2017 another record year of earnings for German American

German American Bancorp, Inc. reported that the company has achieved record annual earnings for the year ended on December 31, 2017, marking the 8th consecutive year of record performance.

This level of annual earnings performance resulted in a 11.6 percent return on shareholders’ equity for 2017, noting the 13th consecutive fiscal year in which the GAB has delivered double-digit returns on shareholders’ equity.

GAB also announced a 15 percent increase in its quarterly cash dividend. The company’s 2017 net income of $40.7 million, or $1.77 per share, was an increase of approximately $5.5 million, or 13 percent on a per share basis, over its previous record annual net income of $35.2 million, or $1.57 per share, reported in 2016.

Current year fourth-quarter earnings of $11.6 million, or $0.51 per share, represented an increase of approximately 16 percent on a per share basis relative to 2016 fourth quarter results of $10.1 million, or $0.44 per share.

The 2017 reported fourth quarter and year-to-date net income were positively impacted by a $2.3 million net tax benefit resulting from the revaluation of the company’s deferred tax assets and liabilities related to the federal tax reform legislation enacted during the fourth quarter of 2017.

In addition to the federal income tax benefit noted above, the record financial performance achieved in 2017 was largely attributable to a $5.0 million increased level of net interest income driven primarily by a higher level of average loans outstanding. 2017 year-end loans outstanding increased by approximately $151.6 million, or 8 percent, from the prior year-end level.

The year-over-year increase in loans outstanding was attributable to strong organic loan growth broadly based across the Company’s entire market area and within all loan categories. Commenting on the Company’s eighth consecutive year of record financial performance in 2017.

“We were very pleased to be able to continue our pattern of record financial performance in the past year and were extremely encouraged to see a further strengthening of economic growth throughout our market area in 2017,” said Mark A. Schroeder, German American’s Chairman & CEO. “As evidenced by the double-digit annualized loan growth we experienced in the last half of the year, both business and consumer clients throughout our market area are feeling more confident in the growth potential and vibrancy of the economy. Based on the exceptionally strong growth in both loans and deposits we experienced in 2017, a strong and growing pipeline at year-end of potential future loan growth, and an expectation of accelerated overall economic growth resulting from the recent federal tax reform legislation, we have a positive outlook regarding our ability to continue this record of exceptional financial performance in 2018 and beyond.”