EX-99 2 v073744_ex99.htm Unassociated Document


GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp, Inc.
Bradley M Rust, Senior Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314



Page 1 of 6



May 3, 2007                       GERMAN AMERICAN BANCORP, INC. REPORTS 1st QUARTER OPERATING RESULTS
 
 
German American Bancorp, Inc., Jasper, Indiana, (NASDAQ: GABC) reported today 1st quarter 2007 earnings of $1,479,000, or $0.13 per share.  
 
“Our reported results for the 1st quarter of 2007 certainly require looking behind the numbers to determine the strength of our operating results”, noted Mark Schroeder, President & CEO of German American Bancorp, Inc. “Our reported earnings include the impact of several events which while having an adverse effect on the 1st quarter results, positions the Company very well in terms of future performance potential.”

Schroeder continued, “We strongly believe that, driven by what is now a clean loan portfolio, strong loan and balance sheet growth, continued revenue growth, and market expansion opportunities from our new banking office in the economically vibrant Bloomington, Indiana market, German American is poised to continue its recent trend of strong financial performance in the coming quarters.”
 
The comparison of the Company’s 1st quarter 2007 results, with that of the prior year’s same period earnings of $2,563,000 or $0.23 per share, were significantly affected by the costs associated with the previously reported resolution of a non-performing hotel facilities credit. Late in the 1st quarter, the Company gained control of the facilities which were subsequently sold on April 20, 2007. These credit-related costs included increased provision for loan losses of $1.3 million in direct charges related to the valuation of the properties, an additional $160,000 in indirect provision charges due to the impact on the Company’s historical loss ratios and resulting reserve levels, and collection costs of $110,000. In total, the after-tax cost during the 1st quarter associated with the resolution of this matter was $948,000.   



 
 
 
GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp, Inc.
Bradley M Rust, Senior Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314



Page 2 of 6
 
The 1st quarter 2007 results also included the start-up costs associated with the opening of the Company’s new Bloomington, Indiana banking office on February 1, 2007. These start-up expenses totaled approximately $200,000 during the 1st quarter. Further, the Company’s contingency commission income within its insurance operations recorded in the 1st quarter of the current year was $30,000, compared to the $271,000 recorded in the 1st quarter of last year. Total insurance revenues increased $83,000 from 2006 to 2007, despite the aforementioned decrease in contingency commission income.

Positively impacting the 1st quarter results was a $499,000 increase in net interest income as compared to the Company’s level of net interest income in the same period last year. This net interest income increase was driven by a 15% increase in the average loans outstanding during the 3 month period ending on March 31, 2007, compared with the same period of the prior year.

The Company’s 2007 1st quarter results are also reflective of the operating results of the acquisition of Keach & Grove Insurance based in Bedford, Indiana as of October 1, 2006.
   
The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.14 per share which will be payable on May 20, 2007 to shareholders of record as of May 10, 2007.

 
*****

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 through six community banking affiliates with 30 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 operates from its banking offices and a full line property and casualty insurance agency with six insurance agency offices throughout its market area.
*****
 
 
 
 
GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp, Inc.
Bradley M Rust, Senior Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314



Page 3 of 6
Forward-Looking Statements
 
German American’s statements in this press release regarding its outlook for its future financial performance (including potential loan, balance sheet and revenue growth, its loan portfolio quality, and market expansion opportunities associated with its new Bloomington, Indiana, office) are “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 the press release.  Factors which could cause actual results and experience to differ from these expectations 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; changes in general economic conditions, either nationally or locally, resulting in, among other things, credit quality deterioration; capital management activities; actions of the Federal Reserve Board; changes in accounting principles and interpretations; and 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.

NEWS RELEASE

For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp, Inc.
Bradley M Rust, Senior Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314



Page 4 of 6
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)

Consolidated Balance Sheets
  
           
           
   
March 31,
  
   
2007
  
2006
  
           
ASSETS
          
Cash and Due from Banks
 
$
21,175
  
$
29,067
  
Short-term Investments
   
3,394
   
26,662
 
Investment Securities
    
173,192
   
202,580
 
               
Loans Held-for-Sale
    
2,009
   
2,186
 
               
Loans, Net of Unearned Income
    
810,789
   
683,330
 
Allowance for Loan Losses
    
(7,620
)
  
(9,721
)
Net Loans
    
803,169
   
673,609
 
               
Stock in FHLB and Other Restricted Stock
    
10,621
   
14,483
 
Premises and Equipment
    
23,873
   
22,422
 
Goodwill and Other Intangible Assets
    
14,356
   
13,014
 
Other Assets
    
39,248
   
41,093
 
TOTAL ASSETS
  
$
1,091,037
  
$
1,025,116
  
               
LIABILITIES
              
Non-interest-bearing Demand Deposits
  
$
138,709
  
$
137,603
  
Interest-bearing Demand, Savings, and
              
Money Market Accounts
    
315,820
   
314,523
 
Time Deposits
    
426,800
   
355,448
 
Total Deposits
    
881,329
   
807,574
 
               
Borrowings
    
103,395
   
117,468
 
Other Liabilities
    
13,707
   
12,207
 
TOTAL LIABILITIES
    
998,431
   
937,249
 
               
SHAREHOLDERS' EQUITY
              
Common Stock and Surplus
    
79,300
   
79,065
 
Retained Earnings
    
13,387
   
10,415
 
Accumulated Other Comprehensive Loss
    
(81
)
  
(1,613
)
TOTAL SHAREHOLDERS' EQUITY
    
92,606
   
87,867
 
               
TOTAL LIABILITIES AND
              
SHAREHOLDERS' EQUITY
  
$
1,091,037
  
$
1,025,116
  
               
END OF PERIOD SHARES OUTSTANDING
    
11,029,612
   
11,006,904
 
               
BOOK VALUE PER SHARE
  
$
8.40
  
$
7.98
  
 
 

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp, Inc.
Bradley M Rust, Senior Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314



Page 5 of 6

GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)

Consolidated Statements of Income
  
           
   
Three Months Ended
  
   
March 31,
  
   
2007
  
2006
  
           
INTEREST INCOME
          
Interest and Fees on Loans
 
$
15,067
  
$
12,382
  
Interest on Short-term Investments
   
120
   
126
 
Interest and Dividends on Investment Securities
    
2,142
   
2,240
 
TOTAL INTEREST INCOME
    
17,329
   
14,748
 
               
INTEREST EXPENSE
              
Interest on Deposits
   
6,430
   
4,482
 
Interest on Borrowings
    
1,524
   
1,390
 
TOTAL INTEREST EXPENSE 
    
7,954
   
5,872
 
               
NET INTEREST INCOME
   
9,375
   
8,876
 
Provision for Loan Losses
    
1,928
   
290
 
NET INTEREST INCOME AFTER
              
PROVISION FOR LOAN LOSSES
    
7,447
   
8,586
 
               
NON-INTEREST INCOME
              
Net Gain on Sales of Loans and Related Assets
    
178
   
213
 
Net Gain / (Loss) on Securities
    
-
   
-
 
Other Non-interest Income
    
3,732
   
3,583
 
TOTAL NON-INTEREST INCOME 
    
3,910
   
3,796
 
               
NON-INTEREST EXPENSE
              
Salaries and Benefits
    
5,503
   
5,184
 
Other Non-interest Expenses
    
3,931
   
3,621
 
TOTAL NON-INTEREST EXPENSE
    
9,434
   
8,805
 
               
Income before Income Taxes
    
1,923
   
3,577
 
Income Tax Expense
    
444
   
1,014
 
           
NET INCOME
  
$
1,479
  
$
2,563
  
               
EARNINGS PER SHARE & DILUTED EARNINGS PER SHARE
  
$
0.13
  
$
0.23
  
               
               
WEIGHTED AVERAGE SHARES OUTSTANDING
    
11,008,562
   
10,993,232
 
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING
    
11,016,930
   
10,996,058
 
 
 

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp, Inc.
Bradley M Rust, Senior Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314



Page 6 of 6

GERMAN AMERICAN BANCORP, INC.
  
(unaudited, dollars in thousands except per share data)
  
           
           
   
Three Months Ended
  
   
March 31
  
   
2007
  
2006
  
EARNINGS PERFORMANCE RATIOS
          
Annualized Return on Average Assets
    
0.54
%
  
1.02
%
Annualized Return on Average Equity
    
6.37
%
  
11.69
%
Net Interest Margin
    
3.86
%
  
4.03
%
Efficiency Ratio (1)
    
70.08
%
  
67.96
%
Net Overhead Expense to Average Earning Assets (2)
    
2.21
%
  
2.18
%
               
ASSET QUALITY RATIOS
              
Annualized Net Charge-offs to Average Loans
    
0.72
%
  
0.18
%
Allowance for Loan Losses to Period End Loans
    
0.94
%
  
1.42
%
Non-performing Assets to Period End Assets
    
0.83
%
  
1.56
%
Non-performing Loans to Period End Loans
    
0.75
%
  
2.17
%
               
               
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA
              
Average Assets
  
$
1,090,037
  
$
1,004,556
  
Average Earning Assets
  
$
998,195
  
$
916,982
  
Average Total Loans
  
$
799,238
  
$
692,844
  
Average Demand Deposits
  
$
133,499
  
$
132,713
  
Average Interest Bearing Liabilities
  
$
850,386
  
$
770,549
  
Average Equity
  
$
92,808
  
$
87,685
  
               
Period End Non-performing Assets (3)
  
$
9,102
  
$
15,942
  
Period End Non-performing Loans (4)
  
$
6,114
  
$
14,816
  
               
Tax Equivalent Net Interest Income
  
$
9,552
  
$
9,160
  
Net Charge-offs during Period
  
$
1,437
  
$
318
  
               

(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.