Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company’s operations include three primary segments: core banking, trust and investment advisory services, and insurance operations. The core banking segment involves attracting deposits from the general public and using such funds to originate consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, primarily in the Company’s local markets. The core banking segment also involves the sale of residential mortgage loans in the secondary market. The trust and investment advisory services segment involves providing trust, investment advisory, and brokerage services to customers. The insurance segment offers a full range of personal and corporate property and casualty insurance products, primarily in the Company’s banking subsidiary’s local markets.

The core banking segment is comprised by the Company’s banking subsidiary, German American Bancorp, which operated through 37 banking offices at December 31, 2014. Net interest income from loans and investments funded by deposits and borrowings is the primary revenue for the core-banking segment. The trust and investment advisory services segment’s revenues are comprised primarily of fees generated by German American Financial Advisors & Trust Company. These fees are derived by providing trust, investment advisory, and brokerage services to its customers. The insurance segment primarily consists of German American Insurance, Inc., which provides a full line of personal and corporate insurance products. Commissions derived from the sale of insurance products are the primary source of revenue for the insurance segment.

The following segment financial information has been derived from the internal financial statements of German American Bancorp, Inc., which are used by management to monitor and manage the financial performance of the Company. The accounting policies of the three segments are the same as those of the Company. The evaluation process for segments does not include holding company income and expense. Holding company amounts are the primary differences between segment amounts and consolidated totals, and are reflected in the column labeled “Other” below, along with amounts to eliminate transactions between segments.

	Core Banking		Trust and Investment Advisory Services			Insurance		Other			Consolidated Totals
Year Ended December 31, 2014
Net Interest Income	$	74,801	$	16		$	4	$	(482	)	$	74,339
Net Gains on Sales of Loans	1,892		—			—		—			1,892
Net Gains on Securities	1,481		—			—		—			1,481
Trust and Investment Product Fees	4		3,671			—		—			3,675
Insurance Revenues	29		38			7,188		—			7,255
Noncash Items:
Provision for Loan Losses	150		—			—		—			150
Depreciation and Amortization	4,527		23			110		150			4,810
Income Tax Expense (Benefit)	12,258		(156		)	737		(770		)	12,069
Segment Profit (Loss)	27,589		(259		)	1,059		(45		)	28,344
Segment Assets at December 31, 2014	2,242,456		11,401			6,429		(23,187		)	2,237,099

	Core Banking		Trust and Investment Advisory Services			Insurance		Other			Consolidated Totals
Year Ended December 31, 2013
Net Interest Income	$	69,634	$	21		$	17	$	(1,155	)	$	68,517
Net Gains on Sales of Loans	2,645		—			—		—			2,645
Net Gains on Securities	2,065		—			—		364			2,429
Trust and Investment Product Fees	6		3,355			—		(3		)	3,358
Insurance Revenues	39		31			6,147		—			6,217
Noncash Items:
Provision for Loan Losses	350		—			—		—			350
Depreciation and Amortization	3,944		28			339		150			4,461
Income Tax Expense (Benefit)	12,387		(32		)	320		(1,211		)	11,464
Segment Profit (Loss)	25,389		(70		)	425		(331		)	25,413
Segment Assets at December 31, 2013	2,171,837		11,663			5,636		(25,309		)	2,163,827

	Core Banking		Trust and Investment Advisory Services			Insurance		Other			Consolidated Totals
Year Ended December 31, 2012
Net Interest Income	$	68,311	$	21		$	34	$	(2,118	)	$	66,248
Net Gains on Sales of Loans	3,234		—			—		—			3,234
Net Gains on Securities	1,667		—			—		—			1,667
Trust and Investment Product Fees	5		2,657			—		(5		)	2,657
Insurance Revenues	23		36			5,465		—			5,524
Noncash Items:
Provision for Loan Losses	2,412		—			—		—			2,412
Depreciation and Amortization	4,099		24			415		150			4,688
Income Tax Expense (Benefit)	11,999		(187		)	181		(1,324		)	10,669
Segment Profit (Loss)	25,118		(298		)	250		(1,015		)	24,055
Segment Assets at December 31, 2012	2,006,992		11,551			8,333		(20,576		)	2,006,300