Market Overview - Wall Street is currently in a risk-off mode as investors are selling off various assets, including Bitcoin, Constellation Energy, and Tesla, in anticipation of Nvidia's earnings release [1] - This selloff is affecting major momentum stocks and is contributing to a cooling of an overheated market [1] Investment Opportunities - Despite the market downturn, there are still strong stocks available that are trading near their highs, indicating potential investment opportunities [2] - Zacks Rank 1 (Strong Buy) stocks have historically outperformed the market, making them a focus for investors [3] Screening Criteria - The screening process for identifying Zacks Rank 1 stocks includes three main parameters: 1. Zacks Rank equal to 1, which has an average annual return of approximately 24.4% since 1988 [5] 2. Positive percentage change in Q1 earnings estimates over the last four weeks [6] 3. Top 5 stocks with the best average broker rating changes over the last four weeks [7] Featured Stock: 1st Source (SRCE) - 1st Source is highlighted as a strong investment opportunity, being the largest locally controlled financial institution in its region [7] - The company has consistently topped EPS estimates for six consecutive quarters, with FY25 EPS estimates increasing by 8% in the last month and FY26 estimates rising by 10% [8] - 1st Source has achieved record net income for four consecutive years and has expanded its dividend for 37 years [9] - Projected EPS growth for 2025 is 6%, with sales expansion of 7%, and for 2026, EPS growth is projected at 3% with sales expansion of 3% [9] - Over the past decade, SRCE stock has increased by 130%, outperforming the Finance sector's 85% growth [10] - Despite its strong performance, SRCE trades at a 43% discount to its highs and 35% below its sector average, with a forward P/E ratio of 11X [13]

Company Overview - 1st Source (SRCE) is headquartered in South Bend and has experienced a price change of 14.44% this year [3] - The company currently pays a dividend of $0.36 per share, resulting in a dividend yield of 2.16%, which is lower than the Banks - Midwest industry's yield of 2.9% and the S&P 500's yield of 1.54% [3] Dividend Performance - The annualized dividend of 1st Source is $1.44, reflecting a 2.9% increase from the previous year [4] - Over the past five years, the company has increased its dividend four times, achieving an average annual increase of 5.14% [4] - The current payout ratio is 26%, indicating that the company paid out 26% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for 1st Source's earnings per share for 2025 is $5.82, representing a year-over-year growth rate of 6.01% [5] Investment Appeal - 1st Source is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [7]

Core Viewpoint - 1st Source Bank has joined the U.S. Faster Payments Council (FPC) to enhance its leadership in the instant payment sector and contribute to the development of the U.S. national payment system [1][3]. Company Overview - 1st Source Corporation, the parent company of 1st Source Bank, has total assets of $8.9 billion and is the largest locally controlled financial institution in the northern Indiana-southwestern Michigan area [4]. - The corporation operates 77 banking centers, 18 specialty finance group locations, nine trust and wealth advisory services locations, 10 insurance offices, and three loan production offices [4]. Industry Participation - The FPC is an industry-led organization aimed at improving the safety, security, and adoption of faster payments in the U.S. [1]. - 1st Source Bank was an early adopter of the FedNow Service, which allows for instant payment services, and has been utilizing the Real-time Payments (RTP®) platform since March 2023 [2]. Leadership and Commitment - The leadership of 1st Source Bank emphasizes its commitment to innovation and collaboration in the instant payment space, aligning with the FPC's mission [3]. - The bank's participation in the FPC is expected to provide valuable insights and enhance its position in the evolving landscape of faster payment technologies [2][3].

Company Overview - 1st Source (SRCE) is based in South Bend and operates in the Finance sector, with a year-to-date share price change of 5.88% [3] - The company currently pays a dividend of $0.36 per share, resulting in a dividend yield of 2.33%, which is lower than the Banks - Midwest industry's yield of 2.82% and higher than the S&P 500's yield of 1.48% [3] Dividend Performance - The current annualized dividend of 1st Source is $1.44, reflecting a 2.9% increase from the previous year [4] - Over the past five years, the company has increased its dividend four times, achieving an average annual increase of 5.14% [4] - The company's payout ratio stands at 26%, indicating that it distributes 26% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - Earnings growth for 1st Source appears solid, with the Zacks Consensus Estimate for 2025 projected at $5.82 per share, representing a year-over-year growth rate of 6.01% [5] Investment Appeal - Dividends are favored by investors as they enhance stock investing profits, reduce overall portfolio risk, and offer tax advantages [6] - 1st Source is characterized as an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 1 (Strong Buy) [7]

分组1 - 1st Source reported quarterly earnings of $1.40 per share, exceeding the Zacks Consensus Estimate of $1.36 per share, and up from $1.16 per share a year ago, representing an earnings surprise of 2.94% [1] - The company posted revenues of $101.74 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.35%, compared to $91.41 million in the same quarter last year [2] - 1st Source has consistently surpassed consensus EPS estimates over the last four quarters, indicating strong performance [2] 分组2 - The stock has underperformed the market, losing about 1.9% since the beginning of the year, while the S&P 500 gained 3.5% [3] - The current consensus EPS estimate for the upcoming quarter is $1.23 on revenues of $95.9 million, and for the current fiscal year, it is $5.40 on revenues of $392.1 million [7] - The Zacks Industry Rank for Banks - Midwest is in the top 12% of over 250 Zacks industries, suggesting a favorable outlook for the sector [8]

Financial Performance - Record net income of $132.62 million for 2024, up 6.16% from $124.93 million in 2023[2] - Fourth quarter net income was $31.44 million, an increase of 10.58% compared to $28.43 million in Q4 2023[2] - Diluted net income per common share for 2024 was $5.36, up 6.56% from $5.03 in 2023[4] - Net income available to common shareholders for the twelve months ended December 31, 2024, was $132,623 thousand, representing an increase of 6.0% from $124,927 thousand in 2023[36] - Net income available to common shareholders for the three months ended December 31, 2024, was $31,438,000, compared to $28,429,000 in 2023, marking an increase of 10.6%[41] Asset and Liability Growth - Total assets increased to $8,931,938 thousand as of December 31, 2024, compared to $8,727,958 thousand a year earlier, reflecting a growth of 2.3%[36] - Total assets as of December 31, 2024, were $8,824,464,000, an increase from $8,553,500,000 in 2023, reflecting a growth of 3.2%[42] - Total assets increased to $8,739,539,000 as of December 31, 2024, compared to $8,414,797,000 in 2023, reflecting a growth of 3.86%[44] - Total liabilities rose to $7,750,432 thousand, an increase of 1.2% from $7,659,695 thousand in the previous year[40] Loan and Deposit Metrics - End of period loans and leases reached $6.85 billion, up $336.30 million or 5.16% from $6.52 billion in 2023[4] - Average loans and leases for 2024 were $6.60 billion, an increase of $394.47 million or 6.36% from 2023[9] - End of period deposits net of brokered deposits were $6.73 billion, up $324.14 million or 5.06% from $6.41 billion in 2023[4] - Average deposits for 2024 were $7.12 billion, an increase of $161.71 million or 2.32% from 2023[10] - Total deposits reached $7,230,035 thousand, reflecting a 2.7% increase from $7,038,581 thousand year-over-year[40] Income and Expense Analysis - Noninterest income for 2024 was $86.31 million, down $4.32 million or 4.76% compared to 2023[14] - Noninterest income decreased to $18,482 thousand in Q4 2024 from $20,076 thousand in Q4 2023, a decline of 7.9%[36] - Total noninterest expense for the twelve months ended December 31, 2024, was $203,601,000, compared to $199,158,000 in 2023, showing an increase of 2.2%[41] - The company reported a total noninterest income of $86,307,000 for the twelve months ended December 31, 2024, compared to $90,623,000 in 2023[46] Efficiency and Profitability Ratios - The efficiency ratio for Q4 2024 was 55.40%, compared to 57.77% in Q4 2023, indicating improved operational efficiency[36] - The efficiency ratio (GAAP-derived) for the twelve months ended December 31, 2024, was 52.59%, slightly improved from 53.93% in 2023[46] - Return on average assets for Q4 2024 was 1.42%, down from 1.59% in the previous quarter[36] - Common equity-to-assets ratio (GAAP-derived) stood at 12.44% as of December 31, 2024, compared to 11.34% in 2023[46] Asset Quality and Risk Management - The allowance for loan and lease losses was 2.27% of total loans and leases as of December 31, 2024[20] - Nonperforming assets to loans and leases ratio was 0.46% as of December 31, 2024, compared to 0.37% a year earlier, indicating a slight deterioration in asset quality[36] - The allowance for loan and lease losses was $155,540 thousand, slightly higher than $147,552 thousand a year earlier, indicating a proactive approach to risk management[40] - The provision for credit losses for loans and leases for the three months ended December 31, 2024, was $3,904,000, up from $1,911,000 in 2023, representing a significant increase of 104.5%[41] Shareholder Returns - Common cash dividends declared remained stable at $0.36 per share for both Q4 2024 and Q3 2024[36] - Book value per common share (GAAP-derived) increased to $45.31 as of December 31, 2024, from $40.50 in 2023[46]

Financial Performance - 1st Source Corporation reported record net income of $132.62 million for 2024, a 6.16% increase from $124.93 million in 2023 [2][5] - Fourth quarter net income was $31.44 million, up 10.58% from $28.43 million in the same quarter of 2023 [2][5] - Diluted net income per common share reached a record $5.36 for 2024, up 6.56% from $5.03 in 2023, while for the fourth quarter, it was $1.27, up 10.43% from $1.15 a year earlier [2][5] Return on Assets and Equity - Return on average assets increased to 1.52% for 2024 from 1.48% in 2023, while return on average common shareholders' equity decreased to 12.54% from 13.48% [3][5] - For the fourth quarter, return on average assets was 1.42%, up from 1.32% in the previous year, and return on average common shareholders' equity decreased to 11.21% from 11.87% [3][5] Dividends - The Board of Directors approved a cash dividend of $0.36 per common share, a 5.88% increase from $0.34 declared a year ago [4][5] Loans and Deposits - End of period loans and leases were $6.85 billion at December 31, 2024, up 5.16% from $6.52 billion a year earlier [5] - End of period deposits net of brokered deposits were $6.73 billion, an increase of 5.06% from $6.41 billion at the end of 2023 [5] Net Interest Income and Margin - Tax-equivalent net interest income for 2024 was $301.40 million, a 7.88% increase from 2023 [12] - The tax-equivalent net interest margin was 3.64% for 2024, up 13 basis points from 3.51% in 2023 [13][14] Noninterest Income and Expenses - Noninterest income for 2024 was $86.31 million, down 4.76% from the previous year [15] - Noninterest expense for 2024 was $203.60 million, an increase of 2.23% compared to 2023 [18][19] Credit Quality - The allowance for loan and lease losses was 2.27% of total loans and leases as of December 31, 2024 [21] - Net charge-offs for 2024 were $5.68 million, compared to net recoveries of $2.42 million in 2023 [22] Capital Ratios - As of December 31, 2024, the common equity-to-assets ratio was 12.44%, and the Common Equity Tier 1 ratio was 14.21% [24]

1st Source (SRCE) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since a changi ...

1st Source (SRCE) came out with quarterly earnings of $1.41 per share, beating the Zacks Consensus Estimate of $1.36 per share. This compares to earnings of $1.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 3.68%. A quarter ago, it was expected that this holding company for 1st Source Bank would post earnings of $1.25 per share when it actually produced earnings of $1.49, delivering a surprise of 19.20%.Over the last four ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-6233 1st Source Corporation (Exact name of registrant as specified in its charter) Indiana 35-1068133 (State ...