German American Bancorp, Inc. (NASDAQ: GABC) reported record
quarterly earnings of $15.3 million, or $0.61 per share, for the
quarter ending on June 30, 2019. This level of quarterly
earnings performance was an increase of 27%, on a per share basis,
compared with the second quarter 2018 net income of $11.1 million,
or $0.48 per share. The current quarter earnings also compared
favorably with the first quarter 2019 net income of $15.1 million,
or $0.60 per share.
These quarterly comparisons are inclusive of the
Company’s 2018 five branch acquisition in the greater Columbus,
Indiana market area on May 18, 2018 and its acquisition of First
Security, Inc. of Owensboro, Kentucky on October 15, 2018.
The Company had also previously announced the completion of its
acquisition of Citizens First Corporation of Bowling Green,
Kentucky as of July 1, 2019. Acquisition-related expenses
from these transactions were included in the expenses in each of
the quarterly period comparisons.
On a linked-quarter basis, the record second
quarter 2019 earnings were attributable to a variety of factors,
including an increased level of net interest income, improved
levels of non-interest income within a majority of the categories
of fee income and additional net gains on the sale of loans and
securities. As compared to the first quarter of 2019, the
Company also benefited from a reduction in the level of provision
for loan loss resulting from an improved level of asset
quality. Additionally, operating expenses were lower in the
current quarter due to reduced levels of salaries and benefits
expense and professional fees during the current quarter.
Other factors offsetting a portion of the
positive quarter-over-quarter comparison, on a linked-quarter
basis, included the recording of $1.4 million in insurance
contingency revenue, $554,000 in bank-owned life insurance
benefits, and a $262,000 gain on the sale of a former branch
facility during the first quarter of 2019.
The Company also recorded strong deposit growth
during the second quarter, as end of period total deposits grew by
approximately $63.7 million, or approximately 8% on a
linked-quarter annualized basis, and total non-maturity transaction
deposits grew by approximately $100.2 million, or 16% on a
linked-quarter annualized basis. Additionally, the Company
experienced a strong level of loan originations during the current
quarter, which was materially offset by a continued elevated level
of loan pay-offs, resulting in a modest increase of $8.3
million, or 1%, on a linked-quarter annualized basis, in end
of period total loans.
Commenting on the Company’s performance, Mark A.
Schroeder, German American’s Chairman & CEO, stated, "We’re
pleased with the extremely strong start we experienced during the
first half of this year, in terms of record earnings, exceptional
deposit growth and the exceptionally strong loan pipelines we
continue to experience throughout our footprint. Even though
the current economic recovery is at a historic length, the economic
strength and vitality in each of the markets we serve continues to
be impressive. Based on these factors, we are encouraged
about our ability to continue the level of exceptional performance
we’ve been able to deliver during the current quarter, year-to-date
and over the course of the past decade.”
The Company also announced its Board of
Directors declared a regular quarterly cash dividend of $0.17 per
share, which will be payable on August 20, 2019 to shareholders of
record as of August 10, 2019.
Balance Sheet Highlights
The Company completed a five-branch acquisition
of locations of First Financial Bancorp (formerly branch locations
of Mainsource Financial Group, Inc. prior to its merger with First
Financial Bancorp) on May 18, 2018. Four of the branches are
located in Columbus, Indiana, and one in Greensburg, Indiana.
In addition, on October 15, 2018, the Company completed its
acquisition of First Security, Inc. ("First Security") and its
subsidiary bank, First Security Bank, Inc. First Security was
based in Owensboro, Kentucky, and operated 11 retail banking
offices in Owensboro, Bowling Green, Franklin and Lexington,
Kentucky and in Evansville and Newburgh, Indiana.
Total assets for the Company totaled $3.971
billion at June 30, 2019, representing an increase of $75.2
million, or 8% on an annualized basis, compared with March 31, 2019
and an increase of $626.2 million, or 19%, compared with June 30,
2018. The increase in total assets as of June 30, 2019
compared to a year ago was driven largely by the acquisition of
First Security and the five-branch network in the Columbus and
Greensburg, Indiana markets, as well as organic loan growth.
June 30, 2019 total loans increased $8.3
million, or 1% on an annualized basis, compared with March 31, 2019
and increased $398.8 million, or 17%, compared with June 30,
2018.
The modest increase during the second quarter of
2019 was driven by a seasonal increase in agricultural loans of
approximately $16.1 million, or 19% on an annualized basis, which
was partially mitigated by a decline in retail loans of $7.7
million, or 5% on an annualized basis, driven primarily by a
decline in residential real estate loans.
| |
|
|
|
|
|
|
| End of Period Loan
Balances |
|
6/30/2019 |
|
3/31/2019 |
|
6/30/2018 |
| (dollars in
thousands) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Commercial & Industrial
Loans |
|
$ |
554,290 |
|
|
$ |
555,967 |
|
|
$ |
518,299 |
|
| Commercial Real Estate
Loans |
|
1,213,579 |
|
|
1,212,090 |
|
|
986,486 |
|
| Agricultural Loans |
|
364,116 |
|
|
347,999 |
|
|
352,308 |
|
| Consumer Loans |
|
280,963 |
|
|
281,724 |
|
|
241,315 |
|
| Residential Mortgage
Loans |
|
307,726 |
|
|
314,634 |
|
|
223,437 |
|
| |
|
$ |
2,720,674 |
|
|
$ |
2,712,414 |
|
|
$ |
2,321,845 |
|
| |
|
|
|
|
|
|
Non-performing assets totaled $12.5 million at
June 30, 2019 compared to $13.1 million at March 31, 2019 and $9.5
million at June 30, 2018. Non-performing assets represented
0.32% of total assets at June 30, 2019, 0.34% at March 31,
2019, and 0.28% at June 30, 2018. Non-performing loans
totaled $11.9 million at June 30, 2019 compared to $12.4 million at
March 31, 2019 and $9.5 million at June 30, 2018.
Non-performing loans represented 0.44% of total loans at June 30,
2019 compared to 0.46% at March 31, 2019 and 0.41% at June 30,
2018.
| |
|
|
|
|
|
| Non-performing
Assets |
|
|
|
|
|
| (dollars in
thousands) |
|
|
|
|
|
| |
6/30/2019 |
|
3/31/2019 |
|
6/30/2018 |
| Non-Accrual Loans |
$ |
10,929 |
|
|
$ |
12,036 |
|
|
$ |
8,953 |
|
| Past Due Loans (90 days or
more) |
959 |
|
|
393 |
|
|
534 |
|
|
Total Non-Performing Loans |
11,888 |
|
|
12,429 |
|
|
9,487 |
|
| Other Real Estate |
635 |
|
|
685 |
|
|
40 |
|
|
Total Non-Performing Assets |
$ |
12,523 |
|
|
$ |
13,114 |
|
|
$ |
9,527 |
|
| |
|
|
|
|
|
| Restructured Loans |
$ |
118 |
|
|
$ |
119 |
|
|
$ |
123 |
|
| |
|
|
|
|
|
The Company’s allowance for loan losses totaled
$16.2 million at June 30, 2019 compared to $16.2 million at March
31, 2019 and $15.6 million at June 30, 2018. The allowance
for loan losses represented 0.60% of period-end loans at June 30,
2019 compared with 0.60% of period-end loans at March 31, 2019 and
0.67% of period-end loans at June 30, 2018. From time to
time, the Company has acquired loans through bank and branch
acquisitions with the most recent (reflected in actual results)
being the First Security acquisition during the fourth quarter of
2018 and a five-branch acquisition in the second quarter of
2018. 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 net discount on acquired
loans of $17.1 million at June 30, 2019, $18.2 million at March 31,
2019 and $9.6 million at June 30, 2018.
June 30, 2019 total deposits increased $63.7
million, or 8% on an annualized basis, compared with March 31, 2019
and increased $527.4 million, or 20%, compared with June 30,
2018. The increase in total deposits in the second quarter of
2019, compared with the first quarter of 2019, was largely related
to seasonal increases in public fund operating accounts.
| |
|
|
|
|
|
|
| End of Period Deposit
Balances |
|
6/30/2019 |
|
3/31/2019 |
|
6/30/2018 |
| (dollars in
thousands) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Non-interest-bearing Demand
Deposits |
|
$ |
725,367 |
|
|
$ |
723,995 |
|
|
$ |
629,724 |
|
| IB Demand, Savings, and MMDA
Accounts |
|
1,805,694 |
|
|
1,706,913 |
|
|
1,611,583 |
|
| Time Deposits <
$100,000 |
|
248,744 |
|
|
248,686 |
|
|
190,179 |
|
| Time Deposits >
$100,000 |
|
349,027 |
|
|
385,576 |
|
|
169,954 |
|
| |
|
$ |
3,128,832 |
|
|
$ |
3,065,170 |
|
|
$ |
2,601,440 |
|
| |
|
|
|
|
|
|
Results of Operations Highlights – Quarter ended June
30, 2019
Net income for the quarter ended June 30, 2019
totaled $15,271,000, or $0.61 per share, an increase of 2% on a per
share basis compared with the first quarter 2019 net income of
$15,067,000, or $0.60 per share, and an increase of 27% on a
per share basis compared with the second quarter 2018 net income of
$11,097,000, or $0.48 per share. The change in net income
during the second quarter of 2019, compared with the second quarter
of 2018, was impacted by the completed acquisition activity during
2018. A detailed analysis of the factors impacting second
quarter 2019 income and expenses, as compared to first quarter
2019, is included in the remaining discussion.
Net income for each quarter presented was
impacted by merger and acquisition activity during 2018 and
2019. The second quarter of 2019 results of operations
included acquisition-related expenses of approximately $428,000
($369,000 or $0.01 per share, on an after tax basis), while the
first quarter of 2019 results of operations included
acquisition-related expenses of approximately $544,000 ($432,000 or
$0.02 per share, on an after tax basis) and the second quarter of
2018 included approximately $903,000 ($727,000 or $0.03 per share
on an after tax basis).
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Summary Average
Balance Sheet |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Tax-equivalent basis /
dollars in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
| |
|
June 30, 2019 |
|
March 31, 2019 |
|
June 30, 2018 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
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 |
|
$ |
21,257 |
|
|
$ |
85 |
|
|
1.62 |
% |
|
$ |
24,538 |
|
|
$ |
141 |
|
|
2.32 |
% |
|
$ |
12,939 |
|
|
$ |
54 |
|
|
1.68 |
% |
| Securities |
|
842,282 |
|
|
6,529 |
|
|
3.10 |
% |
|
825,625 |
|
|
6,549 |
|
|
3.17 |
% |
|
751,367 |
|
|
5,758 |
|
|
3.07 |
% |
| Loans and Leases |
|
2,721,630 |
|
|
35,135 |
|
|
5.18 |
% |
|
2,718,808 |
|
|
35,207 |
|
|
5.24 |
% |
|
2,229,972 |
|
|
26,394 |
|
|
4.75 |
% |
| Total Interest Earning
Assets |
|
$ |
3,585,169 |
|
|
$ |
41,749 |
|
|
4.67 |
% |
|
$ |
3,568,971 |
|
|
$ |
41,897 |
|
|
4.74 |
% |
|
$ |
2,994,278 |
|
|
$ |
32,206 |
|
|
4.31 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Demand Deposit Accounts |
|
$ |
715,681 |
|
|
|
|
|
|
|
|
|
$ |
691,107 |
|
|
|
|
|
|
|
|
|
$ |
625,158 |
|
|
|
|
|
|
|
|
| IB Demand, Savings, and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MMDA Accounts |
|
$ |
1,797,228 |
|
|
$ |
2,945 |
|
|
0.66 |
% |
|
$ |
1,731,118 |
|
|
$ |
2,695 |
|
|
0.63 |
% |
|
$ |
1,560,838 |
|
|
$ |
1,597 |
|
|
0.41 |
% |
| Time Deposits |
|
631,174 |
|
|
2,814 |
|
|
1.79 |
% |
|
646,726 |
|
|
2,721 |
|
|
1.71 |
% |
|
417,585 |
|
|
1,251 |
|
|
1.20 |
% |
| FHLB Advances and Other
Borrowings |
|
246,229 |
|
|
1,636 |
|
|
2.67 |
% |
|
330,463 |
|
|
2,182 |
|
|
2.68 |
% |
|
238,775 |
|
|
1,216 |
|
|
2.04 |
% |
| Total Interest-Bearing
Liabilities |
|
$ |
2,674,632 |
|
|
$ |
7,395 |
|
|
1.11 |
% |
|
$ |
2,708,307 |
|
|
$ |
7,598 |
|
|
1.14 |
% |
|
$ |
2,217,198 |
|
|
$ |
4,064 |
|
|
0.74 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of Funds |
|
|
|
|
|
0.83 |
% |
|
|
|
|
|
0.86 |
% |
|
|
|
|
|
0.54 |
% |
| Net Interest Income |
|
|
|
$ |
34,354 |
|
|
|
|
|
|
$ |
34,299 |
|
|
|
|
|
|
$ |
28,142 |
|
|
|
| Net Interest Margin |
|
|
|
|
|
3.84 |
% |
|
|
|
|
|
3.88 |
% |
|
|
|
|
|
3.77 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
During the quarter ended June 30, 2019, net
interest income totaled $33,641,000, which was relatively flat to
the quarter ended March 31, 2019 net interest income of
$33,591,000. The increased level of net interest income
during the second quarter of 2019 compared with the first quarter
of 2019 was driven primarily by a modestly higher level of average
earning assets combined with an additional day during the second
quarter partially mitigated by a modest decline in the stated tax
equivalent net interest margin.
The tax equivalent net interest margin for the
quarter ended June 30, 2019 was 3.84% compared with 3.88% in the
first quarter of 2019. Accretion of loan discounts on
acquired loans contributed approximately 12 basis points to the net
interest margin on an annualized basis in the second quarter of
2019 and 16 basis points in the first quarter of 2019.
During the quarter ended June 30, 2019, the
Company recorded a provision for loan loss of $250,000 compared
with $675,000 in the first quarter of 2019. The 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 June 30, 2019,
non-interest income totaled $10,509,000, a decline of $1,149,000,
or 10%, compared with the quarter ended March 31, 2019.
| |
|
|
|
|
|
|
| |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
| Non-interest
Income |
|
6/30/2019 |
|
3/31/2019 |
|
6/30/2018 |
| (dollars in
thousands) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Trust and Investment Product Fees |
|
$ |
1,913 |
|
|
$ |
1,567 |
|
|
$ |
1,677 |
|
| Service Charges on Deposit
Accounts |
|
2,024 |
|
|
1,900 |
|
|
1,643 |
|
| Insurance Revenues |
|
1,929 |
|
|
3,205 |
|
|
1,696 |
|
| Company Owned Life
Insurance |
|
304 |
|
|
884 |
|
|
260 |
|
| Interchange Fee Income |
|
2,332 |
|
|
2,095 |
|
|
1,714 |
|
| Other Operating Income |
|
461 |
|
|
871 |
|
|
913 |
|
|
Subtotal |
|
8,963 |
|
|
10,522 |
|
|
7,903 |
|
| Net Gains on Loans |
|
1,030 |
|
|
981 |
|
|
905 |
|
| Net Gains on Securities |
|
516 |
|
|
155 |
|
|
74 |
|
| Total Non-interest
Income |
|
$ |
10,509 |
|
|
$ |
11,658 |
|
|
$ |
8,882 |
|
| |
|
|
|
|
|
|
Trust and investment product fees increased
$346,000, or 22%, during the second quarter of 2019 compared with
the first quarter of 2019. The increase during the second
quarter of 2019 was largely attributable to increased assets under
management and increased activity in the Company's wealth
management group.
Insurance revenues declined $1,276,000, or 40%,
during the quarter ended June 30, 2019, compared with the first
quarter of 2019. The decline during the second quarter of
2019 compared with the first quarter of 2019 was primarily due to
contingency revenue. Contingency revenue during the first
quarter of 2019 totaled $1,375,000 compared with no contingency
revenue during the second quarter of 2019. The fluctuation in
contingency revenue is a normal course of business variance and is
reflective of claims and loss experience with insurance carriers
that the Company represents through its property and casualty
insurance agency. Typically, the majority of contingency
revenue is recognized during the first quarter of the year.
Company owned life insurance revenue declined
$580,000, or 66%, during the quarter ended June 30, 2019, compared
with the first quarter of 2019. The increase was largely related to
death benefits of $554,000 received from life insurance policies
during the first quarter of 2019.
Interchange fees increased $237,000, or 11%,
during the second quarter of 2019 compared with the first quarter
of 2019. The increase during the second quarter of 2019
compared with the first quarter of 2019 was largely attributable to
increased card utilization by customers.
Other operating income declined $410,000, or
47%, during the quarter ended June 30, 2019 compared with the first
quarter of 2019. The decline during the second quarter of
2019 compared with the first quarter of 2019 was largely
attributable to a gain realized on the sale of a former branch
facility of $262,000 during the first quarter of 2019.
The Company realized $516,000 in gains on sales of securities
during the second quarter of 2019 compared with $155,000 during the
first quarter of 2019.
During the quarter ended June 30, 2019,
non-interest expense totaled $25,618,000, a decline of $1,141,000,
or 4%, compared with the quarter ended March 31, 2019. The
second quarter of 2019 included acquisition-related expenses of
$428,000 while the first quarter of 2019 included
acquisition-related expenses of approximately $544,000.
| |
|
|
|
|
|
|
| |
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
| Non-interest
Expense |
|
6/30/2019 |
|
3/31/2019 |
|
6/30/2018 |
| (dollars in
thousands) |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
Salaries and Employee Benefits |
|
$ |
14,117 |
|
|
$ |
15,044 |
|
|
$ |
12,019 |
|
| Occupancy, Furniture and
Equipment Expense |
|
3,212 |
|
|
3,219 |
|
|
2,527 |
|
| FDIC Premiums |
|
245 |
|
|
288 |
|
|
238 |
|
| Data Processing Fees |
|
1,803 |
|
|
1,583 |
|
|
1,398 |
|
| Professional Fees |
|
1,174 |
|
|
1,327 |
|
|
1,361 |
|
| Advertising and Promotion |
|
936 |
|
|
870 |
|
|
857 |
|
| Intangible Amortization |
|
802 |
|
|
843 |
|
|
306 |
|
| Other Operating Expenses |
|
3,329 |
|
|
3,585 |
|
|
3,002 |
|
| Total Non-interest
Expense |
|
$ |
25,618 |
|
|
$ |
26,759 |
|
|
$ |
21,708 |
|
| |
|
|
|
|
|
|
Salaries and benefits declined $927,000, or 6%,
during the quarter ended June 30, 2019 compared with the first
quarter of 2019. The decline in salaries and benefits during
the second quarter of 2019 compared with the first quarter of 2019
was primarily attributable to a reduced level of incentive
compensation expense and a reduced level of other employee benefit
expense.
Data processing fees increased $220,000, or 14%,
during the second quarter of 2019 compared with the first quarter
of 2019. The increase during the second quarter of 2019
compared with the first quarter of 2019 was driven by
acquisition-related costs which totaled approximately $214,000
during the second quarter of 2019.
Professional fees declined $153,000, or 12%,
during the second quarter of 2019 compared with the first quarter
of 2019. The decline during the second quarter of 2019
compared to the first quarter of 2019 was due in large part to a
decline in professional fees related to merger and acquisition
activity partially offset by an increase in other professional fees
primarily associated with the Company's annual shareholders'
meeting. Merger and acquisition-related professional fees
totaled approximately $205,000 during the second quarter of 2019
compared with $508,000 in the first quarter of 2019.
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
Bank, operates 75 banking offices in 20 contiguous southern Indiana
counties, six counties in Kentucky and one county in
Tennessee. 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,
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 (the
"Dodd-Frank Act") and the Federal Deposit Insurance Act and other
possible legislative and regulatory actions and reforms; impacts
resulting from possible amendments or revisions to the Dodd-Frank
Act and the regulations promulgated thereunder, or to Consumer
Financial Protection Bureau rules and regulations; 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 |
|
|
|
|
|
|
|
| |
June 30, 2019 |
|
March 31, 2019 |
|
June 30, 2018 |
| ASSETS |
|
|
|
|
|
|
Cash and Due from Banks |
$ |
48,634 |
|
|
$ |
45,038 |
|
|
$ |
60,244 |
|
|
Short-term Investments |
41,623 |
|
|
14,740 |
|
|
11,038 |
|
|
Investment Securities |
841,045 |
|
|
824,950 |
|
|
739,834 |
|
|
|
|
|
|
|
|
|
Loans Held-for-Sale |
14,184 |
|
|
8,586 |
|
|
9,552 |
|
|
|
|
|
|
|
|
|
Loans, Net of Unearned Income |
2,717,028 |
|
|
2,708,832 |
|
|
2,318,510 |
|
|
Allowance for Loan Losses |
(16,239 |
) |
|
(16,243 |
) |
|
(15,637 |
) |
|
Net Loans |
2,700,789 |
|
|
2,692,589 |
|
|
2,302,873 |
|
| |
|
|
|
|
|
|
Stock in FHLB and Other Restricted Stock |
13,048 |
|
|
13,048 |
|
|
13,048 |
|
|
Premises and Equipment |
89,413 |
|
|
89,600 |
|
|
66,641 |
|
|
Goodwill and Other Intangible Assets |
113,309 |
|
|
112,920 |
|
|
65,978 |
|
|
Other Assets |
108,694 |
|
|
94,053 |
|
|
75,336 |
|
|
TOTAL ASSETS |
$ |
3,970,739 |
|
|
$ |
3,895,524 |
|
|
$ |
3,344,544 |
|
| |
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
Non-interest-bearing Demand Deposits |
$ |
725,367 |
|
|
$ |
723,995 |
|
|
$ |
629,724 |
|
|
Interest-bearing Demand, Savings, and Money Market Accounts |
1,805,694 |
|
|
1,706,913 |
|
|
1,611,583 |
|
|
Time Deposits |
597,771 |
|
|
634,262 |
|
|
360,133 |
|
|
Total Deposits |
3,128,832 |
|
|
3,065,170 |
|
|
2,601,440 |
|
| |
|
|
|
|
|
|
Borrowings |
305,940 |
|
|
317,480 |
|
|
354,803 |
|
|
Other Liabilities |
36,556 |
|
|
33,687 |
|
|
17,761 |
|
|
TOTAL LIABILITIES |
3,471,328 |
|
|
3,416,337 |
|
|
2,974,004 |
|
| |
|
|
|
|
|
| SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
Common Stock and Surplus |
254,935 |
|
|
254,625 |
|
|
188,885 |
|
|
Retained Earnings |
233,269 |
|
|
222,246 |
|
|
194,994 |
|
|
Accumulated Other Comprehensive Income (Loss) |
11,207 |
|
|
2,316 |
|
|
(13,339 |
) |
| SHAREHOLDERS'
EQUITY |
499,411 |
|
|
479,187 |
|
|
370,540 |
|
| |
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
3,970,739 |
|
|
$ |
3,895,524 |
|
|
$ |
3,344,544 |
|
| |
|
|
|
|
|
| END OF PERIOD SHARES
OUTSTANDING |
24,992,238 |
|
|
24,992,238 |
|
|
22,967,898 |
|
| |
|
|
|
|
|
| TANGIBLE BOOK VALUE
PER SHARE (1) |
$ |
15.45 |
|
|
$ |
14.66 |
|
|
$ |
13.26 |
|
| |
|
|
|
|
|
| |
| (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 |
|
Six Months Ended |
| |
|
June 30, 2019 |
|
March 31, 2019 |
|
June 30, 2018 |
|
June 30, 2019 |
|
June 30, 2018 |
| INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
Interest and Fees on Loans |
$ |
35,046 |
|
|
$ |
35,119 |
|
|
$ |
26,308 |
|
|
$ |
70,165 |
|
|
$ |
50,258 |
|
|
Interest on Short-term Investments |
85 |
|
|
141 |
|
|
54 |
|
|
226 |
|
|
110 |
|
|
Interest and Dividends on Investment Securities |
5,905 |
|
|
5,929 |
|
|
5,171 |
|
|
11,834 |
|
|
10,310 |
|
|
TOTAL INTEREST INCOME |
41,036 |
|
|
41,189 |
|
|
31,533 |
|
|
82,225 |
|
|
60,678 |
|
| |
|
|
|
|
|
|
|
|
|
|
| INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
Interest on Deposits |
5,759 |
|
|
5,416 |
|
|
2,848 |
|
|
11,175 |
|
|
5,131 |
|
|
Interest on Borrowings |
1,636 |
|
|
2,182 |
|
|
1,216 |
|
|
3,818 |
|
|
2,468 |
|
|
TOTAL INTEREST EXPENSE |
7,395 |
|
|
7,598 |
|
|
4,064 |
|
|
14,993 |
|
|
7,599 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
NET INTEREST INCOME |
33,641 |
|
|
33,591 |
|
|
27,469 |
|
|
67,232 |
|
|
53,079 |
|
|
Provision for Loan Losses |
250 |
|
|
675 |
|
|
1,220 |
|
|
925 |
|
|
1,570 |
|
|
NET INTEREST INCOME AFTER PROVISION FOR LOAN
LOSSES |
33,391 |
|
|
32,916 |
|
|
26,249 |
|
|
66,307 |
|
|
51,509 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
Net Gain on Sales of Loans |
1,030 |
|
|
981 |
|
|
905 |
|
|
2,011 |
|
|
1,555 |
|
|
Net Gain on Securities |
516 |
|
|
155 |
|
|
74 |
|
|
671 |
|
|
344 |
|
|
Other Non-interest Income |
8,963 |
|
|
10,522 |
|
|
7,903 |
|
|
19,485 |
|
|
16,475 |
|
|
TOTAL NON-INTEREST INCOME |
10,509 |
|
|
11,658 |
|
|
8,882 |
|
|
22,167 |
|
|
18,374 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
Salaries and Benefits |
14,117 |
|
|
15,044 |
|
|
12,019 |
|
|
29,161 |
|
|
24,145 |
|
|
Other Non-interest Expenses |
11,501 |
|
|
11,715 |
|
|
9,689 |
|
|
23,216 |
|
|
18,018 |
|
|
TOTAL NON-INTEREST EXPENSE |
25,618 |
|
|
26,759 |
|
|
21,708 |
|
|
52,377 |
|
|
42,163 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Income before Income Taxes |
18,282 |
|
|
17,815 |
|
|
13,423 |
|
|
36,097 |
|
|
27,720 |
|
|
Income Tax Expense |
3,011 |
|
|
2,748 |
|
|
2,326 |
|
|
5,759 |
|
|
4,810 |
|
| |
|
|
|
|
|
|
|
|
|
|
| NET
INCOME |
$ |
15,271 |
|
|
$ |
15,067 |
|
|
$ |
11,097 |
|
|
$ |
30,338 |
|
|
$ |
22,910 |
|
| |
|
|
|
|
|
|
|
|
|
|
| BASIC
EARNINGS PER SHARE |
$ |
0.61 |
|
|
$ |
0.60 |
|
|
$ |
0.48 |
|
|
$ |
1.21 |
|
|
$ |
1.00 |
|
| DILUTED
EARNINGS PER SHARE |
$ |
0.61 |
|
|
$ |
0.60 |
|
|
$ |
0.48 |
|
|
$ |
1.21 |
|
|
$ |
1.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
| WEIGHTED
AVERAGE SHARES OUTSTANDING |
24,992,238 |
|
|
24,971,863 |
|
|
22,968,178 |
|
|
24,982,107 |
|
|
22,954,367 |
|
| DILUTED
WEIGHTED AVERAGE SHARES OUTSTANDING |
24,992,238 |
|
|
24,971,863 |
|
|
22,968,178 |
|
|
24,982,107 |
|
|
22,954,367 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
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, |
| |
|
|
2019 |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
| EARNINGS
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
| |
Annualized Return on Average
Assets |
|
1.56 |
% |
|
1.55 |
% |
|
1.38 |
% |
|
1.56 |
% |
|
1.44 |
% |
| |
Annualized Return on Average
Equity |
|
12.60 |
% |
|
12.98 |
% |
|
12.15 |
% |
|
12.78 |
% |
|
12.57 |
% |
| |
Net Interest Margin |
|
3.84 |
% |
|
3.88 |
% |
|
3.77 |
% |
|
3.86 |
% |
|
3.71 |
% |
| |
Efficiency Ratio (1) |
|
57.10 |
% |
|
58.23 |
% |
|
58.63 |
% |
|
57.67 |
% |
|
57.93 |
% |
| |
Net Overhead Expense to
Average Earning Assets (2) |
|
1.69 |
% |
|
1.69 |
% |
|
1.71 |
% |
|
1.69 |
% |
|
1.61 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ASSET
QUALITY RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Annualized Net Charge-offs to
Average Loans |
|
0.04 |
% |
|
0.04 |
% |
|
0.01 |
% |
|
0.04 |
% |
|
0.15 |
% |
| |
Allowance for Loan Losses to
Period End Loans |
|
0.60 |
% |
|
0.60 |
% |
|
0.67 |
% |
|
|
|
|
| |
Non-performing Assets to
Period End Assets |
|
0.32 |
% |
|
0.34 |
% |
|
0.28 |
% |
|
|
|
|
| |
Non-performing Loans to Period
End Loans |
|
0.44 |
% |
|
0.46 |
% |
|
0.41 |
% |
|
|
|
|
| |
Loans 30-89 Days Past Due to
Period End Loans |
|
0.39 |
% |
|
0.45 |
% |
|
0.52 |
% |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SELECTED
BALANCE SHEET & OTHER FINANCIAL DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Average Assets |
|
$ |
3,908,669 |
|
|
$ |
3,886,723 |
|
|
$ |
3,226,091 |
|
|
$ |
3,897,757 |
|
|
$ |
3,173,821 |
|
| |
Average Earning Assets |
|
$ |
3,585,169 |
|
|
$ |
3,568,971 |
|
|
$ |
2,994,278 |
|
|
$ |
3,577,115 |
|
|
$ |
2,948,319 |
|
| |
Average Total Loans |
|
$ |
2,721,630 |
|
|
$ |
2,718,808 |
|
|
$ |
2,229,972 |
|
|
$ |
2,720,227 |
|
|
$ |
2,185,087 |
|
| |
Average Demand Deposits |
|
$ |
715,681 |
|
|
$ |
691,107 |
|
|
$ |
625,158 |
|
|
$ |
703,462 |
|
|
$ |
605,405 |
|
| |
Average Interest Bearing
Liabilities |
|
$ |
2,674,632 |
|
|
$ |
2,708,307 |
|
|
$ |
2,217,198 |
|
|
$ |
2,691,376 |
|
|
$ |
2,184,055 |
|
| |
Average Equity |
|
$ |
484,891 |
|
|
$ |
464,234 |
|
|
$ |
365,197 |
|
|
$ |
474,619 |
|
|
$ |
364,392 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Period End Non-performing
Assets (3) |
|
$ |
12,523 |
|
|
$ |
13,114 |
|
|
$ |
9,527 |
|
|
|
|
|
| |
Period End Non-performing
Loans (4) |
|
$ |
11,888 |
|
|
$ |
12,429 |
|
|
$ |
9,487 |
|
|
|
|
|
| |
Period End Loans 30-89 Days
Past Due (5) |
|
$ |
10,605 |
|
|
$ |
12,197 |
|
|
$ |
12,146 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Tax Equivalent Net Interest
Income |
|
$ |
34,354 |
|
|
$ |
34,299 |
|
|
$ |
28,142 |
|
|
$ |
68,653 |
|
|
$ |
54,403 |
|
| |
Net Charge-offs during
Period |
|
$ |
254 |
|
|
$ |
255 |
|
|
$ |
43 |
|
|
$ |
509 |
|
|
$ |
1,627 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
(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, and Other Real Estate Owned. |
|
|
|
|
|
(4) |
Non-performing
loans are defined as Non-accrual Loans and Loans Past Due 90 days
or more. |
|
|
|
|
|
(5) |
Loans 30-89 days past due and
still accruing. |
|
|
|
|
|
|
|
|
|
|
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
German American Bancorp (NASDAQ:GABC)
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From Mar 2024 to Apr 2024
German American Bancorp (NASDAQ:GABC)
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From Apr 2023 to Apr 2024
