Disclosures for company 1st Source Corporation (SRCE)
Note: The boxes on the Rating and Price Target History Chart above indicate the date of Report/Note, the rating and price target. Each box represents a date on which an analyst made a change to a rating or price target.
KBW or an affiliate expects to receive or intends to seek compensation for investment banking services from 1st Source Corporation in the next three months.
KBW or an affiliate currently makes a market and/or acts as a liquidity provider in 1st Source Corporation securities.
Risks
The primary risks that could affect our earnings outlook and price target include an unexpected increase in credit costs, reduced loan demand, and margin pressure - all of which have the potential to be somewhat more pronounced near-term given the decline in economic activity related to COVID-19.
*Distribution of Ratings relates to all KBW branded research. **IB services relate to global investment banking services in the past 12 months. ***Material services relate to both global investment banking services and other non-investment banking services in the past 12 months, in accordance with Sections A and B of Annex I of Directive 2014/65/EU.
Please visit the Research Page at https://kbw.com/capabilities/research/disclosures/ for the current research disclosures and respective target price methodology applicable to the securities mentioned in this publication that are within the KBW coverage universe. For a discussion of risks and changes to target price including basis of valuation or methodology please see our stand-alone company reports and notes for all stocks. Alternatively, please see the section below titled ‘Disclosure information’ for further information on how to obtain these disclosures.
AFFILIATE DISCLOSURES
This report has been prepared by (i) Keefe, Bruyette & Woods, Inc. (“KBWI”), which is regulated by Financial Industry National Regulatory Authority (“FINRA”) and the United States Securities and Exchange Commission (“SEC”), is a member of New York Stock Exchange, and has its headquarters at 787 7th Avenue, New York, NY 10019; (ii) Stifel Nicolaus Europe Limited (“SNEL”), which is incorporated in England and Wales under company no. 03719559, holds its registered office at 4th Floor, 150 Cheapside, London EC2V 6ET and is authorised and regulated by the. Financial Conduct Authority (“FCA”) under firm registration no. 190412, and is a member of the London Stock Exchange; (iii) Stifel Europe Bank AG (“SEBA”), which is regulated by the German Federal Financial Supervisory Authority Bundesanstalt für Finanzdienstleistungsaufsicht (“BaFin”) and is a member of Deutsche Boerse and SIX Swiss Exchange; and/or (iv) Stifel Schweiz AG (“STSA”), which is a representative of SEBA in Switzerland and regulated by the Eidgenössische Finanzmarktaufsicht (“FINMA”). Each of KBWI, SNEL, SEBA, and STSA trade under the global brand name “KBW” and, in respect to SNEL, SEBA and STSA, “KBW Europe”. Each of KBWI, SNEL, SEBA, and STSA are subsidiaries of Stifel Financial Corp. Disclosures in the “Company Specific Disclosures” section referencing KBW include one or all affiliated entities unless otherwise specified. Such “Stifel” affiliates shall include (i) Stifel, Nicolaus & Company, Incorporated (“SNC”) which is a U.S. broker-dealer registered with SEC and a member of FINRA; (ii) SNEL; (iii) SEBA; (iv) STSA; and (v) Stifel Nicolaus Canada, Incorporated (“Stifel Canada”), which is authorized and regulated by Investment Industry Regulatory Organization of Canada (“IIROC”), and also trades under the names “Stifel GMP” and/or “Stifel FirstEnergy.”
Registration of non-U.S. Analysts: Any non-U.S. Research Analyst employed by a non-U.S. affiliate of KBWI contributing to this report is not registered/qualified as a research analyst with FINRA and/or the NYSE and may not be an associated person of KBWI and therefore may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances, and trading securities held by a research analyst account.
SEBA and STSA Sponsored Research: At SEBA and STSA, analysts may produce issuer-paid research (“sponsored research”). This research is produced by analysts in accordance with local regulatory requirements relating to such research. In certain jurisdictions, this issuer-paid research may be deemed to be independent research albeit not produced to the same conflicts of interest standards required by all jurisdictions for independent research. Where research has been paid for by an issuer, this will be clearly labelled. Please see our European Policy for Managing Research Conflicts of Interest for additional information.
Global Research Notes: KBW Global Research (Cross-Border Research) notes are intended for use only by Institutional or Professional Clients. Research analysts contributing content to these reports are subject to different regulatory requirements based on the jurisdiction in which they operate. Clients seeking additional information should contact the KBW entity through which they conduct business.
Disclosure Information: For current company-specific disclosures, please write to one of the KBW entities: For KBWI Research: Keefe, Bruyette & Woods, Inc. Research Department, 787 7th Avenue, 4th Floor, New York, NY 10019. For KBW Europe Research: (i) SNEL: The Compliance Officer, Stifel Nicolaus Europe Limited, 4th Floor, 150 Cheapside, London EC2V 6ET or (ii) SEBA/STSA: The Compliance Officer, Stifel Europe Bank AG, Kennedyallee 76, 60596 Frankfurt am Main. Alternatively, visit our website at https://kbw.com/capabilities/research/disclosures/. KBW has arrangements in place to manage conflicts of interest including information barriers between the Research Department and certain other business groups.
Explanation of Ratings: KBW Research Department provides three core ratings: Outperform, Market Perform, and Underperform, and three ancillary ratings: Suspended, Restricted, and Covered-Not Rated. For the purposes of FINRA Rule 2241, Outperform is classified as a Buy, Market Perform is classified as a Hold, and Underperform is classified as a Sell. Suspended indicates that KBW’s investment rating and/or target price have been temporarily suspended due to applicable regulations and/or KBW policies. Restricted indicates that KBW is precluded from providing an investment rating or price target due to the firm’s role in connection with a merger or other strategic financial transaction. Covered-Not Rated indicates that KBW is not providing an investment rating and/or price target due to the lack of publicly available information and/or its inability to adequately quantify the publicly available information to sufficiently produce such metrics.
Stocks are rated based on the share price upside to target price relative to the relevant sector index performance on a 12-month horizon. Outperform-rated stocks have a greater than 10 percentage point (“pp”) relative performance versus the sector, Market Perform-rated stocks between +10pp to -10pp relative performance versus the sector, and Underperform-rated stocks a lower than 10pp relative performance versus the sector. The 12-month price target may be determined by the stock’s fundamentally driven fair value and/or other factors (e.g., takeover premium or illiquidity discount).
Stifel/KBW Income Opportunity List, Stifel/KBW Analyst Select List, and Stifel/KBW Select Income Opportunity—The Crossovers List: These lists include companies that analysts believe have the most attractive risk-adjusted return potential over the next 12 months, or, in the case of the Stifel/KBW Income Opportunity Ideas List, have yields in excess of 2%. In some cases, analysts who cover more than one sub-sector may have more than one name on the list.
KBW Model Portfolio: “Model Portfolio Buy” - Companies placed on this list are expected to generate a total rate of return (percentage price change plus dividend yield) of 10% or more over the next 3 to 6 months. “Model Portfolio Sell” - Companies placed on this list are expected to generate a total rate of return (percentage price change plus dividend yield) at or below -10% over the next 3 to 6 months.
The purpose of the Model Portfolio is to inform institutional investors of KBWI’s short-term (as described above) outlook for a particular industry sector. The Portfolio is not available for purchase or sale, cannot be duplicated as shown, is hypothetical and is for illustrative purposes only. For a more detailed description of the selection criteria and other specifics related to the construction of the Model Portfolio, please refer to the January 5, 2010 Model Portfolio Primer and/or contact your KBWI representative for more information.
The Model Portfolio should be viewed as a short-term outlook of a particular industry sector, not as individual security recommendations. The Model Portfolio uses a three-to-six-month time horizon and should not be considered when making longer term investments. KBWI Research publishes research with a 12-month outlook on each issuer of securities contained in the Model Portfolio. Investors who are interested in a particular security should request KBWI Research’s coverage of such securities by contacting your KBWI representative. KBW research contains analyses of fundamentals underlying each issuer.
KBWI’s long-term recommendations may differ from recommendations made for the Model Portfolio. These differences are the result of different time horizons—KBWI research has a 12-month outlook and the Model Portfolio has a three-to-six-month outlook.
Although the model portfolio is based upon actual performance of actual investments, KBWI did not recommend that investors purchase this combination—or hypothetical portfolio—of investments during the time period depicted here. As this hypothetical portfolio was designed with the benefit of hindsight, the choice of investments contained in it reflects a subjective choice by KBWI. Accordingly, this hypothetical portfolio may reflect a choice of investments that performed better than an actual portfolio, which was recommended during the depicted time frame, would have performed during the same time period. Moreover, unlike an actual performance record, these results do not represent actual trading wherein market conditions or other risk factors may have caused the holder of the portfolio to liquidate or retain all or part of the represented holdings.
Stifel/KBW Income Opportunity List, Stifel/KBW Analyst Select List, and Stifel/KBW Select Income Opportunity—The Crossovers List: These lists include companies that analysts believe have the most attractive risk-adjusted return potential over the next 12 months, or, in the case of the Stifel/KBW Income Opportunity Ideas List, have yield in excess of 2%. In some cases, analysts who cover more than one sub-sector may have more than one name on the list.
Other Research Methods: Please be advised that KBW provides to certain customers on request specialized research products or services that focus on covered stocks from a particular perspective. These products or services include, but are not limited to, compilations, reviews, and analysis that may use different research methodologies or focus on the prospects for individual stocks as compared to other covered stocks or over differing time horizons or under assumed market events or conditions.
OTHER DISCLOSURES
Indexes: The following Indexes—U.S.: KBW Nasdaq Bank Index (BKX), KBW Nasdaq Insurance Index (KIX), KBW Nasdaq Capital Markets Index (KSX), KBW Nasdaq Regional Banking Index (KRX), KBW Nasdaq Property & Casualty Index (KPX), KBW Nasdaq Financial Technology Index (KFTX), KBW Nasdaq Premium Yield Equity REIT Index (KYX); KBW Nasdaq Financial Sector Dividend Yield Index (KDX); and Global: KBW Nasdaq Global Bank Index (GBKX)—are the property of KBWI and Nasdaq.
KBWI and Nasdaq do not guarantee the accuracy and/or completeness of the indexes, make no express or implied warranties with respect to the indexes, and shall have no liability for any damages, claims, losses, or expenses caused by errors in the index calculation. KBWI and Nasdaq make no representation regarding the advisability of investing in options on the Index. Past performance is not necessarily indicative of future results.
ETFs—Important Disclosures: The shares (“Shares”) of ETFs are not sponsored, endorsed, sold, or promoted by KBWI. KBWI makes no representation or warranty, express or implied, to the owners of the Shares or any member of the public regarding the advisability of investing in securities generally or in the Shares particularly, or the ability of its Indexes to track general stock market performance. The only relationship of KBWI to Invesco Capital Management LLC is the licensing of certain trademarks and trade names of KBWI and its Indexes which are determined, composed, and calculated by KBWI without regard to Invesco Capital Management LLC, the fund, or the Shares. Additionally, KBWI and The NASDAQ OMX Group, Inc. (“Nasdaq”) are parties to an agreement (the “Nasdaq Agreement”) whereby KBWI has given Nasdaq the power and authority to license certain trademarks and trade names of KBW and its Indexes, including Invesco UK Services Limited and potential future Licensees. KBWI has no obligation to take the needs of Invesco Capital Management LLC or any other current or future Licensee or the owners of the shares into consideration in determining, composing, or calculating the Indexes. KBWI is not responsible for and has not participated in any determination or calculation made with respect to issuance or redemption of the Shares. KBWI has no obligation or liability in connection with the administration, marketing, or trading of the Shares.
Compensation: KBWI and Invesco Capital Management LLC are parties to an index licensing agreement wherein KBWI licenses its Indexes to Invesco Capital Management LLC and KBWI receives as compensation payments based on the amount of assets under management in the ETFs (which the licensed Indexes underlie) and which may be recommended in this report. Pursuant to the Nasdaq Agreement, KBWI similarly receives as compensation payments based on the amount of assets under management in any Licensee ETFs (which the licensed Indexes underlie) and which may or may not also be recommended in this report.
ETF and Index Reports: The author of index and related ETF reports is the Director of KBWI’s Research Department, who is also the head of the KBWI Index Committee. This Index Committee selects index components for the indexes upon which the recommended ETFs are based.
ETF Risks: There are risks involved with investing in ETFs, including possible loss of money. ETFs may not always trade or price as expected. Generally, security classifications used in calculating allocation tables are as of the last trading day of the previous month. ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Diversification does not ensure a profit and may not protect against loss in declining markets. Investors should refer to the individual ETF prospectus for a more detailed discussion of the specific risks and considerations for an individual ETF.
Investing in a single sector may be subject to more volatility than funds investing in a diverse group of sectors. Brokerage commissions and ETF expenses will reduce returns. In general, ETFs can be expected to move up or down in value with the value of the applicable index. Although ETFs may be bought and sold on the exchange through any brokerage account, ETFs are not individually redeemable from the Fund. Investors may acquire ETFs and tender them for redemption through the Fund in Creation Unit Aggregations only, please see the prospectus (link below) for more details. Shares are not actively managed and are subject to risks including those regarding short selling and margin maintenance requirements. Past performance is not necessarily indicative of future results.
An investor should consider the Funds’ investment objectives, risks, charges, and expenses carefully before investing. This and other information can be found in their prospectuses. Not all ETFs may be suitable for retail investors. Individual ETFs may not be available for sale in all jurisdictions. For this and more complete information about the U.S Funds, call Invesco at 1-800-983-0903 or visit https://www.invesco.com/ETFs for a prospectus. For more complete information about the non-U.S. Funds, investors should contact Invesco at https://etf.invesco.com/gb/private/en/product/invesco-kbw-nasdaq-fintech-ucits-etf-acc/trading-information for a prospectus. The prospectus should be read carefully before investing.
Shares of the ETFs funds are not guaranteed or insured by the U.S. Federal Deposit Insurance Corporation (FDIC) or by another governmental agency; they are not obligations of the FDIC nor are they deposits or obligations of, or guaranteed by, KBWI or Invesco Capital Management LLC. ETFs are distributed by Invesco Distributors, Inc. the distributor of the Invesco Exchange-Traded Fund Trust II.
General Risk Disclosure: Investments in securities or financial instruments involve numerous risks which may include market risk, counterparty default risk, liquidity risk, and exchange rate risk. No security or financial instrument is suitable for all investors, and some investors may be prohibited in certain states or other jurisdictions from purchasing securities mentioned in this communication. The securities of some issuers may not be subject to the audit and reporting standards, practices, and requirements comparable to those companies located in the investor’s local jurisdiction. Where net dividends to ADR investors are discussed, these are estimated using withholding tax rate conventions, and deemed accurate, but recipients should always consult their tax advisor for exact dividend computations.
COUNTRY-SPECIFIC AND JURISDICTIONAL DISCLOSURES
United States: Research produced and distributed by KBW Europe is distributed by KBW Europe to “Major US Institutional Investors” as defined in Rule 15a-6 under the US Securities Exchange Act of 1934, as amended. KBWI may also distribute research prepared by KBW Europe directly to U.S. clients, including U.S. clients that are not Major U.S. Institutional Investors. In these instances, KBWI accepts responsibility for the content. KBW Europe is a non-U.S. broker-dealer and accordingly, any transaction by a U.S. client in the securities discussed in the document must be effected by KBWI. U.S. clients wishing to place an order should contact their KBWI representative.
U.K. and European Economic Area (EEA): This report is issued and approved for distribution in the U.K. and EEA by KBW Europe. Research produced by KBW Europe is not intended for use by, and should not be made available to, retail clients as defined by the FCA/MiFID. Our European Policy for Managing Research Conflicts of Interest is available at www.stifel.com/institutional/ImportantDisclosures.
Australia: Research produced by KBW is distributed by SNEL under the Australian Securities and Investments Commission (“ASIC”) Class Order [CO 03/1099] exemption from the requirement to hold an Australian Financial Services Licence (“AFSL”). This research may only be distributed to a “Wholesale Client” within the meaning of section 761G of the Corporations Act 2001 (Cth).
Canadian Distribution: Research produced by KBW is distributed in Canada by KBW in reliance on the international dealer exemption. This material is intended for use only by professional or institutional investors. None of the investments or investment services mentioned or described herein is available to other persons or to anyone in Canada who is not a “permitted client” as defined under applicable Canadian securities law.
Republic of South Africa: Research produced by KBW is distributed by SNEL to “Clients” as defined in FSCA FAIS Notice 20 of 2018 (the “FAIS Notice”) issued by the Financial Services Conduct Authority. Research distributed by SNEL is pursuant to an exemption from the licensing requirements under Section 7(1) of the Financial Advisory and Intermediary Services Act, 2002.
In jurisdictions where KBW is not already licensed or registered to trade securities, transactions will only be effected in accordance with local securities legislation which will vary from jurisdiction to jurisdiction and may require that a transaction is carried out in accordance with applicable exemptions from registration and licensing requirements. Non-U.S. customers wishing to effect a transaction should contact a representative of the KBW entity in their regional jurisdiction except where governing law permits otherwise. U.S. customers wishing to effect a transaction should do so by contacting a representative of KBWI.
ADDITIONAL DISCLOSURES
The information contained herein has been prepared from sources believed to be reliable but is not guaranteed by us and is not a complete summary or statement of all available data, nor is it considered an offer to buy or sell any securities referred to herein. Opinions expressed are as of the date of this publication and are subject to change without notice. These opinions do not constitute a personal recommendation and do not take into account the particular investment objectives, financial situation, or needs of individual investors. Employees of KBW or its affiliates may, at times, release written or oral commentary, technical analysis, or trading strategies that differ from the opinions expressed within. KBW or any of its affiliates may have positions in the securities mentioned and may make purchases or sales of such securities from time to time in the open market or otherwise and may sell to or buy from customers such securities on a principal basis; such transactions may be contrary to recommendations in this report. Past performance should not and cannot be viewed as an indicator of future performance. Unless otherwise noted, the financial instruments mentioned in this report are priced as of market close on the previous trading day and presumed performance is calculated always over the next 12 months.
As a multi-disciplined financial services firm, KBW regularly seeks investment banking assignments and compensation from issuers for services including, but not limited to, acting as an underwriter in an offering or financial advisor in a merger or acquisition, or serving as a placement agent in private transactions.
The securities discussed in this report may not be available for sale in all jurisdictions and may have adverse tax implications for investors. Clients are advised to speak with their legal or tax advisor prior to making an investment decision.
