Live News • May 09
German American Bancorp Q1 Profit Climbs to $33.2 Million as Credit Loss Provisions Fall German American Bancorp reported Q1 2026 net income of about $33.2 million, compared with $10.5 million in the prior-year quarter.
Adjusted earnings per share came in at $0.88, with an adjusted return on average assets of 1.58%.
The company plans a non-deal investor roadshow in May 2026 to highlight its earnings profile, balance sheet and dividend track record.
For you as an investor, the key takeaway is that profit in Q1 2026 was much higher than in the same quarter last year, helped by higher net interest income, a lower provision for credit losses of $2.0 million compared with $15.3 million, and non-interest income of $17.2 million from wealth management fees, service charges and interchange fees. The loan book stood at $5.85 billion and deposits at $6.98 billion, reflecting a community banking footprint across Indiana, Kentucky and Ohio. Management also pointed to strong capital ratios, credit quality and funding profile, with non-performing assets below peer levels.
The planned non-deal roadshow suggests the bank is putting more effort into engaging investors around its record of stable profitability and its approach to long-term earnings and dividend policy. If you follow regional banks, the combination of fee income, a diversified loan portfolio and management’s focus on credit risk and capital could be important themes to monitor in upcoming investor materials and future updates. Declared Dividend • Apr 30
First quarter dividend of US$0.31 announced Shareholders will receive a dividend of US$0.31. Ex-date: 10th May 2026 Payment date: 20th May 2026 Dividend yield will be 2.8%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 11% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 5.8% over the next year, which should provide support to the dividend and adequate earnings cover. Announcement • Apr 30
German American Bancorp, Inc. announces Quarterly dividend, payable on May 20, 2026 German American Bancorp, Inc. announced Quarterly dividend of USD 0.3100 per share payable on May 20, 2026, ex-date on May 08, 2026 and record date on May 10, 2026. Announcement • Apr 29
German American Bancorp, Inc. Reports Unaudited Net Charge Offs for the First Quarter Ended March 31, 2026 German American Bancorp, Inc. reported unaudited net charge offs for the first quarter ended March 31, 2026. For the quarter, the company reported net charge-offs of $1,147,000 compared to $486,000 a year ago. Reported Earnings • Apr 29
First quarter 2026 earnings: EPS in line with analyst expectations despite revenue beat First quarter 2026 results: EPS: US$0.88 (up from US$0.30 in 1Q 2025). Revenue: US$94.1m (up 42% from 1Q 2025). Net income: US$33.2m (up 215% from 1Q 2025). Profit margin: 35% (up from 16% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 6.5% p.a. on average during the next 2 years, compared to a 8.6% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has remained flat but the company’s share price has increased by 16% per year, which means it is well ahead of earnings. Announcement • Mar 09
German American Bancorp, Inc., Annual General Meeting, Apr 27, 2026 German American Bancorp, Inc., Annual General Meeting, Apr 27, 2026. Location: german american operations center, 1311 w. 12th ave., indiana, jasper United States Reported Earnings • Mar 03
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: US$3.06 (up from US$2.83 in FY 2024). Revenue: US$341.3m (up 36% from FY 2024). Net income: US$112.6m (up 34% from FY 2024). Profit margin: 33% (in line with FY 2024). Net interest margin (NIM): 4.02% (up from 3.43% in FY 2024). Non-performing loans: 0.50% (up from 0.27% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.2%. Revenue is forecast to grow 9.3% p.a. on average during the next 2 years, compared to a 9.0% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 3% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Declared Dividend • Jan 29
Fourth quarter dividend increased to US$0.31 Dividend of US$0.31 is 6.9% higher than last year. Ex-date: 10th February 2026 Payment date: 20th February 2026 Dividend yield will be 2.8%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (39% payout ratio) and is expected to be well covered in 3 years' time (32% forecast payout ratio). The dividend has increased by an average of 11% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 28% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 29
Full year 2025 earnings: EPS exceeds analyst expectations Full year 2025 results: EPS: US$3.06 (up from US$2.83 in FY 2024). Revenue: US$341.3m (up 36% from FY 2024). Net income: US$112.6m (up 34% from FY 2024). Profit margin: 33% (in line with FY 2024). Net interest margin (NIM): 4.02% (up from 3.43% in FY 2024). Non-performing loans: 0.50% (up from 0.27% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.2%. Revenue is forecast to grow 8.7% p.a. on average during the next 2 years, compared to a 8.9% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has increased by 1% per year. Declared Dividend • Oct 30
Third quarter dividend of US$0.29 announced Shareholders will receive a dividend of US$0.29. Ex-date: 10th November 2025 Payment date: 20th November 2025 Dividend yield will be 3.0%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (40% payout ratio) and is expected to be well covered in 3 years' time (33% forecast payout ratio). The dividend has increased by an average of 11% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 31% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 28
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: US$0.94 (up from US$0.71 in 3Q 2024). Revenue: US$93.5m (up 51% from 3Q 2024). Net income: US$35.1m (up 67% from 3Q 2024). Profit margin: 38% (up from 34% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 3.6%. Earnings per share (EPS) also surpassed analyst estimates by 8.9%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 8.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has increased by 1% per year. Declared Dividend • Jul 31
Second quarter dividend of US$0.29 announced Shareholders will receive a dividend of US$0.29. Ex-date: 8th August 2025 Payment date: 20th August 2025 Dividend yield will be 3.0%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 11% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 22% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 29
Second quarter 2025 earnings: EPS exceeds analyst expectations Second quarter 2025 results: EPS: US$0.84 (up from US$0.69 in 2Q 2024). Revenue: US$88.7m (up 38% from 2Q 2024). Net income: US$31.4m (up 53% from 2Q 2024). Profit margin: 35% (up from 32% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 14%. Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 7.5% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has increased by 3% per year. Announcement • Jul 02
German American Bancorp, Inc. Appoints Andrew M. Seger to the Board and Audit Committee, Effective July 1, 2025 On June 30, 2025, the Board of Directors (the “Board”) of German American Bancorp, Inc. (the “Company”) appointed Andrew M. Seger to the Board for a term commencing on July 1, 2025 and expiring at the Company’s 2026 Annual Meeting of Shareholders, at which time he will be considered for election to a three-year term. On July 1, 2025, Mr. Seger will also begin serving on the Audit Committee of the Board. Inasmuch as the size of the Board had previously been set at 13 directors, the Board increased its size to 14 members on June 30, 2025 in order to permit the appointment of Mr. Seger, with the vacancy being reflected in the class of directors whose terms expire at the Company’s 2026 Annual Meeting of Shareholders. Andrew M. Seger is Chief Financial Officer and Senior Vice President of Sales for Wabash Valley Produce, Inc., an egg products company headquartered in Dubois, Indiana. Prior to joining Wabash Valley full time in 2011, Mr. Seger spent ten years at Frontenac, a Chicago-based private equity firm, where he became a principal and also served on the Board of Directors for numerous private equity-owned companies. Prior to Frontenac, Mr. Seger spent two years as an investment banking analyst at Goldman Sachs. He also currently serves on the Advisory Board of the Johnson Center for Entrepreneurship and Innovation for Indiana University and as President of the Economic Development and Redevelopment Commissions for the City of Jasper, Indiana. Andrew graduated with honors from Indiana University’s Kelley School of Business in 2000 with a Bachelor’s Degree in Finance/Legal Studies/International Studies and a minor in Political Science. Andrew currently represents Wabash Valley as the Chairman of the American Egg Board and previously served as Vice Chairman and as Chairman of its finance committee. He also currently serves on the Advisory Board of the Johnson Center for Entrepreneurship and Innovation for Indiana University and as President of the Economic Development and Redevelopment Commissions for the City of Jasper, Indiana. He is a past President and Board Member of the Dubois County Community Foundation. Major Estimate Revision • May 08
Consensus EPS estimates increase by 30% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from US$350.7m to US$356.0m. EPS estimate increased from US$2.18 to US$2.82 per share. Net income forecast to grow 45% next year vs 14% growth forecast for Banks industry in the US. Consensus price target down from US$46.00 to US$44.67. Share price was steady at US$38.43 over the past week. Declared Dividend • May 01
First quarter dividend of US$0.29 announced Shareholders will receive a dividend of US$0.29. Ex-date: 9th May 2025 Payment date: 20th May 2025 Dividend yield will be 3.0%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 11% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 24% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 29
First quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind First quarter 2025 results: EPS: US$0.30 (down from US$0.64 in 1Q 2024). Revenue: US$66.1m (up 10% from 1Q 2024). Net income: US$10.5m (down 45% from 1Q 2024). Profit margin: 16% (down from 32% in 1Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.0%. Earnings per share (EPS) missed analyst estimates by 38%. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has increased by 2% per year. Announcement • Mar 20
German American Bancorp, Inc., Annual General Meeting, Apr 28, 2025 German American Bancorp, Inc., Annual General Meeting, Apr 28, 2025. Location: german american operations center, 1311 w. 12 ave., indiana, jasper United States Reported Earnings • Mar 05
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: US$2.83 (down from US$2.91 in FY 2023). Revenue: US$250.5m (flat on FY 2023). Net income: US$83.8m (down 2.4% from FY 2023). Profit margin: 34% (down from 35% in FY 2023). Net interest margin (NIM): 3.43% (down from 3.58% in FY 2023). Non-performing loans: 0.27% (up from 0.23% in FY 2023). Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 4.1%. Revenue is forecast to grow 20% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has fallen by 1% per year. Announcement • Feb 04
German American Bancorp, Inc. Announces Board and Committee Changes German American Bancorp, Inc. announced as contemplated by the Merger Agreement, G. Scott McComb, Heartland’s Chairman, President and Chief Executive Officer immediately prior to the completion of the Merger, and Ronnie R. Stokes, another member of Heartland’s board of directors immediately prior to the completion of the Merger, have been appointed to the Company’s Board of Directors. Mr. McComb was appointed for a term that commenced on February 1, 2025 and expires on the date of the Company’s 2025 annual meeting of shareholders, filling the vacancy caused by the recently reported resignation of Thomas W. Seger. Mr. Stokes was appointed for a term that commenced on February 1, 2025 and expires on the date of the Company’s 2027 annual meeting of shareholders. In order to permit the appointment of Mr. Stokes, the Company’s Board of Directors increased its size from twelve (12) to thirteen (13) members, with such vacancy being added to the class of directors whose term expires at the Company’s annual meeting of shareholders in 2027. Also as contemplated by the Merger Agreement, at the conclusion of their initial terms, Messrs. McComb and Stokes will be nominated to stand for election to an additional term of three (3) years, subject to continued compliance with all applicable corporate governance policies and guidelines of the Company. Also effective on February 1, 2025, Mr. McComb began serving on the Credit Risk Management Committee and the Wealth Advisory Oversight Committee of the Company, and Mr. Stokes began serving on the Finance & Asset/Liability Management Committee (ALCO) and the Community Reinvestment Act Committee of the Company. As stated above, Mr. McComb was Heartland’s Chairman, President and CEO, a role he held since 2011. Mr. McComb first joined Heartland in 1999 as Director of Internet Banking. Since then, Mr. McComb served in various senior leadership roles at Heartland Bank including Senior Vice President of Customer Relations, and Executive Vice President and Chief Operating Officer. He was promoted to President in September 2008, CEO in 2009, and Chairman in 2011. In addition to being a Heartland director, Mr. Stokes is President and Chief Executive Officer at Three Leaf Productions, Inc., which provides integrated marketing and printing services nationwide. He also is an owner of LARS Properties, LLC, which offers real estate investment, property management, and commercial painting services. Mr. Stokes is in his 28th season as the on-air, expert analyst for The Ohio State University’s Men’s Basketball radio network. Declared Dividend • Jan 30
Fourth quarter dividend increased to US$0.29 Dividend of US$0.29 is 7.4% higher than last year. Ex-date: 10th February 2025 Payment date: 20th February 2025 Dividend yield will be 2.7%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (38% payout ratio) and is expected to be well covered in 3 years' time (33% forecast payout ratio). The dividend has increased by an average of 11% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 28% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 28
Full year 2024 earnings: EPS and revenues exceed analyst expectations Full year 2024 results: EPS: US$2.83 (down from US$2.91 in FY 2023). Revenue: US$250.5m (flat on FY 2023). Net income: US$83.8m (down 2.4% from FY 2023). Profit margin: 34% (down from 35% in FY 2023). Net interest margin (NIM): 3.43% (down from 3.58% in FY 2023). Non-performing loans: 0.27% (up from 0.23% in FY 2023). Revenue exceeded analyst estimates by 2.0%. Earnings per share (EPS) also surpassed analyst estimates by 4.1%. Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 2% per year. Announcement • Dec 30
German American Bancorp, Inc. and German American Bank Appoint Bradley C. Arnett as Executive Vice President, Chief Legal Officer and Corporate Secretary Effective January 1, 2025 German American Bancorp, Inc. and its banking subsidiary, German American Bank, announced that Bradley C. Arnett has been appointed Executive Vice President, Chief Legal Officer and Corporate Secretary effective January 1, 2025. Arnett currently serves as Senior Vice President, Chief Legal Officer and Corporate Secretary. Before joining German American Bank, Arnett practiced law for over 20 years, most recently as a partner at Dentons, a global law firm that has offices throughout Indiana, Kentucky and Ohio, with expertise in the areas of Securities and Exchange Commission reporting and compliance; corporate governance; mergers and acquisitions; banking regulation; commercial finance; and public and private securities offerings. Arnett also brought Fortune 500 in-house counsel experience with him. Arnett has been recognized by the Best Lawyers in America in the areas of Banking and Finance, Financial Services Regulation, Mergers and Acquisition, and Corporate Law. In 2022, Best Lawyers named him “Lawyer of the Year” in the State of Ohio for Banking and Finance law. Arnett earned his law degree from the Chase College of Law and his bachelor’s degree in accounting from Northern Kentucky University. He also carries a Certified Public Accounting license in Ohio. Price Target Changed • Nov 17
Price target increased by 8.5% to US$46.67 Up from US$43.00, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of US$45.61. Stock is up 52% over the past year. The company is forecast to post earnings per share of US$2.70 for next year compared to US$2.91 last year. Declared Dividend • Nov 01
Third quarter dividend of US$0.27 announced Shareholders will receive a dividend of US$0.27. Ex-date: 8th November 2024 Payment date: 20th November 2024 Dividend yield will be 2.7%, which is lower than the industry average of 3.2%. Sustainability & Growth Dividend is well covered by earnings (39% payout ratio) and is expected to be well covered in 3 years' time (34% forecast payout ratio). The dividend has increased by an average of 10% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 24% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 29
Third quarter 2024 earnings: EPS exceeds analyst expectations Third quarter 2024 results: EPS: US$0.71 (down from US$0.72 in 3Q 2023). Revenue: US$61.8m (flat on 3Q 2023). Net income: US$21.0m (down 1.9% from 3Q 2023). Profit margin: 34% (in line with 3Q 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 1.2%. Revenue is forecast to grow 20% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 2% per year whereas the company’s share price has remained flat. Major Estimate Revision • Aug 05
Consensus EPS estimates fall by 16%, revenue upgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast increased from US$247.1m to US$253.8m. EPS estimate fell from US$3.27 to US$2.74 per share. Net income forecast to grow 6.9% next year vs 9.4% growth forecast for Banks industry in the US. Consensus price target up from US$35.80 to US$41.60. Share price fell 7.7% to US$37.54 over the past week. Declared Dividend • Aug 02
Second quarter dividend of US$0.27 announced Shareholders will receive a dividend of US$0.27. Ex-date: 9th August 2024 Payment date: 20th August 2024 Dividend yield will be 2.8%, which is lower than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 10% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to decline by 3.7% over the next year. However, it would need to fall by 58% to increase the payout ratio to a potentially unsustainable range. Price Target Changed • Aug 01
Price target increased by 13% to US$40.40 Up from US$35.80, the current price target is an average from 5 analysts. New target price is approximately in line with last closing price of US$39.34. Stock is up 29% over the past year. The company is forecast to post earnings per share of US$2.73 for next year compared to US$2.91 last year. Reported Earnings • Jul 31
Second quarter 2024 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2024 results: EPS: US$0.69 (down from US$0.75 in 2Q 2023). Revenue: US$64.3m (up 2.7% from 2Q 2023). Net income: US$20.5m (down 7.2% from 2Q 2023). Profit margin: 32% (down from 35% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 8.2%. Earnings per share (EPS) missed analyst estimates by 49%. Revenue is forecast to grow 13% p.a. on average during the next 2 years, compared to a 6.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 1% per year whereas the company’s share price has increased by 3% per year. Announcement • Jul 31
German American Bancorp, Inc. Declares Regular Quarterly Cash Dividend, Payable on August 20, 2024 German American Bancorp, Inc. announced that its Board of Directors declared a regular quarterly cash dividend of $0.27 per share, which will be payable on August 20, 2024, to shareholders of record as of August 10, 2024. Announcement • Jul 30
German American Bancorp, Inc. (NasdaqGS:GABC) entered into a definitive agreement to acquire Heartland BancCorp (OTCPK:HLAN) from a group of shareholders for approximately $350 million. German American Bancorp, Inc. (NasdaqGS:GABC) entered into a definitive agreement to acquire Heartland BancCorp (OTCPK:HLAN) from a group of shareholders for approximately $350 million on July 29, 2024. Under the terms of the definitive agreement, Heartland shareholders will receive 3.90 shares of German American common stock for each share of Heartland common stock in an all stock, tax-free exchange. Based on the number of shares of Heartland common stock currently outstanding, German American expects to issue approximately 7.66 million shares of its common stock, and pay approximately $25.0 million in cash, in exchange for all of the issued and outstanding shares of Heartland common stock (including the shares held in the HLAN 401(k) Plan) and in cancellation of all outstanding options to acquire Heartland common stock. Under certain circumstances, termination of the Merger Agreement may result in the payment of a termination fee of $10 million by either German American or Heartland to the other party. Upon completion of the transaction, Heartland’s subsidiary bank, Heartland Bank, will be merged into German American’s subsidiary bank, German American Bank, and operate under a co-branded name within the Ohio markets. G. Scott McComb, Chairman, President and CEO of Heartland is expected to join the German American and German American Bank boards of directors while members of the Heartland executive and senior teams are expected to stay on as regional management to provide local leadership and decision making. In addition to Scott McComb, Ronnie Stokes, a current Heartland board member, is also expected to join the German American and German American Bank boards of directors.
Transaction is subject to approval by federal and state banking regulatory authorities; approval of the Merger by holders of at least two-thirds (2/3) of the issued and outstanding shares of Heartland common stock; approval of the Merger by holders of a majority of the issued and outstanding shares of German American common stock; effectiveness of the registration statement to be filed by German American with respect to the German American common stock to be issued in the Merger; and the completion of other customary closing conditions. The Boards of Directors of both German American and Heartland have unanimously approved the Merger Agreement. German American entered into a voting agreement with the members of the board of directors of Heartland and with certain officers of Heartland and Heartland Bank, all of whom collectively held approximately 7.55% of the outstanding shares of Heartland common stock as of July 29, 2024, and Heartland entered into a voting agreement with the members of the board of directors of German American, all of whom collectively held approximately 3.17% of the outstanding shares of German American common stock as of July 29, 2024. The transaction is expected to close in the first quarter of 2025. Transaction is expected to be materially accretive to German American’s earnings per share during the twelve months following completion of the transaction with a relatively quick tangible book value earn back period.
Keefe, Bruyette & Woods, Inc., A Stifel Company acted as financial advisor and fairness opinion provider and Jeremy E. Hill of Dentons Bingham Greenebaum LLP served as legal counsel to German American Bancorp, Inc. Raymond James & Associates, Inc. served as financial advisor and fairness opinion provider and Peter Weinstock and Beth Whitaker of Hunton Andrews Kurth LLP served as legal counsel to Heartland BancCorp. Computershare Investor Services LLC acted as transfer agent to GABC. Valuation Update With 7 Day Price Move • Jul 17
Investor sentiment improves as stock rises 15% After last week's 15% share price gain to US$40.11, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Banks industry in the US. Total returns to shareholders of 19% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$64.45 per share. Major Estimate Revision • Jun 06
Consensus EPS estimates increase by 15%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from US$251.5m to US$249.0m. EPS estimate rose from US$2.55 to US$2.92. Net income forecast to grow 7.5% next year vs 2.1% growth forecast for Banks industry in the US. Consensus price target of US$35.20 unchanged from last update. Share price was steady at US$31.80 over the past week. Declared Dividend • May 02
First quarter dividend of US$0.27 announced Shareholders will receive a dividend of US$0.27. Ex-date: 9th May 2024 Payment date: 20th May 2024 Dividend yield will be 3.3%, which is about the same as the industry average. Sustainability & Growth The dividend has increased by an average of 10% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to decline by 4.2% over the next year. However, it would need to fall by 70% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Apr 30
First quarter 2024 earnings: EPS in line with expectations, revenues disappoint First quarter 2024 results: EPS: US$0.64 (down from US$0.70 in 1Q 2023). Revenue: US$59.9m (down 4.7% from 1Q 2023). Net income: US$19.0m (down 8.6% from 1Q 2023). Profit margin: 32% (down from 33% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 3.2%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 3.4% p.a. on average during the next 2 years, compared to a 5.7% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Announcement • Mar 28
German American Bancorp, Inc. Appoints Mary Moorhouse as Chief Risk Officer German American Bancorp, Inc. announced that Mary Moorhouse has been appointed Senior Vice President, Chief Risk Officer, effective April 1, 2024, where she will be responsible for overseeing German American’s enterprise-wide risk management program, focusing on recognizing, assessing and managing all risks of the Company. Mary will succeed current Senior Vice President and Chief Risk Officer Jeff Cash who will be retiring. She will report directly to Chairman and CEO D. Neil Dauby and be a member of the senior management leadership team. Mary currently serves as Vice President, Risk Management overseeing BSA/AML compliance, physical security and fraud investigations, and CRA compliance. She holds a Bachelor of Arts from Indiana University and her Juris Doctorate from Valparaiso University School of Law. She holds a Certified Enterprise Risk Professional certification from the American Bankers Association. Board Change • Mar 22
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 9 highly experienced directors. CEO & Chairman D. Dauby was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Mar 22
German American Bancorp, Inc., Annual General Meeting, Apr 29, 2024 German American Bancorp, Inc., Annual General Meeting, Apr 29, 2024, at 11:30 Eastern Standard Time. Location: German American Operations Center,1311 W. 12 th Ave Jasper Indiana United States Agenda: To elect four (4) directors, each to serve until the 2027 annual meeting of our shareholders; to approve, on an advisory basis, the compensation of our Executive Officers who are named in the compensation disclosures in the accompanying Proxy Statement; to approve, on an advisory basis, the appointment of Crowe LLP as our independent registered public accounting firm for our fiscal year ending December 31, 2024; and to transact such other business as may properly come before the meeting. Announcement • Mar 05
German American Bancorp, Inc. and German American Bank Announce Management Changes German American Bancorp, Inc. and its banking subsidiary, German American Bank, announced that Scott Powell has been appointed Executive Vice President, Chief Credit Officer, effective April 1, 2024. Powell will succeed current Executive Vice President and Chief Credit Officer, Keith A. Leinenbach, who will be retiring. Leinenbach will retire after 24 years with the organization and over 40 years of broad-based banking industry experience. Keith has been a trusted steward of German American’s credit culture for decades and has provided exceptional executive leadership over the years. Powell joined German American Bank through the acquisition of First Security Bank in 2018 where he served as an executive and Chief Credit officer. He currently serves in the role of Regional Credit Officer at German American. Scott brings vast credit administrative experience with nearly 34 years of commercial risk and banking experience at community and large national banks. Powell resides in Newburgh, Indiana. He earned his Bachelor of Science degree from McKendree University and his MBA from the University of Southern, Indiana. Reported Earnings • Feb 29
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: US$2.91 (up from US$2.78 in FY 2022). Revenue: US$248.1m (down 2.1% from FY 2022). Net income: US$85.9m (up 5.0% from FY 2022). Profit margin: 35% (up from 32% in FY 2022). The increase in margin was driven by lower expenses. Non-performing loans: 0.23% (down from 0.38% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.0%. Revenue is forecast to grow 2.4% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 4% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. Price Target Changed • Feb 14
Price target increased by 7.4% to US$36.50 Up from US$34.00, the current price target is an average from 4 analysts. New target price is 14% above last closing price of US$32.01. Stock is down 19% over the past year. The company is forecast to post earnings per share of US$2.58 for next year compared to US$2.91 last year. Declared Dividend • Feb 01
Fourth quarter dividend of US$0.27 announced Shareholders will receive a dividend of US$0.27. Ex-date: 8th February 2024 Payment date: 20th February 2024 Dividend yield will be 3.1%, which is about the same as the industry average. Sustainability & Growth Dividend is well covered by earnings (35% payout ratio) and is expected to be well covered in 3 years' time (44% forecast payout ratio). The dividend has increased by an average of 10% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to decline by 11% over the next 2 years. However, it would need to fall by 61% to increase the payout ratio to a potentially unsustainable range. Price Target Changed • Feb 01
Price target increased by 8.6% to US$34.75 Up from US$32.00, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of US$33.13. Stock is down 17% over the past year. The company is forecast to post earnings per share of US$2.61 for next year compared to US$2.91 last year. Reported Earnings • Jan 30
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: US$2.91 (up from US$2.78 in FY 2022). Revenue: US$248.1m (down 2.1% from FY 2022). Net income: US$85.9m (up 5.0% from FY 2022). Profit margin: 35% (up from 32% in FY 2022). The increase in margin was driven by lower expenses. Non-performing loans: 0.23% (down from 0.38% in FY 2022). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.0%. Revenue is forecast to grow 2.0% p.a. on average during the next 2 years, compared to a 5.6% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 4% per year whereas the company’s share price has remained flat. Price Target Changed • Jan 07
Price target increased by 9.2% to US$33.50 Up from US$30.67, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of US$32.34. Stock is down 14% over the past year. The company is forecast to post earnings per share of US$2.85 for next year compared to US$2.78 last year. Recent Insider Transactions • Dec 08
Lead Independent Director recently bought US$212k worth of stock On the 6th of December, Thomas Seger bought around 7k shares on-market at roughly US$30.25 per share. This transaction amounted to 1.5% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$235k. Insiders have collectively bought US$3.8m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Nov 26
Lead Independent Director recently bought US$235k worth of stock On the 22nd of November, Thomas Seger bought around 8k shares on-market at roughly US$29.33 per share. This transaction amounted to 1.7% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$3.6m more in shares than they have sold in the last 12 months. Reported Earnings • Oct 31
Third quarter 2023 earnings: EPS exceeds analyst expectations Third quarter 2023 results: EPS: US$0.72 (down from US$0.83 in 3Q 2022). Revenue: US$61.5m (down 6.1% from 3Q 2022). Net income: US$21.5m (down 13% from 3Q 2022). Profit margin: 35% (down from 38% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.8%. Revenue is forecast to stay flat during the next 2 years compared to a 4.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 5% per year, which means it is significantly lagging earnings. Announcement • Oct 31
German American Bancorp, Inc. Declares Quarterly Cash Dividend, Payable on November 20, 2023 German American Bancorp, Inc. announced that its Board of Directors declared a regular quarterly cash dividend of $0.25 per share, which will be payable on November 20, 2023 to shareholders of record as of November 10, 2023. As previously reported, this dividend rate represents a 9% increase over the rate in effect during 2022. Recent Insider Transactions • Sep 29
Lead Independent Director recently bought US$106k worth of stock On the 27th of September, Thomas Seger bought around 4k shares on-market at roughly US$27.08 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$197k. Insiders have collectively bought US$3.2m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Sep 18
Lead Independent Director recently bought US$171k worth of stock On the 15th of September, Thomas Seger bought around 6k shares on-market at roughly US$28.45 per share. This transaction amounted to 1.3% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$197k. Insiders have collectively bought US$2.8m more in shares than they have sold in the last 12 months. Announcement • Sep 02
Bradley C. Arnett to Join German American Bank as Senior Vice President, Chief Legal Officer and Corporate Secretary, Effective September 25, 2023 German American Bancorp, Inc. announced that Bradley C. Arnett will join the company as Senior Vice President, Chief Legal Officer and Corporate Secretary effective September 25. He will report to Chairman and Chief Executive Officer D. Neil Dauby and be a member of the company’s Executive Committee. Arnett has practiced law for more than 20 years, most recently as a partner at Dentons. His focus at Dentons has been in the areas of Securities and Exchange Commission reporting and compliance; corporate governance; mergers and acquisitions; banking regulation; commercial finance; and public and private securities offerings. Arnett also brings Fortune 500 in-house counsel experience with him. Arnett has led a team of lawyers dedicated to assisting public clients with current and periodic Exchange Act reporting, SEC proxy statement filings, insider trading policies, and director board/committee compliance matters. Arnett earned his law degree from the Chase College of Law and his bachelor’s degree in accounting from Northern Kentucky University. He also carries a Certified Public Accounting license in Ohio. Recent Insider Transactions • Sep 01
Lead Independent Director recently bought US$197k worth of stock On the 30th of August, Thomas Seger bought around 7k shares on-market at roughly US$28.10 per share. This transaction amounted to 1.6% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$2.5m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Aug 15
Lead Independent Director recently bought US$166k worth of stock On the 11th of August, Thomas Seger bought around 6k shares on-market at roughly US$29.96 per share. This transaction amounted to 1.3% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth US$180k. Insiders have collectively bought US$1.8m more in shares than they have sold in the last 12 months. Recent Insider Transactions • Aug 08
Lead Independent Director recently bought US$180k worth of stock On the 4th of August, Thomas Seger bought around 6k shares on-market at roughly US$30.67 per share. This transaction amounted to 1.5% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$1.7m more in shares than they have sold in the last 12 months. Announcement • Aug 01
German American Bancorp, Inc. Declares Quarterly Cash Dividend, Payable on August 20, 2023 German American Bancorp, Inc. announced that its Board of Directors declared a regular quarterly cash dividend of $0.25 per share, which will be payable on August 20, 2023 to shareholders of record as of August 10, 2023. As previously reported, this dividend rate represents a 9% increase over the rate in effect during 2022. Reported Earnings • Jul 31
Second quarter 2023 earnings: EPS and revenues exceed analyst expectations Second quarter 2023 results: EPS: US$0.75 (down from US$0.81 in 2Q 2022). Revenue: US$62.6m (down 2.9% from 2Q 2022). Net income: US$22.1m (down 6.8% from 2Q 2022). Profit margin: 35% (down from 37% in 2Q 2022). Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) also surpassed analyst estimates by 11%. Revenue is forecast to stay flat during the next 2 years compared to a 4.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Board Change • May 24
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 9 highly experienced directors. CEO & Chairman D. Dauby was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • May 23
German American Bancorp, Inc. Announces Executive Changes German American Bancorp, Inc. (GABC) announced next steps in leadership succession by appointing current Director and Chief Executive Officer, Neil Dauby, to succeed retiring Mark Schroeder as Chairman of the Board, and Brad Rust as President for both the holding company and the bank. Mr. Dauby joined German American Bank in 2001. He served in various capacities as affiliate and regional president roles and corporate positions including Executive Vice President-Chief Commercial Banking Officer and President & Chief Operating Officer before becoming the Chief Executive Officer on January 1, 2022. Prior to joining German American, Mr. Dauby, a graduate of Western Kentucky University in Bowling Green, Kentucky, was a CPA with sixteen years of leadership experience with regional public accounting firms in various Kentucky markets, including Bowling Green and Owensboro, which are a part of German American’s footprint. In addition to being responsible for the overall vision, strategy and execution of the Company as CEO, Dauby will provide leadership, administration and oversight to the Board of Directors. Mr. Rust joined German American in 1999 in connection with the Company’s merger with 1ST Bancorp of Vincennes, Indiana. He has more than 30 years of banking experience having previously served as a federal bank examiner as well as in various capacities within the accounting and finance functions for 1ST Bancorp and German American Bank. Brad, who has been German American’s Chief Financial Officer (CFO) since 2005 and Chief Operating Officer (COO) since January 1, 2022, currently serves as Senior Executive Vice President for the Company. In his expanded role as the President, Mr. Rust will provide executive oversight over all operations of the Company, while also continuing in his present role as CFO whose duties include mergers and acquisitions, institutional research and shareholder relations. Price Target Changed • May 09
Price target decreased by 12% to US$33.33 Down from US$38.00, the current price target is an average from 3 analysts. New target price is 22% above last closing price of US$27.36. Stock is down 22% over the past year. The company is forecast to post earnings per share of US$2.74 for next year compared to US$2.78 last year. Recent Insider Transactions • May 03
Lead Independent Director recently bought US$86k worth of stock On the 1st of May, Thomas Seger bought around 3k shares on-market at roughly US$28.80 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$522k more in shares than they have sold in the last 12 months. Upcoming Dividend • May 02
Upcoming dividend of US$0.25 per share at 3.6% yield Eligible shareholders must have bought the stock before 09 May 2023. Payment date: 20 May 2023. Payout ratio is a comfortable 30% and this is well supported by cash flows. Trailing yield: 3.6%. Lower than top quartile of American dividend payers (5.0%). In line with average of industry peers (3.6%). Major Estimate Revision • May 01
Consensus EPS estimates fall by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$266.1m to US$258.1m. EPS estimate also fell from US$3.13 per share to US$2.75 per share. Net income forecast to shrink 13% next year vs 4.1% decline forecast for Banks industry in the US. Consensus price target down from US$38.00 to US$36.33. Share price fell 7.0% to US$29.07 over the past week. Reported Earnings • Apr 25
First quarter 2023 earnings: EPS and revenues miss analyst expectations First quarter 2023 results: EPS: US$0.70 (up from US$0.31 in 1Q 2022). Revenue: US$62.9m (up 8.6% from 1Q 2022). Net income: US$20.8m (up 130% from 1Q 2022). Profit margin: 33% (up from 16% in 1Q 2022). The increase in margin was primarily driven by lower expenses. Revenue missed analyst estimates by 1.7%. Earnings per share (EPS) also missed analyst estimates by 11%. Revenue is forecast to grow 2.2% p.a. on average during the next 2 years, compared to a 3.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 07
Full year 2022 earnings: EPS in line with expectations, revenues disappoint Full year 2022 results: EPS: US$2.78 (down from US$3.17 in FY 2021). Revenue: US$253.4m (up 12% from FY 2021). Net income: US$81.8m (down 2.7% from FY 2021). Profit margin: 32% (down from 37% in FY 2021). The decrease in margin was driven by higher expenses. Net interest margin (NIM): 3.45% (up from 3.31% in FY 2021). Non-performing loans: 0.38% (down from 0.49% in FY 2021). Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 4.5% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 10% per year whereas the company’s share price has increased by 12% per year. Reported Earnings • Feb 01
Full year 2022 earnings: EPS in line with expectations, revenues disappoint Full year 2022 results: EPS: US$2.78 (down from US$3.17 in FY 2021). Revenue: US$253.4m (up 12% from FY 2021). Net income: US$81.8m (down 2.7% from FY 2021). Profit margin: 32% (down from 37% in FY 2021). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 4.7% p.a. on average during the next 2 years, compared to a 6.5% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has only increased by 4% per year, which means it is significantly lagging earnings growth. Announcement • Jan 31
German American Bancorp, Inc. Declares Cash Dividend Increase, Payable on February 20, 2023 German American Bancorp, Inc. announced a 9% increase in the level of its regular quarterly cash dividend, as its Board of Directors declared a regular quarterly cash dividend of $0.25 per share, which will be payable on February 20, 2023 to shareholders of record as of February 10, 2023. Reported Earnings • Nov 01
Third quarter 2022 earnings: EPS and revenues exceed analyst expectations Third quarter 2022 results: EPS: US$0.83 (up from US$0.81 in 3Q 2021). Revenue: US$65.4m (up 11% from 3Q 2021). Net income: US$24.6m (up 14% from 3Q 2021). Profit margin: 38% (up from 37% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 1.4%. Earnings per share (EPS) also surpassed analyst estimates by 1.8%. Revenue is forecast to grow 6.1% p.a. on average during the next 3 years, compared to a 6.2% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has only increased by 5% per year, which means it is significantly lagging earnings growth. Upcoming Dividend • Aug 02
Upcoming dividend of US$0.23 per share Eligible shareholders must have bought the stock before 09 August 2022. Payment date: 20 August 2022. Payout ratio is a comfortable 34% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of American dividend payers (4.1%). Lower than average of industry peers (3.1%). Reported Earnings • Jul 26
Second quarter 2022 earnings: EPS and revenues exceed analyst expectations Second quarter 2022 results: EPS: US$0.81 (down from US$0.90 in 2Q 2021). Revenue: US$64.5m (up 9.7% from 2Q 2021). Net income: US$23.7m (flat on 2Q 2021). Profit margin: 37% (down from 41% in 2Q 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 4.9%. Earnings per share (EPS) also surpassed analyst estimates by 15%. Over the next year, revenue is forecast to grow 13%, compared to a 15% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 6% per year, which means it is significantly lagging earnings growth. Announcement • Jun 30
German American Bancorp, Inc., Annual General Meeting, May 18, 2023 German American Bancorp, Inc., Annual General Meeting, May 18, 2023. Agenda: Annual Meeting of Shareholders. Board Change • Jun 05
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 1 experienced director. 10 highly experienced directors. President, CEO & Director D. Dauby was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model.