German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — DA Davidson 17th Annual Financial Institutions Conference (May 2015)
30 slides from German American Bancorp's conference presentation, May 12, 2015
Slide 1: DA Davidson 17th Annual Financial Institutions Conference
Symbol: GABC May 2015 DA Davidson – 17th Annual Financial Institutions Conference
Slide 2: Presented By
Presented By Mark A. Schroeder Chairman and CEO Bradley M. Rust Executive Vice President 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
4 Southern Indiana Community- focused Financial Services Organization • $2.2 Billion Total Banking Assets • $475 Million Brokerage Assets Under Management • $50 Million Annual Insurance Premiums • Banking, Insurance, Investments & Trust • $400 Million Trust Assets Under Management Who We Are • 482 F
Slide 5: Diversified Economic Base
Diversified Economic Base Regional Education & Health Care Life Sciences & Technology Agriculture & Manufacturing MAJOR EMPLOYERS: Education Indiana University University of Southern Indiana Vincennes University Evansville Vanderburgh County School Corp Monroe County School Corporation Health Care I
Slide 6: County Unemployment Rates
County Unemployment Rates March 2015 - Non Seasonally Adjusted lt it
Slide 7: Small MSA Market Expansion
Small MSA Market Expansion Market Total Market Deposits* GABC Deposit Market Share** Market Share Position # of Branches Heritage Markets* $ 4,138,044 30% #1 27 Evansville/Newburgh $ 3,518,011 10% #3 6 Bloomington $ 1,890,435 9% #4 3 Columbus $ 1,095,140 1% #8 1 7 * Includes the Indiana counties of
Slide 8: Capitalize upon Market Strength & Growth
*Heritage Markets 2014 2004 2014 # of Offices (millions) Deposits Share Deposits Share Increase 1 German American $ 1,249 30.2% $ 809 22.9% 54.4% 27 2 Old National Bank $ 927 22.4% $ 1,336 37.7% - 30.6% 21 3 Fifth Third bank $ 479 11.6% $ 419 11.8% 14.3% 10 Market Total $ 4,138 $ 3,540 16.9% 8 Herit
Slide 9: History of Superior Financial Performance
History of Superior Financial Performance 9 2010 through 2014 Five Years of Consecutive Record Earnings Performance Double-Digit Return on Equity for Past 10 Consecutive Fiscal Years (13%+ROE 2012 through 2014) 2009, 2010, 2011, 2013 & 2014 Highest Performing (Return on Equity) among Indiana-domicil
Slide 10: Financial Trends
Financial Trends 10
Slide 11: Net Income & Earnings Per Share
$13,405 $20,249 $24,055 $25,413 $28,344 $6,305 $7,306 $1.21 $1.61 $1.90 $1.98 $2.14 $0.48 $0.55 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Q1 '14 Q1 '15 (Dollars in Thousands) Net Income & Earnings Per Share Earnings Per Share 11
Slide 12: Total Assets and Return on Assets
$1,376 $1,874 $2,006 $2,164 $2,237 $2,240 1.01% 1.11% 1.24% 1.25% 1.31% 1.31% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Q1 '15 (Dollars in Thousands) Total Assets Annualized Return on Assets 12
Slide 13: Total Loans
$917 $1,121 $1,205 $1,382 $1,448 $1,447 79% 81% 83% 81% 81% 81% $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Q1 '15 (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, $ 22.9 million, 2% Agricultural Loans, $ 212.6 million, 15% Multi-Family Residential Properties, $ 73.3 million, 5% Commercial Real Estate Non- Owner Occupied, $ 302.0 million, 21% Commercial Real Estate Owner Occupied, $ 190.2 million, 13% Commercial & Industrial L
Slide 15: Non-Performing Assets to Total Assets
0.94% 1.08% 0.60% 0.44% 0.29% 0.29% 3.89% 3.08% 2.15% 1.45% 1.04% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Q1 '15 Non- Performing Assets to Total Assets GABC Peer Group 15
Slide 16: Net Charge-offs to Average Loans
0.32% 0.43% 0.19% 0.10% -0.01% 0.00% 1.28% 0.88% 0.59% 0.25% 0.15% -0.25% 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Q1 '15 Net Charge-offs to Average Loans GABC Peer Group 16
Slide 17: Total Deposits
$1,087 $1,556 $1,641 $1,812 $1,780 $1,800 67% 76% 80% 81% 81% 80% $- $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 $2,200 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Q1 '15 (Dollars in Millions) Total Deposits Non- Maturity Deposit Accounts as % of Total Deposits 17
Slide 18: Total Deposit Composition
Non-Interest Bearing Demand, $426.4 million, 24% Interest Bearing Demand, Savings & Money Market, $1,009.4 million, 56% Time Deposits, $364.6 million, 20% 18 Total Deposit Composition as of March 31, 2015 Cost of Funds 2010 1.25% 2011 0.95% 2012 0.60% 2013 0.37% 2014 0.30% Q1 2015 0.28% Total Deposi
Slide 19: Shareholders' Equity and Return on Equity
$122 $168 $185 $200 $229 $238 11.18% 12.67% 13.57% 13.40% 13.21% 12.53% $- $50 $100 $150 $200 $250 $300 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Q1 '15 (Dollars in Millions) Total Shareholders’ Equity Annualized Return on Equity 19
Slide 20: Net Interest Income and Net Interest Margin
$49,481 $65,202 $67,819 $70,319 $76,991 $18,796 $19,320 3.98% 3.84% 3.74% 3.67% 3.76% 3.78% 3.72% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Q1 '14 Q1 '15 (Dollars in Thousands) Net Interest Income (Tax- Equivalent) Net Int
Slide 21: Non-Interest Income
$16,943 $21,576 $21,811 $23,615 $23,937 $6,281 $7,142 26% 25% 24% 25% 24% 25% 27% $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Q1 '14 Q1 '15 (Dollars in Thousands) Non-Interest Income Non-Interest Income as % of Total Revenue 21
Slide 22: Non-Interest Expense and Efficiency Ratio
$41,361 $50,782 $50,923 $54,905 $57,713 $15,090 $14,833 62.3% 58.5% 56.8% 58.5% 57.2% 60.2% 56.1% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Q1 '14 Q1 '15 (Dollars in Thousands) Non-Interest Expense Efficiency Ratio 22
Slide 23: Net Income & Earnings Per Share
$13,405 $20,249 $24,055 $25,413 $28,344 $6,305 $7,306 $1.21 $1.61 $1.90 $1.98 $2.14 $0.48 $0.55 $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 12/31/10 12/31/11 12/31/12 12/31/13 12/31/14 Q1 '14 Q1 '15 (Dollars in Thousands) Net Income & Earnings Per Share Earnings Per Share 23
Slide 24: Why Invest in GABC?
Why Invest in GABC? 24
Slide 25: GABC Return on Shareholders' Equity
11.51% 11.56% 10.04% 12.84% 11.12% 11.18% 12.67% 13.57% 13.40% 13.21% GABC Return on Shareholders’ Equity Why Invest in GABC? 25 As of 12/31 for years shown
Slide 26: GABC Earnings Per Share Growth
$0.89 $0.93 $0.85 $1.16 $1.10 $1.21 $1.61 $1.90 $1.98 $2.14 GABC Earnings Per Share Growth 26 As of 12/31 for years shown Why Invest in GABC?
Slide 27: GABC Stock Price Appreciation
$11.39 $16.25 $18.42 $18.19 $21.72 $28.42 $30.52 GABC Stock Price Appreciation Why Invest in GABC? As of 12/31 for years shown 27
Slide 28: Why Invest in GABC? Peer Performance Screen
2014 ROE ≥ 13% 3 Institutions including German American Source: SNL Financial. Financial data is as of December 31, 2014. All U.S. Exchange traded depositories 437 Institutions ROE ≥ 10% for the past 10 years 12 Institutions Consecutive increases in Net Income & EPS for past 5 years 5 Institutions 2
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 Information
Mark A. Schroeder, Chairman and CEO (812) 482-0701 mark.schroeder@germanamerican.com Bradley M. Rust, Executive Vice President and CFO (812) 482-0718 brad.rust@germanamerican.com 30