(via NewsDirect)
FULL YEAR AND QUARTERLY HIGHLIGHTS
- Net income was a record
$120.51 million for the year of 2022, up 1.67% from 2021 and was$31.07 million for the fourth quarter of 2022, down 5.10% from the previous quarter and up 12.07% from the fourth quarter of 2021. Diluted net income per common share was a record$4.84 for the year of 2022, up 2.98% from 2021 and was$1.25 for the fourth quarter of 2022, down 5.30% from the previous quarter and up 12.61% from the prior year’s fourth quarter. - Cash dividend of
$0.32 per common share was approved, up 3.23% from the cash dividend declared a year ago. - Average loans and leases net of Paycheck Protection Program (PPP) loans grew
$402.04 million in 2022, up 7.82% from 2021 and grew$215.70 million during the fourth quarter, up 3.84% (15.36% annualized growth) from the previous quarter. - Tax-equivalent net interest income was
$264.10 million for the year, up 11.39% from 2021 and was$71.67 million in the fourth quarter, up 3.70% from the previous quarter and up 19.10% from the fourth quarter of 2021. Tax-equivalent net interest margin was 3.45% for 2022, up 22 basis points from 2021 and was 3.69% for the fourth quarter of 2022, up nine basis points from the prior quarter and up 60 basis points from the fourth quarter of 2021. - Due to strong loan growth,
$13.25 million was provided and charged against earnings to the provision for credit losses for the full year of 2022 compared to the recognition of a$4.30 million recovery in the provision for credit losses during 2021. During the fourth quarter,$5.34 million was recognized in the provision for credit losses compared to a provision of$3.17 million in the previous quarter and a recovery in the provision of$1.12 million in the fourth quarter of 2021.
At its
Christopher J. Murphy III, Chairman and Chief Executive Officer, commented, “We are pleased to announce record net income for the second year in a row and we reached our 35th consecutive year of dividend growth. We were able to grow average loans and leases by
“I am pleased also to report the
“Lastly, as recently reported, our Board of Directors made two promotions with an eye on the future of our organization. Effective
FULL YEAR AND FOURTH QUARTER 2022 FINANCIAL RESULTS
Loans
Annual average loans and leases of
Deposits
Annual average deposits for 2022 were
Net Interest Income and Net Interest Margin
For the twelve months of 2022, tax-equivalent net interest income was
Net interest margin for the year ending
Fourth quarter 2022 net interest margin was 3.68%, an increase of 59 basis points from the 3.09% for the same period in 2021 and an increase of nine basis points from the prior quarter. Fourth quarter 2022 net interest margin on a fully tax-equivalent basis was 3.69%, an increase of 60 basis points from the 3.09% for the same period in 2021 and an increase of nine basis points from the 3.60% in the prior quarter. PPP loan fees and net interest recoveries had a positive three-basis point impact on the fourth quarter net interest margin compared to a positive 17-basis point impact during the fourth quarter of 2021.
Seven
Noninterest Income
Noninterest income for the twelve months ended
Noninterest income during the twelve months ended
The increase in noninterest income from the third quarter was mainly due to the aforementioned higher partnership investment gains on sale of renewable energy tax equity investments of
Noninterest Expense
Noninterest expense for the twelve months ended
The decrease in noninterest expense for 2022 from 2021 was primarily due to lower leased equipment depreciation resulting from a reduction in the average equipment rental portfolio, a
The increase in noninterest expense from the third quarter was mainly due to a seasonal increase in group insurance claims, a rise in the provision for unfunded loan commitments, higher legal fees, and increased snow removal costs due to seasonal weather conditions offset by a lower valuation provision for interest rate swaps with customers.
Additionally, we had a one-time federal income tax adjustment during the fourth quarter 2022 related to disallowed compensation of
Credit
The allowance for loan and lease losses as of
Net charge-offs that have been recorded for the full year of 2022 were
The provision for credit losses was
Capital
As of
Book value per share declined to
During 2022, 149,819 shares were repurchased for treasury reducing common shareholders’ equity by
ABOUT 1ST SOURCE CORPORATION
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 its clients, individuals, businesses and the communities it serves. For more information, visit www.1stsource.com.
1st Source serves the northern half of
FORWARD LOOKING STATEMENTS
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
NON-GAAP FINANCIAL MEASURES
The accounting and reporting policies of 1st Source conform to generally accepted accounting principles (“GAAP”) in
Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent (“FTE”) basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses and lease depreciation), measures how much it costs to produce
See the table marked “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of certain non-GAAP financial measures used by the Company with their most closely related GAAP measures.
# # #
(charts attached)
Category: Earnings
4th QUARTER 2022 FINANCIAL HIGHLIGHTS | ||||||
(Unaudited - Dollars in thousands, except per share data) | ||||||
Three Months Ended | Twelve Months Ended | |||||
2022 | 2022 | 2021 | 2022 | 2021 | ||
AVERAGE BALANCES | ||||||
Assets | ||||||
Earning assets | 7,707,769 | 7,615,593 | 7,715,838 | 7,661,168 | 7,338,639 | |
Investments | 1,795,200 | 1,863,979 | 1,715,227 | 1,845,351 | 1,443,380 | |
Loans and leases | 5,840,593 | 5,627,718 | 5,311,964 | 5,566,701 | 5,437,817 | |
Deposits | 6,758,465 | 6,673,239 | 6,700,575 | 6,711,376 | 6,342,527 | |
Interest bearing liabilities | 5,086,446 | 4,958,209 | 4,959,322 | 5,002,168 | 4,784,697 | |
Common shareholders’ equity | 846,449 | 873,209 | 918,950 | 872,721 | 906,951 | |
Total equity | 906,613 | 931,412 | 966,063 | 929,321 | 951,991 | |
INCOME STATEMENT DATA | ||||||
Net interest income | ||||||
Net interest income - FTE(1) | 71,670 | 69,116 | 60,176 | 264,097 | 237,097 | |
Provision (recovery of provision) for credit losses | 5,342 | 3,167 | (1,117) | 13,245 | (4,303) | |
Noninterest income | 23,280 | 22,007 | 23,828 | 91,262 | 100,092 | |
Noninterest expense | 48,377 | 45,331 | 48,746 | 184,699 | 186,148 | |
Net income | 31,056 | 32,745 | 27,735 | 120,532 | 118,557 | |
Net income available to common shareholders | 31,068 | 32,737 | 27,723 | 120,509 | 118,534 | |
PER SHARE DATA | ||||||
Basic net income per common share | ||||||
Diluted net income per common share | 1.25 | 1.32 | 1.11 | 4.84 | 4.70 | |
Common cash dividends declared | 0.32 | 0.32 | 0.31 | 1.26 | 1.21 | |
Book value per common share(2) | 35.04 | 33.50 | 37.04 | 35.04 | 37.04 | |
Tangible book value per common share(1) | 31.63 | 30.10 | 33.64 | 31.63 | 33.64 | |
Market value - High | 59.94 | 51.29 | 51.20 | 59.94 | 51.20 | |
Market value - Low | 46.40 | 42.38 | 45.91 | 42.29 | 38.73 | |
Basic weighted average common shares outstanding | 24,658,294 | 24,656,736 | 24,775,288 | 24,687,324 | 25,038,127 | |
Diluted weighted average common shares outstanding | 24,658,294 | 24,656,736 | 24,775,288 | 24,687,324 | 25,038,127 | |
KEY RATIOS | ||||||
Return on average assets | 1.51 % | 1.62 % | 1.36 % | 1.49 % | 1.53 % | |
Return on average common shareholders’ equity | 14.56 | 14.87 | 11.97 | 13.81 | 13.07 | |
Average common shareholders’ equity to average assets | 10.36 | 10.89 | 11.33 | 10.81 | 11.73 | |
End of period tangible common equity to tangible assets(1) | 9.45 | 9.26 | 10.39 | 9.45 | 10.39 | |
Risk-based capital - Common Equity Tier 1(3) | 13.19 | 13.50 | 13.72 | 13.19 | 13.72 | |
Risk-based capital - Tier 1(3) | 14.84 | 15.24 | 15.50 | 14.84 | 15.50 | |
Risk-based capital - Total(3) | 16.10 | 16.50 | 16.76 | 16.10 | 16.76 | |
Net interest margin | 3.68 | 3.59 | 3.09 | 3.44 | 3.22 | |
Net interest margin - FTE(1) | 3.69 | 3.60 | 3.09 | 3.45 | 3.23 | |
Efficiency ratio: expense to revenue | 51.07 | 49.85 | 58.10 | 52.07 | 55.28 | |
Efficiency ratio: expense to revenue - adjusted(1) | 51.05 | 48.71 | 56.60 | 51.13 | 53.48 | |
Net charge offs to average loans and leases | 0.12 | 0.02 | 0.38 | 0.03 | 0.16 | |
Loan and lease loss allowance to loans and leases | 2.32 | 2.36 | 2.38 | 2.32 | 2.38 | |
Nonperforming assets to loans and leases | 0.45 | 0.48 | 0.77 | 0.45 | 0.77 | |
2022 | 2022 | 2022 | 2022 | 2021 | ||
END OF PERIOD BALANCES | ||||||
Assets | ||||||
Loans and leases | 6,011,162 | 5,762,078 | 5,551,216 | 5,394,003 | 5,346,214 | |
Deposits | 6,928,265 | 6,621,231 | 6,744,896 | 6,673,092 | 6,679,065 | |
Allowance for loan and lease losses | 139,268 | 135,736 | 132,865 | 129,959 | 127,492 | |
83,907 | 83,911 | 83,916 | 83,921 | 83,926 | ||
Common shareholders’ equity | 864,068 | 826,059 | 856,251 | 864,850 | 916,255 | |
Total equity | 923,766 | 886,360 | 910,667 | 919,470 | 969,464 | |
ASSET QUALITY | ||||||
Loans and leases past due 90 days or more | ||||||
Nonaccrual loans and leases | 26,420 | 27,813 | 33,490 | 35,435 | 38,706 | |
Other real estate | 104 | — | — | — | — | |
Repossessions | 327 | 26 | 102 | 73 | 861 | |
Equipment owned under operating leases | 22 | 1 | 43 | 343 | 1,518 | |
Total nonperforming assets |
(1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio.
(2) Calculated as common shareholders’ equity divided by common shares outstanding at the end of the period.
(3) Calculated under banking regulatory guidelines.
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||
(Unaudited - Dollars in thousands) | |||||||
2022 | 2022 | 2022 | 2021 | ||||
ASSETS | |||||||
Cash and due from banks | |||||||
Federal funds sold and interest bearing deposits with other banks | 38,094 | 30,652 | 164,848 | 470,767 | |||
Investment securities available-for-sale | 1,775,128 | 1,801,194 | 1,836,389 | 1,863,041 | |||
Other investments | 25,293 | 25,538 | 25,538 | 27,189 | |||
Mortgages held for sale | 3,914 | 3,058 | 5,525 | 13,284 | |||
Loans and leases, net of unearned discount: | |||||||
Commercial and agricultural | 812,031 | 835,762 | 842,618 | 918,712 | |||
Solar | 381,163 | 358,635 | 350,472 | 348,302 | |||
Auto and light truck | 808,117 | 743,324 | 708,720 | 603,775 | |||
Medium and heavy duty truck | 313,862 | 293,068 | 278,334 | 259,740 | |||
Aircraft | 1,077,722 | 997,995 | 959,876 | 898,401 | |||
Construction equipment | 938,503 | 878,692 | 803,734 | 754,273 | |||
Commercial real estate | 943,745 | 937,423 | 931,058 | 929,341 | |||
Residential real estate and home equity | 584,737 | 568,602 | 535,589 | 500,590 | |||
Consumer | 151,282 | 148,577 | 140,815 | 133,080 | |||
Total loans and leases | 6,011,162 | 5,762,078 | 5,551,216 | 5,346,214 | |||
Allowance for loan and lease losses | (139,268) | (135,736) | (132,865) | (127,492) | |||
Net loans and leases | 5,871,894 | 5,626,342 | 5,418,351 | 5,218,722 | |||
Equipment owned under operating leases, net | 31,700 | 32,964 | 36,579 | 48,433 | |||
Net premises and equipment | 44,773 | 44,837 | 45,250 | 47,038 | |||
83,907 | 83,911 | 83,916 | 83,926 | ||||
Accrued income and other assets | 380,010 | 362,038 | 296,048 | 269,469 | |||
Total assets | |||||||
LIABILITIES | |||||||
Deposits: | |||||||
Noninterest bearing demand | |||||||
Interest-bearing deposits: | |||||||
Interest-bearing demand | 2,591,464 | 2,527,461 | 2,644,590 | 2,455,580 | |||
Savings | 1,198,191 | 1,267,531 | 1,282,791 | 1,286,367 | |||
Time | 1,140,459 | 778,911 | 784,949 | 884,137 | |||
Total interest-bearing deposits | 4,930,114 | 4,573,903 | 4,712,330 | 4,626,084 | |||
Total deposits | 6,928,265 | 6,621,231 | 6,744,896 | 6,679,065 | |||
Short-term borrowings: | |||||||
Federal funds purchased and securities sold under agreements to repurchase | 141,432 | 145,192 | 162,649 | 194,727 | |||
Other short-term borrowings | 74,097 | 195,270 | 5,190 | 5,300 | |||
Total short-term borrowings | 215,529 | 340,462 | 167,839 | 200,027 | |||
Long-term debt and mandatorily redeemable securities | 46,555 | 47,587 | 48,459 | 71,251 | |||
Subordinated notes | 58,764 | 58,764 | 58,764 | 58,764 | |||
Accrued expenses and other liabilities | 166,537 | 143,082 | 98,734 | 117,718 | |||
Total liabilities | 7,415,650 | 7,211,126 | 7,118,692 | 7,126,825 | |||
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 2022, respectively | 436,538 | 436,538 | 436,538 | 436,538 | |||
Retained earnings | 694,862 | 671,541 | 646,600 | 603,787 | |||
Cost of common stock in treasury (3,543,388, 3,548,496, 3,555,267, and 3,466,162 shares at and | (119,642) | (119,743) | (119,876) | (114,209) | |||
Accumulated other comprehensive loss | (147,690) | (162,277) | (107,011) | (9,861) | |||
Total shareholders’ equity | 864,068 | 826,059 | 856,251 | 916,255 | |||
Noncontrolling interests | 59,698 | 60,301 | 54,416 | 53,209 | |||
Total equity | 923,766 | 886,360 | 910,667 | 969,464 | |||
Total liabilities and equity |
CONSOLIDATED STATEMENTS OF INCOME | |||||||||
(Unaudited - Dollars in thousands, except per share amounts) | |||||||||
Three Months Ended | Twelve Months Ended | ||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||
Interest income: | |||||||||
Loans and leases | |||||||||
Investment securities, taxable | 6,970 | 6,691 | 5,091 | 26,294 | 17,767 | ||||
Investment securities, tax-exempt | 419 | 339 | 133 | 1,049 | 601 | ||||
Other | 627 | 421 | 430 | 2,579 | 1,373 | ||||
Total interest income | 87,260 | 76,478 | 63,981 | 293,816 | 254,772 | ||||
Interest expense: | |||||||||
Deposits | 12,746 | 6,556 | 2,624 | 25,231 | 12,276 | ||||
Short-term borrowings | 1,070 | 380 | 25 | 1,497 | 115 | ||||
Subordinated notes | 972 | 904 | 819 | 3,550 | 3,267 | ||||
Long-term debt and mandatorily redeemable securities | 1,017 | (296) | 446 | 69 | 2,476 | ||||
Total interest expense | 15,805 | 7,544 | 3,914 | 30,347 | 18,134 | ||||
Net interest income | 71,455 | 68,934 | 60,067 | 263,469 | 236,638 | ||||
Provision (recovery of provision) for credit losses | 5,342 | 3,167 | (1,117) | 13,245 | (4,303) | ||||
Net interest income after provision for credit losses | 66,113 | 65,767 | 61,184 | 250,224 | 240,941 | ||||
Noninterest income: | |||||||||
Trust and wealth advisory | 5,608 | 5,498 | 5,949 | 23,107 | 23,782 | ||||
Service charges on deposit accounts | 3,172 | 3,240 | 2,867 | 12,146 | 10,589 | ||||
Debit card | 4,669 | 4,628 | 4,619 | 18,052 | 18,125 | ||||
Mortgage banking | 819 | 864 | 1,913 | 4,122 | 11,822 | ||||
Insurance commissions | 1,535 | 1,695 | 1,549 | 6,703 | 7,247 | ||||
Equipment rental | 2,556 | 2,761 | 3,817 | 12,274 | 16,647 | ||||
Losses on investment securities available-for-sale | (184) | — | — | (184) | (680) | ||||
Other | 5,105 | 3,321 | 3,114 | 15,042 | 12,560 | ||||
Total noninterest income | 23,280 | 22,007 | 23,828 | 91,262 | 100,092 | ||||
Noninterest expense: | |||||||||
Salaries and employee benefits | 27,695 | 26,386 | 28,128 | 105,110 | 105,808 | ||||
Net occupancy | 2,811 | 2,582 | 2,624 | 10,728 | 10,524 | ||||
Furniture and equipment | 1,397 | 1,372 | 1,589 | 5,448 | 5,977 | ||||
Data processing | 5,963 | 5,802 | 5,026 | 22,375 | 19,877 | ||||
Depreciation — leased equipment | 2,111 | 2,233 | 3,132 | 10,023 | 13,694 | ||||
Professional fees | 2,039 | 1,539 | 3,102 | 7,280 | 8,676 | ||||
943 | 939 | 844 | 3,625 | 2,677 | |||||
Business development and marketing | 1,471 | 1,415 | 1,200 | 5,823 | 8,013 | ||||
Other | 3,947 | 3,063 | 3,101 | 14,287 | 10,902 | ||||
Total noninterest expense | 48,377 | 45,331 | 48,746 | 184,699 | 186,148 | ||||
Income before income taxes | 41,016 | 42,443 | 36,266 | 156,787 | 154,885 | ||||
Income tax expense | 9,960 | 9,698 | 8,531 | 36,255 | 36,328 | ||||
Net income | 31,056 | 32,745 | 27,735 | 120,532 | 118,557 | ||||
Net loss (income) attributable to noncontrolling interests | 12 | (8) | (12) | (23) | (23) | ||||
Net income available to common shareholders | |||||||||
Per common share: | |||||||||
Basic net income per common share | |||||||||
Diluted net income per common share | |||||||||
Cash dividends | |||||||||
Basic weighted average common shares outstanding | 24,658,294 | 24,656,736 | 24,775,288 | 24,687,324 | 25,038,127 | ||||
Diluted weighted average common shares outstanding | 24,658,294 | 24,656,736 | 24,775,288 | 24,687,324 | 25,038,127 |
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY
INTEREST RATES AND INTEREST DIFFERENTIAL
(Unaudited - Dollars in thousands)
Three Months Ended | |||||||||||||||||||
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 | 1.59 % | 1.46 % | 1.20 % | ||||||||||||||||
Tax-exempt(1) | 52,633 | 525 | 3.96 % | 47,841 | 426 | 3.53 % | 28,996 | 163 | 2.23 % | ||||||||||
Mortgages held for sale | 2,834 | 40 | 5.60 % | 4,272 | 58 | 5.39 % | 28,693 | 188 | 2.60 % | ||||||||||
Loans and leases, net of unearned discount(1) | 5,840,593 | 79,313 | 5.39 % | 5,627,718 | 69,064 | 4.87 % | 5,311,964 | 58,218 | 4.35 % | ||||||||||
Other investments | 69,142 | 627 | 3.60 % | 119,624 | 421 | 1.40 % | 659,954 | 430 | 0.26 % | ||||||||||
Total earning assets(1) | 7,707,769 | 87,475 | 4.50 % | 7,615,593 | 76,660 | 3.99 % | 7,715,838 | 64,090 | 3.30 % | ||||||||||
Cash and due from banks | 76,843 | 74,329 | 80,754 | ||||||||||||||||
Allowance for loan and lease losses | (137,350) | (133,989) | (134,217) | ||||||||||||||||
Other assets | 523,833 | 463,171 | 448,680 | ||||||||||||||||
Total assets | |||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
Interest-bearing deposits | 1.07 % | 0.56 % | 0.22 % | ||||||||||||||||
Short-term borrowings: | |||||||||||||||||||
Securties sold under agreements to repurchase | 137,248 | 18 | 0.05 % | 159,345 | 21 | 0.05 % | 194,678 | 24 | 0.05 % | ||||||||||
Other short-term borrowings | 125,078 | 1,052 | 3.34 % | 57,609 | 359 | 2.47 % | 5,474 | 1 | 0.07 % | ||||||||||
Subordinated notes | 58,764 | 972 | 6.56 % | 58,764 | 904 | 6.10 % | 58,764 | 819 | 5.53 % | ||||||||||
Long-term debt and mandatorily redeemable securities | 47,053 | 1,017 | 8.58 % | 48,399 | (296) | (2.43) % | 71,604 | 446 | 2.47 % | ||||||||||
Total interest-bearing liabilities | 5,086,446 | 15,805 | 1.23 % | 4,958,209 | 7,544 | 0.60 % | 4,959,322 | 3,914 | 0.31 % | ||||||||||
Noninterest-bearing deposits | 2,040,162 | 2,039,147 | 2,071,773 | ||||||||||||||||
Other liabilities | 137,874 | 90,336 | 113,897 | ||||||||||||||||
Shareholders’ equity | 846,449 | 873,209 | 918,950 | ||||||||||||||||
Noncontrolling interests | 60,164 | 58,203 | 47,113 | ||||||||||||||||
Total liabilities and equity | |||||||||||||||||||
Less: Fully tax-equivalent adjustments | (215) | (182) | (109) | ||||||||||||||||
Net interest income/margin (GAAP-derived)(1) | 3.68 % | 3.59 % | 3.09 % | ||||||||||||||||
Fully tax-equivalent adjustments | 215 | 182 | 109 | ||||||||||||||||
Net interest income/ margin - FTE(1) | 3.69 % | 3.60 % | 3.09 % |
(1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio.
DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
INTEREST RATES AND INTEREST DIFFERENTIAL | ||||||||||||
(Unaudited - Dollars in thousands) | ||||||||||||
Twelve Months Ended | ||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||
ASSETS | ||||||||||||
Investment securities available-for-sale: | ||||||||||||
Taxable | 1.46 % | 1.26 % | ||||||||||
Tax-exempt(1) | 40,310 | 1,311 | 3.25 % | 32,583 | 741 | 2.27 % | ||||||
Mortgages held for sale | 5,178 | 217 | 4.19 % | 17,026 | 448 | 2.63 % | ||||||
Loans and leases, net of unearned discount(1) | 5,566,701 | 264,043 | 4.74 % | 5,437,817 | 234,902 | 4.32 % | ||||||
Other investments | 243,938 | 2,579 | 1.06 % | 440,416 | 1,373 | 0.31 % | ||||||
Total earning assets(1) | 7,661,168 | 294,444 | 3.84 % | 7,338,639 | 255,231 | 3.48 % | ||||||
Cash and due from banks | 75,836 | 77,275 | ||||||||||
Allowance for loan and lease losses | (133,028) | (139,141) | ||||||||||
Other assets | 469,135 | 454,374 | ||||||||||
Total assets | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Interest-bearing deposits | 0.54 % | 0.28 % | ||||||||||
Short-term borrowings: | ||||||||||||
Securities sold under agreements to repurchase | 166,254 | 85 | 0.05 % | 180,610 | 112 | 0.06 % | ||||||
Other short-term borrowings | 48,716 | 1,412 | 2.90 % | 6,119 | 3 | 0.05 % | ||||||
Subordinated notes | 58,764 | 3,550 | 6.04 % | 58,764 | 3,267 | 5.56 % | ||||||
Long-term debt and mandatorily redeemable securities | 54,940 | 69 | 0.13 % | 78,845 | 2,476 | 3.14 % | ||||||
Total interest-bearing liabilities | 5,002,168 | 30,347 | 0.61 % | 4,784,697 | 18,134 | 0.38 % | ||||||
Noninterest-bearing deposits | 2,037,882 | 1,882,168 | ||||||||||
Other liabilities | 103,740 | 112,291 | ||||||||||
Shareholders’ equity | 872,721 | 906,951 | ||||||||||
Noncontrolling interests | 56,600 | 45,040 | ||||||||||
Total liabilities and equity | ||||||||||||
Less: Fully tax-equivalent adjustments | (628) | (459) | ||||||||||
Net interest income/margin (GAAP-derived)(1) | 3.44 % | 3.22 % | ||||||||||
Fully tax-equivalent adjustments | 628 | 459 | ||||||||||
Net interest income/margin - FTE(1) | 3.45 % | 3.23 % |
(1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||
(Unaudited - Dollars in thousands, except per share data) | |||||||
Three Months Ended | Twelve Months Ended | ||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||
Calculation of Net Interest Margin | |||||||
(A) | Interest income (GAAP) | ||||||
Fully tax-equivalent adjustments: | |||||||
(B) | - Loans and leases | 109 | 95 | 79 | 366 | 319 | |
(C) | - Tax-exempt investment securities | 106 | 87 | 30 | 262 | 140 | |
(D) | Interest income - FTE (A+B+C) | 87,475 | 76,660 | 64,090 | 294,444 | 255,231 | |
(E) | Interest expense (GAAP) | 15,805 | 7,544 | 3,914 | 30,347 | 18,134 | |
(F) | Net interest income (GAAP) (A–E) | 71,455 | 68,934 | 60,067 | 263,469 | 236,638 | |
(G) | Net interest income - FTE (D–E) | 71,670 | 69,116 | 60,176 | 264,097 | 237,097 | |
(H) | Annualization factor | 3.967 | 3.967 | 3.967 | 1.000 | 1.000 | |
(I) | Total earning assets | ||||||
Net interest margin (GAAP-derived) (F*H)/I | 3.68 % | 3.59 % | 3.09 % | 3.44 % | 3.22 % | ||
Net interest margin - FTE (G*H)/I | 3.69 % | 3.60 % | 3.09 % | 3.45 % | 3.23 % | ||
Calculation of Efficiency Ratio | |||||||
(F) | Net interest income (GAAP) | ||||||
(G) | Net interest income - FTE | 71,670 | 69,116 | 60,176 | 264,097 | 237,097 | |
(J) | Plus: noninterest income (GAAP) | 23,280 | 22,007 | 23,828 | 91,262 | 100,092 | |
(K) | Less: gains/losses on investment securities and partnership investments | (2,216) | (418) | (285) | (3,714) | (1,020) | |
(L) | Less: depreciation - leased equipment | (2,111) | (2,233) | (3,132) | (10,023) | (13,694) | |
(M) | Total net revenue (GAAP) (F+J) | 94,735 | 90,941 | 83,895 | 354,731 | 336,730 | |
(N) | Total net revenue - adjusted (G+J–K–L) | 90,623 | 88,472 | 80,587 | 341,622 | 322,475 | |
(O) | Noninterest expense (GAAP) | 48,377 | 45,331 | 48,746 | 184,699 | 186,148 | |
(L) | Less: depreciation - leased equipment | (2,111) | (2,233) | (3,132) | (10,023) | (13,694) | |
(P) | Noninterest expense - adjusted (O–L) | 46,266 | 43,098 | 45,614 | 174,676 | 172,454 | |
Efficiency ratio (GAAP-derived) (O/M) | 51.07 % | 49.85 % | 58.10 % | 52.07 % | 55.28 % | ||
Efficiency ratio - adjusted (P/N) | 51.05 % | 48.71 % | 56.60 % | 51.13 % | 53.48 % | ||
End of Period | |||||||
2022 | 2022 | 2021 | |||||
Calculation of Tangible Common Equity-to-Tangible Assets Ratio | |||||||
(Q) | Total common shareholders’ equity (GAAP) | ||||||
(R) | Less: goodwill and intangible assets | (83,907) | (83,911) | (83,926) | |||
(S) | Total tangible common shareholders’ equity (Q–R) | ||||||
(T) | Total assets (GAAP) | 8,339,416 | 8,097,486 | 8,096,289 | |||
(R) | Less: goodwill and intangible assets | (83,907) | (83,911) | (83,926) | |||
(U) | Total tangible assets (T–R) | ||||||
Common equity-to-assets ratio (GAAP-derived) (Q/T) | 10.36 % | 10.20 % | 11.32 % | ||||
Tangible common equity-to-tangible assets ratio (S/U) | 9.45 % | 9.26 % | 10.39 % | ||||
Calculation of Tangible Book Value per Common Share | |||||||
(Q) | Total common shareholders’ equity (GAAP) | ||||||
(V) | Actual common shares outstanding | 24,662,286 | 24,657,178 | 24,739,512 | |||
Book value per common share (GAAP-derived) (Q/V)*1000 | |||||||
Tangible common book value per share (S/V)*1000 | |||||||
The NASDAQ Stock Market National Market Symbol: “SRCE” (CUSIP #336901 10 3)
Please contact us at shareholder@1stsource.com
Contact Details
+1 574-235-2000
Copyright (c) 2023 TheNewswire - All rights reserved.
Copyright (c) 2023 TheNewswire - All rights reserved., source