3 unchanged sentences
(unaudited, dollars in thousands except share and per share data)
+Added: September 30,
+Added: 2020 December 31,
Cash and Due from Banks $ 56,706 $ 59,971
2 unchanged sentences
Interest-bearing Time Deposits with Banks 1,489 1,985
−Removed: Securities Available-for-Sale, at Fair Value (Amortized Cost $921,890, No Allowance for Credit Losses)
+Added: Securities Available-for-Sale, at Fair Value (Amortized Cost $ 997,074 , No Allowance for
+Added: Credit Losses as of September 30, 2020)
+Added: 1,036,910 854,825
Other Investments 353 353
Loans Held-for-Sale, at Fair Value 27,993 17,713
+Added: Loans 3,225,232 3,081,973
Unearned Income ( 4,105 ) ( 4,882 )
Allowance for Credit Losses ( 46,768 ) ( 16,278 )
+Added: Loans, Net 3,174,359 3,060,813
Stock in FHLB of Indianapolis and Other Restricted Stock, at Cost 13,168 13,968
1 unchanged sentence
Other Real Estate 425 425
+Added: Goodwill 121,956 121,306
Intangible Assets 9,827 12,656
1 unchanged sentence
Accrued Interest Receivable and Other Assets 51,082 44,210
+Added: TOTAL ASSETS $ 4,852,830 $ 4,397,672
Non-interest-bearing Demand Deposits $ 1,185,814 $ 832,985
8 unchanged sentences
45,000,000 shares authorized
+Added: 26,493 26,671
Additional Paid-in Capital 274,166 278,954
9 unchanged sentences
Three Months Ended
+Added: September 30,
INTEREST INCOME
2 unchanged sentences
Interest and Dividends on Securities:
+Added: Taxable 2,350 3,400
+Added: Non-taxable 3,175 2,427
TOTAL INTEREST INCOME 42,113 46,911
29 unchanged sentences
Income Tax Expense 3,154 2,809
+Added: NET INCOME $ 14,593 $ 13,064
Basic Earnings per Share $ 0.55 $ 0.49
4 unchanged sentences
(unaudited, dollars in thousands except per share data)
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
INTEREST INCOME
2 unchanged sentences
Interest and Dividends on Securities:
+Added: Taxable 8,166 10,554
+Added: Non-taxable 8,291 7,107
TOTAL INTEREST INCOME 129,225 129,136
29 unchanged sentences
Income Tax Expense 8,180 8,568
+Added: NET INCOME $ 41,320 $ 43,402
Basic Earnings per Share $ 1.56 $ 1.70
5 unchanged sentences
Three Months Ended
−Removed: Other Comprehensive Income:
+Added: September 30,
+Added: NET INCOME $ 14,593 $ 13,064
+Added: Other Comprehensive Income (Loss):
Unrealized Gains (Losses) on Securities:
1 unchanged sentence
Reclassification Adjustment for Gains Included in Net Income ( 607 ) ( 313 )
−Removed: Total Other Comprehensive Income
+Added: Tax Effect 138 ( 1,261 )
+Added: Net of Tax ( 406 ) 4,649
+Added: Total Other Comprehensive Income (Loss) ( 406 ) 4,649
COMPREHENSIVE INCOME $ 14,187 $ 17,713
−Removed: Six Months Ended
−Removed: Other Comprehensive Income (Loss):
+Added: Nine Months Ended
+Added: September 30,
+Added: NET INCOME $ 41,320 $ 43,402
+Added: Other Comprehensive Income:
Unrealized Gains (Losses) on Securities:
1 unchanged sentence
Reclassification Adjustment for Gains Included in Net Income ( 2,190 ) ( 984 )
−Removed: Total Other Comprehensive Income (Loss)
+Added: Tax Effect ( 4,223 ) ( 6,324 )
+Added: Net of Tax 15,638 22,954
+Added: Total Other Comprehensive Income 15,638 22,954
COMPREHENSIVE INCOME $ 56,958 $ 66,356
3 unchanged sentences
(unaudited, dollars in thousands)
−Removed: Additional Paid-in Capital
−Removed: Retained Earnings
−Removed: Accumulated Other Comprehensive Income (Loss)
−Removed: Total Shareholders' Equity
+Added: Shares Amount Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders' Equity
Balances, December 31, 2019 26,671,368 $ 26,671 $ 278,954 $ 253,090 $ 15,105 $ 573,820
1 unchanged sentence
Balances, January 1, 2020 26,671,368 26,671 278,954 246,373 15,105 567,103
+Added: Net Income 12,472 12,472
Other Comprehensive Income 13,255 13,255
Cash Dividends ($ 0.19 per share)
+Added: ( 5,065 ) ( 5,065 )
Issuance of Common Stock for:
2 unchanged sentences
Balances, March 31, 2020 26,540,031 $ 26,540 $ 274,860 $ 253,780 $ 28,360 $ 583,540
+Added: Net Income 14,255 14,255
Other Comprehensive Income 2,789 2,789
Cash Dividends ($ 0.19 per share)
+Added: ( 5,024 ) ( 5,024 )
Issuance of Common Stock for:
2 unchanged sentences
Balances, June 30, 2020 26,497,291 $ 26,497 $ 274,017 $ 263,011 $ 31,149 $ 594,674
+Added: Net Income 14,593 14,593
+Added: Other Comprehensive Income (Loss) ( 406 ) ( 406 )
+Added: Cash Dividends ($ 0.19 per share)
+Added: ( 5,025 ) ( 5,025 )
+Added: Issuance of Common Stock for:
+Added: Restricted Share Grants ( 378 ) — 254 254
+Added: Stock Repurchase ( 4,047 ) ( 4 ) ( 105 ) ( 109 )
+Added: Balances, September 30, 2020 26,492,866 $ 26,493 $ 274,166 $ 272,579 $ 30,743 $ 603,981
See accompanying notes to consolidated financial statements.
2 unchanged sentences
(unaudited, dollars in thousands)
−Removed: Additional Paid-in Capital
−Removed: Retained Earnings
−Removed: Accumulated Other Comprehensive Income (Loss)
−Removed: Total Shareholders' Equity
+Added: Shares Amount Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders' Equity
Balances, December 31, 2018 24,967,458 $ 24,967 $ 229,347 $ 211,424 $ ( 7,098 ) $ 458,640
+Added: Net Income 15,067 15,067
Other Comprehensive Income 9,414 9,414
Cash Dividends ($ 0.17 per share)
+Added: ( 4,245 ) ( 4,245 )
Issuance of Common Stock for:
1 unchanged sentence
Balances, March 31, 2019 24,992,238 $ 24,992 $ 229,633 $ 222,246 $ 2,316 $ 479,187
+Added: Net Income 15,271 15,271
Other Comprehensive Income 8,891 8,891
Cash Dividends ($ 0.17 per share)
+Added: ( 4,248 ) ( 4,248 )
Issuance of Common Stock for:
1 unchanged sentence
Balances, June 30, 2019 24,992,238 $ 24,992 $ 229,943 $ 233,269 $ 11,207 $ 499,411
+Added: Net Income 13,064 13,064
+Added: Other Comprehensive Income 4,649 4,649
+Added: Cash Dividends ($ 0.17 per share)
+Added: ( 4,532 ) ( 4,532 )
+Added: Issuance of Common Stock for:
+Added: Acquisition of Citizens First Corporation 1,663,954 1,664 48,360 50,024
+Added: Restricted Share Grants 5,886 6 305 311
+Added: Balances, September 30, 2019 26,662,078 $ 26,662 $ 278,608 $ 241,801 $ 15,856 $ 562,927
See accompanying notes to consolidated financial statements.
2 unchanged sentences
(unaudited, dollars in thousands)
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
CASH FLOWS FROM OPERATING ACTIVITIES
+Added: Net Income $ 41,320 $ 43,402
Adjustments to Reconcile Net Income to Net Cash from Operating Activities:
8 unchanged sentences
Loss on Disposition and Donation of Premises and Equipment 127 —
−Removed: Gain on Disposition of Land
+Added: Loss (Gain) on Disposition of Land 30 ( 352 )
Increase in Cash Surrender Value of Company Owned Life Insurance ( 1,092 ) ( 1,034 )
5 unchanged sentences
CASH FLOWS FROM INVESTING ACTIVITIES
+Added: Proceeds from Maturity of Other Short-term Investments 496 496
Proceeds from Maturities of Securities Available-for-Sale 139,679 78,134
8 unchanged sentences
Proceeds from Life Insurance 1,082 1,019
+Added: Acquisition of Citizens First Corporation — 5,545
Net Cash from Investing Activities ( 304,119 ) 62,575
4 unchanged sentences
Repayments of Long-term Debt ( 40,604 ) ( 57,134 )
−Removed: Retirement of Common Stock
+Added: Issuance (Repurchase) of Common Stock ( 5,779 ) 6
Dividends Paid ( 15,114 ) ( 13,025 )
4 unchanged sentences
Cash Paid During the Period for
+Added: Interest $ 16,796 $ 22,450
+Added: Income Taxes 8,000 7,039
Supplemental Non Cash Disclosures
Loans Transferred to Other Real Estate $ — $ 708
+Added: Reclassification of Land and Buildings to Other Assets — 1,471
Right of Use Asset Obtained in Exchange for Lease Liabilities — 9,034
2 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
24 unchanged sentences
Management will continue to evaluate current economic conditions to determine if a triggering event would impact the current valuations for these assets.
−Removed: As a result, it is not currently possible to ascertain the overall impact of COVID-19 on the Company’s business.
−Removed: However, if the pandemic continues to evolve into a prolonged worldwide health crisis, the disease could have a material adverse effect on the Company’s business, results of operations, financial condition and cash flows.
+Added: As a result, it is not currently possible to ascertain the continued impact of COVID-19 on the Company’s business.
+Added: However, if the pandemic continues as a prolonged worldwide health crisis, the disease could have a material adverse effect on the Company’s business, results of operations, financial condition and cash flows.
NOTE 2 - Recent Accounting Pronouncements
4 unchanged sentences
Measurement of Credit Losses on Financial Instruments, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology.
−Removed: The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities.
−Removed: It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments).
−Removed: The new CECL model requires an estimate of expected credit losses, measured over the contractual life of an instrument, which considers reasonable and
+Added: The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 2 - Recent Accounting Pronouncements (continued)
−Removed: supportable forecasts of future economic conditions in addition to information about past events and current conditions.
+Added: receivables and held-to-maturity debt securities.
+Added: It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments).
+Added: The new CECL model requires an estimate of expected credit losses, measured over the contractual life of an instrument, which considers reasonable and supportable forecasts of future economic conditions in addition to information about past events and current conditions.
The standard provides significant flexibility and requires a high degree of judgement with regards to pooling financial assets with similar risk characteristics and adjusting the relevant historical loss information in order to develop an estimate of expected lifetime losses.
8 unchanged sentences
The following table illustrates the impact of the segment expansion as of January 1, 2020.
−Removed: (dollars in thousands)
−Removed: December 31, 2019 Statement Balance
−Removed: Segment Portfolio Reclassifications
−Removed: December 31, 2019 After Reclassification
+Added: (dollars in thousands) December 31, 2019 Statement Balance Segment Portfolio Reclassifications December 31, 2019 After Reclassification
Commercial and Industrial Loans $ 589,758 $ ( 57,257 ) $ 532,501
−Removed: Commercial Real Estate Loans
−Removed: Agricultural Loans
−Removed: Home Equity Loans
+Added: Commercial Real Estate Loans 1,495,862 N/A 1,495,862
+Added: Agricultural Loans 384,526 N/A 384,526
+Added: Leases N/A 57,257 57,257
+Added: Home Equity Loans 225,755 N/A 225,755
Consumer Loans 81,217 ( 11,953 ) 69,264
−Removed: Residential Mortgage Loans
+Added: Credit Cards N/A 11,953 11,953
+Added: Residential Mortgage Loans 304,855 N/A 304,855
+Added: Total Loans $ 3,081,973 $ — $ 3,081,973
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
1 unchanged sentence
The following table illustrates the impact of ASC 326:
−Removed: (dollars in thousands)
−Removed: December 31, 2019 After Reclassification
−Removed: Impact of ASC 326 Adoption
−Removed: January 1, 2020 Post-ASC 326 Adoption
+Added: (dollars in thousands) December 31, 2019 After Reclassification Impact of ASC 326 Adoption January 1, 2020 Post-ASC 326 Adoption
Commercial and Industrial Loans $ 532,501 $ 2,191 $ 534,692
1 unchanged sentence
Agricultural Loans 384,526 128 384,654
+Added: Leases 57,257 — 57,257
Home Equity Loans 225,755 35 225,790
Consumer Loans 69,264 — 69,264
+Added: Credit Cards 11,953 — 11,953
Residential Mortgage Loans 304,855 147 305,002
8 unchanged sentences
Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, deferred loan fees and costs.
−Removed: Accrued interest receivable totaled $ 14,726 at June 30, 2020 and was reported in Accrued Interest Receivable and Other Assets on the Consolidated Balance Sheets.
+Added: Accrued interest receivable totaled $ 14,995 at September 30, 2020 and was reported in Accrued Interest Receivable and Other Assets on the Consolidated Balance Sheets.
Interest income is accrued on the unpaid principal balance.
14 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
29 unchanged sentences
A loan for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, is considered to be a TDR.
−Removed: The allowances for credit losses on loans on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows, not the rate specified within the restructuring.
+Added: The allowances for credit losses on loans on a TDR is measured using the same method as all other loans held for investment, except that the original interest rate is used to discount the expected cash flows, not the
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 2 - Recent Accounting Pronouncements (continued)
+Added: rate specified within the restructuring.
+Added: See “Loan Modifications and Troubled Debt Restructures due to COVID-19” at the beginning of this Note 2 for additional information.
Allowance for Credit Losses on Available-For-Sale Securities
34 unchanged sentences
The amendments in this update became effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019 and did not have a material impact on the Company's financial statements.
+Added: GERMAN AMERICAN BANCORP, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: September 30, 2020
+Added: (unaudited, dollars in thousands except share and per share data)
+Added: NOTE 2 - Recent Accounting Pronouncements (continued)
Accounting Guidance Issued But Not Yet Adopted
3 unchanged sentences
These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform.
−Removed: The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR
−Removed: GERMAN AMERICAN BANCORP, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
−Removed: (unaudited, dollars in thousands except share and per share data)
−Removed: NOTE 2 - Recent Accounting Pronouncements (continued)
−Removed: or another reference rate expected to be discontinued.
+Added: The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued.
It is intended to help stakeholders during the global market-wide reference rate transition period.
4 unchanged sentences
Three Months Ended
+Added: September 30,
Basic Earnings per Share:
+Added: Net Income $ 14,593 $ 13,064
Weighted Average Shares Outstanding 26,497,398 26,643,064
1 unchanged sentence
Diluted Earnings per Share:
+Added: Net Income $ 14,593 $ 13,064
Weighted Average Shares Outstanding 26,497,398 26,643,064
2 unchanged sentences
Diluted Earnings per Share $ 0.55 $ 0.49
−Removed: For the three months ended June 30, 2020 and 2019, there were no anti-dilutive shares.
−Removed: Six Months Ended
+Added: For the three months ended September 30, 2020 and 2019, there were no anti-dilutive shares.
+Added: Nine Months Ended
+Added: September 30,
Basic Earnings per Share:
+Added: Net Income $ 41,320 $ 43,402
Weighted Average Shares Outstanding 26,554,369 25,541,843
1 unchanged sentence
Diluted Earnings per Share:
+Added: Net Income $ 41,320 $ 43,402
Weighted Average Shares Outstanding 26,554,369 25,541,843
2 unchanged sentences
Diluted Earnings per Share $ 1.56 $ 1.70
−Removed: For the six months ended June 30, 2020 and 2019, there were no anti-dilutive shares.
+Added: For the nine months ended September 30, 2020 and 2019, there were no anti-dilutive shares.
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
2 unchanged sentences
Securities Available-for-Sale:
−Removed: Allowance for Credit Losses
−Removed: June 30, 2020
+Added: Losses Allowance for Credit Losses Fair
+Added: September 30, 2020
Obligations of State and Political Subdivisions $ 489,070 $ 25,928 $ ( 986 ) $ — $ 514,012
+Added: MBS/CMO 508,004 14,957 ( 63 ) — 522,898
+Added: Total $ 997,074 $ 40,885 $ ( 1,049 ) $ — $ 1,036,910
December 31, 2019
Obligations of State and Political Subdivisions $ 307,943 $ 16,366 $ ( 9 ) $ — $ 324,300
+Added: MBS/CMO 526,907 5,414 ( 1,796 ) — 530,525
+Added: Total $ 834,850 $ 21,780 $ ( 1,805 ) $ — $ 854,825
All mortgage-backed securities in the above table (identified above and throughout this Note 4 as "MBS/CMO") are residential and multi-family mortgage-backed securities and guaranteed by government sponsored entities.
−Removed: The amortized cost and fair value of Securities at June 30, 2020 by contractual maturity are shown below.
+Added: The amortized cost and fair value of Securities at September 30, 2020 by contractual maturity are shown below.
Expected maturities may differ from contractual maturities because some issuers have the right to call or prepay certain obligations with or without call or prepayment penalties.
5 unchanged sentences
Due after ten years 393,404 413,025
+Added: MBS/CMO 508,004 522,898
+Added: Total $ 997,074 $ 1,036,910
Proceeds from the Sales of Securities are summarized below:
−Removed: Three Months Ended
−Removed: Three Months Ended
−Removed: June 30, 2020
−Removed: June 30, 2019
−Removed: Proceeds from Sales
−Removed: Gross Gains on Sales
−Removed: Income Taxes on Gross Gains
−Removed: Six Months Ended
−Removed: Six Months Ended
−Removed: June 30, 2020
−Removed: June 30, 2019
+Added: Three Months Ended Three Months Ended
+Added: September 30, 2020 September 30, 2019
Proceeds from Sales $ 11,270 $ 53,025
1 unchanged sentence
Income Taxes on Gross Gains 127 66
−Removed: The carrying value of securities pledged to secure repurchase agreements, public and trust deposits, and for other purposes as required by law was $ 241,349 and $ 245,664 as of June 30, 2020 and December 31, 2019, respectively.
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 4 - Securities (continued)
−Removed: Below is a summary of securities with unrealized losses as of June 30, 2020 and December 31, 2019, presented by length of time the securities have been in a continuous unrealized loss position:
−Removed: Less than 12 Months
−Removed: 12 Months or More
−Removed: June 30, 2020
+Added: Nine Months Ended Nine Months Ended
+Added: September 30, 2020 September 30, 2019
+Added: Proceeds from Sales $ 74,693 $ 75,299
+Added: Gross Gains on Sales 2,190 984
+Added: Income Taxes on Gross Gains 464 207
+Added: The carrying value of securities pledged to secure repurchase agreements, public and trust deposits, and for other purposes as required by law was $ 224,379 and $ 245,664 as of September 30, 2020 and December 31, 2019, respectively.
+Added: Below is a summary of securities with unrealized losses as of September 30, 2020 and December 31, 2019, presented by length of time the securities have been in a continuous unrealized loss position:
+Added: Less than 12 Months 12 Months or More Total
+Added: September 30, 2020 Fair
+Added: Value Unrealized
+Added: Value Unrealized
+Added: Value Unrealized
Obligations of State and Political Subdivisions $ 66,378 $ ( 986 ) $ — $ — $ 66,378 $ ( 986 )
−Removed: Less than 12 Months
−Removed: 12 Months or More
−Removed: December 31, 2019
+Added: MBS/CMO 32,902 ( 63 ) 4 — 32,906 ( 63 )
+Added: Total $ 99,280 $ ( 1,049 ) $ 4 $ — $ 99,284 $ ( 1,049 )
+Added: Less than 12 Months 12 Months or More Total
+Added: December 31, 2019 Fair
+Added: Value Unrealized
+Added: Value Unrealized
+Added: Value Unrealized
Obligations of State and Political Subdivisions $ 4,631 $ ( 9 ) $ — $ — $ 4,631 $ ( 9 )
+Added: MBS/CMO 89,267 ( 241 ) 155,989 ( 1,555 ) 245,256 ( 1,796 )
+Added: Total $ 93,898 $ ( 250 ) $ 155,989 $ ( 1,555 ) $ 249,887 $ ( 1,805 )
Available-for-sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly.
6 unchanged sentences
Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income, net of applicable taxes.
−Removed: No allowance for credit losses for available-for-sale debt securities was needed at June 30, 2020.
−Removed: Accrued interest receivable on available-for-sale debt securities totaled $ 4,720 at June 30, 2020 and is excluded from the estimate of credit losses.
−Removed: The Company's equity securities are listed as Other Investments on the Consolidated Balance Sheets and consist of one non-controlling investment in a single banking organization at June 30, 2020 and December 31, 2019.
+Added: No allowance for credit losses for available-for-sale debt securities was needed at September 30, 2020.
+Added: Accrued interest receivable on available-for-sale debt securities totaled $ 5,255 at September 30, 2020 and is excluded from the estimate of credit losses.
+Added: The Company's equity securities are listed as Other Investments on the Consolidated Balance Sheets and consist of one non-controlling investment in a single banking organization at September 30, 2020 and December 31, 2019.
The original investment totaled $ 1,350 and other-than-temporary impairment was previously recorded totaling $ 997 .
The Company's equity securities are considered not to have readily determinable fair value and are carried at cost and evaluated for impairment.
−Removed: At June 30, 2020, there was no additional impairment recognized through earnings.
+Added: At September 30, 2020, there was no additional impairment recognized through earnings.
+Added: GERMAN AMERICAN BANCORP, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: September 30, 2020
+Added: (unaudited, dollars in thousands except share and per share data)
NOTE 5 – Derivatives
The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies.
−Removed: The notional amounts of these interest rate swaps and the offsetting counterparty derivative instruments were $ 110.3 million at June 30, 2020 and $ 102.4 million at December 31, 2019.
+Added: The notional amounts of these interest rate swaps and the offsetting counterparty derivative instruments were $ 109.5 million at September 30, 2020 and $ 102.4 million at December 31, 2019.
These interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions with approved, reputable, independent counterparties with substantially matching terms.
5 unchanged sentences
In addition, the Company minimizes credit risk through credit approvals, limits, and monitoring procedures.
−Removed: GERMAN AMERICAN BANCORP, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
−Removed: (unaudited, dollars in thousands except share and per share data)
−Removed: NOTE 5 - Derivatives (continued)
The following table reflects the fair value hedges included in the Consolidated Balance Sheets as of:
−Removed: June 30, 2020
−Removed: December 31, 2019
+Added: September 30, 2020 December 31, 2019
+Added: Amount Fair Value Notional
+Added: Amount Fair Value
Included in Other Assets:
4 unchanged sentences
Three Months Ended
−Removed: Six Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
+Added: 2020 2019 2020 2019
Interest Rate Swaps:
Included in Other Operating Income $ 64 $ 314 $ ( 169 ) $ 108
+Added: GERMAN AMERICAN BANCORP, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: September 30, 2020
+Added: (unaudited, dollars in thousands except share and per share data)
NOTE 6 – Loans
−Removed: Loans at June 30, 2020 were as follows:
+Added: Loans were comprised of the following classifications at September 30:
+Added: September 30,
+Added: 2020 December 31,
Commercial and Industrial Loans $ 781,547 $ 532,501
1 unchanged sentence
Agricultural Loans 376,215 384,526
+Added: Leases 57,475 57,257
Home Equity Loans 218,640 225,755
Consumer Loans 64,919 69,264
+Added: Credit Cards 10,717 11,953
Residential Mortgage Loans 262,439 304,855
+Added: Subtotal 3,225,232 3,081,973
Unearned Income ( 4,105 ) ( 4,882 )
Allowance for credit losses ( 46,768 ) ( 16,278 )
+Added: Loans, net $ 3,174,359 $ 3,060,813
On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law, providing an approximately $2 trillion stimulus package that includes direct payments to individual taxpayers, economic stimulus to significantly impacted industry sectors, emergency funding for hospitals and providers, small business loans, increased unemployment benefits, and a variety of tax incentives.
3 unchanged sentences
The PPP was further modified on June 5, 2020 with the adoption of the Paycheck Protection Program Flexibility Act (the “Flexibility Act”), which extended the maturity date for PPP loans from two years to five years for loans disbursed on or after the date of enactment of the Flexibility Act.
−Removed: For PPP loans disbursed prior to such enactment, the Flexibility Act permits the borrower
+Added: For PPP loans disbursed prior to such enactment, the Flexibility Act permits the borrower and lender to mutually agree to extend the term of the loan to five years.
+Added: The vast majority of the Company's PPP loans have two-year maturities.
+Added: PPP loans earn interest at a fixed rate of 1% and are fully guaranteed by the U.S.
+Added: As of September 30, 2020, the Bank had approximately $ 351.3 million outstanding, on 3,070 PPP loan relationships under this program, all of which are included above in the Commercial and Industrial Loan category.
+Added: The Company anticipates that the majority of the PPP loans will ultimately be forgiven by the SBA in accordance with the terms of the program.
+Added: As of October 31, 2020, 603 of our loans totaling $ 113 million have been submitted to the SBA for forgiveness.
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 6 - Loans (continued)
−Removed: and lender to mutually agree to extend the term of the loan to five years.
−Removed: The vast majority of the Company's PPP loans have two-year maturities.
−Removed: PPP loans earn interest at a fixed rate of 1% and are fully guaranteed by the U.S.
−Removed: The Company anticipates that the majority of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program.
−Removed: As of June 30, 2020, the Bank has $ 349,546 in loans under this program, all of which are included above in the Commercial and Industrial Loan category.
Allowance for Credit Losses for Loans
−Removed: The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended June 30, 2020:
−Removed: June 30, 2020
−Removed: Commercial and Industrial
−Removed: Commercial Real Estate Loans
−Removed: Consumer Loans
−Removed: Home Equity Loans
−Removed: Residential Mortgage Loans
+Added: The following table presents the activity in the allowance for credit losses by portfolio segment for the three months ended September 30, 2020:
+Added: September 30, 2020 Commercial and Industrial
+Added: Loans Commercial Real Estate Loans Agricultural
+Added: Loans Leases Consumer Loans Home Equity Loans Credit Cards Residential Mortgage Loans Unallocated Total
Allowance for Credit Losses:
4 unchanged sentences
Total ending allowance balance $ 7,700 $ 28,382 $ 6,715 $ 206 $ 492 $ 995 $ 137 $ 2,141 $ — $ 46,768
−Removed: The following table presents the activity in the allowance for credit losses by portfolio segment for the six months ended June 30, 2020:
−Removed: June 30, 2020
−Removed: Commercial and Industrial
−Removed: Commercial Real Estate Loans
−Removed: Consumer Loans
−Removed: Home Equity Loans
−Removed: Residential Mortgage Loans
+Added: The following table presents the activity in the allowance for credit losses by portfolio segment for the nine months ended September 30, 2020:
+Added: September 30, 2020 Commercial and Industrial
+Added: Loans Commercial Real Estate Loans Agricultural
+Added: Loans Leases Consumer Loans Home Equity Loans Credit Cards Residential Mortgage Loans Unallocated Total
Allowance for Credit Losses:
13 unchanged sentences
Loans evaluated individually are not included in the collective evaluation.
−Removed: When the borrower is experiencing financial difficulty at the reporting date and repayment is expected
+Added: When the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date adjusted for selling costs.
+Added: The Company utilizes the Static Pool methodology in determining expected future credit losses.
+Added: Static pool analysis means segmenting and tracking loans over a period of time based on similar risk characteristics such as loan structure, collateral type, industry of borrower and concentrations, contractual terms and credit risk indicators.
+Added: Static pool calculates a loss rate on a closed pool of loans that existed on a specified start date based upon the remaining life of each segment.
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 6 - Loans (continued)
−Removed: to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date adjusted for selling costs.
−Removed: The Company utilizes the Static Pool methodology in determining expected future credit losses.
−Removed: Static pool analysis means segmenting and tracking loans over a period of time based on similar risk characteristics such as loan structure, collateral type, industry of borrower and concentrations, contractual terms and credit risk indicators.
−Removed: Static pool calculates a loss rate on a closed pool of loans that existed on a specified start date based upon the remaining life of each segment.
The Company's expected loss estimate is anchored in historical credit loss experience, with an emphasis on all available portfolio data.
3 unchanged sentences
Management attempts to quantify qualitative reserves whenever possible.
−Removed: For the six months ended June 30, 2020, the allowance for credit losses increased primarily due to macroeconomic factors surrounding the COVID-19 pandemic.
−Removed: While there continues to be great uncertainty related to COVID-19 on our borrowers and communities, we have begun to recognize significant declines in employment and gross domestic product which are key indicators utilized in our forecasting for our allowance calculations.
+Added: For the nine months ended September 30, 2020, the allowance for credit losses increased primarily due to macroeconomic factors surrounding the COVID-19 pandemic.
+Added: While there continues to be great uncertainty related to COVID-19 on our borrowers and communities, we have recognized significant declines in employment and gross domestic product which are key indicators utilized in our forecasting for our allowance calculations.
Based on the potential increased losses related to the economic impact of the COVID-19 pandemic, the bank has considered this loss experience may align with loss experience from the recessionary period from 2008-2011 and qualitative adjustments have been made accordingly.
7 unchanged sentences
Exceptions to the non-accrual and charge-off policies are made when the loan is well secured and in the process of collection.
−Removed: The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of June 30, 2020:
−Removed: June 30, 2020
−Removed: Non-Accrual With No Allowance for Credit Loss
−Removed: Loans Past Due Over 89 Days Still Accruing
+Added: The following table presents the amortized cost basis of loans on non-accrual status and loans past due over 89 days still accruing as of September 30, 2020:
+Added: September 30, 2020 Non-Accrual With No Allowance for Credit Loss Non-Accrual Loans Past Due Over 89 Days Still Accruing
Commercial and Industrial Loans $ 1,350 $ 8,519 $ —
3 unchanged sentences
Consumer Loans 61 105 —
+Added: Credit Cards 66 66 —
Residential Mortgage Loans 770 1,063 —
−Removed: Interest income on non-accrual loans recognized during the three and six months ended June 30, 2020 totaled $ 13 and $ 16 , respectively.
+Added: Total $ 10,119 $ 22,878 $ —
+Added: Interest income on non-accrual loans recognized during the three and nine months ended September 30, 2020 totaled $ 1 and $ 17 , respectively.
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 6 - Loans (continued)
−Removed: The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of June 30, 2020:
−Removed: June 30, 2020
−Removed: Accounts Receivable
+Added: The following table presents the amortized cost basis of collateral-dependent loans by class of loans as of September 30, 2020:
+Added: September 30, 2020 Real Estate Equipment Accounts Receivable Other Total
Commercial and Industrial Loans $ 4,973 $ 3,380 $ 699 $ 41 $ 9,093
1 unchanged sentence
Agricultural Loans 3,069 — — 1 3,070
+Added: Leases — — — — —
Home Equity Loans 415 — — — 415
Consumer Loans 39 3 — 5 47
+Added: Credit Cards — — — — —
Residential Mortgage Loans 1,043 — — — 1,043
−Removed: The following table presents the aging of the amortized cost basis in past due loans by class of loans as of June 30, 2020:
−Removed: June 30, 2020
−Removed: 30-59 Days Past Due
−Removed: 60-89 Days Past Due
−Removed: Greater Than 89 Days Past Due
−Removed: Loans Not Past Due
+Added: Total $ 22,575 $ 3,383 $ 699 $ 1,651 $ 28,308
+Added: The following table presents the aging of the amortized cost basis in past due loans by class of loans as of September 30, 2020:
+Added: September 30, 2020 30-59 Days Past Due 60-89 Days Past Due Greater Than 89 Days Past Due Total
+Added: Past Due Loans Not Past Due Total
Commercial and Industrial Loans $ 35 $ 160 $ 4,488 $ 4,683 $ 776,864 $ 781,547
1 unchanged sentence
Agricultural Loans — 578 73 651 375,564 376,215
+Added: Leases — — — — 57,475 57,475
Home Equity Loans 401 113 200 714 217,926 218,640
Consumer Loans 259 61 84 404 64,515 64,919
+Added: Credit Cards 147 29 66 242 10,475 10,717
Residential Mortgage Loans 3,281 1,947 812 6,040 256,399 262,439
+Added: Total $ 5,760 $ 2,888 $ 6,681 $ 15,329 $ 3,209,903 $ 3,225,232
Troubled Debt Restructurings:
4 unchanged sentences
The Company uses the same methodology for loans acquired with deteriorated credit quality as for all other loans when determining whether the loan is a troubled debt restructuring.
−Removed: As of June 30, 2020, the Company had troubled debt restructurings totaling $ 114 .
−Removed: The Company has no specific allocation of allowance for these loans at June 30, 2020.
−Removed: The Company had no t committed to lending any additional amounts as of June 30, 2020 and December 31, 2019 to customers with outstanding loans that are classified as troubled debt restructurings.
−Removed: During the three and six months ended June 30, 2020 and 2019, the Company had no loans modified as troubled debt restructurings.
−Removed: Additionally, there were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three and six months ended June 30, 2020 and 2019.
+Added: As of September 30, 2020, the Company had troubled debt restructurings totaling $ 113 .
+Added: The Company had no specific allocation of allowance for these loans at September 30, 2020.
+Added: The Company had no t committed to lending any additional amounts as of September 30, 2020 and December 31, 2019 to customers with outstanding loans that are classified as troubled debt restructurings.
+Added: During the three and nine months ended September 30, 2020 and 2019, the Company had no loans modified as troubled debt restructurings.
+Added: Additionally, there were no loans modified as troubled debt restructurings for which there was a payment default within twelve months following the modification during the three and nine months ended September 30, 2020 and 2019.
A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
3 unchanged sentences
Accordingly, the Company is offering short-term modifications made in response to COVID-19 to borrowers who are current and otherwise not past due.
−Removed: As of June 30, 2020, the following payment modifications have been made:
+Added: As of September 30, 2020, the following active payment modifications are still in effect.
+Added: These payment modifications are significantly reduced from the level of active modifications as of June 30, 2020.
+Added: % of Loan Category
+Added: (Excludes PPP Loans)
Type of Loans
−Removed: Number of Loans
−Removed: % of Loan Type (excludes PPP Loans)
−Removed: (dollars in thousands)
+Added: (dollars in thousands) Number of Loans Outstanding Balance
+Added: As of 9/30/2020
+Added: As of 6/30/2020
Commercial & Industrial Loans 24 $ 6,154 1.2 % 10.8 %
1 unchanged sentence
Agricultural Loans — — — % 0.3 %
−Removed: Consumer Loans
+Added: Consumer Loans 1 3 n/m (1)
Residential Mortgage Loans 12 1,275 0.5 % 8.2 %
+Added: Total 81 $ 90,418 3.1 % 10.4 %
Credit Quality Indicators:
15 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
2 unchanged sentences
Term Loans Amortized Cost Basis by Origination Year
−Removed: As of June 30, 2020
−Removed: Revolving Loans Amortized Cost Basis
+Added: As of September 30, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total
Commercial and Industrial:
+Added: Pass $ 387,099 $ 95,812 $ 54,005 $ 37,396 $ 24,134 $ 55,538 $ 100,294 $ 754,278
Special Mention 187 546 1,350 2,073 185 2,137 2,436 8,914
+Added: Substandard 1,167 — 1,193 1,405 976 5,836 7,778 18,355
+Added: Doubtful — — — — — — — —
Total Commercial & Industrial Loans $ 388,453 $ 96,358 $ 56,548 $ 40,874 $ 25,295 $ 63,511 $ 110,508 $ 781,547
Commercial Real Estate:
+Added: Pass $ 195,078 $ 241,890 $ 204,211 $ 214,673 $ 186,951 $ 328,350 $ 35,405 $ 1,406,558
Special Mention 527 3,038 1,798 4,511 2,025 15,173 247 27,319
+Added: Substandard — 1,119 1,995 1,777 4,343 10,169 — 19,403
+Added: Doubtful — — — — — — — —
Total Commercial Real Estate Loans $ 195,605 $ 246,047 $ 208,004 $ 220,961 $ 193,319 $ 353,692 $ 35,652 $ 1,453,280
Agricultural:
+Added: Pass $ 36,822 $ 28,368 $ 33,653 $ 34,303 $ 24,056 $ 70,059 $ 77,605 $ 304,866
Special Mention 5,444 7,803 2,974 8,713 2,138 15,763 15,439 58,274
+Added: Substandard 611 73 394 1,255 4,467 6,025 250 13,075
+Added: Doubtful — — — — — — — —
Total Agricultural Loans $ 42,877 $ 36,244 $ 37,021 $ 44,271 $ 30,661 $ 91,847 $ 93,294 $ 376,215
+Added: Pass $ 14,950 $ 19,334 $ 10,342 $ 6,297 $ 2,194 $ 4,358 $ — $ 57,475
Special Mention — — — — — — — —
+Added: Substandard — — — — — — — —
+Added: Doubtful — — — — — — — —
+Added: Total Leases $ 14,950 $ 19,334 $ 10,342 $ 6,297 $ 2,194 $ 4,358 $ — $ 57,475
+Added: The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses.
+Added: For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity.
+Added: The following table presents the amortized cost in residential, home equity and consumer loans based on payment activity.
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 6 - Loans (continued)
−Removed: The Company considers the performance of the loan portfolio and its impact on the allowance for credit losses.
−Removed: For residential and consumer loan classes, the Company also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity.
−Removed: The following table presents the amortized cost in residential, home equity and consumer loans based on payment activity.
Term Loans Amortized Cost Basis by Origination Year
−Removed: As of June 30, 2020
−Removed: Revolving Loans Amortized Cost Basis
+Added: As of September 30, 2020 2020 2019 2018 2017 2016 Prior Revolving Loans Amortized Cost Basis Total
Payment performance
+Added: Performing $ 25,189 $ 21,676 $ 9,777 $ 2,876 $ 1,292 $ 2,444 $ 1,560 $ 64,814
Nonperforming 5 3 2 2 — 62 31 105
1 unchanged sentence
Payment performance
+Added: Performing $ — $ — $ 34 $ 46 $ 68 $ 425 $ 217,866 $ 218,439
Nonperforming — — — — — — 201 201
2 unchanged sentences
Payment performance
+Added: Performing $ 27,378 $ 28,514 $ 33,281 $ 32,530 $ 29,701 $ 109,972 $ — $ 261,376
Nonperforming — — — — 87 976 — 1,063
3 unchanged sentences
The following table presents the recorded investment in retail loans based on payment activity:
−Removed: As of June 30, 2020
+Added: As of September 30, 2020 Credit Cards
+Added: Performing $ 10,651
Nonperforming 66
+Added: Total $ 10,717
The following table presents loans purchased and/or sold during the year by portfolio segment:
−Removed: June 30, 2020
−Removed: Commercial and Industrial Loans
−Removed: Commercial Real Estate Loans
−Removed: Agricultural Loans
−Removed: Consumer Loans
−Removed: Home Equity Loans
−Removed: Residential Mortgage Loans
+Added: September 30, 2020 Commercial and Industrial Loans Commercial Real Estate Loans Agricultural Loans Leases Consumer Loans Home Equity Loans Credit Cards Residential Mortgage Loans Total
+Added: Purchases $ — $ — $ — $ — $ — $ — $ — $ — $ —
+Added: Sales — 527 — — — — — — 527
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
3 unchanged sentences
The following tables are disclosures related to the allowance for loan losses in prior periods.
−Removed: The following table presents the activity in the allowance for loan losses by portfolio class for the three months ended June 30, 2019:
−Removed: June 30, 2019
−Removed: Commercial and Industrial
−Removed: Loans and Leases
−Removed: Commercial Real Estate Loans
−Removed: Home Equity Loans
−Removed: Consumer Loans
−Removed: Residential Mortgage Loans
+Added: The following table presents the activity in the allowance for loan losses by portfolio class for the three months ended September 30, 2019:
+Added: September 30, 2019 Commercial and Industrial
+Added: Loans and Leases Commercial Real Estate Loans Agricultural
+Added: Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Total
Beginning Balance $ 2,992 $ 5,841 $ 5,725 $ 258 $ 422 $ 349 $ 652 $ 16,239
Provision for Loan Losses 4,468 ( 1,410 ) ( 373 ) ( 72 ) 174 25 ( 12 ) 2,800
+Added: Recoveries 2 5 — 8 99 — — 114
Loans Charged-off ( 2,859 ) ( 136 ) — — ( 277 ) ( 12 ) — ( 3,284 )
Ending Balance $ 4,603 $ 4,300 $ 5,352 $ 194 $ 418 $ 362 $ 640 $ 15,869
−Removed: The following table presents the activity in the allowance for loan losses by portfolio class for the six months ended June 30, 2019:
−Removed: June 30, 2019
−Removed: Commercial and Industrial
−Removed: Loans and Leases
−Removed: Commercial Real Estate Loans
−Removed: Home Equity Loans
−Removed: Consumer Loans
−Removed: Residential Mortgage Loans
+Added: The following table presents the activity in the allowance for loan losses by portfolio class for the nine months ended September 30, 2019:
+Added: September 30, 2019 Commercial and Industrial
+Added: Loans and Leases Commercial Real Estate Loans Agricultural
+Added: Loans Home Equity Loans Consumer Loans Residential Mortgage Loans Unallocated Total
Beginning Balance $ 2,953 $ 5,291 $ 5,776 $ 229 $ 420 $ 472 $ 682 $ 15,823
Provision for Loan Losses 4,512 ( 741 ) ( 424 ) ( 33 ) 507 ( 54 ) ( 42 ) 3,725
+Added: Recoveries 53 24 — 8 313 6 — 404
Loans Charged-off ( 2,915 ) ( 274 ) — ( 10 ) ( 822 ) ( 62 ) — ( 4,083 )
2 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
1 unchanged sentence
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of December 31, 2019:
−Removed: December 31, 2019
−Removed: Loans and Leases
−Removed: Real Estate Loans
−Removed: Agricultural Loans
−Removed: Consumer Loans
−Removed: Mortgage Loans
+Added: December 31, 2019 Total Commercial
+Added: Loans and Leases Commercial
+Added: Real Estate Loans Agricultural Loans Home
+Added: Equity Loans Consumer Loans Residential
+Added: Mortgage Loans Unallocated
Allowance for Loan Losses:
4 unchanged sentences
Total Ending Allowance Balance $ 16,278 $ 4,799 $ 4,692 $ 5,315 $ 200 $ 434 $ 333 $ 505
−Removed: Loans Individually Evaluated for Impairment
−Removed: Loans Collectively Evaluated for Impairment
−Removed: Loans Acquired with Deteriorated Credit Quality
+Added: Loans Individually Evaluated for Impairment $ 6,269 $ 4,707 $ 1,562 $ — $ — $ — $ — n/m(2)
+Added: Loans Collectively Evaluated for Impairment 3,076,835 585,328 1,491,090 387,710 226,406 81,429 304,872 n/m(2)
+Added: Loans Acquired with Deteriorated Credit Quality 12,798 1,368 7,212 3,161 369 — 688 n/m(2)
Total Ending Loans Balance (1)
+Added: $ 3,095,902 $ 591,403 $ 1,499,864 $ 390,871 $ 226,775 $ 81,429 $ 305,560 n/m(2)
(1) Total recorded investment in loans includes $ 13,929 in accrued interest.
1 unchanged sentence
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019:
−Removed: December 31, 2019
−Removed: Allowance for
+Added: December 31, 2019 Unpaid
+Added: Investment Allowance for
With No Related Allowance Recorded:
2 unchanged sentences
Agricultural Loans 3,294 2,738 —
+Added: Subtotal 11,670 5,320 —
With An Allowance Recorded:
2 unchanged sentences
Agricultural Loans — — —
−Removed: Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
−Removed: Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
+Added: Subtotal 7,229 6,386 3,371
+Added: Total $ 18,899 $ 11,706 $ 3,371
+Added: Loans Acquired With Deteriorated Credit Quality With No Related Allowance
+Added: Recorded (Included in the Total Above) $ 9,994 $ 4,624 $ —
+Added: Loans Acquired With Deteriorated Credit Quality With An Additional
+Added: Allowance Recorded (Included in the Total Above) $ 1,134 $ 813 $ 400
(1) Unpaid Principal Balance is the remaining contractual payments gross of partial charge-offs and discounts.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 6 - Loans (continued)
−Removed: The following table presents the average balance and related interest income of loans individually evaluated for impairment by class of loans for the three month period ended June 30, 2019:
−Removed: June 30, 2019
−Removed: Average Recorded
−Removed: Interest Income Recognized
+Added: The following table presents the average balance and related interest income of loans individually evaluated for impairment by class of loans for the three month period ended September 30, 2019:
+Added: September 30, 2019 Average Recorded
+Added: Investment Interest Income Recognized Cash Basis
With No Related Allowance Recorded:
2 unchanged sentences
Agricultural Loans 1,539 1 —
+Added: Subtotal 7,106 54 5
With An Allowance Recorded:
2 unchanged sentences
Agricultural Loans — — —
−Removed: Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
−Removed: Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
−Removed: The following table presents the average balance and related interest income of loans individually evaluated for impairment by class of loans for the six month period ended June 30, 2019:
−Removed: June 30, 2019
−Removed: Average Recorded
−Removed: Interest Income Recognized
+Added: Subtotal 7,718 — 3
+Added: Total $ 14,824 $ 54 $ 8
+Added: Loans Acquired With Deteriorated Credit Quality With No Related Allowance
+Added: Recorded (Included in the Total Above) $ 3,381 $ 43 $ —
+Added: Loans Acquired With Deteriorated Credit Quality With An Additional
+Added: Allowance Recorded (Included in the Total Above) $ 815 $ — $ —
+Added: The following table presents the average balance and related interest income of loans individually evaluated for impairment by class of loans for the nine month period ended September 30, 2019:
+Added: September 30, 2019 Average Recorded
+Added: Investment Interest Income Recognized Cash Basis
With No Related Allowance Recorded:
2 unchanged sentences
Agricultural Loans 1,452 1 —
+Added: Subtotal 5,702 84 7
With An Allowance Recorded:
2 unchanged sentences
Agricultural Loans — — —
−Removed: Loans Acquired With Deteriorated Credit Quality With No Related Allowance Recorded (Included in the Total Above)
−Removed: Loans Acquired With Deteriorated Credit Quality With An Additional Allowance Recorded (Included in the Total Above)
+Added: Subtotal 6,927 — —
+Added: Total $ 12,629 $ 84 $ 7
+Added: Loans Acquired With Deteriorated Credit Quality With No Related Allowance
+Added: Recorded (Included in the Total Above) $ 4,070 $ 58 $ —
+Added: Loans Acquired With Deteriorated Credit Quality With An Additional
+Added: Allowance Recorded (Included in the Total Above) $ 2,083 $ — $ —
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
3 unchanged sentences
90 Days or More
−Removed: & Still Accruing
+Added: Non-Accrual & Still Accruing
Commercial and Industrial Loans and Leases $ 4,940 $ 190
4 unchanged sentences
Residential Mortgage Loans 2,496 —
+Added: Total $ 13,802 $ 190
Loans Acquired With Deteriorated Credit Quality
3 unchanged sentences
The following table presents the aging of the recorded investment in past due loans by class of loans as of December 31, 2019:
−Removed: December 31, 2019
+Added: December 31, 2019 Total 30-59 Days
+Added: Past Due 60-89 Days
+Added: Past Due 90 Days
+Added: Past Due Total
+Added: Past Due Loans Not
Commercial and Industrial Loans and Leases $ 591,403 $ 4,689 $ 83 $ 799 $ 5,571 $ 585,832
4 unchanged sentences
Residential Mortgage Loans 305,560 5,014 1,461 2,308 8,783 296,777
+Added: $ 3,095,902 $ 11,879 $ 2,384 $ 5,711 $ 19,974 $ 3,075,928
Loans Acquired With Deteriorated Credit Quality
(Included in the Total Above)
+Added: $ 12,798 $ 18 $ — $ 1,589 $ 1,607 $ 11,191
Loans Acquired in Current Year
(Included in the Total Above)
+Added: $ 321,464 $ 639 $ 1 $ 797 $ 1,437 $ 320,027
(1) Total recorded investment in loans includes $ 13,929 in accrued interest.
The risk category of loans by class of loans at December 31, 2019 is as follows:
−Removed: December 31, 2019
+Added: December 31, 2019 Pass Special
+Added: Mention Substandard Doubtful Total
Commercial and Industrial Loans and Leases $ 556,706 $ 19,671 $ 15,026 $ — $ 591,403
1 unchanged sentence
Agricultural Loans 325,991 49,053 15,827 — 390,871
+Added: Total $ 2,336,007 $ 99,228 $ 46,903 $ — $ 2,482,138
Loans Acquired With Deteriorated Credit Quality
(Included in the Total Above)
+Added: $ 68 $ 613 $ 11,060 $ — $ 11,741
Loans Acquired in Current Year
(Included in the Total Above)
+Added: $ 254,629 $ 16,535 $ 12,769 $ — $ 283,933
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
1 unchanged sentence
The following table presents the recorded investment in home equity, consumer and residential mortgage loans based on payment activity as of December 31, 2019:
−Removed: December 31, 2019
+Added: December 31, 2019 Home Equity
+Added: Loans Consumer
+Added: Loans Residential
Mortgage Loans
+Added: Performing $ 226,695 $ 81,314 $ 303,065
Nonperforming 80 115 2,495
+Added: Total $ 226,775 $ 81,429 $ 305,560
The following table presents financing receivables purchased and/or sold during the year by portfolio segment:
−Removed: December 31, 2019
−Removed: Commercial and Industrial Loans and Leases
−Removed: Commercial Real Estate Loans
+Added: December 31, 2019 Commercial and Industrial Loans and Leases Commercial Real Estate Loans Total
+Added: Purchases $ 2,051 $ — $ 2,051
NOTE 7 – Repurchase Agreements Accounted for as Secured Borrowings
Repurchase agreements are short-term borrowings included in FHLB Advances and Other Borrowings and mature overnight and continuously.
−Removed: Repurchase agreements, which were secured by mortgage-backed securities, totaled $ 73,199 and $ 39,425 as of June 30, 2020 and December 31, 2019, respectively.
+Added: Repurchase agreements, which were secured by mortgage-backed securities, totaled $ 72,981 and $ 39,425 as of September 30, 2020 and December 31, 2019, respectively.
Risk could arise when the collateral pledged to a repurchase agreement declines in fair value.
3 unchanged sentences
The Company’s operations include three primary segments:
−Removed: core banking, trust and investment advisory services, and insurance operations.
+Added: core banking, wealth management 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.
−Removed: The trust and investment advisory services segment involves providing trust, investment advisory, and brokerage services to customers.
+Added: The wealth management segment involves providing trust, investment advisory, and brokerage 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.
−Removed: The core banking segment is comprised by the Company’s banking subsidiary, German American Bank, which operated through 74 banking offices at June 30, 2020.
+Added: The core banking segment is comprised by the Company’s banking subsidiary, German American Bank, which operated through 73 banking offices at September 30, 2020.
Net interest income from loans and investments funded by deposits and borrowings is the primary revenue for the core-banking segment.
−Removed: The trust and investment advisory services segment’s revenues are comprised primarily of fees generated by the trust operations of the Company's banking subsidiary and by German American Investment Services, Inc.
+Added: The wealth management segment’s revenues are comprised primarily of 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, and brokerage services to its customers.
7 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 8 - Segment Information (continued)
−Removed: Trust and Investment Advisory Services
−Removed: Consolidated Totals
+Added: Banking Wealth Management Services Insurance Other Consolidated Totals
Three Months Ended
−Removed: June 30, 2020
+Added: September 30, 2020
Net Interest Income $ 39,039 $ 4 $ 2 $ ( 657 ) $ 38,388
8 unchanged sentences
Segment Profit (Loss) 14,628 321 216 ( 572 ) 14,593
−Removed: Segment Assets at June 30, 2020
−Removed: Trust and Investment Advisory Services
−Removed: Consolidated Totals
+Added: Segment Assets at September 30, 2020 4,837,899 4,283 10,247 401 4,852,830
+Added: Banking Wealth Management Services Insurance Other Consolidated Totals
Three Months Ended
−Removed: June 30, 2019
+Added: September 30, 2019
Net Interest Income $ 39,302 $ 4 $ 5 $ ( 733 ) $ 38,578
11 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 8 - Segment Information (continued)
−Removed: Trust and Investment Advisory Services
−Removed: Consolidated Totals
−Removed: Six Months Ended
−Removed: June 30, 2020
+Added: Banking Wealth Management Services Insurance Other Consolidated Totals
+Added: Nine Months Ended
+Added: September 30, 2020
Net Interest Income $ 115,148 $ 12 $ 9 $ ( 2,066 ) $ 113,103
8 unchanged sentences
Segment Profit (Loss) 40,573 991 1,437 ( 1,681 ) 41,320
−Removed: Segment Assets at June 30, 2020
−Removed: Trust and Investment Advisory Services
−Removed: Consolidated Totals
−Removed: Six Months Ended
−Removed: June 30, 2019
+Added: Segment Assets at September 30, 2020 4,837,899 4,283 10,247 401 4,852,830
+Added: Banking Wealth Management Services Insurance Other Consolidated Totals
+Added: Nine Months Ended
+Added: September 30, 2019
Net Interest Income $ 107,619 $ 10 $ 14 $ ( 1,833 ) $ 105,810
12 unchanged sentences
On a share basis, the amount of common stock subject to the repurchase plan represents approximately 4 % of the Company’s outstanding shares.
−Removed: The Company is not obligated to purchase any shares under the plan, and the plan may be discontinued at any time.
+Added: The Company is not obligated to purchase shares under the plan, and the plan may be discontinued at any time.
The actual timing, number and share price of shares purchased under the repurchase plan will be determined by the Company at its discretion and will depend upon such factors as the market price of the stock, general market and economic conditions and applicable legal requirements.
4 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
1 unchanged sentence
During the periods presented, the Company maintained two equity incentive plans under which stock options, restricted stock, and other equity incentive awards could be granted.
−Removed: Those plans include (i) the Company’s 2009 Long-Term Equity Incentive Plan, under which no new grants may be made (the “2009 LTI Plan”), and (ii) the Company’s 2019 Long-Term Equity Incentive Plan (the “2019 LTI Plan”).
+Added: Those plans include (i) the Company’s 2009 Long-Term Equity Incentive Plan, under which no new grants may be made, and (ii) the Company’s 2019 Long-Term Equity Incentive Plan (the “2019 LTI Plan”).
The 2019 LTI Plan, which authorizes a maximum aggregate issuance of 1,000,000 shares of common stock (subject to certain permitted adjustments), became effective on May 16, 2019, following approval of the Company’s shareholders.
It will remain in effect until May 16, 2029, or until all shares of common stock subject to the 2019 LTI Plan are distributed, all awards have expired or terminated, or the plan is terminated pursuant to its terms, whichever occurs first.
−Removed: For the three and six months ended June 30, 2020 and 2019, the Company granted no options.
−Removed: The Company recorded no stock compensation expense applicable to options during the three and six months ended June 30, 2020 and 2019.
+Added: For the three and nine months ended September 30, 2020 and 2019, the Company granted no options.
+Added: The Company recorded no stock compensation expense applicable to options during the three and nine months ended September 30, 2020 and 2019.
In addition, there was no unrecognized option expense.
7 unchanged sentences
For measuring compensation costs, restricted stock awards are valued based upon the market value of the common shares on the date of grant.
−Removed: During the three and six months ended June 30, 2020, the Company awarded grants of 1,426 and 43,178 of restricted stock, respectively.
−Removed: During the six months ended June 30, 2019, the Company granted awards of 24,780 of restricted stock.
−Removed: No awards were granted during the three months ended June 30, 2019.
−Removed: Total unvested restricted stock awards at June 30, 2020 and December 31, 2019 were 86,457 and 43,279 , respectively.
+Added: During the three and nine months ended September 30, 2020, the Company awarded grants of 1,192 and 44,370 of restricted stock, respectively.
+Added: During the three and nine months ended September 30, 2019, the Company granted awards of 5,466 and 31,329 of restricted stock.
+Added: Total unvested restricted stock awards at September 30, 2020 and December 31, 2019 were 86,079 and 43,279 , respectively.
The following table presents expense recorded for restricted stock and cash entitlements as well as the related tax information for the periods presented:
Three Months Ended
+Added: September 30,
Restricted Stock Expense $ 254 $ 311
Cash Entitlement Expense 249 167
−Removed: Six Months Ended
+Added: Tax Effect ( 125 ) ( 124 )
+Added: Net of Tax $ 378 $ 354
+Added: Nine Months Ended
+Added: September 30,
Restricted Stock Expense $ 806 $ 972
Cash Entitlement Expense 737 509
−Removed: Unrecognized expense associated with the restricted stock grants and cash entitlements totaled $ 1,535 and $ 2,463 as of June 30, 2020 and 2019, respectively.
+Added: Tax Effect ( 384 ) ( 386 )
+Added: Net of Tax $ 1,159 $ 1,095
+Added: Unrecognized expense associated with the restricted stock grants and cash entitlements totaled $ 1,071 and $ 2,356 as of September 30, 2020 and 2019, respectively.
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
10 unchanged sentences
Funding for the purchase of common stock is from employee and Company contributions.
−Removed: For the three months ended June 30, 2020, the Company recorded $ 3 of expense, $ 2 net of tax, for the employee stock purchase plan.
−Removed: For the six months ended June 30, 2020, the Company recorded $ 19 of expense, $ 14 net of tax, for the employee stock purchase plan.
+Added: For the three months ended September 30, 2020, the Company recorded $ 11 of expense, $ 8 net of tax, for the employee stock purchase plan.
+Added: For the nine months ended September 30, 2020, the Company recorded $ 30 of expense, $ 23 net of tax, for the employee stock purchase plan.
As an annual plan, the expense for the 2009 ESPP was recorded in the third quarter of each year.
−Removed: There was no expense recorded for the employee stock purchase plan during the three and six months ended June 30, 2019.
−Removed: There was no unrecognized compensation expense as of June 30, 2020 and 2019 for the employee stock purchase plan.
+Added: For the three and nine months ended September 30, 2020, the Company recorded $ 30 of expense, $ 22 net of tax, for the employee stock purchase plan.
+Added: There was no unrecognized compensation expense as of September 30, 2020 and 2019 for the employee stock purchase plan.
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
13 unchanged sentences
Level 3 pricing is obtained from a third-party based upon similar trades that are not traded frequently without adjustment by the Company.
−Removed: At June 30, 2020, the Company held $ 2.5 million in Level 3 securities which consist of non-rated Obligations of State and Political Subdivisions.
+Added: At September 30, 2020, the Company held $ 497 thousand in Level 3 securities which consist of non-rated Obligations of State and Political Subdivisions.
Absent the credit rating, significant assumptions must be made such that the credit risk input becomes an unobservable input and thus these investment securities are reported by the Company in a Level 3 classification.
18 unchanged sentences
In cases where the carrying amount exceeds the fair value, less costs to sell, impairment loss is recognized.
−Removed: Loans Held-for-Sale:
−Removed: The fair values of loans held for sale are determined by using quoted prices for similar assets, adjusted for specific attributes of that loan resulting in a Level 2 classification.
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 11 - Fair Value (continued)
+Added: Loans Held-for-Sale:
+Added: The fair values of loans held for sale are determined by using quoted prices for similar assets, adjusted for specific attributes of that loan resulting in a Level 2 classification.
Assets and Liabilities Measured on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis, including financial assets and liabilities for which the Company has elected the fair value option, are summarized below:
−Removed: Fair Value Measurements at June 30, 2020 Using
−Removed: Quoted Prices in Active Markets for Identical Assets (Level 1)
−Removed: Significant Other Observable Inputs (Level 2)
−Removed: Unobservable Inputs (Level 3)
+Added: Fair Value Measurements at September 30, 2020 Using
+Added: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant
+Added: Inputs (Level 3) Total
Obligations of State and Political Subdivisions $ — $ 513,515 $ 497 $ 514,012
+Added: MBS/CMO — 522,898 — 522,898
Total Securities $ — $ 1,036,413 $ 497 $ 1,036,910
3 unchanged sentences
Fair Value Measurements at December 31, 2019 Using
−Removed: Quoted Prices in Active Markets for Identical Assets (Level 1)
−Removed: Significant Other Observable Inputs (Level 2)
−Removed: Unobservable Inputs (Level 3)
+Added: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant
+Added: Unobservable Inputs (Level 3) Total
Obligations of State and Political Subdivisions $ — $ 320,279 $ 4,021 $ 324,300
+Added: MBS/CMO — 530,525 — 530,525
Total Securities $ — $ 850,804 $ 4,021 $ 854,825
2 unchanged sentences
Derivative Liabilities $ — $ 2,829 $ — $ 2,829
−Removed: As of June 30, 2020 and December 31, 2019, the aggregate fair value, contractual balance (including accrued interest), and gain or loss on Loans Held-for-Sale was as follows:
−Removed: June 30, 2020
−Removed: December 31, 2019
+Added: As of September 30, 2020 and December 31, 2019, the aggregate fair value, contractual balance (including accrued interest), and gain or loss on Loans Held-for-Sale was as follows:
+Added: September 30, 2020 December 31, 2019
Aggregate Fair Value $ 27,993 $ 17,713
Contractual Balance 27,328 17,378
−Removed: The total amount of gains and losses from changes in fair value included in earnings for the three and six months ended June 30, 2020 were $ 92 and $ 97 , respectively.
−Removed: The total amount of gains and losses from changes in fair value included in earnings for the three and six months ended June 30, 2019 were $ 93 and $ 227 , respectively.
+Added: Gain (Loss) 665 335
+Added: The total amount of gains and losses from changes in fair value included in earnings for the three and nine months ended September 30, 2020 were $ 233 and $ 330 , respectively.
+Added: The total amount of gains and losses from changes in fair value included in earnings for the three and nine months ended September 30, 2019 were $ 112 and $ 339 , respectively.
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 11 - Fair Value (continued)
−Removed: The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2020 and 2019:
+Added: The table below presents a reconciliation of all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2020 and 2019:
Obligations of State and Political Subdivisions
−Removed: Balance of Recurring Level 3 Assets at April 1
+Added: Balance of Recurring Level 3 Assets at July 1 $ 2,495 $ 4,506
Total Gains or Losses Included in Other Comprehensive Income ( 3 ) ( 1 )
Maturities / Calls ( 1,995 ) ( 475 )
−Removed: Balance of Recurring Level 3 Assets at June 30
+Added: Purchases — —
+Added: Balance of Recurring Level 3 Assets at September 30 $ 497 $ 4,030
Obligations of State and Political Subdivisions
2 unchanged sentences
Maturities / Calls ( 3,498 ) ( 945 )
−Removed: Balance of Recurring Level 3 Assets at June 30
−Removed: Of the total gain/loss included in earnings for the three and six months ended June 30, 2020 and 2019, ( $ 7 ) and ( $ 23 ) was attributable to other changes in fair value, respectively.
−Removed: Of the total gain/loss included in earnings for the three and six months ended June 30, 2019, ( $ 6 ) and ( $ 15 ) was attributable to other changes in fair value, respectively.
+Added: Purchases — —
+Added: Balance of Recurring Level 3 Assets at September 30 $ 497 $ 4,030
+Added: Of the total gain/loss included in earnings for the three and nine months ended September 30, 2020, ($ 3 ) and ($ 26 ) was attributable to other changes in fair value, respectively.
+Added: Of the total gain/loss included in earnings for the three and nine months ended September 30, 2019, ($ 1 ) and ($ 16 ) was attributable to other changes in fair value, respectively.
Assets and Liabilities Measured on a Non-Recurring Basis
Assets and liabilities measured at fair value on a non-recurring basis are summarized below:
−Removed: Fair Value Measurements at June 30, 2020 Using
−Removed: Quoted Prices in Active Markets for Identical Assets (Level 1)
−Removed: Significant Other Observable Inputs (Level 2)
−Removed: Significant Unobservable
−Removed: Inputs (Level 3)
+Added: Fair Value Measurements at September 30, 2020 Using
+Added: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable
+Added: Inputs (Level 3) Total
Individually Analyzed Loans
5 unchanged sentences
Residential Mortgage Loans $ — $ — $ 191 $ 191
−Removed: Fair value for collateral dependent loans, had a carrying amount of $ 17,000 with a valuation allowance of $ 8,313 , resulting in a decrease to the provision for credit losses of $ 163 for the three months ended June 30, 2020 and an increase to the provision for credit losses of $ 1,686 for the six months ended June 30, 2020.
−Removed: As discussed in Note 2 - Recent Accounting Pronouncements, the Company adopted ASC 326 on January 1, 2020.
−Removed: The table below is based upon previously applicable GAAP.
+Added: Fair value for collateral dependent loans, had a carrying amount of $ 22,621 with a valuation allowance of $ 7,344 , resulting in an increase to the provision for credit losses of $ 136 for the three months ended September 30, 2020 and an increase to the provision for credit losses of $ 1,822 for the nine months ended September 30, 2020.
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 11 - Fair Value (continued)
+Added: As discussed in Note 2 - Recent Accounting Pronouncements, the Company adopted ASC 326 on January 1, 2020.
+Added: The table below is based upon previously applicable GAAP.
Fair Value Measurements at December 31, 2019 Using
−Removed: Quoted Prices in Active Markets for Identical Assets (Level 1)
−Removed: Significant Other Observable Inputs (Level 2)
−Removed: Significant Unobservable
−Removed: Inputs (Level 3)
+Added: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable
+Added: Inputs (Level 3) Total
Impaired Loans
2 unchanged sentences
Impaired loans, which are measured for impairment using the fair value of the collateral for collateral dependent loans, had a carrying amount of $ 5,574 with a valuation allowance of $ 2,971 , resulting in a decrease to the provision for loan losses of $ 1,149 for the year ended December 31, 2019.
−Removed: There was no Other Real Estate carried at fair value less costs to sell at June 30, 2020.
−Removed: No charge to earnings was included in the three or six months ended June 30, 2020 and 2019.
+Added: There was no Other Real Estate carried at fair value less costs to sell at September 30, 2020.
+Added: No charge to earnings was included in the three or nine months ended September 30, 2020 and 2019.
There was no Other Real Estate carried at fair value less costs to sell at December 31, 2019.
No charge to earnings was included in the year ended December 31, 2019.
−Removed: The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at June 30, 2020 and December 31, 2019:
−Removed: June 30, 2020
−Removed: Valuation Technique(s)
−Removed: Unobservable Input(s)
−Removed: Range (Weighted Average)
−Removed: Individual Analyzed Loans - Commercial and Industrial Loans
−Removed: Sales comparison approach
−Removed: Adjustment for physical condition of comparable properties sold
−Removed: Individual Analyzed Loans - Commercial Real Estate Loans
−Removed: Sales comparison approach
−Removed: Adjustment for physical condition of comparable properties sold
−Removed: Individual Analyzed Loans - Agricultural Loans
−Removed: Sales comparison approach
−Removed: Adjustment for physical condition of comparable properties sold
−Removed: Individual Analyzed Loans - Consumer Loans
−Removed: Sales comparison approach
−Removed: Adjustment for physical condition of comparable properties sold
−Removed: Individual Analyzed Loans - Home Equity Loans
−Removed: Sales comparison approach
−Removed: Adjustment for physical condition of comparable properties sold
−Removed: Individual Analyzed Loans - Residential Mortgage Loans
−Removed: Sales comparison approach
−Removed: Adjustment for physical condition of comparable properties sold
−Removed: December 31, 2019
−Removed: Valuation Technique(s)
−Removed: Unobservable Input(s)
−Removed: Range (Weighted Average)
−Removed: Impaired Loans - Commercial and Industrial Loans
−Removed: Sales comparison approach
−Removed: Adjustment for physical condition of comparable properties sold
−Removed: Impaired Loans - Commercial Real Estate Loans
−Removed: Sales comparison approach
−Removed: Adjustment for physical condition of comparable properties sold
+Added: The following tables present quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2020 and December 31, 2019:
+Added: September 30, 2020 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average)
+Added: Individual Analyzed Loans -
+Added: Commercial and Industrial Loans $ 4,778 Sales comparison approach Adjustment for physical condition of comparable properties sold 30 %- 100 %
+Added: Individual Analyzed Loans -
+Added: Commercial Real Estate Loans $ 9,372 Sales comparison approach Adjustment for physical condition of comparable properties sold 30 %- 100 %
+Added: Individual Analyzed Loans -
+Added: Agricultural Loans $ 550 Sales comparison approach Adjustment for physical condition of comparable properties sold 30 %- 100 %
+Added: Individual Analyzed Loans -
+Added: Consumer Loans $ 18 Sales comparison approach Adjustment for physical condition of comparable properties sold 24 %- 99 %
+Added: Individual Analyzed Loans -
+Added: Home Equity Loans $ 368 Sales comparison approach Adjustment for physical condition of comparable properties sold 9 %- 9 %
+Added: Individual Analyzed Loans -
+Added: Residential Mortgage Loans $ 191 Sales comparison approach Adjustment for physical condition of comparable properties sold 19 %- 93 %
+Added: December 31, 2019 Fair Value Valuation Technique(s) Unobservable Input(s) Range (Weighted Average)
+Added: Impaired Loans -
+Added: Commercial and Industrial Loans $ 2,109 Sales comparison approach Adjustment for physical condition of comparable properties sold 29 %- 100 %
+Added: Impaired Loans -
+Added: Commercial Real Estate Loans $ 493 Sales comparison approach Adjustment for physical condition of comparable properties sold 47 %- 91 %
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 11 - Fair Value (continued)
−Removed: The carrying amounts and estimated fair values of the Company’s financial instruments not previously presented are provided in the tables below for the periods ending June 30, 2020 and December 31, 2019.
+Added: The carrying amounts and estimated fair values of the Company’s financial instruments not previously presented are provided in the tables below for the periods ending September 30, 2020 and December 31, 2019.
Not all of the Company’s assets and liabilities are considered financial instruments, and therefore are not included in the tables.
Because no active market exists for a significant portion of the Company’s financial instruments, fair value estimates were based on subjective judgments, and therefore cannot be determined with precision.
−Removed: In accordance with the adoption of ASU 2016-01, the tables below for June 30, 2020 and December 31, 2019, present the fair values measured using an exit price notion.
+Added: In accordance with the adoption of ASU 2016-01, the tables below for September 30, 2020 and December 31, 2019, present the fair values measured using an exit price notion.
Fair Value Measurements at
−Removed: June 30, 2020 Using
−Removed: Carrying Value
+Added: September 30, 2020 Using
+Added: Carrying Value Level 1 Level 2 Level 3 Total
Financial Assets:
1 unchanged sentence
Interest Bearing Time Deposits with Banks 1,489 — 1,489 — 1,489
+Added: Loans, Net 3,159,082 — — 3,175,885 3,175,885
Accrued Interest Receivable 20,452 — 5,435 15,017 20,452
7 unchanged sentences
December 31, 2019 Using
−Removed: Carrying Value
+Added: Carrying Value Level 1 Level 2 Level 3 Total
Financial Assets:
1 unchanged sentence
Interest Bearing Time Deposits with Banks 1,985 — 1,985 — 1,985
+Added: Loans, Net 3,058,211 — — 3,056,521 3,056,521
Accrued Interest Receivable 18,425 — 4,400 14,025 18,425
7 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 12 - Other Comprehensive Income (Loss)
−Removed: The tables below summarize the changes in accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2020 and 2019, net of tax:
−Removed: June 30, 2020
−Removed: Unrealized Gains and Losses on Available-for-Sale Securities
−Removed: Postretirement Benefit Items
−Removed: Beginning Balance at April 1, 2020
+Added: The tables below summarize the changes in accumulated other comprehensive income (loss) by component for the three and nine months ended September 30, 2020 and 2019, net of tax:
+Added: September 30, 2020 Unrealized Gains and Losses on Available-for-Sale Securities Postretirement Benefit Items Total
+Added: Beginning Balance at July 1, 2020 $ 31,717 $ ( 568 ) $ 31,149
Other Comprehensive Income (Loss) Before Reclassification 74 — 74
1 unchanged sentence
Net Current Period Other Comprehensive Income (Loss) ( 406 ) — ( 406 )
−Removed: Ending Balance at June 30, 2020
−Removed: June 30, 2020
−Removed: Unrealized Gains and Losses on Available-for-Sale Securities
−Removed: Postretirement Benefit Items
+Added: Ending Balance at September 30, 2020 $ 31,311 $ ( 568 ) $ 30,743
+Added: September 30, 2020 Unrealized Gains and Losses on Available-for-Sale Securities Postretirement Benefit Items Total
Beginning Balance at January 1, 2020 $ 15,673 $ ( 568 ) $ 15,105
2 unchanged sentences
Net Current Period Other Comprehensive Income (Loss) 15,638 — 15,638
−Removed: Ending Balance at June 30, 2020
−Removed: June 30, 2019
−Removed: Unrealized Gains and Losses on Available-for-Sale Securities
−Removed: Postretirement Benefit Items
−Removed: Beginning Balance at April 1, 2019
+Added: Ending Balance at September 30, 2020 $ 31,311 $ ( 568 ) $ 30,743
+Added: September 30, 2019 Unrealized Gains and Losses on Available-for-Sale Securities Postretirement Benefit Items Total
+Added: Beginning Balance at July 1, 2019 $ 11,546 $ ( 339 ) $ 11,207
Other Comprehensive Income (Loss) Before Reclassification 4,896 — 4,896
1 unchanged sentence
Net Current Period Other Comprehensive Income (Loss) 4,649 — 4,649
−Removed: Ending Balance at June 30, 2019
−Removed: GERMAN AMERICAN BANCORP, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
−Removed: (unaudited, dollars in thousands except share and per share data)
−Removed: NOTE 12 - Other Comprehensive Income (Loss) (continued)
−Removed: June 30, 2019
−Removed: Unrealized Gains and Losses on Available-for-Sale Securities
−Removed: Postretirement Benefit Items
+Added: Ending Balance at September 30, 2019 $ 16,195 $ ( 339 ) $ 15,856
+Added: September 30, 2019 Unrealized Gains and Losses on Available-for-Sale Securities Postretirement Benefit Items Total
Beginning Balance at January 1, 2019 $ ( 6,759 ) $ ( 339 ) $ ( 7,098 )
2 unchanged sentences
Net Current Period Other Comprehensive Income (Loss) 22,954 — 22,954
−Removed: Ending Balance at June 30, 2019
−Removed: The tables below summarize the classifications out of accumulated other comprehensive income (loss) by component for the three and six months ended June 30, 2020 and 2019:
−Removed: Details about Accumulated Other Comprehensive Income (Loss) Components
−Removed: Amount Reclassified From Accumulated Other Comprehensive Income (Loss)
−Removed: Affected Line Item in the Statement Where Net Income is Presented
−Removed: Unrealized Gains and Losses on Available-for-Sale Securities
−Removed: Net Gains on Securities
−Removed: Income Tax Expense
−Removed: Total Reclassifications for the Three Months Ended June 30, 2020
−Removed: Details about Accumulated Other Comprehensive Income (Loss) Components
−Removed: Amount Reclassified From Accumulated Other Comprehensive Income (Loss)
−Removed: Affected Line Item in the Statement Where Net Income is Presented
−Removed: Unrealized Gains and Losses on Available-for-Sale Securities
−Removed: Net Gains on Securities
−Removed: Income Tax Expense
−Removed: Total Reclassifications for the Six Months Ended June 30, 2020
+Added: Ending Balance at September 30, 2019 $ 16,195 $ ( 339 ) $ 15,856
GERMAN AMERICAN BANCORP, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
+Added: September 30, 2020
(unaudited, dollars in thousands except share and per share data)
NOTE 12 - Other Comprehensive Income (Loss) (continued)
−Removed: Details about Accumulated Other Comprehensive Income (Loss) Components
−Removed: Amount Reclassified From Accumulated Other Comprehensive Income (Loss)
−Removed: Affected Line Item in the Statement Where Net Income is Presented
−Removed: Unrealized Gains and Losses on Available-for-Sale Securities
−Removed: Net Gains on Securities
+Added: The tables below summarize the classifications out of accumulated other comprehensive income (loss) by component for the three and nine months ended September 30, 2020 and 2019:
+Added: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income is Presented
+Added: Unrealized Gains and Losses on
+Added: Available-for-Sale Securities $ 607 Net Gains on Securities
( 127 ) Income Tax Expense
−Removed: Total Reclassifications for the Three Months Ended June 30, 2019
−Removed: Details about Accumulated Other Comprehensive Income (Loss) Components
−Removed: Amount Reclassified From Accumulated Other Comprehensive Income (Loss)
−Removed: Affected Line Item in the Statement Where Net Income is Presented
−Removed: Unrealized Gains and Losses on Available-for-Sale Securities
−Removed: Net Gains on Securities
+Added: 480 Net of Tax
+Added: Total Reclassifications for the Three
+Added: Months Ended September 30, 2020 $ 480
+Added: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income is Presented
+Added: Unrealized Gains and Losses on
+Added: Available-for-Sale Securities $ 2,190 Net Gains on Securities
( 464 ) Income Tax Expense
−Removed: Total Reclassifications for the Six Months Ended June 30, 2019
+Added: 1,726 Net of Tax
+Added: Total Reclassifications for the Nine
+Added: Months Ended September 30, 2020 $ 1,726
+Added: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income is Presented
+Added: Unrealized Gains and Losses on
+Added: Available-for-Sale Securities $ 313 Net Gains on Securities
+Added: ( 66 ) Income Tax Expense
+Added: 247 Net of Tax
+Added: Total Reclassifications for the Three
+Added: Months Ended September 30, 2019 $ 247
+Added: Details about Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified From Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement Where Net Income is Presented
+Added: Unrealized Gains and Losses on
+Added: Available-for-Sale Securities $ 984 Net Gains on Securities
+Added: ( 207 ) Income Tax Expense
+Added: 777 Net of Tax
+Added: Total Reclassifications for the Nine
+Added: Months Ended September 30, 2019 $ 777
+Added: GERMAN AMERICAN BANCORP, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: September 30, 2020
+Added: (unaudited, dollars in thousands except share and per share data)
NOTE 13 - Revenue Recognition
The following tables present non-interest income, segregated by revenue streams in-scope and out-of-scope of FASB ASU No.
−Removed: 2014-09, Revenue from Contracts with Customers (Topic 606), for the three and six months ended June 30, 2020 and 2019.
+Added: 2014-09, Revenue from Contracts with Customers (Topic 606), for the three and nine months ended September 30, 2020 and 2019.
Trust and investment product fees are included in the trust and investment advisory services segment while insurance revenues are included in the insurance segment.
1 unchanged sentence
Three Months Ended
+Added: September 30,
Non-interest Income 2020 2019
8 unchanged sentences
Total Non-interest Income $ 13,279 $ 12,056
−Removed: GERMAN AMERICAN BANCORP, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
−Removed: (unaudited, dollars in thousands except share and per share data)
−Removed: NOTE 13 - Revenue Recognition (continued)
−Removed: Six Months Ended
+Added: Nine Months Ended
+Added: September 30,
Non-interest Income 2020 2019
19 unchanged sentences
The Company earns trust and investment brokerage fees from its contracts with trust and brokerage customers to manage assets for investment and/or to transact their accounts.
−Removed: These fees are primarily earned over time as the Company provides the contracted monthly or quarterly services and are generally assessed based on the market value of assets under management at month-end.
+Added: These fees are primarily earned over
+Added: GERMAN AMERICAN BANCORP, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: September 30, 2020
+Added: (unaudited, dollars in thousands except share and per share data)
+Added: NOTE 13 - Revenue Recognition (continued)
+Added: time as the Company provides the contracted monthly or quarterly services and are generally assessed based on the market value of assets under management at month-end.
Fees that are transaction based, including trade execution services, are recognized at the point in time that the transaction is executed (trade date).
9 unchanged sentences
The lease liability is included in the 'Accrued Interest Payable and Other Liabilities' line of the consolidated balance sheet.
−Removed: GERMAN AMERICAN BANCORP, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
−Removed: (unaudited, dollars in thousands except share and per share data)
−Removed: NOTE 14 - Leases (continued)
The Company used the implicit lease rate when determining the present value of lease payments for finance leases.
The present value of lease payments for operating leases was determined using the incremental borrowing rate as of the date the Company adopted this standard.
−Removed: The components of lease expense for the three months ended June 30, were as follows:
−Removed: Three Months Ended
−Removed: Three Months Ended
−Removed: June 30, 2020
−Removed: June 30, 2019
+Added: The components of lease expense for the three months ended September 30, were as follows:
+Added: Three Months Ended Three Months Ended
+Added: September 30, 2020 September 30, 2019
Finance Lease Cost:
4 unchanged sentences
Total Lease Cost $ 589 $ 800
−Removed: The components of lease expense for the six months ended June 30, were as follows:
−Removed: Six Months Ended
−Removed: Six Months Ended
−Removed: June 30, 2020
−Removed: June 30, 2019
+Added: The components of lease expense for the nine months ended September 30, were as follows:
+Added: Nine Months Ended Nine Months Ended
+Added: September 30, 2020 September 30, 2019
Finance Lease Cost:
4 unchanged sentences
Total Lease Cost $ 1,817 $ 1,845
+Added: GERMAN AMERICAN BANCORP, INC.
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: September 30, 2020
+Added: (unaudited, dollars in thousands except share and per share data)
+Added: NOTE 14 - Leases (continued)
The weighted average lease term and discount rates were as follows:
−Removed: June 30, 2020
−Removed: June 30, 2019
+Added: September 30, 2020 September 30, 2019
Weighted Average Remaining Lease Term:
−Removed: Finance Leases
−Removed: Operating Leases
+Added: Finance Leases 11 years 12 years
+Added: Operating Leases 8 years 8 years
Weighted Average Discount Rate:
2 unchanged sentences
Supplemental balance sheet information related to leases was as follows:
−Removed: June 30, 2020
−Removed: June 30, 2019
+Added: September 30, 2020 September 30, 2019
Finance Leases
4 unchanged sentences
Operating Lease Liabilities 8,675 9,900
−Removed: GERMAN AMERICAN BANCORP, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
−Removed: (unaudited, dollars in thousands except share and per share data)
−Removed: NOTE 14 - Leases (continued)
Supplemental cash flow information related to leases was as follows:
−Removed: Six Months Ended
−Removed: Six Months Ended
−Removed: June 30, 2020
−Removed: June 30, 2019
+Added: Nine Months Ended Nine Months Ended
+Added: September 30, 2020 September 30, 2019
Cash paid for amounts in the measurement of lease liabilities:
3 unchanged sentences
The following table presents a maturity analysis of Finance and Operating Lease Liabilities:
−Removed: June 30, 2020
−Removed: Finance Leases
−Removed: Operating Leases
+Added: September 30, 2020
+Added: Finance Leases Operating Leases
+Added: Year 1 $ 519 $ 1,594
+Added: Year 2 519 1,385
+Added: Year 3 519 1,275
+Added: Year 4 519 1,115
+Added: Year 5 519 964
+Added: Thereafter 3,083 3,631
Total Lease Payments 5,678 9,964
Less Imputed Interest ( 2,413 ) ( 1,289 )
−Removed: NOTE 15 - Business Combinations
−Removed: Citizens First Acquisition
−Removed: Effective July 1, 2019, the Company acquired Citizens First Corporation (“Citizens First”) and its subsidiary, Citizens First Bank, Inc., pursuant to an Agreement and Plan of Reorganization dated February 22, 2019.
−Removed: The acquisition was accomplished by the merger of Citizens First with and into the Company, immediately followed by the merger of Citizens First Bank with and into the Company’s subsidiary bank, German American Bank.
−Removed: Citizens First Bank operated 8 banking offices in Barren, Hart, Simpson and Warren Counties in Kentucky.
−Removed: Citizens First's consolidated assets and equity (unaudited) as of July 1, 2019 totaled $ 456.0 million and $ 49.8 million , respectively.
−Removed: The Company accounted for the transaction under the acquisition method of accounting which means that the acquired assets and liabilities were recorded at fair value at the date of acquisition.
−Removed: In accordance with ASC 805, the Company has expensed approximately $ 3.3 million of direct acquisition costs and recorded $ 17.7 million of goodwill and $ 4.5 million of intangible assets.
−Removed: The intangible assets are related to core deposits and are being amortized over 8 years .
−Removed: For tax purposes, goodwill totaling $ 17.7 million is non-deductible but will be evaluated annually for impairment.
−Removed: The following table summarizes the fair value of the total consideration transferred as a part of the Citizens First acquisition as well as the fair value of identifiable assets acquired and liabilities assumed as of the effective date of the transaction.
−Removed: GERMAN AMERICAN BANCORP, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
−Removed: (unaudited, dollars in thousands except share and per share data)
−Removed: NOTE 15 - Business Combinations (continued)
−Removed: Consideration
−Removed: Cash for Options and Fractional Shares
−Removed: Cash Consideration
−Removed: Equity Instruments
−Removed: Fair Value of Total Consideration Transferred
−Removed: Recognized Amounts of Identifiable Assets Acquired and Liabilities Assumed:
−Removed: Interest-bearing Time Deposits with Banks
−Removed: Stock in FHLB of Indianapolis and Other Restricted Stock, at Cost
−Removed: Premises, Furniture & Equipment
−Removed: Other Real Estate
−Removed: Intangible Assets
−Removed: Company Owned Life Insurance
−Removed: Accrued Interest Receivable and Other Assets
−Removed: Deposits - Non-interest Bearing
−Removed: Deposits - Interest Bearing
−Removed: FHLB Advances and Other Borrowings
−Removed: Accrued Interest Payable and Other Liabilities
−Removed: Total Identifiable Net Assets
−Removed: Under the terms of the merger agreement, each Citizens First common shareholder of record at the effective time of the merger (other than those holding shares in the Citizens First Bank 401(k) Profit Sharing Plan (the "CFB 401(k) Plan")) became entitled to receive a cash payment of $ 5.80 and a 0.6629 share of common stock of the Company for each of their former shares of Citizens First common stock.
−Removed: In addition, as record holder of shares of Citizens First common stock held in the CFB 401(k) Plan, the plan administrator was entitled to receive a cash payment of $ 25.77 for each share held by the CFB 401(k) Plan, which amount is equal to (i) the exchange ratio multiplied by the closing trading price of the Company's common stock on June 28, 2019, plus (ii) $ 5.80 .
−Removed: As a result, in connection with the closing of the merger on July 1, 2019, the Company issued approximately 1,664,000 shares of its common stock to the former shareholders of Citizens First and paid cash consideration in the aggregate amount of $ 15.5 million .
−Removed: This acquisition is consistent with the Company's strategy to build a regional presence in central and western Kentucky.
−Removed: The acquisition offers the Company the opportunity to increase profitability by introducing existing products and services to the acquired customer base as well as add new customers in the expanded region.
−Removed: The fair value of net assets acquired includes fair value adjustments to certain receivables that were not considered impaired as of the acquisition date.
−Removed: The fair value adjustments were determined using discounted cash flows.
−Removed: However, the Company believes that all contractual cash flows related to these financial instruments will be collected.
−Removed: As such, these receivables were not considered impaired at the acquisition date and were not subject to the guidance relating to purchased credit impaired loans, which are loans that have shown evidence of credit deterioration since origination.
−Removed: Receivables acquired that were not subject to these requirements
−Removed: GERMAN AMERICAN BANCORP, INC.
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: June 30, 2020
−Removed: (unaudited, dollars in thousands except share and per share data)
−Removed: NOTE 15 - Business Combinations (continued)
−Removed: include non-impaired loans and customer receivables with a fair value of $ 349.9 million and unpaid principal of $ 353.3 million on the date of acquisition.
−Removed: The following table presents unaudited pro forma information as if the acquisition had occured on January 1, 2019 after giving effect to certain adjustments.
−Removed: The unaudited pro forma information for the three and six months ended June 30, 2019 includes adjustments for interest income on loans and securities acquired, amortization of intangibles arising from the transaction, interest expense on deposits and borrowings acquired, and the related income tax effects.
−Removed: The unaudited pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed date.
−Removed: Unaudited Three Months Ended 6/30/2020
−Removed: Unaudited Pro Forma Three Months Ended 6/30/2019
−Removed: Net Interest Income
−Removed: Non-interest Income
−Removed: Total Revenue
−Removed: Provision for Loan Losses Expense
−Removed: Non-interest Expense
−Removed: Income Before Income Taxes
−Removed: Income Tax Expense
−Removed: Earnings Per Share and Diluted Earnings Per Share
−Removed: The above unaudited financial information includes approximately $ 1,226 of net income and $ 3,959 of total revenue related to the operations of Citizens First during the three months ended June 30, 2020.
−Removed: Unaudited Six Months Ended 6/30/2020
−Removed: Unaudited Pro Forma Six Months Ended 6/30/2019
−Removed: Net Interest Income
−Removed: Non-interest Income
−Removed: Total Revenue
−Removed: Provision for Loan Losses Expense
−Removed: Non-interest Expense
−Removed: Income Before Income Taxes
−Removed: Income Tax Expense
−Removed: Earnings Per Share and Diluted Earnings Per Share
−Removed: The above unaudited financial information includes approximately $ 2,530 of net income and $ 7,938 of total revenue related to the operations of Citizens First during the six months ended June 30, 2020.
+Added: Total $ 3,265 $ 8,675
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.