1st Source Corporation (SRCE) SEC Filings & Earnings Calls

Aircraft portfolio foreign exposure

“Our aircraft portfolio exhibits collateral concentration and contains $303.85 million of foreign exposure at September 30, 2026, the majority of which is in Mexico and Brazil.” · word for word

Consumer financial stress

“Consumer financial stress indicators remain elevated, economic imbalances persist, and overall consumer sentiment measures remain subdued.” · word for word

Agricultural portfolio pressure

“The agricultural portion of this portfolio continues to face pressure from higher input costs and compressed margins, particularly for grain producers.” · word for word

Pre-tax losses from sale of AFS securities ($3.82M) and charitable contribution ($1M) impacted results

“These results include $3.82 million in pre-tax losses from the sale of approximately $68 million of available-for-sale securities executed in the third quarter as well as a $1.00 million charitable contribution” · word for word

Forward-looking statements subject to risks; no specific risk factors discussed.

“Standard forward-looking statement disclaimer.”

Credit risk in small business and agriculture

“Credit concerns are elevated for small business borrowers. The agricultural portion of this portfolio is under stress as grain producers struggle with higher input costs and low commodity prices.” · word for word

Aircraft portfolio foreign exposure

“Our aircraft portfolio exhibits collateral concentration and contains $305.31 million of foreign exposure at June 30, 2026, the majority of which is in Mexico and Brazil.” · word for word

Auto and light truck portfolio stress

“Within the auto and light truck portfolio, borrowers are contending with lower rental rates, higher fleet carrying costs, and industry overcapacity.” · word for word

Interest rate risk

“At June 30, 2026, the Consolidated Statements of Financial Condition was rate sensitive by $175.37 million more liabilities than assets scheduled to reprice within one year, or approximately 0.96%.” · word for word

Credit quality improving with lower provision and charge-offs

“Provision decreased to $1.54M from $7.69M; allowance 2.30% of loans”

Provision for credit losses more than doubled YoY

“Provision for credit losses of $7.27 million was recorded during the quarter compared to $3.27 million during the previous year's first quarter” · word for word

Deposit outflows, especially brokered deposits

“Average deposits decreased $141.97 million or 1.94% from the first quarter a year ago; average brokered deposits decreased $354.23 million or 57.74% from prior year”

Economic uncertainty impacting clients

“we will continue to focus on safety and soundness given the level of economic uncertainty currently impacting our clients and their businesses” · word for word

Credit quality deterioration in auto and truck portfolios

“Charge-offs in the auto and light truck portfolio were primarily from two unique accounts who provide special trailer units serving the film industry.” · word for word

Agricultural portfolio stress

“The agricultural portion of this portfolio remains under stress as grain producers struggle with higher input costs and low commodity prices.” · word for word

Macroeconomic and trade policy uncertainty

“Key risks include heightened global geopolitical uncertainty, increased volatility and higher energy prices, firming inflationary expectations, ever-changing trade policies, and overall macroeconomic uncertainty.” · word for word

Foreign loan concentration in aircraft portfolio

“Our aircraft portfolio exhibits collateral concentration and contains $321.91 million of foreign exposure at March 31, 2026, the majority of which is in Mexico and Brazil.” · word for word

Cybersecurity investment pressure

“Risks from cybersecurity threats, including risks identified from previous cybersecurity incidents, have required significant investments over time in maturing our Information Security Program and attracting and retaining the personnel with requisite experience and expertise.” · word for word

Concentrated insider ownership

“Christopher J. Murphy III and Carmen C. Murphy together beneficially own 17.32% of the class.”

Key person risk due to Executive Chairman's health condition.

“Executive Chairman undergoing cancer treatment, working remotely for at least nine weeks.”

Repositioning losses from available-for-sale securities

“These results include $5.81 million and $8.68 million in pre-tax losses during the fourth quarter and full year, respectively, from repositioning of available-for-sale securities” · word for word

Key risk management executive departure without disclosed succession plan may create temporary leadership gap.

“Retirement of Chief Risk Officer effective Dec 31, 2025; no replacement announced.”