Exhibit 99.1
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
1 of 11
| APRIL 28, 2014 | GERMAN AMERICAN BANCORP, INC. (GABC) |
| | REPORTS STRONG FIRST QUARTER PERFORMANCE |
Jasper, Indiana - April 28, 2014 -- German American Bancorp, Inc. (NASDAQ: GABC) today reported another period of strong financial performance during the first quarter of 2014. During the quarter ended March 31, 2014, German American’s reported net income of $6.3 million, which was an increase of approximately 9%, on a reported net income basis, above the net income of $5.8 million in the first quarter of 2013. Net income per share in the current quarter increased by approximately 4% to $0.48 versus $0.46 for the comparable period of 2013.
As compared to the first quarter results in the prior year, this year’s earnings were positively affected by a $2.0 million, or approximately 12%, increase in net interest income. This net interest income improvement was driven primarily by growth within the Company’s loan portfolio, as end of period total loans, exclusive of loans held for sale, increased by $171 million, or approximately 14%, in 2014 relative to loans outstanding as of March 31, 2013.
Further enhancing the Company’s 2014 first quarter earnings comparison was a $1.0 million, or 23% increase, in non-interest income (exclusive of net gains on the sales of loans and securities). This increase was driven by a $772,000 increase in insurance revenue, a $193,000 increase in investment services revenue, and a $106,000 increase in deposit service charges in 2014. German American’s quarterly year-over-year performance was also reflective of a $385,000 decrease in net gains from securities sales, as well as a $278,000 decrease in net gains from the sale of residential mortgage loans.
The Company’s total non-interest expenses increased by approximately $1.6 million during first quarter of 2014 compared to the same quarter of last year. This increase was affected by the inclusion of the United Commerce Bancorp operation which was acquired by the Company effective October 1, 2013, a new financial center in Columbus, Indiana, and the roll-out of the Company’s new digital banking systems in the first quarter of 2014 operating expenses.
“We’re pleased with our strong start in terms of financial performance during 2014, and remain very optimistic regarding the level of loan demand and economic strength we’re seeing throughout our footprint,” stated Mark A. Schroeder, German American’s Chairman & CEO. “While the continuation of the prolonged period of depressed interest rates creates a difficult operating environment within the banking industry, it is very encouraging to have been able to post this level of financial performance to start the new year.”
The Company also announced that its Board of Directors declared its regular quarterly cash dividend of $0.16 per share which will be payable on May 20, 2014 to shareholders of record as of May 10, 2014.
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
2 of 11
Balance Sheet Highlights
Total assets for the Company totaled $2.146 billion at March 31, 2014, a decrease of $17.4 million, or 1%, compared with December 31, 2013 and an increase of $167.4 million, or 9%, compared with March 31, 2013.
March 31, 2014 loans outstanding decreased by $18.0 million or approximately 5% on an annualized basis, compared with year-end 2013, and increased $170.6 million, or 14%, compared to March 31, 2013 total loans outstanding. The reduction in loans during the first quarter of 2014 compared with year-end 2013 was largely related to a seasonal decline in agricultural loans.
| End of Period Loan Balances | | 03/31/14 | | | 12/31/13 | | | 03/31/13 | |
| (dollars in thousands) | | | | | | | | | |
| | | | | | | | | | |
| Commercial & Industrial Loans | | $ | 344,045 | | | $ | 350,955 | | | $ | 332,142 | |
| Commercial Real Estate Loans | | | 589,193 | | | | 582,066 | | | | 498,582 | |
| Agricultural Loans | | | 174,651 | | | | 192,880 | | | | 164,903 | |
| Consumer Loans | | | 128,024 | | | | 130,628 | | | | 114,715 | |
| Residential Mortgage Loans | | | 131,271 | | | | 128,683 | | | | 86,276 | |
| | | $ | 1,367,184 | | | $ | 1,385,212 | | | $ | 1,196,618 | |
Non-performing assets totaled $12.6 million at March 31, 2014 compared to $9.4 million of non-performing assets at year-end 2013 and $11.7 million at March 31, 2013. Non-performing assets represented 0.59% of total assets at March 31, 2014 compared to 0.44% of total assets at December 31, 2013, and compared to 0.59% at March 31, 2013. Non-performing loans totaled $11.8 million at March 31, 2014 compared to $8.4 million at year-end 2013 and compared to $9.9 million of non-performing loans at March 31, 2013. Non-performing loans represented 0.86% of total loans at March 31, 2014 compared with 0.61% of total outstanding loans at year-end 2013 and 0.83% of total loans outstanding at March 31, 2013. The increase in non-performing loans during the first quarter of 2014 was primarily attributable to a single commercial relationship.
| Non-performing Assets | | | | | | | | | |
| (dollars in thousands) | | | | | | | | | |
| | | 03/31/14 | | | 12/31/13 | | | 03/31/13 | |
| Non-Accrual Loans | | $ | 11,776 | | | $ | 8,378 | | | $ | 9,944 | |
| Past Due Loans (90 days or more) | | | 16 | | | | 8 | | | | - | |
| Total Non-Performing Loans | | | 11,792 | | | | 8,386 | | | | 9,944 | |
| Other Real Estate | | | 770 | | | | 1,029 | | | | 1,738 | |
| Total Non-Performing Assets | | $ | 12,562 | | | $ | 9,415 | | | $ | 11,682 | |
| | | | | | | | | | | | | |
| Restructured Loans | | $ | 2,246 | | | $ | 2,418 | | | $ | 339 | |
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
3 of 11
The Company’s allowance for loan losses totaled $15.5 million at March 31, 2014 representing an increase of $900,000, or 25% on an annualized basis, from year-end 2013 and a decline of $250,000, or 2%, from March 31, 2013. The allowance for loan losses represented 1.13% of period-end loans at March 31, 2014 compared with 1.05% of period-end loans at year-end 2013 and 1.32% of period-end loans at March 31, 2013. Under acquisition accounting treatment, loans acquired are recorded at fair value which includes a credit risk component, and therefore the allowance on loans acquired is not carried over from the seller. The Company held a discount on acquired loans of $5.4 million as of March 31, 2014, $5.9 million at year-end 2013 and $3.1 million at March 31, 2013.
Total deposits decreased $44.4 million or 10% on an annualized basis, as of March 31, 2014 compared with December 31, 2013 total deposits and increased by $107.9 million or 7% compared with March 31, 2013.
| End of Period Deposit Balances | | 03/31/14 | | | 12/31/13 | | | 03/31/13 | |
| (dollars in thousands) | | | | | | | | | |
| | | | | | | | | | |
| Non-interest-bearing Demand Deposits | | $ | 409,630 | | | $ | 400,024 | | | $ | 344,027 | |
| IB Demand, Savings, and MMDA Accounts | | | 1,015,711 | | | | 1,063,098 | | | | 983,170 | |
| Time Deposits < $100,000 | | | 216,227 | | | | 224,361 | | | | 223,913 | |
| Time Deposits > $100,000 | | | 126,207 | | | | 124,673 | | | | 108,799 | |
| | | $ | 1,767,775 | | | $ | 1,812,156 | | | $ | 1,659,909 | |
Results of Operations Highlights – Quarter ended March 31, 2014
Net income for the quarter ended March 31, 2014 totaled $6,305,000 or $0.48 per share, an increase of $496,000, or 4% on a per share basis, from the first quarter of 2013 net income of $5,809,000 or $0.46 per share and a decline of $284,000, or 4% on a per share basis, from the fourth quarter of 2013 net income of $6,589,000 or $0.50 per share.
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
4 of 11
| Summary Average Balance Sheet | | | | | | | | | | | | | |
(Tax-equivalent basis / dollars in thousands) | | | | | | | | | | | | | |
| | | Quarter Ended March 31, 2014 | | | Quarter Ended December 31, 2013 | | | Quarter Ended March 31, 2013 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Principal Balance | | | Income/ Expense | | | Yield/ Rate | | | Principal Balance | | | Income/ Expense | | | Yield/ Rate | | | Principal Balance | | | Income/ Expense | | | Yield/ Rate | |
| Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Federal Funds Sold and Other Short-term Investments | | $ | 12,149 | | | $ | 3 | | | | 0.10 | % | | $ | 18,544 | | | $ | 5 | | | | 0.09 | % | | $ | 16,831 | | | $ | 10 | | | | 0.24 | % |
| Securities | | | 622,127 | | | | 4,260 | | | | 2.74 | % | | | 629,912 | | | | 4,112 | | | | 2.61 | % | | | 634,423 | | | | 3,816 | | | | 2.41 | % |
| Loans and Leases | | | 1,371,361 | | | | 16,018 | | | | 4.73 | % | | | 1,372,391 | | | | 16,471 | | | | 4.77 | % | | | 1,211,852 | | | | 14,936 | | | | 4.99 | % |
| Total Interest Earning Assets | | $ | 2,005,637 | | | $ | 20,281 | | | | 4.08 | % | | $ | 2,020,847 | | | $ | 20,588 | | | | 4.05 | % | | $ | 1,863,106 | | | $ | 18,762 | | | | 4.07 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand Deposit Accounts | | $ | 405,386 | | | | | | | | | | | $ | 396,215 | | | | | | | | | | | $ | 336,472 | | | | | | | | | |
IB Demand, Savings, and MMDA Accounts | | $ | 1,041,009 | | | $ | 321 | | | | 0.13 | % | | $ | 1,054,668 | | | $ | 407 | | | | 0.15 | % | | $ | 965,953 | | | $ | 382 | | | | 0.16 | % |
| Time Deposits | | | 340,160 | | | | 715 | | | | 0.85 | % | | | 355,626 | | | | 757 | | | | 0.84 | % | | | 334,679 | | | | 852 | | | | 1.03 | % |
| FHLB Advances and Other Borrowings | | | 130,727 | | | | 449 | | | | 1.39 | % | | | 125,764 | | | | 480 | | | | 1.51 | % | | | 140,363 | | | | 911 | | | | 2.63 | % |
| Total Interest-Bearing Liabilities | | $ | 1,511,896 | | | $ | 1,485 | | | | 0.40 | % | | $ | 1,536,058 | | | $ | 1,644 | | | | 0.42 | % | | $ | 1,440,995 | | | $ | 2,145 | | | | 0.60 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cost of Funds | | | | | | | | | | | 0.30 | % | | | | | | | | | | | 0.32 | % | | | | | | | | | | | 0.47 | % |
| Net Interest Income | | | | | | $ | 18,796 | | | | | | | | | | | $ | 18,944 | | | | | | | | | | | $ | 16,617 | | | | | |
| Net Interest Margin | | | | | | | | | | | 3.78 | % | | | | | | | | | | | 3.73 | % | | | | | | | | | | | 3.60 | % |
During the quarter ended March 31, 2014, net interest income totaled $18,196,000 representing a decline of $192,000, or 1%, from the quarter ended December 31, 2013 net interest income of $18,388,000 and an increase of $1,971,000, or 12%, compared with the quarter ended March 31, 2013 net interest income of $16,225,000. The tax equivalent net interest margin for the quarter ended March 31, 2014 was 3.78% compared to 3.73% in the fourth quarter of 2013 and 3.60% in the first quarter of 2013. The modest decline in net interest income in the first quarter of 2014 compared with the fourth quarter of 2013 was primarily attributable to a modestly lower level of average loans outstanding due to a seasonal decline in the Company’s agricultural loan portfolio and to a decreased amount of accretion of loan discounts on acquired loans. The increase in net interest income during the first quarter of 2014 compared with the first quarter of 2013 was largely attributable to growth of the loan portfolio and to a significantly reduced cost of funds.
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
5 of 11
The improvement in the net interest margin in the first quarter of 2014 compared with the fourth quarter of 2013 was largely attributable to increased yields on the Company’s securities portfolio and a continued decline in the Company’s cost of funds. The improvement of the net interest margin in the first quarter of 2014 compared with the first quarter of 2013 was primarily attributable to an increased level of average loans outstanding, to the improvement in the yield on the Company’s securities portfolio and to the continued decline in the Company’s cost of funds.
Accretion of loan discounts on acquired loans contributed approximately 5 basis points on an annualized basis to the net interest margin in the first quarter of 2014, 7 basis points in fourth quarter of 2013 and 8 basis points in the first quarter of 2013.
During the quarter ended March 31, 2014, the provision for loan loss totaled $350,000 representing a decline of $250,000, or 42%, from the provision of $600,000 during the fourth quarter of 2013 and was flat to the $350,000 provision during the first quarter of 2013. During the first quarter of 2014, the provision for loan loss represented approximately 10 basis points of average loans on an annualized basis. During the first quarter of 2014, the Company had a net recovery of $550,000 representing approximately 16 basis points of average loans on an annualized basis.
During the quarter ended March 31, 2014, non-interest income totaled $6,281,000, an increase of $130,000 or 2%, compared with the quarter ended December 31, 2013, and an increase of $371,000, or 6%, compared with the first quarter of 2013.
| | | | | | | | | | |
| | | Quarter Ended | | | Quarter Ended | | | Quarter Ended | |
| Non-interest Income | | 03/31/14 | | | 12/31/13 | | | 03/31/13 | |
| (dollars in thousands) | | | | | | | | | |
| | | | | | | | | | |
| Trust and Investment Product Fees | | $ | 922 | | | $ | 925 | | | $ | 817 | |
| Service Charges on Deposit Accounts | | | 1,061 | | | | 1,110 | | | | 955 | |
| Insurance Revenues | | | 2,556 | | | | 1,559 | | | | 1,784 | |
| Company Owned Life Insurance | | | 201 | | | | 249 | | | | 266 | |
| Interchange Fee Income | | | 447 | | | | 462 | | | | 430 | |
| Other Operating Income | | | 390 | | | | 456 | | | | 291 | |
| Subtotal | | | 5,577 | | | | 4,761 | | | | 4,543 | |
| Net Gains on Loans | | | 476 | | | | 469 | | | | 754 | |
| Net Gains on Securities | | | 228 | | | | 921 | | | | 613 | |
| Total Non-interest Income | | $ | 6,281 | | | $ | 6,151 | | | $ | 5,910 | |
Trust and investment product fees were flat in the first quarter of 2014 compared with the fourth quarter of 2013 and increased $105,000, or 13%, compared with first quarter of 2013. The increase in the first quarter of 2014 compared with same period of 2013 was due to an increased level of brokerage revenues.
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
6 of 11
Insurance revenues increased $997,000, or 64%, during the quarter ended March 31, 2014, compared with the fourth quarter of 2013 and increased $772,000, or 43%, compared with the first quarter of 2013. The increase during the first quarter of 2014 compared with both the fourth quarter of 2013 and the first quarter of 2013 was due to increased contingency revenue. Contingency revenue during the first quarter of 2014 totaled $1,049,000 compared with $246,000 during the first quarter of 2013. The fluctuation in contingency revenue during 2014 and 2013 is a normal course of business type of variance and is reflective of claims and loss experience with insurance carriers that the Company represents through its property and casualty insurance agency.
Net gains on sales of loans totaled $476,000 during the quarter ended March 31, 2014, an increase of $7,000, or 1%, compared to the fourth quarter of 2013 and a decline of $278,000, or 37%, compared with the first quarter of 2013. Loan sales totaled $21.9 million during the first quarter of 2014, compared with $26.6 million during the fourth quarter of 2013 and $42.5 million during the first quarter of 2013.
During the first quarter of 2014, the Company realized a net gain on the sale of securities of $228,000 compared with a net gain of $921,000 during the fourth quarter of 2013 and $613,000 during the first quarter of 2013. The gain realized during the fourth quarter of 2013 included a $343,000 gain the Company realized related to the acquisition accounting treatment of the existing equity ownership position the Company held in United Commerce Bancorp at the time of acquisition.
During the quarter ended March 31, 2014, non-interest expense totaled $15,090,000, an increase of $492,000, or 3%, compared with the quarter ended December 31, 2013, and an increase of $1,628,000, or 12%, compared with the first quarter of 2013.
| | | Quarter Ended | | | Quarter Ended | | | Quarter Ended | |
| Non-interest Expense | | 03/31/14 | | | 12/31/13 | | | 03/31/13 | |
| (dollars in thousands) | | | | | | | | | |
| | | | | | | | | | |
| Salaries and Employee Benefits | | $ | 8,424 | | | $ | 8,556 | | | $ | 7,784 | |
| Occupancy, Furniture and Equipment Expense | | | 1,825 | | | | 1,705 | | | | 1,580 | |
| FDIC Premiums | | | 275 | | | | 274 | | | | 255 | |
| Data Processing Fees | | | 1,010 | | | | 1,079 | | | | 665 | |
| Professional Fees | | | 692 | | | | 421 | | | | 661 | |
| Advertising and Promotion | | | 478 | | | | 410 | | | | 490 | |
| Intangible Amortization | | | 348 | | | | 372 | | | | 367 | |
| Other Operating Expenses | | | 2,038 | | | | 1,781 | | | | 1,660 | |
| Total Non-interest Expense | | $ | 15,090 | | | $ | 14,598 | | | $ | 13,462 | |
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
7 of 11
Salaries and benefits decreased $132,000, or 2%, during the quarter ended March 31, 2014 compared with the fourth quarter of 2013 and increased $640,000, or 8%, compared with the first quarter of 2013. The decline in salaries and benefits during the first quarter of 2014 compared with the fourth quarter of 2013 was largely related to a decline in the costs related the Company’s health insurance plan and a decline in merger-related salary and benefit costs related to the acquisition of United Commerce which occurred during the fourth quarter of 2013. The increase in salaries and benefits during the first quarter of 2014 compared with the first quarter of 2013 was largely attributable to an increased level of full-time equivalent employees.
Occupancy, furniture and equipment expense increased $120,000, or 7%, during the quarter ended March 31, 2014 compared with the fourth quarter of 2013 and increased $245,000, or 16%, compared with the first quarter of 2013. The increase compared with the fourth quarter was largely attributable to higher costs of utilities, snow removal and other repairs and maintenance items. The increase compared with the first quarter of 2013 was largely attributable to additional office facilities including the acquisition of United Commerce Bancorp and the opening of a full-service banking location in Columbus, Indiana.
Data processing fees declined $69,000, or 6%, during the first quarter of 2014 compared with the fourth quarter of 2013 and increased $345,000, or 52%, compared with the first quarter of 2013. The data processing fees during the first quarter of 2014 were elevated related to costs associated with the implementation of new commercial and retail digital banking platforms late in fourth quarter of 2013 and the first quarter of 2014. Data processing costs were elevated in the fourth quarter of 2013 related to the acquisition of United Commerce Bancorp.
Professional fees increased $271,000, or 64%, during the quarter ended March 31, 2014 compared with the fourth quarter of 2013 and increased $31,000 compared with the first quarter of 2013. The increase during the first quarter of 2014 compared with the fourth quarter of 2013 was largely related to professional fees related to the digital banking platform upgrades and audit related costs associated with the acquisition of United Commerce Bancorp. In addition, professional fees were generally lower in the fourth quarter of 2013 than a typical quarter for the Company.
Other operating expenses increased $257,000, or 14%, during the quarter ended March 31, 2014 compared with the fourth quarter of 2013 and increased $378,000, or 23%, compared with the first quarter of 2013. The increase during the first quarter of 2014 as compared with both comparative periods was largely related to collection costs associated with residential loans sold on the secondary market and losses sustained from fraudulent debit card activity which resulted from a phone scam that targeted the Company’s customers during the first quarter of 2014. The increase as compared to the first quarter of 2013 was also attributable to the acquisition of United Commerce Bancorp and the opening of the Columbus, Indiana full service banking location.
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
8 of 11
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 37 retail and commercial banking offices in 13 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.).
Cautionary Note Regarding Forward-Looking Statements
The Company’s statements in this press release regarding the levels of loan demand and economic strength that its management is seeing in its geographical banking footprint could be deemed to be “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 actual experience to differ from the expectations implied in this press release include the unknown future direction of interest rates and the timing and magnitude of any 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; deterioration in general economic conditions, either nationally or locally, resulting in, among other things, credit quality deterioration; capital management activities, including possible future sales of new securities, or possible repurchases or redemptions by the Company of outstanding debt or equity securities; risks of expansion through acquisitions and mergers, such as unexpected credit quality problems of the acquired loans or other assets, unexpected attrition of the customer base of the acquired institution or branches, and difficulties in integration of the acquired operations; factors driving impairment charges on investments; the impact, extent and timing of technological changes; litigation liabilities, including related costs, expenses, settlements and judgments, or the outcome of matters before regulatory agencies, whether pending or commencing in the future; actions of the Federal Reserve Board; changes in accounting principles and interpretations; potential increases of federal deposit insurance premium expense, and possible future special assessments of FDIC premiums, either industry wide or specific to the Company’s banking subsidiary; actions of the regulatory authorities under the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Federal Deposit Insurance Act and other possible legislative and regulatory actions and reforms; and the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends. Such statements reflect our views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements. It is intended that these forward-looking statements speak only as of the date they are made. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.
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
9 of 11
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Balance Sheets
| | | March 31, | | | December 31, | | | March 31, | |
| | | 2014 | | | 2013 | | | 2013 | |
| | | | | | | | | | |
| ASSETS | | | | | | | | | |
| Cash and Due from Banks | | $ | 44,159 | | | $ | 37,370 | | | $ | 22,045 | |
| Short-term Investments | | | 8,991 | | | | 22,762 | | | | 6,917 | |
| Interest-bearing Time Deposits with Banks | | | 100 | | | | 100 | | | | 2,703 | |
| Investment Securities | | | 613,354 | | | | 606,300 | | | | 631,149 | |
| | | | | | | | | | | | | |
| Loans Held-for-Sale | | | 9,844 | | | | 9,265 | | | | 25,280 | |
| | | | | | | | | | | | | |
| Loans, Net of Unearned Income | | | 1,364,505 | | | | 1,382,382 | | | | 1,193,747 | |
| Allowance for Loan Losses | | | (15,484 | ) | | | (14,584 | ) | | | (15,734 | ) |
| Net Loans | | | 1,349,021 | | | | 1,367,798 | | | | 1,178,013 | |
| | | | | | | | | | | | | |
| Stock in FHLB and Other Restricted Stock | | | 9,004 | | | | 9,004 | | | | 8,340 | |
| Premises and Equipment | | | 39,983 | | | | 40,430 | | | | 36,527 | |
| Goodwill and Other Intangible Assets | | | 23,516 | | | | 23,864 | | | | 21,190 | |
| Other Assets | | | 48,418 | | | | 46,934 | | | | 46,858 | |
| TOTAL ASSETS | | $ | 2,146,390 | | | $ | 2,163,827 | | | $ | 1,979,022 | |
| | | | | | | | | | | | | |
| LIABILITIES | | | | | | | | | | | | |
| Non-interest-bearing Demand Deposits | | $ | 409,630 | | | $ | 400,024 | | | $ | 344,027 | |
| Interest-bearing Demand, Savings, and | | | | | | | | | | | | |
| Money Market Accounts | | | 1,015,711 | | | | 1,063,098 | | | | 983,170 | |
| Time Deposits | | | 342,434 | | | | 349,034 | | | | 332,712 | |
| Total Deposits | | | 1,767,775 | | | | 1,812,156 | | | | 1,659,909 | |
| | | | | | | | | | | | | |
| Borrowings | | | 159,991 | | | | 140,770 | | | | 114,223 | |
| Other Liabilities | | | 11,883 | | | | 10,804 | | | | 18,102 | |
| TOTAL LIABILITIES | | | 1,939,649 | | | | 1,963,730 | | | | 1,792,234 | |
| | | | | | | | | | | | | |
| SHAREHOLDERS' EQUITY | | | | | | | | | | | | |
| Common Stock and Surplus | | | 121,379 | | | | 121,196 | | | | 108,339 | |
| Retained Earnings | | | 88,361 | | | | 84,164 | | | | 70,334 | |
| Accumulated Other Comprehensive Income (Loss) | | | (2,999 | ) | | | (5,263 | ) | | | 8,115 | |
| TOTAL SHAREHOLDERS' EQUITY | | | 206,741 | | | | 200,097 | | | | 186,788 | |
| | | | | | | | | | | | | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | | $ | 2,146,390 | | | $ | 2,163,827 | | | $ | 1,979,022 | |
| | | | | | | | | | | | | |
| END OF PERIOD SHARES OUTSTANDING | | | 13,208,240 | | | | 13,173,793 | | | | 12,665,826 | |
| | | | | | | | | | | | | |
| BOOK VALUE PER SHARE | | $ | 15.65 | | | $ | 15.19 | | | $ | 14.75 | |
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
10 of 11
GERMAN AMERICAN BANCORP, INC.(unaudited, dollars in thousands except per share data)Consolidated Statements of Income
| | | Three Months Ended | |
| | | March 31, | | | December 31, | | | March 31, | |
| | | 2014 | | | 2013 | | | 2013 | |
| | | | | | | | | | |
| INTEREST INCOME | | | | | | | | | |
| Interest and Fees on Loans | | $ | 15,944 | | | $ | 16,405 | | | $ | 14,885 | |
| Interest on Short-term Investments and Time Deposits | | | 3 | | | | 5 | | | | 10 | |
| Interest and Dividends on Investment Securities | | | 3,734 | | | | 3,622 | | | | 3,475 | |
| TOTAL INTEREST INCOME | | | 19,681 | | | | 20,032 | | | | 18,370 | |
| | | | | | | | | | | | | |
| INTEREST EXPENSE | | | | | | | | | | | | |
| Interest on Deposits | | | 1,036 | | | | 1,164 | | | | 1,234 | |
| Interest on Borrowings | | | 449 | | | | 480 | | | | 911 | |
| TOTAL INTEREST EXPENSE | | | 1,485 | | | | 1,644 | | | | 2,145 | |
| | | | | | | | | | | | | |
| NET INTEREST INCOME | | | 18,196 | | | | 18,388 | | | | 16,225 | |
| Provision for Loan Losses | | | 350 | | | | 600 | | | | 350 | |
| NET INTEREST INCOME AFTER | | | | | | | | | | | | |
| PROVISION FOR LOAN LOSSES | | | 17,846 | | | | 17,788 | | | | 15,875 | |
| | | | | | | | | | | | | |
| NON-INTEREST INCOME | | | | | | | | | | | | |
| Net Gain on Sales of Loans | | | 476 | | | | 469 | | | | 754 | |
| Net Gain on Securities | | | 228 | | | | 921 | | | | 613 | |
| Other Non-interest Income | | | 5,577 | | | | 4,761 | | | | 4,543 | |
| TOTAL NON-INTEREST INCOME | | | 6,281 | | | | 6,151 | | | | 5,910 | |
| | | | | | | | | | | | | |
| NON-INTEREST EXPENSE | | | | | | | | | | | | |
| Salaries and Benefits | | | 8,424 | | | | 8,556 | | | | 7,784 | |
| Other Non-interest Expenses | | | 6,666 | | | | 6,042 | | | | 5,678 | |
| TOTAL NON-INTEREST EXPENSE | | | 15,090 | | | | 14,598 | | | | 13,462 | |
| | | | | | | | | | | | | |
| Income before Income Taxes | | | 9,037 | | | | 9,341 | | | | 8,323 | |
| Income Tax Expense | | | 2,732 | | | | 2,752 | | | | 2,514 | |
| | | | | | | | | | | | | |
| NET INCOME | | $ | 6,305 | | | $ | 6,589 | | | $ | 5,809 | |
| | | | | | | | | | | | | |
| BASIC EARNINGS PER SHARE | | $ | 0.48 | | | $ | 0.50 | | | $ | 0.46 | |
| DILUTED EARNINGS PER SHARE | | $ | 0.48 | | | $ | 0.50 | | | $ | 0.46 | |
| | | | | | | | | | | | | |
| WEIGHTED AVERAGE SHARES OUTSTANDING | | | 13,179,188 | | | | 13,164,889 | | | | 12,641,842 | |
| DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING | | | 13,203,701 | | | | 13,191,772 | | | | 12,661,692 | |
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
11 of 11
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
| | | | Three Months Ended | |
| | | | March 31, | | | December 31, | | | March 31, | |
| | | | 2014 | | | 2013 | | | 2013 | |
| EARNINGS PERFORMANCE RATIOS | | | | | | | | | |
| | Annualized Return on Average Assets | | | 1.18 | % | | | 1.23 | % | | | 1.17 | % |
| | Annualized Return on Average Equity | | | 12.33 | % | | | 13.07 | % | | | 12.49 | % |
| | Net Interest Margin | | | 3.78 | % | | | 3.73 | % | | | 3.60 | % |
| | Efficiency Ratio (1) | | | 60.18 | % | | | 58.17 | % | | | 59.76 | % |
| | Net Overhead Expense to Average Earning Assets (2) | | | 1.76 | % | | | 1.67 | % | | | 1.62 | % |
| | | | | | | | | | | | | | |
| ASSET QUALITY RATIOS | | | | | | | | | | | | |
| | Annualized Net Charge-offs to Average Loans | | | -0.16 | % | | | 0.14 | % | | | 0.04 | % |
| | Allowance for Loan Losses to Period End Loans | | | 1.13 | % | | | 1.05 | % | | | 1.32 | % |
| | Non-performing Assets to Period End Assets | | | 0.59 | % | | | 0.44 | % | | | 0.59 | % |
| | Non-performing Loans to Period End Loans | | | 0.86 | % | | | 0.61 | % | | | 0.83 | % |
| | Loans 30-89 Days Past Due to Period End Loans | | | 0.25 | % | | | 0.28 | % | | | 0.51 | % |
| | | | | | | | | | | | | | |
| SELECTED BALANCE SHEET & OTHER FINANCIAL DATA | | | | | | | | | | | | |
| | Average Assets | | $ | 2,132,809 | | | $ | 2,145,960 | | | $ | 1,983,915 | |
| | Average Earning Assets | | $ | 2,005,637 | | | $ | 2,020,847 | | | $ | 1,863,106 | |
| | Average Total Loans | | $ | 1,371,361 | | | $ | 1,372,391 | | | $ | 1,211,852 | |
| | Average Demand Deposits | | $ | 405,386 | | | $ | 396,215 | | | $ | 336,472 | |
| | Average Interest Bearing Liabilities | | $ | 1,511,896 | | | $ | 1,536,058 | | | $ | 1,440,995 | |
| | Average Equity | | $ | 204,617 | | | $ | 201,662 | | | $ | 186,021 | |
| | | | | | | | | | | | | | |
| | Period End Non-performing Assets (3) | | $ | 12,562 | | | $ | 9,415 | | | $ | 11,682 | |
| | Period End Non-performing Loans (4) | | $ | 11,792 | | | $ | 8,386 | | | $ | 9,944 | |
| | Period End Loans 30-89 Days Past Due (5) | | $ | 3,386 | | | $ | 3,829 | | | $ | 6,074 | |
| | | | | | | | | | | | | | |
| | Tax Equivalent Net Interest Income | | $ | 18,796 | | | $ | 18,944 | | | $ | 16,617 | |
| | Net Charge-offs during Period | | $ | (550 | ) | | $ | 480 | | | $ | 136 | |
| | | | | | | | | | | | | | |
| (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. | | |
