Form 8-K

8-K — 1ST SOURCE CORP

Accession: 0000034782-26-000027

Filed: 2026-04-23

Period: 2026-04-23

CIK: 0000034782

SIC: 6022 (STATE COMMERCIAL BANKS)

Item: Results of Operations and Financial Condition

Item: Financial Statements and Exhibits

Documents

8-K — source-20260423.htm (Primary)

EX-99.1 — EX-99.1 1ST QTR 2026 EARNINGS RELEASE (ex03312026991pressrelease.htm)

GRAPHIC — CORP LOGO (pressreleasecorplogoa.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K — 8-K 1ST QTR 2026 EARNINGS RELEASE

8-K (Primary)

Filename: source-20260423.htm · Sequence: 1

source-20260423

false000003478200000347822026-04-232026-04-23

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): April 23, 2026

1st Source Corporation

(Exact name of registrant as specified in its charter)

Indiana

0-6233 35-1068133

(State or other jurisdiction of incorporation) (Commission File No.) (I.R.S. Employer Identification No.)

100 North Michigan Street, South Bend, Indiana 46601

(Address of principal executive offices) (Zip Code)

574-235-2000

(Registrant's telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Common Stock - without par value SRCE The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

ITEM 2.02 Results of Operations and Financial Condition.

On April 23, 2026, 1st Source Corporation issued a press release that announced its first quarter earnings for 2026. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

ITEM 9.01 Financial Statements and Exhibits.

Exhibit 99.1: Press release dated April 23, 2026, with respect to 1st Source Corporation’s financial results for the first quarter ended March 31, 2026.

101 Pursuant to Rule 406 of Regulation S-T, the cover page is formatted in Inline XBRL (Inline eXtensible Business reporting Language).

104 Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

1st SOURCE CORPORATION

(Registrant)

Date: April 23, 2026

/s/ BRETT A. BAUER

Brett A. Bauer

Treasurer and Chief Financial Officer

Principal Accounting Officer

EX-99.1 — EX-99.1 1ST QTR 2026 EARNINGS RELEASE

EX-99.1

Filename: ex03312026991pressrelease.htm · Sequence: 2

Document

Exhibit 99.1

For: Immediate Release Contact: Brett Bauer

April 23, 2026 574-235-2000

1st Source Corporation Reports Record First Quarter Results,

Increased Cash Dividend Declared

QUARTERLY HIGHLIGHTS

•Net income was $39.96 million for the quarter, up $2.44 million or 6.49% from the first quarter of 2025 and down $1.19 million or 2.88% from the previous quarter. Diluted net income per common share was $1.63, up $0.11 or 7.24% from the prior year’s first quarter of $1.52 and down $0.04 or 2.40% from the previous quarter.

•Return on average assets was 1.80% for the current quarter, up from 1.72% in the first quarter of 2025 and unchanged from the previous quarter. Return on average common shareholders’ equity decreased to 12.53% compared to 13.33% in the first quarter of 2025 and 12.94% in the previous quarter.

•A cash dividend increase of three cents per share to $0.43 per common share for the quarter was approved, up five cents or 13.16% from the cash dividend declared a year ago.

•During the first quarter of 2026, 338,356 shares were repurchased for $23.35 million and placed into treasury.

•Average loans and leases grew $223.81 million, or 3.29% from the first quarter of 2025 and increased $69.67 million or 1.00% from the previous quarter.

•Average deposits decreased $141.97 million or 1.94% from the first quarter a year ago and decreased $229.44 million or 3.09% from the previous quarter. Average deposits, net of brokered deposits, increased $212.25 million or 3.16% from the first quarter of 2025 and decreased $106.42 million or 1.51% from the previous quarter.

•Tax-equivalent net interest income was $90.29 million, up $9.21 million, or 11.36% from the first quarter a year ago and down $3.16 million or 3.38% from the previous quarter. Tax-equivalent net interest margin was 4.25%, up 35 basis points from the first quarter of 2025 and down four basis points from the previous quarter. Higher yields on investment securities from portfolio repositioning trades during 2025 helped limit margin contraction partially offset by lower net interest recoveries compared to the previous quarter.

•Provision for credit losses of $7.27 million was recorded during the quarter compared to $3.27 million during the previous year’s first quarter and $0.71 million in the previous quarter. The allowance for loan and lease losses as a percentage of total loans and leases rose to 2.33% at March 31, 2026, up from 2.29% at March 31, 2025 and 2.30% at December 31, 2025.

South Bend, IN - 1st Source Corporation (NASDAQ: SRCE), parent company of 1st Source Bank, today reported quarterly net income of $39.96 million for the first quarter of 2026, up 6.49% compared to $37.52 million in the first quarter a year ago and down 2.88% compared to $41.14 million reported in the previous quarter. Diluted net income per common share for the first quarter of 2026 was $1.63, up 7.24% versus $1.52 in the first quarter of 2025 and down 2.40% compared to $1.67 in the previous quarter.

At its April 2026 meeting, the Board of Directors approved an increase in the cash dividend of three cents per share, raising the approved dividend for the quarter to $0.43 per common share, up five cents or 13.16% from the cash dividend declared a year ago. The cash dividend is payable to shareholders of record on May 5, 2026, and will be paid on May 15, 2026.

- 1 -

Andrea G. Short, President and Chief Executive Officer, commented, “We are pleased to announce that 1st Source had a record first quarter. We ended 2025 and the first quarter of 2026 with a very strong and stable balance sheet and we will continue to focus on safety and soundness given the level of economic uncertainty currently impacting our clients and their businesses. During the first quarter of 2026, average loans and leases grew $69.67 million, up 1.00% from the previous quarter, our liquidity position remained solid, and our historically conservative capital position was maintained.

“We were happy to learn that 1st Source received several awards, further solidifying that our mission-first approach is the right way to do business. On a national scale, we were included in Forbes’ America’s Best Banks list for the third consecutive year and came in at #11 out of the top 100 named. This award is driven by 10 metrics measuring growth, credit quality, and profitability.

“Additionally, we learned that 1st Source was listed as #12 on Forbes’ America’s Best Midsize Employers list. This award is especially meaningful because it identifies companies that are rated most highly by their employees. Respondents ranked their employers on a range of criteria including salary, work environment, and opportunities to advance. We greatly value this feedback, and it aligns with our culture and core values of integrity, teamwork, superior quality, outstanding client service, and community leadership.

“And finally, at the state level, 1st Source was recognized for our small business lending across Indiana for the 13th year in a row by the Indiana District Office of the U.S. Small Business Administration (SBA). We once again received the Community Bank Gold Level Award for delivering the greatest number of SBA loans in Indiana in 2025.” Mrs. Short concluded.

FIRST QUARTER 2026 FINANCIAL RESULTS

Loans and Leases

First quarter average loans and leases were $7.02 billion, which was up $223.81 million or 3.29% from the first quarter of 2025 and increased $69.67 million or 1.00% from the previous quarter. Average loan growth in the first quarter of 2026 occurred mainly within the Renewable Energy, Commercial and Agricultural, and Commercial Real Estate portfolios.

Deposits

First quarter average deposits were $7.19 billion, which was down $141.97 million or 1.94% compared to the first quarter a year ago and decreased $229.44 million or 3.09%, from the previous quarter. Average deposit balances decreased from the previous quarter primarily due to lower brokered deposits, seasonal outflows of interest-bearing public fund deposits, and decreased noninterest-bearing demand deposits. Average brokered deposits were $259.29 million, a decrease of $354.23 million or 57.74% from the prior year first quarter and were $123.02 million or 32.18% lower than the previous quarter.

Net Interest Income and Net Interest Margin

First quarter 2026 tax-equivalent net interest income increased $9.21 million, or 11.36% from the first quarter a year ago and decreased $3.16 million to $90.29 million, down 3.38% from the previous quarter.

First quarter 2026 net interest margin was 4.24%, an increase of 35 basis points from the same period in 2025 and a decrease of four basis points from the 4.28% in the previous quarter. On a fully tax-equivalent basis, first quarter 2026 net interest margin was 4.25%, an increase of 35 basis points from the same period in 2025 and down four basis points compared to the 4.29% in the previous quarter. The increase from the first quarter of 2025 was primarily due to higher average loan and lease balances, improved yields on investments from portfolio repositioning trades made in 2025, and lower interest-bearing deposit costs. The decrease from the prior quarter was primarily due to lower yields on loans and leases and higher short-term borrowing costs offset by increased yields on investments from portfolio repositioning trades executed during 2025 and lower interest-bearing deposit costs. Net interest recoveries had a positive one basis point impact during the first quarter on the tax-equivalent net interest margin, compared to a positive seven basis points in the prior year first quarter and positive 14 basis points during the previous quarter.

Noninterest Income

First quarter 2026 noninterest income of $23.00 million was relatively flat compared to the first quarter a year ago and increased $5.46 million or 31.16% compared to the previous quarter.

- 2 -

The increase from the previous quarter was mainly due to available-for-sale securities losses of $5.81 million realized in the prior quarter and increased insurance commissions, offset by lower brokerage fees and commissions, lower interest rate swap fees, a reduction in debit card income, and lower deposit account fees.

Noninterest Expense

First quarter 2026 noninterest expense of $54.52 million increased $1.44 million or 2.71% from the first quarter a year ago and decreased $2.04 million or 3.61% compared to the prior quarter.

The increase in noninterest expense compared to the first quarter of 2025 was the result of increased salaries and wages due to normal merit increases, higher occupancy expenses from snow removal, increased data processing charges and a rise in debit card losses. These increases were offset by lower leased equipment depreciation and a decrease in legal fees.

The decrease in noninterest expense compared to the prior quarter was the result of reduced incentive compensation and fewer group insurance claims, lower professional consulting costs, decreased furniture and equipment expense, lower intangible asset amortization, and fewer business development and marketing expenses.

Credit

The allowance for loan and lease losses increased to $164.90 million as of March 31, 2026, or 2.33% of total loans and leases. The 2.33% is an increase compared to 2.29% at March 31, 2025 and 2.30% at December 31, 2025 due to a weakened economic outlook with increased uncertainty. Net charge-offs of $3.96 million were recorded for the first quarter of 2026, compared with net charge-offs of $0.18 million in the same quarter a year ago and net charge-offs of $0.28 million in the prior quarter.

The provision for credit losses was $7.27 million for the first quarter of 2026, an increase of $4.01 million compared with the same period in 2025 and an increase of $6.56 million from the previous quarter. Higher net charge-offs during the quarter, the majority of which were from two unique Auto and Light Truck accounts who provide special trailer units serving the film industry, were the primary reason for the increase in the provision for credit losses. The ratio of nonperforming assets to loans and leases was 1.03% as of March 31, 2026, compared to 0.63% on March 31, 2025 and 1.10% on December 31, 2025. The decrease in nonperforming assets during the quarter was primarily from lower nonaccrual loans and leases partially offset by an increase in repossessed assets.

Capital

As of March 31, 2026, the common equity-to-assets ratio was 14.02%, compared to 12.96% a year ago and 14.08% at December 31, 2025. The tangible common equity-to-tangible assets ratio was 13.22% at March 31, 2026, compared to 12.14% a year earlier and 13.28% at December 31, 2025. The Common Equity Tier 1 ratio, calculated under banking regulatory guidelines, was 15.30% at March 31, 2026, compared to 14.71% a year ago and 15.52% at December 31, 2025.

During the first quarter of 2026, 338,356 shares were repurchased for treasury reducing common shareholders’ equity by $23.35 million.

ABOUT 1ST SOURCE CORPORATION

1st Source common stock is traded on the NASDAQ Global Select Market under “SRCE” and appears in the National Market System tables in many daily newspapers under the code name “1st Src.” Since 1863, 1st Source has been committed to the success of its clients, individuals, businesses and the communities it serves. For more information, visit www.1stsource.com.

- 3 -

1st Source serves the northern half of Indiana and southwest Michigan and is the largest locally controlled financial institution headquartered in the area. While delivering a comprehensive range of consumer and commercial banking services through its community bank offices, 1st Source has distinguished itself with highly personalized services. 1st Source Bank also competes for business nationally by offering specialized financing services for new and used private and cargo aircraft, automobiles for leasing and rental agencies, medium and heavy-duty trucks, and construction equipment. The Corporation includes 78 banking centers, 16 1st Source Bank Specialty Finance Group locations nationwide, nine Wealth Advisory Services locations, 13 1st Source Insurance offices, and three loan production offices.

FORWARD LOOKING STATEMENTS

Except for historical information contained herein, the matters discussed in this document express “forward-looking statements.” Generally, the words “believe,” “contemplate,” “seek,” “plan,” “possible,” “assume,” “hope,” “expect,” “intend,” “targeted,” “continue,” “remain,” “estimate,” “anticipate,” “project,” “will,” “should,” “indicate,” “would,” “may” and similar expressions indicate forward-looking statements. Those statements, including statements, projections, estimates or assumptions concerning future events or performance, and other statements that are other than statements of historical fact, are subject to material risks and uncertainties. 1st Source cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made.

1st Source may make other written or oral forward-looking statements from time to time. Readers are advised that various important factors could cause 1st Source’s actual results or circumstances for future periods to differ materially from those anticipated or projected in such forward-looking statements. Such factors, among others, include changes in laws, regulations or accounting principles generally accepted in the United States; 1st Source’s competitive position within its markets served; increasing consolidation within the banking industry; unforeseen changes in interest rates; unforeseen downturns in the local, regional or national economies or in the industries in which 1st Source has credit concentrations; and other risks discussed in 1st Source’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K, which filings are available from the SEC. 1st Source undertakes no obligation to publicly update or revise any forward-looking statements.

NON-GAAP FINANCIAL MEASURES

The accounting and reporting policies of 1st Source conform to generally accepted accounting principles (“GAAP”) in the United States and prevailing practices in the banking industry. However, certain non-GAAP performance measures are used by management to evaluate and measure the Company’s performance. Although these non-GAAP financial measures are frequently used by investors to evaluate a financial institution, they have limitations as analytical tools, and should not be considered in isolation, or as a substitute for analyses of results as reported under GAAP. These include taxable-equivalent net interest income (including its individual components), net interest margin (including its individual components), the efficiency ratio, tangible common equity-to-tangible assets ratio and tangible book value per common share. Management believes that these measures provide users of the Company’s financial information with a more meaningful view of the performance of the interest-earning assets and interest-bearing liabilities and of the Company’s operating efficiency. Other financial holding companies may define or calculate these measures differently.

Management reviews yields on certain asset categories and the net interest margin of the Company and its banking subsidiaries on a fully taxable-equivalent (“FTE”) basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. Net interest income on a FTE basis is also used in the calculation of the Company’s efficiency ratio. The efficiency ratio, which is calculated by dividing non-interest expense by total taxable-equivalent net revenue (less securities gains or losses and lease depreciation), measures how much it costs to produce one dollar of revenue. Securities gains or losses and lease depreciation are excluded from this calculation to better match revenue from daily operations to operational expenses. Management considers the tangible common equity-to-tangible assets ratio and tangible book value per common share as useful measurements of the Company’s equity.

See the table marked “Reconciliation of Non-GAAP Financial Measures” for a reconciliation of certain non-GAAP financial measures used by the Company with their most closely related GAAP measures.

# # #

(charts attached)

- 4 -

1st SOURCE CORPORATION

1st QUARTER 2026 FINANCIAL HIGHLIGHTS

(Unaudited - Dollars in thousands, except per share data)

Three Months Ended

March 31, December 31, March 31,

2026 2025 2025

AVERAGE BALANCES

Assets $ 9,020,305 $ 9,070,471 $ 8,856,278

Earning assets 8,618,611 8,651,605 8,434,790

Investments 1,527,070 1,519,175 1,519,177

Loans and leases 7,022,759 6,953,090 6,798,952

Deposits 7,191,569 7,421,006 7,333,542

Interest bearing liabilities 5,930,767 5,956,902 5,920,255

Common shareholders’ equity 1,292,902 1,261,725 1,141,922

Total equity 1,335,986 1,306,954 1,208,236

INCOME STATEMENT DATA

Net interest income $ 90,138 $ 93,295 $ 80,938

Net interest income - FTE(1)

90,293 93,453 81,085

Provision for credit losses 7,272 711 3,265

Noninterest income 23,001 17,537 23,103

Noninterest expense 54,517 56,557 53,076

Net income 39,961 41,131 37,523

Net income available to common shareholders 39,956 41,142 37,520

PER SHARE DATA

Basic net income per common share $ 1.63 $ 1.67 $ 1.52

Diluted net income per common share 1.63 1.67 1.52

Common cash dividends declared 0.40 0.40 0.36

Book value per common share(2)

53.10 52.32 47.29

Tangible book value per common share(1)

49.61 48.88 43.87

Market value - High 71.98 67.39 67.77

Market value - Low 60.30 56.89 53.23

Basic weighted average common shares outstanding 24,276,666 24,391,070 24,546,819

Diluted weighted average common shares outstanding 24,276,666 24,391,070 24,546,819

KEY RATIOS

Return on average assets 1.80 % 1.80 % 1.72 %

Return on average common shareholders’ equity 12.53 12.94 13.33

Average common shareholders’ equity to average assets 14.33 13.91 12.89

End of period tangible common equity to tangible assets(1)

13.22 13.28 12.14

Risk-based capital - Common Equity Tier 1(3)

15.30 15.52 14.71

Risk-based capital - Tier 1(3)

16.54 16.79 16.20

Risk-based capital - Total(3)

17.80 18.05 17.46

Net interest margin 4.24 4.28 3.89

Net interest margin - FTE(1)

4.25 4.29 3.90

Efficiency ratio: expense to revenue 48.19 51.03 51.01

Efficiency ratio: expense to revenue - adjusted(1)

48.16 48.56 51.31

Net charge-offs to average loans and leases 0.23 0.02 0.01

Loan and lease loss allowance to loans and leases 2.33 2.30 2.29

Nonperforming assets to loans and leases 1.03 1.10 0.63

March 31, December 31, September 30, June 30, March 31,

2026 2025 2025 2025 2025

END OF PERIOD BALANCES

Assets $ 9,113,429 $ 9,055,270 $ 9,056,691 $ 9,087,162 $ 8,963,114

Loans and leases 7,083,528 7,046,669 6,964,454 7,097,969 6,863,393

Deposits 7,227,596 7,225,575 7,409,819 7,442,669 7,417,765

Allowance for loan and lease losses 164,898 161,846 161,430 163,484 157,470

Goodwill and intangible assets 83,895 83,895 83,895 83,895 83,895

Common shareholders’ equity 1,277,956 1,274,971 1,236,472 1,198,589 1,161,459

Total equity 1,320,838 1,318,090 1,291,431 1,257,424 1,220,542

ASSET QUALITY

Loans and leases past due 90 days or more $ 398 $ 460 $ 317 $ 198 $ 122

Nonaccrual loans and leases 71,652 76,602 62,264 71,732 40,540

Other real estate — — 120 — —

Repossessions 1,319 267 435 3,549 2,410

Equipment owned under operating leases 46 49 56 62 —

Total nonperforming assets $ 73,415 $ 77,378 $ 63,192 $ 75,541 $ 43,072

(1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio.

(2) Calculated as common shareholders’ equity divided by common shares outstanding at the end of the period.

(3) Calculated under banking regulatory guidelines.

- 5 -

1st SOURCE CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited - Dollars in thousands)

March 31, December 31, September 30, March 31,

2026 2025 2025 2025

ASSETS

Cash and due from banks $ 67,670 $ 69,249 $ 75,316 $ 87,816

Federal funds sold and interest bearing deposits with other banks 51,136 50,608 138,942 135,003

Investment securities available-for-sale, at fair value

(amortized cost of $1,583,272, $1,568,429, $1,555,564, and $1,591,072 at March 31, 2026, December 31, 2025, September 30, 2025, and March 31, 2025, respectively)

1,529,593 1,522,486 1,495,117 1,501,877

Other investments 22,140 22,140 22,140 23,855

Mortgages held for sale 3,142 4,866 7,110 2,305

Loans and leases, net of unearned discount:

Commercial and agricultural 821,818 797,592 759,167 775,118

Renewable energy 713,110 652,799 603,715 505,413

Auto and light truck 831,365 887,876 924,992 955,945

Medium and heavy duty truck 264,165 269,749 280,302 289,837

Aircraft 1,073,282 1,086,821 1,095,423 1,118,099

Construction equipment 1,210,493 1,221,135 1,207,446 1,171,934

Commercial real estate 1,319,361 1,269,765 1,244,306 1,230,760

Residential real estate and home equity 735,743 740,777 726,585 689,101

Consumer 114,191 120,155 122,518 127,186

Total loans and leases 7,083,528 7,046,669 6,964,454 6,863,393

Allowance for loan and lease losses (164,898) (161,846) (161,430) (157,470)

Net loans and leases 6,918,630 6,884,823 6,803,024 6,705,923

Equipment owned under operating leases, net 6,603 6,964 7,649 9,864

Premises and equipment, net 57,973 58,318 57,852 54,778

Goodwill and intangible assets 83,895 83,895 83,895 83,895

Accrued income and other assets 372,647 351,921 365,646 357,798

Total assets $ 9,113,429 $ 9,055,270 $ 9,056,691 $ 8,963,114

LIABILITIES

Deposits:

Noninterest-bearing demand $ 1,655,736 $ 1,600,495 $ 1,633,786 $ 1,651,479

Interest-bearing deposits:

Interest-bearing demand 2,487,201 2,592,202 2,512,205 2,451,169

Savings 1,466,564 1,446,278 1,396,931 1,392,391

Time 1,618,095 1,586,600 1,866,897 1,922,726

Total interest-bearing deposits 5,571,860 5,625,080 5,776,033 5,766,286

Total deposits 7,227,596 7,225,575 7,409,819 7,417,765

Short-term borrowings:

Federal funds purchased and securities sold under agreements to repurchase 153,391 112,470 72,190 60,025

Other short-term borrowings 135,789 126,151 1,384 1,152

Total short-term borrowings 289,180 238,621 73,574 61,177

Long-term debt and mandatorily redeemable securities 35,508 43,330 42,234 41,210

Subordinated notes 58,764 58,764 58,764 58,764

Accrued expenses and other liabilities 181,543 170,890 180,869 163,656

Total liabilities 7,792,591 7,737,180 7,765,260 7,742,572

SHAREHOLDERS’ EQUITY

Preferred stock; no par value

Authorized 10,000,000 shares; none issued or outstanding

— — — —

Common stock; no par value

Authorized 40,000,000 shares; issued 28,205,674 shares at March 31, 2026, December 31, 2025, September 30, 2025, and March 31, 2025

436,538 436,538 436,538 436,538

Retained earnings 1,047,027 1,015,160 983,615 921,717

Cost of common stock in treasury (4,136,793, 3,836,656, 3,771,570, and 3,643,063 shares at March 31, 2026, December 31, 2025, September 30, 2025, and

March 31, 2025, respectively)

(164,709) (141,950) (137,818) (128,912)

Accumulated other comprehensive loss (40,900) (34,777) (45,863) (67,884)

Total shareholders’ equity 1,277,956 1,274,971 1,236,472 1,161,459

Noncontrolling interests 42,882 43,119 54,959 59,083

Total equity 1,320,838 1,318,090 1,291,431 1,220,542

Total liabilities and equity $ 9,113,429 $ 9,055,270 $ 9,056,691 $ 8,963,114

- 6 -

1st SOURCE CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited - Dollars in thousands, except per share amounts)

Three Months Ended

March 31, December 31, March 31,

2026 2025 2025

Interest income:

Loans and leases $ 113,423 $ 119,981 $ 113,560

Investment securities, taxable 11,704 10,802 8,153

Investment securities, tax-exempt 307 316 277

Other 699 1,887 1,314

Total interest income 126,133 132,986 123,304

Interest expense:

Deposits 32,578 37,308 39,846

Short-term borrowings 1,720 234 232

Subordinated notes 995 1,002 1,014

Long-term debt and mandatorily redeemable securities 702 1,147 1,274

Total interest expense 35,995 39,691 42,366

Net interest income 90,138 93,295 80,938

Provision for credit losses:

Provision for credit losses — loans and leases 7,010 695 2,112

Provision for credit losses — unfunded loan commitments 262 16 1,153

Total provision for credit losses 7,272 711 3,265

Net interest income after provision for credit losses 82,866 92,584 77,673

Noninterest income:

Trust and wealth advisory 7,018 7,110 6,666

Service charges on deposit accounts 3,354 3,487 3,071

Debit card 4,380 4,528 4,149

Mortgage banking 1,011 1,103 853

Insurance commissions 2,511 1,730 2,440

Equipment rental 589 650 899

Losses on investment securities available-for-sale — (5,805) —

Other 4,138 4,734 5,025

Total noninterest income 23,001 17,537 23,103

Noninterest expense:

Salaries and employee benefits 32,821 33,432 32,115

Net occupancy 3,548 3,380 3,224

Furniture and equipment 1,462 1,857 1,347

Data processing 7,573 7,565 7,291

Depreciation – leased equipment 454 521 718

Professional fees 1,575 2,183 1,668

FDIC and other insurance 1,449 1,461 1,440

Business development and marketing 1,903 2,200 1,925

Other 3,732 3,958 3,348

Total noninterest expense 54,517 56,557 53,076

Income before income taxes 51,350 53,564 47,700

Income tax expense 11,389 12,433 10,177

Net income 39,961 41,131 37,523

Net (income) loss attributable to noncontrolling interests (5) 11 (3)

Net income available to common shareholders $ 39,956 $ 41,142 $ 37,520

Per common share:

Basic net income per common share $ 1.63 $ 1.67 $ 1.52

Diluted net income per common share $ 1.63 $ 1.67 $ 1.52

Basic weighted average common shares outstanding 24,276,666 24,391,070 24,546,819

Diluted weighted average common shares outstanding 24,276,666 24,391,070 24,546,819

- 7 -

1st SOURCE CORPORATION

DISTRIBUTION OF ASSETS, LIABILITIES AND SHAREHOLDERS’ EQUITY

INTEREST RATES AND INTEREST DIFFERENTIAL

(Unaudited - Dollars in thousands)

Three Months Ended

March 31, 2026 December 31, 2025 March 31, 2025

Average

Balance Interest Income/Expense Yield/

Rate Average

Balance Interest Income/Expense Yield/

Rate Average

Balance Interest Income/Expense Yield/

Rate

ASSETS

Investment securities available-for-sale:

Taxable $ 1,493,065 $ 11,704 3.18 % $ 1,483,960 $ 10,802 2.89 % $ 1,488,005 $ 8,153 2.22 %

Tax exempt(1)

34,005 387 4.62 % 35,215 398 4.48 % 31,172 349 4.54 %

Mortgages held for sale 4,930 75 6.17 % 5,228 78 5.92 % 2,409 39 6.57 %

Loans and leases, net of unearned discount(1)

7,022,759 113,423 6.55 % 6,953,090 119,979 6.85 % 6,798,952 113,596 6.78 %

Other investments 63,852 699 4.44 % 174,112 1,887 4.30 % 114,252 1,314 4.66 %

Total earning assets(1)

8,618,611 126,288 5.94 % 8,651,605 133,144 6.11 % 8,434,790 123,451 5.94 %

Cash and due from banks 57,339 75,004 64,009

Allowance for loan and lease losses (163,666) (162,941) (157,318)

Other assets 508,021 506,803 514,797

Total assets $ 9,020,305 $ 9,070,471 $ 8,856,278

LIABILITIES AND SHAREHOLDERS’ EQUITY

Interest-bearing deposits $ 5,605,444 $ 32,578 2.36 % $ 5,783,353 $ 37,308 2.56 % $ 5,745,134 $ 39,846 2.81 %

Short-term borrowings:

Securities sold under agreements to repurchase 53,514 91 0.69 % 59,330 121 0.81 % 58,232 104 0.72 %

Other short-term borrowings 173,524 1,629 3.81 % 13,028 113 3.44 % 18,450 128 2.81 %

Subordinated notes 58,764 995 6.87 % 58,764 1,002 6.76 % 58,764 1,014 7.00 %

Long-term debt and mandatorily redeemable securities

39,521 702 7.20 % 42,427 1,147 10.73 % 39,675 1,274 13.02 %

Total interest-bearing liabilities

5,930,767 35,995 2.46 % 5,956,902 39,691 2.64 % 5,920,255 42,366 2.90 %

Noninterest-bearing deposits

1,586,125 1,637,653 1,588,408

Other liabilities 167,427 168,962 139,379

Shareholders’ equity 1,292,902 1,261,725 1,141,922

Noncontrolling interests 43,084 45,229 66,314

Total liabilities and equity

$ 9,020,305 $ 9,070,471 $ 8,856,278

Less: Fully tax-equivalent adjustments (155) (158) (147)

Net interest income/margin (GAAP-derived)(1)

$ 90,138 4.24 % $ 93,295 4.28 % $ 80,938 3.89 %

Fully tax-equivalent adjustments

155 158 147

Net interest income/margin - FTE(1)

$ 90,293 4.25 % $ 93,453 4.29 % $ 81,085 3.90 %

(1) See “Reconciliation of Non-GAAP Financial Measures” for more information on this performance measure/ratio.

- 8 -

1st SOURCE CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited - Dollars in thousands, except per share data)

Three Months Ended

March 31, December 31, March 31,

2026 2025 2025

Calculation of Net Interest Margin

(A) Interest income (GAAP) $ 126,133 $ 132,986 $ 123,304

Fully tax-equivalent adjustments:

(B) – Loans and leases 75 76 75

(D) Interest income – FTE (A+B+C) 126,288 133,144 123,451

(E) Interest expense (GAAP) 35,995 39,691 42,366

(F) Net interest income (GAAP) (A-E) 90,138 93,295 80,938

(G) Net interest income - FTE (D-E) 90,293 93,453 81,085

(H) Annualization factor 4.056 3.967 4.056

(I) Total earning assets $ 8,618,611 $ 8,651,605 $ 8,434,790

Net interest margin (GAAP-derived) (F*H)/I 4.24 % 4.28 % 3.89 %

Net interest margin – FTE (G*H)/I 4.25 % 4.29 % 3.90 %

Calculation of Efficiency Ratio

(F) Net interest income (GAAP) $ 90,138 $ 93,295 $ 80,938

(G) Net interest income – FTE 90,293 93,453 81,085

(J) Plus: noninterest income (GAAP) 23,001 17,537 23,103

(K) Less: gains/losses on investment securities and partnership investments (586) 4,919 (1,427)

(L) Less: depreciation – leased equipment (454) (521) (718)

(M) Total net revenue (GAAP) (F+J) 113,139 110,832 104,041

(N) Total net revenue – adjusted (G+J–K–L) 112,254 115,388 102,043

(O) Noninterest expense (GAAP) 54,517 56,557 53,076

(L) Less:depreciation – leased equipment (454) (521) (718)

(P) Noninterest expense – adjusted (O–L) 54,063 56,036 52,358

Efficiency ratio (GAAP-derived) (O/M) 48.19 % 51.03 % 51.01 %

Efficiency ratio – adjusted (P/N) 48.16 % 48.56 % 51.31 %

End of Period

March 31, December 31, March 31,

2026 2025 2025

Calculation of Tangible Common Equity-to-Tangible Assets Ratio

(Q) Total common shareholders’ equity (GAAP) $ 1,277,956 $ 1,274,971 $ 1,161,459

(R) Less: goodwill and intangible assets (83,895) (83,895) (83,895)

(S) Total tangible common shareholders’ equity (Q–R) $ 1,194,061 $ 1,191,076 $ 1,077,564

(T) Total assets (GAAP) 9,113,429 9,055,270 8,963,114

(R) Less: goodwill and intangible assets (83,895) (83,895) (83,895)

(U) Total tangible assets (T–R) $ 9,029,534 $ 8,971,375 $ 8,879,219

Common equity-to-assets ratio (GAAP-derived) (Q/T) 14.02 % 14.08 % 12.96 %

Tangible common equity-to-tangible assets ratio (S/U) 13.22 % 13.28 % 12.14 %

Calculation of Tangible Book Value per Common Share

(Q) Total common shareholders’ equity (GAAP) $ 1,277,956 $ 1,274,971 $ 1,161,459

(V) Actual common shares outstanding 24,068,881 24,369,018 24,562,611

Book value per common share (GAAP-derived) (Q/V)*1000 $ 53.10 $ 52.32 $ 47.29

Tangible common book value per share (S/V)*1000 $ 49.61 $ 48.88 $ 43.87

The NASDAQ Stock Market National Market Symbol: “SRCE” (CUSIP #336901 10 3)

Please contact us at shareholder@1stsource.com

- 9 -

GRAPHIC — CORP LOGO

GRAPHIC

Filename: pressreleasecorplogoa.jpg · Sequence: 6

Binary file (17856 bytes)

Download pressreleasecorplogoa.jpg

XML — IDEA: XBRL DOCUMENT

XML

Filename: R1.htm · Sequence: 8

v3.26.1

Document and Entity Information

Apr. 23, 2026

Document and Entity Information

Document Type

8-K

Document Period End Date

Apr. 23, 2026

Entity Registrant Name

1st Source Corp

Entity Incorporation, State or Country Code

Entity File Number

0-6233

Entity Tax Identification Number

35-1068133

Entity Address, Address Line One

100 North Michigan Street

Entity Address, City or Town

South Bend

Entity Address, State or Province

Entity Address, Postal Zip Code

46601

City Area Code

574

Local Phone Number

235-2000

Written Communications

false

Soliciting Material

false

Pre-commencement Tender Offer

false

Pre-commencement Issuer Tender Offer

false

Title of 12(b) Security

Common Stock - without par value

Trading Symbol

SRCE

Security Exchange Name

NASDAQ

Entity Emerging Growth Company

false

Amendment Flag

false

Entity Central Index Key

0000034782

- Definition

Boolean flag that is true when the XBRL content amends previously-filed or accepted submission.

+ References

No definition available.

+ Details

Name:

dei_AmendmentFlag

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Area code of city

+ References

No definition available.

+ Details

Name:

dei_CityAreaCode

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

For the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.

+ References

No definition available.

+ Details

Name:

dei_DocumentPeriodEndDate

Namespace Prefix:

dei_

Data Type:

xbrli:dateItemType

Balance Type:

Period Type:

duration

- Definition

The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.

+ References

No definition available.

+ Details

Name:

dei_DocumentType

Namespace Prefix:

dei_

Data Type:

dei:submissionTypeItemType

Balance Type:

Period Type:

duration

- Definition

Address Line 1 such as Attn, Building Name, Street Name

+ References

No definition available.

+ Details

Name:

dei_EntityAddressAddressLine1

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Name of the City or Town

+ References

No definition available.

+ Details

Name:

dei_EntityAddressCityOrTown

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Code for the postal or zip code

+ References

No definition available.

+ Details

Name:

dei_EntityAddressPostalZipCode

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Name of the state or province.

+ References

No definition available.

+ Details

Name:

dei_EntityAddressStateOrProvince

Namespace Prefix:

dei_

Data Type:

dei:stateOrProvinceItemType

Balance Type:

Period Type:

duration

- Definition

A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityCentralIndexKey

Namespace Prefix:

dei_

Data Type:

dei:centralIndexKeyItemType

Balance Type:

Period Type:

duration

- Definition

Indicate if registrant meets the emerging growth company criteria.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityEmergingGrowthCompany

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.

+ References

No definition available.

+ Details

Name:

dei_EntityFileNumber

Namespace Prefix:

dei_

Data Type:

dei:fileNumberItemType

Balance Type:

Period Type:

duration

- Definition

Two-character EDGAR code representing the state or country of incorporation.

+ References

No definition available.

+ Details

Name:

dei_EntityIncorporationStateCountryCode

Namespace Prefix:

dei_

Data Type:

dei:edgarStateCountryItemType

Balance Type:

Period Type:

duration

- Definition

The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityRegistrantName

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b-2

+ Details

Name:

dei_EntityTaxIdentificationNumber

Namespace Prefix:

dei_

Data Type:

dei:employerIdItemType

Balance Type:

Period Type:

duration

- Definition

Local phone number for entity.

+ References

No definition available.

+ Details

Name:

dei_LocalPhoneNumber

Namespace Prefix:

dei_

Data Type:

xbrli:normalizedStringItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 13e

-Subsection 4c

+ Details

Name:

dei_PreCommencementIssuerTenderOffer

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 14d

-Subsection 2b

+ Details

Name:

dei_PreCommencementTenderOffer

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Title of a 12(b) registered security.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection b

+ Details

Name:

dei_Security12bTitle

Namespace Prefix:

dei_

Data Type:

dei:securityTitleItemType

Balance Type:

Period Type:

duration

- Definition

Name of the Exchange on which a security is registered.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 12

-Subsection d1-1

+ Details

Name:

dei_SecurityExchangeName

Namespace Prefix:

dei_

Data Type:

dei:edgarExchangeCodeItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Exchange Act

-Number 240

-Section 14a

-Subsection 12

+ Details

Name:

dei_SolicitingMaterial

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

Trading symbol of an instrument as listed on an exchange.

+ References

No definition available.

+ Details

Name:

dei_TradingSymbol

Namespace Prefix:

dei_

Data Type:

dei:tradingSymbolItemType

Balance Type:

Period Type:

duration

- Definition

Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Securities Act

-Number 230

-Section 425

+ Details

Name:

dei_WrittenCommunications

Namespace Prefix:

dei_

Data Type:

xbrli:booleanItemType

Balance Type:

Period Type:

duration

- Definition

-- None. No documentation exists for this element. --

+ References

No definition available.

+ Details

Name:

source_DocumentAndEntityInformationAbstract

Namespace Prefix:

source_

Data Type:

xbrli:stringItemType

Balance Type:

Period Type:

duration