Slide 1: 1st Source Corporation Investor Presentation
Source. | 1Corporation Investor Presentation
Slide 2: Forward-looking Statement Disclosure
Except for historical information, the matters discussed may include “forward-looking statements.” Generally, words such as “believe,” “possible,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” “contemplate,” “seek,” “plan,” “assume,” “targeted,” “continue,” “remain,” “should,” “in
Slide 3: Non-GAAP Financial Disclaimer
This presentation contains financial information determined by methods other than those prescribed by accounting principles generally accepted in the United States ("GAAP'). Management uses these "non-GAAP" financial measures in its analysis of the Company's capital and performance. Management belie
Slide 4: 1st Source Corporation Company Overview
$4.8 billion bank holding company Headquartered in South Bend, IN, serving Northern Indiana and Southwest Michigan Celebrating 150 years, with a history dating to 1863 Diversified business model, offering personal and business banking, specialty finance, investment management, trust & estate
Slide 5: The 1st Source Mission
The Ist Source Mission is to help our clients achieve security, build wealth and realize their dreams. ACHIEVE DISTINCTIVE CONVENIENCE CONTINUE LEAN JOURNEY GROW PRIMARY RELATIONSHIPS. SUPERIOR FINANC!
Slide 6: Seasoned Leadership Team
Christopher J. Murphy III Chairman of the Board President and Chief Executive Officer (elected to Board of Directors in 1972) Seasoned Leadership Team SRCE Experience Years Experience Position Name President, 1st Source Bank Executive VP – Wealth Management, Private Banking, Insurance and Informatio
Slide 7: Community Banking Market Area
Retail Footprint Industry Focus Higher education Durable goods manufacturing RV & manufactured housing Regional medical hub Distribution hub Agriculture Medical devices #1 Deposit Market Share In Our Traditional 15 County Market Community Banking Market Area 7
Slide 8: Deposit Franchise
12.0% 13.4% 15.2% 17.2% 18.7% 19.3% %DDA Noninterest bearing DDA 19% CD & IRA 27% Savings & NOW 54% $ .54 $1.70 $1.72 $1.81 $1.93 $1.99 $1.61 $1.42 $1.30 $1.15 $1.08 $0.97 $0.43 $0.48 $0.54 $0.62 $0.69 $0.71 $0.00 $1.00 $2.00 $3.00 $4.00 2009 2010 2011 2012 2013 2014 Q1 Savings & Now CD & IRA Nonint
Slide 9: Business Mix
Aircraft financing $731M 43% Auto and light truck $389M 23% Construction equipment financing $353M 20% Medium and heavy duty truck $238M 14% Specialty Finance $1.7B 48%Personal Community Banking $0.6B 16% Business Community Banking $1.3B 36% Loan Portfolio (3/31/14) Specialty Finance Loans (3/31/14)
Slide 10: Specialty Finance Divisions
Aircraft Financing ($731M) − Aircraft financing consists of financings for new and used general aviation aircraft (including helicopters) for private and corporate aircraft users, aircraft distributors and dealers, air charter operators, air cargo carriers, and other aircraft operators Auto and
Slide 11: Loan Portfolio
Aircraft financing $731M 20% Commercial and agricultural loans $698M 20% Commercial real estate $589M 16% Auto and light truck $389M 11% Residential real estate $456M 13% Construction equipment financing $353M 10% Medium and heavy duty truck $238M 7% Consumer $125M 3% Aircraft financing $3.6M 14% Co
Slide 12: Net Interest Margin (FTE)
$37.9 $38.5 $38.4 $39.0 $38.2 $39.3 $41.6 $39.5 $39.1 3.77% 3.70% 3.63% 3.64% 3.64% 3.65% 3.79% 3.59% 3.59% 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% 3.60% 3.70% 3.80% 3.90% $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 $35.0 $40.0 $45.0 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Net Interes
Slide 13: Diverse Sources of Noninterest Income
Trust fees 23% Equipment rental income 21% Other income 18% Service charges on deposit accounts 11% Debit card income 12% Mortgage banking income 7% Insurance commissions 8% Noninterest income continues to be a stable and significant source of revenue Trust ($3.9B of AUM)(1) and equipment rental
Slide 14: Credit Quality
$70.4 $55.8 $50.5 $42.3 $48.4 $36.0 $40.3 $46.7 $35.9 1.61% 1.24% 1.12% 0.93% 1.06% 0.78% 0.87% 0.99% 0.75% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% $0 $25 $50 $75 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 NPA s / A sse ts ( %) Non per form ing Ass ets ($M ) Nonperforming Assets NPAs
Slide 15: Pre-tax, Pre-provision (PTPP) Net Income
$19.5 $21.2 $20.9 $19.3 $20.0 $23.2 $22.6 $18.4 $21.1 1.80% 1.90% 1.85% 1.69% 1.78% 2.02% 1.94% 1.57% 1.82% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 PTPP Net Income PTPP ROAA P TP P N et In com e ($ M ) P TP
Slide 16: Common Dividends per Share
$0.38 $0.45 $0.53 $0.56 $0.58 $0.59 $0.61 $0.64 $0.66 $0.68 $0.35 $0.00 $0.10 $0.20 $0.30 $0.40 $0.50 $0.60 $0.70 $0.80 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 YTD Common Dividends per Share 16
Slide 17: Strong Capital Position
8.43% 9.12% 10.18% 10.56% 10.76% 10.89% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 2009 2010 2011 2012 2013 2014 Q1 12.74% 10.39% 11.72% 11.47% 12.08% 12.15% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 2009 2010 2011 201 2013 2014 Q1 10.82% 11.47% 12.59% 12.66% 13.03% 13.11% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0%
Slide 18: Ownership Summary
Ownership Summary Source: SNL Financial and Company filings. Rank Institution (Top 10 Institutions) Shares % of Total 1 Dimensional Fund Advisors, Inc. 1,947,035 7.7% 2 BlackRock Fund Advisors 921,392 3.7% 3 Vanguard Group Inc. 609,956 2.4% 4 Bryn Mawr Capital Management Inc 538,694 2.1% 5 SSgA Fund
Slide 19: Historical Financial Highlights
Growing Loans Stable earnings Strong capital Well reserved Growing dividend Historical Financial Highlights 2011 FY 2012 FY 2013 FY 2013 FQ1 2013 FQ2 2013 FQ3 2013 FQ4 2014 FQ1 ($ in thousands except per share data) 12/31/11 12/31/12 12/31/13 3/31/13 6/30/13 9/30/13 12/31/13 3/31/14 Balanc
Slide 20: Performance Recognition
Performance Recognition Forbes The Banker eat-habet bree TOP 1000 nancial 5 Star “Superior” Rating Ranked #25 in 2013 based on WORLD BANKS 2013 ‘an analysis of asset quality, capital #859 on global Ist Highest rating possible. Based on capital ratio, adequacy and profitability it quai i BankDirector
Slide 21: Investment Considerations
Consistent and superior financial performance Comprehensive portfolio of products drives loan and revenue growth Diversification of product mix and geography with asset generation capability Leading market share in community banking markets Stable credit quality, strongly reserved Season