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Dec 31, 2023
1st Source Q4 2023 Earnings Report
Reported record annual earnings with a cash dividend declared.
Key Takeaways
1st Source Corporation reported a net income of $28.43 million for Q4 2023, a decrease of 8.49% compared to the same quarter last year. Diluted net income per common share for the fourth quarter was $1.15, down 8.00% from the $1.25 earned in the fourth quarter of the previous year.
Net income was $28.43 million for the fourth quarter of 2023, down 8.49% from the fourth quarter of 2022.
Diluted net income per common share was $1.15 for the fourth quarter of 2023, down 8.00% from the prior year’s fourth quarter.
Cash dividend of $0.34 per common share was approved, up 6.25% from the cash dividend declared a year ago.
Average loans and leases grew $141.98 million during the fourth quarter, up 2.27% from the previous quarter.
1st Source
1st Source
1st Source Revenue by Segment
Revenue by Segment
Trust and Wealth Advisory Revenue
CapyFin.comService Charges on Deposit Accounts Revenue
CapyFin.comDebit Card Revenue
CapyFin.comMortgage Banking Revenue
CapyFin.comInsurance Commissions Revenue
CapyFin.comEquipment Rental Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The company is focused on growing its commercial banking footprint and continuing investment in its traditional markets. They have opened a loan production office in Lake County, Indiana, expanded efforts in Indianapolis, and opened a new banking center in Niles, Michigan.
Positive Outlook
- Opened a loan production office in Lake County, Indiana in early January 2024.
- Continuing to build presence in Indianapolis with a loan production office opened in the second quarter of 2023.
- Opened a new Niles Banking Center in Niles, Michigan on December 21, 2023.
- Commitment to serving local small businesses in all markets.
- Expanded tax-equivalent net interest margin during the fourth quarter.
Challenges Ahead
- Repositioning of the investment securities portfolio resulted in losses of $2.88 million.
- Charitable contribution of $1 million was made to the 1st Source Foundation.
- Noninterest income decreased $3.20 million, or 13.76% from the fourth quarter a year ago.
- Net interest margin decreased of 18 basis points from the fourth quarter of 2022.
- Fourth quarter net income was $28.43 million, a decrease of 8.49% compared to $31.07 million earned in the fourth quarter of 2022.