German American Bancorp, Inc. (GABC) Reports Solid Third Quarter 2024 Earnings
German American Bancorp reported solid Q3 2024 earnings of $21.0 million, or $0.71 per share, showing a 3% increase from Q2's $20.5 million ($0.69 per share). The quarter was marked by an expanding net interest margin of 3.47%, stable loan growth of 2.5% annualized, and strong credit metrics. Total assets reached $6.260 billion, with total loans increasing to $4.069 billion. The company maintained strong capital ratios and announced a quarterly cash dividend of $0.27 per share. Notable developments include the pending merger with Heartland BancCorp and a securities portfolio restructuring transaction completed early in Q3.
German American Bancorp ha riportato utili solidi per il terzo trimestre del 2024 pari a 21,0 milioni di dollari, ovvero 0,71 dollari per azione, con un incremento del 3% rispetto ai 20,5 milioni di dollari del secondo trimestre (0,69 dollari per azione). Il trimestre è stato caratterizzato da un margine di interesse netto in espansione del 3,47%, una crescita stabile dei prestiti del 2,5% annualizzata e forti indicatori di credito. Gli attivi totali hanno raggiunto 6,260 miliardi di dollari, con un aumento dei prestiti totali a 4,069 miliardi di dollari. L'azienda ha mantenuto solidi rapporti di capitale e ha annunciato un dividendo in contanti trimestrale di 0,27 dollari per azione. Sviluppi significativi includono la fusione in attesa con Heartland BancCorp e una transazione di ristrutturazione del portafoglio titoli completata all'inizio del terzo trimestre.
German American Bancorp informó sobre ganancias sólidas para el tercer trimestre de 2024 de $21.0 millones, o $0.71 por acción, lo que representa un aumento del 3% respecto a los $20.5 millones del segundo trimestre ($0.69 por acción). El trimestre estuvo marcado por un margen de interés neto en expansión del 3.47%, un crecimiento estable de los préstamos del 2.5% anualizado y sólidos indicadores de crédito. Los activos totales alcanzaron $6.260 mil millones, con un aumento total de préstamos a $4.069 mil millones. La empresa mantuvo fuertes ratios de capital y anunció un dividendo en efectivo trimestral de $0.27 por acción. Desarrollos notables incluyen la fusión pendiente con Heartland BancCorp y una transacción de reestructuración de cartera de valores completada a principios del tercer trimestre.
German American Bancorp는 2024년 3분기에 2억 1천만 달러(주당 0.71달러)의 견실한 순이익을 보고했으며, 이는 2분기의 2억 0.5천만 달러(주당 0.69달러) 대비 3% 증가한 수치입니다. 이번 분기는 3.47%의 확대된 순이자 마진, 2.5%의 안정적인 대출 성장률, 강력한 신용 지표로 특징지어졌습니다. 총 자산은 62억 6천만 달러에 도달했으며, 총 대출은 40억 6천9백만 달러로 증가했습니다. 회사는 강력한 자본 비율을 유지하고 있으며, 주당 0.27달러의 분기별 현금 배당금을 발표했습니다. 주목할 만한 발전으로는 Heartland BancCorp와의 합병이 대기 중이며, 3분기 초에 완료된 유가증권 포트폴리오 재구성 거래가 있습니다.
German American Bancorp a annoncé des résultats solides pour le troisième trimestre 2024, avec un bénéfice de 21,0 millions de dollars, soit 0,71 dollar par action, montrant une augmentation de 3% par rapport aux 20,5 millions de dollars du deuxième trimestre (0,69 dollar par action). Le trimestre a été marqué par une marge d'intérêt nette en expansion de 3,47%, une croissance stable des prêts de 2,5% annualisée et des indicateurs de crédit solides. Les actifs totaux ont atteint 6,260 milliards de dollars, avec des prêts totaux augmentant à 4,069 milliards de dollars. L'entreprise a maintenu de solides ratios de capital et a annoncé un dividende en espèces trimestriel de 0,27 dollar par action. Parmi les développements notables figure la fusion en attente avec Heartland BancCorp et une opération de restructuration de portefeuille de titres réalisée au début du troisième trimestre.
German American Bancorp berichtete über starke Ergebnisse im 3. Quartal 2024 mit einem Gewinn von 21 Millionen USD oder 0,71 USD pro Aktie, was einem Anstieg von 3% im Vergleich zu 20,5 Millionen USD (0,69 USD pro Aktie) im 2. Quartal entspricht. Das Quartal war geprägt von einer zunehmenden Nettozinsspanne von 3,47%, einem stabilen Darwachstum von annualisierten 2,5% und starken Kreditkennzahlen. Die Gesamtaktiva beliefen sich auf 6,260 Milliarden USD, während die Gesamtverbindlichkeiten auf 4,069 Milliarden USD anstiegen. Das Unternehmen hielt starke Eigenkapitalquoten aufrecht und kündigte eine vierteljährliche Bardividende von 0,27 USD pro Aktie an. Bedeutende Entwicklungen umfassen die bevorstehende Fusion mit Heartland BancCorp und eine Ende des 3. Quartals abgeschlossene Transaktion zur Umstrukturierung des Wertpapierportfolios.
- Q3 earnings increased 3% to $0.71 per share from Q2's $0.69
- Net interest margin expanded to 3.47% from 3.34% in Q2
- Loan portfolio grew 2.5% annualized in Q3
- Strong credit metrics with non-performing assets at only 0.15% of total assets
- Total assets increased to $6.260 billion
- Total deposits decreased $42.3 million (3% annualized) in Q3
- Non-interest income declined 27% compared to Q2 2024
- Non-performing assets increased to $9.7 million from $7.3 million in Q2
Insights
A solid quarter with notable improvements in key metrics. Net income of
The loan portfolio shows healthy diversification with controlled exposure to office real estate (
Capital ratios remain robust, with Total Capital Ratio at
Third quarter 2024 operating performance was highlighted by an expanding net interest margin, stable loan growth, continued strong credit metrics and controlled non-interest expense. The Company remained well-positioned at the end of third quarter 2024 with continued solid liquidity and strong capital ratios.
Net interest income for the third quarter of 2024 increased
Third quarter 2024 total deposits decreased approximately
During the third quarter of 2024, total loans increased
The Company also announced that its Board of Directors declared a regular quarterly cash dividend of
D. Neil Dauby, German American’s Chairman & CEO stated, “We are extremely pleased to deliver yet another solid quarter of operating performance as German American positions itself for continued future growth. We are extremely excited about the long-term growth potential in connection with a normalizing yield curve, and the Company’s pending merger with Heartland BancCorp."
Dauby continued, "Heartland is a premier community bank primarily operating within the high growth markets of
Dauby concluded, "We are excited to continue expanding our unique style and brand of community banking throughout the Ohio Valley region. 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 risk management and growth will continue to drive future shareholder value. We remain excited and committed to the vitality and growth of our
Balance Sheet Highlights
Total assets for the Company totaled
Securities available-for-sale increased
During June 2024, the Company commenced a securities portfolio restructuring transaction whereby available-for-sale securities totaling approximately
September 30, 2024 total loans increased
The composition of the loan portfolio has remained relatively stable and diversified over the past several years, including 2024. The portfolio is most heavily weighted in commercial real estate loans at
End of Period Loan Balances |
|
9/30/2024 |
|
6/30/2024 |
|
9/30/2023 |
|||
(dollars in thousands) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Commercial & Industrial Loans |
|
$ |
670,104 |
|
$ |
664,435 |
|
$ |
665,892 |
Commercial Real Estate Loans |
|
|
2,179,981 |
|
|
2,172,447 |
|
|
2,076,962 |
Agricultural Loans |
|
|
417,473 |
|
|
413,742 |
|
|
398,109 |
Consumer Loans |
|
|
439,382 |
|
|
424,647 |
|
|
396,000 |
Residential Mortgage Loans |
|
|
362,415 |
|
|
368,997 |
|
|
356,610 |
|
|
$ |
4,069,355 |
|
$ |
4,044,268 |
|
$ |
3,893,573 |
The Company’s allowance for credit losses totaled
Non-performing assets totaled
Non-performing Assets |
|
|
|
|
|
||||
(dollars in thousands) |
|
|
|
|
|
||||
|
9/30/2024 |
|
6/30/2024 |
|
9/30/2023 |
||||
Non-Accrual Loans |
$ |
9,701 |
|
$ |
6,583 |
|
$ |
11,206 |
|
Past Due Loans (90 days or more) |
|
— |
|
|
706 |
|
|
1,170 |
|
Total Non-Performing Loans |
|
9,701 |
|
|
7,289 |
|
|
12,376 |
|
Other Real Estate |
|
— |
|
|
33 |
|
|
24 |
|
Total Non-Performing Assets |
$ |
9,701 |
|
$ |
7,322 |
|
$ |
12,400 |
|
|
|
|
|
|
|
||||
September 30, 2024 total deposits declined
End of Period Deposit Balances |
|
9/30/2024 |
|
6/30/2024 |
|
9/30/2023 |
|||
(dollars in thousands) |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|||
Non-interest-bearing Demand Deposits |
|
$ |
1,406,405 |
|
$ |
1,448,467 |
|
$ |
1,502,175 |
IB Demand, Savings, and MMDA Accounts |
|
|
2,955,306 |
|
|
2,984,571 |
|
|
2,932,180 |
Time Deposits < |
|
|
349,824 |
|
|
348,025 |
|
|
269,829 |
Time Deposits > |
|
|
559,744 |
|
|
532,494 |
|
|
431,687 |
|
|
$ |
5,271,279 |
|
$ |
5,313,557 |
|
$ |
5,135,871 |
At September 30, 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.
|
|
9/30/2024
|
|
6/30/2024
|
|
9/30/2023
|
|||
Total Capital (to Risk Weighted Assets) |
|
|
|
|
|
|
|||
Consolidated |
|
17.22 |
% |
|
16.78 |
% |
|
16.21 |
% |
Bank |
|
15.28 |
% |
|
14.52 |
% |
|
14.83 |
% |
Tier 1 (Core) Capital (to Risk Weighted Assets) |
|
|
|
|
|
|
|||
Consolidated |
|
15.76 |
% |
|
15.19 |
% |
|
14.66 |
% |
Bank |
|
14.46 |
% |
|
13.72 |
% |
|
14.10 |
% |
Common Tier 1 (CET 1) Capital Ratio (to Risk Weighted Assets) |
|
|
|
|
|
|
|||
Consolidated |
|
15.04 |
% |
|
14.49 |
% |
|
13.95 |
% |
Bank |
|
14.46 |
% |
|
13.72 |
% |
|
14.10 |
% |
Tier 1 Capital (to Average Assets) |
|
|
|
|
|
|
|||
Consolidated |
|
12.30 |
% |
|
11.92 |
% |
|
11.70 |
% |
Bank |
|
11.29 |
% |
|
10.78 |
% |
|
11.26 |
% |
Results of Operations Highlights – Quarter ended September 30, 2024
Net income for the third quarter of 2024 totaled
Net income for the second quarter of 2024 was impacted by the Company's sale of the assets of its wholly-owned subsidiary German American Insurance, Inc. (“GAI”). The all-cash transaction sale price totaled
Summary Average Balance Sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
(Tax-equivalent basis / dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|||||||||||||||||||||
|
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Principal
|
|
Income/
|
|
Yield/
|
|
Principal
|
|
Income/
|
|
Yield/
|
|
Principal
|
|
Income/
|
|
Yield/
|
|||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Federal Funds Sold and Other Short-term Investments |
|
$ |
164,154 |
|
$ |
2,223 |
|
5.39 |
% |
|
$ |
180,595 |
|
$ |
2,383 |
|
5.31 |
% |
|
$ |
20,243 |
|
$ |
199 |
|
3.91 |
% |
Securities |
|
|
1,490,807 |
|
|
12,157 |
|
3.26 |
% |
|
|
1,505,807 |
|
|
11,224 |
|
2.98 |
% |
|
|
1,596,653 |
|
|
11,677 |
|
2.93 |
% |
Loans and Leases |
|
|
4,052,673 |
|
|
61,424 |
|
6.03 |
% |
|
|
4,022,612 |
|
|
59,496 |
|
5.95 |
% |
|
|
3,855,586 |
|
|
55,343 |
|
5.70 |
% |
Total Interest Earning Assets |
|
$ |
5,707,634 |
|
$ |
75,804 |
|
5.29 |
% |
|
$ |
5,709,014 |
|
$ |
73,103 |
|
5.14 |
% |
|
$ |
5,472,482 |
|
$ |
67,219 |
|
4.88 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Demand Deposit Accounts |
|
$ |
1,411,377 |
|
|
|
|
|
$ |
1,421,710 |
|
|
|
|
|
$ |
1,524,682 |
|
|
|
|
||||||
IB Demand, Savings, and MMDA Accounts |
|
$ |
2,970,716 |
|
$ |
13,836 |
|
1.85 |
% |
|
$ |
3,049,511 |
|
$ |
14,006 |
|
1.85 |
% |
|
$ |
2,973,909 |
|
$ |
10,601 |
|
1.41 |
% |
Time Deposits |
|
|
888,639 |
|
|
9,539 |
|
4.27 |
% |
|
|
881,880 |
|
|
9,379 |
|
4.28 |
% |
|
|
640,992 |
|
|
4,977 |
|
3.08 |
% |
FHLB Advances and Other Borrowings |
|
|
191,548 |
|
|
2,684 |
|
5.57 |
% |
|
|
182,960 |
|
|
2,221 |
|
4.88 |
% |
|
|
219,371 |
|
|
2,505 |
|
4.53 |
% |
Total Interest-Bearing Liabilities |
|
$ |
4,050,903 |
|
$ |
26,059 |
|
2.56 |
% |
|
$ |
4,114,351 |
|
$ |
25,606 |
|
2.50 |
% |
|
$ |
3,834,272 |
|
$ |
18,083 |
|
1.87 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Cost of Funds |
|
|
|
|
|
1.82 |
% |
|
|
|
|
|
1.80 |
% |
|
|
|
|
|
1.31 |
% |
||||||
Net Interest Income |
|
|
|
$ |
49,745 |
|
|
|
|
|
$ |
47,497 |
|
|
|
|
|
$ |
49,136 |
|
|
||||||
Net Interest Margin |
|
|
|
|
|
3.47 |
% |
|
|
|
|
|
3.34 |
% |
|
|
|
|
|
3.57 |
% |
||||||
During the third quarter of 2024, net interest income, on a non tax-equivalent basis, totaled
The increase in net interest income during the third quarter of 2024 compared with the second quarter of 2024 was primarily driven by an improved net interest margin. The improvement in net interest income during the third quarter of 2024 compared with the third quarter of 2023 was primarily attributable to a higher level of earning assets, most notably an increased loan portfolio, partially offset by a lower net interest margin.
The tax-equivalent net interest margin for the quarter ended September 30, 2024 was
The decline in the net interest margin in the third quarter of 2024 compared with the same period of 2023 was largely driven by the increased cost of funds, which as previously mentioned stabilized in the third quarter of 2024, and a lower level of accretion of loan discounts on acquired loans. The cost of funds has continued to move higher over the past year due to 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
During both the second and third quarters of 2024 the Company recorded a provision for credit losses of
During the quarter ended September 30, 2024, non-interest income totaled
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
||||
Non-interest Income |
|
9/30/2024 |
|
6/30/2024 |
|
9/30/2023 |
||||
(dollars in thousands) |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Wealth Management Fees |
|
$ |
3,580 |
|
$ |
3,783 |
|
|
$ |
2,957 |
Service Charges on Deposit Accounts |
|
|
3,330 |
|
|
3,093 |
|
|
|
2,982 |
Insurance Revenues |
|
|
— |
|
|
1,506 |
|
|
|
2,065 |
Company Owned Life Insurance |
|
|
476 |
|
|
525 |
|
|
|
446 |
Interchange Fee Income |
|
|
4,390 |
|
|
4,404 |
|
|
|
4,470 |
Sale of Assets of German American Insurance |
|
|
— |
|
|
38,323 |
|
|
|
— |
Other Operating Income |
|
|
1,251 |
|
|
1,213 |
|
|
|
1,270 |
Subtotal |
|
|
13,027 |
|
|
52,847 |
|
|
|
14,190 |
Net Gains on Sales of Loans |
|
|
704 |
|
|
969 |
|
|
|
614 |
Net Gains (Losses) on Securities |
|
|
70 |
|
|
(34,893 |
) |
|
|
— |
Total Non-interest Income |
|
$ |
13,801 |
|
$ |
18,923 |
|
|
$ |
14,804 |
Wealth management fees declined
Service charges on deposit accounts increased
Insurance revenues declined
Net gains on sales of loans declined
During the quarter ended September 30, 2024, non-interest expense totaled
Non-interest expenses were impacted during both the second and third quarters of 2024 by the pending merger transaction with Heartland BancCorp (“Heartland”). Merger-related transaction costs totaled approximately
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
||||
Non-interest Expense |
|
9/30/2024 |
|
6/30/2024 |
|
9/30/2023 |
||||
(dollars in thousands) |
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
||||
Salaries and Employee Benefits |
|
$ |
19,718 |
|
$ |
20,957 |
|
$ |
20,347 |
|
Occupancy, Furniture and Equipment Expense |
|
|
3,880 |
|
|
3,487 |
|
|
3,691 |
|
FDIC Premiums |
|
|
755 |
|
|
710 |
|
|
700 |
|
Data Processing Fees |
|
|
3,156 |
|
|
3,019 |
|
|
2,719 |
|
Professional Fees |
|
|
1,912 |
|
|
3,462 |
|
|
1,229 |
|
Advertising and Promotion |
|
|
941 |
|
|
909 |
|
|
1,278 |
|
Intangible Amortization |
|
|
484 |
|
|
532 |
|
|
685 |
|
Other Operating Expenses |
|
|
5,280 |
|
|
4,598 |
|
|
4,772 |
|
Total Non-interest Expense |
|
$ |
36,126 |
|
$ |
37,674 |
|
$ |
35,421 |
|
Salaries and benefits declined
Occupancy, furniture and equipment expense increased
Data processing fees increased
Professional fees declined
Other operating expense increased
About German American
German American Bancorp, Inc. is a Nasdaq-listed (symbol: GABC) financial holding company based in
Additional Information About the Merger and Where to Find It
The proposed merger of Heartland BancCorp (“Heartland”) with and into German American Bancorp, Inc. (“German American”) will be submitted to both the German American and Heartland shareholders for their consideration. In connection with the proposed merger, on September 6, 2024, German American filed a Registration Statement on Form S-4 (SEC File No. 333-261869) with the
Communications in this press release do not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any proxy vote or approval. You may obtain a copy of the joint proxy statement/prospectus, as well as other filings containing information about German American, without charge, at the SEC’s website (http://www.sec.gov) or by accessing German American’s website (http://www.germanamerican.com) under the tab “Investor Relations” and then under the heading “Financial Information”. Copies of the joint proxy statement/prospectus and the filings with the SEC that will be incorporated by reference in the joint proxy statement/prospectus can also be obtained, without charge, by directing a request to Bradley C. Arnett, Investor Relations, German American Bancorp, Inc., 711 Main Street, Box 810,
German American and Heartland and certain of their directors and executive officers may be deemed to be participants in the solicitation of proxies from the shareholders of German American and Heartland in connection with the proposed merger. Information about the directors and executive officers of German American is set forth in the proxy statement for German American’s 2024 annual meeting of shareholders, as filed with the SEC on Schedule 14A on March 21, 2024, which information has been updated by German American from time to time in subsequent filings with the SEC. Information about the directors and executive officers of Heartland is set forth in the joint proxy statement/prospectus relating to the proposed merger. Additional information about the interests of those participants and other persons who may be deemed participants in the transaction may also be obtained by reading the joint proxy statement/prospectus relating to the proposed merger. Free copies of this document may be obtained as described above.
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.
These forward-looking statements include, but are not limited to, statements relating to German American’s goals, intentions and expectations; statements regarding German American’s business plan and growth strategies; statements regarding the asset quality of German American’s loan and investment portfolios; and the expected timing and benefits of the Merger, including future financial and operating results, cost savings, enhanced revenues, and accretion/dilution to reported earnings that may be realized from the Merger; and estimates of German American’s risks and future costs and benefits, whether with respect to the Merger or otherwise.
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;
w. with respect to the Merger: (i) failure to obtain necessary regulatory approvals when expected or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the transaction), or the failure of either company to satisfy any of the other closing conditions to the transaction on a timely basis or at all; (ii) the occurrence of any event, change or other circumstances that could give rise to the right of one or both of the parties to terminate the merger agreement; and (iii) the possibility that the anticipated benefits of the transaction, including anticipated cost savings and strategic gains, are not realized when expected or at all, including as a result of the impact of, or problems arising from, the integration of the two companies, unexpected credit quality problems of the acquired loans or other assets, or unexpected attrition of the customer base of the acquired institution or branches, or as a result of the strength of the economy, competitive factors in the areas where German American and Heartland do business, or as a result of other unexpected factors or events; 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, 2023, 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 |
|||||||||||
|
|
|
|
|
|
||||||
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
||||||
ASSETS |
|
|
|
|
|
||||||
Cash and Due from Banks |
$ |
77,652 |
|
|
$ |
70,418 |
|
|
$ |
72,063 |
|
Short-term Investments |
|
118,403 |
|
|
|
259,401 |
|
|
|
60,856 |
|
Investment Securities |
|
1,548,347 |
|
|
|
1,374,165 |
|
|
|
1,477,309 |
|
|
|
|
|
|
|
||||||
Loans Held-for-Sale |
|
9,173 |
|
|
|
15,419 |
|
|
|
7,085 |
|
|
|
|
|
|
|
||||||
Loans, Net of Unearned Income |
|
4,061,149 |
|
|
|
4,037,127 |
|
|
|
3,887,550 |
|
Allowance for Credit Losses |
|
(44,124 |
) |
|
|
(43,946 |
) |
|
|
(44,646 |
) |
Net Loans |
|
4,017,025 |
|
|
|
3,993,181 |
|
|
|
3,842,904 |
|
|
|
|
|
|
|
||||||
Stock in FHLB and Other Restricted Stock |
|
14,488 |
|
|
|
14,530 |
|
|
|
14,763 |
|
Premises and Equipment |
|
105,419 |
|
|
|
105,651 |
|
|
|
111,252 |
|
Goodwill and Other Intangible Assets |
|
183,548 |
|
|
|
184,095 |
|
|
|
187,373 |
|
Other Assets |
|
186,852 |
|
|
|
200,063 |
|
|
|
232,061 |
|
TOTAL ASSETS |
$ |
6,260,907 |
|
|
$ |
6,216,923 |
|
|
$ |
6,005,666 |
|
|
|
|
|
|
|
||||||
LIABILITIES |
|
|
|
|
|
||||||
Non-interest-bearing Demand Deposits |
$ |
1,406,405 |
|
|
$ |
1,448,467 |
|
|
$ |
1,502,175 |
|
Interest-bearing Demand, Savings, and Money Market Accounts |
|
2,955,306 |
|
|
|
2,984,571 |
|
|
|
2,932,180 |
|
Time Deposits |
|
909,568 |
|
|
|
880,519 |
|
|
|
701,516 |
|
Total Deposits |
|
5,271,279 |
|
|
|
5,313,557 |
|
|
|
5,135,871 |
|
|
|
|
|
|
|
||||||
Borrowings |
|
204,153 |
|
|
|
166,644 |
|
|
|
286,193 |
|
Other Liabilities |
|
40,912 |
|
|
|
48,901 |
|
|
|
45,210 |
|
TOTAL LIABILITIES |
|
5,516,344 |
|
|
|
5,529,102 |
|
|
|
5,467,274 |
|
|
|
|
|
|
|
||||||
SHAREHOLDERS’ EQUITY |
|
|
|
|
|
||||||
Common Stock and Surplus |
|
421,262 |
|
|
|
420,434 |
|
|
|
418,530 |
|
Retained Earnings |
|
498,340 |
|
|
|
485,256 |
|
|
|
447,475 |
|
Accumulated Other Comprehensive Income (Loss) |
|
(175,039 |
) |
|
|
(217,869 |
) |
|
|
(327,613 |
) |
SHAREHOLDERS’ EQUITY |
|
744,563 |
|
|
|
687,821 |
|
|
|
538,392 |
|
|
|
|
|
|
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
$ |
6,260,907 |
|
|
$ |
6,216,923 |
|
|
$ |
6,005,666 |
|
|
|
|
|
|
|
||||||
END OF PERIOD SHARES OUTSTANDING |
|
29,679,466 |
|
|
|
29,679,248 |
|
|
|
29,575,451 |
|
|
|
|
|
|
|
||||||
TANGIBLE BOOK VALUE PER SHARE (1) |
$ |
18.90 |
|
|
$ |
16.97 |
|
|
$ |
11.87 |
|
|
|
|
|
|
|
||||||
|
|||||||||||
(1) Tangible Book Value per Share is defined as Total Shareholders’ Equity less Goodwill and Other Intangible Assets divided by End of Period Shares Outstanding. |
|||||||||||
GERMAN AMERICAN BANCORP, INC. |
||||||||||||||||
(unaudited, dollars in thousands except per share data) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
Consolidated Statements of Income |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
Three Months Ended |
|
Nine Months Ended |
|||||||||||||
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
|||||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|||||||
Interest and Fees on Loans |
$ |
61,140 |
|
$ |
59,230 |
|
|
$ |
55,196 |
|
$ |
178,196 |
|
|
$ |
156,459 |
Interest on Short-term Investments |
|
2,223 |
|
|
2,383 |
|
|
|
199 |
|
|
4,905 |
|
|
|
1,204 |
Interest and Dividends on Investment Securities |
|
11,290 |
|
|
9,964 |
|
|
|
10,247 |
|
|
31,387 |
|
|
|
31,982 |
TOTAL INTEREST INCOME |
|
74,653 |
|
|
71,577 |
|
|
|
65,642 |
|
|
214,488 |
|
|
|
189,645 |
|
|
|
|
|
|
|
|
|
|
|||||||
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|||||||
Interest on Deposits |
|
23,375 |
|
|
23,385 |
|
|
|
15,578 |
|
|
67,749 |
|
|
|
37,906 |
Interest on Borrowings |
|
2,684 |
|
|
2,221 |
|
|
|
2,505 |
|
|
7,180 |
|
|
|
6,913 |
TOTAL INTEREST EXPENSE |
|
26,059 |
|
|
25,606 |
|
|
|
18,083 |
|
|
74,929 |
|
|
|
44,819 |
|
|
|
|
|
|
|
|
|
|
|||||||
NET INTEREST INCOME |
|
48,594 |
|
|
45,971 |
|
|
|
47,559 |
|
|
139,559 |
|
|
|
144,826 |
Provision for Credit Losses |
|
625 |
|
|
625 |
|
|
|
900 |
|
|
2,150 |
|
|
|
2,550 |
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES |
|
47,969 |
|
|
45,346 |
|
|
|
46,659 |
|
|
137,409 |
|
|
|
142,276 |
|
|
|
|
|
|
|
|
|
|
|||||||
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|||||||
Net Gains on Sales of Loans |
|
704 |
|
|
969 |
|
|
|
614 |
|
|
2,424 |
|
|
|
1,831 |
Net Gains (Losses) on Securities |
|
70 |
|
|
(34,893 |
) |
|
|
— |
|
|
(34,788 |
) |
|
|
40 |
Other Non-interest Income |
|
13,027 |
|
|
52,847 |
|
|
|
14,190 |
|
|
80,910 |
|
|
|
42,796 |
TOTAL NON-INTEREST INCOME |
|
13,801 |
|
|
18,923 |
|
|
|
14,804 |
|
|
48,546 |
|
|
|
44,667 |
|
|
|
|
|
|
|
|
|
|
|||||||
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|||||||
Salaries and Benefits |
|
19,718 |
|
|
20,957 |
|
|
|
20,347 |
|
|
61,853 |
|
|
|
62,296 |
Other Non-interest Expenses |
|
16,408 |
|
|
16,717 |
|
|
|
15,074 |
|
|
48,685 |
|
|
|
46,467 |
TOTAL NON-INTEREST EXPENSE |
|
36,126 |
|
|
37,674 |
|
|
|
35,421 |
|
|
110,538 |
|
|
|
108,763 |
|
|
|
|
|
|
|
|
|
|
|||||||
Income before Income Taxes |
|
25,644 |
|
|
26,595 |
|
|
|
26,042 |
|
|
75,417 |
|
|
|
78,180 |
Income Tax Expense |
|
4,596 |
|
|
6,065 |
|
|
|
4,591 |
|
|
14,817 |
|
|
|
13,799 |
|
|
|
|
|
|
|
|
|
|
|||||||
NET INCOME |
$ |
21,048 |
|
$ |
20,530 |
|
|
$ |
21,451 |
|
$ |
60,600 |
|
|
$ |
64,381 |
|
|
|
|
|
|
|
|
|
|
|||||||
BASIC EARNINGS PER SHARE |
$ |
0.71 |
|
$ |
0.69 |
|
|
$ |
0.73 |
|
$ |
2.04 |
|
|
$ |
2.18 |
DILUTED EARNINGS PER SHARE |
$ |
0.71 |
|
$ |
0.69 |
|
|
$ |
0.73 |
|
$ |
2.04 |
|
|
$ |
2.18 |
|
|
|
|
|
|
|
|
|
|
|||||||
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
29,679,464 |
|
|
29,667,770 |
|
|
|
29,573,461 |
|
|
29,649,020 |
|
|
|
29,551,558 |
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING |
|
29,679,464 |
|
|
29,667,770 |
|
|
|
29,573,461 |
|
|
29,649,020 |
|
|
|
29,551,558 |
GERMAN AMERICAN BANCORP, INC. |
|||||||||||||||||||
(unaudited, dollars in thousands except per share data) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||||||
|
September 30, 2024 |
|
June 30, 2024 |
|
September 30, 2023 |
|
September 30, 2024 |
|
September 30, 2023 |
||||||||||
EARNINGS PERFORMANCE RATIOS |
|
|
|
|
|
||||||||||||||
Annualized Return on Average Assets |
|
1.35 |
% |
|
1.32 |
% |
|
1.43 |
% |
|
1.31 |
% |
|
1.42 |
% |
||||
Annualized Return on Average Equity |
|
11.97 |
% |
|
12.64 |
% |
|
14.36 |
% |
|
12.06 |
% |
|
14.47 |
% |
||||
Annualized Return on Average Tangible Equity (1) |
|
16.20 |
% |
|
17.67 |
% |
|
20.95 |
% |
|
16.66 |
% |
|
21.21 |
% |
||||
Net Interest Margin |
|
3.47 |
% |
|
3.34 |
% |
|
3.57 |
% |
|
3.39 |
% |
|
3.63 |
% |
||||
Efficiency Ratio (2) |
|
56.15 |
% |
|
36.66 |
% |
|
54.33 |
% |
|
47.95 |
% |
|
54.84 |
% |
||||
Net Overhead Expense to Average Earning Assets (3) |
|
1.56 |
% |
|
1.31 |
% |
|
1.51 |
% |
|
1.46 |
% |
|
1.55 |
% |
||||
|
|
|
|
|
|
||||||||||||||
ASSET QUALITY RATIOS |
|
|
|
|
|
||||||||||||||
Annualized Net Charge-offs to Average Loans |
|
0.04 |
% |
|
0.04 |
% |
|
0.05 |
% |
|
0.06 |
% |
|
0.07 |
% |
||||
Allowance for Credit Losses to Period End Loans |
|
1.09 |
% |
|
1.09 |
% |
|
1.15 |
% |
|
|
||||||||
Non-performing Assets to Period End Assets |
|
0.15 |
% |
|
0.12 |
% |
|
0.21 |
% |
|
|
||||||||
Non-performing Loans to Period End Loans |
|
0.24 |
% |
|
0.18 |
% |
|
0.32 |
% |
|
|
||||||||
Loans 30-89 Days Past Due to Period End Loans |
|
0.28 |
% |
|
0.32 |
% |
|
0.33 |
% |
|
|
||||||||
|
|
|
|
|
|
||||||||||||||
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA |
|
|
|
|
|
||||||||||||||
Average Assets |
$ |
6,216,284 |
|
$ |
6,230,676 |
|
$ |
6,003,069 |
|
$ |
6,183,231 |
|
$ |
6,038,423 |
|
||||
Average Earning Assets |
$ |
5,707,634 |
|
$ |
5,709,014 |
|
$ |
5,472,482 |
|
$ |
5,669,302 |
|
$ |
5,510,292 |
|
||||
Average Total Loans |
$ |
4,052,673 |
|
$ |
4,022,612 |
|
$ |
3,855,586 |
|
$ |
4,015,973 |
|
$ |
3,805,903 |
|
||||
Average Demand Deposits |
$ |
1,411,377 |
|
$ |
1,421,710 |
|
$ |
1,524,682 |
|
$ |
1,419,745 |
|
$ |
1,568,348 |
|
||||
Average Interest Bearing Liabilities |
$ |
4,050,903 |
|
$ |
4,114,351 |
|
$ |
3,834,272 |
|
$ |
4,046,128 |
|
$ |
3,831,030 |
|
||||
Average Equity |
$ |
703,377 |
|
$ |
649,886 |
|
$ |
597,375 |
|
$ |
670,136 |
|
$ |
593,270 |
|
||||
|
|
|
|
|
|
||||||||||||||
Period End Non-performing Assets (4) |
$ |
9,701 |
|
$ |
7,322 |
|
$ |
12,400 |
|
|
|
||||||||
Period End Non-performing Loans (5) |
$ |
9,701 |
|
$ |
7,289 |
|
$ |
12,376 |
|
|
|
||||||||
Period End Loans 30-89 Days Past Due (6) |
$ |
11,501 |
|
$ |
12,766 |
|
$ |
12,673 |
|
|
|
||||||||
|
|
|
|
|
|
||||||||||||||
Tax-Equivalent Net Interest Income |
$ |
49,745 |
|
$ |
47,497 |
|
$ |
49,136 |
|
$ |
143,881 |
|
$ |
149,690 |
|
||||
Net Charge-offs during Period |
$ |
447 |
|
$ |
433 |
|
$ |
520 |
|
$ |
1,791 |
|
$ |
2,072 |
|
||||
|
|
|
|
|
|
||||||||||||||
(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. |
|||||||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241028597524/en/
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M Rust, President and Chief Financial Officer
(812) 482-1314
Source: German American Bancorp, Inc.
FAQ
What was German American Bancorp's (GABC) earnings per share in Q3 2024?
What was GABC's net interest margin in Q3 2024?
How much was GABC's quarterly dividend announced for Q3 2024?
What was GABC's total loan growth in Q3 2024?
