1st Source (SRCE) - 2025 Q1 - Quarterly Results

Financial Performance - Record quarterly net income of $37.52 million, up 19.35% from the previous quarter and up 27.38% year-over-year [2] - Diluted net income per common share was $1.52, reflecting a 19.69% increase from the previous quarter and a 27.73% increase from the same quarter last year [4] - Net income available to common shareholders for Q1 2025 was $37,520, a 27.4% increase from $29,455 in Q1 2024 [35] - Basic net income per common share increased to $1.52 in Q1 2025, up from $1.19 in Q1 2024, marking a growth of 27.8% [35] - Net income available to common shareholders reached $37,520 thousand for the first quarter of 2025, compared to $31,438 thousand in the previous quarter, representing a growth of 19.8% [38] Asset and Loan Growth - Average loans and leases grew by $122.53 million, or 1.84%, from the previous quarter, and increased by $294.88 million, or 4.53%, year-over-year [12] - Total loans and leases amounted to $6,863,393 thousand as of March 31, 2025, slightly up from $6,854,808 thousand at December 31, 2024, indicating a growth of 0.13% [37] - Total assets increased to $8,963,114 thousand as of March 31, 2025, compared to $8,931,938 thousand at December 31, 2024, reflecting a growth of 0.35% [37] - Total assets increased to $8,856,278 thousand as of March 31, 2025, compared to $8,824,464 thousand at December 31, 2024, reflecting a growth of 0.36% [39] Deposit Growth - Average deposits increased by $187.39 million, or 2.62%, from the previous quarter, and grew by $322.44 million, or 4.60%, compared to the same quarter last year [13] - Total deposits rose to $7,417,765 thousand as of March 31, 2025, compared to $7,230,035 thousand at December 31, 2024, reflecting an increase of 2.6% [37] Income and Revenue - Tax-equivalent net interest income was $81.09 million, up 1.97% from the previous quarter and up 12.52% year-over-year [14] - Net interest income for Q1 2025 was $80,938, up 12.5% from $71,915 in Q1 2024 [35] - Noninterest income for the first quarter was $23.10 million, up 25.00% from the previous quarter and up 4.27% year-over-year [16] - Noninterest income rose to $23,103 in Q1 2025, a 4.3% increase from $22,156 in Q1 2024 [35] - Noninterest income increased to $23,103 thousand for the first quarter of 2025, compared to $18,482 thousand in the previous quarter, a significant increase of 25.5% [38] Efficiency and Ratios - Common equity-to-assets ratio improved to 12.96%, compared to 12.44% at the end of the previous quarter and 11.65% a year ago [23] - The efficiency ratio improved to 51.01% in Q1 2025, down from 51.77% in Q1 2024, indicating better operational efficiency [35] - The efficiency ratio (GAAP-derived) improved to 51.01% for the first quarter of 2025, down from 55.40% in the previous quarter, indicating enhanced operational efficiency [41] Capital and Equity - Total equity at the end of Q1 2025 was $1,220,542, an increase from $1,081,549 in Q1 2024, reflecting a growth of 12.9% [35] - Total common shareholders' equity increased to $1,161,459 thousand as of March 31, 2025, compared to $1,111,068 thousand at December 31, 2024, reflecting a growth of 4.53% [41] - Book value per common share (GAAP-derived) rose to $47.29 as of March 31, 2025, up from $45.31 in the previous quarter, indicating an increase of 4.37% [41] Allowance and Asset Quality - The allowance for loan and lease losses increased to $157.47 million, or 2.29% of total loans and leases, reflecting increased economic uncertainty [21] - The allowance for loan and lease losses was $157,470 at the end of Q1 2025, compared to $148,024 in Q1 2024, indicating a proactive approach to asset quality [35] - Nonperforming assets increased to $43,072 in Q1 2025 from $22,431 in Q1 2024, highlighting potential challenges in asset quality [35] Operational Developments - The company opened a new banking center in Carmel, Indiana, expanding its market presence [10]