German American(US:GABC)2026-01-26 21:46Financial 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]