Indiana |
0-6233 | 35-1068133 | ||||||
(State or other jurisdiction of incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Common Stock - without par value | SRCE | The NASDAQ Stock Market LLC |
1st SOURCE CORPORATION | ||||||||
(Registrant) | ||||||||
Date: January 18, 2024 | /s/ BRETT A. BAUER | |||||||
Brett A. Bauer | ||||||||
Treasurer and Chief Financial Officer | ||||||||
Principal Accounting Officer |
![]() | |||||||||||
For: | Immediate Release | Contact: | Brett Bauer | ||||||||
January 18, 2024 | 574-235-2000 |
1st SOURCE CORPORATION | ||||||||||||||||||||
4th QUARTER 2023 FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
(Unaudited - Dollars in thousands, except per share data) | ||||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||
AVERAGE BALANCES | ||||||||||||||||||||
Assets | $ | 8,553,500 | $ | 8,417,391 | $ | 8,171,095 | $ | 8,414,797 | $ | 8,073,111 | ||||||||||
Earning assets | 8,071,861 | 7,963,537 | 7,707,769 | 7,956,604 | 7,661,168 | |||||||||||||||
Investments | 1,596,602 | 1,645,906 | 1,795,200 | 1,676,650 | 1,845,351 | |||||||||||||||
Loans and leases | 6,387,858 | 6,245,883 | 5,840,593 | 6,203,857 | 5,566,701 | |||||||||||||||
Deposits | 7,068,668 | 6,950,105 | 6,758,465 | 6,957,244 | 6,711,376 | |||||||||||||||
Interest bearing liabilities | 5,678,546 | 5,566,874 | 5,086,446 | 5,522,793 | 5,002,168 | |||||||||||||||
Common shareholders’ equity | 949,939 | 940,544 | 846,449 | 926,935 | 872,721 | |||||||||||||||
Total equity | 1,013,114 | 999,552 | 906,613 | 987,196 | 929,321 | |||||||||||||||
INCOME STATEMENT DATA | ||||||||||||||||||||
Net interest income | $ | 71,330 | $ | 69,236 | $ | 71,455 | $ | 278,647 | $ | 263,469 | ||||||||||
Net interest income - FTE(1) |
71,496 | 69,406 | 71,670 | 279,388 | 264,097 | |||||||||||||||
Provision for credit losses | 1,911 | 859 | 5,342 | 5,866 | 13,245 | |||||||||||||||
Noninterest income | 20,076 | 24,455 | 23,280 | 90,623 | 91,262 | |||||||||||||||
Noninterest expense | 52,972 | 50,166 | 48,377 | 201,724 | 184,699 | |||||||||||||||
Net income | 28,417 | 32,939 | 31,056 | 124,934 | 120,532 | |||||||||||||||
Net income available to common shareholders | 28,429 | 32,939 | 31,068 | 124,927 | 120,509 | |||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Basic net income per common share | $ | 1.15 | $ | 1.32 | $ | 1.25 | $ | 5.03 | $ | 4.84 | ||||||||||
Diluted net income per common share | 1.15 | 1.32 | 1.25 | 5.03 | 4.84 | |||||||||||||||
Common cash dividends declared | 0.34 | 0.32 | 0.32 | 1.30 | 1.26 | |||||||||||||||
Book value per common share(2) |
40.50 | 37.83 | 35.04 | 40.50 | 35.04 | |||||||||||||||
Tangible book value per common share(1) |
37.06 | 34.40 | 31.63 | 37.06 | 31.63 | |||||||||||||||
Market value - High | 56.59 | 49.36 | 59.94 | 56.59 | 59.94 | |||||||||||||||
Market value - Low | 41.30 | 40.96 | 46.40 | 38.77 | 42.29 | |||||||||||||||
Basic weighted average common shares outstanding | 24,430,477 | 24,660,508 | 24,658,294 | 24,615,546 | 24,687,324 | |||||||||||||||
Diluted weighted average common shares outstanding | 24,430,477 | 24,660,508 | 24,658,294 | 24,615,546 | 24,687,324 | |||||||||||||||
KEY RATIOS | ||||||||||||||||||||
Return on average assets | 1.32 | % | 1.55 | % | 1.51 | % | 1.48 | % | 1.49 | % | ||||||||||
Return on average common shareholders’ equity | 11.87 | 13.89 | 14.56 | 13.48 | 13.81 | |||||||||||||||
Average common shareholders’ equity to average assets | 11.11 | 11.17 | 10.36 | 11.02 | 10.81 | |||||||||||||||
End of period tangible common equity to tangible assets(1) |
10.48 | 9.96 | 9.45 | 10.48 | 9.45 | |||||||||||||||
Risk-based capital - Common Equity Tier 1(3) |
13.22 | 13.31 | 13.19 | 13.22 | 13.19 | |||||||||||||||
Risk-based capital - Tier 1(3) |
14.99 | 14.86 | 14.84 | 14.99 | 14.84 | |||||||||||||||
Risk-based capital - Total(3) |
16.25 | 16.12 | 16.10 | 16.25 | 16.10 | |||||||||||||||
Net interest margin | 3.51 | 3.45 | 3.68 | 3.50 | 3.44 | |||||||||||||||
Net interest margin - FTE(1) |
3.51 | 3.46 | 3.69 | 3.51 | 3.45 | |||||||||||||||
Efficiency ratio: expense to revenue | 57.95 | 53.54 | 51.07 | 54.63 | 52.07 | |||||||||||||||
Efficiency ratio: expense to revenue - adjusted(1) |
56.40 | 54.24 | 51.05 | 54.21 | 51.13 | |||||||||||||||
Net (recoveries) charge offs to average loans and leases | (0.10) | 0.02 | 0.12 | (0.04) | 0.03 | |||||||||||||||
Loan and lease loss allowance to loans and leases | 2.26 | 2.27 | 2.32 | 2.26 | 2.32 | |||||||||||||||
Nonperforming assets to loans and leases | 0.37 | 0.27 | 0.45 | 0.37 | 0.45 | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
2023 | 2023 | 2023 | 2023 | 2022 | ||||||||||||||||
END OF PERIOD BALANCES | ||||||||||||||||||||
Assets | $ | 8,727,958 | $ | 8,525,058 | $ | 8,414,818 | $ | 8,329,803 | $ | 8,339,416 | ||||||||||
Loans and leases | 6,518,505 | 6,353,648 | 6,215,343 | 6,116,716 | 6,011,162 | |||||||||||||||
Deposits | 7,038,581 | 6,967,492 | 6,976,518 | 6,801,464 | 6,928,265 | |||||||||||||||
Allowance for loan and lease losses | 147,552 | 144,074 | 143,542 | 142,511 | 139,268 | |||||||||||||||
Goodwill and intangible assets | 83,916 | 83,921 | 83,897 | 83,901 | 83,907 | |||||||||||||||
Common shareholders’ equity | 989,568 | 924,250 | 921,020 | 909,159 | 864,068 | |||||||||||||||
Total equity | 1,068,263 | 982,997 | 980,087 | 968,444 | 923,766 | |||||||||||||||
ASSET QUALITY | ||||||||||||||||||||
Loans and leases past due 90 days or more | $ | 149 | $ | 154 | $ | 56 | $ | 24 | $ | 54 | ||||||||||
Nonaccrual loans and leases | 23,381 | 16,617 | 20,481 | 18,062 | 26,420 | |||||||||||||||
Other real estate | — | 117 | 193 | 117 | 104 | |||||||||||||||
Repossessions | 705 | 233 | 47 | 445 | 327 | |||||||||||||||
Equipment owned under operating leases | — | — | — | — | 22 | |||||||||||||||
Total nonperforming assets | $ | 24,235 | $ | 17,121 | $ | 20,777 | $ | 18,648 | $ | 26,927 |
1st SOURCE CORPORATION | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||||||||||||||
(Unaudited - Dollars in thousands) | |||||||||||||||||||||||
December 31, | September 30, | June 30, | December 31, | ||||||||||||||||||||
2023 | 2023 | 2023 | 2022 | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Cash and due from banks | $ | 77,474 | $ | 75,729 | $ | 86,742 | $ | 84,703 | |||||||||||||||
Federal funds sold and interest bearing deposits with other banks | 52,194 | 35,406 | 25,933 | 38,094 | |||||||||||||||||||
Investment securities available-for-sale |
1,622,600 | 1,605,242 | 1,661,405 | 1,775,128 | |||||||||||||||||||
Other investments | 25,075 | 25,075 | 25,320 | 25,293 | |||||||||||||||||||
Mortgages held for sale | 1,442 | 3,118 | 2,321 | 3,914 | |||||||||||||||||||
Loans and leases, net of unearned discount: | |||||||||||||||||||||||
Commercial and agricultural | 766,223 | 763,051 | 797,188 | 812,031 | |||||||||||||||||||
Renewable energy | 399,708 | 364,949 | 376,905 | 381,163 | |||||||||||||||||||
Auto and light truck | 966,912 | 901,484 | 901,054 | 808,117 | |||||||||||||||||||
Medium and heavy duty truck | 311,947 | 323,202 | 319,634 | 313,862 | |||||||||||||||||||
Aircraft | 1,078,172 | 1,079,581 | 1,060,340 | 1,077,722 | |||||||||||||||||||
Construction equipment | 1,084,752 | 1,062,097 | 1,012,969 | 938,503 | |||||||||||||||||||
Commercial real estate | 1,129,861 | 1,088,199 | 985,323 | 943,745 | |||||||||||||||||||
Residential real estate and home equity | 637,973 | 627,515 | 617,495 | 584,737 | |||||||||||||||||||
Consumer | 142,957 | 143,570 | 144,435 | 151,282 | |||||||||||||||||||
Total loans and leases | 6,518,505 | 6,353,648 | 6,215,343 | 6,011,162 | |||||||||||||||||||
Allowance for loan and lease losses | (147,552) | (144,074) | (143,542) | (139,268) | |||||||||||||||||||
Net loans and leases | 6,370,953 | 6,209,574 | 6,071,801 | 5,871,894 | |||||||||||||||||||
Equipment owned under operating leases, net | 20,366 | 24,096 | 26,582 | 31,700 | |||||||||||||||||||
Net premises and equipment | 46,159 | 43,951 | 44,089 | 44,773 | |||||||||||||||||||
Goodwill and intangible assets | 83,916 | 83,921 | 83,897 | 83,907 | |||||||||||||||||||
Accrued income and other assets | 427,779 | 418,946 | 386,728 | 380,010 | |||||||||||||||||||
Total assets | $ | 8,727,958 | $ | 8,525,058 | $ | 8,414,818 | $ | 8,339,416 | |||||||||||||||
LIABILITIES | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||
Noninterest bearing demand | $ | 1,655,728 | $ | 1,680,725 | $ | 1,721,947 | $ | 1,998,151 | |||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||
Interest-bearing demand | 2,430,833 | 2,416,864 | 2,528,231 | 2,591,464 | |||||||||||||||||||
Savings | 1,213,334 | 1,180,837 | 1,163,166 | 1,198,191 | |||||||||||||||||||
Time | 1,738,686 | 1,689,066 | 1,563,174 | 1,140,459 | |||||||||||||||||||
Total interest-bearing deposits | 5,382,853 | 5,286,767 | 5,254,571 | 4,930,114 | |||||||||||||||||||
Total deposits | 7,038,581 | 6,967,492 | 6,976,518 | 6,928,265 | |||||||||||||||||||
Short-term borrowings: | |||||||||||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 55,809 | 48,335 | 69,308 | 141,432 | |||||||||||||||||||
Other short-term borrowings | 256,550 | 223,757 | 118,377 | 74,097 | |||||||||||||||||||
Total short-term borrowings | 312,359 | 272,092 | 187,685 | 215,529 | |||||||||||||||||||
Long-term debt and mandatorily redeemable securities | 47,911 | 46,533 | 46,649 | 46,555 | |||||||||||||||||||
Subordinated notes | 58,764 | 58,764 | 58,764 | 58,764 | |||||||||||||||||||
Accrued expenses and other liabilities | 202,080 | 197,180 | 165,115 | 166,537 | |||||||||||||||||||
Total liabilities | 7,659,695 | 7,542,061 | 7,434,731 | 7,415,650 | |||||||||||||||||||
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 December 31, 2023, September 30, 2023, June 30, 2023, and December 31, 2022, respectively |
436,538 | 436,538 | 436,538 | 436,538 | |||||||||||||||||||
Retained earnings | 789,842 | 769,603 | 744,442 | 694,862 | |||||||||||||||||||
Cost of common stock in treasury (3,771,070, 3,776,591, 3,523,113, and 3,543,388 shares at December 31, 2023, September 30, 2023, June 30, 2023, and December 31, 2022, respectively) |
(130,489) | (130,579) | (120,410) | (119,642) | |||||||||||||||||||
Accumulated other comprehensive loss | (106,323) | (151,312) | (139,550) | (147,690) | |||||||||||||||||||
Total shareholders’ equity | 989,568 | 924,250 | 921,020 | 864,068 | |||||||||||||||||||
Noncontrolling interests | 78,695 | 58,747 | 59,067 | 59,698 | |||||||||||||||||||
Total equity | 1,068,263 | 982,997 | 980,087 | 923,766 | |||||||||||||||||||
Total liabilities and equity | $ | 8,727,958 | $ | 8,525,058 | $ | 8,414,818 | $ | 8,339,416 |
1st SOURCE CORPORATION | |||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||||||
(Unaudited - Dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Interest income: | |||||||||||||||||||||||||||||
Loans and leases | $ | 107,103 | $ | 100,206 | $ | 79,244 | $ | 387,298 | $ | 263,894 | |||||||||||||||||||
Investment securities, taxable | 5,989 | 5,918 | 6,970 | 24,501 | 26,294 | ||||||||||||||||||||||||
Investment securities, tax-exempt | 314 | 319 | 419 | 1,445 | 1,049 | ||||||||||||||||||||||||
Other | 1,165 | 883 | 627 | 3,663 | 2,579 | ||||||||||||||||||||||||
Total interest income | 114,571 | 107,326 | 87,260 | 416,907 | 293,816 | ||||||||||||||||||||||||
Interest expense: | |||||||||||||||||||||||||||||
Deposits | 38,624 | 34,405 | 12,746 | 123,162 | 25,231 | ||||||||||||||||||||||||
Short-term borrowings | 1,878 | 2,136 | 1,070 | 7,032 | 1,497 | ||||||||||||||||||||||||
Subordinated notes | 1,066 | 1,060 | 972 | 4,174 | 3,550 | ||||||||||||||||||||||||
Long-term debt and mandatorily redeemable securities | 1,673 | 489 | 1,017 | 3,892 | 69 | ||||||||||||||||||||||||
Total interest expense | 43,241 | 38,090 | 15,805 | 138,260 | 30,347 | ||||||||||||||||||||||||
Net interest income | 71,330 | 69,236 | 71,455 | 278,647 | 263,469 | ||||||||||||||||||||||||
Provision for credit losses | 1,911 | 859 | 5,342 | 5,866 | 13,245 | ||||||||||||||||||||||||
Net interest income after provision for credit losses | 69,419 | 68,377 | 66,113 | 272,781 | 250,224 | ||||||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||
Trust and wealth advisory | 5,912 | 5,648 | 5,608 | 23,706 | 23,107 | ||||||||||||||||||||||||
Service charges on deposit accounts | 3,331 | 3,297 | 3,172 | 12,749 | 12,146 | ||||||||||||||||||||||||
Debit card | 4,395 | 4,377 | 4,669 | 17,980 | 18,052 | ||||||||||||||||||||||||
Mortgage banking | 772 | 971 | 819 | 3,471 | 4,122 | ||||||||||||||||||||||||
Insurance commissions | 1,527 | 1,714 | 1,535 | 6,911 | 6,703 | ||||||||||||||||||||||||
Equipment rental | 1,907 | 2,101 | 2,556 | 8,837 | 12,274 | ||||||||||||||||||||||||
Losses on investment securities available-for-sale | (2,882) | — | (184) | (2,926) | (184) | ||||||||||||||||||||||||
Other | 5,114 | 6,347 | 5,105 | 19,895 | 15,042 | ||||||||||||||||||||||||
Total noninterest income | 20,076 | 24,455 | 23,280 | 90,623 | 91,262 | ||||||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||||
Salaries and employee benefits | 29,913 | 28,866 | 27,695 | 115,612 | 105,110 | ||||||||||||||||||||||||
Net occupancy | 2,925 | 2,867 | 2,811 | 11,090 | 10,728 | ||||||||||||||||||||||||
Furniture and equipment | 1,715 | 1,217 | 1,397 | 5,653 | 5,448 | ||||||||||||||||||||||||
Data processing | 6,341 | 6,289 | 5,963 | 25,055 | 22,375 | ||||||||||||||||||||||||
Depreciation — leased equipment | 1,523 | 1,672 | 2,111 | 7,093 | 10,023 | ||||||||||||||||||||||||
Professional fees | 2,556 | 1,763 | 2,039 | 6,705 | 7,280 | ||||||||||||||||||||||||
FDIC and other insurance | 1,624 | 1,598 | 943 | 5,926 | 3,625 | ||||||||||||||||||||||||
Business development and marketing | 2,335 | 1,201 | 1,471 | 7,157 | 5,823 | ||||||||||||||||||||||||
Other | 4,040 | 4,693 | 3,947 | 17,433 | 14,287 | ||||||||||||||||||||||||
Total noninterest expense | 52,972 | 50,166 | 48,377 | 201,724 | 184,699 | ||||||||||||||||||||||||
Income before income taxes | 36,523 | 42,666 | 41,016 | 161,680 | 156,787 | ||||||||||||||||||||||||
Income tax expense | 8,106 | 9,727 | 9,960 | 36,746 | 36,255 | ||||||||||||||||||||||||
Net income | 28,417 | 32,939 | 31,056 | 124,934 | 120,532 | ||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | 12 | — | 12 | (7) | (23) | ||||||||||||||||||||||||
Net income available to common shareholders | $ | 28,429 | $ | 32,939 | $ | 31,068 | $ | 124,927 | $ | 120,509 | |||||||||||||||||||
Per common share: | |||||||||||||||||||||||||||||
Basic net income per common share | $ | 1.15 | $ | 1.32 | $ | 1.25 | $ | 5.03 | $ | 4.84 | |||||||||||||||||||
Diluted net income per common share | $ | 1.15 | $ | 1.32 | $ | 1.25 | $ | 5.03 | $ | 4.84 | |||||||||||||||||||
Cash dividends | $ | 0.34 | $ | 0.32 | $ | 0.32 | $ | 1.30 | $ | 1.26 | |||||||||||||||||||
Basic weighted average common shares outstanding | 24,430,477 | 24,660,508 | 24,658,294 | 24,615,546 | 24,687,324 | ||||||||||||||||||||||||
Diluted weighted average common shares outstanding | 24,430,477 | 24,660,508 | 24,658,294 | 24,615,546 | 24,687,324 |
1st SOURCE CORPORATION | |||||||||||||||||||||||||||||||||||||||||||||||||||||
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(Unaudited - Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Average Balance |
Interest Income/Expense | Yield/ Rate |
Average Balance |
Interest Income/Expense | Yield/ Rate |
Average Balance |
Interest Income/Expense | Yield/ Rate |
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ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Taxable | $ | 1,559,351 | $ | 5,989 | 1.52 | % | $ | 1,605,912 | $ | 5,918 | 1.46 | % | $ | 1,742,567 | $ | 6,970 | 1.59 | % | |||||||||||||||||||||||||||||||||||
Tax-exempt(1) |
37,251 | 392 | 4.17 | % | 39,994 | 397 | 3.94 | % | 52,633 | 525 | 3.96 | % | |||||||||||||||||||||||||||||||||||||||||
Mortgages held for sale | 2,010 | 41 | 8.09 | % | 3,169 | 54 | 6.76 | % | 2,834 | 40 | 5.60 | % | |||||||||||||||||||||||||||||||||||||||||
Loans and leases, net of unearned discount(1) |
6,387,858 | 107,150 | 6.65 | % | 6,245,883 | 100,244 | 6.37 | % | 5,840,593 | 79,313 | 5.39 | % | |||||||||||||||||||||||||||||||||||||||||
Other investments | 85,391 | 1,165 | 5.41 | % | 68,579 | 883 | 5.11 | % | 69,142 | 627 | 3.60 | % | |||||||||||||||||||||||||||||||||||||||||
Total earning assets(1) |
8,071,861 | 114,737 | 5.64 | % | 7,963,537 | 107,496 | 5.36 | % | 7,707,769 | 87,475 | 4.50 | % | |||||||||||||||||||||||||||||||||||||||||
Cash and due from banks | 70,352 | 68,640 | 76,843 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | (146,076) | (145,197) | (137,350) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other assets | 557,363 | 530,411 | 523,833 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 8,553,500 | $ | 8,417,391 | $ | 8,171,095 | |||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 5,383,925 | $ | 38,624 | 2.85 | % | $ | 5,247,332 | $ | 34,405 | 2.60 | % | $ | 4,718,303 | $ | 12,746 | 1.07 | % | |||||||||||||||||||||||||||||||||||
Short-term borrowings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Securties sold under agreements to repurchase | 52,278 | 29 | 0.22 | % | 60,736 | 35 | 0.23 | % | 137,248 | 18 | 0.05 | % | |||||||||||||||||||||||||||||||||||||||||
Other short-term borrowings | 136,814 | 1,849 | 5.36 | % | 153,523 | 2,101 | 5.43 | % | 125,078 | 1,052 | 3.34 | % | |||||||||||||||||||||||||||||||||||||||||
Subordinated notes | 58,764 | 1,066 | 7.20 | % | 58,764 | 1,060 | 7.16 | % | 58,764 | 972 | 6.56 | % | |||||||||||||||||||||||||||||||||||||||||
Long-term debt and mandatorily redeemable securities |
46,765 | 1,673 | 14.19 | % | 46,519 | 489 | 4.17 | % | 47,053 | 1,017 | 8.58 | % | |||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities |
5,678,546 | 43,241 | 3.02 | % | 5,566,874 | 38,090 | 2.71 | % | 5,086,446 | 15,805 | 1.23 | % | |||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits |
1,684,743 | 1,702,773 | 2,040,162 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other liabilities | 177,097 | 148,192 | 137,874 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders’ equity | 949,939 | 940,544 | 846,449 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests | 63,175 | 59,008 | 60,164 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity |
$ | 8,553,500 | $ | 8,417,391 | $ | 8,171,095 | |||||||||||||||||||||||||||||||||||||||||||||||
Less: Fully tax-equivalent adjustments | (166) | (170) | (215) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/margin (GAAP-derived)(1) |
$ | 71,330 | 3.51 | % | $ | 69,236 | 3.45 | % | $ | 71,455 | 3.68 | % | |||||||||||||||||||||||||||||||||||||||||
Fully tax-equivalent adjustments |
166 | 170 | 215 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/margin - FTE(1) |
$ | 71,496 | 3.51 | % | $ | 69,406 | 3.46 | % | $ | 71,670 | 3.69 | % |
1st SOURCE CORPORATION | |||||||||||||||||||||||||||||||||||
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL | |||||||||||||||||||||||||||||||||||
(Unaudited - Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||||||||
Average Balance |
Interest Income/Expense | Yield/ Rate |
Average Balance |
Interest Income/Expense | Yield/ Rate |
||||||||||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||||||||||||||
Taxable | $ | 1,632,567 | $ | 24,501 | 1.50 | % | $ | 1,805,041 | $ | 26,294 | 1.46 | % | |||||||||||||||||||||||
Tax-exempt(1) |
44,083 | 1,805 | 4.09 | % | 40,310 | 1,311 | 3.25 | % | |||||||||||||||||||||||||||
Mortgages held for sale | 2,368 | 155 | 6.55 | % | 5,178 | 217 | 4.19 | % | |||||||||||||||||||||||||||
Loans and leases, net of unearned discount(1) |
6,203,857 | 387,524 | 6.25 | % | 5,566,701 | 264,043 | 4.74 | % | |||||||||||||||||||||||||||
Other investments | 73,729 | 3,663 | 4.97 | % | 243,938 | 2,579 | 1.06 | % | |||||||||||||||||||||||||||
Total earning assets(1) |
7,956,604 | 417,648 | 5.25 | % | 7,661,168 | 294,444 | 3.84 | % | |||||||||||||||||||||||||||
Cash and due from banks | 70,304 | 75,836 | |||||||||||||||||||||||||||||||||
Allowance for loan and lease losses | (144,183) | (133,028) | |||||||||||||||||||||||||||||||||
Other assets | 532,072 | 469,135 | |||||||||||||||||||||||||||||||||
Total assets | $ | 8,414,797 | $ | 8,073,111 | |||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|||||||||||||||||||||||||||||||||||
Interest-bearing deposits | $ | 5,204,095 | $ | 123,162 | 2.37 | % | $ | 4,673,494 | $ | 25,231 | 0.54 | % | |||||||||||||||||||||||
Short-term borrowings: | |||||||||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 78,928 | 136 | 0.17 | % | 166,254 | 85 | 0.05 | % | |||||||||||||||||||||||||||
Other short-term borrowings | 134,683 | 6,896 | 5.12 | % | 48,716 | 1,412 | 2.90 | % | |||||||||||||||||||||||||||
Subordinated notes | 58,764 | 4,174 | 7.10 | % | 58,764 | 3,550 | 6.04 | % | |||||||||||||||||||||||||||
Long-term debt and mandatorily redeemable securities |
46,323 | 3,892 | 8.40 | % | 54,940 | 69 | 0.13 | % | |||||||||||||||||||||||||||
Total interest-bearing liabilities |
5,522,793 | 138,260 | 2.50 | % | 5,002,168 | 30,347 | 0.61 | % | |||||||||||||||||||||||||||
Noninterest-bearing deposits |
1,753,149 | 2,037,882 | |||||||||||||||||||||||||||||||||
Other liabilities | 151,659 | 103,740 | |||||||||||||||||||||||||||||||||
Shareholders’ equity | 926,935 | 872,721 | |||||||||||||||||||||||||||||||||
Noncontrolling interests | 60,261 | 56,600 | |||||||||||||||||||||||||||||||||
Total liabilities and equity |
$ | 8,414,797 | $ | 8,073,111 | |||||||||||||||||||||||||||||||
Less: Fully tax-equivalent adjustments | (741) | (628) | |||||||||||||||||||||||||||||||||
Net interest income/margin (GAAP-derived)(1) |
$ | 278,647 | 3.50 | % | $ | 263,469 | 3.44 | % | |||||||||||||||||||||||||||
Fully tax-equivalent adjustments |
741 | 628 | |||||||||||||||||||||||||||||||||
Net interest income/margin - FTE(1) |
$ | 279,388 | 3.51 | % | $ | 264,097 | 3.45 | % |
1st SOURCE CORPORATION | |||||||||||||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||
(Unaudited - Dollars in thousands, except per share data) | |||||||||||||||||||||||
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||
December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Calculation of Net Interest Margin | |||||||||||||||||||||||
(A) | Interest income (GAAP) | $ | 114,571 | $ | 107,326 | $ | 87,260 | $ | 416,907 | $ | 293,816 | ||||||||||||
Fully tax-equivalent adjustments: | |||||||||||||||||||||||
(B) | - Loans and leases | 88 | 92 | 109 | 381 | 366 | |||||||||||||||||
(C) | - Tax-exempt investment securities | 78 | 78 | 106 | 360 | 262 | |||||||||||||||||
(D) | Interest income - FTE (A+B+C) | 114,737 | 107,496 | 87,475 | 417,648 | 294,444 | |||||||||||||||||
(E) | Interest expense (GAAP) | 43,241 | 38,090 | 15,805 | 138,260 | 30,347 | |||||||||||||||||
(F) | Net interest income (GAAP) (A–E) |
71,330 | 69,236 | 71,455 | 278,647 | 263,469 | |||||||||||||||||
(G) | Net interest income - FTE (D–E) |
71,496 | 69,406 | 71,670 | 279,388 | 264,097 | |||||||||||||||||
(H) | Annualization factor | 3.967 | 3.967 | 3.967 | 1.000 | 1.000 | |||||||||||||||||
(I) | Total earning assets | $ | 8,071,861 | $ | 7,963,637 | $ | 7,707,769 | $ | 7,956,604 | $ | 7,661,168 | ||||||||||||
Net interest margin (GAAP-derived) (F*H)/I | 3.51 | % | 3.45 | % | 3.68 | % | 3.50 | % | 3.44 | % | |||||||||||||
Net interest margin - FTE (G*H)/I | 3.51 | % | 3.46 | % | 3.69 | % | 3.51 | % | 3.45 | % | |||||||||||||
Calculation of Efficiency Ratio | |||||||||||||||||||||||
(F) | Net interest income (GAAP) | $ | 71,330 | $ | 69,236 | $ | 71,455 | $ | 278,647 | $ | 263,469 | ||||||||||||
(G) | Net interest income - FTE | 71,496 | 69,406 | 71,670 | 279,388 | 264,097 | |||||||||||||||||
(J) | Plus: noninterest income (GAAP) | 20,076 | 24,455 | 23,280 | 90,623 | 91,262 | |||||||||||||||||
(K) | Less: gains/losses on investment securities and partnership investments |
1,173 | (2,779) | (2,216) | (3,875) | (3,714) | |||||||||||||||||
(L) | Less: depreciation - leased equipment | (1,523) | (1,672) | (2,111) | (7,093) | (10,023) | |||||||||||||||||
(M) | Total net revenue (GAAP) (F+J) | 91,406 | 93,691 | 94,735 | 369,270 | 354,731 | |||||||||||||||||
(N) | Total net revenue - adjusted (G+J–K–L) |
91,222 | 89,410 | 90,623 | 359,043 | 341,622 | |||||||||||||||||
(O) | Noninterest expense (GAAP) | 52,972 | 50,166 | 48,377 | 201,724 | 184,699 | |||||||||||||||||
(L) | Less: depreciation - leased equipment | (1,523) | (1,672) | (2,111) | (7,093) | (10,023) | |||||||||||||||||
(P) | Noninterest expense - adjusted (O–L) |
51,449 | 48,494 | 46,266 | 194,631 | 174,676 | |||||||||||||||||
Efficiency ratio (GAAP-derived) (O/M) | 57.95 | % | 53.54 | % | 51.07 | % | 54.63 | % | 52.07 | % | |||||||||||||
Efficiency ratio - adjusted (P/N) | 56.40 | % | 54.24 | % | 51.05 | % | 54.21 | % | 51.13 | % | |||||||||||||
End of Period | |||||||||||||||||||||||
December 31, | September 30, | December 31, | |||||||||||||||||||||
2023 | 2023 | 2022 | |||||||||||||||||||||
Calculation of Tangible Common Equity-to-Tangible Assets Ratio | |||||||||||||||||||||||
(Q) | Total common shareholders’ equity (GAAP) | $ | 989,568 | $ | 924,250 | $ | 864,068 | ||||||||||||||||
(R) | Less: goodwill and intangible assets | (83,916) | (83,921) | (83,907) | |||||||||||||||||||
(S) | Total tangible common shareholders’ equity (Q–R) |
$ | 905,652 | $ | 840,329 | $ | 780,161 | ||||||||||||||||
(T) | Total assets (GAAP) | 8,727,958 | 8,525,058 | 8,339,416 | |||||||||||||||||||
(R) | Less: goodwill and intangible assets | (83,916) | (83,921) | (83,907) | |||||||||||||||||||
(U) | Total tangible assets (T–R) |
$ | 8,644,042 | $ | 8,441,137 | $ | 8,255,509 | ||||||||||||||||
Common equity-to-assets ratio (GAAP-derived) (Q/T) | 11.34 | % | 10.84 | % | 10.36 | % | |||||||||||||||||
Tangible common equity-to-tangible assets ratio (S/U) | 10.48 | % | 9.96 | % | 9.45 | % | |||||||||||||||||
Calculation of Tangible Book Value per Common Share | |||||||||||||||||||||||
(Q) | Total common shareholders’ equity (GAAP) | $ | 989,568 | $ | 924,250 | $ | 864,068 | ||||||||||||||||
(V) | Actual common shares outstanding | 24,434,604 | 24,429,083 | 24,662,286 | |||||||||||||||||||
Book value per common share (GAAP-derived) (Q/V)*1000 | $ | 40.50 | $ | 37.83 | $ | 35.04 | |||||||||||||||||
Tangible common book value per share (S/V)*1000 | $ | 37.06 | $ | 34.40 | $ | 31.63 |