1st Source Corporation Reports Third Quarter Results, Cash Dividend Declared

QUARTERLY HIGHLIGHTS

  • Net income was $20.06 million, up 8.41% from the second quarter and down 17.92% from the third quarter of 2019. Diluted net income per common share was $0.78, up compared to the $0.72 in the previous quarter and down from the prior year’s third quarter of $0.95.
  • Cash dividend of $0.28 per common share approved, equal to the second quarter and down 3.45% from the $0.29 per common share declared a year ago.
  • Return on average assets of 1.10% and return on average common shareholders’ equity of 9.10% compared to 1.46% and 11.98%, respectively in the third quarter of 2019.
  • Average loans and leases grew $104.46 million or 1.88% from the previous quarter and $578.26 million or 11.36% from the third quarter of 2019. Excluding the Paycheck Protection Program, average loans and leases declined slightly from the previous quarter and the third quarter of 2019.
  • Average deposits increased $78.86 million or 1.36% from the previous quarter and grew $526.04 million or 9.81% from the third quarter of 2019.
  • Net charge-offs were $3.77 million and nonperforming assets to loans and leases were 1.33% compared to net recoveries of $0.31 million and 0.34%, respectively in the third quarter of 2019.
  • Provision was made to the loan and lease losses reserve of $9.30 million compared to $3.72 million in the third quarter of 2019.
  • Net interest income decreased $2.33 million, or 4.07% from the third quarter of 2019.
  • Noninterest income increased $2.28 million, or 8.83% from the third quarter of 2019. Excluding leased equipment depreciation, noninterest income increased 19.32%.
  • Noninterest expenses decreased $0.06 million, down 0.13% from the third quarter of 2019. Excluding leased equipment depreciation, noninterest expense increased 3.52%.

SOUTH BEND, Ind.--()--1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported net income of $20.06 million for the third quarter of 2020, up 8.41% from the $18.50 million reported in the second quarter of 2020 and down 17.92% from the $24.44 million reported in the third quarter a year ago, bringing the 2020 year-to-date net income to $54.97 million compared to $70.02 million in 2019, a decrease of 21.49%. The year-to-date net income comparison was negatively impacted by an increased provision for loan and lease losses of $18.15 million primarily due to sizeable impairments in a few accounts, the negative economic impact on our clients from COVID-19 and higher special attention loan balances in the first nine months of 2020. Additionally, net interest income decreased $4.86 million due to lower loan and investment rates resulting from the Federal Reserve’s actions to lower interest rates and stimulate the economy in response to the economic effects of COVID-19. These negatives were offset by improved noninterest income driven primarily by higher mortgage financing income. Non-recurring 2020 items which added to net income included $0.55 million in FDIC insurance premium credits received, bank owned life insurance claims of $0.30 million and a trust recovery of $0.17 million. These additions to income were offset by $1.40 million of negative valuation adjustments on repossessed assets and $0.81 million in mortgage servicing rights impairment charges.

Diluted net income per common share for the third quarter of 2020 was up 8.33% to $0.78 versus $0.72 for the second quarter of 2020 and was down 17.89% versus $0.95 in the third quarter of 2019. Diluted net income per common share for the first nine months of 2020 was $2.14 compared to $2.72 a year earlier, a 21.32% decrease.

At its October 2020 meeting, the Board of Directors approved a cash dividend of $0.28 per common share, equal to that declared in the previous quarter and down 3.45% from the $0.29 per common share declared a year ago. The cash dividend is payable to shareholders of record on November 3, 2020 and will be paid on November 13, 2020.

Christopher J. Murphy III, Chairman and Chief Executive Officer, commented, “The third quarter continued to provide operating and financial challenges but I am pleased with our overall results and our efforts to work with clients through these difficult times. Although our net income is down from the third quarter of 2019, we did see improvement from the second quarter 2020 while also providing $9.30 million to the reserve for loan and lease losses as we continue to work through the immediate and longer term negative impacts on our clients from the coronavirus pandemic. Continuing a positive trend from the first and second quarters, our residential mortgage loan business increased its production volumes and profitability enjoying the second highest quarterly volume in 10 years due to record low long term interest rates.

“During the quarter, we began working with our Paycheck Protection Program (PPP) clients to submit loan forgiveness applications to the Small Business Administration (SBA) and were pleased with the SBA’s announcement of a streamlined loan forgiveness application for loans $50,000 or less. Of the 3,540 PPP loans we originated, 1,972 loans were for $50,000 or less. Our focus now is to help all of our small business clients successfully complete this forgiveness process. As of mid-October, we had submitted over $100 million in PPP loan forgiveness requests to the SBA. While uncertainty remains concerning the forgiveness process, we anticipate the process to be finished or nearly finished by the end of the second quarter of 2021.

“Last quarter, we reported on COVID-19 related loan modifications across our portfolios. That number peaked at approximately $1 billion and by the close of the quarter over 80% had completed their modification term and did not require further deferral. Clients in certain industries in our loan portfolios though have been negatively impacted more than others. These include transportation (particularly auto rental and charter bus) clients and hotel industry clients. For those, further deferrals were required as these industries slowly return back to more normal operations. We will continue to take a long-term view of working with our clients who need further deferral extensions where appropriate.

“During the third quarter, we saw an increase in nonaccrual loans and leases predominately from our bus segment. The majority of the remaining nonaccrual loans are tied to four customer relationships in our auto and light truck and construction equipment portfolios.

“Throughout the pandemic, our focus has remained on keeping our clients, our colleagues, and families safe so we can deliver the highest level of service. In the spring, we made the decision to provide by-appointment client service in our banking center lobbies to ensure everyone’s safety, both clients and colleagues, allowing us to screen visitors for symptoms, and conduct swift and accurate contract tracing if needed. This approach has served us well and, with a few exceptions, we have made the decision to keep this approach in place for the time being. Our drive-up teller lanes are serving clients well and our ATMs, Online Banking, Mobile App and Telephone Banking are accessible 24/7. We have opened our supermarket banking centers and, in some locations where virus levels are low, we have opened banking facilities where we do not have drive-up teller lanes to conduct transactions at a distance.

“As mentioned earlier this year, we have a dedicated executive pandemic response team that meets regularly and is closely monitoring developments and providing guidance for additional precautions and initiatives. This group will continue to review and analyze data from local health departments to make the best decisions possible for the health and safety of our team members, clients and communities.” Mr. Murphy concluded.

THIRD QUARTER 2020 FINANCIAL RESULTS

Loans

Average loans and leases of $5.67 billion increased $578.26 million, up 11.36% in the third quarter of 2020 from the year ago quarter and have increased $104.46 million, up 1.88% from the second quarter. Year-to-date average loans and leases of $5.45 billion increased $460.72 million, up 9.24% from the first nine months of 2019. Loan growth is primarily from PPP originations when compared to 2019.

Deposits

Average deposits of $5.89 billion grew $526.04 million for the quarter ended September 30, 2020, up 9.81% from the year ago quarter and have increased $78.86 million, or 1.36% from the second quarter. Average deposits for the first nine months of 2020 were $5.66 billion, an increase of $427.97 million, up 8.18% from the same period a year ago. Deposit growth is primarily from PPP loan fundings and increased consumer deposit levels compared to 2019.

Net Interest Income and Net Interest Margin

Third quarter 2020 net interest income of $54.87 million decreased $2.33 million, or 4.07% from the third quarter a year ago and increased $0.87 million, or 1.61% from the previous quarter. For the first nine months of 2020, tax-equivalent net interest income was $164.13 million, a decrease of $4.97 million, or 2.94% compared to the same period a year ago.

Third quarter 2020 net interest margin was 3.19%, a decrease of 48 basis points from the 3.67% for the same period in 2019 and decreased four basis points from the previous quarter. Third quarter 2020 net interest margin on a fully tax-equivalent basis was 3.20%, a decrease of 48 basis points from the 3.68% for the same period in 2019 and was lower by four basis points compared to the previous quarter. The margin continues to experience pressure from the numerous Federal Reserve interest rate decreases during the second half of 2019 and the first three months of 2020. Additionally, PPP loans had a negative impact on the net interest margin of six basis points for the quarter.

Net interest margin for the first nine months of 2020 was 3.32%, a decrease of 40 basis points from the 3.72% for the same period in 2019. Net interest margin on a fully-taxable-equivalent basis for the first nine months of 2020 was 3.33%, a decrease of 41 basis points from the 3.74% for the first nine months of 2019. PPP loans had a negative impact of five basis points on the year-to-date net interest margin.

Noninterest Income

Third quarter 2020 noninterest income of $28.04 million increased $2.28 million, or 8.83% from the third quarter a year ago and increased $2.80 million, or 11.09% from the second quarter of 2020. For the first nine months of 2020, noninterest income was $77.90 million, an increase of $2.35 million, or 3.11% from the same period a year ago.

The growth in noninterest income during the third quarter and first nine months of 2020 compared to a year ago was mainly from improved mortgage financing income driven by gains on a higher volume of loan sales offset by lower service charges on deposit accounts due to fewer overdraft and non-sufficient fund transactions and less equipment rental income due to a reduction in the size of the average equipment rental portfolio. Additionally, we recognized $0.81 million of impairment charges on our mortgage servicing rights during 2020 as prepayment speeds accelerated.

The increase in noninterest income from the second quarter of 2020 was primarily the result of improved mortgage banking income driven by higher margins on loan sales, increased debit card income, and higher service charges on deposit accounts offset by decreased customer swap fees, lower equipment rental income due to a reduction in the size of the average equipment rental portfolio, and reduced trust and wealth advisory fees as a result of seasonal tax activity in the second quarter.

Noninterest Expense

Third quarter 2020 noninterest expense of $47.04 million decreased $0.06 million, or 0.13% from the third quarter a year ago and increased $2.22 million, or 4.95% from the prior quarter. Excluding depreciation on leased equipment, noninterest expenses were up 3.52% from the third quarter a year ago and up 6.72% from the prior quarter. For the first nine months of 2020, noninterest expense was $138.40 million, a decrease of $1.26 million, down 0.90% compared to the same period a year ago.

The increase in noninterest expense from the prior quarter was primarily the result of lower deferred salary expense on PPP loan originations, negative valuation adjustments on repossessed assets and higher professional consulting fees. These increases were offset by lower leased equipment depreciation from a reduction in the average equipment rental portfolio and a decline in general collection and repossession costs.

Credit

The reserve for loan and lease losses as of September 30, 2020 was 2.43% of total loans and leases compared to 2.31% at June 30, 2020 and 2.14% at September 30, 2019. The reserve calculation includes PPP loans which are guaranteed by the SBA. Excluding these loans from the calculation results in a reserve of 2.69% at September 30, 2020 compared to 2.54% at June 30, 2020. Net charge-offs of $3.77 million were recorded for the third quarter of 2020 compared with net recoveries of $0.31 million in the same quarter a year ago and $0.11 million of net recoveries in the prior quarter.

The provision for loan and lease losses was $9.30 million for the third quarter of 2020, an increase of $5.59 million compared with the same period in 2019 and a decrease of $1.07 million from the second quarter of 2020. The ratio of nonperforming assets to loans and leases was 1.33% as of September 30, 2020, compared to 1.20% on June 30, 2020 and 0.34% on September 30, 2019. Excluding PPP loans, the ratio of non-performing assets to loans and leases was 1.48% at September 30, 2020 and 1.33% at June 30, 2020.

Capital

As of September 30, 2020, the common equity-to-assets ratio was 12.04%, compared to 11.74% at June 30, 2020 and 12.15% a year ago. The tangible common equity-to-tangible assets ratio was 11.01% at September 30, 2020 compared to 10.73% at June 30, 2020 and 11.04% a year earlier. The Common Equity Tier 1 ratio, calculated under banking regulatory guidelines, was 12.92% at September 30, 2020 compared to 12.76% at June 30, 2020 and 12.26% a year ago. All of the September 30, 2020 calculations except the regulatory capital ratios are impacted by the inclusion of PPP loan balances at the close of the quarter. There were no shares repurchased for treasury during 2020.

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 its clients, individuals, businesses and 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 79 banking centers, 18 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.

Category: Earnings

(charts attached)

1st SOURCE CORPORATION

 

 

 

 

 

 

3rd QUARTER 2020 FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

(Unaudited - Dollars in thousands, except per share data)

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

June 30,

September 30,

 

September 30,

September 30,

 

2020

2020

2019

 

2020

2019

AVERAGE BALANCES

 

 

 

 

 

 

Assets

$

7,281,542

 

$

7,185,406

 

$

6,620,880

 

 

$

7,026,956

 

$

6,467,547

 

Earning assets

6,841,720

 

6,727,011

 

6,190,264

 

 

6,584,451

 

6,052,686

 

Investments

1,057,780

 

1,045,310

 

1,024,250

 

 

1,044,625

 

1,004,463

 

Loans and leases

5,669,615

 

5,565,160

 

5,091,358

 

 

5,445,213

 

4,984,498

 

Deposits

5,889,434

 

5,810,578

 

5,363,391

 

 

5,658,309

 

5,230,335

 

Interest bearing liabilities

4,553,503

 

4,580,419

 

4,493,376

 

 

4,516,627

 

4,426,489

 

Common shareholders’ equity

876,992

 

862,209

 

809,279

 

 

861,366

 

791,438

 

Total equity

913,926

 

891,606

 

819,734

 

 

891,129

 

796,767

 

INCOME STATEMENT DATA

 

 

 

 

 

 

Net interest income

$

54,868

 

$

54,001

 

$

57,195

 

 

$

163,713

 

$

168,570

 

Net interest income - FTE(1)

54,996

 

54,138

 

57,362

 

 

164,129

 

169,096

 

Provision for loan and lease losses

9,303

 

10,375

 

3,717

 

 

31,031

 

12,882

 

Noninterest income

28,041

 

25,241

 

25,765

 

 

77,904

 

75,553

 

Noninterest expense

47,043

 

44,825

 

47,106

 

 

138,403

 

139,663

 

Net income

20,054

 

18,526

 

24,448

 

 

54,998

 

70,061

 

Net income available to common shareholders

20,058

 

18,502

 

24,438

 

 

54,973

 

70,019

 

PER SHARE DATA

 

 

 

 

 

 

Basic net income per common share

$

0.78

 

$

0.72

 

$

0.95

 

 

$

2.14

 

$

2.72

 

Diluted net income per common share

0.78

 

0.72

 

0.95

 

 

2.14

 

2.72

 

Common cash dividends declared

0.28

 

0.28

 

0.27

 

 

0.85

 

0.81

 

Book value per common share(2)

34.35

 

33.85

 

31.88

 

 

34.35

 

31.88

 

Tangible book value per common share(1)

31.06

 

30.57

 

28.59

 

 

31.06

 

28.59

 

Market value - High

38.26

 

38.70

 

48.31

 

 

52.16

 

50.15

 

Market value - Low

28.72

 

26.72

 

42.31

 

 

26.07

 

39.11

 

Basic weighted average common shares outstanding

25,552,374

 

25,540,855

 

25,520,035

 

 

25,538,910

 

25,630,771

 

Diluted weighted average common shares outstanding

25,552,374

 

25,540,855

 

25,520,035

 

 

25,538,910

 

25,630,771

 

KEY RATIOS

 

 

 

 

 

 

Return on average assets

1.10

%

1.04

%

1.46

%

 

1.05

%

1.45

%

Return on average common shareholders’ equity

9.10

 

8.63

 

11.98

 

 

8.52

 

11.83

 

Average common shareholders’ equity to average assets

12.04

 

12.00

 

12.22

 

 

12.26

 

12.24

 

End of period tangible common equity to tangible assets(1)

11.01

 

10.73

 

11.04

 

 

11.01

 

11.04

 

Risk-based capital - Common Equity Tier 1(3)

12.92

 

12.76

 

12.26

 

 

12.92

 

12.26

 

Risk-based capital - Tier 1(3)

14.48

 

14.32

 

13.33

 

 

14.48

 

13.33

 

Risk-based capital - Total(3)

15.74

 

15.58

 

14.59

 

 

15.74

 

14.59

 

Net interest margin

3.19

 

3.23

 

3.67

 

 

3.32

 

3.72

 

Net interest margin - FTE(1)

3.20

 

3.24

 

3.68

 

 

3.33

 

3.74

 

Efficiency ratio: expense to revenue

56.74

 

56.57

 

56.78

 

 

57.28

 

57.21

 

Efficiency ratio: expense to revenue - adjusted(1)

54.18

 

53.63

 

53.44

 

 

54.53

 

53.57

 

Net charge offs (recoveries) to average loans and leases

0.26

 

(0.01)

 

(0.02)

 

 

0.13

 

0.12

 

Loan and lease loss reserve to loans and leases

2.43

 

2.31

 

2.14

 

 

2.43

 

2.14

 

Nonperforming assets to loans and leases

1.33

 

1.20

 

0.34

 

 

1.33

 

0.34

 

 

 

 

 

 

 

 

 

September 30,

June 30,

March 31,

 

December 31,

September 30,

 

2020

2020

2020

 

2019

2019

END OF PERIOD BALANCES

 

 

 

 

 

 

Assets

$

7,290,949

 

$

7,365,146

 

$

6,735,118

 

 

$

6,622,776

 

$

6,691,070

 

Loans and leases

5,627,036

 

5,692,322

 

5,129,514

 

 

5,085,527

 

5,099,546

 

Deposits

5,896,855

 

5,993,456

 

5,275,911

 

 

5,357,326

 

5,391,679

 

Reserve for loan and lease losses

136,817

 

131,283

 

120,798

 

 

111,254

 

108,941

 

Goodwill and intangible assets

83,953

 

83,959

 

83,964

 

 

83,971

 

83,978

 

Common shareholders’ equity

877,754

 

864,995

 

850,897

 

 

828,277

 

813,167

 

Total equity

915,015

 

901,653

 

877,302

 

 

848,636

 

833,042

 

ASSET QUALITY

 

 

 

 

 

 

Loans and leases past due 90 days or more

$

81

 

$

256

 

$

191

 

 

$

309

 

$

311

 

Nonaccrual loans and leases

70,595

 

62,800

 

26,301

 

 

9,789

 

10,188

 

Other real estate

303

 

303

 

362

 

 

522

 

629

 

Repossessions

4,639

 

6,132

 

9,020

 

 

8,623

 

6,610

 

Equipment owned under operating leases

136

 

57

 

 

 

 

 

Total nonperforming assets

$

75,754

 

$

69,548

 

$

35,874

 

 

$

19,243

 

$

17,738

 

(1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio.

(2) Calculated as common shareholders’ equity divided by common shares outstanding at the end of the period.

(3) Calculated under banking regulatory guidelines.

1st SOURCE CORPORATION

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

 

 

 

 

 

 

 

(Unaudited - Dollars in thousands)

 

 

 

 

 

 

 

 

September 30,

 

June 30,

 

December 31,

 

September 30,

 

2020

 

2020

 

2019

 

2019

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

$

62,575

 

 

 

$

67,591

 

 

 

$

67,215

 

 

 

$

94,160

 

 

Federal funds sold and interest bearing deposits with other banks

91,641

 

 

 

112,645

 

 

 

16,150

 

 

 

33,325

 

 

Investment securities available-for-sale

1,083,427

 

 

 

1,055,797

 

 

 

1,040,583

 

 

 

1,032,185

 

 

Other investments

27,674

 

 

 

30,619

 

 

 

28,414

 

 

 

28,404

 

 

Mortgages held for sale

20,990

 

 

 

36,508

 

 

 

20,277

 

 

 

28,654

 

 

Loans and leases, net of unearned discount:

 

 

 

 

 

 

 

Commercial and agricultural

1,681,519

 

 

 

1,710,712

 

 

 

1,132,791

 

 

 

1,175,936

 

 

Auto and light truck

527,582

 

 

 

563,606

 

 

 

588,807

 

 

 

612,921

 

 

Medium and heavy duty truck

271,248

 

 

 

284,432

 

 

 

294,824

 

 

 

289,925

 

 

Aircraft

806,162

 

 

 

782,160

 

 

 

784,040

 

 

 

805,568

 

 

Construction equipment

723,596

 

 

 

739,027

 

 

 

705,451

 

 

 

685,696

 

 

Commercial real estate

961,550

 

 

 

942,971

 

 

 

908,177

 

 

 

858,402

 

 

Residential real estate and home equity

519,881

 

 

 

531,972

 

 

 

532,003

 

 

 

531,630

 

 

Consumer

135,498

 

 

 

137,442

 

 

 

139,434

 

 

 

139,468

 

 

Total loans and leases

5,627,036

 

 

 

5,692,322

 

 

 

5,085,527

 

 

 

5,099,546

 

 

Reserve for loan and lease losses

(136,817

)

 

 

(131,283

)

 

 

(111,254

)

 

 

(108,941

)

 

Net loans and leases

5,490,219

 

 

 

5,561,039

 

 

 

4,974,273

 

 

 

4,990,605

 

 

Equipment owned under operating leases, net

79,703

 

 

 

86,183

 

 

 

111,684

 

 

 

119,171

 

 

Net premises and equipment

49,933

 

 

 

51,486

 

 

 

52,219

 

 

 

51,680

 

 

Goodwill and intangible assets

83,953

 

 

 

83,959

 

 

 

83,971

 

 

 

83,978

 

 

Accrued income and other assets

300,834

 

 

 

279,319

 

 

 

227,990

 

 

 

228,908

 

 

Total assets

$

7,290,949

 

 

 

$

7,365,146

 

 

 

$

6,622,776

 

 

 

$

6,691,070

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Noninterest-bearing demand

$

1,720,768

 

 

 

$

1,684,102

 

 

 

$

1,216,834

 

 

 

$

1,246,063

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

Interest-bearing demand

1,885,771

 

 

 

1,866,415

 

 

 

1,677,200

 

 

 

1,605,602

 

 

Savings

992,320

 

 

 

942,891

 

 

 

814,794

 

 

 

820,409

 

 

Time

1,297,996

 

 

 

1,500,048

 

 

 

1,648,498

 

 

 

1,719,605

 

 

Total interest-bearing deposits

4,176,087

 

 

 

4,309,354

 

 

 

4,140,492

 

 

 

4,145,616

 

 

Total deposits

5,896,855

 

 

 

5,993,456

 

 

 

5,357,326

 

 

 

5,391,679

 

 

Short-term borrowings:

 

 

 

 

 

 

 

Federal funds purchased and securities sold under agreements to repurchase

158,834

 

 

 

169,483

 

 

 

120,459

 

 

 

139,417

 

 

Other short-term borrowings

6,740

 

 

 

7,536

 

 

 

25,434

 

 

 

57,734

 

 

Total short-term borrowings

165,574

 

 

 

177,019

 

 

 

145,893

 

 

 

197,151

 

 

Long-term debt and mandatorily redeemable securities

81,659

 

 

 

81,760

 

 

 

71,639

 

 

 

71,520

 

 

Subordinated notes

58,764

 

 

 

58,764

 

 

 

58,764

 

 

 

58,764

 

 

Accrued expenses and other liabilities

173,082

 

 

 

152,494

 

 

 

140,518

 

 

 

138,914

 

 

Total liabilities

6,375,934

 

 

 

6,463,493

 

 

 

5,774,140

 

 

 

5,858,028

 

 

 

 

 

 

 

 

 

 

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 September 30, 2020,
June 30, 2020, December 31, 2019, and September 30, 2019, respectively

436,538

 

 

 

436,538

 

 

 

436,538

 

 

 

436,538

 

 

Retained earnings

497,419

 

 

 

484,491

 

 

 

463,269

 

 

 

448,715

 

 

Cost of common stock in treasury (2,652,030, 2,655,319, 2,696,200, and 2,696,918
shares at September 30, 2020, June 30, 2020, December 31, 2019, and
September 30, 2019, respectively)

(75,861

)

 

 

(75,922

)

 

 

(76,702

)

 

 

(76,716

)

 

Accumulated other comprehensive income

19,658

 

 

 

19,888

 

 

 

5,172

 

 

 

4,630

 

 

Total shareholders’ equity

877,754

 

 

 

864,995

 

 

 

828,277

 

 

 

813,167

 

 

Noncontrolling interests

37,261

 

 

 

36,658

 

 

 

20,359

 

 

 

19,875

 

 

Total equity

915,015

 

 

 

901,653

 

 

 

848,636

 

 

 

833,042

 

 

Total liabilities and equity

$

7,290,949

 

 

 

$

7,365,146

 

 

 

$

6,622,776

 

 

 

$

6,691,070

 

 

1st SOURCE CORPORATION

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

 

 

 

 

(Unaudited - Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

September 30,

 

June 30,

 

September 30,

 

September 30,

 

September 30,

 

2020

 

2020

 

2019

 

2020

 

2019

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

$

58,318

 

 

$

58,815

 

 

 

$

66,807

 

 

 

$

178,659

 

 

 

$

195,089

 

 

Investment securities, taxable

4,103

 

 

4,487

 

 

 

5,056

 

 

 

14,140

 

 

 

15,757

 

 

Investment securities, tax-exempt

207

 

 

232

 

 

 

316

 

 

 

703

 

 

 

1,054

 

 

Other

289

 

 

316

 

 

 

497

 

 

 

951

 

 

 

1,434

 

 

Total interest income

62,917

 

 

63,850

 

 

 

72,676

 

 

 

194,453

 

 

 

213,334

 

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

6,532

 

 

8,265

 

 

 

13,524

 

 

 

25,648

 

 

 

37,972

 

 

Short-term borrowings

83

 

 

90

 

 

 

293

 

 

 

427

 

 

 

1,764

 

 

Subordinated notes

824

 

 

835

 

 

 

914

 

 

 

2,543

 

 

 

2,770

 

 

Long-term debt and mandatorily redeemable securities

610

 

 

659

 

 

 

750

 

 

 

2,122

 

 

 

2,258

 

 

Total interest expense

8,049

 

 

9,849

 

 

 

15,481

 

 

 

30,740

 

 

 

44,764

 

 

Net interest income

54,868

 

 

54,001

 

 

 

57,195

 

 

 

163,713

 

 

 

168,570

 

 

Provision for loan and lease losses

9,303

 

 

10,375

 

 

 

3,717

 

 

 

31,031

 

 

 

12,882

 

 

Net interest income after provision for loan and lease losses

45,565

 

 

43,626

 

 

 

53,478

 

 

 

132,682

 

 

 

155,688

 

 

Noninterest income:

 

 

 

 

 

 

 

 

 

Trust and wealth advisory

5,153

 

 

5,589

 

 

 

4,982

 

 

 

15,590

 

 

 

15,423

 

 

Service charges on deposit accounts

2,336

 

 

1,910

 

 

 

2,892

 

 

 

6,851

 

 

 

8,175

 

 

Debit card

4,019

 

 

3,601

 

 

 

3,727

 

 

 

10,993

 

 

 

10,616

 

 

Mortgage banking

6,474

 

 

3,315

 

 

 

1,362

 

 

 

12,125

 

 

 

3,297

 

 

Insurance commissions

1,825

 

 

1,695

 

 

 

1,603

 

 

 

5,401

 

 

 

5,295

 

 

Equipment rental

5,593

 

 

5,990

 

 

 

7,578

 

 

 

18,213

 

 

 

23,369

 

 

(Losses) gains on investment securities available-for-sale

 

 

(1

)

 

 

 

 

 

279

 

 

 

 

 

Other

2,641

 

 

3,142

 

 

 

3,621

 

 

 

8,452

 

 

 

9,378

 

 

Total noninterest income

28,041

 

 

25,241

 

 

 

25,765

 

 

 

77,904

 

 

 

75,553

 

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

25,609

 

 

23,999

 

 

 

24,434

 

 

 

74,009

 

 

 

71,716

 

 

Net occupancy

2,512

 

 

2,504

 

 

 

2,635

 

 

 

7,737

 

 

 

7,888

 

 

Furniture and equipment

6,247

 

 

6,258

 

 

 

6,027

 

 

 

18,912

 

 

 

18,340

 

 

Depreciation – leased equipment

4,694

 

 

5,142

 

 

 

6,198

 

 

 

15,263

 

 

 

19,122

 

 

Professional fees

2,041

 

 

1,258

 

 

 

1,603

 

 

 

4,741

 

 

 

4,907

 

 

Supplies and communication

1,305

 

 

1,390

 

 

 

1,643

 

 

 

4,329

 

 

 

4,744

 

 

FDIC and other insurance

868

 

 

599

 

 

 

260

 

 

 

1,755

 

 

 

1,513

 

 

Business development and marketing

923

 

 

1,121

 

 

 

1,844

 

 

 

3,403

 

 

 

4,471

 

 

Loan and lease collection and repossession

1,054

 

 

838

 

 

 

697

 

 

 

2,655

 

 

 

2,288

 

 

Other

1,790

 

 

1,716

 

 

 

1,765

 

 

 

5,599

 

 

 

4,674

 

 

Total noninterest expense

47,043

 

 

44,825

 

 

 

47,106

 

 

 

138,403

 

 

 

139,663

 

 

Income before income taxes

26,563

 

 

24,042

 

 

 

32,137

 

 

 

72,183

 

 

 

91,578

 

 

Income tax expense

6,509

 

 

5,516

 

 

 

7,689

 

 

 

17,185

 

 

 

21,517

 

 

Net income

20,054

 

 

18,526

 

 

 

24,448

 

 

 

54,998

 

 

 

70,061

 

 

Net loss (income) attributable to noncontrolling interests

4

 

 

(24

)

 

 

(10

)

 

 

(25

)

 

 

(42

)

 

Net income available to common shareholders

$

20,058

 

 

$

18,502

 

 

 

$

24,438

 

 

 

$

54,973

 

 

 

$

70,019

 

 

Per common share:

 

 

 

 

 

 

 

 

 

Basic net income per common share

$

0.78

 

 

$

0.72

 

 

 

$

0.95

 

 

 

$

2.14

 

 

 

$

2.72

 

 

Diluted net income per common share

$

0.78

 

 

$

0.72

 

 

 

$

0.95

 

 

 

$

2.14

 

 

 

$

2.72

 

 

Cash dividends

$

0.28

 

 

$

0.28

 

 

 

$

0.27

 

 

 

$

0.85

 

 

 

$

0.81

 

 

Basic weighted average common shares outstanding

25,552,374

 

 

25,540,855

 

 

 

25,520,035

 

 

 

25,538,910

 

 

 

25,630,771

 

 

Diluted weighted average common shares outstanding

25,552,374

 

 

25,540,855

 

 

 

25,520,035

 

 

 

25,538,910

 

 

 

25,630,771

 

 

1st SOURCE CORPORATION

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY

INTEREST RATES AND INTEREST DIFFERENTIAL

(Unaudited - Dollars in thousands)

 

 

 

Three Months Ended

 

 

 

September 30, 2020

 

June 30, 2020

 

September 30, 2019

 

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

$

1,012,703

 

 

 

$

4,103

 

 

 

1.61

%

 

$

995,776

 

 

 

$

4,487

 

 

 

1.81

%

 

$

959,104

 

 

 

$

5,056

 

 

 

2.09

%

Tax exempt(1)

45,077

 

 

 

257

 

 

 

2.26

%

 

49,534

 

 

 

286

 

 

 

2.32

%

 

65,146

 

 

 

388

 

 

 

2.36

%

Mortgages held for sale

26,327

 

 

 

186

 

 

 

2.81

%

 

27,016

 

 

 

198

 

 

 

2.95

%

 

19,888

 

 

 

190

 

 

 

3.79

%

Loans and leases, net of unearned discount(1)

5,669,615

 

 

 

58,210

 

 

 

4.08

%

 

5,565,160

 

 

 

58,700

 

 

 

4.24

%

 

5,091,358

 

 

 

66,712

 

 

 

5.20

%

Other investments

87,998

 

 

 

289

 

 

 

1.31

%

 

89,525

 

 

 

316

 

 

 

1.42

%

 

54,768

 

 

 

497

 

 

 

3.60

%

Total earning assets(1)

6,841,720

 

 

 

63,045

 

 

 

3.67

%

 

6,727,011

 

 

 

63,987

 

 

 

3.83

%

 

6,190,264

 

 

 

72,843

 

 

 

4.67

%

Cash and due from banks

72,474

 

 

 

 

 

 

 

73,523

 

 

 

 

 

 

 

66,046

 

 

 

 

 

 

Reserve for loan and lease losses

(134,824

)

 

 

 

 

 

 

(124,186

)

 

 

 

 

 

 

(106,559

)

 

 

 

 

 

Other assets

502,172

 

 

 

 

 

 

 

509,058

 

 

 

 

 

 

 

471,129

 

 

 

 

 

 

Total assets

$

7,281,542

 

 

 

 

 

 

 

$

7,185,406

 

 

 

 

 

 

 

$

6,620,880

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

$

4,225,299

 

 

 

$

6,532

 

 

 

0.62

%

 

$

4,248,478

 

 

 

$

8,265

 

 

 

0.78

%

 

$

4,174,746

 

 

 

$

13,524

 

 

 

1.29

%

Short-term borrowings

187,912

 

 

 

83

 

 

 

0.18

%

 

191,411

 

 

 

90

 

 

 

0.19

%

 

188,562

 

 

 

293

 

 

 

0.62

%

Subordinated notes

58,764

 

 

 

824

 

 

 

5.58

%

 

58,764

 

 

 

835

 

 

 

5.71

%

 

58,764

 

 

 

914

 

 

 

6.17

%

Long-term debt and mandatorily redeemable securities

81,528

 

 

 

610

 

 

 

2.98

%

 

81,766

 

 

 

659

 

 

 

3.24

%

 

71,304

 

 

 

750

 

 

 

4.17

%

Total interest-bearing liabilities

4,553,503

 

 

 

8,049

 

 

 

0.70

%

 

4,580,419

 

 

 

9,849

 

 

 

0.86

%

 

4,493,376

 

 

 

15,481

 

 

 

1.37

%

Noninterest-bearing deposits

1,664,135

 

 

 

 

 

 

 

1,562,100

 

 

 

 

 

 

 

1,188,645

 

 

 

 

 

 

Other liabilities

149,978

 

 

 

 

 

 

 

151,281

 

 

 

 

 

 

 

119,125

 

 

 

 

 

 

Shareholders’ equity

876,992

 

 

 

 

 

 

 

862,209

 

 

 

 

 

 

 

809,279

 

 

 

 

 

 

Noncontrolling interests

36,934

 

 

 

 

 

 

 

29,397

 

 

 

 

 

 

 

10,455

 

 

 

 

 

 

Total liabilities and equity

$

7,281,542

 

 

 

 

 

 

 

$

7,185,406

 

 

 

 

 

 

 

$

6,620,880

 

 

 

 

 

 

Less: Fully tax-equivalent adjustments

 

 

(128

)

 

 

 

 

 

 

(137

)

 

 

 

 

 

 

(167

)

 

 

 

Net interest income/margin (GAAP-derived)(1)

 

 

$

54,868

 

 

 

3.19

%

 

 

 

$

54,001

 

 

 

3.23

%

 

 

 

$

57,195

 

 

 

3.67

%

Fully tax-equivalent adjustments

 

 

128

 

 

 

 

 

 

 

137

 

 

 

 

 

 

 

167

 

 

 

 

Net interest income/margin - FTE(1)

 

 

$

54,996

 

 

 

3.20

%

 

 

 

$

54,138

 

 

 

3.24

%

 

 

 

$

57,362

 

 

 

3.68

%

(1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio.

 

 

 

 

 

 

 

 

 

 

 

 

1st SOURCE CORPORATION

 

 

 

 

 

 

 

 

 

 

 

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

INTEREST RATES AND INTEREST DIFFERENTIAL

 

 

 

 

 

(Unaudited - Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

September 30, 2020

 

September 30, 2019

 

Average
Balance

 

Interest
Income/Expense

 

Yield/
Rate

 

Average
Balance

 

Interest
Income/Expense

 

Yield/
Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

Taxable

$

994,035

 

 

$

14,140

 

 

1.90

%

 

$

932,779

 

 

$

15,757

 

 

2.26

%

Tax exempt(1)

50,590

 

 

868

 

 

2.29

%

 

71,684

 

 

1,297

 

 

2.42

%

Mortgages held for sale

21,563

 

 

480

 

 

2.97

%

 

13,616

 

 

418

 

 

4.10

%

Loans and leases, net of unearned discount(1)

5,445,213

 

 

178,430

 

 

4.38

%

 

4,984,498

 

 

194,954

 

 

5.23

%

Other investments

73,050

 

 

951

 

 

1.74

%

 

50,109

 

 

1,434

 

 

3.83

%

Total earning assets(1)

6,584,451

 

 

194,869

 

 

3.95

%

 

6,052,686

 

 

213,860

 

 

4.72

%

Cash and due from banks

70,475

 

 

 

 

 

 

65,801

 

 

 

 

 

Reserve for loan and lease losses

(123,790)

 

 

 

 

 

 

(103,699)

 

 

 

 

 

Other assets

495,820

 

 

 

 

 

 

452,759

 

 

 

 

 

Total assets

$

7,026,956

 

 

 

 

 

 

$

6,467,547

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

4,183,502

 

 

25,648

 

 

0.82

%

 

4,083,140

 

 

37,972

 

 

1.24

%

Short-term borrowings

193,934

 

 

427

 

 

0.29

%

 

213,551

 

 

1,764

 

 

1.10

%

Subordinated notes

58,764

 

 

2,543

 

 

5.78

%

 

58,764

 

 

2,770

 

 

6.30

%

Long-term debt and mandatorily redeemable securities

80,427

 

 

2,122

 

 

3.52

%

 

71,034

 

 

2,258

 

 

4.25

%

Total interest-bearing liabilities

4,516,627

 

 

30,740

 

 

0.91

%

 

4,426,489

 

 

44,764

 

 

1.35

%

Noninterest-bearing deposits

1,474,807

 

 

 

 

 

 

1,147,195

 

 

 

 

 

Other liabilities

144,393

 

 

 

 

 

 

97,096

 

 

 

 

 

Shareholders’ equity

861,366

 

 

 

 

 

 

791,438

 

 

 

 

 

Noncontrolling interests

29,763

 

 

 

 

 

 

5,329

 

 

 

 

 

Total liabilities and equity

$

7,026,956

 

 

 

 

 

 

$

6,467,547

 

 

 

 

 

Less: Fully tax-equivalent adjustments

 

 

(416)

 

 

 

 

 

 

(526)

 

 

 

Net interest income/margin (GAAP-derived)(1)

 

 

$

163,713

 

 

3.32

%

 

 

 

$

168,570

 

 

3.72

%

Fully tax-equivalent adjustments

 

 

416

 

 

 

 

 

 

526

 

 

 

Net interest income/margin - FTE(1)

 

 

$

164,129

 

 

3.33

%

 

 

 

$

169,096

 

 

3.74

%

(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

 

Nine Months Ended

 

 

September 30,

June 30,

September 30,

 

September 30,

September 30,

 

 

2020

2020

2019

 

2020

2019

Calculation of Net Interest Margin

 

 

 

 

 

 

(A)

Interest income (GAAP)

$

62,917

 

$

63,850

 

$

72,676

 

 

$

194,453

 

$

213,334

 

 

Fully tax-equivalent adjustments:

 

 

 

 

 

 

(B)

– Loans and leases

78

 

83

 

95

 

 

251

 

283

 

(C)

– Tax exempt investment securities

50

 

54

 

72

 

 

165

 

243

 

(D)

Interest income – FTE (A+B+C)

63,045

 

63,987

 

72,843

 

 

194,869

 

213,860

 

(E)

Interest expense (GAAP)

8,049

 

9,849

 

15,481

 

 

30,740

 

44,764

 

(F)

Net interest income (GAAP) (A-E)

54,868

 

54,001

 

57,195

 

 

163,713

 

168,570

 

(G)

Net interest income - FTE (D-E)

54,996

 

54,138

 

57,362

 

 

164,129

 

169,096

 

(H)

Annualization factor

3.978

 

4.022

 

3.967

 

 

1.336

 

1.337

 

(I)

Total earning assets

$

6,841,720

 

$

6,727,011

 

$

6,190,264

 

 

$

6,584,451

 

$

6,052,686

 

 

Net interest margin (GAAP-derived) (F*H)/I

3.19

%

3.23

%

3.67

%

 

3.32

%

3.72

%

 

Net interest margin – FTE (G*H)/I

3.20

%

3.24

%

3.68

%

 

3.33

%

3.74

%

 

 

 

 

 

 

 

 

Calculation of Efficiency Ratio

 

 

 

 

 

 

(F)

Net interest income (GAAP)

$

54,868

 

$

54,001

 

$

57,195

 

 

$

163,713

 

$

168,570

 

(G)

Net interest income – FTE

54,996

 

54,138

 

57,362

 

 

164,129

 

169,096

 

(J)

Plus: noninterest income (GAAP)

28,041

 

25,241

 

25,765

 

 

77,904

 

75,553

 

(K)

Less: gains/losses on investment securities and partnership investments

(177)

 

(248)

 

(374)

 

 

(938)

 

(521)

 

(L)

Less: depreciation – leased equipment

(4,694)

 

(5,142)

 

(6,198)

 

 

(15,263)

 

(19,122)

 

(M)

Total net revenue (GAAP) (F+J)

82,909

 

79,242

 

82,960

 

 

241,617

 

244,123

 

(N)

Total net revenue – adjusted (G+J–K–L)

78,166

 

73,989

 

76,555

 

 

225,832

 

225,006

 

(O)

Noninterest expense (GAAP)

47,043

 

44,825

 

47,106

 

 

138,403

 

139,663

 

(L)

Less:depreciation – leased equipment

(4,694)

 

(5,142)

 

(6,198)

 

 

(15,263)

 

(19,122)

 

(P)

Noninterest expense – adjusted (O–L)

42,349

 

39,683

 

40,908

 

 

123,140

 

120,541

 

 

Efficiency ratio (GAAP-derived) (O/M)

56.74

%

56.57

%

56.78

%

 

57.28

%

57.21

%

 

Efficiency ratio – adjusted (P/N)

54.18

%

53.63

%

53.44

%

 

54.53

%

53.57

%

 

 

 

 

 

 

 

 

 

 

End of Period

 

 

 

 

 

September 30,

June 30,

September 30,

 

 

 

 

 

2020

2020

2019

 

 

 

Calculation of Tangible Common Equity-to-Tangible Assets Ratio

 

 

 

 

 

(Q)

Total common shareholders’ equity (GAAP)

$

877,754

 

$

864,995

 

$

813,167

 

 

 

 

(R)

Less: goodwill and intangible assets

(83,953)

 

(83,959)

 

(83,978)

 

 

 

 

(S)

Total tangible common shareholders’ equity (Q–R)

$

793,801

 

$

781,036

 

$

729,189

 

 

 

 

(T)

Total assets (GAAP)

7,290,949

 

7,365,146

 

6,691,070

 

 

 

 

(R)

Less: goodwill and intangible assets

(83,953)

 

(83,959)

 

(83,978)

 

 

 

 

(U)

Total tangible assets (T–R)

$

7,206,996

 

$

7,281,187

 

$

6,607,092

 

 

 

 

 

Common equity-to-assets ratio (GAAP-derived) (Q/T)

12.04

%

11.74

%

12.15

%

 

 

 

 

Tangible common equity-to-tangible assets ratio (S/U)

11.01

%

10.73

%

11.04

%

 

 

 

 

 

 

 

 

 

 

 

Calculation of Tangible Book Value per Common Share

 

 

 

 

 

 

(Q)

Total common shareholders’ equity (GAAP)

$

877,754

 

$

864,995

 

$

813,167

 

 

 

 

(V)

Actual common shares outstanding

25,553,644

 

25,550,355

 

25,508,756

 

 

 

 

 

Book value per common share (GAAP-derived) (Q/V)*1000

$

34.35

 

$

33.85

 

$

31.88

 

 

 

 

 

Tangible common book value per share (S/V)*1000

$

31.06

 

$

30.57

 

$

28.59

 

 

 

 

The NASDAQ Stock Market National Market Symbol: “SRCE” (CUSIP #336901 10 3)

Please contact us at shareholder@1stsource.com

Contacts

Andrea Short
574-235-2000

Release Summary

1st Source Corporation Reports Third Quarter Results, Cash Dividend Declared

Contacts

Andrea Short
574-235-2000