German American Bancorp Inc. in Jasper, Ind., reported Tuesday third-quarter earnings of $5.2 million, up about 44% from a year ago, due to increased noninterest income and reduced operating expenses.
The $1.9 billion-asset company said that the results were up 6% from the record-setting second quarter. Earnings per share totaled 41 cents, beating consensus analysts' estimates by three cents.
Noninterest income increased by 5% from the second quarter and 3% a year ago, to $4.6 million, due to higher gains from the origination and sale of one-to-four family residential mortgages, as well as increased refinancing activity. The company also reported an increase in trust and investment-product fees.
Noninterest expenses in the third quarter totaled $12 million, down 2% from the second quarter. The second quarter included non-recurring expenses from the company's acquisition of American Community Bancorp Inc. and its banking subsidiary, Bank of Evansville.
The net interest margin for the quarter was 3.83%, down 12 basis points from the second quarter and 17 basis points from a year ago. The lower margin was due to low interest rates and pressure on earning asset yields, the company said.
The provision for loan losses totaled $1.3 million, unchanged from the second quarter but down more than 5% from a year ago.
