German American Bancorp Reports Fourth Quarter and 2004 Earnings and Declares Quarterly Cash Dividend.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 (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. ) announced today that its earnings for the fourth quarter and the year 2004, exclusive of the effect of an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge related to the Company's investment holdings of preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. in various government sponsored enterprises, continued the trend of strong performance improvement experienced in recent quarters. The Company elected to record, in the fourth quarter of 2004 a non-cash, other-than-temporary impairment charge of approximately $2.4 million after-tax, or $0.23 per share, related to certain investments in Federal Home Loan Mortgage Corporation Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, privately owned, government-sponsored organization that uses private capital to buy home mortgages as a means to help lower housing costs. ("FHLMC See Federal Home Loan Mortgage Corporation. ") and Federal National Mortgage Association ("FNMA FNMA abbr. Federal National Mortgage Association Noun 1. FNMA - a federally chartered corporation that purchases mortgages Fannie Mae, Federal National Mortgage Association ") preferred stock. As a result of recent events at FHLMC and FNMA, the Company decided to record the unrealized losses Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. in these securities as an other-than-temporary impairment in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . The Company's net income, inclusive of inclusive of prep. Taking into consideration or account; including. the impairment charge, for the year ended December 31, 2004 was $7,239,000, or $0.66 per share, compared to 2003 net income of $8,168,000, or $0.73 per share. Fourth quarter reported earnings in 2004 were $579,000, or $.05 per share, with the reported earnings for the year earlier same period of $1,534,000, or $0.14 per share. Exclusive of the recording of the impairment charge, 2004 annual earnings would have been $9,669,000, or $0.89 per share, while fourth quarter earnings would have been $3,009,000, or $0.28 per share. The earnings comparison was positively impacted by continuing improvements in the Company's net interest income and net interest margin. Net interest income for the fourth quarter of 2004 exceeded the net interest income of the immediately preceding quarterly period for the fifth consecutive quarter. These increases, coupled with sustained growth of other operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. within the Company's insurance and financial advisory services advisory services advisory services provided to the public, in their capacity as owners and managers of animals, are an important part of veterinary science. They may be provided by government bureaux, by commercial companies who deal in pharmaceuticals or animals or animal segments, were important contributors to the quarterly and annual performance improvement. Commenting on the Company's 2004 operating results, Mark A. Schroeder, 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. , stated, "On a go-forward basis, we're very pleased with the strong fundamentals underlying our 2004 results. In addition to ongoing improvement in both our net interest income and net interest margin, revenue derived from our financial advisory and insurance operations grew to $6.7 million in 2004, increasing by 26% from prior year levels. Furthermore, we have been able to generate this growth in revenue with no discernable increase in total 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. as evidenced by a decline in salaries and benefits expense during 2004 and only a modest increase in other operating expenses, which was almost totally attributable to the costs associated with compliance with the requirements of Section 404 of the Sarbanes Oxley Act. Given the strength of the aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. trends and the anticipated earnings momentum driven by our balance sheet structure in the face of the current rising interest rate environment, we believe German American is very well positioned for the coming year." Schroeder continued, "While we obviously would have preferred to not have had our 2004 reported financial results affected by the securities impairment charge, we elected to record the other-than-temporary impairment charge because we believe it is a proper, conservative interpretation of current accounting literature. Having said that, we do not believe the current market value of these securities reflects their true long-term value. We have held these investment grade, adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. preferred stocks as part of our available-for-sale investment portfolio for the past five years, and believe that the future market value of these securities will be positively impacted when the current issues, involving FHLMC and FNMA as government sponsored enterprises, are resolved. In the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , the current yield derived from these securities continues to represent an attractive return." The Company also announced that its Board had declared a regular quarterly cash dividend of $0.14 per share which will be payable on February 20, 2005 to shareholders of record as of February 10, 2005. German American Bancorp is a 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 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. . The Company's Common Stock is traded on NASDAQ's National Market System under the symbol GABC. The Company operates five affiliated community banks with 27 retail banking offices in the eight contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. Southwestern Indiana counties of Daviess, Dubois, Gibson, Knox, 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 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. The Company's statements in this press release regarding its expectation of continued improvements in operating performance and regarding the future market value of securities issued by FHLMC and FNMA are "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. Changes in the Company's net interest income and net interest margin may vary materially from those that are presently expected, if interest rates should decline or not increase. Other factors that could cause net interest income, net interest margin and earnings to vary from those that are expected, or those that have historically been achieved in recent periods, include the effects of 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 business initiatives and business 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 actions and reforms. Changes in the market value of securities issued by FHLMC and FNMA may vary materially from current expectations due to changes in the earnings and financial condition of those companies and due to securities market conditions. These forward-looking statements speak only as of the date of this press release and the Company 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
----------------------------------------------------------------------
December 31,
2004 2003
----------- -----------
ASSETS
Cash and Due from Banks $23,312 $28,729
Short-term Investments 24,354 3,804
Investment Securities 194,994 213,210
Loans Held-for-Sale 3,122 1,416
Loans, Net of Unearned Income 629,793 611,866
Allowance for Loan Losses (8,801) (8,265)
----------- -----------
Net Loans 620,992 603,601
Stock in FHLB and Other Restricted Stock 13,542 12,944
Premises and Equipment 20,231 21,605
Other Assets 41,547 40,637
----------- -----------
TOTAL ASSETS $942,094 $925,946
=========== ===========
LIABILITIES
Non-interest-bearing Demand Deposits $123,127 $112,689
Interest-bearing Demand, Savings, and
Money Market Accounts 305,341 266,652
Time Deposits under $100,000 252,332 283,959
Time Deposits $100,000 or more and
Brokered Deposits 69,583 53,833
----------- -----------
Total Deposits 750,383 717,133
Borrowings 95,614 112,559
Other Liabilities 12,428 13,128
----------- -----------
TOTAL LIABILITIES 858,425 842,820
----------- -----------
SHAREHOLDERS' EQUITY
Common Stock and Surplus 77,715 78,465
Retained Earnings 5,778 4,653
Accumulated Other Comprehensive Income 176 8
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 83,669 83,126
----------- -----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $942,094 $925,946
=========== ===========
BOOK VALUE PER SHARE $7.68 $7.60
END OF PERIOD SHARES OUTSTANDING 10,898,241 10,932,882
Consolidated Statements of Income
----------------------------------------------------------------------
Three Months Ended Year Ended
December 31, December 31,
2004 2003 2004 2003
----------- ----------- ----------- -----------
INTEREST INCOME
Interest and Fees on
Loans $9,977 $9,951 $39,257 $41,781
Interest on Short-
term Investments 60 66 129 270
Interest and Dividends
on Investment
Securities 2,052 2,092 8,324 8,568
----------- ----------- ----------- -----------
TOTAL INTEREST INCOME 12,089 12,109 47,710 50,619
----------- ----------- ----------- -----------
INTEREST EXPENSE
Interest on Deposits 2,810 3,246 11,747 13,997
Interest on
Borrowings 1,153 1,473 4,724 7,087
----------- ----------- ----------- -----------
TOTAL INTEREST
EXPENSE 3,963 4,719 16,471 21,084
----------- ----------- ----------- -----------
Net Interest Income 8,126 7,390 31,239 29,535
Provision for Loan
Losses 487 316 2,015 811
----------- ----------- ----------- -----------
Net Interest Income
after Provision for
Loan Losses 7,639 7,074 29,224 28,724
----------- ----------- ----------- -----------
NON-INTEREST INCOME
Other Operating
Income 3,196 3,113 12,323 10,266
Net Gain on Sales of
Loans and Related
Assets 152 154 975 2,588
Net Gain/(Loss) on
Securities (3,683) 3 (3,678) 80
----------- ----------- ----------- -----------
TOTAL NON-INTEREST
INCOME (335) 3,270 9,620 12,934
----------- ----------- ----------- -----------
NON-INTEREST EXPENSE
Salaries and
Benefits 4,170 4,718 17,814 18,062
Net Loss on
Extinguishment of
Borrowings - 984 - 1,898
Other Operating
Expenses 2,984 3,131 12,795 12,259
----------- ----------- ----------- -----------
TOTAL NON-INTEREST
EXPENSE 7,154 8,833 30,609 32,219
----------- ----------- ----------- -----------
Income before Income
Taxes 150 1,511 8,235 9,439
Income Tax Expense
(Benefit) (429) (23) 996 1,271
----------- ----------- ----------- -----------
NET INCOME $579 $1,534 $7,239 $8,168
=========== =========== =========== ===========
EARNINGS PER SHARE &
DILUTED EARNINGS PER
SHARE $0.05 $0.14 $0.66 $0.73
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 10,898,241 10,953,785 10,914,622 11,176,766
Diluted 10,930,708 11,002,990 10,948,131 11,222,343
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