Chesterton Tribune

 

 

1st Source reports record profits in the third quarter

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1st Source 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.

In the year-to-date, net income was $50.06 million, a 17.61-increase over the year-ago.

The year-to-date 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.

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 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 year-ago.

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 the year-ago.

“1st Source 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.”

“We believe 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.”

 

Posted 10/20/2017

 
 
 
 

 

 

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