Jasper-based German American Bancorp, which posted record full-year earnings each of the past four years, says it has enjoyed similar results in the first half of this year.
German American reported its second-quarter and year-to-date financial report Tuesday morning. That same day, bank executives were among the speakers at the Keefe Bruyette & Woods Community Bank Investor Conference in New York City.
During the second quarter, German American posted earnings of $6.7 million (51 cents per share), down 2 percent on a per-share basis from the $6.5 million (52 cents per share) it earned during the same period in 2013.
For the year to date, the bank has earned $13 million (98 cents per share), a new half-year earnings record. During the first half of 2013 the company earned $12.3 million (97 cents per share).
Loan growth was strong during the second quarter, the company said.
As of June 30 German American had $1.4 billion in outstanding loans, an increase of 14 percent as compared to a year earlier. That growth, the company said, came from all types of loans and throughout its market area.
"It's a competitive market but the demand is certainly picking up," Chief Executive Officer Mark Schroeder said during German American's conference presentation, which was available live over the internet.
"Today our (loan) pipelines are as strong as they've ever been."
Banks seek to increase their loan portfolio because they make money from the interest rates they charge on those loans.
During the second quarter, German American's net interest income totaled $18.3 million, up 10 percent from a year earlier.
Non-interest income totaled $5.5 million for the quarter, down 10 percent from a year earlier. In part, the company said, this was because it earned less from the sales of loans and securities in the second quarter than it did a year earlier.
Non-interest expenses — things like salaries and benefits, occupancy, furniture and equipment; data processing fees and other expenditures — rose last quarter.
Non-interest expenses in the second quarter totaled $14.1 million, up 7 percent from a year earlier. The company attributed this to several factors: a increase in the number of employees; expenses related to its acquisition of Bloomington-based United Commerce Bancorp last fall; new digital banking infrastructure added in the first quarter this year; and the opening of a banking location in Columbus.
German American operates 37 banking offices in 13 Southern Indiana counties. It has the number-three market share in the Evansville market.
Shares of the bank closed at $26.04 Tuesday on the Nasdaq market, up 24 cents.