 JASPER, Ind., July 27, 2020 GLOBE NEWSWIRE -- German American Bancorp, Inc. Nasdaq: GABC reported quarterly earnings of 14.3 million, or 0.54 per share, for the quarter ending on June 30, 2020. The second quarter 2020 performance compared to first quarter 2020 net income of 12.5 million, or 0.47 per share, and to second quarter 2019 net income of 15.3 million, or 0.61 per share. The operating results comparison was reflective of the inclusion of the acquisition of Citizens First Corporation of Bowling Green, Kentucky on July 1, 2019. End-of-period loans, as of June 30, 2020, were approximately 3.3 billion, which represented an increase of 253 million, or approximately 8, from end-of-period loans as of March 31, 2020 and an increase of 550 million, or approximately 20, from end of period loans as of June 30, 2019. Total deposits at June 30, 2020 of approximately 4.0 billion increased by 501 million, or approximately 14, relative to first quarter 2020 end-of-period total deposits and an increase of 851 million, or approximately 27, as compared to second quarter end-of-period deposits in the prior year. Approximately 50 of the deposit growth during both periods of comparison occurred within the extremely valuable non-interest bearing demand deposit category.The increase in end-of-period loans and deposits as of June 30, 2020, as compared to March 31, 2020, was largely related to both the origination of approximately 350 million in Paycheck Protection Program PPP loans to nearly 3,000 local business clients, supporting the retention of over 40,000 jobs throughout our market area, and the deposit of those funds into business operating accounts. The Company also experienced an overall significant inflow of other customer deposits during the second quarter of 2020 contributing to the extraordinary level of quarter-over-quarter deposit growth. The increase in year-over-year period end loans and deposits was related to these same factors, as well as to the acquisition of Citizens First on July 1, 2019.Commenting on the Companys second quarter performance, Mark A. Schroeder, German Americans Chairman CEO, stated, Were pleased to report another period of solid profitability during the second quarter of 2020, producing 14.3 million, or 0.54 per share, in earnings for the quarter, which was inclusive of a 5.9 million provision for credit losses. This level of profitability is reflected in second quarter-end 2020 tangible book value per share of 17.44, which increased by 11, on an annualized basis, from the prior quarter-end and by 13 from second quarter-end 2019 tangible book value per share.Certainly, the second quarter saw a period of unprecedented organic growth of both loans and deposits for our Company in the face of operating with a number of constraints related to the COVID-19 pandemic. Im extremely proud of our German American team of financial professionals, who, in the face of these challenges, delivered solid quarterly earnings performance and tangible book value per share growth, originated a record level of commercial and residential mortgage loans and generated a record level of deposit growth. Its only due to their extraordinary level of commitment and dedication that we were able accomplish all of this under extremely challenging operating conditions.Schroeder continued, Our financial results for the second quarter of 2020 reflect the effects of the combination of stressed economic conditions and net interest margin pressures alongside the positive impact of record levels of loans and deposits. As we plan for the continuation of a period of economic uncertainty, we also continued to build our loan loss reserve during the second quarter, increasing the allowance for credit losses to 42.4 million in addition to net fair value adjustments on acquired loans of 9.8 million. This represents a strong 1.30 of total loans and 1.45 excluding PPP loans from total loans. In this period of uncertainty, its prudent to maintain our disciplined credit culture, as evidenced by the Companys improved credit metrics, while putting funds aside for the possibility of future credit challenges.The Company also announced its Board of Directors declared a regular quarterly cash dividend of 0.19 per share, which will be payable on August 20, 2020 to shareholders of record as of August 10, 2020.COVID-19 Pandemic Loan InformationThe Company is participating in the Paycheck Protection Program PPP for loans provided through the Small Business Administration SBA, as established under the Coronavirus Aid, Relief and Economic Security Act the CARES Act. Under this program, the Company has lent funds primarily to its existing loan andor deposit customers, based on a pre-determined SBA-developed formula, intended to incentivize small business owners to retain their employees. These loans carry a customer interest rate of 1.00 plus a processing fee that varies depending on the balance of the loan at origination and have a two-year or five-year maturity, depending on when the loan was made. The vast majority of the Companys PPP loans have two-year maturities. As of June 30, 2020, the Company has committed approximately 349.5 million, on 2,998 PPP loan relationships, under this program, with gross processing fees estimated to total approximately 12.6 million 12.0 million net of processing costs.In response to requests from borrowers who have experienced pandemic-related business or personal cash flow interruptions, and in accordance with recently issued regulatory guidance, the Company has made short-term loan modifications involving both interest only and full payment deferrals. As of June 30, 2020 the following payment modifications have been made:Type of LoansNumber of LoansLoan Balance of Loan Type excludes PPP Loans dollars in thousands Commercial Industrial Loans257 54,300 10.8 Commercial Real Estate Loans392 224,664 15.3 Agricultural Loans8 1,175 0.3 Consumer Loans80 1,115 0.4 Residential Mortgage Loans110 23,103 8.2 Total847 304,357 10.4 To date, the Company has not experienced significant customer requests for additional loan modifications, within the commercial and industrial loan and commercial real estate loan portfolios, after the initial short-term modifications granted for those customers during the second quarter of 2020.The Company tracks lending exposure by industry classification to determine potential risk associated with industry concentrations, if any, that could lead to additional credit loss exposure. As a result of the COVID-19 pandemic, the Company has initially identified loan segments that could represent a potentially higher level of credit risk, as many of these customers may have incurred a significant negative impact to their businesses as a result of governmental stay-at-home orders and travel restrictions. At June 30, 2020, the Company had the following exposure to these potentially sensitive COVID-19 identified loan segments:Industry SegmentNumber of Loans Outstanding Balance of Total Loans dollars in thousands Lodging Hotels51 130,112 4.0 Student Housing107 94,226 2.9 Retail Shopping Strip Centers61 93,172 2.9 Restaurants190 50,724 1.6 Balance Sheet HighlightsTotal assets for the Company totaled 4.851 billion at June 30, 2020, representing an increase of 527.2 million, or 49 on an annualized basis, compared with March 31, 2020 and an increase of 880.3 million, or 22, compared with June 30, 2019. The increase in total assets during the second quarter of 2020 compared with March 31, 2020 has been impacted by the Companys participation in the PPP and by significant growth of deposits during the second quarter of 2020. During the second quarter of 2020 compared with March 31, 2020, federal funds sold and other short-term investments increased by 183.4 million and the Companys securities available for sale portfolio increased by 86.5 million. These increases were largely driven by the increased level of deposits during the second quarter of 2020. In addition, loans increased 252.5 million as of the end of the second quarter of 2020 compared with March 31, 2020 impacted primarily by the Companys participation in the PPP.The increase in total assets as of June 30, 2020 compared to a year ago was was also driven by the acquisition of Citizens First Corporation Citizens First. On July 1, 2019, the Company completed its acquisition of Citizens First and its subsidiary bank, Citizen First Bank, Inc. Citizens First, headquartered in Bowling Green, Kentucky, operated eight retail banking offices through Citizens First Bank, Inc. in Barren, Hart, Simpson and Warren Counties in Kentucky.June 30, 2020 total loans increased 252.5 million, or 33 on an annualized basis, compared with March 31, 2020 and increased 550.3 million, or 20, compared with June 30, 2019. The increase in loans during the second quarter of 2020 compared with the first quarter of 2020 was primarily the result in the Companys participation in the PPP. Excluding the 349.5 million in PPP loans 338.7 million net of deferred fees at June 30, 2020, total loans declined by 86.2 million, or 11 on an annualized basis, during the second quarter of 2020 compared with the quarter ended March 31, 2020. The decline in total loans excluding the PPP loans was impacted by continued elevated pay-offs within the commercial real estate loan portfolio, reduced line utilization within the commercial loan portfolio partially attributable to the PPP loan originations during the second quarter of 2020, and continued pay-downs in the Companys residential loan portfolio related to the current interest rate environment. 