German American(GABC) - 2025 Q3 - Quarterly Report

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].