German American Bancorp, Inc. Reports Increased Second Quarter and Record Year-to-Date Earnings.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. . -- 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, Inc., 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. , (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :GABC GABC The German-American Business Council of Boston, Inc. ) today reported increased second quarter earnings and record year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. 2006 earnings in terms of both net income and earnings per share. The Company's second quarter 2006 net income was $2,488,000, or $0.23 per share, compared to $2,408,000, or $0.22 per share during the second quarter of last year. On a year-to-date basis, 2006 earnings were $5,051,000, or $0.46 per share, which represents the highest level of six months earnings recorded in the Company's history. 2006 earnings increased by approximately 5% from 2005 reported net income and earnings per share which were $4,819,000 and $0.44 per share, respectively. Contributing to the Company's solid second quarter earnings were a $923,000 increase in the level of net interest income and additional non-interest income of $171,000, as well as a significant reduction totaling $637,000 in the provision for loan loss related to improvements in the quality of the Company's loan portfolio. An offsetting factor to these positive earnings contributors of $1,731,000 was a $1,406,000 increase of non-interest related operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. . On a year-to-date basis, the Company's strong 2006 financial results were reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of a similar comparison with net interest income increasing by $1,800,000, an improvement of non-interest income of $224,000, and a reduced level of provision for loan losses of $829,000. Partially offsetting these $2,853,000 of year-to-date earnings enhancements, non-interest related operating expenses were $2,171,000 higher in 2006 relative to that recorded during the first six months of 2005. The Company's 2006 second quarter and year-to-date financial results are reflective of the operating results of the recent acquisitions of PCB PCB: see polychlorinated biphenyl. PCB in full polychlorinated biphenyl Any of a class of highly stable organic compounds prepared by the reaction of chlorine with biphenyl, a two-ring compound. Holding Company and Stone City Bancshares, Inc. "The strong second quarter financial performance marked the sixth consecutive quarter of solid improvement in reported net income and earnings per share relative to the same quarterly period of the prior fiscal year," stated Mark A. 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. , President & Chief Executive Officer. "This impressive trend in improved operating performance is directly attributable to our ability to successfully position the Company to benefit from the recent return to a more normal interest rate and economic environment. We're we're Contraction of we are. we're we are extremely pleased with our record level of year-to-date financial performance and are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that our first half results will provide the impetus Impetus is a stimulus or impulse, a moving force that sparks momentum. Impetus may also refer to:
Schroeder continued, "In addition to the strength of our operating results, we are also very well positioned in terms of second quarter balance sheet growth driven by annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. linked-quarter total loan growth of 13%, including annualized commercial loan growth of 19%. Furthermore, our loan pipeline indicates a continuation of strong loan growth potential during the upcoming quarter. This combination of strong financial performance and promising prospects for continued loan growth bodes well in terms of our future performance levels." The Company also announced its Board of Directors has declared a regular quarterly cash dividend of $0.14 per share which will be payable on August 20, 2006 to shareholders of record as of August 10, 2006. German American Bancorp, Inc. is a $1 billion financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. holding company based in Jasper, Indiana. The Company's Common Stock is traded on NASDAQ's National Market System under the symbol GABC. Including Stone City Bank, which was acquired January January: see month. 1, 2006, the Company now operates six affiliated community banks with 29 retail banking offices in the nine 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:
1 City (1990 pop. 26,763), Marion co., central Ind., a residential suburb of Indianapolis, on the West Fork of the White River. It has light manufacturing. 2 City (1990 pop. 65,608), seat of Douglas co., NE Kans. , Martin, Perry, Pike pike, in zoology 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 also operates German American Financial Advisors & Trust Company, a trust, brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. and financial planning Financial planning Evaluating the investing and financing options available to a firm. Planning includes attempting to make optimal decisions, projecting the consequences of these decisions for the firm in the form of a financial plan, and then comparing future performance against subsidiary operating from the banking offices of the bank subsidiaries and German American Insurance, Inc., a full-line property and casualty insurance subsidiary with five independent insurance offices throughout its market area. The Company's lines of business include retail and commercial banking, mortgage banking, comprehensive wealth management, full service brokerage and trust administration, title insurance, and a full range of personal and corporate insurance products. 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. German American's statements in this press release regarding financial performance, including loan growth potential and asset quality, may be deemed to include "forward-looking statements" within the meaning of 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. Readers are cautioned that, by their nature, forward-looking statements are based on assumptions and are subject to risks, uncertainties, and other factors. Actual results and experience could differ materially from the anticipated results or other expectations expressed or implied by these forward-looking statements as a result of a number of factors, including but not limited to, those discussed in the press release. Factors which could cause actual results and experience to differ from these expectations include changes in interest rates; changes in competitive conditions; the introduction, withdrawal, success and timing of asset/liability management Asset/Liability Management A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management. strategies or of mergers and acquisitions and other business initiatives and strategies; changes in customer borrowing, repayment, investment and deposit practices; changes in fiscal, monetary and tax policies; changes in financial and capital markets; changes in general economic conditions, either nationally or regionally, resulting in, among other things, credit quality deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. ; capital management activities; actions of the Federal Reserve Board; changes in accounting principles and interpretations; and legislative and 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. actions and reforms. These forward-looking statements speak only as of the date of this press release and German American undertakes no obligation to update any such forward-looking statement to reflect events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or that occur after the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" .
GERMAN AMERICAN BANCORP
(unaudited, dollars in thousands except per share data)
Consolidated Balance Sheets
----------------------------------------------------------------------
June 30,
2006 2005
----------- -----------
ASSETS
Cash and Due from Banks $26,149 $17,996
Short-term Investments 5,424 7,685
Investment Securities 206,218 191,131
Loans Held-for-Sale 2,261 3,038
Loans, Net of Unearned Income 705,787 625,443
Allowance for Loan Losses (9,019) (9,501)
----------- -----------
Net Loans 696,768 615,942
Stock in FHLB and Other Restricted Stock 14,483 13,829
Premises and Equipment 23,124 19,440
Goodwill and Other Intangible Assets 12,710 3,962
Other Assets 37,403 36,204
----------- -----------
TOTAL ASSETS $1,024,540 $909,227
=========== ===========
LIABILITIES
Non-interest-bearing Demand Deposits $126,011 $120,656
Interest-bearing Demand, Savings, and
Money Market Accounts 320,605 281,123
Time Deposits 358,157 307,819
----------- -----------
Total Deposits 804,773 709,598
Borrowings 119,717 104,211
Other Liabilities 11,322 11,729
----------- -----------
TOTAL LIABILITIES 935,812 825,538
----------- -----------
SHAREHOLDERS' EQUITY
Common Stock and Surplus 79,202 76,490
Retained Earnings 11,362 7,556
Accumulated Other Comprehensive Loss (1,836) (357)
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 88,728 83,689
----------- -----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $1,024,540 $909,227
=========== ===========
END OF PERIOD SHARES OUTSTANDING 11,008,821 10,824,223
BOOK VALUE PER SHARE $8.06 $7.73
Consolidated Statements of Income
----------------------------------------------------------------------
Three Months Ended Six Months Ended
June 30, June 30,
2006 2005 2006 2005
----------- ----------- ----------- -----------
INTEREST INCOME
Interest and Fees on
Loans $12,813 $10,074 $25,195 $19,988
Interest on Short-
term Investments 136 52 262 139
Interest and
Dividends on
Investment
Securities 2,428 2,046 4,668 4,049
----------- ----------- ----------- -----------
TOTAL INTEREST INCOME 15,377 12,172 30,125 24,176
----------- ----------- ----------- -----------
INTEREST EXPENSE
Interest on Deposits 5,068 3,082 9,550 5,971
Interest on
Borrowings 1,411 1,115 2,801 2,231
----------- ----------- ----------- -----------
TOTAL INTEREST
EXPENSE 6,479 4,197 12,351 8,202
----------- ----------- ----------- -----------
Net Interest Income 8,898 7,975 17,774 15,974
Provision for Loan
Losses 54 691 344 1,173
----------- ----------- ----------- -----------
Net Interest Income
after Provision
for Loan Losses 8,844 7,284 17,430 14,801
----------- ----------- ----------- -----------
NON-INTEREST INCOME
Net Gain on Sales of
Loans and Related
Assets 454 229 667 465
Net Gain/(Loss) on
Securities - - - -
Other Non-interest
Income 3,274 3,328 6,755 6,733
----------- ----------- ----------- -----------
TOTAL NON-INTEREST
INCOME 3,728 3,557 7,422 7,198
----------- ----------- ----------- -----------
NON-INTEREST EXPENSE
Salaries and
Benefits 5,367 4,531 10,551 9,127
Other Non-interest
Expenses 3,747 3,177 7,266 6,519
----------- ----------- ----------- -----------
TOTAL NON-INTEREST
EXPENSE 9,114 7,708 17,817 15,646
----------- ----------- ----------- -----------
Income before Income
Taxes 3,458 3,133 7,035 6,353
Income Tax Expense 970 725 1,984 1,534
----------- ----------- ----------- -----------
NET INCOME $2,488 $2,408 $5,051 $4,819
=========== =========== =========== ===========
EARNINGS PER SHARE &
DILUTED EARNINGS PER
SHARE $0.23 $0.22 $0.46 $0.44
WEIGHTED AVERAGE SHARES
OUTSTANDING 10,993,898 10,832,135 10,993,567 10,863,370
DILUTED WEIGHTED
AVERAGE SHARES
OUTSTANDING 11,000,333 10,836,778 11,002,189 10,873,771
EARNINGS PERFORMANCE RATIOS
Annualized Return on
Average Assets 0.98% 1.05% 1.00% 1.05%
Annualized Return on
Average Equity 11.36% 11.74% 11.53% 11.56%
Net Interest Margin 3.99% 3.93% 4.01% 3.93%
Efficiency Ratio (1) 70.57% 65.02% 69.15% 65.69%
Net Overhead Expense
to Average Earning
Assets (2) 2.33% 1.96% 2.26% 1.99%
ASSET QUALITY RATIOS
Annualized Net
Charge-offs to
Average Loans 0.44% 0.10% 0.31% 0.15%
Allowance for Loan
Losses to Period End
Loans 1.28% 1.52%
Non-performing Assets
to Period End Assets 1.24% 1.69%
Non-performing Loans
to Period End Loans 1.66% 2.42%
(1) Efficiency Ratio is defined as Non-interest Expense divided by the
sum of Net Interest Income, on a tax equivalent basis, and Non-
interest Income.
(2) Net Overhead Expense is defined as Total Non-interest Income less
Total Non-interest Expense.
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