1st Source Profile
1st Source Corporation operates as a bank holding company for 1st Source Bank that provides a broad array of financial products and services.
The company offers commercial and consumer banking services, trust and wealth advisory services, and insurance to individual and business clients through most of its banking center locations in 18 counties in Indiana and Michigan and Sarasota County in Florida. The bank’s Specialty Finance Group, with locations nationwide, offers specialized financing services for construction equipment, new and pre-owned private and cargo aircraft, and various vehicle types (cars, trucks, vans) for fleet purposes. While its Specialty Finance lending portfolio is concentrated in certain equipment types, the company serves a diverse client base.
Business Services
The company provides commercial, small business, agricultural, and real estate loans primarily to privately owned businesses to finance industrial and commercial properties, equipment, inventories and accounts receivable, acquisitions and for general corporate purposes. Other business services include commercial leasing, treasury management services, payment services, including digital and real time/immediate payments, Fedwires, ACH and merchant services and retirement planning services.
Renewable Energy Financing
The company provides financing for commercial solar projects across the contiguous United States, with a focus in the Northeast and Midwest. The company provides construction and permanent loans, and tax equity investments for community solar, commercial and industrial, small utility scale, university, and municipal projects. Project sizes generally range from five megawatts to 20 megawatts.
Consumer Services
The company provides a full range of consumer banking products and services through its banking centers, client service center, and on-line. Traditional banking services include checking and savings accounts, certificates of deposits, Health Savings Accounts and Individual Retirement Accounts, as well as loans, credit cards, mortgages and home equity lines of credit. The company also offers a full line of on-line and mobile banking products. The company’s Automated Teller Machine network supports the company’s debit and credit card program. Consumers also have the ability to obtain consumer loans, credit cards, real estate mortgage loans and home equity lines of credit in any of the company’s banking centers or on-line. The company also offers insurance products through 1st Source Insurance offices or in the company’s banking centers. The company also offers a variety of financial planning (through network of financial advisors), financial literacy, and other consultative services.
Trust and Wealth Advisory Services
The company provides a wide range of trust, investment, agency, and custodial services for individual, estate and trust, corporate, and not-for-profit clients, as well as employee benefit plans and charitable foundations.
Specialty Finance Group Services
The company’s Specialty Finance Group provides comprehensive commercial equipment loan and lease products in four areas: construction equipment; new and pre-owned aircraft; auto and light trucks; and medium and heavy duty trucks.
Construction equipment financing includes financing of new and pre-owned equipment (i.e., bulldozers, excavators, cranes, loaders, and asphalt and concrete plants etc.). Construction equipment finance receivables generally range from $100,000 to $33 million with fixed or variable interest rates and terms of one to ten years.
Aircraft financing consists of financings for new and pre-owned general aviation aircraft (including helicopters) for private and corporate users, aircraft distributors and dealers, charter operators, cargo carriers, and other aircraft operators. The company provides selective international aircraft financing, primarily in Mexico and Brazil. Aircraft finance receivables generally range from $500,000 to $25 million with fixed or variable interest rates and terms of one to ten years.
The company offers auto and light truck fleet financing for new and pre-owned vehicles to automobile and light truck rental companies, commercial leasing companies, and single unit fleet financing for users of specialty vehicles (step vans, vocational work trucks, motor coaches, shuttle buses and funeral cars). The auto and light truck finance receivables generally range from $100,000 to $45 million with fixed or variable interest rates and terms of one to eight years.
The medium and heavy duty truck division provides new and pre-owned fleet financing for highway tractors, medium duty trucks and trailers to the trucking industry. Medium and heavy duty truck finance receivables generally range from $50,000 to $20 million with fixed or variable interest rates and terms of three to eight years.
The Specialty Finance Group operates through the bank and its subsidiaries including 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.
1st Source Insurance, Inc. is the company’s insurance agency subsidiary placing property and casualty, individual and group health, and life insurance for individuals and businesses.
Other Consolidated Subsidiaries
1st Portfolio Management, Inc. owns and manages certain available-for-sale investment securities.
The bank is the managing general partner in nine subsidiaries that have interests in tax-advantaged investments with third parties.
1ST Source Master Trust
1st Source Master Trust is an unconsolidated subsidiary created to issue $57.00 million of trust preferred securities and lending the proceeds to 1st Source. The company guarantees, on a limited basis, payments of distributions on the trust preferred securities and payments on redemption of the trust preferred securities.
Investment Securities
As of December 31, 2023, the company’s investment portfolio included U.S. Treasury and Federal agencies securities; U.S. States and political subdivisions securities; mortgage-backed securities - Federal agencies; corporate debt securities; and foreign government and other securities.
Deposits
As of December 31, 2023, the company’s deposits included noninterest bearing demand; interest bearing demand; savings; and time.
Regulation and Supervision
The company is a registered bank holding company under the Bank Holding Company Act of 1956, as amended (BHCA), and, as such, the company is subject to regulation, supervision, and examination by the Board of Governors of the Federal Reserve System (Federal Reserve).
The bank, as an Indiana state bank and member of the Federal Reserve System, is subject to prudential supervision by the Indiana Department of Financial Institutions (DFI) and the Federal Reserve Bank of Chicago (FRB Chicago). The bank is regularly examined by and subject to regulations promulgated by the DFI and the Federal Reserve. Because the Federal Deposit Insurance Corporation (FDIC) provides deposit insurance to the bank, the company is also subject to supervision and regulation by the FDIC (even though the FDIC is not the company’s primary Federal regulator). The bank is also subject to regulations promulgated by the Consumer Financial Protection Bureau (CFPB) and to supervision for compliance with such regulations by the DFI and the FRB Chicago.
The company is also subject to regulations promulgated by the Securities and Exchange Commission (SEC) and certain state securities commissions for matters relating to the offering and sale of its securities. The company is subject to the disclosure and regulatory requirements of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended, and the Securities Exchange Act of 1934, as amended. The company is listed on the NASDAQ Global Select Market under the trading symbol SRCE, and it is subject to the rules of NASDAQ for listed companies.
The company is also subject to various state laws, including the recently enacted California Consumer Privacy Act, that generally require the company (directly or indirectly through its vendors) to protect the personal information of individual customers and notify them if confidentiality of their personal information is or may have been compromised as the result of a data security breach or failure.
The bank is subject to restrictions imposed by the Federal Reserve Act on extensions of credit to the company or its subsidiaries, and on investments in its securities and the use of its securities as collateral for loans to any borrowers. T
The bank is also subject to numerous restrictions imposed by the Federal Reserve Act on extensions of credit to insiders of the company and/or the bank – executive officers, directors, principal shareholders, or any related interest of such persons.
The Sarbanes-Oxley Act of 2002 generally applies to all companies, including the company, that file or are required to file periodic reports with the SEC under the Exchange Act.
The bank is subject to numerous federal and state consumer financial protection laws and regulations that extensively govern its transactions with consumers. These laws include, but are not limited to, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Truth in Lending Act, the Truth in Savings Act, the Electronic Funds Transfer Act, the Expedited Funds Availability Act, the Home Mortgage Disclosure Act, the Fair Housing Act, the Real Estate Settlement Procedures Act, the Fair Debt Collection Practices Act, and the Service Members Civil Relief Act.
History
1st Source Corporation was founded in 1863. The company was incorporated in 1962.
