NASDAQ$SRCE

1st Source Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported record annual earnings with a cash dividend declared.

1st Source Corporation reported a net income of $28.43 million for Q4 2023, a decrease of 8.49% compared to the same quarter last year. Diluted net income per common share for the fourth quarter was $1.15, down 8.00% from the $1.25 earned in the fourth quarter of the previous year.

  • Net income was $28.43 million for the fourth quarter of 2023, down 8.49% from the fourth quarter of 2022.
  • Diluted net income per common share was $1.15 for the fourth quarter of 2023, down 8.00% from the prior year’s fourth quarter.
  • Cash dividend of $0.34 per common share was approved, up 6.25% from the cash dividend declared a year ago.
  • Average loans and leases grew $141.98 million during the fourth quarter, up 2.27% from the previous quarter.

Headline financials

Total Revenue

$91.6M

Previous: $94.7M-3.3%
EPS (adj)

$1.15

Previous: $1.25-8.0%
Efficiency Ratio (Adj.)

56.4%

No prior period
Net Interest Margin

3.5%

Previous: 3.7%-4.9%
Loan Loss Allowance

2.3%

Previous: 2.3%-2.6%
Nonperforming Assets

0.4%

Previous: 0.5%-17.8%
Capital Expenditures

$3.37M

Previous: $1.11M+203.5%
Net Income

$28.4M

Previous: $31.1M-8.5%
Operating Income

$36.5M

Previous: $41M-11.0%
Stock-Based Comp

$1.48M

Previous: $1.08M+37.7%

Revenue & EPS history

1st Source · Revenue · Quarterly

$91.6M

Q4 2023-3.3%vs Q4 2022
Beat estimate in 12 of 14 quarters(86%)
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 focused on growing its commercial banking footprint and continuing investment in its traditional markets. They have opened a loan production office in Lake County, Indiana, expanded efforts in Indianapolis, and opened a new banking center in Niles, Michigan.

Tailwinds

  • Opened a loan production office in Lake County, Indiana in early January 2024.
  • Continuing to build presence in Indianapolis with a loan production office opened in the second quarter of 2023.
  • Opened a new Niles Banking Center in Niles, Michigan on December 21, 2023.
  • Commitment to serving local small businesses in all markets.
  • Expanded tax-equivalent net interest margin during the fourth quarter.

Headwinds

  • Repositioning of the investment securities portfolio resulted in losses of $2.88 million.
  • Charitable contribution of $1 million was made to the 1st Source Foundation.
  • Noninterest income decreased $3.20 million, or 13.76% from the fourth quarter a year ago.
  • Net interest margin decreased of 18 basis points from the fourth quarter of 2022.
  • Fourth quarter net income was $28.43 million, a decrease of 8.49% compared to $31.07 million earned in the fourth quarter of 2022.

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 2023

Historical avgQ4 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro