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We are not dependent upon any single industry or client.
−Removed: At December 31, 2023, we had consolidated total assets of $8.73 billion, total loans and leases of $6.52 billion, total deposits of $7.04 billion, and total shareholders’ equity of $989.57 million.
+Added: At December 31, 2024, we had consolidated total assets of $8.93 billion, total loans and leases of $6.85 billion, total deposits of $7.23 billion, and total shareholders’ equity of $1.11 billion.
Our principal executive office is located at 100 North Michigan Street, South Bend, Indiana 46601 and our telephone number is (574) 235-2000.
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Trust and Wealth Advisory Services — 1st Source Bank 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.
−Removed: Specialty Finance Group Services — Our Specialty Finance Group provides comprehensive commercial equipment loan and lease products in four areas:
+Added: Specialty Finance Group Services — Our Specialty Finance Group provides comprehensive commercial new and pre-owned equipment loan and lease products in four areas:
construction equipment;
−Removed: new and pre-owned aircraft;
auto and light trucks;
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Construction equipment financing includes financing of new and pre-owned equipment (i.e., bulldozers, excavators, cranes, loaders, and asphalt and concrete plants etc.).
−Removed: 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.
−Removed: 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.
−Removed: 1st Source Bank provides selective international aircraft financing, primarily in Mexico and Brazil.
−Removed: Aircraft finance receivables generally range from $500,000 to $25 million with fixed or variable interest rates and terms of one to ten years.
−Removed: We offer 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).
−Removed: 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.
+Added: Construction equipment finance relationships which may include multiple pieces of equipment generally range from $100,000 to $35 million with fixed or variable interest rates and terms of one to ten years.
+Added: Aircraft financing consists of financings for new and pre-owned general aviation aircraft (including helicopters) for private and corporate users, select aircraft distributors and dealers, charter operators, cargo carriers, and other aircraft operators.
+Added: 1st Source Bank also provides selective international aircraft financing, primarily in Mexico and Brazil.
+Added: Aircraft finance relationships generally range from $500,000 to $30 million with fixed or variable interest rates and terms of one to ten years.
+Added: We offer auto and light truck fleet financing for new and pre-owned vehicles to automobile and light truck rental companies, commercial leasing companies, and a limited number of single unit financing for users of specialty vehicles (step vans, vocational work trucks, motor coaches, shuttle buses and funeral cars).
+Added: The auto and light truck finance relationships generally range from $100,000 to $40 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.
−Removed: 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.
+Added: Medium and heavy duty truck finance relationships generally range from $50,000 to $25 million with fixed or variable interest rates and terms of three to eight years.
The Specialty Finance Group operates through 1st Source Bank and its subsidiaries including:
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owns and manages certain available-for-sale investment securities.
−Removed: 1st Source Bank is the managing general partner in nine subsidiaries that have interests in tax-advantaged investments with third parties.
+Added: 1st Source Bank is the managing general partner in eight subsidiaries that have interests in tax-advantaged investments with third parties.
We have other subsidiaries that are not significant to the consolidated entity.
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Our culture is what unifies our colleagues across our diverse business model, ensures we are best positioned to serve our diverse clients and propels our continuous evolution.
−Removed: • For the second consecutive year, all new employees completed a series of facilitated training sessions on unconscious bias within six months of hire.
+Added: • For the third consecutive year, all new employees completed a series of facilitated training sessions on unconscious bias within six months of hire.
• Diversity in leadership starts with our Board of Directors and we are proud to report that five of our twelve Board Members (42%) are women or minority.
−Removed: • For the seventh consecutive year, more than 21% of our new hires were diverse colleagues.
−Removed: • In 2023, the Company was recognized by Newsweek as a Greatest Workplace for Parents and Families and by Forbes as a Best Midsize Employer and Best-In-State Bank.
+Added: • For the eighth consecutive year, more than 21% of our new hires were diverse colleagues.
+Added: • In 2024, the Company was recognized as Forbes America’s Best Banks and for the third consecutive year as Forbes Best-In-State Bank.
Training and Talent Development — We believe a critical driver of our future growth is the ability to grow leaders.
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The program is built around a series of best-in-class leadership principles.
+Added: • The 1st Source Engaging Manager program is a development program designed to help managers achieve their purpose to develop and lead engaging teams.
+Added: It focuses on strategies for maximizing the talents of each individual, strengthening team effectiveness, and building high performing teams that deliver on the 1st Source mission to help our clients achieve security, build wealth, and realize their dreams.
• The Commercial Banker Development Program is a rotational program for recent college graduates designed to expose participants to fundamentals of commercial banking.
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• To encourage our colleagues to build careers delivering the highest levels of outstanding client service at 1st Source Bank, we developed mastery career paths for critical roles including personal and commercial banking, management and pre-management, and customer service.
−Removed: In 2023, 56 career paths were tracked in our new Learning Management System.
−Removed: 897 career paths were accessed by our colleagues, 411 were completed, and more than 6,700 skills were developed.
+Added: In 2024, 66 career paths were tracked in our Learning Management System.
+Added: Our colleagues, completed 468 career paths, made progress on 310 paths, and more than 5,100 skills were developed.
+Added: • Our personal finance course is just one of the ways that we helped our colleagues learn the 1st Source philosophy on topics including:
+Added: Savings and Emergency Fund, Budgeting, Credit and Debt, Renting and Home Ownership, Investing and Retirement, and Protecting your Assets and Charitable Giving.
+Added: Our colleagues use the same learning resources provided to our clients on 1stsource.com, to better prepare them to discuss these important financial topics.
• The Business of Banking series, facilitated internally, helps colleagues learn more about the banking industry as well as different areas of 1st Source Bank.
+Added: More than 40 leaders across the bank spend time discussing their departments, and how they contribute to our mission to help our clients achieve security, build wealth, and realize their dreams.
Community Engagement — Our organization is only as strong as the communities we serve.
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Because the Federal Deposit Insurance Corporation (FDIC) provides deposit insurance to the Bank, we are also subject to supervision and regulation by the FDIC (even though the FDIC is not our primary Federal regulator).
−Removed: 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.
+Added: The Bank is also subject to regulations promulgated by the Consumer Financial Protection Bureau (CFPB), but the DFI and the FRB Chicago, rather than the CFPB, currently examine the Bank for compliance with such regulations, and will continue to do so until the Bank's regulatory assets exceed $10 billion for four consecutive quarter-ends.
+Added: We expect the Trump administration will seek to implement a regulatory reform agenda that is significantly different from that of the Biden administration, impacting the rulemaking, supervision, examination and enforcement priorities of the federal banking agencies.
Bank Holding Company Act — Under the BHCA our activities are limited to (i) business so closely related to banking, managing, or controlling banks as to be a proper incident thereto and (ii) non-bank activities, determined by law or regulation, to be closely related to the business of banking or of managing or controlling banks.
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At December 31, 2024, the Bank was categorized as “well capitalized,” meaning that our total risk-based capital ratio exceeded 10.00%, our Tier 1 risk-based capital ratio exceeded 8.00%, our common equity Tier 1 risk-based capital ratio exceeded 6.50%, our leverage ratio exceeded 5.00%, and we are not subject to a regulatory order, agreement, or directive to meet and maintain a specific capital level for any capital measure.
−Removed: 1st Source and the Bank have elected not to utilize the community bank leverage ratio framework adopted by the Federal Reserve and the other federal banking agencies in 2020.
+Added: 1st Source and the Bank have elected not to utilize the optional community bank leverage ratio framework implemented by the Federal Reserve and the other federal banking agencies.
Regulatory capital requirements to which we are subject are disclosed in Part II, Item 8, Financial Statements and Supplementary Data — Note 20 of the Notes to Consolidated Financial Statements.
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Federal banking regulators will consider our performance in these areas as they review any applications we may file to engage in mergers or acquisitions or to open a branch or facility.
−Removed: On October 24, 2023, federal banking agencies issued a final rule designed to strengthen and modernize the regulations implementing the CRA.
+Added: The federal banking agencies issued a final rule in 2023 designed to strengthen and modernize the regulations implementing the CRA.
The changes are designed to encourage banks to expand access to credit, investment and banking services in low- and moderate-income communities, adapt to industry changes including mobile and internet banking, provide greater clarity and consistency in the application of CRA regulations and tailor CRA evaluations and data collection to bank size and type.
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Future monetary policies and the effect of such policies on our future business and earnings, and the effect on the future business and earnings of the Bank cannot be predicted.
−Removed: In March 2023, the Federal Reserve created a Bank Term Funding Program (BTFP) to provide funding to eligible depository institutions in addition to the funding provided through its “discount window.” The BTFP offers loans up to one year in length that can be prepaid without penalty.
−Removed: The amount that can be borrowed under the BTFP is based upon the par value of the securities pledged as collateral to the Federal Reserve.
−Removed: Advances can be requested under the BTFP until March 11, 2024.
+Added: In March 2023, the Federal Reserve created a Bank Term Funding Program (BTFP) to provide funding to eligible depository institutions in addition to the funding provided through its “discount window.” The Federal Reserve ceased extending advances under the BTFP on March 11, 2024.
+Added: Under the BTFP, the Federal Reserve offered loans up to one year in length and may be prepaid without penalty.
+Added: The amount that could be borrowed under the BTFP was based upon the par value of the securities pledged as collateral to the Federal Reserve.
At December 31, 2024, the Bank had $100 million of BTFP borrowings.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.