German American reports record earnings for first 3 quarters

JASPER — German American Bancorp Inc. reported $9.7 million, or 42 cents per share, in earnings during the third quarter of 2017. That is a decline of 7 percent from year-earlier quarterly revenues of $10.2 million, or 42 cents per share, the company said.

Year-to-date, however, German American reported record year-to-date income of $29.1 million, or $1.27 per share, a 12.4 percent increase. That’s compared to $25.1 million, or $1.13 per share, in net income for the first nine months of 2016.

Year-to-date third quarter 2017 earnings performance, relative to the same period in 2016, was enhanced by an increase of $4.4 million, or about 6.3 percent, or net interest income, driven in part by the loan growth, company officials said.

The company also experienced strong loan growth of $54.6 million, or 10.7 percent on a linked quarter annualized basis, between the second and third quarters.

“While there were several revenue and expense items recorded in the third quarter related to the disposition of two former branch facilities closed in the current year, that made quarterly earnings comparisons difficult,” said Mark A Schroeder, German American’s CEO and chairman. “We are very encouraged about the level of our current year-to-date earnings and future earnings potential.”

Total assets for the company increased to $3.073 billion as of Sept. 30, representing an increase of $68.1 million or 9 percent on an annualized basis, compared with June 30, 2017, and an increase of $93.3 million, or 3 percent, compared to Sept. 30, 2016.

“The strong level of both loan and deposit growth we’ve experienced during the past two quarters is reflective of the economic growth and vitality throughout our southern Indiana market area, which we believe bodes well for the company’s future profitability,” Schroeder said.

The company also announced the declaration of a regular quarterly cash dividend of 13 cents per share, will be will payable Nov. 20 to shareholders of record as of Nov. 10.

German American Bancorp operates 52 banking offices in 19 contiguous southern Indiana counties, including in Columbus, and one in northern Kentucky county.