UNITED STATES
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SECURITIES AND EXCHANGE COMMISSION
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Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
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PURSUANT TO SECTION 13 OR 15(d) OF
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THE SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): April 21, 2011
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1st Source Corporation
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(Exact name of registrant as specified in its charter)
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Indiana
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0-6233
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35-1068133
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(State or other jurisdiction of incorporation)
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(Commission File No.)
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(I.R.S. Employer Identification No.)
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100 North Michigan Street, South Bend, Indiana 46601
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(Address of principal executive offices) (Zip Code)
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574-235-2000
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(Registrant's telephone number, including area code)
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Not Applicable
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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1st SOURCE CORPORATION
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(Registrant)
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Date: April 21, 2011
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/s/CHRISTOPHER J. MURPHY III
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Christopher J. Murphy III
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Chairman of the Board, President and CEO
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Date: April 21, 2011
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/s/LARRY E. LENTYCH
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Larry E. Lentych
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Treasurer and Chief Financial Officer
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Principal Accounting Officer
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Exhibit 99.1 | |||||
For: | Immediate Release | Contact: | Larry Lentych | ||
April 21, 2011 | Andrea Short | ||||
574 235 2000 |
1st QUARTER 2011 FINANCIAL HIGHLIGHTS
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(Unaudited - Dollars in thousands, except per share data)
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Three Months Ended
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March 31,
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2011
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2010
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END OF PERIOD BALANCES
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Assets
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$ | 4,412,376 | $ | 4,445,112 | ||||||
Loans and leases
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3,051,718 | 3,106,115 | ||||||||
Deposits
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3,609,007 | 3,539,130 | ||||||||
Reserve for loan and lease losses
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86,160 | 87,827 | ||||||||
Intangible assets
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88,650 | 89,949 | ||||||||
Common shareholders' equity
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490,467 | 473,803 | ||||||||
Total shareholders' equity
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490,467 | 579,057 | ||||||||
AVERAGE BALANCES
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Assets
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$ | 4,420,164 | $ | 4,485,394 | ||||||
Earning assets
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4,108,743 | 4,145,707 | ||||||||
Investments
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956,568 | 892,606 | ||||||||
Loans and leases
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3,054,013 | 3,100,144 | ||||||||
Deposits
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3,600,015 | 3,574,129 | ||||||||
Interest bearing liabilities
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3,348,626 | 3,396,682 | ||||||||
Common shareholders' equity
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492,673 | 473,562 | ||||||||
Total shareholders' equity
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492,673 | 578,612 | ||||||||
INCOME STATEMENT DATA
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Net interest income
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$ | 36,860 | $ | 34,902 | ||||||
Net interest income - FTE
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37,566 | 35,777 | ||||||||
Provision for loan and lease losses
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2,198 | 4,388 | ||||||||
Noninterest income
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18,953 | 20,922 | ||||||||
Noninterest expense
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38,476 | 37,110 | ||||||||
Net income
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10,608 | 9,679 | ||||||||
Net income available to common shareholders
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10,608 | 7,968 | ||||||||
PER SHARE DATA
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Basic net income per common share
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$ | 0.43 | $ | 0.33 | ||||||
Diluted net income per common share
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0.43 | 0.33 | ||||||||
Common cash dividends declared
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0.16 | 0.15 | ||||||||
Book value per common share
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20.18 | 19.51 | ||||||||
Tangible book value per common share
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16.53 | 15.81 | ||||||||
Market value - High
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20.90 | 18.74 | ||||||||
Market value - Low
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17.86 | 14.25 | ||||||||
Basic weighted average common shares outstanding
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24,271,366 | 24,210,242 | ||||||||
Diluted weighted average common shares outstanding
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24,279,517 | 24,215,506 | ||||||||
KEY RATIOS
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Return on average assets
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0.97 |
%
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0.88 | % | ||||||
Return on average common shareholders' equity
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8.73 | 6.82 | ||||||||
Average common shareholders' equity to average assets
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11.15 | 10.56 | ||||||||
End of period tangible common equity to tangible assets
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9.29 | 8.81 | ||||||||
Risk-based capital - Tier 1
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14.38 | 16.73 | ||||||||
Risk-based capital - Total
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15.68 | 18.01 | ||||||||
Net interest margin
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3.71 | 3.50 | ||||||||
Efficiency: expense to revenue
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66.45 | 63.78 | ||||||||
Net charge-offs to average loans and leases
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0.39 | 0.63 | ||||||||
Loan and lease loss reserve to loans and leases
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2.82 | 2.83 | ||||||||
Nonperforming assets to loans and leases
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2.81 | 2.98 | ||||||||
ASSET QUALITY
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Loans and leases past due 90 days or more
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$ | 515 | $ | 272 | ||||||
Nonaccrual loans and leases
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74,038 | 78,094 | ||||||||
Other real estate
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6,813 | 5,205 | ||||||||
Former bank premises held for sale
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1,200 | 2,363 | ||||||||
Repossessions
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5,482 | 9,886 | ||||||||
Equipment owned under operating leases
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300 | 150 | ||||||||
Total nonperforming assets
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88,348 | 95,970 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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(Unaudited - Dollars in thousands)
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March 31, 2011
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March 31, 2010
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ASSETS
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Cash and due from banks
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$ | 57,271 | $ | 53,518 | ||||
Federal funds sold and interest bearing deposits with other banks
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81,661 | 68,606 | ||||||
Investment securities available-for-sale
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(amortized cost of $927,522 and $878,403 at
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March 31, 2011 and 2010, respectively)
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942,221 | 888,862 | ||||||
Other investments
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20,503 | 23,545 | ||||||
Trading account securities
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146 | 130 | ||||||
Mortgages held for sale
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5,467 | 23,067 | ||||||
Loans and leases, net of unearned discount:
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Commercial and agricultural loans
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547,381 | 546,826 | ||||||
Auto, light truck and environmental equipment
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416,957 | 364,445 | ||||||
Medium and heavy duty truck
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156,022 | 200,228 | ||||||
Aircraft financing
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601,480 | 608,643 | ||||||
Construction equipment financing
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271,490 | 303,866 | ||||||
Commercial real estate
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578,648 | 584,756 | ||||||
Residential real estate
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386,290 | 392,911 | ||||||
Consumer loans
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93,450 | 104,440 | ||||||
Total loans and leases
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3,051,718 | 3,106,115 | ||||||
Reserve for loan and lease losses
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(86,160 | ) | (87,827 | ) | ||||
Net loans and leases
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2,965,558 | 3,018,288 | ||||||
Equipment owned under operating leases, net
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81,304 | 92,226 | ||||||
Net premises and equipment
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36,024 | 37,556 | ||||||
Goodwill and intangible assets
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88,650 | 89,949 | ||||||
Accrued income and other assets
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133,571 | 149,365 | ||||||
Total assets
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$ | 4,412,376 | $ | 4,445,112 | ||||
LIABILITIES
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Deposits:
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Noninterest bearing
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$ | 513,315 | $ | 457,645 | ||||
Interest bearing
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3,095,692 | 3,081,485 | ||||||
Total deposits
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3,609,007 | 3,539,130 | ||||||
Short-term borrowings:
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Federal funds purchased and securities sold
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under agreements to purchase
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112,914 | 111,788 | ||||||
Other short-term borrowings
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19,239 | 29,358 | ||||||
Total short-term borrowings
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132,153 | 141,146 | ||||||
Long-term debt and mandatorily redeemable securities
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26,717 | 24,847 | ||||||
Subordinated notes
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89,692 | 89,692 | ||||||
Accrued expenses and other liabilities
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64,340 | 71,240 | ||||||
Total liabilities
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3,921,909 | 3,866,055 | ||||||
SHAREHOLDERS' EQUITY
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Preferred stock; no par value
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- | 105,254 | ||||||
Common stock; no par value
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346,535 | 350,272 | ||||||
Retained earnings
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164,455 | 147,381 | ||||||
Cost of common stock in treasury
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(29,655 | ) | (30,348 | ) | ||||
Accumulated other comprehensive income
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9,132 | 6,498 | ||||||
Total shareholders' equity
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490,467 | 579,057 | ||||||
Total liabilities and shareholders' equity
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$ | 4,412,376 | $ | 4,445,112 |
1st SOURCE CORPORATION
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CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited - Dollars in thousands, except per share amounts)
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Three Months Ended
March 31,
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2011
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2010
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Interest income:
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Loans and leases
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$ | 41,299 | $ | 42,270 | ||||
Investment securities, taxable
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4,482 | 5,401 | ||||||
Investment securities, tax-exempt
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1,186 | 1,467 | ||||||
Other
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243 | 274 | ||||||
Total interest income
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47,210 | 49,412 | ||||||
Interest expense:
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Deposits
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8,355 | 12,405 | ||||||
Short-term borrowings
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89 | 188 | ||||||
Subordinated notes
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1,647 | 1,647 | ||||||
Long-term debt and mandatorily redeemable securities
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259 | 270 | ||||||
Total interest expense
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10,350 | 14,510 | ||||||
Net interest income
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36,860 | 34,902 | ||||||
Provision for loan and lease losses
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2,198 | 4,388 | ||||||
Net interest income after provision for
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loan and lease losses
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34,662 | 30,514 | ||||||
Noninterest income:
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Trust fees
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3,992 | 3,745 | ||||||
Service charges on deposit accounts
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4,236 | 4,620 | ||||||
Mortgage banking income
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444 | 777 | ||||||
Insurance commissions
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1,142 | 1,465 | ||||||
Equipment rental income
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6,038 | 6,745 | ||||||
Other income
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2,971 | 2,689 | ||||||
Investment securities and other investment gains
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130 | 881 | ||||||
Total noninterest income
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18,953 | 20,922 | ||||||
Noninterest expense:
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Salaries and employee benefits
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18,638 | 18,810 | ||||||
Net occupancy expense
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2,320 | 2,487 | ||||||
Furniture and equipment expense
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3,349 | 2,800 | ||||||
Depreciation - leased equipment
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4,805 | 5,364 | ||||||
Professional fees
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1,096 | 1,514 | ||||||
Supplies and communication
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1,394 | 1,369 | ||||||
FDIC and other insurance
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1,676 | 1,674 | ||||||
Business development and marketing expense
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622 | 567 | ||||||
Loan and lease collection and repossession expense
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1,324 | 1,106 | ||||||
Other expense
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3,252 | 1,419 | ||||||
Total noninterest expense
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38,476 | 37,110 | ||||||
Income before income taxes
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15,139 | 14,326 | ||||||
Income tax expense
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4,531 | 4,647 | ||||||
Net income
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10,608 | 9,679 | ||||||
Preferred stock dividends and discount accretion
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- | (1,711 | ) | |||||
Net income available to common shareholders
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$ | 10,608 | $ | 7,968 | ||||
The Nasdaq Global Select Market Symbol: "SRCE" (CUSIP #336901 10 3)
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Please contact us at shareholder@1stsource.com
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