1st Source (SRCE) Q2 2026: EPS Beats by 14%, Dividend Jumps 18%
As seen on the 24/7 Wall St. homepage on July 23, 2026.
1st Source crushed earnings with a $1.95 EPS beat and hiked its dividend 18%, fueled by a dramatic plunge in credit loss provisions that powered net income up 27% year-over-year despite revenue declining 21%.
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1st Source reported Q2 2026 earnings per share of $1.95, clearing the $1.71 consensus estimate by nearly 14%. Revenue came in at $118.2 million, topping expectations of $114.1 million by about 3.5%. The results extended a consistent run of beats — the bank has now come in above analyst EPS estimates in every quarter going back at least to Q3 2024.
The headline profit driver was a dramatic decline in credit loss provisions, which powered net income 27% higher year over year even as total revenue fell 21%. That combination — sharply lower loss reserves releasing capital into earnings while top-line revenue contracts — suggests management grew more confident in the quality of its loan book rather than simply growing its way to a better bottom line.
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Alongside the earnings beat, 1st Source hiked its dividend by 18%, signaling that the board views the improved profitability as durable enough to return more cash to shareholders. Investors will want to watch whether the provision relief continues in coming quarters or whether credit costs begin to normalize, which would put renewed pressure on earnings growth.
Mentioned: SRCE