1st Source Corporation, a bank holding company based in South Bend, Indiana, reported a significant increase in its financial performance for the fiscal year ending December 31, 2025. The company achieved a net income of $158.3 million, representing a 19.4% increase from $132.6 million in 2024. This growth was reflected in the diluted earnings per share, which rose to $6.41 from $5.36 in the previous year. The return on average total assets improved to 1.76%, up from 1.52% in 2024, while the return on average common shareholders’ equity increased to 13.16% from 12.54%.
The company's total assets reached $9.06 billion, with total loans and leases amounting to $7.05 billion and total deposits at $7.23 billion. Notably, net interest income surged by $47.4 million, or 15.7%, to $348.2 million, driven by a 5.1% increase in average loans and leases. However, noninterest expenses also rose by $13.2 million, or 6.5%, primarily due to higher salaries and employee benefits, which increased by 6.3% to $129.6 million.
Strategically, 1st Source Corporation has focused on expanding its loan portfolio, particularly in the renewable energy sector, which saw a 34% increase year-over-year. The company also reported a 4.5% increase in commercial real estate loans, reflecting strong demand in its primary markets. The total number of employees at the end of 2025 was approximately 1,190, indicating a commitment to maintaining a skilled workforce to support its growth initiatives.
In terms of operational metrics, the company reported a total of $1.27 billion in commercial real estate loans and $652.8 million in renewable energy loans. The allowance for loan and lease losses increased to $161.8 million, representing 2.30% of total loans and leases, up from 2.27% in 2024. The company also noted an increase in nonperforming assets, which rose to $77.4 million from $31.3 million in the previous year, primarily due to challenges in the auto rental segment.
Looking ahead, 1st Source Corporation expressed cautious optimism regarding its future performance, citing ongoing economic uncertainties, including elevated inflation and interest rates, as potential challenges. The company plans to continue focusing on its core banking operations while exploring opportunities for growth in renewable energy financing and other strategic areas. The management remains committed to maintaining a strong capital position, with the bank categorized as "well capitalized" under regulatory standards.
About 1ST SOURCE CORP
1st Source Corporation is a bank holding company based in South Bend, Indiana, offering a wide range of financial services through its subsidiary, 1st Source Bank. Key offerings include commercial and consumer banking, trust and wealth advisory services, and specialized financing for construction equipment and aircraft. With a focus on community engagement and renewable energy financing, the company targets diverse clients across Indiana, Michigan, and Florida, emphasizing personalized service and local expertise.
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