1st Source Corporation Announces Second Quarter Earnings, Cash Dividend Declared

QUARTERLY HIGHLIGHTS

  • Net income of $14.48 million and diluted net income per common share of $0.56.
  • Return on average assets of 1.09% and return on average common shareholders' equity of 8.84%.
  • Net recoveries of $0.11 million and nonperforming assets to loans and leases of 0.49%.
  • Average loans and leases grew $304.99 million or 8.03% from the second quarter of 2015.
  • Average deposits grew $373.33 million or 9.51% from the second quarter of 2015.
  • Net interest income on a tax-equivalent basis increased $0.68 million or 1.62% from the second quarter of 2015.
  • Noninterest income increased $0.77 million or 3.56% from the second quarter of 2015 (decreased 2.53% excluding equipment rental income).
  • Noninterest expenses increased $1.79 million or 4.69% from the second quarter of 2015 (increased 2.20% excluding leased equipment depreciation).

SOUTH BEND, Ind.--()--1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported net income of $14.48 million for the second quarter of 2016, compared to $15.63 million reported in the second quarter a year ago bringing the 2016 year-to-date net income to $28.30 million compared to $29.14 million in 2015. The quarterly and year-to-date net income comparisons were negatively impacted by a reduction in net interest recoveries of $1.35 million and $1.41 million, respectively, a higher provision for loan and leases losses of $1.24 million and $1.86 million, respectively, and by the writedown of an available-for-sale equity investment. These negatives were partially offset by gains of $1.02 million and $1.86 million, respectively, on a Volcker Rule required liquidation of a partnership investment.

Diluted net income per common share for the second quarter of 2016 was $0.56, versus $0.59 in the second quarter of 2015. Diluted net income per common share for the first half of 2016 was $1.08, compared to the $1.10 earned a year earlier.

At its July 2016 meeting, the Board of Directors approved a cash dividend of $0.18 per common share. The cash dividend is payable to shareholders of record on August 2, 2016 and will be paid on August 12, 2016. This brings dividends this year to $0.540 per common share compared to $0.491 per common share at the same time last year.

According to Christopher J. Murphy III, Chairman, “We saw solid growth in loans and leases and deposits again this quarter as we continue to add new clients to the bank. Average loans and leases were up a healthy 8.03% from a year ago and average deposits were strong, up 9.51% from that same period. Given the challenging low interest rate environment, we had a steady performance overall. Just as importantly, credit quality remains positive with net recoveries for the quarter. Net interest margins continue to be negatively impacted by low interest rates and while flat compared to last quarter are down 19 basis points compared to a year ago.”

“We continue to reinvest in our facilities and this quarter completed renovations of our banking centers in Bluffton and Huntington, Indiana, making the Fort Wayne region our first to be fully renovated. We also started construction of a new larger office in the heart of downtown Warsaw, Indiana,” Mr. Murphy concluded.

SECOND QUARTER 2016 FINANCIAL RESULTS

Loans

Average loans and leases of $4.11 billion increased $304.99 million, or 8.03% in the second quarter of 2016 from the year ago quarter and have increased $96.68 million, or 2.41% from the first quarter. Year to date average loans and leases of $4.06 billion increased $319.32 million, or 8.54% from the first six months of 2015.

Deposits

Average deposits of $4.30 billion grew $373.33 million, or 9.51% for the quarter ended June 30, 2016 from the year ago quarter and have increased $147.13 million, or 3.54% compared to the first quarter. Average deposits for the first six months of 2016 were $4.23 billion an increase of $354.52 million or 9.16% from the same period a year ago.

Net Interest Income and Net Interest Margin

Second quarter 2016 tax-equivalent net interest income of $42.75 million increased $0.68 million, or 1.62% from the quarter a year ago and increased $1.00 million, or 2.40% from the first quarter. Second quarter 2016 net interest recoveries were down $1.35 million from the year ago quarter, resulting in an 11 basis point reduction to the net interest margin. Second quarter 2016 net interest recoveries were slightly higher relative to the first quarter.

For the first six months of 2016, tax-equivalent net interest income was $84.50 million, an increase of $2.58 million, or 3.15% compared to the same period a year ago. Net interest recoveries for the first half of 2016 were down $1.41 million from the first half of 2015, resulting in a 6 basis point reduction to the net interest margin.

Second quarter 2016 net interest margin was 3.45%, a decrease of 19 basis points from the 3.64% for the same period in 2015 and remained unchanged from the first quarter.

Net interest margin for the first six months of 2016 was 3.45%, a decrease of 16 basis points from the 3.61% for the same period in 2015.

Noninterest Income

Noninterest income increased $0.77 million or 3.56% and $2.64 million or 6.40% in the three and six month periods ended June 30, 2016, respectively over the same periods a year ago. The increase in noninterest income was mainly due to higher equipment rental income related to an increase in the average equipment rental portfolio and gains on the liquidation of a partnership investment required by the Volcker Rule, which was offset by lower monogram fund income and an other than temporary impairment writedown on an available-for-sale equity security.

Noninterest Expense

Noninterest expense increased $1.79 million or 4.69% and $4.44 million or 5.28% for the three and six months ended June 30, 2016, respectively over the comparable periods a year ago. The increase in noninterest expense was primarily due to higher depreciation on leased equipment and increased loan and lease collection and repossession expenses. Depreciation on leased equipment was higher as a result of an increase in the average equipment rental portfolio. Loan and lease collection and repossession expenses increased mainly due to lower recoveries on repurchased mortgage loans and fewer gains on the sale of other real estate owned.

Credit

The reserve for loan and lease losses as of June 30, 2016 was 2.20% of total loans and leases compared to 2.21% at March 31, 2016 and 2.25% at June 30, 2015. Net recoveries of $0.11 million were recorded for the second quarter of 2016 compared with net recoveries of $0.68 million in the same quarter a year ago. Year to date, net recoveries of $0.32 million have been recorded in 2016, compared to net recoveries of $0.35 million for the first half of 2015.

Due primarily to an increase in loan and lease outstandings and special attention reserves, the provision for loan and lease losses for the second quarter 2016 increased $1.24 million compared with the same period in 2015 and was up $1.07 million from the first quarter. The provision for loan and lease losses for the first six months of 2016 was $3.02 million up $1.86 million from the same period in 2015.

The ratio of nonperforming assets to net loans and leases was 0.49% as of June 30, 2016, down from 0.55% on June 30, 2015 and down from the 0.51% on March 31, 2016.

Capital

As of June 30, 2016, the common equity-to-assets ratio was 12.30%, compared to 12.39% at March 31, 2016 and 12.60% a year ago. The tangible common equity-to-tangible assets ratio was 10.90% at June 30, 2016 and 10.96% at March 31, 2016 compared to 11.09% a year earlier. The Common Equity Tier 1 ratio was 12.20% at June 30, 2016 compared to 12.37% at March 31, 2016 and 12.72% a year ago. During 2016, the Company repurchased $8.01 million of common stock in several open market transactions.

ABOUT 1ST SOURCE CORPORATION

1st Source common stock is traded on the NASDAQ Global Select Market under “SRCE” and appears in the National Market System tables in many daily newspapers under the code name “1st Src.” Since 1863, 1st Source has been committed to the success of the communities it serves. For more information, visit www.1stsource.com.

1st Source serves the northern half of Indiana and southwest Michigan and is the largest locally controlled financial institution headquartered in the area. While delivering a comprehensive range of consumer and commercial banking services through its community bank offices, 1st Source has distinguished itself with highly personalized services. 1st Source Bank also 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, and construction equipment. The Corporation includes 80 community banking centers in 17 counties, 8 trust and wealth management locations, 10 1st Source Insurance offices, as well as 22 specialty finance locations nationwide.

FORWARD LOOKING STATEMENTS

Except for historical information contained herein, the matters discussed in this document express “forward-looking statements.” Generally, the words “believe,” “contemplate,” “seek,” “plan,” “possible,” “assume,” “expect,” “intend,” “targeted,” “continue,” “remain,” “estimate,” “anticipate,” “project,” “will,” “should,” “indicate,” “would,” “may” and similar expressions indicate forward-looking statements. Those statements, including statements, projections, estimates or assumptions concerning future events or performance, and other statements that are other than statements of historical fact, are subject to material risks and uncertainties. 1st Source cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made.

1st Source may make other written or oral forward-looking statements from time to time. Readers are advised that various important factors could cause 1st Source’s actual results or circumstances for future periods to differ materially from those anticipated or projected in such forward-looking statements. Such factors, among others, include changes in laws, regulations or accounting principles generally accepted in the United States; 1st Source’s competitive position within its markets served; increasing consolidation within the banking industry; unforeseen changes in interest rates; unforeseen downturns in the local, regional or national economies or in the industries in which 1st Source has credit concentrations; and other risks discussed in 1st Source’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, which filings are available from the SEC. 1st Source undertakes no obligation to publicly update or revise any forward-looking statements.

NON-GAAP FINANCIAL MEASURES

In addition to the results presented in accordance with generally accepted accounting principles in the United States of America, this press release contains certain non-GAAP financial measures. 1st Source Corporation believes that providing non-GAAP financial measures provides investors with information useful to understanding our financial performance. Additionally, these non-GAAP measures are used by management for planning and forecasting purposes, including measures based on “tangible equity” which is “common shareholders’ equity” excluding intangible assets.

(charts attached)

1st SOURCE CORPORATION
2nd QUARTER 2016 FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in thousands, except per share data)
   
Three Months Ended Six Months Ended
June 30,   March 31,   June 30, June 30,   June 30,
    2016   2016   2015   2016   2015
AVERAGE BALANCES
Assets $ 5,343,630 $ 5,209,765 $ 4,956,246 $ 5,276,697 $ 4,888,724
Earning assets 4,986,635 4,863,774 4,634,091 4,925,204 4,573,117
Investments 804,856 794,849 791,569 799,853 790,073
Loans and leases 4,105,111 4,008,435 3,800,120 4,056,772 3,737,449
Deposits 4,300,402 4,153,273 3,927,077 4,226,838 3,872,320
Interest bearing liabilities 3,709,706 3,607,008 3,450,830 3,658,357 3,407,965
Common shareholders’ equity 659,092 649,597 632,300 654,344 627,873
 
INCOME STATEMENT DATA
Net interest income $ 42,293 $ 41,289 $ 41,665 $ 83,582 $ 81,101
Net interest income - FTE 42,753 41,750 42,072 84,503 81,926
Provision for loan and lease losses 2,049 975 811 3,024 1,168
Noninterest income 22,297 21,627 21,531 43,924 41,282
Noninterest expense 40,034 40,705 38,241 80,739 76,302
Net income 14,479 13,818 15,630 28,297 29,141
 
PER SHARE DATA*
Basic net income per common share $ 0.56 $ 0.53 $ 0.59 $ 1.08 $ 1.10
Diluted net income per common share 0.56 0.53 0.59 1.08 1.10
Common cash dividends declared 0.180 0.180 0.164 0.360 0.327
Book value per common share 25.59 25.14 24.11 25.59 24.11
Tangible book value per common share 22.32 21.87 20.87 22.32 20.87
Market value - High 34.83 33.50 31.75 34.83 31.75
Market value - Low 30.32 27.01 27.69 27.01 26.95
Basic weighted average common shares outstanding 25,853,537 25,923,530 26,212,999 25,888,534 26,235,511
Diluted weighted average common shares outstanding 25,853,537 25,923,530 26,212,999 25,888,534 26,235,511
 
KEY RATIOS
Return on average assets 1.09 % 1.07 % 1.26 % 1.08 % 1.20 %
Return on average common shareholders’ equity 8.84 8.56 9.91 8.70 9.36
Average common shareholders’ equity to average assets 12.33 12.47 12.76 12.40 12.84
End of period tangible common equity to tangible assets 10.90 10.96 11.09 10.90 11.09
Risk-based capital - Common Equity Tier 1 12.20 12.37 12.72 12.20 12.72
Risk-based capital - Tier 1 13.41 13.63 14.05 13.41 14.05
Risk-based capital - Total 14.73 14.94 15.36 14.73 15.36
Net interest margin 3.45 3.45 3.64 3.45 3.61
Efficiency: expense to revenue 58.76 62.28 57.74 60.50 59.85
Net charge offs to average loans and leases (0.01 ) (0.02 ) (0.07 ) (0.02 ) (0.02 )
Loan and lease loss reserve to loans and leases 2.20 2.21 2.25 2.20 2.25
Nonperforming assets to loans and leases 0.49 0.51 0.55 0.49 0.55
 
June 30, March 31, December 31, September 30, June 30,
    2016   2016   2015   2015   2015
END OF PERIOD BALANCES
Assets $ 5,379,938 $ 5,245,610 $ 5,187,916 $ 5,105,584 $ 5,014,023
Loans and leases 4,152,763 4,031,975 3,994,692 3,955,550 3,852,699
Deposits 4,325,084 4,225,148 4,139,186 4,019,156 3,962,585
Reserve for loan and lease losses 91,458 89,296 88,112 87,616 86,588
Intangible assets 84,386 84,530 84,676 84,822 84,967
Common shareholders’ equity 661,757 649,973 644,053 639,221 631,631
 
ASSET QUALITY
Loans and leases past due 90 days or more $ 275 $ 728 $ 122 $ 411 $ 278
Nonaccrual loans and leases 12,579 12,982 12,718 18,985 15,082
Other real estate 452 330 736 232 301
Former bank premises held for sale 515 626
Repossessions 7,619 7,201 6,927 6,602 5,433
Equipment owned under operating leases   107     113     121     146      
Total nonperforming assets   $ 21,032     $ 21,354     $ 20,624     $ 26,891     $ 21,720  
 

*Three and six months ended June 30, 2015 share and per share figures have been adjusted for a 10% stock dividend declared July 22, 2015 and issued on August 14, 2015.

1st SOURCE CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited - Dollars in thousands)
       
June 30, March 31, December 31, June 30,
    2016   2016   2015   2015

ASSETS

Cash and due from banks $ 58,944 $ 52,373 $ 65,171 $ 66,302
Federal funds sold and interest bearing deposits with other banks 14,297 32,854 14,550 11,396
Investment securities available-for-sale 814,258 801,950 791,727 786,471
Other investments 21,973 21,973 21,973 20,743
Trading account securities 211
Mortgages held for sale 15,924 11,999 9,825 14,782
Loans and leases, net of unearned discount:
Commercial and agricultural 759,175 749,024 744,749 719,972
Auto and light truck 457,586 428,455 425,236 446,731
Medium and heavy duty truck 273,674 272,917 278,254 250,045
Aircraft 822,842 783,844 778,012 751,665
Construction equipment 484,354 467,782 455,565 445,479
Commercial real estate 715,932 716,610 700,268 641,205
Residential real estate and home equity 482,979 466,450 464,129 454,730
Consumer   156,221     146,893     148,479     142,872  
Total loans and leases 4,152,763 4,031,975 3,994,692 3,852,699
Reserve for loan and lease losses   (91,458 )   (89,296 )   (88,112 )   (86,588 )
Net loans and leases 4,061,305 3,942,679 3,906,580 3,766,111
Equipment owned under operating leases, net 119,312 110,412 110,371 93,875
Net premises and equipment 54,506 54,139 53,191 50,931
Goodwill and intangible assets 84,386 84,530 84,676 84,967
Accrued income and other assets   135,033     132,701     129,852     118,234  
Total assets   $ 5,379,938     $ 5,245,610     $ 5,187,916     $ 5,014,023  
 

LIABILITIES

Deposits:
Noninterest bearing $ 944,626 $ 926,379 $ 902,364 $ 857,079
Interest-bearing deposits:
Interest-bearing demand 1,391,823 1,307,142 1,350,417 1,345,269
Savings 779,899 783,412 745,661 726,853
Time   1,208,736     1,208,215     1,140,744     1,033,384  
Total interest-bearing deposits   3,380,458     3,298,769     3,236,822     3,105,506  
Total deposits   4,325,084     4,225,148     4,139,186     3,962,585  
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase 161,826 169,820 130,662 122,658
Other short-term borrowings   44,150     12,094     102,567     139,529  
Total short-term borrowings   205,976     181,914     233,229     262,187  
Long-term debt and mandatorily redeemable securities 64,738 68,837 57,379 57,488
Subordinated notes 58,764 58,764 58,764 58,764
Accrued expenses and other liabilities   63,620     60,974     55,305     41,368  
Total liabilities   4,718,182     4,595,637     4,543,863     4,382,392  
 

SHAREHOLDERS’ EQUITY

Preferred stock; no par value

Authorized 10,000,000 shares; none issued or outstanding

Common stock; no par value

Authorized 40,000,000 shares; issued 28,205,674 shares at June 30, 2016, March 31, 2016 and December 31, 2015, respectively and 28,206,076 shares at June 30, 2015*

436,538 436,538 436,538 436,538
Retained earnings* 270,744 260,813 251,812 232,507
Cost of common stock in treasury (2,342,904, 2,356,417, 2,178,090, and 2,009,732 shares at June 30, 2016, March 31, 2016, December 31, 2015, and June 30, 2015, respectively)* (56,357 ) (56,677 ) (50,852 ) (45,706 )
Accumulated other comprehensive income   10,831     9,299     6,555     8,292  
Total shareholders’ equity   661,756     649,973     644,053     631,631  
Total liabilities and shareholders’ equity   $ 5,379,938     $ 5,245,610     $ 5,187,916     $ 5,014,023  
 

*June 30, 2015 share data, common stock, and retained earnings gives retrospective recognition to a 10% stock dividend declared on July 22, 2015 and issued on August 14, 2015.

1st SOURCE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - Dollars in thousands, except per share amounts)
   
Three Months Ended Six Months Ended
June 30,   March 31,   June 30, June 30,   June 30,
    2016   2016   2015   2016   2015
Interest income:
Loans and leases $ 43,891 $ 42,736 $ 42,583 $ 86,627 $ 82,187
Investment securities, taxable 3,040 3,080 2,648 6,120 5,652
Investment securities, tax-exempt 697 692 754 1,389 1,523
Other 309     291     229     600     484
Total interest income 47,937 46,799 46,214 94,736 89,846
Interest expense:
Deposits 3,790 3,771 2,838 7,561 5,397
Short-term borrowings 119 161 131 280 234
Subordinated notes 1,055 1,055 1,055 2,110 2,110
Long-term debt and mandatorily redeemable securities   680     523     525     1,203     1,004
Total interest expense   5,644     5,510     4,549     11,154     8,745
Net interest income 42,293 41,289 41,665 83,582 81,101
Provision for loan and lease losses   2,049     975     811     3,024     1,168
Net interest income after provision for loan and lease losses 40,244 40,314 40,854 80,558 79,933
Noninterest income:
Trust fees 5,108 4,623 5,247 9,731 9,804
Service charges on deposit accounts 2,276 2,107 2,367 4,383 4,564
Debit card 2,816 2,599 2,628 5,415 5,027
Mortgage banking 1,115 1,046 1,239 2,161 2,490
Insurance commissions 1,233 1,563 1,382 2,796 2,687
Equipment rental 6,517 6,073 5,342 12,590 10,421
(Losses) gains on investment securities available-for-sale (209 ) 10 4 (199 ) 4
Other   3,441     3,606     3,322     7,047     6,285
Total noninterest income   22,297     21,627     21,531     43,924     41,282
Noninterest expense:
Salaries and employee benefits 21,194 21,351 20,794 42,545 41,719
Net occupancy 2,307 2,501 2,345 4,808 4,806
Furniture and equipment 4,811 4,790 4,531 9,601 8,867
Depreciation - leased equipment 5,444 5,101 4,396 10,545 8,484
Professional fees 1,190 1,219 1,108 2,409 1,978
Supplies and communication 1,374 1,508 1,409 2,882 2,815
FDIC and other insurance 911 879 847 1,790 1,696
Business development and marketing 1,025 980 1,214 2,005 2,263
Loan and lease collection and repossession 385 427 (294 ) 812 69
Other   1,393     1,949     1,891     3,342     3,605
Total noninterest expense   40,034     40,705     38,241     80,739     76,302
Income before income taxes 22,507 21,236 24,144 43,743 44,913
Income tax expense   8,028     7,418     8,514     15,446     15,772
Net income   $ 14,479     $ 13,818     $ 15,630     $ 28,297     $ 29,141
Per common share*:
Basic net income per common share   $ 0.56     $ 0.53     $ 0.59     $ 1.08     $ 1.10
Diluted net income per common share   $ 0.56     $ 0.53     $ 0.59     $ 1.08     $ 1.10
Cash dividends   $ 0.180     $ 0.180     $ 0.164     $ 0.360     $ 0.327
Basic weighted average common shares outstanding   25,853,537     25,923,530     26,212,999     25,888,534     26,235,511
Diluted weighted average common shares outstanding   25,853,537     25,923,530     26,212,999     25,888,534     26,235,511
 

*The computation of the three and six months ended June 30, 2015 per common share data and shares outstanding gives retrospective recognition to a 10% stock dividend declared on July 22, 2015 and issued on August 14, 2015.

1st SOURCE CORPORATION
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY
INTEREST RATES AND INTEREST DIFFERENTIAL
(Unaudited - Dollars in thousands)
     
Three Months Ended
June 30, 2016 March 31, 2016 June 30, 2015
    Average

Balance

 

Interest
Income/
Expense

  Yield/

Rate

  Average

Balance

 

Interest
Income/
Expense

  Yield/

Rate

  Average

Balance

 

Interest
Income/
Expense

  Yield/

Rate

ASSETS

           
Investment securities available-for-sale:
Taxable $ 678,849 $ 3,040 1.80 % $ 671,989 $ 3,080 1.84 % $ 667,914 $ 2,648 1.59 %
Tax exempt 126,007 1,012 3.23 % 122,860 1,013 3.32 % 123,655 1,111 3.60 %
Mortgages held for sale 11,100 110 3.99 % 9,137 95 4.18 % 13,452 125 3.73 %
Loans and leases, net of unearned discount 4,105,111 43,926 4.30 % 4,008,435 42,781 4.29 % 3,800,120 42,508 4.49 %
Other investments   65,568     309     1.90 %   51,353     291     2.28 %   28,950     229     3.17 %
Total earning assets 4,986,635 48,397 3.90 % 4,863,774 47,260 3.91 % 4,634,091 46,621 4.04 %
Cash and due from banks 60,786 58,851 62,452
Reserve for loan and lease losses (90,107 ) (88,845 ) (86,047 )
Other assets   386,316             375,985             345,750          
Total assets   $ 5,343,630             $ 5,209,765             $ 4,956,246          
 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing deposits 3,380,208 3,790 0.45 % 3,254,262 3,771 0.47 % 3,096,622 2,838 0.37 %
Short-term borrowings 204,828 119 0.23 % 231,477 161 0.28 % 238,051 131 0.22 %
Subordinated notes 58,764 1,055 7.22 % 58,764 1,055 7.22 % 58,764 1,055 7.20 %
Long-term debt and mandatorily redeemable securities   65,906     680     4.15 %   62,505     523     3.37 %   57,393     525     3.67 %
Total interest-bearing liabilities 3,709,706 5,644 0.61 % 3,607,008 5,510 0.61 % 3,450,830 4,549 0.53 %
Noninterest-bearing deposits 920,194 899,011 830,455
Other liabilities 54,638 54,149 42,661
Shareholders’ equity   659,092             649,597             632,300          
Total liabilities and shareholders’ equity   $ 5,343,630             $ 5,209,765             $ 4,956,246          
Net interest income       $ 42,753             $ 41,750             $ 42,072      
Net interest margin on a tax equivalent basis           3.45 %           3.45 %           3.64 %
 
1st SOURCE CORPORATION
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY
INTEREST RATES AND INTEREST DIFFERENTIAL
(Unaudited - Dollars in thousands)
 
Six Months Ended
June 30, 2016   June 30, 2015
    Average

Balance

 

Interest
Income/
Expense

  Yield/

Rate

  Average

Balance

 

Interest
Income/
Expense

  Yield/

Rate

ASSETS

       
Investment securities available-for-sale:
Taxable $ 675,419 $ 6,120 1.82 % $ 666,752 $ 5,652 1.71 %
Tax exempt 124,434 2,025 3.27 % 123,321 2,245 3.67 %
Mortgages held for sale 10,119 205 4.07 % 13,231 251 3.83 %
Loans and leases, net of unearned discount 4,056,772 86,707 4.30 % 3,737,449 82,039 4.43 %
Other investments   58,460     600     2.06 %   32,364     484     3.02 %
Total earning assets 4,925,204 95,657 3.91 % 4,573,117 90,671 4.00 %
Cash and due from banks 59,818 62,000
Reserve for loan and lease losses (89,476 ) (85,920 )
Other assets   381,151             339,527          
Total assets   $ 5,276,697             $ 4,888,724          
 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing deposits 3,317,235 7,561 0.46 % 3,063,087 5,397 0.36 %
Short-term borrowings 218,153 280 0.26 % 229,050 234 0.21 %
Subordinated notes 58,764 2,110 7.22 % 58,764 2,110 7.24 %
Long-term debt and mandatorily redeemable securities   64,205     1,203     3.77 %   57,064     1,004     3.55 %
Total interest-bearing liabilities 3,658,357 11,154 0.61 % 3,407,965 8,745 0.52 %
Noninterest-bearing deposits 909,603 809,233
Other liabilities 54,393 43,653
Shareholders’ equity   654,344             627,873          
Total liabilities and shareholders’ equity   $ 5,276,697             $ 4,888,724          
Net interest income       $ 84,503             $ 81,926      
Net interest margin on a tax equivalent basis           3.45 %           3.61 %
 

The NASDAQ Stock Market National Market Symbol: “SRCE” (CUSIP #336901 10 3)
Please contact us at shareholder@1stsource.com

Contacts

1st Source Corporation
Andrea Short, 574-235-2000

Release Summary

1st Source Corporation Announces Second Quarter Earnings, Cash Dividend Declared

Contacts

1st Source Corporation
Andrea Short, 574-235-2000