A BENCHM ARK performance
SUMMARY ANNUAL REPORT 2006
0
our mission
Building relationships that are mutually
beneficial to our clients an d our shareholders.
Table of Contents
OUR VISION
SHAREHOLDERS’ LETTER
OUR EMPLOYEES, OUR COMMUNITIES
LOCAL LEADERSHIP AND DECISION-MAKING
OFFICE OF THE PRESIDENT
OUR SHAREHOLDERS
CORPORATE PROFILE
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
FIVE YEAR SUMMARY
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED INCOME STATEMENTS
LOCATIONS
DIRECTORS AND SENIOR OFFICERS
STRONG TIES, STRONG SOLUTIONS
1
2-3
4
5
7
8
11
12
13
14
15
16-17
18-19
20
0
OUR VISION
German American Bancorp, Inc. will build a regional presence offering a full array
of integrated financial products and services. We will always be mindful of our
community roots and the importance of enhancing and growing the relationships
we have with our shareholders, customers, employees and communities.
A Benchmark Performance
2006 was another record year for German American Bancorp, Inc., marked by strong performance in a
number of areas. Clearly, our business model and organizational structure, which are based on customer
responsiveness and local decision-making, are being embraced by the commercial, agricultural and retail
businesses along with consumers located throughout our market area.
German American Bancorp, Inc., is uniquely positioned to provide comprehensive financial services across
our entire market footprint and our success in growing our business during the past several years is evidence
of our customer’s recognition and acceptance of the value our business model delivers. As German American
moves forward, we look for innovative approaches to deliver on our promise of providing strong financial
solutions with strong local ties to the communities we serve. While maintaining our strategy of focused
execution, we persistently look for creative, innovative ways to deliver products and services that truly
benefit our customers.
Our persistent strong performance and commitment to growth ensures better opportunities today than at any
time in our history. We continue to grow; growing our relationships with existing customers, growing into new
markets, and growing in expertise as we hire new talented professionals and enhance the skills of our existing
team. While we look to expand and move into new markets, nothing takes us away from our goal of putting our
customers first. Our primary interest remains one of enhancing the scope of our products and services while
providing top level customer care.
Moving forward from this year’s benchmark performance, we will continue to implement our growth strategy
with the same discipline and vigor which has resulted in a formula that works; creating new opportunities
for German American Bancorp, Inc. shareholders to share in the success of their Company. As we pursue
new avenues for growth, we remain committed to our approach of offering the finest financial products and
services, delivered by trusted local leadership.
Mark A. Schroeder
President and CEO of
German American Bancorp, Inc.
Dear Shareholders
We’re pleased to have delivered to you, our shareholders, a continuing level of outstanding financial
performance during 2006 as we achieved yet again another record during the past year, both in terms of
net income and earnings per share. It is particularly noteworthy that this 2006 record financial performance
came on the heels of the previous record performance reported in 2005. This year’s Summary Annual Report
“A Benchmark Performance” denotes the strides made during the year not only in terms of exceptional
financial performance but also in the expansion of our market footprint into the Bloomington and Bedford,
Indiana markets and the expansion of our expertise with the addition to our staff of a number of experienced
and talented financial professionals during the year. The 2006 net income of $10,221,000 is the first time in
our Company’s history that we surpassed the $10 million milestone and is a testament to the dedication of
our staff and the loyalty of our customers. We further anticipate the significant loan growth we experienced
in 2006 along with the market expansion of our banking footprint will provide a baseline upon which to build
continued strong financial performance for many years to come.
Our record level of financial performance during 2006 was the result of a number of factors, including a nearly
$4,000,000 increase, representing a 12% improvement, in the level of net interest income driven by both an
increased level of earning assets and slightly higher net interest margin. Your Company’s recent trend of solid
balance sheet growth also continued during 2006 as evidenced by the $144 million of loan growth generated
during the year. This loan growth, which was in excess of 20%, was generated from a variety of sources,
including $54 million of organic growth, $48 million from the acquisition of Stone City Bancshares, Inc. in
January 2006, and $42 million from the purchase of the Southern Indiana-based agricultural loan portfolio
of a regional banking company in December 2006. This strong growth, which occurred within every category
of loans, was particularly significant within the commercial and agricultural lending resulting in the ninth
consecutive year of growth within these components of our portfolio.
During the past year, we also continued to enhance and expand our capabilities within the core banking
segment of our business. In January of 2006, we completed the acquisition of Stone City Bank of Bedford,
Indiana which provided us with a vehicle to not only expand our geographic reach into this new market area
for the Company, but also provided us an opportunity to build upon that platform to open our first banking
office in the economically vibrant Bloomington, Indiana market in February 2007. Additionally, during the
second quarter of 2006, we completed the fourth in a series of recent purchases of non-controlling investments
in small banking companies operating in larger markets adjacent to our own banking footprint. With the
completion of this transaction, your Company now holds non-controlling investments in banks operating in
the Evansville, Indianapolis, Louisville, and Terre Haute/Lafayette market areas. As a result of making these
investments, the Company has an opportunity, as needed and requested by these banks, to participate in
lending opportunities within these larger, more economically diverse markets.
2
In 2006, we reported the fifth consecutive year of record levels of revenue generated from our trust and
investment advisory services and from our insurance operations. We likewise expanded our market area for
these segments of our operations by opening a financial advisory office within the Bedford market as well as
through the acquisition in October 2006 of the insurance agency business of Keach & Grove Insurance, Inc.,
based in Bedford. As a result of the operations of our two principal non-banking subsidiaries, German
American Financial Advisors & Trust Company and German American Insurance, Inc., your Company’s
percentage of income generated from non-interest income sources in 2006 once again placed us near the top
of this important benchmark measure as compared to similarly-sized banking companies nationwide. With the
anticipated long-term impact of expected increasingly competitive pricing on both loans and deposits, we fully
expect these non-interest dependent sources of revenue will continue to grow in importance in the coming
years as we further expand these segments of our business, both geographically and across a broader spectrum
of our existing customer base.
As we look to further our growth through both organic and geographic expansion opportunities, we remain
acutely aware, however, that the most important factor in our future growth and success revolves around
our ability to attract and retain highly qualified and motivated financial professionals. We’re also pleased to
inform you that we believe German American has become the employer of choice within the financial services
industry throughout Southern Indiana. During 2006, we successfully recruited a number of experienced
banking, investment, and insurance professionals to join our organization. These highly talented individuals,
who recognize and appreciate the value of our unique business model, will work hand-in-hand with our entire
staff of dedicated professionals to meet the entire financial needs – banking, insurance, and investment – of our
growing customer base. In doing so, our entire staff of dedicated financial professionals will help enhance the
long-term value of your investment in German American Bancorp, Inc.
Clearly, our business model, which is based on customer responsiveness and local decision-making, coupled
with our financial professionals, who intimately know their local markets, and our wide array of offerings
of state-of-the-art banking, investment, and insurance products and services are being embraced by the
agricultural, commercial and retail businesses along with consumers located throughout our market area.
German American is uniquely positioned to provide comprehensive financial services across our entire market
footprint and our success in growing our business during the past several years is evidence of our customers’
recognition and acceptance of the value our business model delivers.
At this year’s Annual Meeting in April, Bill Hoffman and Chet Thompson, two long-time, valued members of our
Board of Directors, will be retiring. Bill Hoffman, who joined the board of German American in 1986 following
our very first merger transaction with the Bank of Ireland, helped guide your Company through over 20 years
of dynamic growth. Chet Thompson, who joined the German American board in 1997 in connection with the
Peoples Bank merger, has provided valuable counsel regarding the Company’s recent entry into the insurance
and investment advisory lines of business as well as providing market insight relative to the western portion
of our market area. We sincerely thank Bill and Chet for their many years of dedicated service to the German
American shareholders and wish both of them the very best in their retirement.
In closing, on behalf of the directors, officers and staff of your Company, I would like to thank each of you,
our shareholders, for your continued support of our vision of creating a preeminent regional financial services
company. Our growth and success during 2006 places us one step closer to fulfillment of that vision.
Sincerely,
Mark A. Schroeder
President and Chief Executive Officer
March 5, 2007
3
Our Employees, Our Communities
German American Bancorp, Inc., and its family of financial services companies employ talented, compassionate
people throughout the organization, truly making German American special. Delivering genuine, customized,
personal service with a focus on truly serving customers and communities well, our employees bring the Shield
of Excellence commitment to life each and every interaction. As committed professionals who volunteer
time and talents in civic groups or other volunteer organizations, our family of employees is well-known and
respected in our communities. Our family of employees understands the true meaning of community focus and
relationship building, which involves a genuine commitment to making the community better each and every
day with time, effort, and sharing of talents. Whether we are working within the office or within a community
project, our employees make German American special because of their sincerity and dedication.
We take pleasure in serving our customers. Whether financing a home, making the dream of education become
a reality, helping a spouse surprise their loved one with a trip of a lifetime, we enjoy helping our customers
with their financial decisions. To us, offering financial assistance and counsel is more than providing rates and
terms. We attach great importance to the fact that we are also helping to make our customers’ lives better, and
we take that responsibility seriously, providing our services with passion and commitment.
We are large enough to serve the most sophisticated customer needs while being as customer-focused and agile
as smaller organizations. Our customers benefit from the best of both worlds.
4
Local Leadership and Decision-making
German American Bancorp, Inc.’s family of affiliated financial services companies each have local leadership
in their respective markets. The local leadership model allows our organization to make specific, timely
decisions that benefit the customers and communities served in those markets. In addition, local leadership
has the resources of a holding company with over $1 billion in assets supporting them. We are large enough to
serve the most sophisticated clients, and small enough to do so very quickly with a personal touch. Our local
leadership has proven especially powerful for commercial lending growth. Business and agriculture customers
appreciate responsive decision-making by people they know and trust.
Located in Southern Indiana, German American Bancorp, Inc.’s community banking roots are firmly planted
throughout the communities we serve. We understand that our organization has a responsibility and an
opportunity to help build a healthy regional economy. The markets served provide a diverse regional
economy that supports manufacturing, agriculture, tourism, retail, and a variety of service industries.
German American and its family of affiliated financial services companies provide the necessary funding
and financial management for all types of local businesses. For families and individuals in the area, German
American also takes great pride in offering home ownership opportunities and financial planning services.
5
6
Office of the President
To continue our focus on customers and our steadfast commitment to serve local markets exceptionally
well, we have enhanced our organizational structure to provide further specialization and optimized
delivery. With the creation of the Office of the President, we now have three executives who guide the
German American team. Led by President and CEO, Mark Schroeder, the three executives work in tandem
to ensure that the entire organization operates with an eye on truly delivering our pledge of quality and our
commitment of excellence.
Ken Sendelweck, President of Commercial Financial Services, leads your Company’s commercial banking,
cash management, insurance, and the trust and financial advisory group. Ken and his team of exceptional
financial services providers are responsible for serving business customers throughout all of our markets.
The Retail Financial Services President, Clay Ewing, leads your Company’s retail banking sales and operations,
which includes all of the services offered to consumers and the delivery of those products and services such
as our network of banking centers located throughout Southern Indiana. Clay is also responsible for the
operational departments within your Company.
Working together, the Office of the President leads your Company and its team of talented professionals
in delivering the very best to our customers each and every day. This enhanced organizational structure
has already proven beneficial as evidenced by our second consecutive year of record financial performance.
Our focus continues to generate the desired results.
(PICTURED LEFT TO RIGHT ON PAGE 6)
Kenneth L. Sendelweck,
Mark A. Schroeder,
Clay W. Ewing
7
Our Shareholders
The loyalty of our Shareholders is frequently made apparent when we assist with shares that have been passed
from generation to generation. This loyalty and allegiance to German American is greatly appreciated and
recognized as something that must continue to be earned.
Our directors and management team take every step to ensure that we fully evaluate our opportunities to
enhance shareholder value while maintaining a very prudent approach.
8
“ The best way to inspire people to
superior performance is to convince
them by everything you do and by
your everyday attitude that you are
wholeheartedly supporting them.”
– HAROLD S. GENEEN
9
“ The thing about performance is that it is
a celebration of the fact that we do contain
within ourselves infinite possibilities.”
– DANIEL DAY LEWIS
10
Corporate Profile
German American Bancorp, Inc. is a one billion dollar financial services holding company that was formed
in 1982. Our family of six community banking divisions (with a total of 30 banking locations), six
independent insurance agencies and a financial advisory trust company services ten counties throughout
Southern Indiana, providing leading edge financial products and services to some 60,000 individuals,
organizations and businesses.
The Company conducts operations from its main office located in Jasper, Indiana. Through any of German
American Bancorp, Inc. affiliate banking centers, you can find the products and the same great service you
need to manage your finances. These products and services include a full line of Prestige checking accounts,
savings accounts, 24-hour bank by phone, electronic banking, check cards, credit cards, and a complete line
of loan services including mortgage, consumer and commercial credit.
Our mortgage banking operation specializes in the origination of secondary market eligible loans. Many
mortgage loan customers appreciate the one-stop shopping convenience of our mortgage services.
Our full-service insurance agency offices provide a full range of personal and corporate property and casualty,
title, credit life, and accident and health insurance benefits.
Our financial advisor and trust company offers trust, investment and financial planning options to fit the needs
of virtually every potential customer, putting money to work for clients at each affiliate bank.
By combining traditional retail and commercial banking, brokerage and trust services, and full service
insurance, German American Bancorp, Inc. creates a unique opportunity for customers to meet a variety
of needs with a single relationship.
11
Report of Independent Registered Public Accounting Firm
We have audited in accordance with the standards of the Public Company Accounting Oversight Board (United
States) the consolidated balance sheets of German American Bancorp, Inc. as of December 31, 2006 and 2005,
and the related consolidated statements of income, changes in shareholders’ equity, and cash flows for each
of the three years in the period ended December 31, 2006, appearing in the Annual Report on Form 10-K, not
appearing herein. In our report dated February 27, 2007, also appearing in the Annual Report on Form 10-K,
we expressed an unqualified opinion on those consolidated financial statements.
In our opinion, the information set forth in the condensed consolidated financial statements presented on
pages 14 and 15 is fairly stated, in all material respects, in relation to the consolidated financial statements
from which they have been derived.
Crowe Chizek and Company LLC
Louisville, Kentucky
February 27, 2007
12
Five Year Summary
The following selected data should be read in conjunction with the Company’s Annual Report on Form 10-K for 2006.
(dollars in thousands except per share data)
SUMMARY OF OPERATIONS:
Interest Income
Interest Expense
Net Interest Income
Provision for Loan Losses
Net Interest Income after Provision
For Loan Losses
Non-interest Income
Non-interest Expense
Income before Income Taxes
Income Tax Expense
Net Income
YEAR-END BALANCES:
Total Assets
Total Loans, Net of Unearned Income
Total Deposits
Total Long-term Debt
Total Shareholders’ Equity
AVERAGE BALANCES:
Total Assets
Total Loans, Net of Unearned Income
Total Deposits
Total Shareholders’ Equity
PER SHARE DATA(4):
Net Income
Cash Dividends
Book Value at Year-end
OTHER DATA AT YEAR-END:
Number of Shareholders
Number of Employees
Weighted Average Number of Shares(4)
SELECTED PERFORMANCE RATIOS:
Return on Assets
Return on Equity
Equity to Assets
Dividend Payout
Net Charge-offs to Average Loans
Allowance for Loan Losses to Loans
Net Interest Margin
2006
2005
2004
2003
$
$
$
$
$
$
$
63,594
27,398
36,196
925
35,271
15,390
36,456
14,205
3,984
10,221
$ 1,093,424
796,259
867,618
68,333
92,391
$ 1,029,838
715,260
814,440
88,451
$
0.93
0.56
8.39
$
$
$
$
$
50,197
17,984
32,213
1,903
30,310
14,194
31,448
13,056
3,335
9,721
946,467
651,956
746,821
66,606
82,255
925,851
634,526
730,220
84,479
0.89
0.56
7.73
$
$
$
$
$
47,710
16,471
31,239
2,015
29,224
9,620(1)
30,609
8,235
996
7,239
942,094
629,793
750,383
69,941
83,669
927,528
622,240
731,467
82,558
0.66
0.56
7.68
$
$
$
$
$
50,619
21,084
29,535
811
28,724
12,934
32,219(2)
9,439
1,271
8,168
925,946
611,866
717,133
76,880(2)
83,126(3)
938,992
618,340
711,310
87,703(3)
0.73(3)
0.53
7.60(3)
2002
60,494
28,492
32,002
1,115
30,887
9,509
28,967
11,429
1,987
9,442
957,005
610,741
707,194
121,687
104,519
1,000,167
644,990
718,763
103,301
0.79
0.51
8.72
3,438
397
10,994,739
3,494
367
10,890,987
3,219
372
10,914,622
3,198
383
11,176,766(3)
3,299
390
12,007,009
0.99%
11.56%
8.45%
60.30%
0.50%
0.90%
3.96%
1.05%
11.51%
8.69%
62.83%
0.26%
1.42%
3.92%
0.78%
8.77%
8.88%
84.46%
0.24%
1.40%
3.86%
0.87%
9.31%(3)
8.98%(3)
73.26%
0.14%
1.35%
3.61%
0.94%
9.14%
10.92%
64.99%
0.19%
1.36%
3.67%
(1) In 2004, the Company recognized a $3.7 million non-cash pre-tax charge (which reduced Non-interest Income) for the other-than-temporary decline in value of its
FHLMC and FNMA preferred stock portfolio. In 2006, the Company sold these same FHLMC and FNMA preferred stocks and recognized a pre-tax gain of $951.
(2) In 2003, the Company prepaid $40.0 million of FHLB borrowings within its mortgage banking segment. The prepayment fees associated with the extinguishment
of these borrowings totaled $1.9 million.
(3) In March 2003, the Company purchased 1,110,444 (approximately 9% of the number of shares that were then outstanding) of its common shares at $19.05 per share
pursuant to a self tender offer at a total cost, including fees and expenses incurred in connection with the offer, of approximately $21.4 million.
(4) Share and Per Share Data has been retroactively adjusted to give effect for stock dividends and excludes the dilutive effect of stock options.
Year to year financial information comparability is affected by the purchase accounting treatment for mergers and acquisitions.
13
Consolidated Balance Sheets
(dollars in thousands except per share data)
ASSETS
Cash and Due from Banks
Federal Funds Sold and Other Short-term Investments
Cash and Cash Equivalents
Interest-bearing Time Deposits with Banks
Securities Available-for-Sale, at Fair Value
Securities Held-to-Maturity, at Cost (Fair value of $6,192 and $8,811 on
December 31, 2006 and 2005, respectively)
Loans Held-for-Sale
Loans
Less: Unearned Income
Allowance for Loan Losses
Loans, Net
Stock in FHLB of Indianapolis and Other Restricted Stock, at Cost
Premises, Furniture and Equipment, Net
Other Real Estate
Goodwill
Intangible Assets
Company Owned Life Insurance
Accrued Interest Receivable and Other Assets
TOTAL ASSETS
LIABILITIES
Non-interest-bearing Demand Deposits
Interest-bearing Demand, Savings, and Money Market Accounts
Time Deposits
Total Deposits
FHLB Advances and Other Borrowings
Accrued Interest Payable and Other Liabilities
TOTAL LIABILITIES
SHAREHOLDERS’ EQUITY
Preferred Stock, $10 par value; 500,000 shares authorized, no shares issued
Common Stock, no par value, $1 stated value; 20,000,000 shares authorized
Additional Paid-in Capital
Retained Earnings
Accumulated Other Comprehensive Loss
TOTAL SHAREHOLDERS’ EQUITY
$
2006
23,960
5,735
29,695
200
179,222
6,135
1,601
798,635
(2,376)
(7,129)
789,130
10,621
23,245
845
9,655
4,924
21,710
16,441
$ 1,093,424
$
137,671
329,690
400,257
867,618
119,889
13,526
1,001,033
–
11,008
68,216
13,450
(283)
92,391
December 31,
$
$
$
2005
27,644
5,287
32,931
–
181,150
8,684
1,901
653,514
(1,558)
(9,265)
642,691
14,095
20,233
506
3,813
2,388
19,067
19,008
946,467
130,383
307,007
309,431
746,821
105,394
11,997
864,212
–
10,643
63,784
9,391
(1,563)
82,255
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$ 1,093,424
$
946,467
End of period shares issued and outstanding
11,008,562
10,643,514
See Annual Report on Form 10-K
14
Consolidated Income Statements
(dollars in thousands except per share data)
Years Ended December 31,
2006
2005
2004
INTEREST INCOME
Interest and Fees on Loans
Interest on Federal Funds Sold and Other Short-term Investments
Interest and Dividends on Securities:
Taxable
Non-taxable
TOTAL INTEREST INCOME
INTEREST EXPENSE
Interest on Deposits
Interest on FHLB Advances and Other Borrowings
TOTAL INTEREST EXPENSE
NET INTEREST INCOME
Provision for Loan Losses
$ 53,490
545
7,763
1,796
63,594
21,329
6,069
27,398
36,196
925
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
35,271
NON-INTEREST INCOME
Trust and Investment Product Fees
Service Charges on Deposit Accounts
Insurance Revenues
Other Operating Income
Net Gains on Sales of Loans and Related Assets
Net Gain / (Loss) on Securities
2,210
3,901
5,094
2,384
850
951
TOTAL NON-INTEREST INCOME
15,390
NON-INTEREST EXPENSE
Salaries and Employee Benefits
Occupancy Expense
Furniture and Equipment Expense
Data Processing Fees
Professional Fees
Advertising and Promotion
Supplies
Other Operating Expenses
TOTAL NON-INTEREST EXPENSE
Income before Income Taxes
Income Tax Expense
NET INCOME
Earnings per Share
Diluted Earnings per Share
See Annual Report on Form 10-K
21,491
2,797
2,191
1,646
1,786
940
619
4,986
36,456
14,205
3,984
$ 10,221
$
$
0.93
0.93
$
$
$
$
41,751
316
$
39,257
129
5,954
2,176
50,197
13,389
4,595
17,984
32,213
1,903
30,310
2,081
3,723
4,703
2,687
1,000
–
14,194
18,511
2,396
2,008
1,322
1,703
784
544
4,180
31,448
13,056
3,335
9,721
0.89
0.89
5,455
2,869
47,710
11,747
4,724
16,471
31,239
2,015
29,224
2,046
3,537
4,666
2,074
975
(3,678)
9,620
17,814
2,121
2,171
1,186
1,690
888
527
4,212
30,609
8,235
996
7,239
0.66
0.66
$
$
$
15
Locations
citizens state bank
Main Office
305 East Main Street
Petersburg, IN 47567
812.354.8471
www.citizensstatebankcsb.com
first american bank
Main Office
Third and Busseron Streets
Vincennes, IN 47591
812.882.4528
www.firstamericanbankfab.com
first state bank
Main Office
645 Main Street
Tell City, IN 47586
812.547.7025
www.firststatebankfsb.com
german american bank
Main Office
711 Main Street
Jasper, IN 47546
812.482.1314
www.germanamericanbank.com
german american insurance, inc.
Main Office
246 3rd Avenue
Jasper, IN 47546
812.482.2866
www.germanamericaninsurance.com
peoples bank
Main Office
201 East Main Street
Washington, IN 47501
812.254.4630
www.peoplesbankpb.com
stone city bank
Main Office
1502 I Street
Bedford, IN 47421
812.279.6604
www.stonecitybankscb.com
german american bancorp
Bloomington
2614 East 3rd Street
Bloomington, IN 47401
www.germanamericanbancorp.com
german american financial advisors
& trust company
Main Office
711 Main Street
Jasper, IN 47546
812.482.5808
www.germanamericanbancorp.com
Each of our affiliated Banks is a division of
German American Bancorp, which is a banking
subsidiary of German American Bancorp, Inc.
16
● bANk LOcAtIONS
❖ INSuRANcE LOcAtIONS
◆ FINANcIAL ADVISORS LOcAtIONS
17
Directors and Senior Officers
german american bancorp, inc.
Mark A. Schroeder
President & Chief Executive Officer
german american insurance, inc.
Terry W. Hoke
President
Douglas A. Bawel
Christina M. Ernst
Richard E. Forbes
William R. Hoffman
U. Butch Klem
J. David Lett
Gene C. Mehne
Larry J. Seger
Chet L. Thompson
Michael J. Voyles
senior officers:
Clay W. Ewing
President Retail Financial Services
Kenneth L. Sendelweck
President Commercial Financial Services
Stan J. Ruhe
Executive Vice President Credit Administration
Tonya J. Brothers-Bridge
Senior Vice President Retail Delivery, Marketing & Training
Diane S. Hasenour
Senior Vice President Technology & Operations
Bradley M. Rust
Senior Vice President Chief Financial Officer
Gene L. Thewes
Senior Vice President Branch Administration
Douglas A. Bawel
James W. Bobe
Joe A. Dedman
Clay W. Ewing
Richard E. Forbes
Gene C. Mehne
Stan J. Ruhe
Mark A. Schroeder
Kenneth L. Sendelweck
Joseph Wellman
german american financial advisors
& trust company
Kenneth L. Sendelweck
President
Douglas A. Bawel
D. Neil Dauby
Clay W. Ewing
Richard E. Forbes
Gene C. Mehne
Robert F. Richards
Mark A. Schroeder
Joel Smith
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citizens state bank
Joe A. Dedman
President
german american bank
Kenneth L. Sendelweck
President
Robert C. Klipsch
Michael B. McConnell
W. Wyatt Rauch
Mark A. Schroeder
Wayne L. Stone
Michael J. Voyles
Gregory K. Willis
first american bank
Joel B. Smith
President
James W. Bobe
Chairman
Christina M. Ernst
Mark A. Schroeder
Daniel L. Schuckman
James W. Zeigler
first state bank
D. Neil Dauby
President
Clay W. Ewing
Chairman
Gary D. Butler
Michael E. Hammack
John A. Hargis
Joseph E. LeClere
Daniel P. Lutgring
Mark L. Ress
Mark A. Schroeder
James G. Tyler
Maureen B. Braun
William R. Hoffman
U. Butch Klem
Greg W. Kuper
Phil C. Schneider
Mark A. Schroeder
Ray W. Snowden
Brian J. Tretter
peoples bank
Joseph A. Wellman
President
Bryan S. Bullock
David F. Crane
Dan J. Gregory
J. David Lett
Michael B. Lett
Mark A. Schroeder
Chet L. Thompson
David Waller
stone city bank
Robert F. Richards
President
Donald G. Henderson
Larry N. Ikerd
David M. Parker
Mark A. Schroeder
Each of our affiliated Banks is a division of
German American Bancorp, which is a banking
subsidiary of German American Bancorp, Inc.
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Strong Ties, Strong Solutions
German American Bancorp, Inc. is a financial services holding company that owns a commercial bank with
six community banking divisions, a property and casualty insurance operation with six agencies, and a trust
and investment advisory firm. Our approach to offering clients complete financial solutions has proven very
successful for your Company. Our core banking group continues to expand our offerings of loans and other
products and services to businesses and other customers in our communities, and we enjoy growing revenue
from our financial advisory and insurance operations. We invite you to afford us the opportunity to both
serve you as a customer and increase the value of your investment by allowing us to provide all your banking,
insurance, and investment needs. Know that you can expect excellence, in all areas of financial services,
where you see our Shield of Excellence.
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cAutIONARY NOtE RE: FORWARD-LOOkING StAtEMENtS
this Summary Annual Report, including our President’s letter to our Shareholders on pages 2 and 3, includes forward-looking statements, within
the meaning of the Private Securities Litigation Reform Act of 1995, relating to such matters as our anticipated future financial performance, our
potential increased participation in loans that are generated in other markets, the anticipated future expansion of our trust and investment advisory
and insurance operations, and our success in the recruitment and retention of financial services professionals. Readers are cautioned that actual
results and performance may differ materially from any of our present expectations that are expressed or implied by any forward-looking statement
due to the inherent uncertainties in predicting the future, and risks affecting the company and its stock, including those that are described in Item 1,
business-Forward Looking Statements and Associated Risks and in Item 1A, Risk Factors, in our accompanying Annual Report on Form 10-k for 2006.
If you did not receive a copy of the Form 10-k Annual Report with this Summary Annual Report, you may review that document (and our other SEc
filings) via the Internet through the Investors section of our website, www.germanamericanbancorp.com.
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711 Main Street | Jasper, IN 47547-0810
812.482.1314 | www.germanamericanbancorp.com
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