1st Source Corporation (Nasdaq: SRCE), parent company of 1st Source Bank, today reported net income of $9.68 million for the first quarter of 2010, up 54.84% compared to the $6.25 million reported in the first quarter a year ago. Diluted net income per common share for the first quarter of 2010 amounted to $0.33, up 65.00% over the $0.20 for the first quarter of 2009.
At the April 2010 meeting, the Board of Directors approved a first quarter cash dividend of $0.15 per common share, an increase of 7.14% over the dividend declared in the same period a year earlier. The cash dividend will be payable on May 17, 2010, to shareholders of record May 5, 2010.
Christopher J. Murphy III, Chairman and Chief Executive Officer, commented on the first quarter by saying, "Our first quarter performance was one of steady progress. Our net interest margin rebounded to 3.50% in the first quarter from 3.27% for the fourth quarter of 2009, and 3.03% a year ago. The structures we put in place from better pricing control to modeling seem to be bearing fruit."
Mr. Murphy continued, "On the credit side, our non-performing loans and leases may have peaked at year end 2009 at $101.01 million as they declined to $95.97 million as of this quarter end. Our ratio of nonperforming assets to total loans and leases slowly backed down to 2.98% this quarter end after reaching 3.15% at year end 2009. Our annualized net charge-offs to average loans and leases were a manageable 0.63% for the first quarter. Of course, it is too early to conclude that the economy is in a sustained recovery, so we could experience further deterioration or continued improvement as time goes on.”"We remained focused on helping our clients make wise choices during what is still a difficult time for many. Our efforts were concentrated on delivering outstanding client service, providing straight talk and sound advice, maintaining excellent cost control, and of course, keeping a close eye on credit quality. Additionally, we were pleased during the quarter to be identified as number 8 out of the Top 150 Best Performing Banks in the Country by Bank Director’s Magazine among banks over $3 billion in size. All in all, it was an improving quarter and a good one for 1st Source," concluded Mr. Murphy.