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Segment Information
 6 Months Ended
Jun. 30, 2019
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 Bank, which operated through 66 banking offices at June 30, 2019. 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 the trust operations of the Company's banking subsidiary and by German American Investment Services, Inc. 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 the Company which are used by management to monitor and manage financial performance. 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
Three Months Ended

 


 


 


 


 

June 30, 2019

 


 


 





 

Net Interest Income

$
34,182


$
4


$
4


$
(549
)

$
33,641

Net Gains on Sales of Loans

1,030


—


—


—


1,030

Net Gains on Securities

516


—


—


—


516

Trust and Investment Product Fees

1


1,912


—


—


1,913

Insurance Revenues

4


4


1,921


—


1,929

Noncash Items:













 

Provision for Loan Losses

250


—


—


—


250

Depreciation and Amortization

1,976


2


21


64


2,063

Income Tax Expense (Benefit)

3,437


128


50


(604
)

3,011

Segment Profit (Loss)

15,068


372


147


(316
)

15,271

Segment Assets at June 30, 2019

3,944,736


3,324


8,784


13,895


3,970,739

 

 

Core
Banking

Trust and Investment Advisory Services

Insurance

Other

Consolidated Totals
Three Months Ended

 


 


 


 


 

June 30, 2018

 


 


 


 


 

Net Interest Income

$
27,672


$
(1
)

$
3


$
(205
)

$
27,469

Net Gains on Sales of Loans

905


—


—


—


905

Net Gains on Securities

74


—


—


—


74

Trust and Investment Product Fees

—


1,677


—


—


1,677

Insurance Revenues

5


2


1,689


—


1,696

Noncash Items:

 


 


 


 


 

Provision for Loan Losses

1,220


—


—


—


1,220

Depreciation and Amortization

1,316


1


21


64


1,402

Income Tax Expense (Benefit)

2,487


96


13


(270
)

2,326

Segment Profit (Loss)

11,478


269


30


(680
)

11,097

Segment Assets at December 31, 2018

3,926,242


2,658


11,368


(11,178
)

3,929,090


 
 
Core
Banking
 
Trust and Investment Advisory Services
 
Insurance
 
Other
 
Consolidated Totals
Six Months Ended
 
 

 
 

 
 

 
 

 
 

June 30, 2019
 
 

 
 

 
 

 
 
 
 

Net Interest Income
 
$
68,317

 
$
6

 
$
9

 
$
(1,100
)
 
$
67,232

Net Gains on Sales of Loans
 
2,011

 
—

 
—

 
—

 
2,011

Net Gains on Securities
 
671

 
—

 
—

 
—

 
671

Trust and Investment Product Fees
 
2

 
3,478

 
—

 
—

 
3,480

Insurance Revenues
 
7

 
25

 
5,102

 
—

 
5,134

Noncash Items:
 
 
 
 
 
 
 
 
 
 

Provision for Loan Losses
 
925

 
—

 
—

 
—

 
925

Depreciation and Amortization
 
3,903

 
3

 
39

 
128

 
4,073

Income Tax Expense (Benefit)
 
6,092

 
204

 
407

 
(944
)
 
5,759

Segment Profit (Loss)
 
29,567

 
587

 
1,237

 
(1,053
)
 
30,338

Segment Assets at June 30, 2019
 
3,944,736

 
3,324

 
8,784

 
13,895

 
3,970,739

 
 
Core
Banking
 
Trust and Investment Advisory Services
 
Insurance
 
Other
 
Consolidated Totals
Six Months Ended
 
 

 
 

 
 

 
 

 
 

June 30, 2018
 
 

 
 

 
 

 
 
 
 

Net Interest Income
 
$
53,462

 
$
2

 
$
5

 
$
(390
)
 
$
53,079

Net Gains on Sales of Loans
 
1,555

 
—

 
—

 
—

 
1,555

Net Gains on Securities
 
344

 
—

 
—

 
—

 
344

Trust and Investment Product Fees
 
2

 
3,448

 
—

 
—

 
3,450

Insurance Revenues
 
6

 
4

 
4,616

 
—

 
4,626

Noncash Items:
 
 
 
 
 
 
 
 
 
 

Provision for Loan Losses
 
1,570

 
—

 
—

 
—

 
1,570

Depreciation and Amortization
 
2,431

 
2

 
40

 
128

 
2,601

Income Tax Expense (Benefit)
 
4,731

 
232

 
334

 
(487
)
 
4,810

Segment Profit (Loss)
 
22,240

 
654

 
969

 
(953
)
 
22,910

Segment Assets at December 31, 2018
 
3,926,242

 
2,658

 
11,368

 
(11,178
)
 
3,929,090