1st Source reported record net income of $47.54 million for the second quarter of 2026, up 27.4% year-over-year, with diluted net income per common share of $1.95. The board approved a quarterly cash dividend increase to $0.45 per share, payable August 14, 2026. The company posted tax-equivalent net interest income of $93.30 million and improved key capital ratios while average loans and deposits both rose sequentially.

Financial Highlights

  • Net income: $47.54 million for Q2 2026, up 27.40% from Q2 2025 and up 18.99% sequentially.
  • Diluted net income per common share: $1.95 for Q2 2026 (Q2 2025: $1.51).
  • Tax-equivalent net interest income (FTE): $93.30 million for Q2 2026; tax-equivalent net interest margin: 4.24%.
  • Provision for credit losses: $1.54 million in Q2 2026 (down from $7.27 million in prior quarter and $7.69 million in Q2 2025).
  • Capital and book values: common equity-to-assets ratio 14.15% and tangible common equity-to-tangible assets 13.36% at June 30, 2026; tangible book value per common share: $50.93.

Business Highlights

  • Average loans and leases increased $119.93 million sequentially to $7.14 billion, driven by growth in Commercial and Agricultural, Renewable Energy, Construction Equipment, and Commercial Real Estate portfolios.
  • Average deposits rose $236.03 million sequentially to $7.43 billion, with growth in interest-bearing demand, time and savings accounts; brokered deposits were $301.08 million.
  • Credit quality improved: net charge-offs fell to $0.52 million in Q2 2026 and nonperforming assets decreased versus the prior quarter.
  • Operational recognition and expansion: named to KBW Bank Honor Roll for the eighth consecutive year and received Forbes Best-In-State Banks and Best Employers for New Grads; celebrated groundbreaking for a new West Lafayette banking center implementing the side-by-side banking model.

Original SEC Filing:

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