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): January 22, 2014 | ||
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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: January 22, 2014 | /s/ CHRISTOPHER J. MURPHY III | |
Christopher J. Murphy III | ||
Chairman of the Board, President and CEO | ||
Date: January 22, 2014 | /s/ ANDREA G. SHORT | |
Andrea G. Short | ||
Treasurer and Chief Financial Officer | ||
Principal Accounting Officer |
For: | Immediate Release | Contact: | Andrea Short |
January 22, 2014 | 574-235-2000 |
1st SOURCE CORPORATION | |||||||||||||||||
4th QUARTER 2013 FINANCIAL HIGHLIGHTS | |||||||||||||||||
(Unaudited - Dollars in thousands, except per share data) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||
December 31, | December 31, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
END OF PERIOD BALANCES | |||||||||||||||||
Assets | $ | 4,722,826 | $ | 4,550,693 | |||||||||||||
Loans and leases | 3,549,324 | 3,327,553 | |||||||||||||||
Deposits | 3,653,650 | 3,624,347 | |||||||||||||||
Reserve for loan and lease losses | 83,505 | 83,311 | |||||||||||||||
Intangible assets | 86,343 | 87,502 | |||||||||||||||
Common shareholders' equity | 585,378 | 558,655 | |||||||||||||||
AVERAGE BALANCES | |||||||||||||||||
Assets | $ | 4,649,245 | $ | 4,548,602 | $ | 4,607,949 | $ | 4,472,879 | |||||||||
Earning assets | 4,362,005 | 4,260,643 | 4,325,907 | 4,174,443 | |||||||||||||
Investments | 837,180 | 900,882 | 840,798 | 882,392 | |||||||||||||
Loans and leases | 3,487,900 | 3,268,948 | 3,433,938 | 3,209,490 | |||||||||||||
Deposits | 3,720,299 | 3,635,800 | 3,700,509 | 3,574,211 | |||||||||||||
Interest bearing liabilities | 3,281,486 | 3,265,521 | 3,286,558 | 3,239,530 | |||||||||||||
Common shareholders' equity | 587,442 | 559,307 | 575,662 | 545,631 | |||||||||||||
INCOME STATEMENT DATA | |||||||||||||||||
Net interest income | $ | 39,034 | $ | 38,509 | $ | 156,817 | $ | 151,776 | |||||||||
Net interest income - FTE | 39,495 | 39,004 | 158,643 | 153,844 | |||||||||||||
(Recovery of) provision for loan and lease losses | (859 | ) | 793 | 772 | 5,752 | ||||||||||||
Noninterest income | 17,985 | 20,574 | 77,212 | 81,192 | |||||||||||||
Noninterest expense | 38,590 | 39,717 | 149,314 | 151,536 | |||||||||||||
Net income | 13,716 | 12,346 | 54,958 | 49,633 | |||||||||||||
PER SHARE DATA | |||||||||||||||||
Basic net income per common share | $ | 0.56 | $ | 0.50 | $ | 2.23 | $ | 2.02 | |||||||||
Diluted net income per common share | 0.56 | 0.50 | 2.23 | 2.02 | |||||||||||||
Common cash dividends declared | 0.17 | 0.17 | 0.68 | 0.66 | |||||||||||||
Book value per common share | 24.07 | 23.04 | 24.07 | 23.04 | |||||||||||||
Tangible book value per common share | 20.52 | 19.43 | 20.52 | 19.43 | |||||||||||||
Market value - High | 32.92 | 23.15 | 32.92 | 26.79 | |||||||||||||
Market value - Low | 25.64 | 19.70 | 21.88 | 19.70 | |||||||||||||
Basic weighted average common shares outstanding | 24,322,516 | 24,270,198 | 24,344,623 | 24,267,471 | |||||||||||||
Diluted weighted average common shares outstanding | 24,323,158 | 24,279,465 | 24,345,209 | 24,277,328 | |||||||||||||
KEY RATIOS | |||||||||||||||||
Return on average assets | 1.17 | % | 1.08 | % | 1.19 | % | 1.11 | % | |||||||||
Return on average common shareholders' equity | 9.26 | 8.78 | 9.55 | 9.10 | |||||||||||||
Average common shareholders' equity to average assets | 12.64 | 12.30 | 12.49 | 12.20 | |||||||||||||
End of period tangible common equity to tangible assets | 10.76 | 10.56 | 10.76 | 10.56 | |||||||||||||
Risk-based capital - Tier 1 | 14.54 | 14.26 | 14.54 | 14.26 | |||||||||||||
Risk-based capital - Total | 15.86 | 15.57 | 15.86 | 15.57 | |||||||||||||
Net interest margin | 3.59 | 3.64 | 3.67 | 3.69 | |||||||||||||
Efficiency: expense to revenue | 66.25 | 65.95 | 62.44 | 63.33 | |||||||||||||
Net charge offs to average loans and leases | 0.02 | 0.12 | 0.02 | 0.13 | |||||||||||||
Loan and lease loss reserve to loans and leases | 2.35 | 2.50 | 2.35 | 2.50 | |||||||||||||
Nonperforming assets to loans and leases | 1.29 | 1.25 | 1.29 | 1.25 | |||||||||||||
ASSET QUALITY | |||||||||||||||||
Loans and leases past due 90 days or more | $ | 287 | $ | 442 | |||||||||||||
Nonaccrual loans and leases | 36,707 | 36,417 | |||||||||||||||
Other real estate | 4,539 | 4,311 | |||||||||||||||
Former bank premises held for sale | 951 | 1,034 | |||||||||||||||
Repossessions | 4,262 | 63 | |||||||||||||||
Equipment owned under operating leases | — | — | |||||||||||||||
Total nonperforming assets | $ | 46,746 | $ | 42,267 |
1st SOURCE CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
(Unaudited - Dollars in thousands) | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 77,568 | $ | 83,232 | ||||
Federal funds sold and interest bearing deposits with other banks | 2,484 | 702 | ||||||
Investment securities available-for-sale (amortized cost of $822,163 and $849,139 at December 31, 2013 and 2012, respectively) | 832,700 | 880,764 | ||||||
Other investments | 22,400 | 22,609 | ||||||
Trading account securities | 192 | 146 | ||||||
Mortgages held for sale | 6,079 | 10,879 | ||||||
Loans and leases, net of unearned discount: | ||||||||
Commercial and agricultural loans | 679,492 | 639,069 | ||||||
Auto, light truck and environmental equipment | 424,500 | 438,147 | ||||||
Medium and heavy duty truck | 205,003 | 172,002 | ||||||
Aircraft financing | 738,133 | 696,479 | ||||||
Construction equipment financing | 333,088 | 278,974 | ||||||
Commercial real estate | 583,997 | 554,968 | ||||||
Residential real estate | 460,981 | 438,641 | ||||||
Consumer loans | 124,130 | 109,273 | ||||||
Total loans and leases | 3,549,324 | 3,327,553 | ||||||
Reserve for loan and lease losses | (83,505 | ) | (83,311 | ) | ||||
Net loans and leases | 3,465,819 | 3,244,242 | ||||||
Equipment owned under operating leases, net | 60,967 | 52,173 | ||||||
Net premises and equipment | 46,630 | 45,016 | ||||||
Goodwill and intangible assets | 86,343 | 87,502 | ||||||
Accrued income and other assets | 121,644 | 123,428 | ||||||
Total assets | $ | 4,722,826 | $ | 4,550,693 | ||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Noninterest bearing | $ | 735,212 | $ | 646,380 | ||||
Interest bearing | 2,918,438 | 2,977,967 | ||||||
Total deposits | 3,653,650 | 3,624,347 | ||||||
Short-term borrowings: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 181,120 | 158,680 | ||||||
Other short-term borrowings | 133,011 | 10,508 | ||||||
Total short-term borrowings | 314,131 | 169,188 | ||||||
Long-term debt and mandatorily redeemable securities | 58,335 | 71,021 | ||||||
Subordinated notes | 58,764 | 58,764 | ||||||
Accrued expenses and other liabilities | 52,568 | 68,718 | ||||||
Total liabilities | 4,137,448 | 3,992,038 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Preferred stock; no par value | — | — | ||||||
Common stock; no par value | 346,535 | 346,535 | ||||||
Retained earnings | 261,626 | 223,715 | ||||||
Cost of common stock in treasury | (29,364 | ) | (31,134 | ) | ||||
Accumulated other comprehensive income | 6,581 | 19,539 | ||||||
Total shareholders' equity | 585,378 | 558,655 | ||||||
Total liabilities and shareholders' equity | $ | 4,722,826 | $ | 4,550,693 |
1st SOURCE CORPORATION | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited - Dollars in thousands) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Interest income: | ||||||||||||||||
Loans and leases | $ | 39,463 | $ | 40,552 | $ | 161,137 | $ | 161,376 | ||||||||
Investment securities, taxable | 3,640 | 3,852 | 14,414 | 16,426 | ||||||||||||
Investment securities, tax-exempt | 799 | 814 | 3,094 | 3,340 | ||||||||||||
Other | 228 | 255 | 940 | 943 | ||||||||||||
Total interest income | 44,130 | 45,473 | 179,585 | 182,085 | ||||||||||||
Interest expense: | ||||||||||||||||
Deposits | 3,561 | 5,009 | 16,604 | 21,877 | ||||||||||||
Short-term borrowings | 62 | 33 | 211 | 169 | ||||||||||||
Subordinated notes | 1,055 | 1,542 | 4,220 | 6,484 | ||||||||||||
Long-term debt and mandatorily redeemable securities | 418 | 380 | 1,733 | 1,779 | ||||||||||||
Total interest expense | 5,096 | 6,964 | 22,768 | 30,309 | ||||||||||||
Net interest income | 39,034 | 38,509 | 156,817 | 151,776 | ||||||||||||
(Recovery of) provision for loan and lease losses | (859 | ) | 793 | 772 | 5,752 | |||||||||||
Net interest income after (recovery of) provision for loan and lease losses | 39,893 | 37,716 | 156,045 | 146,024 | ||||||||||||
Noninterest income: | ||||||||||||||||
Trust fees | 3,583 | 4,091 | 17,383 | 16,498 | ||||||||||||
Service charges on deposit accounts | 2,249 | 2,671 | 9,177 | 10,418 | ||||||||||||
Debit card income | 2,130 | 2,108 | 8,882 | 8,389 | ||||||||||||
Mortgage banking income | 1,277 | 2,893 | 5,944 | 8,357 | ||||||||||||
Insurance commissions | 1,361 | 1,443 | 5,492 | 5,494 | ||||||||||||
Equipment rental income | 4,131 | 4,176 | 16,229 | 18,796 | ||||||||||||
Investment securities and other investment (losses) gains | (15 | ) | 88 | 454 | 580 | |||||||||||
Other income | 3,269 | 3,104 | 13,651 | 12,660 | ||||||||||||
Total noninterest income | 17,985 | 20,574 | 77,212 | 81,192 | ||||||||||||
Noninterest expense: | ||||||||||||||||
Salaries and employee benefits | 20,230 | 20,931 | 79,783 | 82,599 | ||||||||||||
Net occupancy expense | 2,220 | 2,159 | 8,700 | 7,819 | ||||||||||||
Furniture and equipment expense | 4,610 | 4,251 | 16,895 | 15,406 | ||||||||||||
Depreciation - leased equipment | 3,310 | 3,293 | 13,055 | 15,202 | ||||||||||||
Professional fees | 1,478 | 1,851 | 5,321 | 6,083 | ||||||||||||
Supplies and communication | 1,325 | 1,536 | 5,690 | 5,701 | ||||||||||||
FDIC and other insurance | 783 | 886 | 3,462 | 3,602 | ||||||||||||
Business development and marketing expense | 1,927 | 1,307 | 4,938 | 4,232 | ||||||||||||
Loan and lease collection and repossession expense | 648 | 1,426 | 4,030 | 5,772 | ||||||||||||
Other expense | 2,059 | 2,077 | 7,440 | 5,120 | ||||||||||||
Total noninterest expense | 38,590 | 39,717 | 149,314 | 151,536 | ||||||||||||
Income before income taxes | 19,288 | 18,573 | 83,943 | 75,680 | ||||||||||||
Income tax expense | 5,572 | 6,227 | 28,985 | 26,047 | ||||||||||||
Net income | $ | 13,716 | $ | 12,346 | $ | 54,958 | $ | 49,633 | ||||||||
The NASDAQ Stock Market National Market Symbol: "SRCE" (CUSIP #336901 10 3) | ||||||||||||||||
Please contact us at shareholder@1stsource.com |