German American Bancorp (GABC) investor relations material

Executive summary

• Net income for Q1 2026 was $33.2 million ($0.88 per share), down 7% sequentially but up 193% year-over-year due to prior year merger expenses.

• Return on average assets was 1.58% and return on average tangible common equity was 17.08% for Q1 2026.

• Net interest margin reached 4.26%, up 13 bps from Q4 2025, driven by lower funding costs.

• Efficiency ratio was 51.2%, reflecting strong cost control despite seasonal expense increases.

• 7% dividend increase announced, marking 14 consecutive years of dividend growth.

Financial highlights

• Net interest income was $78.9 million, stable sequentially and up 18% year-over-year.

• Non-interest income totaled $17.2 million, flat sequentially and up 16% year-over-year.

• Non-interest expense was $52.4 million, up 5% sequentially due to seasonal and merit increases.

• Allowance for credit losses was $78.5 million (1.34% of loans), with provision expense of $2.0 million.

• Annualized net charge-offs were 0.08% of average loans.

Outlook and guidance

• Management expects continued profitability, supported by a strong lending pipeline and diversified growth.

• Integration of Heartland BancCorp is progressing well, with talent additions in wealth management and commercial lending.