$SRCE

1ST SOURCE CORP

CIK:0000034782|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Loans and leases	$ 116,814	$ 117,230	$ 230,237	$ 230,790
Investment securities, taxable	12,402	8,602	24,106	16,755
Investment securities, tax-exempt	304	297	611	574
Other	1,561	1,087	2,260	2,401
Total interest income	131,081	127,216	257,214	250,520
Interest expense:
Deposits	34,465	39,106	67,043	78,952
Short-term borrowings	1,507	809	3,227	1,041
Subordinated notes	971	1,007	1,966	2,021
Long-term debt and mandatorily redeemable securities	996	1,102	1,698	2,376
Total interest expense	37,939	42,024	73,934	84,390
Net interest income	93,142	85,192	183,280	166,130
Provision for credit losses - loans and leases	1,978	7,884	8,988	9,996
(Recovery of) provision for credit losses - unfunded loan commitments	(439)	(194)	(177)	959
Provision for credit losses	1,539	7,690	8,811	10,955
Net interest income after provision for credit losses	91,603	77,502	174,469	155,175
Noninterest income:
Mortgage banking	858	1,116	1,869	1,969
Insurance commissions	1,791	1,685	4,302	4,125
Equipment rental	540	779	1,129	1,678
Gains (losses) on investment securities available-for-sale	13	(997)	13	(997)
Other	4,959	5,452	9,097	10,477
Total noninterest income	25,019	23,057	48,020	46,160
Noninterest expense:
Salaries and employee benefits	33,152	31,800	65,973	63,915
Net occupancy	3,387	3,035	6,935	6,259
Furniture and equipment	1,665	1,684	3,127	3,031
Data Processing	7,492	7,410	15,065	14,701
Depreciation - leased equipment	423	619	877	1,337
Professional fees	2,152	1,499	3,727	3,167
FDIC and other insurance	1,454	1,438	2,903	2,878
Business development and marketing	2,064	1,884	3,967	3,809
Other	3,236	3,061	6,968	6,409
Total noninterest expense	55,025	52,430	109,542	105,506
Income before income taxes	61,597	48,129	112,947	95,829
Income tax expense	14,055	10,803	25,444	20,980
Net income	47,542	37,326	87,503	74,849
Net loss (income) attributable to noncontrolling interests	2	(7)	(3)	(10)
Net income	$ 47,544	$ 37,319	$ 87,500	$ 74,839
Per common share:
Basic net income per common share (in dollars per share)	$ 1.95	$ 1.51	$ 3.58	$ 3.02
Diluted net income per common share (in dollars per share)	$ 1.95	$ 1.51	$ 3.58	$ 3.02
Basic weighted average common shares outstanding (in shares)	24,073,382	24,541,385	24,174,463	24,544,120
Diluted weighted average common shares outstanding (in shares)	24,073,382	24,541,385	24,174,463	24,544,120
Trust and wealth advisory
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	$ 8,692	$ 7,266	$ 15,710	$ 13,932
Service charges on deposit accounts
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	3,432	3,189	6,786	6,260
Debit card
Noninterest income:
Trust and wealth advisory, service charges on deposit accounts, and debit card income	$ 4,734	$ 4,567	$ 9,114	$ 8,716

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Statement of Cash Flows [Abstract]
Net income	$ 87,503	$ 74,849
Total provision for credit losses	8,811	10,955
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of premises and equipment	2,781	2,438
Depreciation of equipment owned and leased to others	877	1,337
Stock-based compensation	3,280	2,755
Net (accretion) amortization of investment securities available-for-sale	(1,682)	(1,551)
Amortization of mortgage servicing rights	397	350
Amortization of right of use assets	1,579	1,489
Deferred income taxes	4,153	(9,496)
Gains (losses) on investment securities available-for-sale	(13)	997
Originations of loans held for sale, net of principal collected	(38,452)	(27,577)
Proceeds from the sales of loans held for sale	38,989	25,895
Net gain on sale of loans held for sale	(661)	(83)
Net gain on sale of other real estate and repossessions	(377)	(57)
Change in interest receivable	886	422
Change in interest payable	308	(10,381)
Change in other assets	2,902	9,284
Change in other liabilities	(1,797)	36,025
Other	409	(1,006)
Net change in operating activities	109,893	116,645
Investing activities:
Proceeds from sales of investment securities available-for-sale	777	25,709
Proceeds from maturities and paydowns of investment securities available-for-sale	82,966	173,793
Purchases of investment securities available-for-sale	(102,109)	(79,110)
Net change in partnership investments	(14,008)	(6,961)
Net change in other investments	0	(1,715)
Loans sold or participated to others	41,789	25,985
Proceeds from principal payments on direct finance leases	52,488	39,686
Net change in loans and leases	(275,728)	(319,700)
Net change in equipment owned under operating leases	469	1,493
Purchases of premises and equipment	(2,482)	(4,333)
Proceeds from disposal of premises and equipment	131	15
Proceeds from sales of other real estate and repossessions	1,945	1,439
Net change in investing activities	(213,762)	(140,269)
Financing activities:
Net change in demand deposits and savings accounts	132,728	104,505
Net change in time deposits	73,942	108,129
Net change in short-term borrowings	(39,131)	(139,140)
Payments on long-term debt	(11,863)	(1,915)
Stock issued under stock purchase plans	132	133
Acquisition of treasury stock	(23,350)	(3,295)
Net (distributions to) contributions from noncontrolling interests	(330)	(1,768)
Cash dividends paid on common stock	(20,813)	(18,743)
Net change in financing activities	111,315	47,906
Net change in cash and cash equivalents	7,446	24,282
Cash and cash equivalents, beginning of year	119,857	124,826
Cash and cash equivalents, end of period	127,303	149,108
Non-cash transactions:
Loans transferred to other real estate and repossessions	3,697	4,315
Common stock matching contribution to Employee Stock Ownership and Profit Sharing Plan	859	1,227
Right of use assets obtained in exchange for lease obligations	4,179	692
Liquidation of noncontrolling interests	0	9,845
Cash paid (received) for:
Interest	73,627	94,770
Income Taxes	$ 14,924	$ (11,663)

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and due from banks	$ 67,497	$ 69,249
Federal funds sold and interest bearing deposits with other banks	59,806	50,608
Investment securities, available-for-sale, at fair value (amortized cost of $1,588,489 and $1,568,429 at June 30, 2026 and December 31, 2025, respectively)	1,527,689	1,522,486
Other investments	22,140	22,140
Mortgages held for sale	4,990	4,866
Loans and leases - net of unearned discount
Total loans and leases	7,219,944	7,046,669
Allowance for loan and lease losses	(166,354)	(161,846)
Net loans and leases	7,053,590	6,884,823
Equipment owned under operating leases, net	5,618	6,964
Premises and equipment, net	57,880	58,318
Goodwill and intangible assets	83,895	83,895
Accrued income and other assets	380,068	351,921
Total assets	9,263,173	9,055,270
Deposits:
Noninterest-bearing demand	1,606,287	1,600,495
Interest-bearing deposits:
Interest-bearing demand	2,669,991	2,592,202
Savings	1,495,425	1,446,278
Time	1,660,542	1,586,600
Total interest-bearing deposits	5,825,958	5,625,080
Total deposits	7,432,245	7,225,575
Short-term borrowings:
Federal funds purchased and securities sold under agreements to repurchase	63,494	112,470
Other short-term borrowings	135,996	126,151
Total short-term borrowings	199,490	238,621
Long-term debt and mandatorily redeemable securities	36,026	43,330
Subordinated notes	58,764	58,764
Accrued expenses and other liabilities	183,468	170,890
Total liabilities	7,909,993	7,737,180
SHAREHOLDERS' EQUITY
Preferred stock; no par value Authorized 10,000,000 shares; none issued or outstanding	0	0
Common stock; no par value Authorized 40,000,000 shares; issued 28,205,674 at June 30, 2026 and December 31, 2025	436,538	436,538
Retained earnings	1,084,880	1,015,160
Cost of common stock in treasury (4,123,848 shares at June 30, 2026 and 3,836,656 shares at December 31, 2025)	(164,514)	(141,950)
Accumulated other comprehensive loss	(46,516)	(34,777)
Total shareholders’ equity	1,310,388	1,274,971
Noncontrolling interests	42,792	43,119
Total equity	1,353,180	1,318,090
Total liabilities and equity	9,263,173	9,055,270
Commercial and agricultural
Loans and leases - net of unearned discount
Total loans and leases	857,330	797,592
Allowance for loan and lease losses	(23,885)	(21,983)
Renewable energy
Loans and leases - net of unearned discount
Total loans and leases	741,164	652,799
Allowance for loan and lease losses	(13,451)	(11,833)
Auto and light truck
Loans and leases - net of unearned discount
Total loans and leases	828,721	887,876
Allowance for loan and lease losses	(19,308)	(21,653)
Medium and heavy duty truck
Loans and leases - net of unearned discount
Total loans and leases	266,719	269,749
Allowance for loan and lease losses	(6,053)	(6,295)
Aircraft
Loans and leases - net of unearned discount
Total loans and leases	1,067,328	1,086,821
Allowance for loan and lease losses	(35,118)	(35,843)
Construction equipment
Loans and leases - net of unearned discount
Total loans and leases	1,275,465	1,221,135
Allowance for loan and lease losses	(29,948)	(27,529)
Commercial real estate
Loans and leases - net of unearned discount
Total loans and leases	1,313,213	1,269,765
Allowance for loan and lease losses	(26,694)	(25,396)
Residential real estate and home equity
Loans and leases - net of unearned discount
Total loans and leases	760,656	740,777
Allowance for loan and lease losses	(9,764)	(9,076)
Consumer
Loans and leases - net of unearned discount
Total loans and leases	109,348	120,155
Allowance for loan and lease losses	$ (2,133)	$ (2,238)