1st Source Corporation Announces Year End Results, Dividend Increase.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. . -- 1st Source Corporation (Nasdaq:SRCE SRCE Source ), parent company of 1st Source Bank, today reported net income of $33.75 million for the year 2005, an increase of 35.19 percent over the $24.97 million reported for the year 2004. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net income per common share for 2005 amounted to $1.61, up 35.29 percent compared to $1.19 diluted net income per common share for 2004. Net income was $9.10 million for the fourth quarter of 2005, up 15.76 percent compared to the $7.86 million of net income reported for the fourth quarter of 2004. Diluted net income per common share for the fourth quarter of 2005 amounted to $0.43, compared to $0.37 per common share reported in the fourth quarter of 2004. The Board of Directors approved an increase in the fourth quarter cash dividend to $0.14 per share. The cash dividend is payable on February February: see month. 15, 2006 to shareholders of record on February 6, 2006, and is an increase of 16.67 percent over the $0.12 cash dividend announced one year ago. Christopher J. Murphy III, Chairman of 1st Source Corporation, commented, "We ended 2005 on a good note. We're we're Contraction of we are. we're we are up over 35.0 percent in net income for the year with a substantial portion coming from net recoveries in our loan and lease reserves. Total loan growth was up over 8.0 percent for the year. Additionally, we opened four banking centers in new locations throughout 2005, with two more scheduled to open early in 2006. Our investment managers continue to perform well, our specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. asset financing Asset Financing Using balance sheet assets (such as accounts receivable, short-term investments or inventory) to obtain a loan or borrow money - the borrower provides a security interest in the assets to the lender. businesses have improved and are carefully growing their portfolios, our insurance agency had a banner Same as banner ad. 1. banner - The title page added to printouts by most print spoolers. Typically includes user or account ID information in very large character-graphics capitals. year, and we are investing in a project to upgrade our core computer systems for improved client service, increased competitiveness, and improved effectiveness and efficiency in the long term." Mr. Murphy continued, "All of this was accomplished in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite a very challenging margin as well as very competitive markets for all of our businesses. We will continue our focus in 2006 on excellent client service, maintaining a sharp eye on credit quality, and keeping costs under control." 1st Source's reserve for loan losses as of December December: see month. 31, 2005, was 2.38 percent of total loans and leases, compared to 2.79 percent as of December 31, 2004. Net recoveries were $0.87 million for the fourth quarter 2005, compared to net charge-offs of $3.93 million a year ago. Net recoveries for the year were $0.88 million compared to net charge-offs of $6.60 million in 2004. The ratio of nonperforming assets Nonperforming asset An asset that is not effectively producing income, such as an overdue loan. nonperforming asset An asset that produces no income. to net loans and leases was 0.87 percent on December 31, 2005, compared to 1.42 percent on December 31, 2004. Noninterest income for the fourth quarter of 2005 was $17.57 million, down 2.84 percent from the fourth quarter of 2004. Lower recoveries of mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. rights impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. in the fourth quarter of 2005, as compared to the same quarter of 2004, was the predominate factor behind the decrease. Other income and deposit fee income increased marginally during the fourth quarter of 2005. For the year, noninterest income was $68.53 million, up 9.25 percent from 2004. This year-over-year increase was mainly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to recoveries of mortgage servicing rights impairment, lower charges for other-than-temporary impairment of securities, and gains on partnership investments. These increases were somewhat offset by decreases in equipment rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time . Noninterest expense for the fourth quarter of 2005 was relatively flat at $30.86 million as compared to the $30.43 million reported for fourth quarter of 2004. For the year, noninterest expense was $123.44 million, down 2.87 percent from one year ago. Reductions in collection and repossession The taking back of an item that has been sold on credit and delivered to the purchaser because the payments have not been made on it. For example, if an individual fails to render prompt payments on a new car, the car might be subject to repossession by the finance company, expense, a decline in professional fees, and lower depreciation expense on leased equipment were the significant factors behind the decrease. These decreases were partially offset by increases in salaries and employee benefits. As of December 31, 2005, the 1st Source common equity-to-assets ratio was 9.84 percent, compared to 9.16 percent a year ago. 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. was $345.58 million, up from $326.60 million a year ago. Total assets at the end of the fourth quarter of 2005 remained relatively stable compared to the same period last year at $3.51 billion. Total loans and leases were up 8.04 percent and total deposits were down 2.19 percent from the comparable figures at the end of the fourth quarter of 2004. 1st Source Corporation is the largest locally controlled financial institution headquartered 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. While delivering a comprehensive range of consumer and commercial banking services, 1st Source Bank has distinguished itself with 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. 1st Source Bank also competes for business nationally by offering specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. financing services for new and used private and cargo aircraft A cargo aircraft is an airplane designed and used for the carriage of goods, rather than passengers. This role demands a number of features that makes a cargo aircraft instantly identifiable; a "fat" looking fuselage, a high-wing to allow the cargo area to sit near the ground, a , automobiles No invention has so transformed the landscape of the United States as the automobile, and no other country has so thoroughly adopted the automobile as its favorite means of transportation. for leasing and rental agencies, medium and heavy duty trucks, construction and environmental equipment. The Corporation includes 64 banking centers in 15 counties, 5 Trustcorp Mortgage offices in Indiana Indiana, state, United States Indiana, midwestern state in the N central United States. It is bordered by Lake Michigan and the state of Michigan (N), Ohio (E), Kentucky, across the Ohio R. (S), and Illinois (W). and Ohio, and 23 locations nationwide for the 1st Source Bank Specialty Finance Group. With a history dating back to 1863, 1st Source Bank has a tradition of providing superior service to customers while playing a leadership role in the continued development of the communities in which it serves. 1st Source may be accessed on its home page at "www.1stsource.com." Its 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 Crowell Crowell can refer to: People
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FTN Family Television Network FTN Fido Technology Networks FTN FeedThe.Net (website) FTN Franja Transversal del Norte (Guatemala region) Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians Research Securities; Goldman Gold·man , Emma 1869-1940. Russian-born American anarchist. Jailed repeatedly for her advocacy of birth control and opposition to military conscription, she was deported to the Soviet Union in 1919. , Sachs Sachs , Hans 1494-1576. German writer and Meistersinger noted for his many dramas, poems, and songs. His life inspired Wagner's opera Die Meistersinger von Nürnberg (1868). & Company; Keefe, Bruyette & Woods, Inc.; Lehman Brothers Lehman Brothers Holdings Inc. (NYSE: LEH), founded in 1850, is a diversified, global financial services firm. It is a participant in investment banking, equity and fixed income sales, research and trading, investment management, private equity, and private banking. , Inc.; Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. & Company, Inc.; Prudential Prudential is the name of two different companies and buildings named after them:Companies:
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UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Securities, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ; and William Blair
1st Source's floating rate cumulative trust preferred security is traded on the Nasdaq Stock Market under the symbol "SRCEO". The rate for the first quarter, 2006 is 6.26 percent. Marketmakers in those securities are Howe, Barnes Barnes, former municipal borough, SE England. See Richmond upon Thames. Investments, Inc. and Stifel, Nicolaus & Company. Except for historical information contained herein, the matters discussed in this document express "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ." Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or 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 United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ; 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , which filings are available from the SEC. 1st Source undertakes no obligation to publicly update or revise any forward-looking statements.
1st SOURCE CORPORATION
4th QUARTER 2005 FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in thousands, except for per share data)
Three Months Ended Twelve Months Ended
December 31 December 31
2005 2004 2005 2004
----------- ----------- ----------- -----------
END OF PERIOD
BALANCES
Assets $ 3,511,277 $ 3,563,715
Loans and leases 2,463,431 2,280,168
Deposits 2,745,587 2,807,003
Reserve for loan
and lease losses 58,697 63,672
Intangible assets 21,381 23,588
Common
shareholders'
equity 345,576 326,600
AVERAGE BALANCES
Assets $ 3,389,502 $ 3,507,471 $ 3,373,137 $ 3,349,364
Earning assets 3,161,149 3,283,278 3,152,235 3,121,990
Investments 637,582 784,417 702,606 762,386
Loans and leases 2,407,290 2,277,611 2,348,690 2,240,055
Deposits 2,639,051 2,691,849 2,610,398 2,489,170
Interest bearing
liabilities 2,596,432 2,735,176 2,590,486 2,590,324
Common
shareholders'
equity 342,186 325,288 333,623 319,737
INCOME STATEMENT DATA
Net interest
income $ 25,323 $ 23,369 $ 98,428 $ 98,688
Net interest
income - FTE 25,985 24,014 101,095 101,403
(Recovery
of)/provision for
loan and lease
losses (719) (591) (5,855) 229
Noninterest income 17,574 18,087 68,533 62,733
Noninterest
expense 30,856 30,430 123,439 127,091
Net income 9,099 7,860 33,751 24,965
PER SHARE DATA
Basic net income
per common share $ 0.44 $ 0.38 $ 1.63 $ 1.21
Diluted net income
per common share 0.43 0.37 1.61 1.19
Cash dividends
paid per
common share 0.130 0.110 0.490 0.420
Book value per
common share 16.72 15.76 16.72 15.76
Market value - High 26.100 28.090 26.100 28.090
Market value - Low 20.920 25.150 19.410 20.350
Basic weighted
average common
shares
outstanding 20,669,547 20,727,663 20,685,911 20,709,457
Diluted weighted
average common
shares
outstanding 20,949,028 21,015,302 20,957,103 20,984,822
KEY RATIOS
Return on average
assets 1.07 % 0.89 % 1.00 % 0.75 %
Return on average
common
shareholders'
equity 10.55 9.61 10.12 7.81
Average common
shareholders'
equity to average
assets 10.10 9.27 9.89 9.55
End of period
tangible common
equity to
tangible assets 9.29 8.56 9.29 8.56
Net interest
margin 3.26 2.91 3.21 3.25
Efficiency:
expense to
revenue 68.55 68.66 70.69 72.80
Net charge-offs to
average loans and
leases (0.14) 0.69 (0.04) 0.29
Loan and lease
loss reserve to
loans and leases 2.38 2.79 2.38 2.79
Nonperforming
assets to loans
and leases 0.87 1.42 0.87 1.42
ASSET QUALITY
Loans and leases
past due 90 days
or more $ 245 $ 481
Nonaccrual and
restructured loans
and leases 16,552 25,253
Other real estate 960 1,307
Repossessions 4,284 4,382
Equipment owned
under operating
leases 0 1,785
Total nonperforming
assets 22,041 33,208
1st SOURCE CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited - Dollars in thousands)
December 31, 2005 December 31, 2004
ASSETS ----------------- ------------------
---------------------------------
Cash and due from banks $ 124,817 $ 78,255
Federal funds sold and interest
bearing deposits with other
banks 68,578 220,131
Investment securities available-
for-sale, at fair value
(amortized cost of $637,878 and
$790,404 at December 31, 2005
and 2004, respectively) 632,625 789,923
Mortgages held for sale 67,224 55,711
Loans and leases, net of unearned
discount:
Commercial and agricultural
loans 453,197 425,018
Auto, light truck and
environmental equipment 310,786 263,637
Medium and heavy duty truck 302,137 267,834
Aircraft financing 459,645 444,481
Construction equipment
financing 224,230 196,516
Loans secured by real estate 601,077 583,437
Consumer loans 112,359 99,245
---------------- -----------------
Total loans and leases 2,463,431 2,280,168
Reserve for loan and lease losses (58,697) (63,672)
---------------- -----------------
Net loans and leases 2,404,734 2,216,496
Equipment owned under operating
leases (net of accumulated
depreciation) 58,250 47,257
Premises and equipment 37,710 37,314
Accrued income and other assets 117,339 118,628
---------------- -----------------
Total assets $ 3,511,277 $ 3,563,715
================ =================
LIABILITIES
---------------------------------
Deposits:
Noninterest bearing $ 393,494 $ 378,867
Interest bearing 2,352,093 2,428,136
---------------- -----------------
Total deposits 2,745,587 2,807,003
Federal funds purchased and
securities sold under agreements
to purchase 230,756 216,751
Other short-term borrowings 46,713 82,911
Long-term debt and mandatorily
redeemable securities 23,237 17,964
Subordinated notes 59,022 59,022
Accrued expenses and other
liabilities 60,386 53,464
---------------- -----------------
Total liabilities 3,165,701 3,237,115
SHAREHOLDERS' EQUITY
---------------------------------
Preferred stock; no par value - -
Common stock; no par value 7,578 7,578
Authorized 40,000,000 shares;
issued 21,617,073 at December 31, 2005
and 21,617,057 at December 31, 2004
Capital surplus 214,001 214,001
Retained earnings 139,601 115,830
Cost of common stock in treasury (12,364) (10,512)
Accumulated other comprehensive loss (3,240) (297)
---------------- -----------------
Total shareholders' equity 345,576 326,600
---------------- -----------------
Total liabilities and
shareholders' equity $ 3,511,277 $ 3,563,715
================ =================
1st SOURCE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - Dollars in thousands)
Three Months Ended Twelve Months Ended
December 31 December 31
2005 2004 2005 2004
--------- --------- --------- ---------
Interest income:
Loans and leases $39,931 $32,557 $147,814 $129,059
Investment securities,
taxable 3,543 4,173 14,777 16,361
Investment securities, tax-
exempt 1,333 1,230 5,275 5,065
Other 429 818 666 952
--------- --------- --------- ---------
Total interest income 45,236 38,778 168,532 151,437
Interest expense:
Deposits 16,243 12,445 56,341 41,698
Short-term borrowings 2,334 1,713 8,628 6,079
Subordinated notes 1,029 965 4,008 3,863
Long-term debt and
mandatorily redeemable
securities 307 286 1,127 1,109
--------- --------- --------- ---------
Total interest expense 19,913 15,409 70,104 52,749
--------- --------- --------- ---------
Net interest income 25,323 23,369 98,428 98,688
(Recovery of)/provision for
loan and lease losses (719) (591) (5,855) 229
--------- --------- --------- ---------
Net interest income after
(recovery of)/provision for
loan and lease losses 26,042 23,960 104,283 98,459
Noninterest income:
Trust fees 3,207 3,059 12,877 12,361
Service charges on deposit
accounts 4,905 4,135 17,775 16,228
Mortgage banking income 2,734 5,036 10,868 9,553
Equipment rental income 4,017 3,835 16,067 18,856
Other income 2,711 2,707 10,596 10,454
Investment securities and
other investment (losses)
gains - (685) 350 (4,719)
--------- --------- --------- ---------
Total noninterest income 17,574 18,087 68,533 62,733
--------- --------- --------- ---------
Noninterest expense:
Salaries and employee
benefits 16,470 14,841 69,767 63,083
Net occupancy expense 2,067 1,874 7,749 7,196
Furniture and equipment
expense 2,974 2,593 11,418 10,290
Depreciation - leased
equipment 3,171 3,363 12,895 15,315
Supplies and communication 1,381 1,429 5,462 5,708
Loan and lease collection
and repossession expense (146) 1,757 (1,094) 4,946
Other expense 4,939 4,573 17,242 20,553
--------- --------- --------- ---------
Total noninterest expense 30,856 30,430 123,439 127,091
--------- --------- --------- ---------
Income before income taxes 12,760 11,617 49,377 34,101
Income tax expense 3,661 3,757 15,626 9,136
------------------- -------------------
Net income $9,099 $7,860 $33,751 $24,965
========= ========= ========= =========
The NASDAQ Stock Market National Market Symbol: "SRCE"
(CUSIP #336901 10 3)
Please contact us at shareholder@1stsource.com
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