SRCEMEDIUM SIGNALFINANCIAL10-K

SRCE delivered strong operational performance with 17.8% net income growth despite a 356% surge in interest expense, while significantly expanding share buybacks and growing both assets and equity.

The massive increase in interest expense reflects the challenging rate environment but was more than offset by strong operational execution, resulting in solid earnings growth and robust cash generation. The company's confidence is evident in its 77x increase in share buybacks to $13.9M and continued expansion with new banking locations.

Comparing 2026-02-17 vs 2025-02-18View on EDGAR →
FINANCIAL ANALYSIS

SRCE demonstrated resilient financial performance with net income rising 17.8% to $68.1M and operating cash flow increasing 15.1% to $223.1M, despite interest expenses surging 356% to $138.3M due to the higher rate environment. The company strengthened its balance sheet with stockholders' equity growing 14.8% to $1.3B and total assets reaching $9.06B, while dramatically increasing shareholder returns through $13.9M in buybacks versus just $178K in the prior year. The 55.7% reduction in credit loss provisions signals improving asset quality, though cash declined 15.9% likely due to increased lending activity and capital deployment.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
+7692.1%
$178K$13.9M

Share repurchases increased 7692.1% — management returning capital, signals confidence in intrinsic value.

Interest Expense
P&L
+355.6%
$30.3M$138.3M

Interest expense surged 355.6% — significant debt increase or rising rates materially impacting earnings.

Provision for Credit Losses
P&L
-55.7%
$13.2M$5.9M

Provisions reduced 55.7% — improving credit quality or reserve release boosting reported earnings.

Net Income
P&L
+17.8%
$57.8M$68.1M

Net income grew 17.8% — bottom-line growth signals improving overall business health.

Cash & Equivalents
Balance Sheet
-15.9%
$99.1M$83.4M

Cash decreased 15.9% — monitor burn rate and upcoming capital needs.

Operating Cash Flow
Cash Flow
+15.1%
$193.9M$223.1M

Operating cash flow grew 15.1% — strong conversion of earnings to cash, healthy business fundamentals.

Stockholders Equity
Balance Sheet
+14.8%
$1.1B$1.3B

Equity base grew 14.8% — retained earnings accumulation or equity issuance strengthening the balance sheet.

LANGUAGE CHANGES
NEW — 2026-02-17
PRIOR — 2025-02-18
ADDED
1st Source Bank ( Bank ), its wholly-owned banking subsidiary, offers commercial and consumer banking services, trust and wealth advisory services, and insurance to individual and business clients (through 1st Source Insurance, Inc.) from most of our 78 banking center locations in 19 counties in Indiana and Michigan and Sarasota County in Florida.
At December 31, 2025, we had consolidated total assets of $9.06 billion, total loans and leases of $7.05 billion, total deposits of $7.23 billion, and total shareholders equity of $1.27 billion.
Other business services include commercial leasing, treasury management services, payment services (including digital and real time/immediate payments), Fedwires, ACH and merchant services, and retirement planning services.
The Bank also competes with other financial service companies, such as credit unions, securities firms, insurance companies, finance or mortgage companies, real estate investment trusts, and some governmental agencies.
OUR PEOPLE At December 31, 2025, we had approximately 1,190 colleagues on a full-time equivalent basis.
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REMOVED
1st Source Bank ( Bank ), its banking subsidiary, offers commercial and consumer banking services, trust and wealth advisory services, and insurance to individual and business clients through most of our 77 banking center locations in 18 counties in Indiana and Michigan and Sarasota County in Florida.
At December 31, 2024, we had consolidated total assets of $8.93 billion, total loans and leases of $6.85 billion, total deposits of $7.23 billion, and total shareholders equity of $1.11 billion.
Other business services include commercial leasing, treasury management services, payment services, including digital and real time/immediate payments, Fedwires, ACH and merchant services and retirement planning services.
The Bank also competes with other financial service companies, such as credit unions.
securities firms, insurance companies, finance or mortgage companies, real estate investment trusts, and some governmental agencies.
+7 more — sign up free →
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