1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported a record high net income of $19.12 million for the first quarter of 2018, an improvement of 17.96% compared to $16.21 million reported in the first quarter a year ago. Income before taxes was $25.00 million compared to $24.92 million in the first quarter of 2017. The pretax income comparison was positively impacted by increased net interest income of $6.81 million primarily due to rising lending rates, higher average loan and lease balances and the recognition of a $0.62 million unaccreted purchase discount from an early loan payoff. These positives were offset by a $2.79 million increase in the provision for loan and lease losses to support loan and lease growth and a $4.44 million rise in noninterest expense. Non-recurring first quarter 2018 costs were approximately $1.60 million.
Diluted net income per common share for the first quarter of 2018 was a record high $0.73, versus $0.62 in the first quarter of 2017.
At its April 2018 meeting, the Board of Directors approved a cash dividend of $0.24 per common share, up 9.09% from $0.22 per common share in the prior quarter and up 26.32% from the $0.19 per common share declared a year ago. The cash dividend is payable to shareholders of record on May 7, 2018 and will be paid on May 15, 2018.
According to Christopher J. Murphy III, Chairman, “1st Source Corporation had a strong first quarter and crested $6 billion in asset size. We continue to achieve steady net income and see healthy growth in loans, leases, and deposits. Credit quality remains favorable with year-to-date net charge-offs of only $338,000 or 0.03% of average loans and leases. Average loans and leases were up a strong 9.59% for the quarter compared to the same period last year. Average deposits were also up a solid 9.52% from this time last year. Net interest income has increased 15.56% from the first quarter 2017, along with noninterest income increasing 2.15%. Noninterest expenses increased 10.79% from the same quarter of 2017.”
“We have started out 2018 with strong loan growth. As we move deeper into the year, we will continue our focus on organic, core deposit growth to support further loan growth,” added Murphy.
“As always, our mission each day is to help our clients achieve security, build wealth and realize their dreams. We are looking forward to carrying out this mission for the rest of 2018,” Murphy concluded.
