Sourced from Dubois County Free Press
German American Bancorp, Inc. reported record 2016 second quarter earnings of $9.8 million, or $0.64 per share.
The company’s earnings were enhanced by the inclusion of the operations of River Valley Bancorp and its banking subsidiary River Valley Financial Bank for the full quarter following the acquisition of River Valley on March 1, 2016.
The current quarter record performance represented a 16.4 percent increase per share from the $7.3 million, or $0.55 per share, reported in the second quarter of 2015.
German American’s record second quarter earnings were also driven by a number of positive factors within the company’s core operations including the continuation of the recent trend of exceptional organic growth within the company’s loan portfolio.
Total end-of-period loans from the company’s existing banking offices, exclusive of the acquired River Valley loan portfolio, grew approximately $57 million, or 14 percent on a linked quarter annualized basis during the second quarter. Total reported end-of-period loans, inclusive of River Valley, grew by $46 million, or 10 percent on a linked-quarter annualized basis.
This combination of exceptionally strong organic loan growth and the inclusion of the River Valley loan portfolio resulted in an improvement of German American’s net interest margin to 3.86 percent during the second quarter.
“We are extremely pleased with this quarter’s results, which were positively impacted by both the anticipated earnings enhancements from the merger transaction with River Valley and by exceptionally strong loan growth throughout our footprint and within all loan categories,” said Mark A. Schroeder, chairman and CEO of German American. “As always, we are honored and humbled that clients throughout our footprint are, in increasing numbers, reaching out to our team of dedicated, financial professionals for advice and counsel in the achievement of the financial success of their businesses, communities, and families. This quarter’s record performance is a by-product of the strong endorsement of our clients.”
German American also announced that its board of directors declared its regular quarterly cash dividend of $0.18 per share, which will be payable on August 20, 2016 to shareholders of record as of August 10, 2016.