1st Source Corporation (Nasdaq: SRCE), parent company of 1st Source Bank, today reported net income of $10.61 million for the first quarter of 2011, up 9.60% compared to the $9.68 million reported in the first quarter a year ago. Diluted net income per common share for the first quarter of 2011 amounted to $0.43, up 30.30% over the $0.33 for the first quarter of 2010. Diluted net income improved $0.07 per common share due to redeeming all preferred stock in December 2010 issued to the Treasury as part of the Capital Purchase Program in January 2009.
At the April 2011 meeting, the Board of Directors approved a first quarter cash dividend of $0.16 per common share, an increase of 6.67% over the dividend declared in the same period a year earlier. The cash dividend will be payable on May 16, 2011, to shareholders of record May 6, 2011.
Christopher J. Murphy III, Chairman and Chief Executive Officer, commented on the first quarter by saying, “We continue to make steady progress with our performance. The economic environment in the geographic markets we serve seems to be slowly improving along with the increasingly positive outlooks we are hearing from our clients. All of our colleagues are focused on providing straight talk and sound advice as well as excellent customer service, ensuring we deliver a good value to our clients while we continue to help them work through these challenging times.”
Mr. Murphy continued, “Credit quality reflects the improvement across the region as is evidenced by our ratio of nonperforming assets to net loans and leases dropping to 2.81% this quarter from 2.98% a year ago and net charge offs decreasing to $2.91 million for the quarter versus $4.80 million a year ago. Expense control remains good, and the net interest margin has increased to 3.71%. All in all, the first quarter was a good start to the year for 1st Source Corporation.”