German American Bancorp, Inc (GABC) has reported 85.70 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $9.56 million, or $0.42 a share in the quarter, compared with $5.15 million, or $0.25 a share for the same period last year. Revenue during the quarter grew 19.38 percent to $32.41 million from $27.15 million in the previous year period. Net interest income for the quarter rose 18.96 percent over the prior year period to $24.72 million. Non-interest income for the quarter rose 13.45 percent over the last year period to $8.19 million.
German American Bancorp has made provision of $0.50 million for loan losses during the quarter, down 41.18 percent from $0.85 million in the same period last year.
Net interest margin improved 23 basis points to 3.86 percent in the quarter from 3.63 percent in the last year period. Efficiency ratio for the quarter improved to 55.69 percent from 69.75 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
Commenting on the Company’s continued strong financial performance, Mark A. Schroeder, German American’s Chairman & Chief executive officer, stated, "We’re pleased that our strong financial performance continued during the first quarter of 2017. One of the positive factors during the first quarter was the expansion of our net interest margin. Having operated in a historically low level of general market interest rates during most of the past decade, it is very encouraging to see this indication that recent upward movements in market interest rates had a positive impact on our margins. While loans outstanding reflected a modest decline in the quarter, this was largely related to normal seasonality within our portfolio of agricultural loans. We are also encouraged relative to the indications of potential future loan demand, as we’re seeing greater optimism from our small business clients and prospective clients. We believe our strong first quarter results places us in a position to continue to deliver upon our commitment of customer service excellence to our many consumer and business clients throughout our Southern Indiana market area."
Assets outpace liabilities growth
Total assets stood at $2,933.14 million as on Mar. 31, 2017, up 2.32 percent compared with $2,866.73 million on Mar. 31, 2016. On the other hand, total liabilities stood at $2,591.93 million as on Mar. 31, 2017, up 1.84 percent from $2,545.09 million on Mar. 31, 2016.
Loans outpace deposit growth
Net loans stood at $1,968.41 million as on Mar. 31, 2017, up 3.61 percent compared with $1,899.79 million on Mar. 31, 2016. Deposits stood at $2,326.47 million as on Mar. 31, 2017, up 3.83 percent compared with $2,240.61 million on Mar. 31, 2016.
Investments stood at $733.64 million as on Mar. 31, 2017, up 0.51 percent or $3.72 million from year-ago. Shareholders equity stood at $341.22 million as on Mar. 31, 2017, up 6.09 percent or $19.58 million from year-ago.
Return on average assets moved up 50 basis points to 1.31 percent in the quarter from 0.81 percent in the last year period. At the same time, return on average equity increased 400 basis points to 11.39 percent in the quarter from 7.39 percent in the last year period.
Nonperforming assets moved down 16.92 percent or $1.20 million to $5.90 million on Mar. 31, 2017 from $7.10 million on Mar. 31, 2016. Meanwhile, nonperforming assets to total assets was 0.20 percent in the quarter, down from 0.25 percent in the last year period.
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