[First Quarter 2024 Earnings Highlights](index=1&type=section&id=First%20Quarter%202024%20Earnings) German American Bancorp's Q1 2024 performance saw a decline in net income due to margin compression, despite strong loan growth and expense control [Performance Summary](index=1&type=section&id=1.1%20Performance%20Summary) Q1 2024 net income of **$19.0 million** ($0.64/share) declined due to net interest margin compression, despite strong loan growth and controlled expenses Quarterly Earnings Comparison | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Net Income (in millions) | $19.0 | $21.5 | $20.8 | | Earnings Per Share (EPS) ($) | $0.64 | $0.73 | $0.71 | - Positive performance factors in Q1 2024 included **strong commercial real estate and retail loan growth**, **growth in non-public fund deposits**, **solid credit metrics**, and **controlled operating expenses**[2](index=2&type=chunk) - Net interest margin compressed by **8 basis points** to **3.35%** on a linked-quarter basis, as the **12 basis point increase** in funding costs outpaced the **4 basis point increase** in earning asset yield[3](index=3&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.27 per share**, an **8% increase** over the 2023 rate[6](index=6&type=chunk) [Financial Condition](index=2&type=section&id=Balance%20Sheet%20Highlights) The company's financial position reflects stable assets, diversified loan growth, strong asset quality, and robust capital adequacy [Assets](index=2&type=section&id=2.1%20Assets) Total assets were **$6.112 billion** at March 31, 2024, slightly down linked-quarter but up year-over-year due to loan growth Total Assets Comparison | Date | Total Assets (in billions) | | :--- | :--- | | March 31, 2024 | $6.112 | | December 31, 2023 | $6.152 | | March 31, 2023 | $5.997 | - The available-for-sale securities portfolio declined as cash flows were used to fund loan growth, with approximately **$190.0 million** in projected cash flows over the next twelve months[9](index=9&type=chunk) [Loans](index=2&type=section&id=2.2%20Loans) Total loans remained stable linked-quarter at **$3.98 billion** but grew **6%** year-over-year, with diversified portfolio composition End of Period Loan Balances (in thousands) | Loan Type | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :--- | :--- | :--- | :--- | | Commercial & Industrial | $646,162 | $661,529 | $667,306 | | Commercial Real Estate | $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 | $361,236 | $362,844 | $350,338 | | **Total Loans** | **$3,978,919** | **$3,977,900** | **$3,772,866** | - The loan portfolio is heavily concentrated in commercial real estate (**54%**), with limited office real estate exposure at approximately **4%** of the total portfolio[11](index=11&type=chunk) [Asset Quality](index=3&type=section&id=2.3%20Asset%20Quality) Asset quality remained strong with low non-performing assets (**0.16%**) and stable allowance for credit losses (**1.10%** of loans) Non-performing Assets (in thousands) | Metric | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :--- | :--- | :--- | :--- | | Total Non-Performing Loans | $9,983 | $9,191 | $14,593 | | Total Non-Performing Assets | $9,983 | $9,191 | $14,593 | Key Asset Quality Ratios | Ratio | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :--- | :--- | :--- | :--- | | NPA to Total Assets (%) | 0.16% | 0.15% | 0.24% | | NPL to Total Loans (%) | 0.25% | 0.23% | 0.39% | | Allowance for Credit Losses to Loans (%) | 1.10% | 1.10% | 1.18% | [Deposits](index=4&type=section&id=2.4%20Deposits) Total deposits declined linked-quarter by **$33.6 million** due to seasonal outflows, but grew year-over-year by **$64.5 million** End of Period Deposit Balances (in thousands) | Deposit Type | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :--- | :--- | :--- | :--- | | Non-interest-bearing Demand | $1,463,933 | $1,493,160 | $1,601,206 | | IB Demand, Savings, MMDA | $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** | - The linked-quarter decline in deposits was largely due to seasonal outflows of public entity funds, with non-interest bearing deposits stable at **28%** of total deposits[15](index=15&type=chunk) [Capital Adequacy](index=4&type=section&id=2.5%20Capital%20Adequacy) The company and its subsidiary maintained capital levels well in excess of minimum regulatory requirements for well-capitalized status Capital Ratios | Ratio (Consolidated) | 3/31/2024 | 12/31/2023 | 3/31/2023 | | :--- | :--- | :--- | :--- | | Total Capital (to RWA) (%) | 16.57% | 16.50% | 15.89% | | Tier 1 (Core) Capital (to RWA) (%) | 14.97% | 14.97% | 14.32% | | Common Tier 1 (CET 1) (to RWA) (%) | 14.27% | 14.26% | 13.60% | | Tier 1 Capital (to Avg Assets) (%) | 12.01% | 11.75% | 11.08% | [Results of Operations](index=5&type=section&id=Results%20of%20Operations%20Highlights) The company's Q1 2024 operations saw a decline in net income driven by net interest margin compression, partially offset by non-interest income growth [Net Income](index=5&type=section&id=3.1%20Net%20Income) Q1 2024 net income was **$19.0 million** ($0.64/share), representing a decline from both prior quarters Quarterly Net Income Comparison | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Net Income (in thousands) | $19,022 | $21,507 | $20,807 | | Diluted EPS ($) | $0.64 | $0.73 | $0.71 | [Net Interest Income and Margin](index=5&type=section&id=3.2%20Net%20Interest%20Income%20and%20Margin) Net interest income decreased to **$45.0 million** in Q1 2024, with net interest margin compressing to **3.35%** due to higher funding costs Net Interest Margin and Income (Tax-equivalent) | Metric | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Net Interest Income (in millions) | $46.6 | $47.2 | $50.7 | | Net Interest Margin (%) | 3.35% | 3.43% | 3.69% | | Cost of Funds (%) | 1.67% | 1.55% | 0.84% | - The decline in net interest margin was largely driven by an increase in the cost of funds, which accelerated in Q1 2024 due to highly competitive deposit pricing and customers seeking higher yields[20](index=20&type=chunk)[21](index=21&type=chunk) - Accretion of discounts on acquired loans contributed approximately **3 basis points** to the net interest margin in Q1 2024[22](index=22&type=chunk) [Provision for Credit Losses](index=6&type=section&id=3.3%20Provision%20for%20Credit%20Losses) A provision for credit losses of **$900,000** was recorded in Q1 2024, with net charge-offs stable at **9 basis points** - The company recorded a provision for credit losses of **$900,000** in Q1 2024, compared with no provision in Q4 2023 and **$1,100,000** in Q1 2023[23](index=23&type=chunk) - Net charge-offs were **$911,000**, or an annualized **9 basis points** of average loans, during Q1 2024, comparable to prior quarters[24](index=24&type=chunk) [Non-interest Income](index=6&type=section&id=3.4%20Non-interest%20Income) Non-interest income increased to **$15.8 million** in Q1 2024, driven by wealth management fees and loan sales gains Non-interest Income Breakdown (in thousands) | Income Source | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Wealth Management Fees | $3,366 | $3,198 | $2,644 | | Insurance Revenues | $2,878 | $2,266 | $3,135 | | Interchange Fee Income | $4,087 | $4,371 | $4,199 | | Net Gains on Sales of Loans | $751 | $532 | $587 | | **Total Non-interest Income** | **$15,822** | **$15,594** | **$14,967** | - Wealth management fees increased **27%** YoY, largely due to increased assets under management[27](index=27&type=chunk) - Insurance revenues increased **27%** from Q4 2023 due to seasonal contingency revenue (**$391,000**), but declined **8%** YoY due to lower contingency revenue compared to Q1 2023 (**$945,000**)[28](index=28&type=chunk) [Non-interest Expense](index=8&type=section&id=3.5%20Non-interest%20Expense) Non-interest expense totaled **$36.7 million** in Q1 2024, increasing linked-quarter but decreasing year-over-year Non-interest Expense Breakdown (in thousands) | Expense Category | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Salaries and Employee Benefits | $21,178 | $20,948 | $21,846 | | Occupancy, Furniture and Equipment | $3,804 | $3,513 | $3,820 | | Professional Fees | $1,595 | $1,170 | $1,562 | | **Total Non-interest Expense** | **$36,738** | **$35,734** | **$37,616** | - Salaries and benefits declined **3%** YoY due to a lower number of full-time equivalent employees and lower incentive compensation[33](index=33&type=chunk) - Professional fees increased **36%** linked-quarter, attributable to costs for year-end financial reporting, annual meeting preparations, and talent recruiting[35](index=35&type=chunk) [Company Overview and Forward-Looking Statements](index=8&type=section&id=About%20German%20American%20and%20Forward-Looking%20Statements) This section provides an overview of German American Bancorp and important cautionary notes regarding forward-looking statements [About German American](index=8&type=section&id=4.1%20About%20German%20American) German American Bancorp, Inc. is a financial holding company operating **74** banking offices and various financial subsidiaries - German American Bancorp, Inc. (GABC) operates **74** banking offices in **20** southern Indiana counties and **14** Kentucky counties through its subsidiary, German American Bank[36](index=36&type=chunk) - The company also owns German American Investment Services, Inc. (an investment brokerage) and German American Insurance, Inc. (a property and casualty insurance agency)[36](index=36&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=9&type=section&id=4.2%20Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section cautions that forward-looking statements are subject to risks, including interest rate changes, economic conditions, and cybersecurity threats - The press release contains forward-looking statements subject to risks and uncertainties as defined by the Private Securities Litigation Reform Act of 1995[37](index=37&type=chunk) - Key risk factors that could affect results include changes in interest rates, unfavorable economic conditions, soundness of other financial institutions, changes in liquidity, and potential cyber-attacks[37](index=37&type=chunk) [Consolidated Financial Statements](index=11&type=section&id=Consolidated%20Financial%20Statements) This section presents the company's consolidated balance sheets, statements of income, and key performance and asset quality ratios [Consolidated Balance Sheets](index=11&type=section&id=5.1%20Consolidated%20Balance%20Sheets) The consolidated balance sheet details the company's financial position, including assets, liabilities, and equity, as of March 31, 2024 Consolidated Balance Sheets (unaudited, in thousands) | | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--- | :--- | :--- | :--- | | **TOTAL ASSETS** | **$6,111,929** | **$6,152,198** | **$5,996,919** | | Net Loans | $3,928,156 | $3,927,317 | $3,724,557 | | Total Deposits | $5,219,347 | $5,252,963 | $5,154,895 | | **TOTAL LIABILITIES** | **$5,456,675** | **$5,488,640** | **$5,391,588** | | **SHAREHOLDERS' EQUITY** | **$655,254** | **$663,558** | **$605,331** | [Consolidated Statements of Income](index=12&type=section&id=5.2%20Consolidated%20Statements%20of%20Income) The consolidated statement of income presents the company's revenues and expenses, resulting in a Q1 2024 net income of **$19.0 million** Consolidated Statements of Income (unaudited, in thousands) | | Three Months Ended | | | | :--- | :--- | :--- | :--- | | | March 31, 2024 | December 31, 2023 | March 31, 2023 | | NET INTEREST INCOME | $44,994 | $45,607 | $49,009 | | Provision for Credit Losses | $900 | $— | $1,100 | | TOTAL NON-INTEREST INCOME | $15,822 | $15,594 | $14,967 | | TOTAL NON-INTEREST EXPENSE | $36,738 | $35,734 | $37,616 | | **NET INCOME** | **$19,022** | **$21,507** | **$20,807** | | **DILUTED EARNINGS PER SHARE** | **$0.64** | **$0.73** | **$0.71** | [Key Performance and Asset Quality Ratios](index=13&type=section&id=5.3%20Key%20Performance%20and%20Asset%20Quality%20Ratios) Key performance ratios, including Return on Average Assets (**1.25%**), declined, while asset quality ratios remained strong and stable Selected Performance and Asset Quality Ratios | Ratio | Q1 2024 | Q4 2023 | Q1 2023 | | :--- | :--- | :--- | :--- | | Annualized Return on Average Assets (%) | 1.25% | 1.43% | 1.37% | | Annualized Return on Average Equity (%) | 11.58% | 15.45% | 14.39% | | Net Interest Margin (%) | 3.35% | 3.43% | 3.69% | | Efficiency Ratio (%) | 57.92% | 55.87% | 56.08% | | Annualized Net Charge-offs to Avg Loans (%) | 0.09% | 0.09% | 0.10% | | NPA to Period End Assets (%) | 0.16% | 0.15% | 0.24% |

JASPER, Ind., April 29, 2024 (GLOBE NEWSWIRE) -- 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, s ...

Wall Street analysts forecast that German American Bancorp (GABC) will report quarterly earnings of $0.64 per share in its upcoming release, pointing to a year-over-year decline of 9.9%. It is anticipated that revenues will amount to $61.05 million, exhibiting a decline of 4.6% compared to the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their in ...

German American Bancorp (GABC) shares rallied 6% in the last trading session to close at $33. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 3.3% loss over the past four weeks.Almost a week after getting hurt by the industry-wide concern related to commercial real estate (CRE) loans, shares of German American Bancorp are showing signs of improvement. While CRE loans constitute almost 50% of the company’s tot ...

JASPER, Ind., March 04, 2024 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (NASDAQ:GABC) and its banking subsidiary, German American Bank, announces that Scott Powell has been appointed Executive Vice President, Chief Credit Officer, effective April 1, 2024. Powell will succeed current Executive Vice President and Chief Credit Officer, Keith A. Leinenbach, who will be retiring. Leinenbach will retire after 24 years with the organization and over 40 years of broad-based banking industry experience. Keith ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 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 incorporation or organization) (I.R.S. Employer Identification No.) 711 Main Street, Box 810, Jasper, Indiana 47546 (Address of Prin ...

[Glossary of Terms and Acronyms](index=4&type=section&id=Glossary%20of%20Terms%20and%20Acronyms) Provides definitions for key terms and abbreviations used throughout the report [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Presents the company's unaudited consolidated financial statements and management's discussion and analysis of financial condition and operating results [Item 1. Unaudited Financial Statements](index=6&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) This chapter presents German American Bancorp, Inc.'s unaudited consolidated financial statements as of September 30, 2023, covering balance sheets, income, comprehensive income, equity changes, cash flows, and detailed notes on key accounting areas [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Presents the company's financial position, detailing assets, liabilities, and shareholders' equity as of September 30, 2023, and December 31, 2022 Consolidated Balance Sheet Key Data (As of September 30, 2023, and December 31, 2022) | Metric | September 30, 2023 (Thousands of USD) | December 31, 2022 (Thousands of USD) | | :----------------------------------- | :------------------------------------ | :----------------------------------- | | **Assets** | | | | Cash and cash equivalents | 132,419 | 119,079 | | Securities available for sale, at fair value | 1,476,956 | 1,761,669 | | Loans, net | 3,842,904 | 3,740,766 | | Total assets | 6,005,666 | 6,155,991 | | **Liabilities** | | | | Total deposits | 5,135,871 | 5,350,051 | | FHLB advances and other borrowings | 286,193 | 203,806 | | Total liabilities | 5,467,274 | 5,597,598 | | **Shareholders' Equity** | | | | Total shareholders' equity | 538,392 | 558,393 | [Consolidated Statements of Income – Three Months Ended September 30, 2023 and 2022](index=8&type=section&id=Consolidated%20Statements%20of%20Income%20%E2%80%93%20Three%20Months%20Ended%20September%2030,%202023%20and%202022) Details the company's financial performance for the three months ended September 30, 2023, and 2022, including interest income, expenses, and net income Consolidated Statements of Income Key Data (Three Months Ended September 30, 2023, and 2022) | Metric (Thousands of USD) | September 30, 2023 | September 30, 2022 | | :--------------------------------- | :----------------- | :----------------- | | Total interest income | 65,642 | 56,524 | | Total interest expense | 18,083 | 4,826 | | Net interest income | 47,559 | 51,698 | | Provision for credit losses | 900 | 350 | | Net interest income (after provision for credit losses) | 46,659 | 51,348 | | Total non-interest income | 14,804 | 14,097 | | Total non-interest expense | 35,421 | 34,716 | | Income tax expense | 4,591 | 6,133 | | Net income | 21,451 | 24,596 | | Basic earnings per share | 0.73 | 0.83 | | Diluted earnings per share | 0.73 | 0.83 | [Consolidated Statements of Income – Nine Months Ended September 30, 2023 and 2022](index=10&type=section&id=Consolidated%20Statements%20of%20Income%20%E2%80%93%20Nine%20Months%20Ended%20September%2030,%202023%20and%202022) Details the company's financial performance for the nine months ended September 30, 2023, and 2022, including interest income, expenses, and net income Consolidated Statements of Income Key Data (Nine Months Ended September 30, 2023, and 2022) | Metric (Thousands of USD) | September 30, 2023 | September 30, 2022 | | :--------------------------------- | :----------------- | :----------------- | | Total interest income | 189,645 | 158,065 | | Total interest expense | 44,819 | 9,862 | | Net interest income | 144,826 | 148,203 | | Provision for credit losses | 2,550 | 5,850 | | Net interest income (after provision for credit losses) | 142,276 | 142,353 | | Total non-interest income | 44,667 | 45,465 | | Total non-interest expense | 108,763 | 118,577 | | Income tax expense | 13,799 | 11,831 | | Net income | 64,381 | 57,410 | | Basic earnings per share | 2.18 | 1.95 | | Diluted earnings per share | 2.18 | 1.95 | [Consolidated Statements of Comprehensive Income (Loss)](index=12&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Presents the company's comprehensive income (loss) for the three and nine months ended September 30, 2023, and 2022, including net income and other comprehensive income (loss) Consolidated Statements of Comprehensive Income (Loss) Key Data (Three and Nine Months Ended September 30, 2023, and 2022) | Metric (Thousands of USD) | Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 | | :--------------------------------- | :------------------------------------ | :------------------------------------ | :----------------------------------- | :----------------------------------- | | Net income | 21,451 | 24,596 | 64,381 | 57,410 | | Total other comprehensive income (loss) | (78,761) | (97,963) | (64,175) | (324,542) | | Total comprehensive income (loss) | (57,310) | (73,367) | 206 | (267,132) | [Consolidated Statements of Changes in Shareholders' Equity](index=14&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Outlines the changes in the company's shareholders' equity for the period ended September 30, 2023, reflecting net income, other comprehensive income (loss), dividends, and stock awards Changes in Shareholders' Equity (As of September 30, 2023) | Metric (Thousands of USD) | Balance January 1, 2023 | Net Income | Other Comprehensive Income (Loss) | Cash Dividends | Net Restricted Stock Awards | Balance September 30, 2023 | | :------------------------ | :---------------------- | :--------- | :-------------------------------- | :------------- | :-------------------------- | :------------------------- | | Common stock | 29,493 | — | — | — | 82 | 29,575 | | Additional paid-in capital | 387,171 | — | — | — | 1,784 | 388,955 | | Retained earnings | 405,167 | 64,381 | — | (22,073) | — | 447,475 | | Accumulated other comprehensive income (loss) | (263,438) | — | (64,175) | — | — | (327,613) | | **Total Shareholders' Equity** | **558,393** | **64,381** | **(64,175)** | **(22,073)** | **1,866** | **538,392** | [Consolidated Statements of Cash Flows](index=16&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes the company's cash inflows and outflows from operating, investing, and financing activities for the nine months ended September 30, 2023, and 2022 Consolidated Statements of Cash Flows Key Data (Nine Months Ended September 30, 2023, and 2022) | Cash Flow Activity (Thousands of USD) | September 30, 2023 | September 30, 2022 | | :------------------------------------ | :----------------- | :----------------- | | Net cash provided by operating activities | 77,657 | 82,492 | | Net cash provided by investing activities | 89,638 | 84,088 | | Net cash used in financing activities | (153,955) | (190,424) | | Net change in cash and cash equivalents | 13,340 | (23,844) | | Cash and cash equivalents at end of period | 132,419 | 373,046 | [Notes to Consolidated Financial Statements](index=18&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations and disclosures regarding the company's accounting policies, financial instruments, and other significant financial information - The company has ceased originating LIBOR-based loans and plans to convert existing LIBOR-indexed loans primarily to SOFR or other indices[37](index=37&type=chunk) - The company adopted ASU 2022-02 on January 1, 2023, which eliminated the recognition and measurement guidance for troubled debt restructurings and established new criteria for loan modifications to borrowers experiencing financial difficulty, with no material impact on consolidated financial statements[38](index=38&type=chunk) - As of September 30, 2023, available-for-sale securities had an amortized cost of **$1,891,435 thousand**, a fair value of **$1,476,956 thousand**, and total gross unrealized losses of **$414,489 thousand**[47](index=47&type=chunk) - As of September 30, 2023, total loans were **$3,893,573 thousand**, with commercial real estate loans representing the largest portion at **$2,076,962 thousand**[61](index=61&type=chunk) - As of September 30, 2023, the total allowance for credit losses was **$44,646 thousand**, a slight increase from **$44,168 thousand** as of December 31, 2022[62](index=62&type=chunk)[64](index=64&type=chunk) - The company operates in three primary segments: core banking, wealth management services, and insurance business, with core banking being the main revenue source[103](index=103&type=chunk)[104](index=104&type=chunk) - The company's Board of Directors approved a stock repurchase program on January 31, 2022, authorizing the repurchase of up to **1,000,000 shares** of common stock, but no shares have been repurchased to date[111](index=111&type=chunk) - As of September 30, 2023, unrecognized compensation cost related to restricted stock awards and cash equity totaled **$3,805 thousand**[118](index=118&type=chunk) - As of September 30, 2023, the company held **$82 thousand** in Level 3 available-for-sale securities (non-rated state and political subdivision obligations) and **$943 thousand** in Level 3 available-for-sale securities (non-rated MBS/CMO)[125](index=125&type=chunk) - As of September 30, 2023, the company's total lease liabilities were **$8,297 thousand**, comprising **$2,699 thousand** for finance lease liabilities and **$5,598 thousand** for operating lease liabilities[160](index=160&type=chunk)[162](index=162&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=49&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This chapter analyzes German American Bancorp, Inc.'s financial condition and operating results as of September 30, 2023, noting a Q3 net income decrease due to lower earning assets and net interest margin, while year-to-date net income increased due to higher 2022 acquisition costs [MANAGEMENT OVERVIEW](index=49&type=section&id=MANAGEMENT%20OVERVIEW) Provides an executive summary of the company's financial performance, highlighting key trends in net income and earnings per share Net Income and Earnings Per Share (As of September 30, 2023, and 2022) | Metric | Three Months Ended September 30, 2023 | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2023 | Nine Months Ended September 30, 2022 | | :----- | :------------------------------------ | :------------------------------------ | :----------------------------------- | :----------------------------------- | | Net income | $21,451 thousand | $24,596 thousand | $64,381 thousand | $57,410 thousand | | EPS | $0.73 | $0.83 | $2.18 | $1.95 | - Net income for Q3 2023 decreased by **12%** (per share), primarily due to reduced average earning assets and a lower net interest margin[168](index=168&type=chunk) - Net income for the first nine months of 2023 increased by **12%** (per share), mainly because the first nine months of 2022 were significantly impacted by CUB acquisition-related costs[169](index=169&type=chunk) - The company completed the acquisition of CUB on January 1, 2022, issuing approximately **2.9 million** shares of common stock and paying approximately **$50.8 million** in cash[170](index=170&type=chunk) [CRITICAL ACCOUNTING POLICIES AND ESTIMATES](index=49&type=section&id=CRITICAL%20ACCOUNTING%20POLICIES%20AND%20ESTIMATES) Discusses the significant accounting policies and estimates that require management's judgment and can materially affect the financial statements - Critical accounting policies and estimates include the allowance for credit losses, valuation of available-for-sale securities, income tax expense, and valuation of goodwill and other intangible assets[172](index=172&type=chunk)[173](index=173&type=chunk) - The determination of the allowance for credit losses is subjective, involving significant estimates of future cash flows, loan loss rates, economic conditions, and reasonable and supportable forecasts[175](index=175&type=chunk) - As of September 30, 2023, the available-for-sale securities portfolio had total gross unrealized gains of approximately **$10 thousand** and total gross unrealized losses of approximately **$414,489 thousand**[183](index=183&type=chunk) - Goodwill and intangible assets with indefinite useful lives are not amortized but are tested for impairment at least annually, with the company selecting December 31 as its annual impairment testing date[187](index=187&type=chunk) [RESULTS OF OPERATIONS](index=52&type=section&id=RESULTS%20OF%20OPERATIONS) Analyzes the company's operating performance, including net interest income, credit loss provisions, non-interest income, and non-interest expenses - Net interest income (tax-equivalent) for Q3 2023 was **$47,559 thousand**, an **8%** year-over-year decrease, primarily due to reduced average earning assets and a slight decline in net interest margin[191](index=191&type=chunk)[192](index=192&type=chunk) - Net interest income (tax-equivalent) for the first nine months of 2023 was **$144,826 thousand**, a **2%** year-over-year decrease, mainly due to reduced average earning assets, partially offset by improved net interest margin from rising market interest rates[197](index=197&type=chunk) - The provision for credit losses for Q3 2023 was **$900 thousand**, higher than **$350 thousand** in the same period of 2022[199](index=199&type=chunk) - The provision for credit losses for the first nine months of 2023 was **$2,550 thousand**, lower than **$5,850 thousand** in the same period of 2022, which included a **$6,300 thousand** initial CECL increase related to the CUB acquisition[200](index=200&type=chunk) - Total non-interest income for Q3 2023 was **$14,804 thousand**, a **5%** year-over-year increase, driven by growth in wealth management fees and bank card interchange fees[204](index=204&type=chunk) - Total non-interest income for the first nine months of 2023 was **$44,667 thousand**, a **2%** year-over-year decrease, primarily due to lower insurance income and company-owned life insurance income, partially offset by increased wealth management fees and bank card interchange fees[208](index=208&type=chunk)[209](index=209&type=chunk)[210](index=210&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk) - Total non-interest expense for Q3 2023 was **$35,421 thousand**, a **2%** year-over-year increase, mainly due to higher salaries and employee benefits and increased FDIC premiums[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk) - Total non-interest expense for the first nine months of 2023 was **$108,763 thousand**, an **8%** year-over-year decrease, primarily because the same period in 2022 included approximately **$12,276 thousand** in non-recurring acquisition-related expenses[221](index=221&type=chunk) - The company's effective income tax rates for Q3 2023 and the first nine months were **17.6%** and **17.7%**, respectively, lower than the statutory rate due to tax-exempt investment income and tax credits[228](index=228&type=chunk) [FINANCIAL CONDITION](index=60&type=section&id=FINANCIAL%20CONDITION) Evaluates the company's balance sheet, including assets, liabilities, and equity, and discusses changes in key financial components - As of September 30, 2023, total assets were **$6.006 billion**, a decrease of **$150.3 million** from year-end 2022, primarily due to a reduction in the securities portfolio driven by deposit declines, partially offset by loan growth[229](index=229&type=chunk) - As of September 30, 2023, available-for-sale securities decreased by **$284.7 million**, primarily used to offset deposit declines and support loan growth[231](index=231&type=chunk) - As of September 30, 2023, total loans increased by **$104.9 million** (an annualized **4%** growth), driven by commercial real estate and retail loan growth[232](index=232&type=chunk) Loan Portfolio Composition (As of September 30, 2023) | Loan Type | Percentage | | :------------------------- | :--------- | | Commercial real estate loans | 53% | | Commercial and industrial loans | 17% | | Agricultural loans | 10% | - As of September 30, 2023, the total allowance for credit losses was **$44.6 million**, representing **1.15%** of period-end loans, slightly down from **1.17%** at year-end 2022[234](index=234&type=chunk) - As of September 30, 2023, total non-performing assets decreased to **$12.4 million** from **$14.3 million** at year-end 2022, representing **0.21%** of total assets[236](index=236&type=chunk) - As of September 30, 2023, total deposits decreased by **$214.2 million** (**4%**), primarily influenced by competitive deposit pricing and customers seeking higher-yielding opportunities[237](index=237&type=chunk)[239](index=239&type=chunk) - As of September 30, 2023, total borrowings increased by **$82.4 million** (**40%**), utilized to fund loan growth and deposit outflows[241](index=241&type=chunk) - As of September 30, 2023, shareholders' equity decreased by **$20 million** to **$538.4 million**, mainly due to a **$64.2 million** reduction in accumulated other comprehensive income (loss) from the decline in fair value of available-for-sale securities, partially offset by a **$42.3 million** increase in net income[242](index=242&type=chunk) - As of September 30, 2023, the company and its subsidiary bank maintained capital levels well above regulatory requirements, meeting the "well-capitalized" standard[246](index=246&type=chunk) - As of September 30, 2023, cash and cash equivalents increased by **$13.3 million** to **$132.4 million**[248](index=248&type=chunk) [FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISKS](index=65&type=section&id=FORWARD-LOOKING%20STATEMENTS%20AND%20ASSOCIATED%20RISKS) Highlights the inherent uncertainties and risks associated with forward-looking statements, including market conditions, regulatory changes, and economic factors - Forward-looking statements are based on assumptions and are subject to risks and uncertainties such as interest rate changes, adverse economic conditions, impacts from recent bank failures, changes in competitive conditions, technological changes, cyberattacks, litigation liabilities, Federal Reserve actions, LIBOR replacement, CECL standard impacts, increased FDIC premiums, and regulatory actions[253](index=253&type=chunk)[254](index=254&type=chunk) - The company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of the statement[252](index=252&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=67&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Discloses the company's exposure to market risks, primarily liquidity and interest rate risks, and assesses their potential impact on net interest income and net portfolio value using simulation models - The company's primary market risks are liquidity risk and interest rate risk, which are regularly reviewed by the Asset/Liability Committee and the Board of Directors[257](index=257&type=chunk) - The company uses computer simulation models to assess the potential impact of interest rate changes on net interest income and net portfolio value (NPV)[259](index=259&type=chunk) Interest Rate Sensitivity Analysis: Net Interest Income (As of September 30, 2023) | Rate Change | Amount (Thousands of USD) | Percentage Change | | :---------- | :------------------------ | :---------------- | | +2% | 197,287 | (0.32)% | | +1% | 197,692 | (0.12)% | | Baseline | 197,930 | — | | -1% | 195,745 | (1.10)% | | -2% | 191,533 | (3.23)% | Interest Rate Sensitivity Analysis: Net Portfolio Value (As of September 30, 2023) | Rate Change | Net Portfolio Value (Thousands of USD) | Percentage Change | NPV Ratio | Change (Basis Points) | | :---------- | :------------------------------------- | :---------------- | :-------- | :-------------------- | | +2% | 582,710 | (15.19)% | 11.11% | (117) | | +1% | 633,282 | (7.83)% | 11.69% | (59) | | Baseline | 687,079 | — | 12.28% | — | | -1% | 735,299 | 7.02% | 12.72% | 44 | | -2% | 775,055 | 12.80% | 12.98% | 70 | [Item 4. Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management assessed and confirmed the effectiveness of the company's disclosure controls and procedures as of September 30, 2023, noting inherent limitations but no significant changes to internal controls during the quarter - As of September 30, 2023, the company's disclosure controls and procedures were assessed as effective in ensuring timely reporting of material information to management[269](index=269&type=chunk) - Internal control systems have inherent limitations, including the possibility of human error and circumvention, thus providing only reasonable assurance[269](index=269&type=chunk) - No significant changes occurred in the company's internal control over financial reporting during the third fiscal quarter of 2023[270](index=270&type=chunk) [PART II. OTHER INFORMATION](index=70&type=section&id=PART%20II.%20OTHER%20INFORMATION) Presents additional information not covered in the financial statements, including legal proceedings, risk factors, equity sales, defaults, and exhibits [Item 1. Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) The company currently has no pending legal proceedings beyond routine litigation incidental to its ordinary course of business - The company and its subsidiaries currently have no pending legal proceedings other than routine litigation incidental to their ordinary course of business[272](index=272&type=chunk) [Item 1A. Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) This chapter updates the company's risk factors, emphasizing the potential adverse impact of recent bank failures on financial services liquidity and competition, and new regulatory requirements that may increase operating costs and reduce profitability - Recent bank failures (e.g., Silicon Valley Bank, Signature Bank, and First Republic Bank) have led to widespread uncertainty in the financial services industry and raised concerns about the adequacy of liquidity in the banking sector[274](index=274&type=chunk) - Market uncertainty and external factors may unpredictably affect the competitive landscape for bank deposits, and rising interest rates have increased the cost of liquidity acquisition[274](index=274&type=chunk) - Recent events in the financial services industry are expected to lead to new regulatory requirements, increasing the company's operating costs and reducing profitability, including potential increases in FDIC insurance premiums[275](index=275&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This chapter discloses that the company did not repurchase any common stock during the third quarter of 2023, despite a board-approved plan from January 31, 2022, authorizing the repurchase of up to 1 million shares - The company did not repurchase any shares of common stock during the third quarter of 2023[278](index=278&type=chunk) - The company's Board of Directors approved a stock repurchase program on January 31, 2022, authorizing the repurchase of up to **1,000,000 shares** of common stock, representing approximately **3%** of outstanding shares at that time, but the company is not obligated to purchase shares, and the plan may be terminated at any time[278](index=278&type=chunk) [Item 3. Defaults Upon Senior Securities](index=71&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities as of the end of this reporting period - The company has no defaults upon senior securities[279](index=279&type=chunk) [Item 4. Mine Safety Disclosures](index=71&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section is not applicable - Mine safety disclosures are not applicable[280](index=280&type=chunk) [Item 5. Other Information](index=71&type=section&id=Item%205.%20Other%20Information) This chapter discloses that for the three months ended September 30, 2023, the company had no information required to be disclosed in a Form 8-K report, no changes in director nomination procedures, and no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No information required to be disclosed in a Form 8-K report[282](index=282&type=chunk) - No changes in director nomination procedures[284](index=284&type=chunk) - During the third quarter of 2023, no directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements[285](index=285&type=chunk) [Item 6. Exhibits](index=72&type=section&id=Item%206.%20Exhibits) This chapter lists the exhibits filed with this report or incorporated by reference, including articles of incorporation, stock certificate specimens, indentures, executive compensation arrangements, and XBRL documents - Exhibits include articles of incorporation, stock certificate specimens, indentures, executive compensation arrangements, and XBRL documents[287](index=287&type=chunk)

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 June 30, 2023 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 Principal ...

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, 2023 Commission File Number 001-15877 711 Main Street, Jasper, Indiana 47546 (Address of Principal Executive Offices and Zip Code) Registrant's telephone number, including area code: (812) 482-1314 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section ...

German American Twelve of the past Thirteen Years of Improved Earnings Performance Total Loans, Net of Unearned Income Total Shareholders' Equity Earnings Per Share Indiana & Kentucky Community-focused Financial Services Organization FINANCIAL TRENDS Commercial & Agricultural Loans as % of Total Loans $2,728 $3,077 $3,088 $3,004 $3,785 78% 80% 82% 81% 81% $- $250 $500 $750 $1,000 $1,250 $1,500 $1,750 $2,000 $2,250 $2,500 $2,750 $3,000 $3,250 $3,500 $3,750 $4,000 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 ...