Slide 1: Investor Presentation 3rd Quarter 2025
INVESTOR PRESENTATION 3rd Quarter 2025 NASDAQ: SRCE | www.1stsource.com
Slide 2: Disclosures
DISCLOSURES Forward-Looking Statements Except for historical information, the matters discussed may include “forward-looking statements.” Those statements are subject to material risks and uncertainties. 1st Source cautions readers not to place undue reliance on any forward-looking statements, which
Slide 3: Corporate Overview
CORPORATE OVERVIEW Founded in 1863 $9.1 billion Community Bank with International Reach headquartered in South Bend, Indiana Community Banking Locations throughout northern Indiana, greater Indianapolis, and southwestern Michigan Business and personal banking, payment services, lending, mortgage
Slide 4: Mission & Vision
MISSION & VISION 4page Mission To help our clients achieve security, build wealth and realize their dreams by offering straight talk, sound advice and keeping their best interests in mind for the long-term. Vision Offer our clients the highest quality service Be the financial institution of choi
Slide 5: Market Area
MARKET AREA 5page Specialty Finance Loans & Leases $3.51 billion Community Bank Loans & Leases $3.46 billion
Slide 6: Business Mix
BUSINESS MIX Loans & Leases 6page COMMUNITY BANKING 50% SPECIALTY FINANCE 50% Business 75% Personal 25%
Slide 7: Community Banking
COMMUNITY BANKING 78 Banking Centers 98 Twenty-four-hour ATMs 9 Trust & Wealth Advisory locations with approximately $6.1 billion of assets under management 10 1st Source Insurance offices 3 Loan Production offices 7page In person OnlineOver the phone Mobile
Slide 8: Renewable Energy Financing
8page RENEWABLE ENERGY FINANCING Our Renewable Energy Financing Division provides sponsors and developers with one-stop-shop financing by providing construction loans, permanent loans, and tax equity investments to community solar, commercial and industrial, small utility scale, university, and muni
Slide 9: Specialty Finance Group
SPECIALTY FINANCE GROUP Auto and Light Truck Division Auto/light truck division provides financing for automobile rental and commercial auto leasing companies, and light truck rental and leasing companies. Medium and Heavy Duty Truck Division The medium and heavy duty truck division finances highway
Slide 10: Digital banking and mobile app
93 123 146 156 0 25 50 75 100 125 150 175 Q3 22 Q3 23 Q3 24 Q3 25 Zelle Transactions (000s)7 67 70 75 76 45 50 55 60 65 70 75 80 Q3 22 Q3 23 Q3 24 Q3 25 Mobile Users (000s)² Zelle (P2P) HIGHLY RATED, FEATURE-RICH MOBILE APP Budget & Account Aggregation Other Services: Balance & Transfers, Pay Bills
Slide 11: Instant Payments
page 11 INSTANT PAYMENTS Launched instant payment systems Real Time Payments (RTP) and FedNow over three phases in 2023: • RTP - Receive & Send - May ‘23 • FedNow - Receive & Send - July ‘23 Send capabilities for instant payments restricted to business clients only Since initial launch, 1st Source
Slide 12: An Experienced and Proven Team
AN EXPERIENCED AND PROVEN TEAM Executive Team 6 executives with an average 36 years each of banking experience and 27 years with 1st Source Business Banking Officers 40 business banking officers with an average 21 years each of lending experience and with 1st Source from 1 to 36 years Specialty Fina
Slide 13: Performance: Client
PERFORMANCE CLIENT Indiana SBA Community Lender Award 2013-2024 #1 SBA Lender Headquartered in State of Indiana with assets of less than $10 billion #1 Deposit share in our 16 contiguous county market #4 Lender of Community Development Loans (Total Dollars) in State of Indiana by Banks Headquartered
Slide 14: Performance: Leadership
14page PERFORMANCE LEADERSHIP 2025 Business Reporter Best Banks in America 2024 US News & World Report Best Companies to Work For – Midwest Leaders in Banking Excellence Award, the Indiana Bankers Association’s highest honor Christopher J. Murphy III Executive Chairman, 1st Source Corporation & 1st
Slide 15: Financial Review
FINANCIAL REVIEW
Slide 16: Core Deposit Franchise
16page 5987 6426 6121 6201 6413356 285 836 918 956 0.19% 0.38% 1.77% 2.34% 2.15% 0.00% 1.00% 2.00% 3.00% 4.00% 0 3,000 6,000 9,000 2021 2022 2023 2024 2025 YTD Core Deposits ($MM) Non-core Deposits ($MM) Effective Rate on Deposits (%) CORE DEPOSIT FRANCHISE TOTAL AVERAGE DEPOSITS *Non-core deposits
Slide 17: Diversified Deposit Mix
17page Time 25% Noninterest- bearing demand 22% Interest- bearing demand 34% Savings 19% Public Fund 20% Brokered 7% Business 27% Consumer (1) 46% (1) Includes business customer certificates of deposit which were immaterial Approximately 230,000 deposit accounts with an average balance of $32,300. A
Slide 18: Deposit Market Share
18page $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 $7,000,000 $8,000,000 June 19 June 20 June 21 June 22 June 23 June 24 June 25 1st Source Lake City Bank Chase Horizon Bank Fifth Third DEPOSIT MARKET SHARE 16 COUNTY CONTIGUOUS MARKET* Leading Market Share in Community Banking
Slide 19: Growing Loan Portfolio
19page 5438 5567 6204 6598 6928 4.32% 4.74% 6.25% 6.84% 6.78% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 3000 4500 6000 7500 2021 2022 2023 2024 2025 YTD Loans & Leases ($MM) Yield on Loans & Leases - FTE (%)* GROWING LOAN PORTFOLIO Total Average Loans & Leases * See “Reconciliation of non-GAAP Financial M
Slide 20: Diversified Loan Portfolio
20page Commercial Real Estate 18% Residential Real Estate 10% Consumer 2% Medium and Heavy Duty Truck 4% Auto and Light Truck 14% Construction Equipment 17% Aircraft 16% Commercial 19% DIVERSIFIED LOAN PORTFOLIO 2025 Average Loans by Type
Slide 21: Strong Credit Quality
21page 2.38% 2.32% 2.26% 2.27% 2.32% 2021 2022 2023 2024 2025 YTD STRONG CREDIT QUALITY % of Net Loans and Leases Loan & Lease Loss Allowance 0.77% 0.45% 0.37% 0.46% 0.91% 2021 2022 2023 2024 2025 YTD Low Nonperforming Assets 0.16% 0.03% -0.04% 0.09% 0.08% 2021 2022 2023 2024 2025 YTD Limited Losses
Slide 22: Net Income & Earnings Per Share
22page 118.5 120.5 124.9 132.6 101.2 117.1 4.70 4.84 5.03 5.36 4.09 4.74 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $0 $15 $30 $45 $60 $75 $90 $105 $120 $135 $150 2021 2022 2023 2024 2024 YTD 2025 YTD Net Income ($MM) EPCS (Diluted) NET INCOME & EARNINGS PER SHARE
Slide 23: Pre-Tax, Pre-Provision Income
23page 150.6 170.0 167.6 183.5 139.9 162.7 $0 $50 $100 $150 $200 2021 2022 2023 2024 2024 YTD 2025 YTD PRE-TAX, PRE-PROVISION INCOME ($MM) *See “Reconciliation of non-GAAP Financial Measures” in Appendix.
Slide 24: Income Performance Metrics
24page 1.41% 1.14% 1.53% 1.49% 1.48% 1.52% 1.75% 11.50% 9.41% 13.07% 13.81% 13.48% 12.54% 13.24% 12.85% 10.42% 14.40% 15.28% 14.82% 13.62% 14.25% 6.00% 10.00% 14.00% 18.00% 0.80% 1.40% 2.00% 2.60% 3.20% 2019 2020 2021 2022 2023 2024 2025 YTD R O AE a nd R O AT E R O AA Return on Average Assets Retur
Slide 25: Net Interest Margin (FTE)
25page 237.1 264.1 279.4 301.4 221.9 255.3 3.23% 3.45% 3.51% 3.64% 3.59% 4.00% 2.75% 3.75% 4.75% 5.75% $0 $55 $110 $165 $220 $275 $330 2021 2022 2023 2024 2024 YTD 2025 YTD Net Interest Income ($MM) Net Interest Margin (%) NET INTEREST MARGIN (FTE)* * See “Reconciliation of non-GAAP Financial Measur
Slide 26: Diverse Sources of Noninterest Income
26page Trust, Wealth Advisory, and Retirement Plan Services 31% Other 20% Debit Card 20% Service Charges on Deposit Accounts 15% Insurance Commissions 9% Mortgage Banking 4% Equipment Rental 1% DIVERSE SOURCES OF NONINTEREST INCOME Fair Value of Assets Under Management of $6.1B * Note: Equipment ren
Slide 27: Operating Expenses
27page 172.5 174.7 194.6 199.5 146.2 158.4 53.5% 51.1% 54.2% 51.9% 51.5% 49.6% 45.0% 55.0% 65.0% 75.0% $25.0 $75.0 $125.0 $175.0 $225.0 2021 2022 2023 2024 2024 YTD 2025 YTD Noninterest Expense ($MM)* Efficiency - Adjusted (%)* OPERATING EXPENSES * Note: Noninterest expense is shown net of leased eq
Slide 28: Strong Capital Position
16.76% 16.10% 16.25% 17.08% 17.85% 2021 2022 2023 2024 2025 YTD 28page 11.89% 12.63% 13.26% 14.05% 14.55% 2021 2022 2023 2024 2025 YTD STRONG CAPITAL POSITION Tier 1 Leverage Ratio 15.50% 14.84% 14.99% 15.82% 16.59% 2021 2022 2023 2024 2025 YTD Tier 1 Risk Based Ratio Total Risk Based Capital Ratio
Slide 29: Long History of Conservative Capital
29page 17.85% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 1st Source Corp Well-Capitalized LONG HISTORY OF CONSERVATIVE CAPITAL Total Capital (To Risk-Weighted Assets) 10% Well Capitalized
Slide 30: Tangible Book Value per Common Share
30page $26.30 $29.18 $31.62 $33.64 $31.63 $37.06 $41.89 $47.17 $20.00 $25.00 $30.00 $35.00 $40.00 $45.00 $50.00 2018 2019 2020 2021 2022 2023 2024 2025 YTD TANGIBLE BOOK VALUE PER COMMON SHARE* * See “Reconciliation of non-GAAP Financial Measures” in Appendix.
Slide 31: Common Dividends Per Share
31page 0.671 0.720 0.760 0.960 1.100 1.130 1.210 1.260 1.300 1.400 1.520 $0.000 $0.200 $0.400 $0.600 $0.800 $1.000 $1.200 $1.400 $1.600 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD COMMON DIVIDENDS PER SHARE 37 YEARS OF CONSECUTIVE DIVIDEND GROWTH
Slide 32: Delivering Returns to Shareholders
32page DELIVERING RETURNS TO SHAREHOLDERS Value of $100 Invested in 1st Source since 1971 Inception with Dividends Reinvested vs. Total Return of Stock Indices
Slide 33: Delivering Returns to Shareholders
33page DELIVERING RETURNS TO SHAREHOLDERS December 31, 2007 – October 20, 2025
Slide 34: Performance: Financial
PERFORMANCE FINANCIAL 2019-2025 KBW Bank Honor Roll Seventh consecutive year named among top 5% of banks with more than $500 million in total assets and ten consecutive years of increased earnings per share 2024 S&P Global Market Intelligence’s Top 50 Community Banks #25 with $3B to $10B in assets 2
Slide 35: Investment Considerations
INVESTMENT CONSIDERATIONS Consistent and superior financial performance with a focus on long-term earnings per share and tangible book value growth Experienced and proven team with significant investment in bank Diversification of product mix and geography with asset generation capability Leading ma
Slide 36: Contact Information
CONTACT INFORMATION Christopher J. Murphy III Executive Chairman of the Board 1st Source Corporation and 1st Source Bank (574) 235-2711 Murphy-c@1stsource.com Andrea G. Short President and CEO, 1st Source Corporation CEO, 1st Source Bank (574) 235-2348 shorta@1stsource.com Brett A. Bauer CFO and Tre
Slide 37: Appendix
APPENDIX
Slide 38: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET 38page (Dollars in millions) 2021 2022 2023 2024 2025 YTD Cash and cash equivalents 525$ 123$ 130$ 125$ 214$ Investment securities and other investments* 1,890 1,800 1,648 1,560 1,517 Loans and leases, net of unearned discount 5,360 6,015 6,520 6,857 6,972 Allowance for lo
Slide 39: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT 39page (Dollars in millions) 2021 2022 2023 2024 2024 YTD 2025 YTD Net interest income 237$ 263$ 279$ 301$ 221$ 255$ (Recovery of provision) provision for credit losses (4) 13 6 12 9 12 Noninterest income* 86 81 84 82 65 66 Noninterest expense* 172 174 195 200 146 158 I
Slide 40: Aircraft Portfolio Industries by NAICS
40page Transportation & Warehousing 12% Finance & Insurance and Real Estate 16% Services 20% Retail Trade 8% Construction 13% Manufacturing 13% Ag, Forestry, Fishing & Hunting 9% Wholesale Trade 4% Other* 5% * Other includes: Mining, Utilities, and Information AIRCRAFT PORTFOLIO INDUSTRIES BY NAICS
Slide 41: Asset Liability Management
59% 37% 4% 41page Interest Rate Risk Characteristics • Variable rate loans reprice quickly — 91.0% of Variable reprice within 3 months. • Fixed rate loans have short terms • Weighted average remaining life of 2.86 years. • Stable, low-cost deposit funding base — The effective rate on deposits as of
Slide 42: Ownership Summary
42page OWNERSHIP SUMMARY Institution (Top 10 Institutions) Shares % of Total BlackRock Inc. 1,997,176 8.2% Dimensional Fund Advisors LP 1,478,690 6.0% Vanguard Group Inc. 1,245,505 5.1% Charles Schwab Investment Mgmt 625,783 2.6% State Street Global Advisors Inc. 587,201 2.4% Geode Capital Managemen
Slide 43: Reconciliation of Non-GAAP Financial Measures
43page RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Yield on Loans and Leases (Dollars in thousands) 2021 2022 2023 2024 2025 YTD (A) Loans and leases interest income (GAAP) 234,583$ 263,677$ 387,143$ 451,115$ 350,865$ (B) Plus: loans and leases fully tax-equivalent adjustments 319 3
Slide 44: Reconciliation of Non-GAAP Financial Measures
44page RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Net Interest Margin (Dollars in thousands) 2021 2022 2023 2024 2024 YTD 2025 YTD (A) Interest income (GAAP) 254,772$ 293,816$ 416,907$ 484,017$ 360,867$ 381,408$ (B) Plus: fully tax-equivalent adjustments 459 628 741 586 436 454 (C)
Slide 45: Reconciliation of Non-GAAP Financial Measures
45page RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Efficiency Ratio (Dollars in thousands) 2021 2022 2023 2024 2024 YTD 2025 YTD (A) Net interest income (GAAP) 236,638$ 263,469$ 278,647$ 300,817$ 221,451$ 254,880$ (B) Net interest income - FTE 237,097 264,097 279,388 301,403 221,887
Slide 46: Reconciliation of Non-GAAP Financial Measures
46page RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Tangible Book Value per Common Share (Dollars in thousands, except for per share data) 2018 2019 2020 2021 2022 2023 2024 2025 YTD (A) Total common shareholders' equity (GAAP) 762,082$ 828,277$ 886,845$ 916,255$ 864,068$ 989,568$ 1,