Jasper-based German American Bancorp (Nasdaq: GABC) is reporting record first quarter net income of $15 million, up from $11.8 million during the same period last year. Chief Executive Officer Mark Schroeder attributes the strong performance to loan pipelines and its pending acquisition of Citizens First Corp.
The parent of German American Bank says the quarterly performance is largely due to increased average earning assets and an improved tax-equivalent net interest margin. The increased level of average earning assets during the first quarter of 2019, compared to the fourth quarter of 2018, was largely attributable to the effect of the acquisition of First Security in October 2018.
Schroeder says the company is encouraged about its prospects for continued growth with the company’s five-branch acquisition in the greater Columbus, Indiana market area.
“While balance sheet growth was limited during the quarter due to seasonal factors, we remain very encouraged about our ability to experience strong growth throughout the balance of this year. Our loan pipelines continue to be exceptionally strong, as evidenced by the 9% growth, on an annualized basis, that we saw within our Commercial & Industrial Loans during the first quarter," he said, "We also were very pleased with the approximately 5% annualized growth in end of period balances in Non-interest-bearing Demand Deposits. Even though the current economic recovery is approaching historic length, we’re continuing to see indications that economic growth will remain strong throughout 2019."
You can connect to the full first quarter earnings report by clicking here.