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Segment Information
 12 Months Ended
Dec. 31, 2012
Segment Reporting [Abstract]  
Segment Information

NOTE 15 – 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 34 banking offices at December 31, 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  
Year Ended December 31, 2012                              
Net Interest Income   $ 68,311     $ 21     $ 34     $ (2,118 )   $ 66,248  
Net Gains on Sales of Loans     3,234       —       —       —       3,234  
Net Gains on Securities     1,667       —       —       —       1,667  
Trust and Investment Product Fees     5       2,657       —       (5 )     2,657  
Insurance Revenues     23       36       5,465       —       5,524  
Noncash Items:                                        
Provision for Loan Losses     2,412       —       —       —       2,412  
Depreciation and Amortization     4,099       24       415       150       4,688  
Income Tax Expense (Benefit)     11,999       (187 )     181       (1,324 )     10,669  
Segment Profit (Loss)     25,118       (298 )     250       (1,015 )     24,055  
Segment Assets at December 31, 2012     2,006,992       11,551       8,333       (20,576 )     2,006,300  

 

          Trust and                    
          Investment                    
    Core     Advisory                 Consolidated  
    Banking     Services     Insurance     Other     Totals  
Year Ended December 31, 2011                              
Net Interest Income   $ 66,099     $ 16     $ 22     $ (2,156 )   $ 63,981  
Net Gains on Sales of Loans     2,381       —       —       —       2,381  
Net Gains on Securities     2,089       —       —       935       3,024  
Trust and Investment Product Fees     3       2,147       —       (5 )     2,145  
Insurance Revenues     67       13       5,755       (16 )     5,819  
Noncash Items:                                        
Provision for Loan Losses     6,800       —       —       —       6,800  
Depreciation and Amortization     4,481       26       482       150       5,139  
Income Tax Expense (Benefit)     9,171       (353 )     272       (1,364 )     7,726  
Segment Profit (Loss)     20,855       (545 )     352       (413 )     20,249  
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  
Year Ended December 31, 2010                              
Net Interest Income   $ 50,460     $ 8     $ 27     $ (1,824 )   $ 48,671  
Net Gains on Sales of Loans     2,160       —       —       —       2,160  
Net Gains on Securities     —       —       —       —       —  
Trust and Investment Product Fees     2       1,585       —       (5 )     1,582  
Insurance Revenues     61       26       5,282       (22 )     5,347  
Noncash Items:                                        
Provision for Loan Losses     5,225       —       —       —       5,225  
Depreciation and Amortization     2,865       29       826       —       3,720  
Income Tax Expense (Benefit)     7,181       (259 )     (56 )     (1,243 )     5,623  
Segment Profit (Loss)     15,325       (385 )     (130 )     (1,405 )     13,405  
Segment Assets at December 31, 2010     1,368,348       2,193       8,426       (3,079 )     1,375,888