1st Source Q3 net income rises on loan growth

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:

Key Details

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.)