0000034782-26-000011
SEC filing1st Source Corporation reported strong financial performance for fiscal year 2025, with net income of $158.3 million and net income available to common shareholders of $158.3 million. The company generated total interest income of $514.4 million, primarily from loans and leases ($471.0 million), and total noninterest income of $85.6 million, led by trust and wealth advisory, service charges on deposit accounts, and debit card income ($58.8 million). Net interest income was $348.2 million, with a provision for credit losses of $12.6 million. Total assets stood at $9.06 billion, with net loans and leases of $6.88 billion and total deposits of $7.23 billion. The company maintained solid capital levels with total shareholders' equity of $1.27 billion. Cash flow from operating activities was $223.1 million, while investing activities used $154.2 million and financing activities used $73.9 million, resulting in a net decrease in cash of $5.0 million. Basic and diluted earnings per share were both $6.00.
1st Source Corporation reported net income of $158.3 million for fiscal year 2025, with net income available to common shareholders of $158.3 million. The company generated total interest income of $514.4 million, consisting of $471.0 million from loans and leases, $36.4 million from taxable investment securities, $1.2 million from tax-exempt investment securities, and $5.8 million from other sources. Total interest expense was $166.2 million, resulting in net interest income of $348.2 million. After a provision for credit losses of $12.6 million, net interest income after provision was $335.6 million. Noninterest income totaled $85.6 million, including $58.8 million from trust and wealth advisory, service charges on deposit accounts, and debit card income, $4.1 million from mortgage banking, $7.7 million from insurance commissions, $3.0 million from equipment rental, and $20.6 million from other sources, offset by $8.7 million in losses on investment securities available-for-sale. Noninterest expense was $216.8 million, with salaries and employee benefits of $129.6 million being the largest component. Income before income taxes was $204.4 million, with income tax expense of $46.1 million. Basic and diluted earnings per common share were both $6.00.
The company's revenue streams are primarily divided between interest income and noninterest income. Interest income of $514.4 million was dominated by loans and leases at $471.0 million (91.6% of total interest income). Investment securities contributed $37.6 million combined ($36.4 million taxable and $1.2 million tax-exempt). Noninterest income of $85.6 million was led by trust and wealth advisory, service charges on deposit accounts, and debit card income at $58.8 million (68.7% of noninterest income). Other significant noninterest income sources included insurance commissions ($7.7 million), other income ($20.6 million), mortgage banking ($4.1 million), and equipment rental ($3.0 million), partially offset by losses on investment securities available-for-sale of $8.7 million.
The company's net interest margin can be inferred from the relationship between net interest income ($348.2 million) and interest-earning assets. The provision for credit losses of $12.6 million represents 2.4% of total interest income and 3.6% of net interest income. Noninterest expense of $216.8 million represents 61.8% of net interest income and 36.1% of total revenue (net interest income plus noninterest income). The largest expense category was salaries and employee benefits at $129.6 million (59.8% of noninterest expense). The effective tax rate was 22.6% ($46.1 million income tax expense on $204.4 million income before taxes).
Operating activities generated $223.1 million in cash, primarily from net income of $158.3 million adjusted for non-cash items including provision for credit losses ($12.6 million), depreciation ($7.5 million combined), stock-based compensation ($6.2 million), and changes in working capital. Investing activities used $154.2 million, with significant purchases of investment securities available-for-sale ($560.1 million) partially offset by proceeds from sales ($254.5 million) and maturities ($382.3 million). Financing activities used $73.9 million, including cash dividends paid on common stock ($38.4 million), acquisition of treasury stock ($13.9 million), and net distributions to noncontrolling interests ($4.3 million). The balance sheet shows total assets of $9.06 billion, with net loans and leases of $6.88 billion (76.0% of assets) and investment securities available-for-sale of $1.52 billion (16.8% of assets). Total liabilities were $7.74 billion, with deposits of $7.23 billion (93.4% of liabilities). Shareholders' equity was $1.27 billion, resulting in an equity-to-assets ratio of 14.0%.
The filing does not contain explicit forward-looking guidance, management projections, or specific strategic priorities for future periods. The financial statements present historical results for fiscal year 2025 without discussion of future expectations. Risk factors and management discussion typically included in 10-K filings are not provided in the extracted content. Investors should refer to the complete 10-K filing for comprehensive risk assessment and management's discussion of future prospects.