(photo courtesy of 1st Source Bank)

South Bend-based 1st Source Corp. (Nasdaq: SRCE) is reporting record full-year net income of $119 million, up from $81 million the previous year. Chief Executive Officer Christopher Murphy says the banking company saw major benefits from the Paycheck Protection Program.

Murphy says the record earnings were driven by PPP income and the ability to relieve the bank’s allowance for loan and lease losses.

“In many ways this averages out the performance of the last two years since 2020’s income was down compared to prior years as we anticipated more losses from the impact of COVID-19,” said Murphy. “We welcome the positive impact provided by the PPP, the Federal Reserve’s extremely accommodative monetary policy and other government fiscal stimulus programs in response to the pandemic. They have collectively led to a stronger economic recovery than we anticipated for us, our clients and the communities we serve.”

The parent of 1st Source Bank is also reporting fourth quarter net income of $27.7 million, up from $26.5 million during the same period in 2020.

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