GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, President/CEO of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

1 of 9

April 30, 2009 German American Bancorp, Inc. Reports 1st Quarter Results and Declares Its Regular Quarterly Cash Dividends.

Summary

German American Bancorp, Inc. (NASDAQ: GABC) today announced the Company’s 1st quarter earnings of $2,942,000, or $0.27 per share.  On a per share basis, 1st quarter 2009 earnings were equal to the record $0.27 per share reported in the 1st quarter of last year.  On a net income basis, the current year’s reported 1st quarter earnings were only $78,000, or 2.6%, less than the $3,020,000 reported as last year’s record 1st quarter earnings.

Mark A. Schroeder, President & CEO of German American, commenting on the 1st quarter results stated, “Our 1st quarter delivered yet another quarter of solid financial performance, coming on the heels of our record 2008 financial performance.  In spite of the challenges of significantly increased FDIC insurance premiums and higher employee health benefit costs, we were able to post solid earnings by largely offsetting these higher operating costs through an improved level of net interest income and a reduction in the Company’s credit costs.  We’re very pleased that our performance continues to set us apart within the financial services industry in terms of both earnings and credit quality.”

Schroeder continued, “As compared to both the prior year-end and prior year quarter-end data, our Company’s credit quality showed improvement by virtually every measure.  We’re encouraged that our customers have been able to continue to meet their credit obligations in the face of a difficult economic environment.  Additionally, our securities portfolio hasn’t been impacted by market value other-than-temporary impairment charges that have affected the securities portfolios of many other financial institutions.  We are, however, acutely aware of the current economic reality and the challenges that may face the national economy and our market area in the coming months, and accordingly we continue to very closely monitor the performance of both our loan and our securities portfolios.”

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 May 20, 2009 to shareholders of record as of May 10, 2009.

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, President/CEO of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

2 of 9

Balance Sheet Highlights

End-of-period loans outstanding declined by 9% on an annualized basis during the first quarter of 2009.  The decrease was largely attributable to a seasonal decline in the Company’s agriculture related loan portfolio.  In addition, the Company’s residential loan portfolio declined as market interest rates have continued to trend lower.  The Company continues to actively originate residential mortgage loans, with the vast majority of production being sold into the secondary market.  Partially offsetting the declines in other segments of the portfolio was an increase in the Company’s commercial and industrial loan portfolio (including both real estate and non-real estate loans).

End of Period Loan Balances								Annualized
	03/31/09		12/31/08		$ Change			% Change
Commercial & Industrial Loans	$	510,324	$	505,191	$	5,133		4	%
Agricultural Loans		144,524		159,923		(15,399	)	-39	%
Consumer Loans		123,354		127,343		(3,989	)	-13	%
Residential Mortgage Loans		94,164		100,054		(5,890	)	-24	%
	$	872,366	$	892,511	$	(20,145	)	-9	%

Average loans outstanding increased by just over 2% during the first quarter of 2009 compared with the first quarter of 2008.  The increase in average loan balances was driven by the Company’s commercial and industrial loans (including both real estate and non-real estate loans).

Average Loan Balances	Qtr Ended		Qtr Ended
	03/31/09		3/31/08		$ Change			% Change
Commercial & Industrial Loans	$	507,059	$	465,206	$	41,853		9	%
Agricultural Loans		149,582		153,051		(3,469	)	-2	%
Consumer Loans		125,652		129,269		(3,617	)	-3	%
Residential Mortgage Loans		105,617		120,895		(15,278	)	-13	%
	$	887,910	$	868,421	$	19,489		2	%

Non-performing loans totaled $8.2 million at March 31, 2009 compared to $8.4 million of non-performing loans at December 31, 2008.  Non-performing loans represented 0.95% of total outstanding loans at March 31, 2009 and 0.94% of total loans outstanding at December 31, 2008.

The Company’s allowance for loan losses totaled $10.0 million at March 31, 2009, an increase of $522,000 or 5%, compared with $9.5 million at year-end 2008.  The allowance for loan losses represented 1.15% of period end loans at March 31, 2009 compared with 1.07% of period end total loans at December 31, 2008.

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, President/CEO of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

3 of 9

End-of-period deposits increased approximately 5% at March 31, 2009 compared with year-end 2008.  The increase was attributable to growth across all segments of the Company’s core deposit base which is defined as its demand deposits (interest-bearing and non-interest-bearing), savings, money market, and time deposits in denominations of less than $100,000.

End of Period Deposit Balances								Annualized
	03/31/09		12/31/08		$ Change			% Change
Non-interest-bearing Demand Deposits	$	149,197	$	147,977	$	1,220		3	%
Interest-bearing Demand, Savings, & Money Market Accounts		448,550		439,305		9,245		8	%
Time Deposits < $100,000		253,504		250,339		3,165		5	%
Time Deposits of $100,000 or more & Brokered Deposits		101,240		104,129		(2,889	)	-11	%
	$	952,491	$	941,750	$	10,741		5	%

Average deposits increased approximately 5% for the quarter ended March 31, 2009 compared to the first quarter of 2008.  The increase in average deposits was driven by significant growth in the Company’s non-maturity deposit balances.

Average Deposit Balances	Qtr Ended		Qtr Ended
	03/31/09		3/31/08		$ Change			% Change
Non-interest-bearing Demand Deposits	$	146,308	$	134,835	$	11,473		9	%
Interest-bearing Demand, Savings, & Money Market Accounts		445,524		376,768		68,756		18	%
Time Deposits < $100,000		253,184		278,264		(25,080	)	-9	%
Time Deposits of $100,000 or more & Brokered Deposits		100,316		114,379		(14,063	)	-12	%
	$	945,332	$	904,246	$	41,086		5	%

Income Statement Highlights

Quarter ended March 31, 2009 compared to quarter ended March 31, 2008

Net income for the first quarter of 2009 totaled $2,942,000, a decrease of $78,000 or 3% compared to first quarter 2008 net income of $3,020,000.

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, President/CEO of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

4 of 9

During the quarter ended March 31, 2009, net interest income totaled $10,641,000 representing an increase of $522,000 or 5% over the first quarter of 2008.  The tax equivalent net interest margin for the first quarter 2009 was 3.92% compared to 3.89% for the first quarter of 2008.  The yield on earning assets totaled 5.82% during the quarter ended March 31, 2009 compared to 6.83% in the same period of 2008 while the cost of funds totaled 1.90% during 2009 compared to 2.94% in 2008.

The provision for loan loss totaled $750,000 during the quarter ended March 31, 2009, representing a decline of $594,000 from the first quarter of 2008.  During the first quarter of 2009, the annualized provision for loan loss represented approximately 34 basis points of average loans while annualized net charge-offs represented approximately 10 basis points of average loans.

During the first quarter of 2009, non-interest income declined approximately 16% over the first quarter of 2008.

Non-interest Income	Qtr Ended		Qtr Ended
	03/31/09		3/31/08		$ Change			% Change
Trust and Investment Product Fees	$	390	$	587	$	(197	)	-34	%
Service Charges on Deposit Accounts		1,060		1,183		(123	)	-10	%
Insurance Revenues		1,487		1,903		(416	)	-22	%
Other Operating Income		742		750		(8	)	-1	%
Subtotal		3,679		4,423		(744	)	-17	%
Net Gains on Sales of Loans and Related Assets		565		324		241		74	%
Net Gain (Loss) on Securities		—		285		(285	)	-100	%
Total Non-interest Income	$	4,244	$	5,032	$	(788	)	-16	%

Trust and investment product fees decreased 34% during the first quarter of 2009 compared with the same period of 2008.  Management believes this decline was primarily attributable to difficult and volatile economic and market conditions. Deposit service charges and fees declined by 10% due in large part to less customer utilization of the Company’s overdraft protection program.  Insurance revenues declined 22% due to a reduced level of contingency revenue at the Company’s property and casualty insurance subsidiary, German American Insurance.

During the quarter ended March 31, 2009, the net gain on sale of residential loans increased 74% over the gain recognized in the quarter ended March 31, 2008.  The increase was attributable to higher levels of residential loan sales and a larger pipeline of residential mortgage loans in the first quarter of 2009, compared to the same period of 2008.

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, President/CEO of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

5 of 9

The Company had no security sale activity during the first quarter of 2009.  During the first quarter of 2008, the Company recognized a net gain on securities of $285,000 resulting from the sale of approximately $16 million of agency mortgage related securities and a gain on the mandatory redemption on a portion of the Company’s VISA stock holdings acquired as part of the initial public offering of VISA, Inc.

During the quarter ended March 31, 2009, non-interest expense increased approximately 8% compared with the same period of 2008.

Non-interest Expense	Qtr Ended		Qtr Ended
	03/31/09		3/31/08		$ Change			% Change
Salaries and Employee Benefits	$	5,614	$	5,327	$	287		5	%
Occupancy, Furniture and Equipment Expense		1,529		1,472		57		4	%
FDIC Premiums		335		26		309		1,188	%
Data Processing Fees		357		406		(49	)	-12	%
Professional Fees		607		564		43		8	%
Advertising and Promotion		288		233		55		24	%
Intangible Amortization		221		222		(1	)	0	%
Other Operating Expenses		1,130		1,098		32		3	%
Total Non-interest Expense	$	10,081	$	9,348	$	733		8	%

Salaries and benefits expense increased approximately 5% during the first quarter of 2009 compared with the first quarter of 2008.  The increase was nearly exclusively related to an increase in costs associated with the Company’s self-insured health insurance plan.

The Company’s FDIC insurance assessments increased in excess of $300,000 during the first quarter of 2009 compared with the first quarter of 2008.  The Company’s subsidiary bank is required to pay deposit insurance premiums to the FDIC.  Because the FDIC’s deposit insurance fund fell below prescribed levels in 2008, the FDIC has announced increased premiums for all insured depository institutions, including the Company’s subsidiary bank, in order to begin recapitalizing the fund.  Insurance assessments ranged from 0.12% to 0.50% of total deposits for the first quarter of 2009.  Effective April 1, 2009 insurance assessments will range from .07% to 0.78%, depending on an institution’s risk classification and other factors.  The Company was in the lower end of the assessment range during the first quarter of 2009.

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, President/CEO of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

6 of 9

In addition, under an interim rule adopted during the first quarter of 2009 subject to public comment, the FDIC proposed to impose a one-time 20 basis point emergency assessment on all insured depository institutions to be paid on September 30, 2009, based on deposits at June 30, 2009.  The FDIC has subsequently indicated the amount of this special assessment could decrease if certain events transpire.  The interim rule also authorizes the FDIC to impose an additional emergency assessment of up to 10 basis points in respect of deposits for quarters ended after June 30, 2009 if necessary to maintain public confidence in federal deposit insurance.  Each basis point of any future special assessment during 2009, based on the Company's most recent FDIC deposit insurance assessment, would cost the Company, on a pre-tax basis, approximately $95,000 in additional FDIC deposit insurance premium expense.  While the interim rules are subject to change and the exact amount of the special assessment is reportedly under legislative and regulatory study, the Company expects that a material special assessment will be assessed by the FDIC in respect of the insured deposits of all banks as of June 30, 2009.

****

Forward Looking Statements

The Company's statements in this press release regarding the performance of its loan and securities portfoliosand the prospects for special FDIC insurance assessments 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 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.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, President/CEO of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

7 of 9

GERMAN AMERICAN BANCORP, INC.

(unaudited, dollars in thousands except per share data)

Consolidated Balance Sheets

	March 31,
	2009			2008
ASSETS
Cash and Due from Banks	$	18,450		$	28,209
Short-term Investments		28,930			60,888
Investment Securities		201,544			145,807
Loans Held-for-Sale		13,172			6,613
Loans, Net of Unearned Income		870,544			858,589
Allowance for Loan Losses		(10,044	)		(9,198	)
Net Loans		860,500			849,391
Stock in FHLB and Other Restricted Stock		10,621			10,621
Premises and Equipment		21,970			23,152
Goodwill and Other Intangible Assets		12,575			13,463
Other Assets		36,541			36,816
TOTAL ASSETS	$	1,204,303		$	1,174,960
LIABILITIES
Non-interest-bearing Demand Deposits	$	149,197		$	142,281
Interest-bearing Demand, Savings, and
Money Market Accounts		448,550			399,789
Time Deposits		354,744			374,605
Total Deposits		952,491			916,675
Borrowings		130,036			144,454
Other Liabilities		13,723			14,364
TOTAL LIABILITIES		1,096,250			1,075,493
SHAREHOLDERS' EQUITY
Common Stock and Surplus		79,519			79,437
Retained Earnings		24,417			17,869
Accumulated Other Comprehensive Income		4,117			2,161
TOTAL SHAREHOLDERS' EQUITY		108,053			99,467
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	1,204,303		$	1,174,960
END OF PERIOD SHARES OUTSTANDING		11,073,063			11,029,484
BOOK VALUE PER SHARE	$	9.76		$	9.02

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, President/CEO of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

8 of 9

GERMAN AMERICAN BANCORP, INC.

(unaudited, dollars in thousands except per share data)

Consolidated Statements of Income

	Three Months Ended
	March 31,
	2009		2008
INTEREST INCOME
Interest and Fees on Loans	$	13,394	$	15,459
Interest on Short-term Investments		17		186
Interest and Dividends on Investment Securities		2,446		2,180
TOTAL INTEREST INCOME		15,857		17,825
INTEREST EXPENSE
Interest on Deposits		4,005		6,187
Interest on Borrowings		1,211		1,519
TOTAL INTEREST EXPENSE		5,216		7,706
NET INTEREST INCOME		10,641		10,119
Provision for Loan Losses		750		1,344
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		9,891		8,775
NON-INTEREST INCOME
Net Gain on Sales of Loans and Related Assets		565		324
Net Gain (Loss) on Securities		-		285
Other Non-interest Income		3,679		4,423
TOTAL NON-INTEREST INCOME		4,244		5,032
NON-INTEREST EXPENSE
Salaries and Benefits		5,614		5,327
Other Non-interest Expenses		4,467		4,021
TOTAL NON-INTEREST EXPENSE		10,081		9,348
Income before Income Taxes		4,054		4,459
Income Tax Expense		1,112		1,439
NET INCOME	$	2,942	$	3,020
EARNINGS PER SHARE & DILUTED EARNINGS PER SHARE	$	0.27	$	0.27
WEIGHTED AVERAGE SHARES OUTSTANDING		11,036,942		11,029,484
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING		11,036,942		11,029,607

GERMAN AMERICAN BANCORP, INC.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, President/CEO of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

9 of 9

GERMAN AMERICAN BANCORP, INC.

(unaudited, dollars in thousands except per share data)

	Three Months Ended
	March 31,
	2009			2008
EARNINGS PERFORMANCE RATIOS
Annualized Return on Average Assets		0.98	%		1.06	%
Annualized Return on Average Equity		11.04	%		12.29	%
Net Interest Margin		3.92	%		3.89	%
Efficiency Ratio (1)		66.88	%		61.19	%
Net Overhead Expense to Average Earning Assets (2)		2.10	%		1.64	%
ASSET QUALITY RATIOS
Annualized Net Charge-offs to Average Loans		0.10	%		0.09	%
Allowance for Loan Losses to Period End Loans		1.15	%		1.07	%
Non-performing Assets to Period End Assets		0.88	%		0.91	%
Non-performing Loans to Period End Loans		0.95	%		1.09	%
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA
Average Assets	$	1,196,390		$	1,144,828
Average Earning Assets	$	1,114,003		$	1,055,886
Average Total Loans	$	887,910		$	868,421
Average Demand Deposits	$	146,308		$	134,835
Average Interest Bearing Liabilities	$	930,900		$	897,373
Average Equity	$	106,558		$	98,295
Period End Non-performing Assets (3)	$	10,604		$	10,730
Period End Non-performing Loans (4)	$	8,237		$	9,332
Tax Equivalent Net Interest Income	$	10,829		$	10,244
Net Charge-offs during Period	$	228		$	190

(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.