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what it is
1st Source is a regional bank that takes deposits, makes loans, and sells wealth and insurance services.
how it gets paid
Last year St Source made $514M in revenue. Commercial & consumer banking was the main engine at $267M, or 52% of sales.
why it's growing
Revenue grew 6.3% last year. The number that mattered was $4.74 in EPS because it dwarfs the prior-year quarter and shows how hard a small bank's earnings can snap higher.
what just happened
EPS hit $4.74, up 177% vs. prior year, while revenue reached $381M.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
90/100 earnings predictability — you can trust these numbers
10.8x trailing p/e — the market's not buying it — or you found a deal
2.4% dividend yield — cash in your pocket every quarter
$6.47 fy2025 eps est
xvary composite: 62/100 — average
What they do
1st Source is a regional bank that takes deposits, makes loans, and sells wealth and insurance services.
1st Source wins by being two things at once: your local bank in Indiana and a niche lender with 18 specialty finance locations nationwide. If you are a business owner who needs aircraft or construction equipment financing, you do not shop for that loan like a checking account. That mix sits on top of 78 banking centers and $7.2 billion in deposits, which is cheap funding → low-cost money customers leave in the bank → so what: it helps protect profits.
How they make money
$514M
annual revenue · their business grew +6.3% last year
Commercial & consumer banking
$267M
+5.0%
Specialty finance
$144M
+9.0%
Wealth advisory
$51M
+4.0%
Insurance
$36M
+3.0%
Other banking services
$16M
+1.0%
The products that matter
business loans and treasury services
Commercial Banking
core operating engine
it sits at the center of a bank that generated all $514M in annual revenue and a 37.6% net profit margin.
all revenue rolls up here
retail deposits and household lending
Consumer Banking
funding base
it helps fund the lending book behind a business earning 12.4% return on equity. for a regional bank, deposits are inventory.
supports the spread
Key numbers
10.8x
trailing p/e
You are paying 10.8 times earnings for a bank with 10.5% past earnings growth, which is cheap by normal bank standards.
$9.1B
total assets
This tells you the scale. SRCE is small in market cap terms, but it runs a real bank balance sheet.
$6.9B
loans and leases
Loans are the earning engine. More loans usually mean more interest income, but also more credit risk.
2.4%
dividend yield
You get paid while you wait, and the dividend has grown 7.0% annually in the past.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 80 / 100
- long-term debt $98M (6% of capital)
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for SRCE right now.
source: institutional data · return history unavailable
What just happened
beat estimates
EPS hit $4.74, up 177% vs. prior year, while revenue reached $381M.
The quarter was loud on paper: revenue jumped 191% vs. prior year to $381M, and EPS rose from a much smaller base. Consensus data also shows a 3.73% EPS surprise, while revenue was basically in line with a 0.08% miss.
$381M
revenue
$4.74
eps
+177%
eps growth
the number that mattered
The number that mattered was $4.74 in EPS because it dwarfs the prior-year quarter and shows how hard a small bank's earnings can snap higher when conditions cooperate.
source: company earnings report, 2026
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What could go wrong
the top risk is the valuation staying cheap because SRCE is still just a regional bank to most investors.
med
the multiple never rerates
The bull case starts with a gap: 10.5x trailing earnings versus a 13.5x peer average. If investors keep treating 1st Source as an average regional bank, that gap can stay open for a long time.
the whole upside case depends on that 3.0-turn valuation discount narrowing
med
margin strength fades
A 37.6% net profit margin is doing a lot of the storytelling here. If loan yields soften, funding costs rise, or credit costs normalize higher, the "cheap quality bank" narrative gets thinner fast.
if the 37.6% margin slips, the low multiple may turn out to be fair
med
commercial banking concentration cuts both ways
This snapshot rolls the business into one $514M revenue line, but the operating reality is still a regional lender. When your main engine is commercial banking, underwriting discipline matters more than narrative.
all $514M of revenue depends on a bank model that works best when credit stays boring
SRCE does not need a heroic growth story. It needs earnings to stay steady, the margin to stay high, and the market to decide that 10.5x earnings is too cheap for that setup.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
net profit margin
37.6% is unusually strong for a regional bank. if that number starts moving down, the cheap multiple stops looking like a bargain and starts looking like a warning.
trend
revenue growth pace
Revenue grew 6.3% last year. that's healthy for this size of bank, but not enough by itself to force a rerating. you want steady growth, not a stall.
risk
valuation gap vs peers
SRCE trades at 10.5x earnings versus a 13.5x peer average. if the gap stays wide after clean quarters, the market is telling you it does not buy the quality story.
calendar
next earnings release
The current feed does not show the next report date. still, this is the checkpoint that matters most because one more clean quarter would test whether the discount can keep holding.
Analyst rankings
earnings predictability
90 / 100
management has produced a stable earnings pattern. in human-speak, analysts think this bank is usually boring in the good way.
risk rank
3
Risk rank 3 means it's safer than many stocks, but not a bunker. you're still owning a cyclical financial business.
price stability
80 / 100
Price stability of 80 says the stock tends to move with less drama than most small caps. that matters if you want a bank, not a blood pressure test.
source: institutional data
Institutional activity
institutional ownership data for SRCE is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$70
current price
n/a
target midpoint · n/a from current
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