[144] Pegasystems Inc SEC Filing

Rhea-AI Filing Summary

1st Source Corp. (SRCE) Q2 2025 10-Q highlights:

• Earnings: Q2 net income rose 1.4 % to $37.3 m; diluted EPS up to $1.51 from $1.49. First-half (FH) EPS climbed 12.7 % to $3.02, delivering 12.9 % YoY profit growth to $74.8 m.
• Net interest margin: Q2 net interest income expanded 15 % YoY to $85.2 m as deposit costs fell; FH growth was 13.8 % to $166.1 m. Interest expense declined 11 % despite mid-single-digit asset growth.
• Credit quality: Allowance increased 5 % YTD to $163.5 m (2.30 % of loans). Provision for credit losses surged to $7.9 m in Q2 (vs. $0.1 m LY) and $11.0 m FH (vs. $7.2 m), signalling higher expected loss content.
• Balance sheet: Total assets reached $9.09 bn (+1.7 % since YE). Net loans grew 3.5 % to $6.93 bn, led by renewable energy (+18 %) and commercial (+8 %). Deposits rose 2.9 % to $7.44 bn, while short-term borrowings fell 56 % to $110 m, reducing wholesale funding reliance.
• Capital & OCI: Shareholders’ equity rose 7.9 % to $1.20 bn; accumulated OCI loss narrowed to $56.8 m from $87.2 m on bond-market recovery. Outstanding shares: 24.54 m.
• Noninterest items: Fee income steady at $23.1 m; a $1.0 m security loss offset trust and insurance growth. Expenses rose 7 % FH, driven by compensation and tech spend.
• Liquidity: Cash & equivalents increased to $149 m; AFS securities fair value $1.46 bn with $79 m unrealized loss (5.4 % of cost).

Overall, SRCE delivered strong margin-led earnings growth and deposit inflows, partly tempered by higher credit provisioning and expense pressure.

Positive

• Net interest income up 15 % YoY in Q2 and 14 % YTD, reflecting effective deposit pricing.
• EPS increased 13 % YTD, demonstrating solid operating leverage.
• Deposit growth of 2.9 % YTD allowed a 56 % reduction in short-term borrowings, strengthening liquidity.
• Accumulated OCI loss narrowed by $30 m, boosting tangible equity.

Negative

• Provision for credit losses jumped to $7.9 m in Q2 (vs. $0.1 m LY) signalling higher expected credit risk.
• Noninterest expense rose 7 % YTD, outpacing fee income growth.
• Realized security loss of $1.0 m and remaining $79 m unrealized losses keep rate-sensitivity elevated.

Insights

Financial Analyst

TL;DR: Margin expansion and deposit growth drive double-digit YTD EPS, but rising loss provisions warrant watch.

SRCE’s 15 bp YoY improvement in net interest spread translated to a 14 % jump in FH net interest income. Deposit balances, notably low-cost DDA, expanded, allowing the bank to reduce expensive wholesale funding. Although fee revenue was flat, cost growth remained contained, producing a 52 % efficiency ratio (est.). Capital benefited from OCI recovery, pushing tangible book value higher. The main blemish is the sharp uptick in loan-loss provisioning tied to commercial credits; however, the reserve now covers 2.3 % of loans, above regional-bank peers. On balance, fundamentals lean positive.

Risk Analyst

TL;DR: Credit costs and $79 m unrealized bond losses are rising risks amid rapid loan growth.

Loan portfolio expansion in niche segments (renewable energy, aircraft, construction equipment) outpaces deposit growth, elevating concentration risk. The Q2 provision spike and 5 % reserve build suggest emerging stress; watch criticized-asset trends in upcoming quarters. Securities portfolio remains rate-sensitive: a 100 bp rate back-up could erode OCI gains and capital flexibility. Nonetheless, liquidity improved as cash balances grew and wholesale borrowings dropped. Overall risk profile is manageable but trending less favorable.

Form 144 Filer Information	UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 144 NOTICE OF PROPOSED SALE OF SECURITIES PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OF 1933
FORM 144

144: Filer Information

Filer CIK
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Is this a LIVE or TEST Filing?	LIVE TEST
Submission Contact Information
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144: Issuer Information

Name of Issuer

SEC File Number

Address of Issuer

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Name of Person for Whose Account the Securities are To Be Sold

See the definition of "person" in paragraph (a) of Rule 144. Information is to be given not only as to the person for whose account the securities are to be sold but also as to all other persons included in that definition. In addition, information shall be given as to sales by all persons whose sales are required by paragraph (e) of Rule 144 to be aggregated with sales for the account of the person filing this notice.

Relationship to Issuer

144: Securities Information

Title of the Class of Securities To Be Sold	Name and Address of the Broker	Number of Shares or Other Units To Be Sold	Aggregate Market Value	Number of Shares or Other Units Outstanding	Approximate Date of Sale	Name the Securities Exchange
Common	Morgan Stanley Smith Barney LLC Executive Financial Services 1 New York Plaza 8th Floor New York NY 10004	9879	571172.17	171080665	07/24/2025	NASDAQ

Furnish the following information with respect to the acquisition of the securities to be sold and with respect to the payment of all or any part of the purchase price or other consideration therefor:

144: Securities To Be Sold

Title of the Class	Date you Acquired	Nature of Acquisition Transaction	Name of Person from Whom Acquired	Is this a Gift?	Date Donor Acquired	Amount of Securities Acquired	Date of Payment	Nature of Payment *
Common	07/24/2025	Exercise of options under a registered plan	Issuer			9879	07/24/2025	Cash

* If the securities were purchased and full payment therefor was not made in cash at the time of purchase, explain in the table or in a note thereto the nature of the consideration given. If the consideration consisted of any note or other obligation, or if payment was made in installments describe the arrangement and state when the note or other obligation was discharged in full or the last installment paid.

Furnish the following information as to all securities of the issuer sold during the past 3 months by the person for whose account the securities are to be sold.

144: Securities Sold During The Past 3 Months

Name and Address of Seller	Title of Securities Sold	Date of Sale	Amount of Securities Sold	Gross Proceeds
RIFAT KERIM AKGONUL 225 Wyman Street Waltham MA 02451	Common	05/20/2025	7000	730240.00
RIFAT KERIM AKGONUL 225 Wyman Street Waltham MA 02451	Common	05/09/2025	3164	293796.07
RIFAT KERIM AKGONUL 225 Wyman Street Waltham MA 02451	Common	05/09/2025	3933	365202.25
Rifat Kerim Akgonul 225 Wyman Street Waltham MA 02451	Common	05/01/2025	2000	185949.00
RIFAT KERIM AKGONUL 225 Wyman Street Waltham MA 02451	Common	04/24/2025	6000	537258.60
RIFAT KERIM AKGONUL 225 Wyman Street Waltham MA 02451	Common	04/23/2025	4000	354620.00

144: Remarks and Signature

Remarks

Date of Notice

ATTENTION:

The person for whose account the securities to which this notice relates are to be sold hereby represents by signing this notice that he does not know any material adverse information in regard to the current and prospective operations of the Issuer of the securities to be sold which has not been publicly disclosed. If such person has adopted a written trading plan or given trading instructions to satisfy Rule 10b5-1 under the Exchange Act, by signing the form and indicating the date that the plan was adopted or the instruction given, that person makes such representation as of the plan adoption or instruction date.

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ATTENTION: Intentional misstatements or omission of facts constitute Federal Criminal Violations (See 18 U.S.C. 1001)

FAQ

How did SRCE's Q2 2025 earnings compare to last year?

Net income grew 1.4 % to $37.3 m, and diluted EPS rose to $1.51 from $1.49.

What drove the increase in net interest income for SRCE?

Lower funding costs and modest loan growth lifted net interest income 15 % YoY to $85.2 m.

How much did SRCE add to its allowance for loan losses?

Allowance increased to $163.5 m, with a Q2 provision of $7.9 m and YTD provision of $11.0 m.

What is SRCE's deposit trend in 2025?

Total deposits reached $7.44 bn, up 2.9 % since December 2024.

How large are SRCE's unrealized losses on AFS securities?

At June 30 2025, unrealized losses totaled $79 m (5.4 % of amortized cost).

What dividend did SRCE pay in Q2 2025?

The company paid a $0.38 per share common dividend, up from $0.34 a year ago.