2023 Summary Annual Report
Achieving Our Purpose
We have a long-standing commitment to
providing financial support and stability
in the communities we serve.
Our
Purpose
German American helps individuals,
families and businesses achieve
their financial dreams to improve
their quality of life and place. We
support the communities we serve
and believe that when a community
thrives, its people prosper.
Cautionary Note Regarding Forward-Looking Statements
Statements made in this Summary Annual Report that are not statements of historical fact are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. This includes any statements regarding management’s plans and objectives for future operations
and expectations about the Company’s financial and business performance and economic and market conditions and trends. Such forward-looking
statements may be identified by the use of words such as “anticipate,” “believe,” “estimate,” “expect,” “plan,” “intend,” “should,” “would,” “could,”
“can,” “may,” “will,” “might” and similar expressions. Forward-looking statements are based on management’s current expectations and, by their nature,
are subject to risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements. Factors which may
cause actual results to differ materially from those contained in such forward-looking statements include those identified in Item 1, “Business - Forward
Looking Statements and Associated Risks,” and Item 1A, “Risk Factors,” in our accompanying Annual Report on Form 10-K and in other documents that
we file with or furnish to the Securities and Exchange Commission. These forward-looking statements speak only as of February 27, 2024. We do not
undertake, and expressly disclaim, any duty or obligation to update or revise any forward-looking statements to reflect changes in assumptions, the
occurrence of unanticipated events, or otherwise, except as required by law.
11th
consecutive year
of increased cash
dividends
Improved earnings
performance in
13
of the past 14 years
19th
consecutive fiscal
year of double-digit
return on equity
Purpose
Letter to Our
Shareholders
Dear Shareholders:
2023 was a volatile year for the banking industry, one
marked by challenging economic conditions, continued
rising interest rates, aggressive deposit competition, and
high profile bank failures across our country. German
American has a history of successfully navigating through
such difficult times and remained steadfast in our
commitment to our customers, employees, communities
and shareholders.
Throughout the year, German American remained
financially strong, with solid liquidity, strong capital levels,
and a diverse core deposit base, which continues to speak
to the strength and resilience of our Company.
We were pleased to report record net income for the year,
combined with our 19th consecutive year of double digit
return on equity and 11th consecutive year of increased
dividends to our shareholders.
We have completed a long-planned transition of
the senior leadership team, designed to assure the
Company will be led by an extremely qualified executive
management team for years to come.
We continue to advance and execute on our strategic
plan as we adapt to the ever-changing economic
and banking landscape. We continue to add digital/
technology talent, products and platforms to provide
the best tools for improved high-tech experiences. We
continue to invest in fraud detection, prevention and
continued on page 2...
1
D. Neil Dauby
Chairman and CEO
Letter to Our SHAREHOLDERS
continued...
mitigation tools to protect our stakeholders’ assets and
data. We continue to invest in top talent throughout
our footprint to provide you the best local customer
experience with high-touch advice and service. We
continue to invest and partner with all of our communities
to improve quality of life and place. We work hard every
day in Achieving Our Purpose to be the best we can be
to all our stakeholders.
We are extremely pleased with our operating results
in 2023 and proud to continue our decades-long trend
of exceptional financial performance. Thanks to the
dedicated efforts of our relationship focused team
of professionals, we are confident that our strong
community presence, healthy financial condition and
disciplined approach to risk management and earnings
growth will continue to drive future profitability while
enhancing the future vitality and growth of our Indiana
and Kentucky communities.
Thank you for your continued investment in German
American.
Sincerely,
D. Neil Dauby
Chairman and CEO
GABC Management Succession
Keith A. Leinenbach
Effective April 1, 2024, in conjunction with our Company’s executive management succession
plan, W. Scott Powell will assume the position of Executive Vice President and Chief Credit Officer,
succeeding Keith A. Leinenbach, who will retire from the Company on April 30, 2024.
Keith will retire after 24 years with the organization. He served 11 of those years as a Regional
Commercial Credit Officer and a Commercial Banking Officer before being named Executive Vice
President and Chief Credit Officer of the Company in January of 2012.
Scott joined German American Bank through the acquisition of First Security Bank in 2018,
where he served as Chief Credit Officer. He has vast credit administration experience with nearly
30 years of commercial risk and banking experience with community and large national banks.
Scott currently serves as Regional Executive Vice President, Commercial Credit Officer with the
Company. Scott holds a bachelor degree from McKendree College and his MBA from University of
Southern Indiana.
“We wish Keith the best in his well-deserved retirement years. He has played a critical role in
strengthening and maintaining our high standards in credit quality. He has been instrumental
in driving our Company to superior financial performance through both organic growth and
acquisitions,” states Neil Dauby, Chairman and Chief Executive Officer. “We are also excited to
expand Scott’s leadership role within our organization as part of the executive management
succession plan. He consistently demonstrates the qualities that define German American’s
culture with an unwavering commitment to maintaining credit quality combined with our
commitment to our customers, employees, shareholders and communities.”
W. Scott Powell
2
Our Values
Integrity
We trust each other in words and actions. We value honesty, transparency, and diverse
perspectives for high ethical standards in all we do.
Relationships
We develop relationships based on integrity, trust and mutual respect to create positive
outcomes and experiences for all.
Excellence
Because performance is vital, we are encouraged to take initiative, accept challenges,
and be collaborative to achieve performance and operating excellence for our customers,
shareholders, and communities.
Service
Service to our communities, customers, and each other is fun, rewarding and powerful.
We develop valuable relationships by providing outstanding service to all.
Inclusion
We are committed to an inclusive workplace where diverse representation, perspectives
and experiences foster an atmosphere of empowerment, collaboration and respect.
Notable Awards
Listed as a top community bank in Indiana and Kentucky
with 5-star ratings in both state rankings.
Earned the 5-Star Superior rating for the
34th consecutive quarter.
3
Michigan
The Strength of
Together
INDIANA
INDIANA
Greenwood
Greenwood
Greensburg
Greensburg
Columbus
Columbus
North Vernon
North Vernon
Seymour
Seymour
Bloomington
Bloomington
CINCINNATI,
OHIO
Odon/Cannelburg
Odon/Cannelburg
Bedford
Bedford
Vincennes
Vincennes
Loogootee
Loogootee
Washington
Washington
Petersburg
Petersburg
Dubois
Dubois
Princeton
Princeton
Ireland
Ireland
Oakland
Oakland
City
City
Holland
Holland
Jasper
Jasper
Huntingburg
Huntingburg
Ferdinand
Ferdinand
Evansville
Evansville
Newburgh
Newburgh
Henderson
Henderson
Rockport
Rockport
Owensboro
Owensboro
Madison
Madison
Warsaw
Warsaw
Hanover
Hanover
Sellersburg
Sellersburg
LaGrange
LaGrange
Owenton
Owenton
Jeffersonville
Jeffersonville
Simpsonville
Simpsonville
New
New
Albany
Albany
Louisville
Louisville
Shelbyville
Shelbyville
Taylorsville
Taylorsville
Tell City
Tell City
Mt. Washington
Mt. Washington
KENTUCKY
KENTUCKY
Elizabethtown
Elizabethtown
Munfordville
Munfordville
Horse Cave
Horse Cave
Bowling Green
Bowling Green
Glasgow
Glasgow
Franklin
Franklin
NASHVILLE,
TENNESSEE
4
5
Standing the
Test of Time
Achieving Our Purpose year after year is our steadfast
commitment to our customers, communities, employees and
shareholders. Since 1910, individuals, families and businesses
have trusted German American Bank to manage and save their
hard-earned money; purchase, build and remodel homes; open
and grow businesses and farm operations; retire comfortably;
and build wealth and pass it to future generations.
Throughout our 114 years of operation, our strong model
of community banking has played vital roles in addressing
community needs and providing funding efforts to improve the
quality of life in the communities we serve. Our local leaders are
deeply involved in the communities where we live, work and do
business. We’re focused on building long-lasting relationships
which is consistent with Our Values of integrity, relationships,
excellence, service and inclusion. Maintaining quality service,
high ethical standards, and a safe, financially sound Company are
fundamental, tried-and-true business practices we focus on daily.
Even with continuing advancements in technology, we believe
people want to do business with people. Our team prides itself
on being available when our customers need us in the office, by
phone, email or live chat. We strive to consistently surpass what
is expected from us as not only a community bank, yet also from
each other as friends, neighbors, community leaders, colleagues
and financial professionals.
Achieving Our Purpose based on Our Values helps us set higher
standards in banking.
6
Test of Time
Providing a positive
work experience
900+
employees
Volunteer hours
served in local
communities in 2023
5,300+
hours
Helping
individuals, families
and businesses achieve
their financial dreams to
improve their quality of
life and place
achieve
goals
people
focused
Maintaining a culture
characterized by people
who work together to
drive success
$237+
million
Invested in community
support in 2023
to help urban and rural
communities throughout
Indiana and Kentucky thrive
so their people can prosper
$406,000+
to local schools
Donated to
local schools
participating in our
School Spirit Card
program
(2016 – 2023)
7
Report of Independent Registered Public
Accounting Firm
Shareholders and the Board of Directors
German American Bancorp, Inc.
Jasper, Indiana
We have audited in accordance with the standards of the Public Company Accounting
Oversight Board (United States) the consolidated balance sheets of German American
Bancorp, Inc. as of December 31, 2023 and 2022, and the related consolidated
statements of income, comprehensive income (loss), changes in shareholders’ equity,
and cash flows for each of the three years in the period ended December 31, 2023,
appearing in the Annual Report on Form 10-K, not appearing herein. In our report dated
February 27, 2024, also appearing in the Annual Report on Form 10-K, we expressed an
unqualified opinion on those consolidated financial statements.
In our opinion, the information set forth in the consolidated balance sheets and
consolidated statements of income presented on pages 10 and 11 is fairly stated, in all
material respects, in relation to the consolidated financial statements from which they
have been derived.
Crowe LLP
Louisville, Kentucky
February 27, 2024
8
Five Year Summary
The following selected data should be read in conjunction
with the Company’s Annual Report on Form 10-K for 2023.
Dollars in thousands, except share and per share data
Summary of Operations:
Interest Income
Interest Expense
Net Interest Income
Provision for Credit Losses
Net Interest Income after Provision for Credit Losses
Non-interest Income
Non-interest Expense
Income before Income Taxes
Income Tax Expense
Net Income
Year-end Balances:
Total Assets
2023
2022
2021
2020
2019
$ 256,656
$ 218,926
$ 170,379
$ 174,369
$ 176,474
66,223
190,433
2,550
187,883
60,261
144,497
103,647
17,759
18,342
200,584
6,350
194,234
59,133
154,191
99,176
17,351
9,549
160,830
( 6,500 )
167,330
59,462
124,007
102,785
18,648
19,126
155,243
17,550
137,693
54,474
117,123
75,044
12,834
31,249
145,225
5,325
139,900
45,501
114,162
71,239
12,017
$
85,888
$
81,825
$
84,137
$
62,210
$
59,222
$ 6,152,198
$ 6,155,991
$ 5,608,539
$ 4,977,577
$ 4,397,672
Total Loans, Net of Unearned Income
3,971,082
3,784,934
3,004,264
3,088,072
3,077,091
Total Deposits
Total Long-term Debt
Total Shareholders’ Equity
Average Balances:
Total Assets
5,252,963
5,350,051
4,744,316
4,106,530
3,430,021
127,969
663,558
102,645
558,393
83,855
668,459
141,624
624,709
181,950
573,820
$ 6,037,874
$ 6,514,030
$ 5,369,707
$ 4,729,006
$ 4,128,535
Total Loans, Net of Unearned Income
3,835,157
3,680,708
3,072,302
3,185,542
2,899,939
Total Deposits
Total Shareholders’ Equity
Per Share Data:
Net Income
Cash Dividends
Book Value at Year-end
Tangible Book Value Per Share(1)
Other Data at Year-end:
Number of Shareholders
Number of Employees (Full-time Equivalent)
5,196,475
5,700,499
4,493,853
3,860,397
3,293,934
584,106
610,066
642,934
594,781
519,010
$
$
$
2.91
1.00
22.43
16.12
3,065
838
2.78
0.92
18.93
12.50
3,163
854
3.17
0.84
25.17
20.37
3,109
724
$
2.34
$
0.76
23.57
18.63
3,218
776
2.29
0.68
21.51
16.49
3,672
821
Weighted Average Number of Shares
29,557,567
29,464,591
26,537,311
26,539,024
25,824,538
Selected Performance Ratios:
Return on Assets
Return on Equity
Equity to Assets
Dividend Payout
Net Charge-offs (Recoveries) to Average Loans
Allowance for Credit Losses to Loans
Net Interest Margin
1.42 %
14.70 %
10.79 %
34.27 %
0.08 %
1.10 %
3.58 %
1.26 %
13.41 %
9.07 %
33.02 %
0.06 %
1.17 %
3.45 %
1.57 %
13.09 %
11.92 %
26.41 %
0.11 %
1.23 %
3.31 %
1.32 %
10.46 %
12.55 %
32.37 %
0.08 %
1.52 %
3.63 %
1.43 %
11.41 %
13.05 %
29.64 %
0.17 %
0.53 %
3.92 %
9
(1) Tangible Book Value per Share is defined as Total Shareholders’ Equity less Goodwill
and Other Intangible Assets divided by End of Period Shares Outstanding.
Consolidated Balance Sheets
Dollars in thousands, except share and per share data
Assets
Cash and Due from Banks
Federal Funds Sold and Other Short-term Investments
Cash and Cash Equivalents
Interest-bearing Time Deposits with Banks
Securities Available-for-Sale, at Fair Value (Amortized Cost $1,871,260 for December 31, 2023;
Amortized Cost $2,094,826 for December 31, 2022; No Allowance for Credit Losses)
Other Investments
Loans Held-for-Sale, at Fair Value
Loans
Less:
Unearned Income
Allowance for Credit Losses
Loans, Net
Stock in FHLB of Indianapolis and Other Restricted Stock, at Cost
Premises, Furniture and Equipment, Net
Other Real Estate
Goodwill
Intangible Assets
Company Owned Life Insurance
Accrued Interest Receivable and Other Assets
TOTAL ASSETS
Liabilities
Non-interest-bearing Demand Deposits
Interest-bearing Demand, Savings, and Money Market Accounts
Time Deposits
Total Deposits
FHLB Advances and Other Borrowings
Accrued Interest Payable and Other Liabilities
TOTAL LIABILITIES
Shareholders’ Equity
Common Stock, no par value, $1 stated value; 45,000,000 shares authorized
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
TOTAL SHAREHOLDERS’ EQUITY
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
End of period shares issued and outstanding
December 31,
2023
2022
$
78,805
36,525
115,330
$
75,476
41,905
117,381
500
500
1,596,832
1,761,669
353
5,226
3,977,900
(6,818 )
(43,765 )
3,927,317
14,687
106,776
-
180,357
6,307
85,840
112,673
353
8,600
3,788,645
(3,711 )
(44,168 )
3,740,766
15,037
112,237
-
180,357
9,426
83,998
125,667
$
6,152,198
$
6,155,991
$
1,493,160
$
1,691,804
2,992,761
767,042
3,229,778
428,469
5,252,963
5,350,051
193,937
41,740
203,806
43,741
5,488,640
5,597,598
29,585
389,411
29,493
387,171
461,622
405,167
(217,060 )
(263,438 )
663,558
558,393
$
6,152,198
$
6,155,991
29,584,709
29,493,193
See Annual Report on Form 10-K.
10
Consolidated Statements of Income
Dollars in thousands, except per share data
Interest Income
Interest and Fees on Loans
Interest on Federal Funds Sold and Other Short-term Investments
Interest and Dividends on Securities:
Taxable
Non-taxable
$
TOTAL INTEREST INCOME
Interest Expense
Interest on Deposits
Interest on FHLB Advances and Other Borrowings
TOTAL INTEREST EXPENSE
NET INTEREST INCOME
Provision for Credit Losses
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
Non-Interest Income
Wealth Management Fees
Service Charges on Deposit Accounts
Insurance Revenues
Company Owned Life Insurance
Interchange Fee Income
Other Operating Income
Net Gains on Sales of Loans
Net Gains on Securities
TOTAL NON-INTEREST INCOME
Non-Interest Expense
Salaries and Employee Benefits
Occupancy Expense
Furniture and Equipment Expense
FDIC Premiums
Data Processing Fees
Professional Fees
Advertising and Promotion
Intangible Amortization
Other Operating Expenses
TOTAL NON-INTEREST EXPENSE
Income before Income Taxes
Income Tax Expense
Net Income
Basic Earnings per Share
Diluted Earnings per Share
$
$
$
2023
Years Ended December 31,
2022
2021
212,517
1,677
20,614
21,848
256,656
56,916
9,307
66,223
190,433
2,550
187,883
11,711
11,538
9,596
1,731
17,452
5,830
2,363
40
60,261
83,244
10,887
3,580
2,829
11,112
5,575
4,857
2,840
19,573
144,497
103,647
17,759
85,888
2.91
2.91
$
169,158
5,765
$
20,453
23,550
218,926
13,514
4,828
18,342
200,584
6,350
194,234
10,076
11,457
10,020
2,264
15,820
5,116
3,818
562
59,133
84,145
11,223
3,698
1,860
15,406
6,295
4,416
3,711
23,437
154,191
99,176
17,351
81,825
2.78
2.78
$
$
$
$
$
$
139,151
488
12,962
17,778
170,379
4,955
4,594
9,549
160,830
( 6,500 )
167,330
10,321
7,723
9,268
1,529
13,116
6,991
8,267
2,247
59,462
68,570
11,081
3,750
1,419
7,611
5,009
4,197
2,731
19,639
124,007
102,785
18,648
84,137
3.17
3.17
11
See Annual Report on Form 10-K.
Directors
12
Board of
Directors
Zachary W. Bawel
Angela Curry
D. Neil Dauby
Sue J. Ellspermann
Marc D. Fine
Jason M. Kelly
Diane B. Medley
M. Darren Root
Christina M. Ryan
Thomas W. Seger
Jack W. Sheidler
Tyson J. Wagler
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