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Investing.com - DA Davidson raised its price target on 1st Source (NASDAQ:SRCE) to $67.00 from $65.00 on Tuesday, while maintaining a Neutral rating on the stock. The regional bank, with a market capitalization of $1.52 billion, currently trades at 10.83 times earnings and has posted a 7.36% gain year-to-date.
The adjustment follows 1st Source’s quarterly earnings report, which showed earnings per share of $1.51, exceeding both DA Davidson’s forecast of $1.49 and the consensus estimate of $1.47. The quarter included a $1.0 million securities loss, equivalent to $0.04 per share, from repositioning. According to InvestingPro, the company has maintained dividend payments for 51 consecutive years, with a current yield of 2.45%.
Core pre-provision net revenue increased by $5.85 million quarter-over-quarter to $56.82 million, surpassing DA Davidson’s forecast of $50.82 million. Net interest income rose by $4.25 million to $85.19 million, with net interest margin expanding by 11 basis points to 4.01%. InvestingPro analysis indicates the bank maintains a strong financial health score, with particularly robust profitability metrics.
The positive performance was partially offset by a $4.43 million increase in provision expense to $7.69 million. Non-performing assets increased by $32.4 million to $75.5 million during the quarter.
Despite the rise in non-performing assets, 1st Source added $5.8 million to reserves, maintaining strong coverage with an allowance for credit losses ratio at 2.30%.
In other recent news, 1st Source Corporation reported its financial results for the second quarter of 2025, revealing a net income of $37.32 million. This represents a 1.43% increase compared to the same period last year, although it marks a slight decrease of 0.54% from the previous quarter. The company’s diluted earnings per share reached $1.51, which is an improvement from $1.49 in the second quarter of 2024, despite being $0.01 lower than the first quarter of 2025. The earnings report included $1 million in pre-tax losses stemming from the sale of approximately $26 million in available-for-sale securities. These developments are part of the recent updates concerning the financial performance of 1st Source Corporation.
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