1st Source (NASDAQ:SRCE) Announces Quarterly Earnings Results

1st Source (NASDAQ:SRCE) posted its quarterly earnings data on Thursday. The financial services provider reported $2.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.83 by $0.20, FiscalAI reports. 1st Source had a return on equity of 13.62% and a net margin of 28.85%. The firm had revenue of $118.83 million for the quarter, compared to the consensus estimate of $118.11 million.

1st Source Trading Up 0.1%

NASDAQ:SRCE opened at $87.29 on Friday. The company has a debt-to-equity ratio of 0.07, a current ratio of 0.97 and a quick ratio of 0.97. 1st Source has a fifty-two week low of $58.49 and a fifty-two week high of $91.46. The stock’s 50-day moving average is $85.94 and its two-hundred day moving average is $81.21. The stock has a market cap of $2.10 billion, a PE ratio of 12.54 and a beta of 0.57.

1st Source Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 13th. Shareholders of record on Tuesday, November 3rd will be paid a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a yield of 2.1%. The ex-dividend date of this dividend is Tuesday, November 3rd. 1st Source’s payout ratio is 25.86%.

Analysts Set New Price Targets

Several research analysts have recently weighed in on SRCE shares. Weiss Ratings raised shares of 1st Source from a “buy (b+)” rating to a “buy (a-)” rating in a research report on Thursday, October 8th. Piper Sandler boosted their price target on shares of 1st Source from $88.00 to $100.00 and gave the company an “overweight” rating in a report on Tuesday, July 28th. Keefe, Bruyette & Woods upped their price target on shares of 1st Source from $79.00 to $82.00 and gave the company a “market perform” rating in a research report on Monday, July 27th. DA Davidson raised their price objective on shares of 1st Source from $77.00 to $87.00 and gave the stock a “neutral” rating in a research note on Monday, July 27th. Finally, Zacks Research lowered shares of 1st Source from a “strong-buy” rating to a “hold” rating in a research note on Monday, September 28th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat, 1st Source currently has a consensus rating of “Moderate Buy” and an average price target of $89.67.

Insider Buying and Selling at 1st Source

In other news, CFO Brett Bauer sold 500 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $87.89, for a total value of $43,945.00. Following the completion of the sale, the chief financial officer directly owned 30,706 shares of the company’s stock, valued at $2,698,750.34. This represents a 1.60% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 20.17% of the stock is owned by corporate insiders.

Key Stories Impacting 1st Source

Here are the key news stories impacting 1st Source this week:

• Positive Sentiment: Record Q3 earnings: Net income rose 17.1% year over year to $49.54 million, while diluted EPS increased to $2.03 from $1.71. EPS exceeded the $1.83 analyst consensus, and revenue of approximately $118.8 million also topped expectations. 1st Source Corporation Reports Record Third Quarter Results, Cash Dividend Declared
• Positive Sentiment: Improving core banking performance: Net interest income increased to $95.59 million from $88.75 million a year earlier. Average loans and leases grew to $7.26 billion, up $112.8 million sequentially, supporting revenue growth. 1st Source Reports Record Third-Quarter Net Income
• Positive Sentiment: Dividend supports shareholder returns: The board declared a quarterly cash dividend of $0.45 per share, or $1.80 annualized, representing a yield of roughly 2%. The dividend is payable November 13 to shareholders of record November 3. 1st Source Declares Quarterly Cash Dividend
• Neutral Sentiment: Credit metrics remained stable: Net charge-offs were only $0.33 million and the provision for credit losses was $0.90 million, although the allowance for loan losses stood at $167.16 million, or 2.28% of loans.
• Negative Sentiment: Limited caution signals: Average deposits increased only slightly from the prior quarter, and reported data showed a 500-share sale by CFO Brett Bauer. These factors may temper the otherwise favorable earnings reaction.

About 1st Source

1st Source Corporation (NASDAQ:SRCE) is a bank holding company headquartered in South Bend, Indiana. Its principal subsidiary, 1st Source Bank, provides banking and financial services to individuals, businesses, and institutions.

The bank offers deposit accounts, consumer and commercial lending, mortgages, cash-management services, treasury services, and online and mobile banking. It also provides trust, investment management, and wealth advisory services, along with insurance-related products through affiliated operations.

1st Source has specialized lending businesses serving industries such as aviation, construction equipment, transportation, and recreational vehicles.