SHIELD of Strength
2008 SUMMARY ANNUAL REPORT
DEAR Shareholders
2008 was truly a remarkable year for German American!
In the face of what many economists are calling the most
severe economic downturn since the Great Depression, your
Company posted successive record quarterly earnings in
each and every quarter of 2008, record annual earnings for
the year, a record level of year-end total assets, a record
level of year-end total loans, a record level of year-end total
deposits, and, perhaps most importantly in this economic
environment, a record level of year-end total shareholders’
equity!
Our 2008 net income totaled $12,803,000, or $1.16 per share, an increase
of 36% from the prior year’s earnings of $9,405,000, or $0.85 per share.
As of December 31, 2008, total assets increased to approximately $1.2
billion with total loans accounting for $890 million of that amount. Year-end
total deposits increased by over 7% to $942 million, and year-end total
shareholders’ equity increased by over 8% to $105 million. Despite the
significant challenges facing the economy, we enjoyed solid performance
throughout our Company, underscoring the strength of our business model
and the significant market share we enjoy in our southern Indiana markets,
which have not been as affected by the current recessionary economic
conditions as other regions of the country.
Our financial achievements of 2008 certainly were impressive, but an
equally as important achievement was our ability to maintain a strong and
growing capital position. We have been and continue to be well-capitalized
(as that term is defined by banking industry regulatory standards), but
we do realize the importance of maintaining a strong capital base in these
uncertain economic times. In that regard, earlier this month, we announced
plans to further strengthen our regulatory capital by offering shareholders
the opportunity to participate in a proposed new offering of up to $30 million
principal amount of subordinated debt securities.
While German American has no immediate need for additional capital
given our achievement of record net income in 2008 and our Company’s
continuation of being well-capitalized under all applicable banking agency
regulatory standards, raising additional regulatory capital now will further
strengthen our capital base, and serve as additional protection from
any impact of the current economic downturn. Additionally, we believe our
markets will present additional loan opportunities to us in the future,
and that additional capital will provide us with the ability to make these
additional loans while remaining a well-capitalized institution for bank
regulatory purposes.
We had also been approved to strengthen our capital position by participating
in the U.S. Treasury Department’s Capital Purchase Program (CPP), which
was designed to attract broad participation by healthy financial institutions,
but we decided to decline the Treasury Department’s offer to purchase up to
$25 million of the Company’s preferred stock. Although we were gratified
to have been approved for the CPP, we believed that the proposed
subordinated debt offering was a better option for our shareholders.
Accordingly, we declined participation in the CPP, and in early March filed
a registration statement with the Securities and Exchange Commission
with respect to our proposed offer, under which our shareholders will have
the opportunity to directly purchase from the Company the new issue of
subordinated debt securities.
The interest that will be payable on the subordinated debentures will be tax-
deductible to the Company, resulting in an effective after-tax financing rate to
us that is comparable to the initial, non-deductible dividend rate that would
have been applicable if the Company had elected to sell preferred shares
under the CPP. Under our proposed rights offering, it is our own shareholders
who will have the opportunity to provide us with additional regulatory capital,
not the federal government.
Clearly, we are in the midst of historic times in the financial industry, but we
are fortunate that your Company is able to deal with these challenges from a
position of strength. Our ability to do so places German American in very rare
company among other financial institutions in our state and our nation. For
this, I am grateful to the dedicated staff of German American. Without their
efforts, the record performance of 2008 would not have been possible. I am
also grateful to each of you, our shareholders, for your loyalty and support.
Together, we will continue to move German American forward in the coming
months and years.
Sincerely,
Mark A. Schroeder
President & Chief Executive Officer
March 2009
German American Bancorp, Inc., has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration
statement (and any updates thereto) and other documents German American Bancorp, Inc., has filed with the SEC for more complete information about German American Bancorp, Inc., and this offering. You may get these documents
for free by visiting EDGAR on the SEC’s web site at www.sec.gov. Alternatively, German American Bancorp, Inc., through Georgeson, the information agent for the rights offering, will arrange to send to you the prospectus if you request
it by calling Georgeson toll-free (800) 733-6860. These documents are also available from Georgeson, 199 Water Street, 26th Floor, New York, NY, 10038.
The subordinated debentures are not deposits at, or other obligations of, a bank or savings association and are not insured or guaranteed by the Federal Deposit Insurance Company (FDIC).
1
TOTAL ASSETS
$1,132
TOTAL ASSETS
$1,093
$1,191
$1,191
$1,132
$942
$946
$1,093
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
$942
(Dollars in Millions)
$946
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
TOTAL LOANS
(Net of Unearned Income)
COMMERCIAL & AGRICULTURAL
LOANS AS % OF TOTAL LOANS
$890
$868
TOTAL LOANS
(Net of Unearned Income)
$796
COMMERCIAL & AGRICULTURAL
LOANS AS % OF TOTAL LOANS
$890
$868
$652
$796
$630
75%
72%
69%
66%
64%
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
(Dollars in Millions)
$652
$630
66%
64%
75%
72%
69%
TOTAL SHAREHOLDER EQUITY
$110,000
$105,174
$100,000
TOTAL SHAREHOLDER EQUITY
$92,391
$97,116
$90,000
$110,000
$83,669
$82,255
$105,174
$97,116
$92,391
$83,669
$82,255
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
(Dollars in Thousands)
$80,000
$100,000
$70,000
$90,000
$60,000
$80,000
$50,000
$70,000
$60,000
$50,000
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
$930
$880
$830
$930
$780
$880
$730
$830
$680
$780
$630
$730
$580
$680
$630
$580
(Dollars in Millions)
STRENGTH in Numbers
(Dollars in Millions)
(Dollars in Thousands)
NET INTEREST INCOME
(Tax-Equivalent)
TOTAL NON-INTEREST INCOME
(Excluding Securities Gains/Losses)
NET INCOME & EARNINGS PER SHARE
$41,525
$19,000
$18,000
$14,000
$18,116
$12,803
$39,205
NET INTEREST INCOME
(Tax-Equivalent)
$37,252
$41,525
$33,443
$39,205
$32,867
$37,252
$33,443
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
$32,867
(Dollars in Thousands)
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
$17,000
TOTAL NON-INTEREST INCOME
(Excluding Securities Gains/Losses)
$16,384
$15,042
$14,502
$18,116
$13,298
$16,384
$15,042
$14,502
$12,000
NET INCOME & EARNINGS PER SHARE
$10,221
$10,000
$14,000
$8,000
$12,000
$6,000
$7,239
$10,000
$4,000
$0.66
$8,000
$2,000
$7,239
$9,721
$9,405
$0.89
$9,721
$0.93
$10,221
$0.85
$9,405
$1.16
$12,803
$1.16
$13,298
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
$6,000
$0
$0.93
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
$0.85
$0.89
(Dollars in Thousands)
$4,000
$0.66
(Dollars in Thousands)
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
$2,000
$0
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
$16,000
$19,000
$15,000
$18,000
$14,000
$17,000
$13,000
$16,000
$12,000
$15,000
$11,000
$14,000
$10,000
$13,000
$12,000
$11,000
$10,000
$1,200
$1,150
$1,100
$1,200
$1,050
$1,150
$1,000
$1,100
$950
$1,050
$900
$1,000
$850
$950
$900
$850
$42,000
$40,000
$38,000
$42,000
$36,000
$40,000
$34,000
$38,000
$32,000
$36,000
$30,000
$34,000
$28,000
$32,000
$30,000
$28,000
(Dollars in Thousands)
(Dollars in Thousands)
(Dollars in Thousands)
$120,000
$100,000
$80,000
$120,000
$60,000
$100,000
$80,000
$20,000
$60,000
$0
$40,000
$20,000
$0
$105,174
$97,116
$92,391
$83,669
$82,255
$105,174
$97,116
$92,391
$40,000
$83,669
$82,255
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
(Dollars in Millions)
12.31.04 12.31.05 12.31.06 12.31.07 12.31.08
(Dollars in Millions)
STRONG Communities
Strengthening the communities where we live and work is
a deep-seated commitment throughout German American
Bancorp. It’s more than a responsibility we share, it’s our passion.
By providing loans to strengthen local businesses and to create employment
opportunities, and by offering home ownership options for all types of families,
we are helping our communities by supporting a healthy regional economy.
We actively support the communities in which we live and work. From
coaching youth sports teams to leading local Girl Scout troops, and planning
community celebrations to helping out a neighbor in need, you’ll find that we
employ talented, professional people who care. We work side-by-side with
community leaders to ensure a strong foundation for future generations.
Terri Eckerle
Greg Cardinal
Roberta Graber
left to right:
Kenneth L. Sendelweck, President
Private Banking and Wealth Management
Bradley M. Rust, Executive Vice President
and Chief Financial Officer
Clay W. Ewing, President
Commercial and Retail Banking
Mark A. Schroeder, President and CEO
STRONG Leadership
German American Bancorp, Inc.’s executive team is
committed to an opportunistic, yet disciplined, approach
to leading our organization. This steadfast, conservative commitment
has been the guiding force in our record earnings, our gains in market
share, and our expansion into new markets. Working together, this team
funnels their grounded, disciplined approach to managing financial services
throughout the organization. Our executive team focuses on sustainable,
long-term growth strategies that support the communities we serve.
One fundamental uniqueness of German American Bancorp’s leadership
team is their philosophy of empowering employees to make decisions for our
customers at the local level. We are committed to investing in our financial
professionals with training and encouraging higher education in specialized
fields.
2
3
BAnkInG
Friendly bankers who live and work in the community, understand your
banking needs and know you by name, that’s how business is still
conducted at our 28 banking locations throughout southern Indiana.
Our commercial bankers take special interest in developing relationships with
businesses to ensure that cash flow needs are met and operating funds
to sustain and grow a business are available. Individuals and families
rely on us for home loans, checking and savings accounts they can access
and manage multiple ways with online banking and BankLine 24, and credit
cards and check cards that are serviced locally. We truly feel that we are
partners with every customer we have and back all of our products and
services with the Shield of Excellence, our Shield of Strength.
InSurAnCe
It’s exciting to see so many of German American Bancorp’s commercial
and individual clients secure their businesses and personal assets with our
full-service insurance offerings. In 2008, our drive was to improve operating
efficiencies within this division to further enhance the service level you can
expect from our insurance professionals. We’re covering customers in
southern Indiana with a full range of personal and corporate property and
casual, title, credit life, and accident and health insurance benefits.
fInAnCIAl ADvISorS
Retirement savings, college planning, and transferring wealth through estate
planning, our financial advisor and trust company professionals excel at
putting money to work for virtually any client. Our highly trained professionals
are always mindful that the true measure of success is when clients meet
their dreams and goals.
Setting HIGHER standards in banking, insurance, and wealth management.
By combining traditional retail and commercial banking,
full service insurance, and brokerage and trust
services, German American Bancorp creates a unique
opportunity for customers to meet a variety of needs
with a single relationship.
4
5
Gene Mattingly,
Gaven Oexmann,
Rhonda Hopf, John Gunselman,
Jay Baker
About GABC
Locations
w w w . g e r m a n a m e r i c a n b a n c o r p . c o m
German American Bancorp is headquartered in Jasper, Indiana, and our
market area is comprised of the counties of Daviess, Dubois, Gibson, Knox,
Lawrence, Martin, Monroe, Perry, Pike, and Spencer. With 28 banking
locations, seven insurance locations, and eight financial advisory trust offices,
German American Bancorp extends its financial services offerings throughout
southern Indiana.
With nearly $1.2 billion in assets supporting our organization, our financial
professionals are confident in the backing of a solid, stable financial
institution when serving their customers’ needs. We are large enough to
serve the most sophisticated clients, and community service
oriented to always ensure timely decisions are made at a
local level with a personal touch.
mISSIon
Building relationships that are
mutually beneficial to our
clients and our shareholders.
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 banking roots and the
importance of enhancing and growing
the relationships we have with our
shareholders, customers, employees,
and communities.
GermAn AmerICAn BAnCorp
711 Main Street
Jasper, IN 47546
812.482.1314
GermAn AmerICAn fInAnCIAl
ADvISorS & TruST CompAny
711 Main Street
Jasper, IN 47546
812.482.5808
GermAn AmerICAn InSurAnCe, InC.
246 3rd Avenue
Jasper, IN 47546
812.482.2866
Serving Daviess County
Peoples Bank
German American Financial Advisors
Stafford-Williams Insurance
Serving lawrence County
Stone City Bank
German American Financial Advisors
Keach & Grove Insurance
Serving pike County
Citizens State Bank
German American Financial Advisors
Doty Insurance
Serving Dubois County
German American Bank
German American Financial Advisors
German American Insurance, Inc.
Serving Gibson County
Citizens State Bank
Serving knox County
First American Bank
German American Financial Advisors
Knox County Insurance
Smith & Bell Insurance
Serving martin County
Peoples Bank
German American Financial Advisors
Serving monroe County
German American Bancorp
German American Financial Advisors
Serving perry County
First State Bank
German American Financial Advisors
First State Insurance
Serving Spencer County
First State Bank
monroe CounTy
Bank Locations
Insurance Locations
Financial Advisors Locations
DAvIeSS CounTy
lAWrenCe CounTy
knoX CounTy
mArTIn CounTy
GIBSon CounTy
pIke CounTy
DuBoIS CounTy
perry CounTy
SpenCer CounTy
6
7
German American Bancorp’s Board of Directors are very
active, successful community leaders located throughout
southern Indiana. Our directors take their role of corporate governance
and oversight very seriously, and we feel that is a tremendous strength
for our organization. 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 continually 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.
Douglas A. Bawel
Doug is the President and CEO of Jasper Engines and Transmissions of Jasper, Indiana, a position that
he has held since 1987. Other business interests include Realty Inc. LLC, Win Win Services LLC, and
Dubois County Flight Services. Doug is active in a variety of organizations including Patoka Valley Health
Care Cooperative. He was named Indiana Business Leader of the Year in 2003 and received Indiana’s
Entrepreneur of the Year Award for Manufacturing.
Christina m. ernst
Chris is the President and Chairman of the Board for Miller Construction Company, Inc., a third generation
family business based in Vincennes, Indiana, specializing in the building and maintenance of high voltage
power lines for utility companies located throughout the Midwest. Chris holds a Bachelor of Science Degree
and a Master of Science Degree from Indiana University. She was a founding member of the Knox County
Community Foundation and serves as Vice Chairman of the Vincennes University Foundation Board
of Directors. Chris was recognized by the State of Indiana as the recipient of the Torchbearer Award, the
highest award presented to women by the State, for inspiring women through her leadership and success
in a non-traditional career.
Our Board of Directors
richard e. forbes
Rich is President and CEO of Fortune Brands Home and Hardware, the $4.6 billion subsidiary of Fortune
Brands, Inc. that includes MasterBrand Cabinets, Moen faucets, Therma-Tru doors, Simonton windows,
Master Lock padlocks and Waterloo tool storage brands. He was named to this position January 1,
2007. Prior to his current role, Rich held positions of increasing responsibility at MasterBrand Cabinets
for nearly 20 years, including being named President in 1999. Rich currently serves on the boards of the
Dubois County Area Development Corp. and Memorial Hospital Foundation, and is active on the Finance
Committee of the Dubois County Community Foundation.
u. Butch klem
Butch is president and CEO of U.B. Klem Furniture Company located southeast of Jasper, Indiana.
Butch founded the company, which specializes in restaurant furniture manufacturing for a variety
of national franchisors, in 1973. He was awarded the Indiana Entrepreneur of the Year Award for
Manufacturing in 1995.
J. David lett
As a partner with Lett and Jones Attorneys at Law, Dave serves Loogootee and Martin County with his
law practice and is actively involved in many community groups. He also serves as a part-time Deputy
Prosecuting Attorney for Daviess County, Indiana. Dave received his Bachelor of Arts from Franklin College
and his Juris Doctor degree from Thomas M. Cooley School of Law.
Gene C. mehne
Gene holds an Associates degree from Vincennes University and graduated with distinction with a
Bachelor of Science Degree from Purdue University. Gene is President and Manager of Mehne Farms, Inc.,
which operates in northern Dubois County. Gene is involved in various farm organizations and serves as
Treasurer of St. Paul’s Capital Stewardship Fund.
mark A. Schroeder
Mark Schroeder is the President and CEO of German American Bancorp, Inc. Mark earned an Associate
of Science degree in Banking and Finance from Vincennes University, a Bachelor of Science Degree in
Financial Management from University of Evansville, and holds a Certified Public Accounting license
from the State of Indiana. Mark is also a graduate of the ABA Commercial Lending Graduate School
and the ABA Stonier Graduate School of Banking. Mark is Vice Chairman of the Board of Directors of the
Indiana Department of Financial Institutions and a member of the Board of Directors of the Indiana Bankers
Association. Mark also serves on the Board of Directors of the Independent Community Bankers of America,
the national trade association for community banking.
larry S. Seger
Larry holds his Bachelor of Science degree in Business Marketing from Indiana University. As the President
of Wabash Valley Produce, Larry oversees sales exceeding $400 million with 950 employees in
seven locations. Larry also serves as the U.S. Egg Marketers President and Chairman.
michael J. voyles
Mike was awarded the Petersburg Pride Good Neighbor Business Award in 2005 for his efforts in giving
back to the Petersburg community. Mike is the President of M.J.V., Inc. He earned his Bachelor of Science in
Electrical Engineering from Purdue University.
8
9
STRONG Connections
At every touch point of an interaction between our customers and our bankers, insurance
agents, or financial advisors, our entire German American Bancorp team takes responsibility for
ensuring accuracy, timeliness, and service excellence. our operations and support team
works diligently behind the scenes everyday to enhance our customers’ experience.
Julie Lewis,
Nancy Giesler,
Dale Altstadt,
Brett Warner, Andrew Krempp,
Vicki Schuler
our entire German American Bancorp team is dedicated to supporting our commitment to
service excellence, as made evident by our sophisticated networked systems, technologies
that offer our customers the latest way to access account information, and methodologies
that ensure accuracy and timeliness. furthermore, our team members constantly impress with
their willingness to lend a helping hand to and share areas of expertise with co-workers;
a true testament to the caliber of individuals who make up German American Bancorp.
Josh Stolz
Dayleen Ragains, Jane Schneider
Mike Hayes
Floyd Alsman
Tom Louviere, Tim Bell
Josh Morrison
10
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, 2008 and 2007, 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, 2008, appearing in the Annual Report on
Form 10-K, not appearing herein. In our report dated February 28, 2009, 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 balance sheets
and statements of income 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 Horwath LLP
Louisville, Kentucky
February 28, 2009
Five Year Summary
The following selected data should be read in conjunction with the Company’s Annual Report on Form 10-K for 2008.
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(1):
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(1)
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
2008
2007
2006
2005
2004
$
$
67,845
26,908
40,937
3,990
36,947
18,210
36,716
18,441
5,638
12,803
$ 1,190,828
890,436
941,750
105,608
105,174
$ 1,174,583
880,630
922,137
99,711
$
1.16
0.56
9.54
$
$
$
$
$
72,261
33,646
38,615
3,591
35,024
15,704
37,221
13,507
4,102
9,405
1,131,710
867,721
877,421
86,786
97,116
1,114,140
840,849
889,736
93,677
0.85
0.56
8.81
$
$
$
$
$
$
$
$
$
$
63,594
27,398
36,196
925
35,271
15,993
37,059
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
14,502
31,756
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
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
3,684
348
11,029,519
3,647
371
11,009,536
3,438
397
10,994,739
3,494
367
10,890,987
3,219
372
10,914,622
1.09%
12.84%
8.83%
48.25%
0.29%
1.07%
3.82%
0.84%
10.04%
8.58%
65.65%
0.32%
0.93%
3.83%
0.99%
11.56%
8.45%
60.29%
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%
12
(1) Share and per data 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
Consolidated Statements of Income
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
Securities available-for-Sale, at fair value
Securities held-to-maturity, at cost (fair value of $3,358 and $4,496
on december 31, 2008 and 2007, 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
decemBer 31,
2008
2007
$
17,201
27,791
44,992
175,840
3,326
3,166
892,511
(2,075)
(9,522)
880,914
10,621
22,330
1,818
9,655
3,141
23,338
11,687
25,283
2,631
27,914
148,300
4,464
5,697
870,643
(2,922)
(8,044)
859,677
10,621
22,783
1,517
9,655
4,030
22,533
14,519
totaL aSSetS
$
1,190,828
$
1,131,710
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 income
totaL SharehoLderS’ eQuity
$
$
147,977
439,305
354,468
941,750
131,664
12,240
136,212
353,643
387,566
877,421
144,170
13,003
1,085,654
1,034,594
–
11,030
68,371
23,019
2,754
105,174
–
11,029
68,408
16,681
998
97,116
totaL LiaBiLitieS and SharehoLderS’ eQuity
$
1,190,828
$
1,131,710
end of period shares issued and outstanding
11,030,288
11,029,484
See annual report on form 10-K.
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
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES
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
totaL non-intereSt income
NON-INTEREST EXPENSE
Salaries and employee Benefits
occupancy expense
furniture and equipment expense
data processing fees
professional fees
advertising and promotion
Supplies
intangible amortization
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.
yearS ended decemBer 31,
2008
2007
2006
$
58,477
593
$
8,007
768
67,845
21,212
5,696
26,908
40,937
3,990
36,947
2,288
4,920
6,306
3,203
1,399
94
$
63,852
478
6,992
939
72,261
27,289
6,357
33,646
38,615
3,591
35,024
2,590
4,361
5,794
2,817
822
(680)
53,490
545
7,763
1,796
63,594
21,329
6,069
27,398
36,196
925
35,271
2,210
3,901
5,094
2,920
917
951
18,210
15,704
15,993
20,786
3,249
2,428
1,493
1,670
1,078
570
889
4,553
36,716
18,441
5,638
12,803
1.16
1.16
$
$
$
21,671
3,144
2,235
1,370
1,418
957
625
894
4,907
37,221
13,507
4,102
9,405
0.85
0.85
$
$
$
21,491
2,797
2,191
1,646
1,786
940
619
698
4,891
37,059
14,205
3,984
10,221
0.93
0.93
$
$
$
14
15
enabling customers to make sound financial decisions is the main
objective of German American. Gaining a clear understanding
of customer needs by truly listening to the customer, results in
solutions that work. Strong ties to customers begin with open,
two-way communication, made possible by our local presence
and commitment to exceeding customer expectations.
STRONG Ties, STRONG Solutions.
Ken Frye
Tom Acton
Eric Kehl
16
Cautionary Note re: Forward-Looking Statements
This Summary Annual Report, including our President’s letter to our Shareholders on page 1, 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
and stock market performance, our Bloomington market, our credit quality, and our Effectiveness Plan.
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 2008. 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 Shareholder Information section of our website, www.germanamericanbancorp.com.
This report speaks only as of March 1, 2009, and we do not promise anyone that it will be updated for changes or events after that date.
This legend identifies employees featured on the cover of this report.
Michael Kern
Alex Knepp
Gretchen Lain
Joel Smith
Laura Bogard
Keith Leinenbach
SHIELD of Strength
2008 SUMMARY ANNUAL REPORT
Charles Fleck
Beth McManaway
Jane Thoma
David Henson
Neil Dauby
Rita Denson
Jay Burch
Bonita Fields
J.M. Vieck
711 Main Street • Jasper, IN 47547-0810 • 812.482.1314 • www.germanamericanbancorp.com