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1st Source Bank sees drop in quarterly profit

(IIB Photo/Wes Mills)

SOUTH BEND, Ind. (Inside INdiana Business) — South Bend-based 1st Source Corp. (Nasdaq: SRCE) is reporting first quarter net income of $16.4 million, down from $22.2 million during the same period last year. The parent of 1st Source Bank says one of the reasons for the drop is the “likely negative economic impact on our portfolio from COVID-19.”

Chief Executive Officer Christopher Murphy says despite the tough quarter, the bank continues to help customers navigate the uncertainties caused by the pandemic. 

“We are well-positioned for the long term, are well-capitalized, have appropriate reserves, and have a strong balance sheet,” Murphy said in a news release. “That said, the near-term level of uncertainty is unprecedented as to the severity and length of the economic downturn tied to the coronavirus offset possibly by the effectiveness of the government’s enormous stimulus efforts.”

Murphy says the bank has processed more than 2,000 small business loans through the federal Paycheck Protection Program, totaling more than $554 million. 

You can connect to the full earnings report by clicking here.