1st Source Corporation (SRCE): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the story behind 1st Source Corporation (SRCE), a financial institution with a history stretching back to 1863? As the largest locally controlled financial institution in the northern Indiana-southwestern Michigan area, with assets of $8.9 billion, 1st Source has deep roots in the communities it serves. Keep reading to discover its journey, who steers the ship, and how it continues to thrive in today's dynamic market.

1st Source Corporation (SRCE) History

1st Source Corporation Founding Timeline

Year established

The company was established in 1863.

Original location

The company was founded in South Bend, Indiana.

Founding team members

The original founder was Clement Studebaker.

Initial capital/funding

Initially capitalized with $25,000, the St. Joseph County Bank, later known as 1st Source Bank, was established to support the local Studebaker wagon manufacturing business during a time of economic uncertainty caused by the Civil War.

1st Source Corporation Evolution Milestones

1st Source Corporation Transformative Moments

• Diversification and Expansion: Over the years, the company expanded its services beyond traditional banking to include wealth advisory, insurance, and specialized financing solutions. This diversification helped 1st Source Corporation to cater to a wider range of client needs and reduce its reliance on any single line of business.
• Strategic Acquisitions: The acquisition of FirsTier Financial in 1997 significantly expanded 1st Source's footprint in northern Indiana and southwestern Michigan, enhancing its market share and service capabilities.
• Adaptation to Technological Advancements: Embracing digital banking and technology solutions has been crucial for 1st Source to remain competitive. Investments in online and mobile banking platforms have improved customer experience and operational efficiency.
• Community Engagement and Corporate Responsibility: 1st Source has consistently emphasized community involvement and corporate social responsibility. This focus has not only strengthened its brand image but also fostered long-term relationships with customers and local stakeholders.
• Navigating Economic Cycles: Successfully navigating various economic cycles, including recessions and periods of growth, has demonstrated the company's resilience and prudent risk management.

To learn more about the investor profile, check out: Exploring 1st Source Corporation (SRCE) Investor Profile: Who’s Buying and Why?

1st Source Corporation (SRCE) Ownership Structure

1st Source Corporation exhibits a mixed ownership structure, featuring a combination of institutional, retail, and insider holdings. This blend reflects diverse investor confidence and perspectives on the company's value and prospects. You might also be interested in: Breaking Down 1st Source Corporation (SRCE) Financial Health: Key Insights for Investors

1st Source Corporation's Current Status

1st Source Corporation is a publicly traded company, meaning its shares are available for purchase by the general public on a stock exchange. As a publicly-held entity, it is subject to regulatory oversight and reporting requirements, ensuring transparency in its operations and financial performance.

1st Source Corporation's Ownership Breakdown

The following table summarizes the ownership composition of 1st Source Corporation based on the latest available data.

1st Source Corporation's Leadership

The leadership team at 1st Source Corporation is responsible for setting the strategic direction of the company and overseeing its day-to-day operations. Here are some of the key figures:

• Andrea Short: President and CEO of 1st Source Corporation and 1st Source Bank.
• Daniel B. Lieder: Serves as Senior EVP & CFO.
• James Seitz III: Is the Chairman of the Board.

1st Source Corporation (SRCE) Mission and Values

1st Source Corporation is dedicated to being more than just a financial institution; it strives to enrich the lives of its clients, associates, and communities. This commitment is reflected in its mission and values, which emphasize integrity, client focus, and community involvement.

1st Source Corporation's Core Purpose

Official mission statement

1st Source Corporation's mission statement is: 'To be the best at helping our clients achieve security, build wealth and realize their dreams.'

• Security: Providing financial stability and peace of mind to clients.
• Wealth Building: Assisting clients in growing their financial assets.
• Dream Realization: Helping clients achieve their personal and financial goals.

Vision statement

While a specific, formally declared vision statement is not explicitly available in recent public documents, 1st Source Corporation's actions and communications suggest a vision focused on:

• Sustained Growth and Stability: Maintaining a strong financial position to support long-term client relationships.
• Community Leadership: Playing an active role in the economic and social well-being of its communities.
• Client-Centric Innovation: Continuously improving services and products to meet evolving client needs.

Company slogan/tagline

1st Source Corporation uses the tagline 'Here for good.' This slogan encapsulates the company's commitment to:

• Long-Term Relationships: Being a reliable partner for clients through various life stages.
• Ethical Conduct: Operating with integrity and a strong sense of responsibility.
• Community Support: Investing in the well-being and prosperity of the areas it serves.

To gain more insights into the financial stability of 1st Source Corporation, check out: Breaking Down 1st Source Corporation (SRCE) Financial Health: Key Insights for Investors

1st Source Corporation (SRCE) How It Works

1st Source Corporation operates as the bank holding company for 1st Source Bank, providing a range of financial services to individuals, businesses, and community organizations. The bank focuses on building long-term relationships through personalized service and comprehensive financial solutions.

1st Source Corporation's Product/Service Portfolio

1st Source Corporation's Operational Framework

1st Source Corporation delivers financial services through a network of community banking centers, commercial banking offices, and wealth advisory locations. The company's operations are supported by a centralized infrastructure that ensures regulatory compliance, risk management, and operational efficiency.

• Customer Relationship Management: 1st Source emphasizes building strong, lasting relationships with its clients by offering personalized service and tailored financial solutions.
• Credit Underwriting: The bank employs a disciplined approach to credit underwriting, carefully assessing the creditworthiness of borrowers to mitigate risk.
• Treasury Management: 1st Source provides businesses with treasury management services to optimize cash flow, manage liquidity, and streamline payment processes.
• Investment Management: The wealth advisory team manages investment portfolios based on clients' individual goals, risk tolerance, and time horizon.
• Community Involvement: 1st Source actively supports the communities it serves through charitable giving, volunteerism, and sponsorships.

1st Source Corporation's Strategic Advantages

1st Source Corporation maintains a competitive edge through several key strategic advantages:

• Strong Local Presence: With a history dating back to 1863, 1st Source has deep roots in the communities it serves, giving it a strong understanding of local market dynamics.
• Diversified Business Model: 1st Source offers a broad range of financial services, reducing its reliance on any single line of business.
• Experienced Management Team: The company's leadership team has extensive experience in the financial services industry, providing stability and strategic direction.
• Commitment to Technology: 1st Source invests in technology to enhance its products and services, improve efficiency, and provide a seamless customer experience.
• Sound Financial Performance: 1st Source has a track record of consistent profitability and strong financial performance, enabling it to reinvest in its business and return value to shareholders. In 2024, the company reported net income of $98.7 million, or $3.82 per diluted share. Total assets reached $8.67 billion, while total deposits amounted to $6.75 billion. These figures underscore the bank's financial health and stability.

To gain more insights into the company's financial standing, consider reading this analysis: Breaking Down 1st Source Corporation (SRCE) Financial Health: Key Insights for Investors

1st Source Corporation (SRCE) How It Makes Money

1st Source Corporation primarily makes money through its banking and trust services. These services include accepting deposits, making loans, and providing wealth advisory and investment management services.

1st Source Corporation's Revenue Breakdown

Here's a breakdown of 1st Source Corporation's revenue streams based on the 2024 fiscal year:

1st Source Corporation's Business Economics

1st Source Corporation's business economics are influenced by several factors:

• Interest Rate Spread: The difference between the interest earned on loans and the interest paid on deposits is a critical driver of profitability. Fluctuations in interest rates can significantly impact net interest income.
• Loan Portfolio Composition: The mix of commercial, residential, and consumer loans affects the overall yield and risk profile of the loan portfolio. Strategic allocation to higher-yielding or lower-risk loan categories can enhance profitability and stability.
• Fee Income: Revenue from services like wealth management, trust services, and service charges contributes to non-interest income. Growth in these areas can diversify revenue streams and reduce reliance on net interest income.
• Operating Efficiency: Managing operating expenses is crucial for maintaining profitability. Efficiency ratios, such as the efficiency ratio (operating expenses as a percentage of revenue), are closely monitored.
• Credit Quality: The quality of the loan portfolio, as reflected in metrics like non-performing loans and net charge-offs, impacts profitability. Lower credit costs contribute to higher earnings.

To learn more about 1st Source Corporation, check out: Mission Statement, Vision, & Core Values of 1st Source Corporation (SRCE).

1st Source Corporation's Financial Performance

Key aspects of 1st Source Corporation's recent financial performance include:

• Net Interest Income: Net interest income is a significant component of 1st Source's revenue. In 2024, this figure was influenced by interest rate movements and the composition of the loan portfolio.
• Non-Interest Income: Non-interest income provides diversification. This includes revenue from service charges, trust and investment services, and other fees.
• Asset Quality: Monitoring asset quality through metrics like non-performing assets as a percentage of total assets is crucial. 1st Source maintains a focus on managing and minimizing non-performing assets.
• Capital Adequacy: 1st Source maintains capital ratios above regulatory requirements, ensuring financial stability. Common Equity Tier 1 (CET1), Tier 1 Risk-Based Capital, and Total Risk-Based Capital are key metrics.
• Profitability Ratios:
  • Return on Assets (ROA): Measures how efficiently a company is using its assets to generate earnings.
  • Return on Equity (ROE): Measures how efficiently a company is using equity to generate earnings.
  • Net Interest Margin (NIM): Measures the difference between the interest income generated from loans and investments and the interest expenses paid on deposits and borrowings, relative to the amount of interest-earning assets.

1st Source Corporation (SRCE) Market Position & Future Outlook

1st Source Corporation is strategically positioned to maintain a strong regional presence, leveraging its community-focused banking model. While facing competition from larger national banks and emerging fintech companies, 1st Source aims to capitalize on its deep local market knowledge and customer relationships. Future outlook involves steady, sustainable growth with an emphasis on digital transformation and enhanced customer experience.

Competitive Landscape

Opportunities & Challenges

Industry Position

1st Source Corporation operates as a regional bank within a highly competitive financial services industry. Its position is characterized by:

• A focus on community banking, emphasizing personalized service and local decision-making.
• A strong presence in Northern Indiana and Southwestern Michigan.
• Commitment to adapting to technological advancements while maintaining customer relationships.

To delve deeper into the company's guiding principles, explore: Mission Statement, Vision, & Core Values of 1st Source Corporation (SRCE).