JASPER, Ind., Jan. 30, 2017 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (NASDAQ:GABC) reported that the Company has achieved record earnings for the year ended on December 31, 2016, marking the 7th consecutive year that the Company has attained this level of performance.  This record financial performance in 2016 continues a trend of exceptional performance by German American, as the Company has consistently delivered double-digit returns on shareholders' equity over the course of the past twelve fiscal years.

The Company's 2016 net income of $35.2 million, or $2.36 per share, was an increase of approximately 4%, on a per share basis, over its previous record annual net income of $30.1 million, or $2.27 per share, reported in 2015.  Fourth quarter earnings in the current year of $10.1 million, or $0.66 per share, represented an increase of approximately 14%, on a per share basis, relative to 2015 fourth quarter results of $7.7 million, or $0.58 per share.  The Company's 2016 reported net income was inclusive of ten month's operations of River Valley Bancorp, following completion of the merger transaction on March 1, 2016, and reflected merger related costs totaling approximately $4.3 million, or $2.7 million on an after-tax basis, representing approximately $0.18 per share.

The 2016 record performance was largely attributable to an increased level of net interest income and net interest margin, driven primarily by a higher level of average loans outstanding and a portfolio mix shift within the Company's securities portfolio to a higher percentage of non-taxable municipal securities.  2016 year-end loans outstanding increased by approximately $425 million, or 27%, from the prior year-end level.  The year-over-year increase in loans outstanding was largely due to the acquisition of River Valley, as well as organic growth, exclusive of the impact of the River Valley acquisition, of approximately $118 million, or 8%.

Commenting on the Company's continuation of record financial performance in 2016, Mark A. Schroeder, German American's Chairman & CEO, stated, "Our exceptionally strong 2016 financial performance was driven by a combination of both merger-related expansion and organic growth within our existing market footprint.  The acquisition of River Valley Bancorp in March provided an opportunity to enter the vibrant Southeast Indiana area.  With a well connected team of financial professionals and an established branch network along the I-65 corridor between our existing Columbus, Indiana presence and the Indiana counties of Clark and Floyd, which are a rapidly growing component of the greater Louisville, Kentucky market area, the inclusion of River Valley positions us very well for future growth within this market area.  We have already seen significant community banking opportunities within these markets, and we fully expect these new markets for German American will provide significant growth potential going forward."

Schroeder continued, "Perhaps most importantly, we were able to successfully complete the merger integration of River Valley during 2016 while remaining focused on enhancing our market share within our existing footprint.  Exclusive of River Valley, we were also able to generate approximately $118 million in year-over-year loan growth within our existing branch network, which represents the 2 nd consecutive year in which we were able to generate approximately 8% organic loan growth.  The relative level of employment within our markets in 2016 remained among the strongest in the state, and compared favorably to national statistics.  A testament to the local business environment, this combination of economic strength and stability throughout our Southern Indiana market area in 2016 afforded us the opportunity, as a banking organization, to provide our clients with a wide array of financial products and services."

The Company also announced that it was increasing the level of its regular quarterly cash dividend.  German American's Board of Directors declared a regular quarterly cash dividend of $0.19 per share, which will be payable on February 20, 2017 to shareholders of record as of February 10, 2017. This level of regular quarterly cash dividend represents approximately a 6% increase above the Company's prior quarterly cash dividend level.   This is the 5th consecutive year of annual dividend increases.

Balance Sheet Highlights

Total assets for the Company decreased to $2.956 billion at December 31, 2016, representing a decline of $23.5 million, or 3% on an annualized basis, compared with September 30, 2016 and an increase of $582.3 million compared with December 31, 2015. The year-over-year increase was largely attributable to the acquisition of River Valley Bancorp ("River Valley") and its banking subsidiary River Valley Financial Bank effective March 1, 2016.  River Valley's total assets as of the effective date of the merger totaled approximately $516.3 million.

December 31, 2016 total loans declined $12.7 million, or 3% on an annualized basis, compared with September 30, 2016 and increased $425.3 million, or 27%, compared with December 31, 2015.  The decline during the fourth quarter of 2016 was largely related to payoff activity of several commercial real estate projects in addition to pay-down activity on commercial lines of credit.  The year-over-year increase was largely attributable to the acquisition of River Valley as well as growth within the Company's existing branch network, excluding River Valley, which totaled approximately $118 million, or 8% growth.
             
End of Period Loan Balances   12/31/2016   9/30/2016   12/31/2015
(dollars in thousands)            
             
Commercial & Industrial Loans   $ 457,372     $ 469,255     $ 418,154  
Commercial Real Estate Loans   856,094     862,998     618,788  
Agricultural Loans   303,128     299,080     246,886  
Consumer Loans   193,520     186,854     147,931  
Residential Mortgage Loans   183,290     187,903     136,316  
    $ 1,993,404     $ 2,006,090     $ 1,568,075  
             

Non-performing assets totaled $4.0 million at December 31, 2016 compared to $5.5 million of non-performing assets at September 30, 2016 and $3.5 million at December 31, 2015.  Non-performing assets represented 0.14% of total assets at December 31, 2016 compared to 0.18% of total assets at September 30, 2016 and 0.15% of total assets at December 31, 2015.  Non-performing loans totaled $3.8 million at December 31, 2016 compared to $5.1 million at September 30, 2016 and $3.3 million of non-performing loans at December 31, 2015.  Non-performing loans represented 0.19% of total loans at December 31, 2016 compared to 0.25% at September 30, 2016 and 0.21% at December 31, 2015.  The decline in non-performing assets and non-performing loans during the fourth quarter of 2016 compared with September 30, 2016 levels was attributable to both a decline in non-performing loans acquired in the River Valley merger transaction and payoff of a non-accrual commercial real estate credit relationship unrelated to River Valley.
           
Non-performing Assets          
(dollars in thousands)          
  12/31/2016   9/30/2016   12/31/2015
Non-Accrual Loans $ 3,793     $ 4,906     $ 3,143  
Past Due Loans (90 days or more) 2     191     143  
  Total Non-Performing Loans 3,795     5,097     3,286  
Other Real Estate 242     355     169  
  Total Non-Performing Assets $ 4,037     $ 5,452     $ 3,455  
           
Restructured Loans $ 28     $ 50     $ 2,203  
           

The Company's allowance for loan losses totaled $14.8 million at December 31, 2016 compared to $15.2 million at September 30, 2016 and $14.4 million at December 31, 2015.  The allowance for loan losses represented 0.74% of period-end loans at December 31, 2016 compared with 0.76% of period-end loans at September 30, 2016 and 0.92% of period-end loans at December 31, 2015.  The year-over-year decline in the allowance for loan loss as a percent of total loans was the result of the acquisition of River Valley.  Under acquisition accounting treatment, loans acquired are recorded at fair value which includes a credit risk component, and therefore the allowance on loans acquired is not carried over from the seller.  The Company held a discount on acquired loans of $10.0 million as of December 31, 2016, $11.1 million at September 30, 2016 and $3.0 million at December 31, 2015.

Total deposits increased $19.9 million, or 3% on an annualized basis, as of December 31, 2016 compared with September 30, 2016 and increased $523.2 million compared with December 31, 2015.  The increase in total deposits as of December 31, 2016 compared with year-end 2015 was largely attributable to the acquisition of River Valley which had total deposits of approximately $405.4 million as of the effective date of the merger.

             
End of Period Deposit Balances   12/31/2016   9/30/2016   12/31/2015
(dollars in thousands)            
             
Non-interest-bearing Demand Deposits   $ 571,989     $ 534,620     $ 465,357  
IB Demand, Savings, and MMDA Accounts   1,399,381     1,361,522     1,054,983  
Time Deposits < $100,000   207,824     214,235     186,859  
Time Deposits > $100,000   170,357     219,286     119,177  
    $ 2,349,551     $ 2,329,663     $ 1,826,376  
             

Results of Operations Highlights - Year ended December 31, 2016

Net income for the year ended December 31, 2016 totaled $35,184,000 or $2.36 per share, an increase of $5,120,000, or approximately 4% on a per share basis, from the year ended December 31, 2015 net income of $30,064,000 or $2.27 per share.  The 2016 results of operations included ten month's operations of River Valley and were impacted by merger related charges associated with the closing of the River Valley transaction which was effective March 1, 2016.  These merger related charges totaled approximately $4,318,000, or $2,725,000 on an after tax basis, which represented approximately $0.18 per share during 2016.
                         
Summary Average Balance Sheet                        
(Tax-equivalent basis / dollars in thousands)                        
    Year Ended December 31, 2016   Year Ended December 31, 2015
                         
     Principal Balance    Income/ Expense    Yield/Rate    Principal Balance    Income/ Expense    Yield/Rate
Assets                        
Federal Funds Sold and Other                        
  Short-term Investments   $ 22,180     $ 73     0.33 %   $ 19,187     $ 13     0.07 %
Securities   723,044     21,102     2.92 %   634,232     18,018     2.84 %
Loans and Leases   1,904,779     86,756     4.55 %   1,483,752     67,109     4.52 %
Total Interest Earning Assets   $ 2,650,003     $ 107,931     4.07 %   $ 2,137,171     $ 85,140     3.98 %
                         
Liabilities                        
Demand Deposit Accounts   $ 513,199             $ 430,312          
IB Demand, Savings, and                        
  MMDA Accounts   $ 1,322,593     $ 2,515     0.19 %   $ 1,045,079     $ 1,343     0.13 %
Time Deposits   414,100     2,672     0.65 %   350,522     2,633     0.75 %
FHLB Advances and Other Borrowings   242,483     3,274     1.35 %   178,767     2,092     1.17 %
Total Interest-Bearing Liabilities   $ 1,979,176     $ 8,461     0.43 %   $ 1,574,368     $ 6,068     0.39 %
                         
Cost of Funds           0.32 %           0.28 %
Net Interest Income       $ 99,470             $ 79,072      
Net Interest Margin           3.75 %           3.70 %

During the year ended December 31, 2016, net interest income totaled $94,904,000 representing an increase of $19,352,000 or 26% from the year ended December 31, 2015 net interest income of $75,552,000.  The tax equivalent net interest margin for the year ended December 31, 2016 was 3.75% compared to 3.70% in 2015.  The increase in the net interest margin during 2016 was primarily attributable to an increase in the amount of accretion of loan discounts on acquired loans combined with an increased loan yield stemming largely from the addition of the River Valley loan portfolio and a securities portfolio mix shift to a higher percentage of total securities in non-taxable securities rather than in taxable securities, partially offset by a higher cost of funds.  Accretion of loan discounts on acquired loans contributed approximately 13 basis points to the net interest margin in 2016 compared with approximately 4 basis points in 2015.

The Company recorded a $1,200,000 provision for loan loss during 2016 compared with no provision during the year ended December 31, 2015.

During the year ended December 31, 2016, non-interest income increased approximately 17% from the year ended December 31, 2015. The increase during 2016 compared with 2015 was largely the result of the acquisition of River Valley and an increase in the level of gains on the sale of securities.  The year ended December 31, 2016 included ten months of River Valley operations while 2015 had no operations of River Valley included.
    Year Ended   Year Ended
Non-interest Income   12/31/2016   12/31/2015
(dollars in thousands)        
         
Trust and Investment Product Fees   $ 4,644     $ 3,957  
Service Charges on Deposit Accounts   5,973     4,826  
Insurance Revenues   7,741     7,489  
Company Owned Life Insurance   987     846  
Interchange Fee Income   2,532     2,127  
Other Operating Income   4,798     4,515  
  Subtotal   26,675     23,760  
Net Gains on Loans   3,359     2,959  
Net Gains on Securities   1,979     725  
Total Non-interest Income   $ 32,013     $ 27,444  

During 2016, the Company realized net gains on the sale of securities of $1,979,000 related to the sale of $100.1 million of securities compared with a net gain on the sale of securities of $725,000 in 2015 related to the sale of $18.3 million of securities.

During 2016, non-interest expense increased $15,261,000, or 25%, compared with 2015.  During 2016, the Company recorded costs related to the River Valley merger transaction that totaled $4,318,000.  The majority of the remainder of the increase in operating expenses during 2016 compared with 2015 were related to the operating costs of River Valley.

    Year Ended   Year Ended
Non-interest Expense   12/31/2016   12/31/2015
(dollars in thousands)        
         
Salaries and Employee Benefits   $ 43,961     $ 35,042  
Occupancy, Furniture and Equipment Expense   8,558     6,812  
FDIC Premiums   1,151     1,144  
Data Processing Fees   5,686     3,541  
Professional Fees   3,672     2,661  
Advertising and Promotion   2,657     3,669  
Intangible Amortization   1,062     790  
Other Operating Expenses   9,840     7,667  
Total Non-interest Expense   $ 76,587     $ 61,326  

Salaries and benefits increased $8,919,000, or 25%, in 2016 compared with 2015.  Included in the increase in 2016 was $1,934,000 of merger costs related to the settlement of various employment and benefit arrangements.  The remainder of the increase was largely related to a higher number of full-time equivalent employees stemming from the acquisition of River Valley.

Occupancy, furniture and equipment expense increased $1,746,000, or 26%, in 2016 compared with 2015.  This increase was related to the operation of River Valley's 15 branch network during 2016.

Data processing fees increased $2,145,000, or 61%, in 2016 compared with 2015.  Included in the increase was $1,288,000 of merger costs related to the consolidation of various data processing and information systems.

Professional fees increased $1,011,000, or 38%, in 2016 compared with 2015.  Included in the increase in 2016 was $770,000 of merger related costs.

Advertising and promotion declined $1,012,000, or 28%, during 2016 compared with 2015.  The decline in advertising and promotion during 2016 compared with 2015 was related to the recognition of a $1,750,000 contribution expense during 2015 in connection with the donation of a building and accompanying real estate to an economic development foundation in one of the Company's market areas.

Other operating expenses increased $2,173,000, or 28%, in 2016 compared with 2015.  Included in the increase in 2016 was $284,000 of merger related costs.  The inclusion of River Valley's operations was the primary driver of the remainder of the increase.

Results of Operations Highlights - Quarter ended December 31, 2016

Net income for the quarter ended December 31, 2016 totaled $10,065,000, or $0.66 per share, which represented a decline of approximately 1% on a per share basis compared with the third quarter 2016 net income of $10,185,000, or $0.67 per share, and represented an increase of approximately 14% on a per share basis compared with the fourth quarter 2015 net income $7,712,000 or $0.58 per share.  The results of operations during both the third and fourth quarters of 2016 fully included the operations of River Valley.
                                     
Summary Average Balance Sheet                                    
(Tax-equivalent basis / dollars in thousands)                                    
     Quarter Ended    Quarter Ended    Quarter Ended
    December 31, 2016   September 30, 2016   December 31, 2015
                                     
     Principal Balance    Income/ Expense    Yield/ Rate    Principal Balance    Income/ Expense    Yield/ Rate    Principal Balance    Income/ Expense    Yield/ Rate
Assets                                    
Federal Funds Sold and Other                                    
  Short-term Investments   $ 19,738     $ 12     0.24 %   $ 22,709     $ 25     0.44 %   $ 17,502     $ 3     0.07 %
Securities   737,619     5,582     3.03 %   734,869     5,426     2.95 %   639,352     4,697     2.94 %
Loans and Leases   2,004,983     22,734     4.51 %   1,982,291     22,475     4.51 %   1,540,491     17,294     4.46 %
Total Interest Earning Assets   $ 2,762,340     $ 28,328     4.09 %   $ 2,739,869     $ 27,926     4.07 %   $ 2,197,345     $ 21,994     3.98 %
                                     
Liabilities                                    
Demand Deposit Accounts   $ 559,597             $ 522,994             $ 444,951          
IB Demand, Savings, and                                    
  MMDA Accounts   $ 1,412,398     $ 708     0.20 %   $ 1,363,654     $ 671     0.20 %   $ 1,080,603     $ 357     0.13 %
Time Deposits   412,151     675     0.65 %   416,968     652     0.62 %   344,820     617     0.71 %
FHLB Advances and Other Borrowings   217,033     829     1.52 %   274,365     851     1.23 %   183,603     611     1.32 %
Total Interest-Bearing Liabilities   $ 2,041,582     $ 2,212     0.43 %   $ 2,054,987     $ 2,174     0.42 %   $ 1,609,026     $ 1,585     0.39 %
                                     
Cost of Funds           0.32 %           0.32 %           0.29 %
Net Interest Income       $ 26,116             $ 25,752             $ 20,409      
Net Interest Margin           3.77 %           3.75 %           3.69 %
                                     

During the quarter ended  December 31, 2016, net interest income totaled $24,889,000 representing an increase of $329,000, or 1%, from the quarter ended September 30, 2016 net interest income of $24,560,000 and an increase of $5,451,000, or 28%, compared with the quarter ended December 31, 2015 net interest income of $19,438,000.

The tax equivalent net interest margin for the quarter ended December 31, 2016 was 3.77% compared with 3.75% in the third quarter of 2016 and 3.69% in the fourth quarter of 2015.  Accretion of loan discounts on acquired loans contributed approximately 13 basis points to the net interest margin on an annualized basis in the fourth quarter of 2016, 9 basis points in the third quarter of 2016, and 2 basis points in the fourth quarter of 2015.

During the quarters ended December 31, 2016, September 30, 2016, and December 31, 2015, the Company recorded no provision for loan loss.  The lack of recording a provision during all periods was done in accordance with the Company's standard methodology for determining the adequacy of its allowance for loan loss.

During the quarter ended December 31, 2016, non-interest income totaled $8,357,000, a decline of less than 1% compared with the quarter ended September 30, 2016, and an increase of $1,933,000, or 30%, compared with the fourth quarter of 2015.  The increase during the fourth quarter of 2016 compared with the fourth quarter of 2015 was largely the result of the acquisition of River Valley.
             
    Quarter Ended   Quarter Ended   Quarter Ended
Non-interest Income   12/31/2016   9/30/2016   12/31/2015
(dollars in thousands)            
             
Trust and Investment Product Fees   $ 1,209     $ 1,191     $ 983  
Service Charges on Deposit Accounts   1,594     1,612     1,232  
Insurance Revenues   1,748     1,661     1,677  
Company Owned Life Insurance   278     247     229  
Interchange Fee Income   708     688     534  
Other Operating Income   1,515     1,523     1,174  
  Subtotal   7,052     6,922     5,829  
Net Gains on Loans   752     1,004     595  
Net Gains on Securities   553     458      
Total Non-interest Income   $ 8,357     $ 8,384     $ 6,424  
             

Net gains on sales of loans decreased $252,000, or 25%, during the fourth quarter of 2016 compared with the third quarter of 2016 and increased $157,000, or 26%, compared with the fourth quarter of 2015.  Loan sales totaled $37.9 million during the fourth quarter of 2016, compared with $34.4 million during the third quarter of 2016 and $21.9 million during the fourth quarter of 2015.  The decline in net gain during the fourth quarter of 2016 compared with the third quarter of 2016 was primarily related to the decline in value of open commitments to sell loans in future periods.

During the quarter ended December 31, 2016, non-interest expense totaled $19,355,000, an increase of $702,000, or 4%, compared with the quarter ended September 30, 2016, and an increase of $4,143,000, or 27%, compared with the fourth quarter of 2015. The increase during the fourth quarter of 2016 compared with the fourth quarter of 2015 was largely the result of the acquisition of River Valley.

             
    Quarter Ended   Quarter Ended   Quarter Ended
Non-interest Expense   12/31/2016   9/30/2016   12/31/2015
(dollars in thousands)            
             
Salaries and Employee Benefits   $ 11,604     $ 10,572     $ 8,960  
Occupancy, Furniture and Equipment Expense   2,229     2,224     1,663  
FDIC Premiums   111     373     294  
Data Processing Fees   1,079     1,261     933  
Professional Fees   797     777     588  
Advertising and Promotion   797     687     544  
Intangible Amortization   262     280     160  
Other Operating Expenses   2,476     2,479     2,070  
Total Non-interest Expense   $ 19,355     $ 18,653     $ 15,212  
             

Salaries and benefits increased $1,032,000, or 10%, during the quarter ended December 31, 2016 compared with the third quarter of 2016 and increased $2,644,000, or 30%, compared with the fourth quarter of 2015.  The increase in salaries and benefits during the fourth quarter of 2016 compared with the third quarter of 2016 was attributable to increased costs related to the Company's employee benefit plans including incentive compensation, retirement, and health insurance plans.

FDIC premiums declined $262,000, or 70%, during the quarter ended December 31, 2016 compared with the third quarter of 2016 and declined $183,000, or 62%, compared with the fourth quarter of 2015.  The decline in the fourth quarter of 2016 compared with both the third quarter of 2016 and the fourth quarter of 2015 was primarily due to a reduction in FDIC assessment rates.

Data processing fees declined $182,000, or 14%, in the fourth quarter of 2016 compared with the third quarter of 2016 and increased $146,000, or 16%, compared with the fourth quarter of 2015.  The decline during the fourth quarter of 2016 compared with third quarter of 2016 was primarily related to charges associated with the acquisition of River Valley that were incurred during the third quarter of 2016.

About German American

German American Bancorp, Inc., is a NASDAQ-traded (symbol: GABC) bank holding company based in Jasper, Indiana.  German American, through its banking subsidiary German American Bancorp, operates 51 banking offices in 19 contiguous southern Indiana counties and one northern Kentucky county. The Company also owns an investment brokerage subsidiary (German American Investment Services, Inc.) and a full line property and casualty insurance agency (German American Insurance, Inc.).

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may be deemed "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act 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 this press release. Factors that could cause actual experience to differ from the expectations expressed or implied in this press release include the unknown future direction of interest rates and the timing and magnitude of any changes in interest rates; changes in competitive conditions; the introduction, withdrawal, success and timing of asset/liability 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; potential deterioration in general economic conditions, either nationally or locally, resulting in, among other things, credit quality deterioration; capital management activities, including possible future sales of new securities, or possible repurchases or redemptions by the Company of outstanding debt or equity securities; risks of expansion through acquisitions and mergers, such as unexpected credit quality problems of the acquired loans or other assets, unexpected attrition of the customer base of the acquired institution or branches, and difficulties in integration of the acquired operations; factors driving impairment charges on investments; the impact, extent and timing of technological changes; potential cyber-attacks, information security breaches and other criminal activities; litigation liabilities, including related costs, expenses, settlements and judgments, or the outcome of matters before regulatory agencies, whether pending or commencing in the future; actions of the Federal Reserve Board; changes in accounting principles and interpretations; potential increases of federal deposit insurance premium expense, and possible future special assessments of FDIC premiums, either industry wide or specific to the Company's banking subsidiary; actions of the regulatory authorities under the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Federal Deposit Insurance Act and other possible legislative and regulatory actions and reforms; the continued availability of earnings and excess capital sufficient for the lawful and prudent declaration and payment of cash dividends; and other risk factors expressly identified in the Company's filings with the United States Securities and Exchange Commission. Such statements reflect our views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements. It is intended that these forward-looking statements speak only as of the date they are made. We do not undertake any obligation to release publicly any revisions to these forward-looking statements to reflect future events or circumstances or to reflect the occurrence of unanticipated events.

GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
           
Consolidated Balance Sheets
           
  December 31, 2016   September 30, 2016   December 31, 2015
ASSETS          
    Cash and Due from Banks $ 48,467     $ 38,329     $ 36,062  
    Short-term Investments 16,349     16,455     15,947  
    Interest-bearing Time Deposits with Banks     744      
    Investment Securities 709,786     732,911     637,935  
           
    Loans Held-for-Sale 15,273     12,967     10,762  
           
    Loans, Net of Unearned Income 1,989,955     2,002,380     1,564,347  
    Allowance for Loan Losses (14,808 )   (15,154 )   (14,438 )
      Net Loans 1,975,147     1,987,226     1,549,909  
           
    Stock in FHLB and Other Restricted Stock 13,048     13,048     8,571  
    Premises and Equipment 48,230     48,074     37,817  
    Goodwill and Other Intangible Assets 56,893     56,767     21,819  
    Other Assets 72,801     73,019     54,879  
  TOTAL ASSETS $ 2,955,994     $ 2,979,540     $ 2,373,701  
           
LIABILITIES          
    Non-interest-bearing Demand Deposits $ 571,989     $ 534,620     $ 465,357  
    Interest-bearing Demand, Savings, and Money Market Accounts 1,399,381     1,361,522     1,054,983  
    Time Deposits 378,181     433,521     306,036  
      Total Deposits 2,349,551     2,329,663     1,826,376  
           
    Borrowings 258,114     279,110     273,323  
    Other Liabilities 18,062     29,776     21,654  
  TOTAL LIABILITIES 2,625,727     2,638,549     2,121,353  
           
SHAREHOLDERS' EQUITY          
    Common Stock and Surplus 187,005     186,519     123,424  
    Retained Earnings 149,666     142,347     125,112  
    Accumulated Other Comprehensive Income (6,404 )   12,125     3,812  
  TOTAL SHAREHOLDERS' EQUITY 330,267     340,991     252,348  
           
  TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 2,955,994     $ 2,979,540     $ 2,373,701  
           
END OF PERIOD SHARES OUTSTANDING 15,261,431     15,257,849     13,278,824  
           
TANGIBLE BOOK VALUE PER SHARE (1) $ 17.91     $ 18.63     $ 17.36  
           
(1) Tangible Book Value per Share is defined as Total Shareholders' Equity less Goodwill and Other Intangible Assets divided by End of Period Shares Outstanding.

GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
                     
Consolidated Statements of Income
                     
    Three Months Ended   Year Ended
    December 31, 2016   September 30, 2016   December 31, 2015   December 31, 2016   December 31, 2015
INTEREST INCOME                  
   Interest and Fees on Loans $ 22,557     $ 22,311     $ 17,202     $ 86,202     $ 66,740  
   Interest on Short-term Investments and Time Deposits 12     25     3     74     13  
   Interest and Dividends on Investment Securities 4,532     4,398     3,818     17,089     14,867  
  TOTAL INTEREST INCOME 27,101     26,734     21,023     103,365     81,620  
                     
INTEREST EXPENSE                  
   Interest on Deposits 1,383     1,323     974     5,187     3,976  
   Interest on Borrowings 829     851     611     3,274     2,092  
  TOTAL INTEREST EXPENSE 2,212     2,174     1,585     8,461     6,068  
                     
   NET INTEREST INCOME 24,889     24,560     19,438     94,904     75,552  
   Provision for Loan Losses             1,200      
   NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES 24,889     24,560     19,438     93,704     75,552  
                     
NON-INTEREST INCOME                  
   Net Gain on Sales of Loans 752     1,004     595     3,359     2,959  
   Net Gain on Securities 553     458         1,979     725  
   Other Non-interest Income 7,052     6,922     5,829     26,675     23,760  
  TOTAL NON-INTEREST INCOME 8,357     8,384     6,424     32,013     27,444  
                     
NON-INTEREST EXPENSE                  
   Salaries and Benefits 11,604     10,572     8,960     43,961     35,042  
   Other Non-interest Expenses 7,751     8,081     6,252     32,626     26,284  
  TOTAL NON-INTEREST EXPENSE 19,355     18,653     15,212     76,587     61,326  
                     
   Income before Income Taxes 13,891     14,291     10,650     49,130     41,670  
   Income Tax Expense 3,826     4,106     2,938     13,946     11,606  
                     
NET INCOME $ 10,065     $ 10,185     $ 7,712     $ 35,184     $ 30,064  
                     
BASIC EARNINGS PER SHARE $ 0.66     $ 0.67     $ 0.58     $ 2.36     $ 2.27  
DILUTED EARNINGS PER SHARE $ 0.66     $ 0.67     $ 0.58     $ 2.36     $ 2.27  
                     
WEIGHTED AVERAGE SHARES OUTSTANDING 15,258,378     15,257,814     13,275,915     14,926,091     13,255,002  
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING 15,258,378     15,257,814     13,280,058     14,927,410     13,258,916  

GERMAN AMERICAN BANCORP, INC.
(unaudited, dollars in thousands except per share data)
                     
    Three Months Ended   Year Ended
    December 31,   September 30,   December 31,   December 31,   December 31,
    2016   2016   2015   2016   2015
EARNINGS PERFORMANCE RATIOS                  
  Annualized Return on Average Assets 1.36 %   1.38 %   1.33 %   1.24 %   1.33 %
  Annualized Return on Average Equity 11.90 %   12.07 %   12.36 %   10.94 %   12.47 %
  Net Interest Margin 3.77 %   3.75 %   3.69 %   3.75 %   3.70 %
  Efficiency Ratio (1) 56.15 %   54.64 %   56.69 %   58.25 %   57.57 %
  Net Overhead Expense to Average Earning Assets (2) 1.59 %   1.50 %   1.60 %   1.68 %   1.59 %
                     
ASSET QUALITY RATIOS                  
  Annualized Net Charge-offs to Average Loans 0.07 %   0.03 %   0.09 %   0.04 %   0.03 %
  Allowance for Loan Losses to Period End Loans 0.74 %   0.76 %   0.92 %        
  Non-performing Assets to Period End Assets 0.14 %   0.18 %   0.15 %        
  Non-performing Loans to Period End Loans 0.19 %   0.25 %   0.21 %        
  Loans 30-89 Days Past Due to Period End Loans 0.36 %   0.39 %   0.22 %        
                     
SELECTED BALANCE SHEET & OTHER FINANCIAL DATA                  
  Average Assets $ 2,970,408     $ 2,943,564     $ 2,327,377     $ 2,841,096     $ 2,267,555  
  Average Earning Assets $ 2,762,340     $ 2,739,869     $ 2,197,345     $ 2,650,003     $ 2,137,171  
  Average Total Loans $ 2,004,983     $ 1,982,291     $ 1,540,491     $ 1,904,779     $ 1,483,752  
  Average Demand Deposits $ 559,597     $ 522,994     $ 444,951     $ 513,199     $ 430,312  
  Average Interest Bearing Liabilities $ 2,041,583     $ 2,054,987     $ 1,609,026     $ 1,979,176     $ 1,574,368  
  Average Equity $ 338,270     $ 337,449     $ 249,661     $ 321,520     $ 241,017  
                     
  Period End Non-performing Assets (3) $ 4,037     $ 5,452     $ 3,455          
  Period End Non-performing Loans (4) $ 3,795     $ 5,097     $ 3,286          
  Period End Loans 30-89 Days Past Due (5) $ 7,109     $ 7,776     $ 3,460          
                     
  Tax Equivalent Net Interest Income $ 26,116     $ 25,752     $ 20,409     $ 99,470     $ 79,072  
  Net Charge-offs during Period $ 346     $ 150     $ 332     $ 830     $ 491  
                     
                     
(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 Expense less Total Non-interest Income.
(3 ) Non-performing assets are defined as Non-accrual Loans, Loans Past Due 90 days or more, Restructured Loans, and Other Real Estate Owned.
(4 ) Non-performing loans are defined as Non-accrual Loans, Loans Past Due 90 days or more, and Restructured Loans.
(5 ) Loans 30-89 days past due and still accruing.
For additional information, contact:Mark A Schroeder, Chairman & Chief Executive Officer of German American Bancorp, Inc.Bradley M Rust, Executive Vice President/CFO of German American Bancorp, Inc.(812) 482-1314