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Dec 31, 2025
1st Source Q4 2025 Earnings Report
1st Source reported higher earnings and margin expansion in Q4 2025.
Key Takeaways
1st Source delivered strong Q4 2025 results, with net income increasing year-over-year, driven by higher net interest income and improved efficiency. The bank maintained its conservative capital structure and continued expanding its loan and deposit base.
Net income rose to $41.14M, up from $31.44M in Q4 2024.
EPS increased to $1.67, compared to $1.27 in the same quarter last year.
Net interest margin expanded to 4.28%, reflecting improved asset yields.
Strong capital position with Common Equity Tier 1 ratio at 15.52%.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The company did not issue specific numeric forward guidance, but highlighted continued growth in loans, deposits, and margin strength, while acknowledging higher credit risks.
Positive Outlook
- Loan and lease growth driven by Renewable Energy and Real Estate portfolios
- Core deposit growth reflecting stable funding sources
- Strong net interest margin expansion
- Favorable tax-equivalent yields on new investment securities
- Continued conservative capital and liquidity management
Challenges Ahead
- Rising nonperforming assets, particularly from an auto rental client
- Decrease in equipment rental income due to lower leasing demand
- Higher noninterest expenses from compensation and insurance
- Investment losses from repositioning of securities
Historical Earnings Impact
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Avg. Return Before/After Earnings
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