GERMAN AMERICAN BANCORP, INC.GABC
GERMAN AMERICAN BANCORP, INC. Debt Disclosure
FHLB Advances and Other Borrowings
(1) “3-Month SOFR” refers to the three-month CME Term SOFR, which became effective following the first London banking day after June 30, 2023, plus the applicable spread adjustment of 0.26161% percent.
The Company’s funding sources include Federal Home Loan Bank advances, borrowings from other third party correspondent financial institutions, issuance and sale of subordinated debt and other capital securities, and repurchase agreements. Information regarding each of these types of borrowings or other indebtedness is as follows:
| December 31, | ||||||||||||||||||||||||||
| 2025 | 2024 | |||||||||||||||||||||||||
| Principal | Unamortized Discount and Debt Issuance Costs | Principal | Unamortized Discount and Debt Issuance Costs | |||||||||||||||||||||||
| Long-term Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities | $ | 100,000 | $ | — | $ | 75,000 | $ | — | ||||||||||||||||||
| Junior Subordinated Debentures assumed from American Community Bancorp, Inc. | 8,248 | (1,423) | 8,248 | (1,573) | ||||||||||||||||||||||
| Junior Subordinated Debentures assumed from River Valley Bancorp, Inc. | 7,217 | (766) | 7,217 | (871) | ||||||||||||||||||||||
| Junior Subordinated Debentures assumed from Citizens First Corporation | 5,155 | (722) | 5,155 | (787) | ||||||||||||||||||||||
| Junior Subordinated Debentures assumed from Citizens Union Bancorp of Shelbyville, Inc. | 20,600 | (1,615) | 20,600 | (1,751) | ||||||||||||||||||||||
| Subordinated Debentures | — | — | 40,000 | (372) | ||||||||||||||||||||||
| Finance Lease Obligation | 2,137 | — | 2,403 | — | ||||||||||||||||||||||
| Long-term Borrowings | 143,357 | (4,526) | 158,623 | (5,354) | ||||||||||||||||||||||
| Overnight Variable Rate Advances from Federal Home Loan Bank collateralized by qualifying mortgages, investment securities, and mortgage-backed securities | — | — | — | — | ||||||||||||||||||||||
| Federal Funds Purchased | — | — | — | — | ||||||||||||||||||||||
| Repurchase Agreements | 43,852 | — | 56,862 | — | ||||||||||||||||||||||
| Short-term Borrowings | 43,852 | — | 56,862 | — | ||||||||||||||||||||||
| Total Borrowings | $ | 187,209 | $ | (4,526) | $ | 215,485 | $ | (5,354) | ||||||||||||||||||
Repurchase agreements, which are classified as secured borrowings, generally mature within one day of the transaction date. Repurchase agreements are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the value of the underlying securities.
| 2025 | 2024 | |||||||||||||
| Average Daily Balance During the Year | $ | 37,573 | $ | 47,187 | ||||||||||
| Average Interest Rate During the Year | 0.94 | % | 1.50 | % | ||||||||||
| Maximum Month-end Balance During the Year | $ | 47,488 | $ | 68,228 | ||||||||||
| Weighted Average Interest Rate at Year-end | 0.81 | % | 1.27 | % | ||||||||||
At December 31, 2025, interest rates on long-term FHLB Advances ranged from 3.43% to 3.99% with a weighted average rate of 3.67%. At December 31, 2024, interest rates on long-term FHLB Advances ranged from 3.54% to 3.99% with a weighted average rate of 3.75%. At December 31, 2025 and 2024, the Company had no advances containing options whereby the FHLB may convert a fixed rate advance to an adjustable rate advance.
At December 31, 2024, the Company had outstanding $39,628, in aggregate principal amount, a 4.50% Fixed-to-Floating Rate Subordinated Notes due 2029 (the “2029 Notes”). The 2029 Notes were redeemed in their entirety on December 30, 2025, at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest. Prior to June 30, 2024, the interest rate on the 2029 Notes was fixed at an annual rate of 4.50%, payable semi-annually in arrears. From and including June 30, 2024 to but excluding the redemption date, the interest rate was reset quarterly to a rate per annum equal to the then-current three-month CME Term SOFR, plus the applicable spread adjustment of 0.26161% percent, plus 2.68% percent.
On September 15, 2025, the Company redeemed its 5.0% Fixed-to-Floating Rate Subordinated Notes due 2030 (the “2030 Notes”), outstanding in the aggregate principal amount of $24.3 million, at a redemption price equal to 100% of the principal
amount, plus accrued and unpaid interest. The 2030 Notes were acquired through the acquisition of Heartland BancCorp in February 2025.
While portions of the 2029 Notes and 2030 Notes qualified as Tier 2 capital for regulatory capital purposes, the redemptions did not have a material impact on the capital ratios of the Company or the Bank.
At December 31, 2025, the parent company had a $15 million line of credit with U.S. Bank National Association, which had no outstanding balance. The line of credit matures September 23, 2026. Interest on the line of credit is based upon one-month Term SOFR plus 2.10%.
At December 31, 2025, scheduled principal payments on long-term borrowings, excluding the capitalized lease obligation and acquired subordinated debentures (which are discussed below) are as follows:
| 2026 | $ | — | ||||||
| 2027 | — | |||||||
| 2028 | — | |||||||
| 2029 | 75,000 | |||||||
| 2030 | 25,000 | |||||||
| Thereafter | — | |||||||
| Total | $ | 100,000 | ||||||
The Company assumed the obligations of junior subordinated debentures through the acquisitions of American Community Bancorp, Inc., River Valley Bancorp, Citizens First Corporation and Citizens Union Bancorp of Shelbyville, Inc. The junior subordinated debentures were issued to ACB Capital Trust I, ACB Capital Trust II, RIVR Statutory Trust I, Citizens First Statutory Trust I, CUB Capital Trust I and CUB Capital Trust II. The trusts are wholly owned by the Company. In accordance with accounting guidelines, the trusts are not consolidated with the Company’s financials, but rather the subordinated debentures are shown as borrowings. The Company guarantees payment of distributions on the trust preferred securities issued by the various trusts. Interest is payable on a quarterly basis. These securities qualify as Tier 1 capital (with certain limitations) for regulatory purposes. $35,733 of the junior subordinated debentures were treated as Tier 1 capital for regulatory capital purposes as of December 31, 2025. $35,281 of the junior subordinated debentures were treated as Tier 1 capital for regulatory capital purposes as of December 31, 2024. As a result of the acquisitions, these liabilities were recorded at fair value at the acquisition date with the discount amortizing into interest expense over the life of the liability, ultimately accreting to the issuance amount disclosed below.
The following table summarizes the terms of each issuance:
| Date of Issuance | Issuance Amount | Carrying Amount at December 31, 2025 | Variable Rate (1) | Rate as of December 31, 2025 | Rate as of December 31, 2024 | Maturity Date | ||||||||||||||||||||||||||||||||||||||
| ACB Trust I | 5/6/2005 | $ | 5,155 | $ | 4,289 | 3-Month SOFR + 2.15% | 6.08 | % | 6.74 | % | May 2035 | |||||||||||||||||||||||||||||||||
| ACB Trust II | 7/15/2005 | 3,093 | 2,536 | 3-Month SOFR + 1.85% | 5.99 | % | 6.63 | % | July 2035 | |||||||||||||||||||||||||||||||||||
| RIVR Statutory Trust I | 3/26/2003 | 7,217 | 6,451 | 3-Month SOFR + 3.15% | 7.10 | % | 7.74 | % | March 2033 | |||||||||||||||||||||||||||||||||||
| Citizens First Statutory Trust I | 10/16/2006 | 5,155 | 4,433 | 3-Month SOFR +1.65% | 5.90 | % | 6.50 | % | January 2037 | |||||||||||||||||||||||||||||||||||
| CUB Capital Trust I | 10/21/2004 | 10,310 | 9,741 | 3-Month SOFR +2.00% | 6.14 | % | 6.78 | % | November 2034 | |||||||||||||||||||||||||||||||||||
| CUB Capital Trust II | 8/17/2005 | 10,310 | 9,244 | 3-Month SOFR +1.50% | 5.67 | % | 6.42 | % | October 2035 | |||||||||||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Mar 1, 2019 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 9, 2017 | |
| 2015 | Mar 9, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.