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Investor Relations · Apr 23rd, 2026
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.
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.