Record First Quarter Earnings at 1st Source Corporation, Cash Dividend Declared

QUARTERLY HIGHLIGHTS

  • Net income improved to $16.21 million, 17.28% over the first quarter of 2016 and diluted net income per common share improved to $0.62 from the prior year's quarter of $0.53.
  • Return on average assets of 1.21% and return on average common shareholders' equity of 9.61%.
  • Net recoveries of $0.58 million and nonperforming assets to loans and leases of 0.63%.
  • Average loans and leases grew $178.80 million or 4.46% from the first quarter of 2016.
  • Average deposits grew $145.69 million or 3.51% from the first quarter of 2016.
  • Net interest income increased $2.44 million or 5.90% from the first quarter of 2016.
  • Noninterest income increased $1.68 million or 7.77% from the first quarter of 2016 (increased 6.66% excluding leased equipment depreciation).
  • Noninterest expenses increased slightly from the first quarter of 2016 (decreased slightly excluding leased equipment depreciation).

SOUTH BEND, Ind.--()--1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported a record high net income of $16.21 million for the first quarter of 2017, an increase of 17.28% compared to $13.82 million reported in the first quarter a year ago. The net income comparison was positively impacted by gains of $1.29 million on the sale of investment securities available-for-sale, mortgage backed security prepayments of $0.45 million and gains on the sale of fixed assets of $0.20 million. These positives were partially offset by the writedown of fixed assets of $0.41 million and a contribution expense of $0.50 million to the 1st Source Foundation.

Diluted net income per common share for the first quarter of 2017 was also a record high at $0.62, versus $0.53 in the first quarter of 2016.

At its April 2017 meeting, the Board of Directors approved an increase in cash dividend to $0.19 per common share. This is an increase of 5.56% over the $0.18 per common share in the prior quarter. The cash dividend is payable to shareholders of record on May 2, 2017 and will be paid on May 12, 2017.

According to Christopher J. Murphy III, Chairman, “1st Source Corporation had a solid first quarter. Credit quality remained stable while we managed an increase in our net interest margin. We have maintained noninterest expenses at a level similar to the same quarter a year ago while seeing an increase in both net interest income and noninterest income.”

“During the quarter, we razed our outdated facility on North Calumet Avenue in Valparaiso, Indiana, and broke ground on a new banking center at the same location. We look forward to completing construction and continuing to grow in this market for many years. We also announced the closing of three other facilities in markets well served by other nearby 1st Source banking centers. In addition, we announced the opening of our new Sarasota banking center to serve our clients who move to Florida and wish to continue their strong personal and business relationships with the Bank. This is especially true with our wealth advisory and private banking clients.”

“It is important to note that our first quarter was positively impacted from the sale of securities the Bank has held for quite some time and from favorable credit trends, including recoveries, when compared to the first quarter of 2016.”

“As always, we will continue to help our clients achieve security, build wealth and realize their dreams,” Mr. Murphy concluded.

FIRST QUARTER 2017 FINANCIAL RESULTS

Loans

Average loans and leases of $4.19 billion increased $178.80 million, or 4.46% in the first quarter of 2017 from the year ago quarter and have increased $37.32 million from the fourth quarter.

Deposits

Average deposits of $4.30 billion grew $145.69 million, or 3.51% for the quarter ended March 31, 2017 from the year ago quarter and have decreased $103.26 million, or 2.35% compared to the fourth quarter.

Net Interest Income and Net Interest Margin

First quarter 2017 net interest income of $43.73 million increased $2.44 million, or 5.90% from the first quarter a year ago and increased slightly from the fourth quarter.

First quarter 2017 net interest margin was 3.49%, an improvement of 8 basis points from the 3.41% for the same period in 2016 and increased 10 basis points from the 3.39% in the fourth quarter. First quarter 2017 net interest margin on a fully tax-equivalent basis was 3.53%, an increase of 8 basis points from the 3.45% for the same period in 2016 and improved 11 basis points from the 3.42% in the fourth quarter.

Noninterest Income

Noninterest income for the first quarter of 2017 was $23.31 million, up $1.68 million, or 7.77% from the year ago quarter, and up $0.95 million, or 4.25% from the fourth quarter. The growth in noninterest income during the first quarter from the same quarter a year ago was mainly due to gains on the sale of available-for-sale equity securities, higher equipment rental income related to an increase in the average equipment rental portfolio and increased trust and wealth advisory fees, which was offset by reduced partnership gains, resulting from the partial liquidation of an investment during the first quarter of 2016, lower monogram fund income and decreased customer swap fees. The rise in noninterest income from the fourth quarter was primarily as a result of the receipt of insurance contingent commissions, gains on the sale of available-for-sale equity securities, and higher equipment rental income related to an increase in the average equipment rental portfolio.

Noninterest Expense

Noninterest expense for the quarter ended March 31, 2017 was $41.12 million, up $0.41 million, or 1.02% over the comparable period a year ago and down $0.64 million, or 1.54% from the fourth quarter. Excluding depreciation on leased equipment, noninterest expenses were down slightly for the quarter ended March 31, 2017. The increase in noninterest expense from the same quarter a year ago was primarily due to charitable contributions, higher depreciation on leased equipment, and increased loan and lease collection and repossession expenses and the writedown of fixed assets, offset by reduced residential mortgage foreclosure expenses, lower FDIC insurance assessments, decreased professional fees and gains on the sale of fixed assets. The reduction in noninterest expense from the fourth quarter of 2016 was due to a decrease in group insurance claims, reduced professional consulting fees, gains on the sale of fixed assets and lower furniture and equipment expense, offset by the writedown of fixed assets and a loss on the sale of a repossessed asset.

Credit

The reserve for loan and lease losses as of March 31, 2017 was 2.13% of total loans and leases compared to 2.11% at December 31, 2016 and 2.21% at March 31, 2016. Net recoveries of $0.58 million were recorded for the first quarter of 2017 compared with net recoveries of $0.21 million in the same quarter a year ago and down from the $1.10 million of net charge-offs in the fourth quarter.

The ratio of nonperforming assets to loans and leases was 0.63% as of March 31, 2017, comparable to the 0.51% on March 31, 2016 and the 0.70% on December 31, 2016.

Capital

As of March 31, 2017, the common equity-to-assets ratio was 12.47%, compared to 12.26% at December 31, 2016 and 12.39% a year ago. The tangible common equity-to-tangible assets ratio was 11.11% at March 31, 2017 and 10.89% at December 31, 2016 compared to 10.96% a year earlier. The Common Equity Tier 1 ratio, calculated under banking regulatory guidelines, was 12.69% at March 31, 2017 compared to 12.59% at December 31, 2016 and 12.37% a year ago.

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 82 banking centers, 23 1st Source Bank Specialty Finance Group locations nationwide, eight Wealth Advisory Services locations and ten 1st Source Insurance offices.

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

The accounting and reporting policies of 1st Source conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures are used by management to evaluate and measure the Company’s performance. Although these non-GAAP financial measures are frequently used by investors to evaluate a financial institution, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. These include taxable-equivalent net interest income (including its individual components), net interest margin (including its individual components), the efficiency ratio, tangible common equity-to-tangible assets ratio and tangible book value per common share. Management believes that these measures provide users of the Company’s financial information a more meaningful view of the performance of the interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures differently.

Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent (“FTE”) basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses and lease depreciation), measures how much it costs to produce one dollar of revenue. Securities gains or losses and lease depreciation are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity-to-tangible assets ratio and tangible book value per common share as useful measurements of the Company’s equity.

See the table marked “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of certain non-GAAP financial measures used by the Company with their most closely related GAAP measures.

(charts attached)

         
1st SOURCE CORPORATION
1st QUARTER 2017 FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in thousands, except per share data)
Three Months Ended
March 31, December 31, March 31,
    2017   2016   2016        
AVERAGE BALANCES
Assets $ 5,437,247 $ 5,461,990 $ 5,209,765
Earning assets 5,075,410 5,097,192 4,863,774
Investments 839,283 828,955 794,849
Loans and leases 4,187,231 4,149,913 4,008,435
Deposits 4,298,964 4,402,225 4,153,273
Interest bearing liabilities 3,747,752 3,729,397 3,607,008
Common shareholders’ equity 683,647 675,915 649,597
 
INCOME STATEMENT DATA
Net interest income $ 43,727 $ 43,383 $ 41,289

Net interest income - FTE(1)

44,188 43,837 41,750
Provision for loan and lease losses 1,000 742 975
Noninterest income 23,307 22,356 21,627
Noninterest expense 41,119 41,761 40,705
Net income 16,206 15,225 13,818
 
PER SHARE DATA
Basic net income per common share $ 0.62 $ 0.58 $ 0.53
Diluted net income per common share 0.62 0.58 0.53
Common cash dividends declared 0.18 0.18 0.18
Book value per common share 26.46 26.00 25.14
Tangible book value per common share(1) 23.22 22.75 21.87
Market value - High 49.11 45.61 33.50
Market value - Low 42.15 33.27 27.01
Basic weighted average common shares outstanding 25,903,397 25,873,552 25,923,530
Diluted weighted average common shares outstanding 25,903,397 25,873,552 25,923,530
 
KEY RATIOS
Return on average assets 1.21 % 1.11 % 1.07 %
Return on average common shareholders’ equity 9.61 8.96 8.56
Average common shareholders’ equity to average assets 12.57 12.37 12.47
End of period tangible common equity to tangible assets(1) 11.11 10.89 10.96
Risk-based capital - Common Equity Tier 1(2) 12.69 12.59 12.37
Risk-based capital - Tier 1(2) 13.88 13.80 13.63
Risk-based capital - Total(2) 15.18 15.12 14.94
Net interest margin 3.49 3.39 3.41
Net interest margin - FTE(1) 3.53 3.42 3.45
Efficiency ratio: expense to revenue 61.34 63.53 64.70
Efficiency ratio: expense to revenue - adjusted(1) 57.81 59.87 62.28
Net charge offs to average loans and leases (0.06 ) 0.11 (0.02 )
Loan and lease loss reserve to loans and leases 2.13 2.11 2.21
Nonperforming assets to loans and leases 0.63 0.70 0.51
 
March 31, December 31, September 30, June 30, March 31,
    2017   2016   2016   2016   2016
END OF PERIOD BALANCES
Assets $ 5,501,526 $ 5,486,268 $ 5,447,911 $ 5,379,938 $ 5,245,610
Loans and leases 4,234,862 4,188,071 4,179,417 4,152,763 4,031,975
Deposits 4,336,976 4,333,760 4,377,038 4,325,084 4,225,148
Reserve for loan and lease losses 90,118 88,543 88,897 91,458 89,296
Goodwill and intangible assets 83,960 84,102 84,244 84,386 84,530
Common shareholders’ equity 685,934 672,650 670,259 661,756 649,973
 
ASSET QUALITY
Loans and leases past due 90 days or more $ 344 $ 416 $ 611 $ 275 $ 728
Nonaccrual loans and leases 18,090 19,907 19,922 12,579 12,982
Other real estate 916 704 551 452 330
Repossessions 8,121 9,373 8,089 7,619 7,201
Equipment owned under operating leases   27     34     43     107     113
Total nonperforming assets   $ 27,498     $ 30,434     $ 29,216     $ 21,032     $ 21,354
 
(1)   See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio.
(2) Calculated under banking regulatory guidelines.
 
       
1st SOURCE CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited - Dollars in thousands)
March 31, December 31, September 30, March 31,
    2017   2016   2016   2016

ASSETS

Cash and due from banks $ 58,429 $ 58,578 $ 65,724 $ 52,373
Federal funds sold and interest bearing deposits with other banks 33,687 49,726 30,100 32,854
Investment securities available-for-sale 836,682 850,467 828,615 801,950
Other investments 22,458 22,458 22,458 21,973
Mortgages held for sale 8,409 15,849 19,986 11,999
Loans and leases, net of unearned discount:
Commercial and agricultural 843,757 812,264 786,167 749,024
Auto and light truck 430,489 411,764 400,809 428,455
Medium and heavy duty truck 290,167 294,790 271,478 272,917
Aircraft 783,523 802,414 836,977 783,844
Construction equipment 512,545 495,925 498,086 467,782
Commercial real estate 723,623 719,170 744,972 716,610
Residential real estate and home equity 522,772 521,931 512,597 491,425
Consumer   127,986     129,813     128,331     121,918  
Total loans and leases 4,234,862 4,188,071 4,179,417 4,031,975
Reserve for loan and lease losses   (90,118 )   (88,543 )   (88,897 )   (89,296 )
Net loans and leases 4,144,744 4,099,528 4,090,520 3,942,679
Equipment owned under operating leases, net 127,323 118,793 117,883 110,412
Net premises and equipment 55,167 56,708 54,654 54,139
Goodwill and intangible assets 83,960 84,102 84,244 84,530
Accrued income and other assets   130,667     130,059     133,727     132,701  
Total assets   $ 5,501,526     $ 5,486,268     $ 5,447,911     $ 5,245,610  
 

LIABILITIES

Deposits:
Noninterest-bearing demand $ 966,903 $ 991,256 $ 992,776 $ 926,379
Interest-bearing deposits:
Interest-bearing demand 1,418,395 1,471,526 1,417,692 1,307,142
Savings 839,257 814,326 799,891 783,412
Time   1,112,421     1,056,652     1,166,679     1,208,215  
Total interest-bearing deposits   3,370,073     3,342,504     3,384,262     3,298,769  
Total deposits   4,336,976     4,333,760     4,377,038     4,225,148  
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase 176,079 162,913 167,029 169,820
Other short-term borrowings   103,666     129,030     48,978     12,094  
Total short-term borrowings   279,745     291,943     216,007     181,914  
Long-term debt and mandatorily redeemable securities 85,479 74,308 64,760 68,837
Subordinated notes 58,764 58,764 58,764 58,764
Accrued expenses and other liabilities   54,628     54,843     61,083     60,974  
Total liabilities   4,815,592     4,813,618     4,777,652     4,595,637  
 

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 March 31, 2017, December 31, 2016, September 30, 2016, and March 31, 2016, respectively

436,538 436,538 436,538 436,538
Retained earnings 303,009 290,824 280,335 260,813
Cost of common stock in treasury (2,282,044, 2,329,909, 2,338,581, and 2,356,417 shares at March 31, 2017, December 31, 2016, September 30, 2016, and March 31, 2016, respectively) (54,940 ) (56,056 ) (56,262 ) (56,677 )
Accumulated other comprehensive income   1,327     1,344     9,648     9,299  
Total shareholders’ equity   685,934     672,650     670,259     649,973  
Total liabilities and shareholders’ equity   $ 5,501,526     $ 5,486,268     $ 5,447,911     $ 5,245,610  
 
     
1st SOURCE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - Dollars in thousands, except per share amounts)
Three Months Ended
March 31, December 31, March 31,
    2017   2016   2016
Interest income:
Loans and leases $ 44,884 $ 44,407 $ 42,736
Investment securities, taxable 3,514 3,273 3,080
Investment securities, tax-exempt 683 679 692
Other   291     365     291
Total interest income   49,372     48,724     46,799
Interest expense:
Deposits 3,734 3,827 3,771
Short-term borrowings 227 95 161
Subordinated notes 1,055 1,055 1,055
Long-term debt and mandatorily redeemable securities   629     364     523
Total interest expense   5,645     5,341     5,510
Net interest income 43,727 43,383 41,289
Provision for loan and lease losses   1,000     742     975
Net interest income after provision for loan and lease losses   42,727     42,641     40,314
Noninterest income:
Trust and wealth advisory 5,001 4,834 4,623
Service charges on deposit accounts 2,239 2,304 2,107
Debit card 2,750 2,727 2,599
Mortgage banking 947 1,001 1,046
Insurance commissions 1,767 1,367 1,563
Equipment rental 6,832 6,616 6,073
Gains on investment securities available-for-sale 1,285 1,006 10
Other   2,486     2,501     3,606
Total noninterest income   23,307     22,356     21,627
Noninterest expense:
Salaries and employee benefits 21,345 22,156 21,351
Net occupancy 2,594 2,443 2,501
Furniture and equipment 4,793 5,001 4,790
Depreciation - leased equipment 5,680 5,563 5,101
Professional fees 1,077 1,508 1,219
Supplies and communication 1,250 1,106 1,508
FDIC and other insurance 623 710 879
Business development and marketing 1,652 1,668 980
Loan and lease collection and repossession 636 464 427
Other   1,469     1,142     1,949
Total noninterest expense   41,119     41,761     40,705
Income before income taxes 24,915 23,236 21,236
Income tax expense   8,709     8,011     7,418
Net income   $ 16,206     $ 15,225     $ 13,818
Per common share:
Basic net income per common share   $ 0.62     $ 0.58     $ 0.53
Diluted net income per common share   $ 0.62     $ 0.58     $ 0.53
Cash dividends   $ 0.18     $ 0.18     $ 0.18
Basic weighted average common shares outstanding   25,903,397     25,873,552     25,923,530
Diluted weighted average common shares outstanding   25,903,397     25,873,552     25,923,530
 
 
1st SOURCE CORPORATION
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY
INTEREST RATES AND INTEREST DIFFERENTIAL
(Unaudited - Dollars in thousands)
Three Months Ended
March 31, 2017   December 31, 2016   March 31, 2016
 

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 $ 708,249 $ 3,514 2.01 % $ 696,110 $ 3,273 1.87 % $ 671,989 $ 3,080 1.84 %
Tax exempt(1) 131,034 994 3.08 % 132,845 983 2.94 % 122,860 1,013 3.32 %
Mortgages held for sale 8,155 81 4.03 % 14,615 128 3.48 % 9,137 95 4.18 %
Loans and leases, net of unearned discount(1) 4,187,231 44,953 4.35 % 4,149,913 44,429 4.26 % 4,008,435 42,781 4.29 %
Other investments 40,741     291     2.90 %   103,709     365     1.40 %   51,353     291     2.28 %
Total earning assets(1) 5,075,410 49,833 3.98 % 5,097,192 49,178 3.84 % 4,863,774 47,260 3.91 %
Cash and due from banks 59,967 62,689 58,851
Reserve for loan and lease losses (90,222 ) (89,618 ) (88,845 )
Other assets 392,092             391,727             375,985          
Total assets $ 5,437,247             $ 5,461,990             $ 5,209,765          
 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing deposits 3,345,670 3,734 0.45 % 3,406,478 3,827 0.45 % 3,254,262 3,771 0.47 %
Short-term borrowings 267,823 227 0.34 % 189,895 95 0.20 % 231,477 161 0.28 %
Subordinated notes 58,764 1,055 7.28 % 58,764 1,055 7.14 % 58,764 1,055 7.22 %
Long-term debt and mandatorily redeemable securities 75,495     629     3.38 %   74,260     364     1.95 %   62,505     523     3.37 %
Total interest-bearing liabilities 3,747,752 5,645 0.61 % 3,729,397 5,341 0.57 % 3,607,008 5,510 0.61 %
Noninterest-bearing deposits 953,294 995,747 899,011
Other liabilities 52,554 60,931 54,149
Shareholders’ equity 683,647             675,915             649,597          
Total liabilities and shareholders’ equity $ 5,437,247             $ 5,461,990             $ 5,209,765          
Less: Fully tax-equivalent adjustments (461 ) (454 ) (461 )
Net interest income/margin (GAAP-derived)(1)     $ 43,727     3.49 %       $ 43,383     3.39 %       $ 41,289     3.41 %
Fully tax-equivalent adjustments 461 454 461
Net interest income/margin - FTE(1)     $ 44,188     3.53 %       $ 43,837     3.42 %       $ 41,750     3.45 %
(1)   See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio.
 
 
1st SOURCE CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited - Dollars in thousands, except per share data)
     
Three Months Ended
March 31, December 31, March 31,
      2017   2016   2016

Calculation of Net Interest Margin

(A) Interest income (GAAP) $ 49,372 $ 48,724 $ 46,799
Fully tax-equivalent adjustments:
(B) - Loans and leases 150 150 140
(C) - Tax exempt investment securities   311     304     321  
(D) Interest income - FTE (A+B+C) 49,833 49,178 47,260
(E) Interest expense (GAAP) 5,645 5,341 5,510
(F) Net interest income (GAAP) (A-E)   43,727     43,383     41,289  
(G) Net interest income - FTE (D-E)   44,188     43,837     41,750  
(H) Annualization factor 4.056 3.978 4.022
(I) Total earning assets $ 5,075,410 $ 5,097,192 $ 4,863,774
Net interest margin (GAAP-derived) (F*H)/I 3.49 % 3.39 % 3.41 %
Net interest margin - FTE (G*H)/I 3.53 % 3.42 % 3.45 %
 

Calculation of Efficiency Ratio

(F) Net interest income (GAAP) $ 43,727 $ 43,383 $ 41,289
(G) Net interest income - FTE 44,188 43,837 41,750
(J) Plus: noninterest income (GAAP) 23,307 22,356 21,627
(K) Less: gains/losses on investment securities and partnership investments (1,314 ) (974 ) (1,109 )
(L) Less: depreciation - leased equipment   (5,680 )   (5,563 )   (5,101 )
(M) Total net revenue (GAAP) (F+J)   67,034     65,739     62,916  
(N) Total net revenue - adjusted (G+J–K–L)   60,501     59,656     57,167  
(O) Noninterest expense (GAAP) 41,119 41,761 40,705
(L) Less:depreciation - leased equipment (5,680 ) (5,563 ) (5,101 )
(P) Less: contribution expense limited to gains on investment securities in (K)   (462 )   (484 )    
(Q) Noninterest expense - adjusted (O–L–P) 34,977 35,714 35,604
Efficiency ratio (GAAP-derived) (O/M) 61.34 % 63.53 % 64.70 %
Efficiency ratio - adjusted (Q/N) 57.81 % 59.87 % 62.28 %
 
End of Period
March 31, December 31, March 31,
      2017   2016   2016

Calculation of Tangible Common Equity-to-Tangible Assets Ratio

(R) Total common shareholders’ equity (GAAP) $ 685,934 $ 672,650 $ 649,973
(S) Less: goodwill and intangible assets   (83,960 )   (84,102 )   (84,530 )
(T) Total tangible common shareholders’ equity (R–S)   $ 601,974     $ 588,548     $ 565,443  
(U) Total assets (GAAP) 5,501,526 5,486,268 5,245,610
(S) Less: goodwill and intangible assets   (83,960 )   (84,102 )   (84,530 )
(V) Total tangible assets (U–S)   $ 5,417,566     $ 5,402,166     $ 5,161,080  
Common equity-to-assets ratio (GAAP-derived) (R/U) 12.47 % 12.26 % 12.39 %
Tangible common equity-to-tangible assets ratio (T/V) 11.11 % 10.89 % 10.96 %
 

Calculation of Tangible Book Value per Common Share

(R) Total common shareholders’ equity (GAAP) $ 685,934 $ 672,650 $ 649,973
(W) Actual common shares outstanding   25,923,630     25,875,765     25,849,257  
Book value per common share (GAAP-derived) (R/W)*1000 $ 26.46 $ 26.00 $ 25.14
Tangible common book value per share (T/W)*1000 $ 23.22 $ 22.75 $ 21.87
 

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

Record First Quarter Earnings at 1st Source Corporation. Cash Dividend Declared

Contacts

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