JASPER — German American Bancorp, Inc. (Nasdaq: GABC) reported strong quarterly earnings of $31.4 million, or $0.84 per share, resulting in the second-highest level of reported earnings per share in the Company’s history.
This level of quarterly earnings represented an increase of $20.9 million, or approximately 180% on a per share basis, from the 2025 first quarter earnings of $10.5 million, or $0.30 per share. The first quarter of 2025 was impacted by one-time merger and acquisition costs of $5.9 million and a “Day 2” provision under the current expected credit loss (“CECL”) model of $16.2 million (total impact of $16.8 million on an after-tax basis) resulting from the February 1, 2025 merger with Heartland BancCorp (“Heartland”), the parent company of Heartland Bank. On an adjusted basis, net income for the first quarter 2025 was $27.3 million, or $0.79 per share.1
The second quarter 2025 earnings performance was driven by continued core net interest margin expansion, substantial gains in net interest income and operating leverage, solid organic loan growth, continued high level of non-interest-bearing demand deposits, healthy credit metrics, and ongoing improved efficiencies resulting from the Heartland merger. Second quarter 2025 earnings also had the benefit of three months of Heartland operations, while first quarter 2025 earnings included only two months.
The overall loan portfolio at June 30, 2025, remains stable and diversified. Loan growth reflected approximately 7% organic growth on an annualized linked-quarter basis. The growth was broad-based across all lending categories, industry segments, and geographic regions. The Company’s loan portfolio reflects healthy credit metrics, as non-performing assets were 0.30% of period-end assets and non-performing loans totaled 0.44% of period-end loans. Net charge-offs remained minimal at six basis points of average loans for the second quarter of 2025.
Total deposits declined in the second quarter over the linked first quarter as the Company leveraged its strong liquidity position to reduce the higher cost Heartland deposits post-acquisition. Non-interest bearing demand deposit accounts continued to remain strong representing over 27% of total deposits at June 30, 2025.
