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UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended March 31, 2025 Commission File Number 001-15877 German American Bancorp, Inc. (Exact name of registrant as specified in its charter) Indiana 35-1547518 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 711 Main Street, Jasper, Indiana 47546 (Address of Principa ...

Core Insights - German American Bancorp (GABC) reported a revenue of $81.41 million for Q1 2025, marking a year-over-year increase of 33.9% and exceeding the Zacks Consensus Estimate of $79.1 million by 2.92% [1] - The company's EPS for the same quarter was $0.79, up from $0.64 a year ago, representing a surprise of 9.72% compared to the consensus estimate of $0.72 [1] Financial Performance Metrics - Efficiency ratio was reported at 61.3%, higher than the estimated 56.3% by analysts [4] - Net Interest Margin stood at 4%, surpassing the average estimate of 3.7% [4] - Net charge-offs to average loans were 0%, compared to the estimated 0.1% [4] - Total Average Interest Earning Assets reached $6.92 billion, exceeding the estimate of $6.85 billion [4] - Net Gains on Sales of Loan were $0.83 million, slightly below the estimated $0.90 million [4] - Total Non-interest Income was reported at $14.84 million, lower than the estimated $15.95 million [4] - Net interest income (FTE) was $67.89 million, compared to the average estimate of $62.41 million [4] - Service charges on deposit accounts were $3.49 million, below the estimated $3.81 million [4] - Net Interest Income was reported at $66.57 million, exceeding the estimate of $63.51 million [4] Stock Performance - Shares of German American Bancorp have returned -3.1% over the past month, outperforming the Zacks S&P 500 composite's -4.3% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]

Company Performance - German American Bancorp (GABC) reported quarterly earnings of $0.79 per share, exceeding the Zacks Consensus Estimate of $0.72 per share, and up from $0.64 per share a year ago, representing an earnings surprise of 9.72% [1] - The company posted revenues of $81.41 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.92%, compared to year-ago revenues of $60.82 million [2] - Over the last four quarters, the company has consistently surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Outlook - The stock has underperformed the market, losing about 9.2% since the beginning of the year, compared to the S&P 500's decline of 6.1% [3] - The current consensus EPS estimate for the coming quarter is $0.82 on revenues of $89.4 million, and for the current fiscal year, it is $3.27 on revenues of $351.25 million [7] - The estimate revisions trend for German American Bancorp is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Banks - Midwest industry, to which German American Bancorp belongs, is currently ranked in the top 18% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

NEWS RELEASE For additional information, contact: D. Neil Dauby, Chairman and Chief Executive Officer Bradley M Rust, President and Chief Financial Officer (812) 482-1314 l of 20 APRIL 28, 2025 GERMAN AMERICAN BANCORP, INC. (GABC) REPORTS FIRST QUARTER 2025 EARNINGS; CLOSES ON HEARTLAND MERGER Jasper, Indiana: German American Bancorp, Inc. (Nasdaq: GABC) reported first quarter earnings of $10.5 million, or $0.30 per share. The first quarter earnings included the results of Heartland BancCorp ("Heartland"), ...

Company Overview - German American Bancorp (GABC) is a financial services holding company headquartered in Jasper, operating in the Finance sector [3] - The stock has experienced a price decline of 9.55% since the beginning of the year [3] Dividend Information - GABC currently pays a dividend of $0.29 per share, resulting in a dividend yield of 3.19%, which is lower than the Banks - Midwest industry's yield of 3.44% but higher than the S&P 500's yield of 1.69% [3] - The annualized dividend of $1.16 represents a 7.4% increase from the previous year, with a five-year average annual increase of 9.04% [4] - The company's payout ratio stands at 38%, indicating that it distributes 38% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - GABC is projected to see earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $3.27 per share, reflecting a year-over-year growth rate of 15.55% [5] Investment Appeal - GABC is considered an attractive dividend investment, improving stock investing profits and decreasing overall portfolio risk [6] - The company holds a Zacks Rank of 1 (Strong Buy), indicating it is viewed as a compelling investment opportunity [7]

German American Bancorp (GABC) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Sinc ...

Company Overview - German American Bancorp (GABC) is headquartered in Jasper and operates in the Finance sector, with a stock price change of -2.46% since the beginning of the year [3] - The company currently pays a dividend of $0.29 per share, resulting in a dividend yield of 2.96%, which is slightly below the Banks - Midwest industry's yield of 2.99% but significantly higher than the S&P 500's yield of 1.57% [3] Dividend Performance - The current annualized dividend of $1.16 represents a 7.4% increase from the previous year, and over the last five years, GABC has increased its dividend five times, averaging an annual increase of 8.81% [4] - The company's payout ratio is currently 38%, indicating that it pays out 38% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - GABC is projected to experience earnings growth this fiscal year, with the Zacks Consensus Estimate for 2025 at $3.27 per share, reflecting a year-over-year growth rate of 15.55% [5] Investment Appeal - GABC is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [7]

Economic Conditions and Risks - The company operates primarily in Indiana, Kentucky, and Ohio, making its performance highly dependent on economic conditions in these regions [109]. - Current economic conditions are impacted by inflation rates above the Federal Reserve's target, which could adversely affect profitability and increase loan delinquencies [110]. - Economic slowdowns or health crises could lead to increased delinquencies, defaults, and foreclosures, negatively impacting the company's loan portfolio [115]. - Changes in federal or state tax laws could negatively affect the company's financial condition and results of operations [120]. - The competitive landscape for deposits has been impacted by recent bank failures, which may affect future operating results and capital [127]. Financial Performance - Net income for the year ended December 31, 2024, totaled $83,811,000, or $2.83 per share, a decline of approximately 3% from the previous year's net income of $85,888,000, or $2.91 per share [198]. - The net income for 2024 included merger-related transaction costs of approximately $1,370,000, which amounted to $1,082,000 after-tax, or $0.04 per share [220]. - The sale of substantially all assets of German American Insurance, Inc. resulted in an after-tax gain of approximately $27,476,000, or $0.93 per share, during 2024 [199]. - Non-interest income for the year ended December 31, 2024, increased by $2,399,000, or 4%, totaling $62,660,000 compared to $60,261,000 in 2023 [239][240]. - The effective tax rate increased to 19.5% in 2024, up from 17.1% in 2023, influenced by the GAI asset sale and securities restructuring [253]. Securities and Investment Portfolio - The company has experienced significant unrealized losses in its available-for-sale securities portfolio due to rising market interest rates, which could affect market perceptions and depositor confidence [124]. - A restructuring of the securities portfolio involved selling available-for-sale securities totaling approximately $375.3 million in book value, resulting in an after-tax loss of approximately $27.2 million [194]. - As of December 31, 2024, gross unrealized gains on the available-for-sale securities portfolio totaled approximately $413,000, while gross unrealized losses amounted to approximately $279,166,000 [214]. - The net loss on securities for 2024 was $34,788,000, primarily due to a restructuring transaction, impacting earnings significantly [243]. Credit and Loan Management - The company maintains an allowance for credit losses based on historical loss experience, but if actual loan losses exceed estimates, it could materially impact earnings and financial condition [111]. - The provision for credit losses in 2024 was $2,775,000, compared to $2,550,000 in 2023 and $6,350,000 in 2022 [233]. - The allowance for credit losses was $44.4 million as of December 31, 2024, reflecting a stable risk management approach in the loan portfolio [268]. - The Company has a comprehensive risk-grading and loan review program that includes quarterly reviews of problem loans, delinquencies, and charge-offs [305]. Regulatory and Compliance Risks - The company is subject to extensive federal and state regulations, and changes in these regulations could adversely affect its operations and financial condition [138]. - Legislative and regulatory initiatives related to climate change may increase compliance costs and risks, impacting the company's operations [133]. - The company currently meets the capital requirements set forth in Basel III but may face stricter requirements in the future, which could limit its ability to lend and grow [142]. Operational and Cybersecurity Risks - The company faces risks from potential cyber-attacks and information security breaches, which could disrupt operations and expose it to liability [110]. - Cybersecurity risks are heightened due to the nature of the financial services industry, and breaches could severely damage the company's reputation and operations [150]. - The company has a comprehensive enterprise risk management program that includes cybersecurity as a critical component [163]. Capital and Shareholder Equity - Shareholders' equity rose by $51.5 million to $715.1 million as of December 31, 2024, driven by retained earnings of $52.0 million from net income [256]. - The total capital ratio for the consolidated entity was 17.15% as of December 31, 2024, up from 16.50% in 2023, significantly exceeding the minimum regulatory requirement of 8.00% [262]. - The company’s Tier 1 capital ratio was 15.72% as of December 31, 2024, compared to 14.97% in 2023, indicating strong capital adequacy [262]. Acquisitions and Growth - German American Bancorp completed the acquisition of Heartland BancCorp on February 1, 2025, with Heartland having total assets of approximately $1.97 billion, total loans of approximately $1.56 billion, and total deposits of approximately $1.75 billion [192]. - The company issued approximately 7.74 million shares and paid approximately $23.1 million in cash for the Heartland acquisition [192]. Deposit and Funding Sources - The company had no brokered deposits as of December 31, 2024, and reciprocal deposits totaled $96.8 million, up from $77.9 million in 2023 [295]. - Total funding sources increased by $94.1 million, or 2%, to $5.501 billion in 2024, compared to $5.407 billion in 2023 [289]. - Average core deposits decreased by approximately $98.6 million, or 2%, in 2024 compared to 2023, following a decline of $622.8 million, or 11%, in 2023 compared to 2022 [290].

Group 1 - The stock of German American Bancorp, Inc. (GABC) is experiencing significant attention due to high implied volatility in the options market, particularly for the March 21, 2025 $40 Call option [1] - Implied volatility indicates market expectations for future stock movement, suggesting potential upcoming events that could lead to substantial price changes [2] - German American Bancorp holds a Zacks Rank 1 (Strong Buy) in the Banks – Midwest industry, which is in the top 2% of the Zacks Industry Rank, with analysts increasing earnings estimates significantly over the last 60 days [3] Group 2 - The high implied volatility for German American Bancorp may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]