Corporation, parent company of 1st Source Bank, is reporting a record high
net income of $17.18 million for the third quarter of 2017, a 20.46-percent
increase over the year-ago period.
year-to-date, net income was $50.06 million, a 17.61-increase over the
net-income improvement 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.
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 was a record high of 66 cents,
compared to 55 cents in the year-ago. Diluted net income per common share in
the year-to-date was also a record at $1.92, compared to $1.63 in the
At its October
meeting, the Board of Directors approved a cash dividend increase to 20
cents per common share from 19 cents. The cash dividend is payable to
shareholders of record on Nov. 6 and will be paid on Nov. 15. This brings
year-to-date dividends in 2017 to 76 cents, an increase of 5.56 percent over
Corporation had a strong third quarter, Chair Christopher Murphy III said.
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 percent of average loans and leases.
Average loans and leases were up a solid 4.74 percent for the quarter
compared to the same period last year. Average deposits grew 4.02 percent
from the third quarter of 2016. Net interest income has increased 10.62
percent from the third quarter 2016, along with noninterest income
increasing 12.91 percent. Noninterest expenses increased 8.06 percent from
the same quarter of 2016.
Hurricanes Harvey and Irma will have little to no impact on our financial
results, Murphy added. 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.