Quarterlytics / Financial Services / Banks - Regional / German American Bancorp, Inc. / FY2006 Annual Report

German American Bancorp, Inc.
Annual Report 2006

GABC · NASDAQ Financial Services
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Ticker GABC
Exchange NASDAQ
Sector Financial Services
Industry Banks - Regional
Employees 1020
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FY2006 Annual Report · German American Bancorp, Inc.
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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

18

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.

20

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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