Staff Reports
German American Bancorp, based in Jasper, reported record quarterly earnings of $15.3 million, or 61 cents per share, for the quarter ending June 30.
The level of quarterly earnings performance was an increase of 27%, on a per share basis, compared with the second quarter of 2018, which had a net income of $11.1 million or 48 cents per share.
The quarterly comparisons include the company’s 2018 acquisition of five branches in the Columbus market area and the company’s acquisition of First Security Inc. of Owensboro, Kentucky on Oct. 15.
The company had also previously announced the acquisition of Citizens First Corp. of Bowling Green, Kentucky as of July 1.
The company attributed its second quarter earnings to an increased level of net interest income, improved levels of non-interest income within a majority of the categories of fee income and additional net gains on the sale of loans and securities.
Compared to the first quarter of 2019, company officials said the company benefited from a reduction in the level of provision for loan loss resulting from an improved level of asset quality.
Also, operating expenses were lower in the current quarter due to reduced levels of salaries and benefits expense and professional fees during the current quarter.
The company also recorded strong deposit growth in the second quarter, as end of period total deposits grew by about $63.7 million, or 8% on a linked-quarter annualized basis.
Total non-maturity transaction deposits grew by about $100.2 million, or 16% on a linked-quarter annualized basis.
The company experienced a strong level of loan originations during the current quarter, which of materially offset by a continued elevated level of loan payoffs, resulting in a modest increase of $8.3 million, or 1% on a linked quarter annualized basis, in end of period total loans.
Mark A. Schroeder, German American’s chairman and CEO, said the company was pleased with the strong start during the first half of 2019.
“Even though the current economic recovery is at a historic length, the economic strength and vitality in each of the markets we serve continues to be impressive,” Schroeder said.
German American, through its banking subsidiary German American Bank, operates 75 banking offices in 20 contiguous southern Indiana counties, including locations in Bartholomew County. The company also has locations in six Kentucky counties and one county in Tennessee.
