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1St Source
(NASDAQ:SRCE)
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Rating:74Outperform
Price Target:
$102.00
▲(18.83% Upside)
Action:Reiterated
Date:08/05/26
SRCE scores well primarily due to strong profitability and a strengthening balance sheet, supported by reasonable valuation. The score is held back by near-term pressures visible in the TTM revenue decline and the sharp drop in free cash flow, while technicals remain bullish but appear overextended, increasing pullback risk.
Positive Factors
Profitability (ROE & Margins)
Sustained high ROE and persistent net margins indicate the bank earns strong spreads versus its capital base and preserves earnings power. This durability supports internal capital generation, dividend capacity and resilience to modest revenue shocks over a multi-quarter horizon.
Negative Factors
TTM Revenue Decline
A sustained revenue pullback over the trailing year signals potential pressure on core loan yields, fee income or origination activity. If revenue contraction persists, it compresses operating leverage and makes maintaining high margins and ROE more challenging across the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability (ROE & Margins)
Sustained high ROE and persistent net margins indicate the bank earns strong spreads versus its capital base and preserves earnings power. This durability supports internal capital generation, dividend capacity and resilience to modest revenue shocks over a multi-quarter horizon.
Read all positive factors
1St Source (SRCE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.16B
Dividend Yield1.79%
Average Volume (3M)145.22K
Price to Earnings (P/E)12.9
Beta (1Y)0.72
Revenue Growth4.33%
EPS Growth21.67%
CountryUS
Employees1,190
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.98
Shares Outstanding24,081,825
10 Day Avg. Volume132,955
30 Day Avg. Volume145,221
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)1.20
Price to Sales (P/S)2.54
P/FCF Ratio7.15
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$89.67Price Target Upside4.46% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)6.8
Revenue Forecast (FY)$459.34M
1St Source Business Overview & Revenue Model
Company Description
As the parent company of 1st Source Bank, 1st Source Corporation delivers a comprehensive suite of financial solutions, encompassing commercial and retail banking, wealth management, and insurance offerings, to both individual and corporate custom...
How the Company Makes Money
1st Source primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is earned on the spread between interest and fees collected on earning assets—such as commercial loans, consumer loans, specialty fina...
1St Source Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
84
Very Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 608.55M | 600.00M | 570.32M | 507.53M | 385.08M | 354.86M |
| Gross Profit | 443.08M | 421.93M | 374.66M | 363.40M | 341.49M | 341.03M |
| EBITDA | 228.01M | 214.03M | 183.42M | 177.14M | 175.87M | 178.88M |
| Net Income | 170.93M | 158.27M | 132.62M | 124.93M | 120.51M | 118.53M |
Balance Sheet | ||||||
| Total Assets | 9.26B | 9.06B | 8.93B | 8.73B | 8.34B | 8.10B |
| Cash, Cash Equivalents and Short-Term Investments | 1.60B | 1.59B | 1.02B | 1.70B | 1.86B | 1.92B |
| Total Debt | 294.28M | 340.71M | 325.05M | 397.39M | 302.94M | 309.44M |
| Total Liabilities | 7.91B | 7.74B | 7.75B | 7.66B | 7.42B | 7.13B |
| Stockholders Equity | 1.31B | 1.27B | 1.11B | 989.57M | 864.07M | 916.25M |
Cash Flow | ||||||
| Free Cash Flow | 218.74M | 213.03M | 181.49M | 181.96M | 173.15M | 163.88M |
| Operating Cash Flow | 216.37M | 223.12M | 194.07M | 187.94M | 175.53M | 166.76M |
| Investing Cash Flow | -228.33M | -154.22M | -276.61M | -358.29M | -784.87M | -598.56M |
| Financing Cash Flow | -9.84M | -73.87M | 77.91M | 177.22M | 206.95M | 713.94M |
1St Source Risk Analysis
1St Source disclosed 23 risk factors in its most recent earnings report. 1St Source reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
1St Source Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.84B | 13.98 | 9.74% | 2.74% | 2.45% | ― | |
77 Outperform | $1.91B | 13.42 | 12.17% | 2.48% | 21.78% | 43.92% | |
74 Outperform | $2.16B | 12.86 | 13.41% | 1.88% | 4.33% | 21.67% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $2.53B | 11.08 | 11.64% | 0.88% | -4.89% | 9.27% | |
59 Neutral | $2.91B | 32.22 | 4.98% | ― | 13.23% | 850.00% |
* Financial Sector Average
SRCE
1St Source
89.34
32.39
56.88%
GABC
German American Bancorp
50.79
13.69
36.88%
STBA
S&T Bancorp
51.65
16.71
47.82%
MBIN
Merchants Bancorp
54.06
24.31
81.71%
CLBK
Columbia Financial
10.84
4.42
68.90%
1St Source Corporate Events
Business Operations and StrategyFinancial Disclosures
1st Source Highlights Q2 Growth and Digital Modernization
Positive
Aug 5, 2026
In its investor presentation for the second quarter of 2026, 1st Source Corporation highlighted a diversified business mix split between community banking and specialty finance, supported by 78 banking centers, dedicated wealth advisory and insura...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.