SRCE
Financial Services1st Source Corporation · Banks - Regional · $2B
What is 1st Source Corporation?
1st Source Corporation is a South Bend-based bank holding company serving individuals and businesses across the Midwest. Through 1st Source Bank, it delivers a broad range of financial services spanning everyday banking to specialized equipment financing.
1st Source generates revenue through commercial and consumer lending, deposit-taking, trust and wealth advisory services, and insurance products. A distinctive niche is its specialty finance arm, which provides equipment loans and leases for aircraft, construction equipment, and commercial trucks — segments that set it apart from typical community banks.
The company was founded in 1983 and is headquartered in South Bend, Indiana.
- Commercial and consumer banking (loans, deposits, mortgages)
- Specialty equipment financing (aircraft, trucks, construction)
- Trust, wealth advisory, and estate management services
- Treasury management and retirement planning
Is SRCE a Good Stock to Buy?
UQS Score rates SRCE as Good overall, reflecting a balanced profile with meaningful strengths and some areas of concern.
The Quality pillar stands out as the strongest dimension of 1st Source's profile, suggesting the bank maintains sound fundamentals relative to peers. The Risk and Valuation pillars also register positively, indicating the stock does not appear excessively priced and carries a manageable risk profile for a community bank.
The Moat and Growth pillars are rated Weak, pointing to limited competitive differentiation and below-average growth momentum — common challenges for smaller regional banks.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does SRCE pay dividends?
Yes — 1st Source Corporation pays a dividend.
1st Source pays a regular dividend, consistent with its profile as a mature community bank that prioritizes returning capital to shareholders. The dividend reflects the company's relatively stable earnings base from lending and fee-based services. Income-oriented investors often look to regional banks like SRCE for steady, recurring payouts.
When does SRCE report earnings?
1st Source Corporation reports earnings on a quarterly cadence, typical for US-listed bank holding companies.
The bank's results tend to reflect trends in net interest income, credit quality, and fee revenue from its specialty finance and wealth management segments. Loan portfolio performance and deposit costs are key variables that shape each quarter's outcome.
For the most recent quarter's results and guidance, visit 1st Source Corporation's investor relations page directly.
SRCE Price History
+66.8% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in 1st Source Corporation?
Based on 1st Source Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
SRCE Long-term Outlook
With Growth and Moat rated Weak, the near-term fundamental outlook for SRCE is measured rather than expansionary. The bank's Good Risk rating suggests credit quality is being managed carefully, which can support earnings stability even in a slower-growth environment. The Good Valuation rating means investors are not paying a premium for that stability.
Growth drivers
- Specialty equipment finance niches (aircraft, trucking) that extend beyond typical community bank reach
- Wealth advisory and trust services providing fee income less sensitive to interest rate swings
Key risks
- Interest rate sensitivity affecting net interest margins in a shifting rate environment
- Limited competitive moat in core community banking against larger regional and national banks
- Slower loan growth potential given the small-cap scale and regional footprint
SRCE vs Peers
1st Source competes with other community and regional bank holding companies that serve similar client segments.
City Holding operates primarily in West Virginia and surrounding Appalachian markets, with a similarly conservative community banking model but a different geographic footprint.
OFG Bancorp focuses on Puerto Rico and the US Virgin Islands, giving it exposure to distinct economic dynamics compared to SRCE's Midwest base.
Laurentian Bank is a Canadian institution serving Quebec and national business clients, offering a cross-border peer reference for community-scale banking models.
Frequently Asked Questions
What does 1st Source Corporation do?
1st Source Corporation is the holding company for 1st Source Bank, which provides commercial and consumer banking, trust and wealth advisory services, insurance products, and specialty equipment financing — including loans and leases for aircraft, trucks, and construction equipment — to individuals and businesses primarily in the Midwest.
Does SRCE pay dividends?
Yes, 1st Source pays a regular dividend. The company has a history of returning capital to shareholders through consistent dividend payments, which is typical for mature, profitable community bank holding companies. For current dividend details, check the company's investor relations page.
When does SRCE report earnings?
1st Source reports earnings on a quarterly basis, in line with standard practice for US-listed bank holding companies. For exact release dates and scheduled calls, refer to the investor relations section of 1st Source Corporation's official website.
Is SRCE a good stock to buy?
UQS Score rates SRCE as Good overall. The Quality and Risk pillars are rated positively, and the Valuation pillar is also Good. However, Moat and Growth are rated Weak, which may temper expectations for rapid appreciation. The full pillar breakdown is available to Pro members on UQS Score.
Is SRCE overvalued?
Based on the UQS Valuation pillar, SRCE does not appear overvalued relative to its fundamentals — the pillar is rated Good. This suggests the market is pricing the stock at a level that reflects its earnings profile without a significant premium. Full valuation metrics are available with a Pro account.
How does SRCE compare to its competitors?
Among peers like City Holding Company and OFG Bancorp, 1st Source differentiates itself through specialty equipment finance niches such as aircraft and commercial truck lending. These segments go beyond the typical community bank product set, though the Moat pillar remains Weak, indicating limited overall competitive advantage.
What is SRCE's market cap bracket?
SRCE is classified as a small-cap stock. This places it in the tier of regional and community banks that serve defined geographic markets rather than competing at a national or global scale.
Who founded 1st Source Corporation?
1st Source Corporation was established in 1983 as the holding company for 1st Source Bank, which itself has roots in South Bend, Indiana going back further. Detailed founding history is publicly available through the company's official website and historical filings.
Is SRCE a long-term quality investment?
As a long-term quality indicator, UQS Score rates SRCE as Good, with a particularly Strong Quality pillar. The Good Risk rating adds to the case for stability over time. However, the Weak Growth and Moat ratings suggest investors should weigh whether the bank's earnings trajectory meets their long-term return expectations.
What sector does SRCE belong to?
SRCE belongs to the Financial Services sector, specifically operating as a bank holding company. It competes in the community and regional banking space, with additional exposure to specialty finance and wealth management — segments that can provide more stable fee-based revenue streams.
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Pro Analysis
SRCE — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 22, 2026 | 50.7 | 87.8 | 21.0 | 25.5 | 37.0 | 85.5 | -0.1 |
| May 12, 2026 | 50.8 | 87.8 | 21.0 | 25.5 | 37.0 | 86.6 | -5.2 |
| May 3, 2026 | 56.0 | 87.6 | 21.0 | 25.5 | 73.2 | 85.0 | 0.0 |
| May 2, 2026 | 56.0 | 87.6 | 21.0 | 25.5 | 73.2 | 85.4 | +1.2 |
| Apr 26, 2026 | 54.8 | 87.6 | 21.0 | 24.0 | 73.2 | 79.3 | +0.2 |
| Apr 19, 2026 | 54.6 | 87.6 | 21.0 | 24.0 | 73.2 | 78.1 | -0.1 |
| Apr 18, 2026 | 54.7 | 87.6 | 21.0 | 24.0 | 73.2 | 78.5 | -0.3 |
| Apr 12, 2026 | 55.0 | 87.6 | 21.0 | 24.0 | 73.2 | 80.5 | -0.4 |
| Apr 10, 2026 | 55.4 | 87.6 | 21.0 | 24.0 | 73.2 | 83.1 | 0.0 |
| Apr 5, 2026 | 55.4 | 87.6 | 21.0 | 24.0 | 73.2 | 82.8 | 0.0 |
SRCE — Pillar Breakdown
Quality
— 87.8/100 (25%)1st Source Corporation demonstrates outstanding capital efficiency and profitability, placing it among the highest-quality businesses in the market.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Free cash flow relative to market value.
Growth
— 25.5/100 (20%)1st Source Corporation faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 37.0/100 (15%)1st Source Corporation has some risk factors including moderate leverage or solvency concerns.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 85.5/100 (15%)1st Source Corporation appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 21/100 (25%)1st Source Corporation operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for SRCE.
Score Composition
Financial Data
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How is the SRCE UQS Score Calculated?
The UQS (Unified Quality Score) for 1st Source Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses 1st Source Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether 1st Source Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.