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Mar 31, 2023
1st Source Q1 2023 Earnings Report
Reported strong first quarter results with increased net income and earnings per share.
Key Takeaways
1st Source Corporation reported a strong first quarter with net income of $31.12 million, up 13.63% from the first quarter of 2022, and diluted net income per common share of $1.25, up 13.63% from $1.10 in the same period last year. Average loans and leases grew by 3.35% from the previous quarter and 13.37% year-over-year. The board approved a cash dividend of $0.32 per common share, a 3.23% increase from the previous year.
Net income increased to $31.12 million, a 13.63% rise compared to Q1 2022.
Diluted net income per common share grew to $1.25, marking a 13.64% increase from Q1 2022.
Average loans and leases experienced growth, increasing by 3.35% from the previous quarter and 13.37% year-over-year.
A cash dividend of $0.32 per common share was approved, up 3.23% from the previous year.
1st Source
1st Source
Forward Guidance
The document does not contain specific forward guidance, but it expresses optimism about the company's strong start to 2023 and its balanced approach to bank management.
Positive Outlook
- Strong capital position maintained.
- Stable liquidity position.
- Steady credit quality with net recoveries recorded.
- Modest decrease in deposit balances due to expected seasonal trends and rate competition.
- Forbes named 1st Source among ‘America’s Best Midsize Employers’ for the third consecutive year.
Challenges Ahead
- Rate competition for deposits increased during the quarter.
- Deposit balances decreased modestly at period end due to rate competition and expected seasonal trends.
- Noninterest expense increased due to various factors including higher salaries and insurance claims.
- Equipment rental income continued to shrink due to declining demand for operating leases.
- Elevated mortgage interest rates have negatively impacted origination volumes and housing affordability.