[July 19, 2018] |
|
1st Source Corporation Reports Record Second Quarter Results, Increased Cash Dividend Declared
1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source
Bank, today reported a record high net income of $21.96 million for the
second quarter of 2018, an improvement of 31.77% compared to $16.67
million reported in the second quarter a year ago, bringing the 2018
year-to-date net income to $41.08 million compared to $32.88 million in
2017, an increase of 24.96%. Income before taxes was $27.50 million
compared to $26.15 million in the second quarter of 2017 and $52.49
million for the first six months of 2018 compared to $51.07 million for
the same period in 2017. The year-to-date pretax income comparison was
positively impacted by increased net interest income of $14.11 million
primarily due to rising lending rates, higher average loan and lease
balances, and recognition of a $0.62 million unaccreted purchase loan
discount and $0.41 million prepayment penalty on two separate early loan
payoffs. These positives were offset by a $4.87 million increase in the
provision for loan and lease losses to support loan and lease growth
along with additional specific reserves on nonaccrual loans and a $9.21
million rise in noninterest expense. Non-recurring 2018 costs were
approximately $2.40 million.
Diluted net income per common share for the second quarter of 2018 was a
record high $0.84, versus $0.64 in the second quarter of 2017. Diluted
net income per common share for the first half of 2018 was $1.57
compared to $1.26 earned a year earlier.
At its July 2018 meeting, the Board of Directors approved a cash
dividend of $0.25 per common share, up 31.58% from the $0.19 per common
share declared a year ago, and up 4.17% from the $0.24 per common share
in the prior quarter. The cash dividend is payable to shareholders of
record on August 6, 2018 and will be paid on August 15, 2018.
According to Christopher J. Murphy III, Chairman, "We are pleased with
our record net income in the second quarter as 1st Source Corporation
continues to experience healthy growth in loans and leases and deposits.
Credit quality remains stable with some deterioration in the
nonperforming loan ratio but with year-to-date net charge-offs of only
$479,000 or 0.02% of average loans and leases. Average loans and leases
were up a solid 10.73% for the quarter, compared to the same period a
year ago. Average deposits were also up with a strong increase of 11.37%
from this time last year. Net interest income has increased 15.94% from
the second quarter 2017, and noninterest income increased 3.68% while
noninterest expense growth increased by 11.61% over the same quarter in
2017."
"We have had a busy summer with renovations in the South Bend region. In
May, we celebrated the completion of our Granger Martin's banking center
remodel, leading the way to bring side-by-side banking to the S.R. 23
corridor, in the Mishawaka-Granger area. In August, we will complete the
remodels for our BankMart and Granger banking centers. Also coming in
August, we will open a banking center on the campus of Indiana
University South Bend - subject to final regulatory approval. With many
of our own colleagues achieving a diploma or attending classes at the
University, it is an outstanding partner for us. This expansion will
help build upon our already strong relationship with the University and
underscores our commitment to relationship banking, distinctive
convenience, and community partnerships."
"We are pleased to announce that Forbes has identified 1st Source
Bank as the top ranked bank headquartered in Indiana. Forbes
recently conducted a survey to rank the best banks and credit unions in
every state. Banks and credit unions were rated by more than 25,000
respondents on overall recommendations and satisfaction, as well as five
subdimensions: trust, terms and conditions, branch services, digital
services, and financial advice. We remain grateful to our customers and
the community for this award. As always, we are committed to providing
outstanding service to our clients whether they prefer to bank with us
in person, online, or with their mobile device using our highly rated
app." Mr. Murphy concluded.
SECOND QUARTER 2018 FINANCIAL RESULTS
Loans
Average loans and leases of $4.77 billion increased $462.09 million, up
10.73% in the second quarter of 2018 from the year ago quarter and have
increased $181.58 million, up 3.96% from the first quarter. Year-to-date
average loans and leases of $4.68 billion increased $431.99 million, up
10.17% from the first six months of 2017.
Deposits
Average deposits of $4.96 billion grew $506.50 million, up 11.37% for
the quarter ended June 30, 2018 from the year ago quarter and have
increased $253.03 million, up 5.37% compared to the first quarter.
Average deposits for the first six months of 2018 were $4.84 billion, an
increase of $458.26 million, up 10.47% from the same period a year ago.
Net Interest Income and Net Interest Margin
Second quarter 2018 net interest income of $53.17 million increased
$7.31 million, up 15.94% from the second quarter a year ago and
increased $2.64 million, up 5.22% from the first quarter.
For the first six months of 2018, tax-equivalent net interest income was
$104.12 million, an increase of $13.61 million, up 15.04% compared to
the same period a year ago.
Second quarter 2018 net interest margin was 3.69%, an improvement of 16
basis points from the 3.53% for the same period in 2017 and remained
stable with the first quarter. Second quarter 2018 net interest margin
on a fully tax-equivalent basis was 3.71%, an increase of 14 basis
points from the 3.57% for the same period in 2017 and also remained
stable with the first quarter.
Net interest margin for the first six months of 2018 was 3.69%, an
increase of 18 basis points from the 3.51% for the same period in 2017.
Net interest margin on a fully tax-equivalent basis for the first six
months of 2018 was 3.71%, an increase of 16 basis points from the 3.55%
for the same period in 2017.
Noninterest Income
Second quarter 2018 noninterest income of $25.02 million increased $0.89
million, up 3.68% from the second quarter a year ago and increased $1.22
million, up 5.11% from the first quarter.
For the first six months of 2018, noninterest income was $48.83 million,
an increase of $1.39 million, up 2.92% compared to the same period a
year ago.
The growth in noninterest income during 2018 compared to a year ago was
mainly due to higher equipment rental income resulting from an increase
in the average lease portfolio, improved debit card income due to growth
in those transactions, higher customer swap fees, improved insurance
commissions due to new business, and increased trust and wealth advisory
fees, which were offset by reduced gains on the sale of
available-for-sale equity securities and lower mortgage banking income.
The increase in noninterest income from the first quarter of 2018 was
primarily the result of seasonal trust and wealth advisory tax fees,
increased equipment rental income resulting from an increase in the
average lease portfolio, and further improvement in debit card income
offset by lower insurance contingent commissions and reduced partnership
investment gains.
Noninterest Expense
Second quarter 2018 noninterest expense of $45.88 million increased
$4.77 million or 11.61% from the second quarter a year ago and was flat
from the prior quarter.
For the first six months of 2018, noninterest expense was $91.43
million, an increase of $9.21 million, or 11.20% compared to the same
period a year ago.
Excluding depreciation on leased equipment, noninterest expenses were up
12.59% and 11.49% for the second quarter and first six months of 2018,
respectively.
The increase in noninterest expense from the same periods a year ago was
primarily due to higher salaries as a result of normal merit increases
and incentive compensation, increased group insurance costs, a rise in
furniture and equipment expense due to increased software maintenance
costs and computer processing charges, higher depreciation on leased
equipment as the lease portfolio grew and higher valuation adjustments
on repossessed assets. In addition, non-recurring 2018 costs were
approximately $2.40 million due to consulting fees for a customer
relationship management project, a regulatory compliance project, and
information technology projects of $1.20 million, repossessed asset
valuation adjustments of $0.90 million, and trust losses of $0.30
million.
Noninterest expense was relatively flat from the first quarter of 2018.
Increased group insurance costs were offset by reduced valuation
adjustments on repossessed assets as the primary factors.
Credit
The reserve for loan and lease losses as of June 30, 2018 was 2.13% of
total loans and leases compared to 2.10% at March 31, 2018 and June 30,
2017. Net charge-offs of $0.14 million were recorded for the second
quarter of 2018 compared with net charge-offs of $0.94 million in the
same quarter a year ago and down from the $0.34 million of net
charge-offs in the first quarter. Year-to-date net charge-offs of $0.48
million have been recorded in 2018, compared to net charge-offs of $0.37
million for the first half of 2017.
The provision for loan and lease losses was $4.82 million for the second
quarter and $8.60 million for the first six months of 2018, an increase
of $2.08 million and $4.87 million, respectively, compared with the same
periods in 2017.
The ratio of nonperforming assets to loans and leases was 0.89% as of
June 30, 2018, compared to 0.66% on June 30, 2017 and 0.74% on March 31,
2018.
Capital
As of June 30, 2018, the common equity-to-assets ratio was 11.71%,
compared to 11.99% at March 31, 2018 and 12.29% a year ago. The tangible
common equity-to-tangible assets ratio was 10.52% at June 30, 2018 and
10.75% at March 31, 2018 compared to 10.98% a year earlier. The Common
Equity Tier 1 ratio, calculated under banking regulatory guidelines, was
12.15% at June 30, 2018 compared to 12.22% at March 31, 2018 and 12.43%
a year ago.
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 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, 23 1st Source Bank Specialty Finance Group locations
nationwide, eight Wealth Advisory Services locations and ten 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.
(charts attached)
|
1st SOURCE CORPORATION
|
2nd QUARTER 2018 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,
|
|
|
2018
|
2018
|
2017
|
|
2018
|
2017
|
AVERAGE BALANCES
|
|
|
|
|
|
|
|
Assets
|
|
$
|
6,167,017
|
|
$
|
5,939,574
|
|
$
|
5,586,192
|
|
|
$
|
6,053,924
|
|
$
|
5,512,131
|
|
Earning assets
|
|
5,776,822
|
|
5,552,779
|
|
5,205,508
|
|
|
5,665,419
|
|
5,140,819
|
|
Investments
|
|
948,335
|
|
916,979
|
|
836,915
|
|
|
932,744
|
|
838,093
|
|
Loans and leases
|
|
4,770,361
|
|
4,588,782
|
|
4,308,276
|
|
|
4,680,073
|
|
4,248,088
|
|
Deposits
|
|
4,961,473
|
|
4,708,439
|
|
4,454,975
|
|
|
4,835,655
|
|
4,377,400
|
|
Interest bearing liabilities
|
|
4,370,692
|
|
4,154,214
|
|
3,882,915
|
|
|
4,263,051
|
|
3,815,706
|
|
Common shareholders' equity
|
|
736,310
|
|
726,242
|
|
697,229
|
|
|
731,304
|
|
690,476
|
|
|
|
|
|
|
|
|
|
INCOME STATEMENT DATA
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
53,169
|
|
$
|
50,532
|
|
$
|
45,861
|
|
|
$
|
103,701
|
|
$
|
89,588
|
|
Net interest income - FTE(1)
|
|
53,372
|
|
50,744
|
|
46,319
|
|
|
104,116
|
|
90,507
|
|
Provision for loan and lease losses
|
|
4,817
|
|
3,786
|
|
2,738
|
|
|
8,603
|
|
3,738
|
|
Noninterest income
|
|
25,023
|
|
23,807
|
|
24,136
|
|
|
48,830
|
|
47,443
|
|
Noninterest expense
|
|
45,877
|
|
45,557
|
|
41,105
|
|
|
91,434
|
|
82,224
|
|
Net income
|
|
21,964
|
|
19,116
|
|
16,669
|
|
|
41,080
|
|
32,875
|
|
|
|
|
|
|
|
|
|
PER SHARE DATA
|
|
|
|
|
|
|
|
Basic net income per common share
|
|
$
|
0.84
|
|
$
|
0.73
|
|
$
|
0.64
|
|
|
$
|
1.57
|
|
$
|
1.26
|
|
Diluted net income per common share
|
|
0.84
|
|
0.73
|
|
0.64
|
|
|
1.57
|
|
1.26
|
|
Common cash dividends declared
|
|
0.24
|
|
0.22
|
|
0.19
|
|
|
0.46
|
|
0.37
|
|
Book value per common share
|
|
28.51
|
|
27.96
|
|
26.96
|
|
|
28.51
|
|
26.96
|
|
Tangible book value per common share(1)
|
|
25.27
|
|
24.72
|
|
23.73
|
|
|
25.27
|
|
23.73
|
|
Market value - High
|
|
56.77
|
|
54.65
|
|
50.78
|
|
|
56.77
|
|
50.78
|
|
Market value - Low
|
|
49.58
|
|
48.26
|
|
43.58
|
|
|
48.26
|
|
42.15
|
|
Basic weighted average common shares outstanding
|
|
25,958,128
|
|
25,950,386
|
|
25,927,032
|
|
|
25,954,278
|
|
25,915,280
|
|
Diluted weighted average common shares outstanding
|
|
25,958,128
|
|
25,950,386
|
|
25,927,032
|
|
|
25,954,278
|
|
25,915,280
|
|
|
|
|
|
|
|
|
|
KEY RATIOS
|
|
|
|
|
|
|
|
Return on average assets
|
|
1.43
|
%
|
1.31
|
%
|
1.20
|
%
|
|
1.37
|
%
|
1.20
|
%
|
Return on average common shareholders' equity
|
|
11.96
|
|
10.67
|
|
9.59
|
|
|
11.33
|
|
9.60
|
|
Average common shareholders' equity to average assets
|
|
11.94
|
|
12.23
|
|
12.48
|
|
|
12.08
|
|
12.53
|
|
End of period tangible common equity to tangible assets(1)
|
|
10.52
|
|
10.75
|
|
10.98
|
|
|
10.52
|
|
10.98
|
|
Risk-based capital - Common Equity Tier 1(2)
|
|
12.15
|
|
12.22
|
|
12.43
|
|
|
12.15
|
|
12.43
|
|
Risk-based capital - Tier 1(2)
|
|
13.18
|
|
13.29
|
|
13.58
|
|
|
13.18
|
|
13.58
|
|
Risk-based capital - Total(2)
|
|
14.44
|
|
14.54
|
|
14.88
|
|
|
14.44
|
|
14.88
|
|
Net interest margin
|
|
3.69
|
|
3.69
|
|
3.53
|
|
|
3.69
|
|
3.51
|
|
Net interest margin - FTE(1)
|
|
3.71
|
|
3.71
|
|
3.57
|
|
|
3.71
|
|
3.55
|
|
Efficiency ratio: expense to revenue
|
|
58.67
|
|
61.28
|
|
58.72
|
|
|
59.94
|
|
60.00
|
|
Efficiency ratio: expense to revenue - adjusted(1)
|
|
54.71
|
|
57.47
|
|
54.66
|
|
|
56.05
|
|
56.20
|
|
Net charge offs to average loans and leases
|
|
0.01
|
|
0.03
|
|
0.09
|
|
|
0.02
|
|
0.02
|
|
Loan and lease loss reserve to loans and leases
|
|
2.13
|
|
2.10
|
|
2.10
|
|
|
2.13
|
|
2.10
|
|
Nonperforming assets to loans and leases
|
|
0.89
|
|
0.74
|
|
0.66
|
|
|
0.89
|
|
0.66
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
March 31,
|
December 31,
|
|
September 30,
|
June 30,
|
|
|
2018
|
2018
|
2017
|
|
2017
|
2017
|
END OF PERIOD BALANCES
|
|
|
|
|
|
|
|
Assets
|
|
$
|
6,320,058
|
|
$
|
6,051,463
|
|
$
|
5,887,284
|
|
|
$
|
5,806,735
|
|
$
|
5,687,230
|
|
Loans and leases
|
|
4,839,823
|
|
4,691,097
|
|
4,527,678
|
|
|
4,436,718
|
|
4,381,314
|
|
Deposits
|
|
5,108,439
|
|
4,781,325
|
|
4,752,730
|
|
|
4,573,712
|
|
4,482,036
|
|
Reserve for loan and lease losses
|
|
103,007
|
|
98,331
|
|
94,883
|
|
|
93,372
|
|
91,914
|
|
Goodwill and intangible assets
|
|
84,104
|
|
84,124
|
|
83,742
|
|
|
83,795
|
|
83,848
|
|
Common shareholders' equity
|
|
740,277
|
|
725,609
|
|
718,537
|
|
|
710,497
|
|
699,202
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY
|
|
|
|
|
|
|
|
Loans and leases past due 90 days or more
|
|
$
|
263
|
|
$
|
123
|
|
$
|
459
|
|
|
$
|
208
|
|
$
|
178
|
|
Nonaccrual loans and leases
|
|
34,582
|
|
25,360
|
|
19,405
|
|
|
15,066
|
|
15,923
|
|
Other real estate
|
|
133
|
|
1,184
|
|
1,312
|
|
|
1,341
|
|
710
|
|
Repossessions
|
|
9,389
|
|
9,432
|
|
10,114
|
|
|
12,913
|
|
13,052
|
|
Equipment owned under operating leases
|
|
-
|
|
2
|
|
9
|
|
|
14
|
|
21
|
|
Total nonperforming assets
|
|
$
|
44,367
|
|
$
|
36,101
|
|
$
|
31,299
|
|
|
$
|
29,542
|
|
$
|
29,884
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
See "Reconciliation of Non-GAAP Financial Measures" for more
information on this performance measure/ratio.
|
(2)
|
|
Calculated under banking regulatory guidelines.
|
|
|
|
|
1st SOURCE CORPORATION
|
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
|
(Unaudited - Dollars in thousands)
|
|
|
June 30,
|
|
March 31,
|
|
December 31,
|
|
June 30,
|
|
|
2018
|
|
2018
|
|
2017
|
|
2017
|
ASSETS
|
|
|
|
|
|
|
|
|
Cash and due from banks
|
|
$
|
71,102
|
|
|
$
|
29,404
|
|
|
$
|
73,635
|
|
|
$
|
63,473
|
|
Federal funds sold and interest bearing deposits with other banks
|
|
73,358
|
|
|
21,748
|
|
|
4,398
|
|
|
12,561
|
|
Investment securities available-for-sale
|
|
968,349
|
|
|
942,076
|
|
|
904,033
|
|
|
850,314
|
|
Other investments
|
|
28,159
|
|
|
27,265
|
|
|
25,953
|
|
|
24,238
|
|
Mortgages held for sale
|
|
8,235
|
|
|
8,626
|
|
|
13,123
|
|
|
16,204
|
|
Loans and leases, net of unearned discount:
|
|
|
|
|
|
|
|
|
Commercial and agricultural
|
|
1,047,705
|
|
|
1,011,700
|
|
|
929,997
|
|
|
876,404
|
|
Auto and light truck
|
|
580,045
|
|
|
511,051
|
|
|
496,816
|
|
|
512,021
|
|
Medium and heavy duty truck
|
|
276,273
|
|
|
280,010
|
|
|
296,935
|
|
|
290,687
|
|
Aircraft
|
|
863,496
|
|
|
868,419
|
|
|
844,657
|
|
|
787,516
|
|
Construction equipment
|
|
642,634
|
|
|
619,219
|
|
|
563,437
|
|
|
539,097
|
|
Commercial real estate
|
|
769,659
|
|
|
748,926
|
|
|
741,568
|
|
|
720,078
|
|
Residential real estate and home equity
|
|
524,112
|
|
|
518,130
|
|
|
526,122
|
|
|
526,592
|
|
Consumer
|
|
135,899
|
|
|
133,642
|
|
|
128,146
|
|
|
128,919
|
|
Total loans and leases
|
|
4,839,823
|
|
|
4,691,097
|
|
|
4,527,678
|
|
|
4,381,314
|
|
Reserve for loan and lease losses
|
|
(103,007
|
)
|
|
(98,331
|
)
|
|
(94,883
|
)
|
|
(91,914
|
)
|
Net loans and leases
|
|
4,736,816
|
|
|
4,592,766
|
|
|
4,432,795
|
|
|
4,289,400
|
|
Equipment owned under operating leases, net
|
|
143,024
|
|
|
144,129
|
|
|
139,581
|
|
|
144,509
|
|
Net premises and equipment
|
|
53,363
|
|
|
54,841
|
|
|
54,612
|
|
|
54,783
|
|
Goodwill and intangible assets
|
|
84,104
|
|
|
84,124
|
|
|
83,742
|
|
|
83,848
|
|
Accrued income and other assets
|
|
153,548
|
|
|
146,484
|
|
|
155,412
|
|
|
147,900
|
|
Total assets
|
|
$
|
6,320,058
|
|
|
$
|
6,051,463
|
|
|
$
|
5,887,284
|
|
|
$
|
5,687,230
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
Deposits:
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand
|
|
$
|
1,106,495
|
|
|
$
|
1,030,902
|
|
|
$
|
1,064,271
|
|
|
$
|
979,801
|
|
Interest-bearing deposits:
|
|
|
|
|
|
|
|
|
Interest-bearing demand
|
|
1,651,533
|
|
|
1,514,299
|
|
|
1,554,898
|
|
|
1,519,419
|
|
Savings
|
|
843,558
|
|
|
855,729
|
|
|
863,588
|
|
|
832,341
|
|
Time
|
|
1,506,853
|
|
|
1,380,395
|
|
|
1,269,973
|
|
|
1,150,475
|
|
Total interest-bearing deposits
|
|
4,001,944
|
|
|
3,750,423
|
|
|
3,688,459
|
|
|
3,502,235
|
|
Total deposits
|
|
5,108,439
|
|
|
4,781,325
|
|
|
4,752,730
|
|
|
4,482,036
|
|
Short-term borrowings:
|
|
|
|
|
|
|
|
|
Federal funds purchased and securities sold under agreements to
repurchase
|
|
106,861
|
|
|
143,913
|
|
|
205,834
|
|
|
148,109
|
|
Other short-term borrowings
|
|
170,233
|
|
|
212,051
|
|
|
8,761
|
|
|
158,474
|
|
Total short-term borrowings
|
|
277,094
|
|
|
355,964
|
|
|
214,595
|
|
|
306,583
|
|
Long-term debt and mandatorily redeemable securities
|
|
71,194
|
|
|
71,335
|
|
|
70,060
|
|
|
70,438
|
|
Subordinated notes
|
|
58,764
|
|
|
58,764
|
|
|
58,764
|
|
|
58,764
|
|
Accrued expenses and other liabilities
|
|
64,290
|
|
|
58,466
|
|
|
72,598
|
|
|
70,207
|
|
Total liabilities
|
|
5,579,781
|
|
|
5,325,854
|
|
|
5,168,747
|
|
|
4,988,028
|
|
|
|
|
|
|
|
|
|
|
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,
2018, March 31, 2018, December 31, 2017, and June 30, 2017,
respectively
|
|
436,538
|
|
|
436,538
|
|
|
436,538
|
|
|
436,538
|
|
Retained earnings
|
|
370,521
|
|
|
354,608
|
|
|
339,959
|
|
|
314,889
|
|
Cost of common stock in treasury (2,240,597, 2,250,503, 2,268,910,
and 2,270,350 shares at June 30, 2018, March 31, 2018, December 31,
2017, and June 30, 2017, respectively)
|
|
(54,367
|
)
|
|
(54,602
|
)
|
|
(54,628
|
)
|
|
(54,662
|
)
|
Accumulated other comprehensive (loss) income
|
|
(12,415
|
)
|
|
(10,935
|
)
|
|
(3,332
|
)
|
|
2,437
|
|
Total shareholders' equity
|
|
740,277
|
|
|
725,609
|
|
|
718,537
|
|
|
699,202
|
|
Total liabilities and shareholders' equity
|
|
$
|
6,320,058
|
|
|
$
|
6,051,463
|
|
|
$
|
5,887,284
|
|
|
$
|
5,687,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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,
|
|
|
2018
|
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Interest income:
|
|
|
|
|
|
|
|
|
|
|
Loans and leases
|
|
$
|
58,520
|
|
|
$
|
53,691
|
|
|
$
|
48,032
|
|
|
$
|
112,211
|
|
|
$
|
92,916
|
Investment securities, taxable
|
|
4,428
|
|
|
4,568
|
|
|
3,370
|
|
|
8,996
|
|
|
6,884
|
Investment securities, tax-exempt
|
|
520
|
|
|
571
|
|
|
677
|
|
|
1,091
|
|
|
1,360
|
Other
|
|
397
|
|
|
408
|
|
|
319
|
|
|
805
|
|
|
610
|
Total interest income
|
|
63,865
|
|
|
59,238
|
|
|
52,398
|
|
|
123,103
|
|
|
101,770
|
Interest expense:
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
8,319
|
|
|
6,562
|
|
|
4,511
|
|
|
14,881
|
|
|
8,245
|
Short-term borrowings
|
|
826
|
|
|
776
|
|
|
272
|
|
|
1,602
|
|
|
499
|
Subordinated notes
|
|
908
|
|
|
883
|
|
|
1,055
|
|
|
1,791
|
|
|
2,110
|
Long-term debt and mandatorily redeemable securities
|
|
643
|
|
|
485
|
|
|
699
|
|
|
1,128
|
|
|
1,328
|
Total interest expense
|
|
10,696
|
|
|
8,706
|
|
|
6,537
|
|
|
19,402
|
|
|
12,182
|
Net interest income
|
|
53,169
|
|
|
50,532
|
|
|
45,861
|
|
|
103,701
|
|
|
89,588
|
Provision for loan and lease losses
|
|
4,817
|
|
|
3,786
|
|
|
2,738
|
|
|
8,603
|
|
|
3,738
|
Net interest income after provision for loan and lease losses
|
|
48,352
|
|
|
46,746
|
|
|
43,123
|
|
|
95,098
|
|
|
85,850
|
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|
Trust and wealth advisory
|
|
5,800
|
|
|
5,188
|
|
|
5,627
|
|
|
10,988
|
|
|
10,628
|
Service charges on deposit accounts
|
|
2,336
|
|
|
2,228
|
|
|
2,464
|
|
|
4,564
|
|
|
4,703
|
Debit card
|
|
3,427
|
|
|
3,103
|
|
|
2,986
|
|
|
6,530
|
|
|
5,736
|
Mortgage banking
|
|
1,073
|
|
|
884
|
|
|
1,304
|
|
|
1,957
|
|
|
2,251
|
Insurance commissions
|
|
1,487
|
|
|
1,958
|
|
|
1,310
|
|
|
3,445
|
|
|
3,077
|
Equipment rental
|
|
8,104
|
|
|
7,755
|
|
|
7,586
|
|
|
15,859
|
|
|
14,418
|
(Losses) gains on investment securities available-for-sale
|
|
-
|
|
|
(345
|
)
|
|
465
|
|
|
(345
|
)
|
|
1,750
|
Other
|
|
2,796
|
|
|
3,036
|
|
|
2,394
|
|
|
5,832
|
|
|
4,880
|
Total noninterest income
|
|
25,023
|
|
|
23,807
|
|
|
24,136
|
|
|
48,830
|
|
|
47,443
|
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits
|
|
23,696
|
|
|
22,531
|
|
|
20,712
|
|
|
46,227
|
|
|
42,057
|
Net occupancy
|
|
2,115
|
|
|
2,866
|
|
|
2,368
|
|
|
4,981
|
|
|
4,962
|
Furniture and equipment
|
|
5,718
|
|
|
5,455
|
|
|
5,108
|
|
|
11,173
|
|
|
9,901
|
Depreciation - leased equipment
|
|
6,684
|
|
|
6,428
|
|
|
6,296
|
|
|
13,112
|
|
|
11,976
|
Professional fees
|
|
1,728
|
|
|
2,017
|
|
|
1,672
|
|
|
3,745
|
|
|
2,749
|
Supplies and communication
|
|
1,499
|
|
|
1,553
|
|
|
1,345
|
|
|
3,052
|
|
|
2,595
|
FDIC and other insurance
|
|
714
|
|
|
698
|
|
|
573
|
|
|
1,412
|
|
|
1,196
|
Business development and marketing
|
|
1,725
|
|
|
1,533
|
|
|
1,501
|
|
|
3,258
|
|
|
3,153
|
Loan and lease collection and repossession
|
|
565
|
|
|
951
|
|
|
329
|
|
|
1,516
|
|
|
965
|
Other
|
|
1,433
|
|
|
1,525
|
|
|
1,201
|
|
|
2,958
|
|
|
2,670
|
Total noninterest expense
|
|
45,877
|
|
|
45,557
|
|
|
41,105
|
|
|
91,434
|
|
|
82,224
|
Income before income taxes
|
|
27,498
|
|
|
24,996
|
|
|
26,154
|
|
|
52,494
|
|
|
51,069
|
Income tax expense
|
|
5,534
|
|
|
5,880
|
|
|
9,485
|
|
|
11,414
|
|
|
18,194
|
Net income
|
|
$
|
21,964
|
|
|
$
|
19,116
|
|
|
$
|
16,669
|
|
|
$
|
41,080
|
|
|
$
|
32,875
|
Per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic net income per common share
|
|
$
|
0.84
|
|
|
$
|
0.73
|
|
|
$
|
0.64
|
|
|
$
|
1.57
|
|
|
$
|
1.26
|
Diluted net income per common share
|
|
$
|
0.84
|
|
|
$
|
0.73
|
|
|
$
|
0.64
|
|
|
$
|
1.57
|
|
|
$
|
1.26
|
Cash dividends
|
|
$
|
0.24
|
|
|
$
|
0.22
|
|
|
$
|
0.19
|
|
|
$
|
0.46
|
|
|
$
|
0.37
|
Basic weighted average common shares outstanding
|
|
25,958,128
|
|
|
25,950,386
|
|
|
25,927,032
|
|
|
25,954,278
|
|
|
25,915,280
|
Diluted weighted average common shares outstanding
|
|
25,958,128
|
|
|
25,950,386
|
|
|
25,927,032
|
|
|
25,954,278
|
|
|
25,915,280
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st SOURCE CORPORATION
|
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY
|
INTEREST RATES AND INTEREST DIFFERENTIAL
|
(Unaudited - Dollars in thousands)
|
|
|
Three Months Ended
|
|
|
June 30, 2018
|
|
March 31, 2018
|
|
June 30, 2017
|
|
|
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
|
|
$
|
851,348
|
|
|
$
|
4,428
|
|
2.09
|
%
|
|
$
|
807,447
|
|
|
$
|
4,568
|
|
2.29
|
%
|
|
$
|
707,373
|
|
|
$
|
3,370
|
|
1.91
|
%
|
Tax exempt(1)
|
|
96,987
|
|
|
634
|
|
2.62
|
%
|
|
109,532
|
|
|
695
|
|
2.57
|
%
|
|
129,542
|
|
|
983
|
|
3.04
|
%
|
Mortgages held for sale
|
|
6,985
|
|
|
92
|
|
5.28
|
%
|
|
7,719
|
|
|
80
|
|
4.20
|
%
|
|
11,325
|
|
|
115
|
|
4.07
|
%
|
Loans and leases, net of unearned discount(1)
|
|
4,770,361
|
|
|
58,517
|
|
4.92
|
%
|
|
4,588,782
|
|
|
53,699
|
|
4.75
|
%
|
|
4,308,276
|
|
|
48,069
|
|
4.48
|
%
|
Other investments
|
|
51,141
|
|
|
397
|
|
3.11
|
%
|
|
39,299
|
|
|
408
|
|
4.21
|
%
|
|
48,992
|
|
|
319
|
|
2.61
|
%
|
Total earning assets(1)
|
|
5,776,822
|
|
|
64,068
|
|
4.45
|
%
|
|
5,552,779
|
|
|
59,450
|
|
4.34
|
%
|
|
5,205,508
|
|
|
52,856
|
|
4.07
|
%
|
Cash and due from banks
|
|
65,895
|
|
|
|
|
|
|
61,395
|
|
|
|
|
|
|
61,801
|
|
|
|
|
|
Reserve for loan and lease losses
|
|
(99,277
|
)
|
|
|
|
|
|
(95,707
|
)
|
|
|
|
|
|
(91,044
|
)
|
|
|
|
|
Other assets
|
|
423,577
|
|
|
|
|
|
|
421,107
|
|
|
|
|
|
|
409,927
|
|
|
|
|
|
Total assets
|
|
$
|
6,167,017
|
|
|
|
|
|
|
$
|
5,939,574
|
|
|
|
|
|
|
$
|
5,586,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
Interest-bearing deposits
|
|
3,950,546
|
|
|
8,319
|
|
0.84
|
%
|
|
3,702,882
|
|
|
6,562
|
|
0.72
|
%
|
|
3,503,444
|
|
|
4,511
|
|
0.52
|
%
|
Short-term borrowings
|
|
290,220
|
|
|
826
|
|
1.14
|
%
|
|
322,257
|
|
|
776
|
|
0.98
|
%
|
|
236,716
|
|
|
272
|
|
0.46
|
%
|
Subordinated notes
|
|
58,764
|
|
|
908
|
|
6.20
|
%
|
|
58,764
|
|
|
883
|
|
6.09
|
%
|
|
58,764
|
|
|
1,055
|
|
7.20
|
%
|
Long-term debt and mandatorily redeemable securities
|
|
71,162
|
|
|
643
|
|
3.62
|
%
|
|
70,311
|
|
|
485
|
|
2.79
|
%
|
|
83,991
|
|
|
699
|
|
3.34
|
%
|
Total interest-bearing liabilities
|
|
4,370,692
|
|
|
10,696
|
|
0.98
|
%
|
|
4,154,214
|
|
|
8,706
|
|
0.85
|
%
|
|
3,882,915
|
|
|
6,537
|
|
0.68
|
%
|
Noninterest-bearing deposits
|
|
1,010,927
|
|
|
|
|
|
|
1,005,557
|
|
|
|
|
|
|
951,531
|
|
|
|
|
|
Other liabilities
|
|
49,088
|
|
|
|
|
|
|
53,561
|
|
|
|
|
|
|
54,517
|
|
|
|
|
|
Shareholders' equity
|
|
736,310
|
|
|
|
|
|
|
726,242
|
|
|
|
|
|
|
697,229
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
6,167,017
|
|
|
|
|
|
|
$
|
5,939,574
|
|
|
|
|
|
|
$
|
5,586,192
|
|
|
|
|
|
Less: Fully tax-equivalent adjustments
|
|
|
|
(203
|
)
|
|
|
|
|
(212
|
)
|
|
|
|
|
(458
|
)
|
|
Net interest income/margin (GAAP-derived)(1)
|
|
|
|
$
|
53,169
|
|
3.69
|
%
|
|
|
|
$
|
50,532
|
|
3.69
|
%
|
|
|
|
$
|
45,861
|
|
3.53
|
%
|
Fully tax-equivalent adjustments
|
|
|
|
203
|
|
|
|
|
|
212
|
|
|
|
|
|
458
|
|
|
Net interest income/margin - FTE(1)
|
|
|
|
$
|
53,372
|
|
3.71
|
%
|
|
|
|
$
|
50,744
|
|
3.71
|
%
|
|
|
|
$
|
46,319
|
|
3.57
|
%
|
|
|
|
|
(1)
|
|
See "Reconciliation of Non-GAAP Financial Measures" for more
information on this performance measure/ratio.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1st SOURCE CORPORATION
|
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY
|
INTEREST RATES AND INTEREST DIFFERENTIAL
|
(Unaudited - Dollars in thousands)
|
|
|
Six Months Ended
|
|
|
June 30, 2018
|
|
June 30, 2017
|
|
|
Average Balance
|
|
Interest Income/ Expense
|
|
Yield/ Rate
|
|
Average Balance
|
|
Interest Income/ Expense
|
|
Yield/ Rate
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable
|
|
$
|
829,519
|
|
|
$
|
8,996
|
|
2.19
|
%
|
|
$
|
707,809
|
|
|
$
|
6,884
|
|
1.96
|
%
|
Tax exempt(1)
|
|
103,225
|
|
|
1,329
|
|
2.60
|
%
|
|
130,284
|
|
|
1,977
|
|
3.06
|
%
|
Mortgages held for sale
|
|
7,350
|
|
|
172
|
|
4.72
|
%
|
|
9,748
|
|
|
196
|
|
4.05
|
%
|
Loans and leases, net of unearned discount(1)
|
|
4,680,073
|
|
|
112,216
|
|
4.84
|
%
|
|
4,248,088
|
|
|
93,022
|
|
4.42
|
%
|
Other investments
|
|
45,252
|
|
|
805
|
|
3.59
|
%
|
|
44,890
|
|
|
610
|
|
2.74
|
%
|
Total earning assets(1)
|
|
5,665,419
|
|
|
123,518
|
|
4.40
|
%
|
|
5,140,819
|
|
|
102,689
|
|
4.03
|
%
|
Cash and due from banks
|
|
63,657
|
|
|
|
|
|
|
60,889
|
|
|
|
|
|
Reserve for loan and lease losses
|
|
(97,502
|
)
|
|
|
|
|
|
(90,635
|
)
|
|
|
|
|
Other assets
|
|
422,350
|
|
|
|
|
|
|
401,058
|
|
|
|
|
|
Total assets
|
|
$
|
6,053,924
|
|
|
|
|
|
|
$
|
5,512,131
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
Interest-bearing deposits
|
|
3,827,398
|
|
|
14,881
|
|
0.78
|
%
|
|
3,424,992
|
|
|
8,245
|
|
0.49
|
%
|
Short-term borrowings
|
|
306,150
|
|
|
1,602
|
|
1.06
|
%
|
|
252,183
|
|
|
499
|
|
0.40
|
%
|
Subordinated notes
|
|
58,764
|
|
|
1,791
|
|
6.15
|
%
|
|
58,764
|
|
|
2,110
|
|
7.24
|
%
|
Long-term debt and mandatorily redeemable securities
|
|
70,739
|
|
|
1,128
|
|
3.22
|
%
|
|
79,767
|
|
|
1,328
|
|
3.36
|
%
|
Total interest-bearing liabilities
|
|
4,263,051
|
|
|
19,402
|
|
0.92
|
%
|
|
3,815,706
|
|
|
12,182
|
|
0.64
|
%
|
Noninterest-bearing deposits
|
|
1,008,257
|
|
|
|
|
|
|
952,408
|
|
|
|
|
|
Other liabilities
|
|
51,312
|
|
|
|
|
|
|
53,541
|
|
|
|
|
|
Shareholders' equity
|
|
731,304
|
|
|
|
|
|
|
690,476
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
6,053,924
|
|
|
|
|
|
|
$
|
5,512,131
|
|
|
|
|
|
Less: Fully tax-equivalent adjustments
|
|
|
|
(415
|
)
|
|
|
|
|
(919
|
)
|
|
Net interest income/margin (GAAP-derived)(1)
|
|
|
|
$
|
103,701
|
|
3.69
|
%
|
|
|
|
$
|
89,588
|
|
3.51
|
%
|
Fully tax-equivalent adjustments
|
|
|
|
415
|
|
|
|
|
|
919
|
|
|
Net interest income/margin - FTE(1)
|
|
|
|
$
|
104,116
|
|
3.71
|
%
|
|
|
|
$
|
90,507
|
|
3.55
|
%
|
|
|
|
(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
|
|
Six Months Ended
|
|
|
|
|
June 30,
|
March 31,
|
June 30,
|
|
June 30,
|
June 30,
|
|
|
|
|
2018
|
2018
|
2017
|
|
2018
|
2017
|
Calculation of Net Interest Margin
|
(A)
|
|
Interest income (GAAP)
|
|
$
|
63,865
|
|
$
|
59,238
|
|
$
|
52,398
|
|
|
$
|
123,103
|
|
$
|
101,770
|
|
|
|
Fully tax-equivalent adjustments:
|
|
|
|
|
|
|
|
(B)
|
|
- Loans and leases
|
|
89
|
|
88
|
|
152
|
|
|
177
|
|
302
|
|
(C)
|
|
- Tax exempt investment securities
|
|
114
|
|
124
|
|
306
|
|
|
238
|
|
617
|
|
(D)
|
|
Interest income - FTE (A+B+C)
|
|
64,068
|
|
59,450
|
|
52,856
|
|
|
123,518
|
|
102,689
|
|
(E)
|
|
Interest expense (GAAP)
|
|
10,696
|
|
8,706
|
|
6,537
|
|
|
19,402
|
|
12,182
|
|
(F)
|
|
Net interest income (GAAP) (A-E)
|
|
53,169
|
|
50,532
|
|
45,861
|
|
|
103,701
|
|
89,588
|
|
(G)
|
|
Net interest income - FTE (D-E)
|
|
53,372
|
|
50,744
|
|
46,319
|
|
|
104,116
|
|
90,507
|
|
(H)
|
|
Annualization factor
|
|
4.011
|
|
4.056
|
|
4.011
|
|
|
2.017
|
|
2.017
|
|
(I)
|
|
Total earning assets
|
|
$
|
5,776,822
|
|
$
|
5,552,779
|
|
$
|
5,205,508
|
|
|
$
|
5,665,419
|
|
$
|
5,140,819
|
|
|
|
Net interest margin (GAAP-derived) (F*H)/I
|
|
3.69
|
%
|
3.69
|
%
|
3.53
|
%
|
|
3.69
|
%
|
3.51
|
%
|
|
|
Net interest margin - FTE (G*H)/I
|
|
3.71
|
%
|
3.71
|
%
|
3.57
|
%
|
|
3.71
|
%
|
3.55
|
%
|
|
|
|
|
|
|
|
|
|
|
Calculation of Efficiency Ratio
|
(F)
|
|
Net interest income (GAAP)
|
|
$
|
53,169
|
|
$
|
50,532
|
|
$
|
45,861
|
|
|
$
|
103,701
|
|
$
|
89,588
|
|
(G)
|
|
Net interest income - FTE
|
|
53,372
|
|
50,744
|
|
46,319
|
|
|
104,116
|
|
90,507
|
|
(J)
|
|
Plus: noninterest income (GAAP)
|
|
25,023
|
|
23,807
|
|
24,136
|
|
|
48,830
|
|
47,443
|
|
(K)
|
|
Less: gains/losses on investment securities and partnership
investments
|
|
(76
|
)
|
(32
|
)
|
(477
|
)
|
|
(108
|
)
|
(1,791
|
)
|
(L)
|
|
Less: depreciation - leased equipment
|
|
(6,684
|
)
|
(6,428
|
)
|
(6,296
|
)
|
|
(13,112
|
)
|
(11,976
|
)
|
(M)
|
|
Total net revenue (GAAP) (F+J)
|
|
78,192
|
|
74,339
|
|
69,997
|
|
|
152,531
|
|
137,031
|
|
(N)
|
|
Total net revenue - adjusted (G+J-K-L)
|
|
71,635
|
|
68,091
|
|
63,682
|
|
|
139,726
|
|
124,183
|
|
(O)
|
|
Noninterest expense (GAAP)
|
|
45,877
|
|
45,557
|
|
41,105
|
|
|
91,434
|
|
82,224
|
|
(L)
|
|
Less:depreciation - leased equipment
|
|
(6,684
|
)
|
(6,428
|
)
|
(6,296
|
)
|
|
(13,112
|
)
|
(11,976
|
)
|
(P)
|
|
Less: contribution expense limited to gains on investment securities
in (K)
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
(462
|
)
|
(Q)
|
|
Noninterest expense - adjusted (O-L-P)
|
|
39,193
|
|
39,129
|
|
34,809
|
|
|
78,322
|
|
69,786
|
|
|
|
Efficiency ratio (GAAP-derived) (O/M)
|
|
58.67
|
%
|
61.28
|
%
|
58.72
|
%
|
|
59.94
|
%
|
60.00
|
%
|
|
|
Efficiency ratio - adjusted (Q/N)
|
|
54.71
|
%
|
57.47
|
%
|
54.66
|
%
|
|
56.05
|
%
|
56.20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
End of Period
|
|
|
|
|
|
|
|
June 30,
|
March 31,
|
June 30,
|
|
|
|
|
|
|
|
2018
|
2018
|
2017
|
|
|
|
Calculation of Tangible Common
Equity-to-Tangible Assets Ratio
|
(R)
|
|
Total common shareholders' equity (GAAP)
|
|
$
|
740,277
|
|
$
|
725,609
|
|
$
|
699,202
|
|
|
|
|
(S)
|
|
Less: goodwill and intangible assets
|
|
(84,104
|
)
|
(84,124
|
)
|
(83,848
|
)
|
|
|
|
(T)
|
|
Total tangible common shareholders' equity (R-S)
|
|
$
|
656,173
|
|
$
|
641,485
|
|
$
|
615,354
|
|
|
|
|
(U)
|
|
Total assets (GAAP)
|
|
6,320,058
|
|
6,051,463
|
|
5,687,230
|
|
|
|
|
(S)
|
|
Less: goodwill and intangible assets
|
|
(84,104
|
)
|
(84,124
|
)
|
(83,848
|
)
|
|
|
|
(V)
|
|
Total tangible assets (U-S)
|
|
$
|
6,235,954
|
|
$
|
5,967,339
|
|
$
|
5,603,382
|
|
|
|
|
|
|
Common equity-to-assets ratio (GAAP-derived) (R/U)
|
|
11.71
|
%
|
11.99
|
%
|
12.29
|
%
|
|
|
|
|
|
Tangible common equity-to-tangible assets ratio (T/V)
|
|
10.52
|
%
|
10.75
|
%
|
10.98
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of Tangible Book Value per
Common Share
|
(R)
|
|
Total common shareholders' equity (GAAP)
|
|
$
|
740,277
|
|
$
|
725,609
|
|
$
|
699,202
|
|
|
|
|
(W)
|
|
Actual common shares outstanding
|
|
25,965,077
|
|
25,955,171
|
|
25,935,324
|
|
|
|
|
|
|
Book value per common share (GAAP-derived) (R/W)*1000
|
|
$
|
28.51
|
|
$
|
27.96
|
|
$
|
26.96
|
|
|
|
|
|
|
Tangible common book value per share (T/W)*1000
|
|
$
|
25.27
|
|
$
|
24.72
|
|
$
|
23.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The NASDAQ Stock Market National Market Symbol: "SRCE" (CUSIP #336901 10
3) Please contact us at [email protected]
View source version on businesswire.com: https://www.businesswire.com/news/home/20180719005836/en/
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