German American Bancorp, Inc. (GABC) Reports Record First Half Performance and Strong Second Quarter Loan Growth

JASPER, Ind., July 28, 2014 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (Nasdaq:GABC) today reported that it had achieved record financial performance during the first half of 2014. Net income in the first half of 2014 reached a record $13.0 million, or $0.98 per share, which was an increase of approximately 5%, on a reported net income basis, above the 2013 year-to-date net income of $12.3 million, or $0.97 per share. The Company's second quarter 2014 earnings were $6.7 million, or $0.51 per share, as compared to $6.3 million, or $0.48 per share, reported in the first quarter of 2014, and $6.5 million, or $0.52 per share, booked in the second quarter of 2013.

During the quarter ended June 30, 2014, German American also booked nearly a $50 million increase in total loans outstanding, which equates to approximately 14% annualized growth. Relative to the Company's position as of June 30, 2013, the Company's end-of-period loans outstanding increased by approximately $168 million, which represented a similar 14% growth rate over the one year period, inclusive of the loans acquired in connection with the United Commerce transaction.

Driven in part by the higher level of loans outstanding, the Company's net interest income increased by $3.6 million on a year-to-date comparison and by $1.6 million on a second quarter 2014 versus second quarter 2013 comparison, which equates to approximately a 10% increase for both comparison periods. Other positive contributors to German American's 2014 year-to-date financial performance included an enhanced level of insurance revenues, trust and investment fees, and deposit service charges.

Commenting on the Company's current year performance, Mark A. Schroeder, Chairman & CEO of German American, stated, "A major driver of our performance, during both the current quarter and first half of this year, has been our ability to generate double-digit annualized loan growth not only during the quarter, but also over the course of the past 12 months. As we've seen the economy continue to recover during the past year, we've also experienced an enhanced confidence by both our consumer and business clients. This improved level of confidence in the overall economic climate has resulted in a stronger level of loan demand, as evidenced by these significant increases in our total loans outstanding."

The comparison of German American's current year operating results with that of the prior year were 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 which opened on December 20, 2013, and the roll-out of the Company's new digital banking systems in the first half of 2014.

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 August 20, 2014 to shareholders of record as of August 10, 2014.

Balance Sheet Highlights

Total assets for the Company totaled $2.194 billion at June 30, 2014, an increase of $47.2 million, or 9% on an annualized basis, compared with March 31, 2014 and an increase of $183.0 million, or 9%, compared with June 30, 2013.

June 30, 2014 loans outstanding increased by $46.1 million or approximately 14% on an annualized basis, compared with March 31, 2014, and increased $167.6 million, or 14%, compared to June 30, 2013 total loans outstanding. The increase in loans was broad based across all categories of loans and throughout the Company's market area.

End of Period Loan Balances 06/30/14 03/31/14 06/30/13
(dollars in thousands)
Commercial & Industrial Loans $ 366,101 $ 344,045 $ 346,375
Commercial Real Estate Loans 594,681 589,193 508,675
Agricultural Loans 188,155 174,651 175,958
Consumer Loans 130,290 128,024 119,418
Residential Mortgage Loans 134,104 131,271 95,279
$ 1,413,331 $ 1,367,184 $ 1,245,705

Non-performing assets totaled $6.9 million at June 30, 2014 compared to $12.6 million of non-performing assets at March 31, 2014 and $10.2 million at June 30, 2013. Non-performing assets represented 0.31% of total assets at June 30, 2014 compared to 0.59% of total assets at March 31, 2014, and compared to 0.51% at June 30, 2013. Non-performing loans totaled $6.0 million at June 30, 2014 compared to $11.8 million at March 31, 2014 and compared to $8.6 million of non-performing loans at June 30, 2013. Non-performing loans represented 0.42% of total loans at June 30, 2014 compared with 0.86% of total loans outstanding at March 31, 2014 and 0.69% of total loans outstanding at June 30, 2013.

Non-performing Assets
(dollars in thousands)
06/30/14 03/31/14 06/30/13
Non-Accrual Loans $ 5,902 $ 11,776 $ 8,510
Past Due Loans (90 days or more) 67 16 94
Total Non-Performing Loans 5,969 11,792 8,604
Other Real Estate 935 770 1,560
Total Non-Performing Assets $ 6,904 $ 12,562 $ 10,164
Restructured Loans $ 3,942 $ 2,246 $ 2,395

The Company's allowance for loan losses totaled $15.6 million at June 30, 2014 representing an increase of $66,000, or 2% on an annualized basis, from March 31, 2014 and an increase of $287,000, or 2%, from June 30, 2013. The allowance for loan losses represented 1.10% of period-end loans at June 30, 2014 compared with 1.13% of period-end loans at March 31, 2014 and 1.23% of period-end loans at June 30, 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 $4.9 million as of June 30, 2014, $5.4 million at March 31, 2014 and $2.8 million at June 30, 2013.

Total deposits decreased $25.4 million or 6% on an annualized basis, as of June 30, 2014 compared with March 31, 2014 total deposits and increased by $100.5 million or 6% compared with June 30, 2013.

End of Period Deposit Balances 06/30/14 03/31/14 06/30/13
(dollars in thousands)
Non-interest-bearing Demand Deposits $ 398,621 $ 409,630 $ 331,571
IB Demand, Savings, and MMDA Accounts 1,010,367 1,015,711 982,665
Time Deposits < $100,000 209,998 216,227 219,422
Time Deposits > $100,000 123,393 126,207 108,251
$ 1,742,379 $ 1,767,775 $ 1,641,909

Results of Operations Highlights – Quarter ended June 30, 2014

Net income for the quarter ended June 30, 2014 totaled $6,687,000 or $0.51 per share, an increase of $382,000, or 6% on a per share basis, from the first quarter of 2014 net income of $6,305,000 or $0.48 per share. Net income for the second quarter of 2014 increased $155,000, or 2%, from the second quarter of 2013 net income of $6,532,000, but declined on a per share basis by $0.01 per share, or approximately 2%, from the $0.52 per share earned during the second quarter of 2013.

Summary Average Balance Sheet
(Tax-equivalent basis / dollars in thousands)
Quarter Ended June 30, 2014 Quarter Ended March 31, 2014 Quarter Ended June 30, 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 $ 12,493 $ 3 0.11% $ 12,149 $ 3 0.10% $ 14,806 $ 13 0.35%
Securities 626,057 4,232 2.70% 622,127 4,260 2.74% 634,161 3,754 2.37%
Loans and Leases 1,390,185 16,215 4.68% 1,371,361 16,018 4.73% 1,233,024 15,088 4.91%
Total Interest Earning Assets $ 2,028,735 $ 20,450 4.04% $ 2,005,637 $ 20,281 4.08% $ 1,881,991 $ 18,855 4.01%
Liabilities
Demand Deposit Accounts $ 400,656 $ 405,386 $ 340,767
IB Demand, Savings, and MMDA Accounts $ 1,039,376 $ 322 0.12% $ 1,041,009 $ 321 0.13% $ 1,001,535 $ 398 0.16%
Time Deposits 336,901 715 0.85% 340,160 715 0.85% 334,412 756 0.91%
FHLB Advances and Other Borrowings 153,989 467 1.22% 130,727 449 1.39% 118,947 592 2.00%
Total Interest-Bearing Liabilities $ 1,530,266 $ 1,504 0.39% $ 1,511,896 $ 1,485 0.40% $ 1,454,894 $ 1,746 0.48%
Cost of Funds 0.30% 0.30% 0.37%
Net Interest Income $ 18,946 $ 18,796 $ 17,109
Net Interest Margin 3.74% 3.78% 3.64%

During the quarter ended June 30, 2014, net interest income totaled $18,321,000 representing an increase of $125,000, or 1%, from the quarter ended March 31, 2014 net interest income of $18,196,000 and an increase of $1,609,000, or 10%, compared with the quarter ended June 30, 2013 net interest income of $16,712,000. The tax equivalent net interest margin for the quarter ended June 30, 2014 was 3.74% compared to 3.78% in the second quarter of 2014 and 3.64% in the second quarter of 2013. The increase in net interest income in the second quarter of 2014 compared with the first quarter of 2014 was primarily attributable to growth in the level of average loans outstanding. The increase in net interest income during the second quarter of 2014 compared with the second quarter of 2013 was largely attributable to growth of the loan portfolio and to a reduced cost of funds.

The decline in the net interest margin in the second quarter of 2014 compared with the first quarter of 2014 was largely attributable to continued downward pressure on the Company's loan portfolio yield. The improvement of the net interest margin in the second quarter of 2014 compared with the second quarter of 2013 was primarily attributable to an increased level of average loans outstanding, 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 6 basis points on an annualized basis to the net interest margin in the second quarter of 2014, 5 basis points in first quarter of 2014 and 6 basis points in the second quarter of 2013.

During the quarter ended June 30, 2014, the provision for loan loss totaled $200,000 representing a decline of $150,000, or 43%, from the provision of $350,000 during the first quarter of 2014 and an increase of $400,000 from the negative provision of $200,000 during the second quarter of 2013. During the second quarter of 2014, the provision for loan loss represented approximately 6 basis points of average loans on an annualized basis. During the second quarter of 2014, the Company had net charge-offs of $134,000 representing approximately 4 basis points of average loans on an annualized basis.

During the quarter ended June 30, 2014, non-interest income totaled $5,502,000, a decline of $779,000 or 12%, compared with the quarter ended March 31, 2014, and a decline of $608,000, or 10%, compared with the second quarter of 2013.

Quarter Ended Quarter Ended Quarter Ended
Non-interest Income 06/30/14 03/31/14 06/30/13
(dollars in thousands)
Trust and Investment Product Fees $ 905 $ 922 $ 814
Service Charges on Deposit Accounts 1,191 1,061 1,050
Insurance Revenues 1,482 2,556 1,379
Company Owned Life Insurance 192 201 217
Interchange Fee Income 512 447 513
Other Operating Income 590 390 861
Subtotal 4,872 5,577 4,834
Net Gains on Loans 386 476 809
Net Gains on Securities 244 228 467
Total Non-interest Income $ 5,502 $ 6,281 $ 6,110

Insurance revenues declined $1,074,000, or 42%, during the quarter ended June 30, 2014, compared with the first quarter of 2014 and increased $103,000, or 7%, compared with the second quarter of 2013. The decline during the second quarter of 2014 compared with first quarter of 2014 was related to contingency revenue. There was no contingency revenue received during the second quarter of 2014 while contingency revenue during the first quarter of 2014 totaled $1,049,000. Typically the receipt of contingency revenue occurs during the first quarter of the calendar year as did occur in 2014 and is reflective of claims and loss experience with insurance carriers that the Company represents through its property and casualty insurance agency.

Other operating income increased $200,000, or 51%, during the quarter ended June 30, 2014 compared with the first quarter of 2014 and decreased $271,000, or 31%, compared with the second quarter of 2013. The variance in both comparative periods was largely related to fees and fair value adjustments associated with interest rate swap transactions with loan customers.

Net gains on sales of loans totaled $386,000 during the quarter ended June 30, 2014, a decline of $90,000, or 19%, compared to the first quarter of 2014 and a decline of $423,000, or 52%, compared with the second quarter of 2013. Loan sales totaled $21.8 million during the second quarter of 2014, compared with $21.9 million during the first quarter of 2014 and $54.2 million during the second quarter of 2013.

During the second quarter of 2014, the Company realized a net gain on the sale of securities of $244,000 compared with a net gain of $228,000 during the first quarter of 2014 and $467,000 during the second quarter of 2013.

During the quarter ended June 30, 2014, non-interest expense totaled $14,139,000, a decline of $951,000, or 6%, compared with the quarter ended March 31, 2014, and an increase of $878,000, or 7%, compared with the second quarter of 2013.

Quarter Ended Quarter Ended Quarter Ended
Non-interest Expense 06/30/14 03/31/14 06/30/13
(dollars in thousands)
Salaries and Employee Benefits $ 7,886 $ 8,424 $ 7,627
Occupancy, Furniture and Equipment Expense 1,698 1,825 1,565
FDIC Premiums 276 275 260
Data Processing Fees 947 1,010 672
Professional Fees 553 692 525
Advertising and Promotion 544 478 516
Intangible Amortization 325 348 348
Other Operating Expenses 1,910 2,038 1,748
Total Non-interest Expense $ 14,139 $ 15,090 $ 13,261

Salaries and benefits decreased $538,000, or 6%, during the quarter ended June 30, 2014 compared with the first quarter of 2014 and increased $259,000, or 3%, compared with the second quarter of 2013. The decline in salaries and benefits during the second quarter of 2014 compared with the first quarter of 2014 was primarily due to lower costs related to the Company's partially self-insured health insurance plan and lower costs attributable to benefits and payroll taxes that are directly attributable to the levels of cash compensation paid. The increase in salaries and benefits during the second quarter of 2014 compared with the second quarter of 2013 was largely attributable to an increased number of full-time equivalent employees and to the acquisition of United Commerce Bancorp which occurred in the fourth quarter of 2013.

Occupancy, furniture and equipment expense decreased $127,000, or 7%, during the quarter ended June 30, 2014 compared with the first quarter of 2014 and increased $133,000, or 9%, compared with the second quarter of 2013. The decrease compared with the first quarter of 2014 was largely attributable to lower costs of utilities and repairs and maintenance items including snow removal. The increase compared with the second 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 $63,000, or 6%, during the second quarter of 2014 compared with the first quarter of 2014 and increased $275,000, or 41%, compared with the second quarter of 2013. The data processing fees during the second quarter of 2014 compared with the second quarter of 2013 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.

Professional fees declined $139,000, or 20%, during the quarter ended June 30, 2014 compared with the first quarter of 2014 and increased $28,000 compared with the second quarter of 2013. The decrease during the second quarter of 2014 compared with the first quarter of 2014 was largely related to professional fees associated with the acquisition of United Commerce Bancorp.

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.

GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Balance Sheets
June 30, March 31, June 30,
2014 2014 2013
ASSETS
Cash and Due from Banks $ 40,391 $ 44,159 $ 28,390
Short-term Investments 16,723 8,991 10,105
Interest-bearing Time Deposits with Banks 100 100 1,253
Investment Securities 615,576 613,354 612,837
Loans Held-for-Sale 8,812 9,844 19,435
Loans, Net of Unearned Income 1,409,485 1,364,505 1,242,964
Allowance for Loan Losses (15,550) (15,484) (15,263)
Net Loans 1,393,935 1,349,021 1,227,701
Stock in FHLB and Other Restricted Stock 9,096 9,004 8,340
Premises and Equipment 40,479 39,983 36,702
Goodwill and Other Intangible Assets 23,191 23,516 20,842
Other Assets 45,270 48,418 45,007
TOTAL ASSETS $ 2,193,573 $ 2,146,390 $ 2,010,612
LIABILITIES
Non-interest-bearing Demand Deposits $ 398,621 $ 409,630 $ 331,571
Interest-bearing Demand, Savings, and Money Market Accounts 1,010,367 1,015,711 982,665
Time Deposits 333,391 342,434 327,673
Total Deposits 1,742,379 1,767,775 1,641,909
Borrowings 225,546 159,991 175,640
Other Liabilities 11,310 11,883 11,202
TOTAL LIABILITIES 1,979,235 1,939,649 1,828,751
SHAREHOLDERS' EQUITY
Common Stock and Surplus 121,566 121,379 108,433
Retained Earnings 92,934 88,361 74,967
Accumulated Other Comprehensive Income (Loss) (162) (2,999) (1,539)
TOTAL SHAREHOLDERS' EQUITY 214,338 206,741 181,861
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,193,573 $ 2,146,390 $ 2,010,612
END OF PERIOD SHARES OUTSTANDING 13,210,395 13,208,240 12,666,936
BOOK VALUE PER SHARE $ 16.22 $ 15.65 $ 14.36
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Statements of Income
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2014 2014 2013 2014 2013
INTEREST INCOME
Interest and Fees on Loans $ 16,142 $ 15,944 $ 15,035 $ 32,086 $ 29,920
Interest on Short-term Investments and Time Deposits 3 3 13 6 23
Interest and Dividends on Investment Securities 3,680 3,734 3,410 7,414 6,885
TOTAL INTEREST INCOME 19,825 19,681 18,458 39,506 36,828
INTEREST EXPENSE
Interest on Deposits 1,037 1,036 1,154 2,073 2,388
Interest on Borrowings 467 449 592 916 1,503
TOTAL INTEREST EXPENSE 1,504 1,485 1,746 2,989 3,891
NET INTEREST INCOME 18,321 18,196 16,712 36,517 32,937
Provision for Loan Losses 200 350 (200) 550 150
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 18,121 17,846 16,912 35,967 32,787
NON-INTEREST INCOME
Net Gain on Sales of Loans 386 476 809 862 1,563
Net Gain on Securities 244 228 467 472 1,080
Other Non-interest Income 4,872 5,577 4,834 10,449 9,377
TOTAL NON-INTEREST INCOME 5,502 6,281 6,110 11,783 12,020
NON-INTEREST EXPENSE
Salaries and Benefits 7,886 8,424 7,627 16,310 15,411
Other Non-interest Expenses 6,253 6,666 5,634 12,919 11,312
TOTAL NON-INTEREST EXPENSE 14,139 15,090 13,261 29,229 26,723
Income before Income Taxes 9,484 9,037 9,761 18,521 18,084
Income Tax Expense 2,797 2,732 3,229 5,529 5,743
NET INCOME $ 6,687 $ 6,305 $ 6,532 $ 12,992 $ 12,341
BASIC EARNINGS PER SHARE $ 0.51 $ 0.48 $ 0.52 $ 0.98 $ 0.98
DILUTED EARNINGS PER SHARE $ 0.51 $ 0.48 $ 0.52 $ 0.98 $ 0.97
WEIGHTED AVERAGE SHARES OUTSTANDING 13,210,150 13,179,188 12,666,315 13,194,754 12,654,146
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING 13,230,812 13,203,701 12,683,127 13,216,084 12,671,706
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Three Months Ended Six Months Ended
June 30, March 31, June 30, June 30, June 30,
2014 2014 2013 2014 2013
EARNINGS PERFORMANCE RATIOS
Annualized Return on Average Assets 1.24% 1.18% 1.31% 1.21% 1.24%
Annualized Return on Average Equity 12.68% 12.33% 13.82% 12.50% 13.16%
Net Interest Margin 3.74% 3.78% 3.64% 3.76% 3.62%
Efficiency Ratio (1) 57.83% 60.18% 57.11% 59.02% 58.41%
Net Overhead Expense to Average Earning Assets (2) 1.70% 1.76% 1.52% 1.73% 1.57%
ASSET QUALITY RATIOS
Annualized Net Charge-offs to Average Loans 0.04% -0.16% 0.09% -0.06% 0.07%
Allowance for Loan Losses to Period End Loans 1.10% 1.13% 1.23%
Non-performing Assets to Period End Assets 0.31% 0.59% 0.51%
Non-performing Loans to Period End Loans 0.42% 0.86% 0.69%
Loans 30-89 Days Past Due to Period End Loans 0.34% 0.25% 0.37%
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA
Average Assets $ 2,152,785 $ 2,132,809 $ 2,001,143 $ 2,142,852 $ 1,992,576
Average Earning Assets $ 2,028,735 $ 2,005,637 $ 1,881,991 $ 2,017,250 $ 1,872,601
Average Total Loans $ 1,390,185 $ 1,371,361 $ 1,233,024 $ 1,380,825 $ 1,222,497
Average Demand Deposits $ 400,656 $ 405,386 $ 340,767 $ 403,008 $ 338,631
Average Interest Bearing Liabilities $ 1,530,266 $ 1,511,896 $ 1,454,894 $ 1,521,132 $ 1,447,983
Average Equity $ 210,960 $ 204,617 $ 189,026 $ 207,806 $ 187,532
Period End Non-performing Assets (3) $ 6,904 $ 12,562 $ 10,164
Period End Non-performing Loans (4) $ 5,969 $ 11,792 $ 8,604
Period End Loans 30-89 Days Past Due (5) $ 4,728 $ 3,386 $ 4,626
Tax Equivalent Net Interest Income $ 18,946 $ 18,796 $ 17,109 $ 37,742 $ 33,726
Net Charge-offs during Period $ 134 $ (550) $ 271 $ (416) $ 407
(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.

CONTACT: 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) 482-1314Source:German American Bancorp, Inc.