1st Source Posts 16th Consecutive Year of Record 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)--Jan. 14, 2002 1st Source Corporation (Nasdaq:SRCE SRCE Source ), parent company of 1st Source Bank, today reported their 16th consecutive year of record earnings with net income of $38.50 million for the year 2001. This is a 2.5 percent increase over the $37.57 million reported for the year 2000. 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 2001 amounted to $1.82, up 1.7 percent from the $1.79 diluted net income per common share for 2000. Net income was $9.23 million for the fourth quarter of 2001, down 14.2 percent from the $10.76 million in net income reported for the fourth quarter of 2000. Diluted net income per common share for the fourth quarter of 2001 amounted to $0.44, a 15.4 percent decrease from the $0.52 per common share reported in the fourth quarter of 2000. The Board of Directors approved a fourth quarter cash dividend of $0.09 per share. The cash dividend is payable on February February: see month. 15, 2002 to shareholders of record on February 5, 2002, and is a 5.0 percent increase over the fourth quarter cash dividend in 2000. Christopher J. Murphy III, Chairman of 1st Source Corporation, commented, "As the economy continued to weaken in the fourth quarter, 1st Source aggressively charged off difficult loans and charged down those with devaluing collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although in keeping with our very conservative approach to loan categorization and reserving policies. Although the bulk of our loans are secured, we'd we'd 1. Contraction of we had. 2. Contraction of we should. 3. Contraction of we would. we'd have ~would much rather be aggressive and careful now, than have unpleasant surprises later." Murphy continued, "The quarter also had strength. Our mortgage loan production continued at its record pace, spurred by further rate cuts by the Federal Reserve, and our operating margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improved. We also completed the acquisition and smooth conversion of thirteen bank branches in the Fort Wayne, Indiana “Fort Wayne” redirects here. For other uses, see Fort Wayne (disambiguation). Fort Wayne is a city in northeastern Indiana, USA and the county seat of Allen County. Fort Wayne is Indiana's second largest city after Indianapolis. area from Standard Federal Bank to 1st Source. We acquired approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $222 million in deposits, along with branch facilities located in Fort Wayne Fort Wayne, city (1990 pop. 173,072), seat of Allen co., NE Ind., where the St. Joseph and St. Marys rivers join to form the Maumee River; inc. 1840. It is the second largest city in the state, a major railroad and shipping point, a wholesale and distribution hub, , New Haven New Haven, city (1990 pop. 130,474), New Haven co., S Conn., a port of entry where the Quinnipiac and other small rivers enter Long Island Sound; inc. 1784. Firearms and ammunition, clocks and watches, tools, rubber and paper products, and textiles are among the many , Bluffton Bluffton may refer to:
1 City (1990 pop. 33,830), Lee co., E Ala.; inc. 1839. The city's economy centers around Auburn Univ.; there is some manufacturing. 2 City (1990 pop. 24,309), seat of Androscoggin co. , Columbia City Columbia City is the name of several places in the 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). based bank, we believe our focus on personal service, local decision making, and providing financial guidance for our customers will help us build and grow in this new market." The 2001 earnings represent a return on average 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 13.14 percent, compared to 14.88 percent for 2000. Return on average total assets for 2001 was 1.14 percent, compared to 1.24 percent for 2000. A loss of $692,000 was reported in the 4th quarter 2001 on venture capital investments compared to an investment security gain of $1.83 million in the 4th quarter of 2000. As of December December: see month. 31, 2001, the 1st Source equity-to-assets ratio was 8.6 percent, compared to 8.5 percent a year ago. Shareholders' equity was $306.2 million, up 13.2 percent from $270.6 million a year ago. Total assets at the end of 2001 were $ 3.56 billion, up 12.0 percent from last year. Total deposits were $2.88 billion, up 17.1 percent over the end of 2000, and total loans were $2.54 billion, up 9.8 percent over 2000. 1st Source increased its provision for loan losses to $28.62 million in 2001, up from $14.88 million in 2000. The continued softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. of the economy has led to a rise in loan losses and non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. . 1st Source's reserve for loan losses as of December 31, 2001, was 2.27 percent of total loans, compared to 1.93 percent at December 31, 2000. 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 loans was 1.69 percent on December 31, 2001, compared to 1.06 percent at December 31, 2000. 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 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. 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 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 RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. agencies, heavy duty trucks, construction and environmental equipment. The corporation includes 64 banking locations in 17 counties, 8 Trustcorp Mortgage offices in Indiana, Ohio, Michigan and North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. ; and 28 locations nationwide for the 1st Source Bank 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. Finance Group. 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 Dain Rauscher, Inc., First Tennessee This article or section has multiple issues: * Its neutrality is disputed. * It reads like an advertisement and needs to be rewritten in a neutral point of view. * It may require general cleanup to meet Wikipedia's quality standards. Securities Corporation; 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.; Knight Securities, L.P.; NatCity Investments; Schwab Schwab is a German name meaning "man from Swabia" and may refer to:
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 first quarter, 2002 on the floating rate securities is 3.99 percent. Marketmakers in those securities are Knight Securities, L.P.; Spear, Leeds & Kellogg; and Stifel, Nicolaus & Company, Incorporated. Except for historical information contained herein, the matters discussed in this document, and other information contained in 1st Source's SEC filings, may 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. ." Those "forward-looking statements" may involve risk and uncertainties, including statements concerning future events, performance and assumptions and other statements that are other than statements of historical facts. 1st Source wishes to caution readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. Readers are advised that various factors -- including, but not limited to, changes in laws, regulations or generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting ; 1st Source's competitive position within the markets served; increasing consolidation within the banking industry; unforeseen changes in interest rates; any unforeseen downturns in the local, regional or national economies -- 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. (charts attached)
4th QUARTER 2001 FINANCIAL HIGHLIGHTS
(Unaudited - Dollars in thousands except Per Share Data)
3 Months Ended 12 Months Ended
December 31 December 31
2001 2000 2001 2000
END OF PERIOD BALANCES
Assets $3,562,691 $3,182,181
Loans 2,535,364 2,309,062
Deposits 2,882,806 2,462,724
Reserve for Loan
Losses 57,624 44,644
Intangible Assets 30,052 2,155
Common Shareholders'
Equity 306,190 270,572
AVERAGE BALANCES
Assets $3,547,570 $3,177,857 $3,369,943 $3,040,091
Earning Assets 3,221,523 2,899,843 3,065,891 2,767,721
Investments 624,256 555,732 568,631 537,083
Loans 2,508,856 2,286,805 2,464,798 2,207,382
Deposits 2,844,389 2,478,827 2,636,361 2,352,207
Interest Bearing
Liabilities 2,810,649 2,519,324 2,668,522 2,406,980
Common Shareholders'
Equity 303,130 264,680 292,986 252,574
INCOME STATEMENT DATA
Net Interest Income $ 32,002 $ 26,980 $ 118,786 $ 104,967
Net Interest Income
- FTE 32,835 27,858 122,110 108,612
Provision for Loan
Losses 7,057 4,989 28,623 14,877
Noninterest Income 22,822 22,242 92,836 73,914
Noninterest Expense 33,110 26,859 121,232 104,003
Net Income 9,234 10,756 38,498 37,573
PER SHARE DATA(a)
Basic Net Income Per
Common Share $ 0.44 $ 0.52 $ 1.85 $ 1.81
Diluted Net Income Per
Common Share 0.44 0.52 1.82 1.79
Cash Dividends Per
Common Share 0.090 0.085 0.351 0.334
Book Value Per Common
Share 14.73 13.07 14.73 13.07
Market Value-- High 22.710 20.417 28.070 23.129
Market Value-- Low 19.650 13.929 16.310 13.929
Basic Weighted Avg.
Common Shares
Outstanding 20,780,837 20,702,000 20,767,489 20,769,424
Diluted Weighted Avg.
Common Shares
Outstanding 21,205,756 20,860,308 21,169,543 20,981,931
KEY RATIOS
Return on Average
Assets 1.03% 1.35% 1.14% 1.24%
Return on Average
Common Shareholders'
Equity 12.09 16.17 13.14 14.88
Average Common
Shareholders' Equity
to Average Assets 8.54 8.33 8.69 8.31
End of Period Tangible
Common Equity to
Tangible Assets 7.82 8.44 7.82 8.44
Net Interest Margin 4.04 3.82 3.98 3.92
Efficiency: Expense
to Revenue 54.94 52.17 52.76 54.66
Net Charge Offs to
Average Loans 0.54 0.38 0.54 0.34
Loan Loss Reserve to
Loans 2.27 1.93 2.27 1.93
Nonperforming Assets
to Loans 1.69 1.06 1.69 1.06
ASSET QUALITY
Loans Past Due 90 Days
or More $ 453 $ 385
Non-accrual Loans 35,825 19,168
Other Real Estate
Owned 3,137 1,697
Other Nonperforming
Assets 3,509 3,211
Total Nonperforming
Assets 42,924 24,461
(a) Per share figures have been adjusted for a 5% stock dividend
declared April 24, 2001.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
1st Source Corporation and Subsidiaries
(Unaudited - Dollars in thousands)
December 31, December 31,
2001 2000
---- ----
ASSETS
Cash and due from banks $ 129,431 $ 118,123
Federal funds sold and interest
bearing deposits with other banks 17,038 901
Investment securities:
Securities available-for-sale,
at fair value (amortized cost
of $632,712 and $503,238 at
December 31, 2001 and 2000,
respectively) 640,478 503,910
Securities held-to-maturity, at
amortized cost (fair value of $0
and $60,332 at December 31, 2001
and 2000, respectively) 0 59,212
------------ ------------
Total Investment Securities 640,478 563,122
Loans - net of unearned discount
Commercial and agricultural loans 416,595 460,944
Commercial loans secured by
transportation and construction
equipment 1,198,615 1,055,145
Loans secured by real estate 760,095 645,041
Consumer loans 160,059 147,932
------------ ------------
Total Loans 2,535,364 2,309,062
Reserve for loan losses (57,624) (44,644)
------------ ------------
Net Loans 2,477,740 2,264,418
Equipment owned under operating
leases, net of accumulated
depreciation 115,754 84,892
Premises and equipment 41,923 33,583
Other assets 140,327 117,142
------------ ------------
Total Assets $ 3,562,691 $ 3,182,181
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest bearing $ 365,193 $ 293,564
Interest bearing 2,517,613 2,169,160
------------ ------------
Total Deposits 2,882,806 2,462,724
Federal funds purchased and
securities sold under agreements
to repurchase 214,709 192,307
Other short-term borrowings 49,764 141,083
Other liabilities 52,533 58,685
Long-term debt 11,939 12,060
------------ ------------
Total Liabilities 3,211,751 2,866,859
Guaranteed preferred beneficial
interests in the Company's
subordinated debentures 44,750 44,750
Shareholders' equity:
Common stock-no par value 7,579 7,227
Capital surplus 214,001 195,197
Retained earnings 91,591 80,881
Cost of common stock in treasury (12,591) (14,954)
Accumulated other comprehensive
income 5,610 2,221
------------ ------------
Total Shareholders' Equity 306,190 270,572
------------ ------------
Total Liabilities and
Shareholders' Equity $ 3,562,691 $ 3,182,181
============= ============
CONSOLIDATED STATEMENTS OF INCOME
1st Source Corporation and Subsidiaries
(Unaudited - Dollars in thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31 December 31
2001 2000 2001 2000
-------- -------- --------- ---------
INTEREST INCOME
Loans, including fees $ 50,209 $ 54,159 $ 211,801 $ 203,717
Investment securities
and other 7,463 8,989 30,382 31,675
-------- -------- --------- ---------
Total Interest Income 57,672 63,148 242,183 235,392
INTEREST EXPENSE
Deposits 23,464 30,938 108,069 109,866
Short-term borrowings 1,988 5,005 14,455 19,664
Long-term debt 218 225 873 895
-------- -------- --------- ---------
Total Interest Expense 25,670 36,168 123,397 130,425
-------- -------- --------- ---------
Net Interest Income 32,002 26,980 118,786 104,967
Provision for loan
losses 7,057 4,989 28,623 14,877
-------- -------- --------- ---------
Net Interest Income
After Provision for
Loan Losses 24,945 21,991 90,163 90,090
NONINTEREST INCOME
Trust fees 2,313 2,467 9,672 9,612
Service charges on
deposit accounts 3,469 2,365 11,714 8,073
Loan servicing and sale
income 6,941 6,543 31,940 22,002
Equipment rental income 7,279 6,311 26,249 21,224
Other income 3,465 2,725 12,822 10,675
Investment securities
and other investment
gains (losses) (645) 1,831 439 2,328
-------- -------- --------- ---------
Total Noninterest Income 22,822 22,242 92,836 73,914
-------- -------- --------- ---------
NONINTEREST EXPENSE
Salaries and employee
benefits 16,095 13,194 62,614 54,572
Net occupancy expense 1,652 1,511 6,199 5,651
Furniture and equipment
expense 2,498 2,496 9,428 8,874
Depreciation -- leased
equipment 5,834 4,577 21,034 16,790
Supplies and
communication 2,024 1,289 6,047 5,098
Business development
and marketing expense 1,199 978 4,359 3,692
Other 3,808 2,814 11,551 9,326
-------- -------- --------- ---------
Total Noninterest Expense 33,110 26,859 121,232 104,003
-------- -------- --------- ---------
Income Before Income
Taxes and Subsidiary
Trust Distributions 14,657 17,374 61,767 60,001
Income Taxes 4,915 6,006 21,059 20,030
Distribution on
preferred securities
of subsidiary trusts,
Net of tax 508 612 2,210 2,398
-------- -------- --------- ---------
Net Income $ 9,234 $ 10,756 $ 38,498 $ 37,573
-------- -------- --------- ---------
The NASDAQ Stock Market National Market Symbol: "SRCE"
(CUSIP No. 336901 10 3)
Please contact us at shareholder@1stsource.com.
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