EX-99.1 2 exhibit991q12024.htm EX-99.1 Document
    
NEWS RELEASE

For additional information, contact:
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M Rust, President and Chief Financial Officer
(812) 482-1314

1 of 13    

April 29, 2024 GERMAN AMERICAN BANCORP, INC. (GABC) REPORTS FIRST QUARTER 2024 EARNINGS


Jasper, Indiana: April 29, 2024 – 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, strong credit metrics, controlled operating expenses, and a solid level of diversified non-interest income. However, from an earnings perspective, these increases were more than offset by lower net interest income as a result of modest net interest margin compression driven by higher deposit costs.

The net interest margin declined from 3.43% to 3.35%, or 8 basis points, during the first quarter of 2024 on a linked quarter basis as the funding cost increase of 12 basis points outpaced the earning asset yield increase of 4 basis points. The rise in the cost of funds in the first quarter of 2024 was driven by the continued competitive deposit pricing in the marketplace, and the ongoing re-mixing of the Company’s deposit composition as customers continued to move into time deposit accounts seeking higher yields.

First quarter 2024 deposits declined approximately $33.6 million, or 3%, on an annualized linked quarter basis compared to year-end 2023 driven by a delayed seasonal outflow of public fund deposits into first quarter 2024. Non-public funds however continued to grow positively on a linked quarter basis. The overall core deposit base remains diverse with stable and manageable exposure to uninsured and uncollateralized deposits of approximately 21% and non-interest bearing demand accounts remaining stable at 28% of total deposits

During the first quarter of 2024 loans remained stable and diversified with commercial real estate and retail organic loan growth helping to offset the larger seasonal reductions in utilization of agricultural lines of credit and ongoing reduced utilization in commercial and industrial lines. Credit quality remained strong as non-performing assets were 0.16% of period end assets and non-performing loans totaled 0.25% of period end loans.

Non-interest income for the first quarter 2024 was driven by an increase in wealth management fees attributable to the ongoing growth and gathering of assets under management. Insurance revenues also contributed in a meaningful way driven by seasonal contingency income as well as improved commercial lines revenue. Linked quarter interchange fee income was lower as fourth quarter 2023 usage was seasonally up from the holidays and first quarter 2024 usage was seasonally down due to tax refunds.

The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.27 per share, which will be payable on May 20, 2024 to shareholders of record as of May 10, 2024. As previously reported, this dividend rate represents an 8% increase over the rate in effect during 2023.

    
NEWS RELEASE

For additional information, contact:
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M Rust, President and Chief Financial Officer
(812) 482-1314

2 of 13    

D. Neil Dauby, German American’s Chairman & CEO stated, “Our Company delivered solid first quarter results to kick off the 2024 year while maintaining strong capital levels and a solid liquidity position. During the quarter, we continued to add key talent to our team in both customer facing and operational areas. We continued to invest in new digital platforms/systems to improve customer experience, drive customer acquisition/retention and drive future revenues. Our talented team of “relationship driven, value added” professionals, innovative technology and continuous improvement mindset will position us well for continued growth across our footprint.”

Balance Sheet Highlights

Total assets for the Company totaled $6.112 billion at March 31, 2024, representing a decline of $40.3 million compared with December 31, 2023 and an increase of $115.0 million compared with March 31, 2023. The modest decline in total assets at March 31, 2024 compared with year-end 2023 was largely related to a decline in the securities portfolio while the increase in total assets at March 31, 2024 compared to March 31, 2023 was largely attributable to an increase in total loans, partially offset by a decline in the securities portfolio.

Securities available for sale declined $57.6 million as of March 31, 2024 compared with December 31, 2023 and declined $131.0 million compared with March 31, 2023. The decline at March 31, 2024 in the available for sale securities portfolio compared with year-end 2023 and the end of the first quarter of 2023 was primarily the result of the Company's utilization of cash flows from the securities portfolio to fund loan growth and other balance sheet funding needs. Current projections indicate approximately $190.0 million in principal and interest cash flows from the portfolio over the next twelve months with rates unchanged.

Total loans remained relatively stable at March 31, 2024 compared with year-end 2023, increasing by $1.0 million, while total loans increased $206.1 million, or 6%, compared with March 31, 2023. The modest increase during the first quarter of 2024 compared with year-end 2023 was largely attributable to increased commercial real estate loans and retail loans, partially offset by lower seasonal line utilization for agricultural loans and lower line utilization for commercial and industrial loans. Commercial real estate loans increased $27.0 million, or 5% on an annualized basis, while retail loans grew $12.5 million, or 6% on an annualized basis. Partially offsetting these increases was a decline in agricultural loans of $23.1 million, or 22% on an annualized basis, and a decline in commercial and industrial loans of $15.4 million, or 9% on an annualized basis, as line of credit utilization declined in both of these segments.


    
NEWS RELEASE

For additional information, contact:
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M Rust, President and Chief Financial Officer
(812) 482-1314

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The composition of the loan portfolio has remained relatively stable and diversified over the past several years, including 2024. The portfolio is most heavily concentrated in commercial real estate loans at 54% of the portfolio, followed by commercial and industrial loans at 16% of the portfolio, and agricultural loans at 10% of the portfolio. The Company’s commercial lending is extended to various industries, including multi-family housing and lodging, agribusiness and manufacturing, as well as health care, wholesale, and retail services. The Company's commercial real estate portfolio has limited exposure to office real estate, with office exposure totaling approximately 4% of the total loan portfolio.

End of Period Loan Balances3/31/202412/31/20233/31/2023
(dollars in thousands)
Commercial & Industrial Loans$646,162 $661,529 $667,306 
Commercial Real Estate Loans2,148,808 2,121,835 2,000,237 
Agricultural Loans400,733 423,803 378,587 
Consumer Loans421,980 407,889 376,398 
Residential Mortgage Loans361,236 362,844 350,338 
$3,978,919 $3,977,900 $3,772,866 

The Company’s allowance for credit losses totaled $43.8 million at both March 31, 2024 and December 31, 2023 and totaled $44.3 million at March 31, 2023. The allowance for credit losses represented 1.10% of period-end loans at both March 31, 2024 and December 31, 2023 and represented 1.18% of period-end loans at March 31, 2023.
Non-performing assets totaled $10.0 million at March 31, 2024, $9.2 million at December 31, 2023 and $14.6 million at March 31, 2023. Non-performing assets represented 0.16% of total assets at March 31, 2024, 0.15% at December 31, 2023 and 0.24% at March 31, 2023. Non-performing loans represented 0.25% of total loans at March 31, 2024, 0.23% at December 31, 2023 and 0.39% at March 31, 2023.

Non-performing Assets
(dollars in thousands)
3/31/202412/31/20233/31/2023
Non-Accrual Loans$9,898 $9,136 $13,495 
Past Due Loans (90 days or more)85 55 1,098 
       Total Non-Performing Loans9,983 9,191 14,593 
Other Real Estate— — — 
       Total Non-Performing Assets$9,983 $9,191 $14,593 



    
NEWS RELEASE

For additional information, contact:
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M Rust, President and Chief Financial Officer
(812) 482-1314

4 of 13    
March 31, 2024 total deposits declined $33.6 million, or 3% on an annualized basis, compared to year-end 2023 and increased $64.5 million, or 1%, compared with March 31, 2023. The decline at March 31, 2024 compared to year-end 2023 was largely attributable to seasonal outflows of public entity funds. The Company has continued to see customer movement from both interest bearing and non-interest bearing transactional accounts to time deposits due primarily to a higher interest rate environment. Non-interest bearing deposits have remained relatively stable as a percent of total deposits with both March 31, 2024 and December 31, 2023 non-interest deposits totaling 28% of total deposits compared with 31% at March 31, 2023.

End of Period Deposit Balances3/31/202412/31/20233/31/2023
(dollars in thousands)
Non-interest-bearing Demand Deposits$1,463,933 $1,493,160 $1,601,206 
IB Demand, Savings, and MMDA Accounts2,918,459 2,992,761 3,039,393 
Time Deposits < $100,000328,804 289,077 245,104 
Time Deposits > $100,000508,151 477,965 269,192 
$5,219,347 $5,252,963 $5,154,895 

At March 31, 2024, the capital levels for the Company and its subsidiary bank, German American Bank (the “Bank”), remained well in excess of the minimum amounts needed for capital adequacy purposes and the Bank’s capital levels met the necessary requirements to be considered well-capitalized.

3/31/2024
Ratio		12/31/2023
Ratio		3/31/2023
Ratio
Total Capital (to Risk Weighted Assets)
Consolidated16.57 %16.50 %15.89 %
Bank14.53 %14.76 %14.37 %
Tier 1 (Core) Capital (to Risk Weighted Assets)
Consolidated14.97 %14.97 %14.32 %
Bank13.73 %14.04 %13.63 %
Common Tier 1 (CET 1) Capital Ratio
 (to Risk Weighted Assets)
Consolidated14.27 %14.26 %13.60 %
Bank13.73 %14.04 %13.63 %
Tier 1 Capital (to Average Assets)
Consolidated12.01 %11.75 %11.08 %
Bank11.02 %11.03 %10.55 %



    
NEWS RELEASE

For additional information, contact:
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M Rust, President and Chief Financial Officer
(812) 482-1314

5 of 13    
Results of Operations Highlights – Quarter ended March 31, 2024

Net income for the quarter ended March 31, 2024 totaled $19,022,000, or $0.64 per share, a decline of 12% on a per share basis, compared with the fourth quarter 2023 net income of $21,507,000, or $0.73 per share, and a decline of 10% on a per share basis compared with the first quarter 2023 net income of $20,807,000, or $0.71 per share.
Summary Average Balance Sheet
(Tax-equivalent basis / dollars in thousands)
 Quarter Ended Quarter Ended Quarter Ended
March 31, 2024December 31, 2023March 31, 2023
 Principal Balance Income/ Expense Yield/ RatePrincipal BalanceIncome/ Expense Yield/ Rate Principal Balance Income/ Expense Yield/ Rate
Assets
Federal Funds Sold and Other
        Short-term Investments$22,903 $299 5.25 %$36,927 $473 5.09 %$46,729 $345 2.99 %
Securities1,595,700 11,537 2.89 %1,527,306 11,903 3.12 %1,729,189 12,595 2.91 %
Loans and Leases3,972,232 58,067 5.88 %3,921,967 56,257 5.69 %3,773,789 49,245 5.29 %
Total Interest Earning Assets$5,590,835 $69,903 5.02 %$5,486,200 $68,633 4.98 %$5,549,707 $62,185 4.53 %
Liabilities
Demand Deposit Accounts$1,426,239 $1,507,780 $1,636,133 
IB Demand, Savings, and
        MMDA Accounts$2,969,755 $12,823 1.74 %$3,010,984 $12,433 1.64 %$3,119,979 $7,414 0.96 %
Time Deposits806,976 8,166 4.07 %709,534 6,577 3.68 %451,644 1,557 1.40 %
FHLB Advances and Other Borrowings196,348 2,275 4.66 %202,555 2,394 4.69 %244,645 2,509 4.16 %
Total Interest-Bearing Liabilities$3,973,079 $23,264 2.36 %$3,923,073 $21,404 2.16 %$3,816,268 $11,480 1.22 %
Cost of Funds1.67 %1.55 %0.84 %
Net Interest Income$46,639 $47,229 $50,705 
Net Interest Margin3.35 %3.43 %3.69 %

During the first quarter of 2024, net interest income, on a non tax-equivalent basis, totaled $44,994,000, a decline of $613,000, or 1%, compared to the fourth quarter of 2023 net interest income of $45,607,000 and a decline of $4,015,000, or 8%, compared to the first quarter of 2023 net interest income of $49,009,000.

The decline in net interest income during the first quarter of 2024 compared with both the fourth quarter of 2023 and the first quarter of 2023 was primarily attributable to a decline in the Company's net interest margin. The tax equivalent net interest margin for the quarter ended March 31, 2024 was 3.35% compared with 3.43% in the fourth quarter of 2023 and 3.69% in the first quarter of 2023. The decline in the net interest margin during the first quarter of 2024 compared with both the fourth quarter of 2023 and the first quarter of 2023 was largely driven by an increase in the cost of funds. The cost of funds continued to

    
NEWS RELEASE

For additional information, contact:
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M Rust, President and Chief Financial Officer
(812) 482-1314

6 of 13    
accelerate higher in the first quarter of 2024 due to highly competitive deposit pricing in the marketplace, customers actively looking for yield opportunities within and outside the banking industry and a continued shift in the Company's deposit composition to a higher level of time deposits.

The Company's net interest margin and net interest income have been impacted by accretion of loan discounts on acquired loans. Accretion of discounts on acquired loans totaled $360,000 during the first quarter of 2024, $280,000 during the fourth quarter of 2023 and $530,000 during the first quarter of 2023. Accretion of loan discounts on acquired loans contributed approximately 3 basis points to the net interest margin in the first quarter of 2024, 2 basis points in the fourth quarter of 2023 and 4 basis points in the first quarter of 2023.

During the quarter ended March 31, 2024, the Company recorded a provision for credit losses of $900,000 compared with no provision in the fourth quarter of 2023 and a provision for credit losses of $1,100,000 during the first quarter of 2023. The lack of a provision in the fourth quarter of 2023 was largely related to the resolution, during the fourth quarter of 2023, of a single commercial borrowing relationship with minimal loss recognition for which the Company had established a significant reserve in previous periods.

Net charge-offs totaled $911,000, or 9 basis points on an annualized basis, of average loans outstanding during the first quarter of 2024 compared with $881,000, or 9 basis points on an annualized basis, of average loans during the fourth quarter of 2023 and compared with $953,000, or 10 basis points, of average loans during the first quarter of 2023.

During the quarter ended March 31, 2024, non-interest income totaled $15,822,000, an increase of $228,000 or 1%, compared with the fourth quarter of 2023 and an increase of $855,000, or 6%, compared with the first quarter of 2023.
Quarter EndedQuarter EndedQuarter Ended
Non-interest Income3/31/202412/31/20233/31/2023
(dollars in thousands)
Wealth Management Fees$3,366 $3,198 $2,644 
Service Charges on Deposit Accounts2,902 2,885 2,788 
Insurance Revenues2,878 2,266 3,135 
Company Owned Life Insurance441 455 401 
Interchange Fee Income4,087 4,371 4,199 
Other Operating Income1,362 1,887 1,211 
     Subtotal15,036 15,062 14,378 
Net Gains on Sales of Loans751 532 587 
Net Gains on Securities35 — 2 
Total Non-interest Income$15,822 $15,594 $14,967 


    
NEWS RELEASE

For additional information, contact:
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M Rust, President and Chief Financial Officer
(812) 482-1314

7 of 13    
Wealth management fees increased $168,000, or 5%, during the first quarter of 2024 compared with the fourth quarter of 2023 and increased $722,000, or 27%, compared with the first quarter of 2023. The increase during the first quarter of 2024 was largely attributable to increased assets under management within the Company's wealth management group as compared with both the fourth quarter of 2023 and first quarter of 2023.

Insurance revenues increased $612,000, or 27%, during the quarter ended March 31, 2024, compared with the fourth quarter of 2023 and declined $257,000, or 8%, compared with the first quarter of 2023. The increase during the first quarter of 2024 compared with the fourth quarter of 2023 primarily related to contingency revenue and to an increase in commercial lines insurance revenues. The decline during the first quarter of 2024 compared with the first quarter of 2023 was related to a decline in contingency revenue, partially mitigated by increased commercial lines revenue. Contingency revenue during the first quarter of 2024 totaled $391,000 compared with no contingency revenue during the fourth quarter of 2023 and $945,000 during the first quarter of 2023. Contingency revenue is reflective of claims and loss experience with insurance carriers that the Company represents through its property and casualty insurance agency. Typically, the majority of contingency revenue is recognized during the first quarter of the year.

Interchange fee income declined $284,000, or 7%, during the quarter ended March 31, 2024 compared with the fourth quarter of 2023 and declined $112,000, or 3%, compared with the first quarter of 2023. The decline in the first quarter of 2024 compared with the fourth quarter of 2023 was largely related to a seasonally lower level of customer transaction volume.

Other operating income declined $525,000, or 28%, during the first quarter of 2024 compared with the fourth quarter of 2023 and increased $151,000, or 12%, compared with the first quarter of 2023. The decline during the first quarter of 2024 compared to the fourth quarter of 2023 was largely attributable to the gain on sale of real estate related to the consolidation of various branch office facilities during the fourth quarter of 2023, partially mitigated by improved fees and fair value adjustments associated with interest rate swap transactions with loan customers. The increase during the first quarter of 2024 compared with the same period of the prior year was related to a higher level of fees associated with interest rate swap transactions with loan customers.

Net gains on sales of loans increased $219,000, or 41%, during the first quarter of 2024 compared with the fourth quarter of 2023 and increased $164,000, or 28%, compared with the first quarter of 2023. The increase during the first quarter of 2024 compared with both the fourth quarter of 2023 and the first quarter of 2023 was largely related to improved pricing levels on loans sold and fair value adjustments on commitments to sell loans. Loan sales totaled $24.0 million during the first quarter of 2024 compared with $27.0 million during the fourth quarter of 2023 and $23.4 million during the first quarter of 2023.


    
NEWS RELEASE

For additional information, contact:
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M Rust, President and Chief Financial Officer
(812) 482-1314

8 of 13    
During the quarter ended March 31, 2024, non-interest expense totaled $36,738,000, an increase of $1,004,000, or 3%, compared with the fourth quarter of 2023, and a decline of $878,000, or 2%, compared with the first quarter of 2023.
Quarter EndedQuarter EndedQuarter Ended
Non-interest Expense3/31/202412/31/20233/31/2023
(dollars in thousands)
Salaries and Employee Benefits$21,178 $20,948 $21,846 
Occupancy, Furniture and Equipment Expense3,804 3,513 3,820 
FDIC Premiums729 701 741 
Data Processing Fees2,811 2,835 2,755 
Professional Fees1,595 1,170 1,562 
Advertising and Promotion1,138 1,151 1,167 
Intangible Amortization578 636 785 
Other Operating Expenses4,905 4,780 4,940 
Total Non-interest Expense$36,738 $35,734 $37,616 

Salaries and benefits increased $230,000, or 1%, during the quarter ended March 31, 2024 compared with the fourth quarter of 2023 and declined $668,000, or 3%, compared with the first quarter of 2023. The decline in salaries and benefits during the first quarter of 2024 compared with the first quarter of 2023 was primarily due to a lower level of full-time equivalent employees and lower incentive compensation.

Occupancy, furniture and equipment expense increased $291,000, or 8%, during the first quarter of 2024 compared with the fourth quarter of 2023 and declined $16,000, or less than 1%, compared to the first quarter of 2023. The increase during the first quarter of 2024 compared with the fourth quarter of 2023 was largely due to seasonal maintenance activities.

Professional fees increased $425,000, or 36%, in the first quarter of 2024 compared with the fourth quarter of 2023 and increased $33,000, or 2%, compared with the first quarter of 2023. The increase during the first quarter of 2024 compared with the fourth quarter of 2023 was largely attributable to the costs associated with services related to the Company's year-end financial reporting processes and annual meeting preparations, and costs associated with certain talent recruiting engagements.

About German American

German American Bancorp, Inc. is a Nasdaq-traded (symbol: GABC) financial holding company based in Jasper, Indiana. German American, through its banking subsidiary German American Bank, operates 74 banking offices in 20 contiguous southern Indiana counties and 14 counties in Kentucky. The Company also owns an investment brokerage subsidiary (German American Investment Services, Inc.) and a full line property and casualty insurance agency (German American Insurance, Inc.).

    
NEWS RELEASE

For additional information, contact:
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M Rust, President and Chief Financial Officer
(812) 482-1314

9 of 13    



Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Readers are cautioned that, by their nature, forward-looking statements are based on assumptions and are subject to risks, uncertainties, and other factors. Forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions. Actual results and experience could differ materially from the anticipated results or other expectations expressed or implied by these forward-looking statements as a result of a number of factors, including but not limited to, those discussed in this press release. Factors that could cause actual experience to differ from the expectations expressed or implied in this press release include:

a.changes in interest rates and the timing and magnitude of any such changes;
b.unfavorable economic conditions, including a prolonged period of inflation, and the resulting adverse impact on, among other things, credit quality;
c. the soundness of other financial institutions and general investor sentiment regarding the stability of financial institutions;
d. changes in our liquidity position;
e. the impacts of epidemics, pandemics or other infectious disease outbreaks;
f.    changes in competitive conditions;
g.    the introduction, withdrawal, success and timing of asset/liability management strategies or of mergers and acquisitions and other business initiatives and strategies;
h.    changes in customer borrowing, repayment, investment and deposit practices;
i.    changes in fiscal, monetary and tax policies;
j.    changes in financial and capital markets;
k.    capital management activities, including possible future sales of new securities, or possible repurchases or redemptions by German American of outstanding debt or equity securities;
l.    risks of expansion through acquisitions and mergers, such as unexpected credit quality problems of the acquired loans or other assets, unexpected attrition of the customer base or employee base of the acquired institution or branches, and difficulties in integration of the acquired operations;    

m.    factors driving credit losses on investments;

n.    the impact, extent and timing of technological changes;
o.    potential cyber-attacks, information security breaches and other criminal activities;

    
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Bradley M Rust, President and Chief Financial Officer
(812) 482-1314

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p.    litigation liabilities, including related costs, expenses, settlements and judgments, or the outcome of matters before regulatory agencies, whether pending or commencing in the future;
q.    actions of the Federal Reserve Board;
r.    changes in accounting principles and interpretations;
s.    potential increases of federal deposit insurance premium expense, and possible future special assessments of FDIC premiums, either industry wide or specific to German American’s banking subsidiary;
t.    actions of the regulatory authorities under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the Federal Deposit Insurance Act and other possible legislative and regulatory actions and reforms;
u.    impacts resulting from possible amendments or revisions to the Dodd-Frank Act and the regulations promulgated thereunder, or to Consumer Financial Protection Bureau rules and regulations;
v.    the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends; and
w.    other risk factors expressly identified in German American’s filings with the SEC.
Such statements reflect our views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of German American. Readers are cautioned not to place undue reliance on these forward-looking statements. It is intended that these forward-looking statements speak only as of the date they are made. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.



GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Balance Sheets
March 31, 2024December 31, 2023March 31, 2023
ASSETS
     Cash and Due from Banks $52,839 $78,805 $70,506 
     Short-term Investments 71,131 37,025 10,289 
     Investment Securities1,539,623 1,597,185 1,670,609 
     Loans Held-for-Sale10,325 5,226 6,011 
     Loans, Net of Unearned Income3,971,910 3,971,082 3,768,872 
     Allowance for Credit Losses(43,754)(43,765)(44,315)
        Net Loans3,928,156 3,927,317 3,724,557 
     Stock in FHLB and Other Restricted Stock14,630 14,687 14,957 
     Premises and Equipment106,030 106,776 112,225 
     Goodwill and Other Intangible Assets186,022 186,664 188,929 
     Other Assets203,173 198,513 198,836 
   TOTAL ASSETS$6,111,929 $6,152,198 $5,996,919 
LIABILITIES
     Non-interest-bearing Demand Deposits$1,463,933 $1,493,160 $1,601,206 
     Interest-bearing Demand, Savings, and Money Market Accounts2,918,459 2,992,761 3,039,393 
     Time Deposits836,955 767,042 514,296 
        Total Deposits5,219,347 5,252,963 5,154,895 
     Borrowings191,810 193,937 191,052 
     Other Liabilities45,518 41,740 45,641 
   TOTAL LIABILITIES5,456,675 5,488,640 5,391,588 
SHAREHOLDERS' EQUITY
     Common Stock and Surplus419,520 418,996 417,203 
     Retained Earnings472,689 461,622 418,620 
     Accumulated Other Comprehensive Income (Loss)(236,955)(217,060)(230,492)
SHAREHOLDERS' EQUITY655,254 663,558 605,331 
   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY$6,111,929 $6,152,198 $5,996,919 
END OF PERIOD SHARES OUTSTANDING 29,669,019 29,584,709 29,573,439 
TANGIBLE BOOK VALUE PER SHARE (1)
$15.82 $16.12 $14.08 
(1) Tangible Book Value per Share is defined as Total Shareholders' Equity less Goodwill and Other Intangible Assets divided by End of Period Shares Outstanding.


GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Statements of Income
Three Months Ended
March 31, 2024December 31, 2023March 31, 2023
INTEREST INCOME
   Interest and Fees on Loans$57,826 $56,058 $49,061 
   Interest on Short-term Investments299 473 345 
   Interest and Dividends on Investment Securities10,133 10,480 11,083 
  TOTAL INTEREST INCOME68,258 67,011 60,489 
INTEREST EXPENSE
   Interest on Deposits20,989 19,010 8,971 
   Interest on Borrowings2,275 2,394 2,509 
  TOTAL INTEREST EXPENSE23,264 21,404 11,480 
   NET INTEREST INCOME44,994 45,607 49,009 
   Provision for Credit Losses900 — 1,100 
   NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES44,094 45,607 47,909 
NON-INTEREST INCOME
   Net Gain on Sales of Loans751 532 587 
   Net Gain on Securities35 — 2 
   Other Non-interest Income15,036 15,062 14,378 
  TOTAL NON-INTEREST INCOME15,822 15,594 14,967 
NON-INTEREST EXPENSE
   Salaries and Benefits21,178 20,948 21,846 
   Other Non-interest Expenses15,560 14,786 15,770 
  TOTAL NON-INTEREST EXPENSE36,738 35,734 37,616 
   Income before Income Taxes23,178 25,467 25,260 
   Income Tax Expense4,156 3,960 4,453 
NET INCOME$19,022 $21,507 $20,807 
BASIC EARNINGS PER SHARE $0.64 $0.73 $0.71 
DILUTED EARNINGS PER SHARE $0.64 $0.73 $0.71 
WEIGHTED AVERAGE SHARES OUTSTANDING 29,599,491 29,575,398 29,507,446 
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING 29,599,491 29,575,398 29,507,446 


GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Three Months Ended
March 31, 2024December 31, 2023March 31, 2023
EARNINGS PERFORMANCE RATIOS
Annualized Return on Average Assets1.25 %1.43 %1.37 %
Annualized Return on Average Equity11.58 %15.45 %14.39 %
Annualized Return on Average Tangible Equity (1)
16.17 %23.26 %21.38 %
Net Interest Margin3.35 %3.43 %3.69 %
Efficiency Ratio (2)
57.92 %55.87 %56.08 %
Net Overhead Expense to Average Earning Assets (3)
1.50 %1.47 %1.63 %
ASSET QUALITY RATIOS
Annualized Net Charge-offs to Average Loans0.09 %0.09 %0.10 %
Allowance for Credit Losses to Period End Loans1.10 %1.10 %1.18 %
Non-performing Assets to Period End Assets0.16 %0.15 %0.24 %
Non-performing Loans to Period End Loans0.25 %0.23 %0.39 %
Loans 30-89 Days Past Due to Period End Loans0.29 %0.33 %0.27 %
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA
Average Assets$6,102,370 $6,036,242 $6,078,126 
Average Earning Assets$5,590,835 $5,486,200 $5,549,707 
Average Total Loans$3,972,232 $3,921,967 $3,773,789 
Average Demand Deposits$1,426,239 $1,507,780 $1,636,133 
Average Interest Bearing Liabilities$3,973,079 $3,923,073 $3,816,268 
Average Equity$656,781 $556,914 $578,562 
Period End Non-performing Assets (4)
$9,983 $9,191 $14,593 
Period End Non-performing Loans (5)
$9,983 $9,191 $14,593 
Period End Loans 30-89 Days Past Due (6)
$11,485 $13,208 $10,360 
Tax Equivalent Net Interest Income$46,639 $47,229 $50,705 
Net Charge-offs during Period$911 $881 $953 
(1)Average Tangible Equity is defined as Average Equity less Average Goodwill and Other Intangibles.
(2)Efficiency Ratio is defined as Non-interest Expense less Intangible Amortization divided by the sum of Net Interest Income, on a tax equivalent basis, and Non-interest Income less Net Gain on Securities.
(3)Net Overhead Expense is defined as Total Non-interest Expense less Total Non-interest Income.
(4)Non-performing assets are defined as Non-accrual Loans, Loans Past Due 90 days or more, and Other Real Estate Owned.
(5)Non-performing loans are defined as Non-accrual Loans and Loans Past Due 90 days or more.
(6)Loans 30-89 days past due and still accruing.