1st Source Q4 net income rises nearly 31% yr/yr

Overview

• Indiana financial institution's Q4 net income rose 30.87% yr/yr

• Company's diluted EPS for Q4 increased 31.50% yr/yr

• Average loans and leases grew 5.10% in 2025

Outlook

• Company did not provide specific guidance for future quarters or full year

Result Drivers

• LOAN AND LEASE GROWTH - Average loans and leases increased by $336.29 mln or 5.10% during 2025, driven by growth in renewable energy, commercial real estate, and construction equipment portfolios

• NET INTEREST MARGIN EXPANSION - Tax-equivalent net interest margin expanded to 4.07% for 2025, up 43 basis points from 2024, due to higher rates on investment securities and stable loan rates

• NONINTEREST INCOME DECLINE - Noninterest income fell 0.82% in 2025 due to $8.68 mln in losses from repositioning securities, offset by gains in renewable energy investments and increased advisory income

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for 1st Source Corp is $69.00, about 2.4% above its January 21 closing price of $67.40

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nNFC4wzPWk

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