1st Source Corporation (SRCE) AI Stock Analysis

1st Source Corporation operates as the bank holding company for 1st Source Bank, offering financial services to individuals and businesses primarily across Indiana, Michigan, and Sarasota County, Florida. Consumer offerings include checking accounts, savings accounts, certificates of deposit, consumer loans, mortgages, home equity lines of credit, and mobile banking. For commercial clients, the bank delivers loans for real estate, industrial equipment, and renewable energy, as well as leasing and treasury management. It also provides wealth management, covering trust, investment, and custodial services for individuals, employee benefit plans, and charitable foundations.

Annual revenue expanded from $354.9M in FY2021 to $600.0M in FY2025, reflecting a 5-year revenue CAGR of 10.3%. Net income increased from $118.5M in FY2021 to $158.3M in FY2025, while diluted earnings per share grew from $4.69 to $6.73 over the same timeframe. Net margin stood at 26.4% in FY2025, down from 33.4% in FY2021, though gross margin recovered to 70.3% from 65.7% in FY2024. For the trailing twelve months ended June 30, 2026, revenue was $442.4M with an operating margin of 54.1% and a profit margin of 38.6%. In the latest quarter, quarterly revenue rose 16.0% year-over-year, and quarterly earnings grew 29.3%.

As of June 30, 2026, 1st Source Corporation held $1.60B in cash and short-term investments and $294.3M in total debt, yielding net cash of $1.30B. Shareholders' equity was $1.31B against total assets of $9.26B, with a debt-to-equity ratio of 0.22 and a current ratio of 0.51. In FY2025, operating cash flow reached $223.1M and free cash flow was $213.0M. Capital expenditures totaled $10.1M, while capital return included $13.9M in share buybacks and $38.4M in dividends paid.

At $85.91 per share, 1st Source Corporation trades at a trailing price-to-earnings multiple of 12.3x and a forward multiple of 13.7x, compared to medians of 12.1x and 10.8x for its US-listed Financial Services peers. Its price-to-sales ratio of 4.7x exceeds the peer median of 3.2x, while price-to-book stands at 1.6x and PEG is 1.37. The stock gained 52.8% over the past year and 103.1% over five years, outperforming the S&P 500 ETF (SPY) returns of 16.8% and 83.0% over the corresponding periods.

The company pays a quarterly dividend with an annualized forward payout of $1.68 per share, representing a dividend yield of 1.96%. Its payout ratio is 23.2%, and dividends have been paid for 42 consecutive years. Over the past five years, dividend growth annualized at 6.1%, with the last ex-dividend date on August 4, 2026.

Wall Street coverage consists of 1 Buy and 2 Hold ratings, with zero Sell recommendations. The mean price target of $89.67 implies 4.4% upside from the last closing price of $85.91. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $468.8M and EPS of $7.24, representing 7.4% EPS growth. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 22, 2026.

This page is an AI-written research summary of 1st Source Corporation (SRCE). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SRCE income statement, SRCE balance sheet, SRCE key metrics, SRCE analyst forecast, SRCE chart. See the SRCE stock overview for the latest quote and news.