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Last updated on Thursday, March 30, 2017
(BEDFORD) - German American Bancorp, Inc. announced that its board of directors has declared a 3-for-2 stock split on the company’s authorized and outstanding common shares.
The stock split will be distributed on April 21, 2017 to shareholders of record as of April 6, 2017.
Shareholders will receive cash in lieu of fractional shares that they would have otherwise been entitled to receive in connection with the stock split, except that those shareholders participating in the company's dividend and stock purchase plans will have fractional shares credited to their accounts. The price paid for fractional shares will be based on the average per share closing prices of German American's common stock over the five trading days immediately preceding the record date of the split.
In connection with the 3-for-2 stock split, the board of directors has approved an amendment to the company's articles of incorporation to increase the amount of both the issued and authorized common and preferred shares in the same proportion, increasing the number of authorized common shares to 45.0 million.
The stock split will increase German American's outstanding common shares from approximately 15.3 million shares prior to the split to approximately 22.9 million shares post-split. The company's quarterly cash dividend per share will be adjusted going forward for the 3-for-2 stock split.
Commenting on the announcement, Mark A. Schroeder, German American's Chairman & CEO, stated, "This action is reflective of our exceptionally strong financial performance in 2016 and over the course of the past decade. German American has a track record of consistent profitable growth and increasing long-term shareholder value, as evidenced by seven consecutive years of record earnings and 12 years of double-digit returns on shareholders' equity. This split is intended to further enhance the liquidity of our stock and to place the market price of our company's stock in a more attractive range for investors."
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