German American Bancorp (GABC) investor relations material

Executive summary

• Achieved record quarterly net income of $38.2 million ($1.02 per share), up 16% sequentially and 21% year-over-year, marking the highest in company history.

• Return on average assets reached 1.80% and return on average tangible common equity (ROATCE) was 19.43%, both improved from prior periods.

• Board declared a $0.31 per share quarterly dividend, payable August 20, 2026.

Financial highlights

• Net interest income rose to $81.2 million, up 3% from Q1 2026 and 11% from Q2 2025.

• Net interest margin expanded to 4.30% (core adjusted 4.13%), up from 4.26% in Q1 2026 and 3.92% in Q2 2025.

• Non-interest income increased 9% sequentially and 12% year-over-year, led by wealth management and interchange fees.

• Non-interest expense declined 4% sequentially to $50.4 million, with efficiency ratio improving to 47.38%.

Outlook and guidance

• Management expects continued profitability, supported by strong net interest margin, solid non-interest income, and controlled expenses.

• Deposit growth is highlighted as key to funding anticipated loan growth in the second half of 2026.