EX-99 2 v081808_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
 
 

July 25, 2007
GERMAN AMERICAN BANCORP, INC. REPORTS 2ND QUARTER EARNINGS INCREASE
 
German American Bancorp, Inc., Jasper, Indiana, (NASDAQ: GABC) today reported 2nd quarter 2007 earnings of $2,643,000, or $0.24 per share, a 6% increase over last year same period earnings of $2,488,000, or $0.23 per share.

The comparison of the Company’s 2nd quarter 2007 results with that of the prior year’s was positively affected by a $596,000, or 7%, increase in net interest income and a $332,000, or 9%, increase in non-interest income. The increase in net interest income was driven by a 20% increase in the Company’s loan portfolio during the twelve month period ended June 30, 2007. On a linked quarter basis (2nd quarter versus 1st quarter 2007), the end of period loan portfolio balances increased at a similar annualized 20% rate during the 2nd quarter of this year.

The increase in the level of the Company’s non-interest income was derived from a number of sources, including a $104,000, or 10%, increase in deposit service charges and a $95,000, or 17%, increase in trust and investment product fees. Additionally, insurance revenues increased by $432,000, or 39%. $241,000 of this increase was related to the inclusion of the 2007 revenues of the Keach & Grove Agency, which was purchased in the 4th quarter of last year. On a same agency basis, insurance commission revenue, exclusive of $109,000 in contingency commissions, increased by approximately $112,000, or 11%. Somewhat offsetting these positive period over period comparisons was the inclusion in last year’s 2nd quarter non-interest income of $272,000 of mortgage servicing related revenue which included a $219,000 gain from the sale of the Company’s mortgage servicing portfolio during the 2nd quarter of last year.
 
The Company’s non-interest expenses increased by only $189,000, a modest 2%, in spite of the inclusion of the operating expenses of both the Keach & Grove Agency and the new Bloomington banking office, which opened in February of this year, in the 2007 data. Approximately $534,000 of the 2nd quarter 2007 operating expenses, representing more than the quarter-to-quarter increase in the Company’s non-interest expenses, were attributable to these two newest components of the Company’s operations. Absent the operating expenses of these new operations, the Company’s total non-interest expense would have declined by $345,000, or 4%, during the 2nd quarter of this year as compared to the same period in 2006.
 
 
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
 
 
 
“We’re extremely pleased with our 2nd quarter results which were the result of both a strong level of revenue growth in virtually every component of the Company’s operations and our ability to generate that revenue growth while controlling the level of our operating expenses”, stated Mark A. Schroeder, German American’s President & Chief Executive Officer. “We are particularly gratified by the growth within our lending portfolio”, Schroeder continued. “Business and consumer customers throughout our market area are increasingly turning to German American for all their financial needs. We’re very pleased that the combination of our highly qualified financial professionals, local decision-making, and customer-focused products and services continues to find a receptive audience within the communities we serve.”
   
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 August 20, 2007 to shareholders of record as of August 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
 
 
 
Forward-Looking Statements
 
German American’s statements in this press release regarding its outlook for its future financial performance 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. 

In addition, German American’s statements in this press release include an annualization of its loan growth rate based on loan growth within the 2nd quarter of 2007. German American does not, by doing so, intend to suggest that the actual loan growth rate for 2007 or for any other twelve-month period that includes the 2nd quarter of 2007, will necessarily prove to be equal to or greater than the loan growth figure presented on an annualized basis; loan growth rates for any twelve-month period may be materially less than annualized figures, due to the above or other factors.  

 
 
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
 
Consolidated Balance Sheets
 
   
June 30,
  
   
2007
  
2006
  
           
ASSETS
          
Cash and Due from Banks
 
$
25,538
  
$
26,149
  
Short-term Investments
   
4,181
   
5,424
 
Investment Securities
    
160,522
   
206,218
 
               
Loans Held-for-Sale
    
2,496
   
2,261
 
 
              
Loans, Net of Unearned Income
    
850,205
   
705,787
 
Allowance for Loan Losses
    
(7,776
)
  
(9,019
)
Net Loans
    
842,429
   
696,768
 
               
Stock in FHLB and Other Restricted Stock
    
10,621
   
14,483
 
Premises and Equipment
    
23,721
   
23,124
 
Goodwill and Other Intangible Assets
    
14,132
   
12,710
 
Other Assets
    
38,265
   
37,403
 
TOTAL ASSETS
  
$
1,121,905
  
$
1,024,540
  
               
LIABILITIES
              
Non-interest-bearing Demand Deposits
  
$
131,374
  
$
126,011
  
Interest-bearing Demand, Savings, and Money Market Accounts
    
330,956
   
319,104
 
Time Deposits
    
449,777
   
359,658
 
Total Deposits
    
912,107
   
804,773
 
               
Borrowings
    
103,845
   
119,717
 
Other Liabilities
    
13,459
   
11,322
 
TOTAL LIABILITIES
    
1,029,411
   
935,812
 
               
SHAREHOLDERS' EQUITY
              
Common Stock and Surplus
    
79,398
   
79,202
 
Retained Earnings
    
14,486
   
11,362
 
Accumulated Other Comprehensive Loss
    
(1,390
)
  
(1,836
)
TOTAL SHAREHOLDERS' EQUITY
    
92,494
   
88,728
 
               
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  
$
1,121,905
  
$
1,024,540
  
               
END OF PERIOD SHARES OUTSTANDING
    
11,029,087
   
11,008,821
 
               
BOOK VALUE PER SHARE
  
$
8.39
  
$
8.06
  
 
 
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
 
 Consolidated Statements of Income
 
   
Three Months Ended
  
Six Months Ended
  
   
June 30,
  
June 30,
  
   
2007
  
2006
  
2007
  
2006
  
                   
INTEREST INCOME
                  
Interest and Fees on Loans
 
$
15,846
  
$
12,813
  
$
30,913
  
$
25,195
  
Interest on Short-term Investments
   
84
   
136
   
204
   
262
 
Interest and Dividends on Investment Securities
    
2,028
   
2,428
   
4,170
   
4,668
 
TOTAL INTEREST INCOME
    
17,958
   
15,377
   
35,287
   
30,125
 
                           
INTEREST EXPENSE
                          
Interest on Deposits
   
6,825
   
5,068
   
13,255
   
9,550
 
Interest on Borrowings
    
1,639
   
1,411
   
3,163
   
2,801
 
TOTAL INTEREST EXPENSE 
    
8,464
   
6,479
   
16,418
   
12,351
 
                           
NET INTEREST INCOME
   
9,494
   
8,898
   
18,869
   
17,774
 
Provision for Loan Losses
    
375
   
54
   
2,303
   
344
 
NET INTEREST INCOME AFTER
                              
PROVISION FOR LOAN LOSSES
    
9,119
   
8,844
   
16,566
   
17,430
 
                           
NON-INTEREST INCOME
                          
Net Gain on Sales of Loans and Related Assets
    
198
   
454
   
376
   
667
 
Net Gain / (Loss) on Securities
    
-
   
-
   
-
   
-
 
Other Non-interest Income
    
3,982
   
3,394
   
7,714
   
6,977
 
TOTAL NON-INTEREST INCOME 
    
4,180
   
3,848
   
8,090
   
7,644
 
                           
NON-INTEREST EXPENSE
                          
Salaries and Benefits
    
5,554
   
5,367
   
11,057
   
10,551
 
Other Non-interest Expenses
    
3,869
   
3,867
   
7,800
   
7,488
 
TOTAL NON-INTEREST EXPENSE
    
9,423
   
9,234
   
18,857
   
18,039
 
                           
Income before Income Taxes
    
3,876
   
3,458
   
5,799
   
7,035
 
Income Tax Expense
    
1,233
   
970
   
1,677
   
1,984
 
                   
NET INCOME
  
$
2,643
  
$
2,488
  
$
4,122
  
$
5,051
  
                           
EARNINGS PER SHARE & DILUTED EARNINGS PER SHARE
  
$
0.24
  
$
0.23
  
$
0.37
  
$
0.46
  
                           
                           
WEIGHTED AVERAGE SHARES OUTSTANDING
    
11,008,562
   
10,993,898
   
11,008,562
   
10,993,567
 
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING
    
11,022,693
   
11,000,933
   
11,020,284
   
11,002,190
 
 
 
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
 
   
Three Months Ended
  
Six Months Ended
  
   
June 30,
  
June 30,
  
   
2007
  
2006
  
2007
  
2006
  
EARNINGS PERFORMANCE RATIOS
                  
Annualized Return on Average Assets
    
0.95
%
  
0.98
%
  
0.75
%
  
1.00
%
Annualized Return on Average Equity
    
11.45
%
  
11.36
%
  
8.90
%
  
11.53
%
Net Interest Margin
    
3.78
%
  
3.99
%
  
3.83
%
  
4.01
%
Efficiency Ratio (1)
    
68.16
%
  
70.85
%
  
69.10
%
  
69.41
%
Net Overhead Expense to Average Earning
Assets (2)
    
2.05
%
  
2.33
%
  
2.13
%
  
2.26
%
                           
ASSET QUALITY RATIOS
                          
Annualized Net Charge-offs to Average Loans
    
0.10
%
  
0.44
%
  
0.41
%
  
0.31
%
Allowance for Loan Losses to Period End Loans
                
0.91
%
  
1.28
%
Non-performing Assets to Period End Assets
                
0.59
%
  
1.24
%
Non-performing Loans to Period End Loans
                
0.64
%
  
1.66
%
                           
                           
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA
                          
Average Assets
  
$
1,112,972
  
$
1,012,966
  
$
1,101,568
  
$
1,008,783
  
Average Earning Assets
  
$
1,020,979
  
$
922,960
  
$
1,009,651
  
$
919,989
  
Average Total Loans
  
$
834,452
  
$
693,648
  
$
816,943
  
$
693,249
  
Average Demand Deposits
  
$
134,805
  
$
129,605
  
$
134,156
  
$
131,150
  
Average Interest Bearing Liabilities
  
$
872,475
  
$
783,330
  
$
861,491
  
$
776,976
  
Average Equity
  
$
92,355
  
$
87,595
  
$
92,580
  
$
87,639
  
                           
Period End Non-performing Assets (3)
              
$
6,588
  
$
12,725
  
Period End Non-performing Loans (4)
              
$
5,436
  
$
11,738
  
                           
Tax Equivalent Net Interest Income
  
$
9,646
  
$
9,186
  
$
19,198
  
$
18,346
  
Net Charge-offs during Period
  
$
219
  
$
757
  
$
1,656
  
$
1,074
  

(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.