Jasper-based German American Bancorp Inc. (Nasdaq: GABC) is reporting second quarter net income of $23.8 million, compared to $14.2 million during the same period a year ago. The banking company says the growth was driven by strong balance sheet growth, improved net interest income, and a reduced provision for credit losses.
“We were very pleased with our ability to build upon the momentum of our solid first quarter earnings with exceptionally strong performance in the second quarter,” said Mark Schroeder, German American chairman and chief executive officer. “We were particularly encouraged by the level of core, organic loan growth, exclusive of the impact of PPP loan activity, and the improvement we’ve seen in general economic conditions throughout our footprint during the current quarter.”
German American says it has participated in two rounds of the federal Paycheck Protection Program for loans provided through the Small Business Administration. In the first round, the bank originated loans totaling $351 million to 3,070 applicants. The second round began in January. It originated approximately $157 million in principal amount, representing 2,601 loans.
“While new developments related to the pandemic continue to cause uncertainty for both our business and retail customers, we are hopeful that improvements in commercial and social activities will remain steady and look forward with optimism to continued economic growth in the coming months,” said Schroeder.
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