Segment Information

3 Months Ended

Mar. 31, 2013

Segment Reporting [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 March 31, 2013. 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
Three Months Ended	Banking		Services			Insurance		Other			Totals
March 31, 2013
Net Interest Income	$	16,764	$	5		$	7	$	(551	)	$	16,225
Net Gains on Sales of Loans		754		—			—		—			754
Net Gains on Securities		613		—			—		—			613
Trust and Investment Product Fees		3		815			—		(1	)		817
Insurance Revenues		9		13			1,762		—			1,784
Noncash Items:
Provision for Loan Losses		350		—			—		—			350
Depreciation and Amortization		950		7			105		37			1,099
Income Tax Expense (Benefit)		2,744		(2	)		147		(375	)		2,514
Segment Profit (Loss)		5,848		(8	)		211		(242	)		5,809
Segment Assets at March 31, 2013		1,983,625		11,535			8,394		(24,532	)		1,979,022

			Trust and
			Investment
	Core		Advisory								Consolidated
Three Months Ended	Banking		Services			Insurance		Other			Totals
March 31, 2012
Net Interest Income	$	17,141	$	3		$	7	$	(539	)	$	16,612
Net Gains on Sales of Loans		713		—			—		—			713
Net Gains on Securities		18		—			—		—			18
Trust and Investment Product Fees		1		696			—		(1	)		696
Insurance Revenues		10		18			1,363		—			1,391
Noncash Items:
Provision for Loan Losses		690		—			—		—			690
Depreciation and Amortization		1,109		5			105		37			1,256
Income Tax Expense (Benefit)		2,875		(48	)		40		(339	)		2,528
Segment Profit (Loss)		5,932		(77	)		56		(309	)		5,602
Segment Assets at December 31, 2012		2,006,992		11,551			8,333		(20,576	)		2,006,300