How Strong Q4 Results And 38 Years Of Dividend Growth At 1st Source (SRCE) Have Changed Its Investment Story

• 1st Source Corporation recently reported a very strong fourth quarter, with revenue up 13.3% year on year and net interest income and EPS ahead of analyst expectations, while also marking its 38th consecutive year of dividend growth and fifth straight year of record net income.
• Alongside these results, 1st Source is scheduled to share its outlook and performance at the KBW 2026 Winter Financial Services Conference in Boca Raton on 11 February 2026, underscoring how management is positioning the bank after this extended run of earnings and dividend increases.
• Against this backdrop of robust quarterly performance and a long dividend growth record, we’ll examine how these developments shape 1st Source’s investment narrative.

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What Is 1st Source's Investment Narrative?

To own 1st Source today, you have to believe in a fairly conservative banking story: steady net interest income, disciplined credit costs and a management team that prioritizes dividend growth and measured buybacks over rapid expansion. The latest quarter, with double‑digit revenue growth, another record year of earnings and a 38‑year dividend growth streak, reinforces that narrative rather than changing it. The upcoming KBW Winter Financial Services Conference is more about signalling confidence after this run than resetting expectations, so it is unlikely to shift the main short term catalysts, which still sit around margins, loan growth and credit quality. The key risk, in my view, is that earnings growth slows while the market has already rerated the shares after a strong recent price move.

However, one risk around future growth expectations is easy to overlook and investors should not. 1st Source's shares have been on the rise but are still potentially undervalued by 48%. Find out what it's worth.

Exploring Other Perspectives

Simply Wall St Community members offer three very different fair value views for 1st Source, ranging from around US$76 to a very large outlier, underlining how far opinions can stretch. Set against recent record earnings and a long dividend growth history, this spread invites you to weigh how much faith you place in continued loan growth, stable margins and conservative risk management over the next few years.

Explore 3 other fair value estimates on 1st Source - why the stock might be worth just $76.33!

Build Your Own 1st Source Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your 1st Source research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free 1st Source research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate 1st Source's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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