First Quarter Earnings Steady at 1st Source Corporation, Dividend Declared
South Bend, IN - 1st Source Corporation (NASDAQ:SRCE), parent company of 1st Source Bank, today announced net income of $13.51 million for the first quarter of 2015 compared to $13.63 million reported in the first quarter a year ago. Diluted net income per common share for the first quarter of 2015 was $0.56, up 1.82% over the $0.55 in the first quarter of 2014.
At its April 2015 meeting, the Board of Directors approved a cash dividend of $0.18 per common share. The cash dividend is payable on May 15, 2015 to shareholders of record on May 5, 2015.
Christopher J. Murphy, III, Chairman and Chief Executive Officer, commented, "We saw solid growth in our deposits this quarter as we continue to add new client relationships throughout the bank. Credit quality remains strong as does our loan pipeline and we look forward to a steadily improving economy in the coming months. Capital ratios are also strong and exceed the new minimum Well Capitalized requirements on a fully phased-in basis."
"During the quarter we held a ground breaking in Portage, Michigan, to celebrate our second banking center in the greater Kalamazoo area. We look forward to growing in this market and providing greater convenience for our clients there. As always, we remain committed to our mission of helping our clients achieve security, build wealth and realize their dreams."
The net interest margin held close to last year’s level at 3.58% for the first quarter of 2015 versus 3.59% for the same period in 2014. Tax-equivalent net interest income was $39.85 million for the first quarter of 2015, compared to the $39.09 million from 2014’s first quarter.
The reserve for loan and lease losses as of March 31, 2015 was 2.30% of total loans and leases compared to 2.38% at March 31, 2014. Net charge-offs of $0.33 million were recorded for the first quarter of 2015 compared with net recoveries of $0.70 million in the same quarter a year ago. The ratio of nonperforming assets to net loans and leases improved to 0.73% as of March 31, 2015, compared to 0.98% on March 31, 2014.
Total assets at the end of the first quarter of 2015 were $4.86 billion, up 1.87% from the $4.77 billion a year ago. Total loans and leases were $3.70 billion, up 3.45% from March 31, 2014. Total deposits were $3.87 billion, up 4.37% from the comparable figure at March 31, 2014. As of March 31, 2015, the common equity-to-assets ratio was 12.84%, compared to 12.50% a year ago and the tangible common equity-to-tangible assets ratio was 11.29% compared to 10.89% a year earlier.
Noninterest income for the three-month period ended March 31, 2015 was $19.75 million, an increase of 1.81% as compared to the first quarter of 2014. The increase for the quarter was mainly attributed to increased equipment rental income and gains on partnership investments.
Noninterest expense for the three-month period ended March 31, 2015 was $38.06 million, an increase of 5.80% as compared to the first quarter of 2014. The increase for the quarter was mainly attributed to increased salaries expense and group insurance costs, higher loan and lease collection and repossession expenses and increased depreciation on leased equipment.
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, and construction equipment. The Corporation includes 80 community banking centers in 17 counties, 8 trust and wealth management locations, 8 1st Source Insurance offices, as well as 22 specialty finance locations nationwide.
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.
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.
Media contact: Andrea Short, (574) 235-2000