1st Source Increases Income, Dividend Announced.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 $24.65 million for the first nine months of 2005, up 44.12 percent over the $17.11 million reported for the same period in 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 the first three quarters of 2005 was $1.18, up 43.90 percent over the $0.82 in the same period of 2004. Net income for the third quarter of 2005 was $9.48 million, an increase of $6.17 million over the $3.31 million in the third quarter of 2004. Diluted net income per share for the third quarter of 2005 amounted to $0.45, up $0.29 over the $0.16 for the same period last year. The results for both the three and nine month periods ended September September: see month. 30, 2005, reflect positive comparisons due to the negatives from the same time periods in 2004. Results from a year ago were negatively impacted by the larger provision for loan and lease losses and by 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. charges on 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 and preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. of the Federal Home Loan Mortgage Corporation Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, privately owned, government-sponsored organization that uses private capital to buy home mortgages as a means to help lower housing costs. (FHLMC See Federal Home Loan Mortgage Corporation. ) and the Federal National Mortgage Association (FNMA FNMA abbr. Federal National Mortgage Association Noun 1. FNMA - a federally chartered corporation that purchases mortgages Fannie Mae, Federal National Mortgage Association ). Christopher J. Murphy III, Chairman and Chief Executive Officer, reported that at its October October: see month. meeting, the Board of Directors approved an increase in the cash dividend to $0.13 per share, up 18.18 percent over the $0.11 announced a year ago. The regular cash dividend will be payable on November November: see month. 15, 2005, to shareholders of record on November 7, 2005. Mr. Murphy commented, "The third quarter was clearly better than a year ago. We benefited from recoveries in our loan portfolio and in our provision for loan and lease losses; and a recapturing of value in our mortgage servicing rights due to the rise in interest rates. Net interest margins are relatively flat but we are pleased with the continuing improvement in our credit quality." Mr. Murphy continued, "The quarter was a time of introspection introspection /in·tro·spec·tion/ (in?trah-spek´shun) contemplation or observation of one's own thoughts and feelings; self-analysis.introspec´tive in·tro·spec·tion n. for the organization as we focused on our 2010 growth goals as well as the strategies and plans necessary to achieve them. In this highly competitive world, giving ourselves the time to thoroughly study our markets and the possibilities available to grow and prosper allows us to develop plans that help us achieve long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. success." Noninterest income for the three month periods ended September 30, 2005 and 2004, was $17.87 million and $10.41 million, respectively, and $50.96 million and $44.65 million for the nine month periods ended September 30, 2005 and 2004, respectively. The predominant pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. factors behind the increase in 2005 were an increase in mortgage banking income, mainly due to changes in mortgage servicing rights valuations which resulted in year-over-year mortgage servicing rights recoveries, and decreased investment securities losses related to other-than-temporary impairment for investments in FNMA and FHLMC preferred stock, offset by decreased 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 , due to the decrease in the operating lease Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. portfolio. For the three months ended September 30, 2005, mortgage servicing rights recovery was $1.56 million versus $2.51 million of mortgage servicing rights impairment for the same period in 2004, a swing of $4.07 million. For the nine months ended September 30, 2005, mortgage servicing rights impairment recovery was $2.17 million versus $1.95 million of impairment for the same period in 2004. During the third quarter of 2005 and 2004, 1st Source recognized a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta other-than-temporary impairment for investments in FNMA and FHLMC preferred stock that totaled $0.61 million and $3.67 million, respectively. Based on a number of factors, including the magnitude of the drop in market value below 1st Source's cost and the length of time the market value had been below cost, 1st Source concluded that the decline in value was other than temporary and reflected the loss in noninterest income. Noninterest expense for the three month periods ended September 30, 2005 and 2004, was $30.28 million and $32.37 million, respectively, and $92.58 million and $96.66 million for the nine month periods ended September 30, 2005 and 2004, respectively. The decrease in noninterest expense in 2005 was primarily due to decreased loan and lease 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, depreciation on leased equipment, and professional fees, partially offset by increased salaries and employee benefits. 1st Source's reserve for loan and lease losses as of September 30, 2005, was 2.46 percent of total loans and leases compared to 3.00 percent at September 30, 2004. 1st Source's recovery of provision for loan and lease losses was $1.30 million this quarter compared to a charge of $0.24 million to the provision for loan and lease losses for the third quarter of 2004. Net recoveries were $0.30 million for the third quarter 2005 compared to net charge-offs of $2.09 million for the same quarter last year. 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 0.89 percent on September 30, 2005, compared to 1.55 percent on September 30, 2004. As of September 30, 2005, the 1st Source common equity-to-assets ratio was 10.08 percent compared to 9.53 percent a year ago. 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. was $339.57 million, up 5.11 percent from the $323.06 million reported a year ago. Total assets at the end of the third quarter of 2005 remained relatively stable at $3.37 billion compared to the same period last year. Total loans and leases were up 4.60 percent and total deposits were up 5.73 percent over the comparable figures at the end of the third quarter of 2004. 1st Source 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 for leasing and rental agencies, medium and heavy duty trucks, construction, and environmental equipment. The Corporation includes 63 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 clients 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 Citigroup Citigroup U.S. holding company formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. The $70 billion merger included one of the largest U.S. investment banks, Salomon Smith Barney Inc. Global Markets, Inc.; Crowell Crowell can refer to: People
Places: In England:
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.; NatCity Investments, 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:
In science:
1st Source's floating rate cumulative trust preferred securities is traded on the Nasdaq stock market under the symbol "SRCEO." The rate for the fourth quarter 2005 on the floating rate securities is 5.71 percent. Marketmakers in those securities are Stifel, Nicolaus & Company, and Howe Barnes Barnes, former municipal borough, SE England. See Richmond upon Thames. Investments, Inc. 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.
(charts attached)
1st SOURCE CORPORATION
3rd QUARTER 2005 FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in thousands, except for per share data)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
----------- ----------- ----------- -----------
END OF PERIOD
BALANCES
Assets $ $ 3,370,426 $ 3,390,538
Loans and leases 2,379,904 2,275,231
Deposits 2,594,801 2,454,221
Reserve for loan
and lease
losses 58,547 68,189
Intangible
assets 22,087 24,246
Common
shareholders'
equity 339,572 323,058
AVERAGE BALANCES
Assets $ 3,403,606 $ 3,333,607 $ 3,367,622 $ 3,280,847
Earning assets 3,180,088 3,110,200 3,149,231 3,052,403
Investments 673,990 785,920 724,519 754,988
Loans and leases 2,382,251 2,245,291 2,328,942 2,212,015
Deposits 2,609,322 2,417,473 2,600,742 2,421,117
Interest bearing
liabilities 2,603,261 2,574,304 2,588,482 2,526,257
Common
shareholders'
equity 336,234 318,236 330,737 317,872
INCOME STATEMENT
DATA
Net interest
income $ 25,299 $ 24,223 $ 73,105 $ 75,319
Net interest
income - FTE 25,975 24,899 75,110 77,389
(Recovery
of)/provision
for loan and
lease losses (1,304) 237 (5,136) 820
Noninterest
income 17,866 10,406 50,959 44,646
Noninterest
expense 30,283 32,374 92,583 96,661
Net income 9,481 3,308 24,652 17,105
PER SHARE DATA
Basic net income
per common
share $ 0.46 $ 0.16 $ 1.19 $ 0.83
Diluted net
income per
common share 0.45 0.16 1.18 0.82
Cash dividends
declared per
common share 0.130 0.110 0.370 0.310
Book value per
common share 16.43 15.59 16.43 15.59
Market value -
High 25.890 26.040 25.890 26.040
Market value -
Low 22.060 22.300 19.410 20.350
Basic weighted
average common
shares
outstanding 20,670,080 20,682,707 20,691,425 20,703,344
Diluted weighted
average common
shares
outstanding 20,945,912 20,953,401 20,959,301 20,968,643
KEY RATIOS
Return on
average assets 1.11% 0.39% 0.98% 0.70%
Return on
average common
shareholders'
equity 11.19 4.14 9.97 7.19
Average common
shareholders'
equity to
average assets 9.88 9.55 9.82 9.69
End of period
tangible common
equity to
tangible assets 9.48 8.88 9.48 8.88
Net interest
margin 3.24 3.18 3.19 3.39
Efficiency:
expense to
revenue 65.73 81.21 71.43 74.23
Net charge-offs
to average
loans and
leases (0.05) 0.37 0.00 0.16
Loan and lease
loss reserve to
loans and
leases 2.46 3.00 2.46 3.00
Nonperforming
assets to loans
and leases 0.89 1.55 0.89 1.55
ASSET QUALITY
Loans and leases
past due 90
days or more $ 373 $ 361
Nonaccrual and
restructured
loans and
leases 19,909 30,958
Other real
estate 940 2,117
Repossessions 368 2,516
Equipment owned
under operating
leases 57 20
Total
nonperforming
assets 21,647 35,972
1st SOURCE CORPORATION
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited - Dollars in thousands)
September 30, 2005 September 30, 2004
------------------ ------------------
ASSETS
------
Cash and due from banks $ 78,538 $ 69,842
Federal funds sold and interest
bearing deposits with other
banks 1,370 52,934
Investment securities available-
for-sale, at fair value
(amortized cost of $644,252
and $774,626 at
September 30, 2005 and 2004,
respectively) 639,628 777,553
Trading account securities - 4,926
Mortgages held for sale 126,457 74,253
Loans and leases, net of
unearned discount:
Commercial and agricultural
loans 426,316 446,185
Auto, light truck and
environmental equipment 316,882 267,818
Medium and heavy duty truck 297,896 249,090
Aircraft financing 431,883 450,785
Construction equipment
financing 206,220 204,576
Loans secured by real estate 589,217 559,460
Consumer loans 111,490 97,317
------------------ ------------------
Total loans and leases 2,379,904 2,275,231
Reserve for loan and lease
losses (58,547) (68,189)
------------------ ------------------
Net loans and leases 2,321,357 2,207,042
Equipment owned under operating
leases (net of accumulated
depreciation) 51,544 47,454
Premises and equipment 37,426 37,577
Accrued income and other assets 114,106 118,957
------------------ ------------------
Total assets $ 3,370,426 $ 3,390,538
================== ==================
LIABILITIES
-----------
Deposits:
Noninterest bearing $ 392,312 $ 380,536
Interest bearing 2,202,489 2,073,685
------------------ ------------------
Total deposits 2,594,801 2,454,221
Federal funds purchased and
securities sold under
agreements to purchase 187,507 368,370
Other short-term borrowings 113,717 109,642
Long-term debt and mandatorily
redeemable securities 18,191 22,973
Subordinated notes 59,022 59,022
Accrued expenses and other
liabilities 57,616 53,252
------------------ ------------------
Total liabilities 3,030,854 3,067,480
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
September 30, 2005 and
21,617,057 at September 30, 2004
Capital surplus 214,001 214,001
Retained earnings 133,188 110,244
Cost of common stock in treasury (12,343) (10,571)
Accumulated other comprehensive
(loss) gain (2,852) 1,806
------------------ ------------------
Total shareholders' equity 339,572 323,058
------------------ ------------------
Total liabilities and
shareholders' equity $ 3,370,426 $ 3,390,538
================== ==================
1st SOURCE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited - Dollars in thousands)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
--------- --------- --------- ---------
Interest income:
Loans and leases $ 38,781 $ 32,144 $107,883 $ 96,502
Investment securities,
taxable 3,501 3,793 11,234 12,188
Investment securities, tax-
exempt 1,342 1,260 3,942 3,835
Other 33 23 237 134
--------- --------- --------- ---------
Total interest income 43,657 37,220 123,296 112,659
Interest expense:
Deposits 14,452 9,833 40,098 29,253
Short-term borrowings 2,586 1,826 6,294 4,366
Subordinated notes 1,015 975 2,979 2,898
Long-term debt and
mandatorily redeemable
securities 305 363 820 823
--------- --------- --------- ---------
Total interest expense 18,358 12,997 50,191 37,340
--------- --------- --------- ---------
Net interest income 25,299 24,223 73,105 75,319
(Recovery of)/provision for
loan and lease losses (1,304) 237 (5,136) 820
--------- --------- --------- ---------
Net interest income after
(recovery of)/provision for
loan and lease losses 26,603 23,986 78,241 74,499
Noninterest income:
Trust fees 3,139 3,072 9,670 9,302
Service charges on deposit
accounts 4,656 4,272 12,870 12,093
Mortgage banking income 3,816 (828) 8,134 4,517
Equipment rental income 4,108 4,270 12,050 15,021
Other income 2,706 3,364 7,885 7,747
Investment securities and
other investment (losses)
gains (559) (3,744) 350 (4,034)
--------- --------- --------- ---------
Total noninterest income 17,866 10,406 50,959 44,646
--------- --------- --------- ---------
Noninterest expense:
Salaries and employee
benefits 17,663 16,622 53,297 48,242
Net occupancy expense 1,848 1,764 5,682 5,322
Furniture and equipment
expense 2,958 2,416 8,444 7,697
Depreciation - leased
equipment 3,207 3,533 9,724 11,952
Supplies and communication 1,417 1,396 4,081 4,279
Loan and lease collection
and repossession expense (1,132) 1,313 (948) 3,189
Other expense 4,322 5,330 12,303 15,980
--------- --------- --------- ---------
Total noninterest expense 30,283 32,374 92,583 96,661
--------- --------- --------- ---------
Income before income taxes 14,186 2,018 36,617 22,484
Income tax expense (benefit) 4,705 (1,290) 11,965 5,379
--------- --------- --------- ---------
Net income $ 9,481 $ 3,308 $ 24,652 $ 17,105
========= ========= ========= =========
The NASDAQ Stock Market National Market Symbol: "SRCE"
(CUSIP #336901 10 3)
Please contact us at shareholder@1stsource.com
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion