1st Source Corp (SRCE) Reports Record Q3 2023 Earnings and Increased Cash Dividend
1st Source Corp (NASDAQ:SRCE) reported a record net income of $32.94 million for Q3 2023, marking a 0.62% increase from Q3 2022.
The company's cash dividend per common share was approved at $0.34, up 6.25% from the cash dividend declared a year ago.
Average loans and leases grew by $104.73 million in Q3 2023, up 1.71% from the previous quarter and $618.17 million, up 10.98% from Q3 2022.
The company repurchased 260,887 shares for treasury at a total cost of $10.29 million in the quarter.
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1st Source Corp (NASDAQ:SRCE), the parent company of 1st Source Bank, announced its Q3 2023 earnings on October 19, 2023. The company reported a record net income of $32.94 million for the quarter, marking a 0.62% increase from the $32.74 million reported in Q3 2022. This brings the 2023 year-to-date net income to $96.50 million, compared to $89.44 million in 2022.
Financial Performance
The company's diluted net income per common share for Q3 2023 was $1.32, equal to the third quarter of 2022. The 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.
Loans and Leases
1st Source Corp (NASDAQ:SRCE) reported that average loans and leases grew by $104.73 million in Q3 2023, up 1.71% from the previous quarter and $618.17 million, up 10.98% from Q3 2022. Year-to-date average loans and leases increased $667.45 million to $6.14 billion, up 12.19% from the first nine months of 2022.
Share Repurchase
The company repurchased 260,887 shares for treasury at a total cost of $10.29 million in the quarter. The company has a long history of maintaining conservative capital levels and the risk-based capital ratios remained strong during the third quarter.
Company's Outlook
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."
He further added, "Another exciting event in the third quarter was the launch of the Federal Reserves 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 article first appeared on GuruFocus.
