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): April 24, 2014 | ||
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: April 24, 2014 | /s/ CHRISTOPHER J. MURPHY III | |
Christopher J. Murphy III | ||
Chairman of the Board, President and CEO | ||
Date: April 24, 2014 | /s/ ANDREA G. SHORT | |
Andrea G. Short | ||
Treasurer and Chief Financial Officer | ||
Principal Accounting Officer |
For: | Immediate Release | Contact: | Andrea Short |
April 24, 2014 | 574-235-2000 |
1st SOURCE CORPORATION | |||||||||
1st QUARTER 2014 FINANCIAL HIGHLIGHTS | |||||||||
(Unaudited - Dollars in thousands, except per share data) | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
END OF PERIOD BALANCES | |||||||||
Assets | $ | 4,773,193 | $ | 4,558,028 | |||||
Loans and leases | 3,577,568 | 3,373,218 | |||||||
Deposits | 3,708,423 | 3,680,566 | |||||||
Reserve for loan and lease losses | 85,010 | 84,011 | |||||||
Intangible assets | 86,057 | 87,207 | |||||||
Common shareholders' equity | 596,586 | 568,362 | |||||||
AVERAGE BALANCES | |||||||||
Assets | $ | 4,698,167 | $ | 4,543,279 | |||||
Earning assets | 4,414,390 | 4,262,400 | |||||||
Investments | 831,598 | 857,051 | |||||||
Loans and leases | 3,543,219 | 3,342,033 | |||||||
Deposits | 3,669,955 | 3,664,273 | |||||||
Interest bearing liabilities | 3,340,957 | 3,264,100 | |||||||
Common shareholders' equity | 594,687 | 565,522 | |||||||
INCOME STATEMENT DATA | |||||||||
Net interest income | $ | 38,618 | $ | 37,754 | |||||
Net interest income - FTE | 39,087 | 38,220 | |||||||
Provision for loan and lease losses | 804 | 757 | |||||||
Noninterest income | 19,398 | 18,948 | |||||||
Noninterest expense | 35,973 | 36,550 | |||||||
Net income | 13,632 | 12,404 | |||||||
PER SHARE DATA | |||||||||
Basic net income per common share | $ | 0.55 | $ | 0.50 | |||||
Diluted net income per common share | 0.55 | 0.50 | |||||||
Common cash dividends declared | 0.17 | 0.17 | |||||||
Book value per common share | 24.51 | 23.33 | |||||||
Tangible book value per common share | 20.98 | 19.75 | |||||||
Market value - High | 32.60 | 24.79 | |||||||
Market value - Low | 27.56 | 21.88 | |||||||
Basic weighted average common shares outstanding | 24,317,446 | 24,321,985 | |||||||
Diluted weighted average common shares outstanding | 24,317,446 | 24,324,328 | |||||||
KEY RATIOS | |||||||||
Return on average assets | 1.18 | % | 1.11 | % | |||||
Return on average common shareholders' equity | 9.30 | 8.90 | |||||||
Average common shareholders' equity to average assets | 12.66 | 12.45 | |||||||
End of period tangible common equity to tangible assets | 10.89 | 10.76 | |||||||
Risk-based capital - Tier 1 | 14.60 | 14.41 | |||||||
Risk-based capital - Total | 15.94 | 15.73 | |||||||
Net interest margin | 3.59 | 3.64 | |||||||
Efficiency: expense to revenue | 58.46 | 63.14 | |||||||
Net charge offs to average loans and leases | (0.08 | ) | 0.01 | ||||||
Loan and lease loss reserve to loans and leases | 2.38 | 2.49 | |||||||
Nonperforming assets to loans and leases | 0.98 | 1.41 | |||||||
ASSET QUALITY | |||||||||
Loans and leases past due 90 days or more | $ | 307 | $ | 231 | |||||
Nonaccrual loans and leases | 24,680 | 42,776 | |||||||
Other real estate | 2,091 | 4,372 | |||||||
Former bank premises held for sale | 801 | 951 | |||||||
Repossessions | 7,998 | 103 | |||||||
Total nonperforming assets | $ | 35,877 | $ | 48,433 |
1st SOURCE CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
(Unaudited - Dollars in thousands) | ||||||||
March 31, 2014 | March 31, 2013 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 92,465 | $ | 43,033 | ||||
Federal funds sold and interest bearing deposits with other banks | 1,362 | 21,424 | ||||||
Investment securities available-for-sale (amortized cost of $826,007 and $830,464 at March 31, 2014 and 2013, respectively) | 839,597 | 860,137 | ||||||
Other investments | 22,400 | 22,609 | ||||||
Trading account securities | 192 | 162 | ||||||
Mortgages held for sale | 10,961 | 10,634 | ||||||
Loans and leases, net of unearned discount: | ||||||||
Commercial and agricultural loans | 698,246 | 647,661 | ||||||
Auto and light truck | 388,665 | 412,569 | ||||||
Medium and heavy duty truck | 237,906 | 203,667 | ||||||
Aircraft financing | 730,803 | 699,241 | ||||||
Construction equipment financing | 352,796 | 285,916 | ||||||
Commercial real estate | 588,629 | 566,355 | ||||||
Residential real estate | 455,678 | 445,160 | ||||||
Consumer loans | 124,845 | 112,649 | ||||||
Total loans and leases | 3,577,568 | 3,373,218 | ||||||
Reserve for loan and lease losses | (85,010 | ) | (84,011 | ) | ||||
Net loans and leases | 3,492,558 | 3,289,207 | ||||||
Equipment owned under operating leases, net | 58,468 | 53,457 | ||||||
Net premises and equipment | 45,856 | 45,620 | ||||||
Goodwill and intangible assets | 86,057 | 87,207 | ||||||
Accrued income and other assets | 123,277 | 124,538 | ||||||
Total assets | $ | 4,773,193 | $ | 4,558,028 | ||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Noninterest bearing | $ | 750,662 | $ | 647,407 | ||||
Interest bearing | 2,957,761 | 3,033,159 | ||||||
Total deposits | 3,708,423 | 3,680,566 | ||||||
Short-term borrowings: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 168,339 | 102,672 | ||||||
Other short-term borrowings | 129,308 | 12,205 | ||||||
Total short-term borrowings | 297,647 | 114,877 | ||||||
Long-term debt and mandatorily redeemable securities | 59,555 | 68,258 | ||||||
Subordinated notes | 58,764 | 58,764 | ||||||
Accrued expenses and other liabilities | 52,218 | 67,201 | ||||||
Total liabilities | 4,176,607 | 3,989,666 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Preferred stock; no par value | — | — | ||||||
Common stock; no par value | 346,535 | 346,535 | ||||||
Retained earnings | 270,848 | 231,664 | ||||||
Cost of common stock in treasury | (29,285 | ) | (28,170 | ) | ||||
Accumulated other comprehensive income | 8,488 | 18,333 | ||||||
Total shareholders' equity | 596,586 | 568,362 | ||||||
Total liabilities and shareholders' equity | $ | 4,773,193 | $ | 4,558,028 |
1st SOURCE CORPORATION | |||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||
(Unaudited - Dollars in thousands) | |||||||
Three Months Ended | |||||||
March 31, | |||||||
2014 | 2013 | ||||||
Interest income: | |||||||
Loans and leases | $ | 38,914 | $ | 39,170 | |||
Investment securities, taxable | 3,345 | 3,695 | |||||
Investment securities, tax-exempt | 819 | 771 | |||||
Other | 277 | 242 | |||||
Total interest income | 43,355 | 43,878 | |||||
Interest expense: | |||||||
Deposits | 2,971 | 4,542 | |||||
Short-term borrowings | 136 | 32 | |||||
Subordinated notes | 1,055 | 1,055 | |||||
Long-term debt and mandatorily redeemable securities | 575 | 495 | |||||
Total interest expense | 4,737 | 6,124 | |||||
Net interest income | 38,618 | 37,754 | |||||
Provision for loan and lease losses | 804 | 757 | |||||
Net interest income after provision for loan and lease losses | 37,814 | 36,997 | |||||
Noninterest income: | |||||||
Trust fees | 4,476 | 4,101 | |||||
Service charges on deposit accounts | 2,066 | 2,239 | |||||
Debit card income | 2,232 | 2,065 | |||||
Mortgage banking income | 1,334 | 1,628 | |||||
Insurance commissions | 1,563 | 1,446 | |||||
Equipment rental income | 4,082 | 4,012 | |||||
Gains on investment securities available-for-sale | 963 | — | |||||
Other income | 2,682 | 3,457 | |||||
Total noninterest income | 19,398 | 18,948 | |||||
Noninterest expense: | |||||||
Salaries and employee benefits | 19,482 | 19,936 | |||||
Net occupancy expense | 2,437 | 2,207 | |||||
Furniture and equipment expense | 4,237 | 3,899 | |||||
Depreciation - leased equipment | 3,249 | 3,225 | |||||
Professional fees | 1,128 | 1,355 | |||||
Supplies and communication | 1,392 | 1,536 | |||||
FDIC and other insurance | 864 | 878 | |||||
Business development and marketing expense | 1,684 | 773 | |||||
Loan and lease collection and repossession expense | (494 | ) | 757 | ||||
Other expense | 1,994 | 1,984 | |||||
Total noninterest expense | 35,973 | 36,550 | |||||
Income before income taxes | 21,239 | 19,395 | |||||
Income tax expense | 7,607 | 6,991 | |||||
Net income | $ | 13,632 | $ | 12,404 | |||
The NASDAQ Stock Market National Market Symbol: "SRCE" (CUSIP #336901 10 3) | |||||||
Please contact us at shareholder@1stsource.com |