1st Source sees drop in quarterly profit

SOUTH BEND, Ind. (Inside INdiana Business) – South Bend-based 1st Source Corp. (Nasdaq: SRCE) is reporting second quarter net income of $18.5 million, down nearly 21% from the same period last year. The parent of 1st Source Bank partially attributes the drop to the negative impact from COVID-19.

The bank says the drop was also due to an increased provision for loan and lease losses primarily due to sizeable impairments in a few accounts and the negative economic impact from COVID-19.

Chief Executive Officer Christopher Murphy says the results reflect a continuation of the impact of COVID-19 which began at the end of the first quarter.

“We focused our efforts and are pleased to have been able to help our customers deal with the uncertainties caused by the coronavirus pandemic. We believe we remain well-positioned for the long-term, are well-capitalized and have appropriate reserves with a strong balance sheet. That said, the near-term level of uncertainty remains unprecedented both in severity and length of the economic downturn tied to the coronavirus,” said Murphy.

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