Earnings, growth and capital strength at 1st Source (SRCE)
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
1st Source Corporation provides an investor presentation highlighting its community banking, specialty finance, and renewable energy lending businesses along with recent financial performance. Total assets were $9.1 billion and total deposits $7.2 billion as of 2026 year-to-date.
Average loans and leases reached $7.0 billion in 2026 year-to-date, with a fully tax-equivalent yield of 6.55%. Net income was $158 million in 2025 and $40 million for 2026 year-to-date, equal to diluted earnings per share of $6.41 for 2025 and $1.63 for 2026 year-to-date.
The bank reports a net interest margin on a fully tax-equivalent basis of 4.25% for 2026 year-to-date, noninterest income of $22.5 million representing about 20% of total revenue, and an efficiency ratio of 48.2%. Capital remains strong, with a tangible common equity-to-tangible assets ratio of 13.22% and a Tier 1 leverage ratio of 17.80% for 2026 year-to-date.
Positive
- None.
Negative
- None.
8-K Event Classification
2 items: 7.01, 9.01
2 items
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Total assets: $9.1B
Total deposits: $7.2B
Net income 2025: $158M
+5 more
8 metrics
Total assets
$9.1B
2026 year-to-date total assets
Total deposits
$7.2B
2026 year-to-date total deposits
Net income 2025
$158M
Full-year 2025 net income available to common shareholders
Net income 2026 YTD
$40M
2026 year-to-date net income available to common shareholders
Diluted EPS
$6.41 and $1.63
Diluted EPS for 2025 and 2026 year-to-date, respectively
Net interest margin (FTE)
4.25%
Net interest margin fully tax-equivalent, 2026 year-to-date
Tangible equity ratio
13.22%
Tangible common equity-to-tangible assets, 2026 year-to-date
Tangible book value per share
$49.61
Tangible book value per common share, 2026 year-to-date
Key Terms
non-GAAP financial measures, net interest margin, tangible common equity-to-tangible assets ratio, pre-tax pre-provision income, +2 more
6 terms
non-GAAP financial measures financial
"However, certain non-GAAP financial measures are used by management to evaluate and measure the Company’s performance."
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
net interest margin financial
"These include taxable-equivalent net interest income ... and net interest margin (including its individual components)."
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.
tangible common equity-to-tangible assets ratio financial
"These include ... the efficiency ratio, tangible common equity-to-tangible assets ratio, pre-tax pre-provision income and tangible book value per common share."
pre-tax pre-provision income financial
"These include ... pre-tax pre-provision income and tangible book value per common share."
Pre-tax pre-provision income is a banking measure of how much a lender earns from its normal operations before subtracting taxes and the money set aside to cover bad loans. Think of it as a car’s engine power measured before adding safety equipment and fuel costs: it shows the underlying earning strength and how much cushion the bank has to absorb future losses or support dividends. Investors use it to compare core profitability across banks and to judge resilience during credit stress.
efficiency ratio financial
"These include taxable-equivalent net interest income ..., net interest margin ..., the efficiency ratio, tangible common equity-to-tangible assets ratio..."
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.
Tier 1 leverage ratio financial
"Tier 1 Leverage Ratio 16.10% 16.25% 17.08% 18.05% 17.80%"
Tier 1 leverage ratio measures a bank’s core capital — the money that can absorb losses — as a share of its total assets, showing how much of its balance sheet is funded by real loss-absorbing capital rather than borrowed money. Investors use it like a safety gauge: a higher ratio means a bigger cushion against shocks and lower risk of insolvency, similar to how a thicker spare tire reduces the chance of being stranded.
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): May 1, 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 7.01 Regulation FD Disclosure.
The executive officers of 1st Source Corporation intend to use the material filed herewith, in whole or in part, in one or more meetings with investors and analysts. A copy of the investor presentation is attached hereto as Exhibit 99.1.
1st Source Corporation does not intend for this Item 7.01 or Exhibit 99.1 to be treated as “filed” for purposes of the Securities Exchange Act of 1934, as amended, or incorporated into its filings under the Securities Act of 1933, as amended.
ITEM 9.01 Financial Statements and Exhibits.
The following exhibit shall not be deemed as “filed” for purposes of the Securities Exchange Act of 1934, as amended.
(d) Exhibit:
99.1 | 1st Source Corporation Investor Presentation | |||||||
| 104 | Cover Page Interactive Data File (Embedded within the InLine XBRL document). | |||||||
| 1st SOURCE CORPORATION | ||||||||
| (Registrant) | ||||||||
| Date: May 1, 2026 | /s/ BRETT A. BAUER | |||||||
| Brett A. Bauer | ||||||||
| Treasurer and Chief Financial Officer | ||||||||
| Principal Accounting Officer | ||||||||
INVESTOR PRESENTATION 1st Quarter 2026 NASDAQ: SRCE | www.1stsource.com
DISCLOSURES Forward-Looking Statements Except for historical information, the matters discussed may include “forward-looking statements.” Those statements 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. The audience is 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. Please refer to our press releases, Form 10-Qs, and 10-Ks concerning factors that could cause actual results to differ materially from any forward-looking statements of which we undertake no obligation to publicly update or revise. 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, pre-tax pre-provision income and tangible book value per common share. Management believes that these measures provide users of the Company’s financial information 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. See the slides titled “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. 2page
CORPORATE OVERVIEW Founded in 1863 $9.1 billion Community Bank with International Reach headquartered in South Bend, Indiana Community Banking Locations throughout northern Indiana, greater Indianapolis, and southwestern Michigan Business and personal banking, payment services, lending, mortgage, and leasing Investment management, wealth advisory, estate planning, and retirement planning services Business and consumer insurance sales Renewable Energy Financing National footprint Construction loans, permanent loans, and tax equity investments Community solar, commercial and industrial, small utility scale, university, and municipal projects Energy storage solutions Specialty Finance National and international footprint Auto rental and leasing Truck rental and leasing Construction machinery Corporate and personal aircraft 3page
MISSION & VISION 4page Mission To help our clients achieve security, build wealth and realize their dreams by offering straight talk, sound advice and keeping their best interests in mind for the long-term. Vision Offer our clients the highest quality service Be the financial institution of choice in each market we serve Remain independent and nurture pride of ownership among all 1st Source colleagues Support a proud family of colleagues who personify the 1st Source spirit of partnership Achieve long-term, superior financial results
MARKET AREA 5page Specialty Finance Loans & Leases $3.38 billion Community Bank Loans & Leases $3.71 billion
BUSINESS MIX Loans & Leases 6page COMMUNITY BANKING 52% SPECIALTY FINANCE 48% Business 77% Personal 23%
COMMUNITY BANKING 78 Banking Centers 98 Twenty-four-hour ATMs 9 Trust & Wealth Advisory locations with approximately $6.3 billion of assets under management 13 1st Source Insurance offices 3 Loan Production offices 7page In person OnlineOver the phone Mobile
8page RENEWABLE ENERGY FINANCING Our Renewable Energy Financing Division provides sponsors and developers with one-stop-shop financing by providing construction loans, permanent loans, and tax equity investments to community solar, commercial and industrial, small utility scale, university, and municipal projects. Loans and investments are made across the contiguous United States with a focus in the Northeast and Midwest. Financed solar projects positively impact communities across our growing portfolio through energy cost savings and renewable energy generation and energy storage solutions. Environmental Impact The estimated aggregate power capacity of financed projects avoids 444,676 metric tons of carbon greenhouse emissions annually.* • Over $713 million in loans and leases outstanding as of March 31, 2026 • Over $207 million invested to date in tax equity partnership investments as of March 31, 2026 Equivalent Emissions Avoided Annually* 50,036,628 43,681,288 493,952,184 5,887 59,719 92,668 2,465 1,029,518 * Source: https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator as of April 13, 2026
SPECIALTY FINANCE GROUP Auto and Light Truck Division Auto/light truck division provides financing for automobile rental and commercial auto leasing companies, and light truck rental and leasing companies. Medium and Heavy Duty Truck Division The medium and heavy duty truck division finances highway tractors and trailers and delivery trucks for the commercial trucking industry and trash and recycling equipment for municipalities and private businesses as well as equipment for landfills. Construction Equipment Division Construction equipment division provides financing for infrastructure projects (i.e., asphalt and concrete plants, bulldozers, excavators, cranes, and loaders, etc.) Aircraft Division Aircraft division provides financing primarily for new and pre-owned general aviation aircraft (including helicopters) for private and corporate users, some for aircraft distributors and dealers, air charter operators, air cargo carriers, and other aircraft operators. See Appendix for NAICS industry detail. 9page
105.3 138.3 153.3 154.0 0 25 50 75 100 125 150 175 Q1 23 Q1 24 Q1 25 Q1 26 Zelle Transactions (000s)7 68.2 71.1 74.8 76.7 45 50 55 60 65 70 75 80 Q1 23 Q1 24 Q1 25 Q1 26 Mobile Users (000s)2 Zelle (P2P) HIGHLY RATED, FEATURE-RICH MOBILE APP Budget & Account Aggregation Other Services: Balance & Transfers, Pay Bills / eBills, Mobile Deposit, A2A Transfers Credit Score Mgmt4 Debit Card Control Digital Wallet5 1 “Digital Adoption” is based on the primary deposit account holders’ usage of our online/mobile banking platforms 2 “Mobile Users” is based on activity within the Mobile App within the last 90 days 3 “Service Usage” are the number of distinct services (presented on the left) used by a digital user 4 Launched service in May 2022 5 1st Source Debit Cards can be loaded into Apple Pay, Samsung Pay & Google Wallet Apps 6 Based on Apple’s App Store rating at quarter-end 7 Some previously reported quarterly transactions have been modified. 8 Includes a one-time digital wallet usage normalization made in Q4 ‘25 page 10 12K RATINGS 4.8 12K RATINGS6 63% 66% 69% 71% 13% 12% 11% 10% 24% 22% 20% 19% 0% 25% 50% 75% 100% Q1 23 Q1 24 Q1 25 Q1 26 Digital Adoption1 Mobile & Online Online Only Non-Digital 31% 32% 35% 27% 23% 23% 23% 22% 25% 25% 23% 26% 21% 20% 19% 25% 0% 25% 50% 75% 100% Q1 23 Q1 24 Q1 25 Q1 26 Service Usage3,8 4+ 3 2 1
page 11 INSTANT PAYMENTS Launched instant payment systems Real Time Payments (RTP) and FedNow over three phases in 2023: • RTP - Receive & Send - May ‘23 • FedNow - Receive & Send - July ‘23 Send capabilities for instant payments restricted to business clients only Since initial launch, 1st Source received or sent over $674 million through RTP and FedNow channels, as well as surpassed 446,000 total transactions. 217 283 519 726 1,046 1,101 1,485 1,708 1,884 2,040 - 500 1,000 1,500 2,000 2,500 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Total Transaction Volume Sent 28,758 31,734 35,858 38,120 38,706 37,501 42,896 45,078 47,883 50,237 - 10,000 20,000 30,000 40,000 50,000 60,000 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Total Transaction Volume Received
AN EXPERIENCED AND PROVEN TEAM Executive Team 6 executives with an average 36 years each of banking experience and 29 years with 1st Source Business Banking Officers 39 business banking officers with an average 20 years each of lending experience and with 1st Source from 1 to 33 years Specialty Finance Group Officers 23 specialty finance officers with an average 25 years each of lending experience and with 1st Source from 1 to 35 years 12page
PERFORMANCE CLIENT Indiana SBA Community Lender Gold Award 2013-2025 #1 SBA Lender Headquartered in State of Indiana with assets of less than $10 billion #1 Deposit share in our 16 contiguous county market #4 Lender of Community Development Loans (Total Dollars) in State of Indiana by Banks Headquartered in Indiana. 2024 CRA data by FFIEC. #2 Lender of Community Development Loans (# of Loans) in State of Indiana by Banks Headquartered in Indiana. 2024 CRA data by FFIEC. #33 On Monitor Magazine’s 2025 Top 100 Largest Equipment Finance/Leasing Companies in the U.S. #20 On Monitor Magazine’s 2025 Top 50 Bank Equipment Finance Companies in the U.S. 2024 Commitment to Community Award Indiana Bankers Association - $3 Billion or more in assets 13page
14page PERFORMANCE LEADERSHIP 2025 Business Reporter Best Banks in America 2024 US News & World Report Best Companies to Work For – Midwest 2025 Leaders in Banking Excellence Award, the Indiana Bankers Association’s highest honor Christopher J. Murphy III Executive Chairman, 1st Source Corporation & 1st Source Bank Indianapolis Business Journal Media 250 Most Influential Business Leaders Christopher J. Murphy III Executive Chairman, 1st Source Corporation & 1st Source Bank Tracy D. Graham & Isaac P. Torres Board Members Top 50 Women Leaders of Ohio for 2025 Top 50 Women Leaders of Columbus, Ohio for 2025 Melody Birmingham Board Member 2024 Woman of Influence Award by South Bend Regional Chamber of Commerce Andrea G. Short President and CEO, 1st Source Corporation CEO, 1st Source Bank 2026 Forbes’ • America’s Best Banks • America’s Best Midsize Employers 2026 Fortune • America’s Most Innovative Companies 2025 Forbes’ • World’s Best Banks • Best Employers for Veterans • Best-In-State Banks • Best Employers for New Grads
FINANCIAL REVIEW
16page 6426 6121 6201 6467 6504 285 836 918 915 688 0.38% 1.77% 2.34% 2.11% 1.84% 0.25% 1.25% 2.25% 3.25% 4.25% 0 2,375 4,750 7,125 9,500 2022 2023 2024 2025 2026 YTD Core Deposits ($MM) Non-core Deposits ($MM) Effective Rate on Deposits (%) CORE DEPOSIT FRANCHISE TOTAL AVERAGE DEPOSITS *Non-core deposits include CDs over $250,000, brokered CDs, and national listing service CDs. 6957 7119 7382 7192 6711
17page Time 22% Noninterest- bearing demand 23% Interest- bearing demand 35% Savings 20% Public Fund 19% Brokered 4% Business 28% Consumer (1) 49% (1) Includes business customer certificates of deposit which were immaterial Approximately 228,000 deposit accounts with an average balance of $31,700. Owner ClassificationAccount Type Diversified Deposit Mix End of Period Balances
18page $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 June 19 June 20 June 21 June 22 June 23 June 24 June 25 1st Source Lake City Bank Chase Horizon Bank Fifth Third DEPOSIT MARKET SHARE 16 COUNTY CONTIGUOUS MARKET* Leading Market Share in Community Banking Markets ($000) Data as of June 2025 – FDIC (via S&P Global Market Intelligence) *Includes Allen, DeKalb, Elkhart, Fulton, Huntington, Kosciusko, LaPorte, Marshall, Porter, Pulaski, St. Joseph, Starke, Wells, and Whitley counties in the State of Indiana, and Berrien and Cass counties in the State of Michigan. 2025 ______14.18% __10.28% _____________9.13% _____4.71% ________4.68%
19page 5567 6204 6598 6935 7023 4.74% 6.25% 6.84% 6.79% 6.55% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 4500 5500 6500 7500 2022 2023 2024 2025 2026 YTD Loans & Leases ($MM) Yield on Loans & Leases - FTE (%)* GROWING LOAN PORTFOLIO Total Average Loans & Leases * See “Reconciliation of non-GAAP Financial Measures” in Appendix.
20page Commercial Real Estate 18% Residential Real Estate 11% Consumer 2% Medium and Heavy Duty Truck 4% Auto and Light Truck 12%Construction Equipment 17% Aircraft 15% Commercial 21% DIVERSIFIED LOAN PORTFOLIO 2026 Average Loans by Type
21page 2.32% 2.26% 2.27% 2.30% 2.33% 2022 2023 2024 2025 2026 YTD STRONG CREDIT QUALITY % of Net Loans and Leases Loan & Lease Loss Allowance 0.45% 0.37% 0.46% 1.10% 1.03% 2022 2023 2024 2025 2026 YTD Low Nonperforming Assets 0.03% -0.04% 0.09% 0.06% 0.23% 2022 2023 2024 2025 2026 YTD Limited Losses Nonperforming Assets Net Charge-Offs (Recoveries) Solid Reserves
22page 120.5 124.9 132.6 158.3 37.5 40.0 4.84 5.03 5.36 6.41 1.52 1.63 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00 $0 $25 $50 $75 $100 $125 $150 $175 2022 2023 2024 2025 2025 YTD 2026 YTD Net Income ($MM) EPCS (Diluted) NET INCOME & EARNINGS PER SHARE
23page 170.0 167.6 183.5 216.9 51.0 58.6 $0 $50 $100 $150 $200 $250 2022 2023 2024 2025 2025 YTD 2026 YTD PRE-TAX, PRE-PROVISION INCOME ($MM) *See “Reconciliation of non-GAAP Financial Measures” in Appendix.
24page 1.14% 1.53% 1.49% 1.48% 1.52% 1.76% 1.80% 9.41% 13.07% 13.81% 13.48% 12.54% 13.16% 12.53% 10.42% 14.40% 15.28% 14.82% 13.62% 14.14% 13.40% 6.00% 10.00% 14.00% 18.00% 0.80% 1.40% 2.00% 2.60% 3.20% 2020 2021 2022 2023 2024 2025 2026 YTD R O A E an d R O A TE R O A A Return on Average Assets Return on Average Common Equity Return on Average Tangible Common Equity** INCOME PERFORMANCE METRICS 1st SOURCE PERFORMS WELL AGAINST PEERS WHILE MAINTAINING STRONG CAPITAL LEVELS *Peer group data as of December 31, 2025. ** See “Reconciliation of non-GAAP Financial Measures” in Appendix. YTD Median Peer Data* MidwestNational C&I 14.14%14.12%ROATE 10.80%10.26%ROAE 1.33%1.20%ROAA
25page 264.1 279.4 301.4 348.8 81.1 90.3 3.45% 3.51% 3.64% 4.07% 3.90% 4.25% 2.25% 3.25% 4.25% 5.25% $0 $75 $150 $225 $300 $375 2022 2023 2024 2025 2025 YTD 2026 YTD Net Interest Income ($MM) Net Interest Margin (%) NET INTEREST MARGIN (FTE)* * See “Reconciliation of non-GAAP Financial Measures” in Appendix.
26page Trust, Wealth Advisory, and Retirement Plan Services 31% Other 18% Debit Card 19% Service Charges on Deposit Accounts 15% Insurance Commissions 11% Mortgage Banking 5% Equipment Rental 1% DIVERSE SOURCES OF NONINTEREST INCOME Fair Value of Assets Under Management of $6.3B * Note: Equipment rental income is shown net of leased equipment depreciation. See “Reconciliation of non-GAAP Financial Measures” in Appendix . Noninterest Income Composition 2026 = $22.5MM* 20% of Total Revenue*
27page 174.7 194.6 199.5 214.4 52.4 54.1 51.1% 54.2% 51.9% 49.3% 51.3% 48.2% 35.0% 45.0% 55.0% 65.0% $0.0 $50.0 $100.0 $150.0 $200.0 $250.0 2022 2023 2024 2025 2025 YTD 2026 YTD Noninterest Expense ($MM)* Efficiency - Adjusted (%)* OPERATING EXPENSES * Note: Noninterest expense is shown net of leased equipment depreciation. See “Reconciliation of non-GAAP Financial Measures” in Appendix.
16.10% 16.25% 17.08% 18.05% 17.80% 2022 2023 2024 2025 2026 YTD 28page 12.63% 13.26% 14.05% 14.69% 14.90% 2022 2023 2024 2025 2026 YTD STRONG CAPITAL POSITION Tier 1 Leverage Ratio 14.84% 14.99% 15.82% 16.79% 16.54% 2022 2023 2024 2025 2026 YTD Tier 1 Risk Based Ratio Total Risk Based Capital Ratio Tangible Common Equity / Tangible Assets* 9.45% 10.48% 11.61% 13.28% 13.22% 2022 2023 2024 2025 2026 YTD 5% Well Capitalized 8% Well Capitalized 10% Well Capitalized * See “Reconciliation of non-GAAP Financial Measures” in Appendix. Note: There were 338,356 shares of treasury stock repurchased in Q1 of 2026
29page 17.80% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 1st Source Corp Well-Capitalized LONG HISTORY OF CONSERVATIVE CAPITAL Total Capital (To Risk-Weighted Assets) 10% Well Capitalized
30page $29.18 $31.62 $33.64 $31.63 $37.06 $41.89 $48.88 $49.61 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 $55.00 $60.00 2019 2020 2021 2022 2023 2024 2025 2026 YTD TANGIBLE BOOK VALUE PER COMMON SHARE* * See “Reconciliation of non-GAAP Financial Measures” in Appendix.
31page 0.72 0.76 0.96 1.10 1.13 1.21 1.26 1.30 1.40 1.52 0.83 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $1.20 $1.40 $1.60 $1.80 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 YTD COMMON DIVIDENDS PER SHARE 38 YEARS OF CONSECUTIVE DIVIDEND GROWTH
32page DELIVERING RETURNS TO SHAREHOLDERS Value of $100 Invested in 1st Source since 1971 Inception with Dividends Reinvested vs. Total Return of Stock Indices
33page DELIVERING RETURNS TO SHAREHOLDERS December 31, 2007 – April 17, 2026 321.10% 79.35% 80.95% 109.17% 71.18% (100.00) (50.00) 0.00 50.00 100.00 150.00 200.00 250.00 300.00 350.00 Pr ic e C ha ng e (% ) 1st Source Corp (SRCE) KBW NASDAQ Bank NASDAQ Bank S&P 500 Bank KBW NASDAQ Regional Bank
PERFORMANCE FINANCIAL 2019-2026 KBW Bank Honor Roll Eighth consecutive year named among top 5% of banks with more than $500 million in total assets and ten consecutive years of increased earnings per share 2024 S&P Global Market Intelligence’s Top 50 Community Banks #25 with $3B to $10B in assets 2025 Piper Sandler Sm-All Stars (third year in a row) One of 30 banks/thrifts identified as a top performing small-cap bank in the country Bank Performance Scorecard by Bank Director Magazine #19 Overall in the top 25 Banks #8 Of $5 billion up to $50 billion in assets 5-Star Superior Rating – BauerFinancial 38 Years of consecutive dividend growth 34page NCIAL
INVESTMENT CONSIDERATIONS Consistent and superior financial performance with a focus on long-term earnings per share and tangible book value growth Experienced and proven team with significant investment in bank Diversification of product mix and geography with asset generation capability Leading market share in community banking markets Stable credit quality, strongly reserved Strong capital and liquidity position and 38 consecutive years of dividend growth 35page
CONTACT INFORMATION Christopher J. Murphy III Executive Chairman of the Board 1st Source Corporation and 1st Source Bank (574) 235-2711 Murphy-c@1stsource.com Andrea G. Short President and CEO, 1st Source Corporation CEO, 1st Source Bank (574) 235-2348 shorta@1stsource.com Brett A. Bauer CFO and Treasurer (574) 235-2638 bauerb@1stsource.com 36page
APPENDIX
CONSOLIDATED BALANCE SHEET 38page (Dollars in millions) 2022 2023 2024 2025 2026 YTD Cash and cash equivalents 123$ 130$ 125$ 120$ 119$ Investment securities and other investments* 1,800 1,648 1,560 1,545 1,552 Loans and leases, net of unearned discount 6,015 6,520 6,857 7,051 7,086 Allowance for loan and lease losses (139) (148) (155) (162) (165) Other assets 540 578 545 501 521 Total assets 8,339$ 8,728$ 8,932$ 9,055$ 9,113$ Noninterest-bearing deposits 1,998$ 1,656$ 1,639$ 1,600$ 1,656$ Interest-bearing deposits 4,930 5,383 5,591 5,625 5,572 Total deposits 6,928 7,039 7,230 7,225 7,228 Total borrowings 321 419 347 341 383 Other liabilities 166 202 173 171 181 Total shareholders' equity 864 989 1,111 1,275 1,278 Noncontrolling interests 60 79 71 43 43 Total equity 924 1,068 1,182 1,318 1,321 Total liabilities and equity 8,339$ 8,728$ 8,932$ 9,055$ 9,113$ *All investment securities are available for sale. The Company does not hold any held to maturity investment securities.
CONSOLIDATED INCOME STATEMENT 39page (Dollars in millions) 2022 2023 2024 2025 2025 YTD 2026 YTD Net interest income 263$ 279$ 301$ 348$ 81$ 90$ Provision for credit losses 13 6 12 13 3 7 Noninterest income* 81 84 82 83 22 22 Noninterest expense* 174 195 200 214 52 54 Income before income taxes 157 162 171 204 48 51 Income tax expense 36 37 38 46 10 11 Net income 121 125 133 158 38 40 Net income attributable to noncontrolling interests - - - - - - Net income available to common shareholders 121$ 125$ 133$ 158$ 38$ 40$ Diluted net income per common share 4.84$ 5.03$ 5.36$ 6.41$ 1.52$ 1.63$ * Note: Noninterest income and Noninterest expense are shown net of leased equipment depreciation. See Reconciliation of non-GAAP Financial Measures" in Appendix.
40page Transportation & Warehousing 13%Finance & Insurance and Real Estate 18% Services 19% Retail Trade 8% Construction 10% Manufacturing 13% Ag, Forestry, Fishing & Hunting 10% Wholesale Trade 5% Other* 4% * Other includes: Mining, Utilities, and Information AIRCRAFT PORTFOLIO INDUSTRIES BY NAICS
59% 37% 4% 41page Interest Rate Risk Characteristics • Variable rate loans reprice quickly — 90.4% of Variable reprice within 3 months. • Fixed rate loans have short terms • Weighted average remaining life of 2.90 years. • Stable, low-cost deposit funding base — The effective rate on deposits as of March 31, 2026, was 1.84%. — 23% non-interest-bearing deposit • Liquid and high-quality investment portfolio of $1.5 billion. • Average investment portfolio duration of 3.3 years. Net Interest Income Sensitivity 1 year difference versus no rate change -100 bps Parallel Ramp +100 bps Parallel Ramp +0.55% -1.17% LOANS Fixed Variable Repricing within 3 months Variable Repricing greater than 3 months ASSET LIABILITY MANAGEMENT Fixed WARL of 2.90 years.
42page OWNERSHIP SUMMARY Institution (Top 10 Institutions) Shares % of Total BlackRock Inc. 1,994,079 8.3% Dimensional Fund Advisors LP 1,464,026 6.1% Vanguard Group Inc. 1,316,642 5.5% Charles Schwab Investment Mgmt 690,590 2.9% State Street Global Advisors Inc. 584,640 2.4% Geode Capital Management LLC 498,781 2.1% AllianceBernstein LP 467,843 2.0% American Century Investment Mgmt Inc 395,343 1.6% Boston Trust Walden Co. 372,082 1.5% Janus Henderson Group PLC 335,174 1.4% Top 10 Institutions(2) 8,119,200 33.8% Other 4,653,958 19.3% Total Institutional Ownership(2) 12,773,158 53.1% Institutional, 53.1% Insiders, 26.9% Retail/Other, 17.2% 1st Source ESOP, 2.8% (1) As of March 31, 2026 (2) As of December 31, 2025 or most recently reported data Source: S&P Global Market Intelligence and Company filings Shareholder Type Shares % of Total Institutional 12,773,158 53.1% Insiders 6,472,625 26.9% Retail/Other 4,154,361 17.2% 1st Source ESOP 668,737 2.8% Total Shares Outstanding(1) 24,068,881 100.0%
43page RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Yield on Loans and Leases (Dollars in thousands) 2022 2023 2024 2025 2026 YTD (A) Loans and leases interest income (GAAP) 263,677$ 387,143$ 451,115$ 470,768$ 113,348$ (B) Plus: loans and leases fully tax-equivalent adjustments 366 381 317 302 75 (C) Loans and leases interest income - FTE (A+B) 264,043 387,524 451,432 471,070 113,423 (D) Average loans and leases 5,566,701$ 6,203,857$ 6,598,329$ 6,934,619$ 7,022,759$ (E) Annualization factor 1.00 1.00 1.00 1.00 4.06 Yield on loans and leases (GAAP) (A*E)/D 4.74% 6.24% 6.84% 6.79% 6.55% Yield on loans and leases - FTE (C*E)/D 4.74% 6.25% 6.84% 6.79% 6.55% Pre-Tax, Pre-Provision Income (Dollars in thousands) 2022 2023 2024 2025 2025 YTD 2026 YTD (A) Income before income taxes (GAAP) 156,787$ 161,680$ 171,057$ 204,377$ 47,700$ 51,350$ (B) Plus: (Recovery of provision) provision for credit losses 13,245 5,866 12,466 12,562 3,265 7,272 (C) Pre-tax pre-provision income (A+B) 170,032$ 167,546$ 183,523$ 216,939$ 50,965$ 58,622$ Calculation of Return on Average Tangible Common Equity (Dollars in thousands) 2020 2021 2022 2023 2024 2025 2026 YTD (A) Net income (GAAP) 81,437$ 118,534$ 120,509$ 124,927$ 132,623$ 158,277$ 39,956$ (B) 865,278 906,951 872,721 926,935 1,057,331 1,202,863 1,292,902 (C) Less: average goodwill and intangible assets 83,959 83,937 83,916 83,905 83,907 83,896 83,895 (D) Average tangible common shareholders' equity (B-C) 781,319$ 823,014$ 788,805$ 843,030$ 973,424$ 1,118,967$ 1,209,007$ (E) Annualization factor 1.00 1.00 1.00 1.00 1.00 1.00 4.06 Return on average common equity (GAAP) (A*E)/B 9.41% 13.07% 13.81% 13.48% 12.54% 13.16% 12.53% Return on average tangible common equity (A*E)/D 10.42% 14.40% 15.28% 14.82% 13.62% 14.14% 13.40% Average common shareholders' equity (GAAP)
44page RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Net Interest Margin (Dollars in thousands) 2022 2023 2024 2025 2025 YTD 2026 YTD (A) Interest income (GAAP) 293,816$ 416,907$ 484,017$ 514,394$ 123,304$ 126,133$ (B) Plus: fully tax-equivalent adjustments 628 741 586 612 147 155 (C) Interest income - FTE (A+B) 294,444 417,648 484,603 515,006 123,451 126,288 (D) Interest expense (GAAP) 30,347 138,260 183,200 166,219 42,366 35,995 (E) Net interest income (GAAP) (A-D) 263,469 278,647 300,817 348,175 80,938 90,138 (F) Net interest income - FTE (C-D) 264,097 279,388 301,403 348,787 81,085 90,293 (G) Average earning assets 7,661,168$ 7,956,604$ 8,284,489$ 8,563,593$ 8,434,790$ 8,618,611$ (H) Annualization factor 1.00 1.00 1.00 1.00 4.06 4.06 Net interest margin (GAAP) (E*H)/G 3.44% 3.50% 3.63% 4.07% 3.89% 4.24% Net interest margin - FTE (F*H)/G 3.45% 3.51% 3.64% 4.07% 3.90% 4.25% Noninterest Income (Dollars in thousands) 2022 2023 2024 2025 2025 YTD 2026 YTD (A) Noninterest income (GAAP) 91,262$ 90,623$ 86,307$ 85,603$ 23,103$ 23,001$ (B) Less: depreciation - leased equipment (10,023) (7,093) (4,073) (2,415) (718) (454) (C) Noninterest income - adjusted (A-B) 81,239$ 83,530$ 82,234$ 83,188$ 22,385$ 22,547$ Noninterest Expense (Dollars in thousands) 2022 2023 2024 2025 2025 YTD 2026 YTD (A) Noninterest expense (GAAP) 184,699$ 201,724$ 203,601$ 216,839$ 53,076$ 54,517$ (B) Less: depreciation - leased equipment (10,023) (7,093) (4,073) (2,415) (718) (454) (C) Noninterest expense - adjusted (A-B) 174,676$ 194,631$ 199,528$ 214,424$ 52,358$ 54,063$
45page RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Efficiency Ratio (Dollars in thousands) 2022 2023 2024 2025 2025 YTD 2026 YTD (A) Net interest income (GAAP) 263,469$ 278,647$ 300,817$ 348,175$ 80,938$ 90,138$ (B) Net interest income - FTE 264,097 279,388 301,403 348,787 81,085 90,293 (C) Plus: noninterest income (GAAP) 91,262 90,623 86,307 85,603 23,103 23,001 (D) Less: (gains)/losses on investment securities and partnership investments (3,714) (3,875) 809 2,762 (1,427) (586) (E) Less: depreciation - leased equipment (10,023) (7,093) (4,073) (2,415) (718) (454) (F) Total net revenue (GAAP) (A+C) 354,731 369,270 387,124 433,778 104,041 113,139 (G) Total net revenue - adjusted (B+C-D-E) 341,622 359,043 384,446 434,737 102,043 112,254 (H) Noninterest expense (GAAP) 184,699 201,724 203,601 216,839 53,076 54,517 (E) Less: depreciation - leased equipment (10,023) (7,093) (4,073) (2,415) (718) (454) (I) Noninterest expense - adjusted (H-E) 174,676$ 194,631$ 199,528$ 214,424$ 52,358$ 54,063$ Efficiency ratio (GAAP-derived) (H/F) 52.1% 54.6% 52.6% 50.0% 51.0% 48.2% Efficiency ratio - adjusted (I/G) 51.1% 54.2% 51.9% 49.3% 51.3% 48.2% Calculation of Tangible Common Equity-to-Tangible Assets Ratio (Dollars in thousands) 2022 2023 2024 2025 2026 YTD (A) Total common shareholders' equity (GAAP) 864,068$ 989,568$ 1,111,068$ 1,274,971$ 1,277,956$ (B) Less: goodwill and intangible assets (83,907) (83,916) (83,897) (83,895) (83,895) (C) Total tangible common shareholders' equity (A-B) 780,161 905,652 1,027,171 1,191,076 1,194,061 (D) Total assets (GAAP) 8,339,416 8,727,958 8,931,938 9,055,270 9,113,429 (B) Less: goodwill and intangible assets (83,907) (83,916) (83,897) (83,895) (83,895) (E) Total tangible assets (D-B) 8,255,509$ 8,644,042$ 8,848,041$ 8,971,375$ 9,029,534$ Common equity-to-assets ratio (GAAP-derived) (A/D) 10.36% 11.34% 12.44% 14.08% 14.02% Tangible common equity-to-tangible assets ratio (C/E) 9.45% 10.48% 11.61% 13.28% 13.22%
46page RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Tangible Book Value per Common Share (Dollars in thousands, except for per share data) 2019 2020 2021 2022 2023 2024 2025 2026 YTD (A) Total common shareholders' equity (GAAP) 828,277$ 886,845$ 916,255$ 864,068$ 989,568$ 1,111,068$ 1,274,971$ 1,277,956$ (B) Less: goodwill and intangible assets (83,971) (83,948) (83,926) (83,907) (83,916) (83,897) (83,895) (83,895) (C) Total tangible common shareholders' equity (A-B) 744,306$ 802,897$ 832,329$ 780,161$ 905,652$ 1,027,171$ 1,191,076$ 1,194,061$ (D) Actual common shares outstanding 25,509,474 25,389,117 24,739,512 24,662,286 24,434,604 24,520,162 24,369,018 24,068,881 Book value per common share (GAAP-derived) (A/D)*1000 32.47$ 34.93$ 37.04$ 35.04$ 40.50$ 45.31$ 52.32$ 53.10$ Tangible common book value per share (C/D)*1000 29.18$ 31.62$ 33.64$ 31.63$ 37.06$ 41.89$ 48.88$ 49.61$
FAQ
How large is 1st Source Corporation (SRCE) as of 2026 year-to-date?
1st Source Corporation reports total assets of $9.1 billion and total deposits of $7.2 billion for 2026 year-to-date. The balance sheet includes about $7.1 billion of loans and leases and a $1.6 billion securities portfolio, reflecting its community banking and specialty finance focus.
What recent earnings has 1st Source Corporation (SRCE) reported?
Net income was $158 million in 2025 and $40 million for 2026 year-to-date. Diluted earnings per share were $6.41 for 2025 and $1.63 for 2026 year-to-date, supported by solid net interest income and controlled noninterest expense levels across the banking franchise.
How strong is 1st Source Corporation’s (SRCE) capital position?
Capital ratios are notably high, with a Tier 1 leverage ratio of 17.80% and a tangible common equity-to-tangible assets ratio of 13.22% for 2026 year-to-date. These levels exceed well-capitalized regulatory thresholds, supporting growth, dividends, and share repurchases.
What is 1st Source Corporation’s (SRCE) net interest margin and loan yield?
Net interest margin on a fully tax-equivalent basis is 4.25% for 2026 year-to-date. The yield on loans and leases on the same basis is 6.55%, reflecting the mix of community banking credits, specialty finance portfolios, and disciplined asset-liability management strategies.
How important is noninterest income for 1st Source Corporation (SRCE)?
Noninterest income was $22.5 million for 2026 year-to-date, representing about 20% of total revenue. Key contributors include trust, wealth advisory and retirement plan services, debit card fees, service charges on deposits, insurance commissions, and mortgage banking income.
What dividends and tangible book value does 1st Source Corporation (SRCE) show?
Common dividends per share have grown for 38 consecutive years, reaching $0.83 on a 2026 year-to-date basis. Tangible book value per common share stands at $49.61 for 2026 year-to-date, reflecting retained earnings and strong capital generation over time.