Segment Information

9 Months Ended

Sep. 30, 2012

Segment Information [Abstract]

Segment Information

Note 6 – 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 Bancorp, which operated through 35 banking offices at September 30, 2012. 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 German American Financial Advisors & Trust Company. 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 German American Bancorp, Inc., which are used by management to monitor and manage the financial performance of the Company. 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.

			Trust and
			Investment
	Core		Advisory								Consolidated
	Banking		Services			Insurance		Other			Totals
Three Months Ended September 30, 2012
Net Interest Income	$	16,909	$	6		$	9	$	(531	)	$	16,393
Net Gains on Sales of Loans		941		—			—		—			941
Net Gains on Securities		598		—			—		—			598
Trust and Investment Product Fees		—		659			—		—			659
Insurance Revenues		3		5			1,461		—			1,469
Noncash Items:
Provision for Loan Losses		640		—			—		—			640
Depreciation and Amortization		941		6			101		37			1,085
Income Tax Expense (Benefit)		3,186		(45	)		70		(320	)		2,891
Segment Profit (Loss)		6,578		(71	)		100		(315	)		6,292
Segment Assets at September 30, 2012		1,964,276		11,724			7,914		(21,616	)		1,962,298

			Trust and
			Investment
	Core		Advisory									Consolidated
	Banking		Services			Insurance			Other			Totals
Three Months Ended September 30, 2011
Net Interest Income	$	16,726	$	7		$	6		$	(536	)	$	16,203
Net Gains on Sales of Loans		863		—			—			—			863
Net Gains on Securities		—		—			—			—			—
Trust and Investment Product Fees		—		603			—			(1	)		602
Insurance Revenues		16		7			1,238			—			1,261
Noncash Items:
Provision for Loan Losses		1,300		—			—			—			1,300
Depreciation and Amortization		1,072		4			103			38			1,217
Income Tax Expense (Benefit)		2,717		(100	)		(11	)		(315	)		2,291
Segment Profit (Loss)		5,595		(151	)		(21	)		(256	)		5,167
Segment Assets at December 31, 2011		1,875,417		11,801			7,948			(21,399	)		1,873,767

			Trust and
			Investment
	Core		Advisory								Consolidated
	Banking		Services			Insurance		Other			Totals
Nine Months Ended September 30, 2012
Net Interest Income	$	51,213	$	16		$	26	$	(1,601	)	$	49,654
Net Gains on Sales of Loans		2,330		—			—		—			2,330
Net Gains on Securities		692		—			—		—			692
Trust and Investment Product Fees		3		2,018			—		(2	)		2,019
Insurance Revenues		19		32			4,167		—			4,218
Noncash Items:
Provision for Loan Losses		1,721		—			—		—			1,721
Depreciation and Amortization		3,145		16			311		112			3,584
Income Tax Expense (Benefit)		9,041		(103	)		176		(994	)		8,120
Segment Profit (Loss)		18,737		(168	)		245		(953	)		17,861
Segment Assets at September 30, 2012		1,964,276		11,724			7,914		(21,616	)		1,962,298

			Trust and
			Investment
	Core		Advisory								Consolidated
	Banking		Services			Insurance		Other			Totals
Nine Months Ended September 30, 2011
Net Interest Income	$	49,155	$	14		$	19	$	(1,614	)	$	47,574
Net Gains on Sales of Loans		1,651		—			—		—			1,651
Net Gains on Securities		—		—			—		1,045			1,045
Trust and Investment Product Fees		2		1,562			—		(3	)		1,561
Insurance Revenues		56		9			4,551		(16	)		4,600
Noncash Items:
Provision for Loan Losses		3,900		—			—		—			3,900
Depreciation and Amortization		3,392		21			376		113			3,902
Income Tax Expense (Benefit)		6,712		(247	)		319		(996	)		5,788
Segment Profit (Loss)		14,559		(374	)		418		73			14,676
Segment Assets at December 31, 2011		1,875,417		11,801			7,948		(21,399	)		1,873,767