1st Source stock: Record Q3 profit supports higher dividend

1st Source Corporation reported record net income of 49.54 million US dollars for the third quarter on October 22, 2026, according to the company's earnings release. Profit increased 17.13 percent from the third quarter of 2025 and 4.20 percent from the previous quarter.

Profit growth and dividend increase

Diluted earnings per share rose to 2.03 US dollars from 1.71 US dollars a year earlier and 1.95 US dollars in the second quarter. The board approved a quarterly cash dividend of 0.45 US dollars per share, an increase of 12.50 percent from the dividend declared a year earlier. The payment is scheduled for November 13, 2026, for shareholders of record on November 3.

Tax-equivalent net interest income increased 7.69 percent year over year to 95.74 million US dollars. The tax-equivalent net interest margin reached 4.28 percent, while average loans and leases grew 3.42 percent from the year-earlier quarter.

Credit quality remains a key monitor

1st Source said the quarter included 3.82 million US dollars in pre-tax losses from the sale of approximately 68 million US dollars of available-for-sale securities and a 1 million US dollar charitable contribution. Provision for credit losses was 0.90 million US dollars, compared with 1.54 million US dollars in the previous quarter. The allowance for loan and lease losses stood at 2.28 percent of total loans and leases at September 30, down from 2.32 percent a year earlier.

Management also highlighted the launch of a Payments Hub for Treasury Services clients. The platform brings ACH, FedNow, Real-Time Payments and Instant Payments into a centralized workflow and uses routing intended to balance speed and cost.

Regional banking and specialty finance

Based in South Bend, Indiana, 1st Source Corporation is the holding company for 1st Source Bank. The company provides consumer and commercial banking through community offices in northern Indiana and southwestern Michigan, alongside nationwide specialty finance, wealth advisory and insurance operations. Its locally controlled regional model combines community banking with specialized financing and financial services.