1st Source Corp. (SRCE)
NASDAQFinancialsBanks - RegionalSnapshot 2026-09-09
$85.92-0.66%
Close 2026-09-09 · 1-day change
NASDAQFinancialsBanks - RegionalSnapshot 2026-09-09
Broken: Recent financial performance freshly dropped to the bottom half of its industry.
1st Source Corp. grows earnings steadily, with EPS reaching a record $6.41 in 2026. Profit and operating income remain stable, supporting financial strength. Cash flow from operations is strong and consistent. The bank benefits from solid management execution and a stable market environment.
Revenue is expected to decline about 6% next year, which could pressure earnings growth. Profit margins might thin if operating income weakens. Economic or regulatory challenges could hurt loan demand and cash flow.
The current price reflects expectations of about a 6% revenue decline next year and modest earnings growth. Our view aligns with stable earnings growth but sees risk if revenue falls further or profitability weakens.
Breaks if: Quarterly cash flow from operations falls below $44 million
Maintain strong cash flow from operating activities to support financial stability and capital needs.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a stable financial institution with a focus on consistent earnings growth and portfolio expansion. The current thesis state reflects a medium confidence level, with management priorities being met but recent performance showing signs of weakness.
The market appears to have priced in a low fragility level, indicating a justified valuation. There is a slight expectations gap, suggesting that investors are not overly optimistic or pessimistic about future performance compared to peers.
Fundamentals are likely to remain stable, with management focused on delivering consistent earnings growth and growing the loan portfolio. However, there is a mixed signal regarding cash flow from operations, which could affect overall performance.
The thesis hinges on sector performance, particularly the results and guidance from major financial peers like HDB, IBN, and PNC. Any changes in their earnings could significantly impact SRCE's trajectory, either positively or negatively.
The most important moves since the prior daily snapshot.
Yes, our read has weakened. Recent financial performance dropped from the top half to the bottom half of its industry. This change indicates a weakened reason to own the stock. The latest earnings beat does provide some support, but it is not enough to offset the decline in standing.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Stated as a priority in 2 of last 2 quarters. Cash from operating activities was $59.14 million in 2026-Q1 and $50.75 million in 2026-Q2, showing sustained strong cash flow. The slight decrease is within normal quarterly variation, indicating the company is maintaining cash flow from operations as intended.
“Cash from operating activities was $50.75 million for the quarter.”
“Cash from operating activities was $59.14 million for the quarter.”
Breaks if: Diluted net income per share falls below $5.36 in FY26
Breaks if: Operating income falls below $48 million in any quarter
Sustain robust operating income and net income levels to support financial stability.
In the next 1 to 3 years, SRCE's performance will depend on its ability to navigate sector dynamics and maintain its growth priorities. Not investment advice.