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): October 23, 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: October 23, 2014 | /s/ CHRISTOPHER J. MURPHY III | |
Christopher J. Murphy III | ||
Chairman of the Board and CEO | ||
Date: October 23, 2014 | /s/ ANDREA G. SHORT | |
Andrea G. Short | ||
Treasurer and Chief Financial Officer | ||
Principal Accounting Officer |
For: | Immediate Release | Contact: | Andrea Short |
October 23, 2014 | 574-235-2000 |
1st SOURCE CORPORATION | ||||||||||||||||||
3rd QUARTER 2014 FINANCIAL HIGHLIGHTS | ||||||||||||||||||
(Unaudited - Dollars in thousands, except per share data) | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||
END OF PERIOD BALANCES | ||||||||||||||||||
Assets | $ | 4,820,793 | $ | 4,649,961 | ||||||||||||||
Loans and leases | 3,654,421 | 3,468,118 | ||||||||||||||||
Deposits | 3,835,972 | 3,679,416 | ||||||||||||||||
Reserve for loan and lease losses | 87,400 | 84,507 | ||||||||||||||||
Intangible assets | 85,583 | 86,629 | ||||||||||||||||
Common shareholders' equity | 603,033 | 578,229 | ||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||
Assets | $ | 4,856,167 | $ | 4,625,957 | $ | 4,795,794 | $ | 4,594,032 | ||||||||||
Earning assets | 4,562,720 | 4,351,583 | 4,505,944 | 4,313,742 | ||||||||||||||
Investments | 808,591 | 825,476 | 825,230 | 842,017 | ||||||||||||||
Loans and leases | 3,700,708 | 3,483,942 | 3,635,938 | 3,415,752 | ||||||||||||||
Deposits | 3,830,243 | 3,697,869 | 3,755,334 | 3,693,839 | ||||||||||||||
Interest bearing liabilities | 3,427,965 | 3,295,163 | 3,407,210 | 3,288,267 | ||||||||||||||
Common shareholders' equity | 601,444 | 574,589 | 598,499 | 571,692 | ||||||||||||||
INCOME STATEMENT DATA | ||||||||||||||||||
Net interest income | $ | 40,710 | $ | 41,158 | $ | 119,490 | $ | 117,783 | ||||||||||
Net interest income - FTE | 41,174 | 41,604 | 120,883 | 119,148 | ||||||||||||||
Provision for (recovery of) loan and lease losses | 1,206 | (419 | ) | 4,553 | 1,631 | |||||||||||||
Noninterest income | 19,392 | 20,158 | 58,011 | 59,227 | ||||||||||||||
Noninterest expense | 37,653 | 38,430 | 108,049 | 110,724 | ||||||||||||||
Net income | 14,947 | 14,896 | 43,073 | 41,242 | ||||||||||||||
PER SHARE DATA | ||||||||||||||||||
Basic net income per common share | $ | 0.62 | $ | 0.60 | $ | 1.77 | $ | 1.67 | ||||||||||
Diluted net income per common share | 0.62 | 0.60 | 1.77 | 1.67 | ||||||||||||||
Common cash dividends declared | 0.18 | 0.17 | 0.53 | 0.51 | ||||||||||||||
Book value per common share | 25.27 | 23.77 | 25.27 | 23.77 | ||||||||||||||
Tangible book value per common share | 21.68 | 20.21 | 21.68 | 20.21 | ||||||||||||||
Market value - High | 31.92 | 28.82 | 33.21 | 28.82 | ||||||||||||||
Market value - Low | 27.80 | 23.87 | 27.56 | 21.88 | ||||||||||||||
Basic weighted average common shares outstanding | 23,875,331 | 24,366,220 | 24,088,636 | 24,352,073 | ||||||||||||||
Diluted weighted average common shares outstanding | 23,875,331 | 24,367,109 | 24,088,636 | 24,352,854 | ||||||||||||||
KEY RATIOS | ||||||||||||||||||
Return on average assets | 1.22 | % | 1.28 | % | 1.20 | % | 1.20 | % | ||||||||||
Return on average common shareholders' equity | 9.86 | 10.29 | 9.62 | 9.65 | ||||||||||||||
Average common shareholders' equity to average assets | 12.39 | 12.42 | 12.48 | 12.44 | ||||||||||||||
End of period tangible common equity to tangible assets | 10.93 | 10.77 | 10.93 | 10.77 | ||||||||||||||
Risk-based capital - Tier 1 | 14.49 | 14.57 | 14.49 | 14.57 | ||||||||||||||
Risk-based capital - Total | 15.80 | 15.89 | 15.80 | 15.89 | ||||||||||||||
Net interest margin | 3.58 | 3.79 | 3.59 | 3.69 | ||||||||||||||
Efficiency: expense to revenue | 60.72 | 61.55 | 58.26 | 61.21 | ||||||||||||||
Net charge offs to average loans and leases | 0.28 | 0.09 | 0.02 | 0.02 | ||||||||||||||
Loan and lease loss reserve to loans and leases | 2.39 | 2.44 | 2.39 | 2.44 | ||||||||||||||
Nonperforming assets to loans and leases | 0.94 | 1.14 | 0.94 | 1.14 | ||||||||||||||
ASSET QUALITY | ||||||||||||||||||
Loans and leases past due 90 days or more | $ | 750 | $ | 245 | ||||||||||||||
Nonaccrual loans and leases | 26,524 | 31,325 | ||||||||||||||||
Other real estate | 1,433 | 5,002 | ||||||||||||||||
Former bank premises held for sale | 801 | 951 | ||||||||||||||||
Repossessions | 5,421 | 2,811 | ||||||||||||||||
Equipment owned under operating leases | 15 | — | ||||||||||||||||
Total nonperforming assets | $ | 34,944 | $ | 40,334 |
1st SOURCE CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
(Unaudited - Dollars in thousands) | ||||||||
September 30, 2014 | September 30, 2013 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 54,542 | $ | 90,090 | ||||
Federal funds sold and interest bearing deposits with other banks | 27,169 | 1,676 | ||||||
Investment securities available-for-sale (amortized cost of $799,862 and $819,918 at September 30, 2014 and 2013, respectively) | 813,704 | 834,348 | ||||||
Other investments | 23,017 | 22,409 | ||||||
Trading account securities | 196 | 177 | ||||||
Mortgages held for sale | 13,070 | 7,157 | ||||||
Loans and leases, net of unearned discount: | ||||||||
Commercial and agricultural loans | 696,209 | 652,180 | ||||||
Auto and light truck | 422,742 | 417,351 | ||||||
Medium and heavy duty truck | 249,014 | 228,028 | ||||||
Aircraft financing | 700,794 | 704,072 | ||||||
Construction equipment financing | 375,069 | 315,346 | ||||||
Commercial real estate | 615,420 | 574,279 | ||||||
Residential real estate | 451,508 | 455,327 | ||||||
Consumer loans | 143,665 | 121,535 | ||||||
Total loans and leases | 3,654,421 | 3,468,118 | ||||||
Reserve for loan and lease losses | (87,400 | ) | (84,507 | ) | ||||
Net loans and leases | 3,567,021 | 3,383,611 | ||||||
Equipment owned under operating leases, net | 66,013 | 61,160 | ||||||
Net premises and equipment | 47,350 | 45,466 | ||||||
Goodwill and intangible assets | 85,583 | 86,629 | ||||||
Accrued income and other assets | 123,128 | 117,238 | ||||||
Total assets | $ | 4,820,793 | $ | 4,649,961 | ||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Noninterest bearing | $ | 818,679 | $ | 725,263 | ||||
Interest bearing | 3,017,293 | 2,954,153 | ||||||
Total deposits | 3,835,972 | 3,679,416 | ||||||
Short-term borrowings: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 106,769 | 147,991 | ||||||
Other short-term borrowings | 109,953 | 73,451 | ||||||
Total short-term borrowings | 216,722 | 221,442 | ||||||
Long-term debt and mandatorily redeemable securities | 56,171 | 58,440 | ||||||
Subordinated notes | 58,764 | 58,764 | ||||||
Accrued expenses and other liabilities | 50,131 | 53,670 | ||||||
Total liabilities | 4,217,760 | 4,071,732 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
Preferred stock; no par value | — | — | ||||||
Common stock; no par value | 346,535 | 346,535 | ||||||
Retained earnings | 291,569 | 252,043 | ||||||
Cost of common stock in treasury | (43,716 | ) | (29,362 | ) | ||||
Accumulated other comprehensive income | 8,645 | 9,013 | ||||||
Total shareholders' equity | 603,033 | 578,229 | ||||||
Total liabilities and shareholders' equity | $ | 4,820,793 | $ | 4,649,961 |
1st SOURCE CORPORATION | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Unaudited - Dollars in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Interest income: | |||||||||||||||
Loans and leases | $ | 41,118 | $ | 42,392 | $ | 120,434 | $ | 121,674 | |||||||
Investment securities, taxable | 2,962 | 3,581 | 9,708 | 10,774 | |||||||||||
Investment securities, tax-exempt | 831 | 764 | 2,466 | 2,295 | |||||||||||
Other | 241 | 229 | 750 | 712 | |||||||||||
Total interest income | 45,152 | 46,966 | 133,358 | 135,455 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 2,765 | 4,089 | 8,730 | 13,043 | |||||||||||
Short-term borrowings | 134 | 72 | 440 | 149 | |||||||||||
Subordinated notes | 1,055 | 1,055 | 3,165 | 3,165 | |||||||||||
Long-term debt and mandatorily redeemable securities | 488 | 592 | 1,533 | 1,315 | |||||||||||
Total interest expense | 4,442 | 5,808 | 13,868 | 17,672 | |||||||||||
Net interest income | 40,710 | 41,158 | 119,490 | 117,783 | |||||||||||
Provision for (recovery of) loan and lease losses | 1,206 | (419 | ) | 4,553 | 1,631 | ||||||||||
Net interest income after provision for loan and lease losses | 39,504 | 41,577 | 114,937 | 116,152 | |||||||||||
Noninterest income: | |||||||||||||||
Trust fees | 4,499 | 5,260 | 13,930 | 13,800 | |||||||||||
Service charges on deposit accounts | 2,225 | 2,364 | 6,498 | 6,928 | |||||||||||
Debit card income | 2,382 | 2,343 | 7,077 | 6,752 | |||||||||||
Mortgage banking income | 1,446 | 1,103 | 3,961 | 4,667 | |||||||||||
Insurance commissions | 1,317 | 1,292 | 4,168 | 4,131 | |||||||||||
Equipment rental income | 4,361 | 4,000 | 12,541 | 12,098 | |||||||||||
Gains (losses) on investment securities available-for-sale | — | (28 | ) | 963 | (28 | ) | |||||||||
Other income | 3,162 | 3,824 | 8,873 | 10,879 | |||||||||||
Total noninterest income | 19,392 | 20,158 | 58,011 | 59,227 | |||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 20,790 | 20,441 | 59,099 | 59,553 | |||||||||||
Net occupancy expense | 2,252 | 2,126 | 6,924 | 6,480 | |||||||||||
Furniture and equipment expense | 4,415 | 4,477 | 13,065 | 12,285 | |||||||||||
Depreciation - leased equipment | 3,571 | 3,246 | 10,110 | 9,745 | |||||||||||
Professional fees | 1,158 | 1,178 | 3,348 | 3,843 | |||||||||||
Supplies and communication | 1,424 | 1,330 | 4,153 | 4,365 | |||||||||||
FDIC and other insurance | 856 | 874 | 2,570 | 2,679 | |||||||||||
Business development and marketing expense | 1,218 | 1,306 | 3,801 | 3,011 | |||||||||||
Loan and lease collection and repossession expense | 652 | 1,530 | 140 | 3,382 | |||||||||||
Other expense | 1,317 | 1,922 | 4,839 | 5,381 | |||||||||||
Total noninterest expense | 37,653 | 38,430 | 108,049 | 110,724 | |||||||||||
Income before income taxes | 21,243 | 23,305 | 64,899 | 64,655 | |||||||||||
Income tax expense | 6,296 | 8,409 | 21,826 | 23,413 | |||||||||||
Net income | $ | 14,947 | $ | 14,896 | $ | 43,073 | $ | 41,242 | |||||||
The NASDAQ Stock Market National Market Symbol: "SRCE" (CUSIP #336901 10 3) | |||||||||||||||
Please contact us at shareholder@1stsource.com |