1st Source Q3 net income rises on loan growth

1st Source

Thu 21:17

Overview
US regional bank reported Q3 net income up 17% yr/yr and 4% from prior qtr
Diluted EPS rose 19% yr/yr and 4% sequentially
Net interest income grew 8% yr/yr, driven by higher loan and lease balances

Outlook
Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers
LOAN AND LEASE GROWTH - Higher average loan and lease balances, along with improved investment yields and stable deposit costs, drove net interest income growth
SECURITIES REPOSITIONING - Realized losses from sale of low-yield securities, replaced with higher-yield investments, affected noninterest income
CREDIT QUALITY - Lower provision for credit losses and reduced nonperforming assets contributed to results

Company press release: ID:nNFCbCJG6G

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$2.03
 
Q3 Net Income
 
$49.54 mln
 
Q3 Net Interest Income
 
$95.59 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 Corporation is $87.00, about 1.4% above its October 21 closing price of $85.81
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin 
Oct 20 - KeyCorp Q3 revenue rises 8% to record, profit up 24%
Oct 22 - United Bankshares Q3 EPS beats estimates, helped by loan growth

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)