1st Source (NASDAQ:SRCE) Announces Earnings Results, Beats Expectations By $0.20 EPS

1st Source (NASDAQ:SRCE) issued its quarterly earnings data on Thursday. The financial services provider reported $2.03 EPS for the quarter, topping analysts’ consensus estimates of $1.83 by $0.20, FiscalAI reports. The business had revenue of $118.83 million for the quarter, compared to analysts’ expectations of $118.11 million. 1st Source had a net margin of 28.09% and a return on equity of 12.94%.

1st Source Stock Up 1.0%

Shares of SRCE traded up $0.91 during midday trading on Friday, reaching $88.09. 24,428 shares of the company were exchanged, compared to its average volume of 128,226. 1st Source has a 1-year low of $58.49 and a 1-year high of $91.46. The stock has a 50-day moving average price of $85.97 and a 200-day moving average price of $81.17. The company has a current ratio of 0.97, a quick ratio of 0.97 and a debt-to-equity ratio of 0.07. The company has a market cap of $2.12 billion, a price-to-earnings ratio of 13.55 and a beta of 0.57.

1st Source Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Tuesday, November 3rd will be issued a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 2.0%. The ex-dividend date is Tuesday, November 3rd. 1st Source’s dividend payout ratio is currently 27.61%.

Insider Activity

In other news, CFO Brett Bauer sold 500 shares of the stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $87.89, for a total value of $43,945.00. Following the completion of the sale, the chief financial officer owned 30,706 shares in the company, valued at approximately $2,698,750.34. This trade represents a 1.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 20.17% of the company’s stock.

Analysts Set New Price Targets

SRCE has been the topic of several recent analyst reports. Piper Sandler upped their price target on 1st Source from $88.00 to $100.00 and gave the company an “overweight” rating in a research note on Tuesday, July 28th. Zacks Research lowered 1st Source from a “strong-buy” rating to a “hold” rating in a report on Monday, September 28th. DA Davidson increased their target price on shares of 1st Source from $77.00 to $87.00 and gave the stock a “neutral” rating in a research note on Monday, July 27th. Weiss Ratings raised 1st Source from a “buy (b+)” rating to a “buy (a-)” rating in a report on Thursday, October 8th. Finally, Keefe, Bruyette & Woods boosted their price objective on shares of 1st Source from $79.00 to $82.00 and gave the company a “market perform” rating in a research note on Monday, July 27th. One analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, 1st Source currently has an average rating of “Moderate Buy” and an average target price of $89.67.

Trending Headlines about 1st Source

Here are the key news stories impacting 1st Source this week:

• Positive Sentiment: Record earnings beat expectations. Third-quarter net income reached $49.54 million, up 17.13% year over year, while diluted EPS rose to $2.03 from $1.71. This exceeded the $1.83 analyst consensus; a separate Zacks-adjusted figure was reported at $2.16 per share. Revenue of approximately $118.83 million also topped estimates of $118.11 million. 1st Source Corporation Reports Record Third Quarter Results
• Positive Sentiment: Core banking trends improved. GAAP net interest income increased to $95.59 million from $88.75 million a year earlier. Average loans and leases grew to $7.26 billion, while average deposits reached $7.44 billion, supporting expectations for continued revenue generation. Record Third-Quarter Net Income
• Positive Sentiment: Dividend maintained. 1st Source declared a quarterly cash dividend of $0.45 per share, payable November 13 to shareholders of record November 3. The annualized payout is $1.80, representing an indicated yield of about 2.0%. Third-Quarter Earnings and Dividend Announcement
• Neutral Sentiment: Credit metrics remain an area to monitor. The allowance for loan losses was $167.16 million, or 2.28% of loans, while net charge-offs were modest at $0.33 million and the provision for credit losses was $0.90 million. These figures suggest limited current credit stress but remain important for bank investors.
• Neutral Sentiment: Insider activity was limited. One reported transaction showed CFO Brett A. Bauer selling 500 shares; the isolated sale provides little definitive signal about management’s outlook. Insider Activity Details

1st Source Company Profile

1st Source Corporation (NASDAQ:SRCE) is a bank holding company headquartered in South Bend, Indiana. Its principal subsidiary, 1st Source Bank, provides banking and financial services to individuals, businesses, and institutions.

The bank offers deposit accounts, consumer and commercial lending, mortgages, cash-management services, treasury services, and online and mobile banking. It also provides trust, investment management, and wealth advisory services, along with insurance-related products through affiliated operations.

1st Source has specialized lending businesses serving industries such as aviation, construction equipment, transportation, and recreational vehicles.