Quick10K

⚲

1st Source

Financials

Price	46.82	EPS	3
Shares	26	P/E	17
MCap	1,200	P/FCF	21
Net Debt	-127	EBIT	136
TEV	1,073	TEV/EBIT	8
TTM 2019-09-30, in MM, except price, ratios

Filings

10-Q	2020-06-30	Filed 2020-07-23
10-Q	2020-03-31	Filed 2020-04-23
10-K	2019-12-31	Filed 2020-02-20
10-Q	2019-09-30	Filed 2019-10-17
10-Q	2019-06-30	Filed 2019-07-18
10-Q	2019-03-31	Filed 2019-04-18
10-K	2018-12-31	Filed 2019-02-22
10-Q	2018-09-30	Filed 2018-10-18
10-Q	2018-06-30	Filed 2018-07-19
10-Q	2018-03-31	Filed 2018-04-19
10-K	2017-12-31	Filed 2018-02-16
10-Q	2017-09-30	Filed 2017-10-19
10-Q	2017-06-30	Filed 2017-07-20
10-Q	2017-03-31	Filed 2017-04-20
10-K	2016-12-31	Filed 2017-02-17
10-Q	2016-09-30	Filed 2016-10-20
10-Q	2016-06-30	Filed 2016-07-21
10-Q	2016-03-31	Filed 2016-04-21
10-K	2015-12-31	Filed 2016-02-19
10-Q	2015-09-30	Filed 2015-10-22
10-Q	2015-06-30	Filed 2015-07-23
10-Q	2015-03-31	Filed 2015-04-23
10-K	2014-12-31	Filed 2015-02-20
10-Q	2014-09-30	Filed 2014-10-23
10-Q	2014-06-30	Filed 2014-07-24
10-Q	2014-03-31	Filed 2014-04-24
10-K	2013-12-31	Filed 2014-02-21
10-Q	2013-09-30	Filed 2013-10-24
10-Q	2013-06-30	Filed 2013-07-25
10-Q	2013-03-31	Filed 2013-04-25
10-K	2012-12-31	Filed 2013-02-22
10-Q	2012-09-30	Filed 2012-10-25
10-Q	2012-06-30	Filed 2012-07-26
10-Q	2012-03-31	Filed 2012-04-26
10-K	2011-12-31	Filed 2012-02-17
10-Q	2011-09-30	Filed 2011-10-20
10-Q	2011-06-30	Filed 2011-07-21
10-Q	2011-03-31	Filed 2011-04-21
10-K	2010-12-31	Filed 2011-02-17
10-Q	2010-09-30	Filed 2010-10-21
10-Q	2010-06-30	Filed 2010-07-22
10-Q	2010-03-31	Filed 2010-04-22
10-K	2009-12-31	Filed 2010-02-19

Reports

8-K	2020-07-23	Officers, Exhibits
8-K	2020-07-23	Earnings, Exhibits
8-K	2020-07-03	Officers
8-K	2020-06-05
8-K	2020-05-15
8-K	2020-04-23
8-K	2020-04-23
8-K	2020-04-16
8-K	2020-04-14
8-K	2020-03-20
8-K	2020-02-13
8-K	2020-01-23
8-K	2020-01-23
8-K	2019-11-05
8-K	2019-10-17
8-K	2019-08-09
8-K	2019-07-30
8-K	2019-07-18
8-K	2019-07-09
8-K	2019-05-31
8-K	2019-04-18
8-K	2019-04-18
8-K	2019-02-14
8-K	2019-01-24
8-K	2018-10-31
8-K	2018-08-16
8-K	2018-05-08
8-K	2018-04-19
8-K	2018-04-19
8-K	2018-04-03
8-K	2018-02-07
8-K	2018-01-29
8-K	2018-01-18

1st Source Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow

source-20200630

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-6233

1st Source Corporation

(Exact name of registrant as specified in its charter)


Indiana						35-1068133
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

100 North Michigan Street

South Bend,

46601

(Address of principal executive offices)

(Zip Code)

(574) 235-2000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock - without par value

SRCE

The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). x Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes x No

Number of shares of common stock outstanding as of July 17, 2020 — 25,550,365 shares

Table of Contents

TABLE OF CONTENTS


		Page

PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)
	Consolidated Statements of Financial Condition — June 30, 2020 and December 31, 2019	3
	Consolidated Statements of Income — three and six months ended June 30, 2020 and 2019	4
	Consolidated Statements of Comprehensive Income — three and six months ended June 30, 2020 and 2019	5
	Consolidated Statements of Shareholders’ Equity — three and six months ended June 30, 2020 and 2019	6
	Consolidated Statements of Cash Flows — six months ended June 30, 2020 and 2019	7
	Notes to the Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	42
Item 4.	Controls and Procedures	42

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	42
Item 1A.	Risk Factors	42
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	43
Item 3.	Defaults Upon Senior Securities	43
Item 4.	Mine Safety Disclosures	43
Item 5.	Other Information	43
Item 6.	Exhibits	44

SIGNATURES			45

EXHIBITS
	Exhibit 31.1
	Exhibit 31.2
	Exhibit 32.1
	Exhibit 32.2

Table of Contents

1st SOURCE CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited - Dollars in thousands)


	June 30, 2020		December 31, 2019
ASSETS
Cash and due from banks	$	67,591	$	67,215
Federal funds sold and interest bearing deposits with other banks	112,645		16,150
Investment securities available-for-sale	1,055,797		1,040,583
Other investments	30,619		28,414

Mortgages held for sale	36,508		20,277
Loans and leases, net of unearned discount:
Commercial and agricultural	1,710,712		1,132,791
Auto and light truck	563,606		588,807
Medium and heavy duty truck	284,432		294,824
Aircraft	782,160		784,040
Construction equipment	739,027		705,451
Commercial real estate	942,971		908,177
Residential real estate and home equity	531,972		532,003
Consumer	137,442		139,434
Total loans and leases	5,692,322		5,085,527
Reserve for loan and lease losses	(131,283)		(111,254)
Net loans and leases	5,561,039		4,974,273
Equipment owned under operating leases, net	86,183		111,684
Net premises and equipment	51,486		52,219
Goodwill and intangible assets	83,959		83,971
Accrued income and other assets	279,319		227,990
Total assets	$	7,365,146	$	6,622,776

LIABILITIES
Deposits:
Noninterest-bearing demand	$	1,684,102	$	1,216,834
Interest-bearing deposits:
Interest-bearing demand	1,866,415		1,677,200
Savings	942,891		814,794
Time	1,500,048		1,648,498
Total interest-bearing deposits	4,309,354		4,140,492
Total deposits	5,993,456		5,357,326
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase	169,483		120,459
Other short-term borrowings	7,536		25,434
Total short-term borrowings	177,019		145,893
Long-term debt and mandatorily redeemable securities	81,760		71,639
Subordinated notes	58,764		58,764
Accrued expenses and other liabilities	152,494		140,518
Total liabilities	6,463,493		5,774,140

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 at June 30, 2020 and December 31, 2019	436,538		436,538
Retained earnings	484,491		463,269
Cost of common stock in treasury (2,655,319 shares at June 30, 2020 and 2,696,200 shares at December 31, 2019)	(75,922)		(76,702)
Accumulated other comprehensive income	19,888		5,172
Total shareholders’ equity	864,995		828,277
Noncontrolling interests	$	36,658	$	20,359
Total equity	$	901,653	$	848,636
Total liabilities and equity	$	7,365,146	$	6,622,776

The accompanying notes are a part of the unaudited consolidated financial statements.

Table of Contents

1st SOURCE CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

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


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Interest income:
Loans and leases	$	58,815	$	65,599	$	120,341	$	128,282
Investment securities, taxable	4,487		5,186		10,037		10,701
Investment securities, tax-exempt	232		353		496		738
Other	316		499		662		937
Total interest income	63,850		71,637		131,536		140,658
Interest expense:
Deposits	8,265		12,978		19,116		24,448
Short-term borrowings	90		540		344		1,471
Subordinated notes	835		928		1,719		1,856
Long-term debt and mandatorily redeemable securities	659		764		1,512		1,508
Total interest expense	9,849		15,210		22,691		29,283
Net interest income	54,001		56,427		108,845		111,375
Provision for loan and lease losses	10,375		4,247		21,728		9,165
Net interest income after provision for loan and lease losses	43,626		52,180		87,117		102,210
Noninterest income:
Trust and wealth advisory	5,589		5,583		10,437		10,441
Service charges on deposit accounts	1,910		2,785		4,515		5,283
Debit card	3,601		3,669		6,974		6,889
Mortgage banking	3,315		999		5,651		1,935
Insurance commissions	1,695		1,518		3,576		3,692
Equipment rental	5,990		7,809		12,620		15,791
(Losses) gains on investment securities available-for-sale	(1)		—		279		—
Other	3,142		3,301		5,811		5,757
Total noninterest income	25,241		25,664		49,863		49,788
Noninterest expense:
Salaries and employee benefits	23,999		23,787		48,400		47,282
Net occupancy	2,504		2,481		5,225		5,253
Furniture and equipment	6,258		6,289		12,665		12,313
Depreciation – leased equipment	5,142		6,400		10,569		12,924
Professional fees	1,258		1,706		2,700		3,304
Supplies and communication	1,390		1,608		3,024		3,101
FDIC and other insurance	599		608		887		1,253
Business development and marketing	1,121		1,678		2,480		2,627
Loan and lease collection and repossession	838		230		1,601		1,591
Other	1,716		2,566		3,809		2,909
Total noninterest expense	44,825		47,353		91,360		92,557
Income before income taxes	24,042		30,491		45,620		59,441
Income tax expense	5,516		7,074		10,676		13,828
Net income	18,526		23,417		34,944		45,613
Net (income) loss attributable to noncontrolling interests	(24)		(32)		(29)		(32)
Net income available to common shareholders	$	18,502	$	23,385	$	34,915	$	45,581
Per common share:
Basic net income per common share	$	0.72	$	0.91	$	1.36	$	1.76
Diluted net income per common share	$	0.72	$	0.91	$	1.36	$	1.76
Cash dividends	$	0.28	$	0.27	$	0.57	$	0.54
Basic weighted average common shares outstanding	25,540,855		25,615,718		25,532,105		25,687,056
Diluted weighted average common shares outstanding	25,540,855		25,615,718		25,532,105		25,687,056

The accompanying notes are a part of the unaudited consolidated financial statements.

Table of Contents

1st SOURCE CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited - Dollars in thousands)


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Net income	$	18,526	$	23,417	$	34,944	$	45,613
Other comprehensive income:
Unrealized appreciation of available-for-sale securities	2,946		7,668		19,663		17,241
Reclassification adjustment for realized losses (gains) included in net income	1		—		(279)		—
Income tax effect	(710)		(1,847)		(4,668)		(4,152)
Other comprehensive income, net of tax	2,237		5,821		14,716		13,089
Comprehensive income	20,763		29,238		$	49,660	$	58,702
Comprehensive (income) loss attributable to noncontrolling interests	(24)		(32)		(29)		(32)
Comprehensive income available to common shareholders	$	20,739	$	29,206	$	49,631	$	58,670

The accompanying notes are a part of the unaudited consolidated financial statements.

Table of Contents

1st SOURCE CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

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


	Three Months Ended
	Preferred Stock		Common Stock		Retained Earnings		Cost of Common Stock in Treasury		Accumulated Other Comprehensive Income (Loss), Net		Total Shareholders’ Equity		Noncontrolling Interests		Total Equity
Balance at April 1, 2019	$	—	$	436,538	$	414,428	$	(69,136)	$	(3,408)	$	778,422	$	2,679	$	781,101
Net income	—		—		23,385		—		—		23,385		32		23,417
Other comprehensive income	—		—		—		—

EX-31.1	ex31163020.htm
EX-31.2	ex31263020.htm
EX-32.1	ex32163020.htm
EX-32.2	ex32263020.htm

SRCE 10Q Quarterly Report

1st Source Earnings 2020-06-30