1st Source reported that net income of $48.20 million for the year of 2011, an increase of 16.85% over the $41.24 million reported in 2010. The bank said the annual net income set a record as the highest in company history.

The bank noted that its provision charge of $3.1 million for the full year 2011 compared to $19.2 million a year earlier as net charge-offs of $8.36 million in 2011 compared to $20.57 million in 2010.

The bank said fourth quarter net income was $11.18 million, down 11.02% compared to $12.57 million in the fourth quarter of 2010, partially due to lower interest recoveries on nonperforming loans and lower mortgage banking income in the quarter.

Christopher J. Murphy, III, chairman of 1st Source, commented, “2011 was a good year for 1st Source Corporation. We set a record for annual net income and for earnings per share; and we continue a record of 24 years of consecutive dividend growth.” Murphy added, “Our focus has been on three things – outstanding customer service, pristine credit quality, and superior financial returns.”

To read the full 1st Source news release click here.