1st Source Corporation Reports 6.5% Net Income Growth, Raises Dividend 13%
1st Source Corporation posted record first quarter net income of $39.96 million, up 6.49% year-over-year, and diluted EPS rose 7.24% to $1.63. The board increased the quarterly cash dividend by 13.16% to $0.43 per share and repurchased 338,356 shares for $23.35 million.
1. First Quarter Financial Performance
1st Source Corporation delivered net income of $39.96 million for Q1 2026, a 6.49% increase over Q1 2025, while diluted EPS rose 7.24% to $1.63. Return on average assets improved to 1.80%, and tax-equivalent net interest income grew 11.36% to $90.29 million, supported by a 35 basis point margin expansion.
2. Dividend Increase
The board approved a cash dividend increase of three cents per share, raising the quarterly payout to $0.43, a 13.16% year-over-year boost. The dividend is payable May 15, 2026, to shareholders of record as of May 5, 2026.
3. Share Repurchase and Balance Sheet Highlights
During the quarter, the company repurchased 338,356 shares for $23.35 million. Average loans and leases rose by $223.81 million (3.29%) year-over-year, while average deposits fell 1.94% to $7.19 billion, reflecting lower brokered deposits and seasonal outflows.
4. Awards and Recognition
1st Source earned national accolades, ranking #11 on America’s Best Banks list and #12 on America’s Best Midsize Employers. The company also received the Community Bank Gold Level Award for leading SBA small business lending in Indiana for the 13th consecutive year.