GABC Announces Quarterly Cash Dividend, Reports Earnings for 2000, and Finalizes Year-End Balance Sheet Repositioning.Business Editors JASPER, Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. .--(BUSINESS WIRE)--Feb. 2, 2001 German American Noun 1. German American - an American who was born in Germany or whose ancestors were German American - a native or inhabitant of the United States Bancorp (Nasdaq:GABC GABC The German-American Business Council of Boston, Inc. ) announced that, for the sixth consecutive year, its Board of Directors has maintained its quarterly cash dividend per share rate following the Company's annual 5% stock dividend. This latest dividend action results in an effective 5% increase in the cash dividends received by shareholders, increasing the current dividend yield on the Company's stock to approximately 4.50%. The Company's 4th quarter $0.14 per share cash dividend will be paid on or before February February: see month. 20, 2001 to shareholders of record as of February 10, 2001. The Company's earnings for 2000 from its core retail banking operations, inclusive of inclusive of prep. Taking into consideration or account; including. corporate administrative expenses but exclusive of merger related expenses, increased moderately to $8,402,000 in 2000 from the $8,380,000 recorded during fiscal year 1999. The significantly higher level of interest rates throughout most of 2000 as compared to 1999 adversely affected the Company's interest margins within its retail banking operations. Contributing positively to the retail banking earnings comparison during the current year was a 9% increase in the level of loan outstandings. Additionally, customer utilization of the Company's brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. investment services grew dramatically during the year resulting in a 91% increase in brokerage revenue. Late in the 4th quarter of 2000, German American initiated a repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. of its balance sheet within the mortgage banking component of the Company's operations to facilitate a strengthening of the overall credit quality within the loan portfolio, to allow for a reduction of the Company's dependence on wholesale funding and to balance more evenly the level of interest rate risk between loans, deposits, and other funding vehicles. Approximately $70 million of subprime, out-of-market mortgage loans were reclassified as "held for sale" in late December December: see month. . As previously announced, the Company discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: the origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real of subprime, out-of-market residential real estate lending in 1999 and the sale of these loans, which is expected to be completed in early February, will finalize fi·nal·ize tr.v. fi·nal·ized, fi·nal·iz·ing, fi·nal·iz·es To put into final form; complete or conclude: "They have jointly agreed ... the Company's exit from this segment of lending. The recognition of both an increased provision for loan loss for these types of loans and the difference between book value and market value of the loans to be sold had a significant impact on 2000 4th quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. consolidated earnings. Consolidated Net Income for 2000 was $5,288,000 or $0.50 per share as compared to 1999 Consolidated Net Income of $9,354,000 or $0.88 per share. Fourth quarter 2000 consolidated earnings reflected a Net Loss of $1,780,000 as compared to Net Income of $2,123,000 in the 4th quarter of 1999. All figures presented for both the retail-banking component and consolidated earnings have been restated to reflect the Company's annual 5% stock dividend in December 2000 and for the October October: see month. 1, 2000 merger with the parent company of Holland National Bank. In commenting on the Company's 2000 operating results, German American President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Mark Schroeder Schroeder his only wish is to play Beethoven’s music on his piano. [Comics: “Peanuts” in Horn, 542–543] See : Music Schroeder compulsively plays the works of Beethoven on his toy piano. noted, "As 2000 drew to a close, it became abundantly a·bun·dant adj. 1. Occurring in or marked by abundance; plentiful. See Synonyms at plentiful. 2. Abounding with; rich: a region abundant in wildlife. clear that the unprecedented decade of economic expansion that the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of economy, in general, has enjoyed appears to be slowing dramatically. With the Federal Reserve acknowledging the current level of economic growth is "probably very close to zero" and that an economic recession is now a possibility, we strongly believed that the time was right for decisive action in order to protect shareholder value. In light of the probability of a significant decrease in economic growth, we elected to initiate a sale of substantially all residential real estate loans within our portfolio that contained subprime characteristics. We had previously announced in 1999 that we had ceased the origination of credits of this type and the sale of the remaining loans in our portfolio significantly strengthens our overall loan portfolio quality. If, in fact, the coming years do hold the prospect of a less vibrant economy, the financial institutions that will thrive and prosper in those years will be those organizations that had the foresight (graphics, tool) Foresight - A software product from Nu Thena providing graphical modelling tools for high level system design and simulation. to reposition their balance sheets in preparation for the changing environment." Schroeder continued, "With this repositioning of German American's balance sheet, we are extremely well positioned not only to have a higher quality loan portfolio, improved liquidity, and a more balanced interest rate risk structure, but also, most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , to enhance the Company's earnings potential in 2001 and beyond. The revenue growth generated during 2000 within our Investment Services and Insurance Groups clearly demonstrates the earnings potential of these relatively new lines of business for our Company. The combination of the growth of these sources of non-interest revenue and the stability of our traditional net interest income, strengthened by this restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of our balance sheet, will be crucial in our efforts to grow earnings and shareholder value in the coming years." German American Bancorp, a $1 billion community-based bank holding company, operates 5 affiliated community banks with 28 banking offices in the eight contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. Southwestern south·west n. 1. Abbr. SW The direction or point on the mariner's compass halfway between due south and due west, or 135° west of due north. 2. An area or region lying in the southwest. 3. Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). counties of Daviess, Dubois People Dubois (also spelled DuBois or Du Bois) is the name of several people:
pike, common name for the family Esocidae, freshwater game and food fishes of Europe, Asia, and North America. The pike, the muskellunge, and the pickerel form a small but well-known group of long, thin fishes with spineless dorsal fins, , and Spencer. The Company's insurance operation consists of 5 independent agencies located throughout its market area. The Company's lines of business include retail and commercial banking, mortgage banking, trust and brokerage services, title insurance, and a full range of personal and corporate property and casualty insurance products. German American Bancorp is based in Jasper, Indiana Jasper is a city in Dubois County, Indiana, United States. The population was 12,100 at the 2000 census. The city has been the county seat of Dubois CountyGR6, since 1830, succeeding Portersville. and its common stock is traded on NASDAQ's National Market System under the symbol GABC. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. These forward looking statements include all of the statements made by the Company's President and CEO in the sixth paragraph (concerning the Company's expectations for decreased economic growth in 2001 and future periods) and the seventh paragraph (concerning the Company's positioning itself to have a higher quality loan portfolio, improved liquidity, a more balanced interest rate structure, and enhanced earnings potential, including but not limited to the potential for growth in revenue and earnings in non-interest revenue lines of business), and the statements made in the first paragraph (concerning the effective increase in cash dividends and yield). Actual experiences and results could materially differ from the Company's expectations contained in, or implied by, such statements as a result of certain risks and uncertainties, including, but not limited to, changes in economic conditions; interest rate fluctuations; competitive product and pricing pressures within the Company's markets; equity and fixed income market fluctuations; bankruptcies or other deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the financial strength of the Company's loan customers; changes in fiscal, monetary, regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. and tax policies; the continued availability of earnings and excess capital sufficient for the lawful Licit; legally warranted or authorized. The terms lawful and legal differ in that the former contemplates the substance of law, whereas the latter alludes to the form of law. A lawful act is authorized, sanctioned, or not forbidden by law. and prudent declaration and payment of cash dividends; as well as other risks and uncertainties identified in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for 1999 and from time to time in other filings of the Company made by the Company during the year 2000 with the Securities and Exchange Commission. The Company undertakes no obligation to release revisions to these forward-looking statements in order to reflect events or conditions that may occur after the date of this release.
GERMAN AMERICAN BANCORP
(unaudited, dollars in thousands except per share data)
Consolidated Balance Sheets
----------------------------------------------------------------------
December 31,
2000 1999
ASSETS
Cash and Due from Banks $ 26,987 $ 25,764
Short-term Investments 2,955 11,266
Investment Securities 226,238 230,631
Loans Held for Sale 71,372 2,845
Loans, net of Unearned Income 709,744 741,609
Allowance for Loan Losses (9,274) (9,101)
----------- -----------
Net Loans 700,470 732,508
Premises and Equipment 21,065 21,034
Other Assets 30,721 32,593
----------- -----------
TOTAL ASSETS $ 1,079,808 $ 1,056,641
----------- -----------
----------- -----------
LIABILITIES
Noninterest-Bearing Deposits $ 89,146 $ 79,159
Interest-Bearing Deposits 646,424 672,269
----------- -----------
Total Deposits 735,570 751,428
Borrowings 235,230 200,017
Other Liabilities 11,748 11,511
----------- -----------
TOTAL LIABILITIES 982,548 962,956
----------- -----------
SHAREHOLDERS' EQUITY
Common Stock and Surplus 73,670 66,832
Retained Earnings 24,353 30,800
Accumulated Other Comprehensive Income (763) (3,947)
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 97,260 93,685
----------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 1,079,808 $ 1,056,641
----------- -----------
----------- -----------
BOOK VALUE PER SHARE $ 9.27 $ 8.94(a)
END OF PERIOD SHARES OUTSTANDING 10,494,708 9,976,871(b)
(a) Restated for December 2000 stock dividend and shares issued as a
result of merger with Holland Bancorp.
(b) End of period shares outstanding were not restated for the effect
of stock dividends.
GERMAN AMERICAN BANCORP
(unaudited, dollars in thousands except per share data)
Consolidated Statements of Income
----------------------------------------------------------------------
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
INTEREST INCOME
Interest and Fees on
Loans $ 16,263 $ 15,162 $ 64,176 $ 57,423
Interest on Short-term
Investments 132 216 496 1,403
Interest on Investment
Securities 3,596 3,592 14,647 13,309
-------- -------- -------- --------
TOTAL INTEREST INCOME 19,991 18,970 79,319 72,135
-------- -------- -------- --------
INTEREST EXPENSE
Interest on Deposits 8,461 7,699 32,166 29,703
Interest on Borrowings 3,528 2,530 13,480 8,041
-------- -------- -------- --------
TOTAL INTEREST EXPENSE 11,989 10,229 45,646 37,744
-------- -------- -------- --------
Net Interest Income 8,002 8,741 33,673 34,391
Provision for Loan
Losses 1,195 779 2,231 1,749
-------- -------- -------- --------
Net Interest Income
after Provision for
Loan Losses 6,807 7,962 31,442 32,642
-------- -------- -------- --------
NONINTEREST INCOME
Other Operating Income 2,228 1,758 7,549 6,195
Net Gain / (Loss) on
Sales of Loans &
Provision for Market
Loss on Loans
Held for Sale (5,157) (24) (4,998) 196
Net Gain / (Loss) on
Sales of Securities - - (8) (6)
-------- -------- -------- --------
TOTAL NONINTEREST
INCOME (2,929) 1,734 2,543 6,385
-------- -------- -------- --------
NONINTEREST EXPENSE
Salaries and Benefits 3,865 3,841 15,454 14,308
Other Operating
Expenses 3,661 3,338 12,784 12,049
-------- -------- -------- --------
TOTAL NONINTEREST
EXPENSE 7,526 7,179 28,238 26,357
-------- -------- -------- --------
Income before Income
Taxes (3,648) 2,517 5,747 12,670
Income Tax Expense (1,868) 394 459 3,316
-------- -------- -------- --------
NET INCOME $ (1,780) $ 2,123 $ 5,288 $ 9,354
-------- -------- -------- --------
-------- -------- -------- --------
EARNINGS PER SHARE
AND DILUTED EARNINGS
PER SHARE $ (0.17) $ 0.20(a) $ 0.50 $ 0.88(a)
-------- -------- -------- --------
-------- -------- -------- --------
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 10,494,708 10,571,119(a) 10,485,818 10,632,589(a)
Diluted 10,494,718 10,576,512(a) 10,486,030 10,637,214(a)
(a) Restated for December 2000 stock dividend and shares issued as a
result of merger with Holland Bancorp.
(b) End of period shares outstanding were not restated for the effect
of stock dividends.
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