25/07/2024 | Press release | Distributed by Public on 25/07/2024 20:05
For: | Immediate Release | Contact: | Brett Bauer |
July 25, 2024 | 574-235-2000 |
1st SOURCE CORPORATION | ||||||||||
2nd QUARTER 2024 FINANCIAL HIGHLIGHTS | ||||||||||
(Unaudited - Dollars in thousands, except per share data) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||
AVERAGE BALANCES | ||||||||||
Assets | $ | 8,761,006 | $ | 8,652,144 | $ | 8,362,308 | $ | 8,706,575 | $ | 8,342,977 |
Earning assets | 8,303,518 | 8,182,165 | 7,921,528 | 8,242,841 | 7,893,218 | |||||
Investments | 1,554,362 | 1,608,094 | 1,697,699 | 1,581,228 | 1,732,964 | |||||
Loans and leases | 6,606,209 | 6,504,069 | 6,141,157 | 6,555,139 | 6,088,970 | |||||
Deposits | 7,183,678 | 7,011,105 | 6,939,082 | 7,097,391 | 6,904,237 | |||||
Interest bearing liabilities | 5,922,916 | 5,783,480 | 5,496,112 | 5,853,199 | 5,421,221 | |||||
Common shareholders' equity | 1,027,138 | 1,006,286 | 926,157 | 1,016,712 | 908,325 | |||||
Total equity | 1,098,740 | 1,084,654 | 985,406 | 1,091,697 | 967,742 | |||||
INCOME STATEMENT DATA | ||||||||||
Net interest income | $ | 74,050 | $ | 71,915 | $ | 68,516 | $ | 145,965 | $ | 138,081 |
Net interest income - FTE(1)
|
74,194 | 72,063 | 68,695 | 146,257 | 138,486 | |||||
Provision for credit losses | 56 | 6,595 | 47 | 6,651 | 3,096 | |||||
Noninterest income | 23,221 | 22,156 | 22,769 | 45,377 | 46,092 | |||||
Noninterest expense | 49,491 | 49,586 | 49,165 | 99,077 | 98,586 | |||||
Net income | 36,805 | 29,462 | 32,447 | 66,267 | 63,578 | |||||
Net income available to common shareholders | 36,793 | 29,455 | 32,435 | 66,248 | 63,559 | |||||
PER SHARE DATA | ||||||||||
Basic net income per common share | $ | 1.49 | $ | 1.19 | $ | 1.30 | $ | 2.68 | $ | 2.55 |
Diluted net income per common share | 1.49 | 1.19 | 1.30 | 2.68 | 2.55 | |||||
Common cash dividends declared | 0.34 | 0.34 | 0.32 | 0.68 | 0.64 | |||||
Book value per common share(2)
|
42.58 | 41.26 | 37.31 | 42.58 | 37.31 | |||||
Tangible book value per common share(1)
|
39.16 | 37.83 | 33.92 | 39.16 | 33.92 | |||||
Market value - High | 53.74 | 55.25 | 47.94 | 55.25 | 53.85 | |||||
Market value - Low | 47.30 | 48.32 | 38.77 | 47.30 | 38.77 | |||||
Basic weighted average common shares outstanding | 24,495,495 | 24,459,088 | 24,686,435 | 24,477,292 | 24,686,760 | |||||
Diluted weighted average common shares outstanding | 24,495,495 | 24,459,088 | 24,686,435 | 24,477,292 | 24,686,760 | |||||
KEY RATIOS | ||||||||||
Return on average assets | 1.69 | % | 1.37 | % | 1.56 | % | 1.53 | % | 1.54 | % |
Return on average common shareholders' equity | 14.41 | 11.77 | 14.05 | 13.10 | 14.11 | |||||
Average common shareholders' equity to average assets | 11.72 | 11.63 | 11.08 | 11.68 | 10.89 | |||||
End of period tangible common equity to tangible assets(1)
|
10.91 | 10.79 | 10.05 | 10.91 | 10.05 | |||||
Risk-based capital - Common Equity Tier 1(3)
|
13.74 | 13.48 | 13.59 | 13.74 | 13.59 | |||||
Risk-based capital - Tier 1(3)
|
15.38 | 15.15 | 15.20 | 15.38 | 15.20 | |||||
Risk-based capital - Total(3)
|
16.64 | 16.41 | 16.46 | 16.64 | 16.46 | |||||
Net interest margin | 3.59 | 3.54 | 3.47 | 3.56 | 3.53 | |||||
Net interest margin - FTE(1)
|
3.59 | 3.54 | 3.48 | 3.57 | 3.54 | |||||
Efficiency ratio: expense to revenue | 50.88 | 52.71 | 53.86 | 51.78 | 53.53 | |||||
Efficiency ratio: expense to revenue - adjusted(1)
|
50.78 | 52.56 | 53.23 | 51.65 | 53.07 | |||||
Net (recoveries) charge-offs to average loans and leases | (0.12) | 0.38 | (0.06) | 0.13 | (0.04) | |||||
Loan and lease loss allowance to loans and leases | 2.26 | 2.26 | 2.31 | 2.26 | 2.31 | |||||
Nonperforming assets to loans and leases | 0.31 | 0.34 | 0.33 | 0.31 | 0.33 | |||||
June 30, | March 31, | December 31, | September 30, | June 30, | ||||||
2024 | 2024 | 2023 | 2023 | 2023 | ||||||
END OF PERIOD BALANCES | ||||||||||
Assets | $ | 8,878,003 | $ | 8,667,837 | $ | 8,727,958 | $ | 8,525,058 | $ | 8,414,818 |
Loans and leases | 6,652,999 | 6,562,772 | 6,518,505 | 6,353,648 | 6,215,343 | |||||
Deposits | 7,195,924 | 7,055,311 | 7,038,581 | 6,967,492 | 6,976,518 | |||||
Allowance for loan and lease losses | 150,067 | 148,024 | 147,552 | 144,074 | 143,542 | |||||
Goodwill and intangible assets | 83,907 | 83,912 | 83,916 | 83,921 | 83,897 | |||||
Common shareholders' equity | 1,043,515 | 1,009,886 | 989,568 | 924,250 | 921,020 | |||||
Total equity | 1,114,855 | 1,081,549 | 1,068,263 | 982,997 | 980,087 | |||||
ASSET QUALITY | ||||||||||
Loans and leases past due 90 days or more | $ | 185 | $ | 26 | $ | 149 | $ | 154 | $ | 56 |
Nonaccrual loans and leases | 20,297 | 22,097 | 23,381 | 16,617 | 20,481 | |||||
Other real estate | - | - | - | 117 | 193 | |||||
Repossessions | 352 | 308 | 705 | 233 | 47 | |||||
Total nonperforming assets | $ | 20,834 | $ | 22,431 | $ | 24,235 | $ | 17,121 | $ | 20,777 |
1st SOURCE CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||
(Unaudited - Dollars in thousands) | ||||||||
June 30, | March 31, | December 31, | June 30, | |||||
2024 | 2024 | 2023 | 2023 | |||||
ASSETS | ||||||||
Cash and due from banks | $ | 89,592 | $ | 41,533 | $ | 77,474 | $ | 86,742 |
Federal funds sold and interest bearing deposits with other banks | 179,651 | 39,381 | 52,194 | 25,933 | ||||
Investment securities available-for-sale, at fair value | 1,523,548 | 1,583,244 | 1,622,600 | 1,661,405 | ||||
Other investments | 24,585 | 25,075 | 25,075 | 25,320 | ||||
Mortgages held for sale | 2,763 | 2,881 | 1,442 | 2,321 | ||||
Loans and leases, net of unearned discount: | ||||||||
Commercial and agricultural | 721,235 | 731,527 | 766,223 | 797,188 | ||||
Renewable energy | 459,441 | 413,662 | 399,708 | 376,905 | ||||
Auto and light truck | 1,009,967 | 997,465 | 966,912 | 901,054 | ||||
Medium and heavy duty truck | 315,157 | 303,799 | 311,947 | 319,634 | ||||
Aircraft | 1,058,591 | 1,104,058 | 1,078,172 | 1,060,340 | ||||
Construction equipment | 1,132,556 | 1,092,585 | 1,084,752 | 1,012,969 | ||||
Commercial real estate | 1,164,598 | 1,135,595 | 1,129,861 | 985,323 | ||||
Residential real estate and home equity | 654,357 | 643,856 | 637,973 | 617,495 | ||||
Consumer | 137,097 | 140,225 | 142,957 | 144,435 | ||||
Total loans and leases | 6,652,999 | 6,562,772 | 6,518,505 | 6,215,343 | ||||
Allowance for loan and lease losses | (150,067) | (148,024) | (147,552) | (143,542) | ||||
Net loans and leases | 6,502,932 | 6,414,748 | 6,370,953 | 6,071,801 | ||||
Equipment owned under operating leases, net | 13,886 | 16,691 | 20,366 | 26,582 | ||||
Premises and equipment, net | 48,201 | 45,689 | 46,159 | 44,089 | ||||
Goodwill and intangible assets | 83,907 | 83,912 | 83,916 | 83,897 | ||||
Accrued income and other assets | 408,938 | 414,683 | 427,779 | 386,728 | ||||
Total assets | $ | 8,878,003 | $ | 8,667,837 | $ | 8,727,958 | $ | 8,414,818 |
LIABILITIES | ||||||||
Deposits: | ||||||||
Noninterest-bearing demand | $ | 1,578,762 | $ | 1,618,498 | $ | 1,655,728 | $ | 1,721,947 |
Interest-bearing deposits: | ||||||||
Interest-bearing demand | 2,543,724 | 2,364,751 | 2,430,833 | 2,528,231 | ||||
Savings | 1,255,154 | 1,270,401 | 1,213,334 | 1,163,166 | ||||
Time | 1,818,284 | 1,801,661 | 1,738,686 | 1,563,174 | ||||
Total interest-bearing deposits | 5,617,162 | 5,436,813 | 5,382,853 | 5,254,571 | ||||
Total deposits | 7,195,924 | 7,055,311 | 7,038,581 | 6,976,518 | ||||
Short-term borrowings: | ||||||||
Federal funds purchased and securities sold under agreements to repurchase | 70,767 | 82,591 | 55,809 | 69,308 | ||||
Other short-term borrowings | 217,450 | 166,989 | 256,550 | 118,377 | ||||
Total short-term borrowings | 288,217 | 249,580 | 312,359 | 187,685 | ||||
Long-term debt and mandatorily redeemable securities | 39,136 | 39,406 | 47,911 | 46,649 | ||||
Subordinated notes | 58,764 | 58,764 | 58,764 | 58,764 | ||||
Accrued expenses and other liabilities | 181,107 | 183,227 | 202,080 | 165,115 | ||||
Total liabilities | 7,763,148 | 7,586,288 | 7,659,695 | 7,434,731 | ||||
SHAREHOLDERS' EQUITY | ||||||||
Preferred stock; no par value
Authorized 10,000,000 shares; none issued or outstanding
|
- | - | - | - | ||||
Common stock; no par value
Authorized 40,000,000 shares; issued 28,205,674 shares at June 30, 2024, March 31, 2024, December 31, 2023, and June 30, 2023, respectively
|
436,538 | 436,538 | 436,538 | 436,538 | ||||
Retained earnings | 841,790 | 812,413 | 789,842 | 744,442 | ||||
Cost of common stock in treasury (3,698,651, 3,728,016, 3,771,070, and 3,523,113 shares at June 30, 2024, March 31, 2024, December 31, 2023, and
June 30, 2023, respectively)
|
(129,248) | (129,790) | (130,489) | (120,410) | ||||
Accumulated other comprehensive loss | (105,565) | (109,275) | (106,323) | (139,550) | ||||
Total shareholders' equity | 1,043,515 | 1,009,886 | 989,568 | 921,020 | ||||
Noncontrolling interests | 71,340 | 71,663 | 78,695 | 59,067 | ||||
Total equity | 1,114,855 | 1,081,549 | 1,068,263 | 980,087 | ||||
Total liabilities and equity | $ | 8,878,003 | $ | 8,667,837 | $ | 8,727,958 | $ | 8,414,818 |
1st SOURCE CORPORATION | ||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||
(Unaudited - Dollars in thousands, except per share amounts) | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | ||||||
2024 | 2024 | 2023 | 2024 | 2023 | ||||||
Interest income: | ||||||||||
Loans and leases | $ | 113,101 | $ | 109,202 | $ | 93,300 | $ | 222,303 | $ | 179,989 |
Investment securities, taxable | 5,900 | 6,079 | 5,946 | 11,979 | 12,594 | |||||
Investment securities, tax-exempt | 254 | 260 | 330 | 514 | 812 | |||||
Other | 1,914 | 927 | 978 | 2,841 | 1,615 | |||||
Total interest income | 121,169 | 116,468 | 100,554 | 237,637 | 195,010 | |||||
Interest expense: | ||||||||||
Deposits | 43,095 | 39,744 | 28,870 | 82,839 | 50,133 | |||||
Short-term borrowings | 2,158 | 3,102 | 1,625 | 5,260 | 3,018 | |||||
Subordinated notes | 1,061 | 1,061 | 1,028 | 2,122 | 2,048 | |||||
Long-term debt and mandatorily redeemable securities | 805 | 646 | 515 | 1,451 | 1,730 | |||||
Total interest expense | 47,119 | 44,553 | 32,038 | 91,672 | 56,929 | |||||
Net interest income | 74,050 | 71,915 | 68,516 | 145,965 | 138,081 | |||||
Provision for credit losses | 56 | 6,595 | 47 | 6,651 | 3,096 | |||||
Net interest income after provision for credit losses | 73,994 | 65,320 | 68,469 | 139,314 | 134,985 | |||||
Noninterest income: | ||||||||||
Trust and wealth advisory | 7,081 | 6,287 | 6,467 | 13,368 | 12,146 | |||||
Service charges on deposit accounts | 3,203 | 3,070 | 3,118 | 6,273 | 6,121 | |||||
Debit card | 4,562 | 4,201 | 4,701 | 8,763 | 9,208 | |||||
Mortgage banking | 1,280 | 950 | 926 | 2,230 | 1,728 | |||||
Insurance commissions | 1,611 | 1,776 | 1,641 | 3,387 | 3,670 | |||||
Equipment rental | 1,257 | 1,671 | 2,326 | 2,928 | 4,829 | |||||
Losses on investment securities available-for-sale | - | - | - | - | (44) | |||||
Other | 4,227 | 4,201 | 3,590 | 8,428 | 8,434 | |||||
Total noninterest income | 23,221 | 22,156 | 22,769 | 45,377 | 46,092 | |||||
Noninterest expense: | ||||||||||
Salaries and employee benefits | 29,238 | 29,572 | 28,236 | 58,810 | 56,833 | |||||
Net occupancy | 2,908 | 2,996 | 2,676 | 5,904 | 5,298 | |||||
Furniture and equipment | 1,265 | 1,149 | 1,414 | 2,414 | 2,721 | |||||
Data processing | 6,712 | 6,500 | 6,268 | 13,212 | 12,425 | |||||
Depreciation - leased equipment | 999 | 1,288 | 1,876 | 2,287 | 3,898 | |||||
Professional fees | 1,713 | 1,345 | 1,704 | 3,058 | 2,386 | |||||
FDIC and other insurance | 1,627 | 1,657 | 1,344 | 3,284 | 2,704 | |||||
Business development and marketing | 2,026 | 1,744 | 1,649 | 3,770 | 3,621 | |||||
Other | 3,003 | 3,335 | 3,998 | 6,338 | 8,700 | |||||
Total noninterest expense | 49,491 | 49,586 | 49,165 | 99,077 | 98,586 | |||||
Income before income taxes | 47,724 | 37,890 | 42,073 | 85,614 | 82,491 | |||||
Income tax expense | 10,919 | 8,428 | 9,626 | 19,347 | 18,913 | |||||
Net income | 36,805 | 29,462 | 32,447 | 66,267 | 63,578 | |||||
Net (income) loss attributable to noncontrolling interests | (12) | (7) | (12) | (19) | (19) | |||||
Net income available to common shareholders | $ | 36,793 | $ | 29,455 | $ | 32,435 | $ | 66,248 | $ | 63,559 |
Per common share: | ||||||||||
Basic net income per common share | $ | 1.49 | $ | 1.19 | $ | 1.30 | $ | 2.68 | $ | 2.55 |
Diluted net income per common share | $ | 1.49 | $ | 1.19 | $ | 1.30 | $ | 2.68 | $ | 2.55 |
Basic weighted average common shares outstanding | 24,495,495 | 24,459,088 | 24,686,435 | 24,477,292 | 24,686,760 | |||||
Diluted weighted average common shares outstanding | 24,495,495 | 24,459,088 | 24,686,435 | 24,477,292 | 24,686,760 |
1st SOURCE CORPORATION | ||||||||||||||||||
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL | ||||||||||||||||||
(Unaudited - Dollars in thousands) | ||||||||||||||||||
Three Months Ended | ||||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||||||||||
Average Balance |
Interest Income/Expense |
Yield/ Rate |
Average Balance |
Interest Income/Expense |
Yield/ Rate |
Average Balance |
Interest Income/Expense |
Yield/ Rate |
||||||||||
ASSETS | ||||||||||||||||||
Investment securities available-for-sale: | ||||||||||||||||||
Taxable | $ | 1,524,751 | $ | 5,900 | 1.56 | % | $ | 1,576,579 | $ | 6,079 | 1.55 | % | $ | 1,655,790 | $ | 5,946 | 1.44 | % |
Tax exempt(1)
|
29,611 | 319 | 4.33 | % | 31,515 | 327 | 4.17 | % | 41,909 | 411 | 3.93 | % | ||||||
Mortgages held for sale | 4,179 | 65 | 6.26 | % | 1,830 | 34 | 7.47 | % | 1,879 | 28 | 5.98 | % | ||||||
Loans and leases, net of unearned discount(1)
|
6,606,209 | 113,115 | 6.89 | % | 6,504,069 | 109,249 | 6.76 | % | 6,141,157 | 93,370 | 6.10 | % | ||||||
Other investments | 138,768 | 1,914 | 5.55 | % | 68,172 | 927 | 5.47 | % | 80,793 | 978 | 4.86 | % | ||||||
Total earning assets(1)
|
8,303,518 | 121,313 | 5.88 | % | 8,182,165 | 116,616 | 5.73 | % | 7,921,528 | 100,733 | 5.10 | % | ||||||
Cash and due from banks | 60,908 | 61,889 | 72,880 | |||||||||||||||
Allowance for loan and lease losses | (149,688) | (148,982) | (144,337) | |||||||||||||||
Other assets | 546,268 | 557,072 | 512,237 | |||||||||||||||
Total assets | $ | 8,761,006 | $ | 8,652,144 | $ | 8,362,308 | ||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||||||||
Interest-bearing deposits | $ | 5,603,880 | $ | 43,095 | 3.09 | % | $ | 5,394,854 | $ | 39,744 | 2.96 | % | $ | 5,192,206 | $ | 28,870 | 2.23 | % |
Short-term borrowings: | ||||||||||||||||||
Securities sold under agreements to repurchase | 61,729 | 146 | 0.95 | % | 47,973 | 47 | 0.39 | % | 69,301 | 32 | 0.19 | % | ||||||
Other short-term borrowings | 159,953 | 2,012 | 5.06 | % | 234,672 | 3,055 | 5.24 | % | 129,230 | 1,593 | 4.94 | % | ||||||
Subordinated notes | 58,764 | 1,061 | 7.26 | % | 58,764 | 1,061 | 7.26 | % | 58,764 | 1,028 | 7.02 | % | ||||||
Long-term debt and mandatorily redeemable securities
|
38,590 | 805 | 8.39 | % | 47,217 | 646 | 5.50 | % | 46,611 | 515 | 4.43 | % | ||||||
Total interest-bearing liabilities
|
5,922,916 | 47,119 | 3.20 | % | 5,783,480 | 44,553 | 3.10 | % | 5,496,112 | 32,038 | 2.34 | % | ||||||
Noninterest-bearing deposits
|
1,579,798 | 1,616,251 | 1,746,876 | |||||||||||||||
Other liabilities | 159,552 | 167,759 | 133,914 | |||||||||||||||
Shareholders' equity | 1,027,138 | 1,006,286 | 926,157 | |||||||||||||||
Noncontrolling interests
|
71,602 | 78,368 | 59,249 | |||||||||||||||
Total liabilities and equity
|
$ | 8,761,006 | $ | 8,652,144 | $ | 8,362,308 | ||||||||||||
Less: Fully tax-equivalent adjustments | (144) | (148) | (179) | |||||||||||||||
Net interest income/margin (GAAP-derived)(1)
|
$ | 74,050 | 3.59 | % | $ | 71,915 | 3.54 | % | $ | 68,516 | 3.47 | % | ||||||
Fully tax-equivalent adjustments
|
144 | 148 | 179 | |||||||||||||||
Net interest income/margin - FTE(1)
|
$ | 74,194 | 3.59 | % | $ | 72,063 | 3.54 | % | $ | 68,695 | 3.48 | % | ||||||
(1) See "Reconciliation of Non-GAAP Financial Measures" for more information on this performance measure/ratio. |
1st SOURCE CORPORATION | ||||||||||||
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL | ||||||||||||
(Unaudited - Dollars in thousands) | ||||||||||||
Six Months Ended | ||||||||||||
June 30, 2024 | June 30, 2023 | |||||||||||
Average Balance |
Interest Income/Expense |
Yield/ Rate |
Average Balance |
Interest Income/Expense |
Yield/ Rate |
|||||||
ASSETS | ||||||||||||
Investment securities available-for-sale: | ||||||||||||
Taxable | $ | 1,550,665 | $ | 11,979 | 1.55 | % | $ | 1,683,330 | $ | 12,594 | 1.51 | % |
Tax exempt(1)
|
30,563 | 646 | 4.25 | % | 49,634 | 1,016 | 4.13 | % | ||||
Mortgages held for sale | 3,004 | 99 | 6.63 | % | 2,143 | 60 | 5.65 | % | ||||
Loans and leases, net of unearned discount(1)
|
6,555,139 | 222,364 | 6.82 | % | 6,088,970 | 180,130 | 5.97 | % | ||||
Other investments | 103,470 | 2,841 | 5.52 | % | 69,141 | 1,615 | 4.71 | % | ||||
Total earning assets(1)
|
8,242,841 | 237,929 | 5.80 | % | 7,893,218 | 195,415 | 4.99 | % | ||||
Cash and due from banks | 61,399 | 72,403 | ||||||||||
Allowance for loan and lease losses | (149,335) | (142,705) | ||||||||||
Other assets | 551,670 | 520,061 | ||||||||||
Total assets | $ | 8,706,575 | $ | 8,342,977 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Interest-bearing deposits | 5,499,367 | 82,839 | 3.03 | % | 5,090,713 | 50,133 | 1.99 | % | ||||
Short-term borrowings: | ||||||||||||
Securities sold under agreements to repurchase | 54,851 | 193 | 0.71 | % | 101,721 | 72 | 0.14 | % | ||||
Other short-term borrowings | 197,313 | 5,067 | 5.16 | % | 124,024 | 2,946 | 4.79 | % | ||||
Subordinated notes | 58,764 | 2,122 | 7.26 | % | 58,764 | 2,048 | 7.03 | % | ||||
Long-term debt and mandatorily redeemable securities
|
42,904 | 1,451 | 6.80 | % | 45,999 | 1,730 | 7.58 | % | ||||
Total interest-bearing liabilities
|
5,853,199 | 91,672 | 3.15 | % | 5,421,221 | 56,929 | 2.12 | % | ||||
Noninterest-bearing deposits | 1,598,024 | 1,813,524 | ||||||||||
Other liabilities | 163,655 | 140,490 | ||||||||||
Shareholders' equity | 1,016,712 | 908,325 | ||||||||||
Noncontrolling interests | 74,985 | 59,417 | ||||||||||
Total liabilities and equity
|
$ | 8,706,575 | $ | 8,342,977 | ||||||||
Less: Fully tax-equivalent adjustments | (292) | (405) | ||||||||||
Net interest income/margin (GAAP-derived)(1)
|
$ | 145,965 | 3.56 | % | $ | 138,081 | 3.53 | % | ||||
Fully tax-equivalent adjustments
|
292 | 405 | ||||||||||
Net interest income/margin - FTE(1)
|
$ | 146,257 | 3.57 | % | $ | 138,486 | 3.54 | % | ||||
(1) See "Reconciliation of Non-GAAP Financial Measures" for more information on this performance measure/ratio. |
1st SOURCE CORPORATION | |||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||
(Unaudited - Dollars in thousands, except per share data) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||||
2024 | 2024 | 2023 | 2024 | 2023 | |||||||
Calculation of Net Interest Margin | |||||||||||
(A) | Interest income (GAAP) | $ | 121,169 | $ | 116,468 | $ | 100,554 | $ | 237,637 | $ | 195,010 |
Fully tax-equivalent adjustments: | |||||||||||
(B) | - Loans and leases | 79 | 81 | 98 | 160 | 201 | |||||
(C) | - Tax exempt investment securities | 65 | 67 | 81 | 132 | 204 | |||||
(D) | Interest income - FTE (A+B+C) | 121,313 | 116,616 | 100,733 | 237,929 | 195,415 | |||||
(E) | Interest expense (GAAP) | 47,119 | 44,553 | 32,038 | 91,672 | 56,929 | |||||
(F) | Net interest income (GAAP) (A-E) | 74,050 | 71,915 | 68,516 | 145,965 | 138,081 | |||||
(G) | Net interest income - FTE (D-E) | 74,194 | 72,063 | 68,695 | 146,257 | 138,486 | |||||
(H) | Annualization factor | 4.022 | 4.022 | 4.011 | 2.011 | 2.017 | |||||
(I) | Total earning assets | $ | 8,303,518 | $ | 8,182,165 | $ | 7,921,528 | $ | 8,242,841 | $ | 7,893,218 |
Net interest margin (GAAP-derived) (F*H)/I | 3.59 | % | 3.54 | % | 3.47 | % | 3.56 | % | 3.53 | % | |
Net interest margin - FTE (G*H)/I | 3.59 | % | 3.54 | % | 3.48 | % | 3.57 | % | 3.54 | % | |
Calculation of Efficiency Ratio | |||||||||||
(F) | Net interest income (GAAP) | $ | 74,050 | $ | 71,915 | $ | 68,516 | $ | 145,965 | $ | 138,081 |
(G) | Net interest income - FTE | 74,194 | 72,063 | 68,695 | 146,257 | 138,486 | |||||
(J) | Plus: noninterest income (GAAP) | 23,221 | 22,156 | 22,769 | 45,377 | 46,092 | |||||
(K) | Less: gains/losses on investment securities and partnership investments | (929) | (1,037) | (748) | (1,966) | (2,270) | |||||
(L) | Less: depreciation - leased equipment | (999) | (1,288) | (1,876) | (2,287) | (3,898) | |||||
(M) | Total net revenue (GAAP) (F+J) | 97,271 | 94,071 | 91,285 | 191,342 | 184,173 | |||||
(N) | Total net revenue - adjusted (G+J-K-L) | 95,487 | 91,894 | 88,840 | 187,381 | 178,410 | |||||
(O) | Noninterest expense (GAAP) | 49,491 | 49,586 | 49,165 | 99,077 | 98,586 | |||||
(L) | Less:depreciation - leased equipment | (999) | (1,288) | (1,876) | (2,287) | (3,898) | |||||
(P) | Noninterest expense - adjusted (O-L) | 48,492 | 48,298 | 47,289 | 96,790 | 94,688 | |||||
Efficiency ratio (GAAP-derived) (O/M) | 50.88 | % | 52.71 | % | 53.86 | % | 51.78 | % | 53.53 | % | |
Efficiency ratio - adjusted (P/N) | 50.78 | % | 52.56 | % | 53.23 | % | 51.65 | % | 53.07 | % | |
End of Period | |||||||||||
June 30, | March 31, | June 30, | |||||||||
2024 | 2024 | 2023 | |||||||||
Calculation of Tangible Common Equity-to-Tangible Assets Ratio | |||||||||||
(Q) | Total common shareholders' equity (GAAP) | $ | 1,043,515 | $ | 1,009,886 | $ | 921,020 | ||||
(R) | Less: goodwill and intangible assets | (83,907) | (83,912) | (83,897) | |||||||
(S) | Total tangible common shareholders' equity (Q-R) | $ | 959,608 | $ | 925,974 | $ | 837,123 | ||||
(T) | Total assets (GAAP) | 8,878,003 | 8,667,837 | 8,414,818 | |||||||
(R) | Less: goodwill and intangible assets | (83,907) | (83,912) | (83,897) | |||||||
(U) | Total tangible assets (T-R) | $ | 8,794,096 | $ | 8,583,925 | $ | 8,330,921 | ||||
Common equity-to-assets ratio (GAAP-derived) (Q/T) | 11.75 | % | 11.65 | % | 10.95 | % | |||||
Tangible common equity-to-tangible assets ratio (S/U) | 10.91 | % | 10.79 | % | 10.05 | % | |||||
Calculation of Tangible Book Value per Common Share | |||||||||||
(Q) | Total common shareholders' equity (GAAP) | $ | 1,043,515 | $ | 1,009,886 | $ | 921,020 | ||||
(V) | Actual common shares outstanding | 24,507,023 | 24,477,658 | 24,682,561 | |||||||
Book value per common share (GAAP-derived) (Q/V)*1000 | $ | 42.58 | $ | 41.26 | $ | 37.31 | |||||
Tangible common book value per share (S/V)*1000 | $ | 39.16 | $ | 37.83 | $ | 33.92 |