German American Bancorp, Inc. (GABC) Reports Record Earnings for Third Quarter 2025
The record operating performance was driven by continued net interest margin expansion, strong gains in net interest income and operating leverage, solid deposit growth with continued high level of non-interest bearing demand deposits, solid loan growth, healthy credit metrics and controlled expenses.
The overall loan portfolio at September 30, 2025 remains stable and diversified, increasing by approximately
Third quarter total deposits increased
Non-interest income trended favorably in the third quarter of 2025 over linked second quarter 2025. Non-interest income increased
The Company’s third quarter 2025 efficiency ratio fell below
The Company also announced that its Board of Directors declared a regular quarterly cash dividend of
“We are extremely pleased to deliver a record earnings performance in the third quarter of 2025 as we positioned the Company with various strategic transactions throughout 2024 and early 2025. Our Heartland Bank acquisition that closed in the first quarter of 2025 continues to integrate extremely well, adding to the overall momentum of our Company. We are excited about the long-term growth potential in connection with a normalizing yield curve and our strong diversified organic growth footprint,” stated D. Neil Dauby, German American’s Chairman and CEO.
Dauby also stated, “We continue to add top talent to our relationship-focused team of professionals and, with their dedicated efforts, we are confident that our strong community presence, healthy financial condition and disciplined approach to growth will continue to drive future profitability and long-term shareholder value. We remain excited and committed to the vitality and future growth of our
Balance Sheet Highlights
On February 1, 2025, the Company completed its acquisition of Heartland through the merger of Heartland with and into the Company. Immediately following completion of the Heartland holding company merger, Heartland’s subsidiary bank, Heartland Bank, was merged with and into the Company’s subsidiary bank, German American Bank (the "Bank"). Heartland, headquartered in
Total assets for the Company totaled
September 30, 2025 total loans increased
The composition of the loan portfolio has remained relatively stable and diversified over the past several years. The addition of the Heartland loan portfolio resulted in only modest changes to the overall portfolio composition, most notably in the residential mortgage loan segment. The portfolio is most heavily weighted in commercial real estate loans at
End of Period Loan Balances |
|
9/30/2025 |
|
6/30/2025 |
|
9/30/2024 |
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(dollars in thousands) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Commercial & Industrial Loans |
|
$ |
815,222 |
|
$ |
817,546 |
|
$ |
670,104 |
Commercial Real Estate Loans |
|
|
3,103,181 |
|
|
3,096,728 |
|
|
2,179,981 |
Agricultural Loans |
|
|
472,807 |
|
|
461,420 |
|
|
417,473 |
Consumer Loans |
|
|
603,742 |
|
|
574,323 |
|
|
439,382 |
Residential Mortgage Loans |
|
|
792,670 |
|
|
798,343 |
|
|
362,415 |
|
|
$ |
5,787,622 |
|
$ |
5,748,360 |
|
$ |
4,069,355 |
The Company’s allowance for credit losses totaled
The Company added
Under the CECL model, certain acquired loans continue to carry a fair value discount as well as an allowance for credit losses. As of September 30, 2025, the Company held net discounts on acquired loans of
Non-performing assets totaled
The overall increase in non-performing assets at September 30, 2025 compared with September 30, 2024 was largely attributable to the Heartland acquisition. As of September 30, 2025, non-performing assets from the Heartland acquisition totaled approximately
Non-performing Assets |
|
|
|
|
|
|||
(dollars in thousands) |
|
|
|
|
|
|||
|
9/30/2025 |
|
6/30/2025 |
|
9/30/2024 |
|||
Non-Accrual Loans |
$ |
23,676 |
|
$ |
22,787 |
|
$ |
9,701 |
Past Due Loans (90 days or more) |
|
— |
|
|
2,301 |
|
|
— |
Total Non-Performing Loans |
|
23,676 |
|
|
25,088 |
|
|
9,701 |
Other Real Estate |
|
48 |
|
|
48 |
|
|
— |
Total Non-Performing Assets |
$ |
23,724 |
|
$ |
25,136 |
|
$ |
9,701 |
|
|
|
|
|
|
|||
September 30, 2025 total deposits increased
The addition of the Heartland deposit portfolio did not result in significant changes to the overall deposit portfolio composition. Notably, non-interest bearing deposits have remained relatively stable as a percent of total deposits at approximately
End of Period Deposit Balances |
|
9/30/2025 |
|
6/30/2025 |
|
9/30/2024 |
|||
(dollars in thousands) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Non-interest-bearing Demand Deposits |
|
$ |
1,938,522 |
|
$ |
1,896,737 |
|
$ |
1,406,405 |
IB Demand, Savings, and MMDA Accounts |
|
|
3,714,191 |
|
|
3,728,031 |
|
|
2,955,306 |
Time Deposits < |
|
|
502,548 |
|
|
521,802 |
|
|
349,824 |
Time Deposits > |
|
|
859,241 |
|
|
808,116 |
|
|
559,744 |
|
|
$ |
7,014,502 |
|
$ |
6,954,686 |
|
$ |
5,271,279 |
At September 30, 2025, the capital levels for the Company and the Bank remained well in excess of the minimum amounts needed for capital adequacy purposes and the Bank’s capital levels met the necessary requirements to be considered well-capitalized.
|
|
9/30/2025 Ratio |
|
6/30/2025 Ratio |
|
9/30/2024 Ratio |
|||
Total Capital (to Risk Weighted Assets) |
|
|
|
|
|
|
|||
Consolidated |
|
15.07 |
% |
|
15.21 |
% |
|
17.22 |
% |
Bank |
|
14.00 |
% |
|
13.93 |
% |
|
15.28 |
% |
Tier 1 (Core) Capital (to Risk Weighted Assets) |
|
|
|
|
|
|
|||
Consolidated |
|
13.83 |
% |
|
13.53 |
% |
|
15.76 |
% |
Bank |
|
13.10 |
% |
|
13.02 |
% |
|
14.46 |
% |
Common Tier 1 (CET 1) Capital Ratio (to Risk Weighted Assets) |
|
|
|
|
|
|
|||
Consolidated |
|
13.30 |
% |
|
13.00 |
% |
|
15.04 |
% |
Bank |
|
13.10 |
% |
|
13.02 |
% |
|
14.46 |
% |
Tier 1 Capital (to Average Assets) |
|
|
|
|
|
|
|||
Consolidated |
|
11.40 |
% |
|
10.93 |
% |
|
12.30 |
% |
Bank |
|
10.80 |
% |
|
10.51 |
% |
|
11.29 |
% |
Results of Operations Highlights – Quarter ended September 30, 2025
Net income for the quarter ended September 30, 2025 totaled
The results of operations for each quarter presented include Heartland acquisition-related expenses. The third quarter of 2025 also included a non-recurring gain on the redemption of certain subordinated debt. On an adjusted basis, net income for the third quarter of 2025 was
Summary Average Balance Sheet |
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|
|
|
|
|
|
|
|
|
|
|
|
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|
|||||||||
(Tax-equivalent basis / dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|||||||||||||||||||||
|
|
September 30, 2025 |
|
June 30, 2025 |
|
September 30, 2024 |
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|
|
|
|
|
|
|
|
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|
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|
|||||||||
|
|
Principal Balance |
|
Income/ Expense |
|
Yield/ Rate |
|
Principal Balance |
|
Income/ Expense |
|
Yield/ Rate |
|
Principal Balance |
|
Income/ Expense |
|
Yield/ Rate |
|||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal Funds Sold and Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Short-term Investments |
|
$ |
187,648 |
|
$ |
2,084 |
|
4.41 |
% |
|
$ |
353,588 |
|
$ |
3,932 |
|
4.46 |
% |
|
$ |
164,154 |
|
$ |
2,223 |
|
5.39 |
% |
Securities |
|
|
1,584,261 |
|
|
13,622 |
|
3.44 |
% |
|
|
1,572,596 |
|
|
13,395 |
|
3.41 |
% |
|
|
1,490,807 |
|
|
12,157 |
|
3.26 |
% |
Loans and Leases |
|
|
5,766,875 |
|
|
93,664 |
|
6.45 |
% |
|
|
5,678,929 |
|
|
90,378 |
|
6.38 |
% |
|
|
4,052,673 |
|
|
61,424 |
|
6.03 |
% |
Total Interest Earning Assets |
|
$ |
7,538,784 |
|
$ |
109,370 |
|
5.77 |
% |
|
$ |
7,605,113 |
|
$ |
107,705 |
|
5.68 |
% |
|
$ |
5,707,634 |
|
$ |
75,804 |
|
5.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand Deposit Accounts |
|
$ |
1,912,208 |
|
|
|
|
|
$ |
1,873,459 |
|
|
|
|
|
$ |
1,411,377 |
|
|
|
|
||||||
IB Demand, Savings, and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
MMDA Accounts |
|
$ |
3,753,235 |
|
$ |
17,086 |
|
1.81 |
% |
|
$ |
3,858,196 |
|
$ |
17,739 |
|
1.84 |
% |
|
$ |
2,970,716 |
|
$ |
13,836 |
|
1.85 |
% |
Time Deposits |
|
|
1,330,944 |
|
|
12,330 |
|
3.68 |
% |
|
|
1,381,233 |
|
|
12,896 |
|
3.75 |
% |
|
|
888,639 |
|
|
9,539 |
|
4.27 |
% |
FHLB Advances and Other Borrowings |
|
|
216,460 |
|
|
2,956 |
|
5.42 |
% |
|
|
208,241 |
|
|
2,645 |
|
5.09 |
% |
|
|
191,548 |
|
|
2,684 |
|
5.57 |
% |
Total Interest-Bearing Liabilities |
|
$ |
5,300,639 |
|
$ |
32,372 |
|
2.42 |
% |
|
$ |
5,447,670 |
|
$ |
33,280 |
|
2.45 |
% |
|
$ |
4,050,903 |
|
$ |
26,059 |
|
2.56 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of Funds |
|
|
|
|
|
1.71 |
% |
|
|
|
|
|
1.76 |
% |
|
|
|
|
|
1.82 |
% |
||||||
Net Interest Income, Tax-Equivalent Basis* |
|
|
|
$ |
76,998 |
|
|
|
|
|
$ |
74,425 |
|
|
|
|
|
$ |
49,745 |
|
|
||||||
Net Interest Margin |
|
|
|
|
|
4.06 |
% |
|
|
|
|
|
3.92 |
% |
|
|
|
|
|
3.47 |
% |
||||||
___________________________________________ |
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| * Represents a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures. | |||||||||||||||||||||||||||
During the third quarter of 2025, net interest income, on a non tax-equivalent basis, totaled
The increase in net interest income during the third quarter of 2025 compared with the second quarter of 2025 was driven by improvement in the Company's net interest margin. The increase in net interest income during the third quarter of 2025 compared with the third quarter of 2024 was primarily attributable to a higher level of average earning assets driven in large part by the Heartland acquisition and an improvement of the Company's net interest margin.
The tax equivalent net interest margin for the quarter ended September 30, 2025 was
The Company's net interest margin and net interest income in all periods presented have been impacted by accretion of loan discounts on acquired loans. Accretion of discounts on acquired loans totaled
During the quarter ended September 30, 2025, the Company recorded a provision for credit losses of
During the quarter ended September 30, 2025, non-interest income totaled
Excluding the gain on the extinguishment of debt, non-interest income for the third quarter of 2025 was
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|||
Non-interest Income |
|
9/30/2025 |
|
6/30/2025 |
|
9/30/2024 |
|||
(dollars in thousands) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Wealth Management Fees |
|
$ |
4,288 |
|
$ |
4,165 |
|
$ |
3,580 |
Service Charges on Deposit Accounts |
|
|
3,927 |
|
|
3,714 |
|
|
3,330 |
Insurance Revenues |
|
|
— |
|
|
— |
|
|
— |
Company Owned Life Insurance |
|
|
630 |
|
|
703 |
|
|
476 |
Interchange Fee Income |
|
|
5,087 |
|
|
5,057 |
|
|
4,390 |
Sale of Assets of German American Insurance |
|
|
— |
|
|
— |
|
|
— |
Other Operating Income |
|
|
3,308 |
|
|
1,815 |
|
|
1,251 |
Subtotal |
|
|
17,240 |
|
|
15,454 |
|
|
13,027 |
Net Gains on Sales of Loans |
|
|
1,189 |
|
|
1,279 |
|
|
704 |
Net Gains (Losses) on Securities |
|
|
— |
|
|
— |
|
|
70 |
Total Non-interest Income |
|
$ |
18,429 |
|
$ |
16,733 |
|
$ |
13,801 |
Wealth management fees increased
Service charges on deposit accounts increased
Interchange fees increased
Other operating income increased
Net gains on sales of loans declined
During the quarter ended September 30, 2025, non-interest expense totaled
Each period presented included Heartland acquisition-related expenses, with such amounts being
On an adjusted basis, non-interest expense for the third quarter of 2025 was
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|||
Non-interest Expense |
|
9/30/2025 |
|
6/30/2025 |
|
9/30/2024 |
|||
(dollars in thousands) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Salaries and Employee Benefits |
|
$ |
25,444 |
|
$ |
26,638 |
|
$ |
19,718 |
Occupancy, Furniture and Equipment Expense |
|
|
5,255 |
|
|
4,751 |
|
|
3,880 |
FDIC Premiums |
|
|
1,059 |
|
|
888 |
|
|
755 |
Data Processing Fees |
|
|
4,175 |
|
|
4,086 |
|
|
3,156 |
Professional Fees |
|
|
1,960 |
|
|
2,112 |
|
|
1,912 |
Advertising and Promotion |
|
|
1,321 |
|
|
1,300 |
|
|
941 |
Intangible Amortization |
|
|
2,693 |
|
|
2,803 |
|
|
484 |
Other Operating Expenses |
|
|
7,793 |
|
|
6,939 |
|
|
5,280 |
Total Non-interest Expense |
|
$ |
49,700 |
|
$ |
49,517 |
|
$ |
36,126 |
Salaries and benefits declined
Occupancy, furniture and equipment expense increased
Data processing fees increased
Intangible amortization declined
Other operating expenses increased
About German American
German American Bancorp, Inc. (Nasdaq: GABC) is a financial holding company based in
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned that, by their nature, forward-looking statements are based on assumptions and are subject to risks, uncertainties, and other factors. Forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions.
Actual results and experience could differ materially from the anticipated results or other expectations expressed or implied by these forward-looking statements as a result of a number of factors, including but not limited to, those discussed in this press release. Factors that could cause actual experience to differ from the expectations expressed or implied in this press release include:
a. |
changes in interest rates and the timing and magnitude of any such changes; |
b. |
unfavorable economic conditions, including a prolonged period of inflation, and the resulting adverse impact on, among other things, credit quality; |
c. |
the soundness of other financial institutions and general investor sentiment regarding the stability of financial institutions; |
d. |
changes in our liquidity position; |
e. |
the impacts of epidemics, pandemics or other infectious disease outbreaks; |
f. |
changes in competitive conditions; |
g. |
the introduction, withdrawal, success and timing of asset/liability management strategies or of mergers and acquisitions and other business initiatives and strategies; |
h. |
changes in customer borrowing, repayment, investment and deposit practices; |
i. |
changes in fiscal, monetary and tax policies; |
j. |
changes in financial and capital markets; |
k. |
capital management activities, including possible future sales of new securities, or possible repurchases or redemptions by German American of outstanding debt or equity securities; |
l. |
risks of expansion through acquisitions and mergers, including the possibility that the anticipated cost savings and strategic gains, are not realized when expected or at all as a result of unexpected credit quality problems of the acquired loans or other assets, unexpected attrition of the customer base or employee base of the acquired institution or branches, and difficulties in integration of the acquired operations; |
m. |
factors driving credit losses on investments; |
n. |
the impact, extent and timing of technological changes; |
o. |
potential cyber-attacks, information security breaches and other criminal activities; |
p. |
litigation liabilities, including related costs, expenses, settlements and judgments, or the outcome of matters before regulatory agencies, whether pending or commencing in the future; |
q. |
actions of the Federal Reserve Board; |
r. |
changes in accounting principles and interpretations; |
s. |
potential increases of federal deposit insurance premium expense, and possible future special assessments of FDIC premiums, either industry wide or specific to German American’s banking subsidiary; |
t. |
actions of the regulatory authorities under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the Federal Deposit Insurance Act and other possible legislative and regulatory actions and reforms; |
u. |
impacts resulting from possible amendments or revisions to the Dodd-Frank Act and the regulations promulgated thereunder, or to Consumer Financial Protection Bureau rules and regulations; |
v. |
the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends; |
w. |
changes to the fair value estimates used by German American in accounting for its acquisition of Heartland, which preliminary valuations must be finalized no later than January 31, 2026; and |
x. |
other risk factors expressly identified in German American’s cautionary language included under the headings “Forward-Looking Statements and Associated Risk” and “Risk Factors” in German American’s Annual Report on Form 10-K for the year ended December 31, 2024, and other documents subsequently filed by German American with the SEC. |
Such statements reflect our views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of German American. Readers are cautioned not to place undue reliance on these forward-looking statements. It is intended that these forward-looking statements speak only as of the date they are made. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.
GERMAN AMERICAN BANCORP, INC. |
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(unaudited, dollars in thousands except per share data) |
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Consolidated Balance Sheets |
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|
September 30, 2025 |
|
June 30, 2025 |
|
September 30, 2024 |
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ASSETS |
|
|
|
|
|
||||||
Cash and Due from Banks |
$ |
112,718 |
|
|
$ |
99,871 |
|
|
$ |
77,652 |
|
Short-term Investments |
|
143,430 |
|
|
|
100,777 |
|
|
|
118,403 |
|
Investment Securities |
|
1,618,370 |
|
|
|
1,572,205 |
|
|
|
1,548,347 |
|
|
|
|
|
|
|
||||||
Loans Held-for-Sale |
|
10,058 |
|
|
|
13,880 |
|
|
|
9,173 |
|
|
|
|
|
|
|
||||||
Loans, Net of Unearned Income |
|
5,778,505 |
|
|
|
5,739,428 |
|
|
|
4,061,149 |
|
Allowance for Credit Losses |
|
(76,057 |
) |
|
|
(75,510 |
) |
|
|
(44,124 |
) |
Net Loans |
|
5,702,448 |
|
|
|
5,663,918 |
|
|
|
4,017,025 |
|
|
|
|
|
|
|
||||||
Stock in FHLB and Other Restricted Stock |
|
17,856 |
|
|
|
17,966 |
|
|
|
14,488 |
|
Premises and Equipment |
|
139,850 |
|
|
|
139,435 |
|
|
|
105,419 |
|
Goodwill and Other Intangible Assets |
|
411,656 |
|
|
|
417,159 |
|
|
|
183,548 |
|
Other Assets |
|
244,862 |
|
|
|
254,931 |
|
|
|
186,852 |
|
TOTAL ASSETS |
$ |
8,401,248 |
|
|
$ |
8,280,142 |
|
|
$ |
6,260,907 |
|
|
|
|
|
|
|
||||||
LIABILITIES |
|
|
|
|
|
||||||
Non-interest-bearing Demand Deposits |
$ |
1,938,522 |
|
|
$ |
1,896,737 |
|
|
$ |
1,406,405 |
|
Interest-bearing Demand, Savings, and Money Market Accounts |
|
3,714,191 |
|
|
|
3,728,031 |
|
|
|
2,955,306 |
|
Time Deposits |
|
1,361,789 |
|
|
|
1,329,918 |
|
|
|
909,568 |
|
Total Deposits |
|
7,014,502 |
|
|
|
6,954,686 |
|
|
|
5,271,279 |
|
|
|
|
|
|
|
||||||
Borrowings |
|
211,016 |
|
|
|
202,033 |
|
|
|
204,153 |
|
Other Liabilities |
|
56,007 |
|
|
|
53,919 |
|
|
|
40,912 |
|
TOTAL LIABILITIES |
|
7,281,525 |
|
|
|
7,210,638 |
|
|
|
5,516,344 |
|
|
|
|
|
|
|
||||||
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
||||||
Common Stock and Surplus |
|
744,017 |
|
|
|
743,230 |
|
|
|
421,262 |
|
Retained Earnings |
|
558,086 |
|
|
|
533,834 |
|
|
|
498,340 |
|
Accumulated Other Comprehensive Income (Loss) |
|
(182,380 |
) |
|
|
(207,560 |
) |
|
|
(175,039 |
) |
SHAREHOLDERS’ EQUITY |
|
1,119,723 |
|
|
|
1,069,504 |
|
|
|
744,563 |
|
|
|
|
|
|
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
8,401,248 |
|
|
$ |
8,280,142 |
|
|
$ |
6,260,907 |
|
|
|
|
|
|
|
||||||
END OF PERIOD SHARES OUTSTANDING |
|
37,493,333 |
|
|
|
37,492,814 |
|
|
|
29,679,466 |
|
|
|
|
|
|
|
||||||
TANGIBLE BOOK VALUE PER SHARE (1) |
$ |
18.89 |
|
|
$ |
17.40 |
|
|
$ |
18.90 |
|
|
|
|
|
|
|
||||||
(1) Tangible Book Value per Share is defined as Total Shareholders’ Equity less Goodwill and Other Intangible Assets divided by End of Period Shares Outstanding. |
|||||||||||
|
|||||||||||
GERMAN AMERICAN BANCORP, INC. |
|||||||||||||||||||
(unaudited, dollars in thousands except per share data) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Consolidated Statements of Income |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
September 30, 2025 |
|
June 30, 2025 |
|
September 30, 2024 |
|
September 30, 2025 |
|
September 30, 2024 |
||||||||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
||||||||||
Interest and Fees on Loans |
$ |
93,305 |
|
$ |
90,002 |
|
$ |
61,140 |
|
$ |
264,812 |
|
$ |
178,196 |
|
||||
Interest on Short-term Investments |
|
2,084 |
|
|
|
3,932 |
|
|
|
2,223 |
|
|
|
8,232 |
|
|
|
4,905 |
|
Interest and Dividends on Investment Securities |
|
12,708 |
|
|
|
12,501 |
|
|
|
11,290 |
|
|
|
37,704 |
|
|
|
31,387 |
|
TOTAL INTEREST INCOME |
|
108,097 |
|
|
|
106,435 |
|
|
|
74,653 |
|
|
|
310,748 |
|
|
|
214,488 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
||||||||||
Interest on Deposits |
|
29,416 |
|
|
|
30,635 |
|
|
|
23,375 |
|
|
|
87,079 |
|
|
|
67,749 |
|
Interest on Borrowings |
|
2,956 |
|
|
|
2,645 |
|
|
|
2,684 |
|
|
|
8,217 |
|
|
|
7,180 |
|
TOTAL INTEREST EXPENSE |
|
32,372 |
|
|
|
33,280 |
|
|
|
26,059 |
|
|
|
95,296 |
|
|
|
74,929 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INTEREST INCOME |
|
75,725 |
|
|
|
73,155 |
|
|
|
48,594 |
|
|
|
215,452 |
|
|
|
139,559 |
|
Provision for Credit Losses |
|
700 |
|
|
|
1,200 |
|
|
|
625 |
|
|
|
17,200 |
|
|
|
2,150 |
|
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES |
|
75,025 |
|
|
|
71,955 |
|
|
|
47,969 |
|
|
|
198,252 |
|
|
|
137,409 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
||||||||||
Net Gains on Sales of Loans |
|
1,189 |
|
|
|
1,279 |
|
|
|
704 |
|
|
|
3,401 |
|
|
|
2,424 |
|
Net Gains (Losses) on Securities |
|
— |
|
|
|
— |
|
|
|
70 |
|
|
|
— |
|
|
|
(34,788 |
) |
Other Non-interest Income |
|
17,240 |
|
|
|
15,454 |
|
|
|
13,027 |
|
|
|
46,601 |
|
|
|
80,910 |
|
TOTAL NON-INTEREST INCOME |
|
18,429 |
|
|
|
16,733 |
|
|
|
13,801 |
|
|
|
50,002 |
|
|
|
48,546 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
||||||||||
Salaries and Benefits |
|
25,444 |
|
|
|
26,638 |
|
|
|
19,718 |
|
|
|
80,122 |
|
|
|
61,853 |
|
Other Non-interest Expenses |
|
24,256 |
|
|
|
22,879 |
|
|
|
16,408 |
|
|
|
71,877 |
|
|
|
48,685 |
|
TOTAL NON-INTEREST EXPENSE |
|
49,700 |
|
|
|
49,517 |
|
|
|
36,126 |
|
|
|
151,999 |
|
|
|
110,538 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income before Income Taxes |
|
43,754 |
|
|
|
39,171 |
|
|
|
25,644 |
|
|
|
96,255 |
|
|
|
75,417 |
|
Income Tax Expense |
|
8,680 |
|
|
|
7,810 |
|
|
|
4,596 |
|
|
|
19,303 |
|
|
|
14,817 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NET INCOME |
$ |
35,074 |
|
|
$ |
31,361 |
|
|
$ |
21,048 |
|
|
$ |
76,952 |
|
|
$ |
60,600 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
BASIC EARNINGS PER SHARE |
$ |
0.94 |
|
|
$ |
0.84 |
|
|
$ |
0.71 |
|
|
$ |
2.10 |
|
|
$ |
2.04 |
|
DILUTED EARNINGS PER SHARE |
$ |
0.94 |
|
|
$ |
0.84 |
|
|
$ |
0.71 |
|
|
$ |
2.10 |
|
|
$ |
2.04 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
37,493,028 |
|
|
|
37,479,342 |
|
|
|
29,679,464 |
|
|
|
36,561,331 |
|
|
|
29,649,020 |
|
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING |
|
37,493,028 |
|
|
|
37,479,342 |
|
|
|
29,679,464 |
|
|
|
36,561,331 |
|
|
|
29,649,020 |
|
GERMAN AMERICAN BANCORP, INC. |
||||||||||||||||||||
(unaudited, dollars in thousands except per share data) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
|
September 30, 2025 |
|
June 30, 2025 |
|
September 30, 2024 |
|
September 30, 2025 |
|
September 30, 2024 |
||||||||||
EARNINGS PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Annualized Return on Average Assets |
|
1.68 |
% |
|
|
1.49 |
% |
|
|
1.35 |
% |
|
|
1.26 |
% |
|
|
1.31 |
% |
|
Annualized Return on Average Equity |
|
13.00 |
% |
|
|
11.97 |
% |
|
|
11.97 |
% |
|
|
10.06 |
% |
|
|
12.06 |
% |
|
Annualized Return on Average Tangible Equity (1) |
|
21.14 |
% |
|
|
19.87 |
% |
|
|
16.20 |
% |
|
|
16.30 |
% |
|
|
16.66 |
% |
|
Net Interest Margin |
|
4.06 |
% |
|
|
3.92 |
% |
|
|
3.47 |
% |
|
|
3.98 |
% |
|
|
3.39 |
% |
|
Efficiency Ratio (2) |
|
49.26 |
% |
|
|
51.25 |
% |
|
|
56.15 |
% |
|
|
53.63 |
% |
|
|
47.95 |
% |
|
Net Overhead Expense to Average Earning Assets (3) |
|
1.66 |
% |
|
|
1.72 |
% |
|
|
1.56 |
% |
|
|
1.85 |
% |
|
|
1.46 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ASSET QUALITY RATIOS |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Annualized Net Charge-offs to Average Loans |
|
0.05 |
% |
|
|
0.06 |
% |
|
|
0.04 |
% |
|
|
0.05 |
% |
|
|
0.06 |
% |
|
Allowance for Credit Losses to Period End Loans |
|
1.32 |
% |
|
|
1.32 |
% |
|
|
1.09 |
% |
|
|
|
|
||||
|
Non-performing Assets to Period End Assets |
|
0.28 |
% |
|
|
0.30 |
% |
|
|
0.15 |
% |
|
|
|
|
||||
|
Non-performing Loans to Period End Loans |
|
0.41 |
% |
|
|
0.44 |
% |
|
|
0.24 |
% |
|
|
|
|
||||
|
Loans 30-89 Days Past Due to Period End Loans |
|
0.30 |
% |
|
|
0.46 |
% |
|
|
0.28 |
% |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|||||||||||
|
Average Assets |
$ |
8,350,565 |
|
|
$ |
8,424,328 |
|
|
$ |
6,216,284 |
|
|
$ |
8,137,211 |
|
|
$ |
6,183,231 |
|
|
Average Earning Assets |
$ |
7,538,784 |
|
|
$ |
7,605,113 |
|
|
$ |
5,707,634 |
|
|
$ |
7,357,725 |
|
|
$ |
5,669,302 |
|
|
Average Total Loans |
$ |
5,766,875 |
|
|
$ |
5,678,929 |
|
|
$ |
4,052,673 |
|
|
$ |
5,529,532 |
|
|
$ |
4,015,973 |
|
|
Average Demand Deposits |
$ |
1,912,208 |
|
|
$ |
1,873,459 |
|
|
$ |
1,411,377 |
|
|
$ |
1,819,351 |
|
|
$ |
1,419,745 |
|
|
Average Interest Bearing Liabilities |
$ |
5,300,639 |
|
|
$ |
5,447,670 |
|
|
$ |
4,050,903 |
|
|
$ |
5,242,871 |
|
|
$ |
4,046,128 |
|
|
Average Equity |
$ |
1,079,359 |
|
|
$ |
1,048,227 |
|
|
$ |
703,377 |
|
|
$ |
1,020,200 |
|
|
$ |
670,136 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Period End Non-performing Assets (4) |
$ |
23,724 |
|
|
$ |
25,136 |
|
|
$ |
9,701 |
|
|
|
|
|
||||
|
Period End Non-performing Loans (5) |
$ |
23,676 |
|
|
$ |
25,088 |
|
|
$ |
9,701 |
|
|
|
|
|
||||
|
Period End Loans 30-89 Days Past Due (6) |
$ |
17,091 |
|
|
$ |
26,294 |
|
|
$ |
11,501 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Tax-Equivalent Net Interest Income |
$ |
76,998 |
|
|
$ |
74,425 |
|
|
$ |
49,745 |
|
|
$ |
219,314 |
|
|
$ |
143,881 |
|
|
Net Charge-offs during Period |
$ |
748 |
|
|
$ |
848 |
|
|
$ |
447 |
|
|
$ |
2,082 |
|
|
$ |
1,791 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(1) |
Average Tangible Equity is defined as Average Equity less Average Goodwill and Other Intangibles. |
|||||||||||||||||||
(2) |
Efficiency Ratio is defined as Non-interest Expense less Intangible Amortization divided by the sum of Net Interest Income, on a tax-equivalent basis, and Non-interest Income less Net Gains (Losses) on Securities. |
|||||||||||||||||||
(3) |
Net Overhead Expense is defined as Total Non-interest Expense less Total Non-interest Income. |
|||||||||||||||||||
(4) |
Non-performing assets are defined as Non-accrual Loans, Loans Past Due 90 days or more, and Other Real Estate Owned. |
|||||||||||||||||||
(5) |
Non-performing loans are defined as Non-accrual Loans and Loans Past Due 90 days or more. |
|||||||||||||||||||
(6) |
Loans 30-89 days past due and still accruing. |
|||||||||||||||||||
The accounting and reporting policies of German American Bancorp, Inc. (the “Company”) conform to
Management believes that it is standard practice in the banking industry to present the efficiency ratio and net interest margin on a fully tax-equivalent basis and that, by doing so, it may enhance comparability for peer comparison purposes. The tax-equivalent adjustment to net interest income (for purposes of the efficiency ratio) and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of
Although intended to enhance investors’ understanding of the Company’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP.
GERMAN AMERICAN BANCORP, INC. NON-GAAP RECONCILIATIONS |
||||||||||||||||||||
Non-GAAP Reconciliation – Net Income and Earnings Per Share |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(Dollars in Thousands, except per share amounts) |
|
09/30/2025 |
|
06/30/2025 |
|
09/30/2024 |
|
09/30/2025 |
|
09/30/2024 |
||||||||||
Net Income, as reported |
|
$ |
35,074 |
|
$ |
31,361 |
|
$ |
21,048 |
|
|
$ |
76,952 |
|
$ |
60,600 |
|
|||
Adjustments: |
|
|
|
|
|
|
|
|
|
|
||||||||||
Plus: CECL Day 2 non-PCD provision |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12,150 |
|
|
|
— |
|
Plus: Non-recurring merger-related expenses |
|
|
101 |
|
|
|
697 |
|
|
|
609 |
|
|
|
5,418 |
|
|
|
928 |
|
Less: Gain on debt extinguishment |
|
|
731 |
|
|
|
— |
|
|
|
— |
|
|
|
731 |
|
|
|
— |
|
Less: Loss on securities restructuring |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(27,189 |
) |
Less: Income from GAI operations |
|
|
— |
|
|
|
— |
|
|
|
(65 |
) |
|
|
— |
|
|
|
821 |
|
Less: Gain on sale of GAI assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
27,476 |
|
Adjusted Net Income |
|
$ |
34,444 |
|
|
$ |
32,058 |
|
|
$ |
21,722 |
|
|
$ |
93,789 |
|
|
$ |
60,420 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted Average Shares Outstanding |
|
|
37,493,028 |
|
|
|
37,479,342 |
|
|
|
29,679,464 |
|
|
|
36,561,331 |
|
|
|
29,649,020 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Earnings Per Share, as reported |
|
$ |
0.94 |
|
|
$ |
0.84 |
|
|
$ |
0.71 |
|
|
$ |
2.10 |
|
|
$ |
2.04 |
|
Earnings Per Share, as adjusted |
|
$ |
0.92 |
|
|
$ |
0.86 |
|
|
$ |
0.73 |
|
|
$ |
2.57 |
|
|
$ |
2.04 |
|
GERMAN AMERICAN BANCORP, INC. NON-GAAP RECONCILIATIONS |
||||||||||||||||||||
Non-GAAP Reconciliation – Non-Interest Income and Non-Interest Expense |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(Dollars in Thousands) |
|
09/30/2025 |
|
06/30/2025 |
|
09/30/2024 |
|
09/30/2025 |
|
09/30/2024 |
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-Interest Income |
|
$ |
18,429 |
|
$ |
16,733 |
|
$ |
13,801 |
|
$ |
50,002 |
|
$ |
48,546 |
|
||||
Less: Gains (Losses) on securities |
|
|
— |
|
|
|
— |
|
|
|
70 |
|
|
|
— |
|
|
|
105 |
|
Less: Loss on securities restructuring |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(34,893 |
) |
Less: Gain on debt extinguishment |
|
|
975 |
|
|
|
— |
|
|
|
— |
|
|
|
975 |
|
|
|
— |
|
Less: Revenue from GAI operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
4,434 |
|
Less: Gain on sale of GAI assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
38,323 |
|
Adjusted Non-Interest Income |
|
$ |
17,454 |
|
|
$ |
16,733 |
|
|
$ |
13,731 |
|
|
$ |
49,027 |
|
|
$ |
40,577 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Non-Interest Expense |
|
$ |
49,700 |
|
|
$ |
49,517 |
|
|
$ |
36,126 |
|
|
$ |
151,999 |
|
|
$ |
110,538 |
|
Less: Non-recurring merger-related expenses |
|
|
135 |
|
|
|
929 |
|
|
|
747 |
|
|
|
6,996 |
|
|
|
1,172 |
|
Less: Expense from GAI operations |
|
|
— |
|
|
|
— |
|
|
|
87 |
|
|
|
— |
|
|
|
3,342 |
|
Less: Expense from sale of GAI assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,816 |
|
Adjusted Non-Interest Expense |
|
$ |
49,565 |
|
|
$ |
48,588 |
|
|
$ |
35,292 |
|
|
$ |
145,003 |
|
|
$ |
104,208 |
|
GERMAN AMERICAN BANCORP, INC. NON-GAAP RECONCILIATIONS |
||||||||||||||||||||
Non-GAAP Reconciliation – Efficiency Ratio |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(Dollars in Thousands) |
|
09/30/2025 |
|
06/30/2025 |
|
09/30/2024 |
|
09/30/2025 |
|
09/30/2024 |
||||||||||
Adjusted Non-Interest Expense (from above) |
|
$ |
49,565 |
|
|
$ |
48,588 |
|
|
$ |
35,292 |
|
|
$ |
145,003 |
|
|
$ |
104,208 |
|
Less: Intangible Amortization |
|
|
2,693 |
|
|
|
2,803 |
|
|
|
484 |
|
|
|
7,566 |
|
|
|
1,594 |
|
Adjusted Non-Interest Expense excluding Intangible Amortization |
|
$ |
46,872 |
|
|
$ |
45,785 |
|
|
$ |
34,808 |
|
|
$ |
137,437 |
|
|
$ |
102,614 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net Interest Income |
|
$ |
75,725 |
|
|
$ |
73,155 |
|
|
$ |
48,594 |
|
|
$ |
215,452 |
|
|
$ |
139,559 |
|
Add: FTE Adjustment |
|
|
1,273 |
|
|
|
1,270 |
|
|
|
1,151 |
|
|
|
3,862 |
|
|
|
4,322 |
|
Net Interest Income (FTE) |
|
|
76,998 |
|
|
|
74,425 |
|
|
|
49,745 |
|
|
|
219,314 |
|
|
|
143,881 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Adjusted Non-Interest Income (from above) |
|
|
17,454 |
|
|
|
16,733 |
|
|
|
13,731 |
|
|
|
49,027 |
|
|
|
40,577 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Adjusted Total Revenue |
|
$ |
94,452 |
|
|
$ |
91,158 |
|
|
$ |
63,476 |
|
|
$ |
268,341 |
|
|
$ |
184,458 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Efficiency Ratio |
|
|
49.26 |
% |
|
|
51.25 |
% |
|
|
56.15 |
% |
|
|
53.63 |
% |
|
|
47.95 |
% |
Adjusted Efficiency Ratio |
|
|
49.63 |
% |
|
|
50.23 |
% |
|
|
54.84 |
% |
|
|
51.22 |
% |
|
|
55.63 |
% |
Non-GAAP Reconciliation – Net Interest Margin |
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
(Dollars in Thousands) |
|
09/30/2025 |
|
06/30/2025 |
|
09/30/2024 |
|
09/30/2025 |
|
09/30/2024 |
||||||||||
Net Interest Income (FTE) from above |
|
$ |
76,998 |
|
|
$ |
74,425 |
|
|
$ |
49,745 |
|
|
$ |
219,314 |
|
|
$ |
143,881 |
|
Less: Accretion of Discount on Acquired Loans |
|
$ |
3,914 |
|
|
$ |
3,483 |
|
|
$ |
236 |
|
|
$ |
11,589 |
|
|
$ |
889 |
|
Adjusted Net Interest Income (FTE) |
|
$ |
73,084 |
|
|
$ |
70,942 |
|
|
$ |
49,509 |
|
|
$ |
207,725 |
|
|
$ |
142,992 |
|
Average Earning Assets |
|
$ |
7,538,784 |
|
|
$ |
7,605,113 |
|
|
$ |
5,707,634 |
|
|
$ |
7,357,725 |
|
|
$ |
5,669,302 |
|
Net Interest Margin (FTE) |
|
|
4.06 |
% |
|
|
3.92 |
% |
|
|
3.47 |
% |
|
|
3.98 |
% |
|
|
3.39 |
% |
Adjusted Net Interest Margin (FTE) |
|
|
3.85 |
% |
|
|
3.74 |
% |
|
|
3.45 |
% |
|
|
3.77 |
% |
|
|
3.37 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20251027426981/en/
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M Rust, President and Chief Financial Officer
(812) 482-1314
Source: German American Bancorp, Inc.
