Friday, November 24th, 2017

1st Source reports record quarterly earnings

Posted: Friday, October 20, 2017

1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported a record high net income of $17.18 million for the third quarter of 2017, an increase of 20.46% compared to $14.26 million reported in the third quarter a year ago, bringing the 2017 year-to-date net income to $50.06 million compared to $42.56 million in 2016, an increase of 17.61%.

The year-to-date net income comparison was positively impacted by gains on the sale of investment securities available-for-sale of $2.76 million. Also, gains on the sale of fixed assets and leased equipment of $0.86 million and solar tax equity investment gains of $0.32 million added additional income. These increases were partially offset by costs on repossessed aircraft of $0.74 million, the write-down of fixed assets of $0.60 million and a contribution to the 1st Source Foundation of $0.50 million.

Diluted net income per common share for the third quarter of 2017 was a record high at $0.66, versus $0.55 in the third quarter of 2016. Diluted net income per common share for the first nine months of 2017 was also a record at $1.92 compared to the $1.63 a year earlier.

At its October 2017 meeting, the Board of Directors approved a cash dividend increase to $0.20 per common share from $0.19. The cash dividend is payable to shareholders of record on November 6, 2017 and will be paid on November 15, 2017. This brings year-to-date dividends in 2017 to $0.76 per common share, an increase of 5.56% compared to $0.72 per common share at the same time last year.

According to Christopher J. Murphy III, Chairman, “1st Source Corporation had a strong third quarter. We continue to achieve record net income and see healthy growth in loans, leases, and deposits. Credit quality remains favorable with year-to-date net charge-offs of only $529,000 or 0.02% of average loans and leases. Average loans and leases were up a solid 4.74% for the quarter compared to the same period last year. Average deposits grew 4.02% from the third quarter of 2016. Net interest income has increased 10.62% from the third quarter 2016, along with noninterest income increasing 12.91%. Noninterest expenses increased 8.06% from the same quarter of 2016.”

“We believe Hurricanes Harvey and Irma will have little to no impact on our financial results. We are however, working proactively to help our banking and specialty finance clients that live and operate businesses in the affected areas of Texas, Florida, and St. Thomas in the U.S. Virgin Islands. In order to provide relief and aid in recovery, we have offered interest only or deferred payments on loans based on the customer's preference and level of damage.” Mr. Murphy concluded.