NASDAQ$SRCE

1st Source Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported earnings with net income increasing by 20.61% compared to Q4 2019 and diluted net income per common share increasing by 19.77% from the prior year’s fourth quarter.

1st Source Corporation reported a net income of $26.46 million for the fourth quarter of 2020, up 20.61% compared to $21.94 million earned in the fourth quarter of 2019. Diluted net income per common share for the fourth quarter was $1.03, up 19.77% from the $0.86 earned in the fourth quarter of the previous year.

  • Net income was $26.46 million for the fourth quarter of 2020, up 20.61% over the fourth quarter of 2019.
  • Diluted net income per common share was $1.03 for the fourth quarter of 2020, up 19.77% from the prior year’s fourth quarter.
  • Return on average assets improved to 1.42% and return on average common shareholders’ equity improved to 11.90% for the fourth quarter of 2020.
  • Net interest income increased $6.81 million, up 12.32% from the fourth quarter of 2019.

Headline financials

Total Revenue

$88.2M

Previous: $81M+8.9%
EPS (adj)

$1.03

Previous: $0.86+19.8%
Net Interest Margin

3.5%

Previous: 3.5%+0.9%
Loan Loss Allowance

2.6%

No prior period
Nonperforming Assets

1.2%

No prior period
Capital Expenditures

$862K

Previous: $1.94M-55.6%
Free Cash Flow

$56.6M

Previous: $79.4M-28.7%
Net Income

$26.5M

Previous: $22M+20.5%
Operating Income

$34.2M

Previous: $28.6M+19.5%
Cash & Equivalents

$74.2M

Previous: $83.4M-11.0%
Total Assets

$7.32B

Previous: $6.62B+10.5%
Stock-Based Comp

$916K

Previous: $696K+31.6%

Revenue & EPS history

1st Source · Revenue · Quarterly

$88.2M

Q4 2020+8.9%vs Q4 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

1st Source · $23.5M total across 7 segments · Q4 2022

  • Trust & Wealth Advisory
    $5.61M
  • Other Income
    $5.11M
  • Debit Card Fees
    $4.67M
  • Deposit Charges
    $3.17M
  • Equipment Rental
    $2.56M
  • Insurance Commissions
    $1.54M
  • Mortgage Banking
    $819K

Forward guidance

The company is actively helping clients work through the application process for the second round of PPP loans, with special attention paid to women-owned and minority-owned small businesses.

Tailwinds

  • Actively helping clients work through the application process for the second round of PPP loans.
  • Special attention paid to women-owned and minority-owned small businesses.
  • All safety measures put in place in the spring of 2020 have proven successful in stopping the spread among staff and clients.
  • Plan to keep such measures in place until confident the well-being of all those employed and served can be protected by other means.
  • Continue to review and analyze data from local health departments to make the best decisions possible for the health and safety of team members, clients and communities.

Headwinds

  • The annual net income comparison was adversely impacted by an increased provision for credit losses primarily due to the negative impact on clients from COVID-19.
  • Sizeable impairments in a few accounts.
  • Higher special attention loan balances.
  • Our transportation clients and hotel industry clients remain severely impacted by the COVID-19 pandemic.
  • Demand for leases declined and lower service charges on deposit accounts due to fewer overdraft and non-sufficient fund transactions in 2020 compared to 2019.

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 Q4 2020

Historical avgQ4 2020

+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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