German American Bancorp, Inc. (Nasdaq: GABC) reported solid annual
earnings of $85.9 million, or $2.91 per share, for the year ended
December 31, 2023, representing the second highest level of
earnings per share in the Company’s history. This level of reported
annual earnings resulted in a 14.7% return on average shareholders’
equity, marking the 19th consecutive fiscal year in which the
Company has delivered a double-digit return on shareholders’
equity. The Company also announced the declaration of an 8%
increase in its quarterly cash dividend, marking the 12th
consecutive year of increased cash dividends.
The Company’s 2023 reported net income
represented an increase of $4.1 million, or approximately 5% on a
per share basis, over 2022 net income of $81.8 million, or $2.78
per share, which was impacted by the one-time merger costs related
to the January 1, 2022 acquisition of Citizens Union Bancorp of
Shelbyville, Inc.
The 2023 annual operating performance was
highlighted by an expanded net interest margin of 13 basis points,
which increased from 3.45% to 3.58% as rising deposit costs from
continued Federal Reserve rate increases and shifting of deposit
composition did not escalate meaningfully until the second half of
2023. The re-mixing of earning assets from the securities portfolio
into the higher yielding loan portfolio also contributed positively
to the increased margin.
In addition, the 2023 year was marked by solid
organic loan growth across most lending categories, continued
strong credit metrics, solid gains in non-interest income led by
wealth management and interchange fees, and ongoing optimization of
our non-interest expenses. The Company’s operating results were
also positively impacted by the execution of qualitative strategic
initiatives such as meaningful talent acquisitions and ongoing
technology/digital investment.
Given the tumultuous year in the banking
industry led by economic uncertainty and multiple bank failures,
German American remained well positioned for long term success with
strong capital levels and solid liquidity. The Company’s combined
enterprise, which encompasses 75 banking offices across two
contiguous states, continues to benefit from its diversified
footprint of rural, suburban and urban markets providing a strong
deposit franchise base as well as significant organic growth
opportunities.
On a quarter over quarter basis, fourth quarter
2023 net income of $21.5 million and earnings per share of $0.73
were consistent with third quarter 2023 net income of $21.5
million, or $0.73 per share. Net interest margin declined from
3.57% to 3.43%, or 14 basis points, quarter over quarter. This
compression was driven by a lower level of accretion of discounts
on acquired loans that negatively impacted the net interest margin
by 7 basis points and an overall increase in the cost of funds. The
margin compression was partially offset by exceptional credit
metrics, with no provision for credit losses being taken in the
fourth quarter, largely as a result of a fully-reserved,
non-performing commercial relationship being paid off.
In addition, the fourth quarter 2023 operating
performance was highlighted by strong organic loan and deposit
growth. Total loans increased $84 million, or approximately 9% on
an annualized basis, and were broad-based across most loan
categories and markets. Deposits increased $117 million, or 2% on a
linked quarter basis, with non-interest bearing accounts remaining
at a solid 28.4% of total deposits. Non-interest income growth of
5% and flat non-interest expenses, in each case on a linked-quarter
basis, also contributed to the solid fourth quarter operating
performance.
The Company also announced an 8% increase in the
level of its regular quarterly cash dividend, as its Board of
Directors declared a regular quarterly cash dividend of $0.27 per
share, which will be payable on February 20, 2024 to shareholders
of record as of February 10, 2024.
D. Neil Dauby, German American’s Chairman &
CEO stated, “We are extremely pleased with our operating results in
2023, especially given the challenging economic environment, as we
continue our decades long trend of exceptional financial
performance. Thanks to the dedicated efforts of our
relationship-focused team of professionals, we are confident that
our strong community presence, healthy financial condition, and
disciplined approach to risk management will continue to drive
future profitability. We remain excited and committed to the
vitality and future growth of our Indiana and Kentucky
communities.”
Balance Sheet Highlights
Total assets for the Company totaled $6.152
billion at December 31, 2023, representing an increase of $146.5
million compared with September 30, 2023 and a decline of $3.8
million compared with December 31, 2022. The increase in total
assets at December 31, 2023 compared with September 30, 2023 was
largely related to an increase in the market value of the
securities portfolio and an increase in total loans.
Securities available for sale increased $119.9
million as of December 31, 2023 compared with September 30, 2023
and declined $164.8 million compared with December 31, 2022. The
increase in the available for sale securities portfolio during the
fourth quarter of 2023 compared with the end of the third quarter
of 2023 was largely attributable to fair value adjustments on the
portfolio related to a decline in market interest rates while the
decline from the fourth quarter of 2022 was primarily the result of
the Company's utilization of cash flows from the securities
portfolio to fund loan growth. Total cash flow generated from the
portfolio totaled approximately $31.5 million during the fourth
quarter of 2023, reflecting principal and interest payments.
Current projections indicate approximately $150.0 million in
principal and interest cash flows from the portfolio over the next
twelve months with rates unchanged.
December 31, 2023 total loans increased $84.3
million, or 9% on an annualized basis, compared with September 30,
2023 and increased $189.3 million, or 5%, compared with year-end
2022. The increase during the fourth quarter of 2023 compared with
September 30, 2023 was broad-based across most segments of the
portfolio. Commercial real estate loans increased $44.9 million, or
9% on an annualized basis, while agricultural loans grew $25.7
million, or 26% on an annualized basis, and retail loans grew by
$18.1 million, or 10% on an annualized basis. Partially offsetting
these increases was a modest decline in commercial and industrial
loans of $4.4 million, or 3% on an annualized basis, as line of
credit utilization remains muted.
The composition of the loan portfolio has
remained relatively stable and diversified over the past several
years, including 2023. The portfolio is most heavily concentrated
in commercial real estate loans at 53% of the portfolio, followed
by commercial and industrial loans at 17% of the portfolio, and
agricultural loans at 11% of the portfolio. The Company’s
commercial lending is extended to various industries, including
multi-family housing and lodging, agribusiness and manufacturing,
as well as health care, wholesale, and retail services. The
Company's commercial real estate portfolio has limited exposure to
office real estate, with office exposure totaling approximately 4%
of the total loan portfolio.
End of Period Loan
Balances |
|
12/31/2023 |
|
9/30/2023 |
|
12/31/2022 |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial & Industrial Loans |
|
$ |
661,529 |
|
|
$ |
665,892 |
|
|
$ |
676,502 |
|
Commercial Real Estate
Loans |
|
|
2,121,835 |
|
|
|
2,076,962 |
|
|
|
1,966,884 |
|
Agricultural Loans |
|
|
423,803 |
|
|
|
398,109 |
|
|
|
417,413 |
|
Consumer Loans |
|
|
407,889 |
|
|
|
396,000 |
|
|
|
377,164 |
|
Residential Mortgage
Loans |
|
|
362,844 |
|
|
|
356,610 |
|
|
|
350,682 |
|
|
|
$ |
3,977,900 |
|
|
$ |
3,893,573 |
|
|
$ |
3,788,645 |
|
The Company’s allowance for credit losses
totaled $43.8 million at December 31, 2023 compared to $44.6
million at September 30, 2023 and $44.2 million at December 31,
2022. The allowance for credit losses represented 1.10% of
period-end loans at December 31, 2023 compared with 1.15% at
September 30, 2023 and 1.17% of period-end loans at December 31,
2022. The decline in the allowance for credit losses as of year-end
2023 was largely related to the resolution during the fourth
quarter of 2023 of a single commercial borrowing relationship with
minimal loss recognition for which the Company had established a
significant reserve in previous periods.
Non-performing assets totaled $9.2 million at
December 31, 2023, $12.4 million at September 30, 2023 and $14.3
million at December 31, 2022. Non-performing assets represented
0.15% of total assets at year-end 2023, 0.21% at September 30, 2023
and 0.23% at December 31, 2022. Non-performing loans totaled $9.2
million at December 31, 2023, $12.4 million at September 30, 2023
and $14.3 million at December 31, 2022. Non-performing loans
represented 0.23% of total loans at December 31, 2023, 0.32% at
September 30, 2023 and 0.38% at December 31, 2022. The decline in
non-performing assets and loans at year-end 2023 was largely
attributable to the payoff of the aforementioned single
non-performing commercial credit relationship.
Non-performing
Assets |
|
|
|
|
|
(dollars in
thousands) |
|
|
|
|
|
|
12/31/2023 |
|
9/30/2023 |
|
12/31/2022 |
Non-Accrual Loans |
$ |
9,136 |
|
|
$ |
11,206 |
|
|
$ |
12,888 |
|
Past Due Loans (90 days or
more) |
|
55 |
|
|
|
1,170 |
|
|
|
1,427 |
|
Total Non-Performing Loans |
|
9,191 |
|
|
|
12,376 |
|
|
|
14,315 |
|
Other Real Estate |
|
— |
|
|
|
24 |
|
|
|
— |
|
Total Non-Performing Assets |
$ |
9,191 |
|
|
$ |
12,400 |
|
|
$ |
14,315 |
|
|
|
|
|
|
|
Restructured Loans |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-end 2023 total deposits increased $117.1
million, or 2% on a linked quarter basis, compared to September 30,
2023 and declined $97.1 million, or 2%, compared with December 31,
2022. The increase at year-end 2023 compared to September 30, 2023
was largely attributable to seasonal inflows of public entity funds
combined with an inflow of time deposits. The Company has continued
to see customer movement from both interest bearing and
non-interest bearing transactional accounts to time deposits due
primarily to a higher interest rate environment. Non-interest
bearing deposits have remained relatively stable as a percent of
total deposits with December 31, 2023 non-interest deposits
totaling 28% of total deposits compared with 29% at September 30,
2023 and 32% at year-end 2022.
A competitive market driven by the rise in
interest rates has been a significant contributing factor to the
decline in total deposits over the course of the past year.
Additionally, a meaningful level of the outflow of deposits
experienced during the past year was captured within the Company's
wealth management group.
December 31, 2023 total borrowings declined
$92.3 million compared to September 30, 2023 and declined $9.9
million compared with year-end 2022. The decline in total
borrowings during the fourth quarter of 2023 compared with
September 30, 2023 was largely attributable to a decline in
short-term borrowings primarily related to growth in overall
deposits during the fourth quarter of 2023.
End of Period Deposit
Balances |
|
12/31/2023 |
|
9/30/2023 |
|
12/31/2022 |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest-bearing Demand Deposits |
|
$ |
1,493,160 |
|
|
$ |
1,502,175 |
|
|
$ |
1,691,804 |
|
IB Demand, Savings, and MMDA
Accounts |
|
|
2,992,761 |
|
|
|
2,932,180 |
|
|
|
3,229,778 |
|
Time Deposits <
$100,000 |
|
|
289,077 |
|
|
|
269,829 |
|
|
|
235,219 |
|
Time Deposits >
$100,000 |
|
|
477,965 |
|
|
|
431,687 |
|
|
|
193,250 |
|
|
|
$ |
5,252,963 |
|
|
$ |
5,135,871 |
|
|
$ |
5,350,051 |
|
At December 31, 2023, the capital levels for the
Company and its subsidiary bank, German American Bank (the “Bank”),
remained well in excess of the minimum amounts needed for capital
adequacy purposes and the Bank’s capital levels met the necessary
requirements to be considered well-capitalized.
|
|
12/31/2023Ratio |
|
9/30/2023Ratio |
|
12/31/2022Ratio |
Total Capital (to Risk
Weighted Assets) |
|
|
|
|
|
|
Consolidated |
|
16.50 |
% |
|
16.21 |
% |
|
15.45 |
% |
Bank |
|
14.76 |
% |
|
14.83 |
% |
|
14.07 |
% |
Tier 1 (Core) Capital (to Risk
Weighted Assets) |
|
|
|
|
|
|
Consolidated |
|
14.97 |
% |
|
14.66 |
% |
|
13.97 |
% |
Bank |
|
14.04 |
% |
|
14.10 |
% |
|
13.42 |
% |
Common Tier 1 (CET 1) Capital Ratio (to Risk Weighted Assets) |
|
|
|
|
|
|
Consolidated |
|
14.26 |
% |
|
13.95 |
% |
|
13.26 |
% |
Bank |
|
14.04 |
% |
|
14.10 |
% |
|
13.42 |
% |
Tier 1 Capital (to Average
Assets) |
|
|
|
|
|
|
Consolidated |
|
11.75 |
% |
|
11.70 |
% |
|
10.50 |
% |
Bank |
|
11.03 |
% |
|
11.26 |
% |
|
10.09 |
% |
Results of Operations Highlights – Year
ended December 31, 2023
Net income for the year ended December 31, 2023
totaled $85,888,000, or $2.91 per share, an increase of $4,063,000,
or approximately 5% on a per share basis, from the year ended
December 31, 2022 net income of $81,825,000, or $2.78 per share.
The increase in net income during 2023, compared with 2022, was
primarily attributable to increased non-interest income, a decline
in non-interest expenses (which was driven by higher expenses in
2022 as a result of the January 1, 2022 acquisition of Citizens
Union Bancorp of Shelbyville, Inc. (“CUB”)), and a lower provision
for credit losses. The positive impact of those items was partially
offset by a decline in net interest income resulting primarily from
a reduced level of earning assets, which was somewhat mitigated by
an improved net interest margin. The 2022 results of operations
included acquisition-related expenses of $12,323,000 ($9,372,000 or
$0.32 per share, on an after tax basis) and also included Day 1
provision for credit losses under the CECL model of $6,300,000
($4,725,000 or $0.16 per share, on an after tax basis).
Summary
Average Balance Sheet |
(Tax-equivalent
basis / dollars in thousands) |
|
|
Year Ended December 31, 2023 |
|
Year Ended December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PrincipalBalance |
|
Income/Expense |
|
Yield/Rate |
|
PrincipalBalance |
|
Income/Expense |
|
Yield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
Federal Funds Sold and
Other |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term Investments |
|
$ |
39,452 |
|
$ |
1,677 |
|
4.25 |
% |
|
$ |
458,230 |
|
$ |
5,765 |
|
1.26 |
% |
Securities |
|
|
1,629,610 |
|
|
48,270 |
|
2.96 |
% |
|
|
1,860,730 |
|
|
50,263 |
|
2.70 |
% |
Loans and Leases |
|
|
3,835,157 |
|
|
213,195 |
|
5.56 |
% |
|
|
3,680,708 |
|
|
169,593 |
|
4.61 |
% |
Total Interest Earning
Assets |
|
$ |
5,504,219 |
|
$ |
263,142 |
|
4.78 |
% |
|
$ |
5,999,668 |
|
$ |
225,621 |
|
3.76 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Demand Deposit Accounts |
|
$ |
1,553,082 |
|
|
|
|
|
$ |
1,738,349 |
|
|
|
|
IB Demand, Savings, and |
|
|
|
|
|
|
|
|
|
|
|
|
MMDA Accounts |
|
$ |
3,055,251 |
|
$ |
40,484 |
|
1.33 |
% |
|
$ |
3,487,741 |
|
$ |
11,462 |
|
0.33 |
% |
Time Deposits |
|
|
588,142 |
|
|
16,432 |
|
2.79 |
% |
|
|
474,409 |
|
|
2,052 |
|
0.43 |
% |
FHLB Advances and Other
Borrowings |
|
|
210,837 |
|
|
9,307 |
|
4.41 |
% |
|
|
159,029 |
|
|
4,828 |
|
3.04 |
% |
Total Interest-Bearing
Liabilities |
|
$ |
3,854,230 |
|
$ |
66,223 |
|
1.72 |
% |
|
$ |
4,121,179 |
|
$ |
18,342 |
|
0.45 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Funds |
|
|
|
|
|
1.20 |
% |
|
|
|
|
|
0.31 |
% |
Net Interest Income |
|
|
|
$ |
196,919 |
|
|
|
|
|
$ |
207,279 |
|
|
Net Interest Margin |
|
|
|
|
|
3.58 |
% |
|
|
|
|
|
3.45 |
% |
During the year ended December 31, 2023, net
interest income, on a non tax-equivalent basis, totaled
$190,433,000, a decline of $10,151,000, or 5%, compared to the year
ended December 31, 2022 net interest income of $200,584,000. The
decline in net interest income during 2023 compared with 2022 was
primarily attributable to a decline in average earning assets,
driven by a reduced level of deposits which was somewhat offset by
an improved net interest margin resulting from the rise in market
interest rates.
The tax equivalent net interest margin for the
year ended December 31, 2023 was 3.58% compared with 3.45% for the
year ended December 31, 2022. Accretion of loan discounts on
acquired loans contributed approximately 5 basis points to the net
interest margin in 2023 and 7 basis points in 2022. Accretion of
discounts on acquired loans totaled $2,814,000 during 2023 and
$4,341,000 during 2022.
During the year ended December 31, 2023, the
Company recorded a provision for credit losses of $2,550,000
compared with a provision for credit losses of $6,350,000 for the
year ended December 31, 2022. During 2022, the provision for credit
losses included $6,300,000 for the Day 1 CECL addition to the
allowance for credit loss related to the CUB acquisition.
During the year ended December 31, 2023,
non-interest income increased $1,128,000, or 2%, compared with the
year ended December 31, 2022.
|
|
Year Ended |
|
Year Ended |
Non-interest
Income |
|
12/31/2023 |
|
12/31/2022 |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
Wealth Management Fees |
|
$ |
11,711 |
|
|
$ |
10,076 |
|
Service Charges on Deposit
Accounts |
|
|
11,538 |
|
|
|
11,457 |
|
Insurance Revenues |
|
|
9,596 |
|
|
|
10,020 |
|
Company Owned Life
Insurance |
|
|
1,731 |
|
|
|
2,264 |
|
Interchange Fee Income |
|
|
17,452 |
|
|
|
15,820 |
|
Other Operating Income |
|
|
5,830 |
|
|
|
5,116 |
|
Subtotal |
|
|
57,858 |
|
|
|
54,753 |
|
Net Gains on Sales of
Loans |
|
|
2,363 |
|
|
|
3,818 |
|
Net Gains on Securities |
|
|
40 |
|
|
|
562 |
|
Total Non-interest
Income |
|
$ |
60,261 |
|
|
$ |
59,133 |
|
Wealth management fees increased $1,635,000, or
16%, during 2023 compared with 2022. The increase during 2023 was
largely attributable to increased assets under management within
the Company's wealth management group as compared with 2022.
Insurance revenues declined $424,000, or 4%,
during 2023 compared with 2022 which was primarily attributable to
decreased contingency revenue. Contingency revenue during 2023
totaled $955,000 compared with $1,641,000 during 2022. Contingency
revenue is reflective of claims and loss experience with insurance
carriers that the Company represents through its property and
casualty insurance agency.
Company owned life insurance decreased $533,000,
or 24%, during 2023 compared with 2022. The decline in 2023 was
primarily the result of a decrease in the death benefit claims
received compared with 2022.
Interchange fee income increased $1,632,000, or
10%, during the year ended December 31, 2023 compared with the year
ended December 31, 2022. The increase in the level of fees during
2023 compared with 2022 was due to increased card utilization by
customers.
Other operating income increased by $714,000, or
14%, during the year ended December 31, 2023 compared with the year
ended December 31, 2022. The increase during 2023 was largely
attributable to the gain on sale of real estate related to the
consolidation of various branch office facilities.
Net gains on sales of loans declined $1,455,000,
or 38%, during the year ended December 31, 2023 compared with the
year ended December 31, 2022. The decline during 2023 compared with
2022 was related to both a lower volume of loans sold and lower
pricing levels. Loan sales totaled $109.0 million during 2023
compared with $168.1 million during 2022.
The Company realized $40,000 in gains on sales
of securities during the year ended December 31, 2023 compared with
$562,000 during the year ended December 31, 2022. The sales of
securities, during both years, was a completed as part of modest
shifts in the allocations within the securities portfolio.
During the year ended December 31, 2023,
non-interest expense declined of $9,694,000, or 6%, compared to
2022. The year ended December 31, 2022 non-interest expenses
included approximately $12,323,000 of non-recurring
acquisition-related expenses for the acquisition of CUB.
|
|
Year Ended |
|
Year Ended |
Non-interest
Expense |
|
12/31/2023 |
|
12/31/2022 |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
Salaries and Employee Benefits |
|
$ |
83,244 |
|
|
$ |
84,145 |
|
Occupancy, Furniture and
Equipment Expense |
|
|
14,467 |
|
|
|
14,921 |
|
FDIC Premiums |
|
|
2,829 |
|
|
|
1,860 |
|
Data Processing Fees |
|
|
11,112 |
|
|
|
15,406 |
|
Professional Fees |
|
|
5,575 |
|
|
|
6,295 |
|
Advertising and Promotion |
|
|
4,857 |
|
|
|
4,416 |
|
Intangible Amortization |
|
|
2,840 |
|
|
|
3,711 |
|
Other Operating Expenses |
|
|
19,573 |
|
|
|
23,437 |
|
Total Non-interest
Expense |
|
$ |
144,497 |
|
|
$ |
154,191 |
|
Salaries and benefits declined $901,000, or 1%,
during the year ended December 31, 2023 compared with the year
ended December 31, 2022. The decline in salaries and benefits
during 2023 compared with 2022 was largely related to approximately
$1,480,000 of acquisition-related salary and benefit costs of a
non-recurring nature in 2022 related to the CUB acquisition.
FDIC premiums increased $969,000, or 52%, during
the year ended December 31, 2023 compared with 2022. The increase
during 2023 compared with 2022 was primarily related to an
industry-wide 2 basis point increase in the base FDIC premium
assessment effective January 1, 2023.
Data processing fees declined $4,294,000, or
28%, during the year ended December 31, 2023 compared with the year
ended December 31, 2022. The decline during 2023 compared with 2022
was largely driven by acquisition-related costs associated with the
CUB transaction, which totaled approximately $4,982,000 during
2022.
Professional fees declined $720,000, or 11%,
during the year ended December 31, 2023 compared with the year
ended December 31, 2022. The decline during 2023 compared with 2022
was primarily due to merger-related professional fees associated
with the CUB acquisition that totaled approximately $1,802,000 in
2022 partially mitigated by increased legal and other professional
fees.
Intangible amortization declined $871,000, or
23%, during the year ended December 31, 2023 compared with the year
ended December 31, 2022. Intangible amortization expense consists
primarily of amortization associated with the core deposit
intangible of acquired deposit portfolios. The decrease during 2023
compared with 2022 was primarily attributable to the accelerated
amortization method for which the intangible assets are
amortized.
Other operating expenses declined $3,864,000, or
16%, during the year ended December 31, 2023 compared to the year
ended December 31, 2022. The decline during 2023 compared with 2022
was attributable to acquisition-related costs that totaled
approximately $3,862,000 in 2022. The acquisition-related costs
were primarily vendor contract termination costs.
Results of Operations Highlights –
Quarter ended December 31, 2023
Net income for the quarter ended December 31,
2023 totaled $21,507,000, or $0.73 per share, which was consistent
with the third quarter 2023 net income of $21,451,000, or $0.73 per
share, and a decline of 12% on a per share basis compared with the
fourth quarter 2022 net income of $24,415,000, or $0.83 per share.
The decline in net income in the fourth quarter of 2023 compared to
the fourth quarter of 2022 was largely driven by a reduced level of
average earning assets and net interest margin resulting in a
decline in net interest income.
Summary
Average Balance Sheet |
(Tax-equivalent
basis / dollars in thousands) |
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PrincipalBalance |
|
Income/Expense |
|
Yield/Rate |
|
PrincipalBalance |
|
Income/Expense |
|
Yield/Rate |
|
PrincipalBalance |
|
Income/Expense |
|
Yield/Rate |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal Funds Sold and
Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term Investments |
|
$ |
36,927 |
|
$ |
473 |
|
5.09 |
% |
|
$ |
20,243 |
|
$ |
199 |
|
3.91 |
% |
|
$ |
234,107 |
|
$ |
2,200 |
|
3.73 |
% |
Securities |
|
|
1,527,306 |
|
|
11,903 |
|
3.12 |
% |
|
|
1,596,653 |
|
|
11,677 |
|
2.93 |
% |
|
|
1,735,534 |
|
|
13,150 |
|
3.03 |
% |
Loans and Leases |
|
|
3,921,967 |
|
|
56,257 |
|
5.69 |
% |
|
|
3,855,586 |
|
|
55,343 |
|
5.70 |
% |
|
|
3,728,788 |
|
|
47,262 |
|
5.03 |
% |
Total Interest Earning
Assets |
|
$ |
5,486,200 |
|
$ |
68,633 |
|
4.98 |
% |
|
$ |
5,472,482 |
|
$ |
67,219 |
|
4.88 |
% |
|
$ |
5,698,429 |
|
$ |
62,612 |
|
4.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Demand Deposit Accounts |
|
$ |
1,507,780 |
|
|
|
|
|
$ |
1,524,682 |
|
|
|
|
|
$ |
1,735,264 |
|
|
|
|
IB Demand, Savings, and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MMDA Accounts |
|
$ |
3,010,984 |
|
$ |
12,433 |
|
1.64 |
% |
|
$ |
2,973,909 |
|
$ |
10,601 |
|
1.41 |
% |
|
$ |
3,359,079 |
|
$ |
6,347 |
|
0.75 |
% |
Time Deposits |
|
|
709,534 |
|
|
6,577 |
|
3.68 |
% |
|
|
640,992 |
|
|
4,977 |
|
3.08 |
% |
|
|
426,710 |
|
|
692 |
|
0.64 |
% |
FHLB Advances and Other
Borrowings |
|
|
202,555 |
|
|
2,394 |
|
4.69 |
% |
|
|
219,371 |
|
|
2,505 |
|
4.53 |
% |
|
|
162,792 |
|
|
1,441 |
|
3.51 |
% |
Total Interest-Bearing
Liabilities |
|
$ |
3,923,073 |
|
$ |
21,404 |
|
2.16 |
% |
|
$ |
3,834,272 |
|
$ |
18,083 |
|
1.87 |
% |
|
$ |
3,948,581 |
|
$ |
8,480 |
|
0.85 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Funds |
|
|
|
|
|
1.55 |
% |
|
|
|
|
|
1.31 |
% |
|
|
|
|
|
0.59 |
% |
Net Interest Income |
|
|
|
$ |
47,229 |
|
|
|
|
|
$ |
49,136 |
|
|
|
|
|
$ |
54,132 |
|
|
Net Interest Margin |
|
|
|
|
|
3.43 |
% |
|
|
|
|
|
3.57 |
% |
|
|
|
|
|
3.78 |
% |
During the fourth quarter of 2023, net interest
income, on a non tax-equivalent basis, totaled $45,607,000, a
decline of $1,952,000, or 4%, compared to the third quarter of 2023
net interest income of $47,559,000 and a decline of $6,774,000, or
13%, compared to the fourth quarter of 2022 net interest income of
$52,381,000.
The decline in net interest income during the
fourth quarter of 2023 compared with the third quarter of 2023 was
primarily attributable to a decline in the Company's net interest
margin. The decline in net interest income during the fourth
quarter of 2023 compared with the fourth quarter of 2022 was
primarily attributable to a decline in average earning assets,
driven by a reduced level of average deposits, and a lower net
interest margin.
The tax equivalent net interest margin for the
quarter ended December 31, 2023 was 3.43% compared with 3.57% in
the third quarter of 2023 and 3.78% in the fourth quarter of 2022.
The decline in the net interest margin during the fourth quarter of
2023 compared with both the third quarter of 2023 and the fourth
quarter of 2022 was largely driven by a lower level of accretion of
discounts on acquired loans and an increase in the cost of funds.
The cost of funds continued to accelerate higher in the fourth
quarter of 2023 due to the continued increase of market interest
rates, very competitive deposit pricing in the marketplace,
customers actively looking for yield opportunities within and
outside the banking industry and a change in the Company's deposit
composition.
The Company's net interest margin and net
interest income have been impacted by accretion of loan discounts
on acquired loans. Accretion of discounts on acquired loans totaled
$280,000 during the fourth quarter of 2023, $1,288,000 during the
third quarter of 2023 and $603,000 during the fourth quarter of
2022. Accretion of loan discounts on acquired loans contributed
approximately 2 basis points to the net interest margin in the
fourth quarter of 2023, 9 basis points in the third quarter of 2023
and 4 basis points in the fourth quarter of 2022.
During the quarter ended December 31, 2023, the
Company did not record a provision for credit losses compared with
a provision for credit losses of $900,000 in the third quarter of
2023 and a provision for credit losses of $500,000 during the
fourth quarter of 2022. The lack of a provision in the fourth
quarter of 2023 was largely related to the resolution during the
fourth quarter of 2023 of a single commercial borrowing
relationship with minimal loss recognition for which the Company
had established a significant reserve in previous periods.
Net charge-offs totaled $881,000, or 9 basis
points on an annualized basis, of average loans outstanding during
the fourth quarter of 2023 compared with $520,000, or 5 basis
points on an annualized basis, of average loans during the third
quarter of 2023 and compared with $1,031,000, or 11 basis points,
of average loans during the fourth quarter of 2022.
During the quarter ended December 31, 2023,
non-interest income totaled $15,594,000, an increase of $790,000,
or 5%, compared with the third quarter of 2023 and an increase of
$1,926,000, or 14%, compared with the fourth quarter of 2022.
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
Non-interest
Income |
|
12/31/2023 |
|
9/30/2023 |
|
12/31/2022 |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth Management Fees |
|
$ |
3,198 |
|
|
$ |
2,957 |
|
|
$ |
2,420 |
|
Service Charges on Deposit
Accounts |
|
|
2,885 |
|
|
|
2,982 |
|
|
|
2,889 |
|
Insurance Revenues |
|
|
2,266 |
|
|
|
2,065 |
|
|
|
2,050 |
|
Company Owned Life
Insurance |
|
|
455 |
|
|
|
446 |
|
|
|
496 |
|
Interchange Fee Income |
|
|
4,371 |
|
|
|
4,470 |
|
|
|
3,972 |
|
Other Operating Income |
|
|
1,887 |
|
|
|
1,270 |
|
|
|
1,258 |
|
Subtotal |
|
|
15,062 |
|
|
|
14,190 |
|
|
|
13,085 |
|
Net Gains on Sales of
Loans |
|
|
532 |
|
|
|
614 |
|
|
|
494 |
|
Net Gains on Securities |
|
|
— |
|
|
|
— |
|
|
|
89 |
|
Total Non-interest
Income |
|
$ |
15,594 |
|
|
$ |
14,804 |
|
|
$ |
13,668 |
|
Wealth management fees increased $241,000, or
8%, during the fourth quarter of 2023 compared with the third
quarter of 2023 and increased $778,000, or 32%, compared with the
fourth quarter of 2022. The increase during the fourth quarter of
2023 was largely attributable to increased assets under management
within the Company's wealth management group as compared with both
the third quarter of 2023 and fourth quarter of 2022.
Interchange fee income declined $99,000, or 2%,
during the quarter ended December 31, 2023 compared with the third
quarter of 2023 and increased $399,000, or 10%, compared with the
fourth quarter of 2022. The decline in the fourth quarter of 2023
compared with the third quarter of 2023 was related to a modestly
lower level of customer transaction volume. The increased level of
fees during the fourth quarter of 2023 compared with the fourth
quarter of 2022 was due to increased card utilization by
customers.
Other operating income increased $617,000, or
49%, during the fourth quarter of 2023 compared with the third
quarter of 2023 and increased $629,000, or 50%, compared with the
fourth quarter of 2022. The increase during the fourth quarter of
2023 was largely attributable to the gain on sale of real estate
related to the consolidation of various branch office
facilities.
During the quarter ended December 31, 2023,
non-interest expense totaled $35,734,000, an increase of $313,000,
or 1%, compared with the third quarter of 2023, and increased
$120,000, or less than 1%, compared with the fourth quarter of
2022.
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
Non-interest
Expense |
|
12/31/2023 |
|
9/30/2023 |
|
12/31/2022 |
(dollars in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and Employee Benefits |
|
$ |
20,948 |
|
|
$ |
20,347 |
|
|
$ |
20,922 |
|
Occupancy, Furniture and
Equipment Expense |
|
|
3,513 |
|
|
|
3,691 |
|
|
|
3,655 |
|
FDIC Premiums |
|
|
701 |
|
|
|
700 |
|
|
|
442 |
|
Data Processing Fees |
|
|
2,835 |
|
|
|
2,719 |
|
|
|
2,510 |
|
Professional Fees |
|
|
1,170 |
|
|
|
1,229 |
|
|
|
1,171 |
|
Advertising and Promotion |
|
|
1,151 |
|
|
|
1,278 |
|
|
|
1,036 |
|
Intangible Amortization |
|
|
636 |
|
|
|
685 |
|
|
|
840 |
|
Other Operating Expenses |
|
|
4,780 |
|
|
|
4,772 |
|
|
|
5,038 |
|
Total Non-interest
Expense |
|
$ |
35,734 |
|
|
$ |
35,421 |
|
|
$ |
35,614 |
|
Salaries and benefits increased $601,000, or 3%,
during the quarter ended December 31, 2023 compared with the third
quarter of 2023 and increased $26,000, or less than 1%, compared
with the fourth quarter of 2022. The increase in salaries and
benefits during the fourth quarter of 2023 compared with the third
quarter of 2023 was primarily due to incentive and commission
compensation along with higher health insurance benefit costs.
FDIC premiums were flat during the quarter ended
December 31, 2023 compared with the third quarter of 2023 and
increased $259,000, or 59%, compared with the fourth quarter of
2022. The increase in the fourth quarter of 2023 compared with the
fourth quarter of 2022 was primarily related to an industry-wide 2
basis point increase in the base FDIC premium assessment effective
January 1, 2023.
About German American
German American Bancorp, Inc. is a Nasdaq-traded
(symbol: GABC) financial holding company based in Jasper, Indiana.
German American, through its banking subsidiary German American
Bank, operates 75 banking offices in 20 contiguous southern Indiana
counties and 14 counties in Kentucky. The Company also owns an
investment brokerage subsidiary (German American Investment
Services, Inc.) and a full line property and casualty insurance
agency (German American Insurance, Inc.).
Cautionary Note Regarding Forward-Looking
Statements
Certain statements in this press release may be
deemed “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. Readers are
cautioned that, by their nature, forward-looking statements are
based on assumptions and are subject to risks, uncertainties, and
other factors. Forward-looking statements can often, but not
always, be identified by the use of words like “believe”,
“continue”, “pattern”, “estimate”, “project”, “intend”,
“anticipate”, “expect” and similar expressions or future or
conditional verbs such as “will”, “would”, “should”, “could”,
“might”, “can”, “may”, or similar expressions. Actual results and
experience could differ materially from the anticipated results or
other expectations expressed or implied by these forward-looking
statements as a result of a number of factors, including but not
limited to, those discussed in this press release. Factors that
could cause actual experience to differ from the expectations
expressed or implied in this press release include:
- changes in
interest rates and the timing and magnitude of any such
changes;
- unfavorable
economic conditions, including a prolonged period of inflation, and
the resulting adverse impact on, among other things, credit
quality;
- the impacts
related to or resulting from recent bank failures or adverse
developments at other banks on general investor sentiment regarding
the stability and liquidity of banks;
- the impacts of
epidemics, pandemics or other infectious disease outbreaks;
- changes in
competitive conditions;
- the
introduction, withdrawal, success and timing of asset/liability
management strategies or of mergers and acquisitions and other
business initiatives and strategies;
- changes in
customer borrowing, repayment, investment and deposit
practices;
- changes in
fiscal, monetary and tax policies;
- changes in
financial and capital markets;
- capital
management activities, including possible future sales of new
securities, or possible repurchases or redemptions by German
American of outstanding debt or equity securities;
- risks of
expansion through acquisitions and mergers, such as unexpected
credit quality problems of the acquired loans or other assets,
unexpected attrition of the customer base or employee base of the
acquired institution or branches, and difficulties in integration
of the acquired operations;
- factors driving
impairment charges on investments;
- the impact,
extent and timing of technological changes;
- potential
cyber-attacks, information security breaches and other criminal
activities;
- litigation
liabilities, including related costs, expenses, settlements and
judgments, or the outcome of matters before regulatory agencies,
whether pending or commencing in the future;
- actions of the
Federal Reserve Board;
- the potential
for increases to, and volatility in, the balance of our allowance
for credit losses and related provision expense due to the current
expected credit loss (CECL) standard;
- changes in
accounting principles and interpretations;
- 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;
- 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;
- 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;
- the continued
availability of earnings and excess capital sufficient for the
lawful and prudent declaration and payment of cash dividends;
and
- other risk
factors expressly identified in German American’s filings with the
SEC.
Such statements reflect our views with respect
to future events and are subject to these and other risks,
uncertainties and assumptions relating to the operations, results
of operations, growth strategy and liquidity of German American.
Readers are cautioned not to place undue reliance on these
forward-looking statements. It is intended that these
forward-looking statements speak only as of the date they are made.
We do not undertake any obligation to release publicly any
revisions to these forward-looking statements to reflect future
events or circumstances or to reflect the occurrence of
unanticipated events.
GERMAN AMERICAN BANCORP, INC. |
(unaudited, dollars in thousands except per share
data) |
|
|
|
|
|
|
Consolidated Balance Sheets |
|
|
|
|
|
|
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
ASSETS |
|
|
|
|
|
Cash and Due from Banks |
$ |
78,805 |
|
|
$ |
72,063 |
|
|
$ |
75,476 |
|
Short-term Investments |
|
37,025 |
|
|
|
60,856 |
|
|
|
42,405 |
|
Investment Securities |
|
1,597,185 |
|
|
|
1,477,309 |
|
|
|
1,762,022 |
|
|
|
|
|
|
|
Loans Held-for-Sale |
|
5,226 |
|
|
|
7,085 |
|
|
|
8,600 |
|
|
|
|
|
|
|
Loans, Net of Unearned Income |
|
3,971,082 |
|
|
|
3,887,550 |
|
|
|
3,784,934 |
|
Allowance for Credit Losses |
|
(43,765 |
) |
|
|
(44,646 |
) |
|
|
(44,168 |
) |
Net Loans |
|
3,927,317 |
|
|
|
3,842,904 |
|
|
|
3,740,766 |
|
|
|
|
|
|
|
Stock in FHLB and Other Restricted Stock |
|
14,687 |
|
|
|
14,763 |
|
|
|
15,037 |
|
Premises and Equipment |
|
106,776 |
|
|
|
111,252 |
|
|
|
112,237 |
|
Goodwill and Other Intangible Assets |
|
186,664 |
|
|
|
187,373 |
|
|
|
189,783 |
|
Other Assets |
|
198,513 |
|
|
|
232,061 |
|
|
|
209,665 |
|
TOTAL ASSETS |
$ |
6,152,198 |
|
|
$ |
6,005,666 |
|
|
$ |
6,155,991 |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
Non-interest-bearing Demand Deposits |
$ |
1,493,160 |
|
|
$ |
1,502,175 |
|
|
$ |
1,691,804 |
|
Interest-bearing Demand, Savings, and Money Market Accounts |
|
2,992,761 |
|
|
|
2,932,180 |
|
|
|
3,229,778 |
|
Time Deposits |
|
767,042 |
|
|
|
701,516 |
|
|
|
428,469 |
|
Total Deposits |
|
5,252,963 |
|
|
|
5,135,871 |
|
|
|
5,350,051 |
|
|
|
|
|
|
|
Borrowings |
|
193,937 |
|
|
|
286,193 |
|
|
|
203,806 |
|
Other Liabilities |
|
41,740 |
|
|
|
45,210 |
|
|
|
43,741 |
|
TOTAL LIABILITIES |
|
5,488,640 |
|
|
|
5,467,274 |
|
|
|
5,597,598 |
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY |
|
|
|
|
|
Common Stock and Surplus |
|
418,996 |
|
|
|
418,530 |
|
|
|
416,664 |
|
Retained Earnings |
|
461,622 |
|
|
|
447,475 |
|
|
|
405,167 |
|
Accumulated Other Comprehensive Income (Loss) |
|
(217,060 |
) |
|
|
(327,613 |
) |
|
|
(263,438 |
) |
SHAREHOLDERS'
EQUITY |
|
663,558 |
|
|
|
538,392 |
|
|
|
558,393 |
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
6,152,198 |
|
|
$ |
6,005,666 |
|
|
$ |
6,155,991 |
|
|
|
|
|
|
|
END OF PERIOD SHARES
OUTSTANDING |
|
29,584,709 |
|
|
|
29,575,451 |
|
|
|
29,493,193 |
|
|
|
|
|
|
|
TANGIBLE BOOK VALUE
PER SHARE (1) |
$ |
16.12 |
|
|
$ |
11.87 |
|
|
$ |
12.50 |
|
|
|
|
|
|
|
|
(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 |
|
Twelve Months Ended |
|
December 31,2023 |
|
September 30,2023 |
|
December 31,2022 |
|
December 31,2023 |
|
December 31,2022 |
INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
Interest and Fees on Loans |
$ |
56,058 |
|
|
$ |
55,196 |
|
|
$ |
47,108 |
|
|
$ |
212,517 |
|
|
$ |
169,158 |
|
Interest on Short-term Investments |
|
473 |
|
|
|
199 |
|
|
|
2,200 |
|
|
|
1,677 |
|
|
|
5,765 |
|
Interest and Dividends on Investment Securities |
|
10,480 |
|
|
|
10,247 |
|
|
|
11,553 |
|
|
|
42,462 |
|
|
|
44,003 |
|
TOTAL INTEREST INCOME |
|
67,011 |
|
|
|
65,642 |
|
|
|
60,861 |
|
|
|
256,656 |
|
|
|
218,926 |
|
|
|
|
|
|
|
|
|
|
|
INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
Interest on Deposits |
|
19,010 |
|
|
|
15,578 |
|
|
|
7,039 |
|
|
|
56,916 |
|
|
|
13,514 |
|
Interest on Borrowings |
|
2,394 |
|
|
|
2,505 |
|
|
|
1,441 |
|
|
|
9,307 |
|
|
|
4,828 |
|
TOTAL INTEREST EXPENSE |
|
21,404 |
|
|
|
18,083 |
|
|
|
8,480 |
|
|
|
66,223 |
|
|
|
18,342 |
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
|
45,607 |
|
|
|
47,559 |
|
|
|
52,381 |
|
|
|
190,433 |
|
|
|
200,584 |
|
Provision for Credit Losses |
|
— |
|
|
|
900 |
|
|
|
500 |
|
|
|
2,550 |
|
|
|
6,350 |
|
NET INTEREST INCOME AFTER PROVISION FOR CREDIT
LOSSES |
|
45,607 |
|
|
|
46,659 |
|
|
|
51,881 |
|
|
|
187,883 |
|
|
|
194,234 |
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
Net Gain on Sales of Loans |
|
532 |
|
|
|
614 |
|
|
|
494 |
|
|
|
2,363 |
|
|
|
3,818 |
|
Net Gain on Securities |
|
— |
|
|
|
— |
|
|
|
89 |
|
|
|
40 |
|
|
|
562 |
|
Other Non-interest Income |
|
15,062 |
|
|
|
14,190 |
|
|
|
13,085 |
|
|
|
57,858 |
|
|
|
54,753 |
|
TOTAL NON-INTEREST INCOME |
|
15,594 |
|
|
|
14,804 |
|
|
|
13,668 |
|
|
|
60,261 |
|
|
|
59,133 |
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
Salaries and Benefits |
|
20,948 |
|
|
|
20,347 |
|
|
|
20,922 |
|
|
|
83,244 |
|
|
|
84,145 |
|
Other Non-interest Expenses |
|
14,786 |
|
|
|
15,074 |
|
|
|
14,692 |
|
|
|
61,253 |
|
|
|
70,046 |
|
TOTAL NON-INTEREST EXPENSE |
|
35,734 |
|
|
|
35,421 |
|
|
|
35,614 |
|
|
|
144,497 |
|
|
|
154,191 |
|
|
|
|
|
|
|
|
|
|
|
Income before Income Taxes |
|
25,467 |
|
|
|
26,042 |
|
|
|
29,935 |
|
|
|
103,647 |
|
|
|
99,176 |
|
Income Tax Expense |
|
3,960 |
|
|
|
4,591 |
|
|
|
5,520 |
|
|
|
17,759 |
|
|
|
17,351 |
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME |
$ |
21,507 |
|
|
$ |
21,451 |
|
|
$ |
24,415 |
|
|
$ |
85,888 |
|
|
$ |
81,825 |
|
|
|
|
|
|
|
|
|
|
|
BASIC
EARNINGS PER SHARE |
$ |
0.73 |
|
|
$ |
0.73 |
|
|
$ |
0.83 |
|
|
$ |
2.91 |
|
|
$ |
2.78 |
|
DILUTED
EARNINGS PER SHARE |
$ |
0.73 |
|
|
$ |
0.73 |
|
|
$ |
0.83 |
|
|
$ |
2.91 |
|
|
$ |
2.78 |
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED
AVERAGE SHARES OUTSTANDING |
|
29,575,398 |
|
|
|
29,573,461 |
|
|
|
29,485,940 |
|
|
|
29,557,567 |
|
|
|
29,464,591 |
|
DILUTED
WEIGHTED AVERAGE SHARES OUTSTANDING |
|
29,575,398 |
|
|
|
29,573,461 |
|
|
|
29,485,940 |
|
|
|
29,557,567 |
|
|
|
29,464,591 |
|
|
GERMAN AMERICAN BANCORP, INC. |
(unaudited, dollars in thousands except per share
data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
EARNINGS
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
Annualized Return on Average Assets |
|
|
1.43 |
% |
|
|
1.43 |
% |
|
|
1.56 |
% |
|
|
1.42 |
% |
|
|
1.26 |
% |
|
Annualized Return on Average
Equity |
|
|
15.45 |
% |
|
|
14.36 |
% |
|
|
18.99 |
% |
|
|
14.70 |
% |
|
|
13.41 |
% |
|
Annualized Return on Average
Tangible Equity (1) |
|
|
23.26 |
% |
|
|
20.95 |
% |
|
|
30.14 |
% |
|
|
21.69 |
% |
|
|
19.51 |
% |
|
Net Interest Margin |
|
|
3.43 |
% |
|
|
3.57 |
% |
|
|
3.78 |
% |
|
|
3.58 |
% |
|
|
3.45 |
% |
|
Efficiency Ratio (2) |
|
|
55.87 |
% |
|
|
54.33 |
% |
|
|
51.36 |
% |
|
|
55.09 |
% |
|
|
56.60 |
% |
|
Net Overhead Expense to
Average Earning Assets (3) |
|
|
1.47 |
% |
|
|
1.51 |
% |
|
|
1.54 |
% |
|
|
1.53 |
% |
|
|
1.58 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
ASSET
QUALITY RATIOS |
|
|
|
|
|
|
|
|
|
|
|
Annualized Net Charge-offs to
Average Loans |
|
|
0.09 |
% |
|
|
0.05 |
% |
|
|
0.11 |
% |
|
|
0.08 |
% |
|
|
0.06 |
% |
|
Allowance for Credit Losses to
Period End Loans |
|
|
1.10 |
% |
|
|
1.15 |
% |
|
|
1.17 |
% |
|
|
|
|
|
Non-performing Assets to
Period End Assets |
|
|
0.15 |
% |
|
|
0.21 |
% |
|
|
0.23 |
% |
|
|
|
|
|
Non-performing Loans to Period
End Loans |
|
|
0.23 |
% |
|
|
0.32 |
% |
|
|
0.38 |
% |
|
|
|
|
|
Loans 30-89 Days Past Due to
Period End Loans |
|
|
0.33 |
% |
|
|
0.33 |
% |
|
|
0.37 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED
BALANCE SHEET & OTHER FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
Average Assets |
|
$ |
6,036,242 |
|
|
$ |
6,003,069 |
|
|
$ |
6,243,859 |
|
|
$ |
6,037,874 |
|
|
$ |
6,514,030 |
|
|
Average Earning Assets |
|
$ |
5,486,200 |
|
|
$ |
5,472,482 |
|
|
$ |
5,698,429 |
|
|
$ |
5,504,219 |
|
|
$ |
5,999,668 |
|
|
Average Total Loans |
|
$ |
3,921,967 |
|
|
$ |
3,855,586 |
|
|
$ |
3,728,788 |
|
|
$ |
3,835,157 |
|
|
$ |
3,680,708 |
|
|
Average Demand Deposits |
|
$ |
1,507,780 |
|
|
$ |
1,524,682 |
|
|
$ |
1,735,264 |
|
|
$ |
1,553,082 |
|
|
$ |
1,738,349 |
|
|
Average Interest Bearing
Liabilities |
|
$ |
3,923,073 |
|
|
$ |
3,834,272 |
|
|
$ |
3,948,581 |
|
|
$ |
3,854,230 |
|
|
$ |
4,121,179 |
|
|
Average Equity |
|
$ |
556,914 |
|
|
$ |
597,375 |
|
|
$ |
514,335 |
|
|
$ |
584,106 |
|
|
$ |
610,066 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Period End Non-performing
Assets (4) |
|
$ |
9,191 |
|
|
$ |
12,400 |
|
|
$ |
14,315 |
|
|
|
|
|
|
Period End Non-performing
Loans (5) |
|
$ |
9,191 |
|
|
$ |
12,376 |
|
|
$ |
14,315 |
|
|
|
|
|
|
Period End Loans 30-89 Days
Past Due (6) |
|
$ |
13,208 |
|
|
$ |
12,673 |
|
|
$ |
14,040 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax Equivalent Net Interest
Income |
|
$ |
47,229 |
|
|
$ |
49,136 |
|
|
$ |
54,132 |
|
|
$ |
196,919 |
|
|
$ |
207,279 |
|
|
Net Charge-offs during
Period |
|
$ |
881 |
|
|
$ |
520 |
|
|
$ |
1,031 |
|
|
$ |
2,953 |
|
|
$ |
2,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1 |
) |
Average Tangible Equity is defined as Average Equity less Average
Goodwill and Other Intangibles. |
|
|
|
|
(2 |
) |
Efficiency Ratio is defined as Non-interest Expense less Intangible
Amortization divided by the sum of Net Interest Income, on a tax
equivalent basis, and Non-interest Income less Net Gain on
Securities. |
|
|
|
|
(3 |
) |
Net Overhead Expense is defined as Total Non-interest Expense less
Total Non-interest Income. |
|
|
|
|
(4 |
) |
Non-performing assets are defined as Non-accrual Loans, Loans Past
Due 90 days or more, and Other Real Estate Owned. |
|
|
|
|
(5 |
) |
Non-performing loans are defined as Non-accrual Loans and Loans
Past Due 90 days or more. |
|
|
|
|
(6 |
) |
Loans 30-89 days past due and still accruing. |
|
|
|
|
For additional information, contact:D.
Neil Dauby, Chairman and Chief Executive
OfficerBradley M Rust, President and Chief
Financial Officer(812) 482-1314
German American Bancorp (NASDAQ:GABC)
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