1st Source Bank

What 1st Source Bank does

1st Source Bank is the wholly-owned banking subsidiary of 1st Source Corporation (NASDAQ: SRCE), a 162-year-old regional bank holding company headquartered in South Bend, Indiana. The bank operates 78 banking centers across 19 counties in northern Indiana, southwestern Michigan, and Sarasota County, Florida, serving individual consumers, small and mid-sized businesses, high-net-worth households, government entities, and clients in selected specialty-finance verticals (aircraft, solar, fleet, healthcare/dental, agriculture, and municipal). Deposit and lending products — checking, savings, CDs, mortgages, auto, personal and commercial loans, SBA loans, leasing, treasury services, merchant card processing, and retirement plan administration — are delivered through the branch network plus an integrated online and mobile banking platform. Beyond core banking, the company runs a Wealth Advisory business (described as the region's largest trust and estate team), a Specialty Finance Group with national-scope equipment financing, and 1st Source Insurance, all contributing fee income on top of net interest income of $348.18 million in 2025. The bank also emphasizes financial education via its 'You 1st' program and brand marketing around its registered 'Straight Talk And Sound Advice®' positioning.

The core technology stack is standard commercial banking infrastructure: a multi-channel digital platform with online banking, a mobile app featuring Card Control, digital wallet support (Apple Pay, Google Pay, Samsung Pay), and Zelle integration. Business clients receive BBO Treasury for cash management, wire/ACH origination, real-time Immediate Payments via the RTP network, and Autobooks embedded accounting. Conversational support is handled by 'Uno,' an NLP chatbot, and security relies on automated fraud monitoring that flags suspicious activity and triggers customer notifications. Compliance posture includes CCPA and GDPR-aligned privacy disclosures and WCAG 2.0 Level AA accessibility certifications.

The revenue model is a hybrid of net interest income (interest earned on loans and securities minus interest paid on deposits) and non-interest income streams from deposit service fees, wealth/trust fees, insurance commissions, and specialty-finance transaction and leasing revenue. The 2025 financial performance (FY2025 net income of $158.28M, up 19.34% YoY) was driven by disciplined loan pricing, expense management, and net interest margin expansion. The bank maintains a regional, relationship-led GTM motion — sales-led and locally executed through 78 physical branches plus digital channels — and rewards shareholders through 38 consecutive years of dividend growth ($0.40 quarterly as of 2026).

Name

1st Source Bank

Legal name

1st Source Corporation

Website

https://1stsource.com

Company type

Public

Founded year

1863

Operating status

Operating

Headcount range

1,001–5,000 employees

Short description

1st Source Bank, the wholly-owned banking subsidiary of NASDAQ-listed 1st Source Corporation, is a South Bend, Indiana-based regional bank operating 78 branches across northern Indiana, southwestern Michigan, and Sarasota County, Florida, serving consumers, small and mid-sized businesses, and high-net-worth clients with deposits, lending, wealth advisory, insurance, and specialty equipment finance.

Ownership category

akta.pro rank

Product category

Retail and Commercial Banking

NAICS

Commercial Banking (52211), Commercial Banking (522110), Depository Credit Intermediation (5221)

SIC

National Commercial Banks (6021)

akta.pro primary industry

Mass-Market Consumer Deposit Banking (Checking/Savings) (FSABAAAA)

Keywords

• Retail banking services
• Commercial lending
• Wealth management
• Specialty finance
• Trust services

Headquarters

HQ city

South Bend

HQ country

United States

HQ region

North America

Offices21 records

Markets served

GTM type

B2B and B2C

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure, Others

Revenue model

1. Net Interest Income: Interest earned on loans and securities minus interest paid on deposits. Primary revenue driver for the bank.
2. Non-interest Income: Fees from deposit services, trust and wealth management services, insurance products, and specialty finance operations.
3. Specialty Finance: Equipment financing and specialty lending services including aircraft financing, solar financing, healthcare financing, and fleet financing.

Pricing tiers

Go-to-market motion1 record

Distribution channels5 records

Marketing channels5 records

Core offering

1st Source Bank provides a full suite of retail and commercial banking products, including checking and savings accounts, CDs, consumer and business loans, mortgages, and credit cards. It also delivers wealth management, trust and estate services, insurance, and specialty finance divisions (aircraft, solar, fleet, healthcare, agricultural, and municipal financing). Services are delivered through 78 banking centers across northern Indiana, southwestern Michigan, and Sarasota County, Florida, complemented by online and mobile banking.

Product overview

1st Source Bank operates as a regional bank holding company offering a comprehensive suite of financial products and services through both consumer and commercial channels. The product portfolio consists of core retail banking products (checking, savings, CDs, credit cards, loans), complemented by specialized business divisions including the Specialty Finance Group offering aircraft financing, solar financing, fleet financing, healthcare/physician loans, and municipal banking services. The bank delivers its services through a digital banking platform encompassing online and mobile banking with BBO Treasury for business clients, supplemented by in-person banking centers across northern Indiana, southwestern Michigan, and Florida. The company also provides wealth management, trust services, insurance products, and retirement plan administration. Key digital features include Card Control, Digital Wallet support, the Uno virtual assistant, and integrated accounting through Autobooks. The bank's Specialty Finance Group is recognized in the equipment finance industry, with executives named to watch lists for 2026.

Differentiator

Problem solved

Functional benefit

Brands

• Specialty Finance Group: Equipment and specialty financing services including fleet financing, aircraft financing, and solar financing
• 1st Source Insurance
• You 1st
• Uno

Products and services

• 1st Checking Primary personal checking account offering standard banking features including online and mobile access, debit card, and overdraft protection options for individual consumers.
• Portfolio Checking Premium checking account with relationship pricing benefits, offering higher yields and waived fees for qualifying account holders.
• Personal Savings Accounts Savings products including traditional savings, e-Student Savings, Holiday Savings Account, and Individual Retirement Accounts (IRAs) for various personal savings goals.
• Certificates of Deposit (CDs) Fixed-term deposit accounts offering guaranteed returns with various maturity options ranging from months to several years.
• Auto Loans Vehicle financing for new and used automobiles with competitive rates, flexible terms, and easy online application process for individual consumers.
• Home Loans/Mortgage Residential mortgage products including purchase loans, refinancing options, Home Equity Lines of Credit (HELOC), and special mortgage programs with closing cost assistance.
• Personal Loans Unsecured personal loans for various needs including debt consolidation, home improvements, and major purchases with fixed rates and terms.
• Consumer Credit Cards Credit card products for personal use with various reward structures, rates, and benefits including fraud protection and mobile access.
• Wealth Management Comprehensive wealth management services including investment management, retirement planning, estate planning, and private banking for high-net-worth individuals.
• Insurance Services Personal and business insurance products including life insurance, property insurance, and business coverage through affiliated insurance agencies.
• Business Checking Accounts Commercial checking solutions with features like analysis accounts, merchant services integration, and treasury management tools for businesses of all sizes.
• Business Loans Commercial lending products including term loans, revolving lines of credit, SBA loans, and industry-specific financing for business expansion and operations.
• Business Leasing Equipment and vehicle leasing solutions for commercial clients including fleet financing and specialized equipment loans.
• Treasury Services Cash management solutions including BBO Treasury platform, wire transfers, ACH origination, and advanced payment solutions for business liquidity management.
• Merchant Card Services Payment processing solutions enabling businesses to accept credit and debit card transactions with point-of-sale integration and reporting tools.
• Retirement Plan Services Employee retirement plan administration including 401(k) plans, profit sharing, and individual retirement accounts for business clients.
• Specialty Finance Group Specialized financing divisions including aircraft financing, solar financing, fleet financing, healthcare and dental practice loans, municipal banking, and agricultural business banking.
• Trust Services Trust and estate administration services managed by professional trust officers for wealth preservation and generational transfer.
• SBA Loans Small Business Administration loan programs providing government-backed financing for eligible small businesses with favorable terms.
• Farm Loans Agricultural financing products tailored for farming operations including operating loans, equipment financing, and land purchases.
• Aircraft Financing Specialized aviation lending for private and commercial aircraft purchases with industry-specific expertise and competitive rates.
• Solar Financing Group Renewable energy project financing for solar installations supporting both commercial and residential solar energy adoption.
• Healthcare and Physician Loans Specialized financing for medical practices including equipment loans, working capital, and practice acquisition financing for healthcare professionals.
• Municipal Banking Services Banking services designed for government entities, municipalities, and public institutions including deposit services and specialized lending.
• Online and Mobile Banking Digital banking platform providing 24/7 account access through web and mobile applications with features including bill pay, account transfers, mobile check deposit, and account management tools.
• BBO Treasury Business Banking Online Treasury management platform offering advanced cash management, loan management, wire origination, ACH origination, and user administration capabilities.

Named customers3 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration4 records

AI capability2 records

Scale indicators7 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Banner Corporation: Pacific Northwest-based bank holding company with a similar mix of commercial, consumer, and specialty finance lending, providing a useful peer benchmark for diversified mid-sized regional banks.
• Old National Bancorp: Midwest regional bank holding company with a comparable mix of retail, commercial, wealth, and specialty banking; similar size and customer profile make it one of the closest publicly traded peers for performance benchmarking.
• S&T Bancorp: Pennsylvania-based community-oriented bank holding company with a similar mix of commercial lending, wealth management, and consumer banking — a useful comparable for capital allocation and dividend track record benchmarking.
• Lakeland Financial Corporation: Lakeville, Indiana-based parent of Lake City Bank, a comparable Midwest community bank with a strong commercial lending focus, dividend-growth heritage, and similar client base to 1st Source across northern Indiana markets.
• Stock Yards Bancorp: Louisville-based bank holding company with a similar relationship-banking model, wealth management franchise, and commercial lending focus — a strong operational comparable despite geographic differences.
• German American Bancorp: Indiana-headquartered community/commercial bank with overlapping Midwest footprint and similar business banking, treasury, and wealth services — a close direct competitor in shared Indiana counties.
• First Financial Bancorp: Ohio and Indiana-based regional commercial bank with comparable business banking, treasury management, and wealth services, providing another peer benchmark for a Midwest-focused franchise.
• First Merchants Corporation: Indiana-headquartered publicly traded bank holding company with a similar Midwestern community/commercial banking model, comparable asset size, and overlapping footprint in Indiana — a direct competitor for deposits, business loans, and wealth management in the same core markets.
• Horizon Bancorp: Indiana and Michigan-based regional bank with consumer and commercial banking offerings, directly competing with 1st Source across the same northern Indiana and southwestern Michigan footprint.
• City Holding Company: West Virginia-based regional bank with a community banking model, commercial lending focus, and consistent dividend track record — a close operational analog outside the Midwest geography.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/1stsourcebank
• YouTubeyoutube.com/1stsourcebank
• Facebookfacebook.com/partnersfromthefirst
• LinkedInlinkedin.com/company/1st-source-bank
• Instagraminstagram.com/1stsourcebank

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments6 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about 1st Source Bank