German American Bancorp Q4 net income rises, dividend up 7%

Overview

• Regional bank's Q4 net income rose 1% from Q3, with adjusted EPS at $0.96

• Company declared 7% cash dividend increase, marking 14th consecutive yr of growth

• Heartland Bank acquisition boosts asset and loan growth

Outlook

• Company did not provide specific financial guidance for future quarters or full year in its press release

Result Drivers

• NET INTEREST MARGIN - Co reported a robust net interest margin of 4.13% for Q4 2025, driven by lower deposit costs

• LOAN GROWTH - Strong loan growth in Q4 2025, with end of period loans increasing $97 mln, or approximately 7% annualized, across commercial, agriculture, and consumer categories

• HEARTLAND ACQUISITION - Heartland Bank acquisition contributed to significant asset and loan growth, with total loans increasing $1.751 bln compared to December 31, 2024

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for German American Bancorp Inc is $45.00, about 11.8% above its January 23 closing price of $40.25

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nBw3chQMda

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