German American Bancorp, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>German American Bancorp, Inc. (GABC) filed its Q1 2024 10-Q report, detailing financial performance and corporate information.</b>

AI Summary

GERMAN AMERICAN BANCORP, INC. (GABC) filed a Quarterly Report (10-Q) with the SEC on May 8, 2024. Filing is a 10-Q for German American Bancorp, Inc. (GABC) for the period ending March 31, 2024. The company is classified under SIC code 6022 (State Commercial Banks). Incorporated in Indiana, with fiscal year end on December 31. Business and mailing address is 711 Main St, Jasper, IN 47546. Previous company names included GAB Bancorp.

Why It Matters

For investors and stakeholders tracking GERMAN AMERICAN BANCORP, INC., this filing contains several important signals. This filing provides a quarterly update on the financial health and operational status of German American Bancorp, Inc., crucial for investors to assess performance. Understanding the details within this 10-Q allows stakeholders to evaluate the bank's position in the commercial banking sector and its adherence to regulatory standards.

Risk Assessment

Risk Level: low — GERMAN AMERICAN BANCORP, INC. shows low risk based on this filing. The filing is a standard quarterly report (10-Q) for a well-established commercial bank, indicating routine financial disclosure rather than significant new risks.

Analyst Insight

Review the detailed financial statements and segment performance within the 10-Q to understand revenue drivers and expense management for Q1 2024.

Key Numbers

• 2024-03-31 — Report Date (Conformed period of report)
• 2024-05-08 — Filing Date (Filed as of date)
• 2024 Q1 — Reporting Quarter (Filing details)
• 1231 — Fiscal Year End (Company data)

Key Players & Entities

• GERMAN AMERICAN BANCORP, INC. (company) — Filer name
• GABC (company) — Ticker symbol
• 0000714395 (company) — Central Index Key
• 6022 (company) — Standard Industrial Classification
• IN (company) — State of incorporation
• 711 MAIN ST (company) — Business address street 1
• JASPER (company) — Business address city
• 47546 (company) — Business address zip

FAQ

Industry Context

German American Bancorp, Inc. operates within the State Commercial Banks industry, a sector characterized by lending, deposit-taking, and other financial services.

Regulatory Implications

As a commercial bank, the company is subject to regulations from various financial authorities, including those overseen by the SEC.

What Investors Should Do

1. Analyze the company's revenue streams and expense structure for Q1 2024.
2. Review any disclosed risk factors or management discussions for potential insights into operational challenges or opportunities.
3. Compare key financial metrics with previous periods to identify trends in performance.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-08: Filing Date — Date the 10-Q report was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a comprehensive overview of a company's financial performance and condition for a specific quarter.)

SIC Code

Standard Industrial Classification code used to categorize businesses. (Helps in understanding the industry in which German American Bancorp, Inc. operates (State Commercial Banks).)

Year-Over-Year Comparison

This is the initial filing data extracted for the 10-Q report ending March 31, 2024. Comparative data from previous filings would be needed for a full analysis.

Filing Documents

• gabc-20240331.htm (10-Q) — 2813KB
• exhibit311-q12024.htm (EX-31.1) — 8KB
• exhibit312-q12024.htm (EX-31.2) — 9KB
• exhibit321-q12024.htm (EX-32.1) — 4KB
• exhibit322-q12024.htm (EX-32.2) — 5KB
• 0000714395-24-000028.txt (&nbsp;) — 14878KB
• gabc-20240331.xsd (EX-101.SCH) — 52KB
• gabc-20240331_cal.xml (EX-101.CAL) — 110KB
• gabc-20240331_def.xml (EX-101.DEF) — 389KB
• gabc-20240331_lab.xml (EX-101.LAB) — 764KB
• gabc-20240331_pre.xml (EX-101.PRE) — 616KB
• gabc-20240331_htm.xml (XML) — 3776KB

FINANCIAL INFORMATION 5

PART I. FINANCIAL INFORMATION 5

Unaudited Financial Statements 5

Item 1. Unaudited Financial Statements 5 Consolidated Balance Sheets – March 31, 2024 and December 31, 2023 5 Consolidated Statements of Income – Three Months Ended March 31, 2024 and 2023 6 Consolidated Statements of Comprehensive Income (Loss) – Three Months Ended March 31, 2024 and 2023 7 Consolidated Statements of Changes in Shareholders' Equity - Three Months Ended March 31, 2024 and 2023 8 Consolidated Statements of Cash Flows – Three Months Ended March 31, 2024 and 2023 9

Notes to Consolidated Financial Statements – March 31, 2024 10

Notes to Consolidated Financial Statements – March 31, 2024 10

Management's Discussion and Analysis of Financial Condition and Results of Operations 36

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 36

Quantitative and Qualitative Disclosures About Market Risk 47

Item 3. Quantitative and Qualitative Disclosures About Market Risk 47

Controls and Procedures 48

Item 4. Controls and Procedures 48

OTHER INFORMATION 49

PART II. OTHER INFORMATION 49

Legal Proceedings 49

Item 1. Legal Proceedings 49

Risk Factors 49

Item 1A. Risk Factors 49

Unregistered Sales of Equity Securities and Use of Proceeds 49

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 49

Defaults Upon Senior Securities 49

Item 3. Defaults Upon Senior Securities 49

Mine Safety Disclosures 49

Item 4. Mine Safety Disclosures 49

Other Information 49

Item 5. Other Information 49

Exhibits 50

Item 6. Exhibits 50 SIGNATURES 51 3 GLOSSARY OF TERMS AND ACRONYMS As used in this Report, references to "Company," "we," "our," "us," and similar terms refer to German American Bancorp, Inc. and its consolidated subsidiaries as a whole. Occasionally, we will refer to the term "parent company" or "holding company" when we mean to refer to only German American Bancorp, Inc. and the term "Bank" when we mean to refer only to German American Bank, the Company's bank subsidiary. The terms and acronyms identified below are used throughout this Report, including the Notes to Consolidated Financial Statements. You may find it helpful to refer to this Glossary as you read this Report. 2019 ESPP: German American Bancorp, Inc. 2019 Employee Stock Purchase Plan 2019 LTI Plan: German American Bancorp, Inc. 2019 Long-Term Equity Incentive Plan ASU: Accounting Standards Update Basel III Rules: Regulatory capital rules agreed to by the Basel Committee on Banking Supervision, as issued by the FRB and OCC and published in the Federal Register on October 11, 2013 CARES Act: Coronavirus Aid, Relief and Economic Security Act CECL: Current expected credit losses, which are the subject of an accounting standard under GAAP CET1: Common Equity Tier 1 CMO: Collateralized mortgage obligations CRE: Commercial Real Estate Dodd-Frank Act: Dodd-Frank Wall Street Reform and Consumer Protection Act FASB: Financial Accounting Standards Board FDIC: Federal Deposit Insurance Corporation federal banking regulators: The FRB, the OCC, and the FDIC, collectively FHLB: Federal Home Loan Bank FRB: Board of Governors of the Federal Reserve System GAAP: Generally Accepted Accounting Principles in the United States of America LIBOR: London Interbank Offered Rate MBS: Mortgage-backed securities NPV: Net portfolio value OCC: Office of the Comptroller of the Currency SEC: Securities and Exchange Commission SOFR: Secured Overnight Funding Rate recommended as an alternative to LIBOR b

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Unaudited Financial Statements

Item 1. Unaudited Financial Statements GERMAN AMERICAN BANCORP, INC. CONSOLIDATED BALANCE SHEETS (unaudited, dollars in thousands except share and per share data) March 31, 2024 December 31, 2023 ASSETS Cash and Due from Banks $ 52,839 $ 78,805 Federal Funds Sold and Other Short-term Investments 70,631 36,525 Cash and Cash Equivalents 123,470 115,330 Interest-bearing Time Deposits with Banks 500 500 Securities Available-for-Sale, at Fair Value (Amortized Cost $ 1,838,911 for March 31, 2024; Amortized Cost $ 1,871,260 for December 31, 2023; No Allowance for Credit Losses) 1,539,270 1,596,832 Other Investments 353 353 Loans Held-for-Sale, at Fair Value 10,325 5,226 Loans 3,978,919 3,977,900 Less: Unearned Income ( 7,009 ) ( 6,818 ) Allowance for Credit Losses ( 43,754 ) ( 43,765 ) Loans, Net 3,928,156 3,927,317 Stock in FHLB of Indianapolis and Other Restricted Stock, at Cost 14,630 14,687 Premises, Furniture and Equipment, Net 106,030 106,776 Other Real Estate — — Goodwill 180,357 180,357 Intangible Assets 5,665 6,307 Company Owned Life Insurance 86,294 85,840 Accrued Interest Receivable and Other Assets 116,879 112,673 TOTAL ASSETS $ 6,111,929 $ 6,152,198 LIABILITIES Non-interest-bearing Demand Deposits $ 1,463,933 $ 1,493,160 Interest-bearing Demand, Savings, and Money Market Accounts 2,918,459 2,992,761 Time Deposits 836,955 767,042 Total Deposits 5,219,347 5,252,963 FHLB Advances and Other Borrowings 191,810 193,937 Accrued Interest Payable and Other Liabilities 45,518 41,740 TOTAL LIABILITIES 5,456,675 5,488,640 SHAREHOLDERS' EQUITY Common Stock, no par value, $ 1 stated value; 45,000,000 shares authorized 29,669 29,585 Additional Paid-in Capital 389,851 389,411 Retained Earnings 472,689 461,622 Accumulated Other Comprehensive Income (Loss) ( 236,955 ) ( 217,060 ) TOTAL SHAREHOLDERS' EQUITY 655,254 663,558 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 6,111,929 $ 6,152,198 End of period shares issued and outstand

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (unaudited, dollars in thousands except share and per share data) NOTE 1 – Basis of Presentation and Market Conditions German American Bancorp, Inc. operates primarily in the banking industry. The accounting and reporting policies of German American Bancorp, Inc. and its subsidiaries (hereinafter collectively referred to as the "Company") conform to U.S. generally accepted accounting principles. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the periods reported have been included in the accompanying unaudited consolidated financial statements, and all such adjustments are of a normal recurring nature. It is suggested that these consolidated financial statements and notes be read in conjunction with the financial statements and notes thereto in the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Certain items included in the prior period financial statements were reclassified to conform to the current presentation. There was no effect on net income or total shareholders' equity based on these reclassifications. NOTE 2 - Recent Accounting Pronouncements Recently Adopted Accounting Guidance In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting". These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certai

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (unaudited, dollars in thousands except share and per share data) NOTE 2 - Recent Accounting Pronouncements (continued) prescribes specific information that reporting entities must disclose about tax credit investments each period. The Company adopted this standard and there was no impact on the Company's financial statements or disclosures. NOTE 3 – Per Share Data The computation of Basic Earnings per Share and Diluted Earnings per Share are as follows: Three Months Ended March 31, 2024 2023 Basic Earnings per Share: Net Income $ 19,022 $ 20,807 Weighted Average Shares Outstanding 29,599,491 29,507,446 Basic Earnings per Share $ 0.64 $ 0.71 Diluted Earnings per Share: Net Income $ 19,022 $ 20,807 Weighted Average Shares Outstanding 29,599,491 29,507,446 Potentially Dilutive Shares, Net — — Diluted Weighted Average Shares Outstanding 29,599,491 29,507,446 Diluted Earnings per Share $ 0.64 $ 0.71 For the three months ended March 31, 2024 and 2023, there were no anti-dilutive shares. NOTE 4 – Securities The amortized cost, unrealized gross gains and losses recognized in accumulated other comprehensive income (loss), and fair value of securities available-for-sale were as follows: Securities Available-for-Sale: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2024 U.S. Treasury $ 49,680 $ 6 $ — $ 49,686 Obligations of State and Political Subdivisions 826,416 316 ( 137,972 ) 688,760 MBS/CMO 746,250 17 ( 123,251 ) 623,016 US Gov't Sponsored Entities & Agencies 216,565 — ( 38,757 ) 177,808 Total $ 1,838,911 $ 339 $ ( 299,980 ) $ 1,539,270 December 31, 2023 U.S. Treasury $ — $ — $ — $ — Obligations of State and Political Subdivisions 889,940 1,309 ( 122,374 ) 768,875 MBS/CMO 761,025 28 ( 116,013 ) 645,040 US Gov't Sponsored Entities & Agencies 220,295 — ( 37,378 ) 182,917 Total $ 1,871,260 $ 1,337 $ ( 275,765 ) $ 1,596,832 All mortga

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (unaudited, dollars in thousands except share and per share data) NOTE 4 - Securities (continued) Entities & Agencies in the above table include securities that have underlying collateral of equipment, machinery and commercial real estate. The amortized cost and fair value of securities available-for-sale at March 31, 2024 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay certain obligations with or without call or prepayment penalties. Mortgage-backed Securities are not due at a single maturity date and are shown separately. Securities Available-for-Sale: Amortized Cost Fair Value Due in one year or less $ 51,185 $ 51,185 Due after one year through five years 12,108 12,036 Due after five years through ten years 50,483 46,605 Due after ten years 762,320 628,620 MBS/CMO 746,250 623,016 US Gov't Sponsored Entities & Agencies 216,565 177,808 Total $ 1,838,911 $ 1,539,270 Proceeds from the Sales of Securities are summarized below: Three Months Ended Three Months Ended March 31, 2024 March 31, 2023 Proceeds from Sales $ 62,162 $ 93,752 Gross Gains on Sales 360 257 Gross Losses on Sales 325 255 Income Taxes on Gross Gains 7 — The carrying value of securities pledged to secure repurchase agreements, public and trust deposits, and for other purposes as required by law was $ 380,442 and $ 366,576 as of March 31, 2024 and December 31, 2023, respectively. Below is a summary of securities with unrealized losses as of March 31, 2024 and December 31, 2023, presented by length of time the securities have been in a continuous unrealized loss position: Less than 12 Months 12 Months or More Total March 31, 2024 Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Obligations of State and Political Subdivisions $ 18,497 $ ( 256 ) $ 653,099 $ ( 137,716 ) $ 671,5

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS March 31, 2024 (unaudited, dollars in thousands except share and per share data) NOTE 4 - Securities (continued) Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. For available-for-sale debt securities in an unrealized loss position, the Company assesses whether we intend to sell, or it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security's amortized cost basis is reduced to fair value through income. For available-for sale debt securities that do not meet the criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security and the issuer, among other factors. If this assessment indicates that a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value of the security is less than its amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes. The increase in unrealized losses from December 31, 2023 to March 31, 2024 was primarily the result of fair value adjustments caused by the change in market interest rates. There was no allowance for credit losses for available-for-sale debt se

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