About German American Bancorp

German American Bancorp, Inc. operates as a financial holding company. The company, through its banking subsidiary German American Bank, operates various banking offices in 20 contiguous southern Indiana counties and 14 counties in Kentucky. 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.). The company’s lines of business include retail and commercial banking, wealth management services, and insurance operations. The company’s retail and commercial banking business involves attracting deposits from the general public and using those funds to originate consumer, commercial and agricultural, commercial and agricultural real estate, and residential mortgage loans, primarily in the company’s local markets. These core banking activities also include the sale of residential mortgage loans in the secondary market. The company’s wealth management services involve providing trust, investment advisory, brokerage and retirement planning services to customers. In the company’s insurance operations, the company offers a full range of personal and corporate property and casualty insurance products, primarily in the company’s banking subsidiary’s local markets. Substantially all of the company’s revenues are derived from customers located in, and substantially all of its assets are located in, the United States. Segments The company operates through three business segments: Core Banking, Trust and Investment Advisory Services, and Insurance Operations. 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 Wealth Management segment involves providing trust, investment advisory, brokerage and retirement planning services to customers. The Insurance segment offers a full range of personal and corporate property and casualty insurance products, primarily in the company’s banking subsidiary’s local markets. The Core Banking segment is comprised by the company’s banking subsidiary, German American Bank, which operates through various banking offices. Net interest income from loans and investments funded by deposits and borrowings is the primary revenue for the Core Banking segment. The Wealth Management segment’s revenues are primarily comprised fees generated by the trust operations of the company’s banking subsidiary and by German American Investment Services, Inc. These fees are derived by providing trust, investment advisory, brokerage and retirement planning services to its customers. The Insurance segment primarily consists of German American Insurance, Inc., which provides a full line of personal and corporate insurance products. Commissions derived from the sale of insurance products are the primary source of revenue for the Insurance segment. Investments The company’s securities portfolio primarily consists of money market securities, collateralized and uncollateralized federal agency securities, municipal obligations of state and political subdivisions, and mortgage-backed securities and collateralized mortgage obligations (MBS/CMO - Residential) issued by the U.S. government agencies. Money market securities include federal funds sold, interest-bearing balances with banks, and other short-term investments. Loans As of December 31, 2023, the company’s loans included commercial loans, such as commercial and industrial loans, commercial real estate loans, agricultural loans, and leases; and retail loans, such as home equity loans, consumer loans, credit cards, and residential mortgage loans. Regulation and Supervision The company is subject to regulation and supervision by the Board of Governors of the Federal Reserve System (‘FRB’) under the Bank Holding Company Act of 1956, as amended (‘BHC Act’), and is required to file with the FRB annual reports and such additional information as the FRB may require. The bank is under the supervision of and subject to examination by the Indiana Department of Financial Institutions (‘DFI’), and the Federal Deposit Insurance Corporation (‘FDIC’). Under FRB policy and the Dodd-Frank Wall Street Reform and Consumer Protection Act, a complex and wide-ranging statute (the ‘Dodd-Frank Act’), the company is required to act as a source of financial and managerial strength to the bank, and to commit resources to support the bank, even in circumstances where the company might not do so absent such a requirement. In order to continue as a financial holding company, the company must continue to be well-capitalized, well-managed and maintain compliance with the Community Reinvestment Act. Insured depository institutions, such as the bank are also prohibited under the FDICIA from making capital distributions, including the payment of dividends, if, after making such distribution, the institution would become undercapitalized. The Dodd-Frank Act made a variety of changes that affect the business and affairs of the company and the bank in other ways. The U.S. Treasury Department has issued a number of regulations that apply various requirements of the USA PATRIOT Act of 2001 to financial institutions, such as the bank. The bank is subject to a wide variety of other laws with respect to the operation of its businesses, and regulations adopted under those laws, including but not limited to the Truth in Lending Act, Truth in Savings Act, Equal Credit Opportunity Act, Electronic Funds Transfer Act, Fair Housing Act, Home Mortgage Disclosure Act, Fair Debt Collection Practices Act, Fair Credit Reporting Act, Expedited Funds Availability (Regulation CC), Reserve Requirements (Regulation D), Insider Transactions (Regulation O), Privacy of Consumer Information (Regulation P), Margin Stock Loans (Regulation U), Right To Financial Privacy Act, Flood Disaster Protection Act, Homeowners Protection Act, Servicemembers Civil Relief Act, Real Estate Settlement Procedures Act, TILA-RESPA Integrated Disclosure Rule, Telephone Consumer Protection Act, CAN-SPAM Act, Children’s Online Privacy Protection Act, the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) and the John Warner National Defense Authorization Act. The laws and regulations to which the company is subject are constantly under review by Congress, the federal regulatory agencies, and the state authorities. The bank’s deposit accounts are insured by the Deposit Insurance Fund (the ‘DIF’) of the FDIC. As an FDIC-insured bank, the company’s bank subsidiary is subject to deposit insurance premiums and assessments to maintain the DIF. History German American Bancorp, Inc. was founded in 1910. The company was incorporated in 1982.