Chesterton Tribune



1st Source Bank reports solid second quarter

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1st Source Corporation, parent company of 1st Source Bank, is reporting net income of $14.49 million for the second quarter of 2014, compared to $13.94 million in the year-ago period, an increase of 3.96 percent.

In the year-to-date, net income was $28.13 million, an increase of 6.76 percent, the company said in a statement released on Thursday.

Diluted net income per common share for the second quarter was 59 cents, compared 56 cents in the year-ago, an increase of 5.36 percent.

In the year-to-date, diluted net income per common share for the first half of 2014 was $1.15, an increase of 7.48 percent.

At its July meeting, the Board of Directors approved a cash dividend of 18 cents per common share. The dividend is payable to shareholders of record on August 5 and will be paid on August 15.

“1st Source Corporation turned in a solid performance in the second quarter,” 1st Source Corporation Chair Christopher J. Murphy said. “Loan growth was healthy, up $145.97 million this quarter over the previous quarter, and up $230.15 million over the same quarter a year ago. In spite of somewhat lower yields, we have successfully maintained our net interest margin which held steady at 3.59 percent. Similar to national trends, in our markets we are seeing a consolidation of clients and a return of some of our competitors to loan structure and pricing practices that were prominent before the financial market meltdown in 2008. If this continues, it could put further pressure on interest margins and adversely impact credit quality across the country.”

Other 2Q numbers:

* Total assets were $4.93 billion, up 6.19 percent from the year-ago.

* Total loans and leases were $3.72 billion, up 6.59 percent.

* Total deposits were $3.82 billion, up 3.11 percent.

* As of June 30, 2014, the common equity-to-assets ratio was 12.06 percent, down from 12.24 percent a year ago; while the tangible common equity-to-tangible assets ratio was 10.50 percent, compared to 10.56 percent a year ago.

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.” 1st Source serves the Northern Indiana and Southwest Michigan and is the largest locally controlled financial institution headquartered in the area.


Posted 7/28/2014