1st Source Announces Third Quarter Earnings up 10.2 Percent.SOUTH BEND South Bend, city (1990 pop. 105,511), seat of St. Joseph co., N Ind., on the great south bend of the St. Joseph River, in a farming and mint-growing region; inc. as a city 1865. , Ind IND Investigational new drug Therapeutics A status assigned by the FDA to a drug before allowing its use in humans, exempting it from premarketing approval requirements so that experimental clinical trials may be conducted. See Phase 1.2, 3 studies, Sponsorship. .--(BUSINESS WIRE)--Oct. 21, 1997--1st Source Corp. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :SRCE SRCE Source ) today reported net income of $6.6 million for the third quarter of 1997, 10.2 percent higher than the $6.0 million reported for the third quarter of 1996. Net income during the first three quarters of 1997 for 1st Source Corp., parent company of 1st Source Bank, was $19.1 million, up 11.5 percent from the $17.2 million for the comparable period in 1996. Net income per common share for the third quarter of 1997 amounted to 41 cents, up 10.8 percent from the 37 cents for the third quarter of 1996. Net income per share for the first three quarters of 1997 was $1.19, up 11.2 percent from the $1.07 for the same period a year ago. The per share computations take into account the five-for-four split declared in January January: see month. 1997. This year's third quarter earnings represent a return on average common shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. of 14.23 percent, compared to 14.72 percent for the third quarter of 1996. Return on average total assets for the third quarter of 1997 was 1.17 percent, compared to 1.24 percent for the third quarter of 1996. Ernestine M. Raclin, chairman of the 1st Source Corp. board, announced that the board of directors approved a cash dividend for the third quarter of 8 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , payable on Nov. 14, 1997, to shareholders of record on Nov. 5, 1997. This dividend is an increase of 11.1 percent over the third quarter dividend in 1996. Christopher J. Murphy III, president and chief executive officer, said, "Our growth continues with the third quarter opening of banking centers in St. Joseph, Michigan St. Joseph is a city in the U.S. state of Michigan. As of the 2000 census, the city population was 8,789. It lies on the shore of Lake Michigan, at the mouth of the St. Joseph River, about 60 miles due east of Chicago. It is the county seat of Berrien County6. St. and Middlebury, Indiana Middlebury is a town in Elkhart County, Indiana, in the United States. As of the 2000 census, the town population was 2,956. In the early 1830s, settlers came from Middlebury, Vermont, to locate in Indiana. . We have broken ground for a new location in Michigan City, Indiana Michigan City is a city in LaPorte County, Indiana, USA. Michigan City is part of the Chicago metropolitan area as defined by the federal government. It is also part of an area known to locals as Michiana. to be completed by Christmas Christmas [Christ's Mass], in the Christian calendar, feast of the nativity of Jesus, celebrated in Roman Catholic and Protestant Churches on Dec. 25. In liturgical importance it ranks after Easter, Pentecost, and Epiphany (Jan. 6). , and have several other locations that should be open by year end. We will continue to expand in our natural markets." Murphy also noted, "With the continued strong growth of our loan portfolio, we have held our actual loan loss reserves at higher levels, although the reserve to loan ratio has slightly declined. Additional provisions and net recoveries for most of the year have permitted us to maintain a very strong reserve." 1st Source's reserve for loan losses as of Sept. 30, 1997, was 1.96 percent of total loans, compared to 2.10 percent as of Sept. 30, 1996. The ratio of non-performing assets to loans was 0.56 percent on Sept. 30, 1997, compared to 0.59 percent on Sept. 30, 1996. This gives 1st Source a solid coverage ratio of reserve for loan losses to non-performing assets of 3 1/2 times. As of Sept. 30, 1997, the 1st Source equity-to-assets ratio was 8.11 percent, compared to 8.40 percent a year ago. Shareholders' equity was $188.4 million, up 13.4 percent from the $166.1 million a year ago. Total assets at the end of the third quarter of 1997 were $2.32 billion, up 17.5 percent from the same time last year. Total loans were up 22.2 percent and total deposits increased 10.9 percent over the comparable figures at the end of the third quarter of 1996. 1st Source Bank has distinguished itself with innovative products and highly personalized per·son·al·ize tr.v. per·son·al·ized, per·son·al·iz·ing, per·son·al·iz·es 1. To take (a general remark or characterization) in a personal manner. 2. To attribute human or personal qualities to; personify. services and takes pride in its identification as a locally owned community bank. With a total of 44 banking centers in the northern Indiana/southwestern Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). area, 1st Source is continuing its expansion in its home market and across the country in its national niche business: transportation and equipment financing. 1st Source common stock is traded on the NASDAQ Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. under "SRCE" and appears in the National Market System tables in many daily newspapers under the code name "1st Src." Marketmakers in 1st Source common shares are Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. Capital Inc.; The Chicago Corp.; City Securities Corp.; Herzog Herzog insatiable husband plays the field. [Am. Lit.: Herzog] See : Adultery , Heine Hei·ne , Heinrich 1797-1856. German writer who lived in Paris after 1831. His romantic poems and social essays are marked by his love for the German land and people and derision for many modern German institutions. , Geduld Inc.; Howe, Barnes Investments Inc.; Keefe, Bruyette & Woods Inc.; NatCity Investments; Roney & Co.; and Stifel, Nicolaus Nicolaus is a first name derived from St. Nicholas. In science:
1st Source's fixed and floating rate cumulative trust preferred securities are traded on the NASDAQ stock market under the symbols "SRCEP" and "SRCEO," respectively. The rate on the fixed rate securities is 9.0 percent and the rate for the fourth quarter 1997 on the floating rate securities is 7.24 percent. Marketmakers in the securities are Stifel, Nicolaus & Co. and Howe, Barnes Investments Inc. -0-
1st Source Corp.
Third Quarter 1997 Financial Highlights
(Unaudited -- Dollars in thousands, except Per Share Data)
Three Months Ended Nine Months Ended
Sept. 30 Sept. 30
1997 1996 1997 1996
_________ __________ __________ __________
END OF PERIOD BALANCES
______________________
Assets $ 2,323,110 $ 1,976,884
Deposits 1,717,559 1,548,244
Loans 1,719,611 1,407,391
Reserve for Loan Losses 33,649 29,540
Nonperforming Assets 9,632 8,265
Common Shareholders' Equity 188,436 166,057
Book Value Per Common Share(a) 12.06 10.64
Common Shares Outstanding(a) 15,630,980 15,602,125
INCOME STATEMENT DATA
_____________________
Net Interest Income $ 22,092 $ 19,260 $ 63,438 $ 55,884
Provision for Loan
Losses 2,130 1,431 3,838 3,833
Other Income 8,990 7,266 23,185 18,621
Other Expenses 17,919 15,814 52,168 44,333
Net Income 6,638 6,023 19,145 17,170
PER SHARE DATA(a)
______________
Net Income Per Common
Share $ .41 $ .37 $ 1.19 $ 1.07
Cash Dividends .075 .064 .222 .192
Market Value-High 28.375 18.50 28.375 18.50
Market Value-Low 25.75 16.50 19.25 16.50
AVERAGE BALANCES
________________
Assets $2,259,333 $1,931,307 $ 2,146,450 $ 1,866,613
Deposits 1,739,290 1,555,026 1,660,884 1,502,853
Loans 1,661,407 1,387,767 1,570,527 1,336,250
Common Shareholders'
Equity 185,057 162,729 179,672 158,767
Earning Assets 2,101,680 1,797,080 2,002,143 1,741,857
KEY RATIOS
__________
Return on Average
Assets 1.17% 1.24% 1.19% 1.23%
Return on Average
Common Shareholders'
Equity 14.23 14.72 14.25 14.45
Average Common Shareholders'
Equity to Average Assets 8.19 8.43 8.37 8.51
Net Interest Margin 4.35 4.47 4.42 4.50
Net Charge Offs to
Average Loans .09 .12 (.03) .18
Loan Loss Reserve to Loans 1.96 2.10 1.96 2.10
Nonperforming Assets to Loans .56 .59 .56 .59
Common Stock Listing
The Nasdaq Stock Market National
Market Symbol: "SRCE"
CUSIP No. 336901 10 3
(a) Per share figures have been adjusted for a five-for-four stock split
declared Jan. 21, 1997.
CONTACT: 1st Source Corp., South Bend Larry Lentych, 219/235-2702 or Tom Flournoy, 219/235-2707 |
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