NASDAQ$GABC

German American Bancorp Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported strong operating performance with increased earnings per share.

German American Bancorp reported a strong third quarter with earnings of $24.6 million, resulting in earnings per share of $0.83. The company's performance was driven by net interest margin expansion, solid credit metrics, and disciplined operating expense management. Total loans increased by $33.6 million, while non-interest income declined due to wealth management fees and mortgage revenues.

  • Earnings per share increased by approximately 2.5% compared to the second quarter of 2022.
  • Net interest income increased by $2.1 million, driven by an improved net interest margin and solid loan growth.
  • Non-interest expenses declined by approximately $1.0 million due to focus on controlling expenses and increasing efficiency.
  • Total assets decreased by $211.8 million compared to June 30, 2022, primarily due to a decline in deposits and market value of available-for-sale securities.

Headline financials

Total Revenue

$65.8M

Previous: $56.8M+15.7%
EPS (adj)

$0.83

Previous: $0.81+2.5%
Net Interest Margin

3.6%

Previous: 3.3%+7.8%
Efficiency Ratio

51.4%

Previous: 55.8%-7.9%
Capital Expenditures

-$6.29M

Previous: -$2.79M-125.1%
Free Cash Flow

$18.3M

Previous: $18.7M-2.1%
Net Income

$24.6M

Previous: $21.5M+14.5%
Operating Income

$51.8M

Previous: $46M+12.5%
Gross Profit

$65.8M

Previous: $54.8M+20.0%
Cash & Equivalents

$373M

Previous: $449M-16.9%
Total Assets

$6.26B

Previous: $5.48B+14.3%
Stock-Based Comp

$398K

Previous: $373K+6.7%

Revenue & EPS history

German American · Revenue · Quarterly

$65.8M

Q3 2022+15.7%vs Q3 2021
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

The company remains cautiously optimistic about continued improvements in net interest margin and the strength of its lending pipeline. However, they are preparing to face headwinds from potential economic uncertainties.

Tailwinds

  • Continued improvements in net interest margin.
  • Strength of the lending pipeline for continued growth.
  • Geographic diversity in footprint allowing opportunity for organic growth.
  • Acquisition of Citizen Union Bank contributed positively to strong third quarter earnings.
  • Focus on controlling expenses and increasing efficiency.

Headwinds

  • Fears of inflation and recession may potentially slow future growth and stress credit.
  • Decline in deposits and market value of available-for-sale securities.
  • Decline in non-interest income due to wealth management fees and mortgage revenues.
  • Commercial line utilization remains suppressed.
  • The housing market continues to contract in this high interest rate environment.

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 Q3 2022

Historical avgQ3 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%

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