GERMAN AMERICAN BANCORP
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp
Bradley M. Rust, Senior Vice President/CFO of German American Bancorp
(812) 482-1314
Page 1 of 3
JASPER, INDIANA | NOVEMBER 1, 2005 | GERMAN AMERICAN BANCORP REPORTS INCREASED 3RD QUARTER AND YEAR-TO-DATE EARNINGS |
German American Bancorp (NASDAQ: GABC) announced today that its third quarter and year-to-date earnings per share increased by approximately 5% and 10%, respectively, over last year’s same period results.
The Company’s net income for the third quarter was $2,471,000, or $0.23 per share, increasing by $95,000 from reported net income of $2,376,000, or $0.22 per share, in the third quarter of 2004. 2005 year-to-date net income totaled $7,290,000, or $0.67 per share, while the nine months’ earnings for 2004 were $6,660,000, or $0.61 per share.
The earnings increases in 2005, both for the quarter and on a year-to-date basis, were driven by improvements in virtually every category of the Company’s income statement. The Company’s results reflected improvement in both net interest income and non-interest income coupled with lower levels of operating expenses. The earnings enhancements from these three major areas of Company operations was slightly reduced by a somewhat higher level of provision for loan losses.
Commenting on the Company’s positive operating trends, Mark A. Schroeder, President & CEO of German American Bancorp stated, “Throughout the past year and the past several years, we have maintained our focus on our Company’s core operating fundamentals. While the general level of market interest rates and slope of the yield curve has presented a challenging environment in which to enhance profitability, we are very pleased that our steadfast commitment to remaining focused on growing our revenue base while controlling our operating overhead is paying dividends in terms of earnings growth.”
The Company had previously announced the completion, effective October 1, 2005, of its acquisition of PCB Holding Company of Tell City, Indiana and its pending acquisition of Stone City Bancshares, Inc. of Bedford, Indiana. The completion of the Stone City merger, which is expected to be finalized during the first quarter of 2006, is subject to
GERMAN AMERICAN BANCORP
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp
Bradley M. Rust, Senior Vice President/CFO of German American Bancorp
(812) 482-1314
Page 2 of 3
regulatory approvals and other customary closing conditions. Under the terms of this transaction, Stone City’s subsidiary bank, Stone City Bank, will continue operations as an independent, state chartered banking institution.
The Company also announced that its Board had declared a regular quarterly cash dividend of $0.14 per share which will be payable on November 20, 2005 to shareholders of record as of November 10, 2005.
German American Bancorp is a financial services holding company based in Jasper, Indiana. The Company’s Common Stock is traded on NASDAQ’s National Market System under the symbol GABC. The Company operates five affiliated community banks with 28 retail banking offices in the eight contiguous Southwestern Indiana counties of Daviess, Dubois, Gibson, Knox, Martin, Perry, Pike, and Spencer. The Company also operates German American Financial Advisors & Trust Company, a trust, brokerage and financial planning subsidiary operating from the banking offices of the bank subsidiaries and German American Insurance, Inc., a full-line property and casualty insurance subsidiary with five independent insurance offices throughout its market area. The Company’s lines of business include retail and commercial banking, mortgage banking, comprehensive wealth management, full service brokerage and trust administration, title insurance, and a full range of personal and corporate insurance products.
Forward-Looking Statements
The Company’s statements in this press release regarding its financial performance may be deemed to include “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. Changes in the Company’s net interest income may vary materially from those that are presently expected, if interest rates should decline or not increase. Other factors that could cause net interest income and earnings to vary from those that are expected, or those that have historically been achieved in recent periods, include the effects of changes in competitive conditions; the introduction, withdrawal, success and timing of asset/liability management strategies or of business initiatives and business strategies; changes in customer borrowing, repayment, investment and deposit practices; changes in fiscal, monetary and tax policies; changes in financial and capital markets; changes in general economic conditions, either nationally or regionally, resulting in, among other things, credit quality deterioration; capital management activities; actions of the Federal Reserve Board; changes in accounting principles and interpretations; and legislative and regulatory actions and reforms. These forward-looking statements speak only as of the date of this press release and the Company undertakes no obligation to update any such forward-looking statement to reflect events or circumstances that occur after the date hereof.
GERMAN AMERICAN BANCORP
(unaudited, dollars in thousands except per share data)
Consolidated Balance Sheets
September 30, | ||||||||
---|---|---|---|---|---|---|---|---|
2005 | 2004 | |||||||
ASSETS | ||||||||
Cash and Due from Banks | $ | 22,761 | $ | 25,310 | ||||
Short-term Investments | 8,982 | 8,054 | ||||||
Investment Securities | 189,464 | 202,159 | ||||||
Loans Held-for-Sale | 2,779 | 1,220 | ||||||
Loans, Net of Unearned Income | 625,618 | 627,289 | ||||||
Allowance for Loan Losses | (9,370 | ) | (8,897 | ) | ||||
Net Loans | 616,248 | 618,392 | ||||||
Stock in FHLB and Other Restricted Stock | 13,829 | 13,400 | ||||||
Premises and Equipment | 19,867 | 20,729 | ||||||
Other Assets | 43,945 | 38,323 | ||||||
TOTAL ASSETS | $ | 917,875 | $ | 927,587 | ||||
LIABILITIES | ||||||||
Non-interest-bearing Demand Deposits | $ | 119,772 | $ | 121,963 | ||||
Interest-bearing Demand, Savings, and | ||||||||
Money Market Accounts | 283,490 | 282,895 | ||||||
Time Deposits | 308,386 | 319,924 | ||||||
Total Deposits | 711,648 | 724,782 | ||||||
Borrowings | 111,283 | 107,137 | ||||||
Other Liabilities | 10,532 | 11,962 | ||||||
TOTAL LIABILITIES | 833,463 | 843,881 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Common Stock and Surplus | 76,438 | 78,029 | ||||||
Retained Earnings | 8,512 | 6,487 | ||||||
Accumulated Other Comprehensive Loss | (538 | ) | (810 | ) | ||||
TOTAL SHAREHOLDERS' EQUITY | 84,412 | 83,706 | ||||||
TOTAL LIABILITIES AND | ||||||||
SHAREHOLDERS' EQUITY | $ | 917,875 | $ | 927,587 | ||||
BOOK VALUE PER SHARE | $ | 7.80 | $ | 7.68 | ||||
END OF PERIOD SHARES OUTSTANDING | 10,827,205 | 10,898,241 |
GERMAN AMERICAN BANCORP
(unaudited, dollars in thousands except per share data)
Consolidated Statements of Income
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
2005 | 2004 | 2005 | 2004 | |||||||||||
INTEREST INCOME | ||||||||||||||
Interest and Fees on Loans | $ | 10,514 | $ | 9,833 | $ | 30,502 | $ | 29,280 | ||||||
Interest on Short-term Investments | 55 | 21 | 194 | 69 | ||||||||||
Interest and Dividends on Investment Securities | 2,007 | 2,103 | 6,056 | 6,272 | ||||||||||
TOTAL INTEREST INCOME | 12,576 | 11,957 | 36,752 | 35,621 | ||||||||||
INTEREST EXPENSE | ||||||||||||||
Interest on Deposits | 3,427 | 2,818 | 9,398 | 8,937 | ||||||||||
Interest on Borrowings | 1,168 | 1,239 | 3,399 | 3,571 | ||||||||||
TOTAL INTEREST EXPENSE | 4,595 | 4,057 | 12,797 | 12,508 | ||||||||||
Net Interest Income | 7,981 | 7,900 | 23,955 | 23,113 | ||||||||||
Provision for Loan Losses | 552 | 288 | 1,725 | 1,528 | ||||||||||
Net Interest Income after | ||||||||||||||
Provision for Loan Losses | 7,429 | 7,612 | 22,230 | 21,585 | ||||||||||
NON-INTEREST INCOME | ||||||||||||||
Other Operating Income | 3,254 | 2,843 | 9,987 | 9,211 | ||||||||||
Net Gain on Sales of Loans and Related Assets | 234 | 278 | 699 | 823 | ||||||||||
Net Gain on Securities | — | — | — | 5 | ||||||||||
TOTAL NON-INTEREST INCOME | 3,488 | 3,121 | 10,686 | 10,039 | ||||||||||
NON-INTEREST EXPENSE | ||||||||||||||
Salaries and Benefits | 4,465 | 4,534 | 13,592 | 13,644 | ||||||||||
Other Operating Expenses | 3,060 | 3,291 | 9,579 | 9,895 | ||||||||||
TOTAL NON-INTEREST EXPENSE | 7,525 | 7,825 | 23,171 | 23,539 | ||||||||||
Income before Income Taxes | 3,392 | 2,908 | 9,745 | 8,085 | ||||||||||
Income Tax Expense | 921 | 532 | 2,455 | 1,425 | ||||||||||
NET INCOME | $ | 2,471 | $ | 2,376 | $ | 7,290 | $ | 6,660 | ||||||
EARNINGS PER SHARE & DILUTED EARNINGS PER SHARE | $ | 0.23 | $ | 0.22 | $ | 0.67 | $ | 0.61 | ||||||
WEIGHTED AVERAGE SHARES OUTSTANDING | 10,826,729 | 10,898,241 | 10,851,022 | 10,920,123 | ||||||||||
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING | 10,831,620 | 10,929,870 | 10,856,984 | 10,954,121 |