German American Bancorp reported first-quarter 2026 net income of $33.2 million, or $0.88 a share, down from $35.7 million, or $0.95 a share, in the fourth quarter of 2025, but up sharply from $10.5 million, or $0.30 a share, a year earlier.
Return on average assets was 1.58% in the quarter, compared with 1.67% in the prior quarter and 0.55% in the first quarter of 2025. Return on average tangible common equity was 17.08%, versus 19.5% in the fourth quarter and 7.10% a year ago.
Net interest margin widened to 4.26% from 4.13% in the fourth quarter, an improvement of 13 basis points. The company said the gain was driven mostly by lower funding costs.
Total assets were $8.382 billion at March 31, 2026, down $6.3 million from Dec. 31, 2025 and down $37.2 million from March 31, 2025.
Loans ended the quarter at $5.859 billion, down $25.8 million from year-end 2025, but up $203.7 million from a year earlier. The quarterly decline came as agricultural loans fell $22.0 million, commercial and industrial loans fell $15.3 million, and residential mortgage loans slipped $6.7 million. Those declines were partly offset by a $9.9 million increase in commercial real estate loans and a $1.6 million rise in retail loans.
The allowance for credit losses rose to $78.5 million from $77.7 million at year-end and $75.2 million a year earlier. As a share of loans, the allowance was 1.34%, compared with 1.32% in the prior quarter and 1.33% a year ago.
Non-performing assets were $29.6 million, essentially unchanged from $29.5 million at Dec. 31, 2025, but up from $18.6 million a year earlier. As a percentage of total assets, non-performing assets held at 0.35%, unchanged from the prior quarter and up from 0.22% a year ago. Non-performing loans were 0.51% of total loans, versus 0.50% in the prior quarter and 0.33% a year earlier.
Deposits ended the quarter at $6.981 billion, down $8.8 million from Dec. 31, 2025 and down $117.0 million from March 31, 2025. Non-interest-bearing deposits were $1.927 billion, representing 28% of total deposits, the same share as in the prior quarter and up from 27% a year ago.
Interest-bearing demand, savings and money market balances were $3.769 billion, up slightly from $3.755 billion at year-end. Time deposits under $100,000 fell to $459.4 million from $475.9 million, while time deposits over $100,000 rose to $826.2 million from $813.6 million.
Non-interest expense climbed to $52.4 million, up $2.4 million, or 5%, from the fourth quarter. The efficiency ratio was 51.2%, compared with a lower level in the prior quarter.
Tangible common equity rose to 9.6% from 9.2% at Dec. 31, 2025. Tangible book value per share increased 2% quarter over quarter to $20.44.
The company declared a quarterly dividend of $0.31 a share, up 7% from the 2025 rate, marking the 14th consecutive annual increase. Today the company's shares have moved -0.18% to a price of $43.53. Check out the company's full 8-K submission here.
