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Dec 31, 2020
1st Source Q4 2020 Earnings Report
Reported earnings with net income increasing by 20.61% compared to Q4 2019 and diluted net income per common share increasing by 19.77% from the prior year’s fourth quarter.
Key Takeaways
1st Source Corporation reported a net income of $26.46 million for the fourth quarter of 2020, up 20.61% compared to $21.94 million earned in the fourth quarter of 2019. Diluted net income per common share for the fourth quarter was $1.03, up 19.77% from the $0.86 earned in the fourth quarter of the previous year.
Net income was $26.46 million for the fourth quarter of 2020, up 20.61% over the fourth quarter of 2019.
Diluted net income per common share was $1.03 for the fourth quarter of 2020, up 19.77% from the prior year’s fourth quarter.
Return on average assets improved to 1.42% and return on average common shareholders’ equity improved to 11.90% for the fourth quarter of 2020.
Net interest income increased $6.81 million, up 12.32% from the fourth quarter of 2019.
Forward Guidance
The company is actively helping clients work through the application process for the second round of PPP loans, with special attention paid to women-owned and minority-owned small businesses.
Positive Outlook
- Actively helping clients work through the application process for the second round of PPP loans.
- Special attention paid to women-owned and minority-owned small businesses.
- All safety measures put in place in the spring of 2020 have proven successful in stopping the spread among staff and clients.
- Plan to keep such measures in place until confident the well-being of all those employed and served can be protected by other means.
- Continue to review and analyze data from local health departments to make the best decisions possible for the health and safety of team members, clients and communities.
Challenges Ahead
- The annual net income comparison was adversely impacted by an increased provision for credit losses primarily due to the negative impact on clients from COVID-19.
- Sizeable impairments in a few accounts.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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