SOUTH BEND, Indiana - 1st Source Corporation (NASDAQ: SRCE), the parent company of 1st Source Bank, has reported a substantial increase in its net income for the second quarter of 2024. The company announced a net income of $36.79 million, a 13.44% rise from the same period last year. This increase is even more significant when compared to the first quarter of 2024, marking a 24.91% growth.
Average loans and leases saw an increase of $102.14 million, or 1.57%, from the previous quarter, and deposits grew by $172.57 million, or 2.46%. This growth in loans and deposits contributed to a year-over-year increase of 7.57% and 3.52%, respectively. The company's board approved a cash dividend increase to $0.36 per common share for the quarter, up by 12.50% from the previous year.
The bank's net interest income also saw a healthy increase, reaching $74.19 million, which is 2.96% higher than the first quarter of 2024 and 8.00% higher compared to the second quarter of the previous year. Net interest margin improved by five basis points from the previous quarter to 3.59%, indicating a stronger earning potential on interest-earning assets.
Furthermore, 1st Source recorded net recoveries of $1.99 million, a reversal from the net charge-offs of $6.12 million in the previous quarter. The allowance for loan and lease losses remained solid and unchanged from the previous quarter at 2.26%.
The company's capital position remains robust, with a common equity-to-assets ratio of 11.75% and a tangible common equity-to-tangible assets ratio of 10.91% as of June 30, 2024. No shares were repurchased for treasury during the second quarter.
1st Source Corporation has also been recognized by Forbes as one of America's Best Banks, ranking #14 on the list. Additionally, it was named to the Forbes' Best in State Banks and Best Employers for New Grads lists. US News & World Report also recognized 1st Source Bank as a "Best Company to Work For" in the Midwest.
This financial update is based on a press release statement from 1st Source Corporation.
InvestingPro Insights
1st Source Corporation (NASDAQ: SRCE) has demonstrated a robust financial performance in the second quarter of 2024, with notable increases in net income and dividends. Delving into the details provided by InvestingPro, the company's commitment to shareholder returns is evident, as it has raised its dividend for an impressive 31 consecutive years, showcasing a reliable track record for income-focused investors.
The bank's strategic financial management is further highlighted by its Price/Earnings (P/E) Ratio, which stands at a calculated 12.62, suggesting that the company's earnings are being valued at a reasonable level by the market. Additionally, the P/E Ratio (Adjusted) for the last twelve months as of Q1 2024 is 12.55, reinforcing the consistency in the company's valuation.
Investors seeking growth will find the 1st Source Corporation's Revenue Growth over the last twelve months as of Q1 2024 to be a positive sign, with a 2.92% increase. This growth, coupled with a solid dividend yield of 2.23%, positions the company as a potentially attractive option for those looking to balance income and growth in their portfolios.
For those considering deeper analysis or contemplating an investment in 1st Source Corporation, there are additional InvestingPro Tips available that could provide further insights into the company's prospects. For instance, three analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's future earnings potential. Moreover, the company's shares are trading near their 52-week high, reflecting strong market confidence.
To explore these insights and more, investors are encouraged to visit the dedicated page for 1st Source Corporation on InvestingPro. For a more comprehensive analysis, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, which includes a total of 9 InvestingPro Tips to aid in making informed investment decisions.
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