German American(US:GABC) Businesswire·2026-01-26 21:45Core 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].