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): January 19, 2012
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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: January 19, 2012
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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:
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Immediate Release
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Contact:
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Larry Lentych
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January 19, 2012
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574 235 2000
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Andrea Short
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574 235 2000
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4th 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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Twelve Months Ended
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December 31
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December 31
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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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$ | 4,374,071 | $ | 4,445,281 | |||||||||||||||
Loans and leases
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3,090,543 | 3,070,623 | |||||||||||||||||
Deposits
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3,520,141 | 3,622,745 | |||||||||||||||||
Reserve for loan and lease losses
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81,644 | 86,874 | |||||||||||||||||
Intangible assets
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87,675 | 88,955 | |||||||||||||||||
Common shareholders' equity
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523,918 | 486,383 | |||||||||||||||||
Total shareholders' equity
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523,918 | 486,383 | |||||||||||||||||
AVERAGE BALANCES
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Assets
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$ | 4,421,259 | $ | 4,651,845 | $ | 4,402,554 | $ | 4,543,702 | |||||||||||
Earning assets
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4,102,618 | 4,325,823 | 4,090,297 | 4,207,485 | |||||||||||||||
Investments
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858,941 | 951,074 | 899,895 | 914,253 | |||||||||||||||
Loans and leases
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3,063,248 | 3,087,494 | 3,078,581 | 3,109,508 | |||||||||||||||
Deposits
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3,548,246 | 3,684,587 | 3,555,454 | 3,605,195 | |||||||||||||||
Interest bearing liabilities
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3,247,367 | 3,454,799 | 3,286,246 | 3,402,199 | |||||||||||||||
Common shareholders' equity
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522,267 | 495,808 | 506,939 | 485,793 | |||||||||||||||
Total shareholders' equity
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522,267 | 598,383 | 506,939 | 590,464 | |||||||||||||||
INCOME STATEMENT DATA
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Net interest income
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$ | 37,330 | $ | 39,162 | $ | 148,400 | $ | 147,497 | |||||||||||
Net interest income - FTE
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37,893 | 39,963 | 150,907 | 150,872 | |||||||||||||||
(Recovery of) provision for loan and lease losses
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(396 | ) | 3,443 | 3,129 | 19,207 | ||||||||||||||
Noninterest income
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20,265 | 22,416 | 80,872 | 86,691 | |||||||||||||||
Noninterest expense
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40,787 | 39,936 | 152,354 | 154,505 | |||||||||||||||
Net income
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11,182 | 12,567 | 48,195 | 41,244 | |||||||||||||||
Net income available to common shareholders
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11,182 | 6,127 | 48,195 | 29,655 | |||||||||||||||
PER SHARE DATA
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Basic net income per common share
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$ | 0.45 | $ | 0.25 | $ | 1.96 | $ | 1.21 | |||||||||||
Diluted net income per common share
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0.45 | 0.25 | 1.96 | 1.21 | |||||||||||||||
Common cash dividends declared
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0.16 | 0.16 | 0.64 | 0.61 | |||||||||||||||
Book value per common share
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21.64 | 20.12 | 21.64 | 20.12 | |||||||||||||||
Tangible book value per common share
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18.02 | 16.44 | 18.02 | 16.44 | |||||||||||||||
Market value - High
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26.06 | 20.75 | 26.06 | 20.75 | |||||||||||||||
Market value - Low
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19.91 | 17.01 | 17.86 | 14.25 | |||||||||||||||
Basic weighted average common shares outstanding
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24,213,834 | 24,186,469 | 24,237,924 | 24,232,092 | |||||||||||||||
Diluted weighted average common shares outstanding
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24,224,751 | 24,195,208 | 24,247,456 | 24,239,194 | |||||||||||||||
KEY RATIOS
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Return on average assets
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1.00 | % |
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1.07 | % |
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1.09 | % |
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0.91 | % | ||||||||
Return on average common shareholders' equity
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8.49 | 4.90 | 9.51 | 6.10 | |||||||||||||||
Average common shareholders' equity to average assets
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11.81 | 10.66 | 11.51 | 10.69 | |||||||||||||||
End of period tangible common equity to tangible assets
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10.18 | 9.12 | 10.18 | 9.12 | |||||||||||||||
Risk-based capital - Tier 1
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15.21 | 14.05 | 15.21 | 14.05 | |||||||||||||||
Risk-based capital - Total
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16.51 | 15.34 | 16.51 | 15.34 | |||||||||||||||
Net interest margin
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3.66 | 3.67 | 3.69 | 3.59 | |||||||||||||||
Efficiency: expense to revenue
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68.60 | 62.10 | 64.35 | 63.26 | |||||||||||||||
Net charge-offs to average loans and leases
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0.28 | 0.78 | 0.27 | 0.66 | |||||||||||||||
Loan and lease loss reserve to loans and leases
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2.64 | 2.83 | 2.64 | 2.83 | |||||||||||||||
Nonperforming assets to loans and leases
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2.28 | 2.81 | 2.28 | 2.81 | |||||||||||||||
ASSET QUALITY
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Loans and leases past due 90 days or more
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$ | 460 | $ | 361 | |||||||||||||||
Nonaccrual loans and leases
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56,440 | 74,853 | |||||||||||||||||
Other real estate
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7,621 | 6,392 | |||||||||||||||||
Former bank premises held for sale
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1,134 | 1,200 | |||||||||||||||||
Repossessions
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6,792 | 5,670 | |||||||||||||||||
Equipment owned under operating leases
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29 | 236 | |||||||||||||||||
Total nonperforming assets
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72,476 | 88,712 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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(Unaudited - Dollars in thousands)
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December 31, 2011
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December 31, 2010
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ASSETS
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Cash and due from banks
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$ | 61,406 | $ | 62,313 | ||||
Federal funds sold and interest bearing deposits with other banks
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52,921 | 34,559 | ||||||
Investment securities available-for-sale
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(amortized cost of $853,204 and $952,101 at December 31, 2011 and 2010, respectively)
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883,000 | 969,018 | ||||||
Other investments
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18,974 | 21,343 | ||||||
Trading account securities
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132 | 138 | ||||||
Mortgages held for sale
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12,644 | 32,599 | ||||||
Loans and leases, net of unearned discount:
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Commercial and agricultural loans
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545,570 | 530,228 | ||||||
Auto, light truck and environmental equipment
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435,965 | 396,500 | ||||||
Medium and heavy duty truck
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159,796 | 162,824 | ||||||
Aircraft financing
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620,782 | 614,357 | ||||||
Construction equipment financing
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261,204 | 285,634 | ||||||
Commercial real estate
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545,457 | 594,729 | ||||||
Residential real estate
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423,606 | 390,951 | ||||||
Consumer loans
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98,163 | 95,400 | ||||||
Total loans and leases
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3,090,543 | 3,070,623 | ||||||
Reserve for loan and lease losses
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(81,644 | ) | (86,874 | ) | ||||
Net loans and leases
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3,008,899 | 2,983,749 | ||||||
Equipment owned under operating leases, net
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69,551 | 78,138 | ||||||
Net premises and equipment
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39,857 | 33,881 | ||||||
Goodwill and intangible assets
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87,675 | 88,955 | ||||||
Accrued income and other assets
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139,012 | 140,588 | ||||||
Total assets
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$ | 4,374,071 | $ | 4,445,281 | ||||
LIABILITIES
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Deposits:
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Noninterest bearing
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$ | 580,101 | $ | 524,564 | ||||
Interest bearing
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2,940,040 | 3,098,181 | ||||||
Total deposits
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3,520,141 | 3,622,745 | ||||||
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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106,991 | 136,028 | ||||||
Other short-term borrowings
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18,243 | 19,961 | ||||||
Total short-term borrowings
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125,234 | 155,989 | ||||||
Long-term debt and mandatorily redeemable securities
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37,156 | 24,816 | ||||||
Subordinated notes
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89,692 | 89,692 | ||||||
Accrued expenses and other liabilities
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77,930 | 65,656 | ||||||
Total liabilities
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3,850,153 | 3,958,898 | ||||||
SHAREHOLDERS' EQUITY
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Preferred stock; no par value
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- | - | ||||||
Common stock; no par value
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346,535 | 350,282 | ||||||
Retained earnings
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190,261 | 157,875 | ||||||
Cost of common stock in treasury
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(31,389 | ) | (32,284 | ) | ||||
Accumulated other comprehensive income
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18,511 | 10,510 | ||||||
Total shareholders' equity
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523,918 | 486,383 | ||||||
Total liabilities and shareholders' equity
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$ | 4,374,071 | $ | 4,445,281 |
CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited - Dollars in thousands)
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Three Months Ended
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Twelve Months Ended
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December 31,
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December 31,
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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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$ | 40,236 | $ | 44,435 | $ | 163,986 | $ | 173,526 | ||||||||
Investment securities, taxable
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4,445 | 4,855 | 18,533 | 20,466 | ||||||||||||
Investment securities, tax-exempt
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889 | 1,315 | 4,013 | 5,573 | ||||||||||||
Other
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284 | 318 | 991 | 1,061 | ||||||||||||
Total interest income
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45,854 | 50,923 | 187,523 | 200,626 | ||||||||||||
Interest expense:
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Deposits
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6,489 | 9,837 | 30,762 | 44,605 | ||||||||||||
Short-term borrowings
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60 | 187 | 300 | 800 | ||||||||||||
Subordinated notes
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1,647 | 1,647 | 6,589 | 6,589 | ||||||||||||
Long-term debt and mandatorily redeemable securities
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328 | 90 | 1,472 | 1,135 | ||||||||||||
Total interest expense
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8,524 | 11,761 | 39,123 | 53,129 | ||||||||||||
Net interest income
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37,330 | 39,162 | 148,400 | 147,497 | ||||||||||||
(Recovery of) provision for loan and lease losses
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(396 | ) | 3,443 | 3,129 | 19,207 | |||||||||||
Net interest income after (recovery of)
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provision for loan and lease losses
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37,726 | 35,719 | 145,271 | 128,290 | ||||||||||||
Noninterest income:
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Trust fees
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4,022 | 4,161 | 16,327 | 15,838 | ||||||||||||
Service charges on deposit accounts
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4,866 | 4,510 | 18,488 | 19,323 | ||||||||||||
Mortgage banking income
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1,504 | 2,467 | 3,839 | 6,218 | ||||||||||||
Insurance commissions
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1,377 | 1,368 | 4,793 | 5,074 | ||||||||||||
Equipment rental income
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5,500 | 6,124 | 23,361 | 26,036 | ||||||||||||
Other income
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3,283 | 3,552 | 12,665 | 11,909 | ||||||||||||
Investment securities and other investment (losses) gains
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(287 | ) | 234 | 1,399 | 2,293 | |||||||||||
Total noninterest income
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20,265 | 22,416 | 80,872 | 86,691 | ||||||||||||
Noninterest expense:
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Salaries and employee benefits
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20,012 | 19,177 | 77,261 | 75,815 | ||||||||||||
Net occupancy expense
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2,106 | 2,162 | 8,714 | 8,788 | ||||||||||||
Furniture and equipment expense
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3,701 | 3,320 | 14,130 | 12,543 | ||||||||||||
Depreciation - leased equipment
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4,400 | 4,874 | 18,650 | 20,715 | ||||||||||||
Professional fees
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2,006 | 1,858 | 5,508 | 6,353 | ||||||||||||
Supplies and communication
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1,431 | 1,405 | 5,453 | 5,499 | ||||||||||||
FDIC and other insurance
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913 | 1,495 | 4,421 | 6,256 | ||||||||||||
Business development and marketing expense
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1,578 | 1,482 | 4,032 | 3,774 | ||||||||||||
Loan and lease collection and repossession expense
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2,513 | 405 | 6,724 | 6,227 | ||||||||||||
Other expense
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2,127 | 3,758 | 7,461 | 8,535 | ||||||||||||
Total noninterest expense
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40,787 | 39,936 | 152,354 | 154,505 | ||||||||||||
Income before income taxes
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17,204 | 18,199 | 73,789 | 60,476 | ||||||||||||
Income tax expense
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6,022 | 5,632 | 25,594 | 19,232 | ||||||||||||
Net income
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11,182 | 12,567 | 48,195 | 41,244 | ||||||||||||
Preferred stock dividends and discount accretion
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- | (6,440 | ) | - | (11,589 | ) | ||||||||||
Net income available to common shareholders
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$ | 11,182 | $ | 6,127 | $ | 48,195 | $ | 29,655 | ||||||||
The NASDAQ Global Select National Market Symbol: "SRCE" (CUSIP #336901 10 3)
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Please contact us at shareholder@1stsource.com
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