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 21, 2015 | ||
![]() | ||
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 22, 2015 | /s/ CHRISTOPHER J. MURPHY III | |
Christopher J. Murphy III | ||
Chairman of the Board and CEO | ||
Date: October 22, 2015 | /s/ ANDREA G. SHORT | |
Andrea G. Short | ||
Treasurer and Chief Financial Officer | ||
Principal Accounting Officer |
For: | Immediate Release | Contact: | Andrea Short |
October 22, 2015 | 574-235-2000 |
1st SOURCE CORPORATION | ||||||||||||||||||
3rd QUARTER 2015 FINANCIAL HIGHLIGHTS | ||||||||||||||||||
(Unaudited - Dollars in thousands, except per share data) | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
END OF PERIOD BALANCES | ||||||||||||||||||
Assets | $ | 5,105,584 | $ | 4,820,793 | ||||||||||||||
Loans and leases | 3,955,550 | 3,654,421 | ||||||||||||||||
Deposits | 4,019,156 | 3,835,972 | ||||||||||||||||
Reserve for loan and lease losses | 87,616 | 87,400 | ||||||||||||||||
Intangible assets | 84,822 | 85,583 | ||||||||||||||||
Common shareholders’ equity | 639,221 | 603,033 | ||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||
Assets | $ | 5,061,350 | $ | 4,856,167 | $ | 4,946,899 | $ | 4,795,794 | ||||||||||
Earning assets | 4,733,336 | 4,562,720 | 4,627,111 | 4,505,944 | ||||||||||||||
Investments | 781,971 | 808,591 | 787,343 | 825,230 | ||||||||||||||
Loans and leases | 3,910,981 | 3,700,708 | 3,795,929 | 3,635,938 | ||||||||||||||
Deposits | 3,995,795 | 3,830,243 | 3,913,931 | 3,755,334 | ||||||||||||||
Interest bearing liabilities | 3,489,505 | 3,427,965 | 3,435,444 | 3,407,210 | ||||||||||||||
Common shareholders’ equity | 638,965 | 601,444 | 631,611 | 598,499 | ||||||||||||||
INCOME STATEMENT DATA | ||||||||||||||||||
Net interest income | $ | 42,209 | $ | 40,710 | $ | 123,310 | $ | 119,490 | ||||||||||
Net interest income - FTE | 42,625 | 41,174 | 124,551 | 120,883 | ||||||||||||||
Provision for loan and lease losses | 992 | 1,206 | 2,160 | 4,553 | ||||||||||||||
Noninterest income | 21,132 | 19,392 | 62,414 | 58,011 | ||||||||||||||
Noninterest expense | 41,068 | 37,653 | 117,370 | 108,049 | ||||||||||||||
Net income | 13,928 | 14,947 | 43,069 | 43,073 | ||||||||||||||
PER SHARE DATA* | ||||||||||||||||||
Basic net income per common share | $ | 0.53 | $ | 0.56 | $ | 1.63 | $ | 1.61 | ||||||||||
Diluted net income per common share | 0.53 | 0.56 | 1.63 | 1.61 | ||||||||||||||
Common cash dividends declared | 0.164 | 0.164 | 0.491 | 0.482 | ||||||||||||||
Book value per common share | 24.51 | 22.97 | 24.51 | 22.97 | ||||||||||||||
Tangible book value per common share | 21.26 | 19.71 | 21.26 | 19.71 | ||||||||||||||
Market value - High | 32.37 | 29.02 | 32.37 | 30.19 | ||||||||||||||
Market value - Low | 28.06 | 25.27 | 26.95 | 25.05 | ||||||||||||||
Basic weighted average common shares outstanding | 26,164,646 | 26,262,864 | 26,211,630 | 26,497,500 | ||||||||||||||
Diluted weighted average common shares outstanding | 26,164,646 | 26,262,864 | 26,211,630 | 26,497,500 | ||||||||||||||
KEY RATIOS | ||||||||||||||||||
Return on average assets | 1.09 | % | 1.22 | % | 1.16 | % | 1.20 | % | ||||||||||
Return on average common shareholders’ equity | 8.65 | 9.86 | 9.12 | 9.62 | ||||||||||||||
Average common shareholders’ equity to average assets | 12.62 | 12.39 | 12.77 | 12.48 | ||||||||||||||
End of period tangible common equity to tangible assets | 11.04 | 10.93 | 11.04 | 10.93 | ||||||||||||||
Risk-based capital - Common Equity Tier 1 | 12.48 | N/A | 12.48 | N/A | ||||||||||||||
Risk-based capital - Tier 1 | 13.77 | 14.49 | 13.77 | 14.49 | ||||||||||||||
Risk-based capital - Total | 15.08 | 15.80 | 15.08 | 15.80 | ||||||||||||||
Net interest margin | 3.57 | 3.58 | 3.60 | 3.59 | ||||||||||||||
Efficiency: expense to revenue | 61.98 | 60.72 | 60.57 | 58.26 | ||||||||||||||
Net charge offs (recoveries) to average loans and leases | — | 0.28 | (0.01 | ) | 0.02 | |||||||||||||
Loan and lease loss reserve to loans and leases | 2.22 | 2.39 | 2.22 | 2.39 | ||||||||||||||
Nonperforming assets to loans and leases | 0.66 | 0.94 | 0.66 | 0.94 | ||||||||||||||
ASSET QUALITY | ||||||||||||||||||
Loans and leases past due 90 days or more | $ | 411 | $ | 750 | ||||||||||||||
Nonaccrual loans and leases | 18,985 | 26,524 | ||||||||||||||||
Other real estate | 232 | 1,433 | ||||||||||||||||
Former bank premises held for sale | 515 | 801 | ||||||||||||||||
Repossessions | 6,602 | 5,421 | ||||||||||||||||
Equipment owned under operating leases | 146 | 15 | ||||||||||||||||
Total nonperforming assets | $ | 26,891 | $ | 34,944 | ||||||||||||||
*Share and per share figures have been adjusted for 10% stock dividend declared July 22, 2015 and issued on August 14, 2015. |
1st SOURCE CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
(Unaudited - Dollars in thousands) | ||||||||
September 30, 2015 | September 30, 2014 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 61,124 | $ | 54,542 | ||||
Federal funds sold and interest bearing deposits with other banks | 3,065 | 27,169 | ||||||
Investment securities available-for-sale (amortized cost of $769,053 and $799,862 at September 30, 2015 and 2014, respectively) | 784,585 | 813,704 | ||||||
Other investments | 21,728 | 23,017 | ||||||
Trading account securities | — | 196 | ||||||
Mortgages held for sale | 9,187 | 13,070 | ||||||
Loans and leases, net of unearned discount: | ||||||||
Commercial and agricultural | 750,780 | 696,209 | ||||||
Auto and light truck | 423,147 | 422,742 | ||||||
Medium and heavy duty truck | 264,784 | 249,014 | ||||||
Aircraft financing | 794,129 | 700,794 | ||||||
Construction equipment financing | 450,112 | 375,069 | ||||||
Commercial real estate | 658,589 | 615,420 | ||||||
Residential real estate | 463,824 | 451,508 | ||||||
Consumer | 150,185 | 143,665 | ||||||
Total loans and leases | 3,955,550 | 3,654,421 | ||||||
Reserve for loan and lease losses | (87,616 | ) | (87,400 | ) | ||||
Net loans and leases | 3,867,934 | 3,567,021 | ||||||
Equipment owned under operating leases, net | 95,785 | 66,013 | ||||||
Net premises and equipment | 51,252 | 47,350 | ||||||
Goodwill and intangible assets | 84,822 | 85,583 | ||||||
Accrued income and other assets | 126,102 | 123,128 | ||||||
Total assets | $ | 5,105,584 | $ | 4,820,793 | ||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Noninterest bearing | $ | 914,152 | $ | 818,679 | ||||
Interest bearing | 3,105,004 | 3,017,293 | ||||||
Total deposits | 4,019,156 | 3,835,972 | ||||||
Short-term borrowings: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 139,414 | 106,769 | ||||||
Other short-term borrowings | 144,096 | 109,953 | ||||||
Total short-term borrowings | 283,510 | 216,722 | ||||||
Long-term debt and mandatorily redeemable securities | 57,577 | 56,171 | ||||||
Subordinated notes | 58,764 | 58,764 | ||||||
Accrued expenses and other liabilities | 47,356 | 50,131 | ||||||
Total liabilities | 4,466,363 | 4,217,760 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
Preferred stock; no par value | — | — | ||||||
Common stock; no par value | 436,538 | 346,535 | ||||||
Retained earnings | 242,102 | 291,569 | ||||||
Cost of common stock in treasury | (49,120 | ) | (43,716 | ) | ||||
Accumulated other comprehensive income | 9,701 | 8,645 | ||||||
Total shareholders’ equity | 639,221 | 603,033 | ||||||
Total liabilities and shareholders’ equity | $ | 5,105,584 | $ | 4,820,793 | ||||
1st SOURCE CORPORATION | |||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
(Unaudited - Dollars in thousands) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Interest income: | |||||||||||||||
Loans and leases | $ | 42,560 | $ | 41,118 | $ | 124,747 | $ | 120,434 | |||||||
Investment securities, taxable | 3,277 | 2,962 | 8,929 | 9,708 | |||||||||||
Investment securities, tax-exempt | 738 | 831 | 2,261 | 2,466 | |||||||||||
Other | 246 | 241 | 730 | 750 | |||||||||||
Total interest income | 46,821 | 45,152 | 136,667 | 133,358 | |||||||||||
Interest expense: | |||||||||||||||
Deposits | 2,874 | 2,765 | 8,271 | 8,730 | |||||||||||
Short-term borrowings | 147 | 134 | 381 | 440 | |||||||||||
Subordinated notes | 1,055 | 1,055 | 3,165 | 3,165 | |||||||||||
Long-term debt and mandatorily redeemable securities | 536 | 488 | 1,540 | 1,533 | |||||||||||
Total interest expense | 4,612 | 4,442 | 13,357 | 13,868 | |||||||||||
Net interest income | 42,209 | 40,710 | 123,310 | 119,490 | |||||||||||
Provision for loan and lease losses | 992 | 1,206 | 2,160 | 4,553 | |||||||||||
Net interest income after provision for loan and lease losses | 41,217 | 39,504 | 121,150 | 114,937 | |||||||||||
Noninterest income: | |||||||||||||||
Trust fees | 4,634 | 4,499 | 14,438 | 13,930 | |||||||||||
Service charges on deposit accounts | 2,413 | 2,225 | 6,977 | 6,498 | |||||||||||
Debit card income | 2,583 | 2,382 | 7,610 | 7,077 | |||||||||||
Mortgage banking income | 969 | 1,446 | 3,459 | 3,961 | |||||||||||
Insurance commissions | 1,460 | 1,317 | 4,147 | 4,168 | |||||||||||
Equipment rental income | 5,881 | 4,361 | 16,302 | 12,541 | |||||||||||
Gains on investment securities available-for-sale | — | — | 4 | 963 | |||||||||||
Other income | 3,192 | 3,162 | 9,477 | 8,873 | |||||||||||
Total noninterest income | 21,132 | 19,392 | 62,414 | 58,011 | |||||||||||
Noninterest expense: | |||||||||||||||
Salaries and employee benefits | 21,835 | 20,790 | 63,554 | 59,099 | |||||||||||
Net occupancy expense | 2,496 | 2,252 | 7,302 | 6,924 | |||||||||||
Furniture and equipment expense | 4,604 | 4,415 | 13,471 | 13,065 | |||||||||||
Depreciation - leased equipment | 4,858 | 3,571 | 13,342 | 10,110 | |||||||||||
Professional fees | 1,237 | 1,158 | 3,215 | 3,348 | |||||||||||
Supplies and communication | 1,307 | 1,424 | 4,122 | 4,153 | |||||||||||
FDIC and other insurance | 848 | 856 | 2,544 | 2,570 | |||||||||||
Business development and marketing expense | 1,244 | 1,218 | 3,507 | 3,801 | |||||||||||
Loan and lease collection and repossession expense | 416 | 652 | 485 | 140 | |||||||||||
Other expense | 2,223 | 1,317 | 5,828 | 4,839 | |||||||||||
Total noninterest expense | 41,068 | 37,653 | 117,370 | 108,049 | |||||||||||
Income before income taxes | 21,281 | 21,243 | 66,194 | 64,899 | |||||||||||
Income tax expense | 7,353 | 6,296 | 23,125 | 21,826 | |||||||||||
Net income | $ | 13,928 | $ | 14,947 | $ | 43,069 | $ | 43,073 | |||||||
The NASDAQ Stock Market National Market Symbol: "SRCE" (CUSIP #336901 10 3) | |||||||||||||||
Please contact us at shareholder@1stsource.com |