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JASPER, Ind., Oct. 26, 2010 (GLOBE NEWSWIRE) -- German American Bancorp, Inc. (Nasdaq:GABC) reported today that its 3
rd quarter earnings achieved yet another record, coming on the heels of the previously reported record earnings in the 2
nd quarter of this year. The Company's 2010 year-to-date earnings through September 30
th also represented a record level of performance.
The Company's third quarter net income of $3,594,000, or $0.32 per share, was an increase of approximately 13%, from the $3,191,000, or $0.29 per share, recorded during the same quarter last year. Third quarter earnings were also approximately 5% greater than the previous record quarterly earnings of $3,408,000, or $0.31 per share, reported in the second quarter of this year.
On year-to-date basis, 2010 earnings increased to a record $10,253,000, or $0.92 per share, as compared to $8,897,000, or $0.81 per share for the first nine months of 2009. The improvement in year-to-date earnings represented an increase of approximately 15% over the level of performance reported in 2009.
The record quarterly earnings performance was primarily reflective of an improvement in the level of the Company's core operating results, derived from increased revenues in both net interest income and non-interest income. As compared to the same quarter in 2009, current quarter net income was enhanced by an increase in the Company's net interest income of approximately $1.0 million. This improvement in net interest income was directly attributable to over $100 million, or 9%, growth in the Company's average earning assets, as compared to the third quarter of the prior year. Approximately one-half of the growth in average earning assets were generated from the Company's existing banking markets with the remainder of the growth related to the branch purchase of the two Evansville banking offices in May of this year.
The Company's non-interest income increased by approximately $375 thousand, or 9%, the majority of which is attributable to an increased level of fee income from the origination of residential mortgage loans and the sale of those loans into the secondary mortgage market. This increased revenue is related to increased mortgage refinancing activity in connection with the current level of attractive fixed rates available on residential mortgage loans.