Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

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, 2014. 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.

	Core Banking		Trust and Investment Advisory Services			Insurance		Other			Consolidated Totals
Three Months Ended
September 30, 2014
Net Interest Income	$	18,908	$	4		$	1	$	(122	)	$	18,791
Net Gains on Sales of Loans	613		—			—		—			613
Net Gains on Securities	567		—			—		—			567
Trust and Investment Product Fees	2		899			—		—			901
Insurance Revenues	15		22			1,702		—			1,739
Noncash Items:
Provision for Loan Losses	—		—			—		—			—
Depreciation and Amortization	1,120		5			26		38			1,189
Income Tax Expense (Benefit)	3,496		(15		)	147		(190		)	3,438
Segment Profit (Loss)	7,540		(30		)	216		(18		)	7,708
Segment Assets at September 30, 2014	2,213,848		11,452			6,442		(25,821		)	2,205,921

	Core Banking			Trust and Investment Advisory Services			Insurance		Other			Consolidated 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 December 31, 2013	2,171,837			11,663			5,636		(25,309		)	2,163,827

	Core Banking		Trust and Investment Advisory Services			Insurance		Other			Consolidated Totals
Nine Months Ended
September 30, 2014
Net Interest Income	$	55,655	$	12		$	3	$	(362	)	$	55,308
Net Gains on Sales of Loans	1,475		—			—		—			1,475
Net Gains on Securities	1,039		—			—		—			1,039
Trust and Investment Product Fees	4		2,724			—		—			2,728
Insurance Revenues	20		33			5,724		—			5,777
Noncash Items:
Provision for Loan Losses	550		—			—		—			550
Depreciation and Amortization	3,395		18			85		113			3,611
Income Tax Expense (Benefit)	8,940		(122		)	747		(598		)	8,967
Segment Profit (Loss)	19,908		(202		)	1,078		(84		)	20,700
Segment Assets at September 30, 2014	2,213,848		11,452			6,442		(25,821		)	2,205,921

	Core Banking			Trust and Investment Advisory Services			Insurance		Other			Consolidated 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 December 31, 2013	2,171,837			11,663			5,636		(25,309		)	2,163,827