1st Source Corporation (SRCE) Stock Price & How to Invest

1st Source Corporation is the bank holding company for 1st Source Bank, founded in 1863 and headquartered in South Bend, Indiana. It runs roughly 78 banking centers across Indiana and Michigan and manages about $9.0 billion in assets, offering commercial and consumer banking, trust and wealth advisory services, and insurance. What sets it apart from a typical community bank is its Specialty Finance Group, which lends nationally against new and used general aviation aircraft (since 1986), construction equipment, long-haul trucks, and fleets, giving it a diversified, higher-yielding loan book beyond its local footprint.

The investment picture is that of a well-capitalized, conservatively managed regional bank trading at a modest valuation (a price-to-earnings ratio around 11 to 12) with a dividend yield near 2 percent that management has been raising steadily. Recent results have been records: 2025 diluted earnings per share hit $6.41, up roughly 20 percent, and the first quarter of 2026 delivered record net income of about $40 million on rising net interest income. As a small-cap bank, however, SRCE carries the classic sensitivities of the sector, including interest-rate moves, deposit costs, and the credit health of its niche lending markets.

As a small regional bank, SRCE is highly sensitive to interest-rate changes, which affect both its net interest margin and deposit costs. Its specialty finance niches (aircraft, construction equipment, and trucking) are cyclical and tied to business investment, so a downturn could raise charge-offs concentrated in those segments. Geographic concentration in Indiana and Michigan exposes it to regional economic weakness. Thin trading liquidity and small-cap status can amplify price swings. Broader banking-sector stress, deposit competition, and commercial real estate credit concerns remain sector-wide overhangs.

A simple financial snapshot. These are approximations and refresh quarterly; for current figures see 1st Source Corporation's investor relations page or your broker.

• Market cap: ~$1.9B
• Net revenue (TTM, net of interest expense): ~$450M
• Net income (TTM): ~$155M
• Diluted EPS (2025): ~$6.41
• P/E ratio: ~11-12x
• Dividend yield: ~2.1%

SRCE trades at a low double-digit price-to-earnings multiple typical of a steady regional bank, with a dividend yield of roughly 2 percent that has been rising. Record 2025 earnings of $6.41 per share and a record first quarter of 2026 (about $40 million net income, $1.63 diluted EPS) reflect margin expansion and modest loan growth. Total assets are around $9.0 billion.

There are three common ways to get SRCE exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic basket, so SRCE sits alongside other stocks that express the same thesis.

Walnut takes the basket route. Describe a thesis where SRCE fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.

SRCE is a small-cap Indiana bank with a niche specialty-lending edge, steady profitability, and a growing dividend, but its fortunes track interest rates, regional credit conditions, and loan demand.

Whether SRCE is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is SRCE a buy?, and where the stock could go from here in the SRCE stock forecast.

For income investors, whether SRCE pays a dividend and how the payout looks is covered in does SRCE pay a dividend?