NASDAQ$SRCE

1st Source Corporation · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported a decrease in net income compared to the same quarter last year, but average loans grew and net interest margin increased when adjusted for PPP loans.

1st Source Corporation reported a decrease in net income for the first quarter of 2022, down 2.54% from the first quarter of 2021. However, average loans and leases net of PPP loans grew, and the net interest margin increased when adjusted for the impact of PPP loans. The company also declared a cash dividend of $0.31 per common share, up 3.33% from the previous year.

  • Net income was $27.39 million, down 2.54% from Q1 2021.
  • Diluted net income per common share was $1.10, equal to Q1 2021.
  • Cash dividend of $0.31 per common share was approved, up 3.33% year-over-year.
  • Average loans and leases net of PPP loans grew $185.66 million, up 3.65% year-over-year.

Headline financials

Total Revenue

$82.8M

Previous: $83.3M-0.6%
EPS (adj)

$1.10

Previous: $1.10+0.0%
Net Interest Margin

3.2%

Previous: 3.4%-5.4%
Capital Expenditures

-$113K

Previous: -$280K+59.6%
Free Cash Flow

$27.3M

Previous: $27.8M-1.9%
Net Income

$27.4M

Previous: $28.1M-2.5%
Operating Income

$71.8M

Previous: $74.9M-4.2%
Gross Profit

$80.9M

Previous: $80.3M+0.8%
Cash & Equivalents

$417M

Previous: $69.7M+498.3%
Total Assets

$8.01B

Previous: $7.51B+6.7%
Stock-Based Comp

$732K

Previous: $885K-17.3%

Revenue & EPS history

1st Source · Revenue · Quarterly

$82.8M

Q1 2022-0.6%vs Q1 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

1st Source · $11.1M total across 4 segments · Q1 2022

  • Debit Card Fees
    $4.19M
  • Equipment Rental
    $3.66M
  • Insurance Commissions
    $1.91M
  • Mortgage Banking
    $1.38M

Forward guidance

The Federal Reserve's interest rate increase and signaling of additional increases may contribute to some relief for the margin, which continues to experience pressure from the low interest rate environment.

Tailwinds

  • Federal Reserve's 25 basis point interest rate increase during the quarter
  • Signaling of additional rate increases throughout the remainder of 2022
  • Potential relief for the margin
  • Stable loan and lease quality
  • Plan to work through the remaining PPP loan balances in the second quarter

Headwinds

  • Expected reduction in PPP loan fees
  • Reduction in mortgage income
  • Continued challenges of the COVID-19 pandemic
  • Economic uncertainty stemming from the war in Ukraine
  • Inflationary pressures and prolonged supply chain disruptions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.1%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+2.7%

Avg return

30 days after

60%

39 / 65 earnings

Positive

+10.6%

Q2 2011

Best reaction

-9.5%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%+1.6%+1.0%
Q4 2025-1.8%-3.5%+4.5%
Q3 2025+3.5%+0.4%+5.5%
Q2 2025-0.9%-0.8%+1.9%
Q1 2025-0.9%-0.0%-2.1%
Q3 2024-3.7%+1.5%+11.1%
Q2 2024+7.3%+5.8%+0.3%
Q1 2024-3.2%-2.7%-0.8%
Q4 2023+4.5%+4.6%-0.1%
Q3 2023+2.4%+2.7%+15.7%
Q2 2023+0.4%+2.0%-0.7%
Q1 2023-0.1%-2.2%-4.8%
Q4 2022-9.5%-6.0%-2.6%
Q3 2022+9.1%+14.5%+11.8%
Q2 2022+2.3%+7.2%+13.2%
Q1 2022-1.2%-2.9%-5.8%
Q4 2021-5.3%-0.8%-3.8%
Q3 2021+1.8%+0.6%+1.1%
Q2 2021-1.7%+2.5%+7.6%
Q1 2021+1.9%+2.0%+5.3%
Q4 2020+0.4%-1.8%+2.5%
Q3 2020+5.0%+0.8%+12.2%
Q2 2020+0.9%-0.2%-1.2%
Q1 2020+2.3%+10.4%+1.3%
Q4 2019-1.3%-2.9%-6.0%
Q3 2019+6.6%+9.4%+10.9%
Q2 2019+1.9%+2.2%+3.0%
Q1 2019-3.4%-1.1%-0.4%
Q4 2018+3.3%+2.3%+7.4%
Q3 2018-6.2%-8.6%-4.9%
Q2 2018+4.5%+5.9%+3.2%
Q1 2018+3.9%+5.8%+4.7%
Q4 2017+1.8%+3.0%-1.4%
Q3 2017+0.1%+0.2%-4.4%
Q2 2017+0.3%+1.8%-5.3%
Q1 2017+8.9%+11.9%+1.9%
Q4 2016+7.1%+6.1%+7.1%
Q3 2016-3.7%-2.3%+12.1%
Q2 2016+3.2%+2.3%+3.7%
Q1 2016+0.4%
Q4 2015-1.4%
Q3 2015+2.1%
Q2 2015-3.7%
Q1 2015-1.2%
Q4 2014+2.4%
Q3 2014+1.0%
Q2 2014-0.1%
Q1 2014-5.1%
Q4 2013-1.5%
Q3 2013+4.8%
Q2 2013-0.2%
Q1 2013-0.2%
Q4 2012-0.2%
Q3 2012+1.4%
Q2 2012+3.5%
Q1 2011+0.9%
Q1 2012+1.2%
Q4 2011-0.6%
Q4 2010-0.6%
Q4 2009-0.6%
Q3 2010+2.2%
Q3 2011+2.2%
Q2 2010+10.6%
Q2 2011+10.6%
Q1 2010+3.0%

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