Profile: German American Bancorp Inc (GABC.OQ)
14 Mar 2014
German American Bancorp, Inc. is a financial services holding company. The principal subsidiary of the Company is its banking subsidiary, German American Bancorp (the Bank), which operates through 34 retail banking offices in 12 contiguous Southern Indiana counties. It operates in three primary segments: core banking, trust and investment advisory services, and insurance operations. The Bank owns a trust, brokerage, and financial planning subsidiary, which operates from its banking offices, and a property and casualty insurance agency with insurance agency offices throughout its market area. Its lines of business include retail and commercial banking, mortgage banking, financial planning, full-service brokerage and trust administration, and a range of personal and corporate insurance products. Effective January 1, 2011, the Company acquired American Community Bancorp, Inc., and its subsidiary, Bank of Evansville. In July 2011, the Company opened a financial services center in Bloomington. In October 2013, the Company merged with United Commerce Bancorp (United).
The core banking segment involves attracting deposits from the general public and using such funds to originate consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, primarily in the Company’s local markets. The core banking segment also involves the sale of residential mortgage loans in the secondary market. The trust and investment advisory services segment involves providing trust, investment advisory, and brokerage services to customers. The insurance segment offers a range of personal and corporate property and casualty insurance products, primarily in the Company’s banking subsidiary’s local markets.
As of December 31, 2011, the Company’s loan portfolio included commercial and industrial loans and leases, commercial real estate loans, agricultural loans, consumer loans and residential mortgage loans. As of December 31, 2011, commercial real estate loans constituted 40% of net loans. The Company’s commercial lending is offered to various industries, including hotel, agribusiness and manufacturing, as well as health care, wholesale, and retail services.
The Company’s securities portfolio primarily consists of money market securities, uncollateralized federal agency securities, municipal obligations of state and political subdivisions, and mortgage-backed securities issued by the United States Government agencies. Money market securities include federal funds sold, interest-bearing balances with banks, and other short-term investments.
Sources of Funds
The Company’s primary source of funding is its base of core customer deposits. Core deposits consist of demand deposits, savings, interest-bearing checking, money market accounts, and certificates of deposit of less than $100,000. Other sources of funds are certificates of deposit of $100,000 or more, brokered deposits, overnight borrowings from other financial institutions and securities sold under agreement to repurchase. Federal Home Loan Bank advances and other borrowings represent the Company’s source of other funding.
German American Bancorp Inc
711 Main Street, Box 810
JASPER IN 47546