Friday, August 18th, 2017

First quarter earnings increase at 1st Source

Posted: Friday, April 25, 2014

1st Source Corporation (Nasdaq: SRCE), parent company of 1st Source Bank, today announced  net income of $13.63 million for the first quarter of 2014, up 9.90% compared to the $12.40 million reported in the first quarter a year ago. Diluted net income per common share for the first quarter of 2014 amounted to $0.55, up 10.00% over the $0.50 in the first quarter of 2013.

At its April 2014 meeting, the 1st Source Board of Directors approved a cash dividend of $0.18 per common share.  The cash dividend is payable on May 15, 2014 to shareholders of record as of May 5, 2014.

According to Christopher J. Murphy, III, Chairman, “It was another good quarter for 1st Source Corporation. All of our performance benchmarks are moving in the right direction. Net income was up almost 10.00% over a year ago, we had growth in loans along with net recoveries in our loan and lease portfolio. Also, net interest income was up, non-interest income was up, and expenses were down in spite of increased snow plowing and heating costs from record cold and snow in the first quarter. Additionally, we increased our dividend 5.88% over the first quarter of last year, continuing our streak of increasing dividends for over 26 years, a feat that puts us in the top 3% of publicly traded companies. During the quarter, we held a grand opening for a new banking center in Lafayette, a growth market for us in Indiana; and we had three banking centers in Ft. Wayne in the midst of remodeling to serve our clients more effectively and conveniently. Most importantly, we continued to add new client relationships throughout the bank in business banking, personal banking, specialty finance, personal asset management and insurance.”

“We remain focused on our goals, and look forward to better weather and a steadily improving economy in the coming months,” Murphy concluded.

Return on average total assets for 1st Source Corporation was 1.18% compared to 1.11% a year ago, and return on average common shareholders' equity was 9.30% compared to 8.90% for the first quarter of 2013. As of March 31, 2014, the 1st Source common equity-to-assets ratio was 12.50%, up from 12.47% a year ago and its tangible common equity-to-tangible assets ratio was 10.89% compared to 10.76% a year earlier. Common shareholders’ equity was $596.59 million, up 4.97% from March 31, 2013. At the end of March 2014, total assets were $4.77 billion, up 4.72% from the $4.56 billion a year ago. Total loans and leases at March 31, 2014 increased 6.06%, and total deposits at March 31, 2014 increased slightly from a year ago.

For the first quarter of 2014, 1st Source provided $0.80 million to the reserve for loan and lease losses compared to $0.76 million in the first quarter of 2013. Net recoveries were $701,000 for the first quarter compared to net charge-offs of $60,000 for the first quarter of 2013. The reserve for loan and lease losses as of March 31, 2014 was 2.38% of total loans and leases, compared to 2.49% a year earlier. The ratio of non-performing assets to net loans and leases dropped to 0.98% on March 31, 2014, compared to 1.41% for the same period last year.

Tax-equivalent net interest income was $39.09 million for the first quarter of 2014, compared to the $38.22 million from 2013's first quarter, and the net interest margin was 3.59% compared to 3.64% in the first quarter of 2013 and 3.59% in the fourth quarter of 2013.

Non-interest income for the three-month period ended March 31, 2014 was $19.40 million, an increase of 2.37% as compared to the first quarter of 2013. Non-interest income increased mainly due to gains on the sale of investment securities available-for-sale and higher trust fee income. Non-interest expense for the three-month period ended March 31, 2014 was $35.97 million, a decrease of 1.58% as compared to the first quarter of 2013. Non-interest expense decreased primarily as a result of lower loan and lease collection and repossession expenses.

1st Source common stock is traded on the NASDAQ Global Select Market under “SRCE” and appears in the National Market System tables in many daily newspapers under the code name “1st Src.” Since 1863, 1st Source has been committed to the success of the communities it serves. For more information, visit www.1stsource.com.