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.
|
3/31/2024Ratio |
|
12/31/2023Ratio |
|
3/31/2023Ratio |
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
OfficerBradley M Rust, President and Chief
Financial Officer(812) 482-1314
German American Bancorp (NASDAQ:GABC)
Historical Stock Chart
From Apr 2024 to May 2024
German American Bancorp (NASDAQ:GABC)
Historical Stock Chart
From May 2023 to May 2024