1st Source Corporation Reports Second Quarter Results, Cash Dividend Declared

Core Viewpoint 1st Source Corporation reported its second quarter results for 2025, showing a slight decline in net income compared to the previous quarter but an increase year-over-year. The company declared a cash dividend, reflecting its commitment to returning value to shareholders despite economic uncertainties. Financial Performance - The net income for the second quarter of 2025 was $37.32 million, down 0.54% from $37.52 million in the previous quarter, but up 1.43% from $36.79 million a year ago [2][4] - Diluted net income per common share was $1.51, a decrease of 0.66% from $1.52 in the previous quarter, and an increase of 1.34% from $1.49 in the second quarter of 2024 [2][4] - Year-to-date net income for 2025 reached $74.84 million, up 12.97% compared to $66.25 million during the first six months of 2024 [2] Dividend Declaration - The Board of Directors approved a cash dividend of $0.38 per common share, representing a 5.56% increase from the cash dividend declared a year ago [3] Interest Income and Margin - Tax-equivalent net interest income for the second quarter was $85.35 million, up 5.25% from the previous quarter and up 15.03% from the same quarter a year ago [13][14] - The net interest margin was 4.01%, an increase of 11 basis points from the previous quarter and 42 basis points from the same period in 2024 [14][15] Loan and Lease Growth - Average loans and leases increased by $169.51 million, or 2.49%, from the previous quarter, and by $362.25 million, or 5.48%, from the second quarter of 2024 [11] - The allowance for loan and lease losses was 2.30% of total loans and leases, consistent with historical levels [22] Noninterest Income and Expense - Noninterest income for the second quarter was $23.06 million, relatively flat compared to the previous quarter and the same quarter a year ago [16] - Noninterest expense decreased by 1.22% from the prior quarter to $52.43 million, but increased by 5.15% from the second quarter of 2024 [19][21] Credit Quality - The provision for credit losses was $7.69 million, an increase from $3.27 million in the previous quarter and a recovery of $0.31 million in the same quarter last year [23] - Nonperforming assets to loans and leases ratio was 1.06%, up from 0.63% in the previous quarter [6][23] Capital Position - The common equity-to-assets ratio was 13.19%, compared to 12.96% at the end of the previous quarter [24] - The company repurchased 47,428 shares during the second quarter, reducing common shareholders' equity by $2.84 million [25]