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Mar 31, 2023
German American Q1 2023 Earnings Report
Reported earnings with an increase compared to Q1 2022 and a decrease compared to Q4 2022. The company experienced challenges including deposit declines and margin compression.
Key Takeaways
German American Bancorp, Inc. reported first quarter earnings of $20.8 million, or $0.71 per share. This represents an increase from Q1 2022 but a decrease from Q4 2022. The quarter was marked by deposit declines and a compressed net interest margin due to rising deposit costs.
First quarter earnings were $20.8 million, or $0.71 per share.
Deposits declined by approximately $195 million, or 4%, on a linked quarter basis, but the core deposit base stabilized mid-quarter.
Total loans were down $15.8 million on a linked quarter basis, primarily due to seasonal reductions in agricultural lines of credit.
Net interest margin declined from 3.78% to 3.69% during the first quarter of 2023.
Forward Guidance
While the banking industry experienced volatility in the last part of the first quarter, German American remains extremely well positioned with solid liquidity, strong capital and a diverse core deposit base which speaks to the strength and resilience of our Company. While we anticipate some potential recessionary headwinds in 2023, we remain confident in the strength of our Company
Positive Outlook
- Solid liquidity
- Strong capital
- Diverse core deposit base
- Relationship-focused team of professionals
- Committed to the vitality and growth of our Indiana and Kentucky communities
Challenges Ahead
- Potential recessionary headwinds in 2023
Historical Earnings Impact
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Avg. Return Before/After Earnings
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