1st Source Corp. Announces Third Quarter Earnings up 16.0 Percent
19 October 1999
1st Source Corp. Announces Third Quarter Earnings up 16.0 Percent
SOUTH BEND, Ind.--Oct. 19, 1999--1st Source Corp. today reported net income of $9.1 million for the third quarter of 1999, which is 16.0 percent higher than the $7.9 million reported for the third quarter of 1998.Net income during the first three quarters of 1999 for 1st Source Corp., parent company of 1st Source Bank, was $25.3 million, up 13.2 percent from the $22.4 million for the comparable period in 1998.
Diluted net income per common share for the third quarter of 1999 amounted to 47 cents, up 14.6 percent from the 41 cents for the third quarter of 1998. Diluted net income per share for the first three quarters of 1999 was $1.31, up 13.9 percent from the $1.15 for the same period a year ago. The per share computations take into account the 10 percent stock dividend declared in January 1999.
This year's third quarter earnings represent a return on average common shareholders' equity of 15.87 percent, compared to 15.10 percent for the third quarter of 1998. Return on average total assets for the third quarter of 1999 was 1.32 percent, compared to 1.23 percent for the third quarter of 1998.
Christopher J. Murphy III, chairman and chief executive officer of 1st Source Corp., announced that the board of directors approved a cash dividend for the third quarter of 8 cents per share, payable on Nov. 15, 1999 to shareholders of record on Nov. 5, 1999. This dividend is an increase of 10.0 percent over the third quarter dividend in 1998.
Christopher Murphy, commenting on the performance, "It was a strong third quarter for 1st Source Corp., in spite of increasing margin pressure from the rise of interest rates."
Murphy proceeded, "We continue to be pleased with our `one customer at a time' philosophy of growth. The commitment of 1st Source employees to delivering highly personalized services to our customers, combined with our commitment to being deeply involved in the communities we serve, has led to strong growth in deposits and loans in our newer markets. We are very pleased that our customers continue to value personal service as one of the most important ingredients in a successful banking relationship."
1st Source's reserve for loan losses as of Sept. 30, 1999 was 2.29 percent of total loans, compared to 2.26 percent as of Sept. 30, 1998. The ratio of non-performing assets to loans was 0.61 percent on Sept. 30, 1999 compared to 0.70 percent on Sept. 30, 1998. This gives 1st Source a solid coverage ratio of reserve for loan losses to non-performing assets of nearly four times.
As of Sept. 30, 1999, the 1st Source equity-to-assets ratio was 8.42 percent, compared to 8.32 percent a year ago. Shareholders' equity was $231.0 million, up 9.8 percent from the $210.5 million a year ago. Total assets at the end of the third quarter of 1999 were $2.74 billion, up 8.5 percent from the same time last year. Total loans were up 9.8 percent and total deposits increased 5.9 percent over the comparable figures at the end of the third quarter of 1998.
1st Source Corp. takes pride in its identification as the largest locally owned financial institution headquartered in the Northern Indiana-Southwestern Michigan area. While delivering a comprehensive range of consumer and commercial banking services, 1st Source Bank has distinguished itself with innovative products and highly personalized services. 1st Source also competes for business nationally by offering specialized financing services for used private aircraft, automobiles for leasing and rental agencies, heavy duty trucks, and construction equipment. The corporation includes 50 banking locations in 12 counties; seven Trustcorp Mortgage offices in Indiana, Ohio and Kentucky; and 14 locations nationwide for the 1st Source Bank Specialty 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 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); City Securities Corp.; Herzog, Heine, Geduld Inc.; Howe, Barnes Investments Inc.; Keefe, Bruyette & Woods Inc.; Mayer & Schwetzer Inc.; NatCity Investments; Raymond James and Associates; Sandler, O'Neill & Partners; Sherwood Securities Corp.; Spear, Leeds & Kellogg; and Stifel, Nicolaus & Company, Inc.
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, 1999 on the floating rate securities is 7.10 percent. Marketmakers in those securities are Ryan Beck & Co. and Stifel, Nicolaus & Co.
Except for the historical information contained herein, this press release contains forward-looking statements 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.
1st Source Corp.
3RD QUARTER 1999 FINANCIAL HIGHLIGHTS
(Unaudited -- Dollars in thousands except Per Share Data)
3 Months Ended 9 Months Ended
Sept. 30 Sept. 30
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1999 1998 1999 1998
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End of Period Balances
Assets $ 2,743,196 $2,527,984
Deposits 2,112,270 1,994,612
Loans 1,956,696 1,781,895
Reserve for Loan Losses 44,903 40,289
Nonperforming Assets 11,843 12,532
Common Shareholders'
Equity 230,984 210,452
Book Value Per Common
Share(a) 12.22 11.12
Common Shares
Outstanding(a) 18,895,137 18,931,110
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Income Statement Data
Net Interest Income $ 25,626 $ 23,512 $ 73,988 $ 70,367
Provision for Loan
Losses 2,232 2,042 4,968 7,132
Other Income 17,277 13,923 46,316 36,361
Other Expenses 25,793 22,260 74,094 62,601
Net Income 9,117 7,861 25,324 22,363
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Per Share Data(a)
Basic Net Income Per
Common Share $ .49 $ .42 $ 1.34 $ 1.18
Diluted Net Income
Per Common Share .47 .41 1.31 1.15
Cash Dividends .080 .073 .233 .205
Market Value-High 32.875 36.00 35.75 36.75
Market Value-Low 23.875 27.50 23.875 25.25
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Average Balances
Assets $2,746,668 $2,538,297 $ 2,708,352 $2,505,359
Deposits 2,091,779 2,013,775 2,113,132 1,958,572
Loans 1,979,307 1,842,592 1,938,355 1,854,384
Common Shareholders'
Equity 227,938 206,478 223,754 202,583
Earning Assets 2,482,738 2,330,806 2,453,175 2,307,353
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Key Ratios
Return on Average
Assets 1.32% 1.23% 1.25% 1.19%
Return on Average
Common Shareholders'
Equity 15.87 15.10 15.13 14.76
Average Common
Shareholders'
Equity to Average
Assets 8.30 8.13 8.26 8.09
Net Interest Margin 4.24 4.15 4.18 4.23
Net Charge Offs to
Average Loans .13 .31 .07 .16
Loan Loss Reserve
to Loans 2.29 2.26 2.29 2.26
Nonperforming Assets
to Loans .61 .70 .61 .70
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COMMON STOCK LISTING
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The Nasdaq Stock Market National Market Symbol: "SRCE"
CUSIP No. 336901 10 3
(a) Per share figures have been adjusted for a 10% stock dividend
declared Jan. 14, 1999.