1st Source Corp. (SRCE, Financial) filed Quarterly Report for the period ended 2012-09-30.
1st Source Corporation has a market cap of $520.5 million; its shares were traded at around $21.96 with a P/E ratio of 11.2 and P/S ratio of 1.9. The dividend yield of 1st Source Corporation stocks is 3.2%. 1st Source Corporation had an annual average earning growth of 2.9% over the past 10 years.
The largest contributor to the decrease in the yield on average earning assets for the nine months ended September 30, 2012, compared to the nine months ended September 30, 2011, was a reduction in yields on net loans and leases of 31 basis points. Total average investment securities decreased $18.76 million or 2.15% for the third quarter and decreased $37.51 million or 4.11% for the nine month period over one year ago. Average mortgages held for sale increased $14.13 million or 169.39% and $6.85 million or 67.31% respectively, for the three and nine month periods ended September 30, 2012, over the comparable periods a year ago. Average net loans and leases increased $172.14 million or 5.56% for the third quarter of 2012 from the third quarter of 2011and $105.78 million or 3.43% for the nine months ended September 30, 2012 compared to the same period in 2011. Average other investments, which include federal funds sold, time deposits with other banks, Federal Reserve Bank excess balances, Federal Reserve Bank and Federal Home Loan Bank stock and commercial paper, increased $5.75 million or 10.37% and decreased $15.76 million or 20.07% respectively, for the three and nine month periods ended September 30, 2012, over the comparable periods a year ago.
Mortgage banking income increased $0.96 million or 91.29% in the third quarter of 2012 as compared to the third quarter of 2011. Mortgage banking income increased $3.13 million or 134.00% during the first nine months of 2012 versus the first nine months of 2011. This positive variance was caused by increased gains on loan sales due to higher production volumes and improved margins in 2012.
Loan and lease collection and repossession expense was higher by $0.48 million or 34.53% and $0.14 million or 3.21% in the third quarter and first nine months of 2012, respectively as compared to the same periods in 2011 mainly due to lower gains on sales of other real estate properties and higher repurchased mortgage loan losses in 2012 compared to 2011.
The provision for income taxes for the three and nine month periods ended September 30, 2012 was $7.36 million and $19.82 million, respectively compared to $6.91 million and $19.57 million for the same periods in 2011. The effective tax rates were 36.15% and 37.45% for the third quarter ended September 30, 2012 and 2011, respectively and 34.71% and 34.59% for the nine months ended September 30, 2012 and 2011, respectively. Additionally, during the first quarter of 2011 we reached a state tax settlement for the 2008 year and as a result recorded a reduction of unrecognized tax benefits in the amount of $0.84 million that affected the effective tax rate and increased earnings in the amount of $0.47 million.
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1st Source Corporation has a market cap of $520.5 million; its shares were traded at around $21.96 with a P/E ratio of 11.2 and P/S ratio of 1.9. The dividend yield of 1st Source Corporation stocks is 3.2%. 1st Source Corporation had an annual average earning growth of 2.9% over the past 10 years.
Highlight of Business Operations:
During the three and nine month periods ended September 30, 2012, average earning assets increased $173.26 million or 4.30% and $59.36 million or 1.45% respectively, over the comparable periods in 2011. Average interest-bearing liabilities increased $31.51 million or 0.98% and decreased $68.55 million or 2.08% respectively, for the three and nine month periods ended September 30, 2012 over the comparable periods one year ago. The yield on average earning assets decreased 28 basis points to 4.36% for the third quarter of 2012 from 4.64% for the third quarter of 2011. The yield on average earning assets for the nine month period ended September 30, 2012 decreased 25 basis points to 4.45% from 4.70% for the nine month period ended September 30, 2011. The rate earned on assets decreased due to the reduction in loan and investment yields in the current interest rate environment. Total cost of average interest-bearing liabilities decreased 29 basis points to 0.94% for the third quarter 2012 from 1.23% for the third quarter 2011. Total cost of average interest-bearing liabilities decreased 27 basis points to 0.97% for the nine months ended September 30, 2012, from 1.24% for the nine months ended September 30, 2011. The result to the net interest margin, or the ratio of net interest income to average earning assets, was a decrease of 3 basis points for the three month period ended September 30, 2012 from September 30, 2011. The net interest margin was flat for the nine months ended September 30, 2012 compared to the same period in 2011.The largest contributor to the decrease in the yield on average earning assets for the nine months ended September 30, 2012, compared to the nine months ended September 30, 2011, was a reduction in yields on net loans and leases of 31 basis points. Total average investment securities decreased $18.76 million or 2.15% for the third quarter and decreased $37.51 million or 4.11% for the nine month period over one year ago. Average mortgages held for sale increased $14.13 million or 169.39% and $6.85 million or 67.31% respectively, for the three and nine month periods ended September 30, 2012, over the comparable periods a year ago. Average net loans and leases increased $172.14 million or 5.56% for the third quarter of 2012 from the third quarter of 2011and $105.78 million or 3.43% for the nine months ended September 30, 2012 compared to the same period in 2011. Average other investments, which include federal funds sold, time deposits with other banks, Federal Reserve Bank excess balances, Federal Reserve Bank and Federal Home Loan Bank stock and commercial paper, increased $5.75 million or 10.37% and decreased $15.76 million or 20.07% respectively, for the three and nine month periods ended September 30, 2012, over the comparable periods a year ago.
Mortgage banking income increased $0.96 million or 91.29% in the third quarter of 2012 as compared to the third quarter of 2011. Mortgage banking income increased $3.13 million or 134.00% during the first nine months of 2012 versus the first nine months of 2011. This positive variance was caused by increased gains on loan sales due to higher production volumes and improved margins in 2012.
Loan and lease collection and repossession expense was higher by $0.48 million or 34.53% and $0.14 million or 3.21% in the third quarter and first nine months of 2012, respectively as compared to the same periods in 2011 mainly due to lower gains on sales of other real estate properties and higher repurchased mortgage loan losses in 2012 compared to 2011.
The provision for income taxes for the three and nine month periods ended September 30, 2012 was $7.36 million and $19.82 million, respectively compared to $6.91 million and $19.57 million for the same periods in 2011. The effective tax rates were 36.15% and 37.45% for the third quarter ended September 30, 2012 and 2011, respectively and 34.71% and 34.59% for the nine months ended September 30, 2012 and 2011, respectively. Additionally, during the first quarter of 2011 we reached a state tax settlement for the 2008 year and as a result recorded a reduction of unrecognized tax benefits in the amount of $0.84 million that affected the effective tax rate and increased earnings in the amount of $0.47 million.
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