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Indiana
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35-1068133
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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100 North Michigan Street
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South Bend,
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IN
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46601
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common Stock — without par value
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SRCE
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The NASDAQ Stock Market LLC
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Large accelerated filer
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x
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Accelerated filer
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☐
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Non-accelerated filer
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☐
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Certifications
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Period
|
|
Total Number of
Shares Purchased
|
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Average Price
Paid Per Share
|
|
Total Number of
Shares Purchased as
Part of Publicly Announced
Plans or Programs*
|
|
Maximum Number (or Approximate
Dollar Value) of Shares that
may yet be Purchased Under
the Plans or Programs
|
|||||
October 01 - 31, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
859,374
|
|
November 01 - 30, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
859,374
|
|
|
December 01 - 31, 2019
|
|
—
|
|
|
—
|
|
|
—
|
|
|
859,374
|
|
|
(Dollars in thousands, except per share amounts)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Interest income
|
|
$
|
282,877
|
|
|
$
|
257,316
|
|
|
$
|
212,385
|
|
|
$
|
191,760
|
|
|
$
|
184,684
|
|
Interest expense
|
|
59,011
|
|
|
43,410
|
|
|
26,754
|
|
|
22,101
|
|
|
18,163
|
|
|||||
Net interest income
|
|
223,866
|
|
|
213,906
|
|
|
185,631
|
|
|
169,659
|
|
|
166,521
|
|
|||||
Provision for loan and lease losses
|
|
15,833
|
|
|
19,462
|
|
|
8,980
|
|
|
5,833
|
|
|
2,160
|
|
|||||
Net interest income after provision for loan and lease losses
|
|
208,033
|
|
|
194,444
|
|
|
176,651
|
|
|
163,826
|
|
|
164,361
|
|
|||||
Noninterest income
|
|
101,130
|
|
|
97,050
|
|
|
98,706
|
|
|
88,945
|
|
|
83,316
|
|
|||||
Noninterest expense
|
|
189,009
|
|
|
186,467
|
|
|
173,997
|
|
|
163,645
|
|
|
159,114
|
|
|||||
Income before income taxes
|
|
120,154
|
|
|
105,027
|
|
|
101,360
|
|
|
89,126
|
|
|
88,563
|
|
|||||
Income taxes
|
|
28,139
|
|
|
22,613
|
|
|
33,309
|
|
|
31,340
|
|
|
31,077
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|
|||||
Net income
|
|
92,015
|
|
|
82,414
|
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|
68,051
|
|
|
57,786
|
|
|
57,486
|
|
|||||
Net income available to common shareholders
|
|
$
|
91,960
|
|
|
$
|
82,414
|
|
|
$
|
68,051
|
|
|
$
|
57,786
|
|
|
$
|
57,486
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Assets at year-end
|
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$
|
6,622,776
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|
|
$
|
6,293,745
|
|
|
$
|
5,887,284
|
|
|
$
|
5,486,268
|
|
|
$
|
5,187,916
|
|
Long-term debt and mandatorily redeemable securities at year-end
|
|
71,639
|
|
|
71,123
|
|
|
70,060
|
|
|
74,308
|
|
|
57,379
|
|
|||||
Shareholders’ equity at year-end
|
|
828,277
|
|
|
762,082
|
|
|
718,537
|
|
|
672,650
|
|
|
644,053
|
|
|||||
Basic net income per common share
|
|
3.57
|
|
|
3.16
|
|
|
2.60
|
|
|
2.22
|
|
|
2.17
|
|
|||||
Diluted net income per common share
|
|
3.57
|
|
|
3.16
|
|
|
2.60
|
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2.22
|
|
|
2.17
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|
|||||
Cash dividends per common share
|
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1.100
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|
0.960
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|
0.760
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0.720
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|
0.671
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|
|||||
Dividend payout ratio
|
|
30.81
|
%
|
|
30.48
|
%
|
|
29.23
|
%
|
|
32.45
|
%
|
|
30.85
|
%
|
|||||
Return on average assets
|
|
1.41
|
%
|
|
1.34
|
%
|
|
1.21
|
%
|
|
1.08
|
%
|
|
1.15
|
%
|
|||||
Return on average common shareholders’ equity
|
|
11.50
|
%
|
|
11.09
|
%
|
|
9.69
|
%
|
|
8.71
|
%
|
|
9.05
|
%
|
|||||
Average common shareholders’ equity to average assets
|
|
12.25
|
%
|
|
12.08
|
%
|
|
12.46
|
%
|
|
12.38
|
%
|
|
12.72
|
%
|
•
|
Local, regional, national, and international economic conditions and the impact they may have on us and our clients and our assessment of that impact.
|
•
|
Changes in the level of nonperforming assets and charge-offs.
|
•
|
Changes in estimates of future cash reserve requirements based upon the periodic review thereof under relevant regulatory and accounting requirements.
|
•
|
The effects of and changes in trade and monetary and fiscal policies and laws, including the interest rate policies of the Federal Reserve Board.
|
•
|
Inflation, interest rate, securities market, and monetary fluctuations.
|
•
|
Political instability.
|
•
|
Acts of war or terrorism.
|
•
|
Substantial changes in the cost of fuel.
|
•
|
The timely development and acceptance of new products and services and perceived overall value of these products and services by others.
|
•
|
Changes in consumer spending, borrowings, and savings habits.
|
•
|
Changes in the financial performance and/or condition of our borrowers.
|
•
|
Technological changes.
|
•
|
Acquisitions and integration of acquired businesses.
|
•
|
The ability to increase market share and control expenses.
|
•
|
The ability to expand effectively into new markets that we target.
|
•
|
Changes in the competitive environment among bank holding companies.
|
•
|
The effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities, and insurance) with which we and our subsidiaries must comply.
|
•
|
The effect of changes in accounting policies and practices and auditing requirements, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters.
|
•
|
Changes in our organization, compensation, and benefit plans.
|
•
|
The costs and effects of legal and regulatory developments including the resolution of legal proceedings or regulatory or other governmental inquires and the results of regulatory examinations or reviews.
|
•
|
Greater than expected costs or difficulties related to the integration of new products and lines of business.
|
•
|
Our success at managing the risks described in Item 1A. Risk Factors.
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||||||||||||||
(Dollars in thousands)
|
|
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
|
|
$
|
945,396
|
|
|
$
|
20,946
|
|
|
2.22
|
%
|
|
$
|
861,733
|
|
|
$
|
19,356
|
|
|
2.25
|
%
|
|
$
|
734,291
|
|
|
$
|
13,853
|
|
|
1.89
|
%
|
Tax-exempt(1)
|
|
69,263
|
|
|
1,662
|
|
|
2.40
|
%
|
|
90,079
|
|
|
2,293
|
|
|
2.55
|
%
|
|
120,588
|
|
|
3,587
|
|
|
2.97
|
%
|
||||||
Mortgages held for sale
|
|
15,601
|
|
|
610
|
|
|
3.91
|
%
|
|
8,190
|
|
|
372
|
|
|
4.54
|
%
|
|
10,754
|
|
|
429
|
|
|
3.99
|
%
|
||||||
Loans and leases, net of unearned discount(1)
|
|
5,000,161
|
|
|
258,113
|
|
|
5.16
|
%
|
|
4,755,256
|
|
|
234,450
|
|
|
4.93
|
%
|
|
4,333,375
|
|
|
194,918
|
|
|
4.50
|
%
|
||||||
Other investments
|
|
74,252
|
|
|
2,232
|
|
|
3.01
|
%
|
|
46,503
|
|
|
1,648
|
|
|
3.54
|
%
|
|
52,086
|
|
|
1,393
|
|
|
2.67
|
%
|
||||||
Total earning assets(1)
|
|
6,104,673
|
|
|
283,563
|
|
|
4.65
|
%
|
|
5,761,761
|
|
|
258,119
|
|
|
4.48
|
%
|
|
5,251,094
|
|
|
214,180
|
|
|
4.08
|
%
|
||||||
Cash and due from banks
|
|
67,726
|
|
|
|
|
|
|
|
|
64,853
|
|
|
|
|
|
|
|
|
62,137
|
|
|
|
|
|
|
|
||||||
Reserve for loan and lease losses
|
|
(105,340
|
)
|
|
|
|
|
|
|
|
(99,258
|
)
|
|
|
|
|
|
|
|
(92,187
|
)
|
|
|
|
|
|
|
||||||
Other assets
|
|
461,215
|
|
|
|
|
|
|
|
|
424,083
|
|
|
|
|
|
|
|
|
417,278
|
|
|
|
|
|
|
|
||||||
Total assets
|
|
$
|
6,528,274
|
|
|
|
|
|
|
|
|
$
|
6,151,439
|
|
|
|
|
|
|
|
|
$
|
5,638,322
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest-bearing deposits
|
|
$
|
4,105,097
|
|
|
$
|
50,495
|
|
|
1.23
|
%
|
|
$
|
3,893,999
|
|
|
$
|
34,631
|
|
|
0.89
|
%
|
|
$
|
3,510,197
|
|
|
$
|
19,202
|
|
|
0.55
|
%
|
Short-term borrowings
|
|
205,911
|
|
|
1,934
|
|
|
0.94
|
%
|
|
265,041
|
|
|
2,838
|
|
|
1.07
|
%
|
|
245,235
|
|
|
1,115
|
|
|
0.45
|
%
|
||||||
Subordinated notes
|
|
58,764
|
|
|
3,677
|
|
|
6.26
|
%
|
|
58,764
|
|
|
3,625
|
|
|
6.17
|
%
|
|
58,764
|
|
|
4,002
|
|
|
6.81
|
%
|
||||||
Long-term debt and mandatorily redeemable securities
|
|
71,133
|
|
|
2,905
|
|
|
4.08
|
%
|
|
70,813
|
|
|
2,316
|
|
|
3.27
|
%
|
|
74,973
|
|
|
2,435
|
|
|
3.25
|
%
|
||||||
Total interest-bearing liabilities
|
|
4,440,905
|
|
|
59,011
|
|
|
1.33
|
%
|
|
4,288,617
|
|
|
43,410
|
|
|
1.01
|
%
|
|
3,889,169
|
|
|
26,754
|
|
|
0.69
|
%
|
||||||
Noninterest-bearing deposits
|
|
1,171,639
|
|
|
|
|
|
|
|
|
1,069,664
|
|
|
|
|
|
|
|
|
983,050
|
|
|
|
|
|
|
|
||||||
Other liabilities
|
|
106,945
|
|
|
|
|
|
|
|
|
49,791
|
|
|
|
|
|
|
|
|
63,684
|
|
|
|
|
|
|
|
||||||
Shareholders’ equity
|
|
799,736
|
|
|
|
|
|
|
|
|
743,173
|
|
|
|
|
|
|
|
|
702,419
|
|
|
|
|
|
|
|
||||||
Noncontrolling interests
|
|
9,049
|
|
|
|
|
|
|
194
|
|
|
|
|
|
|
—
|
|
|
|
|
|
||||||||||||
Total liabilities and equity
|
|
$
|
6,528,274
|
|
|
|
|
|
|
|
|
$
|
6,151,439
|
|
|
|
|
|
|
|
|
$
|
5,638,322
|
|
|
|
|
|
|
|
|||
Less: Fully tax-equivalent adjustments
|
|
|
|
(686
|
)
|
|
|
|
|
|
(803
|
)
|
|
|
|
|
|
(1,795
|
)
|
|
|
||||||||||||
Net interest income/margin (GAAP-derived)(1)
|
|
|
|
|
$
|
223,866
|
|
|
3.67
|
%
|
|
|
|
|
$
|
213,906
|
|
|
3.71
|
%
|
|
|
|
|
$
|
185,631
|
|
|
3.54
|
%
|
|||
Fully tax-equivalent adjustments
|
|
|
|
686
|
|
|
|
|
|
|
803
|
|
|
|
|
|
|
1,795
|
|
|
|
||||||||||||
Net interest income/margin - FTE(1)
|
|
|
|
|
$
|
224,552
|
|
|
3.68
|
%
|
|
|
|
|
$
|
214,709
|
|
|
3.73
|
%
|
|
|
|
|
$
|
187,426
|
|
|
3.57
|
%
|
(Dollars in thousands)
|
2019
|
2018
|
2017
|
|||||||
Calculation of Net Interest Margin
|
|
|
|
|||||||
(A)
|
Interest income (GAAP)
|
$
|
282,877
|
|
$
|
257,316
|
|
$
|
212,385
|
|
|
Fully tax-equivalent adjustments:
|
|
|
|
||||||
(B)
|
- Loans and leases
|
375
|
|
367
|
|
621
|
|
|||
(C)
|
- Tax-exempt investment securities
|
311
|
|
436
|
|
1,174
|
|
|||
(D)
|
Interest income - FTE (A+B+C)
|
283,563
|
|
258,119
|
|
214,180
|
|
|||
(E)
|
Interest expense (GAAP)
|
59,011
|
|
43,410
|
|
26,754
|
|
|||
(F)
|
Net interest income (GAAP) (A-E)
|
223,866
|
|
213,906
|
|
185,631
|
|
|||
(G)
|
Net interest income - FTE (D-E)
|
224,552
|
|
214,709
|
|
187,426
|
|
|||
(H)
|
Total earning assets
|
$
|
6,104,673
|
|
$
|
5,761,761
|
|
$
|
5,251,094
|
|
|
Net interest margin (GAAP-derived) (F/H)
|
3.67
|
%
|
3.71
|
%
|
3.54
|
%
|
|||
|
Net interest margin - FTE (G/H)
|
3.68
|
%
|
3.73
|
%
|
3.57
|
%
|
|
|
Increase (Decrease) due to
|
|
|
||||||||
(Dollars in thousands)
|
|
Volume
|
|
Rate
|
|
Net
|
||||||
2019 compared to 2018
|
|
|
|
|
|
|
|
|
|
|||
Interest earned on:
|
|
|
|
|
|
|
|
|
|
|||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|||
Taxable
|
|
$
|
1,857
|
|
|
$
|
(267
|
)
|
|
$
|
1,590
|
|
Tax-exempt
|
|
(506
|
)
|
|
(125
|
)
|
|
(631
|
)
|
|||
Mortgages held for sale
|
|
296
|
|
|
(58
|
)
|
|
238
|
|
|||
Loans and leases, net of unearned discount
|
|
12,371
|
|
|
11,292
|
|
|
23,663
|
|
|||
Other investments
|
|
864
|
|
|
(280
|
)
|
|
584
|
|
|||
Total earning assets
|
|
$
|
14,882
|
|
|
$
|
10,562
|
|
|
$
|
25,444
|
|
Interest paid on:
|
|
|
|
|
|
|
|
|
|
|||
Interest-bearing deposits
|
|
$
|
1,967
|
|
|
$
|
13,897
|
|
|
$
|
15,864
|
|
Short-term borrowings
|
|
(583
|
)
|
|
(321
|
)
|
|
(904
|
)
|
|||
Subordinated notes
|
|
—
|
|
|
52
|
|
|
52
|
|
|||
Long-term debt and mandatorily redeemable securities
|
|
11
|
|
|
578
|
|
|
589
|
|
|||
Total interest-bearing liabilities
|
|
$
|
1,395
|
|
|
$
|
14,206
|
|
|
$
|
15,601
|
|
Net interest income - FTE
|
|
$
|
13,487
|
|
|
$
|
(3,644
|
)
|
|
$
|
9,843
|
|
|
|
|
|
|
|
|
||||||
2018 compared to 2017
|
|
|
|
|
|
|
|
|
|
|||
Interest earned on:
|
|
|
|
|
|
|
|
|
|
|||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|||
Taxable
|
|
$
|
2,623
|
|
|
$
|
2,880
|
|
|
$
|
5,503
|
|
Tax-exempt
|
|
(824
|
)
|
|
(470
|
)
|
|
(1,294
|
)
|
|||
Mortgages held for sale
|
|
(111
|
)
|
|
54
|
|
|
(57
|
)
|
|||
Loans and leases, net of unearned discount
|
|
19,894
|
|
|
19,638
|
|
|
39,532
|
|
|||
Other investments
|
|
(161
|
)
|
|
416
|
|
|
255
|
|
|||
Total earning assets
|
|
$
|
21,421
|
|
|
$
|
22,518
|
|
|
$
|
43,939
|
|
Interest paid on:
|
|
|
|
|
|
|
|
|
|
|||
Interest-bearing deposits
|
|
$
|
2,295
|
|
|
$
|
13,134
|
|
|
$
|
15,429
|
|
Short-term borrowings
|
|
97
|
|
|
1,626
|
|
|
1,723
|
|
|||
Subordinated notes
|
|
—
|
|
|
(377
|
)
|
|
(377
|
)
|
|||
Long-term debt and mandatorily redeemable securities
|
|
(136
|
)
|
|
17
|
|
|
(119
|
)
|
|||
Total interest-bearing liabilities
|
|
$
|
2,256
|
|
|
$
|
14,400
|
|
|
$
|
16,656
|
|
Net interest income - FTE
|
|
$
|
19,165
|
|
|
$
|
8,118
|
|
|
$
|
27,283
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|||
Trust and wealth advisory
|
|
$
|
20,692
|
|
|
$
|
21,071
|
|
|
$
|
20,980
|
|
Service charges on deposit accounts
|
|
11,010
|
|
|
10,454
|
|
|
10,589
|
|
|||
Debit card
|
|
14,209
|
|
|
13,369
|
|
|
11,809
|
|
|||
Mortgage banking
|
|
4,698
|
|
|
3,844
|
|
|
4,796
|
|
|||
Insurance commissions
|
|
6,761
|
|
|
6,502
|
|
|
5,889
|
|
|||
Equipment rental
|
|
30,741
|
|
|
31,793
|
|
|
30,381
|
|
|||
(Losses) gains on investment securities available-for-sale
|
|
—
|
|
|
(345
|
)
|
|
4,340
|
|
|||
Other
|
|
13,019
|
|
|
10,362
|
|
|
9,922
|
|
|||
Total noninterest income
|
|
$
|
101,130
|
|
|
$
|
97,050
|
|
|
$
|
98,706
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits
|
|
$
|
97,098
|
|
|
$
|
93,857
|
|
|
$
|
86,912
|
|
Net occupancy
|
|
10,528
|
|
|
10,041
|
|
|
10,624
|
|
|||
Furniture and equipment
|
|
24,815
|
|
|
23,433
|
|
|
20,769
|
|
|||
Depreciation — leased equipment
|
|
25,128
|
|
|
26,248
|
|
|
25,215
|
|
|||
Professional fees
|
|
6,952
|
|
|
7,680
|
|
|
6,810
|
|
|||
Supplies and communications
|
|
6,454
|
|
|
6,320
|
|
|
5,355
|
|
|||
FDIC and other insurance
|
|
1,795
|
|
|
2,923
|
|
|
2,537
|
|
|||
Business development and marketing
|
|
6,303
|
|
|
6,112
|
|
|
7,477
|
|
|||
Loan and lease collection and repossession
|
|
3,402
|
|
|
3,375
|
|
|
2,724
|
|
|||
Other
|
|
6,534
|
|
|
6,478
|
|
|
5,574
|
|
|||
Total noninterest expense
|
|
$
|
189,009
|
|
|
$
|
186,467
|
|
|
$
|
173,997
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Commercial and agricultural
|
|
$
|
1,132,791
|
|
|
$
|
1,073,205
|
|
|
$
|
929,997
|
|
|
$
|
812,264
|
|
|
$
|
744,749
|
|
Auto and light truck
|
|
588,807
|
|
|
559,987
|
|
|
496,816
|
|
|
411,764
|
|
|
425,236
|
|
|||||
Medium and heavy duty truck
|
|
294,824
|
|
|
283,544
|
|
|
296,935
|
|
|
294,790
|
|
|
278,254
|
|
|||||
Aircraft
|
|
784,040
|
|
|
803,111
|
|
|
844,657
|
|
|
802,414
|
|
|
778,012
|
|
|||||
Construction equipment
|
|
705,451
|
|
|
645,239
|
|
|
563,437
|
|
|
495,925
|
|
|
455,565
|
|
|||||
Commercial real estate
|
|
908,177
|
|
|
809,886
|
|
|
741,568
|
|
|
719,170
|
|
|
700,268
|
|
|||||
Residential real estate and home equity
|
|
532,003
|
|
|
523,855
|
|
|
526,122
|
|
|
521,931
|
|
|
490,468
|
|
|||||
Consumer
|
|
139,434
|
|
|
136,637
|
|
|
128,146
|
|
|
129,813
|
|
|
122,140
|
|
|||||
Total loans and leases
|
|
$
|
5,085,527
|
|
|
$
|
4,835,464
|
|
|
$
|
4,527,678
|
|
|
$
|
4,188,071
|
|
|
$
|
3,994,692
|
|
(Dollars in thousands)
|
|
0-1 Year
|
|
1-5 Years
|
|
Over 5 Years
|
|
Total
|
||||||||
Commercial and agricultural
|
|
$
|
519,459
|
|
|
$
|
491,359
|
|
|
$
|
121,973
|
|
|
$
|
1,132,791
|
|
Auto and light truck
|
|
218,900
|
|
|
361,295
|
|
|
8,612
|
|
|
588,807
|
|
||||
Medium and heavy duty truck
|
|
99,054
|
|
|
187,127
|
|
|
8,643
|
|
|
294,824
|
|
||||
Aircraft
|
|
198,796
|
|
|
525,132
|
|
|
60,112
|
|
|
784,040
|
|
||||
Construction equipment
|
|
227,773
|
|
|
457,769
|
|
|
19,909
|
|
|
705,451
|
|
||||
Total
|
|
$
|
1,263,982
|
|
|
$
|
2,022,682
|
|
|
$
|
219,249
|
|
|
$
|
3,505,913
|
|
Rate Sensitivity (Dollars in thousands)
|
|
Fixed Rate
|
|
Variable Rate
|
|
Total
|
||||||
1 – 5 Years
|
|
$
|
1,456,088
|
|
|
$
|
566,594
|
|
|
$
|
2,022,682
|
|
Over 5 Years
|
|
54,572
|
|
|
164,677
|
|
|
219,249
|
|
|||
Total
|
|
$
|
1,510,660
|
|
|
$
|
731,271
|
|
|
$
|
2,241,931
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Amounts of loans and leases outstanding at end of period
|
|
$
|
5,085,527
|
|
|
$
|
4,835,464
|
|
|
$
|
4,527,678
|
|
|
$
|
4,188,071
|
|
|
$
|
3,994,692
|
|
Average amount of net loans and leases outstanding during period
|
|
$
|
5,000,161
|
|
|
$
|
4,755,256
|
|
|
$
|
4,333,375
|
|
|
$
|
4,113,508
|
|
|
$
|
3,837,149
|
|
Balance of reserve for loan and lease losses at beginning of period
|
|
$
|
100,469
|
|
|
$
|
94,883
|
|
|
$
|
88,543
|
|
|
$
|
88,112
|
|
|
$
|
85,068
|
|
Charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and agricultural
|
|
1,040
|
|
|
229
|
|
|
2,415
|
|
|
547
|
|
|
3,489
|
|
|||||
Auto and light truck
|
|
991
|
|
|
3,308
|
|
|
774
|
|
|
4
|
|
|
24
|
|
|||||
Medium and heavy duty truck
|
|
1,132
|
|
|
23
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Aircraft
|
|
3,066
|
|
|
12,222
|
|
|
1,872
|
|
|
6,123
|
|
|
244
|
|
|||||
Construction equipment
|
|
238
|
|
|
288
|
|
|
164
|
|
|
128
|
|
|
—
|
|
|||||
Commercial real estate
|
|
5
|
|
|
70
|
|
|
344
|
|
|
32
|
|
|
—
|
|
|||||
Residential real estate and home equity
|
|
53
|
|
|
63
|
|
|
124
|
|
|
219
|
|
|
295
|
|
|||||
Consumer
|
|
1,066
|
|
|
909
|
|
|
836
|
|
|
888
|
|
|
658
|
|
|||||
Total charge-offs
|
|
7,591
|
|
|
17,112
|
|
|
6,529
|
|
|
7,941
|
|
|
4,710
|
|
|||||
Recoveries:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and agricultural
|
|
664
|
|
|
222
|
|
|
984
|
|
|
509
|
|
|
851
|
|
|||||
Auto and light truck
|
|
97
|
|
|
68
|
|
|
1,153
|
|
|
253
|
|
|
380
|
|
|||||
Medium and heavy duty truck
|
|
32
|
|
|
—
|
|
|
—
|
|
|
10
|
|
|
28
|
|
|||||
Aircraft
|
|
1,143
|
|
|
2,499
|
|
|
227
|
|
|
528
|
|
|
802
|
|
|||||
Construction equipment
|
|
160
|
|
|
100
|
|
|
298
|
|
|
461
|
|
|
434
|
|
|||||
Commercial real estate
|
|
75
|
|
|
53
|
|
|
851
|
|
|
469
|
|
|
2,807
|
|
|||||
Residential real estate and home equity
|
|
85
|
|
|
23
|
|
|
109
|
|
|
31
|
|
|
34
|
|
|||||
Consumer
|
|
287
|
|
|
271
|
|
|
267
|
|
|
278
|
|
|
258
|
|
|||||
Total recoveries
|
|
2,543
|
|
|
3,236
|
|
|
3,889
|
|
|
2,539
|
|
|
5,594
|
|
|||||
Net charge-offs (recoveries)
|
|
5,048
|
|
|
13,876
|
|
|
2,640
|
|
|
5,402
|
|
|
(884
|
)
|
|||||
Provision for loan and lease losses
|
|
15,833
|
|
|
19,462
|
|
|
8,980
|
|
|
5,833
|
|
|
2,160
|
|
|||||
Balance at end of period
|
|
$
|
111,254
|
|
|
$
|
100,469
|
|
|
$
|
94,883
|
|
|
$
|
88,543
|
|
|
$
|
88,112
|
|
Ratio of net charge-offs (recoveries) to average net loans and leases outstanding
|
|
0.10
|
%
|
|
0.29
|
%
|
|
0.06
|
%
|
|
0.13
|
%
|
|
(0.02
|
)%
|
|||||
Ratio of reserve for loan and lease losses to net loans and leases outstanding end of period
|
|
2.19
|
%
|
|
2.08
|
%
|
|
2.10
|
%
|
|
2.11
|
%
|
|
2.21
|
%
|
|||||
Coverage ratio of reserve for loan and lease losses to nonperforming loans and leases
|
|
1,101.74
|
%
|
|
355.96
|
%
|
|
477.66
|
%
|
|
435.68
|
%
|
|
686.23
|
%
|
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||
Commercial and agricultural
|
|
0.03
|
%
|
|
—
|
%
|
|
0.16
|
%
|
|
—
|
%
|
|
0.36
|
%
|
Auto and light truck
|
|
0.15
|
|
|
0.60
|
|
|
(0.08
|
)
|
|
(0.06
|
)
|
|
(0.08
|
)
|
Medium and heavy duty truck
|
|
0.38
|
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
Aircraft
|
|
0.24
|
|
|
1.15
|
|
|
0.21
|
|
|
0.69
|
|
|
(0.07
|
)
|
Construction equipment
|
|
0.01
|
|
|
0.03
|
|
|
(0.03
|
)
|
|
(0.07
|
)
|
|
(0.10
|
)
|
Commercial real estate
|
|
(0.01
|
)
|
|
—
|
|
|
(0.07
|
)
|
|
(0.06
|
)
|
|
(0.44
|
)
|
Residential real estate and home equity
|
|
(0.01
|
)
|
|
0.01
|
|
|
—
|
|
|
0.04
|
|
|
0.05
|
|
Consumer
|
|
0.57
|
|
|
0.48
|
|
|
0.44
|
|
|
0.49
|
|
|
0.33
|
|
Total net charge-offs (recoveries) to average portfolio loans and leases
|
|
0.10
|
%
|
|
0.29
|
%
|
|
0.06
|
%
|
|
0.13
|
%
|
|
(0.02
|
)%
|
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|||||||||||||||||||||||||
(Dollars in thousands)
|
|
Reserve Amount
|
|
Percentage of Loans and Leases in Each Category to Total Loans and Leases
|
|
Reserve Amount
|
|
Percentage of Loans and Leases in Each Category to Total Loans and Leases
|
|
Reserve Amount
|
|
Percentage of Loans and Leases in Each Category to Total Loans and Leases
|
|
Reserve Amount
|
|
Percentage of Loans and Leases in Each Category to Total Loans and Leases
|
|
Reserve Amount
|
|
Percentage of Loans and Leases in Each Category to Total Loans and Leases
|
|||||||||||||||
Commercial and agricultural
|
|
$
|
23,671
|
|
|
22.27
|
%
|
|
$
|
17,063
|
|
|
22.20
|
%
|
|
$
|
16,228
|
|
|
20.54
|
%
|
|
$
|
14,668
|
|
|
19.40
|
%
|
|
$
|
15,456
|
|
|
18.64
|
%
|
Auto and light truck
|
|
14,400
|
|
|
11.58
|
|
|
14,689
|
|
|
11.58
|
|
|
10,103
|
|
|
10.97
|
|
|
8,064
|
|
|
9.83
|
|
|
9,269
|
|
|
10.64
|
|
|||||
Medium and heavy duty truck
|
|
4,612
|
|
|
5.80
|
|
|
4,303
|
|
|
5.86
|
|
|
4,844
|
|
|
6.56
|
|
|
4,740
|
|
|
7.04
|
|
|
4,699
|
|
|
6.97
|
|
|||||
Aircraft
|
|
31,058
|
|
|
15.42
|
|
|
33,047
|
|
|
16.61
|
|
|
34,619
|
|
|
18.66
|
|
|
34,352
|
|
|
19.16
|
|
|
32,373
|
|
|
19.48
|
|
|||||
Construction equipment
|
|
14,120
|
|
|
13.87
|
|
|
10,922
|
|
|
13.34
|
|
|
9,343
|
|
|
12.44
|
|
|
8,207
|
|
|
11.84
|
|
|
7,592
|
|
|
11.40
|
|
|||||
Commercial real estate
|
|
18,350
|
|
|
17.86
|
|
|
15,705
|
|
|
16.75
|
|
|
14,792
|
|
|
16.38
|
|
|
13,677
|
|
|
17.17
|
|
|
13,762
|
|
|
17.53
|
|
|||||
Residential real estate and home equity
|
|
3,609
|
|
|
10.46
|
|
|
3,425
|
|
|
10.83
|
|
|
3,666
|
|
|
11.62
|
|
|
3,550
|
|
|
12.46
|
|
|
3,662
|
|
|
12.28
|
|
|||||
Consumer
|
|
1,434
|
|
|
2.74
|
|
|
1,315
|
|
|
2.83
|
|
|
1,288
|
|
|
2.83
|
|
|
1,285
|
|
|
3.10
|
|
|
1,299
|
|
|
3.06
|
|
|||||
Total
|
|
$
|
111,254
|
|
|
100.00
|
%
|
|
$
|
100,469
|
|
|
100.00
|
%
|
|
$
|
94,883
|
|
|
100.00
|
%
|
|
$
|
88,543
|
|
|
100.00
|
%
|
|
$
|
88,112
|
|
|
100.00
|
%
|
Nonperforming assets at December 31 (Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Loans past due over 90 days
|
|
$
|
309
|
|
|
$
|
366
|
|
|
$
|
459
|
|
|
$
|
416
|
|
|
$
|
122
|
|
Nonaccrual loans and leases:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and agricultural
|
|
969
|
|
|
2,653
|
|
|
2,603
|
|
|
3,981
|
|
|
4,283
|
|
|||||
Auto and light truck
|
|
1,250
|
|
|
11,374
|
|
|
8,041
|
|
|
166
|
|
|
46
|
|
|||||
Medium and heavy duty truck
|
|
1,074
|
|
|
106
|
|
|
371
|
|
|
—
|
|
|
—
|
|
|||||
Aircraft
|
|
875
|
|
|
7,561
|
|
|
1,957
|
|
|
6,110
|
|
|
4,388
|
|
|||||
Construction equipment
|
|
1,351
|
|
|
2,326
|
|
|
991
|
|
|
1,248
|
|
|
539
|
|
|||||
Commercial real estate
|
|
1,652
|
|
|
1,984
|
|
|
3,418
|
|
|
5,555
|
|
|
1,392
|
|
|||||
Residential real estate and home equity
|
|
2,189
|
|
|
1,714
|
|
|
1,890
|
|
|
2,641
|
|
|
1,961
|
|
|||||
Consumer
|
|
429
|
|
|
141
|
|
|
134
|
|
|
206
|
|
|
109
|
|
|||||
Total nonaccrual loans and leases
|
|
9,789
|
|
|
27,859
|
|
|
19,405
|
|
|
19,907
|
|
|
12,718
|
|
|||||
Total nonperforming loans and leases
|
|
10,098
|
|
|
28,225
|
|
|
19,864
|
|
|
20,323
|
|
|
12,840
|
|
|||||
Other real estate
|
|
522
|
|
|
299
|
|
|
1,312
|
|
|
704
|
|
|
736
|
|
|||||
Repossessions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Commercial and agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Auto and light truck
|
|
1,865
|
|
|
440
|
|
|
165
|
|
|
32
|
|
|
10
|
|
|||||
Medium and heavy duty truck
|
|
—
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Aircraft
|
|
6,707
|
|
|
6,209
|
|
|
9,335
|
|
|
9,335
|
|
|
6,916
|
|
|||||
Construction equipment
|
|
35
|
|
|
—
|
|
|
582
|
|
|
—
|
|
|
—
|
|
|||||
Consumer
|
|
16
|
|
|
2
|
|
|
32
|
|
|
6
|
|
|
1
|
|
|||||
Total repossessions
|
|
8,623
|
|
|
6,666
|
|
|
10,114
|
|
|
9,373
|
|
|
6,927
|
|
|||||
Operating leases
|
|
—
|
|
|
126
|
|
|
9
|
|
|
34
|
|
|
121
|
|
|||||
Total nonperforming assets
|
|
$
|
19,243
|
|
|
$
|
35,316
|
|
|
$
|
31,299
|
|
|
$
|
30,434
|
|
|
$
|
20,624
|
|
Nonperforming loans and leases to loans and leases, net of unearned discount
|
|
0.20
|
%
|
|
0.58
|
%
|
|
0.44
|
%
|
|
0.49
|
%
|
|
0.32
|
%
|
|||||
Nonperforming assets to loans and leases and operating leases, net of unearned discount
|
|
0.37
|
%
|
|
0.71
|
%
|
|
0.67
|
%
|
|
0.70
|
%
|
|
0.50
|
%
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
U.S. Treasury and Federal agencies securities
|
|
$
|
524,896
|
|
|
$
|
537,913
|
|
|
$
|
471,508
|
|
U.S. States and political subdivisions securities
|
|
83,566
|
|
|
95,346
|
|
|
116,260
|
|
|||
Mortgage-backed securities — Federal agencies
|
|
372,458
|
|
|
324,390
|
|
|
289,327
|
|
|||
Corporate debt securities
|
|
52,151
|
|
|
45,843
|
|
|
31,573
|
|
|||
Foreign government and other securities
|
|
700
|
|
|
700
|
|
|
700
|
|
|||
Total investment securities available-for-sale
|
|
$
|
1,033,771
|
|
|
$
|
1,004,192
|
|
|
$
|
909,368
|
|
(Dollars in thousands)
|
|
Amount
|
|
Yield
|
|||
U.S. Treasury and Federal agencies securities
|
|
|
|
|
|
|
|
Under 1 year
|
|
$
|
121,828
|
|
|
2.06
|
%
|
1 – 5 years
|
|
381,966
|
|
|
1.94
|
|
|
5 – 10 years
|
|
21,102
|
|
|
1.67
|
|
|
Over 10 years
|
|
—
|
|
|
—
|
|
|
Total U.S. Treasury and Federal agencies securities
|
|
524,896
|
|
|
1.96
|
|
|
U.S. States and political subdivisions securities
|
|
|
|
|
|
|
|
Under 1 year
|
|
19,488
|
|
|
2.22
|
|
|
1 – 5 years
|
|
53,291
|
|
|
2.43
|
|
|
5 – 10 years
|
|
10,107
|
|
|
2.27
|
|
|
Over 10 years
|
|
680
|
|
|
2.76
|
|
|
Total U.S. States and political subdivisions securities
|
|
83,566
|
|
|
2.36
|
|
|
Corporate debt securities
|
|
|
|
|
|
|
|
Under 1 year
|
|
5,990
|
|
|
2.62
|
|
|
1 – 5 years
|
|
46,161
|
|
|
2.56
|
|
|
5 – 10 years
|
|
—
|
|
|
—
|
|
|
Over 10 years
|
|
—
|
|
|
—
|
|
|
Total Corporate debt securities
|
|
52,151
|
|
|
2.57
|
|
|
Foreign government and other securities
|
|
|
|
|
|
|
|
Under 1 year
|
|
—
|
|
|
—
|
|
|
1 – 5 years
|
|
700
|
|
|
2.66
|
|
|
5 – 10 years
|
|
—
|
|
|
—
|
|
|
Over 10 years
|
|
—
|
|
|
—
|
|
|
Total Foreign government and other securities
|
|
700
|
|
|
2.66
|
|
|
Mortgage-backed securities — Federal agencies
|
|
372,458
|
|
|
2.48
|
|
|
Total investment securities available-for-sale
|
|
$
|
1,033,771
|
|
|
2.21
|
%
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|
Amount
|
|
Rate
|
|||||||||
Noninterest bearing demand
|
|
$
|
1,171,639
|
|
|
—
|
%
|
|
$
|
1,069,664
|
|
|
—
|
%
|
|
$
|
983,050
|
|
|
—
|
%
|
Interest bearing demand
|
|
1,635,209
|
|
|
0.82
|
|
|
1,610,022
|
|
|
0.62
|
|
|
1,517,859
|
|
|
0.31
|
|
|||
Savings
|
|
825,292
|
|
|
0.20
|
|
|
839,652
|
|
|
0.14
|
|
|
828,993
|
|
|
0.09
|
|
|||
Time
|
|
1,644,596
|
|
|
2.16
|
|
|
1,444,325
|
|
|
1.63
|
|
|
1,163,345
|
|
|
1.18
|
|
|||
Total deposits
|
|
$
|
5,276,736
|
|
|
|
|
$
|
4,963,663
|
|
|
|
|
$
|
4,493,247
|
|
|
|
(Dollars in thousands)
|
|
Federal Funds Purchased and Securities Repurchase Agreements
|
|
Commercial Paper
|
|
Federal Home Loan Bank Advances
|
|
Other
Short-Term Borrowings
|
|
Total Borrowings
|
||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2019
|
|
$
|
120,459
|
|
|
$
|
3,993
|
|
|
$
|
20,000
|
|
|
$
|
1,441
|
|
|
$
|
145,893
|
|
Maximum amount outstanding at any month-end
|
|
187,848
|
|
|
4,820
|
|
|
168,000
|
|
|
1,762
|
|
|
362,430
|
|
|||||
Average amount outstanding
|
|
143,625
|
|
|
4,547
|
|
|
56,326
|
|
|
1,413
|
|
|
205,911
|
|
|||||
Weighted average interest rate during the year
|
|
0.33
|
%
|
|
0.28
|
%
|
|
2.56
|
%
|
|
—
|
%
|
|
0.94
|
%
|
|||||
Weighted average interest rate for outstanding amounts at December 31, 2019
|
|
0.23
|
%
|
|
0.29
|
%
|
|
1.61
|
%
|
|
—
|
%
|
|
0.42
|
%
|
|||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2018
|
|
$
|
113,627
|
|
|
$
|
4,325
|
|
|
$
|
80,000
|
|
|
$
|
1,392
|
|
|
$
|
199,344
|
|
Maximum amount outstanding at any month-end
|
|
148,002
|
|
|
5,590
|
|
|
225,000
|
|
|
2,740
|
|
|
381,332
|
|
|||||
Average amount outstanding
|
|
135,670
|
|
|
4,805
|
|
|
122,592
|
|
|
1,974
|
|
|
265,041
|
|
|||||
Weighted average interest rate during the year
|
|
0.30
|
%
|
|
0.29
|
%
|
|
1.97
|
%
|
|
—
|
%
|
|
1.07
|
%
|
|||||
Weighted average interest rate for outstanding amounts at December 31, 2018
|
|
0.47
|
%
|
|
0.29
|
%
|
|
2.57
|
%
|
|
—
|
%
|
|
1.30
|
%
|
|||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance at December 31, 2017
|
|
$
|
205,834
|
|
|
$
|
6,115
|
|
|
$
|
—
|
|
|
$
|
2,646
|
|
|
$
|
214,595
|
|
Maximum amount outstanding at any month-end
|
|
205,834
|
|
|
6,542
|
|
|
160,000
|
|
|
2,402
|
|
|
374,778
|
|
|||||
Average amount outstanding
|
|
166,114
|
|
|
6,327
|
|
|
70,293
|
|
|
2,501
|
|
|
245,235
|
|
|||||
Weighted average interest rate during the year
|
|
0.21
|
%
|
|
0.27
|
%
|
|
1.06
|
%
|
|
—
|
%
|
|
0.45
|
%
|
|||||
Weighted average interest rate for outstanding amounts at December 31, 2017
|
|
0.59
|
%
|
|
0.27
|
%
|
|
—
|
%
|
|
—
|
%
|
|
0.57
|
%
|
(i)
|
Available Liquidity (sum of short term borrowing capacity) greater than $500 million;
|
(ii)
|
Liquidity Ratio (total of net cash, short term investments and unpledged marketable assets divided by the sum of net deposits and short term liabilities) greater than 15%;
|
(iii)
|
Dependency Ratio (net potentially volatile liabilities minus short term investments divided by total earning assets minus short term investments) less than 15%; and
|
(iv)
|
Loans to Deposits Ratio less than 100%
|
|
|
Percentage Change in Net Interest Income
|
||||||
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Basis Point Interest Rate Change
|
|
12 Months
|
|
24 Months
|
|
12 Months
|
|
24 Months
|
Up 200
|
|
1.88%
|
|
5.57%
|
|
3.12%
|
|
6.92%
|
Up 100
|
|
0.95%
|
|
2.89%
|
|
1.58%
|
|
3.49%
|
Down 100
|
|
(4.06)%
|
|
(7.64)%
|
|
(4.33)%
|
|
(6.78)%
|
(Dollars in thousands)
|
|
Note
|
|
0 – 1 Year
|
|
1 – 3 Years
|
|
3 – 5 Years
|
|
Over 5 Years
|
|
Indeterminate maturity
|
|
Total
|
||||||||||||
Deposits without stated maturity
|
|
—
|
|
$
|
3,708,828
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,708,828
|
|
Certificates of deposit
|
|
10
|
|
1,256,577
|
|
|
332,333
|
|
|
57,495
|
|
|
2,093
|
|
|
—
|
|
|
1,648,498
|
|
||||||
Long-term debt
|
|
11
|
|
2,759
|
|
|
7,756
|
|
|
12,993
|
|
|
30,159
|
|
|
17,972
|
|
|
71,639
|
|
||||||
Subordinated notes
|
|
12
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58,764
|
|
|
—
|
|
|
58,764
|
|
||||||
Operating leases
|
|
18
|
|
3,477
|
|
|
7,514
|
|
|
5,205
|
|
|
11,508
|
|
|
—
|
|
|
27,704
|
|
||||||
Purchase obligations
|
|
—
|
|
34,768
|
|
|
10,531
|
|
|
1,368
|
|
|
—
|
|
|
—
|
|
|
46,667
|
|
||||||
Total contractual obligations
|
|
|
|
$
|
5,006,409
|
|
|
$
|
358,134
|
|
|
$
|
77,061
|
|
|
$
|
102,524
|
|
|
$
|
17,972
|
|
|
$
|
5,562,100
|
|
Three Months Ended (Dollars in thousands, except per share amounts)
|
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income
|
|
$
|
69,021
|
|
|
$
|
71,637
|
|
|
$
|
72,676
|
|
|
$
|
69,543
|
|
Interest expense
|
|
14,073
|
|
|
15,210
|
|
|
15,481
|
|
|
14,247
|
|
||||
Net interest income
|
|
54,948
|
|
|
56,427
|
|
|
57,195
|
|
|
55,296
|
|
||||
Provision for loan and lease losses
|
|
4,918
|
|
|
4,247
|
|
|
3,717
|
|
|
2,951
|
|
||||
Gains on investment securities available-for-sale
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Income before income taxes
|
|
28,950
|
|
|
30,491
|
|
|
32,137
|
|
|
28,576
|
|
||||
Net income
|
|
22,196
|
|
|
23,417
|
|
|
24,448
|
|
|
21,954
|
|
||||
Net income available to common shareholders
|
|
22,196
|
|
|
23,385
|
|
|
24,438
|
|
|
21,941
|
|
||||
Diluted net income per common share
|
|
0.86
|
|
|
0.91
|
|
|
0.95
|
|
|
0.86
|
|
||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest income
|
|
$
|
59,238
|
|
|
$
|
63,865
|
|
|
$
|
65,696
|
|
|
$
|
68,517
|
|
Interest expense
|
|
8,706
|
|
|
10,696
|
|
|
11,334
|
|
|
12,674
|
|
||||
Net interest income
|
|
50,532
|
|
|
53,169
|
|
|
54,362
|
|
|
55,843
|
|
||||
Provision for loan and lease losses
|
|
3,786
|
|
|
4,817
|
|
|
6,157
|
|
|
4,702
|
|
||||
(Losses) gains on investment securities available-for-sale
|
|
(345
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Income before income taxes
|
|
24,996
|
|
|
27,498
|
|
|
24,923
|
|
|
27,610
|
|
||||
Net income
|
|
19,116
|
|
|
21,964
|
|
|
19,888
|
|
|
21,446
|
|
||||
Net income available to common shareholders
|
|
19,116
|
|
|
21,964
|
|
|
19,888
|
|
|
21,446
|
|
||||
Diluted net income per common share
|
|
0.73
|
|
|
0.84
|
|
|
0.76
|
|
|
0.82
|
|
•
|
Testing the design and operating effectiveness of internal controls, including those related to technology, over the ALLL including data completeness and accuracy, classifications of loans by loan segment, historical loss data, the calculation of a loss rate, the establishment of qualitative adjustments, grading and risk classification of loans and establishment of specific reserves on impaired loans and management’s review controls over the ALLL balance as a whole including attending internal Company Credit Policy Committee meetings and Audit Committee discussions and analysis;
|
•
|
Testing clerical/computational accuracy of the formulas within the calculation spreadsheet;
|
•
|
Testing of completeness and accuracy of the information/reports utilized in the ALLL, including reports used in management review controls over the ALLL;
|
•
|
Computing an independent calculation of an acceptable range and comparing it to the Company’s estimate;
|
•
|
Evaluating the qualitative adjustment to the historical loss rates, including assessing the basis for the adjustments and the reasonableness of the significant assumptions; and
|
•
|
Testing of the loan review function and the accuracy of loan grades determined. Specifically, utilizing internal specialists to assist us in evaluating the appropriateness of loan grades and to assess the reasonableness of specific impairments on loans.
|
/s/ BKD, LLP
|
|
|
|
We have served as the Company’s auditor since 2015
|
|
|
|
Fort Wayne, Indiana
|
|
February 20, 2020
|
|
/s/ BKD, LLP
|
|
|
|
|
|
Fort Wayne, Indiana
|
|
February 20, 2020
|
|
December 31 (Dollars in thousands)
|
|
2019
|
|
2018
|
||||
ASSETS
|
|
|
|
|
|
|
||
Cash and due from banks
|
|
$
|
67,215
|
|
|
$
|
94,907
|
|
Federal funds sold and interest bearing deposits with other banks
|
|
16,150
|
|
|
4,172
|
|
||
Investment securities available-for-sale
|
|
1,040,583
|
|
|
990,129
|
|
||
Other investments
|
|
28,414
|
|
|
28,404
|
|
||
Mortgages held for sale
|
|
20,277
|
|
|
11,290
|
|
||
Loans and leases, net of unearned discount:
|
|
|
|
|
|
|
||
Commercial and agricultural
|
|
1,132,791
|
|
|
1,073,205
|
|
||
Auto and light truck
|
|
588,807
|
|
|
559,987
|
|
||
Medium and heavy duty truck
|
|
294,824
|
|
|
283,544
|
|
||
Aircraft
|
|
784,040
|
|
|
803,111
|
|
||
Construction equipment
|
|
705,451
|
|
|
645,239
|
|
||
Commercial real estate
|
|
908,177
|
|
|
809,886
|
|
||
Residential real estate and home equity
|
|
532,003
|
|
|
523,855
|
|
||
Consumer
|
|
139,434
|
|
|
136,637
|
|
||
Total loans and leases
|
|
5,085,527
|
|
|
4,835,464
|
|
||
Reserve for loan and lease losses
|
|
(111,254
|
)
|
|
(100,469
|
)
|
||
Net loans and leases
|
|
4,974,273
|
|
|
4,734,995
|
|
||
Equipment owned under operating leases, net
|
|
111,684
|
|
|
134,440
|
|
||
Net premises and equipment
|
|
52,219
|
|
|
52,139
|
|
||
Goodwill and intangible assets
|
|
83,971
|
|
|
83,998
|
|
||
Accrued income and other assets
|
|
227,990
|
|
|
159,271
|
|
||
Total assets
|
|
$
|
6,622,776
|
|
|
$
|
6,293,745
|
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
|
|
|
||
Deposits:
|
|
|
|
|
|
|
||
Noninterest-bearing demand
|
|
$
|
1,216,834
|
|
|
$
|
1,217,120
|
|
Interest-bearing deposits:
|
|
|
|
|
||||
Interest-bearing demand
|
|
1,677,200
|
|
|
1,614,959
|
|
||
Savings
|
|
814,794
|
|
|
822,477
|
|
||
Time
|
|
1,648,498
|
|
|
1,467,766
|
|
||
Total interest-bearing deposits
|
|
4,140,492
|
|
|
3,905,202
|
|
||
Total deposits
|
|
5,357,326
|
|
|
5,122,322
|
|
||
Short-term borrowings:
|
|
|
|
|
|
|
||
Federal funds purchased and securities sold under agreements to repurchase
|
|
120,459
|
|
|
113,627
|
|
||
Other short-term borrowings
|
|
25,434
|
|
|
85,717
|
|
||
Total short-term borrowings
|
|
145,893
|
|
|
199,344
|
|
||
Long-term debt and mandatorily redeemable securities
|
|
71,639
|
|
|
71,123
|
|
||
Subordinated notes
|
|
58,764
|
|
|
58,764
|
|
||
Accrued expenses and other liabilities
|
|
140,518
|
|
|
78,602
|
|
||
Total liabilities
|
|
5,774,140
|
|
|
5,530,155
|
|
||
|
|
|
|
|
||||
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 December 31,2019 and 2018 |
|
436,538
|
|
|
436,538
|
|
||
Retained earnings
|
|
463,269
|
|
|
398,980
|
|
||
Cost of common stock in treasury (2,696,200 shares at December 31, 2019 and 2,421,946 shares at December 31, 2018
|
|
(76,702
|
)
|
|
(62,760
|
)
|
||
Accumulated other comprehensive income (loss)
|
|
5,172
|
|
|
(10,676
|
)
|
||
Total shareholders’ equity
|
|
828,277
|
|
|
762,082
|
|
||
Noncontrolling interests
|
|
20,359
|
|
|
1,508
|
|
||
Total equity
|
|
848,636
|
|
|
763,590
|
|
||
Total liabilities and equity
|
|
$
|
6,622,776
|
|
|
$
|
6,293,745
|
|
Year Ended December 31 (Dollars in thousands, except per share amounts)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|||
Loans and leases
|
|
$
|
258,348
|
|
|
$
|
234,455
|
|
|
$
|
194,726
|
|
Investment securities, taxable
|
|
20,946
|
|
|
19,356
|
|
|
13,853
|
|
|||
Investment securities, tax-exempt
|
|
1,351
|
|
|
1,857
|
|
|
2,413
|
|
|||
Other
|
|
2,232
|
|
|
1,648
|
|
|
1,393
|
|
|||
Total interest income
|
|
282,877
|
|
|
257,316
|
|
|
212,385
|
|
|||
Interest expense:
|
|
|
|
|
|
|
|
|
|
|||
Deposits
|
|
50,495
|
|
|
34,631
|
|
|
19,202
|
|
|||
Short-term borrowings
|
|
1,934
|
|
|
2,838
|
|
|
1,115
|
|
|||
Subordinated notes
|
|
3,677
|
|
|
3,625
|
|
|
4,002
|
|
|||
Long-term debt and mandatorily redeemable securities
|
|
2,905
|
|
|
2,316
|
|
|
2,435
|
|
|||
Total interest expense
|
|
59,011
|
|
|
43,410
|
|
|
26,754
|
|
|||
Net interest income
|
|
223,866
|
|
|
213,906
|
|
|
185,631
|
|
|||
Provision for loan and lease losses
|
|
15,833
|
|
|
19,462
|
|
|
8,980
|
|
|||
Net interest income after provision for loan and lease losses
|
|
208,033
|
|
|
194,444
|
|
|
176,651
|
|
|||
Noninterest income:
|
|
|
|
|
|
|
|
|
|
|||
Trust and wealth advisory
|
|
20,692
|
|
|
21,071
|
|
|
20,980
|
|
|||
Service charges on deposit accounts
|
|
11,010
|
|
|
10,454
|
|
|
10,589
|
|
|||
Debit card
|
|
14,209
|
|
|
13,369
|
|
|
11,809
|
|
|||
Mortgage banking
|
|
4,698
|
|
|
3,844
|
|
|
4,796
|
|
|||
Insurance commissions
|
|
6,761
|
|
|
6,502
|
|
|
5,889
|
|
|||
Equipment rental
|
|
30,741
|
|
|
31,793
|
|
|
30,381
|
|
|||
(Losses) gains on investment securities available-for-sale
|
|
—
|
|
|
(345
|
)
|
|
4,340
|
|
|||
Other
|
|
13,019
|
|
|
10,362
|
|
|
9,922
|
|
|||
Total noninterest income
|
|
101,130
|
|
|
97,050
|
|
|
98,706
|
|
|||
Noninterest expense:
|
|
|
|
|
|
|
|
|
|
|||
Salaries and employee benefits
|
|
97,098
|
|
|
93,857
|
|
|
86,912
|
|
|||
Net occupancy
|
|
10,528
|
|
|
10,041
|
|
|
10,624
|
|
|||
Furniture and equipment
|
|
24,815
|
|
|
23,433
|
|
|
20,769
|
|
|||
Depreciation — leased equipment
|
|
25,128
|
|
|
26,248
|
|
|
25,215
|
|
|||
Professional fees
|
|
6,952
|
|
|
7,680
|
|
|
6,810
|
|
|||
Supplies and communication
|
|
6,454
|
|
|
6,320
|
|
|
5,355
|
|
|||
FDIC and other insurance
|
|
1,795
|
|
|
2,923
|
|
|
2,537
|
|
|||
Business development and marketing
|
|
6,303
|
|
|
6,112
|
|
|
7,477
|
|
|||
Loan and lease collection and repossession
|
|
3,402
|
|
|
3,375
|
|
|
2,724
|
|
|||
Other
|
|
6,534
|
|
|
6,478
|
|
|
5,574
|
|
|||
Total noninterest expense
|
|
189,009
|
|
|
186,467
|
|
|
173,997
|
|
|||
Income before income taxes
|
|
120,154
|
|
|
105,027
|
|
|
101,360
|
|
|||
Income tax expense
|
|
28,139
|
|
|
22,613
|
|
|
33,309
|
|
|||
Net income
|
|
92,015
|
|
|
82,414
|
|
|
68,051
|
|
|||
Net (income) loss attributable to noncontrolling interests
|
|
(55
|
)
|
|
—
|
|
|
—
|
|
|||
Net income available to common shareholders
|
|
$
|
91,960
|
|
|
$
|
82,414
|
|
|
$
|
68,051
|
|
Basic net income per common share
|
|
$
|
3.57
|
|
|
$
|
3.16
|
|
|
$
|
2.60
|
|
Diluted net income per common share
|
|
$
|
3.57
|
|
|
$
|
3.16
|
|
|
$
|
2.60
|
|
Year Ended December 31 (Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income
|
|
$
|
92,015
|
|
|
$
|
82,414
|
|
|
$
|
68,051
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
|
|||
Unrealized appreciation (depreciation) of investment securities available-for-sale
|
|
20,875
|
|
|
(9,073
|
)
|
|
(3,147
|
)
|
|||
Reclassification adjustment for realized losses (gains) included in net income
|
|
—
|
|
|
345
|
|
|
(4,340
|
)
|
|||
Income tax effect
|
|
(5,027
|
)
|
|
2,102
|
|
|
2,811
|
|
|||
Other comprehensive income (loss), net of tax
|
|
15,848
|
|
|
(6,626
|
)
|
|
(4,676
|
)
|
|||
Comprehensive income
|
|
107,863
|
|
|
75,788
|
|
|
63,375
|
|
|||
Comprehensive (income) loss attributable to noncontrolling interests
|
|
(55
|
)
|
|
—
|
|
|
—
|
|
|||
Comprehensive income available to common shareholders
|
|
$
|
107,808
|
|
|
$
|
75,788
|
|
|
$
|
63,375
|
|
|
|
1st Source Corporation Shareholders
|
|
|
|
|
||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts)
|
|
Preferred Stock
|
|
Common Stock
|
|
Retained Earnings
|
|
Cost of Common Stock in Treasury
|
|
Accumulated Other Comprehensive Income (Loss), Net
|
|
Total Shareholders’ Equity
|
|
Noncontrolling Interests
|
|
Total Equity
|
||||||||||||||||
Balance at January 1, 2017
|
|
$
|
—
|
|
|
$
|
436,538
|
|
|
$
|
290,824
|
|
|
$
|
(56,056
|
)
|
|
$
|
1,344
|
|
|
$
|
672,650
|
|
|
$
|
—
|
|
|
$
|
672,650
|
|
Cumulative-effect adjustment
|
|
—
|
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
—
|
|
|
(65
|
)
|
|
—
|
|
|
(65
|
)
|
||||||||
Balance at January 1, 2017, adjusted
|
|
—
|
|
|
436,538
|
|
|
290,759
|
|
|
(56,056
|
)
|
|
1,344
|
|
|
672,585
|
|
|
—
|
|
|
672,585
|
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
68,051
|
|
|
—
|
|
|
—
|
|
|
68,051
|
|
|
—
|
|
|
68,051
|
|
||||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,676
|
)
|
|
(4,676
|
)
|
|
—
|
|
|
(4,676
|
)
|
||||||||
Issuance of 61,899 common shares under
stock based compensation awards |
|
—
|
|
|
—
|
|
|
908
|
|
|
1,469
|
|
|
—
|
|
|
2,377
|
|
|
—
|
|
|
2,377
|
|
||||||||
Cost of 900 shares of common stock
acquired for treasury |
|
—
|
|
|
—
|
|
|
—
|
|
|
(41
|
)
|
|
—
|
|
|
(41
|
)
|
|
—
|
|
|
(41
|
)
|
||||||||
Common stock dividend ($0.76 per share)
|
|
—
|
|
|
—
|
|
|
(19,759
|
)
|
|
—
|
|
|
—
|
|
|
(19,759
|
)
|
|
—
|
|
|
(19,759
|
)
|
||||||||
Balance at December 31, 2017
|
|
$
|
—
|
|
|
$
|
436,538
|
|
|
$
|
339,959
|
|
|
$
|
(54,628
|
)
|
|
$
|
(3,332
|
)
|
|
$
|
718,537
|
|
|
$
|
—
|
|
|
$
|
718,537
|
|
Cumulative-effect adjustment
|
|
—
|
|
|
—
|
|
|
718
|
|
|
—
|
|
|
(718
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Balance at January 1, 2018, adjusted
|
|
—
|
|
|
436,538
|
|
|
340,677
|
|
|
(54,628
|
)
|
|
(4,050
|
)
|
|
718,537
|
|
|
—
|
|
|
718,537
|
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
82,414
|
|
|
—
|
|
|
—
|
|
|
82,414
|
|
|
—
|
|
|
82,414
|
|
||||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,626
|
)
|
|
(6,626
|
)
|
|
—
|
|
|
(6,626
|
)
|
||||||||
Issuance of 47,977 common shares under
stock based compensation awards |
|
—
|
|
|
—
|
|
|
841
|
|
|
1,139
|
|
|
—
|
|
|
1,980
|
|
|
—
|
|
|
1,980
|
|
||||||||
Cost of 201,013 shares of common stock
acquired for treasury |
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,271
|
)
|
|
—
|
|
|
(9,271
|
)
|
|
—
|
|
|
(9,271
|
)
|
||||||||
Common stock dividend ($0.96 per share)
|
|
—
|
|
|
—
|
|
|
(24,952
|
)
|
|
—
|
|
|
—
|
|
|
(24,952
|
)
|
|
—
|
|
|
(24,952
|
)
|
||||||||
Contributions from noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,508
|
|
|
1,508
|
|
||||||||
Balance at December 31, 2018
|
|
$
|
—
|
|
|
$
|
436,538
|
|
|
$
|
398,980
|
|
|
$
|
(62,760
|
)
|
|
$
|
(10,676
|
)
|
|
$
|
762,082
|
|
|
$
|
1,508
|
|
|
$
|
763,590
|
|
Cumulative-effect adjustment
|
|
—
|
|
|
—
|
|
|
(301
|
)
|
|
—
|
|
|
—
|
|
|
(301
|
)
|
|
—
|
|
|
(301
|
)
|
||||||||
Balance at January 1, 2019, adjusted
|
|
—
|
|
|
436,538
|
|
|
398,679
|
|
|
(62,760
|
)
|
|
(10,676
|
)
|
|
761,781
|
|
|
1,508
|
|
|
763,289
|
|
||||||||
Net income
|
|
—
|
|
|
—
|
|
|
91,960
|
|
|
—
|
|
|
—
|
|
|
91,960
|
|
|
55
|
|
|
92,015
|
|
||||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,848
|
|
|
15,848
|
|
|
—
|
|
|
15,848
|
|
||||||||
Issuance of 51,533 common shares under
stock based compensation awards |
|
—
|
|
|
—
|
|
|
862
|
|
|
1,143
|
|
|
—
|
|
|
2,005
|
|
|
—
|
|
|
2,005
|
|
||||||||
Cost of 325,787 shares of common stock
acquired for treasury |
|
—
|
|
|
—
|
|
|
—
|
|
|
(15,085
|
)
|
|
—
|
|
|
(15,085
|
)
|
|
—
|
|
|
(15,085
|
)
|
||||||||
Common stock dividend ($1.10 per share)
|
|
—
|
|
|
—
|
|
|
(28,232
|
)
|
|
—
|
|
|
—
|
|
|
(28,232
|
)
|
|
—
|
|
|
(28,232
|
)
|
||||||||
Contributions from noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,934
|
|
|
18,934
|
|
||||||||
Distributions to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(138
|
)
|
|
(138
|
)
|
||||||||
Balance at December 31, 2019
|
|
$
|
—
|
|
|
$
|
436,538
|
|
|
$
|
463,269
|
|
|
$
|
(76,702
|
)
|
|
$
|
5,172
|
|
|
$
|
828,277
|
|
|
$
|
20,359
|
|
|
$
|
848,636
|
|
Year Ended December 31 (Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
92,015
|
|
|
$
|
82,414
|
|
|
$
|
68,051
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Provision for loan and lease losses
|
|
15,833
|
|
|
19,462
|
|
|
8,980
|
|
|||
Depreciation of premises and equipment
|
|
5,786
|
|
|
5,620
|
|
|
5,658
|
|
|||
Depreciation of equipment owned and leased to others
|
|
25,128
|
|
|
26,248
|
|
|
25,215
|
|
|||
Stock-based compensation
|
|
2,765
|
|
|
3,553
|
|
|
2,963
|
|
|||
Amortization of investment securities premiums and accretion of discounts, net
|
|
4,014
|
|
|
3,477
|
|
|
5,449
|
|
|||
Amortization of mortgage servicing rights
|
|
1,312
|
|
|
956
|
|
|
1,092
|
|
|||
Amortization of right of use assets
|
|
3,046
|
|
|
—
|
|
|
—
|
|
|||
Deferred income taxes
|
|
(5,730
|
)
|
|
(550
|
)
|
|
2,767
|
|
|||
Losses (gains) on investment securities available-for-sale
|
|
—
|
|
|
345
|
|
|
(4,340
|
)
|
|||
Originations of loans held for sale, net of principal collected
|
|
(145,097
|
)
|
|
(78,450
|
)
|
|
(101,104
|
)
|
|||
Proceeds from the sales of loans held for sale
|
|
139,050
|
|
|
82,127
|
|
|
106,811
|
|
|||
Net gains on sale of loans held for sale
|
|
(2,940
|
)
|
|
(1,844
|
)
|
|
(2,981
|
)
|
|||
Net gains on sale of other real estate and repossessions
|
|
(487
|
)
|
|
(561
|
)
|
|
(251
|
)
|
|||
Net gain on sale of premises and equipment
|
|
(1,251
|
)
|
|
(128
|
)
|
|
(300
|
)
|
|||
Change in interest receivable
|
|
(245
|
)
|
|
(1,747
|
)
|
|
(2,119
|
)
|
|||
Change in interest payable
|
|
4,968
|
|
|
2,997
|
|
|
1,222
|
|
|||
Change in other assets
|
|
11,213
|
|
|
(7,048
|
)
|
|
551
|
|
|||
Change in other liabilities
|
|
13,492
|
|
|
21,884
|
|
|
19,364
|
|
|||
Other
|
|
1,734
|
|
|
940
|
|
|
2,670
|
|
|||
Net change in operating activities
|
|
164,606
|
|
|
159,695
|
|
|
139,698
|
|
|||
Investing activities:
|
|
|
|
|
|
|
|
|
|
|||
Proceeds from sales of investment securities available-for-sale
|
|
—
|
|
|
11,392
|
|
|
228,715
|
|
|||
Proceeds from maturities and paydowns of investment securities available-for-sale
|
|
317,295
|
|
|
145,167
|
|
|
177,466
|
|
|||
Purchases of investment securities available-for-sale
|
|
(351,189
|
)
|
|
(255,205
|
)
|
|
(469,385
|
)
|
|||
Net change in partnership investments
|
|
(33,840
|
)
|
|
(13,669
|
)
|
|
(24,489
|
)
|
|||
Net change in other investments
|
|
(10
|
)
|
|
(2,451
|
)
|
|
(3,495
|
)
|
|||
Loans sold or participated to others
|
|
53,369
|
|
|
22,835
|
|
|
32,004
|
|
|||
Proceeds from principal payments on direct finance leases
|
|
69,188
|
|
|
50,457
|
|
|
75,268
|
|
|||
Net change in loans and leases
|
|
(392,475
|
)
|
|
(405,961
|
)
|
|
(457,654
|
)
|
|||
Net change in equipment owned under operating leases
|
|
(2,495
|
)
|
|
(21,107
|
)
|
|
(46,003
|
)
|
|||
Purchases of premises and equipment
|
|
(8,033
|
)
|
|
(3,058
|
)
|
|
(5,444
|
)
|
|||
Proceeds from disposal of premises and equipment
|
|
3,418
|
|
|
216
|
|
|
2,180
|
|
|||
Proceeds from sales of other real estate and repossessions
|
|
10,855
|
|
|
13,433
|
|
|
6,194
|
|
|||
Net change in investing activities
|
|
(333,917
|
)
|
|
(457,951
|
)
|
|
(484,643
|
)
|
|||
Financing activities:
|
|
|
|
|
|
|
|
|
|
|||
Net change in demand deposits and savings accounts
|
|
54,272
|
|
|
171,799
|
|
|
205,649
|
|
|||
Net change in time deposits
|
|
180,732
|
|
|
197,793
|
|
|
213,321
|
|
|||
Net change in short-term borrowings
|
|
(53,451
|
)
|
|
(15,251
|
)
|
|
(77,348
|
)
|
|||
Proceeds from issuance of long-term debt
|
|
—
|
|
|
—
|
|
|
19,999
|
|
|||
Payments on long-term debt
|
|
(2,695
|
)
|
|
(1,735
|
)
|
|
(26,628
|
)
|
|||
Stock issued under stock purchase plans
|
|
49
|
|
|
145
|
|
|
153
|
|
|||
Acquisition of treasury stock
|
|
(15,085
|
)
|
|
(9,271
|
)
|
|
(41
|
)
|
|||
Net change in noncontrolling interests
|
|
18,796
|
|
|
1,508
|
|
|
—
|
|
|||
Cash dividends paid on common stock
|
|
(29,021
|
)
|
|
(25,686
|
)
|
|
(20,431
|
)
|
|||
Net change in financing activities
|
|
153,597
|
|
|
319,302
|
|
|
314,674
|
|
|||
Net change in cash and cash equivalents
|
|
(15,714
|
)
|
|
21,046
|
|
|
(30,271
|
)
|
|||
Cash and cash equivalents, beginning of year
|
|
99,079
|
|
|
78,033
|
|
|
108,304
|
|
|||
Cash and cash equivalents, end of year
|
|
$
|
83,365
|
|
|
$
|
99,079
|
|
|
$
|
78,033
|
|
Supplemental Information:
|
|
|
|
|
|
|
|
|
|
|||
Non-cash transactions:
|
|
|
|
|
|
|
|
|
|
|||
Loans transferred to other real estate and repossessions
|
|
$
|
14,807
|
|
|
$
|
11,007
|
|
|
$
|
8,135
|
|
Common stock matching contribution to Employee Stock Ownership and Profit Sharing Plan
|
|
300
|
|
|
583
|
|
|
1,426
|
|
|||
Right of use assets obtained in exchange for lease obligation
|
|
17,064
|
|
|
—
|
|
|
—
|
|
|||
Cash paid for:
|
|
|
|
|
|
|
|
|
|
|||
Interest
|
|
$
|
54,043
|
|
|
$
|
40,413
|
|
|
$
|
25,531
|
|
Income taxes
|
|
5,585
|
|
|
8,272
|
|
|
10,567
|
|
(Dollars in thousands)
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury and Federal agencies securities
|
|
$
|
524,896
|
|
|
$
|
2,538
|
|
|
$
|
(470
|
)
|
|
$
|
526,964
|
|
U.S. States and political subdivisions securities
|
|
83,566
|
|
|
1,048
|
|
|
(109
|
)
|
|
84,505
|
|
||||
Mortgage-backed securities - Federal agencies
|
|
372,458
|
|
|
3,948
|
|
|
(1,017
|
)
|
|
375,389
|
|
||||
Corporate debt securities
|
|
52,151
|
|
|
890
|
|
|
(16
|
)
|
|
53,025
|
|
||||
Foreign government and other securities
|
|
700
|
|
|
—
|
|
|
—
|
|
|
700
|
|
||||
Total investment securities available-for-sale
|
|
$
|
1,033,771
|
|
|
$
|
8,424
|
|
|
$
|
(1,612
|
)
|
|
$
|
1,040,583
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury and Federal agencies securities
|
|
$
|
537,913
|
|
|
$
|
196
|
|
|
$
|
(6,886
|
)
|
|
$
|
531,223
|
|
U.S. States and political subdivisions securities
|
|
95,346
|
|
|
172
|
|
|
(936
|
)
|
|
94,582
|
|
||||
Mortgage-backed securities - Federal agencies
|
|
324,390
|
|
|
718
|
|
|
(6,875
|
)
|
|
318,233
|
|
||||
Corporate debt securities
|
|
45,843
|
|
|
—
|
|
|
(451
|
)
|
|
45,392
|
|
||||
Foreign government and other securities
|
|
700
|
|
|
—
|
|
|
(1
|
)
|
|
699
|
|
||||
Total investment securities available-for-sale
|
|
$
|
1,004,192
|
|
|
$
|
1,086
|
|
|
$
|
(15,149
|
)
|
|
$
|
990,129
|
|
(Dollars in thousands)
|
|
Amortized Cost
|
|
Fair Value
|
||||
Due in one year or less
|
|
$
|
147,306
|
|
|
$
|
147,629
|
|
Due after one year through five years
|
|
482,118
|
|
|
485,745
|
|
||
Due after five years through ten years
|
|
31,209
|
|
|
31,173
|
|
||
Due after ten years
|
|
680
|
|
|
647
|
|
||
Mortgage-backed securities
|
|
372,458
|
|
|
375,389
|
|
||
Total debt securities available-for-sale
|
|
$
|
1,033,771
|
|
|
$
|
1,040,583
|
|
|
|
Less than 12 Months
|
|
12 months or Longer
|
|
Total
|
||||||||||||||||||
(Dollars in thousands)
|
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
|
Fair Value
|
|
Unrealized Losses
|
||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury and Federal agencies securities
|
|
$
|
87,352
|
|
|
$
|
(171
|
)
|
|
$
|
69,053
|
|
|
$
|
(299
|
)
|
|
$
|
156,405
|
|
|
$
|
(470
|
)
|
U.S. States and political subdivisions securities
|
|
9,283
|
|
|
(107
|
)
|
|
1,042
|
|
|
(2
|
)
|
|
10,325
|
|
|
(109
|
)
|
||||||
Mortgage-backed securities - Federal agencies
|
|
81,951
|
|
|
(383
|
)
|
|
51,165
|
|
|
(634
|
)
|
|
133,116
|
|
|
(1,017
|
)
|
||||||
Corporate debt securities
|
|
—
|
|
|
—
|
|
|
8,091
|
|
|
(16
|
)
|
|
8,091
|
|
|
(16
|
)
|
||||||
Foreign government and other securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total temporarily impaired available-for-sale securities
|
|
$
|
178,586
|
|
|
$
|
(661
|
)
|
|
$
|
129,351
|
|
|
$
|
(951
|
)
|
|
$
|
307,937
|
|
|
$
|
(1,612
|
)
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
U.S. Treasury and Federal agencies securities
|
|
$
|
55,491
|
|
|
$
|
(177
|
)
|
|
$
|
424,269
|
|
|
$
|
(6,709
|
)
|
|
$
|
479,760
|
|
|
$
|
(6,886
|
)
|
U.S. States and political subdivisions securities
|
|
21,059
|
|
|
(61
|
)
|
|
45,365
|
|
|
(875
|
)
|
|
66,424
|
|
|
(936
|
)
|
||||||
Mortgage-backed securities - Federal agencies
|
|
65,554
|
|
|
(511
|
)
|
|
198,221
|
|
|
(6,364
|
)
|
|
263,775
|
|
|
(6,875
|
)
|
||||||
Corporate debt securities
|
|
21,496
|
|
|
(143
|
)
|
|
23,896
|
|
|
(308
|
)
|
|
45,392
|
|
|
(451
|
)
|
||||||
Foreign government and other securities
|
|
699
|
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
699
|
|
|
(1
|
)
|
||||||
Total temporarily impaired available-for-sale securities
|
|
$
|
164,299
|
|
|
$
|
(893
|
)
|
|
$
|
691,751
|
|
|
$
|
(14,256
|
)
|
|
$
|
856,050
|
|
|
$
|
(15,149
|
)
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Gross realized gains
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
7,425
|
|
Gross realized losses
|
|
—
|
|
|
(347
|
)
|
|
(2,895
|
)
|
|||
OTTI losses
|
|
—
|
|
|
—
|
|
|
(190
|
)
|
|||
Net realized (losses) gains
|
|
$
|
—
|
|
|
$
|
(345
|
)
|
|
$
|
4,340
|
|
|
|
Credit Quality Grades
|
||||||||||
(Dollars in thousands)
|
|
1-6
|
|
7-12
|
|
Total
|
||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|||
Commercial and agricultural
|
|
$
|
1,080,933
|
|
|
$
|
51,858
|
|
|
$
|
1,132,791
|
|
Auto and light truck
|
|
569,234
|
|
|
19,573
|
|
|
588,807
|
|
|||
Medium and heavy duty truck
|
|
293,736
|
|
|
1,088
|
|
|
294,824
|
|
|||
Aircraft
|
|
764,564
|
|
|
19,476
|
|
|
784,040
|
|
|||
Construction equipment
|
|
668,076
|
|
|
37,375
|
|
|
705,451
|
|
|||
Commercial real estate
|
|
888,154
|
|
|
20,023
|
|
|
908,177
|
|
|||
Total
|
|
$
|
4,264,697
|
|
|
$
|
149,393
|
|
|
$
|
4,414,090
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|||
Commercial and agricultural
|
|
$
|
1,043,019
|
|
|
$
|
30,186
|
|
|
$
|
1,073,205
|
|
Auto and light truck
|
|
528,174
|
|
|
31,813
|
|
|
559,987
|
|
|||
Medium and heavy duty truck
|
|
281,834
|
|
|
1,710
|
|
|
283,544
|
|
|||
Aircraft
|
|
768,442
|
|
|
34,669
|
|
|
803,111
|
|
|||
Construction equipment
|
|
625,579
|
|
|
19,660
|
|
|
645,239
|
|
|||
Commercial real estate
|
|
787,376
|
|
|
22,510
|
|
|
809,886
|
|
|||
Total
|
|
$
|
4,034,424
|
|
|
$
|
140,548
|
|
|
$
|
4,174,972
|
|
(Dollars in thousands)
|
|
Performing
|
|
Nonperforming
|
|
Total
|
||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|||
Residential real estate and home equity
|
|
$
|
529,557
|
|
|
$
|
2,446
|
|
|
$
|
532,003
|
|
Consumer
|
|
138,951
|
|
|
483
|
|
|
139,434
|
|
|||
Total
|
|
$
|
668,508
|
|
|
$
|
2,929
|
|
|
$
|
671,437
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|||
Residential real estate and home equity
|
|
$
|
521,846
|
|
|
$
|
2,009
|
|
|
$
|
523,855
|
|
Consumer
|
|
136,423
|
|
|
214
|
|
|
136,637
|
|
|||
Total
|
|
$
|
658,269
|
|
|
$
|
2,223
|
|
|
$
|
660,492
|
|
(Dollars in thousands)
|
|
Current
|
|
30-59 Days Past Due
|
|
60-89 Days Past Due
|
|
90 Days or More Past Due and Accruing
|
|
Total Accruing Loans
|
|
Nonaccrual
|
|
Total Financing Receivables
|
||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial and agricultural
|
|
$
|
1,131,704
|
|
|
$
|
118
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,131,822
|
|
|
$
|
969
|
|
|
$
|
1,132,791
|
|
Auto and light truck
|
|
586,212
|
|
|
1,268
|
|
|
77
|
|
|
—
|
|
|
587,557
|
|
|
1,250
|
|
|
588,807
|
|
|||||||
Medium and heavy duty truck
|
|
293,736
|
|
|
14
|
|
|
—
|
|
|
—
|
|
|
293,750
|
|
|
1,074
|
|
|
294,824
|
|
|||||||
Aircraft
|
|
772,846
|
|
|
7,026
|
|
|
3,293
|
|
|
—
|
|
|
783,165
|
|
|
875
|
|
|
784,040
|
|
|||||||
Construction equipment
|
|
702,671
|
|
|
819
|
|
|
609
|
|
|
—
|
|
|
704,099
|
|
|
1,352
|
|
|
705,451
|
|
|||||||
Commercial real estate
|
|
906,468
|
|
|
58
|
|
|
—
|
|
|
—
|
|
|
906,526
|
|
|
1,651
|
|
|
908,177
|
|
|||||||
Residential real estate and home equity
|
|
528,844
|
|
|
561
|
|
|
152
|
|
|
257
|
|
|
529,814
|
|
|
2,189
|
|
|
532,003
|
|
|||||||
Consumer
|
|
138,132
|
|
|
632
|
|
|
187
|
|
|
54
|
|
|
139,005
|
|
|
429
|
|
|
139,434
|
|
|||||||
Total
|
|
$
|
5,060,613
|
|
|
$
|
10,496
|
|
|
$
|
4,318
|
|
|
$
|
311
|
|
|
$
|
5,075,738
|
|
|
$
|
9,789
|
|
|
$
|
5,085,527
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commercial and agricultural
|
|
$
|
1,070,530
|
|
|
$
|
22
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,070,552
|
|
|
$
|
2,653
|
|
|
$
|
1,073,205
|
|
Auto and light truck
|
|
544,022
|
|
|
3,154
|
|
|
1,437
|
|
|
—
|
|
|
548,613
|
|
|
11,374
|
|
|
559,987
|
|
|||||||
Medium and heavy duty truck
|
|
283,284
|
|
|
154
|
|
|
—
|
|
|
—
|
|
|
283,438
|
|
|
106
|
|
|
283,544
|
|
|||||||
Aircraft
|
|
790,233
|
|
|
4,149
|
|
|
1,168
|
|
|
—
|
|
|
795,550
|
|
|
7,561
|
|
|
803,111
|
|
|||||||
Construction equipment
|
|
641,270
|
|
|
1,643
|
|
|
—
|
|
|
—
|
|
|
642,913
|
|
|
2,326
|
|
|
645,239
|
|
|||||||
Commercial real estate
|
|
807,793
|
|
|
109
|
|
|
—
|
|
|
—
|
|
|
807,902
|
|
|
1,984
|
|
|
809,886
|
|
|||||||
Residential real estate and home equity
|
|
520,124
|
|
|
1,267
|
|
|
455
|
|
|
295
|
|
|
522,141
|
|
|
1,714
|
|
|
523,855
|
|
|||||||
Consumer
|
|
135,591
|
|
|
682
|
|
|
150
|
|
|
73
|
|
|
136,496
|
|
|
141
|
|
|
136,637
|
|
|||||||
Total
|
|
$
|
4,792,847
|
|
|
$
|
11,180
|
|
|
$
|
3,210
|
|
|
$
|
368
|
|
|
$
|
4,807,605
|
|
|
$
|
27,859
|
|
|
$
|
4,835,464
|
|
(Dollars in thousands)
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Related Reserve
|
||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|||
With no related reserve recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and agricultural
|
|
$
|
218
|
|
|
$
|
218
|
|
|
$
|
—
|
|
Auto and light truck
|
|
853
|
|
|
853
|
|
|
—
|
|
|||
Medium and heavy duty truck
|
|
1,074
|
|
|
1,074
|
|
|
—
|
|
|||
Aircraft
|
|
875
|
|
|
875
|
|
|
—
|
|
|||
Construction equipment
|
|
615
|
|
|
615
|
|
|
—
|
|
|||
Commercial real estate
|
|
1,487
|
|
|
1,487
|
|
|
—
|
|
|||
Residential real estate and home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total with no related reserve recorded
|
|
5,122
|
|
|
5,122
|
|
|
—
|
|
|||
With a reserve recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and agricultural
|
|
10,366
|
|
|
10,366
|
|
|
3,003
|
|
|||
Auto and light truck
|
|
278
|
|
|
278
|
|
|
30
|
|
|||
Medium and heavy duty truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Aircraft
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Construction equipment
|
|
736
|
|
|
736
|
|
|
75
|
|
|||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate and home equity
|
|
337
|
|
|
339
|
|
|
117
|
|
|||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total with a reserve recorded
|
|
11,717
|
|
|
11,719
|
|
|
3,225
|
|
|||
Total impaired loans
|
|
$
|
16,839
|
|
|
$
|
16,841
|
|
|
$
|
3,225
|
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|||
With no related reserve recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and agricultural
|
|
$
|
2,471
|
|
|
$
|
2,471
|
|
|
$
|
—
|
|
Auto and light truck
|
|
7,504
|
|
|
7,504
|
|
|
—
|
|
|||
Medium and heavy duty truck
|
|
106
|
|
|
106
|
|
|
—
|
|
|||
Aircraft
|
|
556
|
|
|
556
|
|
|
—
|
|
|||
Construction equipment
|
|
905
|
|
|
905
|
|
|
—
|
|
|||
Commercial real estate
|
|
1,131
|
|
|
1,131
|
|
|
—
|
|
|||
Residential real estate and home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total with no related reserve recorded
|
|
12,673
|
|
|
12,673
|
|
|
—
|
|
|||
With a reserve recorded:
|
|
|
|
|
|
|
|
|
|
|||
Commercial and agricultural
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Auto and light truck
|
|
3,840
|
|
|
3,840
|
|
|
372
|
|
|||
Medium and heavy duty truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Aircraft
|
|
7,004
|
|
|
7,004
|
|
|
1,255
|
|
|||
Construction equipment
|
|
1,340
|
|
|
1,340
|
|
|
279
|
|
|||
Commercial real estate
|
|
759
|
|
|
759
|
|
|
51
|
|
|||
Residential real estate and home equity
|
|
344
|
|
|
346
|
|
|
126
|
|
|||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total with a reserve recorded
|
|
13,287
|
|
|
13,289
|
|
|
2,083
|
|
|||
Total impaired loans
|
|
$
|
25,960
|
|
|
$
|
25,962
|
|
|
$
|
2,083
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
(Dollars in thousands)
|
|
Average
Recorded
Investment
|
|
Interest
Income
|
|
Average
Recorded
Investment
|
|
Interest
Income
|
|
Average
Recorded
Investment
|
|
Interest
Income
|
||||||||||||
Commercial and agricultural
|
|
$
|
5,983
|
|
|
$
|
242
|
|
|
$
|
2,812
|
|
|
$
|
—
|
|
|
$
|
4,526
|
|
|
$
|
1
|
|
Auto and light truck
|
|
2,721
|
|
|
—
|
|
|
9,352
|
|
|
—
|
|
|
766
|
|
|
—
|
|
||||||
Medium and heavy duty truck
|
|
244
|
|
|
—
|
|
|
247
|
|
|
—
|
|
|
658
|
|
|
—
|
|
||||||
Aircraft
|
|
2,409
|
|
|
8
|
|
|
9,987
|
|
|
20
|
|
|
4,873
|
|
|
5
|
|
||||||
Construction equipment
|
|
1,664
|
|
|
—
|
|
|
1,663
|
|
|
—
|
|
|
1,011
|
|
|
—
|
|
||||||
Commercial real estate
|
|
1,715
|
|
|
—
|
|
|
2,303
|
|
|
—
|
|
|
3,220
|
|
|
2
|
|
||||||
Residential real estate and home equity
|
|
340
|
|
|
19
|
|
|
347
|
|
|
15
|
|
|
355
|
|
|
15
|
|
||||||
Consumer loans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
15,076
|
|
|
$
|
269
|
|
|
$
|
26,711
|
|
|
$
|
35
|
|
|
$
|
15,409
|
|
|
$
|
23
|
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
(Dollars in thousands)
|
|
Number of Modifications
|
|
Recorded Investment
|
|
Number of Modifications
|
|
Recorded Investment
|
|
Number of Modifications
|
|
Recorded Investment
|
|||||||||
Performing TDRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and agricultural
|
|
1
|
|
|
$
|
9,901
|
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
Auto and light truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Medium and heavy duty truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Aircraft
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Construction equipment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate and home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total performing TDR modifications
|
|
1
|
|
|
9,901
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Nonperforming TDRs:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Commercial and agricultural
|
|
1
|
|
|
465
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|||
Auto and light truck
|
|
—
|
|
|
—
|
|
|
1
|
|
|
285
|
|
|
—
|
|
|
—
|
|
|||
Medium and heavy duty truck
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Aircraft
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Construction equipment
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Commercial real estate
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Residential real estate and home equity
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Consumer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Total nonperforming TDR modifications
|
|
1
|
|
|
465
|
|
|
1
|
|
|
285
|
|
|
1
|
|
|
—
|
|
|||
Total TDR modifications
|
|
2
|
|
|
$
|
10,366
|
|
|
1
|
|
|
$
|
285
|
|
|
1
|
|
|
$
|
—
|
|
Year Ended December 31 (Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Performing TDRs
|
|
$
|
10,238
|
|
|
$
|
344
|
|
Nonperforming TDRs
|
|
486
|
|
|
316
|
|
||
Total TDRs
|
|
$
|
10,724
|
|
|
$
|
660
|
|
(Dollars in thousands)
|
|
Commercial and agricultural
|
|
Auto and light truck
|
|
Medium and heavy duty truck
|
|
Aircraft
|
|
Construction equipment
|
|
Commercial real estate
|
|
Residential real estate and home equity
|
|
Consumer
|
|
Total
|
||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, beginning of year
|
|
$
|
17,063
|
|
|
$
|
14,689
|
|
|
$
|
4,303
|
|
|
$
|
33,047
|
|
|
$
|
10,922
|
|
|
$
|
15,705
|
|
|
$
|
3,425
|
|
|
$
|
1,315
|
|
|
$
|
100,469
|
|
Charge-offs
|
|
1,040
|
|
|
991
|
|
|
1,132
|
|
|
3,066
|
|
|
238
|
|
|
5
|
|
|
53
|
|
|
1,066
|
|
|
7,591
|
|
|||||||||
Recoveries
|
|
664
|
|
|
97
|
|
|
32
|
|
|
1,143
|
|
|
160
|
|
|
75
|
|
|
85
|
|
|
287
|
|
|
2,543
|
|
|||||||||
Net charge-offs
|
|
376
|
|
|
894
|
|
|
1,100
|
|
|
1,923
|
|
|
78
|
|
|
(70
|
)
|
|
(32
|
)
|
|
779
|
|
|
5,048
|
|
|||||||||
Provision (recovery of provision)
|
|
6,984
|
|
|
605
|
|
|
1,409
|
|
|
(66
|
)
|
|
3,276
|
|
|
2,575
|
|
|
152
|
|
|
898
|
|
|
15,833
|
|
|||||||||
Balance, end of year
|
|
$
|
23,671
|
|
|
$
|
14,400
|
|
|
$
|
4,612
|
|
|
$
|
31,058
|
|
|
$
|
14,120
|
|
|
$
|
18,350
|
|
|
$
|
3,609
|
|
|
$
|
1,434
|
|
|
$
|
111,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, beginning of year
|
|
$
|
16,228
|
|
|
$
|
10,103
|
|
|
$
|
4,844
|
|
|
$
|
34,619
|
|
|
$
|
9,343
|
|
|
$
|
14,792
|
|
|
$
|
3,666
|
|
|
$
|
1,288
|
|
|
$
|
94,883
|
|
Charge-offs
|
|
229
|
|
|
3,308
|
|
|
23
|
|
|
12,222
|
|
|
288
|
|
|
70
|
|
|
63
|
|
|
909
|
|
|
17,112
|
|
|||||||||
Recoveries
|
|
222
|
|
|
68
|
|
|
—
|
|
|
2,499
|
|
|
100
|
|
|
53
|
|
|
23
|
|
|
271
|
|
|
3,236
|
|
|||||||||
Net charge-offs (recoveries)
|
|
7
|
|
|
3,240
|
|
|
23
|
|
|
9,723
|
|
|
188
|
|
|
17
|
|
|
40
|
|
|
638
|
|
|
13,876
|
|
|||||||||
Provision (recovery of provision)
|
|
842
|
|
|
7,826
|
|
|
(518
|
)
|
|
8,151
|
|
|
1,767
|
|
|
930
|
|
|
(201
|
)
|
|
665
|
|
|
19,462
|
|
|||||||||
Balance, end of year
|
|
$
|
17,063
|
|
|
$
|
14,689
|
|
|
$
|
4,303
|
|
|
$
|
33,047
|
|
|
$
|
10,922
|
|
|
$
|
15,705
|
|
|
$
|
3,425
|
|
|
$
|
1,315
|
|
|
$
|
100,469
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Balance, beginning of year
|
|
$
|
14,668
|
|
|
$
|
8,064
|
|
|
$
|
4,740
|
|
|
$
|
34,352
|
|
|
$
|
8,207
|
|
|
$
|
13,677
|
|
|
$
|
3,550
|
|
|
$
|
1,285
|
|
|
$
|
88,543
|
|
Charge-offs
|
|
2,415
|
|
|
774
|
|
|
—
|
|
|
1,872
|
|
|
164
|
|
|
344
|
|
|
124
|
|
|
836
|
|
|
6,529
|
|
|||||||||
Recoveries
|
|
984
|
|
|
1,153
|
|
|
—
|
|
|
227
|
|
|
298
|
|
|
851
|
|
|
109
|
|
|
267
|
|
|
3,889
|
|
|||||||||
Net charge-offs (recoveries)
|
|
1,431
|
|
|
(379
|
)
|
|
—
|
|
|
1,645
|
|
|
(134
|
)
|
|
(507
|
)
|
|
15
|
|
|
569
|
|
|
2,640
|
|
|||||||||
Provision (recovery of provision)
|
|
2,991
|
|
|
1,660
|
|
|
104
|
|
|
1,912
|
|
|
1,002
|
|
|
608
|
|
|
131
|
|
|
572
|
|
|
8,980
|
|
|||||||||
Balance, end of year
|
|
$
|
16,228
|
|
|
$
|
10,103
|
|
|
$
|
4,844
|
|
|
$
|
34,619
|
|
|
$
|
9,343
|
|
|
$
|
14,792
|
|
|
$
|
3,666
|
|
|
$
|
1,288
|
|
|
$
|
94,883
|
|
(Dollars in thousands)
|
|
Commercial and agricultural
|
|
Auto and light truck
|
|
Medium and heavy duty truck
|
|
Aircraft
|
|
Construction equipment
|
|
Commercial real estate
|
|
Residential real estate and home equity
|
|
Consumer
|
|
Total
|
||||||||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Reserve for loan and lease losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance, individually evaluated for impairment
|
|
$
|
3,003
|
|
|
$
|
30
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
75
|
|
|
$
|
—
|
|
|
$
|
117
|
|
|
$
|
—
|
|
|
$
|
3,225
|
|
Ending balance, collectively evaluated for impairment
|
|
20,668
|
|
|
14,370
|
|
|
4,612
|
|
|
31,058
|
|
|
14,045
|
|
|
18,350
|
|
|
3,492
|
|
|
1,434
|
|
|
108,029
|
|
|||||||||
Total reserve for loan and lease losses
|
|
$
|
23,671
|
|
|
$
|
14,400
|
|
|
$
|
4,612
|
|
|
$
|
31,058
|
|
|
$
|
14,120
|
|
|
$
|
18,350
|
|
|
$
|
3,609
|
|
|
$
|
1,434
|
|
|
$
|
111,254
|
|
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Ending balance, individually evaluated for impairment
|
|
$
|
10,584
|
|
|
$
|
1,131
|
|
|
$
|
1,074
|
|
|
$
|
875
|
|
|
$
|
1,351
|
|
|
$
|
1,487
|
|
|
$
|
337
|
|
|
$
|
—
|
|
|
$
|
16,839
|
|
Ending balance, collectively evaluated for impairment
|
|
1,122,207
|
|
|
587,676
|
|
|
293,750
|
|
|
783,165
|
|
|
704,100
|
|
|
906,690
|
|
|
531,666
|
|
|
139,434
|
|
|
5,068,688
|
|
|||||||||
Total recorded investment in loans
|
|
$
|
1,132,791
|
|
|
$
|
588,807
|
|
|
$
|
294,824
|
|
|
$
|
784,040
|
|
|
$
|
705,451
|
|
|
$
|
908,177
|
|
|
$
|
532,003
|
|
|
$
|
139,434
|
|
|
$
|
5,085,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Reserve for loan and lease losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Ending balance, individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
372
|
|
|
$
|
—
|
|
|
$
|
1,255
|
|
|
$
|
279
|
|
|
$
|
51
|
|
|
$
|
126
|
|
|
$
|
—
|
|
|
$
|
2,083
|
|
Ending balance, collectively evaluated for impairment
|
|
17,063
|
|
|
14,317
|
|
|
4,303
|
|
|
31,792
|
|
|
10,643
|
|
|
15,654
|
|
|
3,299
|
|
|
1,315
|
|
|
98,386
|
|
|||||||||
Total reserve for loan and lease losses
|
|
$
|
17,063
|
|
|
$
|
14,689
|
|
|
$
|
4,303
|
|
|
$
|
33,047
|
|
|
$
|
10,922
|
|
|
$
|
15,705
|
|
|
$
|
3,425
|
|
|
$
|
1,315
|
|
|
$
|
100,469
|
|
Recorded investment in loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Ending balance, individually evaluated for impairment
|
|
$
|
2,471
|
|
|
$
|
11,344
|
|
|
$
|
106
|
|
|
$
|
7,560
|
|
|
$
|
2,245
|
|
|
$
|
1,890
|
|
|
$
|
344
|
|
|
$
|
—
|
|
|
$
|
25,960
|
|
Ending balance, collectively evaluated for impairment
|
|
1,070,734
|
|
|
548,643
|
|
|
283,438
|
|
|
795,551
|
|
|
642,994
|
|
|
807,996
|
|
|
523,511
|
|
|
136,637
|
|
|
4,809,504
|
|
|||||||||
Total recorded investment in loans
|
|
$
|
1,073,205
|
|
|
$
|
559,987
|
|
|
$
|
283,544
|
|
|
$
|
803,111
|
|
|
$
|
645,239
|
|
|
$
|
809,886
|
|
|
$
|
523,855
|
|
|
$
|
136,637
|
|
|
$
|
4,835,464
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Direct finance leases:
|
|
|
|
|
|
|
||
Minimum lease payments
|
|
$
|
190,879
|
|
|
$
|
257,398
|
|
Estimated unguaranteed residual values
|
|
41
|
|
|
41
|
|
||
Less: Unearned income
|
|
(30,568
|
)
|
|
(46,709
|
)
|
||
Net investment in direct finance leases
|
|
$
|
160,352
|
|
|
$
|
210,730
|
|
|
|
|
|
|
||||
Operating leases:
|
|
|
|
|
||||
Gross investment in operating leases
|
|
$
|
176,485
|
|
|
$
|
199,954
|
|
Accumulated depreciation
|
|
(64,801
|
)
|
|
(65,514
|
)
|
||
Net investment in operating leases
|
|
$
|
111,684
|
|
|
$
|
134,440
|
|
(Dollars in thousands)
|
|
Direct
Finance Leases
|
|
Operating Leases
|
||||
2020
|
|
$
|
42,940
|
|
|
$
|
33,015
|
|
2021
|
|
34,966
|
|
|
20,036
|
|
||
2022
|
|
33,577
|
|
|
12,800
|
|
||
2023
|
|
29,027
|
|
|
7,208
|
|
||
2024
|
|
16,001
|
|
|
2,968
|
|
||
Thereafter
|
|
34,368
|
|
|
934
|
|
||
Total
|
|
$
|
190,879
|
|
|
$
|
76,961
|
|
(Dollars in thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Direct finance leases:
|
|
|
|
|
|
||||||
Interest income on lease receivable
|
$
|
10,985
|
|
|
$
|
13,052
|
|
|
$
|
11,482
|
|
|
|
|
|
|
|
||||||
Operating leases:
|
|
|
|
|
|
||||||
Income related to lease payments
|
$
|
30,741
|
|
|
$
|
31,793
|
|
|
$
|
30,381
|
|
Depreciation expense
|
25,128
|
|
|
26,248
|
|
|
25,215
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Land
|
|
$
|
15,222
|
|
|
$
|
15,223
|
|
Buildings and improvements
|
|
59,508
|
|
|
59,691
|
|
||
Furniture and equipment
|
|
41,831
|
|
|
40,789
|
|
||
Total premises and equipment
|
|
116,561
|
|
|
115,703
|
|
||
Accumulated depreciation and amortization
|
|
(64,342
|
)
|
|
(63,564
|
)
|
||
Net premises and equipment
|
|
$
|
52,219
|
|
|
$
|
52,139
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Mortgage servicing rights:
|
|
|
|
|
|
|
||
Balance at beginning of year
|
|
$
|
4,283
|
|
|
$
|
4,349
|
|
Additions
|
|
1,229
|
|
|
890
|
|
||
Amortization
|
|
(1,312
|
)
|
|
(956
|
)
|
||
Sales
|
|
—
|
|
|
—
|
|
||
Carrying value before valuation allowance at end of year
|
|
4,200
|
|
|
4,283
|
|
||
Valuation allowance:
|
|
|
|
|
|
|
||
Balance at beginning of year
|
|
—
|
|
|
—
|
|
||
Impairment recoveries
|
|
—
|
|
|
—
|
|
||
Balance at end of year
|
|
$
|
—
|
|
|
$
|
—
|
|
Net carrying value of mortgage servicing rights at end of year
|
|
$
|
4,200
|
|
|
$
|
4,283
|
|
Fair value of mortgage servicing rights at end of year
|
|
$
|
5,986
|
|
|
$
|
7,238
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Other intangibles:
|
|
|
|
|
|
|
||
Gross carrying amount
|
|
$
|
204
|
|
|
$
|
204
|
|
Less: accumulated amortization
|
|
(100
|
)
|
|
(71
|
)
|
||
Net carrying amount
|
|
$
|
104
|
|
|
$
|
133
|
|
(Dollars in thousands)
|
|
|
||
Under 3 months
|
|
$
|
199,375
|
|
4 – 6 months
|
|
170,902
|
|
|
7 – 12 months
|
|
156,874
|
|
|
Over 12 months
|
|
222,284
|
|
|
Total
|
|
$
|
749,435
|
|
(Dollars in thousands)
|
|
|
||
2020
|
|
$
|
1,256,577
|
|
2021
|
|
227,115
|
|
|
2022
|
|
105,218
|
|
|
2023
|
|
49,999
|
|
|
2024
|
|
7,496
|
|
|
Thereafter
|
|
2,093
|
|
|
Total
|
|
$
|
1,648,498
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Federal Home Loan Bank borrowings (1.04% – 5.04%)
|
|
$
|
45,819
|
|
|
$
|
46,444
|
|
Mandatorily redeemable securities
|
|
17,972
|
|
|
16,542
|
|
||
Other long-term debt
|
|
7,848
|
|
|
8,137
|
|
||
Total long-term debt and mandatorily redeemable securities
|
|
$
|
71,639
|
|
|
$
|
71,123
|
|
|
|
2019
|
|
2018
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Weighted Average Rate
|
|
Amount
|
|
Weighted Average Rate
|
||||||
Federal funds purchased
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
10,000
|
|
|
2.70
|
%
|
Security repurchase agreements
|
|
120,459
|
|
|
0.23
|
|
|
103,627
|
|
|
0.25
|
|
||
Commercial paper
|
|
3,993
|
|
|
0.29
|
|
|
4,325
|
|
|
0.29
|
|
||
Federal Home Loan Bank advances
|
|
20,000
|
|
|
1.61
|
|
|
80,000
|
|
|
2.57
|
|
||
Other short-term borrowings
|
|
1,441
|
|
|
—
|
|
|
1,392
|
|
|
—
|
|
||
Total short-term borrowings
|
|
$
|
145,893
|
|
|
0.42
|
%
|
|
$
|
199,344
|
|
|
1.30
|
%
|
•
|
The entity does not have sufficient equity to conduct its activities without additional subordinated financial support from another party.
|
•
|
The entity’s investors lack the power to direct the activities that most significantly affect the entity’s economic performance.
|
•
|
The entity’s at-risk holders do not have the obligation to absorb the losses or the right to receive residual returns.
|
•
|
The voting rights of some investors are not proportional to their economic interests in the entity, and substantially all of the entity’s activities involve, or are conducted on behalf of, investors with disproportionately few voting rights.
|
(Dollars in thousands)
|
2019
|
2018
|
||||
Investment carrying amount
|
$
|
19,843
|
|
$
|
15,083
|
|
Unfunded capital and other commitments
|
17,420
|
|
6,449
|
|
||
Maximum exposure to loss
|
37,904
|
|
40,705
|
|
(Dollars in thousands)
|
|
Amount of Subordinated Notes
|
|
Interest Rate
|
|
Maturity Date
|
|||
June 2007 issuance (1)
|
|
$
|
41,238
|
|
|
7.22
|
%
|
|
6/15/2037
|
August 2007 issuance (2)
|
|
17,526
|
|
|
3.37
|
%
|
|
9/15/2037
|
|
Total
|
|
$
|
58,764
|
|
|
|
|
|
|
|
(Dollars in thousands - except per share amounts)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Distributed earnings allocated to common stock
|
|
$
|
28,188
|
|
|
$
|
24,894
|
|
|
$
|
19,701
|
|
Undistributed earnings allocated to common stock
|
|
63,254
|
|
|
56,975
|
|
|
47,830
|
|
|||
Net earnings allocated to common stock
|
|
91,442
|
|
|
81,869
|
|
|
67,531
|
|
|||
Net earnings allocated to participating securities
|
|
518
|
|
|
545
|
|
|
520
|
|
|||
Net income allocated to common stock and participating securities
|
|
$
|
91,960
|
|
|
$
|
82,414
|
|
|
$
|
68,051
|
|
|
|
|
|
|
|
|
||||||
Weighted average shares outstanding for basic earnings per common share
|
|
25,600,138
|
|
|
25,937,599
|
|
|
25,925,820
|
|
|||
Dilutive effect of stock compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Weighted average shares outstanding for diluted earnings per common share
|
|
25,600,138
|
|
|
25,937,599
|
|
|
25,925,820
|
|
|||
|
|
|
|
|
|
|
||||||
Basic earnings per common share
|
|
$
|
3.57
|
|
|
$
|
3.16
|
|
|
$
|
2.60
|
|
Diluted earnings per common share
|
|
$
|
3.57
|
|
|
$
|
3.16
|
|
|
$
|
2.60
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
Affected Line Item in the Statements of Income
|
||||
Realized (losses) gains included in net income
|
|
$
|
—
|
|
|
$
|
(345
|
)
|
|
(Losses) gains on investment securities available-for-sale
|
|
|
—
|
|
|
(345
|
)
|
|
Income before income taxes
|
||
Tax effect
|
|
—
|
|
|
83
|
|
|
Income tax expense
|
||
Net of tax
|
|
$
|
—
|
|
|
$
|
(262
|
)
|
|
Net income
|
|
|
|
Non-Vested Stock Awards Outstanding
|
||||||
|
Shares Available for Grant
|
|
Number of Shares
|
|
Weighted-Average Grant-Date Fair Value
|
||||
Balance, January 1, 2017
|
714,005
|
|
|
276,615
|
|
|
$
|
23.94
|
|
Shares authorized - 2017 EIP
|
59,064
|
|
|
—
|
|
|
—
|
|
|
Granted
|
(98,625
|
)
|
|
98,625
|
|
|
33.54
|
|
|
Stock awards vested
|
—
|
|
|
(76,858
|
)
|
|
22.71
|
|
|
Forfeited
|
2,000
|
|
|
(2,456
|
)
|
|
29.93
|
|
|
Balance, December 31, 2017
|
676,444
|
|
|
295,926
|
|
|
27.41
|
|
|
Shares authorized - 2018 EIP
|
70,461
|
|
|
—
|
|
|
—
|
|
|
Granted
|
(74,981
|
)
|
|
74,981
|
|
|
29.11
|
|
|
Stock awards vested
|
—
|
|
|
(106,513
|
)
|
|
25.79
|
|
|
Forfeited
|
3,135
|
|
|
(10,575
|
)
|
|
27.51
|
|
|
Balance, December 31, 2018
|
675,059
|
|
|
253,819
|
|
|
28.59
|
|
|
Shares authorized - 2019 EIP
|
62,538
|
|
|
—
|
|
|
—
|
|
|
Granted
|
(74,336
|
)
|
|
74,336
|
|
|
31.44
|
|
|
Stock awards vested
|
—
|
|
|
(100,299
|
)
|
|
28.35
|
|
|
Forfeited
|
1,241
|
|
|
(8,865
|
)
|
|
30.28
|
|
|
Balance, December 31, 2019
|
664,502
|
|
|
218,991
|
|
|
$
|
29.60
|
|
Year Ended December 31 (Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Current:
|
|
|
|
|
|
|
|
|
|
|||
Federal
|
|
$
|
28,130
|
|
|
$
|
20,167
|
|
|
$
|
26,012
|
|
State
|
|
5,739
|
|
|
2,996
|
|
|
4,530
|
|
|||
Total current
|
|
33,869
|
|
|
23,163
|
|
|
30,542
|
|
|||
Deferred:
|
|
|
|
|
|
|
|
|
|
|||
Federal
|
|
(5,135
|
)
|
|
(875
|
)
|
|
5,869
|
|
|||
State
|
|
(595
|
)
|
|
1,200
|
|
|
(488
|
)
|
|||
Deferred tax liability remeasurement
|
|
—
|
|
|
(875
|
)
|
|
(2,614
|
)
|
|||
Total deferred
|
|
(5,730
|
)
|
|
(550
|
)
|
|
2,767
|
|
|||
Total provision
|
|
$
|
28,139
|
|
|
$
|
22,613
|
|
|
$
|
33,309
|
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
Year Ended December 31 (Dollars in thousands)
|
|
Amount
|
|
Percent of Pretax Income
|
|
Amount
|
|
Percent of Pretax Income
|
|
Amount
|
|
Percent of Pretax Income
|
|||||||||
Statutory federal income tax
|
|
$
|
25,232
|
|
|
21.0
|
%
|
|
$
|
22,056
|
|
|
21.0
|
%
|
|
$
|
35,476
|
|
|
35.0
|
%
|
(Decrease) increase in income taxes resulting from:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Tax-exempt interest income
|
|
(552
|
)
|
|
(0.5
|
)
|
|
(650
|
)
|
|
(0.6
|
)
|
|
(1,197
|
)
|
|
(1.2
|
)
|
|||
State taxes, net of federal income tax benefit
|
|
4,064
|
|
|
3.4
|
|
|
3,315
|
|
|
3.2
|
|
|
2,627
|
|
|
2.6
|
|
|||
Deferred tax liability remeasurement
|
|
—
|
|
|
—
|
|
|
(875
|
)
|
|
(0.8
|
)
|
|
(2,614
|
)
|
|
(2.6
|
)
|
|||
Other
|
|
(605
|
)
|
|
(0.5
|
)
|
|
(1,233
|
)
|
|
(1.3
|
)
|
|
(983
|
)
|
|
(0.9
|
)
|
|||
Total
|
|
$
|
28,139
|
|
|
23.4
|
%
|
|
$
|
22,613
|
|
|
21.5
|
%
|
|
$
|
33,309
|
|
|
32.9
|
%
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
|
|
|
||
Reserve for loan and lease losses
|
|
$
|
28,792
|
|
|
$
|
25,386
|
|
Operating lease liability
|
|
5,899
|
|
|
—
|
|
||
Accruals for employee benefits
|
|
2,842
|
|
|
2,974
|
|
||
Net unrealized losses on securities available-for-sale
|
|
—
|
|
|
3,386
|
|
||
Other
|
|
222
|
|
|
127
|
|
||
Total deferred tax assets
|
|
37,755
|
|
|
31,873
|
|
||
Deferred tax liabilities:
|
|
|
|
|
|
|
||
Differing depreciable bases in premises and leased equipment
|
|
18,614
|
|
|
21,184
|
|
||
Right of use assets - leases
|
|
5,899
|
|
|
—
|
|
||
Differing bases in assets related to acquisitions
|
|
4,092
|
|
|
4,021
|
|
||
Tax advantaged partnerships
|
|
4,383
|
|
|
4,354
|
|
||
Net unrealized gains on securities available-for-sale
|
|
1,640
|
|
|
—
|
|
||
Mortgage servicing
|
|
394
|
|
|
586
|
|
||
Capitalized loan costs
|
|
1,207
|
|
|
1,110
|
|
||
Prepaid expenses
|
|
297
|
|
|
273
|
|
||
Other
|
|
544
|
|
|
364
|
|
||
Total deferred tax liabilities
|
|
37,070
|
|
|
31,892
|
|
||
Net deferred tax asset (liability)
|
|
$
|
685
|
|
|
$
|
(19
|
)
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance, beginning of year
|
|
$
|
—
|
|
|
$
|
1,112
|
|
|
$
|
762
|
|
Additions based on tax positions related to the current year
|
|
—
|
|
|
—
|
|
|
350
|
|
|||
Additions for tax positions of prior years
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Reductions for tax positions of prior years
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Reductions due to lapse in statute of limitations
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
|
—
|
|
|
(1,112
|
)
|
|
—
|
|
|||
Balance, end of year
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,112
|
|
(Dollars in thousands)
|
Statement of Financial Condition classification
|
2019
|
||
Operating lease right of use assets
|
Accrued income and other assets
|
$
|
24,147
|
|
Operating lease liabilities
|
Accrued expenses and other liabilities
|
$
|
24,319
|
|
(Dollars in thousands)
|
Statement of Income classification
|
2019
|
||
Operating lease cost
|
Net occupancy expense
|
$
|
3,506
|
|
Short-term lease cost
|
Net occupancy expense
|
41
|
|
|
Variable lease cost
|
Net occupancy expense
|
—
|
|
|
Total operating lease cost
|
|
$
|
3,547
|
|
(Dollars in thousands)
|
2019
|
||
Weighted average remaining lease term
|
10.88 years
|
|
|
Weighted average discount rate
|
2.83
|
%
|
|
Cash paid for amounts included in the measurement of lease liabilities:
|
|
||
Operating cash flows from operating leases
|
$
|
950
|
|
(Dollars in thousands)
|
|
2019
|
|
2018
|
||||
Amounts of commitments:
|
|
|
|
|
||||
Loan commitments to extend credit
|
|
$
|
1,095,054
|
|
|
$
|
1,095,053
|
|
Standby letters of credit
|
|
$
|
27,549
|
|
|
$
|
31,133
|
|
Commercial and similar letters of credit
|
|
$
|
2,332
|
|
|
$
|
2,500
|
|
|
|
|
|
Asset derivatives
|
|
Liability derivatives
|
||||||||||
(Dollars in thousands)
|
|
Notional or contractual amount
|
|
Statement of Financial Condition classification
|
|
Fair value
|
|
Statement of Financial Condition classification
|
|
Fair value
|
||||||
Interest rate swap contracts
|
|
$
|
1,074,809
|
|
|
Other assets
|
|
$
|
21,975
|
|
|
Other liabilities
|
|
$
|
22,352
|
|
Loan commitments
|
|
9,950
|
|
|
Mortgages held for sale
|
|
185
|
|
|
N/A
|
|
—
|
|
|||
Forward contracts - mortgage loan
|
|
23,632
|
|
|
N/A
|
|
—
|
|
|
Mortgages held for sale
|
|
38
|
|
|||
Total - December 31, 2019
|
|
$
|
1,108,391
|
|
|
|
|
$
|
22,160
|
|
|
|
|
$
|
22,390
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Interest rate swap contracts
|
|
$
|
855,848
|
|
|
Other assets
|
|
$
|
7,124
|
|
|
Other liabilities
|
|
$
|
7,250
|
|
Loan commitments
|
|
5,871
|
|
|
Mortgages held for sale
|
|
112
|
|
|
N/A
|
|
—
|
|
|||
Forward contracts - mortgage loan
|
|
14,087
|
|
|
N/A
|
|
—
|
|
|
Mortgages held for sale
|
|
135
|
|
|||
Total - December 31, 2018
|
|
$
|
875,806
|
|
|
|
|
$
|
7,236
|
|
|
|
|
$
|
7,385
|
|
|
|
|
|
Gain (loss)
|
||||||||||
(Dollars in thousands)
|
|
Statement of Income classification
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest rate swap contracts
|
|
Other expense
|
|
$
|
(252
|
)
|
|
$
|
(30
|
)
|
|
$
|
26
|
|
Interest rate swap contracts
|
|
Other income
|
|
1,356
|
|
|
1,028
|
|
|
1,585
|
|
|||
Loan commitments
|
|
Mortgage banking
|
|
73
|
|
|
46
|
|
|
23
|
|
|||
Forward contracts - mortgage loan
|
|
Mortgage banking
|
|
97
|
|
|
(125
|
)
|
|
(232
|
)
|
|||
Total
|
|
|
|
$
|
1,274
|
|
|
$
|
919
|
|
|
$
|
1,402
|
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Statement of Financial Condition
|
|
|
||||||||||||||
(Dollars in thousands)
|
|
Gross Amounts of Recognized Assets
|
|
Gross Amounts Offset in the Statement of Financial Condition
|
|
Net Amounts of Assets Presented in the Statement of Financial Condition
|
|
Financial Instruments
|
|
Cash Collateral Received
|
|
Net Amount
|
||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
22,279
|
|
|
$
|
304
|
|
|
$
|
21,975
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21,975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
7,128
|
|
|
$
|
4
|
|
|
$
|
7,124
|
|
|
$
|
177
|
|
|
$
|
610
|
|
|
$
|
6,337
|
|
|
|
|
|
|
|
|
|
Gross Amounts Not Offset in the Statement of Financial Condition
|
|
|
||||||||||||||
(Dollars in thousands)
|
|
Gross Amounts of Recognized Liabilities
|
|
Gross Amounts Offset in the Statement of Financial Condition
|
|
Net Amounts of Liabilities Presented in the Statement of Financial Condition
|
|
Financial Instruments
|
|
Cash Collateral Pledged
|
|
Net Amount
|
||||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
22,656
|
|
|
$
|
304
|
|
|
$
|
22,352
|
|
|
$
|
23,482
|
|
|
$
|
—
|
|
|
$
|
(1,130
|
)
|
Repurchase agreements
|
|
120,459
|
|
|
—
|
|
|
120,459
|
|
|
120,459
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
143,115
|
|
|
$
|
304
|
|
|
$
|
142,811
|
|
|
$
|
143,941
|
|
|
$
|
—
|
|
|
$
|
(1,130
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Interest rate swaps
|
|
$
|
7,254
|
|
|
$
|
4
|
|
|
$
|
7,250
|
|
|
$
|
1,700
|
|
|
$
|
—
|
|
|
$
|
5,550
|
|
Repurchase agreements
|
|
103,627
|
|
|
—
|
|
|
103,627
|
|
|
103,627
|
|
|
—
|
|
|
—
|
|
||||||
Total
|
|
$
|
110,881
|
|
|
$
|
4
|
|
|
$
|
110,877
|
|
|
$
|
105,327
|
|
|
$
|
—
|
|
|
$
|
5,550
|
|
|
|
Actual
|
|
Minimum Capital Adequacy
|
|
Minimum Capital Adequacy with Capital Buffer(1)
|
|
To Be Well Capitalized Under Prompt Corrective Action Provisions
|
||||||||||||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Capital (to Risk-Weighted Assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
1st Source Corporation
|
|
$
|
882,453
|
|
|
14.90
|
%
|
|
$
|
473,782
|
|
|
8.00
|
%
|
|
$
|
621,839
|
|
|
10.50
|
%
|
|
$
|
592,227
|
|
|
10.00
|
%
|
1st Source Bank
|
|
804,131
|
|
|
13.57
|
|
|
474,189
|
|
|
8.00
|
|
|
622,373
|
|
|
10.50
|
|
|
592,736
|
|
|
10.00
|
|
||||
Tier 1 Capital (to Risk-Weighted Assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
1st Source Corporation
|
|
807,926
|
|
|
13.64
|
|
|
355,336
|
|
|
6.00
|
|
|
503,393
|
|
|
8.50
|
|
|
473,782
|
|
|
8.00
|
|
||||
1st Source Bank
|
|
729,541
|
|
|
12.31
|
|
|
355,642
|
|
|
6.00
|
|
|
503,826
|
|
|
8.50
|
|
|
474,189
|
|
|
8.00
|
|
||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
1st Source Corporation
|
|
743,467
|
|
|
12.55
|
|
|
266,502
|
|
|
4.50
|
|
|
414,559
|
|
|
7.00
|
|
|
384,948
|
|
|
6.50
|
|
||||
1st Source Bank
|
|
722,082
|
|
|
12.18
|
|
|
266,731
|
|
|
4.50
|
|
|
414,915
|
|
|
7.00
|
|
|
385,279
|
|
|
6.50
|
|
||||
Tier 1 Capital (to Average Assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
1st Source Corporation
|
|
807,926
|
|
|
12.19
|
|
|
265,122
|
|
|
4.00
|
|
|
N/A
|
|
|
N/A
|
|
|
331,402
|
|
|
5.00
|
|
||||
1st Source Bank
|
|
729,541
|
|
|
11.03
|
|
|
264,500
|
|
|
4.00
|
|
|
N/A
|
|
|
N/A
|
|
|
330,625
|
|
|
5.00
|
|
||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Total Capital (to Risk-Weighted Assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
1st Source Corporation
|
|
$
|
821,975
|
|
|
14.68
|
%
|
|
$
|
447,909
|
|
|
8.00
|
%
|
|
$
|
552,888
|
|
|
9.875
|
%
|
|
$
|
559,887
|
|
|
10.00
|
%
|
1st Source Bank
|
|
744,326
|
|
|
13.29
|
|
|
448,152
|
|
|
8.00
|
|
|
553,188
|
|
|
9.875
|
|
|
560,190
|
|
|
10.00
|
|
||||
Tier 1 Capital (to Risk-Weighted Assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
1st Source Corporation
|
|
751,575
|
|
|
13.42
|
|
|
335,932
|
|
|
6.00
|
|
|
440,911
|
|
|
7.875
|
|
|
447,909
|
|
|
8.00
|
|
||||
1st Source Bank
|
|
673,888
|
|
|
12.03
|
|
|
336,114
|
|
|
6.00
|
|
|
441,150
|
|
|
7.875
|
|
|
448,152
|
|
|
8.00
|
|
||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
1st Source Corporation
|
|
693,067
|
|
|
12.38
|
|
|
251,949
|
|
|
4.50
|
|
|
356,928
|
|
|
6.375
|
|
|
363,926
|
|
|
6.50
|
|
||||
1st Source Bank
|
|
672,380
|
|
|
12.00
|
|
|
252,086
|
|
|
4.50
|
|
|
357,121
|
|
|
6.375
|
|
|
364,124
|
|
|
6.50
|
|
||||
Tier 1 Capital (to Average Assets):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
1st Source Corporation
|
|
751,575
|
|
|
12.06
|
|
|
249,185
|
|
|
4.00
|
|
|
N/A
|
|
|
N/A
|
|
|
311,481
|
|
|
5.00
|
|
||||
1st Source Bank
|
|
673,888
|
|
|
10.82
|
|
|
249,052
|
|
|
4.00
|
|
|
N/A
|
|
|
N/A
|
|
|
311,315
|
|
|
5.00
|
|
|
(Dollars in thousands)
|
|
Fair value carrying amount
|
|
Aggregate unpaid principal
|
|
Excess of fair value carrying amount over (under) unpaid principal
|
|
||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|||
Mortgages held for sale reported at fair value:
|
|
|
|
|
|
|
|
|
|
|
|||
Total Loans
|
|
$
|
20,277
|
|
|
$
|
19,890
|
|
|
$
|
387
|
|
(1)
|
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|||
Mortgages held for sale reported at fair value:
|
|
|
|
|
|
|
|
|
|
|
|||
Total Loans
|
|
$
|
11,290
|
|
|
$
|
11,076
|
|
|
$
|
214
|
|
(1)
|
|
•
|
U.S. treasuries are priced using the market approach and utilizing live data feeds from active market exchanges for identical securities.
|
•
|
Government-sponsored agency debt securities and corporate bonds are primarily priced using available market information through processes such as benchmark curves, market valuations of like securities, sector groupings and matrix pricing.
|
•
|
Other government-sponsored agency securities, mortgage-backed securities and some of the actively traded REMICs and CMOs, are primarily priced using available market information including benchmark yields, prepayment speeds, spreads and volatility of similar securities.
|
•
|
Inactively traded government-sponsored agency securities are primarily priced using consensus pricing and dealer quotes.
|
•
|
State and political subdivisions are largely grouped by characteristics, i.e., geographical data and source of revenue in trade dissemination systems. Since some securities are not traded daily and due to other grouping limitations, active market quotes are often obtained using benchmarking for like securities. Local direct placement municipal securities, with very little market activity, are priced using an appropriate market yield curve which incorporates a credit spread assumption.
|
(Dollars in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury and Federal agencies securities
|
|
$
|
80,393
|
|
|
$
|
446,571
|
|
|
$
|
—
|
|
|
$
|
526,964
|
|
U.S. States and political subdivisions securities
|
|
—
|
|
|
82,213
|
|
|
2,292
|
|
|
84,505
|
|
||||
Mortgage-backed securities - Federal agencies
|
|
—
|
|
|
375,389
|
|
|
—
|
|
|
375,389
|
|
||||
Corporate debt securities
|
|
—
|
|
|
53,025
|
|
|
—
|
|
|
53,025
|
|
||||
Foreign government and other securities
|
|
—
|
|
|
700
|
|
|
—
|
|
|
700
|
|
||||
Total debt securities available-for-sale
|
|
80,393
|
|
|
957,898
|
|
|
2,292
|
|
|
1,040,583
|
|
||||
Mortgages held for sale
|
|
—
|
|
|
20,277
|
|
|
—
|
|
|
20,277
|
|
||||
Accrued income and other assets (interest rate swap agreements)
|
|
—
|
|
|
21,975
|
|
|
—
|
|
|
21,975
|
|
||||
Total
|
|
$
|
80,393
|
|
|
$
|
1,000,150
|
|
|
$
|
2,292
|
|
|
$
|
1,082,835
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses and other liabilities (interest rate swap agreements)
|
|
$
|
—
|
|
|
$
|
22,352
|
|
|
$
|
—
|
|
|
$
|
22,352
|
|
Total
|
|
$
|
—
|
|
|
$
|
22,352
|
|
|
$
|
—
|
|
|
$
|
22,352
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Investment securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury and Federal agencies securities
|
|
$
|
33,746
|
|
|
$
|
497,477
|
|
|
$
|
—
|
|
|
$
|
531,223
|
|
U.S. States and political subdivisions securities
|
|
—
|
|
|
93,557
|
|
|
1,025
|
|
|
94,582
|
|
||||
Mortgage-backed securities - Federal agencies
|
|
—
|
|
|
318,233
|
|
|
—
|
|
|
318,233
|
|
||||
Corporate debt securities
|
|
—
|
|
|
45,392
|
|
|
—
|
|
|
45,392
|
|
||||
Foreign government and other securities
|
|
—
|
|
|
699
|
|
|
—
|
|
|
699
|
|
||||
Total debt securities available-for-sale
|
|
33,746
|
|
|
955,358
|
|
|
1,025
|
|
|
990,129
|
|
||||
Mortgages held for sale
|
|
—
|
|
|
11,290
|
|
|
—
|
|
|
11,290
|
|
||||
Accrued income and other assets (interest rate swap agreements)
|
|
—
|
|
|
7,124
|
|
|
—
|
|
|
7,124
|
|
||||
Total
|
|
$
|
33,746
|
|
|
$
|
973,772
|
|
|
$
|
1,025
|
|
|
$
|
1,008,543
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Accrued expenses and other liabilities (interest rate swap agreements)
|
|
$
|
—
|
|
|
$
|
7,250
|
|
|
$
|
—
|
|
|
$
|
7,250
|
|
Total
|
|
$
|
—
|
|
|
$
|
7,250
|
|
|
$
|
—
|
|
|
$
|
7,250
|
|
(Dollars in thousands)
|
|
U.S. States and political subdivisions securities
|
|
Foreign government and other securities
|
|
Investment securities available-for-sale
|
||||||
Beginning balance January 1, 2019
|
|
$
|
1,025
|
|
|
$
|
—
|
|
|
$
|
1,025
|
|
Total gains or losses (realized/unrealized):
|
|
|
|
|
|
|
|
|
||||
Included in earnings
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Included in other comprehensive income
|
|
(35
|
)
|
|
—
|
|
|
(35
|
)
|
|||
Purchases
|
|
5,600
|
|
|
—
|
|
|
5,600
|
|
|||
Issuances
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Maturities
|
|
(4,298
|
)
|
|
—
|
|
|
(4,298
|
)
|
|||
Transfers into Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Transfers out of Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Ending balance December 31, 2019
|
|
$
|
2,292
|
|
|
$
|
—
|
|
|
$
|
2,292
|
|
|
|
|
|
|
|
|
||||||
Beginning balance January 1, 2018
|
|
$
|
2,155
|
|
|
$
|
710
|
|
|
$
|
2,865
|
|
Total gains or losses (realized/unrealized):
|
|
|
|
|
|
|
|
|
||||
Included in earnings
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Included in other comprehensive income
|
|
6
|
|
|
(11
|
)
|
|
(5
|
)
|
|||
Purchases
|
|
—
|
|
|
200
|
|
|
200
|
|
|||
Issuances
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Sales
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Settlements
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Maturities
|
|
(1,136
|
)
|
|
(200
|
)
|
|
(1,336
|
)
|
|||
Transfers into Level 3
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Transfers out of Level 3
|
|
—
|
|
|
(699
|
)
|
|
(699
|
)
|
|||
Ending balance December 31, 2018
|
|
$
|
1,025
|
|
|
$
|
—
|
|
|
$
|
1,025
|
|
(Dollars in thousands)
|
|
Fair value
|
|
Valuation Methodology
|
|
Unobservable Inputs
|
|
Range of Inputs
|
||
December 31, 2019
|
|
|
|
|
|
|
|
|
||
Debt securities available-for-sale
|
|
|
|
|
|
|
|
|
|
|
Direct placement municipal securities
|
|
$
|
2,292
|
|
|
Discounted cash flows
|
|
Credit spread assumption
|
|
0.12% - 2.85%
|
|
|
|
|
|
|
|
|
|
||
December 31, 2018
|
|
|
|
|
|
|
|
|
||
Debt securities available-for-sale
|
|
|
|
|
|
|
|
|
||
Direct placement municipal securities
|
|
$
|
1,025
|
|
|
Discounted cash flows
|
|
Credit spread assumption
|
|
0.17% - 3.02%
|
(Dollars in thousands)
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans - collateral based
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,492
|
|
|
$
|
8,492
|
|
Accrued income and other assets (mortgage servicing rights)
|
|
—
|
|
|
—
|
|
|
4,200
|
|
|
4,200
|
|
||||
Accrued income and other assets (repossessions)
|
|
—
|
|
|
—
|
|
|
8,623
|
|
|
8,623
|
|
||||
Accrued income and other assets (other real estate)
|
|
—
|
|
|
—
|
|
|
522
|
|
|
522
|
|
||||
Total
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
21,837
|
|
|
$
|
21,837
|
|
|
|
|
|
|
|
|
|
|
||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans - collateral based
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,306
|
|
|
$
|
7,306
|
|
Accrued income and other assets (mortgage servicing rights)
|
|
—
|
|
|
—
|
|
|
4,283
|
|
|
4,283
|
|
||||
Accrued income and other assets (repossessions)
|
|
—
|
|
|
—
|
|
|
6,666
|
|
|
6,666
|
|
||||
Accrued income and other assets (other real estate)
|
|
—
|
|
|
—
|
|
|
299
|
|
|
299
|
|
||||
Total
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
18,554
|
|
|
$
|
18,554
|
|
(Dollars in thousands)
|
|
Carrying Value
|
|
Fair value
|
|
Valuation Methodology
|
|
Unobservable Inputs
|
|
Range of Inputs
|
||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans
|
|
$
|
8,492
|
|
|
$
|
8,492
|
|
|
Collateral based measurements including appraisals, trade publications, and auction values
|
|
Discount for lack of marketability and current conditions
|
|
0% - 90%
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mortgage servicing rights
|
|
4,200
|
|
|
5,986
|
|
|
Discounted cash flows
|
|
Constant prepayment rate (CPR)
|
|
10.2% - 28.1%
|
||
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
9.3% - 12.1%
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Repossessions
|
|
8,623
|
|
|
9,211
|
|
|
Appraisals, trade publications and auction values
|
|
Discount for lack of marketability
|
|
3% - 25%
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Other real estate
|
|
522
|
|
|
564
|
|
|
Appraisals
|
|
Discount for lack of marketability
|
|
0% - 11%
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
||||
Impaired loans
|
|
$
|
7,306
|
|
|
$
|
7,306
|
|
|
Collateral based measurements including appraisals, trade publications, and auction values
|
|
Discount for lack of marketability and current conditions
|
|
20% - 35%
|
|
|
|
|
|
|
|
|
|
|
|
||||
Mortgage servicing rights
|
|
4,283
|
|
|
7,238
|
|
|
Discounted cash flows
|
|
Constant prepayment rate (CPR)
|
|
7.2% - 24.8%
|
||
|
|
|
|
|
|
|
|
|
|
Discount rate
|
|
10.3% - 13.1%
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Repossessions
|
|
6,666
|
|
|
6,991
|
|
|
Appraisals, trade publications and auction values
|
|
Discount for lack of marketability
|
|
4% - 6%
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Other real estate
|
|
299
|
|
|
305
|
|
|
Appraisals
|
|
Discount for lack of marketability
|
|
0% - 10%
|
(Dollars in thousands)
|
|
Carrying or Contract Value
|
|
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from banks
|
|
$
|
67,215
|
|
|
$
|
67,215
|
|
|
$
|
67,215
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal funds sold and interest bearing deposits with other banks
|
|
16,150
|
|
|
16,150
|
|
|
16,150
|
|
|
—
|
|
|
—
|
|
|||||
Investment securities, available-for-sale
|
|
1,040,583
|
|
|
1,040,583
|
|
|
80,393
|
|
|
957,898
|
|
|
2,292
|
|
|||||
Other investments
|
|
28,414
|
|
|
28,414
|
|
|
28,414
|
|
|
—
|
|
|
—
|
|
|||||
Mortgages held for sale
|
|
20,277
|
|
|
20,277
|
|
|
—
|
|
|
20,277
|
|
|
—
|
|
|||||
Loans and leases, net of reserve for loan and lease losses
|
|
4,974,273
|
|
|
4,992,684
|
|
|
—
|
|
|
—
|
|
|
4,992,684
|
|
|||||
Mortgage servicing rights
|
|
4,200
|
|
|
5,986
|
|
|
—
|
|
|
—
|
|
|
5,986
|
|
|||||
Accrued interest receivable
|
|
19,125
|
|
|
19,125
|
|
|
—
|
|
|
19,125
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
21,975
|
|
|
21,975
|
|
|
—
|
|
|
21,975
|
|
|
—
|
|
|||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
|
$
|
5,357,326
|
|
|
$
|
5,362,633
|
|
|
$
|
3,708,828
|
|
|
$
|
1,653,805
|
|
|
$
|
—
|
|
Short-term borrowings
|
|
145,893
|
|
|
145,893
|
|
|
120,891
|
|
|
25,002
|
|
|
—
|
|
|||||
Long-term debt and mandatorily redeemable securities
|
|
71,639
|
|
|
71,084
|
|
|
—
|
|
|
71,084
|
|
|
—
|
|
|||||
Subordinated notes
|
|
58,764
|
|
|
61,469
|
|
|
—
|
|
|
61,469
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
13,918
|
|
|
13,918
|
|
|
—
|
|
|
13,918
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
22,352
|
|
|
22,352
|
|
|
—
|
|
|
22,352
|
|
|
—
|
|
|||||
Off-balance-sheet instruments *
|
|
—
|
|
|
281
|
|
|
—
|
|
|
281
|
|
|
—
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cash and due from banks
|
|
$
|
94,907
|
|
|
$
|
94,907
|
|
|
$
|
94,907
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Federal funds sold and interest bearing deposits with other banks
|
|
4,172
|
|
|
4,172
|
|
|
4,172
|
|
|
—
|
|
|
—
|
|
|||||
Investment securities, available-for-sale
|
|
990,129
|
|
|
990,129
|
|
|
33,746
|
|
|
955,358
|
|
|
1,025
|
|
|||||
Other investments
|
|
28,404
|
|
|
28,404
|
|
|
28,404
|
|
|
—
|
|
|
—
|
|
|||||
Mortgages held for sale
|
|
11,290
|
|
|
11,290
|
|
|
—
|
|
|
11,290
|
|
|
—
|
|
|||||
Loans and leases, net of reserve for loan and lease losses
|
|
4,734,995
|
|
|
4,689,267
|
|
|
—
|
|
|
—
|
|
|
4,689,267
|
|
|||||
Mortgage servicing rights
|
|
4,283
|
|
|
7,238
|
|
|
—
|
|
|
—
|
|
|
7,238
|
|
|||||
Accrued interest receivable
|
|
18,880
|
|
|
18,880
|
|
|
—
|
|
|
18,880
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
7,124
|
|
|
7,124
|
|
|
—
|
|
|
7,124
|
|
|
—
|
|
|||||
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits
|
|
$
|
5,122,322
|
|
|
$
|
5,111,711
|
|
|
$
|
3,654,556
|
|
|
$
|
1,457,155
|
|
|
$
|
—
|
|
Short-term borrowings
|
|
199,344
|
|
|
199,344
|
|
|
113,734
|
|
|
85,610
|
|
|
—
|
|
|||||
Long-term debt and mandatorily redeemable securities
|
|
71,123
|
|
|
68,751
|
|
|
—
|
|
|
68,751
|
|
|
—
|
|
|||||
Subordinated notes
|
|
58,764
|
|
|
45,874
|
|
|
—
|
|
|
45,874
|
|
|
—
|
|
|||||
Accrued interest payable
|
|
8,950
|
|
|
8,950
|
|
|
—
|
|
|
8,950
|
|
|
—
|
|
|||||
Interest rate swaps
|
|
7,250
|
|
|
7,250
|
|
|
—
|
|
|
7,250
|
|
|
—
|
|
|||||
Off-balance-sheet instruments *
|
|
—
|
|
|
259
|
|
|
—
|
|
|
259
|
|
|
—
|
|
|
December 31 (Dollars in thousands)
|
|
2019
|
|
2018
|
||||
ASSETS
|
|
|
|
|
|
|
||
Cash and cash equivalents
|
|
$
|
107,285
|
|
|
$
|
106,647
|
|
Short-term investments with bank subsidiary
|
|
500
|
|
|
500
|
|
||
Investments in:
|
|
|
|
|
|
|
||
Bank subsidiaries
|
|
806,192
|
|
|
740,697
|
|
||
Non-bank subsidiaries
|
|
1
|
|
|
1
|
|
||
Right of use assets
|
|
17,106
|
|
|
—
|
|
||
Other assets
|
|
4,442
|
|
|
4,191
|
|
||
Total assets
|
|
$
|
935,526
|
|
|
$
|
852,036
|
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
||
Commercial paper
|
|
$
|
3,993
|
|
|
$
|
4,325
|
|
Long-term debt and mandatorily redeemable securities
|
|
25,819
|
|
|
24,676
|
|
||
Subordinated notes
|
|
58,764
|
|
|
58,764
|
|
||
Operating lease liability
|
|
17,329
|
|
|
—
|
|
||
Other liabilities
|
|
1,344
|
|
|
2,189
|
|
||
Total liabilities
|
|
107,249
|
|
|
89,954
|
|
||
Total shareholders’ equity
|
|
828,277
|
|
|
762,082
|
|
||
Total liabilities and shareholders’ equity
|
|
$
|
935,526
|
|
|
$
|
852,036
|
|
Year Ended December 31 (Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Income:
|
|
|
|
|
|
|
|
|
|
|||
Dividends from bank subsidiary
|
|
$
|
46,735
|
|
|
$
|
45,080
|
|
|
$
|
38,317
|
|
Dividends from non-bank subsidiary
|
|
—
|
|
|
—
|
|
|
958
|
|
|||
Rental income from subsidiaries
|
|
2,505
|
|
|
2,613
|
|
|
2,354
|
|
|||
Other
|
|
366
|
|
|
367
|
|
|
422
|
|
|||
Investment securities and other investment gains (losses)
|
|
109
|
|
|
(180
|
)
|
|
6,431
|
|
|||
Total income
|
|
49,715
|
|
|
47,880
|
|
|
48,482
|
|
|||
Expenses:
|
|
|
|
|
|
|
|
|
|
|||
Interest on subordinated notes
|
|
3,677
|
|
|
3,625
|
|
|
4,002
|
|
|||
Interest on long-term debt and mandatorily redeemable securities
|
|
2,228
|
|
|
1,624
|
|
|
1,685
|
|
|||
Interest on commercial paper and other short-term borrowings
|
|
13
|
|
|
14
|
|
|
17
|
|
|||
Occupancy
|
|
1,861
|
|
|
1,774
|
|
|
2,070
|
|
|||
Other
|
|
586
|
|
|
642
|
|
|
1,733
|
|
|||
Total expenses
|
|
8,365
|
|
|
7,679
|
|
|
9,507
|
|
|||
Income before income tax benefit and equity in undistributed income of subsidiaries
|
|
41,350
|
|
|
40,201
|
|
|
38,975
|
|
|||
Income tax benefit
|
|
987
|
|
|
1,009
|
|
|
204
|
|
|||
Income before equity in undistributed income of subsidiaries
|
|
42,337
|
|
|
41,210
|
|
|
39,179
|
|
|||
Equity in undistributed income of subsidiaries:
|
|
|
|
|
|
|
|
|
|
|||
Bank subsidiaries
|
|
49,678
|
|
|
41,204
|
|
|
28,872
|
|
|||
Non-bank subsidiaries
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net income
|
|
$
|
92,015
|
|
|
$
|
82,414
|
|
|
$
|
68,051
|
|
Comprehensive income
|
|
$
|
107,863
|
|
|
$
|
75,788
|
|
|
$
|
63,375
|
|
Year Ended December 31 (Dollars in thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Net income
|
|
$
|
92,015
|
|
|
$
|
82,414
|
|
|
$
|
68,051
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|||
Equity (undistributed) distributed in excess of income of subsidiaries
|
|
(49,678
|
)
|
|
(41,204
|
)
|
|
(28,872
|
)
|
|||
Depreciation of premises and equipment
|
|
2
|
|
|
2
|
|
|
2
|
|
|||
Amortization of right of use assets
|
|
1,350
|
|
|
—
|
|
|
—
|
|
|||
Stock-based compensation
|
|
78
|
|
|
71
|
|
|
48
|
|
|||
Realized/unrealized investment securities and other investment (gains) losses
|
|
(109
|
)
|
|
180
|
|
|
(6,431
|
)
|
|||
Other
|
|
533
|
|
|
45
|
|
|
4,122
|
|
|||
Net change in operating activities
|
|
44,191
|
|
|
41,508
|
|
|
36,920
|
|
|||
Investing activities:
|
|
|
|
|
|
|
|
|
|
|||
Proceeds from sales and maturities of investment securities
|
|
—
|
|
|
—
|
|
|
6,327
|
|
|||
Net change in partnership investments
|
|
(260
|
)
|
|
(980
|
)
|
|
(62
|
)
|
|||
Capital contribution to subsidiary
|
|
(325
|
)
|
|
—
|
|
|
—
|
|
|||
Return of capital from subsidiaries
|
|
—
|
|
|
—
|
|
|
854
|
|
|||
Net change in investing activities
|
|
(585
|
)
|
|
(980
|
)
|
|
7,119
|
|
|||
Financing activities:
|
|
|
|
|
|
|
|
|
|
|||
Net change in commercial paper
|
|
(332
|
)
|
|
(1,790
|
)
|
|
354
|
|
|||
Proceeds from issuance of long-term debt and mandatorily redeemable securities
|
|
1,611
|
|
|
1,867
|
|
|
1,248
|
|
|||
Payments on long-term debt and mandatorily redeemable securities
|
|
(2,068
|
)
|
|
(1,064
|
)
|
|
(667
|
)
|
|||
Stock issued under stock purchase plans
|
|
49
|
|
|
145
|
|
|
153
|
|
|||
Net proceeds from issuance of treasury stock
|
|
1,878
|
|
|
1,763
|
|
|
2,176
|
|
|||
Acquisition of treasury stock
|
|
(15,085
|
)
|
|
(9,271
|
)
|
|
(41
|
)
|
|||
Cash dividends paid on common stock
|
|
(29,021
|
)
|
|
(25,686
|
)
|
|
(20,431
|
)
|
|||
Net change in financing activities
|
|
(42,968
|
)
|
|
(34,036
|
)
|
|
(17,208
|
)
|
|||
Net change in cash and cash equivalents
|
|
638
|
|
|
6,492
|
|
|
26,831
|
|
|||
Cash and cash equivalents, beginning of year
|
|
106,647
|
|
|
100,155
|
|
|
73,324
|
|
|||
Cash and cash equivalents, end of year
|
|
$
|
107,285
|
|
|
$
|
106,647
|
|
|
$
|
100,155
|
|
By
|
/s/ CHRISTOPHER J. MURPHY III
|
|
|
Christopher J. Murphy III, Chief Executive Officer
|
|
|
|
|
|
|
|
By
|
/s/ ANDREA G. SHORT
|
|
|
Andrea G. Short, Treasurer and Chief Financial Officer
|
|
|
|
(A) Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights
|
|
Weighted-average Exercise Price of Outstanding Options, Warrants and Rights
|
|
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans [excluding securities reflected in column (A)]
|
|
||||
Equity compensation plans approved by shareholders
|
|
|
|
|
|
|
|
|
|
|
|
2011 Stock Option Plan
|
|
—
|
|
|
$
|
—
|
|
|
250,000
|
|
|
1997 Employee Stock Purchase Plan
|
|
6,436
|
|
|
49.28
|
|
|
119,531
|
|
|
|
1982 Executive Incentive Plan
|
|
—
|
|
|
—
|
|
|
97,104
|
|
(1)(2)
|
|
1982 Restricted Stock Award Plan
|
|
—
|
|
|
—
|
|
|
218,753
|
|
(1)
|
|
Strategic Deployment Incentive Plan
|
|
—
|
|
|
—
|
|
|
98,645
|
|
(1)(2)
|
|
Total plans approved by shareholders
|
|
6,436
|
|
|
$
|
49.28
|
|
|
784,033
|
|
|
Equity compensation plans not approved by shareholders
|
|
|
|
|
|
|
|
||||
Director Retainer Stock Plan
|
|
—
|
|
|
—
|
|
|
35,437
|
|
|
|
Total equity compensation plans
|
|
6,436
|
|
|
$
|
49.28
|
|
|
819,470
|
|
|
|
(1)
|
Amount is to be awarded by grants administered by the Executive Compensation and Human Resources Committee of the 1st Source Corporation Board of Directors.
|
(2)
|
Amount includes market value stock only. Book value shares used for annual awards may only be sold to 1st Source.
|
3(a)
|
|
|
|
|
|
3(b)
|
|
|
|
|
|
3(c)
|
|
|
|
|
|
4(a)
|
|
Form of Common Stock Certificates of Registrant, filed as exhibit to Registration Statement 2-40481 and incorporated herein by reference.
|
|
|
|
4(b)
|
|
1st Source agrees to furnish to the Commission, upon request, a copy of each instrument defining the rights of holders of Senior and Subordinated debt of 1st Source.
|
|
|
|
10(a)(1)
|
|
Employment Agreement of Christopher J. Murphy III, dated January 1, 2008, filed as exhibit to Form 8-K, dated March 17, 2008, amended February 6, 2014, filed as exhibit to Form 8-K, dated March 12, 2014, and incorporated herein by reference.
|
|
|
|
10(a)(2)
|
|
Employment Agreement of Andrea G. Short dated January 1, 2013, filed as exhibit to Form 10-K, dated December 31, 2012, amended February 6, 2014, filed as exhibit to Form 8-K, dated March 12, 2014, and incorporated herein by reference.
|
|
|
|
10(a)(3)
|
|
Employment Agreement of John B. Griffith, dated January 1, 2008, filed as exhibit to Form 8-K, dated March 17, 2008, amended February 6, 2014, filed as exhibit to Form 8-K, dated March 12, 2014, and incorporated herein by reference.
|
|
|
|
10(a)(4)
|
|
|
|
|
|
10(a)(5)
|
|
|
|
|
|
10(b)
|
|
|
|
|
|
10(c)
|
|
|
|
|
|
10(d)
|
|
|
|
|
|
10(e)
|
|
|
|
|
|
10(f)
|
|
|
|
|
|
10(g)
|
|
21
|
|
Subsidiaries of Registrant (unless otherwise indicated, each subsidiary does business under its own name):
|
Name
|
|
Jurisdiction
|
1st Source Bank
|
|
Indiana
|
SFG Aircraft, Inc. *
(formerly known as SFG Equipment Leasing, Inc.)
|
|
Indiana
|
1st Source Insurance, Inc. *
|
|
Indiana
|
1st Source Specialty Finance, Inc. *
|
|
Indiana
|
1st Source Capital Corporation *
|
|
Indiana
|
Trustcorp Mortgage Company (Inactive)
|
|
Indiana
|
1st Source Master Trust
|
|
Delaware
|
Michigan Transportation Finance Corporation *
|
|
Michigan
|
1st Source Intermediate Holding, LLC
|
|
Delaware
|
1st Source Funding, LLC (Inactive)
|
|
Delaware
|
1st Source Corporation Investment Advisors, Inc. *
|
|
Indiana
|
SFG Commercial Aircraft Leasing, Inc. *
|
|
Indiana
|
SFG Equipment Leasing Corporation I*
|
|
Indiana
|
Washington and Michigan Insurance, Inc.*
|
|
Arizona
|
1st Source Solar 1, LLC*
|
|
Delaware
|
1st Source Solar 2, LLC
|
|
Delaware
|
1st Source Solar 3, LLC
|
|
Delaware
|
1st Source Solar 4, LLC
|
|
Delaware
|
Historic Holding, LLC*
|
|
Indiana
|
1st Source Solar 5, LLC
|
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Delaware
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1st Source Solar 6, LLC
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Delaware
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*Wholly-owned subsidiaries of 1st Source Bank
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101.INS
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XBRL Instance Document — The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
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101.SCH
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XBRL Taxonomy Extension Schema Document
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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101.LAB
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XBRL Taxonomy Extension Labels Linkbase Document
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101)
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By
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/s/ CHRISTOPHER J. MURPHY III
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Christopher J. Murphy III, Chairman of the Board
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and Chief Executive Officer
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Signature
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Title
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Date
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/s/ CHRISTOPHER J. MURPHY III
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Chairman of the Board
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February 20, 2020
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Christopher J. Murphy III
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and Chief Executive Officer
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/s/ JAMES R. SEITZ
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President
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February 20, 2020
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James R. Seitz
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/s/ ANDREA G. SHORT
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Treasurer, Chief Financial Officer
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February 20, 2020
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Andrea G. Short
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and Principal Accounting Officer
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/s/ JOHN B. GRIFFITH
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Secretary
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February 20, 2020
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John B. Griffith
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and General Counsel
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/s/ JOHN F. AFFLECK-GRAVES
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Director
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February 20, 2020
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John F. Affleck-Graves
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/s/ MELODY BIRMINGHAM
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Director
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February 20, 2020
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Melody Birmingham
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/s/ DANIEL B. FITZPATRICK
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Director
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February 20, 2020
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Daniel B. Fitzpatrick
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/s/ VINOD M. KHILNANI
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Director
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February 20, 2020
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Vinod M. Khilnani
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/s/ REX MARTIN
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Director
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February 20, 2020
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Rex Martin
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/s/ CHRISTOPHER J. MURPHY IV
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Director
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February 20, 2020
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Christopher J. Murphy IV
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/s/ TIMOTHY K. OZARK
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Director
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February 20, 2020
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Timothy K. Ozark
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/s/ JOHN T. PHAIR
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Director
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February 20, 2020
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John T. Phair
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/s/ MARK D. SCHWABERO
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Director
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February 20, 2020
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Mark D. Schwabero
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/s/ BKD, LLP
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1.
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I have reviewed this annual report on Form 10-K of 1st Source Corporation;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors:
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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By
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/s/ CHRISTOPHER J. MURPHY III
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Christopher J. Murphy III, Chief Executive Officer
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1.
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I have reviewed this annual report on Form 10-K of 1st Source Corporation;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors:
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a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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By
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/s/ ANDREA G. SHORT
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Andrea G. Short, Chief Financial Officer
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(1)
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The Report fully complies with the requirements of sections 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of 1st Source.
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By
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/s/ CHRISTOPHER J. MURPHY III
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Christopher J. Murphy III, Chief Executive Officer
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(1)
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The Report fully complies with the requirements of sections 13(a) or 15(d) of the Securities and Exchange Act of 1934; and
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(2)
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The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of 1st Source.
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By
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/s/ ANDREA G. SHORT
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Andrea G. Short, Chief Financial Officer
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