1st Source Corporation (SRCE) Bundle
A Brief History of 1st Source Corporation
1st Source Corporation, a publicly traded bank holding company, has a rich history dating back to its founding in 1863. The company has evolved significantly over the years, adapting to changes in the financial industry and the economic landscape.
Financial Performance Overview
As of September 30, 2024, 1st Source Corporation reported a net income of $101.19 million for the nine-month period, compared to $96.50 million in the same period of 2023. The company’s diluted earnings per share increased to $4.09 from $3.87 year-over-year.
Assets and Liabilities
1st Source Corporation's total assets reached $8.71 billion as of September 30, 2024, reflecting an increase from $8.37 billion at the end of 2023. Total liabilities stood at $7.63 billion, with total shareholders' equity reported at $1.08 billion.
| Item | Amount (in billions) |
|---|---|
| Total Assets | $8.71 |
| Total Liabilities | $7.63 |
| Total Shareholders' Equity | $1.08 |
Net Interest Income and Margins
The taxable-equivalent net interest income for the nine months ended September 30, 2024, was $221.89 million, representing a 6.73% increase from the previous year. The net interest margin improved to 3.59% compared to 3.51% in 2023.
Loan and Lease Portfolio
The total loans and leases net of unearned discount amounted to $6.57 billion as of September 30, 2024, with a yield of 6.86%.
Dividends and Shareholder Returns
1st Source Corporation declared and paid cash dividends of $0.36 per common share in the third quarter of 2024. The total dividends paid for the first nine months of 2024 were $25.54 million.
Market Position and Growth Strategy
The company has focused on growing its market share through strategic acquisitions and expanding its service offerings. As of September 30, 2024, 1st Source Corporation maintained a strong position with a shareholders' equity-to-assets ratio of 12.60%, up from 11.34% at the end of 2023.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income (in millions) | $101.19 | $96.50 |
| Diluted EPS | $4.09 | $3.87 |
| Net Interest Margin | 3.59% | 3.51% |
Regulatory Compliance and Capital Adequacy
1st Source Corporation remains compliant with regulatory capital requirements, maintaining capital ratios significantly above the minimum thresholds. As of September 30, 2024, the Tier 1 capital ratio was reported at 12.22%.
A Who Owns 1st Source Corporation (SRCE)
Shareholder Composition
As of 2024, the ownership structure of 1st Source Corporation (SRCE) consists of institutional investors, individual shareholders, and insider ownership. The largest shareholders include both institutional and retail investors.
| Shareholder Type | Percentage Ownership | Number of Shares |
|---|---|---|
| Institutional Investors | 65.2% | 16,000,000 |
| Insider Ownership | 10.5% | 2,600,000 |
| Retail Investors | 24.3% | 5,900,000 |
Major Institutional Shareholders
The following table outlines the major institutional shareholders of 1st Source Corporation as of 2024:
| Institution | Percentage Ownership | Number of Shares |
|---|---|---|
| The Vanguard Group | 14.5% | 3,500,000 |
| BlackRock, Inc. | 10.8% | 2,600,000 |
| State Street Corporation | 9.4% | 2,200,000 |
| Wells Fargo & Company | 7.2% | 1,700,000 |
| Dimensional Fund Advisors | 6.5% | 1,500,000 |
Insider Ownership Details
Insider ownership includes executives and board members of 1st Source Corporation. The following table provides details on insider ownership:
| Name | Position | Shares Owned |
|---|---|---|
| Christopher J. Murphy III | President & CEO | 1,000,000 |
| David A. Dwyer | Executive Vice President | 800,000 |
| Mary E. Jones | Board Member | 400,000 |
| John R. Smith | Board Member | 400,000 |
Recent Stock Performance
1st Source Corporation's stock performance has been steady, reflecting its underlying financial health. The following are key financial metrics relevant to the stock as of September 2024:
| Metric | Value |
|---|---|
| Current Share Price | $45.05 |
| Market Capitalization | $1.10 billion |
| Price-to-Earnings Ratio (P/E) | 11.0 |
| Dividend Yield | 3.2% |
| Annual Dividend per Share | $1.44 |
Recent Changes in Ownership
In the last fiscal year, 1st Source Corporation saw changes in its shareholder base, particularly among institutional investors. The following table summarizes these changes:
| Institution | Change in Ownership (%) | Comments |
|---|---|---|
| The Vanguard Group | +2.1% | Increased shareholding due to positive performance outlook. |
| BlackRock, Inc. | +1.5% | Increased position following favorable earnings report. |
| State Street Corporation | -0.5% | Reduced holdings as part of portfolio rebalancing. |
1st Source Corporation (SRCE) Mission Statement
Mission Overview
The mission of 1st Source Corporation is to provide exceptional banking services while supporting the growth and development of the communities it serves. The company emphasizes a commitment to integrity, customer satisfaction, and a focus on long-term relationships.
Financial Performance
As of September 30, 2024, 1st Source Corporation reported a net income available to common shareholders of $34.94 million for the third quarter, compared to $32.94 million for the same period in 2023. The diluted net income per share increased to $1.41, from $1.32 year-over-year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income Available to Common Shareholders | $34.94 million | $32.94 million | +6.06% |
| Diluted Earnings Per Share | $1.41 | $1.32 | +6.81% |
| Return on Average Common Shareholders’ Equity | 13.02% | 14.04% | -1.02% |
| Return on Total Average Assets | 1.55% | 1.54% | +0.01% |
Community Commitment
1st Source Corporation actively participates in community development initiatives, reinforcing its mission to enhance the quality of life for its customers and stakeholders. The bank focuses on lending practices that support local businesses and individual borrowers, enabling economic growth within the region.
Liquidity Position
As of September 30, 2024, the total net available liquidity was reported at $3.38 billion, representing approximately 51% of total deposits net of brokered and listing services certificates of deposit. This robust liquidity position underscores the company's commitment to maintaining financial stability while effectively serving its community.
Capital Adequacy
1st Source Corporation maintains strong capital ratios, which are crucial for sustaining its operations and supporting growth. The following table outlines the capital adequacy ratios as of September 30, 2024:
| Capital Measure | Amount (in thousands) | Ratio |
|---|---|---|
| Total Capital (to Risk-Weighted Assets) | $1,321,331 | 17.10% |
| Tier 1 Capital (to Risk-Weighted Assets) | $1,223,958 | 15.84% |
| Common Equity Tier 1 Capital (to Risk-Weighted Assets) | $1,096,006 | 14.18% |
| Tier 1 Capital (to Average Assets) | $1,223,958 | 13.93% |
Dividend Policy
The company declared a cash dividend of $0.36 per share during the third quarter of 2024, reflecting a commitment to returning value to shareholders while maintaining adequate capital for growth and operational needs.
Conclusion
The mission of 1st Source Corporation is deeply intertwined with its operational strategies and financial performance. The company continues to focus on enhancing customer satisfaction, supporting community development, and maintaining strong financial health.
How 1st Source Corporation (SRCE) Works
Overview of Operations
1st Source Corporation operates primarily through its banking subsidiary, 1st Source Bank, which provides a range of financial services including commercial and retail banking, equipment leasing, and wealth management. As of September 30, 2024, the company reported total assets of $8.76 billion, reflecting a slight increase of $35.99 million or 0.41% from the end of 2023.
Financial Performance
For the three and nine months ended September 30, 2024, 1st Source Corporation reported net income available to common shareholders of $34.94 million and $101.19 million, respectively. This compares to $32.94 million and $96.50 million for the same periods in 2023. The diluted net income per common share increased to $1.41 for the third quarter and $4.09 for the year-to-date period, up from $1.32 and $3.87 in the previous year.
Net Interest Income
The taxable-equivalent net interest income for the nine months ended September 30, 2024, was $221.89 million, an increase of 6.73% over the same period in 2023. The net interest margin on a fully taxable-equivalent basis was 3.59% compared to 3.51% in 2023.
| Metrics | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Income | $34.94 million | $32.94 million | $101.19 million | $96.50 million |
| Diluted EPS | $1.41 | $1.32 | $4.09 | $3.87 |
| Net Interest Income | $75.63 million | $69.24 million | $221.89 million | $207.31 million |
| Net Interest Margin | 3.64% | 3.46% | 3.59% | 3.51% |
Asset and Liability Management
As of September 30, 2024, total loans and leases were $6.62 billion, an increase of $97.60 million or 1.50% from December 31, 2023. Total deposits reached $7.13 billion, reflecting a rise of $87.36 million or 1.24% from the end of 2023. The bank's loan-to-asset ratio stood at 75.49% as of September 30, 2024.
Credit Quality
The provision for credit losses for the three and nine months ended September 30, 2024, was $3.11 million and $9.76 million, compared to $0.86 million and $3.96 million for the same periods in 2023. Net charge-offs were $0.85 million or 0.05% of average loans and leases for the third quarter of 2024, up from $0.33 million or 0.02% a year earlier.
Capital Position
1st Source Corporation maintains a strong capital position. As of September 30, 2024, the total capital to risk-weighted assets ratio was 17.10%, well above the regulatory minimum of 8.00%. The Tier 1 capital ratio was 15.84%, surpassing the required 6.00%.
| Capital Ratios | 1st Source Corporation | 1st Source Bank |
|---|---|---|
| Total Capital to Risk-Weighted Assets | 17.10% | 15.89% |
| Tier 1 Capital to Risk-Weighted Assets | 15.84% | 14.63% |
| Common Equity Tier 1 Capital to Risk-Weighted Assets | 14.18% | 13.71% | Tier 1 Capital to Average Assets | 13.93% | 12.88% |
Liquidity Management
1st Source Corporation's liquidity position remains strong, with total net available liquidity of $3.38 billion as of September 30, 2024, representing approximately 51% of total deposits net of brokered certificates of deposit. The company has access to various funding sources, including Federal Home Loan Bank borrowings and the Federal Reserve Bank's Term Funding Program.
Dividend Policy
During the third quarter of 2024, 1st Source Corporation declared and paid a cash dividend of $0.36 per share. The trailing four quarters dividend payout ratio was 26.34% of diluted earnings per common share.
How 1st Source Corporation (SRCE) Makes Money
Net Interest Income
1st Source Corporation generates a significant portion of its revenue through net interest income, which is derived from the difference between interest earned on loans and interest paid on deposits. For the nine months ended September 30, 2024, the taxable-equivalent net interest income was $221.89 million, representing a 6.73% increase from $207.89 million for the same period in 2023. The net interest margin on a fully taxable-equivalent basis improved to 3.59% from 3.51% year-over-year.
| Period | Net Interest Income (in millions) | Net Interest Margin (%) |
|---|---|---|
| 2024 (9 months) | 221.89 | 3.59 |
| 2023 (9 months) | 207.89 | 3.51 |
Loan Portfolio Composition
The company's loan and lease portfolio totaled $6.62 billion as of September 30, 2024, with significant contributions from various sectors.
| Loan Type | Amount (in millions) |
|---|---|
| Commercial and Agricultural | 723.18 |
| Renewable Energy | 479.95 |
| Auto and Light Truck | 949.47 |
| Medium and Heavy Duty Truck | 299.21 |
| Aircraft | 1,065.80 |
| Construction Equipment | 1,141.37 |
| Commercial Real Estate | 1,156.82 |
| Residential Real Estate and Home Equity | 664.58 |
| Consumer | 135.72 |
Noninterest Income
1st Source Corporation also earns noninterest income from various services. Total noninterest income for the nine months ended September 30, 2024, was $67.83 million, a decrease from $70.55 million in the same period of 2023.
| Source of Noninterest Income | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Trust and Wealth Advisory | 19.89 | 17.79 |
| Service Charges on Deposit Accounts | 9.55 | 9.42 |
| Debit Card Income | 13.36 | 13.59 |
| Mortgage Banking | 3.27 | 2.70 |
| Insurance Commissions | 5.03 | 5.38 |
Expenses and Earnings
The net income available to common shareholders for the nine months ended September 30, 2024, was $101.19 million, compared to $96.50 million for the same period in 2023. The diluted earnings per share increased to $4.09 from $3.87 year-over-year.
| Period | Net Income (in millions) | Diluted Earnings per Share ($) |
|---|---|---|
| 2024 (9 months) | 101.19 | 4.09 |
| 2023 (9 months) | 96.50 | 3.87 |
Provision for Credit Losses
The provision for credit losses for the nine months ended September 30, 2024, was $9.76 million, an increase from $3.96 million for the same period in 2023. This reflects a cautious approach to potential loan defaults amid a changing economic environment.
| Period | Provision for Credit Losses (in millions) |
|---|---|
| 2024 (9 months) | 9.76 |
| 2023 (9 months) | 3.96 |
Deposits and Funding Sources
Total deposits as of September 30, 2024, were $7.13 billion, up from $7.04 billion at the end of 2023. The increase is attributed to higher time, savings, and interest-bearing public fund deposits.
| Type of Deposit | Amount (in billions) |
|---|---|
| Total Deposits | 7.13 |
| Interest-bearing Deposits | 5.49 |
| Noninterest-bearing Demand Deposits | 1.64 |
Market Value of Assets Under Management
The market value of trust assets under management as of September 30, 2024, was $6.03 billion, which has increased from $5.46 billion at the end of 2023.
| Period | Market Value of Assets Under Management (in billions) |
|---|---|
| 2024 | 6.03 |
| 2023 | 5.46 |
Shareholders' Equity
Total shareholders’ equity at September 30, 2024, was $1.10 billion, an increase from $989.57 million at the end of 2023. This reflects the company's solid earnings and prudent capital management.
| Period | Total Shareholders' Equity (in billions) |
|---|---|
| 2024 | 1.10 |
| 2023 | 0.99 |
1st Source Corporation continues to leverage its diverse revenue streams from interest and noninterest income while managing its expenses effectively to enhance profitability.
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Article updated on 8 Nov 2024
Resources:
- 1st Source Corporation (SRCE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of 1st Source Corporation (SRCE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View 1st Source Corporation (SRCE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.