The Jasper-based bank’s second quarter net income totaled $3.4 million (31 cents per share) in the second quarter, up 23 percent from $2.8 million (25 cents per share) during the same period a year ago.

The improved earnings were due in part to German American’s purchase of two branch offices in May, the company said. Those new branches, formerly Farmers State Bank locations, are in Evansville and Newburgh.

“We will strive to build upon this record performance level as we continue to grow our new market presence in Evansville, while also continuing to enhance our existing market position in other Southern Indiana markets,” the bank’s Chairman and Chief Executive Officer, Mark Schroeder, said in a statement.

Net interest income — the difference between what a bank pays in interest and what it earns in interest — totaled $11.9 million, up 7 percent from the same period a year ago. The bank said the increase was mostly because of growth in core deposits, both internally and because of the Evansville-area branch acquisitions.

Total noninterest expenses last quarter stood at $9.9 million, down 3 percent from the same time last year.

The provision for loan losses totaled $1 million, the same as a year ago. A provision for loan losses — money a bank sets aside to cover potential losses from bad loans — counts as an expense.

German American’s board of directors has declared a quarterly dividend of 14 cents per share, payable Aug. 20 to shareholders of record as of Aug. 10.

Shares of German American closed at $16.75 on the Nasdaq market, up 86 cents.