1st Source Corporation
- Open
- 81.60
- Day high
- 82.80
- Day low
- 80.00
- Prev close
- 81.58
- Volume
- 5K
- Mkt cap
- $2.0B
- P/E (TTM)
- 12.7
- EPS (TTM)
- $6.45
- P/B
- 1.6
- P/S
- 3.3
- Yield
- 0.52%
- Per share
- $0.43
1st Source Corporation (SRCE) is a Financial Services company listed on NASDAQ. The stock is up 27% over the past year.
1st Source Corporation (SRCE) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SRCE earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 23, 2026 | $1.64 | $1.63 | -0.6% | $113M | +1.0% |
| Jan 22, 2026 | $1.62 | $1.67 | +3.1% | $111M | -0.9% |
| Oct 23, 2025 | $1.60 | $1.71 | +6.9% | $111M | +1.2% |
| Jul 24, 2025 | $1.49 | $1.51 | +1.3% | $108M | +2.5% |
| Apr 24, 2025 | $1.36 | $1.52 | +11.8% | $104M | +3.0% |
| Jan 23, 2025 | $1.33 | $1.40 | +5.3% | $98M | +0.2% |
| Oct 24, 2024 | $1.34 | $1.41 | +5.2% | $98M | +0.4% |
| Jul 25, 2024 | $1.22 | $1.49 | +22.1% | $97M | +2.6% |
| Apr 25, 2024 | $1.14 | $1.19 | +4.4% | $94M | +1.2% |
| Feb 20, 2024 | $1.15 | $1.15 | +0.0% | $91M | +0.1% |
| Oct 19, 2023 | $1.10 | $1.32 | +20.0% | $94M | +4.4% |
| Jul 20, 2023 | $1.11 | $1.30 | +17.1% | $91M | -0.3% |
SRCE insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 5, 2026 | AFFLECK-GRAVES JOHN Fdirector | Grant | 1,481 | $73.49 |
| Jun 5, 2026 | BIRMINGHAM MELODYdirector | Grant | 250 | $73.49 |
| Jun 5, 2026 | SHREWSBURY RONDAdirector | Grant | 1,542 | $73.49 |
| Jun 5, 2026 | FITZPATRICK DANIEL Bdirector | Grant | 250 | $73.49 |
| Jun 5, 2026 | Graham Tracy Ddirector | Grant | 562 | $73.49 |
| Jun 5, 2026 | Murphy Christopher J IVdirector | Grant | 250 | $73.49 |
| Jun 5, 2026 | Schurz Todd F.director | Grant | 1,515 | $73.49 |
| Jun 5, 2026 | SCHWABERO MARK Ddirector | Grant | 1,338 | $73.49 |
| Jun 5, 2026 | OZARK TIMOTHY Kdirector | Grant | 1,583 | $73.49 |
| Jun 5, 2026 | Torres Isaac P.director | Grant | 1,583 | $73.49 |
| Mar 10, 2026 | BIRMINGHAM MELODYdirector | Buy | 35 | $47.56 |
| Mar 10, 2026 | BIRMINGHAM MELODYdirector | Buy | 54 | $61.31 |
| Mar 10, 2026 | BIRMINGHAM MELODYdirector | Buy | 38 | $48.50 |
| Mar 10, 2026 | BIRMINGHAM MELODYdirector | Buy | 53 | $48.21 |
| Mar 10, 2026 | BIRMINGHAM MELODYdirector | Buy | 56 | $49.50 |
Source: SRCE SEC Form 4 filings, latest Jun 5, 2026. For informational purposes only — not investment advice.
See the full SRCE insider & 13F page →1st Source Corporation company profile
Overview
1st Source Corporation (NASDAQ:SRCE) is a regional bank holding company founded in 1863 and headquartered in South Bend, Indiana. The company operates through its primary subsidiary, 1st Source Bank, serving customers across 18 counties in Indiana and Michigan, as well as Sarasota County in Florida through 79 banking centers. With over 160 years of banking history, 1st Source has evolved from a local community bank into a diversified financial services provider offering commercial and consumer banking, wealth management, insurance, and specialized equipment financing services.
Business
1st Source Corporation operates as a regional bank holding company in the financial services sector, providing a comprehensive range of banking and financial services to individual and business customers. The company's operations are structured around several key business segments that generate revenue through different service offerings. Commercial and Consumer Banking represents the core traditional banking business, offering checking and savings accounts, certificates of deposit, individual retirement accounts, and various loan products including commercial loans, real estate mortgages, consumer loans, and home equity lines of credit. This segment also provides digital banking services through online and mobile platforms, along with debit and credit card services. Commercial banking extends to small business and agricultural lending, providing financing for general corporate purposes, equipment purchases, inventory financing, and accounts receivable management. Wealth Management and Trust Services provides fiduciary and investment management services, including administration of estates and personal trusts, investment account management for individuals, employee benefit plans, and charitable foundations. The company offers financial planning, retirement planning services, and financial literacy consulting to help clients manage their long-term financial goals. Specialized Equipment Finance is a distinctive business line that provides equipment loans and leases for construction equipment, aircraft (both new and pre-owned), commercial vehicles including medium and heavy-duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, and funeral cars. This segment serves customers nationwide and represents a significant growth area for the company. Insurance Services rounds out the company's offerings with corporate and personal property insurance, casualty insurance, and individual and group health and life insurance products, providing comprehensive risk management solutions for both personal and business clients. While specific revenue breakdowns by segment are not provided in the available data, traditional banking operations typically represent the largest portion of revenue for regional banks, with net interest income from loans and deposits being the primary driver, supplemented by fee-based services from wealth management, equipment financing, and insurance operations.
Revenue model
1st Source Corporation generates revenue through multiple complementary business models that leverage its position as a full-service financial institution. The company's primary revenue streams come from net interest income, which is the difference between interest earned on loans and investments and interest paid on deposits and borrowings. This traditional banking model benefits from the company's loan portfolio, which includes commercial loans, real estate mortgages, consumer loans, and specialized equipment financing. Fee-based income represents a significant secondary revenue source, generated through wealth management services, trust administration, treasury management services for commercial clients, and insurance product sales. The equipment financing division contributes through lease payments and loan origination fees, while the bank's digital banking services generate interchange fees from debit and credit card transactions. The company's profitability is influenced by several key factors. Interest rate environment significantly impacts net interest margins - rising rates generally benefit banks by increasing the spread between loan yields and deposit costs, though this relationship can be complex depending on the timing and magnitude of rate changes. Credit quality directly affects profitability through loan loss provisions, with economic downturns potentially increasing default rates and reducing earnings. Deposit competition from larger national banks and fintech companies can pressure the bank to offer higher deposit rates, compressing margins. Conversely, the company's strong local market presence and relationship banking approach can help maintain customer loyalty and pricing power. Regulatory compliance costs represent an ongoing expense that can impact margins, particularly for regional banks that must meet the same regulatory standards as larger institutions but with less scale to absorb these costs. The specialized equipment financing business provides diversification benefits but is sensitive to economic cycles affecting construction, transportation, and aviation industries. This segment's performance can be influenced by factors such as fuel prices, freight demand, and capital expenditure cycles in the industries it serves.
Competitive moat
1st Source Corporation operates with a moderate competitive moat built primarily around its established local market presence and relationship banking model. The company's 160-year history in its core markets has created deep community ties and customer relationships that are difficult for competitors to replicate quickly. This local market knowledge and relationship-based approach provides advantages in understanding customer needs and assessing credit risk, particularly for commercial and small business lending. The bank's specialized equipment financing division represents a more defensible business line, as it requires specific industry expertise, established dealer networks, and specialized underwriting capabilities. This niche focus on construction equipment, aircraft, and commercial vehicles creates barriers to entry for competitors lacking this expertise and infrastructure. However, the company faces significant competitive pressures that limit the strength of its moat. Large national banks can offer more competitive pricing, broader product suites, and more advanced digital banking capabilities due to their scale advantages. Fintech companies are increasingly encroaching on traditional banking services, particularly in payments, lending, and wealth management, often with more user-friendly digital interfaces and competitive pricing. Digital transformation represents both a challenge and an opportunity, as customers increasingly expect sophisticated online and mobile banking capabilities. While 1st Source offers digital services, it must continuously invest to keep pace with larger competitors and fintech disruptors. The company's relatively small size compared to major regional and national banks limits its ability to invest heavily in technology infrastructure and digital innovation. The regulatory environment also constrains the moat, as banking regulations create high barriers to entry but also limit pricing flexibility and operational efficiency. Community banks like 1st Source must comply with the same regulatory requirements as much larger institutions but without the same economies of scale to absorb compliance costs.
Risks & safety
1st Source Corporation demonstrates strong financial stability with solid capital ratios and consistent profitability, though it faces typical regional banking risks. • Liquidity and Solvency: Strong cash position with $87.8 million in cash and short-term investments as of Q1 2025, robust free cash flow generation of $69.3 million in Q1 2025, and healthy current ratio of 1,379.9, indicating excellent short-term liquidity management. • Debt Management: Conservative debt-to-equity ratio of 8.7% as of Q1 2025, down from 15.9% in Q4 2024, indicating prudent leverage management and strong balance sheet structure. • Valuation Metrics: Trading at reasonable valuation multiples with P/E ratio of 9.78 and price-to-book ratio of 1.26 as of Q1 2025, suggesting the stock is not overvalued relative to earnings and book value. • Profitability Trends: Consistent profitability with ROE of 3.2% in Q1 2025, though this represents a decline from the 11.9% full-year 2024 ROE, indicating some earnings volatility typical of regional banks. • Credit Risk Considerations: As a regional bank, the company is exposed to local economic conditions and credit cycles, though its diversified lending portfolio and conservative underwriting practices provide some protection against significant credit losses.
Recent development
Based on the available financial data, 1st Source Corporation has demonstrated steady operational performance with some notable strategic developments over recent years. The company has maintained consistent revenue generation, with quarterly revenues stabilizing around $97-123 million in recent periods, indicating a stable core business foundation. The company has shown strong cash flow generation, with free cash flow improving significantly to $69.3 million in Q1 2025 compared to $27.0 million in Q4 2024, suggesting improved operational efficiency and cash management. This improvement in cash generation provides the company with greater financial flexibility for strategic investments and shareholder returns. Balance sheet optimization appears to be a key focus, with the debt-to-equity ratio improving dramatically from 15.9% in Q4 2024 to 8.7% in Q1 2025, indicating active debt reduction efforts and strengthening of the capital structure. This deleveraging strategy positions the bank more conservatively and reduces financial risk. The company has maintained its dividend-paying capacity while generating solid returns, with full-year 2024 ROE of 11.9%, though quarterly ROE has shown some volatility. The equipment financing business continues to be a differentiating factor, though specific strategic initiatives in this area are not detailed in the available financial data. Digital banking infrastructure investments appear ongoing, as evidenced by the company's continued offering of online and mobile banking services, though specific technology initiatives or digital transformation projects are not explicitly detailed in the available information.
SRCE company profile · for informational purposes only — not investment advice.
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