UNITED STATES
|
||
SECURITIES AND EXCHANGE COMMISSION
|
||
Washington, D.C. 20549
|
||
FORM 8-K
|
||
CURRENT REPORT
|
||
PURSUANT TO SECTION 13 OR 15(d) OF
|
||
THE SECURITIES EXCHANGE ACT OF 1934
|
||
Date of Report (Date of earliest event reported): July 21, 2011
|
||
1st Source Corporation
|
||
(Exact name of registrant as specified in its charter)
|
||
Indiana
|
0-6233
|
35-1068133
|
(State or other jurisdiction of incorporation)
|
(Commission File No.)
|
(I.R.S. Employer Identification No.)
|
100 North Michigan Street, South Bend, Indiana 46601
|
||
(Address of principal executive offices) (Zip Code)
|
||
574-235-2000
|
||
(Registrant's telephone number, including area code)
|
||
Not Applicable
|
||
(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))
|
1st SOURCE CORPORATION
|
||
(Registrant)
|
||
Date: July 21, 2011
|
/s/CHRISTOPHER J. MURPHY III
|
|
Christopher J. Murphy III
|
||
Chairman of the Board, President and CEO
|
||
Date: July 21, 2011
|
/s/LARRY E. LENTYCH
|
|
Larry E. Lentych
|
||
Treasurer and Chief Financial Officer
|
||
Principal Accounting Officer
|
For: | Immediate Release | Contact: | Larry Lentych |
July 21, 2011 | Andrea Short | ||
574 235 2000 |
1st SOURCE CORPORATION
|
|
|||||||||||||||
2nd QUARTER 2011 FINANCIAL HIGHLIGHTS
|
||||||||||||||||
(Unaudited - Dollars in thousands, except for per share data)
|
||||||||||||||||
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
END OF PERIOD BALANCES
|
||||||||||||||||
Assets
|
$ | 4,354,951 | $ | 4,531,313 | ||||||||||||
Loans and leases
|
3,118,157 | 3,131,749 | ||||||||||||||
Deposits
|
3,523,316 | 3,609,586 | ||||||||||||||
Reserve for loan and lease losses
|
85,010 | 88,014 | ||||||||||||||
Intangible assets
|
88,325 | 89,618 | ||||||||||||||
Common shareholders' equity
|
505,594 | 483,919 | ||||||||||||||
Total shareholders' equity
|
505,594 | 589,502 | ||||||||||||||
AVERAGE BALANCES
|
||||||||||||||||
Assets
|
$ | 4,427,034 | $ | 4,517,624 | $ | 4,423,618 | $ | 4,501,598 | ||||||||
Earning assets
|
4,116,791 | 4,174,376 | 4,112,789 | 4,160,120 | ||||||||||||
Investments
|
911,678 | 917,151 | 933,999 | 904,946 | ||||||||||||
Loans and leases
|
3,100,598 | 3,120,871 | 3,077,434 | 3,110,565 | ||||||||||||
Deposits
|
3,597,533 | 3,592,827 | 3,598,767 | 3,583,529 | ||||||||||||
Interest bearing liabilities
|
3,338,983 | 3,399,245 | 3,343,777 | 3,397,971 | ||||||||||||
Common shareholders' equity
|
498,863 | 481,462 | 495,785 | 477,534 | ||||||||||||
Total shareholders' equity
|
498,863 | 586,835 | 495,785 | 582,746 | ||||||||||||
INCOME STATEMENT DATA
|
||||||||||||||||
Net interest income
|
$ | 37,584 | $ | 36,249 | $ | 74,444 | $ | 71,151 | ||||||||
Net interest income - FTE
|
38,232 | 37,113 | 75,798 | 72,890 | ||||||||||||
Provision for loan and lease losses
|
67 | 5,798 | 2,265 | 10,186 | ||||||||||||
Noninterest income
|
21,424 | 20,602 | 40,377 | 41,524 | ||||||||||||
Noninterest expense
|
35,943 | 39,649 | 74,419 | 76,759 | ||||||||||||
Net income
|
14,865 | 7,795 | 25,473 | 17,474 | ||||||||||||
Net income available to common shareholders
|
14,865 | 6,078 | 25,473 | 14,046 | ||||||||||||
PER SHARE DATA
|
||||||||||||||||
Basic net income per common share
|
$ | 0.61 | $ | 0.25 | $ | 1.04 | $ | 0.57 | ||||||||
Diluted net income per common share
|
0.61 | 0.25 | 1.04 | 0.57 | ||||||||||||
Common cash dividends declared
|
0.16 | 0.15 | 0.32 | 0.30 | ||||||||||||
Book value per common share
|
20.88 | 19.93 | 20.88 | 19.93 | ||||||||||||
Tangible book value per common share
|
17.23 | 16.24 | 17.23 | 16.24 | ||||||||||||
Market value - High
|
21.33 | 20.36 | 21.33 | 20.36 | ||||||||||||
Market value - Low
|
19.10 | 16.58 | 17.86 | 14.25 | ||||||||||||
Basic weighted average common shares outstanding
|
24,254,334 | 24,284,519 | 24,262,803 | 24,247,586 | ||||||||||||
Diluted weighted average common shares outstanding
|
24,263,596 | 24,292,491 | 24,271,527 | 24,254,098 | ||||||||||||
KEY RATIOS
|
||||||||||||||||
Return on average assets
|
1.35 |
%
|
0.69 |
%
|
1.16 |
%
|
0.78 | % | ||||||||
Return on average common shareholders' equity
|
11.95 | 5.06 | 10.36 | 5.93 | ||||||||||||
Average common shareholders' equity to average assets
|
11.27 | 10.66 | 11.21 | 10.61 | ||||||||||||
End of period tangible common equity to tangible assets
|
9.78 | 8.88 | 9.78 | 8.88 | ||||||||||||
Risk-based capital - Tier 1
|
14.52 | 16.58 | 14.52 | 16.58 | ||||||||||||
Risk-based capital - Total
|
15.82 | 17.87 | 15.82 | 17.87 | ||||||||||||
Net interest margin
|
3.72 | 3.57 | 3.72 | 3.53 | ||||||||||||
Efficiency: expense to revenue
|
59.10 | 66.70 | 62.70 | 65.27 | ||||||||||||
Net charge-offs to average loans and leases
|
0.16 | 0.72 | 0.27 | 0.67 | ||||||||||||
Loan and lease loss reserve to loans and leases
|
2.73 | 2.81 | 2.73 | 2.81 | ||||||||||||
Nonperforming assets to loans and leases
|
2.39 | 2.71 | 2.39 | 2.71 | ||||||||||||
ASSET QUALITY
|
||||||||||||||||
Loans and leases past due 90 days or more
|
$ | 337 | $ | 1,230 | ||||||||||||
Nonaccrual loans and leases
|
64,920 | 68,433 | ||||||||||||||
Other real estate
|
7,878 | 6,673 | ||||||||||||||
Former bank premises held for sale
|
1,580 | 2,363 | ||||||||||||||
Repossessions
|
1,302 | 8,670 | ||||||||||||||
Equipment owned under operating leases
|
474 | 337 | ||||||||||||||
Total nonperforming assets
|
76,491 | 87,706 |
1st SOURCE CORPORATION
|
||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|
||||||||
(Unaudited - Dollars in thousands)
|
||||||||
June 30, 2011
|
June 30, 2010
|
|||||||
ASSETS
|
||||||||
Cash and due from banks
|
$ | 59,249 | $ | 65,337 | ||||
Federal funds sold and
|
||||||||
interest bearing deposits with other banks
|
100 | 41,099 | ||||||
Investment securities available-for-sale
|
||||||||
(amortized cost of $878,401 and $909,516 at
|
||||||||
June 30, 2011 and 2010, respectively)
|
902,742 | 932,583 | ||||||
Other investments
|
18,974 | 22,892 | ||||||
Trading account securities
|
143 | 113 | ||||||
Mortgages held for sale
|
7,805 | 59,084 | ||||||
Loans and leases, net of unearned discount:
|
||||||||
Commercial and agricultural loans
|
551,820 | 539,003 | ||||||
Auto, light truck and environmental equipment
|
473,925 | 416,152 | ||||||
Medium and heavy duty truck
|
155,423 | 185,954 | ||||||
Aircraft financing
|
607,567 | 596,138 | ||||||
Construction equipment financing
|
274,968 | 308,602 | ||||||
Commercial real estate
|
568,226 | 581,392 | ||||||
Residential real estate
|
390,389 | 401,662 | ||||||
Consumer loans
|
95,839 | 102,846 | ||||||
Total loans and leases
|
3,118,157 | 3,131,749 | ||||||
Reserve for loan and lease losses
|
(85,010 | ) | (88,014 | ) | ||||
Net loans and leases
|
3,033,147 | 3,043,735 | ||||||
Equipment owned under operating leases, net
|
77,102 | 91,288 | ||||||
Net premises and equipment
|
36,885 | 36,573 | ||||||
Goodwill and intangible assets
|
88,325 | 89,618 | ||||||
Accrued income and other assets
|
130,479 | 148,991 | ||||||
Total assets
|
$ | 4,354,951 | $ | 4,531,313 | ||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Noninterest bearing
|
$ | 516,189 | $ | 487,719 | ||||
Interest bearing
|
3,007,127 | 3,121,867 | ||||||
Total deposits
|
3,523,316 | 3,609,586 | ||||||
Short-term borrowings:
|
||||||||
Federal funds purchased and securities
|
||||||||
sold under agreements to repurchase
|
108,799 | 113,638 | ||||||
Other short-term borrowings
|
21,324 | 28,136 | ||||||
Total short-term borrowings
|
130,123 | 141,774 | ||||||
Long-term debt and mandatorily redeemable securities
|
36,785 | 29,854 | ||||||
Subordinated notes
|
89,692 | 89,692 | ||||||
Accrued expenses and other liabilities
|
69,441 | 70,905 | ||||||
Total liabilities
|
3,849,357 | 3,941,811 | ||||||
SHAREHOLDERS' EQUITY
|
||||||||
Preferred stock; no par value
|
- | 105,583 | ||||||
Common stock; no par value
|
346,535 | 350,275 | ||||||
Retained earnings
|
175,374 | 149,799 | ||||||
Cost of common stock in treasury
|
(31,437 | ) | (30,486 | ) | ||||
Accumulated other comprehensive income
|
15,122 | 14,331 | ||||||
Total shareholders' equity
|
505,594 | 589,502 | ||||||
Total liabilities and shareholders' equity
|
$ | 4,354,951 | $ | 4,531,313 |
1st SOURCE CORPORATION
|
|
|||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||
(Unaudited - Dollars in thousands)
|
||||||||||||||||
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Interest income:
|
||||||||||||||||
Loans and leases
|
$ | 41,710 | $ | 43,099 | $ | 83,009 | $ | 85,369 | ||||||||
Investment securities, taxable
|
4,912 | 5,279 | 9,394 | 10,680 | ||||||||||||
Investment securities, tax-exempt
|
1,004 | 1,422 | 2,190 | 2,889 | ||||||||||||
Other
|
247 | 250 | 490 | 524 | ||||||||||||
Total interest income
|
47,873 | 50,050 | 95,083 | 99,462 | ||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
8,162 | 11,573 | 16,517 | 23,978 | ||||||||||||
Short-term borrowings
|
74 | 206 | 163 | 394 | ||||||||||||
Subordinated notes
|
1,648 | 1,647 | 3,295 | 3,294 | ||||||||||||
Long-term debt and mandatorily redeemable securities
|
405 | 375 | 664 | 645 | ||||||||||||
Total interest expense
|
10,289 | 13,801 | 20,639 | 28,311 | ||||||||||||
Net interest income
|
37,584 | 36,249 | 74,444 | 71,151 | ||||||||||||
Provision for loan and lease losses
|
67 | 5,798 | 2,265 | 10,186 | ||||||||||||
Net interest income after provision for loan and lease losses
|
37,517 | 30,451 | 72,179 | 60,965 | ||||||||||||
Noninterest income:
|
||||||||||||||||
Trust fees
|
4,411 | 4,062 | 8,403 | 7,807 | ||||||||||||
Service charges on deposit accounts
|
4,638 | 5,275 | 8,874 | 9,895 | ||||||||||||
Mortgage banking income
|
835 | 425 | 1,279 | 1,202 | ||||||||||||
Insurance commissions
|
1,062 | 1,061 | 2,204 | 2,526 | ||||||||||||
Equipment rental income
|
6,009 | 6,672 | 12,047 | 13,417 | ||||||||||||
Other income
|
3,327 | 3,012 | 6,298 | 5,701 | ||||||||||||
Investment securities and other investment gains
|
1,142 | 95 | 1,272 | 976 | ||||||||||||
Total noninterest income
|
21,424 | 20,602 | 40,377 | 41,524 | ||||||||||||
Noninterest expense:
|
||||||||||||||||
Salaries and employee benefits
|
19,135 | 18,848 | 37,773 | 37,658 | ||||||||||||
Net occupancy expense
|
2,051 | 1,939 | 4,371 | 4,426 | ||||||||||||
Furniture and equipment expense
|
3,561 | 3,196 | 6,910 | 5,996 | ||||||||||||
Depreciation - leased equipment
|
4,795 | 5,304 | 9,600 | 10,668 | ||||||||||||
Professional fees
|
1,080 | 1,418 | 2,176 | 2,932 | ||||||||||||
Supplies and communication
|
1,316 | 1,338 | 2,710 | 2,707 | ||||||||||||
FDIC and other insurance
|
958 | 1,667 | 2,634 | 3,341 | ||||||||||||
Business development and marketing expense
|
864 | 880 | 1,486 | 1,447 | ||||||||||||
Loan and lease collection and respossession expense
|
1,500 | 3,267 | 2,824 | 4,373 | ||||||||||||
Other expense
|
683 | 1,792 | 3,935 | 3,211 | ||||||||||||
Total noninterest expense
|
35,943 | 39,649 | 74,419 | 76,759 | ||||||||||||
Income before income taxes
|
22,998 | 11,404 | 38,137 | 25,730 | ||||||||||||
Income tax expense
|
8,133 | 3,609 | 12,664 | 8,256 | ||||||||||||
Net income
|
14,865 | 7,795 | 25,473 | 17,474 | ||||||||||||
Preferred stock dividends and discount accretion
|
- | (1,717 | ) | - | (3,428 | ) | ||||||||||
Net income available to common shareholders
|
$ | 14,865 | $ | 6,078 | $ | 25,473 | $ | 14,046 | ||||||||
The Nasdaq Global Select Market Symbol: "SRCE" (CUSIP #336901 10 3)
|
||||||||||||||||
Please contact us at shareholder@1stsource.com
|