1st Source (SRCE) Q4 2025 earnings summary

Executive summary

• Achieved record net income of $158.28 million for 2025, up 19.34% year-over-year; Q4 net income was $41.14 million, up 30.87% from Q4 2024 but down 2.73% sequentially.

• Diluted EPS reached $6.41 for 2025, up 19.59% from 2024; Q4 diluted EPS was $1.67, up 31.50% year-over-year.

• Marked the fifth consecutive year of record net income and the 38th consecutive year of dividend growth.

• Launched a new Online & Mobile Banking for Business platform in Q4 to support small business clients.

Financial highlights

• Tax-equivalent net interest income for 2025 was $348.79 million, up 15.72% year-over-year; Q4 was $93.45 million, up 17.53% from Q4 2024.

• Noninterest income for 2025 was $85.60 million, down 0.82% year-over-year, mainly due to $8.68 million in realized losses from securities repositioning.

• Noninterest expense for 2025 was $216.84 million, up 6.50% year-over-year, driven by higher salaries, benefits, and technology costs.

• Net charge-offs for 2025 were $4.21 million (0.06% of average loans and leases), down from $5.68 million (0.09%) in 2024.

Outlook and guidance

• Management remains focused on maintaining strong liquidity and a conservative capital structure.

• Forward-looking statements caution about risks from economic, regulatory, and industry changes.