1st Source Reports Record YTD Earnings; Notes Aircraft Related Charge-Off
OCT 22, 2018 - 7:20 am
1st Source reported Q3/18 net income of $19.89 million, up 15.75% compared to $17.18 million reported in Q3/17. This brought 2018 year-to-date net income to a record of $60.97 million compared to $50.06 million in 2017, an increase of 21.80%.
The following highlights were excerpted from the 1st Source news release:
Commercial and agriculture loan outstanding of $1,062.9 million was up 19% from $893.2 million at the same period in 2017
Auto and light truck loan outstanding of $562.5 million was up 15.3% from $505.1 million at the end of the same period in 2017
Medium and heavy duty truck outstandings of $271.6 million were down 5.7% from $288.0 million at the end of the same period in 2017
Aircraft loan outstandings of $836.5 million was up 2.5% from $816.1 million for the same period end in 2017
Construction equipment loan outstandings of $654.6 million were up 20.1% from $541.8 million at the end of the same period in 2017
According to Christopher J. Murphy III, chairman, “We are pleased with our increase in revenue in the third quarter as 1st Source experienced growth in average loans and leases and average deposits with some month end seasonal adjustments. Average loans and leases were up a solid 9.91% for the quarter, compared to the same period a year ago. Average deposits also increased with strong growth of 12.43% from this time last year. Net interest income has increased 15.10% from the third quarter 2017 while non-interest income decreased 5.99% and non-interest expense increased by 6.48% over the same quarter in 2017.
“Our biggest credit challenge in the quarter was with larger charge-offs and write downs. We have written our assets down to what we believe are realizable values. The majority of the charge-offs is from one large syndicated aircraft account in which we are a small participant. This credit is unique in both size and complexity within our portfolio.”
In 2016, the New York State attorney general sued Northern Leasing Systems (NLS), its officers and outside counsel for allegedly conducting business in a “persistently fraudulent or illegal manner.” The action was prompted by complaints from more than 800 equipment... read more
Joel Mikolich started his career with a machine tool distributor and entered the financial side of the industry as a captive broker, eventually transitioning to a bank-owned equipment finance company. From there he moved into various sales and management positions... read more