Regional lender 1st Source's Q3 net income rises on higher NII

1st Source

23/10/2025 21:15

Overview

1st Source Q3 net income rises, driven by higher net interest income

Diluted EPS for Q3 increases 21% yr/yr, reflecting strong financial performance

Company raises quarterly dividend by 11% to $0.40 per share

Outlook

Company did not provide specific guidance for future quarters or the full year in press release.

Result Drivers

NET INTEREST INCOME - Higher rates on increased average loan and lease balances and lower short-term borrowing costs drove net interest income growth

CREDIT LOSSES - Provision for credit losses decreased significantly, contributing to improved financial results

INVESTMENT LOSSES - Realized losses from strategic repositioning trades in the investment portfolio negatively impacted noninterest income

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
$1.71
Q3 Net Income
$42.27 mln
Q3 Net Interest Income
$88.75 mln
Q3 Investments
$1.47 bln


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 $69.00, about 13.6% above its October 21 closing price of $59.65

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nNFC3TmkP0

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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.)