1st Source Corporation reported its financial results for the third quarter and the first nine months of 2024, highlighting notable changes in revenue, profitability, and strategic developments compared to the previous fiscal period.
As of September 30, 2024, total assets increased to $8.76 billion, up $35.99 million (0.41%) from $8.73 billion at the end of 2023. Total loans and leases rose to $6.62 billion, reflecting a $97.60 million (1.50%) increase, driven by growth in renewable energy, construction equipment, commercial real estate, and residential real estate portfolios. Total deposits also saw an increase, reaching $7.13 billion, up $87.36 million (1.24%).
Interest income for the third quarter of 2024 was $123.23 million, an increase from $107.33 million in the same period of 2023. For the nine months ended September 30, 2024, interest income totaled $360.87 million, compared to $302.34 million in 2023. However, total interest expense also increased, reaching $47.74 million for the third quarter and $139.42 million for the nine months, compared to $38.09 million and $95.02 million, respectively, in the prior year. This resulted in net interest income of $75.49 million for the third quarter, up from $69.24 million, and $221.45 million for the nine months, compared to $207.32 million in 2023.
Net income for the third quarter of 2024 was $34.91 million, an increase from $32.94 million in the same quarter of 2023. For the nine months, net income rose to $101.18 million from $96.52 million. The diluted earnings per share for the third quarter increased to $1.41 from $1.32 in the prior year.
The company’s total shareholders’ equity increased significantly to $1.10 billion, up $114.69 million (11.59%) from $989.57 million at the end of 2023. The shareholders’ equity-to-assets ratio improved to 12.60% from 11.34%.
In terms of credit quality, the allowance for loan and lease losses increased to $152.32 million, reflecting higher special attention outstandings and modest net credit losses. Nonperforming assets rose to $30.89 million, a 27.45% increase from $24.24 million at the end of 2023, attributed to higher nonaccrual loans, particularly in the construction equipment portfolio.
The company also reported a decrease in noninterest income, totaling $22.45 million for the third quarter, down from $24.46 million in 2023, and $67.83 million for the nine months, compared to $70.55 million in the prior year. This decline was primarily due to decreased partnership investment gains and lower insurance commissions.
Overall, 1st Source Corporation demonstrated solid growth in interest income and net income, while facing challenges in noninterest income and credit quality.
About 1ST SOURCE CORP
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