JASPER – German American Bancorp, Inc. (Nasdaq: GABC) has announced record-breaking earnings for the third quarter of 2025, driven by successful acquisitions, net interest margin expansion, and strong organic growth across its footprint in Indiana, Kentucky, and Ohio.
The company reported third-quarter net earnings of $35.1 million, or $0.94 per share. This marks the highest level of reported quarterly earnings and per-share earnings in the company’s history.
Key Financial Highlights
The third quarter performance represents a significant jump from previous periods:
- 12% increase in earnings per share compared to the second quarter of 2025 ($0.84 per share).
- 32% increase in earnings per share compared to the third quarter of 2024 ($0.71 per share).
Key financial metrics reinforcing the company’s strength include a 1.68% return on average assets, a 13.0% return on average equity, and a 4.06% net interest margin. Additionally, the company’s efficiency ratio fell from 50% to 49.26%, reflecting increased scale and improved profitability.
“We are extremely pleased to deliver a record earnings performance in the third quarter of 2025 as we positioned the Company with various strategic transactions throughout 2024 and early 2025,” said D. Neil Dauby, German American’s Chairman and CEO. He specifically noted that the Heartland Bank acquisition, which closed in the first quarter of 2025, continues to integrate well and add to the company’s momentum.
Strong Growth in Loans and Deposits
The record operating performance was fueled by expansion across the balance sheet:
- Loan Growth: The overall loan portfolio increased by 3% on an annualized basis from the prior quarter, driven by solid originations across the company’s market. Growth was seen particularly in Agricultural loans (up 10% annualized) and Retail loans (up 7% annualized), which saw strong home equity loan originations.
- Deposit Growth: Total deposits grew 3.4% on an annualized linked-quarter basis, led by a 9% increase in non-interest-bearing demand deposit accounts. Non-interest-bearing accounts remain robust, representing over 28% of total deposits. The total cost of deposits also declined from 1.73% to 1.67%.
Credit quality remained healthy, with non-performing assets totaling only 0.28% of period-end assets and net charge-offs remaining minimal at five basis points.
Non-Interest Income and Dividend
Non-interest income saw a favorable trend, increasing by $1.7 million (10%) over the second quarter of 2025. This was primarily driven by a 3% increase in wealth management and a 6% increase in deposit fees due to new business, along with a non-recurring gain from the redemption of subordinated debt previously issued by Heartland.
In other news, the Board of Directors declared a regular quarterly cash dividend of $0.29 per share, payable on November 20, 2025, to shareholders of record as of November 10, 2025.
Dauby concluded, “We remain excited and committed to the vitality and future growth of our Indiana, Kentucky, and Ohio communities,” expressing confidence that the company’s strong community presence and disciplined approach will continue to drive future profitability and long-term shareholder value.
