Record Q1 2026 for 1st Source (NASDAQ: SRCE) as profit rises and dividend increases
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
1st Source Corporation reported record first quarter 2026 results with net income of $39.96 million, up 6.49% from a year earlier but down 2.88% from the prior quarter. Diluted EPS was $1.63, rising from $1.52 a year ago and slipping from $1.67 in the previous quarter.
Tax‑equivalent net interest income reached $90.29 million, up 11.36% year over year, as the net interest margin expanded to 4.25% from 3.90%. Average loans and leases grew to $7.02 billion, while average deposits were $7.19 billion, reflecting lower brokered balances.
The board approved a higher quarterly cash dividend of $0.43 per share, up 13.16% from a year ago, and the company repurchased 338,356 shares for $23.35 million. Credit costs increased, with a $7.27 million provision for credit losses and net charge‑offs of $3.96 million, though the allowance rose to 2.33% of loans and leases and nonperforming assets were 1.03% of loans and leases as of March 31, 2026.
Positive
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Negative
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Insights
Record quarterly profit, stronger margin, but higher credit costs.
1st Source delivered record Q1 2026 net income of $39.96 million, up 6.49% year over year, driven by loan and lease growth to $7.02 billion and tax‑equivalent net interest income rising 11.36% to $90.29 million. Net interest margin improved to 4.25% from 3.90% a year earlier.
Credit quality metrics show some pressure. Provision for credit losses increased to $7.27 million versus $3.27 million a year ago, with net charge‑offs at $3.96 million, largely tied to two Auto and Light Truck accounts serving the film industry. The allowance rose to 2.33% of loans and leases and nonperforming assets were 1.03%.
Capital remains strong, with a common equity‑to‑assets ratio of 14.02% and Common Equity Tier 1 of 15.30%. Management increased the quarterly dividend to $0.43 per share and repurchased 338,356 shares for $23.35 million, indicating confidence while still maintaining historically conservative capital levels as described.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Net income Q1 2026: $39.96 million
Diluted EPS Q1 2026: $1.63 per share
Tax-equivalent net interest income: $90.29 million
+5 more
8 metrics
Net income Q1 2026
$39.96 million
Up 6.49% vs Q1 2025; down 2.88% vs prior quarter
Diluted EPS Q1 2026
$1.63 per share
Up from $1.52 in Q1 2025; down from $1.67 prior quarter
Tax-equivalent net interest income
$90.29 million
Up 11.36% from first quarter 2025
Net interest margin - FTE
4.25%
Q1 2026; up from 3.90% in Q1 2025
Provision for credit losses
$7.27 million
Q1 2026; higher than $3.27 million in Q1 2025
Allowance for loan and lease losses ratio
2.33%
As of March 31, 2026; of total loans and leases
Quarterly dividend
$0.43 per common share
Q1 2026; up 13.16% from year-ago dividend
Common Equity Tier 1 ratio
15.30%
As of March 31, 2026; regulatory capital measure
Key Terms
tax-equivalent net interest income, net interest margin, provision for credit losses, nonperforming assets, +2 more
6 terms
tax-equivalent net interest income financial
"Tax-equivalent net interest income was $90.29 million, up $9.21 million, or 11.36% from the first quarter a year ago"
Tax-equivalent net interest income converts income that is sheltered from taxes (such as interest from certain municipal securities) into the amount it would have been if taxed, so all interest receipts can be compared on the same after-tax basis. For investors this matters because it reveals the true, apples-to-apples contribution of different interest sources to a lender’s earnings and helps assess profitability and value as if all income faced the same tax treatment.
net interest margin financial
"Tax-equivalent net interest margin was 4.25%, up 35 basis points from the first quarter of 2025"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
provision for credit losses financial
"Provision for credit losses of $7.27 million was recorded during the quarter compared to $3.27 million during the previous year’s first quarter"
Provision for credit losses is an amount set aside by a financial institution to cover potential future losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution manage risks and stay financially healthy. For investors, it signals how cautious a lender is about potential loan defaults and can impact the company's profitability and financial stability.
nonperforming assets financial
"The ratio of nonperforming assets to loans and leases was 1.03% as of March 31, 2026"
Nonperforming assets are loans or investments that are not generating expected payments or returns because the borrower has fallen behind on payments or the investment has lost value. They matter to investors because a high level of nonperforming assets can indicate financial trouble for a bank or institution, potentially affecting its stability and profitability.
Common Equity Tier 1 ratio financial
"The Common Equity Tier 1 ratio, calculated under banking regulatory guidelines, was 15.30% at March 31, 2026"
The common equity tier 1 ratio is a measure of a bank's financial strength, showing how much high-quality core capital it has compared to its total risk-weighted assets. Think of it as a safety buffer or cushion that helps ensure the bank can withstand economic shocks. For investors, a higher ratio indicates a stronger, more resilient bank, making it a key indicator of its financial health.
efficiency ratio financial
"Efficiency ratio: expense to revenue - adjusted (1) | 48.16 %"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
Earnings Snapshot
Net income: $39.96 million
Q1 2026
Net income
$39.96 million
+6.49% YoY
Diluted EPS
$1.63
+7.24% YoY
Net interest income - FTE
$90.29 million
+11.36% YoY
Net interest margin - FTE
4.25%
+0.35 percentage points YoY
Average loans and leases
$7.02 billion
+3.29% YoY
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): April 23, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File No.) | (I.R.S. Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
ITEM 2.02 Results of Operations and Financial Condition.
On April 23, 2026 , 1st Source Corporation issued a press release that announced its first quarter earnings for 2026. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.
ITEM 9.01 Financial Statements and Exhibits.
Exhibit 99.1: Press release dated April 23, 2026 , with respect to 1st Source Corporation’s financial results for the first quarter ended March 31, 2026.
101 Pursuant to Rule 406 of Regulation S-T, the cover page is formatted in Inline XBRL (Inline eXtensible Business reporting Language).
104 Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| 1st SOURCE CORPORATION | ||||||||
| (Registrant) | ||||||||
Date: | /s/ BRETT A. BAUER | |||||||
| Brett A. Bauer | ||||||||
| Treasurer and Chief Financial Officer | ||||||||
| Principal Accounting Officer | ||||||||
Exhibit 99.1
 | |||||||||||
| For: | Immediate Release | Contact: | Brett Bauer | ||||||||
| April 23, 2026 | 574-235-2000 | ||||||||||
1st Source Corporation Reports Record First Quarter Results,
Increased Cash Dividend Declared
QUARTERLY HIGHLIGHTS
•Net income was $39.96 million for the quarter, up $2.44 million or 6.49% from the first quarter of 2025 and down $1.19 million or 2.88% from the previous quarter. Diluted net income per common share was $1.63, up $0.11 or 7.24% from the prior year’s first quarter of $1.52 and down $0.04 or 2.40% from the previous quarter.
•Return on average assets was 1.80% for the current quarter, up from 1.72% in the first quarter of 2025 and unchanged from the previous quarter. Return on average common shareholders’ equity decreased to 12.53% compared to 13.33% in the first quarter of 2025 and 12.94% in the previous quarter.
•A cash dividend increase of three cents per share to $0.43 per common share for the quarter was approved, up five cents or 13.16% from the cash dividend declared a year ago.
•During the first quarter of 2026, 338,356 shares were repurchased for $23.35 million and placed into treasury.
•Average loans and leases grew $223.81 million, or 3.29% from the first quarter of 2025 and increased $69.67 million or 1.00% from the previous quarter.
•Average deposits decreased $141.97 million or 1.94% from the first quarter a year ago and decreased $229.44 million or 3.09% from the previous quarter. Average deposits, net of brokered deposits, increased $212.25 million or 3.16% from the first quarter of 2025 and decreased $106.42 million or 1.51% from the previous quarter.
•Tax-equivalent net interest income was $90.29 million, up $9.21 million, or 11.36% from the first quarter a year ago and down $3.16 million or 3.38% from the previous quarter. Tax-equivalent net interest margin was 4.25%, up 35 basis points from the first quarter of 2025 and down four basis points from the previous quarter. Higher yields on investment securities from portfolio repositioning trades during 2025 helped limit margin contraction partially offset by lower net interest recoveries compared to the previous quarter.
•Provision for credit losses of $7.27 million was recorded during the quarter compared to $3.27 million during the previous year’s first quarter and $0.71 million in the previous quarter. The allowance for loan and lease losses as a percentage of total loans and leases rose to 2.33% at March 31, 2026, up from 2.29% at March 31, 2025 and 2.30% at December 31, 2025.
South Bend, IN - 1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported quarterly net income of $39.96 million for the first quarter of 2026, up 6.49% compared to $37.52 million in the first quarter a year ago and down 2.88% compared to $41.14 million reported in the previous quarter. Diluted net income per common share for the first quarter of 2026 was $1.63, up 7.24% versus $1.52 in the first quarter of 2025 and down 2.40% compared to $1.67 in the previous quarter.
At its April 2026 meeting, the Board of Directors approved an increase in the cash dividend of three cents per share, raising the approved dividend for the quarter to $0.43 per common share, up five cents or 13.16% from the cash dividend declared a year ago. The cash dividend is payable to shareholders of record on May 5, 2026, and will be paid on May 15, 2026.
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Andrea G. Short, President and Chief Executive Officer, commented, “We are pleased to announce that 1st Source had a record first quarter. We ended 2025 and the first quarter of 2026 with a very strong and stable balance sheet and we will continue to focus on safety and soundness given the level of economic uncertainty currently impacting our clients and their businesses. During the first quarter of 2026, average loans and leases grew $69.67 million, up 1.00% from the previous quarter, our liquidity position remained solid, and our historically conservative capital position was maintained.
“We were happy to learn that 1st Source received several awards, further solidifying that our mission-first approach is the right way to do business. On a national scale, we were included in Forbes’ America’s Best Banks list for the third consecutive year and came in at #11 out of the top 100 named. This award is driven by 10 metrics measuring growth, credit quality, and profitability.
“Additionally, we learned that 1st Source was listed as #12 on Forbes’ America’s Best Midsize Employers list. This award is especially meaningful because it identifies companies that are rated most highly by their employees. Respondents ranked their employers on a range of criteria including salary, work environment, and opportunities to advance. We greatly value this feedback, and it aligns with our culture and core values of integrity, teamwork, superior quality, outstanding client service, and community leadership.
“And finally, at the state level, 1st Source was recognized for our small business lending across Indiana for the 13th year in a row by the Indiana District Office of the U.S. Small Business Administration (SBA). We once again received the Community Bank Gold Level Award for delivering the greatest number of SBA loans in Indiana in 2025.” Mrs. Short concluded.
FIRST QUARTER 2026 FINANCIAL RESULTS
Loans and Leases
First quarter average loans and leases were $7.02 billion, which was up $223.81 million or 3.29% from the first quarter of 2025 and increased $69.67 million or 1.00% from the previous quarter. Average loan growth in the first quarter of 2026 occurred mainly within the Renewable Energy, Commercial and Agricultural, and Commercial Real Estate portfolios.
Deposits
First quarter average deposits were $7.19 billion, which was down $141.97 million or 1.94% compared to the first quarter a year ago and decreased $229.44 million or 3.09%, from the previous quarter. Average deposit balances decreased from the previous quarter primarily due to lower brokered deposits, seasonal outflows of interest-bearing public fund deposits, and decreased noninterest-bearing demand deposits. Average brokered deposits were $259.29 million, a decrease of $354.23 million or 57.74% from the prior year first quarter and were $123.02 million or 32.18% lower than the previous quarter.
Net Interest Income and Net Interest Margin
First quarter 2026 tax-equivalent net interest income increased $9.21 million, or 11.36% from the first quarter a year ago and decreased $3.16 million to $90.29 million, down 3.38% from the previous quarter.
First quarter 2026 net interest margin was 4.24%, an increase of 35 basis points from the same period in 2025 and a decrease of four basis points from the 4.28% in the previous quarter. On a fully tax-equivalent basis, first quarter 2026 net interest margin was 4.25%, an increase of 35 basis points from the same period in 2025 and down four basis points compared to the 4.29% in the previous quarter. The increase from the first quarter of 2025 was primarily due to higher average loan and lease balances, improved yields on investments from portfolio repositioning trades made in 2025, and lower interest-bearing deposit costs. The decrease from the prior quarter was primarily due to lower yields on loans and leases and higher short-term borrowing costs offset by increased yields on investments from portfolio repositioning trades executed during 2025 and lower interest-bearing deposit costs. Net interest recoveries had a positive one basis point impact during the first quarter on the tax-equivalent net interest margin, compared to a positive seven basis points in the prior year first quarter and positive 14 basis points during the previous quarter.
Noninterest Income
First quarter 2026 noninterest income of $23.00 million was relatively flat compared to the first quarter a year ago and increased $5.46 million or 31.16% compared to the previous quarter.
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The increase from the previous quarter was mainly due to available-for-sale securities losses of $5.81 million realized in the prior quarter and increased insurance commissions, offset by lower brokerage fees and commissions, lower interest rate swap fees, a reduction in debit card income, and lower deposit account fees.
Noninterest Expense
First quarter 2026 noninterest expense of $54.52 million increased $1.44 million or 2.71% from the first quarter a year ago and decreased $2.04 million or 3.61% compared to the prior quarter.
The increase in noninterest expense compared to the first quarter of 2025 was the result of increased salaries and wages due to normal merit increases, higher occupancy expenses from snow removal, increased data processing charges and a rise in debit card losses. These increases were offset by lower leased equipment depreciation and a decrease in legal fees.
The decrease in noninterest expense compared to the prior quarter was the result of reduced incentive compensation and fewer group insurance claims, lower professional consulting costs, decreased furniture and equipment expense, lower intangible asset amortization, and fewer business development and marketing expenses.
Credit
The allowance for loan and lease losses increased to $164.90 million as of March 31, 2026, or 2.33% of total loans and leases. The 2.33% is an increase compared to 2.29% at March 31, 2025 and 2.30% at December 31, 2025 due to a weakened economic outlook with increased uncertainty. Net charge-offs of $3.96 million were recorded for the first quarter of 2026, compared with net charge-offs of $0.18 million in the same quarter a year ago and net charge-offs of $0.28 million in the prior quarter.
The provision for credit losses was $7.27 million for the first quarter of 2026, an increase of $4.01 million compared with the same period in 2025 and an increase of $6.56 million from the previous quarter. Higher net charge-offs during the quarter, the majority of which were from two unique Auto and Light Truck accounts who provide special trailer units serving the film industry, were the primary reason for the increase in the provision for credit losses. The ratio of nonperforming assets to loans and leases was 1.03% as of March 31, 2026, compared to 0.63% on March 31, 2025 and 1.10% on December 31, 2025. The decrease in nonperforming assets during the quarter was primarily from lower nonaccrual loans and leases partially offset by an increase in repossessed assets.
Capital
As of March 31, 2026, the common equity-to-assets ratio was 14.02%, compared to 12.96% a year ago and 14.08% at December 31, 2025. The tangible common equity-to-tangible assets ratio was 13.22% at March 31, 2026, compared to 12.14% a year earlier and 13.28% at December 31, 2025. The Common Equity Tier 1 ratio, calculated under banking regulatory guidelines, was 15.30% at March 31, 2026, compared to 14.71% a year ago and 15.52% at December 31, 2025.
During the first quarter of 2026, 338,356 shares were repurchased for treasury reducing common shareholders’ equity by $23.35 million.
ABOUT 1ST SOURCE CORPORATION
1st Source common stock is traded on the NASDAQ Global Select Market under “SRCE” and appears in the National Market System tables in many daily newspapers under the code name “1st Src.” Since 1863, 1st Source has been committed to the success of its clients, individuals, businesses and the communities it serves. For more information, visit www.1stsource.com.
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1st Source serves the northern half of Indiana and southwest Michigan and is the largest locally controlled financial institution headquartered in the area. While delivering a comprehensive range of consumer and commercial banking services through its community bank offices, 1st Source has distinguished itself with highly personalized services. 1st Source Bank also competes for business nationally by offering specialized financing services for new and used private and cargo aircraft, automobiles for leasing and rental agencies, medium and heavy-duty trucks, and construction equipment. The Corporation includes 78 banking centers, 16 1st Source Bank Specialty Finance Group locations nationwide, nine Wealth Advisory Services locations, 13 1st Source Insurance offices, and three loan production offices.
FORWARD LOOKING STATEMENTS
Except for historical information contained herein, the matters discussed in this document express “forward-looking statements.” Generally, the words “believe,” “contemplate,” “seek,” “plan,” “possible,” “assume,” “hope,” “expect,” “intend,” “targeted,” “continue,” “remain,” “estimate,” “anticipate,” “project,” “will,” “should,” “indicate,” “would,” “may” and similar expressions indicate forward-looking statements. Those statements, including statements, projections, estimates or assumptions concerning future events or performance, and other statements that are other than statements of historical fact, are subject to material risks and uncertainties. 1st Source cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made.
1st Source may make other written or oral forward-looking statements from time to time. Readers are advised that various important factors could cause 1st Source’s actual results or circumstances for future periods to differ materially from those anticipated or projected in such forward-looking statements. Such factors, among others, include changes in laws, regulations or accounting principles generally accepted in the United States; 1st Source’s competitive position within its markets served; increasing consolidation within the banking industry; unforeseen changes in interest rates; unforeseen downturns in the local, regional or national economies or in the industries in which 1st Source has credit concentrations; and other risks discussed in 1st Source’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, which filings are available from the SEC. 1st Source undertakes no obligation to publicly update or revise any forward-looking statements.
NON-GAAP FINANCIAL MEASURES
The accounting and reporting policies of 1st Source conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures are used by management to evaluate and measure the Company’s performance. Although these non-GAAP financial measures are frequently used by investors to evaluate a financial institution, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. These include taxable-equivalent net interest income (including its individual components), net interest margin (including its individual components), the efficiency ratio, tangible common equity-to-tangible assets ratio and tangible book value per common share. Management believes that these measures provide users of the Company’s financial information with a more meaningful view of the performance of the interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures differently.
Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent (“FTE”) basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses and lease depreciation), measures how much it costs to produce one dollar of revenue. Securities gains or losses and lease depreciation are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity-to-tangible assets ratio and tangible book value per common share as useful measurements of the Company’s equity.
See the table marked “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of certain non-GAAP financial measures used by the Company with their most closely related GAAP measures.
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(charts attached)
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| 1st SOURCE CORPORATION | ||||||||||||||||||||
| 1st QUARTER 2026 FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
| (Unaudited - Dollars in thousands, except per share data) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||||||||
| 2026 | 2025 | 2025 | ||||||||||||||||||
| AVERAGE BALANCES | ||||||||||||||||||||
| Assets | $ | 9,020,305 | $ | 9,070,471 | $ | 8,856,278 | ||||||||||||||
| Earning assets | 8,618,611 | 8,651,605 | 8,434,790 | |||||||||||||||||
| Investments | 1,527,070 | 1,519,175 | 1,519,177 | |||||||||||||||||
| Loans and leases | 7,022,759 | 6,953,090 | 6,798,952 | |||||||||||||||||
| Deposits | 7,191,569 | 7,421,006 | 7,333,542 | |||||||||||||||||
| Interest bearing liabilities | 5,930,767 | 5,956,902 | 5,920,255 | |||||||||||||||||
| Common shareholders’ equity | 1,292,902 | 1,261,725 | 1,141,922 | |||||||||||||||||
| Total equity | 1,335,986 | 1,306,954 | 1,208,236 | |||||||||||||||||
| INCOME STATEMENT DATA | ||||||||||||||||||||
| Net interest income | $ | 90,138 | $ | 93,295 | $ | 80,938 | ||||||||||||||
Net interest income - FTE(1) | 90,293 | 93,453 | 81,085 | |||||||||||||||||
| Provision for credit losses | 7,272 | 711 | 3,265 | |||||||||||||||||
| Noninterest income | 23,001 | 17,537 | 23,103 | |||||||||||||||||
| Noninterest expense | 54,517 | 56,557 | 53,076 | |||||||||||||||||
| Net income | 39,961 | 41,131 | 37,523 | |||||||||||||||||
| Net income available to common shareholders | 39,956 | 41,142 | 37,520 | |||||||||||||||||
| PER SHARE DATA | ||||||||||||||||||||
| Basic net income per common share | $ | 1.63 | $ | 1.67 | $ | 1.52 | ||||||||||||||
| Diluted net income per common share | 1.63 | 1.67 | 1.52 | |||||||||||||||||
| Common cash dividends declared | 0.40 | 0.40 | 0.36 | |||||||||||||||||
Book value per common share(2) | 53.10 | 52.32 | 47.29 | |||||||||||||||||
Tangible book value per common share(1) | 49.61 | 48.88 | 43.87 | |||||||||||||||||
| Market value - High | 71.98 | 67.39 | 67.77 | |||||||||||||||||
| Market value - Low | 60.30 | 56.89 | 53.23 | |||||||||||||||||
| Basic weighted average common shares outstanding | 24,276,666 | 24,391,070 | 24,546,819 | |||||||||||||||||
| Diluted weighted average common shares outstanding | 24,276,666 | 24,391,070 | 24,546,819 | |||||||||||||||||
| KEY RATIOS | ||||||||||||||||||||
| Return on average assets | 1.80 | % | 1.80 | % | 1.72 | % | ||||||||||||||
| Return on average common shareholders’ equity | 12.53 | 12.94 | 13.33 | |||||||||||||||||
| Average common shareholders’ equity to average assets | 14.33 | 13.91 | 12.89 | |||||||||||||||||
End of period tangible common equity to tangible assets(1) | 13.22 | 13.28 | 12.14 | |||||||||||||||||
Risk-based capital - Common Equity Tier 1(3) | 15.30 | 15.52 | 14.71 | |||||||||||||||||
Risk-based capital - Tier 1(3) | 16.54 | 16.79 | 16.20 | |||||||||||||||||
Risk-based capital - Total(3) | 17.80 | 18.05 | 17.46 | |||||||||||||||||
| Net interest margin | 4.24 | 4.28 | 3.89 | |||||||||||||||||
Net interest margin - FTE(1) | 4.25 | 4.29 | 3.90 | |||||||||||||||||
| Efficiency ratio: expense to revenue | 48.19 | 51.03 | 51.01 | |||||||||||||||||
Efficiency ratio: expense to revenue - adjusted(1) | 48.16 | 48.56 | 51.31 | |||||||||||||||||
| Net charge-offs to average loans and leases | 0.23 | 0.02 | 0.01 | |||||||||||||||||
| Loan and lease loss allowance to loans and leases | 2.33 | 2.30 | 2.29 | |||||||||||||||||
| Nonperforming assets to loans and leases | 1.03 | 1.10 | 0.63 | |||||||||||||||||
| March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | 2025 | ||||||||||||||||
| END OF PERIOD BALANCES | ||||||||||||||||||||
| Assets | $ | 9,113,429 | $ | 9,055,270 | $ | 9,056,691 | $ | 9,087,162 | $ | 8,963,114 | ||||||||||
| Loans and leases | 7,083,528 | 7,046,669 | 6,964,454 | 7,097,969 | 6,863,393 | |||||||||||||||
| Deposits | 7,227,596 | 7,225,575 | 7,409,819 | 7,442,669 | 7,417,765 | |||||||||||||||
| Allowance for loan and lease losses | 164,898 | 161,846 | 161,430 | 163,484 | 157,470 | |||||||||||||||
| Goodwill and intangible assets | 83,895 | 83,895 | 83,895 | 83,895 | 83,895 | |||||||||||||||
| Common shareholders’ equity | 1,277,956 | 1,274,971 | 1,236,472 | 1,198,589 | 1,161,459 | |||||||||||||||
| Total equity | 1,320,838 | 1,318,090 | 1,291,431 | 1,257,424 | 1,220,542 | |||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||
| Loans and leases past due 90 days or more | $ | 398 | $ | 460 | $ | 317 | $ | 198 | $ | 122 | ||||||||||
| Nonaccrual loans and leases | 71,652 | 76,602 | 62,264 | 71,732 | 40,540 | |||||||||||||||
| Other real estate | — | — | 120 | — | — | |||||||||||||||
| Repossessions | 1,319 | 267 | 435 | 3,549 | 2,410 | |||||||||||||||
| Equipment owned under operating leases | 46 | 49 | 56 | 62 | — | |||||||||||||||
| Total nonperforming assets | $ | 73,415 | $ | 77,378 | $ | 63,192 | $ | 75,541 | $ | 43,072 | ||||||||||
(1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio.
(2) Calculated as common shareholders’ equity divided by common shares outstanding at the end of the period.
(3) Calculated under banking regulatory guidelines.
- 5 -
| 1st SOURCE CORPORATION | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION | |||||||||||||||||||||||
| (Unaudited - Dollars in thousands) | |||||||||||||||||||||||
| March 31, | December 31, | September 30, | March 31, | ||||||||||||||||||||
| 2026 | 2025 | 2025 | 2025 | ||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||
| Cash and due from banks | $ | 67,670 | $ | 69,249 | $ | 75,316 | $ | 87,816 | |||||||||||||||
| Federal funds sold and interest bearing deposits with other banks | 51,136 | 50,608 | 138,942 | 135,003 | |||||||||||||||||||
Investment securities available-for-sale, at fair value (amortized cost of $1,583,272, $1,568,429, $1,555,564, and $1,591,072 at March 31, 2026, December 31, 2025, September 30, 2025, and March 31, 2025, respectively) | 1,529,593 | 1,522,486 | 1,495,117 | 1,501,877 | |||||||||||||||||||
| Other investments | 22,140 | 22,140 | 22,140 | 23,855 | |||||||||||||||||||
| Mortgages held for sale | 3,142 | 4,866 | 7,110 | 2,305 | |||||||||||||||||||
| Loans and leases, net of unearned discount: | |||||||||||||||||||||||
| Commercial and agricultural | 821,818 | 797,592 | 759,167 | 775,118 | |||||||||||||||||||
| Renewable energy | 713,110 | 652,799 | 603,715 | 505,413 | |||||||||||||||||||
| Auto and light truck | 831,365 | 887,876 | 924,992 | 955,945 | |||||||||||||||||||
| Medium and heavy duty truck | 264,165 | 269,749 | 280,302 | 289,837 | |||||||||||||||||||
| Aircraft | 1,073,282 | 1,086,821 | 1,095,423 | 1,118,099 | |||||||||||||||||||
| Construction equipment | 1,210,493 | 1,221,135 | 1,207,446 | 1,171,934 | |||||||||||||||||||
| Commercial real estate | 1,319,361 | 1,269,765 | 1,244,306 | 1,230,760 | |||||||||||||||||||
| Residential real estate and home equity | 735,743 | 740,777 | 726,585 | 689,101 | |||||||||||||||||||
| Consumer | 114,191 | 120,155 | 122,518 | 127,186 | |||||||||||||||||||
| Total loans and leases | 7,083,528 | 7,046,669 | 6,964,454 | 6,863,393 | |||||||||||||||||||
| Allowance for loan and lease losses | (164,898) | (161,846) | (161,430) | (157,470) | |||||||||||||||||||
| Net loans and leases | 6,918,630 | 6,884,823 | 6,803,024 | 6,705,923 | |||||||||||||||||||
| Equipment owned under operating leases, net | 6,603 | 6,964 | 7,649 | 9,864 | |||||||||||||||||||
| Premises and equipment, net | 57,973 | 58,318 | 57,852 | 54,778 | |||||||||||||||||||
| Goodwill and intangible assets | 83,895 | 83,895 | 83,895 | 83,895 | |||||||||||||||||||
| Accrued income and other assets | 372,647 | 351,921 | 365,646 | 357,798 | |||||||||||||||||||
| Total assets | $ | 9,113,429 | $ | 9,055,270 | $ | 9,056,691 | $ | 8,963,114 | |||||||||||||||
| LIABILITIES | |||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||
| Noninterest-bearing demand | $ | 1,655,736 | $ | 1,600,495 | $ | 1,633,786 | $ | 1,651,479 | |||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||
| Interest-bearing demand | 2,487,201 | 2,592,202 | 2,512,205 | 2,451,169 | |||||||||||||||||||
| Savings | 1,466,564 | 1,446,278 | 1,396,931 | 1,392,391 | |||||||||||||||||||
| Time | 1,618,095 | 1,586,600 | 1,866,897 | 1,922,726 | |||||||||||||||||||
| Total interest-bearing deposits | 5,571,860 | 5,625,080 | 5,776,033 | 5,766,286 | |||||||||||||||||||
| Total deposits | 7,227,596 | 7,225,575 | 7,409,819 | 7,417,765 | |||||||||||||||||||
| Short-term borrowings: | |||||||||||||||||||||||
| Federal funds purchased and securities sold under agreements to repurchase | 153,391 | 112,470 | 72,190 | 60,025 | |||||||||||||||||||
| Other short-term borrowings | 135,789 | 126,151 | 1,384 | 1,152 | |||||||||||||||||||
| Total short-term borrowings | 289,180 | 238,621 | 73,574 | 61,177 | |||||||||||||||||||
| Long-term debt and mandatorily redeemable securities | 35,508 | 43,330 | 42,234 | 41,210 | |||||||||||||||||||
| Subordinated notes | 58,764 | 58,764 | 58,764 | 58,764 | |||||||||||||||||||
| Accrued expenses and other liabilities | 181,543 | 170,890 | 180,869 | 163,656 | |||||||||||||||||||
| Total liabilities | 7,792,591 | 7,737,180 | 7,765,260 | 7,742,572 | |||||||||||||||||||
| SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||
Preferred stock; no par value Authorized 10,000,000 shares; none issued or outstanding | — | — | — | — | |||||||||||||||||||
Common stock; no par value Authorized 40,000,000 shares; issued 28,205,674 shares at March 31, 2026, December 31, 2025, September 30, 2025, and March 31, 2025 | 436,538 | 436,538 | 436,538 | 436,538 | |||||||||||||||||||
| Retained earnings | 1,047,027 | 1,015,160 | 983,615 | 921,717 | |||||||||||||||||||
Cost of common stock in treasury (4,136,793, 3,836,656, 3,771,570, and 3,643,063 shares at March 31, 2026, December 31, 2025, September 30, 2025, and March 31, 2025, respectively) | (164,709) | (141,950) | (137,818) | (128,912) | |||||||||||||||||||
| Accumulated other comprehensive loss | (40,900) | (34,777) | (45,863) | (67,884) | |||||||||||||||||||
| Total shareholders’ equity | 1,277,956 | 1,274,971 | 1,236,472 | 1,161,459 | |||||||||||||||||||
| Noncontrolling interests | 42,882 | 43,119 | 54,959 | 59,083 | |||||||||||||||||||
| Total equity | 1,320,838 | 1,318,090 | 1,291,431 | 1,220,542 | |||||||||||||||||||
| Total liabilities and equity | $ | 9,113,429 | $ | 9,055,270 | $ | 9,056,691 | $ | 8,963,114 | |||||||||||||||
- 6 -
| 1st SOURCE CORPORATION | ||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||
| (Unaudited - Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||||||||
| 2026 | 2025 | 2025 | ||||||||||||||||||
| Interest income: | ||||||||||||||||||||
| Loans and leases | $ | 113,423 | $ | 119,981 | $ | 113,560 | ||||||||||||||
| Investment securities, taxable | 11,704 | 10,802 | 8,153 | |||||||||||||||||
| Investment securities, tax-exempt | 307 | 316 | 277 | |||||||||||||||||
| Other | 699 | 1,887 | 1,314 | |||||||||||||||||
| Total interest income | 126,133 | 132,986 | 123,304 | |||||||||||||||||
| Interest expense: | ||||||||||||||||||||
| Deposits | 32,578 | 37,308 | 39,846 | |||||||||||||||||
| Short-term borrowings | 1,720 | 234 | 232 | |||||||||||||||||
| Subordinated notes | 995 | 1,002 | 1,014 | |||||||||||||||||
| Long-term debt and mandatorily redeemable securities | 702 | 1,147 | 1,274 | |||||||||||||||||
| Total interest expense | 35,995 | 39,691 | 42,366 | |||||||||||||||||
| Net interest income | 90,138 | 93,295 | 80,938 | |||||||||||||||||
| Provision for credit losses: | ||||||||||||||||||||
| Provision for credit losses — loans and leases | 7,010 | 695 | 2,112 | |||||||||||||||||
| Provision for credit losses — unfunded loan commitments | 262 | 16 | 1,153 | |||||||||||||||||
| Total provision for credit losses | 7,272 | 711 | 3,265 | |||||||||||||||||
| Net interest income after provision for credit losses | 82,866 | 92,584 | 77,673 | |||||||||||||||||
| Noninterest income: | ||||||||||||||||||||
| Trust and wealth advisory | 7,018 | 7,110 | 6,666 | |||||||||||||||||
| Service charges on deposit accounts | 3,354 | 3,487 | 3,071 | |||||||||||||||||
| Debit card | 4,380 | 4,528 | 4,149 | |||||||||||||||||
| Mortgage banking | 1,011 | 1,103 | 853 | |||||||||||||||||
| Insurance commissions | 2,511 | 1,730 | 2,440 | |||||||||||||||||
| Equipment rental | 589 | 650 | 899 | |||||||||||||||||
| Losses on investment securities available-for-sale | — | (5,805) | — | |||||||||||||||||
| Other | 4,138 | 4,734 | 5,025 | |||||||||||||||||
| Total noninterest income | 23,001 | 17,537 | 23,103 | |||||||||||||||||
| Noninterest expense: | ||||||||||||||||||||
| Salaries and employee benefits | 32,821 | 33,432 | 32,115 | |||||||||||||||||
| Net occupancy | 3,548 | 3,380 | 3,224 | |||||||||||||||||
| Furniture and equipment | 1,462 | 1,857 | 1,347 | |||||||||||||||||
| Data processing | 7,573 | 7,565 | 7,291 | |||||||||||||||||
| Depreciation – leased equipment | 454 | 521 | 718 | |||||||||||||||||
| Professional fees | 1,575 | 2,183 | 1,668 | |||||||||||||||||
| FDIC and other insurance | 1,449 | 1,461 | 1,440 | |||||||||||||||||
| Business development and marketing | 1,903 | 2,200 | 1,925 | |||||||||||||||||
| Other | 3,732 | 3,958 | 3,348 | |||||||||||||||||
| Total noninterest expense | 54,517 | 56,557 | 53,076 | |||||||||||||||||
| Income before income taxes | 51,350 | 53,564 | 47,700 | |||||||||||||||||
| Income tax expense | 11,389 | 12,433 | 10,177 | |||||||||||||||||
| Net income | 39,961 | 41,131 | 37,523 | |||||||||||||||||
| Net (income) loss attributable to noncontrolling interests | (5) | 11 | (3) | |||||||||||||||||
| Net income available to common shareholders | $ | 39,956 | $ | 41,142 | $ | 37,520 | ||||||||||||||
| Per common share: | ||||||||||||||||||||
| Basic net income per common share | $ | 1.63 | $ | 1.67 | $ | 1.52 | ||||||||||||||
| Diluted net income per common share | $ | 1.63 | $ | 1.67 | $ | 1.52 | ||||||||||||||
| Basic weighted average common shares outstanding | 24,276,666 | 24,391,070 | 24,546,819 | |||||||||||||||||
| Diluted weighted average common shares outstanding | 24,276,666 | 24,391,070 | 24,546,819 | |||||||||||||||||
- 7 -
| 1st SOURCE CORPORATION | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| INTEREST RATES AND INTEREST DIFFERENTIAL | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited - Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | March 31, 2025 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Average Balance | Interest Income/Expense | Yield/ Rate | Average Balance | Interest Income/Expense | Yield/ Rate | Average Balance | Interest Income/Expense | Yield/ Rate | |||||||||||||||||||||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investment securities available-for-sale: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Taxable | $ | 1,493,065 | $ | 11,704 | 3.18 | % | $ | 1,483,960 | $ | 10,802 | 2.89 | % | $ | 1,488,005 | $ | 8,153 | 2.22 | % | |||||||||||||||||||||||||||||||||||
Tax exempt(1) | 34,005 | 387 | 4.62 | % | 35,215 | 398 | 4.48 | % | 31,172 | 349 | 4.54 | % | |||||||||||||||||||||||||||||||||||||||||
| Mortgages held for sale | 4,930 | 75 | 6.17 | % | 5,228 | 78 | 5.92 | % | 2,409 | 39 | 6.57 | % | |||||||||||||||||||||||||||||||||||||||||
Loans and leases, net of unearned discount(1) | 7,022,759 | 113,423 | 6.55 | % | 6,953,090 | 119,979 | 6.85 | % | 6,798,952 | 113,596 | 6.78 | % | |||||||||||||||||||||||||||||||||||||||||
| Other investments | 63,852 | 699 | 4.44 | % | 174,112 | 1,887 | 4.30 | % | 114,252 | 1,314 | 4.66 | % | |||||||||||||||||||||||||||||||||||||||||
Total earning assets(1) | 8,618,611 | 126,288 | 5.94 | % | 8,651,605 | 133,144 | 6.11 | % | 8,434,790 | 123,451 | 5.94 | % | |||||||||||||||||||||||||||||||||||||||||
| Cash and due from banks | 57,339 | 75,004 | 64,009 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for loan and lease losses | (163,666) | (162,941) | (157,318) | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other assets | 508,021 | 506,803 | 514,797 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Total assets | $ | 9,020,305 | $ | 9,070,471 | $ | 8,856,278 | |||||||||||||||||||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing deposits | $ | 5,605,444 | $ | 32,578 | 2.36 | % | $ | 5,783,353 | $ | 37,308 | 2.56 | % | $ | 5,745,134 | $ | 39,846 | 2.81 | % | |||||||||||||||||||||||||||||||||||
| Short-term borrowings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Securities sold under agreements to repurchase | 53,514 | 91 | 0.69 | % | 59,330 | 121 | 0.81 | % | 58,232 | 104 | 0.72 | % | |||||||||||||||||||||||||||||||||||||||||
| Other short-term borrowings | 173,524 | 1,629 | 3.81 | % | 13,028 | 113 | 3.44 | % | 18,450 | 128 | 2.81 | % | |||||||||||||||||||||||||||||||||||||||||
| Subordinated notes | 58,764 | 995 | 6.87 | % | 58,764 | 1,002 | 6.76 | % | 58,764 | 1,014 | 7.00 | % | |||||||||||||||||||||||||||||||||||||||||
Long-term debt and mandatorily redeemable securities | 39,521 | 702 | 7.20 | % | 42,427 | 1,147 | 10.73 | % | 39,675 | 1,274 | 13.02 | % | |||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 5,930,767 | 35,995 | 2.46 | % | 5,956,902 | 39,691 | 2.64 | % | 5,920,255 | 42,366 | 2.90 | % | |||||||||||||||||||||||||||||||||||||||||
Noninterest-bearing deposits | 1,586,125 | 1,637,653 | 1,588,408 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Other liabilities | 167,427 | 168,962 | 139,379 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Shareholders’ equity | 1,292,902 | 1,261,725 | 1,141,922 | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling interests | 43,084 | 45,229 | 66,314 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 9,020,305 | $ | 9,070,471 | $ | 8,856,278 | |||||||||||||||||||||||||||||||||||||||||||||||
| Less: Fully tax-equivalent adjustments | (155) | (158) | (147) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/margin (GAAP-derived)(1) | $ | 90,138 | 4.24 | % | $ | 93,295 | 4.28 | % | $ | 80,938 | 3.89 | % | |||||||||||||||||||||||||||||||||||||||||
Fully tax-equivalent adjustments | 155 | 158 | 147 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income/margin - FTE(1) | $ | 90,293 | 4.25 | % | $ | 93,453 | 4.29 | % | $ | 81,085 | 3.90 | % | |||||||||||||||||||||||||||||||||||||||||
| (1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
- 8 -
| 1st SOURCE CORPORATION | ||||||||||||||
| RECONCILIATION OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||
| (Unaudited - Dollars in thousands, except per share data) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||
| 2026 | 2025 | 2025 | ||||||||||||
| Calculation of Net Interest Margin | ||||||||||||||
| (A) | Interest income (GAAP) | $ | 126,133 | $ | 132,986 | $ | 123,304 | |||||||
| Fully tax-equivalent adjustments: | ||||||||||||||
| (B) | – Loans and leases | 75 | 76 | 75 | ||||||||||
| (C) | – Tax exempt investment securities | 80 | 82 | 72 | ||||||||||
| (D) | Interest income – FTE (A+B+C) | 126,288 | 133,144 | 123,451 | ||||||||||
| (E) | Interest expense (GAAP) | 35,995 | 39,691 | 42,366 | ||||||||||
| (F) | Net interest income (GAAP) (A-E) | 90,138 | 93,295 | 80,938 | ||||||||||
| (G) | Net interest income - FTE (D-E) | 90,293 | 93,453 | 81,085 | ||||||||||
| (H) | Annualization factor | 4.056 | 3.967 | 4.056 | ||||||||||
| (I) | Total earning assets | $ | 8,618,611 | $ | 8,651,605 | $ | 8,434,790 | |||||||
| Net interest margin (GAAP-derived) (F*H)/I | 4.24 | % | 4.28 | % | 3.89 | % | ||||||||
| Net interest margin – FTE (G*H)/I | 4.25 | % | 4.29 | % | 3.90 | % | ||||||||
| Calculation of Efficiency Ratio | ||||||||||||||
| (F) | Net interest income (GAAP) | $ | 90,138 | $ | 93,295 | $ | 80,938 | |||||||
| (G) | Net interest income – FTE | 90,293 | 93,453 | 81,085 | ||||||||||
| (J) | Plus: noninterest income (GAAP) | 23,001 | 17,537 | 23,103 | ||||||||||
| (K) | Less: gains/losses on investment securities and partnership investments | (586) | 4,919 | (1,427) | ||||||||||
| (L) | Less: depreciation – leased equipment | (454) | (521) | (718) | ||||||||||
| (M) | Total net revenue (GAAP) (F+J) | 113,139 | 110,832 | 104,041 | ||||||||||
| (N) | Total net revenue – adjusted (G+J–K–L) | 112,254 | 115,388 | 102,043 | ||||||||||
| (O) | Noninterest expense (GAAP) | 54,517 | 56,557 | 53,076 | ||||||||||
| (L) | Less:depreciation – leased equipment | (454) | (521) | (718) | ||||||||||
| (P) | Noninterest expense – adjusted (O–L) | 54,063 | 56,036 | 52,358 | ||||||||||
| Efficiency ratio (GAAP-derived) (O/M) | 48.19 | % | 51.03 | % | 51.01 | % | ||||||||
| Efficiency ratio – adjusted (P/N) | 48.16 | % | 48.56 | % | 51.31 | % | ||||||||
| End of Period | ||||||||||||||
| March 31, | December 31, | March 31, | ||||||||||||
| 2026 | 2025 | 2025 | ||||||||||||
| Calculation of Tangible Common Equity-to-Tangible Assets Ratio | ||||||||||||||
| (Q) | Total common shareholders’ equity (GAAP) | $ | 1,277,956 | $ | 1,274,971 | $ | 1,161,459 | |||||||
| (R) | Less: goodwill and intangible assets | (83,895) | (83,895) | (83,895) | ||||||||||
| (S) | Total tangible common shareholders’ equity (Q–R) | $ | 1,194,061 | $ | 1,191,076 | $ | 1,077,564 | |||||||
| (T) | Total assets (GAAP) | 9,113,429 | 9,055,270 | 8,963,114 | ||||||||||
| (R) | Less: goodwill and intangible assets | (83,895) | (83,895) | (83,895) | ||||||||||
| (U) | Total tangible assets (T–R) | $ | 9,029,534 | $ | 8,971,375 | $ | 8,879,219 | |||||||
| Common equity-to-assets ratio (GAAP-derived) (Q/T) | 14.02 | % | 14.08 | % | 12.96 | % | ||||||||
| Tangible common equity-to-tangible assets ratio (S/U) | 13.22 | % | 13.28 | % | 12.14 | % | ||||||||
| Calculation of Tangible Book Value per Common Share | ||||||||||||||
| (Q) | Total common shareholders’ equity (GAAP) | $ | 1,277,956 | $ | 1,274,971 | $ | 1,161,459 | |||||||
| (V) | Actual common shares outstanding | 24,068,881 | 24,369,018 | 24,562,611 | ||||||||||
| Book value per common share (GAAP-derived) (Q/V)*1000 | $ | 53.10 | $ | 52.32 | $ | 47.29 | ||||||||
| Tangible common book value per share (S/V)*1000 | $ | 49.61 | $ | 48.88 | $ | 43.87 | ||||||||
The NASDAQ Stock Market National Market Symbol: “SRCE” (CUSIP #336901 10 3)
Please contact us at shareholder@1stsource.com
- 9 -
FAQ
How did 1st Source Corporation (SRCE) perform in Q1 2026?
1st Source reported Q1 2026 net income of $39.96 million, a 6.49% increase from $37.52 million a year earlier. Diluted EPS rose to $1.63 from $1.52, supported by higher loans, improved net interest margin, and contained expenses.
What happened to 1st Source Corporation’s net interest margin in Q1 2026?
Net interest margin for Q1 2026 improved to 4.24% (4.25% on a tax‑equivalent basis) from 3.89%–3.90% a year earlier. The increase reflected higher average loan and lease balances and better yields on investments, partially offset by changes in loan yields and borrowing costs.
How did credit quality and provisions change for 1st Source (SRCE) in Q1 2026?
Credit costs rose, with a $7.27 million provision for credit losses versus $3.27 million a year ago and net charge‑offs of $3.96 million. The allowance reached 2.33% of loans and leases, and nonperforming assets were 1.03% of loans and leases at March 31, 2026.
What dividend did 1st Source Corporation declare for Q1 2026?
The board approved a quarterly cash dividend of $0.43 per common share, up three cents from the prior rate and 13.16% higher than the dividend declared a year earlier. It is payable on May 15, 2026 to shareholders of record on May 5, 2026.
What were 1st Source Corporation’s loan and deposit trends in Q1 2026?
Average loans and leases reached $7.02 billion, up 3.29% year over year and 1.00% from the prior quarter, led by several commercial portfolios. Average deposits were $7.19 billion, down modestly overall, while average deposits excluding brokered balances increased year over year.