German American Bancorp Inc (GABC) Reports Q3 2023 Earnings of $21.5 Million
German American Bancorp Inc (NASDAQ:GABC) reported Q3 2023 earnings of $21.5 million, a decrease of $0.7 million from Q2 2023.
Despite the decrease, GABC remains well-positioned with solid liquidity and strong capital.
The company's Q3 2023 operating performance was highlighted by solid loan growth and stable/diversified deposit base.
Board of Directors declared a regular quarterly cash dividend of $0.25 per share, a 9% increase over the rate in effect during 2022.
German American Bancorp Inc (NASDAQ:GABC) released its Q3 2023 earnings report on October 31, 2023. The company reported solid earnings of $21.5 million, or $0.73 per share, reflecting a linked quarter decrease of $0.7 million, or approximately 3% on a per share basis, from Q2 2023 earnings of $22.1 million or $0.75 per share. Despite the decrease, GABC remained well-positioned at the end of Q3 2023 with continued solid liquidity and strong capital.
Financial Highlights
The company's Q3 2023 operating performance was highlighted by marginal net interest margin compression, solid loan growth, a stable/diversified deposit base, continued strong credit metrics, reductions in non-interest expense, and stable/diversified non-interest income. The net interest margin declined marginally from 3.63% to 3.57%, or 6 basis points, during Q3 2023 on a linked quarter basis.
During Q3 2023, total loans increased $63.1 million or 7% on an annualized basis with most categories of loans showing growth. The companys loan portfolio composition remained diverse with a low commercial real estate office concentration. Credit metrics remained strong as non-performing assets were 0.21% of period-end assets and non-performing loans totaled 0.32% of period-end loans.
Dividend Announcement
The company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.25 per share, which will be payable on November 20, 2023, to shareholders of record as of November 10, 2023. As previously reported, this dividend rate represents a 9% increase over the rate in effect during 2022.
CEO Commentary
D. Neil Dauby, German Americans Chairman & CEO stated, We are extremely pleased to deliver yet another solid quarterly operating performance. German American remains extremely well-positioned with solid liquidity, strong capital and a diverse core deposit base which continues to speak to the strength and resilience of our Company. 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. We remain excited and committed to the vitality and growth of our Indiana and Kentucky communities.
Balance Sheet Highlights
Total assets for the company totaled $6.006 billion at September 30, 2023, representing a decline of $47.6 million compared with June 30, 2023, and a decline of $254.2 million compared with September 30, 2022. The decline in total assets at September 30, 2023, compared with June 30, 2023, was primarily related to a decline in the market value of the securities portfolio partially offset by an increase in total loans.
Despite the challenges, German American Bancorp Inc (NASDAQ:GABC) continues to demonstrate resilience and remains well-positioned for future growth.
Explore the complete 8-K earnings release (here) from German American Bancorp Inc for further details.
This article first appeared on GuruFocus.
