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Mar 31, 2020
1st Source Q1 2020 Earnings Report
Reported a decrease in net income compared to the same quarter last year, impacted by increased provision for loan losses.
Key Takeaways
1st Source Corporation reported a net income of $16.41 million for Q1 2020, a decrease of 26.05% compared to $22.20 million in Q1 2019. Diluted net income per common share was $0.64, down from $0.86 in the prior year’s first quarter. The results were impacted by an increased provision for loan and lease losses.
Net income was $16.41 million, down 26.05% from the first quarter of 2019.
Diluted net income per common share was $0.64, down from $0.86 in the prior year’s first quarter.
Cash dividend of $0.28 per common share approved, up 3.70% from the $0.27 per common share declared a year ago.
Average loans and leases grew $240.21 million, up 4.94% from the first quarter of 2019.
1st Source
1st Source
Forward Guidance
The near-term level of uncertainty is unprecedented due to the severity and length of the economic downturn tied to the coronavirus. The continuation of shelter-in-place, the inability to control the virus, and its possible return in the fall or winter could have serious negative impact on our clients and the markets we serve.
Positive Outlook
- The company is well-positioned for the long term.
- The company is well-capitalized.
- The company has appropriate reserves.
- The company has a strong balance sheet.
- Residential mortgage loan business has been booming.
Challenges Ahead
- Uncertainty as to the severity and length of the economic downturn tied to the coronavirus.
- Continuation of shelter-in-place in our markets for prolonged periods of time.
- Inability to control the virus.
- Possible return of the virus in the fall or winter.
- Potential serious negative impact on clients and the markets served.