German American(US:GABC) Businesswireยท2025-10-27 20:45Core Insights - German American Bancorp, Inc. reported record earnings for Q3 2025, with net income of $35.1 million or $0.94 per share, marking a 12% increase from Q2 2025 and a 32% increase from Q3 2024 [1][22][23] Financial Performance - The company achieved a return on average assets of 1.68%, return on average equity of 13.0%, and a net interest margin of 4.06% [1][2] - Total deposits increased by 3.4% on an annualized basis, driven by a 9% increase in non-interest bearing demand deposits [4][19] - Non-interest income rose by $1.7 million or 10% compared to Q2 2025, attributed to growth in wealth management and deposit fees [5][30] Loan Portfolio - The overall loan portfolio increased by approximately 3% on an annualized basis, with non-performing loans at 0.41% of total loans [3][10] - Agricultural loans grew by 10% on an annualized basis, while commercial and industrial loans saw a slight decline [10][11] Acquisition Impact - The Heartland acquisition, completed in February 2025, significantly contributed to the company's asset growth, with total assets reaching $8.401 billion, an increase of $2.140 billion compared to Q3 2024 [9][46] - The acquisition added approximately $1.615 billion in deposits and $1.58 billion in loans to the company's balance sheet [17][19] Efficiency and Dividends - The efficiency ratio improved to 49.26%, indicating enhanced profitability [6] - The Board of Directors declared a quarterly cash dividend of $0.29 per share, payable on November 20, 2025 [6]