German American Bancorp, Inc. reported a net income of $83.8 million, or $2.83 per share, for the fiscal year ending December 31, 2024, reflecting a decrease of approximately 3% from the previous year's net income of $85.9 million, or $2.91 per share. The decline in profitability was influenced by merger-related costs associated with the acquisition of Heartland BancCorp, which amounted to $1.4 million before tax. Additionally, the company recorded a significant loss of approximately $34.9 million from the restructuring of its securities portfolio, which included the sale of available-for-sale securities totaling $375.3 million in book value.
In terms of operational changes, German American Bancorp completed the acquisition of Heartland BancCorp on February 1, 2025, which added approximately $1.97 billion in assets, $1.56 billion in loans, and $1.75 billion in deposits to its balance sheet. This strategic move is expected to enhance the company's regional presence and profitability by expanding its customer base and product offerings. Furthermore, the company sold its insurance subsidiary, German American Insurance, Inc., for $40 million in cash, resulting in an after-tax gain of approximately $27.5 million.
The company’s total loans increased by $155.4 million, or 4%, from the previous year, with notable growth in commercial real estate loans, which rose by $103 million, or 5%. The overall loan portfolio remains diversified, with commercial real estate loans constituting 54% of total loans. As of December 31, 2024, the company reported total assets of $6.3 billion, an increase from $6.2 billion in 2023, and total deposits of $5.3 billion, up from $5.3 billion in the prior year.
German American Bancorp maintained a strong capital position, with a total capital ratio of 17.15% and a Tier 1 capital ratio of 15.72% as of December 31, 2024, both exceeding the minimum regulatory requirements. The company’s allowance for credit losses stood at $44.4 million, representing 1.08% of total loans, indicating a stable credit quality despite the economic pressures from rising interest rates and inflation. Looking ahead, the company plans to continue evaluating opportunities for growth through new banking offices and potential acquisitions, while also managing its interest rate risk and liquidity effectively.
About GERMAN AMERICAN BANCORP, INC.
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