Profile: 1st Source Corp (SRCE.OQ)
8 Dec 2017
1st Source Corporation, incorporated on January 19, 1962, is a bank holding company. The Company, through its subsidiaries, provides a range of financial products and services. The Company is engaged in commercial banking. 1st Source Bank (Bank), its banking subsidiary, offers commercial and consumer banking services, trust and wealth advisory services, and insurance to individual and business clients. The Bank offers a range of consumer and commercial banking services through its lending operations, retail branches and fee based businesses.
The Bank provides commercial, small business, agricultural, and real estate loans to primarily business clients mainly located within its regional market area. Loans are made for a range of general corporate purposes, including financing for industrial and commercial properties, financing for equipment, inventories and accounts receivable, renewable energy financing, and acquisition financing. Other services include commercial leasing, treasury management services and retirement planning services.
The Bank provides a range of consumer banking products and services through its banking centers and at 1stsource.com. It also offers insurance products through 1st Source Insurance offices. The banking services include checking and savings accounts, certificates of deposits and individual retirement accounts. It offers a range of online and mobile banking products, which includes bill payment. It offers a range of financial planning, financial literacy and other consultative services to its customers.
The Bank provides a range of trust, investment, agency and custodial services for individual, corporate and not-for-profit clients. These services include the administration of estates and personal trusts, as well as the management of investment accounts for individuals, employee benefit plans and charitable foundations. The Bank, through its Specialty Finance Group, provides a range of equipment loan and lease finance products addressing the financing needs of a range of companies. This group can be broken down into four areas: new and used aircraft; auto and light trucks; construction equipment, and medium and heavy duty trucks. Aircraft financing consists of financings for new and used general aviation aircraft, including helicopters for private and corporate aircraft users, aircraft distributors and dealers, air charter operators, air cargo carriers and other aircraft operators. It provides international aircraft financing, primarily in Mexico and Brazil. The auto and light truck division, including specialty vehicles, such as buses, step vans, motor coaches and funeral cars, consists of fleet financings to automobile rental and leasing companies, light truck rental and leasing companies, and single unit through fleet financing for users of special purpose vehicles. Construction equipment financing includes financing of equipment, including asphalt and concrete plants, bulldozers, excavators, cranes, loaders, and trash and recycling equipment, to the construction industry. The medium and heavy duty truck division provides fleet financing for highway tractors and trailers, and delivery trucks to the commercial trucking industry.
The Specialty Finance Group also consists of separate subsidiaries of the Bank, which include Michigan Transportation Finance Corporation, 1st Source Specialty Finance, Inc., SFG Aircraft, Inc., 1st Source Intermediate Holding, LLC, SFG Commercial Aircraft Leasing, Inc. and SFG Equipment Leasing Corporation I. 1st Source Insurance, Inc. is a subsidiary of the Bank that provides insurance products and services to individuals and businesses covering corporate and personal property, casualty insurance, and individual and group health and life insurance. 1st Source Corporation Investment Advisors, Inc. (Investment Advisors) is a subsidiary of the Bank that provides investment advisory services for trust and investment clients of the Bank and to Wasatch Advisors, Inc., the investment advisor of the Wasatch Mutual Fund family.
The Company offers a range of loans, such as commercial and agricultural lending, auto and light truck loans, medium and heavy duty truck loans, residential real estate and home equity loans, construction equipment loans and consumer loans. It sells residential mortgage loans to Federal National Mortgage Association (Fannie Mae or FNMA), as well as Federal Housing Administration (FHA)-insured and Veterans Affairs (VA)-guaranteed loans in Government National Mortgage Association (Ginnie Mae or GNMA) mortgage-backed securities. As of December 31, 2016, the Company's total loans or leases were $4.19 billion.
The Company's investing activities include securities available for sale and securities held-to-maturity. Its investment securities available-for-sale include the United States treasury and federal agencies securities, the United States' States and political subdivisions securities, mortgage-backed securities - federal agencies, corporate debt securities, foreign government and other securities, and marketable equity securities. As of December 31, 2016, the residential mortgage-backed securities held by the Company consisted of GNMA, FNMA and Federal Home Loan Mortgage Corporation (FHLMC) pass-through certificates. As of December 31, 2016, the total investment securities available-for-sale were $0.84 billion.
Sources of funds
The Company's sources of funds include deposits and short-term borrowings. Its deposits include noninterest bearing demand deposits, interest bearing demand deposits, savings deposits and time deposits. Its short-term borrowings include federal funds purchased and securities repurchase agreements, commercial paper and other short-term borrowings. As of December 31, 2016, the total deposits of the Company were $4.33 billion.
1st Source Corp
100 N Michigan St
SOUTH BEND IN 46601-1630