German American Bancorp (GABC) investor relations material

Executive summary

• Record Q3 2026 net income of $38.6 million and diluted EPS of $1.03; both were the highest quarterly levels reported.

• Performance reflected expanding net interest margin, loan growth and controlled expenses; ROAA was 1.83%.

Financial highlights

• Net income rose 1% QoQ to $38.6 million and 10% YoY from $35.1 million; diluted EPS increased to $1.03 from $1.02 QoQ and $0.94 YoY.

• Net interest income was $83.5 million, up $2.3 million, or 3%, QoQ and $7.8 million, or 10%, YoY.

• Non-interest income was $18.7 million, down less than 1% QoQ and up 1.5% YoY; Q3 2025 included a $975,000 debt-extinguishment gain.

• Non-interest expense increased 5% QoQ to $53.1 million and 7% YoY, driven by compensation, health insurance, seasonal repairs, donations and sponsorship timing.

Outlook and guidance

• Management cited a strong, diversified loan pipeline heading into Q4 2026; growth will depend on attracting reasonably priced deposits amid heightened competition.

• A new strategic plan for 2027 and beyond emphasizes customer products, employee experience, community support and shareholder returns, alongside adaptation to AI, digital payments, fraud and cybersecurity.