JASPER, Ind., July 25, 2007 (PRIME NEWSWIRE) -- German American Bancorp, Inc. (Nasdaq:GABC) today reported 2nd quarter 2007 earnings of $2,643,000, or $0.24 per share, a 6% increase over last year same period earnings of $2,488,000, or $0.23 per share.
The comparison of the Company's 2nd quarter 2007 results with that of the prior year's was positively affected by a $596,000, or 7%, increase in net interest income and a $332,000, or 9%, increase in non-interest income. The increase in net interest income was driven by a 20% increase in the Company's loan portfolio during the twelve month period ended June 30, 2007. On a linked quarter basis (2nd quarter versus 1st quarter 2007), the end of period loan portfolio balances increased at a similar annualized 20% rate during the 2nd quarter of this year.
The increase in the level of the Company's non-interest income was derived from a number of sources, including a $104,000, or 10%, increase in deposit service charges and a $95,000, or 17%, increase in trust and investment product fees. Additionally, insurance revenues increased by $432,000, or 39%. $241,000 of this increase was related to the inclusion of the 2007 revenues of the Keach & Grove Agency, which was purchased in the 4th quarter of last year. On a same agency basis, insurance commission revenue, exclusive of $109,000 in contingency commissions, increased by approximately $112,000, or 11%. Somewhat offsetting these positive period over period comparisons was the inclusion in last year's 2nd quarter non-interest income of $272,000 of mortgage servicing related revenue which included a $219,000 gain from the sale of the Company's mortgage servicing portfolio during the 2nd quarter of last year.
The Company's non-interest expenses increased by only $189,000, a modest 2%, in spite of the inclusion of the operating expenses of both the Keach & Grove Agency and the new Bloomington banking office, which opened in February of this year, in the 2007 data. Approximately $534,000 of the 2nd quarter 2007 operating expenses, representing more than the quarter-to-quarter increase in the Company's non-interest expenses, were attributable to these two newest components of the Company's operations. Absent the operating expenses of these new operations, the Company's total non-interest expense would have declined by $345,000, or 4%, during the 2nd quarter of this year as compared to the same period in 2006.
"We're extremely pleased with our 2nd quarter results which were the result of both a strong level of revenue growth in virtually every component of the Company's operations and our ability to generate that revenue growth while controlling the level of our operating expenses," stated Mark A. Schroeder, German American's President & Chief Executive Officer. "We are particularly gratified by the growth within our lending portfolio," Schroeder continued. "Business and consumer customers throughout our market area are increasingly turning to German American for all their financial needs. We're very pleased that the combination of our highly qualified financial professionals, local decision-making, and customer-focused products and services continues to find a receptive audience within the communities we serve."
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 August 20, 2007 to shareholders of record as of August 10, 2007.
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 30 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.
Forward-Looking Statements
German American's statements in this press release regarding its outlook for its future financial performance 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.
In addition, German American's statements in this press release include an annualization of its loan growth rate based on loan growth within the 2nd quarter of 2007. German American does not, by doing so, intend to suggest that the actual loan growth rate for 2007 or for any other twelve-month period that includes the 2nd quarter of 2007, will necessarily prove to be equal to or greater than the loan growth figure presented on an annualized basis; loan growth rates for any twelve-month period may be materially less than annualized figures, due to the above or other factors.
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Balance Sheets
---------------------------------------------------------------------
June 30,
2007 2006
---------- ----------
ASSETS
Cash and Due from Banks $ 25,538 $ 26,149
Short-term Investments 4,181 5,424
Investment Securities 160,522 206,218
Loans Held-for-Sale 2,496 2,261
Loans, Net of Unearned Income 850,205 705,787
Allowance for Loan Losses (7,776) (9,019)
---------- ----------
Net Loans 842,429 696,768
Stock in FHLB and Other Restricted Stock 10,621 14,483
Premises and Equipment 23,721 23,124
Goodwill and Other Intangible Assets 14,132 12,710
Other Assets 38,265 37,403
---------- ----------
TOTAL ASSETS $1,121,905 $1,024,540
========== ==========
LIABILITIES
Non-interest-bearing Demand Deposits $ 131,374 $ 126,011
Interest-bearing Demand, Savings, and
Money Market Accounts 330,956 319,104
Time Deposits 449,777 359,658
---------- ----------
Total Deposits 912,107 804,773
Borrowings 103,845 119,717
Other Liabilities 13,459 11,322
---------- ----------
TOTAL LIABILITIES 1,029,411 935,812
---------- ----------
SHAREHOLDERS' EQUITY
Common Stock and Surplus 79,398 79,202
Retained Earnings 14,486 11,362
Accumulated Other Comprehensive Loss (1,390) (1,836)
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 92,494 88,728
---------- ----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,121,905 $1,024,540
========== ==========
END OF PERIOD SHARES OUTSTANDING 11,029,087 11,008,821
BOOK VALUE PER SHARE $ 8.39 $ 8.06
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Consolidated Statements of Income
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Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
-------- -------- -------- -------
INTEREST INCOME
Interest and Fees on
Loans $15,846 $12,813 $30,913 $25,195
Interest on Short-term
Investments 84 136 204 262
Interest and Dividends
on Investment
Securities 2,028 2,428 4,170 4,668
------- ------- ------- -------
TOTAL INTEREST INCOME 17,958 15,377 35,287 30,125
------- ------- ------- -------
INTEREST EXPENSE
Interest on Deposits 6,825 5,068 13,255 9,550
Interest on Borrowings 1,639 1,411 3,163 2,801
------- ------- ------- -------
TOTAL INTEREST EXPENSE 8,464 6,479 16,418 12,351
------- ------- ------- -------
NET INTEREST INCOME 9,494 8,898 18,869 17,774
Provision for Loan
Losses 375 54 2,303 344
------- ------- ------- -------
NET INTEREST INCOME
AFTER PROVISION FOR
LOAN LOSSES 9,119 8,844 16,566 17,430
------- ------- ------- -------
NON-INTEREST INCOME
Net Gain on Sales of
Loans and Related
Assets 198 454 376 667
Net Gain / (Loss)
on Securities -- -- -- --
Other Non-interest
Income 3,982 3,394 7,714 6,977
------- ------- ------- -------
TOTAL NON-INTEREST
INCOME 4,180 3,848 8,090 7,644
------- ------- ------- -------
NON-INTEREST EXPENSE
Salaries and Benefits 5,554 5,367 11,057 10,551
Other Non-interest
Expenses 3,869 3,867 7,800 7,488
------- ------- ------- -------
TOTAL NON-INTEREST
EXPENSE 9,423 9,234 18,857 18,039
------- ------- ------- -------
Income before
Income Taxes 3,876 3,458 5,799 7,035
Income Tax Expense 1,233 970 1,677 1,984
------- ------- ------- -------
NET INCOME $ 2,643 $ 2,488 $ 4,122 $ 5,051
======= ======= ======= =======
EARNINGS PER SHARE &
DILUTED EARNINGS
PER SHARE $ 0.24 $ 0.23 $ 0.37 $ 0.46
WEIGHTED
AVERAGE SHARES
OUTSTANDING 11,008,562 10,993,898 11,008,562 10,993,567
DILUTED WEIGHTED
AVERAGE SHARES
OUTSTANDING 11,022,693 11,000,933 11,020,284 11,002,190
GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
2007 2006 2007 2006
---------- ----------- ----------- ----------
EARNINGS
PERFORMANCE RATIOS
Annualized Return
on Average Assets 0.95% 0.98% 0.75% 1.00%
Annualized Return
on Average Equity 11.45% 11.36% 8.90% 11.53%
Net Interest
Margin 3.78% 3.99% 3.83% 4.01%
Efficiency Ratio
(1) 68.16% 70.85% 69.10% 69.41%
Net Overhead
Expense to
Average Earning
Assets (2) 2.05% 2.33% 2.13% 2.26%
ASSET QUALITY RATIOS
Annualized Net
Charge-offs to
Average Loans 0.10% 0.44% 0.41% 0.31%
Allowance for
Loan Losses to
Period End Loans 0.91% 1.28%
Non-performing
Assets to Period
End Assets 0.59% 1.24%
Non-performing
Loans to Period
End Loans 0.64% 1.66%
SELECTED BALANCE
SHEET & OTHER
FINANCIAL DATA
Average Assets $1,112,972 $1,012,966 $1,101,568 $1,008,783
Average Earning
Assets $1,020,979 $ 922,960 $1,009,651 $ 919,989
Average Total
Loans $ 834,452 $ 693,648 $ 816,943 $ 693,249
Average Demand
Deposits $ 134,805 $ 129,605 $ 134,156 $ 131,150
Average Interest
Bearing
Liabilities $ 872,475 $ 783,330 $ 861,491 $ 776,976
Average Equity $ 92,355 $ 87,595 $ 92,580 $ 87,639
Period End
Non-performing
Assets (3) $ 6,588 $ 12,725
Period End
Non-performing
Loans (4) $ 5,436 $ 11,738
Tax Equivalent
Net Interest
Income $ 9,646 $ 9,186 $ 19,198 $ 18,346
Net Charge-offs
during Period $ 219 $ 757 $ 1,656 $ 1,074
(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.