Quarterlytics / Financial Services / Banks - Regional / German American Bancorp, Inc. / FY2011 Annual Report

German American Bancorp, Inc.
Annual Report 2011

GABC · NASDAQ Financial Services
Claim this profile
Ticker GABC
Exchange NASDAQ
Sector Financial Services
Industry Banks - Regional
Employees 1020
← All annual reports
FY2011 Annual Report · German American Bancorp, Inc.
Loading PDF…
 Shield of Strength

Summary Annual Report 2011

THE

umbers
 Numbers

Total Assets
(dollars in millions)

$2,100

$1,800

$1,500

$1,200

$1,132

$1,191

$1,874

$1,243

$1,376

Total Loans, Net of Unearned Income
(dollars in millions)
Commercial and Agriculture Loans as % of Total Loans
$1,121

$868

$890

$878

$917

77%

79%

81%

75%

72%

$1,200

$1,000

$800

$600

$400

$200

$0

$900

$600

$300

$0

$1,800

$1,500

$1,200

$900

$600

$300

$0

$70,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000

$0

12/31/07

12/31/08

12/31/09

12/31/10

12/31/11

12/31/07

12/31/08

12/31/09

12/31/10

12/31/11

Total Deposits
(dollars in millions)

$1,556

$942

$970

$877

$1,087

Total Shareholders’ Equity
(dollars in thousands)
Annualized Return of Equity

$167,610

$97,116

$105,174

$113,549

$121,534

12.84%

11.12%

11.18%

12.67%

10.04%

$180,000

$150,000

$120,000

$90,000

$60,000

$30,000

$0

12/31/07

12/31/08

12/31/09

12/31/10

12/31/11

12/31/07

12/31/08

12/31/09

12/31/10

12/31/11

Net Interest Income (Tax-Equivalent)
(dollars in thousands)
Net Interest Margin

$65,202

$39,205

$41,525

$49,481

$45,323

3.83%

3.82%

3.84%

3.95%

3.98%

Net Income & Earnings Per Share
(dollars in thousands)

$20,249

$12,803

$12,218

$13,405

$1.61

$1.16

$1.10

$1.21

$9,405

$0.85

$21,000

$18,000

$15,000

$12,000

$9,000

$6,000

$3,000

$0

12/31/07

12/31/08

12/31/09

12/31/10

12/31/11

12/31/07

12/31/08

12/31/09

12/31/10

12/31/11

A LETTER TO OUR

hareholders
 Shareholders

1

Mark Schroeder
Chairman and CEO

Dear Shareholders:

The theme of this year’s Summary Annual Report, Shield of 
Strength, supports German American’s continued efforts to 
enhance the strength and stability upon which our reputation 
has been built over the course of a century of service to our 
Southern Indiana market area. During 2011, German American 
once again delivered superior performance in terms of improved 
fi nancial results, market expansion, and balance sheet growth. 

Financially, we achieved a milestone of successive record 
quarters in each of the four quarters of 2011, which on a 
combined basis, resulted in extremely strong record fi nancial 
performance for the year. Our reported net income for 2011 of 
$20.3 million, or $1.61 per share, represents a 33.1% increase in 
earnings per share above the previous record annual earnings 
of $13.4 million, or $1.21 per share, recorded in 2010. A further 
indication of the continuing trend of your Company’s strong 
fi nancial performance is the achievement, during the past four 
years, of the best four year period, in terms of reported annual 
earnings, in the Company’s 101 year history. Additionally, the 
Company’s return on average shareholder equity of 12.67% in 
2011 represents the 7th consecutive year that German American 
has delivered double-digit returns on shareholders’ equity.     

Your Company also made signifi cant strides in 2011 relative to 
our continued expansion within the Evansville and Bloomington, 
Indiana, markets. In January, we fi nalized the acquisition of 
the Bank of Evansville which added three more locations to 
our existing Evansville branch banking network. In April, we 
expanded our trust operations by recruiting an experienced 
Evansville-based trust team to manage and grow our trust 
client base in that market. Additionally, in July, we opened a 
new downtown fi nancial center in Bloomington allowing us to 
build upon the signifi cant growth we’ve experienced within 
that market in recent years. We now offer banking, insurance, 
investment, and trust services to our growing client base in both 
the Evansville and Bloomington markets and continue to develop 
plans for further branch expansions and additional product 
offerings within both of these important new markets.

markets, while our expansion into the Evansville, Indiana, market 
contributed approximately another $300 million in average core 
deposits. Core deposits, which are widely recognized as the most 
stable funding source for community banking organizations, 
continue to represent a signifi cant source of funding for German 
American with approximately 86% of average total funding 
sources derived from core deposits during 2011.

Our sole focus is our clients located throughout Southern 
Indiana, and we recognize that our past, present, and future 
success as an organization is explicitly linked to the fi nancial 
well-being of those clients and to the prosperity of the Southern 
Indiana communities in which we do business. We are extremely 
grateful for the economic strength and stability of the Southern 
Indiana market area, and we are very pleased with the growing 
acceptance of German American by the businesses and 
consumers throughout our footprint. More and more, clients 
throughout our market area are coming to recognize the 
benefi ts of working with German American for the fulfi llment 
of all their fi nancial needs. They value the safety, soundness, 
and protection afforded them by German American’s Shield of 
Strength.      

The achievement of our record level of performance over the 
course of the past four years, during an extremely diffi cult 
economic period, places German American among a very elite 
group of fi nancial institutions nationwide. This combination of 
strong fi nancial performance, important new market expansion, 
and signifi cant balance sheet growth positions German American 
very well for continued future success within both our legacy 
markets and expansion markets and across all of our lines of 
business _ banking, insurance, investment, and trust.

We are extremely pleased to be able to once again deliver 
upon our commitment to our customers to offer the very best 
in fi nancial products and services throughout our Southern 
Indiana footprint in a safe, sound, and secure manner. We are 
equally as pleased to once again deliver upon our commitment 
to you, our shareholders, to enhance the long-term value of your 
investment in German American by means of the achievement 
of consistent, superior fi nancial performance.  

In terms of balance sheet growth, we experienced dramatic 
growth within average core deposits, as this important 
component of our funding base grew by over $450 million, 
or by nearly 50%, during 2011. Approximately $150 million of 
the core deposit growth was generated from within our legacy 

Sincerely,

Mark A. Schroeder
Chairman & CEO

OUR

 Commitment

2

Committed to the growth and prosperity of 
southern Indiana.

Bloomington

MONROE
COUNTY

Bedford

LAWRENCE
COUNTY

DAVIESS
COUNTY

Odon/Cannelburg

Vincennes

Washington

KNOX COUNTY

Loogootee

MARTIN
COUNTY

Otwell

Petersburg

Ireland

Dubois

Jasper

DUBOIS
COUNTY

Huntingburg

Holland

Ferdinand

SPENCER
COUNTY

PERRY
COUNTY

Tell City

Princeton

GIBSON COUNTY

Oakland
City

VANDERBURGH
VANDERBURGH
VANDERBURGH
COUNTY
COUNTY
COUNTY

Winslow

PIKE
COUNTY

WARRICK
COUNTY

Evansville

Newburgh

Rockport

Banking

Investments

Insurance

3

Bedford

Holland

Oakland City

Tell City

1502 I Street
2606 16th Street
1410 L Street

Bloomington

2614 E. 3rd Street
504 N. College Avenue

Dubois

4541 N. 4th Street

Evansville

4424 Vogel Road
3150 Lynch Road
530 N. St. Joseph Avenue
515 Dixie Lane

405 N. Meridian

1100 W. Morton Street

Huntingburg

Montgomery

309 E. 13th Street 

7721 N. CR 900 E.

Ireland

Otwell

5138 W. State Road 56

1665 N. State Road 257

Jasper

711 Main Street
209 3rd Avenue
Highway 231 & 2nd Street
3585 Newton Street

Petersburg

305 E. Main Street
518 E. Main Street 

Princeton

231 W. Broadway

Loogootee

100 Charles Street 

Rockport

704 N. 5th Street

645 Main Street 
1508 12th Street
208 E. Highway 66

Vincennes

101 N. 3rd Street
2814 N. 6th Street
1700 Willow Street

Washington

201 E. Main Street
205 E. Main Street
Cherry Tree Plaza

Winslow

300 Main Street

Ferdinand

Newburgh

1020 Main Street

3933 Venetian Drive

New Offi ces Opened in 2011

Bloomington 9 North

Evansville Vogel Road

Evansville St. Joseph Avenue

Evansville Highway 41 North

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OUR

 Company

4

Our Shield of Strength is defi ned quite simply. It’s the loyalty of our 

customers. The welcoming of new customers as we grow. Engaging in 

our communities and giving back. The commitment of our shareholders. 

The dedication of our strong team of banking, insurance, and investment 

professionals.

The years 2008, 2009, 2010, and 2011 have been the  

   best 4 years in our company’s history with record 

            earnings recorded in each of the past two years.

Clay W. Ewing
President, Commercial
and Retail Banking

Bradley M. Rust
Executive Vice President,
and Chief Financial Offi cer

Kenneth L. Sendelweck
President, Private Banking 
and Wealth Management

Mark A. Schroeder
Chairman and CEO

OUR VISION
It is our vision to build 

a regional presence, 

offering a full array 

of fi nancial products 

and services. We will 

always be mindful 

of community 

banking roots and 

the importance 

of enhancing 

and growing the 

relationships we 

have with our 

shareholders, 

customers, 

employees, and 

communities.

OUR MISSION
Our mission is to 

build relationships 

mutually benefi cial

to our clients and our 

shareholders.

Banking

Since 1910 our customers have partnered with German American for their 

banking needs. We have helped our customers open and grow businesses, 

buy and build new homes, send children to college, retire comfortably, 

and manage the day to day fi nancial needs of individuals, families, and 

businesses. We offer the convenience of banking in any of our 34 offi ces 

throughout southern Indiana or online with our suite of personal and 

business online banking products. Our business bankers are connected to 

the fi nancial climate of southern Indiana and design fi nancial packages 

that help clients thrive. 

Insurance

Our insurance professionals realize that insuring you and your assets 

is much more than replacing material items. It’s peace of mind knowing 

that all of your hard work and dreams can continue even in unfortunate 

circumstances. We represent a variety of excellent insurance carriers, 

which helps our personal and commercial agents fi nd the best coverage 

for each particular client at the most affordable price. We are dedicated to 

our philosophy of careful analysis, cost-effective protection, thorough risk 

management, and personal service.

Investments

We believe that a sound investment strategy is a process that takes a 

very comprehensive approach to understanding the clients’ goals and 

objectives. Personal and business clients appreciate our clear vision 

to help them develop effective fi nancial plans to help them retire 

comfortably, send children to college, transfer wealth from one generation 

to the next, and make sound fi nancial decisions.

5

COMMUNITY 
INVOLVEMENT
Giving back to the 

communities we 

serve in southern 

Indiana is ingrained 

in our culture. 

Throughout our 100 

plus year history, we 

have supported many 

important and valued 

projects undertaken 

by both charitable 

organizations and 

civic institutions. 

We have a long 

history of community 

involvement, both 

from a contributory 

standpoint, as well as 

a dedication to hands-

on volunteer efforts.

It has long been a 

focus of German 

American to support 

and sustain organized 

efforts in our 

communities which 

serve and promote 

areas of education, 

the arts, economic 

development, 

and community 

enrichment.

BOARD OF

irectors
 Directors

6

Douglas A. Bawel

Christina M. Ernst

Marc D. Fine

supports 

Doug is the Chairman and CEO of Jasper 
in  Jasper, 
Engines  and  Transmissions 
Indiana.  Other  business  interests  include 
Realty Inc. LLC, Air, LLC, and BAM Leasing. 
Doug 
community 
including  Patoka  Valley 
organizations, 
Health Care Cooperative. He has received 
the  Indiana  Business  Leader  of  the  Year 
award  and  Indiana’s  Entrepreneur  of  the 
Year award in manufacturing.

various 

Marc,  who  was  a  founding  director  of 
American  Community  Bancorp,  Inc.,  has 
practiced law in Evansville, Indiana, since 
1984 and is a founding member of the law 
fi rm  of  Rudolph,  Fine,  Porter  &  Johnson, 
LLP, in Evansville. Marc is active in many 
civic  and  community  organizations  in 
Evansville.

Chris  is  the  president  and  chairman  of 
Miller Construction Company, Inc., a third 
generation  family  business  in  Vincennes, 
Indiana,  specializing  in  the  building  and 
maintenance  of  high  voltage  power 
lines  for  midwestern  utility  companies. 
A  founding  member  of  Knox  County 
Community  Foundation,  she  serves  as 
vice chairman of the Vincennes University 
Foundation  Board  of  Directors  and  has 
received the Torchbearer award from the 
State of Indiana. Chris holds a Bachelor of 
Science  degree  and  a  Master  of  Science 
degree from Indiana University.

Richard E. Forbes

U. Butch Klem

J. David Lett

In  January  2010,  Rich  retired  from  his 
position as President and CEO of Fortune 
Brands  Home  and  Hardware,  a  Fortune 
500  company.  Certifi ed  as  a  public 
accountant  in  1970,  he  became  chief 
fi nancial offi cer of MasterBrand Cabinets, 
Inc.,  a  cabinet-manufacturing  subsidiary 
of  Fortune  Brands,  and  later  became 
that subsidiary’s President and CEO. Rich 
currently serves on the board of a private 
manufacturing company in Georgia and is 
active  on  the  Finance  Committee  of  the 
Dubois County Community Foundation.

Butch  is  president  and  CEO  of  U.B.  Klem 
Furniture  Company,  located  southeast  of 
Jasper, Indiana. He founded the company, 
furniture 
specializing 
manufacturing  for  a  variety  of  national 
franchisors,  in  1973.  Butch  has  received 
Indiana’s Entrepreneur of the Year award 
in manufacturing.

restaurant 

in 

Indiana,  with  his 

As a partner of Lett and Jones Attorneys 
at  Law,  Dave  serves  Loogootee  and 
Martin  County, 
law 
practice while being involved in a variety 
of  community  groups.  He  also  serves  as 
a  part-time  deputy  prosecuting  attorney 
for Daviess County, Indiana. Dave earned 
a  Bachelor  of  Arts  degree  from  Franklin 
College  and  a  Juris  Doctor  degree  from 
Thomas M. Cooley School of Law.

irectors

7

Gene C. Mehne

Chris A. Ramsey

Mark A. Schroeder

Gene is president and manager of Mehne 
Farms,  Inc.  in  northern  Dubois  County, 
Indiana.  Gene  is  involved  in  various  farm 
organizations  and  serves  as  treasurer  of 
St.  Paul’s  Capital  Stewardship  Fund.  He 
earned a Bachelor of Science degree from 
Purdue University.

of 

Corporation 

is  president  of  Ramsey 
Chris,  who 
Tell 
Development 
City,  Indiana,  is  the  owner  of  several 
businesses  in  the  construction  and  real 
estate  industry.  He  has  been  engaged  in 
real  estate  development  for  more  than 
25  years.  Chris  previously  served  on 
several  other  bank  boards  in  southern 
Indiana and is involved in various civic and 
professional  organizations  at  the  local, 
state, and national level.

Mark is the Chairman and CEO of German 
American  Bancorp,  Inc.,  as  well  as  the 
vice  chairman  of  the  board  of  members 
of  the  Indiana  Department  of  Financial 
Institutions.  He  has  also  served  on  the 
board  of  directors  of  the  Independent 
Community  Bankers  of  America,  the 
national trade association for community 
banking. He earned a Bachelor of Science 
degree  in  financial  management  from 
the  University  of  Evansville  and  holds  a 
Certified Public Accounting (CPA) license 
from the State of Indiana. Mark graduated 
from 
the  ABA  Commercial  Lending 
Graduate  School  and  the  ABA  Stonier 
Graduate School of Banking.

Thomas W. Seger

Michael J. Voyles

Tom  is  Vice  President  of  Wabash  Valley 
Produce  and  President  of  Simple 
Transportation,  both  located  in  Dubois, 
Indiana. He serves on the boards of Brown 
Produce  Company  in  Farina,  Illinois,  and 
Ballas  Egg  Products  in  Zanesville,  Ohio, 
and he shares ownership in Farbest Foods, 
Huntingburg,  Indiana,  and  JFS  Milling, 
Dubois,  Indiana.  Tom  is  also  a  board 
member  and  treasurer  of  Patoka  Valley 
Health Care Cooperative.

Mike  is  the  president  of  M.J.V.,  Inc.  and 
received  the  Petersburg  Pride  Good 
Neighbor Business award in 2005 for his 
efforts  in  giving  back  to  the  Petersburg 
community.  He  earned  a  Bachelor  of 
Science  degree  in  Electrical  Engineering 
from Purdue University.

REPORT OF INDEPENDENT REGISTERED PUBLIC

ccounting Firm
 Accounting Firm

8

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, 2011 and 2010, and the related consolidated statements 

of income and comprehensive income, changes in shareholders’ equity, and cash fl ows 

for each of the three years in the period ended December 31, 2011, appearing in the 

Annual Report on Form 10-K, not appearing herein. In our report dated March 9, 2012, 

also appearing in the Annual Report on Form 10-K, we expressed an unqualifi ed opinion 

on those consolidated fi nancial statements.

In our opinion, the information set forth in the consolidated balance sheets and 

consolidated statements of income and comprehensive income presented on pages 10 

and 11 is fairly stated, in all material respects, in relation to the consolidated fi nancial 

statements from which they have been derived.

Crowe Horwath LLP

Indianapolis, Indiana

March 9, 2012

 
 
 
FIVE YEAR
Dollars in thousands, except per share data

ummary
 Summary

The following selected data should be read in conjunction with the Company’s Annual Report on Form 10-K for 2011.

9

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 Employees 

2011 

2010 

2009 

2008 

2007

$ 

80,161  

$ 

64,193  

$ 

63,736  

$ 

67,845  

$ 

72,261

16,180  

63,981  

6,800  

57,181  

21,576  

50,782  

27,975  

7,726  

15,522  

48,671  

5,225  

43,446  

16,943  

41,361  

19,028  

5,623  

19,223  

44,513  

3,750  

40,763  

15,859  

40,391  

16,231  

4,013  

26,908  

40,937  

3,990  

36,947  

18,210  

36,716  

18,441  

5,638  

$ 

20,249  

$ 

13,405  

$ 

12,218  

$ 

12,803  

$ 

33,646

38,615

3,591

35,024

15,704

37,221

13,507

4,102

9,405

$ 1,873,767  

$ 1,375,888  

$  1,242,965  

$ 1,190,828  

$ 1,131,710

  1,120,993  

917,236  

  1,556,198  

  1,087,286  

90,974  

167,610  

81,016  

121,534  

877,822  

969,643  

113,320  

113,549  

890,436  

941,750  

105,608  

105,174  

867,721

877,421

86,786

97,116

$ 1,823,703  

$ 1,330,540  

$  1,230,596  

$ 1,174,583  

$ 1,114,140

  1,114,181  

906,127  

  1,521,204  

  1,046,295  

159,765  

119,867  

891,322  

963,928  

109,887  

880,630  

922,137  

99,711  

840,849

889,736

93,677

$ 

$ 

1.61  

0.56  

13.31  

1.21  

0.56  

10.94  

$ 

1.10  

$ 

1.16  

$ 

0.56  

10.25  

0.56  

9.54  

0.85

0.56

8.81

417  

359  

332  

348  

371

Weighted Average Number of Shares(1) 

 12,581,646  

 11,098,836  

  11,065,917  

 11,029,519  

 11,009,536

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 

(1) Share and Per Share Data excludes the dilutive effect of stock options.

1.11%  

12.67%  

8.95%  

34.80%  

0.43%  

1.37%  

3.84%  

1.01 % 

11.18 % 

8.83 % 

46.36 % 

0.32 % 

1.45 % 

3.98 % 

0.99 % 

11.12 % 

9.14 % 

50.71 % 

0.25 % 

1.25 % 

3.95 % 

1.09 %   

0.84 %

12.84 %   

10.04 %

8.83 %   

8.58 %

48.25 %   

65.65 %

0.29 %   

1.07 %   

3.82 %   

0.32 %

0.93 %

3.83 %

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
tatements of Income and Comprehensive Income

CONSOLIDATED

alance Sheets
Balance Sheets

Dollars in thousands, except per share data

10

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 $697 and $1,613
  on December 31, 2011 and 2010, respectively) 

Loans Held-for-Sale, at Fair Value 

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,

2011 

2010

28,366  

32,737  

61,103  

5,986  

516,844  

690  

21,485  

1,123,549  

(2,556 ) 

(15,312 ) 

1,105,681  

8,340  

37,706  

2,343  

18,865  

4,346  

29,263  

61,115  

$ 

15,021

4,250

19,271

-

346,747

1,604

11,850

918,718

(1,482 )

(13,317 )

903,919 

9,207 

25,974 

2,095 

9,835

2,624 

24,822 

17,940 

TOTAL ASSETS 

$ 

1,873,767  

$  1,375,888 

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, no par value; 500,000 shares authorized, no shares issued 

Common Stock, no par value, $1 stated value; 30,000,000 shares authorized 

Additional Paid-in Capital 

Retained Earnings 

Accumulated Other Comprehensive Income 

$ 

282,335  

899,584  

374,279  

$ 

184,204

541,532

361,550

1,556,198  

  1,087,286

130,993  

18,966  

153,717

13,351

1,706,157  

  1,254,354

-  

12,594  

95,039  

49,434  

10,543  

-

11,105

69,297

36,232

4,900

TOTAL SHAREHOLDERS’ EQUITY 

167,610  

121,534

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 

$ 

1,873,767  

$  1,375,888

End of period shares issued and outstanding 

12,594,258  

  11,105,583

See Annual Report on Form 10-K.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED

tatements of Income and Comprehensive Income
 Statements of Income and Comprehensive Income

Dollars in thousands, except per share data

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 
Company Owned Life Insurance 
Interchange Fee Income 
Other Operating Income 
Net Gains on Sales of Loans 
Net Gain (Loss) on Securities 

TOTAL NON-INTEREST INCOME 

Non-Interest Expense
Salaries and Employee Benefi ts 
Occupancy Expense 
Furniture and Equipment Expense 
FDIC Premiums 
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 

Other Comprehensive Income:
Changes in Unrealized Gain (Loss) on Securities Available-for-Sale, Net 
Change in Unrecognized Loss on Postretirement Benefi t Obligation 
Change In Unrecognized Amounts in Pension 
Total Other Comprehensive Income 

COMPREHENSIVE INCOME 

Basic Earnings per Share 
Diluted Earnings per Share 

See Annual Report on Form 10-K.

2011 

Years Ended December 31,
2010 

2009

11

$ 

64,445  
216  

13,677  
1,823  

80,161  

11,986  
4,194  

16,180  

63,981  
6,800  
57,181  

2,145  
4,154  
5,819  
1,100  
1,501  
1,452  
2,381  
3,024  

$ 

53,266  
76  

9,812  
1,039  

64,193  

10,561  
4,961  

15,522  

48,671  
5,225  
43,446  

1,582  
4,065  
5,347  
806  
1,243  
1,740  
2,160  
-  

53,905
106

8,660
1,065

63,736

13,495
5,728

19,223

44,513
3,750
40,763

1,617
4,395
5,296
1,104
969
1,141
1,760
(423 )

21,576  

16,943  

15,859

27,992  
4,264  
2,934  
1,473  
2,092  
2,056  
1,525  
688  
1,956  
5,802  

50,782  

27,975  
7,726  

22,070  
3,492  
2,591  
1,455  
1,411  
2,285  
1,255  
755  
898  
5,149  

41,361  

19,028  
5,623  

$ 

20,249  

$ 

13,405  

$ 

5,677  
(38 ) 
4  
5,643  

25,892  

1.61  
1.61  

$ 
$ 

$ 

$ 
$ 

474  
(176 ) 
(13 ) 
285  

13,690  

1.21  
1.21  

$ 

$ 

$ 
$ 

$ 

$ 

$ 
$ 

21,961
3,382
2,653
1,863
1,368
1,740
993
528
909
4,994

40,391

16,231
4,013

12,218

1,908
-
(47 )
1,861

14,079

1.10
1.10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
12

The counties we have served the longest – Dubois, Martin, Pike, Perry, Spencer, Daviess, Gibson, Knox, 

Lawrence – are the backbone of our strength and stability as they continue to trust us for their

fi nancial needs. 

We are humbled and honored by the overwhelming acceptance and support we have received from our 

recent entry in the Evansville-area market and expansion in the Bloomington market. Our disciplined 

approach to managing our fi nancial services company along with our strong German American team, 

who work hard everyday, offer our clients higher standards in banking, insurance, and investments.

Randy Braun

Chris LeBeau

David Pleiss

Tony Loudermilk

Jay Baker

CAUTIONARY NOTE REGARDING

orward-Looking Statements
 Forward-Looking Statements

13

This  Summary  Annual  Report,  including  our  CEO’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 

our  expectations  concerning  our  opportunities  for 

future growth and expansion, fi nancial performance, 

and other matters. 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 German American 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.  You  may  review  that 

document (and our other SEC fi lings) via the internet 

through  the  Shareholder  Information  section  of  our 

website,  www.germanamerican.com.  This  report 

speaks  only  as  of  March  9,  2012,  and  we  do  not 

promise anyone that it will be updated for changes 

or events after that date.

4

5

6

7

3

9

8

10

2

1

1. Laura Bogard   2. Neil Dauby   3. John Lamb   4. David Henson   5. Keith Leinenbach
6.   Sherri Alley   7. Joe Dedman   8. Donna Sholtis   9. Joel Smith   10. Gaven Oexmann

711 Main Street  •  PO Box 810  •  Jasper, IN 47547-0810  •  (812)482-1314
germanamerican.com

001CSN0353