Overview

* 1st Source ( SRCE ) Q3 net income rises, driven by higher net interest income

* Diluted EPS for Q3 increases 21% yr/yr, reflecting strong financial performance

* Company raises quarterly dividend by 11% to $0.40 per share

Outlook

* Company did not provide specific guidance for future quarters or the full year in press release.

Result Drivers

* NET INTEREST INCOME - Higher rates on increased average loan and lease balances and lower short-term borrowing costs drove net interest income growth

* CREDIT LOSSES - Provision for credit losses decreased significantly, contributing to improved financial results

* INVESTMENT LOSSES - Realized losses from strategic repositioning trades in the investment portfolio negatively impacted noninterest income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS $1.71

Q3 Net $42.27

Income mln

Q3 Net $88.75

Interest mln

Income

Q3 $1.47

Investme bln

nts

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the banks peer group is "buy."

* Wall Street's median 12-month price target for 1st Source Corp ( SRCE ) is $69.00, about 13.6% above its October 21 closing price of $59.65

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)