Download PDF

1. Company Snapshot

1.a. Company Description

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients.Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards.The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services.


In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations.Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment.Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services.


As of December 31, 2021, the company operated through 79 banking centers in 18 counties in Indiana and Michigan, as well as Sarasota County in Florida.1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.

Show Full description

1.b. Last Insights on SRCE

Here is a 90-word analysis of the positive drivers behind 1st Source Corporation's recent performance: Strong Q4 earnings, beating estimates with $1.40 per share, driven by record annual earnings and a history of increased dividends. The company's dividend payout continues to attract investors, with a yield of 3.1%. 1st Source Bank's ranking as one of America's Best Banks by Forbes and its membership in the U.S. Faster Payments Council demonstrate its commitment to growth and innovation. The company's undervalued PEGY ratio and projected 55% 12-month upside potential make it an attractive choice for investors seeking dividend aristocrats.

1.c. Company Highlights

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Card image cap

American Century Companies Inc. Acquires 70,961 Shares of 1st Source Corporation $SRCE

Dec -03

Source: defenseworld.net

Card image cap

Bank of New York Mellon Corp Acquires 1,658 Shares of 1st Source Corporation $SRCE

Nov -21

Source: defenseworld.net

Card image cap

1st Source Bank Announces Promotion of Two Senior Leaders

Nov -20

Source: newsfilecorp.com

Card image cap

1st Source Corporation $SRCE Shares Sold by Acadian Asset Management LLC

Nov -14

Source: defenseworld.net

Card image cap

1st Source (SRCE) Beats Q3 Earnings and Revenue Estimates

Oct -23

Source: zacks.com

Card image cap

1st Source Corporation Reports Record Third Quarter Results, Increased Cash Dividend Declared

Oct -23

Source: newsfilecorp.com

Card image cap

Best Value Stock to Buy for September 25th

Sep -25

Source: zacks.com

Card image cap

Best Value Stocks to Buy for September 10th

Sep -10

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Commercial Banking

Expected Growth: 3.0%

Strong loan growth driven by commercial and industrial lending, increased commercial real estate lending, and expansion of treasury management services. Additionally, strategic acquisitions and investments in digital banking capabilities have enhanced customer experience, contributing to the 3.0% growth of Commercial Banking at 1st Source Corporation.

7. Detailed Products

Consumer Banking

Provides personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

Offers financial solutions for businesses, including commercial loans, cash management, and treasury management services.

Wealth Advisory Services

Provides investment management, trust services, and financial planning for individuals, families, and institutions.

Mortgage Banking

Originates and services residential mortgage loans, offering a range of mortgage products and services.

Insurance

Offers a range of insurance products, including life insurance, long-term care insurance, and annuities.

Treasury Management Services

Provides cash management and treasury management services for businesses, including account management and payment processing.

8. 1st Source Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for 1st Source Corporation is moderate due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

The bargaining power of customers is low for 1st Source Corporation as customers have limited negotiating power due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for 1st Source Corporation as the company relies on a diverse range of suppliers, but some suppliers may have significant bargaining power due to their size and market presence.

Threat Of New Entrants

The threat of new entrants is low for 1st Source Corporation due to the high barriers to entry in the banking industry, including regulatory hurdles and significant capital requirements.

Intensity Of Rivalry

The intensity of rivalry is high for 1st Source Corporation due to the competitive nature of the banking industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.75%
Debt Cost 4.62%
Equity Weight 70.25%
Equity Cost 7.88%
WACC 6.91%
Leverage 42.35%

11. Quality Control: 1st Source Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Republic Bancorp

A-Score: 7.0/10

Value: 6.4

Growth: 7.0

Quality: 7.9

Yield: 6.0

Momentum: 6.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Bank7

A-Score: 6.8/10

Value: 6.7

Growth: 8.7

Quality: 6.2

Yield: 5.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
1st Source

A-Score: 6.4/10

Value: 6.6

Growth: 6.3

Quality: 7.1

Yield: 5.0

Momentum: 5.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
NBH

A-Score: 6.1/10

Value: 6.6

Growth: 6.9

Quality: 6.1

Yield: 6.0

Momentum: 3.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
MetroCity Bankshares

A-Score: 5.9/10

Value: 4.5

Growth: 7.1

Quality: 6.8

Yield: 6.0

Momentum: 3.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Sierra Bank

A-Score: 5.9/10

Value: 4.4

Growth: 6.2

Quality: 6.2

Yield: 7.0

Momentum: 5.0

Volatility: 6.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

63.67$

Current Price

63.67$

Potential

-0.00%

Expected Cash-Flows