1st Source, record quarter, dividend declared
Posted: Thursday, April 20, 2017
1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported a record high net income of $16.21 million for the first quarter of 2017, an increase of 17.28% compared to $13.82 million reported in the first quarter a year ago. The net income comparison was positively impacted by gains of $1.29 million on the sale of investment securities available-for-sale, mortgage backed security prepayments of $0.45 million and gains on the sale of fixed assets of $0.20 million. These positives were partially offset by the write-down of fixed assets of $0.41 million and a contribution expense of $0.50 million to the 1st Source Foundation.
Diluted net income per common share for the first quarter of 2017 was also a record high at $0.62, versus $0.53 in the first quarter of 2016.
At its April 2017 meeting, the Board of Directors approved an increase in cash dividend to $0.19 per common share. This is an increase of 5.56% over the $0.18 per common share in the prior quarter. The cash dividend is payable to shareholders of record on May 2, 2017 and will be paid on May 12, 2017.
According to Christopher J. Murphy III, Chairman, “1st Source Corporation had a solid first quarter. Credit quality remained stable while we managed an increase in our net interest margin. We have maintained noninterest expenses at a level similar to the same quarter a year ago while seeing an increase in both net interest income and noninterest income.”
“During the quarter, we razed our outdated facility on North Calumet Avenue in Valparaiso, Indiana, and broke ground on a new banking center at the same location. We look forward to completing construction and continuing to grow in this market for many years. We also announced the closing of three other facilities in markets well served by other nearby 1st Source banking centers. In addition, we announced the opening of our new Sarasota banking center to serve our clients who move to Florida and wish to continue their strong personal and business relationships with the Bank. This is especially true with our wealth advisory and private banking clients.”
“It is important to note that our first quarter was positively impacted from the sale of securities the Bank has held for quite some time and from favorable credit trends, including recoveries, when compared to the first quarter of 2016.”
“As always, we will continue to help our clients achieve security, build wealth and realize their dreams,” Mr. Murphy concluded.