1st Source (SRCE) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $34.94 million, up 6.07% year-over-year, and $101.19 million for the nine months, both higher than 2023.

• Diluted EPS for Q3 2024 was $1.41, up 6.82% year-over-year, and $4.09 for the nine months, both above prior year.

• Total assets reached $8.76 billion at September 30, 2024, up 0.41% from year-end 2023.

• Board approved a $0.36 per share cash dividend, up 12.5% from a year ago.

• 1st Source Bank received industry accolades, including Forbes' Best-in-State Employers and Piper Sandler Sm-All Stars.

Financial highlights

• Net interest income for Q3 2024 was $75.49 million, up 8.97% year-over-year; net interest margin (FTE) rose to 3.64%.

• For the nine months, net interest income was $221.45 million, up 6.8% year-over-year; net interest margin (FTE) improved to 3.59%.

• Provision for credit losses increased to $3.11 million for Q3, up from $859,000 a year ago, reflecting higher reserves and special attention outstandings.

• Noninterest income for Q3 was $22.45 million, down 8.2% year-over-year, mainly due to lower equipment rental and other income.

• Noninterest expense for Q3 was $49.44 million, down 1.4% year-over-year, with lower other expenses and depreciation on leased equipment.

Outlook and guidance

• Management expects continued margin expansion but remains cautious due to fragile domestic growth, inflation, and geopolitical instability.

• The forecast anticipates tepid economic growth, persistent inflation, and continued credit market tightening.

• Forward-looking statements caution about risks from interest rate changes, economic downturns, and regulatory shifts.