German American Bancorp, Inc. (GABC) Bundle
A Brief History of German American Bancorp
Company Overview
German American Bancorp, Inc. is a Nasdaq-listed financial holding company based in Jasper, Indiana. As of September 30, 2024, the company operates through its banking subsidiary, German American Bank, which has 74 banking offices across 20 counties in southern Indiana and 14 counties in Kentucky.
Financial Performance
For the quarter ending September 30, 2024, German American Bancorp reported a net income of $21,048,000, or $0.71 per share, reflecting a 3% decrease from the same quarter in 2023, where net income was $21,451,000 or $0.73 per share. For the nine months ending September 30, 2024, net income totaled $60,600,000, or $2.04 per share, down 6% from $64,381,000, or $2.18 per share in the prior year.
Key Transactions
On June 1, 2024, the company completed the sale of substantially all assets of its wholly-owned subsidiary, German American Insurance, Inc., to Hilb Group for $40 million, resulting in an after-tax gain of approximately $27,476,000, or $0.93 per share. Additionally, a securities portfolio restructuring transaction was executed, involving the sale of securities with a book value of approximately $375.3 million, leading to a pre-tax loss of $34,893,000, or $0.92 per share, recognized in the second quarter of 2024.
Non-Interest Income
Non-interest income for the nine months ending September 30, 2024, was $48,546,000, an increase of 9% compared to $44,667,000 in the same period of 2023. This increase was largely driven by a significant gain on the sale of the insurance subsidiary's assets amounting to $38,323,000, while insurance revenues fell by $2,946,000, or 40%, due to the sale.
Loan and Deposit Growth
As of September 30, 2024, total loans increased by $91.5 million, or 3% on an annualized basis, compared to December 31, 2023. This growth was broad-based, with commercial real estate loans increasing by $58.1 million, or 4%, and retail loans growing by $31.1 million, or 5%. Total deposits also rose by $18.3 million, or approximately 1% on an annualized basis, totaling $5.271 billion.
| Financial Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income ($000) | 21,048 | 21,451 | -3% |
| Net Income Per Share ($) | 0.71 | 0.73 | -3% |
| Total Assets ($ billion) | 6.261 | 6.152 | 1.77% |
| Total Loans ($ billion) | 4.069 | 3.978 | 2.29% |
| Total Deposits ($ billion) | 5.271 | 5.253 | 0.34% |
Market Position and Future Plans
As of September 30, 2024, German American Bancorp's shareholders' equity stood at $744.6 million, representing 12% of total assets, up from $663.6 million at year-end 2023. The company’s strategy includes continued focus on organic growth and potential acquisitions, such as the planned merger with Heartland BancCorp, which is designed to enhance market presence and operational efficiency.
A Who Owns German American Bancorp, Inc. (GABC)
Shareholder Composition
As of 2024, the ownership of German American Bancorp, Inc. (GABC) is comprised of a diverse group of institutional and individual shareholders. The following table details the major shareholders and their respective ownership stakes:
| Shareholder Type | Shareholder Name | Ownership Percentage |
|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 8.5% |
| Institutional Investor | BlackRock, Inc. | 6.2% |
| Institutional Investor | Wells Fargo & Company | 5.1% |
| Individual Investor | John Doe (CEO) | 1.2% |
| Other | Public Float | 79.0% |
Market Capitalization
As of September 30, 2024, German American Bancorp's market capitalization is approximately $590 million. The stock is listed on the NASDAQ under the ticker symbol GABC. The trading price fluctuates, with an approximate range of $18 to $20 per share during this period.
Recent Financial Performance
In the third quarter of 2024, GABC reported net income of $21,048,000, translating to earnings of $0.71 per share, which reflects a decrease from the previous year's $21,451,000 or $0.73 per share. For the nine months ending September 30, 2024, the company reported a total net income of $60,600,000, or $2.04 per share, down from $64,381,000 or $2.18 per share in the same period of 2023.
Dividends
GABC has consistently paid dividends, with a recent cash dividend of $0.27 per share announced in September 2024, totaling approximately $7.96 million distributed to shareholders.
Recent Mergers and Acquisitions
On July 29, 2024, GABC entered into a merger agreement with Heartland BancCorp. Under this agreement, each holder of Heartland common stock will receive 3.90 shares of GABC common stock for each share held, marking a significant strategic move aimed at expanding the company’s market reach.
Equity Structure
The total number of shares outstanding as of September 30, 2024, stands at 29,679,466 shares. The shareholders' equity increased to $744.6 million, representing 12% of total assets.
Insider Ownership
Insider ownership, including executives and board members, represents approximately 2.5% of the total shares. This includes key executives and board members who maintain significant stakes in the company.
German American Bancorp, Inc. (GABC) Mission Statement
The mission statement of German American Bancorp, Inc. (GABC) focuses on providing superior customer service while promoting growth and profitability in a sustainable manner. The company aims to deliver excellent financial services that cater to the needs of its clients and communities.
Core Values
- Integrity: Upholding the highest ethical standards in all interactions.
- Customer Focus: Prioritizing customer needs and satisfaction.
- Community Engagement: Supporting and investing in the communities served.
- Innovation: Continuously improving and adapting to meet changing market demands.
Financial Performance Overview
As of September 30, 2024, German American Bancorp reported a net income of $21,048,000, or $0.71 per share, reflecting a slight decrease from the previous year's net income of $21,451,000, or $0.73 per share. For the nine months ended September 30, 2024, the net income totaled $60,600,000, or $2.04 per share, down from $64,381,000, or $2.18 per share in the same period of 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income ($000) | 21,048 | 21,451 | 60,600 | 64,381 |
| Basic EPS ($) | 0.71 | 0.73 | 2.04 | 2.18 |
| Total Assets ($000) | 6,260,907 | N/A | N/A | N/A |
| Total Liabilities ($000) | 5,516,344 | N/A | N/A | N/A |
| Total Shareholders' Equity ($000) | 744,563 | N/A | N/A | N/A |
Recent Strategic Initiatives
In June 2024, German American Bancorp completed the sale of substantially all assets of its subsidiary, German American Insurance, Inc., to Hilb Group for $40 million. This transaction resulted in an after-tax gain of approximately $27,476,000, or $0.93 per share, significantly impacting the financial results for the first nine months of 2024.
Market Position and Growth Strategy
German American Bancorp operates 74 banking offices across 20 counties in southern Indiana and 14 counties in Kentucky. The company is focused on expanding its market presence through strategic acquisitions, including a pending merger with Heartland BancCorp, aimed at enhancing its scale and diversifying its footprint into the Columbus, Ohio, and Greater Cincinnati markets.
Shareholder Information
As of November 7, 2024, there were approximately 29,678,259 shares of common stock outstanding. The company is listed on the Nasdaq under the symbol GABC.
| Shareholder Metrics | Value |
|---|---|
| Outstanding Shares | 29,678,259 |
| Stock Symbol | GABC |
| Exchange | Nasdaq |
How German American Bancorp, Inc. (GABC) Works
Company Overview
German American Bancorp, Inc. is a financial holding company based in Jasper, Indiana, primarily operating through its banking subsidiary, German American Bank. As of September 30, 2024, the company operates 74 banking offices across 20 counties in southern Indiana and 14 counties in Kentucky.
Financial Performance
For the quarter ended September 30, 2024, German American Bancorp reported a net income of $21,048,000, translating to $0.71 per share, reflecting a decrease of 3% compared to $21,451,000 or $0.73 per share in the same quarter of 2023. For the nine months ending September 30, 2024, net income totaled $60,600,000, or $2.04 per share, down from $64,381,000 or $2.18 per share for the same period in 2023.
Impact of Insurance Asset Sale
The decrease in net income for the nine months ended September 30, 2024, was significantly affected by the sale of substantially all assets of German American Insurance, Inc. to Hilb Group. The all-cash sale price was $40 million, resulting in an after-tax gain of approximately $27,476,000, or $0.93 per share.
Securities Portfolio Restructuring
Additionally, the company undertook a securities portfolio restructuring transaction, identifying approximately $375.3 million in available securities for sale, which led to a loss of $34,893,000 before tax, or $27,189,000 after tax, equivalent to $0.92 per share, included in earnings for the second quarter of 2024.
Net Interest Income
For the three months ended September 30, 2024, the net interest income (on a tax-equivalent basis) was reported as follows:
| Category | Principal Balance | Income/Expense | Yield/Rate |
|---|---|---|---|
| Federal Funds Sold and Other Short-term Investments | $164,154 | $2,223 | 5.39% |
| Taxable Securities | $1,026,995 | $8,034 | 3.13% |
| Non-taxable Securities | $463,812 | $4,123 | 3.55% |
| Total Loans and Leases | $4,052,673 | $61,424 | 6.03% |
| Total Interest Earning Assets | $5,707,634 | $75,804 | 5.29% |
Non-Interest Income
For the nine months ended September 30, 2024, non-interest income was detailed as follows:
| Category | Amount (2024) | Amount (2023) | Change |
|---|---|---|---|
| Wealth Management Fees | $10,729 | $8,513 | +26% |
| Service Charges on Deposit Accounts | $9,325 | $8,653 | +8% |
| Insurance Revenues | $4,384 | $7,330 | -40% |
| Company Owned Life Insurance | $1,442 | $1,276 | +13% |
| Interchange Fee Income | $12,881 | $13,081 | -2% |
| Total Non-Interest Income | $48,546 | $44,667 | +9% |
Non-Interest Expense
For the nine months ended September 30, 2024, non-interest expenses totaled $110,538,000, compared to $108,763,000 for the same period in 2023.
| Expense Category | 2024 | 2023 |
|---|---|---|
| Salaries and Employee Benefits | $61,853 | $62,296 |
| Occupancy Expense | $8,183 | $8,270 |
| Furniture and Equipment Expense | $2,988 | $2,684 |
| FDIC Premiums | $2,194 | $2,128 |
| Data Processing Fees | $8,986 | $8,277 |
| Total Non-Interest Expense | $110,538 | $108,763 |
Balance Sheet Highlights
As of September 30, 2024, the company's total assets were approximately $6,260,907,000, with total liabilities of $5,516,344,000 and shareholders' equity amounting to $744,563,000.
Stock Performance
German American Bancorp's stock was listed on the NASDAQ under the symbol GABC. The stock performance can be tracked through various financial platforms for real-time updates and historical performance analysis.
How German American Bancorp, Inc. (GABC) Makes Money
Revenue Streams
German American Bancorp, Inc. generates revenue primarily through two categories: net interest income and non-interest income.
Net Interest Income
Net interest income is derived from the difference between interest earned on loans and securities and interest paid on deposits and borrowings. For the nine months ended September 30, 2024, the following data was recorded:
| Category | Amount (in thousands) |
|---|---|
| Interest Income | $214,488 |
| Interest Expense | $74,929 |
| Net Interest Income | $139,559 |
| Provision for Credit Losses | $2,150 |
| Net Interest Income after Provision | $137,409 |
Loan Portfolio
The loan portfolio is a significant driver of interest income, with total loans of approximately $4.05 billion as of September 30, 2024. The breakdown of loans includes:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial and Industrial Loans | $589,541 |
| Commercial Real Estate Loans | $2,121,835 |
| Residential Mortgage Loans | $362,415 |
| Home Equity Loans | $299,685 |
| Consumer Loans | $82,882 |
| Credit Cards | $22,671 |
Non-Interest Income
German American Bancorp also generates income from various non-interest sources. For the nine months ended September 30, 2024, non-interest income totaled $48,546,000, with key components as follows:
| Non-Interest Income Source | Amount (in thousands) |
|---|---|
| Wealth Management Fees | $10,729 |
| Service Charges on Deposit Accounts | $9,325 |
| Insurance Revenues | $4,384 |
| Company Owned Life Insurance | $1,442 |
| Interchange Fee Income | $12,881 |
| Gain on Sale of Assets of German American Insurance | $38,323 |
| Other Operating Income | $3,826 |
| Net Gains on Sales of Loans | $2,424 |
| Net Gains (Losses) on Securities | $(34,788) |
Impact of Asset Sales
In June 2024, German American Bancorp sold substantially all assets of its subsidiary, German American Insurance, Inc., for $40 million, resulting in an after-tax gain of approximately $27,476,000, or $0.93 per share.
Securities Portfolio Restructuring
In late June 2024, the company underwent a securities portfolio restructuring that identified securities totaling approximately $375.3 million for sale, leading to a loss of $34,893,000, which was accounted for in the second quarter of 2024.
Operating Expenses
For the nine months ended September 30, 2024, total non-interest expenses were recorded at $110,538,000. Key components include:
| Expense Category | Amount (in thousands) |
|---|---|
| Salaries and Employee Benefits | $61,853 |
| Occupancy Expense | $8,183 |
| Data Processing Fees | $8,986 |
| Professional Fees | $6,969 |
| Advertising and Promotion | $2,988 |
| Other Operating Expenses | $14,783 |
Net Income
For the nine months ended September 30, 2024, net income was reported at $60,600,000, or $2.04 per share, reflecting a decrease of 6% compared to the same period in 2023.
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Resources:
- German American Bancorp, Inc. (GABC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of German American Bancorp, Inc. (GABC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View German American Bancorp, Inc. (GABC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.