SRCE earnings analysis
What we found in SRCE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
1st Source reported a mixed but stable Q1 2026: diluted EPS of $1.63 and net income of $39.96 million (up from $37.52 million YoY) while taxable-equivalent net interest income improved to $90.293 million (up 11.36% YoY). Credit costs rose materially (provision for credit losses $7.27 million; net charge-offs $3.96 million), nonperforming assets remain elevated at $73.415 million, and liquidity/capital metrics stayed strong (total liquidity $3.52 billion; shareholders’ equity $1.28 billion). Management gave no quantitative forward guidance in this 10-Q; they flagged modestly deteriorated economic forecasts and raised allowance/forecast adjustments accordingly.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- EPS and net income up YoY
- Diluted EPS was $1.63 for the quarter (up from $1.52 in Q1 2025) and net income available to common shareholders was $39.96 million vs $37.52 million a year ago.
- Net interest income expansion
- Taxable-equivalent net interest income was $90.293 million for the three months ended March 31, 2026, an increase of 11.36% vs the three months ended March 31, 2025.
- Loan growth
- Total loans and leases increased to $7.08 billion at March 31, 2026, up $36.86 million (0.52%) from December 31, 2025; average loans and leases increased $223.81 million or 3.29% YoY.
- Strong liquidity and capital levels
- Total net available liquidity was $3.52 billion (about 50% of total deposits net of brokered/listing services) and shareholders’ equity was $1.28 billion at March 31, 2026.
- Revenue mix — fee businesses growing
- Trust & wealth advisory revenue was $7.018 million (up 5.28% YoY), service charges on deposit accounts were $3.354 million (up 9.22% YoY), and debit card revenue was $4.380 million (up 5.57% YoY).
- Capital return in quarter
- Management repurchased $23.35 million of common stock during the quarter and paid $9.79 million of dividends in Q1 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Rising credit costs
- Provision for credit losses increased to $7.27 million in Q1 2026 from $3.27 million in Q1 2025, driven by deteriorating forward-looking forecast assumptions.
- Net charge-offs elevated
- Net charge-offs were $3.96 million (0.23% of average loans and leases) in Q1 2026 versus $0.18 million (0.01%) in Q1 2025, concentrated in auto & light truck, construction equipment and consumer portfolios.
- Nonperforming assets higher YoY
- Nonperforming assets were $73.415 million at March 31, 2026, a 70.45% increase from $43.072 million on March 31, 2025 (though down 5.12% from $77.378 million at December 31, 2025).
- Short-term funding increased
- Short-term borrowings rose to $289.18 million at March 31, 2026, an increase of $50.56 million or 21.19% from December 31, 2025.
- Marked-to-market AOCI deterioration
- Accumulated other comprehensive loss increased to $40.90 million at March 31, 2026 from $34.78 million at December 31, 2025 due to market conditions in the available-for-sale investment portfolio.
- Lower cash balances vs prior year
- Cash and cash equivalents decreased to $118.81 million at March 31, 2026 from $222.82 million at March 31, 2025, driven by loan funding and securities purchases.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.63
- Segment
- Trust & wealth advisory: $7,018,000 (up 5.28% YoY)
- Segment
- Service charges on deposit accounts: $3,354,000 (up 9.22% YoY)
- Segment
- Debit card: $4,380,000 (up 5.57% YoY)
What they said about what is next.
The MD&A contains forward-looking language about economic uncertainty and adjustments to forecast assumptions but provides no quantitative revenue or EPS guidance in this 10-Q; numeric outlook was not provided in the filing.
The filing reads about the same as the one before it.
What came before.
- 10-K · February 17, 2026
- 1st Source’s 2025 10-K emphasizes steady community-focused commercial banking and a growing Specialty Finance franchise, reporting consolidated assets of $9.06 billion and a well‑capitalized bank at December 31, 2025.…
- 10-Q · October 23, 2025
- 1st Source reported Q3 2025 net interest income of $88,750,000 and total noninterest income of $21,906,000 for implied total revenue of $110,656,000. Diluted EPS was $1.71 (up from $1.41 in Q3 2024) and net income for…
- 10-Q · July 24, 2025
- 1st Source reported Q2 2025 total revenue of $108,249,000, up $10,978,000 (+11.3%) year-over-year and up $4,208,000 (+4.0%) sequentially. Diluted EPS was $1.51 (vs $1.49 in Q2 2024), net income was $37,326,000, and net…
- 10-K · February 18, 2025
- 1st Source positions itself as a relationship-driven regional bank with a diversified business mix: commercial and consumer banking through 77 banking centers, a Specialty Finance Group with 18 locations nationwide,…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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