1st Source corp., the parent company of 1st Source Bank, increased its dividend by 5.88 percent to 18 cents a share after a bump in its first quarter profit.
The South Bend-based bank's earnings rose by 9.9 percent to $13.63 million in the first quarter of 2014. 1st Source, which has multiple branches in Porter and LaPorte counties, turned a profit of $12.4 million over the same time period last year. The bank expanded with a new branch in Lafayette and expects to benefit from a steadily improving economy in the coming months.
"It was another good quarter for 1st Source Corp.," said Chairman Christopher Murphy III. "All of our performance benchmarks are moving in the right direction. Net income was up almost 10 percent over a year ago, we had growth in loans along with net recoveries in our loan and lease portfolio. Also, net interest income was up, noninterest income was up, and expenses were down in spite of increased snow plowing and heating costs from record cold and snow in the first quarter."
1st Source continued its streak of increasing dividends for more than 26 years, putting it in the top 3 percent of publicly traded companies. The dividend is payable to shareholders on May 15.
The bank's diluted net income was 55 cents per common share in the first quarter, a 10 percent increase over the same period last year. Return on average assets rose to 1.18 percent, up from 1.11 percent a year ago.
1st Source has more than 75 locations in northern Indiana and southwestern Michigan. Locally, the bank has branches in Chesterton, Hebron, La Porte, Michigan City, Portage, Valparaiso and Westville.