1st Source announced record net income of $54.96 million for the year of 2013, a 10.73% increase over the $49.63 million in 2012. 1st Source said the annual net income is the highest in company history. Fourth quarter net income was $13.72 million, up 11.10% compared to $12.35 million in the fourth quarter of 2012.

Although a regional bank, 1st Source competes for business nationally by offering specialized financing services for new and used private and cargo aircraft, automobiles for leasing and rental agencies, medium and heavy duty trucks, construction and environmental equipment.

A quick look at 1st Source’s specialized finance portfolio composition showed an overall year-over-year increase in all segments, except auto, light truck and environmental equipment, which was down $13.6 million from the previous year to end 2013 at $424.5 million. Medium- and heavy-duty trucks, aircraft financing and construction equipment financing each posted increases of $33.0 million, $41.6 million, $54.1 million, respectively.

As a percentage of all loans and leases, 1st Source has the largest concentration of equipment related loan and leases than most other commercial banks. As 12/31/13, specialty lending’s year-end portfolio totaled $1.70 billion, which was up 7.3% year/year, and represented 48% of the total loans and leases portfolio for the entire bank. In addition, 1st Source shows an operating lease portfolio of about $61.0 million, net of depreciation.

Christopher J. Murphy, III said, “The yearly results were helped considerably by our credit performance. Our credit quality continues to be strong as net charge-offs for the year were remarkably low at about two tenths of one percent of average loans and leases.”

To read the 1st Source news release click here.