Overview

• US regional bank's Q1 net income rose 6.49% yr/yr, EPS up 7.24% from prior year

• Net interest income for Q1 increased 11.36% yr/yr, driven by higher loan balances and yields

• Company raised quarterly dividend by 13.16%, and repurchased 338,356 shares for $23.35 mln

Outlook

• Company says it will continue to focus on safety and soundness amid economic uncertainty

Result Drivers

• NET INTEREST INCOME DRIVERS - Higher average loan and lease balances, improved investment yields from portfolio repositioning, and lower deposit costs boosted net interest income yr/yr

• CREDIT COSTS - Provision for credit losses rose due to higher net charge-offs, mainly from two auto and light truck accounts serving the film industry

• DEPOSIT DECLINE - Average deposits fell due to lower brokered deposits, seasonal outflows of public fund deposits, and decreased noninterest-bearing demand deposits

Company press release: ID:nNFCwBc6g

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 EPS		$1.63
Q1 Net Income		$39.96 mln
Q1 Net Interest Income		$90.14 mln

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 is $74.00, about 1.1% above its April 22 closing price of $73.20

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

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