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EX - 99.1 2 ex09302021991 pressrelease.htm EX - 99.1 Q3'21 EARNINGS RELEASE For : Immediate Release October 21 , 2021 Contact : 1st Source Corporation Reports Record Third Quarter Results , Cash Dividend Declared Exhibit 99.1 Brett Bauer 574-235-2000 • • • QUARTERLY HIGHLIGHTS Net income was a record $ 32.48 million for the quarter , up 7.48 % from the second quarter and up 61.95 % from the third quarter of 2020. Diluted net income per common share was also a record at $ 1.29 , up compared to the $ 1.19 in the previous quarter and up from the prior year's third quarter of $ 0.78 . Cash dividend of $ 0.31 per common share was approved by our Board , up 10.71 % from the $ 0.28 per common share declared a year ago . Small Business Administration ( SBA ) forgiveness and customer pay downs of Paycheck Protection Program ( PPP ) loans amounted to approximately $ 150.16 million during the quarter which contributed to the recognition of $ 6.69 million in PPP - related loan fees in the quarter . Due to improvement in overall credit quality , we recognized a recovery in our provision for credit losses of $ 2.56 million for the third quarter of 2021 compared to a $ 9.30 million increase in the provision for credit losses during the same period last year . Charitable contribution of $ 3 million was made to the 1st Source Foundation during the quarter to support previously funded COVID - 19 initiatives in our Community Bank markets . South Bend , IN - 1st Source Corporation ( NASDAQ : SRCE ) , parent company of 1st Source Bank , today reported record quarterly net income of $ 32.48 million for the third quarter of 2021 , up 61.95 % from the $ 20.06 million reported in the third quarter a year ago , bringing the 2021 year - to - date net income to $ 90.81 million compared to $ 54.97 million in 2020 , an increase of 65.19 % . Diluted net income per common share for the third quarter of 2021 was up 65.38 % to $ 1.29 versus $ 0.78 in the third quarter of 2020. Diluted net income per common share for the first nine months of 2021 was $ 3.59 compared to $ 2.14 a year earlier , a 67.76 % increase . At its October 2021 meeting , the Board of Directors approved a cash dividend of $ 0.31 per common share , up 10.71 % from the $ 0.28 per common share declared a year ago . The cash dividend is payable to shareholders of record on November 2 , 2021 and will be paid on November 12 , 2021 . Christopher J. Murphy III , Chairman and Chief Executive Officer , commented , " We are happy to report record net income for the third consecutive quarter . Credit quality improvements continued during the third quarter which resulted in a reduction to our allowance for loan and lease losses . Virtually all COVID - 19 related loan and lease modifications ended their deferment during the quarter . In addition , our clients continued to receive Paycheck Protection Program ( PPP ) loan forgiveness during the third quarter . Total PPP loans forgiven in 2021 were $ 441.48 million which has provided $ 13.26 million in fee income . The Bank contributed $ 3 million of the PPP income to the 1st Source Foundation to help with COVID - 19 related initiatives in the communities we serve . Furthermore , liquidity remains elevated and we are focused on its deployment through growing our loan and lease portfolio by deepening existing client relationships as well as developing new ones . -1-