1St Source (SRCE) AI Stock Analysis

• Market Cap: $1.58B
• Dividend Yield: 2.29%
• Average Volume (3M): 79.64K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.77
• Revenue Growth: 6.43%
• EPS Growth: 11.69%
• Country: US
• Employees: 1,205
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 1.51
• Shares Outstanding: 24,537,756
• 10 Day Avg. Volume: 78,607
• 30 Day Avg. Volume: 79,645
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 2.92
• Enterprise Value/Gross Profit: 4.35
• Enterprise Value/Ebitda: 8.83
• 1Y Price Target: $70.00
• Price Target Upside: 8.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: $69.00 ▲(6.79% Upside)

1st Source Corporation is well-positioned with strong financial performance and attractive valuation. The company's strategic initiatives in renewable energy and payment systems are significant positives. However, technical indicators suggest caution due to potential overbought conditions and weak momentum.

1St Source Business Overview & Revenue Model

Company Description

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients. Its consumer banking services include checking and savings accounts; certificates of deposit; individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. The company also offers commercial, small business, agricultural, and real estate loans for general corporate purposes, including financing for industrial and commercial properties, equipment, inventories, accounts receivables, and renewable energy and acquisition financing; and commercial leasing, treasury management, and retirement planning services. In addition, it provides trust, investment, agency, and custodial services comprising administration of estates and personal trusts, as well as management of investment accounts for individuals, employee benefit plans, and charitable foundations. Further, the company offers equipment loan and lease products for construction equipment, new and pre-owned aircraft, auto and light trucks, and medium and heavy duty trucks; and finances construction equipment, aircrafts, medium and heavy duty trucks, step vans, vocational work trucks, motor coaches, shuttle buses, funeral cars, automobiles, and other equipment. Additionally, it provides corporate and personal property, casualty, and individual and group health and life insurance products and services. As of December 31, 2021, the company operated through 79 banking centers in 18 counties in Indiana and Michigan, as well as Sarasota County in Florida. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.

How the Company Makes Money

1st Source Corporation generates revenue primarily through interest income from loans, fees from banking services, and investment income. The bank earns interest from personal and commercial loans, which constitutes a significant portion of its revenue. Additionally, the bank charges fees for various services, including account maintenance, transaction services, and wealth management. The company also benefits from its equipment financing division, which provides loans for the purchase of machinery and equipment, generating further interest income. Significant partnerships with local businesses and industries enhance its market reach and contribute to its earnings through increased loan origination and service utilization.

1St Source Financial Statement Overview

Summary

1st Source exhibits solid financial health with consistent revenue and profit growth, strong cash flow, and a stable balance sheet. While profitability remains high, attention should be given to recent fluctuations in revenue growth and free cash flow.

Income Statement

1st Source has demonstrated a strong revenue growth trajectory with a notable increase in total revenue from 2020 to TTM 2025. The gross profit margin and net profit margin indicate healthy profitability, though a slight decline was observed recently. EBIT and EBITDA margins remain robust, underscoring effective cost management.

Balance Sheet

The balance sheet reflects stability with a relatively low debt-to-equity ratio, indicating prudent financial leverage. Return on equity shows strong performance, although there is a minor decrease in equity ratio, suggesting a slight increase in liabilities relative to assets.

Cash Flow

Operating cash flow remains strong, with positive free cash flow indicating good liquidity management. The free cash flow to net income ratio is favorable, although there was a recent decrease in free cash flow growth, which might signal caution.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	583.99M	570.32M	507.53M	385.08M	354.86M	366.92M
Gross Profit	391.30M	374.66M	363.40M	341.49M	341.03M	293.71M
EBITDA	192.97M	183.42M	177.14M	175.87M	178.88M	137.42M
Net Income	141.22M	132.62M	124.93M	120.51M	118.53M	81.44M
Balance Sheet
Total Assets	9.09B	8.93B	8.73B	8.34B	8.10B	7.32B
Cash, Cash Equivalents and Short-Term Investments	1.31B	1.02B	1.70B	1.86B	1.92B	1.27B
Total Debt	210.67M	325.05M	397.39M	302.94M	309.44M	270.91M
Total Liabilities	7.83B	7.75B	7.66B	7.42B	7.13B	6.39B
Stockholders Equity	1.20B	1.11B	989.57M	864.07M	916.25M	886.85M
Cash Flow
Free Cash Flow	93.69M	181.49M	181.96M	173.15M	163.88M	151.64M
Operating Cash Flow	101.91M	194.07M	187.94M	175.53M	166.76M	154.49M
Investing Cash Flow	-361.33M	-276.61M	-358.29M	-784.87M	-598.56M	-582.66M
Financing Cash Flow	22.65M	77.91M	177.22M	206.95M	713.94M	587.85M

1St Source Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.61
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SRCE, the sentiment is Positive. The current price of 64.61 is above the 20-day moving average (MA) of 60.91, above the 50-day MA of 61.72, and above the 200-day MA of 60.75, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 64.44 is Neutral, neither overbought nor oversold. The STOCH value of 91.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SRCE.

1St Source Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NBHC	80 Outperform	$1.50B	12.64	9.15%	2.92%	0.60%	-6.31%
CUBI	79 Outperform	$2.22B	17.37	8.17%	―	-7.45%	-45.67%
STEL	77 Outperform	$1.59B	14.58	7.12%	1.76%	-2.85%	-0.33%
SRCE	75 Outperform	$1.58B	11.11	12.49%	2.29%	6.43%	11.69%
LKFN	72 Outperform	$1.73B	18.50	13.86%	2.90%	-1.41%	-6.42%
Sector *	68 Neutral	$17.84B	12.03	10.32%	3.73%	9.70%	0.76%
CLBK	53 Neutral	$1.60B	252.91	0.57%	―	-0.90%	-67.89%

1St Source Corporate Events

1st Source Expands Renewable Energy Financing Initiatives

1st Source Corporation has launched instant payment systems, Real Time Payments (RTP) and FedNow, in 2023, significantly enhancing its transaction capabilities with over $345 million processed and 298,000 transactions completed. The company’s renewable energy financing division has made substantial investments, with over $573 million in loans and leases and $180 million in tax equity investments as of June 30, 2025, contributing to significant environmental impact by reducing carbon emissions.