German American Bancorp Q3 2024 10-Q Filed

TL;DR

**GABC Q3 2024 10-Q is IN. Financials detailed.**

AI Summary

German American Bancorp, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including assets, liabilities, and equity. Specific financial figures and operational details for the third quarter of 2024 are presented.

Why It Matters

This filing provides investors and analysts with a detailed look at German American Bancorp's financial health and operational performance during the third quarter of 2024, influencing investment decisions.

Risk Assessment

Risk Level: medium — As a financial institution, German American Bancorp is subject to various market and regulatory risks inherent in the banking sector.

Key Numbers

• 2024 Q3 — Reporting Period (Indicates the specific quarter for which financial data is reported.)
• 2024-09-30 — Report End Date (The closing date of the reporting period.)
• 2023-12-31 — Prior Year End Date (Provides a point of comparison to the previous fiscal year-end.)

Key Players & Entities

• GERMAN AMERICAN BANCORP, INC. (company) — Filer
• 0000714395 (company) — Central Index Key
• 20240930 (date) — Period of Report
• 20241108 (date) — Filing Date
• 711 MAIN ST (address) — Business Street 1
• JASPER (city) — Business City
• IN (state) — Business State
• 47546 (zip_code) — Business Zip

FAQ

Filing Documents

• gabc-20240930.htm (10-Q) — 3395KB
• exhibit311-q32024.htm (EX-31.1) — 8KB
• exhibit312-q32024.htm (EX-31.2) — 9KB
• exhibit321-q32024.htm (EX-32.1) — 4KB
• exhibit322-q32024.htm (EX-32.2) — 5KB
• 0000714395-24-000054.txt ( ) — 17198KB
• gabc-20240930.xsd (EX-101.SCH) — 59KB
• gabc-20240930_cal.xml (EX-101.CAL) — 118KB
• gabc-20240930_def.xml (EX-101.DEF) — 408KB
• gabc-20240930_lab.xml (EX-101.LAB) — 831KB
• gabc-20240930_pre.xml (EX-101.PRE) — 656KB
• gabc-20240930_htm.xml (XML) — 4457KB

FINANCIAL INFORMATION 5

PART I. FINANCIAL INFORMATION 5

Unaudited Financial Statements 5

Item 1. Unaudited Financial Statements 5 Consolidated Balance Sheets – September 30, 2024 and December 31, 2023 5 Consolidated Statements of Income – Three Months Ended September 30, 2024 and 2023 6 Consolidated Statements of Income – Nine Months Ended September 30, 2024 and 2023 7 Consolidated Statements of Comprehensive Income – Three and Nine Months Ended September 30, 2024 and 2023 8 Consolidated Statements of Changes in Shareholders' Equity - Three and Nine Months Ended September 30, 2024 and 2023 9 Consolidated Statements of Cash Flows – Nine Months Ended September 30, 2024 and 2023 11

Notes to Consolidated Financial Statements – September 30, 2024 12

Notes to Consolidated Financial Statements – September 30, 2024 12

Management's Discussion and Analysis of Financial Condition and Results of Operations 44

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 44

Quantitative and Qualitative Disclosures About Market Risk 59

Item 3. Quantitative and Qualitative Disclosures About Market Risk 59

Controls and Procedures 61

Item 4. Controls and Procedures 61

OTHER INFORMATION 62

PART II. OTHER INFORMATION 62

Legal Proceedings 62

Item 1. Legal Proceedings 62

Risk Factors 62

Item 1A. Risk Factors 62

Unregistered Sales of Equity Securities and Use of Proceeds 62

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 62

Defaults Upon Senior Securities 62

Item 3. Defaults Upon Senior Securities 62

Mine Safety Disclosures 62

Item 4. Mine Safety Disclosures 62

Other Information 62

Item 5. Other Information 62

Exhibits 63

Item 6. Exhibits 63 SIGNATURES 64 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 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 GAI: German American Insurance, Inc. Heartland: Heartland BancCorp, which is party to an Agreement and Plan of Reorganization with the Company, pursuant to which it will be merged with and into the Company, subject to certain conditions LIBOR: London Interbank Offered Rate MBS: Mortgage-backed securities NPV: Net portfo

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) September 30, 2024 December 31, 2023 ASSETS Cash and Due from Banks $ 77,652 $ 78,805 Federal Funds Sold and Other Short-term Investments 117,903 36,525 Cash and Cash Equivalents 195,555 115,330 Interest-bearing Time Deposits with Banks 500 500 Securities Available-for-Sale, at Fair Value (Amortized Cost $ 1,769,174 for September 30, 2024; Amortized Cost $ 1,871,260 for December 31, 2023; No Allowance for Credit Losses) 1,547,994 1,596,832 Other Investments 353 353 Loans Held-for-Sale, at Fair Value 9,173 5,226 Loans 4,069,355 3,977,900 Less: Unearned Income ( 8,206 ) ( 6,818 ) Allowance for Credit Losses ( 44,124 ) ( 43,765 ) Loans, Net 4,017,025 3,927,317 Stock in FHLB of Indianapolis and Other Restricted Stock, at Cost 14,488 14,687 Premises, Furniture and Equipment, Net 105,419 106,776 Other Real Estate — — Goodwill 179,025 180,357 Intangible Assets 4,523 6,307 Company Owned Life Insurance 86,880 85,840 Accrued Interest Receivable and Other Assets 99,972 112,673 TOTAL ASSETS $ 6,260,907 $ 6,152,198 LIABILITIES Non-interest-bearing Demand Deposits $ 1,406,405 $ 1,493,160 Interest-bearing Demand, Savings, and Money Market Accounts 2,955,306 2,992,761 Time Deposits 909,568 767,042 Total Deposits 5,271,279 5,252,963 FHLB Advances and Other Borrowings 204,153 193,937 Accrued Interest Payable and Other Liabilities 40,912 41,740 TOTAL LIABILITIES 5,516,344 5,488,640 SHAREHOLDERS' EQUITY Common Stock, no par value, $ 1 stated value; 45,000,000 shares authorized 29,679 29,585 Additional Paid-in Capital 391,583 389,411 Retained Earnings 498,340 461,622 Accumulated Other Comprehensive Income (Loss) ( 175,039 ) ( 217,060 ) TOTAL SHAREHOLDERS' EQUITY 744,563 663,558 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 6,260,907 $ 6,152,198 End of period shares issued and o

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 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 ce

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 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. Issued But Not Yet Effective In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within annual periods beginning after December 15, 2024. Retrospective application is required. The Company doesn't expect this guidance to have a material impact on its segment disclosure. In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvement to Income Tax Disclosures". This updated accounting guidance requires expanded income tax disclosures, including the disaggregation of existing disclosures related to the tax rate reconciliation and income taxes paid. This guidance is effective for annual periods beginning after December 15, 2024 and will be applied on a prospective basis with the option to apply retrospectively. The Company is reviewing this guidance but doesn't expect it to have a material impact on the Company's tax disclosures. NOTE 3 – Sale of Insurance Assets Effective June 1, 2024, the Company completed a sale of substantially all of the assets of its wholly-owned subsidiary, German American Insurance, Inc. ("GAI"), to Hilb Group and ceased insurance-related activities for the Company. The all-cash sales price totaled $ 40,000 and resulted in an after-tax gain, net of transaction costs, of approximately $ 27,476 , or $ 0.93 on a pe

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2024 (unaudited, dollars in thousands except share and per share data) NOTE 4 – Per Share Data The computation of Basic Earnings per Share and Diluted Earnings per Share are as follows: Three Months Ended September 30, 2024 2023 Basic Earnings per Share: Net Income $ 21,048 $ 21,451 Weighted Average Shares Outstanding 29,679,464 29,573,461 Basic Earnings per Share $ 0.71 $ 0.73 Diluted Earnings per Share: Net Income $ 21,048 $ 21,451 Weighted Average Shares Outstanding 29,679,464 29,573,461 Potentially Dilutive Shares, Net — — Diluted Weighted Average Shares Outstanding 29,679,464 29,573,461 Diluted Earnings per Share $ 0.71 $ 0.73 For the three months ended September 30, 2024 and 2023, there were no anti-dilutive shares. Nine Months Ended September 30, 2024 2023 Basic Earnings per Share: Net Income $ 60,600 $ 64,381 Weighted Average Shares Outstanding 29,649,020 29,551,558 Basic Earnings per Share $ 2.04 $ 2.18 Diluted Earnings per Share: Net Income $ 60,600 $ 64,381 Weighted Average Shares Outstanding 29,649,020 29,551,558 Potentially Dilutive Shares, Net — — Diluted Weighted Average Shares Outstanding 29,649,020 29,551,558 Diluted Earnings per Share $ 2.04 $ 2.18 For the nine months ended September 30, 2024 and 2023, there were no anti-dilutive shares. 14 GERMAN AMERICAN BANCORP, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2024 (unaudited, dollars in thousands except share and per share data) NOTE 5 – 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 September 30, 2024 U.S. Treasury $ 116,385 $ 78 $ — $ 116,463 Obligations of State and Political Subdivisions 583,453 43 ( 105,095 ) 478,401 MBS/CMO 812,528 5,586 ( 93,042 ) 725,072 US Gov't Sponsored Entities & Agencies 256,808 926 ( 29,676 ) 228,058 Total $ 1,769,174 $ 6,633 $ ( 227,813 ) $ 1,547,994 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 mortgage-backed securi

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