US Market News
3 months ago
German American Bancorp, Inc. (GABC) Announces First Quarter Financial ResultsApril 27, 2026 4:20 PM
Business Wire
Quarterly earnings of $0.88 per share
Quarterly return on average assets of 1.58%
Robust net interest margin of 4.26%; Core adjusted of 4.08%
Low efficiency ratio* of 51.2%
Healthy credit metrics with annualized net charge-offs of 0.08% and non-performing assets of 0.35% to total assets
Healthy level of non-interest bearing demand accounts representing 28% of total deposits
Tangible common equity* (“TCE”) ratio increased to 9.6%; Return on average TCE* (“ROATCE”) of 17.08%
21+ years of double digit return on average shareholders’ equity
7% cash dividend increase announced in January 2026, making it the 14th consecutive year of increased cash dividends
Heartland BancCorp acquisition continues to integrate seamlessly as we grow our talent within the wealth management and commercial lending teams
Once again ranked in the top 10 best banks in the nation on the prestigious Forbes America’s Best Banks
German American Bancorp, Inc. (Nasdaq: GABC) (“German American” or the “Company”) announced financial results for the three months ended March 31, 2026. The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.31 per share, which will be payable on May 20, 2026 to shareholders of record as of May 10, 2026. As previously reported, this dividend rate represents a 7% increase over the rate in effect during 2025.
For the three months ended March 31, 2026, the Company reported net income of $33.2 million, or $0.88 per share, reflecting a linked quarter decrease of $2.5 million, or approximately 7% on a per share basis, from previous record level fourth quarter 2025 net income of $35.7 million, or $0.95 per share. First quarter 2026 earnings reflected an increase of $22.6 million, or approximately 193.3% on a per share basis, from the March 31, 2025 quarterly net income of $10.5 million, or $0.30 per share, which was significantly impacted by the Heartland BancCorp acquisition.
First quarter 2026 earnings reflected an increase of $5.9 million, or $0.09 (approximately 11%) on a per share basis, from the March 31, 2025 acquisition-adjusted quarterly net income of $27.3 million, or $0.79 per share.*
Profitability and capital remained strong as return on average assets for the first quarter 2026 was 1.58% and return on average tangible common equity was 17.08%. These compared to return on average assets of 1.67% and return on tangible common equity of 19.5% in the fourth quarter 2025 and 0.55% (1.43% as adjusted*) and 7.10% (18.41% adjusted*) for the first quarter 2025.
___________________________________________
* Represents a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
First Quarter 2026 highlights include:
Robust net interest margin of 4.26%
13 basis point (“bp”) increase from fourth quarter 2025 driven mostly by reduction in funding costs
Loan balances remained diversified and stable during the quarter
End of period loans decreased $25.8 million, or approximately 1.7% on an annualized basis, from year-end 2025, largely as a result of $20 million in seasonal paydowns of agricultural lines of credit, in excess of $40 million of exit strategy and private equity take-outs, and slow construction draws due to inclement weather, all of which combined to offset solid production in the first quarter of 2026
Total allowance for credit losses was $78.5 million, with total quarterly provision expense of $2.0 million, as credit metrics remained healthy
Ratio of allowance to total loans was stable at 1.34%
Annualized net charge offs remained minimal at 8 bps of average loans
Non-performing assets were unchanged at 0.35% of period end assets at March 31, 2026 and December 31, 2025
Deposits were stable during the quarter
Non-interest bearing deposits remained healthy and represented 28% of total deposits
End of period deposits decreased slightly by $8.8 million or 0.50% on an annualized linked quarter basis driven mostly by the seasonal outflow of public fund deposits in the first quarter
Interest bearing demand, savings and money market accounts increased approximately 1.4% on an annualized linked quarter basis
Capital ratios remained strong
Tangible common equity of 9.6%
Tangible book value per share of $20.44; 2% increase from linked quarter December 31, 2025
The Company increased its regular quarterly cash dividend by 7%, making it the 14th consecutive year of increased cash dividends, reflecting the Company’s strong operations and healthy capital position
Non-interest income remained stable in the first quarter 2026 across most segments. Interchange income was slightly lower as compared to fourth quarter 2025 due to seasonality. Mortgage activity picked up in the first quarter as net gain on sale of loans increased $374,000, or 34%, driven by higher volume and improved pricing
Non-interest expenses were elevated at $52.4 million, representing a $2.4 million, or 5%, increase over fourth quarter 2025
The efficiency ratio* for the first quarter of 2026 was elevated over the fourth quarter of 2025, but still remained strong at 51.2%
The increase in expenses for the first quarter of 2026 was impacted in part by the timing and seasonality of certain expenses
Salaries and benefits increased approximately 2.5% quarter over linked quarter, driven by merit increases for 2026, the reset of various payroll taxes and retirement matching contributions. Lastly, an outsized increase in occupancy expenses was driven by inclement weather in the first quarter of 2026.
D. Neil Dauby, Chairman and CEO of German American stated, “We are extremely pleased to deliver yet another solid earnings performance for the first quarter 2026. We believe we are positioned well for continued profitability with a strong net interest margin. Although the seasonal nature of our first quarter is typically softer from a balance sheet growth perspective, we are encouraged by the strength of our lending pipeline and our strong diversified organic growth footprint as we move into the remaining part of the year.”
Dauby also stated, “We continue to add top talent to our relationship-focused team of professionals, and with their dedicated efforts, we are confident that our strong community presence, healthy financial condition and disciplined approach to growth will continue to drive future profitability and long-term shareholder value. We remain excited and committed to the vitality and future growth of our Indiana, Kentucky and Ohio communities.”
Balance Sheet Highlights
On February 1, 2025, the Company completed its acquisition of Heartland BancCorp (“Heartland”) through the merger of Heartland with and into the Company. Immediately following completion of the Heartland holding company merger, Heartland’s subsidiary bank, Heartland Bank, was merged with and into the Company’s subsidiary bank, German American Bank (the “Bank”). Heartland, headquartered in Whitehall, Ohio, operated 20 retail banking offices located in Columbus, Ohio and Greater Cincinnati. As of the closing of the transaction, Heartland had total assets of approximately $1.94 billion, total loans of approximately $1.58 billion, and total deposits of approximately $1.73 billion. The Company issued approximately 7.74 million shares of its common stock, and paid approximately $23.1 million in cash, in exchange for all of the issued and outstanding shares of common stock of Heartland and in cancellation of all options to acquire Heartland common stock outstanding as of the effective time of the merger.
___________________________________________
* Represents a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Total assets for the Company were $8.382 billion at March 31, 2026, representing a decline of $6.3 million compared with December 31, 2025 and a decline of $37.2 million compared with March 31, 2025.
March 31, 2026 total loans declined $25.8 million, or 2% on an annualized basis, compared with December 31, 2025 and increased $203.7 million, or 4%, compared with March 31, 2025. The decline during the first quarter of 2026 compared with December 31, 2025 was largely driven by seasonal declines in agricultural lines of credit and a decline in commercial and industrial loans, partially mitigated by increased commercial real estate loans and retail loans. Agricultural loans declined $22.0 million, or 18% on an annualized basis, and commercial and industrial loans declined $15.3 million, or 7% on an annualized basis, while commercial real estate loans increased $9.9 million, or 1% on an annualized basis. Retail loans grew by $1.6 million, or 0.5% on an annualized basis, due in large part to strong home equity loan originations, which were partially offset by a reduced level of residential mortgage loans and consumer loans. The increase at March 31, 2026 compared with March 31, 2025 was due to solid organic loan growth throughout the Company’s footprint largely during the second half of 2025.
The composition of the loan portfolio has remained relatively stable and diversified over the past several years. The addition of the Heartland loan portfolio during the first quarter of 2025 resulted in only modest changes to the overall portfolio composition, most notably in the residential mortgage loan segment. The portfolio is most heavily weighted in commercial real estate loans at 54% of the portfolio, followed by commercial and industrial loans at 14% of the portfolio, residential mortgage loans at 13% of the portfolio, home equity loans at 9% of the portfolio and agricultural loans at 8% 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.
End of Period Loan Balances
3/31/2026
12/31/2025
3/31/2025
(dollars in thousands)
Commercial & Industrial Loans
$
832,933
$
848,240
$
812,073
Commercial Real Estate Loans
3,152,336
3,142,472
3,055,074
Agricultural Loans
467,204
489,168
455,678
Consumer Loans
638,280
630,015
543,897
Residential Mortgage Loans
767,889
774,553
788,222
$
5,858,642
$
5,884,448
$
5,654,944
The Company’s allowance for credit losses totaled $78.5 million at March 31, 2026 compared to $77.7 million at December 31, 2025 and $75.2 million at March 31, 2025. The allowance for credit losses represented 1.34% of period-end loans at March 31, 2026, 1.32% at December 31, 2025 and 1.33% of period-end loans at March 31, 2025.
Under the CECL model, certain acquired loans continue to carry a fair value discount as well as an allowance for credit losses. As of March 31, 2026, the Company held net discounts on acquired loans of $49.5 million, which included $47.6 million related to the Heartland loan portfolio.
Non-performing assets totaled $29.6 million at March 31, 2026, $29.5 million at December 31, 2025, and $18.6 million at March 31, 2025. Non-performing assets represented 0.35% of total assets at March 31, 2026, 0.35% at December 31, 2025 and 0.22% at March 31, 2025. Non-performing loans represented 0.51% of total loans at March 31, 2026, 0.50% at December 31, 2025, and 0.33% at March 31, 2025. The increase in non-performing assets at March 31, 2026 compared to March 31, 2025 was largely related to three commercial relationships acquired in the Heartland transaction. The relationships were identified as adversely classified at the time of acquisition and have subsequently been placed on non-accrual status. Total non-performing assets from the Heartland acquisition were approximately $18.7 million at March 31, 2026.
Non-performing Assets
(dollars in thousands)
3/31/2026
12/31/2025
3/31/2025
Non-Accrual Loans
$
29,556
$
29,319
$
17,858
Past Due Loans (90 days or more and accruing)
—
92
714
Total Non-Performing Loans
29,556
29,411
18,572
Other Real Estate
—
68
48
Total Non-Performing Assets
$
29,556
$
29,479
$
18,620
March 31, 2026 total deposits declined $8.8 million, or less than 1% on an annualized basis, compared to December 31, 2025 and declined $117.0 million, or 1.6%, compared with March 31, 2025. Non-interest bearing deposits as a percent of total deposits have remained relatively stable at approximately 28% at both March 31, 2026 and December 31, 2025, and 27% at March 31, 2025.
End of Period Deposit Balances
3/31/2026
12/31/2025
3/31/2025
(dollars in thousands)
Non-interest-bearing Demand Deposits
$
1,926,859
$
1,944,831
$
1,889,673
IB Demand, Savings, and MMDA Accounts
3,768,529
3,755,374
3,788,889
Time Deposits < $100,000
459,370
475,943
443,285
Time Deposits > $100,000
826,150
813,594
976,038
$
6,980,908
$
6,989,742
$
7,097,885
At March 31, 2026, the capital levels for the Company and 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.
3/31/2026
Ratio
12/31/2025
Ratio
3/31/2025
Ratio
Total Capital (to Risk Weighted Assets)
Consolidated
15.27
%
14.93
%
15.01
%
Bank
14.03
%
13.80
%
13.47
%
Tier 1 (Core) Capital (to Risk Weighted Assets)
Consolidated
14.35
%
14.04
%
13.26
%
Bank
13.11
%
12.91
%
12.56
%
Common Tier 1 (CET 1) Capital Ratio
(to Risk Weighted Assets)
Consolidated
13.83
%
13.52
%
12.73
%
Bank
13.11
%
12.91
%
12.56
%
Tier 1 Capital (to Average Assets)
Consolidated
12.08
%
11.54
%
11.80
%
Bank
11.04
%
10.61
%
11.16
%
Results of Operations Highlights – Quarter ended March 31, 2026
Net income for the quarter ended March 31, 2026 totaled $33,152,000, or $0.88 per share, a decline of 7% on a per share basis compared with the fourth quarter 2025 net income of $35,683,000, or $0.95 per share, and an increase of 193% on a per share basis compared with the first quarter 2025 net income of $10,517,000, or $0.30 per share. The first quarter of 2025 was significantly impacted by non-recurring merger related expenses.
Adjusted net income for the fourth quarter of 2025 was $35,895,000, or $0.96 per share, and $27,287,000, or $0.79 per share, for the first quarter of 2025. Adjusted net income and adjusted earnings per share are non-GAAP financial measures. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Summary Average Balance Sheet
(Tax-equivalent basis / dollars in thousands)
Quarter Ended
Quarter Ended
Quarter Ended
March 31, 2026
December 31, 2025
March 31, 2025
Principal Balance
Income/ Expense
Yield/ Rate
Principal Balance
Income/ Expense
Yield/ Rate
Principal Balance
Income/ Expense
Yield/ Rate
Assets
Federal Funds Sold and Other
Short-term Investments
$
34,897
$
312
3.63
%
$
260,338
$
2,585
3.94
%
$
200,538
$
2,216
4.48
%
Securities
1,689,729
14,041
3.32
%
1,649,499
13,890
3.37
%
1,586,106
13,392
3.38
%
Loans and Leases
5,872,187
92,705
6.39
%
5,828,461
94,442
6.44
%
5,135,859
81,927
6.46
%
Total Interest Earning Assets
$
7,596,813
$
107,058
5.70
%
$
7,738,298
$
110,917
5.70
%
$
6,922,503
$
97,535
5.70
%
Liabilities
Demand Deposit Accounts
$
1,910,931
$
1,948,794
$
1,669,722
IB Demand, Savings, and MMDA Accounts
$
3,715,968
$
13,580
1.48
%
$
3,828,648
$
15,745
1.63
%
$
3,489,996
$
15,308
1.78
%
Time Deposits
1,293,193
11,118
3.49
%
1,335,506
12,268
3.64
%
1,270,137
11,720
3.74
%
FHLB Advances and Other Borrowings
216,518
2,159
4.04
%
219,970
2,648
4.78
%
216,613
2,616
4.90
%
Total Interest-Bearing Liabilities
$
5,225,679
$
26,857
2.08
%
$
5,384,124
$
30,661
2.26
%
$
4,976,746
$
29,644
2.42
%
Cost of Funds
1.44
%
1.57
%
1.74
%
Net Interest Income, Tax-Equivalent Basis*
$
80,201
$
80,256
$
67,891
Net Interest Margin
4.26
%
4.13
%
3.96
%
___________________________________________
* Represents a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
During the first quarter of 2026, net interest income, on a non tax-equivalent basis, totaled $78,851,000 remaining relatively stable compared to the fourth quarter of 2025 net interest income of $78,680,000 and an increase of $12,279,000, or 18%, compared to the first quarter of 2025 net interest income of $66,572,000.
The relative stability of net interest income during the first quarter of 2026 compared with the fourth quarter of 2025 was the result of an improved net interest margin which was largely mitigated by a lower level of average earning assets. The decline in average earning assets was driven by seasonally lower average deposits. The increase in net interest income during the first quarter of 2026 compared with the first quarter of 2025 was primarily attributable to a higher level of average earning assets driven in large part by the Heartland acquisition and improvement of the Company’s net interest margin.
The tax equivalent net interest margin for the quarter ended March 31, 2026 was 4.26% compared with 4.13% in the fourth quarter of 2025 and 3.96% in the first quarter of 2025. The continued improvement in the net interest margin during the first quarter of 2026 compared with both the fourth quarter of 2025 and first quarter of 2025 was driven by a lower cost of funds primarily attributable to lower deposit costs.
The Company’s net interest margin and net interest income in all periods presented have been impacted by accretion of loan discounts on acquired loans. Accretion of discounts on acquired loans totaled $3,456,000 during the first quarter of 2026, $3,966,000 during the fourth quarter of 2025, and $4,192,000 during the first quarter of 2025. Accretion of loan discounts on acquired loans contributed approximately 18 basis points to the net interest margin in the first quarter of 2026, 21 basis points in the fourth quarter of 2025 and 24 basis points in the first quarter of 2025.
During the quarter ended March 31, 2026, the Company recorded a provision for credit losses of $2,000,000 compared with a provision for credit losses of $2,225,000 in the fourth quarter of 2025 and a provision for credit losses of $15,300,000 during the first quarter of 2025. During the first quarter of 2025, the provision for credit losses included $16,200,000 for the Day 2 CECL addition to the allowance for credit loss related to the Heartland acquisition. In a transaction like the Heartland merger, the current accounting rules require the acquirer to recognize an allowance for credit losses in the period of acquisition for both purchased credit deterioration (“PCD”) assets and non-PCD assets. The determination of PCD versus non-PCD determines how the allowance for credit loss flows through the financial statements. For PCD assets, the gross-up method includes the impact in the “Day 1” business combination entries with no impact to expense. For non-PCD assets, the impact is reflected outside of the business combination entries (sometimes referred to as “Day 2”) and is reflected in expense.
Net charge-offs totaled $1,147,000, or 8 basis points on an annualized basis, of average loans outstanding during the first quarter of 2026 compared with $588,000, or 4 basis points on an annualized basis, of average loans during the fourth quarter of 2025 and $486,000, or 4 basis points on an annualized basis, of average loans during the first quarter of 2025.
During the quarter ended March 31, 2026, non-interest income totaled $17,226,000, a modest decline of $84,000, or less than 1%, compared with the fourth quarter of 2025 and an increase of $2,386,000, or 16%, compared with the first quarter of 2025. The increase during the first quarter of 2026 compared to the same period of 2025 was in part the result of the Heartland acquisition on February 1, 2025 and improvement of the Company’s existing fee revenue generation.
Quarter Ended
Quarter Ended
Quarter Ended
Non-interest Income
3/31/2026
12/31/2025
3/31/2025
(dollars in thousands)
Wealth Management Fees
$
4,509
$
4,519
$
3,836
Service Charges on Deposit Accounts
3,826
3,956
3,486
Company Owned Life Insurance
637
647
575
Interchange Fee Income
4,776
5,033
4,421
Other Operating Income
1,995
2,046
1,589
Subtotal
15,743
16,201
13,907
Net Gains on Sales of Loans
1,483
1,109
933
Net Gains (Losses) on Securities
—
—
—
Total Non-interest Income
$
17,226
$
17,310
$
14,840
Wealth management fees were relatively stable during the first quarter of 2026 compared with the fourth quarter of 2025 and increased $673,000, or 18%, compared with the first quarter of 2025. The increase during the first quarter of 2026 compared with the first quarter of 2025 was largely attributable to increased assets under management driven by healthy capital markets throughout much of 2025 and continued strong new business results.
Service charges on deposit accounts declined $130,000, or 3%, during the quarter ended March 31, 2026 compared with the fourth quarter of 2025 and increased $340,000, or 10%, compared with the first quarter of 2025. The increase during the first quarter of 2026 compared with the first quarter of 2025 was driven by the Heartland acquisition in addition to increased customer utilization of deposit services.
Interchange fees declined $257,000, or 5%, during the quarter ended March 31, 2026 compared with the fourth quarter of 2025 and increased $355,000, or 8%, compared with the first quarter of 2025. The decline in the first quarter of 2026 compared with the fourth quarter of 2025 was largely related to a seasonally lower level of customer transaction volume. The increase during the first quarter of 2026 compared with the first quarter of 2025 was attributable to increased card utilization by customers and the Heartland acquisition.
Other operating income declined $51,000, or 2%, during the first quarter of 2026 compared with the fourth quarter of 2025 and increased $406,000, or 26%, compared with the first quarter of 2025. The increase in other non-interest income during the first quarter of 2026 compared with the first quarter of 2025 was largely the result of the Heartland acquisition.
Net gains on sales of loans increased $374,000, or 34%, during the first quarter of 2026 compared with the fourth quarter of 2025 and increased $550,000, or 59%, compared with the first quarter of 2025. The increase during the first quarter of 2026 compared with both the fourth quarter of 2025 and first quarter of 2025 was driven by a higher volume of loans sold and improved pricing on loans sold. Loan sales totaled $52.1 million during the first quarter of 2026 compared with $48.2 million during the fourth quarter of 2025 and $39.3 million during the first quarter of 2025.
During the quarter ended March 31, 2026, non-interest expense totaled $52,368,000, an increase of $2,418,000, or 5%, compared with the fourth quarter of 2025, and a decline of $414,000, or 1%, compared with the first quarter of 2025. The first quarter of 2025 non-interest expenses included approximately $5,932,000 of non-recurring acquisition-related expenses associated with the Heartland acquisition.
Quarter Ended
Quarter Ended
Quarter Ended
Non-interest Expense
3/31/2026
12/31/2025
3/31/2025
(dollars in thousands)
Salaries and Employee Benefits
$
28,312
$
27,620
$
28,040
Occupancy, Furniture and Equipment Expense
5,336
4,965
4,663
FDIC Premiums
1,001
953
900
Data Processing Fees
4,268
3,823
5,495
Professional Fees
1,991
2,162
4,184
Advertising and Promotion
1,616
1,078
1,454
Intangible Amortization
2,471
2,582
2,070
Other Operating Expenses
7,373
6,767
5,976
Total Non-interest Expense
$
52,368
$
49,950
$
52,782
Salaries and benefits increased $692,000, or 2.5%, during the quarter ended March 31, 2026 compared with the fourth quarter of 2025 and increased $272,000, or 1%, compared with the first quarter of 2025. The increase in salaries and benefits during the first quarter of 2026 compared with the fourth quarter of 2025 was largely a seasonal increase related to compensation adjustments and annual resets of certain payroll taxes and retirement matching contributions.
Occupancy, furniture and equipment expense increased $371,000, or 7%, during the first quarter of 2026 compared with the fourth quarter of 2025 and increased $673,000, or 14%, compared to the first quarter of 2025. The increase during the first quarter of 2026 compared with the fourth quarter of 2025 was primarily attributable to seasonal increases related to snow removal and utility costs. The increase during the first quarter of 2026 compared with the first quarter of 2025 was largely attributable to the operating costs of the Heartland branch network.
Data processing fees increased $445,000, or 12%, during the first quarter of 2026 compared with the fourth quarter of 2025 and declined $1,227,000, or 22%, compared with the first quarter of 2025. The increase during the first quarter of 2026 compared with the fourth quarter of 2025 was primarily due to increased software contract costs related to the increased size of the Company and to non-recurring reductions of costs in the fourth quarter of 2025. The decline in the first quarter of 2026 compared with the same period of 2025 was largely driven by acquisition-related costs, which totaled approximately $1,323,000 during the first quarter of 2025.
Professional fees declined $171,000, or 8%, during the first quarter of 2026 compared with the fourth quarter of 2025 and declined $2,193,000, or 52%, compared with the first quarter of 2025. The decline during the first quarter of 2026 compared with the same period of 2025 was largely driven by acquisition-related costs, which totaled approximately $2,661,000 during the first quarter of 2025.
Advertising and promotion expense increased $538,000, or 50%, during the first quarter of 2026 compared with the fourth quarter of 2025 and increased $162,000, or 11%, compared with the first quarter of 2025. The increase during the first quarter of 2026 compared with the fourth quarter of 2025 was largely driven by increased contracted sponsor relationships as well as the timing of certain donations and sponsorships.
Intangible amortization declined $111,000, or 4%, during the first quarter of 2026 compared with the fourth quarter of 2025 and increased $401,000, or 19%, compared with the first quarter of 2025. The increase during the first quarter of 2026 compared with the same period of 2025 was attributable to the Heartland acquisition.
Other operating expenses increased $606,000, or 9%, during the first quarter of 2026 compared with the fourth quarter of 2025 and increased $1,397,000, or 23%, compared with the first quarter of 2025. The increase during the first quarter of 2026 compared with the fourth quarter of 2025 was largely the result of an increase in the reserves related to unfunded loan commitments and an increase in the Ohio financial institution tax. The increase during the first quarter of 2026 compared with the same period of 2025 was primarily attributable to an increase in reserves related to unfunded loan commitments, an increase in the Ohio financial institution tax and increased amortization expense for residential mortgage servicing rights as well as the operating costs of Heartland for a full quarter in 2026.
About German American
German American Bancorp, Inc. (Nasdaq: GABC) is a financial holding company based in Jasper, Indiana. German American, through its banking subsidiary German American Bank, operates 93 banking offices located throughout Indiana (central/southern), Kentucky (northern/central/western), and Ohio (central/ southwest). In Columbus, Ohio and Greater Cincinnati, the Company does business as Heartland Bank, a Division of German American Bank. The Company also owns an investment brokerage subsidiary, German American Investment Services, Inc.
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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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 prolonged periods 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 trade policies of, and other activities undertaken by, governments, including tariffs, which could have a material adverse effect on our customers and, as a result, our business;
k.
changes in financial and capital markets;
l.
capital management activities, including possible future sales of new securities, or possible repurchases or redemptions by German American of outstanding debt or equity securities;
m.
risks of expansion through acquisitions and mergers, including the possibility that the anticipated cost savings and strategic gains, are not realized when expected or at all as a result of 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;
n.
factors driving impairment charges on investments;
o.
the impact, extent and timing of technological changes;
p.
potential cyber-attacks, information security breaches and other criminal activities;
q.
litigation liabilities, including related costs, expenses, settlements and judgments, or the outcome of matters before regulatory agencies, whether pending or commencing in the future;
r.
actions of the Federal Reserve Board;
s.
the regulatory and financial impacts associated with exceeding $10 billion in total assets;
t.
changes in accounting principles and interpretations;
u.
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;
v.
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;
w.
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;
x.
the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends; and
y.
other risk factors expressly identified in German American’s cautionary language included under the headings “Forward-Looking Statements and Associated Risk” and “Risk Factors” in German American’s Annual Report on Form 10-K for the year ended December 31, 2025, and other documents subsequently filed by German American 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, 2026
December 31, 2025
March 31, 2025
ASSETS
Cash and Due from Banks
$
75,956
$
71,428
$
79,113
Short-term Investments
48,471
47,454
363,678
Investment Securities
1,667,283
1,657,747
1,563,037
Loans Held-for-Sale
15,451
7,817
6,713
Loans, Net of Unearned Income
5,849,428
5,875,097
5,646,526
Allowance for Credit Losses
(78,547
)
(77,694
)
(75,158
)
Net Loans
5,770,881
5,797,403
5,571,368
Stock in FHLB and Other Restricted Stock
17,509
17,688
18,105
Premises and Equipment
137,311
139,001
141,387
Goodwill and Other Intangible Assets
406,761
409,260
418,463
Other Assets
242,835
240,982
257,829
TOTAL ASSETS
$
8,382,458
$
8,388,780
$
8,419,693
LIABILITIES
Non-interest-bearing Demand Deposits
$
1,926,859
$
1,944,831
$
1,889,673
Interest-bearing Demand, Savings, and Money Market Accounts
3,768,529
3,755,374
3,788,889
Time Deposits
1,285,520
1,289,537
1,419,323
Total Deposits
6,980,908
6,989,742
7,097,885
Borrowings
169,235
182,683
216,542
Other Liabilities
57,728
54,030
59,224
TOTAL LIABILITIES
7,207,871
7,226,455
7,373,651
SHAREHOLDERS’ EQUITY
Common Stock and Surplus
744,813
744,314
742,431
Retained Earnings
604,515
582,945
513,292
Accumulated Other Comprehensive Income (Loss)
(174,741
)
(164,934
)
(209,681
)
SHAREHOLDERS’ EQUITY
1,174,587
1,162,325
1,046,042
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
8,382,458
$
8,388,780
$
8,419,693
END OF PERIOD SHARES OUTSTANDING
37,565,278
37,495,679
37,481,716
TANGIBLE BOOK VALUE PER SHARE (1)
$
20.44
$
20.08
$
16.74
(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, 2026
December 31, 2025
March 31, 2025
INTEREST INCOME
Interest and Fees on Loans
$
92,273
$
93,785
$
81,505
Interest on Short-term Investments
312
2,585
2,216
Interest and Dividends on Investment Securities
13,123
12,971
12,495
TOTAL INTEREST INCOME
105,708
109,341
96,216
INTEREST EXPENSE
Interest on Deposits
24,698
28,013
27,028
Interest on Borrowings
2,159
2,648
2,616
TOTAL INTEREST EXPENSE
26,857
30,661
29,644
NET INTEREST INCOME
78,851
78,680
66,572
Provision for Credit Losses
2,000
2,225
15,300
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
76,851
76,455
51,272
NON-INTEREST INCOME
Net Gains on Sales of Loans
1,483
1,109
933
Net Gains (Losses) on Securities
—
—
—
Other Non-interest Income
15,743
16,201
13,907
TOTAL NON-INTEREST INCOME
17,226
17,310
14,840
NON-INTEREST EXPENSE
Salaries and Benefits
28,312
27,620
28,040
Other Non-interest Expenses
24,056
22,330
24,742
TOTAL NON-INTEREST EXPENSE
52,368
49,950
52,782
Income before Income Taxes
41,709
43,815
13,330
Income Tax Expense
8,557
8,132
2,813
NET INCOME
$
33,152
$
35,683
$
10,517
BASIC EARNINGS PER SHARE
$
0.88
$
0.95
$
0.30
DILUTED EARNINGS PER SHARE
$
0.88
$
0.95
$
0.30
WEIGHTED AVERAGE SHARES OUTSTANDING
37,517,833
37,493,710
34,680,719
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING
37,517,833
37,493,710
34,680,719
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Three Months Ended
March 31, 2026
December 31, 2025
March 31, 2025
EARNINGS PERFORMANCE RATIOS
Annualized Return on Average Assets
1.58
%
1.67
%
0.55
%
Annualized Return on Average Equity
11.20
%
12.49
%
4.52
%
Annualized Return on Average Tangible Equity (1)
17.08
%
19.49
%
7.10
%
Net Interest Margin
4.26
%
4.13
%
3.96
%
Efficiency Ratio (2)
51.21
%
48.55
%
61.30
%
Net Overhead Expense to Average Earning Assets (3)
1.85
%
1.69
%
2.19
%
ASSET QUALITY RATIOS
Annualized Net Charge-offs to Average Loans
0.08
%
0.04
%
0.04
%
Allowance for Credit Losses to Period End Loans
1.34
%
1.32
%
1.33
%
Non-performing Assets to Period End Assets
0.35
%
0.35
%
0.22
%
Non-performing Loans to Period End Loans
0.51
%
0.50
%
0.33
%
Loans 30-89 Days Past Due to Period End Loans
0.22
%
0.37
%
0.36
%
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA
Average Assets
$
8,380,732
$
8,533,883
$
7,628,810
Average Earning Assets
$
7,596,813
$
7,738,298
$
6,922,503
Average Total Loans
$
5,872,187
$
5,828,461
$
5,135,859
Average Demand Deposits
$
1,910,931
$
1,948,794
$
1,669,722
Average Interest Bearing Liabilities
$
5,225,679
$
5,384,124
$
4,976,746
Average Equity
$
1,184,292
$
1,142,357
$
931,386
Period End Non-performing Assets (4)
$
29,556
$
29,479
$
18,620
Period End Non-performing Loans (5)
$
29,556
$
29,411
$
18,572
Period End Loans 30-89 Days Past Due (6)
$
12,676
$
21,880
$
20,093
Tax-Equivalent Net Interest Income
$
80,201
$
80,256
$
67,891
Net Charge-offs during Period
$
1,147
$
588
$
486
(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 Gains (Losses) 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.
GERMAN AMERICAN BANCORP, INC.
USE OF NON-GAAP FINANCIAL MEASURE
The accounting and reporting policies of German American Bancorp, Inc. (the “Company”) conform to U.S. generally accepted accounting principles (“GAAP”) and general practices within the banking industry. As a supplement to GAAP, the Company has provided certain, non-GAAP financial measures, which it believes are useful because they assist investors in assessing the Company’s operating performance. Specifically, the Company has presented its net income, earnings per share, provision for credit losses, non-interest expense, non-interest income, efficiency ratio, return on average assets, return on average equity, return on tangible equity, and net interest margin on an as adjusted basis for the periods set forth below to reflect the exclusion of the following items: (1) the Current Expected Credit Losses (“CECL”) “Day 2” provision expense for acquired loans that have only insignificant credit deterioration (i.e., non-PCD loans) related to the Heartland merger; (2) non-recurring expenses related to the Heartland merger; and (3) the loss on the extinguishment of debt resulting from the redemption of certain subordinated notes on December 30, 2025. Management believes excluding such items from these financial measures may be useful in assessing the Company’s underlying operational performance since the applicable transactions do not pertain to its core business operations and exclusion may facilitate better comparability between periods. In addition, management believes that by excluding such items the measures are useful to the Company, as well as analysts and investors, in assessing operating performance. Management also believes excluding these items may enhance comparability for peer comparison purposes.
Management believes that it is standard practice in the banking industry to present the efficiency ratio and net interest margin on a fully tax-equivalent basis and that, by doing so, it may enhance comparability for peer comparison purposes. The tax-equivalent adjustment to net interest income (for purposes of the efficiency ratio) and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%.
Although intended to enhance investors’ understanding of the Company’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP.
GERMAN AMERICAN BANCORP, INC.
NON-GAAP RECONCILIATIONS
Non-GAAP Reconciliation – Net Income and Earnings Per Share
Three Months Ended
(Dollars in Thousands, except per share amounts)
03/31/2026
12/31/2025
03/31/2025
Net Income, as reported
$
33,152
$
35,683
$
10,517
Adjustments:
Plus: CECL Day 2 non-PCD provision
—
—
12,150
Plus: Non-recurring merger-related expenses
—
—
4,620
Less: Loss on debt extinguishment
—
(212
)
—
Adjusted Net Income
$
33,152
$
35,895
$
27,287
Weighted Average Shares Outstanding
37,517,833
37,493,710
34,680,719
Earnings Per Share, as reported
$
0.88
$
0.95
$
0.30
Earnings Per Share, as adjusted
$
0.88
$
0.96
$
0.79
Non-GAAP Reconciliation – Non-Interest Income and Non-Interest Expense
Three Months Ended
(Dollars in Thousands)
03/31/2026
12/31/2025
03/31/2025
Non-Interest Income
$
17,226
$
17,310
$
14,840
Less: Loss on debt extinguishment
—
(283
)
—
Adjusted Non-Interest Income
$
17,226
$
17,593
$
14,840
Non-Interest Expense
$
52,368
$
49,950
$
52,782
Less: Non-recurring merger-related expenses
—
—
5,932
Adjusted Non-Interest Expense
$
52,368
$
49,950
$
46,850
GERMAN AMERICAN BANCORP, INC.
NON-GAAP RECONCILIATIONS
Non-GAAP Reconciliation – Efficiency Ratio
Three Months Ended
(Dollars in Thousands)
03/31/2026
12/31/2025
03/31/2025
Adjusted Non-Interest Expense (from above)
$
52,368
$
49,950
$
46,850
Less: Intangible Amortization
2,471
2,582
2,070
Adjusted Non-Interest Expense excluding Intangible Amortization
$
49,897
$
47,368
$
44,780
Net Interest Income
$
78,851
$
78,680
$
66,572
Add: FTE Adjustment
1,350
1,576
1,319
Net Interest Income (FTE)
80,201
80,256
67,891
Adjusted Non-Interest Income (from above)
17,226
17,593
14,840
Total Adjusted Total Revenue
$
97,427
$
97,849
$
82,731
Efficiency Ratio
51.21
%
48.55
%
61.30
%
Adjusted Efficiency Ratio
51.21
%
48.41
%
54.13
%
Non-GAAP Reconciliation – Net Interest Margin
Three Months Ended
(Dollars in Thousands)
03/31/2026
12/31/2025
03/31/2025
Net Interest Income (FTE) from above
$
80,201
$
80,256
$
67,891
Less: Accretion of Discount on Acquired Loans
$
3,456
$
3,966
$
4,192
Adjusted Net Interest Income (FTE)
$
76,745
$
76,290
$
63,699
Average Earning Assets
$
7,596,813
$
7,738,298
$
6,922,503
Net Interest Margin (FTE)
4.26
%
4.13
%
3.96
%
Adjusted Net Interest Margin (FTE)
4.08
%
3.92
%
3.72
%
GERMAN AMERICAN BANCORP, INC.
NON-GAAP RECONCILIATIONS
Non-GAAP Reconciliation – Return on Average Assets
Three Months Ended
(Dollars in Thousands)
03/31/2026
12/31/2025
03/31/2025
Adjusted Net Income
$
33,152
$
35,895
$
27,287
Average Assets
$
8,380,732
$
8,533,883
$
7,628,810
Return on Average Assets, as reported
1.58
%
1.67
%
0.55
%
Return on Average Assets, as adjusted
1.58
%
1.68
%
1.43
%
Non-GAAP Reconciliation – Return on Average Equity
Three Months Ended
(Dollars in Thousands)
3/31/2026
12/31/2025
3/31/2025
Adjusted Net Income
$
33,152
$
35,895
$
27,287
Average Equity
$
1,184,292
$
1,142,357
$
931,386
Return on Average Equity, as reported
11.20
%
12.49
%
4.52
%
Return on Average Equity, as adjusted
11.20
%
12.57
%
11.72
%
Non-GAAP Reconciliation – Return on Tangible Equity
Three Months Ended
(Dollars in Thousands)
3/31/2026
12/31/2025
3/31/2025
Adjusted Net Income
$
33,152
$
35,895
$
27,287
Average Equity, as reported
$
1,184,292
$
1,142,357
$
931,386
Average Intangibles, as reported
407,940
410,150
338,573
Average Tangible Equity
$
776,352
$
732,207
$
592,813
Return on Tangible Equity, as reported
17.08
%
19.49
%
7.10
%
Return on Tangible Equity, as adjusted
17.08
%
19.61
%
18.41
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260427457403/en/
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M. Rust, President and Chief Financial Officer
(812) 482-1314
Original: German American Bancorp, Inc. (GABC) Announces First Quarter Financial Results
US Market News
6 months ago
German American Bancorp, Inc. (GABC) Reports Record Fourth Quarter and Strong Annual 2025 Earnings; Declares 7% Cash Dividend IncreaseJanuary 26, 2026 9:45 PM
Business Wire
Record quarterly earnings of $0.95 per share; $0.96 as adjusted*
Robust 4th quarter return on average assets ("ROAA") of 1.67%; 1.68% as adjusted*
Robust net interest margin* of 4.13%
Low efficiency ratio* of 48.6%
Healthy credit metrics, with annualized net charge-offs of 0.04%
Strong annualized linked quarter loan growth of 7%
Tangible Common Equity* ("TCE") ratio increased to 9.44%; Return on average TCE ("ROATCE")* of 19.49%
21st consecutive year of double digit return on average shareholder equity
Declared 7% cash dividend increase, making it the 14th consecutive year of increased cash dividends
Heartland Bank acquisition continues to integrate seamlessly
Recognized as one of America’s Best Regional Banks in 2026 by Newsweek
German American Bancorp, Inc. (Nasdaq: GABC) (“German American” or the “Company”) reported record earnings for the three months ended December 31, 2025. The Company also announced a 7% increase in its regular quarterly cash dividend, as its Board of Directors declared a regular quarterly cash dividend of $0.31 per share, which will be payable on February 20, 2026 to shareholders of record as of February 10, 2026.
For the three months ended December 31, 2025, the Company reported net income of $35.7 million, or $0.95 per share, reflecting a linked quarter increase of $0.7 million, or approximately 1% on a per share basis, from previous record third quarter 2025 net income of $35.1 million, or $0.94 per share. The Company also reported strong annual net income of $112.6 million, or $3.06 per share, for the year ended December 31, 2025, reflecting a year-over-year increase of $28.8 million, or approximately 8% on a per share basis, from year end December 31, 2024 net income of $83.8 million, or $2.83 per share.
On an adjusted basis*, net income for the three months ended December 31, 2025 was $35.9 million, or $0.96 per share, reflecting a linked quarter increase of $1.5 million, or approximately 4.4% on a per share basis, from previous third quarter net income of $34.4 million, or $0.92 per share. On an adjusted basis*, net income for the year ended December 31, 2025 was $129.7 million, or $3.52 per share, reflecting a year-over-year increase of $45.9 million, or approximately 24% on a per share basis, from year end December 31, 2024.
Profitability and capital measures remained strong as ROAA for the fourth quarter of 2025 was 1.67% (1.68% as adjusted*) and ROATCE was 19.5% (19.6% as adjusted*). These compared to ROAA of 1.68% (1.65% as adjusted*) and ROATCE of 21.1% (20.8% as adjusted*) in the third quarter of 2025.
___________________________________________
* Represents a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Fourth Quarter 2025 highlights include:
Robust net interest margin of 4.13%
7 basis point increase from third quarter 2025
14 basis point reduction in funding costs and 7 basis point decrease in earning asset yields
Strong increase in loan balances during the quarter
End of period loans increased $97 million, or approximately 7% on an annualized basis, with growth coming from all commercial and agriculture categories, as well as consumer-home equity lines
Slight decrease in deposits quarter over linked quarter
Non-interest bearing deposits increased approximately 1.5% on an annualized linked quarter basis and represented 28% of total deposits
Interest bearing demand, savings and money market accounts increased approximately 4.5% on an annualized linked quarter basis
These transactional deposit increases were offset by managed run-off of higher cost retail and jumbo time deposits
Excluding the effects of a $283,000 non-recurring loss on the redemption of subordinated debt on December 30, 2025 and a $975,000 non-recurring gain on the redemption of subordinated debt in the third quarter of 2025, non-interest income remained stable in the fourth quarter 2025, led by an increase of $231,000, or 5%, in wealth management fees
Stable non-interest expenses of $49.9 million
Strong efficiency ratio* of 48.55% for the fourth quarter
Quarter over linked quarter increase in salaries and benefits of approximately 8.5%, driven by incentive compensation tied to record earnings performance, was offset by broad-based cost reductions in all other remaining expense categories
Total allowance for credit losses was $77.7 million, with total quarterly provision expense of $2.2 million as credit metrics remained healthy
Ratio of allowance to total loans of 1.32%
Annualized net charge offs remained minimal at 4 basis points of average loans
Non-performing assets were slightly elevated at 0.35% of period end assets compared to third quarter of 0.28%. The increase was mostly driven by two acquired credits that were adversely classified at acquisition and have subsequently been placed on non-accrual status
Capital ratios remained strong
TCE* of 9.44 %
Tangible book value per share of $20.08; 6.3% increase from linked quarter September 30, 2025
The Company announced a 7% increase to its quarterly cash dividend, making it the 14th consecutive year of increased cash dividends reflecting the Company’s strong operations and healthy capital position
D. Neil Dauby, Chairman and CEO of German American stated, “We are extremely pleased to deliver yet another record quarterly earnings performance for the fourth quarter 2025 and for the year ended December 31, 2025. We have great positive momentum as we head into 2026 and are excited about the long-term potential in connection with a normalizing yield curve and our strong diversified organic growth footprint.”
Dauby also stated, “We continue to add top talent to our relationship-focused team of professionals, and with their dedicated efforts, we are confident that our strong community presence, healthy financial condition and disciplined approach to growth will continue to drive future profitability and long-term shareholder value. We remain excited and committed to the vitality and future growth of our Indiana, Kentucky and Ohio communities.”
Balance Sheet Highlights
On February 1, 2025, the Company completed its acquisition of Heartland BancCorp ("Heartland") through the merger of Heartland with and into the Company. Immediately following completion of the Heartland holding company merger, Heartland’s subsidiary bank, Heartland Bank, was merged with and into the Company’s subsidiary bank, German American Bank (the "Bank"). Heartland, headquartered in Whitehall, Ohio, operated 20 retail banking offices located in Columbus, Ohio and Greater Cincinnati. As of the closing of the transaction, Heartland had total assets of approximately $1.94 billion, total loans of approximately $1.58 billion, and total deposits of approximately $1.73 billion. The Company issued approximately 7.74 million shares of its common stock, and paid approximately $23.1 million in cash, in exchange for all of the issued and outstanding shares of common stock of Heartland and in cancellation of all options to acquire Heartland common stock outstanding as of the effective time of the merger.
Total assets for the Company totaled $8.389 billion at December 31, 2025, representing a decline of $12.5 million compared with September 30, 2025 and an increase of $2.093 billion compared with December 31, 2024. The increase in total assets at December 31, 2025 compared with December 31, 2024 was, in large part, attributable to the Heartland acquisition, with continued organic loan growth also contributing to the increase.
December 31, 2025 total loans increased $96.8 million, or 7% on an annualized basis, compared with September 30, 2025 and increased $1.751 billion compared with December 31, 2024. The increase during the fourth quarter of 2025 compared with September 30, 2025 was broad-based across most segments of the portfolio and throughout the Company's footprint. Commercial and industrial loans increased $33.0 million, or 16% on an annualized basis, commercial real estate loans increased $39.3 million, or 5% on an annualized basis, and agricultural loans reflected a seasonal increase of $16.4 million, or 14% on an annualized basis. Retail loans grew by $8.2 million, or 2% on an annualized basis, due in large part to strong home equity loan originations, which were partially offset by a reduced level of residential mortgage loans. The increase at December 31, 2025 compared with December 31, 2024 was largely due to the acquisition of Heartland in addition to continued organic loan growth throughout the Company's existing market areas. Excluding loans acquired through the Heartland acquisition, total loans increased $261.9 million, or 6%, during 2025.
The composition of the loan portfolio has remained relatively stable and diversified over the past several years. The addition of the Heartland loan portfolio resulted in only modest changes to the overall portfolio composition, most notably in the residential mortgage loan segment. The portfolio is most heavily weighted in commercial real estate loans at 53% of the portfolio, followed by commercial and industrial loans at 14% of the portfolio, residential mortgage loans at 13% of the portfolio (up from 9% at December 31, 2024), agricultural loans at 8% of the portfolio, and home equity loans at 8% 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.
End of Period Loan Balances
12/31/2025
9/30/2025
12/31/2024
(dollars in thousands)
Commercial & Industrial Loans
$
848,240
$
815,222
$
671,038
Commercial Real Estate Loans
3,142,472
3,103,181
2,224,872
Agricultural Loans
489,168
472,807
431,037
Consumer Loans
630,015
603,742
448,872
Residential Mortgage Loans
774,553
792,670
357,448
$
5,884,448
$
5,787,622
$
4,133,267
The Company’s allowance for credit losses totaled $77.7 million at December 31, 2025 compared to $76.1 million at September 30, 2025 and $44.4 million at December 31, 2024. The allowance for credit losses represented 1.32% of period-end loans at both December 31, 2025 and September 30, 2025 and 1.08% of period-end loans at December 31, 2024.
The Company added $32.7 million to the allowance for credit losses in conjunction with the closing of the Heartland acquisition on February 1, 2025, related to the Heartland loan portfolio. Of the increase in the allowance for credit losses for the Heartland portfolio, $16.2 million was recorded through the "Day 2" provision for credit losses under the CECL model. In a transaction like the Heartland merger, the current accounting rules require the acquirer to recognize an allowance for credit losses in the period of acquisition for both purchased credit deterioration (“PCD”) assets and non-PCD assets. The determination of PCD versus non-PCD determines how the allowance for credit loss flows through the financial statements. For PCD assets, the gross-up method includes the impact in the “Day 1” business combination entries with no impact to expense. For non-PCD assets, the impact is reflected outside of the business combination entries (sometimes referred to as “Day 2”) and is reflected in expense.
Under the CECL model, certain acquired loans continue to carry a fair value discount as well as an allowance for credit losses. As of December 31, 2025, the Company held net discounts on acquired loans of $52.8 million, which included $50.7 million related to the Heartland loan portfolio.
Non-performing assets totaled $29.5 million at December 31, 2025, $23.7 million at September 30, 2025, and $11.1 million at December 31, 2024. Non-performing assets represented 0.35% of total assets at December 31, 2025, 0.28% at September 30, 2025 and 0.18% at December 31, 2024. Non-performing loans represented 0.50% of total loans at December 31, 2025, 0.41% at September 30, 2025, and 0.27% at December 31, 2024.
The increase in non-performing assets during the fourth quarter of 2025 was largely related to two commercial relationships acquired in the Heartland transaction. The relationships were identified as adversely classified at the time of acquisition and have subsequently been placed on non-accrual status. The overall increase in non-performing assets at December 31, 2025 compared with year-end 2024 was largely attributable to the Heartland acquisition with non-performing assets from the Heartland acquisition totaling approximately $18.6 million at year-end 2025.
Non-performing Assets
(dollars in thousands)
12/31/2025
9/30/2025
12/31/2024
Non-Accrual Loans
$
29,319
$
23,676
$
10,934
Past Due Loans (90 days or more)
92
—
188
Total Non-Performing Loans
29,411
23,676
11,122
Other Real Estate
68
48
—
Total Non-Performing Assets
$
29,479
$
23,724
$
11,122
December 31, 2025 total deposits declined $24.8 million, or 1% on an annualized basis, compared to September 30, 2025 and increased $1.661 billion compared with December 31, 2024. The increase in total deposits at December 31, 2025 compared with year-end 2024 was largely attributable to the Heartland acquisition. As of December 31, 2025, deposits from the Heartland acquisition totaled $1.559 billion.
The addition of the Heartland deposit portfolio did not result in significant changes to the overall deposit portfolio composition. Notably, non-interest bearing deposits have remained relatively stable as a percent of total deposits at approximately 28% at both December 31, 2025 and September 30, 2025, and 26% at year-end 2024.
End of Period Deposit Balances
12/31/2025
9/30/2025
12/31/2024
(dollars in thousands)
Non-interest-bearing Demand Deposits
$
1,944,831
$
1,938,522
$
1,399,270
IB Demand, Savings, and MMDA Accounts
3,755,374
3,714,191
3,013,204
Time Deposits < $100,000
475,943
502,548
327,080
Time Deposits > $100,000
813,594
859,241
589,521
$
6,989,742
$
7,014,502
$
5,329,075
At December 31, 2025, the capital levels for the Company and 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.
12/31/2025
Ratio
9/30/2025
Ratio
12/31/2024
Ratio
Total Capital (to Risk Weighted Assets)
Consolidated
14.93
%
15.07
%
17.15
%
Bank
13.80
%
14.00
%
15.02
%
Tier 1 (Core) Capital (to Risk Weighted Assets)
Consolidated
14.04
%
13.83
%
15.72
%
Bank
12.91
%
13.10
%
14.23
%
Common Tier 1 (CET 1) Capital Ratio
(to Risk Weighted Assets)
Consolidated
13.52
%
13.30
%
15.02
%
Bank
12.91
%
13.10
%
14.23
%
Tier 1 Capital (to Average Assets)
Consolidated
11.54
%
11.40
%
12.28
%
Bank
10.61
%
10.80
%
11.12
%
Results of Operations Highlights – Year ended December 31, 2025
Net income for the year ended December 31, 2025 totaled $112,635,000, or $3.06 per share, an increase of $28,824,000, or approximately 8% on a per share basis, from the year ended December 31, 2024 net income of $83,811,000, or $2.83 per share. The year ended December 31, 2025 results of operations included Heartland acquisition-related expenses of $6,996,000 ($5,418,000, on an after-tax basis) and the “Day 2” provision for credit losses under the CECL model of $16,200,000 ($12,150,000, on an after-tax basis), as well as a net gain on the redemption of subordinated debentures.
Net income for the year end December 31, 2024 included the sale of the assets of the Company's wholly owned subsidiary German American Insurance, Inc. ("GAI") in the second quarter of 2024, which resulted in an after-tax gain, net of transaction costs, of approximately $27,476,000, or $0.93 per share, and a partial securities portfolio restructuring transaction, also in the second quarter of 2024, resulting in an after-tax loss of $27,189,000, or $0.92 per share.
On an adjusted basis, net income for the year ended December 31, 2025 was $129,684,000, or $3.52 per share, compared with adjusted net income of $83,839,000, or $2.83 per share, for the year ended December 31, 2024. Adjusted net income and adjusted earnings per share are non-GAAP financial measures. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Summary Average Balance Sheet
(Tax-equivalent basis / dollars in thousands)
Year Ended December 31, 2025
Year Ended December 31, 2024
Principal Balance
Income/ Expense
Yield/Rate
Principal Balance
Income/ Expense
Yield/Rate
Assets
Federal Funds Sold and Other
Short-term Investments
$
250,520
$
10,817
4.32
%
$
151,907
$
7,697
5.07
%
Securities
1,598,251
54,299
3.40
%
1,534,433
47,496
3.10
%
Loans and Leases
5,604,879
360,410
6.43
%
4,035,670
241,344
5.98
%
Total Interest Earning Assets
$
7,453,650
$
425,526
5.71
%
$
5,722,010
$
296,537
5.19
%
Liabilities
Demand Deposit Accounts
$
1,851,978
$
1,420,412
IB Demand, Savings, and MMDA Accounts
$
3,733,503
$
65,877
1.76
%
$
3,012,073
$
54,303
1.80
%
Time Deposits
1,329,638
49,215
3.70
%
872,429
36,319
4.16
%
FHLB Advances and Other Borrowings
215,334
10,865
5.05
%
196,480
9,830
5.00
%
Total Interest-Bearing Liabilities
$
5,278,475
$
125,957
2.39
%
$
4,080,982
$
100,452
2.46
%
Cost of Funds
1.69
%
1.76
%
Net Interest Income, Tax-Equivalent Basis*
$
299,569
$
196,085
Net Interest Margin
4.02
%
3.43
%
___________________________________________
* Represents a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
During the year ended December 31, 2025, net interest income, on a non tax-equivalent basis, totaled $294,132,000, an increase of $103,541,000, or 54%, compared to the year ended December 31, 2024 net interest income of $190,591,000. The increase in net interest income for 2025 compared with 2024 was primarily attributable to a higher level of earning assets driven by the Heartland acquisition and an improvement of the Company’s net interest margin.
The tax equivalent net interest margin for the year ended December 31, 2025 was 4.02% compared with 3.43% for the year ended December 31, 2024. The improvement in the net interest margin, excluding the accretion of discount on acquired loans, during 2025 compared with 2024 was the result of improved yields on earning assets (including both loan and security yields) and a lower cost of deposits. The lower cost of deposits was largely driven by the Federal Reserve's lowering of the Federal Funds rates over the last several months of 2024 and again in the latter months of 2025, and the Company's ability to correspondingly lower deposit costs.
The Company's net interest margin and net interest income in both 2025 and 2024 have been impacted by accretion of loan discounts on acquired loans. Accretion of discounts on acquired loans totaled $15,556,000 during the year ended December 31, 2025 and $1,507,000 during the same period of 2024. Accretion of loan discounts on acquired loans contributed approximately 21 basis points to the net interest margin during 2025 and 3 basis points during 2024.
During the year ended December 31, 2025, the Company recorded a provision for credit losses of $19,425,000, as compared to the provision for credit losses of $2,775,000 recorded for the year ended December 31, 2024. The first quarter of 2025 included a provision for credit losses of $16,200,000 related to the “Day 2” adjustment for the Heartland acquisition.
During the year ended December 31, 2025, non-interest income increased $4,652,000, or 7%, compared with the year ended December 31, 2024. The increase during 2025 compared to 2024 was largely the result of the Heartland acquisition combined with an improvement in the Company’s existing fee revenue sources. The year ended December 31, 2024 included the previously mentioned sale of the GAI assets and the securities portfolio restructuring transaction, which each occurred during the second quarter of 2024. On an adjusted basis, non-interest income for the year ended December 31, 2025 was $66,620,000 compared to $54,691,000 for the same period of 2024. Adjusted non-interest income is a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” section in this Management’s Discussion and Analysis for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Year Ended
Year Ended
Non-interest Income
12/31/2025
12/31/2024
(dollars in thousands)
Wealth Management Fees
$
16,808
$
14,416
Service Charges on Deposit Accounts
15,083
12,669
Insurance Revenues
—
4,384
Company Owned Life Insurance
2,555
2,058
Interchange Fee Income
19,598
17,125
Sale of Assets of German American Insurance
—
38,323
Other Operating Income
8,758
5,419
Subtotal
62,802
94,394
Net Gains on Sales of Loans
4,510
3,054
Net Gains on Securities
—
(34,788
)
Total Non-interest Income
$
67,312
$
62,660
Wealth management fees increased $2,392,000, or 17%, during 2025 compared with 2024. The increase during the year ended December 31, 2025 compared with the same period of 2024 was largely attributable to increased assets under management, driven by healthy capital markets throughout 2024 and 2025, and continued strong new business results in addition to the Heartland acquisition.
Service charges on deposit accounts increased $2,414,000, or 19%, during the year ended December 31, 2025, compared with the same period of 2024. The increase during 2025 compared with 2024 was primarily driven by the Heartland acquisition in addition to increased customer utilization of deposit services.
No insurance revenues were recognized during the year ended December 31, 2025 due to the sale of the GAI assets effective June 1, 2024. As a result, insurance revenues declined $4,384,000 during 2025, compared with 2024. As previously discussed, the sale of substantially all of the assets of GAI in June 2024 resulted in net proceeds of $38,323,000.
Interchange fees increased $2,473,000, or 14%, during the year ended December 31, 2025, compared with the same period of 2024. The increase during 2025 compared with 2024 was largely attributable to the Heartland acquisition.
During the year ended December 31, 2025, other operating income increased $3,339,000, or 62%, compared with the same period of 2024. The increase during 2025 compared with 2024 was primarily attributable to the Heartland acquisition.
Net gains on sales of loans increased $1,456,000, or 48%, during the year ended December 31, 2025 compared with the year ended December 31, 2024. The increase during 2025 compared with 2024 was related to the Heartland acquisition and a higher volume of loans sold. Loan sales totaled $193.2 million during 2025 compared with $130.7 million during 2024.
There were no securities transactions during 2025 that resulted in net gains or losses. The net loss on securities during 2024 totaled $34,788,000 which was primarily related to the net loss recognized on the securities restructuring transaction.
During the year ended December 31, 2025, non-interest expense totaled $201,949,000, an increase of $55,572,000, or 38%, compared with the same period of 2024. The primary drivers of the increased operating expenses in 2025 compared with 2024 were the Heartland operating costs and acquisition-related costs.
Each period presented included Heartland acquisition-related expenses, with such amounts being $6,996,000 for the year ended December 31, 2025 and $1,370,000 for the same period of 2024. The year ended December 31, 2024 also included non-recurring professional fees and other costs associated with the GAI asset sale that totaled approximately $1,816,000.
On an adjusted basis, non-interest expense for the year ended December 31, 2025 was $194,953,000 compared to $139,777,000 for the same period of 2024. Adjusted non-interest expense is a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Year Ended
Year Ended
Non-interest Expense
12/31/2025
12/31/2024
(dollars in thousands)
Salaries and Employee Benefits
$
107,742
$
82,257
Occupancy, Furniture and Equipment Expense
19,634
14,944
FDIC Premiums
3,800
2,908
Data Processing Fees
17,579
12,243
Professional Fees
10,418
8,147
Advertising and Promotion
5,153
3,939
Intangible Amortization
10,148
2,032
Other Operating Expenses
27,475
19,907
Total Non-interest Expense
$
201,949
$
146,377
Salaries and benefits increased $25,485,000, or 31%, during the year ended December 31, 2025 compared with the year ended December 31, 2024. The increase in 2025 compared with 2024 was due primarily to the salaries and benefits costs for the Heartland employee base.
Occupancy, furniture and equipment expense increased $4,690,000, or 31%, during the year ended December 31, 2025 compared to the year ended December 30, 2024. The increase during 2025 compared with 2024 was primarily attributable to the operating costs of the Heartland branch network.
Data processing fees increased $5,336,000, or 44%, during the year ended December 31, 2025 compared with the year ended December 31, 2024. The increase during 2025 compared with 2024 was largely driven by the Heartland acquisition including operating costs of the existing Heartland systems and acquisition-related costs.
Professional fees increased $2,271,000, or 28%, during the year ended December 31, 2025 compared with 2024. The increase during 2025 compared with 2024 was primarily attributable to the Heartland acquisition and technology support services.
Intangible amortization increased $8,116,000, or 399%, during the year ended December 31, 2025 compared with the same period of 2024. The increase was attributable to the Heartland acquisition.
Other operating expenses increased $7,568,000, or 38%, during the year ended December 31, 2025 compared with the same period of 2024. The increase was largely attributable to the operating costs of Heartland.
Results of Operations Highlights – Quarter ended December 31, 2025
Net income for the quarter ended December 31, 2025 totaled $35,683,000, or $0.95 per share, an increase of 1% on a per share basis compared with the third quarter 2025 net income of $35,074,000, or $0.94 per share, and an increase of 22% on a per share basis compared with the fourth quarter 2024 net income of $23,211,000, or $0.78 per share.
On an adjusted basis, net income for the fourth quarter of 2025 was $35,895,000, or $0.96 per share, compared with adjusted net income of $34,444,000, or $0.92 per share, for the third quarter of 2025, and $23,419,000, or $0.79 per share, for the fourth quarter of 2024. Adjusted net income and adjusted earnings per share are non-GAAP financial measures. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Summary Average Balance Sheet
(Tax-equivalent basis / dollars in thousands)
Quarter Ended
Quarter Ended
Quarter Ended
December 31, 2025
September 30, 2025
December 31, 2024
Principal Balance
Income/ Expense
Yield/ Rate
Principal Balance
Income/ Expense
Yield/ Rate
Principal Balance
Income/ Expense
Yield/ Rate
Assets
Federal Funds Sold and Other
Short-term Investments
$
260,338
$
2,585
3.94
%
$
187,648
$
2,084
4.41
%
$
238,883
$
2,792
4.65
%
Securities
1,649,499
13,890
3.37
%
1,584,261
13,622
3.44
%
1,545,772
12,579
3.26
%
Loans and Leases
5,828,461
94,442
6.44
%
5,766,875
93,664
6.45
%
4,094,333
62,356
6.06
%
Total Interest Earning Assets
$
7,738,298
$
110,917
5.70
%
$
7,538,784
$
109,370
5.77
%
$
5,878,988
$
77,727
5.27
%
Liabilities
Demand Deposit Accounts
$
1,948,794
$
1,912,208
$
1,422,400
IB Demand, Savings, and MMDA Accounts
$
3,828,648
$
15,745
1.63
%
$
3,753,235
$
17,086
1.81
%
$
3,058,257
$
13,638
1.77
%
Time Deposits
1,335,506
12,268
3.64
%
1,330,944
12,330
3.68
%
911,613
9,235
4.03
%
FHLB Advances and Other Borrowings
219,970
2,648
4.78
%
216,460
2,956
5.42
%
214,915
2,650
4.91
%
Total Interest-Bearing Liabilities
$
5,384,124
$
30,661
2.26
%
$
5,300,639
$
32,372
2.42
%
$
4,184,785
$
25,523
2.43
%
Cost of Funds
1.57
%
1.71
%
1.73
%
Net Interest Income, Tax-Equivalent Basis*
$
80,256
$
76,998
$
52,204
Net Interest Margin
4.13
%
4.06
%
3.54
%
___________________________________________
* Represents a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
During the fourth quarter of 2025, net interest income, on a non tax-equivalent basis, totaled $78,680,000, an increase of $2,955,000, or 4%, compared to the third quarter of 2025 net interest income of $75,725,000 and an increase of $27,648,000, or 54%, compared to the fourth quarter of 2024 net interest income of $51,032,000.
The increase in net interest income during the fourth quarter of 2025 compared with the third quarter of 2025 was primarily driven by improvement in the Company's net interest margin along with continued growth of earning assets. The increase in net interest income during the fourth quarter of 2025 compared with the fourth quarter of 2024 was primarily attributable to a higher level of average earning assets driven in large part by the Heartland acquisition and improvement of the Company's net interest margin.
The tax equivalent net interest margin for the quarter ended December 31, 2025 was 4.13% compared with 4.06% in the third quarter of 2025 and 3.54% in the fourth quarter of 2024. The continued improvement in the net interest margin during the fourth quarter of 2025 compared with the third quarter of 2025 was driven by a lower cost of funds, primarily attributable to lower deposit costs. The improvement in the net interest margin, excluding the accretion of discount on acquired loans, during the fourth quarter of 2025 compared with the fourth quarter of 2024 was largely driven by an improved yield on earning assets (including both loan and security yields) and a lower cost of deposits.
The Company's net interest margin and net interest income in all periods presented have been impacted by accretion of loan discounts on acquired loans. Accretion of discounts on acquired loans totaled $3,966,000 during the fourth quarter of 2025, $3,914,000 during the third quarter of 2025, and $617,000 during the fourth quarter of 2024. Accretion of loan discounts on acquired loans contributed approximately 21 basis points to the net interest margin in the both the third and fourth quarters of 2025 and 4 basis points in the fourth quarter of 2024.
During the quarter ended December 31, 2025, the Company recorded a provision for credit losses of $2,225,000 compared with a provision for credit losses of $700,000 in the third quarter of 2025 and a provision for credit losses of $625,000 during the fourth quarter of 2024. Net charge-offs totaled $588,000, or 4 basis points on an annualized basis, of average loans outstanding during the fourth quarter of 2025 compared with $748,000, or 5 basis points on an annualized basis, of average loans during the third quarter of 2025 and $313,000, or 3 basis points on an annualized basis, of average loans during the fourth quarter of 2024.
During the quarter ended December 31, 2025, non-interest income totaled $17,310,000, a decline of $1,119,000, or 6%, compared with the third quarter of 2025 and an increase of $3,196,000, or 23%, compared with the fourth quarter of 2024. The decline in non-interest income during the fourth quarter of 2025 compared with the third quarter of 2025 was largely driven by a $283,000 loss on the extinguishment of debt resulting from the redemption of $40.0 million of the Company's fixed-to-floating rate subordinated notes during the fourth quarter of 2025 and a $975,000 gain on the extinguishment of debt resulting from the redemption of $24.3 million of fixed-to-floating rate subordinated notes during the third quarter of 2025. The increase during the fourth quarter of 2025 compared to the same period of 2024 was largely the result of the Heartland acquisition and improvement of the Company's existing fee revenue generation.
Excluding the loss and gain on the extinguishment of debt discussed above, non-interest income on an adjusted basis for the fourth quarter of 2025 was $17,593,000 and $17,454,000 for the third quarter of 2025. Adjusted non-interest income is a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
Quarter Ended
Quarter Ended
Quarter Ended
Non-interest Income
12/31/2025
9/30/2025
12/31/2024
(dollars in thousands)
Wealth Management Fees
$
4,519
$
4,288
$
3,687
Service Charges on Deposit Accounts
3,956
3,927
3,344
Insurance Revenues
—
—
—
Company Owned Life Insurance
647
630
616
Interchange Fee Income
5,033
5,087
4,244
Sale of Assets of German American Insurance
—
—
—
Other Operating Income
2,046
3,308
1,593
Subtotal
16,201
17,240
13,484
Net Gains on Sales of Loans
1,109
1,189
630
Net Gains (Losses) on Securities
—
—
—
Total Non-interest Income
$
17,310
$
18,429
$
14,114
Wealth management fees increased $231,000, or 5%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $832,000, or 23%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the third quarter of 2025 was largely attributable to strong new business growth resulting in increased assets under management. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was also largely attributable to increased assets under management driven by healthy capital markets throughout 2024 and much of 2025, and continued strong new business results in addition to the Heartland acquisition.
Service charges on deposit accounts remained relatively stable, increasing 1%, during the quarter ended December 31, 2025 compared with the third quarter of 2025 and increased $612,000, or 18%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was primarily driven by the Heartland acquisition in addition to increased customer utilization of deposit services.
Interchange fees remained relatively stable, declining 1%, during the quarter ended December 31, 2025 compared with the third quarter of 2025 and increased $789,000, or 19%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was largely attributable to the Heartland acquisition.
Other operating income declined $1,262,000, or 38%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $453,000, or 28%, compared with the fourth quarter of 2024. The decline in non-interest income during the fourth quarter of 2025 compared with the third quarter of 2025 was largely driven by the previously discussed $283,000 loss on the extinguishment of debt during the fourth quarter of 2025 and the $975,000 gain on the extinguishment of debt during the third quarter of 2025.
Net gains on sales of loans declined $80,000, or 7%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $479,000, or 76%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was largely related to the Heartland acquisition and a higher volume of loans sold. Loan sales totaled $48.2 million during the fourth quarter of 2025 compared with $55.5 million during the third quarter of 2025 and $33.5 million during the fourth quarter of 2024.
During the quarter ended December 31, 2025, non-interest expense totaled $49,950,000, an increase of $250,000, or less than 1%, compared with the third quarter of 2025, and an increase of $14,110,000, or 39%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was primarily driven by the operating costs associated with the Heartland acquisition.
Quarter Ended
Quarter Ended
Quarter Ended
Non-interest Expense
12/31/2025
9/30/2025
12/31/2024
(dollars in thousands)
Salaries and Employee Benefits
$
27,620
$
25,444
$
20,404
Occupancy, Furniture and Equipment Expense
4,965
5,255
3,773
FDIC Premiums
953
1,059
714
Data Processing Fees
3,823
4,175
3,257
Professional Fees
2,162
1,960
1,178
Advertising and Promotion
1,078
1,321
951
Intangible Amortization
2,582
2,693
438
Other Operating Expenses
6,767
7,793
5,124
Total Non-interest Expense
$
49,950
$
49,700
$
35,839
Salaries and benefits increased $2,176,000, or 9%, during the quarter ended December 31, 2025 compared with the third quarter of 2025 and increased $7,216,000, or 35%, compared with the fourth quarter of 2024. The increase in salaries and benefits during the fourth quarter of 2025 compared with the third quarter of 2025 was attributable to an increased incentive compensation cost and health insurance costs. The increase in the fourth quarter of 2025 compared with the fourth quarter of 2024 was largely due to the salaries and benefits costs for the Heartland employee base as well as increased incentive compensation plan costs.
Occupancy, furniture and equipment expense declined $290,000, or 6%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $1,192,000, or 17%, compared to the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was primarily attributable to the operating costs of the Heartland branch network.
Data processing fees declined $352,000, or 8%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $566,000, or 32%, compared with the third quarter of 2024. The decline during the fourth quarter of 2025 compared with the third quarter of 2025 was primarily related to non-recurring elevated costs in the third quarter of 2025. The increase during the fourth quarter of 2025 compared with the same period of 2024 was largely driven by operating costs associated with the Heartland acquisition and continued enhancements to existing data systems and processes.
Professional fees increased $202,000, or 10%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $984,000, or 84%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the same period of 2024 was largely driven by the Heartland acquisition and technology support services.
Intangible amortization declined $111,000, or 4%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $2,144,000, or 490%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the same period of 2024 was attributable to the Heartland acquisition.
Other operating expenses declined $1,026,000, or 13%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $1,643,000, or 32%, compared with the fourth quarter of 2024. The decline during the fourth quarter of 2025 compared with the third quarter of 2025 was largely the result of a decline in amortization expense for residential mortgage servicing rights and a reduction of reserves related to unfunded loan commitments. The increase in the fourth quarter of 2025 compared to the fourth quarter of 2024 was largely attributable to operating costs of Heartland.
About German American
German American Bancorp, Inc. (Nasdaq: GABC) is a financial holding company based in Jasper, Indiana. German American, through its banking subsidiary German American Bank, operates 94 banking offices located throughout Indiana (central/southern), Kentucky (northern/central/western), and Ohio (central/ southwest). In Columbus, Ohio and Greater Cincinnati, the Company does business as Heartland Bank, a Division of German American Bank. The Company also owns an investment brokerage subsidiary, German American Investment Services, Inc.
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, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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, including the possibility that the anticipated cost savings and strategic gains, are not realized when expected or at all as a result of 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;
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;
w.
changes to the fair value estimates used by German American in accounting for its acquisition of Heartland, which preliminary valuations must be finalized no later than January 31, 2026; and
x.
other risk factors expressly identified in German American’s cautionary language included under the headings “Forward-Looking Statements and Associated Risk” and “Risk Factors” in German American’s Annual Report on Form 10-K for the year ended December 31, 2024, and other documents subsequently filed by German American 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
December 31, 2025
September 30, 2025
December 31, 2024
ASSETS
Cash and Due from Banks
$
71,428
$
112,718
$
69,249
Short-term Investments
47,454
143,430
120,043
Investment Securities
1,657,747
1,618,370
1,517,640
Loans Held-for-Sale
7,817
10,058
8,239
Loans, Net of Unearned Income
5,875,097
5,778,505
4,124,902
Allowance for Credit Losses
(77,694
)
(76,057
)
(44,436
)
Net Loans
5,797,403
5,702,448
4,080,466
Stock in FHLB and Other Restricted Stock
17,688
17,856
14,423
Premises and Equipment
139,001
139,850
104,045
Goodwill and Other Intangible Assets
409,260
411,656
183,043
Other Assets
240,982
244,862
198,762
TOTAL ASSETS
$
8,388,780
$
8,401,248
$
6,295,910
LIABILITIES
Non-interest-bearing Demand Deposits
$
1,944,831
$
1,938,522
$
1,399,270
Interest-bearing Demand, Savings, and Money Market Accounts
3,755,374
3,714,191
3,013,204
Time Deposits
1,289,537
1,361,789
916,601
Total Deposits
6,989,742
7,014,502
5,329,075
Borrowings
182,683
211,016
210,131
Other Liabilities
54,030
56,007
41,637
TOTAL LIABILITIES
7,226,455
7,281,525
5,580,843
SHAREHOLDERS’ EQUITY
Common Stock and Surplus
744,314
744,017
421,943
Retained Earnings
582,945
558,086
513,588
Accumulated Other Comprehensive Income (Loss)
(164,934
)
(182,380
)
(220,464
)
SHAREHOLDERS’ EQUITY
1,162,325
1,119,723
715,067
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
8,388,780
$
8,401,248
$
6,295,910
END OF PERIOD SHARES OUTSTANDING
37,495,679
37,493,333
29,677,093
TANGIBLE BOOK VALUE PER SHARE (1)
$
20.08
$
18.89
$
17.93
(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
Year Ended
December 31, 2025
September 30, 2025
December 31, 2024
December 31, 2025
December 31, 2024
INTEREST INCOME
Interest and Fees on Loans
$
93,785
$
93,305
$
62,045
$
358,597
$
240,241
Interest on Short-term Investments
2,585
2,084
2,792
10,817
7,697
Interest and Dividends on Investment Securities
12,971
12,708
11,718
50,675
43,105
TOTAL INTEREST INCOME
109,341
108,097
76,555
420,089
291,043
INTEREST EXPENSE
Interest on Deposits
28,013
29,416
22,873
115,092
90,622
Interest on Borrowings
2,648
2,956
2,650
10,865
9,830
TOTAL INTEREST EXPENSE
30,661
32,372
25,523
125,957
100,452
NET INTEREST INCOME
78,680
75,725
51,032
294,132
190,591
Provision for Credit Losses
2,225
700
625
19,425
2,775
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
76,455
75,025
50,407
274,707
187,816
NON-INTEREST INCOME
Net Gains on Sales of Loans
1,109
1,189
630
4,510
3,054
Net Gains (Losses) on Securities
—
—
—
—
(34,788
)
Other Non-interest Income
16,201
17,240
13,484
62,802
94,394
TOTAL NON-INTEREST INCOME
17,310
18,429
14,114
67,312
62,660
NON-INTEREST EXPENSE
Salaries and Benefits
27,620
25,444
20,404
107,742
82,257
Other Non-interest Expenses
22,330
24,256
15,435
94,207
64,120
TOTAL NON-INTEREST EXPENSE
49,950
49,700
35,839
201,949
146,377
Income before Income Taxes
43,815
43,754
28,682
140,070
104,099
Income Tax Expense
8,132
8,680
5,471
27,435
20,288
NET INCOME
$
35,683
$
35,074
$
23,211
$
112,635
$
83,811
BASIC EARNINGS PER SHARE
$
0.95
$
0.94
$
0.78
$
3.06
$
2.83
DILUTED EARNINGS PER SHARE
$
0.95
$
0.94
$
0.78
$
3.06
$
2.83
WEIGHTED AVERAGE SHARES OUTSTANDING
37,493,710
37,493,028
29,678,443
36,796,342
29,656,416
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING
37,493,710
37,493,028
29,678,443
36,796,342
29,656,416
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Three Months Ended
Year Ended
December 31, 2025
September 30, 2025
December 31, 2024
December 31, 2025
December 31, 2024
EARNINGS PERFORMANCE RATIOS
Annualized Return on Average Assets
1.67
%
1.68
%
1.45
%
1.37
%
1.34
%
Annualized Return on Average Equity
12.49
%
13.00
%
12.67
%
10.72
%
12.22
%
Annualized Return on Average Tangible Equity (1)
19.49
%
21.14
%
16.90
%
17.19
%
16.72
%
Net Interest Margin
4.13
%
4.06
%
3.54
%
4.02
%
3.43
%
Efficiency Ratio (2)
48.55
%
49.26
%
53.38
%
52.28
%
49.18
%
Net Overhead Expense to Average Earning Assets (3)
1.69
%
1.66
%
1.48
%
1.81
%
1.46
%
ASSET QUALITY RATIOS
Annualized Net Charge-offs to Average Loans
0.04
%
0.05
%
0.03
%
0.05
%
0.05
%
Allowance for Credit Losses to Period End Loans
1.32
%
1.32
%
1.08
%
Non-performing Assets to Period End Assets
0.35
%
0.28
%
0.18
%
Non-performing Loans to Period End Loans
0.50
%
0.41
%
0.27
%
Loans 30-89 Days Past Due to Period End Loans
0.37
%
0.30
%
0.33
%
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA
Average Assets
$
8,533,883
$
8,350,565
$
6,384,219
$
8,237,194
$
6,233,753
Average Earning Assets
$
7,738,298
$
7,538,784
$
5,878,988
$
7,453,650
$
5,722,010
Average Total Loans
$
5,828,461
$
5,766,875
$
4,094,333
$
5,604,879
$
4,035,670
Average Demand Deposits
$
1,948,794
$
1,912,208
$
1,422,400
$
1,851,978
$
1,420,412
Average Interest Bearing Liabilities
$
5,384,124
$
5,300,639
$
4,184,785
$
5,278,475
$
4,080,982
Average Equity
$
1,142,357
$
1,079,359
$
732,698
$
1,050,990
$
685,862
Period End Non-performing Assets (4)
$
29,479
$
23,724
$
11,122
Period End Non-performing Loans (5)
$
29,411
$
23,676
$
11,122
Period End Loans 30-89 Days Past Due (6)
$
21,880
$
17,091
$
13,727
Tax-Equivalent Net Interest Income
$
80,256
$
76,998
$
52,204
$
299,569
$
196,085
Net Charge-offs during Period
$
588
$
748
$
313
$
2,670
$
2,104
(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 Gains (Losses) 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.
The accounting and reporting policies of German American Bancorp, Inc. (the “Company”) conform to U.S. generally accepted accounting principles (“GAAP”) and general practices within the banking industry. As a supplement to GAAP, the Company has provided certain, non-GAAP financial measures, which it believes are useful because they assist investors in assessing the Company’s operating performance. Specifically, the Company has presented its net income, earnings per share, provision for credit losses, non-interest expense, non-interest income, efficiency ratio, return on average assets, return on average equity, return on tangible equity, and net interest margin on an as adjusted basis for the periods set forth below to reflect the exclusion of the following items: (1) the Current Expected Credit Losses (“CECL”) “Day 2” provision expense for acquired loans that have only insignificant credit deterioration (i.e., non-PCD loans) related to the Heartland merger; (2) non-recurring expenses related to the Heartland merger; (3) the gain and loss on the extinguishment of debt resulting from the redemption of certain subordinated notes on September 15, 2025 and December 30, 2025, respectively; (4) the operating results for German American Insurance, Inc. (“GAI”), whose assets were sold effective June 1, 2024; (5) the gain on the sale of GAI assets; and (6) the loss related to the securities portfolio restructuring transaction that occurred in the second quarter of 2024. Management believes excluding such items from these financial measures may be useful in assessing the Company’s underlying operational performance since the applicable transactions do not pertain to its core business operations and exclusion may facilitate better comparability between periods. In addition, management believes that by excluding such items the measures are useful to the Company, as well as analysts and investors, in assessing operating performance. Management also believes excluding these items may enhance comparability for peer comparison purposes.
Management believes that it is standard practice in the banking industry to present the efficiency ratio and net interest margin on a fully tax-equivalent basis and that, by doing so, it may enhance comparability for peer comparison purposes. The tax-equivalent adjustment to net interest income (for purposes of the efficiency ratio) and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%.
Although intended to enhance investors’ understanding of the Company’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP.
Non-GAAP Reconciliation – Net Income and Earnings Per Share
Three Months Ended
Year Ended
(Dollars in Thousands, except per share amounts)
12/31/2025
09/30/2025
12/31/2024
12/31/2025
12/31/2024
Net Income, as reported
$
35,683
$
35,074
$
23,211
$
112,635
$
83,811
Adjustments:
Plus: CECL Day 2 non-PCD provision
—
—
—
12,150
—
Plus: Non-recurring merger-related expenses
—
101
154
5,418
1,082
Less: Gain (loss) on debt extinguishment
(212
)
731
—
519
—
Less: Loss on securities restructuring
—
—
—
—
(27,189
)
Less: Income from GAI operations
—
—
(54
)
—
767
Less: Gain on sale of GAI assets
—
—
—
—
27,476
Adjusted Net Income
$
35,895
$
34,444
$
23,419
$
129,684
$
83,839
Weighted Average Shares Outstanding
37,493,710
37,493,028
29,678,443
36,796,342
29,656,416
Earnings Per Share, as reported
$
0.95
$
0.94
$
0.78
$
3.06
$
2.83
Earnings Per Share, as adjusted
$
0.96
$
0.92
$
0.79
$
3.52
$
2.83
Non-GAAP Reconciliation – Non-Interest Income and Non-Interest Expense
Three Months Ended
Year Ended
(Dollars in Thousands)
12/31/2025
09/30/2025
12/31/2024
12/31/2025
12/31/2024
Non-Interest Income
$
17,310
$
18,429
$
14,114
$
67,312
$
62,660
Less: Gains (Losses) on securities
—
—
—
—
105
Less: Loss on securities restructuring
—
—
—
—
(34,893
)
Less: Gain (loss) on debt extinguishment
(283
)
975
—
692
—
Less: Revenue from GAI operations
—
—
—
—
4,434
Less: Gain on sale of GAI assets
—
—
—
—
38,323
Adjusted Non-Interest Income
$
17,593
$
17,454
$
14,114
$
66,620
$
54,691
Non-Interest Expense
$
49,950
$
49,700
$
35,839
$
201,949
$
146,377
Less: Non-recurring merger-related expenses
—
135
198
6,996
1,370
Less: Expense from GAI operations
—
—
72
—
3,414
Less: Expense from sale of GAI assets
—
—
—
—
1,816
Adjusted Non-Interest Expense
$
49,950
$
49,565
$
35,569
$
194,953
$
139,777
Non-GAAP Reconciliation – Efficiency Ratio
Three Months Ended
Year Ended
(Dollars in Thousands)
12/31/2025
09/30/2025
12/31/2024
12/31/2025
12/31/2024
Adjusted Non-Interest Expense (from above)
$
49,950
$
49,565
$
35,569
$
194,953
$
139,777
Less: Intangible Amortization
2,582
2,693
438
10,148
2,032
Adjusted Non-Interest Expense excluding Intangible Amortization
$
47,368
$
46,872
$
35,131
$
184,805
$
137,745
Net Interest Income
$
78,680
$
75,725
$
51,032
$
294,132
$
190,591
Add: FTE Adjustment
1,576
1,273
1,172
5,437
5,494
Net Interest Income (FTE)
80,256
76,998
52,204
299,569
196,085
Adjusted Non-Interest Income (from above)
17,593
17,454
14,114
66,620
54,691
Total Adjusted Total Revenue
$
97,849
$
94,452
$
66,318
$
366,189
$
250,776
Efficiency Ratio
48.55
%
49.26
%
53.38
%
52.28
%
49.18
%
Adjusted Efficiency Ratio
48.41
%
49.63
%
52.97
%
50.47
%
54.93
%
Non-GAAP Reconciliation – Net Interest Margin
Three Months Ended
Year Ended
(Dollars in Thousands)
12/31/2025
09/30/2025
12/31/2024
12/31/2025
12/31/2024
Net Interest Income (FTE) from above
$
80,256
$
76,998
$
52,204
$
299,569
$
196,085
Less: Accretion of Discount on Acquired Loans
$
3,966
$
3,914
$
617
$
15,556
$
1,507
Adjusted Net Interest Income (FTE)
$
76,290
$
73,084
$
51,587
$
284,013
$
194,578
Average Earning Assets
$
7,738,298
$
7,538,784
$
5,878,988
$
7,453,650
$
5,722,010
Net Interest Margin (FTE)
4.13
%
4.06
%
3.54
%
4.02
%
3.43
%
Adjusted Net Interest Margin (FTE)
3.92
%
3.85
%
3.50
%
3.81
%
3.40
%
Non-GAAP Reconciliation – Return on Average Assets
Three Months Ended
Year Ended
(Dollars in Thousands)
12/31/2025
09/30/2025
12/31/2024
12/31/2025
12/31/2024
Adjusted Net Income
$
35,895
$
34,444
$
23,419
$
129,684
$
83,839
Average Assets
$
8,533,883
$
8,350,565
$
6,384,219
$
8,237,194
$
6,233,753
Return on Average Assets, as reported
1.67
%
1.68
%
1.45
%
1.37
%
1.34
%
Return on Average Assets, as adjusted
1.68
%
1.65
%
1.47
%
1.57
%
1.34
%
Non-GAAP Reconciliation – Return on Average Equity
Three Months Ended
Year Ended
(Dollars in Thousands)
12/31/2025
9/30/2025
12/31/2024
12/31/2025
12/31/2024
Adjusted Net Income
$
35,895
$
34,444
$
23,419
$
129,684
$
83,839
Average Equity
$
1,142,357
$
1,079,359
$
732,698
$
1,050,990
$
685,862
Return on Average Equity, as reported
12.49
%
13.00
%
12.67
%
10.72
%
12.22
%
Return on Average Equity, as adjusted
12.57
%
12.76
%
12.79
%
12.34
%
12.22
%
Non-GAAP Reconciliation – Return on Tangible Equity
Three Months Ended
Year Ended
(Dollars in Thousands)
12/31/2025
9/30/2025
12/31/2024
12/31/2025
12/31/2024
Adjusted Net Income
$
35,895
$
34,444
$
23,419
$
129,684
$
83,839
Average Equity, as reported
$
1,142,357
$
1,079,359
$
732,698
$
1,050,990
$
685,862
Average Intangibles, as reported
410,150
415,666
183,274
395,603
184,664
Average Tangible Equity
$
732,207
$
663,693
$
549,424
$
655,387
$
501,198
Return on Tangible Equity, as reported
19.49
%
21.14
%
16.90
%
17.19
%
16.72
%
Return on Tangible Equity, as adjusted
19.61
%
20.76
%
17.05
%
19.79
%
16.73
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20260126295976/en/
D. Neil Dauby, Chairman and Chief Executive Officer
Bradley M Rust, President and Chief Financial Officer
(812) 482-1314
Original: German American Bancorp, Inc. (GABC) Reports Record Fourth Quarter and Strong Annual 2025 Earnings; Declares 7% Cash Dividend Increase
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