GAB reports increase in quarterly earningsApril 30, 2013
From local sources
JASPER — German American Bancorp Inc. (Nasdaq: GABC) today reported increased quarterly earnings and continued balance sheet growth during the first quarter of 2013, as compared to the same quarter last year. German American’s first-quarter 2013 net income of $5.8 million, or 46 cents per share, represented an increase of approximately 5 percent, on a per-share basis, above the net income of $5.6 million, or 44 cents per share, reported in the first quarter of 2012.
As compared to the same quarter prior-year results, this quarter’s earnings were positively affected by a $1.1 million increase in total noninterest income, driven primarily by an approximately $400,000 increase in insurance revenue and a $200,000 increase in trust fees, as well as a nearly $600,000 elevated level of net gains on the sales of securities in the current year, according to a company news release.
Further enhancing the level of the company’s first-quarter 2013 earnings was a $340,000 reduction in the amount of provision for loan loss from that booked during the prior year’s first quarter. This reduction in the level of loan loss provision was related to a continued improvement during the first quarter of this year of an already strong level of asset quality within the company’s loan portfolio.
German American also reported higher levels of loans and deposits as compared to the first quarter of last year. March 31, 2013, loans outstanding increased by $100 million, or 9 percent, while total deposits increased by approximately $55 million, or 3 percent, compared to March 31, 2012, total loans and deposits. This increase in both loans and deposits during the past year is reflective of the company’s continued growing of its base of both lending clients and deposit customers.
The company’s net interest income declined by approximately $400,000 while total noninterest expenses increased by approximately $875,000 during the current year first quarter from the levels recorded during the first quarter of last year. The decline in net interest income during the first quarter of 2013 compared with the first quarter of 2012 was largely attributable to a decline in the accretion of loan discounts on acquired loans. The increase in total noninterest expenses in the current year first quarter relative to that of the same quarter last year resulted from increases of approximately $475,000 in salaries and benefits and $250,000 in data processing expenses.
Mark A. Schroeder, chairman and CEO, attributed “another quarter of impressive operating performance” to “the combination of solid organic deposit growth, a continuation of our historically strong level of asset quality within our loan portfolio and significant revenue growth within the insurance and trust components of our business.”
The company also announced that its board of directors declared its regular quarterly cash dividend of 15 cents per share, which will be payable May 20 to shareholders of record May 10.
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