Segment Information

9 Months Ended

Sep. 30, 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 37 banking offices at September 30, 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
	Banking		Services		Insurance		Other		Totals
Three Months Ended
September 30, 2013
Net Interest Income	$	17,334	$	5	$	4	$	(151)	$	17,192
Net Gains on Sales of Loans		613		—		—		—		613
Net Gains on Securities		415		—		—		13		428
Trust and Investment Product Fees		1		802		—		(1)		802
Insurance Revenues		10		7		1,478		—		1,495
Noncash Items:
Provision for Loan Losses		(400)		—		—		—		(400)
Depreciation and Amortization		941		6		99		38		1,084
Income Tax Expense (Benefit)		3,218		(24)		67		(292)		2,969
Segment Profit (Loss)		6,581		(41)		96		(153)		6,483
Segment Assets at September 30, 2013		2,068,392		11,641		8,149		(28,060)		2,060,122

			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 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
Nine Months Ended
September 30, 2013
Net Interest Income	$	51,102	$	16	$	16	$	(1,005)	$	50,129
Net Gains on Sales of Loans		2,176		—		—		—		2,176
Net Gains on Securities		1,495		—		—		13		1,508
Trust and Investment Product Fees		5		2,430		—		(2)		2,433
Insurance Revenues		25		26		4,607		—		4,658
Noncash Items:
Provision for Loan Losses		(250)		—		—		—		(250)
Depreciation and Amortization		2,864		21		310		113		3,308
Income Tax Expense (Benefit)		9,588		(50)		254		(1,080)		8,712
Segment Profit (Loss)		19,262		(90)		334		(682)		18,824
Segment Assets at September 30, 2013		2,068,392		11,641		8,149		(28,060)		2,060,122

			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 December 31, 2012		2,006,992		11,551		8,333		(20,576)		2,006,300