8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (date of earliest event reported):

July 27, 2015

GERMAN AMERICAN BANCORP, INC.

(Exact Name of Registrant as Specified in Its Charter)

Indiana

(State or Other Jurisdiction of Incorporation)

001-15877	35-1547518
(Commission File Number)	(IRS Employer Identification No.)
711 Main Street Box 810 Jasper, Indiana	47546
(Address of Principal Executive Offices)	(Zip Code)

(812) 482-1314

(Registrant’s Telephone Number, Including Area Code)

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On July 27, 2015, German American Bancorp, Inc. (the "Company" or "German American"), issued a press release announcing its results for the quarter ended June 30, 2015, and making other disclosures. The press release (including the accompanying unaudited consolidated financial statements as of and for the quarter ended June 30, 2015, and other financial data) is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

The information incorporated by reference herein from Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 8.01. Other Events.

Cash Dividend. As announced in the press release that is furnished as Exhibit 99.1 to this report, the Company's Board of Directors has declared a cash dividend of $0.17 per share which will be payable August 20, 2015 to shareholders of record as of August 10, 2015.

Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits.

(d) Exhibits

99.1 Press release dated July 27, 2015. This exhibit shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

GERMAN AMERICAN BANCORP, INC.

 
By: /s/ Mark A. Schroeder

Mark A. Schroeder, Chairman of the Board and Chief Executive Officer

Dated: July 27, 2015

EX-99.1

Exhibit 99.1

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

1 of 11

JULY 27, 2015 GERMAN AMERICAN BANCORP, INC. (GABC) REPORTS STRONG QUARTERLY AND YEAR-TO-DATE EARNINGS GROWTH

Jasper, Indiana - July 27, 2015 -- German American Bancorp, Inc. (NASDAQ: GABC) reported today that the Company’s second quarter earnings increased by 8%, on an earnings per share basis, over the earnings reported for the second quarter of the prior year. Net income for the second quarter ended June 30, 2015 was $7.3 million, or $0.55 per share, as compared to same quarter 2014 net income of $6.7 million, or $0.51 per share. On a year-to-date basis, 2015 earnings improved to $14.6 million, or $1.10 per diluted share, as compared to $13.0 million, or $0.98 per diluted share, for the first six months of 2014, representing an increase of 12% on a per share basis.

The Company’s 2015 quarterly earnings improvement was attributable to increased revenue within both net interest income and non-interest income. In the second quarter of 2015, as compared with the second quarter of 2014, net interest income increased by $335,000, or approximately 2%, largely attributable to the Company’s growth in earning assets, and in particular growth of the loan portfolio. During the second quarter, total loans, on a linked quarter annualized basis, increased by approximately 7%. Total non-interest income increased by $619,000, or 11% during the current quarter, as compared to the same quarter last year, as the Company saw improvement in virtually every category of non-interest income with the largest of the increases in the area of mortgage banking revenue. The Company was also able to control non-interest expenses in the current quarter as operating costs increased by only 1% in the second quarter relative to the operating expense incurred in the second quarter of 2014.

Mark A. Schroeder, German American’s Chairman & CEO stated, “We’re extremely pleased with our level of second quarter and year-to-date earnings, and the underlying continued growth within our loan portfolio and within virtually every fee income category. These enhanced sources of revenue, coupled with our disciplined approach to expense control, have resulted in our being able to report quarterly earnings of $7.3 million in each of first two quarters of the current year and in excess of $7.0 million for each of the past four consecutive quarters. We are also very encouraged by the continuation, during the quarter, of an expanding market environment in terms of customer demand for all types of loans and for our Company’s fee-based products and services.”

The Company also announced that its Board of Directors declared its regular quarterly cash dividend of $0.17 per share which will be payable on August 20, 2015 to shareholders of record as of August 10, 2015.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

2 of 11

Balance Sheet Highlights

Total assets for the Company totaled $2.260 billion at June 30, 2015, an increase of $19.5 million, or 3%, on an annualized basis compared with March 31, 2015 and an increase of $66.1 million, or 3%, compared with June 30, 2014.

June 30, 2015 total loans outstanding increased $25.6 million or 7% on an annualized basis, compared with March 31, 2015, and increased $63.1 million, or 4%, compared to June 30, 2014 total loans outstanding. The increase in loans was broad based across all categories of loans throughout the Company's market area.

End of Period Loan Balances	6/30/2015		3/31/2015		6/30/2014
(dollars in thousands)
Commercial & Industrial Loans	$	396,741	$	388,249	$	366,101
Commercial Real Estate Loans	584,426		581,394		594,681
Agricultural Loans	222,298		212,735		188,155
Consumer Loans	135,874		132,107		130,290
Residential Mortgage Loans	137,129		136,399		134,104
	$	1,476,468	$	1,450,884	$	1,413,331

Non-performing assets totaled $5.8 million at June 30, 2015 compared to $6.4 million of non-performing assets at March 31, 2015 and $6.9 million at June 30, 2014. Non-performing assets represented 0.26% of total assets at June 30, 2015 compared to 0.29% of total assets at March 31, 2015 and 0.31% of total assets at June 30, 2014. Non-performing loans totaled $5.4 million at June 30, 2015 compared to $6.1 million at March 31, 2015 and $6.0 million of non-performing loans at June 30, 2014. Non-performing loans represented 0.37% of total loans at June 30, 2015 compared to 0.42% at March 31, 2015 and June 30, 2014.

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

3 of 11

Non-performing Assets
(dollars in thousands)
	6/30/2015		3/31/2015		6/30/2014
Non-Accrual Loans	$	5,431	$	5,943	$	5,902
Past Due Loans (90 days or more)	15		131		67
Total Non-Performing Loans	5,446		6,074		5,969
Other Real Estate	317		324		935
Total Non-Performing Assets	$	5,763	$	6,398	$	6,904
Restructured Loans	$	2,587	$	2,686	$	3,596

The Company’s allowance for loan losses totaled $15.3 million at June 30, 2015 compared to $15.2 million at March 31, 2015 representing an increase of $89,000, or 2%, on an annualized basis and a decline of $292,000, or 2%, compared with June 30, 2014. The allowance for loan losses represented 1.04% of period-end loans at June 30, 2015 compared with 1.05% of period-end loans at March 31, 2015 and 1.10% of period-end loans at June 30, 2014. Under acquisition accounting treatment, loans acquired are recorded at fair value which includes a credit risk component, and therefore the allowance on loans acquired is not carried over from the seller. The Company held a discount on acquired loans of $3.3 million as of June 30, 2015, $3.7 million at March 31, 2015 and $4.9 million at June 30, 2014.

Total deposits decreased $37.6 million, or 8% on an annualized basis, as of June 30, 2015 compared with March 31, 2015 and increased by $20.4 million, or 1%, compared with June 30, 2014. The decline in total deposits at June 30, 2015 compared with March 31, 2015 was predominantly due to the maturity of short-term jumbo time deposits and short-term time deposits gathered through the CDARS network.

End of Period Deposit Balances	6/30/2015		3/31/2015		6/30/2014
(dollars in thousands)
Non-interest-bearing Demand Deposits	$	425,547	$	426,373	$	398,621
IB Demand, Savings, and MMDA Accounts	1,014,013		1,009,368		1,010,367
Time Deposits < $100,000	189,615		193,665		209,998
Time Deposits > $100,000	133,590		170,993		123,393
	$	1,762,765	$	1,800,399	$	1,742,379

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

4 of 11

Results of Operations Highlights – Quarter ended June 30, 2015

Net income for the quarter ended June 30, 2015 totaled $7,325,000 or $0.55 per share, an increase of $19,000, from the first quarter of 2015 net income of $7,306,000 or $0.55 per share and an increase of $638,000, or 8% on a per share basis, from the second quarter of 2014 net income of $6,687,000 or $0.51 per share.

Summary Average Balance Sheet
(Tax-equivalent basis / dollars in thousands)
	Quarter Ended						Quarter Ended						Quarter Ended
	June 30, 2015						March 31, 2015						June 30, 2014
	Principal Balance		Income/ Expense		Yield/ Rate		Principal Balance		Income/ Expense		Yield/ Rate		Principal Balance		Income/ Expense		Yield/ Rate
Assets
Federal Funds Sold and Other
Short-term Investments	$	20,540	$	4	0.07	%	$	16,508	$	3	0.08	%	$	12,493	$	3	0.11	%
Securities	632,270		4,400		2.78	%	635,849		4,379		2.75	%	626,057		4,232		2.70	%
Loans and Leases	1,456,699		16,630		4.58	%	1,443,886		16,389		4.60	%	1,390,185		16,215		4.68	%
Total Interest Earning Assets	$	2,109,509	$	21,034	4.00	%	$	2,096,243	$	20,771	4.00	%	$	2,028,735	$	20,450	4.04	%
Liabilities
Demand Deposit Accounts	$	420,341					$	427,404					$	400,656
IB Demand, Savings, and
MMDA Accounts	$	1,055,880	$	345	0.13	%	$	1,016,288	$	311	0.12	%	$	1,039,376	$	322	0.12	%
Time Deposits	341,678		677		0.79	%	359,844		682		0.77	%	336,901		715		0.85	%
FHLB Advances and Other Borrowings	160,196		450		1.13	%	170,049		458		1.09	%	153,989		467		1.22	%
Total Interest-Bearing Liabilities	$	1,557,754	$	1,472	0.38	%	$	1,546,181	$	1,451	0.38	%	$	1,530,266	$	1,504	0.39	%
Cost of Funds					0.28	%					0.28	%					0.30	%
Net Interest Income			$	19,562					$	19,320					$	18,946
Net Interest Margin					3.72	%					3.72	%					3.74	%

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

5 of 11

During the quarter ended June 30, 2015, net interest income totaled $18,706,000 representing an increase of $157,000, or 1%, from the quarter ended March 31, 2015 net interest income of $18,549,000 and an increase of $385,000, or 2%, compared with the quarter ended June 30, 2014 net interest income of $18,321,000. The tax equivalent net interest margin for the quarters ended June 30, 2015 and March 31, 2015 was 3.72% compared with 3.74% in the second quarter of 2014. The increase in net interest income during the second quarter of 2015 compared to both the first quarter of 2015 and the second quarter of 2014 was largely attributable to growth in earning assets and in particular growth of the loan portfolio.

Accretion of loan discounts on acquired loans contributed approximately 5 basis points on an annualized basis to the net interest margin in second quarter of 2015, 7 basis points in the first quarter of 2015, and 6 basis points in the second quarter of 2014.

During the quarters ended June 30, 2015 and March 31, 2015 the provision for loan loss totaled $250,000 while the provision totaled $200,000 in the second quarter of 2014. During the second quarter of 2015, the provision for loan loss represented approximately 7 basis points of average loans on an annualized basis. During the second quarter of 2015, the Company had net charge-offs of $161,000 representing approximately 4 basis points of average loans on an annualized basis.

During the quarter ended June 30, 2015, non-interest income totaled $6,121,000, a decline of $1,021,000 or 14%, compared with the quarter ended March 31, 2015, and an increase of $619,000, or 11%, compared with the second quarter of 2014.

	Quarter Ended		Quarter Ended		Quarter Ended
Non-interest Income	6/30/2015		3/31/2015		6/30/2014
(dollars in thousands)
Trust and Investment Product Fees	$	939	$	984	$	905
Service Charges on Deposit Accounts	1,220		1,137		1,191
Insurance Revenues	1,515		2,545		1,482
Company Owned Life Insurance	207		205		192
Interchange Fee Income	563		483		512
Other Operating Income	631		576		590
Subtotal	5,075		5,930		4,872
Net Gains on Loans	784		749		386
Net Gains on Securities	262		463		244
Total Non-interest Income	$	6,121	$	7,142	$	5,502

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

6 of 11

Insurance revenues declined $1,030,000, or 40%, during the quarter ended June 30, 2015, compared with the first quarter of 2015 and increased $33,000, or 2%, compared with the second quarter of 2014. The decline during the second quarter of 2015 compared with first quarter of 2015 was related to contingency revenue. There was no contingency revenue received during the second quarter of 2015 while contingency revenue during the first quarter of 2015 totaled $949,000. Typically the receipt of contingency revenue occurs during the first quarter of the calendar year as did occur in 2015 and is reflective of claims and loss experience with insurance carriers that the Company represents through its property and casualty insurance agency.

Net gains on sales of loans increased $35,000, or 5%, during the second quarter of 2015 compared with the first quarter of 2015 and increased $398,000 or 103% compared with the second quarter of 2014. Loan sales totaled $38.9 million during the second quarter of 2015, compared with $32.7 million during the first quarter of 2015 and $21.8 million during the second quarter of 2014.

During the second quarter of 2015, the Company realized a net gain on the sale of securities of $262,000 compared with a net gain of $463,000 during the first quarter of 2015 and $244,000 during the second quarter of 2014.

During the quarter ended June 30, 2015, non-interest expense totaled $14,315,000, a decline of $518,000, or 3%, compared with the quarter ended March 31, 2015, and an increase of $176,000, or 1%, compared with the second quarter of 2014.

	Quarter Ended		Quarter Ended		Quarter Ended
Non-interest Expense	6/30/2015		3/31/2015		6/30/2014
(dollars in thousands)
Salaries and Employee Benefits	$	8,259	$	8,825	$	7,886
Occupancy, Furniture and Equipment Expense	1,683		1,705		1,698
FDIC Premiums	284		282		276
Data Processing Fees	870		837		947
Professional Fees	642		644		553
Advertising and Promotion	484		443		544
Intangible Amortization	202		245		325
Other Operating Expenses	1,891		1,852		1,910
Total Non-interest Expense	$	14,315	$	14,833	$	14,139

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

7 of 11

Salaries and benefits decreased $566,000, or 6%, during the quarter ended June 30, 2015 compared with the first quarter of 2015 and increased $373,000, or 5%, compared with the second quarter of 2014. The decline in salaries and benefits during the second quarter of 2015 compared with the first quarter of 2015 was primarily due to lower costs attributable to benefits and payroll taxes that are directly attributable to the levels of cash compensation paid and due to lower costs related to the Company's partially self insured health insurance plan. The increase in salaries and benefits during the second quarter of 2015 compared with the second quarter of 2014 was primarily attributable to an increased level of variable compensation related to an increased level of secondary market mortgage loan production and attributable to increased costs related to the Company's long-term equity incentive compensation plan.

About German American

German American Bancorp, Inc., is a NASDAQ-traded (symbol: GABC) financial services holding company based in Jasper, Indiana. German American, through its banking subsidiary German American Bancorp, operates 37 banking offices in 13 southern Indiana counties. The Company also owns an investment brokerage subsidiary (German American Investment Services, Inc.) and a full line property and casualty insurance agency (German American Insurance, Inc.).

NEWS RELEASE

For additional information, contact:

Mark A Schroeder, Chief Executive Officer of German American Bancorp, Inc.

Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.

(812) 482-1314

8 of 11

Cautionary Note Regarding Forward-Looking Statements

The Company’s statements in this press release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements include, but are not limited to, descriptions of the levels of loan and banking service demand and economic strength that management is seeing in its geographical banking footprint.  Readers are cautioned that, by their nature, forward-looking statements are based on assumptions and are subject to risks, uncertainties, and other factors. Actual results and experience could differ materially from the anticipated results or other expectations expressed or implied by these forward-looking statements as a result of a number of factors, including but not limited to, those discussed in the press release. Factors that could cause actual experience to differ from the expectations implied in this press release include the unknown future direction of interest rates and the timing and magnitude of any changes in interest rates; changes in competitive conditions; the introduction, withdrawal, success and timing of asset/liability management strategies or of mergers and acquisitions and other business initiatives and strategies; changes in customer borrowing, repayment, investment and deposit practices; changes in fiscal, monetary and tax policies; changes in financial and capital markets; potential deterioration in general economic conditions, either nationally or locally, resulting in, among other things, credit quality deterioration; capital management activities, including possible future sales of new securities, or possible repurchases or redemptions by the Company of outstanding debt or equity securities; risks of expansion through acquisitions and mergers, such as unexpected credit quality problems of the acquired loans or other assets, unexpected attrition of the customer base of the acquired institution or branches, and difficulties in integration of the acquired operations; factors driving impairment charges on investments; the impact, extent and timing of technological changes; potential cyber-attacks, information security breaches and other criminal activities; litigation liabilities, including related costs, expenses, settlements and judgments, or the outcome of matters before regulatory agencies, whether pending or commencing in the future; actions of the Federal Reserve Board; changes in accounting principles and interpretations; potential increases of federal deposit insurance premium expense, and possible future special assessments of FDIC premiums, either industry wide or specific to the Company’s banking subsidiary; actions of the regulatory authorities under the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Federal Deposit Insurance Act and other possible legislative and regulatory actions and reforms; and the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends.  Such statements reflect our views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company.  Readers are cautioned not to place undue reliance on these forward-looking statements.  It is intended that these forward-looking statements speak only as of the date they are made.  We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.

GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Balance Sheets
	June 30, 2015			March 31, 2015			June 30, 2014
ASSETS
Cash and Due from Banks	$	31,538		$	34,277		$	40,391
Short-term Investments	20,729			26,590			16,723
Interest-bearing Time Deposits with Banks	100			100			100
Investment Securities	618,891			619,673			615,576
Loans Held-for-Sale	10,622			6,290			8,812
Loans, Net of Unearned Income	1,472,646			1,447,013			1,409,485
Allowance for Loan Losses	(15,258		)	(15,169		)	(15,550		)
Net Loans	1,457,388			1,431,844			1,393,935
Stock in FHLB and Other Restricted Stock	8,122			7,200			9,096
Premises and Equipment	38,707			39,370			40,479
Goodwill and Other Intangible Assets	22,162			22,365			23,191
Other Assets	51,427			52,514			45,270
TOTAL ASSETS	$	2,259,686		$	2,240,223		$	2,193,573
LIABILITIES
Non-interest-bearing Demand Deposits	$	425,547		$	426,373		$	398,621
Interest-bearing Demand, Savings, and Money Market Accounts	1,014,013			1,009,368			1,010,367
Time Deposits	323,205			364,658			333,391
Total Deposits	1,762,765			1,800,399			1,742,379
Borrowings	240,072			178,825			225,546
Other Liabilities	19,799			23,391			11,310
TOTAL LIABILITIES	2,022,636			2,002,615			1,979,235
SHAREHOLDERS' EQUITY
Common Stock and Surplus	122,437			122,103			121,566
Retained Earnings	114,190			109,118			92,934
Accumulated Other Comprehensive Income (Loss)	423			6,387			(162		)
TOTAL SHAREHOLDERS' EQUITY	237,050			237,608			214,338
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	2,259,686		$	2,240,223		$	2,193,573
END OF PERIOD SHARES OUTSTANDING	13,259,594			13,251,470			13,210,395
BOOK VALUE PER SHARE	$	17.88		$	17.93		$	16.22

GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Statements of Income
	Three Months Ended						Six Months Ended
	June 30, 2015		March 31, 2015		June 30, 2014		June 30, 2015		June 30, 2014
INTEREST INCOME
Interest and Fees on Loans	$	16,537	$	16,299	$	16,142	$	32,836	$	32,086
Interest on Short-term Investments and Time Deposits	4		3		3		7		6
Interest and Dividends on Investment Securities	3,637		3,698		3,680		7,335		7,414
TOTAL INTEREST INCOME	20,178		20,000		19,825		40,178		39,506
INTEREST EXPENSE
Interest on Deposits	1,022		993		1,037		2,015		2,073
Interest on Borrowings	450		458		467		908		916
TOTAL INTEREST EXPENSE	1,472		1,451		1,504		2,923		2,989
NET INTEREST INCOME	18,706		18,549		18,321		37,255		36,517
Provision for Loan Losses	250		250		200		500		550
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	18,456		18,299		18,121		36,755		35,967
NON-INTEREST INCOME
Net Gain on Sales of Loans	784		749		386		1,533		862
Net Gain on Securities	262		463		244		725		472
Other Non-interest Income	5,075		5,930		4,872		11,005		10,449
TOTAL NON-INTEREST INCOME	6,121		7,142		5,502		13,263		11,783
NON-INTEREST EXPENSE
Salaries and Benefits	8,259		8,825		7,886		17,084		16,310
Other Non-interest Expenses	6,056		6,008		6,253		12,064		12,919
TOTAL NON-INTEREST EXPENSE	14,315		14,833		14,139		29,148		29,229
Income before Income Taxes	10,262		10,608		9,484		20,870		18,521
Income Tax Expense	2,937		3,302		2,797		6,239		5,529
NET INCOME	$	7,325	$	7,306	$	6,687	$	14,631	$	12,992
BASIC EARNINGS PER SHARE	$	0.55	$	0.55	$	0.51	$	1.11	$	0.98
DILUTED EARNINGS PER SHARE	$	0.55	$	0.55	$	0.51	$	1.10	$	0.98
WEIGHTED AVERAGE SHARES OUTSTANDING	13,256,026		13,221,455		13,210,150		13,238,836		13,194,754
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING	13,263,604		13,237,493		13,230,812		13,246,359		13,216,084

GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
		Three Months Ended									Six Month Ended
		June 30,			March 31,			June 30,			June 30,			June 30,
		2015			2015			2014			2015			2014
EARNINGS PERFORMANCE RATIOS
	Annualized Return on Average Assets	1.31		%	1.31		%	1.24		%	1.31		%	1.21		%
	Annualized Return on Average Equity	12.27		%	12.53		%	12.68		%	12.40		%	12.50		%
	Net Interest Margin	3.72		%	3.72		%	3.74		%	3.72		%	3.76		%
	Efficiency Ratio (1)	55.74		%	56.05		%	57.83		%	55.90		%	59.02		%
	Net Overhead Expense to Average Earning Assets (2)	1.55		%	1.47		%	1.70		%	1.51		%	1.73		%
ASSET QUALITY RATIOS
	Annualized Net Charge-offs to Average Loans	0.04		%	—		%	0.04		%	0.02		%	(0.06		)%
	Allowance for Loan Losses to Period End Loans	1.04		%	1.05		%	1.10		%
	Non-performing Assets to Period End Assets	0.26		%	0.29		%	0.31		%
	Non-performing Loans to Period End Loans	0.37		%	0.42		%	0.42		%
	Loans 30-89 Days Past Due to Period End Loans	0.21		%	0.31		%	0.34		%
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA
	Average Assets	$	2,240,528		$	2,227,107		$	2,152,785		$	2,233,855		$	2,142,852
	Average Earning Assets	$	2,109,509		$	2,096,243		$	2,028,735		$	2,102,912		$	2,017,250
	Average Total Loans	$	1,456,699		$	1,443,886		$	1,390,185		$	1,450,328		$	1,380,825
	Average Demand Deposits	$	420,341		$	427,404		$	400,656		$	423,853		$	403,008
	Average Interest Bearing Liabilities	$	1,557,754		$	1,546,181		$	1,530,266		$	1,551,999		$	1,521,132
	Average Equity	$	238,731		$	233,175		$	210,960		$	235,968		$	207,806
	Period End Non-performing Assets (3)	$	5,763		$	6,398		$	6,904
	Period End Non-performing Loans (4)	$	5,446		$	6,074		$	5,969
	Period End Loans 30-89 Days Past Due (5)	$	3,025		$	4,547		$	4,728
	Tax Equivalent Net Interest Income	$	19,562		$	19,320		$	18,946		$	38,882		$	37,742
	Net Charge-offs during Period	$	161		$	10		$	134		$	171		$	(416	)
(1)	Efficiency Ratio is defined as Non-interest Expense divided by the sum of Net Interest Income, on a tax equivalent basis, and Non-interest Income.
(2)	Net Overhead Expense is defined as Total Non-interest Expense less Total Non-interest Income.
(3)	Non-performing assets are defined as Non-accrual Loans, Loans Past Due 90 days or more, Restructured Loans, and Other Real Estate Owned.
(4)	Non-performing loans are defined as Non-accrual Loans, Loans Past Due 90 days or more, and Restructured Loans.
(5)	Loans 30-89 days past due and still accruing.