Le Lézard
Classified in: Business, Covid-19 virus
Subject: EARNINGS

1st Source Corporation Reports Record Annual Earnings, Cash Dividend Declared, History of Increased Dividends Continues


1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported record net income of $118.53 million for 2021, an increase of 45.55% compared to $81.44 million earned in 2020. Fourth quarter net income was $27.72 million, an increase of 4.76% compared to $26.46 million earned in the fourth quarter of 2020. Diluted net income per common share for the year was a record $4.70, up 48.26% from the $3.17 earned a year earlier. Diluted net income per common share for the fourth quarter was $1.11, up 7.77% from the $1.03 earned in the fourth quarter of the previous year.

At its January 2022 meeting, the Board of Directors approved a cash dividend of $0.31 per common share, up 6.90% from the $0.29 per common share declared a year ago. The cash dividend is payable to shareholders of record on February 8, 2022 and will be paid on February 16, 2022.

Christopher J. Murphy III, Chairman and Chief Executive Officer, commented, "With the Paycheck Protection Program (PPP) fee income and the ability to relieve our allowance for loan and lease losses, we are pleased to report record net income for the year. In many ways this averages out the performance of the last two years since 2020's income was down compared to prior years as we anticipated more losses from the impact of COVID-19. This was also the 34th consecutive year of dividend growth. We welcome the positive impact provided by the PPP, the Federal Reserve's extremely accommodative monetary policy and other government fiscal stimulus programs in response to the pandemic. They have collectively led to a stronger economic recovery than we anticipated for us, our clients and the communities we serve. This has resulted in sustained credit quality improvements during 2021 and a thoughtful and measured reduction to our allowance for loan and lease losses. In addition, our clients continued to receive PPP loan forgiveness during 2021. Total PPP loans forgiven in 2021 were $543.59 million which has provided $16.84 million in fee income. Furthermore, liquidity remains elevated and we are focused on its deployment through growing our loan and lease portfolio by deepening existing client relationships as well as developing new ones.

"Clearly, this past year proved to be difficult as we continued to deal with the challenges of the COVID-19 pandemic. We've worked hard to keep our 1st Source family healthy while providing our clients with the exceptional quality service expected from us. In December, we awarded 10 shares of 1st Source stock plus a $250 cash bonus to those colleagues who either had their first shot of the vaccine and were scheduled for their second or were fully vaccinated. We did this to recognize the Bank's collective effort to mitigate both the personal risk and our community's risk of infection.

"I am pleased to report that during the fourth quarter, the U.S. Small Business Administration (SBA), Indiana District, recognized 1st Source Bank with a Gold Level Award in the Community Lender category. The award honors 1st Source Bank for delivering the greatest number of SBA loans in Indiana in 2021 among Community Banks with less than $10 billion in assets. We have earned this award for nine years in a row and are proud to support our clients as they strive to start, grow, and expand their community-based businesses during an unprecedented time.

"Most importantly, I'm pleased to share that two board members were recently named to Savoy magazine's 2021 Most Influential Black Corporate Directors list. Savoy magazine, the leading African American business, culture, and lifestyle publication, said the Most Influential Black Corporate Directors list is a prestigious acknowledgment of African American executives, influencers, and achievers active on the boards of the world's leading corporations and organizations. Melody Birmingham, Senior Vice President and Chief Administrative Officer at Duke Energy, has served on the 1st Source Corporation Board of Directors since 2018, while Tracy Graham, Managing Principal of Graham Allen Partners, LLC and Chief Executive Officer of Aunalytics, Inc., has served on the 1st Source Corporation board from 2012-2014, and again in 2021. He has served on the Board of Directors for 1st Source Bank since 2012. 1st Source has been proud of its board's diversity and has always benefited from the advice, perspectives, and skills of its directors of many different backgrounds. We thank Savoy and join them in recognizing these two as energized, smart, and insightful members of our board of directors. 1st Source Corporation is stronger and more client-centric because of them," Mr. Murphy concluded.

FULL YEAR AND FOURTH QUARTER 2021 FINANCIAL RESULTS

Loans

Annual average loans and leases of $5.44 billion increased $53.41 million, up 1.05% net of PPP loans from the full year 2020. Quarterly average loans and leases of $5.31 billion increased $162.66 million, up 3.23% net of PPP loans in the fourth quarter of 2021 from the year ago quarter and have increased $35.77 million net of PPP loans from the third quarter. PPP forgiveness and customer payments totaled $102.11 million in the fourth quarter of 2021 and $543.59 million for the full year of 2021 offset by PPP originations of $261.46 million during 2021. Loan runoff is primarily from SBA forgiveness of PPP loans offset by growth in the aircraft, solar and auto and light truck portfolios when compared to 2020.

Deposits

Annual average deposits for 2021 were $6.34 billion, an increase of $605.93 million, up 10.56% from 2020. Quarterly average deposits of $6.70 billion grew $730.80 million, up 12.24% for the quarter ended December 31, 2021 compared to the year ago quarter and have increased $298.73 million, up 4.67% compared to the third quarter. Deposit growth is primarily from PPP loan fundings and increased consumer deposit levels compared to 2020 and increased consumer and business deposit levels as well as seasonal public fund activity compared to the previous quarter.

Net Interest Income and Net Interest Margin

For the twelve months of 2021, tax-equivalent net interest income was $237.10 million, an increase of $10.73 million, up 4.74% compared to the full year 2020. Fourth quarter 2021 tax-equivalent net interest income of $60.18 million decreased $2.06 million, or 3.31% from the fourth quarter a year ago and decreased $2.16 million, or 3.46% from the third quarter which was mainly the result of fewer PPP loan fees recognized during the quarter.

Net interest margin for the year ending December 31, 2021 was 3.22%, a decrease of 16 basis points from the 3.38% for the year ending December 31, 2020. Net interest margin on a tax-equivalent basis for the year ending December 31, 2021 was 3.23%, a decrease of 16 basis points from the 3.39% for the year ending December 31, 2020. Fees for PPP loans had a positive impact on the net interest margin of 15 basis points for the year compared to a positive three basis points impact a year ago. We recognized $16.84 million in PPP loan fees during 2021 compared to $12.06 million during 2020. The margin continues to experience pressure from the low interest rate environment and excess liquidity.

Fourth quarter 2021 net interest margin was 3.09%, a reduction of 45 basis points from the 3.54% for the same period in 2020 and a decrease of 24 basis points from the prior quarter. Fourth quarter 2021 net interest margin on a fully tax-equivalent basis was 3.09%, a decrease of 46 basis points from the 3.55% for the same period in 2020 and a reduction of 25 basis points from the 3.34% in the prior quarter. PPP loans had a positive impact on the net interest margin of 16 basis points for the quarter compared to a positive 27 basis points impact during the fourth quarter of 2020. We recognized $3.58 million in PPP loan fees in fourth quarter 2021 versus $7.84 million in fourth quarter 2020.

The margin continues to experience pressure from the low interest rate environment and excess liquidity. We do not expect significant impact from PPP fees in 2022 as PPP loans continue to be forgiven. As of December 31, 2021, $75.79 million of PPP loans originated remained outstanding with $2.71 million in unearned fees.

Noninterest Income

Noninterest income for the twelve months ended December 31, 2021 was $100.09 million, down $3.80 million or 3.65% compared to the twelve months ended December 31, 2020. Fourth quarter 2021 noninterest income of $23.83 million decreased $2.16 million, or 8.30% from the fourth quarter a year ago and decreased $1.67 million or 6.55% from the third quarter.

Noninterest income during the twelve months ended December 31, 2021 was lower compared to a year ago mainly from reduced equipment rental income due to a decrease in the size of the average equipment rental portfolio as demand for operating leases declined and a decrease in mortgage banking income driven by lower sales volume. These decreases were offset by increased debit card income as transaction levels grew, higher trust and wealth advisory fees as market values improved on assets under management and a rise in service charges on deposit accounts. Additionally, we recognized $0.81 million in impairment recoveries on our mortgage servicing rights during 2021.

The decrease in noninterest income from the third quarter was mainly due to a reduction in mortgage banking income driven by a lower volume of loan sales and a $0.22 million impairment recovery on mortgage servicing rights recognized during the third quarter, decreased insurance commissions and lower partnership investment gains due to a $0.24 million write-down on one investment.

Noninterest Expense

Noninterest expense for the twelve months ended December 31, 2021 was $186.15 million, a decrease of $1.22 million, or 0.65% compared to the same period a year ago. Fourth quarter 2021 noninterest expense of $48.75 million decreased $0.22 million, or 0.45% from the fourth quarter a year ago and increased $0.68 million or 1.42% from the prior quarter.

The decrease in noninterest expense for 2021 from 2020 was primarily due to lower leased equipment depreciation resulting from a reduction in the average equipment rental portfolio, reduced collection and repossession expenses due to lower general expenses and fewer negative valuation adjustments on repossessed assets, a lower valuation provision for interest rate swaps with customers, and a reduction in the provision for unfunded loan commitments.

The increase in noninterest expense from the third quarter was mainly due to higher salaries and employee benefits as a result of increased group insurance claims and increased incentive awards including a one-time special reward of $0.64 million announced during the fourth quarter for our colleagues who were vaccinated against COVID-19, higher legal fees, increased professional consulting fees and a rise in insurance expense due to a one-time $0.38 million decrease recognized during the third quarter. These increases were offset by a $3.00 million charitable contribution made during the third quarter that was not present in the fourth quarter.

Credit

The allowance for loan and lease losses as of December 31, 2021 was 2.38% of total loans and leases compared to 2.50% at September 30, 2021 and 2.56% at December 31, 2020. The allowance calculation includes PPP loans which are guaranteed by the SBA. Excluding those loans from the calculation results in an allowance of 2.42% at December 31, 2021 compared to 2.58% at September 30, 2021 and 2.73% at December 31, 2020.

Net charge-offs that have been recorded for the full year of 2021 were $8.86 million compared to net charge-offs of $9.19 million in 2020. This resulted in a charge-off ratio of 0.16% for 2021 compared to 0.17% for 2020. Net charge-offs of $5.15 million were recorded for the fourth quarter of 2021 compared with net charge-offs of $3.72 million in the same quarter a year ago and $0.04 million of net charge-offs in the previous quarter. The majority of charge-offs in 2021 were related to the bus division of the auto and light truck portfolio which continued to be impacted by the lingering effects of the pandemic on events and tourism.

The provision for credit losses was a recovery of $4.30 million for the twelve months ended December 31, 2021 and a recovery of $1.12 million for the fourth quarter of 2021, a decrease of $40.30 million and $6.09 million, respectively, compared with the same periods in 2020. The ratio of nonperforming assets to loans and leases was 0.77% as of December 31, 2021, compared to 0.84% on September 30, 2021 and 1.16% on December 31, 2020. Excluding PPP loans, the ratio of nonperforming assets to loans and leases was 0.78% at December 31, 2021 compared to 0.87% at September 30, 2021 and 1.24% at December 31, 2020. Nonperforming assets saw improvement in the fourth quarter as a result of lower nonaccrual loans.

Capital

As of December 31, 2021, the common equity-to-assets ratio was 11.32%, compared to 11.44% at September 30, 2021 and 12.12% a year ago. The tangible common equity-to-tangible assets ratio was 10.39% at December 31, 2021 compared to 10.50% at September 30, 2021 and 11.10% a year earlier. The Common Equity Tier 1 ratio, calculated under banking regulatory guidelines, was 13.72% at December 31, 2021 compared to 13.65% at September 30, 2021 and 13.06% a year ago. During the fourth quarter of 2021, 63,786 shares were repurchased for treasury reducing common shareholders' equity by $3.07 million.

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 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 79 banking centers, 18 1st Source Bank Specialty Finance Group locations nationwide, nine Wealth Advisory Services locations and 10 1st Source Insurance offices.

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 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.

NON-GAAP FINANCIAL MEASURES

The accounting and reporting policies of 1st Source conform to generally accepted accounting principles ("GAAP") in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures are used by management to evaluate and measure the Company's performance. Although these non-GAAP financial measures are frequently used by investors to evaluate a financial institution, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. These include taxable-equivalent net interest income (including its individual components), net interest margin (including its individual components), the efficiency ratio, tangible common equity-to-tangible assets ratio and tangible book value per common share. Management believes that these measures provide users of the Company's financial information a more meaningful view of the performance of the interest-earning assets and interest-bearing liabilities and of the Company's operating efficiency. Other financial holding companies may define or calculate these measures differently.

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 one dollar of revenue. Securities gains or losses and lease depreciation are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity-to-tangible assets ratio and tangible book value per common share as useful measurements of the Company's equity.

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.

Category: Earnings

1st SOURCE CORPORATION

4th QUARTER 2021 FINANCIAL HIGHLIGHTS

(Unaudited - Dollars in thousands, except per share data)

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

September 30,

December 31,

 

December 31,

December 31,

 

2021

2021

2020

 

2021

2020

AVERAGE BALANCES

 

 

 

 

 

 

Assets

$

8,111,055

 

$

7,796,763

 

$

7,402,431

 

 

$

7,731,147

 

$

7,120,009

 

Earning assets

 

7,715,838

 

 

7,404,252

 

 

6,981,460

 

 

 

7,338,639

 

 

6,684,246

 

Investments

 

1,715,227

 

 

1,482,016

 

 

1,098,072

 

 

 

1,443,380

 

 

1,058,060

 

Loans and leases

 

5,311,964

 

 

5,427,080

 

 

5,517,707

 

 

 

5,437,817

 

 

5,463,436

 

Deposits

 

6,700,575

 

 

6,401,844

 

 

5,969,776

 

 

 

6,342,527

 

 

5,736,602

 

Interest bearing liabilities

 

4,959,322

 

 

4,811,516

 

 

4,635,661

 

 

 

4,784,697

 

 

4,546,548

 

Common shareholders' equity

 

918,950

 

 

915,552

 

 

884,530

 

 

 

906,951

 

 

865,278

 

Total equity

 

966,063

 

 

960,235

 

 

921,913

 

 

 

951,991

 

 

896,956

 

INCOME STATEMENT DATA

 

 

 

 

 

 

Net interest income

$

60,067

 

$

62,224

 

$

62,107

 

 

$

236,638

 

$

225,820

 

Net interest income - FTE(1)

 

60,176

 

 

62,335

 

 

62,234

 

 

 

237,097

 

 

226,363

 

(Recovery of) provision for credit losses

 

(1,117

)

 

(2,559

)

 

4,970

 

 

 

(4,303

)

 

36,001

 

Noninterest income

 

23,828

 

 

25,497

 

 

25,985

 

 

 

100,092

 

 

103,889

 

Noninterest expense

 

48,746

 

 

48,064

 

 

48,964

 

 

 

186,148

 

 

187,367

 

Net income

 

27,735

 

 

32,481

 

 

26,463

 

 

 

118,557

 

 

81,461

 

Net income available to common shareholders

 

27,723

 

 

32,483

 

 

26,464

 

 

 

118,534

 

 

81,437

 

PER SHARE DATA

 

 

 

 

 

 

Basic net income per common share

$

1.11

 

$

1.29

 

$

1.03

 

 

$

4.70

 

$

3.17

 

Diluted net income per common share

 

1.11

 

 

1.29

 

 

1.03

 

 

 

4.70

 

 

3.17

 

Common cash dividends declared

 

0.31

 

 

0.31

 

 

0.28

 

 

 

1.21

 

 

1.13

 

Book value per common share(2)

 

37.04

 

 

36.75

 

 

34.93

 

 

 

37.04

 

 

34.93

 

Tangible book value per common share(1)

 

33.64

 

 

33.37

 

 

31.62

 

 

 

33.64

 

 

31.62

 

Market value - High

 

51.20

 

 

48.63

 

 

41.10

 

 

 

51.20

 

 

52.16

 

Market value - Low

 

45.91

 

 

41.19

 

 

30.33

 

 

 

38.73

 

 

26.07

 

Basic weighted average common shares outstanding

 

24,775,288

 

 

24,919,956

 

 

25,492,140

 

 

 

25,038,127

 

 

25,527,154

 

Diluted weighted average common shares outstanding

 

24,775,288

 

 

24,919,956

 

 

25,492,140

 

 

 

25,038,127

 

 

25,527,154

 

KEY RATIOS

 

 

 

 

 

 

Return on average assets

 

1.36

%

 

1.65

%

 

1.42

%

 

 

1.53

%

 

1.14

%

Return on average common shareholders' equity

 

11.97

 

 

14.08

 

 

11.90

 

 

 

13.07

 

 

9.41

 

Average common shareholders' equity to average assets

 

11.33

 

 

11.74

 

 

11.95

 

 

 

11.73

 

 

12.15

 

End of period tangible common equity to tangible assets(1)

 

10.39

 

 

10.50

 

 

11.10

 

 

 

10.39

 

 

11.10

 

Risk-based capital - Common Equity Tier 1(3)

 

13.72

 

 

13.65

 

 

13.06

 

 

 

13.72

 

 

13.06

 

Risk-based capital - Tier 1(3)

 

15.50

 

 

15.33

 

 

14.73

 

 

 

15.50

 

 

14.73

 

Risk-based capital - Total(3)

 

16.76

 

 

16.59

 

 

15.99

 

 

 

16.76

 

 

15.99

 

Net interest margin

 

3.09

 

 

3.33

 

 

3.54

 

 

 

3.22

 

 

3.38

 

Net interest margin - FTE(1)

 

3.09

 

 

3.34

 

 

3.55

 

 

 

3.23

 

 

3.39

 

Efficiency ratio: expense to revenue

 

58.10

 

 

54.79

 

 

55.58

 

 

 

55.28

 

 

56.83

 

Efficiency ratio: expense to revenue - adjusted(1)

 

56.60

 

 

53.38

 

 

53.32

 

 

 

53.48

 

 

54.20

 

Net charge offs to average loans and leases

 

0.38

 

 

0.00

 

 

0.27

 

 

 

0.16

 

 

0.17

 

Loan and lease loss allowance to loans and leases

 

2.38

 

 

2.50

 

 

2.56

 

 

 

2.38

 

 

2.56

 

Nonperforming assets to loans and leases

 

0.77

 

 

0.84

 

 

1.16

 

 

 

0.77

 

 

1.16

 

 

 

 

 

 

 

 

 

December 31,

September 30,

June 30,

 

March 31,

December 31,

 

2021

2021

2021

 

2021

2020

END OF PERIOD BALANCES

 

 

 

 

 

 

Assets

$

8,096,289

 

$

7,964,092

 

$

7,718,694

 

 

$

7,511,931

 

$

7,316,411

 

Loans and leases

 

5,346,214

 

 

5,358,797

 

 

5,483,045

 

 

 

5,523,085

 

 

5,489,301

 

Deposits

 

6,679,065

 

 

6,522,505

 

 

6,345,410

 

 

 

6,131,341

 

 

5,946,028

 

Allowance for loan and lease losses

 

127,492

 

 

133,755

 

 

136,361

 

 

 

139,550

 

 

140,654

 

Goodwill and intangible assets

 

83,926

 

 

83,931

 

 

83,937

 

 

 

83,942

 

 

83,948

 

Common shareholders' equity

 

916,255

 

 

911,333

 

 

901,226

 

 

 

891,295

 

 

886,845

 

Total equity

 

969,464

 

 

956,397

 

 

945,457

 

 

 

935,759

 

 

930,670

 

ASSET QUALITY

 

 

 

 

 

 

Loans and leases past due 90 days or more

$

249

 

$

96

 

$

44

 

 

$

66

 

$

115

 

Nonaccrual loans and leases

 

38,706

 

 

43,166

 

 

55,864

 

 

 

58,513

 

 

60,388

 

Other real estate

 

?

 

 

?

 

 

?

 

 

 

369

 

 

359

 

Repossessions

 

861

 

 

690

 

 

1,213

 

 

 

2,214

 

 

1,976

 

Equipment owned under operating leases

 

1,518

 

 

1,598

 

 

1,728

 

 

 

1,647

 

 

1,695

 

Total nonperforming assets

$

41,334

 

$

45,550

 

$

58,849

 

 

$

62,809

 

$

64,533

 

(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.

1st SOURCE CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited - Dollars in thousands)

 

December 31,

 

September 30,

 

June 30,

 

December 31,

 

2021

 

2021

 

2021

 

2020

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

$

54,420

 

 

$

77,740

 

 

$

69,101

 

 

$

74,186

 

Federal funds sold and interest bearing deposits with other banks

 

470,767

 

 

 

559,542

 

 

 

400,346

 

 

 

168,861

 

Investment securities available-for-sale

 

1,863,041

 

 

 

1,583,240

 

 

 

1,413,022

 

 

 

1,197,467

 

Other investments

 

27,189

 

 

 

27,189

 

 

 

27,429

 

 

 

27,429

 

Mortgages held for sale

 

13,284

 

 

 

34,594

 

 

 

6,453

 

 

 

12,885

 

Loans and leases, net of unearned discount:

 

 

 

 

 

 

 

Commercial and agricultural

 

918,712

 

 

 

1,005,849

 

 

 

1,125,965

 

 

 

1,186,118

 

Solar

 

348,302

 

 

 

303,995

 

 

 

305,250

 

 

 

292,604

 

Auto and light truck

 

603,775

 

 

 

605,258

 

 

 

595,326

 

 

 

542,369

 

Medium and heavy duty truck

 

259,740

 

 

 

248,604

 

 

 

256,169

 

 

 

279,172

 

Aircraft

 

898,401

 

 

 

900,077

 

 

 

883,559

 

 

 

861,460

 

Construction equipment

 

754,273

 

 

 

729,412

 

 

 

729,055

 

 

 

714,888

 

Commercial real estate

 

929,341

 

 

 

939,131

 

 

 

966,171

 

 

 

969,864

 

Residential real estate and home equity

 

500,590

 

 

 

492,893

 

 

 

492,552

 

 

 

511,379

 

Consumer

 

133,080

 

 

 

133,578

 

 

 

128,998

 

 

 

131,447

 

Total loans and leases

 

5,346,214

 

 

 

5,358,797

 

 

 

5,483,045

 

 

 

5,489,301

 

Allowance for loan and lease losses

 

(127,492

)

 

 

(133,755

)

 

 

(136,361

)

 

 

(140,654

)

Net loans and leases

 

5,218,722

 

 

 

5,225,042

 

 

 

5,346,684

 

 

 

5,348,647

 

Equipment owned under operating leases, net

 

48,433

 

 

 

51,478

 

 

 

56,011

 

 

 

65,040

 

Net premises and equipment

 

47,038

 

 

 

46,748

 

 

 

47,617

 

 

 

49,373

 

Goodwill and intangible assets

 

83,926

 

 

 

83,931

 

 

 

83,937

 

 

 

83,948

 

Accrued income and other assets

 

269,469

 

 

 

274,588

 

 

 

268,094

 

 

 

288,575

 

Total assets

$

8,096,289

 

 

$

7,964,092

 

 

$

7,718,694

 

 

$

7,316,411

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Noninterest bearing demand

$

2,052,981

 

 

$

2,012,389

 

 

$

1,851,932

 

 

$

1,636,684

 

Interest-bearing deposits:

 

 

 

 

 

 

 

Interest-bearing demand

 

2,455,580

 

 

 

2,358,512

 

 

 

2,318,210

 

 

 

2,059,139

 

Savings

 

1,286,367

 

 

 

1,214,088

 

 

 

1,182,643

 

 

 

1,082,848

 

Time

 

884,137

 

 

 

937,516

 

 

 

992,625

 

 

 

1,167,357

 

Total interest-bearing deposits

 

4,626,084

 

 

 

4,510,116

 

 

 

4,493,478

 

 

 

4,309,344

 

Total deposits

 

6,679,065

 

 

 

6,522,505

 

 

 

6,345,410

 

 

 

5,946,028

 

Short-term borrowings:

 

 

 

 

 

 

 

Federal funds purchased and securities sold under agreements to repurchase

 

194,727

 

 

 

210,275

 

 

 

167,097

 

 

 

143,564

 

Other short-term borrowings

 

5,300

 

 

 

5,390

 

 

 

5,247

 

 

 

7,077

 

Total short-term borrowings

 

200,027

 

 

 

215,665

 

 

 

172,344

 

 

 

150,641

 

Long-term debt and mandatorily redeemable securities

 

71,251

 

 

 

81,301

 

 

 

81,330

 

 

 

81,864

 

Subordinated notes

 

58,764

 

 

 

58,764

 

 

 

58,764

 

 

 

58,764

 

Accrued expenses and other liabilities

 

117,718

 

 

 

129,460

 

 

 

115,389

 

 

 

148,444

 

Total liabilities

 

7,126,825

 

 

 

7,007,695

 

 

 

6,773,237

 

 

 

6,385,741

 

 

 

 

 

 

 

 

 

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 December 31,

2021, September 30, 2021, June 30, 2021, and December 31, 2020,

respectively

 

436,538

 

 

 

436,538

 

 

 

436,538

 

 

 

436,538

 

Retained earnings

 

603,787

 

 

 

583,631

 

 

 

558,795

 

 

 

514,176

 

Cost of common stock in treasury (3,466,162, 3,408,141, 3,204,947, and

2,816,557 shares at December 31, 2021, September 30, 2021, June 30, 2021,

and December 31, 2020, respectively)

 

(114,209

)

 

 

(111,253

)

 

 

(101,711

)

 

 

(82,240

)

Accumulated other comprehensive (loss) income

 

(9,861

)

 

 

2,417

 

 

 

7,604

 

 

 

18,371

 

Total shareholders' equity

 

916,255

 

 

 

911,333

 

 

 

901,226

 

 

 

886,845

 

Noncontrolling interests

 

53,209

 

 

 

45,064

 

 

 

44,231

 

 

 

43,825

 

Total equity

 

969,464

 

 

 

956,397

 

 

 

945,457

 

 

 

930,670

Total liabilities and equity

$

8,096,289

$

7,964,092

 

 

$

7,718,694

 

 

$

7,316,411

1st SOURCE CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited - Dollars in thousands, except per share amounts)

 

Three Months Ended

 

Twelve Months Ended

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

 

2021

 

2021

 

2020

 

2021

 

2020

Interest income:

 

 

 

 

 

 

 

 

 

Loans and leases

$

58,327

 

 

$

61,696

 

 

$

64,113

 

$

235,031

 

 

$

242,772

 

Investment securities, taxable

 

5,091

 

 

 

4,533

 

 

 

3,940

 

 

17,767

 

 

 

18,080

 

Investment securities, tax-exempt

 

133

 

 

 

140

 

 

 

192

 

 

601

 

 

 

895

 

Other

 

430

 

 

 

360

 

 

 

333

 

 

1,373

 

 

 

1,284

 

Total interest income

 

63,981

 

 

 

66,729

 

 

 

68,578

 

 

254,772

 

 

 

263,031

 

Interest expense:

 

 

 

 

 

 

 

 

 

Deposits

 

2,624

 

 

 

2,924

 

 

 

4,811

 

 

12,276

 

 

 

30,459

 

Short-term borrowings

 

25

 

 

 

25

 

 

 

90

 

 

115

 

 

 

517

 

Subordinated notes

 

819

 

 

 

816

 

 

 

824

 

 

3,267

 

 

 

3,367

 

Long-term debt and mandatorily redeemable securities

 

446

 

 

 

740

 

 

 

746

 

 

2,476

 

 

 

2,868

 

Total interest expense

 

3,914

 

 

 

4,505

 

 

 

6,471

 

 

18,134

 

 

 

37,211

 

Net interest income

 

60,067

 

 

 

62,224

 

 

 

62,107

 

 

236,638

 

 

 

225,820

 

(Recovery of) provision for credit losses

 

(1,117

)

 

 

(2,559

)

 

 

4,970

 

 

(4,303

)

 

 

36,001

 

Net interest income after provision for credit losses

 

61,184

 

 

 

64,783

 

 

 

57,137

 

 

240,941

 

 

 

189,819

 

Noninterest income:

 

 

 

 

 

 

 

 

 

Trust and wealth advisory

 

5,949

 

 

 

5,886

 

 

 

5,524

 

 

23,782

 

 

 

21,114

 

Service charges on deposit accounts

 

2,867

 

 

 

2,767

 

 

 

2,634

 

 

10,589

 

 

 

9,485

 

Debit card

 

4,619

 

 

 

4,570

 

 

 

3,990

 

 

18,125

 

 

 

14,983

 

Mortgage banking

 

1,913

 

 

 

3,149

 

 

 

3,549

 

 

11,822

 

 

 

15,674

 

Insurance commissions

 

1,549

 

 

 

1,862

 

 

 

1,624

 

 

7,247

 

 

 

7,025

 

Equipment rental

 

3,817

 

 

 

3,946

 

 

 

5,167

 

 

16,647

 

 

 

23,380

 

(Losses) gains on investment securities available-for-sale

 

?

 

 

 

?

 

 

 

?

 

 

(680

)

 

 

279

 

Other

 

3,114

 

 

 

3,317

 

 

 

3,497

 

 

12,560

 

 

 

11,949

 

Total noninterest income

 

23,828

 

 

 

25,497

 

 

 

25,985

 

 

100,092

 

 

 

103,889

 

Noninterest expense:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

28,128

 

 

 

26,974

 

 

 

27,547

 

 

105,808

 

 

 

101,556

 

Net occupancy

 

2,624

 

 

 

2,654

 

 

 

2,539

 

 

10,524

 

 

 

10,276

 

Furniture and equipment

 

6,615

 

 

 

6,444

 

 

 

6,776

 

 

25,854

 

 

 

25,688

 

Depreciation ? leased equipment

 

3,132

 

 

 

3,239

 

 

 

4,940

 

 

13,694

 

 

 

20,203

 

Professional fees

 

3,102

 

 

 

1,815

 

 

 

1,576

 

 

8,676

 

 

 

6,317

 

Supplies and communication

 

1,610

 

 

 

1,427

 

 

 

1,234

 

 

5,942

 

 

 

5,563

 

FDIC and other insurance

 

844

 

 

 

396

 

 

 

851

 

 

2,677

 

 

 

2,606

 

Business development and marketing

 

1,200

 

 

 

4,465

 

 

 

754

 

 

8,013

 

 

 

4,157

 

Loan and lease collection and repossession

 

?

 

 

 

(585

)

 

 

444

 

 

30

 

 

 

3,099

 

Other

 

1,491

 

 

 

1,235

 

 

 

2,303

 

 

4,930

 

 

 

7,902

 

Total noninterest expense

 

48,746

 

 

 

48,064

 

 

 

48,964

 

 

186,148

 

 

 

187,367

 

Income before income taxes

 

36,266

 

 

 

42,216

 

 

 

34,158

 

 

154,885

 

 

 

106,341

 

Income tax expense

 

8,531

 

 

 

9,735

 

 

 

7,695

 

 

36,328

 

 

 

24,880

 

Net income

 

27,735

 

 

 

32,481

 

 

 

26,463

 

 

118,557

 

 

 

81,461

 

Net (income) loss attributable to noncontrolling interests

 

(12

)

 

 

2

 

 

 

1

 

 

(23

)

 

 

(24

)

Net income available to common shareholders

$

27,723

 

 

$

32,483

 

 

$

26,464

 

$

118,534

 

 

$

81,437

 

Per common share:

 

 

 

 

 

 

 

 

 

Basic net income per common share

$

1.11

 

 

$

1.29

 

 

$

1.03

 

$

4.70

 

 

$

3.17

 

Diluted net income per common share

$

1.11

 

 

$

1.29

 

 

$

1.03

 

$

4.70

 

 

$

3.17

 

Cash dividends

$

0.31

 

 

$

0.31

 

 

$

0.28

 

$

1.21

 

 

$

1.13

 

Basic weighted average common shares outstanding

 

24,775,288

 

 

 

24,919,956

 

 

 

25,492,140

 

 

25,038,127

 

 

 

25,527,154

 

Diluted weighted average common shares outstanding

 

24,775,288

 

 

 

24,919,956

 

 

 

25,492,140

 

 

25,038,127

 

 

 

25,527,154

 

 

 

1st SOURCE CORPORATION

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY

INTEREST RATES AND INTEREST DIFFERENTIAL

(Unaudited - Dollars in thousands)

 

 

 

Three Months Ended

 

 

 

December 31, 2021

 

September 30, 2021

 

December 31, 2020

 

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

$

1,686,231

 

 

$

5,091

 

 

1.20

%

 

$

1,451,523

 

 

$

4,533

 

 

1.24

%

 

$

1,056,727

 

 

$

3,940

 

 

1.48

%

Tax-exempt(1)

 

28,996

 

 

 

163

 

 

2.23

%

 

 

30,493

 

 

 

172

 

 

2.24

%

 

 

41,345

 

 

 

237

 

 

2.28

%

Mortgages held for sale

 

28,693

 

 

 

188

 

 

2.60

%

 

 

17,750

 

 

 

120

 

 

2.68

%

 

 

17,844

 

 

 

120

 

 

2.68

%

Loans and leases, net of unearned discount(1)

 

5,311,964

 

 

 

58,218

 

 

4.35

%

 

 

5,427,080

 

 

 

61,655

 

 

4.51

%

 

 

5,517,707

 

 

 

64,075

 

 

4.62

%

Other investments

 

659,954

 

 

 

430

 

 

0.26

%

 

 

477,406

 

 

 

360

 

 

0.30

%

 

 

347,837

 

 

 

333

 

 

0.38

%

Total earning assets(1)

 

7,715,838

 

 

 

64,090

 

 

3.30

%

 

 

7,404,252

 

 

 

66,840

 

 

3.58

%

 

 

6,981,460

 

 

 

68,705

 

 

3.92

%

Cash and due from banks

 

80,754

 

 

 

 

 

 

 

76,915

 

 

 

 

 

 

 

75,055

 

 

 

 

 

Allowance for loan and lease losses

 

(134,217

)

 

 

 

 

 

 

(137,206

)

 

 

 

 

 

 

(143,888

)

 

 

 

 

Other assets

 

448,680

 

 

 

 

 

 

 

452,802

 

 

 

 

 

 

 

489,804

 

 

 

 

 

Total assets

$

8,111,055

 

 

 

 

 

 

$

7,796,763

 

 

 

 

 

 

$

7,402,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

$

4,628,802

 

 

$

2,624

 

 

0.22

%

 

$

4,488,169

 

 

$

2,924

 

 

0.26

%

 

$

4,272,622

 

 

$

4,811

 

 

0.45

%

Short-term borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold under agreements to repurchase

 

194,678

 

 

 

24

 

 

0.05

%

 

 

177,720

 

 

 

24

 

 

0.05

%

 

 

215,770

 

 

 

88

 

 

0.16

%

Other short-term borrowings

 

5,474

 

 

 

1

 

 

0.07

%

 

 

5,492

 

 

 

1

 

 

0.07

%

 

 

6,929

 

 

 

2

 

 

0.11

%

Subordinated notes

 

58,764

 

 

 

819

 

 

5.53

%

 

 

58,764

 

 

 

816

 

 

5.51

%

 

 

58,764

 

 

 

824

 

 

5.58

%

Long-term debt and mandatorily redeemable securities

 

71,604

 

 

 

446

 

 

2.47

%

 

 

81,371

 

 

 

740

 

 

3.61

%

 

 

81,576

 

 

 

746

 

 

3.64

%

Total interest-bearing liabilities

 

4,959,322

 

 

 

3,914

 

 

0.31

%

 

 

4,811,516

 

 

 

4,505

 

 

0.37

%

 

 

4,635,661

 

 

 

6,471

 

 

0.56

%

Noninterest-bearing deposits

 

2,071,773

 

 

 

 

 

 

 

1,913,675

 

 

 

 

 

 

 

1,697,154

 

 

 

 

 

Other liabilities

 

113,897

 

 

 

 

 

 

 

111,337

 

 

 

 

 

 

 

147,703

 

 

 

 

 

Shareholders' equity

 

918,950

 

 

 

 

 

 

 

915,552

 

 

 

 

 

 

 

884,530

 

 

 

 

 

Noncontrolling interests

 

47,113

 

 

 

 

 

 

 

44,683

 

 

 

 

 

 

 

37,383

 

 

 

 

 

Total liabilities and equity

$

8,111,055

 

 

 

 

 

 

$

7,796,763

 

 

 

 

 

 

$

7,402,431

 

 

 

 

 

Less: Fully tax-equivalent adjustments

 

 

 

(109

)

 

 

 

 

 

 

(111

)

 

 

 

 

 

 

(127

)

 

 

Net interest income/margin (GAAP-derived)(1)

 

 

$

60,067

 

 

3.09

%

 

 

 

$

62,224

 

 

3.33

%

 

 

 

$

62,107

 

 

3.54

%

Fully tax-equivalent adjustments

 

 

 

109

 

 

 

 

 

 

 

111

 

 

 

 

 

 

 

127

 

 

 

Net interest income/margin - FTE(1)

 

 

$

60,176

 

 

3.09

%

 

 

 

$

62,335

 

 

3.34

%

 

 

 

$

62,234

 

 

3.55

%

(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)

 

Twelve Months Ended

 

December 31, 2021

 

December 31, 2020

 

Average
Balance

 

Interest
Income/
Expense

 

Yield/
Rate

 

Average
Balance

 

Interest
Income/
Expense

 

Yield/
Rate

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Investment securities available-for-sale:

 

 

 

 

 

 

 

 

 

 

 

Taxable

$

1,410,797

 

 

$

17,767

 

 

1.26

%

 

$

1,009,794

 

 

$

18,080

 

 

1.79

%

Tax-exempt(1)

 

32,583

 

 

 

741

 

 

2.27

%

 

 

48,266

 

 

 

1,105

 

 

2.29

%

Mortgages held for sale

 

17,026

 

 

 

448

 

 

2.63

%

 

 

20,628

 

 

 

600

 

 

2.91

%

Loans and leases, net of unearned discount(1)

 

5,437,817

 

 

 

234,902

 

 

4.32

%

 

 

5,463,436

 

 

 

242,505

 

 

4.44

%

Other investments

 

440,416

 

 

 

1,373

 

 

0.31

%

 

 

142,122

 

 

 

1,284

 

 

0.90

%

Total earning assets(1)

 

7,338,639

 

 

 

255,231

 

 

3.48

%

 

 

6,684,246

 

 

 

263,574

 

 

3.94

%

Cash and due from banks

 

77,275

 

 

 

 

 

 

 

71,626

 

 

 

 

 

Allowance for loan and lease losses

 

(139,141

)

 

 

 

 

 

 

(130,776

)

 

 

 

 

Other assets

 

454,374

 

 

 

 

 

 

 

494,913

 

 

 

 

 

Total assets

$

7,731,147

 

 

 

 

 

 

$

7,120,009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits

$

4,460,359

 

 

$

12,276

 

 

0.28

%

 

$

4,205,904

 

 

$

30,459

 

 

0.72

%

Short-term borrowings:

 

 

 

 

 

 

 

 

 

 

 

Securities sold under agreements to repurchase

 

180,610

 

 

 

112

 

 

0.06

%

 

 

173,398

 

 

 

317

 

 

0.18

%

Other short-term borrowings

 

6,119

 

 

 

3

 

 

0.05

%

 

 

27,767

 

 

 

200

 

 

0.72

%

Subordinated notes

 

58,764

 

 

 

3,267

 

 

5.56

%

 

 

58,764

 

 

 

3,367

 

 

5.73

%

Long-term debt and mandatorily redeemable securities

 

78,845

 

 

 

2,476

 

 

3.14

%

 

 

80,715

 

 

 

2,868

 

 

3.55

%

Total interest-bearing liabilities

 

4,784,697

 

 

 

18,134

 

 

0.38

%

 

 

4,546,548

 

 

 

37,211

 

 

0.82

%

Noninterest-bearing deposits

 

1,882,168

 

 

 

 

 

 

 

1,530,698

 

 

 

 

 

Other liabilities

 

112,291

 

 

 

 

 

 

 

145,807

 

 

 

 

 

Shareholders' equity

 

906,951

 

 

 

 

 

 

 

865,278

 

 

 

 

 

Noncontrolling interests

 

45,040

 

 

 

 

 

 

 

31,678

 

 

 

 

 

Total liabilities and equity

$

7,731,147

 

 

 

 

 

 

$

7,120,009

 

 

 

 

 

Less: Fully tax-equivalent adjustments

 

 

 

(459

)

 

 

 

 

 

 

(543

)

 

 

Net interest income/margin (GAAP-derived)(1)

 

 

$

236,638

 

 

3.22

%

 

 

 

$

225,820

 

 

3.38

%

Fully tax-equivalent adjustments

 

 

 

459

 

 

 

 

 

 

 

543

 

 

 

Net interest income/margin - FTE(1)

 

 

$

237,097

 

 

3.23

%

 

 

 

$

226,363

 

 

3.39

%

(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

 

Twelve Months Ended

 

 

December 31,

September 30,

December 31,

 

December 31,

December 31,

 

 

2021

2021

2020

 

2021

2020

Calculation of Net Interest Margin

 

 

 

 

 

 

(A)

Interest income (GAAP)

$

63,981

 

$

66,729

 

$

68,578

 

 

$

254,772

 

$

263,031

 

 

Fully tax-equivalent adjustments:

 

 

 

 

 

 

(B)

- Loans and leases

 

79

 

 

79

 

 

82

 

 

 

319

 

 

333

 

(C)

- Tax-exempt investment securities

 

30

 

 

32

 

 

45

 

 

 

140

 

 

210

 

(D)

Interest income - FTE (A+B+C)

 

64,090

 

 

66,840

 

 

68,705

 

 

 

255,231

 

 

263,574

 

(E)

Interest expense (GAAP)

 

3,914

 

 

4,505

 

 

6,471

 

 

 

18,134

 

 

37,211

 

(F)

Net interest income (GAAP) (A?E)

 

60,067

 

 

62,224

 

 

62,107

 

 

 

236,638

 

 

225,820

 

(G)

Net interest income - FTE (D?E)

 

60,176

 

 

62,335

 

 

62,234

 

 

 

237,097

 

 

226,363

 

(H)

Annualization factor

 

3.967

 

 

3.967

 

 

3.978

 

 

 

1.000

 

 

1.000

 

(I)

Total earning assets

$

7,715,838

 

$

7,404,252

 

$

6,981,460

 

 

$

7,338,639

 

$

6,684,246

 

 

Net interest margin (GAAP-derived) (F*H)/I

 

3.09

%

 

3.33

%

 

3.54

%

 

 

3.22

%

 

3.38

%

 

Net interest margin - FTE (G*H)/I

 

3.09

%

 

3.34

%

 

3.55

%

 

 

3.23

%

 

3.39

%

 

 

 

 

 

 

 

 

Calculation of Efficiency Ratio

 

 

 

 

 

 

(F)

Net interest income (GAAP)

$

60,067

 

$

62,224

 

$

62,107

 

 

$

236,638

 

$

225,820

 

(G)

Net interest income - FTE

 

60,176

 

 

62,335

 

 

62,234

 

 

 

237,097

 

 

226,363

 

(J)

Plus: noninterest income (GAAP)

 

23,828

 

 

25,497

 

 

25,985

 

 

 

100,092

 

 

103,889

 

(K)

Less: gains/losses on investment securities and partnership investments

 

(285

)

 

(623

)

 

(714

)

 

 

(1,020

)

 

(1,652

)

(L)

Less: depreciation - leased equipment

 

(3,132

)

 

(3,239

)

 

(4,940

)

 

 

(13,694

)

 

(20,203

)

(M)

Total net revenue (GAAP) (F+J)

 

83,895

 

 

87,721

 

 

88,092

 

 

 

336,730

 

 

329,709

 

(N)

Total net revenue - adjusted (G+J?K?L)

 

80,587

 

 

83,970

 

 

82,565

 

 

 

322,475

 

 

308,397

 

(O)

Noninterest expense (GAAP)

 

48,746

 

 

48,064

 

 

48,964

 

 

 

186,148

 

 

187,367

 

(L)

Less: depreciation - leased equipment

 

(3,132

)

 

(3,239

)

 

(4,940

)

 

 

(13,694

)

 

(20,203

)

(P)

Noninterest expense - adjusted (O?L)

 

45,614

 

 

44,825

 

 

44,024

 

 

 

172,454

 

 

167,164

 

 

Efficiency ratio (GAAP-derived) (O/M)

 

58.10

%

 

54.79

%

 

55.58

%

 

 

55.28

%

 

56.83

%

 

Efficiency ratio - adjusted (P/N)

 

56.60

%

 

53.38

%

 

53.32

%

 

 

53.48

%

 

54.20

%

 

 

 

 

 

 

 

 

 

 

End of Period

 

 

 

 

 

December 31,

September 30,

December 31,

 

 

 

 

 

2021

2021

2020

 

 

 

Calculation of Tangible Common Equity-to-Tangible Assets Ratio

 

 

 

 

 

(Q)

Total common shareholders' equity (GAAP)

$

916,255

 

$

911,333

 

$

886,845

 

 

 

 

(R)

Less: goodwill and intangible assets

 

(83,926

)

 

(83,931

)

 

(83,948

)

 

 

 

(S)

Total tangible common shareholders' equity (Q?R)

$

832,329

 

$

827,402

 

$

802,897

 

 

 

 

(T)

Total assets (GAAP)

 

8,096,289

 

 

7,964,092

 

 

7,316,411

 

 

 

 

(R)

Less: goodwill and intangible assets

 

(83,926

)

 

(83,931

)

 

(83,948

)

 

 

 

(U)

Total tangible assets (T?R)

$

8,012,363

 

$

7,880,161

 

$

7,232,463

 

 

 

 

 

Common equity-to-assets ratio (GAAP-derived) (Q/T)

 

11.32

%

 

11.44

%

 

12.12

%

 

 

 

 

Tangible common equity-to-tangible assets ratio (S/U)

 

10.39

%

 

10.50

%

 

11.10

%

 

 

 

 

 

 

 

 

 

 

 

Calculation of Tangible Book Value per Common Share

 

 

 

 

 

 

(Q)

Total common shareholders' equity (GAAP)

$

916,255

 

$

911,333

 

$

886,845

 

 

 

 

(V)

Actual common shares outstanding

 

24,739,512

 

 

24,797,533

 

 

25,389,117

 

 

 

 

 

Book value per common share (GAAP-derived) (Q/V)*1000

$

37.04

 

$

36.75

 

$

34.93

 

 

 

 

 

Tangible common book value per share (S/V)*1000

$

33.64

 

$

33.37

 

$

31.62

 

 

 

 

The NASDAQ Stock Market National Market Symbol: "SRCE" (CUSIP #336901 10 3)

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