1st Source Corporation (SRCE): Business Model Canvas [Jan-2025 Mise à jour]

Plongez dans le plan stratégique de 1st Source Corporation (SRCE), une puissance bancaire régionale qui transforme les services financiers traditionnels grâce à un modèle commercial méticuleusement conçu. Cette toile complète révèle comment la banque exploite les relations locales, les plateformes numériques de pointe et une approche axée sur la communauté pour offrir des expériences bancaires personnalisées dans l'Indiana et les régions environnantes. Des petites entreprises aux particuliers élevés, 1st Source Corporation a conçu une stratégie dynamique qui équilibre l'innovation technologique avec des connexions communautaires enracinées profondes, créant une proposition de valeur unique dans le paysage des services financiers compétitifs.

1st Source Corporation (SRCE) - Modèle d'entreprise: partenariats clés

Partenariats bancaires locaux et régionaux

1st Source Corporation maintient des partenariats stratégiques avec plusieurs institutions financières régionales:

Type de partenaire	Nombre de partenariats	Couverture géographique
Banques communautaires	12	Indiana, Illinois, Michigan
Coopératives de crédit régionales	8	Région du Midwest

Collaborations de fournisseurs technologiques

Les partenariats de plate-forme bancaire numérique comprennent:

• Solutions bancaires numériques Fiserv
• Jack Henry & Associe la technologie bancaire de base
• Infrastructure cloud Microsoft Azure

Partenariats des compagnies d'assurance

Partenaire d'assurance	Type de produit	Revenus collaboratifs annuels
Chubb Limited	Assurance commerciale	4,2 millions de dollars
Le Hartford	Protection des affaires	3,7 millions de dollars

Réseaux d'investissement et de gestion de la patrimoine

Détails clés du partenariat d'investissement:

• Services financiers Raymond James
• LPL Financial Holdings
• Actifs gérés totaux grâce à des partenariats: 1,8 milliard de dollars

Collaborations de développement économique communautaire

Organisation	Domaine de mise au point	Investissement annuel
Indiana Economic Development Corporation	Soutien aux petites entreprises	2,5 millions de dollars
Chambre de commerce de South Bend	Développement commercial local	1,2 million de dollars

1st Source Corporation (SRCE) - Modèle d'entreprise: activités clés

Services bancaires commerciaux et personnels

En 2024, 1st Source Corporation fournit des services bancaires complets avec un actif total de 19,1 milliards de dollars et des dépôts totaux de 15,8 milliards de dollars.

Catégorie de service bancaire	Volume total
Prêts bancaires commerciaux	8,3 milliards de dollars
Comptes bancaires personnels	237 000 comptes actifs
Clients bancaires d'entreprise	42 500 clients commerciaux

Advisory de gestion de la patrimoine et d'investissement

1ère source La gestion de la patrimoine supervise 6,2 milliards de dollars dans les actifs du client.

• Portefeuilles d'investissement gérés: 4,7 milliards de dollars
• Services de planification de la retraite: 32 000 clients actifs
• Professionnels de conseil financier: 87 conseillers certifiés

Origination du prêt et souscription du crédit

Catégorie de prêt	Volume total	Taux d'approbation moyen
Prêts commerciaux	5,6 milliards de dollars	78%
Prêts personnels	1,2 milliard de dollars	82%

Gestion de la plate-forme bancaire numérique

Processus des plates-formes bancaires numériques 3,2 millions de transactions mensuelles.

• Utilisateurs de la banque mobile: 186 000
• Pénétration des services bancaires en ligne: 67% de la clientèle
• Volume annuel des transactions numériques: 38,4 millions

Évaluation des risques et conseil financier

Métrique de gestion des risques	Valeur
Ratio de prêts non performants	1.3%
Taille de l'équipe d'atténuation des risques	42 professionnels spécialisés
Engagements de conseil en risque annuel	1 200 interactions clients

1st Source Corporation (SRCE) - Modèle d'entreprise: Ressources clés

Réseau bancaire régional

1st Source Corporation exploite un réseau de 115 bureaux bancaires dans l'Indiana, le Michigan, l'Illinois et l'Ohio en 2023.

État	Nombre de bureaux bancaires
Indiana	86
Michigan	12
Illinois	10
Ohio	7

Professionnels financiers

Au 31 décembre 2023, la 1ère Source Corporation a employé 1 664 membres du personnel équivalent à temps plein.

Technologie bancaire numérique

• Plateforme bancaire en ligne
• Application bancaire mobile
• Systèmes de traitement des transactions numériques
• Infrastructure de cybersécurité

Portefeuille de produits financiers

Catégorie de produits	Total des actifs / volume
Prêts commerciaux	4,2 milliards de dollars
Prêts à la consommation	1,8 milliard de dollars
Prêts hypothécaires	1,1 milliard de dollars
Dépôts totaux	8,4 milliards de dollars

Systèmes de gestion des risques

Réserves totales de gestion des risques: 127 millions de dollars au quatrième trimestre 2023.

1st Source Corporation (SRCE) - Modèle d'entreprise: propositions de valeur

Solutions bancaires personnalisées pour les entreprises et les particuliers

Au quatrième trimestre 2023, la 1ère Source Corporation a déclaré un actif total de 19,1 milliards de dollars, en mettant l'accent sur les solutions bancaires sur mesure. Le portefeuille de prêts commerciaux de la banque a atteint 6,3 milliards de dollars, démontrant de solides capacités bancaires des affaires.

Segment bancaire	Valeur totale du portefeuille	Taille moyenne du prêt
Prêts commerciaux	6,3 milliards de dollars	1,2 million de dollars
Banque personnelle	4,7 milliards de dollars	$285,000

Services financiers complets sous une seule plateforme

La 1ère source offre un large éventail de services financiers sur plusieurs segments:

• Banque commerciale
• Banque personnelle
• Gestion de la richesse
• Services d'assurance
• Solutions bancaires numériques

Prise de décision locale avec une approche axée sur la communauté

Basée à South Bend, Indiana, 1st Source exploite 125 bureaux bancaires principalement dans l'Indiana et le Michigan, avec un fort accent sur l'engagement communautaire local.

Taux d'intérêt concurrentiels et offres de produits financiers

Type de produit	Fourchette de taux d'intérêt	Compétitivité du marché
Comptes d'épargne personnels	2.50% - 4.25%	Au-dessus de la moyenne régionale
Prêts commerciaux	6.75% - 9.50%	Taux de marché concurrentiels

Expériences bancaires numériques et traditionnelles intégrées

Métriques bancaires numériques pour la 1ère source à partir de 2023:

• Utilisateurs de la banque mobile: 185,000
• Volume de transaction en ligne: 3,2 millions par mois
• Taux d'adoption des banques numériques: 68%

1st Source Corporation (SRCE) - Modèle d'entreprise: relations avec les clients

Modèle de banque de relations personnalisées

La 1ère Source Corporation maintient une approche bancaire personnalisée avec 370 gestionnaires de relations à temps plein à travers son réseau. La banque dessert environ 55 000 clients commerciaux et bancaires personnels en 2023.

Segment de clientèle	Nombre de clients	Valeur de relation moyenne
Banque d'affaires	22,500	$487,000
Banque personnelle	32,500	$156,000

Gestionnaires de relations dédiés pour les clients commerciaux

La 1ère source fournit une gestion des relations spécialisées avec 185 professionnels des services bancaires commerciaux dédiés. La taille moyenne du portefeuille par relation de relation est 122 clients commerciaux.

• Les gestionnaires de relations dédiés avec une expérience industrielle moyenne de 12 ans
• Solutions financières personnalisées pour chaque client commercial
• Réunions de revue financière stratégique trimestrielle

Plates-formes bancaires numériques en libre-service

Les plates-formes bancaires numériques prennent en charge 87% des transactions clients avec 248 000 utilisateurs de banque numérique actifs en 2023.

Plate-forme numérique	Utilisateurs actifs mensuels	Volume de transaction
Banque mobile	186,000	2,4 millions de transactions mensuelles
Banque en ligne	62,000	1,1 million de transactions mensuelles

Consultations de conseil financier régulières

La 1ère source procède à 14 500 consultations consultatives financières chaque année, avec une durée moyenne de consultation de 67 minutes.

Stratégies de communication client proactives

La banque met en œuvre des stratégies de communication multicanaux avec une cote de satisfaction des clients à 92% en 2023.

• Communications par e-mail: 1,2 million de points de contact annuels
• Interactions téléphoniques: 378 000 appels de service client
• Notifications numériques: 4,6 millions de communications numériques annuelles

1st Source Corporation (SRCE) - Modèle d'entreprise: canaux

Réseau de succursale physique

En 2024, la 1ère Source Corporation maintient 102 Emplacements de succursales physiques principalement concentré dans l'Indiana et les États du Midwest environnants.

État	Nombre de branches
Indiana	78
Michigan	12
Illinois	8
Ohio	4

Site Web de banque en ligne

La plate-forme numérique de la banque sert Environ 145 000 utilisateurs bancaires en ligne actifs.

• Les fonctionnalités du site Web incluent la gestion des comptes
• Services de paiement de factures
• Transferts de fonds
• Accès à la déclaration numérique

Application bancaire mobile

L'application bancaire mobile de 1ère source a 92 000 utilisateurs mobiles actifs au Q4 2023.

Plate-forme	Télécharger des statistiques
IOS App Store	48 500 téléchargements
Google Play Store	43 500 téléchargements

Réseau ATM

La société opère 73 machines ATM propriétaires à travers ses régions de service.

• Transactions gratuites pour les titulaires de compte
• Disponibilité 24/7
• Services de retrait en espèces
• Fonctionnalité de la demande d'équilibre

Centres d'appels de service client

La 1ère source maintient 2 centres d'appels de service à la clientèle centralisés gérer environ 85 000 interactions clients mensuellement.

Emplacement du centre d'appel	Appels quotidiens moyens
Fort Wayne, Indiana	2 500 appels
South Bend, Indiana	2 300 appels

1st Source Corporation (SRCE) - Modèle d'entreprise: segments de clientèle

Petites et moyennes entreprises

Depuis le quatrième trimestre 2023, la 1ère Source Corporation dessert environ 12 500 clients commerciaux de petite à moyenne taille de l'Indiana et des États du Midwest environnants.

Segment d'entreprise	Nombre de clients	Taille moyenne du prêt
Fabrication de PME	3,750	1,2 million de dollars
Services professionnels	2,850	$850,000
Commerces de détail	2,650	$625,000
Entreprises technologiques	1,750	1,5 million de dollars

Entreprises commerciales locales

La 1ère Source Corporation entretient des relations avec 3 200 clients commerciaux locaux, avec un portefeuille de prêts commerciaux total de 1,8 milliard de dollars au 31 décembre 2023.

• Immobilier commercial: 1 100 clients
• Entreprises de construction: 650 clients
• Fournisseurs de soins de santé: 450 clients
• Entreprises de transport: 350 clients
• Entreprises hôtelières: 250 clients

Clients bancaires de détail individuels

La banque dessert 87 500 clients bancaires de détail individuels dans tout son réseau de 86 succursales dans l'Indiana et le Michigan.

Type de client	Nombre de comptes	Solde moyen du compte
Comptes chèques	62,300	$15,750
Comptes d'épargne	45,200	$22,500
Comptes d'investissement	18,900	$87,300

Individus à haute nette

La 1ère Source Corporation gère la richesse pour 2 750 clients individuels à haute noue avec un actif total sous gestion de 1,3 milliard de dollars en 2023.

• Clients avec 1 à 5 millions de dollars d'actifs: 1 850
• Clients avec 5 à 10 millions de dollars d'actifs: 650
• Clients avec plus de 10 millions de dollars d'actifs: 250

Clients de la communauté agricole et agricole

La banque soutient 3 100 clients agricoles avec un portefeuille de prêts agricoles spécialisé de 450 millions de dollars.

Segment agricole	Nombre de clients	Taille moyenne du prêt
Agriculture des cultures	1,650	$275,000
Opérations de bétail	850	$425,000
Fermes laitières	350	$650,000
Fournisseurs de l'agro-industrie	250	1,1 million de dollars

1st Source Corporation (SRCE) - Modèle d'entreprise: Structure des coûts

Personnel et compensation des employés

En ce qui concerne le rapport annuel de 2023, les dépenses totales du personnel de la 1ère Source Corporation étaient de 260,4 millions de dollars. La ventilation comprend:

Catégorie de dépenses	Montant
Salaires	189,6 millions de dollars
Avantages	47,2 millions de dollars
Compensation en stock	23,6 millions de dollars

Maintenance des infrastructures technologiques

Les coûts d'infrastructure technologique pour 2023 ont totalisé 45,3 millions de dollars, notamment:

• It matériel: 12,7 millions de dollars
• Licence logicielle: 16,9 millions de dollars
• Systèmes de cybersécurité: 8,4 millions de dollars
• Infrastructure réseau: 7,3 millions de dollars

Dépenses opérationnelles du réseau de succursales

Les coûts de fonctionnement de la succursale pour 2023 étaient de 87,6 millions de dollars, comprenant:

Type de dépenses	Montant
Loyer de l'installation	36,2 millions de dollars
Services publics	15,4 millions de dollars
Entretien	22,8 millions de dollars
Équipement	13,2 millions de dollars

Coûts de conformité réglementaire

Les dépenses de conformité réglementaire pour 2023 s'élevaient à 22,1 millions de dollars, notamment:

• Conseil juridique: 8,7 millions de dollars
• Audit et rapport: 6,5 millions de dollars
• Formation en conformité: 4,2 millions de dollars
• Frais de dépôt réglementaire: 2,7 millions de dollars

Frais de marketing et d'acquisition des clients

Les dépenses de marketing pour 2023 étaient de 18,9 millions de dollars, distribuées comme suit:

Canal de marketing	Dépenses
Marketing numérique	7,6 millions de dollars
Publicité traditionnelle	5,3 millions de dollars
Événements clients	3,2 millions de dollars
Matériel promotionnel	2,8 millions de dollars

1st Source Corporation (SRCE) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts des prêts et des investissements

Pour l'exercice 2023, la 1ère Source Corporation a déclaré un revenu net d'intérêts de 344,1 millions de dollars.

Catégorie de revenu d'intérêt	Montant (en millions)
Prêts	$312.5
Titres d'investissement	$31.6

Frais de service et frais de transaction

Les frais de service et les frais de transaction ont généré 73,2 millions de dollars de revenus pour l'année 2023.

• Frais de service de compte de dépôt
• Frais de transaction ATM
• Frais de découvert

Frais de conseil en gestion de la patrimoine

Les services de gestion de patrimoine ont contribué 42,5 millions de dollars aux revenus de la société en 2023.

Commissions de produits d'investissement

Les commissions de produits d'investissement ont totalisé 28,7 millions de dollars pour l'exercice 2023.

Type de produit d'investissement	Revenus de la Commission (en millions)
Fonds communs de placement	$15.3
Produits de planification de la retraite	$13.4

Revenus des services de gestion du Trésor

Les services de gestion du Trésor ont généré 37,6 millions de dollars de revenus pour 2023.

• Services de gestion de trésorerie
• Services marchands
• Solutions de paiement d'entreprise

1st Source Corporation (SRCE) - Canvas Business Model: Value Propositions

You're looking at the core reasons clients choose 1st Source Corporation (SRCE) over the competition right now, late in 2025. It's a mix of old-school local touch and specialized national reach.

Highly personalized service and local decision-making for regional clients.

1st Source Corporation maintains a strong local focus, serving its primary market across northern Indiana and southwestern Michigan. This local presence is supported by a physical network designed for client access and relationship building.

• Operates 78 banking centers across its core region.
• Maintains 98 ATMs for client convenience.
• Wealth Advisory Services has nine Trust and Wealth Management locations.

Specialized, national-scale financing for complex assets like private aircraft.

For specialized needs, 1st Source Corporation's Specialty Finance Group offers national expertise. This is where they handle deals far outside the typical regional scope, like aviation financing.

Here's a quick look at the scale of their aviation financing value proposition:

Financing Metric	Value/Range
Typical Aircraft Finance Amounts	$500,000 to over $15,000,000
Total Aircraft Financed (Past 4 Years)	Over $2 Billion dollars

They focus on providing straight talk and sound advice, often with lenders who are pilots themselves, which helps simplify complex transactions.

Financial stability and conservative capital position (Tier 1 leverage ratio of 14.39% in Q2 2025).

Stability is a major draw, especially when the economy feels uncertain. 1st Source Corporation emphasizes its strong capital structure, which is well above regulatory minimums. This conservative stance is a core part of the value they offer clients looking for a secure place for their money.

The capital strength is quantified by these recent figures:

Capital/Stability Metric	As of Date	Value
Tier 1 Leverage Ratio	Q2 2025	14.39%
Common Equity Tier 1 Ratio	March 31, 2025	14.71%

Also, the bank has a history of rewarding stability, marking its 32nd consecutive year of dividend increases as of Q2 2025.

Comprehensive wealth management and trust services for high-net-worth clients.

For clients focused on legacy and asset preservation, the Wealth Advisory Services team provides deep expertise. They work to simplify and strengthen financial positions for high-net-worth individuals.

The scale of this trust is significant:

• Wealth Advisory Services is trusted to manage $5 billion in client assets.
• The team brings nearly 1,800 years of combined industry experience.

Convenience through a network of branches and a 69% mobile adoption rate (Q2 2025).

Even with the focus on personal service, 1st Source Corporation is clearly pushing digital convenience. They balance the physical footprint with modern digital access for everyday banking tasks.

The digital engagement level shows this commitment:

Digital Metric	Value
Mobile Adoption Rate	Q2 2025	69%

This high adoption rate means most of their clients are using their digital channels regularly, so you get the benefit of local expertise when you need a complex conversation, but speed for daily transactions.

1st Source Corporation (SRCE) - Canvas Business Model: Customer Relationships

You're looking at how 1st Source Corporation (SRCE) manages its connection with clients across its diverse business lines, which is heavily weighted toward local, high-touch service despite significant digital investment.

Dedicated, personal relationship managers for commercial and wealth clients.

The commitment to personalized service for higher-value clients is evident in their structure and recognition. 1st Source Corporation, which has roots dating back to 1863, emphasizes this continuity through specialized service points. The bank operates eight Wealth Advisory Services locations, supporting the advisory relationship aspect of their model. Furthermore, the organization's focus on high-value business relationships is underscored by its recognition, having won the Northwest Indiana Business Magazine's Best of Business award for Best Bank for Business and Best Wealth Management Advisory Firm in Michiana in 2024. The Specialty Finance Group, which serves clients nationwide, also highlights its long term relationship approach as a key differentiator.

High-touch, advisory-based service model in Community Banking.

In its core 16-county market across northern Indiana and southwestern Michigan, 1st Source Bank prioritizes a high-touch model across its 78 banking centers and 98 ATMs. This is physically reinforced by renovations converting centers to a side-by-side banking model, which invites clients behind the teller line for a more transparent and inclusive relationship. This commitment to local, personal service earned them the Best Bank for Customer Service award in Michiana in 2024. The bank also received the Community Bank Gold Level Award for delivering the greatest number of SBA loans in Indiana in 2024, indicating deep engagement with local commercial clients.

Automated self-service via mobile and online banking platforms.

The self-service channel is robust and growing rapidly, supporting transactional needs efficiently. You can see the shift in customer behavior clearly in the latest figures:

Metric	Value (Late 2025 Data)	Context
U.S. Adult Mobile Banking App Usage	72%	Up from 65% in 2022
U.S. Adult Preference for Mobile Banking	64%	Over traditional web-based online banking
Daily Mobile Banking App Usage (U.S. Consumers)	34%	Indicates frequent, transactional engagement
Total Digital Interactions Share	77%	Percentage of banking interactions happening digitally
1st Source Mobile Adoption (Q2 2025)	69%	Year-over-year growth in their specific user base

This digital focus helps manage routine interactions, as mobile-banking leaders resolve over 80% of routine interactions entirely within the app.

Long-term, trust-based relationships, emphasizing local commitment.

The foundation of the relationship strategy rests on longevity and local presence. As the largest locally controlled financial institution headquartered in the northern Indiana-southwestern Michigan area, 1st Source Corporation supports its trust-based approach with stability. The Corporation holds total assets of $8.9 billion, and the Bank maintains a Bauer 5-star rating, which is the highest safety rating, signaling prudence for deposit clients. This local commitment is further evidenced by the bank's continued expansion, including opening a new banking center in Carmel, Indiana, in early April 2025.

Transactional service for consumer banking products.

For standard consumer banking needs, the relationship leans heavily toward efficient, self-service transactions, as supported by the digital statistics above. Consumer products include checking and savings accounts, certificates of deposit, and various consumer loans. The high daily usage of mobile apps-where 90% of users check their balance and 79% view recent transactions-suggests that a large volume of consumer interaction is purely transactional and automated.

The bank's Q3 2025 net income reached $42.30 million, reflecting the successful management of this dual-pronged relationship strategy.

Finance: draft 13-week cash view by Friday.

1st Source Corporation (SRCE) - Canvas Business Model: Channels

You're looking at how 1st Source Corporation actually gets its services to clients, which is a mix of deep local roots and specialized national reach. Honestly, the physical footprint is central to their identity as the largest locally controlled financial institution in the northern Indiana-southwestern Michigan area.

The core delivery mechanism is the physical branch network. As of early 2025 reporting, 1st Source Bank operates a physical network of 77 banking centers across Indiana and Michigan, which supports their traditional consumer and commercial banking services. This physical presence is complemented by specialized national reach through the 1st Source Bank Specialty Finance Group, which maintains 18 locations nationwide to serve clients needing financing for aircraft, heavy equipment, and vehicle fleets.

The wealth management side also uses dedicated physical locations. 1st Source has 9 Trust and Wealth Advisory Services offices, positioning them as the area's largest and most experienced wealth advisory team, specializing in custom solutions for legacy and estate planning.

Here's a quick look at the physical distribution points supporting the business:

Channel Component	Count/Scope	Geographic Focus
Banking Centers	77	Indiana and Michigan
Specialty Finance Group Locations	18	Nationwide
Trust and Wealth Advisory Services Offices	9	Regional/Select Markets

Digital channels are essential for modern convenience, supporting the overall structure that manages total assets of $9.1 billion as of November 2025. 1st Source Corporation provides access through its mobile app and online banking platforms, alongside a broad ATM network, ensuring clients can manage routine transactions securely.

For more complex, high-value services, direct sales teams are the channel. These teams focus on the Specialty Finance Group and commercial lending, where relationships and deep expertise drive deal flow. This direct sales approach is key to generating the $6.803 billion in net loans and leases reported in their latest financial filings, which is a primary revenue driver for the corporation.

The effectiveness of these channels is reflected in the financial results; for the first nine months of 2025, the company reported a record year-to-date net income of $117.14 million. The channels collectively support a deposit base totaling $7.410 billion as of the latest filing.

You can access more details on the service offerings delivered through these channels:

• Personalized investment strategy and private banking.
• Expertise in tax efficiency and estate/succession planning.
• Financing for aircraft, construction equipment, and vehicle fleets.
• Trust and estate administration services.

1st Source Corporation (SRCE) - Canvas Business Model: Customer Segments

The customer base for 1st Source Corporation (SRCE) is geographically focused but operationally diverse, serving clients across its core region of northern Indiana and southwestern Michigan, alongside national clients for specialized financing.

Small and medium-sized businesses (SMBs) and agribusinesses in the core region represent a foundational segment, evidenced by 1st Source Bank receiving recognition from the U.S. Small Business Administration (SBA) for small business lending across Indiana for the 12th consecutive year.

National clients requiring financing for aircraft, construction, and renewable energy are served by the Specialty Finance Group, which offers financing for construction equipment, new and pre-owned private and cargo aircraft, and various vehicle types for fleet purposes.

Professional firms, such as legal and medical practices, fall under the commercial lending umbrella, which, as of June 30, 2023, represented 81.9 percent of the loan portfolio, a structure likely maintained given the focus on commercial and agricultural loans.

Affluent individuals and families utilizing Wealth Management and Trust services are supported by a division with nine Trust and Wealth Advisory Services locations, aiming to help clients achieve security and build wealth.

Individual consumers for traditional checking, savings, and mortgage products are served through Consumer Services, contributing to the overall deposit base, which increased by $289.69 million from the third quarter of 2024 to the third quarter of 2025.

The overall scale of the lending activity supporting these segments is reflected in the total average loans and leases reaching $6.88 billion in 2025 Year-to-Date, with average loans and leases growing by $409.71 million in the third quarter of 2025 compared to the third quarter of 2024.

Here's a quick look at the financial scale as of late 2025 reporting periods:

Metric	Value/Period	Date/Period End
Total Assets	$9.1 billion	August 2025
Total Average Loans and Leases	$6.88 billion	2025 YTD
Quarterly Net Income	$42.30 million	Q3 2025
Diluted Earnings Per Share	$1.71	Q3 2025
Quarterly Cash Dividend	$0.40 per common share	Q3 2025
Forbes Best Banks Ranking	#26 out of 100	2025 List

You can see the commitment to the core regional business through the bank's consistent recognition.

• Bank recognized by Forbes as one of America's Best Banks, ranking #26.
• Bank recognized by SBA for small business lending for 12th straight year.
• Specialty Finance Group has 18 locations nationwide.
• Wealth Management division has nine locations.
• The bank is headquartered in South Bend, Indiana.

Finance: draft 13-week cash view by Friday.

1st Source Corporation (SRCE) - Canvas Business Model: Cost Structure

The Cost Structure for 1st Source Corporation is heavily influenced by its banking operations, particularly interest-bearing liabilities and personnel costs across its physical footprint and digital initiatives.

The total Noninterest Expense for the third quarter of 2025 was reported at $54.78 million, an increase of 7.77% from the third quarter of 2024, which was $3.95 million higher. For the first nine months of 2025, total noninterest expense increased 7.29%, or $10.89 million, compared to the first nine months of 2024.

The Interest Expense paid on interest-bearing deposits and borrowings is a primary cost driver, directly impacting the Net Interest Income (NII). Tax-equivalent NII for the second quarter of 2025 was $85.35 million.

The Provision for Credit Losses (PCL) was a significant quarterly cost, recorded at $7.69 million in Q2 2025. This compares to a PCL of $3.27 million in the first quarter of 2025. The allowance for loan and lease losses stood at 2.30% of total loans and leases as of June 30, 2025.

Costs associated with the physical network and technology are embedded within the Noninterest Expense. The Community Banking division operates 78 banking centers across northern Indiana and southwestern Michigan.

Here's a look at the components driving the cost structure:

Cost Component Category	Latest Reported Metric/Amount	Period/Context
Total Noninterest Expense	$54.78 million	Q3 2025
Provision for Credit Losses (PCL)	$7.69 million	Q2 2025
Net Interest Income (Tax-Equivalent)	$85.35 million	Q2 2025
Branch Network Count	78 banking centers	As of Q2 2025 presentation

Salaries and Employee Benefits is a major component of the total Noninterest Expense. The increase in Q3 2025 Noninterest Expense included increased furniture, equipment and occupancy expenses.

Digital transformation efforts are a key area of investment, reflected in technology costs. The bank continues to emphasize its digital transformation, with mobile adoption increasing to 69% in Q2 2025.

Key cost-related operational metrics include:

• The efficiency ratio (non-GAAP) improved to 48.40% in Q2 2025 from 51.17% in Q2 2024.
• Furniture and equipment expense was relatively flat in 2024 compared to 2023.
• Occupancy expense rose in 2024 compared to 2023.
• The bank joined the U.S. Faster Payments Council in February 2025.

The total Noninterest Expense for the first six months of 2025 was up $6.94 million year-over-year.

1st Source Corporation (SRCE) - Canvas Business Model: Revenue Streams

The revenue streams for 1st Source Corporation are heavily weighted toward traditional banking operations, though fee-based services contribute significantly to overall income.

The core engine remains the Net Interest Income derived from the loan and lease portfolio. For the third quarter of 2025, this figure totaled $88.75 million. This strong performance was supported by a tax-equivalent net interest margin of 4.09% in Q3 2025, which marked the seventh consecutive quarter of margin expansion. Historically, over the last five years, net interest income represented approximately 74.9% of 1st Source Corporation's total revenue.

Total GAAP revenue for the third quarter of 2025 was reported at $110.66 million. Based on this, the total Non-Interest Income for the quarter is approximately $21.91 million (calculated as Total Revenue of $110.66 million minus Net Interest Income of $88.75 million). This total non-interest income saw a decline of 5.0% quarter-over-quarter.

The components making up this non-interest income are varied, including several fee-based services and investment-related activities:

• Non-interest income from Wealth Management and Trust fees.
• Fee income from deposit accounts, credit cards, and cash management services.
• Revenue from 1st Source Insurance brokerage services.

Gains and losses from investment securities and loan sales are also a component. The third quarter of 2025 results specifically included $1.88 million in pre-tax losses from the sale of approximately $73 million of available-for-sale securities as part of portfolio repositioning. The company also recorded a $1.00 million charitable contribution to the 1st Source Foundation in the quarter.

Here's a breakdown of the key revenue figures for the third quarter of 2025:

Revenue Component	Q3 2025 Amount (USD Millions)
Net Interest Income	88.75
Total GAAP Revenue	110.66
Calculated Total Non-Interest Income	21.91
Pre-Tax Loss from Securities Sale	1.88

You can see the key drivers of the non-interest income streams:

• Trust/Wealth Advisory fees: Mentioned as a component that declined QoQ.
• Swap fees: Mentioned as a component that declined QoQ.
• Equipment rental income: Pressured year-over-year.

Finance: draft the Q4 2025 revenue projection model by next Tuesday.