Attached files
| file | filename |
|---|---|
| 8-K - 8-K - GERMAN AMERICAN BANCORP, INC. | earningsreleaseq32016.htm |
Exhibit 99.1
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chairman & 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 12
October 31, 2016 | GERMAN AMERICAN BANCORP, INC. (GABC) REPORTS RECORD QUARTERLY EARNINGS |
Jasper, Indiana: October 31, 2016 -- German American Bancorp, Inc. (NASDAQ: GABC) today reported 2016 third quarter earnings of $10.2 million, or $0.67 per share. This level of quarterly earnings represents the first time in its 106 year history that the Company reported quarterly earnings exceeding the $10 million mark. The current quarter record performance represented an increase of approximately 5% on a per share basis as compared to the $9.8 million, or $0.64 per share, earned in the second quarter of 2016. Relative to third quarter earnings in the prior year of $7.7 million, or $0.58 per share, the current quarter earnings performance represented an increase of approximately 16% on a per share basis. Reported earnings for both the second and third quarters of 2016 were enhanced by the inclusion of the operations of River Valley Bancorp, and its banking subsidiary River Valley Financial Bank, following the acquisition of River Valley on March 1, 2016.
German American’s record third quarter performance, as compared to the second quarter 2016 results, was driven by several factors, including a $41.8 million increase in end of period loans, which represented an approximate increase of 9%, on an annualized basis, as of September 30, 2016 from end of period balances as of June 30, 2016. Additionally, a continued improvement in the quality of the loan portfolio allowed the Company to not have the need to book a provision for loan losses in the current quarter, which was a $350,000 expense improvement from the second quarter 2016 results.
Commenting on the Company’s posting of the record quarterly operating performance, Mark A. Schroeder stated, "We’re very pleased to have achieved the milestone of $10 million in quarterly net income, and are likewise pleased with the continuation of the strong level of organic loan growth we experienced during the quarter. We believe this combination of strong organic loan growth coupled with the exceptional level of credit quality within our loan portfolio bodes well in terms of our ability to continue to generate strong operating performance.”
The Company also announced that its Board of Directors declared its regular quarterly cash dividend of $0.18 per share, which will be payable on November 20, 2016 to shareholders of record as of November 10, 2016.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chairman & 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 12
Balance Sheet Highlights
Total assets for the Company increased to $2.980 billion at September 30, 2016, representing an increase of $63.7 million, or 9% on an annualized basis, compared with June 30, 2016 and an increase of $666.3 million compared with September 30, 2015. The year-over-year increase was largely attributable to the acquisition of River Valley Bancorp ("River Valley") and its banking subsidiary River Valley Financial Bank effective March 1, 2016. River Valley's total assets as of the effective date of the merger totaled approximately $516.3 million.
September 30, 2016 total loans increased $41.8 million, or 9% on an annualized basis, compared with June 30, 2016 and increased $488.8 million, or 32%, compared with September 30, 2015. The majority of the loan growth during the third quarter of 2016 was from the Company's existing branch network, excluding River Valley.
End of Period Loan Balances | 9/30/2016 | 6/30/2016 | 9/30/2015 | |||||||||
(dollars in thousands) | ||||||||||||
Commercial & Industrial Loans | $ | 469,255 | $ | 463,501 | $ | 404,946 | ||||||
Commercial Real Estate Loans | 862,998 | 840,215 | 600,688 | |||||||||
Agricultural Loans | 299,080 | 285,353 | 236,619 | |||||||||
Consumer Loans | 186,854 | 182,610 | 138,387 | |||||||||
Residential Mortgage Loans | 187,903 | 192,603 | 136,645 | |||||||||
$ | 2,006,090 | $ | 1,964,282 | $ | 1,517,285 | |||||||
Non-performing assets totaled $5.5 million at September 30, 2016 compared to $9.7 million of non-performing assets at June 30, 2016 and $5.5 million at September 30, 2015. Non-performing assets represented 0.18% of total assets at September 30, 2016 compared to 0.33% of total assets at June 30, 2016 and 0.24% of total assets at September 30, 2015. Non-performing loans totaled $5.1 million at September 30, 2016 compared to $9.3 million at June 30, 2016 and $5.3 million of non-performing loans at September 30, 2015. Non-performing loans represented 0.25% of total loans at September 30, 2016 compared to 0.48% at June 30, 2016 and 0.35% at September 30, 2015. The decline in non-performing assets and non-performing loans during the third quarter of 2016 compared with June 30, 2016 levels was attributable to both a decline in non-performing loans acquired in the River Valley merger transaction and to the payoff of a single non-accrual commercial real estate credit relationship unrelated to River Valley.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chairman & 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 12
Non-performing Assets | |||||||||||
(dollars in thousands) | |||||||||||
9/30/2016 | 6/30/2016 | 9/30/2015 | |||||||||
Non-Accrual Loans | $ | 4,906 | $ | 8,294 | $ | 5,326 | |||||
Past Due Loans (90 days or more) | 191 | 1,024 | 10 | ||||||||
Total Non-Performing Loans | 5,097 | 9,318 | 5,336 | ||||||||
Other Real Estate | 355 | 416 | 123 | ||||||||
Total Non-Performing Assets | $ | 5,452 | $ | 9,734 | $ | 5,459 | |||||
Restructured Loans | $ | 50 | $ | 74 | $ | 2,309 | |||||
The Company’s allowance for loan losses totaled $15.2 million at September 30, 2016 compared to $15.3 million at June 30, 2016 and $14.8 million at September 30, 2015. The allowance for loan losses represented 0.76% of period-end loans at September 30, 2016 compared with 0.78% of period-end loans at June 30, 2016 and 0.98% of period-end loans at September 30, 2015. The year-over-year decline in the allowance for loan loss as a percent of total loans was the result of the acquisition of River Valley. 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 $11.1 million as of September 30, 2016, $11.8 million at June 30, 2016 and $3.1 million at September 30, 2015.
Total deposits increased $52.2 million, or 9% on an annualized basis, as of September 30, 2016 compared with June 30, 2016 and increased $525.8 million compared with September 30, 2015. The increase in total deposits as of September 30, 2016 compared with September 30, 2015 was largely attributable to the acquisition of River Valley which had total deposits of approximately $405.4 million as of the effective date of the merger.
End of Period Deposit Balances | 9/30/2016 | 6/30/2016 | 9/30/2015 | |||||||||
(dollars in thousands) | ||||||||||||
Non-interest-bearing Demand Deposits | $ | 534,620 | $ | 506,498 | $ | 418,947 | ||||||
IB Demand, Savings, and MMDA Accounts | 1,361,522 | 1,380,038 | 1,039,520 | |||||||||
Time Deposits < $100,000 | 214,235 | 236,127 | 194,408 | |||||||||
Time Deposits > $100,000 | 219,286 | 154,709 | 150,960 | |||||||||
$ | 2,329,663 | $ | 2,277,372 | $ | 1,803,835 | |||||||
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chairman & 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 12
Results of Operations Highlights – Quarter ended September 30, 2016
Net income for the quarter ended September 30, 2016 totaled $10,185,000, or $0.67 per share, which represented an increase of approximately 5% on a per share basis compared with the second quarter 2016 net income of $9,788,000, or $0.64 per share, and represented an increase of approximately 16% on a per share basis compared with the third quarter 2015 net income $7,721,000 or $0.58 per share. The results of operations during both the second and third quarters of 2016 fully included the operations of River Valley.
Summary Average Balance Sheet | |||||||||||||||||||||||||||||||||
(Tax-equivalent basis / dollars in thousands) | |||||||||||||||||||||||||||||||||
Quarter Ended | Quarter Ended | Quarter Ended | |||||||||||||||||||||||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||||||||||||||||||||||||||
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 | $ | 22,709 | $ | 25 | 0.44 | % | $ | 25,918 | $ | 20 | 0.30 | % | $ | 22,155 | $ | 3 | 0.06 | % | |||||||||||||||
Securities | 734,869 | 5,426 | 2.95 | % | 723,222 | 5,168 | 2.86 | % | 629,470 | 4,541 | 2.89 | % | |||||||||||||||||||||
Loans and Leases | 1,982,291 | 22,475 | 4.51 | % | 1,935,246 | 22,791 | 4.73 | % | 1,492,772 | 16,796 | 4.47 | % | |||||||||||||||||||||
Total Interest Earning Assets | $ | 2,739,869 | $ | 27,926 | 4.07 | % | $ | 2,684,386 | $ | 27,979 | 4.19 | % | $ | 2,144,397 | $ | 21,340 | 3.96 | % | |||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Demand Deposit Accounts | $ | 522,994 | $ | 502,070 | $ | 428,380 | |||||||||||||||||||||||||||
IB Demand, Savings, and | |||||||||||||||||||||||||||||||||
MMDA Accounts | $ | 1,363,654 | $ | 671 | 0.20 | % | $ | 1,369,446 | $ | 672 | 0.20 | % | $ | 1,027,035 | $ | 329 | 0.13 | % | |||||||||||||||
Time Deposits | 416,968 | 652 | 0.62 | % | 426,918 | 654 | 0.62 | % | 355,853 | 658 | 0.73 | % | |||||||||||||||||||||
FHLB Advances and Other Borrowings | 274,365 | 851 | 1.23 | % | 235,434 | 853 | 1.46 | % | 200,831 | 573 | 1.13 | % | |||||||||||||||||||||
Total Interest-Bearing Liabilities | $ | 2,054,987 | $ | 2,174 | 0.42 | % | $ | 2,031,798 | $ | 2,179 | 0.43 | % | $ | 1,583,719 | $ | 1,560 | 0.39 | % | |||||||||||||||
Cost of Funds | 0.32 | % | 0.33 | % | 0.29 | % | |||||||||||||||||||||||||||
Net Interest Income | $ | 25,752 | $ | 25,800 | $ | 19,780 | |||||||||||||||||||||||||||
Net Interest Margin | 3.75 | % | 3.86 | % | 3.67 | % | |||||||||||||||||||||||||||
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chairman & 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 12
During the quarter ended September 30, 2016, net interest income totaled $24,560,000 representing a less than than 1% decline from the quarter ended June 30, 2016 net interest income of $24,671,000 and an increase of $5,701,000, or 30%, compared with the quarter ended September 30, 2015 net interest income of $18,859,000. The modest decline in the third quarter of 2016 compared with the second quarter of 2016 was primarily the result of a lower level of accretion of loan discount on acquired loans attributable to the River Valley merger transaction.
The tax equivalent net interest margin for the quarter ended September 30, 2016 was 3.75% compared with 3.86% in the second quarter of 2016 and 3.67% in the third quarter of 2015. The decline in the net interest margin during the third quarter of 2016 compared with the second quarter of 2016 was primarily attributable to a decline in the amount of accretion of loan discounts on acquired loans. Accretion of loan discounts on acquired loans contributed approximately 9 basis points to the net interest margin on an annualized basis in the third quarter of 2016, 23 basis points in the second quarter of 2016, and 4 basis points in the third quarter of 2015. The higher level of accretion in the second quarter of 2016 was largely attributable to pay-off activity on loans acquired in the River Valley transaction.
During the quarter ended September 30, 2016, the Company recorded no provision for loan loss compared to a provision of $350,000 during the second quarter of 2016 and a negative provision of $500,000 in the third quarter of 2015. The level of provision during all periods was done in accordance with the Company's standard methodology for determining the adequacy of its allowance for loan loss.
During the quarter ended September 30, 2016, non-interest income totaled $8,384,000, an increase of $329,000, or 4%, compared with the quarter ended June 30, 2016, and an increase of $627,000, or 8%, compared with the third quarter of 2015.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chairman & 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 12
Quarter Ended | Quarter Ended | Quarter Ended | ||||||||||
Non-interest Income | 9/30/2016 | 6/30/2016 | 9/30/2015 | |||||||||
(dollars in thousands) | ||||||||||||
Trust and Investment Product Fees | $ | 1,191 | $ | 1,223 | $ | 1,051 | ||||||
Service Charges on Deposit Accounts | 1,612 | 1,534 | 1,237 | |||||||||
Insurance Revenues | 1,661 | 1,605 | 1,752 | |||||||||
Company Owned Life Insurance | 247 | 247 | 205 | |||||||||
Interchange Fee Income | 688 | 599 | 547 | |||||||||
Other Operating Income | 1,523 | 996 | 2,134 | |||||||||
Subtotal | 6,922 | 6,204 | 6,926 | |||||||||
Net Gains on Loans | 1,004 | 883 | 831 | |||||||||
Net Gains on Securities | 458 | 968 | — | |||||||||
Total Non-interest Income | $ | 8,384 | $ | 8,055 | $ | 7,757 | ||||||
Service charges on deposit accounts increased $78,000, or 5%, during the quarter ended September 30, 2016, compared with the second quarter of 2016 and increased $375,000, or 30%, compared with the third quarter of 2015. The increase in the third quarter of 2016 compared with third quarter of 2015 was primarily attributable to the River Valley transaction.
Other operating income increased $527,000 during the quarter ended September 30, 2016 compared with the second quarter of 2016 and decreased $611,000 compared with the third quarter of 2015. The increase during the third quarter of 2016 compared with the second quarter of 2016 was primarily driven by increased fees associated with swap transactions with loan customers. The decline in the third quarter of 2016 compared with the third quarter of 2015 was attributable to the donation of a building and accompanying real estate to an economic development foundation in one of the Company's market areas that resulted in a net gain on the disposition of fixed assets of approximately $1.4 million partially mitigated by increased swap transaction fees with loan customers.
Net gains on sales of loans increased $121,000, or 14%, during the third quarter of 2016 compared with the second quarter of 2016 and increased $173,000, or 21%, compared with the third quarter of 2015. Loan sales totaled $34.4 million during the third quarter of 2016, compared with $36.8 million during the second quarter of 2016 and $39.1 million during the third quarter of 2015.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chairman & 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 12
The Company realized $458,000 in net gains on sales of securities during the third quarter of 2016 compared with $968,000 net gains on sales of securities during the second quarter of 2016 and no gains on the sale of securities in the third quarter of 2015.
During the quarter ended September 30, 2016, non-interest expense totaled $18,653,000, an increase of $314,000, or 2%, compared with the quarter ended June 30, 2016, and an increase of $1,687,000, or 10%, compared with the third quarter of 2015.
Quarter Ended | Quarter Ended | Quarter Ended | ||||||||||
Non-interest Expense | 9/30/2016 | 6/30/2016 | 9/30/2015 | |||||||||
(dollars in thousands) | ||||||||||||
Salaries and Employee Benefits | $ | 10,572 | $ | 10,184 | $ | 8,998 | ||||||
Occupancy, Furniture and Equipment Expense | 2,224 | 2,218 | 1,761 | |||||||||
FDIC Premiums | 373 | 339 | 284 | |||||||||
Data Processing Fees | 1,261 | 1,181 | 901 | |||||||||
Professional Fees | 777 | 780 | 787 | |||||||||
Advertising and Promotion | 687 | 629 | 2,198 | |||||||||
Intangible Amortization | 280 | 312 | 183 | |||||||||
Other Operating Expenses | 2,479 | 2,696 | 1,854 | |||||||||
Total Non-interest Expense | $ | 18,653 | $ | 18,339 | $ | 16,966 | ||||||
Salaries and benefits increased $388,000, or 4%, during the quarter ended September 30, 2016 compared with the second quarter of 2016 and increased $1,574,000, or 17%, compared with the third quarter of 2015. The increase in salaries and benefits during the third quarter of 2016 compared with the second quarter of 2016 was attributable to increased costs related to the Company's employee benefit plans including the short-term cash incentive compensation plan, employee stock purchase program and retirement plan matching contributions. The increase in salary and benefit costs during the third quarter of 2016 compared with the third quarter of 2015 was largely attributable to increased staffing levels that resulted from the River Valley acquisition.
Occupancy, furniture and equipment expense was flat for the quarter ended September 30, 2016 compared with the second quarter of 2016 and increased $463,000, or 26%, compared with the third quarter of 2015. This increase was predominantly related to the operation of the River Valley branch office facilities.
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chairman & 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 12
Data processing fees increased $80,000, or 7%, in the third quarter of 2016 compared with the second quarter of 2016 and increased $360,000, or 40%, compared with the third quarter of 2015. The increase during both periods was primarily related to charges related to the acquisition of River Valley and the on-going data processing for River Valley.
Advertising and promotion increased $58,000, or 9%, during the quarter ended September 30, 2016 compared with the second quarter of 2016 and decreased $1,511,000 compared with the third quarter of 2015. The primary driver of the decline in advertising and promotion during the third quarter of 2016 compared with the third quarter of 2015 was the recognition of a $1,750,000 contribution expense related to the donation of a building and accompanying real estate to an economic development foundation in one of the Company's market areas.
Other operating expenses declined $217,000, or 8%, in the third quarter of 2016 compared with the second quarter of 2016 and increased $625,000, or 34%, compared with the third quarter of 2015. The increase during the third quarter of 2016 compared with the third quarter of 2015 was largely attributable to the operating expenses associated with the River Valley branch network.
About German American
German American Bancorp, Inc., is a NASDAQ-traded (symbol: GABC) bank holding company based in Jasper, Indiana. German American, through its banking subsidiary German American Bancorp, operates 51 banking offices in 19 contiguous southern Indiana counties and one northern Kentucky county. The Company also owns an investment brokerage subsidiary (German American Investment Services, Inc.) and a full line property and casualty insurance agency (German American Insurance, Inc.).
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may be deemed “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 this press release. Factors that could cause actual experience to differ from the expectations expressed or 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; potential deterioration in general economic conditions, either nationally or locally, resulting in, among other things,
NEWS RELEASE
For additional information, contact:
Mark A Schroeder, Chairman & 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 12
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; potential cyber-attacks, information security breaches and other criminal activities; 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; the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends; and other risk factors expressly identified in the Company’s filings with the United States Securities and Exchange Commission. 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 | |||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | |||||||||
ASSETS | |||||||||||
Cash and Due from Banks | $ | 38,329 | $ | 36,027 | $ | 39,998 | |||||
Short-term Investments | 16,455 | 18,113 | 22,140 | ||||||||
Interest-bearing Time Deposits with Banks | 744 | 1,744 | 100 | ||||||||
Investment Securities | 732,911 | 719,916 | 625,239 | ||||||||
Loans Held-for-Sale | 12,967 | 5,135 | 6,410 | ||||||||
Loans, Net of Unearned Income | 2,002,380 | 1,960,555 | 1,513,580 | ||||||||
Allowance for Loan Losses | (15,154 | ) | (15,304 | ) | (14,770 | ) | |||||
Net Loans | 1,987,226 | 1,945,251 | 1,498,810 | ||||||||
Stock in FHLB and Other Restricted Stock | 13,048 | 13,048 | 8,167 | ||||||||
Premises and Equipment | 48,074 | 47,669 | 37,905 | ||||||||
Goodwill and Other Intangible Assets | 56,767 | 57,048 | 21,979 | ||||||||
Other Assets | 73,019 | 71,860 | 52,462 | ||||||||
TOTAL ASSETS | $ | 2,979,540 | $ | 2,915,811 | $ | 2,313,210 | |||||
LIABILITIES | |||||||||||
Non-interest-bearing Demand Deposits | $ | 534,620 | $ | 506,498 | $ | 418,947 | |||||
Interest-bearing Demand, Savings, and Money Market Accounts | 1,361,522 | 1,380,038 | 1,039,520 | ||||||||
Time Deposits | 433,521 | 390,836 | 345,368 | ||||||||
Total Deposits | 2,329,663 | 2,277,372 | 1,803,835 | ||||||||
Borrowings | 279,110 | 278,214 | 239,072 | ||||||||
Other Liabilities | 29,776 | 27,870 | 22,951 | ||||||||
TOTAL LIABILITIES | 2,638,549 | 2,583,456 | 2,065,858 | ||||||||
SHAREHOLDERS' EQUITY | |||||||||||
Common Stock and Surplus | 186,519 | 186,251 | 123,112 | ||||||||
Retained Earnings | 142,347 | 134,909 | 119,656 | ||||||||
Accumulated Other Comprehensive Income | 12,125 | 11,195 | 4,584 | ||||||||
TOTAL SHAREHOLDERS' EQUITY | 340,991 | 332,355 | 247,352 | ||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,979,540 | $ | 2,915,811 | $ | 2,313,210 | |||||
END OF PERIOD SHARES OUTSTANDING | 15,257,849 | 15,257,669 | 13,273,349 | ||||||||
TANGIBLE BOOK VALUE PER SHARE (1) | $ | 18.63 | $ | 18.04 | $ | 16.98 | |||||
(1) Tangible Book Value per Share is defined as Total Shareholders' Equity less Goodwill and Other Intangible Assets divided by End of Period Shares Outstanding. | |||||||||||
GERMAN AMERICAN BANCORP, INC. | ||||||||||||||||||||
(unaudited, dollars in thousands except per share data) | ||||||||||||||||||||
Consolidated Statements of Income | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, 2016 | June 30, 2016 | September 30, 2015 | September 30, 2016 | September 30, 2015 | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Interest and Fees on Loans | $ | 22,311 | $ | 22,670 | $ | 16,702 | $ | 63,645 | $ | 49,538 | ||||||||||
Interest on Short-term Investments and Time Deposits | 25 | 20 | 3 | 62 | 10 | |||||||||||||||
Interest and Dividends on Investment Securities | 4,398 | 4,160 | 3,714 | 12,557 | 11,049 | |||||||||||||||
TOTAL INTEREST INCOME | 26,734 | 26,850 | 20,419 | 76,264 | 60,597 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Interest on Deposits | 1,323 | 1,326 | 987 | 3,804 | 3,002 | |||||||||||||||
Interest on Borrowings | 851 | 853 | 573 | 2,445 | 1,481 | |||||||||||||||
TOTAL INTEREST EXPENSE | 2,174 | 2,179 | 1,560 | 6,249 | 4,483 | |||||||||||||||
NET INTEREST INCOME | 24,560 | 24,671 | 18,859 | 70,015 | 56,114 | |||||||||||||||
Provision for Loan Losses | — | 350 | (500 | ) | 1,200 | — | ||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 24,560 | 24,321 | 19,359 | 68,815 | 56,114 | |||||||||||||||
NON-INTEREST INCOME | ||||||||||||||||||||
Net Gain on Sales of Loans | 1,004 | 883 | 831 | 2,607 | 2,364 | |||||||||||||||
Net Gain on Securities | 458 | 968 | — | 1,426 | 725 | |||||||||||||||
Other Non-interest Income | 6,922 | 6,204 | 6,926 | 19,623 | 17,931 | |||||||||||||||
TOTAL NON-INTEREST INCOME | 8,384 | 8,055 | 7,757 | 23,656 | 21,020 | |||||||||||||||
NON-INTEREST EXPENSE | ||||||||||||||||||||
Salaries and Benefits | 10,572 | 10,184 | 8,998 | 32,357 | 26,082 | |||||||||||||||
Other Non-interest Expenses | 8,081 | 8,155 | 7,968 | 24,875 | 20,032 | |||||||||||||||
TOTAL NON-INTEREST EXPENSE | 18,653 | 18,339 | 16,966 | 57,232 | 46,114 | |||||||||||||||
Income before Income Taxes | 14,291 | 14,037 | 10,150 | 35,239 | 31,020 | |||||||||||||||
Income Tax Expense | 4,106 | 4,249 | 2,429 | 10,120 | 8,668 | |||||||||||||||
NET INCOME | $ | 10,185 | $ | 9,788 | $ | 7,721 | $ | 25,119 | $ | 22,352 | ||||||||||
BASIC EARNINGS PER SHARE | $ | 0.67 | $ | 0.64 | $ | 0.58 | $ | 1.70 | $ | 1.69 | ||||||||||
DILUTED EARNINGS PER SHARE | $ | 0.67 | $ | 0.64 | $ | 0.58 | $ | 1.70 | $ | 1.69 | ||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING | 15,257,814 | 15,256,019 | 13,265,893 | 14,814,520 | 13,247,954 | |||||||||||||||
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING | 15,257,814 | 15,257,219 | 13,273,512 | 14,816,279 | 13,255,510 | |||||||||||||||
GERMAN AMERICAN BANCORP, INC. | ||||||||||||||||||||
(unaudited, dollars in thousands except per share data) | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||||||
EARNINGS PERFORMANCE RATIOS | ||||||||||||||||||||
Annualized Return on Average Assets | 1.38 | % | 1.36 | % | 1.36 | % | 1.20 | % | 1.33 | % | ||||||||||
Annualized Return on Average Equity | 12.07 | % | 12.02 | % | 12.75 | % | 10.60 | % | 12.52 | % | ||||||||||
Net Interest Margin | 3.75 | % | 3.86 | % | 3.67 | % | 3.75 | % | 3.70 | % | ||||||||||
Efficiency Ratio (1) | 54.64 | % | 54.17 | % | 61.61 | % | 59.00 | % | 57.87 | % | ||||||||||
Net Overhead Expense to Average Earning Assets (2) | 1.50 | % | 1.53 | % | 1.72 | % | 1.71 | % | 1.58 | % | ||||||||||
ASSET QUALITY RATIOS | ||||||||||||||||||||
Annualized Net Charge-offs to Average Loans | 0.03 | % | 0.04 | % | — | % | 0.03 | % | 0.01 | % | ||||||||||
Allowance for Loan Losses to Period End Loans | 0.76 | % | 0.78 | % | 0.98 | % | ||||||||||||||
Non-performing Assets to Period End Assets | 0.18 | % | 0.33 | % | 0.24 | % | ||||||||||||||
Non-performing Loans to Period End Loans | 0.25 | % | 0.48 | % | 0.35 | % | ||||||||||||||
Loans 30-89 Days Past Due to Period End Loans | 0.39 | % | 0.45 | % | 0.24 | % | ||||||||||||||
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA | ||||||||||||||||||||
Average Assets | $ | 2,943,564 | $ | 2,885,165 | $ | 2,274,034 | $ | 2,797,677 | $ | 2,247,395 | ||||||||||
Average Earning Assets | $ | 2,739,869 | $ | 2,684,386 | $ | 2,144,397 | $ | 2,612,284 | $ | 2,116,893 | ||||||||||
Average Total Loans | $ | 1,982,291 | $ | 1,935,246 | $ | 1,492,772 | $ | 1,871,134 | $ | 1,464,632 | ||||||||||
Average Demand Deposits | $ | 522,994 | $ | 502,070 | $ | 428,380 | $ | 497,620 | $ | 425,379 | ||||||||||
Average Interest Bearing Liabilities | $ | 2,054,987 | $ | 2,031,798 | $ | 1,583,719 | $ | 1,958,222 | $ | 1,562,689 | ||||||||||
Average Equity | $ | 337,449 | $ | 325,754 | $ | 242,307 | $ | 315,895 | $ | 238,104 | ||||||||||
Period End Non-performing Assets (3) | $ | 5,452 | $ | 9,734 | $ | 5,459 | ||||||||||||||
Period End Non-performing Loans (4) | $ | 5,097 | $ | 9,318 | $ | 5,336 | ||||||||||||||
Period End Loans 30-89 Days Past Due (5) | $ | 7,776 | $ | 8,764 | $ | 3,634 | ||||||||||||||
Tax Equivalent Net Interest Income | $ | 25,752 | $ | 25,800 | $ | 19,780 | $ | 73,354 | $ | 58,662 | ||||||||||
Net Charge-offs during Period | $ | 150 | $ | 207 | $ | (12 | ) | $ | 484 | $ | 159 | |||||||||
(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. | |||||||||||||||||||