First Source Corp., which has an extensive bank branch presence in Porter and LaPorte counties, reported profit fell 7.3 percent year-over-year to $14.48 million in the second quarter.
So far this year, the South Bend-based parent company of 1st Source Bank earned $28.3 million, a 2.88 percent decline from the $29.14 million it made during the same period last year. The bank blamed the decline on reduced interest, more loan and lease losses, and a write-down of an equity investment.
Income per share was $1.08 per share during the first half of the year, down slightly from the $1.10 per share earnings during the same period in 2015.
“We saw solid growth in loans and leases and deposits again this quarter as we continue to add new clients to the bank,” chairman Christopher J. Murphy III said.
First Source Bank has increased dividends to 54 cents per share, up from 49 cents per share through the same period last year.
Credit quality remains positive but net interest margins continue to be negatively impacted by low interest rates, Murphy said.
Interest income rose 1.62 percent year-over-year in the second quarter, while net interest income grew by 3.15 percent to $84.5 million in the first half of the year. First Source is also in the process of building a larger branch in downtown Warsaw.
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