JASPER, Ind., Jan. 27, 2010 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (Nasdaq:GABC) today reported yet another quarter of strong earnings, posting 4th quarter net income of $3,321,000, or $0.30 per share. This represents the second highest level of quarterly earnings in the Company's history, exceeded only by the quarterly earnings recorded in the 4th quarter of 2008. Inclusive of the strong 4th quarter results, 2009 reported earnings were $12,218,000, or $1.10 per share. This level of annual earnings also represents the second highest reported annual financial performance in the Company's history
In the face of a more difficult economic and operating environment in the current year, the strong level of 2009 annual earnings was only approximately 5% under the record net income of $12,803,000, or $1.16 per share, earned in 2008. The Company's current year performance was enhanced by a $3.6 million, or nearly a 9%, improvement in net interest income. This improvement in net interest income resulted from the combination of an increase in the Company's average balance of loans and investments of approximately $62 million, or nearly 6%, and an increase in the net interest margin to 3.95% as compared to 3.82% in 2008.
The Company also strengthened its level of loan loss reserves by adding approximately $1.5 million to its allowance for loan losses during the year, while the provision for loan losses was approximately $250 thousand less than what was required in provision expense in 2008. The Company also significantly enhanced its capital position during 2009. Largely as a result of the strong 2009 retained earnings, the Company's capital strength, in the form of total shareholders' equity, increased by $8.4 million, or nearly 8%, during the year.
In a direct reflection of the weakened economic environment in which the Company operated during 2009, revenues and fees generated from the Company's insurance, investment, and trust activities declined by approximately $1.7 million, or nearly 20%, during the year while fees derived from deposit service charges declined by $500 thousand, or 11%. Additionally, the Company experienced approximately $1.7 million in additional operating expenses due to significant increases in the level of FDIC insurance premiums, resulting from an industry-wide increase in deposit insurance assessments as the FDIC began charging higher deposit insurance premiums to all depository institutions, including healthy banks, in order to recapitalize the deposit insurance fund. Additionally, the Company experienced approximately $1.0 million in higher health insurance costs in 2009 due to elevated claims experience within the Company's partially self-insured health insurance plan.
Mark A. Schroeder, Chief Executive Officer of German American, commenting on the 2009 financial results stated, "We continue to be very pleased that, in the face of a very difficult economic and operating environment, we were able to yet again post a very strong quarter and year in terms of earnings performance. German American's ability to achieve the two best years in our history in terms of financial performance during 2008 and 2009 stands in contrast to the majority of the banking industry, in which many companies posted the two worst years in their history during this same time period. The achievement of this feat didn't occur by accident, but rather it is the cumulative result of years of hard work and steadfast commitment to conservative, time-tested financial management strategies by a talented and dedicated group of financial professionals.
"German American's superior operating performance in the face of the current economic challenges is being recognized on both a regional and national level, culminating with an invitation to participate in a meeting at the White House with President Obama and key members of his Administration late in the 4th quarter. At the meeting, German American was one of only 12 community banks from throughout the country from which the Administration sought input relative to the challenges and opportunities facing community banks in the current economic environment."
Schroeder continued, "It was most certainly an honor for our organization to be invited to participate in the meeting with the President, and we appreciate the positive response we received regarding our performance from the financial media and the strong level of stock performance we enjoyed during 2009, but we also recognize that we are not immune from the effect of a continued stagnant economic environment. That said, we firmly believe that our management philosophy will serve us well in both good and more difficult times, and that, executed effectively, the conservative, time-tested financial management strategies derived from that philosophy will consistently deliver the achievement of our overall goal of superior top-quartile financial performance when compared to peer Midwestern banking companies."
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 February 20, 2010 to shareholders of record as of February 10, 2010.
German American Bancorp, Inc. is a financial services holding company based in Jasper, Indiana. The Company's Common Stock is traded on NASDAQ's Global Select Market System under the symbol GABC. The principal subsidiary of German American Bancorp, Inc. is its banking subsidiary, German American Bancorp, which operates 28 retail banking offices in the ten contiguous Southern Indiana counties of Daviess, Dubois, Gibson, Knox, Lawrence, Martin, Monroe, Perry, Pike, and Spencer. German American Bancorp owns a trust, brokerage and financial planning subsidiary which operate from its banking offices and a full line property and casualty insurance agency with seven insurance agency offices throughout its market area.
Balance Sheet Highlights
End-of-period loans outstanding declined 4% on an annualized basis during the fourth quarter of 2009 compared with the quarter-ended September 30, 2009 and approximately 1% during the year-ended December 31, 2009 compared with the year ended 2008. The overall decline in the level of loans has largely been driven by soft loan demand in the commercial and consumer portfolios attributable to a difficult and cautious economic environment. The decline in the residential portfolio was attributable to the significant refinance activity throughout 2009 in a historically low interest rate environment in which the Company sold the majority of its residential mortgage loan production into the secondary market.
*Non-performing loans totaled $8.8 million at December 31, 2009 compared to $9.9 million of non-performing loans at September 30, 2009. Non-performing loans represented 1.00% of total outstanding loans at December 31, 2009 compared with 1.12% of total loans outstanding at September 30, 2009. The majority of this decline was the result of a single commercial real estate loan that migrated from the non-performing loan category to other real estate as of year-end 2009. Non-performing loans totaled $8.4 million at year-end 2008 or 0.94% of total loans outstanding at December 31, 2008.
End of Period Loan
Balances
------------------
Annualized
12/31/09 09/30/09 $ Change % Change
---------- ---------- ---------- ----------
Commercial &
Industrial Loans $ 523,217 $ 529,868 $ (6,651) -5%
Agricultural Loans 156,845 152,758 4,087 11%
Consumer Loans 114,736 119,489 (4,753) -16%
Residential Mortgage
Loans 84,677 87,099 (2,422) -11%
---------- ---------- ----------
$ 879,475 $ 889,214 $ (9,739) -4%
========== ========== ==========
End of Period Loan
Balances
------------------ Annual
12/31/09 12/31/08 $ Change % Change
----------------------- -----------------------
Commercial &
Industrial Loans $ 523,217 $ 505,191 $ 18,026 4%
Agricultural Loans 156,845 159,923 (3,078) -2%
Consumer Loans 114,736 127,343 (12,607) -10%
Residential Mortgage
Loans 84,677 100,054 (15,377) -15%
---------- ---------- ----------
$ 879,475 $ 892,511 $ (13,036) -1%
========== ========== ==========
The Company's allowance for loan losses totaled $11.0 million at December 31, 2009, an increase of $228,000 or 2%, compared with $10.8 million at September 30, 2009. The allowance for loan losses represented 1.25% of period end loans at December 31, 2009 compared with 1.22% at September 30, 2009. The allowance for loan losses represented 125% of period end non-performing loans at December 31, 2009 and 109% of period end non-performing loans at September 30, 2009. The allowance for loan loss totaled $9.5 million at year-end 2008 and represented 1.07% of total loans and 114% of non-performing loans at December 31, 2008.
End-of-period deposits increased approximately 3% during both the quarter-ended and year-ended December 31, 2009 compared with the quarter ended September 30, 2009 and year ended December 31, 2008. The increase was attributable to growth of the Company's core deposit base throughout its primary market area.
End of Period Deposit
Balances
---------------------
Annualized
12/31/09 09/30/09 $ Change % Change
---------- ---------- ---------- ----------
Non-interest-bearing
Demand Deposits $ 155,268 $ 147,704 $ 7,564 20%
Interest-bearing
Demand, Savings,
& Money Market
Accounts 484,699 475,506 9,193 8%
Time Deposits
< $100,000 256,401 253,082 3,319 5%
Time Deposits of
$100,000 or more &
Brokered Deposits 73,275 85,046 (11,771) -55%
---------- ---------- ----------
$ 969,643 $ 961,338 $ 8,305 3%
========== ========== ==========
End of Period Deposit
Balances
--------------------- Annual
12/31/09 12/31/08 $ Change % Change
---------- ---------- ---------- ----------
Non-interest-bearing
Demand Deposits $ 155,268 $ 147,977 $ 7,291 5%
Interest-bearing
Demand, Savings, &
Money Market Accounts 484,699 439,305 45,394 10%
Time Deposits
< $100,000 256,401 250,339 6,062 2%
Time Deposits of
$100,000 or more &
Brokered Deposits 73,275 104,129 (30,854) -30%
---------- ---------- ----------
$ 969,643 $ 941,750 $ 27,893 3%
========== ========== ==========
Results of Operations Highlights
Year ended December 31, 2009 compared to year ended December 31, 2008
Net income for the year ended December 31, 2009 totaled $12,218,000, a decrease of $585,000 or 5% from the year ended December 31, 2008 net income of $12,803,000.
Summary Average
Balance Sheet
---------------
(Tax-equivalent
basis / $ in
Thousands)
Year Ended Year Ended
December 31, 2009 December 31, 2008
------------------------- -------------------------
Principal Income/ Yield/ Principal Income/ Yield/
Balance Expense Rate Balance Expense Rate
---------- ------- ------ ---------- ------- ------
Assets
------
Federal Funds
Sold and Other
Short-term
Investments $ 41,085 $ 106 0.26% $ 35,064 $ 593 1.69%
Securities 215,994 10,274 4.76% 170,771 9,171 5.37%
Loans and Leases 891,322 54,166 6.08% 880,630 58,669 6.66%
---------- ------- ---------- -------
Total Interest
Earning Assets $1,148,401 $64,546 5.62% $1,086,465 $68,433 6.30%
========== ======= ========== =======
Liabilities
-----------
Demand Deposit
Accounts $ 149,673 $ 140,962
Interest-bearing
Demand, Savings,
and Money Market
Accounts $ 473,214 $ 3,241 0.68% $ 422,060 $ 6,846 1.62%
Time Deposits 341,041 10,254 3.01% 359,115 14,366 4.00%
FHLB Advances and
Other Borrowings 143,332 5,728 4.00% 138,888 5,696 4.10%
---------- ------- ---------- -------
Total Interest-
Bearing
Liabilities $ 957,587 $19,223 2.01% $ 920,063 $26,908 2.92%
========== ======= ========== =======
Cost of Funds 1.67% 2.48%
Net Interest
Income $45,323 $41,525
Net Interest Margin 3.95% 3.82%
During the year ended December 31, 2009, net interest income totaled $44,513,000, representing an increase of $3,576,000 or 9% from the year ended December 31, 2008. The tax equivalent net interest margin for the year ended 2009 was 3.95% compared to 3.82% in 2008.
The provision for loan loss totaled $3,750,000 during the year ended December 31, 2009, representing a decline of $240,000 or 6% from the year ended December 31, 2008. During 2009, the provision for loan loss represented approximately 42 basis points of average loans while net charge-offs represented approximately 25 basis points of average loans.
During the year ended December 31, 2009, non-interest income declined approximately 13% from the year ended December 31, 2008.
Non-interest Income
-------------------
Year Year
Ended Ended
12/31/09 12/31/08 $ Change % Change
---------- ---------- ---------- ----------
Trust and Investment
Product Fees $ 1,617 $ 2,288 $ (671) -29%
Service Charges on
Deposit Accounts 4,395 4,920 (525) -11%
Insurance Revenues 5,296 6,306 (1,010) -16%
Company Owned Life
Insurance 1,104 791 313 40%
Other Operating Income 2,110 2,412 (302) -13%
---------- ---------- ----------
Subtotal 14,522 16,717 (2,195) -13%
Net Gains on Sales of
Loans and Related
Assets 1,760 1,399 361 26%
Net Gain (Loss) on
Securities (423) 94 (517) n/m
---------- ---------- ----------
Total Non-interest
Income $ 15,859 $ 18,210 $ (2,351) -13%
========== ========== ==========
n/m = not meaningful
Trust and investment product fees decreased 29% during the year ended December 31, 2009 compared with the year ended December 31, 2008. This decline was primarily attributable to continued difficult market conditions and changes in customers' investment preferences. Deposit service charges and fees declined by 11% due in large part to less customer utilization of the Company's overdraft protection program. Insurance revenues declined 16% during the year ended December 31, 2009 compared with 2008. The decline was largely attributable to a decrease in contingency revenue and lower levels of commercial insurance revenues from the Company's property and casualty insurance subsidiary. Company owned life insurance income increased 40% during 2009 compared with 2008 resulting from death benefits received from life insurance policies during 2009.
During 2009, the net gain on sale of residential loans increased 26% from the gain recognized in 2008 driven largely by a higher level of loans sold into the secondary market during 2009 as compared to 2008. The net loss on securities during 2009 was related to the recognition of other-than-temporary impairment charges on the Company's portfolio of non-controlling investments in other banking organizations.
During the year ended December 31, 2009, non-interest expense increased approximately 10% compared with year ended December 31, 2008.
Non-interest Expense
--------------------
Year Year
Ended Ended
12/31/09 12/31/08 $ Change % Change
---------- ---------- ---------- ----------
Salaries and Employee
Benefits $ 21,961 $ 20,786 $ 1,175 6%
Occupancy, Furniture
and Equipment Expense 6,035 5,677 358 6%
FDIC Premiums 1,863 209 1,654 791%
Data Processing Fees 1,368 1,493 (125) -8%
Professional Fees 1,740 1,670 70 4%
Advertising and
Promotion 993 1,078 (85) -8%
Intangible Amortization 909 889 20 2%
Other Operating
Expenses 5,522 4,914 608 12%
---------- ---------- ----------
Total Non-interest
Expense $ 40,391 $ 36,716 $ 3,675 10%
========== ========== ==========
Salaries and benefits expense increased approximately 6% during 2009 compared with 2008. The increase was primarily the result of increased costs associated with the Company's partially self-insured health insurance plan. Occupancy, furniture and equipment expense increased 6% during 2009 compared with 2008 due in large part to depreciation expense associated with renovations of existing branch facilities and upgrades to and purchases of information technology systems.
The Company's FDIC deposit insurance assessments increased 791% during the year-ended December 31, 2009 compared with the same period of 2008. This increase resulted from an industry-wide increase in quarterly assessments as the FDIC began to recapitalize the deposit insurance fund, in addition 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.
Other operating expenses increased by 12% during the year ended December 31, 2009 compared with 2008. The increase was largely attributable to an increased level of loan collection costs during 2009 and to amortization expense related to a new markets tax credit project in which the Company invested in the fourth quarter of 2009.
Quarter ended December 31, 2009 compared to quarter ended September 30, 2009
Net income for the quarter ended December 31, 2009 totaled $3,321,000, an increase of $130,000 or 4% from third quarter 2009 net income of $3,191,000.
Summary Average
Balance Sheet
---------------
(Tax-equivalent
basis / $ in
Thousands)
Quarter Ended Quarter Ended
December 31, 2009 September 30, 2009
------------------------- -------------------------
Principal Income/ Yield/ Principal Income/ Yield/
Balance Expense Rate Balance Expense Rate
--------- ------- ------ ---------- ------- ------
Assets
------
Federal Funds
Sold and Other
Short-term
Investments $ 74,452 $ 42 0.22% $ 36,627 $ 25 0.27%
Securities 230,417 2,557 4.44% 216,013 2,570 4.76%
Loans and Leases 890,740 13,414 5.98% 903,917 13,773 6.05%
--------- ------- ---------- -------
Total Interest
Earning Assets $1,195,609 $16,013 5.32% $1,156,557 $16,368 5.63%
========== ======= ========== =======
Liabilities
-----------
Demand Deposit
Accounts $ 156,644 $ 147,437
Interest-bearing
Demand, Savings,
and Money Market
Accounts $ 507,124 $ 736 0.58% $ 481,052 $ 822 0.68%
Time Deposits 337,294 2,290 2.69% 336,251 2,307 2.72%
FHLB Advances and
Other Borrowings 151,602 1,497 3.92% 149,602 1,549 4.11%
--------- ------- ---------- -------
Total Interest-
Bearing
Liabilities $ 996,020 $ 4,523 1.80% $ 966,905 $ 4,678 1.92%
========== ======= ========== =======
Cost of Funds 1.50% 1.61%
Net Interest
Income $11,490 $11,690
Net Interest Margin 3.82% 4.02%
During the quarter ended December 31, 2009, net interest income totaled $11,274,000, representing a decrease of $207,000 or 2% compared with the third quarter of 2009. The tax equivalent net interest margin for the fourth quarter 2009 was 3.82% compared with 4.02% in the third quarter of 2009. The decline in net interest income and net interest margin was attributable to lower outstanding loan balances and increased levels of core deposits that during much of the fourth quarter 2009 had not been fully invested into the Company's securities portfolio.
The provision for loan loss totaled $750,000 during the quarter ended December 31, 2009, representing a decline of $500,000 or 40% from the third quarter of 2009. During the fourth quarter of 2009, the annualized provision for loan loss represented approximately 34 basis points of average loans while net charge-offs represented approximately 23 basis points of average loans.
During the quarter ended fourth quarter of 2009, non-interest income decreased approximately 8% from the third quarter of 2009.
Non-interest Income
-------------------
Qtr Ended Qtr Ended
12/31/09 09/30/09 $ Change % Change
---------- ---------- ---------- ----------
Trust and Investment
Product Fees $ 305 $ 465 $ (160) -34%
Service Charges on
Deposit Accounts 1,124 1,131 (7) -1%
Insurance Revenues 1,265 1,254 11 1%
Company Owned Life
Insurance 466 200 266 133%
Other Operating Income 643 595 48 8%
---------- ---------- ----------
Subtotal 3,803 3,645 158 4%
Net Gains on Sales of
Loans and Related
Assets 323 411 (88) -21%
Net Gain (Loss) on
Securities (389) -- (389) --%
---------- ---------- ----------
Total Non-interest
Income $ 3,737 $ 4,056 $ (319) -8%
========== ========== ==========
Trust and investment product fees decreased 34% during the quarter ended December 31, 2009 compared with the third quarter of 2009. This decline was primarily attributable to continued difficult market conditions and internal reorganizations including a change in the Company's broker/dealer relationship for retail investment products. Company owned life insurance income increased 133% during the fourth quarter of 2009 compared with the third quarter of 2009 resulting from death benefits received from life insurance policies during the quarter ended December 31, 2009. The net loss on securities during the fourth quarter of 2009 was the result of the recognition of other-than-temporary impairment charges on the Company's portfolio of non-controlling investments in other banking organizations.
During the quarter ended December 31, 2009, non-interest expense increased approximately 2% compared with the third quarter of 2009.
Non-interest Expense
--------------------
Qtr Ended Qtr Ended
12/31/09 09/30/09 $ Change % Change
---------- ---------- ---------- ----------
Salaries and Employee
Benefits $ 5,405 $ 5,427 $ (22) --%
Occupancy, Furniture
and Equipment Expense 1,504 1,532 (28) -2%
FDIC Premiums 313 330 (17) -5%
Data Processing Fees 346 321 25 8%
Professional Fees 443 285 158 55%
Advertising and
Promotion 240 266 (26) -10%
Intangible Amortization 232 235 (3) -1%
Other Operating
Expenses 1,675 1,523 152 10%
---------- ---------- ----------
Total Non-interest
Expense $ 10,158 $ 9,919 $ 239 2%
========== ========== ==========
Salaries and benefits expense remained stable during the fourth quarter of 2009 compared with the third quarter of 2009. Professional fees increased 55% during the quarter ended December 31, 2009 compared with the third quarter of 2009. This increase was primarily attributable to an increased level of legal fees.
Other operating expenses increased by 10% during the fourth quarter of 2009 compared with the third quarter of 2009. The increase was largely attributable to an increased level of loan collection costs during the fourth quarter 2009 and to amortization expense related to a new markets tax credit project in which the Company invested in the fourth quarter of 2009. The increase was partially mitigated by reduced loss claims activity at the Company's captive insurance company.
Forward Looking Statements
The Company's statement in this press release regarding the Company's expectations concerning achieving its goal of superior top quartile financial performance when compared to peer Midwestern banking companies is a "forward-looking statement" 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 the Department of the Treasury and the Federal Deposit Insurance Corporation under the Emergency Economic Stabilization Act of 2008 and the Federal Deposit Insurance Act 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
----------------------------------------------------------------------
December 31, September 30, December 31,
2009 2009 2008
------------- ------------- -------------
ASSETS
Cash and Due from Banks $ 16,052 $ 19,137 $ 17,201
Short-term Investments 12,002 40,813 27,791
Investment Securities 253,714 206,502 179,166
Loans Held-for-Sale 5,706 8,105 3,166
Loans, Net of Unearned
Income 877,822 887,449 890,436
Allowance for Loan Losses (11,016) (10,788) (9,522)
------------- ------------- -------------
Net Loans 866,806 876,661 880,914
Stock in FHLB and Other
Restricted Stock 10,621 10,621 10,621
Premises and Equipment 22,153 22,237 22,330
Goodwill and Other
Intangible Assets 12,273 12,505 12,796
Other Assets 43,638 37,234 36,843
------------- ------------- -------------
TOTAL ASSETS $ 1,242,965 $ 1,233,815 $ 1,190,828
============= ============= =============
LIABILITIES
Non-interest-bearing
Demand Deposits $ 155,268 $ 147,704 $ 147,977
Interest-bearing Demand,
Savings, and Money
Market Accounts 484,699 475,506 439,305
Time Deposits 329,676 338,128 354,468
------------- ------------- -------------
Total Deposits 969,643 961,338 941,750
Borrowings 148,121 147,199 131,664
Other Liabilities 11,652 12,888 12,240
------------- ------------- -------------
TOTAL LIABILITIES 1,129,416 1,121,425 1,085,654
------------- ------------- -------------
SHAREHOLDERS' EQUITY
Common Stock and Surplus 79,893 79,764 79,401
Retained Earnings 29,041 27,272 23,019
Accumulated Other
Comprehensive Income 4,615 5,354 2,754
------------- ------------- -------------
TOTAL SHAREHOLDERS'
EQUITY 113,549 112,390 105,174
------------- ------------- -------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 1,242,965 $ 1,233,815 $ 1,190,828
============= ============= =============
END OF PERIOD SHARES
OUTSTANDING 11,077,382 11,077,382 11,030,288
BOOK VALUE PER SHARE $ 10.25 $ 10.15 $ 9.54
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Statements of Income
---------------------------------------------------------------------
Three Months Ended Year Ended
December September December December December
31, 2009 30, 2009 31, 2008 31, 2009 31, 2008
----------- ----------- ----------- ----------- -----------
INTEREST
INCOME
Interest
and Fees
on Loans $ 13,332 $ 13,706 $ 14,178 $ 53,905 $ 58,477
Interest
on Short-
term
Invest-
ments 42 25 27 106 593
Interest
and Divi-
dends
on
Invest-
ment
Secur-
ities 2,423 2,428 2,308 9,725 8,775
----------- ----------- ----------- ----------- -----------
TOTAL
INTEREST
INCOME 15,797 16,159 16,513 63,736 67,845
----------- ----------- ----------- ----------- -----------
INTEREST
EXPENSE
Interest
on
Deposits 3,026 3,129 4,808 13,495 21,212
Interest
on
Borrow-
ings 1,497 1,549 1,398 5,728 5,696
----------- ----------- ----------- ----------- -----------
TOTAL
INTEREST
EXPENSE 4,523 4,678 6,206 19,223 26,908
----------- ----------- ----------- ----------- -----------
NET
INTEREST
INCOME 11,274 11,481 10,307 44,513 40,937
Provision
for Loan
Losses 750 1,250 874 3,750 3,990
----------- ----------- ----------- ----------- -----------
NET
INTEREST
INCOME
AFTER
PROVISION
FOR LOAN
LOSSES 10,524 10,231 9,433 40,763 36,947
----------- ----------- ----------- ----------- -----------
NON-
INTEREST
INCOME
Net Gain
on Sales
of Loans
and
Related
Assets 323 411 341 1,760 1,399
Net Gain
(Loss) on
Secur-
ities (389) -- (85) (423) 94
Other Non-
interest
Income 3,803 3,645 4,105 14,522 16,717
----------- ----------- ----------- ----------- -----------
TOTAL
NON-
INTEREST
INCOME 3,737 4,056 4,361 15,859 18,210
----------- ----------- ----------- ----------- -----------
NON-
INTEREST
EXPENSE
Salaries
and
Benefits 5,405 5,427 5,116 21,961 20,786
Other Non-
interest
Expenses 4,753 4,492 4,108 18,430 15,930
----------- ----------- ----------- ----------- -----------
TOTAL
NON-
INTEREST
EXPENSE 10,158 9,919 9,224 40,391 36,716
----------- ----------- ----------- ----------- -----------
Income
before
Income
Taxes 4,103 4,368 4,570 16,231 18,441
Income Tax
Expense 782 1,177 1,217 4,013 5,638
----------- ----------- ----------- ----------- -----------
NET
INCOME $ 3,321 $ 3,191 $ 3,353 $ 12,218 $ 12,803
=========== =========== =========== =========== ===========
EARNINGS
PER SHARE
& DILUTED
EARNINGS
PER
SHARE $ 0.30 $ 0.29 $ 0.30 $ 1.10 $ 1.16
WEIGHTED
AVERAGE
SHARES
OUT-
STANDING 11,077,382 11,075,709 11,029,624 11,065,917 11,029,519
DILUTED
WEIGHTED
AVERAGE
SHARES
OUT-
STANDING 11,085,472 11,084,768 11,030,243 11,068,988 11,029,911
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Three Months Ended Year Ended
December September December December December
31, 2009 30, 2009 31, 2008 31, 2009 31, 2008
------------------------------- ---------------------
EARNINGS
PERFORMANCE
RATIOS
Annualized
Return on
Average
Assets 1.04% 1.03% 1.12% 0.99% 1.09%
Annualized
Return on
Average
Equity 11.69% 11.59% 13.15% 11.12% 12.84%
Net Interest
Margin 3.82% 4.02% 3.76% 3.95% 3.82%
Efficiency
Ratio (1) 66.71% 63.00% 62.13% 66.02% 61.46%
Net Overhead
Expense to
Average
Earning
Assets (2) 2.15% 2.03% 1.75% 2.14% 1.70%
ASSET QUALITY
RATIOS
Annualized Net
Charge-offs
to Average
Loans 0.23% 0.33% 0.32% 0.25% 0.29%
Allowance for
Loan Losses
to Period End
Loans 1.25% 1.22% 1.07%
Non-performing
Assets to
Period End
Assets 0.90% 1.03% 0.85%
Non-performing
Loans to
Period End
Loans 1.00% 1.12% 0.94%
Loans 30-89
Days Past Due
to Period End
Loans 0.64% 0.81% 0.91%
SELECTED
BALANCE SHEET
& OTHER
FINANCIAL DATA
Average
Assets $1,279,199 $1,238,386 $1,201,263 $1,230,596 $1,174,583
Average
Earning
Assets $1,195,609 $1,156,557 $1,113,173 $1,148,401 $1,086,465
Average
Total
Loans $ 890,740 $ 903,917 $ 892,435 $ 891,322 $ 880,630
Average Demand
Deposits $ 156,644 $ 147,437 $ 149,137 $ 149,673 $ 140,962
Average
Interest
Bearing
Liabilities $ 996,020 $ 966,905 $ 937,170 $ 957,587 $ 920,063
Average
Equity $ 113,640 $ 110,151 $ 101,973 $ 109,887 $ 99,711
Period End
Non-
performing
Assets (3) $ 11,156 $ 12,676 $ 10,168
Period End
Non-
performing
Loans (4) $ 8,793 $ 9,928 $ 8,350
Period End
Loans 30-89
Days Past
Due (5) $ 5,625 $ 7,152 $ 8,061
Tax Equivalent
Net Interest
Income $ 11,490 $ 11,690 $ 10,486 $ 45,323 $ 41,525
Net Charge-
offs during
Period $ 522 $ 757 $ 710 $ 2,256 $ 2,512
(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.