• Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Quantisnow Logo
  • Live Feeds
    • Press Releases
    • Insider Trading
    • FDA Approvals
    • Analyst Ratings
    • Insider Trading
    • SEC filings
    • Market insights
  • Analyst Ratings
  • Alerts
  • Subscriptions
  • Settings
  • RSS Feeds
Dashboard
    Quantisnow Logo

    © 2025 quantisnow.com
    Democratizing insights since 2022

    Services
    Live news feedsRSS FeedsAlerts
    Company
    AboutQuantisnow PlusContactJobs
    Legal
    Terms of usePrivacy policyCookie policy

    German American Bancorp, Inc. (GABC) Reports First Quarter 2025 Earnings; Closes on Heartland Merger

    4/28/25 4:30:00 PM ET
    $GABC
    Major Banks
    Finance
    Get the next $GABC alert in real time by email

    German American Bancorp, Inc. (NASDAQ:GABC) reported first quarter earnings of $10.5 million, or $0.30 per share. The first quarter earnings included the results of Heartland BancCorp ("Heartland"), the parent company of Heartland Bank, which was acquired by German American on February 1, 2025. The first quarter of 2025 included one-time merger and acquisition costs of $5.9 million and "Day 2" provision under the current expected credit loss ("CECL") model for Heartland of $16.2 million (total impact of $16.8 million on an after-tax basis). As a result, quarterly earnings declined by approximately $12.7 million, or 62% on a per share basis, from 2024 fourth quarter earnings of $23.2 million, or $0.78 per share. On an adjusted basis, net income for first quarter 2025 was $27.3 million, or $0.79 per share, compared to $23.4 million, or $0.79 per share, for fourth quarter 2024.1

    While first quarter 2025 operating performance compared to linked fourth quarter 2024 was impacted significantly by one-time merger costs, the quarter was also highlighted by net interest margin expansion, strong organic commercial real estate loan growth, strong organic non-interest bearing demand deposit growth, strong credit metrics and controlled operating expenses.

    The net interest margin for the first quarter 2025 of 3.96% reflects a 42 basis point expansion over linked fourth quarter 2024 margin of 3.54%. Accretion of loan discounts on acquired loans contributed 24 basis points of that expansion. The continued improvement in the net interest margin, excluding the accretion, was primarily attributable to higher earning asset yields driven by loan growth, repricing of loans, and improved yields on the securities portfolio.

    Total end of period assets for the Company totaled $8.42 billion at March 31, 2025, representing an increase of $2.12 billion over December 31, 2024 total assets, with March 31, 2025 loans increasing by $1.52 billion on a linked quarter basis, driven mostly by the Heartland acquisition. The overall loan portfolio at March 31, 2025 remains stable and diversified. Loan growth, excluding acquired loans, reflected 4% organic growth from March 31, 2024 to March 31, 2025, and reflected 4% organic growth on a linked quarter basis when excluding seasonal agricultural line reductions. The first quarter 2025 provision for credit losses of $15.3 million included the Heartland acquisition related Day 2 CECL provision of $16.2 million. The Company's loan portfolio, post-acquisition, reflects strong credit metrics, as non-performing assets were 0.22% of period end assets and non-performing loans totaled 0.33% of period end loans. Net charge offs were only 4 basis points of average loans for the first quarter 2025.

    End of period deposits at March 31, 2025 increased by $1.77 billion when compared with December 31, 2024, largely as a result of the Heartland acquisition. Excluding acquisition-related deposits, total deposits were relatively stable on a linked quarter basis, which was positive given the seasonal run-off of public funds in the first quarter. Another positive trend was the $21 million increase, or 6% on an annualized basis, in non-interest bearing demand deposit accounts at March 31, 2025 (excluding acquisition-related deposits), compared to fourth quarter 2024, which accounts represented 27% of total deposits at March 31, 2025. Heartland's deposit portfolio composition did not result in any significant changes to the newly-merged entity's composition.

    ___________________________________________

    (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 increased $726,000, or 5%, for the quarter ended March 31, 2025 when compared to the quarter ended December 31, 2024 and was predominately driven by the Heartland acquisition.

    Non-interest expense for the first quarter of 2025 increased $16.9 million, or 47%, over linked fourth quarter 2024, of which $5.9 million resulted from acquisition-related expenses in connection with the Heartland transaction and the remaining increase was primarily attributable to the costs associated with Heartland's operations during the first quarter of 2025. The Heartland-related expenses are expected to be reduced going forward, as the operations of Heartland are fully integrated into German American. Operating expenses, excluding one-time acquisition-related expenses, were relatively stable from fourth quarter 2024 to first quarter 2025.

    The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.29 per share, which will be payable on May 20, 2025 to shareholders of record as of May 10, 2025.

    In February 2025, German American was ranked second in the nation on the prestigious Forbes America's Best Banks 20252 list. D. Neil Dauby, German American's Chairman & CEO stated, "We believe this ranking acknowledges our strong financial focus and stability, as well as our unwavering commitment to excellence for our employees, customers, communities and shareholders."

    Dauby also stated, "We are extremely pleased to deliver yet another solid quarter of operating performance as German American continues to position itself for continued profitability and growth with the closing of the Heartland merger early in the first quarter of 2025. While the first quarter results were impacted by the significant acquisition-related expenses and CECL Day 2 provision for credit losses in connection with the completion of the Heartland merger, we were pleased with the level of incremental quarter-over-quarter growth. 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. 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 Indiana, Kentucky and Ohio communities."

    ___________________________________________

    (2)

    ©2025 Forbes Media LLC. All rights reserved. Used under license.

    Balance Sheet Highlights

    On February 1, 2025, German American Bancorp, Inc. 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. Heartland, headquartered in Whitehall, Ohio, operated 20 retail banking offices located in Columbus, Ohio and Greater Cincinnati. As of the closing of the transaction, Heartland had total assets of approximately $1.94 billion, total loans of approximately $1.58 billion, and total deposits of approximately $1.73 billion. The Company issued approximately 7.74 million shares of its common stock, and paid approximately $23.1 million in cash, in exchange for all of the issued and outstanding shares of common stock of Heartland and in cancellation of all options to acquire Heartland common stock outstanding as of the effective time of the merger.

    Total assets for the Company totaled $8.420 billion at March 31, 2025, representing an increase of $2.124 billion compared with December 31, 2024 and an increase of $2.308 billion compared with March 31, 2024. The increase in total assets at March 31, 2025 compared with year-end 2024 and March 31, 2024 was in large part attributable to the Heartland acquisition, with continued organic loan growth also contributing to the increase when compared to March 31, 2024.

    March 31, 2025 total loans increased $1.522 billion compared with December 31, 2024 and increased $1.676 billion compared with March 31, 2024. The increase in total loans at March 31, 2025 compared with year-end 2024 was largely due to the acquisition of Heartland. The increase at March 31, 2025 compared with March 31, 2024 was also largely due to the acquisition of Heartland and to a lesser extent organic loan growth from throughout the Company's existing market areas.

    Excluding loans acquired through the Heartland acquisition, total loans increased $16.8 million, or approximately 2% on an annualized basis, at March 31, 2025 compared with December 31, 2024 and $171.1 million, or 4%, compared with March 31, 2024. Commercial and industrial loans declined approximately $11.0 million, or 7% on an annualized basis, during the first quarter of 2025 compared with year-end 2024, commercial real estate loans increased $54.7 million, or 10% on an annualized basis, while agricultural loans seasonally declined $22.4 million, or 21% on an annualized basis. During the first quarter of 2025 compared with year-end 2024, retail loans declined $4.5 million, or 2% on an annualized basis.

    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 54% of the portfolio, followed by commercial and industrial loans at 14% of the portfolio, residential mortgage loans at 14% of the portfolio (up from 9% at year-end 2024), agricultural loans at 8% of the portfolio, and home equity loans at 7% of the portfolio. The Company's commercial lending is extended to various industries, including multi-family housing and lodging, agribusiness and manufacturing, as well as health care, wholesale, and retail services.

    End of Period Loan Balances

     

    3/31/2025

     

    12/31/2024

     

    3/31/2024

    (dollars in thousands)

     

     

     

     

     

     

     

     

     

     

     

     

     

    Commercial & Industrial Loans

     

    $

    812,073

     

    $

    671,038

     

    $

    646,162

    Commercial Real Estate Loans

     

     

    3,055,074

     

     

    2,224,872

     

     

    2,148,808

    Agricultural Loans

     

     

    455,678

     

     

    431,037

     

     

    400,733

    Consumer Loans

     

     

    543,897

     

     

    448,872

     

     

    421,980

    Residential Mortgage Loans

     

     

    788,222

     

     

    357,448

     

     

    361,236

     

     

    $

    5,654,944

     

    $

    4,133,267

     

    $

    3,978,919

    The Company's allowance for credit losses totaled $75.2 million at March 31, 2025 compared to $44.4 million at year-end 2024 and $43.8 million at March 31, 2024. The allowance for credit losses represented 1.33% of period-end loans at March 31, 2025, 1.08% at year-end 2024 and 1.10% of period-end loans at March 31, 2024. At March 31, 2025, the Company changed its estimate methodology for the allowance for credit losses from the static pool to the discounted cash flow method which resulted in minimal impact to the allowance.

    The Company added $32.1 million to the allowance for credit losses in conjunction with the closing of the Heartland acquisition on February 1, 2025, related to the Heartland loan portfolio. Of the increase in the allowance for credit losses for the Heartland portfolio, $16.2 million was recorded through the provision for credit losses on "Day 2" under the CECL model.

    Under the CECL model, certain acquired loans continue to carry a fair value discount as well as an allowance for credit losses. As of March 31, 2025, the Company held net discounts on acquired loans of $64.3 million, which included $61.8 million related to the Heartland loan portfolio.

    Non-performing assets totaled $18.6 million at March 31, 2025, $11.1 million at year-end 2024, and $10.0 million at March 31, 2024. Non-performing assets represented 0.22% of total assets at March 31, 2025, 0.18% at year-end 2024 and 0.16% at March 31, 2024. Non-performing loans represented 0.33% of total loans at March 31, 2025, 0.27% at year-end 2024 and 0.25% at March 31, 2024. The increase in non-performing assets was primarily attributable to the Heartland acquisition. As of March 31, 2025, non-performing assets from the Heartland acquisition totaled approximately $5.4 million.

    Non-performing Assets

     

     

     

     

     

    (dollars in thousands)

     

     

     

     

     

     

    3/31/2025

     

    12/31/2024

     

    3/31/2024

    Non-Accrual Loans

    $

    17,858

     

    $

    10,934

     

    $

    9,898

    Past Due Loans (90 days or more)

     

    714

     

     

    188

     

     

    85

    Total Non-Performing Loans

     

    18,572

     

     

    11,122

     

     

    9,983

    Other Real Estate

     

    48

     

     

    —

     

     

    —

    Total Non-Performing Assets

    $

    18,620

     

    $

    11,122

     

    $

    9,983

     

     

     

     

     

     

    March 31, 2025 total deposits increased $1.769 billion compared to year-end 2024 and increased $1.879 billion compared with March 31, 2024. The increase in total deposits at March 31, 2025 compared with both year-end 2024 and March 31, 2024 was largely attributable to the Heartland acquisition. As of March 31, 2025, deposits from the Heartland acquisition totaled $1.755 billion. Excluding the deposits related to the acquisition, total deposits were relatively stable with an increase of $13.4 million, or 1% on an annualized basis, at March 31, 2025 compared with year-end 2024 and an increase of $123.1 million, or 2%, compared with March 31, 2024.

    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 with March 31, 2025 non-interest deposits totaling 27% of total deposits while non-interest deposits totaled 26% at year-end 2024 and 28% at March 31, 2024.

    End of Period Deposit Balances

     

    3/31/2025

     

    12/31/2024

     

    3/31/2024

    (dollars in thousands)

     

     

     

     

     

     

     

     

     

     

     

     

     

    Non-interest-bearing Demand Deposits

     

    $

    1,889,673

     

    $

    1,399,270

     

    $

    1,463,933

    IB Demand, Savings, and MMDA Accounts

     

     

    3,788,889

     

     

    3,013,204

     

     

    2,918,459

    Time Deposits < $100,000

     

     

    443,285

     

     

    327,080

     

     

    328,804

    Time Deposits > $100,000

     

     

    976,038

     

     

    589,521

     

     

    508,151

     

     

    $

    7,097,885

     

    $

    5,329,075

     

    $

    5,219,347

    At March 31, 2025, the capital levels for the Company and its subsidiary bank, German American Bank (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.

     

     

    3/31/2025

    Ratio

     

    12/31/2024

    Ratio

     

    3/31/2024

    Ratio

    Total Capital (to Risk Weighted Assets)

     

     

     

     

     

     

    Consolidated

     

    15.23

    %

     

    17.15

    %

     

    16.57

    %

    Bank

     

    13.69

    %

     

    15.02

    %

     

    14.53

    %

    Tier 1 (Core) Capital (to Risk Weighted Assets)

     

     

     

     

     

     

    Consolidated

     

    13.26

    %

     

    15.72

    %

     

    14.97

    %

    Bank

     

    12.56

    %

     

    14.23

    %

     

    13.73

    %

    Common Tier 1 (CET 1) Capital Ratio

    (to Risk Weighted Assets)

     

     

     

     

     

     

    Consolidated

     

    12.73

    %

     

    15.02

    %

     

    14.27

    %

    Bank

     

    12.56

    %

     

    14.23

    %

     

    13.73

    %

    Tier 1 Capital (to Average Assets)

     

     

     

     

     

     

    Consolidated

     

    11.80

    %

     

    12.28

    %

     

    12.01

    %

    Bank

     

    11.16

    %

     

    11.12

    %

     

    11.02

    %

    Results of Operations Highlights – Quarter ended March 31, 2025

    Net income for the quarter ended March 31, 2025 totaled $10,517,000, or $0.30 per share, a decline of 62% on a per share basis compared with the fourth quarter 2024 net income of $23,211,000, or $0.78 per share, and a decline of 53% on a per share basis compared with the first quarter 2024 net income of $19,022,000, or $0.64 per share. The change in net income during the first quarter of 2025, compared with both the fourth quarter of 2024 and the first quarter of 2024, was largely impacted by acquisition-related expenses for the Heartland transaction that closed on February 1, 2025.

    The first quarter of 2025 results of operations included acquisition-related expenses of $5,932,000 ($4,620,000, on an after tax basis) and also included Day 2 provision for credit losses under the CECL model of $16,200,000 ($12,150,000, on an after tax basis). The fourth quarter of 2024 results of operations included acquisition-related expenses of approximately $198,000 ($154,000, on an after tax basis). On an adjusted basis, net income for first quarter 2025 was $27,287,000 or $0.79 per share, compared to $23,365,000, or $0.79 per share, for fourth quarter 2024. Adjusted net income and adjusted earnings per share are non-GAAP financial measures. 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.

    Summary Average Balance Sheet

    (Tax-equivalent basis / dollars in thousands)

     

     

    Quarter Ended

     

    Quarter Ended

     

    Quarter Ended

     

     

    March 31, 2025

     

    December 31, 2024

     

    March 31, 2024

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    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

     

    $

    200,538

     

    $

    2,216

     

    4.48

    %

     

    $

    238,883

     

    $

    2,792

     

    4.65

    %

     

    $

    22,903

     

    $

    299

     

    5.25

    %

    Securities

     

     

    1,586,106

     

     

    13,392

     

    3.38

    %

     

     

    1,545,772

     

     

    12,579

     

    3.26

    %

     

     

    1,595,700

     

     

    11,537

     

    2.89

    %

    Loans and Leases

     

     

    5,135,859

     

     

    81,927

     

    6.46

    %

     

     

    4,094,333

     

     

    62,356

     

    6.06

    %

     

     

    3,972,232

     

     

    58,067

     

    5.88

    %

    Total Interest Earning Assets

     

    $

    6,922,503

     

    $

    97,535

     

    5.70

    %

     

    $

    5,878,988

     

    $

    77,727

     

    5.27

    %

     

    $

    5,590,835

     

    $

    69,903

     

    5.02

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Liabilities

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Demand Deposit Accounts

     

    $

    1,669,722

     

     

     

     

     

    $

    1,422,400

     

     

     

     

     

    $

    1,426,239

     

     

     

     

    IB Demand, Savings, and

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    MMDA Accounts

     

    $

    3,489,996

     

    $

    15,308

     

    1.78

    %

     

    $

    3,058,257

     

    $

    13,638

     

    1.77

    %

     

    $

    2,969,755

     

    $

    12,823

     

    1.74

    %

    Time Deposits

     

     

    1,270,137

     

     

    11,720

     

    3.74

    %

     

     

    911,613

     

     

    9,235

     

    4.03

    %

     

     

    806,976

     

     

    8,166

     

    4.07

    %

    FHLB Advances and Other Borrowings

     

     

    216,613

     

     

    2,616

     

    4.90

    %

     

     

    214,915

     

     

    2,650

     

    4.91

    %

     

     

    196,348

     

     

    2,275

     

    4.66

    %

    Total Interest-Bearing Liabilities

     

    $

    4,976,746

     

    $

    29,644

     

    2.42

    %

     

    $

    4,184,785

     

    $

    25,523

     

    2.43

    %

     

    $

    3,973,079

     

    $

    23,264

     

    2.36

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Cost of Funds

     

     

     

     

     

    1.74

    %

     

     

     

     

     

    1.73

    %

     

     

     

     

     

    1.67

    %

    Net Interest Income, Tax-Equivalent Basis*

     

     

     

    $

    67,891

     

     

     

     

     

    $

    52,204

     

     

     

     

     

    $

    46,639

     

     

    Net Interest Margin

     

     

     

     

     

    3.96

    %

     

     

     

     

     

    3.54

    %

     

     

     

     

     

    3.35

    %

    ___________________________________________

    * 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 first quarter of 2025, net interest income, on a non tax-equivalent basis, totaled $66,572,000, an increase of $15,540,000, or 30%, compared to the fourth quarter of 2024 net interest income of $51,032,000 and an increase of $21,578,000, or 48%, compared to the first quarter of 2024 net interest income of $44,994,000.

    The increase in net interest income during the first quarter of 2025 compared with both the fourth quarter of 2024 and the first quarter of 2024 was primarily attributable to a higher level of earning assets driven by the Heartland acquisition and expansion of the Company's net interest margin.

    The tax equivalent net interest margin for the quarter ended March 31, 2025 was 3.96% compared with 3.54% in the fourth quarter of 2024 and 3.35% in the first quarter of 2024. 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 $4,192,000 during the first quarter of 2025, $617,000 during the fourth quarter of 2024 and $360,000 during the first quarter of 2024. Accretion of loan discounts on acquired loans contributed approximately 24 basis points to the net interest margin in the first quarter of 2025, 4 basis points in the fourth quarter of 2024 and 3 basis points in the first quarter of 2024.

    The continued improvement in the net interest margin, excluding the accretion of discount on acquired loans, during the first quarter of 2025 compared with both the fourth quarter of 2024 and first quarter 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 March 31, 2025, the Company recorded a provision for credit losses of $15,300,000 compared with a provision for credit losses of $625,000 in the fourth quarter of 2024 and a provision for credit losses of $900,000 during the first quarter of 2024. During the first quarter of 2025, the provision for credit losses included $16,200,000 for the Day 2 CECL addition to the allowance for credit loss related to the Heartland acquisition.

    Net charge-offs totaled $486,000, or 4 basis points on an annualized basis, of average loans outstanding during the first quarter of 2025 compared with $313,000, or 3 basis points on an annualized basis, of average loans during the fourth quarter of 2024 and $911,000, or 9 basis points, of average loans during the first quarter of 2024.

    During the quarter ended March 31, 2025, non-interest income totaled $14,840,000, an increase of $726,000, or 5%, compared with the fourth quarter of 2024 and a decline of $982,000, or 6%, compared with the first quarter of 2024. The increase in non-interest income during the first quarter of 2025 compared with the fourth quarter of 2024 was predominantly driven by the Heartland acquisition. The decline in the first quarter of 2025 compared to the same period of 2024 was the result of the sale of the German American Insurance ("GAI") assets during the second quarter of 2024. On an adjusted basis, non-interest income for first quarter 2025 was $14,840,000 compared to $12,898,000 for first quarter 2024. Adjusted non-interest income is 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.

     

     

    Quarter Ended

     

    Quarter Ended

     

    Quarter Ended

    Non-interest Income

     

    3/31/2025

     

    12/31/2024

     

    3/31/2024

    (dollars in thousands)

     

     

     

     

     

     

     

     

     

     

     

     

     

    Wealth Management Fees

     

    $

    3,836

     

    $

    3,687

     

    $

    3,366

    Service Charges on Deposit Accounts

     

     

    3,486

     

     

    3,344

     

     

    2,902

    Insurance Revenues

     

     

    —

     

     

    —

     

     

    2,878

    Company Owned Life Insurance

     

     

    575

     

     

    616

     

     

    441

    Interchange Fee Income

     

     

    4,421

     

     

    4,244

     

     

    4,087

    Other Operating Income

     

     

    1,690

     

     

    1,593

     

     

    1,362

    Subtotal

     

     

    14,008

     

     

    13,484

     

     

    15,036

    Net Gains on Sales of Loans

     

     

    832

     

     

    630

     

     

    751

    Net Gains (Losses) on Securities

     

     

    —

     

     

    —

     

     

    35

    Total Non-interest Income

     

    $

    14,840

     

    $

    14,114

     

    $

    15,822

    Wealth management fees increased $149,000, or 4%, during the first quarter of 2025 compared with the fourth quarter of 2024 and increased $470,000, or 14%, compared with the first quarter of 2024. The increase during the first quarter of 2025 compared with the fourth quarter of 2024 was largely attributable to the Heartland acquisition. The increase during the first quarter of 2025 compared with the first quarter of 2024 was largely attributable to increased assets under management driven by healthy capital markets throughout 2024 and continued strong new business results in addition to the Heartland acquisition.

    Service charges on deposit accounts increased $142,000, or 4%, during the quarter ended March 31, 2025 compared with the fourth quarter of 2024 and increased $584,000, or 20%, compared with the first quarter of 2024. The increase during the first quarter of 2025 compared with the fourth quarter of 2024 was largely attributable to the Heartland acquisition. The increase during the first quarter of 2025 compared with the first quarter of 2024 was largely related to increased customer utilization of deposit services in addition to the Heartland acquisition.

    No insurance revenues were recognized during the first quarter of 2025 or fourth quarter of 2024 as a result of the sale of the assets of GAI effective June 1, 2024. Insurance revenues declined $2,878,000 during the first quarter of 2025, compared with the first quarter of 2024, due to the sale.

    Interchange fees increased $177,000, or 4%, during the quarter ended March 31, 2025 compared with the fourth quarter of 2024 and increased $334,000, or 8%, compared with the first quarter of 2024. The increase during the first quarter of 2025 compared with both the fourth quarter of 2024 and first quarter of 2024 was primarily attributable to the Heartland acquisition.

    Other operating income increased $97,000, or 6%, during the first quarter of 2025 compared with the fourth quarter of 2024 and increased $328,000, or 24%, compared with the first quarter of 2024. The increase during the first quarter of 2025 compared with both the fourth quarter of 2024 and the first quarter of 2024 was primarily attributable to the Heartland acquisition partially mitigated by a lower level of fees associated with interest rate swap transactions with loan customers.

    During the quarter ended March 31, 2025, non-interest expense totaled $52,782,000, an increase of $16,943,000, or 47%, compared with the fourth quarter of 2024, and an increase of $16,044,000, or 44%, compared with the first quarter of 2024. The first quarter of 2025 non-interest expenses included approximately $5,932,000 of non-recurring acquisition-related expenses for the acquisition of Heartland while the fourth quarter of 2024 included approximately $198,000 in acquisition-related expenses. The primary drivers of the remaining increases in the first quarter of 2025 compared with both the fourth quarter of 2024 and first quarter of 2024 were the Heartland operating costs. On an adjusted basis, non-interest expense for first quarter 2025 was $46,850,000 compared to $35,641,000 for fourth quarter 2024 and $34,713,000 for first quarter 2024. Adjusted non-interest expense is 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.

     

     

    Quarter Ended

     

    Quarter Ended

     

    Quarter Ended

    Non-interest Expense

     

    3/31/2025

     

    12/31/2024

     

    3/31/2024

    (dollars in thousands)

     

     

     

     

     

     

     

     

     

     

     

     

     

    Salaries and Employee Benefits

     

    $

    28,040

     

    $

    20,404

     

    $

    21,178

    Occupancy, Furniture and Equipment Expense

     

     

    4,663

     

     

    3,773

     

     

    3,804

    FDIC Premiums

     

     

    900

     

     

    714

     

     

    729

    Data Processing Fees

     

     

    5,495

     

     

    3,257

     

     

    2,811

    Professional Fees

     

     

    4,184

     

     

    1,178

     

     

    1,595

    Advertising and Promotion

     

     

    1,454

     

     

    951

     

     

    1,138

    Intangible Amortization

     

     

    2,070

     

     

    438

     

     

    578

    Other Operating Expenses

     

     

    5,976

     

     

    5,124

     

     

    4,905

    Total Non-interest Expense

     

    $

    52,782

     

    $

    35,839

     

    $

    36,738

    Salaries and benefits increased $7,636,000, or 37%, during the quarter ended March 31, 2025 compared with the fourth quarter of 2024 and increased $6,862,000, or 32%, compared with the first quarter of 2024. The increase in salaries and benefits during the first quarter of 2025 compared with both the fourth quarter of 2024 and the first quarter of 2024 was largely attributable to the Heartland acquisition completed on February 1, 2025. The first quarter of 2025 included approximately $1,843,000 of acquisition-related salary and benefit costs of a non-recurring nature, with the remainder of the increase due primarily to the salaries and benefits costs for the Heartland employee base.

    Occupancy, furniture and equipment expense increased $890,000, or 24%, during the first quarter of 2025 compared with the fourth quarter of 2024 and increased $859,000, or 23%, compared to the first quarter of 2024. The increase during the first quarter of 2025 compared with both the fourth quarter of 2024 and first quarter of 2024 was primarily attributable to the operating costs of the Heartland branch network.

    Data processing fees increased $2,238,000, or 69%, during the first quarter of 2025 compared with the fourth quarter of 2024 and increased $2,684,000 or 95% compared with the first quarter of 2024. The increase during the first quarter of 2025 compared with both the fourth quarter of 2024 and the first quarter of 2024 was largely driven by operating costs of the existing Heartland systems and acquisition-related costs, which totaled approximately $1,323,000 during the first quarter of 2025.

    Professional fees increased $3,006,000, or 255%, in the first quarter of 2025 compared with the fourth quarter of 2024 and increased $2,589,000, or 162%, compared with the first quarter of 2024. The increase during the first quarter of 2025 to both comparative periods was due in large part to professional fees associated with the Heartland acquisition. Merger and acquisition related professional fees totaled approximately $2,661,000 during the first quarter of 2025 and approximately $123,000 during the fourth quarter of 2024.

    Intangible amortization increased $1,632,000, or 372%, during the first quarter of 2025 compared with the fourth quarter of 2024 and increased $1,492,000, or 258%, compared with the first quarter of 2024. The increase was attributable to the Heartland acquisition.

    Other operating expenses increased $852,000, or 17%, during the first quarter of 2025 compared with the fourth quarter of 2024 and increased $1,071,000, or 22%, compared with the first quarter of 2024. The increase in the first quarter of 2025 compared to both the fourth quarter of 2024 and the first quarter of 2024 was largely attributable to operating costs of Heartland.

    About German American

    German American Bancorp, Inc. (NASDAQ:GABC) is a financial holding company based in Jasper, Indiana. German American, through its banking subsidiary German American Bank, operates 94 banking offices located throughout Indiana (central/southern), Kentucky (northern/central/western), and Ohio (central/ southwest). In Columbus, Ohio and Greater Cincinnati, the Company does business as Heartland Bank, a Division of German American Bank. The Company also owns an investment brokerage subsidiary, German American Investment Services, Inc.

    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.

    (unaudited, dollars in thousands except per share data)

     

     

     

     

     

     

    Consolidated Balance Sheets

     

     

     

     

     

     

     

    March 31, 2025

     

    December 31, 2024

     

    March 31, 2024

    ASSETS

     

     

     

     

     

    Cash and Due from Banks

    $

    79,113

     

     

    $

    69,249

     

     

    $

    52,839

     

    Short-term Investments

     

    363,678

     

     

     

    120,043

     

     

     

    71,131

     

    Investment Securities

     

    1,563,037

     

     

     

    1,517,640

     

     

     

    1,539,623

     

     

     

     

     

     

     

    Loans Held-for-Sale

     

    6,713

     

     

     

    8,239

     

     

     

    10,325

     

     

     

     

     

     

     

    Loans, Net of Unearned Income

     

    5,646,526

     

     

     

    4,124,902

     

     

     

    3,971,910

     

    Allowance for Credit Losses

     

    (75,158

    )

     

     

    (44,436

    )

     

     

    (43,754

    )

    Net Loans

     

    5,571,368

     

     

     

    4,080,466

     

     

     

    3,928,156

     

     

     

     

     

     

     

    Stock in FHLB and Other Restricted Stock

     

    18,105

     

     

     

    14,423

     

     

     

    14,630

     

    Premises and Equipment

     

    141,387

     

     

     

    104,045

     

     

     

    106,030

     

    Goodwill and Other Intangible Assets

     

    418,463

     

     

     

    183,043

     

     

     

    186,022

     

    Other Assets

     

    257,829

     

     

     

    198,762

     

     

     

    203,173

     

    TOTAL ASSETS

    $

    8,419,693

     

     

    $

    6,295,910

     

     

    $

    6,111,929

     

     

     

     

     

     

     

    LIABILITIES

     

     

     

     

     

    Non-interest-bearing Demand Deposits

    $

    1,889,673

     

     

    $

    1,399,270

     

     

    $

    1,463,933

     

    Interest-bearing Demand, Savings, and Money Market Accounts

     

    3,788,889

     

     

     

    3,013,204

     

     

     

    2,918,459

     

    Time Deposits

     

    1,419,323

     

     

     

    916,601

     

     

     

    836,955

     

    Total Deposits

     

    7,097,885

     

     

     

    5,329,075

     

     

     

    5,219,347

     

     

     

     

     

     

     

    Borrowings

     

    216,542

     

     

     

    210,131

     

     

     

    191,810

     

    Other Liabilities

     

    59,224

     

     

     

    41,637

     

     

     

    45,518

     

    TOTAL LIABILITIES

     

    7,373,651

     

     

     

    5,580,843

     

     

     

    5,456,675

     

     

     

     

     

     

     

    SHAREHOLDERS' EQUITY

     

     

     

     

     

    Common Stock and Surplus

     

    742,431

     

     

     

    421,943

     

     

     

    419,520

     

    Retained Earnings

     

    513,292

     

     

     

    513,588

     

     

     

    472,689

     

    Accumulated Other Comprehensive Income (Loss)

     

    (209,681

    )

     

     

    (220,464

    )

     

     

    (236,955

    )

    SHAREHOLDERS' EQUITY

     

    1,046,042

     

     

     

    715,067

     

     

     

    655,254

     

     

     

     

     

     

     

    TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

    $

    8,419,693

     

     

    $

    6,295,910

     

     

    $

    6,111,929

     

     

     

     

     

     

     

    END OF PERIOD SHARES OUTSTANDING

     

    37,481,716

     

     

     

    29,677,093

     

     

     

    29,669,019

     

     

     

     

     

     

     

    TANGIBLE BOOK VALUE PER SHARE (1)

    $

    16.74

     

     

    $

    17.93

     

     

    $

    15.82

     

     

     

     

     

     

     

     

    (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

     

     

    March 31, 2025

     

    December 31, 2024

     

    March 31, 2024

    INTEREST INCOME

     

     

     

     

     

    Interest and Fees on Loans

    $

    81,505

     

    $

    62,045

     

    $

    57,826

    Interest on Short-term Investments

     

    2,216

     

     

    2,792

     

     

    299

    Interest and Dividends on Investment Securities

     

    12,495

     

     

    11,718

     

     

    10,133

    TOTAL INTEREST INCOME

     

    96,216

     

     

    76,555

     

     

    68,258

     

     

     

     

     

     

     

    INTEREST EXPENSE

     

     

     

     

     

    Interest on Deposits

     

    27,028

     

     

    22,873

     

     

    20,989

    Interest on Borrowings

     

    2,616

     

     

    2,650

     

     

    2,275

    TOTAL INTEREST EXPENSE

     

    29,644

     

     

    25,523

     

     

    23,264

     

     

     

     

     

     

     

    NET INTEREST INCOME

     

    66,572

     

     

    51,032

     

     

    44,994

    Provision for Credit Losses

     

    15,300

     

     

    625

     

     

    900

    NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

     

    51,272

     

     

    50,407

     

     

    44,094

     

     

     

     

     

     

     

    NON-INTEREST INCOME

     

     

     

     

     

    Net Gains on Sales of Loans

     

    832

     

     

    630

     

     

    751

    Net Gains (Losses) on Securities

     

    —

     

     

    —

     

     

    35

    Other Non-interest Income

     

    14,008

     

     

    13,484

     

     

    15,036

    TOTAL NON-INTEREST INCOME

     

    14,840

     

     

    14,114

     

     

    15,822

     

     

     

     

     

     

     

    NON-INTEREST EXPENSE

     

     

     

     

     

    Salaries and Benefits

     

    28,040

     

     

    20,404

     

     

    21,178

    Other Non-interest Expenses

     

    24,742

     

     

    15,435

     

     

    15,560

    TOTAL NON-INTEREST EXPENSE

     

    52,782

     

     

    35,839

     

     

    36,738

     

     

     

     

     

     

     

    Income before Income Taxes

     

    13,330

     

     

    28,682

     

     

    23,178

    Income Tax Expense

     

    2,813

     

     

    5,471

     

     

    4,156

     

     

     

     

     

     

     

    NET INCOME

    $

    10,517

     

    $

    23,211

     

    $

    19,022

     

     

     

     

     

     

     

    BASIC EARNINGS PER SHARE

    $

    0.30

     

    $

    0.78

     

    $

    0.64

    DILUTED EARNINGS PER SHARE

    $

    0.30

     

    $

    0.78

     

    $

    0.64

     

     

     

     

     

     

     

    WEIGHTED AVERAGE SHARES OUTSTANDING

     

    34,680,719

     

     

    29,678,443

     

     

    29,599,491

    DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING

     

    34,680,719

     

     

    29,678,443

     

     

    29,599,491

    GERMAN AMERICAN BANCORP, INC.

    (unaudited, dollars in thousands except per share data)

     

     

     

     

     

     

     

     

     

    Three Months Ended

     

     

    March 31, 2025

     

    December 31, 2024

     

    March 31, 2024

    EARNINGS PERFORMANCE RATIOS

     

     

     

     

     

     

    Annualized Return on Average Assets

     

     

    0.55

    %

     

     

    1.45

    %

     

     

    1.25

    %

    Annualized Return on Average Equity

     

     

    4.52

    %

     

     

    12.67

    %

     

     

    11.58

    %

    Annualized Return on Average Tangible Equity (1)

     

     

    7.10

    %

     

     

    16.90

    %

     

     

    16.17

    %

    Net Interest Margin

     

     

    3.96

    %

     

     

    3.54

    %

     

     

    3.35

    %

    Efficiency Ratio (2)

     

     

    61.30

    %

     

     

    53.38

    %

     

     

    57.92

    %

    Net Overhead Expense to Average Earning Assets (3)

     

     

    2.19

    %

     

     

    1.48

    %

     

     

    1.50

    %

     

     

     

     

     

     

     

    ASSET QUALITY RATIOS

     

     

     

     

     

     

    Annualized Net Charge-offs to Average Loans

     

     

    0.04

    %

     

     

    0.03

    %

     

     

    0.09

    %

    Allowance for Credit Losses to Period End Loans

     

     

    1.33

    %

     

     

    1.08

    %

     

     

    1.10

    %

    Non-performing Assets to Period End Assets

     

     

    0.22

    %

     

     

    0.18

    %

     

     

    0.16

    %

    Non-performing Loans to Period End Loans

     

     

    0.33

    %

     

     

    0.27

    %

     

     

    0.25

    %

    Loans 30-89 Days Past Due to Period End Loans

     

     

    0.36

    %

     

     

    0.33

    %

     

     

    0.29

    %

     

     

     

     

     

     

     

    SELECTED BALANCE SHEET & OTHER FINANCIAL DATA

     

     

     

     

     

     

    Average Assets

     

    $

    7,628,810

     

     

    $

    6,384,219

     

     

    $

    6,102,370

     

    Average Earning Assets

     

    $

    6,922,503

     

     

    $

    5,878,988

     

     

    $

    5,590,835

     

    Average Total Loans

     

    $

    5,135,859

     

     

    $

    4,094,333

     

     

    $

    3,972,232

     

    Average Demand Deposits

     

    $

    1,669,722

     

     

    $

    1,422,400

     

     

    $

    1,426,239

     

    Average Interest Bearing Liabilities

     

    $

    4,976,746

     

     

    $

    4,184,785

     

     

    $

    3,973,079

     

    Average Equity

     

    $

    931,386

     

     

    $

    732,698

     

     

    $

    656,781

     

     

     

     

     

     

     

     

    Period End Non-performing Assets (4)

     

    $

    18,620

     

     

    $

    11,122

     

     

    $

    9,983

     

    Period End Non-performing Loans (5)

     

    $

    18,572

     

     

    $

    11,122

     

     

    $

    9,983

     

    Period End Loans 30-89 Days Past Due (6)

     

    $

    20,093

     

     

    $

    13,727

     

     

    $

    11,485

     

     

     

     

     

     

     

     

    Tax-Equivalent Net Interest Income

     

    $

    67,891

     

     

    $

    52,204

     

     

    $

    46,639

     

    Net Charge-offs during Period

     

    $

    486

     

     

    $

    313

     

     

    $

    911

     

    (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.

    USE OF NON-GAAP FINANCIAL MEASURES

    The accounting and reporting policies of German American Bancorp, Inc. (the "Company") conform to U.S. generally accepted accounting principles ("GAAP") and general practices within the banking industry. As a supplement to GAAP, the Company has provided certain, non-GAAP financial measures, which it believes are useful because they assist investors in assessing the Company's operating performance. Specifically, the Company has presented its net income, earnings per share, provision for credit losses, non-interest expense, non-interest income, efficiency ratio, and net interest margin on an as adjusted basis for the periods set forth below to reflect the exclusion of the following items: (1) the Current Expected Credit Losses ("CECL") "Day 2" provision expense for acquired loans that have only insignificant credit deterioration (i.e., non-PCD loans) related to the Heartland merger; (2) non-recurring expenses related to the Heartland merger; and (3) the operating results for German American Insurance, Inc. ("GAI"), whose assets were sold effective June 1, 2024. Management believes excluding such items from these financial measures may be useful in assessing the Company's underlying operational performance since the applicable transactions do not pertain to its core business operations and exclusion may facilitate better comparability between periods. In addition, management believes that by excluding such items the measures are useful to the Company, as well as analysts and investors, in assessing operating performance. Management also believes excluding these items may enhance comparability for peer comparison purposes.

    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 21%.

    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

    (Dollars in Thousands, except per share amounts)

     

    03/31/2025

     

    12/31/2024

     

    03/31/2024

    Net Income, as reported

     

    $

    10,517

     

    $

    23,211

     

    $

    19,022

    Adjustments:

     

     

     

     

     

     

    Less: Income from GAI operations

     

     

    —

     

     

    —

     

     

    676

    Plus: CECL Day 1 non-PCD provision

     

     

    12,150

     

     

    —

     

     

    —

    Plus: Non-recurring merger-related expenses

     

     

    4,620

     

     

    154

     

     

    —

    Adjusted Net Income

     

    $

    27,287

     

    $

    23,365

     

    $

    18,346

     

     

     

     

     

     

     

    Weighted Average Shares Outstanding

     

     

    34,680,719

     

     

    29,678,443

     

     

    29,599,491

     

     

     

     

     

     

     

    Earnings Per Share, as reported

     

    $

    0.30

     

    $

    0.78

     

    $

    0.64

    Earnings Per Share, as adjusted

     

    $

    0.79

     

    $

    0.79

     

    $

    0.62

    Non-GAAP Reconciliation – Non-Interest Income and Non-Interest Expense

    (Dollars in Thousands)

     

    03/31/2025

     

    12/31/2024

     

    03/31/2024

     

     

     

     

     

     

     

    Non-Interest Income

     

    $

    14,840

     

    $

    14,114

     

    $

    15,822

    Less: Revenue from GAI operations

     

     

    —

     

     

    —

     

     

    2,924

    Adjusted Non-Interest Income

     

    $

    14,840

     

    $

    14,114

     

    $

    12,898

     

     

     

     

     

     

     

    Non-Interest Expense

     

    $

    52,782

     

    $

    35,839

     

    $

    36,738

    Less: Non-recurring merger-related expenses

     

     

    5,932

     

     

    198

     

     

    —

    Less: Expense from GAI Operations

     

     

    —

     

     

    —

     

     

    2,025

    Adjusted Non-Interest Expense

     

    $

    46,850

     

    $

    35,641

     

    $

    34,713

    Non-GAAP Reconciliation – Efficiency Ratio

    (Dollars in Thousands)

     

    03/31/2025

     

    12/31/2024

     

    03/31/2024

    Non-Interest Expense

     

    $

    52,782

     

     

    $

    35,839

     

     

    $

    36,738

     

    Less: Intangible Amortization

     

     

    2,070

     

     

     

    438

     

     

     

    578

     

    Non-Interest Expense excluding Intangible Amortization

     

     

    50,712

     

     

     

    35,401

     

     

     

    36,160

     

    Adjustments:

     

     

     

     

     

     

    Less: Non-recurring merger-related expenses

     

     

    5,932

     

     

     

    198

     

     

     

    —

     

    Less: Expense for GAI Operations

     

     

    —

     

     

     

    —

     

     

     

    2,025

     

    Adjusted Non-Interest Expense

     

    $

    44,780

     

     

    $

    35,203

     

     

    $

    34,135

     

     

     

     

     

     

     

     

    Net Interest Income

     

    $

    66,572

     

     

    $

    51,032

     

     

    $

    44,994

     

    Add: FTE Adjustment

     

     

    1,319

     

     

     

    1,172

     

     

     

    1,645

     

    Net Interest Income (FTE)

     

     

    67,891

     

     

     

    52,204

     

     

     

    46,639

     

     

     

     

     

     

     

     

    Non-Interest Income

     

     

    14,840

     

     

     

    14,114

     

     

     

    15,822

     

    Less: Security Gains/(Losses)

     

     

    —

     

     

     

    —

     

     

     

    35

     

    Adjusted Non-Interest Interest

     

     

    14,840

     

     

     

    14,114

     

     

     

    15,787

     

     

     

     

     

     

     

     

    Total Revenue (FTE)

     

     

    82,731

     

     

     

    66,318

     

     

     

    62,461

     

    Less: Revenue from GAI operations

     

     

    —

     

     

     

    —

     

     

     

    2,924

     

    Adjusted Total Revenue

     

    $

    82,731

     

     

    $

    66,318

     

     

    $

    59,537

     

     

     

     

     

     

     

     

    Efficiency Ratio

     

     

    61.30

    %

     

     

    53.38

    %

     

     

    57.92

    %

    Adjusted Efficiency Ratio

     

     

    54.13

    %

     

     

    53.08

    %

     

     

    57.33

    %

    Non-GAAP Reconciliation – Net Interest Margin

    (Dollars in Thousands)

     

    03/31/2025

     

    12/31/2024

     

    03/31/2024

    Net Interest Income (FTE) from above

     

    $

    67,891

     

     

    $

    52,204

     

     

    $

    46,639

     

    Less: Accretion of Discount on Acquired Loans

     

    $

    4,192

     

     

    $

    617

     

     

    $

    360

     

    Adjusted Net Interest Income (FTE)

     

    $

    63,699

     

     

    $

    51,587

     

     

    $

    46,279

     

    Average Earning Assets

     

    $

    6,922,503

     

     

    $

    5,878,988

     

     

    $

    5,590,835

     

    Net Interest Margin (FTE)

     

     

    3.96

    %

     

     

    3.54

    %

     

     

    3.35

    %

    Adjusted Net Interest Margin (FTE)

     

     

    3.72

    %

     

     

    3.50

    %

     

     

    3.32

    %

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20250428326943/en/

    D. Neil Dauby, Chairman and Chief Executive Officer

    Bradley M Rust, President and Chief Financial Officer

    (812) 482-1314

    Get the next $GABC alert in real time by email

    Chat with this insight

    Save time and jump to the most important pieces.

    Recent Analyst Ratings for
    $GABC

    DatePrice TargetRatingAnalyst
    10/30/2024$41.00 → $48.00Market Perform → Outperform
    Hovde Group
    10/15/2024$45.00Overweight
    Stephens
    5/31/2024$33.00 → $34.00Market Perform
    Hovde Group
    1/5/2024$38.00Mkt Perform → Outperform
    Raymond James
    5/25/2023$31.00Neutral
    Piper Sandler
    More analyst ratings

    $GABC
    Press Releases

    Fastest customizable press release news feed in the world

    See more
    • German American Bancorp, Inc. (GABC) Reports First Quarter 2025 Earnings; Closes on Heartland Merger

      German American Bancorp, Inc. (NASDAQ:GABC) reported first quarter earnings of $10.5 million, or $0.30 per share. The first quarter earnings included the results of Heartland BancCorp ("Heartland"), the parent company of Heartland Bank, which was acquired by German American on February 1, 2025. The first quarter of 2025 included one-time merger and acquisition costs of $5.9 million and "Day 2" provision under the current expected credit loss ("CECL") model for Heartland of $16.2 million (total impact of $16.8 million on an after-tax basis). As a result, quarterly earnings declined by approximately $12.7 million, or 62% on a per share basis, from 2024 fourth quarter earnings of $23.2 million

      4/28/25 4:30:00 PM ET
      $GABC
      Major Banks
      Finance
    • German American Bank Ranked Second in the Nation on Forbes America's Best Banks 2025 List

      German American Bank has been ranked second in the nation on the Forbes America's Best Banks 2025 list and is the highest ranked bank serving Indiana, Kentucky and Ohio. Each year, Forbes evaluates the 200 largest publicly traded banks and thrifts by asset size (German American Bank was 142nd in size) and then ranks the top 100 financial performers. "We are incredibly proud to be ranked the #2 bank in the country on this prestigious Forbes list," said Neil Dauby, Chairman and CEO of German American Bank. "This recognition is a testament to our entire German American team of professionals who are passionate, dedicated and work hard every day to support each other, our customers, our communi

      2/19/25 2:11:00 PM ET
      $GABC
      Major Banks
      Finance
    • German American Announces Completion of Merger With Heartland BancCorp and Heartland Bank

      German American Bancorp, Inc. (NASDAQ:GABC) announced today that it has completed its merger with Heartland BancCorp, the parent company of Heartland Bank, effective at 12:01 a.m. (Eastern time) on February 1, 2025. Immediately following completion of the holding company transaction, Heartland Bank merged with and into German American's banking subsidiary, German American Bank. Each Heartland shareholder of record at closing (other than the Heartland 401(k) Plan) is entitled to receive 3.90 shares of German American common stock (the "Exchange Ratio") for each of their shares of Heartland common stock, subject to their surrender of the old Heartland shares to the exchange agent designated

      2/3/25 8:52:00 AM ET
      $GABC
      Major Banks
      Finance

    $GABC
    Leadership Updates

    Live Leadership Updates

    See more
    • KBRA Comments on German American Bancorp, Inc.'s Proposed Acquisition of Heartland BancCorp

      Jasper, Indiana-based, German American BancCorp, Inc. (NASDAQ:GABC, or ", German American", ))) (KBRA senior unsecured debt rating: BBB+ / Stable Outlook) announced on July 29 that it had entered into a merger agreement to acquire Heartland BancCorp (OTCQX:HLAN, Heartland', ))), based in Whitehall, Ohio. The transaction, valued at $330.2 million (P/TBV: 2.02x), is an all-stock deal consideration and expected to close in 1Q25 pending regulatory approval. Upon completion of the transaction, Heartland's subsidiary bank, Heartland Bank, will be merged into German American's subsidiary bank, German American Bank, and operate under a co-branded name within the Ohio markets. G. Scott McComb, Chair

      7/31/24 2:18:00 PM ET
      $GABC
      Major Banks
      Finance
    • German American Bancorp, Inc. and Heartland BancCorp Announce Definitive Merger Agreement

      JASPER, Ind. and WHITEHALL, Ohio, July 29, 2024 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (NASDAQ:GABC) ("German American") and Heartland BancCorp (OTCQX:HLAN) ("Heartland") jointly announced today that they have entered into a definitive agreement to merge Heartland into German American. Upon completion of the transaction, Heartland's subsidiary bank, Heartland Bank, will be merged into German American's subsidiary bank, German American Bank, and operate under a co-branded name within the Ohio markets. Under the terms of the definitive agreement, Heartland shareholders, other than the Heartland retirement plan, will receive 3.90 shares of German American common stock for each s

      7/29/24 4:45:00 PM ET
      $GABC
      Major Banks
      Finance
    • German American Bancorp, Inc. (GABC) Appoints Angela Curry to Corporate Board of Directors

      JASPER, Ind., Dec. 19, 2022 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (NASDAQ:GABC) announced today the appointment of Angela Curry, General Counsel and Vice President for Legal Affairs at the University of Louisville, to its corporate board of directors effective as of January 1, 2023. As General Counsel, Curry serves as the University's chief legal officer. She directs and manages the provision of all legal services to the University of Louisville while supporting and advancing the overall mission and Cardinal Principles. In addition to her role as General Counsel and Vice President for Legal Affairs, in 2021 Curry was also appointed to serve as Interim Chief of Staff for Univer

      12/19/22 4:00:00 PM ET
      $GABC
      Major Banks
      Finance

    $GABC
    Financials

    Live finance-specific insights

    See more
    • German American Bancorp, Inc. (GABC) Reports First Quarter 2025 Earnings; Closes on Heartland Merger

      German American Bancorp, Inc. (NASDAQ:GABC) reported first quarter earnings of $10.5 million, or $0.30 per share. The first quarter earnings included the results of Heartland BancCorp ("Heartland"), the parent company of Heartland Bank, which was acquired by German American on February 1, 2025. The first quarter of 2025 included one-time merger and acquisition costs of $5.9 million and "Day 2" provision under the current expected credit loss ("CECL") model for Heartland of $16.2 million (total impact of $16.8 million on an after-tax basis). As a result, quarterly earnings declined by approximately $12.7 million, or 62% on a per share basis, from 2024 fourth quarter earnings of $23.2 million

      4/28/25 4:30:00 PM ET
      $GABC
      Major Banks
      Finance
    • German American Announces Completion of Merger With Heartland BancCorp and Heartland Bank

      German American Bancorp, Inc. (NASDAQ:GABC) announced today that it has completed its merger with Heartland BancCorp, the parent company of Heartland Bank, effective at 12:01 a.m. (Eastern time) on February 1, 2025. Immediately following completion of the holding company transaction, Heartland Bank merged with and into German American's banking subsidiary, German American Bank. Each Heartland shareholder of record at closing (other than the Heartland 401(k) Plan) is entitled to receive 3.90 shares of German American common stock (the "Exchange Ratio") for each of their shares of Heartland common stock, subject to their surrender of the old Heartland shares to the exchange agent designated

      2/3/25 8:52:00 AM ET
      $GABC
      Major Banks
      Finance
    • German American Bancorp, Inc. (GABC) Posts Strong 4th Quarter and Annual 2024 Earnings; Declares 7.4% Cash Dividend Increase

      German American Bancorp, Inc. (NASDAQ:GABC) reported strong fourth quarter 2024 earnings of $23.2 million, or $0.78 per share, reflecting a linked quarter increase of $2.2 million, or approximately 10% on a per share basis, from 2024 third quarter earnings of $21.0 million, or $0.71 per share. The Company also reported strong annual earnings of $83.8 million, or $2.83 per share, for the year ended December 31, 2024. This level of reported annual earnings resulted in a 12.2% return on average shareholders' equity, marking the 20th consecutive fiscal year in which the Company has delivered a double-digit return on shareholders' equity. The Company also announced a 7.4% increase to its quarter

      1/27/25 5:10:00 PM ET
      $GABC
      Major Banks
      Finance

    $GABC
    SEC Filings

    See more
    • SEC Form 13F-HR filed by German American Bancorp Inc.

      13F-HR - GERMAN AMERICAN BANCORP, INC. (0000714395) (Filer)

      5/13/25 2:47:44 PM ET
      $GABC
      Major Banks
      Finance
    • SEC Form 10-Q filed by German American Bancorp Inc.

      10-Q - GERMAN AMERICAN BANCORP, INC. (0000714395) (Filer)

      5/12/25 4:49:47 PM ET
      $GABC
      Major Banks
      Finance
    • German American Bancorp Inc. filed SEC Form 8-K: Submission of Matters to a Vote of Security Holders

      8-K - GERMAN AMERICAN BANCORP, INC. (0000714395) (Filer)

      4/29/25 12:09:52 PM ET
      $GABC
      Major Banks
      Finance

    $GABC
    Analyst Ratings

    Analyst ratings in real time. Analyst ratings have a very high impact on the underlying stock. See them live in this feed.

    See more

    $GABC
    Insider Purchases

    Insider purchases reveal critical bullish sentiment about the company from key stakeholders. See them live in this feed.

    See more
    • German American Bancorp upgraded by Hovde Group with a new price target

      Hovde Group upgraded German American Bancorp from Market Perform to Outperform and set a new price target of $48.00 from $41.00 previously

      10/30/24 6:35:47 AM ET
      $GABC
      Major Banks
      Finance
    • Stephens initiated coverage on German American Bancorp with a new price target

      Stephens initiated coverage of German American Bancorp with a rating of Overweight and set a new price target of $45.00

      10/15/24 7:40:52 AM ET
      $GABC
      Major Banks
      Finance
    • Hovde Group reiterated coverage on German American Bancorp with a new price target

      Hovde Group reiterated coverage of German American Bancorp with a rating of Market Perform and set a new price target of $34.00 from $33.00 previously

      5/31/24 8:02:54 AM ET
      $GABC
      Major Banks
      Finance
    • Director Bawel Zachary W bought $850 worth of shares (21 units at $39.70), increasing direct ownership by 0.10% to 20,826 units (SEC Form 4)

      4 - GERMAN AMERICAN BANCORP, INC. (0000714395) (Issuer)

      5/16/25 10:28:20 AM ET
      $GABC
      Major Banks
      Finance
    • Director Ellspermann Susan J bought $850 worth of shares (21 units at $39.70), increasing direct ownership by 0.24% to 8,824 units (SEC Form 4)

      4 - GERMAN AMERICAN BANCORP, INC. (0000714395) (Issuer)

      5/16/25 10:27:20 AM ET
      $GABC
      Major Banks
      Finance
    • Director Sheidler Jack bought $1,800 worth of shares (45 units at $39.70), increasing direct ownership by 0.07% to 64,005 units (SEC Form 4)

      4 - GERMAN AMERICAN BANCORP, INC. (0000714395) (Issuer)

      5/16/25 10:25:11 AM ET
      $GABC
      Major Banks
      Finance

    $GABC
    Insider Trading

    Insider transactions reveal critical sentiment about the company from key stakeholders. See them live in this feed.

    See more
    • Director Kelly Jason M sold $99,454 worth of shares (2,515 units at $39.55), decreasing direct ownership by 18% to 11,673 units (SEC Form 4)

      4 - GERMAN AMERICAN BANCORP, INC. (0000714395) (Issuer)

      5/21/25 1:29:27 PM ET
      $GABC
      Major Banks
      Finance
    • Director Bawel Zachary W bought $850 worth of shares (21 units at $39.70), increasing direct ownership by 0.10% to 20,826 units (SEC Form 4)

      4 - GERMAN AMERICAN BANCORP, INC. (0000714395) (Issuer)

      5/16/25 10:28:20 AM ET
      $GABC
      Major Banks
      Finance
    • Director Ellspermann Susan J bought $850 worth of shares (21 units at $39.70), increasing direct ownership by 0.24% to 8,824 units (SEC Form 4)

      4 - GERMAN AMERICAN BANCORP, INC. (0000714395) (Issuer)

      5/16/25 10:27:20 AM ET
      $GABC
      Major Banks
      Finance

    $GABC
    Large Ownership Changes

    This live feed shows all institutional transactions in real time.

    See more
    • SEC Form SC 13G filed by German American Bancorp Inc.

      SC 13G - GERMAN AMERICAN BANCORP, INC. (0000714395) (Subject)

      2/13/24 5:06:16 PM ET
      $GABC
      Major Banks
      Finance
    • SEC Form SC 13G/A filed by German American Bancorp Inc. (Amendment)

      SC 13G/A - GERMAN AMERICAN BANCORP, INC. (0000714395) (Subject)

      2/13/24 3:27:22 PM ET
      $GABC
      Major Banks
      Finance
    • SEC Form SC 13G/A filed by German American Bancorp Inc. (Amendment)

      SC 13G/A - GERMAN AMERICAN BANCORP, INC. (0000714395) (Subject)

      2/13/23 1:34:51 PM ET
      $GABC
      Major Banks
      Finance