Record Q1 Net Income for 1st Source, Dividend Raised 7.5%
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1st Source Corporation reported record first-quarter net income of $39.96 million, a 6.49% increase year-over-year, with diluted EPS rising 7.24% to $1.63. The company's board also approved a three-cent increase in the quarterly cash dividend, raising it to $0.43 per share, a 7.5% hike from the prior quarter. This announcement, which precedes an 8-K filing made shortly after, highlights strong top-line performance and a commitment to shareholder returns, further supported by $23.35 million in share repurchases during the quarter. However, the report also revealed a significant increase in the provision for credit losses to $7.27 million, up from $0.71 million in the previous quarter, and a rise in the allowance for loan and lease losses, which could signal potential credit quality concerns. Investors will closely monitor future trends in credit quality and the impact of these increased provisions on profitability, especially given the reported decrease in average deposits.
At the time of this announcement, SRCE was trading at $73.20 on NASDAQ in the Finance sector, with a market capitalization of approximately $1.8B. The 52-week trading range was $54.76 to $75.64. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: TMX Newsfile.