Loading...
•
Dec 31, 2021
German American Q4 2021 Earnings Report
Reported a decline in net income and earnings per share compared to the previous quarter and the same quarter last year, primarily due to lower PPP loan fee income and elevated non-recurring expenses.
Key Takeaways
German American Bancorp reported a decrease in net income for Q4 2021 to $19.3 million, or $0.73 per share, compared to Q4 2020. The decline was attributed to reduced net interest income from lower PPP loan fee income and elevated non-interest expenses related to management initiatives.
Net income for Q4 2021 was $19.3 million, or $0.73 per share, down from $20.9 million, or $0.79 per share, in Q4 2020.
Net interest income decreased due to lower fee income from PPP loans.
Non-interest expense increased due to non-recurring expenses associated with management initiatives.
The company's Board approved a new share repurchase plan for up to one million shares and a 10% increase in the quarterly cash dividend.
Forward Guidance
The company anticipates challenges in 2022 but expects initiatives to mitigate the impact and position the company for a stronger future.
Positive Outlook
- Acquisition of Citizens Union Bancorp of Shelbyville, Kentucky on January 1, 2022, expands presence in the Greater Louisville market.
- Opening of a loan production office in the Greater Indianapolis area (Greenwood, Indiana) is anticipated in Q1 2022.
- Optimization and continuous improvement initiatives completed in 2021 will enhance future balance sheet growth and operating performance.
- The company expects initiatives will mitigate challenges in 2022.
- German American is expected to be in an even stronger position when the general economy returns to a more normalized environment in the coming years.
Challenges Ahead
- 2022 is expected to be a very challenging year.
- Lower market interest rates continue to negatively impact earning asset yields.
- The Company has also continued to carry excess liquidity on the balance sheet that resulted from significant deposit growth during 2020 and continued in 2021, forgiveness of PPP loans, and somewhat muted loan growth.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...