1st Source (SRCE) Q4 2024 earnings summary

Executive summary

• Achieved record annual net income of $132.62 million for 2024, up 6.16% year-over-year; Q4 net income was $31.44 million, down 10.02% sequentially but up 10.58% year-over-year.

• Diluted EPS reached a record $5.36 for 2024, up 6.56% from 2023; Q4 EPS was $1.27, down 9.93% sequentially, up 10.43% year-over-year.

• Board approved a $0.36 per share cash dividend, up 5.88% from a year ago, marking the 37th consecutive year of dividend growth.

• Net interest margin expanded to 3.64% for 2024, up 13 bps year-over-year; Q4 margin was 3.78%, up 14 bps sequentially and 27 bps year-over-year.

• Loans and leases grew 5.16% to $6.85 billion; deposits (net of brokered) rose 5.06% to $6.73 billion at year-end.

Financial highlights

• Net interest income (tax-equivalent) for 2024 was $301.40 million, up 7.88% year-over-year; Q4 was $79.52 million, up 11.22% year-over-year and 5.14% sequentially.

• Noninterest income for 2024 was $86.31 million, down 4.76% year-over-year, impacted by lower equipment rental income and $3.9 million in securities losses.

• Noninterest expense for 2024 was $203.60 million, up 2.23% year-over-year, mainly due to higher salaries, incentives, and technology costs.

• Return on average assets for 2024 was 1.52% (up from 1.48%); return on average common equity was 12.54% (down from 13.48%).

• Efficiency ratio (adjusted) improved to 51.90% for 2024 from 53.49% in 2023.

Outlook and guidance

• Management remains focused on disciplined loan and lease pricing and expects continued margin expansion despite deposit pricing competition.

• Forward-looking statements caution about risks from economic, regulatory, and industry changes.

• No specific quantitative guidance provided for 2025.