Exhibit 99.1
 | |||||||||||
| For: | Immediate Release | Contact: | Brett Bauer | ||||||||
| October 24, 2024 | 574-235-2000 | ||||||||||
1st Source Corporation Reports Third Quarter Results,
Cash Dividend Declared
QUARTERLY HIGHLIGHTS
•Net income was $34.94 million for the quarter, up $2.00 million or 6.07% from the third quarter of 2023. Diluted net income per common share was $1.41, up $0.09 or 6.82% from the prior year’s third quarter of $1.32.
•Cash dividend of $0.36 cents per common share for the quarter was approved, up 12.50% from the cash dividend declared a year ago.
•Tax-equivalent net interest income was $75.63 million, up $1.44 million or 1.94% from the second quarter of 2024 and up $6.22 million, or 8.97% from the third quarter a year ago. Tax-equivalent net interest margin was 3.64%, up five basis points from the previous quarter and up 18 basis points from the third quarter a year ago.
•Net charge-offs of $0.85 million or 0.05% of average loans and leases occurred during the quarter compared to net recoveries of $1.99 million or 0.12% of average loans and leases during the previous quarter.
South Bend, IN - 1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported quarterly net income of $34.94 million for the third quarter of 2024, compared to $36.79 million the previous quarter and up 6.07% from the $32.94 million reported in the third quarter a year ago. Year-to-date 2024 net income was $101.19 million, up 4.86% compared to $96.50 million during the first nine months of 2023. Diluted net income per common share for the third quarter of 2024 was $1.41, down 5.37% compared to $1.49 in the previous quarter and up 6.82%, versus $1.32 in the third quarter of 2023. Diluted net income per common share for the first nine months of 2024 was $4.09, up 5.68% compared to $3.87 a year earlier.
At its October 2024 meeting, the Board of Directors approved a cash dividend of $0.36 cents per common share, up 12.50% from the cash dividend declared a year ago. The cash dividend is payable to shareholders of record on November 5, 2024, and will be paid on November 15, 2024.
Christopher J. Murphy III, Chairman and Chief Executive Officer, commented, “We are pleased with our increase in revenue and net interest margin expansion compared to the previous quarter. Disciplined loan and lease pricing lead to a five basis point improvement from the prior quarter. This marks the fourth consecutive quarter of margin expansion despite persistent deposit rate competition as the Federal Reserve raised rates or held them steady over that period. They have recently begun to lower rates.
“While still very good, credit was challenged in the quarter with elevated net charge-offs, the majority of which were from one business account. Nonperforming assets to loans and leases at September 30, 2024, was 0.47%, up from 0.31% at June 30, 2024, and the allowance for loan and lease losses as a percentage of total loans and leases remained strong at 2.30% up from 2.26% the previous quarter.
“We were very pleased to learn during the third quarter that 1st Source Bank won several accolades. We made Forbes’ America’s Best-in-State Employers list, which was created by surveying more than 160,000 employees working for companies that had at least 500 employees in the United States. Also, 1st Source Bank’s Specialty Finance Group was included in Monitor’s Best Companies in Equipment Finance in the Leadership category. Great leadership was defined for this award to include attributes such as accessibility, transparency, communication, and collaboration – an apt description of our Bank leadership team.
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“Another welcome honor was when two of our board members along with myself, were named to the Indiana 250 list by IBJ Media. Isaac Torres and Tracy Graham were both included in the list which identifies the state’s most influential community and business leaders. We are thrilled to have both Isaac and Tracy’s experience and leadership on our Board of Directors. Finally, we once again made the Piper Sandler Sm-All Stars list in the Class of 2024. This list identifies the top performing small-cap banks and thrifts in the U.S. These honors speak directly to our values and mission in the ways that we deliver both for our clients and colleagues – helping them achieve security, build wealth, and realize their dreams." Mr. Murphy concluded.
THIRD QUARTER 2024 FINANCIAL RESULTS
Loans
Third quarter average loans and leases were $6.61 billion, which was flat compared to the previous quarter, and increased $359.79 million, up 5.76% from the third quarter a year ago. Year-to-date average loans and leases increased $430.26 million to $6.57 billion, up 7.01% from the first nine months of 2023.
Deposits
Third quarter average deposits were $7.13 billion, which was down $49.25 million, or 0.69%, from the previous quarter, and up $184.32 million or 2.65% compared to the quarter ended September 30, 2023. Average deposits for the first nine months of 2024 were $7.11 billion, an increase of $190.13 million, up 2.75% from the same period a year ago. Average deposit balances declined from the previous quarter primarily due to expected seasonal public fund outflows and lower brokered deposit balances. Average deposit balance growth from the third quarter of 2023 was primarily in savings, time, and brokered deposits.
Net Interest Income and Net Interest Margin
Third quarter 2024 tax-equivalent net interest income increased $1.44 million to $75.63 million, up 1.94% from the previous quarter and increased $6.22 million, up 8.97% from the third quarter a year ago. For the first nine months of 2024, tax equivalent net interest income increased $14.00 million to $221.89 million, up 6.73% from the first nine months of 2023.
Third quarter 2024 net interest margin was 3.63%, an increase of four basis points from the 3.59% in the previous quarter and an increase of 18 basis points from the same period in 2023. On a fully tax-equivalent basis, third quarter 2024 net interest margin was 3.64%, up five basis points compared to the 3.59% in the previous quarter, and an increase of 18 basis points from the same period in 2023. The five basis point increase from the prior quarter was primarily due to higher rates on loan balances and less reliance on higher costing short-term borrowings.
Net interest margin for the first nine months of 2024 was 3.58%, an increase of eight basis points compared to the first nine months of 2023. Net interest margin on a fully-tax equivalent basis for the first nine months of 2024 was 3.59%, an increase of eight basis points compared to the first nine months of the prior year.
Noninterest Income
Third quarter 2024 noninterest income of $22.45 million was down $0.77 million, or 3.33% from the previous quarter, and decreased $2.01 million, down 8.21% compared to the third quarter a year ago. For the first nine months of 2024, noninterest income was $67.83 million, a decrease of $2.72 million, down 3.86% from the same period a year ago.
The decrease in noninterest income compared to the previous quarter was mainly due to lower trust and wealth advisory income from seasonal tax preparation fees during the second quarter, a decline in mortgage banking income from lower sales volumes, a decrease in partnership investment gains, lower interest rate swaps fees, and a reduction in equipment rental income as demand for leases declined. These decreases were offset by increased bank owned life insurance policy claims recognized.
The decrease in noninterest income compared to the third quarter and first nine months of 2023 was primarily due to fewer gains on the sale of renewable energy tax equity investments, reduced equipment rental income as demand for leases declined, lower contingent insurance commissions received, a decline in bank owned life insurance policy claims recognized, and less interest rate swap fees. These declines were offset by higher trust and wealth advisory income due to improvements in overall market performance and increased mortgage banking income from higher sales volumes and margins.
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Noninterest Expense
Third quarter 2024 noninterest expense of $49.44 million was flat compared to the prior quarter and decreased $0.72 million or 1.44% from the third quarter a year ago. For the first nine months of 2024, noninterest expense was $148.52 million, down slightly from the same period a year ago.
Total noninterest income was flat compared to the previous quarter. Increases were the result of higher employee benefit costs from increased group insurance claims and higher incentive compensation. These increases were offset by a decrease in the provision for unfunded loan commitments due to higher loan fundings and higher gains on the sale of fixed assets.
The decrease in noninterest expense compared to the third quarter and first nine months of 2023, was the result of a decrease in the loan loss provision for unfunded commitments due to higher loan fundings, lower leased equipment depreciation, reduced group insurance claims, and higher gains on the sale of fixed assets. These decreases were offset by higher salaries and wages from normal merit increases, the impact of wage inflation and an increase in the number of employees filling prior open positions, increased data processing costs from technology projects, and an increase in professional fees as a result of a $1.08 million reversal of accrued legal fees during the first quarter of 2023.
Credit
The allowance for loan and lease losses increased to $152.32 million as of September 30, 2024, or 2.30% of total loans and leases. This percentage compared to 2.26% at June 30, 2024, and 2.27% at September 30, 2023. Net charge-offs of $0.85 million were recorded for the third quarter of 2024, compared with net recoveries of $1.99 million in the prior quarter and net charge-offs of $0.33 million in the same quarter a year ago. The majority of the third quarter’s charge-offs related to one account in the commercial and agricultural portfolio.
The provision for credit losses was $3.11 million for the third quarter of 2024, an increase of $3.05 million from the previous quarter and an increase of $2.25 million compared with the same period in 2023. Net charge-offs and higher special attention outstandings compared to net recoveries in the previous quarter were the primary reasons for the increase in the provision for credit losses during the quarter, along with a change in quantitative assumptions during the quarter regarding the treatment of renewals for loans in special attention. The ratio of nonperforming assets to loans and leases was 0.47% as of September 30, 2024, compared to 0.31% on June 30, 2024, and 0.27% on September 30, 2023.
Capital
As of September 30, 2024, the common equity-to-assets ratio was 12.60%, compared to 11.75% at June 30, 2024, and 10.84% a year ago. The tangible common equity-to-tangible assets ratio was 11.76% at September 30, 2024, compared to 10.91% at June 30, 2024, and 9.96% a year earlier. The Common Equity Tier 1 ratio, calculated under banking regulatory guidelines, was 14.18% at September 30, 2024, compared to 13.74% at June 30, 2024, and 13.31% a year ago.
Capital accretion over the last twelve months has been driven primarily by growth in retained earnings and a reduction in unrealized losses in our short-duration investment securities available-for-sale portfolio.
Capital accretion over the last twelve months has been driven primarily by growth in retained earnings and a reduction in unrealized losses in our short-duration investment securities available-for-sale portfolio.
No shares were repurchased for treasury during the third quarter of 2024.
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.
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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 77 banking centers, 18 1st Source Bank Specialty Finance Group locations nationwide, nine Wealth Advisory Services locations, 10 1st Source Insurance offices, and three loan production 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,” “hope,” “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.
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(charts attached)
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| 1st SOURCE CORPORATION | ||||||||||||||||||||
| 3rd QUARTER 2024 FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (Unaudited - Dollars in thousands, except per share data) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | ||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||
| Assets | $ | 8,719,824 | $ | 8,761,006 | $ | 8,417,391 | $ | 8,711,023 | $ | 8,368,054 | ||||||||||
| Earning assets | 8,273,301 | 8,303,518 | 7,963,537 | 8,253,068 | 7,917,763 | |||||||||||||||
| Investments | 1,539,219 | 1,554,362 | 1,645,906 | 1,567,123 | 1,703,626 | |||||||||||||||
| Loans and leases | 6,605,677 | 6,606,209 | 6,245,883 | 6,572,108 | 6,141,849 | |||||||||||||||
| Deposits | 7,134,426 | 7,183,678 | 6,950,105 | 7,109,827 | 6,919,695 | |||||||||||||||
| Interest bearing liabilities | 5,806,983 | 5,922,916 | 5,566,874 | 5,837,681 | 5,470,305 | |||||||||||||||
| Common shareholders’ equity | 1,079,543 | 1,027,138 | 940,544 | 1,037,809 | 919,182 | |||||||||||||||
| Total equity | 1,150,795 | 1,098,740 | 999,552 | 1,111,540 | 987,461 | |||||||||||||||
| INCOME STATEMENT DATA | ||||||||||||||||||||
| Net interest income | $ | 75,486 | $ | 74,050 | $ | 69,236 | $ | 221,451 | $ | 207,317 | ||||||||||
Net interest income - FTE(1) | 75,630 | 74,194 | 69,406 | 221,887 | 207,892 | |||||||||||||||
| Provision for credit losses | 3,108 | 56 | 859 | 9,759 | 3,955 | |||||||||||||||
| Noninterest income | 22,448 | 23,221 | 24,455 | 67,825 | 70,547 | |||||||||||||||
| Noninterest expense | 49,443 | 49,491 | 50,166 | 148,520 | 148,752 | |||||||||||||||
| Net income | 34,914 | 36,805 | 32,939 | 101,181 | 96,517 | |||||||||||||||
| Net income available to common shareholders | 34,937 | 36,793 | 32,939 | 101,185 | 96,498 | |||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||
| Basic net income per common share | $ | 1.41 | $ | 1.49 | $ | 1.32 | $ | 4.09 | $ | 3.87 | ||||||||||
| Diluted net income per common share | 1.41 | 1.49 | 1.32 | 4.09 | 3.87 | |||||||||||||||
| Common cash dividends declared | 0.36 | 0.34 | 0.32 | 1.04 | 0.96 | |||||||||||||||
Book value per common share(2) | 45.05 | 42.58 | 37.83 | 45.05 | 37.83 | |||||||||||||||
Tangible book value per common share(1) | 41.62 | 39.16 | 34.40 | 41.62 | 34.40 | |||||||||||||||
| Market value - High | 65.63 | 53.74 | 49.36 | 65.63 | 53.85 | |||||||||||||||
| Market value - Low | 51.80 | 47.30 | 40.96 | 47.30 | 38.77 | |||||||||||||||
| Basic weighted average common shares outstanding | 24,514,144 | 24,495,495 | 24,660,508 | 24,489,665 | 24,677,914 | |||||||||||||||
| Diluted weighted average common shares outstanding | 24,514,144 | 24,495,495 | 24,660,508 | 24,489,665 | 24,677,914 | |||||||||||||||
| KEY RATIOS | ||||||||||||||||||||
| Return on average assets | 1.59 | % | 1.69 | % | 1.55 | % | 1.55 | % | 1.54 | % | ||||||||||
| Return on average common shareholders’ equity | 12.87 | 14.41 | 13.89 | 13.02 | 14.04 | |||||||||||||||
| Average common shareholders’ equity to average assets | 12.38 | 11.72 | 11.17 | 11.91 | 10.98 | |||||||||||||||
End of period tangible common equity to tangible assets(1) | 11.76 | 10.91 | 9.96 | 11.76 | 9.96 | |||||||||||||||
Risk-based capital - Common Equity Tier 1(3) | 14.18 | 13.74 | 13.31 | 14.18 | 13.31 | |||||||||||||||
Risk-based capital - Tier 1(3) | 15.84 | 15.38 | 14.86 | 15.84 | 14.86 | |||||||||||||||
Risk-based capital - Total(3) | 17.10 | 16.64 | 16.12 | 17.10 | 16.12 | |||||||||||||||
| Net interest margin | 3.63 | 3.59 | 3.45 | 3.58 | 3.50 | |||||||||||||||
Net interest margin - FTE(1) | 3.64 | 3.59 | 3.46 | 3.59 | 3.51 | |||||||||||||||
| Efficiency ratio: expense to revenue | 50.49 | 50.88 | 53.54 | 51.34 | 53.53 | |||||||||||||||
Efficiency ratio: expense to revenue - adjusted(1) | 50.32 | 50.78 | 54.24 | 51.20 | 53.46 | |||||||||||||||
| Net charge-offs (recoveries) to average loans and leases | 0.05 | (0.12) | 0.02 | 0.10 | (0.02) | |||||||||||||||
| Loan and lease loss allowance to loans and leases | 2.30 | 2.26 | 2.27 | 2.30 | 2.27 | |||||||||||||||
| Nonperforming assets to loans and leases | 0.47 | 0.31 | 0.27 | 0.47 | 0.27 | |||||||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
| 2024 | 2024 | 2024 | 2023 | 2023 | ||||||||||||||||
| END OF PERIOD BALANCES | ||||||||||||||||||||
| Assets | $ | 8,763,946 | $ | 8,878,003 | $ | 8,667,837 | $ | 8,727,958 | $ | 8,525,058 | ||||||||||
| Loans and leases | 6,616,100 | 6,652,999 | 6,562,772 | 6,518,505 | 6,353,648 | |||||||||||||||
| Deposits | 7,125,944 | 7,195,924 | 7,055,311 | 7,038,581 | 6,967,492 | |||||||||||||||
| Allowance for loan and lease losses | 152,324 | 150,067 | 148,024 | 147,552 | 144,074 | |||||||||||||||
| Goodwill and intangible assets | 83,902 | 83,907 | 83,912 | 83,916 | 83,921 | |||||||||||||||
| Common shareholders’ equity | 1,104,253 | 1,043,515 | 1,009,886 | 989,568 | 924,250 | |||||||||||||||
| Total equity | 1,175,205 | 1,114,855 | 1,081,549 | 1,068,263 | 982,997 | |||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||
| Loans and leases past due 90 days or more | $ | 100 | $ | 185 | $ | 26 | $ | 149 | $ | 154 | ||||||||||
| Nonaccrual loans and leases | 30,678 | 20,297 | 22,097 | 23,381 | 16,617 | |||||||||||||||
| Other real estate | — | — | — | — | 117 | |||||||||||||||
| Repossessions | 109 | 352 | 308 | 705 | 233 | |||||||||||||||
| Total nonperforming assets | $ | 30,887 | $ | 20,834 | $ | 22,431 | $ | 24,235 | $ | 17,121 | ||||||||||
(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.
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| 1st SOURCE CORPORATION | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||||||||||||||
| (Unaudited - Dollars in thousands) | |||||||||||||||||||||||
| September 30, | June 30, | December 31, | September 30, | ||||||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | ||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||
| Cash and due from banks | $ | 99,900 | $ | 89,592 | $ | 77,474 | $ | 75,729 | |||||||||||||||
| Federal funds sold and interest bearing deposits with other banks | 69,461 | 179,651 | 52,194 | 35,406 | |||||||||||||||||||
| Investment securities available-for-sale, at fair value | 1,563,461 | 1,523,548 | 1,622,600 | 1,605,242 | |||||||||||||||||||
| Other investments | 23,855 | 24,585 | 25,075 | 25,075 | |||||||||||||||||||
| Mortgages held for sale | 3,690 | 2,763 | 1,442 | 3,118 | |||||||||||||||||||
| Loans and leases, net of unearned discount: | |||||||||||||||||||||||
| Commercial and agricultural | 723,176 | 721,235 | 766,223 | 763,051 | |||||||||||||||||||
| Renewable energy | 479,947 | 459,441 | 399,708 | 364,949 | |||||||||||||||||||
| Auto and light truck | 949,473 | 1,009,967 | 966,912 | 901,484 | |||||||||||||||||||
| Medium and heavy duty truck | 299,208 | 315,157 | 311,947 | 323,202 | |||||||||||||||||||
| Aircraft | 1,065,801 | 1,058,591 | 1,078,172 | 1,079,581 | |||||||||||||||||||
| Construction equipment | 1,141,367 | 1,132,556 | 1,084,752 | 1,062,097 | |||||||||||||||||||
| Commercial real estate | 1,156,823 | 1,164,598 | 1,129,861 | 1,088,199 | |||||||||||||||||||
| Residential real estate and home equity | 664,581 | 654,357 | 637,973 | 627,515 | |||||||||||||||||||
| Consumer | 135,724 | 137,097 | 142,957 | 143,570 | |||||||||||||||||||
| Total loans and leases | 6,616,100 | 6,652,999 | 6,518,505 | 6,353,648 | |||||||||||||||||||
| Allowance for loan and lease losses | (152,324) | (150,067) | (147,552) | (144,074) | |||||||||||||||||||
| Net loans and leases | 6,463,776 | 6,502,932 | 6,370,953 | 6,209,574 | |||||||||||||||||||
| Equipment owned under operating leases, net | 13,011 | 13,886 | 20,366 | 24,096 | |||||||||||||||||||
| Premises and equipment, net | 48,185 | 48,201 | 46,159 | 43,951 | |||||||||||||||||||
| Goodwill and intangible assets | 83,902 | 83,907 | 83,916 | 83,921 | |||||||||||||||||||
| Accrued income and other assets | 394,705 | 405,938 | 427,779 | 418,946 | |||||||||||||||||||
| Total assets | $ | 8,763,946 | $ | 8,875,003 | $ | 8,727,958 | $ | 8,525,058 | |||||||||||||||
| LIABILITIES | |||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||
| Noninterest-bearing demand | $ | 1,635,981 | $ | 1,578,762 | $ | 1,655,728 | $ | 1,680,725 | |||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||
| Interest-bearing demand | 2,404,805 | 2,543,724 | 2,430,833 | 2,416,864 | |||||||||||||||||||
| Savings | 1,242,551 | 1,255,154 | 1,213,334 | 1,180,837 | |||||||||||||||||||
| Time | 1,842,607 | 1,818,284 | 1,738,686 | 1,689,066 | |||||||||||||||||||
| Total interest-bearing deposits | 5,489,963 | 5,617,162 | 5,382,853 | 5,286,767 | |||||||||||||||||||
| Total deposits | 7,125,944 | 7,195,924 | 7,038,581 | 6,967,492 | |||||||||||||||||||
| Short-term borrowings: | |||||||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 63,553 | 70,767 | 55,809 | 48,335 | |||||||||||||||||||
| Other short-term borrowings | 102,124 | 217,450 | 256,550 | 223,757 | |||||||||||||||||||
| Total short-term borrowings | 165,677 | 288,217 | 312,359 | 272,092 | |||||||||||||||||||
| Long-term debt and mandatorily redeemable securities | 39,220 | 39,136 | 47,911 | 46,533 | |||||||||||||||||||
| Subordinated notes | 58,764 | 58,764 | 58,764 | 58,764 | |||||||||||||||||||
| Accrued expenses and other liabilities | 199,136 | 181,107 | 202,080 | 197,180 | |||||||||||||||||||
| Total liabilities | 7,588,741 | 7,763,148 | 7,659,695 | 7,542,061 | |||||||||||||||||||
| 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 September 30, 2024, June 30, 2024, December 31, 2023, and September 30, 2023, respectively | 436,538 | 436,538 | 436,538 | 436,538 | |||||||||||||||||||
| Retained earnings | 868,075 | 841,790 | 789,842 | 769,603 | |||||||||||||||||||
Cost of common stock in treasury (3,691,291, 3,698,651, 3,771,070, and 3,776,591 shares at September 30, 2024, June 30, 2024, December 31, 2023, and September 30, 2023, respectively) | (129,134) | (129,248) | (130,489) | (130,579) | |||||||||||||||||||
| Accumulated other comprehensive loss | (71,226) | (105,565) | (106,323) | (151,312) | |||||||||||||||||||
| Total shareholders’ equity | 1,104,253 | 1,043,515 | 989,568 | 924,250 | |||||||||||||||||||
| Noncontrolling interests | 70,952 | 71,340 | 78,695 | 58,747 | |||||||||||||||||||
| Total equity | 1,175,205 | 1,114,855 | 1,068,263 | 982,997 | |||||||||||||||||||
| Total liabilities and equity | $ | 8,763,946 | $ | 8,878,003 | $ | 8,727,958 | $ | 8,525,058 | |||||||||||||||
- 6 -
| 1st SOURCE CORPORATION | |||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||||||||||||
| (Unaudited - Dollars in thousands, except per share amounts) | |||||||||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||||||
| Loans and leases | $ | 115,200 | $ | 113,101 | $ | 100,206 | $ | 337,503 | $ | 280,195 | |||||||||||||||||||
| Investment securities, taxable | 6,120 | 5,900 | 5,918 | 18,099 | 18,512 | ||||||||||||||||||||||||
| Investment securities, tax-exempt | 251 | 254 | 319 | 765 | 1,131 | ||||||||||||||||||||||||
| Other | 1,659 | 1,914 | 883 | 4,500 | 2,498 | ||||||||||||||||||||||||
| Total interest income | 123,230 | 121,169 | 107,326 | 360,867 | 302,336 | ||||||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||||||
| Deposits | 43,782 | 43,095 | 34,405 | 126,621 | 84,538 | ||||||||||||||||||||||||
| Short-term borrowings | 1,509 | 2,158 | 2,136 | 6,769 | 5,154 | ||||||||||||||||||||||||
| Subordinated notes | 1,054 | 1,061 | 1,060 | 3,176 | 3,108 | ||||||||||||||||||||||||
| Long-term debt and mandatorily redeemable securities | 1,399 | 805 | 489 | 2,850 | 2,219 | ||||||||||||||||||||||||
| Total interest expense | 47,744 | 47,119 | 38,090 | 139,416 | 95,019 | ||||||||||||||||||||||||
| Net interest income | 75,486 | 74,050 | 69,236 | 221,451 | 207,317 | ||||||||||||||||||||||||
| Provision for credit losses | 3,108 | 56 | 859 | 9,759 | 3,955 | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | 72,378 | 73,994 | 68,377 | 211,692 | 203,362 | ||||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||
| Trust and wealth advisory | 6,524 | 7,081 | 5,648 | 19,892 | 17,794 | ||||||||||||||||||||||||
| Service charges on deposit accounts | 3,279 | 3,203 | 3,297 | 9,552 | 9,418 | ||||||||||||||||||||||||
| Debit card | 4,598 | 4,562 | 4,377 | 13,361 | 13,585 | ||||||||||||||||||||||||
| Mortgage banking | 1,042 | 1,280 | 971 | 3,272 | 2,699 | ||||||||||||||||||||||||
| Insurance commissions | 1,641 | 1,611 | 1,714 | 5,028 | 5,384 | ||||||||||||||||||||||||
| Equipment rental | 1,141 | 1,257 | 2,101 | 4,069 | 6,930 | ||||||||||||||||||||||||
| Losses on investment securities available-for-sale | — | — | — | — | (44) | ||||||||||||||||||||||||
| Other | 4,223 | 4,227 | 6,347 | 12,651 | 14,781 | ||||||||||||||||||||||||
| Total noninterest income | 22,448 | 23,221 | 24,455 | 67,825 | 70,547 | ||||||||||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||||||||
| Salaries and employee benefits | 31,274 | 29,238 | 28,866 | 90,084 | 85,699 | ||||||||||||||||||||||||
| Net occupancy | 3,011 | 2,908 | 2,867 | 8,915 | 8,165 | ||||||||||||||||||||||||
| Furniture and equipment | 1,496 | 1,265 | 1,217 | 3,910 | 3,938 | ||||||||||||||||||||||||
| Data processing | 7,002 | 6,712 | 6,289 | 20,214 | 18,714 | ||||||||||||||||||||||||
| Depreciation – leased equipment | 907 | 999 | 1,672 | 3,194 | 5,570 | ||||||||||||||||||||||||
| Professional fees | 1,928 | 1,713 | 1,763 | 4,986 | 4,149 | ||||||||||||||||||||||||
| FDIC and other insurance | 1,423 | 1,627 | 1,598 | 4,707 | 4,302 | ||||||||||||||||||||||||
| Business development and marketing | 1,671 | 2,026 | 1,201 | 5,441 | 4,822 | ||||||||||||||||||||||||
| Other | 731 | 3,003 | 4,693 | 7,069 | 13,393 | ||||||||||||||||||||||||
| Total noninterest expense | 49,443 | 49,491 | 50,166 | 148,520 | 148,752 | ||||||||||||||||||||||||
| Income before income taxes | 45,383 | 47,724 | 42,666 | 130,997 | 125,157 | ||||||||||||||||||||||||
| Income tax expense | 10,469 | 10,919 | 9,727 | 29,816 | 28,640 | ||||||||||||||||||||||||
| Net income | 34,914 | 36,805 | 32,939 | 101,181 | 96,517 | ||||||||||||||||||||||||
| Net loss (income) attributable to noncontrolling interests | 23 | (12) | — | 4 | (19) | ||||||||||||||||||||||||
| Net income available to common shareholders | $ | 34,937 | $ | 36,793 | $ | 32,939 | $ | 101,185 | $ | 96,498 | |||||||||||||||||||
| Per common share: | |||||||||||||||||||||||||||||
| Basic net income per common share | $ | 1.41 | $ | 1.49 | $ | 1.32 | $ | 4.09 | $ | 3.87 | |||||||||||||||||||
| Diluted net income per common share | $ | 1.41 | $ | 1.49 | $ | 1.32 | $ | 4.09 | $ | 3.87 | |||||||||||||||||||
| Basic weighted average common shares outstanding | 24,514,144 | 24,495,495 | 24,660,508 | 24,489,665 | 24,677,914 | ||||||||||||||||||||||||
| Diluted weighted average common shares outstanding | 24,514,144 | 24,495,495 | 24,660,508 | 24,489,665 | 24,677,914 | ||||||||||||||||||||||||
- 7 -
| 1st SOURCE CORPORATION | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST RATES AND INTEREST DIFFERENTIAL | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited - Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 | $ | 1,510,162 | $ | 6,120 | 1.61 | % | $ | 1,524,751 | $ | 5,900 | 1.56 | % | $ | 1,605,912 | $ | 5,918 | 1.46 | % | |||||||||||||||||||||||||||||||||||
Tax exempt(1) | 29,057 | 316 | 4.33 | % | 29,611 | 319 | 4.33 | % | 39,994 | 397 | 3.94 | % | |||||||||||||||||||||||||||||||||||||||||
| Mortgages held for sale | 3,758 | 63 | 6.67 | % | 4,179 | 65 | 6.26 | % | 3,169 | 54 | 6.76 | % | |||||||||||||||||||||||||||||||||||||||||
Loans and leases, net of unearned discount(1) | 6,605,677 | 115,216 | 6.94 | % | 6,606,209 | 113,115 | 6.89 | % | 6,245,883 | 100,244 | 6.37 | % | |||||||||||||||||||||||||||||||||||||||||
| Other investments | 124,647 | 1,659 | 5.29 | % | 138,768 | 1,914 | 5.55 | % | 68,579 | 883 | 5.11 | % | |||||||||||||||||||||||||||||||||||||||||
Total earning assets(1) | 8,273,301 | 123,374 | 5.93 | % | 8,303,518 | 121,313 | 5.88 | % | 7,963,537 | 107,496 | 5.36 | % | |||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 64,014 | 60,908 | 68,640 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses | (151,693) | (149,688) | (145,197) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 534,202 | 546,268 | 530,411 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 8,719,824 | $ | 8,761,006 | $ | 8,417,391 | |||||||||||||||||||||||||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 5,534,358 | $ | 43,782 | 3.15 | % | $ | 5,603,880 | $ | 43,095 | 3.09 | % | $ | 5,247,332 | $ | 34,405 | 2.60 | % | |||||||||||||||||||||||||||||||||||
| Short-term borrowings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 64,032 | 173 | 1.07 | % | 61,729 | 146 | 0.95 | % | 60,736 | 35 | 0.23 | % | |||||||||||||||||||||||||||||||||||||||||
| Other short-term borrowings | 110,710 | 1,336 | 4.80 | % | 159,953 | 2,012 | 5.06 | % | 153,523 | 2,101 | 5.43 | % | |||||||||||||||||||||||||||||||||||||||||
| Subordinated notes | 58,764 | 1,054 | 7.14 | % | 58,764 | 1,061 | 7.26 | % | 58,764 | 1,060 | 7.16 | % | |||||||||||||||||||||||||||||||||||||||||
| Long-term debt and mandatorily redeemable securities | 39,119 | 1,399 | 14.23 | % | 38,590 | 805 | 8.39 | % | 46,519 | 489 | 4.17 | % | |||||||||||||||||||||||||||||||||||||||||
| Total interest-bearing liabilities | 5,806,983 | 47,744 | 3.27 | % | 5,922,916 | 47,119 | 3.20 | % | 5,566,874 | 38,090 | 2.71 | % | |||||||||||||||||||||||||||||||||||||||||
| Noninterest-bearing deposits | 1,600,068 | 1,579,798 | 1,702,773 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 161,978 | 159,552 | 148,192 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 1,079,543 | 1,027,138 | 940,544 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests | 71,252 | 71,602 | 59,008 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 8,719,824 | $ | 8,761,006 | $ | 8,417,391 | |||||||||||||||||||||||||||||||||||||||||||||||
| Less: Fully tax-equivalent adjustments | (144) | (144) | (170) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/margin (GAAP-derived)(1) | $ | 75,486 | 3.63 | % | $ | 74,050 | 3.59 | % | $ | 69,236 | 3.45 | % | |||||||||||||||||||||||||||||||||||||||||
| Fully tax-equivalent adjustments | 144 | 144 | 170 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/margin - FTE(1) | $ | 75,630 | 3.64 | % | $ | 74,194 | 3.59 | % | $ | 69,406 | 3.46 | % | |||||||||||||||||||||||||||||||||||||||||
| (1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
- 8 -
| 1st SOURCE CORPORATION | |||||||||||||||||||||||||||||||||||
| DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||
| INTEREST RATES AND INTEREST DIFFERENTIAL | |||||||||||||||||||||||||||||||||||
| (Unaudited - Dollars in thousands) | |||||||||||||||||||||||||||||||||||
| Nine Months Ended | |||||||||||||||||||||||||||||||||||
| September 30, 2024 | September 30, 2023 | ||||||||||||||||||||||||||||||||||
| Average Balance | Interest Income/Expense | Yield/ Rate | Average Balance | Interest Income/Expense | Yield/ Rate | ||||||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||||||||
| Investment securities available-for-sale: | |||||||||||||||||||||||||||||||||||
| Taxable | $ | 1,537,066 | $ | 18,099 | 1.57 | % | $ | 1,657,241 | $ | 18,512 | 1.49 | % | |||||||||||||||||||||||
Tax exempt(1) | 30,057 | 962 | 4.28 | % | 46,385 | 1,413 | 4.07 | % | |||||||||||||||||||||||||||
| Mortgages held for sale | 3,257 | 162 | 6.64 | % | 2,489 | 114 | 6.12 | % | |||||||||||||||||||||||||||
Loans and leases, net of unearned discount(1) | 6,572,108 | 337,580 | 6.86 | % | 6,141,849 | 280,374 | 6.10 | % | |||||||||||||||||||||||||||
| Other investments | 110,580 | 4,500 | 5.44 | % | 69,799 | 2,498 | 4.78 | % | |||||||||||||||||||||||||||
Total earning assets(1) | 8,253,068 | 361,303 | 5.85 | % | 7,917,763 | 302,911 | 5.11 | % | |||||||||||||||||||||||||||
| Cash and due from banks | 62,277 | 70,288 | |||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses | (150,127) | (143,545) | |||||||||||||||||||||||||||||||||
| Other assets | 545,805 | 523,548 | |||||||||||||||||||||||||||||||||
| Total assets | $ | 8,711,023 | $ | 8,368,054 | |||||||||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | 5,511,116 | 126,621 | 3.07 | % | 5,143,493 | 84,538 | 2.20 | % | |||||||||||||||||||||||||||
| Short-term borrowings: | |||||||||||||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 57,934 | 366 | 0.84 | % | 87,909 | 107 | 0.16 | % | |||||||||||||||||||||||||||
| Other short-term borrowings | 168,234 | 6,403 | 5.08 | % | 133,965 | 5,047 | 5.04 | % | |||||||||||||||||||||||||||
| Subordinated notes | 58,764 | 3,176 | 7.22 | % | 58,764 | 3,108 | 7.07 | % | |||||||||||||||||||||||||||
| Long-term debt and mandatorily redeemable securities | 41,633 | 2,850 | 9.14 | % | 46,174 | 2,219 | 6.43 | % | |||||||||||||||||||||||||||
| Total interest-bearing liabilities | 5,837,681 | 139,416 | 3.19 | % | 5,470,305 | 95,019 | 2.32 | % | |||||||||||||||||||||||||||
| Noninterest-bearing deposits | 1,598,711 | 1,776,202 | |||||||||||||||||||||||||||||||||
| Other liabilities | 163,091 | 143,086 | |||||||||||||||||||||||||||||||||
| Shareholders’ equity | 1,037,809 | 919,182 | |||||||||||||||||||||||||||||||||
| Noncontrolling interests | 73,731 | 59,279 | |||||||||||||||||||||||||||||||||
| Total liabilities and equity | $ | 8,711,023 | $ | 8,368,054 | |||||||||||||||||||||||||||||||
| Less: Fully tax-equivalent adjustments | (436) | (575) | |||||||||||||||||||||||||||||||||
Net interest income/margin (GAAP-derived)(1) | $ | 221,451 | 3.58 | % | $ | 207,317 | 3.50 | % | |||||||||||||||||||||||||||
| Fully tax-equivalent adjustments | 436 | 575 | |||||||||||||||||||||||||||||||||
Net interest income/margin - FTE(1) | $ | 221,887 | 3.59 | % | $ | 207,892 | 3.51 | % | |||||||||||||||||||||||||||
| (1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio. | |||||||||||||||||||||||||||||||||||
- 9 -
| 1st SOURCE CORPORATION | |||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||
| (Unaudited - Dollars in thousands, except per share data) | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||||||||
| 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
| Calculation of Net Interest Margin | |||||||||||||||||||||||
| (A) | Interest income (GAAP) | $ | 123,230 | $ | 121,169 | $ | 107,326 | $ | 360,867 | $ | 302,336 | ||||||||||||
| Fully tax-equivalent adjustments: | |||||||||||||||||||||||
| (B) | – Loans and leases | 79 | 79 | 92 | 239 | 293 | |||||||||||||||||
| (C) | – Tax exempt investment securities | 65 | 65 | 78 | 197 | 282 | |||||||||||||||||
| (D) | Interest income – FTE (A+B+C) | 123,374 | 121,313 | 107,496 | 361,303 | 302,911 | |||||||||||||||||
| (E) | Interest expense (GAAP) | 47,744 | 47,119 | 38,090 | 139,416 | 95,019 | |||||||||||||||||
| (F) | Net interest income (GAAP) (A-E) | 75,486 | 74,050 | 69,236 | 221,451 | 207,317 | |||||||||||||||||
| (G) | Net interest income - FTE (D-E) | 75,630 | 74,194 | 69,406 | 221,887 | 207,892 | |||||||||||||||||
| (H) | Annualization factor | 3.978 | 4.022 | 3.967 | 1.336 | 1.337 | |||||||||||||||||
| (I) | Total earning assets | $ | 8,273,301 | $ | 8,303,518 | $ | 7,963,537 | $ | 8,253,068 | $ | 7,917,763 | ||||||||||||
| Net interest margin (GAAP-derived) (F*H)/I | 3.63 | % | 3.59 | % | 3.45 | % | 3.58 | % | 3.50 | % | |||||||||||||
| Net interest margin – FTE (G*H)/I | 3.64 | % | 3.59 | % | 3.46 | % | 3.59 | % | 3.51 | % | |||||||||||||
| Calculation of Efficiency Ratio | |||||||||||||||||||||||
| (F) | Net interest income (GAAP) | $ | 75,486 | $ | 74,050 | $ | 69,236 | $ | 221,451 | $ | 207,317 | ||||||||||||
| (G) | Net interest income – FTE | 75,630 | 74,194 | 69,406 | 221,887 | 207,892 | |||||||||||||||||
| (J) | Plus: noninterest income (GAAP) | 22,448 | 23,221 | 24,455 | 67,825 | 70,547 | |||||||||||||||||
| (K) | Less: gains/losses on investment securities and partnership investments | (712) | (929) | (2,779) | (2,678) | (5,049) | |||||||||||||||||
| (L) | Less: depreciation – leased equipment | (907) | (999) | (1,672) | (3,194) | (5,570) | |||||||||||||||||
| (M) | Total net revenue (GAAP) (F+J) | 97,934 | 97,271 | 93,691 | 289,276 | 277,864 | |||||||||||||||||
| (N) | Total net revenue – adjusted (G+J–K–L) | 96,459 | 95,487 | 89,410 | 283,840 | 267,820 | |||||||||||||||||
| (O) | Noninterest expense (GAAP) | 49,443 | 49,491 | 50,166 | 148,520 | 148,752 | |||||||||||||||||
| (L) | Less:depreciation – leased equipment | (907) | (999) | (1,672) | (3,194) | (5,570) | |||||||||||||||||
| (P) | Noninterest expense – adjusted (O–L) | 48,536 | 48,492 | 48,494 | 145,326 | 143,182 | |||||||||||||||||
| Efficiency ratio (GAAP-derived) (O/M) | 50.49 | % | 50.88 | % | 53.54 | % | 51.34 | % | 53.53 | % | |||||||||||||
| Efficiency ratio – adjusted (P/N) | 50.32 | % | 50.78 | % | 54.24 | % | 51.20 | % | 53.46 | % | |||||||||||||
| End of Period | |||||||||||||||||||||||
| September 30, | June 30, | September 30, | |||||||||||||||||||||
| 2024 | 2024 | 2023 | |||||||||||||||||||||
| Calculation of Tangible Common Equity-to-Tangible Assets Ratio | |||||||||||||||||||||||
| (Q) | Total common shareholders’ equity (GAAP) | $ | 1,104,253 | $ | 1,043,515 | $ | 924,250 | ||||||||||||||||
| (R) | Less: goodwill and intangible assets | (83,902) | (83,907) | (83,921) | |||||||||||||||||||
| (S) | Total tangible common shareholders’ equity (Q–R) | $ | 1,020,351 | $ | 959,608 | $ | 840,329 | ||||||||||||||||
| (T) | Total assets (GAAP) | 8,763,946 | 8,878,003 | 8,525,058 | |||||||||||||||||||
| (R) | Less: goodwill and intangible assets | (83,902) | (83,907) | (83,921) | |||||||||||||||||||
| (U) | Total tangible assets (T–R) | $ | 8,680,044 | $ | 8,794,096 | $ | 8,441,137 | ||||||||||||||||
| Common equity-to-assets ratio (GAAP-derived) (Q/T) | 12.60 | % | 11.75 | % | 10.84 | % | |||||||||||||||||
| Tangible common equity-to-tangible assets ratio (S/U) | 11.76 | % | 10.91 | % | 9.96 | % | |||||||||||||||||
| Calculation of Tangible Book Value per Common Share | |||||||||||||||||||||||
| (Q) | Total common shareholders’ equity (GAAP) | $ | 1,104,253 | $ | 1,043,515 | $ | 924,250 | ||||||||||||||||
| (V) | Actual common shares outstanding | 24,514,383 | 24,507,023 | 24,429,083 | |||||||||||||||||||
| Book value per common share (GAAP-derived) (Q/V)*1000 | $ | 45.05 | $ | 42.58 | $ | 37.83 | |||||||||||||||||
| Tangible common book value per share (S/V)*1000 | $ | 41.62 | $ | 39.16 | $ | 34.40 | |||||||||||||||||
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