AI-extracted from the 10-Q filed 2026-10-22 — Q3 FY2026 (quarter ended September 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
1st Source's Q3 2026 net income rose to $49.5M ($2.03 diluted EPS) from $42.3M a year earlier, driven by a 9.7% rise in net interest income to $95.6M and a 4.2% quarterly loan growth lift in the balance sheet.
Biggest Revenue Drivers
Net interest income$95.6M+7.7% YoY
Net interest margin rose to 4.28% from 4.08%, with average loans and leases up $240.08M or 3.42%, partly offset by lower loan yields from Federal Reserve rate cuts in the second half of 2025.
Noninterest income$24.7M+12.7% YoY
Higher trust and wealth advisory fees on strong equity markets and elevated estate administration fees, plus higher other income from partnership gains, partly offset by securities losses.
Biggest Revenue Drivers
Total revenue: $120.3M+7.1% YoY
Net interest income$95.6M+7.7% YoY
Net interest margin rose to 4.28% from 4.08%, with average loans and leases up $240.08M or 3.42%, partly offset by lower loan yields from Federal Reserve rate cuts in the second half of 2025.
Noninterest income$24.7M+12.7% YoY
Higher trust and wealth advisory fees on strong equity markets and elevated estate administration fees, plus higher other income from partnership gains, partly offset by securities losses.
Largest Expense Items
Salaries and employee benefits$32.8M+1.7% YoY
Normal merit increases, higher incentive compensation and employee benefit plan contributions, offset by lower group insurance costs.
Total noninterest expense$55.2M+0.8% YoY
Professional fees rose on technology consulting and legal fees; lower depreciation on leased equipment and lower business development offset increases.
Provision for credit losses$0.9Mflat YoY
Loan growth and migration of a special attention commercial real estate relationship to a higher-reserved pool, offset by lower charge-offs.
Margins: Fully tax-equivalent net interest margin widened to 4.28% for the quarter from 4.09% a year earlier, as cost of interest-bearing liabilities fell 34 basis points while asset yields declined only six basis points.
Watch Items from the Filing
Nonaccrual loans and leases were $56.9M at September 30, 2026, with nonperforming assets at 0.81% of loans, down from 1.10% at year-end 2025.
Aircraft portfolio carries $303.85M of foreign exposure, mostly Mexico and Brazil, and the company notes collateral concentration and past periods of abrupt value declines.
Accumulated other comprehensive loss grew to $76.1M from $34.8M at year-end 2025 due to unrealized losses on available-for-sale securities, $98.4M gross unrealized losses at quarter end.
Commercial real estate portfolio has geographic concentration in northern Indiana and southwest Michigan, with a special attention credit migrated to a higher reserved pool this quarter.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Affleck-Graves John FDirectorGrant or award · Aug 4, 2026
Torres Isaac P.DirectorGrant or award · Aug 4, 2026
Shrewsbury RondaDirectorGrant or award · Aug 4, 2026
Ozark Timothy KDirectorGrant or award · Aug 4, 2026
Graham Tracy DDirectorGrant or award · Aug 4, 2026
Schurz Todd F.DirectorGrant or award · Aug 4, 2026
Murphy Christopher J IIIExecutive ChairmanGift · Jun 12, 2026
Murphy Carmen C10% ownerGift · Jun 12, 2026
Schwabero Mark DDirectorGrant or award · Jun 3, 2026
About 1ST SOURCE CORP (SRCE): stock profile, AI score and financials
1ST SOURCE CORP (SRCE) stock profile, AI quality score, and SEC EDGAR financial data, a Financials sector company. 13F Pro's AI-powered ranking engine scores SRCE at 61.6/100 on a composite quality score built from its SEC filings, placing it at rank #771 of 2,925 stocks — the top half of the AI-ranked universe. SRCE scores in the top quartile across profitability (95.8), free cash flow (95.0). Areas of concern include revenue scale (35.9), which score below median versus the broader universe. Shareholder dilution risk is elevated at 46.6/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q3 2026), 1ST SOURCE CORP reports quarterly revenue of $120.3M, net income of $49.5M, an operating margin of 53.3%. Top institutional holders of SRCE by reported 13-F value include 1ST SOURCE BANK, BlackRock, DIMENSIONAL FUND ADVISORS, based on the most recent SEC filings. SRCE trades on the Nasdaq exchange and files with the SEC under CIK 34782. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate SRCE daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for 1ST SOURCE CORP directly from SEC EDGAR.