Sign In  |  Register  |  About Corte Madera  |  Contact Us

Corte Madera, CA
September 01, 2020 10:27am
7-Day Forecast | Traffic
  • Search Hotels in Corte Madera

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

1st Source Corporation Reports Record First Quarter Results, Cash Dividend Increased

QUARTERLY HIGHLIGHTS

  • Net income was a record $28.11 million for the quarter, up 71.24% from the first quarter of 2020. Diluted net income per common share was also a record at $1.10, up from the prior year’s first quarter of $0.64.
  • Cash dividend of $0.30 per common share approved, up 7.14% from the $0.28 per common share declared a year ago.
  • Return on average assets of 1.55% and return on average common shareholders’ equity of 12.74% compared to 1.00% and 7.81%, respectively in the first quarter of 2020.
  • Average loans and leases were relatively flat from the previous quarter and up $400.61 million or 7.86% from the first quarter of 2020. Excluding the Paycheck Protection Program, average loans and leases increased slightly from the previous quarter and the decreased slightly from the first quarter of 2020.
  • Average deposits were stable from the previous quarter and grew $708.10 million or 13.43% from the first quarter of 2020.
  • Net charge-offs were $3.50 million and nonperforming assets to loans and leases were 1.12% compared to $1.81 million and 0.68%, respectively in the first quarter of 2020.
  • Provision for credit losses of $2.40 million compared to $11.35 million in the first quarter of 2020.
  • Net interest income increased $2.57 million, or 4.68% from the first quarter of 2020.
  • Noninterest income increased $1.25 million, or 5.06% from the first quarter of 2020. Excluding leased equipment depreciation, noninterest income increased 15.11%.
  • Noninterest expenses decreased $2.40 million, down 5.15% from the first quarter of 2020. Excluding leased equipment depreciation, noninterest expense decreased 1.80%.

1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported record quarterly net income of $28.11 million for the first quarter of 2021, up 71.24% from the $16.41 million reported in the first quarter a year ago. The net income comparison was positively impacted by a $8.96 million reduction in the provision for credit losses primarily due to stabilizing economic conditions compared to the start of the pandemic a year ago. Although loan growth occurred during the quarter, the majority of the growth was Paycheck Protection Program (PPP) loans which have minimal credit risk.

Diluted net income per common share for the first quarter of 2021 was up 71.88% to $1.10 versus $0.64 in the first quarter of 2020.

At its April 2021 meeting, the Board of Directors approved an increase in the cash dividend to $0.30 per common share, up 7.14% from the $0.28 per common share declared a year ago. The cash dividend is payable to shareholders of record on May 4, 2021 and will be paid on May 14, 2021.

Christopher J. Murphy III, Chairman and Chief Executive Officer, commented, “Throughout the first quarter, our team has been dedicated to serving the needs of our small business clients with their Paycheck Protection Program (PPP) needs. The PPP funds made available through the American Rescue Plan have been vital to the success of small businesses across the Nation, and our team has worked tirelessly to ensure our communities received those dollars and support while available. We made a specific effort to focus on serving minority- and women-owned businesses with this latest round of PPP support, as data shows such businesses were underserved nationally in the previous round of PPP funding. We’re proud to say we have been able to fulfill that objective, and we were able to secure loans for over 400 minority- and women-owned businesses, which represents approximately 15% of our overall efforts in this latest round of PPP funding.

“We were pleased to learn during the first quarter that Forbes had named 1st Source among ‘America’s Best Mid-size Employers,’ as we were one of only 10 Indiana-based companies to be included among the list of 500 companies with over 1,000 employees. This ranking was compiled via survey in partnership with Statista. Fifty thousand participants were asked to rate, on a scale of zero to 10, their willingness to recommend their own employers to friends and family, to nominate organizations other than their own, and to list companies they would not recommend. It’s long been our goal to provide a values-based workplace and culture among our colleagues of which they are all proud, and the achievement of being named among the top mid-size employers in the country lets us know our efforts are making a difference.

“Additionally, we were also honored to receive the ‘Gold Level Award’ in the Community Lender category for the eighth year in a row from the Indiana District of the U.S. Small Business Administration (SBA). The award honors 1st Source Bank for delivering the greatest number of SBA loans in the state of Indiana in 2020 among Community Banks with less than $10 billion in assets, excluding loans associated with PPP. As an organization, we have devoted over 156 years to serving small businesses and we maintain a dedicated SBA Department to ensure the highest level of service to our clients. We’re honored to receive this award for an eighth consecutive year, and we’re also honored that our clients have chosen us as their trusted financial partner. This award is welcome confirmation that we earned that trust through hard work and client support, and we’re committed to continuing that well into the future.

“Throughout the pandemic, our focus has remained on keeping our clients, our colleagues and families safe so we can deliver the highest level of service. As vaccines have rolled out in recent months, and as we closely monitor local infection rates and information from local health officials, we have made the strategic decision to quietly and measuredly relax our by-appointment-only model for visits to our banking center lobbies. Doors are unlocked, and clients are now able to visit with their bankers – masked and socially distanced of course – more spontaneously than has been the case in the last year. We’re confident we are doing our best to ensure the safety and well-being of all those we employ and interact with while also getting back to a sense of “business as usual” for our clients, who have expressed their eagerness to conduct their banking needs in person without making an appointment in advance. As always, we will continue to review and analyze data from local health departments to make the best decisions possible for the health and safety of our team members, clients and communities.

“Lastly, let me comment on our performance in the first quarter. While we are very pleased with our record earnings, a number of items coincided in the quarter which improved our results that may not occur in the future. We received $132.91 million in PPP forgiveness providing $3.98 million in accelerated fee income. Mortgage volumes remained strong and people in our markets received stimulus support from the government. As mentioned earlier, our credit risks reduced substantially due to improvements in the economy and the assistance of PPP to many of our clients. Whether those benefits are sustainable are dependent on the continuing vaccination of people in the communities and businesses we serve, the true opening up of the economy and manufacturing supply chains and housing availability improving,” Mr. Murphy concluded.

FIRST QUARTER 2021 FINANCIAL RESULTS

Loans

Average loans and leases of $5.50 billion increased $400.61 million, up 7.86% in the first quarter of 2021 from the year ago quarter and were relatively flat from the previous quarter. Loan growth is primarily from PPP originations when compared to the first quarter of 2020. During the first quarter 2021, PPP originations totaled $232.44 million which was offset by SBA forgiveness of $132.91 million.

Deposits

Average deposits of $5.98 billion grew $708.10 million for the quarter ended March 31, 2021, up 13.43% from the year ago quarter and were stable from the previous quarter. Deposit growth is primarily from PPP loan fundings and increased consumer deposit levels compared to 2020.

Net Interest Income and Net Interest Margin

First quarter 2021 tax-equivalent net interest income of $57.53 million increased $2.54 million, or 4.61% from the first quarter a year ago and decreased $4.70 million, or 7.55% from the fourth quarter of 2020.

First quarter 2021 net interest margin was 3.35%, a decrease of 22 basis points from the 3.57% for the same period in 2020 and decreased 19 basis points from the previous quarter. First quarter 2021 net interest margin on a fully tax-equivalent basis was 3.35%, a decrease of 23 basis points from the 3.58% for the same period in 2020 and was lower by 20 basis points compared to the previous quarter. The margin continues to experience pressure from the low interest rate environment. PPP loans had a positive impact on the net interest margin of a net 10 basis points for the quarter due to accelerated PPP loan origination fee amortization as a result of SBA forgiveness. We recognized $3.98 million in PPP loan fees during the first quarter of 2021. During the prior quarter, PPP loans had a positive impact on the net interest margin of a net 27 basis points and we recognized $7.84 million in PPP loan fees.

Noninterest Income

First quarter 2021 noninterest income of $25.87 million increased $1.25 million, or 5.06% from the first quarter a year ago and was relatively flat from the fourth quarter of 2020.

Noninterest income during the three months ended March 31, 2021 was higher compared to a year ago mainly from improved mortgage banking income driven by gains on a higher volume of loan sales, increased debit card income, and higher trust and wealth advisory fees as market values improved on assets under management offset by less equipment rental income as demand for leases declined and lower service charges on deposit accounts due to fewer overdraft and non-sufficient fund transactions.

Noninterest Expense

First quarter 2021 noninterest expense of $44.14 million decreased $2.40 million, or 5.15% from the first quarter a year ago and decreased $4.82 million, or 9.85% from the prior quarter. Excluding depreciation on leased equipment, noninterest expenses were down 1.80% from the first quarter a year ago and down 8.31% from the prior quarter.

The decrease in noninterest expense during the first quarter compared to a year ago was mainly due to lower leased equipment depreciation as the average equipment rental portfolio continues to decline, a decreased valuation provision for interest rate swaps with customers, and reduced business development expenses as travel and entertainment continue to be curtailed due to the pandemic offset by higher salaries and wages due to incentive awards and normal merit increases, and increased FDIC insurance premiums due to FDIC assessment credits received in the first quarter of 2020 which was not present in 2021.

The decrease in noninterest expense from the prior quarter was primarily the result of lower salaries and wages was due to a one-time special award made to most employees at the end of 2020 and higher deferred salary expense on PPP loan originations during the quarter, lower leased equipment depreciation as the average equipment rental portfolio continues to decline, decreased group insurance costs on lower seasonal claims, and a lower valuation provision for interest rate swaps with customers.

Credit

The allowance for loan and lease losses as of March 31, 2021 was 2.53% of total loans and leases compared to 2.56% at December 31, 2020 and 2.35% at March 31, 2020 (incurred loss method). The allowance calculation includes PPP loans which are guaranteed by the SBA. Excluding these loans from the calculation results in an allowance of 2.74% at March 31, 2021 compared to 2.73% at December 31, 2020. Net charge-offs of $3.50 million were recorded for the first quarter of 2021 compared with net charge-offs of $1.81 million in the same quarter a year ago and $3.72 million of net charge-offs in the prior quarter. The majority of charge-offs in 2021 were related to the bus division of the auto and light truck portfolio which continues to be impacted by the pandemic shutdowns of events and tourism.

The provision for credit losses was $2.40 million for the first quarter of 2021, a decrease of $8.96 million compared with the same period in 2020 and a decrease of $2.57 million from the fourth quarter of 2020. The ratio of nonperforming assets to loans and leases was 1.12% as of March 31, 2021, compared to 1.16% on December 31, 2020 and 0.68% on March 31, 2020. Excluding PPP loans, the ratio of non-performing assets to loans and leases was 1.22% at March 31, 2021 and 1.24% at December 31, 2020.

Capital

As of March 31, 2021, the common equity-to-assets ratio was 11.87%, compared to 12.12% at December 31, 2020 and 12.63% a year ago. The tangible common equity-to-tangible assets ratio was 10.87% at March 31, 2021 compared to 11.10% at December 31, 2020 and 11.53% a year earlier. The Common Equity Tier 1 ratio, calculated under banking regulatory guidelines, was 13.43% at March 31, 2021 compared to 13.06% at December 31, 2020 and 12.57% a year ago. During the first quarter of 2021, 155,457 shares were repurchased for treasury reducing common shareholders’ equity by $6.62 million.

ABOUT 1ST SOURCE CORPORATION

1st Source common stock is traded on the NASDAQ Global Select Market under “SRCE” and appears in the National Market System tables in many daily newspapers under the code name “1st Src.” Since 1863, 1st Source has been committed to the success of its clients, individuals, businesses and the communities it serves. For more information, visit www.1stsource.com.

1st Source serves the northern half of Indiana and southwest Michigan and is the largest locally controlled financial institution headquartered in the area. While delivering a comprehensive range of consumer and commercial banking services through its community bank offices, 1st Source has distinguished itself with highly personalized services. 1st Source Bank also competes for business nationally by offering specialized financing services for new and used private and cargo aircraft, automobiles for leasing and rental agencies, medium and heavy duty trucks, and construction equipment. The Corporation includes 79 banking centers, 18 1st Source Bank Specialty Finance Group locations nationwide, nine Wealth Advisory Services locations and 10 1st Source Insurance offices.

FORWARD LOOKING STATEMENTS

Except for historical information contained herein, the matters discussed in this document express “forward-looking statements.” Generally, the words “believe,” “contemplate,” “seek,” “plan,” “possible,” “assume,” “expect,” “intend,” “targeted,” “continue,” “remain,” “estimate,” “anticipate,” “project,” “will,” “should,” “indicate,” “would,” “may” and similar expressions indicate forward-looking statements. Those statements, including statements, projections, estimates or assumptions concerning future events or performance, and other statements that are other than statements of historical fact, are subject to material risks and uncertainties. 1st Source cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made.

1st Source may make other written or oral forward-looking statements from time to time. Readers are advised that various important factors could cause 1st Source’s actual results or circumstances for future periods to differ materially from those anticipated or projected in such forward-looking statements. Such factors, among others, include changes in laws, regulations or accounting principles generally accepted in the United States; 1st Source’s competitive position within its markets served; increasing consolidation within the banking industry; unforeseen changes in interest rates; unforeseen downturns in the local, regional or national economies or in the industries in which 1st Source has credit concentrations; and other risks discussed in 1st Source’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, which filings are available from the SEC. 1st Source undertakes no obligation to publicly update or revise any forward-looking statements.

NON-GAAP FINANCIAL MEASURES

The accounting and reporting policies of 1st Source conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures are used by management to evaluate and measure the Company’s performance. Although these non-GAAP financial measures are frequently used by investors to evaluate a financial institution, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. These include taxable-equivalent net interest income (including its individual components), net interest margin (including its individual components), the efficiency ratio, tangible common equity-to-tangible assets ratio and tangible book value per common share. Management believes that these measures provide users of the Company’s financial information a more meaningful view of the performance of the interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures differently.

Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent (“FTE”) basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses and lease depreciation), measures how much it costs to produce one dollar of revenue. Securities gains or losses and lease depreciation are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity-to-tangible assets ratio and tangible book value per common share as useful measurements of the Company’s equity.

See the table marked “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of certain non-GAAP financial measures used by the Company with their most closely related GAAP measures.

Category: Earnings

(charts attached)

 

1st SOURCE CORPORATION

 

 

 

 

 

 

1st QUARTER 2021 FINANCIAL HIGHLIGHTS

 

 

 

 

 

 

(Unaudited - Dollars in thousands, except per share data)

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

March 31,

December 31,

March 31,

 

 

 

 

2021

2020

2020

 

 

 

AVERAGE BALANCES

 

 

 

 

 

 

Assets

$

7,350,413

 

$

7,402,431

 

$

6,611,121

 

 

 

 

Earning assets

6,960,551

 

6,981,460

 

6,181,794

 

 

 

 

Investments

1,230,977

 

1,098,072

 

1,030,640

 

 

 

 

Loans and leases

5,499,009

 

5,517,707

 

5,098,397

 

 

 

 

Deposits

5,980,471

 

5,969,776

 

5,272,376

 

 

 

 

Interest bearing liabilities

4,577,664

 

4,635,661

 

4,415,552

 

 

 

 

Common shareholders’ equity

894,553

 

884,530

 

844,724

 

 

 

 

Total equity

938,451

 

921,913

 

867,605

 

 

 

 

INCOME STATEMENT DATA

 

 

 

 

 

 

Net interest income

$

57,412

 

$

62,107

 

$

54,844

 

 

 

 

Net interest income - FTE(1)

57,533

 

62,234

 

54,995

 

 

 

 

Provision for credit losses

2,398

 

4,970

 

11,353

 

 

 

 

Noninterest income

25,869

 

25,985

 

24,622

 

 

 

 

Noninterest expense

44,140

 

48,964

 

46,535

 

 

 

 

Net income

28,106

 

26,463

 

16,418

 

 

 

 

Net income available to common shareholders

28,105

 

26,464

 

16,413

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

Basic net income per common share

$

1.10

 

$

1.03

 

$

0.64

 

 

 

 

Diluted net income per common share

1.10

 

1.03

 

0.64

 

 

 

 

Common cash dividends declared

0.29

 

0.28

 

0.29

 

 

 

 

Book value per common share(2)

35.27

 

34.93

 

33.32

 

 

 

 

Tangible book value per common share(1)

31.95

 

31.62

 

30.03

 

 

 

 

Market value - High

50.38

 

41.10

 

52.16

 

 

 

 

Market value - Low

38.73

 

30.33

 

26.07

 

 

 

 

Basic weighted average common shares outstanding

25,320,930

 

25,492,140

 

25,523,356

 

 

 

 

Diluted weighted average common shares outstanding

25,320,930

 

25,492,140

 

25,523,356

 

 

 

 

KEY RATIOS

 

 

 

 

 

 

Return on average assets

1.55

%

1.42

%

1.00

%

 

 

 

Return on average common shareholders’ equity

12.74

 

11.90

 

7.81

 

 

 

 

Average common shareholders’ equity to average assets

12.17

 

11.95

 

12.78

 

 

 

 

End of period tangible common equity to tangible assets(1)

10.87

 

11.10

 

11.53

 

 

 

 

Risk-based capital - Common Equity Tier 1(3)

13.43

 

13.06

 

12.57

 

 

 

 

Risk-based capital - Tier 1(3)

15.12

 

14.73

 

13.97

 

 

 

 

Risk-based capital - Total(3)

16.39

 

15.99

 

15.23

 

 

 

 

Net interest margin

3.35

 

3.54

 

3.57

 

 

 

 

Net interest margin - FTE(1)

3.35

 

3.55

 

3.58

 

 

 

 

Efficiency ratio: expense to revenue

53.00

 

55.58

 

58.56

 

 

 

 

Efficiency ratio: expense to revenue - adjusted(1)

50.99

 

53.32

 

55.79

 

 

 

 

Net charge offs to average loans and leases

0.26

 

0.27

 

0.14

 

 

 

 

Loan and lease loss allowance to loans and leases

2.53

 

2.56

 

2.35

 

 

 

 

Nonperforming assets to loans and leases

1.12

 

1.16

 

0.68

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

December 31,

September,

 

June 30,

March 31,

 

2021

2020

2020

 

2020

2020

END OF PERIOD BALANCES

 

 

 

 

 

 

Assets

$

7,511,931

 

$

7,316,411

 

$

7,290,949

 

 

$

7,365,146

 

$

6,735,118

 

Loans and leases

5,523,085

 

5,489,301

 

5,627,036

 

 

5,692,322

 

5,129,514

 

Deposits

6,131,341

 

5,946,028

 

5,896,855

 

 

5,993,456

 

5,275,911

 

Allowance for loan and lease losses

139,550

 

140,654

 

136,817

 

 

131,283

 

120,798

 

Goodwill and intangible assets

83,942

 

83,948

 

83,953

 

 

83,959

 

83,964

 

Common shareholders’ equity

891,295

 

886,845

 

877,754

 

 

864,995

 

850,897

 

Total equity

935,759

 

930,670

 

915,015

 

 

901,653

 

877,302

 

ASSET QUALITY

 

 

 

 

 

 

Loans and leases past due 90 days or more

$

66

 

$

115

 

$

81

 

 

$

256

 

$

191

 

Nonaccrual loans and leases

58,513

 

60,388

 

70,595

 

 

62,800

 

26,301

 

Other real estate

369

 

359

 

303

 

 

303

 

362

 

Repossessions

2,214

 

1,976

 

4,639

 

 

6,132

 

9,020

 

Equipment owned under operating leases

1,647

 

1,695

 

136

 

 

57

 

 

Total nonperforming assets

$

62,809

 

$

64,533

 

$

75,754

 

 

$

69,548

 

$

35,874

 

(1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio.

(2) Calculated as common shareholders’ equity divided by common shares outstanding at the end of the period.

(3) Calculated under banking regulatory guidelines.

 

1st SOURCE CORPORATION

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

 

 

 

 

 

 

 

(Unaudited - Dollars in thousands)

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

September 30,

 

March 31,

 

2021

 

2020

 

2020

 

2020

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

$

69,683

 

 

 

$

74,186

 

 

 

$

62,575

 

 

 

$

72,756

 

 

Federal funds sold and interest bearing deposits with other banks

266,271

 

 

 

168,861

 

 

 

91,641

 

 

 

49,543

 

 

Investment securities available-for-sale

1,291,340

 

 

 

1,197,467

 

 

 

1,083,427

 

 

 

1,057,169

 

 

Other investments

27,429

 

 

 

27,429

 

 

 

27,674

 

 

 

28,414

 

 

Mortgages held for sale

9,351

 

 

 

12,885

 

 

 

20,990

 

 

 

13,449

 

 

Loans and leases, net of unearned discount:

 

 

 

 

 

 

 

Commercial and agricultural

1,238,708

 

 

 

1,186,118

 

 

 

1,418,047

 

 

 

988,115

 

 

Solar

296,124

 

 

 

292,604

 

 

 

263,472

 

 

 

178,347

 

 

Auto and light truck

552,676

 

 

 

542,369

 

 

 

527,582

 

 

 

577,757

 

 

Medium and heavy duty truck

268,636

 

 

 

279,172

 

 

 

271,248

 

 

 

278,076

 

 

Aircraft

873,770

 

 

 

861,460

 

 

 

806,162

 

 

 

773,132

 

 

Construction equipment

705,744

 

 

 

714,888

 

 

 

723,596

 

 

 

718,307

 

 

Commercial real estate

975,383

 

 

 

969,864

 

 

 

961,550

 

 

 

930,757

 

 

Residential real estate and home equity

486,156

 

 

 

511,379

 

 

 

519,881

 

 

 

545,606

 

 

Consumer

125,888

 

 

 

131,447

 

 

 

135,498

 

 

 

139,417

 

 

Total loans and leases

5,523,085

 

 

 

5,489,301

 

 

 

5,627,036

 

 

 

5,129,514

 

 

Allowance for loan and lease losses*

(139,550

)

 

 

(140,654

)

 

 

(136,817

)

 

 

(120,798

)

 

Net loans and leases

5,383,535

 

 

 

5,348,647

 

 

 

5,490,219

 

 

 

5,008,716

 

 

Equipment owned under operating leases, net

61,395

 

 

 

65,040

 

 

 

79,703

 

 

 

101,238

 

 

Net premises and equipment

48,288

 

 

 

49,373

 

 

 

49,933

 

 

 

52,431

 

 

Goodwill and intangible assets

83,942

 

 

 

83,948

 

 

 

83,953

 

 

 

83,964

 

 

Accrued income and other assets

270,697

 

 

 

288,575

 

 

 

300,834

 

 

 

267,438

 

 

Total assets

$

7,511,931

 

 

 

$

7,316,411

 

 

 

$

7,290,949

 

 

 

$

6,735,118

 

 

LIABILITIES

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Noninterest-bearing demand

$

1,833,116

 

 

 

$

1,636,684

 

 

 

$

1,720,768

 

 

 

$

1,219,327

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

Interest-bearing demand

2,068,382

 

 

 

2,059,139

 

 

 

1,885,771

 

 

 

1,591,419

 

 

Savings

1,148,823

 

 

 

1,082,848

 

 

 

992,320

 

 

 

840,606

 

 

Time

1,081,020

 

 

 

1,167,357

 

 

 

1,297,996

 

 

 

1,624,559

 

 

Total interest-bearing deposits

4,298,225

 

 

 

4,309,344

 

 

 

4,176,087

 

 

 

4,056,584

 

 

Total deposits

6,131,341

 

 

 

5,946,028

 

 

 

5,896,855

 

 

 

5,275,911

 

 

Short-term borrowings:

 

 

 

 

 

 

 

Federal funds purchased and securities sold under agreements to repurchase

173,302

 

 

 

143,564

 

 

 

158,834

 

 

 

135,942

 

 

Other short-term borrowings

7,299

 

 

 

7,077

 

 

 

6,740

 

 

 

146,903

 

 

Total short-term borrowings

180,601

 

 

 

150,641

 

 

 

165,574

 

 

 

282,845

 

 

Long-term debt and mandatorily redeemable securities

81,722

 

 

 

81,864

 

 

 

81,659

 

 

 

81,877

 

 

Subordinated notes

58,764

 

 

 

58,764

 

 

 

58,764

 

 

 

58,764

 

 

Accrued expenses and other liabilities

123,744

 

 

 

148,444

 

 

 

173,082

 

 

 

158,419

 

 

Total liabilities

6,576,172

 

 

 

6,385,741

 

 

 

6,375,934

 

 

 

5,857,816

 

 

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 March 31, 2021, December 31, 2020, September 30, 2020, and March 31, 2020, respectively

436,538

 

 

 

436,538

 

 

 

436,538

 

 

 

436,538

 

 

Retained earnings

535,737

 

 

 

514,176

 

 

 

497,419

 

 

 

472,911

 

 

Cost of common stock in treasury (2,936,987, 2,816,557, 2,652,030, and 2,670,290 shares at March 31, 2021, December 31, 2020, September 30, 2020, and

March 31, 2020, respectively)

(88,223

)

 

 

(82,240

)

 

 

(75,861

)

 

 

(76,203

)

 

Accumulated other comprehensive income

7,243

 

 

 

18,371

 

 

 

19,658

 

 

 

17,651

 

 

Total shareholders’ equity

891,295

 

 

 

886,845

 

 

 

877,754

 

 

 

850,897

 

 

Noncontrolling interests

44,464

 

 

 

43,825

 

 

 

37,261

 

 

 

26,405

 

 

Total equity

935,759

 

 

 

930,670

 

 

 

915,015

 

 

 

877,302

 

 

Total liabilities and equity

$

7,511,931

 

 

 

$

7,316,411

 

 

 

$

7,290,949

 

 

 

$

6,735,118

 

 

*ASU 2016-13 adopted during the fourth quarter of 2020 therefore September 30, 2020 and March 31, 2020 allowance amounts reflect the incurred loss method.

 

1st SOURCE CORPORATION

 

 

 

 

 

CONSOLIDATED STATEMENTS OF INCOME

 

 

 

 

 

(Unaudited - Dollars in thousands, except per share amounts)

 

 

 

 

 

Three Months Ended

 

March 31,

 

December 31,

 

March 31,

 

2021

 

2020

 

2020

Interest income:

 

 

 

 

 

Loans and leases

$

57,864

 

 

 

$

64,113

 

 

$

61,526

 

 

Investment securities, taxable

3,988

 

 

 

3,940

 

 

5,550

 

 

Investment securities, tax-exempt

174

 

 

 

192

 

 

264

 

 

Other

266

 

 

 

333

 

 

346

 

 

Total interest income

62,292

 

 

 

68,578

 

 

67,686

 

 

Interest expense:

 

 

 

 

 

Deposits

3,526

 

 

 

4,811

 

 

10,851

 

 

Short-term borrowings

36

 

 

 

90

 

 

254

 

 

Subordinated notes

818

 

 

 

824

 

 

884

 

 

Long-term debt and mandatorily redeemable securities

500

 

 

 

746

 

 

853

 

 

Total interest expense

4,880

 

 

 

6,471

 

 

12,842

 

 

Net interest income

57,412

 

 

 

62,107

 

 

54,844

 

 

Provision for credit losses*

2,398

 

 

 

4,970

 

 

11,353

 

 

Net interest income after provision for loan and lease losses

55,014

 

 

 

57,137

 

 

43,491

 

 

Noninterest income:

 

 

 

 

 

Trust and wealth advisory

5,481

 

 

 

5,524

 

 

4,848

 

 

Service charges on deposit accounts

2,447

 

 

 

2,634

 

 

2,605

 

 

Debit card

4,182

 

 

 

3,990

 

 

3,373

 

 

Mortgage banking

3,901

 

 

 

3,549

 

 

2,336

 

 

Insurance commissions

2,152

 

 

 

1,624

 

 

1,881

 

 

Equipment rental

4,629

 

 

 

5,167

 

 

6,630

 

 

Gains on investment securities available-for-sale

 

 

 

 

 

280

 

 

Other

3,077

 

 

 

3,497

 

 

2,669

 

 

Total noninterest income

25,869

 

 

 

25,985

 

 

24,622

 

 

Noninterest expense:

 

 

 

 

 

Salaries and employee benefits

25,196

 

 

 

27,547

 

 

24,401

 

 

Net occupancy

2,719

 

 

 

2,539

 

 

2,721

 

 

Furniture and equipment

6,458

 

 

 

6,776

 

 

6,407

 

 

Depreciation – leased equipment

3,773

 

 

 

4,940

 

 

5,427

 

 

Professional fees

1,613

 

 

 

1,576

 

 

1,442

 

 

Supplies and communication

1,475

 

 

 

1,234

 

 

1,634

 

 

FDIC and other insurance

665

 

 

 

851

 

 

288

 

 

Business development and marketing

997

 

 

 

754

 

 

1,359

 

 

Loan and lease collection and repossession

129

 

 

 

444

 

 

763

 

 

Other

1,115

 

 

 

2,303

 

 

2,093

 

 

Total noninterest expense

44,140

 

 

 

48,964

 

 

46,535

 

 

Income before income taxes

36,743

 

 

 

34,158

 

 

21,578

 

 

Income tax expense

8,637

 

 

 

7,695

 

 

5,160

 

 

Net income

28,106

 

 

 

26,463

 

 

16,418

 

 

Net (income) loss attributable to noncontrolling interests

(1

)

 

 

1

 

 

(5

)

 

Net income available to common shareholders

$

28,105

 

 

 

$

26,464

 

 

$

16,413

 

 

Per common share:

 

 

 

 

 

Basic net income per common share

$

1.10

 

 

 

$

1.03

 

 

$

0.64

 

 

Diluted net income per common share

$

1.10

 

 

 

$

1.03

 

 

$

0.64

 

 

Cash dividends

$

0.29

 

 

 

$

0.28

 

 

$

0.29

 

 

Basic weighted average common shares outstanding

25,320,930

 

 

 

25,492,140

 

 

25,523,356

 

 

Diluted weighted average common shares outstanding

25,320,930

 

 

 

25,492,140

 

 

25,523,356

 

 

*ASU 2016-13 adopted during the fourth quarter of 2020 therefore March 31, 2020 provision amount reflects the incurred loss method.

 

1st SOURCE CORPORATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

INTEREST RATES AND INTEREST DIFFERENTIAL

 

 

 

 

 

 

 

 

 

 

(Unaudited - Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

March 31, 2021

 

December 31, 2020

 

March 31, 2020

 

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

$

1,193,583

 

 

 

$

3,987

 

 

 

1.35

%

 

$

1,056,727

 

 

 

$

3,940

 

 

 

1.48

%

 

$

973,421

 

 

 

$

5,550

 

 

 

2.29

%

Tax exempt(1)

37,394

 

 

 

214

 

 

 

2.32

%

 

41,345

 

 

 

237

 

 

 

2.28

%

 

57,219

 

 

 

325

 

 

 

2.28

%

Mortgages held for sale

14,285

 

 

 

86

 

 

 

2.44

%

 

17,844

 

 

 

120

 

 

 

2.68

%

 

11,294

 

 

 

96

 

 

 

3.42

%

Loans and leases, net of unearned discount(1)

5,499,009

 

 

 

57,860

 

 

 

4.27

%

 

5,517,707

 

 

 

64,075

 

 

 

4.62

%

 

5,098,397

 

 

 

61,520

 

 

 

4.85

%

Other investments

216,280

 

 

 

266

 

 

 

0.50

%

 

347,837

 

 

 

333

 

 

 

0.38

%

 

41,463

 

 

 

346

 

 

 

3.36

%

Total earning assets(1)

6,960,551

 

 

 

62,413

 

 

 

3.64

%

 

6,981,460

 

 

 

68,705

 

 

 

3.92

%

 

6,181,794

 

 

 

67,837

 

 

 

4.41

%

Cash and due from banks

75,178

 

 

 

 

 

 

 

75,055

 

 

 

 

 

 

 

65,407

 

 

 

 

 

 

Allowance for loan and lease losses

(143,206

)

 

 

 

 

 

 

(143,888

)

 

 

 

 

 

 

(112,239

)

 

 

 

 

 

Other assets

457,890

 

 

 

 

 

 

 

489,804

 

 

 

 

 

 

 

476,159

 

 

 

 

 

 

Total assets

$

7,350,413

 

 

 

 

 

 

 

$

7,402,431

 

 

 

 

 

 

 

$

6,611,121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

$

4,261,207

 

 

 

$

3,526

 

 

 

0.34

%

 

$

4,272,622

 

 

 

$

4,811

 

 

 

0.45

%

 

$

4,076,270

 

 

 

$

10,851

 

 

 

1.07

%

Short-term borrowings

176,726

 

 

 

36

 

 

 

0.08

%

 

222,699

 

 

 

90

 

 

 

0.16

%

 

202,545

 

 

 

254

 

 

 

0.50

%

Subordinated notes

58,764

 

 

 

818

 

 

 

5.65

%

 

58,764

 

 

 

824

 

 

 

5.58

%

 

58,764

 

 

 

884

 

 

 

6.05

%

Long-term debt and mandatorily redeemable securities

80,967

 

 

 

500

 

 

 

2.50

%

 

81,576

 

 

 

746

 

 

 

3.64

%

 

77,973

 

 

 

853

 

 

 

4.40

%

Total interest-bearing liabilities

4,577,664

 

 

 

4,880

 

 

 

0.43

%

 

4,635,661

 

 

 

6,471

 

 

 

0.56

%

 

4,415,552

 

 

 

12,842

 

 

 

1.17

%

Noninterest-bearing deposits

1,719,264

 

 

 

 

 

 

 

1,697,154

 

 

 

 

 

 

 

1,196,106

 

 

 

 

 

 

Other liabilities

115,034

 

 

 

 

 

 

 

147,703

 

 

 

 

 

 

 

131,858

 

 

 

 

 

 

Shareholders’ equity

894,553

 

 

 

 

 

 

 

884,530

 

 

 

 

 

 

 

844,724

 

 

 

 

 

 

Noncontrolling interests

43,898

 

 

 

 

 

 

 

37,383

 

 

 

 

 

 

 

22,881

 

 

 

 

 

 

Total liabilities and equity

$

7,350,413

 

 

 

 

 

 

 

$

7,402,431

 

 

 

 

 

 

 

$

6,611,121

 

 

 

 

 

 

Less: Fully tax-equivalent adjustments

 

 

(121

)

 

 

 

 

 

 

(127

)

 

 

 

 

 

 

(151

)

 

 

 

Net interest income/margin (GAAP-derived)(1)

 

 

$

57,412

 

 

 

3.35

%

 

 

 

$

62,107

 

 

 

3.54

%

 

 

 

$

54,844

 

 

 

3.57

%

Fully tax-equivalent adjustments

 

 

121

 

 

 

 

 

 

 

127

 

 

 

 

 

 

 

151

 

 

 

 

Net interest income/margin - FTE(1)

 

 

$

57,533

 

 

 

3.35

%

 

 

 

$

62,234

 

 

 

3.55

%

 

 

 

$

54,995

 

 

 

3.58

%

(1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio.

 

1st SOURCE CORPORATION

 

 

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

 

(Unaudited - Dollars in thousands, except per share data)

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31,

December 31,

March 31,

 

 

2021

2020

2020

Calculation of Net Interest Margin

 

 

 

(A)

Interest income (GAAP)

$

62,292

 

 

$

68,578

 

 

$

67,686

 

 

 

Fully tax-equivalent adjustments:

 

 

 

(B)

– Loans and leases

81

 

 

82

 

 

90

 

 

(C)

– Tax exempt investment securities

40

 

 

45

 

 

61

 

 

(D)

Interest income – FTE (A+B+C)

62,413

 

 

68,705

 

 

67,837

 

 

(E)

Interest expense (GAAP)

4,880

 

 

6,471

 

 

12,842

 

 

(F)

Net interest income (GAAP) (A-E)

57,412

 

 

62,107

 

 

54,844

 

 

(G)

Net interest income - FTE (D-E)

57,533

 

 

62,234

 

 

54,995

 

 

(H)

Annualization factor

4.056

 

 

3.978

 

 

4.022

 

 

(I)

Total earning assets

$

6,960,551

 

 

$

6,981,460

 

 

$

6,181,794

 

 

 

Net interest margin (GAAP-derived) (F*H)/I

3.35

 

%

3.54

 

%

3.57

 

%

 

Net interest margin – FTE (G*H)/I

3.35

 

%

3.55

 

%

3.58

 

%

 

 

 

 

 

Calculation of Efficiency Ratio

 

 

 

(F)

Net interest income (GAAP)

$

57,412

 

 

$

62,107

 

 

$

54,844

 

 

(G)

Net interest income – FTE

57,533

 

 

62,234

 

 

54,995

 

 

(J)

Plus: noninterest income (GAAP)

25,869

 

 

25,985

 

 

24,622

 

 

(K)

Less: gains/losses on investment securities and partnership investments

(460

)

 

(714

)

 

(513

)

 

(L)

Less: depreciation – leased equipment

(3,773

)

 

(4,940

)

 

(5,427

)

 

(M)

Total net revenue (GAAP) (F+J)

83,281

 

 

88,092

 

 

79,466

 

 

(N)

Total net revenue – adjusted (G+J–K–L)

79,169

 

 

82,565

 

 

73,677

 

 

(O)

Noninterest expense (GAAP)

44,140

 

 

48,964

 

 

46,535

 

 

(L)

Less:depreciation – leased equipment

(3,773

)

 

(4,940

)

 

(5,427

)

 

(P)

Noninterest expense – adjusted (O–L)

40,367

 

 

44,024

 

 

41,108

 

 

 

Efficiency ratio (GAAP-derived) (O/M)

53.00

 

%

55.58

 

%

58.56

 

%

 

Efficiency ratio – adjusted (P/N)

50.99

 

%

53.32

 

%

55.79

 

%

 

 

 

 

 

 

 

End of Period

 

 

March 31,

December 31,

March 31,

 

 

2021

2020

2020

Calculation of Tangible Common Equity-to-Tangible Assets Ratio

 

 

(Q)

Total common shareholders’ equity (GAAP)

$

891,295

 

 

$

886,845

 

 

$

850,897

 

 

(R)

Less: goodwill and intangible assets

(83,942

)

 

(83,948

)

 

(83,964

)

 

(S)

Total tangible common shareholders’ equity (Q–R)

$

807,353

 

 

$

802,897

 

 

$

766,933

 

 

(T)

Total assets (GAAP)

7,511,931

 

 

7,316,411

 

 

6,735,118

 

 

(R)

Less: goodwill and intangible assets

(83,942

)

 

(83,948

)

 

(83,964

)

 

(U)

Total tangible assets (T–R)

$

7,427,989

 

 

$

7,232,463

 

 

$

6,651,154

 

 

 

Common equity-to-assets ratio (GAAP-derived) (Q/T)

11.87

 

%

12.12

 

%

12.63

 

%

 

Tangible common equity-to-tangible assets ratio (S/U)

10.87

 

%

11.10

 

%

11.53

 

%

 

 

 

 

 

Calculation of Tangible Book Value per Common Share

 

 

 

(Q)

Total common shareholders’ equity (GAAP)

$

891,295

 

 

$

886,845

 

 

$

850,897

 

 

(V)

Actual common shares outstanding

25,268,687

 

 

25,389,117

 

 

25,535,384

 

 

 

Book value per common share (GAAP-derived) (Q/V)*1000

$

35.27

 

 

$

34.93

 

 

$

33.32

 

 

 

Tangible common book value per share (S/V)*1000

$

31.95

 

 

$

31.62

 

 

$

30.03

 

 

The NASDAQ Stock Market National Market Symbol: “SRCE” (CUSIP #336901 10 3)

Please contact us at shareholder@1stsource.com

1st Source Corporation Reports Record First Quarter Results, Cash Dividend Increased

Contacts

Andrea Short

574-235-2000

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 CorteMadera.com & California Media Partners, LLC. All rights reserved.