1st Source Corporation Reports Record First Quarter Results, Cash Dividend Declared
1st Source (NASDAQ: SRCE) reported record first quarter 2025 results with net income of $37.52 million, up 19.35% from previous quarter and 27.38% year-over-year. Diluted earnings per share reached $1.52, a 27.73% increase from Q1 2024.
Key performance metrics showed strong growth with return on average assets at 1.72% and return on equity at 13.33%. The Board approved a quarterly cash dividend of $0.38 per share, up 11.76% year-over-year. Average loans grew by $122.53 million (1.84%) quarter-over-quarter, while deposits increased by $187.39 million (2.62%).
The bank's tax-equivalent net interest margin improved to 3.90%, up 12 basis points from the previous quarter. The allowance for loan and lease losses stood at 2.29% of total loans, with minimal net charge-offs of $0.18 million for the quarter.
1st Source (NASDAQ: SRCE) ha riportato risultati record nel primo trimestre 2025 con un utile netto di 37,52 milioni di dollari, in aumento del 19,35% rispetto al trimestre precedente e del 27,38% su base annua. L'utile diluito per azione ha raggiunto 1,52 dollari, con un incremento del 27,73% rispetto al primo trimestre 2024.
I principali indicatori di performance hanno mostrato una forte crescita, con un ritorno sugli attivi medi dell'1,72% e un ritorno sul capitale proprio del 13,33%. Il Consiglio di Amministrazione ha approvato un dividendo trimestrale in contanti di 0,38 dollari per azione, in aumento dell'11,76% su base annua. I prestiti medi sono cresciuti di 122,53 milioni di dollari (1,84%) trimestre su trimestre, mentre i depositi sono aumentati di 187,39 milioni di dollari (2,62%).
Il margine di interesse netto al netto delle imposte della banca è migliorato al 3,90%, con un incremento di 12 punti base rispetto al trimestre precedente. L'accantonamento per perdite su prestiti e leasing si è attestato al 2,29% del totale dei prestiti, con perdite nette minime di 0,18 milioni di dollari nel trimestre.
1st Source (NASDAQ: SRCE) reportó resultados récord en el primer trimestre de 2025 con un ingreso neto de 37,52 millones de dólares, un aumento del 19,35% respecto al trimestre anterior y del 27,38% interanual. Las ganancias diluidas por acción alcanzaron 1,52 dólares, un incremento del 27,73% respecto al primer trimestre de 2024.
Las métricas clave de desempeño mostraron un fuerte crecimiento con un retorno sobre activos promedio del 1,72% y un retorno sobre el capital del 13,33%. La Junta aprobó un dividendo trimestral en efectivo de 0,38 dólares por acción, un aumento del 11,76% interanual. Los préstamos promedio crecieron 122,53 millones de dólares (1,84%) trimestre a trimestre, mientras que los depósitos aumentaron 187,39 millones de dólares (2,62%).
El margen neto de interés equivalente a impuestos del banco mejoró a 3,90%, aumentando 12 puntos básicos respecto al trimestre anterior. La provisión para pérdidas en préstamos y arrendamientos se situó en 2,29% del total de préstamos, con cargos netos mínimos de 0,18 millones de dólares en el trimestre.
1st Source (NASDAQ: SRCE)는 2025년 1분기에 순이익 3,752만 달러를 기록하며 분기 대비 19.35%, 전년 동기 대비 27.38% 증가한 사상 최고 실적을 발표했습니다. 희석 주당순이익은 1.52달러로 2024년 1분기 대비 27.73% 상승했습니다.
주요 성과 지표는 강한 성장을 나타내며 평균자산수익률은 1.72%, 자기자본이익률은 13.33%를 기록했습니다. 이사회는 주당 0.38달러의 분기별 현금 배당을 승인했으며, 이는 전년 동기 대비 11.76% 증가한 수치입니다. 평균 대출금은 분기 대비 1억 2,253만 달러(1.84%) 증가했고, 예금은 1억 8,739만 달러(2.62%) 늘었습니다.
은행의 세금 환산 순이자마진은 3.90%로 전 분기 대비 12bp 상승했습니다. 대출 및 리스 손실 충당금은 총 대출의 2.29%였으며, 분기 순대손충당금은 18만 달러로 최소 수준이었습니다.
1st Source (NASDAQ : SRCE) a annoncé des résultats records pour le premier trimestre 2025 avec un bénéfice net de 37,52 millions de dollars, en hausse de 19,35 % par rapport au trimestre précédent et de 27,38 % en glissement annuel. Le bénéfice dilué par action a atteint 1,52 dollar, soit une augmentation de 27,73 % par rapport au premier trimestre 2024.
Les principaux indicateurs de performance ont montré une forte croissance avec un rendement moyen des actifs de 1,72 % et un rendement des capitaux propres de 13,33 %. Le conseil d'administration a approuvé un dividende trimestriel en espèces de 0,38 dollar par action, en hausse de 11,76 % en glissement annuel. Les prêts moyens ont augmenté de 122,53 millions de dollars (1,84 %) d’un trimestre à l’autre, tandis que les dépôts ont progressé de 187,39 millions de dollars (2,62 %).
La marge nette d’intérêt après impôts de la banque s’est améliorée à 3,90 %, en hausse de 12 points de base par rapport au trimestre précédent. La provision pour pertes sur prêts et crédits-bails s’est établie à 2,29 % du total des prêts, avec des pertes nettes minimales de 0,18 million de dollars pour le trimestre.
1st Source (NASDAQ: SRCE) meldete Rekordergebnisse für das erste Quartal 2025 mit einem Nettogewinn von 37,52 Millionen US-Dollar, was einem Anstieg von 19,35 % gegenüber dem Vorquartal und 27,38 % im Jahresvergleich entspricht. Das verwässerte Ergebnis je Aktie erreichte 1,52 US-Dollar, eine Steigerung von 27,73 % gegenüber dem ersten Quartal 2024.
Wichtige Leistungskennzahlen zeigten starkes Wachstum mit einer Rendite auf das durchschnittliche Vermögen von 1,72 % und einer Eigenkapitalrendite von 13,33 %. Der Vorstand genehmigte eine vierteljährliche Bardividende von 0,38 US-Dollar pro Aktie, was einem Anstieg von 11,76 % im Jahresvergleich entspricht. Die durchschnittlichen Kredite stiegen quartalsweise um 122,53 Millionen US-Dollar (1,84 %), während die Einlagen um 187,39 Millionen US-Dollar (2,62 %) zunahmen.
Die steueräquivalente Nettozinsmarge der Bank verbesserte sich auf 3,90 %, ein Anstieg um 12 Basispunkte gegenüber dem Vorquartal. Die Rückstellung für Kreditausfälle lag bei 2,29 % der Gesamtkredite, mit minimalen Nettoabschreibungen von 0,18 Millionen US-Dollar im Quartal.
- Record quarterly net income of $37.52 million, up 27.38% year-over-year
- Strong margin expansion to 3.90%, marking fifth consecutive quarter of improvement
- Quarterly dividend increased by 11.76% to $0.38 per share
- Robust loan growth of 7.36% annualized in Q1
- Solid deposit growth of 10.48% annualized in Q1
- Improved capital ratios with Common Equity Tier 1 at 14.71%
- Increased nonperforming assets ratio to 0.63% from 0.46% in previous quarter
- Declining equipment rental income due to lower operating lease demand
- Decreased mortgage banking income from lower sales volumes
- Higher operating expenses with 8.98% increase year-over-year
Insights
1st Source delivered exceptional Q1 results with record net income up 27.38% YoY, expanding margins, and substantial dividend growth amid challenging conditions.
The standout performance metrics for 1st Source this quarter warrant close attention. Net income reached a record $37.52 million, jumping
Profitability metrics show exceptional efficiency. Return on average assets expanded to
Balance sheet growth remains robust with average loans increasing at a
While nonperforming assets ticked up to
The capital position is exceptionally strong with a Common Equity Tier 1 ratio of
The multiple industry recognitions – ranking 26th on Forbes' America's Best Banks list, making Forbes' Best Midsize Employers list for the fourth year, and placing 25th among S&P's Top 50 Community Banks – validate that this performance isn't an anomaly but reflects disciplined execution and strategic positioning.
QUARTERLY HIGHLIGHTS
- Net income was a record
$37.52 million for the quarter, up$6.08 million or19.35% from the previous quarter and up$8.07 million or27.38% from the first quarter of 2024. Diluted net income per common share was$1.52 , up$0.25 or19.69% from the previous quarter and up$0.33 or27.73% from the prior year's first quarter of$1.19 . - Return on average assets increased to
1.72% from1.42% in the previous quarter and1.37% in the first quarter of 2024. Return on average common shareholders' equity increased to13.33% from11.21% , in the previous quarter and11.77% in the first quarter of 2024. - Cash dividend of
$0.38 per common share for the quarter was approved, up11.76% from the cash dividend declared a year ago. - Average loans and leases grew
$122.53 million in the first quarter, up1.84% (7.36% annualized growth) from the previous quarter and increased$294.88 million , up4.53% from the first quarter of 2024. - Average deposits increased
$187.39 million in the first quarter, up2.62% (10.48% annualized growth) from the previous quarter and grew$322.44 million , up4.60% from the first quarter of 2024. - Tax-equivalent net interest income was
$81.09 million , up$1.57 million or1.97% from the fourth quarter of 2024 and up$9.02 million , or12.52% from the first quarter a year ago. Tax-equivalent net interest margin was3.90% , up 12 basis points from the previous quarter and up 36 basis points from the first quarter a year ago. - During the first quarter, we received a one-time
$0.74 million after-tax interest payment on federal tax refunds from tax credit carrybacks. This was recognized through income tax expense and lowered the effective tax rate to21.34% from21.53% during the previous quarter and22.24% from the first quarter a year ago.
South Bend, Indiana--(Newsfile Corp. - April 24, 2025) - 1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported record quarterly net income of
At its April 2025 meeting, the Board of Directors approved a cash dividend of
Christopher J. Murphy III, Chairman and Chief Executive Officer, commented, "In spite of the noise in the economy and the uncertainty in the market, we are pleased to have achieved record quarterly net income during the quarter and net interest margin expansion compared to the previous quarter. Higher rates on investment securities, increased average loan and lease balances, and less reliance on higher costing short-term borrowings lead to a 12-basis point improvement of our margin from the prior quarter. This marks the fifth consecutive quarter of margin expansion despite persistent deposit rate competition. Most importantly, our balance sheet remained strong during the quarter and is well positioned to handle economic uncertainty, which seems to be increasing every day, adversely impacting our customers and their businesses. Our liquidity position is solid and our historically conservative capital position was maintained.
"During the first quarter of 2025 we were very happy to learn that 1st Source Bank won several local and national accolades. For the second consecutive year, we were included in Forbes' America's Best Banks list and came in at #26 out of the top 100 named. This award is driven by 10 metrics addressing growth, credit quality and profitability - a set of proof points that we are continuing to maintain a strong and stable balance sheet, sustainable earnings, and are staying true to our mission of helping our clients achieve security, build wealth, and realize their dreams.
"Additionally, for the fourth consecutive year, we were named to Forbes' America's Best Midsize Employers list. We are especially proud of this award because the list identifies companies that are rated most highly by their employees. They ranked the employers on everything from salary, work environment, training programs, and opportunities to advance. It is confirmation that our leadership team is upholding our culture built on core values of integrity, teamwork, superior quality, outstanding client service, and community leadership.
"In March, we were also pleased to learn that we were designated by S&P Global Market Intelligence's unit as among the Top 50 Community Banks with
"At the state and local levels, we were recognized for our small business lending across the state of Indiana for the 12th consecutive year by the U.S. Small Business Administration (SBA). 1st Source once again received the Community Bank Gold Level Award for delivering the greatest number of SBA loans in Indiana in 2024. We were also proud to learn that we won five awards in Northwest Indiana Business Magazine's Best of Business awards in the Banking and Finance category. The awards won included Best Bank for Business, Best Bank for Customer Service, Best Business Investment Firm, Best Institution for Obtaining a Business Loan, and Best Wealth Management Advisory Firm - all in Michiana.
"And finally, in the first quarter, our Kouts and Portage Avenue Banking Centers underwent renovations and were converted to our side-by-side banking model. Our Winamac Banking Center was moved to a new location and now also showcases the side-by-side model. This experience invites clients behind the teller line, allowing for the Bank's clients and bankers to have a more transparent and inclusive relationship. We are also excited to have opened a new banking center in Carmel, Indiana in early April. This new location complements our existing loan production office in the Greater Indianapolis market, and we are eager to be able to serve both personal and business clients in that area with our full suite of services," Mr. Murphy concluded.
FIRST QUARTER 2025 FINANCIAL RESULTS
Loans and Leases
First quarter average loans and leases were
Deposits
First quarter average deposits were
Net Interest Income and Net Interest Margin
First quarter 2025 tax-equivalent net interest income increased
First quarter 2025 net interest margin was
Noninterest Income
First quarter 2025 noninterest income of
The increase in noninterest income compared to the previous quarter was mainly due to available-for-sale securities losses of
The increase in noninterest income compared to the first quarter of 2024 was primarily due to increased partnership investment gains on sale of renewable energy tax equity investments, increased interest rate swap fees, higher brokerage and commission fees, increased insurance contingent commissions and higher trust and wealth and advisory income due to improvements in overall market performance. These increases were offset by reduced equipment rental income as demand for operating leases declined and decreases in mortgage banking income from lower sales volumes and servicing fees.
Noninterest Expense
First quarter 2025 noninterest expense of
The increase in noninterest expense compared to the first quarter of 2024, was the result of higher salaries and wages from normal merit increases, increased incentive compensation and higher group insurance claims. Additionally, we saw increased data processing costs, higher professional fees as a result of increased audit and legal fees, fewer gains on the sale of fixed assets and off-lease equipment, and increased occupancy expense. These increases were offset by lower leased equipment depreciation and decreased blanket insurance premiums.
Credit
The allowance for loan and lease losses increased to
The provision for credit losses was
Capital
As of March 31, 2025, the common equity-to-assets ratio was
Capital accretion over the last twelve months has been driven primarily by growth in retained earnings and a reduction in unrealized losses in our short-duration investment securities available-for-sale portfolio.
During the first quarter of 2025, 7,554 shares were repurchased for treasury reducing common shareholders' equity by
ABOUT 1ST SOURCE CORPORATION
1st Source common stock is traded on the NASDAQ Global Select Market under "SRCE" and appears in the National Market System tables in many daily newspapers under the code name "1st Src." Since 1863, 1st Source has been committed to the success of its clients, individuals, businesses and the communities it serves. For more information, visit www.1stsource.com.
1st Source serves the northern half of Indiana and southwest Michigan and is the largest locally controlled financial institution headquartered in the area. While delivering a comprehensive range of consumer and commercial banking services through its community bank offices, 1st Source has distinguished itself with highly personalized services. 1st Source Bank also competes for business nationally by offering specialized financing services for new and used private and cargo aircraft, automobiles for leasing and rental agencies, medium and heavy-duty trucks, and construction equipment. The Corporation includes 78 banking centers, 18 1st Source Bank Specialty Finance Group locations nationwide, nine Wealth Advisory Services locations, 10 1st Source Insurance offices, and three loan production offices.
FORWARD-LOOKING STATEMENTS
Except for historical information contained herein, the matters discussed in this document express "forward-looking statements." Generally, the words "believe," "contemplate," "seek," "plan," "possible," "assume," "hope," "expect," "intend," "targeted," "continue," "remain," "estimate," "anticipate," "project," "will," "should," "indicate," "would," "may" and similar expressions indicate forward-looking statements. Those statements, including statements, projections, estimates or assumptions concerning future events or performance, and other statements that are other than statements of historical fact, are subject to material risks and uncertainties. 1st Source cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made.
1st Source may make other written or oral forward-looking statements from time to time. Readers are advised that various important factors could cause 1st Source's actual results or circumstances for future periods to differ materially from those anticipated or projected in such forward-looking statements. Such factors, among others, include changes in laws, regulations or accounting principles generally accepted in the United States; 1st Source's competitive position within its markets served; increasing consolidation within the banking industry; unforeseen changes in interest rates; unforeseen downturns in the local, regional or national economies or in the industries in which 1st Source has credit concentrations; and other risks discussed in 1st Source's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, which filings are available from the SEC. 1st Source undertakes no obligation to publicly update or revise any forward-looking statements.
NON-GAAP FINANCIAL MEASURES
The accounting and reporting policies of 1st Source conform to generally accepted accounting principles ("GAAP") in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures are used by management to evaluate and measure the Company's performance. Although these non-GAAP financial measures are frequently used by investors to evaluate a financial institution, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. These include taxable-equivalent net interest income (including its individual components), net interest margin (including its individual components), the efficiency ratio, tangible common equity-to-tangible assets ratio and tangible book value per common share. Management believes that these measures provide users of the Company's financial information a more meaningful view of the performance of the interest-earning assets and interest-bearing liabilities and of the Company's operating efficiency. Other financial holding companies may define or calculate these measures differently.
Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent ("FTE") basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE basis is also used in the calculation of the Company's efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses and lease depreciation), measures how much it costs to produce one dollar of revenue. Securities gains or losses and lease depreciation are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity-to-tangible assets ratio and tangible book value per common share as useful measurements of the Company's equity.
See the table marked "Reconciliation of Non-GAAP Financial Measures" for a reconciliation of certain non-GAAP financial measures used by the Company with their most closely related GAAP measures.
Category: Earnings
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(charts attached)
| 1st SOURCE CORPORATION | ||||||||||||||||
| 1st QUARTER 2025 FINANCIAL HIGHLIGHTS | ||||||||||||||||
| (Unaudited - Dollars in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||||
| 2025 | 2024 | 2024 | ||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||
| Assets | $ | 8,856,278 | $ | 8,824,464 | $ | 8,652,144 | ||||||||||
| Earning assets | 8,434,790 | 8,378,064 | 8,182,165 | |||||||||||||
| Investments | 1,519,177 | 1,580,016 | 1,608,094 | |||||||||||||
| Loans and leases | 6,798,952 | 6,676,421 | 6,504,069 | |||||||||||||
| Deposits | 7,333,542 | 7,146,149 | 7,011,105 | |||||||||||||
| Interest bearing liabilities | 5,920,255 | 5,841,096 | 5,783,480 | |||||||||||||
| Common shareholders' equity | 1,141,922 | 1,115,473 | 1,006,286 | |||||||||||||
| Total equity | 1,208,236 | 1,186,337 | 1,084,654 | |||||||||||||
| INCOME STATEMENT DATA | ||||||||||||||||
| Net interest income | $ | 80,938 | $ | 79,366 | $ | 71,915 | ||||||||||
| Net interest income - FTE(1) | 81,085 | 79,516 | 72,063 | |||||||||||||
| Provision for credit losses | 3,265 | 3,580 | 7,477 | |||||||||||||
| Noninterest income | 23,103 | 18,482 | 22,156 | |||||||||||||
| Noninterest expense | 53,076 | 54,208 | 48,704 | |||||||||||||
| Net income | 37,523 | 31,437 | 29,462 | |||||||||||||
| Net income available to common shareholders | 37,520 | 31,438 | 29,455 | |||||||||||||
| PER SHARE DATA | ||||||||||||||||
| Basic net income per common share | $ | 1.52 | $ | 1.27 | $ | 1.19 | ||||||||||
| Diluted net income per common share | 1.52 | 1.27 | 1.19 | |||||||||||||
| Common cash dividends declared | 0.36 | 0.36 | 0.34 | |||||||||||||
| Book value per common share(2) | 47.29 | 45.31 | 41.26 | |||||||||||||
| Tangible book value per common share(1) | 43.87 | 41.89 | 37.83 | |||||||||||||
| Market value - High | 67.77 | 68.13 | 55.25 | |||||||||||||
| Market value - Low | 53.23 | 57.04 | 48.32 | |||||||||||||
| Basic weighted average common shares outstanding | 24,546,819 | 24,515,454 | 24,459,088 | |||||||||||||
| Diluted weighted average common shares outstanding | 24,546,819 | 24,515,454 | 24,459,088 | |||||||||||||
| KEY RATIOS | ||||||||||||||||
| Return on average assets | 1.72 % | 1.42 % | 1.37 % | |||||||||||||
| Return on average common shareholders' equity | 13.33 | 11.21 | 11.77 | |||||||||||||
| Average common shareholders' equity to average assets | 12.89 | 12.64 | 11.63 | |||||||||||||
| End of period tangible common equity to tangible assets(1) | 12.14 | 11.61 | 10.79 | |||||||||||||
| Risk-based capital - Common Equity Tier 1(3) | 14.71 | 14.21 | 13.48 | |||||||||||||
| Risk-based capital - Tier 1(3) | 16.20 | 15.82 | 15.15 | |||||||||||||
| Risk-based capital - Total(3) | 17.46 | 17.08 | 16.41 | |||||||||||||
| Net interest margin | 3.89 | 3.77 | 3.54 | |||||||||||||
| Net interest margin - FTE(1) | 3.90 | 3.78 | 3.54 | |||||||||||||
| Efficiency ratio: expense to revenue | 51.01 | 55.40 | 51.77 | |||||||||||||
| Efficiency ratio: expense to revenue - adjusted(1) | 51.31 | 53.01 | 51.60 | |||||||||||||
| Net charge-offs to average loans and leases | 0.01 | 0.04 | 0.38 | |||||||||||||
| Loan and lease loss allowance to loans and leases | 2.29 | 2.27 | 2.26 | |||||||||||||
| Nonperforming assets to loans and leases | 0.63 | 0.46 | 0.34 | |||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||
| 2025 | 2024 | 2024 | 2024 | 2024 | ||||||||||||
| END OF PERIOD BALANCES | ||||||||||||||||
| Assets | $ | 8,963,114 | $ | 8,931,938 | $ | 8,763,946 | $ | 8,878,003 | $ | 8,667,837 | ||||||
| Loans and leases | 6,863,393 | 6,854,808 | 6,616,100 | 6,652,999 | 6,562,772 | |||||||||||
| Deposits | 7,417,765 | 7,230,035 | 7,125,944 | 7,195,924 | 7,055,311 | |||||||||||
| Allowance for loan and lease losses | 157,470 | 155,540 | 152,324 | 150,067 | 148,024 | |||||||||||
| Goodwill and intangible assets | 83,895 | 83,897 | 83,902 | 83,907 | 83,912 | |||||||||||
| Common shareholders' equity | 1,161,459 | 1,111,068 | 1,104,253 | 1,043,515 | 1,009,886 | |||||||||||
| Total equity | 1,220,542 | 1,181,506 | 1,175,205 | 1,114,855 | 1,081,549 | |||||||||||
| ASSET QUALITY | ||||||||||||||||
| Loans and leases past due 90 days or more | $ | 122 | $ | 106 | $ | 100 | $ | 185 | $ | 26 | ||||||
| Nonaccrual loans and leases | 40,540 | 30,613 | 30,678 | 20,297 | 22,097 | |||||||||||
| Other real estate | — | 460 | — | — | — | |||||||||||
| Repossessions | 2,410 | 155 | 109 | 352 | 308 | |||||||||||
| Total nonperforming assets | $ | 43,072 | $ | 31,334 | $ | 30,887 | $ | 20,834 | $ | 22,431 | ||||||
(1) See "Reconciliation of Non-GAAP Financial Measures" for more information on this performance measure/ratio.
(2) Calculated as common shareholders' equity divided by common shares outstanding at the end of the period.
(3) Calculated under banking regulatory guidelines.
| 1st SOURCE CORPORATION | ||||||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | ||||||||||||||
| (Unaudited - Dollars in thousands) | ||||||||||||||
| March 31, | December 31, | September 30, | March 31, | |||||||||||
| 2025 | 2024 | 2024 | 2024 | |||||||||||
| ASSETS | ||||||||||||||
| Cash and due from banks | $ | 87,816 | $ | 76,837 | $ | 99,900 | $ | 41,533 | ||||||
| Federal funds sold and interest bearing deposits with other banks | 135,003 | 47,989 | 69,461 | 39,381 | ||||||||||
| Investment securities available-for-sale, at fair value (amortized cost of | 1,501,877 | 1,536,299 | 1,563,461 | 1,583,244 | ||||||||||
| Other investments | 23,855 | 23,855 | 23,855 | 25,075 | ||||||||||
| Mortgages held for sale | 2,305 | 2,569 | 3,690 | 2,881 | ||||||||||
| Loans and leases, net of unearned discount: | ||||||||||||||
| Commercial and agricultural | 775,118 | 772,974 | 723,176 | 731,527 | ||||||||||
| Renewable energy | 505,413 | 487,266 | 479,947 | 413,662 | ||||||||||
| Auto and light truck | 955,945 | 948,435 | 949,473 | 997,465 | ||||||||||
| Medium and heavy duty truck | 289,837 | 289,623 | 299,208 | 303,799 | ||||||||||
| Aircraft | 1,118,099 | 1,123,797 | 1,065,801 | 1,104,058 | ||||||||||
| Construction equipment | 1,171,934 | 1,203,912 | 1,141,367 | 1,092,585 | ||||||||||
| Commercial real estate | 1,230,760 | 1,215,265 | 1,156,823 | 1,135,595 | ||||||||||
| Residential real estate and home equity | 689,101 | 680,071 | 664,581 | 643,856 | ||||||||||
| Consumer | 127,186 | 133,465 | 135,724 | 140,225 | ||||||||||
| Total loans and leases | 6,863,393 | 6,854,808 | 6,616,100 | 6,562,772 | ||||||||||
| Allowance for loan and lease losses | (157,470 | ) | (155,540 | ) | (152,324 | ) | (148,024 | ) | ||||||
| Net loans and leases | 6,705,923 | 6,699,268 | 6,463,776 | 6,414,748 | ||||||||||
| Equipment owned under operating leases, net | 9,864 | 11,483 | 13,011 | 16,691 | ||||||||||
| Premises and equipment, net | 54,778 | 53,456 | 48,185 | 45,689 | ||||||||||
| Goodwill and intangible assets | 83,895 | 83,897 | 83,902 | 83,912 | ||||||||||
| Accrued income and other assets | 357,798 | 396,285 | 394,705 | 414,683 | ||||||||||
| Total assets | $ | 8,963,114 | $ | 8,931,938 | $ | 8,763,946 | $ | 8,667,837 | ||||||
| LIABILITIES | ||||||||||||||
| Deposits: | ||||||||||||||
| Noninterest-bearing demand | $ | 1,651,479 | $ | 1,639,101 | $ | 1,635,981 | $ | 1,618,498 | ||||||
| Interest-bearing deposits: | ||||||||||||||
| Interest-bearing demand | 2,451,169 | 2,544,839 | 2,404,805 | 2,364,751 | ||||||||||
| Savings | 1,392,391 | 1,256,370 | 1,242,551 | 1,270,401 | ||||||||||
| Time | 1,922,726 | 1,789,725 | 1,842,607 | 1,801,661 | ||||||||||
| Total interest-bearing deposits | 5,766,286 | 5,590,934 | 5,489,963 | 5,436,813 | ||||||||||
| Total deposits | 7,417,765 | 7,230,035 | 7,125,944 | 7,055,311 | ||||||||||
| Short-term borrowings: | ||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 60,025 | 72,346 | 63,553 | 82,591 | ||||||||||
| Other short-term borrowings | 1,152 | 176,852 | 102,124 | 166,989 | ||||||||||
| Total short-term borrowings | 61,177 | 249,198 | 165,677 | 249,580 | ||||||||||
| Long-term debt and mandatorily redeemable securities | 41,210 | 39,156 | 39,220 | 39,406 | ||||||||||
| Subordinated notes | 58,764 | 58,764 | 58,764 | 58,764 | ||||||||||
| Accrued expenses and other liabilities | 163,656 | 173,279 | 199,136 | 183,227 | ||||||||||
| Total liabilities | 7,742,572 | 7,750,432 | 7,588,741 | 7,586,288 | ||||||||||
| 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 March 31, 2025, December 31, 2024, September 30, 2024, and March 31, 2024, respectively | 436,538 | 436,538 | 436,538 | 436,538 | ||||||||||
| Retained earnings | 921,717 | 890,937 | 868,075 | 812,413 | ||||||||||
| Cost of common stock in treasury (3,643,063, 3,685,512, 3,691,291, and 3,728,016 | ||||||||||||||
| shares at March 31, 2025, December 31, 2024, September 30, 2024, and March 31, 2024, respectively) | (128,912 | ) | (129,175 | ) | (129,134 | ) | 129,790 | ) | ||||||
| Accumulated other comprehensive loss | (67,884 | ) | (87,232 | ) | (71,226 | ) | (109,275 | ) | ||||||
| Total shareholders' equity | 1,161,459 | 1,111,068 | 1,104,253 | 1,009,886 | ||||||||||
| Noncontrolling interests | 59,083 | 70,438 | 70,952 | 71,663 | ||||||||||
| Total equity | 1,220,542 | 1,181,506 | 1,175,205 | 1,081,549 | ||||||||||
| Total liabilities and equity | $ | 8,963,114 | $ | 8,931,938 | $ | 8,763,946 | $ | 8,667,837 |
| 1st SOURCE CORPORATION | |||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
| (Unaudited - Dollars in thousands, except per share amounts) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2025 | 2024 | 2024 | |||||||||
| Interest income: | |||||||||||
| Loans and leases | $ | 113,560 | $ | 113,826 | $ | 109,202 | |||||
| Investment securities, taxable | 8,153 | 7,621 | 6,079 | ||||||||
| Investment securities, tax-exempt | 277 | 278 | 260 | ||||||||
| Other | 1,314 | 1,425 | 927 | ||||||||
| Total interest income | 123,304 | 123,150 | 116,468 | ||||||||
| Interest expense: | |||||||||||
| Deposits | 39,846 | 40,221 | 39,744 | ||||||||
| Short-term borrowings | 232 | 2,207 | 3,102 | ||||||||
| Subordinated notes | 1,014 | 1,041 | 1,061 | ||||||||
| Long-term debt and mandatorily redeemable securities | 1,274 | 315 | 646 | ||||||||
| Total interest expense | 42,366 | 43,784 | 44,553 | ||||||||
| Net interest income | 80,938 | 79,366 | 71,915 | ||||||||
| Provision for credit losses: | |||||||||||
| Provision for credit losses - loans and leases | 2,112 | 3,904 | 6,595 | ||||||||
| Provision (recovery of provision) for credit losses - unfunded loan commitments | 1,153 | (324 | ) | 882 | |||||||
| Total provision for credit losses | 3,265 | 3,580 | 7,477 | ||||||||
| Net interest income after provision for credit losses | 77,673 | 75,786 | 64,438 | ||||||||
| Noninterest income: | |||||||||||
| Trust and wealth advisory | 6,666 | 6,817 | 6,287 | ||||||||
| Service charges on deposit accounts | 3,071 | 3,325 | 3,070 | ||||||||
| Debit card | 4,149 | 4,424 | 4,201 | ||||||||
| Mortgage banking | 853 | 938 | 950 | ||||||||
| Insurance commissions | 2,440 | 1,702 | 1,776 | ||||||||
| Equipment rental | 899 | 1,102 | 1,671 | ||||||||
| Losses on investment securities available-for-sale | — | (3,889 | ) | — | |||||||
| Other | 5,025 | 4,063 | 4,201 | ||||||||
| Total noninterest income | 23,103 | 18,482 | 22,156 | ||||||||
| Noninterest expense: | |||||||||||
| Salaries and employee benefits | 32,115 | 31,825 | 29,572 | ||||||||
| Net occupancy | 3,224 | 3,024 | 2,996 | ||||||||
| Furniture and equipment | 1,347 | 1,702 | 1,149 | ||||||||
| Data processing | 7,291 | 7,353 | 6,500 | ||||||||
| Depreciation - leased equipment | 718 | 879 | 1,288 | ||||||||
| Professional fees | 1,668 | 2,112 | 1,345 | ||||||||
| FDIC and other insurance | 1,440 | 1,435 | 1,657 | ||||||||
| Business development and marketing | 1,925 | 1,435 | 1,744 | ||||||||
| Other | 3,348 | 4,443 | 2,453 | ||||||||
| Total noninterest expense | 53,076 | 54,208 | 48,704 | ||||||||
| Income before income taxes | 47,700 | 40,060 | 37,890 | ||||||||
| Income tax expense | 10,177 | 8,623 | 8,428 | ||||||||
| Net income | 37,523 | 31,437 | 29,462 | ||||||||
| Net (income) loss attributable to noncontrolling interests | (3 | ) | 1 | (7 | ) | ||||||
| Net income available to common shareholders | $ | 37,520 | $ | 31,438 | $ | 29,455 | |||||
| Per common share: | |||||||||||
| Basic net income per common share | $ | 1.52 | $ | 1.27 | $ | 1.19 | |||||
| Diluted net income per common share | $ | 1.52 | $ | 1.27 | $ | 1.19 | |||||
| Basic weighted average common shares outstanding | 24,546,819 | 24,515,454 | 24,459,088 | ||||||||
| Diluted weighted average common shares outstanding | 24,546,819 | 24,515,454 | 24,459,088 | ||||||||
| 1st SOURCE CORPORATION | ||||||||||||||||||||||||||
| DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||
| INTEREST RATES AND INTEREST DIFFERENTIAL | ||||||||||||||||||||||||||
| (Unaudited - Dollars in thousands) | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||||||||||||||||||||
| 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 | $ | 1,488,005 | $ | 8,153 | 2.22 % | $ | 1,548,340 | $ | 7,621 | 1.96 % | $ | 1,576,579 | $ | 6,079 | 1.55 % | |||||||||||
| Tax exempt(1) | 31,172 | 349 | 4.54 % | 31,676 | 350 | 4.40 % | 31,515 | 327 | 4.17 % | |||||||||||||||||
| Mortgages held for sale | 2,409 | 39 | 6.57 % | 3,159 | 52 | 6.55 % | 1,830 | 34 | 7.47 % | |||||||||||||||||
| Loans and leases, net of unearned discount(1) | 6,798,952 | 113,596 | 6.78 % | 6,676,421 | 113,852 | 6.78 % | 6,504,069 | 109,249 | 6.76 % | |||||||||||||||||
| Other investments | 114,252 | 1,314 | 4.66 % | 118,468 | 1,425 | 4.79 % | 68,172 | 927 | 5.47 % | |||||||||||||||||
| Total earning assets(1) | 8,434,790 | 123,451 | 5.94 % | 8,378,064 | 123,300 | 5.85 % | 8,182,165 | 116,616 | 5.73 % | |||||||||||||||||
| Cash and due from banks | 64,009 | 74,243 | 61,889 | |||||||||||||||||||||||
| Allowance for loan and lease losses | (157,318) | (153,798) | (148,982) | |||||||||||||||||||||||
| Other assets | 514,797 | 525,955 | 557,072 | |||||||||||||||||||||||
| Total assets | $ | 8,856,278 | $ | 8,824,464 | $ | 8,652,144 | ||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 5,745,134 | $ | 39,846 | 2.81 % | $ | 5,506,501 | $ | 40,221 | 2.91 % | $ | 5,394,854 | $ | 39,744 | 2.96 % | |||||||||||
| Short-term borrowings: | ||||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 58,232 | 104 | 0.72 % | 67,697 | 176 | 1.03 % | 47,973 | 47 | 0.39 % | |||||||||||||||||
| Other short-term borrowings | 18,450 | 128 | 2.81 % | 169,133 | 2,031 | 4.78 % | 234,672 | 3,055 | 5.24 % | |||||||||||||||||
| Subordinated notes | 58,764 | 1,014 | 7.00 % | 58,764 | 1,041 | 7.05 % | 58,764 | 1,061 | 7.26 % | |||||||||||||||||
| Long-term debt and mandatorily redeemable securities | 39,675 | 1,274 | 13.02 % | 39,001 | 315 | 3.21 % | 47,217 | 646 | 5.50 % | |||||||||||||||||
| Total interest-bearing liabilities | 5,920,255 | 42,366 | 2.90 % | 5,841,096 | 43,784 | 2.98 % | 5,783,480 | 44,553 | 3.10 % | |||||||||||||||||
| Noninterest-bearing deposits | 1,588,408 | 1,639,648 | 1,616,251 | |||||||||||||||||||||||
| Other liabilities | 139,379 | 157,383 | 167,759 | |||||||||||||||||||||||
| Shareholders' equity | 1,141,922 | 1,115,473 | 1,006,286 | |||||||||||||||||||||||
| Noncontrolling interests | 66,314 | 70,864 | 78,368 | |||||||||||||||||||||||
| Total liabilities and equity | $ | 8,856,278 | $ | 8,824,464 | $ | 8,652,144 | ||||||||||||||||||||
| Less: Fully tax-equivalent adjustments | (147) | (150) | (148) | |||||||||||||||||||||||
| Net interest income/margin (GAAP-derived)(1) | $ | 80,938 | 3.89 % | $ | 79,366 | 3.77 % | $ | 71,915 | 3.54 % | |||||||||||||||||
| Fully tax-equivalent adjustments | 147 | 150 | 148 | |||||||||||||||||||||||
| Net interest income/margin - FTE(1) | $ | 81,085 | 3.90 % | $ | 79,516 | 3.78 % | $ | 72,063 | 3.54 % | |||||||||||||||||
| (1) See "Reconciliation of Non-GAAP Financial Measures" for more information on this performance measure/ratio. | ||||||||||||||||||||||||||
| 1st SOURCE CORPORATION | |||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | |||||||||||
| (Unaudited - Dollars in thousands, except per share data) | |||||||||||
| Three Months Ended | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2025 | 2024 | 2024 | |||||||||
| Calculation of Net Interest Margin | |||||||||||
| (A) | Interest income (GAAP) | $ | 123,304 | $ | 123,150 | $ | 116,468 | ||||
| Fully tax-equivalent adjustments: | |||||||||||
| (B) | - Loans and leases | 75 | 78 | 81 | |||||||
| (C) | - Tax exempt investment securities | 72 | 72 | 67 | |||||||
| (D) | Interest income - FTE (A+B+C) | 123,451 | 123,300 | 116,616 | |||||||
| (E) | Interest expense (GAAP) | 42,366 | 43,784 | 44,553 | |||||||
| (F) | Net interest income (GAAP) (A-E) | 80,938 | 79,366 | 71,915 | |||||||
| (G) | Net interest income - FTE (D-E) | 81,085 | 79,516 | 72,063 | |||||||
| (H) | Annualization factor | 4.056 | 3.978 | 4.022 | |||||||
| (I) | Total earning assets | $ | 8,434,790 | $ | 8,378,064 | $ | 8,182,165 | ||||
| Net interest margin (GAAP-derived) (F*H)/I | 3.89 % | 3.77 % | 3.54 % | ||||||||
| Net interest margin - FTE (G*H)/I | 3.90 % | 3.78 % | 3.54 % | ||||||||
| Calculation of Efficiency Ratio | |||||||||||
| (F) | Net interest income (GAAP) | $ | 80,938 | $ | 79,366 | $ | 71,915 | ||||
| (G) | Net interest income - FTE | 81,085 | 79,516 | 72,063 | |||||||
| (J) | Plus: noninterest income (GAAP) | 23,103 | 18,482 | 22,156 | |||||||
| (K) | Less: (gains) losses on investment securities and partnership investments | (1,427) | 3,487 | (1,037 | ) | ||||||
| (L) | Less: depreciation - leased equipment | (718) | (879) | (1,288 | ) | ||||||
| (M) | Total net revenue (GAAP) (F+J) | 104,041 | 97,848 | 94,071 | |||||||
| (N) | Total net revenue - adjusted (G+J-K-L) | 102,043 | 100,606 | 91,894 | |||||||
| (O) | Noninterest expense (GAAP) | 53,076 | 54,208 | 48,704 | |||||||
| (L) | Less:depreciation - leased equipment | (718) | (879) | (1,288 | ) | ||||||
| (P) | Noninterest expense - adjusted (O-L) | 52,358 | 53,329 | 47,416 | |||||||
| Efficiency ratio (GAAP-derived) (O/M) | 51.01 % | 55.40 % | 51.77 % | ||||||||
| Efficiency ratio - adjusted (P/N) | 51.31 % | 53.01 % | 51.60 % | ||||||||
| End of Period | |||||||||||
| March 31, | December 31, | March 31, | |||||||||
| 2025 | 2024 | 2024 | |||||||||
| Calculation of Tangible Common Equity-to-Tangible Assets Ratio | |||||||||||
| (Q) | Total common shareholders' equity (GAAP) | $ | 1,161,459 | $ | 1,111,068 | $ | 1,009,886 | ||||
| (R) | Less: goodwill and intangible assets | (83,895) | (83,897) | (83,912) | |||||||
| (S) | Total tangible common shareholders' equity (Q-R) | $ | 1,077,564 | $ | 1,027,171 | $ | 925,974 | ||||
| (T) | Total assets (GAAP) | 8,963,114 | 8,931,938 | 8,667,837 | |||||||
| (R) | Less: goodwill and intangible assets | (83,895) | (83,897) | (83,912 | ) | ||||||
| (U) | Total tangible assets (T-R) | $ | 8,879,219 | $ | 8,848,041 | $ | 8,583,925 | ||||
| Common equity-to-assets ratio (GAAP-derived) (Q/T) | 12.96 % | 12.44 % | 11.65 % | ||||||||
| Tangible common equity-to-tangible assets ratio (S/U) | 12.14 % | 11.61 % | 10.79 % | ||||||||
| Calculation of Tangible Book Value per Common Share | |||||||||||
| (Q) | Total common shareholders' equity (GAAP) | $ | 1,161,459 | $ | 1,111,068 | $ | 1,009,886 | ||||
| (V) | Actual common shares outstanding | 24,562,611 | 24,520,162 | 24,477,658 | |||||||
| Book value per common share (GAAP-derived) (Q/V)*1000 | $ | 47.29 | $ | 45.31 | $ | 41.26 | |||||
| Tangible common book value per share (S/V)*1000 | $ | 43.87 | $ | 41.89 | $ | 37.83 | |||||
The NASDAQ Stock Market National Market Symbol: "SRCE" (CUSIP #336901 10 3)
Please contact us at shareholder@1stsource.com
Brett Bauer
574-235-2000
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/249510
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