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German American Bancorp, Inc. (GABC) Reports Strong Second Quarter Earnings

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JASPER, Ind., July 31, 2017 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (NASDAQ:GABC) reported that the Company has achieved another quarter of strong earnings during the second quarter of 2017, posting net income of $9.8 million, or $0.43 per share.  On a comparative per share basis, this level of quarterly earnings was a 2.4% increase over reported net income of $9.6 million, or $0.42 per share, in the first quarter of 2017, and was in-line with the second quarter 2016 net income of $9.8 million, or $0.43 per share.

On a year-to-date basis, German American's 2017 net income of $19.4 million, or $0.85 per share, was a 25% increase over the $14.9 million, or $0.68 per share, reported during the first half of 2016.  The Company's year-to-date 2016 reported net income was inclusive of the operations of River Valley Bancorp, following completion of the merger transaction on March 1, 2016, and reflected merger-related costs totaling approximately $4.1 million, or $2.6 million on an after-tax basis, representing approximately $0.12 per share.  All per share data in this release has been adjusted for and is reflective of the effect of the three-for-two stock split distributed on April 21, 2017.

Second quarter 2017 performance, relative to the same quarter 2016 results, was enhanced by an increase of $142,000 in net interest income, driven by approximately $71 million, or  4%, in end of period loan growth, measured at June 30, 2017 compared to June 30, 2016.  Loan growth during the current quarter, as measured from March 31, 2017 end of period loan balances, was approximately $48 million, or 10% on a linked quarter annualized basis.

In addition, the Company's second quarter 2017 non-interest income, exclusive of securities gains, increased by $710,000, or 10%, during the second quarter of 2017 as compared with the second quarter of 2016.  Items that showed improvement in non-interest income during the current quarter included increases of 32% in interchange fee income, primarily from increased customer debit card usage, 10% in trust and investment product fees, and 9% in both insurance revenues and from gains on loan sales.  Partially offsetting these improved areas of non-interest income was a $968,000 decrease in gains on securities sales, as the Company didn't experience any security sales in the second quarter of 2017.

Commenting on the Company's strong quarterly financial performance, Mark A. Schroeder, German American's Chairman & CEO, stated, "We're certainly pleased in our ability to post strong financial performance both during the current quarter and year-to-date.  We are particularly encouraged by the strong double-digit growth we experienced since the same quarter of last year within numerous categories of non-interest income and by the exceptionally strong level of loan growth during the current quarter.  The $48 million in second quarter loan growth, which represents approximately 10% annualized growth on linked quarter basis, positions us very well for enhanced levels of net interest income going forward."

The Company also announced the declaration of a regular quarterly cash dividend of $0.13 per share, which will be payable on August 20, 2017 to shareholders of record as of August 10, 2017. This level of regular quarterly cash dividend represents approximately an 8% increase, on a stock split adjusted basis, above the Company's quarterly cash dividend level paid in the prior year.

Balance Sheet Highlights

Total assets for the Company increased to $3.005 billion at June 30, 2017, representing an increase of $71.7 million, or 10% on an annualized basis, compared with March 31, 2017 and an increase of $89.0 million, or 3%, compared with June 30, 2016.

June 30, 2017 total loans increased $48.2 million, or 10% on an annualized basis, compared with March 31, 2017 and increased $70.9 million, or 4%, compared with June 30, 2016.  The increase during the second quarter of 2017 was largely related to an increase of approximately $21.6 million, or 7% on an annualized basis, of commercial real estate and commercial and industrial loans, a seasonal increase of $20.6 million, or 28% on an annualized basis, of agricultural loans and an increase of $5.9 million, or 6% on annualized basis of retail loans.

             
End of Period Loan Balances   6/30/2017   3/31/2017   6/30/2016
(dollars in thousands)            
             
Commercial & Industrial Loans   $ 467,754     $ 450,501     $ 463,501  
Commercial Real Estate Loans   870,100     865,717     840,215  
Agricultural Loans   313,254     292,615     285,353  
Consumer Loans   202,562     194,290     182,610  
Residential Mortgage Loans   181,477     183,806     192,603  
    $ 2,035,147     $ 1,986,929     $ 1,964,282  
             

Non-performing assets totaled $4.4 million at June 30, 2017 compared to $5.9 million of non-performing assets at March 31, 2017 and $9.7 million at June 30, 2016.  Non-performing assets represented 0.15% of total assets at June 30, 2017 compared to 0.20% of total assets at March 31, 2017 and 0.33% of total assets at June 30, 2016.  Non-performing loans totaled $3.2 million at June 30, 2017 compared to $5.7 million at March 31, 2017 and $9.3 million of non-performing loans at June 30, 2016.  Non-performing loans represented 0.16% of total loans at June 30, 2017 compared to 0.29% at March 31, 2017 and 0.48% at June 30, 2016.  The decline in non-performing assets during the second quarter of 2017 compared with March 31, 2017 levels was attributable to a single agricultural relationship that was more than 90 days past due and still on accrual status at March 31, 2017 that was brought current during the second quarter of 2017.

           
Non-performing Assets          
(dollars in thousands)          
  6/30/2017   3/31/2017   6/30/2016
Non-Accrual Loans $ 3,097     $ 4,510     $ 8,294  
Past Due Loans (90 days or more) 62     1,183     1,024  
  Total Non-Performing Loans 3,159     5,693     9,318  
Other Real Estate 1,289     208     416  
  Total Non-Performing Assets $ 4,448     $ 5,901     $ 9,734  
           
Restructured Loans $ 154     $ 28     $ 74  
           

The Company's allowance for loan losses totaled $15.3 million at June 30, 2017 compared to $15.2 million at March 31, 2017 and $15.3 million at June 30, 2016.  The allowance for loan losses represented 0.75% of period-end loans at June 30, 2017 compared with 0.76% of period-end loans at March 31, 2017 and 0.78% of period-end loans at June 30, 2016.  Under acquisition accounting treatment, loans acquired are recorded at fair value which includes a credit risk component, and therefore the allowance on loans acquired is not carried over from the seller.  The Company held a discount on acquired loans of $8.2 million as of June 30, 2017, $9.2 million at March 31, 2017 and $11.8 million at June 30, 2016.

Total deposits increased $36.8 million, or 6% on an annualized basis, as of June 30, 2017 compared with March 31, 2017 and increased $85.9 million, or 4%, compared with June 30, 2016.

             
End of Period Deposit Balances   6/30/2017   3/31/2017   6/30/2016
(dollars in thousands)            
             
Non-interest-bearing Demand Deposits   $ 557,535     $ 572,874     $ 506,498  
IB Demand, Savings, and MMDA Accounts   1,453,512     1,389,763     1,380,038  
Time Deposits < $100,000   203,923     206,171     236,127  
Time Deposits > $100,000   148,351     157,664     154,709  
    $ 2,363,321     $ 2,326,472     $ 2,277,372  
             

Results of Operations Highlights – Quarter ended June 30, 2017

Net income for the quarter ended June 30, 2017 totaled $9,839,000, or $0.43 per share, which represented an increase of approximately 2% on a per share basis compared with the first quarter 2017 net income of $9,556,000, or $0.42 per share, and was flat on a per share basis compared with the second quarter 2016 net income of $9,788,000, or $0.43 per share.

                                     
Summary Average Balance Sheet 
(Tax-equivalent basis / dollars in thousands) 
     Quarter Ended    Quarter Ended    Quarter Ended
    June 30, 2017   March 31, 2017   June 30, 2016
                                     
     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   $ 13,268     $ 27     0.79 %   $ 12,554     $ 27     0.88 %   $ 25,918     $ 20     0.30 %
Securities   743,354     5,887     3.17 %   731,871     5,834     3.19 %   723,222     5,168     2.86 %
Loans and Leases   2,011,518     22,780     4.54 %   1,974,846     22,440     4.60 %   1,935,246     22,791     4.73 %
Total Interest Earning Assets   $ 2,768,140     $ 28,694     4.15 %   $ 2,719,271     $ 28,301     4.20 %   $ 2,684,386     $ 27,979     4.19 %
                                     
Liabilities                                    
Demand Deposit Accounts   $ 560,763             $ 557,912             $ 502,070          
IB Demand, Savings, and                                    
  MMDA Accounts   $ 1,446,994     $ 939     0.26 %   $ 1,385,347     $ 738     0.22 %   $ 1,369,446     $ 672     0.20 %
Time Deposits   360,938     687     0.76 %   401,155     705     0.71 %   426,918     654     0.62 %
FHLB Advances and Other Borrowings   233,197     962     1.65 %   226,786     865     1.55 %   235,434     853     1.46 %
Total Interest-Bearing Liabilities   $ 2,041,129     $ 2,588     0.51 %   $ 2,013,288     $ 2,308     0.47 %   $ 2,031,798     $ 2,179     0.43 %
                                     
Cost of Funds           0.37 %           0.34 %           0.33 %
Net Interest Income       $ 26,106             $ 25,993             $ 25,800      
Net Interest Margin           3.78 %           3.86 %           3.86 %
                                     

During the quarter ended June 30, 2017, net interest income totaled $24,813,000 which remained relatively stable compared to prior periods as indicated by an increase of $88,000, or slightly under 1%, from the quarter ended March 31, 2017 net interest income of $24,725,000 and an increase of $142,000, or slightly under 1%, compared with the quarter ended June 30, 2016 net interest income of $24,671,000.

The tax equivalent net interest margin for the quarter ended June 30, 2017 was 3.78% compared with 3.86% in both the first quarter of 2017 and second quarter of 2016.  The decline in the stated net interest margin was largely attributable to a decline in the accretion of loan discounts on acquired loans and to a lesser degree on an increase in Company's cost of funds.  Accretion of loan discounts on acquired loans contributed approximately 10 basis points to the net interest margin on an annualized basis in the second quarter of 2017, 17 basis points in the first quarter of 2017, and 23 basis points in the second quarter of 2016.  The Company's cost of funds increased approximately 3 basis points in the second quarter of 2017 compared with the first quarter of 2017 and 4 basis points compared with the second quarter of 2016.  The higher cost of funds was largely attributable to an increase in short-term market interest rates over the past several quarters.

During the quarter ended June 30, 2017, the Company recorded a provision for loan loss of $350,000 compared with a provision for loan loss of $500,000 during the first quarter of 2017 and a provision of $350,000 in the second quarter of 2016.  The provision during all periods was done in accordance with the Company's standard methodology for determining the adequacy of its allowance for loan loss.

During the quarter ended June 30, 2017, non-interest income totaled $7,797,000, a decline of $391,000, or 5%, compared with the quarter ended March 31, 2017, and a decline of $258,000, or 3%, compared with the second quarter of 2016.

             
    Quarter Ended   Quarter Ended   Quarter Ended
Non-interest Income   6/30/2017   3/31/2017   6/30/2016
(dollars in thousands)            
             
Trust and Investment Product Fees   $ 1,350     $ 1,243     $ 1,223  
Service Charges on Deposit Accounts   1,478     1,484     1,534  
Insurance Revenues   1,744     2,640     1,605  
Company Owned Life Insurance   480     254     247  
Interchange Fee Income   1,156     1,023     873  
Other Operating Income   630     857     722  
  Subtotal   6,838     7,501     6,204  
Net Gains on Loans   959     687     883  
Net Gains on Securities           968  
Total Non-interest Income   $ 7,797     $ 8,188     $ 8,055  
             

Insurance revenues declined $896,000, or 34%, during the quarter ended June 30, 2017, compared with the first quarter of 2017 and increased $139,000, or 9%, compared with the second quarter of 2016.  The decline during the second quarter of 2017 compared with the first quarter of 2017 was due to contingency revenue.  Contingency revenue during the first quarter of 2017 totaled $992,000 compared with no contingency revenue during the second quarter of 2017.  The fluctuation in contingency revenue is a normal course of business variance and is reflective of claims and loss experience with insurance carriers that the Company represents through its property and casualty insurance agency.  Typically, the majority of contingency revenue is recognized during the first quarter of the year.

Company owned life insurance revenue increased $226,000, or 89%, during the quarter ended June 30, 2017, compared with the first quarter of 2017 and increased $233,000, or 94%, compared with the second quarter of 2016.  The increase was largely related to death benefits received from life insurance policies during the quarter ended June 30, 2017.

Interchange fee income increased $133,000, or 13%, during the second quarter of 2017 compared with the first quarter of 2017 and $283,000, or 32%, compared with the second quarter of 2017.  The increase was largely attributable to increased card utilization by customers.

Other operating income decreased $227,000, or 26%, during the quarter ended June 30, 2017 compared with the first quarter of 2017 and decreased $92,000, or 13%, compared with the second quarter of 2016.  The decline in the second quarter of 2017 compared with both comparative periods was largely attributable to decreased fees associated with swap transactions with loan customers.

Net gains on sales of loans increased $272,000, or 40%, during the second quarter of 2017 compared with the first quarter of 2017 and increased $76,000, or 9%, compared with the second quarter of 2016.  The increase in the gain on sales of loans during the second quarter of 2017 compared with both comparative periods was primarily due to improved pricing on loans sold and those loans held for sale.  Loan sales totaled $29.8 million during the second quarter of 2017, compared with $32.3 million during the first quarter of 2017 and $36.8 million during the second quarter of 2016.

The Company realized no gains on sales of securities during the second quarter of 2017 or the first quarter of 2017 compared with a net gain on the sale of securities of $968,000 in the second quarter of 2016.

During the quarter ended June 30, 2017, non-interest expense totaled $18,996,000, a decline of $40,000, or less than 1%, compared with the quarter ended March 31, 2017, and an increase of $657,000, or 4%, compared with the second quarter of 2016.

             
    Quarter Ended   Quarter Ended   Quarter Ended
Non-interest Expense   6/30/2017   3/31/2017   6/30/2016
(dollars in thousands)            
             
Salaries and Employee Benefits   $ 11,460     $ 11,444     $ 10,184  
Occupancy, Furniture and Equipment Expense   2,224     2,182     2,218  
FDIC Premiums   232     239     339  
Data Processing Fees   1,044     1,011     1,181  
Professional Fees   913     803     780  
Advertising and Promotion   630     778     629  
Intangible Amortization   242     253     312  
Other Operating Expenses   2,251     2,326     2,696  
Total Non-interest Expense   $ 18,996     $ 19,036     $ 18,339  
             

Salaries and benefits increased $16,000, or less than 1%, during the quarter ended June 30, 2017 compared with the first quarter of quarter of 2017 and increased $1,276,000, or 13%, compared with the second quarter of 2016.  The increase in salaries and benefits during the second quarter of 2017 compared with the second quarter of 2016 was primarily attributable to an increased number of full-time equivalent employees and higher levels of employee benefit costs including incentive compensation plan costs and health insurance costs.

Professional fees increased $110,000, or 14%, during the quarter ended June 30, 2017 compared with the first quarter of quarter of 2017 and increased $133,000, or 17%, compared with the second quarter of 2016.  The increase in both comparative periods was largely attributable to costs associated with the three-for-two stock split completed during the second quarter of 2017.

Advertising and promotion decreased $148,000, or 19%, during the quarter ended June 30, 2017 compared with the first quarter of 2017 and remained virtually unchanged compared with the second quarter of 2016.  The decrease in advertising and promotion was largely related to the timing of charitable contribution activity.

Other operating expenses decreased $75,000, or 3%, during the quarter ended June 30, 2017 compared with the first quarter of 2017 and decreased $445,000, or 17% compared with the second quarter of 2016.  The decline compared to the second quarter of 2016 was primarily attributable to various card and deposit account expenses which were higher in 2016 related to the River Valley transaction and to deposit gathering strategic initiatives.

About German American

German American Bancorp, Inc., is a NASDAQ-traded (symbol: GABC) bank holding company based in Jasper, Indiana.  German American, through its banking subsidiary German American Bancorp, operates 52 banking offices in 19 contiguous southern Indiana counties and one northern Kentucky county. The Company also owns an investment brokerage subsidiary (German American Investment Services, Inc.) and a full line property and casualty insurance agency (German American Insurance, 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.  Readers are cautioned that, by their nature, forward-looking statements are based on assumptions and are subject to risks, uncertainties, and other factors. 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 the unknown future direction of interest rates and the timing and magnitude of any changes in interest rates; 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; potential deterioration in general economic conditions, either nationally or locally, resulting in, among other things, credit quality deterioration; capital management activities, including possible future sales of new securities, or possible repurchases or redemptions by the Company of outstanding debt or equity securities; risks of expansion through acquisitions and mergers, such as unexpected credit quality problems of the acquired loans or other assets, unexpected attrition of the customer base of the acquired institution or branches, and difficulties in integration of the acquired operations; factors driving impairment charges 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 the Company's banking subsidiary; actions of the regulatory authorities under the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Federal Deposit Insurance Act and other possible legislative and regulatory actions and reforms; the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends; and other risk factors expressly identified in the Company's filings with the United States Securities and Exchange Commission. 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 the Company. 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
           
  June 30, 2017   March 31, 2017   June 30, 2016
ASSETS          
  Cash and Due from Banks $ 36,833     $ 30,151     $ 36,027  
  Short-term Investments 7,204     7,288     18,113  
  Interest-bearing Time Deposits with Banks         1,744  
  Investment Securities 740,578     726,352     719,916  
           
  Loans Held-for-Sale 9,844     6,856     5,135  
           
  Loans, Net of Unearned Income 2,031,743     1,983,572     1,960,555  
  Allowance for Loan Losses (15,320 )   (15,166 )   (15,304 )
  Net Loans 2,016,423     1,968,406     1,945,251  
           
  Stock in FHLB and Other Restricted Stock 13,048     13,048     13,048  
  Premises and Equipment 49,249     49,718     47,669  
  Goodwill and Other Intangible Assets 56,607     56,849     57,048  
  Other Assets 75,017     74,476     71,860  
  TOTAL ASSETS $ 3,004,803     $ 2,933,144     $ 2,915,811  
           
LIABILITIES          
  Non-interest-bearing Demand Deposits $ 557,535     $ 572,874     $ 506,498  
  Interest-bearing Demand, Savings, and Money Market Accounts 1,453,512     1,389,763     1,380,038  
  Time Deposits 352,274     363,835     390,836  
  Total Deposits 2,363,321     2,326,472     2,277,372  
           
  Borrowings 263,469     241,358     278,214  
  Other Liabilities 23,059     24,098     27,870  
  TOTAL LIABILITIES 2,649,849     2,591,928     2,583,456  
           
SHAREHOLDERS' EQUITY          
  Common Stock and Surplus 187,613     187,300     186,251  
  Retained Earnings 163,181     156,322     134,909  
  Accumulated Other Comprehensive Income (Loss) 4,160     (2,406 )   11,195  
  TOTAL SHAREHOLDERS' EQUITY 354,954     341,216     332,355  
           
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 3,004,803     $ 2,933,144     $ 2,915,811  
           
END OF PERIOD SHARES OUTSTANDING (1) 22,929,627     22,929,417     22,900,395  
           
TANGIBLE BOOK VALUE PER SHARE (1) (2) $ 13.01     $ 12.40     $ 12.02  
           
(1) As Adjusted for the 3 for 2 Stock Split distributed on April 21, 2017.
(2) 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   Six Months Ended
    June 30, 2017   March 31, 2017   June 30, 2016   June 30, 2017   June 30, 2016
INTEREST INCOME                  
  Interest and Fees on Loans $ 22,602     $ 22,262     $ 22,670     $ 44,864     $ 41,334  
  Interest on Short-term Investments and Time Deposits 27     27     20     54     37  
  Interest and Dividends on Investment Securities 4,772     4,744     4,160     9,516     8,159  
  TOTAL INTEREST INCOME 27,401     27,033     26,850     54,434     49,530  
                     
INTEREST EXPENSE                  
  Interest on Deposits 1,626     1,443     1,326     3,069     2,481  
  Interest on Borrowings 962     865     853     1,827     1,594  
  TOTAL INTEREST EXPENSE 2,588     2,308     2,179     4,896     4,075  
                     
  NET INTEREST INCOME 24,813     24,725     24,671     49,538     45,455  
  Provision for Loan Losses 350     500     350     850     1,200  
  NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 24,463     24,225     24,321     48,688     44,255  
                     
NON-INTEREST INCOME                  
  Net Gain on Sales of Loans 959     687     883     1,646     1,603  
  Net Gain on Securities         968         968  
  Other Non-interest Income 6,838     7,501     6,204     14,339     12,701  
  TOTAL NON-INTEREST INCOME 7,797     8,188     8,055     15,985     15,272  
                     
NON-INTEREST EXPENSE                  
  Salaries and Benefits 11,460     11,444     10,184     22,904     21,785  
  Other Non-interest Expenses 7,536     7,592     8,155     15,128     16,794  
  TOTAL NON-INTEREST EXPENSE 18,996     19,036     18,339     38,032     38,579  
                     
  Income before Income Taxes 13,264     13,377     14,037     26,641     20,948  
  Income Tax Expense 3,425     3,821     4,249     7,246     6,014  
                     
NET INCOME $ 9,839     $ 9,556     $ 9,788     $ 19,395     $ 14,934  
                     
BASIC EARNINGS PER SHARE (1) $ 0.43     $ 0.42     $ 0.43     $ 0.85     $ 0.68  
DILUTED EARNINGS PER SHARE (1) $ 0.43     $ 0.42     $ 0.43     $ 0.85     $ 0.68  
                     
WEIGHTED AVERAGE SHARES OUTSTANDING (1) 22,929,426     22,908,648     22,884,029     22,919,094     21,885,656  
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING (1) 22,929,426     22,908,648     22,885,829     22,919,094     21,889,613  
                     
(1 ) As Adjusted for the 3 for 2 Stock Split distributed on April 21, 2017.                  


 
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
                     
    Three Months Ended   Six Months Ended
    June 30,   March 31,   June 30,   June 30,   June 30,
    2017   2017   2016   2017   2016
EARNINGS PERFORMANCE RATIOS                  
  Annualized Return on Average Assets 1.32 %   1.31 %   1.36 %   1.32 %   1.10 %
  Annualized Return on Average Equity 11.34 %   11.39 %   12.02 %   11.36 %   9.79 %
  Net Interest Margin 3.78 %   3.86 %   3.86 %   3.82 %   3.75 %
  Efficiency Ratio (1) 56.03 %   55.69 %   54.17 %   55.86 %   61.36 %
  Net Overhead Expense to Average Earning Assets (2) 1.62 %   1.60 %   1.53 %   1.61 %   1.83 %
                     
ASSET QUALITY RATIOS                  
  Annualized Net Charge-offs to Average Loans 0.04 %   0.03 %   0.04 %   0.03 %   0.04 %
  Allowance for Loan Losses to Period End Loans 0.75 %   0.76 %   0.78 %        
  Non-performing Assets to Period End Assets 0.15 %   0.20 %   0.33 %        
  Non-performing Loans to Period End Loans 0.16 %   0.29 %   0.48 %        
  Loans 30-89 Days Past Due to Period End Loans 0.26 %   0.37 %   0.45 %        
                     
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA                  
  Average Assets $ 2,970,745     $ 2,926,095     $ 2,885,165     $ 2,948,543     $ 2,723,932  
  Average Earning Assets $ 2,768,140     $ 2,719,271     $ 2,684,386     $ 2,743,840     $ 2,547,791  
  Average Total Loans $ 2,011,518     $ 1,974,846     $ 1,935,246     $ 1,993,283     $ 1,814,944  
  Average Demand Deposits $ 560,763     $ 557,912     $ 502,070     $ 559,345     $ 484,793  
  Average Interest Bearing Liabilities $ 2,041,129     $ 2,013,288     $ 2,031,798     $ 2,027,285     $ 1,909,308  
  Average Equity $ 347,035     $ 335,586     $ 325,754     $ 341,342     $ 305,000  
                     
  Period End Non-performing Assets (3) $ 4,448     $ 5,901     $ 9,734          
  Period End Non-performing Loans (4) $ 3,159     $ 5,693     $ 9,318          
  Period End Loans 30-89 Days Past Due (5) $ 5,238     $ 7,337     $ 8,764          
                     
  Tax Equivalent Net Interest Income $ 26,106     $ 25,993     $ 25,800     $ 52,099     $ 47,602  
  Net Charge-offs during Period $ 196     $ 142     $ 207     $ 338     $ 334  
                     
                     
(1 ) Efficiency Ratio is defined as Non-interest Expense divided by the sum of Net Interest Income, on a tax equivalent basis, and Non-interest Income.        
(2 ) Net Overhead Expense is defined as Total Non-interest Expense less Total Non-interest Income.        
(3 ) Non-performing assets are defined as Non-accrual Loans, Loans Past Due 90 days or more, Restructured Loans, and Other Real Estate Owned.        
(4 ) Non-performing loans are defined as Non-accrual Loans, Loans Past Due 90 days or more, and Restructured Loans.        
(5 ) Loans 30-89 days past due and still accruing.                  

 

For additional information, contact:
Mark A Schroeder, Chairman & Chief Executive Officer of German American Bancorp, Inc.
Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314

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