1st Source Corporation (SRCE)

Over the past six months, 1st Source Corp.'s stock price was influenced by several events. The company reported record quarterly net income for Q3 2025 and increased its quarterly cash dividend, leading to a positive market reaction. An executive succession plan was announced, with Christopher J. Murphy III transitioning to Executive Chairman and Andrea G. Short assuming the role of CEO. The company reported second-quarter 2025 net income, surpassing consensus estimates. There was increased market scrutiny on regional bank loan quality, including 1st Source's credit portfolio, but the Q3 report indicated an improvement in credit quality. The stock was highlighted in analyst reports and financial news for being a "Great Dividend Stock" and a "Best Value Stock to Buy."

The banking sector, including 1st Source Corp., experiences seasonal trends in demand for its products and services, particularly loans. Demand for loans is typically lowest in January and February, increasing in March and peaking in August or September before declining again towards December. This seasonality is influenced by interest rates, the home buying season, agricultural cycles, and business and consumer behavior.

1st Source Corp. is a financial services company operating through its subsidiary, 1st Source Bank, within the Finance sector. It offers commercial, agricultural, and real estate loans to businesses, consumer services like checking and savings accounts, trust and wealth advisory services, specialty finance group services for equipment loans and leases, and insurance services through 1st Source Insurance, Inc.

Headquartered in South Bend, Indiana, 1st Source Corp. primarily serves the northern half of Indiana and southwest Michigan, operating 78 to 81 banking centers across 18 counties in these states. It also has a presence in Sarasota County, Florida. The Specialty Finance Group has 18 locations nationwide, with nine Wealth Advisory Services locations and 10 1st Source Insurance offices.

In the past year, 1st Source Corp. has maintained a positive brand reputation, driven by strong financial performance and commitment to shareholder returns. The company has been recognized for achieving record net income and consistently increasing its cash dividend. The broader regional banking sector has faced increased scrutiny regarding loan quality, bringing attention to the company's credit portfolio, but Q3 2025 results showed an improvement in credit quality. The leadership transition appears to be managed for stability, with the market responding positively to recent results.

Institutional shareholders hold approximately 43.33% of 1st Source Corp.'s stock, while individual owners account for about 26.08%. Major institutional owners include Blackrock Inc., Dimensional Fund Advisors LP, and Vanguard Group Inc. Significant individual owners include Christopher J. Murphy III, Carmen C. Murphy, and 1st Source Bank as Trustee of the Irrevocable Living Trust Created by Ella L. Morris.