1st Source Corporation · NASDAQ:SRCE
1st Source — INVESTIndiana (September 2010)
34 slides from 1st Source's conference presentation, Sep 9, 2010
Slide 1: Form 8-K Current Report
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): September 7, 2010 1st Source Corporation (Exact name of registrant as specified in
Slide 2: Item 7.01 Regulation FD Disclosure
ITEM 7.01 Regulation FD Disclosure. The executive officers of 1st Source Corporation intend to use the materials filed herewith, in whole or in part, in one or more meetings with investors and analysts. A copy of the investor presentation is attached hereto as Exhibit 99.1. 1st Source Corporation do
Slide 3: INVESTIndiana
INVESTIndiana September 9, 2010 iBank iCorporation
Slide 4: Forward-looking Statement Disclosure
Forward-looking Statement Disclosure Except for historical information contained herein, the matters discussed in this document express “forward-looking statements.” Generally, the words “believe,” “expect,” “i estimate,” “anticipate,” “project,” “will” and you intend, similar expressions indicate f
Slide 5: Corporate Overview
Corporate Overview $4.5 billion community bank with international reach ¢ Personal and business banking, specialty finance, leasing, investment management, trust & estate planning, insurance sales, and mortgage banking operations ¢ Founded in 1863, headquartered in South Bend, Indiana ¢ Market cap -
Slide 6: 1st Source Strategy
1st Source Strategy ¢ Deliver personalized, community banking to individuals, businesses and institutions within northern Indiana and southwestern Michigan through knowledgeable, local members of the community ¢ Diversify and add growth through our national and international specialty finance market
Slide 7: Locations
Locations * 76 Banking Centers ¢ 94 Twenty-four hour ATMs * 22 Specialty Finance locations nationwide * 7 1st Source Insurance offices « 7 Trust & Wealth Management locations ———— iin pisource. ion
Slide 8: Market Area
Market Area CoMMUNITY BANK Deposits: $3.1 Brion Loans: $1.6 Bitton SPECIALTY FINANCE Deposits/FUNDING: $0.5 Bitton Loans: $1.5 Brion June 30, 2010 Georporation
Slide 9: Business Mix
Business Mix 6/30/10 Personal Community Banking Business Community Banking Specialty Finance $505 million $1.1 billion $1.5 billion ast Corporation
Slide 10: Market Area
Market Area
Slide 11: Specialty Finance
Specialty Finance _ $596 million $416 million $309 million $186 million Aircraft Auto, Light Truck = Construction Medium and Financing and Environmental Equipment Heavy Duty Truck Equipment 6/30/2010 a. ion
Slide 12: Community Banking
Community Banking / - a PMiciican pee 15 County MARKET Market HHs: 620,498 CLIENTS: 106,166 ~ PENETRATION: 17.1% BUSINESS: 66,512 Business CLIENTS: 18,016 PENETRATION: 27.1% FDIC Deposits: $3,590,578 Market SHARE: 13.4% L_ ) Ee Vy New Markets: KALAMAZOO | : LAFAYETTE Valparaiso Central a) Community
Slide 13: Community Bank Industry
Community Bank Industry Higher Education Regiona Medical Hub if “wy Medical Devices RE) ®)5 Auto Supply Mfg. ee [oes m®, Agriculture Steel Production Distribution Hub ctf RV & Manufactured Housing Source _ iCorporation
Slide 14: Deposit Market Share
Deposit Market Share 15-County Market $(000) 3,500,000 aut a == Ist Source Bank —— JPM Chase 2,500,000 —t—PNC 2,000,000 + i Fifth Third 1,500,000 4 =O Lake City TCU 1,000,000 500,000 T T T T T T T T T 7 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 <<. . ; Data as of 6/2009 - Highline Financial
Slide 15: Market Share
Market Share #1 market share in mortgage loans. #1 provider of SBA* loans in northwest Indiana ___ and southwest Michigan. #3 provider of loans for home improvement. -B-
Slide 16: Client Satisfaction
Client Satisfaction Local Newspapers’ Reader Polls ¢ “Favorite Bank in Michiana Region” by readers of The South Bend Tribune for the 7th consecutive year, 2010 « “Best of Marshall County” by readers of The Plymouth Pilot, 2009 ¢ “Best of the Best” by readers in southwestern Michigan, 2010 (Niles, Ca
Slide 17: Larry Lentych, Chief Financial Officer
Larry Lentych Chief Financial Officer eeorporation
Slide 18: Balance Sheet Highlights
Balance Sheet Highlights 12/31/09 6/30/10 Change ($ Millions) Total Assets $4,542.14 $4,531.3 (0.2)% Total Loans & Leases $3,093.2 $3,131.7 1.2% Total Deposits $3,652.5 $3,609.6 (1.2)% Total Common Equity $ 4654 $ 483.9 40% Total Common Equity to Assets 10.3% 10.7% - —— iin eeerporation
Slide 19: Second Quarter Earnings Highlights
Second Quarter Earnings Highlights 2nd Quarter Year-to-Date 2009 2010 Change 2009 2010 Change Net Income $ 6,283 $ 7,795 24.1% $ 12,534 $17,474 39.4% (000’s) EPCS (Diluted) ¢§ 019 $ 0.25 31.6% $ 039 $ 0.57 46.2% ROA 0.56% 0.69% - 0.56% 0.78% - ROCE 3.93% 5.06% - 4.12% 5.93% - ee tim eee ation
Slide 20: Net Interest Income
Net Interest Income m= Net Interest Income (FTE) ($MM) 40 35 30 25 20 15 134.03 34.26 34.24 31.64 328 —— Net Interest Margin (FTE) 4 33.03 pa 74.5 9 35.78 seit 4 4.0 | 3.5 | 3.0 2.5 1 2 2010 a. Corporat
Slide 21: Loan & Lease Quality
Loan & Lease Quality (% of Loans and Leases) —Nonperforming Assets — Net Charge-Offs ——Loan & Lease Loss Reserve Rolling Four Qtr Annual 3.5 3.15 3.0 | 2.5 + 2.0 + 1.5 + 1.0 - 0.5 + 0.0 T T T T 1 June Dec June Dec June -19-
Slide 22: Asset Quality — Net Charge-offs to Loans and Leases
Asset Quality — Net Charge-offs to Loans and Leases 3.00% - 2.00% + 1.00% + 0.00% - 72% 63% 2.84% 2.49% 2.34% 2.35% 1.88% | 1st Source 2009 2010Q1 All FDIC Insured Institutions 2009 2010Q1 $1 - $10B FDIC Chicago Institutions Region 2009 2010Q1 2009 2010Q1 Source -20-
Slide 23: Asset Quality — Noncurrent Assets plus OREO to Assets
Asset Quality — Noncurrent Assets plus OREO to Assets 3.32% 3.43% 3.59% 3.69% | 3.18% 3.22% 4.00% 5 3.00% + 2.20% 2.14% 2.00% + 1.00% + 0.00% - 1st Source 2009 Q4 2010Q1 << All FDIC Insured Institutions 2009Q4 201001 $1 - $10B FDIC Chicago Institutions Region 2009Q4 2010Q1 2009Q4 2010Q1 Ee orporatio
Slide 24: Noninterest Income
Noninterest Income 20.37 12.38 30.23 20.55 22.71 20.26 22.02 20.92 20.60 Total Noninterest ($MM) Income 30 | 24 + Gains & Losses 18 | Other Income Deposit fees 12 + Equipment Leasing aa 1-42 0.96 Bi (0.50) Mortgage Income Trust Fees 0 2 3 4 1 2 3 4 1 2 2008 2009 2010 ——— -22-
Slide 25: Diluted Net Income per Common Share
Diluted Net Income per Common Share $2.00 5 $1.75 44 63 1.65 $1.50 5 1.46 Ae 1.37 $1.25 1.08 ARS $1.00 4 0183 $0.75 4 pele $0.50 4 0.43 _ $0.25 + $0.00 4 1.72 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2009 2010 ytd ytd ———— — —: Preferred Stock Impact a. . Corporation -2B-
Slide 26: Common Dividends per Share
Common Dividends per Share $0.70 - $0.60 + 0.58 0.59 03 0:38 $0.50 4 0.45 $0.40 - 0.38 939 032 033 OS 0.30 $0.30 4 . $0.20 4 $0.10 4 $0.00 4 ae ee ee ee 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 ———— iin Compound Growth Rate: 7.57% a. . Corporation -24-
Slide 27: Why Invest in 1st Source?
Why Invest in 1st Source? iCorporation
Slide 28: Why 1st Source?
Why 1st Source? ¢ Strongly capitalized with TARP — Estimated without TARP + Risk-based capital Tier 1 16.58% 13.45% + Risk-based capital—total 17.87% 14.74% ¢ Stable credit quality, strongly reserved + 2.81% loan loss reserve + NPAs mainly collateralized ¢ Diversification of income mix + 37% of net
Slide 29: Why 1st Source?
Why 1st Source? Dominant local market share Improving cost efficiencies Recently improving margins Historically consistent and growing dividend Source _ iin ‘corporation -27-
Slide 30: Why 1st Source?
Why 1st Source? « No sub-prime exposure ¢ No highly inflated real estate markets « Majority of commercial real estate lending is owner occupied Source _ iin ‘corporation -28-
Slide 31: Why 1st Source? The Top Performers
Why 1st Source? The Top 150 Performers * #8—- 2010 Bank Performance Scorecard « Bank Director Magazine, banks over $3.0 billion + Based on Profitability, Capital Adequacy, and Asset Quality « Up from # 30 in 2009, # 43 in 2008 and # 65 in 2007 eKKAY Five-Star Rating from Bauer Financial + Highest ra
Slide 32: Why 1st Source? Most Trustworthy Public Companies
Why 1st Source? 100 Most Trustworthy Public Companies Forbes, April 2009 Selected out of 12,000 publicly traded companies Recognized for transparent and conservative accounting practices, solid corporate governance and management, according to rankings compiled by Audit Integrity. “These companies d
Slide 33: Contact Information
Contact Information ¢ 1st Source common stock is traded on the NASDAQ Global Select Market under “SRCE” ¢ Website: www.1stsource.com ¢ Investor Relations: Melissa Collins 574-235-2495 ee Source _ iin ‘corporation
Slide 34: Questions?
Questions? iCorporation