NASDAQ$GABC

German American Bancorp Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported earnings with an increase compared to Q1 2022 and a decrease compared to Q4 2022. The company experienced challenges including deposit declines and margin compression.

German American Bancorp, Inc. reported first quarter earnings of $20.8 million, or $0.71 per share. This represents an increase from Q1 2022 but a decrease from Q4 2022. The quarter was marked by deposit declines and a compressed net interest margin due to rising deposit costs.

  • First quarter earnings were $20.8 million, or $0.71 per share.
  • Deposits declined by approximately $195 million, or 4%, on a linked quarter basis, but the core deposit base stabilized mid-quarter.
  • Total loans were down $15.8 million on a linked quarter basis, primarily due to seasonal reductions in agricultural lines of credit.
  • Net interest margin declined from 3.78% to 3.69% during the first quarter of 2023.

Headline financials

Total Revenue

$64M

Previous: $63.1M+1.4%
EPS (adj)

$0.71

Previous: $0.77-7.8%
Net Interest Margin

3.7%

Previous: 3.1%+17.9%
Efficiency Ratio

57.3%

Previous: 74.5%-23.1%
ROAA

1.4%

Previous: 0.5%+153.7%
ROAE

14.4%

Previous: 4.9%+194.9%
NPAs to Assets

0.2%

Previous: 0.2%+4.3%
NPLs to Loans

0.4%

Previous: 0.4%-7.1%
Capital Expenditures

-$1.92M

Previous: -$4.06M+52.8%
Free Cash Flow

$18.9M

Previous: $5.01M+277.1%
Net Income

$20.8M

Previous: $9.07M+129.5%
Operating Income

$42.7M

Previous: $39.9M+7.1%
Gross Profit

$64M

Previous: $57.9M+10.5%
Cash & Equivalents

$80.3M

Previous: $60.5M+32.8%
Total Assets

$6B

Previous: $6.7B-10.5%
Stock-Based Comp

$539K

Previous: $424K+27.1%

Revenue & EPS history

German American · Revenue · Quarterly

$64M

Q1 2023+1.4%vs Q1 2022
Beat estimate in 6 of 14 quarters(43%)
ActualEstimate

Revenue by segment

German American · $11.8M total across 5 segments · Q2 2022

  • Interchange Fees
    $4.17M
  • Deposit Service Charges
    $2.87M
  • Wealth Mgmt Fees
    $2.64M
  • Other Op Income
    $1.23M
  • COLI Income
    $894K

Forward guidance

While the banking industry experienced volatility in the last part of the first quarter, German American remains extremely well positioned with solid liquidity, strong capital and a diverse core deposit base which speaks to the strength and resilience of our Company. While we anticipate some potential recessionary headwinds in 2023, we remain confident in the strength of our Company

Tailwinds

  • Solid liquidity
  • Strong capital
  • Diverse core deposit base
  • Relationship-focused team of professionals
  • Committed to the vitality and growth of our Indiana and Kentucky communities

Headwinds

  • Potential recessionary headwinds in 2023

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 2023

Historical avgQ1 2023

+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

Earnings price reactions
QuarterReport dateReaction (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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