1st Source Corporation (SRCE) Fair Value & Analysis

Financial Services · US · Market cap $1.9B

A solid business, currently priced close to our fair value.

What matters now

• The price sits close to our fair value, market and models broadly agree here, little valuation tension.
• For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 27, 2026.

How to read this chart

60‑month range $36.75 – $90.82 · fair‑value band $64.11 – $106.86 · the $88.01 price screens above the $85.49 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 27, 2026.

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Analysis

1st Source Corporation (SRCE) currently trades at $88.01, while our model-based Fair Value estimate is $85.49, implying the stock looks roughly 2.9% fairly valued today. The Quality Score stands at 66/100 (solid quality), in the Financial Services sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, 1st Source Corporation generated revenue of $426M at a net margin of 37.7%. Revenue grew 5.1% year over year. It earns a return on equity of 12.7%. Net debt stands at $271M. Fundamentals as of Jul 27, 2026

Our scenario range runs from $64.11 (bear case) to $106.86 (bull case); at $88.01, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 58% above its 52-week low, currently above its 200-day average. For context, the median of 10 Financial Services peers we cover trades at 42% fair-value upside, at -3%, SRCE screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Multiples ($74.16) versus Dividend Discount ($18.22). Highest evidence: Residual Income (76).

Key figures & financial health

Quality Score breakdown

About the company

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients in the United States.

Full company description

1st Source Corporation operates as the bank holding company for 1st Source Bank that provides commercial and consumer banking services, trust and wealth advisory services, and insurance products to individual and business clients in the United States. The company's consumer banking services, which include checking and savings accounts; certificates of deposit; health savings and individual retirement accounts; online and mobile banking products; consumer loans, real estate mortgage loans, and home equity lines of credit; and financial planning, financial literacy, and other consultative services, as well as debit and credit cards. It also provides commercial, small business, agricultural, and real estate loans for financing of industrial and commercial properties, equipment, inventories, accounts receivables, acquisition, and general corporate purposes; and commercial leasing, treasury management, payment services, Fedwires, ACH and merchant services, and retirement planning services, as well as construction and permanent loans and tax equity investments for community solar, commercial and industrial, small utility scale, university, and municipal projects. In addition, the company offers trust, investment, agency, and custodial services for individual, estate and trust, corporate, and not-for-profit customers, as well as employee benefit plans and charitable foundations. Further, it provides equipment loan and lease products for construction equipment, aircraft, autos and light trucks, and medium and heavy-duty trucks; and financing services for construction equipment, new and pre-owned private and cargo aircraft, and various vehicle types for fleet purposes. Additionally, it offers property, casualty, individual and group health, and life insurance products and services for individuals and businesses; and owns and manages available-for-sale investment securities. 1st Source Corporation was founded in 1863 and is headquartered in South Bend, Indiana.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

1st Source Corporation reported revenue of $600M in FY2025 versus $355M in FY2021, a compound +14.0%/yr. Reported net income was $158M in FY2025, compounding +7.5%/yr from FY2021.

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Earlier news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

• Here's Why 1st Source (SRCE) is a Great Momentum Stock to Buy Yahoo Finance · Jul 29, 2026
• How Investors Are Reacting To 1st Source (SRCE) Earnings Beat, Dividend Hike and Completed Buybacks Yahoo Finance · Jul 25, 2026
• 1st Source (SRCE) Q2 Earnings and Revenues Beat Estimates Yahoo Finance · Jul 23, 2026
• 1st Source GAAP EPS of $1.95 beats by $0.24, revenue of $118M beats by $3.87M Seeking Alpha · Jul 23, 2026

Peer Group

Banks - Regional · 1083 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Banks - Regional median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

Insider activity: 66/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.