1st Source Corp. (SRCE, Financial) filed Quarterly Report for the period ended 2009-09-30.
1ST SOURCE CORP.is a bank holding company engaged in general banking business. The bank offers a broad range of commercial banking personal banking and trust services. In addition 1st Source Bank provides highly specialized financing services for: automobile fleets in the rental and leasing industries; privately-held used aircraft; heavy duty trucks and construction equipment.These services are marketed nationwide. 1st Source Corp. has a market cap of $359.8 million; its shares were traded at around $15.36 with a P/E ratio of 11.5 and P/S ratio of 1.1. The dividend yield of 1st Source Corp. stocks is 4%. 1st Source Corp. had an annual average earning growth of 8.5% over the past 5 years.
As of September 30, 2009, total shareholders' equity was $574.33 million, up $120.67 million or 26.60% from the $453.66 million at December 31, 2008. In addition to net income of $19.27 million, other significant changes in shareholders equity during the first nine months of 2009 included $111.00 million from the issuance of preferred stock and common stock warrants to the Treasury as part of the Treasury s Capital Purchase Program and $14.22 million of dividends paid and/or accrued. The accumulated other comprehensive income/(loss) component of shareholders equity totaled $9.64 million at September 30, 2009, compared to $5.82 million at December 31, 2008. The increase in accumulated other comprehensive income/(loss) during 2009 was primarily a result of changes in unrealized gain/(loss) on securities in the available-for-sale portfolio. Our equity-to-assets ratio was 13.01% as of September 30, 2009, compared to 10.16% at December 31, 2008. Book value per common share rose to $19.46 at September 30, 2009, up from $18.82 at December 31, 2008.
Effective liquidity management ensures that the cash flow requirements of depositors and borrowers, as well as the operating cash needs of 1st Source Corporation, are met. Funds are available from a number of sources, including the securities portfolio, the core deposit base, Federal Home Loan Bank borrowings, Federal Reserve Bank borrowings, and the capability to package loans for sale. Our loan to asset ratio was 70.11% at September 30, 2009 compared to 73.88% at December 31, 2008 and 75.17% at September 30, 2008. Cash and cash equivalents totaled $56.41 million at September 30, 2009 compared to $119.77 million at December 31, 2008 and $75.70 million at September 30, 2008. The decrease in cash and cash equivalents is the result of making short term interest bearing investments at the Federal Reserve Bank. At September 30, 2009, the consolidated statement of financial condition was rate sensitive by $69.08 million more liabilities than assets scheduled to reprice within one year, or approximately 0.97%.
Net income for the three and nine month periods ended September 30, 2009, was $6.73 million and $19.27 million respectively, compared to $4.47 million and $21.07 million for the same periods in 2008. Diluted net income per common share was $0.21 and $0.60 respectively, for the three and nine month periods ended September 30, 2009, compared to $0.18 and $0.86 for the same periods in 2008. Return on average common shareholders' equity was 4.16% for the nine months ended September 30, 2009, compared to 6.35% in 2008. The return on total average assets was 0.57% for the nine months ended September 30, 2009, compared to 0.64% in 2008.
During the three and nine month periods ended September 30, 2009, average earning assets increased $83.78 million or 2.06% and $159.37 million or 3.94%, respectively, over the comparable periods in 2008. Average interest-bearing liabilities decreased $126.89 million or 3.61% and $39.39 million or 1.13% respectively, for the three and nine month periods ended September 30, 2009, over the comparable periods one year ago. The yield on average earning assets decreased 91 basis points to 4.84% for the third quarter of 2009 from 5.75% for the third quarter of 2008. The yield on average earning assets for the nine month period ended September 30, 2009 decreased 110 basis points to 4.89% from 5.99% for the nine month period ended September 30, 2008. The rate earned on assets decreased due to the reduction in short-term market interest rates from a year ago. Total cost of average interest-bearing liabilities decreased 72 basis points to 2.07% for the third quarter 2009 from 2.79% for the third quarter 2008. Total cost of average interest-bearing liabilities decreased 88 basis points to 2.18% for the nine months ended September 30, 2009, from 3.06% for the nine months ended September 30, 2008. The cost of interest-bearing liabilities was also affected by short-term market interest rate decreases. The result to the net interest margin, or the difference between interest income on earning assets and interest expense on interest-bearing liabilities, was a decrease of 19 basis points and 25 basis points respectively, for the three and nine month periods ended September 30, 2009 from September 30, 2008.
Average short-term borrowings decreased $251.32 million or 58.73% and $182.00 million or 48.63% respectively, for the third quarter of 2009 and the first nine months of 2009, compared to the same periods in 2008. The decrease in average short-term borrowings was primarily due to lower repurchase agreements and lower Federal Home Loan Bank borrowings. Interest paid on short-term borrowings decreased 150 basis points for the third quarter of 2009 and 166 basis points for the first nine months of 2009 due to the interest rate decrease on adjustable rate borrowings. Average subordinated notes decreased $1.69 million for the first nine months of 2009, compared to the same period in 2008. Average long-term debt decreased $14.89 million or 42.77% during the third quarter of 2009 as compared to the third quarter of 2008 and decreased $14.02 million or 40.49% during the first nine months of 2009 as compared to the first nine months of 2008. The majority of the decrease in long-term debt consisted of Federal Home Loan Bank borrowings.
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1ST SOURCE CORP.is a bank holding company engaged in general banking business. The bank offers a broad range of commercial banking personal banking and trust services. In addition 1st Source Bank provides highly specialized financing services for: automobile fleets in the rental and leasing industries; privately-held used aircraft; heavy duty trucks and construction equipment.These services are marketed nationwide. 1st Source Corp. has a market cap of $359.8 million; its shares were traded at around $15.36 with a P/E ratio of 11.5 and P/S ratio of 1.1. The dividend yield of 1st Source Corp. stocks is 4%. 1st Source Corp. had an annual average earning growth of 8.5% over the past 5 years.
Highlight of Business Operations:
Our total assets at September 30, 2009, were $4.41 billion, a decrease of $51.01 million or 1.14% from December 31, 2008. Total loans and leases were $3.09 billion, a decrease of $204.18 million or 6.19% from December 31, 2008. Mortgages held for sale were $39.36 million, a decrease of $7.32 million or 15.68% from December 31, 2008. Total investment securities, available for sale were $886.78 million which represented an increase of $162.02 million or 22.36% and total deposits were $3.49 billion, a decrease of $27.83 million or 0.79% over the comparable figures at the end of 2008.As of September 30, 2009, total shareholders' equity was $574.33 million, up $120.67 million or 26.60% from the $453.66 million at December 31, 2008. In addition to net income of $19.27 million, other significant changes in shareholders equity during the first nine months of 2009 included $111.00 million from the issuance of preferred stock and common stock warrants to the Treasury as part of the Treasury s Capital Purchase Program and $14.22 million of dividends paid and/or accrued. The accumulated other comprehensive income/(loss) component of shareholders equity totaled $9.64 million at September 30, 2009, compared to $5.82 million at December 31, 2008. The increase in accumulated other comprehensive income/(loss) during 2009 was primarily a result of changes in unrealized gain/(loss) on securities in the available-for-sale portfolio. Our equity-to-assets ratio was 13.01% as of September 30, 2009, compared to 10.16% at December 31, 2008. Book value per common share rose to $19.46 at September 30, 2009, up from $18.82 at December 31, 2008.
Effective liquidity management ensures that the cash flow requirements of depositors and borrowers, as well as the operating cash needs of 1st Source Corporation, are met. Funds are available from a number of sources, including the securities portfolio, the core deposit base, Federal Home Loan Bank borrowings, Federal Reserve Bank borrowings, and the capability to package loans for sale. Our loan to asset ratio was 70.11% at September 30, 2009 compared to 73.88% at December 31, 2008 and 75.17% at September 30, 2008. Cash and cash equivalents totaled $56.41 million at September 30, 2009 compared to $119.77 million at December 31, 2008 and $75.70 million at September 30, 2008. The decrease in cash and cash equivalents is the result of making short term interest bearing investments at the Federal Reserve Bank. At September 30, 2009, the consolidated statement of financial condition was rate sensitive by $69.08 million more liabilities than assets scheduled to reprice within one year, or approximately 0.97%.
Net income for the three and nine month periods ended September 30, 2009, was $6.73 million and $19.27 million respectively, compared to $4.47 million and $21.07 million for the same periods in 2008. Diluted net income per common share was $0.21 and $0.60 respectively, for the three and nine month periods ended September 30, 2009, compared to $0.18 and $0.86 for the same periods in 2008. Return on average common shareholders' equity was 4.16% for the nine months ended September 30, 2009, compared to 6.35% in 2008. The return on total average assets was 0.57% for the nine months ended September 30, 2009, compared to 0.64% in 2008.
During the three and nine month periods ended September 30, 2009, average earning assets increased $83.78 million or 2.06% and $159.37 million or 3.94%, respectively, over the comparable periods in 2008. Average interest-bearing liabilities decreased $126.89 million or 3.61% and $39.39 million or 1.13% respectively, for the three and nine month periods ended September 30, 2009, over the comparable periods one year ago. The yield on average earning assets decreased 91 basis points to 4.84% for the third quarter of 2009 from 5.75% for the third quarter of 2008. The yield on average earning assets for the nine month period ended September 30, 2009 decreased 110 basis points to 4.89% from 5.99% for the nine month period ended September 30, 2008. The rate earned on assets decreased due to the reduction in short-term market interest rates from a year ago. Total cost of average interest-bearing liabilities decreased 72 basis points to 2.07% for the third quarter 2009 from 2.79% for the third quarter 2008. Total cost of average interest-bearing liabilities decreased 88 basis points to 2.18% for the nine months ended September 30, 2009, from 3.06% for the nine months ended September 30, 2008. The cost of interest-bearing liabilities was also affected by short-term market interest rate decreases. The result to the net interest margin, or the difference between interest income on earning assets and interest expense on interest-bearing liabilities, was a decrease of 19 basis points and 25 basis points respectively, for the three and nine month periods ended September 30, 2009 from September 30, 2008.
Average short-term borrowings decreased $251.32 million or 58.73% and $182.00 million or 48.63% respectively, for the third quarter of 2009 and the first nine months of 2009, compared to the same periods in 2008. The decrease in average short-term borrowings was primarily due to lower repurchase agreements and lower Federal Home Loan Bank borrowings. Interest paid on short-term borrowings decreased 150 basis points for the third quarter of 2009 and 166 basis points for the first nine months of 2009 due to the interest rate decrease on adjustable rate borrowings. Average subordinated notes decreased $1.69 million for the first nine months of 2009, compared to the same period in 2008. Average long-term debt decreased $14.89 million or 42.77% during the third quarter of 2009 as compared to the third quarter of 2008 and decreased $14.02 million or 40.49% during the first nine months of 2009 as compared to the first nine months of 2008. The majority of the decrease in long-term debt consisted of Federal Home Loan Bank borrowings.
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