1st Source Corporation (Nasdaq:SRCE), parent company of 1st Source Bank, today reports net income of $14.87 million for the second quarter of 2011, an increase of 90.70% over the $7.80 million reported in the second quarter of 2010. For the first six months of 2011, net income for 1st Source Corporation is $25.47 million, up 45.78% compared to $17.47 million reported for the same period in 2010. Diluted net income per common share for the second quarter amounts to $0.61 compared with $0.25, an increase of 144.00% over the second quarter of 2010. Diluted net income per common share for the first half of 2011 is $1.04, up 82.46% over the $0.57 earned a year earlier.
At its July meeting, the Board of Directors approved a cash dividend of $0.16 per common share, an increase of 6.67% over the third quarter a year ago. The dividend is payable to shareholders of record on August 5, 2011 and will be paid on August 15, 2011.
Christopher J. Murphy III, Chairman and Chief Executive Officer, commented, “I am quite pleased with our performance this quarter. Our colleagues’ focus on working to ensure the success of our clients and providing distinctive convenience in our market has led to our strong performance. We are also benefiting from a focus on attracting new clients to the Bank by understanding their needs, offering sound advice during these unsettling times, ensuring our products and services are up-to-date and competitive, and always keeping our clients’ best interests in mind. We know our success is a mirror of our clients’ success so we continue to work hard to help make them successful.”
Mr. Murphy continued, “During the quarter, credit has continued to show improvement. Our non-performing assets decreased $11.22 million or 12.79% from the same period a year ago. We charged-off $1.22 million during the quarter which is down from second quarter last year. The net provision for loan and lease losses for the second quarter totaled $67,000 versus $5.80 million a year ago and the quarter end reserve for loan and lease losses is $85.01 million compared to a year end 2010 reserve of $86.87 million. Additionally, our net interest margin increased from 2010 levels to 3.72% for the quarter, while expenses have been held in check. The margin was positively impacted by interest recoveries on non-accrual loans and lower funding costs. Even with these good results, we still see choppy times ahead from the global economy and little to no growth in the national economy overall. As a result, we continue to keep a close watch on our loan portfolios and on our expenses. Moreover, the regulatory burden continues to grow and recent enactments will have a long range impact on the profitability of certain lines of business throughout the banking industry. As always, we will adjust accordingly,” Mr. Murphy concluded.
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