NASDAQ$GABC

German American Bancorp Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported a decline in net income and earnings per share compared to the previous quarter and the same quarter last year, primarily due to lower PPP loan fee income and elevated non-recurring expenses.

German American Bancorp reported a decrease in net income for Q4 2021 to $19.3 million, or $0.73 per share, compared to Q4 2020. The decline was attributed to reduced net interest income from lower PPP loan fee income and elevated non-interest expenses related to management initiatives.

  • Net income for Q4 2021 was $19.3 million, or $0.73 per share, down from $20.9 million, or $0.79 per share, in Q4 2020.
  • Net interest income decreased due to lower fee income from PPP loans.
  • Non-interest expense increased due to non-recurring expenses associated with management initiatives.
  • The company's Board approved a new share repurchase plan for up to one million shares and a 10% increase in the quarterly cash dividend.

Headline financials

Total Revenue

$55.7M

Previous: $56.8M-2.0%
EPS (adj)

$0.73

Previous: $0.79-7.6%
Net Interest Margin

3.2%

Previous: 3.7%-13.7%
Efficiency Ratio

54.7%

Previous: 50.6%+8.1%
NPAs to Assets

0.3%

Previous: 0.4%-40.9%
NPLs to Loans

0.5%

Previous: 0.7%-30.0%
Capital Expenditures

$1.89M

Previous: $1.91M-0.9%
Free Cash Flow

$25M

Previous: $34.3M-27.1%
Net Income

$19.3M

Previous: $20.9M-7.7%
Operating Income

$22.4M

No prior period
Cash & Equivalents

$47.2M

Previous: $58M-18.6%
Total Assets

$5.61B

Previous: $4.98B+12.7%
Stock-Based Comp

$383K

Previous: $238K+60.9%

Revenue & EPS history

German American · Revenue · Quarterly

$55.7M

Q4 2021-2%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
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 challenges in 2022 but expects initiatives to mitigate the impact and position the company for a stronger future.

Tailwinds

  • Acquisition of Citizens Union Bancorp of Shelbyville, Kentucky on January 1, 2022, expands presence in the Greater Louisville market.
  • Opening of a loan production office in the Greater Indianapolis area (Greenwood, Indiana) is anticipated in Q1 2022.
  • Optimization and continuous improvement initiatives completed in 2021 will enhance future balance sheet growth and operating performance.
  • The company expects initiatives will mitigate challenges in 2022.
  • German American is expected to be in an even stronger position when the general economy returns to a more normalized environment in the coming years.

Headwinds

  • 2022 is expected to be a very challenging year.
  • Lower market interest rates continue to negatively impact earning asset yields.
  • The Company has also continued to carry excess liquidity on the balance sheet that resulted from significant deposit growth during 2020 and continued in 2021, forgiveness of PPP loans, and somewhat muted loan growth.
  • Decline in net interest income during the fourth quarter of 2021 compared with both the third quarter of 2021 and the fourth quarter of 2020 was primarily attributable to a lower level of fees recognized related to PPP loans in the fourth quarter of 2021.
  • Historically low market interest rates continue to impact the Company's net interest margin.

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 Q4 2021

Historical avgQ4 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

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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