Thursday, October 19th, 2017

1st Source reports second quarter income

Posted: Friday, July 21, 2017

1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported a record high net income of $16.67 million for the second quarter of 2017, an increase of 15.13% compared to $14.48 million reported in the second quarter a year ago, bringing the 2017 year-to-date net income to $32.88 million compared to $28.30 million in 2016, an increase of 16.18%.

The year-to-date net income comparison was positively impacted by gains on the sale of investment securities available-for-sale of $1.94 million net of an other than temporary impairment loss of $0.19 million and gains on the sale of fixed assets and leased equipment of $0.59 million. These increases were partially offset by the write-down of fixed assets of $0.41 million and a contribution to the 1st Source Foundation of $0.50 million.

Diluted net income per common share for the second quarter of 2017 was also a record high at $0.64, versus $0.56 in the second quarter of 2016. Diluted net income per common share for the first half of 2017 was $1.26 compared to the $1.08 earned a year earlier.

At its July 2017 meeting, the Board of Directors approved a cash dividend of $0.19 per common share. The cash dividend is payable to shareholders of record on August 7, 2017 and will be paid on August 15, 2017. This brings year-to-date dividends in 2017 to $0.56 per common share, an increase of 3.70% compared to $0.54 per common share at the same time last year.

According to Christopher J. Murphy III, Chairman, “We are very pleased with our record net income in the second quarter as 1st Source Corporation continues to experience healthy growth in loans and leases and deposits. Credit quality remains stable with year-to-date net charge-offs of $367,000 or 0.02% of average loans and leases. Average loans and leases were up a solid 4.95% for the quarter compared to the same period a year ago. Average deposits have held steady with a 3.59% increase from this time last year. Net interest income has increased 8.44% from the second quarter 2016, along with noninterest income increasing 8.25% while noninterest expense growth was held to a 2.68% increase over the same quarter of 2016.”

“In April, we announced an exciting partnership with the South Bend Cubs. 1st Source Bank has a five-year sponsorship of the South Bend Cubs’ Performance Center located at Four Winds Field. This collaboration is an investment for the bank intended to produce new primary relationships and opportunities for growth in our home market.”

“Moreover, we recently completed the reopening of the North Calumet banking center on July 17, 2017. This new branch is a significant rebuild and an enhancement to the client experience and our service offerings in the Valparaiso market.”

“As always, we will continue to help our clients achieve security, build wealth and realize their dreams,” Mr. Murphy concluded.