NASDAQ$GABC

German American Bancorp Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Reported strong operating performance with earnings of $23.7 million, resulting in the Company's second highest level of reported earnings per share.

German American Bancorp, Inc. reported strong operating performance in the second quarter of 2022, with earnings of $23.7 million, or $0.81 per share. The second quarter earnings performance was driven by improved net interest margin and continued strong credit metrics, as well as increased interchange fee income and deposit service charges, and improved efficiencies in non-interest expenses resulting from the CUB merger.

  • Earnings of $23.7 million, or $0.81 per share.
  • Net interest income increased $2.7 million from the first quarter of 2022 and $9.7 million compared to the same quarter 2021.
  • Total assets increased $1.12 billion, compared to June 30, 2021.
  • Non-interest expenses declined by $12.5 million, or 26%, in the second quarter of 2022, as compared to the first quarter of 2022

Headline financials

Total Revenue

$64.8M

Previous: $53.8M+20.4%
EPS (adj)

$0.81

Previous: $0.90-10.0%
Net Interest Margin

3.4%

Previous: 3.3%+1.5%
Efficiency Ratio

53.8%

Previous: 52.9%+1.7%
ROAA

1.4%

No prior period
ROAE

15.9%

No prior period
ACL to Loans

1.2%

No prior period
NPAs to Assets

0.2%

Previous: 0.3%-32.4%
NPLs to Loans

0.4%

Previous: 0.6%-28.1%
Loans 30-89 Days PD

0.3%

Previous: 0.1%+116.7%
Capital Expenditures

-$5.21M

Previous: -$1.8M-190.3%
Free Cash Flow

$18.5M

Previous: $22M-15.8%
Net Income

$23.7M

Previous: $23.8M-0.3%
Operating Income

$52.7M

Previous: $38.3M+37.5%
Gross Profit

$64.8M

Previous: $48.8M+32.8%
Cash & Equivalents

$526M

Previous: $370M+42.1%
Total Assets

$6.47B

Previous: $5.35B+21.0%
Stock-Based Comp

$1.09M

Previous: $639K+71.0%

Revenue & EPS history

German American · Revenue · Quarterly

$64.8M

Q2 2022+20.4%vs Q2 2021
Beat estimate in 12 of 16 quarters(75%)
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

The Company anticipates continuing to realize the benefits from a rising rate environment as well as the strength of our lending pipelines throughout most of our existing and newly acquired geographic footprint. Although continued fears of inflation and recession may potentially slow future loan growth, we will be prepared to face the headwinds from future economic uncertainties.

Tailwinds

  • Anticipate continuing to realize the benefits from a rising rate environment.
  • Strength of our lending pipelines throughout most of our existing and newly acquired geographic footprint.
  • Improved net interest margins.
  • Solid organic loan originations throughout our entire footprint.
  • Optimizing operating costs by realizing efficiencies following the CUB merger and related systems conversion.

Headwinds

  • Continued fears of inflation may potentially slow future loan growth.
  • Recession may potentially slow future loan growth.
  • Economic uncertainties.
  • Decline in non-interest income in the second quarter of 2022 compared with the first quarter of 2022 by approximately $1 million, or 6%.
  • Housing market refinancings continued to diminish.

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 Q2 2022

Historical avgQ2 2022

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro