Attached files
| file | filename |
|---|---|
| 8-K - GERMAN AMERICAN BANCORP, INC. | v209808_8k.htm |
GERMAN
AMERICAN BANCORP, 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
|
February
1, 2011
|
GERMAN
AMERICAN BANCORP, INC.,
|
|
REPORTS
RECORD 2010 PERFORMANCE
|
Summary
German
American Bancorp, Inc. (NASDAQ: GABC) reported today that it had achieved 2010
net income at an all-time record level of $13.4 million, or $1.21 per share, a
10% increase over the Company’s 2009 net income of $12.2 million, or $1.10 per
share. The Company’s return on average equity for 2010 was 11.18%,
representing the 6th
consecutive year the Company has achieved a double-digit return.
The
record 2010 performance was driven by an improvement in the level of the
Company’s core operating results, derived from increased revenues in both net
interest income and non-interest income. The Company’s 2010 net
interest income increased by $4.2 million while its non-interest income
reflected a $1.1 million improvement from the levels reported in the prior
year. The higher level of net interest income was the result of both
an 8% increase in the level of the Company’s average earning assets, and a
widening of the Company’s tax-equivalent net interest margin to 3.98% (up from
3.95% in 2009). The increased non-interest income was largely
attributable to an approximately $400 thousand increase in the gain from the
sale of secondary market residential mortgage loans, and a $500 thousand
increase in gains on the sale of other real estate.
Commenting
on the Company’s achievement of yet another record performance, Mark A.
Schroeder, Chairman & CEO of German American, stated, “We are truly
gratified that, in this our Company’s 100th
anniversary year, we have been able to achieve this all-time record level of
performance. In fact, the past three years have been the best
three-year period in our history. This feat is truly remarkable in
the face of the economic challenges our nation has faced during this period. The
accomplishment of this achievement is due to the fiscal responsibility of our
customers, the economic viability of the Southern Indiana communities we serve,
and the commitment of our staff of dedicated financial
professionals. We are extremely grateful to each of these important
constituents for their contribution to our success.”
1 of
13
GERMAN
AMERICAN BANCORP, 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
Schroeder
continued, “We are pleased with our prospects for continued success not only
within our legacy markets, but also in our newest market presence in the
Evansville, Indiana market area. Effective January 1, 2011, we
finalized our previously reported acquisition of the Bank of Evansville, and now
have 5 banking offices located throughout the Evansville market. We
are excited about the opportunities our entry into this new market area will
afford us not only within banking but also relative to the expansion of our
insurance and investment lines of business.”
The
Company also announced that its Board of Directors declared its regular
quarterly cash dividend of $0.14 per share which will be payable on February 20,
2011 to shareholders of record as of February 10, 2011.
Balance
Sheet Highlights
The following balance sheet
highlights as of December 31, 2010, do not include the impact of the acquisition
of American Community Bancorp, Inc., and its consolidated subsidiaries,
including Bank of Evansville, which were acquired on January 1,
2011.
Total
assets for the Company increased by approximately $132.9 million or 11% as of
December 31, 2010 compared with year-end 2009. The increase was
largely attributable to an increase in the Company’s core deposit base due to
both internal organic growth and the May 2010 acquisition of two branch office
locations in the Evansville (Indiana) banking market.
Year-end
2010 loans outstanding increased approximately $39.2 million or 4% compared with
year-end 2009. The overall increase in the loan portfolio was largely
driven by the May 2010 branch acquisition, pursuant to which the Company
acquired approximately $44 million in loans.
|
End
of Period Loan Balances
|
||||||||||||||||
|
12/31/10
|
12/31/09
|
$ Change
|
% Change
|
|||||||||||||
|
Commercial
& Industrial Loans
|
$ | 217,988 | $ | 188,962 | $ | 29,026 | 15 | % | ||||||||
|
Commercial
Real Estate Loans
|
340,074 | 334,255 | 5,819 | 2 | % | |||||||||||
|
Agricultural
Loans
|
165,102 | 156,845 | 8,257 | 5 | % | |||||||||||
|
Consumer
Loans
|
118,244 | 114,736 | 3,508 | 3 | % | |||||||||||
|
Residential
Mortgage Loans
|
77,310 | 84,677 | (7,367 | ) | -9 | % | ||||||||||
| $ | 918,718 | $ | 879,475 | $ | 39,243 | 4 | % | |||||||||
2 of
13
GERMAN
AMERICAN BANCORP, 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
Non-performing
assets totaled $13.3 million at December 31, 2010 compared to $11.2 million of
non-performing assets at December 31, 2009. Non-performing assets
represented 0.97% of total assets at December 31, 2010 compared to 0.90% at
year-end 2009. Non-performing loans totaled $11.2 million at December
31, 2010 compared to $8.8 million of non-performing loans at December 31,
2009. Non-performing loans represented 1.22% of total outstanding
loans at year-end 2010 compared with 1.00% of total loans outstanding at
year-end 2009. The most significant cause of the increase in
non-performing assets and loans was related to two commercial real estate
credits that were placed on non-accrual status prior to the fourth quarter of
2010 that totaled approximately $4.5 million.
The
Company’s allowance for loan losses totaled $13.3 million at December 31, 2010
representing an increase of $2.3 million or 21% from year-end
2009. The allowance for loan losses represented 1.45% of period-end
loans at December 31, 2010 compared with 1.25% at December 31,
2009. The allowance for loan losses represented 119% of period-end
non-performing loans at December 31, 2010.
Year-end
2010 deposits increased $117.6 million or 12% compared with year-end 2009 total
deposits. The increase was primarily attributable to an increase in
core deposits from within the Company’s market areas, and further augmented by
approximately $51 million of deposits acquired in early May 2010 as a part of
the branch acquisition transaction, of which a majority were core
deposits.
|
End
of Period Deposit Balances
|
||||||||||||||||
|
12/31/10
|
12/31/09
|
$ Change
|
% Change
|
|||||||||||||
|
Non-interest-bearing
Demand Deposits
|
$ | 184,204 | $ | 155,268 | $ | 28,936 | 19 | % | ||||||||
|
Interest-bearing
Demand, Savings, & Money Market Accounts
|
541,532 | 484,699 | 56,833 | 12 | % | |||||||||||
|
Time
Deposits < $100,000
|
272,964 | 256,401 | 16,563 | 6 | % | |||||||||||
|
Time
Deposits of $100,000 or more & Brokered Deposits
|
88,586 | 73,275 | 15,311 | 21 | % | |||||||||||
| $ | 1,087,286 | $ | 969,643 | $ | 117,643 | 12 | % | |||||||||
3 of
13
GERMAN
AMERICAN BANCORP, 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
Results
of Operations Highlights
Year
ended December 31, 2010 compared to Year ended December 31,
2009
Net
income for the year ended December 31, 2010 totaled $13,405,000, an increase of
$1,187,000 or 10% from the year ended December 31, 2009 net income of
$12,218,000.
|
Summary
Average Balance Sheet
|
||||||||||||||||||||||||
|
(Tax-equivalent
basis / $ in thousands)
|
||||||||||||||||||||||||
|
YTD
December 31, 2010
|
YTD
December 31, 2009
|
|||||||||||||||||||||||
|
Principal
|
Income/
|
Yield/
|
Principal
|
Income/
|
Yield/
|
|||||||||||||||||||
|
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
|||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Federal
Funds Sold and Other Short-term Investments
|
$ | 41,020 | $ | 76 | 0.19 | % | $ | 41,085 | $ | 106 | 0.26 | % | ||||||||||||
|
Securities
|
294,754 | 11,387 | 3.86 | % | 215,994 | 10,274 | 4.76 | % | ||||||||||||||||
|
Loans
and Leases
|
906,127 | 53,540 | 5.91 | % | 891,322 | 54,166 | 6.08 | % | ||||||||||||||||
|
Total
Interest Earning Assets
|
$ | 1,241,901 | $ | 65,003 | 5.23 | % | $ | 1,148,401 | $ | 64,546 | 5.62 | % | ||||||||||||
|
Liabilities
|
||||||||||||||||||||||||
|
Demand
Deposit Accounts
|
$ | 173,091 | $ | 149,673 | ||||||||||||||||||||
|
Interest-bearing
Demand, Savings, and Money Market Accounts
|
$ | 518,965 | $ | 1,688 | 0.33 | % | $ | 473,214 | $ | 3,241 | 0.68 | % | ||||||||||||
|
Time
Deposits
|
354,239 | 8,873 | 2.50 | % | 341,041 | 10,254 | 3.01 | % | ||||||||||||||||
|
FHLB
Advances and Other Borrowings
|
150,737 | 4,961 | 3.29 | % | 143,332 | 5,728 | 4.00 | % | ||||||||||||||||
|
Total
Interest-Bearing Liabilities
|
$ | 1,023,941 | $ | 15,522 | 1.52 | % | $ | 957,587 | $ | 19,223 | 2.01 | % | ||||||||||||
|
Cost
of Funds
|
1.25 | % | 1.67 | % | ||||||||||||||||||||
|
Net
Interest Income
|
$ | 49,481 | $ | 45,323 | ||||||||||||||||||||
|
Net
Interest Margin
|
3.98 | % | 3.95 | % | ||||||||||||||||||||
During
the year ended December 31, 2010, net interest income totaled $48,671,000
representing an increase of $4,158,000 or 9% from the year ended December 31,
2009 net interest income of $44,513,000. The tax equivalent net
interest margin for the year ended December 31, 2010 was 3.98% compared to 3.95%
in 2009. The increased net interest income was largely the result of
a higher level of earning assets largely driven by growth in the Company’s core
deposit base.
The provision for loan loss totaled
$5,225,000 during the year ended December 31, 2010 representing an increase of
$1,475,000 or 39% from the year ended December 31, 2009. During 2010,
the provision for loan loss represented approximately 58 basis points of average
loans while net charge-offs represented approximately 32 basis points of average
loans.
4 of
13
GERMAN
AMERICAN BANCORP, 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
During
the year ended December 31, 2010, non-interest income increased approximately 7%
from the year ended December 31, 2009.
|
Non-interest
Income
|
YTD
|
YTD
|
||||||||||||||
|
12/31/10
|
12/31/09
|
$ Change
|
% Change
|
|||||||||||||
|
Trust
and Investment Product Fees
|
$ | 1,582 | $ | 1,617 | $ | (35 | ) | -2 | % | |||||||
|
Service
Charges on Deposit Accounts
|
4,065 | 4,395 | (330 | ) | -8 | % | ||||||||||
|
Insurance
Revenues
|
5,347 | 5,296 | 51 | 1 | % | |||||||||||
|
Company
Owned Life Insurance
|
806 | 1,104 | (298 | ) | -27 | % | ||||||||||
|
Other
Operating Income
|
2,983 | 2,110 | 873 | 41 | % | |||||||||||
|
Subtotal
|
14,783 | 14,522 | 261 | 2 | % | |||||||||||
|
Net
Gains on Sales of Loans and Related
Assets
|
2,160 | 1,760 | 400 | 23 | % | |||||||||||
|
Net
Gain (Loss) on Securities
|
— | (423 | ) | 423 | -100 | % | ||||||||||
|
Total
Non-interest Income
|
$ | 16,943 | $ | 15,859 | $ | 1,084 | 7 | % | ||||||||
Deposit
service charges and fees declined approximately 8% during 2010 compared with
2009 due to decreased customer utilization of the Company’s overdraft protection
program and to a lesser degree changes implemented in the program during the
third quarter of 2010 related to Regulation E. Company owned life insurance
income declined 27% during 2010 compared with 2009 as a result of death benefits
received from life insurance policies during 2009.
Other
operating income increased $873,000 or 41% during the year ended December 31,
2010 compared with the year ended December 31, 2009. This increase
was due primarily to a net gain on the sale of other real estate during 2010
compared with a net loss during 2009, representing an approximately $511,000
difference year over year, and an approximately $274,000 increase in net
interchange revenues during 2010 compared with 2009.
The net
gain on sales of loans increased $400,000 or 23% in the year ended December 31,
2010 compared with the year ended December 31, 2009 due to strong residential
mortgage loan sales and improved pricing on those loans sold and those loans
held for sale. Loans sales totaled $119.3 million during 2010 and
$143.6 million during 2009.
The net
loss on securities during 2009 was related to the recognition of
other-than-temporary impairment charges on the Company’s portfolio of
non-controlling investments in other banking organizations.
5 of
13
GERMAN
AMERICAN BANCORP, 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
During
the year ended December 31, 2010, non-interest expense increased approximately
2% compared with the year ended December 31, 2009.
|
Non-interest
Expense
|
YTD
|
YTD
|
||||||||||||||
|
12/31/10
|
12/31/09
|
$ Change
|
% Change
|
|||||||||||||
|
Salaries
and Employee Benefits
|
$ | 22,070 | $ | 21,961 | $ | 109 |
—
|
% | ||||||||
|
Occupancy,
Furniture and Equipment Expense
|
6,083 | 6,035 | 48 | 1 | % | |||||||||||
|
FDIC
Premiums
|
1,455 | 1,863 | (408 | ) | -22 | % | ||||||||||
|
Data
Processing Fees
|
1,411 | 1,368 | 43 | 3 | % | |||||||||||
|
Professional
Fees
|
2,285 | 1,740 | 545 | 31 | % | |||||||||||
|
Advertising
and Promotion
|
1,255 | 993 | 262 | 26 | % | |||||||||||
|
Intangible
Amortization
|
898 | 909 | (11 | ) | -1 | % | ||||||||||
|
Other
Operating Expenses
|
5,904 | 5,522 | 382 | 7 | % | |||||||||||
|
Total
Non-interest Expense
|
$ | 41,361 | $ | 40,391 | $ | 970 | 2 | % | ||||||||
The
Company’s FDIC deposit insurance assessments decreased $408,000, or 22%, during
2010 compared with 2009. This decrease was due to an industry-wide
special assessment in the second quarter of 2009 of approximately $550,000 which
represented 5 basis points of the Company’s subsidiary bank’s total assets less
Tier 1 Capital.
Professional
fees increased $545,000 or 31% during the year ended December 31, 2010 compared
with 2009 primarily as a result of professional fees associated with the
acquisition of American Community Bancorp, Inc. effective January 1, 2011 and
the acquisition of two branch offices during the second quarter of
2010.
Advertising
and promotion increased 26% in the year ended December 31, 2010 compared with
2009 largely as a result of the Company’s common identity initiative and the
acquisition of two branch offices in a new market for the Company during the
second quarter of 2010.
Other
operating expenses increased approximately 7% during the year ended December 31,
2010 compared with the year ended December 31, 2009. The increase was
largely attributable to costs related to the Company’s common identity
initiative that was undertaken during 2010.
6 of
13
GERMAN
AMERICAN BANCORP, 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
Quarter
ended December 31, 2010 compared to quarter ended September 30,
2010
Net
income for the quarter ended December 31, 2010 totaled $3,152,000, a decline of
$442,000 or 12% from third quarter 2010 net income of $3,594,000.
|
Summary
Average Balance Sheet
|
||||||||||||||||||||||||
|
(Tax-equivalent
basis / $ in thousands)
|
||||||||||||||||||||||||
|
Quarter
Ended December 31, 2010
|
Quarter
Ended September 30, 2010
|
|||||||||||||||||||||||
|
Principal
|
Income/
|
Yield/
|
Principal
|
Income/
|
Yield/
|
|||||||||||||||||||
|
Balance
|
Expense
|
Rate
|
Balance
|
Expense
|
Rate
|
|||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Federal
Funds Sold and Other Short-term Investments
|
$ | 61,349 | $ | 28 | 0.18 | % | $ | 25,241 | $ | 12 | 0.19 | % | ||||||||||||
|
Securities
|
323,674 | 2,857 | 3.53 | % | 314,705 | 2,804 | 3.56 | % | ||||||||||||||||
|
Loans
and Leases
|
922,672 | 13,632 | 5.87 | % | 921,687 | 13,737 | 5.92 | % | ||||||||||||||||
|
Total
Interest Earning Assets
|
$ | 1,307,695 | $ | 16,517 | 5.02 | % | $ | 1,261,633 | $ | 16,553 | 5.22 | % | ||||||||||||
|
Liabilities
|
||||||||||||||||||||||||
|
Demand
Deposit Accounts
|
$ | 194,254 | $ | 180,147 | ||||||||||||||||||||
|
Interest-bearing
Demand, Savings, and Money Market Accounts
|
$ | 562,673 | $ | 399 | 0.28 | % | $ | 523,265 | $ | 402 | 0.30 | % | ||||||||||||
|
Time
Deposits
|
361,160 | 2,222 | 2.44 | % | 359,466 | 2,240 | 2.47 | % | ||||||||||||||||
|
FHLB
Advances and Other Borrowings
|
142,791 | 1,063 | 2.95 | % | 154,011 | 1,236 | 3.18 | % | ||||||||||||||||
|
Total
Interest-Bearing Liabilities
|
$ | 1,066,624 | $ | 3,684 | 1.37 | % | $ | 1,036,742 | $ | 3,878 | 1.48 | % | ||||||||||||
|
Cost
of Funds
|
1.12 | % | 1.22 | % | ||||||||||||||||||||
|
Net
Interest Income
|
$ | 12,833 | $ | 12,675 | ||||||||||||||||||||
|
Net
Interest Margin
|
3.90 | % | 4.00 | % | ||||||||||||||||||||
During
the quarter ended December 31, 2010, net interest income totaled $12,630,000
representing an increase of $153,000 or 1% from the third quarter of
2010. The tax equivalent net interest margin for the fourth quarter
of 2010 was 3.90% compared to 4.00% in the third quarter of 2010. The increased
net interest income was largely the result of a higher level of earning assets
driven by growth in the Company’s core deposit base. The decline in
the net interest margin was largely attributable to an increase in the Company’s
federal funds sold position driven by core deposit growth and a decline in loan
yields related to the continued low interest rate environment.
The
provision for loan loss totaled $1,350,000 during the quarter ended December 31,
2010 compared with $1,375,000 during the quarter ended September 30, 2010
representing an decline of approximately 2%.
7 of
13
GERMAN
AMERICAN BANCORP, 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
During
the quarter ended December 31, 2010, non-interest income decreased 7% compared
to the third quarter of 2010.
|
Non-interest
Income
|
Qtr Ended
|
Qtr Ended
|
||||||||||||||
|
12/31/10
|
09/30/10
|
$ Change
|
% Change
|
|||||||||||||
|
Trust
and Investment Product Fees
|
$ | 448 | $ | 348 | $ | 100 | 29 | % | ||||||||
|
Service
Charges on Deposit Accounts
|
991 | 1,053 | (62 | ) | -6 | % | ||||||||||
|
Insurance
Revenues
|
1,255 | 1,323 | (68 | ) | -5 | % | ||||||||||
|
Company
Owned Life Insurance
|
221 | 197 | 24 | 12 | % | |||||||||||
|
Other
Operating Income
|
684 | 710 | (26 | ) | -4 | % | ||||||||||
|
Subtotal
|
3,599 | 3,631 | (32 | ) | -1 | % | ||||||||||
|
Net
Gains on Sales of Loans and Related
Assets
|
541 | 802 | (261 | ) | -33 | % | ||||||||||
|
Net
Gain (Loss) on Securities
|
— | — | — |
—
|
% | |||||||||||
|
Total
Non-interest Income
|
$ | 4,140 | $ | 4,433 | $ | (293 | ) | -7 | % | |||||||
Trust and
investment product fees increased 29% during the quarter ended December 31,
2010, compared with the third quarter 2010 due primarily to improved retail
brokerage revenues.
The net
gain of sales of loans decreased 33% in the quarter ended December 31, 2010
compared with the third quarter of 2010. The decline was largely
attributable to a lower pipeline of residential mortgage loans to be originated
and sold and a lower level of loans held for sale as of year end 2010 compared
with September 30, 2010. Loans sales totaled $43.9 million during the
fourth quarter of 2010 compared to $39.6 million during the third quarter of
2010.
During the quarter ended December 31,
2010, non-interest expense increased approximately 3% compared with the third
quarter of 2010.
8 of
13
GERMAN
AMERICAN BANCORP, 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
|
Non-interest
Expense
|
Qtr Ended
|
Qtr Ended
|
||||||||||||||
|
12/31/10
|
09/30/10
|
$ Change
|
% Change
|
|||||||||||||
|
Salaries
and Employee Benefits
|
$ | 5,763 | $ | 5,470 | $ | 293 | 5 | % | ||||||||
|
Occupancy,
Furniture and Equipment Expense
|
1,572 | 1,537 | 35 | 2 | % | |||||||||||
|
FDIC
Premiums
|
412 | 355 | 57 | 16 | % | |||||||||||
|
Data
Processing Fees
|
357 | 330 | 27 | 8 | % | |||||||||||
|
Professional
Fees
|
542 | 698 | (156 | ) | -22 | % | ||||||||||
|
Advertising
and Promotion
|
363 | 350 | 13 | 4 | % | |||||||||||
|
Intangible
Amortization
|
171 | 262 | (91 | ) | -35 | % | ||||||||||
|
Other
Operating Expenses
|
1,572 | 1,439 | 133 | 9 | % | |||||||||||
|
Total
Non-interest Expense
|
$ | 10,752 | $ | 10,441 | $ | 311 | 3 | % | ||||||||
Salaries
and benefits expense increased approximately 5% during the fourth quarter of
2010 compared with the third quarter of 2010. The increase was
largely attributable to year-end adjustments for incentive plans and employee
benefits paid in conjunction with the Company’s 100th year
anniversary.
Professional
fees decreased $156,000 or 22% during the quarter ended December 31, 2010
compared with the third quarter of 2010 primarily as a result of a modestly
lower level of professional fees associated with the acquisition of American
Community Bancorp, Inc. and a general decline in other professional
fees.
Intangible
amortization decreased $91,000 or 35% during the fourth quarter of 2010 compared
with the third quarter of 2010 as a result of the full amortization as of
September 30, 2010 of customer list intangible for two insurance agencies
purchased in 2003.
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 33 retail banking
offices in 12 contiguous southern Indiana counties. The Company also owns a
trust, brokerage, and financial planning subsidiary (German American Financial
Advisors & Trust Company) and a full line property and casualty insurance
agency (German American Insurance, Inc.).
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13
GERMAN
AMERICAN BANCORP, 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
Cautionary
Note Regarding Forward-Looking Statements
The
Company's statements in this press release regarding German American’s prospects
for continued success, both in its legacy markets and in its new market presence
in Evansville, Indiana arising from its May 2010 branch purchase transaction and
its January 2011 acquisition of Bank of Evansville (and its opportunities to
expand its insurance and investment lines of business in that new market area)
are "forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. 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 the Company's actual future experiences in its Evansville market to
be less successful than expected by management include risks incident to any
acquisition transaction, such as the risks that Bank of Evansville's operations
may not be integrated successfully into German American's operations or such
integration may be more difficult, time-consuming or costly than expected,
including possible disruption of employee or customer relationships that could
result in decreased revenues if such disruption results in loss of customers;
management's previously-announced expected cost savings from the Bank of
Evansville transaction may not be fully realized or realized within the expected
timeframe; management's previously-announced expectations that net interest
income of the Company might improve as a result of the Bank of Evansville
transaction might be not realized or delayed, in part or in whole,
due to possible market factors that could dictate that German American delay or
alter projected deposit pricing strategies in the Evansville market; and the
final valuations of the acquired assets and assumed liabilities for accounting
purposes under the acquisition method of accounting as applied to the January
2011 acquisition may differ materially from the preliminary valuations assumed
by management’s models, and such valuation differences may result in material
changes (including possible material adverse changes) in German American’s
actual future results of operations compared to those projected by it under its
models. Other factors that could cause actual experiences to differ
from the expectations stated or implied in this press release include 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, including the intended strategies of
expanding the Company's insurance and investment lines of business in the
Evansville market; changes in customer borrowing, repayment, investment and
deposit practices; changes in fiscal, monetary and tax policies; changes in
financial and capital markets; continued deterioration in general economic
conditions, either nationally or locally, resulting in, among other things,
credit quality deterioration and dampened loan demand; actions of the Federal
Reserve Board; changes in accounting principles and interpretations; and actions
of federal regulatory agencies under the Federal Deposit Insurance Act, the
Dodd-Frank Wall Street Reform and Consumer Protection Act, and other legislative
and regulatory actions and reforms. These forward-looking statements speak only
as of the date of this press release and German American undertakes no
obligation to update any such forward-looking statement to reflect events or
circumstances that occur after the date hereof.
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13
GERMAN
AMERICAN BANCORP, INC.
(unaudited,
dollars in thousands except per share data)
Consolidated
Balance Sheets
|
December 31,
|
September 30,
|
December 31,
|
||||||||||
|
2010
|
2010
|
2009
|
||||||||||
|
ASSETS
|
||||||||||||
|
Cash
and Due from Banks
|
$ | 15,021 | $ | 19,203 | $ | 16,052 | ||||||
|
Short-term
Investments
|
4,250 | 26,112 | 12,002 | |||||||||
|
Investment
Securities
|
348,351 | 302,673 | 253,714 | |||||||||
|
Loans
Held-for-Sale
|
11,850 | 13,627 | 5,706 | |||||||||
|
Loans,
Net of Unearned Income
|
917,236 | 913,623 | 877,822 | |||||||||
|
Allowance
for Loan Losses
|
(13,317 | ) | (11,700 | ) | (11,016 | ) | ||||||
|
Net
Loans
|
903,919 | 901,923 | 866,806 | |||||||||
|
Stock
in FHLB and Other Restricted Stock
|
9,207 | 10,621 | 10,621 | |||||||||
|
Premises
and Equipment
|
25,974 | 26,784 | 22,153 | |||||||||
|
Goodwill
and Other Intangible Assets
|
12,459 | 12,630 | 12,273 | |||||||||
|
Other
Assets
|
44,857 | 42,411 | 43,638 | |||||||||
|
TOTAL
ASSETS
|
$ | 1,375,888 | $ | 1,355,984 | $ | 1,242,965 | ||||||
|
LIABILITIES
|
||||||||||||
|
Non-interest-bearing
Demand Deposits
|
$ | 184,204 | $ | 187,363 | $ | 155,268 | ||||||
|
Interest-bearing
Demand, Savings, and Money Market Accounts
|
541,532 | 532,877 | 484,699 | |||||||||
|
Time
Deposits
|
361,550 | 362,608 | 329,676 | |||||||||
|
Total
Deposits
|
1,087,286 | 1,082,848 | 969,643 | |||||||||
|
Borrowings
|
153,717 | 137,173 | 148,121 | |||||||||
|
Other
Liabilities
|
13,351 | 13,090 | 11,652 | |||||||||
|
TOTAL
LIABILITIES
|
1,254,354 | 1,233,111 | 1,129,416 | |||||||||
|
SHAREHOLDERS'
EQUITY
|
||||||||||||
|
Common
Stock and Surplus
|
80,402 | 80,194 | 79,893 | |||||||||
|
Retained
Earnings
|
36,232 | 34,635 | 29,041 | |||||||||
|
Accumulated
Other Comprehensive Income
|
4,900 | 8,044 | 4,615 | |||||||||
|
TOTAL
SHAREHOLDERS' EQUITY
|
121,534 | 122,873 | 113,549 | |||||||||
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 1,375,888 | $ | 1,355,984 | $ | 1,242,965 | ||||||
|
END
OF PERIOD SHARES OUTSTANDING
|
11,105,583 | 11,104,918 | 11,077,382 | |||||||||
|
BOOK
VALUE PER SHARE
|
$ | 10.94 | $ | 11.06 | $ | 10.25 | ||||||
11 of
13
(unaudited,
dollars in thousands except per share data)
Consolidated
Statements of Income
|
Three Months Ended
|
Year Ended
|
|||||||||||||||||||
|
December 31,
|
September 30,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||||||
|
2010
|
2010
|
2009
|
2010
|
2009
|
||||||||||||||||
|
INTEREST
INCOME
|
||||||||||||||||||||
|
Interest
and Fees on Loans
|
$ | 13,565 | $ | 13,668 | $ | 13,332 | $ | 53,266 | $ | 53,905 | ||||||||||
|
Interest
on Short-term Investments
|
28 | 12 | 42 | 76 | 106 | |||||||||||||||
|
Interest
and Dividends on Investment Securities
|
2,721 | 2,675 | 2,423 | 10,851 | 9,725 | |||||||||||||||
|
TOTAL
INTEREST INCOME
|
16,314 | 16,355 | 15,797 | 64,193 | 63,736 | |||||||||||||||
|
INTEREST
EXPENSE
|
||||||||||||||||||||
|
Interest
on Deposits
|
2,621 | 2,642 | 3,026 | 10,561 | 13,495 | |||||||||||||||
|
Interest
on Borrowings
|
1,063 | 1,236 | 1,497 | 4,961 | 5,728 | |||||||||||||||
|
TOTAL
INTEREST EXPENSE
|
3,684 | 3,878 | 4,523 | 15,522 | 19,223 | |||||||||||||||
|
NET
INTEREST INCOME
|
12,630 | 12,477 | 11,274 | 48,671 | 44,513 | |||||||||||||||
|
Provision
for Loan Losses
|
1,350 | 1,375 | 750 | 5,225 | 3,750 | |||||||||||||||
|
NET
INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
|
11,280 | 11,102 | 10,524 | 43,446 | 40,763 | |||||||||||||||
|
NON-INTEREST
INCOME
|
||||||||||||||||||||
|
Net
Gain on Sales of Loans
|
541 | 802 | 323 | 2,160 | 1,760 | |||||||||||||||
|
Net
Gain (Loss) on Securities
|
- | - | (389 | ) | - | (423 | ) | |||||||||||||
|
Other
Non-interest Income
|
3,599 | 3,631 | 3,803 | 14,783 | 14,522 | |||||||||||||||
|
TOTAL
NON-INTEREST INCOME
|
4,140 | 4,433 | 3,737 | 16,943 | 15,859 | |||||||||||||||
|
NON-INTEREST
EXPENSE
|
||||||||||||||||||||
|
Salaries
and Benefits
|
5,763 | 5,470 | 5,405 | 22,070 | 21,961 | |||||||||||||||
|
Other
Non-interest Expenses
|
4,989 | 4,971 | 4,753 | 19,291 | 18,430 | |||||||||||||||
|
TOTAL
NON-INTEREST EXPENSE
|
10,752 | 10,441 | 10,158 | 41,361 | 40,391 | |||||||||||||||
|
Income
before Income Taxes
|
4,668 | 5,094 | 4,103 | 19,028 | 16,231 | |||||||||||||||
|
Income
Tax Expense
|
1,516 | 1,500 | 782 | 5,623 | 4,013 | |||||||||||||||
|
NET
INCOME
|
$ | 3,152 | $ | 3,594 | $ | 3,321 | $ | 13,405 | $ | 12,218 | ||||||||||
|
EARNINGS
PER SHARE & DILUTED EARNINGS PER SHARE
|
$ | 0.28 | $ | 0.32 | $ | 0.30 | $ | 1.21 | $ | 1.10 | ||||||||||
|
WEIGHTED
AVERAGE SHARES OUTSTANDING
|
11,105,323 | 11,104,918 | 11,077,382 | 11,098,836 | 11,065,917 | |||||||||||||||
|
DILUTED
WEIGHTED AVERAGE SHARES OUTSTANDING
|
11,114,793 | 11,110,861 | 11,085,472 | 11,104,887 | 11,068,988 | |||||||||||||||
12 of
13
(unaudited,
dollars in thousands except per share data)
|
Three Months Ended
|
Year Ended
|
|||||||||||||||||||
|
December 31,
|
September 30,
|
December 31,
|
December 31,
|
December 31,
|
||||||||||||||||
|
2010
|
2010
|
2009
|
2010
|
2009
|
||||||||||||||||
|
EARNINGS
PERFORMANCE RATIOS
|
||||||||||||||||||||
|
Annualized
Return on Average Assets
|
0.90 | % | 1.06 | % | 1.04 | % | 1.01 | % | 0.99 | % | ||||||||||
|
Annualized
Return on Average Equity
|
10.14 | % | 11.79 | % | 11.69 | % | 11.18 | % | 11.12 | % | ||||||||||
|
Net
Interest Margin
|
3.90 | % | 4.00 | % | 3.82 | % | 3.98 | % | 3.95 | % | ||||||||||
|
Efficiency Ratio
(1)
|
63.35 | % | 61.03 | % | 66.71 | % | 62.27 | % | 66.02 | % | ||||||||||
|
Net Overhead Expense
to Average Earning Assets
(2)
|
2.02 | % | 1.90 | % | 2.15 | % | 1.97 | % | 2.14 | % | ||||||||||
|
ASSET
QUALITY RATIOS
|
||||||||||||||||||||
|
Annualized
Net Charge-offs to Average Loans
|
-0.12 | % | 0.21 | % | 0.23 | % | 0.32 | % | 0.25 | % | ||||||||||
|
Allowance
for Loan Losses to Period End Loans
|
1.45 | % | 1.28 | % | 1.25 | % | ||||||||||||||
|
Non-performing
Assets to Period End Assets
|
0.97 | % | 1.04 | % | 0.90 | % | ||||||||||||||
|
Non-performing
Loans to Period End Loans
|
1.22 | % | 1.28 | % | 1.00 | % | ||||||||||||||
|
Loans
30-89 Days Past Due to Period End Loans
|
0.65 | % | 0.62 | % | 0.64 | % | ||||||||||||||
|
SELECTED
BALANCE SHEET & OTHER FINANCIAL DATA
|
||||||||||||||||||||
|
Average
Assets
|
$ | 1,399,100 | $ | 1,353,459 | $ | 1,279,199 | $ | 1,330,540 | $ | 1,230,596 | ||||||||||
|
Average
Earning Assets
|
$ | 1,307,695 | $ | 1,261,633 | $ | 1,195,609 | $ | 1,241,901 | $ | 1,148,401 | ||||||||||
|
Average
Total Loans
|
$ | 922,672 | $ | 921,687 | $ | 890,740 | $ | 906,127 | $ | 891,322 | ||||||||||
|
Average
Demand Deposits
|
$ | 194,254 | $ | 180,147 | $ | 156,644 | $ | 173,091 | $ | 149,673 | ||||||||||
|
Average
Interest Bearing Liabilities
|
$ | 1,066,624 | $ | 1,036,742 | $ | 996,020 | $ | 1,023,941 | $ | 957,587 | ||||||||||
|
Average
Equity
|
$ | 124,329 | $ | 121,980 | $ | 113,640 | $ | 119,867 | $ | 109,887 | ||||||||||
|
Period End
Non-performing Assets (3)
|
$ | 13,325 | $ | 14,109 | $ | 11,156 | ||||||||||||||
|
Period End
Non-performing Loans (4)
|
$ | 11,230 | $ | 11,712 | $ | 8,793 | ||||||||||||||
|
Period End Loans
30-89 Days Past Due (5)
|
$ | 5,986 | $ | 5,707 | $ | 5,625 | ||||||||||||||
|
Tax
Equivalent Net Interest Income
|
$ | 12,833 | $ | 12,675 | $ | 11,490 | $ | 49,481 | $ | 45,323 | ||||||||||
|
Net
Charge-offs during Period
|
$ | (267 | ) | $ | 488 | $ | 522 | $ | 2,924 | $ | 2,256 | |||||||||
|
(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.
|
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