Business
German American Bancorp, Inc. (GABC) Reports Solid Second Quarter 2023 Earnings
JASPER, Ind., July 31, 2023 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (Nasdaq: GABC) reported solid second quarter earnings of $22.1 million, or $0.75
About this update from German American Bancorp, Inc.
[{"type":"text","content":"JASPER, Ind., July 31, 2023 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (Nasdaq: GABC) reported solid second quarter earnings of $22.1 million, or $0.75 per share. This level of quarterly earnings reflected a linked quarter increase of $1.3 million, or approximately 6% on a per share basis, from 2023 first quarter earnings of $20.8 million or $0.71 per share. The Company remained well positioned at the end of the second quarter 2023 with continued solid liquidity and strong capital. Second quarter 2023 operating performance was highlighted by marginal net interest margin compression, solid loan growth, a stable/diversified deposit base, continued strong credit metrics, reductions in non-interest expense and growth in most non-interest income categories. The net interest margin declined marginally from 3.69% to 3.63%, or 6 basis points, during the second quarter of 2023 as compared to the first quarter of 2023, as the earning asset yield increase of 21 basis points mostly kept pace with the funding cost increase of 27 basis points. The continued rise in the cost of funds in the second quarter of 2023 was driven by the continued historic pace of Federal Reserve interest rate increases, competitive deposit pricing in the marketplace, and a change in the Company’s deposit composition as customers looked for higher yield opportunities. Second quarter 2023 deposits increased approximately $24.8 million, or 2% on an annualized basis, compared to the first quarter of 2023. Non interest bearing accounts remained stable at a healthy 30% of total deposits. The core deposit base remains diverse with stable and manageable exposure to uninsured and uncollateralized deposits of approximately 21%. During the second quarter of 2023, total loans increased $57.6 million, or 6% on an annualized basis, with all categories of loans showing growth. The Company’s loan portfolio composition remained diverse with minimal risk exposure to the commercial office sector. Credit metrics remained strong as non-performing assets were 0.21% of period end assets and non-performing loans totaled 0.32% of period end loans. Non-Interest income for the second quarter 2023 was relatively flat when compared to the linked first quarter 2023, as cyclical insurance contingency revenue of nearly $1 million was recognized in the first quarter. Most other non-interest ...