1St Source (SRCE) AI Stock Analysis

• Market Cap: $1.62B
• Dividend Yield: 2.3%
• Average Volume (3M): 75.50K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.72
• Revenue Growth: 5.09%
• EPS Growth: 15.78%
• Country: US
• Employees: 1,205
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.71
• Shares Outstanding: 24,434,704
• 10 Day Avg. Volume: 95,220
• 30 Day Avg. Volume: 75,505
• PEG Ratio: 1.64
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 2.51
• P/FCF Ratio: 7.88
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.81
• Enterprise Value/Gross Profit: 4.08
• Enterprise Value/Ebitda: 8.21
• 1Y Price Target: $72.67
• Price Target Upside: 9.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 6.48
• Revenue Forecast (FY): $436.09M

• Rating: 82 Outperform
• Price Target: $74.00 ▲(11.78% Upside)

1st Source Corporation demonstrates strong financial performance and technical indicators, supported by strategic corporate initiatives in renewable energy and payment systems. The stock is attractively valued, offering a reasonable P/E ratio and a solid dividend yield. These factors collectively contribute to a robust overall stock score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective business strategies and expanding market presence, supporting long-term financial stability.

Renewable Energy Financing

Expansion in renewable energy financing positions the company as a leader in sustainable finance, aligning with global environmental trends.

Low Leverage

Low leverage enhances financial flexibility and reduces risk, allowing the company to navigate economic uncertainties effectively.

Negative Factors

Leadership Change

Leadership changes can disrupt strategic continuity and risk management, potentially impacting operational stability during transitions.

Declining Free Cash Flow

Declining free cash flow may limit investment capacity and affect the company's ability to fund growth initiatives sustainably.

Decreasing Gross Profit Margin

A decreasing gross profit margin suggests rising costs or pricing pressures, which could erode profitability if not managed effectively.

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 generates revenue primarily through interest income from loans and fees associated with its banking services. The company's main revenue streams include interest earned on commercial and consumer loans, mortgage financing, and leasing services. Additionally, 1st Source earns non-interest income through various fees for services such as account maintenance, wire transfers, and investment management. The bank also participates in wealth management and trust services, providing advisory services that contribute to its earnings. Strategic partnerships with local businesses and organizations enhance its customer base, while a strong focus on community engagement helps to drive customer loyalty and retention.

1St Source Financial Statement Overview

Summary

1st Source exhibits strong financial health with consistent revenue growth and profitability. The balance sheet is well-managed with low leverage, and cash flow generation is solid despite recent declines in free cash flow growth. Continued focus on cost management and cash flow optimization will be key to sustaining financial performance.

Income Statement

1st Source has demonstrated consistent revenue growth with a TTM revenue growth rate of 21.9%. The company maintains strong profitability with a net profit margin of 26.2% and an EBIT margin of 33.5% in the TTM. However, the gross profit margin has decreased over time, indicating potential cost pressures.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.14 in the TTM, indicating prudent financial leverage. Return on equity is solid at 12.7%, reflecting efficient use of equity. However, the equity ratio has decreased slightly, suggesting a need to monitor asset financing.

Cash Flow

1st Source's cash flow performance is mixed, with a slight decline in free cash flow growth. The operating cash flow to net income ratio is robust at 145.4%, indicating strong cash generation relative to net income. However, the free cash flow to net income ratio has slightly decreased, suggesting potential cash flow management challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	591.11M	570.32M	507.53M	385.08M	354.86M	366.92M
Gross Profit	407.12M	374.66M	363.40M	341.49M	341.03M	293.71M
EBITDA	202.32M	183.42M	177.14M	175.87M	178.88M	137.42M
Net Income	148.58M	132.62M	124.93M	120.51M	118.53M	81.44M
Balance Sheet
Total Assets	9.06B	8.93B	8.73B	8.34B	8.10B	7.32B
Cash, Cash Equivalents and Short-Term Investments	1.32B	1.02B	1.70B	1.86B	1.92B	1.27B
Total Debt	174.57M	325.05M	397.39M	302.94M	309.44M	270.91M
Total Liabilities	7.77B	7.75B	7.66B	7.42B	7.13B	6.39B
Stockholders Equity	1.24B	1.11B	989.57M	864.07M	916.25M	886.85M
Cash Flow
Free Cash Flow	194.70M	181.49M	181.96M	173.15M	163.88M	151.64M
Operating Cash Flow	201.24M	194.07M	187.94M	175.53M	166.76M	154.49M
Investing Cash Flow	-295.68M	-276.61M	-358.29M	-784.87M	-598.56M	-582.66M
Financing Cash Flow	139.34M	77.91M	177.22M	206.95M	713.94M	587.85M

1St Source Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 66.2 is above the 20-day moving average (MA) of 63.54, above the 50-day MA of 61.27, and above the 200-day MA of 60.60, indicating a bullish trend. The MACD of 1.37 indicates Negative momentum. The RSI at 68.88 is Neutral, neither overbought nor oversold. The STOCH value of 73.15 is Neutral, 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
SRCE	82 Outperform	$1.62B	10.85	12.65%	2.30%	5.09%	15.78%
STBA	80 Outperform	$1.61B	12.18	9.35%	3.26%	-1.48%	-1.58%
STEL	76 Outperform	$1.65B	16.12	6.38%	1.77%	-4.40%	-8.80%
GABC	73 Outperform	$1.55B	14.43	10.75%	2.81%	30.45%	3.13%
MBIN	72 Outperform	$1.69B	8.46	11.84%	1.10%	-2.45%	-28.20%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CLBK	60 Neutral	$1.76B	115.37	1.34%	―	-3.60%	-8.63%

1St Source Corporate Events

1st Source Expands Renewable Energy Financing Division

1st Source Corporation has launched instant payment systems, Real Time Payments (RTP) and FedNow, in 2023, facilitating over $418 million in transactions and more than 345,000 total transactions. The company continues to expand its renewable energy financing division, with over $603 million in loans and leases outstanding and $184 million invested in tax equity partnerships, contributing to significant environmental impact by reducing carbon emissions.

1st Source Announces EVP and CRO Retirement

On October 22, 2025, 1st Source Corporation and 1st Source Bank announced the upcoming retirement of their Executive Vice President and Chief Risk Officer, John B. Griffith, effective December 31, 2025. This leadership change could have implications for the company’s risk management strategies and overall operations as they transition to new leadership in this critical role.