JASPER — German American Bancorp, Inc. reported earnings of $23.7 million in the second quarter, resulting in the company’s second highest level of reported earnings per share at $0.81 per share.
This level of quarterly earnings represented an increase of $14.7 million, or approximately 161% on a per share basis, from 2022 first quarter earnings of $9.1 million, or $0.31 per share. The first quarter of 2022 was impacted by one-time related merger and acquisition costs as a result of the Jan. 1, merger with Citizens Union Bancorp of Shelbyville, Inc. (“CUB”).
On a year-over-year basis, the current quarterly earnings, as compared to the second quarter 2021 of $23.8 million, or $0.90 per share, were comparable in dollars but decreased 10% on a per share basis as a result of the company’s Jan. 1, issuance of approximately 2.9 million shares of common stock as part of the merger consideration in the CUB transaction.
The second quarter 2021 earnings were positively impacted by a reserve for credit loss release of $5 million and approximately $2.8 million of Paycheck Protection Program (“PPP”) fees equating to approximately $0.22 per share on an after-tax basis.
The second quarter 2022 earnings performance was driven by a number of factors including improved net interest margin and continued strong credit metrics, as well as increased interchange fee income and deposit service charges, and improved efficiencies in non-interest expenses resulting from the CUB merger.
Net interest income during the second quarter of 2022 increased $2.7 million from the first quarter of 2022 and $9.7 million compared to the same quarter 2021. The increase in net interest income in the second quarter of 2022 was primarily attributable to an improved net interest margin. On a year-over-year basis, total assets increased $1.12 billion, compared to June 30, 2021. This increase was mostly attributable to the acquisition of CUB as well as strong organic deposit and solid loan growth from throughout our entire market footprint partially offset by a decrease in PPP loans.
D. Neil Dauby, German American’s president and CEO, stated, “We were very pleased with our ability to build upon our momentum from our first quarter acquisition with a strong operating performance in the second quarter. We are encouraged by our improving net interest margins as we anticipate continuing to realize the benefits from a rising rate environment as well as the strength of our lending pipelines throughout most of our existing and newly acquired geographic footprint. Although continued fears of inflation and recession may potentially slow future loan growth, we will be prepared to face the headwinds from future economic uncertainties.”
The company also announced its board has declared a regular quarterly cash dividend of $0.23 per share, which will be payable on Aug. 20 to shareholders of record as of Aug. 10.
German American Bancorp, Inc. is a Nasdaq-traded (symbol: GABC) financial holding company based in Jasper. German American, through its banking subsidiary German American Bank, operates 77 banking offices in 19 contiguous southern Indiana counties, including locations in Columbus, and 14 counties in Kentucky.
