1st Source Q2 net income rises 1.43% y/y

Overview

• 1st Source Q2 net income $37.32 mln, up 1.43% yr/yr

• Diluted EPS $1.51, up 1.34% yr/yr

• Tax-equivalent net interest income up 15.03% yr/yr

• Provision for credit losses increased due to loan growth and charge-offs

Outlook

• Company remains cautious due to economic uncertainty impacting customer businesses

• 1st Source highlights solid liquidity and conservative capital position amid uncertainty

Result Drivers

• NET INTEREST INCOME - Increased due to higher rates on investment securities and increased average loan and lease balances

• CREDIT LOSSES - Provision for credit losses rose due to loan growth, increased net charge-offs, and nonaccrual loans

• INVESTMENT LOSSES - Realized losses from strategic repositioning trades in investment portfolio impacted results

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for 1st Source Corp is $67.00, about 5.7% above its July 23 closing price of $63.16

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nNFC98gNgy