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): October 20, 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: October 20, 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: October 20, 2011
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/s/ANDREA G. SHORT
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Andrea G. Short
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Acting Treasurer and Chief Financial Officer
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Acting Principal Accounting Officer
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Exhibit 99.1 | |||
For:
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Immediate Release
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Contact:
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Andrea Short
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October 20, 2011
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574-235-2000
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1st SOURCE CORPORATION
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3rd QUARTER 2011 FINANCIAL HIGHLIGHTS
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(Unaudited - Dollars in thousands, except for per share data)
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2011
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2010
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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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$ | 4,305,941 | $ | 4,532,313 | ||||||||||||
Loans and leases
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3,083,294 | 3,112,179 | ||||||||||||||
Deposits
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3,447,585 | 3,566,194 | ||||||||||||||
Reserve for loan and lease losses
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84,210 | 89,509 | ||||||||||||||
Intangible assets
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88,000 | 89,287 | ||||||||||||||
Common shareholders' equity
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516,879 | 490,406 | ||||||||||||||
Total shareholders' equity
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516,879 | 596,323 | ||||||||||||||
AVERAGE BALANCES
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Assets
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$ | 4,342,406 | $ | 4,518,393 | $ | 4,396,250 | $ | 4,507,258 | ||||||||
Earning assets
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4,033,723 | 4,182,332 | 4,086,144 | 4,167,605 | ||||||||||||
Investments
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873,753 | 895,743 | 913,696 | 901,844 | ||||||||||||
Loans and leases
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3,096,168 | 3,129,445 | 3,083,747 | 3,116,927 | ||||||||||||
Deposits
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3,477,448 | 3,568,428 | 3,557,883 | 3,578,440 | ||||||||||||
Interest bearing liabilities
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3,211,939 | 3,357,917 | 3,299,348 | 3,384,473 | ||||||||||||
Common shareholders' equity
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513,556 | 492,025 | 501,774 | 482,418 | ||||||||||||
Total shareholders' equity
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513,556 | 597,728 | 501,774 | 587,795 | ||||||||||||
INCOME STATEMENT DATA
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Net interest income
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$ | 36,626 | $ | 37,184 | $ | 111,070 | $ | 108,335 | ||||||||
Net interest income - FTE
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37,216 | 38,019 | 113,014 | 110,909 | ||||||||||||
Provision for loan and lease losses
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1,260 | 5,578 | 3,525 | 15,764 | ||||||||||||
Noninterest income
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20,230 | 22,751 | 60,607 | 64,275 | ||||||||||||
Noninterest expense
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37,148 | 37,810 | 111,567 | 114,569 | ||||||||||||
Net income
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11,540 | 11,203 | 37,013 | 28,677 | ||||||||||||
Net income available to common shareholders
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11,540 | 9,482 | 37,013 | 23,528 | ||||||||||||
PER SHARE DATA
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Basic net income per common share
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$ | 0.47 | $ | 0.39 | $ | 1.51 | $ | 0.96 | ||||||||
Diluted net income per common share
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0.47 | 0.39 | 1.51 | 0.96 | ||||||||||||
Common cash dividends declared
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0.16 | 0.15 | 0.48 | 0.45 | ||||||||||||
Book value per common share
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21.35 | 20.26 | 21.35 | 20.26 | ||||||||||||
Tangible book value per common share
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17.71 | 16.57 | 17.71 | 16.57 | ||||||||||||
Market value - High
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24.00 | 18.99 | 24.00 | 20.36 | ||||||||||||
Market value - Low
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19.36 | 15.98 | 17.86 | 14.25 | ||||||||||||
Basic weighted average common shares outstanding
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24,213,063 | 24,247,236 | 24,246,041 | 24,247,468 | ||||||||||||
Diluted weighted average common shares outstanding
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24,223,432 | 24,253,883 | 24,255,357 | 24,254,026 | ||||||||||||
KEY RATIOS
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Return on average assets
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1.05 |
%
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0.98 |
%
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1.13 |
%
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0.85 | % | ||||||||
Return on average common shareholders' equity
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8.92 | 7.65 | 9.86 | 6.52 | ||||||||||||
Average common shareholders' equity to average assets
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11.83 | 10.89 | 11.41 | 10.70 | ||||||||||||
End of period tangible common equity to tangible assets
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10.17 | 9.03 | 10.17 | 9.03 | ||||||||||||
Risk-based capital - Tier 1
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14.96 | 16.86 | 14.96 | 16.86 | ||||||||||||
Risk-based capital - Total
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16.26 | 18.15 | 16.26 | 18.15 | ||||||||||||
Net interest margin
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3.66 | 3.61 | 3.70 | 3.56 | ||||||||||||
Efficiency: expense to revenue
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63.25 | 60.70 | 62.89 | 63.68 | ||||||||||||
Net charge-offs to average loans and leases
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0.26 | 0.52 | 0.27 | 0.62 | ||||||||||||
Loan and lease loss reserve to loans and leases
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2.73 | 2.88 | 2.73 | 2.88 | ||||||||||||
Nonperforming assets to loans and leases
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2.43 | 3.09 | 2.43 | 3.09 | ||||||||||||
ASSET QUALITY
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Loans and leases past due 90 days or more
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$ | 624 | $ | 1,104 | ||||||||||||
Nonaccrual loans and leases
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61,549 | 79,094 | ||||||||||||||
Other real estate
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8,032 | 7,010 | ||||||||||||||
Former bank premises held for sale
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1,514 | 2,190 | ||||||||||||||
Repossessions
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4,918 | 9,665 | ||||||||||||||
Equipment owned under operating leases
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389 | 311 | ||||||||||||||
Total nonperforming assets
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77,026 | 99,374 |
1st SOURCE CORPORATION
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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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(Unaudited - Dollars in thousands)
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September 30, 2011
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September 30, 2010
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ASSETS
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Cash and due from banks
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$ | 57,986 | $ | 60,395 | ||||
Federal funds sold and
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interest bearing deposits with other banks
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25,064 | 78,047 | ||||||
Investment securities available-for-sale
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(amortized cost of $820,336 and $848,409 at
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September 30, 2011 and 2010, respectively)
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850,507 | 874,514 | ||||||
Other investments
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18,974 | 22,047 | ||||||
Trading account securities
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119 | 125 | ||||||
Mortgages held for sale
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13,219 | 114,947 | ||||||
Loans and leases, net of unearned discount:
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Commercial and agricultural loans
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557,392 | 535,874 | ||||||
Auto, light truck and environmental equipment
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442,127 | 397,297 | ||||||
Medium and heavy duty truck
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152,703 | 174,459 | ||||||
Aircraft financing
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613,706 | 620,996 | ||||||
Construction equipment financing
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260,241 | 304,035 | ||||||
Commercial real estate
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556,287 | 584,108 | ||||||
Residential real estate
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404,063 | 395,334 | ||||||
Consumer loans
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96,775 | 100,076 | ||||||
Total loans and leases
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3,083,294 | 3,112,179 | ||||||
Reserve for loan and lease losses
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(84,210 | ) | (89,509 | ) | ||||
Net loans and leases
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2,999,084 | 3,022,670 | ||||||
Equipment owned under operating leases, net
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75,096 | 84,430 | ||||||
Net premises and equipment
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40,958 | 36,133 | ||||||
Goodwill and intangible assets
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88,000 | 89,287 | ||||||
Accrued income and other assets
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136,934 | 149,718 | ||||||
Total assets
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$ | 4,305,941 | $ | 4,532,313 | ||||
LIABILITIES
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Deposits:
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Noninterest bearing
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$ | 560,932 | $ | 495,778 | ||||
Interest bearing
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2,886,653 | 3,070,416 | ||||||
Total deposits
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3,447,585 | 3,566,194 | ||||||
Short-term borrowings:
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Federal funds purchased and securities
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sold under agreements to repurchase
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124,779 | 145,887 | ||||||
Other short-term borrowings
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16,159 | 26,337 | ||||||
Total short-term borrowings
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140,938 | 172,224 | ||||||
Long-term debt and mandatorily redeemable securities
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37,064 | 34,987 | ||||||
Subordinated notes
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89,692 | 89,692 | ||||||
Accrued expenses and other liabilities
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73,783 | 72,893 | ||||||
Total liabilities
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3,789,062 | 3,935,990 | ||||||
SHAREHOLDERS' EQUITY
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Preferred stock; no par value
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- | 105,917 | ||||||
Common stock; no par value
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346,535 | 350,278 | ||||||
Retained earnings
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183,007 | 155,633 | ||||||
Cost of common stock in treasury
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(31,408 | ) | (31,723 | ) | ||||
Accumulated other comprehensive income
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18,745 | 16,218 | ||||||
Total shareholders' equity
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516,879 | 596,323 | ||||||
Total liabilities and shareholders' equity
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$ | 4,305,941 | $ | 4,532,313 |
1st SOURCE CORPORATION
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CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited - Dollars in thousands)
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
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2011
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2010
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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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$ | 40,741 | $ | 43,722 | $ | 123,750 | $ | 129,091 | ||||||||
Investment securities, taxable
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4,694 | 4,931 | 14,088 | 15,611 | ||||||||||||
Investment securities, tax-exempt
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934 | 1,369 | 3,124 | 4,258 | ||||||||||||
Other
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217 | 219 | 707 | 743 | ||||||||||||
Total interest income
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46,586 | 50,241 | 141,669 | 149,703 | ||||||||||||
Interest expense:
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Deposits
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7,756 | 10,790 | 24,273 | 34,768 | ||||||||||||
Short-term borrowings
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77 | 219 | 240 | 613 | ||||||||||||
Subordinated notes
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1,647 | 1,648 | 4,942 | 4,942 | ||||||||||||
Long-term debt and mandatorily redeemable securities
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480 | 400 | 1,144 | 1,045 | ||||||||||||
Total interest expense
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9,960 | 13,057 | 30,599 | 41,368 | ||||||||||||
Net interest income
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36,626 | 37,184 | 111,070 | 108,335 | ||||||||||||
Provision for loan and lease losses
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1,260 | 5,578 | 3,525 | 15,764 | ||||||||||||
Net interest income after provision for loan and lease losses
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35,366 | 31,606 | 107,545 | 92,571 | ||||||||||||
Noninterest income:
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Trust fees
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3,902 | 3,870 | 12,305 | 11,677 | ||||||||||||
Service charges on deposit accounts
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4,748 | 4,918 | 13,622 | 14,813 | ||||||||||||
Mortgage banking income
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1,056 | 2,549 | 2,335 | 3,751 | ||||||||||||
Insurance commissions
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1,212 | 1,180 | 3,416 | 3,706 | ||||||||||||
Equipment rental income
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5,814 | 6,495 | 17,861 | 19,912 | ||||||||||||
Other income
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3,084 | 2,656 | 9,382 | 8,357 | ||||||||||||
Investment securities and other investment gains
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414 | 1,083 | 1,686 | 2,059 | ||||||||||||
Total noninterest income
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20,230 | 22,751 | 60,607 | 64,275 | ||||||||||||
Noninterest expense:
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Salaries and employee benefits
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19,476 | 18,980 | 57,249 | 56,638 | ||||||||||||
Net occupancy expense
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2,237 | 2,200 | 6,608 | 6,626 | ||||||||||||
Furniture and equipment expense
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3,519 | 3,227 | 10,429 | 9,223 | ||||||||||||
Depreciation - leased equipment
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4,650 | 5,173 | 14,250 | 15,841 | ||||||||||||
Professional fees
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1,326 | 1,563 | 3,502 | 4,495 | ||||||||||||
Supplies and communication
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1,312 | 1,387 | 4,022 | 4,094 | ||||||||||||
FDIC and other insurance
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874 | 1,420 | 3,508 | 4,761 | ||||||||||||
Business development and marketing expense
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968 | 845 | 2,454 | 2,292 | ||||||||||||
Loan and lease collection and respossession expense
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1,387 | 1,449 | 4,211 | 5,822 | ||||||||||||
Other expense
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1,399 | 1,566 | 5,334 | 4,777 | ||||||||||||
Total noninterest expense
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37,148 | 37,810 | 111,567 | 114,569 | ||||||||||||
Income before income taxes
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18,448 | 16,547 | 56,585 | 42,277 | ||||||||||||
Income tax expense
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6,908 | 5,344 | 19,572 | 13,600 | ||||||||||||
Net income
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11,540 | 11,203 | 37,013 | 28,677 | ||||||||||||
Preferred stock dividends and discount accretion
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- | (1,721 | ) | - | (5,149 | ) | ||||||||||
Net income available to common shareholders
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$ | 11,540 | $ | 9,482 | $ | 37,013 | $ | 23,528 | ||||||||
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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