Driving Results.
Creating Possibilities.
Annual Report
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 March 3, 2025. 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.
Our
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.
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.
Our
Purpose
Values
consecutive year
of increased cash
dividends
13th
consecutive fiscal
year of double-digit
return on equity
20th
1
Dear Shareholders:
2024 was a transformative year for German American as
we continued our history of strong financial performance
and positioned our company for future continued growth.
We delivered our 20th consecutive year of double-digit
return on equity and 13th year of increased cash
dividends. We remain financially strong with solid liquidity
and strong capital.
To evolve and better position our company for future
success, our 2024 operating performance was highlighted
by the sale of the Company’s existing insurance division,
the partial restructuring of our securities portfolio and the
announced acquisition of Columbus, Ohio, based Heartland
BancCorp, bringing our total assets to approximately $8.2
billion at merger close on February 1, 2025. All should
provide momentum for solid balance sheet and earnings
per share growth into 2025 and allow us to continue on
our path of Driving Results and Creating Possibilities.
The strategic partnership with Heartland will bring
together two high-performing, community-oriented
organizations and expand German American’s footprint
into Columbus and Cincinnati, Ohio, two of the fastest
growing and most vibrant markets in the Midwest.
The acquisition is strategically compelling and financially
attractive to drive long-term shareholder value.
We believe we have the right balance of serving rural,
suburban and urban communities across our footprint.
...continued
Letter to Our SHAREHOLDERS
D. Neil Dauby
CHAIRMAN AND CEO
History of
improved
earnings
performance
Letter to Our SHAREHOLDERS
continued...
It is always an honor to be recognized and receive
national accolades for our outstanding financial
performance. In 2024, we were named to the S&P Global
Top Performing Community Bank list, Bank Director Top
Banks list, Piper Sandler’s Small Cap All-Stars, Raymond
James Community Banker’s Cup, Forbes America’s Best
Banks list and Newsweek’s Best Regional Bank list.
And most recently, the Company was ranked 2nd in the
Nation on the prestigious Forbes America’s Best Banks
list for 2025. We believe this acknowledges our strong
financial focus and stability, as well as our unwavering
commitment to excellence for our employees, customers,
communities and shareholders.
We are extremely excited about the long-term growth
potential in connection with a normalizing yield
curve, a strong organic growth footprint and the
Company’s merger with Heartland BancCorp. We remain
enthusiastic and are committed to the vitality and future
growth of our Indiana, Kentucky and Ohio communities.
Thank you for your continued investment in
German American.
Sincerely,
D. Neil Dauby
Chairman and CEO
2
#2
Ranked
in the Nation
Bradley C. Arnett
Executive Vice President,
Chief Legal Officer
Clay M. Barrett
Executive Vice President,
Chief Digital and
Information Officer
Michael F. Beckwith
Executive Vice President,
Chief Banking Officer
D. Neil Dauby
Bradley M. Rust
Amy D. Jackson
W. Scott Powell
Our EXECUTIVE TEAM
History of SUPERIOR FINANCIAL PERFORMANCE
Chairman and
Chief Executive
Officer
President and
Chief Financial
Officer
Executive Vice President,
Chief Administrative
Officer
Executive Vice President,
Chief Credit Officer
3
Raymond James
Community
Bankers Cup
Award
Forbes
America’s Best
Banks*
#2 in the
Nation
S&P Global
Top Performing
Bank in the
Nation
Top 20 & Top 30
BauerFinancial
5-Star Rating
Newsweek
Best Banks in
America
Piper Sandler
Small Cap
All-Star
*©2025 Forbes. All rights reserved. Used under license.
Bank Director
Magazine
Top Banks
Top 50
INDIANA
KENTUCKY
Michigan
INDIANA
KENTUCKY
NASHVILLE,
TENNESSEE
Louisville
Franklin
Greenwood
Bowling Green
Owensboro
Glasgow
Horse Cave
Munfordville
Henderson
Shelbyville
Simpsonville
Taylorsville
Mt. Washington
LaGrange
Owenton
Elizabethtown
Warsaw
Vincennes
Odon/Cannelburg
Washington
Loogootee
Bedford
Bloomington
Princeton
Oakland
City
Petersburg
Ireland
Jasper
Huntingburg
Dubois
Holland
Ferdinand
Evansville
Newburgh
Rockport
Tell City
Seymour
North Vernon
Columbus
Greensburg
Madison
Hanover
Sellersburg
New
Albany
Jeffersonville
Louisville
Franklin
Greenwood
Bowling Green
Owensboro
Glasgow
Horse Cave
Munfordville
Henderson
Shelbyville
Simpsonville
Taylorsville
Mt. Washington
LaGrange
Owenton
Elizabethtown
Warsaw
Vincennes
Odon/Cannelburg
Washington
Loogootee
Bedford
Bloomington
Princeton
Oakland
City
Petersburg
Ireland
Jasper
Huntingburg
Dubois
Holland
Ferdinand
Evansville
Newburgh
Rockport
Tell City
Seymour
North Vernon
Columbus
Greensburg
Madison
Hanover
Sellersburg
New
Albany
Jeffersonville
Florence
Ft. Mitchell
Ft. Thomas
Cincinnati
Ft. Mitchell
Ft. Thomas
Florence
Cincinnati
German American Bank was founded
in an Ohio Valley community rich in
German-American heritage, Jasper,
Indiana. Over our 115 year history, the
bank has grown to become one of the
strongest community banks in the
Midwest serving Indiana, Kentucky
and Ohio and is highly regarded as a
premier financial services company
with an exceptional community banking
model. We follow the same values of
our original founders including trust,
integrity, lasting relationships, high
performance standards and being
community focused to help communities
thrive so its people can prosper.
Our history of strong financial
performance is a reflection of the
success of our unique business model.
4
Driving
RESULTS...
OHIO
OHIO
Newark
Johnstown
Pickerington
Dublin Westerville
Hilliard
Reynoldsburg
Whitehall
Gahanna
Upper Arlington Columbus
Delaware
Grove
City
Newark
Johnstown
Pickerington
Dublin Westerville
Hilliard
Reynoldsburg
Whitehall
Gahanna
Upper Arlington Columbus
Delaware
Grove
City
5
Creating
POSSIBILITIES...
Driving results creates possibilities for
our employees, clients, communities and
shareholders. It affords us the opportunities
to invest in client experience measurements
and top talented financial professionals.
It allows us to grow our brand into new,
vibrant markets to help clients bring
financial goals to life, elevate a business
plan, move into a first home or a dream
home and manage money on the go, in
the office or on the phone. It gives us the
ability to influence the health of our local
communities in key areas of economic
development, education and overall quality
of life. We are committed to always being
mindful of the purpose of our organization.
As a team, we understand that driving
results creates possibilities.
6
Providing a positive
work experience
1,000+
employees
Maintaining a culture
characterized by people
who work together to
drive success
people
focused
Volunteer hours
served in local
communities in 2024
6,000+
hours
Invested in community
support in 2024 to help
rural, suburban and urban
communities throughout
Indiana and Kentucky thrive
so their people can prosper
Donated to local
schools participating
in our School Spirit
Card program since
the program’s
inception
$540,000
to local schools
$215+
million
Helping
individuals, families
and businesses achieve
their financial dreams to
improve their quality of
life and place
creating
possibilities
7
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, 2024 and 2023, 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, 2024,
appearing in the Annual Report on Form 10-K, not appearing herein. In our report dated
March 3, 2025, 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.
Indianapolis, Indiana
March 3, 2025
8
Report of Independent Registered Public
ACCOUNTING FIRM
/s/ Crowe LLP
Crowe LLP
The following selected data should be read in conjunction
with the Company’s Annual Report on Form 10-K for 2024.
2024
2023
2022
2021
2020
Summary of Operations:
Interest Income
$
291,043
$
256,656
$
218,926
$
170,379
$
174,369
Interest Expense
100,452
66,223
18,342
9,549
19,126
Net Interest Income
190,591
190,433
200,584
160,830
155,243
Provision for Credit Losses
2,775
2,550
6,350
( 6,500 )
17,550
Net Interest Income after Provision for Credit Losses
187,816
187,883
194,234
167,330
137,693
Non-interest Income
62,660
60,261
59,133
59,462
54,474
Non-interest Expense
146,377
144,497
154,191
124,007
117,123
Income before Income Taxes
104,099
103,647
99,176
102,785
75,044
Income Tax Expense
20,288
17,759
17,351
18,648
12,834
Net Income
$
83,811
$
85,888
$
81,825
$
84,137
$
62,210
Year-end Balances:
Total Assets
$ 6,295,910
$ 6,152,198
$ 6,155,991
$ 5,608,539
$ 4,977,577
Total Loans, Net of Unearned Income
4,124,902
3,971,082
3,784,934
3,004,264
3,088,072
Total Deposits
5,329,075
5,252,963
5,350,051
4,744,316
4,106,530
Total Long-term Debt
153,269
127,969
102,645
83,855
141,624
Total Shareholders’ Equity
715,067
663,558
558,393
668,459
624,709
Average Balances:
Total Assets
$ 6,233,753
$ 6,037,874
$ 6,514,030
$ 5,369,707
$ 4,729,006
Total Loans, Net of Unearned Income
4,035,670
3,835,157
3,680,708
3,072,302
3,185,542
Total Deposits
5,304,914
5,196,475
5,700,499
4,493,853
3,860,397
Total Shareholders’ Equity
685,862
584,106
610,066
642,934
594,781
Per Share Data:
Net Income
$
2.83
$
2.91
$
2.78
$
3.17
$
2.34
Cash Dividends
1.08
1.00
0.92
0.84
0.76
Book Value at Year-end
24.09
22.43
18.93
25.17
23.57
Tangible Book Value Per Share(1)
17.93
16.12
12.50
20.37
18.63
Other Data at Year-end:
Number of Shareholders
3,036
3,065
3,163
3,109
3,218
Number of Employees (Full-time Equivalent)
760
838
854
724
776
Weighted Average Number of Shares
29,656,416
29,557,567
29,464,591
26,537,311
26,539,024
Selected Performance Ratios:
Return on Assets
1.34 %
1.42 %
1.26 %
1.57 %
1.32 %
Return on Equity
12.22 %
14.70 %
13.41 %
13.09 %
10.46 %
Equity to Assets
11.36 %
10.79 %
9.07 %
11.92 %
12.55 %
Dividend Payout
38.00 %
34.27 %
33.02 %
26.41 %
32.37 %
Net Charge-offs (Recoveries) to Average Loans
0.05 %
0.08 %
0.06 %
0.11 %
0.08 %
Allowance for Credit Losses to Loans
1.08 %
1.10 %
1.17 %
1.23 %
1.52 %
Net Interest Margin
3.43 %
3.58 %
3.45 %
3.31 %
3.63 %
(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.
Five Year Summary
Dollars in thousands, except share and per share data
9
Consolidated Balance Sheets
See Annual Report on Form 10-K.
Dollars in thousands, except share and per share data
December 31,
2024
2023
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 $1,796,040 for December 31, 2024;
Amortized Cost $1,871,260 for December 31, 2023; 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
$
78,805
36,525
115,330
500
1,596,832
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
$
6,152,198
$
1,493,160
2,992,761
767,042
5,252,963
193,937
41,740
5,488,640
29,585
389,411
461,622
(217,060 )
663,558
$
6,152,198
29,584,709
$
69,249
119,543
188,792
500
1,517,287
353
8,239
4,133,267
(8,365 )
(44,436 )
4,080,466
14,423
104,045
-
179,025
4,018
86,710
112,052
$
6,295,910
$
1,399,270
3,013,204
916,601
5,329,075
210,131
41,637
5,580,843
29,677
392,266
513,588
(220,464 )
715,067
$
6,295,910
29,677,093
10
Consolidated Statements of Income
Years Ended December 31,
2024
2023
2022
Interest Income
Interest and Fees on Loans
$
240,241
$
212,517
$
169,158
Interest on Federal Funds Sold and Other Short-term Investments
7,697
1,677
5,765
Interest and Dividends on Securities:
Taxable
26,586
20,614
20,453
Non-taxable
16,519
21,848
23,550
TOTAL INTEREST INCOME
291,043
256,656
218,926
Interest Expense
Interest on Deposits
90,622
56,916
13,514
Interest on FHLB Advances and Other Borrowings
9,830
9,307
4,828
TOTAL INTEREST EXPENSE
100,452
66,223
18,342
NET INTEREST INCOME
190,591
190,433
200,584
Provision for Credit Losses
2,775
2,550
6,350
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES
187,816
187,883
194,234
Non-Interest Income
Wealth Management Fees
14,416
11,711
10,076
Service Charges on Deposit Accounts
12,669
11,538
11,457
Insurance Revenues
4,384
9,596
10,020
Company Owned Life Insurance
2,058
1,731
2,264
Interchange Fee Income
17,125
17,452
15,820
Sale of Assets of German American Insurance
38,323
-
-
Other Operating Income
5,419
5,830
5,116
Net Gains on Sales of Loans
3,054
2,363
3,818
Net Gains (Losses) on Securities
(34,788 )
40
562
TOTAL NON-INTEREST INCOME
62,660
60,261
59,133
Non-Interest Expense
Salaries and Employee Benefits
82,257
83,244
84,145
Occupancy, Furniture and Equipment Expense
14,944
14,467
14,921
FDIC Premiums
2,908
2,829
1,860
Data Processing Fees
12,243
11,112
15,406
Professional Fees
8,147
5,575
6,295
Advertising and Promotion
3,939
4,857
4,416
Intangible Amortization
2,032
2,840
3,711
Other Operating Expenses
19,907
19,573
23,437
TOTAL NON-INTEREST EXPENSE
146,377
144,497
154,191
Income before Income Taxes
104,099
103,647
99,176
Income Tax Expense
20,288
17,759
17,351
Net Income
$
83,811
$
85,888
$
81,825
Basic Earnings per Share
$
2.83
$
2.91
$
2.78
Diluted Earnings per Share
$
2.83
$
2.91
$
2.78
Dollars in thousands, except per share data
See Annual Report on Form 10-K.
11
12
Diane B. Medley
Jack W. Sheidler
Ronnie R. Stokes
M. Darren Root
G. Scott McComb
Zachary W. Bawel
Angela Curry
D. Neil Dauby
Sue J. Ellspermann
Jason M. Kelly
Christina M. Ryan
Marc D. Fine
Our BOARD OF DIRECTORS
13
Tyson J. Wagler
004CTN3DE5