1st Source Corporation reported record second quarter 2026 net income of $47.5 million, or $1.95 per diluted share, a 29.1% year-over-year increase. Revenue, comprised of net interest income and noninterest income, totaled $118.16 million for the quarter.

Key Highlights

  • Diluted EPS of $1.95 grew 29.1% year-over-year, driven by higher net interest income and a substantial reduction in credit loss provisions.
  • The provision for credit losses was significantly lower at $1.54 million, a sharp decline from $7.27 million in the prior quarter and $7.69 million a year ago.
  • Tax-equivalent net interest margin remained resilient at 4.24%, down just one basis point from the prior quarter but up 23 basis points from the second quarter of 2025.
  • The company increased its quarterly cash dividend by 18.4% year-over-year to $0.45 per common share.