German American Bancorp, Inc. (GABC) Reports Record Fourth Quarter and Strong Annual 2025 Earnings; Declares 7% Cash Dividend Increase

JASPER, Ind.--( BUSINESS WIRE)--German American Bancorp, Inc. (Nasdaq: GABC) (“German American” or the “Company”) reported record earnings for the three months ended December 31, 2025. The Company also announced a 7% increase in its regular quarterly cash dividend, as its Board of Directors declared a regular quarterly cash dividend of $0.31 per share, which will be payable on February 20, 2026 to shareholders of record as of February 10, 2026.

For the three months ended December 31, 2025, the Company reported net income of $35.7 million, or $0.95 per share, reflecting a linked quarter increase of $0.7 million, or approximately 1% on a per share basis, from previous record third quarter 2025 net income of $35.1 million, or $0.94 per share. The Company also reported strong annual net income of $112.6 million, or $3.06 per share, for the year ended December 31, 2025, reflecting a year-over-year increase of $28.8 million, or approximately 8% on a per share basis, from year end December 31, 2024 net income of $83.8 million, or $2.83 per share.

On an adjusted basis*, net income for the three months ended December 31, 2025 was $35.9 million, or $0.96 per share, reflecting a linked quarter increase of $1.5 million, or approximately 4.4% on a per share basis, from previous third quarter net income of $34.4 million, or $0.92 per share. On an adjusted basis*, net income for the year ended December 31, 2025 was $129.7 million, or $3.52 per share, reflecting a year-over-year increase of $45.9 million, or approximately 24% on a per share basis, from year end December 31, 2024.

Profitability and capital measures remained strong as ROAA for the fourth quarter of 2025 was 1.67% (1.68% as adjusted*) and ROATCE was 19.5% (19.6% as adjusted*). These compared to ROAA of 1.68% (1.65% as adjusted*) and ROATCE of 21.1% (20.8% as adjusted*) in the third quarter of 2025.

___________________________________________

* Represents a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

Fourth Quarter 2025 highlights include:

D. Neil Dauby, Chairman and CEO of German American stated, “We are extremely pleased to deliver yet another record quarterly earnings performance for the fourth quarter 2025 and for the year ended December 31, 2025. We have great positive momentum as we head into 2026 and are excited about the long-term potential in connection with a normalizing yield curve and our strong diversified organic growth footprint.”

Dauby also stated, “We continue to add top talent to our relationship-focused team of professionals, and with their dedicated efforts, we are confident that our strong community presence, healthy financial condition and disciplined approach to growth will continue to drive future profitability and long-term shareholder value. We remain excited and committed to the vitality and future growth of our Indiana, Kentucky and Ohio communities.”

Balance Sheet Highlights

On February 1, 2025, the Company completed its acquisition of Heartland BancCorp ("Heartland") through the merger of Heartland with and into the Company. Immediately following completion of the Heartland holding company merger, Heartland’s subsidiary bank, Heartland Bank, was merged with and into the Company’s subsidiary bank, German American Bank (the "Bank"). Heartland, headquartered in Whitehall, Ohio, operated 20 retail banking offices located in Columbus, Ohio and Greater Cincinnati. As of the closing of the transaction, Heartland had total assets of approximately $1.94 billion, total loans of approximately $1.58 billion, and total deposits of approximately $1.73 billion. The Company issued approximately 7.74 million shares of its common stock, and paid approximately $23.1 million in cash, in exchange for all of the issued and outstanding shares of common stock of Heartland and in cancellation of all options to acquire Heartland common stock outstanding as of the effective time of the merger.

Total assets for the Company totaled $8.389 billion at December 31, 2025, representing a decline of $12.5 million compared with September 30, 2025 and an increase of $2.093 billion compared with December 31, 2024. The increase in total assets at December 31, 2025 compared with December 31, 2024 was, in large part, attributable to the Heartland acquisition, with continued organic loan growth also contributing to the increase.

December 31, 2025 total loans increased $96.8 million, or 7% on an annualized basis, compared with September 30, 2025 and increased $1.751 billion compared with December 31, 2024. The increase during the fourth quarter of 2025 compared with September 30, 2025 was broad-based across most segments of the portfolio and throughout the Company's footprint. Commercial and industrial loans increased $33.0 million, or 16% on an annualized basis, commercial real estate loans increased $39.3 million, or 5% on an annualized basis, and agricultural loans reflected a seasonal increase of $16.4 million, or 14% on an annualized basis. Retail loans grew by $8.2 million, or 2% on an annualized basis, due in large part to strong home equity loan originations, which were partially offset by a reduced level of residential mortgage loans. The increase at December 31, 2025 compared with December 31, 2024 was largely due to the acquisition of Heartland in addition to continued organic loan growth throughout the Company's existing market areas. Excluding loans acquired through the Heartland acquisition, total loans increased $261.9 million, or 6%, during 2025.

The composition of the loan portfolio has remained relatively stable and diversified over the past several years. The addition of the Heartland loan portfolio resulted in only modest changes to the overall portfolio composition, most notably in the residential mortgage loan segment. The portfolio is most heavily weighted in commercial real estate loans at 53% of the portfolio, followed by commercial and industrial loans at 14% of the portfolio, residential mortgage loans at 13% of the portfolio (up from 9% at December 31, 2024), agricultural loans at 8% of the portfolio, and home equity loans at 8% of the portfolio. The Company’s commercial lending is extended to various industries, including multi-family housing and lodging, agribusiness and manufacturing, as well as health care, wholesale, and retail services.

End of Period Loan Balances

12/31/2025

9/30/2025

12/31/2024

(dollars in thousands)

Commercial & Industrial Loans

848,240

815,222

671,038

Commercial Real Estate Loans

3,142,472

3,103,181

2,224,872

Agricultural Loans

489,168

472,807

431,037

Consumer Loans

630,015

603,742

448,872

Residential Mortgage Loans

774,553

792,670

357,448

5,884,448

5,787,622

4,133,267

The Company’s allowance for credit losses totaled $77.7 million at December 31, 2025 compared to $76.1 million at September 30, 2025 and $44.4 million at December 31, 2024. The allowance for credit losses represented 1.32% of period-end loans at both December 31, 2025 and September 30, 2025 and 1.08% of period-end loans at December 31, 2024.

The Company added $32.7 million to the allowance for credit losses in conjunction with the closing of the Heartland acquisition on February 1, 2025, related to the Heartland loan portfolio. Of the increase in the allowance for credit losses for the Heartland portfolio, $16.2 million was recorded through the "Day 2" provision for credit losses under the CECL model. In a transaction like the Heartland merger, the current accounting rules require the acquirer to recognize an allowance for credit losses in the period of acquisition for both purchased credit deterioration (“PCD”) assets and non-PCD assets. The determination of PCD versus non-PCD determines how the allowance for credit loss flows through the financial statements. For PCD assets, the gross-up method includes the impact in the “Day 1” business combination entries with no impact to expense. For non-PCD assets, the impact is reflected outside of the business combination entries (sometimes referred to as “Day 2”) and is reflected in expense.

Under the CECL model, certain acquired loans continue to carry a fair value discount as well as an allowance for credit losses. As of December 31, 2025, the Company held net discounts on acquired loans of $52.8 million, which included $50.7 million related to the Heartland loan portfolio.

Non-performing assets totaled $29.5 million at December 31, 2025, $23.7 million at September 30, 2025, and $11.1 million at December 31, 2024. Non-performing assets represented 0.35% of total assets at December 31, 2025, 0.28% at September 30, 2025 and 0.18% at December 31, 2024. Non-performing loans represented 0.50% of total loans at December 31, 2025, 0.41% at September 30, 2025, and 0.27% at December 31, 2024.

The increase in non-performing assets during the fourth quarter of 2025 was largely related to two commercial relationships acquired in the Heartland transaction. The relationships were identified as adversely classified at the time of acquisition and have subsequently been placed on non-accrual status. The overall increase in non-performing assets at December 31, 2025 compared with year-end 2024 was largely attributable to the Heartland acquisition with non-performing assets from the Heartland acquisition totaling approximately $18.6 million at year-end 2025.

Non-performing Assets

(dollars in thousands)

12/31/2025

9/30/2025

12/31/2024

Non-Accrual Loans

29,319

23,676

10,934

Past Due Loans (90 days or more)

—

188

Total Non-Performing Loans

29,411

23,676

11,122

Other Real Estate

—

Total Non-Performing Assets

29,479

23,724

11,122

December 31, 2025 total deposits declined $24.8 million, or 1% on an annualized basis, compared to September 30, 2025 and increased $1.661 billion compared with December 31, 2024. The increase in total deposits at December 31, 2025 compared with year-end 2024 was largely attributable to the Heartland acquisition. As of December 31, 2025, deposits from the Heartland acquisition totaled $1.559 billion.

The addition of the Heartland deposit portfolio did not result in significant changes to the overall deposit portfolio composition. Notably, non-interest bearing deposits have remained relatively stable as a percent of total deposits at approximately 28% at both December 31, 2025 and September 30, 2025, and 26% at year-end 2024.

End of Period Deposit Balances

12/31/2025

9/30/2025

12/31/2024

(dollars in thousands)

Non-interest-bearing Demand Deposits

1,944,831

1,938,522

1,399,270

IB Demand, Savings, and MMDA Accounts

3,755,374

3,714,191

3,013,204

Time Deposits < $100,000

475,943

502,548

327,080

Time Deposits > $100,000

813,594

859,241

589,521

6,989,742

7,014,502

5,329,075

At December 31, 2025, the capital levels for the Company and the Bank remained well in excess of the minimum amounts needed for capital adequacy purposes and the Bank’s capital levels met the necessary requirements to be considered well-capitalized.

12/31/2025

Ratio

9/30/2025

Ratio

12/31/2024

Ratio

Total Capital (to Risk Weighted Assets)

Consolidated

14.93

15.07

17.15

Bank

13.80

14.00

15.02

Tier 1 (Core) Capital (to Risk Weighted Assets)

Consolidated

14.04

13.83

15.72

Bank

12.91

13.10

14.23

Common Tier 1 (CET 1) Capital Ratio

(to Risk Weighted Assets)

Consolidated

13.52

13.30

15.02

Bank

12.91

13.10

14.23

Tier 1 Capital (to Average Assets)

Consolidated

11.54

11.40

12.28

Bank

10.61

10.80

11.12

Results of Operations Highlights – Year ended December 31, 2025

Net income for the year ended December 31, 2025 totaled $112,635,000, or $3.06 per share, an increase of $28,824,000, or approximately 8% on a per share basis, from the year ended December 31, 2024 net income of $83,811,000, or $2.83 per share. The year ended December 31, 2025 results of operations included Heartland acquisition-related expenses of $6,996,000 ($5,418,000, on an after-tax basis) and the “Day 2” provision for credit losses under the CECL model of $16,200,000 ($12,150,000, on an after-tax basis), as well as a net gain on the redemption of subordinated debentures.

Net income for the year end December 31, 2024 included the sale of the assets of the Company's wholly owned subsidiary German American Insurance, Inc. ("GAI") in the second quarter of 2024, which resulted in an after-tax gain, net of transaction costs, of approximately $27,476,000, or $0.93 per share, and a partial securities portfolio restructuring transaction, also in the second quarter of 2024, resulting in an after-tax loss of $27,189,000, or $0.92 per share.

On an adjusted basis, net income for the year ended December 31, 2025 was $129,684,000, or $3.52 per share, compared with adjusted net income of $83,839,000, or $2.83 per share, for the year ended December 31, 2024. Adjusted net income and adjusted earnings per share are non-GAAP financial measures. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

Summary Average Balance Sheet

(Tax-equivalent basis / dollars in thousands)

Year Ended December 31, 2025

Year Ended December 31, 2024

Principal Balance

Income/ Expense

Yield/Rate

Principal Balance

Income/ Expense

Yield/Rate

Assets

Federal Funds Sold and Other

Short-term Investments

250,520

10,817

4.32

151,907

7,697

5.07

Securities

1,598,251

54,299

3.40

1,534,433

47,496

3.10

Loans and Leases

5,604,879

360,410

6.43

4,035,670

241,344

5.98

Total Interest Earning Assets

7,453,650

425,526

5.71

5,722,010

296,537

5.19

Liabilities

Demand Deposit Accounts

1,851,978

1,420,412

IB Demand, Savings, and MMDA Accounts

3,733,503

65,877

1.76

3,012,073

54,303

1.80

Time Deposits

1,329,638

49,215

3.70

872,429

36,319

4.16

FHLB Advances and Other Borrowings

215,334

10,865

5.05

196,480

9,830

5.00

Total Interest-Bearing Liabilities

5,278,475

125,957

2.39

4,080,982

100,452

2.46

Cost of Funds

1.69

1.76

Net Interest Income, Tax-Equivalent Basis*

299,569

196,085

Net Interest Margin

4.02

3.43

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During the year ended December 31, 2025, net interest income, on a non tax-equivalent basis, totaled $294,132,000, an increase of $103,541,000, or 54%, compared to the year ended December 31, 2024 net interest income of $190,591,000. The increase in net interest income for 2025 compared with 2024 was primarily attributable to a higher level of earning assets driven by the Heartland acquisition and an improvement of the Company’s net interest margin.

The tax equivalent net interest margin for the year ended December 31, 2025 was 4.02% compared with 3.43% for the year ended December 31, 2024. The improvement in the net interest margin, excluding the accretion of discount on acquired loans, during 2025 compared with 2024 was the result of improved yields on earning assets (including both loan and security yields) and a lower cost of deposits. The lower cost of deposits was largely driven by the Federal Reserve's lowering of the Federal Funds rates over the last several months of 2024 and again in the latter months of 2025, and the Company's ability to correspondingly lower deposit costs.

The Company's net interest margin and net interest income in both 2025 and 2024 have been impacted by accretion of loan discounts on acquired loans. Accretion of discounts on acquired loans totaled $15,556,000 during the year ended December 31, 2025 and $1,507,000 during the same period of 2024. Accretion of loan discounts on acquired loans contributed approximately 21 basis points to the net interest margin during 2025 and 3 basis points during 2024.

During the year ended December 31, 2025, the Company recorded a provision for credit losses of $19,425,000, as compared to the provision for credit losses of $2,775,000 recorded for the year ended December 31, 2024. The first quarter of 2025 included a provision for credit losses of $16,200,000 related to the “Day 2” adjustment for the Heartland acquisition.

During the year ended December 31, 2025, non-interest income increased $4,652,000, or 7%, compared with the year ended December 31, 2024. The increase during 2025 compared to 2024 was largely the result of the Heartland acquisition combined with an improvement in the Company’s existing fee revenue sources. The year ended December 31, 2024 included the previously mentioned sale of the GAI assets and the securities portfolio restructuring transaction, which each occurred during the second quarter of 2024. On an adjusted basis, non-interest income for the year ended December 31, 2025 was $66,620,000 compared to $54,691,000 for the same period of 2024. Adjusted non-interest income is a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” section in this Management’s Discussion and Analysis for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

Year Ended

Non-interest Income

12/31/2025

12/31/2024

(dollars in thousands)

Wealth Management Fees

16,808

14,416

Service Charges on Deposit Accounts

15,083

12,669

Insurance Revenues

—

4,384

Company Owned Life Insurance

2,555

2,058

Interchange Fee Income

19,598

17,125

Sale of Assets of German American Insurance

—

38,323

Other Operating Income

8,758

5,419

Subtotal

62,802

94,394

Net Gains on Sales of Loans

4,510

3,054

Net Gains on Securities

—

(34,788

)

Total Non-interest Income

67,312

62,660

Wealth management fees increased $2,392,000, or 17%, during 2025 compared with 2024. The increase during the year ended December 31, 2025 compared with the same period of 2024 was largely attributable to increased assets under management, driven by healthy capital markets throughout 2024 and 2025, and continued strong new business results in addition to the Heartland acquisition.

Service charges on deposit accounts increased $2,414,000, or 19%, during the year ended December 31, 2025, compared with the same period of 2024. The increase during 2025 compared with 2024 was primarily driven by the Heartland acquisition in addition to increased customer utilization of deposit services.

No insurance revenues were recognized during the year ended December 31, 2025 due to the sale of the GAI assets effective June 1, 2024. As a result, insurance revenues declined $4,384,000 during 2025, compared with 2024. As previously discussed, the sale of substantially all of the assets of GAI in June 2024 resulted in net proceeds of $38,323,000.

Interchange fees increased $2,473,000, or 14%, during the year ended December 31, 2025, compared with the same period of 2024. The increase during 2025 compared with 2024 was largely attributable to the Heartland acquisition.

During the year ended December 31, 2025, other operating income increased $3,339,000, or 62%, compared with the same period of 2024. The increase during 2025 compared with 2024 was primarily attributable to the Heartland acquisition.

Net gains on sales of loans increased $1,456,000, or 48%, during the year ended December 31, 2025 compared with the year ended December 31, 2024. The increase during 2025 compared with 2024 was related to the Heartland acquisition and a higher volume of loans sold. Loan sales totaled $193.2 million during 2025 compared with $130.7 million during 2024.

There were no securities transactions during 2025 that resulted in net gains or losses. The net loss on securities during 2024 totaled $34,788,000 which was primarily related to the net loss recognized on the securities restructuring transaction.

During the year ended December 31, 2025, non-interest expense totaled $201,949,000, an increase of $55,572,000, or 38%, compared with the same period of 2024. The primary drivers of the increased operating expenses in 2025 compared with 2024 were the Heartland operating costs and acquisition-related costs.

Each period presented included Heartland acquisition-related expenses, with such amounts being $6,996,000 for the year ended December 31, 2025 and $1,370,000 for the same period of 2024. The year ended December 31, 2024 also included non-recurring professional fees and other costs associated with the GAI asset sale that totaled approximately $1,816,000.

On an adjusted basis, non-interest expense for the year ended December 31, 2025 was $194,953,000 compared to $139,777,000 for the same period of 2024. Adjusted non-interest expense is a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

Year Ended

Non-interest Expense

12/31/2025

12/31/2024

(dollars in thousands)

Salaries and Employee Benefits

107,742

82,257

Occupancy, Furniture and Equipment Expense

19,634

14,944

FDIC Premiums

3,800

2,908

Data Processing Fees

17,579

12,243

Professional Fees

10,418

8,147

Advertising and Promotion

5,153

3,939

Intangible Amortization

10,148

2,032

Other Operating Expenses

27,475

19,907

Total Non-interest Expense

201,949

146,377

Salaries and benefits increased $25,485,000, or 31%, during the year ended December 31, 2025 compared with the year ended December 31, 2024. The increase in 2025 compared with 2024 was due primarily to the salaries and benefits costs for the Heartland employee base.

Occupancy, furniture and equipment expense increased $4,690,000, or 31%, during the year ended December 31, 2025 compared to the year ended December 30, 2024. The increase during 2025 compared with 2024 was primarily attributable to the operating costs of the Heartland branch network.

Data processing fees increased $5,336,000, or 44%, during the year ended December 31, 2025 compared with the year ended December 31, 2024. The increase during 2025 compared with 2024 was largely driven by the Heartland acquisition including operating costs of the existing Heartland systems and acquisition-related costs.

Professional fees increased $2,271,000, or 28%, during the year ended December 31, 2025 compared with 2024. The increase during 2025 compared with 2024 was primarily attributable to the Heartland acquisition and technology support services.

Intangible amortization increased $8,116,000, or 399%, during the year ended December 31, 2025 compared with the same period of 2024. The increase was attributable to the Heartland acquisition.

Other operating expenses increased $7,568,000, or 38%, during the year ended December 31, 2025 compared with the same period of 2024. The increase was largely attributable to the operating costs of Heartland.

Results of Operations Highlights – Quarter ended December 31, 2025

Net income for the quarter ended December 31, 2025 totaled $35,683,000, or $0.95 per share, an increase of 1% on a per share basis compared with the third quarter 2025 net income of $35,074,000, or $0.94 per share, and an increase of 22% on a per share basis compared with the fourth quarter 2024 net income of $23,211,000, or $0.78 per share.

On an adjusted basis, net income for the fourth quarter of 2025 was $35,895,000, or $0.96 per share, compared with adjusted net income of $34,444,000, or $0.92 per share, for the third quarter of 2025, and $23,419,000, or $0.79 per share, for the fourth quarter of 2024. Adjusted net income and adjusted earnings per share are non-GAAP financial measures. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

Summary Average Balance Sheet

(Tax-equivalent basis / dollars in thousands)

Quarter Ended

December 31, 2025

September 30, 2025

December 31, 2024

Principal Balance

Income/ Expense

Yield/ Rate

Principal Balance

Income/ Expense

Yield/ Rate

Principal Balance

Income/ Expense

Yield/ Rate

Assets

Federal Funds Sold and Other

Short-term Investments

260,338

2,585

3.94

187,648

2,084

4.41

238,883

2,792

4.65

Securities

1,649,499

13,890

3.37

1,584,261

13,622

3.44

1,545,772

12,579

3.26

Loans and Leases

5,828,461

94,442

6.44

5,766,875

93,664

6.45

4,094,333

62,356

6.06

Total Interest Earning Assets

7,738,298

110,917

5.70

7,538,784

109,370

5.77

5,878,988

77,727

5.27

Liabilities

Demand Deposit Accounts

1,948,794

1,912,208

1,422,400

IB Demand, Savings, and MMDA Accounts

3,828,648

15,745

1.63

3,753,235

17,086

1.81

3,058,257

13,638

1.77

Time Deposits

1,335,506

12,268

3.64

1,330,944

12,330

3.68

911,613

9,235

4.03

FHLB Advances and Other Borrowings

219,970

2,648

4.78

216,460

2,956

5.42

214,915

2,650

4.91

Total Interest-Bearing Liabilities

5,384,124

30,661

2.26

5,300,639

32,372

2.42

4,184,785

25,523

2.43

Cost of Funds

1.57

1.71

1.73

Net Interest Income, Tax-Equivalent Basis*

80,256

76,998

52,204

Net Interest Margin

4.13

4.06

3.54

During the fourth quarter of 2025, net interest income, on a non tax-equivalent basis, totaled $78,680,000, an increase of $2,955,000, or 4%, compared to the third quarter of 2025 net interest income of $75,725,000 and an increase of $27,648,000, or 54%, compared to the fourth quarter of 2024 net interest income of $51,032,000.

The increase in net interest income during the fourth quarter of 2025 compared with the third quarter of 2025 was primarily driven by improvement in the Company's net interest margin along with continued growth of earning assets. The increase in net interest income during the fourth quarter of 2025 compared with the fourth quarter of 2024 was primarily attributable to a higher level of average earning assets driven in large part by the Heartland acquisition and improvement of the Company's net interest margin.

The tax equivalent net interest margin for the quarter ended December 31, 2025 was 4.13% compared with 4.06% in the third quarter of 2025 and 3.54% in the fourth quarter of 2024. The continued improvement in the net interest margin during the fourth quarter of 2025 compared with the third quarter of 2025 was driven by a lower cost of funds, primarily attributable to lower deposit costs. The improvement in the net interest margin, excluding the accretion of discount on acquired loans, during the fourth quarter of 2025 compared with the fourth quarter of 2024 was largely driven by an improved yield on earning assets (including both loan and security yields) and a lower cost of deposits.

The Company's net interest margin and net interest income in all periods presented have been impacted by accretion of loan discounts on acquired loans. Accretion of discounts on acquired loans totaled $3,966,000 during the fourth quarter of 2025, $3,914,000 during the third quarter of 2025, and $617,000 during the fourth quarter of 2024. Accretion of loan discounts on acquired loans contributed approximately 21 basis points to the net interest margin in the both the third and fourth quarters of 2025 and 4 basis points in the fourth quarter of 2024.

During the quarter ended December 31, 2025, the Company recorded a provision for credit losses of $2,225,000 compared with a provision for credit losses of $700,000 in the third quarter of 2025 and a provision for credit losses of $625,000 during the fourth quarter of 2024. Net charge-offs totaled $588,000, or 4 basis points on an annualized basis, of average loans outstanding during the fourth quarter of 2025 compared with $748,000, or 5 basis points on an annualized basis, of average loans during the third quarter of 2025 and $313,000, or 3 basis points on an annualized basis, of average loans during the fourth quarter of 2024.

During the quarter ended December 31, 2025, non-interest income totaled $17,310,000, a decline of $1,119,000, or 6%, compared with the third quarter of 2025 and an increase of $3,196,000, or 23%, compared with the fourth quarter of 2024. The decline in non-interest income during the fourth quarter of 2025 compared with the third quarter of 2025 was largely driven by a $283,000 loss on the extinguishment of debt resulting from the redemption of $40.0 million of the Company's fixed-to-floating rate subordinated notes during the fourth quarter of 2025 and a $975,000 gain on the extinguishment of debt resulting from the redemption of $24.3 million of fixed-to-floating rate subordinated notes during the third quarter of 2025. The increase during the fourth quarter of 2025 compared to the same period of 2024 was largely the result of the Heartland acquisition and improvement of the Company's existing fee revenue generation.

Excluding the loss and gain on the extinguishment of debt discussed above, non-interest income on an adjusted basis for the fourth quarter of 2025 was $17,593,000 and $17,454,000 for the third quarter of 2025. Adjusted non-interest income is a non-GAAP financial measure. Refer to “Use of Non-GAAP Financial Measures” contained in this release for additional information, including a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.

Quarter Ended

Non-interest Income

12/31/2025

9/30/2025

12/31/2024

(dollars in thousands)

Wealth Management Fees

4,519

4,288

3,687

Service Charges on Deposit Accounts

3,956

3,927

3,344

Insurance Revenues

—

Company Owned Life Insurance

647

630

616

Interchange Fee Income

5,033

5,087

4,244

Sale of Assets of German American Insurance

—

Other Operating Income

2,046

3,308

1,593

Subtotal

16,201

17,240

13,484

Net Gains on Sales of Loans

1,109

1,189

630

Net Gains (Losses) on Securities

—

Total Non-interest Income

17,310

18,429

14,114

Wealth management fees increased $231,000, or 5%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $832,000, or 23%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the third quarter of 2025 was largely attributable to strong new business growth resulting in increased assets under management. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was also largely attributable to increased assets under management driven by healthy capital markets throughout 2024 and much of 2025, and continued strong new business results in addition to the Heartland acquisition.

Service charges on deposit accounts remained relatively stable, increasing 1%, during the quarter ended December 31, 2025 compared with the third quarter of 2025 and increased $612,000, or 18%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was primarily driven by the Heartland acquisition in addition to increased customer utilization of deposit services.

Interchange fees remained relatively stable, declining 1%, during the quarter ended December 31, 2025 compared with the third quarter of 2025 and increased $789,000, or 19%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was largely attributable to the Heartland acquisition.

Other operating income declined $1,262,000, or 38%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $453,000, or 28%, compared with the fourth quarter of 2024. The decline in non-interest income during the fourth quarter of 2025 compared with the third quarter of 2025 was largely driven by the previously discussed $283,000 loss on the extinguishment of debt during the fourth quarter of 2025 and the $975,000 gain on the extinguishment of debt during the third quarter of 2025.

Net gains on sales of loans declined $80,000, or 7%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $479,000, or 76%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was largely related to the Heartland acquisition and a higher volume of loans sold. Loan sales totaled $48.2 million during the fourth quarter of 2025 compared with $55.5 million during the third quarter of 2025 and $33.5 million during the fourth quarter of 2024.

During the quarter ended December 31, 2025, non-interest expense totaled $49,950,000, an increase of $250,000, or less than 1%, compared with the third quarter of 2025, and an increase of $14,110,000, or 39%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was primarily driven by the operating costs associated with the Heartland acquisition.

Quarter Ended

Non-interest Expense

12/31/2025

9/30/2025

12/31/2024

(dollars in thousands)

Salaries and Employee Benefits

27,620

25,444

20,404

Occupancy, Furniture and Equipment Expense

4,965

5,255

3,773

FDIC Premiums

953

1,059

714

Data Processing Fees

3,823

4,175

3,257

Professional Fees

2,162

1,960

1,178

Advertising and Promotion

1,078

1,321

951

Intangible Amortization

2,582

2,693

438

Other Operating Expenses

6,767

7,793

5,124

Total Non-interest Expense

49,950

49,700

35,839

Salaries and benefits increased $2,176,000, or 9%, during the quarter ended December 31, 2025 compared with the third quarter of 2025 and increased $7,216,000, or 35%, compared with the fourth quarter of 2024. The increase in salaries and benefits during the fourth quarter of 2025 compared with the third quarter of 2025 was attributable to an increased incentive compensation cost and health insurance costs. The increase in the fourth quarter of 2025 compared with the fourth quarter of 2024 was largely due to the salaries and benefits costs for the Heartland employee base as well as increased incentive compensation plan costs.

Occupancy, furniture and equipment expense declined $290,000, or 6%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $1,192,000, or 17%, compared to the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the fourth quarter of 2024 was primarily attributable to the operating costs of the Heartland branch network.

Data processing fees declined $352,000, or 8%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $566,000, or 32%, compared with the third quarter of 2024. The decline during the fourth quarter of 2025 compared with the third quarter of 2025 was primarily related to non-recurring elevated costs in the third quarter of 2025. The increase during the fourth quarter of 2025 compared with the same period of 2024 was largely driven by operating costs associated with the Heartland acquisition and continued enhancements to existing data systems and processes.

Professional fees increased $202,000, or 10%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $984,000, or 84%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the same period of 2024 was largely driven by the Heartland acquisition and technology support services.

Intangible amortization declined $111,000, or 4%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $2,144,000, or 490%, compared with the fourth quarter of 2024. The increase during the fourth quarter of 2025 compared with the same period of 2024 was attributable to the Heartland acquisition.

Other operating expenses declined $1,026,000, or 13%, during the fourth quarter of 2025 compared with the third quarter of 2025 and increased $1,643,000, or 32%, compared with the fourth quarter of 2024. The decline during the fourth quarter of 2025 compared with the third quarter of 2025 was largely the result of a decline in amortization expense for residential mortgage servicing rights and a reduction of reserves related to unfunded loan commitments. The increase in the fourth quarter of 2025 compared to the fourth quarter of 2024 was largely attributable to operating costs of Heartland.

About German American

German American Bancorp, Inc. (Nasdaq: GABC) is a financial holding company based in Jasper, Indiana. German American, through its banking subsidiary German American Bank, operates 94 banking offices located throughout Indiana (central/southern), Kentucky (northern/central/western), and Ohio (central/ southwest). In Columbus, Ohio and Greater Cincinnati, the Company does business as Heartland Bank, a Division of German American Bank. The Company also owns an investment brokerage subsidiary, German American Investment Services, Inc.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned that, by their nature, forward-looking statements are based on assumptions and are subject to risks, uncertainties, and other factors. Forward-looking statements can often, but not always, be identified by the use of words like “believe”, “continue”, “pattern”, “estimate”, “project”, “intend”, “anticipate”, “expect” and similar expressions or future or conditional verbs such as “will”, “would”, “should”, “could”, “might”, “can”, “may”, or similar expressions.

Actual results and experience could differ materially from the anticipated results or other expectations expressed or implied by these forward-looking statements as a result of a number of factors, including but not limited to, those discussed in this press release. Factors that could cause actual experience to differ from the expectations expressed or implied in this press release include:

changes in interest rates and the timing and magnitude of any such changes;

unfavorable economic conditions, including a prolonged period of inflation, and the resulting adverse impact on, among other things, credit quality;

the soundness of other financial institutions and general investor sentiment regarding the stability of financial institutions;

changes in our liquidity position;

the impacts of epidemics, pandemics or other infectious disease outbreaks;

changes in competitive conditions;

the introduction, withdrawal, success and timing of asset/liability management strategies or of mergers and acquisitions and other business initiatives and strategies;

changes in customer borrowing, repayment, investment and deposit practices;

changes in fiscal, monetary and tax policies;

changes in financial and capital markets;

capital management activities, including possible future sales of new securities, or possible repurchases or redemptions by German American of outstanding debt or equity securities;

risks of expansion through acquisitions and mergers, including the possibility that the anticipated cost savings and strategic gains, are not realized when expected or at all as a result of unexpected credit quality problems of the acquired loans or other assets, unexpected attrition of the customer base or employee base of the acquired institution or branches, and difficulties in integration of the acquired operations;

factors driving credit losses on investments;

the impact, extent and timing of technological changes;

potential cyber-attacks, information security breaches and other criminal activities;

litigation liabilities, including related costs, expenses, settlements and judgments, or the outcome of matters before regulatory agencies, whether pending or commencing in the future;

actions of the Federal Reserve Board;

changes in accounting principles and interpretations;

potential increases of federal deposit insurance premium expense, and possible future special assessments of FDIC premiums, either industry wide or specific to German American’s banking subsidiary;

actions of the regulatory authorities under the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the Federal Deposit Insurance Act and other possible legislative and regulatory actions and reforms;

impacts resulting from possible amendments or revisions to the Dodd-Frank Act and the regulations promulgated thereunder, or to Consumer Financial Protection Bureau rules and regulations;

the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends;

changes to the fair value estimates used by German American in accounting for its acquisition of Heartland, which preliminary valuations must be finalized no later than January 31, 2026; and

other risk factors expressly identified in German American’s cautionary language included under the headings “Forward-Looking Statements and Associated Risk” and “Risk Factors” in German American’s Annual Report on Form 10-K for the year ended December 31, 2024, and other documents subsequently filed by German American with the SEC.

Such statements reflect our views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of German American. Readers are cautioned not to place undue reliance on these forward-looking statements. It is intended that these forward-looking statements speak only as of the date they are made. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.

GERMAN AMERICAN BANCORP, INC.

(unaudited, dollars in thousands except per share data)

Consolidated Balance Sheets

December 31, 2025

September 30, 2025

December 31, 2024

ASSETS

Cash and Due from Banks

71,428

112,718

69,249

Short-term Investments

47,454

143,430

120,043

Investment Securities

1,657,747

1,618,370

1,517,640

Loans Held-for-Sale

7,817

10,058

8,239

Loans, Net of Unearned Income

5,875,097

5,778,505

4,124,902

Allowance for Credit Losses

(77,694

)

(76,057

)

(44,436

)

Net Loans

5,797,403

5,702,448

4,080,466

Stock in FHLB and Other Restricted Stock

17,688

17,856

14,423

Premises and Equipment

139,001

139,850

104,045

Goodwill and Other Intangible Assets

409,260

411,656

183,043

Other Assets

240,982

244,862

198,762

TOTAL ASSETS

8,388,780

8,401,248

6,295,910

LIABILITIES

Non-interest-bearing Demand Deposits

1,944,831

1,938,522

1,399,270

Interest-bearing Demand, Savings, and Money Market Accounts

3,755,374

3,714,191

3,013,204

Time Deposits

1,289,537

1,361,789

916,601

Total Deposits

6,989,742

7,014,502

5,329,075

Borrowings

182,683

211,016

210,131

Other Liabilities

54,030

56,007

41,637

TOTAL LIABILITIES

7,226,455

7,281,525

5,580,843

SHAREHOLDERS’ EQUITY

Common Stock and Surplus

744,314

744,017

421,943

Retained Earnings

582,945

558,086

513,588

Accumulated Other Comprehensive Income (Loss)

(164,934

)

(182,380

)

(220,464

)

SHAREHOLDERS’ EQUITY

1,162,325

1,119,723

715,067

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

8,388,780

8,401,248

6,295,910

END OF PERIOD SHARES OUTSTANDING

37,495,679

37,493,333

29,677,093

TANGIBLE BOOK VALUE PER SHARE (1)

20.08

18.89

17.93

(1)

Tangible Book Value per Share is defined as Total Shareholders’ Equity less Goodwill and Other Intangible Assets divided by End of Period Shares Outstanding.

GERMAN AMERICAN BANCORP, INC.

(unaudited, dollars in thousands except per share data)

Consolidated Statements of Income

Three Months Ended

Year Ended

December 31, 2025

September 30, 2025

December 31, 2024

December 31, 2025

December 31, 2024

INTEREST INCOME

Interest and Fees on Loans

93,785

93,305

62,045

358,597

240,241

Interest on Short-term Investments

2,585

2,084

2,792

10,817

7,697

Interest and Dividends on Investment Securities

12,971

12,708

11,718

50,675

43,105

TOTAL INTEREST INCOME

109,341

108,097

76,555

420,089

291,043

INTEREST EXPENSE

Interest on Deposits

28,013

29,416

22,873

115,092

90,622

Interest on Borrowings

2,648

2,956

2,650

10,865

9,830

TOTAL INTEREST EXPENSE

30,661

32,372

25,523

125,957

100,452

NET INTEREST INCOME

78,680

75,725

51,032

294,132

190,591

Provision for Credit Losses

2,225

700

625

19,425

2,775

NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES

76,455

75,025

50,407

274,707

187,816

NON-INTEREST INCOME

Net Gains on Sales of Loans

1,109

1,189

630

4,510

3,054

Net Gains (Losses) on Securities

—

(34,788

)

Other Non-interest Income

16,201

17,240

13,484

62,802

94,394

TOTAL NON-INTEREST INCOME

17,310

18,429

14,114

67,312

62,660

NON-INTEREST EXPENSE

Salaries and Benefits

27,620

25,444

20,404

107,742

82,257

Other Non-interest Expenses

22,330

24,256

15,435

94,207

64,120

TOTAL NON-INTEREST EXPENSE

49,950

49,700

35,839

201,949

146,377

Income before Income Taxes

43,815

43,754

28,682

140,070

104,099

Income Tax Expense

8,132

8,680

5,471

27,435

20,288

NET INCOME

35,683

35,074

23,211

112,635

83,811

BASIC EARNINGS PER SHARE

0.95

0.94

0.78

3.06

2.83

DILUTED EARNINGS PER SHARE

0.95

0.94

0.78

3.06

2.83

WEIGHTED AVERAGE SHARES OUTSTANDING

37,493,710

37,493,028

29,678,443

36,796,342

29,656,416

DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING

37,493,710

37,493,028

29,678,443

36,796,342

29,656,416

GERMAN AMERICAN BANCORP, INC.

(unaudited, dollars in thousands except per share data)

Three Months Ended

Year Ended

December 31, 2025

September 30, 2025

December 31, 2024

December 31, 2025

December 31, 2024

EARNINGS PERFORMANCE RATIOS

Annualized Return on Average Assets

1.67

1.68

1.45

1.37

1.34

Annualized Return on Average Equity

12.49

13.00

12.67

10.72

12.22

Annualized Return on Average Tangible Equity (1)

19.49

21.14

16.90

17.19

16.72

Net Interest Margin

4.13

4.06

3.54

4.02

3.43

Efficiency Ratio (2)

48.55

49.26

53.38

52.28

49.18

Net Overhead Expense to Average Earning Assets (3)

1.69

1.66

1.48

1.81

1.46

ASSET QUALITY RATIOS

Annualized Net Charge-offs to Average Loans

0.04

0.05

0.03

0.05

Allowance for Credit Losses to Period End Loans

1.32

1.08

Non-performing Assets to Period End Assets

0.35

0.28

0.18

Non-performing Loans to Period End Loans

0.50

0.41

0.27

Loans 30-89 Days Past Due to Period End Loans

0.37

0.30

0.33

SELECTED BALANCE SHEET & OTHER FINANCIAL DATA

Average Assets

8,533,883

8,350,565

6,384,219

8,237,194

6,233,753

Average Earning Assets

7,738,298

7,538,784

5,878,988

7,453,650

5,722,010

Average Total Loans

5,828,461

5,766,875

4,094,333

5,604,879

4,035,670

Average Demand Deposits

1,948,794

1,912,208

1,422,400

1,851,978

1,420,412

Average Interest Bearing Liabilities

5,384,124

5,300,639

4,184,785

5,278,475

4,080,982

Average Equity

1,142,357

1,079,359

732,698

1,050,990

685,862

Period End Non-performing Assets (4)

29,479

23,724

11,122

Period End Non-performing Loans (5)

29,411

23,676

11,122

Period End Loans 30-89 Days Past Due (6)

21,880

17,091

13,727

Tax-Equivalent Net Interest Income

80,256

76,998

52,204

299,569

196,085

Net Charge-offs during Period

588

748

313

2,670

2,104

(1)

Average Tangible Equity is defined as Average Equity less Average Goodwill and Other Intangibles.

(2)

Efficiency Ratio is defined as Non-interest Expense less Intangible Amortization divided by the sum of Net Interest Income, on a tax-equivalent basis, and Non-interest Income less Net Gains (Losses) on Securities.

(3)

Net Overhead Expense is defined as Total Non-interest Expense less Total Non-interest Income.

(4)

Non-performing assets are defined as Non-accrual Loans, Loans Past Due 90 days or more, and Other Real Estate Owned.

(5)

Non-performing loans are defined as Non-accrual Loans and Loans Past Due 90 days or more.

(6)

Loans 30-89 days past due and still accruing.

The accounting and reporting policies of German American Bancorp, Inc. (the “Company”) conform to U.S. generally accepted accounting principles (“GAAP”) and general practices within the banking industry. As a supplement to GAAP, the Company has provided certain, non-GAAP financial measures, which it believes are useful because they assist investors in assessing the Company’s operating performance. Specifically, the Company has presented its net income, earnings per share, provision for credit losses, non-interest expense, non-interest income, efficiency ratio, return on average assets, return on average equity, return on tangible equity, and net interest margin on an as adjusted basis for the periods set forth below to reflect the exclusion of the following items: (1) the Current Expected Credit Losses (“CECL”) “Day 2” provision expense for acquired loans that have only insignificant credit deterioration (i.e., non-PCD loans) related to the Heartland merger; (2) non-recurring expenses related to the Heartland merger; (3) the gain and loss on the extinguishment of debt resulting from the redemption of certain subordinated notes on September 15, 2025 and December 30, 2025, respectively; (4) the operating results for German American Insurance, Inc. (“GAI”), whose assets were sold effective June 1, 2024; (5) the gain on the sale of GAI assets; and (6) the loss related to the securities portfolio restructuring transaction that occurred in the second quarter of 2024. Management believes excluding such items from these financial measures may be useful in assessing the Company’s underlying operational performance since the applicable transactions do not pertain to its core business operations and exclusion may facilitate better comparability between periods. In addition, management believes that by excluding such items the measures are useful to the Company, as well as analysts and investors, in assessing operating performance. Management also believes excluding these items may enhance comparability for peer comparison purposes.

Management believes that it is standard practice in the banking industry to present the efficiency ratio and net interest margin on a fully tax-equivalent basis and that, by doing so, it may enhance comparability for peer comparison purposes. The tax-equivalent adjustment to net interest income (for purposes of the efficiency ratio) and net interest margin recognizes the income tax savings when comparing taxable and tax-exempt assets. Interest income and yields on tax-exempt securities and loans are presented using the current federal income tax rate of 21%.

Although intended to enhance investors’ understanding of the Company’s business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP.

Non-GAAP Reconciliation – Net Income and Earnings Per Share

Three Months Ended

Year Ended

(Dollars in Thousands, except per share amounts)

12/31/2025

09/30/2025

12/31/2024

12/31/2025

12/31/2024

Net Income, as reported

35,683

35,074

23,211

112,635

83,811

Adjustments:

Plus: CECL Day 2 non-PCD provision

—

12,150

—

Plus: Non-recurring merger-related expenses

—

101

154

5,418

1,082

Less: Gain (loss) on debt extinguishment

(212

)

731

—

519

—

Less: Loss on securities restructuring

—

(27,189

)

Less: Income from GAI operations

—

(54

)

—

767

Less: Gain on sale of GAI assets

—

27,476

Adjusted Net Income

35,895

34,444

23,419

129,684

83,839

Weighted Average Shares Outstanding

37,493,710

37,493,028

29,678,443

36,796,342

29,656,416

Earnings Per Share, as reported

0.95

0.94

0.78

3.06

2.83

Earnings Per Share, as adjusted

0.96

0.92

0.79

3.52

2.83

Non-GAAP Reconciliation – Non-Interest Income and Non-Interest Expense

Three Months Ended

Year Ended

(Dollars in Thousands)

12/31/2025

09/30/2025

12/31/2024

12/31/2025

12/31/2024

Non-Interest Income

17,310

18,429

14,114

67,312

62,660

Less: Gains (Losses) on securities

—

105

Less: Loss on securities restructuring

—

(34,893

)

Less: Gain (loss) on debt extinguishment

(283

)

975

—

692

—

Less: Revenue from GAI operations

—

4,434

Less: Gain on sale of GAI assets

—

38,323

Adjusted Non-Interest Income

17,593

17,454

14,114

66,620

54,691

Non-Interest Expense

49,950

49,700

35,839

201,949

146,377

Less: Non-recurring merger-related expenses

—

135

198

6,996

1,370

Less: Expense from GAI operations

—

3,414

Less: Expense from sale of GAI assets

—

1,816

Adjusted Non-Interest Expense

49,950

49,565

35,569

194,953

139,777

Non-GAAP Reconciliation – Efficiency Ratio

Three Months Ended

Year Ended

(Dollars in Thousands)

12/31/2025

09/30/2025

12/31/2024

12/31/2025

12/31/2024

Adjusted Non-Interest Expense (from above)

49,950

49,565

35,569

194,953

139,777

Less: Intangible Amortization

2,582

2,693

438

10,148

2,032

Adjusted Non-Interest Expense excluding Intangible Amortization

47,368

46,872

35,131

184,805

137,745

Net Interest Income

78,680

75,725

51,032

294,132

190,591

Add: FTE Adjustment

1,576

1,273

1,172

5,437

5,494

Net Interest Income (FTE)

80,256

76,998

52,204

299,569

196,085

Adjusted Non-Interest Income (from above)

17,593

17,454

14,114

66,620

54,691

Total Adjusted Total Revenue

97,849

94,452

66,318

366,189

250,776

Efficiency Ratio

48.55

49.26

53.38

52.28

49.18

Adjusted Efficiency Ratio

48.41

49.63

52.97

50.47

54.93

Non-GAAP Reconciliation – Net Interest Margin

Three Months Ended

Year Ended

(Dollars in Thousands)

12/31/2025

09/30/2025

12/31/2024

12/31/2025

12/31/2024

Net Interest Income (FTE) from above

80,256

76,998

52,204

299,569

196,085

Less: Accretion of Discount on Acquired Loans

3,966

3,914

617

15,556

1,507

Adjusted Net Interest Income (FTE)

76,290

73,084

51,587

284,013

194,578

Average Earning Assets

7,738,298

7,538,784

5,878,988

7,453,650

5,722,010

Net Interest Margin (FTE)

4.13

4.06

3.54

4.02

3.43

Adjusted Net Interest Margin (FTE)

3.92

3.85

3.50

3.81

3.40

Non-GAAP Reconciliation – Return on Average Assets

Three Months Ended

Year Ended

(Dollars in Thousands)

12/31/2025

09/30/2025

12/31/2024

12/31/2025

12/31/2024

Adjusted Net Income

35,895

34,444

23,419

129,684

83,839

Average Assets

8,533,883

8,350,565

6,384,219

8,237,194

6,233,753

Return on Average Assets, as reported

1.67

1.68

1.45

1.37

1.34

Return on Average Assets, as adjusted

1.68

1.65

1.47

1.57

1.34

Non-GAAP Reconciliation – Return on Average Equity

Three Months Ended

Year Ended

(Dollars in Thousands)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Adjusted Net Income

35,895

34,444

23,419

129,684

83,839

Average Equity

1,142,357

1,079,359

732,698

1,050,990

685,862

Return on Average Equity, as reported

12.49

13.00

12.67

10.72

12.22

Return on Average Equity, as adjusted

12.57

12.76

12.79

12.34

12.22

Non-GAAP Reconciliation – Return on Tangible Equity

Three Months Ended

Year Ended

(Dollars in Thousands)

12/31/2025

9/30/2025

12/31/2024

12/31/2025

12/31/2024

Adjusted Net Income

35,895

34,444

23,419

129,684

83,839

Average Equity, as reported

1,142,357

1,079,359

732,698

1,050,990

685,862

Average Intangibles, as reported

410,150

415,666

183,274

395,603

184,664

Average Tangible Equity

732,207

663,693

549,424

655,387

501,198

Return on Tangible Equity, as reported

19.49

21.14

16.90

17.19

16.72

Return on Tangible Equity, as adjusted

19.61

20.76

17.05

19.79

16.73