1st Source (SRCE) Q3 2025 earnings summary

Executive summary

• Total assets reached $9.1 billion as of Q3 2025, supported by growth in loans, deposits, and higher interest-bearing deposits at other banks.

• Net income for the nine months ended September 30, 2025, was $117.14 million, up from $101.19 million in 2024, with diluted EPS of $4.74, up from $4.09.

• Achieved record quarterly net income of $42.30 million, up 13.34% from the previous quarter and 21.06% year-over-year.

• Recognized for leadership, innovation, and performance, including top rankings in SBA lending, equipment finance, and community banking awards.

• Leadership transition completed, with Andrea G. Short becoming CEO and Christopher J. Murphy III moving to Executive Chairman.

Financial highlights

• Net interest income (FTE) for 2025 YTD was $255 million, with a net interest margin (FTE) of 4.00%, up from 3.59% year-over-year.

• Noninterest income for 2025 YTD was $68.07 million, representing 21% of total revenue, but declined in Q3 due to securities losses.

• Noninterest expense rose to $160.28 million YTD, up 7.29% year-over-year, mainly due to higher salaries, data processing, and business development costs.

• Total average loans and leases grew at a 6.67% CAGR, reaching $6.93 billion in 2025 YTD.

• Book value per common share increased to $50.60 from $45.31 at year-end 2024.

Outlook and guidance

• Management remains cautious due to economic uncertainty, including trade policy, inflation, and geopolitical risks, but highlights a resilient balance sheet and strong liquidity.

• Focus remains on long-term EPS and tangible book value growth, with continued investment in digital capabilities and geographic/product diversification.