1st Source (SRCE) PT Raised to $72 at KBW on Strong NIM Outlook

Keefe, Bruyette & Woods analyst Damon DelMonte raised the price target on 1st Source (NASDAQ: SRCE) to $72.00 (from $69.00) while maintaining a rating.

The analyst commented: "SRCE reported operating earnings of $1.86/sh, which beat expectations due to stronger PPNR and a lower provision. Stronger PPNR reflected better NII as NIM expanded 20bps q/q and better fee income, while higher expenses served as a partial offset. The community bank portfolio drove total loan balances up by 5% LQA, and declining time deposit balances led to a 10% LQA decline in deposits. NPAs moved higher due to one auto rental client, but SRCE is actively pursuing resolution. The stronger NIM result this quarter leads to a better run rate in 2026 and 2027 than we had previously modeled, and drives our estimates higher by 6%/5%, respectively. Bumping PT to $72 and reiterating MP."

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