Segment Information

9 Months Ended

Sep. 30, 2016

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 52 banking offices at September 30, 2016. 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 the trust operations of the Company's banking subsidiary and by German American Investment Services, Inc. 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 the Company which are used by management to monitor and manage financial performance. 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, 2016
Net Interest Income	$	24,721		$	—	$	2	$	(163	)	$	24,560
Net Gains on Sales of Loans	1,004			—		—		—			1,004
Net Gains on Securities	458			—		—		—			458
Trust and Investment Product Fees	(6		)	1,205		—		(8		)	1,191
Insurance Revenues	6			15		1,640		—			1,661
Noncash Items:
Provision for Loan Losses	—			—		—		—			—
Depreciation and Amortization	1,065			—		10		64			1,139
Income Tax Expense (Benefit)	4,249			51		80		(274		)	4,106
Segment Profit (Loss)	10,168			69		122		(174		)	10,185
Segment Assets at September 30, 2016	2,972,622			1,792		7,842		(2,716		)	2,979,540

	Core Banking			Trust and Investment Advisory Services			Insurance		Other			Consolidated Totals
Three Months Ended
September 30, 2015
Net Interest Income	$	18,961		$	—		$	2	$	(104	)	$	18,859
Net Gains on Sales of Loans	831			—			—		—			831
Net Gains on Securities	—			—			—		—			—
Trust and Investment Product Fees	1			1,053			—		(3		)	1,051
Insurance Revenues	8			15			1,729		—			1,752
Noncash Items:
Provision for Loan Losses	(500		)	—			—		—			(500		)
Depreciation and Amortization	980			2			27		38			1,047
Income Tax Expense (Benefit)	2,571			(1		)	84		(225		)	2,429
Segment Profit (Loss)	7,702			(14		)	140		(107		)	7,721
Segment Assets at December 31, 2015	2,367,296			1,338			7,022		(1,955		)	2,373,701

	Core Banking			Trust and Investment Advisory Services		Insurance		Other			Consolidated Totals
Nine Months Ended
September 30, 2016
Net Interest Income	$	70,492		$	—	$	5	$	(482	)	$	70,015
Net Gains on Sales of Loans	2,607			—		—		—			2,607
Net Gains on Securities	1,426			—		—		—			1,426
Trust and Investment Product Fees	(3		)	3,446		—		(8		)	3,435
Insurance Revenues	14			28		5,951		—			5,993
Noncash Items:
Provision for Loan Losses	1,200			—		—		—			1,200
Depreciation and Amortization	3,129			2		61		174			3,366
Income Tax Expense (Benefit)	10,349			115		648		(992		)	10,120
Segment Profit (Loss)	25,049			152		999		(1,081		)	25,119
Segment Assets at September 30, 2016	2,972,622			1,792		7,842		(2,716		)	2,979,540

	Core Banking		Trust and Investment Advisory Services			Insurance		Other			Consolidated Totals
Nine Months Ended
September 30, 2015
Net Interest Income	$	56,402	$	8		$	4	$	(300	)	$	56,114
Net Gains on Sales of Loans	2,364		—			—		—			2,364
Net Gains on Securities	698		—			—		27			725
Trust and Investment Product Fees	3		2,974			—		(3		)	2,974
Insurance Revenues	19		33			5,760		—			5,812
Noncash Items:
Provision for Loan Losses	—		—			—		—			—
Depreciation and Amortization	3,045		15			81		113			3,254
Income Tax Expense (Benefit)	8,709		(13		)	576		(604		)	8,668
Segment Profit (Loss)	21,650		(47		)	874		(125		)	22,352
Segment Assets at December 31, 2015	2,367,296		1,338			7,022		(1,955		)	2,373,701