Mr. Schroeder: German American Bancorp, founded as German American Bank 100 years ago, on November 2, 1910, is based in Jasper, Ind., which is in Southern Indiana near Louisville, Ky. Since that time, we have grown from a traditional community bank into what we are today, which probably could best be described as a super community bank and small, regional financial services provider.
Our market footprint today covers a geographic distance of approximately 60 miles to 75 miles from our center in Jasper, reaching north to Bloomington, Ind., which is the home of Indiana University, and south to Evansville, Ind., Indiana's third-largest city.
TWST: You were recently summoned to the White House to participate in an employment and small-business lending discussion with President Obama. Give us a review of what your region looks like and how it's performed over the past year.
Mr. Schroeder: German American and our region have certainly had a somewhat unique story in the current financial environment and economic downturn. Unique in that German American, in 2008 and 2009, enjoyed the best two years in our company's history, in terms of overall financial performance. Our story is also unique in terms of the economic environment within our market area. When you think of a Midwest economy, there is a perception of economic weakness. Yet the economic base within our footprint has some of the lowest unemployment rates in the state of Indiana and in the Midwest.
While our market has been affected by the economic downturn, it has been much less affected than the vast majority of the Midwest. As one views the economic base within our footprint, it would best be described as having a very diversified economy, anchored around a regional technology and education component, combined with a significant health care and manufacturing segment as well as a strong agricultural influence. Our market is unusual from a Midwest economic perspective, as there is a minimal big-three auto influence and therefore a minimal organized labor influence. There is a Japanese auto presence with a Toyota manufacturing facility located on the western edge of our market area.
In terms of major employers within the market, two of the largest employers are the Crane Naval Surface Warfare Center and Indiana University. I know that your readers are likely thinking, "A naval surface warfare center in the middle of Southern Indiana?" Yes, located in Southern Indiana, thousands of miles from the nearest ocean, Crane has been responsible for the development of much of our military's high-tech weaponry. As one would expect from their mission, Crane employs a large number of high-paying engineering positions in connection with their research and development objectives. Obviously, as one of the leading institutions of higher education within the United States, Indiana University represents a significant employer in the Bloomington, Ind., market.
Within the health care segment, our market also supports four regional hospitals as well as Cook Medical, a major Bloomington, Ind.-based employer. Cook Medical has developed a number of advances of medical processes and procedures, including embedded heart stents. In addition to this nucleus of major employers, other significant employment is derived from a diversified manufacturing component, much of which is related to wood office furniture, and as I previously stated, from a very significant agricultural influence. This diversified employer base tends to lend itself very well to our market's ability to weather the peaks and the valleys of economic cycles. I won't say our market has been recession-proof, but it certainly has had a very good track record in that regard.
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