German American Bancorp ( GABC ) is an Indiana-based financial holding company that owns the German American Bank. That bank has almost 100 offices throughout Indiana, Kentucky, and Ohio. With an excess of $8B in assets on the balance sheet, thisThe Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks. He is the leader of the investment group European Small Cap ...

Core Viewpoint - German American Bancorp reported strong financial results for the quarter ended December 2025, with significant year-over-year growth in revenue and earnings per share (EPS) [1] Financial Performance - Revenue for the quarter was $95.99 million, reflecting a year-over-year increase of 47.3% [1] - EPS for the same period was $0.96, up from $0.78 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $93.2 million by 2.99% [1] - EPS also surpassed the consensus estimate of $0.90 by 7.06% [1] Key Metrics - Efficiency ratio was 48.6%, better than the average estimate of 51.4% from two analysts [4] - Net Interest Margin stood at 4.1%, matching the average estimate [4] - Net charge-offs to average loans were 0%, compared to the average estimate of 0.1% [4] - Total Average Interest Earning Assets reached $7.74 billion, exceeding the average estimate of $7.61 billion [4] - Total Non-interest Income was $17.31 million, slightly above the estimated $17.12 million [4] - Net interest income (FTE) was $80.26 million, higher than the average estimate of $77.7 million [4] - Service charges on deposit accounts totaled $3.96 million, compared to the average estimate of $3.93 million [4] - Net Gains on Sales of Loan were $1.11 million, exceeding the average estimate of $0.95 million [4] Stock Performance - Shares of German American Bancorp returned +0.3% over the past month, compared to a +0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

分组1 - German American Bancorp (GABC) reported quarterly earnings of $0.96 per share, exceeding the Zacks Consensus Estimate of $0.90 per share, and up from $0.78 per share a year ago, representing an earnings surprise of +7.06% [1] - The company achieved revenues of $95.99 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.99%, and compared to year-ago revenues of $65.15 million [2] - The stock has gained approximately 2.7% since the beginning of the year, outperforming the S&P 500's gain of 1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.87 on revenues of $91.95 million, and for the current fiscal year, it is $3.64 on revenues of $379.2 million [7] - The Zacks Industry Rank for Banks - Midwest is currently in the bottom 38% of over 250 Zacks industries, indicating potential challenges for performance compared to higher-ranked industries [8]

Financial Performance - Record net income for Q4 2025 was $35.7 million, or $0.95 per share, reflecting a 1% increase from Q3 2025[3] - Annual net income for 2025 was $112.6 million, or $3.06 per share, representing an 8% year-over-year increase[3] - Adjusted net income for Q4 2025 was $35.9 million, or $0.96 per share, a 4.4% increase from Q3 2025[4] - Net income for the year ended December 31, 2025, totaled $112,635,000, or $3.06 per share, an increase of approximately 8% from $83,811,000, or $2.83 per share, for the year ended December 31, 2024[25] - Net income for the quarter ended December 31, 2025 was $35,683,000, or $0.95 per share, a 22% increase on a per share basis compared to the fourth quarter of 2024[51] - Reported net income for Q4 2025 was $35,683, compared to $35,074 in Q3 2025 and $23,211 in Q4 2024, reflecting a year-over-year increase of 54%[94] - Adjusted net income for Q4 2025 was $35,895, up from $34,444 in Q3 2025 and $23,419 in Q4 2024, indicating a 53% increase year-over-year[94] Asset and Loan Growth - Total assets as of December 31, 2025, were $8.389 billion, an increase of $2.093 billion compared to December 31, 2024, largely due to the Heartland acquisition[11] - Total loans increased by $96.8 million, or 7% on an annualized basis, during Q4 2025[12] - The Heartland acquisition added approximately $1.94 billion in total assets and $1.73 billion in total deposits[10] - Average total loans increased to $5,828,461,000 for the three months ended December 31, 2025, from $4,094,333,000 in the same period of 2024, a 42% increase[86] Income and Revenue - Net interest income for the year ended December 31, 2025, totaled $294,132,000, an increase of $103,541,000, or 54%, compared to $190,591,000 for the year ended December 31, 2024[30] - Non-interest income increased by $4,652,000, or 7%, during the year ended December 31, 2025, compared to the same period in 2024, largely due to the Heartland acquisition[35] - Total non-interest income for the year ended December 31, 2025, was $67,312,000, up from $62,660,000 in 2024, indicating an 8% growth[84] - Total adjusted revenue for the year ended 2025 was $366,189, up from $250,776 in 2024, reflecting a 46% increase[96] Expenses and Efficiency - Non-interest expense totaled $201,949,000 for the year ended December 31, 2025, an increase of $55,572,000, or 38%, compared to the same period in 2024[43] - Adjusted non-interest expense for the year ended December 31, 2025 was $194,953,000, an increase from $139,777,000 in 2024, representing a 39.5% increase[45] - The efficiency ratio improved to 48.55% for the three months ended December 31, 2025, compared to 53.38% in the same period of 2024, showing enhanced operational efficiency[86] Credit Quality - Non-performing assets totaled $29.5 million at December 31, 2025, representing 0.35% of total assets[18] - The allowance for credit losses was $77.7 million, representing 1.32% of period-end loans[15] - The provision for credit losses for the year ended December 31, 2025, was $19,425,000, significantly higher than $2,775,000 in 2024, reflecting increased risk management measures[84] - Non-performing loans to period end loans ratio was 0.50% as of December 31, 2025, compared to 0.27% in 2024, indicating a slight deterioration in asset quality[86] Dividends and Shareholder Value - The company declared a 7% increase in its quarterly cash dividend, marking the 14th consecutive year of dividend increases[8] - The tangible book value per share increased to $20.08 as of December 31, 2025, up from $18.89 in Q3 2025 and $17.93 in Q4 2024[82] - Basic earnings per share for the year ended December 31, 2025, was $3.06, an increase from $2.83 in 2024, representing an 8% growth[84] - Earnings per share (EPS) as reported for Q4 2025 was $0.95, compared to $0.94 in Q3 2025 and $0.78 in Q4 2024, representing a 22% increase year-over-year[94] - Adjusted EPS for Q4 2025 was $0.96, up from $0.92 in Q3 2025 and $0.79 in Q4 2024, marking a 22% increase year-over-year[94]

Core Insights - German American Bancorp reported record earnings for Q4 2025 and the full year, with a net income of $35.7 million for the quarter and $112.6 million for the year, reflecting increases of approximately 1% and 8% year-over-year respectively [2][24]. Financial Performance - For Q4 2025, net income was $35.7 million, or $0.95 per share, up from $35.1 million, or $0.94 per share in Q3 2025 [2][49]. - The annual net income for 2025 was $112.6 million, or $3.06 per share, compared to $83.8 million, or $2.83 per share in 2024, marking an increase of $28.8 million [2][24]. - Adjusted net income for Q4 2025 was $35.9 million, or $0.96 per share, reflecting a 4.4% increase from Q3 2025 [3][50]. - The adjusted net income for the year was $129.7 million, or $3.52 per share, a 24% increase from the previous year [3][26]. Profitability Metrics - The return on average assets (ROAA) for Q4 2025 was 1.67%, while the return on average tangible common equity (ROATCE) was 19.5% [4]. - The net interest margin for Q4 2025 was robust at 4.13% [6][55]. Balance Sheet Highlights - Total assets as of December 31, 2025, were $8.389 billion, a decrease of $12.5 million from Q3 2025 but an increase of $2.093 billion from Q4 2024, largely due to the Heartland acquisition [9]. - Total loans increased by $96.8 million, or 7% annualized, compared to Q3 2025, and by $1.751 billion compared to Q4 2024 [10][12]. - The loan portfolio composition remained stable, with commercial real estate loans making up 53% of the portfolio [13]. Acquisition Impact - The acquisition of Heartland BancCorp added approximately $1.94 billion in assets, $1.58 billion in loans, and $1.73 billion in deposits to the company [8]. - The allowance for credit losses increased to $77.7 million, representing 1.32% of total loans [11][14]. Dividend Announcement - The company announced a 7% increase in its quarterly cash dividend to $0.31 per share, marking the 14th consecutive year of dividend increases [1][11]. Non-Interest Income - Non-interest income for the year increased by $4.7 million, or 7%, driven by the Heartland acquisition and improved fee revenue sources [33]. - Wealth management fees rose by 17% to $16.8 million, and service charges on deposit accounts increased by 19% to $15.1 million [34][35]. Operating Expenses - Non-interest expenses totaled $201.9 million for the year, an increase of 38% compared to 2024, primarily due to Heartland's operating costs [40]. - Salaries and employee benefits increased by 31% to $107.7 million, reflecting the addition of Heartland's workforce [43][44].

Core Insights - German American Bank has been recognized as one of America's Best Regional Banks for 2026 by Newsweek and Plant-A-Insights Group [1] - The bank received accolades as a Best Regional Bank in the states of Indiana, Kentucky, and Ohio [1] - The recognition was based on a large-scale study analyzing over 8,800 institutions [1]

Financial Performance - Net income for the three months ended September 30, 2025, was $35.07 million, a 66.7% increase compared to $21.05 million for the same period in 2024[18]. - Basic earnings per share for the three months ended September 30, 2025, were $0.94, up from $0.71 in the same period of 2024, reflecting a 32.4% increase[18]. - Comprehensive income for the nine months ended September 30, 2025, was $115,036,000, up from $102,621,000 in 2024, reflecting a 12% growth[24]. - For the three months ended September 30, 2025, net income was $35,074, leading to a basic and diluted earnings per share of $0.94, compared to $21,048 and $0.71 for the same period in 2024[42]. - For the nine months ended September 30, 2025, net income was $76,952, resulting in a basic and diluted earnings per share of $2.10, compared to $60,600 and $2.04 for the same period in 2024[44]. Asset Growth - Total assets increased to $8.40 billion as of September 30, 2025, up from $6.30 billion at December 31, 2024, representing a 33.5% growth[15]. - Total deposits rose to $7.01 billion as of September 30, 2025, compared to $5.33 billion at December 31, 2024, marking a 31.5% increase[15]. - As of September 30, 2025, total loans net amount to $5,702,448, an increase from $4,080,466 as of December 31, 2024, representing a growth of approximately 39.7%[60]. - Segment assets as of September 30, 2025, totaled $8,401,248,000, compared to $6,295,910,000 at the end of 2024, representing an increase of approximately 33%[117]. Income and Expenses - Total non-interest expense for the three months ended September 30, 2025, was $49.70 million, up from $36.13 million in the same period of 2024, indicating a 37.5% increase[18]. - Salaries and employee benefits increased to $25.44 million for the three months ended September 30, 2025, compared to $19.72 million in the same period of 2024, a rise of 29.2%[18]. - Salaries and employee benefits for the nine months ended September 30, 2025, amounted to $80,122,000, compared to $61,853,000 for the same period in 2024, which is an increase of about 29%[117]. Credit Losses - Provision for credit losses increased to $17.20 million for the nine months ended September 30, 2025, compared to $2.15 million for the same period in 2024[21]. - The allowance for credit losses increased to $76,057 as of September 30, 2025, from $44,436 as of December 31, 2024, reflecting a rise of approximately 71.3%[60]. - Loans charged-off during the three months ended September 30, 2025, totaled $1,126,000, which is a significant increase from $619,000 in the same period of 2024, representing an increase of about 82%[65]. - The provision for credit loss expense for the three months ended September 30, 2025, was $700,000, compared to a provision of $625,000 for the same period in 2024, indicating an increase of approximately 12% year-over-year[65]. Securities and Investments - The total fair value of securities available-for-sale as of September 30, 2025, was $1,618,017, with an amortized cost of $1,848,461, reflecting unrealized losses of $236,243[45]. - The company reported $1,125,013 in total securities with unrealized losses as of September 30, 2025, compared to $1,356,156 as of December 31, 2024, indicating a decrease of about 17%[52]. - The company sold approximately $204.9 million in securities acquired from the Heartland acquisition during the first quarter of 2025, with no gain or loss incurred on the sale[48]. Acquisition and Goodwill - On February 1, 2025, the Company acquired Heartland BancCorp, which had total assets of approximately $1.94 billion, total loans of approximately $1.58 billion, and total deposits of approximately $1.73 billion at the time of acquisition[173]. - The total consideration transferred for the acquisition was $343.109 million, which included $23.102 million in cash and $320.007 million in equity instruments[176]. - The acquisition resulted in the recognition of $196.212 million in goodwill, primarily due to synergies and cost savings from combining operations, and $40.065 million in intangible assets related to core deposits[174]. Non-Interest Income - Non-interest income for the three months ended September 30, 2025, totaled $18.43 million, a 33.0% increase from $13.80 million in the same period of 2024[18]. - Wealth management fees for the three months ended September 30, 2025, were $4,288,000, compared to $3,580,000 in the same period of 2024, indicating a growth of about 20%[114]. - Interchange fee income for the three months ended September 30, 2025, was $5,087 thousand, an increase of 15.9% from $4,390 thousand in the same period of 2024[158]. Cash Flow and Liquidity - The company reported a net cash from operating activities of $116,647,000 for the nine months ended September 30, 2025, compared to $67,071,000 in 2024, marking a 74% increase[31]. - Cash and cash equivalents at the end of the period were $255,648,000, up from $195,555,000 at the end of September 2024, a 31% increase[31]. - Cash dividends paid were $32,454,000 for the nine months ended September 30, 2025, compared to $23,882,000 in 2024, representing a 36% increase[31]. Stock and Shareholder Information - The company reported a total of 37,493,333 shares issued and outstanding as of September 30, 2025, compared to 29,677,093 shares at December 31, 2024[15]. - The company has not repurchased any shares under the stock repurchase plan approved on January 31, 2022, which allows for the repurchase of up to 1,000,000 shares[121]. - The total unvested shares of restricted stock as of September 30, 2025, were 186,982, up from 134,553 as of December 31, 2024, indicating a 39% increase[126].

Core Insights - German American Bancorp (GABC) reported a revenue of $94.15 million for the quarter ended September 2025, reflecting a year-over-year increase of 50.9% [1] - The earnings per share (EPS) for the quarter was $0.92, up from $0.71 in the same quarter last year, indicating a positive growth trend [1] - The reported revenue exceeded the Zacks Consensus Estimate by 3.35%, while the EPS surpassed the consensus estimate by 6.98% [1] Financial Metrics - The efficiency ratio was reported at 49.3%, better than the three-analyst average estimate of 50.9% [4] - The net interest margin stood at 4.1%, compared to the average estimate of 3.9% from three analysts [4] - Net charge-offs to average loans were at 0.1%, matching the average estimate from two analysts [4] - Total average interest-earning assets were $7.54 billion, slightly below the estimated $7.67 billion [4] - Net gains on sales of loans were $1.19 million, exceeding the average estimate of $1.07 million [4] - Total non-interest income reached $18.43 million, surpassing the average estimate of $17.01 million [4] - Net interest income (FTE) was reported at $77 million, above the average estimate of $75.13 million [4] - Service charges on deposit accounts were $3.93 million, slightly above the average estimate of $3.89 million [4] - Overall net interest income was $75.73 million, compared to the average estimate of $74.09 million [4] Stock Performance - Shares of German American Bancorp have returned -1.7% over the past month, while the Zacks S&P 500 composite has increased by 2.5% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - German American Bancorp (GABC) reported quarterly earnings of $0.92 per share, exceeding the Zacks Consensus Estimate of $0.86 per share, and up from $0.71 per share a year ago, representing an earnings surprise of +6.98% [1] - The company posted revenues of $94.15 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 3.35%, compared to year-ago revenues of $62.4 million [2] - Over the last four quarters, German American Bancorp has consistently surpassed consensus EPS and revenue estimates [2] 分组2 - The stock has underperformed the market, losing about 2.3% since the beginning of the year, while the S&P 500 gained 15.5% [3] - The current consensus EPS estimate for the coming quarter is $0.88 on revenues of $92.25 million, and for the current fiscal year, it is $3.38 on revenues of $354.6 million [7] - The Zacks Industry Rank for Banks - Midwest is currently in the top 26% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Record earnings of $35.1 million, or $0.94 per share, for Q3 2025, representing a 12% increase from Q2 2025 and a 32% increase from Q3 2024[1] - Net income for Q3 2025 was $35,074,000, or $0.94 per share, a 12% increase from Q2 2025 and a 32% increase from Q3 2024[24] - Adjusted net income for Q3 2025 was $34,444,000, or $0.92 per share, compared to $32,058,000, or $0.86 per share in Q2 2025, and $21,722,000, or $0.73 per share in Q3 2024[25] - The net income for the three months ended September 30, 2025, was $35,074 thousand, an increase from $31,361 thousand in the previous quarter and $21,048 thousand in the same quarter last year, representing a year-over-year growth of 66.7%[61] - Basic earnings per share for the three months ended September 30, 2025, was $0.94, compared to $0.84 in the previous quarter and $0.71 in the same quarter last year, indicating a year-over-year increase of 32.4%[61] Revenue and Income Growth - Non-interest income rose by $1.7 million, or 10%, driven by a 3% increase in wealth management and a 6% increase in deposit fees[5] - Non-interest income for Q3 2025 totaled $18,429,000, a 10% increase from Q2 2025 and a 34% increase from Q3 2024[34] - Total interest income for the three months ended September 30, 2025, was $108,097 thousand, up from $106,435 thousand in the previous quarter, and $74,653 thousand in the same quarter last year, representing a year-over-year increase of 44.8%[61] - Net interest income for Q3 2025 was $75,725,000, a 4% increase from Q2 2025 and a 56% increase from Q3 2024[28] - Net Interest Income (FTE) for Q3 2025 was $76,998,000, an increase from $49,745,000 in Q3 2024, marking a 54.7% year-over-year growth[75] Asset and Deposit Growth - Total assets reached $8.401 billion, an increase of $121.1 million from Q2 2025 and $2.140 billion from Q3 2024, largely due to the Heartland acquisition[10] - Total deposits increased by 3.4% on an annualized basis, with non-interest bearing demand deposits rising by 9%, representing over 28% of total deposits[4] - Total deposits reached $7,014,502,000 as of September 30, 2025, compared to $6,954,686,000 in Q2 2025 and $5,271,279,000 in Q3 2024[59] Efficiency and Profitability - The efficiency ratio improved to 49.26%, indicating enhanced profitability[6] - The efficiency ratio improved to 49.26% for the three months ended September 30, 2025, compared to 51.25% in the previous quarter and 56.15% in the same quarter last year, indicating enhanced operational efficiency[63] Loan Portfolio and Credit Quality - The loan portfolio increased by $39.3 million, or 3% on an annualized basis, with agricultural loans up by 10% and retail loans up by 7%[11] - Non-performing assets totaled $23.7 million, representing 0.28% of total assets, an increase from $9.7 million or 0.15% a year earlier[17] - The allowance for credit losses was $76.1 million, representing 1.32% of period-end loans, consistent with the previous quarter[14] - The provision for credit losses in Q3 2025 was $700,000, down from $1,200,000 in Q2 2025 and up from $625,000 in Q3 2024[33] Acquisition Impact - The Heartland acquisition added approximately $1.615 billion in deposits and $1.58 billion in loans to the company[9][12] - The Heartland acquisition contributed significantly to the increases in net interest income, non-interest income, and overall performance metrics[29] Expense Management - Non-interest expense for Q3 2025 was $49,700,000, a slight increase of less than 1% from Q2 2025 and a 38% increase from Q3 2024[43] - Total non-interest expense for Q3 2025 was $49,700,000, compared to $49,517,000 in Q2 2025 and $36,126,000 in Q3 2024[46] - Salaries and employee benefits decreased by $1,194,000, or 4%, in Q3 2025 compared to Q2 2025, but increased by $5,726,000, or 29%, compared to Q3 2024[47] - Other operating expenses increased by $854,000, or 12%, in Q3 2025 compared to Q2 2025, and rose by $2,513,000, or 48%, compared to Q3 2024[51] Operational Metrics - The annualized return on average assets for the three months ended September 30, 2025, was 1.68%, up from 1.49% in the previous quarter and 1.35% in the same quarter last year[63] - Average total loans for the three months ended September 30, 2025, were $5,766,875 thousand, compared to $5,678,929 thousand in the previous quarter and $4,052,673 thousand in the same quarter last year, reflecting a year-over-year increase of 42.4%[63] Other Financial Highlights - The tangible book value per share increased to $18.89 in Q3 2025 from $17.40 in Q2 2025, while it was $18.90 in Q3 2024[59] - The company operates 94 banking offices across Indiana, Kentucky, and Ohio, with a focus on expanding its Heartland Bank brand in the Greater Cincinnati area[52] - The company reported a gain on debt extinguishment of $975,000 in Q3 2025, contributing positively to the financial results[73]