GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

1 of 13

July 26, 2010	GERMAN AMERICAN BANCORP, INC. (GABC)
	REPORTS RECORD SECOND QUARTER AND 2010
	YEAR-TO-DATE EARNINGS

Summary

German American Bancorp reported today that it achieved a record level of 2010 earnings for the second quarter and year-to-date through June 30th.  The Company’s second quarter net income totaled $3,408,000, or $0.31 per share, representing the highest level of quarterly earnings in the Company’s history.  This record earnings performance was an increase of approximately 23%, from the $2,764,000, or $0.25 per share, recorded during the same quarter last year.  On a year-to-date basis, 2010 earnings were also a record, increasing to $6,659,000, or $0.60 per share, as compared to $5,706,000, or $0.52 per share for the first six months of 2009.  The improvement in year-to-date earnings represented an increase of approximately 17%.

The record quarterly earnings performance was primarily reflective of an improvement in the level of the Company’s core operating results, and, to a lesser extent, the previously reported purchase of two branch bank locations in the Evansville (Indiana) banking market in May of this year.  As compared to the same quarter in 2009, current quarter net income was enhanced by an increase in the Company’s net interest income of approximately $800,000.  This improvement in net interest income was directly attributable to over $100 million or 9% growth in the Company’s average earning assets, as compared to the second quarter of the prior year, with over three-fourths of the growth in average earning assets coming from the Company’s existing banking markets and approximately one-fourth of the growth related to the branch purchase.

Mark A. Schroeder, Chairman & CEO of German American, commenting on the second quarter and year-to-date record results stated, “We are very pleased that our trend, over the course of the past several years, of strong earnings, solid loan quality, and the maintenance of a well-capitalized regulatory capital position has culminated in the achievement of this highest level of first half and second quarter earnings performance ever experienced in the history of our Company.  Further, our second quarter net income for the current year increased by approximately 5% over the first quarter results.  As I have previously stated, our exceptional performance throughout the recent economic downturn is a testament to our staff, our clients, and the economic viability of our Southern Indiana market area.”

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

2 of 13

Schroeder continued, “We will strive to build upon this record performance level as we continue to grow our new market presence in Evansville, while also continuing to enhance our existing market position in other Southern Indiana markets.  German American is clearly the provider of choice throughout our market area in terms of our full offering of financial products and services within banking, insurance, and investments.”

The Company also announced that its Board of Directors declared its regular quarterly cash dividend of $0.14 per share which will be payable on August 20, 2010 to shareholders of record as of August 10, 2010.

Balance Sheet Highlights

End-of-period investment securities increased approximately $38 million or 57% on an annualized basis during the second quarter of 2010 compared with the period ended March 31, 2010.  The increase was largely attributable to an increase in the Company’s core deposit base.

End-of-period loans outstanding increased approximately $47 million or 22% on an annualized basis during the second quarter of 2010 compared with the period ended March 31, 2010.  The overall increase in the loan portfolio was largely driven by the May 2010 acquisition of two branch office locations in the Evansville (Indiana) banking market.  The Company acquired approximately $44 million in loans as a part of the transaction.

								Annualized
End of Period Loan Balances	06/30/10		03/31/2010		$ Change			% Change
Commercial & Industrial Loans	$	226,876	$	197,490	$	29,386			60	%
Commercial Real Estate Loans		340,229		328,565		11,664			14	%
Agricultural Loans		150,462		144,396		6,066			17	%
Consumer Loans		115,553		113,640		1,913			7	%
Residential Mortgage Loans		81,547		83,550		(2,003	)		-10	%
	$	914,667	$	867,641	$	47,026			22	%

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

3 of 13

Non-performing assets totaled $10.6 million at June 30, 2010 compared to $11.0 million of non-performing assets at March 31, 2010.  Non-performing assets represented 0.79% of total assets at June 30, 2010 compared to 0.87% at March 31, 2010.  Non-performing loans totaled $8.8 million at June 30, 2010 compared to $9.3 million of non-performing loans at March 31, 2010.  Non-performing loans represented 0.96% of total outstanding loans at June 30, 2010 compared with 1.08% of total loans outstanding at March 31, 2010.  The decline was the result of the Company’s continued aggressive collection efforts for non-performing credit relationships.

The Company’s allowance for loan losses totaled $10.8 million at June 30, 2010.  This level of allowance represents a modest increase of $100,000 or 1% from March 31, 2010.  The allowance for loan losses represented 1.18% of period-end loans at June 30, 2010 compared with 1.24% at March 31, 2010.  The modest decline in allowance for loan loss as a percentage of total loans was due to the loans acquired as a part of the branch acquisition that were acquired at fair value which included a credit risk component.  The allowance for loan losses represented 123% of period-end non-performing loans at June 30, 2010 and 115% of period-end non-performing loans at March 31, 2010.

End-of-period deposits increased approximately $77 million or 32% on an annualized basis during the second quarter of 2010 compared with the period ended March 31, 2010.  The increase was partially attributable to the previously-discussed branch acquisition with approximately $51 million of deposits acquired in early May 2010 as a part of the transaction, of which a majority were core deposits.

							Annualized
End of Period Deposit Balances	06/30/10		03/31/10		$ Change		% Change
Non-interest-bearing Demand Deposits	$	166,922	$	158,163	$	8,759		22	%
Interest-bearing Demand, Savings, & Money Market Accounts		522,438		473,278		49,160		42	%
Time Deposits < $100,000		274,603		261,095		13,508		21	%
Time Deposits of $100,000 or more & Brokered Deposits		85,893		80,459		5,434		27	%
	$	1,049,856	$	972,995	$	76,861		32	%

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

4 of 13

Results of Operations Highlights

Quarter ended June 30, 2010 compared to quarter ended June 30, 2009

Net income for the quarter ended June 30, 2010 totaled $3,408,000, an increase of $644,000 or 23% from the quarter ended June 30, 2009 net income of $2,764,000.

Summary Average Balance Sheet

(Tax-equivalent basis / $ in thousands)

	Quarter Ended June 30, 2010							Quarter Ended June 30, 2009
	Principal		Income/		Yield/			Principal		Income/		Yield/
	Balance		Expense		Rate			Balance		Expense		Rate
Assets
Federal Funds Sold and Other Short-term Investments	$	52,008	$	27		0.21	%	$	30,495	$	22		0.29	%
Securities		274,969		2,852		4.15	%		213,397		2,570		4.82	%
Loans and Leases		901,856		13,264		5.90	%		882,554		13,528		6.15	%
Total Interest-Earning Assets	$	1,228,833	$	16,143		5.27	%	$	1,126,446	$	16,120		5.73	%
Liabilities
Demand Deposit Accounts	$	163,227						$	148,214
Interest-bearing Demand, Savings, and Money Market Accounts	$	512,680	$	461		0.36	%	$	458,394	$	819		0.72	%
Time Deposits		353,577		2,225		2.52	%		337,352		2,516		2.99	%
FHLB Advances and Other Borrowings		154,884		1,340		3.47	%		139,959		1,471		4.22	%
Total Interest-Bearing Liabilities	$	1,021,141	$	4,026		1.58	%	$	935,705	$	4,806		2.06	%
Cost of Funds						1.32	%						1.71	%
Net Interest Income			$	12,117						$	11,314
Net Interest Margin						3.95	%						4.02	%

During the quarter ended June 30, 2010, net interest income totaled $11,915,000 representing an increase of $798,000 or 7% from the second quarter of 2009.  The tax equivalent net interest margin for the second quarter of 2010 was 3.95% compared to 4.02% in the second quarter of 2009.  The increased net interest income was largely the result of a higher level of earning assets driven by growth in the Company’s core deposit base, both internally and as augmented by the deposits acquired in the branch acquisition.

The provision for loan loss totaled $1,000,000 during both the quarter ended June 30, 2010, and the quarter ended June 30, 2009.  During the second quarter of 2010, the provision for loan loss represented approximately 44 basis points of average loans while net charge-offs represented approximately 40 basis points of average loans.

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

5 of 13

 
During the quarter ended June 30, 2010, non-interest income declined approximately 1% from the second quarter of 2009.

	Qtr. Ended		Qtr Ended
Non-interest Income	06/30/10		06/30/09			$ Change			% Change
Trust and Investment Product Fees	$	395	$	457		$	(62	)		-14	%
Service Charges on Deposit Accounts		1,075		1,080			(5	)		0	%
Insurance Revenues		1,083		1,290			(207	)		-16	%
Company Owned Life Insurance		186		200			(14	)		-7	%
Other Operating Income		553		368			185			50	%
Subtotal		3,292		3,395			(103	)		-3	%
Net Gains on Sales of Loans		499		461			38			8	%
Net Gain (Loss) on Securities		—		(34	)		34			n/m
Total Non-interest Income	$	3,791	$	3,822		$	(31	)		-1	%

Trust and investment product fees declined by 14% during the second quarter of 2010 compared with the second quarter of 2009 due primarily to lower retail brokerage revenues.  Insurance revenues decreased 16% during the quarter ended June 30, 2010, compared with 2009 due in part to a change in the accounting method for direct bill customers during the second quarter of 2010 to better reconcile with our agency management system.  Other operating income increased $185,000 or 50% during the second quarter of 2010 compared with the same period of 2009 due primarily to a higher level of write-downs on other real estate owned properties in the second quarter of 2009 compared with the same period of 2010.

During the quarter ended June 30, 2010, non-interest expense declined approximately 3% compared with the quarter ended June 30, 2009.

	Qtr. Ended		Qtr. Ended
Non-interest Expense	06/30/10		06/30/09		$ Change			% Change
Salaries and Employee Benefits	$	5,288	$	5,515	$	(227	)		-4	%
Occupancy, Furniture and Equipment Expense		1,435		1,470		(35	)		-2	%
FDIC Premiums		336		885		(549	)		-62	%
Data Processing Fees		365		344		21			6	%
Professional Fees		524		405		119			29	%
Advertising and Promotion		273		199		74			37	%
Intangible Amortization		247		221		26			12	%
Other Operating Expenses		1,434		1,194		240			20	%
Total Non-interest Expense	$	9,902	$	10,233	$	(331	)		-3	%

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

6 of 13

Salaries and benefits expense declined approximately 4% during the second quarter of 2010 compared with the second quarter of 2009.  The decrease was primarily the result of lower costs associated with the Company’s partially self-insured health insurance plan.

The Company’s FDIC deposit insurance assessments decreased $549,000, or 62%, during the second quarter of 2010 compared with the second quarter of 2009.  This decrease was due to an industry-wide special assessment in the second quarter of 2009 of approximately $550,000 which represented 5 basis points of the Company’s subsidiary bank’s total assets less Tier 1 Capital.

Professional fees increased 29% during the quarter ended June 30, 2010 compared with the same quarter of 2009 primarily as a result of professional fees associated with the acquisition of two branch offices during 2010.  Other operating expenses increased by 20% during the quarter ended June 30, 2010 compared with 2009.  The increase was largely attributable to costs associated with the Company’s common identity initiative.

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

7 of 13

Quarter ended June 30, 2010 compared to quarter ended March 31, 2010

Net income for the quarter ended June 30, 2010 totaled $3,408,000, an increase of $157,000 or 5% from first quarter 2010 net income of $3,251,000.

Summary Average Balance Sheet

(Tax-equivalent basis / $ in thousands)

	Quarter Ended June 30, 2010							Quarter Ended March 31, 2010
	Principal		Income/		Yield/			Principal		Income/		Yield/
	Balance		Expense		Rate			Balance		Expense		Rate
Assets
Federal Funds Sold and Other Short-term Investments	$	52,008	$	27		0.21	%	$	25,257	$	9		0.15	%
Securities		274,969		2,852		4.15	%		264,801		2,875		4.34	%
Loans and Leases		901,856		13,264		5.90	%		877,629		12,906		5.96	%
Total Interest Earning Assets	$	1,228,833	$	16,143		5.27	%	$	1,167,687	$	15,790		5.46	%
Liabilities
Demand Deposit Accounts	$	163,227						$	154,219
Interest-bearing Demand, Savings, and Money Market Accounts	$	512,680	$	461		0.36	%	$	476,246	$	426		0.36	%
Time Deposits		353,577		2,225		2.52	%		342,488		2,186		2.59	%
FHLB Advances and Other Borrowings		154,884		1,340		3.47	%		151,318		1,322		3.54	%
Total Interest-Bearing Liabilities	$	1,021,141	$	4,026		1.58	%	$	970,052	$	3,934		1.64	%
Cost of Funds						1.32	%						1.36	%
Net Interest Income			$	12,117						$	11,856
Net Interest Margin						3.95	%						4.10	%

During the quarter ended June 30, 2010, net interest income totaled $11,915,000 representing an increase of $266,000 or 2% from the first quarter of 2010.  The increased net interest income was largely the result of a higher level of earning assets driven by growth in the Company’s core deposit base, both internally and as augmented by the deposits acquired in the branch acquisition.  The tax equivalent net interest margin for the second quarter of 2010 was 3.95% compared to 4.10% in the first quarter of 2010.  The reduced net interest margin was largely attributable to a higher level of federal funds sold and other short-term investments during the second quarter.

During the quarter ended June 30, 2010, non-interest income declined 17% compared to the first quarter of 2010.

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

8 of 13

	Qtr Ended		Qtr Ended
Non-interest Income	06/30/10		03/31/10		$ Change			% Change
Trust and Investment Product Fees	$	395	$	391	$	4			1	%
Service Charges on Deposit Accounts		1,075		946		129			14	%
Insurance Revenues		1,083		1,686		(603	)		-36	%
Company Owned Life Insurance		186		202		(16	)		-8	%
Other Operating Income		553		1,036		(483	)		-47	%
Subtotal		3,292		4,261		(969	)		-23	%
Net Gains on Sales of Loans		499		318		181			57	%
Net Gain (Loss) on Securities		—		—		—			0	%
Total Non-interest Income	$	3,791	$	4,579	$	(788	)		-17	%

Deposit service charges and fees increased by 14% during the second quarter of 2010 compared with the first quarter of 2010 due to increased customer utilization of the Company’s overdraft protection program and a cyclical increase in overdraft fees that historically occurs during the second quarter of the year compared with the first quarter of the year.  Insurance revenues declined 36% during the quarter ended June 30, 2010 compared with the three months ended March 31, 2010.  The decline was largely attributable to annual contingency revenue recognized in the quarter ended March 31, 2010.

Other operating income declined 47% during the second quarter of 2010 compared with the first quarter of 2010.  The decline was attributable to the gain on sale of an other real estate owned property during the first quarter of 2010 and a gain from the sale of a former operations office facility of the Company in the first quarter of 2010 which were not recurring items in the second quarter of 2010.

The net gain of sales of loans increased 57% due to increased residential mortgage loan production that has been sold in the secondary market or is being held for sale in the secondary market.  The increase in loan production was largely attributable to a decline in mortgage loan interest rates, an increase in refinance activity, and an increase in purchase activity resulting from tax incentive programs.

During the quarter ended June 30, 2010, non-interest expense decreased approximately 4% compared with the first quarter of 2010.

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

9 of 13

	Qtr Ended		Qtr Ended
Non-interest Expense	06/30/10		03/31/10		$ Change			% Change
Salaries and Employee Benefits	$	5,288	$	5,549	$	(261	)		-5	%
Occupancy, Furniture and Equipment Expense		1,435		1,539		(104	)		-7	%
FDIC Premiums		336		352		(16	)		-5	%
Data Processing Fees		365		359		6			2	%
Professional Fees		524		521		3			1	%
Advertising and Promotion		273		269		4			1	%
Intangible Amortization		247		218		29			13	%
Other Operating Expenses		1,434		1,459		(25	)		-2	%
Total Non-interest Expense	$	9,902	$	10,266	$	(364	)		-4	%

Salaries and benefits expense decreased approximately 5% during the second quarter of 2010 compared with the first quarter of 2010.  The decline was largely attributable to lower costs associated with the Company’s health insurance plan during the second quarter of 2010 compared with the first quarter of 2010.

Occupancy, furniture and equipment expense declined 7% in the quarter ended June 30, 2010, compared with the first quarter of 2010.  The decrease was attributable to lower levels of real and personal property tax expense and a cyclically lower utility expense level.

German American Bancorp, Inc. is a NASDAQ-traded (symbol GABC) financial services holding company.  German American, through its principal banking subsidiary German American Bancorp, operates 30 retail banking offices in 12 contiguous southern Indiana. counties. The company also owns a trust, brokerage and financial planning subsidiary, operated from its banking offices, and a full service property and casualty insurance agency with seven offices throughout its banking market area.

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

10 of 13

Forward Looking Statements

The Company's statements in this press release regarding the Company’s intentions to strive to build upon its growth in its Southern Indiana banking markets (including the new Evansville banking market) are "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 the press release. Factors that could cause actual experience to differ from the expectations implied in this press release include 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; continued deterioration in general economic conditions, either nationally or locally, resulting in, among other things, credit quality deterioration and dampened loan demand; actions of the Federal Reserve Board; changes in accounting principles and interpretations; and actions of federal regulatory agencies under the Federal Deposit Insurance Act, the U.S. financial reform legislation, and other legislative and regulatory actions and reforms. These forward-looking statements speak only as of the date of this press release and German American undertakes no obligation to update any such forward-looking statement to reflect events or circumstances that occur after the date hereof.

GERMAN AMERICAN BANCORP, INC.

(unaudited, dollars in thousands except per share data)

Consolidated Balance Sheets

	June 30,			March 31,			June 30,
	2010			2010			2009
ASSETS
Cash and Due from Banks	$	17,110		$	15,480		$	19,064
Short-term Investments		19,399			29,919			24,183
Investment Securities		300,441			262,833			202,190
Loans Held-for-Sale		10,768			5,270			12,170
Loans, Net of Unearned Income		912,938			866,018			895,527
Allowance for Loan Losses		(10,813	)		(10,713	)		(10,295	)
Net Loans		902,125			855,305			885,232
Stock in FHLB and Other Restricted Stock		10,621			10,621			10,621
Premises and Equipment		26,182			21,122			22,225
Goodwill and Other Intangible Assets		12,891			12,055			12,740
Other Assets		41,391			41,407			36,067
TOTAL ASSETS	$	1,340,928		$	1,254,012		$	1,224,492
LIABILITIES
Non-interest-bearing Demand Deposits	$	166,922		$	158,163		$	147,049
Interest-bearing Demand, Savings, and Money Market Accounts		522,438			473,278			474,323
Time Deposits		360,496			341,554			334,377
Total Deposits		1,049,856			972,995			955,749
Borrowings		157,861			151,647			147,832
Other Liabilities		13,054			13,121			12,194
TOTAL LIABILITIES		1,220,771			1,137,763			1,115,775
SHAREHOLDERS' EQUITY
Common Stock and Surplus		80,125			79,994			79,641
Retained Earnings		32,595			30,741			25,631
Accumulated Other Comprehensive Income		7,437			5,514			3,445
TOTAL SHAREHOLDERS' EQUITY		120,157			116,249			108,717
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,340,928		$	1,254,012		$	1,224,492
END OF PERIOD SHARES OUTSTANDING		11,104,918			11,101,560			11,074,718
BOOK VALUE PER SHARE	$	10.82		$	10.47		$	9.82

GERMAN AMERICAN BANCORP, INC.

(unaudited, dollars in thousands except per share data)

Consolidated Statements of Income

	Three Months Ended							Six Months Ended
	June 30,		March 31,		June 30,			June 30,		June 30,
	2010		2010		2009			2010		2009
INTEREST INCOME
Interest and Fees on Loans	$	13,194	$	12,839	$	13,473		$	26,033	$	26,867
Interest on Short-term Investments		27		9		22			36		39
Interest and Dividends on Investment Securities		2,720		2,735		2,428			5,455		4,874
TOTAL INTEREST INCOME		15,941		15,583		15,923			31,524		31,780
INTEREST EXPENSE
Interest on Deposits		2,686		2,612		3,335			5,298		7,340
Interest on Borrowings		1,340		1,322		1,471			2,662		2,682
TOTAL INTEREST EXPENSE		4,026		3,934		4,806			7,960		10,022
NET INTEREST INCOME		11,915		11,649		11,117			23,564		21,758
Provision for Loan Losses		1,000		1,500		1,000			2,500		1,750
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		10,915		10,149		10,117			21,064		20,008
NON-INTEREST INCOME
Net Gain on Sales of Loans		499		318		461			817		1,026
Net Gain (Loss) on Securities		-		-		(34	)		-		(34	)
Other Non-interest Income		3,292		4,261		3,395			7,553		7,074
TOTAL NON-INTEREST INCOME		3,791		4,579		3,822			8,370		8,066
NON-INTEREST EXPENSE
Salaries and Benefits		5,288		5,549		5,515			10,837		11,129
Other Non-interest Expenses		4,614		4,717		4,718			9,331		9,185
TOTAL NON-INTEREST EXPENSE		9,902		10,266		10,233			20,168		20,314
Income before Income Taxes		4,804		4,462		3,706			9,266		7,760
Income Tax Expense		1,396		1,211		942			2,607		2,054
NET INCOME	$	3,408	$	3,251	$	2,764		$	6,659	$	5,706
EARNINGS PER SHARE & DILUTED EARNINGS PER SHARE	$	0.31	$	0.29	$	0.25		$	0.60	$	0.52
WEIGHTED AVERAGE SHARES OUTSTANDING		11,103,095		11,081,680		11,073,081			11,092,447		11,055,111
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		11,108,160		11,088,387		11,073,575			11,097,343		11,055,111

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,
	2010			2010			2009			2010			2009
EARNINGS PERFORMANCE RATIOS
Annualized Return on Average Assets		1.04	%		1.04	%		0.92	%		1.04	%		0.95	%
Annualized Return on Average Equity		11.57	%		11.28	%		10.13	%		11.43	%		10.58	%
Net Interest Margin		3.95	%		4.10	%		4.02	%		4.02	%		3.97	%
Efficiency Ratio (1)		62.24	%		62.47	%		67.61	%		62.36	%		67.24	%
Net Overhead Expense to Average Earning Assets (2)		1.99	%		1.95	%		2.28	%		1.97	%		2.19	%
ASSET QUALITY RATIOS
Annualized Net Charge-offs to Average Loans		0.40	%		0.82	%		0.34	%		0.61	%		0.22	%
Allowance for Loan Losses to Period End Loans		1.18	%		1.24	%		1.15	%
Non-performing Assets to Period End Assets		0.79	%		0.87	%		0.80	%
Non-performing Loans to Period End Loans		0.96	%		1.08	%		0.82	%
Loans 30-89 Days Past Due to Period End Loans		0.86	%		0.69	%		0.54	%
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA
Average Assets	$	1,314,847		$	1,252,897		$	1,207,413		$	1,284,043		$	1,201,932
Average Earning Assets	$	1,228,833		$	1,167,687		$	1,126,446		$	1,198,429		$	1,120,259
Average Total Loans	$	901,856		$	877,629		$	882,554		$	889,810		$	885,217
Average Demand Deposits	$	163,227		$	154,219		$	148,214		$	158,748		$	147,266
Average Interest Bearing Liabilities	$	1,021,141		$	970,052		$	935,705		$	995,738		$	933,316
Average Equity	$	117,801		$	115,235		$	109,119		$	116,525		$	107,846
Period End Non-performing Assets (3)	$	10,629		$	10,972		$	9,815
Period End Non-performing Loans (4)	$	8,807		$	9,333		$	7,364
Period End Loans 30-89 Days Past Due (5)	$	7,866		$	5,955		$	4,841
Tax Equivalent Net Interest Income	$	12,117		$	11,856		$	11,314		$	23,973		$	22,143
Net Charge-offs during Period	$	900		$	1,803		$	749		$	2,703		$	977

(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.