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1st Source

Nasdaq:SRCE
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SRCE
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Banks
Company description

1st Source Corporation operates as the holding company for 1st Source Bank that provides commercial and consumer banking services, trust and investment management services, and insurance to individual and business clients. The last earnings update was 32 days ago. More info.


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SRCE Share Price and Events
7 Day Returns
1.4%
NasdaqGS:SRCE
-3.2%
US Banks
-0.7%
US Market
1 Year Returns
-13.9%
NasdaqGS:SRCE
-10.8%
US Banks
3%
US Market
SRCE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
1st Source (SRCE) 1.4% 0.9% -2.6% -13.9% 36.8% 67.1%
US Banks -3.2% -3.4% -2.3% -10.8% 41.5% 46.8%
US Market -0.7% -2% 2.4% 3% 39.2% 42%
1 Year Return vs Industry and Market
  • SRCE underperformed the Banks industry which returned -10.8% over the past year.
  • SRCE underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
SRCE
Industry
5yr Volatility vs Market

Value

 Is 1st Source undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of 1st Source to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for 1st Source.

NasdaqGS:SRCE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $33.67 * 9.2%
$3.09
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $33.67
Discount Rate (Cost of Equity) See below 7.8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SRCE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.62
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.62 (1 + (1- 21%) (34.26%))
0.858
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.858 * 5.96%)
7.84%

Discounted Cash Flow Calculation for NasdaqGS:SRCE using Excess Returns Model Model

The calculations below outline how an intrinsic value for 1st Source is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:SRCE Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (9.2% – 7.84%) * $33.67)
$0.45
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.45 / (7.84% - 2.73%)
$8.85
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $33.67 + $8.85
$42.51
NasdaqGS:SRCE Discount to Share Price
Calculation Result
Value per share (USD) From above. $42.51
Current discount Discount to share price of $46.27
= -1 x ($46.27 - $42.51) / $42.51
-8.8%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of 1st Source is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for 1st Source's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are 1st Source's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SRCE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.28
NasdaqGS:SRCE Share Price ** NasdaqGS (2019-05-17) in USD $46.27
United States of America Banks Industry PE Ratio Median Figure of 593 Publicly-Listed Banks Companies 12.77x
United States of America Market PE Ratio Median Figure of 3,088 Publicly-Listed Companies 17.89x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of 1st Source.

NasdaqGS:SRCE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SRCE Share Price ÷ EPS (both in USD)

= 46.27 ÷ 3.28

14.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 1st Source is overvalued based on earnings compared to the US Banks industry average.
  • 1st Source is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does 1st Source's expected growth come at a high price?
Raw Data
NasdaqGS:SRCE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 14.1x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
6.4%per year
United States of America Banks Industry PEG Ratio Median Figure of 269 Publicly-Listed Banks Companies 1.39x
United States of America Market PEG Ratio Median Figure of 2,117 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGS:SRCE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 14.1x ÷ 6.4%

2.19x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 1st Source is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on 1st Source's assets?
Raw Data
NasdaqGS:SRCE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $30.33
NasdaqGS:SRCE Share Price * NasdaqGS (2019-05-17) in USD $46.27
United States of America Banks Industry PB Ratio Median Figure of 598 Publicly-Listed Banks Companies 1.2x
United States of America Market PB Ratio Median Figure of 5,195 Publicly-Listed Companies 1.83x
NasdaqGS:SRCE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SRCE Share Price ÷ Book Value per Share (both in USD)

= 46.27 ÷ 30.33

1.53x

* Primary Listing of 1st Source.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 1st Source is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess 1st Source's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. 1st Source has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is 1st Source expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is 1st Source expected to grow at an attractive rate?
  • 1st Source's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • 1st Source's earnings growth is positive but not above the United States of America market average.
  • 1st Source's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SRCE Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SRCE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 6.4%
NasdaqGS:SRCE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 6.4%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SRCE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SRCE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 338 96 3
2019-12-31 323 91 3
NasdaqGS:SRCE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 296 142 85
2018-12-31 291 144 82
2018-09-30 287 111 78
2018-06-30 286 129 76
2018-03-31 280 117 70
2017-12-31 275 117 68
2017-09-30 269 131 65
2017-06-30 262 109 62
2017-03-31 257 107 60
2016-12-31 253 98 57
2016-09-30 252 96 57
2016-06-30 251 103 56

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 1st Source's earnings are expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).
  • 1st Source's revenue is expected to grow by 6.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SRCE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from 1st Source Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SRCE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 3.75 3.86 3.69 3.00
2019-12-31 3.54 3.67 3.43 3.00
NasdaqGS:SRCE Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.28
2018-12-31 3.16
2018-09-30 3.02
2018-06-30 2.92
2018-03-31 2.72
2017-12-31 2.60
2017-09-30 2.50
2017-06-30 2.39
2017-03-31 2.31
2016-12-31 2.22
2016-09-30 2.18
2016-06-30 2.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if 1st Source will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess 1st Source's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
1st Source has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has 1st Source performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare 1st Source's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 1st Source's year on year earnings growth rate has been positive over the past 5 years.
  • 1st Source's 1-year earnings growth exceeds its 5-year average (20.6% vs 8.3%)
  • 1st Source's earnings growth has not exceeded the US Banks industry average in the past year (20.6% vs 40.7%).
Earnings and Revenue History
1st Source's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from 1st Source Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SRCE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 296.39 84.96 174.16
2018-12-31 291.49 81.87 173.69
2018-09-30 287.05 78.42 173.50
2018-06-30 285.99 75.70 171.32
2018-03-31 279.87 70.43 167.15
2017-12-31 275.36 67.53 163.16
2017-09-30 269.49 64.80 157.87
2017-06-30 261.58 61.92 155.64
2017-03-31 256.86 59.76 153.98
2016-12-31 252.77 57.38 153.04
2016-09-30 251.89 56.54 153.14
2016-06-30 250.94 56.16 151.92
2016-03-31 250.79 57.26 150.37
2015-12-31 247.68 56.92 148.06
2015-09-30 245.10 57.45 146.05
2015-06-30 241.65 58.41 143.29
2015-03-31 236.10 57.25 139.56
2014-12-31 234.48 57.34 138.03
2014-09-30 230.83 56.07 135.60
2014-06-30 233.67 56.00 134.88
2014-03-31 234.52 55.44 135.06
2013-12-31 233.26 54.24 134.38
2013-09-30 235.04 52.88 134.61
2013-06-30 230.87 51.01 134.53
2013-03-31 228.88 49.65 136.02
2012-12-31 226.98 48.95 137.04
2012-09-30 227.16 47.77 136.95
2012-06-30 225.19 46.29 136.41

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 1st Source has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • 1st Source used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if 1st Source improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess 1st Source's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
1st Source has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is 1st Source's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of 1st Source's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from 1st Source Company Filings, last reported 1 month ago.

NasdaqGS:SRCE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 781.10 406.95 78.06
2018-12-31 763.59 319.94 106.20
2018-09-30 750.44 428.83 113.88
2018-06-30 740.28 414.53 144.46
2018-03-31 725.61 491.50 56.49
2017-12-31 718.54 329.73 83.20
2017-09-30 710.50 451.80 99.42
2017-06-30 699.20 441.44 81.59
2017-03-31 685.93 429.61 97.64
2016-12-31 672.65 412.58 114.93
2016-09-30 670.26 354.89 110.89
2016-06-30 661.76 346.81 90.25
2016-03-31 649.97 324.56 99.99
2015-12-31 644.05 342.03 89.58
2015-09-30 639.22 411.66 75.77
2015-06-30 631.63 386.78 86.10
2015-03-31 624.51 326.77 79.62
2014-12-31 614.47 354.44 75.52
2014-09-30 603.03 340.37 90.46
2014-06-30 594.22 478.73 127.62
2014-03-31 596.59 425.69 103.55
2013-12-31 585.38 427.25 90.14
2013-09-30 578.23 349.76 91.94
2013-06-30 567.75 329.83 68.19
2013-03-31 568.36 256.84 64.62
2012-12-31 558.66 302.67 98.59
2012-09-30 553.67 310.81 71.96
2012-06-30 542.26 306.73 90.22
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • 1st Source has an acceptable proportion of non-loan assets held.
  • 1st Source's liabilities are made up of primarily low risk sources of funding.
  • Loans at 1st Source are broadly funded by customer deposits.
  • 1st Source's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • 1st Source has a sufficient allowance for bad loans.
  • 1st Source has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess 1st Source's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. 1st Source has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is 1st Source's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.33%
Current annual income from 1st Source dividends. Estimated to be 2.43% next year.
If you bought $2,000 of 1st Source shares you are expected to receive $47 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 1st Source's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • 1st Source's dividend is below the markets top 25% of dividend payers in United States of America (3.69%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SRCE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 473 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SRCE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 1.18 2.00
2019-12-31 1.07 2.00
NasdaqGS:SRCE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-24 1.080 2.305
2019-01-29 1.080 2.340
2018-10-18 1.000 2.237
2018-07-23 1.000 1.826
2018-04-25 0.960 1.768
2018-01-22 0.880 1.711
2017-07-20 0.760 1.535
2017-04-20 0.760 1.589
2017-02-17 0.720 1.556
2017-01-19 0.720 1.596
2016-10-24 0.720 1.792
2016-07-25 0.720 2.070
2016-04-21 0.720 2.169
2016-02-19 0.720 2.261
2016-01-21 0.720 2.465
2015-10-22 0.656 2.068
2015-07-28 0.655 2.154
2015-04-23 0.655 2.184
2015-01-26 0.655 2.271
2014-10-23 0.655 2.263
2014-07-24 0.655 2.461
2014-04-24 0.655 2.368
2014-01-22 0.618 2.199
2013-10-24 0.618 2.145
2013-07-25 0.618 2.492
2013-04-25 0.618 2.760
2013-02-22 0.618 2.882
2013-01-22 0.618 2.986
2012-10-25 0.618 3.124
2012-07-26 0.618 3.027
2012-04-26 0.582 2.912
2012-01-19 0.582 2.604
2011-10-20 0.582 2.629
2011-07-21 0.582 2.936
2011-04-21 0.582 3.125
2011-01-20 0.582 3.319
2010-10-21 0.582 3.326
2010-07-22 0.546 3.439
2010-04-22 0.546 3.320
2010-01-21 0.546 3.670
2009-10-22 0.582 4.313
2009-07-30 0.546 3.745

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of 1st Source's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess 1st Source's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can 1st Source afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. 1st Source has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of 1st Source's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chris Murphy
COMPENSATION $1,669,813
AGE 71
TENURE AS CEO 40.3 years
CEO Bio

Mr. Christopher J. Murphy, III, also known as Chris, serves as Director at Federal Reserve Bank of Chicago. He has been Chief Executive Officer of 1st Source Corporation since 1979. Mr. Murphy has been the Chairman of 1st Source Corporation since 1998 and also its subsidiary 1st Source Bank Limited. Mr. Murphy has been Chief Executive Officer of 1st Source Bank Limited since 1977. Mr. Murphy served as President of 1st Source Corporation. Prior thereto, he served as the President and Executive Officer at 1st Source Corporation and 1st Source Bank. He has Over 45 years of banking and business experience, including serving as a Director and/or President and Chief Executive Officer of both 1st Source Corporation or 1st Source Bank for 45 years. He contributes long-term perspective, current knowledge and extensive contacts. Prior to 1st Source, Mr. Murphy worked at Citibank and while in college, for the Office of the Comptroller of the Currency. He has extensive knowledge of 1st Source and 1st Source Bank and general knowledge in the finance/banking industry, investments, insurance and venture capital. He serves as a director of Data Realty, LLC, representing 1st Source's investment in this provider of managed data center and other technology related services. He serves on numerous boards including those of the Medical Education Foundation (serves as the citizen's advisory board of Indiana University Medical School at Notre Dame), the Indiana State Chamber of Commerce, the Indiana Commission for Higher Education, the Corporate Partnership for Economic Growth, Beacon Health Ventures and Memorial Home Care (part of Beacon Health Ventures, Inc.). Mr. Murphy has been a Director of 1st Source Corporation since 1972. He serves as a Director of 1st Source Bank. Mr. Murphy has been a Director of Quality Dining, Inc. since 1994 and is a Member of Executive Committee. He serves as a Director at Comair Holdings, LLC. He holds a B.A. in Government from the University of Notre Dame, a J.D. from the University of Virginia Law School and an M.B.A. from the Harvard University School of Business.

CEO Compensation
  • Chris's compensation has been consistent with company performance over the past year.
  • Chris's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the 1st Source management team in years:

5.3
Average Tenure
60
Average Age
  • The average tenure for the 1st Source management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Chris Murphy

TITLE
Chairman & CEO
COMPENSATION
$2M
AGE
71
TENURE
40.3 yrs

Jim Seitz

TITLE
President
COMPENSATION
$721K
AGE
65
TENURE
4.6 yrs

Andrea Short

TITLE
Executive VP
COMPENSATION
$634K
AGE
55
TENURE
6.3 yrs

John Griffith

TITLE
Executive VP
COMPENSATION
$619K
AGE
60
TENURE
8.3 yrs

Jeff Buhr

TITLE
Executive VP & Chief Credit Officer of 1st Source Bank
COMPENSATION
$537K
AGE
58
TENURE
17.3 yrs

Lanny Scoby

TITLE
City President of Kalamazoo Market-1st Source Bank
TENURE
5.3 yrs

Chris Strafford

TITLE
Senior Vice President
TENURE
2.7 yrs

Larry Mayers

TITLE
Regional President of 1st Source Bank

Chris Craft

TITLE
President & COO of Specialty Finance Group - 1st Source Bank
TENURE
3.8 yrs

Greg Brown

TITLE
President of Specialty Vehicle Division and President of Auto/Light Truck Division
TENURE
3.8 yrs
Board of Directors Tenure

Average tenure and age of the 1st Source board of directors in years:

15.1
Average Tenure
66
Average Age
  • The average tenure for the 1st Source board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Chris Murphy

TITLE
Chairman & CEO
COMPENSATION
$2M
AGE
71
TENURE
21.1 yrs

Ernestine Raclin

TITLE
Chairman Emeritus
COMPENSATION
$283K

Daniel Fitzpatrick

TITLE
Director
COMPENSATION
$80K
AGE
60
TENURE
24.3 yrs

Timothy Ozark

TITLE
Lead Director
COMPENSATION
$103K
AGE
68
TENURE
2.3 yrs

Mark Schwabero

TITLE
Director
COMPENSATION
$76K
AGE
65
TENURE
15.1 yrs

Vinod Khilnani

TITLE
Director
COMPENSATION
$100K
AGE
66
TENURE
6.1 yrs

Rex Martin

TITLE
Director
COMPENSATION
$72K
AGE
66
TENURE
23.3 yrs

John Phair

TITLE
Director
COMPENSATION
$91K
AGE
68
TENURE
15.1 yrs

Najeeb Khan

TITLE
Director
COMPENSATION
$90K
AGE
64
TENURE
8.1 yrs

Christopher Murphy

TITLE
Director
COMPENSATION
$89K
AGE
48
TENURE
8.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Aug 18 Sell Jeffrey Buhr Individual 03. Aug 18 03. Aug 18 -1,450 $56.98 $-82,621
03. Aug 18 Sell Jeffrey Buhr Individual 01. Aug 18 01. Aug 18 -550 $56.92 $-31,306
X
Management checks
We assess 1st Source's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 1st Source has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Don't Sell 1st Source Corporation (NASDAQ:SRCE) Before You Read This

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … The formula for price to earnings is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for 1st Source: P/E of 13.9 = $45.61 ÷ $3.28 (Based on the year to March 2019.) Is A High P/E Ratio Good? … All else being equal, it's better to pay a low price -- but as Warren Buffett said, 'It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price.' How Growth Rates Impact P/E Ratios Earnings growth rates have a big influence on P/E ratios.

Simply Wall St -

1st Source Corporation (NASDAQ:SRCE): What Does Its Beta Value Mean For Your Portfolio?

If you're interested in 1st Source Corporation (NASDAQ:SRCE), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Three Key Risks For 1st Source Corporation (NASDAQ:SRCE) You Should Know

Its profit and value are directly impacted by its borrowers’ ability to pay which is driven by the level of economic growth. … Risk associated with repayment is measured by bad debt which is written off as an expense, impacting 1st Source’s bottom line. … Today I will take you through some bad debt and liability measures to analyse the level of risky assets held by the bank.

Simply Wall St -

Does 1st Source Corporation's (NASDAQ:SRCE) CEO Pay Reflect Performance?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Chris Murphy's Compensation Compare With Similar Sized Companies. … Our data indicates that 1st Source Corporation is worth US$1.2b, and total annual CEO compensation is US$1.7m.

Simply Wall St -

Did 1st Source's (NASDAQ:SRCE) Share Price Deserve to Gain 61%?

For example, the 1st Source Corporation (NASDAQ:SRCE) share price is up 61% in the last 5 years, clearly besting than the market return of around 42% (ignoring dividends). … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During five years of share price growth, 1st Source achieved compound earnings per share (EPS) growth of 9.3% per year.

Simply Wall St -

1st Source Corporation (NASDAQ:SRCE) Insiders Have Been Selling

So before you buy or sell 1st Source Corporation (NASDAQ:SRCE), you may well want to know whether insiders have been buying or selling. … So we know that an insider sold shares at around the present share price of US$47.78. … Over the last year we saw more insider selling of 1st Source shares, than buying

Simply Wall St -

Is There Now An Opportunity In 1st Source Corporation (NASDAQ:SRCE)?

As a small cap stock, which tends to lack high analyst coverage, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value? … Is there still an opportunity here to buy. … Let’s examine 1st Source’s valuation and outlook in more detail to determine if there’s still a bargain opportunity

Simply Wall St -

What To Know Before Buying 1st Source Corporation (NASDAQ:SRCE) For Its Dividend

A large part of investment returns can be generated by dividend-paying stock given their role in compounding returns over time. … Historically, 1st Source Corporation (NASDAQ:SRCE) has been paying a dividend to shareholders. … Does 1st Source tick all the boxes of a great dividend stock?

Simply Wall St -

Understated Factors To Consider Before Investing In 1st Source Corporation (NASDAQ:SRCE)

1st Source Corporation’s (NASDAQ:SRCE) profitability and risk are largely affected by the underlying economic growth for the region it operates in US given it is a small-cap stock with a market capitalisation of US$1.2b. … Since banks make money by reinvesting its customers’ deposits in the form of loans, strong economic growth will drive the level of savings deposits and demand for loans, directly impacting the cash flows of those banks. … Strong management of leverage and liquidity could place the bank in a protected position at the face of macro headwinds.

Simply Wall St -

How Much Did 1st Source Corporation's (NASDAQ:SRCE) CEO Pocket Last Year?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Chris Murphy's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that 1st Source Corporation has a market cap of US$1.2b, and is paying total annual CEO compensation of US$1.9m.

Simply Wall St -

Company Info

Description

1st Source Corporation operates as the holding company for 1st Source Bank that provides commercial and consumer banking services, trust and investment management services, and insurance 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 loans, and 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 a range of 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 new and used aircraft, automobiles and light trucks, construction equipment, and medium and heavy duty trucks; and leases construction equipment, various types of trucks, vans, automobiles, motor coaches, shuttle buses, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services; and investment advisory services to trust and investment clients. As of December 31, 2018, the company operated through 80 banking centers in 17 counties in Indiana and Michigan, and Sarasota County in Florida. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.

Details
Name: 1st Source Corporation
SRCE
Exchange: NasdaqGS
Founded: 1863
$1,187,656,185
25,667,953
Website: http://www.1stsource.com
Address: 1st Source Corporation
100 North Michigan Street,
South Bend,
Indiana, 46601,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SRCE Common Stock Nasdaq Global Select US USD 07. Jan 1980
Number of employees
Current staff
Staff numbers
1,150
1st Source employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/20 01:32
End of day share price update: 2019/05/17 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/04/18
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.