1st Source Corp. (Nasdaq: SRCE) has reported results for the first fiscal quarter. The South Bend-based company recorded record net income of $22.2 million, compared to $19.1 million for the same period the previous year.
1st Source Corporation is the parent company of 1st Source Bank.
The net income comparison was positively impacted by increased net interest income of $4.42 million primarily due to higher loan rates and higher average loan and lease balances.
“1st Source Corporation had a strong first quarter. We continue to achieve steady growth in net income and see healthy increases in loans, leases, and deposits. Our biggest credit challenge in the quarter was due to a further charge-off of $3.0 million on the large syndicated aircraft account which I have mentioned previously. The remaining balance is less than $1 million, payment of which is anticipated to come from a final settlement of escrowed funds. The cost of resolving the complex issues of this bankruptcy from legal, investment banking, and consulting fees has proven to be exceedingly high. This reminds us we should be wary of complex lending structures,” said Christopher J. Murphy III, Chairman, in a news release.