1st Source Raises Quarterly Dividend 4.65% to $0.45

1st Source Corporation (NASDAQ: SRCE) increased its quarterly dividend to $0.45 per share from $0.43, a 4.65% rise. The financial-services company’s shares had an ex-dividend date of Aug. 4, 2026.

The increase extends 1st Source’s dividend-growth streak to nine consecutive years. The locked data lists an annual dividend of $1.68 per share and a forward annual yield of 1.95%, based on a share price of $86.17.

The dividend announcement accompanied a record second quarter for the South Bend, Indiana-based company. 1st Source reported quarterly net income of $47.54 million, an increase of 27.40% from the same period a year earlier. Average loans and leases rose 2.50% year over year, while average deposits increased 1.07%. The company also reported a lower provision for credit losses compared with both the preceding quarter and the prior-year period. 1st Source’s second-quarter earnings release

Chief Executive Andrea Short said the bank preserved its net interest margin, improved its efficiency ratio and further strengthened its balance sheet during the quarter. Those operating trends provide context for the board’s decision to raise the payout, though future dividends remain subject to board approval and business conditions.

Company context

1st Source is the parent of 1st Source Bank. Its operations include commercial and consumer banking, trust and wealth-advisory services, and insurance. The bank primarily serves markets in Indiana and Michigan, as well as Sarasota County, Florida. It also operates a nationwide specialty-finance business focused on construction equipment, private and cargo aircraft, and vehicles used for commercial fleets. 1st Source 2025 Form 10-K

The company has a market capitalization of $2.075 billion. Its dividend carries a safety score of 99 out of 100 and an A grade under the supplied methodology.

What it means for income investors

The higher quarterly rate increases the cash distribution per share while continuing the company’s nine-year growth streak. At the stated share price, the forward yield is 1.95%, making the event more notable for payout growth and consistency than for a high current yield. The safety score indicates a strong assessment under the supplied framework, but it does not guarantee that future dividends will be maintained or increased.