1st Source Posts Record Q3, Raises Dividend to $0.40

1st Source Corporation reported record Q3 2025 results with net income of $42.30 million and diluted EPS of $1.71 (about +21% YoY), beating analyst estimates and generating revenue of roughly $110.3–110.7 million. Net interest margin expanded to 4.09% (up 8 basis points q/q), driven by higher rates, larger average loan and lease balances and lower short-term borrowing costs. Average loans and leases rose about $46.9 million q/q and $409.7 million YoY, while average deposits increased roughly $75.0 million q/q and $289.7 million YoY; nonperforming assets improved to 0.91% from 1.06% and credit metrics remained strong. The board approved a two-cent quarterly dividend increase to $0.40 (the company’s 32nd consecutive year of increases and 51st consecutive year of dividend payments) and repurchased approximately 105,381 shares. The quarter included $1.88 million of pre-tax losses from sales of available-for-sale securities and a $1.0 million charitable contribution. Analysts have nudged estimates higher and the stock has posted modest YTD gains but has underperformed the S&P 500, making management’s earnings-call commentary important for assessing sustainability.