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1st Source Bank turns record profit in the 1st quarter

1st Source Bank headquarters is shown in downtown South Bend. The bank posted a record profit in the first quarter.

1st Source Bank posted a record profit of $82.41 million in 2018, the highest in its 156-year history.

The South Bend-based bank, which has an extensive footprint in Porter and LaPorte County, boosted profits by 21.11 percent as compared to $68 million earned in 2017. 

The bank earned a record $3.16 per share last year, up from $2.60 the year before.

“1st Source Corp. had back-to-back record years in 2018 and 2017," Chairman Christopher Murphy III said. "Also, 2018 was our 31st consecutive year of dividend growth. Reflecting the strong economy on both a national and local level, average loans and leases were up a solid 8.75 percent for the quarter compared to the same period a year ago. Average deposits had strong growth of 8.57 percent from this time last year. The net interest margin continued to improve with the rising interest rate environment."

The bank made $105.3 million in income before taxes last year, up 3.62 percent year over year.

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In the fourth quarter, 1st Source pulled in $21.45 million, up 19.18 percent year-over-year as compared to $17.99 million during the fourth quarter of 2017.

“In the final quarter of 2018, 1st Source’s commitment to helping our clients achieve security, build wealth, and realize their dreams using straight talk and sound advice, along with our acclaimed personal service, convenient branches and highly rated on-line and mobile services, attracted many new clients who were frustrated by the disruption and lack of transparency in their previous banking situation," Murphy said. "We welcomed our new clients to the bank and appreciate the opportunity to prove to them that we are the bank on which they can rely."

The bank's loans and leases grew 9.74 percent to $421.88 million last year. Average deposits increased by 10.47 year-over-year to $470.42 million.

1st Source will pay out a dividend of $0.27 per common share on February 14 to anyone who owned its publicly traded stock as of February 4, which was trading at about $45.85 a share by close of business Friday. The dividend is up 22.73 percent from the $0.22 per common share declared a year ago.

“Additionally, we are pleased with the success of our sustainability efforts in the financing of solar installations across the country and in testing them at our own locations," Murphy said. "We are also pleased to be able to help the many organizations across our region serving our clients and neighbors. We provide financial and volunteer support helping assure a strong social safety net, good health care, and promising education in the markets we serve.”

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Business Reporter

Joseph S. Pete is a Lisagor Award-winning business reporter who covers steel, industry, unions, the ports, retail, banking and more. The Indiana University grad has been with The Times since 2013 and blogs about craft beer, culture and the military.