1st Source Q2 net interest income up driven by higher loan and deposit balances

1st Source

23/07/2026 21:16

    

    Overview
  
U.S. regional bank's Q2 net income and EPS rose over 25% yr/yr to record levels
Net interest income for Q2 increased 9% yr/yr, supported by higher loan and deposit balances
Company approved a quarterly dividend increase to $0.45 per share, up 18% from a year ago

    

    Outlook
  
Company did not provide specific guidance or outlook for future quarters or full year

    

    Result Drivers
  
LOAN AND DEPOSIT GROWTH - Average loans and leases grew 1.71% and average deposits rose 3.28% from the previous qtr, mainly in commercial and agricultural, renewable energy, construction equipment, and commercial real estate portfolios
CREDIT QUALITY IMPROVEMENT - Provision for credit losses fell sharply due to fewer special attention loans, reduced net charge-offs, and lower nonperforming assets
NONINTEREST INCOME - Noninterest income increased 8.8% from the previous qtr, mainly from higher trust and wealth advisory income, seasonal tax fees, and increased debit card and brokerage income

    
Company press release: ID:nNFC1nBSK9

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 EPS
 
$1.95
 
Q2 Net Income
 
$47.54 mln
 
Q2 Net Interest Income
 
$93.14 mln
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for 1st Source Corp is $79.00, about 4.6% below its July 22 closing price of $82.84
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago

    

    Reuters Recommended Reads
  
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July 23 - Civista Bancshares Q2 profit rises 30%, interest margin expands

    
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)