New York, June 4, 2026, 19:00 EDT
1st Source Corp. climbed 2.7% to $74.65 late Thursday as regional banks bounced. That move put the South Bend, Indiana bank’s market cap near $1.81 billion. Shares changed hands between $73.31 and $74.90, with trading volume at roughly 131,400 shares.
Smaller bank stocks have mostly followed the same playbook lately, with investors focusing on funding costs, loan demand and credit losses instead of growth stories. 1st Source (SRCE) moved after its first-quarter numbers, which showed profit up from a year ago, a raised dividend and a higher loan loss reserve.
Nasdaq’s main trading closed for the day as usual at 4:00 p.m. Eastern. Regular hours are 9:30 a.m. to 4:00 p.m., but after-hours trading goes through 8 p.m. There was no sign that June 4 would be a market holiday for Nasdaq in 2026.
Wall Street was mostly positive. The Dow ended at a record, while financial stocks led gains in the S&P 500, Reuters said. But chip stocks dragged, keeping the Nasdaq in check.
Regional banks traded up across the board. First Merchants finished higher by 3.1%, Old National Bancorp climbed 2.9%, while First Financial Bancorp picked up 2.6%. The SPDR S&P Regional Banking ETF, which tracks the group, was up 3.1%.
1st Source posted a first-quarter net of $39.96 million, climbing 6.5% year over year. Diluted EPS increased to $1.63 from $1.52. The board moved up the dividend to 43 cents a share.
Chief Executive Andrea G. Short said the company closed out 2025 and the first quarter with a “very strong and stable balance sheet.” She said management plans to stick with a focus on “safety and soundness” while clients deal with economic uncertainty. 1st Source
The bank’s net interest margin stood at 4.25% on a tax-equivalent basis in the first quarter, up 35 basis points from a year ago. The margin slipped by four basis points from the previous quarter. A basis point equals one-hundredth of a percentage point.
Loan growth came in soft but stayed positive. Average loans and leases climbed 3.3% to $7.02 billion from a year ago, mostly on gains in renewable energy, commercial, ag lending, and commercial real estate. Average deposits slipped 1.9% to $7.19 billion, but deposits not counting brokered deposits were up 3.2%. Brokered deposits, which are raised via third parties, tend to react more to rate changes than local customer funds.
Credit risk is in focus. 1st Source booked a $7.27 million provision for credit losses, up from $3.27 million a year ago and $0.71 million last quarter. The allowance for loan and lease losses increased to 2.33% of total loans and leases. The company pointed to a weaker economic outlook with added uncertainty.
Downside for the stock would come if funding costs stop dropping, deposit balances fall, or commercial borrowers get softer. The better margin that helped 1st Source in Q1 could get squeezed. Still, shares traded higher Thursday, with investors overlooking the risks as financials drew interest that day.
