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): June 30, 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: July 24, 2014 | /s/ CHRISTOPHER J. MURPHY III | |
Christopher J. Murphy III | ||
Chairman of the Board, President and CEO | ||
Date: July 24, 2014 | /s/ ANDREA G. SHORT | |
Andrea G. Short | ||
Treasurer and Chief Financial Officer | ||
Principal Accounting Officer |
For: | Immediate Release | Contact: | Andrea Short |
July 24, 2014 | 574-235-2000 |
1st SOURCE CORPORATION | ||||||||||||||||||
2nd QUARTER 2014 FINANCIAL HIGHLIGHTS | ||||||||||||||||||
(Unaudited - Dollars in thousands, except per share data) | ||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
END OF PERIOD BALANCES | ||||||||||||||||||
Assets | $ | 4,925,727 | $ | 4,638,811 | ||||||||||||||
Loans and leases | 3,723,535 | 3,493,385 | ||||||||||||||||
Deposits | 3,815,735 | 3,700,799 | ||||||||||||||||
Reserve for loan and lease losses | 88.776 | 85,690 | ||||||||||||||||
Intangible assets | 85,796 | 86,915 | ||||||||||||||||
Common shareholders' equity | 594,218 | 567,753 | ||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||
Assets | $ | 4,831,313 | $ | 4,611,953 | $ | 4,765,107 | $ | 4,577,806 | ||||||||||
Earning assets | 4,539,093 | 4,326,264 | 4,477,086 | 4,294,509 | ||||||||||||||
Investments | 835,755 | 843,870 | 833,688 | 850,425 | ||||||||||||||
Loans and leases | 3,662,156 | 3,419,723 | 3,603,016 | 3,381,093 | ||||||||||||||
Deposits | 3,764,043 | 3,719,007 | 3,717,259 | 3,691,791 | ||||||||||||||
Interest bearing liabilities | 3,451,752 | 3,305,196 | 3,396,660 | 3,284,762 | ||||||||||||||
Common shareholders' equity | 599,292 | 574,867 | 597,002 | 570,220 | ||||||||||||||
INCOME STATEMENT DATA | ||||||||||||||||||
Net interest income | $ | 40,162 | $ | 38,871 | $ | 78,780 | $ | 76,625 | ||||||||||
Net interest income - FTE | 40,622 | 39,324 | 79,709 | 77,544 | ||||||||||||||
Provision for loan and lease losses | 2,543 | 1,293 | 3,347 | 2,050 | ||||||||||||||
Noninterest income | 19,221 | 20,121 | 38,619 | 39,069 | ||||||||||||||
Noninterest expense | 34,424 | 35,744 | 70,396 | 72,294 | ||||||||||||||
Net income | 14,494 | 13,942 | 28,126 | 26,346 | ||||||||||||||
PER SHARE DATA | ||||||||||||||||||
Basic net income per common share | $ | 0.59 | $ | 0.56 | $ | 1.15 | $ | 1.07 | ||||||||||
Diluted net income per common share | 0.59 | 0.56 | 1.15 | 1.07 | ||||||||||||||
Common cash dividends declared | 0.18 | 0.17 | 0.35 | 0.34 | ||||||||||||||
Book value per common share | 24.89 | 23.29 | 24.89 | 23.29 | ||||||||||||||
Tangible book value per common share | 21.30 | 19.73 | 21.30 | 19.73 | ||||||||||||||
Market value - High | 33.21 | 25.25 | 33.21 | 25.25 | ||||||||||||||
Market value - Low | 28.76 | 22.65 | 27.56 | 21.88 | ||||||||||||||
Basic weighted average common shares outstanding | 24,077,990 | 24,367,529 | 24,197,057 | 24,344,882 | ||||||||||||||
Diluted weighted average common shares outstanding | 24,077,990 | 24,368,973 | 24,197,057 | 24,346,053 | ||||||||||||||
KEY RATIOS | ||||||||||||||||||
Return on average assets | 1.20 | % | 1.21 | % | 1.19 | % | 1.16 | % | ||||||||||
Return on average common shareholders' equity | 9.70 | 9.73 | 9.50 | 9.32 | ||||||||||||||
Average common shareholders' equity to average assets | 12.40 | 12.46 | 12.53 | 12.46 | ||||||||||||||
End of period tangible common equity to tangible assets | 10.50 | 10.56 | 10.50 | 10.56 | ||||||||||||||
Risk-based capital - Tier 1 | 13.97 | 14.23 | 13.97 | 14.23 | ||||||||||||||
Risk-based capital - Total | 15.28 | 15.55 | 15.28 | 15.55 | ||||||||||||||
Net interest margin | 3.59 | 3.65 | 3.59 | 3.64 | ||||||||||||||
Efficiency: expense to revenue | 55.59 | 59.00 | 57.01 | 61.03 | ||||||||||||||
Net charge offs to average loans and leases | (0.13 | ) | (0.05 | ) | (0.11 | ) | (0.02 | ) | ||||||||||
Loan and lease loss reserve to loans and leases | 2.38 | 2.45 | 2.38 | 2.45 | ||||||||||||||
Nonperforming assets to loans and leases | 1.08 | 1.01 | 1.08 | 1.01 | ||||||||||||||
ASSET QUALITY | ||||||||||||||||||
Loans and leases past due 90 days or more | $ | 475 | $ | 184 | ||||||||||||||
Nonaccrual loans and leases | 32,486 | 29,318 | ||||||||||||||||
Other real estate | 1,853 | 5,455 | ||||||||||||||||
Former bank premises held for sale | 801 | 951 | ||||||||||||||||
Repossessions | 5,455 | 137 | ||||||||||||||||
Equipment owned under operating leases | 23 | — | ||||||||||||||||
Total nonperforming assets | $ | 41,093 | $ | 36,045 |
1st SOURCE CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
(Unaudited - Dollars in thousands) | ||||||||
June 30, 2014 | June 30, 2013 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 110,933 | $ | 64,850 | ||||
Federal funds sold and interest bearing deposits with other banks | 6,445 | 3,171 | ||||||
Investment securities available-for-sale (amortized cost of $798,708 and $815,626 at June 30, 2014 and 2013, respectively) | 815,056 | 828,312 | ||||||
Other investments | 23,597 | 22,409 | ||||||
Trading account securities | 198 | 166 | ||||||
Mortgages held for sale | 19,034 | 10,849 | ||||||
Loans and leases, net of unearned discount: | ||||||||
Commercial and agricultural loans | 720,226 | 660,380 | ||||||
Auto and light truck | 471,080 | 475,209 | ||||||
Medium and heavy duty truck | 243,358 | 213,947 | ||||||
Aircraft financing | 733,194 | 677,510 | ||||||
Construction equipment financing | 369,755 | 311,135 | ||||||
Commercial real estate | 602,321 | 576,810 | ||||||
Residential real estate | 454,845 | 454,983 | ||||||
Consumer loans | 128,756 | 123,411 | ||||||
Total loans and leases | 3,723,535 | 3,493,385 | ||||||
Reserve for loan and lease losses | (88,776 | ) | (85,690 | ) | ||||
Net loans and leases | 3,634,759 | 3,407,695 | ||||||
Equipment owned under operating leases, net | 63,350 | 52,856 | ||||||
Net premises and equipment | 45,840 | 46,027 | ||||||
Goodwill and intangible assets | 85,796 | 86,915 | ||||||
Accrued income and other assets | 120,719 | 115,561 | ||||||
Total assets | $ | 4,925,727 | $ | 4,638,811 | ||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Noninterest bearing | $ | 768,710 | $ | 698,389 | ||||
Interest bearing | 3,047,025 | 3,002,410 | ||||||
Total deposits | 3,815,735 | 3,700,799 | ||||||
Short-term borrowings: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 191,545 | 162,778 | ||||||
Other short-term borrowings | 158,457 | 39,126 | ||||||
Total short-term borrowings | 350,002 | 201,904 | ||||||
Long-term debt and mandatorily redeemable securities | 59,726 | 58,216 | ||||||
Subordinated notes | 58,764 | 58,764 | ||||||
Accrued expenses and other liabilities | 47,282 | 51,375 | ||||||
Total liabilities | 4,331,509 | 4,071,058 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Preferred stock; no par value | — | — | ||||||
Common stock; no par value | 346,535 | 346,535 | ||||||
Retained earnings | 280,917 | 241,401 | ||||||
Cost of common stock in treasury | (43,445 | ) | (28,021 | ) | ||||
Accumulated other comprehensive income | 10,211 | 7,838 | ||||||
Total shareholders' equity | 594,218 | 567,753 | ||||||
Total liabilities and shareholders' equity | $ | 4,925,727 | $ | 4,638,811 |
1st SOURCE CORPORATION | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Unaudited - Dollars in thousands) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Interest income: | |||||||||||||||
Loans and leases | $ | 40,401 | $ | 40,112 | $ | 79,316 | $ | 79,282 | |||||||
Investment securities, taxable | 3,401 | 3,498 | 6,746 | 7,193 | |||||||||||
Investment securities, tax-exempt | 816 | 760 | 1,635 | 1,531 | |||||||||||
Other | 232 | 241 | 509 | 483 | |||||||||||
Total interest income | 44,850 | 44,611 | 88,206 | 88,489 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 2,994 | 4,412 | 5,965 | 8,954 | |||||||||||
Short-term borrowings | 169 | 45 | 306 | 77 | |||||||||||
Subordinated notes | 1,055 | 1,055 | 2,110 | 2,110 | |||||||||||
Long-term debt and mandatorily redeemable securities | 470 | 228 | 1,045 | 723 | |||||||||||
Total interest expense | 4,688 | 5,740 | 9,426 | 11,864 | |||||||||||
Net interest income | 40,162 | 38,871 | 78,780 | 76,625 | |||||||||||
Provision for loan and lease losses | 2,543 | 1,293 | 3,347 | 2,050 | |||||||||||
Net interest income after provision for loan and lease losses | 37,619 | 37,578 | 75,433 | 74,575 | |||||||||||
Noninterest income: | |||||||||||||||
Trust fees | 4,955 | 4,439 | 9,431 | 8,540 | |||||||||||
Service charges on deposit accounts | 2,207 | 2,325 | 4,273 | 4,564 | |||||||||||
Debit card income | 2,463 | 2,344 | 4,695 | 4,409 | |||||||||||
Mortgage banking income | 1,181 | 1,936 | 2,515 | 3,564 | |||||||||||
Insurance commissions | 1,288 | 1,393 | 2,851 | 2,839 | |||||||||||
Equipment rental income | 4,098 | 4,086 | 8,180 | 8,098 | |||||||||||
Gains on investment securities available-for-sale | — | — | 963 | — | |||||||||||
Other income | 3,029 | 3,598 | 5,711 | 7,055 | |||||||||||
Total noninterest income | 19,221 | 20,121 | 38,619 | 39,069 | |||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 18,827 | 19,176 | 38,309 | 39,112 | |||||||||||
Net occupancy expense | 2,235 | 2,147 | 4,672 | 4,354 | |||||||||||
Furniture and equipment expense | 4,413 | 3,909 | 8,650 | 7,808 | |||||||||||
Depreciation - leased equipment | 3,290 | 3,274 | 6,539 | 6,499 | |||||||||||
Professional fees | 1,062 | 1,310 | 2,190 | 2,665 | |||||||||||
Supplies and communication | 1,337 | 1,499 | 2,729 | 3,035 | |||||||||||
FDIC and other insurance | 850 | 927 | 1,714 | 1,805 | |||||||||||
Business development and marketing expense | 899 | 932 | 2,583 | 1,705 | |||||||||||
Loan and lease collection and repossession expense | (17 | ) | 1,095 | (512 | ) | 1,852 | |||||||||
Other expense | 1,528 | 1,475 | 3,522 | 3,459 | |||||||||||
Total noninterest expense | 34,424 | 35,744 | 70,396 | 72,294 | |||||||||||
Income before income taxes | 22,416 | 21,955 | 43,656 | 41,350 | |||||||||||
Income tax expense | 7,922 | 8,013 | 15,530 | 15,004 | |||||||||||
Net income | $ | 14,494 | $ | 13,942 | $ | 28,126 | $ | 26,346 | |||||||
The NASDAQ Stock Market National Market Symbol: "SRCE" (CUSIP #336901 10 3) | |||||||||||||||
Please contact us at shareholder@1stsource.com |