NASDAQ$GABC
German American Bancorp Inc · Q1 2021 earnings
Q1 2021 earnings · · Investor relations
Briefing
Reported strong first quarter earnings driven by improved net interest income, lower provision for credit losses, and increased non-interest revenue, partially offset by higher non-interest expense.
German American Bancorp, Inc. reported first quarter 2021 earnings of $19.6 million, or $0.74 per share, representing a significant increase from the previous year. The growth was driven by improved net interest income, lower provision for credit losses, and increased non-interest revenue, which was partially offset by a modestly higher level of non-interest expense.
- First quarter earnings increased by $7.1 million, or approximately 57% on a per share basis, compared to the first quarter of 2020.
- Net interest income increased by $2.7 million compared to the same period in 2020, driven by a $766 million increase in average total interest earning assets.
- The provision for credit losses declined by $6.7 million compared to the same period of 2020, influenced by a lower level of outstanding loans (excluding PPP loans) and a decline in certain adversely criticized assets.
- Non-interest income increased by $956 thousand, contributing to the net-income improvement.
Headline financials
Revenue & EPS history
German American · Revenue · Quarterly
$54M
Revenue by segment
German American · $11.8M total across 5 segments · Q2 2022
- Interchange Fees$4.17M—35.3%
- Deposit Service Charges$2.87M—24.3%
- Wealth Mgmt Fees$2.64M—22.4%
- Other Op Income$1.23M—10.4%
- COLI Income$894K—7.6%
Forward guidance
While the environment of historically low interest rates and net interest margins are likely to continue to be a challenge in 2021 and the coming years, we are hopeful that the worst of the economic impact of the pandemic is behind us.
Tailwinds
- Ability to increase the level of net interest income due to our materially larger balance sheet will hopefully allow us to mitigate the impact of the low interest rate environment.
- Level of interest we’re seeing from customers in terms of potential future loan demand.
- Customers’ utilization of their existing lines of credit will again begin to increase in the coming months as they experience the need for additional operating funds in response to an elevated level of economic growth and expansion as the impact of the pandemic wanes.
- Balance of 2021 and our ability to build upon our first quarter results with a cautious optimism.
- Continuing to actively originate PPP loans.
Headwinds
- Environment of historically low interest rates.
- Net interest margins are likely to continue to be a challenge in 2021 and the coming years.
- Not seen growth during the pandemic within our loan portfolio, exclusive of PPP loans.
- Lower levels of commercial, agricultural and home equity lines of credit balances resulting in lower line utilization rates during the first quarter of 2021 compared to both year-end 2020 and March 31, 2020 was the primary driver to overall loan portfolio declines excluding PPP loans.
- Elevated level of net charge-offs during the fourth quarter of 2020 was primarily related to a single commercial loan relationship that had been adversely classified for several quarters.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q1 2021
+0.2%
Avg return
Earnings day
+0.2%
Avg return
5 days after
+1.8%
Avg return
30 days after
55%
36 / 66 earnings
Positive
+7.3%
Q2 2012
Best reaction
-8.1%
Q1 2023
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | +0.4% | -1.2% | -1.2% | |
| Q4 2025 | +3.6% | +3.7% | +5.0% | |
| Q3 2025 | +1.9% | +1.1% | +1.4% | |
| Q2 2025 | -1.7% | +0.2% | +2.2% | |
| Q1 2025 | +2.1% | +2.8% | -1.1% | |
| Q4 2024 | +4.4% | +3.5% | -0.9% | |
| Q3 2024 | +2.8% | +3.1% | +15.4% | |
| Q2 2024 | -2.4% | -10.1% | -4.4% | |
| Q1 2024 | -1.6% | -0.3% | -2.9% | |
| Q4 2023 | +3.9% | -1.7% | -4.8% | |
| Q3 2023 | +0.9% | +5.5% | +7.9% | |
| Q2 2023 | +1.9% | +7.0% | -2.4% | |
| Q1 2023 | -8.1% | -8.0% | -10.4% | |
| Q4 2022 | +3.7% | +9.5% | +5.0% | |
| Q3 2022 | +0.8% | +2.1% | +1.9% | |
| Q2 2022 | +7.0% | +7.3% | +6.7% | |
| Q1 2022 | -3.6% | -5.2% | -0.1% | |
| Q4 2021 | +1.8% | +1.6% | +1.1% | |
| Q3 2021 | +0.5% | -1.1% | +8.1% | |
| Q2 2021 | +4.0% | +5.1% | +4.4% | |
| Q1 2021 | -1.2% | -2.0% | -8.1% | |
| Q4 2020 | -0.8% | -1.7% | +16.3% | |
| Q3 2020 | -4.7% | -4.5% | +7.5% | |
| Q2 2020 | -1.7% | -4.0% | -2.8% | |
| Q1 2020 | -2.3% | -2.0% | +16.9% | |
| Q4 2019 | +0.8% | -2.5% | -7.6% | |
| Q3 2019 | +0.5% | +1.9% | +3.0% | |
| Q2 2019 | +2.3% | +0.7% | -1.2% | |
| Q1 2019 | +1.2% | +2.3% | -2.9% | |
| Q4 2018 | -3.7% | -0.8% | +2.4% | |
| Q3 2018 | +3.7% | +1.7% | +2.7% | |
| Q2 2018 | -1.2% | -1.6% | +1.4% | |
| Q1 2018 | +0.5% | +3.9% | +5.9% | |
| Q4 2017 | -1.4% | +0.2% | -5.1% | |
| Q3 2017 | -7.1% | -7.0% | -1.1% | |
| Q2 2017 | -1.2% | -6.5% | -8.8% | |
| Q1 2017 | +6.3% | +0.3% | -5.5% | |
| Q4 2016 | -1.2% | +0.1% | +0.5% | |
| Q3 2016 | +1.7% | +3.2% | +22.3% | |
| Q2 2016 | +1.3% | +1.0% | +5.4% | |
| Q1 2016 | -5.5% | — | — | |
| Q4 2015 | -1.8% | — | — | |
| Q3 2015 | -3.5% | — | — | |
| Q2 2015 | -2.1% | — | — | |
| Q1 2015 | +2.9% | — | — | |
| Q4 2014 | -0.2% | — | — | |
| Q3 2014 | +5.5% | — | — | |
| Q2 2014 | +0.1% | — | — | |
| Q4 2013 | +6.5% | — | — | |
| Q1 2014 | -1.0% | — | — | |
| Q3 2013 | -0.3% | — | — | |
| Q2 2013 | +1.3% | — | — | |
| Q4 2012 | +1.3% | — | — | |
| Q1 2013 | -3.5% | — | — | |
| Q4 2010 | -3.6% | — | — | |
| Q4 2011 | -3.6% | — | — | |
| Q3 2012 | +2.9% | — | — | |
| Q2 2012 | +7.3% | — | — | |
| Q1 2011 | +0.1% | — | — | |
| Q1 2012 | +2.9% | — | — | |
| Q4 2009 | +6.2% | — | — | |
| Q3 2011 | -4.2% | — | — | |
| Q2 2011 | -6.8% | — | — | |
| Q3 2010 | -3.4% | — | — | |
| Q2 2010 | +0.5% | — | — | |
| Q1 2010 | -0.2% | — | — |
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