German American Bancorp, Inc. (GABC) Reports Third Quarter 2020 Earnings
German American Bancorp (GABC) reported Q3 2020 net income of $14.6 million, or $0.55 per share, marking a 12% increase from $13.1 million in Q3 2019. This quarter also saw a 2% rise from Q2 2020's $14.3 million. The earnings boost stemmed from a $1.2 million increase in non-interest income and a $2.5 million decrease in non-interest expenses, offset by a $1.7 million rise in the provision for credit losses due to COVID-19 impacts. Total assets reached $4.85 billion, with loans at approximately $3.2 billion, including $351 million in PPP loans.
- 12% year-over-year increase in net income for Q3 2020
- Total deposits increased by 16% year-over-year, reaching $4.0 billion
- Non-interest income grew by 10% year-over-year to $13.3 million
- Provision for credit losses increased by $1.7 million due to COVID-19 uncertainties
- Non-performing assets rose to $23.3 million, up from $19.6 million in Q2 2020
JASPER, Indiana, Oct. 26, 2020 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (Nasdaq: GABC) reported third quarter earnings of
Relative to the year-over-year comparison, third quarter 2020 earnings were positively impacted by a
End-of-period loans, as of September 30, 2020, were approximately
Commenting on the Company’s third quarter performance, Mark A. Schroeder, German American’s Chairman & CEO, stated, "In the face of an extremely difficult environment, we’re pleased to be able to report another period of very solid profitability during the third quarter of 2020, producing
Schroeder continued, “The current environment of extremely low general market interest rates makes it very difficult to drive growth of net interest income. Additionally, it’s prudent to continue to enhance the level of our allowance for credit losses until the future economic impact of the pandemic is more readily determinable. In spite of these headwinds, we were, nevertheless, able to generate very strong
The Company also announced its Board of Directors declared a regular quarterly cash dividend of
COVID-19 Pandemic Loan Information
The Company is participating in the Paycheck Protection Program (“PPP”) for loans provided through the Small Business Administration (“SBA”), as established under the Coronavirus Aid, Relief and Economic Security Act (the "CARES Act"). Under this program, the Company has lent funds primarily to its existing loan and/or deposit customers, based on a pre-determined SBA-developed formula, intended to incentivize small business owners to retain their employees. These loans carry a customer interest rate of
In response to requests from borrowers who have experienced pandemic-related business or personal cash flow interruptions, and in accordance with recently issued regulatory guidance, the Company has made short-term loan modifications involving both interest only and full payment deferrals. As of September 30, 2020 the following active payment modifications are still in effect. These payment modifications are significantly reduced from the level of active modifications as of June 30, 2020.
| Type of Loans | Outstanding | % of Loan Category (Excludes PPP Loans) | |||||||||||
| (dollars in thousands) | Number of Loans | Balance | As of 9/30/2020 | As of 6/30/2020 | |||||||||
| Commercial & Industrial Loans | 24 | $ | 6,154 | 1.2 | % | 10.8 | % | ||||||
| Commercial Real Estate Loans | 44 | 82,986 | 5.7 | % | 15.3 | % | |||||||
| Agricultural Loans | — | — | — | % | 0.3 | % | |||||||
| Consumer Loans | 1 | 3 | n/m(1) | 0.4 | % | ||||||||
| Residential Mortgage Loans | 12 | 1,275 | 0.5 | % | 8.2 | % | |||||||
| Total | 81 | $ | 90,418 | 3.1 | % | 10.4 | % | ||||||
| (1) n/m = not meaningful | |||||||||||||
The Company tracks lending exposure by industry classification to determine potential risk associated with industry concentrations, if any, that could lead to additional credit loss exposure. As a result of the COVID-19 pandemic, the Company has initially identified loan segments that could represent a potentially higher level of credit risk, as many of these customers may have incurred a significant negative impact to their businesses as a result of governmental stay-at-home orders and travel restrictions. At September 30, 2020, the Company had the following exposure to these potentially sensitive COVID-19 identified loan segments:
| Industry Segment (dollars in thousands) | Number of Loans | Outstanding Balance | % of Total Loans (excludes PPP Loans) | % of Industry Segment Under Deferral | ||||||||
| Lodging / Hotels | 49 | $ | 133,063 | 4.6 | % | 39.1 | % | |||||
| Student Housing | 105 | 92,224 | 3.2 | % | — | % | ||||||
| Retail Shopping / Strip Centers | 64 | 92,996 | 3.2 | % | 17.5 | % | ||||||
| Restaurants | 189 | 49,402 | 1.7 | % | 8.6 | % | ||||||
Balance Sheet Highlights
Total assets for the Company totaled
September 30, 2020 total loans decreased
PPP loans totaled
| End of Period Loan Balances | 9/30/2020 | 6/30/2020 | 9/30/2019 | |||||||||
| (dollars in thousands) | ||||||||||||
| Commercial & Industrial Loans | $ | 839,022 | $ | 852,416 | $ | 579,152 | ||||||
| Commercial Real Estate Loans | 1,453,280 | 1,473,234 | 1,477,204 | |||||||||
| Agricultural Loans | 376,215 | 373,483 | 386,685 | |||||||||
| Consumer Loans | 294,276 | 291,555 | 305,027 | |||||||||
| Residential Mortgage Loans | 262,439 | 280,246 | 312,674 | |||||||||
| $ | 3,225,232 | $ | 3,270,934 | $ | 3,060,742 | |||||||
The Company’s allowance for credit losses totaled
The Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) ("CECL") on January 1, 2020. As a result, the Company recognized a one-time cumulative adjustment to the allowance for credit losses of
The allowance for credit losses increased during the quarter ended September 30, 2020, as a result of the Company recording a
Non-performing assets totaled
| Non-performing Assets | |||||||||||
| (dollars in thousands) | |||||||||||
| 9/30/2020 | 6/30/2020 | 9/30/2019 | |||||||||
| Non-Accrual Loans | $ | 22,878 | $ | 16,183 | $ | 13,512 | |||||
| Past Due Loans (90 days or more) | — | 2,948 | — | ||||||||
| Total Non-Performing Loans | 22,878 | 19,131 | 13,512 | ||||||||
| Other Real Estate | 425 | 425 | 625 | ||||||||
| Total Non-Performing Assets | $ | 23,303 | $ | 19,556 | $ | 14,137 | |||||
| Restructured Loans | $ | 113 | $ | 114 | $ | 117 | |||||
September 30, 2020 total deposits remained stable, increasing
| End of Period Deposit Balances | 9/30/2020 | 6/30/2020 | 9/30/2019 | |||||||||
| (dollars in thousands) | ||||||||||||
| Non-interest-bearing Demand Deposits | $ | 1,185,814 | $ | 1,139,928 | $ | 827,259 | ||||||
| IB Demand, Savings, and MMDA Accounts | 2,278,826 | 2,267,092 | 1,910,395 | |||||||||
| Time Deposits < | 272,530 | 293,059 | 323,746 | |||||||||
| Time Deposits > | 242,504 | 279,354 | 369,886 | |||||||||
| $ | 3,979,674 | $ | 3,979,433 | $ | 3,431,286 | |||||||
Results of Operations Highlights – Quarter ended September 30, 2020
Net income for the quarter ended September 30, 2020 totaled
| Summary Average Balance Sheet | |||||||||||||||||||||||||||||||||
| (Tax-equivalent basis / dollars in thousands) | |||||||||||||||||||||||||||||||||
| Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||||||||||||||||||
| September 30, 2020 | June 30, 2020 | September 30, 2019 | |||||||||||||||||||||||||||||||
| 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 | $ | 197,203 | $ | 45 | 0.09 | % | $ | 239,164 | $ | 84 | 0.14 | % | $ | 31,230 | $ | 163 | 2.07 | % | |||||||||||||||
| Securities | 1,021,111 | 6,369 | 2.49 | % | 897,193 | 6,087 | 2.71 | % | 870,369 | 6,472 | 2.97 | % | |||||||||||||||||||||
| Loans and Leases | 3,260,435 | 36,612 | 4.47 | % | 3,253,169 | 38,154 | 4.71 | % | 3,076,931 | 41,008 | 5.29 | % | |||||||||||||||||||||
| Total Interest Earning Assets | $ | 4,478,749 | $ | 43,026 | 3.83 | % | $ | 4,389,526 | $ | 44,325 | 4.06 | % | $ | 3,978,530 | $ | 47,643 | 4.76 | % | |||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||
| Demand Deposit Accounts | $ | 1,144,685 | $ | 1,074,739 | $ | 797,337 | |||||||||||||||||||||||||||
| IB Demand, Savings, and | |||||||||||||||||||||||||||||||||
| MMDA Accounts | $ | 2,279,517 | $ | 813 | 0.14 | % | $ | 2,220,549 | $ | 1,535 | 0.28 | % | $ | 1,946,219 | $ | 3,189 | 0.65 | % | |||||||||||||||
| Time Deposits | 540,248 | 1,679 | 1.24 | % | 586,179 | 2,208 | 1.51 | % | 725,347 | 3,210 | 1.75 | % | |||||||||||||||||||||
| FHLB Advances and Other Borrowings | 212,859 | 1,233 | 2.30 | % | 227,562 | 1,339 | 2.37 | % | 286,587 | 1,934 | 2.68 | % | |||||||||||||||||||||
| Total Interest-Bearing Liabilities | $ | 3,032,624 | $ | 3,725 | 0.49 | % | $ | 3,034,290 | $ | 5,082 | 0.67 | % | $ | 2,958,153 | $ | 8,333 | 1.12 | % | |||||||||||||||
| Cost of Funds | 0.33 | % | 0.47 | % | 0.83 | % | |||||||||||||||||||||||||||
| Net Interest Income | $ | 39,301 | $ | 39,243 | $ | 39,310 | |||||||||||||||||||||||||||
| Net Interest Margin | 3.50 | % | 3.59 | % | 3.93 | % | |||||||||||||||||||||||||||
During the third quarter of 2020, net interest income totaled
The relative stability in net interest income during the third quarter of 2020 compared with the second quarter of 2020 and the third quarter of 2019 was largely attributable to an increased level of average earning assets driven by participation in the PPP and a larger investment portfolio driven by significant deposit growth during the second quarter of 2020. The average balance of PPP loans during the third quarter of 2020 was
The tax equivalent net interest margin for the quarter ended September 30, 2020 was
During the quarter ended September 30, 2020, the Company recorded a provision for credit losses of
Net charge-offs totaled
During the quarter ended September 30, 2020, non-interest income totaled
| Quarter Ended | Quarter Ended | Quarter Ended | ||||||||||
| Non-interest Income | 9/30/2020 | 6/30/2020 | 9/30/2019 | |||||||||
| (dollars in thousands) | ||||||||||||
| Trust and Investment Product Fees | $ | 1,957 | $ | 1,867 | $ | 1,885 | ||||||
| Service Charges on Deposit Accounts | 1,773 | 1,365 | 2,395 | |||||||||
| Insurance Revenues | 1,989 | 1,830 | 1,883 | |||||||||
| Company Owned Life Insurance | 355 | 356 | 364 | |||||||||
| Interchange Fee Income | 2,795 | 2,476 | 2,538 | |||||||||
| Other Operating Income | 942 | 882 | 1,029 | |||||||||
| Subtotal | 9,811 | 8,776 | 10,094 | |||||||||
| Net Gains on Loans | 2,861 | 2,654 | 1,649 | |||||||||
| Net Gains on Securities | 607 | 993 | 313 | |||||||||
| Total Non-interest Income | $ | 13,279 | $ | 12,423 | $ | 12,056 | ||||||
Service charges on deposit accounts increased
Interchange fee income increased
Net gains on sales of loans increased
The Company realized
During the quarter ended September 30, 2020, non-interest expense totaled
| Quarter Ended | Quarter Ended | Quarter Ended | ||||||||||
| Non-interest Expense | 9/30/2020 | 6/30/2020 | 9/30/2019 | |||||||||
| (dollars in thousands) | ||||||||||||
| Salaries and Employee Benefits | $ | 17,409 | $ | 15,882 | $ | 17,579 | ||||||
| Occupancy, Furniture and Equipment Expense | 3,362 | 3,481 | 3,751 | |||||||||
| FDIC Premiums | 326 | 123 | — | |||||||||
| Data Processing Fees | 1,693 | 1,763 | 2,860 | |||||||||
| Professional Fees | 875 | 1,082 | 1,324 | |||||||||
| Advertising and Promotion | 708 | 882 | 1,054 | |||||||||
| Intangible Amortization | 860 | 909 | 1,064 | |||||||||
| Other Operating Expenses | 4,187 | 3,966 | 4,329 | |||||||||
| Total Non-interest Expense | $ | 29,420 | $ | 28,088 | $ | 31,961 | ||||||
Salaries and benefits increased
Occupancy, furniture and equipment expense declined
FDIC premiums increased
Data processing fees declined
Professional fees declined
Advertising and promotion expense declined
Other operating expenses increased
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 73 banking offices in 20 contiguous southern Indiana counties and eight 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. 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 the unknown future direction of interest rates and the timing and magnitude of any changes in interest rates; changes in competitive conditions; the introduction, withdrawal, success and timing of asset/liability management strategies or of mergers and acquisitions and other business initiatives and strategies; changes in customer borrowing, repayment, investment and deposit practices; changes in fiscal, monetary and tax policies; changes in financial and capital markets; potential deterioration in general economic conditions, either nationally or locally, resulting in, among other things, credit quality deterioration; the severity and duration of the COVID-19 pandemic and its impact on general economic and financial market conditions and our business, results of operations and financial condition; our participation in the Paycheck Protection Program administered by the Small Business Administration; capital management activities, including possible future sales of new securities, or possible repurchases or redemptions by the Company of outstanding debt or equity securities; 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 of the acquired institution or branches, and difficulties in integration of the acquired operations; factors driving impairment charges on investments; the impact, extent and timing of technological changes; potential cyber-attacks, information security breaches and other criminal activities; litigation liabilities, including related costs, expenses, settlements and judgments, or the outcome of matters before regulatory agencies, whether pending or commencing in the future; actions of the Federal Reserve Board; changes in accounting principles and interpretations; potential increases of federal deposit insurance premium expense, and possible future special assessments of FDIC premiums, either industry wide or specific to the Company’s banking subsidiary; 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; 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; the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends; and other risk factors expressly identified in the Company’s filings with the United States Securities and Exchange Commission. 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 the Company. 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, 2020 | June 30, 2020 | September 30, 2019 | |||||||||
| ASSETS | |||||||||||
| Cash and Due from Banks | $ | 56,706 | $ | 53,081 | $ | 64,791 | |||||
| Short-term Investments | 194,476 | 227,275 | 26,328 | ||||||||
| Investment Securities | 1,037,263 | 962,623 | 849,798 | ||||||||
| Loans Held-for-Sale | 27,993 | 21,756 | 19,156 | ||||||||
| Loans, Net of Unearned Income | 3,221,127 | 3,266,347 | 3,056,907 | ||||||||
| Allowance for Credit Losses | (46,768 | ) | (42,431 | ) | (15,869 | ) | |||||
| Net Loans | 3,174,359 | 3,223,916 | 3,041,038 | ||||||||
| Stock in FHLB and Other Restricted Stock | 13,168 | 13,368 | 13,968 | ||||||||
| Premises and Equipment | 96,682 | 96,748 | 98,754 | ||||||||
| Goodwill and Other Intangible Assets | 131,783 | 132,676 | 133,818 | ||||||||
| Other Assets | 120,400 | 119,608 | 108,231 | ||||||||
| TOTAL ASSETS | $ | 4,852,830 | $ | 4,851,051 | $ | 4,355,882 | |||||
| LIABILITIES | |||||||||||
| Non-interest-bearing Demand Deposits | $ | 1,185,814 | $ | 1,139,928 | $ | 827,259 | |||||
| Interest-bearing Demand, Savings, and Money Market Accounts | 2,278,826 | 2,267,092 | 1,910,395 | ||||||||
| Time Deposits | 515,034 | 572,413 | 693,632 | ||||||||
| Total Deposits | 3,979,674 | 3,979,433 | 3,431,286 | ||||||||
| Borrowings | 214,544 | 219,700 | 316,687 | ||||||||
| Other Liabilities | 54,631 | 57,244 | 44,982 | ||||||||
| TOTAL LIABILITIES | 4,248,849 | 4,256,377 | 3,792,955 | ||||||||
| SHAREHOLDERS' EQUITY | |||||||||||
| Common Stock and Surplus | 300,659 | 300,514 | 305,270 | ||||||||
| Retained Earnings | 272,579 | 263,011 | 241,801 | ||||||||
| Accumulated Other Comprehensive Income | 30,743 | 31,149 | 15,856 | ||||||||
| SHAREHOLDERS' EQUITY | 603,981 | 594,674 | 562,927 | ||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 4,852,830 | $ | 4,851,051 | $ | 4,355,882 | |||||
| END OF PERIOD SHARES OUTSTANDING | 26,492,866 | 26,497,291 | 26,662,078 | ||||||||
| TANGIBLE BOOK VALUE PER SHARE (1) | $ | 17.82 | $ | 17.44 | $ | 16.09 | |||||
| (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, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||
| INTEREST INCOME | ||||||||||||||||||||
| Interest and Fees on Loans | $ | 36,543 | $ | 38,080 | $ | 40,921 | $ | 112,481 | $ | 111,086 | ||||||||||
| Interest on Short-term Investments | 45 | 84 | 163 | 287 | 389 | |||||||||||||||
| Interest and Dividends on Investment Securities | 5,525 | 5,377 | 5,827 | 16,457 | 17,661 | |||||||||||||||
| TOTAL INTEREST INCOME | 42,113 | 43,541 | 46,911 | 129,225 | 129,136 | |||||||||||||||
| INTEREST EXPENSE | ||||||||||||||||||||
| Interest on Deposits | 2,492 | 3,743 | 6,399 | 11,892 | 17,574 | |||||||||||||||
| Interest on Borrowings | 1,233 | 1,339 | 1,934 | 4,230 | 5,752 | |||||||||||||||
| TOTAL INTEREST EXPENSE | 3,725 | 5,082 | 8,333 | 16,122 | 23,326 | |||||||||||||||
| NET INTEREST INCOME | 38,388 | 38,459 | 38,578 | 113,103 | 105,810 | |||||||||||||||
| Provision for Credit Losses | 4,500 | 5,900 | 2,800 | 15,550 | 3,725 | |||||||||||||||
| NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 33,888 | 32,559 | 35,778 | 97,553 | 102,085 | |||||||||||||||
| NON-INTEREST INCOME | ||||||||||||||||||||
| Net Gain on Sales of Loans | 2,861 | 2,654 | 1,649 | 7,378 | 3,660 | |||||||||||||||
| Net Gain on Securities | 607 | 993 | 313 | 2,190 | 984 | |||||||||||||||
| Other Non-interest Income | 9,811 | 8,776 | 10,094 | 30,215 | 29,579 | |||||||||||||||
| TOTAL NON-INTEREST INCOME | 13,279 | 12,423 | 12,056 | 39,783 | 34,223 | |||||||||||||||
| NON-INTEREST EXPENSE | ||||||||||||||||||||
| Salaries and Benefits | 17,409 | 15,882 | 17,579 | 50,691 | 46,740 | |||||||||||||||
| Other Non-interest Expenses | 12,011 | 12,206 | 14,382 | 37,145 | 37,598 | |||||||||||||||
| TOTAL NON-INTEREST EXPENSE | 29,420 | 28,088 | 31,961 | 87,836 | 84,338 | |||||||||||||||
| Income before Income Taxes | 17,747 | 16,894 | 15,873 | 49,500 | 51,970 | |||||||||||||||
| Income Tax Expense | 3,154 | 2,639 | 2,809 | 8,180 | 8,568 | |||||||||||||||
| NET INCOME | $ | 14,593 | $ | 14,255 | $ | 13,064 | $ | 41,320 | $ | 43,402 | ||||||||||
| BASIC EARNINGS PER SHARE | $ | 0.55 | $ | 0.54 | $ | 0.49 | $ | 1.56 | $ | 1.70 | ||||||||||
| DILUTED EARNINGS PER SHARE | $ | 0.55 | $ | 0.54 | $ | 0.49 | $ | 1.56 | $ | 1.70 | ||||||||||
| WEIGHTED AVERAGE SHARES OUTSTANDING | 26,497,398 | 26,502,731 | 26,643,064 | 26,554,369 | 25,541,843 | |||||||||||||||
| DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING | 26,497,398 | 26,502,731 | 26,643,064 | 26,554,369 | 25,541,843 | |||||||||||||||
| GERMAN AMERICAN BANCORP, INC. | ||||||||||||||||||||||
| (unaudited, dollars in thousands except per share data) | ||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||
| 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||
| EARNINGS PERFORMANCE RATIOS | ||||||||||||||||||||||
| Annualized Return on Average Assets | 1.21 | % | 1.20 | % | 1.20 | % | 1.19 | % | 1.43 | % | ||||||||||||
| Annualized Return on Average Equity | 9.68 | % | 9.71 | % | 9.37 | % | 9.35 | % | 11.52 | % | ||||||||||||
| Annualized Return on Average Tangible Equity (1) | 12.40 | % | 12.53 | % | 12.36 | % | 12.08 | % | 15.14 | % | ||||||||||||
| Net Interest Margin | 3.50 | % | 3.59 | % | 3.93 | % | 3.60 | % | 3.89 | % | ||||||||||||
| Efficiency Ratio (2) | 55.95 | % | 54.36 | % | 62.22 | % | 56.55 | % | 59.31 | % | ||||||||||||
| Net Overhead Expense to Average Earning Assets (3) | 1.44 | % | 1.43 | % | 2.00 | % | 1.50 | % | 1.80 | % | ||||||||||||
| ASSET QUALITY RATIOS | ||||||||||||||||||||||
| Annualized Net Charge-offs to Average Loans | 0.02 | % | 0.01 | % | 0.41 | % | 0.03 | % | 0.17 | % | ||||||||||||
| Allowance for Credit Losses to Period End Loans | 1.45 | % | 1.30 | % | 0.52 | % | ||||||||||||||||
| Non-performing Assets to Period End Assets | 0.48 | % | 0.40 | % | 0.32 | % | ||||||||||||||||
| Non-performing Loans to Period End Loans | 0.71 | % | 0.59 | % | 0.44 | % | ||||||||||||||||
| Loans 30-89 Days Past Due to Period End Loans | 0.20 | % | 0.23 | % | 0.30 | % | ||||||||||||||||
| SELECTED BALANCE SHEET & OTHER FINANCIAL DATA | ||||||||||||||||||||||
| Average Assets | $ | 4,834,954 | $ | 4,751,772 | $ | 4,355,111 | $ | 4,641,563 | $ | 4,051,884 | ||||||||||||
| Average Earning Assets | $ | 4,478,749 | $ | 4,389,526 | $ | 3,978,530 | $ | 4,281,831 | $ | 3,712,930 | ||||||||||||
| Average Total Loans | $ | 3,260,435 | $ | 3,253,169 | $ | 3,076,931 | $ | 3,191,254 | $ | 2,840,435 | ||||||||||||
| Average Demand Deposits | $ | 1,144,685 | $ | 1,074,739 | $ | 797,337 | $ | 1,022,885 | $ | 735,097 | ||||||||||||
| Average Interest Bearing Liabilities | $ | 3,032,624 | $ | 3,034,290 | $ | 2,958,153 | $ | 2,978,430 | $ | 2,781,279 | ||||||||||||
| Average Equity | $ | 603,155 | $ | 587,472 | $ | 557,447 | $ | 588,925 | $ | 502,532 | ||||||||||||
| Period End Non-performing Assets (4) | $ | 23,303 | $ | 19,556 | $ | 14,137 | ||||||||||||||||
| Period End Non-performing Loans (5) | $ | 22,878 | $ | 19,131 | $ | 13,512 | ||||||||||||||||
| Period End Loans 30-89 Days Past Due (6) | $ | 6,523 | $ | 7,554 | $ | 9,054 | ||||||||||||||||
| Tax Equivalent Net Interest Income | $ | 39,301 | $ | 39,243 | $ | 39,310 | $ | 115,528 | $ | 107,964 | ||||||||||||
| Net Charge-offs during Period | $ | 163 | $ | 110 | $ | 3,170 | $ | 714 | $ | 3,679 | ||||||||||||
| (1 | ) | Average Tangible Equity is defined as Average Equity less Average Goodwill and Other Intangibles. | ||||||||||||||||||||
| (2 | ) | Efficiency Ratio is defined as Non-interest Expense divided by the sum of Net Interest Income, on a tax equivalent basis, and Non-interest Income. | ||||||||||||||||||||
| (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:
Mark A Schroeder, Chairman & Chief Executive Officer of German American Bancorp, Inc.
Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
FAQ
What were German American Bancorp's earnings for Q3 2020?
How much did total deposits increase for GABC as of September 30, 2020?
What factors impacted the provision for credit losses for GABC in Q3 2020?
How did non-interest income change for GABC in Q3 2020?
