1st Source Corp. (SRCE, Financial) filed Quarterly Report for the period ended 2010-09-30.
1st Source Corp. has a market cap of $460 million; its shares were traded at around $18.95 with a P/E ratio of 19.4 and P/S ratio of 1.6. The dividend yield of 1st Source Corp. stocks is 3.2%.
As of September 30, 2010, total shareholders' equity was $596.32 million, up $26.00 million or 4.56% from the $570.32 million at December 31, 2009. In addition to net income of $28.68 million, other significant changes in shareholders equity during the first nine months of 2010 included $15.10 million of dividends paid and/or accrued. The accumulated other comprehensive income/(loss) component of shareholders equity totaled $16.22 million at September 30, 2010, compared to $5.09 million at December 31, 2009. The increase in accumulated other comprehensive income/(loss) during 2010 was primarily a result of changes in unrealized gain/(loss) on securities in the available-for-sale portfolio. Our equity-to-assets ratio was 13.16% as of September 30, 2010, compared to 12.56% at December 31, 2009. Book value per common share rose to $20.26 at September 30, 2010, from $19.30 at December 31, 2009.
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 68.67% at September 30, 2010 compared to 68.10% at December 31, 2009 and 70.11% at September 30, 2009. Cash and cash equivalents totaled $60.40 million at September 30, 2010 compared to $72.87 million at December 31, 2009 and $56.41 million at September 30, 2009. A term loan principal payment of $10.00 million will be due on October 30, 2010. The related line of credit agreement matures on October 30, 2010 and we do not intend to renew the credit facility. Refer to Note 11 of the Notes to the Consolidated Financial Statements for additional information. At September 30, 2010, the consolidated statement of financial condition was rate sensitive by $140.01 million more liabilities than assets scheduled to reprice within one year, or approximately 0.95%. Management believes that the present funding sources provide adequate liquidity to meet our cash flow needs.
Net income for the three and nine month periods ended September 30, 2010 was $11.20 million and $28.68 million respectively, compared to $6.73 million and $19.27 million for the same periods in 2009. Diluted net income per common share was $0.39 and $0.96 respectively, for the three and nine month periods ended September 30, 2010, compared to $0.21 and $0.60 for the same periods in 2009. Return on average common shareholders' equity was 6.52% for the nine months ended September 30, 2010, compared to 4.16% in 2009. The return on total average assets was 0.85% for the nine months ended September 30, 2010, compared to 0.57% in 2009.
During the three and nine month periods ended September 30, 2010, average earning assets increased $23.01 million or 0.55% and decreased $38.89 million or 0.92% respectively, over the comparable periods in 2009. Average interest-bearing liabilities decreased $32.52 million or 0.96% and $69.15 million or 2.00% respectively, for the three and nine month periods ended September 30, 2010 over the comparable periods one year ago. The yield on average earning assets increased 1 basis point to 4.85% for the third quarter of 2010 from 4.84% for the third quarter of 2009. The yield on average earning assets for the nine month period ended September 30, 2010 remained flat at 4.89% compared to the nine month period ended September 30, 2009. Although the overall rates earned on assets were relatively stable, there was a change in asset mix. Total cost of average interest-bearing liabilities decreased 53 basis points to 1.54% for the third quarter 2010 from 2.07% for the third quarter 2009. Total cost of average interest-bearing liabilities decreased 55 basis points to 1.63% for the nine months ended September 30, 2010, from 2.18% for the nine months ended September 30, 2009. The result to the net interest margin, or the difference between interest income on earning assets and interest expense on interest-bearing liabilities, was an increase of 46 basis points for both the three and nine month periods ended September 30, 2010 from September 30, 2009.
The largest contributor to the increase in the yield on average earning assets for the three months ended September 30, 2010, compared to the three months ended September 30, 2009, was a slight improvement in yields on loans and leases. Total average investment securities increased $69.28 million or 8.38% and $83.35 million or 10.18% respectively, for the three and nine month periods over one year ago. Average mortgages held for sale increased $3.66 million or 5.06% and decreased $45.77 million or 50.89% respectively, for the three and nine month periods ended September 30, 2010, over the comparable periods a year ago primarily due to fluctuations in refinance activity. Average net loans and leases decreased $0.92 million or 0.03% for the third quarter of 2010 from the third quarter of 2009 and $67.47 million or 2.12% for the nine months ended September 30, 2010 compared to the same period in 2009. 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, decreased $49.00 million or 37.63% and $9.01 million or 7.92% for the three and nine month periods ended September 30, 2010, over the comparable periods a year ago.
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1st Source Corp. has a market cap of $460 million; its shares were traded at around $18.95 with a P/E ratio of 19.4 and P/S ratio of 1.6. The dividend yield of 1st Source Corp. stocks is 3.2%.
Highlight of Business Operations:
Our total assets at September 30, 2010, were $4.53 billion, a decrease of $9.79 million or 0.22% from December 31, 2009. Total loans and leases were $3.11 billion, an increase of $19.03 million or 0.62% from December 31, 2009. Fed funds sold and interest bearing deposits with other banks were $79.08 million, a decrease of $62.08 million or 43.98% from December 31, 2009. Total investment securities, available for sale were $874.51 million which represented a decrease of $27.12 million or 3.01% and total deposits were $3.57 billion, a decrease of $86.27 million or 2.36% over the comparable figures at the end of 2009.As of September 30, 2010, total shareholders' equity was $596.32 million, up $26.00 million or 4.56% from the $570.32 million at December 31, 2009. In addition to net income of $28.68 million, other significant changes in shareholders equity during the first nine months of 2010 included $15.10 million of dividends paid and/or accrued. The accumulated other comprehensive income/(loss) component of shareholders equity totaled $16.22 million at September 30, 2010, compared to $5.09 million at December 31, 2009. The increase in accumulated other comprehensive income/(loss) during 2010 was primarily a result of changes in unrealized gain/(loss) on securities in the available-for-sale portfolio. Our equity-to-assets ratio was 13.16% as of September 30, 2010, compared to 12.56% at December 31, 2009. Book value per common share rose to $20.26 at September 30, 2010, from $19.30 at December 31, 2009.
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 68.67% at September 30, 2010 compared to 68.10% at December 31, 2009 and 70.11% at September 30, 2009. Cash and cash equivalents totaled $60.40 million at September 30, 2010 compared to $72.87 million at December 31, 2009 and $56.41 million at September 30, 2009. A term loan principal payment of $10.00 million will be due on October 30, 2010. The related line of credit agreement matures on October 30, 2010 and we do not intend to renew the credit facility. Refer to Note 11 of the Notes to the Consolidated Financial Statements for additional information. At September 30, 2010, the consolidated statement of financial condition was rate sensitive by $140.01 million more liabilities than assets scheduled to reprice within one year, or approximately 0.95%. Management believes that the present funding sources provide adequate liquidity to meet our cash flow needs.
Net income for the three and nine month periods ended September 30, 2010 was $11.20 million and $28.68 million respectively, compared to $6.73 million and $19.27 million for the same periods in 2009. Diluted net income per common share was $0.39 and $0.96 respectively, for the three and nine month periods ended September 30, 2010, compared to $0.21 and $0.60 for the same periods in 2009. Return on average common shareholders' equity was 6.52% for the nine months ended September 30, 2010, compared to 4.16% in 2009. The return on total average assets was 0.85% for the nine months ended September 30, 2010, compared to 0.57% in 2009.
During the three and nine month periods ended September 30, 2010, average earning assets increased $23.01 million or 0.55% and decreased $38.89 million or 0.92% respectively, over the comparable periods in 2009. Average interest-bearing liabilities decreased $32.52 million or 0.96% and $69.15 million or 2.00% respectively, for the three and nine month periods ended September 30, 2010 over the comparable periods one year ago. The yield on average earning assets increased 1 basis point to 4.85% for the third quarter of 2010 from 4.84% for the third quarter of 2009. The yield on average earning assets for the nine month period ended September 30, 2010 remained flat at 4.89% compared to the nine month period ended September 30, 2009. Although the overall rates earned on assets were relatively stable, there was a change in asset mix. Total cost of average interest-bearing liabilities decreased 53 basis points to 1.54% for the third quarter 2010 from 2.07% for the third quarter 2009. Total cost of average interest-bearing liabilities decreased 55 basis points to 1.63% for the nine months ended September 30, 2010, from 2.18% for the nine months ended September 30, 2009. The result to the net interest margin, or the difference between interest income on earning assets and interest expense on interest-bearing liabilities, was an increase of 46 basis points for both the three and nine month periods ended September 30, 2010 from September 30, 2009.
The largest contributor to the increase in the yield on average earning assets for the three months ended September 30, 2010, compared to the three months ended September 30, 2009, was a slight improvement in yields on loans and leases. Total average investment securities increased $69.28 million or 8.38% and $83.35 million or 10.18% respectively, for the three and nine month periods over one year ago. Average mortgages held for sale increased $3.66 million or 5.06% and decreased $45.77 million or 50.89% respectively, for the three and nine month periods ended September 30, 2010, over the comparable periods a year ago primarily due to fluctuations in refinance activity. Average net loans and leases decreased $0.92 million or 0.03% for the third quarter of 2010 from the third quarter of 2009 and $67.47 million or 2.12% for the nine months ended September 30, 2010 compared to the same period in 2009. 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, decreased $49.00 million or 37.63% and $9.01 million or 7.92% for the three and nine month periods ended September 30, 2010, over the comparable periods a year ago.
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