS 8
Slide 9: Total Assets and Return on Assets
$3,144 $3,929 $4,398 $4,978 $5,609 1.35% 1.38% 1.43% 1.32% 1.57% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 (Dollars in Millions) Total Assets Annualized Return on Assets 9
Slide 10: Total Loans and Commercial & Agricultural Mix
$2,142 $2,728 $3,077 $3,088 $3,004 81% 78% 80% 82% 81% $- $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 $2,750 $3,000 $3,250 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 (Dollars in Millions) Total Loans, Net of Unearned Income Commercial & Agricultural Loans as % of Total Loans 10
Slide 11: Loan Portfolio Composition
Total Loans $3,004.3 million Loan Portfolio Composition As of December 31, 2021 11 Construction & Development Loans, $ 214.6 million, 7% Agricultural Loans, $ 367.6 million, 12% Commercial Real Estate Owner Occupied, $ 397.0 million, 13% Commercial Real Estate Non- Owner Occupied, $ 744.8 million, 2
Slide 12: Non-Performing Assets to Total Assets
0.38% 0.34% 0.33% 0.44% 0.26% 0.48% 0.45% 0.45% 0.52% 0.39%* 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 Non-Performing Assets to Total Assets GABC Peer Group 12 *Peer Group as of 09/30/21
Slide 13: Total Deposits and Non-Maturity Deposit Mix
$2,484 $3,073 $3,430 $4,107 $4,744 84% 81% 82% 88% 93% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 (Dollars in Millions) Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits 13
Slide 14: Deposit Composition and Cost of Deposits
Non-Interest Bearing Demand, $1,529.2 million, 32% Interest Bearing Demand, Savings & Money Market, $2,868.0 million, 61% Time Deposits, $347.1 million, 7% Deposit Composition as of December 31, 2021 Total Deposits $4,744.3 million 14 Year Cost of Deposits Cost of Funds 2017 0.30% 0.40% 2018 0.50% 0
Slide 15: Shareholders' Equity and Return on Tangible Equity
$365 $459 $574 $625 $668 13.82% 14.82% 14.98% 13.46% 16.38% $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 $750 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 (Dollars in Millions) Total Shareholders’ Equity Annualized Return on Tangible Equity 15
Slide 16: Net Interest Income and Net Interest Margin
$99,909 $114,610 $145,225 $155,243 $160,830 3.76% 3.75% 3.92% 3.63% 3.31% 3.20% 3.40% 3.60% 3.80% 4.00% 4.20% 4.40% $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 (Dollars in Thousands) Net Interest Income Net Interest Mar
Slide 17: Provision for Credit Losses and Net Charge-offs
$1,750 $2,070 $5,325 $17,550 $(6,500) 0.04% 0.08% 0.17% 0.08% 0.11% $(8,000) $(6,000) $(4,000) $(2,000) $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 (Dollars in Thousands) Provision for Credit Losses Net Charge-off to Ave
Slide 18: Non-Interest Income
$31,854 $37,070 $45,501 $54,474 $59,462 24% 24% 24% 26% 27% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 (Dollars in Thousands) Non-Interest Income Non-Interest Income as % of Total Revenue 18
Slide 19: Non-Interest Expense and Efficiency Ratio
$77,803 $93,553 $114,162 $117,123 $124,007 56.8% 60.6% 59.0% 55.0% 55.1% $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 (Dollars in Thousands) Non-Interest Expense Efficiency Ratio 19
Slide 20: Net Income & Earnings Per Share
$40,676 $46,529 $59,222 $62,210 $84,137 $1.77 $1.99 $2.29 $2.34 $3.17 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 Net Income & Earnings Per Share Earnings Per Share 20
Slide 21: Attractive Addition to Kentucky Franchise
Citizens Union Bancorp’s major Kentucky markets enhance GABC’s overall demographics Attractive Addition to Kentucky Franchise GABC CUB Pro Forma Branch Map 21 Completed M & A- Citizens Union Bank Balance Sheet ($M) GABC CUB Total Assets 5,609$ 1,109$ Total Loans (Excl. HFS) 3,004$ 684$ Total Deposit
Slide 22: Citizens Union Bank Acquisition Rationale
22 • Attractive addition to German American franchise effective January 1, 2022: – Expands GABC’s market share position in the attractive Louisville, KY market (1) • Tripling market share to 2.47%, a top-10 overall market share position in a major metro market • Increases German American’s deposit m
Slide 23: Why Invest in GABC?
WHY INVEST IN GABC? 23
Slide 24: GABC Earnings Per Share Growth
24 Why Invest in GABC? $1.27 $1.32 $1.43 $1.51 $1.57 $1.77 $1.99 $2.29 $2.34 $3.17 GABC Earnings Per Share Growth * As of 12/31 for years shown *Earnings Per Share adjusted for 3-for-2 stock split completed in 2017
Slide 25: GABC Tangible Book Value Per Share
25 $8.62 $8.92 $10.40 $11.57 $11.94 $13.45 $13.81 $16.49 $18.63 $20.37 GABC Tangible Book Value Per Share Why Invest in GABC? * As of 12/31 for years shown *Tangible Book Value Per Share adjusted for 3-for-2 stock split completed in 2017
Slide 26: GABC Stock Price Appreciation
26 $14.48 $18.95 $20.35 $22.21 $35.07 $35.33 $27.77 $35.62 $33.09 $38.98 GABC Stock Price Appreciation Why Invest in GABC? As of 12/31 for years shown * *Stock Price adjusted for 3-for-2 stock split completed in 2017
Slide 27: Why Invest in GABC
Why Invest in GABC 27 • 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 and Large Major Metro Opportunity • Existing Platform
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