German American Bancorp, Inc. (GABC) Reports First Quarter 2024 Earnings

Rhea-AI Summary

German American Bancorp, Inc. reported first quarter 2024 earnings of $19.0 million, with $0.64 per share, showing a decline from the previous quarters. Despite strong loan growth and credit metrics, lower net interest income impacted earnings due to higher deposit costs. The Company declared a quarterly cash dividend of $0.27 per share, reflecting an 8% increase over 2023 rates. Total assets slightly declined compared to the prior quarter but increased compared to the same period last year. The company's capital levels remain solid, meeting well-capitalized standards.

Positive

• None.

Negative

• Net interest income declined due to a decrease in the net interest margin caused by higher funding costs, impacting earnings negatively.

Insights

Financial Analyst

German American Bancorp Inc.'s first quarter 2024 earnings report showed a decline in net income and earnings per share compared to both the previous quarter and the same period in the prior year. Such a decline can be indicative of challenges in generating revenue or controlling costs, which are critical metrics for assessing a company's financial health and performance. The reported net interest margin compression caused by higher deposit costs reflects a higher interest rate environment and is a vital consideration for evaluating the bank's ability to manage interest income versus interest expenses. The bank's solid credit metrics and growth in commercial real estate and retail loans suggest a potentially robust credit environment and a proactive approach to diversifying its loan portfolio. This diversification is paramount in mitigating risks associated with any single sector. Investors should closely monitor how the bank manages its interest rate spread, especially in a fluctuating rate environment and how this affects profitability going forward.

Market Research Analyst

The bank's strategic focus on digital platform investments and talent acquisition implies a forward-looking approach to banking, concentrating on technological advancements and customer experience. Such investments are geared towards long-term growth and could help German American Bancorp Inc. stay competitive in a market where digital banking services are increasingly important. However, these kinds of investments typically require upfront costs and may not translate into immediate financial gains. For investors, the balance between short-term earnings pressure and the potential for long-term value creation should be a key area of evaluation. Additionally, the bank's wealth management and insurance revenue streams are contributing positively, indicating that diversification of non-interest income sources can help balance the interest income volatility and provide a more stable revenue base.

JASPER, Ind., April 29, 2024 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (Nasdaq: GABC) reported first quarter 2024 earnings of $19.0 million, or $0.64 per share, compared to earnings of $21.5 million, or $0.73 per share, for fourth quarter 2023, and earnings of $20.8 million, or $0.71 per share, for first quarter 2023.

First quarter 2024 operating performance was highlighted by strong linked quarter commercial real estate and retail organic loan growth, linked quarter non-public fund deposit growth, strong credit metrics, controlled operating expenses, and a solid level of diversified non-interest income. However, from an earnings perspective, these increases were more than offset by lower net interest income as a result of modest net interest margin compression driven by higher deposit costs.

The net interest margin declined from 3.43% to 3.35%, or 8 basis points, during the first quarter of 2024 on a linked quarter basis as the funding cost increase of 12 basis points outpaced the earning asset yield increase of 4 basis points. The rise in the cost of funds in the first quarter of 2024 was driven by the continued competitive deposit pricing in the marketplace, and the ongoing re-mixing of the Company’s deposit composition as customers continued to move into time deposit accounts seeking higher yields.

First quarter 2024 deposits declined approximately $33.6 million, or 3%, on an annualized linked quarter basis compared to year-end 2023 driven by a delayed seasonal outflow of public fund deposits into first quarter 2024. Non-public funds however continued to grow positively on a linked quarter basis. The overall core deposit base remains diverse with stable and manageable exposure to uninsured and uncollateralized deposits of approximately 21% and non-interest bearing demand accounts remaining stable at 28% of total deposits

During the first quarter of 2024 loans remained stable and diversified with commercial real estate and retail organic loan growth helping to offset the larger seasonal reductions in utilization of agricultural lines of credit and ongoing reduced utilization in commercial and industrial lines. Credit quality remained strong as non-performing assets were 0.16% of period end assets and non-performing loans totaled 0.25% of period end loans.

Non-interest income for the first quarter 2024 was driven by an increase in wealth management fees attributable to the ongoing growth and gathering of assets under management. Insurance revenues also contributed in a meaningful way driven by seasonal contingency income as well as improved commercial lines revenue. Linked quarter interchange fee income was lower as fourth quarter 2023 usage was seasonally up from the holidays and first quarter 2024 usage was seasonally down due to tax refunds.

The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.27 per share, which will be payable on May 20, 2024 to shareholders of record as of May 10, 2024. As previously reported, this dividend rate represents an 8% increase over the rate in effect during 2023.

D. Neil Dauby, German American’s Chairman & CEO stated, “Our Company delivered solid first quarter results to kick off the 2024 year while maintaining strong capital levels and a solid liquidity position. During the quarter, we continued to add key talent to our team in both customer facing and operational areas. We continued to invest in new digital platforms/systems to improve customer experience, drive customer acquisition/retention and drive future revenues. Our talented team of “relationship driven, value added” professionals, innovative technology and continuous improvement mindset will position us well for continued growth across our footprint.”

Balance Sheet Highlights

Total assets for the Company totaled $6.112 billion at March 31, 2024, representing a decline of $40.3 million compared with December 31, 2023 and an increase of $115.0 million compared with March 31, 2023. The modest decline in total assets at March 31, 2024 compared with year-end 2023 was largely related to a decline in the securities portfolio while the increase in total assets at March 31, 2024 compared to March 31, 2023 was largely attributable to an increase in total loans, partially offset by a decline in the securities portfolio.

Securities available for sale declined $57.6 million as of March 31, 2024 compared with December 31, 2023 and declined $131.0 million compared with March 31, 2023. The decline at March 31, 2024 in the available for sale securities portfolio compared with year-end 2023 and the end of the first quarter of 2023 was primarily the result of the Company's utilization of cash flows from the securities portfolio to fund loan growth and other balance sheet funding needs. Current projections indicate approximately $190.0 million in principal and interest cash flows from the portfolio over the next twelve months with rates unchanged.

Total loans remained relatively stable at March 31, 2024 compared with year-end 2023, increasing by $1.0 million, while total loans increased $206.1 million, or 6%, compared with March 31, 2023. The modest increase during the first quarter of 2024 compared with year-end 2023 was largely attributable to increased commercial real estate loans and retail loans, partially offset by lower seasonal line utilization for agricultural loans and lower line utilization for commercial and industrial loans. Commercial real estate loans increased $27.0 million, or 5% on an annualized basis, while retail loans grew $12.5 million, or 6% on an annualized basis. Partially offsetting these increases was a decline in agricultural loans of $23.1 million, or 22% on an annualized basis, and a decline in commercial and industrial loans of $15.4 million, or 9% on an annualized basis, as line of credit utilization declined in both of these segments.

The composition of the loan portfolio has remained relatively stable and diversified over the past several years, including 2024. The portfolio is most heavily concentrated in commercial real estate loans at 54% of the portfolio, followed by commercial and industrial loans at 16% of the portfolio, and agricultural loans at 10% 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. The Company's commercial real estate portfolio has limited exposure to office real estate, with office exposure totaling approximately 4% of the total loan portfolio.

End of Period Loan Balances	3/31/2024				12/31/2023				3/31/2023
(dollars in thousands)
Commercial & Industrial Loans	$	646,162			$	661,529			$	667,306
Commercial Real Estate Loans		2,148,808				2,121,835				2,000,237
Agricultural Loans		400,733				423,803				378,587
Consumer Loans		421,980				407,889				376,398
Residential Mortgage Loans		361,236				362,844				350,338
	$	3,978,919			$	3,977,900			$	3,772,866

The Company’s allowance for credit losses totaled $43.8 million at both March 31, 2024 and December 31, 2023 and totaled $44.3 million at March 31, 2023. The allowance for credit losses represented 1.10% of period-end loans at both March 31, 2024 and December 31, 2023 and represented 1.18% of period-end loans at March 31, 2023.

Non-performing assets totaled $10.0 million at March 31, 2024, $9.2 million at December 31, 2023 and $14.6 million at March 31, 2023. Non-performing assets represented 0.16% of total assets at March 31, 2024, 0.15% at December 31, 2023 and 0.24% at March 31, 2023. Non-performing loans represented 0.25% of total loans at March 31, 2024, 0.23% at December 31, 2023 and 0.39% at March 31, 2023.

Non-performing Assets
(dollars in thousands)
	3/31/2024				12/31/2023				3/31/2023
Non-Accrual Loans	$	9,898			$	9,136			$	13,495
Past Due Loans (90 days or more)		85				55				1,098
Total Non-Performing Loans		9,983				9,191				14,593
Other Real Estate		—				—				—
Total Non-Performing Assets	$	9,983			$	9,191			$	14,593

March 31, 2024 total deposits declined $33.6 million, or 3% on an annualized basis, compared to year-end 2023 and increased $64.5 million, or 1%, compared with March 31, 2023. The decline at March 31, 2024 compared to year-end 2023 was largely attributable to seasonal outflows of public entity funds. The Company has continued to see customer movement from both interest bearing and non-interest bearing transactional accounts to time deposits due primarily to a higher interest rate environment. Non-interest bearing deposits have remained relatively stable as a percent of total deposits with both March 31, 2024 and December 31, 2023 non-interest deposits totaling 28% of total deposits compared with 31% at March 31, 2023.

End of Period Deposit Balances	3/31/2024				12/31/2023				3/31/2023
(dollars in thousands)
Non-interest-bearing Demand Deposits	$	1,463,933			$	1,493,160			$	1,601,206
IB Demand, Savings, and MMDA Accounts		2,918,459				2,992,761				3,039,393
Time Deposits < $100,000		328,804				289,077				245,104
Time Deposits > $100,000		508,151				477,965				269,192
	$	5,219,347			$	5,252,963			$	5,154,895

At March 31, 2024, 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.

	3/31/2024 Ratio				12/31/2023 Ratio				3/31/2023 Ratio
Total Capital (to Risk Weighted Assets)
Consolidated	16.57		%		16.50		%		15.89		%
Bank	14.53		%		14.76		%		14.37		%
Tier 1 (Core) Capital (to Risk Weighted Assets)
Consolidated	14.97		%		14.97		%		14.32		%
Bank	13.73		%		14.04		%		13.63		%
Common Tier 1 (CET 1) Capital Ratio (to Risk Weighted Assets)
Consolidated	14.27		%		14.26		%		13.60		%
Bank	13.73		%		14.04		%		13.63		%
Tier 1 Capital (to Average Assets)
Consolidated	12.01		%		11.75		%		11.08		%
Bank	11.02		%		11.03		%		10.55		%

Results of Operations Highlights – Quarter ended March 31, 2024

Net income for the quarter ended March 31, 2024 totaled $19,022,000, or $0.64 per share, a decline of 12% on a per share basis, compared with the fourth quarter 2023 net income of $21,507,000, or $0.73 per share, and a decline of 10% on a per share basis compared with the first quarter 2023 net income of $20,807,000, or $0.71 per share.

Summary Average Balance Sheet
(Tax-equivalent basis / dollars in thousands)
	Quarter Ended												Quarter Ended												Quarter Ended
	March 31, 2024												December 31, 2023												March 31, 2023
	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	$	22,903			$	299			5.25		%		$	36,927			$	473			5.09		%		$	46,729			$	345			2.99		%
Securities		1,595,700				11,537			2.89		%			1,527,306				11,903			3.12		%			1,729,189				12,595			2.91		%
Loans and Leases		3,972,232				58,067			5.88		%			3,921,967				56,257			5.69		%			3,773,789				49,245			5.29		%
Total Interest Earning Assets	$	5,590,835			$	69,903			5.02		%		$	5,486,200			$	68,633			4.98		%		$	5,549,707			$	62,185			4.53		%
Liabilities
Demand Deposit Accounts	$	1,426,239											$	1,507,780											$	1,636,133
IB Demand, Savings, and
MMDA Accounts	$	2,969,755			$	12,823			1.74		%		$	3,010,984			$	12,433			1.64		%		$	3,119,979			$	7,414			0.96		%
Time Deposits		806,976				8,166			4.07		%			709,534				6,577			3.68		%			451,644				1,557			1.40		%
FHLB Advances and Other Borrowings		196,348				2,275			4.66		%			202,555				2,394			4.69		%			244,645				2,509			4.16		%
Total Interest-Bearing Liabilities	$	3,973,079			$	23,264			2.36		%		$	3,923,073			$	21,404			2.16		%		$	3,816,268			$	11,480			1.22		%
Cost of Funds									1.67		%										1.55		%										0.84		%
Net Interest Income					$	46,639											$	47,229											$	50,705
Net Interest Margin									3.35		%										3.43		%										3.69		%

During the first quarter of 2024, net interest income, on a non tax-equivalent basis, totaled $44,994,000, a decline of $613,000, or 1%, compared to the fourth quarter of 2023 net interest income of $45,607,000 and a decline of $4,015,000, or 8%, compared to the first quarter of 2023 net interest income of $49,009,000.

The decline in net interest income during the first quarter of 2024 compared with both the fourth quarter of 2023 and the first quarter of 2023 was primarily attributable to a decline in the Company's net interest margin. The tax equivalent net interest margin for the quarter ended March 31, 2024 was 3.35% compared with 3.43% in the fourth quarter of 2023 and 3.69% in the first quarter of 2023. The decline in the net interest margin during the first quarter of 2024 compared with both the fourth quarter of 2023 and the first quarter of 2023 was largely driven by an increase in the cost of funds. The cost of funds continued to accelerate higher in the first quarter of 2024 due to highly competitive deposit pricing in the marketplace, customers actively looking for yield opportunities within and outside the banking industry and a continued shift in the Company's deposit composition to a higher level of time deposits.

The Company's net interest margin and net interest income have been impacted by accretion of loan discounts on acquired loans. Accretion of discounts on acquired loans totaled $360,000 during the first quarter of 2024, $280,000 during the fourth quarter of 2023 and $530,000 during the first quarter of 2023. Accretion of loan discounts on acquired loans contributed approximately 3 basis points to the net interest margin in the first quarter of 2024, 2 basis points in the fourth quarter of 2023 and 4 basis points in the first quarter of 2023.

During the quarter ended March 31, 2024, the Company recorded a provision for credit losses of $900,000 compared with no provision in the fourth quarter of 2023 and a provision for credit losses of $1,100,000 during the first quarter of 2023. The lack of a provision in the fourth quarter of 2023 was largely related to the resolution, during the fourth quarter of 2023, of a single commercial borrowing relationship with minimal loss recognition for which the Company had established a significant reserve in previous periods.

Net charge-offs totaled $911,000, or 9 basis points on an annualized basis, of average loans outstanding during the first quarter of 2024 compared with $881,000, or 9 basis points on an annualized basis, of average loans during the fourth quarter of 2023 and compared with $953,000, or 10 basis points, of average loans during the first quarter of 2023.

During the quarter ended March 31, 2024, non-interest income totaled $15,822,000, an increase of $228,000 or 1%, compared with the fourth quarter of 2023 and an increase of $855,000, or 6%, compared with the first quarter of 2023.

	Quarter Ended				Quarter Ended				Quarter Ended
Non-interest Income	3/31/2024				12/31/2023				3/31/2023
(dollars in thousands)
Wealth Management Fees	$	3,366			$	3,198			$	2,644
Service Charges on Deposit Accounts		2,902				2,885				2,788
Insurance Revenues		2,878				2,266				3,135
Company Owned Life Insurance		441				455				401
Interchange Fee Income		4,087				4,371				4,199
Other Operating Income		1,362				1,887				1,211
Subtotal		15,036				15,062				14,378
Net Gains on Sales of Loans		751				532				587
Net Gains on Securities		35				—				2
Total Non-interest Income	$	15,822			$	15,594			$	14,967

Wealth management fees increased $168,000, or 5%, during the first quarter of 2024 compared with the fourth quarter of 2023 and increased $722,000, or 27%, compared with the first quarter of 2023. The increase during the first quarter of 2024 was largely attributable to increased assets under management within the Company's wealth management group as compared with both the fourth quarter of 2023 and first quarter of 2023.

Insurance revenues increased $612,000, or 27%, during the quarter ended March 31, 2024, compared with the fourth quarter of 2023 and declined $257,000, or 8%, compared with the first quarter of 2023. The increase during the first quarter of 2024 compared with the fourth quarter of 2023 primarily related to contingency revenue and to an increase in commercial lines insurance revenues. The decline during the first quarter of 2024 compared with the first quarter of 2023 was related to a decline in contingency revenue, partially mitigated by increased commercial lines revenue. Contingency revenue during the first quarter of 2024 totaled $391,000 compared with no contingency revenue during the fourth quarter of 2023 and $945,000 during the first quarter of 2023. Contingency revenue is reflective of claims and loss experience with insurance carriers that the Company represents through its property and casualty insurance agency. Typically, the majority of contingency revenue is recognized during the first quarter of the year.

Interchange fee income declined $284,000, or 7%, during the quarter ended March 31, 2024 compared with the fourth quarter of 2023 and declined $112,000, or 3%, compared with the first quarter of 2023. The decline in the first quarter of 2024 compared with the fourth quarter of 2023 was largely related to a seasonally lower level of customer transaction volume.

Other operating income declined $525,000, or 28%, during the first quarter of 2024 compared with the fourth quarter of 2023 and increased $151,000, or 12%, compared with the first quarter of 2023. The decline during the first quarter of 2024 compared to the fourth quarter of 2023 was largely attributable to the gain on sale of real estate related to the consolidation of various branch office facilities during the fourth quarter of 2023, partially mitigated by improved fees and fair value adjustments associated with interest rate swap transactions with loan customers. The increase during the first quarter of 2024 compared with the same period of the prior year was related to a higher level of fees associated with interest rate swap transactions with loan customers.

Net gains on sales of loans increased $219,000, or 41%, during the first quarter of 2024 compared with the fourth quarter of 2023 and increased $164,000, or 28%, compared with the first quarter of 2023. The increase during the first quarter of 2024 compared with both the fourth quarter of 2023 and the first quarter of 2023 was largely related to improved pricing levels on loans sold and fair value adjustments on commitments to sell loans. Loan sales totaled $24.0 million during the first quarter of 2024 compared with $27.0 million during the fourth quarter of 2023 and $23.4 million during the first quarter of 2023.

During the quarter ended March 31, 2024, non-interest expense totaled $36,738,000, an increase of $1,004,000, or 3%, compared with the fourth quarter of 2023, and a decline of $878,000, or 2%, compared with the first quarter of 2023.

	Quarter Ended				Quarter Ended				Quarter Ended
Non-interest Expense	3/31/2024				12/31/2023				3/31/2023
(dollars in thousands)
Salaries and Employee Benefits	$	21,178			$	20,948			$	21,846
Occupancy, Furniture and Equipment Expense		3,804				3,513				3,820
FDIC Premiums		729				701				741
Data Processing Fees		2,811				2,835				2,755
Professional Fees		1,595				1,170				1,562
Advertising and Promotion		1,138				1,151				1,167
Intangible Amortization		578				636				785
Other Operating Expenses		4,905				4,780				4,940
Total Non-interest Expense	$	36,738			$	35,734			$	37,616

Salaries and benefits increased $230,000, or 1%, during the quarter ended March 31, 2024 compared with the fourth quarter of 2023 and declined $668,000, or 3%, compared with the first quarter of 2023. The decline in salaries and benefits during the first quarter of 2024 compared with the first quarter of 2023 was primarily due to a lower level of full-time equivalent employees and lower incentive compensation.

Occupancy, furniture and equipment expense increased $291,000, or 8%, during the first quarter of 2024 compared with the fourth quarter of 2023 and declined $16,000, or less than 1%, compared to the first quarter of 2023. The increase during the first quarter of 2024 compared with the fourth quarter of 2023 was largely due to seasonal maintenance activities.

Professional fees increased $425,000, or 36%, in the first quarter of 2024 compared with the fourth quarter of 2023 and increased $33,000, or 2%, compared with the first quarter of 2023. The increase during the first quarter of 2024 compared with the fourth quarter of 2023 was largely attributable to the costs associated with services related to the Company's year-end financial reporting processes and annual meeting preparations, and costs associated with certain talent recruiting engagements.

About German American

German American Bancorp, Inc. is a Nasdaq-traded (symbol: GABC) financial holding company based in Jasper, Indiana. German American, through its banking subsidiary German American Bank, operates 74 banking offices in 20 contiguous southern Indiana counties and 14 counties in Kentucky. The Company also owns an investment brokerage subsidiary (German American Investment Services, Inc.) and a full line property and casualty insurance agency (German American Insurance, 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. 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, such as 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; and
	w.	other risk factors expressly identified in German American’s filings 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, 2024				December 31, 2023				March 31, 2023
ASSETS
Cash and Due from Banks	$	52,839			$	78,805			$	70,506
Short-term Investments		71,131				37,025				10,289
Investment Securities		1,539,623				1,597,185				1,670,609
Loans Held-for-Sale		10,325				5,226				6,011
Loans, Net of Unearned Income		3,971,910				3,971,082				3,768,872
Allowance for Credit Losses		(43,754	)			(43,765	)			(44,315	)
Net Loans		3,928,156				3,927,317				3,724,557
Stock in FHLB and Other Restricted Stock		14,630				14,687				14,957
Premises and Equipment		106,030				106,776				112,225
Goodwill and Other Intangible Assets		186,022				186,664				188,929
Other Assets		203,173				198,513				198,836
TOTAL ASSETS	$	6,111,929			$	6,152,198			$	5,996,919
LIABILITIES
Non-interest-bearing Demand Deposits	$	1,463,933			$	1,493,160			$	1,601,206
Interest-bearing Demand, Savings, and Money Market Accounts		2,918,459				2,992,761				3,039,393
Time Deposits		836,955				767,042				514,296
Total Deposits		5,219,347				5,252,963				5,154,895
Borrowings		191,810				193,937				191,052
Other Liabilities		45,518				41,740				45,641
TOTAL LIABILITIES		5,456,675				5,488,640				5,391,588
SHAREHOLDERS' EQUITY
Common Stock and Surplus		419,520				418,996				417,203
Retained Earnings		472,689				461,622				418,620
Accumulated Other Comprehensive Income (Loss)		(236,955	)			(217,060	)			(230,492	)
SHAREHOLDERS' EQUITY		655,254				663,558				605,331
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	6,111,929			$	6,152,198			$	5,996,919
END OF PERIOD SHARES OUTSTANDING		29,669,019				29,584,709				29,573,439
TANGIBLE BOOK VALUE PER SHARE (1)	$	15.82			$	16.12			$	14.08
(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, 2024				December 31, 2023				March 31, 2023
INTEREST INCOME
Interest and Fees on Loans	$	57,826			$	56,058			$	49,061
Interest on Short-term Investments		299				473				345
Interest and Dividends on Investment Securities		10,133				10,480				11,083
TOTAL INTEREST INCOME		68,258				67,011				60,489
INTEREST EXPENSE
Interest on Deposits		20,989				19,010				8,971
Interest on Borrowings		2,275				2,394				2,509
TOTAL INTEREST EXPENSE		23,264				21,404				11,480
NET INTEREST INCOME		44,994				45,607				49,009
Provision for Credit Losses		900				—				1,100
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES		44,094				45,607				47,909
NON-INTEREST INCOME
Net Gain on Sales of Loans		751				532				587
Net Gain on Securities		35				—				2
Other Non-interest Income		15,036				15,062				14,378
TOTAL NON-INTEREST INCOME		15,822				15,594				14,967
NON-INTEREST EXPENSE
Salaries and Benefits		21,178				20,948				21,846
Other Non-interest Expenses		15,560				14,786				15,770
TOTAL NON-INTEREST EXPENSE		36,738				35,734				37,616
Income before Income Taxes		23,178				25,467				25,260
Income Tax Expense		4,156				3,960				4,453
NET INCOME	$	19,022			$	21,507			$	20,807
BASIC EARNINGS PER SHARE	$	0.64			$	0.73			$	0.71
DILUTED EARNINGS PER SHARE	$	0.64			$	0.73			$	0.71
WEIGHTED AVERAGE SHARES OUTSTANDING		29,599,491				29,575,398				29,507,446
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		29,599,491				29,575,398				29,507,446

GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
			Three Months Ended
			March 31, 2024					December 31, 2023					March 31, 2023
EARNINGS PERFORMANCE RATIOS
		Annualized Return on Average Assets		1.25		%			1.43		%			1.37		%
		Annualized Return on Average Equity		11.58		%			15.45		%			14.39		%
		Annualized Return on Average Tangible Equity (1)		16.17		%			23.26		%			21.38		%
		Net Interest Margin		3.35		%			3.43		%			3.69		%
		Efficiency Ratio (2)		57.92		%			55.87		%			56.08		%
		Net Overhead Expense to Average Earning Assets (3)		1.50		%			1.47		%			1.63		%
ASSET QUALITY RATIOS
		Annualized Net Charge-offs to Average Loans		0.09		%			0.09		%			0.10		%
		Allowance for Credit Losses to Period End Loans		1.10		%			1.10		%			1.18		%
		Non-performing Assets to Period End Assets		0.16		%			0.15		%			0.24		%
		Non-performing Loans to Period End Loans		0.25		%			0.23		%			0.39		%
		Loans 30-89 Days Past Due to Period End Loans		0.29		%			0.33		%			0.27		%
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA
		Average Assets	$	6,102,370				$	6,036,242				$	6,078,126
		Average Earning Assets	$	5,590,835				$	5,486,200				$	5,549,707
		Average Total Loans	$	3,972,232				$	3,921,967				$	3,773,789
		Average Demand Deposits	$	1,426,239				$	1,507,780				$	1,636,133
		Average Interest Bearing Liabilities	$	3,973,079				$	3,923,073				$	3,816,268
		Average Equity	$	656,781				$	556,914				$	578,562
		Period End Non-performing Assets (4)	$	9,983				$	9,191				$	14,593
		Period End Non-performing Loans (5)	$	9,983				$	9,191				$	14,593
		Period End Loans 30-89 Days Past Due (6)	$	11,485				$	13,208				$	10,360
		Tax Equivalent Net Interest Income	$	46,639				$	47,229				$	50,705
		Net Charge-offs during Period	$	911				$	881				$	953

(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 Gain 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.

For additional information, contact:
D. Neil Dauby,  Chairman and Chief Executive Officer
Bradley M Rust,  President and Chief Financial Officer
(812) 482-1314

FAQ

What were German American Bancorp, Inc.'s first quarter 2024 earnings per share?

German American Bancorp, Inc. reported first quarter 2024 earnings of $19.0 million, with $0.64 per share.

Did German American Bancorp, Inc. declare a dividend for the first quarter of 2024?

Yes, the Company declared a regular quarterly cash dividend of $0.27 per share.

How did German American Bancorp, Inc.'s total assets perform in the first quarter of 2024?

Total assets saw a slight decline from the prior quarter but increased compared to the same period last year.

Where is German American Bancorp, Inc. based?

German American Bancorp, Inc. is based in Jasper, Indiana.

What is the stock symbol of German American Bancorp, Inc.?

The stock symbol of German American Bancorp, Inc. is GABC.