1st Source Corporation · NASDAQ:SRCE
1st Source — Investor Presentation (August 2026)
46 slides from 1st Source's investor presentation, August 2026
Slide 1: Investor Presentation 2nd Quarter 2026
INVESTOR PRESENTATION 2nd Quarter 2026 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 $9.3 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 $3.44 billion Community Bank Loans & Leases $3.78 billion page 5
Slide 6: Business Mix
BUSINESS MIX Loans & Leases Business Personal 77% 23% COMMUNITY BANKING SPECIALTY FINANCE 52% 48% page 6
Slide 7: Community Banking
COMMUNITY BANKING 78 Banking Centers 96 Twenty-four-hour ATMs 9 Trust & Wealth Advisory locations with approximately $6.6 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 13K RATINGS 6 100% 80 23% 21% 20% 19% 75 75% 12% 11% 10% 70 13% 65 50% 76.8 60 75.2 67% 69% 71% 69.0 71.1 64% 55 25% 50 0% 45 Q2 23 Q2 24 Q2 25 Q2 26 Q2 23 Q2 24 Q2 25 Q2 26 13K RATINGS Mobile & Online Online Only
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 37 years each of banking experience and 30 years with 1st Source Business Banking Officers 38 business banking officers with an average 19 years each of lending experience and with 1st Source from 1 to 33 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 $10 billion #1 Deposit share in our 16 contiguous county market #4 Lender of Community Development Loans (Total Dollars) in State of Indiana by Banks Headquar
Slide 14: Performance Leadership
PERFORMANCE LEADERSHIP 2025 Business Reporter 2026 Forbes’ Best Banks in America • America’s Best Banks • America’s Best Midsize Employers 2024 US News & World Report Best Companies to Work For – Midwest 2026 Fortune 2025 Leaders in Banking Excellence Award, the Indiana • America’s Most Innovative B
Slide 15: Financial Review
FINANCIAL REVIEW
Slide 16: Core Deposit Franchise
CORE DEPOSIT FRANCHISE TOTAL AVERAGE DEPOSITS Core Deposits ($MM) Non-core Deposits ($MM) Effective Rate on Deposits (%) 9,500 4.00% 7382 7310 7119 7,125 6957 6711 915 715 285 918 3.00% 836 6426 6467 6595 6121 6201 4,750 2.34% 2.00% 2.11% 1.85% 1.77% 2,375 1.00% 0.38% 0 0.00% 2022 2023 2024 2025 202
Slide 17: Diversified Deposit Mix
Diversified Deposit Mix End of Period Balances Account Type Owner Classification Savings 20% Consumer (1) 47% Time Public 22% Fund 22% Brokered 4% Interest- bearing demand Noninterest- 36% bearing Business demand 27% 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 ($MM) Yield on Loans & Leases - FTE (%)* 7500 9.00% 7083 6935 8.00% 6598 6500 6204 7.00% 6.84% 6.79% 6.56% 5567 6.25% 6.00% 5500 5.00% 4.74% 4500 4.00% 2022 2023 2024 2025 2026 YTD * See “Reconciliation of non-GAAP Financial Measures
Slide 20: Diversified Loan Portfolio
DIVERSIFIED LOAN PORTFOLIO 2026 Average Loans by Type Commercial Commercial Real Estate 22% 18% Residential Real Estate 10% Aircraft Consumer 15% 2% Medium and Heavy Duty Truck 4% Auto and Light Truck Construction Equipment 12% 17% page 20
Slide 21: Strong Credit Quality
STRONG CREDIT QUALITY % of Net Loans and Leases Loan & Lease Loss Allowance Nonperforming Assets Net Charge-Offs (Recoveries) Solid Reserves Low Nonperforming Assets Limited Losses 2.32% 2.26% 2.27% 2.30% 2.30% 1.10% 1.01% 0.45% 0.46% 0.37% 0.03% 0.09% 0.06% 0.13% -0.04% 2022 2023 2024 2025 2026 202
Slide 22: Net Income & Earnings Per Share
NET INCOME & EARNINGS PER SHARE Net Income ($MM) EPCS (Diluted) $175 $8.00 158.3 $150 $7.00 132.6 124.9 6.41 $6.00 $125 120.5 5.36 $5.00 $100 5.03 4.84 87.5 $4.00 74.8 $75 3.58 $3.00 3.02 $50 $2.00 $25 $1.00 $0 $0.00 2022 2023 2024 2025 2025 2026 YTD YTD 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 $150 121.8 106.8 $100 $50 $0 2022 2023 2024 2025 2025 2026 YTD YTD *See “Reconciliation of non-GAAP Financial Measures” in Appendix. page 23
Slide 24: ROAE and ROATE
INCOME PERFORMANCE METRICS 1st SOURCE PERFORMS WELL AGAINST PEERS WHILE MAINTAINING STRONG CAPITAL LEVELS YTD Median Peer Data* National C&I Midwest ROATE 14.05% 13.43% 3.20% 18.00% ROAE 11.86% 10.86% ROAA 1.29% 1.38% 15.28% 14.40% 14.82% 14.55% 2.60% 14.14% 13.62% ROAE and ROATE 14.00% 13.81% 13.61
Slide 25: Net Interest Margin (FTE)
NET INTEREST MARGIN (FTE)* Net Interest Income ($MM) Net Interest Margin (%) $375 5.25% 348.8 301.4 $300 279.4 264.1 4.24% 4.25% 3.95% $225 4.07% 183.6 166.4 $150 3.64% 3.45% 3.51% 3.25% $75 $0 2.25% 2022 2023 2024 2025 2025 2026 YTD YTD * See “Reconciliation of non-GAAP Financial Measures” in Appen
Slide 26: Diverse Sources of Noninterest Income
DIVERSE SOURCES OF NONINTEREST INCOME Noninterest Insurance Mortgage Income Commissions Banking Equipment Rental 4% Composition 9% 1% Trust, Wealth 2026 = $47.1MM* Advisory, and Retirement Service Charges on Plan Services Deposit Accounts 33% 15% Fair Value of Assets Under Management of $6.6B Debit
Slide 27: Operating Expenses
OPERATING EXPENSES Noninterest Expense ($MM)* Efficiency - Adjusted (%)* $225.0 214.4 70.0% 199.5 194.6 174.7 $175.0 60.0% $125.0 54.2% 51.9% 108.7 51.1% 104.2 49.3% 49.8% 50.0% 47.4% $75.0 $25.0 40.0% 2022 2023 2024 2025 2025 2026 YTD YTD * Note: Noninterest expense is shown net of leased equipment
Slide 28: Strong Capital Position
STRONG CAPITAL POSITION Tier 1 Leverage Ratio Tier 1 Risk Based Ratio 16.79% 16.70% 14.92% 14.99% 15.82% 14.05% 14.69% 14.84% 12.63% 13.26% 8% Well Capitalized 5% Well Capitalized 2022 2023 2024 2025 2026 YTD 2022 2023 2024 2025 2026 YTD Total Risk Based Capital Ratio Tangible Common Equity / Tangib
Slide 29: Long History of Conservative Capital
LONG HISTORY OF CONSERVATIVE CAPITAL Total Capital (To Risk-Weighted Assets) 20.00% 17.96% 18.00% 16.00% 14.00% 12.00% 10% Well 10.00% Capitalized 8.00% 1st Source Corp Well-Capitalized page 29
Slide 30: Tangible Book Value per Common Share
TANGIBLE BOOK VALUE PER COMMON SHARE* $60.00 $55.00 $50.93 $50.00 $48.88 $45.00 $41.89 $40.00 $37.06 $35.00 $33.64 $31.62 $31.63 $30.00 $29.18 $25.00 $20.00 2019 2020 2021 2022 2023 2024 2025 2026 YTD * 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 $1.80 $1.60 1.52 1.40 $1.40 1.30 1.26 1.28 1.21 $1.20 1.10 1.13 $1.00 0.96 $0.80 0.76 0.72 $0.60 $0.40 $0.20 $0.00 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 YTD 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 – July 23, 2026 1st Source Corp (SRCE) KBW NASDAQ Bank NASDAQ Bank S&P 500 Bank KBW NASDAQ Regional Bank 400.00 369.22% 350.00 300.00 250.00 Price Change (%) 200.00 150.00 129.90% 100.00 98.58% 94.85% 50.00 83.36% 0.00 (50.00) (100.00) page 33
Slide 34: Performance Financial
PERFORMANCE FINANCIAL FINANCIAL 2019-2026 KBW Bank Honor Roll Eighth 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
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) 2022 2023 2024 2025 2026 YTD Cash and cash equivalents $ 123 $ 130 $ 125 $ 120 $ 127 Investment securities and other investments* 1,800 1,648 1,560 1,545 1,550 Loans and leases, net of unearned discount 6,015 6,520 6,857 7,051 7,225 Allowance for loan
Slide 39: Consolidated Income Statement
CONSOLIDATED INCOME STATEMENT 2025 2026 (Dollars in millions) 2022 2023 2024 2025 YTD YTD Net interest income $ 263 $ 279 $ 301 $ 348 $ 166 $ 183 Provision for credit losses 13 6 12 13 11 9 Noninterest income* 81 84 82 83 45 47 Noninterest expense* 174 195 200 214 104 108 Income before income taxes
Slide 40: Aircraft Portfolio
AIRCRAFT PORTFOLIO INDUSTRIES BY NAICS Construction Manufacturing 10% 13% Retail Trade 7% Ag, Forestry, Fishing & Hunting 10% Wholesale Trade 5% Services 19% Other* 4% Transportation & Warehousing Finance & Insurance 12% and Real Estate 20% * 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 — 90.1% of Variable reprice within 3 months. • Fixed rate loans have short terms +
Slide 42: Ownership Summary
OWNERSHIP SUMMARY Retail/Other, 1st Source ESOP, 2.8% Institutional, 18.4% 52.5% Shareholder Type Shares % of Total Institutional 12,657,134 52.5% Insiders 6,321,496 26.3% Retail/Other 4,432,514 18.4% 1st Source ESOP 670,682 2.8% Total Shares Outstanding(1) 24,081,826 100.0% Rank Institution (Top 10
Slide 43: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Yield on Loans and Leases (Dollars in thousands) 2022 2023 2024 2025 2026 YTD (A) Loans and leases interest income (GAAP) $ 263,677 $ 387,143 $ 451,115 $ 470,768 $ 113,348 230,099 (B) Plus: loans and leases fully tax-equivalent adjustments
Slide 44: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Net Interest Margin (Dollars in thousands) 2022 2023 2024 2025 2025 YTD 2026 YTD (A) Interest income (GAAP) $ 293,816 $ 416,907 $ 484,017 $ 514,394 $ 250,520 $ 257,214 (B) Plus: fully tax-equivalent adjustments 628 741 586 612 300 309 (C)
Slide 45: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Calculation of Efficiency Ratio (Dollars in thousands) 2022 2023 2024 2025 2025 YTD 2026 YTD (A) Net interest income (GAAP) $ 263,469 $ 278,647 $ 300,817 $ 348,175 $ 166,130 $ 183,280 (B) Net interest income - FTE 264,097 279,388 301,403 348,787 166,430
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) 2019 2020 2021 2022 2023 2024 2025 2026 YTD (A) Total common shareholders' equity (GAAP) $ 828,277 $ 886,845 $ 916,255 $ 864,068 $ 989,568 $1,111,068 $1