SRCE

As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the regional banks industry, including 1st Source (NASDAQ:SRCE) and its peers. Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges. The 95 regional banks stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates. In light of this news, share prices of the companies have held steady as they are up 3.3% on average since the latest earnings results. Tracing its roots back to 1863 during the Civil War era, 1st Source Corporation (NASDAQ:SRCE) is a regional bank holding company that provides commercial, consumer, specialty finance, and wealth management services across Indiana, Michigan, and Florida. 1st Source reported revenues of $118.3 million, up 8.1% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was a strong quarter for the company with a beat of analysts’ EPS and net interest income estimates. Interestingly, the stock is up 6.5% since reporting and currently trades at $88.59. Is now the time to buy 1st Source? Access our full analysis of the earnings results here, it’s free. Originally founded in 1964 as a federal savings and loan institution, OFG Bancorp (NYSE:OFG) provides banking and financial services including commercial and consumer lending, wealth management, insurance, and trust services primarily in Puerto Rico and the U.S. Virgin Islands. OFG Bancorp reported revenues of $190.3 million, up 4.3% year on year, outperforming analysts’ expectations by 3.9%. The business had an exceptional quarter with a beat of analysts’ EPS and net interest income estimates. The market seems happy with the results as the stock is up 7.9% since reporting. It currently trades at $53.95. Is now the time to buy OFG Bancorp? Access our full analysis of the earnings results here, it’s free. Originally established in 1941 and now operating with a tech-forward approach that includes its SmartStreet platform for homeowner associations, Banc of California (NYSE:BANC) is a California-based bank holding company that provides banking services to small and middle-market businesses, entrepreneurs, and individuals. Banc of California reported revenues of $285.7 million, up 4.7% year on year, falling short of analysts’ expectations by 3.1%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share and net interest income estimates. As expected, the stock is down 6.8% since the results and currently trades at $19.74. Read our full analysis of Banc of California’s results here. With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ:UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers. UMB Financial reported revenues of $759.8 million, up 15.1% year on year. This number beat analysts’ expectations by 3.9%. It was a very strong quarter as it also put up a beat of analysts’ EPS and net interest income estimates. The stock is up 5.5% since reporting and currently trades at $151.97. Read our full, actionable report on UMB Financial here, it’s free. Founded in 1784 as one of the oldest banks in the Western Hemisphere, Butterfield Bank (NYSE:NTB) provides banking, wealth management, and trust services to individuals and businesses in select offshore financial centers including Bermuda, Cayman Islands, and the Channel Islands. Butterfield Bank reported revenues of $159 million, up 8.6% year on year. This result surpassed analysts’ expectations by 1.3%. Zooming out, it was a mixed quarter as it also produced a solid beat of analysts’ net interest income estimates but a significant miss of analysts’ tangible book value per share estimates. The stock is up 5.3% since reporting and currently trades at $63.94. Read our full, actionable report on Butterfield Bank here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

In July 2026, 1st Source Corporation reported past second-quarter and six-month results showing higher net interest income and net income year over year, while also disclosing lower net charge-offs compared with the same period a year earlier. The board backed this earnings strength with an 18.42% year-over-year increase in the quarterly cash dividend to US$0.45 per share and confirmed completion of a multi-year share repurchase program. Next, we'll examine how this combination of earnings outperformance and a higher dividend shapes 1st Source's broader investment narrative for investors. Find 49 companies with promising cash flow potential yet trading below their fair value. To own 1st Source, you need to be comfortable backing a regional bank whose story rests on steady profitability, conservative credit, and disciplined capital returns rather than headline-grabbing growth. The latest quarter plays into that thesis: net interest income and earnings came in ahead of expectations, net charge-offs eased after a bump in Q1, and the board responded with an 18.42% dividend increase and confirmation that its multi-year buyback is now complete. In the near term, the key swing factors remain credit quality and funding costs, with this print modestly easing concern on the former but not fundamentally changing the risk profile. With the share price already strong year to date, the earnings beat and higher dividend look supportive rather than transformational for the immediate catalysts. However, investors should not overlook how quickly credit metrics turned earlier this year. 1st Source's shares have been on the rise but are still potentially undervalued by 32%. Find out what it's worth. Two fair value estimates from the Simply Wall St Community span roughly US$80 to US$126 per share, underlining how differently people view 1st Source. When you weigh that spread against recent earnings strength, lower charge-offs, and a richer dividend, it becomes clear that views on credit risk and sustainability of returns can drive very different conclusions about the bank’s longer term performance. Explore 2 other fair value estimates on 1st Source - why the stock might be worth 6% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your 1st Source research is our analysis highlighting 3 key rewards that could impact your investment decision. Our free 1st Source research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate 1st Source's overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Explore 26 top quantum computing companies leading the revolution in next-gen technology and shaping the future with breakthroughs in quantum algorithms, superconducting qubits, and cutting-edge research. Invest in the nuclear renaissance through our list of 90 elite nuclear energy infrastructure plays powering the global AI revolution. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SRCE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

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, Indiana--(Newsfile Corp. - July 23, 2026) - 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. SECOND QUARTER 2026 FINANCIAL RESULTS Loans and Leases Second quarter average loans and leases were $7.14 billion, which was up $119.93 million or 1.71% from the previous quarter and increased $174.23 million or 2.50% from the second quarter of 2025. Year-to-date average loans and leases increased $198.88 million, up 2.89% from the first six months of 2025. Average loan growth in the second quarter of 2026 occurred mainly within the Commercial and Agricultural, Renewable Energy, Construction Equipment, and Commercial Real Estate portfolios. Deposits Second quarter average deposits were $7.43 billion, which was up $236.03 million or 3.28%, from the previous quarter and increased $78.52 million or 1.07% compared to the second quarter a year ago. Average deposits for the first six months of 2026 were $7.31 billion, a decrease of $31.12 million or 0.42% from the same period a year ago. Average deposit balances increased from the previous quarter primarily due to higher interest-bearing demand deposits which included seasonal increases associated with municipal tax collection cycles, time deposits, and savings deposits. Average brokered deposits were $301.08 million, an increase of $41.79 million or 16.12% compared to the previous quarter and a decrease of $181.34 million or 37.59% from the prior year second quarter. Net Interest Income and Net Interest Margin Second quarter 2026 tax-equivalent net interest income increased $3.00 million to $93.30 million, up 3.33% from the previous quarter and was $7.95 million, or 9.32% higher compared to the second quarter a year ago. For the first six months of 2026, tax equivalent net interest income increased $17.16 million to $183.59 million, up 10.31% from the first half of 2025. Second quarter 2026 net interest margin was 4.23%, a decrease of one basis point from 4.24% in the previous quarter and an increase of 23 basis points from the same period in 2025. On a fully tax-equivalent basis, the second quarter 2026 net interest margin was 4.24%, down one basis point from the previous quarter and an increase of 23 basis points from the same period in 2025. The increase from the second quarter of 2025 was primarily due to higher average loan and lease balances, improved yields on investments from portfolio repositioning trades made in 2025, and lower interest-bearing deposit costs. Net interest recoveries had a positive three basis points impact during the quarter on the tax-equivalent net interest margin, compared to a positive one basis point in the previous quarter and net interest charge-offs had no impact in the prior year's second quarter. Net interest margin and net interest margin on a fully-tax equivalent basis for the first six months of 2026 were 4.24%, an increase of 29 basis points compared to 3.95% for the first six months of 2025. Net interest recoveries had a positive one basis point impact and three basis points positive impact to the current and previous year-to-date fully tax-equivalent net interest margin. Noninterest Income Second quarter 2026 noninterest income of $25.02 million increased $2.02 million or 8.77% compared to the previous quarter and was higher by $1.96 million or 8.51% compared to the second quarter a year ago. For the first six months of 2026, noninterest income increased $1.86 million or 4.03% from the first six months of 2025. The increase from the previous quarter was mainly due to higher trust and wealth advisory income from larger than usual estate administration fees primarily from one account in the process of settlement and seasonal tax preparation fees, an increase in debit card income, higher brokerage fees and commissions, higher interest rate swap fees, and increased partnership investment gains. These increases were offset by lower insurance contingent commissions and decreased mortgage banking income from lower sales volumes. The increase in noninterest income compared to the second quarter and first six months of 2025 was the result of increased trust and wealth advisory income from larger than usual estate administration fees mentioned above, realized losses of $1.00 million from repositioning of available-for-sale securities during the second quarter of 2025, increased deposit account fees, higher debit card income, and a rise in brokerage commissions and fees. These increases were offset by fewer gains on the sale of renewable energy tax equity investments, reduced equipment rental income as demand for operating leases continued to decline and decreased mortgage banking income from lower gains on loan sales due to reduced profit margins. Noninterest Expense Second quarter 2026 noninterest expense of $55.03 million increased $0.51 million or 0.93% compared to the prior quarter and rose $2.60 million or 4.95% from the second quarter a year ago. For the first six months of 2026, noninterest expense increased $4.04 million, or 3.83% from the first six months of 2025. The increase in noninterest expense compared to the second quarter and first six months of 2025 was the result of increased salaries and wages due to normal merit increases, increased incentive compensation and higher group insurance claims. Additionally, we saw increased occupancy expenses from snow removal during the first quarter and premises repairs, higher professional consulting costs, a rise in collection and repossession expense, and an increase in debit card losses. These increases were offset by lower leased equipment depreciation and an increase in gains on the sale of repossessed assets. Credit The allowance for loan and lease losses increased to $166.35 million as of June 30, 2026, or 2.30% of total loans and leases. The 2.30% decreased from 2.33% at March 31, 2026 and remained consistent with the 2.30% at June 30, 2025. Net charge-offs of $0.52 million were recorded for the second quarter of 2026, compared with net charge-offs of $3.96 million in the prior quarter and net charge-offs of $1.87 million in the same quarter a year ago. The provision for credit losses was $1.54 million for the second quarter of 2026, a decrease of $5.73 million from the previous quarter and a decrease of $6.15 million compared with the same period in 2025. The decrease in the provision expense was mainly due to a reduction in special attention loans, reduced net charge-offs and a decrease in the provision for unfunded commitments due to increased line utilization and loan fundings, offset by loan growth. The ratio of nonperforming assets to loans and leases was 1.01% as of June 30, 2026, compared to 1.03% on March 31, 2026 and 1.06% on June 30, 2025. The decrease in nonperforming assets during the quarter was primarily from lower nonaccrual loans and leases partially offset by an increase in repossessed assets. Capital As of June 30, 2026, the common equity-to-assets ratio was 14.15%, compared to 14.02% at March 31, 2026 and 13.19% a year ago. The tangible common equity-to-tangible assets ratio was 13.36% at June 30, 2026, compared to 13.22% at March 31, 2026 and 12.38% a year earlier. The Common Equity Tier 1 ratio, calculated under banking regulatory guidelines, was 15.49% at June 30, 2026, compared to 15.30% at March 31, 2026 and 14.60% a year ago. There were no shares repurchased for treasury during the second quarter of 2026. Total year-to-date repurchased shares of 338,356 have reduced common shareholder's equity by $23.35 million. ABOUT 1ST SOURCE CORPORATION 1st Source common stock is traded on the NASDAQ Global Select Market under "SRCE" and appears in the National Market System tables in many daily newspapers under the code name "1st Src." Since 1863, 1st Source has been committed to the success of its clients, individuals, businesses and the communities it serves. For more information, visit www.1stsource.com. 1st Source serves the northern half of Indiana and southwest Michigan and is the largest locally controlled financial institution headquartered in the area. While delivering a comprehensive range of consumer and commercial banking services through its community bank offices, 1st Source has distinguished itself with highly personalized services. 1st Source Bank also competes for business nationally by offering specialized financing services for new and used private and cargo aircraft, automobiles for leasing and rental agencies, medium and heavy-duty trucks, and construction equipment. The Corporation includes 78 banking centers, 16 1st Source Bank Specialty Finance Group locations nationwide, nine Wealth Advisory Services locations, 13 1st Source Insurance offices, and three loan production offices. FORWARD-LOOKING STATEMENTS Except for historical information contained herein, the matters discussed in this document express "forward-looking statements." Generally, the words "believe," "contemplate," "seek," "plan," "possible," "assume," "hope," "expect," "intend," "targeted," "continue," "remain," "estimate," "anticipate," "project," "will," "should," "indicate," "would," "may" and similar expressions indicate forward-looking statements. Those statements, including statements, projections, estimates or assumptions concerning future events or performance, and other statements that are other than statements of historical fact, 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. 1st Source may make other written or oral forward-looking statements from time to time. Readers are 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. Such factors, among others, include changes in laws, regulations or accounting principles generally accepted in the United States; 1st Source's competitive position within its markets served; increasing consolidation within the banking industry; unforeseen changes in interest rates; unforeseen downturns in the local, regional or national economies or in the industries in which 1st Source has credit concentrations; and other risks discussed in 1st Source's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, which filings are available from the SEC. 1st Source undertakes no obligation to publicly update or revise any forward-looking statements. 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 and tangible book value per common share. Management believes that these measures provide users of the Company's financial information with 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. Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent ("FTE") basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE basis is also used in the calculation of the Company's efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses and lease depreciation), measures how much it costs to produce one dollar of revenue. Securities gains or losses and lease depreciation are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity-to-tangible assets ratio and tangible book value per common share as useful measurements of the Company's equity. See the table marked "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. # # # Category: Earnings (charts attached) (1) See "Reconciliation of Non-GAAP Financial Measures" for more information on this performance measure/ratio.(2) Calculated as common shareholders' equity divided by common shares outstanding at the end of the period.(3) Calculated under banking regulatory guidelines. The NASDAQ Stock Market National Market Symbol: "SRCE" (CUSIP #336901 10 3) Please contact us at [email protected] Contact:Brett Bauer574-235-2000 To view the source version of this press release, please visit https://www.newsfilecorp.com/release/306243

1st Source (SRCE) came out with quarterly earnings of $1.95 per share, beating the Zacks Consensus Estimate of $1.71 per share. This compares to earnings of $1.51 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +14.04%. A quarter ago, it was expected that this holding company for 1st Source Bank would post earnings of $1.64 per share when it actually produced earnings of $1.63, delivering a surprise of -0.61%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. 1st Source, which belongs to the Zacks Banks - Midwest industry, posted revenues of $118.16 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.57%. This compares to year-ago revenues of $108.25 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. 1st Source shares have added about 32.6% since the beginning of the year versus the S&P 500's gain of 9.6%. While 1st Source has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for 1st Source was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.72 on $116.5 million in revenues for the coming quarter and $6.81 on $463.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 34% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, UMB Financial (UMBF), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 28. This bank holding company is expected to post quarterly earnings of $3.08 per share in its upcoming report, which represents a year-over-year change of +4.1%. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. UMB Financial's revenues are expected to be $725.8 million, up 5.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 1st Source Corporation (SRCE) : Free Stock Analysis Report UMB Financial Corporation (UMBF) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects UMB Financial (UMBF) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on July 28, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This bank holding company is expected to post quarterly earnings of $3.08 per share in its upcoming report, which represents a year-over-year change of +4.1%. Revenues are expected to be $725.8 million, up 5.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.4% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For UMB, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.42%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that UMB will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that UMB would post earnings of $2.82 per share when it actually produced earnings of $3.41, delivering a surprise of +20.92%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. UMB doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Banks - Midwest industry, 1st Source (SRCE), is soon expected to post earnings of $1.71 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +13.3%. This quarter's revenue is expected to be $115.2 million, up 6.4% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for 1st Source has remained unchanged. Nevertheless, the company now has an Earnings ESP of +0.10%, reflecting a higher Most Accurate Estimate. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP indicates that 1st Source will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report UMB Financial Corporation (UMBF) : Free Stock Analysis Report 1st Source Corporation (SRCE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Wintrust Financial (WTFC) came out with quarterly earnings of $3.3 per share, beating the Zacks Consensus Estimate of $3.15 per share. This compares to earnings of $2.78 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.76%. A quarter ago, it was expected that this bank holding company would post earnings of $2.96 per share when it actually produced earnings of $3.22, delivering a surprise of +8.78%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Wintrust, which belongs to the Zacks Banks - Midwest industry, posted revenues of $741.38 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.57%. This compares to year-ago revenues of $670.78 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Wintrust shares have added about 17.5% since the beginning of the year versus the S&P 500's gain of 8.9%. While Wintrust has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Wintrust was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.29 on $756.33 million in revenues for the coming quarter and $13.03 on $2.97 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Midwest is currently in the top 32% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, 1st Source (SRCE), has yet to report results for the quarter ended June 2026. The results are expected to be released on July 23. This holding company for 1st Source Bank is expected to post quarterly earnings of $1.71 per share in its upcoming report, which represents a year-over-year change of +13.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. 1st Source's revenues are expected to be $115.2 million, up 6.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Wintrust Financial Corporation (WTFC) : Free Stock Analysis Report 1st Source Corporation (SRCE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

1st Source (SRCE) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This holding company for 1st Source Bank is expected to post quarterly earnings of $1.71 per share in its upcoming report, which represents a year-over-year change of +13.3%. Revenues are expected to be $115.2 million, up 6.4% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For 1st Source, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.29%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that 1st Source will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that 1st Source would post earnings of $1.64 per share when it actually produced earnings of $1.63, delivering a surprise of -0.61%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. 1st Source doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. First Merchants (FRME), another stock in the Zacks Banks - Midwest industry, is expected to report earnings per share of $1.03 for the quarter ended June 2026. This estimate points to a year-over-year change of +5.1%. Revenues for the quarter are expected to be $194.96 million, up 18.7% from the year-ago quarter. The consensus EPS estimate for First Merchants has been revised 1.6% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +0.81%. This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that First Merchants will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 1st Source Corporation (SRCE) : Free Stock Analysis Report First Merchants Corporation (FRME) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. 1st Source (SRCE) is back on investors' radar after its recent quarterly earnings report, which highlighted higher profit, a dividend increase, and a larger loan loss reserve to reflect ongoing economic uncertainty. See our latest analysis for 1st Source. The recent earnings and dividend news comes after a stretch of steady gains, with 1st Source’s share price up 11.73% over 90 days and a year-to-date share price return of 20.64%. The 1-year total shareholder return of 26.41% and 5-year total shareholder return of 74.51% point to momentum that has built over time rather than faded. If you want to see how other financial stocks are responding to shifting market themes, now could be a good time to scan 21 top founder-led companies On one hand, the stock trades below the average analyst price target and some models suggest a sizable intrinsic discount; on the other, recent gains are strong. Is there still a buying opportunity here, or is future growth already priced in? On earnings, 1st Source trades at a P/E of 11.4x, which sits below both its peer group on 13.6x and the wider US Banks industry at 11.6x. The P/E ratio compares the current share price with earnings per share, so it gives a quick sense of how much investors are paying for each dollar of profit. For a bank like 1st Source, with earnings growth of 7.5% per year over the past 5 years and higher net profit margins of 37.4% versus 35.9% a year earlier, this is a useful way to line up market expectations against its earnings track record. There is a tension here. On one side, the stock screens as good value against peers on P/E, trading below both the 13.6x peer average and the 11.6x US Banks industry average. On the other side, compared with an estimated fair P/E of 10.4x, the shares screen as expensive, which suggests the multiple could move closer to that level if sentiment or growth expectations cool. Explore the SWS fair ratio for 1st Source Result: Price-to-earnings of 11.4x (ABOUT RIGHT) However, it is still worth keeping in mind that higher loan loss reserves, along with the stock’s recent 20.6% year-to-date gain, could both limit how much rerating investors see from here. Wall Street's queuing for one rocket. While SpaceX counts down to its IPO, other companies tied to the new space race are already in orbit. → 20 Compelling Space Companies watchlist · Global Space Race Investing Ideas screener · Scan the sector by valuation on Rocket Lab's valuation page. While the P/E of 11.4x looks roughly in line with the sector, the SWS DCF model presents a different perspective. With the share price at $75.35 and an estimated future cash flow value of $124.61, the stock appears to be trading about 39.5% below that figure. This raises the question of whether there is a genuine gap, or whether the model is too generous. Look into how the SWS DCF model arrives at its fair value. Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out 1st Source for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity. Supportive signals in the article or not, you are better off weighing the numbers yourself and acting while the data is fresh, starting with the 3 key rewards. If you stop with just one stock, you might miss out on other opportunities that fit your style, so now is a good time to widen the search. Target potential value by scanning 49 high quality undervalued stocks, which combines quality fundamentals with prices the market may be discounting. Strengthen your income stream by checking 9 dividend fortresses, which focuses on higher-yield payments with resilience in mind. Dial back risk by reviewing 64 resilient stocks with low risk scores, where financial stability and lower risk scores are front and center. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SRCE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Looking back on regional banks stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including 1st Source (NASDAQ:SRCE) and its peers. Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges. The 91 regional banks stocks we track reported a slower Q1. As a group, revenues were in line with analysts’ consensus estimates. While some regional banks stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.2% since the latest earnings results. Tracing its roots back to 1863 during the Civil War era, 1st Source Corporation (NASDAQ:SRCE) is a regional bank holding company that provides commercial, consumer, specialty finance, and wealth management services across Indiana, Michigan, and Florida. 1st Source reported revenues of $113.3 million, up 8.7% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ net interest income estimates but EPS in line with analysts’ estimates. The stock is down 1.2% since reporting and currently trades at $72.35. Is now the time to buy 1st Source? Access our full analysis of the earnings results here, it’s free. With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ:UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers. UMB Financial reported revenues of $744.8 million, up 29.3% year on year, outperforming analysts’ expectations by 5.4%. The business had an exceptional quarter with a beat of analysts’ EPS and net interest income estimates. UMB Financial achieved the biggest analyst estimates beat among its peers. However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $125.84. Is now the time to buy UMB Financial? Access our full analysis of the earnings results here, it’s free. Born from the ashes of a failed Florida thrift during the 2009 financial crisis, BankUnited (NYSE:BKU) is a regional bank that provides commercial lending, deposit services, and treasury solutions to businesses and consumers primarily in Florida and the New York metropolitan area. BankUnited reported revenues of $273.8 million, up 6.1% year on year, falling short of analysts’ expectations by 5.1%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates. As expected, the stock is down 3.5% since the results and currently trades at $45.15. Read our full analysis of BankUnited’s results here. With a strategic focus on low-risk, government-backed lending programs, Merchants Bancorp (NASDAQCM:MBIN) is an Indiana-based bank holding company specializing in multi-family mortgage banking, mortgage warehousing, and traditional banking services. Merchants Bancorp reported revenues of $175.2 million, up 20.1% year on year. This print was in line with analysts’ expectations. Aside from that, it was a slower quarter as it logged a miss of analysts’ net interest income estimates and revenue in line with analysts’ estimates. The stock is down 9.8% since reporting and currently trades at $44.75. Read our full, actionable report on Merchants Bancorp here, it’s free. Tracing its roots back to 1902 in western Pennsylvania's industrial heartland, S&T Bancorp (NASDAQ:STBA) is a Pennsylvania-based bank holding company that provides retail and commercial banking services, cash management, trust services, and investment advisory solutions. S&T Bancorp reported revenues of $102.7 million, up 8.8% year on year. This number missed analysts’ expectations by 1%. It was a slower quarter as it also recorded a miss of analysts’ net interest income and revenue estimates. The stock is up 1.7% since reporting and currently trades at $44.17. Read our full, actionable report on S&T Bancorp here, it’s free. Late in 2025 into early 2026, there was hand wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. StockStory’s analyst team — all seasoned professional investors — uses quantitative analysis and automation to deliver market-beating insights faster and with higher quality.

Record financial performance: 1st Source reported 2025 net income up nearly 20% to $158 million and EPS of $6.41, with loans rising to just over $7.0 billion by Q1 2026 and average deposits above $7.3 billion; the bank repurchased ~13 million shares in 2025 and 23 million in Q1 2026 and raised its annual dividend to $1.52 (quarterly to $0.43, a 7.5% increase). CEO succession: Andrea Short became CEO on Oct. 1, 2025 in what management described as a "clean and successful" leadership transition, with the company saying it is well positioned for 2026 due to strong capital, ample liquidity, a diversified client franchise, and prudent risk management. Shareholder approvals: Shareholders re-elected all four director nominees and approved the advisory executive compensation vote, amended incentive and restricted stock plans, and ratified Forvis Mazars as auditor, with 92.61% of shares represented at the meeting. Interested in 1st Source Corporation? Here are five stocks we like better. 1st Source (NASDAQ:SRCE) highlighted record earnings, balance sheet growth, and leadership succession during its 2026 virtual annual shareholders meeting, where investors also approved director elections, executive pay, and several amended incentive and stock plans. Executive Chairman Christopher J. Murphy III opened the meeting by introducing the four directors standing for re-election: Murphy, Timothy Ozark, Todd F. Schurz, and Andrea Short. Murphy outlined each nominee’s professional background and experience, including Ozark’s career in mezzanine lending and leasing, Schurz’s leadership in communications and media, and Short’s decades of experience at 1st Source and in banking and finance roles. → Pipelines and Automation: 2 Energy Plays Built for Any Oil Price Murphy also reviewed the matters presented for shareholder vote, which included: Election of four directors Advisory approval of executive compensation Approval of the amended 1982 Executive Incentive Plan Approval of the amended Strategic Deployment Incentive Plan Approval of the amended 1982 Restricted Stock Award Plan Ratification of Forvis Mazars as the company’s accounting firm Chief Financial Officer Brett A. Bauer described 2025 as “a fantastic year,” saying the company “continued to build a fortress-like balance sheet,” maintained “disciplined credit management,” and delivered record earnings while focusing on long-term shareholder value. → Homebuilder Earnings: D.R. Horton Sticks Out as Pulte & NVR Sales Tank On funding, Bauer said average deposits in 2025 rose to “just over $7.3 billion,” driven primarily by savings and interest-bearing deposit growth and higher average certificate of deposit balances, reflecting customer preference for term products. He said average deposits were “modestly lower” in the first quarter of 2026, attributing the decline primarily to a deliberate reduction in brokered CD balances as part of the company’s funding strategy and a seasonal decline in public fund deposits. Loan and lease growth also continued, Bauer said. Average loans and leases increased to “just under $6.9 billion” in 2025 and rose to “just over $7 billion” in the first quarter of 2026. Bauer attributed growth largely to commercial loans—including renewable energy lines of business—along with support from the commercial real estate category. → Meta Platforms Earnings Preview: What to Watch in Q1 2026 Report On credit quality, Bauer said the company continued to maintain “appropriate levels of reserves.” He noted that non-performing assets increased in 2025 “largely due to a small number of isolated credits,” but said levels were “easily within a manageable range” relative to historical levels and remained stable into the first quarter of 2026. Financially, Bauer reported net income increased nearly 20% in 2025 to $158 million, with diluted earnings per share rising to $6.41. He said performance was driven by disciplined pricing on loans and deposits, which supported net interest margin, and continued expense management. Bauer said return on assets improved to 1.76% and return on equity to 13.16%, adding that the company carried momentum into the first quarter of 2026. Bauer also emphasized capital returns through buybacks and dividends. He said the company repurchased approximately 13 million of 1st Source stock in 2025 and an additional 23 million in the first quarter of 2026. On dividends, he said the company increased its annual common dividend to $1.52 per share in 2025, extending its streak to 38 consecutive years of dividend growth. Bauer added that the company had “just announced” a $0.03 increase in the quarterly dividend to $0.43 per share, which he said equates to a 7.5% increase. Murphy said 2025 was “critical” for the company’s future as it transitioned leadership to CEO Andrea Short, CFO Brett Bauer, and Kevin Murphy “along with a host of strong colleagues.” He described the succession as “clean and successful” and said Short had led well since becoming CEO on Oct. 1, 2025. In her remarks, Short said the company delivered a strong 2025 and was off to “a solid start in 2026,” noting that management had frequently discussed uncertainty in financial markets and a shifting political environment during the prior year. She said the company “prevailed with resilient operating fundamentals and prudent risk management,” and added that 1st Source remained well positioned for 2026 with “strong capital and ample liquidity,” a “diversified and growing client franchise,” and a “proven ability to manage risk through various cycles.” Short said the company’s mission remains constant, emphasizing fundamentals such as balanced long-term growth, service, expense management, and community leadership, while also seeking “smart opportunities to innovate and improve.” General Counsel and Corporate Secretary Brian Duba reported that 25,207,759 shares were eligible to vote, with 23,345,733 shares present by proxy or virtually—representing 92.61% of outstanding shares and constituting a quorum. Duba said preliminary results showed all four director nominees were elected and shareholders approved the advisory vote on executive compensation, the amended incentive and restricted stock plans, and the ratification of Forvis Mazars as independent registered public accounting firm. He said final voting results would be filed in a Form 8-K within three business days. No shareholder questions were submitted during the meeting, Bauer said, and Murphy adjourned the session. 1st Source Corporation is a bank holding company headquartered in South Bend, Indiana, operating through its wholly owned subsidiary, 1st Source Bank. The company offers a full range of commercial and consumer banking products, including checking and savings accounts, business and commercial lending, residential mortgage loans, and cash management services. Its client base spans small and medium-sized businesses, agribusinesses, professional firms, and individual consumers primarily across northern Indiana and southwestern Michigan. In addition to traditional banking services, 1st Source Corporation provides wealth management and trust services through its 1st Source Wealth Management division. The article "1st Source Touts Record Earnings, Growth and CEO Succession at 2026 Virtual Annual Meeting" was originally published by MarketBeat.