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Segment Information
 9 Months Ended
Sep. 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 75 banking offices at September 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

 


 


 


 


 

September 30, 2019

 


 


 





 

Net Interest Income

$
39,302


$
4


$
5


$
(733
)

$
38,578

Net Gains on Sales of Loans

1,649


—


—


—


1,649

Net Gains on Securities

313


—


—


—


313

Trust and Investment Product Fees

1


1,884


—


—


1,885

Insurance Revenues

14


2


1,867


—


1,883

Noncash Items:













 

Provision for Loan Losses

2,800


—


—


—


2,800

Depreciation and Amortization

2,196


1


14


80


2,291

Income Tax Expense (Benefit)

3,025


137


51


(404
)

2,809

Segment Profit (Loss)

13,538


406


145


(1,025
)

13,064

Segment Assets at September 30, 2019

4,345,551


3,524


8,904


(2,097
)

4,355,882

 

 

Core
Banking

Trust and Investment Advisory Services

Insurance

Other

Consolidated Totals
Three Months Ended

 


 


 


 


 

September 30, 2018

 


 


 


 


 

Net Interest Income

$
28,755


$
2


$
3


$
(212
)

$
28,548

Net Gains on Sales of Loans

866


—


—


—


866

Net Gains on Securities

90


—


—


—


90

Trust and Investment Product Fees

1


1,584


—


—


1,585

Insurance Revenues

9


31


1,787


—


1,827

Noncash Items:

 


 


 


 


 

Provision for Loan Losses

500


—


—


—


500

Depreciation and Amortization

1,540


2


19


64


1,625

Income Tax Expense (Benefit)

2,825


109


52


(190
)

2,796

Segment Profit (Loss)

12,462


298


147


(268
)

12,639

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
Nine Months Ended
 
 

 
 

 
 

 
 

 
 

September 30, 2019
 
 

 
 

 
 

 
 
 
 

Net Interest Income
 
$
107,619

 
$
10

 
$
14

 
$
(1,833
)
 
$
105,810

Net Gains on Sales of Loans
 
3,660

 
—

 
—

 
—

 
3,660

Net Gains on Securities
 
984

 
—

 
—

 
—

 
984

Trust and Investment Product Fees
 
3

 
5,362

 
—

 
—

 
5,365

Insurance Revenues
 
21

 
27

 
6,969

 
—

 
7,017

Noncash Items:
 
 
 
 
 
 
 
 
 
 

Provision for Loan Losses
 
3,725

 
—

 
—

 
—

 
3,725

Depreciation and Amortization
 
6,099

 
4

 
53

 
208

 
6,364

Income Tax Expense (Benefit)
 
9,117

 
341

 
458

 
(1,348
)
 
8,568

Segment Profit (Loss)
 
43,105

 
993

 
1,382

 
(2,078
)
 
43,402

Segment Assets at September 30, 2019
 
4,345,551

 
3,524

 
8,904

 
(2,097
)
 
4,355,882

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

 
 

 
 

 
 

 
 

September 30, 2018
 
 

 
 

 
 

 
 
 
 

Net Interest Income
 
$
82,217

 
$
4

 
$
8

 
$
(602
)
 
$
81,627

Net Gains on Sales of Loans
 
2,421

 
—

 
—

 
—

 
2,421

Net Gains on Securities
 
434

 
—

 
—

 
—

 
434

Trust and Investment Product Fees
 
3

 
5,032

 
—

 
—

 
5,035

Insurance Revenues
 
15

 
35

 
6,403

 
—

 
6,453

Noncash Items:
 
 
 
 
 
 
 
 
 
 

Provision for Loan Losses
 
2,070

 
—

 
—

 
—

 
2,070

Depreciation and Amortization
 
3,971

 
4

 
59

 
192

 
4,226

Income Tax Expense (Benefit)
 
7,556

 
341

 
386

 
(677
)
 
7,606

Segment Profit (Loss)
 
34,702

 
952

 
1,116

 
(1,221
)
 
35,549

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

 
2,658

 
11,368

 
(11,178
)
 
3,929,090