1st Source Corporation (Nasdaq:SRCE), parent company of 1st Source Bank, today announced record net income of $49.63 million for the year of 2012, an increase of 2.98% over the $48.20 million in 2011. The annual net income sets a record as the highest in company history. Fourth quarter net income was $12.35 million, up 10.41% compared to $11.18 million in the fourth quarter of 2011, due to higher mortgage banking income along with reduced loan and lease collection and repossession expenses.
Diluted net income per common share for the year was $2.02, an all-time record and an increase of 3.06% over the $1.96 per common share a year earlier. Diluted net income per common share for the fourth quarter was $0.50, up 11.11% compared to $0.45 per common share reported in the fourth quarter of the previous year.
At the January 2013 meeting, the Board of Directors approved a cash dividend of $0.17 per common share. The cash dividend is payable on February 15, 2013 to shareholders of record on February 4, 2013. Dividends for 2012 increased 3.13% over the previous year and achieved 25 years of consecutive dividend growth.
Christopher J. Murphy, III, Chairman of 1st Source, commented, "In spite of the rocky economy, 2012 was a good year for 1st Source Corporation. We set a record for annual net income. We continue our record of 25 years of consecutive dividend growth which puts us in a very select group nationally.”“We also had a busy fourth quarter. New banking centers were opened in Nappanee and Columbia City, Indiana; mobile banking and purchase rewards for our checking account clients were rolled out; and 1st Source Mortgage Express was introduced – a quick and easy online mortgage application that is especially handy for our clients wishing to refinance.” “Credit continues to improve. Our 30 day delinquency rate ended 2012 at 0.16% of total loans and leases; our net charge-offs for 2012 were 0.13% to average net loans and leases; while our net charge-offs in dollars were $4.09 million compared to $8.36 million a year earlier. Credit performance is strong, but our net interest margin is being squeezed. We continue to focus on controlling expenses to compensate.”