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): July 26, 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: July 26, 2012
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/s/CHRISTOPHER J. MURPHY III | |
Christopher J. Murphy III | ||
Chairman of the Board, President and CEO | ||
Date: July 26, 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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For:
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Immediate Release
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Contact:
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Larry Lentych
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July 26, 2012
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Andrea Short
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574 235 2000
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2nd QUARTER 2012 FINANCIAL HIGHLIGHTS
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(Unaudited - Dollars in thousands, except for per share data)
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2012
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2011
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2012
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2011
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END OF PERIOD BALANCES
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Assets
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$ | 4,486,584 | $ | 4,354,951 | ||||||||
Loans and leases
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3,270,592 | 3,118,157 | ||||||||||
Deposits
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3,586,017 | 3,523,316 | ||||||||||
Reserve for loan and lease losses
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83,299 | 85,010 | ||||||||||
Intangible assets
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88,135 | 88,325 | ||||||||||
Common shareholders' equity
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542,264 | 505,594 | ||||||||||
AVERAGE BALANCES
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Assets
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$ | 4,481,703 | $ | 4,427,034 | $ | 4,421,182 | $ | 4,423,618 | ||||
Earning assets
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4,180,012 | 4,116,791 | 4,114,421 | 4,112,789 | ||||||||
Investments
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884,062 | 911,678 | 886,895 | 933,999 | ||||||||
Loans and leases
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3,209,539 | 3,100,598 | 3,149,704 | 3,077,434 | ||||||||
Deposits
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3,588,201 | 3,597,533 | 3,538,547 | 3,598,767 | ||||||||
Interest bearing liabilities
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3,271,250 | 3,338,983 | 3,224,412 | 3,343,777 | ||||||||
Common shareholders' equity
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540,330 | 498,863 | 536,529 | 495,785 | ||||||||
INCOME STATEMENT DATA
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Net interest income
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$ | 37,975 | $ | 37,584 | $ | 75,360 | $ | 74,444 | ||||
Net interest income - FTE
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38,497 | 38,232 | 76,420 | 75,798 | ||||||||
Provision for loan and lease losses
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2,055 | 67 | 4,309 | 2,265 | ||||||||
Noninterest income
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19,790 | 21,424 | 40,313 | 40,377 | ||||||||
Noninterest expense
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36,578 | 35,943 | 74,626 | 74,419 | ||||||||
Net income
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12,567 | 14,865 | 24,282 | 25,473 | ||||||||
PER SHARE DATA
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Basic net income per common share
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$ | 0.51 | $ | 0.61 | $ | 0.99 | $ | 1.04 | ||||
Diluted net income per common share
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0.51 | 0.61 | 0.99 | 1.04 | ||||||||
Common cash dividends declared
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0.16 | 0.16 | 0.32 | 0.32 | ||||||||
Book value per common share
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22.34 | 20.88 | 22.34 | 20.88 | ||||||||
Tangible book value per common share
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18.71 | 17.23 | 18.71 | 17.23 | ||||||||
Market value - High
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24.86 | 21.33 | 26.79 | 21.33 | ||||||||
Market value - Low
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20.51 | 19.10 | 20.51 | 17.86 | ||||||||
Basic weighted average common shares outstanding
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24,263,881 | 24,254,334 | 24,261,649 | 24,262,803 | ||||||||
Diluted weighted average common shares outstanding
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24,273,898 | 24,263,596 | 24,272,423 | 24,271,527 | ||||||||
KEY RATIOS
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Return on average assets
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1.13 |
%
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1.35 |
%
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1.10 |
%
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1.16 | % | ||||
Return on average common shareholders' equity
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9.35 | 11.95 | 9.10 | 10.36 | ||||||||
Average common shareholders' equity to average assets
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12.06 | 11.27 | 12.14 | 11.21 | ||||||||
End of period tangible common equity to tangible assets
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10.32 | 9.78 | 10.32 | 9.78 | ||||||||
Risk-based capital - Tier 1
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14.92 | 14.52 | 14.92 | 14.52 | ||||||||
Risk-based capital - Total
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16.23 | 15.82 | 16.23 | 15.82 | ||||||||
Net interest margin
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3.70 | 3.72 | 3.74 | 3.72 | ||||||||
Efficiency: expense to revenue
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61.31 | 59.10 | 62.65 | 62.70 | ||||||||
Net charge-offs to average loans and leases
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0.14 | 0.16 | 0.17 | 0.27 | ||||||||
Loan and lease loss reserve to loans and leases
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2.55 | 2.73 | 2.55 | 2.73 | ||||||||
Nonperforming assets to loans and leases
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1.67 | 2.39 | 1.67 | 2.39 | ||||||||
ASSET QUALITY
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Loans and leases past due 90 days or more
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$ | 439 | $ | 337 | ||||||||
Nonaccrual loans and leases
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45,777 | 64,920 | ||||||||||
Other real estate
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7,257 | 7,878 | ||||||||||
Former bank premises held for sale
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1,134 | 1,580 | ||||||||||
Repossessions
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1,177 | 1,302 | ||||||||||
Equipment owned under operating leases
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9 | 474 | ||||||||||
Total nonperforming assets
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55,793 | 76,491 |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
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(Unaudited - Dollars in thousands)
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June 30, 2012
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June 30, 2011
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ASSETS
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Cash and due from banks
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$ | 88,729 | $ | 59,249 | |||
Federal funds sold and
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interest bearing deposits with other banks
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1,351 | 100 | |||||
Investment securities available-for-sale
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(amortized cost of $821,323 and $878,401 at
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June 30, 2012 and 2011, respectively)
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852,704 | 902,742 | |||||
Other investments
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19,934 | 18,974 | |||||
Trading account securities
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138 | 143 | |||||
Mortgages held for sale
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17,837 | 7,805 | |||||
Loans and leases, net of unearned discount:
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Commercial and agricultural loans
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555,986 | 551,820 | |||||
Auto, light truck and environmental equipment
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508,493 | 473,925 | |||||
Medium and heavy duty truck
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172,305 | 155,423 | |||||
Aircraft financing
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662,184 | 607,567 | |||||
Construction equipment financing
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280,715 | 274,968 | |||||
Commercial real estate
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543,692 | 568,226 | |||||
Residential real estate
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441,587 | 390,389 | |||||
Consumer loans
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105,630 | 95,839 | |||||
Total loans and leases
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3,270,592 | 3,118,157 | |||||
Reserve for loan and lease losses
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(83,299 | ) | (85,010 | ) | |||
Net loans and leases
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3,187,293 | 3,033,147 | |||||
Equipment owned under operating leases, net
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58,264 | 77,102 | |||||
Net premises and equipment
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40,820 | 36,885 | |||||
Goodwill and intangible assets
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88,135 | 88,325 | |||||
Accrued income and other assets
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131,379 | 130,479 | |||||
Total assets
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$ | 4,486,584 | $ | 4,354,951 | |||
LIABILITIES
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Deposits:
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Noninterest bearing
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$ | 608,357 | $ | 516,189 | |||
Interest bearing
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2,977,660 | 3,007,127 | |||||
Total deposits
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3,586,017 | 3,523,316 | |||||
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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117,461 | 108,799 | |||||
Other short-term borrowings
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16,467 | 21,324 | |||||
Total short-term borrowings
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133,928 | 130,123 | |||||
Long-term debt and mandatorily redeemable securities
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65,506 | 36,785 | |||||
Subordinated notes
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89,692 | 89,692 | |||||
Accrued expenses and other liabilities
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69,177 | 69,441 | |||||
Total liabilities
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3,944,320 | 3,849,357 | |||||
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 | 346,535 | |||||
Retained earnings
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206,789 | 175,374 | |||||
Cost of common stock in treasury
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(30,447 | ) | (31,437 | ) | |||
Accumulated other comprehensive income
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19,387 | 15,122 | |||||
Total shareholders' equity
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542,264 | 505,594 | |||||
Total liabilities and shareholders' equity
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$ | 4,486,584 | $ | 4,354,951 |
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CONSOLIDATED STATEMENTS OF INCOME
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(Unaudited - Dollars in thousands)
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Three Months Ended
June 30,
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Six Months Ended
June 30,
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2012
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2011
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2012
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2011
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Interest income:
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Loans and leases
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$ | 40,318 | $ | 41,710 | $ | 80,214 | $ | 83,009 | ||||||||
Investment securities, taxable
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4,334 | 4,912 | 8,661 | 9,394 | ||||||||||||
Investment securities, tax-exempt
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848 | 1,004 | 1,700 | 2,190 | ||||||||||||
Other
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231 | 247 | 457 | 490 | ||||||||||||
Total interest income
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45,731 | 47,873 | 91,032 | 95,083 | ||||||||||||
Interest expense:
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Deposits
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5,704 | 8,162 | 11,449 | 16,517 | ||||||||||||
Short-term borrowings
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47 | 74 | 100 | 163 | ||||||||||||
Subordinated notes
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1,648 | 1,648 | 3,295 | 3,295 | ||||||||||||
Long-term debt and mandatorily redeemable securities
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357 | 405 | 828 | 664 | ||||||||||||
Total interest expense
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7,756 | 10,289 | 15,672 | 20,639 | ||||||||||||
Net interest income
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37,975 | 37,584 | 75,360 | 74,444 | ||||||||||||
Provision for loan and lease losses
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2,055 | 67 | 4,309 | 2,265 | ||||||||||||
Net interest income after provision for loan and lease losses
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35,920 | 37,517 | 71,051 | 72,179 | ||||||||||||
Noninterest income:
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Trust fees
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4,379 | 4,411 | 8,352 | 8,403 | ||||||||||||
Service charges on deposit accounts
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4,815 | 4,638 | 9,320 | 8,874 | ||||||||||||
Mortgage banking income
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1,502 | 835 | 3,444 | 1,279 | ||||||||||||
Insurance commissions
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1,211 | 1,062 | 2,568 | 2,204 | ||||||||||||
Equipment rental income
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4,666 | 6,009 | 10,016 | 12,047 | ||||||||||||
Other income
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3,209 | 3,327 | 6,210 | 6,298 | ||||||||||||
Investment securities and other investment gains
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8 | 1,142 | 403 | 1,272 | ||||||||||||
Total noninterest income
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19,790 | 21,424 | 40,313 | 40,377 | ||||||||||||
Noninterest expense:
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Salaries and employee benefits
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20,370 | 19,135 | 40,686 | 37,773 | ||||||||||||
Net occupancy expense
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1,848 | 2,051 | 4,008 | 4,371 | ||||||||||||
Furniture and equipment expense
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3,831 | 3,561 | 7,338 | 6,910 | ||||||||||||
Depreciation - leased equipment
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3,803 | 4,795 | 8,114 | 9,600 | ||||||||||||
Professional fees
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1,449 | 1,080 | 2,847 | 2,176 | ||||||||||||
Supplies and communication
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1,385 | 1,316 | 2,778 | 2,710 | ||||||||||||
FDIC and other insurance
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854 | 958 | 1,803 | 2,634 | ||||||||||||
Business development and marketing expense
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1,050 | 864 | 1,917 | 1,486 | ||||||||||||
Loan and lease collection and repossession expense
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979 | 1,500 | 2,480 | 2,824 | ||||||||||||
Other expense
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1,009 | 683 | 2,655 | 3,935 | ||||||||||||
Total noninterest expense
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36,578 | 35,943 | 74,626 | 74,419 | ||||||||||||
Income before income taxes
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19,132 | 22,998 | 36,738 | 38,137 | ||||||||||||
Income tax expense
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6,565 | 8,133 | 12,456 | 12,664 | ||||||||||||
Net income
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$ | 12,567 | $ | 14,865 | $ | 24,282 | $ | 25,473 | ||||||||
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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