1st Source Corporation — Cyborg Score 7/10

Solid
Regional Banking & Specialty Finance

Strategic Profile

1st Source operates primarily through 1st Source Bank, serving individuals and businesses through a network across 18 counties in Indiana and Michigan, plus Sarasota County in Florida. The bank distinguishes itself through its Specialty Finance Group operating nationwide, focusing on construction equipment, private and commercial aircraft, auto and light truck fleet financing, and medium to heavy-duty truck financing.

Cyborg Score Rationale

1st Source has averaged a Tier 1 capital ratio of 14.2%, well above regulatory minimums of 7-10%, indicating strong capital positions. The company has averaged an ROE of 12.5% over five years, excellent for banking. Revenue grew at 5.5% compounded annual growth rate over five years, slightly above banking company averages.

Top Insights

  • Market cap of $1.71B with a PE ratio of 10.92 and a dividend yield of 2.27%.
  • Net margin of 26.38% and ROE of 12.44% as of Q4 2025 earnings.
  • Specialty Finance Group provides nationwide competitive advantage through diversified equipment and aircraft financing.
  • Analyst consensus rating is Hold with average price target of $75.33.

Named Competitors

  • Regional Banking — Larger regional bank competitor in Midwest markets
  • Regional Banking — Larger regional bank competitor in Midwest markets
  • Equipment Finance — Specialized equipment financing competitor

Recent Developments

  • (January 2026) Q4 2025 earnings released with $1.67 EPS.
  • (January 2026) Piper Sandler raised price target from $80 to $83 with overweight rating.
  • (February 2026) Quarterly dividend of $0.40 per share paid on February 13, 2026.

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