1st Source Corporation reported a solid financial performance for the third quarter and the first nine months of 2025, with net income available to common shareholders reaching $42.3 million for the quarter and $117.1 million year-to-date, compared to $34.9 million and $101.2 million for the same periods in 2024. This translates to diluted earnings per share of $1.71 for the third quarter and $4.74 for the nine months, up from $1.41 and $4.09, respectively. The company’s return on average common shareholders’ equity improved to 13.24% for the nine months ended September 30, 2025, compared to 13.02% in the prior year.
Total assets increased to $9.06 billion as of September 30, 2025, reflecting a 1.4% rise from $8.93 billion at the end of 2024. The growth in total loans and leases was a key driver, which rose by 1.6% to $6.96 billion, supported by increases in the renewable energy, residential real estate, and commercial real estate portfolios. However, this was partially offset by declines in the aircraft and auto and light truck segments. Total deposits also saw a 2.5% increase to $7.41 billion, primarily due to higher savings and time deposits, despite a decrease in demand deposits.
The company made strategic adjustments in its investment portfolio, resulting in a decrease in investment securities available-for-sale to $1.50 billion, down 2.7% from the previous year. This was attributed to expected redemptions. Additionally, 1st Source Corporation experienced a significant increase in federal funds sold and interest-bearing deposits with other banks, which rose by 189.5% to $138.94 million, reflecting a shift in liquidity management strategies.
Operationally, 1st Source Corporation reported a modest increase in noninterest income, totaling $21.9 million for the third quarter, a slight decline from $22.4 million in the same quarter of 2024. The company noted growth in trust and wealth advisory fees and service charges on deposit accounts, while mortgage banking income decreased due to lower margins on loans. Noninterest expenses increased by 7.8% to $54.8 million for the quarter, driven by higher salaries and employee benefits, as well as increased business development and marketing expenses.
Looking ahead, 1st Source Corporation remains cautious about the economic environment, citing concerns over geopolitical instability, inflation, and trade policy uncertainties. The company anticipates that these factors may impact its loan portfolios and overall financial performance. Despite these challenges, management believes that the current capital position and liquidity levels are strong enough to navigate potential economic fluctuations.
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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