1ST Source Corp. (SRCE)

Key figures

The last twelve months reported, with the latest price and balance sheet.

Revenue, last twelve months

$462.4M

Revenue growth

9.9%

Net income, last twelve months

$178.2M

Earnings per share

$7.28

Net margin

38.5%

Free cash flow

$230.0M

Return on equity

13.5%

Market value

$2.1B

Price to earnings

12.0x

Dividend yield

1.9%

Cash

$104.8M

Debt

$292.4M

Debt to equity

0.22

Shares outstanding

24.1M

Financial statements

Revenue, profit and cash flow by fiscal year, each year linked to its annual report.

By quarter

What the company said with its results

From the third quarter of 2026 results, filed 22 October 2026.

• Net income rose to $49.54 million. Up $2.00 million from the prior quarter and $7.25 million from the third quarter of 2025. The company described the result as a record.
• Diluted EPS reached $2.03. Diluted net income per share was $2.03, up $0.08 from the prior quarter and $0.32 from the third quarter of 2025, when it was $1.71.
• Securities sale and donation reduced results. The quarter carries a $3.82 million pre-tax loss on about $68 million of available-for-sale securities sold, plus a $1.00 million charitable contribution to the 1st Source Bank Foundation.
• Return on assets rose to 2.12%. Return on average assets was 2.12%, against 2.06% in the previous quarter and 1.86% a year earlier.
• Average loans grew 1.58% sequentially. Average loans and leases were $7.26 billion, up $112.77 million from the prior quarter and $240.08 million from the third quarter of 2025.
• Loan growth spread across portfolios. Average loan growth came mainly from construction equipment, renewable energy, medium and heavy duty trucks, residential real estate and home equity, and aircraft portfolios.
• Average deposits edged higher. Average deposits were $7.44 billion, up $16.45 million from the prior quarter and $19.94 million from the third quarter of 2025.
• Deposit mix shifted with municipal cycles. Higher noninterest-bearing, time and savings balances offset a seasonal drop in interest-bearing demand deposits tied to municipal tax collection cycles.
• Net interest margin rose to 4.28%. Net interest margin was 4.28%, up five basis points from the previous quarter and 20 basis points from a year earlier.
• Tax-equivalent interest income up 2.62%. Tax-equivalent net interest income was $95.74 million, up $2.45 million from the prior quarter and $6.84 million from the third quarter of 2025.
• Margin lifted by loans and investment yields. Margin rose on higher average loan balances and improved investment yields, with stable interest-bearing deposit costs; net interest recoveries had no effect this quarter.
• Noninterest income dipped 1.29%. Noninterest income was $24.70 million, down $0.32 million from the prior quarter and up $2.79 million from the third quarter of 2025.
• Securities replaced at higher yield. Securities sold in the quarter yielded 1.83% on average; the replacement securities yield 5.10%.
• Partnership gains and deposit fees offset. Partnership investment gains, including $3.03 million from sale of renewable energy tax equity investments, and higher deposit account fees offset lower trust, swap and equipment rental income.

Company events

The newest 8-K filings of 226 held.

Every filing

The newest filings with the SEC of 517 held.

Insider trades

Form 4 trades by officers, directors and 10% owners, last 12 months.

Large holders

Schedule 13D and 13G filings by holders of more than 5% of the voting shares.

Short interest

Shares sold short and not yet bought back, on each FINRA settlement date.

Funds that hold it

From each fund's latest Form 13F.

225 funds held it at 30 Jun 2026: 97 added and 65 trimmed in the quarter. The largest:

Peers

Companies in the same industry.

• Bank of Nova Scotia (BNS): revenue $27.0B, market value $116.9B
• Bank of New York Mellon Corp. (BNY): revenue $21.4B, market value $100.9B
• Itaú Unibanco Holding S.A. (ITUB): revenue $30.1B, market value $81.6B
• Fifth Third Bancorp (FITB): revenue $10.7B, market value $48.5B
• State Street Corp. (STT): revenue $15.5B, market value $47.4B
• M&T Bank Corp. (MTB): revenue $10.0B, market value $31.8B
• Northern Trust Corp. (NTRS): revenue $9.1B, market value $31.4B
• Banco Bradesco S.A. (BBD): revenue –, market value $28.9B
• Citizens Financial Group Inc. (CFG): revenue $8.9B, market value $27.5B
• First Citizens Bancshares Inc. (FCNCA): revenue $9.6B, market value $26.9B

What the company does

1st Source Corporation is a bank holding company headquartered in South Bend, Indiana, and was incorporated in Indiana in 1971. Its banking subsidiary, 1st Source Bank, offers commercial and consumer banking, trust and wealth advisory services, and insurance. Most of its 78 banking center locations sit in 19 counties in Indiana and Michigan and in Sarasota County in Florida. A Specialty Finance Group with 15 locations nationwide finances equipment, aircraft and vehicle fleets. The company has approximately 1,190 colleagues on a full-time equivalent basis, and its shares trade on the NASDAQ Global Select Market under the symbol "SRCE".

How the business is organised

It is an Indiana state bank and a member of the Federal Reserve System. Its Specialty Finance Group works through several subsidiaries, including Michigan Transportation Finance Corporation, 1st Source Specialty Finance, SFG Aircraft, 1st Source Intermediate Holding, SFG Commercial Aircraft Leasing and SFG Equipment Leasing Corporation I.

1st Source Insurance places property and casualty, individual and group health, and life insurance for individuals and businesses through thirteen offices. 1st Portfolio Management owns and manages certain available-for-sale investment securities. The Bank is also the managing general partner in four subsidiaries that hold interests in tax-advantaged investments with third parties.

What the bank sells

Business services include commercial, small business, agricultural and real estate loans, mainly to privately owned businesses. These loans finance properties, equipment, inventories, receivables and acquisitions. The bank also provides commercial leasing, treasury management, payment services, merchant services and retirement planning services.

Consumer services reach clients through banking centers, a virtual branch, a client service center and online and mobile channels. Products include checking and savings accounts, certificates of deposit, Health Savings Accounts, Individual Retirement Accounts, loans, credit cards, mortgages and home equity lines of credit. About 38% of residential mortgage originations in 2025 were sold into the secondary market, including to Fannie Mae and in Ginnie Mae mortgage-backed securities.

Trust and wealth advisory services cover trust, investment, agency and custodial work for individuals, estates, corporations, not-for-profit clients, employee benefit plans and charitable foundations. Fees depend largely on the number and size of client relationships and the market value of assets under management.

Specialty finance and renewable energy

The Specialty Finance Group lends and leases in four areas:

- Construction equipment: bulldozers, excavators, cranes, loaders and asphalt and concrete plants. Relationships generally range from $100,000 to $40 million, with terms of one to ten years. - Aircraft: general aviation aircraft and helicopters for private and corporate users, distributors, dealers, charter operators and cargo carriers. Relationships generally range from $500,000 to $30 million, with terms of one to eleven years. - Auto and light truck: fleet financing for rental and commercial leasing companies, plus a limited number of single-unit financings for specialty vehicles. - Medium and heavy duty truck: highway tractors, medium duty trucks and trailers for the trucking industry.

The bank also finances commercial solar projects across the contiguous United States, with a focus on the Northeast and Midwest. It provides construction and permanent loans and tax equity investments for community solar, commercial and industrial, small utility scale, university and municipal projects. Project sizes generally range from five megawatts to 20 megawatts.

What it lends against

The filing reports that no loan category made up 10% or more of total loans and leases.

- - - - - Commercial and agricultural: 11.32% - Residential real estate and home equity: 10.51% - Renewable energy: 9.26% - Medium and heavy duty truck: 3.83% - Consumer: 1.71%

About 61% of commercial real estate exposure is owner-occupied. The bank says its business banking and commercial real estate lending is concentrated in northern Indiana and southwestern Michigan. Its specialty finance portfolios are concentrated by collateral type. Aircraft lending also reaches abroad, primarily to borrowers in Mexico and Brazil, with all foreign balances denominated in U.S. dollars.

How it competes

The bank competes with other banks, some tied to large bank holding companies headquartered outside its principal market. It also competes with credit unions, securities firms, insurance companies, finance and mortgage companies, real estate investment trusts and some governmental agencies. The company lists the basis of competition as client service, responsiveness, loan and deposit products, interest rates, service charges, the quality of services, the convenience of facilities and, for large commercial borrowers, relative lending limits.

The company says it offers personalized, one-on-one banking through local members of the community. It relies on its history and reputation in northern Indiana dating back to 1863. It notes that many non-bank competitors face less extensive federal and state regulation, which may give them advantages in some services.

Its people and its regulators

In 2025, colleagues completed over 37,900 training modules across over 950 courses and materials. Programs include 1st Source University, the L.E.A.D. leadership program, the Engaging Manager program, a Commercial Banker Development Program for recent college graduates and tuition reimbursement. Colleagues also donated approximately 14,000 hours to 560 organizations.

1st Source is a registered bank holding company under the Bank Holding Company Act of 1956 and is supervised by the Federal Reserve. The Bank is supervised by the Indiana Department of Financial Institutions and the Federal Reserve Bank of Chicago. The Federal Deposit Insurance Corporation insures its deposits, and the Consumer Financial Protection Bureau writes consumer rules that apply to it. At 31 December 2025 the Bank was categorized as "well capitalized". The company does not currently intend to become a financial holding company.

*From 1st Source's annual report on Form 10-K for the year ended 31 December 2025. [The filing](https://www.sec.gov/Archives/edgar/data/34782/000003478226000011/source-20251231.htm)*

From the company's 10-K.