Loading...
•
Sep 30, 2020
1st Source Q3 2020 Earnings Report
Reported an increase in net income compared to the previous quarter but a decrease compared to the same quarter last year.
Key Takeaways
1st Source Corporation reported a net income of $20.06 million for Q3 2020, an increase of 8.41% from the previous quarter but a decrease of 17.92% compared to Q3 2019. Diluted net income per common share was $0.78, up from $0.72 in the previous quarter but down from $0.95 in Q3 2019. A cash dividend of $0.28 per common share was approved.
Net income was $20.06 million, up 8.41% from the second quarter and down 17.92% from the third quarter of 2019.
Diluted net income per common share was $0.78, up compared to the $0.72 in the previous quarter and down from the prior year’s third quarter of $0.95.
Cash dividend of $0.28 per common share approved, equal to the second quarter and down 3.45% from the $0.29 per common share declared a year ago.
Average loans and leases grew $104.46 million or 1.88% from the previous quarter and $578.26 million or 11.36% from the third quarter of 2019.
Revenue by Segment
Forward Guidance
The company is working with Paycheck Protection Program (PPP) clients to submit loan forgiveness applications to the Small Business Administration (SBA) and anticipates the process to be finished or nearly finished by the end of the second quarter of 2021.
Positive Outlook
- Residential mortgage loan business increased its production volumes and profitability due to record low long term interest rates.
- Working with Paycheck Protection Program (PPP) clients to submit loan forgiveness applications to the Small Business Administration (SBA).
- Streamlined loan forgiveness application for loans $50,000 or less.
- Continuing a positive trend from the first and second quarters, our residential mortgage loan business increased its production volumes and profitability enjoying the second highest quarterly volume in 10 years due to record low long term interest rates.
- During the quarter, we began working with our Paycheck Protection Program (PPP) clients to submit loan forgiveness applications to the Small Business Administration (SBA) and were pleased with the SBA’s announcement of a streamlined loan forgiveness application for loans $50,000 or less.
Challenges Ahead
- Net income is down from the third quarter of 2019.
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
Loading earnings performance data...
Loading earnings reaction data...