EX-99.1 2 exhibit991q22016.htm EXHIBIT 99.1 Exhibit
Exhibit 99.1

NEWS RELEASE

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


1 of 12



July 25, 2016
GERMAN AMERICAN BANCORP, INC. (GABC) REPORTS RECORD QUARTERLY EARNINGS


Jasper, Indiana: July 25, 2016 -- German American Bancorp, Inc. (NASDAQ: GABC) reported today the achievement of record 2016 second quarter earnings of $9.8 million, or $0.64 per share. The Company’s record earnings were enhanced by the inclusion of the operations of River Valley Bancorp, and its banking subsidiary River Valley Financial Bank, for the full quarter, following the acquisition of River Valley on March 1, 2016. The current quarter record performance represented a 16.4% increase, on a per share basis, from the $7.3 million, or $0.55 per share, reported in the second quarter of 2015.
German American’s record second quarter earnings were also driven by a number of positive factors within the Company’s core operations, including the continuation of the recent trend of exceptional organic growth within the Company’s loan portfolio. Total end-of-period loans from the Company’s existing banking offices, exclusive of the acquired River Valley loan portfolio, grew approximately $57 million, or 14% on a linked- quarter annualized basis, during the second quarter. Total reported end-of-period loans, inclusive of River Valley, grew by $46 million, or 10% on a linked-quarter annualized basis. This combination of exceptionally strong organic loan growth and the inclusion of the River Valley loan portfolio resulted in an improvement of German American’s net interest margin to 3.86% during the second quarter.

Commenting on the Company’s posting of the record quarterly operating performance, Mark A. Schroeder stated, "We are extremely pleased with this quarter’s results, which were positively impacted by both the anticipated earnings enhancements from the merger transaction with River Valley and by exceptionally strong loan growth throughout our footprint and within all loan categories. As always, we are honored and humbled that clients throughout our footprint are, in increasing numbers, reaching out to our team of dedicated, financial professionals for advice and counsel in the achievement of the financial success of their businesses, communities, and families. This quarter’s record performance is a by-product of the strong endorsement of our clients.”

The Company also announced that its Board of Directors declared its regular quarterly cash dividend of $0.18 per share, which will be payable on August 20, 2016 to shareholders of record as of August 10, 2016.







    

NEWS RELEASE

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


2 of 12


Balance Sheet Highlights

Total assets for the Company increased to $2.916 billion at June 30, 2016, representing an increase of $49.1 million, or 7% on an annualized basis, compared with March 31, 2016 and an increase of $542.1 million compared with June 30, 2015. The year-over-year increase was largely attributable to the acquisition of River Valley Bancorp ("River Valley") and its banking subsidiary River Valley Financial Bank effective March 1, 2016. River Valley's total assets as of the effective date of the merger totaled approximately $516.3 million.

June 30, 2016 total loans increased $45.6 million, or 10% on an annualized basis, compared with March 31, 2016 and increased $487.8 million, or 33%, compared with June 30, 2015. As of June 30, 2016, outstanding loans from River Valley totaled $305.3 million which contributed significantly to the overall loan portfolio growth on a year-over-year basis.

Total loans from the Company's existing branch network, excluding the acquired River Valley loans, grew by approximately $56.9 million, or 14% on an annualized basis, during the second quarter of 2016 compared with March 31, 2016 total loans. Included in this second quarter of 2016 loan growth, excluding River Valley, was an increase of approximately $35.7 million, or 13% on an annualized basis, of commercial real estate and commercial and industrial loans and an increase in agricultural loans of approximately $13.3 million, or 23% on annualized basis. On a year-over-year basis, total loans from the Company's existing branch network, excluding the acquired River Valley loans, grew by $182.5 million, or 12%. This growth occurred in all segments of the loan portfolio.

 
 
 
 
 
 
 
End of Period Loan Balances
 
6/30/2016
 
3/31/2016
 
6/30/2015
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial & Industrial Loans
 
$
463,501

 
$
448,569

 
$
396,741

Commercial Real Estate Loans
 
840,215

 
812,565

 
584,426

Agricultural Loans
 
285,353

 
275,938

 
222,298

Consumer Loans
 
182,610

 
174,005

 
135,874

Residential Mortgage Loans
 
192,603

 
207,561

 
137,129

 
 
$
1,964,282

 
$
1,918,638

 
$
1,476,468

 
 
 
 
 
 
 





    

NEWS RELEASE

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


3 of 12


Non-performing assets totaled $9.7 million at June 30, 2016 compared to $7.1 million of non-performing assets at March 31, 2016 and $5.8 million at June 30, 2015. Non-performing assets represented 0.33% of total assets at June 30, 2016 compared to 0.25% of total assets at March 31, 2016 and 0.26% of total assets at June 30, 2015. Non-performing loans totaled $9.3 million at June 30, 2016 compared to $6.8 million at March 31, 2016 and $5.4 million of non-performing loans at June 30, 2015. Non-performing loans represented 0.48% of total loans at June 30, 2016 compared to 0.35% at March 31, 2016 and 0.37% at June 30, 2015. The increase in non-performing assets and non-performing loans was primarily attributable to the loans acquired in the River Valley merger transaction which closed effective March 1, 2016.

 
 
 
 
 
 
Non-performing Assets
 
 
 
 
 
(dollars in thousands)
 
 
 
 
 
 
6/30/2016
 
3/31/2016
 
6/30/2015
Non-Accrual Loans
$
8,294

 
$
6,592

 
$
5,431

Past Due Loans (90 days or more)
1,024

 
168

 
15

       Total Non-Performing Loans
9,318

 
6,760

 
5,446

Other Real Estate
416

 
343

 
317

       Total Non-Performing Assets
$
9,734

 
$
7,103

 
$
5,763

 
 
 
 
 
 
Restructured Loans
$
74

 
$
122

 
$
2,587

 
 
 
 
 
 

The Company’s allowance for loan losses totaled $15.3 million at June 30, 2016 compared to $15.2 million at March 31, 2016 and $14.4 million at June 30, 2015. The allowance for loan losses represented 0.78% of period-end loans at June 30, 2016 compared with 0.79% of period-end loans at March 31, 2016 and 1.04% of period-end loans at June 30, 2015. The year-over-year decline in the allowance for loan loss as a percent of total loans was the result of the acquisition of River Valley. 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 $11.8 million as of June 30, 2016, $13.3 million at March 31, 2016 and $3.3 million at June 30, 2015.








    

NEWS RELEASE

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


4 of 12

Total deposits increased $36.7 million, or 7% on an annualized basis, as of June 30, 2016 compared with March 31, 2016 and increased $514.6 million compared with June 30, 2015.

 
 
 
 
 
 
 
End of Period Deposit Balances
 
6/30/2016
 
3/31/2016
 
6/30/2015
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-interest-bearing Demand Deposits
 
$
506,498

 
$
507,567

 
$
425,547

IB Demand, Savings, and MMDA Accounts
 
1,380,038

 
1,310,089

 
1,014,013

Time Deposits < $100,000
 
236,127

 
244,718

 
189,615

Time Deposits > $100,000
 
154,709

 
178,240

 
133,590

 
 
$
2,277,372

 
$
2,240,614

 
$
1,762,765

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Results of Operations Highlights – Quarter ended June 30, 2016

Net income for the quarter ended June 30, 2016 totaled $9,788,000, or $0.64 per share, compared with the first quarter 2016 net income of $5,146,000, or $0.37 per share, and the second quarter 2015 net income $7,325,000 or $0.55 per share. The first quarter of 2016 results of operations included only one month's operations of River Valley and were significantly impacted by merger related charges associated with the closing of the River Valley transaction which was effective March 1, 2016. These merger related charges totaled approximately $3,884,000, or $2,448,000 on an after tax basis, which represented approximately $0.18 per share during the first quarter of 2016. The second quarter of 2016 included a full quarter of River Valley's operations.


    

NEWS RELEASE

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


5 of 12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary Average Balance Sheet
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Tax-equivalent basis / dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Quarter Ended
 
 Quarter Ended
 
 Quarter Ended
 
 
June 30, 2016
 
March 31, 2016
 
June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 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
 
$
25,918

 
$
20

 
0.30
%
 
$
20,377

 
$
17

 
0.34
%
 
$
20,540

 
$
4

 
0.07
%
Securities
 
723,222

 
5,168

 
2.86
%
 
696,175

 
4,926

 
2.83
%
 
632,270

 
4,400

 
2.78
%
Loans and Leases
 
1,935,246

 
22,791

 
4.73
%
 
1,694,643

 
18,755

 
4.45
%
 
1,456,699

 
16,630

 
4.58
%
Total Interest Earning Assets
 
$
2,684,386

 
$
27,979

 
4.19
%
 
$
2,411,195

 
$
23,698

 
3.95
%
 
$
2,109,509

 
$
21,034

 
4.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Demand Deposit Accounts
 
$
502,070

 
 
 
 
 
$
467,516

 
 
 
 
 
$
420,341

 
 
 
 
IB Demand, Savings, and
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
        MMDA Accounts
 
$
1,369,446

 
$
672

 
0.20
%
 
$
1,143,434

 
$
464

 
0.16
%
 
$
1,055,880

 
$
345

 
0.13
%
Time Deposits
 
426,918

 
654

 
0.62
%
 
400,353

 
691

 
0.69
%
 
341,678

 
677

 
0.79
%
FHLB Advances and Other Borrowings
 
235,434

 
853

 
1.46
%
 
243,030

 
741

 
1.23
%
 
160,196

 
450

 
1.13
%
Total Interest-Bearing Liabilities
 
$
2,031,798

 
$
2,179

 
0.43
%
 
$
1,786,817

 
$
1,896

 
0.43
%
 
$
1,557,754

 
$
1,472

 
0.38
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cost of Funds
 
 
 
 
 
0.33
%
 
 
 
 
 
0.32
%
 
 
 
 
 
0.28
%
Net Interest Income
 
 
 
$
25,800

 
 
 
 
 
$
21,802

 
 
 
 
 
$
19,562

 
 
Net Interest Margin
 
 
 
 
 
3.86
%
 
 
 
 
 
3.63
%
 
 
 
 
 
3.72
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

During the quarter ended June 30, 2016, net interest income totaled $24,671,000 representing an increase of $3,887,000, or 19%, from the quarter ended March 31, 2016 net interest income of $20,784,000 and an increase of $5,965,000, or 32%, compared with the quarter ended June 30, 2015 net interest income of $18,706,000. The increase in net interest income was largely attributable to the River Valley merger transaction.



    

NEWS RELEASE

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


6 of 12

The tax equivalent net interest margin for the quarter ended June 30, 2016 was 3.86% compared with 3.63% in the first quarter of 2016 and 3.72% in the second quarter of 2015. The increase in the net interest margin during the second quarter of 2016 was primarily attributable to a relatively stable cost of funds combined with an increased loan yield stemming largely from the addition of the River Valley loan portfolio and an increase in the amount of accretion of loan discounts on acquired loans. Accretion of loan discounts on acquired loans contributed approximately 23 basis points to the net interest margin on an annualized basis in the second quarter of 2016, 6 basis points in the first quarter of 2016, and 5 basis points in the second quarter of 2015. The increase in accretion in the second quarter of 2016 was largely attributable to the pay-off activity on loans acquired in the River Valley transaction.

During the quarter ended June 30, 2016, the Company recorded a provision for loan loss of $350,000 compared to a provision of $850,000 during the first quarter of 2016 and a provision of $250,000 in the second quarter of 2015. The level of 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, 2016, non-interest income totaled $8,055,000, an increase of $838,000 or 12%, compared with the quarter ended March 31, 2016, and an increase of $1,934,000, or 32%, compared with the second quarter of 2015. The increase during the second quarter of 2016 relative to both comparative periods was impacted by the acquisition of River Valley. The second quarter of 2016 included a full quarter of River Valley operations while the first quarter of 2016 only included one month of operations and the second quarter of 2015 had no operations of River Valley included.
 
 
 
 
 
 
 
 
 
Quarter Ended
 
Quarter Ended
 
Quarter Ended
Non-interest Income
 
6/30/2016
 
3/31/2016
 
6/30/2015
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Trust and Investment Product Fees
 
$
1,223

 
$
1,021

 
$
939

Service Charges on Deposit Accounts
 
1,534

 
1,233

 
1,220

Insurance Revenues
 
1,605

 
2,727

 
1,515

Company Owned Life Insurance
 
247

 
215

 
207

Interchange Fee Income
 
599

 
537

 
563

Other Operating Income
 
996

 
764

 
631

     Subtotal
 
6,204

 
6,497

 
5,075

Net Gains on Loans
 
883

 
720

 
784

Net Gains on Securities
 
968

 
—

 
262

Total Non-interest Income
 
$
8,055

 
$
7,217

 
$
6,121

 
 
 
 
 
 
 


    

NEWS RELEASE

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


7 of 12

Insurance revenues declined $1,122,000, or 41%, during the quarter ended June 30, 2016, compared with the first quarter of 2016 and increased $90,000, or 6%, compared with the second quarter of 2015. The decrease in the second quarter of 2016 compared with first quarter of 2016 was due to contingency revenue. Contingency revenue during the first quarter of 2016 totaled $1,113,000 compared with no contingency revenue during the second quarter of 2016. 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.

The Company realized $968,000 in net gains on sales of securities during the second quarter of 2016 compared with no gains on sales of securities during the first quarter of 2016 and $262,000 of net gains on the sale of securities in the second quarter of 2015.

During the quarter ended June 30, 2016, non-interest expense totaled $18,339,000, a decline of $1,901,000, or 9%, compared with the quarter ended March 31, 2016, and an increase of $4,024,000, or 28%, compared with the second quarter of 2015. During the second quarter of 2016, the Company recorded costs related to the River Valley merger transaction that totaled $246,000 following recording costs related to the merger of $3,884,000 in the first quarter of 2016.

Excluding the merger related transaction costs, the majority of the increase in operating expenses during the second quarter of 2016 compared to the first quarter of 2016 and the second quarter of 2015 were related to the operating costs of River Valley. The second quarter of 2016 included a full quarter of River Valley operations while the first quarter of 2016 only included one month of operations and the second quarter of 2015 had no operations of River Valley included.


    

NEWS RELEASE

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


8 of 12

 
 
 
 
 
 
 
 
 
Quarter Ended
 
Quarter Ended
 
Quarter Ended
Non-interest Expense
 
6/30/2016
 
3/31/2016
 
6/30/2015
(dollars in thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
Salaries and Employee Benefits
 
$
10,184

 
$
11,601

 
$
8,259

Occupancy, Furniture and Equipment Expense
 
2,218

 
1,887

 
1,683

FDIC Premiums
 
339

 
328

 
284

Data Processing Fees
 
1,181

 
2,165

 
870

Professional Fees
 
780

 
1,318

 
642

Advertising and Promotion
 
629

 
544

 
484

Intangible Amortization
 
312

 
208

 
202

Other Operating Expenses
 
2,696

 
2,189

 
1,891

Total Non-interest Expense
 
$
18,339

 
$
20,240

 
$
14,315

 
 
 
 
 
 
 

Salaries and benefits decreased $1,471,000, or 12%, in the second quarter of 2016 compared with the first quarter of 2016. The decline was related to $1,934,000 of merger costs related to the settlement of various employment and benefit arrangements recorded in the first quarter of 2016.

Data processing fees decreased $984,000, or 45%, in the second quarter of 2016 compared with the first quarter of 2016. In the first quarter of 2016, the Company recorded $1,198,000 of merger costs related to the consolidation of various data processing and information systems.

Professional fees decreased $538,000, or 41%, in the second quarter of 2016 compared with the first quarter of 2016. The second quarter of 2016 included $125,000 of merger related costs while the first quarter of 2016 included $599,000 of merger related costs.


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 51 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.).



    

NEWS RELEASE

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


9 of 12


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,
2016
 
March 31,
2016
 
June 30,
2015
ASSETS
 
 
 
 
 
     Cash and Due from Banks
$
36,027

 
$
34,734

 
$
31,538

     Short-term Investments
18,113

 
14,312

 
20,729

     Interest-bearing Time Deposits with Banks
1,744

 
1,992

 
100

     Investment Securities
719,916

 
715,611

 
618,891

 
 
 
 
 
 
     Loans Held-for-Sale
5,135

 
8,700

 
10,622

 
 
 
 
 
 
     Loans, Net of Unearned Income
1,960,555

 
1,914,948

 
1,472,646

     Allowance for Loan Losses
(15,304
)
 
(15,161
)
 
(15,258
)
        Net Loans
1,945,251

 
1,899,787

 
1,457,388

 
 
 
 
 
 
     Stock in FHLB and Other Restricted Stock
13,048

 
13,048

 
8,122

     Premises and Equipment
47,669

 
47,617

 
38,707

     Goodwill and Other Intangible Assets
57,048

 
57,359

 
22,163

     Other Assets
71,860

 
73,567

 
51,426

   TOTAL ASSETS
$
2,915,811

 
$
2,866,727

 
$
2,259,686

 
 
 
 
 
 
LIABILITIES
 
 
 
 
 
     Non-interest-bearing Demand Deposits
$
506,498

 
$
507,567

 
$
425,547

     Interest-bearing Demand, Savings, and Money Market Accounts
1,380,038

 
1,310,089

 
1,014,013

     Time Deposits
390,836

 
422,958

 
323,205

        Total Deposits
2,277,372

 
2,240,614

 
1,762,765

 
 
 
 
 
 
     Borrowings
278,214

 
278,698

 
240,072

     Other Liabilities
27,870

 
25,777

 
19,799

   TOTAL LIABILITIES
2,583,456

 
2,545,089

 
2,022,636

 
 
 
 
 
 
SHAREHOLDERS' EQUITY
 
 
 
 
 
     Common Stock and Surplus
186,251

 
185,930

 
122,437

     Retained Earnings
134,909

 
127,867

 
114,190

     Accumulated Other Comprehensive Income
11,195

 
7,841

 
423

   TOTAL SHAREHOLDERS' EQUITY
332,355

 
321,638

 
237,050

 
 
 
 
 
 
   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
2,915,811

 
$
2,866,727

 
$
2,259,686

 
 
 
 
 
 
END OF PERIOD SHARES OUTSTANDING
15,257,669

 
15,253,503

 
13,259,594

 
 
 
 
 
 
TANGIBLE BOOK VALUE PER SHARE
$
18.04

 
$
17.33

 
$
16.21




GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
 
 
 
 
 
 
 
 
 
 
 
Consolidated Statements of Income
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30,
2016
 
March 31,
2016
 
June 30,
2015
 
June 30,
2016
 
June 30,
2015
INTEREST INCOME
 
 
 
 
 
 
 
 
 
   Interest and Fees on Loans
$
22,670

 
$
18,664

 
$
16,537

 
$
41,334

 
$
32,836

   Interest on Short-term Investments and Time Deposits
20

 
17

 
4

 
37

 
7

   Interest and Dividends on Investment Securities
4,160

 
3,999

 
3,637

 
8,159

 
7,335

  TOTAL INTEREST INCOME
26,850

 
22,680

 
20,178

 
49,530

 
40,178

 
 
 
 
 
 
 
 
 
 
 
INTEREST EXPENSE
 
 
 
 
 
 
 
 
 
   Interest on Deposits
1,326

 
1,155

 
1,022

 
2,481

 
2,015

   Interest on Borrowings
853

 
741

 
450

 
1,594

 
908

  TOTAL INTEREST EXPENSE
2,179

 
1,896

 
1,472

 
4,075

 
2,923

 
 
 
 
 
 
 
 
 
 
 
   NET INTEREST INCOME
24,671

 
20,784

 
18,706

 
45,455

 
37,255

   Provision for Loan Losses
350

 
850

 
250

 
1,200

 
500

   NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
24,321

 
19,934

 
18,456

 
44,255

 
36,755

 
 
 
 
 
 
 
 
 
 
 
NON-INTEREST INCOME
 
 
 
 
 
 
 
 
 
   Net Gain on Sales of Loans
883

 
720

 
784

 
1,603

 
1,533

   Net Gain on Securities
968

 
—

 
262

 
968

 
725

   Other Non-interest Income
6,204

 
6,497

 
5,075

 
12,701

 
11,005

  TOTAL NON-INTEREST INCOME
8,055

 
7,217

 
6,121

 
15,272

 
13,263

 
 
 
 
 
 
 
 
 
 
 
NON-INTEREST EXPENSE
 
 
 
 
 
 
 
 
 
   Salaries and Benefits
10,184

 
11,601

 
8,259

 
21,785

 
17,084

   Other Non-interest Expenses
8,155

 
8,639

 
6,056

 
16,794

 
12,064

  TOTAL NON-INTEREST EXPENSE
18,339

 
20,240

 
14,315

 
38,579

 
29,148

 
 
 
 
 
 
 
 
 
 
 
   Income before Income Taxes
14,037

 
6,911

 
10,262

 
20,948

 
20,870

   Income Tax Expense
4,249

 
1,765

 
2,937

 
6,014

 
6,239

 
 
 
 
 
 
 
 
 
 
 
NET INCOME
$
9,788

 
$
5,146

 
$
7,325

 
$
14,934

 
$
14,631

 
 
 
 
 
 
 
 
 
 
 
BASIC EARNINGS PER SHARE
$
0.64

 
$
0.37

 
$
0.55

 
$
1.02

 
$
1.11

DILUTED EARNINGS PER SHARE
$
0.64

 
$
0.37

 
$
0.55

 
$
1.02

 
$
1.10

 
 
 
 
 
 
 
 
 
 
 
WEIGHTED AVERAGE SHARES OUTSTANDING
15,256,019

 
13,924,856

 
13,256,026

 
14,590,437

 
13,238,836

DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING
15,257,219

 
13,928,933

 
13,263,604

 
14,593,076

 
13,246,359






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,
 
 
2016
 
2016
 
2015
 
2016
 
2015
EARNINGS PERFORMANCE RATIOS
 
 
 
 
 
 
 
 
 
 
Annualized Return on Average Assets
1.36
%
 
0.81
%
 
1.31
%
 
1.10
%
 
1.31
%
 
Annualized Return on Average Equity
12.02
%
 
7.39
%
 
12.27
%
 
9.79
%
 
12.40
%
 
Net Interest Margin
3.86
%
 
3.63
%
 
3.72
%
 
3.75
%
 
3.72
%
 
Efficiency Ratio (1)
54.17
%
 
69.75
%
 
55.74
%
 
61.36
%
 
55.90
%
 
Net Overhead Expense to Average Earning Assets (2)
1.53
%
 
2.16
%
 
1.55
%
 
1.83
%
 
1.51
%
 
 
 
 
 
 
 
 
 
 
 
ASSET QUALITY RATIOS
 
 
 
 
 
 
 
 
 
 
Annualized Net Charge-offs to Average Loans
0.04
%
 
0.03
%
 
0.04
%
 
0.04
%
 
0.02
%
 
Allowance for Loan Losses to Period End Loans
0.78
%
 
0.79
%
 
1.04
%
 
 
 
 
 
Non-performing Assets to Period End Assets
0.33
%
 
0.25
%
 
0.26
%
 
 
 
 
 
Non-performing Loans to Period End Loans
0.48
%
 
0.35
%
 
0.37
%
 
 
 
 
 
Loans 30-89 Days Past Due to Period End Loans
0.45
%
 
0.34
%
 
0.21
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA
 
 
 
 
 
 
 
 
 
 
Average Assets
$
2,885,165

 
$
2,556,431

 
$
2,240,528

 
$
2,723,932

 
$
2,233,855

 
Average Earning Assets
$
2,684,386

 
$
2,411,195

 
$
2,109,509

 
$
2,547,791

 
$
2,102,912

 
Average Total Loans
$
1,935,246

 
$
1,694,643

 
$
1,456,699

 
$
1,814,944

 
$
1,450,328

 
Average Demand Deposits
$
502,070

 
$
457,516

 
$
420,341

 
$
484,793

 
$
423,853

 
Average Interest Bearing Liabilities
$
2,031,798

 
$
1,786,817

 
$
1,557,754

 
$
1,909,308

 
$
1,551,999

 
Average Equity
$
325,754

 
$
278,483

 
$
238,731

 
$
305,000

 
$
235,968

 
 
 
 
 
 
 
 
 
 
 
 
Period End Non-performing Assets (3)
$
9,734

 
$
7,103

 
$
5,763

 
 
 
 
 
Period End Non-performing Loans (4)
$
9,318

 
$
6,760

 
$
5,446

 
 
 
 
 
Period End Loans 30-89 Days Past Due (5)
$
8,764

 
$
6,562

 
$
3,025

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax Equivalent Net Interest Income
$
25,800

 
$
21,802

 
$
19,562

 
$
47,602

 
$
38,882

 
Net Charge-offs during Period
$
207

 
$
128

 
$
161

 
$
334

 
$
171

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(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.