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Investor Relations · Jul 23rd, 2026
Quarterly Highlights
- Net income was $47.54 million for the quarter, up $7.59 million or 18.99% from the previous quarter and up $10.23 million or 27.40% from the second quarter of 2025. Diluted net income per common share was $1.95, up $0.32 or 19.63% from the previous quarter and up $0.44 or 29.14% from the prior year’s second quarter of $1.51.
- Return on average assets was 2.06% for the current quarter, up from 1.80% in the previous quarter and up from 1.67% in the second quarter of 2025. Return on average common shareholders’ equity increased to 14.66% compared to 12.53% in the previous quarter and 12.61% in the second quarter of 2025.
- A cash dividend increase of two cents per share to $0.45 per common share for the quarter was approved, up seven cents or 18.42% from the cash dividend declared a year ago.
- Average loans and leases increased $119.93 million or 1.71% from the previous quarter and $174.23 million, or 2.50% from the second quarter of 2025.
- Average deposits grew $236.03 million or 3.28% from the previous quarter and $78.52 million or 1.07% from the second quarter a year ago. Average deposits, net of brokered deposits, grew $194.24 million or 2.80% from the previous quarter and $259.86 million or 3.78% from the second quarter of 2025.
- Tax-equivalent net interest income was $93.30 million, up $3.00 million or 3.33% from the previous quarter and up $7.95 million, or 9.32% from the second quarter a year ago. Tax-equivalent net interest margin was 4.24%, down one basis point from the previous quarter and up 23 basis points from the second quarter of 2025.
- Provision for credit losses of $1.54 million was recorded during the quarter compared to $7.27 million in the previous quarter and $7.69 million during the previous year’s second quarter. The allowance for loan and lease losses as a percentage of total loans and leases was 2.30% at June 30, 2026, down from 2.33% at March 31, 2026 and unchanged from June 30, 2025.
South Bend, IN – 1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported record quarterly net income of $47.54 million for the second quarter of 2026, up 18.99% compared to $39.96 million reported in the previous quarter and up 27.40% compared to $37.32 million in the second quarter a year ago. Diluted net income per common share for the second quarter of 2026 was $1.95, up 19.63% compared to $1.63 in the previous quarter and up 29.14% versus $1.51 in the second quarter of 2025.
At its July 2026 meeting, the Board of Directors approved an increase in the cash dividend of two cents per share, raising the approved dividend for the quarter to $0.45 per common share, up seven cents or 18.42% from the cash dividend declared a year ago. The cash dividend is payable to shareholders of record on August 4, 2026, and will be paid on August 14, 2026.
Andrea G. Short, President and Chief Executive Officer, commented, “We are pleased to announce that 1st Source had a record second quarter. During the second quarter of 2026, average loans and leases grew $119.93 million, up 1.71% and average deposits grew $236.03 million, up 3.28%, each from the previous quarter. Credit quality improved during the quarter with fewer net charge-offs, a lower provision for credit losses, and a reduction in nonperforming assets compared to the previous quarter. We were also able to preserve our net interest margin and further improve our efficiency ratio during the quarter. The positive income statement performance during the quarter also allowed us to further strengthen our already robust balance sheet position.
“During the second quarter of 2026, we were pleased to learn that 1st Source, for the eighth year in a row, was named to the annual Bank Honor Roll by Keefe, Bruyette & Woods, Inc. (KBW). We were among just 17 U.S. Banks on the list, placing our long-term performance among the top 5% of eligible banks in the United States. To be eligible, Banks must have more than $500 million in total assets and meet at least one of two criteria: consistent earnings growth over each of the past 10 years, and/or rank in the top 5% of eligible banks based on a 10-year earnings per share (EPS) compounded annual growth rate (CAGR). This recognition reinforces that our mission of Helping Clients Achieve Security, Build Wealth And Realize Their Dreams® aligns with consistent, strong financial performance for the long term.
“Additionally, we learned that we once again received both Forbes’ America’s Best-In-State Banks and Forbes’ America’s Best Employers for New Grads. According to Forbes, the Best-In-State ranking is based on an independent survey of approximately 26,000 U.S. residents who evaluated their primary banking relationships across key dimensions including trust, customer service, financial advice, digital experience, and overall satisfaction. For the Best Employers for New Grads, Forbes surveyed more than 100,000 young professionals working for companies with at least 1,000 employees in the U.S., asking them to evaluate employers in areas such as salary, benefits, advancement opportunities, AI adoption, work-life balance and company image. We are proud of these awards, which highlight that our culture and values are evident to both our clients and our colleagues.
“We are also excited to have recently celebrated the groundbreaking ceremony for our newest location in West Lafayette. This will be our third location in the Lafayette area and the banking center will feature our side-by-side banking model which invites the client behind the “teller line,” allowing our clients and bankers to have a more transparent and inclusive experience and relationship. We are excited to watch the construction process and look forward to serving personal and business clients in this new location with our full suite of services soon.” Mrs. Short concluded.