German American Bancorp, Inc. (GABC) Reports Strong Second Quarter 2025 Earnings
The second quarter 2025 earnings performance was driven by continued core net interest margin expansion, strong gains in net interest income and operating leverage, solid organic loan growth, continued high level of non-interest bearing demand deposits, healthy credit metrics and ongoing improved efficiencies resulting from the Heartland merger. Second quarter 2025 earnings also had the benefit of three months of Heartland operations while first quarter 2025 earnings included only two months.
The overall loan portfolio at June 30, 2025 remains stable and diversified. Loan growth reflected approximately
Total deposits declined in the second quarter over linked first quarter as the Company leveraged its strong liquidity position to reduce the higher cost Heartland deposits post-acquisition. Non-interest bearing demand deposit accounts continued to remain strong representing over
___________________________________________ |
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(1) |
Adjusted net income and adjusted earnings per share are non-GAAP financial measures that management believes are useful in evaluating the financial results of the Company. See Use of Non-GAAP Financial Measures contained in this release. |
|
Non-interest income for the second quarter of 2025 increased
Non-interest expense for the second quarter of 2025 decreased
The Company also announced that its Board of Directors declared a regular quarterly cash dividend of
In June 2025, German American was once again awarded the Raymond James Community Bankers Cup for 2024 which recognizes the top
Dauby also stated, “We are extremely pleased with our ability to build upon the momentum from our first quarter acquisition of Heartland with our strong operating performance in the second quarter. A smooth conversion of bank operating systems took place shortly after the conclusion of first quarter 2025, with very little disruption to employees and customers. We are encouraged by the potential benefits of a normalizing yield curve, the continued integration/optimization of Heartland operating expenses, and the strength of our lending pipelines throughout our legacy and newly-acquired geographic footprint. We believe we have positioned the Company for continued future growth and profitability given a stable economic environment.���
Dauby continued, “Thanks to the dedicated efforts of our relationship-focused team of professionals, 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
June 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 |
|
6/30/2025 |
|
3/31/2025 |
|
6/30/2024 |
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(dollars in thousands) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Commercial & Industrial Loans |
|
$ |
817,546 |
|
$ |
812,073 |
|
$ |
664,435 |
Commercial Real Estate Loans |
|
|
3,096,728 |
|
|
3,055,074 |
|
|
2,172,447 |
Agricultural Loans |
|
|
461,420 |
|
|
455,678 |
|
|
413,742 |
Consumer Loans |
|
|
574,323 |
|
|
543,897 |
|
|
424,647 |
Residential Mortgage Loans |
|
|
798,343 |
|
|
788,222 |
|
|
368,997 |
|
|
$ |
5,748,360 |
|
$ |
5,654,944 |
|
$ |
4,044,268 |
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 June 30, 2025, the Company held net discounts on acquired loans of
Non-performing assets totaled
The increase in non-performing assets during the second quarter of 2025 was largely related to a single acquired commercial relationship. The relationship was identified as an adversely classified relationship at the time of acquisition and has subsequently been placed on non-accrual status. The overall increase in non-performing assets in all periods presented was largely attributable to the Heartland acquisition. As of June 30, 2025, non-performing assets from the Heartland acquisition totaled approximately
Non-performing Assets |
|
|
|
|
|
|||
(dollars in thousands) |
|
|
|
|
|
|||
|
6/30/2025 |
|
3/31/2025 |
|
6/30/2024 |
|||
Non-Accrual Loans |
$ |
22,787 |
|
$ |
17,858 |
|
$ |
6,583 |
Past Due Loans (90 days or more) |
|
2,301 |
|
|
714 |
|
|
706 |
Total Non-Performing Loans |
|
25,088 |
|
|
18,572 |
|
|
7,289 |
Other Real Estate |
|
48 |
|
|
48 |
|
|
33 |
Total Non-Performing Assets |
$ |
25,136 |
|
$ |
18,620 |
|
$ |
7,322 |
|
|
|
|
|
|
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June 30, 2025 total deposits declined
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 |
|
6/30/2025 |
|
3/31/2025 |
|
6/30/2024 |
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(dollars in thousands) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Non-interest-bearing Demand Deposits |
|
$ |
1,896,737 |
|
$ |
1,889,673 |
|
$ |
1,448,467 |
IB Demand, Savings, and MMDA Accounts |
|
|
3,728,031 |
|
|
3,788,889 |
|
|
2,984,571 |
Time Deposits < |
|
|
521,802 |
|
|
443,285 |
|
|
348,025 |
Time Deposits > |
|
|
808,116 |
|
|
976,038 |
|
|
532,494 |
|
|
$ |
6,954,686 |
|
$ |
7,097,885 |
|
$ |
5,313,557 |
At June 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.
|
|
6/30/2025 Ratio |
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3/31/2025 Ratio |
|
6/30/2024 Ratio |
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Total Capital (to Risk Weighted Assets) |
|
|
|
|
|
|
|||
Consolidated |
|
15.21 |
% |
|
15.01 |
% |
|
16.78 |
% |
Bank |
|
13.93 |
% |
|
13.47 |
% |
|
14.52 |
% |
Tier 1 (Core) Capital (to Risk Weighted Assets) |
|
|
|
|
|
|
|||
Consolidated |
|
13.53 |
% |
|
13.26 |
% |
|
15.19 |
% |
Bank |
|
13.02 |
% |
|
12.56 |
% |
|
13.72 |
% |
Common Tier 1 (CET 1) Capital Ratio (to Risk Weighted Assets) |
|
|
|
|
|
|
|||
Consolidated |
|
13.00 |
% |
|
12.73 |
% |
|
14.49 |
% |
Bank |
|
13.02 |
% |
|
12.56 |
% |
|
13.72 |
% |
Tier 1 Capital (to Average Assets) |
|
|
|
|
|
|
|||
Consolidated |
|
10.93 |
% |
|
11.80 |
% |
|
11.92 |
% |
Bank |
|
10.51 |
% |
|
11.16 |
% |
|
10.78 |
% |
Results of Operations Highlights – Quarter ended June 30, 2025
Net income for the quarter ended June 30, 2025 totaled
Net income for both the first and second quarters of 2025 were impacted by acquisition-related expenses for the Heartland transaction that closed on February 1, 2025. In addition, net income for the second quarter of 2024 was impacted by the Company's sale of the assets of its wholly-owned subsidiary German American Insurance, Inc. (“GAI”) in a
The second quarter of 2025 results of operations included acquisition-related expenses of
On an adjusted basis, net income for the second quarter of 2025 was
Summary Average Balance Sheet |
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(Tax-equivalent basis / dollars in thousands) |
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Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
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|
|
June 30, 2025 |
|
March 31, 2025 |
|
June 30, 2024 |
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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 |
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Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal Funds Sold and Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Short-term Investments |
|
$ |
353,588 |
|
$ |
3,932 |
|
4.46 |
% |
|
$ |
200,538 |
|
$ |
2,216 |
|
4.48 |
% |
|
$ |
180,595 |
|
$ |
2,383 |
|
5.31 |
% |
Securities |
|
|
1,572,596 |
|
|
13,395 |
|
3.41 |
% |
|
|
1,586,106 |
|
|
13,392 |
|
3.38 |
% |
|
|
1,505,807 |
|
|
11,224 |
|
2.98 |
% |
Loans and Leases |
|
|
5,678,929 |
|
|
90,378 |
|
6.38 |
% |
|
|
5,135,859 |
|
|
81,927 |
|
6.46 |
% |
|
|
4,022,612 |
|
|
59,496 |
|
5.95 |
% |
Total Interest Earning Assets |
|
$ |
7,605,113 |
|
$ |
107,705 |
|
5.68 |
% |
|
$ |
6,922,503 |
|
$ |
97,535 |
|
5.70 |
% |
|
$ |
5,709,014 |
|
$ |
73,103 |
|
5.14 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand Deposit Accounts |
|
$ |
1,873,459 |
|
|
|
|
|
$ |
1,669,722 |
|
|
|
|
|
$ |
1,421,710 |
|
|
|
|
||||||
IB Demand, Savings, and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
MMDA Accounts |
|
$ |
3,858,196 |
|
$ |
17,739 |
|
1.84 |
% |
|
$ |
3,489,996 |
|
$ |
15,308 |
|
1.78 |
% |
|
$ |
3,049,511 |
|
$ |
14,006 |
|
1.85 |
% |
Time Deposits |
|
|
1,381,233 |
|
|
12,896 |
|
3.75 |
% |
|
|
1,270,137 |
|
|
11,720 |
|
3.74 |
% |
|
|
881,880 |
|
|
9,379 |
|
4.28 |
% |
FHLB Advances and Other Borrowings |
|
|
208,241 |
|
|
2,645 |
|
5.09 |
% |
|
|
216,613 |
|
|
2,616 |
|
4.90 |
% |
|
|
182,960 |
|
|
2,221 |
|
4.88 |
% |
Total Interest-Bearing Liabilities |
|
$ |
5,447,670 |
|
$ |
33,280 |
|
2.45 |
% |
|
$ |
4,976,746 |
|
$ |
29,644 |
|
2.42 |
% |
|
$ |
4,114,351 |
|
$ |
25,606 |
|
2.50 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of Funds |
|
|
|
|
|
1.76 |
% |
|
|
|
|
|
1.74 |
% |
|
|
|
|
|
1.80 |
% |
||||||
Net Interest Income, Tax-Equivalent Basis* |
|
|
|
$ |
74,425 |
|
|
|
|
|
$ |
67,891 |
|
|
|
|
|
$ |
47,497 |
|
|
||||||
Net Interest Margin |
|
|
|
|
|
3.92 |
% |
|
|
|
|
|
3.96 |
% |
|
|
|
|
|
3.34 |
% |
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___________________________________________ |
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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. |
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During the second quarter of 2025, net interest income, on a non tax-equivalent basis, totaled
The increase in net interest income during the second quarter of 2025 compared with both the first quarter of 2025 and the second quarter of 2024 was primarily attributable to a higher level of average earning assets driven by the Heartland acquisition and an improvement of the Company's net interest margin (excluding the impact of accretion of discounts on acquired loans).
The tax equivalent net interest margin for the quarter ended June 30, 2025 was
The continued improvement in the net interest margin, excluding the accretion of discount on acquired loans, during the second quarter of 2025 compared with both the first quarter of 2025 and second quarter of 2024 was largely driven by an improved yield on earning assets and a lower cost of deposits (excluding Heartland's deposit base). The lower cost of deposits was driven by the Federal Reserve's lowering of the Federal Funds rates over the last several months of 2024 and the Company's ability to correspondingly lower deposit costs.
During the quarter ended June 30, 2025, the Company recorded a provision for credit losses of
Net charge-offs totaled
During the quarter ended June 30, 2025, non-interest income totaled
On an adjusted basis, non-interest income for the second quarter 2025 was
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
||||
Non-interest Income |
|
6/30/2025 |
|
3/31/2025 |
|
6/30/2024 |
||||
(dollars in thousands) |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Wealth Management Fees |
|
$ |
4,165 |
|
$ |
3,836 |
|
$ |
3,783 |
|
Service Charges on Deposit Accounts |
|
|
3,714 |
|
|
3,486 |
|
|
3,093 |
|
Insurance Revenues |
|
|
— |
|
|
— |
|
|
1,506 |
|
Company Owned Life Insurance |
|
|
703 |
|
|
575 |
|
|
525 |
|
Interchange Fee Income |
|
|
5,057 |
|
|
4,421 |
|
|
4,404 |
|
Sale of Assets of German American Insurance |
|
|
— |
|
|
— |
|
|
38,323 |
|
Other Operating Income |
|
|
2,097 |
|
|
1,690 |
|
|
1,213 |
|
Subtotal |
|
|
15,736 |
|
|
14,008 |
|
|
52,847 |
|
Net Gains on Sales of Loans |
|
|
997 |
|
|
832 |
|
|
969 |
|
Net Gains (Losses) on Securities |
|
|
— |
|
|
— |
|
|
(34,893 |
) |
Total Non-interest Income |
|
$ |
16,733 |
|
$ |
14,840 |
|
$ |
18,923 |
|
Wealth management fees increased
Service charges on deposit accounts increased
No insurance revenues were recognized during the second quarter of 2025 or first quarter of 2025 as a result of the sale of the GAI assets effective June 1, 2024. Insurance revenues declined
Interchange fees increased
Other operating income increased
There were no securities transactions during the second or first quarters of 2025 that resulted in net gains or losses. The net loss on securities during the second quarter of 2024 in the amount of
During the quarter ended June 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 second quarter 2025 was
|
|
Quarter
|
|
Quarter
|
|
Quarter
|
|||
Non-interest Expense |
|
6/30/2025 |
|
3/31/2025 |
|
6/30/2024 |
|||
(dollars in thousands) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Salaries and Employee Benefits |
|
$ |
26,638 |
|
$ |
28,040 |
|
$ |
20,957 |
Occupancy, Furniture and Equipment Expense |
|
|
4,751 |
|
|
4,663 |
|
|
3,487 |
FDIC Premiums |
|
|
888 |
|
|
900 |
|
|
710 |
Data Processing Fees |
|
|
4,086 |
|
|
5,495 |
|
|
3,019 |
Professional Fees |
|
|
2,112 |
|
|
4,184 |
|
|
3,462 |
Advertising and Promotion |
|
|
1,300 |
|
|
1,454 |
|
|
909 |
Intangible Amortization |
|
|
2,803 |
|
|
2,070 |
|
|
532 |
Other Operating Expenses |
|
|
6,939 |
|
|
5,976 |
|
|
4,598 |
Total Non-interest Expense |
|
$ |
49,517 |
|
$ |
52,782 |
|
$ |
37,674 |
Salaries and benefits declined
Occupancy, furniture and equipment expense increased
Data processing fees declined
Professional fees declined
Intangible amortization increased
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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June 30, 2025 |
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March 31, 2025 |
|
June 30, 2024 |
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ASSETS |
|
|
|
|
|
||||||
Cash and Due from Banks |
$ |
99,871 |
|
|
$ |
79,113 |
|
|
$ |
70,418 |
|
Short-term Investments |
|
100,777 |
|
|
|
363,678 |
|
|
|
259,401 |
|
Investment Securities |
|
1,572,205 |
|
|
|
1,563,037 |
|
|
|
1,374,165 |
|
|
|
|
|
|
|
||||||
Loans Held-for-Sale |
|
13,880 |
|
|
|
6,713 |
|
|
|
15,419 |
|
|
|
|
|
|
|
||||||
Loans, Net of Unearned Income |
|
5,739,428 |
|
|
|
5,646,526 |
|
|
|
4,037,127 |
|
Allowance for Credit Losses |
|
(75,510 |
) |
|
|
(75,158 |
) |
|
|
(43,946 |
) |
Net Loans |
|
5,663,918 |
|
|
|
5,571,368 |
|
|
|
3,993,181 |
|
|
|
|
|
|
|
||||||
Stock in FHLB and Other Restricted Stock |
|
17,966 |
|
|
|
18,105 |
|
|
|
14,530 |
|
Premises and Equipment |
|
139,435 |
|
|
|
141,387 |
|
|
|
105,651 |
|
Goodwill and Other Intangible Assets |
|
417,159 |
|
|
|
418,463 |
|
|
|
184,095 |
|
Other Assets |
|
254,931 |
|
|
|
257,829 |
|
|
|
200,063 |
|
TOTAL ASSETS |
$ |
8,280,142 |
|
|
$ |
8,419,693 |
|
|
$ |
6,216,923 |
|
|
|
|
|
|
|
||||||
LIABILITIES |
|
|
|
|
|
||||||
Non-interest-bearing Demand Deposits |
$ |
1,896,737 |
|
|
$ |
1,889,673 |
|
|
$ |
1,448,467 |
|
Interest-bearing Demand, Savings, and Money Market Accounts |
|
3,728,031 |
|
|
|
3,788,889 |
|
|
|
2,984,571 |
|
Time Deposits |
|
1,329,918 |
|
|
|
1,419,323 |
|
|
|
880,519 |
|
Total Deposits |
|
6,954,686 |
|
|
|
7,097,885 |
|
|
|
5,313,557 |
|
|
|
|
|
|
|
||||||
Borrowings |
|
202,033 |
|
|
|
216,542 |
|
|
|
166,644 |
|
Other Liabilities |
|
53,919 |
|
|
|
59,224 |
|
|
|
48,901 |
|
TOTAL LIABILITIES |
|
7,210,638 |
|
|
|
7,373,651 |
|
|
|
5,529,102 |
|
|
|
|
|
|
|
||||||
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
||||||
Common Stock and Surplus |
|
743,230 |
|
|
|
742,431 |
|
|
|
420,434 |
|
Retained Earnings |
|
533,834 |
|
|
|
513,292 |
|
|
|
485,256 |
|
Accumulated Other Comprehensive Income (Loss) |
|
(207,560 |
) |
|
|
(209,681 |
) |
|
|
(217,869 |
) |
SHAREHOLDERS’ EQUITY |
|
1,069,504 |
|
|
|
1,046,042 |
|
|
|
687,821 |
|
|
|
|
|
|
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
8,280,142 |
|
|
$ |
8,419,693 |
|
|
$ |
6,216,923 |
|
|
|
|
|
|
|
||||||
END OF PERIOD SHARES OUTSTANDING |
|
37,492,814 |
|
|
|
37,481,716 |
|
|
|
29,679,248 |
|
|
|
|
|
|
|
||||||
TANGIBLE BOOK VALUE PER SHARE (1) |
$ |
17.40 |
|
|
$ |
16.74 |
|
|
$ |
16.97 |
|
|
|
|
|
|
|
||||||
(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 |
|
Six Months Ended |
|||||||||||||
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
|||||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
||||||||
Interest and Fees on Loans |
$ |
90,002 |
|
$ |
81,505 |
|
$ |
59,230 |
|
|
$ |
171,507 |
|
$ |
117,056 |
|
|
Interest on Short-term Investments |
|
3,932 |
|
|
2,216 |
|
|
2,383 |
|
|
|
6,148 |
|
|
2,682 |
|
|
Interest and Dividends on Investment Securities |
|
12,501 |
|
|
12,495 |
|
|
9,964 |
|
|
|
24,996 |
|
|
20,097 |
|
|
TOTAL INTEREST INCOME |
|
106,435 |
|
|
96,216 |
|
|
71,577 |
|
|
|
202,651 |
|
|
139,835 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
||||||||
Interest on Deposits |
|
30,635 |
|
|
27,028 |
|
|
23,385 |
|
|
|
57,663 |
|
|
44,374 |
|
|
Interest on Borrowings |
|
2,645 |
|
|
2,616 |
|
|
2,221 |
|
|
|
5,261 |
|
|
4,496 |
|
|
TOTAL INTEREST EXPENSE |
|
33,280 |
|
|
29,644 |
|
|
25,606 |
|
|
|
62,924 |
|
|
48,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
NET INTEREST INCOME |
|
73,155 |
|
|
66,572 |
|
|
45,971 |
|
|
|
139,727 |
|
|
90,965 |
|
|
Provision for Credit Losses |
|
1,200 |
|
|
15,300 |
|
|
625 |
|
|
|
16,500 |
|
|
1,525 |
|
|
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES |
|
71,955 |
|
|
51,272 |
|
|
45,346 |
|
|
|
123,227 |
|
|
89,440 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
||||||||
Net Gains on Sales of Loans |
|
997 |
|
|
832 |
|
|
969 |
|
|
|
1,829 |
|
|
1,720 |
|
|
Net Gains (Losses) on Securities |
|
— |
|
|
— |
|
|
(34,893 |
) |
|
|
— |
|
|
(34,858 |
) |
|
Other Non-interest Income |
|
15,736 |
|
|
14,008 |
|
|
52,847 |
|
|
|
29,744 |
|
|
67,883 |
|
|
TOTAL NON-INTEREST INCOME |
|
16,733 |
|
|
14,840 |
|
|
18,923 |
|
|
|
31,573 |
|
|
34,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
||||||||
Salaries and Benefits |
|
26,638 |
|
|
28,040 |
|
|
20,957 |
|
|
|
54,678 |
|
|
42,135 |
|
|
Other Non-interest Expenses |
|
22,879 |
|
|
24,742 |
|
|
16,717 |
|
|
|
47,621 |
|
|
32,277 |
|
|
TOTAL NON-INTEREST EXPENSE |
|
49,517 |
|
|
52,782 |
|
|
37,674 |
|
|
|
102,299 |
|
|
74,412 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Income before Income Taxes |
|
39,171 |
|
|
13,330 |
|
|
26,595 |
|
|
|
52,501 |
|
|
49,773 |
|
|
Income Tax Expense |
|
7,810 |
|
|
2,813 |
|
|
6,065 |
|
|
|
10,623 |
|
|
10,221 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
NET INCOME |
$ |
31,361 |
|
$ |
10,517 |
|
$ |
20,530 |
|
|
$ |
41,878 |
|
$ |
39,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
BASIC EARNINGS PER SHARE |
$ |
0.84 |
|
$ |
0.30 |
|
$ |
0.69 |
|
|
$ |
1.16 |
|
$ |
1.33 |
|
|
DILUTED EARNINGS PER SHARE |
$ |
0.84 |
|
$ |
0.30 |
|
$ |
0.69 |
|
|
$ |
1.16 |
|
$ |
1.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
37,479,342 |
|
|
34,680,719 |
|
|
29,667,770 |
|
|
|
36,087,762 |
|
|
29,663,631 |
|
|
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING |
|
37,479,342 |
|
|
34,680,719 |
|
|
29,667,770 |
|
|
|
36,087,762 |
|
|
29,663,631 |
|
|
GERMAN AMERICAN BANCORP, INC. |
||||||||||||||||||||
(unaudited, dollars in thousands except per share data) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||
|
|
June 30,
|
|
March 31,
|
|
June 30,
|
|
June 30,
|
|
June 30,
|
||||||||||
EARNINGS PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
||||||||||
Annualized Return on Average Assets |
|
|
1.49 |
% |
|
|
0.55 |
% |
|
|
1.32 |
% |
|
|
1.04 |
% |
|
|
1.28 |
% |
Annualized Return on Average Equity |
|
|
11.97 |
% |
|
|
4.52 |
% |
|
|
12.64 |
% |
|
|
8.46 |
% |
|
|
12.11 |
% |
Annualized Return on Average Tangible Equity (1) |
|
|
19.87 |
% |
|
|
7.10 |
% |
|
|
17.67 |
% |
|
|
13.68 |
% |
|
|
16.92 |
% |
Net Interest Margin |
|
|
3.92 |
% |
|
|
3.96 |
% |
|
|
3.34 |
% |
|
|
3.94 |
% |
|
|
3.34 |
% |
Efficiency Ratio (2) |
|
|
51.25 |
% |
|
|
61.30 |
% |
|
|
36.66 |
% |
|
|
56.04 |
% |
|
|
44.77 |
% |
Net Overhead Expense to Average Earning Assets (3) |
|
|
1.72 |
% |
|
|
2.19 |
% |
|
|
1.31 |
% |
|
|
1.95 |
% |
|
|
1.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
ASSET QUALITY RATIOS |
|
|
|
|
|
|
|
|
|
|
||||||||||
Annualized Net Charge-offs to Average Loans |
|
|
0.06 |
% |
|
|
0.04 |
% |
|
|
0.04 |
% |
|
|
0.05 |
% |
|
|
0.07 |
% |
Allowance for Credit Losses to Period End Loans |
|
|
1.32 |
% |
|
|
1.33 |
% |
|
|
1.09 |
% |
|
|
|
|
||||
Non-performing Assets to Period End Assets |
|
|
0.30 |
% |
|
|
0.22 |
% |
|
|
0.12 |
% |
|
|
|
|
||||
Non-performing Loans to Period End Loans |
|
|
0.44 |
% |
|
|
0.33 |
% |
|
|
0.18 |
% |
|
|
|
|
||||
Loans 30-89 Days Past Due to Period End Loans |
|
|
0.46 |
% |
|
|
0.36 |
% |
|
|
0.32 |
% |
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
||||||||||
Average Assets |
|
$ |
8,424,328 |
|
|
$ |
7,628,810 |
|
|
$ |
6,230,676 |
|
|
$ |
8,028,766 |
|
|
$ |
6,166,523 |
|
Average Earning Assets |
|
$ |
7,605,113 |
|
|
$ |
6,922,503 |
|
|
$ |
5,709,014 |
|
|
$ |
7,265,693 |
|
|
$ |
5,649,925 |
|
Average Total Loans |
|
$ |
5,678,929 |
|
|
$ |
5,135,859 |
|
|
$ |
4,022,612 |
|
|
$ |
5,408,894 |
|
|
$ |
3,997,422 |
|
Average Demand Deposits |
|
$ |
1,873,459 |
|
|
$ |
1,669,722 |
|
|
$ |
1,421,710 |
|
|
$ |
1,772,153 |
|
|
$ |
1,423,975 |
|
Average Interest Bearing Liabilities |
|
$ |
5,447,670 |
|
|
$ |
4,976,746 |
|
|
$ |
4,114,351 |
|
|
$ |
5,213,509 |
|
|
$ |
4,043,715 |
|
Average Equity |
|
$ |
1,048,227 |
|
|
$ |
931,386 |
|
|
$ |
649,886 |
|
|
$ |
990,129 |
|
|
$ |
653,334 |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Period End Non-performing Assets (4) |
|
$ |
25,136 |
|
|
$ |
18,620 |
|
|
$ |
7,322 |
|
|
|
|
|
||||
Period End Non-performing Loans (5) |
|
$ |
25,088 |
|
|
$ |
18,572 |
|
|
$ |
7,289 |
|
|
|
|
|
||||
Period End Loans 30-89 Days Past Due (6) |
|
$ |
26,294 |
|
|
$ |
20,093 |
|
|
$ |
12,766 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Tax-Equivalent Net Interest Income |
|
$ |
74,425 |
|
|
$ |
67,891 |
|
|
$ |
47,497 |
|
|
$ |
142,316 |
|
|
$ |
94,136 |
|
Net Charge-offs during Period |
|
$ |
848 |
|
|
$ |
486 |
|
|
$ |
433 |
|
|
$ |
1,334 |
|
|
$ |
1,344 |
|
(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. |
|||||||||||||
GERMAN AMERICAN BANCORP, INC.
NON-GAAP RECONCILIATIONS
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.
Non-GAAP Reconciliation – Net Income and Earnings Per Share |
|
Three Months Ended |
||||||||
(Dollars in Thousands, except per share amounts) |
|
06/30/2025 |
|
03/31/2025 |
|
06/30/2024 |
||||
Net Income, as reported |
|
$ |
31,361 |
|
$ |
10,517 |
|
$ |
20,530 |
|
Adjustments: |
|
|
|
|
|
|
||||
Plus: CECL Day 2 non-PCD provision |
|
|
— |
|
|
12,150 |
|
|
— |
|
Plus: Non-recurring merger-related expenses |
|
|
697 |
|
|
4,620 |
|
|
318 |
|
Less: Loss on securities restructuring |
|
|
— |
|
|
— |
|
|
(27,189 |
) |
Less: Income from GAI operations |
|
|
— |
|
|
— |
|
|
210 |
|
Less: Gain on sale of GAI assets |
|
|
— |
|
|
— |
|
|
27,476 |
|
Adjusted Net Income |
|
$ |
32,058 |
|
$ |
27,287 |
|
$ |
20,351 |
|
|
|
|
|
|
|
|
||||
Weighted Average Shares Outstanding |
|
|
37,479,342 |
|
|
34,680,719 |
|
|
29,667,770 |
|
|
|
|
|
|
|
|
||||
Earnings Per Share, as reported |
|
$ |
0.84 |
|
$ |
0.30 |
|
$ |
0.69 |
|
Earnings Per Share, as adjusted |
|
$ |
0.86 |
|
$ |
0.79 |
|
$ |
0.69 |
|
Non-GAAP Reconciliation – Non-Interest Income and Non-Interest Expense |
|
Three Months Ended |
||||||||
(Dollars in Thousands) |
|
06/30/2025 |
|
03/31/2025 |
|
06/30/2024 |
||||
|
|
|
|
|
|
|
||||
Non-Interest Income |
|
$ |
16,733 |
|
$ |
14,840 |
|
$ |
18,923 |
|
Less: Loss on securities restructuring |
|
|
— |
|
|
— |
|
|
(34,893 |
) |
Less: Revenue from GAI operations |
|
|
— |
|
|
— |
|
|
1,510 |
|
Less: Gain on sale of GAI assets |
|
|
— |
|
|
— |
|
|
38,323 |
|
Adjusted Non-Interest Income |
|
$ |
16,733 |
|
$ |
14,840 |
|
$ |
13,983 |
|
|
|
|
|
|
|
|
||||
Non-Interest Expense |
|
$ |
49,517 |
|
$ |
52,782 |
|
$ |
37,674 |
|
Less: Non-recurring merger-related expenses |
|
|
929 |
|
|
5,932 |
|
|
425 |
|
Less: Expense from GAI operations |
|
|
— |
|
|
— |
|
|
1,230 |
|
Less: Expense from sale of GAI assets |
|
|
— |
|
|
— |
|
|
1,816 |
|
Adjusted Non-Interest Expense |
|
$ |
48,588 |
|
$ |
46,850 |
|
$ |
34,203 |
|
Non-GAAP Reconciliation – Efficiency Ratio |
|
Three Months Ended |
||||||||||
(Dollars in Thousands) |
|
06/30/2025 |
|
03/31/2025 |
|
06/30/2024 |
||||||
Adjusted Non-Interest Expense (from above) |
|
$ |
48,588 |
|
|
$ |
46,850 |
|
|
$ |
34,203 |
|
Less: Intangible Amortization |
|
|
2,803 |
|
|
|
2,070 |
|
|
|
532 |
|
Adjusted Non-Interest Expense excluding Intangible Amortization |
|
$ |
45,785 |
|
|
$ |
44,780 |
|
|
$ |
33,671 |
|
|
|
|
|
|
|
|
||||||
Net Interest Income |
|
$ |
73,155 |
|
|
$ |
66,572 |
|
|
$ |
45,971 |
|
Add: FTE Adjustment |
|
|
1,270 |
|
|
|
1,319 |
|
|
|
1,526 |
|
Net Interest Income (FTE) |
|
|
74,425 |
|
|
|
67,891 |
|
|
|
47,497 |
|
|
|
|
|
|
|
|
||||||
Adjusted Non-Interest Income (from above) |
|
|
16,733 |
|
|
|
14,840 |
|
|
|
13,983 |
|
|
|
|
|
|
|
|
||||||
Total Adjusted Total Revenue |
|
$ |
91,158 |
|
|
$ |
82,731 |
|
|
$ |
61,480 |
|
|
|
|
|
|
|
|
||||||
Efficiency Ratio |
|
|
51.25 |
% |
|
|
61.30 |
% |
|
|
36.66 |
% |
Adjusted Efficiency Ratio |
|
|
50.23 |
% |
|
|
54.13 |
% |
|
|
54.77 |
% |
Non-GAAP Reconciliation – Net Interest Margin |
|
Three Months Ended |
||||||||||
(Dollars in Thousands) |
|
06/30/2025 |
|
03/31/2025 |
|
06/30/2024 |
||||||
Net Interest Income (FTE) from above |
|
$ |
74,425 |
|
|
$ |
67,891 |
|
|
$ |
47,497 |
|
Less: Accretion of Discount on Acquired Loans |
|
$ |
3,483 |
|
|
$ |
4,192 |
|
|
$ |
293 |
|
Adjusted Net Interest Income (FTE) |
|
$ |
70,942 |
|
|
$ |
63,699 |
|
|
$ |
47,204 |
|
Average Earning Assets |
|
$ |
7,605,113 |
|
|
$ |
6,922,503 |
|
|
$ |
5,709,014 |
|
Net Interest Margin (FTE) |
|
|
3.92 |
% |
|
|
3.96 |
% |
|
|
3.34 |
% |
Adjusted Net Interest Margin (FTE) |
|
|
3.74 |
% |
|
|
3.72 |
% |
|
|
3.32 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250728991383/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.
