JASPER – German American Bancorp Inc. reported strong operating performance for the third quarter that ended Sept. 30, 2022, with earnings of $24.6 million, resulting in the Company’s second-highest level of historical earnings per share at $0.83 per share. This level of quarterly earnings represented an increase of $0.9 million, or approximately 2.5% on a per share basis, from its 2022 second-quarter earnings of $23.7 million, or $0.81 per share.
On a year-over-year basis, the current quarterly earnings represented an increase of $3.1 million from its 2021 third-quarter earnings of $21.5 million.
The third-quarter 2022 earnings performance was driven by several factors including continued net interest margin expansion as well as solid credit metrics and ongoing disciplined operating expense management. The third quarter of 2021 earnings included a reserve release of $2.0 million and $4.1 million of Paycheck Protection Program (“PPP”) fees.
As of Sept. 30, 2022, the Company’s balance sheet contracted somewhat as a result of a decline in deposits and a decline in the market value of available-for-sale securities. The Company continues to focus on its strong deposit mix and the retention of relational deposit accounts. Total loans increased $33.6 million, or 4% annualized, as solid loan originations for the quarter were partially offset by certain large pay offs late in the quarter as a result of business sales.
All loan categories including commercial, agriculture, and retail experienced some level of growth during the third quarter of 2022.
The Company also announced its Board of Directors has declared a regular quarterly cash dividend of $0.23 per share, which will be payable on Nov. 20 to shareholders of record.
