- 1st Source Corporation (SRCE, Financial) reports a record Q1 2025 net income of $37.52 million, a 27.38% year-over-year increase.
- Quarterly cash dividend rises by 11.76% to $0.38 per share.
- Net interest margin increases to 3.90%, up 36 basis points from the previous year.
1st Source Corporation (NASDAQ: SRCE) has announced record-breaking first-quarter results for 2025, showing significant financial growth. The net income for the first quarter was $37.52 million, reflecting a 19.35% increase from the previous quarter and a 27.38% rise compared to the same quarter in 2024. The diluted earnings per share have surged to $1.52, marking a 27.73% increase from Q1 2024.
The company has shown a robust performance in its key metrics, with a return on average assets of 1.72% and a return on equity of 13.33%. In addition, 1st Source's tax-equivalent net interest margin improved to 3.90%, up 12 basis points from the prior quarter, marking the fifth consecutive quarter of margin expansion despite competitive deposit rates.
1st Source's loan portfolio has seen growth, with average loans increasing by $122.53 million (1.84%) quarter-over-quarter. Deposits also rose, with an increase of $187.39 million (2.62%) over the previous quarter. The company's Board of Directors has approved a quarterly cash dividend of $0.38 per share, an 11.76% increase from the previous year, underlining their confidence in sustained profitability.
While the nonperforming assets ratio rose to 0.63%, the bank reported minimal net charge-offs of $0.18 million, maintaining a conservative loan loss allowance at 2.29% of total loans. Capital ratios have improved, with a Common Equity Tier 1 ratio at a solid 14.71%, providing a substantial buffer against economic uncertainties.
1st Source continues to make strides in industry recognition, being ranked 26th on Forbes' America's Best Banks list and 25th among S&P's Top 50 Community Banks. The company's consistent performance and strategic positioning are further evidenced by its recognition as Forbes' Best Midsize Employers for the fourth consecutive year.
