1st Source

SRCE · NASDAQ

$86.38+$1.15 (+1.35%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $85.23

SRCE analyst rating

HoldConsensus of 3 analysts over the last 12 months. 33% rate it a buy.

Strong buy0
Buy1
Hold2
Underperform0
Sell0

12-month price target · 5 analysts

Average $91.46 (+5.9% upside)

Low: $82.82
Now: $86.38
High: $105.00

Upgrades and downgrades

The latest rating actions, newest first

SRCE analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Piper Sandler	Jul 28, 2026	Maintains	Overweight	$88.00 → $100.00	72%
Keefe, Bruyette & Woods	Jul 27, 2026	Maintains	Market Perform	$79.00 → $82.00	64%
DA Davidson	Jul 27, 2026	Maintains	Neutral	$77.00 → $87.00	61%
DA Davidson	Apr 27, 2026	Maintains	Neutral	$74.00	61%
Piper Sandler	Apr 27, 2026	Maintains	Overweight	$83.00 → $88.00	72%
DA Davidson	Jan 28, 2026	Maintains	Neutral	$69.00 → $74.00	61%
Piper Sandler	Jan 26, 2026	Maintains	Overweight	$80.00 → $83.00	72%
DA Davidson	Oct 28, 2025	Maintains	Neutral	$67.00 → $69.00	61%

The case for and against

Updated Jan 12, 2026

Bull case

1st Source Corp's positive outlook is supported by a 4% increase in core fee income, reaching $24.1 million, which exceeds consensus expectations, showcasing strong performance particularly in wealth management services. Additionally, the bank experienced significant growth in its loan balances, with an increase of $235 million in the second quarter, driven primarily by advancements in renewables, commercial and agriculture loans, and specialty financing for construction equipment and aircraft. Coupled with a maintained loan-to-deposit ratio of 93% and a robust allowance for credit losses at 2.30% of non-performing loans, these factors collectively underscore the company's financial health and growth trajectory.

Bear case

1st Source Corp's financial outlook appears negative due to a decline in interest-bearing time and savings deposits of 5% and 9%, respectively, indicating potential challenges in customer retention and deposit generation. Additionally, the forecasted normalization of revenue in the third quarter, coupled with primary risks such as increased credit costs, diminished loan demand, and margin pressure, raises concerns about the company's ability to sustain earnings growth. Furthermore, lower insurance revenue, reducing to $1.7M from previous levels, highlights ongoing revenue vulnerabilities that may adversely affect the overall financial stability of the institution.

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