1st Source Corporation Reports First Quarter Earnings.Business Editors 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)--April 18, 2000 1st Source Corporation (Nasdaq:SRCE SRCE Source ), parent company of 1st Source Bank, today reported net income of $8.7 million for the first quarter of 2000, up 1.8 percent from the $8.5 million of the first quarter of 1999. 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 share of common stock Net income per share of common stock See: Earnings per share for the first quarter of 2000 amounted to $0.45, up 2.3 percent from the $0.44 for the first quarter of 1999. For the first quarter of 2000, 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. for 1st Source Corporation was 14.46 percent compared to 15.70 percent for the first quarter of 1999. Return on average total assets was 1.22 percent compared to 1.31 percent a year ago. Approximately $305,000 of venture capital gains, net of tax, were recorded in the first quarter of 2000. The Board of Directors approved a first quarter cash dividend of $0.09 per common share, up 12.5 percent from the $0.08 cash dividend of a year ago. The cash dividend is payable May 15, 2000 to shareholders of record May 5, 2000. As of March 31, 2000, the common equity-to-assets ratio was 8.36 percent compared to 8.38 percent a year ago. Common shareholders' equity was $245.9 million, up 9.8 percent from March 31, 1999. And, at the end of the first quarter of 2000, total assets were $2.94 billion. 1st Source's reserve for loan losses as of March 31, 2000 was 1.86 percent of total loans, compared to 1.95 percent as of December December: see month. 31, 1999. 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 was 1.31 percent on March 31, 2000 compared to 0.74 percent on December 31, 1999. The increase in nonperforming assets from December 31, 1999 is mainly attributable to two large capital equipment loans. 1st Source charged off approximately $2.8 million on these credits in the first quarter. 1st Source is approximately 85 percent secured on the remaining $15 million balance of these two loans. Christopher J. Murphy III, Chairman and Chief Executive Officer, commented, "We were pleased with our loan growth of 9.8 percent and our deposit growth of 6.1 percent over the first quarter of 1999. With the increase in interest rates, there has been a compression in net interest margins and a reduction in mortgage financing volumes. Two of our customers were adversely affected by rising interest rates and poor operating performance. We took a substantial write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. on one of these secured relationships in the first quarter. This is in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with our policy of recognizing problems and working out of them as soon as they become evident." Murphy continued, "We were also pleased with our earnings growth. The implementation of a new "gain on sale" accounting model as was earlier disclosed, had the effect of increasing 1999's first quarter earnings by $0.03 per share, thus masking mask·ing n. 1. The concealment or the screening of one sensory process or sensation by another. 2. An opaque covering used to camouflage the metal parts of a prosthesis. this year's growth somewhat. This application of the new model has no impact on the economic returns of our securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. portfolios. It only increases the volatility of the reported results from period to period." 1st Source Corporation takes pride in its identification as the largest locally owned 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 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 used private aircraft, automobiles for leasing and rental agencies, heavy duty trucks and construction equipment. 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 with 50 banking centers in twelve counties, as well as fifteen locations nationwide supporting its Specialty Finance Group. 1st Source Corporation's wholly owned mortgage banking subsidiary, Trustcorp Mortgage Company, has twelve offices in six states. With a history dating back to 1863, 1st Source 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 ABN-AMRO Securities (USA), Inc.; Howe, Barnes Investments, Inc.; Keefe, Bruyette & Woods, Inc.; NatCity Investments; Raymond James  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . and Associates; Sandler, O'Neill & Partners; Sherwood Securities Corporation; Spear, Leeds & Kellogg; and Stifel, Nicolaus & Company. 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 second quarter, 2000 on the floating rate securities is 8.14 percent. Marketmakers in those securities are Ryan Beck & Company and Stifel, Nicolaus & Company. Except for the historical information contained herein, this press release contains 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. that are provided to assist in the understanding of anticipated future financial performance. However, such performance involves risks and uncertainties which may cause actual results to differ materially from those in such statements. (chart attached)
1ST QUARTER 2000 FINANCIAL HIGHLIGHTS 1st Source Corporation
(Unaudited - Dollars in thousands except Per Share Data)
3 Months Ended March 31
2000 1999
---- ----
END OF PERIOD BALANCES
Assets $2,940,232 $2,672,856
Deposits 2,264,836 2,092,650
Loans 2,146,444 1,915,952
Reserve for Loan Losses 39,910 38,974
Nonperforming Assets 28,171 11,426
Common Shareholders' Equity 245,950 223,975
Book Value Per Common Share 13.01 11.82
Common Shares Outstanding 18,900,312 18,949,507
INCOME STATEMENT DATA
Net Interest Income $ 25,199 $ 23,579
Provision for Loan Losses 3,918 1,293
Other Income 17,114 15,240
Other Expenses 24,286 23,600
Net Income 8,685 8,528
PER SHARE DATA
Basic Net Income Per Common Share $ 0.46 $ 0.45
Diluted Net Income Per Common Share 0.45 0.44
Cash Dividends 0.090 0.073
Market Value--High 25.50 35.75
Market Value--Low 17.75 29.75
AVERAGE BALANCES
Assets $ 2,862,901 $ 2,640,465
Deposits 2,190,370 2,064,754
Loans 2,069,887 1,885,317
Common Shareholders' Equity 241,607 220,312
Earning Assets 2,595,481 2,397,262
KEY RATIOS
Return on Average Assets 1.22% 1.31%
Return on Average Common
Shareholders' Equity 14.46 15.70
Average Common Shareholders'
Equity to Average Assets 8.44 8.34
Net Interest Margin 4.03 4.14
Net Charge Offs to Average Loans 0.65 0.03
Loan Loss Reserve to Loans 1.86 2.03
Nonperforming Assets to Loans 1.31 0.60
--------------------------------------------------------------------- COMMON STOCK LISTING The Nasdaq Stock Market National Market Symbol: "SRCE" CUSIP CUSIP See: Committee on Uniform Securities Identification Procedures CUSIP See Committee on Uniform Securities Identification Procedures. No. 336901 10 3 |
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