South Bend, IN - 1st Source Corporation (Nasdaq:SRCE), parent company of 1st Source Bank, today announced net income of $13.63 million for the first quarter of 2014, up 9.90% compared to the $12.40 million reported in the first quarter a year ago. Diluted net income per common share for the first quarter of 2014 amounted to $0.55, up 10.00% over the $0.50 in the first quarter of 2013.
At its April 2014 meeting, the 1st Source Board of Directors approved a cash dividend of $0.18 per common share. The cash dividend is payable on May 15, 2014 to shareholders of record as of May 5, 2014.
According to Christopher J. Murphy, III, Chairman, “It was another good quarter for 1st Source Corporation. All of our performance benchmarks are moving in the right direction. Net income was up almost 10.00% over a year ago, we had growth in loans along with net recoveries in our loan and lease portfolio. Also, net interest income was up, noninterest income was up, and expenses were down in spite of increased snow plowing and heating costs from record cold and snow in the first quarter. Additionally, we increased our dividend 5.88% over the first quarter of last year, continuing our streak of increasing dividends for over 26 years, a feat that puts us in the top 3% of publicly traded companies."
“During the quarter, we held a grand opening for a new banking center in Lafayette, a growth market for us in Indiana; and we had 3 banking centers in Ft. Wayne in the midst of remodeling to serve our clients more effectively and conveniently. Most importantly, we continued to add new client relationships throughout the bank in business banking, personal banking, specialty finance, personal asset management, and insurance.”
“We remain focused on our goals, and look forward to better weather and a steadily improving economy in the coming months,” Murphy concluded.
Return on average total assets for 1st Source Corporation was 1.18% compared to 1.11% a year ago, and return on average common shareholders' equity was 9.30% compared to 8.90% for the first quarter of 2013. As of March 31, 2014, the 1st Source common equity-to-assets ratio was 12.50%, up from 12.47% a year ago and its tangible common equity-to-tangible assets ratio was 10.89% compared to 10.76% a year earlier. Common shareholders’ equity was $596.59 million, up 4.97% from March 31, 2013. At the end of March 2014, total assets were $4.77 billion, up 4.72% from the $4.56 billion a year ago. Total loans and leases at March 31, 2014 increased 6.06%, and total deposits at March 31, 2014 increased slightly from a year ago.
For the first quarter of 2014, 1st Source provided $0.80 million to the reserve for loan and lease losses compared to $0.76 million in the first quarter of 2013. Net recoveries were $701,000 for the first quarter compared to net charge-offs of $60,000 for the first quarter of 2013. The reserve for loan and lease losses as of March 31, 2014 was 2.38% of total loans and leases, compared to 2.49% a year earlier. The ratio of nonperforming assets to net loans and leases dropped to 0.98% on March 31, 2014, compared to 1.41% for the same period last year.
Tax-equivalent net interest income was $39.09 million for the first quarter of 2014, compared to the $38.22 million from 2013's first quarter, and the net interest margin was 3.59% compared to 3.64% in the first quarter of 2013 and 3.59% in the fourth quarter of 2013.
Noninterest income for the three-month period ended March 31, 2014 was $19.40 million, an increase of 2.37% as compared to the first quarter of 2013. Noninterest income increased mainly due to gains on the sale of investment securities available-for-sale and higher trust fee income.
Noninterest expense for the three-month period ended March 31, 2014 was $35.97 million, a decrease of 1.58% as compared to the first quarter of 2013. Noninterest expense decreased primarily as a result of lower loan and lease collection and repossession expenses.
1st Source common stock is traded on the NASDAQ Global Select Market under “SRCE” and appears in the National Market System tables in many daily newspapers under the code name “1st Src.” Since 1863, 1st Source has been committed to the success of the communities it serves. For more information, visit www.1stsource.com
1st Source serves the northern half of Indiana and southwest Michigan and is the largest locally controlled financial institution headquartered in the area. While delivering a comprehensive range of consumer and commercial banking services through its community bank offices, 1st Source has distinguished itself with highly personalized services. 1st Source Bank also competes for business nationally by offering specialized financing services for new and used private and cargo aircraft, automobiles for leasing and rental agencies, medium and heavy duty trucks, construction and environmental equipment. The Corporation includes 77 community banking centers in 17 counties, 9 trust and wealth management locations, 8 1st Source Insurance offices, as well as 21 specialty finance locations nationwide. Celebrating 150 years, 1st Source has a history dating back to 1863. The Bank has a tradition of providing superior service to clients while playing a leadership role in the continued development of the communities it serves.
In addition to the results presented in accordance with generally accepted accounting principles in the United States of America, this press release contains certain non-GAAP financial measures. 1st Source Corporation believes that providing non-GAAP financial measures provides investors with information useful to understanding our financial performance. Additionally, these non-GAAP measures are used by management for planning and forecasting purposes, including measures based on “tangible equity” which is “common shareholders’ equity” excluding intangible assets.
1st Source may be accessed on its home page at “www.1stsource.com.” Its common stock is traded on the NASDAQ Global Select Market under "SRCE" and appears in the National Market System tables in many daily newspapers under the code name "1st Src". Except for historical information contained herein, the matters discussed in this document express “forward-looking statements.” Generally, the words “believe,” “contemplate,” “seek,” “plan,” “possible,” “assume,” “expect,” “intend,” “targeted,” “continue,” “remain,” “estimate,” “anticipate,” “project,” “will,” “should,” “indicate,” “would,” “may” 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 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; 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, which filings are available from the SEC. 1st Source undertakes no obligation to publicly update or revise any forward-looking statements.