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): July 21, 2016 | ||
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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 21, 2016 | /s/ CHRISTOPHER J. MURPHY III | |
Christopher J. Murphy III | ||
Chairman of the Board and CEO | ||
Date: July 21, 2016 | /s/ ANDREA G. SHORT | |
Andrea G. Short | ||
Treasurer and Chief Financial Officer | ||
Principal Accounting Officer |
For: | Immediate Release | Contact: | Andrea Short |
July 21, 2016 | 574-235-2000 |
• | Net income of $14.48 million and diluted net income per common share of $0.56. |
• | Return on average assets of 1.09% and return on average common shareholders' equity of 8.84%. |
• | Net recoveries of $0.11 million and nonperforming assets to loans and leases of 0.49%. |
• | Average loans and leases grew $304.99 million or 8.03% from the second quarter of 2015. |
• | Average deposits grew $373.33 million or 9.51% from the second quarter of 2015. |
• | Net interest income on a tax-equivalent basis increased $0.68 million or 1.62% from the second quarter of 2015. |
• | Noninterest income increased $0.77 million or 3.56% from the second quarter of 2015 (decreased 2.53% excluding equipment rental income). |
• | Noninterest expenses increased $1.79 million or 4.69% from the second quarter of 2015 (increased 2.20% excluding leased equipment depreciation). |
1st SOURCE CORPORATION | ||||||||||||||||
2nd QUARTER 2016 FINANCIAL HIGHLIGHTS | ||||||||||||||||
(Unaudited - Dollars in thousands, except per share data) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | ||||||||||||
AVERAGE BALANCES | ||||||||||||||||
Assets | $ | 5,343,630 | $ | 5,209,765 | $ | 4,956,246 | $ | 5,276,697 | $ | 4,888,724 | ||||||
Earning assets | 4,986,635 | 4,863,774 | 4,634,091 | 4,925,204 | 4,573,117 | |||||||||||
Investments | 804,856 | 794,849 | 791,569 | 799,853 | 790,073 | |||||||||||
Loans and leases | 4,105,111 | 4,008,435 | 3,800,120 | 4,056,772 | 3,737,449 | |||||||||||
Deposits | 4,300,402 | 4,153,273 | 3,927,077 | 4,226,838 | 3,872,320 | |||||||||||
Interest bearing liabilities | 3,709,706 | 3,607,008 | 3,450,830 | 3,658,357 | 3,407,965 | |||||||||||
Common shareholders’ equity | 659,092 | 649,597 | 632,300 | 654,344 | 627,873 | |||||||||||
INCOME STATEMENT DATA | ||||||||||||||||
Net interest income | $ | 42,293 | $ | 41,289 | $ | 41,665 | $ | 83,582 | $ | 81,101 | ||||||
Net interest income - FTE | 42,753 | 41,750 | 42,072 | 84,503 | 81,926 | |||||||||||
Provision for loan and lease losses | 2,049 | 975 | 811 | 3,024 | 1,168 | |||||||||||
Noninterest income | 22,297 | 21,627 | 21,531 | 43,924 | 41,282 | |||||||||||
Noninterest expense | 40,034 | 40,705 | 38,241 | 80,739 | 76,302 | |||||||||||
Net income | 14,479 | 13,818 | 15,630 | 28,297 | 29,141 | |||||||||||
PER SHARE DATA* | ||||||||||||||||
Basic net income per common share | $ | 0.56 | $ | 0.53 | $ | 0.59 | $ | 1.08 | $ | 1.10 | ||||||
Diluted net income per common share | 0.56 | 0.53 | 0.59 | 1.08 | 1.10 | |||||||||||
Common cash dividends declared | 0.180 | 0.180 | 0.164 | 0.360 | 0.327 | |||||||||||
Book value per common share | 25.59 | 25.14 | 24.11 | 25.59 | 24.11 | |||||||||||
Tangible book value per common share | 22.32 | 21.87 | 20.87 | 22.32 | 20.87 | |||||||||||
Market value - High | 34.83 | 33.50 | 31.75 | 34.83 | 31.75 | |||||||||||
Market value - Low | 30.32 | 27.01 | 27.69 | 27.01 | 26.95 | |||||||||||
Basic weighted average common shares outstanding | 25,853,537 | 25,923,530 | 26,212,999 | 25,888,534 | 26,235,511 | |||||||||||
Diluted weighted average common shares outstanding | 25,853,537 | 25,923,530 | 26,212,999 | 25,888,534 | 26,235,511 | |||||||||||
KEY RATIOS | ||||||||||||||||
Return on average assets | 1.09 | % | 1.07 | % | 1.26 | % | 1.08 | % | 1.20 | % | ||||||
Return on average common shareholders’ equity | 8.84 | 8.56 | 9.91 | 8.70 | 9.36 | |||||||||||
Average common shareholders’ equity to average assets | 12.33 | 12.47 | 12.76 | 12.40 | 12.84 | |||||||||||
End of period tangible common equity to tangible assets | 10.90 | 10.96 | 11.09 | 10.90 | 11.09 | |||||||||||
Risk-based capital - Common Equity Tier 1 | 12.20 | 12.37 | 12.72 | 12.20 | 12.72 | |||||||||||
Risk-based capital - Tier 1 | 13.41 | 13.63 | 14.05 | 13.41 | 14.05 | |||||||||||
Risk-based capital - Total | 14.73 | 14.94 | 15.36 | 14.73 | 15.36 | |||||||||||
Net interest margin | 3.45 | 3.45 | 3.64 | 3.45 | 3.61 | |||||||||||
Efficiency: expense to revenue | 58.76 | 62.28 | 57.74 | 60.50 | 59.85 | |||||||||||
Net charge offs to average loans and leases | (0.01 | ) | (0.02 | ) | (0.07 | ) | (0.02 | ) | (0.02 | ) | ||||||
Loan and lease loss reserve to loans and leases | 2.20 | 2.21 | 2.25 | 2.20 | 2.25 | |||||||||||
Nonperforming assets to loans and leases | 0.49 | 0.51 | 0.55 | 0.49 | 0.55 | |||||||||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||
2016 | 2016 | 2015 | 2015 | 2015 | ||||||||||||
END OF PERIOD BALANCES | ||||||||||||||||
Assets | $ | 5,379,938 | $ | 5,245,610 | $ | 5,187,916 | $ | 5,105,584 | $ | 5,014,023 | ||||||
Loans and leases | 4,152,763 | 4,031,975 | 3,994,692 | 3,955,550 | 3,852,699 | |||||||||||
Deposits | 4,325,084 | 4,225,148 | 4,139,186 | 4,019,156 | 3,962,585 | |||||||||||
Reserve for loan and lease losses | 91,458 | 89,296 | 88,112 | 87,616 | 86,588 | |||||||||||
Intangible assets | 84,386 | 84,530 | 84,676 | 84,822 | 84,967 | |||||||||||
Common shareholders’ equity | 661,757 | 649,973 | 644,053 | 639,221 | 631,631 | |||||||||||
ASSET QUALITY | ||||||||||||||||
Loans and leases past due 90 days or more | $ | 275 | $ | 728 | $ | 122 | $ | 411 | $ | 278 | ||||||
Nonaccrual loans and leases | 12,579 | 12,982 | 12,718 | 18,985 | 15,082 | |||||||||||
Other real estate | 452 | 330 | 736 | 232 | 301 | |||||||||||
Former bank premises held for sale | — | — | — | 515 | 626 | |||||||||||
Repossessions | 7,619 | 7,201 | 6,927 | 6,602 | 5,433 | |||||||||||
Equipment owned under operating leases | 107 | 113 | 121 | 146 | — | |||||||||||
Total nonperforming assets | $ | 21,032 | $ | 21,354 | $ | 20,624 | $ | 26,891 | $ | 21,720 |
1st SOURCE CORPORATION | |||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||||||
(Unaudited - Dollars in thousands) | |||||||||||||||
June 30, | March 31, | December 31, | June 30, | ||||||||||||
2016 | 2016 | 2015 | 2015 | ||||||||||||
ASSETS | |||||||||||||||
Cash and due from banks | $ | 58,944 | $ | 52,373 | $ | 65,171 | $ | 66,302 | |||||||
Federal funds sold and interest bearing deposits with other banks | 14,297 | 32,854 | 14,550 | 11,396 | |||||||||||
Investment securities available-for-sale | 814,258 | 801,950 | 791,727 | 786,471 | |||||||||||
Other investments | 21,973 | 21,973 | 21,973 | 20,743 | |||||||||||
Trading account securities | — | — | — | 211 | |||||||||||
Mortgages held for sale | 15,924 | 11,999 | 9,825 | 14,782 | |||||||||||
Loans and leases, net of unearned discount: | |||||||||||||||
Commercial and agricultural | 759,175 | 749,024 | 744,749 | 719,972 | |||||||||||
Auto and light truck | 457,586 | 428,455 | 425,236 | 446,731 | |||||||||||
Medium and heavy duty truck | 273,674 | 272,917 | 278,254 | 250,045 | |||||||||||
Aircraft | 822,842 | 783,844 | 778,012 | 751,665 | |||||||||||
Construction equipment | 484,354 | 467,782 | 455,565 | 445,479 | |||||||||||
Commercial real estate | 715,932 | 716,610 | 700,268 | 641,205 | |||||||||||
Residential real estate and home equity | 482,979 | 466,450 | 464,129 | 454,730 | |||||||||||
Consumer | 156,221 | 146,893 | 148,479 | 142,872 | |||||||||||
Total loans and leases | 4,152,763 | 4,031,975 | 3,994,692 | 3,852,699 | |||||||||||
Reserve for loan and lease losses | (91,458 | ) | (89,296 | ) | (88,112 | ) | (86,588 | ) | |||||||
Net loans and leases | 4,061,305 | 3,942,679 | 3,906,580 | 3,766,111 | |||||||||||
Equipment owned under operating leases, net | 119,312 | 110,412 | 110,371 | 93,875 | |||||||||||
Net premises and equipment | 54,506 | 54,139 | 53,191 | 50,931 | |||||||||||
Goodwill and intangible assets | 84,386 | 84,530 | 84,676 | 84,967 | |||||||||||
Accrued income and other assets | 135,033 | 132,701 | 129,852 | 118,234 | |||||||||||
Total assets | $ | 5,379,938 | $ | 5,245,610 | $ | 5,187,916 | $ | 5,014,023 | |||||||
LIABILITIES | |||||||||||||||
Deposits: | |||||||||||||||
Noninterest bearing | $ | 944,626 | $ | 926,379 | $ | 902,364 | $ | 857,079 | |||||||
Interest-bearing deposits: | |||||||||||||||
Interest-bearing demand | 1,391,823 | 1,307,142 | 1,350,417 | 1,345,269 | |||||||||||
Savings | 779,899 | 783,412 | 745,661 | 726,853 | |||||||||||
Time | 1,208,736 | 1,208,215 | 1,140,744 | 1,033,384 | |||||||||||
Total interest-bearing deposits | 3,380,458 | 3,298,769 | 3,236,822 | 3,105,506 | |||||||||||
Total deposits | 4,325,084 | 4,225,148 | 4,139,186 | 3,962,585 | |||||||||||
Short-term borrowings: | |||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 161,826 | 169,820 | 130,662 | 122,658 | |||||||||||
Other short-term borrowings | 44,150 | 12,094 | 102,567 | 139,529 | |||||||||||
Total short-term borrowings | 205,976 | 181,914 | 233,229 | 262,187 | |||||||||||
Long-term debt and mandatorily redeemable securities | 64,738 | 68,837 | 57,379 | 57,488 | |||||||||||
Subordinated notes | 58,764 | 58,764 | 58,764 | 58,764 | |||||||||||
Accrued expenses and other liabilities | 63,620 | 60,974 | 55,305 | 41,368 | |||||||||||
Total liabilities | 4,718,182 | 4,595,637 | 4,543,863 | 4,382,392 | |||||||||||
SHAREHOLDERS’ EQUITY | |||||||||||||||
Preferred stock; no par value Authorized 10,000,000 shares; none issued or outstanding | — | — | — | — | |||||||||||
Common stock; no par value Authorized 40,000,000 shares; issued 28,205,674 shares at June 30, 2016, March 31, 2016 and December 31, 2015, respectively and 28,206,076 shares at June 30, 2015* | 436,538 | 436,538 | 436,538 | 436,538 | |||||||||||
Retained earnings* | 270,744 | 260,813 | 251,812 | 232,507 | |||||||||||
Cost of common stock in treasury (2,342,904, 2,356,417, 2,178,090, and 2,009,732 shares at June 30, 2016, March 31, 2016, December 31, 2015, and June 30, 2015, respectively)* | (56,357 | ) | (56,677 | ) | (50,852 | ) | (45,706 | ) | |||||||
Accumulated other comprehensive income | 10,831 | 9,299 | 6,555 | 8,292 | |||||||||||
Total shareholders’ equity | 661,756 | 649,973 | 644,053 | 631,631 | |||||||||||
Total liabilities and shareholders’ equity | $ | 5,379,938 | $ | 5,245,610 | $ | 5,187,916 | $ | 5,014,023 |
1st SOURCE CORPORATION | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
(Unaudited - Dollars in thousands, except per share amounts) | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||
Interest income: | |||||||||||||||||||
Loans and leases | $ | 43,891 | $ | 42,736 | $ | 42,583 | $ | 86,627 | $ | 82,187 | |||||||||
Investment securities, taxable | 3,040 | 3,080 | 2,648 | 6,120 | 5,652 | ||||||||||||||
Investment securities, tax-exempt | 697 | 692 | 754 | 1,389 | 1,523 | ||||||||||||||
Other | 309 | 291 | 229 | 600 | 484 | ||||||||||||||
Total interest income | 47,937 | 46,799 | 46,214 | 94,736 | 89,846 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Deposits | 3,790 | 3,771 | 2,838 | 7,561 | 5,397 | ||||||||||||||
Short-term borrowings | 119 | 161 | 131 | 280 | 234 | ||||||||||||||
Subordinated notes | 1,055 | 1,055 | 1,055 | 2,110 | 2,110 | ||||||||||||||
Long-term debt and mandatorily redeemable securities | 680 | 523 | 525 | 1,203 | 1,004 | ||||||||||||||
Total interest expense | 5,644 | 5,510 | 4,549 | 11,154 | 8,745 | ||||||||||||||
Net interest income | 42,293 | 41,289 | 41,665 | 83,582 | 81,101 | ||||||||||||||
Provision for loan and lease losses | 2,049 | 975 | 811 | 3,024 | 1,168 | ||||||||||||||
Net interest income after provision for loan and lease losses | 40,244 | 40,314 | 40,854 | 80,558 | 79,933 | ||||||||||||||
Noninterest income: | |||||||||||||||||||
Trust fees | 5,108 | 4,623 | 5,247 | 9,731 | 9,804 | ||||||||||||||
Service charges on deposit accounts | 2,276 | 2,107 | 2,367 | 4,383 | 4,564 | ||||||||||||||
Debit card | 2,816 | 2,599 | 2,628 | 5,415 | 5,027 | ||||||||||||||
Mortgage banking | 1,115 | 1,046 | 1,239 | 2,161 | 2,490 | ||||||||||||||
Insurance commissions | 1,233 | 1,563 | 1,382 | 2,796 | 2,687 | ||||||||||||||
Equipment rental | 6,517 | 6,073 | 5,342 | 12,590 | 10,421 | ||||||||||||||
(Losses) gains on investment securities available-for-sale | (209 | ) | 10 | 4 | (199 | ) | 4 | ||||||||||||
Other | 3,441 | 3,606 | 3,322 | 7,047 | 6,285 | ||||||||||||||
Total noninterest income | 22,297 | 21,627 | 21,531 | 43,924 | 41,282 | ||||||||||||||
Noninterest expense: | |||||||||||||||||||
Salaries and employee benefits | 21,194 | 21,351 | 20,794 | 42,545 | 41,719 | ||||||||||||||
Net occupancy | 2,307 | 2,501 | 2,345 | 4,808 | 4,806 | ||||||||||||||
Furniture and equipment | 4,811 | 4,790 | 4,531 | 9,601 | 8,867 | ||||||||||||||
Depreciation - leased equipment | 5,444 | 5,101 | 4,396 | 10,545 | 8,484 | ||||||||||||||
Professional fees | 1,190 | 1,219 | 1,108 | 2,409 | 1,978 | ||||||||||||||
Supplies and communication | 1,374 | 1,508 | 1,409 | 2,882 | 2,815 | ||||||||||||||
FDIC and other insurance | 911 | 879 | 847 | 1,790 | 1,696 | ||||||||||||||
Business development and marketing | 1,025 | 980 | 1,214 | 2,005 | 2,263 | ||||||||||||||
Loan and lease collection and repossession | 385 | 427 | (294 | ) | 812 | 69 | |||||||||||||
Other | 1,393 | 1,949 | 1,891 | 3,342 | 3,605 | ||||||||||||||
Total noninterest expense | 40,034 | 40,705 | 38,241 | 80,739 | 76,302 | ||||||||||||||
Income before income taxes | 22,507 | 21,236 | 24,144 | 43,743 | 44,913 | ||||||||||||||
Income tax expense | 8,028 | 7,418 | 8,514 | 15,446 | 15,772 | ||||||||||||||
Net income | $ | 14,479 | $ | 13,818 | $ | 15,630 | $ | 28,297 | $ | 29,141 | |||||||||
Per common share*: | |||||||||||||||||||
Basic net income per common share | $ | 0.56 | $ | 0.53 | $ | 0.59 | $ | 1.08 | $ | 1.10 | |||||||||
Diluted net income per common share | $ | 0.56 | $ | 0.53 | $ | 0.59 | $ | 1.08 | $ | 1.10 | |||||||||
Cash dividends | $ | 0.180 | $ | 0.180 | $ | 0.164 | $ | 0.360 | $ | 0.327 | |||||||||
Basic weighted average common shares outstanding | 25,853,537 | 25,923,530 | 26,212,999 | 25,888,534 | 26,235,511 | ||||||||||||||
Diluted weighted average common shares outstanding | 25,853,537 | 25,923,530 | 26,212,999 | 25,888,534 | 26,235,511 |
1st SOURCE CORPORATION | ||||||||||||||||||||||||||||||||
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL | ||||||||||||||||||||||||||||||||
(Unaudited - Dollars in thousands) | ||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||
June 30, 2016 | March 31, 2016 | June 30, 2015 | ||||||||||||||||||||||||||||||
Average Balance | Interest Income/Expense | Yield/ Rate | Average Balance | Interest Income/Expense | Yield/ Rate | Average Balance | Interest Income/Expense | Yield/ Rate | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||||||||||||||||||
Taxable | $ | 678,849 | $ | 3,040 | 1.80 | % | $ | 671,989 | $ | 3,080 | 1.84 | % | $ | 667,914 | $ | 2,648 | 1.59 | % | ||||||||||||||
Tax exempt | 126,007 | 1,012 | 3.23 | % | 122,860 | 1,013 | 3.32 | % | 123,655 | 1,111 | 3.60 | % | ||||||||||||||||||||
Mortgages held for sale | 11,100 | 110 | 3.99 | % | 9,137 | 95 | 4.18 | % | 13,452 | 125 | 3.73 | % | ||||||||||||||||||||
Loans and leases, net of unearned discount | 4,105,111 | 43,926 | 4.30 | % | 4,008,435 | 42,781 | 4.29 | % | 3,800,120 | 42,508 | 4.49 | % | ||||||||||||||||||||
Other investments | 65,568 | 309 | 1.90 | % | 51,353 | 291 | 2.28 | % | 28,950 | 229 | 3.17 | % | ||||||||||||||||||||
Total earning assets | 4,986,635 | 48,397 | 3.90 | % | 4,863,774 | 47,260 | 3.91 | % | 4,634,091 | 46,621 | 4.04 | % | ||||||||||||||||||||
Cash and due from banks | 60,786 | 58,851 | 62,452 | |||||||||||||||||||||||||||||
Reserve for loan and lease losses | (90,107 | ) | (88,845 | ) | (86,047 | ) | ||||||||||||||||||||||||||
Other assets | 386,316 | 375,985 | 345,750 | |||||||||||||||||||||||||||||
Total assets | $ | 5,343,630 | $ | 5,209,765 | $ | 4,956,246 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||
Interest-bearing deposits | 3,380,208 | 3,790 | 0.45 | % | 3,254,262 | 3,771 | 0.47 | % | 3,096,622 | 2,838 | 0.37 | % | ||||||||||||||||||||
Short-term borrowings | 204,828 | 119 | 0.23 | % | 231,477 | 161 | 0.28 | % | 238,051 | 131 | 0.22 | % | ||||||||||||||||||||
Subordinated notes | 58,764 | 1,055 | 7.22 | % | 58,764 | 1,055 | 7.22 | % | 58,764 | 1,055 | 7.20 | % | ||||||||||||||||||||
Long-term debt and mandatorily redeemable securities | 65,906 | 680 | 4.15 | % | 62,505 | 523 | 3.37 | % | 57,393 | 525 | 3.67 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 3,709,706 | 5,644 | 0.61 | % | 3,607,008 | 5,510 | 0.61 | % | 3,450,830 | 4,549 | 0.53 | % | ||||||||||||||||||||
Noninterest-bearing deposits | 920,194 | 899,011 | 830,455 | |||||||||||||||||||||||||||||
Other liabilities | 54,638 | 54,149 | 42,661 | |||||||||||||||||||||||||||||
Shareholders’ equity | 659,092 | 649,597 | 632,300 | |||||||||||||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 5,343,630 | $ | 5,209,765 | $ | 4,956,246 | ||||||||||||||||||||||||||
Net interest income | $ | 42,753 | $ | 41,750 | $ | 42,072 | ||||||||||||||||||||||||||
Net interest margin on a tax equivalent basis | 3.45 | % | 3.45 | % | 3.64 | % |
1st SOURCE CORPORATION | |||||||||||||||||||||
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL | |||||||||||||||||||||
(Unaudited - Dollars in thousands) | |||||||||||||||||||||
Six Months Ended | |||||||||||||||||||||
June 30, 2016 | June 30, 2015 | ||||||||||||||||||||
Average Balance | Interest Income/Expense | Yield/ Rate | Average Balance | Interest Income/Expense | Yield/ Rate | ||||||||||||||||
ASSETS | |||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||
Taxable | $ | 675,419 | $ | 6,120 | 1.82 | % | $ | 666,752 | $ | 5,652 | 1.71 | % | |||||||||
Tax exempt | 124,434 | 2,025 | 3.27 | % | 123,321 | 2,245 | 3.67 | % | |||||||||||||
Mortgages held for sale | 10,119 | 205 | 4.07 | % | 13,231 | 251 | 3.83 | % | |||||||||||||
Loans and leases, net of unearned discount | 4,056,772 | 86,707 | 4.30 | % | 3,737,449 | 82,039 | 4.43 | % | |||||||||||||
Other investments | 58,460 | 600 | 2.06 | % | 32,364 | 484 | 3.02 | % | |||||||||||||
Total earning assets | 4,925,204 | 95,657 | 3.91 | % | 4,573,117 | 90,671 | 4.00 | % | |||||||||||||
Cash and due from banks | 59,818 | 62,000 | |||||||||||||||||||
Reserve for loan and lease losses | (89,476 | ) | (85,920 | ) | |||||||||||||||||
Other assets | 381,151 | 339,527 | |||||||||||||||||||
Total assets | $ | 5,276,697 | $ | 4,888,724 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||
Interest-bearing deposits | 3,317,235 | 7,561 | 0.46 | % | 3,063,087 | 5,397 | 0.36 | % | |||||||||||||
Short-term borrowings | 218,153 | 280 | 0.26 | % | 229,050 | 234 | 0.21 | % | |||||||||||||
Subordinated notes | 58,764 | 2,110 | 7.22 | % | 58,764 | 2,110 | 7.24 | % | |||||||||||||
Long-term debt and mandatorily redeemable securities | 64,205 | 1,203 | 3.77 | % | 57,064 | 1,004 | 3.55 | % | |||||||||||||
Total interest-bearing liabilities | 3,658,357 | 11,154 | 0.61 | % | 3,407,965 | 8,745 | 0.52 | % | |||||||||||||
Noninterest-bearing deposits | 909,603 | 809,233 | |||||||||||||||||||
Other liabilities | 54,393 | 43,653 | |||||||||||||||||||
Shareholders’ equity | 654,344 | 627,873 | |||||||||||||||||||
Total liabilities and shareholders’ equity | $ | 5,276,697 | $ | 4,888,724 | |||||||||||||||||
Net interest income | $ | 84,503 | $ | 81,926 | |||||||||||||||||
Net interest margin on a tax equivalent basis | 3.45 | % | 3.61 | % |