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Investor Relations · Oct 19th, 2023
QUARTERLY HIGHLIGHTS
- Net income was a record $32.94 million for the quarter, up $0.20 million or 62% from the third quarter of 2022. Diluted net income per common share was $1.32, equal to the prior year’s third quarter.
- Cash dividend of $0.34 per common share was approved, up 6.25% from the cash dividend declared a year ago.
- Average loans and leases grew $104.73 million in the third quarter, up 1.71% (6.84% annualized growth) from the previous quarter and $618.17 million, up 10.98% from the third quarter of 2022.
- Repurchased 260,887 shares for treasury at a total cost of $10.29 million in the quarter.
- During the quarter, a gain on sale of renewable energy tax equity investments of $2.32 million was recognized.
South Bend, IN – 1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported record quarterly net income of $32.94 million for the third quarter of 2023, up 0.62% from the $32.74 million reported in the third quarter a year ago, bringing the 2023 year-to-date net income to $96.50 million compared to $89.44 million in 2022. Diluted net income per common share for the third quarter of 2023 was $1.32, equal to the third quarter of 2022. Diluted net income per common share for the first nine months of 2023 was $3.87 compared to $3.59 during the first nine months of 2022.
At its October 2023 meeting, the Board of Directors approved a cash dividend of $0.34 per common share, up 6.25% from the cash dividend declared a year ago. The cash dividend is payable to shareholders of record on November 6, 2023, and will be paid on November 15, 2023.
Christopher J. Murphy III, Chairman and Chief Executive Officer, commented, “We are pleased that we achieved record quarterly net income during the third quarter. Average loans grew $104.73 million, up 1.71% while average deposits increased marginally from the previous quarter. Credit quality improved and remained strong and our trend of low nonperforming asset levels continued. Our liquidity and capital positions also remained strong during the quarter. While our tax-equivalent net interest margin continued to endure competitive deposit rate pressures, we limited overall margin compression to two basis points compared to the prior quarter.
“We were incredibly pleased to learn that 1st Source was included in the Newsweek ‘America’s Greatest Workplaces for Parents and Families 2023’ ranking. According to Newsweek, over 224,000 completed company reviews by employees who work for companies employing at least 1,000 employees in the U.S. determined the results of the list. 1st Source is one of only 10 companies headquartered in Indiana to make the list and received a four-star rating (out of five stars). Newsweek conducted the survey in partnership with Plant-A Insights Group and shared that the ‘800 family-friendly companies’ included in the list ‘are lauded by their employees for being great places to work.’ This honor speaks directly to our family values and client centric mission. We deliver a balance between work and family that is fulfilling for our colleagues. We’re humbled by the response of our team members to name us to such lists, and we thank them for honoring us and our clients with the great work and passion they bring to this Company.
“Another exciting event in the third quarter was the launch of the Federal Reserve’s new instant payment rail, the FedNow Service. 1st Source Bank was among the first depository institutions able to send and receive instant payments from other participating institutions. This was an important milestone for the banking industry, and it was very important that 1st Source be positioned as a leader in adopting this new instant payment method for the benefit of our business and personal clients. To participate in the FedNow Service, 1st Source completed a multi-step customer testing and certification program in the months leading up to launch. Early adopters of the service include a diverse range of financial institutions and service providers across the U.S., and we’re very proud to be among its earliest users and advocates,” Mr. Murphy concludes.