German American Bancorp Reports Record Quarterly Earnings

Business Wire, April 25, 2006

GERMAN AMERICAN BANCORP
       (unaudited, dollars in thousands except per share data)

                     Consolidated Balance Sheets
---------------------------------------------------------------------

                                                     March 31,
                                                 2006        2005
                                              ----------- -----------

ASSETS
  Cash and Due from Banks                        $29,067     $18,951
  Short-term Investments                          26,662       5,533
  Investment Securities                          202,580     200,375

  Loans Held-for-Sale                              2,186       3,517

  Loans, Net of Unearned Income                  683,330     619,497
  Allowance for Loan Losses                       (9,721)     (8,968)
                                              ----------- -----------
     Net Loans                                   673,609     610,529

  Stock in FHLB and Other Restricted Stock        14,483      13,686
  Premises and Equipment                          22,422      19,708
  Goodwill and Other Intangible Assets            13,014       4,067
  Other Assets                                    41,093      36,106
                                              ----------- -----------
  TOTAL ASSETS                                $1,025,116    $912,472
                                              =========== ===========

LIABILITIES
  Non-interest-bearing Demand Deposits          $137,603    $122,873
  Interest-bearing Demand, Savings, and
      Money Market Accounts                      315,811     294,282
  Time Deposits                                  354,160     304,286
                                              ----------- -----------
     Total Deposits                              807,574     721,441

  Borrowings                                     117,468      96,630
  Other Liabilities                               12,207      11,287
                                              ----------- -----------
 TOTAL LIABILITIES                               937,249     829,358
                                              ----------- -----------

SHAREHOLDERS' EQUITY
  Common Stock and Surplus                        79,065      77,347
  Retained Earnings                               10,415       6,664
  Accumulated Other Comprehensive Loss            (1,613)       (897)
                                              ----------- -----------
TOTAL SHAREHOLDERS' EQUITY                        87,867      83,114
                                              ----------- -----------

TOTAL LIABILITIES AND
 SHAREHOLDERS' EQUITY                         $1,025,116    $912,472
                                              =========== ===========

END OF PERIOD SHARES OUTSTANDING              11,006,904  10,880,948

BOOK VALUE PER SHARE                               $7.98       $7.64


                  Consolidated Statements of Income
----------------------------------------------------------------------

                                                 Three Months Ended
                                                      March 31,
                                                  2006        2005
                                               ----------- -----------

INTEREST INCOME
  Interest and Fees on Loans                      $12,382      $9,914
  Interest on Short-term Investments                  126          87
  Interest and Dividends on Investment
   Securities                                       2,240       2,003
                                               ----------- -----------
 TOTAL INTEREST INCOME                             14,748      12,004
                                               ----------- -----------

INTEREST EXPENSE
  Interest on Deposits                              4,482       2,889
  Interest on Borrowings                            1,390       1,116
                                               ----------- -----------
 TOTAL INTEREST EXPENSE                             5,872       4,005
                                               ----------- -----------

  Net Interest Income                               8,876       7,999
  Provision for Loan Losses                           290         482
  Net Interest Income after                    ----------- -----------
    Provision for Loan Losses                       8,586       7,517
                                               ----------- -----------

NON-INTEREST INCOME
  Net Gain on Sales of Loans and Related Assets       213         236
  Net Gain/(Loss) on Securities                         -           -
  Other Non-interest Income                         3,481       3,405
                                               ----------- -----------
 TOTAL NON-INTEREST INCOME                          3,694       3,641
                                               ----------- -----------

NON-INTEREST EXPENSE
  Salaries and Benefits                             5,184       4,596
  Other Non-interest Expenses                       3,519       3,342
                                               ----------- -----------
 TOTAL NON-INTEREST EXPENSE                         8,703       7,938
                                               ----------- -----------

  Income before Income Taxes                        3,577       3,220
  Income Tax Expense                                1,014         809
                                               ----------- -----------

NET INCOME                                         $2,563      $2,411
                                               =========== ===========

EARNINGS PER SHARE & DILUTED EARNINGS PER SHARE     $0.23       $0.22


WEIGHTED AVERAGE SHARES OUTSTANDING            10,993,232  10,894,953
DILUTED WEIGHTED AVERAGE SHARES OUTSTANDING    10,996,598  10,911,363


EARNINGS PERFORMANCE RATIOS
 Annualized Return on Average Assets                 1.02%       1.04%
 Annualized Return on Average Equity                11.69%      11.39%
 Net Interest Margin                                 4.03%       3.93%
 Efficiency Ratio (1)                               67.70%      66.40%
 Net Overhead Expense to Average Earning Assets
  (2)                                                2.18%       2.01%

ASSET QUALITY RATIOS
 Annualized Net Charge-offs to Average Loans         0.18%       0.20%
 Allowance for Loan Losses to Period End Loans       1.42%       1.45%
 Non-performing Assets to Period End Assets          1.56%       0.64%
 Non-performing Loans to Period End Loans            2.17%       0.89%

(1) Efficiency Ratio is defined as Non-interest Expense divided by the
    sum of Net Interest Income, on a tax equivalent basis, and
    Non-interest Income.
(2) Net Overhead Expense is defined as Total Non-interest Income less
    Total Non-interest Expense.