UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[ X ] |
Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the Quarterly Period Ended September 30, 2004 Or |
[ ] |
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934 for the Transition Period from
to
|
Commission File Number 0-11244
German American Bancorp
(Exact name of registrant as specified in its charter)
INDIANA (State or other jurisdiction of incorporation or organization) |
35-1547518 (I.R.S. Employer Identification No.) |
711 Main Street, Jasper, Indiana 47546
(Address of Principal Executive Offices and Zip Code)
Registrant's telephone number, including area code: (812) 482-1314
Indicate by check whether the registrant (1) has filed all reports required to
be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES [X] NO [ ]
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
YES [X] NO [ ]
Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.
Class Common Stock, No par value |
Outstanding at November 1, 2004 10,898,241 |
1
GERMAN AMERICAN BANCORP
INDEX
PART I. FINANCIAL INFORMATION
| Item 1. |
Financial Statements Consolidated Balance Sheets — September 30, 2004 and December 31, 2003 Consolidated Statements of Income and Comprehensive Income — Three and Nine months Ended September 30, 2004 and 2003 Consolidated Statements of Cash Flows — Nine months Ended September 30, 2004 and 2003 Notes to Consolidated Financial Statements — September 30, 2004 |
| Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations. |
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk. |
| Item 4. | Controls and Procedures. |
PART II. OTHER INFORMATION
| Item 2. | Changes in Securities and Use of Proceeds |
| Item 6. | Exhibits and Reports on Form 8-K |
SIGNATURES
EXHIBIT INDEX
2
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
GERMAN AMERICAN BANCORP
CONSOLIDATED BALANCE SHEETS
(dollars in thousands except per share data)
| September 30, 2004 |
December 31, 2003 | |||||||
|---|---|---|---|---|---|---|---|---|
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Cash and Due from Banks | $ | 25,310 | $ | 28,729 | ||||
| Federal Funds Sold and Other Short-term Investments | 8,054 | 3,804 | ||||||
| Cash and Cash Equivalents | 33,364 | 32,533 | ||||||
| Securities Available-for-Sale, at Fair Value | 188,666 | 195,793 | ||||||
| Securities Held-to-Maturity, at Cost | 13,493 | 17,417 | ||||||
| Loans Held-for-Sale | 1,220 | 1,416 | ||||||
| Total Loans | 628,528 | 613,255 | ||||||
| Less: Unearned Income | (1,239 | ) | (1,389 | ) | ||||
| Allowance for Loan Losses | (8,897 | ) | (8,265 | ) | ||||
| Loans, Net | 618,392 | 603,601 | ||||||
| Stock in FHLB of Indianapolis and Other Restricted Stock, at Cost | 13,400 | 12,944 | ||||||
| Premises, Furniture and Equipment, Net | 20,729 | 21,605 | ||||||
| Other Real Estate | 207 | 749 | ||||||
| Goodwill | 1,794 | 1,794 | ||||||
| Intangible Assets | 2,485 | 2,804 | ||||||
| Company Owned Life Insurance | 18,408 | 17,831 | ||||||
| Accrued Interest Receivable and Other Assets | 15,429 | 17,459 | ||||||
| TOTAL ASSETS | $ | 927,587 | $ | 925,946 | ||||
| LIABILITIES | ||||||||
| Non-interest-bearing Demand Deposits | $ | 121,963 | $ | 112,689 | ||||
| Interest-bearing Demand, Savings, and Money Market Accounts | 282,895 | 266,652 | ||||||
| Time Deposits under $100,000 | 258,428 | 283,959 | ||||||
| Time Deposits $100,000 or more and Brokered Deposits | 61,496 | 53,833 | ||||||
| Total Deposits | 724,782 | 717,133 | ||||||
| FHLB Advances and Other Borrowings | 107,137 | 112,559 | ||||||
| Accrued Interest Payable and Other Liabilities | 11,962 | 13,128 | ||||||
| TOTAL LIABILITIES | 843,881 | 842,820 | ||||||
| SHAREHOLDERS' EQUITY | ||||||||
| Common Stock, no par value, $1 stated value; | ||||||||
| 20,000,000 shares authorized | 10,898 | 10,933 | ||||||
| Preferred Stock, $10 par value; 500,000 | ||||||||
| shares authorized, no shares issued | --- | --- | ||||||
| Additional Paid-in Capital | 67,131 | 67,532 | ||||||
| Retained Earnings | 6,487 | 4,653 | ||||||
| Accumulated Other Comprehensive Income / (Loss) | (810 | ) | 8 | |||||
| TOTAL SHAREHOLDERS' EQUITY | 83,706 | 83,126 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 927,587 | $ | 925,946 | ||||
| End of period shares issued and outstanding | 10,898,241 | 10,932,882 | ||||||
See accompanying notes to consolidated financial statements.
3
GERMAN AMERICAN BANCORP
CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(unaudited, dollars in thousands except per share data)
| Three Months Ended September 30, |
||||||||
|---|---|---|---|---|---|---|---|---|
| 2004 |
2003 | |||||||
| INTEREST INCOME | ||||||||
| Interest and Fees on Loans | $ | 9,833 | $ | 10,301 | ||||
| Interest on Federal Funds Sold and Other Short-term Investments | 21 | 66 | ||||||
| Interest and Dividends on Securities: | ||||||||
| Taxable | 1,412 | 997 | ||||||
| Non-taxable | 691 | 840 | ||||||
| TOTAL INTEREST INCOME | 11,957 | 12,204 | ||||||
| INTEREST EXPENSE | ||||||||
| Interest on Deposits | 2,818 | 3,381 | ||||||
| Interest on FHLB Advances and Other Borrowings | 1,239 | 1,798 | ||||||
| TOTAL INTEREST EXPENSE | 4,057 | 5,179 | ||||||
| NET INTEREST INCOME | 7,900 | 7,025 | ||||||
| Provision for Loan Losses | 288 | 266 | ||||||
| NET INTEREST INCOME AFTER PROVISION | ||||||||
| FOR LOAN LOSSES | 7,612 | 6,759 | ||||||
| NON-INTEREST INCOME | ||||||||
| Trust and Investment Product Fees | 516 | 411 | ||||||
| Service Charges on Deposit Accounts | 913 | 967 | ||||||
| Insurance Revenues | 1,105 | 846 | ||||||
| Other Operating Income | 321 | 901 | ||||||
| Gain on Sales of Loans and Related Assets | 278 | 1,128 | ||||||
| Gain on Sales of Securities | -- | 54 | ||||||
| TOTAL NON-INTEREST INCOME | 3,133 | 4,307 | ||||||
| NON-INTEREST EXPENSE | ||||||||
| Salaries and Employee Benefits | 4,534 | 4,503 | ||||||
| Occupancy Expense | 624 | 567 | ||||||
| Furniture and Equipment Expense | 521 | 527 | ||||||
| Data Processing Fees | 283 | 276 | ||||||
| Professional Fees | 417 | 336 | ||||||
| Advertising and Promotions | 225 | 227 | ||||||
| Supplies | 115 | 162 | ||||||
| Net Loss on Extinguishment of Borrowings | -- | 914 | ||||||
| Other Operating Expenses | 1,118 | 1,036 | ||||||
| TOTAL NON-INTEREST EXPENSE | 7,837 | 8,548 | ||||||
| Income before Income Taxes | 2,908 | 2,518 | ||||||
| Income Tax Expense | 532 | 365 | ||||||
| NET INCOME | $ | 2,376 | $ | 2,153 | ||||
| COMPREHENSIVE INCOME | $ | 4,694 | $ | 1,334 | ||||
| Earnings Per Share and Diluted Earnings Per Share | $ | 0.22 | $ | 0.20 | ||||
| Dividends Per Share | $ | 0.14 | $ | 0.13 | ||||
See accompanying notes to consolidated financial statements.
4
GERMAN AMERICAN BANCORP
CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(unaudited, dollars in thousands except per share data)
| Nine Months Ended September 30, |
||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2004 |
2003 | |||||||||
| INTEREST INCOME | ||||||||||
| Interest and Fees on Loans | $ | 29,280 | $ | 31,830 | ||||||
| Interest on Federal Funds Sold and Other Short-term Investments | 69 | 204 | ||||||||
| Interest and Dividends on Securities: | ||||||||||
| Taxable | 4,093 | 3,778 | ||||||||
| Non-taxable | 2,179 | 2,698 | ||||||||
| TOTAL INTEREST INCOME | 35,621 | 38,510 | ||||||||
| INTEREST EXPENSE | ||||||||||
| Interest on Deposits | 8,937 | 10,751 | ||||||||
| Interest on FHLB Advances and Other Borrowings | 3,571 | 5,614 | ||||||||
| TOTAL INTEREST EXPENSE | 12,508 | 16,365 | ||||||||
| NET INTEREST INCOME | 23,113 | 22,145 | ||||||||
| Provision for Loan Losses | 1,528 | 495 | ||||||||
| NET INTEREST INCOME AFTER PROVISION | ||||||||||
| FOR LOAN LOSSES | 21,585 | 21,650 | ||||||||
| NON-INTEREST INCOME | ||||||||||
| Trust and Investment Product Fees | 1,492 | 1,215 | ||||||||
| Service Charges on Deposit Accounts | 2,641 | 2,479 | ||||||||
| Insurance Revenues | 3,377 | 2,446 | ||||||||
| Other Operating Income | 1,617 | 1,013 | ||||||||
| Gain on Sales of Loans and Related Assets | 823 | 2,434 | ||||||||
| Gain on Sales of Securities | 5 | 77 | ||||||||
| TOTAL NON-INTEREST INCOME | 9,955 | 9,664 | ||||||||
| NON-INTEREST EXPENSE | ||||||||||
| Salaries and Employee Benefits | 13,644 | 13,344 | ||||||||
| Occupancy Expense | 1,862 | 1,784 | ||||||||
| Furniture and Equipment Expense | 1,631 | 1,638 | ||||||||
| Data Processing Fees | 888 | 833 | ||||||||
| Professional Fees | 1,269 | 945 | ||||||||
| Advertising and Promotions | 649 | 643 | ||||||||
| Supplies | 404 | 472 | ||||||||
| Net Loss on Extinguishment of Borrowings | --- | 914 | ||||||||
| Other Operating Expenses | 3,108 | 2,813 | ||||||||
| TOTAL NON-INTEREST EXPENSE | 23,455 | 23,386 | ||||||||
| Income before Income Taxes | 8,085 | 7,928 | ||||||||
| Income Tax Expense | 1,425 | 1,294 | ||||||||
| NET INCOME | $ | 6,660 | $ | 6,634 | ||||||
| COMPREHENSIVE INCOME | $ | 5,842 | $ | 4,582 | ||||||
| Earnings Per Share and Diluted Earnings Per Share | $ | 0.61 | $ | 0.59 | ||||||
| Dividends Per Share | $ | 0.42 | $ | 0.40 | ||||||
See accompanying notes to consolidated financial statements.
5
GERMAN AMERICAN BANCORP
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, dollars in thousands)
| Nine Months Ended September 30, | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2004 |
2003 |
|||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
| Net Income | $ | 6,660 | $ | 6,634 | ||||||
| Adjustments to Reconcile Net Income to Net Cash from Operating Activities: | ||||||||||
| Net Amortization on Securities | 853 | 1,811 | ||||||||
| Depreciation and Amortization | 2,065 | 1,854 | ||||||||
| Amortization and Impairment of Mortgage Servicing Rights | 378 | 607 | ||||||||
| Net Change in Loans Held for Sale | (306 | ) | 10,318 | |||||||
| Loss on Investment in Limited Partnership | 111 | 154 | ||||||||
| Provision for Loan Losses | 1,528 | 495 | ||||||||
| Gain on Sale of Securities, net | (5 | ) | (77 | ) | ||||||
| Loss/(Gain) on Sale of Other Real Estate and Repossessed Assets | (50 | ) | 133 | |||||||
| Loss/(Gain) on Disposition and Impairment of Premises and Equipment | (3 | ) | 13 | |||||||
| Loss on Extinguishment of Borrowings | --- | 914 | ||||||||
| Director Stock Awards | --- | 304 | ||||||||
| Increase in Cash Surrender Value of Company Owned Life Insurance | ||||||||||
| (COLI) | (577 | ) | (254 | ) | ||||||
| Change in Assets and Liabilities: | ||||||||||
| Interest Receivable and Other Assets | 2,455 | 1,633 | ||||||||
| Interest Payable and Other Liabilities | (1,166 | ) | (358 | ) | ||||||
| Net Cash from Operating Activities | 11,943 | 24,181 | ||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
| Proceeds from Maturities of Securities Available-for-Sale | 24,609 | 133,271 | ||||||||
| Proceeds from Sales of Securities Available-for-Sale | 1,986 | 13,186 | ||||||||
| Purchase of Securities Available-for-Sale | (22,000 | ) | &nbs | |||||||