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1st Source Q1 2025 Earnings Report
1st Source Corporation reported record first quarter results with significant increases in net income, diluted net income per common share, and returns on average assets and common shareholders' equity.
Key Takeaways
1st Source Corporation achieved record quarterly net income of $37.52 million in the first quarter of 2025, marking a substantial increase from both the previous quarter and the prior year. This performance was driven by higher rates on investment securities, increased average loan and lease balances, and reduced reliance on high-cost short-term borrowings, leading to an expansion in net interest margin.
Net income reached a record $37.52 million, up 19.35% from the previous quarter and 27.38% from the first quarter of 2024.
Diluted net income per common share was $1.52, an increase of 19.69% from the previous quarter and 27.73% from the prior year's first quarter.
Return on average assets increased to 1.72%, and return on average common shareholders' equity rose to 13.33%.
Average loans and leases grew by $122.53 million (1.84%) from the previous quarter, and average deposits increased by $187.39 million (2.62%).
Revenue by Segment
Forward Guidance
1st Source Corporation anticipates continued economic uncertainty but remains confident in its strong balance sheet and conservative capital position to navigate future challenges. The company is focused on maintaining its mission of client success and community service.
Positive Outlook
- Achieved record quarterly net income despite economic uncertainty.
- Expanded net interest margin for the fifth consecutive quarter.
- Increased average loan and lease balances.
- Reduced reliance on higher costing short-term borrowings.
- Maintained a strong balance sheet and conservative capital position.
Challenges Ahead
- Persistent deposit rate competition.
- Economic uncertainty is increasing daily, adversely impacting customers and businesses.
- Demand for operating leases continued to decline.
- Decreases in mortgage banking income from lower sales volumes and servicing fees.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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