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 $79.00, about 4.6% below its July 22 closing price of $82.84
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago
Drivers behind the quarter
Loan and deposit growth - Average loans and leases grew 1.71% and average deposits rose 3.28% from the previous qtr, mainly in commercial and agricultural, renewable energy, construction equipment, and commercial real estate portfolios
Credit quality improvement - Provision for credit losses fell sharply due to fewer special attention loans, reduced net charge-offs, and lower nonperforming assets
Noninterest income - Noninterest income increased 8.8% from the previous qtr, mainly from higher trust and wealth advisory income, seasonal tax fees, and increased debit card and brokerage income
Quarterly results and dividend increase
U.S. regional bank's Q2 net income and EPS rose over 25% yr/yr to record levels
Net interest income for Q2 increased 9% yr/yr, supported by higher loan and deposit balances
Company approved a quarterly dividend increase to $0.45 per share, up 18% from a year ago
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