GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp, Inc.
Bradley M Rust, Senior Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
January 30, 2008 | GERMAN AMERICAN BANCORP, INC. REPORTS DOUBLE-DIGIT EARNINGS GROWTH AND RECORD QUARTERLY EARNINGS |
German American Bancorp, Inc. today reported record 4th quarter 2007 net income of $2,775,000, or $0.25 per share, an increase of $337,000, or 13.8%, from the $2,438,000, or $0.22 per share reported in the 4th quarter of 2006. This record level of quarterly earnings is a continuation of the strong performance fundamentals the Company has experienced for much of the past several years.
In comparison to the 4th quarter of last year, the Company recorded strong performance in virtually every category of operations as net interest income increased by $702,000, or 7.5%, driven by year-over-year loan growth of 9.0%, while revenues from deposit fees and service charges and from the sale of trust and investment products increased by $358,000, or 24.8%. Additionally, non-interest expenses declined by $462,000, or 4.8%, primarily resulting from a reduction in salaries and benefits expense of $318,000, or 5.7%, during the 4th quarter of 2007 relative to personnel expenses during the same quarter last year.
The record 4th quarter earnings were achieved even considering the recording during that quarter of a $680,000 net loss on securities within the Company’s portfolio of non-controlling investments in other banking organizations as the result of the sale of one of the investment holdings and the recognition of an other-than-temporary impairment expense in connection with the valuation of other holdings within the portfolio.
For the year-ended December 31, 2007, the Company reported net income of $9,405,000 as compared to $10,221,000 reported in 2006. The decline was principally attributable to an increase in the Company’s provision for loan loss during the year, the majority of which was related to the previously reported resolution of a single non-performing credit during the first quarter of the year.
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp, Inc.
Bradley M Rust, Senior Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
Commenting on the Company’s record earnings, strong loan and balance sheet growth, solid asset quality, and impressive cost control, Mark Schroeder, President & CEO of German American Bancorp, Inc., stated, “It is extremely gratifying that our efforts, over the course of the past several years, to prudently grow our balance sheet while maintaining our historic focus on asset quality and expense control has resulted in the achievement of the highest level of quarterly earnings in the history of our Company. Unlike much of the banking industry in the Midwest and throughout the United States, we are currently experiencing a strong and improving level of credit quality. Our credit quality improvement is evidenced by a continued reduction in the ratio of our level of non-performing loans to total loans at December 31, 2007, to 0.50%, which is the lowest ratio experienced in the past four years, and the return of our quarterly provision for loan losses to lower levels during the fourth quarter. We, nevertheless, diligently continue to closely monitor the quality of our loan portfolio in light of the apparent weakening of general economic conditions throughout the country. We remain committed to the continuation of this proven successful strategy of enhancing long-term shareholder value and believe the market will, utilizing a long-term perspective, recognize the inherent value of German American’s franchise.”
The Company also announced that its Board of Directors declared a regular quarterly cash dividend of $0.14 per share which will be payable on February 20, 2008 to shareholders of record as of February 10, 2008.
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German American Bancorp, Inc. is a financial services holding company based in Jasper, Indiana. The Company’s Common Stock is traded on NASDAQ’s Global Select Market System under the symbol GABC. The principal subsidiary of German American Bancorp, Inc. is its banking subsidiary, German American Bancorp which operates through six community banking affiliates with 28 retail banking offices in the ten contiguous Southern Indiana counties of Daviess, Dubois, Gibson, Knox, Lawrence, Martin, Monroe, Perry, Pike, and Spencer. German American Bancorp owns a trust, brokerage and financial planning subsidiary which operates from its banking offices and a full line property and casualty insurance agency with six insurance agency offices throughout its market area.
*****
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp, Inc.
Bradley M Rust, Senior Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
Forward-Looking Statements
German American’s statements in this press release regarding its outlook for its future financial performance, including its intention to maintain its strategy to prudently grow its balance sheet while maintaining asset quality and controlling expenses, 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 which could cause actual results and experience to differ from these expectations include 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; changes in general economic conditions, either nationally or locally, 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 German American undertakes no obligation to update any such forward-looking statement to reflect events or circumstances that occur after the date hereof.
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp, Inc.
Bradley M Rust, Senior Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
Consolidated Balance Sheets |
| |
GERMAN AMERICAN BANCORP, INC. |
(unaudited, dollars in thousands except per share data) |
| | | December 31, | |
| | | 2007 | | 2006 | |
ASSETS | | | | | |
| Cash and Due from Banks | | $ | 25,283 | | $ | 23,960 | |
| Short-term Investments | | | 2,631 | | | 5,735 | |
| Investment Securities | | | 152,764 | | | 185,557 | |
| | | | | | | | |
| Loans Held-for-Sale | | | 5,697 | | | 1,601 | |
| | | | | | | | |
| Loans, Net of Unearned Income | | | 867,721 | | | 796,259 | |
| Allowance for Loan Losses | | | (8,044 | ) | | (7,129 | ) |
| Net Loans | | | 859,677 | | | 789,130 | |
| | | | | | | | |
| Stock in FHLB and Other Restricted Stock | | | 10,621 | | | 10,621 | |
| Premises and Equipment | | | 22,783 | | | 23,245 | |
| Goodwill and Other Intangible Assets | | | 13,685 | | | 14,579 | |
| Other Assets | | | 38,569 | | | 38,996 | |
TOTAL ASSETS | | $ | 1,131,710 | | $ | 1,093,424 | |
| | | | | | | | |
LIABILITIES | | | | | | | |
| Non-interest-bearing Demand Deposits | | $ | 136,212 | | $ | 137,671 | |
| Interest-bearing Demand, Savings, and | | | | | | | |
| Money Market Accounts | | | 353,643 | | | 329,690 | |
| Time Deposits | | | 387,566 | | | 400,257 | |
| Total Deposits | | | 877,421 | | | 867,618 | |
| | | | | | | | |
| Borrowings | | | 144,170 | | | 119,889 | |
| Other Liabilities | | | 13,003 | | | 13,526 | |
TOTAL LIABILITIES | | | 1,034,594 | | | 1,001,033 | |
| | | | | | | | |
SHAREHOLDERS' EQUITY | | | | | | | |
| Common Stock and Surplus | | | 79,437 | | | 79,224 | |
| Retained Earnings | | | 16,681 | | | 13,450 | |
| Accumulated Other Comprehensive Income (Loss) | | | 998 | | | (283 | ) |
TOTAL SHAREHOLDERS' EQUITY | | | 97,116 | | | 92,391 | |
| | | | | | | | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | | $ | 1,131,710 | | $ | 1,093,424 | |
| | | | | | | | |
END OF PERIOD SHARES OUTSTANDING | | | 11,029,484 | | | 11,008,562 | |
| | | | | | | | |
BOOK VALUE PER SHARE | | $ | 8.81 | | $ | 8.39 | |
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp, Inc.
Bradley M Rust, Senior Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
GERMAN AMERICAN BANCORP, INC. |
(unaudited, dollars in thousands except per share data) |
| | | | | | | | | |
Consolidated Statements of Income |
| | | | | | | | | |
| | | Three Months Ended | | Year Ended | |
| | | December 31, | | December 31, | |
| | | 2007 | | 2006 | | 2007 | | 2006 | |
| | | | | | | | | | |
INTEREST INCOME | | | | | | | | | |
| Interest and Fees on Loans | | $ | 16,354 | | $ | 14,496 | | $ | 63,852 | | $ | 53,490 | |
| Interest on Short-term Investments | | | 129 | | | 178 | | | 478 | | | 545 | |
| Interest and Dividends on Investment Securities | | | 1,853 | | | 2,421 | | | 7,931 | | | 9,559 | |
TOTAL INTEREST INCOME | | | 18,336 | | | 17,095 | | | 72,261 | | | 63,594 | |
| | | | | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | | |
| Interest on Deposits | | | 6,708 | | | 6,193 | | | 27,289 | | | 21,329 | |
| Interest on Borrowings | | | 1,613 | | | 1,589 | | | 6,357 | | | 6,069 | |
TOTAL INTEREST EXPENSE | | | 8,321 | | | 7,782 | | | 33,646 | | | 27,398 | |
| | | | | | | | | | | | | | |
NET INTEREST INCOME | | | 10,015 | | | 9,313 | | | 38,615 | | | 36,196 | |
| Provision for Loan Losses | | | 347 | | | 291 | | | 3,591 | | | 925 | |
NET INTEREST INCOME AFTER | | | | | | | | | | | | | |
PROVISION FOR LOAN LOSSES | | | 9,668 | | | 9,022 | | | 35,024 | | | 35,271 | |
| | | | | | | | | | | | | | |
NON-INTEREST INCOME | | | | | | | | | | | | | |
| Net Gain on Sales of Loans and Related Assets | | | 277 | | | 165 | | | 822 | | | 917 | |
| Net Gain (Loss) on Securities | | | (680 | ) | | - | | | (680 | ) | | 951 | |
| Other Non-interest Income | | | 3,922 | | | 3,672 | | | 15,562 | | | 14,125 | |
TOTAL NON-INTEREST INCOME | | | 3,519 | | | 3,837 | | | 15,704 | | | 15,993 | |
| | | | | | | | | | | | | | |
NON-INTEREST EXPENSE | | | | | | | | | | | | | |
| Salaries and Benefits | | | 5,219 | | | 5,537 | | | 21,671 | | | 21,491 | |
| Other Non-interest Expenses | | | 3,934 | | | 4,078 | | | 15,550 | | | 15,568 | |
TOTAL NON-INTEREST EXPENSE | | | 9,153 | | | 9,615 | | | 37,221 | | | 37,059 | |
| | | | | | | | | | | | | | |
| Income before Income Taxes | | | 4,034 | | | 3,244 | | | 13,507 | | | 14,205 | |
| Income Tax Expense | | | 1,259 | | | 806 | | | 4,102 | | | 3,984 | |
| | | | | | | | | | | | | | |
NET INCOME | | $ | 2,775 | | $ | 2,438 | | $ | 9,405 | | $ | 10,221 | |
| | | | | | | | | | | | | | |
EARNINGS PER SHARE & DILUTED EARNINGS PER SHARE | | $ | 0.25 | | $ | 0.22 | | $ | 0.85 | | $ | 0.93 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
WEIGHTED AVERAGE SHARES OUTSTANDING | | | 11,012,428 | | | 10,997,099 | | | 11,009,536 | | | 10,994,739 | |
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING | | | 11,031,920 | | | 11,003,640 | | | 11,025,226 | | | 11,005,667 | |
GERMAN AMERICAN BANCORP, INC.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, President/CEO of German American Bancorp, Inc.
Bradley M Rust, Senior Vice President/CFO of German American Bancorp, Inc.
(812) 482-1314
GERMAN AMERICAN BANCORP, INC. |
(unaudited, dollars in thousands except per share data) |
| | | Three Months Ended | | Year Ended | |
| | | December 31, | | December 31, | |
| | | 2007 | | 2006 | | 2007 | | 2006 | |
EARNINGS PERFORMANCE RATIOS | | | | | | | | | |
| Annualized Return on Average Assets | | | 0.99 | % | | 0.91 | % | | 0.84 | % | | 0.99 | % |
| Annualized Return on Average Equity | | | 11.58 | % | | 10.88 | % | | 10.04 | % | | 11.56 | % |
| Net Interest Margin | | | 3.90 | % | | 3.88 | % | | 3.84 | % | | 3.96 | % |
Efficiency Ratio (1) | | | 66.99 | % | | 71.96 | % | | 67.79 | % | | 69.60 | % |
Net Overhead Expense to Average Earning Assets (2) | | | 2.18 | % | | 2.36 | % | | 2.10 | % | | 2.24 | % |
| | | | | | | | | | | | | | |
ASSET QUALITY RATIOS | | | | | | | | | | | | | |
| Annualized Net Charge-offs to Average Loans | | | 0.17 | % | | 1.21 | % | | 0.32 | % | | 0.50 | % |
| Allowance for Loan Losses to Period End Loans | | | | | | | | | 0.93 | % | | 0.90 | % |
| Non-performing Assets to Period End Assets | | | | | | | | | 0.52 | % | | 0.96 | % |
| Non-performing Loans to Period End Loans | | | | | | | | | 0.50 | % | | 1.21 | % |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA | | | | | | | | | | | | | |
| Average Assets | | $ | 1,125,195 | | $ | 1,066,214 | | $ | 1,114,140 | | $ | 1,029,838 | |
| Average Earning Assets | | $ | 1,036,025 | | $ | 977,310 | | $ | 1,023,496 | | $ | 941,549 | |
| Average Total Loans | | $ | 865,329 | | $ | 751,432 | | $ | 840,849 | | $ | 715,260 | |
| Average Demand Deposits | | $ | 135,984 | | $ | 132,237 | | $ | 133,824 | | $ | 129,759 | |
| Average Interest Bearing Liabilities | | $ | 879,195 | | $ | 830,346 | | $ | 872,996 | | $ | 798,240 | |
| Average Equity | | $ | 95,854 | | $ | 89,616 | | $ | 93,677 | | $ | 88,451 | |
| | | | | | | | | | | | | | |
Period End Non-performing Assets (3) | | | | | | | | $ | 5,881 | | $ | 10,497 | |
Period End Non-performing Loans (4) | | | | | | | | $ | 4,364 | | $ | 9,652 | |
| | | | | | | | | | | | | | |
| Tax Equivalent Net Interest Income | | $ | 10,144 | | $ | 9,524 | | $ | 39,205 | | $ | 37,252 | |
| Net Charge-offs during Period | | $ | 358 | | $ | 2,273 | | $ | 2,676 | | $ | 3,545 | |
(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. |
