1st Source Corporation · NASDAQ:SRCE
1st Source — Investor Presentation (January 2026)
46 slides from 1st Source's investor presentation, January 2026
Slide 1: Investor Presentation 4th Quarter 2025
INVESTOR PRESENTATION 4th 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 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 choice in
Slide 5: Market Area
MARKET AREA Specialty Finance Loans & Leases $3.47 billion Community Bank Loans & Leases $3.58 billion page 5
Slide 6: Business Mix
BUSINESS MIX Loans & Leases Business Personal 76% 24% COMMUNITY BANKING SPECIALTY FINANCE 51% 49% page 6
Slide 7: Community Banking
COMMUNITY BANKING 78 Banking Centers 98 Twenty-four-hour ATMs 9 Trust & Wealth Advisory locations with approximately $6.3 billion of assets under management 13 1st Source Insurance offices 3 Loan Production offices In person Over the phone Online Mobile page 7
Slide 8: Renewable Energy Financing
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 municipal
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: Highly Rated, Feature-Rich Mobile App
HIGHLY RATED, FEATURE-RICH MOBILE APP 4.8 Digital Adoption¹ Mobile Users (000s)² 12K RATINGS 6 100% 80 23% 22% 20% 18% 75 75% 13% 12% 11% 70 14% 65 50% 60 76 76 65% 68% 71% 71 63% 55 67 25% 50 0% 45 Q4 22 Q4 23 Q4 24 Q4 25 Q4 22 Q4 23 Q4 24 Q4 25 12K RATINGS Mobile & Online Online Only Non-Dig
Slide 11: Instant Payments
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 receive
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 29 years with 1st Source Business Banking Officers 38 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 Gold Award 2013-2025 #1 SBA Lender Headquartered in State of Indiana with assets of less than $10 billion #1 Deposit share in our 16 contiguous county market #4 Lender of Community Development Loans (Total Dollars) in State of Indiana by Banks Headquar
Slide 14: Performance Leadership
PERFORMANCE LEADERSHIP 2025 Business Reporter 2025 Forbes’ Best Banks in America • World’s Best Banks • America’s Best Banks 2024 US News & World Report • America’s Best Midsize Employers Best Companies to Work For – Midwest • Best-In-State Banks 2025 Leaders in Banking Excellence Award, the Indiana
Slide 15: Financial Review
FINANCIAL REVIEW
Slide 16: Core Deposit Franchise
CORE DEPOSIT FRANCHISE TOTAL AVERAGE DEPOSITS Core Deposits ($MM) Non-core Deposits ($MM) Effective Rate on Deposits (%) 9,000 4.00% 7382 6957 7119 6711 915 3.00% 6343 285 836 918 6,000 356 6426 6467 6121 6201 5987 2.34% 2.00% 2.11% 1.77% 3,000 1.00% 0.38% 0.19% 0 0.00% 2021 2022 2023 2024 2025 *Non
Slide 17: Diversified Deposit Mix
Diversified Deposit Mix End of Period Balances Account Type Owner Classification Savings 20% Consumer (1) 48% Public Time Fund 22% 21% Brokered 3% Interest- bearing demand Noninterest- 36% bearing Business demand 28% 22% (1) Includes business customer certificates of deposit which were immaterial Ap
Slide 18: Deposit Market Share 16 County Contiguous Market
DEPOSIT MARKET SHARE 16 COUNTY CONTIGUOUS MARKET* Leading Market Share in Community Banking Markets ($000) $8,000,000 2025 1st Source ______14.18% $7,000,000 Lake City Bank__10.28% $6,000,000 Chase_____________9.13% $5,000,000 Horizon Bank _____4.71% Fifth Third ________4.68% $4,000,000 $3,000,000 $
Slide 19: Growing Loan Portfolio
GROWING LOAN PORTFOLIO Total Average Loans & Leases Loans & Leases ($MM) Yield on Loans & Leases - FTE (%)* 7500 8.00% 6935 6598 7.00% 6204 6.84% 6.79% 6000 5567 6.25% 6.00% 5438 5.00% 4500 4.74% 4.32% 4.00% 3000 3.00% 2021 2022 2023 2024 2025 * See “Reconciliation of non-GAAP Financial Measures” in
Slide 20: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO 2025 Average Loans by Type Commercial Commercial 19% Real Estate 18% Residential Real Estate 10% Aircraft 16% Consumer 2% Medium and Heavy Duty Truck 4% Auto and Light Construction Equipment Truck 17% 14% page 20
Slide 21: Strong Credit Quality
STRONG CREDIT QUALITY % of Net Loans and Leases Loan & Lease Loss Allowance Nonperforming Assets Net Charge-Offs (Recoveries) Solid Reserves Low Nonperforming Assets Limited Losses 2.38% 2.32% 2.26% 2.27% 2.30% 1.10% 0.77% 0.45% 0.46% 0.37% 0.16% 0.09% 0.06% 0.03% -0.04% 2021 2022 2023 2024 2025 202
Slide 22: Net Income & Earnings Per Share
NET INCOME & EARNINGS PER SHARE Net Income ($MM) EPCS (Diluted) $180 $8.00 158.3 $160 $7.00 $140 132.6 124.9 118.5 120.5 $120 6.41 $6.00 $100 $80 5.36 $5.00 $60 5.03 4.84 4.70 $40 $4.00 $20 $0 $3.00 2021 2022 2023 2024 2025 page 22
Slide 23: Pre-Tax, Pre-Provision Income
PRE-TAX, PRE-PROVISION INCOME $250 ($MM) 216.9 $200 183.5 170.0 167.6 150.6 $150 $100 $50 $0 2021 2022 2023 2024 2025 *See “Reconciliation of non-GAAP Financial Measures” in Appendix. page 23
Slide 24: ROAE and ROATE
INCOME PERFORMANCE METRICS 1st SOURCE PERFORMS WELL AGAINST PEERS WHILE MAINTAINING STRONG CAPITAL LEVELS YTD Median Peer Data* National C&I Midwest ROATE 14.06% 14.02% 3.20% 18.00% ROAE 10.15% 10.59% ROAA 1.18% 1.27% 15.28% 14.82% 2.60% 14.40% 14.14% 13.62% ROAE and ROATE 14.00% 12.85% 13.81% 13.48
Slide 25: Net Interest Margin (FTE)
NET INTEREST MARGIN (FTE)* Net Interest Income ($MM) Net Interest Margin (%) $375 5.75% 348.8 301.4 $300 279.4 264.1 237.1 4.75% $225 4.07% $150 3.64% 3.75% 3.45% 3.51% $75 3.23% $0 2.75% 2021 2022 2023 2024 2025 * See “Reconciliation of non-GAAP Financial Measures” in Appendix. page 25
Slide 26: Diverse Sources of Noninterest Income
DIVERSE SOURCES OF NONINTEREST INCOME Noninterest Mortgage Insurance Income Commissions Banking Equipment Rental 5% Composition 9% 1% 2025 = $83.2MM* Trust, Wealth Advisory, and Retirement Service Charges on Plan Services Deposit Accounts 34% 16% Fair Value of Assets Under Management of $6.3B Debit
Slide 27: Operating Expenses
OPERATING EXPENSES Noninterest Expense ($MM)* Efficiency - Adjusted (%)* $250.0 75.0% 214.4 199.5 $200.0 194.6 65.0% 172.5 174.7 $150.0 55.0% 53.5% 54.2% 51.9% 51.1% 49.3% $100.0 45.0% $50.0 35.0% 2021 2022 2023 2024 2025 * Note: Noninterest expense is shown net of leased equipment depreciation. See
Slide 28: Strong Capital Position
STRONG CAPITAL POSITION Tier 1 Leverage Ratio Tier 1 Risk Based Ratio 16.79% 15.50% 14.99% 15.82% 14.05% 14.69% 14.84% 12.63% 13.26% 11.89% 8% Well Capitalized 5% Well Capitalized 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Total Risk Based Capital Ratio Tangible Common Equity / Tangible Asset
Slide 29: Long History of Conservative Capital
LONG HISTORY OF CONSERVATIVE CAPITAL Total Capital (To Risk-Weighted Assets) 20.00% 18.05% 18.00% 16.00% 14.00% 12.00% 10% Well Capitalized 10.00% 8.00% 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 1st Source Corp Well-Capitalized page 29
Slide 30: Tangible Book Value Per Common Share
TANGIBLE BOOK VALUE PER COMMON SHARE* $55.00 $50.00 $48.88 $45.00 $41.89 $40.00 $37.06 $35.00 $33.64 $31.62 $31.63 $30.00 $29.18 $26.30 $25.00 $20.00 $15.00 2018 2019 2020 2021 2022 2023 2024 2025 * See “Reconciliation of non-GAAP Financial Measures” in Appendix. page 30
Slide 31: Common Dividends Per Share
COMMON DIVIDENDS PER SHARE 38 YEARS OF CONSECUTIVE DIVIDEND GROWTH $1.600 1.520 1.400 $1.400 1.300 1.260 1.210 $1.200 1.130 1.100 $1.000 0.960 $0.800 0.760 0.720 0.671 $0.600 $0.400 $0.200 $0.000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 page 31
Slide 32: Delivering Returns to Shareholders
DELIVERING RETURNS TO SHAREHOLDERS Value of $100 Invested in 1st Source since 1971 Inception with Dividends Reinvested vs. Total Return of Stock Indices page 32
Slide 33: Delivering Returns to Shareholders
DELIVERING RETURNS TO SHAREHOLDERS December 31, 2007 – January 16, 2026 page 33
Slide 34: Performance Financial
PERFORMANCE FINANCIAL 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 i
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 (Dollars in millions) 2021 2022 2023 2024 2025 Cash and cash equivalents $ 525 $ 123 $ 130 $ 125 $ 120 Investment securities and other investments* 1,890 1,800 1,648 1,560 1,545 Loans and leases, net of unearned discount 5,360 6,015 6,520 6,857 7,051 Allowance for loan and
Slide 39: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT (Dollars in millions) 2021 2022 2023 2024 2025 Net interest income $ 237 $ 263 $ 279 $ 301 $ 348 (Recovery of provision) provision for credit losses (4) 13 6 12 13 Noninterest income* 86 81 84 82 83 Noninterest expense* 172 174 195 200 214 Income before income taxes 155
Slide 40: Aircraft Portfolio
AIRCRAFT PORTFOLIO INDUSTRIES BY NAICS Construction 10% Manufacturing 14% Retail Trade 7% Ag, Forestry, Fishing & Hunting 10% Wholesale Trade 4% Services 19% Other* 4% Transportation Finance & Insurance & Warehousing and Real Estate 14% 18% * Other includes: Mining, Utilities, and Information page 4
Slide 41: Asset Liability Management
ASSET LIABILITY MANAGEMENT Net Interest Income Sensitivity Interest Rate Risk Characteristics 1 year difference versus no rate change +100 bps Parallel -100 bps Parallel • Variable rate loans reprice quickly Ramp Ramp — 90.8% of Variable reprice within 3 months. • Fixed rate loans have short terms +
Slide 42: Ownership Summary
OWNERSHIP SUMMARY Retail/Other, 1st Source ESOP, 2.7% Institutional, 18.2% 52.7% Institutional 12,850,820 52.7% Insiders 6,417,386 26.4% Retail/Other 4,432,075 18.2% 1st Source ESOP 668,737 2.7% Total Shares Outstanding(1) 24,369,018 100.0% Institution (Top 10 Institutions) Shares % of Total BlackRo
Slide 43: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Yield on Loans and Leases (Dollars in thousands) 2021 2022 2023 2024 2025 (A) Loans and leases interest income (GAAP) $ 234,583 $ 263,677 $ 387,143 $ 451,115 $ 470,768 (B) Plus: loans and leases fully tax-equivalent adjustments 319 366 381
Slide 44: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Net Interest Margin (Dollars in thousands) 2021 2022 2023 2024 2025 (A) Interest income (GAAP) $ 254,772 $ 293,816 $ 416,907 $ 484,017 $ 514,394 (B) Plus: fully tax-equivalent adjustments 459 628 741 586 612 (C) Interest income - FTE (A+B)
Slide 45: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Efficie ncy Ratio (Dollars in thousands) 2021 2022 2023 2024 2025 (A) Net interest income (GAAP) $ 236,638 $ 263,469 $ 278,647 $ 300,817 $ 348,175 (B) Net interest income - FTE 237,097 264,097 279,388 301,403 348,787 (C) Plus: noninterest
Slide 46: Reconciliation of Non-GAAP Financial Measures
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 (A) Total common shareholders' equity (GAAP) $ 762,082 $ 828,277 $ 886,845 $ 916,255 $ 864,068 $ 989,568 $1,111,