German American Bancorp, Inc. · NASDAQ:GABC
German American Bancorp — Hovde Group Financial Services Conference 2021
28 slides from German American Bancorp's conference presentation, Nov 3, 2021
Slide 1: German American Hovde Group Financial Services Conference
German American Symbol: GABC November 3 – 5, 2021 Hovde Group Financial Services Conference
Slide 2: Presented By
Presented By 2 D. Neil Dauby , President and Chief Operating Officer (812) 482 - 0707 neil.dauby@germanamerican.com Bradley M. Rust, Senior Executive Vice President 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 “
Slide 4: Who We Are
Who We Are Indiana & Kentucky Community - focused Financial Services Organization • Banking, Insurance, Investments & Trust • $ 5.5 Billion Total Banking Assets • $ 2.3 Billion Investment and Trust Assets Under Management • $ 70 Million Annual Insurance Premiums • ~ 800 Team Members • 64 Banking Off
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 GABC Deposit Market Share*** Market Share Position *** # of Branches*** Heritage Markets* $ 6,529,499 35% #1 27 Evansville/Newburgh $ 6,700,611 9% #3 8 Bloomington $ 3,412,353 11% #4 3 Columbus $ 1,7
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 GABC Deposit Market Share** Market Share Position** # of Branches** Owensboro $ 3,015,787 5% #6 3 Bowling Green $ 3,535,230 8% #4 4 Louisville MSA* (Kentuck y Portion) $ 33,122,114 2% #9 11 Total Ke
Slide 7: History of Superior Financial Performance
History of Superior Financial Performance - Nine Consecutive Years of Increased Dividends - Eleven Years of Consecutive Record Earnings Performance - Double - Digit Return on Equity for Past 16 Consecutive Fiscal Years - Bank Director Magazine - Bank Performance Scorecard Top 15 National Ranking for
Slide 8: Financial Trends
FINANCIAL TRENDS 8
Slide 9: Total Assets and Annualized Return on Assets
$2,956 $3,144 $3,929 $4,398 $4,978 $5,476 1.24% 1.35% 1.38% 1.43% 1.32% 1.63% $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 9/30/21 (Dollars in Millions) Total Assets Annualized Return on Assets 9
Slide 10: Total Loans, Net of Unearned Income
$1,990 $2,142 $2,728 $3,077 $3,088 $3,009 81% 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 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 09/30/21 (Dollars in Millions) Total Loans, Net of Unearned Income Commercial & Agricultural Loans as
Slide 11: Loan Portfolio Composition
Total Loans $3,009.3 million Loan Portfolio Composition As of September 30, 2021 11 Construction & Development Loans , $ 211.6 million , 7% Agricultural Loans , $ 357.9 million , 12% Commercial Real Estate Owner Occupied , $ 401.5 million , 13% Commercial Real Estate Non - Owner Occupied , $ 742.3 m
Slide 12: Non-Performing Assets to Total Assets
0.14% 0.38% 0.34% 0.33% 0.44% 0.34% 0.76% 0.48% 0.45% 0.45% 0.52% 0.43% * 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 09/30/21 Non - Performing Assets to Total Assets GABC Peer Group 12 *Peer Group as of 06/30/21
Slide 13: Total Deposits
$2,350 $2,484 $3,073 $3,430 $4,107 $4,593 84% 84% 81% 82% 88% 92% $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 09/30/21 (Dollars in Millions) Total Deposits Non-Maturity Deposit Accounts as % of Total Deposits 13
Slide 14: Deposit Composition
Non - Interest Bearing Demand , $1,453.2 million , 32% Interest Bearing Demand, Savings & Money Market , $2,762.3 million , 60% Time Deposits , $377.5 million , 8% Deposit Composition as of September 30, 2021 Total Deposits $4,593.0 million 14 Year Cost of Deposits Cost of Funds 2016 0.23% 0.32% 201
Slide 15: Shareholders' Equity and Return on Tangible Equity
$330 $365 $459 $574 $625 $650 13.02% 13.82% 14.82% 14.98% 13.46% 16.97% $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 $600 $650 $700 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 09/30/21 (Dollars in Millions) Total Shareholders’ Equity Annualized Return on Tangible Equity 15
Slide 16: Net Interest Income and Net Interest Margin
$94,904 $99,909 $114,610 $145,225 $155,243 $113,103 $120,099 3.75% 3.76% 3.75% 3.92% 3.63% 3.60% 3.34% $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 09/30/20 YTD 09/30/21 YTD (Dollars in Thousands) Net Interest Income Net
Slide 17: Provision for Credit Losses and Net Charge-offs
$1,200 $1,750 $2,070 $5,325 $17,550 $15,550 $(8,500) 0.04% 0.04% 0.08% 0.17% 0.08% 0.03% 0.02% $(10,000) $(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 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 09/30/20 YTD 09/30/21 YTD (Dollars
Slide 18: Non-Interest Income
$32,013 $31,854 $37,070 $45,501 $54,474 $39,783 $44,495 25% 24% 24% 24% 26% 26% 27% $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 09/30/20 YTD 09/30/21 YTD (Dollars in Thousands) Non - Interest Income Non-Interest Income as % of Total Revenue 18
Slide 19: Non-Interest Expense and Efficiency Ratio
$76,587 $77,803 $93,553 $114,162 $117,123 $87,836 $92,740 58.3% 56.8% 60.6% 59.0% 55.0% 56.6% 55.2% $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 09/30/20 YTD 09/30/21 YTD (Dollars in Thousands) Non - Interest Expense Efficiency Ratio 19
Slide 20: Net Income & Earnings Per Share
$35,184 $40,676 $46,529 $59,222 $62,210 $41,320 $64,865 $1.57 $1.77 $1.99 $2.29 $2.34 $1.56 $2.44 $- $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 09/30/20 YTD 09/30/21 YTD (Dollars in Thousands, Except Per Share Amounts) Net Income & Earnings P
Slide 21: Announced M&A - Citizens Union Bank
Citizens Union Bancorp’s major Kentucky markets enhance GABC’s overall demographics Attractive Addition to Kentucky Franchise GABC CUB Pro Forma Branch Map Source: S&P Global Market Intelligence, Company documents 1) Based on 3,706,299 shares of CUB common stock outstanding 2) GABC YTD Diluted Earni
Slide 22: Attractive addition to German American franchise
22 • Attractive addition to German American franchise: – Expands GABC’s market share position in the attractive Louisville, KY market (1) • T r i p l i n g m a r ket s h a r e t o 2 . 47 % , a t op - 10 o v e r a l l m a r ket s h a r e pos i t i on i n a m a j or m e t r o m a r ket • Increases Ger
Slide 23: Why Invest in GABC?
WHY INVEST IN GABC? 23
Slide 24: Why Invest in GABC? Earnings Per Share Growth
24 Why Invest in GABC? $1.07 $1.27 $1.32 $1.43 $1.51 $1.57 $1.77 $1.99 $2.29 $2.34 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: Why Invest in GABC? Tangible Book Value Per Share
25 $7.64 $8.62 $8.92 $10.40 $11.57 $11.94 $13.45 $13.81 $16.49 $18.63 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: Why Invest in GABC? Stock Price Appreciation
26 $12.13 $14.48 $18.95 $20.35 $22.21 $35.07 $35.33 $27.77 $35.62 $33.09 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 • Existing Platform for Operating Efficiency • Infrast
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